Supplementary Material
Fiscal 2023
(April 1, 2023 - March 31, 2024)

【Contents】
Proactive Revision of “Management Strategy for Sustainable Growth”

3

APPENDIX to Proactive Revision of “Management Strategy for
Sustainable Growth”

14

Progress of the Ninth Management Plan (Apr 1, 2022 - Mar 31, 2025)

19

Results for Fiscal 2023 (Apr 1, 2023 – Mar 31, 2024)

21

Forecasts for Fiscal 2024 (Apr 1, 2024 – Mar 31, 2025)

22

Principal New Development Projects

23

ESG Initiatives

29

Sumitomo Realty & Development Co., Ltd.

Proactive Revision of “Management Strategy for Sustainable Growth”

1. Earnings targets
Viewing ¥300 billion in ordinary profit in the next medium-term management plan as acheckpoint, and aiming at reaching an even higher milestone of ¥400 billion
 Mainstay businesses steadily recovering and improving, expecting to achieve an ordinary
profit of ¥300 billion in the next management plan One of the largest urban redevelopment in Japan, “Roppongi 5-chome West Project” has been
approved; Acquired a large-scale mixed-use development site in the heart of Mumbai, India
Aiming for(Billion yen)¥400 billion

400
400
350

Surpassing¥300 billion

300
300

in next plan

250

COVID-19

200
200
150
100
100
50
0
FY'10

'11

5th Plan

'12

'13

'14

6th Plan

'15

'16

'17

'18

7th Plan'19'20

8th Plan

'21

'22

'23

'24
(予)
9th Plan

'25

'26

'27

10th Plan

Sumitomo Realty & Development Co., Ltd. (3)Proactive Revision of “Management Strategy for Sustainable Growth”

2. Proactive revision of management strategy, aimed at achieving
an ordinary profit of ¥300 billion(1) “Doubling the dividend two years ahead of the previous schedule,” accelerating thepace of the annual dividend increase from ¥7 to ¥10 per share With the recovery and improvement of outlook in our leasing business putting us on the clear path tosurpassing ¥300 billion in ordinary profit, we intend to further boost shareholder returns
 Achieving “¥100 per share within 7 years” two years ahead, reaching “¥100 per share for fiscal 2027”
 Expecting ¥70 per share for fiscal 2024, increasing dividend for the
11th consecutive year
2 years ahead¥100 per share

Previous target (announced in May 2023)
Double the dividend within 7 years
to ¥100 per share

Profit(Billion yen)

(FY 2027)

Dividend (Yen)

100

300

Previoustarget

70

250

90
75

60
200

Dividends

45

150
100

30

60

Increase¥10 per year

35

20

50

52

45
30

ProfitDividend increase for 11 consecutive terms

Previous target(announced in May 2023)

Increase ¥7 per year

0
FY2013

2015

2017

2019

2021

2023

2025

2027

2029

15
0

Sumitomo Realty & Development Co., Ltd. (4)Proactive Revision of “Management Strategy for Sustainable Growth”

2. Proactive revision of management strategy, aimed at achieving
an ordinary profit of ¥300 billion(2) Making progress in reducing strategic shareholdings, aiming to achieve the reduction
target of 10% or less, three years ahead of the original schedule The ratio of the book value of strategic shareholdings to shareholders’ equity has been steadilydecreasing: 14.2% at the end of fiscal 2023
 Selling shares with diminished significance for holding in a planned manner ➡ Utilizing the gains
from the sale of shares to support our sustainable growth(Billion yen)Book value of listed shares and shareholders’ equity
300

30%

Ratio
250

200

Target at the time of 9th Plan25%

(announced in May 2022)

23%

23%

Reduce to 10% or lessby FY 2030
18%

150

16%

15%

14%

100

10%
10％

FY 2027
10% or lessBook value of listed shares(Left scale)

