Dear Shareholders,

On behalf of Misawa Homes, I would like to express my sincere gratitude for your continued support.
Between September and October in 2019, Typhoons Faxai and Hagibis (Typhoon No. 15 and No. 19), as well as subsequent record-breaking heavy rains caused by cyclones, brought significant damage in many areas. I would like to express my heartfelt sympathy to everyone affected by these disasters and I hope that life will be back to usual as soon as possible.
We have been working early on aiming for high-resilience housing and urban development in line with the objectives of the Ministry of Land, Infrastructure, Transport and Tourism and made proposals for disaster prevention and mitigation. Going forward, we will continue to play the role of a housing manufacturer by providing a safer and more secure living environment against the threat of natural disasters including floods.
As already announced, in January 2020, the Company will become a subsidiary of the joint venture newly established through the investment of Toyota Motor Corporation and Panasonic Corporation, with the aim of creating a "connected city" society that will bring new value throughout the city. What led us to this decision was our recognition that taking on new challenges through this joint venture is our best option for the Group to grow sustainably in the future and further improve corporate value. Taking advantage of the strengths cultivated in urban development such as single-family detached homes and compact cities, the Group will not only play the role of a housing manufacturer providing mainly single-family detached homes, but also strive to evolve and grow as an urban development company that provides attractive services with higher added value.

Last but not least, as the share exchange proposal was approved at the Extraordinary General Meeting of Shareholders, the Company's shares will be delisted from the stock exchange on December 30, 2019.
I would like to express my gratitude for the shareholders' generous support over the years since the Company's listing. In closing, I would like to request our shareholders' continued understanding and support as the Group will work together to fulfill its social mission based on the spirit of our corporate slogan "Lifelong commitment to customers through housing."

November 2019