INTEGRATEDREPORT

2022

Largest ever large-scale mixed-use development in Manhattan, New York
Office buildings of Hudson Yards
Left: 50 Hudson Yards
Right: 55 Hudson Yards

Editorial Policy

Contents

For stakeholders, including shareholders and investors, to gain a correct understanding of thecomplete picture concerning the Mitsui Fudosan Group’s management strategy and corporate
activities, in addition to financial information such as financial results, review of operations andmanagement strategies, it is also important to gain a systematic understanding of non-financial
information relating to aspects such as society, the environment, human resources and governance.
Based on this belief, our Integrated Report features enhanced and integrated non-financial
information. In editing the report, we strived to incorporate the perspectives of all stakeholders byreferring to the “International Integrated Reporting Framework,” which was recommended by the
IFRS Foundation, and “Guidance for Integrated Corporate Disclosure and Company-Investor
Dialogues for Collaborative Value Creation” advocated by Japan’s Ministry of Economy, Trade, andIndustry.
Moreover, the Group’s activities have been selected and included in the report, based on theirimportance for stakeholders. For more information, please refer to various other forms ofcommunication given below.

Mitsui Fudosan’s Value
Creation

3 Group Statement/Vision/Mission
5 Mitsui Fudosan’s DNA andthe “” Logo Principles

7 Value Creation Process
9 Value Creation Sources and Achievements
11 Solving Social Issues throughNeighborhood Creation

17 A History of Value Creation: Unceasing
Challenge in Our DNA

19 Diverse Asset Classes and Global
Expansion

21 Business Model for Realizing Sustainable
GrowthValue Creation Strategy

Positioning of the Integrated Report

23 Long-Term Vision: VISION 2025
27 Message from the CEO
35 Message from the CFO
37 Strategies Toward Realization of a
Decarbonized Society

39 Diversity and Inclusion Strategy
41 Outside Director Dialogue
45 CLOSE UP: Digital Transformation
Importance to stakeholders

Financial information

Integrated Report

Importance to
Mitsui Fudosan’s value creation

Annual securities report
Financial results andbusiness highlights
Summary of results

Strategy of Mitsui Fudosan GroupNon-financial information

Value Creation Efforts
and Base Building

Value Creation through Business

47 Special Feature: Life Science Initiatives
Business Report

51 At a Glance
53 Office
57 Retail59 Logistics
61 Housing (Homes and Living)
65 Hotels and Resorts
67 Tokyo Dome
69 Dramatically Growing the Overseas

ESG report
Corporate governancereportInternal controls report

Business

Our Base for Value Creation

73 Main Environment Initiatives
77 Main Social Initiatives
83 Female Employees Roundtable

About the Website

Discussion

Corporate Website

Investor Relations

ESG/Sustainability

https://www.mitsuifudosan.co.jp/english/

https://www.mitsuifudosan.co.jp/english/corporate/ir/

https://www.mitsuifudosan.co.jp/english/esg_csr/

87 DX Promotion Initiatives
89 Corporate Governance
102 Risk Management
103 Compliance

Data Section

105 Financial Highlights
107 Non-Financial Highlights
108 Financial Analysis (Fiscal 2021)
114 Appendix
130 Organization Chart
131 Corporate Data/Shareholders’ Information
132 International Initiatives That We Support/
External Assessments

Contains materials related to financial results,
audio and video versions of results briefings
and information for shareholders and investors.

1

Integrated Report 2022

Introduces initiatives for society and theenvironment based on the Mitsui FudosanGroup’s Group Vision. More detailed information on ESG can be found in the Group’s ESG
Report.

Caution Concerning Forward-Looking Statements
This Integrated Report contains figures related to the future, which are included in results forecasts and so forth. These are based onjudgements made using information obtained at the time of publication, and thus contain risks and uncertainties. Furthermore, Mitsui
Fudosan makes no guarantee that these forecasts will be realized. Therefore, you should not rely on these forecasts alone when making
investment decisions. You should be aware that business results arise through various important factors and actual results may vary
greatly from forecasts. Important factors influencing actual results include the economic situation encompassing the Group’s businessdomains, foreign currency exchange rates including the yen-U.S. dollar cross rate, and the Japanese stock market.
Integrated Report 20222

Mitsui Fudosan’s Value Creation

Group Statement/Vision/Mission

GROUP STATEMENTThe Mitsui Fudosan Group aims to bringaffluence and comfort to urban living.
The Group Statement, Vision, and Mission embody the Group management’s
basic philosophy and its vision for the future. Since their formulation in 1999,
they have guided the Mitsui Fudosan Group as an integrated management policy.

RAYARD MIYASHITA PARK (opened in July 2020)

GROUP VISIONGROUP MISSION

What we want to be

Seeking to link diverse values, coexist in harmony with society and achieve a sustainable society,

Philosophy

as symbolized by the Mitsui Fudosan “

A profitable and growing
Mitsui Fudosan Group

3

Integrated Report 2022

Provide business andlifestyle-related
solutions and services• Maximize urban value creation by providing secure, safe and attractive urban spaces and soft
services that bring enrichment and comfort to urban living.
• Provide variable and innovative solutions that stimulate the real estate investment market.

Work in partnershipwith customers froma global perspective• Treat customers as the business foundation on which to progress and develop the Company.
• Propose and provide products and services by deploying the collaborative strength of the Group with amultidisciplinary approach that meets the real needs of customers.
• Work in partnership with customers to raise brand value by continuously providing services that are highly
valued by them.

Raise our corporatevalue• Raise corporate value through sustainable profit growth and continual innovation.
• Optimize the allocation and use of available resources and pursue efficient operations.
• Conduct operations while closely monitoring and managing business risks.

Create strong corporategroup by building thecapabilities of individuals• Seek to maintain a creative and pioneering spirit by integrating various skills and values.
• Cultivate and institutionalize the professional capabilities of individuals to raise our creative ability forvalue-added products and services.
• Maintain high awareness of ethical, disciplinary, and compliance issues, and act accordingly.

development as well as global environmental preservation.
Under “Evolution and value
creation” logo, we will work to foster social and economic” we will aim for a society that enriches both people and the planet.

By bringing knowledge and experience together in diverse ways, we seek to advance the realestate business and create new value, both at home and abroad, proactively responding to
global changes in social environments and market structures.

We seek to create a profitable and growing Mitsui Fudosan Group, acting honestly and fairly torealize the capabilities of the entire organization.

What is expected of us

Integrated Report 2022

4

Mitsui Fudosan’s DNA and the “” Logo Principles

Mitsui Fudosan’s DNA

The roots of the Mitsui Fudosan Group date back around 350 years
ago to 1673, when Takatoshi Mitsui founded the Mitsui Echigo-ya
Draper's Shop store (Echigo-ya) in the Nihonbashi district of old Edo.
Echigo-ya’s business expanded rapidly because of a groundbreaking
business philosophy of “cash only and fixed, low prices.”
Originally, kimonos were worn by samurai and as luxury items werein any case completely beyond the means of the general populace.
Kimonos were bespoke garments, with merchants visiting feudallords’ residences to take orders. The process was time-consuming
and labor-intensive, with significant wasted fabric. Garments weresold on credit, with payments made in the summer at the time of the
O-Bon festival and at year-end. Merchants were subject to interest
and also ran the risk of unpaid bills. However,society was maturing, and even membersof the general public were looking for betterclothing.
Takatoshi chose to take a new approach.
By selling ready-to-wear kimonos for cash atstores, he drastically rationalized production,
distribution, and billing, while significantly
Founder Takatoshi Mitsui
reducing costs. With regard to fabrics, in(Mitsui Bunko archives)* Reproduction prohibited
addition to the conventional silk and linen, he

used cotton cloth that was also produced in his hometown of Ise
Matsusaka. He implemented innovations to better match the tastes ofconsumers in terms of price and quality. Kimonos became productsthat were within the reach of the general public, and the Echigo-ya
business flourished.
Another key factor enabling the ready-to-wear business was what
we would now refer to as marketing. Matsusaka is situated close
to Ise Shrine. Takatoshi was able to learn about fashion trends fromthe clothes of people visiting Ise on pilgrimages. For example, hemight observe that the number of people wearing cotton had recently
increased, or gain insight into which patterns were consideredfashionable in that year. Takatoshi made use of this kind of informationin manufacturing merchandise.
It was entirely due to its “spirit of enterprise” and its “customer
orientation” that Echigo-ya’s business continued to expand thereafter,
developing into Mitsui Gomei Kaisha. In 1941, Mitsui Gomei Kaisha’s
Real Estate Division, which managed the real estate held by thecompany, was spun off and became Mitsui Fudosan Co., Ltd.
Echigo-ya’s “spirit of enterprise” and “customer orientation” lives on in
the Mitsui Fudosan Group’s DNA.

Ingrained DNA“Spirit of Enterprise” and “Customer Orientation”

2022

Mitsui Fudosan’s Value Creation

Nihonbashi today

Connections with“

Based on the DNA of the “spirit of enterprise” and “customer-centricfocus” handed down from Echigo-ya, the Mitsui Fudosan Group has,in step with the development of Japan’s economy and society,created new value by innovating its business in ways that have met
the demands of the times and the voices of its customers.
Examples of this genealogy include land reclamation projects todevelop land for factory sites along bayside areas to strengthen the
country’s standing as an industrial and trading nation; construction ofJapan’s first skyscraper (the Kasumigaseki Building) through the
adoption of advanced methods for the use of space to cope with theover-concentration of urban functions; and residential development
as well as residential and residential distribution businesses that
address the influx of population into urban areas and pursue affluencein living.

”

Logo Principles

We are also working to help address social issues throughneighborhood creation. These efforts have included the developmentof retail facilities and the hotel and resort business, which we enteredin response to the growing demand for leisure. We also were industry
leaders in real estate securitization following the bursting of the bubble
economy in the 1990s. Today, we are working to realize smart cities
by spurring digital transformation.
In this way, the Group has viewed paradigm shifts in society andthe economy in every era as opportunities, and has been constantly
creating new value by bringing together diverse knowledge andvalues. Rather than making “or” selections between conflicting values,
this history of creating new value derives from staying true to ourmanagement vision of overcoming conflicts and coexisting in the spiritof “and” as well as with the principles behind the Group’s “ ” mark.

1673

The Group regards its “spirit of enterprise” and “customer orientation” as DNA inherited from
Echigo-ya. The Group will—as a company that has addressed customers’ needs through theages—strive to create further value in accordance with the principles embodied by its “ ” logo:
to coexist in harmony with society, link diverse values and achieve a sustainable society.

Nihonbashi during the Edo period/The Echigo-ya in Surugacho on New Year’s Day, a woodblock print by Kiyonaga Torii(The Mitsui Memorial Museum collection)

5

Integrated Report 2022

Integrated Report 2022

6

Mitsui Fudosan’s Value Creation

What we want to be

Value Creation Process[Group Statement]

The Mitsui FudosanGroup aims to bringaffluence and comfort
to urban living

We have inherited the “spirit of enterprise” and “customer orientation” in our DNA, and in accordance with the principles
embodied by the “ ” logo—coexist in harmony with society, link diverse values and achieve a sustainable society—the Mitsui
Fudosan Group views the paradigm shift of society and economy in every era as opportunities. Accordingly, we leverage ourstrengths of engagement in every asset class, an expansive value chain, and development capabilities necessary for creatingneighborhoods to solve social issues through neighborhood creation with the aim of achieving a sustainable society anddriving sustainable profit growth.

Management Resources

P.9

Solve social issues through neighborhood creation
under the “ ” logo principles*1
P.11

Extensivecustomer base(As of the end of FY2021)

P.53–66

Before development

The former Hibiya Mitsui Building

After development

P.3*1 Coexist in harmony with society, link diverse values and achieve a sustainable society

TOKYO MIDTOWN HIBIYA

Establish a
Sustainable Society

Office tenants: Approx. 3,000 companies
Retail tenants*2: Approx. 2,400 companies

P.25

P.37–40

Mitsui Housing Loop members
Approx. 290,000, etc.
*2 As of April 1, 2022

Diverse human resources(As of the end of FY2021)

P.77Group headcount: 24,408
Ratio of female employees*3: 42.1%
Ratio of mid-career hires*4: 44.1%

Our DNA*3 Non-consolidated, as of April 1, 2022
*4 Non-consolidated, FY2021

Spirit of enterprise
Customer orientation

High-quality real estate
asset stock(As of the end of FY2021)

P.21

Our Strengths

Rental properties: Approx. ¥3.1 trillion

Expansive value chain

Drive Sustainable
Profit Growth
P.26

P.35

(Investment, development, management, leasing and sales)

Development capabilities necessary
for creating neighborhoods

Solid financial position

Multi-site shared offices forcorporate clients

E-commerce mall linked toreal stores

Earnings and profit growth

P.35

Material issues for value creation

D/E ratio: 1.31 times

Unused commitment line:

Support for diverse workstyles(Offices, retail, logistics, housing, hotels, etc.)

Real property for sale: Approx. ¥2.1 trillion

Ratio of long-term debt
(excl. non-recourse): 94.8%

Creating neighborhoods full of life

Engaged in every asset class

Unrealized gain on real estate
for rent: Approx. ¥3.0 trillion(As of the end of FY2021)

P.5

Reduce environmental impact and generateenergy● Create new industries through open
innovation●

P.25(established in VISION 2025, Group Long-Term Vision)

Establish ultra-smart societies by creatingneighborhoods● Achieve health, safety, and security in people’s
daily lives●

P.23

Achieve a society where a diverse
workforce can thrive● Continuously improve compliance andgovernance●Improvements in asset andcapital efficiency
Shareholder return enhancements¥400.0 billion

External Environment Recognition

7

Integrated Report 2022●●

Population decline ● Low birthrates and an aging society ● Evolution of ICTDiversification and decentralization of values ● Increasing awareness of sustainability, among others

Integrated Report 20228

Mitsui Fudosan’s Value Creation

Establish a Sustainable Society

Value Creation Sources and Achievements

Promoting the Provision of Green Electricity
to Mitsui Fudosan Properties

Management Resources

Values without a noted time are as of the end of FY2021.

Office tenants:

Approx.
Extensivecustomer baseCreation of a New Urban Space
During the Period of Rapid
Economic Growth

Retail tenants:

3,000 companies

Approx.

2,400 companies

Approx.

Approx.

13 million

Mitsui Housing Loop members:

Mitsui Garden Hotel members:

290,000

600,000

Approx.

Over

An Initiative to Create a
Multi-Generational Community

Full lineup of
product brands

P.53

Has achieved cumulative
sales of over 230,000*
condominiums

Equivalent to the annual
power needs ofAnnual power generation80

20,000Approx.

typical households**Converted based on fiscal 2021 statistical
data of Japan’s Ministry of the Environment

Contribution to greenhouse gas
reduction through maintenance ofsustainable forests

P.65

Solving Social Issues
through Neighborhood
Creation P.11

Annual CO2 absorption and fixation by forests

Approx.

17,251 t
Drive Sustainable Profit Growth

P.53–66

Operates car parks inover 15,000 locations
across Japan

Reduction of greenhouse gases
through generation of green
electricity(Usage in building materials, etc.)

Tackling Regional
Revitalization through Urban
Waterfront Development

No.1 for number of brokered
deals for 36 consecutive years
Records revenue-generating
capacity of ¥1.2 trillion
P.57(FY2021)

Approx.
million kWh

Ownership of About 5,000
Hectares of Forest in Hokkaido

Operates Companyowned hotels offering
about 13,000 guest
rooms in Japan andoverseas* Including sales of joint ventures

960

180

Approx.
million kWh

Representative brands in each asset classOperates over 100 officebuildings, primarily inTokyo metropolitan area

FY2030 cumulativeplanned capacity

Ownership and operation of five solar power
generation facilities (As of August 31, 2022)(As of the end of July 2022)
P.53–66

Number of properties
receiving green electricity

Solar Power Generation Facility(Mega-Solar) Business

Mitsui Shopping Park point card members:

240,000

In cooperation with electric power companies, now
we can provide green electricity in the three major
metropolitan areas (As of March 2022)

Approx.

(As of April 1, 2022)

WORK STYLING members:

Contribution to the realization of adecarbonized society not only by ourselves
but also with tenants and owners

Earnings Expansion
P.63(Billions of yen)

Revenue from operations

2,500
2,000

1,861.1

1,905.6

2,100.8 bn

1,751.1

2,007.5

1,704.4

2016

2017

2018

2019

2020

2021 (FY)1,500

Diverse humanresources

Group headcount:

24,408
Women in general positions ratio(non-consolidated):

P.77

16.5%
(As of April 2022)

High-quality realestate asset stock

Rental properties:

Approx. ¥3.1 trillion

Ratio of women employees(non-consolidated):

42.1%

P.35

9

Integrated Report 2022

Enhancing Tokyo’s
Competitiveness as an
International City

6.8%

(As of April 2022)(As of April 2022)

Ratio of mid-career hires(non-consolidated):

Ratio of employees returned fromchildcare leave (non-consolidated):

Approx. ¥3.0 trillion(

D/E ratio:

Ratio of long-term debt:

Unused commitment line:

1.31 times

94.8%

400.0 billion(Excl. non-recourse)

EPS (left axis)

Creation of Space Where
People Can Spend Rich andQuality Time

Profit attributable to owners ofparent (right axis)¥)

Shareholder Return
Enhancements

Promotion of Urban Revitalization
through Sound and Open New
Real Estate Markets

100

155.8
131.8
133.4

157.7

171.3

188.3

176.9 bn
184.4 yen
134.4

2016

2017

2018

80

2019

2020

40

30.0 bn
25.0

15.0

16.0

35.0

35.1

36.9

33.5

39.5

43.2

42.8

42.3

46.6%
52.5 bn

2016

2017

2018

2019

2020

2021 (FY)

25.5

20
0

2021 (FY)0(Billions of yen)

80
60

120

40

(%)

Total dividends (right axis)

200
160

129.5

100

Total shareholder return ratio (left axis)
Total amount of treasury stockacquired (right axis)

168.6

183.9

50
0

Approx. ¥For property sales to investors ¥1.4 trillion
For property sales to individuals ¥0.7 trillion(Billions of yen)

150

Real property for sale:

2.1 trillion

0

(Yen)

(general positions)(As of the end of FY2021)

Unrealized gain on real estate for rent:

500

Earnings per Share (EPS) 250
and Profit Attributable to 200
Owners of Parent

100%

44.1%

P.21

Solid financial
position

1,000

Women in management positions
ratio (non-consolidated):

15.0
44.2

100
80
60

Integrated Report 2022

40
20
0

10

Mitsui Fudosan’s Value Creation

Solving Social Issues through Neighborhood Creation
The Mitsui Fudosan Group has created new value by solving a broad array of social issues through neighborhood creation.
Several examples are introduced below.

Creation of a New Urban Space
During the Period of Rapid
Economic Growth
Kasumigaseki Building
As a forerunner in making advanced use of urban space, weconstructed Japan’s first skyscraper, achieving effective use ofland in a city center along with contribution to the community
through the creation of open areas and green spaces.

An Initiative to Create a
Multi-Generational Community
Suncity
By viewing a well-knit community of tenants and local residents
as a new asset value and by creating a forest on the groundsof a condominium building, we achieved the formation of amulti-generational community connected by forest.

At the time of completion

11

Integrated Report 2022

Present day

Integrated Report 202212

Mitsui Fudosan’s Value Creation

Tackling Regional Revitalization
through Urban Waterfront
Development

Enhancing Tokyo’s
Competitiveness asan International City

Okawabata River City 21

TOKYO MIDTOWN

By redeveloping old factories, warehouses, and other assets into
housing in the bay area of central Tokyo, which faces a shrinking
residential population, we enhanced urban disaster readiness
functions and achieved a population increase in the Bay area
through providing new living spaces.

BeforeBy creating a brand-new type of mixed-use type neighborhoodthat closely integrates work, play, rest, and living, we sublimated a former Defense Agency site into our flagship site andenhanced the urban competitiveness of Tokyo through a concentration of diverse companies and an increase in visitors to
the neighborhood.

After

Before13

Integrated Report 2022

Integrated Report 2022

14

Mitsui Fudosan’s Value Creation

Creating Spaces Where People
Can Enjoy a Rich andFulfilling Time
LaLaport
In a mature consumer society, we created spaces where visitors canenjoy a rich and fulfilling time by providing retail facilities that serve as“places to prosper, eat, play, and gather.”

15

Integrated Report 2022

Promoting of Urban Revitalization
through a Sound and Open New
Real Estate Market
Real Estate Securitization
We helped reenergize the real estate market, which had stalled
following the burst of the bubble economy, by adding liquidity thatcombines real estate transactions with finance through the creationof a real estate investment trust market. We also supported urban
revitalization efforts through increased development-type projects.

Integrated Report 202216

Mitsui Fudosan’s Value Creation

A History of Value Creation: Unceasing Challenge in Our DNA
The Mitsui Fudosan Group’s history can be seen as one that, in step with the development of Japan’s economy and society, has created new value by innovating its business in ways that meet the demands of the times and the voices of customers.

1941 (Founding) –1970 –

1990 –

2000 –

2010 –

Business foundation established during a period of
rapid economic growthMoved to diversify management to achieve stable growth

Rebuilt business during the period of deflation
following the collapse of Japan’s economic bubble

Asset deflation convergence andadvancing neighborhood creation

Advancing mixed-use neighborhood
creation amid market maturity

Creation of new value
Late 1950sContributing to infrastructure developmentin the Tokyo metropolitan area

1968

Transforming sea into land

Pioneering Japan’s skyscraper era

Keiyo Rinkai reclamation project

1981

Japan’s first skyscraper

1993

A forerunner in shopping centers

Kasumigaseki Building

A forerunner in Tokyo Bay area tower
condominium buildings

Creating new lifestyles

Resolving housing issues in the city center

LaLaport TOKYO-BAY

Okawabata River City 21, West Block

Expansion of asset classes
OfficeBuildings

1929

1995

2001

Creating a new consumption styleCreating new businesses in the real estate industry

Japan’s first genuine outlet mall

Japan’s first corporation listed on the J-REIT

MITSUI OUTLET PARK OSAKA TSURUMI

Nippon Building Fund Inc.

Leveraging Our Strengths to Create Mixed-Use Neighborhoods Fusing an Array of Functions

1968

Construction of Mitsui
Construction of Kasumigaseki
Main Building completed Building completed

Housing

1968

1971

1993

Construction of Yurigaoka
Garden Mansion completed

Construction of Mita Tsunamachi
Park Mansion completed

Construction of the entire Okawabata
River City 21, West Block completed

RetailFacilities
Hotels &Resorts

1981

1995

LaLaport TOKYO-BAY
opens for business

MITSUI OUTLET PARK OSAKATSURUMI opens for business1984

2004 –
Nihonbashi Revitalization Plan begins

Mitsui Garden Hotel Osaka Yodoyabashi
opens for business2007
TOKYO MIDTOWN
opens for business

Logistics
Facilities

2014
Kashiwa-no-ha Smart City
opens for business2018
TOKYO MIDTOWN HIBIYA
opens for business2014
Construction of Mitsui Fudosan Logistics
Park Yashio completedExpansion of overseas business areas
North America

1973

1984

1986

2013

Mitsui Fudosan (USA)established

HALEKULANI (Hawaii)
opens for business

Acquisition of 1251 Avenue ofthe Americas (New York)San Francisco Branch established

EuropeAsia

17Integrated Report 2022

1990
Mitsui Fudosan (U.K.) Ltd. establishedHudson Yards

Television Centre

1972

2005

2013

2016

2020

Establishment of TID Pte Ltd., a joint venturewith Hong Leong Group in Singapore

Establishment of the Shanghai
Representative Office in China

Participation in housingbusiness in Southeast Asia

MITSUI OUTLET PARK Linkou
opens for business in Taiwan

Construction of RMZ
Ecoworld 30 started in India

Integrated Report 202218

Mitsui Fudosan’s Value Creation

Diverse Asset Classes and Global Expansion
As a Group of leading comprehensive real estate companies in Japan, the Mitsui Fudosan Group is developing a real estate businessbased on diverse asset classes.
Overseas, we are also expanding our business through the careful selection of asset classes matched to circumstances of theeconomies, cities, and other factors in the areas into which we expand.

Diverse Asset Classes
Main Asset Classes

Asset Classes by TypeKey Data*1

Office Buildings

Leased Floor Space*2

Approx.

Retail Facilities

Sources of Revenue

3,396,000

Number of Tenant Companies

m2

Approx.

Leased Floor Space*2

Approx.

2,392,000

3,000

Number of Tenant Companies

m2

Approx.

2,400(As of April 1, 2022)

Logistics Facilities

Housing

Hotels and Resorts

Number of Project Facilities*3

Total Floor Space53

Approx.

4,200,000

Number of Condominium
Units Delivered

Number of DetachedHouses Delivered

3,208

507

m2

Number of Brokered
Sales*4

41,183

OthersMain Brands

27%• Leasing revenue fromtenants• Income from property
sales to REITs

Approx.
¥2.2 trillion• Leasing revenue fromtenants• Income from property
sales to REITs• Leasing revenue fromtenants• Income from property
sales to REITs

Office Buildings

52%

Retail Facilities

13%

Mitsui Fudosan Group
Total Assets

8.2 trillion

Approx. ¥• Income from property
sales to individuals/REITs• Leasing revenue• Broker commissions• Management fees

Logistics Facilities(As of the end of FY2021)
Mitsui Rehouse

5%

21%

Housing

Facilities Directly Operated by the Company

52

Approx.

13,100• Accommodation fees

rooms

Real estate (tangible and intangible fixed
assets + real property for sale)(As of July 1, 2022)*1 Values without a noted time are as of the end of FY2021.
*2 Includes subleased floor space. *3 Includes existing facilities and facilities under development. *4 Number of Mitsui Fudosan Realty Group brokered sales prior to eliminations.

73%

Hotels and Resorts

3%

Others6%

Approx. ¥6.0 trillion

Our Globally Expanding Assets
Our Assets in Overseas AreasNORTH
AMERICA

Office Buildings

Retail Facilities

Logistics Facilities

EUROPE

Boston• Denver• San Francisco

Washington, D.C. •• Los Angeles• DallasRental Housing•• Shanghai

Integrated Report 2022

Asia

• Taipei, etc

Mitsui Fudosan Group
Total Assets• Manila
Bangkok
Singapore

Kuala Lumpur ••*8.2 trillion*

Approx. ¥(As of the end of FY2021)•
Jakarta* Includes serviced apartment buildings

19

23.4%

Approx. ¥1.9 trillion• Bengaluru •London •Overseas

ASIA
•

•
•

Assets by Area

Hotels and Resorts

Guangzhou

New York• Seattle

New Jersey

Honolulu•

Condominiums

Domestic

Sydney •

76.6%

19%
UK

8%

USA

74%

Approx. ¥6.3 trillion

Integrated Report 2022

20

Mitsui Fudosan’s Value Creation

Business Model for Realizing Sustainable Growth
Maximize Profits through an Optimal and Flexible Combination of Real Estate “Holding & Leasing,” “Development & Sales,” and “Management”

Mitsui Fudosan Group’s

Investors/Property owners
Tangible and intangible fixed assets
Approx. ¥48%

Approx. ¥3.9 trillion

8.2 trillion(As of the end of FY2021)

2.2 trillion

27%

Holding andLeasing Business

Real property for sale
Approx. ¥25%

Investors

Sales Revenue

Cash
Flow

OthersApprox. ¥Property Sales

Development andSales Business

2.1 trillion

8.2 trillion

Management Operation Brokerage, etc.

Leasing Revenue¥

Leasing

Mitsui Fudosan Group
Approx.
Total Assets

Management
Business

Commissions

Property
Owners(Structures and manages private funds)

Assets Under Management (AUM)

Approx. ¥4.6 trillion

Tenants
Office tenants Approx.

21

Integrated Report 2022

3,000 companies

Tenants
Retail tenants Approx.

2,400 companies

Integrated Report 2022

22

Value Creation Strategy

Long-Term Vision: VISION 2025

Main Initiatives

In May 2018, Mitsui Fudosan published VISION 2025, the Group’s long-term vision, based on its existing Group Statement, Vision,and Mission. VISION 2025 calls on the Group to aim to innovate the real estate business and achieve further globalization, maintain

Drive evolution in the creation of neighborhoods

robust growth and profitability, and contribute to establishing a sustainable society.

P.11• Provide business and daily lifestyles to people, who are the centerpiece of the creation of neighborhoods.
• Realize the creation of neighborhoods that improve with age and develop smart cities that serve as
platforms for ultra-smart societies.

VISION 2025

Innovate business models by harnessing real estate tech

• Successfully establish a sustainable society through the creation of neighborhoods• Harness technology to innovate the real estate business• Evolve into a global company• Enhance the competitiveness of existing businesses and create new businesses throughReal Estate × ICT.
• Accumulate and utilize data from real physical spaces, such as offices, retail facilities, and residences.
Dramatically grow the overseas business

Awareness of the External Environment

Risks

Opportunities• Population decline in Japan, lowbirthrates and an aging society• The advance of globalization• Evolving technology• Diversification and fragmentation inperceptions of value• Greater awareness of sustainability• Decrease in demand and labor
shortages due to population decline• Shrinking of existing businesses due
to digital disruption• Increased costs incurred by response
to environmental considerations, etc.

• Market creation through the
manifestation of potential demand• Rise in demand due to increase in
inbound customers• Increase in overseas business
opportunities• Diverse workforce due to diversity
promotion

Basic Strategies

Infrastructure to support initiatives
Human resource strategies

Organization, systems and governance

P.39

P.89

• Promote further diversity• Encourage higher workforce
participation by women• Recruit and train globally minded
human resources and IT professionals• Enhance awareness of Group-wide
optimization• Establish organization and systems
that encourage innovation• Strengthen governance and strictly
enforce compliance

23

P.31

P.35

• Appropriately control the balance
sheet• Build an optimal portfolio• Diversify fundraising methods asappropriate for various asset types

Realize sustainable growth in profits by around 2025

Establish a sustainable society
Drive sustainable profit growthBusiness innovation

Evolution of Group management• Innovate the real estate business• Make extensive use of digital technology• Establish new profit models• Strengthen Group synergies• Promote Group collaboration globally• Strengthen external collaboration and implement
open innovation

Integrated Report 2022

Asset and financial strategy

Outlook

Achieve Society 5.0
Contribute to the SDGs
Pursue common social value

P.69• Expand business by leveraging the Mitsui Fudosan Group’s strengths as a comprehensive andintegrated developer.
• Promote further localization and expand neighborhood creation development projects overseas.

Customer-centered management• Appropriately address changes in customers’
values• Create markets by uncovering unmet needs• Execute on a global level

P.87

Around 2025
Consolidated operating income

Around350 billion¥

Of which: Overseas income

Around30%

ROA

Around5%Integrated Report 2022

24

Value Creation Strategy

Sustainability Management

Basic Capital Policy

In order to realize continuous value creation, the Mitsui Fudosan Group has positioned ESG (Environment, Society, and

The Company has a basic policy of continuously enhancing

Governance) as a key management issue, and heralds six material issues for the area.

shareholder value and corporate value through well-balanced

Undertaking the stable payment of dividends
while flexibly repurchasing own shares

By further evolving neighborhood creation through the pursuit of these goals, the Group aims to achieve a sustainable society anddistribution of earnings every fiscal year for expanding returns

Total shareholder return ratio

drive sustainable profit growth.

to shareholders and investing in growth, while maintaining

(%)

60

financial soundness.

Material issues (priority goals) and initiatives

40

Relevant SDGs

35.0

35.1

36.9

2017

2018

2019

44.2

46.6％

2020

2021

20

Reduce environmental impact and generate energy

P.73
0• Contribute to achieving a decarbonized society by reducing energy usage and greenhousegas emissions• Transition to renewable energy for electricity used in business operations• Build rich natural environments that get better with time

Create new industries through open innovation

Shareholder Return Enhancements

Continuously Enhance Corporate Value,
Increase Shareholder Value

P.47• Form worldwide industrial clusters to pool various resources and drive innovation• Constantly create new value from the customer’s perspective through broad-based
relations and collaborations

Establish ultra-smart societies by creating neighborhoods

ROE
（%）

8.0

7.4

7.4

7.7

P.87

4.0
2.0
0

2017

2018

2019

P.77

• Establish a foundation for everyone to live the life they choose, regardless of individual
circumstances• Provide products and services that expand people’s potential and foster expectations andhope for the future• Promote good mental and physical health and provide products and services to makeactive, happy lives possible

Continuously improve compliance and governance

P.89

Reinvestment of profits ingood investment opportunities
Building of quality-based asset portfolio
ROA
（%）

6.0

2.00

1.18

1.24

1.45

1.42

1.31

1.00

0

4.6

4.4

4.2

4.0

2.8

3.3％

2.0

0.50

• Build a well-structured compliance system to win further trust from society• Establish a strong and flexible governance system that achieves both growth and stability(FY)

Ensuring an appropriate D/E ratio level(Times)

P.103

2021

Investment for Growth and Buildingof Quality-Based Asset Portfolio

D/E ratio

1.50

2020

Financial Soundness

P.53–72• Develop and operate resilient, safe, and secure facilities that protect people from threatssuch as disasters and infectious diseases

Achieve a society where a diverse workforce can thrive

6.6％
5.2

6.0

• Leverage technologies to solve individuals’ and neighborhoods’ problems by building
communities and places for people to gather and support one another• As a country facing issues earlier than others, build neighborhoods that will serve asinternational problem-solving models

Achieve health, safety and security in people’s daily lives

(FY)

2017

2018

2019

2020

2021
(FY)

0

2017

2018

2019

2020

2021
(FY)

Shareholder Return Policy
Sustainable Society

Sustainable Profit Growth

Medium- to long-term goals (main non-financial KPIs)

25

P.37

returns profits to shareholders based on comprehensive consideration of such factors as the business

P.39

environment and its performance and finances.

Greenhouse gas emissions

Share of renewables in power used
for business activities

Female manager ratio(Mitsui Fudosan Co., Ltd. non-consolidated)

Achieve by FY2050

By FY2050

By FY2030

Net Zero

100%

20%

Integrated Report 2022

• Mitsui Fudosan reinvests earnings to increase shareholder value over the medium to long term and• In order to strengthen shareholder returns, Mitsui Fudosan undertakes the stable payment of dividends
while flexibly repurchasing its own shares in a bid to enhance capital efficiency.

• Mitsui Fudosan has identified a total shareholder return ratio of around 45% of profit* attributable toowners of parent.
* Revised in May 2022

Integrated Report 2022

26

Value Creation Strategy

Message from the CEO

The Roots and DNA of Mitsui Fudosan, The “” Logo Principles(1) The Roots and DNA of Mitsui FudosanThis year marks the 400th anniversary of the birth of Takatoshi
Mitsui, the founder of the Mitsui Group Next year will be the 350th
anniversary of Takatoshi Mitsui’s relocation from Ise-Matsusaka to
Edo and the opening of a kimono store in the Nihonbashi district.
In 1673, Takatoshi Mitsui founded a kimono store called Mitsui
Echigo-ya Draper’s Shop in the Nihonbashi district of old Edo. The
store’s business expanded rapidly driven by its groundbreaking
business philosophy of “cash only and fixed, low prices.” So what
was groundbreaking about this?
Originally, kimonos were worn by samurai and were luxury items
out of the reach of common people. Kimonos were bespoke
garments, with merchants visiting feudal lords’ residences to takeorders. The process was time-consuming and labor-intensive,with significant wasted fabric. Garments were sold on credit, withpayments made in the summer at the time of the O-Bon festival
and at year-end. Merchants had to bear the burden of interest,
and there was default risk as well. This was the backdrop when
Japan entered the Genroku period (1688 to 1704). Society had
matured, and common people wanted better clothes.
Takatoshi Mitsui chose to take a different approach. He soldready-made kimonos for cash at the store and through drastic
streamlining of production, distribution, and billing, succeeded insignificantly reducing cost. In addition to the traditional silk andlinen fabrics, he used cotton fabrics which were produced in his

Conceptual Image of Value Creation
Mitsui Fudosan Aims For

We aim to address social issues throughneighborhood creation, which will enable
us to balance social and economic value
in managing our business.

President and Chief Executive Officer
Mitsui Fudosan Co., Ltd.

hometown of Ise-Matsusaka, and innovated to better match
consumer tastes in terms of price and quality. As a result of thesechanges, kimono became affordable for common people, andMitsui Echigo-ya became very prosperous. It was Takatoshi Mitsui
who first practiced the “spirit of enterprise” which enabled a“customer orientation” in the Edo era. This has been passed down
as the DNA of Mitsui Fudosan.
Mitsui Echigo-ya’s business continued to expand, and in 1909,
the holding company of the Mitsui zaibatsu (corporate conglomerate), Mitsui Gomei Kaisha, was established. In 1941, taking overthe core business of Mitsui Gomei, Mitsui Fudosan Co., Ltd. wasfounded. Our history can be seen as one that, in step with thedevelopment of Japan’s economy and society, has created newvalue by innovating our business in waysthat meet the demands of the times andthe voices of our customers. (See page 5.)
A “customer orientation” that sincerely
addresses customers’ needs and a “spiritof enterprise” that boldly tackles value
creation and innovation in our businessoriginated with Takatoshi Mitsui and has
been inculcated into every one of ourFounder Takatoshi Mitsui
employees to this date as a part of our(Mitsui Bunko archives)* Reproduction prohibitedGroup’s DNA.

IntroductionMore than two years have passed since the COVID-19
pandemic began. Now, with the progress of vaccination, theworld is feeling its way toward a society where we can livewith COVID-19 and is rapidly shifting its focus to economic
recovery. At the same time, inflation is on the rise around theworld due to a worldwide surge in demand on the back of
the recovery from COVID-19, rising energy prices, foodshortages and supply constraints such as disruption of
supply chains and logistics. In addition, the recent Russian
invasion of Ukraine has caused disruption in the world. As ademocratic nation, we cannot allow this; we must continue
to stand by the Ukrainian people who are in extreme miseryand do whatever we can to maintain world peace and theinternational order.

27

Integrated Report 2022

As I note in this space every year, focusing on corporate
philosophy and universal values is a vital key to surviving insuch an era of uncertainty. Looking back at our corporateroots to understand the ceaseless efforts and innovations ofour predecessors which led to the creation of social values
and sustainable growth upon which our current business isbuilt can provide us with a guiding light toward our future
path.
This time, I would like to revisit the roots of Mitsui Fudosan
and its DNA and philosophy to clarify our purpose and social
mission. I will then share my thoughts on what we must do
for the global environment and the society in which we live
and the corporate values needed to achieve this.
Nihonbashi during the Edo period/The Echigo-ya in Surugacho on New Year’s Day, a woodblock print by Kiyonaga Torii(The Mitsui Memorial Museum collection)

Integrated Report 2022

28

Value Creation Strategy(2) The “” logo principles

The symbolic crystallization of this DNA is the management
vision of the “ ” logo principles. Instead of making an“either-or” decision between conflicting concepts, we accept
diversity even when the accepted wisdom suggests that somevalues are conflicting by nature. Our management philosophy
is to make these values coexist in the spirit of “and” byovercoming conflict and to realize a sustainable society. This
management vision was established on the 50th anniversary of
our founding in 1991, long before keywords such assustainability and ESG came into common use. I take great
delight in this philosophy because it accurately indicates the
direction the Company should aim for.
For example, real estate development used to be viewed as
destroying nature. This is precisely why the Mitsui FudosanGroup has attached importance to coexistence with theglobal environment and local communities under the “ ”logo principles. The development concept—“Preserving andRevitalizing the Heritage while Creating the Future”—of Mitsui’s
home base, Nihonbashi, Tokyo, symbolizes this principle.

(1) Realization of a decarbonized society
While we have chosen to conserve historical assets which
deserve to be preserved such as the Mitsui Main Building, theBank of Japan, the Takashimaya Main Building and the bridgeof Nihonbashi, we will create leading-edge high-rise buildings,
while seeking harmony by restoring the waterfront and blue
skies of the scenery of Nihonbashi River and Fukutoku Shrine,
which had been relegated to a neglected corner of the city inthe flow of the times. On the other hand, on a back street, we
will create a lane that reproduces the townscape of Edo. These
epitomize the neighborhood creation of the “ ” logo where“people and nature” and “tradition and innovation” coexist, andare the embodiment of our purpose.
I am convinced that the role of the Group will become more
and more important for future socio-economic development
and the preservation of the global environment; going forward,
we will make every effort as a Group under the principles of“coexist in harmony with society,” “connect diverse values” and“achieve a sustainable society” which are symbolized by the“ ” logo.

Addressing climate change is a social responsibility for ourGroup, which undertakes the construction and developmentof social infrastructure. We position decarbonization initiatives
as a top priority. Setting medium- to long-term goals forthe reduction of greenhouse gas emissions is not enough;as a leader in the real estate industry, it is also important tohave an action plan which outlines how we propose to achievethis. Based on repeated discussions involving the entire
organization, we formulated a Group-wide action plan for theachievement of a decarbonized society in November of lastyear. (See page 37.)
The achievement of a decarbonized society is an urgent
issue that must be addressed by society as a whole, under
the philosophy of “coexist in harmony with society” implicitin the “ ” logo. Together with our stakeholders, our Groupwill strengthen our activities to put our action plan into
practice.

(2) Diversity and inclusion initiatives
Another idea behind the “ ” logo is “connect diverse
values” or, in other words, “diversity and inclusion (D&I).”
D&I has been an area of increased focus in recent years toensure diversity in corporate management. One of thecharacteristics of the Group to this point has been our
homogeneity, for better or worse. However, as values are
maturing and diversifying, we will not be able to addresschanges of the times with homogeneity. Therefore, I can saythat D&I is the biggest issue for the Group.
In particular, the real estate industry has long been considered
to be a man’s job that requires physical strength, involving
working in dangerous development sites and negotiatingwith local residents and governments day and night. I
believe that women’s perspectives have a great influence on
all aspects of our business, including housing, retail andhotels. In my view, this industry will eventually grind to a halt
if we do not increase the number of female employees andsupport their active participation with a strong sense ofurgency. In addition, to truly promote the advancement of
women, it is very important to change the mindset within the
Company by eliminating the filter of gender, treating each
employee as an individual, and being open and accepting.
Sparked by this, last year, our Group formulated a declaration
on diversity and inclusion along with policies on related
initiatives. We have set the promotion of the advancement of
women as an important theme, and established quantitativeand qualitative goals for the Group. (See page 39.)
Recognizing that the greatest driving force behindcompanies’ value creation is the asset of human resources,
we will further expand diversity in terms of gender andglobal human resources, and will leverage the varied
opinions and knowledge generated from this to create new
business opportunities.

(3) Dissemination of information and dialogue with the market regarding Mitsui Fudosan’s value creation* Preserving and Revitalizing the Heritage while Creating the Future

Recognizing Issues to Be Addressed by Mitsui Fudosan
Although companies have been assessed solely on financial
factors, this is becoming a thing of the past. From here onout, the will and the execution ability of management toenhance corporate value from both financial and non-financial
aspects will be valued. Looking back on history, it is clear thatcompanies are required to create not only economic value but

29Integrated Report 2022

also social value. Of course, these values are compatible, andI believe that contribution to a sustainable society throughvalue creation is what will lead to sustainable growth forcompanies.
Now, I will discuss the issues the Group must proactively
address to achieve further improvements in corporate value.

The third philosophy of the “ ” logo is “achieving a sustainable
society.” I feel that the challenge here is to firmly communicate
to the market our thoughts on our purpose, social mission, andvalue creation as we move toward realizing our vision, to
promote better understanding among investors.
Real estate companies in other geographies are typicallydifferentiated by function, focusing on property ownership ordevelopment and often with simple asset classes. Although
they deal with real estate as we do, their business models arequite different from those of the Japanese comprehensive
developers.
A company like our Group, which deals with all types ofassets as a single corporate entity, fulfills all functions of
Holding & leasing, Development & sales and Management, withthe ability to promote neighborhood creation by leveraging its
comprehensive strengths, is globally very rare. In addition, evencompared with the time horizon of the investors who support
us, neighborhood creation is a business that operates on very
long time spans. As such, I had felt that it might be difficult tosufficiently convey our corporate value with conventional
financial indicators alone.
I wanted to find a solution to this problem. Through continued
dialogue with many investors, I have been exploring the ideal
image of value creation for us by listening to the voices of themarket and, at times, receiving encouragement. I would like toexpress my thoughts below.

“Engaged in every asset class” “Extensive value chain”“Development capabilities necessary
for creating neighborhoods”
Investment

OfficeBuildings
Hotels &Resorts

Housing

RetailFacilities

Logistics
Facilities

Sales

Development

Leasing

Operations

Integrated Report 2022

30

Value Creation Strategy

Conceptual Image of Value Creation Mitsui Fudosan Aims For(1) Mitsui Fudosan’s neighborhood creation approach
In the value creation which we aim for, we view “creation ofsocial value” and “creation of economic value” as two halves ofa whole. The social value that our Group creates is nothing
less than “providing people with emotional experiences,”“enriching people’s lives” and “achieving a sustainable
society,” through neighborhood creation. The following two
points are at the core of this neighborhood creation.
Create neighborhoods that “put people first”
To meet the increasingly diverse and sophisticated needs ofour customers, we must change our business approach inaccordance with the underlying idea of providing ourcustomers with not only a tangible element in the form ofspace, but also “living” and “office life” including services,which are intangible elements. In other words, we provide
our customers with real estate in the form of services, andnot simply a physical property. We call this “Real Estate asa Service.” When pursuing this approach, the leading role inneighborhood creation is not buildings but people.
Create neighborhoods that “get better with age”
When pursuing neighborhood creation that “puts people
first,” what is required of the neighborhoods will also change.
If the people who visit the neighborhoods change, or if whatsuch people want changes even if they themselves do notchange, the neighborhoods must evolve accordingly. In
addition, neighborhoods develop a spirit of place over timeand its natural elements such as the greenery grow. Creatinga high-quality community rooted in the neighborhood andproviding high-quality town management will add appeal to
the neighborhoods, making them more attractive as timegoes by. We refer to this as “improving with age.” From thisperspective, the completion of a building is not the goal but
a starting point for our neighborhood creation.