50

20%

3 years
ahead

0

5%

0%
FY2015

6th Plan

2017
7th

2019

2021
8th

2023
9th

2025

2027
10th

2029
11th

Sumitomo Realty & Development Co., Ltd. (5)Proactive Revision of “Management Strategy for Sustainable Growth”

2. Proactive revision of management strategy, aimed at achieving
an ordinary profit of ¥300 billion(3) Not renewing advance warning takeover defense measures
Progress in“review of corporate takeover rules”

The scale of our business and profitability
have expanded and stabilized

Discussions on ensuring the fairness andtransparency of acquisition procedures

Expecting to surpass ¥300 billion in ordinary
profit in the 10th Plan, and aiming at reaching aneven higher milestone of ¥400 billion

METI: Reviewing the guidelines for takeovers• Mainstay businesses such as office buildings andcondominiums steadily recovering and improving,expecting to achieve an ordinary profit of ¥300
billion in the next Management Plan

at the “Fair Acquisition Study Group”
FSA: Reviewing the tender offer system andconsidering to tighten the large
shareholding reporting rule

• One of the largest urban redevelopment in Japan,“Roppongi 5-chome West Project” has been
approved; Acquired a large-scale mixed-use
development site in the heart of Mumbai, India

June 2025
Not renewing“Advance warning takeover defense measures”
Sumitomo Realty & Development Co., Ltd. (6)Proactive Revision of “Management Strategy for Sustainable Growth”

2. Proactive revision of management strategy, aimed at achieving
an ordinary profit of ¥300 billion(4) Continuing active investment in human capital Aiming for “employee-first management,” as well as “integrated groupmanagement”
 A salary system that is similar to a role-based system, where annual salaries are
determined based on the responsibilities and achievements of employees 90% of our employees and 60% of the managerial personnel are individuals who
were hired through mid-career hiring with high motivation
 A highly diverse workforce is a driving force for the growth of the GroupIn addition to the evaluation system based on
ability and achievement of individual employees,
we will continue to actively invest in human capital,
including investments in digital transformation (DX) and education,
to enhance productivity.
Sumitomo Realty & Development Co., Ltd. (7)Proactive Revision of “Management Strategy for Sustainable Growth”

2. Proactive revision of management strategy, aimed at achieving
an ordinary profit of ¥300 billion(5) Doubling the amount of funds for Green Financing from a total of ¥1 trillion to¥2 trillion
 78 of our buildings with a total gross floor area of over 1.1 million tsubo (*1 tsubo ≈ 3.3 sqm)
acquiring the “DBJ Green Building Certification”
 Doubling the financing quota to ¥2 trillion due to its popularity and the rapid
approach to the quota
 Continuing to develop superior properties with environmental considerations andstriving to maintain and enhance their performance◆ Third-party environmental recognitions for leasing assets (acquisition of DBJ Green Building
Certification) The constant “environmental and social awareness” of our properties was highly recognized
Properties that have acquired ★5* DBJ Green Building Certification isa certification system established by
the Development Bank of Japan toevaluate real estate for its
performance and initiatives regarding“environmental and social
awareness” beyond its “profitability.”

Shinjuku Grand Tower

Osaki Garden Tower

Shinjuku Garden Tower

Tokyo Nihombashi Tower

Azabujuban Building

Roppongi Grand Tower

Ariake Garden

Sumitomo Realty & Development Co., Ltd. (8)Proactive Revision of “Management Strategy for Sustainable Growth”

3. Viewing ¥300 billion as a checkpoint, and aiming at reaching an evenhigher milestone of ¥400 billion
Tokyo

Mumbai, India- Primary Growth Engine -- Second Growth Engine -Roppongi 5-chome, Yaesu,
Tsukiji (Ginza East), Roppongi 3chome, Ikebukuro, and Iidabashi
Gross floor area: 2 million sqm
Investment amount: ¥2 trillion

2 projects in BKC
A project in Worli
Gross floor area: 1.3 million sqm
Investment amount: ¥700 billion

