#1ANSVAARA Lead Real Estate Co., Ltd Investor Presentation Nasdaq Ticker: LRE March 2023 Issuer Free Writing Prospectus dated March 10, 2023 Filed Pursuant to Rule 433 of the Securities Act of 1933, as amended Relating to Preliminary Prospectus dated February 28, 2023 Registration Statement No. 333-266762#2Lead Real Estate Co. Ltd Free Writing Prospectus Statement This free writing prospectus relates to the proposed public offering of American Depository Shares ("ADSs") of Lead Real Estate Co., Ltd ("LRE," "we," "us," "our" or the "Company") and should be read together with the Registration Statement we filed with the U.S. Securities and Exchange Commission (the "SEC") for the offering to which this presentation relates and may be accessed through the following web link: https://www.sec.gov/Archives/edgar/data/1888980/000110465923026820/tm227558-24_f1a.htm The Registration Statement has not yet become effective. Before you invest, you should read the prospectus in the Registration Statement (including the risk factors described therein) and other documents we have with the SEC in their entirety for more complete information about us and the offering. You may get these documents for free by visiting EDGAR on the SEC website at http://www.sec.gov. ; Alternatively, we or our underwriter will arrange to send you the prospectus if you contact Network 1 Financial Securities, Inc. via email: [email protected], or contact us via email: [email protected]. This presentation does not constitute an offer or invitation for the sale or purchase of securities or to engage in any other transaction with the Company or its affiliates. The information in this presentation is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.#3Lead Real Estate Co. Ltd Forward-Looking Statement This presentation contains forward-looking statements that reflect our current expectations and views of future events, all of which are subject to risks and uncertainties. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. You can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this presentation. These statements are likely to address our growth strategy, financial results and service and development programs. You must carefully consider any such statements and should understand that many factors could cause actual results to differ from our forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: assumptions about our future financial and operating results, including revenue, income, expenditures, cash balances, and other financial items, our ability to execute our growth strategies, including our ability to meet our goals, current and future economic and political conditions, our capital requirements and our ability to raise any additional financing which we may require, our ability to attract customers and further enhance our brand recognition, our ability to hire and retain qualified management personnel and key employees in order to enable us to develop our business, trends and competition in the real estate development industry, and other assumptions described in this presentation underlying or relating to any forward-looking statements. We describe certain material risks, uncertainties, and assumptions that could affect our business, including our financial condition and results of operations. We base our forward-looking statements on our management's beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that actual outcomes and results may, and are likely to, differ materially from what is expressed, implied or forecast by our forward-looking statements. Accordingly, you should be careful about relying on any forward-looking statements. The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this presentation. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read our prospectus and the documents that we refer to in this presentation and have filed as exhibits to the registration statement completely and with the understanding that our actual future results may be materially different from what we expect.