Through neighborhood creation“Providing people with emotional experiences”“Enriching people’s lives” “Achieving a sustainable society”

Mitsui Fudosan’s Approach

Putting people first

Getting better with age“Real Estate as a Service”
Belonging to a high quality community

Responding to changing human needs andvalues, neighborhoods continue to evolve❷ Existence of central urban assets
In addition, there are many so-called “central city assets” onour balance sheet. Including Tokyo and New York, thepercentage of central city assets in our real estate assets isapproximately 50%. Development in central cities has aunique characteristic because the efficiency indicator for
properties is relatively low inevitably as the assessed land
price is generally high.
However, assets in central cities are resistant to risks suchas economic fluctuations and have stable cash flows, so they
have the effect of stabilizing stock prices and reducing
capital costs. There is also the advantage of being a sourceof large unrealized gains and realizing huge profits when sold.
A city serves as a stage, where people and companies
gather, innovation occurs, and new industries and values are
created. Through entertainment and sports, many people get
exciting experiences. From there, the competitiveness of thecity will be enhanced, leading to economic and culturaldevelopment. In order to achieve these goals, it is essential
to develop central cities where many people, goods, money,
and information gather and intersect. I believe that this is also
an important social mission for developers and the reason forour existence.

❸ Existence of assets to be held
The Company’s policy is to maintain a good balance between
the three business models of “holding and leasing, development
and sales, and management” as a way to aim for “profit
growth” and “improved efficiency” while “maintaining a strong
financial standing.” I think that an appropriate image for the
profit split between Holding & leasing, Development & sales andManagement in our Company is about 40:40:20.
I am aware that there are those that argue that it is possible toimprove efficiency indicators such as ROE and maintain assets
under development and urban center assets on the balance
sheet by reducing the scale of assets we hold and stepping up
the scale of completed projects for sale. However, as I
mentioned earlier, our neighborhood creation approach is to“put people first” and develop neighborhoods that “get betterwith age.” This requires high-quality town management topromote evolution of the neighborhoods together with thepeople and communities. Also, to address social issues andpresent a vision of the future of the world through neighborhood
creation, we must conduct field tests in the neighborhoods wehave created. In other words, even after development, we needto maintain a system which allows us to take the lead and makeadditional flexible and agile investments. At the same time, weneed to continue to hold a certain amount of property which cancontribute to further increasing the value of the neighborhoods.

Characteristics of the Mitsui Fudosan Group’s Assets❶ Assets under development❷ Assets in central cities*2● Development from scratch is necessary● Innovation and excitement through theto create new value● No profit is generated during

development

integration of people, goods, money
and information● Relatively high cost of land
● Stabilization of cash flow andreduction of capital cost
● Source of future growth(2) Impact on management indicators
Based on this approach, the neighborhood creation we aim
for will continue to evolve and mature over a long period oftime. As a result, there are also negative aspects whenviewed only on a short-term time horizon with efficiency
indicators. In viewing our Group, we would hope the uniquecharacteristics of the assets of our Group, which plays therole of a long-term creator of neighborhoods, and how wecreate value through the utilization of such assets is given
due consideration.
❶ Assets under development
First, there are assets under development on our balance
sheet that have yet to generate profits. The ratio of assets
under development to the total real estate assets of theCompany is around 30%. Such assets do not generate

31Integrated Report 2022

profits and because they only add to the denominator but
ake no contribution to the numerator, they have a negative
impact on efficiency indicators such as ROE and ROA.
However, the very existence of these assets underdevelopment is the root source of solutions to social issues.
It is also the root source of growth that will generate future
profits through development. To achieve a sustainable
society by solving social issues through neighborhood
creation and give emotional experiences by creating newvalue, simply following what others created is not sufficient.
Therefore, it is necessary to create neighborhoods fromscratch, including power systems and infrastructure. To doso, developers require a certain amount of assets underdevelopment in their balance sheets to fulfil their social
mission and purpose.

● Large unrealized/realized gain

Ratio to real estate assets*1

Ratio to real estate assets*1

Approx. 30%

Approx. 50%❸ Assets to be held
● Continued possession based on theconcept of getting better with age,leading to the evolution of theneighborhoods● Securing the freedom for additional

investment and demonstration
experiments● Necessary to control the balance sheet

Holding & leasing:
Development & sales:Management

40:40:20
Conceptual image of profit structure● Balancing social and economic values

Goals● Pursuing a good balance between

growth and efficiency● Appropriate D/E ratio of around 1.2

to 1.5

Operating income

EPS increase rate

Around ¥350 billion

7% or more/year(around 2025)(VISION 2025 Period*3)

ROA target

ROE target

Around 5%

Around 8%*1 Real estate assets = Fixed assets, real property for sale, etc. *2 Central city assets = assets in the three wards of central Tokyo and New York, USA *3 Assumes the average of VISION 2025 periods after FY2021.

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32

Value Creation Strategy(3) Aiming for management that fuses “social value” and “economic value”
It is very important that we consistently meet the expectationsof our investors who have taken risk in investing in the
Company, through constant management efforts, including
improvement of management metrics. However, I don’t thinkit’s a matter of simply showing positive numbers on our
financial reports. In the age to come, it will be important to go
beyond simply superficially tracking financial indicators, and toengage with investors on our corporate philosophy to ensurethat they understand the underlying implications of the financial
figures which are backed by our purpose and social mission.
Our Group will continue to promote management with acomprehensive view of “increasing social value,” “sustainablegrowth,” “improving efficiency,” and “maintaining financial
soundness,” from a long-term perspective. Our social mission
is “aiming to solve social issues through neighborhood creation
to create a safe, secure and fulfilling society.” We define aselements necessary to achieve this: assets under development
at a level of approximately 30%, urban center assets at
approximately 50% and an appropriate debt/equity ratio of
between 1.2 to 1.5 times. At these levels, ROA and ROE
should be around 5% and 8% respectively. Based on theabove, we aim to achieve an annual EPS growth ratio of 7% ormore on a sustainable basis. With this framework, we will

Enhancing Shareholder Returns

manage the Company with the twin goals of creating both“Social Value” and “Economic Value.”
Under the “ ” logo principles the Group aims to create
thriving neighborhoods that bring people together, where newvalues are created and where the interaction of people
generates innovation. To achieve this, we must enhance ourcorporate value in fulfilling our purpose. We will continue toengage in dialogue with investors to share our long-termvalues, and to contribute to a sustainable society.
Outlook
Operating income (left axis)

Net income (left axis)

EPS (right axis)(Billions of yen)

(Yen/share)

400

350.0

300
232.6
200
148.1

172.5

100

0

186.0

100.1

245.9

262.1

280.6

200

117.7

150

244.9

202.4

131.8

300.0

203.7

155.8 168.6

250

176.9 190.0

183.9

100

129.5

50

59.4 76.8
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(FY)

Around2025

2 Television Center(London, completed
in 2018)

TOKYO MIDTOWN HIBIYA(Tokyo, completed in 2018)

Nihonbashi Takashimaya Mitsui Building(Tokyo, completed in 2018)

Nihonbashi Muromachi Mitsui Tower(Tokyo, completed in 2019)msb Tamachi (Tower S, Tower N)(Tokyo, completed in 2018 and 2020)

Toyosu Bayside Cross Tower(Tokyo, completed in 2020)

Creating a mixed-use neighborhood in Japan and overseas

0

As an executive of a business, I strongly recognize that clearlysetting out a stance of ensuring stable and continuous returns is of
the utmost importance to the shareholders who support the Company from a long-term perspective. This is evidenced by our trackrecord of progressively maintaining and improving our dividends
consistently over the past 20 years, even when net income
declined. We are firmly committed to maintaining this stance.
Recently, we were able to confirm a recovery from COVID-19,
an increased confidence in our ability to generate cash, theability to maintain a good balance between equity and profit
growth, and to maintain financial soundness while continuing toinvest for growth. As a result, we chose to enhance shareholder
returns, targeting a total shareholder return ratio of around 45%.
Based on a dividend payout ratio of approximately 30%, weincreased the annual dividend per share from ¥44 to ¥55. At thesame time, we announced a share buyback program of ¥30
billion, bringing the total shareholder return ratio for fiscal year
ended March 2022 to 46.6% of profit attributable to owners ofparent. In addition, the forecast for the dividend per share wasincreased by ¥5 to ¥60 from ¥55 for the fiscal year ending March
2023, with a target dividend payout ratio of 30% against the net
income target of ¥190 billion.
Compared with our peers, our Group has an abundantdevelopment pipeline in overwhelmingly diverse asset classes.
Going forward, we will continue to pursue business growth
based on a good balance of “Holding & leasing, Development &sales and Management” targeting ¥350 billion in operating
income, as announced in VISION 2025. We will do this throughthe growth of leasing profits as a result of completing newproperties, stable development profit contributions owing toasset turnover in each fiscal year, and increased profits frommanagement over the medium to long term following property
disposals. To ensure investors will continue to hold highexpectations for the Group’s growth and to reward them for theirsupport, we aim for a stable and continuous increase individends linked to sustainable growth.

Basic Approach to Shareholder Return

A Stance of Maintaining Stable and Continuous Returns
Stable dividends and flexible repurchases of our Company’s shares andour record of having consistently maintained and improved dividends

Dividends per Share/Profit Attributable to Owners of Parent
Profit attributable to owners of parent (left axis)

Dividends per share (right axis)(Billions of yen)

(Yen)

60 yen

200

60
50

160

40

120

30
80

20

40
0

10
2001

2005

2010

2015

0

2020 2022(FY)

Strengthening Ratio of Total Shareholder Return*Identifying a Total Shareholder Return Ratio of Around 45%(In the past, a total shareholder return ratio of around 35% was targeted)* Revised in May 2022

Total Dividends, Total Amount of Treasury Stock Acquired, and Total Shareholder Return Ratio
Total dividends (left axis)

Total amount of treasury stock acquired (left axis)

Total shareholder return ratio (right axis)

(%)
100

(Billions of yen)

100

30.0

80
60

15.0

16.0

25.0
15.0

40
20

25.2

25.5

0

29.6
2015

33.5
2016

35.0

35.1

36.9

39.5
2017

43.2
2018

42.8
2019

80
60

44.2

46.6

42.3
2020

52.5
2021

40
20
0

(FY)

In Closing (Together with Our Stakeholders)

55 Hudson Yards(New York, completed in 2018)

Bunkyo Garden Gate Tower(Tokyo, completed in 2020)

Social value(Achieve a Sustainable Society)33

Integrated Report 2022

Otemachi One(Tokyo, completed in 2020)

TOKYO MIDTOWN YAESU(Tokyo, completed in 2022)

Economic value(Drive Sustainable Profit Growth)

50 Hudson Yards(New York, completed in 2022)

We are now in a transition period to a new post-COVID-19
era. At the same time, we are at a major turning point
regarding global climate change, and a power struggle
between democracy and authoritarianism. As environmental
issues, supply chain challenges, financial markets and otherfactors are all intertwined, it is essential to have amanagement perspective that brings long-term benefits to all
stakeholders on a global scale to address these issues.
So far, through neighborhood creation, the Mitsui FudosanGroup has made every effort to improve the sustainability ofhumankind and make people’s lives safe, secure and fulfilling.

Going forward, we intend to grow together with all of our
stakeholders by diligently tackling change and social issues
and converting them into opportunities. We will also continue
to engage with the capital markets. Through the promotion of
better management, we hope to strengthen our relationshipof trust with investors.
I ask you for your continued support.

Integrated Report 2022

34

Value Creation Strategy

We have also secured commitment lines totaling ¥400 billion tomaintain liquidity for emergencies. As part of funding actions in the“Group Action Plan to Realize a Decarbonized Society” that weformulated in last autumn, we issued green bonds of ¥80 billion in
July this year, the largest amount ever issued by a domestic realestate company. As such we are striving to diversify funding
sources as well. In addition, to prepare for exchange rate
fluctuations, we work to offset and reduce risks by using natural
hedges, mainly inoverseas businesses via fund procurement inlocal currencies.

Message from the CFO
We aim to achieve both growth andefficiency and further increase corporate
value via balance sheet control froma medium- to long-term perspective.

Wataru Hamamoto

Changes in Total Assets, Interest-Bearing Debt, Equity, and D/E Ratio

Managing Director,
Senior Executive Managing Officer

Total assets(left axis)

10,000Fiscal 2021 Business Results

Interest-bearing debt
(left axis)

Outlook for Fiscal 2022 BusinessIn fiscal 2022, while social and economic activities have been
increasingly normalized with infections under ongoing control,
we continue to expect COVID-19 to have an impact on the
hotel and resort business. However, taking into account therecovering business performance of retail facilities and Tokyo
Dome and including contributions from newly completed officebuildings, among others, we forecast revenue from operationsof ¥2,200 billion, operating income of ¥300 billion, ordinary
income of ¥260 billion and profit attributable to owners ofparent of ¥190 billion, all of which are expected to be record
highs. For shareholder returns, we are guiding for an increase
to the annual dividend per share of ¥5 from fiscal year ended
March 2022 to ¥60.

35

Integrated Report 2022

D/E ratio(right axis)

Balance Sheet Control froma Medium- to Long-Term Perspective(Times)

2.0

1.80
1.60

8,000

7,395

6,000

In fiscal 2021, although the COVID-19 pandemic situation
continued, compared with the previous fiscal year, there was arecovery in the retail facilities’ leasing business, growth inproperty sales to investors and an increase in revenues andprofits from the Repark car park leasing business and Rehouse(retail residential brokerage). For these and other reasons, werecorded revenue from operations of ¥2,100.8 billion,
operating income of ¥244.9 billion, ordinary income of ¥224.9
billion and profit attributable to owners of parent of ¥176.9
billion. Total assets on the balance sheet were ¥8,208.0 billion,
an increase of ¥466.0 billion from the end of the previous fiscal
year. Consolidated interest-bearing debt was ¥3,667.2 billion
and net assets were ¥2,913.7 billion. As a result, thedebt/equity ratio was 1.31 times and the equity ratio was
34.1%. Regarding shareholder returns, the annual dividend pershare was ¥55, and the total shareholder return ratio was
46.6% due to the decision to repurchase ¥15 billion worth ofshares on top of the already acquired ¥15 billion in shares.

Equity (left axis)(Billions of yen)

As the Group’s main businesses of real estate development
and neighborhood creation-oriented businesses are characterized by the heavy long-term use of the balance sheet, balance
sheet control from a medium- to long-term perspective isextremely important to achieve future earnings and profit
growth and improve efficiency. Specifically, we take a 5 to 10
year perspective, combining proactive growth investments withcost recovery through continuous asset replacement in awell-balanced manner. We manage the entire balance sheet
from a high level, through measures such as maintaining
financial soundness through appropriate management ofoutstanding interest-bearing debt and the debt/equity ratio.
Looking back on balance sheet assets over the five-year period
from the fiscal year ended March 31, 2017 to the fiscal year ended
March 31, 2022, total assets increased approximately 1.5 times
from ¥5,551.7 billion to ¥8,208.0 billion. This was mainly due tothe successful conclusion of growth investments including
successive completions of large-scale development projects in
Hibiya and Nihonbashi, and the consolidation of the Tokyo DomeGroup. While promoting growth investment, in recent years wealso engaged in asset turnover, such as selling Shinjuku Mitsui
Building, Iidabashi Grand Bloom and Nakanoshima Mitsui
Building to our sponsored REITs. Also, under the policy of
reducing strategic shareholdings, we are trying to maintain andimprove ROA by building a resilient asset portfolio.
The future external environment is expected to remainincreasingly uncertain, with inflation rising around the world due tofactors such as supply chain and logistics disruptions and supply
constraints, and emerging risks such as rising interest rates. In
such an environment, maintaining and building a sound financial
position is important for the stable continuation of business. For
this purpose, the Group manages its balance sheet by keeping
interest-bearing debt at about ¥4 trillion with a debt/equity ratio of
about 1.2 to 1.5 times. At the same time, to reduce risks related tofinancial market volatility while property development projects areunderway, we are taking measures such as raising the ratio of
fixed interest rate borrowings and long-term borrowings,
staggering repayment periods and maintaining our credit rating.

1.16

1.15

5,363

5,551

1.06
4,390

4,548

5,067

6,802

6,284
1.18

2,120

0

2,040

1,181

1,274

2012

2013

2,226

1,976
1,871

1,922

2,604

2,287

2,204

1,984

1.8

8,208

1.45

1.6
1.31

1.4
1.2

1.24

1.0

4,000

2,000

7,741
1.42

3,481

3,623

2,408

2,555

3,667

2,906
2,342

2,796

0.8
0.6
0.4
0.2

2014

2015

2016

2017

2018

2019

2020

0

2021
(FY)

Fund Procurement and Credit Rating Situation
Interest-Bearing Debt
Non-recourse – JPY

Non-recourse – Others

4.0%

11.0%

Corporate – Others
24.1%

Corporate – JPY
63.9%

Achieving Medium- to Long-Term Goals
and Enhancing Our Corporate ValueThe Group’s medium- to long-term growth targets areoperating income of about ¥350 billion (around 2025), annual
EPS growth rate of 7% or more (average up to 2025), and its
efficiency targets are ROA of around 5% and ROE of around 8%(both around 2025).
Achieving these goals will not be easy in a rapidly changing
external environment. However, we continue to see steadyresults from continuous investment in superior projects basedon a solid financial position as well as progress on ongoingprojects. As specific drivers of future profit growth, we expect tosee a recovery from the impact of COVID-19, mainly at hotels
and resorts and Tokyo Dome and normal operation and profit
contributions from large-scale, mixed-use projects (TOKYO
MIDTOWN YAESU and 50 Hudson Yards) which will becompleted in fiscal 2022. In addition, assuming about 30% ofassets under development and about 50% of central urban
assets relative to total real estate assets, with a debt/equity ratio
of about 1.2 to 1.5 times, we aim to further improve efficiency bypromoting continuous balance sheet control. (See p. 33.)
We aim to achieve future earnings and profit growth andimprove efficiency while staying abreast of the real estate cycle
and interest rate trends. We will maintain our long-term financial
strategy of investing selectively while being mindful of cost
recovery and cash flow, and promoting balance sheet control
with a focus on growth and efficiency. We believe this will allow
us to consistently generate returns in excess of our cost ofcapital; we remain committed to further enhancing corporate
value.

Interest Rate Situation
Consolidated
Japanese currency
Foreign currency

1.19%
0.63%
2.37%

* As of the end of FY2021

Outlook
Growth target

Ratio of Long-Term Debt
Around¥ 350 billion (around 2025)

7%

or higher/year (average for VISION 2025 period*1)

ROA

Around5%(around 2025)

ROE

Around8%(around 2025)

D/E ratio

Around

1.2–1.5 times

Operating income

Short-term

5.2%

Average Duration

6.02 years

Long-term
94.8%

EPS increase rate

* Excl. non-recourse, as of the end of FY2021

Efficiency target

Ratio of Fixed/Floating-Interest Debt
Floating

8.9%
Fixed

91.1%

* Excl. non-recourse, as of the end of FY2021

Credit Rating
Rating agency

Long-term

Short-term

Outlook

Moody’s

A3-

StableStandard & Poor’s

A

A-1

Negative

R&I

AA-

a-1+

Stable

JCR

AA

J-1+

Stable(VISION 2025 period*1)*1 Assumed after FY2021 during the VISION 2025 period (announced in May 2022)* As of August 4, 2022

Integrated Report 2022

36

Value Creation Strategy

Strategies Toward Realization of Decarbonized Society

Greenhouse Gas Emission Reduction Targets

See details of Mitsui Fudosan Group’s Reduction Targets forGreenhouse Gas Emissions here.
https://www.mitsuifudosan.co.jp/english/esg_csr/carbon_neutral/

Mitsui Fudosan Group’s Targets
Message from a Managing Director

40% reduction by FY2030 (vs. FY2019)

Aiming to achieve our goal of net zero
emissions by fiscal 2050, we will steadily
promote the “Group Action Plan to Realizea Decarbonized Society.”

Acquired SBT Initiative Certification for“1.5°C target”*2 Scope 1 + Scope 2: 46.2% reduction by FY2030 (vs. FY2019)(CO2 emissions)

Wataru Hamamoto

4.38 Mt-CO2

Managing Director
Senior Executive Managing Officer(In charge of sustainability promotion–related activities)

2.63 Mt-CO2

In accordance with the principles embodied by the“ ” logo—“coexist in harmony with society,” “linkdiverse values” and “achieve a sustainable society”—theCompany has actively undertaken efforts to enhancecoexistence with the global environment and thesustainability of society through neighborhood creation.
We believe that promoting our Company’s business willlead to sustainability initiatives which create social value.
Having society as a whole address climate change is apressing issue and a social responsibility of our Group,
which undertakes the construction and developmentof social infrastructure. Positioning decarbonization
initiatives as priority issues, in VISION 2025, our Group’s
long-term vision, we place “Reducing environmental
impact and generating energy” as one of goals to befocused on.
In addition to initiatives to address climate change suchas setting greenhouse gas reduction targets, ourendorsement of the TCFD, joining the RE100 initiativeand receiving certification under the SBT international
initiative, in November 2021 we boosted the Group’s
reduction target and formulated the “Group Action Plan
to Realize a Decarbonized Society” aimed at theachievement of our long-term goal.
Under our Group Action Plan, our Group improves
environmental performance and promotes “green

FY2021 results

electricity” in common areas at our owned and operated
properties. We also promote initiatives such as stably
securing renewable energy, and reducing CO2 emissions
during construction by working with construction
companies and other manufacturers. We also provide
green electricity supply services to meet the requestsof tenants. This initiative, which addresses customers’
own decarbonization initiatives while differentiating ourbusiness, truly constitutes business development thatlinks the social value of achieving a decarbonized society
with the economic value of securing a competitive
advantage for companies.
In April 2022, the Sustainability Promotion Division*1
was established to accelerate ESG and SDGs initiatives,
including action plans. In fiscal 2021, the first year of theGroup Action Plan, we achieved an average reduction ingreenhouse gas emissions of 6% for three years fromfiscal 2019 to fiscal 2021 (compared with fiscal 2018 to
fiscal 2020) and a 4% reduction for a single year(compared with fiscal 2019). Also, we have been
selected for the CDP 2021 Climate Change A List of
top-ranking companies in the climate change category.
Based on the Group Action Plan, combining ourstrength with that of various stakeholders, we willcontribute to efforts aimed at the decarbonization ofsociety as a whole.

0 t-CO2

Sustainability Promotion
Framework*1

President

Executive Management
Committee-40%
Target CO2 emissions
FY2019FY203037

Integrated Report 2022

Sustainability Promotion Division
Sustainability Promotion
Department

Policy planning and management;
corporate management of action plans

Environment and Energy Service
Department
Corporate energy management-100%

3-year average*3-6%Comparison between FY2019 toFY2021 and FY2018 to FY2020

Improve environmental performance of properties
Utilization of renewable energy and greening ofelectricity
Expansion of mega-solar
Reduction of emissions during construction,
offshore wind & new technologies, etc.

FY2050*3 The majority of our Group’s greenhouse gas emissions (total of Scope 1, 2, and 3) are from the emissions at the time of construction (Scope 3-1, 3-2), which are recorded at the time of completion of buildings for lease and at the time of sale of buildings for sale, as well as emissions from future operations until the demolition of buildings for sale (Scope 3-11). These emissions vary
greatly depending on the increase or decrease in the number of properties completed or sold in each fiscal year, so it is not possible to verify the reduction effect only by the emissions in asingle fiscal year. Therefore, our Group has decided to verify the progress of emission reductions by comparing the average emissions over a three-year period, not just a single year.

Progress of the Group Action Plan
to Realize a Decarbonized Society
Action Plans
Action Plan 1

New properties: Realize ZEB/ZEH-level environmental performance for allproperties
Existing properties: Create on-site renewable energy for renovation ofproperties to improve energy efficiency of properties

See here for details.
https://www.mitsuifudosan.co.jp/english/esg_csr/kpi_progress/

Major Progress in Fiscal 2021

New buildings: In principle, all new buildings constructed after the “Decarbonization
Action Plan” achieved ZEB/ZEH-level environmental performance
Existing properties: Implemented renovation for improved energy-saving performance asneeded (LED adoption work at Kasumigaseki Building, Grand Tokyo North Tower, etc.)

Action Plan 2

By fiscal 2022, achieve greening of electricity consumption in common areas ofproperties owned and areas used by the Group in 25 properties in the Tokyo
metropolitan area
By fiscal 2030, achieve greening of electricity consumption in common areas ofproperties and areas used by the Group
Action Plan 3

Provide Green Menu to tenants and buyers
Action Plan 4

Develop mega-solar with a total output of approximately 175,000 kW by fiscal
2030

Develop tools to accurately grasp CO2 emissions during construction
Require submission of a reduction plan by construction companies, etc.

ESG Promotion Committee

To accelerate ESG and SDG initiatives, including further
strengthening the framework for promoting the “Group
Action Plan to Realize a Decarbonized Society,” theSustainability Promotion Division was established.

by FY2050

CO2 emissions
without action

Action Plan 5
Board of Directors

P.74

Net Zero

Action Plan (Other)

Acquire external certifications
Introduce Internal Carbon Pricing (ICP) System
Establish system for promoting action plans

Concluded a comprehensive agreement with electricity retailers in three major
metropolitan areas of TEPCO, Chubu Electric Power, and Kansai Electric Power

Concluded an agreement for introducing green energy: A total of 20 cases

Five power plants are in operation (Tomakomai, Hachinohe, Sanyo-Onoda, Oita, andOmuta)
Formulated “GHG Emissions Calculation Manual” to calculate the amount of CO2
emissions during construction based on the “method of accumulating actual results ofmaterials used” (News Release on March 31, 2022)
Prepared to participate in the GRESB (for the operations of existing properties)
A total of 30 properties acquired external certifications (7 properties in FY2021)(Main properties)
・MFLP Funabashi III: CASBEE - Building (New) S Rank
・Nihonbashi Takashimaya Mitsui Building: DBJ Green Building Certification 5-Star
Introduced ICP in newly developed properties
Newly established Sustainability Promotion Division*1

Integrated Report 2022

38

Value Creation Strategy

Diversity and Inclusion Strategy

Mitsui Fudosan Group’s Quantitative Goals for and Progress in Female Participation
Mitsui Fudosan Co., Ltd. (non-consolidated)

Message from a Managing Director

Women in Management Positions Ratio

Based on the Diversity andInclusion Declaration,
the entire Group promotes
the initiative.

25(Target)Ratio of female
hires

Quantitative Goal

FY202140%

40.5%

Return rate fromchildcare leave

Quantitative Goal

FY2021100%

100%

Number of paid
leave days taken(per year)

Quantitative Goal

FY202114

15

15(Target)1010Managing Director,
Executive Vice President(in charge of personnel)

5

A human resource strategy is vital in promoting
initiatives set forth under our VISION 2025 long-termplan and creating values. The asset of humanresources is the force that drives us to continue
creating new value as a real estate developer.
Since our founding, we at Mitsui Fudosan havedemonstrated a “spirit of enterprise” and willingness toflexibly and tenaciously take on challenges that wehave inherited and nurtured as our DNA and have beenoffering varied and innovative solutions and services forbusiness and living.
We improve employees’ professional knowledge andcapabilities through giving them diverse on-siteexperience, enhancing their ability to create added
value. Through this, diverse values come together in a
spirit of mutual respect, transforming into a driving
force as a team. Within this process, addressing every
individual employee and preparing an environment foraction forms the foundation of our human resource
management.
Customer-centered management is an immutablebasic strategy in our VISION 2025. The businessenvironment surrounding our Company is changing at
an ever-faster pace and the diversity and individualityof the customers to whom we provide services iswidening. Accompanying changes in the environment
are emerging social issues that cannot be solved
simply within the framework of the conventional realestate industry.

To respond flexibly to such drastic changes andcontinue to develop and grow our business by quickly
reading changes in customers’ lifestyles and values
and by proposing solutions, it is vital that we ourselves
accept diversity. We face demands to achieve activeroles for diverse human resources by accepting
various values and ideas, having mutual respectamong individual employees and embracing diversity
while nurturing ingenuity that is rich in a pioneering
spirit.
Based on this thinking, we positioned the promotionof diversity and inclusion as a key management
strategy and formulated our Diversity and Inclusion
Declaration and Initiative Policy, which we are
implementing throughout the Group. The Group has
also set the active participation of women as animportant theme in its diversity and inclusion initiatives,and is undertaking varied related measures underquantitative and qualitative activity plans.
From fiscal 2022, we have started the “Mitsui
Fudosan Group Get Connected and Grow Project,”which holds Group joint training and networking
events. In addition to gaining confidence in their skills
and abilities, by holding joint events within the Group,
creating networks and role models among female
employees across companies are also aimed for.

For more detailed information about the Company’s Diversity andInclusion, refer to the following link.
https://www.mitsuifudosan.co.jp/english/esg_csr/society/02-5.html

For more detailed information about the Company’s Promotion of
Active Roles for Women, refer to the following link.
https://www.mitsuifudosan.co.jp/corporate/hrm/women/(Only available in Japanese)

Integrated Report 2022

20

20

Yasuo Onozawa

39

Other Quantitative Targets

（％）

0

2.5
1.5 1.7 2.0
2015

2016

2017

2018

3.3

2019

4.5

2020

6.8
5.7

2021

2022

2025

2030 (Years)* Figures as of April 1 of each year

Model Companies for the Promotion of Active Roles for Women

Women in management positions ratio

Sunlife Creation Co., Ltd.

Ratio of female hires
Return rate from childcare leave
Ratio of paid leave taken
Women in management positions ratio

Mitsui Fudosan Retail Management Co., Ltd.

Ratio of female hires
Return rate from childcare leave
Ratio of paid leave taken
Women in management positions ratio

Mitsui Fudosan Hotel Management Co., Ltd.

Ratio of female hires
Return rate from childcare leave
Ratio of paid leave taken

Quantitative Goal(s)FY2021

—
—
100%
70%
FY2025 20%
FY2030 25%

69%
69%
75%
71%

—
100%
80%
FY2025 15%
FY2030 20%

60%
94%
82%

—
100%
70%

72%
77%
77%

17%

14%

* Women in management positions ratio is as of April 1, 2022

External Evaluation: Selected as a Nadeshiko Brand for the First Time as a company
that has outstanding initiatives to promote women’s active participation in the workplace
The Company’s various efforts to promote women’s active participation in the workplace such as theinitiatives for reforming managers’ attitudes and mindset and establishing a promotion system wererecognized. And in fiscal 2021, the Company was selected for the first time as a Nadeshiko Brand, an award
that is jointly hosted by the Ministry of Economy, Trade, and Industry and the Tokyo Stock Exchange, as acompany that has outstanding initiatives to promote women’s active participation in the workplace.

Integrated Report 2022

40

Value Creation Strategy

closely with our everyday lives, and makes us feel that there is a bright
future ahead.
Nogimori When I was appointed as an outside director in 2017, I was
surprised to see that—in contrast with the real estate agency andsales activities that I had experienced myself—Mitsui Fudosan works
together with a wide range of stakeholders to conduct businessbased on large-scale urban development. I also feel that there is aculture of actively attempting new challenges. This is also reflectedin the Company’s corporate governance. From the time I was
initially appointed, I already had the impression that it was an open
company, but I feel that the degree of openness has progressed evenfurther in the past few years. In addition to his role as chairperson at
Board meetings, the Chairman of the Board of Directors conducts
proceedings in such a way as to enable active discussions, such as
by asking questions himself and encouraging other directors to ask
questions. There are also many occasions where the President gives
a supplementary explanation after the initial explanation of a proposal,
which also shows that senior management is taking responsibility inworking to enhance corporate governance.
Kawai I think that the opinions of outside directors are also well
represented in the agenda items discussed at Board meetings.
We work actively to make improvements in responding to opinions
raised in evaluations for improving the Board’s effectiveness, andI think that we have created a positive cycle in this regard. The

Outside Director Dialogue

Masafumi Nogimori

Eriko Kawai

Outside Director

Outside Director

Compensation Advisory Committee Chairperson

Compensation Advisory Committee member

Nomination Advisory Committee Chairperson

Nomination Advisory Committee member

We hope that Mitsui Fudosan will continue to drive society
and the economy through the real estate business,
as a company that anticipates contemporary needs.
Issues and initiatives to improve the effectiveness of the Board of Directors
What are your impressions regarding the atmosphere and effectiveness of the Board of Directors?
Nogimori My impression is that the Board of Directors has an open
atmosphere, but is also well disciplined. It has been effectively
developed as a forum for highly transparent and lively debate,
but also with an appropriately tense and serious attitude toward
management. I, myself, have been able to speak plainly and openly
with the other members.
Kawai I became an outside director in June 2021. Although I had
no prior experience in the real estate industry at the time of myinitial appointment, I have been able to deepen the level of myunderstanding thanks to the clear and careful advance explanations
given before Board meetings. The Board ensures sufficient time for
Q&A, and questions are answered with sincerity, not only by those

41

Integrated Report 2022

opinions of outside directors are incorporated into the Company’s
management activities, as opinions given from the perspectives ofexperts and objective management. I think that all of the outside
directors—myself included—are sufficiently fulfilling their roles andfunctions as members of the Board.
Nogimori Yes, as you say, improvements with regard to effectivenessevaluations are definitely progressing. We also sincerely approachsocial trends, as well as requests and opinions from externalorganizations, with the attitude of changing what is necessary within
the Company.
Kawai Mitsui Fudosan has a stance of ensuring that any matterswhich should be dealt with—such as requests for disclosure of its
corporate governance code or non-financial information—are handledappropriately, even in the long term, after properly considering thenecessity of its responses, and I raCompany highly in this respectwith responsibility for each specific area, but also by the President,
Chairman and other key members of the Company. Having an
atmosphere of seriously accepting the objective opinions of outside
directors is also key in terms of ensuring the Board’s effectiveness.
With regard to redevelopment projects and other projects reviewed
at Board of Directors meetings, we have been given sufficient
opportunities to inspect development areas and properties,
allowing us to deepen our understanding of Mitsui Fudosan’s urban
development efforts. Through these inspections, I have come tofeel that Mitsui Fudosan’s approach to urban development is aninnovative one that combines both real and the digital methods. It isan exciting business that sparks our interest because it is aligned

Issues and initiatives relating to decarbonization
In November of last year, we formulated the “Group Action Plan to Realize a Decarbonized Society.”
How do you rate this initiative and the discussions that took place during its formulation process?
Nogimori With growing interest surrounding decarbonization, Mitsui
Fudosan has also been working quickly to work toward achieving
decarbonization. When formulating the “Group Action Plan to Realizea Decarbonized Society,” the Board of Directors held numerous
discussions on its contents, and promptly announced details of theplan to the public. Since then, we have been rapidly implementing
various measures, such as in acquiring third-party certifications
relating to decarbonization and establishing a dedicated headquarters
on sustainability, with the aim of enhancing the Company’s internal
structure for driving its efforts toward decarbonization. We havealso been actively communicating details of these measures to theoutside, and I think that the Company has been successful in driving
its approach to initiatives on decarbonization.
Kawai In the early 2000s, when I myself was in Switzerland, I
had the impression that Japan was lagging behind Europe withregard to environmental initiatives. But now there are very urgent
calls for commitment and corporate response to decarbonization.
Mitsui Fudosan’s decarbonization initiatives—including aspects ofdecarbonization that are unique to the real estate business—were
explained in a very careful, clear and easily understandable mannerat Outside Officer Meetings, before subsequent discussion by the
Board of Directors. Through our discussions, I have also been able
to deepen my understanding of extremely complex future forecasts.

Nogimori We have set proper numerical targets, but especiallywithin the major theme of urban development we need to involve
stakeholders from outside the Company. As a real estate company,
Mitsui Fudosan is in a key position as the central driving force forprojects in the field of urban development. But as a wide range ofstakeholders from the construction industry and its contractors work
together as a team to implement such projects, it is not easy for theCompany to instill and implement its approach to decarbonization
among all stakeholders.
Kawai While I believe that the construction industry and others arealso working actively to resolve environmental issues, if they makeefforts to achieve Mitsui Fudosan’s decarbonization targets then there
are some parts that will also lead to cost increases, and there is apossibility that those increases may be passed on to end users. It isa difficult problem. Will the Japanese people, who have a tendency
to emphasize economic rationality, see their way to paying extra forthe added value of care and consideration for the environment? But I
regard Mitsui Fudosan highly for its efforts in this area.
Nogimori It is true that in Japan there is a strong sense of pursuingeconomic rationality, but I think in the end it is necessary for us all torecognize the value of consideration for the environment, even if ittakes time. I think that it is necessary, not for Mitsui Fudosan to do
this alone, but to take it in the direction of creating a social trend.

Integrated Report 2022

42

Value Creation Strategy

Issues and initiatives regarding women’s empowerment/female participation
Mitsui Fudosan has made a “Diversity and Inclusion Declaration.” In terms of initiatives to promote empowerment
and active participation for women, we have set targets for increasing the percentage of female employees in managerial positions to 10% by 2025 and 20% by 2030, and for increasing percentage recruitment of women to 40%.
How do you rate the progress of this initiative?
Kawai I do rate the fact that Mitsui Fudosan’s top-level
management is committed to promoting diversity and inclusion
and has set numerical targets. In particular, they have positioned
female participation and advancement in the workplace as a
key initiative and are developing various strategies. For example,
working groups composed of female employees are identifying
issues relating to female participation, and I get the impressionthat the Company is responding to the issues identified properly,
such as conducting training sessions on unconscious bias aimed
at raising the awareness of superiors and the workplace as awhole. The Company is also engaged in other initiatives such asencouraging male employees to take childcare leave, and I believethat in promoting diversity and inclusion they will focus not only on
women, but work toward creating a working environment where
it is easy for all employees to work, regardless of gender. Work at
Mitsui Fudosan also requires employees to enjoy life as consumers,
and to be creative. Everyday experiences such as raising children,
traveling, shopping and dining out at restaurants can lead to agreater understanding of consumer needs, and creative ideas may
take shape in various scenes and situations in daily life. Thinking
about it that way, in the real estate industry—which provides
places for people to live their daily lives—it is also very important

Masafumi Nogimori
Graduated from the Faculty of Pharmaceutical Sciences, The
University of Tokyo, then joined Fujisawa Pharmaceutical Co.,
Ltd. (now Astellas Pharma Inc.). Served as President and CEO of
Astellas Pharma Inc. from 2006, and Chairman from 2011. Served
as Chairman of The Federation of Pharmaceutical Manufacturers’
Associations of Japan (FPMAJ) from 2014 to 2016, then retired
from Astellas Pharma Inc. in June 2016. Was appointed as an
outside director of Mitsui Fudosan in June 2017.

43

Integrated Report 2022

to consider things from a female perspective, and it’s not unusual
for more women to be playing an active role. As we continue toadvance various measures related to women’s empowerment, I
would like Mitsui Fudosan to meet its numerical targets.
Nogimori Even within the real estate business, the kind of urban
development projects that Mitsui Fudosan is involved with are
wide-ranging, so I think that there must be many opportunities
for women to play an active role. At the same time, the numberof female employees in mid-level positions within the Company isquite low, due to the fact that the number of women being hiredin the real estate industry in the past was low in general. Given
these circumstances, I do not think that Mitsui Fudosan’s target
for percentage of female employees in managerial positions is
low by any means. But in order to achieve it, I do believe that it will
be necessary to continue to reform awareness regarding female
participation. With regard to the target for female recruitment
ratio, the image of the industry as a whole and of Mitsui Fudosan
has improved in comparison with the past, and the Company
is relatively popular among students seeking employment. So,
I believe that it will not be difficult to achieve the target ratio
for recruitment of female employees while hiring good humanresources.
Kawai Support for female employees is also generous, and it
seems that female managers now also have division heads (aside
from their own direct superiors) of divisions that relate to them as
mentors or sponsors who follow up with consultations and advice,and take them to places that lead to opportunities for growth as
human resources, such as exchanges with other companies.
Nogimori Regardless of gender, I think that it is necessary to havediverse experiences, including exchanges with those outside theCompany, in the sense of investing in people. When we talk about
diversity, the focus tends to fall on women, but we must also work
to promote diversity in the same way, from perspectives otherthan gender. Mitsui Fudosan is a company where employees getalong well together. In one sense, there is an aspect of uniformity
among employees, and I think that there are many situations inwhich work is carried out based on mutual chemistry or unspoken
understanding. There is no need to eliminate this, but to promote
diversity and inclusion I think it is necessary to change the way inwhich we communicate.
Kawai By improving communication among employees, problems
such as failure of mutual understanding will decrease. In terms ofmanagement, a uniform organization may be more efficient, but
creating innovation requires employees who have grown up in
different environments, with different and diverse opinions and waysof thinking.

Nogimori Even looking at internal PR, there are articles where
the President stands at the forefront, boldly committing to theCompany’s diversity and inclusion declaration. I think that employees
seeing such content will feel the importance of the issue, so it isimportant to send out such messages from the top.
Kawai Of course, I agree that the attitude of top management isimportant. In addition, the awareness of the Company as a whole—including middle management—must also change.

Further breakthroughs as a global corporation
In VISION 2025, we set the goal of increasing the percentage of consolidated operating income accounted for by overseas
business operations to around 30%. What is your assessment of the Company’s current state of global expansion?
Nogimori I get the impression that Mitsui Fudosan’s global expansion
is progressing steadily. “Global” is not as easy as it sounds. The realestate business is rooted in the land. Just because a company is aheavyweight in Japan, it does not mean that it can suddenly engage
in business from greenfield sites overseas. In real estate transactions
and real estate development, we often cooperate with partners.
At the same time, however, in development projects that require
our own unique know-how—such as LaLaport—we may proceedinternally, without partnering with local partners. I think this is a very
good strategy.
Kawai I also approve of this strategy. When collaborating withoverseas partners, we can also expect to absorb know-how—suchas environmentally friendly construction expertise—from advanced
overseas developers into the Company.
Nogimori From the perspective of overseas expansion areas, there
should be business opportunities rolling around in every country in theworld. But different countries pose different risks, so I don’t think there
is any need for the Company to rush out into every part of world.
Kawai In contrast with securities investments, investments in thereal estate business cannot be withdrawn immediately, so it isnecessary to firmly assess the geographical, political and economic
stability of the region, and invest from a long-term perspective. Given
that the global situation changes in various ways, as exemplified
by the invasion of Ukraine by Russia, I think it is safer and moresensible to expand into developed countries with low risks, even if
the profit margin is a little lower. Emerging countries are expected toexperience economic turmoil due to issues such as food problems,interest rates and currency depreciation. Even if the returns are high,the risks are also correspondingly high, so expansion into suchcountries calls for difficult management decisions.
Nogimori As you say, many of Mitsui Fudosan’s business operations
are in developed countries. Whatever countries we expand into,

Eriko Kawai
Obtained her bachelor’s degree from Harvard University (USA)and her MBA from INSEAD (France) before working at several
corporations in Europe, including the Paris branch of McKinsey &Company. After subsequently working at international organizations
such as The Bank for International Settlements (BIS) and theOrganisation for Economic Co-operation and Development (OECD),
she now holds positions as Professor Emeritus at Kyoto University
and specially appointed professor to the Social Innovation Center(SIC), Graduate School of Advanced Integrated Studies in Human
Survivability (GSAIS), Kyoto University. She became an outside
director of Mitsui Fudosan in June 2021.

I think that the target cities will be mainly the capitals of thosecountries. There are not many overseas examples of development
based on concepts such as those seen in Mitsui Fudosan’s urban
development projects. I think that if we proceed with overseas
expansion then in the future overseas real estate developers will
actually begin to approach us themselves.

Expectations for Mitsui Fudosan
Kawai Although Mitsui Fudosan is a private company, it is also
a company that engages in large-scale urban development froma long-term perspective, and I believe that it has a great impact
on Japanese society. I have high hopes and expectations for
Mitsui Fudosan as a company that is ahead of its time, actively
incorporating new technologies such as high-rise buildings
made of wood and working to create urban environments thatare also friendly to the global environment.

Nogimori I also believe that the urban development projects
in which Mitsui Fudosan engages are works of national
development. In that sense, I think that we are doing a very
rewarding job. Further, I believe that we have the power toactualize a large-scale vision of how to move the world throughthe real estate business, with an eye on the future.
Note: This interview was conducted while taking COVID-19 infection prevention measures.

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44

Value Creation Strategy

CLOSE UP

Digital Transformation Strategy of Mitsui Fudosan Group

Result 1

Positioning of DX promotion plan in our Company
Long-Term Vision: VISION 2025
Using technology to innovate
the real estate industry itself

Building a sustainable
society throughneighborhood creation

Successful Examples of DX promotion

Evolving into a global company

Business Transformation

Result 2

promoting DX in all businesses with the aim of
improving customer satisfaction and solving social issues● Releasing new businesses that go beyond the boundaries of existing
businesses one after another● Promotion of system renewal and business reforms are ongoing so

Major business transformation projects

Main projects for workstyle reform

2019

2020

2021

2
4
4

5
8
4

11
12
6

Releasing new services
Main projects under development
Main demonstration experiment projects

2020

as to encourage diverse work styles and make customers and our
process smart

2019

2020

2021

Releasing new systems

4

4

5

Main projects under development

7

6

7

Work efficiency improvement time due to system renewal

Our main membership organizations
Oct. 2022

13.14

13.64

million people

DX V I S I O N 2 0 2 5

Workstyle Reforms● Simultaneously

million people
Retail facilities:
Approx. 12.49 million people
Hotels: Approx. 540,000 people

Total for last 3 years

230,000 hours,
Approx. 120 people*

Approx.

* Converted to 1,920 hours/person per year (8 hours × 20 days × 12 months)

Housing Loop members:
Approx. 280,000 people
Office buildings (Work Styling members):
Approx. 220,000 people

Business
Transformation

Workstyle
Reforms<Customer orientation andsolving social issues><Improving productivity
and employee satisfaction>

Office buildings (& Life-Biz):
Approx. 110,000 people

Result 3● Currently promoting cyber security measures essential for promoting DX and facilitating smooth system operations, etc.