Growth and development projects with a total investment of ¥2.7
trillion for a total gross floor area of over 3.3 million sqm
across Tokyo and Mumbai

Achieving an ordinary profit of¥400 billion
Sumitomo Realty & Development Co., Ltd. (9)Proactive Revision of “Management Strategy for Sustainable Growth”

3. Viewing ¥300 billion as a checkpoint, and aiming at reaching an evenhigher milestone of ¥400 billion
Topic 1: One of the largest urban redevelopment in Japan, “Roppongi 5-chomeWest Project” has been approved One of Japan’s largest redevelopment projects with a total gross floor area of
1.08 million sqm (an overall project cost of around ¥800 billion) A core office-focused tower of 66 floors above ground and a height of 327
meters with a gross floor area of 800,000 sqm
 With approximately 1,000 residential units, hotels, and retail facilities

Source: Tokyo Metropolitan Government documents* Urban redevelopment project jointly undertaken with Mori Building Co., Ltd.

Sumitomo Realty & Development Co., Ltd. (10)Proactive Revision of “Management Strategy for Sustainable Growth”

3. Viewing ¥300 billion as a checkpoint, and aiming at reaching an evenhigher milestone of ¥400 billion
Topic 2: Acquired a large-scale mixed-use development site in the heart of Mumbai, India
 Acquired a large-scale mixed-use development site in Worli, with a developable gross floor area ofover 1 million sqm, in addition to two properties in BKC
 Building a significant foothold in establishing our position as a comprehensive developer
continuously engaged in integrated mixed-use development of areas

Project
site

Central area of Worli

Project 1 in BKC(Acquired in Jul 2019)

Location
Site acquisition value(Yen equivalent)*1
Type of ownership
Site area
Building scale*2
Use*1 1 INR = 1.7 JPY

Bandra East, Mumbai, Maharashtra State
22.38 billion INR
20.67 billion INR(38.0 billion JPY)
(35.1 billion JPY)
Leasehold for 80 years
Leasehold for 80 years
12,486 sqm
11,885 sqm(Approx. 3,780 tsubo)(Approx. 3,595 tsubo)
Approx. 130,000 sqm
Approx. 130,000 sqm(Approx. 40,000 tsubo)(Approx. 40,000 tsubo)
Office building for lease*2 Gross floor area

Project 2 in BKC(Acquired in Nov 2022)

Project in Worli(Acquired in Oct 2023)

Worli, Mumbai
46.7 billion INR(79.5 billion JPY)
Freehold
80,903 sqm(Approx. 24,473 tsubo)
Over 1 million sqm(Over 300,000 tsubo)
Super high-rise mixed-use
Office building for leasedevelopment project
Sumitomo Realty & Development Co., Ltd. (11)Proactive Revision of “Management Strategy for Sustainable Growth”

3. Viewing ¥300 billion as a checkpoint, and aiming at reaching an evenhigher milestone of ¥400 billion
Topic 2: Acquired a large-scale mixed-use development site in the heart of Mumbai, India
 In Mumbai, efforts are underway to enhance infrastructure, and the city’s development
is expected to further progress“Indian Shinkansen”(high-speed railway)
Connecting Mumbai and
Ahmedabad in about 2 hours,
covering approximately 500 km
distance
Mumbai Trans Harbour Link
Connecting the center of Mumbai
to the new airport underconstruction in Navi Mumbai
across the eastern shore, with a
total extension of about 22 km(opened in January 2024)
Sea Bridge Bypass“Coastal Road”
A sea bridge bypass where
extension work is progressing on
the western coast of the peninsula
to avoid traffic congestionin the city
(partially opened in March 2024)

Project 1 in BKC
Exterior rendering

Metro Line 3
Connecting major business areasfrom the current airport area toNariman Point via BKC and Worli(scheduled to open in 2024)

