CRE : Notice Regarding Second Medium-Term Management Plan

	September 9, 2021
(Translated from the Japanese original)
Company name: CRE, Inc.
Representative:	Tadahide Kameyama, President
Stock listing:	First Section of the Tokyo Stock Exchange
Stock code:	3458
Contact:	Hidetoshi Nagahama, Director, Managing
	Executive Officer
E-mail:	[e-mail]

Notice Regarding Second Medium-Term Management Plan

CRE, Inc. (hereafter, "CRE" and "the Company") hereby gives notice of a new, five-yearmedium-term management plan that runs from the fiscal year ending July 31, 2022, to the fiscal year ending July 31, 2026. The new plan is described below.

For further details, please refer to the attached document "Second Medium-Term Management Plan (Fiscal 2022-Fiscal 2026)."

Details

1. About Second Medium-Term Management Plan (Fiscal 2022-Fiscal 2026)
   Guided by a business vision to be "the No.1 corporate group with a logistics infrastructure platform that connects people and things of our world," CRE led the CRE Group through the First Medium-Term Management Plan (Fiscal 2019-Fiscal 2021), seeking to build a structure for sustainable corporate growth in the logistics real estate business.
   The business environment continues to change-significantly and at a fast pace-spurred in particular by reconfirmation of logistics as a component of social infrastructure, a wider embrace of digital transformation driven by innovation based on the Internet of Things (IoT), artificial intelligence (AI) and other advanced technologies, heightened awareness of the global environment, and a firm commitment to achieve sustainable development goals (SDGs). Against this backdrop, CRE drafted its Second Medium-Term Management Plan to promote the shift from a corporate group providing one-stop logistics real estate services to a corporate group with a solid foundation in all services that support logistics and to develop into a company that constantly contributes to society through growth in existing domains, an expanding presence and higher profitability in overseas operations, and an added presence in new businesses with rising profitability.
2. Numerical Targets (Consolidated)

Target amount	Second Medium-Term	First Medium-Term
	Management Plan	Management Plan (actual results)
Business profiti	By July 31, 2026	As of July 31, 2021
¥12 billion	¥6.2 billion
ROE in Fiscal 2026	Above 15%	15%
		END

1. Business profit = Operating income + Equity in earnings of affiliates + Goodwill amortization (consolidated subsidiaries/equity method affiliates)

Translated from the Japanese original

S e c o n d M e d i u m - Te r m M a n a g e m e n t P l a n

Fiscal 2022-Fiscal 2026

September 9, 2021

Copyright (C) 2021 CRE, Inc. All rights reserved

Looking Back on First Medium-Term Management Plan (Fiscal 2019-Fiscal 2021)

Each business segment posted steady growth and contributed to higher earnings,

leading to achievement of income target.

	Target	Actual

Net sales	¥60 billion	¥47.5 billion	21% below
(fiscal 2021)			target

Operating income	¥5 billion	¥5.7 billion	14% above
(fiscal 2021)	target

Average ROE	Above 10%	11%	Achieved

Copyright (C) 2021 CRE, Inc. All rights reserved

1

Progress on Strategies to Fuel First Medium-Term Management Plan (Fiscal 2019-Fiscal 2021) and New Businesses

			Real estate management business		Logistics investment business		Asset management business
			• Maintain existing earnings base, then drive results		Strengthen ability to purchase development sites		• Expand AUM
			higher
				• Expand investment areas
			• Promote reconstruction of master leasing properties			• Cultivate investor base
	Strategies			• Medium- and long-term development of sites
		• Expand business associated with property manage			• Put together self-storage funds
				• Joint development
			ment			• Put together small warehouse funds
				• Soil contaminated sites
			• Further strengthen leasing capabilities
					• Expanded investment areas: LogiSquare Kobe Nishi,
					LogiSquare Osaka Katano, LogiSquare Itami,		• ¥112.3 billion in assets under management at CRE
					LogiSquare Fukuoka Ogori
			• Brought LogiCom, Inc. under consolidation			Logistics REIT
				• Progress on medium- to long-term site development:
	Implementation		in December 2018			• Put together small- and medium-sized warehouse
			LogiSquare Fujimino A - C
			→ Absorbed LogiCom, Inc. in August 2020			funds in April 2019
				• Took measures at soil contaminated sites:
						• Initiated crowd-funding through CRE Funding
					LogiSquare Shiroi and LogiSquare Hirakata
					Overseas business (new domains)
	Strategies	• Promote leasing and development business for logistics facilities in VSIP Hai Phong Integrated Township and Industrial Park in Vietnam.
	• Promote self-storage business and investment in real estate-related business in Thailand.
Implementation	• Started construction on VSIP Hai Phong Warehouse III in August 2019 → Completed in April 2020
• Established representative office, PT. CRE BIL INDONESIA, in Indonesia, in May 2021.

＋

New business (new domains)

Strategies	• Expand presence as company with logistics infrastructure platform.
• Build network with shipping and logistics companies.

• Turned HAPILOGI, INC. into wholly owned subsidiary in June 2020, turned APT Corporation into consolidated subsidiary in July 2021,
  Implementation formed capital and business alliance with A-TRUCK Co., Ltd., in September 2019, and established Warehouse Staffing Center, Inc., in July 2019.
• Signed partnership agreement with Sankyu Inc., in March 2021.

Copyright (C) 2021 CRE, Inc. All rights reserved

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Business Vision

No.1 corporate group with Logistics Infrastructure Platform that connects people

and things of our world

Copyright (C) 2021 CRE, Inc. All rights reserved

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