BPR

Smart City/
Property

Omni
ChannelReal Estate
as a Service

Activity Based Working

Business Process
Re-engineering

Making towns andfacilities comfortable
and convenient bydigitalization

Integrating real anddigital customer
contact points

Offering service
provision beyond
providing space

Active ways ofworking that are notlimited by location

Reforming existing
businessflow/systems

Practical
exampleUsing robots at TOKYO
MIDTOWN YAESUABWPractical
examplePromotion Bases

In-house system cloud rate (for Mitsui Fudosan Co., Ltd.)

2018

2020

2021

Approx.

Approx.

Approx.

64%

Realizing operational efficiency andmobile work by migrating mission-criticalsystems to full cloud computing

80%

94%

External Evaluations

Promotion Bases

Awards received
Selected as DX Stocks 2022

Cyber Security

Data Utilization

Real Estate × Digital
Human Resource
Development

Continuous
evolution of groupsecurity

Utilization ofcustomer andbusiness data

Company-wide IT
literacy and the driving
force of the DX Division

Advancementof Group
Systems

ModernDevelopment

Standardization/
efficiency

Cheap, fast, goodand permanentdevelopment

Evaluation point: Building a DX promotion system,
deepening the services of existing businesses
accordingly and creating new services and new
businesses

Winning “2021 IT Promotion Award(Social Issue Solution Area)”
Evaluation point: Kashiwa-no-ha Data Platform
Initiative

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Integrated Report 2022

DX Stocks 2021
Winning “Digital × COVID-19-Countermeasures Company(Resilience Category)”
Evaluation point: “Ensuring ongoing operations by utilizing DX”
under the COVID-19 pandemic

Winning “2020 IT Award (Management Area)”
Evaluation point: Promoting work style reforms byrenovating the decision-making and accounting
systems via full cloud computing

Integrated Report 2022

46

Value Creation Efforts and Base Building|

Value Creation through BusinessLife Science Initiatives

Special Feature

Practical example

Research and development in the field of life science has never been as important as
in recent years, and the life science clusters, where many companies and employers inthat field reside, are rapidly growing on a global scale. By promoting the life sciencebusiness in Japan and overseas, the Company will contribute to creating
innovation and bring about a healthy longevity society.

What Is a Life Science Cluster?

Life science is a field that is expected to contributeto the areas of “live better,” “eat better,” and “have abetter life,” which are directly connected to people’s
lives, such as overcoming diseases that plaguehumankind and solving food and environmental
problems. Facing a declining birthrate and aging
population and resulting increase in medical costs,
developed countries are actively investing in researchand development related to drug discovery andmedical technology. Especially in recent years, due
to the spread of the COVID-19 pandemic, researchand development in this field has become increasingly important.

● Universities, public research institutes, hospitals,

and healthcare companies (pharmaceutical andmedical device manufacturers, etc.) engaged in
R&D activities● Venture capital firms and government agencies
that invest in research and development
As such, an area where players of Life Science
concentrate.
The interaction among these players serves toaccelerate the commercialization of technology
seeds, and a mechanism for promoting continuous
innovation is created.

Life Science Cluster

Medical institution

Large company

CapitalVenture capital

Public research
institute

Practical
application oftechnologies

Venture company

San Francisco

San Diego

Properties developed by Mitsui Fudosan

BostonInnovation Square Phase II

Approx. 500 life science companies are located inthis area

Leased area Approx. 25,000 m2

Approx. 90,000 people are engaged in life
science–related industries

Uses

Lab & Office

Schedule

Construction started in 2020and completed in 2021

Live better
Eat better

Ceaselessinnovation

BostonThe U.S. is known as the global leader in the Life Sciencefield as it has created a mature market for the lab & officebusiness to help support such research. In particular,
Boston, San Francisco and San Diego have been recognized
as the top three Life Science clusters in the U.S. for their size
and amount of investments, and for being home universities
that are highly regarded universities in the nation, and arehighly valued not only within the country, but globally. The
Company participated in Boston’s “Innovation Square PhaseII” that commenced in 2019 and this got our Leasing Lab &Office business into full swing. Currently, the Company isparticipating in the Torrey View and Mission Rock Phase I
projects. Participation in these projects means that Mitsui
Fudosan is now operating the Lab & Office Business in the
Top 3 Life Science clusters of the U.S.

[Major universities and research institutes]
Harvard University, Massachusetts Institute of Technology,
Broad Institute, Whitehead Institute, and others

Site

Community

Lab & Office Business in the United States

Promoting the Lab & Office Business in All of the Top 3 Life Science Clusters of the U.S.

Importance of Research andDevelopment in the Life Science Field

University

1

Have a better life

Government agency

San Francisco
Approx. 1,480 life science companies are located inthis area

Leased area Approx. 105,000 m2

Approx. 145,000 people are engaged in life
science–related industries

Uses

Lab & Office, offices,stores, rental housing

Schedule

Construction started in 2020
and is to be completed in 2023

[Major universities and research institutes]
University of California San Francisco, University ofCalifornia Berkeley, Lawrence Livermore National
Laboratory and others

San Diego

Role of the Company
The Company operates Rental Lab and Office business in Japan and the United States, providing a site forlife science players to gather. Also in Japan, we are building communities and providing capital to startups
to support the development of Life Science clusters from various perspectives and contribute to the realizationof a healthy longevity society.

Mission Rock Phase I

Torrey View

Approx. 960 life science companies are located inthis area

Leased area Approx. 47,800 m2

Approx. 68,000 people are engaged in life
science–related industries

Uses

Lab & Office

Schedule

Construction started in 2021
and is to be completed in 2023

[Major universities and research institutes]
University of California San Diego, Scripps ResearchInstitute, Salk Institute for Biological Studies and others
Source: The Ministry of Economy, Trade, and Industry

47

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Integrated Report 2022

48

Value Creation Efforts and Base Building

Practical example

2|

Value Creation through Business

Developing Sites : Life Science Building, Mitsui Lab & Office

Promoting Life Science Innovation in Japan

Development of the Life Science Buildings

150 companies

Nihonbashi
Muromachi
Mitsui Tower

The Pharmaceutical
Manufacturers’
Association of TokyoJapan Pharmaceutical
Manufacturers Association
Forum for Innovative
Regenerative Medicine
Japan CRO Association

Bank of Japan

11
Mitsukoshimae
Sta.

12
14

Gofukubashi
Entrance/Exitroeto M ineky L
To ibiya
H

Approx.

13

Showa-dori Street

operate part of the University of Tokyo
Entrepreneur Lab● Preparation of share lab in Nihonbashi

Life science tenants

15

Japan Generic Pharmaceutical
Manufacturers Association

akusa

ri

Life science
Venture investment

The Federation of Pharmaceutical
Manufacturers’ Associations of JapanTokyo Pharmaceutical
Affairs Association-douoChreetSt

Life science assets● Nihonbashi Life Science Building series● Commissioned to administer andsites are locatedShin-Nihombashi Sta.

ine

Office buildings for life science companies

15

L
inza

In Nihonbashi, Tokyo * As of August 2022

Kodenmacho Sta.

G
etro
yo M
Tok

Including Nihonbashi Life Science Building where diverse
players related to life science are located as a life sciencecluster in Japan, the Company provides 15 sites in the
Nihonbashi area in Tokyo, to be utilized as multi-purpose
spaces for interaction such as office rooms and conference
rooms. Moreover, the Company has developed shared wetlabs “Mitsui Lab & Office” and has been commissioned toadminister and operate part of the University of Tokyo Entrepreneur Lab. In Osaka, we are also developing life sciencebuildings (two sites, including an under-development site)and promoting the development of sites to create innovation.

borieet
Soto
Str
dori

Essential Features of the Life Science Innovation Promotion Business
Through collaboration, key players such as
start-ups, universities, hospitals, major pharmaceutical companies, and other stakeholders
Building Communities
leverage mutual knowledge, technology, andcapital to advance research and developmentthat transcends industry boundaries.
Such an ecosystem is to be built
through an approach centered on the
Foster andInteract andfollowing three concepts:
supportcooperate• Building Communities• Developing Sites• Providing Capital
We are supporting the creation of
Developing Sites
Providing Capital
innovation in the life science domain.

Expansion of Nihonbashi Life Science Building series

Metropolitan Expressw
Loop Linaye

Nihonbashi

Toei As

Ningyocho Sta.

Line

Edobashi
Entrance/Exit

Nihonbashi Life Science Building series
Member’s Company location of the Japan Pharmaceutical Manufacturers Association

Limited partner investments ininvestment funds targeting companies
in the life science field

Rental Lab & Office (Mitsui Lab & Office)Expansion of “Mitsui Lab & Office”

We will contribute to solving problems in R&D environments and will work to create innovation through rental labs and officesthat integrate the offices and the full-fledged wet labs necessary for creating innovation in the life sciences.

Building Communities : LINK-J
LINK-J is a general incorporated association that we jointly established with academia
and industry in March 2016 to be a platform for people and information to interact for
those working in the life science field. Aiming to promote open innovation and build an
ecosystem in the life science domain, LINK-J undertakes events to “interact and cooperate” and provide “foster and support.”

LINK-J Special Members:

565

Events held in 2021:

Including companies, organizations and individuals * As of August 2022

Companies, start-up companies, non-profit organizations,academia, and individuals involved in the life science domain
participate in LINK-J as special members. LINK-J provides
various services to its members, such as congregate andconnect, foster and support, information dissemination, anddeveloping sites.
(Employees)

565

600

446

254
200

0

49

137

August 2017 August 2018 August 2019 August 2020 August 2021 August 2022

Integrated Report 2022

Mitsui Link Lab Kasai(completed in 2020)

Various events are held for the purpose of interaction
and cooperation among members.
● Networking● Symposia● Exchanges with overseas life science organizations● Career forums● Partnering support● Support for commercialization
Cooperation partners
in Japan and overseas:

Mitsui Link Lab Shinkiba 1(completed in 2021)

Business seeds vicinity-type
Mitsui Link Lab Shinkiba 2(to be completed in 2023)

Mitsui Link Lab KashiwaNo-Ha 1 (completed in 2021)

524

450

370

400

City center vicinity-type

Approx.

70* As of August 2022

Collaborating with life science organizations, local
governments, universities, research institutes, andacademia in Japan and overseas, we hold events andprograms.
● Collaboration partners in Japan: Approx. 50● Overseas collaboration partners: Approx. 20(including embassies in Japan)

Providing Capital
Limited Partner investment is made in investment funds
targeting companies in the life science field established by
venture capitals. By providing support according to thestage and working as a bridge, more advanced technology
seeds are realized and faster creation of new industries is
encouraged.
Concentration of venture capitals, accelerators, etc.

In our Company’s properties in Nihonbashi and Yaesu, Tokyo,

11

venture capitals andaccelerators are concentrated

More advanced
technology seeds arecommercialized

Limited Partner
investment

Support for venturecompanies

Collaboration

Faster creation of
new industries

More advanced
technology seeds ofuniversities and research
institutes arecommercialized andsupport life science
venture companies

Limited Partner
investment to investment
funds targetingcompanies in the life
science field establishedby venture capitals* As of August 2022

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50

Value Creation Efforts and Base Building|

Business Report

FY2021 Actual

At a Glance

Leasing

Revenue from Operations(consolidated)32%¥2,100.8 bn

The Mitsui Fudosan Group’s main business activities are implemented through its leasing business, property sales business, and management business.
In line with this structure, we have adopted the four accounting segments of Leasing, Property Sales, Management, and Other.
Furthermore, revenues and profits generated
by individual projects are classified into these segments and may be allocated to a single segment or multiple segments.

Property Sales¥668.1 bn

17%¥429.3 bn¥359.4 bn

Property Sales

53%¥244.9 bn

Other

20%

31%

¥643.8 bn

Leasing
Operating Income (consolidated)

Management56%¥129.9 bn

Eliminations or
Corporate

Management

23%¥138.3 bn−¥57.2 bn−¥

20%

50.9 bn

12%

Other −

29.6 bn−¥

Leasing
Includes revenue gained from the leasing of realestate.

Segment Explanation

Sub-Segment

OfficeOfficeRetailRetail560

Revenue from Operations
by Segment

420

636.0
35.3

623.0
44.9

240.4

208.8

0

668.1
52.1

150

Property Sales to Individuals(Domestic)

600

226.2

450

2019

369.2
2020

389.8

2021

150
(FY)

0

Property Sales to Investors andIndividuals (Overseas), etc.

714.7
524.0

389.3

255.4

120.7

2019

2020

120

60

60

30

30
2020

2021

(FY)

0

Property Management(Billions of yen)

500

643.8

400
398.6

(FY)

118.2
78.2

94.1

0

Brokerage, Asset Management,
etc.

421.4

402.9

105.2

93.8

316.2

2019

Property Management(Billions of yen)

60

138.3

123.7

Brokerage, AssetManagement, etc.

309.0

48

107.7

22.8

(FY)

57.2
39.9

29.6

40.0

2019

2020

24.0
2021

(FY)

0

New Construction underConsignment

90.7

2019

2020

Tokyo Dome

Other

359.4
266.8

95.0

86.8

59.3
46.8

200

67.4

100

165.8

147.2

158.3

2019

2020

2021

-27.2

-29.6

2020

2021

0

32.7

(FY)

Sub-Segment Total(Billions of yen)

2.2

0
-10

21.8

Facility
Operations

Other(Billions of yen)

10

25.9

18.0
32.7

Tokyo Dome

20

24
12

Facility
Operations

300

321.5

2021

New Construction
under Consignment

324.0

Brokerage, Asset Management,
etc.

55.6

36

114.3

2020

Includes revenue gained from new constructionof wooden housing under consignment and theoperation of facilities such as hotels.

400

429.3

100

245.1
2021

Other *

300

Property Sales to Investors andIndividuals (Overseas), etc.

150

129.9

90

2019

268.6

Property Sales to
Individuals (Domestic)

145.8

Property
Management

200
325.3

(Billions of yen)900Property Sales to Investors andIndividuals(Overseas), etc.

300
360.2

120

Operating Income by Segment

Includes revenue from fees gained through the
management and operation of real estate, brokering
deals, and other sources.

750

Sub-Segment Total(Billions of yen)

Includes revenue gained from real estate property
sales to individuals and investors.

(Billions of yen)

280
140

Management

Property Sales to
Individuals (Domestic)

Other(Billions of yen)

700

Other

Property Sales

31.2
2021

-20
(FY)

-30

2019

(FY)

* Includes the Tokyo Dome Business since FY2021

Main Segment for Recording Revenue for Each Asset Class: Category which is a main segment for recording revenue

Note: The categories shown here are to give an idea of the segments for recording revenues and profits and details may differ.

To Individuals
OfficeRetailOther

To Investors

Main Asset Classes

Domestic

51

Overseas

Property
Management

Brokerage
To
To
Corporations Individuals

AssetManagement

New Construction
under Consignment

Facility
Operations

Tokyo Dome

Office Buildings

P.53

Retail Facilities

P.57

Logistics Facilities

P.59

Housing

Condominiums

P.61

Detached
Housing

P.61

Hotels & Resorts

P.65

Tokyo Dome

P.67

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Value Creation Efforts and Base Building|

Business Report

OfficeOffice Vacancy Rates Remain Below Market Levels

Office Building Lease Contract Durations Are Steadily Increasing

Office Vacancy Rate

Change in Office Building Lease Contract by Duration(vacancy rates as of March 31 of the relevant fiscal year)(%)

Market Environment

10.0

Competitive Advantages

Risks● Medium- to long-term relationships with aboutcompanies● Changes in office demand due to the spread of telework, etc.

3,000 tenant

Opportunities● Heightened mindset toward productivity improvement among

companies and workers

an extensive value chain engaged in every asset classmanagement issues

with changes in working styles

4● Expansion of corporate initiatives to achieve carbon neutrality

4.4
4.0

performance, etc.)● Achievement of integrated safety and security that spans fromdevelopment to operational administration under Groupmanagement, and disaster-resistant neighborhood creation

0

4.1

4.0

22%

3.2

2.7

24%

52%

58%

50%

32%

30%

26%

28%

30%

2017

2018

2019

2020

2021

50%

50%

2

1
1.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

20%

12%

16%

3

2.0

● Highly competitive property portfolio (locations, product

4.9

4.5

8.0

● Diverse non-physical services that contribute to solving tenants’● Diversification of times, places, etc. for working associatedOver 5 years

4.8

5

9.2

6.0

● Expertise in mixed-use neighborhood creation that mobilizes

Over 2 years to 5 years or less(Years)6.4

240,000*1
Number of office locations: Approx. 149 (nationwide)*1● WORK STYLING members: Approx.

● Increase in office supply in 2023 and 2025

(non-consolidated)
Up to 2 years

Mitsui Fudosan (Tokyo metropolitan area; non-consolidated)
Central Tokyo 5 wards (Source: Miki Shoji)

0

(FY)

(FY)

*1 As of the end of July 2022

Future Development Pipeline
Business Strategy
Domestic projects● Creation of new value for improving productivity through the provision of assets andsoft services that meet the needs of diverse working styles (places, times, etc. of work)● Promotion of carbon neutrality through the improvement of environmental performancein office buildings, and the provision of office building services*2 that contribute totenants’ decarbonization strategies

Overseas projects

8 properties
12 properties

includes6 redevelopment projects around Tokyo Station

10 in Europe and North America and 2 in Asia

includes(As of the end of August 2022. However, as of the end of June 2022 for overseas projects)

Redevelopment Pipeline in the Yaesu and Nihonbashi Areas*2 Supply of green electricity to tenants, etc.

Otemachi One

An Excellent Portfolio

Shin-Nihombashi Sta.

Nihonbashi Muromachi Mitsui Tower
Nihonbashi Muromachi 1st District Project

Leasing Revenue (consolidated)

Approx. ¥389.8 billion

Leased Floor Space Ratio of Tokyo
Metropolitan Area (non-consolidated)

Leased Floor Space (consolidated)

Approx.

(FY2021)

3,392 thousand m

Approx.

2(As of the end of FY2021)

Mitsukoshimae Sta.

90%

Nihonbashi
1st District Nihonbashi Nihonbashi 1-ChomeCentral District Project1-2 Project(As of the end of FY2021)

Nihombashi Sta.

Tokyo Sta.

Steady Expansion of Leasing Revenue and Leased Floor Space Mainly in Central Tokyo
Leasing Revenue (consolidated)(Billions of yen)

400
300

307.8

337.7

360.2

369.2

389.8

Leased Floor Space (consolidated)

Leasing Revenue Ratio (by area, FY2021)(Thousand m2)

Regions

3,500

3,393

3,392

3,257
3,148
3,000

200

2,909

13%

100
0

53

2017

2018

Integrated Report 2022

2019

2020

2021
(FY)

0

2017

2018

2019

2020

TOKYO MIDTOWN
YAESU

7%

Other
Tokyo
metropolitan
areaTOKYO MIDTOWN YAESU (completed in Aug. 2022)

Nihonbashi Takashimaya
Mitsui Building

Yaesu 2nd District
Central Project

5 wards
of central
Tokyo

80%

TOKYO MIDTOWNHIBIYA

Yurakucho Sta.

New projects from fiscal
2022 onward (involving Mitsui Fudosan)
Other Group-owned properties

2021
(FY)

Uchisaiwaicho
1st District Project

Nihonbashi 1-Chome Central District(completion scheduled for FY2025)

Integrated Report 2022

54

Value Creation Efforts and Base Building|

Business Report

Providing the Best Mix of Optimal Work Styles for Customers (Companies and Workers)
Diversification of Customers’ (Companies’ and Workers’) Needs
Elements Demanded of Workplaces by Workers

Achieving diverse work styles through
WORK STYLING multi-site shared offices for corporate clients

TOPICS
Site-based officeWork-from-home

Number of sites nationwide

Elements Demanded of Workplaces by Companies
Service Office for Corporate Clients

Safety andSecurity (Low
Risk of Infection)

Environmental
Considerations

Cyber
Security

149*

2

Multi-Site Satellite Offices for Corporate Clients

WORKS STYLINGFLEXWORK STYLINGSHAREWORK STYLING SOLO
(specialized forsingle-person rooms)

Number of member companies

Approx.
Spaces for Office Work

Convenience

Spaces for Intellectual Production

Resilience

BCP(Planning and Development, Creation,
Training, Collaboration)(Paperwork/Analysis)

Our Group’s Office Building Strategy
While remote work has made great inroads, the importance of face-to-face communication has also come to be newly
appreciated. Our Group is combining a variety of assets and intangible services matched to the needs of diverse places
and times for work and working styles, to provide new value aimed at productivity improvements.

Head Office (Site-Based Office)Decentralized Office

Home

900

Number of members

Approx.

Expansion of office functions

Expansion of workspaces● As a BCP measure● As a workspace near home or business partners● For project use● As a workspace for concentrating on work

240,000(As of the end of July 2022)*2 Tie-ups with Mitsui Garden Hotel, etc., included in these: 40 sites

Distribution and Breakdown of Sites
Tokyo
Metropolitan
Area
Kinki Area

Other Areas

117
17
15

NagoyaKinki Area

Fukuoka38

Chuo LineTokyo
Metropolitan
Area

Tokyo Sta.

Other Than Three Wards
in Central Tokyo (Terminal/
residential vicinity area)

Yamanote Line

Hiroshima(As of the end of July 2022)

TOPICS

SendaiThree Wards in Central Tokyo(Office aggregation area)

Sites in Tokyo
Metropolitan
Area*3

Sapporo79

Tokaido Line
* 3 Tokyo and three surrounding prefectures(Kanagawa, Chiba, Saitama)(As of the end of July 2022)

Health Management Support Service “&well” highly appreciated by 95% ofcompanies that introduced it

Key Initiatives to Support the Strategy

Intangible
Services

Members’
website for ourcustomers

Members’ facility
for ourcustomers*1

Healthmanagement
support service

Comprehensive
service to provide
new working styles“&well” is a service that supports corporate health management under the supervision of the nonprofit organization
Kenkokeiei. In a questionnaire survey conducted in February 2022, 95% of the companies that introduced it answeredthat “&well has been contributing to the promotion of health management” during the COVID-19 pandemic. The numberof users is about 30,000, about 10 times the amount before the spread of COVID-19 (February 2020). We will continue
to strengthen and expand our support for health management and well-being in both real and digital aspects.
Strengthen and expand support for health management and well-being in both real and digital aspects
Expanding services under the COVID-19 pandemic

Expansion of working
style options
Provision of multi-siteshared offices

150,000

users by FY2025 (target)

Community-building
Aggregation, exchange,
training/cooperation for companies
and organizations

Improving employee
health awareness

For Worker
For employees
Starting report andconsultation services

BCP
Nihonbashi/Toyosu Smart Energy Projects

Environmental
considerations
Provision of green power
to tenants

Real event

Enhancing online content

30,000newAdding
functions

For HRusers

For HR/health personnel
Promote efficiency andeffectiveness of healthmanagement

FY2021

FY2025*1 Lounge, gym, cafe, conference rooms, etc.

55

Integrated Report 2022

Integrated Report 2022

56

Value Creation Efforts and Base Building|

Business Report

RetailCarefully Selected Store Openings in Tokyo Metropolitan Area and Other Major Metropolitan Areas in Japan
Number of Stores by Area
(LaLaport, MITSUI OUTLET PARK)

Distribution of Store Openings(LaLaport, MITSUI OUTLET PARK)

Market Environment

Competitive Advantages

Risks● Retail tenants: Approx.

2,400 *¹
Tenant stores: Approx. 9,500 *²● Concerns about sluggish consumer sentiment due to rising

prices, including energy prices● Mitsui Shopping Park members: Approx.

● Recurrence of business restrictions due to new waves of the* Includes LAZONA Kawasaki Plaza, DiverCity Tokyo Plaza

Kinki region:
8 facilities

13 million*

Oyabe● Over 40 years of expertise in retail facility planning, development,

COVID-19 pandemic

tenant sales, and operations

Kurashiki

Fukuoka● Brand power and customer appeal through leading domestic

Opportunities● Synergies with the logistics business, which meshes closely withpandemic

retail facilities● Greater demand in new lifestyles

SendaiTokyo metropolitan area:
17 facilities
Chukyo region:
4 facilities

brands including LaLaport and MITSUI OUTLET PARK

● The value of real space re-appreciated after the COVID-19(Numbers in parentheses indicate properties under development)

Sapporo● LaLaport*● MITSUI OUTLET PARK (MOP)*1 As of April 1, 2022
*2 As of the end of FY2021

Total

LaLaport

MOP

Total

34 (2)

21 (2)

13

Tokyo metropolitan area

17

12

5

Kinki region

8 (2)

5 (2)

3

Chukyo region

4

3

1

Other

5

1

4

Future Development Pipeline
Domestic Projects

Business Strategy

3 properties● Maximizing the value of real spaces to provide moving experiences that can be obtained

Overseas Projects
includes2 in Kinki region

6 properties

includes5 in Taiwan and 1 in Malaysia(As of the end of August 2022. However, as of the end of June 2022 for overseas projects)

with the five senses, from the perspective of education, sports, health, entertainment,
food, etc.

● Focusing on our own “&mall” EC site etc., promoting omni-channels that integrate real

Promotion through Our Tripartite Model of Real Facilities, EC Sites, and Logistics

facilities and online spaces using digital technology● Enhancement of member customers’ frequency of use and purchase unit price throughthe promotion of One to One marketing

Providing a wide range of purchasing options to consumers while improving the efficiency of tenants’ inventory management● Promotion of our unique tripartite model combining real facilities, EC sites, and logistics

Experiential Value Made Possible byReal Facilities Improvement of
Customer Appeal

to provide consumers with a wide range of purchasing options and to improve theefficiency of tenants’ inventory management

Retail Facility
Revenue

An Excellent Portfolio

1.2 trillion

1.2 trillion

Mitsui Shopping
Park point card
members:

400

Approx. ¥Leasing Revenue (consolidated)

Approx. ¥(FY2021)226.2 billion

Leased Floor Space (consolidated)

Approx.

(FY2021)

Approx.

Centralized Managementof Real Facilities and
EC Inventory

13 million(As of the endof FY2021)

2,392 thousand m

Retail tenants
2(As of the end of FY2021)(As of April 1, 2022)

Total tenant
stores(As of April 1, 2022)

2,400

Approx.
companies

Approx.

Elimination of Time andPlace Restrictions on
Purchasing and Sales
Activities

Total number Approx.
of stores(As of the end of FY2021)

EC sites(FY2021)

Retail Facility Revenue (consolidated)

Approx. ¥Promotion through Tripartite Model

Real facilities

9,500

Logistics
Logistics
sites

Approx.

floor
53 Totalspace
4.2 million m

2(As of the end of July 2022)

Steady Increase in Leased Floor Space and Temporary Decline in Revenue from Operations under the COVID-19 Pandemic
Leased Floor Space (consolidated)

Leasing Revenue (consolidated)(Billions of yen)

250

238.3

240.4
208.8

226.2

(Thousand m2)

2,500

200

2,000

150

1,500

100

1,000

50

500

0

57

229.3

2017

2018

Integrated Report 2022

2019

2020

2021
(FY)

0

2,116

2,193

2,204

2,358

TOPICS

Facility Revenue Ratio* (by category)

2,392
Other

9%

2%

6%
2017

2018

2019

2020

Improving the working environment and job satisfaction of store staff“Mitsui Shopping Park Staff Circle”

2021
(FY)

26%

57%

* Includes master-leased facilities (FY2021; non-consolidated)

A store management app has been introduced for approximately
100,000 shop staff working at about 40 retail facilities
nationwide, including Mitsui Shopping Park LaLaport and Mitsui
Outlet Park managed and operated by the Mitsui FudosanGroup. And we launched “Mitsui Shopping Park Staff Circle,” aninitiative to create comfortable working environments andaffluent communities.

Main support and services❶ Providing real-time information dissemination and sharing tofacilitate smooth communication❷ Supporting productivity for store operations❸ Digitizing employee ID cards❹ Expanding benefits and welfare services for staff❺ Providing online support for training and self-development

Integrated Report 2022

58

Value Creation Efforts and Base Building|

Business Report

Logistics

Stable Business Expansion
Number of Facilities under Development/Operation and Total Floor Space at the End of Fiscal Years
Owned or under development by the Company (right axis)

Total floor space (left axis)(Million m2)

5Market Environment

Competitive Advantages

Risks● Track record of advanced logistics facility development

4● Close tenant relationships that enable provision of CRE

340
Establishment of Mitsui
Fudosan Logistics Park, Inc.

extending to 53 properties in Japan and overseas*1● Intensification of competition for land acquisition due to entry of

new players

solutions and direct sales to cargo owners*2(Office tenants: Approx. 3,000 ,*3Retail tenants: Approx. 2,400 , etc.)● Overheating of leasing competition due to high-volume supplyof new properties

Opportunities

2

ventures with originators

growth and reworking of supply chains by cargo owners

1satisfactionof labor shortages● Ability to propose logistics solutions that leverage DX

2.0

60

4.2

4.0

40

2.9

2.4

20

1.0
22

● MFLP quality which realizes industry top class customer● Faster digital transformation (DX) utilization against a backdrop

22

2.0

3.9

47

(Properties)

13● Diverse collaboration and business methods including joint● Expansion of logistics facilities demand due to EC market

22

28

33

3.6

46

53

15

19

20

2017

2018

24

26

29

23

13

0

2014

2015

2016

2019

2020

2021

2022

(FY)
(As of the end of July 2022)

0*1 As of the end of July 2022 *2 As of the end of FY2021 *3 As of April 1, 2022

Future Development Pipeline
Business Strategy● Achievement of business planning, leasing, etc. through provision of logistics consulting*4

and other solutions to customers

Projects

16 properties

Includes7 properties in Tokyo metropolitan area, 3 properties overseas(As of the end of August 2022. However, as of the end of June 2022 for overseas projects)● Promotion of differentiation of MFLP brand from competitors by the use of DX to improve theefficiency of tenants’ delivery and warehouse operations and enhance employee satisfaction● Actively developing new products such as data centers, urban warehouses and freezer andrefrigerated warehouses to meet diversifying customer needs by utilizing our know-how inthe development of logistics facilities*4 Mitsui Fudosan established MF Logisolutions Co., Ltd. in August 2018.

An Excellent Portfolio
Cumulative Totals including Properties Previously Developed by the Company (As of July 31, 2022)
Total facilities under development or operation in Japan and overseas

53 properties Of these, properties owned
and operated by the Company:

14 properties

4.2 million m

In addition to solving tenants’ logistics issues, we contribute to the achievement of a sustainable society through environmental
initiatives, such as decarbonization and conservation of ecosystems in the surrounding area, and initiatives to support diverse
human resources and working styles.
● Use 100% green energy in common areas by installing in-house solar
power generators, etc.
● Supporting tenant companies via a service to supply green power tohelp solve their RE100 and ESG issues and promote SDGs
● Conservation of ecosystems in surrounding areas by developing green
infrastructure (measures include a bird bath using rainwater and a rain
garden for improving the water quality with soil microorganisms)● Acquisition of four environmental certifications (ZEB certification (Nearly
ZEB), CASBEE (S rank), BELS (5 STAR) and DBJ Green Building certification 5 star)● Providing common spaces to support diverse human resources andworking styles (Multilingual signs, mosques, genderless bathrooms,
MFLP ICHIKAWA-SHIOHAMA II
deck terraces, cafeteria and lounges, etc.)
Green infrastructure to conserve
ecosystems in surrounding areas

Of this, floor space owned and operated

1.6 million m

2

33 properties
Bird bath and rain garden

59

Integrated Report 2022

Common areas supporting diverse working styles

Tokyo metropolitan area:2by the Company: Approx.

700 billion

Over ¥MFLP ICHIKAWA-SHIOHAMA II, a state-of-the-art logistics facility that takes theenvironment and diversity into consideration

Major development areas

Total floor space

Approx.

Cumulative total investment

TOPICS

Deck terrace

Cafeteria lounge

Integrated Report 2022

60

|

Value Creation Efforts and Base Building

Business Report

Housing (Homes and Living)

Property Sales (Property Sales Segment)
Representative Products and Brands
Condominiums (to individuals)

Market Environment

Competitive Advantages

Risks● Condominium unit sales: Approx.

● Decline in housing-related demand due to rising interest● Mitsui Housing Loop members: Approx.

rates and worsening business sentiment● Contraction of domestic housing-related market due topopulation decline● Heightened awareness concerning housing associated withdiversification of customers’ lifestyles

No. 1 in brokered deals for
36 consecutive years● Brand power as(Leasing/sales, new/used, condominiums/detached houses,
management/operation/brokerage, etc.)● Planning and development capabilities for realizing a product● Increased use of online business negotiations and electronic

Detached Housing

230,000
290,000● A line-up of varied products and services related to housing

Opportunities

Condominiums (to investors)

line-up of city center, large-scale, and redevelopment

contracts by customers

Condominiums (to individuals)
Maintenance of high profit margins and contract rates through a product line-up centered on central Tokyo, large-scale
projects, and redevelopment
Sales by Brand (FY2021)

Sales by Region (FY2021)

Middle-grade condominiums

High-grade condominiums●Park Homes ●Park Luxe

●Park Mansion ●Park Court

56%● Focusing on environment-friendly product planning torealize a decarbonized society

Other regions

5%

37%

Kansai &Chubu

Large-scale developments

7%

Property Sales Operating Income and Operating Margin● Enhancing the ability to capture business opportunities through strengthening ofcooperation among Group companies and mutual customer referrals, etc.

Operating Income (left axis)

Operating margin (right axis)(Billions of yen)

11.3

60

● Provision of proposals and solutions for optimal “Homes and Living” for every life stageof diverse customers

45
30● Deepening and expansion of loyal customers through the one-stop provision of diverse

products and services

150● Promoting the introduction of ZEH and ZEH-M to realize a decarbonized society

9.0

4.0
10.2

8.1

6.6

5.4
15.3

22.7

26.7 23.9

9.7

11.0

(%)

9.8
40.0

306 31.1

26.6 29.6

Condominiums, Units Booked, Year-End Inventories,
and Average Sales Price
Units booked (left axis)

12.3

9.3

87%

8%

●Park Tower ●Park City

Business Strategy

Tokyo Metropolitan
Area

24.0

12

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
(FY)

6,000

6

4,000

0

Average sales price (right axis)(Million of yen)

8,000

9

3

Year-end inventories (left axis)(Units)

2,000
0

6,557
4,512

47

4,858 4,391 5,200

4,956

48

45

51

58

53

67

77

74

77

100

64

3,707 3,283 3,1943,775 3,208

75
50
25

380 223 170 83 88 321 108 141 128 150 82
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

0

(FY)

Future Development Pipeline
Group Collective Capabilities That Offer One-Stop Accommodation
for Varied “Homes and Living” Needs

16 properties

Large-Scale Projects

Land Bank (Condominiums)

Approx.

27,500 units(As of the end of August 2022)

Buy

Sell

Lease/Rent

TOPICS

Value created by large-scale redevelopment projects in urban centers

Mitsui Rehouse

Using redevelopment techniques for high-level utilization of low-utilization land and development of blocks creates newliving spaces in urban centers, as well as new value that greatly enhances the appeal of neighborhoods, by creating prosperity, safety, security, and open spaces for people to relax.
Mitsui Rehouse

Mitsui Rehouse

Beforeredevelopment

Build

Renovate

Interior

Example of creation of value through large-scale redevelopment● Aging of infrastructure● Population decline● Unused floor space ratio

OperateCreation ofliving spaces
Afterredevelopment
Renewal of
infrastructure functions

61

Integrated Report 2022

Creation ofopen spaces
Safety and security

Park Tower GranSky(Shinagawa Ward, Tokyo;
completed in 2010)

Integrated Report 2022

62

Value Creation Efforts and Base Building|

Business Report

New Construction under Consignment (Other Segment)

Property Management (Management Segment)
Condominium Units
under Management

Approx.

280,000

Number of Rental Housing
Units for Lease underManagement

Approx.

140,000

We leverage the Group’s collective capabilities, as well as
expertise cultivated through a track record spanning many
years, to provide condominium management services.

We provide rental condominium operation and brokerage-related services that benefit both property owners
and tenants.

Number of Condominium Units under Management

Rental Housing Units for Lease under Management(Units)285,612284,374
277,985

280,000
260,000
240,000
220,0000

140,000

135,962
132,468
128,642130,000

258,689
257,902
255,713110,000

228,549
221,910

Approx.

112,417
108,566

Large-Scale Facilities Delivered

102,896Over

100,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
(FY)

0

250,000(cumulative total over the past 48 years)

121,792
117,405

120,000

251,874
244,494
238,027

We offer space design, renovation, and renewal services for homes, offices, hotels, and more. Utilizing thedesign capabilities that are our strength, we provide
wide-ranging support to all customers in every area,
both individuals and corporations.

Buildings Delivered

140,508(Units)300,000

Using the 2x4 construction method, which excels in earthquake
resistance, thermal insulation, and other areas of basic performance, Mitsui Home has delivered over 250,000 new buildingsin 48 years, primarily made-to-order homes. In addition tohomes, it is also actively taking on construction consignments
for large-scale facilities and overseas projects.

Other (Other Segment)

5,0002013 2014 2015 2016 2017 2018 2019 2020 2021
(FY)

Number of Rental Housing Units for Lease under Management
Number of Rental Housing
Units for Lease underManagement

Approx.

250,000

Since it was launched in 1994, Mitsui Car Park Leasing
has developed a business operating car parks all overJapan. It has contributed to dynamic neighborhood
creation by providing car park management support
services that enable land to be used effectively.

Members

Approx.

320,000

TOPICS

Mitsui Housing Loop——Providing one-stop solutions for homes and living

Providing Comfortable and Economical Services for
People Living in Mitsui Homes

Members

We are expanding the car sharing
business, centered on Mitsui Car
Park Leasing locations in theTokyo metropolitan and Kansai
areas. Careco features a full lineup of vehicles, including minivans
and Mercedes-Benzes.

Customer base of Approx.

290,000 people** As of the end of March 2022

Number of Mitsui Housing Loop Members(Persons)

300,000

214,700

Mitsui Car Park Leasing

200,000

238,600

266,800

292,500

180,200

Brokerage (Management Segment)
Number of Deals Brokered

41,000No. 1 for 36*
consecutive years
Approx.

Fee/Revenue(Billions of yen)Transactions Transaction volume(Units)(Billions of yen)

Number ofstores90.1

41,183

1,892.6291

We are realizing safe and reliable deals that meet theneeds of diverse customers in areas such as real estate
sales, purchases, rental, and usage.

2 Company A

71.5

28,7501,577.9

199

3 Company B

71.2

38,144

1,453.3

256* From FY1986 to FY2021

4 Company C

39.8

10,081964.8

94

5 Company D

22.9

8,226

550.3

71

63

Integrated Report 2022

SHOPPING

HOUSESpecial offers at
Mitsui Fudosan
properties

Housework
services

Apr. 2018 Apr. 2019 Apr. 2020 Apr. 2021 Mar. 2022

Special offers on
kitchen-related
goods

TOWN

KITCHENTRAVELSpecial offers ataccommodation
facilities

Brokerage Market (FY2021)

1 Mitsui Fudosan

Mitsui Rehouse

Home reformand cleaning

SPECIAL

ROOM

100,000

0Special offers
on consumer
electronics andfood products

Arrangement oflifestyle-related
services

Realty Co., Ltd.

Source: “Fudousan Keizai Tsushin (The Real Estate Business Daily),” May 25, 2022, Real
Estate Economic Institute Co., Ltd.

TOPICS

Mitsui Fudosan Residential Co., Ltd. ——Formulating a “Carbon-Neutral Design
Promotion Plan” to realize decarbonization of homes and lifestyles

In order to achieve the target of reducing greenhouse gas emissions by over 40% by fiscal 2030
(compared with fiscal 2019), we aim to achieve carbon neutrality with our customers through thethree “R” measures.
Reduction: Saving energy by improving the performance and durability of homes● Achieve ZEH/ZEB level environmental performance in all new construction by fiscal 2030, etc.

Carbon-Neutrall
DesignRenewable energy: Creating a system to promote the introduction of renewable energy and adopt energy-creation technologies● Promotion of the introduction of collective receiving of electricity from renewable sources, etc.
Relation: Providing mechanisms and services for realizing carbon neutrality in our customers’ lives together● Creating a system that encourages customer actions and choices (e.g., visualization of environmental contribution, provisionof benefits, etc.)

Integrated Report 2022

64

Value Creation Efforts and Base Building|

Business Report

Development of Hotels and Resorts in Major Cities and at Tourist Destinations in Japan and Overseas(Approx. 13,100 rooms)

Hotels and Resorts

Our Company’s Hotel and Resort Facility Located Areas(As of July 1, 2022)

Lodging-focused hotels
Resort and luxury hotels

Market Environment

Competitive Advantages

Risks● Mitsui Garden Hotel members: Over● Delayed recovery in inbound customers due to the● Number of directly managed guest rooms: Approx.

COVID-19 pandemic

600,000(domestic and overseas)*1● Decrease in business travel demand due to restrictedactivity and changes in working styles

13,100● Development of 13 hotel and resort brands meeting diverse

customer needs, from luxury to lodging-focused brands

Lodging-focused hotels:
Approx. 6,500 rooms(working, living, etc.)● Expansion of domestic travel needs due to overseas travel

restrictions*1 As of July 1, 2022

(%)

100

SendaiKanazawa

products within the Group (collaboration with WORKSTYLING shared offices, attraction of restaurant tenants byleveraging retail tenant relations, etc.)● Diversification of purposes of stay within domestic demand

Hiroshima Okayama Kyoto
Fukuoka
Kumamoto

Osaka

No. of rooms Percentage
Total
11,100
85%
Tokyo
5,400
42%
Tokyo metropolitan area (excluding Tokyo)
1,100
8%
Kyoto
1,300
10%
Osaka
500
4%
Other
2,800
21%

Occupancy Rate/Average Daily Rate (Lodging-focused hotels*2)

Resort and luxury hotels:
Approx. 200 rooms● Demonstration of synergies through collaboration on

Opportunities

SapporoTokyo metropolitan area

Lodging-Focused Hotels: Number of Rooms by Area*1

Chiba
Nagoya

Tokyo

(Yen)

Average daily rate (right)

18,00080

15,00060

12,000

40

9,000

20

Ise/Shima

Occupancy rate (left)

2013

2014

2015

2016

2017

2018

2019

2020

2021 (FY)6,000

Resort and Luxury Hotels: Number of Rooms by Area*1

Business Strategy
Okinawa● Capture new demand for working, living, etc.,*2by providing places to stay

Taiwan (Taipei)

Hawaii(Oahu)● Expansion and deepening of loyal customers through the expansion of membershiporganization*3 services

Total
Tokyo
Okinawa
Other domestic
Honolulu

No. of rooms Percentage
2,000
15%
200
1%
500
4%
600
4%
700
6%

*1 Rooms rounded to the nearest 100 (As of July 1, 2022) *2 Excluding Tokyo Dome Hotel

Future Development Pipeline● Active capture of domestic travel needs subject to overseas travel restrictions

Number of guest rooms(includes overseas)*2 Need for telework, short-term residence, hospital treatment stays, stays for accompaniment of hospital patients, etc.
*3 MGH Rewards Club, etc.

Approx.

700 rooms

Of these, lodging-focused hotels: Resort and luxury hotels:
Approx.

400 rooms

Approx.

300 rooms(As of the end of August 2022. However, as of the end of June 2022 for overseas projects)

TOPICS

An Excellent Portfolio

Hotels and guest rooms (including overseas)

52 hotels

Approx.

13,100 rooms(As of July 1, 2022)“Hotel × Work”“Hotel × Medical Care”

Conversion of hotel guest rooms into
private room shared offices

The National Cancer Center
Hospital East is visited by nearly
300,000 people a year from Japanand overseas. We built Mitsui
Garden Hotel Kashiwa-no-Ha Park
Side on the premises of the hospitalto support the treatment of cancer
patients. (Opened in July 2022)

Brands That Meet Diverse Customer Needs
Lodging-focused hotels

Conversion of hotel guest rooms into private room shared offices

Resort and luxury hotels

TOPICS

Capturing Accommodation Demand through Collaboration with a Hospital

Biodiversity conservation—Coral planting activities

At Halekulani Okinawa, we have a program to plant coral in areas where coral has
died due to climate change or feeding damage in the waters around the hotel torestore the former coral reefs. Hotel guests can participate in this program. The
funds for this activity come from Halekulani Boutique in the hotel using all of the
profits from the sale of eco-bags made from recycled plastic (PET) bottles.

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Tokyo DomeTOPICS

Implemented the largest renovation ever and DX for Tokyo Dome

❶ One of Japan’s biggest main video screens and ribbon screens were newly installed to deliver impressive video effects

Improving the Value of Tokyo Dome City toward the Post-COVID-19 WorldA full-color LED main video screen (approximately 125.6 m in width, area of approximately 1,050 m2), which is one ofJapan’s largest main stadium video screens, and full-color LED video ribbon screens on the left and right outfield fences(total width of approximately 107 m) were newly installed. The main video screen is 4.4 times the size of the current screen
and offers a top-class image quality for a professional baseball stadium’s main screen. The produced images projectedin vivid colors allow spectators to experience more realistic sensations.

Toward the post-COVID-19 pandemic, in order to further
improve the appeal of Tokyo Dome City, which has acollection of varied facilities such as a stadium, retailfacilities and a hotel, and offers mainly kinds of sports andentertainment, we have completed the largest renovation
ever. Starting with the renovation of the stadium, we will
work on various measures to improve value, including
renovating areas other than the stadium, so that the entire
Tokyo Dome City will be transformed into a more attractive
neighborhood.

