Otemachi Park Building, 1-1, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8133, Japan
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2019/08/23

Integrated Report2022

Building On
Our Track Record
for Future GrowthP“ A Love for People
A Love for the City ”
Forever Taking On New Challenges—The Mitsubishi Estate GroupThe Spirit of Mitsubishi: Three Principles“Shoki Hoko”“Shoji Komei”

Corporate Responsibility to Society
Strive to enrich society, both materiallyand spiritually, while contributing
toward the preservation of
the global environment.

Integrity and Fairness
Maintain principles of transparency
and openness,
conducting business withintegrity and fairness.

“Ritsugyo Boeki”

Global Understanding through Business
Expand business,based on an all-encompassing
global perspective.

The Mission of the Mitsubishi Estate GroupWe contribute to society through urban development.
By building attractive, environmentally sound communities where people can live,
work, and relax with contentment, we contribute to the creation of a truly meaningful society.

The Mitsubishi Estate Group Code of Corporate Conduct

In order to carry out the Group’s Mission,
we pledge to observe the following Code of Conduct:

1

2

3

We will act with integrity.

We will strive to earn
the trust of our clients.

We will strive to createa vibrant workplace.

We will approach all objectives fromour clients’ point of view, providing
safe and reliable products andservices, and make information
available as appropriate.

While aiming at personal growth, wewill respect the human rights anddiversity of opinions of others andincrease our creativity and professionalism,
while displaying ourcollective strengths as a team.

We will base our conduct on laws
and ethics and always reflect withhumility upon our behavior, valuing
our communication with society andplacing priority in our corporate
activities on earning trust throughfairness and transparency.

For details on the Mitsubishi Estate Group Guidelines for Conduct:
https://www.mec.co.jp/e/company/charter/index.html(Formulated December 1, 1997; revised on August 1, 2002, January 1, 2006, and April 1, 2018)2	The Mitsubishi Estate Group’s History
and Achievements
4

Marunouchi Today

6

Promoting Marunouchi NEXT Stage

8

Expanding into Various Domains

10

Mitsubishi Estate’s Strengths



P 56

Sustainability (ESG) Section

56	Sustainability-Related Policies and KPIs /Sustainability Frameworks / Monitoring Frameworks/ History of Sustainability Committee Meetings /External Evaluations of ESG Performance58

1 Environment

61

TCFD

62

2 Diversity & Inclusion

68

3 Innovation

69

4 Resilience

P 12

Mitsubishi Estate’s Value Creation Model70	In Focus: Realizing Sustainable Actions in
the Otemachi, Marunouchi, and Yurakucho Areas

P 14

President’s Message

72

P 20

The Mitsubishi Estate Group’s Strategies

20

Long-Term Management Plan 2030

22

Overview of Sustainability (ESG) Initiatives

24	Message from the Corporate Officer in Charge of Finance& Accounting and Corporate Communications
28	Progress of Long-Term Management Plan 2030
32		Special Feature 1 Domestic Asset Business:

P 73

SASB

Corporate Governance73

Message from the Chairperson of the Board

74

Corporate Governance System

80	Evaluation of the Effectiveness of the Board of Directors
82

Remuneration

86	Dialogues with Shareholders and Investors(ESG Meetings)

Completion of Tokiwabashi Tower

87

34
		

Special Feature 2 International Asset Business:

88	Directors

Shares Held for Strategic Purposes

Development of Logistics Facilities in the United States36		Special Feature 3 Non-Asset Business:
Entry into the 5G Infrastructure-Sharing Business89	Corporate Executive Officers, Executive Officers, andGroup Executive Officers

38		Special Feature 4 Sustainability:
Toward the Achievement of a Decarbonized Society

P 40

Business Review

90

Message from an Outside Director

92

Risk Management

P 95
95

Financial Section
Japan’s Real Estate Market

41

Business Segments

42

Commercial Property Business96	Eleven-Year Summary of Selected Financial Data
(Consolidated)		