#4Lead Real Estate Co. Ltd Offering Summary Issuer: Proposed Exchange/Symbol: Shares Offered: Offering Price: Offering Size: Anticipated Use of Proceeds: Underwriter: Pricing Date: Lead Real Estate Co. Ltd Nasdaq / LRE 1,143,000 ADSs, each representing one ordinary share $7.00 - $9.00 per ADS $8.0-10.3 million (excluding 15% over-allotment option) Domestic business expansion, development of the Glocaly platform, and general corporate purposes EF Hutton-division of Benchmark Investments, LLC. Week of March 13th, 2023#5Lead Real Estate Co. Ltd Contents LEAD-REAL ESTATE CO.,LTD. ASSET MANAGEMENT & DEVELOPMENT OF REAL ESTATE Part 1 Part 2 Part 3 Part 4 Part 5 Investment Highlights Business Overview Market Overview Growth Strategies Financial Highlights#6TERES ******* ****** 2 Investment Highlights CONFIDENTIAL - DO NOT DISTRIBUTE OR REPRODUCE THIEF#7Lead Real Estate Co. Ltd Investment Highlights "Growing Developer of Luxury Residential Properties in Japan" Growing Developer of Luxury Residential Properties Access to Land Parcels Strong Project Oversight and Execution Capabilities Experienced Management A growing real estate developer in Japan Revenue increased by approximately 218% in the past 10 years Received the Good Design Award for our Excellence Building Futako-Tamagawa issued by the Japan Institute of Design Promotion in 2020 Strategically focuses on prime locations in Tokyo and Kanagawa prefecture Acquires land parcels from private landowners through the introduction by real estate agencies Good reputation and capabilities and the business relationships built over the years while working with real estate agencies • "Lead Real" brand widely recognized in Tokyo and Kanagawa prefecture • Unlike U.S. homebuilders - LRE sells land and buildings separately. Land is collateralized by short term debt and paid back by customer (<3 months), de-risking -60% of total contract price 0 spec inventory, 0% cancellation rates, 0 litigation related to housing defects No receivables - cash received at handover, 10% down payment/deposits for condominiums Executive officers having on average over 20 years of experience in the Japanese real estate development industry and considerable strategic planning and business management expertise • Mr. Eiji Nagahara, president, chief executive officer, and representative director, having more than 25 years of relevant experience See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.#8TERES FIERDIC SINI ******* 222 Business Overview CONFIDENTIAL - DO NOT DISTRIBUTE OR REPRODUCE THIEF#9Transforming Real Estate In Japan Opening The Door For Tokyo Luxury Real Estate About Us We are a growing developer of luxury residential properties, including single- family homes and condominiums, across Tokyo and Kanagawa prefecture. In addition, we operate hotels in Tokyo and lease apartment building units to individual customers in Japan and Dallas, Texas. Business Vision LRE seeks to leverage its nationally recognized, award-winning luxury homes and its strong market position in the luxury residential property market in Tokyo and Kanagawa prefecture to create a global transaction platform allowing access to prime Japanese condominiums as well as overseas condominiums, including in the U.S. and Hong Kong. Mission Statement Serve the customers by offering stylish, safe and luxurious living, and to adopt the Kaizen (continuous improvement) approach its operations#10Lead Real Estate Co. Ltd LRE At a Glance Affordable Luxury $725k Average Sale Price Single-family home B2B Building $65 Million (Sold) $70 Million (For Sale) -$106m FY22 Revenue with Over 1000 Units Delivered* Condominiums <6 mo's delivery 90% % of home orders delivered within 6 months Tier A Lot Ownership Preferred Developer For Luxury Residential*** Focus on Azabu, Shibuya, Shinjuku & other premium locations Stable Growth 15% Profitable 17% 5-yr Revenue CAGR Gross Margins** * 1,000 single-family homes and 25 condominiums delivered since inception as of fiscal year ended June 30, 2022. Cancellation rate <1%. FX ¥135.69 / USD **Gross margin target ranges depending on sales mix (made to home units vs. investment condo towers). For past fiscal year ended June 30, 2022 ***Management opinion based off subjective factors including landowner/seller receptivity, priority given by real estate agencies and competitive dynamics See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.