Daiwa House Industry : Feb. 09, 2021 Notice Concerning Outline of the Results of the Evaluation of the Effectiveness of Board of Directors

News Release (Translation)

	February 9, 2021
Company:	Daiwa House Industry Co., Ltd.
	(Code number: 1925,
	First Section of the Tokyo Stock Exchange)
Representative:	Keiichi Yoshii, President and CEO
Contact:	Yuji Yamada, Managing Executive Officer and
	General Manager, IR Department
	E-mail to: [e-mail]

Notice Concerning Outline of the Results

of the Evaluation of the Effectiveness of Board of Directors

Daiwa House Industry Co., Ltd. (hereinafter, the "Company") has carried out an evaluation of the effectiveness of the board of directors for 2020 (the period from January to December 2020). Herein we wish to present an outline of the results of this evaluation.

1. Evaluation of the Effectiveness of Board of Directors
   The Company has been carrying out an evaluation of the effectiveness of the board of directors every year since 2015, based on its "Corporate Governance Guidelines" formulated to obtain sustainable growth and better corporate value over the medium to long term.
   For the evaluation of the effectiveness of the board of directors in 2020, same as last year, we obtained the cooperation of an outside organization for the evaluation process, after which the board carried out a self-review.
2. Outline of the Results
   The Company analyzes and evaluates the board of directors as a whole by means of questionnaire- based self-evaluations by each director as well as evaluations by the audit & supervisory board and the board of directors itself.
   In 2020, as previously, the Company prepared a questionnaire with the cooperation of an outside organization. Answers were given directly to the said organization, maintaining anonymity. Based on a report on the summarized results from the outside organization, the composition of the board of directors, decision-making process, management of corporate performance, level of support provided to outside directors, and performance of duties by directors were verified. The evaluation showed that the effectiveness of the board of directors is fully satisfactory.
   Meanwhile, information was shared on challenges facing the Company, such as enhancement of corporate governance of the Group including its subsidiaries.
   The Company also affirmed the necessity for more active discussions on managerial issues to be addressed on a mid- to long-term basis.

The Company will to strive to increase the effectiveness of the board of directors and to enhance its management system in order to obtain sustainable growth and better corporate value over the medium to long term.

3. Self-review on Corporate Governance Guidelines by Board of Directors

In parallel to the board of directors' evaluation, the Company carries out a self-review each year on the operation status of the items defined in the Corporate Governance Guidelines which was formulated and disclosed on May 27, 2015. This functions as an overhaul of the management system.

In light of the self-review this time, the board of directors resolved to partially revise the text of its guidelines to further enhance diversity and the training of management personnel, from the perspective of achieving the Company's sustainable growth and better corporate value over the medium to long term.

Note: Our Corporate Governance Guidelines are available on our website at

https://www.daiwahouse.com/English/ir/governance/index.html

End

Disclaimer:

This English translation has been prepared for general reference purposes only. The Company shall not be responsible for any consequence resulting from the use of the English translation in place of the original Japanese text. In any legal matter, readers should refer to and rely upon the original Japanese text of the press release dated February 9, 2021.

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