42

Office Building Business98

Selected Financial Data		

44

Retail Facility Business / Outlet Mall Business

102

Matters Related to Rental Properties		

45

Logistics Facility Business

103

Status of Shareholdings		

46Hotel Business		

47

Airport Operation Business104	Targets and Results of the Key Themes and Major
Initiatives Laid Out in Mitsubishi Estate Group 2030
Goals for the SDGs

48

Residential Business

50

International Business

52

Investment Management Business

53	Architectural Design & Engineering Business andReal Estate Services Business
54	Business Development, Client Relations &Solutions Group
55

Innovation and Business Transformation Group

P106

Corporate Data

106

Principal Mitsubishi Estate Group Companies

108

Corporate History

109

Organization

110

Corporate Information

111

About Our Website

A Word about Integrated Report 2022
We adopted this integrated report format starting from FY2019, having published annual reports through to FY2018. With this integrated report, we have expanded coverage of nonfinancial information, centering on environmental, social, and governance (ESG) topics, compared with prior annual reports. In doing so, we aim to increase readers’ awareness of ourefforts to raise the corporate value of the Mitsubishi Estate Group from a medium- to long-term perspective. We hope that this report promotes a deeper understanding of the Groupamong all of our stakeholders, including shareholders and investors.
Definition of Term
“FY2022” refers to the Group’s fiscal year ended March 31, 2022, and other fiscal years are referred to in a corresponding manner.
Caution Concerning Forward-Looking Statements
This integrated report contains forward-looking statements concerning Mitsubishi Estate Co., Ltd., and its future strategies and earnings outlook, including forecasts, plans, and decisions based on information available at the time of publication. As with any forecast, plan, or decision, forward-looking statements are inherently susceptible to potential risks, uncertainties, and assumptions. The Company’s actual results may therefore vary materially from those expressed or implied in its forward-looking statements.

1

The Mitsubishi Estate Group’s History and Achievements

The Mitsubishi Estate Group’s History and Achievements

The Development of Marunouchi
over More Than 130 Years

Achievements

The Mitsubishi Estate Group has overseen the development of the Marunouchi area for more than 130 years, evolving it into

Marunouchi NEXT Stage

Japan’s preeminent business center. In the process, we have accumulated unique knowledge and expertise in urban development.

Transforming Marunouchi into an area that continuously
creates new value

We are actively promoting our Marunouchi NEXT Stage strategy with the aim of establishing Marunouchi as a “Co-creation
platform for innovation through companies, employees, and visitors.”

Positioning urban development from 2020 onward as part of Marunouchi
NEXT Stage, we will promote urban development that generates improvements in people’s quality of life and spurs the discovery of and solutions tosocial issues through the emergence of innovation and strengthening of ourdigital foundations. Based on the theme of “Marunouchi Re-Design,” we will
aim to establish the “co-creation platform for innovation through companies,
employees, and visitors.”

2020–
1890

Starting from Scratch
Purchase of Marunouchi land and vision of a major
business center

Tokiwabashi Tower

Uchikanda 1-chome Project

Torch Tower

The history of Marunouchi’s development began in 1890 when Yanosuke
Iwasaki, the first president of Mitsubishi Company, purchased the area at therequest of the Meiji government of Japan. At the time, the area was an
expanse of flat, grassy fields that became known as Mitsubishigahara, or
Mitsubishi Fields. Iwasaki’s reasoning behind this acquisition was his belief
that for Japan to become a modern nation, the country needed a businesscenter to rival that of New York or London.

M A R U N O U C H I
MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Photo by Kawasumi and Kenji Kobayashi Photo Studio

1890s–1950s

Third Phase of Development

First Phase of Development

Creating the world’s most interaction-inspiring neighborhood

Dawning of a full-scale business center development
1995–2019

The construction of the area’s first modern office building, Mitsubishi
Ichigokan, was completed in 1894. Soon after, three-story redbrick officebuildings began springing up, resulting in the area becoming known as the“London Block.”