#11Lead Real Estate Co. Ltd Core Operations n Å E Single-Family Homes (B2C) • Delivered 1000+ single-family homes in prime areas across Tokyo and Kanagawa since inception Sales prices range from $500,000USD to $1,000,000USD+ • Land and building sold separately, easing working capital commitments Condominiums (B2B) • Delivered 25+ condominiums since inception • Target institutional buyers seeking yield, sales prices range from USD5 m - USD12 m+ Platform Brokering (Glocaly) • Tech platform allowing "click to buy" access to investment condo towers for investors globally • Interactive media platform with 100+ languages supported and Al Translation & Chatbot functionality • Aiming for full transactional capabilities (eKYC, documentation, agent and bank loans) Asset Management/ Stabilized Properties • 5 hotels owned and operated Leased 77 units across 17 apartment buildings during the past fiscal year in Japan and the U.S. • Collect building management and property management fees See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results. All marks are trademarks or registered trademarks of their respective owners. The display of trademarks herein does not imply that a license of any kind has been granted. GOOD DESIGN AWARD 2020#12Lead Real Estate Co. Ltd Development Process Opportunity Identification and Land Acquisition . Introduction by real estate agencies Identification of land parcels Identification of customers ▪ Financing Land acquisitions. Project Planning and Design ▪ Outsourced design ▪ Budgeting Financial analysis and projections Marketing and Sales ▪ Marketing through real estate agencies ■ Contracts with customers Project Construction and Management ▪ Outsourced construction work . Construction supervision ▪ Quality control . Complete inspection After-Sale Services and Delivery ▪ Delivery ▪ Registration assistance#13Lead Real Estate Co. Ltd Single-Family Homes Project / Order Type Number of projects at the beginning of the period New Orders added during the period Delivered projects (1) Number of Projects at the end of the period Average sale price for delivered projects during the period (Including Land) JPY (1) Delivered projects refer to projects for which both the land and parcels have been delivered. For the fiscal year ended June 30, 2022 79 66 81 64 98,753 For the fiscal year ended June 30, 2021 55 74 50 79 99,596 See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.#14Lead Real Estate Co. Ltd Condominiums Project / Order Type Number of projects at the beginning of the period New Orders added during the period Delivered projects (1) Number of Projects at the end of the period Average sale price for delivered projects during the period (Including Land) JPY (1) Delivered projects refer to projects for which both the land and parcels have been delivered. For the fiscal year ended June 30, 2022 2 10 20 9 3 470,957 For the fiscal year ended June 30, 2021 1 5 4 2 395,911 See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.#15Lead Real Estate Co. Ltd Hotels Name ENT TERRACE Komagome ENT TERRACE Horikiri Shobuen ENT TERRACE Shinagawa Higashi-oi ENT TERRACE Omori Sanno Kosher Hotel ENT TERRACE Asakusa Building Type Location Toshima City, Tokyo Katsushika City, Tokyo Shinagawa City, Three-story Tokyo Ota City, Tokyo Taito City, Tokyo Villa Villa appartment building Detached house Eight-story apartment building Opened Aug-19 Mar-20 Oct-20 Jun-21 Oct-22 Maximum Capacity 11 6 12 7 48 Starting Room Rate (Per Night) $288 $77 $62 per floor $329 $153 per floor#16Lead Real Estate Co. Ltd U.S. Property 4804 Mannet St., Dallas, Texas#17Lead Real Estate Co. Ltd GLOCALY Platform Aiming to Disrupt Real Estate Transactions Traditional Search & comparison: Slow, partial site with pictures, physical visits required for views of property Contracting: Face to face, heavy paperwork and procedures Support: Limited language, limited hours Transactional Capability: None Property Information Members only Blog G GLOCALY GGLOCALY Contact Single building EXCELLENCE BUILDING FUTAKO- TAMAGAWA Property value 992,800,000 JPY Futakotamagawa, a town that is highly popular for both stores and residences through redevelopment. ●State-of-the-art building with nuclear shelter as standard on the first basement floor. Management by our group company. 5-minutes walk from Futakotamagawa Station on the Tokyu Denentoshi Line and Oimachi Line, excellent location near the 2-line station. Remove from Favorites Lead AlTalk Contact GLOCALY Search & comparison: Live pricing, interactive media portal including videos / 360 views of unit. Detailed info available through portal (yield, surrounding schools, convenience stores, subway) Contracting: eKYC, Sales/Purchase Agreement, Disclosure, Deed Transfer done on site Support: Chatbot Al and onsite staff 24/7 Transactional Capability: Buy/Sell Directly from Platform#18Lead Real Estate Co. Ltd Unlocking Prime Japanese Real Estate Buy, Sell, Invest In Japan | Seamlessly Around the World This site provides services exclusively for members. We regularly post content that helps support our customers' asset management. Such as property information limited to members and information related to real estate investment. If you have