Project site

Central area of WorliSumitomo Realty & Development Co., Ltd. (12)Proactive Revision of “Management Strategy for Sustainable Growth”

3. Viewing ¥300 billion as a checkpoint, and aiming at reaching an evenhigher milestone of ¥400 billion
Topic 3: Reborn Shinjuku Sumitomo Building completed in 1974, celebrating its 50th
anniversary
 Complete update of building facilities and enhancement of seismic resistance through"renovation" instead of rebuilding “Sankaku Hiroba” (triangular plaza), an all-weather large scale event space Our flagship building with the cumulative cash flow over the past 50 years exceeding ¥400 billion,
generating over ¥10 billion annual cash flows from leasing
Shinjuku Sumitomo Building (52 floors above / 4 below ground)
Completion： March 1974
Site area： 14,446.46 sqm
Renovation： June 2020
Gross floor area ： 180,195.16 sqm
Sankaku Hiroba： Approx. 3,250 sqm• An all-weather atrium (Ceiling height: approx. 25 meters)• Capable of temporarily accommodating approx. 2,800 stranded
commuters in the event of disaster

Sankaku Hiroba

Sumitomo Realty & Development Co., Ltd. (13)

APPENDIX to Proactive Revision of “Management Strategy for Sustainable Growth”

The office building leasing business in central Tokyo has generated
stable profits over the long term, and retaining those properties isalso advantageous in terms of investment efficiency.
1.

Efficient and intricate network of public infrastructure and a constant supply of large-scale
redevelopment buildings with the latest specifications through a “scrap and build” process,where old buildings are demolished to make way for new constructions, have made Tokyo an
unwavering city center with its value remaining steadfast.

2.

Companies from a diverse range of industries and sizes from major corporation to startups
are concentrated and clustered in Tokyo, constantly bringing various new demands for officespace. Our leasing portfolio with buildings in various sizes throughout Tokyo is ideal toaccommodate such needs, and has been the source of stable profits over the long term.

3.

Investments in the office buildings in Tokyo stand as a business that ensures sufficientprofitability without relying on gains from selling assets.
(Shinjuku Sumitomo Building completed 50 years ago is a “goose that lays the golden eggs,”
generating cash flows from leasing exceeding ¥10 billion annually, and hastily selling it would
equate to killing such goose.)
As the potential locations suitable for business are limited in city centers and securing
opportunities to develop properties with strong business prospects is not easy, it is difficult
to “sell for a profit and then buy back at a lower price.”

4.

The advantages of the Tokyo office market

Sumitomo Realty & Development Co., Ltd. (14)

APPENDIX: 4. The Advantages of the Tokyo Office Market

1. Tokyo is the world’s largest office market(1) Largest market in the world; larger than New York and London(2) 20% of existing stock do not meet the current seismic standards, and net annual supply
increase is approx. 1% due to redevelopment through rebuilding being the primary approach

Sumitomo Realty & Development Co., Ltd. (15)

APPENDIX: 4. The Advantages of the Tokyo Office Market

2. Structural factors of demand growth(1) A market unparalleled in the world, where large corporations concentrate,encompassing all industries(2) Concentration of start-up companies

Sumitomo Realty & Development Co., Ltd. (16)

APPENDIX: 4. The Advantages of the Tokyo Office Market

2. Structural factors of demand growth(3) Unwavering city center with extensive urban transportation infrastructure(4) Structural and continuous population influx

Sumitomo Realty & Development Co., Ltd. (17)

APPENDIX: 4. The Advantages of the Tokyo Office Market

3. The advantages of the Tokyo offices have become even more
pronounced after the COVID-19 pandemic(1) During the pandemic, the vacancy rate rose to 6% primarily due to cost containment,
but supply and demand balanced out within six months(2) Contrasts between the U.S. and Japan in the trend of returning to the office after the
pandemic