1960s–1980s

Following the announcement of the reconstruction of the former Marunouchi
Building in 1995, the Company transformed the Marunouchi area—which had
up until then been purely a business district—into a space with a vibrant andbustling atmosphere, based on the concept of creating the world’s mostinteraction-inspiring neighborhood. Aiming to make redevelopment of thearea broader and more comprehensive, we expanded that concept toOtemachi and Yurakucho from 2008. We also strengthened the international
competitiveness of Marunouchi by establishing a financial business centerand a greater amenity infrastructure. Furthermore, we worked to give thearea a fresh appeal based on a new sense of values by adding new functionality, such as the development of cultural and artistic functions, including a
museum, and the promotion of environment-friendly initiatives.
Marunouchi Bldg.

Second Phase of Development
An abundance of large-capacity office buildings in a period of
rapid economic growth
As Japan entered an era of high economic growth, there was a sharp
increase in demand for office space. Through the Marunouchi remodelingplan that began in 1959, the area was rebuilt with large-scale office buildings
providing a considerable supply of highly integrated office space.

2

Marunouchi Park Building &Mitsubishi Ichigokan

Marunouchi Nijubashi Bldg

History3

Yurakucho

Marunouchi

OtemachiN

Kokyo (Imperial Palace) Gaien National Garden
Palace HotelTokyo

Otemon Tower •ENEOS Bldg.

PalaceBldg.

NIKKEI Bldg.

MITSUI & CO. Building

OtemachiPark Bldg.

uc

Yurakucho
Center Building(Yurakucho Marion)

Yusen Bldg.

(Annex)Marunouchi Naka-dori Ave.

Marunouchi Park Bldg.

Marunouchi
2-chome Bldg.

Shin-Tokyo Bldg.

Mitsubishi Ichigokan
MuseumOtemachi First Square

Mizuho Marunouchi
Marunouchi Terrace
Tower

The Industry Clubof Japan and
Mitsubishi UFJ
Trust andBanking Bldg.

Mitsubishi Bldg.

St
at

Marunouchi
Eiraku Bldg.

Otemachi Tower

HOSHINOYA Tokyo
Otemachi Nak

a-dori Ave.

OTEMACHI FINANCIAL CITY
North Tower
South Tower

Tokyo
SankeiBldg.

, Marunouchi Lin

Tokyo Station, Marunouchi Line

Daimyo-koji Ave.

Otemachi Station

Uchikanda
1-chome Project(Planned completion in 2025)e

NTT Communications
Otemachi Bldg.
Marunouchi Center Bldg.
MUFG Bank
Head Office

Tokyo International Forumion

Yurakucho Ekimae Bldg.
(ITOCiA)(Owned by a
Mitsubishi Estate
consolidated subsidiary)

Otemachi
Bldg.

Otemachi Naka-dori Ave.

Marunouchi Naka-dori Ave.

Yomiuri Kaikan
BIC Cameraho

Yomiuri
Shimbun
Office Bldg.

ad eGinkokaikan

Shin-Marunouchi
Bldg.

Marunouchi Bldg.

Shin-Nisseki
Bldg.

Marunouchi 1st St.

Marunouchi
Naka-dori Bldg.

Mitsubishi
Corp.
Head Office

OTEMACHIFINANCIAL CITY
GRAND CUBE

KDDI
Otemachi Bldg.

SMBC East Tower
Tokyo
Kaijo
NichidoBldg.

Gyoko-dori Ave.

Marunouchi
Mitsui Bldg.

Marunouchi 2nd St.

Kishimoto
Bldg.

Chiyoda LineO te mac hi Rive rsid e Pro me n

Shin-Kokusai
Bldg.

Meiji Yasuda Seimei Bldg.

Marunouchi 3rd St.

Marunouchi
Nijubashi Bldg.
Babasaki-dori Ave.

Marunouchi 6th St.

ShinYurakucho
Bldg.

Otemachi Station,

Otemachi Station, Tozai Lineak

Yurakucho
Bldg.

Meiji Seimei Kan
Bldg.