<Reference> Tokyo Dome City business sales
Note: Figures for FY2017 to FY2020 are prior to consolidation and figures for FY2021 arepost consolidation in the Group.
(Million of yen)

100,000

83,68687,04891,55739,75640,00020,0000FY2017FY2018FY2019FY2020

FY2021

Power of Facility

Power of Events

A Spacious Site in the City Centerwith Convenient Transportation

Plentiful Facilities That Meetthe Needs of Diverse Visitors

Attraction of Customers throughVaried Events in the City Center❸ Replacement and additional spectator seating as well as full renovation of the Premium Lounge

Toei Mita Line
KasugaTokyo Dome

Korakuen

Tokyo Dome City

Suidobashi

Iidabashi

Ochanomizu

Imperial Palace

In central Tokyo
A spacious sitecovering Approx.

13 hectares

Adjacent to 3 stations on 4 lines,
for convenience of transportation

6 minutes
Haneda Airport
Approx. 45 minutes
Narita Airport
Approx. 50 minutes
Tokyo Station

Approx.

Integrated Report 2022

SUMMER

Professional baseballJimbochoTokyo Metro Hanzomon LineSPRING

All-weather stadiumwith 55,000-person
capacity

JR Suidobashi

JR Chuo Line/
Sobu Line67

A new design can be enjoyed by visitors as they make their way through the entry gate to their seats and new digital
signage is installed. All gates have been replaced by new designs, and LED displays and approximately 260 units of digital
signage are placed around the concourse. The area has been transformed into a comfortable and sophisticated space.

59,38860,000Power of Location

Toei Oedo Line

Provided by: The Yomiuri Shimbun

80,000Strengths of Tokyo Dome City: Centrally Located, Convenient for Transportation ×
Collection of Varied Facilities with Customer Appeal

Tokyo Metro
Marunouchi Line

❷ New entry gate and stadium concourse design and installation of digital signage

LaQua
Retail facilities,
amusement park,
spa

Other sports❹ Suite area has been fully renovatedEventsConcerts
Business exhibits

Tokyo Dome
Hotel
Large-scale
city hotel

WINTER

AUTUMN❺ Completely cashless operations in Tokyo Dome

P.88

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Business Report

Dramatically Growing the Overseas Business
Market Environment

Business Strategy● Capture outstanding business opportunities by combining partner strategies with

European and North American Market

Asian Market

Risks

Risks

● Changes in office and housing needs associated with● Changes in the need for real retail facilities associated with● Accelerating inflation including building costs and the risk

● Geopolitical risks caused by U.S. China tensions

remote work and other changes in working stylesof higher interest rates due to monetary tightening

Opportunities● Preference for high-quality properties in favorable locations

due to changes in the need for real venues

Group strengths nurtured through domestic businessgrowth in E-commerce● In order to respond to changes in the market environment, promptly rework productplanning to support area and product strategies, sustainability, etc., and maintain andstrengthen competitiveness● Risks of economic stagnation due to measures andregulations against COVID-19 in various areas, including
China’s Zero-COVID Policy

Area Strategy

Opportunities● Increase in demand for office properties with superior● Expansion of demand for consumption of experiences, etc.,● Increase in demand for “Laboratory and Office” buildings● Firm personal demand due to economic growth, growth ofenvironmental performanceassociated with the growth of the life sciences industry

Europe and North America

unique to real retail facilities

Develop with a focus on officebuildings and leasing housing ina mature, highly transparent
and liquid real estate market.

the middle class and personal consumption, the advance ofurbanization, etc.

Competitive Advantages“Engaged in Every Asset Class,” “an Expansive Value Chain,” and “Development Capabilities Necessary for
Creating Neighborhoods”

Investment

OfficeBuildings
Hotels &Resorts

Engaged in every
asset class

Housing

RetailFacilities

A History of Over 50 Years in Overseas Business

Mitsui Fudosan (UK) Ltd.
(established in 1990)

Over

Over

40 years
30 yearsDevelop with a focus on condominium sales and retail facilities
by incorporating the growing
Chinese and Asian markets
driven by rising consumer
spending and advancing urbanization.

Development

Extensivevalue chain

Leasing

Logistics
Facilities

Mitsui Fudosan America, Inc.
(Mitsui Fudosan (USA)established in 1973)

Sales

Asia

Operations

Promoting Localization by Recruiting andPromoting Excellent Local Employees

Overseas Partnership Strategy

Employees in overseas operations (consolidated)(Non-consolidated, local subsidiaries and operating companies, etc.)
Percentage of locally hired employees

About

90%

69

Integrated Report 2022Over

50 years

companies

Related (company name)ThailandAnandaTishman Speyer, Hines

China

Greentown Group

TaiwanCathay Real Estate Development Co., Ltd.

Major Partner Companies
USA

Managers of local subsidiaries
Mitsui Fudosan (Asia) Pte. Ltd.
(TID Pte. Ltd. establishedthrough joint venture in 1972)

60 partner● Advancing business in each region with Approx.

Percentage of locally hired employees

About

50%

UK

Stanhope, EDGE Technologies

Singapore

Hong Leong Group

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Overseas Sites and Business Development Areas

Future Development Pipeline

Europe andNorth America

EUROPE

Office buildings

NORTH AMERICA
ASIA

LondonBangkok

Leasing housing

San Francisco

Condominiums

Honolulu

Taipei15 properties

New York

Los Angeles

Shanghai

10 properties

Approx.

Kuala Lumpur
Singapore

Hong Kong

Mission Rock (San Francisco, USA)
To be completed in 2023

500 Units

SydneyBusiness locations
Business areas

50 Hudson Yards (New York, USA)
Completed in 2022

Maple Terrace (Dallas, USA)
To be completed in 2023

Overseas Portfolio
Breakdown of Group Assets by Area

Total overseas income (left axis)

USA

17%

60

Domestic

77%¥8,208.0
bn
As of the end of FY2021

2%

(%)

30

55.4

19.8

UK

20

27.5

30

4%

27.9
12.6

9.6

15

12.4

2017

6 properties
3 properties
1 property

10

LaLaport KAOHSIUNG (Kaohsiung, Taiwan)
Scheduled to open in 2026

Serviced apartment

2018

2019

2020

2021

4 properties

0

(FY)

* Total overseas income [a] ÷ (consolidated operating income + pro forma operating
income of overseas affiliates [b]) × 100[a] Total of overseas operating income and pro forma operating income of overseas
affiliates.
[b] Total of overseas equity method affiliated companies’ operating income or amountequivalent to operating income multiplied by Mitsui Fudosan’s equity interest, andprofit/loss on sales of stocks of overseas equity method subsidiaries and affiliates(for purpose of real estate sales). The amount equivalent to operating income is theamount of profit calculated from net income on a simplified basis after taking into
consideration the tax burden.

Integrated Report 2022

2 properties

Logistics facilities

31.3

7.2
0

71

Retail facilities

Hotel

18.2
Asia

Office buildings

Ratio of overseas income* (right axis)(Billions of yen)

45

Total Assets

Asia

Overseas Income as Part of Total Group Income

Leasing housing

1 property

Condominiums

Approx.

18,100 units

MAC (Sydney, Australia)
To be completed in 2023

RMZ Ecoworld 30 (Bangalore, India)
Phase 1 to be completed in 2022/Phase 2 to be completed in 2023

(As of the end of June 2022)

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Our Base for Value Creation

Main Environment Initiatives

For details regarding the main initiatives being carried out,
please refer to ESG Report 2022.
https://www.mitsuifudosan.co.jp/english/esg_csr/report/

Responding to Climate Change
PolicyThe Mitsui Fudosan Group recognizes that responding toclimate change is a key management issue. We create buildings
and neighborhoods with low energy consumption and reduced
emissions of greenhouse gases, and we aim to build a low
carbon society by taking steps together with our business
partners, tenant companies and stores, and customers, toaddress global warming, such as conservation of energy.

Participation in Initiatives Concerning Response to Climate Change
Climate-Related Financial Disclosure in Accordance with
TCFD
・TCFD and Mitsui Fudosan’s Position
Our Group endorses the agenda of the Task Force on Climaterelated Financial Disclosures (TCFD), which encourages
corporations and others to disclose information relating toclimate-related risks and opportunities. To mitigate risk throughour business activities, including risk of damage fromabnormal weather patterns linked to climate change; preserve
environments where people and other living creatures canflourish; and establish a sustainable decarbonized society, weare taking the TCFD recommendations as a point of departure
to disclose our analysis and response to climate change–related
business risks and opportunities, and other related information.

・Scenario Analysis
Our analysis is based on the 1.5°C and 4°C scenarios outlinedin the Fifth Assessment Report issued by the United Nations
Intergovernmental Panel on Climate Change. As the time axis foranalysis, we considered the typical life cycle of real estate assets,
and calculated the impact of climate change by approximately
the year 2050. In our scenario analysis, we used our Housing,
Office Buildings, and Retail Properties businesses as the objectof analysis, since these three categories represent the principal
focus of the commercial activities of our Group, and are also likely
to be major recipients of climate change impact.
・Analysis Result 1. Principal Risks and Opportunities
Based on external information, we identified risks and opportunities
related to climate change, and gathered future projections for eachrisk and opportunity. With reference to the TCFD final report aswell as other reports and sources relating to climate change, we
considered risks and opportunities accompanying the transition toa decarbonized society (measures/regulations, industries/markets,
technology) as well as physical risks and opportunities caused byclimate change (chronic, acute), and identified significant risks andopportunities that may have an impact on our Group’s three corebusinesses between now and 2050.
Under the 1.5°C Scenario, our Housing Business could be
affected by an increase in carbon taxes, which would push up
the price of raw materials and transport costs. While ZEH andenergy conservation renovations would become more widespread,under the 4°C Scenario, an increase in the number of extremely

Estimates of Financial Impacts on the Businesses of the Mitsui Fudosan Group in 2050
TypeTransition
Energy conservation measures

Major carbon tax increase

Average temperature increase
Physical

Major carbon tax increase

MeasureEnergy conservation
measures

Energy standards for new and renovated structures will be tightened, requiring additional capital
investment. Furthermore, decarbonized energy sources and ZEH will become mandatory, more
ZEB properties will be built, and more residential structures will be energy-efficient.

Customer conduct change

Products with superior environmental performance will be in greater demand and be
more competitive.

Propagation of technology
Technology for renewable energy andenergy conservation

The propagation of energy conservation technology will lead to more renovations toenhance energy conservation.

Transition
MarketChronic
PhysicalRising sea levels
Acute

73

Average temperature
increase

Integrated Report 2022

Intensification of abnormal
weather patterns

On-site operations will be hindered on extremely hot days, leading to higher operationalcosts and construction delays. In addition, increased use of air conditioning will push up
facility management costs, but these will be offset to some degree by enhanced
air-conditioning efficiency.

Minor

Moderate

Major increase in raw materials costs

Minor

Moderate

Moderate

Large

Minor

Moderate

Revenue reduction from construction delays due togreater number of extremely hot days

Moderate

Moderate

Increase in air-conditioning load

Moderate

Moderate

Moderate

Minor

Increase in energy conservation renovation costs due tostrengthened energy conservation requirements for buildings

Cost control through introduction of low-carbon materials

Minor

Moderate

Share expansion as a result of ZEH becoming a requirement

Minor

Moderate

Creation and sales of carbon credits as a result of ZEH construction

Minor

Minor

Customer conduct change

Shift to buildings with superior environmental performance

Minor

Moderate

Propagation of technology forrenewable energy and energy
conservation

Expansion of energy conservation renovation business

Moderate

Moderate

Reduced air-conditioning costs through AI

Moderate

Moderate

Reduced lighting and heating costs due to increased
energy conservation performance

Moderate

Moderate

Moderate

Moderate

Energy conservation measures
Transition

PhysicalResults of financial impact
estimate
4°C Scenario 1.5°C Scenario

Tax applicable to company emissions

Rising sea levels/intensification Flood damage due to high tides and heavy precipitationof abnormal weather patterns accompanying sea level rise

Projected future state

In addition to taxes on GHG emissions by the Group, we expect higher costs for raw
materials (steel, cement, etc.), which are significant on a base unit basis, as well as fortransport and air conditioning. At the same time, low-carbon structures and otherproperties with superior environmental performance will be better positioned to compete.

Factors with possible business impact

Increase in ZEH construction costs

Risks

Significant Risks and Opportunities That May Affect the Three Core Businesses of the Mitsui Fudosan Group by 2050
Principal risks and opportunities

Principal risks and opportunities

Major carbon tax increase

Opportunity

Classification

・Analysis Result 2. Estimate of Business Impact
We reviewed available quantitative data and the significance of risks
and opportunities. For selected principal risks and opportunities,
we estimated the financial impact on our Group’s business in theyear 2050. Under the 1.5°C Scenario, we projected a comparatively
large negative impact on costs associated with higher carbon taxes,
and the cost of meeting tightened energy conservation standards.
At the same time, we estimated that these impacts would be fully
offset by opportunities to construct more buildings with superior
environmental performance, an area where our Group maintains acompetitive advantage, and by reductions in heating and lighting
costs made possible by advanced energy-conservation technology.
Under the 4°C Scenario, we projected only limited actual losses
from high tides and flooding, and overall, relative to the 1.5°C
Scenario we estimated there would be fewer factors with a major
financial impact.

hot days would have a variety of impacts, including reduced laborproductivity, and the result could be higher new construction
costs. Under the 1.5°C Scenario, our Office Buildings Business isalso projected to see an increase in procurement costs. Costs may
also rise due to higher GHG emission taxes and expanded ZEB
construction. At the same time, in terms of business opportunities,
we would expect increased lease income from properties withsuperior environmental performance. Under the 4°C Scenario,
office air-conditioning costs and damage from high tides andflooding are a potential concern. Finally, in our Retail Business,the 1.5°C Scenario indicates higher costs of the same type as in
the other business areas. Lower lighting and heating costs can be
expected, thanks to more efficient and renewable energy use with
AI-equipped air-conditioning and other systems, but under the 4°C
Scenario, retail properties situated near the ocean may experience
increased risk of damage from high tides and flooding.

Average temperature increase

Results derived from analysis

Affiliation with RE100
The Group is a member of RE100, a global initiative committed
to utilizing 100% renewable energy. We are also proud to be
fighting climate change as a recognized member of the JCLP
(Japan Climate Leaders’ Partnership), a local partner of RE100.
For more detailed information about RE100, please refer to the following link.
https://www.there100.org/re100-members

Acquired SBT Initiative Certification for Greenhouse Gas(GHG) Emission Reduction Targets
Greenhouse gas (GHG) emission reduction targets for the wholeGroup have been set as the 1.5°C Target, which aims to limit the
global average temperature increase to below 1.5°C compared
to pre-industrial levels from the international Science Based
Targets (SBT) initiative.
For more detailed information about the SBT initiative, please refer to the following link.
https://sciencebasedtargets.org/companies-taking-action

Certain coastal structures will be damaged by typhoon-generated tidal surges accompanying
sea level rise.
Frequent heavy precipitation and flooding within the confines of levees can result insuspension of on-site operations and construction delays. In addition, customer safety
may be threatened, and facilities assets may be damaged.

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Our Base for Value Creation

External Evaluations
We have been selected for inclusion by CDP, a non-profit
organization engaged in international environmental surveys
and information disclosure, in the “CDP 2021 Climate Change
A List” of top-ranking companies in the climate change
category. Through this, we have been recognized as a globallyleading company in climate change activities.
Specifically, we were recognized for our actions to reduce CO2
emissions, reduce climate change risk, and advance the progressof a low-carbon economy, on the basis of data reported in the
CDP’s 2021 Climate Change Questionnaire. CDP’s evaluation in

Sustainable Financefiscal 2021 covered approximately 12,000 companies worldwide,of which 200 (including 55 Japanese companies) were selected
for inclusion in the Climate Change A List.

We have formulated a Green Finance Framework and a Sustainability-Linked Loan Framework in order to promote the “Group Action
Plan to Realize a Decarbonized Society” formulated in November 2021 from the aspect of financing. By proactively engaging insustainable finance, we will continue to contribute to the diversification of financing and the realization of a sustainable society.

Main Achievements

About CDP
Founded in 2000 in the UK, CDP is a non-profit organizationthat seeks information disclosure and the promotion of
initiatives by companies and local government to tackle climatechange, water resource conservation, forest conservation, andother environmental issues. The organization collects,
analyzes, and evaluates information on the environmental
activities of major companies around the globe, and every
year selects companies that excel in climate change

Issued Green Bond
initiatives and information disclosure for inclusion in the
Climate Change A List.
CDP’s annual environmental information disclosure andprocess for its evaluation are widely recognized as global
standards for corporate environmental information disclosure.
In fiscal 2021, over 13,000 companies, representing over 64%
of global market capitalization, responded to the survey.

Water
PolicyWe develop buildings and create neighborhoods that help preserve the water environment through measures such as the effective utilizationof water and replenishment of subterranean aquifers. We also preserve water resources through water conservation and effective use of water
resources together with our business partners, tenants and stores, and customers.

Environmental Pollution and Resources
PolicyWe prevent environmental pollution by observing laws, regulations, and ordinances relating to air pollution, water pollution, soil contamination,and hazardous materials, and we also work hard to curb emissions of pollutants and contaminants that are not subject to regulation by laws,
regulations, and ordinances. In addition, we take hazardous materials into consideration when acquiring land as well as in the building design
stage. We also ensure appropriate management and disposal, and thereby prevent impacts due to hazardous materials on the environmentor building users. Furthermore, when advancing construction, we strive to procure materials that lessen global environment load and reduce
the amount of waste produced.

Biodiversity Conservation
PolicyWhen carrying out a new development project, the Mitsui Fudosan Group confirms the presence of trees, forests, and other elements of thenatural environment that should be preserved on development sites, and we preserve, transplant, or conserve trees, forests and other naturalfeatures when needed. In developing regions with many natural areas, we assess environmental impact on plants, animals, and ecosystems
based on laws, regulations, and ordinances relating to environmental impact assessments and protection of the natural environment.

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Integrated Report 2022

PolicyBased on the framework, for procurement of funds, we issued green bonds, for which the use of proceeds is limited to projects that
contribute to solving environmental problems, three times in the past, utilizing our highly environmentally friendly green buildings.
・TOKYO MIDTOWN YAESU
Date of issue

July 14, 2022

Tenure5 to 10 years

Total Amountof Issue¥80 billion

Use ofProceeds

The full amount will be used as investment capital tofund TOKYO MIDTOWN YAESUTOKYO MIDTOWN YAESU is a large-scale, mixed-use
redevelopment project that will be the start of the ongoingredevelopment project in front of Tokyo Station. As forenvironmental certification, TOKYO MIDTOWN YAESU has
received the highest (S) rating under Japan’s CASBEE-architecture
certification for new buildings and plans to obtain either the highest(Five-Star) or the second-highest (Four-Star) rating in the DBJ
Green Building Certification. In addition, as a way to utilize green
energy to realize a carbon-free society, Mitsui Fudosan will launch
the “Green Energy Supply Service” in response to the needs oftenants. The service provides tenants a green energy environmental
value of “Non-fossil Fuel Energy Certificates with Tracking,” whichmeans that the energy is derived from the five solar power
generation facilities owned and developed by Mitsui Fudosan.
・50 Hudson Yards

Overview of the property
Location: Yaesu 2-chome, Chuo-ku, Tokyo
Scale of the Building:
・45 floors above ground and 4 floors below
ground (Block A-1)
・7 floors above ground and 2 floors below
ground (Block A-2)
Total floor area: Approx. 289,750 m² (totalof 2 blocks)
Uses: Offices, retail facilities, hotel,
elementary school, bus terminal, parking
lots, etc.
Schedule: Completion in August 2022
(planned)

・Nihonbashi Muromachi Mitsui Tower

Date of issue

January 21, 2022

Date of issue

September 12, 2019

Tenure10 yearsTenure5 years

Total Amountof Issue

US$300 million

Total Amountof Issue¥50 billion

Use ofProceeds

The full amount will be used for refinancing thedevelopment project costs of 50 Hudson Yards

Use ofProceeds

The full amount will be used for refinancing the purchase ofreserve floor space for Nihonbashi Muromachi Mitsui Tower

Note: Issued based on the framework at the time of issuing these bonds

Execution of Sustainability-Linked Loan
For our sustainability-linked loan, which sets targets consistent with the ESG strategy of a borrower and changes the interest ratedepending on the achievement of the targets, we execute loans based on our SLL Framework. In this, we have set a reduction targetof 46.2% by fiscal 2030 in Scope 1 and 2 emissions (compared with fiscal 2019) announced in our “Group Action Plan to Realize a
Decarbonized Society” formulated in November 2021. The following is a summary of SLL.
Number of
executions

13

Total amount¥79 billion(As of the end of July 2022)

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Our Base for Value Creation

Main Social Initiatives
Diversity and Inclusion

For details regarding the main initiatives being carried out, please refer to ESG Report 2022.
https://www.mitsuifudosan.co.jp/english/esg_csr/report/

Diversity and Inclusion Declaration
The “ ” logo adopted by the Group as a management
philosophy represents the principles of coexisting in harmony
with society, linking diverse values, and achieving a sustainable
society.
As a real estate developer, the driver of our efforts tocontinuously provide new value is a major asset of ours—ourpeople. Therefore, we have positioned the promotion of diversity
and inclusion as one of our most vital management strategies,
and the Group is coming together as one to create anorganization in which personnel with diverse values, capabilities,
and lifestyles can demonstrate each to the best of their abilities.

PolicyOur passionate, capable employees have a diverse range ofskills, experiences, and values; as such, we are working toensure an environment where they can demonstrate theirindividual abilities to the upmost, and recognize one another as
individuals, evaluated fairly regardless of their race, nationality,
religion, sex, age, presence or not of disability, gender identity,
sexual orientation, or other characteristics. To this end, we arepromoting workstyle reforms and enhancing our humanresources system so as to raise organizational productivity andenhance our employees’ work-life balance. We have madepromoting female participation a key theme, and set ourselves
Group-wide quantitative goals and qualitative action plans, andwe will formulate various measures to promote this as a united
Group.

Promotion Framework
Under our management’s commitment, the managing director
in charge of personnel bears ultimate responsibility forensuring diversity and inclusion-related initiatives are advanced,
centralized in the Personnel Department’s Workstyle Innovation
Department, with knowledge input from inside and outside theGroup.
Diversity and inclusion is a major theme in ESG activities.
Reports on our activities, policies for each fiscal year, and othermatters are discussed and formulated by the Board of
Directors. Furthermore, we are promoting this topic as a united
Group, and share policies at meetings at which Group
company presidents are present, while periodically convening
the Diversity and Inclusion Promotion Council.

Promoting Active Roles for Women
Promoting Active Roles for Women in the GroupThe essential aim of “diversity” is not the diversification of specificcategories such as nationality, age, or gender, but rather thediversification of perceptions of value. To further promote thisessential diversity by focusing on the key theme of promoting
active roles for women, the Group has set quantitative targets andqualitative activity plans for promoting these roles, and is enacting
a variety of measures throughout the Group.
An Environment Where People Want to Work for a Long TimeTo develop an environment where diverse personnel, whether
male or female, can play an active role, we are working to change
awareness throughout the organization and among ourmanagers. To do this, we are implementing unconscious bias
training and other measures for all our employees.
Through efforts by members of the Personnel Department, suchas discussions and individual interviews with all employees, we will
grasp the circumstances that employees face and their hopes,
and develop an environment and various systems, including thosethat support childcare and caring for others, accordingly. As an
example, to create an environment that supports both work andchildcare, we were quick to establish a flextime system forreduced working hours during childcare, a work-at-home system,a childcare leave system that exceeds statutory requirements, andin-office nurseries. We also provide returning to work aftermaternity/childcare leave training programs and we havemaintained a 100% return rate from childcare leave among regular
Mitsui Fudosan employees for 22 consecutive years, and have a
79% rate of childcare support leave among male employees.
Through improving the environment and actively hiring
women (with a female recruitment ratio target of at least 40%),
female employees are playing active roles in many departments
as corporate officers, company staff, and business line staff inJapan and overseas. As of April 2022, we had a 6.8% ratio of
women in management positions and a 22.8% ratio of womenin sub-section manager or equivalent positions. We areworking to increase the ratio of women in management
positions to 10% by 2025 and 20% by 2030.
For five consecutive years, Mitsui Fudosan has been selected
for inclusion in the MSCI Japan Empowering Women Index (WIN),
which has been adopted by the Government Pension Investment
Fund (GPIF) as an index for ESG investment.
For past 22 years*
Return Rate from Childcare
Leave Among Regular Employees * FY2000–FY2021

100%

Raising Motivation and Supporting Career Development
By conducting diversity and inclusion training, and other measuresfor organization heads, we will promote female participation andchange awareness throughout the organization as we offer female
managers career development support via a mentor system andother initiatives. Moreover, the working group we set up topromote female participation provides proposals and exchanges,
cross-meetings that allow young females in general positions
to interact, and seminars by women in active roles, and israising female employees’ motivation and supporting theircareer development.

Information exchange put on by the Diversity Management Promotion Project Teamfor employees on childcare leave(Mitsui Fudosan Retail Management Co., Ltd.)

Diversity and inclusion training for organization heads

Lecture and seminar (speakers included our former managing director and advisor on
our female participation, Masako Egawa, and her introducer)

Mitsui Fudosan Group
Get Connected and Grow Project
From fiscal 2022, we have been running
the “Mitsui Fudosan Group Get Connected
and Grow Project,” which holds group
joint training and networking events. In
addition to gaining confidence in theirskills and abilities, by holding joint events
within the Group, creating networks androle models among female employees
across companies.

6
e-learning(Diversity management, etc.)

Message from corporate officers at seminar-style training Discussions during seminar-style training

1

2

Seminar for young
female employees

Seminar for female
manager candidates(Fostering career awareness, etc.)(One-step-higher viewpoint andunderstanding roles)●Gaining confidence in skills and abilities●Building networks and information exchanges
among female employees across companies●Embodiment of role models and exchange●Actively disseminate and share theimplementation status

5

4

One-time training

Roundtable discussion by theme(Coaching skills, etc.)(Embodiment of role models and exchange)

3
Seminar for managers(Management skills, etc.)

Selected for inclusion in the MSCI Japan Empowering Women Index (WIN)THE INCLUSION OF Mitsui Fudosan Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS, OR INDEX NAMES HEREIN, DO
NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, OR PROMOTION OF Mitsui Fudosan Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE
THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

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For details regarding the main initiatives being carried out, please refer to ESG Report 2022.
https://www.mitsuifudosan.co.jp/english/esg_csr/report/

Human Resource Strategies
Recruiting Personnel from Diverse Backgrounds

To innovate the real estate business in the way we outline in ourGroup’s long-term vision, VISION 2025, there is a wide range ofknowledge sets that we will need to bring together. As such, weare proactively recruiting mid-career human resources who haveno experience in our industry or who were previously working indifferent fields.
We have put in place various training and mentoring systems
that enable greater activity for diverse personnel with varied career
histories and standpoints to demonstrate individuality based on
their respective experiences and abilities.
Our aim is for these diverse personnel to work together andcollaborate autonomously to produce new value and innovation.
Changes in Number of
Employees at Mitsui Fudosan

1,898(Persons)

2,000

Percentage of Mid-Career
Hires among Employees

Number of Strategic
Technical Staff Hired76

As of April 2022

(Persons)

80

Cumulative total:

63

60
44
40

(%)

25.0

21.0

20

0

1,332
1,200

15.0

800

10.0

400

5.0

Mar. 2016

Mar. 2022

0.0

13.0

Apr. 2016

Apr. 2022

Two of the main aspects of our initiative policy in VISION 2025 are
to innovate business models by harnessing real estate tech anddramatically grow the overseas business. Our focus now is on
recruiting and training global and digital transformation (DX)personnel who can support those goals.
As globalization continues, we aim to have overseas profit
constitute about 30% of our consolidated operating income in or
around the year 2025. To that end, we have been actively
recruiting foreign nationals and Japanese new graduates or
mid-career employees with global experience. Further, we are
striving to create global-oriented staff through measures such as
mandating language learning over several months for younger
employees, conducting specific language training for mid-level
employees, introducing a one-year overseas internship program,and having stints working overseas through job rotation.
We are also aware that digital transformation (DX) has had amajor impact on conventional business, and to raise its real,applicable value, we are accelerating efforts to apply digital andreal estate technologies. To do this, we are actively hunting downhighly specialized mid-career individuals who will be an immediate
asset to our information and communications technology (ICT).

Integrated Report 2022

Apr. 2016

Apr. 2022

Initiatives for Human Resource Development andHuman Resource Management

Recruiting and Training Global and DX Personnel

79

Number of Employees
Stationed Overseas

20.0

1,600

0

We are also applying their capabilities to each of our businessdomains to spur innovation.
In our existing businesses, we are conducting various types oftraining under the belief that all employees need to further promoteDX.
We were selected as a Noteworthy DX Company for 2022 by
the Ministry of Economy, Trade, and Industry and the Tokyo Stock
Exchange.

Individual employees hone their professional knowledge and abilities,
and increase their ability to create added value. We transformteam performance through the integration of diverse values andskills. Our basic approach to human resource management is totreat each employee as an individual and create a stage on which
they can hone their professional knowledge and abilities.
Mitsui Fudosan aims to develop a diverse group of employees,
who are able to make full use of their individual attributes, withboth specialized and advanced business knowledge, and abroader perspective. In order to achieve this goal, we haveadopted a basic policy on personnel development that broadens
the capabilities of each individual by combining four opportunities(1: OJT, 2: annual interviews between the Personnel Department
and each employee, 3: job rotation, and 4: training programs).
In addition, to support career visions based on employees’
diverse values, we are putting in place a number of systems,
including a personal statement system related to changing official
duties or when someone wishes to change departments, and asystem to allow contract employees to become regular
employees. Going further, to deepen understanding of ourbusinesses, one of our initiatives aimed at expanding experiencein business domains separate from our existing businesses, weare looking to establish systems that include a business proposal
system, a side-job system to help create innovation and make asocial contribution, a leave system whereby employees can taketime to study at graduate school, and a graduate school tuition fee
subsidy system. In these ways, we will promote the fostering ofissue-resolution capabilities and the ability to create added value inthis very changeable business environment.

❶OJT
We provide on-the-job training through work on-site as the basis
for personnel development. Through specific jobs in theworkplace and communication between employees, we develop
the capabilities necessary for job performance in a planned,
continuous fashion.

Evolution and creationof new value in the realestate business❷Annual interviews between the Personnel
Department and each employee
To provide support aligned with individual employees’ visions forcareer development and skill development, we offer many
opportunities for face-to-face discussions with the Personnel
Department and department heads.
Annual interviews with the Personnel Department aid ingrasping employee issues, an environment for development, andindividual concerns, as well as in conducting fair evaluations
through understanding of the working circumstances of individual
employees and those around them.

Execution abilities
as a team
Broadening professional,
specialized knowledge andcapabilities❸Job rotation
We develop professionals with a wide range of specialties by job
rotation. Our aim is to develop employees and an organization
which can adapt to an ever-changing environment, and this isachieved by further deepening the experience and knowledge ofeach employee through work experience in multiple areas, whilebolstering expertise through focusing on the work the employee isin charge of.

Human resource management❹Training programs
Between level-based training and training that can be selected tocater to individual employees’ personal roles, skills, or capabilities,
and other measures, we have more than 100 diverse programs
under way. So that everyone can voluntarily work to improve theirown abilities, we are preparing application-based training thatincorporates interaction between employees from different
industries.

Work-Life BalanceIntegration ofdiverse values

Interview
with employees

Job rotation

Training programs

OJT

For details regarding the main initiatives being carried out, please refer to ESG Report 2022.
https://www.mitsuifudosan.co.jp/english/esg_csr/report/

Promotion of Workstyle Reform
To respond to the dramatically changing needs of society
and create new value, under the concept of workstylereform, the Company is building organizations where
human resources with diverse talents, lifestyles, andperceptions of value can maximize their respective
abilities. We also are striving to optimize work-life balanceby improving work efficiency in all departments, optimizing
the allocation of work, and reducing employees’ working
hours. It is our belief that an appropriate work-life balance
carries great benefits including enhancement of employees’
private lives, self-improvement, and achievement ofchildcare or nursing care alongside work. We further view
this balance as forming workplace environments where
diverse employees maximize their individual abilities,
leading to the creation of higher value and sustainablegrowth for the Group.

Initiatives for Workstyle Reform

Reformingawareness● Foster awareness with continued communication of top management’s
message● Utilize internal public relations magazines and email newsletters to
conduct educational activities and share expertise● Encourage the taking of continuous annual paid leave, and set targets
for yearly use of leave (7 days per half year; 14 days per year)● Conduct training on health and safety for organizational heads● Evaluate efficiency as a factor involved in personnel evaluation● Support departments’ initiatives through the D&I Planning Department

Work reform in● Establish a customized workstyle in each department, and promoteorganizational
work efficiency improvements
units● Support productivity improvements through the use of IT● Utilize the WORK STYLING Shared Office

Infrastructure
improvements● Introduce a work-at-home system● Enable recording of PC usage hours and deploy a usage control system● Introduce a flextime system (no core time)

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Promotion of Health Management
We view the health and safety of all employees as an important
issue for management in strengthening the Company’scompetitiveness and achieving sustainable growth. While
enacting a Health and Productivity Management Declaration andclarifying related policies, we take action to maintain and improve
employees’ health to create environments where employees canwork energetically in ways suited to their individual lifestyles.
Specifically, we established a Health Management Center,
under the charge of the managing director in charge of
personnel affairs, to conduct consultations for employees by
personnel staff, implement health checkup expense subsidies
for employees and their spouses, hold health-related events,and so on. In consultation with the health insurance association,
we actively promote initiatives that include planning and verifying
the effects of measures to address health issues.

Health and Productivity Management Declaration
1.Our progressive spirit and attitude of flexibly tackling toughchallenges forms the basis for our approach of supporting
individual employees’ efforts to create new value from thesidelines via health and productivity management, and we will
tie that into the Company’s sustainable growth.

Supply Chain Management

The Mitsui Fudosan Group’s Sustainable Procurement Standards

Health promotion event “&well Festa”

Health management
support service“&well”

In recognition of our health management-related initiatives, forsix consecutive years we have been selected by the CertifiedHealth & Productivity Management Outstanding Organizations
Recognition Program (“White 500,” Large Enterprise Category)of the Ministry of Economy, Trade, and Industry and Nippon
Kenko Kaigi as a corporation that practices excellent healthmanagement.

2. We will actively invest in our employees’ physical and mental
well-being, and promote the creation of workplaces where
diverse personnel are excited to work.
3. Through neighborhood creation, we will work to maintain andpromote health in the region and in wider society. Equally, we
will use health and productivity to resolve the issues thatsociety is facing, to contribute to a healthier, richer future.

Human Rights Initiatives

For details regarding the main initiatives being carried out, please refer to our website.
https://www.mitsuifudosan.co.jp/english/esg_csr/society/03.html

PolicyThe Mitsui Fudosan Group respects basic human rights andcomplies with laws and regulations concerning workers’ rights ineach country where it conducts business.
Basic Approach to Human Rights
The Mitsui Fudosan Group complies with laws and regulations ofeach country and region in which it conducts business activities.
(1) We will eliminate all discrimination on the grounds of race,
nationality, religion, sex, age, disability, or sexual orientation.
(2) We will not tolerate any form of harassment, including sexual
harassment or abuse of power.
(3) We will not permit child labor or forced labor.
(4) We respect freedom of association and the right to collective
bargaining.
We also support and respect the basic rights for workers set out
in the ILO Declaration on Fundamental Principles and Rights at

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For details regarding the main initiatives being carried out, please refer to our website.
https://www.mitsuifudosan.co.jp/english/esg_csr/society/04.html

Work and the UN’s Guiding Principles on Business and Human
Rights. Furthermore, we pursue methods to ensure that basic
human rights are respected in countries and regions that do notadhere to internationally recognized basic human rights.
Initiatives for Raising Human Rights AwarenessMitsui Fudosan has established a Code of Employee Conduct
with regard to human rights. We are also building a Group-wide
framework for respecting human rights by establishing the internal
Fair Employment Screening and Human Rights AwarenessRaising Promotion Committee and organizing Fair Employment
Screening and Human Rights Awareness Raising Liaison
Conferences with each Group company. Additionally, we arecontinuously working to improve understanding and awarenessregarding human rights through initiatives such as holding humanrights awareness training for all Mitsui Fudosan employees.

As a corporate group that supports the foundations of life suchas offices and housing, the Group recognizes the need to fulfill
its social responsibilities at a higher level. To this end, we
believe that the entire supply chain should work together topromote sustainable procurement that contributes to theresolution of ESG issues. The Group has formulated the“Sustainable Procurement Standards” outlining the basic
guideline and we published these standards on our website in
December 2018 and have notified our main business partners.
In February 2022, we revised these standards to prepare forhuman rights due diligence, and include basic guidelines on
items to be complied with or actively promoted by both the
Mitsui Fudosan Group and its business partners related toordering.
We share these standards within the Group to build andoperate an ordering and contract process in line with the natureof our business, and also notify and request the understandingof our business partners. We address the promotion ofsustainable procurement throughout the supply chain to realize
a sustainable society.

1. Compliance with Laws andRegulations, etc.

Companies doing business with the Mitsui Fudosan Group shall not only comply with the applicable laws and regulations in their home countries
and the countries and regions where they conduct business, but shall also respect internationally recognized standards of conduct.

2. Respect for Human Rights
in Business Activities

In order to ensure the implementation of business activities with consideration for human rights, companies shall identify in advance the potential
adverse impact of their business activities on the human rights of various people, including foreign populations and indigenous peoples, and takepreventive measures and/or remediation measures, making reference to international human rights norms such as the Universal Declaration of
Human Rights.

3. Respect for Human Rights
Related to Labor

Companies shall respect the human rights of workers, in line with international human rights standards, including the core labor standards
established by the International Labour Organization (ILO), while also complying with relevant laws and regulations.

4. Safe and Healthy Working
Environment

In addition to complying with the relevant laws and regulations, companies shall also pay due attention to domestic and internationalguidelines on worker safety and health, and make efforts to provide a safe and healthy working environment that minimizes work-related
injuries and physical and mental illness.

5. Establishment of Business Ethics

Companies shall conduct business activities based on high ethical standards in addition to compliance with the law.

6. Ensuring Quality

Companies shall ensure and strive to enhance the safety and quality of the products and services they provide.

7. Consideration for theEnvironment

Companies shall proactively address global environmental issues such as resource depletion, climate change, and environmental pollution,
while also considering local environmental issues to ensure the health and safety of the people in the communities involved.

8. Information Security

Companies shall prevent leaks of confidential information and personal information and work to strengthen information security.

9. Crisis Management andBusiness Continuity Plan

Companies shall take appropriate measures to ensure the safety of their employees and other stakeholders, and to resume businessactivities as soon as possible, in the event of a natural disaster or accident.

Strengthening Human Rights Due Diligence
The Company is a member of the Japan Platform for MigrantWorkers towards Responsible and Inclusive Society (JP-MIRAI),
which was established in January 2020 to solve the issues facedby migrant workers in Japan through the collaboration of various
stakeholders. The Company participates in the “Consultation
and Relief Pilot Project” launched by JP-MIRAI in May 2022
(eight private companies including the Company participate).
This platform is the first of its kind in Japan, and provides a
package of an integrated mechanism covering information
provision to foreign workers, a multilingual consultation desk andsolving of highly independent and neutral disputes, and a
feedback service to companies on human rights risks.
Specifically, JP-MIRAI provides foreign workers working forparticipating companies with the following: (1) establishment of a
portal site that provides useful information for working in Japan;(2) establishment of a consultation desk which can lower
psychological hurdles for foreign nationals as they can talk intheir native languages; (3) accompanying support for dealing
with problems that are difficult to solve on one’s own; and (4) use
of non-statutory dispute resolution mechanisms in the event of adispute with an employer. JP-MIRAI collects data from theabove services to analyze the issues faced by foreign workers.
The Company will utilize the human rights violation risk
information regarding foreign workers fed back from JP-MIRAI
and strive to strengthen its supply chain management andhuman rights due diligence.

Overview of “Japan Platform for Migrant Workers
towards Responsible and Inclusive Society”
Established in January 2020 by various stakeholders including
private companies, local governments, NPOs, experts andlawyers to gather and collaborate to solve the issues faced bymigrant workers in Japan and to make Japan a trusted
destination for workers from around the world. As of May 2022,
there were 443 participating members. Private companies and
JICA (Japan International Cooperation Agency) serve as the joint
secretariat.

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Female Employees Roundtable Discussion
The Mitsui Fudosan Group accepts challenges.
Making the most of individuals and contributing to the Group,
we will create a more pleasant workplace for women.

Meaning of working for Mitsui Fudosan Group

Kodama They are not telling me that such an approach will not
work, but there is a network of people inside and outside theCompany who help me to make it happen. This is an attractive
point for my work in this Group, and I feel satisfied working
where I can put my own thoughts into shape.
Tochigi What surprised me when I joined Mitsui Fudosan
was that people in the Company helped me regardless ofthe department or when you joined the Company. I was a
mid-career hire, and although I had some experience as aworking adult, I still didn’t know how to work in this industry,and I had no acquaintances in this Company. But as I wastold to seek advice from a certain person, I visited him and hekindly gave me advice even though I was not acquainted withhim. Other than that, I was also introduced to a more suitableperson to consult with, and I experienced my connections
being expanded more and more, and I realized that problems
were solved or I had good discussions. So, I was impressedby this culture.
Utsunomiya The real estate business involves a lot of people
because the size is big and the length of projects is long. Since
the entire Group, including the Group companies, is involved ina series of work from purchasing land to developing, selling andoperating a property, it is impossible to work smoothly unlesspeople are well connected. Because we all know that working
separately does not bring success, there is a culture of always
thinking not only about one’s own work, but also about how togive it to the next person and how they can do it well.
Yoshida I work for Mitsui Fudosan Investment Advisors andmy job is building private real estate funds and doing asset
management of real estate assets incorporated into thefunds. I find the job of project management rewarding. In thisjob, I constantly consider what is best for each of the many
stakeholders involved, such as investors who invest in thefunds, and coordinate the entire process. I can work on a big
project with real estate that you wouldn’t normally be able towork on or with investors that you wouldn’t be able to meet.
So, project management is very interesting.
Tochigi Project management is a key phrase that made mechange my job to Mitsui Fudosan. In my previous job, I worked
for a manufacturer and was stationed in Europe. I had an

opportunity to work on a project basis, and I found project
management itself very interesting. So I joined Mitsui Fudosan,
which is closely related to daily life and conducts project
management as part of its business. I am currently in charge
of office building development. Our Company’s development
projects are large, and there are many difficult matters todeal with, but through discussions with various people, suchas general contractors and design offices, we can move theprojects forward little by little with their help. I find such overall
job management very satisfactory and enjoyable.
Utsunomiya We, Mitsui Fudosan, as a developer, are notexperts specializing in a particular field, but are trained tomaximize the strengths of our partners, who are experts, andto achieve our goals, with diverse and broad perspectives.
Regardless of the scale of the project, it can be said that our
staff are trained by many external parties.
Tochigi I enjoy the sense of managing and moving forward witha project that involves a large number of people and solving
problems. I also find it rewarding to build relationships of trustwith people with various personalities and strengths to form ateam.
Kodama I want to work with this person again or that person
wants to work with me again—that kind of relationship is anasset to me, and is also an asset to the Company.
Tochigi Exactly. I feel that we are building relationships that
continue not only during the project, but even after it’s over.

In what situations do you find your work at the Mitsui Fudosan Group satisfactory?
Nagai When I work at Mitsui Fudosan, the first thing I think
about is that there is a culture where people accept andcooperate with me when I tell them what I want to do. People
around me give advice regarding my thoughts, and I feelexcited and satisfied when an idea expands and takes shape.
For example, I am in charge of the operation of a resort hotel in
Toba, Mie Prefecture, and wanted people to know about Mie,so I proposed a local product sales meeting and an in-house
pearl lecture by inviting a lecturer. The people I work withhelped me, and I was able to make it happen. Sales were very
good and we were able to hold the event twice last year.
Kodama Indeed, there is a culture to make you try new thingsin our Group. I am in charge of condominium sales. Because of
the COVID-19 pandemic, it has been difficult to conduct sales
activities in person, so I suggested a sales method in which we

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communicate with customers online for all procedures except
for making sales contracts, which is something that has to bedone in person. There are a lot of times when we don’t know
if we can understand our customers’ needs well online or if we
can make a contract without seeing the actual property, andsome people said that the existing way is better. But somepeople are willing to help us because we can’t take on new
challenges without this opportunity. In fact, the property I was
most recently in charge of is being sold using this method, andthe contract is progressing smoothly.
Nakayasu Do you mean that there are customers who make acontract without actually visiting the planned site or model roomof the property?
Kodama That’s right.
Nakayasu That’s amazing.

Working styles where diversity has an advantage
Do you feel that your personality and experience are advantageous for your work?
Nakamura I was in charge of LaLaport’s operations in thepast, and I realized that what I noticed was different depending
on my life stage. Especially when it comes to the safety andsecurity of retail facilities, although not much had bothered me
before, when I had a child, I noticed, “This height is dangerous
because it may hit an infant’s face,” and “When a child isabout three years old, these decorative promotional products
might be swallowed.” I often experienced that when I informed

what I noticed to others, and then improvements were maderight away, which was very rewarding. In our sales promotion
activities, in order to find out how to make mothers raisingchildren come to the retail facilities, targeting about a hundred
employees raising children in the Company, we conducted
a questionnaire survey. The resulting ideas from this survey
were incorporated into measures, and the results were highly
appreciated by customers.