already registered as a member, please log in. If you have not yet registered, please proceed to new member registration. Access GLOCALY Click here for new member registration (free) WONO 9 2-154-11/15/16/17/18/19 Tamagawa, Setagaya-ku, Tokyo Terms Live Futako-Tanagawa Station 5 minute- STAR Member log in Email address [email protected] Login password BES **** ADARS IT# Login Lead AlTalk MOOBCOVIDED RUPAN Ah oh TEL The following explanations will be provided with respect to the following real estate properties in accordance with the provisions of Article 35 and Article 35-2 of the Building Lats and Buildings Transaction Business Law This is important and should be fully understood This document contains information that has been printed in advance, and of these items the content of the description marked within the box at the head of the description is an explanation that applies to the following real estate Column with no mark or explanations delsted by line indicates that they are not relevant Location of Sixth floor, Shibuya Minam Hradel Building MFPR 16-11 Mani-Hrader cho Shibuy- 03-5794-5125- Trade name or RealVision he Explanation of Important Matters [Lease of Housing Buildings] Name of Ei Nagahara Dear Sir License Governor of Tokyo 3 No 80001 Date of Heise 28 Year 10 Month 14 Day License Name Jun Kagami Registratio Tokyo ) No RealVision Inc. 173787 TEL Trade name License Date of License Reiwa Year Month Day Registration Governor Year Month Day B 2 Ite ファイル テキスト翻訳 | ご入力いただいたテキストを翻訳できます。 Real estate English A tiny comer is all you need for a small and functional coffee station. With a little table or a dresser and some shelving above, you'll have plenty of storage space for everything Take a look at these two lovely exam gles below from La Vie LC. Cheese (Simped) 有了一些小桌子或拉丝,上面(有一張狗版,可在有效师的符认主 La Vie LOURES#19Lead Real Estate Co. Ltd Experienced Management Mr. Eiji Nagahara President, Chief Executive Officer, and Representative Director Founder and President since November 2003 and CEO since March 2001 Worked at multiple real estate companies, including FEC Co., Mibu Co. and Uptown Co. • Certified International Property Specialist . . . . Chief Financial Officer since January 2021 • Managing Director and CFO of Japan Card Products Co., Financial Planning and Analysis Manager of Starbucks Coffee Japan, Chief Accountant of Fujita Corporation Co., Chief Consultant of Chuo Sogo Business Consulting Co., and as the Accounting Manager of A.l Global Sun Partners Co. Mr. Daisuke Takahashi Chief Financial Officer . Passed all four sections of the Uniform CPA Examination Bachelor's degree of Marine Science from Hokkaido University Masahiro Maki Independent Director and Audit and Supervisory Committee Member Independent Director as well as Audit and Supervisory Committee member Audit and Supervisory Committee Hiroyuki Saito Independent Director and Audit and Supervisory Committee Member Prior, Mr. Maki worked at Keiyo Co., Chibagin Business Service Co., and Chiba Bank Bachelor of Economics degree from Chuo University . . . . . . . Mr. Takahashi Nihei Director and General manager of Development Division Director since July 2021 and General Manager of development division since February 2006 Prior, Mr. Nihei worked at I-Deal Co., Kyowajyuhan Co., and La-table Diploma in Management Business from Tokyo Shoko Gakuin Technical College Independent Director as well as Audit and Supervisory Committee member Established Saito Certified Public Accountant Office in March 2006 and established Mitsuba Audit Corporation in March 2021 Mr. Saito worked for Ernst & Young ShinNihon, Ginga Audit Corporation as a senior partner, Minamiaoyama and Audit Corporation as a senior partner Bachelor of Business Administration degree from Aoyama Gakuin University and Certified Public Accountant in Japan Mr. Hidekazu Hamagishi Director and General Manager of Accounting Department Director since July 2021 and General Manager of Accounting since July 2012 Prior, Mr. Hamagishi worked at Aisei Drug Co., Ibis Consulting Co., First Management Service Co., SME Guarantee Organization Co., Kasuga Publishing Co., and as the chief accountant of S-net Co., Human Design Limited Company, Mr. Hamagishi also worked at Nissan Satio Saitama Co. Bachelor of Law degree from Daito Bunka University Ryoma lida Independent Director and Audit and Supervisory Committee Member Independent Director as well as Audit and Supervisory Committee member Mr. lida established Allegro Law Office, worked as a Legal Affairs Specialist for the Kobe City Board of