Keidanren
KaikanOtemachi Station, Toei Mita Line

Hibiya-dori Ave.

Nihon Seimei
Marunouchi Bldg.
JP TOWER

Tokyo Station, JR Keiyo LineYur

Marunouchi 4th St.

Kokusai Bldg.

SanshiKaikan Bldg.

Marunouchi 7th St.

Yurakucho
Denki Bldg.

Marunouchi 5th St.

DN
Tower 21Imperial
Theater

Otemachi One Tower

Ote Center Bldg.

Nijubashimae Station, Chiyoda Line

Yurakucho Station, Yurakucho Line

e
Lin
iya

Togyo KaikanNippon Broadcasting
System Bldg.

iya

The
Peninsula
Tokyo

Hib

The Mitsubishi Estate Group’s History and Achievements

Sta
t

ion
, Hib

Toho
Twin Tower
Bldg.

Marunouchi
Police Sta.
HibiyaSankei Bldg.

SMBC
Head Office
Bldg.

n LineHibiya Station, Toei Mita Line

HibiyaMarine Bldg.

Nippon Life
Marunouchi
Garden Towertion, HanzomoHi
C h bi y a S
i yo t ad a t io
Lin n,
eTokyo Midtown
HibiyaWadakura-bori
Moat

Babasaki-bori Moat

Otemachi Sta

Hibiya-bori Moat

JA Bldg.

Tokyo Kotsu
Kaikan Bldg.
(Owned by a
Mitsubishi Estate
consolidated
subsidiary)

Marunouchi
South Exit

Marunouchi
Central Exit

Tokyo Bldg.

Shin-Marunouchi
Center Bldg.

Marunouchi Oazo

Marunouchi
North Exit

Marunouchi Marunouchi
Hotel
Kitaguchi Bldg.

Otemachi Nomura Bldg.

Chiyoda Ward
Sports Center
Otemachi PLACE
WEST TOWER
NTT Communications
Otemachi Bldg. (Annex)
Urbannet
Otemachi Bldg.

Shin-Otemachi
Bldg.
NTT
Marunouchi
Bldg.

Otemachi PLACE
EAST TOWER

NTT Data
Otemachi Bldg.

Yurakucho Infos
Marunouchi Police Sta.

Tokyo Station
TOKYO TORCH (Tokyo Tokiwabashi Project)

The Mitsubishi Estate Group’s History
and Achievements

Marunouchi

Eitai-dori Ave.

Pacific Century Place
Marunouchi Bldg.

Marunouchi
Central Bldg.

GranTokyo
South Tower

Asahi Life
Insurance
OtemachiBldg.
(Owned by aspecial-purpose
company undermanagement of
Mitsubishi Estate)

TOKIWA BRIDGE

Zenigamecho
Bldg.

Nippon Bldg.

■ Completion before 2002

Today

■ Completion after 2002
GranTokyo
North Tower

Marunouchi
Trust Tower Main

Marunouchi
Trust Tower North■ Completion after 2009
■ Completion after 2020
■ Completion after 2020 (Planned)

Tokiwabashi Tower

Tekko Bldg.

900 m

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Sapia Tower

1,900 mNumber of Companies Listed on the First
Section of the Tokyo Stock Exchange*1

118

Fortune Global Top 500 Companies(Companies)*3

Consolidated Net Sales of the 115 Companies in
the Marunouchi Area

122 trillion

Equivalent to around
8.85% of GDP of Japan Approx. ¥*2(Companies)

20

Marunouchi

Approx.