Sumitomo Realty & Development Co., Ltd. (18)Progress of the Ninth Management Plan (Apr 1, 2022 - Mar 31, 2025)

Progress of the Ninth Management Plan (Apr 1, 2022 – Mar 31, 2025)
Expecting to achieve a record high for both revenue and profit
8th Plan

9th Plan(Three-year
cumulative
totals)

Revenue fromOperations(Billion yen)

FY '22

FY '23

FY '24(Results)(Results)(Forecasts)(Three-year
cumulative
totals)9th Plan*1
Targets

Vs.
8th Plan(Cumulative
totals)

2,870

940

968

1,000

2,908

+37

3,000

Operating
Income

687

241

255

267

763

+75

770

Ordinary Profit

656

237

253

265

755

+99

750

Profit

433

162

177

190

529

+96

500

≪Reference≫ Results of the Past Management Plans(Billion yen)*2

1st Plan

2nd Plan

3rd Plan

4th Plan

5th Plan

6th Plan

7th Plan

8th Plan

FY1998-2000

FY2001-2003

FY2004-2006

FY2007-2009

FY2010-2012

FY2013-2015

FY2016-2018

FY2019-2021

1,270

1,606

1,939

2,107

2,170

2,442

2,886

2,870

Operating
Income

202

265

349

435

437

501

613

687

Ordinary
Profit

87

170

274

339

329

418

558

656

Profit

8

34

98

162

164

238

353

433

(Three-year cumulative totals)

Revenue fromOperations*1. Announced on May 12, 2022.
*2. The 1st plan began in the March1998 fiscal year and spanned four years. Figures shown represent cumulative totals for the final three years of the plan.

Sumitomo Realty & Development Co., Ltd. (19)Progress of the Ninth Management Plan (Apr 1, 2022 - Mar 31, 2025)

Progress of the Ninth Management Plan by Segment(Billion yen)(Three-year cumulative totals)

8th Plan
Results

9th Plan
Forecasts*1

Increase/
Decrease

9th Plan
Targets*2

Increase/
Decrease

Leasing

1,219

1,335

+116

1,300

+35

Sales

822

703

(119)

750

(47)

Construction

612

634

+22

700

(66)

Brokerage

210

222

+12

250

(28)

2,870

2,908

+37

3,000

(92)

Leasing

487

529

+42

520

+9

Sales

151

169

+18

150

+19

Construction

55

65

+11

75

(10)

Brokerage

44

61

+17

68

(7)

Operating Income

687

763

+75

770

(7)

Ordinary Profit

656

755

+99

750

+5

Profit

433

529

+96

500

+29

Revenue from Operations*1. Cumulative total of FY2022 (Results), FY 2023 (Results) and FY2024 (Forecast)*2. Announced on May 12, 2022

Sumitomo Realty & Development Co., Ltd. (20)Results for Fiscal 2023

Results for Fiscal 2023 (Apr 1, 2023 – March 31, 2024)(Billion yen)

FY '22

FY '23Results

Results

FY '23
Increase/
Decrease

Previously
Announced
Forecasts

Achieved

Leasing

425

444

+19

445

(1)

Sales

222

241

+19

225

+16

Construction

214

205

(9)

220

(15)

Brokerage

75

72

(3)

77

(5)

940

968

+28

970

(2)

Leasing

166

177

+11

172

+5

Sales

54

60

+6

54

+6

Construction

21

21

(1)

23

(2)

Brokerage

20

19

(1)

22

(3)

Operating Income

241

255

+13

255

(0)

(5)

(2)

+3

(5)

+3

Ordinary Profit

237

253

+16

250

+3

Profit Attributable to
Owners of Parent

162

177

+15

175

+2

Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd. (21)Forecasts for Fiscal 2024

Forecasts for Fiscal 2024 (Apr 1, 2024 – Mar 31, 2025)(Billion yen)

FY '22

FY '23

FY '24

Results

Results

Forecasts

Increase/
Decrease

Leasing

425

444

465

+21

Sales

222

241

240

(1)

