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Sekisui House

Slate Directives

1. Install a board comprised of 7 outside members and 4 inside members


2. Investigate the improper action through the audit committee

a. Confirm no others have happened

b. Create safeguards against any such transactions happening again


3. Establish a cyber committee of the board

a. Ensure Sekisui House (“SH”) data and personnel data are protected

b. Ensure no one from the improper transaction is on SH's system


4.  Staff the compensation committee with all outsiders

a. Examine last 2 years of executive compensation

b. Total review of executive compensation

c. Publish individual executive and board compensation


5. Rigorous review by audit committee of internal financial and operational controls

a. Bring in new accounting firm

b. Institute a modern, encrypted IT infrastructure (audit and cyber committee)


6. Hire 2 investment banks to explore:

a. Selling shares in other Japanese corporations

i. Good way to raise cash

b. Buy back, over time, SH shares owned by others

i. This will be done only if it is anti-dilutive

ii. We will not rush into a buyback, but will let our cross-shareholders know that we are buyers of our shares at the right price

c. Explore listing on the NYSE (only possible with a majority of outside directors)

i. SH needs to rebuild its US presence and raising capital there is the most efficient way to fund US expansion

ii. Also, will only be done at attractive terms vis-à-vis the domestic share price

d. Examine SH's capital structure as there are opportunities to modify it to take advantage of:

i. Global interest rates

ii. Joint ventures taking place in the global real estate industry

iii. Explore potential strategic investors that can provide capital as well as specific market  opportunities


7. Comprehensive review of SH's portfolio

a. Examine net yield of every property and proposed project

b. Look at new real estate, corporate, residential and hospitality trends


8. Work immediately to contact every employee personally and communicate these initiatives

a. We will need their buy-in if it is to be turned around


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