280,000*2

Number of Buildings

3(Including buildings under construction)

102 /Approx. 4,300*3181 haNew York Midtown

1Toranomon

76 ha

19

Shinagawa

Building Floor Space(Including floor space of buildings under construction)

940 hectares

Shinagawa

2
0

2

36

*3

Shibuya

Railway Lines Servicing the Area

28 lines, 13 stations

Shibuya06Number of head offices oflisted companiesT op 50 company head
offices in terms of market
capitalization
Overseas financial
company offices

178 haTokyo Marunouchi
Toranomon

120 ha4

March 2000

9.0%
Information

10.4%

9.2%

42.5%

March 2022
Manufacturing

22.9%
Professional Firms

19.7%

As of the end of March 2022, the contracted area in the Marunouchi area (Mitsubishi Estate only) has
increased about 1.8 times compared with the end of March 2000. In terms of tenant composition, theratio of professional firms has been rising.

Concentration of Professional Firms
Shinagawa

75 ha

Trading

Trading

Manufacturing

23.7%

15.5%

58 ha

Singapore Downtown Core

*2

(Stations with the same name on different lines are counted in
Source: Fortune Global Top 500, 2021, and Mitsubishi Estate Co., Ltd.
As of March 2022, Source: Mitsubishi Estate Co., Ltd.
number of lines.)*1 Number of listed companies on the First and Second sections of the Tokyo Stock Exchange with head offices in the Otemachi, Marunouchi, and Yurakucho areas*2 Otemachi-Marunouchi-Yurakucho (OMY) District Redevelopment Project Council, “The Council for Area Development and Management of Otemachi, Marunouchi, and Yurakucho 2022”*3 As of March 2022, Source: Mitsubishi Estate Co., Ltd.

6.3%

Nihonbashi*3

33

Information

Finance

OthersFinance

22.2%

4.4%

86 ha

17

Toranomon

14.2%
Professional Firms

ShibuyaHong Kong Central

37

Nihonbashi

Others89

515

LondonContracted Area and Tenant Composition in the Marunouchi Area (Mitsubishi Estate Only)

Domestic

City of London

292 ha72

16

New York

TOPIC

Comparison of Area Sizes

118

13

Marunouchi

Nihonbashi

Number of Office Workers

Approx.

Number of Major Corporate Headquarters and Offices
in Comparison with Other Main Tokyo City Areas

49 ha

As of May 2022, all of the four major law firms in Japan and three of the four leading audit companies have their offices inMarunouchi.
Law firms:	Anderson Mori & Tomotsune, Nagashima Ohno & Tsunematsu, Nishimura & Asahi, and Mori Hamada &Matsumoto
Audit companies: KPMG AZSA LLC, Deloitte Tohmatsu LLC, and Pricewaterhouse Coopers Aarata LLC

Source: Mitsubishi Estate Co., Ltd.

5

The Mitsubishi Estate Group’s History and Achievements

Promoting Marunouchi NEXT Stage

Urban Development Theme: “Marunouchi Re-Design”
An Urban Development Concept Taking into Account the Post-COVID-19 Era

Based on the concept of creating the world’s most interaction-inspiring neighborhood, Mitsubishi Estate has redeveloped

In light of the fundamental social changes accelerated by the COVID-19 pandemic, taking into account the post-COVID-19 era,
we integrated an urban development concept and five urban development strategies based on the role required of the
Marunouchi area.

18 buildings in the Marunouchi area (Otemachi, Marunouchi, and Yurakucho), beginning with the reconstruction of the
Marunouchi Building. Today, positioning urban development from 2020 onward as part of Marunouchi NEXT Stage,
we are promoting new urban development with an eye on the post-COVID-19 era by embarking on the redevelopment ofConcept

Theme

Main Redevelopment Areas

Redevelopment Projects*1

Tokiwabashi and
Yurakucho

Marunouchi 1-3,
Tokyo Tokiwabashi,
Uchikanda 1-chome,
Yurakucho
Redevelopment.

“Marunouchi Re-Design”

Marunouchi

1

Kokyo (Imperial Palace) Gaien National Gardenakuc

Yurakucho
Center Building(Yurakucho Marion)

Shin-Kokusai
Bldg.

Yusen Bldg.

Marunouchi Naka-dori Ave.

Marunouchi Park Bldg.

Marunouchi
2-chome Bldg.

Mitsubishi Ichigokan
MuseumMitsubishi Bldg.