Construction

214

205

215

+10

Brokerage

75

72

75

+3

940

968

1,000

+32

Leasing

166

177

187

+10

Sales

54

60

55

(5)

Construction

21

21

23

+2

Brokerage

20

19

22

+3

Operating Income

241

255

267

+12

(5)

(2)

(2)

(0)

Ordinary Profit

237

253

265

+12

Profit Attributable to
Owners of Parent

162

177

190

+13

Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd. (22)Principal New Development Projects

Principal New Office Building Projects
Project Name

Location(Tokyo)Gross Floor
Area (Tsubo*1)

Completion(Expected)

Sumitomo Fudosan Nakano Ekimae Building

Nakano Ward

26,200Completed in Feb 2024

Sumitomo Fudosan Shinjuku Minamiguchi Building

Shibuya Ward

7,200

Completed in Mar 2024

Sumitomo Fudosan Akihabara Higashi Building

Taito Ward

3,000

Completed in Mar 2024

Sumitomo Fudosan Roppongi Central Tower

Minato Ward

9,700

Jan 2025

Sumitomo Fudosan Osaki Twin Building West

Shinagawa Ward

8,800

Apr 2025

Sumitomo Fudosan Shibakoen Project

Minato Ward

12,000Aug 2025

Ikebukuro Higashiguchi Project

Toshima Ward

47,300*2

During or after 10th Plan
(under development)

Yaesu 2-chome Central Project

Chuo Ward

117,500*2

Same as above

Yaesu 2-chome South Project

Chuo Ward

39,900*2Same as above

Iidabashi Ekimae Project

Chiyoda Ward

14,100*2Same as above

Roppongi 5-chome West Project

Minato Ward

327,000*2

Same as above*1 1 tsubo ≈ 3.3 sqm*2 Total gross floor area including areas owned by third parties outside our group.

Sumitomo Realty & Development Co., Ltd. (23)Principal New Development Projects

Principal New Office Building Projects

Sumitomo Fudosan Nakano Ekimae Building(Nakano 2-chome Project)*1 1 tsubo ≈ 3.3 sqm

Sumitomo Fudosan Shinjuku Minamiguchi
Building (Shinjuku Minamiguchi Project)

Location

Nakano Ward,Tokyo

Gross Floor
Area

26,200 tsubo

Location

Shibuya Ward,Tokyo

Gross Floor
Area

7,200 tsubo

Completion

Feb 2024

No. of Floor

20 above ground/2 below ground

Completion

Mar 2024

No. of Floor

17 above ground/
1 below ground

Sumitomo Realty & Development Co., Ltd. (24)Principal New Development Projects

Principal New Office Building Projects

Sumitomo Fudosan Akihabara Higashi Building*1 1 tsubo ≈ 3.3 sqm

Sumitomo Fudosan Roppongi Central Tower

Location

Taito Ward, Tokyo

Gross Floor
Area

3,000 tsubo

Location

Minato Ward, Tokyo

Gross Floor
Area

9,700 tsubo

Completion

Mar 2024

No. of Floor

9 above ground

Completion

Jan 2025 (Expected)

No. of Floor

21 above ground

Sumitomo Realty & Development Co., Ltd. (25)Principal New Development Projects

Principal New Office Building Projects

Sumitomo Fudosan Osaki Twin Building West*1 1 tsubo ≈ 3.3 sqm

Sumitomo Fudosan Shibakoen Project

Location

Shinagawa Ward,Tokyo

Gross Floor
Area

8,800 tsubo

Location

Minato Ward, Tokyo

Gross Floor
Area

12,000 tsubo

Completion

Apr 2025(Expected)

No. of Floor

14 above ground/
1 below ground

Completion

Aug 2025(Expected)

No. of Floor

21 above ground/2 below ground

Sumitomo Realty & Development Co., Ltd. (26)Principal New Development Projects

Principal Condominium Projects (Scheduled Delivery in FY2024)