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Nakayasu In B2C work, you can incorporate your thoughts andwhat you realized in your work, and feel the customer’s reaction
to it directly. The sale of condominiums is the same.
Kodama Some of the customers who are consideringpurchasing a condominium are single, but most customers arefamilies. Because I have a child, I can utilize my own experiencesin the sales promotion, like, I can advise customers about needs
for changing housing, such as having this type of layout will begood when starting a family in the future.
Nakayasu For example, do you think men and women havedifferent needs and information?
Kodama Men often pay more attention to the quantitative
aspects such as property price, but women tend to focus on
the qualitative aspects. Some of these customer needs havealready been recognized by customers, while others only cometo light when we make suggestions. Therefore, in order to create
new products and differentiate our products from those of othercompanies, we are not only reflecting customers’ opinions in
our products, but everyone is joining the discussions about what
we can newly suggest to our customers every day. Because“housing” is a basic item, there are many different customers, so

in order to continue discussions from all perspectives, diversity
on the part of employees is also important.
Nakayasu How about in the B2B business?
Tochigi In a large-scale development project, for example,
there are many occasions to have discussions with external
parties, such as local governments, neighbors of properties, andlandowners. Depending on the other party or the purpose of the
discussion, the person to go to in the discussion is determinedaccording to the personality and position of individual staff
members; like, I may be asked “this time, Tochigi-san is theappropriate person to go to,” or for another occasion, it might
be better for the team leader to go. Because not everyone
excels in all tasks, I think it is important for us to share roles on
the team and decide who should do what on the spot. We all
work together to promote our business, but as there are diverse
persons, as to who should do what task on each occasion, I feel
it is important to put the right person in the right place.

my boss at the time, and he set up a team with me as theleader. He thought that rather than reducing Yoshida’s duties
because of her constraints, it would be better for her to workwith her team to realize what she wanted to do. I am very
grateful to him because he tried to solve the problem bymaking friends instead of carrying problems by myself.

Utsunomiya Since there is no Superman, it’s important to shareyour roles by involving your boss and people around you by saying“Please do this. I’ll do that.” That also serves as a risk managementin preparation for unexpected situations. Regardless of gender,
each person has different circumstances and specialties. Get help
at times and help when someone is in trouble. I hope that thesense of mutual relationship will spread more and more.

Toward the future of the Mitsui Fudosan Group
What do you think of the current workplace in terms of women’s ease of working?
Tochigi Most of the managers around me are men, andsome of them go out for drinks on weekday evenings andplay golf with business associates on holidays. I think there
will still be a style of working in such a way, but recently, thenumber of women in managerial positions has been increasing,and they have created different work styles from those ofprevious managers. Recently, I had the opportunity to talkwith colleagues in my department about the image of the nextmanagement position, and the result was, “What we feel when
we look at managers today, and how we become new types of

Mikiko Utsunomiya

Riyo Tochigi

Satoko Nagai

Aya Nakamura

Miho Kodama

Yoko Yoshida

Rie Nakayasu (facilitator)

Mitsui Fudosan Co., Ltd.
Managing Officer
Joined the Company in 1991 as a new graduate

Mitsui Fudosan Co., Ltd.
Office Building Division, Development Group,
Office Building Development Department (III)Joined the Company in 2020 as a mid-career hire

Mitsui Fudosan Co., Ltd.
Hotels and Resorts Division, Operation and Management Group,
Hotel and Resort Management Department (II)Joined the Company in 2007 as a mid-career hire

Mitsui Fudosan Retail Management Co., Ltd.
Planning Section, D&I Planning Department
Joined the Company in 2013 as a new graduate

Mitsui Fudosan Residential Co., Ltd.
Development Section, Urban Development Department (II)Joined the Company in 2003 as a mid-career hire

Mitsui Fudosan Investment Advisors, Inc.
Investment Advisory Dept./Global Investment Advisory Dept.
Joined the Company in 2014 as a mid-career hire

Mitsui Fudosan Co., Ltd.
D&I Promotion Department, Personnel Department
Joined the Company in 2010 as a mid-career hire

Enhancing a work-life balance
Have you ever had a hard time achieving a good balance between work and private life?
Nakamura When a child gets sick, you may have to take time
off urgently. In the past, we just felt sorry for our colleagues. But
in 2019, Mitsui Fudosan Retail Management appointed a female
corporate officer for the first time, and based on her opinion, an
information exchange meeting for employees raising children
was started. By listening to the experiences of people in a similar
situation and giving advice to each other, I was able to change
my awareness in a positive manner and I was relieved that I
wasn’t alone, I have friends.
Kodama Mitsui Fudosan Residential also has a large
percentage of male employees, so sometimes working
mothers raising children in each department used to beisolated. In order to solve this problem, we invited working

85

Integrated Report 2022

mothers from across departments and job categories and hada roundtable discussion, and many of the opinions that cameout were that information could not be shared with everyone
and that colleagues would not understand. These opinions
were compiled and fed back to the Personnel Department.
Utsunomiya Rather than complaining that they don’t listen to us
or they would not understand us, it is important to communicate
the opinions by ourselves. If you need to rely on others in yourbusiness, it may be difficult for you to state your request. Our
Group has a base to accept various opinions, so you better try
to convey your thoughts without hesitation.
Yoshida In the past, when I was caring for my family member
and couldn’t find a good balance with my work, I talked withleaders and managers, ultimately depends on our awareness[of the need for diversity].”
Kodama There are various styles of work, and each has its
advantages and disadvantages. Rather than simply denying
the existing work styles, we must communicate our opinions
properly while respecting the feelings of other persons. I thinkthat will make the work go smoothly.
Utsunomiya I think empathy is a strength of women. WhenI joined the Company, there were very few women in general
positions and I had to adapt to the way men think and work.
But now the working environment is different. Even if there is asituation in which discussions go in a particular direction, if you
have empathy, you will never deny the other person and canfind a point of contact by saying that “Although I understandyour idea, this view is also important.”

Nagai In the past, it was difficult for me to state my opinion
when I thought I might be wrong, but recently I have started
to think that by stating my opinions I may present a basis forjudgments, so I am doing it little by little.
Utsunomiya In reality, there are situations where decisions
are made based on the logic of men and they are adjusted
accordingly. However, in order to promote D&I, it is essential forevery employee to change their thinking and behavior. I believethat even if we are in a different position, by continuing to havefrank and persistent dialogue, we will transform ourselves into
a company and society that accepts diversity. For the next
generation, we now have a heavy responsibility.

Note: This roundtable discussion was conducted while taking precautions against COVID-19.

Integrated Report 2022

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Our Base for Value Creation

DX Promotion Initiatives

Business Reforms

Completely Cashless Operations in Tokyo Dome

Further Accelerating “Real Estate as a Service”
As one of three visions in the Mitsui Fudosan Group’s long-term vision, VISION 2025, the Group calls for “harnessing technology toinnovate the real estate business.”
In an era of great changes and diversification in lifestyles, we advocate “Real Estate as a Service,” which provides real estate tocustomers as a service rather than a thing. This service is based on actions such as “working,” “living,” and “enjoying,” and we willfurther strengthen digital transformation (DX), which is a crucial and necessary means to realize this.

Business Reforms

Tokyo Dome

Office Buildings

Using Robots at TOKYO MIDTOWN YAESU
Mitsui Fudosan has been studying the use of robots in office buildings for some time, and to achieve vertical and horizontal movementof robots, at TOKYO MIDTOWN YAESU, in addition to the active use of automatic doors, we enabled communication andcoordination with elevators and security doors. As a result, fully autonomous running of robots is realized, and not just limited to“demonstration experiments,” but a full-scale introduction of robot utilization will start from this facility.

To promote digital transformation (DX) in the biggest renovationin our history, completely cashless operations were introduced
within Tokyo Dome from March 2022. By using mobile
payment terminals, not only all the retail stores and on-site
ticket counters, but also sales of food and drinks in the stadium
have enabled complete cashless payment. Reducing contact
opportunities such as giving and receiving cash is expected tohelp strengthen measures against the spread of infection, andalso customer wait times at retail stores and other facilities canbe reduced.
Visitors can enjoy easier, smoother shopping and gamewatching at the stadium thanks
to a range of convenient cashless
payment options. In addition, a
DX Support Desk at the stadium
will offer step-by-step assistanceto visitors who are using cashless
payments for the first time.

東京ドームは
完全キャッシュレス化
現金はご利用いただけません
COMPLETELYCASHLESSDX サポートデスク
DX サポートデスクでは、キャッシュレスに関するお問い合わせに対応いたします。

Provided by The Yomiuri Shimbun

Workstyle Reforms

Revamping the Core System with a Full-Cloud System to Realize Operational Efficiency and Mobile Work

Provided by Takenaka Corporation● Delivery robot: Providing a food delivery service using arobot, a first for an office building

Delivery robot “RICE”● Cleaning robot: Autonomous driving for complete labor-saving
in cleaning jobs, which was not possible in the past

Mitsui Fudosan revamped its core decision-making andaccounting systems and introduced new systems in April
2019. In addition to standardizing business processes that had
previously been individually optimized for each department, we
also integrated independent decision-making and accounting
systems to build a full cloud system. By standardizing andstreamlining company-wide operations, eliminating redundantdata entry and digitizing workflows, we will reduce approximately
58,000 hours of workload annually.
We plan to migrate all IT systems, including other core systems,
to the cloud in the future, as the use of the cloud makes it
possible to reduce the operational load and strengthen BCP/DR.

● Advantage 1: Achieves standardization and efficiency ofcompany-wide operations and simplifies operations

All of the operational processes which were different in each department arelisted on the system, and a standardized management method is used.

● Advantage 2: Linking data shortens work and the check time,and reduces mistakes

By pre-formatting the items to be entered in the approval form and linking
the data entered in the approval form with the accounting operation,
mistakes are reduced and the check time is shortened.

● Advantage 3: Digitization of workflows and the introduction ofmobile approval have made it possible to work anywhere

By digitizing workflows that used to be paper-based, approximately
840,000 sheets of paper are reduced per year, and also, printing, mailing,and storage costs are lowered, so that workload associated with
document management and operation is reduced. In addition, a mobile
approval function is introduced to promote mobile work, allowing workers
to work anywhere.

Cleaning robot “RULO-Pro”

BeforeManualinput

After
Manualinput

Checking the other party● Transport robot: By making it

possible to easily transport heavyloads, it is possible to employ adiverse range of human resources.

Examining contracts
Manualinput

Settlement

Sealing/Ordering

Payment/Billing

Accounting

Accepting orders/
Ordering

Funding preparation
Finalized payment/receipt
Entering slips

Entering slips
Funding preparation

Transport robot “THOUZER”
Provided by Takenaka Corporation

Integrated Report 2022

Checking the other party
Examining contract

Sealing procedure

Manualinput
Manualinput

87

Settlement● There are individually optimized rules for each department● Individual departments enter data separately● Owns and operates on-premises hardware

Further linking to theaccounting department● Standardize and streamline operations under company-wide rules● Eliminate redundant data entry by linking data

Integrated Report 2022

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Our Base for Value Creation

Corporate GovernanceInitiatives for Enhancing Corporate Governance
1994

2001

2005

2006

2007

2008

2009

2010

2011

2012

2015

2016

2017

2018

2019

2020

2021

2022

Introduced Outside Auditors
Introduced a Corporate Officer System(separation of management and execution)
Introduced Outside Directors

1 person

2 persons

3 persons

4 persons

Established the Corporate Auditor’s Department(appointment of dedicated employees)
Introduced the Compensation Advisory Committee
and Nomination Advisory Committee

Established Compensation Advisory Committee

Appointment of outside
director as Chairman

Established Nomination Advisory Committee

Appointment of outside
director as Chairman

Corporate Governance Structure
Shareholders’ Meeting❶ Board of Directors❷ Compensation Advisory Committee

Composition of
the Board of Directors

Composition of the Compensation Advisory Committee

Outside:33%

Chairman
4 outside directors

2 internal directors❸ Nomination Advisory Committee
Composition of the Nomination Advisory Committee❹ Board of Corporate Auditors

Percentages of Men and Womenon the Board of Directors
Women:

48%

12

managing
directors Internal:
67%

1
Internal:

Execution Framework

8

Chair: Chairman of
the Board

92%

11
Outside:60%

2

Women:
20%

1
5

corporate
auditors
Men:

3

80%

4

❼ Certified Public Accountant

2 internal directors❻ Executive Management Committee❺ President and Chief Executive Officer

Departments/Divisions

Integrated Report 2022

Men:

corporate
auditors

40%

Percentages of Men and Women on
the Board of Corporate Auditors❹ Corporate Auditor’s Department❺ Corporate Officers

89

5

12

managing
directors

Chairman
4 outside directors

Composition of Board of
Corporate Auditors

Audit Department❽ Committees
Strategy Planning Special Committee
Risk Management Special Committee
ESG Promotion Committee

Integrated Report 2022

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Value Creation Efforts and Base Building|

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Organizations in the Corporate Governance Structure❶ Board of Directors
The Board of Directors, headed by Chairman Hiromichi Iwasa
and comprised of twelve members, including eight internal
directors (Hiromichi Iwasa, Masanobu Komoda, Kiyotaka
Fujibayashi, Yasuo Onozawa, Takashi Yamamoto, Takashi
Ueda, Takayuki Miki, and Wataru Hamamoto) and four outside
directors (Masafumi Nogimori, Tsunehiro Nakayama, Shinichiro
Ito, and Eriko Kawai), decides on issues material to Mitsui
Fudosan and monitors the execution of business by managing
directors. In addition, under Article 373 (1) of the Companies Act,
we have designated a special managing director who may pass
judgment on the urgent acquisition of assets via bidding, etc.,
when so empowered by the Board of Directors under Article 362(4) of the Companies Act. The corporate auditors also attend
meetings of the Board of Directors and provide opinions asnecessary.
❷ Compensation Advisory Committee
The Compensation Advisory Committee, headed byindependent outside director Masafumi Nogimori as Chairman
and comprised of six members, including four independent
outside directors (Masafumi Nogimori, Tsunehiro Nakayama,
Shinichiro Ito, and Eriko Kawai), President and Chief Executive
Officer Masanobu Komoda, and one internal director (Yasuo
Onozawa), advises on matters pertaining to the compensationof managing directors when the Board of Directors makes
resolutions on such matters.
❸ Nomination Advisory Committee
The Nomination Advisory Committee, headed by independent
outside director Masafumi Nogimori as Chairman andcomprised of six members, including four independent outside
directors (Masafumi Nogimori, Tsunehiro Nakayama, Shinichiro
Ito, and Eriko Kawai), President and Chief Executive Officer
Masanobu Komoda, and one internal director (Yasuo
Onozawa), advises on matters pertaining to the nomination ofmanaging directors and corporate auditors, as well as theappointment and dismissal of managers when the Board of
Directors makes resolutions on such matters.
❹ Board of Corporate Auditors
The Board of Corporate Auditors, headed by senior corporate
auditor Masatoshi Sato, is comprised of two internal auditors(Masatoshi Sato and Hiroyuki Ishigami) and three outside
auditors (Yoshitaka Kato, Yasushi Manago, and Yukimi Ozeki),
for a total of five auditors, and formulates auditing policies anddetermines assignments. It also receives reports and discusses
material items on audits conducted according to these policies
and assignments. Note that the Corporate Auditor’s
Department has been established specifically to assist thecorporate auditors with their work, and there are two dedicatedemployees.

Enhancement of the Effectiveness of the Board of Directors❺ Corporate Officers
Mitsui Fudosan has introduced a corporate officer systemwith the aim of creating a business execution framework thatbest suits its operating environment and activities. By
promoting the separation and reinforcement of the
management and executive functions, a role that waspreviously undertaken by managing directors, the systemenhances management soundness and efficiency. In addition,seeking to further reinforce the management of the Mitsui
Fudosan Group, we have expanded the range of managers
across the Group and introduced a Group corporate officer
system, under which executives at Group companies havebeen given a status and mission similar to those of thecorporate officers.
❻ Executive Management Committee
The Executive Management Committee, consisting ofexecutive corporate officers, has been formed to deliberate
and report on important matters related to business execution,and supervises internal control and risk management. Fulltime
corporate auditors also attend meetings to stay informed ofimportant decision-making processes and the status ofbusiness execution, and provide opinions as necessary.
❼ Certified Public Accountant
Mitsui Fudosan has concluded an auditing contract with KPMG
AZSA LLC as its certified public accountant, which conducts
audits. There is no shared interest between the auditor and theCompany, nor between employees conducting operations forthe auditor and the Company.
❽ Committees
Mitsui Fudosan has established committees headed by the
President and Chief Executive Officer. The Risk Management
Special Committee is an organization that manages work risks,
while the Strategy Planning Special Committee is anorganization that manages business risks. Through these, we
identify and assess risk issues and draft countermeasures. In
addition to these, the ESG Promotion Committee manages theCompany’s initiatives involving sustainability.

Evaluation of Board of Director Effectiveness
Aiming to further enhance the functions of the Board of Directors, the Company analyzes and evaluates the efficacy of theBoard of Directors every year to identify issues and respond to such issues. As a means of analysis and evaluation, theCompany uses a third-party organization for preparation and analysis of questionnaires. The evaluation and improvement
process for the effectiveness of the Board of Directors is as described in (1) below.
In the evaluation of the effectiveness of the Board of Directors in fiscal 2021 (current year), each evaluation item was generally
highly evaluated, as shown in (2) below, and it was confirmed that the Board of Directors’ efficacy was properly maintained.
In the future, we will continue to identify issues and formulate action policies as described in (3) below.
(1) Evaluation and improvement process① Interviews and free-form
questionnaires targeting all
managing directors andcorporate auditors② Analysis and evaluationby the Board of Directors

Process of utilizing a third-party organization■Evaluation items● Board of Directors’ structure (number of members, ratio of executive to non-executive members, diversity, etc.)● Status of operation of the Board of Directors (number of meetings held, attendance rates, time spent for

deliberation, number of items deliberated, provision of information, questions and answers, etc.)● Others (responses to issues raised in the previous evaluation of Board of Directors’ efficacy; the content ofactivities at the Compensation Advisory Committee and Nomination Advisory Committee, etc.)③ Identifying issues④ Responding to identified issues(2) Issues identified and actions taken in FY2020 (previous year)<Issues><Actions taken>

Enhancement of discussions on important
medium- to long-term issues

Positioning decarbonization initiatives as priority issues of the Group, the initiatives’ policy and direction were discussed
by the Board of Directors and the “Group Action Plan to Realize a Decarbonized Society” was formulated and announced
in November 2021. The status was also reported to the Board of Directors and the progress and direction of
decarbonization of the Group were discussed.

Deepening the understanding of ourCompany’s projects among outside officers

In light of further expansion of overseas business of the Group, an outside officers’ meeting was held under the theme of“Personnel Structure and Risk Management at Overseas Subsidiaries” to discuss the improvement of governance and thestrengthening of supervisory functions at overseas subsidiaries.
Field tours were held in Nihonbashi (Tokyo) and the Kashiwa-no-ha area (Chiba Prefecture), where the Company promotes
neighborhood creation, to deepen the understanding of our Company’s projects among outside officers and to further
activate discussions between inside and outside officers.

(3) Issues identified and actions taken in FY2021 (current year)
Generally, a high evaluation was given to each evaluation item. The improvement initiatives listed above are being implemented basedon the findings of the previous evaluation of Board of Directors’ efficacy and it was confirmed that the Board of Directors’ efficacy wasproperly maintained.
<Issues><Initiative policy>

Sharing of dialogue status withstakeholders and discussions

With regard to the status of dialogue with stakeholders, currently relevant content is additionally explained as appropriate
when explaining each deliberation item. In the future, a separate session will be held to share and discuss all deliberation
items.

Improving operation to further deepen
discussions at the Board of Directors

When each deliberation item is explained, we will share questions and opinions at the discussions on the executive side,mainly at the Executive Management Committee, from internal officers to external officers, in order to deepen discussions
at the Board of Directors.

Initiatives Aimed at Holding Meaningful Discussions
To aid managing directors and corporate auditors in ably fulfilling their roles, the Company conducts orientations upon appointing new
officers, performs regular executive training, and otherwise provides information necessary for the performance of duties.
In addition to creating opportunities for exchanges of opinions between outside officers and top management, assigning staff tosupport the Board of Directors and the Board of Corporate Auditors, and distributing materials and providing briefings to outside
directors in advance of Board of Directors meetings, the Company bears expenses required by managing directors and corporate
auditors in carrying out their roles.
Practical example
Outside Officer Meetings(conducted five times in FY2021)

91

Integrated Report 2022

We hold Outside Officer Meetings as appropriate to enable exchanges of opinions with corporate auditors, outside directors, and internal
directors, including the President and Chief Executive Officer. These meetings address our business strategy and specific businesses.

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Value Creation Efforts and Base Building|

Our Base for Value Creation

Managing Directors’ Expertise, Experience, and Attendance at Board of Directors Meetings

Breakdown of Managing Directors’ Compensation

To ensure balance and diversity for the Board of Directors as a whole and to enable multifaceted and useful discussions in meetings,
we take the capabilities and experience of managing directors into account in the selection of human resources, and maintain an
appropriate scale for the Board of Directors that allows it to function effectively and efficiently.

(FY2021)

Non-performance-based (Approx. 50%–55%)

Areas of expertise and experience
Corporate
management

Treasury,
accounting
and financeCompliance andrisk management

Technology
and innovation

GlobalESG andsustainability

Urban
development(real estatedevelopment, etc.)

Chairman of the Board

12 / 12Masanobu Komoda

12 / 12

Kiyotaka Fujibayashi

President andChief Executive Officer
Managing Director andExecutive Vice President

Yasuo Onozawa

Managing Director andExecutive Vice President

12 / 12Internal corporate auditors

Takashi Yamamoto

Managing Director

12 / 12

Outside directors and outside corporate auditors

Takashi Ueda

Managing Director

12 / 12

Takayuki MikiManaging Director

Newly
appointed

Wataru Hamamoto

Managing Director

12 / 12Masafumi Nogimori

Outside Director

12 / 12Tsunehiro Nakayama

Outside Director

12 / 12

Shinichiro Ito

Outside Director

11 / 12(of these, outside directors)

Eriko Kawai

Outside Director

10 / 12(of these, outside corporate auditors)

Basiccompensation

Title

12 / 12•••(5) Important matters related to personnel
The appointment and dismissal of corporate
officers and executive corporate officers
The appointment and dismissal of key
employees
Compensation and bonuses for corporate
officers, etc.
(6) Important matters related to finance and assets(7) Other matters that are especially important inregard to managing the Company or executing
duties•••Breakdown of Compensation
Managing directors’ compensation consists of basic compensation, bonuses paid as short-term incentives that comprehensively take
into consideration such things as business results achieved in each fiscal year which must be approved by resolution at the Ordinary
General Shareholders’ Meeting, and restricted stock compensation paid as medium- to long-term incentives for the purpose ofsustainably increasing the corporate value of the Group and further sharing shareholder value with shareholders. Compensation paid to
outside directors and corporate auditors is solely basic compensation.
The amount of compensation for managing directors is determined by the Board of Directors following consultation with theCompensation Advisory Committee. Corporate auditors’ compensation is determined based on discussions among corporate auditors.

Integrated Report 2022

Amount of compensation by type (Millions of yen)
Basic compensation

Bonus

Restricted stockcompensation

Managing directors

1,342
(76)

714
(76)

464
(—)

163
(—)

13
(5)

Corporate auditors

152
(46)

152
(46)

—

—

5
(3)

Total

1,495
(122)

867
(122)

464
(—)

163
(—)

18
(8)

Number of applicable
executives

Note: The number of persons and the amount of compensation above include one managing director who retired at the conclusion of the 109th Ordinary General Shareholders’Meeting held on June 29, 2021.

Executive Compensation

93

Restricted stock compensation

Total compensation(Millions of Yen)

Title

The following matters are resolved by or reported to the Mitsui Fudosan Board of Directors as stipulated by laws and regulations, theCompany’s Articles of Incorporation, and company rules such as those regarding the Board of Directors. Agenda items to bedeliberated by the Board of Directors are, in principle, deliberated in advance by the Executive Management Committee, which iscomposed of executive corporate officers. Full-time corporate auditors also attend Executive Management Committee meetings tostay informed on important decision-making processes and the status of business execution, and provide opinions as necessary.

••

Medium- to long-term incentives

Bonus

Compensation by Title, Amount of Compensation by Type, and Number of Applicable Executives (FY2021)

Board of Directors Decisions and Reports

•
•
•
•
•

Short-term incentives

Internal directors(of these, outside directors and corporate auditors)(4) Important matters related to compliance, etc.
Formulating a compliance promotion plan for
the fiscal year
Reporting on the results of compliancepromotion activities implemented during the
fiscal year
Formulating an audit plan for the fiscal year
Reporting on audit activities implemented
during the fiscal year
Evaluating internal controls concerning financial
reporting during the fiscal year and formulating
audit-related policy (J-SOX activities)

shareholders based on our returns
policies•Progress of our Group’s long-term
management policies•Economic climate•Business environment

Executive Compensation Structure

Hiromichi Iwasa(1) Matters related to shareholders’ meetings(2) Matters related to managing directors
Preliminary selection of director
candidates
The appointment and dismissal of
representative managing directors
The appointment and dismissal of
executive directors
Compensation and bonuses for
managing directors
Other important matters(3) Matters related to the Company’s structure•Performance for the current term
•Status of ESG-related initiatives•Redistribution of profits among

Performance-based (Approx. 45%–50%)

Bonuses (Short-Term Incentives)
Basic Compensation

Attendanceat Boardof Directors
Meetings

Comprehensive consideration is given to the following factors:

Restricted Stock Compensation(Medium- to Long-Term Incentives)

Performance-Based Compensation Indicators

Compensation of Executives Exceeding ¥100 million (FY2021)
Amount of compensation by type (Millions of yen)
Name

Hiromichi Iwasa
Masanobu Komoda
Yoshikazu Kitahara
Kiyotaka Fujibayashi
Yasuo Onozawa
Takashi Yamamoto
Takashi Ueda
Wataru Hamamoto

Title

Company

Chairman of the Board

Mitsui Fudosan Co., Ltd.

President and Chief Executive Officer

Mitsui Fudosan Co., Ltd.

Managing Director and Executive Vice President Mitsui Fudosan Co., Ltd.
Managing Director

Mitsui Fudosan Co., Ltd.

Managing Director

Mitsui Fudosan Co., Ltd.

Managing Director

Mitsui Fudosan Co., Ltd.

Managing Director

Mitsui Fudosan Residential Co., Ltd.

Managing Director

Mitsui Fudosan Co., Ltd.

Managing Director

Mitsui Fudosan Co., Ltd.

Basic
compensation

Bonus

120
120
75
73
68
52
10
63
63

93
93
52
52
52
39
—
39
39

Total
Restricted stock compensation(Millions of yen)compensation

30
30
19
19
19
14
—
14
14

244
244
147
145
140
118
117
117

Note: Executive officer data are for fiscal 2021.

Restricted Stock Compensation System
The Group has introduced a restricted stock compensation
system in lieu of stock options as compensation for
managing directors, excluding outside directors with theaim of providing an incentive to achieve continuous
improvement of the Company’s corporate value and toencourage a further sharing of value with shareholders(resolved at the 108th Ordinary General Shareholders’Meeting held on June 26, 2020). Meanwhile, stockacquisition rights which have already been granted as
stock options but have not yet been exercised will continue
to exist. However, no new stock options will be granted.

Purpose of introduction:
Providing incentives for eligible directors* to achieve continuous improvement of theCompany’s corporate value, and to encourage a further sharing of value with theshareholders.

Maximum amount:
Up to ¥600 million/200,000 shares per year

Restriction period:
For the duration of the period until the point immediately after the eligible director loses
his or her position as the Company’s managing director.

Other:In addition to the eligible directors, the Company also has introduced the system to managing
officers and Group officers who do not concurrently serve as managing directors of the Company.
* Eligible directors: Directors excluding outside directors

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Value Creation Efforts and Base Building|

Our Base for Value Creation

Reasons for the appointment

Fiscal 2021 attendance at Boardof Directors Meetings and Boardof Corporate Auditors Meetings

Takashi Ueda
Managing Director

Since joining the Company, Takashi Ueda has amassed abundant experience in various fields.
Presently, as the Company’s managing director, he is responsible for the building business, newbusiness development, and large-scale mixed-use development projects, among others. In thiscapacity, he decides upon important matters of management and supervises business execution,
among other duties, playing an appropriate role in contributing to the enhancement of the Company’s corporate value. The Company re-selected Mr. Ueda as a managing director as he is expected
to make further contributions going forward.

Board of Directors
Meetings: 12/12

Takayuki MikiManaging
Director *1

Since joining the Company, Takayuki Miki has amassed abundant experience in various fields.
After assuming the position of managing officer, he has contributed to the enhancement of theCompany’s corporate value through the fulfillment of his duties as managing officer such as byserving as manager of the logistics properties development. In this capacity, he is playing anappropriate role including deciding upon important matters of management and supervisingbusiness execution, among other duties. Based on the aforementioned, the Company re-selected
Mr. Miki as a managing director as he is expected to make further contributions going forward.

Wataru Hamamoto
Managing Director

Since joining the Company, Wataru Hamamoto has amassed abundant experience in various
fields. Presently, as the Company’s managing director, he is responsible for accounting, corporate
planning, and promotion of digital transformation (DX), among others. In this capacity, he decides
upon important matters of management and supervises business execution, among other duties,
playing an appropriate role in contributing to the enhancement of the Company’s corporate value.
The Company re-selected Mr. Hamamoto as a managing director as he is expected to make further
contributions going forward.

Board of Directors
Meetings: 12/12

Masafumi Nogimori
Outside Director

As the Company’s outside director, Masafumi Nogimori has played an appropriate role aimed at
reinforcing the supervision functions of the Board of Directors and ensuring transparency. He is
expected to make further contributions going forward, and because there is no possibility ofconflicts of interest with general shareholders, he has been appointed as an outside director andindependent officer.

Board of Directors
Meetings: 12/12

Tsunehiro Nakayama
Outside Director

As the Company’s outside director, Tsunehiro Nakayama has played an appropriate role aimed
at reinforcing the supervision functions of the Board of Directors and ensuring transparency. He
is expected to make further contributions going forward, and because there is no possibility ofconflicts of interest with general shareholders, he has been appointed as an outside director andindependent officer.

Board of Directors
Meetings: 12/12

Shinichiro Ito
Outside Director

As the Company’s outside director, Shinichiro Ito has played an appropriate role aimed at reinforcing
the supervision functions of the Board of Directors and ensuring transparency. He is expected tomake further contributions going forward, and because there is no possibility of conflicts of interest
with general shareholders, he has been appointed as an outside director and independent officer.

Board of Directors
Meetings: 11/12

Eriko Kawai
Outside Director

As the Company’s outside director, Eriko Kawai has played an appropriate role aimed at reinforcing
the supervision functions of the Board of Directors and ensuring transparency. She is expected
to make further contributions going forward, and because there is no possibility of conflicts ofinterest with general shareholders, she has been appointed as an outside director and independent
officer.

Board of Directors
Meetings: 10/12 *2

Masatoshi Sato
Senior Corporate
AuditorSince joining the Company, Masatoshi Sato has amassed abundant experience in various fields.
As a director of the Company, he has overseen wide-ranging work including accounting, generalaffairs, and IT innovation, and possesses abundant experience gained through these duties. Basedon this, the Company has determined that he is able to appropriately audit the execution of duties
by managing directors, and has appointed him as a corporate auditor.

Board of Directors
Meetings: 12/12
Board of Corporate
Auditors Meetings:
12/12

Hiroyuki Ishigami
Senior Corporate
AuditorSince joining the Company, Hiroyuki Ishigami has amassed abundant experience in various fields.
As a director of the Company, he has overseen wide-ranging work involving the retail facilities,
hotels/resorts, and logistics businesses, and possesses abundant experience gained throughthese duties. Based on this, the Company has determined that he is able to appropriately audit
the execution of duties by managing directors, and has appointed him as a corporate auditor.

Board of Directors
Meetings: 12/12
Board of Corporate
Auditors Meetings:
12/12

Yoshitaka Kato
Outside Auditor

Yoshitaka Kato is currently fulfilling appropriate roles as an outside auditor of the Company towards
sufficiently realizing his function of monitoring the execution of duties by the managing directors
through the use of his professional knowledge and broad experience concerning accounting andtaxes and expressing his opinions on the agendas as necessary. Going forward, he is expected
to make further contributions, and because there is no possibility of conflicts of interest with generalshareholders, he has been appointed an outside auditor and independent officer.

Board of Directors
Meetings: 12/12
Board of Corporate
Auditors Meetings:
12/12

Yasushi Manago
Outside Auditor

Yasushi Manago is currently fulfilling appropriate roles as an outside auditor, sufficiently realizing
his function of monitoring the execution of duties by the managing directors through the use of
his professional knowledge and broad experience concerning finance and legislation and expressing his opinions on the agendas as necessary. Going forward, he is expected to make further
contributions, and because there is no possibility of conflicts of interest with general shareholders,
he has been appointed an outside auditor and independent officer.

Board of Directors
Meetings: 11/12
Board of Corporate
Auditors Meetings:
11/12

Yukimi Ozeki
Outside Auditor

Yukimi Ozeki is currently fulfilling appropriate roles as an outside auditor, sufficiently realizing her
function of monitoring the execution of duties by the managing directors through the use of her
professional knowledge and broad experience concerning the Companies Act and expressing
her opinions on the agendas as necessary. Going forward, she is expected to make further
contributions, and because there is no possibility of conflicts of interest with general shareholders,she has been appointed an outside auditor and independent officer.

Board of Directors
Meetings: 11/12
Board of Corporate
Auditors Meetings:
11/12

Independent
officer

Appointment of Managing Directors/Corporate Auditors and Corporate Officers
Appointment of Managing Directors and Corporate Auditors
Based on the Group’s management philosophy and management strategy, the Company performs comprehensive evaluations ofcharacter, capabilities, insights, and other factors to appoint persons considered suitable as managing directors and corporate
auditors.

Introduction of the Corporate Officer System
Mitsui Fudosan has introduced a corporate officer system with the aim of creating a business execution framework that best suits its
operating environment and activities. By promoting the separation and reinforcement of the management and executive functions, arole that was previously undertaken by managing directors, the system enhances management soundness and efficiency.
In addition, seeking to further reinforce the management of the Mitsui Fudosan Group, we have expanded the range of managers
across the Group and introduced a Group corporate officer system, under which executives at Group companies have been given a
status and mission similar to those of the corporate officers.

Reasons for Appointment of Managing Directors and Corporate Auditors
Independent
officer

Hiromichi Iwasa
Chairman of
the Board

Reasons for the appointment

Fiscal 2021 attendance at Boardof Directors Meetings and Boardof Corporate Auditors Meetings

Hiromichi Iwasa served as President and Chief Executive Officer from June 1998 to June 2011,
during which time he gained a wealth of experience and insight related to the Group’s generalbusiness operations as an executive. Since June 2011, he has led the Group’s management,
deciding upon important matters of management and supervising business execution, among
other duties. As a result, he plays an appropriate role in contributing to enhancement of theCompany’s corporate value. The Company re-selected Mr. Iwasa as a managing director as heis expected to make further contributions to enhancement of the Group’s corporate value going
forward.

Board of Directors
Meetings: 12/12

Masanobu Komoda
President
and Chief
Executive Officer

Masanobu Komoda has served as President and Chief Executive Officer since June 2011, during
which time he has gained a wealth of experience and insight related to the Group’s generalbusiness operations as an executive. He leads the Group’s management, deciding upon importantmatters of management and supervising business execution, among other duties. As a result, heplays an appropriate role in contributing to enhancement of the Company’s corporate value. The
Company re-selected Mr. Komoda as a managing director as he is expected to make further
contributions to enhancement of the Group’s corporate value going forward.

Board of Directors
Meetings: 12/12

Kiyotaka Fujibayashi
Managing Directorand Executive Vice
President

Since joining the Company, Kiyotaka Fujibayashi has amassed abundant experience in various
fields. In addition, he served as President and Representative Director, Mitsui Fudosan ResidentialCo., Ltd. from April 2012 to March 2021, gaining a wealth of experience and insight as top
management. Presently, as the Company’s managing director, he is responsible for the Group’s
housing business. In this capacity, he decides upon important matters of management andsupervises business execution, among other duties, playing an appropriate role in contributing to
the enhancement of the Company’s corporate value. The Company re-selected Mr. Fujibayashi
as a managing director as he is expected to make further contributions going forward.

Board of Directors
Meetings: 12/12

Yasuo Onozawa
Managing Directorand Executive
Vice President

Since joining the Company, Yasuo Onozawa has amassed abundant experience in various fields.
Presently, as the Company’s managing director, he is responsible for general administration,
secretarial duties, public relations, human resources and affiliated businesses, etc. In this capacity,
he decides upon important matters of management and supervises business execution, among
other duties, playing an appropriate role in contributing to the enhancement of the Company’s
corporate value. The Company re-selected Mr. Onozawa as a managing director as he is expected
to make further contributions going forward.

Takashi Yamamoto
Managing Director

Since joining the Company, Takashi Yamamoto has amassed abundant experience in various
fields. Presently, as the Company’s managing director, he is responsible for the overseas business.
In this capacity, he decides upon important matters of management and supervises businessexecution, among other duties, playing an appropriate role in contributing to the enhancement of
the Company’s corporate value. The Company re-selected Mr. Yamamoto as a managing director
as he is expected to make further contributions going forward.

Board of Directors
Meetings: 12/12

Board of Directors
Meetings: 12/12*1 Newly appointed as an inside director on June 29, 2022
*2 Appointed on June 29, 2021. 100% attendance rate at Board of Director meetings during period of appointment.

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Value Creation Efforts and Base Building|

Our Base for Value Creation

Management Team
Members of the Board (As of June 29, 2022)

Hiromichi Iwasa
Chairman of the Board

Masanobu Komoda
Shares in Company:
92 thousand shares

Apr. 1967 Joined Company
Jun. 1995 Managing Director, General Manager ofProject Planning Division, Project 1st
Planning Dept., General Manager of Project
Planning Division, Construction Dept.
Apr. 1996 Executive Managing Director, Chief
Operating Officer of Project Planning
Division
Jun. 1997 Senior Executive Managing Director(Representative), Chief Operating Officer ofProject Planning Division
Apr. 1998 Senior Executive Managing Director(Representative), Chief Operating Officer ofAsset Management DivisionJun. 1998 President (Representative)
Apr. 2001 President and Chief Executive Officer(Representative)
Jun. 2011 Chairman of the Board and Chief Executive
Officer (Representative)
Apr. 2019 Chairman of the Board (Representative)(current position)

President andChief Executive Officer

Shares in Company:
62 thousand shares

Apr. 1978 Joined Company
Jun. 2009 Executive Managing Director, Executive
Managing Officer, General Manager of
Investment Dept.
Jul. 2010 Senior Executive Managing Director, Senior
Executive Managing Officer, General
Manager of Investment Dept.
Apr. 2011 Senior Executive Managing Director, Senior
Executive Managing Officer
Jun. 2011 President and Chief Executive Officer(Representative) (current position)

Kiyotaka Fujibayashi
Managing Director andExecutive Vice President

Shares in Company:
20 thousand shares

Apr. 1981 Joined Company
Apr. 2012 President and Representative Director,
Mitsui Fudosan Residential Co., Ltd.
Jun. 2013 Managing Director, Executive Managing
Officer
Apr. 2017 Managing Director, Senior Executive
Managing Officer, Chief Operating Officer ofHomes and Lifestyle Promotion Division
Apr. 2020 Managing Director, Executive Vice
President, Chief Operating Officer of Homesand Lifestyle Promotion Division
Apr. 2021 Chairman of the Board, Mitsui Fudosan
Residential Co., Ltd. (current position)
Apr. 2022 Managing Director (Representative),
Executive Vice President, Chief Operating
Officer of Homes and Lifestyle Promotion
Division (current position)

Takayuki MikiManaging Director

Wataru Hamamoto
Shares in Company:
19 thousand shares

Apr. 1984 Joined Company
Jun. 2022 Managing Director, Senior Executive
Managing Officer, Chief Operating Officer of
Logistics Properties Business Division(current position)

Managing Director

Shares in Company:
25 thousand shares

Apr. 1984 Joined Company
Jun. 2019 Managing Director, Executive Managing
Officer
Apr. 2020 Managing Director, Executive Managing
Officer, Chief Operating Officer of DX
Division
Apr. 2021 Managing Director, Senior Executive
Managing Officer, Chief Operating Officer of
DX Division
Apr. 2022 Managing Director, Senior Executive
Managing Officer, Chief Operating Officer of
Sustainability Promotion Department(current position)

Masafumi NogimoriManaging Director(Independent Outside Director) Shares in Company:
2 thousand shares

Apr. 1970 Joined Fujisawa Pharmaceutical Co., Ltd.
Jun. 1997 Director, Fujisawa Pharmaceutical Co., Ltd.
Jun. 2000 Corporate Executive, Fujisawa
Pharmaceutical Co., Ltd.
Jun. 2001 Managing Corporate Executive, Fujisawa
Pharmaceutical Co., Ltd.
Jun. 2003 Director and Managing Corporate
Executive, Fujisawa Pharmaceutical Co.,Ltd.
Apr. 2005 Representative Director and Executive Vice
President, Astellas Pharma Inc.
Jun. 2006 Representative Director, President andChief Executive Officer, Astellas Pharma Inc.
Jun. 2011 Representative Director and Chairman,
Astellas Pharma Inc.
Jun. 2017 Managing Director (current position)

Significant positions currently held, etc.
Outside Director, Daicel Corporation
External Director, Linical Co., Ltd.

Significant positions currently held, etc.
Outside Director, TV TOKYO Holdings Corporation

Yasuo Onozawa
Managing Director andExecutive Vice President

Takashi Yamamoto
Shares in Company:
31 thousand shares

Apr. 1981 Joined Company
Jun. 2016 Managing Director, Executive Managing
Officer
Apr. 2017 Managing Director, Senior Executive
Managing Officer
Apr. 2020 Managing Director, Executive Vice President
Apr. 2022 Managing Director (Representative),
Executive Vice President (current position)

Managing Director

Shares in Company:
21 thousand sharesMar. 1990 Joined Company
Jun. 2017 Managing Director, Executive Managing
Officer, Chief Operating Officer ofInternational Division
Apr. 2019 Managing Director, Senior Executive
Managing Officer, Chief Operating Officer ofInternational Division (current position)

Significant positions currently held, etc.
Outside Director, Imperial Hotel, Ltd.

Takashi Ueda
Managing Director

Tsunehiro Nakayama
Shares in Company:
22 thousand shares

Apr. 1983 Joined Company
Jun. 2020 Managing Director, Executive Managing
Officer, Chief Operating Officer of Office
Building Division
Apr. 2021 Managing Director, Senior Executive
Managing Officer (current position)

Managing Director(Independent Outside Director) Shares in Company:
2 thousand shares

Apr. 1971 Joined the Industrial Bank of Japan, Ltd.
Apr. 2004 Representative Director, Vice President ofMizuho Corporate Bank, Ltd.
Apr. 2007 Advisor, Merrill Lynch Japan Securities Co.,Ltd.
May 2007 Representative Director, Chairman, Merrill
Lynch Japan Securities Co., Ltd.
Nov. 2008 Representative Director, Chairman, andPresident, Merrill Lynch Japan Securities
Co., Ltd.
Mar. 2009 Representative Director, Chairman, andPresident, Merrill Lynch Japan Securities
Co., Ltd., and Representative in Japan,
Bank of America Group
Jul. 2010 Representative Director, Chairman, Merrill
Lynch Japan Securities Co., Ltd.
Jun. 2017 Director, Merrill Lynch Japan Securities Co.,
Ltd.
Jul. 2017 Special Advisor, Merrill Lynch Japan
Securities Co., Ltd.
Jun. 2019 Managing Director (current position)

Significant positions currently held, etc.
Outside Director, Tokai Tokyo Financial Holdings, Inc.
Note: Figures for shares held by managing directors and corporate auditors are as of March 31, 2022.

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Integrated Report 2022

Shinichiro ItoManaging Director(Independent Outside Director) Shares in Company:
2 thousand shares

Apr. 1974 Joined ALL NIPPON AIRWAYS CO., LTD.
Jun. 2003 Member of the Board of Directors,
Corporate Executive Officer, ALL NIPPONAIRWAYS CO., LTD.
Apr. 2004 Executive Vice President, Corporate
Executive Officer, ALL NIPPON AIRWAYS
CO., LTD.
Apr. 2006 Executive Vice President, Corporate
Executive Officer, ALL NIPPON AIRWAYS
CO., LTD.
Apr. 2007 Senior Executive Vice President,
Representative Director, ALL NIPPONAIRWAYS CO., LTD.
Apr. 2009 President & Chief Executive Officer,
Representative Director, ALL NIPPONAIRWAYS CO., LTD.
Apr. 2013 President & Chief Executive Officer,
Representative Director, ANA HOLDINGS
INC., and Chairman of the Board, ALL
NIPPON AIRWAYS CO., LTD.
Apr. 2015 Chairman of the Board, Representative
Director, ANA HOLDINGS INC.
Apr. 2017 Chairman of the Board, ANA HOLDINGS
INC.
Jun. 2019 Managing Director (current position)
Apr. 2022 Special Senior Advisor, ANA HOLDINGS
INC. (current position)

Eriko Kawai

Managing Director(Independent Outside Director) Shares in Company:

0 sharesOct. 1981 Joined Nomura Research Institute, Ltd.
Sep. 1985 Joined McKinsey & Company’s Paris
BranchOct. 1986 Joined Mercury Asset Management/SG
Warburg plc
Nov. 1995 Director and Chief Investment Officer (CIO)
of Yamaichi Regent ABC Polska
Jul. 1998 Senior Pension Funds Administrator of
Bank for International Settlements (BIS)Oct. 2004 Senior Pension Funds Administrator of
Organization for Economic Cooperation andDevelopment (OECD)
Mar. 2008 Representative of Kawai Global Intelligence
Apr. 2012 Professor of Kyoto University
Apr. 2021 Professor Emeritus of Kyoto University(current position)
Jun. 2021 Managing Director (current position)

Significant positions currently held, etc.
Outside Director, Daiwa Securities Group Inc.
Outside Director, CMIC Holdings Co., Ltd.
Outside Audit & Supervisory Board Member, Yamaha
Motor Co., Ltd.