(Annex)

Otemachi First Square

Mizuho Marunouchi
Marunouchi Terrace
Tower

The Industry Clubof Japan and
Mitsubishi UFJ
Trust andBanking Bldg.

Shin-Marunouchi
Bldg.

MUFG Bank
Head Office

Marunouchi
Eiraku Bldg.

Otemachi Tower

Nihon Seimei
Marunouchi Bldg.

Tokyo Kotsu
Kaikan Bldg.
(Owned by a
Mitsubishi Estate
consolidated
subsidiary)

Marunouchi
South Exit

Tokyo Bldg.

Marunouchi
Central Exit

HOSHINOYA Tokyo
Otemachi Naka-dShin-Marunouchi
Center Bldg.

Marunouchi Oazo

Marunouchi
North Exit

Marunouchi Marunouchi
Hotel
Kitaguchi Bldg.

ori Ave.

OTEMACHI FINANCIAL CITY
North Tower

Tokyo
Sankei
Bldg.

(Planned completion in 2025)

Strategy 5

Realize a digital vision and smart cities

Foundation:

Otemachi PLACE
WEST TOWER

GranTokyo
North Tower

Marunouchi
Trust Tower Main

Shin-Otemachi
Bldg.
NTT Data
Otemachi Bldg.

Realize a digital vision and smart cities

Otemachi PLACE
EAST TOWER

Asahi Life
Insurance
OtemachiBldg.
(Owned by aspecial-purpose
company undermanagement of
Mitsubishi Estate)

Zenigamecho
Bldg.

Project Overview: TOKYO TORCHTOKIWA BRIDGE

Making Japan a Place That Excites the World

Nippon Bldg.

Under a project vision of “bringing light and energy to Japan,” Mitsubishi Estate is promoting a business to create a symbol of Japanthat will serve as a beacon of hope for the world, combining inspiration and excitement that can only be experienced in a real setting.

Marunouchi
Trust Tower North

Tokiwabashi Tower

Tekko Bldg.

5

Uchikanda
1-chome Project(tentative name)TOKYO TORCH (Tokyo Tokiwabashi Project)
Eitai-dori Ave.

Marunouchi
Central Bldg.

TOKYO TORCH(the Tokyo
Tokiwabashi Project)

Marunouchi’s infrastructure accumulated
over more than 130 years

NTT Communications
Otemachi Bldg. (Annex)
Urbannet
Otemachi Bldg.

Tokyo Station2

	Develop an atmosphere and identity conducive to creative
activities

	Provide services and “experiential value” tailored to the needs of individuals by working to achieve digital transformation through area-wide efforts

Marunouchi Police Sta.

GranTokyo
South Tower

Facilitate in-person connections and communication

	Promote urban development that earns the understanding of companies andpeople engaged in area-wide, creative activities that tackle themes including
the achievement of a decarbonized society as well as activities centeredon the arts and business and on communities and urban environments

Chiyoda Ward
Sports Center

Yurakucho Infos

Sapia Tower

Promote diverse themes and communities

	Utilize the distinguishing features within Marunouchi’s 120-hectare
development area to open various facilities and communities that canbe communally used by people working in the area

NTT Communications
Otemachi Bldg.

900 m
1,900 mTokiwabashi Tower

Torch Tower

Tower C

Zenigame-cho Building

544,000 m2

20,000 m2

30,000 m2

63 floors / 4 floors

4 belowgroundfloors

9 floors / 3 floors

Site Area

31,400 m2

Total Floor Area
Size (Aboveground/ Belowground)

Name

HeightTokiwabashi
Tower

Completion

1

2

3

Mizuho Marunouchi Tower,
Ginkokaikan, and Marunouchi
Terrace (Marunouchi 1-3 Project)TOKYO TORCH(the Tokyo Tokiwabashi Project)

Uchikanda 1-chome Project(tentative name)

Site Area

11,200 m2

31,400 m2 (entire block)

5,100 m2

Total Floor Area

180,900 m* See the following page

85,200 m2

1,860% (entire block)

1,400%

Plot Ratio

Building Size

Launch of Construction
Completion of Construction

6

Develop an atmosphere and identity
conducive to creative activities

Marunouchi Line3

Otemachi Nomura Bldg.