City Terrace Zenpukujikoen

City Terrace Fuchu

City House Yokohama

Nerima Ward, Tokyo

Fuchu

Yokohama

170 units

122 units

165 units

4 above ground

19 above ground18 above ground

City House Nishiyokohama

Bay City Towers Kobe

City Terrace Wakaeiwata

Yokohama

Kobe

Higashiosaka

104 units

WEST: 346 units, EAST: 344 units

436 units

7 above ground27 above ground / 1 below ground(Both WEST and EAST)

12 above ground* Units = No. of units for sale

Sumitomo Realty & Development Co., Ltd. (27)Principal New Development Projects

Principal Condominium Projects (Scheduled Delivery During or After FY2025)

City Tower Toranomon

Grand City Tower Ikebukuro

Grand City Tower Tsukishima

Minato Ward, Tokyo

Toshima Ward, Tokyo

Chuo Ward, Tokyo

142 units

773 units

945 units

28 above ground / 1 below ground

52 above ground / 2 below ground

58 above ground / 2 below ground

City Tower Senjuohashi

City Towers Itabashi Oyama

City Tower Ayase

Adachi Ward, Tokyo

Itabashi Ward, Tokyo

Adachi Ward, Tokyo

462 units

NORTH: 88 units, SOUTH: 185 units

422 units

42 above ground

NORTH: 25 above ground / 2 below ground
SOUTH: 26 above ground / 1 below ground

32 above ground / 1 below ground* Units = No. of units for sale

Sumitomo Realty & Development Co., Ltd. (28)

ESG Initiatives

The Progress in Promoting Decarbonization in the Ninth Plan
Making favorable progress toward the numerical targets in each segment
Targets in the Ninth Management Plan

FY2023

Office buildings
30% of energy consumption in tenant office spaces to be green

18%

Green Power Plan options that can be chosen by each tenant company

Condominiums
100% of condominiums to be ZEH-M Oriented designs
Standardization of high-level energy-saving plan; The contribution by the subject properties
will be in the 10th Plan onward when they will be completed

Approx. 4,900
units* Including ones underapplication

Shinchiku Sokkurisan remodeling
20% of orders to be high thermal insulation remodeling products(already introduced)
Renovation with advanced energy saving for the poor thermal insulation of existing houses

54%* 57% for the single
month of March

Custom homes
60% of orders to be ZEH homes (already standardized) * Including ZEH equivalent
Thermal insulation and energy-saving performance that exceeds the latest ZEH standards +New solar power generation service “SUMIFU × ENEKARI”

94％* 97% for the single
month of March

OthersAll of electric power used in the Group’s own offices to be green
Obtain environmental value generated by solar power through “SUMIFU × ENEKARI”* Need to achieve the equivalent of approx. 4,000 units of custom homes and Shinchiku Sokkurisan remodeling with “SUMIFU × ENEKARI”

Secured thenecessary quantity* Based on orders received

Sumitomo Realty & Development Co., Ltd. (29)

ESG Initiatives

List of ESG Initiatives (FY2023)
Date(Released)E

May 2023

S●● ●Jun 2023

G

ESG Initiatives
Growth Toranomon, an incubation office designed to strengthen the startup ecosystem, achieved full occupancy and floor
space extension has been decided
Shinchiku Sokkurisan joint research with The University of Tokyo and Musashino University verified the adoption of ZEH(Net Zero Energy House) and achievement of life cycle carbon neutrality through renovations● Increased the number of outside directors (increased to three, including one female outside director)
Jul 2023● ●Aug 2023●

Sep 2023●● ●Oct 2023●
Nov 2023●

Dec 2023● ● Selected as a constituent of MSCI Japan Empowering Women (WIN) Select Index● ●Jan 2024●●
Mar 2024