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Value Creation Efforts and Base Building|

Our Base for Value Creation

Corporate Auditors (As of June 29, 2022)

Corporate Officers (As of April 1, 2022)
Masanobu Komoda

Makoto Tokuda

Nobuhiko Mochimaru

Kiyotaka Fujibayashi

Motoyasu Kato

Mizuho Wakabayashi

Yasuo Onozawa

Kazunori Yamashita

Jiro Ueda

Takashi Yamamoto

Hisashi Osawa

Tetsuya MatsufujiTakashi Ueda

Takashi Furuta

Ken Aoki

Takayuki Miki

Yugo Ono

Mikiko Utsunomiya

Yasuki Kaibori

Tatekazu Nakamura

Hiroshi Murakami

Wataru Hamamoto

Chiharu Fujioka

Hiroyuki Shinozuka

Yoshihiro Hirokawa

Atsumi Kanaya

Hirotaka Uematsu

Akihiko Funaoka

Yutaka Saito

Kyosuke Hosoda

President and Chief Executive Officer
Executive Vice President
Executive Vice President

Senior Executive Managing Officer

Masatoshi Sato
Senior Corporate Auditor

Hiroyuki Ishigami
Shares in Company:
14 thousand shares

Apr. 1990 Joined Company
Jun. 2015 Managing Director, Executive Managing
Officer
Apr. 2019 Managing Director
Jun. 2019 Senior Corporate Auditor (current position)

Senior Corporate Auditor

Yoshitaka Kato
Shares in Company:
6 thousand shares

Apr. 1982 Joined Company
Jun. 2017 Managing Director, Executive Managing
Officer, Chief Operating Officer of Retail
Properties Division
Apr. 2019 Managing Director, Senior Executive
Managing Officer, Chief Operating Officer of
Retail Properties Division
Apr. 2020 Managing Director
Jun. 2020 Senior Corporate Auditor (current position)

Significant positions currently held, etc.
Outside Corporate Auditor, Imperial Hotel, Ltd.

Corporate Auditor(Independent Outside Auditor) Shares in Company:

0 sharesNov. 1974 Joined Tetsuzo Ota & Co.
Sep. 1978 Registered as Certified Public Accountant
Jun. 2006 Executive Director, Ernst & Young
ShinNihon LLC
Aug. 2008 CEO, Ernst & Young ShinNihon LLC
Jun. 2015 Corporate Auditor (current position)

Significant positions currently held, etc.
Outside Corporate Auditor, Sumitomo Chemical Co., Ltd.
Outside Audit & Supervisory Board Member,
SUMITOMO CORPORATION

Senior Executive Managing Officer
Senior Executive Managing Officer
Senior Executive Managing Officer
Senior Executive Managing Officer
Senior Executive Managing Officer
Executive Managing Officer

Executive Managing Officer
Executive Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer

Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer

Shingo Suzuki

Executive Managing Officer

Yutaka Kawamura
Executive Managing Officer

Retsu Togashi

Executive Managing Officer

Hiroki Saito

Executive Managing Officer

Group Officers (As of April 1, 2022)
Yoshikazu KitaharaGroup Senior Officer [TOKYO DOME CORPORATION]

Hideki Moriya

Group Senior Officer [Mitsui Fudosan Residential Co., Ltd.]

Yasushi Endo

Group Senior Officer [Mitsui Fudosan Realty Co., Ltd.]

Yasushi Manago

Corporate Auditor(Independent Outside Auditor) Shares in Company:

0 shares

Apr. 1978 Joined Ministry of FinanceJul. 2009 Deputy Vice Minister, Ministry of FinanceJul. 2010 Director-General of the Budget Bureau,
Ministry of FinanceAug. 2012 Administrative Vice Minister, Ministry of
FinanceFeb. 2014 Registered as Lawyer, Daiichi Tokyo Bar
Association
Feb. 2014 Of Counsel, Nishimura & Asahi LPC (current
position)
Jun. 2015 Corporate Auditor (current position)

Significant positions currently held, etc.
Outside Director, Nippon Television Holdings, Inc.

Toru Kamura

Yukimi Ozeki

Corporate Auditor(Independent Outside Auditor) Shares in Company:

0 shares

Apr. 1999 Full-time Lecturer, Nagasaki University
Faculty of Economics
Aug. 2000 Research Scholar, University of Michigan
Law School
Apr. 2004 Associate Professor, Komazawa University
Faculty of Law
Apr. 2010 Professor, Seikei University Law School
Sep. 2015 Visiting Scholar, University of California,
Berkeley, School of Law
Jun. 2016 Corporate Auditor (current position)
Apr. 2021 Professor, Chuo Law School, Chuo
University (current position)

Significant positions currently held, etc.
Outside Director, Bourbon Corporation

Group Senior Officer [Mitsui Fudosan Residential Co., Ltd.]

Shuji Tomikawa

Group Officer [Mitsui Fudosan Investment Advisors, Inc.]

Yosuke Seko

Group Officer [Mitsui Fudosan Residential Service Co., Ltd.]

Akira Ikeda

Group Officer [Mitsui Home Co., Ltd.]

Osamu Obayashi

Group Officer [Mitsui Fudosan Retail Management Co., Ltd.]

Takao YamadaGroup Officer [Mitsui Fudosan Residential Co., Ltd.]

Mitsuhiro Kodama

Group Officer [Mitsui Fudosan Residential Co., Ltd.]

Takao Sakiyama

Group Officer [Mitsui Fudosan Residential Co., Ltd.]

Note: Figures for shares held by directors and corporate auditors are as of March 31, 2022.

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Value Creation Efforts and Base Building|

Our Base for Value Creation

Independence of Outside Directors and Outside Corporate Auditors
Mitsui Fudosan appoints its outside directors with the
expectation that they will contribute their extensive experienceand broad knowledge to the Company’s management, andthat they will play an appropriate role in strengthening the audit
function of the Board of Directors and ensuring transparency.
The Company also appoints its outside auditors with the
expectation that they will bring an objective stance to auditing
the directors in the performance of their duties, based on theirexpert knowledge and extensive experience.
Note that, in line with Tokyo Stock Exchange requirements
for judging the independence of independent officers, theCompany uses the following standards for judging said

independence: whether there is a risk of conflict of interest withany of the Company’s general shareholders; whether any
special interests exist with the Company; and whether inworking to enhance the soundness and transparency of theCompany’s management, the individual is capable of making
objective, fair and impartial judgments.
See pages 95 and p. 96 for information on reasons forappointment of outside directors and outside corporate
auditors.
See the Corporate Governance Report for details.
https://www.mitsuifudosan.co.jp/english/corporate/governance/download/
governance_report.pdf

Strategic Shareholdings
Policy Regarding the Reduction of Strategic Shareholdings
Mitsui Fudosan continuously reviews the status of its strategic
shareholdings. Upon confirming the significance of shareholdings
based on the quantitative rationality of holdings and relationships withbusiness partners, we have decided to reduce our shareholdings.
Meanwhile, in overall consideration for business strategy andrelationships with business partners, to improve the Group’s
corporate value, Mitsui Fudosan holds shares considered effective
for management strategies as shares for purposes other than net
investments (strategic shareholdings) from a medium- to long-term
perspective.

Sales Results Related to Strategic Shareholdings
Since establishing this reduction policy in December 2018, theCompany has sold 18 stocks totaling 13,560,000 shares,
amounting to ¥118.7 billion.
[Sales results] (Mitsui Fudosan Co., Ltd. Non-consolidated)• FY2019: ¥20.3 billion (3,570,000 shares, 13 stocks)• FY2020: ¥45.9 billion (5,060,000 shares, 3 stocks)• FY2021: ¥50.7 billion (3,650,000 shares, 4 stocks)

When verifying the rationality of shareholdings, we verify whether or
not the benefit, risk, etc., associated with the shareholdings arecommensurate with the capital cost. Furthermore, in addition toconfirming the significance of shareholdings from the perspectives oftransaction performance, stable funding, and creation of business
opportunities, we also verify whether or not the holdings contribute toimproving the medium- to long-term corporate value of the Group.
At a meeting held on May 13, 2022, the Board of Directors verified
appropriateness with regard to the significance of strategic
shareholdings based on the quantitative rationality of holding andrelationships with business partners for each stock brand. As aresult, for stocks for which the rationality of holding or significance ofholding has decreased, we will examine selling by consideringfactors such as impact on the stock market.

101 Integrated Report 2022

Under the Executive Management Committee, which supervises overall risk management for Mitsui Fudosan and the Mitsui FudosanGroup, the Strategy Planning Special Committee and the Risk Management Special Committee manage business risk*1 andadministrative risk,*2 respectively.
The Risk Management Special Committee meets in principle once a month to identify and delineate risk issues and evaluate andpropose preventive and response measures. Where required, the committee shares information and/or communicates in other ways
with the Mitsui Fudosan Group.

Risk Management System
Board of Directors

President and CEO

Executive Management CommitteeStandard for Exercising Voting Rights
In exercising voting rights, Mitsui Fudosan makes comprehensive
decisions based on viewpoints including whether it will lead to
improved shareholder returns or enhanced corporate value of thecompany invested in over the medium to long term.
In addition, regarding important matters such as those indicatedbelow, Mitsui Fudosan conducts individual examinations basedon internal standards and appropriately determines the approval/
disapproval of each matter.
(Appropriation of surplus, appointment/dismissal of managing
directors and corporate auditors, director compensation andretirement benefits, changes to the Articles of Incorporation, etc.)

Strategic Shareholdings (As of the end of FY2021)(1) Stock holdings
Number of stocks owned: 128(of which, 57 are shares of listed companies)
Amount recorded on balance sheet: ¥741.5 billion(of which, ¥730.1 billion is for shares of listed companies)(2) Main stock: Oriental Land Co., Ltd.

Verification by the Board of Directors

Risk Management

Presence of strategic
shareholding by theother company

None

Amount recorded onbalance sheet¥559.4 billion

Background andpurpose of holding:

The Company was involved in the establishmentof Oriental Land Co., Ltd. in 1960 and has owned
its shares ever since. Mitsui Garden Hotel PRANATokyo Bay, located in Urayasu City, Chiba andoperated and managed by the Group, is a partner
hotel of Tokyo Disney Resort, and the Company is
an official sponsor of Tokyo Disneyland and Tokyo
DisneySea, which is operated by Oriental Land
Co., Ltd. Therefore, the Company believes thisholding provides utility in terms of facilitating thepromotion of the Group’s business activities andcreating business opportunities.

Sales results:(Mitsui Fudosan Co., Ltd.
Non-consolidated)

FY2019: 960,000 shares (¥12.9 billion)
FY2020: 3,000,000 shares (¥45.6 billion)
FY2021: 3,000,000 shares (¥48.4 billion)

Strategy Planning
Special Committee(Business risk management)*1

Risk Management
Special Committee(Administrative risk management)*2

Major Risks*3
Mitsui Fudosan Group Business Risk

(1) Risk of changes in the economic environment(2) Risk associated with market interest rates(3) Fund procurement risk
(4) Risk from competition in the real estate industry(5) Real estate development risk
(6) Risk associated with rental income(7) Risk associated with overseas business(8) Risk associated with external partners(9) Risk of changes in asset values(10) Risk of changes in operating cost(11) Risk associated with climate change(12) Risk of natural disasters, man-made disasters, etc.
(13) Environmental risk
(14) Risk associated with the spread of infectious diseases(15) Geopolitical risk

Mitsui Fudosan Group Administrative Risk

(1) Risk associated with compliance with laws and regulations(2) Risk associated with changes to laws, regulations,and government policy(3) Risk of legal action or conflict(4) Risk of conflicts of interest(5) Risk associated with internal controls and accounting(6) Risk concerning cyber security(7) Risk associated with securing diverse human resources*1 Business risk: Business risk is primarily risk associated with advancing business and earning profits, including development risk, leasing risk, and market risk.
*2 Administrative risk: Administrative risk is operational risk associated with administrative duties, including disaster risk, system risk, clerical risk, and compliance risk.
*3 See our annual securities report for details. https://www.mitsuifudosan.co.jp/corporate/ir/library/fs/pdf/YUHO_2203.pdf (Only available in Japanese)

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Our Base for Value Creation

CompliancePreventing Improper Conduct

Basic Policy
Based on the Mitsui Fudosan Group Compliance Policies, theMitsui Fudosan Group has positioned compliance as a key
issue in Group management and works to comply with laws,
regulations, and social norms, and implement fair and highly
transparent corporate activities in accordance with corporate
ethics.

Compliance Structure
Mitsui Fudosan has made the officer in charge of generaladministration the person responsible overall for compliance.
In this role, the officer receives reports from the ComplianceManagement Department and others, and particularly importantmatters are reported to or submitted for discussion by the Boardof Directors or the Executive Management Committee. Said
officer is also responsible for formulating a compliance-related
action plan each fiscal year, including the enactment, revision,or abolition of Company rules, the implementation of training
regarding laws, regulations, or Company rules, and thesurveying and reporting of the situation regarding compliancewith laws, regulations, or Company rules. Said officer is also
responsible for implementing compliance activities based on
this plan. Group companies are also required to formulate andimplement compliance promotion plans, and this is reported
to and confirmed by the Company at the end of the fiscal year.

Internal Consultation Service
Mitsui Fudosan has established two points of contact providing
consultation for employees of the Company, an internal contact
and an external law firm. These contacts can provide consultation
on issues regarding compliance with laws and regulations, aswell as matters pertaining to the work environment.

Compliance Training
Mitsui Fudosan provides compliance training to new employees
and various directors and management-level employees of theCompany, including newly appointed executive managers andofficers, with the aim of improving compliance awareness. It
also implements e-learning-based training for all directors andmanagement-level employees.

Main Training and Awareness-Raising Initiatives (Mitsui Fudosan)
Initiative

TargetContent/Date held

New employee training

New employees(April) Implemented every month for dispatch andcontract employees

New executive manager training

Newly appointed officers

Study sessions held on preventing bribery, organizedcrime, information security, preventing insider trading, etc.
(March)Officer compliance training

Managing directors, executive
officers, full-time corporate
auditors, etc.

(September)

Overseas compliance training

International Division,
employees assigned tooverseas subsidiaries

Explanation of compliance violation case studies including
cases involving overseas companies, as well as sharing of
the importance of preventing bribery, etc. (December)

Training for local staff atoverseas subsidiaries

Local staff at overseas
subsidiaries

Training held on preventing bribery, protecting personal
information, whistle-blowing systems, etc. (October,
February)

Companywide compliance training(e-learning)

All staff, including
corporate officers(June, November)Internal bulletins

All directors and employees

Mitsui Fudosan Group Compliance Policies sharedthrough internal bulletins and handbooks

Compliance news

All employees

Information provided on topics and subjects that should
be considered in regard to the execution of operations,such as “eliminating organized crime,” and “a warning
regarding ransomware.” (April, July, October, February)

Internal
training

Awarenessraising
activities

103 Integrated Report 2022

In Interactions between the Company and Society and the Economy

In Interactions between the Company and Its Employees

Eliminating Interactions with Organized Crime
Mitsui Fudosan strictly forbids any kind of connection toorganized crime and, as a company, takes a firm stance indealing with such groups. Each division of the Company also
investigates and confirms that a transaction partner is not
involved in organized crime before the transaction begins.
Should the unlikely situation occur that forces the Company
to face unwarranted demands or violent behavior from suchorganizations, it will contact the relevant police department
and take any other action necessary, including legal measures.

Respecting Human Rights
Mitsui Fudosan does not discriminate due to sex, age,birthplace, nationality, race, ethnicity, creed, religion, disability,
or any other grounds. The Company respects human rights
and strives to maintain fair workplaces.

Ensuring Fair Transactions and Competition
Mitsui Fudosan will comply with all relevant laws, such as the
Antimonopoly Act, and will avoid any conduct that could resultin unfair transactions or unjust competition. We will engage
with business connections sincerely as an equal partner andhandle the procurement of goods and services based on fairstandards.

Managing Company Information Appropriately
Mitsui Fudosan recognizes the importance of managing
documents and information and strives to implement
appropriate management based on its Information Management
Rules, Document Rules, Information System Management
Rules, and the like.
Other(1) Decision-making according to rules(2) Prohibition of sexual and power harassment(3) Separation of public and private

Preventing Corruption(1) Prohibiting Bribery and Handling of Gifts and Entertainment
Mitsui Fudosan has prohibited the illicit provision of benefits
to public officials and other individuals in similar positions.
Also, in dealings with business connections and affiliates,
etc., a rule has been established preventing the giving or
receiving of excessive gifts, entertainment, and the like.
Also, the Company has established a structure and rules
to be followed to prevent bribery and has formulated and is
implementing Regulations for Preventing Bribery with the aimof preventing such conduct before it occurs.
(2) Donations to Politicians and Political Organizations
Mitsui Fudosan does not provide donations for politicalactivities to any parties other than official political parties andpolitical fund-raising organizations. Furthermore, support for
activities by political organizations is conducted appropriately
in accordance with the Political Funds Control Law, laws andregulations connected to the Public Offices Election Law,
and other relevant laws and regulations.
Other(1) Personal information protection(2) Consumer protection(3) Environmental conservation(4) Protection of and respect for intellectual property rights(5) Prohibition of insider trading

Integrated Report 2022

104

Data Section

Financial Highlights(Millions of yen)
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

¥1,338,102¥1,445,644¥1,515,252¥1,529,036¥1,567,969¥1,704,416¥1,751,114¥1,861,195¥1,905,642¥2,007,554¥2,100,870

Operating income

126,038

148,184

172,567

186,074

202,482

232,698

245,902262,147

280,617

203,770

244,978

Ordinary income

102,509

123,066

144,587

163,373

182,521219,607240,341

254,106

258,510

168,865

224,940

Profit attributable to owners of parent

50,12959,451

76,843

100,185

117,722

131,815

155,874

168,661

183,972

129,576

176,986

3,868,411

4,390,074

4,548,822

5,067,187

5,363,477

5,551,751

6,284,723

6,802,731

7,395,359

7,741,972

8,208,012

642,809915,222

961,449

1,031,080

1,167,745

1,334,167

1,524,863

1,630,558

1,907,839

1,930,528

2,051,704

2,304,809

2,503,977

2,526,139

2,788,633

2,968,975

2,967,788

3,318,928

3,500,482

3,753,141

3,796,800

3,914,135

Capital expenditures

111,755

72,355148,255

273,487

207,172

173,745

440,752

390,514379,279

565,266

272,389

Depreciation and amortization

53,23159,02256,03061,242

67,46071,35770,16779,03491,434

98,196

111,500

Interest-bearing debt

1,743,411

2,120,225

2,040,071

1,976,150

2,226,236

2,287,489

2,604,656

2,906,610

3,481,117

3,623,438

3,667,234

Shareholders’ equity and accumulated
other comprehensive income

1,078,182

1,181,174

1,274,355

1,871,922

1,922,305

1,984,635

2,204,882

2,342,512

2,408,679

2,555,885

2,796,474

Cash flows from operating activities

148,161

99,684

189,903

30,34332,154

227,432

30,143

216,709

87,094

187,862

271,469

Cash flows from investing activities-124,353-71,132-44,056-261,640-239,719-201,583-365,464-388,895-532,806-131,035-210,057

Cash flows from financing activities-18,649-7,944-123,713

221,508

201,110

15,071

289,150

231,238

467,751-66,565-139,600

Cash and cash equivalents at year-end

61,726

101,588

127,337

118,960

109,966

148,546

100,708

157,682

179,472

187,723

142,682

57.0

67.6

87.5

103.8

119.1

133.4

157.7

171.3

188.3

134.4

184.4

1,227.5

1,344.9

1,451.1

1,894.3

1,945.4

2,008.4

2,231.1

2,384.8

2,480.3

2,656.4

2,942.1

22.00

22.00

22.00

25.00

30.00

34.00

40.00

44.00

44.00

44.00

55.00

881,424

881,424

881,424

991,424

991,424

991,424

991,424

991,424

979,250

965,281959,474

ROA (%)

3.55

3.66

4.07

4.10

4.14

4.59

4.58

4.44

4.18

2.84

3.31

ROE (%)

4.78

5.27

6.26

6.37

6.20

6.75

7.44

7.42

7.74

5.22

6.61

Debt/Equity (D/E) ratio (Times)

1.62

1.80

1.60

1.06

1.16

1.15

1.18

1.24

1.45

1.42

1.31

Equity ratio (%)

27.9

26.9

28.0

36.9

35.8

35.7

35.1

34.4

32.6

33.0

34.1

Total shareholder return ratio (%)

38.5

32.5

25.1

24.1

25.2

25.5

35.0

35.1

36.9

44.2

46.6

(FY)

Revenue from operations

Management Results

Total assets
Real property for saleTangible and intangible fixed assets
Financial Position

Cash Flows

Earnings per share (EPS)(Net income per share) (¥)
Indicators per Share

Book-value per share (BPS)(Net assets per share) (¥)
Dividends (¥)
Number of outstanding shares(Thousands of shares)

Financial Indicators

Notes:
1. Real property for sale = Real property for sale + real property for sale in progress + land for development + advances paid for purchases
2. Interest-bearing debt = Short-term debt + non-recourse short-term debt + commercial paper + bonds redeemable within one year +non-recourse bonds redeemable within one year
+ corporate bonds + non-recourse bonds + long-term debt + non-recourse long-term debt
3. ROA = (Operating income + non-operating income)/average total assets over the period
4. ROE = Profit attributable to owners of parent/average shareholders’ equity over the period
5. Debt/Equity ratio = Interest-bearing debt/shareholders’ equity

105 Integrated Report 2022

Integrated Report 2022

106

Data Section

Non-Financial Highlights

For details, please refer to ESG Report 2022.
https://www.mitsuifudosan.co.jp/english/esg_csr/report/

Financial Analysis (Fiscal 2021)

(FY)
Item

2018

2019

2020

Thousand t-CO2

5,076

4,383

4,690

4,199

Of these, Scope 1

Thousand t-CO2

90

104

115

140

Of these, Scope 2

Thousand t-CO2

395

413

363

438

Of these, Scope 3

Thousand t-CO2

4,591

3,865

4,211

3,621

Greenhouse gas (GHG) emissions(based on SBT standards)

Environmental
Indicators *1
Energy usage*2

MWh

2021

Operating Conditions and an Overview of Results

1,454,755 1,488,256 1,433,237 3,658,680

Thousand m3/year

5,407

5,726

5,365

11,948Water usage (discharge volume)*2 Thousand m3/year

5,595

5,539

4,711

10,533

Waste emissions volume*2

t/year

47,27147,18838,080114,136

No. of employees (Consolidated)persons

19,081

20,86423,992

24,408Of these, Mitsui Fudosan Co.,
Ltd. (Non-consolidated)persons

1,577

1,631

1,776

1,898

2.5

3.3

4.5

5.7

Water usage (intake volume)*2

Women in management positions
ratio (Non-consolidated)
Women in general positions ratio(Non-consolidated)

Human
Resources
Indicators

Unit

Number of paid leave days taken
Number (percentage) of persons
taking childcare leave, men(Non-consolidated)*3
Number (percentage) of persons
taking childcare leave, women(non-consolidated)
Return rate from childcare leave(Mitsui Fudosan Co., Ltd.)
Health checkup and screening
rate (Mitsui Fudosan Co., Ltd.)
Full-time staff voluntary turnoverrate (Mitsui Fudosan Co., Ltd.)

%

%

days

persons

persons

%

%

%

9.3
14.1
27
(84.4%)

11.0
14.9
25
(61.0%)

12.5
13.8
28
(70.0%)

14.7
15.0
38
(79.2%)

15(100.0%)10(100.0%)13(100.0%)20(95.2%)

100.0

100.0

100.0

100.0

99.5
0.77

99.8
0.53

99.5
0.51

100.0
0.81

*1 Among Mitsui Fudosan and its consolidated subsidiaries, for facilities owned by companies holding buildings or companies with 100 or more employees. Values are subject to change
due to revisions to the aggregation range and methods.
*2 FY2018–FY2020: In principle, the applicable scope is facilities that are obliged to report based on the Act on the Rational Use of Energy. However, some facilities are excluded.
*3 Percentage of persons taking leave intended for childcare

107 Integrated Report 2022

The Japanese economy continued to experience unstable conditions
throughout fiscal 2021. Despite initial signs of a recovery in corporate
earnings and consumer spending due to the lifting of the state of
emergency at the end of September and other factors amid prolonged
restrictions on economic activities owing to the spread of COVID-19, thisinstability largely reflected the impact of highly infectious new virus variantsfrom January 2022. In addition, rising geopolitical risks, including Russia’s
incursion into Ukraine, as well as soaring energy and raw material prices,
exacerbated uncertainties surrounding the future.
In the real estate sector, trends in the office building leasing market weregenerally firm. Despite signs of a modest upswing in vacancy rates owing
in part to the consolidation and downsizing of offices following a review ofworkstyles, this generally firm market was underpinned by such factors as
solid demand for properties in prime city center locations. Meanwhile, theretail facility leasing market exhibited a steady recovery trend. While sales
failed to reach the levels recorded prior to the COVID-19 pandemic owing
to a variety of factors including the intermittent declaration of states of
emergency, this steady recovery was supported by indications of a positive
turnaround in sales for certain facilities, mainly those in the suburbs.
Turning to the logistics facility leasing business, the scale of the market
expanded on the back of such factors as the upswing in new supply. Thislargely reflected the rising demand for logistics facilities associated withgrowth in E-commerce. The hotel operation market continued to confront
challenging conditions. Notwithstanding a partial pickup at lodging-focused
as well as resort hotels owing to a temporary recovery in business use,
successful efforts to capture outbound needs, and other factors, themarket continued to suffer under a wide array of difficult conditions
including prolonged restrictions on activities and delays in a recovery in
inbound needs. In the property sales market, trends were firm as purchasedemand among customers remained high due to growing interest and thediversification of needs concerning living environments, as well as
continued low interest rates. As far as the real estate investment market isconcerned, investors maintained their keen interest. Buoyed by thefavorable financial environment, the J-REIT market continued to expand,with an increase in the amount of real estate holdings.
In this business environment, the Mitsui Fudosan Group implemented araft of thoroughgoing measures aimed at addressing the pandemic at eachof its facilities while working to normalize facility operations. As a newmeasure, the Group formulated the “Mitsui Fudosan 9BOX Infection Control
Standards” for common use across all of its facilities. Under the supervisionof specialists, these standards serve as a countermeasure against droplet,aerosol, and contact infections. In addition, the Group has worked tocreate new value based on its long-term vision, VISION 2025. With thepost-pandemic era foremost in its mind, this includes responding toirreversible changes in workstyles and lifestyles under COVID-19 throughsuch measures as strengthening remote work services at its “WORKSTYLING” multi-site satellite offices for corporate clients, expanding
business in its “&mall” E-commerce mall linked to real stores, anddeveloping housing with workspaces in common areas.
The Mitsui Fudosan Group recognizes that it is its social mission as aproperty developer to contribute to solving a variety of social problems withthe aim of successfully establishing a sustainable society through thecreation of neighborhoods, and has set new action plans and initiatives toreduce environmental impact and enable its workforce to thrive.
First, we formulated the “Group Action Plan for Achieving a DecarbonizedSociety” in order to achieve our goal of net-zero greenhouse gas emissions
for the entire Group by fiscal 2050. Based on this, we promoted thegreening of electricity in the common areas of our facilities in the Tokyo
metropolitan area and launched green power supply services to tenantcompanies. Moreover, we pushed forward environment-focused initiatives.
These include expanding the aforementioned measures to the Chubu andKansai areas. Complementing these endeavors, we applied the Green
Bonds issued to businesses that specialize in activities in the environmental

field to fund the development of an office building in New York. Over andabove the execution of a sustainability-linked loan, in which the borrowinginterest rate fluctuates in line with the achievement of greenhouse gas
emission reduction targets, we also procured funds through sustainablefinance. As a result of these activities, we have been selected for inclusion
by CDP, a non-profit organization engaged in international environmental
surveys and information disclosure, in the CDP 2021 Climate Change A
List of top-ranking companies in the climate change category.
Recognizing that human resources are the force that drives thecontinuous creation of new value, the Mitsui Fudosan Group formulated
the “Diversity and Inclusion Declaration” and a policy for initiatives. Under
its policy for initiatives, the promotion of women’s active participation ispositioned as an important theme. In addition to Mitsui Fudosan setting
such targets as ratios for “women in management position of 10% and
20% by 2025 and 2030,” respectively, as well as “a female recruitment
ratio of 40%,” Group companies have identified similar goals. Positive steps
are also being taken to accelerate initiatives Group-wide by managing thestatus of progress. Among a variety of measures, we have conductedGroup-wide training to change the awareness of the organization andsupervisors. As a result of these endeavors, the Company was selected asa fiscal 2021 Nadeshiko Brand, a joint initiative by Japan’s Ministry of
Economy, Trade, and Industry and the Tokyo Stock Exchange to identify
companies that take outstanding steps to encourage women’s success inthe workplace.
Despite the prolonged impact of COVID-19, operating income, ordinary
income, and profit attributable to owners of parent exceeded consolidated
business results forecasts announced during the fiscal year under review
on the back of these various measures.

Revenue from Operations(Billions of yen)

2,500
2,000

1,861.1

1,905.6

2,007.5

2,100.8

1,751.1

2017

2018

2019

2020

2021

1,500
1,000
500
0

(FY)

Operating Income(Billions of yen)

300

245.9

262.1

280.6

244.9
203.7

200
100
0

2017

2018

2019

2020

2021
(FY)

Profit Attributable to Owners of Parent(Billions of yen)

200
150

155.8

168.6

176.9

183.9
129.5

100
50
0

2017

2018

2019

2020

2021
(FY)

Integrated Report 2022

108

Data Section

Segment Information(Millions of yen)

(FY)

Leasing
In the Leasing segment, overall revenue from operations and operating
income increased ¥45.0 billion and ¥9.2 billion, respectively. In addition to
the upswing in such items as existing office leasing revenue andcontributions for the full fiscal year from various properties including
Bunkyo Garden Gate Tokyo, which was completed during the previous
fiscal year, these increases in revenue from operations and operating
income were due to such factors as the year-on-year recovery in sales atretail facilities amid the ongoing impact of COVID-19.
Meanwhile, the office vacancy rate in the Tokyo metropolitan area was
3.2% on a non-consolidated basis.

Revenue from Operations(Billions of yen)(Billions of yen)

800

623.0

600

Operating Income

668.1¥369,256 ¥389,811
208,841 226,218
Total Leased Floor Space (1,000 m²)
5,788
5,751
Office
Owned
1,894
1,955
Buildings Officeand Retail Buildings
Managed
1,502
1,438
Facilities
Owned
1,758
1,825
RetailFacilities
Managed
634
533
Other
Revenue
52,13744,975
Total Revenue
623,073 668,167
Total Operating Income
120,777 129,983
Retail Facilities

120.7

129.9

Vacancy Rate for Tokyo Metropolitan Area Office Buildings(Non-Consolidated)
5.0
4.0

4.4

40

3.8

3.3

3.2

2.6

3.4

2.0

3.1

0

0

2021

2020

(FY)

(Billions of yen)

500

60
402.9

2.2

1.7

Property Management
Brokerage, AssetManagement, etc.

2020
Revenue
Operating Income
Revenue
Operating Income

Total Revenue
Total Operating Income

2021¥309,099 ¥321,572
21,88831,296
93,829 107,777
18,081
25,909402,929 429,350
39,96957,205

Operating Income(Billions of yen)

57.2

429.3
45

3.2

39.9

300

1.9

30
200

1.0
2021

In the Property Management category, revenue and earnings increased
owing to a variety of factors including successful efforts to reduce costs
on an ongoing basis and increase in occupancy rates in the Repark(car park leasing) business. Revenue and earnings in the Brokerageand Asset Management, etc., category also improved. This was mainly
due to such factors as the year-on-year upswing in brokeragetransactions and unit prices per transaction handled in the Rehouse(brokerage for individuals) business. In overall terms, both revenue fromoperations and operating income in the Management segment
reached record highs climbing ¥26.4 billion and ¥17.2 billion,
respectively.

400

3.0

2020

Management

Revenue from Operations

80

0

(FY)

Office Buildings

Revenue(%)

200(Millions of yen)

2021

160

120

400

2020

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(FY)

(FY)

15

100

(Millions of yen)

(FY)

Property Sales

2020

2021

0

2020

Condominiums
Tokyo
Revenue
Metropolitan
Area
Units

Revenue and earnings in the Property Sales to Individuals (Domestic)
category decreased. This was mainly due to the year-on-year downturn in
the reported number of condominium units in the fiscal year under review.
Revenue and earnings in the Property Sales to Investors and Individuals(Overseas), etc., category increased owing largely to growth in the sale ofproperties to investors including J-REITs. In overall terms, revenue fromoperations in the Property Sales segment decreased ¥70.8 billion. In
contrast, operating income reached a record high climbing ¥20.1 billion.

Other

Subtotal

Revenue
Units
Revenue
Units

Revenue from Operations

Operating Income(Billions of yen)(Billions of yen)

800

714.7

138.3

150

643.8

600

Other

118.2

120

Tokyo
Revenue
Metropolitan
Area
Units

90

Subtotal

400

200

0

2020

30
Property Sales to Investors &Individuals (Overseas)

2021

2020

(FY)
(Units)

(FY)

2017

2018

2019

2020

2021

Condominiums

108
40
148

141
30
171

128
58
186

150
17
167

82
7
89

109 Integrated Report 2022

Units

Units
Operating
IncomeFiscal Year-End Inventories (Property Sales to Individuals [Domestic])

Total

Revenue

Revenue(FY)

Detached Housing

Units

60

0

2021

Revenue

Total Revenue
Total Operating Income

Revenue
Operating
Income

0

2020

2021

(FY)

¥268,854 ¥180,674
3,332
2,539
21,39925,995443
669
290,254 206,669
3,775
3,208

Detached Housing
Property Sales
to Individuals(Domestic)

2021

33,183482
1,927
33
35,110515
325,364
4,290
40,003389,374
78,209714,739
118,213

36,149467
2,335
40
38,485507
245,155
3,715
24,028398,696
114,315
643,851
138,343(FY)(Millions of yen)

(FY)

Other

New Construction Revenue

Overall revenue from operations in the Other segment increased ¥92.6
billion, whereas the operating loss expanded ¥2.4 billion. This largely
reflected the recovery trend in facility operations mainly in the hotel andresort businesses as well as the inclusion of TOKYO DOME’s revenue
and operating loss.

Revenue from Operations(Billions of yen)(Billions of yen)

10

300

359.4

TOKYO DOME Revenue
Other Revenue
Total Revenue
Total Operating Loss

Operating Income

400

Facility Operations Revenue

2020

2021

¥147,222 ¥158,307
32,73646,803—59,38886,85495,000266,812 359,499-27,215 -29,641

0
266.8
-10

200
-20
100

0

-30

2020

2021
(FY)

-40

-27.2

2020

-29.6
2021
(FY)

Integrated Report 2022

110

Data Section

Consolidated Financial Position
Assets
As of March 31, 2022, total assets were ¥8,208.0 billion, an increase of¥466.0 billion from the end of the previous fiscal year.
This was mainly due to an increase of ¥121.1 billion in real property
for sale (including real property for sale in progress, land fordevelopment and advances paid for purchases). There was anincrease of ¥117.3 billion in tangible and intangible fixed assets mainly
due to new investments, as well as an increase of ¥167.9 billion due tofair market valuation of investment securities.
Capital expenditures were ¥272.3 billion and depreciation andamortization was ¥111.5 billion.

Liabilities
Interest-bearing debt (the total of short-term debt, non-recourse
short-term debt, commercial paper, bonds redeemable within one
year, non-recourse bonds redeemable within one year, corporate
bonds, non-recourse bonds, long-term debt, and non-recourse
long-term debt) stood at ¥3,667.2 billion on an overall consolidated
basis as of March 31, 2022, an increase of ¥43.7 billion from the endof the previous fiscal year.

Consolidated Cash Flows
Mitsui Fudosan has established committed lines of credit totaling¥400.0 billion with several financial institutions to ensure access tofunds and adequate liquidity. The Company had not accessed theselines of credit as of the balance sheet date.
The current ratio (current assets/current liabilities) as of March 31,
2022, was 201%, a decrease compared with 245% as of March 31,
2021.

(Billions of yen)

(%)

7,500

6,284.7

6,802.7

7,395.3

7,741.9

8,208.0

As of March 31, 2022, cash and cash equivalents were ¥142.6 billion,a decrease of ¥45.0 billion from the end of the previous fiscal year.

4.6

5.0

Cash Flows from Operating Activities

4.4

3.0

2,500

2.0

271.4

240

216.7

Operating activities provided net cash of ¥271.4 billion. Cash provided
included income before income taxes of ¥262.4 billion anddepreciation and amortization of ¥111.5 billion. Decreases included¥90.0 billion in income taxes paid and refunded.

187.8

180
87.0

60

30.1

0

2017

2018

2019

2020

2021
(FY)

Cash Flows from Investing Activities(Billions of yen)200
0-131.0-200

Cash Flows from Investing Activities
Investing activities used net cash of ¥210.0 billion. Cash purchases
included ¥241.5 billion in tangible and intangible fixed assets and ¥64.1
billion in investment securities. Cash provided included proceeds fromthe sale of tangible and intangible fixed assets of ¥57.1 billion andproceeds from the sale of investment securities of ¥72.6 billion.

-400-365.4-388.8

2017

2018

-600

-210.0-532.8
2019

2020

2021
(FY)

Free Cash Flows(Billions of yen)

200

56.8

61.4

2020

2021

0

4.2

4.0

5,000

(Billions of yen)120

Total net assets as of March 31, 2022, were ¥2,913.7 billion, an
increase of ¥257.7 billion compared with the end of the previous fiscal
year. This increase was mainly attributable to upswings of ¥130.7
billion in retained earnings and ¥76.9 billion in net unrealized holding
gains on securities, as well as a positive turnaround of ¥44.9 billion inforeign currency translation adjustment.
The equity ratio as of March 31, 2022, rose to 34.1% from 33.0% asof the end of the previous fiscal year, while the debt/equity ratio
decreased to 1.31 times from 1.42 times. Net assets per share
increased to ¥2,942.11 from ¥2,656.42 as of the previous fiscal
year-end.

ROA

Cash Flows from Operating Activities
300

Net Assets

Total Assets
10,000Consolidated Cash Flows

-200

3.3

Cash Flows from Financing Activities

2.8

-400

-172.1-335.3-445.7

0

2017

2018

2019

2020

2021

Financing activities used net cash of ¥139.6 billion, primarily for thepayment of dividends and repayment of debt.

0

2017

2018

2019

2020

(FY)

8.0

7.4

7.4

(Billions of yen)

7.7

6.6

6.0

4,000
3,000

5.2

4.0

2,000

2.0

1,000

0

2017

2018

2019

2020

2021

0

3,481.1
2,604.6

2017

3,623.4

2018

Net Assets and Equity Ratio(Times)(Billions of yen)

2.0

4,000
1.45
1.18

1.42

1.31

2019

2020

2021

Net assets (left axis)

35.1

3,000
2,287.734.4
2,420.8

Equity ratio (right axis)

32.6

33.0

2,486.5

2,655.9

(%)

34.1

40
30

2,000

20

0.5

1,000

10

2017

2018

2019

2020

2021
(FY)

111 Integrated Report 2022

(FY)

(Millions of yen)

1.0

0

2019

Rental Properties

3,667.2(FY)

Debt/Equity Ratio

1.24

2018

2,906.6

(FY)

1.5

2017

Note: Free cash flow = Cash flow from operating activities + cash flow from investing activities(FY)

Interest-Bearing Debt

ROE
(%)

2021

-600

0

2017

2018

2019

2020

2021
(FY)

0

Mitsui Fudosan and some of its consolidated subsidiaries have rental
properties including office buildings and retail facilities in the Tokyo
metropolitan area and other areas. In fiscal 2020, profit on suchproperties amounted to ¥118,075 million (with leasing revenue recorded
in revenue from operations and leasing expenses recorded in cost ofrevenue from operations). An impairment loss of ¥29,795 million and again on sale of property and equipment of ¥20,668 million were recorded(with impairment loss recorded as an extraordinary loss and the gain onsale of property and equipment recorded as extraordinary income).
In fiscal 2021, profit on such properties amounted to ¥127,249 million(with leasing revenue recorded in revenue from operations and leasing
expenses recorded in cost of revenue from operations). An impairment
loss of ¥8,048 million and a gain on sale of property and equipment of¥6,682 million were recorded (with impairment loss recorded as an
extraordinary loss and the gain on sale of property and equipment
recorded as extraordinary income).
The carrying amount recorded on the consolidated balance sheets,the change during the fiscal year, and the market value of theseproperties are as shown on the right.

(FY)
Rental Properties Carrying Amount
Recorded on the Consolidated
Balance Sheets
Balance as of the Beginning of the
PeriodIncrease (Decrease) during the Period
Balance as of the End of the PeriodMarket Value at the End of the Period
Difference

2020

2021

¥3,171,133¥3,029,628-141,505
3,029,628
5,856,124
2,826,496

76,9203,106,548
6,136,879
3,030,331

Notes: 1. The carrying amount recorded on the consolidated balance sheets was calculated bydeducting accumulated depreciation and amortization and accumulated impairment
losses from acquisition costs.
2. Market value at the end of the fiscal year is calculated by the Company’s own appraisal
team and was based, in principle, on Japan’s Real Estate Appraisal Standards.
3. The main increases and decreases in the balance sheet during fiscal 2020 were an
increase in real estate acquisition (¥207,677 million), and decreases due to real estate
sales (¥198,635 million), and transfers to real property for sale (¥110,141 million).
4. The main increases and decreases in the balance sheet during fiscal 2021 were an
increase in real estate acquisition (¥183,902 million) and decreases due to transfers toreal property for sale (¥41,166 million) and real estate sales (¥37,626 million).

Integrated Report 2022

112

Data Section

Appendix
History
Organization
Chart

Shareholder Returns
The Mitsui Fudosan Group has long considered ways to upgrade andexpand the return of profits to shareholders with the aim of enhancing
corporate and shareholder value. In addition to the recovery of its mainstay
Leasing, Property Sales, and Management businesses in the fiscal year
under review, the Group is confident of a sustainable upswing in its
business performance in the next fiscal year and beyond. Acknowledging
its ability to undertake investments for future while at the same time stably
and continuously enhancing shareholder returns, the Group has decided toincrease its total shareholder return ratio from around 35% to around 45%.

¥55

Annual dividend per share for fiscal 2021
Own shares being repurchased
From February 7, 2022, to March 3, 2022
From May 16, 2022, to March 31, 2023 (Planned)¥15.0 billion¥15.0 billion(Planned maximum)

Total shareholder return ratio of profit
attributable to owners of parent

46.6%

Mitsui Fudosan Co., Ltd. was founded on July 15, 1941, as
Division
Shareholders’partofOffice
the reorganization of Mitsui Company by Mitsui
manHeadMeeting
DepartmentIt was founded with three million yen in capital andagement.
(also Office, Branch Office, and Institute)taskedwith managing the real estate owned by Mitsui
Department
Board ofBoard of Directors
Corporate Auditors
Company.
Since its founding, the Company’s primary business has
Corporate Auditor
President andbeen leasing and managing real estate such asChief
officebuildExecutive
Officer
ings. However, we have been
diversifying
Corporate
Auditor’s operations since
the mid-1950s, and in 1957, weDepartment
launched a marine land reclamation business by beginning a process of dredging andArchitectural and
Planning andSpace &
Real Estate
CARE DESIGN
Construction
Services of Chiba
Research In 1961,
Environment
InvestmentPrefecture.
DX Division
reclamation
in a coastal
regionDepartment
Department
Department
Institute
Research Institute

we began a business for developing and selling land for residential use and since 1968, we have also been constructing
and selling condominiums and detached housing.
In recent years,
the Mitsui Fudosan Group’s main busiCompensation
Advisory Committee
nessesareAdvisory
officeCommittee
building leasing, retail facility leasing, andNomination
residential property sales. We also operate other businesses
Executive Management
includinga hotel and resorts business, a logistics business, aCommittee
consulting business, a property management business, andoverseas businesses.
Below is an overview of how the Group’s business has
Accounting
Corporate
Executive
Corporate
GeneralInternal Audit
Personnel
andPlanning
Secretarial
Administration
Communications
developed
toFinancedate. Department
Department
Department
Department
Department
Department
Department
IFRS

Outlook for Fiscal 2022 (Year Ending March 31, 2023)
While the impact of COVID-19 is yet to dissipate, social and economic
activities are progressing toward business as usual amid efforts tocontrol the pandemic.
Taking into consideration these prevailing trends, revenue fromoperations, operating income, ordinary income, and profit attributableto owners of parent are all projected to reach record highs in the fiscal
year ending March 31, 2023. In addition to the recovery in operating
results particularly in the retail facility category of the Leasing segment,
the hotel and resort category of the Other segment, as well as Tokyo
Dome Group, it is expected that this year-on-year improvement will
largely be due to newly completed properties that will be used as
offices and retail facilities in the Leasing segment and successful
efforts to capture new demand through measures aimed at addressing the COVID-19 pandemic contributing to revenue and earnings.
Based on this, in fiscal 2022, Mitsui Fudosan is expected to reportrevenue from operations of ¥2,200.0 billion, up ¥99.1 billion year on
year. Operating income is estimated to increase by ¥55.0 billion to¥300.0 billion and ordinary income is estimated to increase by ¥35.0
billion to ¥260.0 billion. Profit attributable to owners of parent is
forecast to increase by ¥13.0 billion to ¥190.0 billion.
While some of the effects of the pandemic are projected to linger
impacting hotels, resorts, and Tokyo Dome Group, the Group willcontinue toward a performance recovery by improving profitability andreducing costs on an ongoing basis.