NTT
Marunouchi
Bldg.

Pacific Century Place
Marunouchi Bldg.

Strategy 4

Uchikanda
1-Chome ProjectSouth Tower

Otemachi Station,

JP TOWER

Tokyo Station, JR Keiyo Line

Yurakucho Ekimae Bldg.
(ITOCiA)(Owned by a
Mitsubishi Estate
consolidated subsidiary)

Otemachi
Bldg.

Otemachi Naka-dori Ave.

Marunouchi Naka-dori Ave.

Tokyo Station, Marunouchi Line

Tokyo International Forum2

	Spur community interactions that promote coexistence with those inother industries to enable cooperation with likeminded partners tackling the same issues in a challenging era

4
OTEMACHIFINANCIAL CITY
GRAND CUBE

KDDI
Otemachi Bldg.

Marunouchi Center Bldg.

on

Facilitate in-person
connections andcommunication

Keidanren
KaikanYomiuri
Shimbun
Office Bldg.

Line

Mitsubishi
Corp.
Head Office

Marunouchi 1st St.

Marunouchi
Naka-dori Bldg.

Daimyo-koji Ave.

Stati

Promote diverse
themes andcommunities

Chiyoda Line

Ginkokaikan

Yomiuri Kaikan
BIC Camera

ho

Offer diverse working
environments that serveas co-creation platforms

ad eOtemachi Station,

Marunouchi Bldg.

Shin-Tokyo Bldg.
Shin-Nisseki
Bldg.

Otemachi One Tower

SMBC East Tower
Tokyo
Kaijo
NichidoBldg.

Gyoko-dori Ave.

Meiji Yasuda Seimei Bldg.

Marunouchi
Mitsui Bldg.

Marunouchi 2nd St.

Marunouchi
Nijubashi Bldg.

Kishimoto
Bldg.

Strategy 3

3

JA Bldg.

Ote Center Bldg.

Strategy 2

N

OtemachiPark Bldg.

	Offer diverse working environments that serve as co-creation platforms

	Plan and develop workspaces that can be used flexibly (daily rental,
hourly rental, membership systems, and conversion of public spaces
into workplaces)

Strategy 1

NIKKEI Bldg.

MITSUI & CO. Building

O te mac hi Rive rsid e Pro me n

ShinYurakucho
Bldg.

SMBC
Head Office
Bldg.

Otemachi Station, Tozai LineYur

Yurakucho
Bldg.

Marunouchi 6th St.

Marunouchi 7th St.

Hib

Yurakucho
Denki Bldg.

Nippon Life
Marunouchi
Garden Tower

1

Otemachi Station, Toei Mita Line

Hibiya-dori Ave.

Meiji Seimei Kan
Bldg.

Marunouchi 3rd St.

Kokusai Bldg.

SanshiKaikan Bldg.

Otemon Tower •ENEOS Bldg.

Nijubashimae Station, Chiyoda Line

Imperial
Theater

Marunouchi 4th St.

DN
Tower 21

Marunouchi 5th St.

iya

Hib

ion,

Stat

Togyo KaikanNippon Broadcasting
System Bldg.

iya

The
PeninsulaTokyo

Yurakucho Station, Yurakucho LineLine

Marunouchi
Police Sta.
HibiyaSankei Bldg.

Palace HotelTokyo

Wadakura-bori
Moat

Babasaki-bori Moat

Hibiya Station, Toei Mita Line

HibiyaMarine Bldg.

OtemachiMizuho Marunouchi
Tower, Ginkokaikan,
and Marunouchi Terrace(Marunouchi 1-3 Project), Hanzomon

Hibiya-bori Moat

Toho
Twin Tower
Bldg.

Urban Development Strategies¥600–¥700 billion

1,100–1,300 thousand m2

PalaceBldg.