Education, he worked for Umegae Chuo Legal Profession Corporation Juris Doctor degree from Osaka University Law School#20TERES Market Overview CONFIDENTIAL - DO NOT DISTRIBUTE OR REPRODUCE THIEF#21Lead Real Estate Co. Ltd Luxury Residential Market in Tokyo According to research by Savills Research published in March 2022 demand for Tokyo luxury residential remained strong, with luxury condos in particular being attractive for investors¹. The following factors drove continued strength in the Tokyo luxury residential market in 2020: Japan remained among the top three countries for ultra-high net worth individuals;' Tokyo ranked number three (behind New York and Hong Kong) for cities with the most ultra-high net worth individuals; Limited supply, particularly in the prestigious areas within the Minato ward, continued to drive higher pricing; and • Japan's rich culture, rule of law, exceptional customer services, and overall safety and quality of life continued to pull in investor demand. (1) https://pdf.savills.asia/asia-pacific-research/japan-research/japan-residential/jp-ultra-luxury-residential-spotlight-03-2022.pdf#22TERES Growth Strategies CONFIDENTIAL - DO NOT DISTRIBUTE OR REPRODUCE THIEF#23Lead Real Estate Co. Ltd Growth Strategies Kanto Region Focus Central and Southern Tokyo [Kanto Region] ▪ Leveraging strong brand and relationships Expand Overseas ▪ Dallas development and opportunistic US cities Southeast Asia partnerships ▪ Integrate through GLOCALY platform GRELATED Sage Leverage Local Agencies ▪ Local real estate agencies identify land and development sites ▪ Strengthen existing, develop new channels GLOCALY Grow GLOCALY Multilingual interactive platform ▪ B2B investment focus eKYC, online contracting and legal documentation#24TERES Financial Highlights CONFIDENTIAL - DO NOT DISTRIBUTE OR REPRODUCE THIEF#25Lead Real Estate Co. Ltd Financial Highlights Revenue ($ millions) Operating Income ($ millions) $150 $100 $50 $6 $0 $4 $2 $0 Steady Revenue Growth $64 2020 $1 $83 Profitability Through 2020 2021 Fiscal Year Ended June 30 Revenue Pandemic $3 2021 Fiscal year Ended June 30 $106 2022 $5 2022 105 100 95 90 15 10 5 0 Single-Family Home Land Deliveries 94 102 2022-06-30 2021-06-30 Land deliveries (Homes) - Units Land deliveries (Homes) - Average Sales price ($) Condominium Land Deliveries 12 6/30/2022 $580,000 $570,000 $560,000 $550,000 $540,000 6/30/2021 $3,000,000 10 $2,000,000 $1,000,000 Land deliveries (Condos) - Units Land deliveries (Condos) - Average Sales price ($) 5 100 50 Single-Family Home Building Deliveries 81 6/30/2022 50 6/30/2021 Home Vertical deliveries - Units Home vertical deliveries- Average Sales price ($) Condominium Building Deliveries 6/30/2021 $180,000 $170,000 $160,000 $150,000 $1,500,000 $1,000,000 $500,000 6/30/2022 For Sale Condo - Units For Sale Condo - Average Sales price ($) Operating Income See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.#26Lead Real Estate Co. Ltd Contacts R EFHutton Issuer: Lead Real Estate Co., Ltd Email: [email protected] Underwriter: EF Hutton division of Benchmark Investments, LLC Email: [email protected] Address: 6F, MFPR Shibuya Nanpeidai Building 16-11 Nampeidai-cho, Shibuya-ku Tokyo, 150-0036, Japan Address: 590 Madison Avenue, 39th Floor New York, NY 10022#27Lead Real Estate Co. Ltd Exhibit - Corporate Structure Eiji Nagahara Pre-IPO%/Post-IPO% 97.8%/84.3% 100% Daisuke Takahashi Lead Real Estate HK Co. Limited Hong Kong, 2014 Hidekazu Hamagishi 100% Takashi Nihei Lead Real Estate Co., Ltd Japan, 2001 Lead Real Estate Global Co., Ltd. Texas, 2017 Masahiro Maki 100% Real Vision Co., Ltd. Japan, 2008 VIE Minority Shareholders (1) 1.5%/1.3% Public Shareholders JP Shuhan Co., Ltd.(2) Japan, 2014 0%/13.8% Lead Real Estate Cayman Limited (3) Cayman Islands, 2019 50% Sojiya Japan Co., Ltd.(4) Japan, 2020 *Indicates less than 1% Notes: all percentages reflect the equity interests held by each of our shareholders assuming no exercise of the over-allotment option. (1) Represents an aggregate of 182,607 Ordinary Shares held by 24 shareholders of Lead Real Estate Co., Ltd, each one of which holds less than 5% of our equity interests, as of the date of this prospectus. (2) Mr. Nagahara holds 100% of the equity interests in JP Shuhan Co., Ltd., a joint-stock corporation with limited liability in Japan. (3) Mr. Nagahara holds 100% of the equity interests in Lead Real Estate Cayman Limited, a company limited by shares under the laws of Cayman Islands. (4) Mr. Nagahara holds 50% of the equity interests in Sojiya Japan Co., Ltd.