Segment Forecasts
Leasing: Reflecting such factors as contributions to revenue andearnings from TOKYO MIDTOWN YAESU, 50 Hudson Yards, andLaLaport FUKUOKA, which are scheduled for completion during thenext fiscal year, the recovery in sales in retail facilities and an increasein sales in the Work Styling business, revenue from operations andoperating income are expected to increase ¥51.8 billion and ¥22.0
billion, respectively, to reach record highs in the fiscal year ending
March 31, 2023.
Property Sales: Taking into consideration increases in unit prices
per property and improvements in profit margins in the Property Sales
to Individuals (Domestic) category and the continuous replacement ofassets in the Property Sales to Investors category, overall revenue andearnings in the Property Sales segment are anticipated to increase¥6.1 billion and ¥1.6 billion, respectively, reaching record highs.
Management: Carrying on from the fiscal year under review, trends
in the Brokerage for Individuals and Repark (car park leasing)businesses are expected to remain firm. Owing to these and otherfactors, revenue from operations and operating income are projected
to decrease ¥9.3 billion and ¥0.2 billion, respectively, coming in ataround the same level as the fiscal year ended March 31, 2022.
Other: The Other segment is anticipated to make a return to profit
with increases in both revenue from operations and operating incomeof ¥50.5 billion and ¥32.6 billion, respectively, in the fiscal year ending
March 31, 2023. In addition to the recovery from the fiscal year underreview, this is mainly due to the promotion of measures aimed at
capturing new demand.

Dividends
Taking into consideration a comprehensive range of factors including
the outlook for fiscal 2022 and the aforementioned shareholder
returns policy, the Company plans to pay a cash dividend of ¥60 per
share (including an interim dividend of ¥30 per share) for the fiscal year
ending March 31, 2023.

113 Integrated Report 2022

Human

Appraisal
Resources
July
1941 Mitsui Fudosan Co., Ltd. established(capital:million) Development
DX
DX ¥3 Preparation
Department
Department
DepartDepartDepartment
ment (II)ment (I)May
1949 Stock listed on the First Section of the
Tokyo
Stock
Exchange
Investor
Relations
Promotion
October
Absorption of Mitsui Company by Mitsui FudosanDepartment D&IDepartment
Sustainability1956
Promotion
Division
February 1962 Osaka Branch Office (now Kansai Head Office) opened
December 1966 Construction of Yurigaoka Project completed
Sustainability
Environment andPromotion
Energy Service
April
1968
Construction of Kasumigaseki Building completed
Department
Department
July
1969 Mitsui Real Estate Sales Co., Ltd. establishedApril
1972	
Sapporo Branch Office (now Hokkaido Branch Office), Hiroshima Branch Office (now Chugoku
BranchOffice),Homesand Lifestyle
Solution Partner Division
Office Building Division
Promotion Division
and Fukuoka Branch Office (now Kyushu Branch Office) opened
Strategy Planning andStrategy Planning andOctober1972 Nagoya Branch
Office(now Chubu Branch Office) opened
Solution Planning
Department
Administration Department
Administration Department
May
1973 Mitsui Fudosan America, Inc. established
SeptemberSolution
1973
Absorptionof Industry-Academia
Shin-NagoyaTokyo
Building
Co.,
Ltd. by
Mitsui Work
FudosanTenant Relations andLeasing andOperation andOperation and
Office Building
Office Building
Styling Project
Project Planning
Services
Private Consulting
Dome
Collaboration
Business Development
MarketingManagement
Management
Development
Project PlanningManagement
Department
Department
Department
Department
Department (now Tohoku Branch
Department (I)Department (I)DepartmentOffice)(II)
Department(I)
Department (I)Department
December
1973 Sendai
Branch OfficeopenedDepartment
Leasing andAdvanced
Office Building
Marketing
SectorConstruction of Shinjuku
September Public
1974
Mitsui
Building
completed
Strategy Planning
MarketingTechnology Fields
Development
Planning
Tokyo Chuo
Department
Department
Department
Collaboration
Department (II)Department
OfficeDepartment
October
1974 Mitsui Home Co.,
Ltd. and Mitsui Fudosan
Construction Co., Ltd. established
Planning and
Tenant Relations andOffice Building
MarketingBusiness Development
DevelopmentMay
1980 “Let’s” system of joint development launched
Department
Department
Department (III)
September 1980 Construction of Sun City fully completed
Leasing and
Tenant Relations andMarketingBusiness Development
Retail Properties Division
Department (II)Department (II)March
1981 Mitsui Fudosan (Singapore) Pte., Ltd. established
Leasing and
Tenant Relations andMarketing opened
Business Development
April
1981 LaLaport Funabashi
Shopping Center (now Mitsui Shopping Park LaLaport
TOKYO-BAY)
Strategy Planning and
Department
Department
Administration Department
September 1983 Halekulani opened
Kasumigaseki Tenant
Relations and Business
Development Department
January
1984 Mitsui Garden Hotel Osaka (now Mitsui Garden Hotel Osaka Yodoyabashi)
openedRetail Properties
Property
Retail Properties
Regional
Urban
Shinjuku Tenant
April
1988
Yokohama
BranchDevelopment
Office opened
Operation
Management
Leasing and Marketing
Development
Relations and Business
Department
Department
Department (I)Department
Department
Development Department
December
1989 MitsuiRetail
FudosanAmerica Group established
Properties&mall Project
Leasing and Marketing
Planning(II)
January
1990 MitsuiDepartment
Fudosan(U.K.) Ltd. established
Department
RetailProperties Office opened
Hotels and Resorts Division
April
1990 Chiba
BranchLeasing and Marketing
Department (III)July
1992 Mitsui Fudosan (Singapore) Pte., Ltd. renamed as Mitsui Fudosan (Asia) Pte., Ltd.
Strategy Planning and
Administration Department
July
1993 Construction of Bell Park City fully completed
September 1998
Yokohama
Logistics
PropertiesBayside
Business Marina Shops & RestaurantsInternational Division
Hotel and Resort
Hotel and Resort
Development
Development		(nowDivision
MITSUI OUTLET PARK YOKOHAMA BAYSIDE) opened
Department (I)Department (I)December 1999 Absorption of
Mitsui
FudosanAmerica,Inc.
byMitsui
FudosanAmerica
Group
Hotel
and
ResortStrategy Planning
Strategy Planning andMarketing
Department
Administration Department
Department
March
2000 Mitsui Fudosan America Group renamed as Mitsui Fudosan America, Inc.
Hotel and Resort
Hotel and ResortMarch2002 All shares of Mitsui Fudosan Construction Co., Ltd. sold
Development
Development
Logistics Properties
Logistics Properties
Logistics Properties
Logistics Properties
Department (II)Department (II)International
International
International
Operation
LeasingandDevelopment Sales Project
Planning
Department(III) subsidiary
Department (II) throughDepartment (I)October
2002
MitsuiReal
Estate
Co.,
Ltd.
made
into
a
full
a
share
exchange
Department
Marketing Department
Department
Department
Hotel and Resort
MarketingJuly
2005 Construction of Nihonbashi Mitsui Tower completed
Department
December 2005 Mitsui Fudosan Residential Co., Ltd. established
January
2007 ConstructionofToyosu-ProjectTOKYO MIDTOWN
Hibiya Urban Planning
Business
VentureAffiliatedKashiwanoha Urban
Yaesu Urban
Tokyo Midtown completed
Nihonbashi Urban
GotandaDevelopment
Life Scienceand Development
Innovation Planning
Co-creation
Business
Planning and Development
Planning
Development
Planning andDevelopment
Project
Planning
Innovation
Department
Department
Department
Department
Department
Development Department
Planning Department
Department
Department
Department
April
2012 Mitsui
Real Estate
Sales Co.,
Ltd. renamed
as MitsuiDepartment
Fudosan Realty
Co., Department
Ltd.
Tokyo Midtown Hibiya
Kannai-Project
July
2014 Kashiwa-no-ha Smart City Gate Square opened
Development
Development
Department
Planning
Department
September 2014 Construction of MFLP Sakai completed
Uchisaiwaicho Project
Department
February 2018 Construction of TOKYO MIDTOWN HIBIYA completed
October
2018 Mitsui Home Co., Ltd. made into a full subsidiary through a tender offer		Constructionof
55 Hudson Yards completed
KyushuChugokuKansai Head
Yokohama
Hokkaido
Chubu Branch
Chiba Branch
Tohoku Branch
BranchBranchOfficeBranchMarch2019 Construction of Nihonbashi Muromachi Branch
Mitsui Tower completed
January2021 TOKYO DOME CORPORATION made into a consolidated subsidiary through a tender offer
Development Co., Development
Administration
April
2022
Mitsui FudosanLtd. transferredfrom the First Section to the Prime Market of the Tokyo Stock Exchange
Kyoto Branch
Department (II)Department (I)Department
Note: Information current as of April 1, 2022
		following a review of the market classification of the Tokyo Stock Exchange

Integrated Report 2022

114

Data Section

Mitsui Fudosan’s Businesses
Fudosan Residential Co., Ltd. operates a sales agency for hous-

The following organization chart shows how the businesses of the main subsidiaries and affiliates mentioned above relate to Mitsui

and our 367 subsidiaries and affiliates (comprising 286 consoli-

ing and other properties. Mitsui Fudosan Realty Co., Ltd. oper-

Fudosan’s business.

dated subsidiaries and 81 equity method affiliates) as well as theates a brokerage business for the sale, leasing, and renting ofnames of the main companies engaging in each business andreal estate through the Mitsui Rehouse network. Mitsui Fudosan

how these companies are positioned within the business are as

Investment Advisors, Inc. (a consolidated subsidiary) sets up andfollows.

manages private placement real estate funds. Nippon Building

Descriptions of the main businesses operated by Mitsui Fudosan

Leasing

Fund Management Ltd., Mitsui Fudosan Accommodations FundManagement Co., Ltd., Mitsui Fudosan Logistics REIT Manage-

Mitsui Fudosan leases properties such as office buildings andment Co., Ltd., and Mitsui Fudosan Frontier REIT Management

retail facilities. Mitsui Fudosan America, Inc. and Mitsui FudosanInc. (all consolidated subsidiaries) operate an asset management(U.K.) Ltd. (both consolidated subsidiaries) lease properties suchbusiness for real estate investment funds. Mitsui Fudosan

as office buildings in the U.S. and U.K. respectively. MITSUI(Shanghai) Consulting Co., Ltd. and Mitsui Fudosan Consulting

FUDOSAN (ASIA) MALAYSIA SDN.BHD. and Mitsui Fudosan(Guangzhou) Co., Ltd. (both consolidated subsidiaries) operate

Taiwan Co., Ltd. (both consolidated subsidiaries) lease retailconsulting businesses based in China.

Property Sales

Other

Office Buildings
Overseas Businesses
Mitsui Fudosan America, Inc.
Mitsui Fudosan (U.K.) Ltd.

Mitsui Home Co., Ltd. (a consolidated subsidiary) and each

Fudosan Residential Co., Ltd. (a consolidated subsidiary) sells

franchise company provide the design, construction manage-

properties such as detached housing and condominiums. TID

ment, and sub-contracting construction of new-build homes.
Facility Operations

the U.S. and U.K. respectively.

Mitsui Fudosan Hotel Management Co., Ltd. (a consolidated

Management

subsidiary) operates hotels, primarily those leased from Mitsui
Fudosan. Imperial Hotel, Ltd.* (an equity method affiliate) oper-

Retail Facilities
GlobalMitsui Fudosan (Asia) Malaysia Sdn.
Bhd.
Mitsui Fudosan Taiwan Co., Ltd.

ates hotels. Mitsui Fudosan America, Inc. operates resort and

Mitsui Fudosan Facilities Co., Ltd. and Mitsui Fudosan Facilities

luxury facilities in Hawaii, U.S.A. Mitsui Fudosan Resort Manage-West Co., Ltd. (both consolidated subsidiaries) are the main

ment Co., Ltd. and Shima Resort Management Co., Ltd. (bothcompanies responsible for carrying out management, cleaning,

consolidated subsidiaries) operate resort and luxury facilities

maintenance, and other tasks for the leasing business. Mitsui

leased from Mitsui Fudosan. Mitsui Fudosan Golf Properties K.K.

Fudosan commissions Mitsui Fudosan Building Management

and MITSUI-NOMORI Co., Ltd. (both consolidated subsidiaries)

Co., Ltd. (a consolidated subsidiary) and Mitsui Fudosan Facili-

operate golf course businesses.

ties West Co., Ltd. to manage some of its office buildings. Mitsui
Fudosan Retail Management Co., Ltd. (a consolidated subsidiary)Tokyo Dome

carries out the management and operation of retail facilities.

TOKYO DOME CORPORATION (a consolidated subsidiary) oper-

Also, Mitsui Fudosan Residential Service Co., Ltd. and Mitsui

ates a stadium and arena business mainly centered on Tokyo

Fudosan Residential Service Kansai Co., Ltd. (both consolidated

Dome City.

subsidiaries) carry out the post-sale management, cleaning,

OthersOther
New Construction underConsignment
Mitsui Home Co., Ltd.
Mitsui Fudosan Hotel Management
Co., Ltd.
GlobalMitsui Fudosan America, Inc.
Mitsui Fudosan Golf Properties K.K.
MITSUI-NO-MORI Co., Ltd.
Mitsui Fudosan Resort Management
Co., Ltd.
Shima Resort Management Co., Ltd.
Imperial Hotel, Ltd.
OthersOther

Residential Lease Co., Ltd. (a consolidated subsidiary) acts as

Mitsui Designtec Co., Ltd. (a consolidated subsidiary) carries out

an agent for subleasing and managing rental housing. MITSUI

renovation work for homes and renewal work for offices and retail

HOME ESTATE Co., Ltd. (a consolidated subsidiary) offers rental

facilities. Daiichi Engei Co., Ltd. (a consolidated subsidiary) is a

housing intermediary and property management services. Mitsui

retailer of flowers and ornamental plants, seeds, and other gar-

Fudosan Realty Co., Ltd. (a consolidated subsidiary) operates

Other

dening products. Mitsui Fudosan TG Smart Energy Co., Ltd. (aRepark, a business offering hourly and monthly car park leasing.

consolidated subsidiary) operates a specified electricity transmis-

Mitsui Designtec Co., Ltd.
Daiichi Engei Co., Ltd.
Mitsui Fudosan TG Smart EnergyCo., Ltd.
Otherssion and distribution and heat supply business.
Mitsui Fudosan operates a business offering consultation regarding the development and securitization of real estate. Mitsui

115 Integrated Report 2022

* Stock of Imperial Hotel, Ltd. (an equity method affiliate) is listed on the Second Sectionof the Tokyo Stock Exchange.

Property Sales

Facility Operations

maintenance, and other tasks for properties. Mitsui Fudosan

Brokerage, Asset Management, etc.

Others

Leasing

Management

Tokyo DomeTOKYO DOME CORPORATION

Other

Residential Property Management and Operation

Property Management

GlobalTID Pte. Ltd.
Mitsui Fudosan America, Inc.
Mitsui Fudosan (U.K.) Ltd.

Pte. Ltd. (an equity method affiliate), Mitsui Fudosan America,
Inc. and Mitsui Fudosan (U.K.) Ltd. sell properties in Singapore,

Mitsui Fudosan Residential Co., Ltd.

OthersNew Construction under Consignment

Mitsui Fudosan sells properties such as business facilities. Mitsui

Property Sales

Mitsui FudosanCo., Ltd.

Lease Management and Operation

facilities in Malaysia and Taiwan respectively.

Leasing

Management
Property Management
Mitsui Fudosan Building Management
Co., Ltd.
Mitsui Fudosan Facilities Co., Ltd.
Mitsui Fudosan Facilities West Co., Ltd.
Mitsui Fudosan Retail Management
Co., Ltd.
Mitsui Fudosan Residential Service
Co., Ltd.
Mitsui Fudosan Residential Service
Kansai Co., Ltd.
Mitsui Fudosan Residential Lease
Co., Ltd.
MITSUI HOME ESTATE Co., Ltd.
OthersBrokerage, Asset Management, etc.
Mitsui Fudosan Residential Co., Ltd.
Mitsui Fudosan Realty Co., Ltd.
Mitsui Fudosan Investment Advisors, Inc.
Nippon Building Fund Management Ltd.
Mitsui Fudosan Accommodations
Fund Management Co., Ltd.
Mitsui Fudosan Frontier REITManagement Inc.
Mitsui Fudosan Logistics REITManagement Co., Ltd.
GlobalMitsui Fudosan (Shanghai)Consulting Co., Ltd.
Mitsui Fudosan Consulting (Guangzhou)Co., Ltd.
OthersIntegrated Report 2022

116

Data Section

Current Subsidiaries and Affiliates(A) Consolidated Subsidiaries

Name

Accommodation First Co., Ltd.

Location

Minato Ward, Tokyo

Capital(Millions of yen)

Business

10 Management

Proportion ofPortionvoting rights
indirectly
owned byowned
Mitsui Fudosan
100.0

Relationship with
Mitsui Fudosan

Renting
MitsuiofficeFudosanOfficers in
space
officers
concurrent
from
among
posts
Mitsuiconcurrent
Fudosanofficers

100.0

4

4

5

5

100.0

Leasing resort— facilities from
Mitsui Fudosan

Leasing,
Property sales

100.0

—

Yes

4

4

Chuo Ward, Tokyo

10 Management

100.0

Commissioned by— Mitsui Fudosan to
manage buildings

Yes

4

4

MF Service Apartment Co., Ltd.

Chuo Ward, Tokyo

10 Management

100.0

—

1

1

31 VENTURES Global Innovation Fund L.P.

Shibuya Ward, Tokyo

4,500 Other

99.0

—

0

0

31 VENTURES Global Innovation Fund II L.P.

Shibuya Ward, Tokyo

2,500 Other

99.0

—

0

0

MF Living Support Co., Ltd.

Koto Ward, Tokyo

100 Management

100.0

100.0

3

2

Kyushin Kaihatsu Inc.

Usuki City, Oita

120 Other

96.0

—

3

3

GREENCOLLAR, Inc.

Chuo Ward, Tokyo

22 Other

66.7

—

4

4

GREENCOLLAR NEWZEALAND LIMITED

Auckland, New Zealand

NZ$5,520,000 Other

100.0

100.0

4

4

31VENTURES-Global Brain-Growth I GK

Chuo Ward, Tokyo

6,262 Other

97.7

—

0

0

SUNLIFE CREATION Co., Ltd.

Chuo Ward, Tokyo

300

100.0

100.0

2

1

ShareTomorrow Co., Ltd.

Chuo Ward, Tokyo

25 Other

100.0

—

3

3

Shima Resort Management Co., Ltd.

Shima City, Mie

100 Other

100.0

Leasing resort— facilities from
Mitsui Fudosan

55Sumai Support Co., Ltd.

Chuo Ward, Tokyo

50 Management

100.0

100.0

3

3

Daiasama Golf Co., Ltd.

Kitasaku District, Nagano

150 Other

86.8

0.9

Daiichi Engei Co., Ltd.

Shinagawa Ward, Tokyo

480 Leasing, Other

100.0

—

Tsunamachi Club Co., Ltd.

Minato Ward, Tokyo

10 Other

100.0

TM Serviced Apartment CO., Ltd.

Minato Ward, Tokyo

10 Management

TM Park Residences Co., Ltd.

Minato Ward, Tokyo

10 Management

TOKYO-BAY Arena Co., Ltd.

Chuo Ward, Tokyo

100 Leasing

60.0

—

Tokyo Midtown Management Co., Ltd.

Minato Ward, Tokyo

100 Management

100.0

—

Narita Sports Development Co., Ltd.

Narita City, Chiba

30 Other

100.0—

Haimurubushi Co., Ltd.

Yaeyama District,
Okinawa

100.0

Leasing resort— facilities from
Mitsui Fudosan

Ise-Shima Resort Management Co., Ltd.

Shima City, Mie

50 Other

Wave Real Estate Co., Ltd.

Chuo Ward, Tokyo90

NBF Office Management Co., Ltd.

Property sales,
Management, etc.

200 Other

Yes

3

1

4

4

—

3

3

100.0

—

4

4

100.0

—

4

4

Yes

Yes

4

4

7

6

3

3

4

First Facilities Chiba Co., Ltd.

Chiba City, Chiba

20 Management

100.0

100.0

3

3

First Facilities Challenged Co., Ltd.

Chuo Ward, Tokyo

10 Management

100.0

100.0

3

3

Funabashi Health Center Co., Ltd.

Funabashi City, Chiba

10 Other

100.0

100.0

1

1

Frontier REIT SC Management Co., Ltd.

Chuo Ward, Tokyo

10 Management

100.0

100.0

4

4

10

8

4

1

Mitsui Designtec Co., Ltd.

Chuo Ward, Tokyo

MITSUI DEVELOPMENT CO., LTD.

Chuo Ward, Tokyo

500 Other

1,000

Leasing,
Property sales

100.0

100.0

Yes

4

Contracted by
Mitsui Fudosan for— office and retailfacility interior
work, etc.

Yes

MITSUI-NO-MORI Co., Ltd.

Chino City, Nagano

200 Management, Other

100.0

—

Yes

4

4

Chuo Ward, Tokyo

300 Management

100.0

—

Yes

5

5

100 Management

100.0

—

5

5

Leasing,
Property sales

100.0

—

3

3

Mitsui Fudosan Engineering Advisors Inc.

Chuo Ward, Tokyo
Sydney, Australia

A$6,000,000

Mitsui Fudosan Golf Properties K.K.

Chuo Ward, Tokyo

490 Other

100.0

—

3

3

Mitsui Fudosan Consulting (Guangzhou) Co.,Ltd.

Guangzhou, China

CNY2,426,130 Management

100.0

—

5

4

Mitsui Fudosan (Shanghai) Consulting Co.,Ltd.

Shanghai, China

CNY7,870,440 Management

100.0

—

5

4

Mitsui Fudosan Residential Lease Co., Ltd.

Shinjuku Ward, Tokyo

Mitsui Fudosan Retail Management Co., Ltd.
Mitsui Fudosan TG Smart Energy Co., Ltd.

117 Integrated Report 2022

Chuo Ward, Tokyo
Chuo Ward, Tokyo

490 Management

450 Management
100 Other

100.0

100.0
70.0

100.0

—
—

Mitsui Fudosan Investment Advisors, Inc.
Mitsui Fudosan Building Management Co.,Ltd.

Mitsui Fudosan Facilities Co., Ltd.

Location

Chuo Ward, Tokyo
Chuo Ward, Tokyo

Chuo Ward, Tokyo

Capital(Millions of yen)

Business

490 Management
490 Management

490 Management

100.0

—

Yes

7

6

100.0

Commissioned by— Mitsui Fudosan to
manage buildings

Yes

8

5

100.0

Commissioned by
Mitsui Fudosan to
manage, clean, and—maintain properties
and adjacentfacilities

Yes

12

10

Mitsui Fudosan Facilities West Co., Ltd.

Osaka City, Osaka

200 Management

100.0

100.0

Yes

5

5

Chuo Ward, Tokyo

450 Management

100.0

—

Yes

6

6

Mitsui Fudosan Hotel Management Co., Ltd.

Chuo Ward, Tokyo

490 Other

100.0

Leasing hotels— from Mitsui
FudosanYes

98

Mitsui Fudosan Resort Management Co., Ltd. Chuo Ward, Tokyo

100 Other

100.0

Leasing resort— facilities from Mitsui
Fudosan

5

4

40,000

Leasing, Property
sales, etc.

Mitsui Fudosan Residential Co., Ltd.*1, *2

Chuo Ward, Tokyo

100.0

—

Yes

10

3

Mitsui Fudosan Residential Service Co., Ltd.

Koto Ward, Tokyo

400 Management

100.0

100.0

Yes

9

6

Mitsui Fudosan Residential Service Kansai
Co., Ltd.

Osaka City, Osaka

300 Management

100.0

100.0

Yes

5

3

Mitsui Fudosan Residential Service Kyushu
Co., Ltd.

Fukuoka City, Fukuoka

100 Management

100.0

100.0

Yes

2

1

Mitsui Fudosan Residential Service Chugoku
Co., Ltd.

Hiroshima City,
Hiroshima

100 Management

100.0

100.0

Yes

2

1

Mitsui Fudosan Residential Service Tohoku
Co., Ltd.

Sendai City, Miyagi

100 Management

100.0

100.0

Yes

2

1

Mitsui Fudosan Residential Service Hokkaido
Sapporo City, Hokkaido
Co., Ltd.

100 Management

100.0

100.0

Yes

2

1

Mitsui Fudosan Logistics REIT Management
Co., Ltd.

Chuo Ward, Tokyo

200 Management

100.0

—

Yes

5

5

Mitsui Fudosan Loan Guarantee Co., Ltd.

Chuo Ward, Tokyo

100 Other

100.0

Guarantees loans— for properties soldby Mitsui Fudosan

33

Mitsui Fudosan Worldfarm Co., Ltd.

Chuo Ward, Tokyo

235 Other

97.9

—

4

3

Minato Estate Co., Ltd.

Chuo Ward, Tokyo

110 Other

100.0

—

3

3

LaLaport Agency Co., Ltd.

Chuo Ward, Tokyo

20 Management

100.0

100.0

8

8

Resident First Co., Ltd.

Minato Ward, Tokyo

10 Management

100.0

100.0

5

5

Nippon Building Fund Management Ltd.*3

Chuo Ward, Tokyo

495 Management

46.0

—

4

4

35 other companies

Yes

Commissioned by
Mitsui Fudosan to
manage retailfacilities, etc.

Yes

9

12

7

10

MFA Holding, Inc.

Wilmington, Delaware,
U.S.A.

US$1,000

Leasing, Property
sales, etc.

100.0

—

2

1

Mitsui Fudosan America, Inc.

Newark, Delaware,
U.S.A.

US$722,000

Leasing, Property
sales, etc.

100.0

100.0

3

1

5

4

101 other MFA Holding, Inc. Group companies—
Singapore

S$103,863,128

Leasing, Property
sales, etc.

100.0

7 other Mitsui Fudosan (Asia) Pte. Ltd. Group companies
Mitsui Fudosan (Asia) Malaysia Sdn. Bhd.

Kuala Lumpur, Malaysia

3

2

40.0
—

MYR Leasing,
115,794,000 Property sales

100.0

40.0

4

3

Leasing,
Property sales

100.0

—

3

1

4

3

Yes

8

3
7

3 other Mitsui Fudosan (Asia) Malaysia Sdn. Bhd. Group companies
Mitsui Fudosan (U.K.) Ltd.*1

London, U.K.

£477,250,000

29 other Mitsui Fudosan (U.K) Ltd. Group companies
Mitsui Fudosan Taiwan Co., Ltd.

Taipei, Taiwan—
NT$ Leasing, Property
3,676,308,545 sales, etc.

100.0

40.0

20,000 Management

100.0

—

10 other Mitsui Fudosan Taiwan Co., Ltd. Group companies
Mitsui Fudosan Realty Co., Ltd.

Chiyoda Ward, Tokyo—

Mitsui Home Co., Ltd.

Shinjuku Ward, Tokyo

100.0

—

Yes

10

MITSUI HOME ESTATE Co., Ltd.

Chiyoda Ward, Tokyo

13,900 Other
100 Management

100.0

100.0

Yes

0

0

MITSUIHOME ENGINEERING Co., LTD.

Setagaya Ward, Tokyo

100 Other

100.0

100.0

1

1

Mitsui Home Components Co., Ltd.

Chuo Ward, Tokyo

300 Other

100.0

100.0

1

1

MITSUIHOME LINKAGE Co., Ltd.

Shinjuku Ward, Tokyo

300 Other

100.0

100.0

0

0

5

2

8 other Mitsui Home Co., Ltd. Group companies
Yes

Yes

—

7 other Mitsui Fudosan Realty Co., Ltd. Group companies

Commissioned by
Mitsui Fudosan to
manage rental
housing

Relationship with
Mitsui Fudosan

Renting
MitsuiofficeFudosanOfficers in
space
officers
concurrent
from
among
posts
Mitsuiconcurrent
Fudosanofficers

Mitsui Fudosan Frontier REIT Management Inc.

Mitsui Fudosan (Asia) Pte. Ltd.

100.0

Mitsui Fudosan Accommodations FundManagement Co., Ltd.

MITSUI FUDOSAN AUSTRALIA PTY. LTD.

Name

Proportion ofPortionvoting rights
indirectly
owned byowned
Mitsui FudosanTOKYO DOME CORPORATION

Bunkyo Ward, Tokyo

—
2,038 Other

80.0

—

Integrated Report 2022

118

Data Section

Major Properties
Name

Location

Capital(Millions of yen)

Business

Proportion ofPortionvoting rights
indirectly
owned byowned
Mitsui Fudosan

Relationship with
Mitsui Fudosan

Renting
MitsuiofficeFudosanOfficers in
space
officers
concurrent
from
among
posts
Mitsuiconcurrent
Fudosanofficers

Matsudo Kousan Co., Ltd.

Matsudo City, Chiba

100 Other

100.0

100.0

2

2

TOKYO DOME HOTEL CORPORATION

Bunkyo Ward, Tokyo

100 Other

100.0

100.0

2

2

9 other TOKYO DOME CORPORATION Group companies—

The major properties owned by the Group (Mitsui Fudosan and consolidated subsidiaries) in each segment are shown below.

(A) Leasing Segment
Company name*2 Mitsui Fudosan Residential Co., Ltd.’s revenue (excluding inter-company sales between consolidated companies) accounts for over 10% of consolidated revenue
from operations. The main financial information of the company is as below.
(1) Revenue from operations: ¥355,326 million(2) Ordinary income: ¥42,131 million(3) Net profit: ¥30,605 million(4) Net assets: ¥158,608 million(5) Total assets: ¥941,192 million

Imperial Hotel, Ltd.*1

Chiyoda Ward, TokyoTID Pte. Ltd.

Singapore

RESOL HOLDINGS CO., LTD.*1
Keiyo Tochi Kaihatsu Co., Ltd.

SENON LIMITED

Business

Hotel management
1,485
and operation

33.2

—

2

0

4

3

3

2

2

2

Property sales toindividuals

49.0

—

Shinjuku Ward, Tokyo

3,948

Manages resort
facilities, etc.

41.0

—

Chiyoda Ward, Tokyo

400

Real estatebusiness

33.3

—

20.8

Commissioned toprovide security for—
Mitsui Fudosanbuildings

Yes

Yes

100 Security business

Building leasebusiness

42.5

Rents properties— from Mitsui
FudosanManagement andoperation of Kyushu
Kumamoto
International Airport

29.0

—

ST. LUKE’S TOWERS Co., Ltd.

Chuo Ward, Tokyo

100

Kyushu Kumamoto International Airport Co.,Ltd.

Kamimashiki District,
Kumamoto

6,440

Mihara City, Hiroshima

Management andoperation of
9,250
Hiroshima
International Airport

Miura District, Kanagawa

Management and494 operation of Shonan
Village Center

16.0

Chiyoda Ward, Tokyo

Surveillance
133 camera and systembusiness, etc.

38.2

Hiroshima International Airport Co., Ltd.

Village Shonan, Inc.*2

CREW SYSTEMS, INC.

Relationship with
Mitsui Fudosan

Renting
MitsuiofficeFudosanOfficers in
space
officers
concurrent
from
among
posts
Mitsuiconcurrent
Fudosanofficers

S$10,000,000

Shinjuku Ward, Tokyo

32.0

Yes

—

Total landarea (m2)Book value (Millions of yen)
Building

Land

Other

Total

Mar.
1929

32,245

Mitsui Building No. 2(Chuo Ward, Tokyo)

OfficeSteel-reinforced concrete structure
11 floors above ground3 basement floors

Feb.
1985

26,490Nihonbashi Mitsui Tower(Chuo Ward, Tokyo)

OfficeSteel construction/steel-reinforced
concrete structure (portion)
39 floors above ground4 basement floors

Jul.
2005

133,727

Nihonbashi Muromachi
Mitsui Tower(Chuo Ward, Tokyo)

Reinforced concrete structure/steel-reinforced concrete structure
Office,(portion)
Retail facility
26 floors above ground3 basement floors

Mar.
2019

151,579*1

10,255*1,*2

82,395

108,443

4,689

195,528

Muromachi Higashi Mitsui
Building(Chuo Ward, Tokyo)

Steel construction/steel-reinforced
concrete structure (portion)/
Office,reinforced concrete structure (portion)
Retail facility
22 floors above ground4 basement floors

Oct.
2010

40,363

2,454

8,671

25,088239

33,999Steel construction/steel-reinforced
concrete structure (portion)/
reinforced concrete structure (portion)
22 floors above ground4 basement floors

Feb.
2014

25,439*1

1,534*1

4,613

7,487

99

12,200

Muromachi Chibagin Mitsui
Building(Chuo Ward, Tokyo)

Steel construction/steel-reinforced
concrete structure (portion)/
Office,reinforced concrete structure (portion)
Retail facility
17 floors above ground4 basement floors

Feb.
2014

13,380*1

771*1,*2

2,442

8,398

50

10,890Nihonbashi 1-Chome Mitsui
Building(Chuo Ward, Tokyo)

Steel construction/steel-reinforced
Office,concrete structure (portion)
Retail facility 20 floors above ground4 basement floors

Jan.
2004

92,755

5,611

12,96264,427430

77,821

Mitsui Fudosan Co.,
Nihonbashi Astellas Mitsui
Ltd.
Building
Lotus Estate Co.,
(Chuo Ward, Tokyo)
Ltd.

OfficeSteel construction/reinforced
concrete structure/steel-reinforced
concrete structure
17 floors above ground2 basement floors

Jan.
2013

26,516

2,364

4,918

21,33859

26,315Yes*1 Submits a securities report.
*2 Although Mitsui Fudosan owns less than 20% of voting rights, it effectively holds influence over the company and therefore classifies it as an affiliate.

Office,Muromachi Furukawa Mitsui
RetailBuilding
facility,(Chuo Ward, Tokyo)
Residence
Mitsui Fudosan Co.,
Ltd.

1

2,782

14,2566,274

21

122,472

26,875

218

159,087

443

2

2

2

2

Suruga Building(Chuo Ward, Tokyo)

OfficeReinforced concrete structure
9 floors above ground4 basement floors

Oct.
2019

16,445

1,358

1,746

33,401

4

35,152

OfficeReinforced concrete structure/steel-reinforced concrete structure
32 floors above ground5 basement floors

Jun.
2018

83,746*1

3,460*1

30,781

55,776765

87,323

3

Nihonbasi Takashimaya
Mitsui Building(Chuo Ward, Tokyo)
Yaesu Mitsui Building(Chuo Ward, Tokyo)

OfficeSteel-reinforced concrete structure
10 floors above ground3 basement floors

Jun.
1965

22,520*1

1,865*1,*2

714

15,811

12

16,538

Kojun Building(Chuo Ward, Tokyo)

Steel-reinforced concrete structure
Retail facility 10 floors above ground2 basement floors

Sep.
2004

13,662*1

1,316*1

2,314

7,832

45

10,192

1Other
5 other Mitsui Home Co., Ltd. Group companies
1 other TOKYO DOME CORPORATION Group company
28 other Mitsui Fudosan (Asia) Pte. Ltd. Group companies
5 other Mitsui Fudosan (U.K) Ltd. Group companies
5 other MFA Holding, Inc. Group companies
4 other Mitsui Fudosan Taiwan Co., Ltd. Group companies
1 other Mitsui Fudosan (Asia) Malaysia Sdn. Bhd. Group companies
22 other companies

119 Integrated Report 2022

1

3

—

—

Total floorarea (m2)

Steel-reinforced concrete structure
7 floors above ground2 basement floors

Mitsui Fudosan Co.,Ltd.
M Three Real
Estate Co., Ltd.
Murosan Real
Estate Co., Ltd.

(B) Equity Method Affiliates
Capital(Millions of yen)

Date ofconstruction
completion/acquisition

OfficeMitsui FudosanCo., Ltd.

*3 Although Mitsui Fudosan owns less than 50% of voting rights, it effectively holds control of the company and therefore classifies it as a subsidiary.

Location

Structure and scale

Mitsui Main Building(Chuo Ward, Tokyo)*1 Qualifies as a specified subsidiary.

Name

Type ofproperty(1) Properties

Note: The “Business” column uses the name of the business segment.

Proportion ofPortionvoting rights
indirectly
owned byowned
Mitsui Fudosan

Property name (location)

3

1

2

OfficeSteel construction/steel-reinforced
concrete structure (portion)/
reinforced concrete structure (portion)
23 floors above ground4 basement floors

Jul.
2010

80,047

5,430

13,944

89,148102

103,195

OfficeSteel construction/steel-reinforced
concrete structure (portion)
36 floors above ground3 basement floors

Apr.
1968

145,494*1

8,264*1,*2

17,031

1,556

795

19,383Shin-Kasumigaseki Building
Office(Chiyoda Ward, Tokyo)

Steel construction/steel-reinforced
concrete structure (portion)
20 floors above ground3 basement floors

Feb.
1987

14,895*1

2,891*1

1,128

16,597

11

17,736

Toranomon Mitsui Building(Chiyoda Ward, Tokyo)

Steel construction/steel-reinforced
concrete structure (portion)
14 floors above ground2 basement floors

Sep.
1972

23,606

3,264

1,433

32,292

34

33,760Mitsui Fudosan Co., Sumitomo Mitsui Banking
Corporation Head Office
Ltd.
Building(Chiyoda Ward, Tokyo)

Kasumigaseki Building(Chiyoda Ward, Tokyo)

OfficeIntegrated Report 2022

120

Data Section

Company name

Structure and scale

Date ofconstruction
completion/acquisition

Total floorarea (m2)

Total landarea (m2)

Building

Land

Other

Total

OfficeSteel-reinforced concrete structure
11 floors above ground2 basement floors

Feb.
1981

20,373

1,851

2,730

23,69050

26,471

OfficeSteel construction/steel-reinforced
concrete structure (portion)
23 floors above ground2 basement floors

Mar.
2003

13,923*1

GranTokyo North Tower(Chiyoda Ward, Tokyo)

OfficeSteel construction/steel-reinforced
concrete structure (portion)/
reinforced concrete structure (portion)
43 floors above ground4 basement floors

Oct.
2007

82,001*1

TOKYO MIDTOWN HIBIYA(Chiyoda Ward, Tokyo)

Steel construction/steel-reinforced
Office,concrete structure (portion)
Retail facility 35 floors above ground4 basement floors

Feb.
2018

189,245

10,70278,002

121,375

2,795

202,173

Hibiya U-1 Building(Chiyoda Ward, Tokyo)

OfficeSteel-reinforced concrete structure
26 floors above ground4 basement floors

Mar.
2018

50,848

5,065—

67,149—67,149Otemachi One Tower(Chiyoda Ward, Tokyo)

OfficeSteel-reinforced concrete structure
40 floors above ground5 basement floors

Feb.
2020

56,592*1

3,297*1

25,39090,946

1,524

Aoyama OM-SQUARE(Minato Ward, Tokyo)

OfficeSteel construction/steel-reinforced
concrete structure (portion)
25 floors above ground3 basement floors

Jul.
2008

14,603*1

2,040*1

2,472

8,903

28

OfficeSteel construction/steel-reinforced
concrete structure (portion)
43 floors above ground4 basement floors

Jan.
2003

Office,Retailfacility,
Residence

Steel construction/steel-reinforced
concrete structure (portion)/
reinforced concrete structure (portion)
54 floors above ground5 basement floors

OfficeReinforced concrete structure/steel-reinforced concrete structure(portion)
31 floors above ground2 basement floors

May
2018

75,178*1

5,407*1,*2

GATE CITY OHSAKI(Shinagawa Ward, Tokyo)

OfficeSteel construction/steel-reinforced
concrete structure (portion)/
reinforced concrete structure (portion)
24 floors above ground4 basement floors

Jan.
1999

33,612

5,405

RAYARD MIYASHITA PARK
(Shibuya Ward, Tokyo)

Steel construction/steel-reinforced
concrete structure (portion)/
Retail facility reinforced concrete structure (portion)
4 floors above ground
1 basement floor

Jul.
2020

Urban Dock LaLaport
TOYOSU(Koto Ward, Tokyo)

Steel construction/steel-reinforced
concrete structure (portion)
Retail facility
5 floors above ground
1 basement floor

Aug.
2006

164,525

Mitsui Fudosan Industrial
Park Haneda(Ota Ward, Tokyo)

Logistics
facility

Jun.
2019

81,030LAZONA Kawasaki Plaza(Kawasaki City, Kanagawa)

Steel construction/reinforced
concrete structure (portion)
Retail facility
6 floors above ground
1 basement floor

Sep.
2006

69,081*1

Property name (location)

Marunouchi Mitsui Building(Chiyoda Ward, Tokyo)
Jimbocho Mitsui Building(Chiyoda Ward, Tokyo)

Mitsui Fudosan Co.,
Ltd.

Chorus Property,
LLC

Shiodome City Center(Minato Ward, Tokyo)

TOKYO MIDTOWN(Minato Ward, Tokyo)

msb Tamachi (Tamachi
Station Tower South)(Minato Ward, Tokyo)

Mitsui Fudosan Co.,Ltd.

Yokohama Mitsui Building(Yokohama City, Kanagawa)
Mitsui Fudosan Co.,Ltd.
LaLaport YOKOHAMA
Kamoi Properties, (Yokohama City, Kanagawa)
LLC
LaLaport EBINA(Ebina City, Kanagawa)
Mitsui Fudosan Co.,Ltd.
LaLaport Mitsui Building(Funabashi City, Chiba)

121 Integrated Report 2022

Type ofproperty

OfficeSteel construction
5 floors above ground

Steel construction/steel-reinforced
concrete structure (portion)/
reinforced concrete structure (portion)
30 floors above ground2 basement floors

Jan.
2007

15,775*1

281,901*1*1

1,252*1

3,723*1

1,322*1

34,465*1

*1

Feb.
2012

34,50290,3568,055*267,499*2

36,213*2

72,013*2

7,799

Feb.
2007

244,154

102,030

Steel construction
Retail facility
4 floors above ground

Oct.
2015

121,127

32,942

Jun.
1988

23,558157,850

Steel-reinforced concrete structure/steel construction (portion)
14 floors above ground
1 basement floor

3,370

12,5191,700

41,12827,936

5,727

8,179

43,778

9,468

148,163—

13,445

17

84

29

1,453

1,166

86

Company name

Property name (location)

Type ofproperty*2

12,955

10,745

10,6693,644

14,393

12,295—20,19916,05626,022

6,940

17,073

1,278

784

863

432

240

391

Structure and scale

Date ofconstruction
completion/acquisition

Total floorarea (m2)

Total landarea (m2)

Building

Land

Other

Total

Book value (Millions of yen)

LaLaport TOKYO-BAY(Funabashi City, Chiba)

Reinforced concrete structure/steel
construction (portion)/steel-reinforced
Retail facility concrete structure (portion)
10 floors above ground
1 basement floor

Apr.
1981

280,529

157,850

20,607

48,9192,612

73,958ViVit Minami Funabashi(Funabashi City, Chiba)

Retail facility

Steel construction
5 floors above ground

Nov.
2020

98,02630,258

2,777

7,077

78

9,934

Mitsui Fudosan Logistics
Park Funabashi I(Funabashi City, Chiba)

Logistics
facility

Reinforced concrete structure/steel
construction (portion)
8 floors above ground

Oct.
2016

202,156

51,00023,575

4,425

1,086

29,086GATE SQUARE(Kashiwa City, Chiba)

Office,Retailfacility,
Residence

Shop & Office
Steel-reinforced concrete structure
7 floors above ground
1 basement floor
Hotel & Residence
Reinforced concrete structure
14 floors above ground
1 basement floor

Apr.
2014

48,166

20,871

7,750

4,858

444

13,053

117,861

Park City Kashiwa-no-haCampus The Gate Tower
West(Kashiwa City, Chiba)

Residence, Steel-reinforced concrete structure
Retail facility 36 floors above ground

Jan.
2018

38,771

6,095

9,151

2,823

462

12,436

11,404

MITSUI OUTLET PARKKISARAZU(Kisarazu City, Chiba)

Steel construction/wood structure
Retail facility (portion)
1 floor above ground

Apr.
2012

68,796350,325

5,300

11,727

1,711

18,739Jul.
2021

47,415

26,526

16,891374

3,949

21,214

11,56756,383

11,199Mitsui Fudosan Co.,Ltd.

PARK WELLSTATE
Mitsui Fudosan
KAMOGAWA
Residential Co., Ltd.
(Kamogawa City, Chiba)

Residence

Reinforced concrete structure
22 floors above ground
1 basement floor

LaLaport FUJIMI(Fujimi City, Saitama)

RetailSteel construction
4 floors above ground
Retail facility
Parking Tower
Steel construction
5 floors above ground

Feb.
2015

183,858

152,055

16,20810,365

1,089

27,663

29,102

LaLaport NUMAZU(Numazu City, Shizuoka)

RetailSteel construction
4 floors above ground
Retail facility
Parking Tower
Steel construction
5 floors above ground

Aug.
2019

164,353

119,816*2

21,149—2,233

23,382

19,259Otemachi Tatemono
Nagoya Station Building(Nagoya City, Aichi)

Steel-reinforced concrete structure
Office,11 floors above ground
Retail facility
2 basement floors

Aug.
2007

37,834

2,976

218

14,242

8

14,469Steel construction/reinforced
concrete structure (portion)
20 floors above ground2 basement floors

Jan.
2021

29,4102,247*2

11,4644,686*2655

16,806

Steel construction
Retail facility 4 floors above ground(6 floors above ground in part)

Sep.
2018

171,815

83,200*2

18,603—

2,017

20,621

Yodoyabashi Mitsui
Building(Osaka City, Osaka)

Steel construction/steel-reinforced
concrete structure (portion)/
Office,reinforced concrete structure (portion)
Retail facility
16 floors above ground3 basement floors

Mar.
2008

38,934*1

3,091*1

4,740

14,63486

19,462EXPOCITY(Suita City, Osaka)

Retail facility

Steel construction
3 floors above ground

Nov.
2015

222,506

172,240*2

17,055—

1,743

18,799MITSUI OUTLET PARKMARINE PIA KOBE
(Kobe City, Hyogo)

Factory Outlet
Steel construction
3 floors above ground
Retail facility
Annex
Steel construction
2 floors above ground

Jul.
1999

61,961

78,205123

11,096559

11,779

Sapporo Mitsui JP
Building(Sapporo City, Hokkaido)

Steel construction/steel-reinforced
concrete structure (portion)/
Office,reinforced concrete structure (portion)
Retail facility
20 floors above ground3 basement floors

Aug.
2014

47,714*1

3,861*1

8,154

6,707

78

14,9401251 Avenue of theAmericas (New York City,
New York, U.S.A.)

