Seibu : Notice Concerning Supervisory Dispositions under the Construction Business Act

[Translation for Reference Only]

ENGLISH TRANSLATION OF DOCUMENT IN JAPANESE

This is an English translation of an original document in Japanese and is only provided for convenience. In all cases, the original Japanese version takes precedence.

July 21, 2023

For immediate release

Notice Concerning Supervisory Dispositions under the Construction Business Act

In the press release titled Notice Concerning Announcement of Receipt of Investigative Report by Third-Party Investigation Committee dated March 12, 2021, we announced the lack of practical experience at the time of acquiring qualifications, including construction management engineers, at our consolidated subsidiaries, Seibu Landscape Co., Ltd. (Headquarters: Toshima Ward, Tokyo; President: Satoshi Oshima; hereinafter referred to as Seibu Landscape Co., Ltd.) and Seibu Green Management Co., Ltd. (Headquarters: Tokorozawa City, Saitama Prefecture; Representative Director: Tomokazu Ueda Co., Ltd.; hereinafter referred to as Seibu Green Management Co., Ltd.)

In relation to this incident, we received today instructions under Article 28, paragraph (1) of the Construction Business Act, and business suspension penalties pursuant to paragraph (3) of the same Article of the said Act, both of which were rendered by Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism.

We would like to sincerely apologize for the considerable concern and inconvenience we have caused all our customers and other stakeholders.

Seibu Landscape, Seibu Green Management, and we, as the parent company, have been working diligently to implement the recurrence prevention measures announced on March 12, 2021. We take the orders received today seriously and will continue our efforts to restore trust in the company.

1.About Seibu Landscape Co., Ltd.

(1) Overview of the dispositions

[Instructions under Article 28, paragraph 1 of the Construction Business Act]

① To prevent the recurrence of this violation, the following measures must be taken as a minimum. ・Promptly inform executives and employees of the violation and the actions taken as a result (the

disposition).

・To ensure thorough compliance with the Construction Business Act and related laws and regulations, training and education plans (hereinafter referred to as "training, etc.") are to be prepared, and necessary training shall be provided to officers and employees on an ongoing basis.

・Investigate and inspect internal business operation methods, and develop and strengthen the business management system.

②Promptly report in writing the measures taken for each item of the preceding paragraph (including the measures taken in cases where measures other than those pertaining to the preceding paragraph are applied).

③In violation of the provisions of Article 15, Item 2 of the Construction Business Law, a person who did not satisfy the qualification requirements was assigned as a full-time engineer at the business office. This action is deemed to fall under the main clause of Article 28(1) of the Construction Business Act.

[Business suspension penalties underArticle 28, paragraph 3 of the Construction Business Act]

① Scope of operation subject to suspension:

Sales related to landscaping construction in Ibaraki, Tochigi, Gunma, Saitama, Chiba, Tokyo, Kanagawa, Yamanashi, and Nagano Prefectures, and related to public works.

②Period: 22 days from August 5, 2023 to August 26, 2023

③Reasons: In violation of the provisions of Article 26, Paragraph 2 of the Construction Business Law, a person who did not satisfy the qualification requirements was assigned to the construction site as a supervising engineer. This is deemed to fall under Article 28(1)(ii) of the Construction Business Act.

2.About Seibu Green Management Co., Ltd.

(1) Overview of the dispositions

[Business suspension penalties under Article 28, paragraph 3 of the Construction Business Act]

① Scope of operation subject to suspension:

Sales related to landscaping construction in Ibaraki, Tochigi, Gunma, Saitama, Chiba, Tokyo, Kanagawa, Yamanashi, and Nagano Prefectures, and related to public works.

②Period: 15 days from August 5, 2023 to August 19, 2023

③Reasons: In violation of the provision of Article 26, Paragraph 2 of the Construction Business Act, a person who did not satisfy the qualification requirements was assigned to the construction site as a supervising engineer. This is deemed to fall under Article 28(1)(ii) of the Construction Business Act.

3.Impact on business results

The impact on the consolidated earnings forecasts for the year ended March 31 is immaterial.

End