Started an experimental project with Suntory Holdings Group for PET bottle horizontal recycling to examine the consumer
behavioral changes using an original recycling box
Conducted joint drill for accommodating stranded commuters at Sumitomo Fudosan Tokyo Mita Garden Tower in a publicprivate partnership with Minato Ward
Conducted a visiting lecture on SDGs, “Building a Disaster-Resilient Urban Development” at Hachinari Elementary School(Suginami Ward, Tokyo)
Received “Award of Excellence” in CTBUH Awards 2023 / Structure Category for Umeda Garden, a super high-rise
mixed-use tower
Received certification from the Ministry of the Environment, recognizing Sumitomo Realty Forest (Susono, Shizuoka) as a“Nature Coexistence Sites”
Received special award from Minato Ward as part of the “Minato Model Carbon Dioxide Fixation Certification System” forinstalling furniture made from domestic timber in a shared lounge of Sumitomo Fudosan Tokyo Mita Garden Tower●

Received the 2023 Nikkei Excellent Products and Services Award for our Shinchiku Sokkurisan remodeling’s high thermal
insulation plan
Launched “Grade 7 Insulation House” -the highest thermal insulation grade house- that offers custom homes with highgrade insulation and excellent design
Recognized as a 2024 Certified Health & Productivity Management Outstanding Organization under the large enterprise
category
Established a supply chain for aluminum can horizontal recycling consisting of three industry-leading companies: UACJ
Corporation, Toyo Seikan Group Holdings, Ltd., and Sumitomo Realty & Development Co., Ltd.

● ● ● Promoted to “Prime Status” in ISS ESG corporate rating
Most of the above initiatives have been announced through news releases.

Sumitomo Realty & Development Co., Ltd. (30)

ESG Initiatives

ESG Topics
Received the Nikkei Excellent Products andServices Award for our Shinchiku Sokkurisan
remodeling’s high thermal insulation plan

Launched “Grade 7 Insulation House”-the highest thermal insulation grade house-,custom homes with insulation and design

The “high thermal insulation plan,” which improvesenergy-saving performance to such that is comparable
to newly built houses, received an award from the
Nikkei Inc., under a scheme that recognizes
particularly outstanding new products and services.
As there are approximately 40 million existing houses
that have low energy-saving
performance in Japan, we willcontribute to the promotion of
decarbonization through provisionof high thermal insulation plan.

We have launched the “Grade
7 Insulation House,” the“Grade 7 Insulation House”
highest thermal insulation
grade house suitable for awide range of areas including
cold regions, to provide both
high thermal insulation withexcellent design as a custom
home that does notcompromise living comfort.
Insulation Performance Rating Table

Shinchiku Sokkurisan joint research
verifying the adoption of ZEH through renovations
for existing detached houses

Sumitomo Realty Forest, a company-owned forest,
certified as “Nature Coexistence Sites”
by the Ministry of the Environment

In joint research with The University of Tokyo andMusashino University, we confirmed that throughrenovation, the adoption of ZEH (Net Zero Energy
House) and life cycle
carbon neutrality
were achievable, andthat life cycle carbon
neutrality could beachieved more
rapidly than throughnew construction.

Sumitomo Realty Forest, aforest owned and managed by
the Company in Susono City,
Shizuoka Prefecture, wascertified by the Ministry of theEnvironment as an area where
efforts are being made toconserve biodiversity throughprivate initiatives and otherefforts.

From Oct 2022

From Oct 2022

From Apr 2022

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Sumitomo Realty & Development Co., Ltd.
Investor Relations & ESG Section, Corporate Administration
Department[Disclaimer]
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and do not guarantee the achievement of targets and forecasts, or future performance. The actual results of theCompany's performance may differ due to various factors such as changes in the economic situation, market trends,
and the management environment.
The Company has carefully prepared the information provided in this material, but does not guarantee the accuracy
and completeness of the information. Moreover, this content may be changed or eliminated without notice.
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