OfficeSteel construction
54 floors above ground4 basement floors

Dec.
1986

215,308

9,232

32,48525,537

14

58,03855 Hudson Yards(New York City, New York,U.S.A.)

OfficeReinforced concrete structure
51 floors above ground2 basement floors

Oct.
2018

117,585*1

3,718*1

72,942

48,673—

121,616

190,746

Nagoya Mitsui North Building
Office(Nagoya City, Aichi)

Steel construction
Retail facility 6 floors above ground
1 basement floor

OfficeBook value (Millions of yen)

14,233

Mitsui Fudosan Co., LaLaport NAGOYA minato
AQULS
Ltd.
(Nagoya City, Aichi)

31,72927,58930,09921,57429,761

10,707—431

11,138

1,788

48,91930

73,958Mitsui Fudosan
America, Inc.
(Overseas
subsidiary)

Integrated Report 2022

122

Data Section

Strategic Shareholdings
Company name

Mitsui Fudosan(U.K.) Ltd.
(Overseas
subsidiary)

Property name (location)

Type ofproperty

Structure and scale

Date ofconstruction
completion/acquisition(A) Standards and Approach to the Classification of Investment SharesBook value (Millions of yen)

Total floorarea (m2)

Total landarea (m2)

Building

Land

Other

Total

5 Hanover Square(London, U.K.)

OfficeReinforced concrete structure
7 floors above ground
1 basement floor

1 Angel Court(London, U.K.)

OfficeSteel construction/reinforced
concrete structure (portion)
27 floors above ground2 basement floors

Mar.
2017

45,384

3,925*2

15,061

12,920*2

7,370

35,351

Reinforced concrete structure/steel construction (portion)
Retail facility 2 floors above ground
1 basement floor(3 floors above ground in part)

Jan.
2016

53,20047,138*2

12,072—

3,193

15,265

Reinforced concrete structure
Retail facility 1 floor above ground(2 floors above ground in part)

Dec.
2018

79,790177,932*2

8,186

—

3,609

11,796

MITSUI OUTLET PARK
Sanxin Outlets Co., LINKOU(New Taipei City, Taiwan)
Ltd.
(Overseas
subsidiary)
MITSUI OUTLET PARKTAICHUNG PORT
(Taichung, Taiwan)

Mar.
2012

7,957

1,122

3,324

9,436

314

13,075(2) Others
Mitsui Fudosan Co., Chuo Ward, Tokyo
Ltd.
Land

Plannedconstruction
site

—

—

2,899

—

14,780—14,780Mitsui Fudosan
America, Inc.
(Overseas
subsidiary)

Plannedconstruction
site

—

—

5,760*1—

121,362—

121,362

New York City, New York,U.S.A.
Land

Note: Land includes leasehold. Other is tangible fixed assets excluding buildings, land, and construction in progress.
*1 Data for the buildings and land are calculated based on the area in which the Group (the Company and its consolidated subsidiaries) maintains an equity interest.
*2 Land includes the area and amount corresponding to leasehold.

(B) Others
Company name

Property name (location)

Type ofproperty

Halekulani Okinawa
Mitsui Fudosan Co., (Kunigami District, Okinawa) HotelLtd.
Mitsui Fudosan
ResortHOTEL THE MITSUI KYOTO
HotelManagement Co., (Kyoto City, Kyoto)Ltd.
Mitsui Fudosan Co.,
Mitsui Garden Hotel Ginza
Ltd.
Premier
Mitsui Fudosan
Other domestic hotels in 18
Hotel Management
locationsCo., Ltd.
Mitsui Fudosan
America, Inc.
(Overseas
subsidiary)

Halekulani
One other overseas hotel inanother location

Structure and scale
Reinforced concrete structure
10 floors above ground

Date ofconstruction
completion/acquisition

Total floorarea (m2)

Total landarea (m2)

Building

Land

Other

Total

May
2019

40,731

126,746*2

19,0093,907*2

4,106

27,023

Book value (Millions of yen)purposes other than net investments from a medium- tolong-term perspective. Mitsui Fudosan also holds othershares for the purpose of investment income and classifies these as investment shares.

In overall consideration for business strategy and relationships with business partners, to improve the Group’s
corporate value, Mitsui Fudosan holds shares consideredeffective for management strategies as shares for(B) Investment Shares Held for Purposes Other Than Net Investments(1) M ethod for verifying policy and rationality of shareholdings and content of verificationsof individual stocks by the Board of Directors, etc.
with the shareholdings are commensurate with the capitalcost. Furthermore, in addition to confirming the significance of shareholdings from perspectives such as transaction performance, stable funding procurement, andcreation of business opportunities, we also verify whether
or not the holdings contribute to improving the mediumto long-term corporate value of the Group.
At a meeting held on May 13, 2022, the Board of Directors verified appropriateness with regard to the significance of strategic shareholdings based on thequantitative rationality of holding and relationships withbusiness partners for each stock. As a result, we are considering selling stocks for which the rationality of holdingor significance of holding has decreased, based on factors such as impact on the stock market.

In overall consideration for business strategy and relationships with business partners, to improve the Group’s
corporate value, Mitsui Fudosan holds shares in listedcompanies that are considered effective for management
strategies from a medium- to long-term perspective asshares for purposes other than net investments (strategic
shareholdings).
Furthermore, we continuously review shareholding
status. Upon confirming the significance of shareholdings
based on the quantitative rationality of holdings and relationships with business partners, we have decided toreduce our shareholdings. In fiscal 2021, we sold four
stock brands worth a total of ¥50.7 billion.
When verifying the rationality of shareholdings, weverify whether or not the benefits and risks associated(2) N umber of stocks and total amount as recorded on the balance sheet
Book value of shares(Millions of yen)
11,309730,198

Number of stocks

Steel construction/steel-reinforced
concrete structure (portion)/reinforced
concrete structure/wood structure
4 floors above ground
1 basement floor

Nov.
2020

19,026

7,454

12,255

6,545

2,879

21,680Unlisted shares
Other holdings——

206,965*1

34,149*1,*2

39,6198,323*2

3,633

51,576(Stocks which saw an increase in the number of shares in fiscal 2021)

Hotel

Hotel

—

—

77,172

20,927*2

12,796

2,794*2

1,848

Golf course

Mitsui Fudosan Co., Tsunamachi Mitsui ClubLtd.
(Minato Ward, Tokyo)

Floors: reinforced concrete structureState guest Walls: masonry constructionhouse
2 floors above ground
1 basement floor

TOKYO DOMECORPORATIONTOKYO DOMEHOTELCORPORATIONTokyo Dome City
(Bunkyo Ward, Tokyo)

Multipurpose
Dome,
Hotel,
Retailfacility

—

Jan.
2021

399,728

131,535*2

76,332

155,198

10,684242,216

TOKYO DOMECORPORATIONATAMI BAY RESORTKORAKUEN(Shizuoka City, Shizuoka)

Hotel

Steel construction/reinforced concrete
structure
19 floors above ground

Jan.
2021

44,137

23,575

9,484

1,027

542

11,053—

Number of stocks

Total amount of transactions
to increase the number ofshares (Millions of yen)

Unlisted shares

4566

Other holdings——

17,439Mitsui Fudosan Co.,Ltd.
Mitsui Fudosan Golf
Mitsuinomori Karuizawa
Properties Co., Ltd.
Country Club
Daiasama Golf ClubSix other locations
Co., Ltd.
Kyusin Kaihatsu
Inc.

—

32,057

6,896,415*2

723

1,360*2

1,891

3,975

Feb.
1913

5,427

28,563975

23,571

563

25,11071
57

Reason for increase
Considered effective formanagement strategies from a
medium- to long-term perspective—(Stocks which saw a decrease in the number of shares in fiscal 2021)

Number of stocks
Unlisted shares
Other holdings—
4

Total amount of sales todecrease the number ofshares (Millions of yen)—
50,731

Note: Land includes leasehold. Other is tangible fixed assets excluding buildings, land, and construction in progress.
*1 Data for the buildings and land are calculated based on the area in which the Group (the Company and its consolidated subsidiaries) maintains an equity interest.
*2 Land includes the area and amount corresponding to leasehold.

123 Integrated Report 2022

Integrated Report 2022

124

Data Section(3) Information concerning the number of shares held and amount recorded on thebalance sheet regarding specified investment shareholdings and deemedshareholdings

Stock nameCurrent fiscal year

Previous fiscal year

Number ofshares held

Number ofshares held

Book value of shares(Millions of yen)Book value of shares(Millions of yen)

3,129,560

3,129,560

5,229

4,486

Purpose of shareholding, quantitative effects of shareholding, and reasons forincrease in number of shares
See Note 1

Holdings by the companyof the Company’s shares

The Company has borrowings from T&D Holdings, Inc.’s consolidated
subsidiaries Taiyo Life Insurance Company and Daido Life Insurance Company.
We believe that the investment is beneficial to the stable procurement of funds
by the Mitsui Fudosan Group.

No
However, T&D Holdings,
Inc.’s consolidated
subsidiaries Taiyo Life
Insurance Company andDaido Life Insurance
Company hold shares.

Specified Investment Shareholdings

Stock nameCurrent fiscal year

Previous fiscal year

Number ofshares held

Number ofshares held

Book value of shares(Millions of yen)Book value of shares(Millions of yen)

23,796,900
Oriental Land Co., Ltd.
559,465

6,493,466
Mitsui & Co., Ltd.
21,610

Toray Industries, Inc.

TBS HOLDINGS, INC.

19,460,720
12,431
5,713,728
10,2102,398,269
MS&AD Insurance Group Holdings,
Inc.
9,540

Daiwa House Industry Co., Ltd.

FUJIFILM Holdings Corporation

2,565,300
8,211
1,092,600
8,196
2,096,400

Taisei Corporation

7,410

1,744,657
Sumitomo Mitsui Financial Group, Inc.
6,816

Toshiba Corporation

1,439,050
6,691
8,554,000

SHIMIZU CORPORATION
6,287

Purpose of shareholding, quantitative effects of shareholding, and reasons forincrease in number of shares
See Note 1

The Company has held the shares of Oriental Land Co., Ltd. since 1960 when
the Company was involved in its establishment. Mitsui Garden Hotel PRANA
26,796,900 Tokyo Bay in Urayasu City, Chiba Prefecture, a property operated and managed
by the Mitsui Fudosan Group, is a partner hotel of Tokyo Disney Resort. The
Company is an official sponsor of Tokyo Disneyland and Tokyo DisneySea,
which are operated by Tokyo Disney Resort. We believe that the investment is
460,452 beneficial to the smooth promotion of the Mitsui Fudosan Group’s businessactivities and to the creation of business opportunities for the Mitsui FudosanGroup.
Mitsui & Co., Ltd. is a co-operator of Otemachi One in Chiyoda Ward, Tokyo. We
6,493,466 believe the investment is beneficial to the creation of business opportunities for
the Mitsui Fudosan Group.
Mitsui & Co., Ltd. is a tenant in properties including Sapporo Mitsui JP Building
15,186 in Sapporo City, Hokkaido. We believe the investment is beneficial to the leasing
business of the Mitsui Fudosan Group.

T&D Holdings, Inc.
Holdings by the companyof the Company’s shares

673,100
East Japan Railway Company
4,785
No

815,300
Seven & i Holdings Co., Ltd.
4,739
5,611,250
The Chiba Bank, Ltd.

Yes

4,068
620,778

19,460,720 Toray Industries, Inc. is a tenant in properties including Nihonbashi Mitsui Tower
in Chuo Ward, Tokyo. We believe the investment is beneficial to the leasing
14,013 business of the Mitsui Fudosan Group.

Yes

IBIDEN CO., LTD.

5,713,728 TBS HOLDINGS, INC. is a co-operator of the akasaka Sacas commercial
complex in Minato Ward, Tokyo. We believe the investment is beneficial to the
12,593 creation of business opportunities for the Mitsui Fudosan Group.

Yes

Kajima CorporationNo
The Company has borrowings from MS&AD Insurance Group Holdings, Inc.’s
However, MS&AD
3,025,069 consolidated subsidiary Mitsui Sumitomo Insurance Co., Ltd. We believe that theInsurance Groupinvestment is beneficial to the stable procurement of funds by the Mitsui
Holdings, Inc.’s
Fudosan Group.
consolidated subsidiaries
MS&AD Insurance Group Holdings, Inc.’s consolidated subsidiary Mitsui
Mitsui Sumitomo
Sumitomo Insurance Co., Ltd. is a tenant in properties including LaLaport Mitsui Insurance Co., Ltd. and
9,822 Building in Funabashi City, Chiba Prefecture. We believe the investment is
Aioi Nissay Dowa
beneficial to the leasing business of the Mitsui Fudosan Group.
Insurance Co., Ltd. holdshares.
2,565,300 Daiwa House Industry Co., Ltd. is a co-operator of properties including DiverCity
Tokyo Plaza in Koto Ward, Tokyo. We believe the investment is beneficial to the8,438 creation of business opportunities for the Mitsui Fudosan Group.

Mitsui Chemicals, Inc.

Asahi Kasei Corp.

Yes

2,096,400 Taisei Corporation is the supplier of new construction including TOYOSUBAYSIDE CROSS TOWER in Koto Ward, Tokyo. We believe the investment isbeneficial to the smooth promotion of the Mitsui Fudosan Group’s business
8,745
activities.

Yes

The Company has borrowings from Sumitomo Mitsui Financial Group, Inc.’s
1,744,657 consolidated subsidiary Sumitomo Mitsui Banking Corporation. We believe thatthe investment is beneficial to the stable procurement of funds by the Mitsui
Fudosan Group.
Sumitomo Mitsui Financial Group, Inc.’s consolidated subsidiary Sumitomo
Mitsui Banking Corporation is a tenant in properties including Sumitomo Mitsui
7,052 Banking Corporation Head Office Building in Chiyoda Ward, Tokyo. We believe
the investment is beneficial to the leasing business of the Mitsui FudosanGroup.

No
However, Sumitomo
Mitsui Financial Group,
Inc.’s consolidated
subsidiary Sumitomo
Mitsui Banking
Corporation holds shares.

1,439,050 Toshiba Corporation is a co-operator of LAZONA Kawasaki Plaza located in
Kawasaki City, Kanagawa Prefecture. We believe the investment is beneficial to5,341 the creation of business opportunities for the Mitsui Fudosan Group.

Yes

2,465,770
3,676
1,148,080
3,547
3,247,084
3,450
3,678,800

Obayashi Corporation
3,310

Yes

1,092,600 FUJIFILM Holdings Corporation is a tenant in TOKYO MIDTOWN in Minato Ward,
Tokyo. We believe the investment is beneficial to the leasing business of the
6,997 Mitsui Fudosan Group.

8,554,000 SHIMIZU CORPORATION is the supplier of new construction including Mitsui
Garden Hotel Roppongi Premier in Minato Ward, Tokyo. We believe theinvestment is beneficial to the smooth promotion of the Mitsui Fudosan Group’s
7,676 business activities.

3,755

816,996
Sumitomo Mitsui Trust Holdings, Inc.
3,268

2,902,600
INFRONEER Holdings Inc.
3,024
282,300
BANDAI NAMCO Holdings Inc.
2,623
748,500
Keisei Electric Railway Co., Ltd.
2,556

Yes

784,600
TOBU RAILWAY CO., LTD.
2,337

Sumitomo Mitsui Construction Co.,Ltd.

125 Integrated Report 2022

5,397,965
2,250

673,100 East Japan Railway Company is a co-operator of the GranTokyo North Tower in
Chiyoda Ward, Tokyo. We believe the investment is beneficial to the creation of
5,481 business opportunities for the Mitsui Fudosan Group.

Yes

815,300 Seven & i Holdings Co., Ltd.’s consolidated subsidiary THE LOFT CO., LTD. is atenant in properties including EXPOCITY located in Suita City, Osaka Prefecture.
We believe the investment is beneficial to the leasing business of the Mitsui3,575 Fudosan Group.

Yes

The Company has borrowings from The Chiba Bank, Ltd. We believe that the
5,611,250 investment is beneficial to the stable procurement of funds by the Mitsui
Fudosan Group.
The Chiba Bank, Ltd. is a co-operator of Muromachi Chibagin Mitsui Building in
4,150 Chuo Ward, Tokyo. We believe the investment is beneficial to the creation ofbusiness opportunities for the Mitsui Fudosan Group.

Yes

620,778 IBIDEN CO., LTD.’s consolidated subsidiary IBIDEN GREENTEC CO., LTD. is the
supplier of planting management work at properties including TOKYO MIDTOWN
in Minato Ward, Tokyo. We believe the investment is beneficial to the smooth
2,974 promotion of the Mitsui Fudosan Group’s business activities.

Yes

2,465,770 Kajima Corporation is the supplier of new construction including Otemachi One
in Chiyoda Ward, Tokyo. We believe the investment is beneficial to the smooth
3,802 promotion of the Mitsui Fudosan Group’s business activities.

Yes

1,148,080 Mitsui Chemicals, Inc. is a tenant in properties including Shiodome City Centerin Minato Ward, Tokyo. We believe the investment is beneficial to the leasing
4,130 business of the Mitsui Fudosan Group.

Yes

3,247,084 Asahi Kasei Corp. is a tenant in Hibiya Mitsui Tower in Chiyoda Ward, Tokyo. We
believe the investment is beneficial to the leasing business of the Mitsui
4,093 Fudosan Group.

Yes

3,678,800 Obayashi Corporation is the supplier of new construction for Mitsui Fudosan
Logistics Park Funabashi III in Funabashi City, Chiba Prefecture. We believe theinvestment is beneficial to the smooth promotion of the Mitsui Fudosan Group’s
3,709 business activities.

Yes

The Company has borrowings from Sumitomo Mitsui Trust Holdings, Inc.’s
816,996 consolidated subsidiary Sumitomo Mitsui Trust Bank, Limited. We believe thatthe investment is beneficial to the stable procurement of funds by the Mitsui
Fudosan Group.
Sumitomo Mitsui Trust Holdings, Inc.’s consolidated subsidiary Sumitomo Mitsui
Trust Bank, Limited, is a tenant in properties including Mitsui Main Building in
3,159 Chuo Ward, Tokyo. We believe the investment is beneficial to the leasing
business of the Mitsui Fudosan Group.

No
However, Sumitomo
Mitsui Trust Holdings,
Inc.’s consolidated
subsidiary Sumitomo
Mitsui Trust Bank,
Limited, holds shares.

2,902,600 INFRONEER Holdings Inc.’s consolidated subsidiary MAEDA CORPORATION is
the supplier of new construction, including Halekulani Okinawa in Onna Village,
Kunigami District, Okinawa Prefecture. We believe the investment is beneficial
2,840 to the smooth promotion of the Mitsui Fudosan Group’s business activities.

No
However, INFRONEER
Holdings Inc.’s
consolidated subsidiary
MAEDA CORPORATION
holds shares.

282,300 Bandai Namco Holdings Inc.’s consolidated subsidiary BANDAI NAMCO
Amusement Inc. is a tenant in properties including LaLaport AICHI TOGO locatedin Togo Town, Aichi District, Aichi Prefecture. We believe the investment is2,273 beneficial to the leasing business of the Mitsui Fudosan Group.

Yes

748,500 Keisei Electric Railway Co., Ltd. is the co-operator of Mitsui Garden Hotel
Shiodome Italia-gai in Minato Ward, Tokyo. We believe the investment isbeneficial to the creation of business opportunities for the Mitsui Fudosan
2,841Group.

Yes

784,600 TOBU RAILWAY CO., LTD. is the land and building owner of Tobu Annex
Building, in which WORK STYLING Ikebukuro Nishiguchi is a tenant, in Toshima
Ward, Tokyo. We believe the investment is beneficial to the smooth promotion
2,439 of the Mitsui Fudosan Group’s business activities

Yes

5,397,965 Sumitomo Mitsui Construction Co., Ltd. is the supplier of new construction
including the sequence SUIDOBASHI in Chiyoda Ward, Tokyo. We believe theinvestment is beneficial to the smooth promotion of the Mitsui Fudosan Group’s
2,782 business activities.

Yes

Integrated Report 2022

126

Data Section

Stock nameCurrent fiscal year

Previous fiscal year

Number ofshares held

Number ofshares held

Book value of shares(Millions of yen)Book value of shares(Millions of yen)

560,541
The Japan Steel Works, LTD.
2,141
1,570,800
Credit Saison Co., Ltd.
2,046
Mitsui O.S.K. Lines, Ltd.

IHI Corporation

150,087
1,539
513,200
1,513
1,088,000

Seibu Holdings Inc.

BIPROGY Inc.

1,383
425,300
1,324
4,229,190

Mebuki Financial Group, Inc.
1,082

490,400
Nippon Steel Corporation
1,064

The Gunma Bank, Ltd.

SHIN NIPPON AIR TECHNOLOGIESCO., LTD.

2,832,904
1,002
500,648965
269,261

Denka Company Limited
915

757,200
FUJI MEDIA HOLDINGS, INC.
888
384,400
Taiheiyo Cement Corporation
776

Nakamuraya Co., Ltd.

OHBA CO., LTD.

Heiwa Real Estate Co., Ltd.

180,000
565
727,050552
121,400
480
848,245

Concordia Financial Group, Ltd.
388

127 Integrated Report 2022

Purpose of shareholding, quantitative effects of shareholding, and reasons forincrease in number of shares
See Note 1

Holdings by the companyof the Company’s shares

560,541 The Japan Steel Works, LTD. is a tenant in properties including GATE CITYOHSAKI in Shinagawa Ward, Tokyo. We believe the investment is beneficial to1,486 the leasing business of the Mitsui Fudosan Group.

Yes

1,570,800 Credit Saison Co., Ltd. issues the Mitsui Shopping Park card. We believe theinvestment is beneficial to the smooth promotion of our Group’s business
2,218 activities.

Yes

150,087 Mitsui O.S.K. Lines, Ltd. is a tenant in Nagoya Mitsui Main Building in Nagoya
City, Aichi Prefecture. We believe the investment is beneficial to the leasing
558 business of the Mitsui Fudosan Group.

Yes

513,200 IHI Corporation is a co-operator of Toyosu Bayside Cross in Koto Ward, Tokyo.
We believe the investment is beneficial to the creation of business opportunities
1,125 for the Mitsui Fudosan Group.

Yes

1,088,000 Seibu Holdings Inc.’s consolidated subsidiary SEIBU REALTY SOLUTIONS INC. isa co-operator of MITSUI OUTLET PARK SHIGA RYUO in Ryuo Town, Gamo
District, Shiga Prefecture. We believe the investment is beneficial to the creation
1,385
of business opportunities for the Mitsui Fudosan Group.

Seiyoken KK

SANKI ENGINEERING CO., LTD.

The Hachijuni Bank, Ltd.

The Company has borrowings from Mebuki Financial Group, Inc.’s consolidated
4,229,190 subsidiary Joyo Bank, Ltd. We believe that the investment is beneficial to thestable procurement of funds by the Mitsui Fudosan Group.
Mebuki Financial Group, Inc.’s consolidated subsidiary Joyo Bank, Ltd. is a
1,104 tenant of Mitsui Building No. 2 in Chuo Ward, Tokyo. We believe the investment
is beneficial to the leasing business of the Mitsui Fudosan Group.

No
However, Mebuki
Financial Group, Inc.’s
consolidated subsidiary
Joyo Bank, Ltd. holds
shares.

No500,648 SHIN NIPPON AIR TECHNOLOGIES CO., LTD. is a tenant in properties including
Hamacho Center Building in Chuo Ward, Tokyo. We believe the investment is
1,206 beneficial to the leasing business of the Mitsui Fudosan Group.

Yes

306
175,000
244
577,500
235

Yes

Mitsui E&S Holdings Co., Ltd.
190

KDDI Corporation

No
However, Concordia
Financial Group, Ltd.’s
consolidated subsidiary
The Bank of Yokohama,Ltd. holds shares.

JAPAN PULP AND PAPER COMPANY
LIMITEDYes

Mitsui E&S Holdings Co., Ltd. is a tenant in properties including Hamarikyu
520,957 Mitsui Building in Chuo Ward, Tokyo. We believe the investment is beneficial to
the leasing business of the Mitsui Fudosan Group.
Mitsui E&S Holdings Co., Ltd. is a co-operator of the Mitsui Fudosan Oita Solar
279 Power Plant in Oita City, Oita Prefecture. We believe the investment is beneficial
to the creation of business opportunities for the Mitsui Fudosan Group.

Yes

Yes

62,929 Mitsui-Soko Holdings Co., Ltd.’s consolidated subsidiary MITSUI-SOKO
LOGISTICS Co., Ltd. is a tenant in properties including Mitsui Fudosan Logistics
Park Hiratsuka II in Hiratsuka City, Kanagawa Prefecture. We believe the139 investment is beneficial to the leasing business of the Mitsui Fudosan Group.

Yes

20,160 The Mitsui Fudosan Group performs contracted leasing operation andmanagement work for the leased residences held by Mitsui DM Sugar Holdings
Co., Ltd. We believe that the investment is beneficial to the creation of business
40 opportunities for the Mitsui Fudosan Group.

No

32,750 The Company has borrowings from The Yamanashi Chuo Bank, Ltd. We believethat the investment is beneficial to the stable procurement of funds by the
30 Mitsui Fudosan Group.

Yes

43,172 OSAKI ELECTRIC CO., LTD. is a co-operator of Mitsui Garden Hotel Gotanda in
Shinagawa Ward, Tokyo. We believe the investment is beneficial to the creation
26 of business opportunities for the Mitsui Fudosan Group.

No105,512 The Company has borrowings from The Nanto Bank, Ltd. We believe that theinvestment is beneficial to the stable procurement of funds by the Mitsui
11 Fudosan Group.

Yes

—

5,876

(Previous fiscal year)
JAPAN PULP AND PAPER COMPANY LIMITED is a co-operator of OVOL
Nihonbashi Building in Chuo Ward, Tokyo. We believe the investment is
22 beneficial to the creation of business opportunities for the Mitsui FudosanGroup.

No

121

38

The Nanto Bank, Ltd.

841,000 ONWARD HOLDINGS CO., Ltd.’s consolidated subsidiary ONWARD KASHIYAMA
CO. LTD. is a tenant in properties including LaLaport TOKYO-BAY located in
Funabashi City, Chiba Prefecture. We believe the investment is beneficial to the
255 leasing business of the Mitsui Fudosan Group.

200,000 Oji Holdings Corporation’s consolidated subsidiary Oji Paper Co., Ltd. is a tenant
in Hakata Mitsui Building No. 2 in Fukuoka City, Fukuoka Prefecture. We believe
the investment is beneficial to the leasing business of the Mitsui Fudosan
143
Group.

110

OSAKI ELECTRIC CO., LTD.

No
However, Mitsubishi UFJ
Financial Group, Inc.’s
consolidated subsidiary
MUFG Bank, Ltd. holds
shares.

No

148

Mitsui-Soko Holdings Co., Ltd.

Yes

The Company has borrowings from Mitsubishi UFJ Financial Group, Inc.’s
consolidated subsidiary MUFG Bank, Ltd. We believe that the investment isbeneficial to the stable procurement of funds by the Mitsui Fudosan Group.

37,200 KDDI Corporation is a tenant in properties including Garden Air Tower in Chiyoda
Ward, Tokyo. We believe the investment is beneficial to the leasing business of
128 the Mitsui Fudosan Group.

37,200200,000
Oji Holdings Corporation

The Yamanashi Chuo Bank, Ltd.

Yes

Yes

No
However, Isetan
Mitsukoshi Holdings
Ltd.’s consolidated
subsidiary Isetan
Mitsukoshi Ltd. holds
shares.

Isetan Mitsukoshi Holdings Ltd.

Yes

121,400 Heiwa Real Estate Co., Ltd. is a leaseholder of land in Chuo Ward, Tokyo. We
believe the investment is beneficial to the smooth promotion of the Mitsui
421 Fudosan Group’s business activities.

577,500 The Company has borrowings from The Hachijuni Bank, Ltd. We believe that theinvestment is beneficial to the stable procurement of funds by the Mitsui
230 Fudosan Group.

Isetan Mitsukoshi Holdings Ltd.’s consolidated subsidiary Isetan Mitsukoshi Ltd.
is a tenant in properties including TOKYO MIDTOWN HIBIYA in Chiyoda Ward,
Tokyo. We believe the investment is beneficial to the leasing business of the
138 Mitsui Fudosan Group.

20,160

Yes

Yes

183

Mitsui DM Sugar Holdings Co., Ltd.

Yes

175,000 SANKI ENGINEERING CO., LTD. is a tenant in properties including St. Luke’s
Tower in Chuo Ward, Tokyo. We believe the investment is beneficial to the
252 leasing business of the Mitsui Fudosan Group.

231

520,957

Holdings by the companyof the Company’s sharesNo

304,000

215

Purpose of shareholding, quantitative effects of shareholding, and reasons forincrease in number of shares
See Note 1

417,500 Seiyoken KK is a co-operator of Mitsui Garden Hotel Roppongi Premier in Minato
Ward, Tokyo. We believe the investment is beneficial to the creation of business
376 opportunities for the Mitsui Fudosan Group.

304,000

44,029727,050 OHBA CO., LTD. is the supplier of surveying and design services for the Group’s
development business, etc. We believe the investment is beneficial to the574 smooth promotion of the Mitsui Fudosan Group’s business activities.

848,245 The Company has borrowings from Concordia Financial Group, Ltd.’s
consolidated subsidiary The Bank of Yokohama, Ltd. We believe that theinvestment is beneficial to the stable procurement of funds by the Mitsui
387 Fudosan Group.

417,500

164

Yes

180,000 Nakamuraya Co., Ltd. is a co-operator of the Shinjuku Nakamuraya Building inShinjuku Ward, Tokyo. We believe the investment is beneficial to the creation of
736 business opportunities for the Mitsui Fudosan Group.

Book value of shares(Millions of yen)

170,0112,832,904 The Company has borrowings from The Gunma Bank, Ltd. We believe that theinvestment is beneficial to the stable procurement of funds by the Mitsui
1,114 Fudosan Group.

Taiheiyo Cement Corporation is a tenant in properties including BUNKYO
384,400 GARDEN GATE TOWER in Bunkyo Ward, Tokyo. We believe the investment isbeneficial to the leasing business of the Mitsui Fudosan Group.
Taiheiyo Cement Corporation is a co-operator of the Mitsui Fudosan SanyoOnoda Solar Power Plant located in Sanyo-Onoda City, Yamaguchi Prefecture.
1,088 We believe the investment is beneficial to the creation of business opportunities
for the Mitsui Fudosan Group.

Book value of shares(Millions of yen)

841,000

490,400

757,200 FUJI MEDIA HOLDINGS, INC.’s consolidated subsidiary Sankei Kaikan Co., Ltd. isa tenant in properties including St. Luke’s Tower located in Chuo Ward, Tokyo.
We believe the investment is beneficial to the leasing business of the Mitsui
1,064 Fudosan Group.

Number ofshares held

ONWARD HOLDINGS CO., Ltd.
No

Denka Company Limited is a tenant in properties including Nihonbashi Mitsui269,261 Tower in Chuo Ward, Tokyo. We believe the investment is beneficial to theleasing business of the Mitsui Fudosan Group.
Denka Company Limited is the co-operator of Mitsui Fudosan Tomakomai Solar
Power Plant in Tomakomai City, Hokkaido. We believe the investment is
1,165
beneficial to the creation of business opportunities for the Mitsui FudosanGroup.

Previous fiscal year

Number ofshares held

Mitsubishi UFJ Financial Group, Inc.

No

425,300 BIPROGY Inc. is a tenant in properties including Toyosu ON Building in Koto
Ward, Tokyo. We believe the investment is beneficial to the leasing business of
1,407 the Mitsui Fudosan Group.

Nippon Steel Corporation’s consolidated subsidiary NIPPON STEEL ENGINEERING
CO., LTD. is the supplier of new construction for properties including Mitsui
Fudosan Logistics Park Ebina I located in Ebina City, Kanagawa Prefecture. We
believe the investment is beneficial to the smooth promotion of the Mitsui
880
Fudosan Group’s business activities.

Stock nameCurrent fiscal year

32,75031
43,17220
5,512—

170,011

Notes: 1. Mitsui Fudosan reviews the propriety of its shareholdings by confirming the purpose of each individual stock based on the quantitative feasibility of theholding and our relationship with the company in question. We are unable to disclose details regarding these relationships for reasons of confidentiality.
Additionally, under our policy of reducing shareholdings, stocks that are deemed to be beneficial but the benefits of which are relatively small compared toother holdings will be considered for sale.
2. The symbol “—” indicates that the Company does not hold the shares in question.

Integrated Report 2022

128

Data Section

Organization Chart

Shareholder Returns
Shareholdings
The Deemed
Mitsui FudosanGroup has long considered ways to upgrade and¥55
expand the return of profits to shareholders with the aim of enhancing
Current fiscal
year recovery
Previous
fiscalyear
corporate and shareholder value. In addition
to theof itsmainstay
Own shares
being
repurchased
Number of shares
held Numberof shares
Leasing, Property Sales, and Managementbusinesses
in thefiscalheld
year Purpose of shareholding,quantitative
effectsof shareholding, and reasons for
Holdings by the company
1
See
Note 1 in its
under review, Stockthe name
Group is confidentSee
ofNotea sustainableupswing
increase in numberof shares
From February
7, 2022,
to March 3, 2022of the¥15.0
Company’sbillion
shares
See
Note
3
Book
value
of
shares
Book
value
of
sharesbusiness performance in the next fiscal year and beyond. Acknowledging
From May 16, 2022, to March 31, 2023 (Planned) ¥15.0 billion(Millions of yen)
(Millions of yen)
its ability to undertake investments for future while at the same time stably
See Note 2
See Note 2(Planned maximum)
and continuously enhancing shareholder returns, the Group has decided to
1,736,400
1,736,400
increase its total shareholder return ratio from around 35% to around 45%.
Oriental Land Co., Ltd.

40,822

28,890

Annual dividend per share for fiscal 2021

We have the authority
direct the exercise
of votingrightsthese shares.
Totaltoshareholder
returnratio
offorprofit

attributable to owners of parent

No

Division
Head Office
Department

Shareholders’Meeting(also Office, Branch Office, and Institute)

Department

2. The book value of deemed shareholdings is calculated by multiplying the market value of the shareholdings on the last day of the fiscal year by the numberof shares subject to the exercise of voting rights.

Board of Directors

Corporate Auditor

President andChief Executive Officer

Architectural andConstruction Services
Department

Space &
Environment
Institute

CARE DESIGN
Department

Planning andResearch
Department

Real Estate
Investment
Research Institute

Appraisal
Department

3. Details of the rights held by the Company are noted in the purpose of shareholding.

4. When selecting
the stocks withhighest bookvalue onfinancial statements,
Outlook
for Fiscal
2022
(Year
EndingMarchspecial
31, investment2023) shares and deemed shareholdings are not combined withshares held.

While
theShares
impact of COVID-19
yet topurpose
dissipate, socialand economic income(C)
held foris theof investment
Segment Forecasts
activities are progressing toward business as usual amid efforts tocontrol the pandemic.
Current fiscal year
Previous fiscal year
Type
Taking into considerationthese prevailing trends, revenue from
Leasing: Reflecting such factors as contributions
revenue andBook value of sharesBook value ofto
sharesNumber of stocks
Number of stocks(Millions of yen)
(Millionsof yen) Yards, andoperations, operating income, ordinary income,and profit attributableearnings from TOKYO MIDTOWN YAESU, 50
Hudsonto owners
parent are all projected to reach record highs—in the fiscal
LaLaport
for completion during
Unlistedof
shares— FUKUOKA, which are scheduled— the—year ending March 31, 2023. In addition to the recovery in operatingnext fiscal year, the recovery in sales in retail facilities and an increase
Other holdings
1
215
95
1
results
particularly in the retail facility category of the Leasing
segment,
in sales in the Work Styling business, revenue from operations andthe hotel and resort category of the Other segment, as well as Tokyo
operating income are expected to increase ¥51.8 billion and ¥22.0
Dome Group, it is expected that this year-on-year improvement willbillion, respectively, to reach record highs in the fiscal year endinglargely be due to newly completed properties that will be used as
March 31, 2023.
Current fiscal yearProperty Sales: Taking into consideration increases in unit prices
offices and retail facilities in the Leasing segment and successful
efforts to captureTypenew demand throughmeasuresTotal valueof dividends aimed
received at addressTotal gain or loss on
saleproperty andTotalimprovements
valuation gain or lossin profit margins in the Property Sales
perof yen) and earnings. (Millions of yen)
(Millions of yen)ing the COVID-19 pandemic contributing(Millions
to revenue
to Individuals (Domestic)
category and the continuous replacement ofBasedonsharesthis, in fiscal 2022, Mitsui Fudosan is expected
Unlisted— to report——assets in the Property Sales to Investors
category, overall revenue andrevenue from operations of ¥2,200.0 billion, up ¥99.1 billion year on
earnings
intheProperty
Sales
segment
are anticipated to increase
Other holdings——
187
year. Operating income is estimated to increase by ¥55.0 billion to¥6.1 billion and ¥1.6 billion, respectively, reaching record highs.
¥300.0billionandordinary
income thatis estimatedtodoesincrease
bythe
¥35.0
Management: Carrying on from the fiscal year under review, trends
Notes:
1. Thesymbol“—” indicates
the Company
not holdshares in question.
billion to ¥260.0
Profitattributable
to incomeownersnotedof parentis acquiredinas in-kindthe Brokerage
fora venture
Individuals
Repark(car park
2. Sharesbillion.
held for the
purposeof investment
above weredividends from
capital andfirm that
the Company
has an leasing)equity stake
forecast to increaseby in.
¥13.0 billion to ¥190.0 billion.
businesses are expected to remain firm. Owing to these and other
While some of the effects of the pandemic are projected to linger
factors, revenue from operations and operating income are projected
impacting hotels, resorts, and Tokyo Dome Group, the Group will
to decrease ¥9.3 billion and ¥0.2 billion, respectively, coming in atcontinue toward a performance recovery by improving profitability andaround the same level as the fiscal year ended March 31, 2022.
reducing costs on an ongoing basis.
Other: The Other segment is anticipated to make a return to profit
with increases in both revenue from operations and operating incomeof ¥50.5 billion and ¥32.6 billion, respectively, in the fiscal year ending
March 31, 2023. In addition to the recovery from the fiscal year underreview, this is mainly due to the promotion of measures aimed at
capturing new demand.

Nomination Advisory Committee
Executive Management
Committee

Corporate Auditor’s
Department

46.6%

Notes: 1. Shares for which we have the authority to exercise voting rights are noted.

Compensation Advisory Committee

Board ofCorporate Auditors

DX DivisionDX
Department (II)DX
Department (I)Sustainability Promotion
Division

Sustainability
Promotion
Department

Corporate
Planning
Department

Accounting
and Finance
Department

IFRS
Preparation
Department

Human
Resources
Development
Department

Investor
Relations
Department

Taking into consideration a comprehensive range of factors including
the outlook for fiscal 2022 and the aforementioned shareholder
returns policy, the Company plans to pay a cash dividend of ¥60 per
share (including an interim dividend of ¥30 per share) for the fiscal year
ending March 31, 2023.

Executive
Secretarial
Department

GeneralAdministration
Department

Internal Audit
Department

Environment andEnergy Service
Department

Solution Partner Division

Solution Services
Department

Private Consulting
Department

Strategy Planning and
Administration Department

Industry-Academia
Collaboration
Department

Tokyo Dome
Department

Advanced
Technology Fields
Collaboration
Department

Public Sector
Department

Homes and Lifestyle
Promotion Division

Office Building Division

Solution Planning Department

Project Planning
Department

Corporate
Communications
Department

D&I Promotion
Department

Operation andManagement
Department (II)Operation andManagement
Department (I)Work Styling ProjectManagement
Department

Tokyo Chuo
OfficeRetail Properties Division
Strategy Planning and
Administration Department

Strategy Planning and
Administration Department

Tenant Relations andBusiness Development
Department (I)Leasing andMarketing
Department (I)Office Building
Development
Department (I)Office Building
Project Planning
Department

Strategy Planning
Department

Leasing andMarketing
Department

Office Building
Development
Department (II)Marketing
Planning
Department

Tenant Relations andBusiness Development
Department

Planning andMarketing
Department

Office Building
Development
Department (III)Tenant Relations andBusiness Development
Department (II)Leasing andMarketing
Department (II)Tenant Relations andBusiness Development
Department

Leasing andMarketing
Department

Kasumigaseki Tenant
Relations and Business
Development Department
Retail Properties
Operation
Department

Property
Management
Department

Retail Properties
Leasing and Marketing
Department (I)Regional
Development
Department

Urban
Development
Department

Shinjuku Tenant
Relations and Business
Development Department

Retail Properties
Leasing and Marketing
Department (II)&mall Project
Planning
Department

Hotels and Resorts Division

Retail Properties
Leasing and Marketing
Department (III)Strategy Planning and
Administration Department

Logistics Properties Business
DivisionInternational Division
Strategy Planning
Department

Strategy Planning and
Administration Department

Dividends

Personnel
Department

Logistics Properties
Operation
Department

GotandaProject
Department

Logistics Properties
Leasing andMarketing Department

Development
Planning
Department

Logistics Properties
Development
Department

Kashiwanoha Urban
Planning and Development
Department

Logistics Properties
Project Planning
Department

International
Department (III)Tokyo Midtown
Development
Department

Nihonbashi Urban
Planning andDevelopment Department

Toyosu-Project
Development
Planning Department

International
Department (II)Yaesu Urban
Planning
Department

International
Department (I)Hibiya Urban Planningand Development
Department

Hotel and Resort
Development
Department (I)Hotel and Resort
Development
Department (I)Hotel and Resort
Marketing
Department
Hotel and Resort
Development
Department (II)Hotel and Resort
Development
Department (II)Hotel and Resort
Marketing
Department

VentureCo-creation
Department

Life Science
Innovation
Department

BusinessInnovation Planning
Department

AffiliatedBusiness
Department

Tokyo Midtown Hibiya
Development
Department

Kannai-Project
Development
Planning
Department

Uchisaiwaicho Project
Department

KyushuBranchChugoku
BranchKyoto Branch

129 Integrated Report 2022

Kansai Head
OfficeDevelopment
Department (II)Chubu Branch

Development
Department (I)Administration
Department

Yokohama
BranchChiba Branch

Tohoku Branch

Hokkaido
BranchNote: Information current as of April 1, 2022

Integrated Report 2022

130

Data Section

Corporate Data/Shareholders’ Information (As of March 31, 2022)

The Mitsui Fudosan Group supports and has signed the United Nations Global Compact and other international initiatives that

Corporate Dataalign with our philosophy and goals.

Trade Name

Mitsui Fudosan Co., Ltd.

Head Office

1-1 Nihonbashi-Muromachi 2-chome,

Authorized: 3,290,000,000

Number of Shares

Issued and outstanding: 959,474,447

Chuo-ku, Tokyo 103-0022, Japan

Number of Shareholders 38,787

TEL. (03) 3246-3131

Transfer Agent

Sumitomo Mitsui Trust Bank, Limited

Date of Establishment July 15, 1941

Number of Employees

1,898 (consolidated 24,408)

Capital¥340,162 million

Websitehttps://www.mitsuifudosan.co.jp/english/

Listing

Tokyo Stock Exchange (Ticker: 8801)

Shareholder Composition (Shareholding Ratio)
Individuals, other

International Initiatives That We Support

3.01%

Other Japanese Companies

Financial Institutions

Sustainable Development Goals (SDGs)
United Nations Guiding Principles on Businessand Human Rights
Task Force on Climate-related Financial Disclosures (TCFD)

Universal Declaration of Human Rights
Japan Business Federation Charter ofCorporate Behavior
RE100

External Assessments

4.15%

Securities Companies

United Nations Global Compact
ILO Declaration on Fundamental Principles
and Rights at WorkOECD Guidelines for Multinational Enterprises

Treasury Stock

Status of Inclusion in ESG Indexes (As of August 31, 2022)

0.93%

7.70%

37.28%

Non-Japanese

46.92%

Major Shareholders
Number of shares held(Thousand)

Percentage of total
shares issued (%)

The Master Trust Bank of Japan, Ltd. (Trust account)

179,321

18.87

Custody Bank of Japan, Ltd. (Trust account)

72,261

7.60

SSBTC CLIENT OMNIBUS ACCOUNT(Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited
Tokyo Branch Custody Service)

22,904

2.41

STATE STREET BANK WEST CLIENT - TREATY 505234(Standing proxy: Mizuho Bank, Ltd., Settlement Sales Department)

16,801

1.77

CB London Stichting Pensioenfonds Zorg En Welzijn(Standing Proxy: Citibank, N.A., Tokyo Branch)

13,864

1.46

KAJIMA CORPORATION

13,362

1.41

Sumitomo Mitsui Banking Corporation

12,982

1.37

STATE STREET BANK AND TRUST CLIENT OMNIBUS ACCOUNT OM02 505002(Standing proxy: Mizuho Bank, Ltd., Settlement Sales Department)

12,421

1.31

JP MORGAN CHASE BANK 385781(Standing proxy: Mizuho Bank, Ltd., Settlement Sales Department)

12,326

1.30

NSL DTT CLIENT ACCOUNT 1(Standing Proxy: Nomura Securities Co., Ltd.)

11,409

1.20

Total

367,657

38.68

Shareholder

THE INCLUSION OF Mitsui Fudosan Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION OF Mitsui Fudosan Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMESAND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Sustainability-Related Assessments and Certifications (As of August 31, 2022)

Note: Platinum Kurumin certification was acquired by Mitsui Fudosan Residential Co., Ltd.

131 Integrated Report 2022

Integrated Report 2022

132