Redevelopment Projects
Yurakucho Building andShin-Yurakucho Building
Rebuilding Project

Company’s Total Investment by2030*2 Total floor area on construction confirmation application

YurakuchoHib
Ch iya S
iyod taa Li tion,neFloor Area of Total
Redevelopment Projects*2

Otemachi Station*1 Some project names are provisional

Tokyo Midtown
HibiyaMITSUBISHI ESTATE CO., LTD. Integrated Report 2022

“Co-creation platform for innovation through companies, employees, and visitors”
and“Environment facilitating optimal interactions among one million diverse workers”

Marunouchi NEXT Stage

Babasaki-dori Ave.

The Mitsubishi Estate Group’s History and Achievements

the Tokiwabashi and Yurakucho areas, in order to further evolve Marunouchi into an appealing and vibrant area.

2

1,300%
Mizuho Marunouchi Tower and
Ginkokaikan: 29 aboveground floors/ 4 belowground floors
Marunouchi Terrace: 10 above­
ground floors / 4 belowgroundfloorsJanuary 2018
September 202026 aboveground floors /3 belowground floors

146,000 m2
38 floors / 5 floors
212 m

390 m

—

53 m

June 2021

FY2028FY2028March 2022

FY2019FY2022October 2023

FY2022October 2023

FY2028TORCH TOWER(new construction)

Tokiwabashi Tower
New construction
Zenigame-cho Building
New construction

Demolition work

FY2028Torch Tower

Tokiwabashi
Tower
Demolition work

* See the following page

July 2022
November 2025

Tower C Phase 1 ofrenovation work

Tower C Phase 2 of­renovation work

Zenigame-cho
Building

Existing properties
Properties for demolition
New construction / renovation work
Completed properties

Tower C

7

The Mitsubishi Estate Group’s History and Achievements

Expanding into Various Domains
Mitsubishi Estate has expanded its business activities into various domains by utilizing its unique expertise and know-how

GrowthThe Mitsubishi Estate Group’s History and Achievements	
Utilization of expertise and knowledge
gained through other businesses

accumulated through the Company’s development of Marunouchi. We have also constructed a cycle creating a wide range ofOutlet Malls

value through the achievement of synergies by returning the expertise and know-how obtained in new businesses to urban

2000 O pened GOTEMBA PREMIUM OUTLETS®
 onverted Chelsea Japan Co., Ltd., into consoli2009 C
dated subsidiary (renamed Mitsubishi
Estate•Simon Co., Ltd., in February 2013)

development efforts in Marunouchi.

Akasaka Park HouseGOTEMBA PREMIUM OUTLETS®

	Development of outlet malls boasting the top
customer-drawing power in Japan by leveraging
tenant relationships and information networks
established through the operation of
Marunouchi retail facilities

Residences
1969 Akasaka Park House sold in lots, signifying thestart of the condominium business2011 Mitsubishi Estate Residence Co., Ltd., establishedthrough the integration of the residential businesses of Mitsubishi Estate Co., Ltd., Mitsubishi
Real Estate Services Co., Ltd., and Towa Real
Estate Co., Ltd.

Number of Outlet Malls

9 malls

Store Area

	Provision of residential properties and services
combining the comfort, safety, and other qualities cultivated through our operation and management of office buildings

345,500 m

2

Number of Stores

Approximately

1,740 stores

Condominium Business in Japan Land Bank

Approximately

14,800 units

Start-Up Support

Redevelopment Projects and Large-Scale Development
Projects (Number of Units)

Approximately

80 buildings

1271 Avenue of the Americas

International

M A R U N O U C H I

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Approximately ¥700
Number of Companies Selected: 33

Number of Applicant Companies: Approximately(Cumulative total)* The Accelerator Program, running since 2017, is a project to create new
businesses through open innovation with start-up companies. In 2021,
we selected nine start-up companies under the project.

	
Utilization of plot ratio transfer and other methods in the redevelopment of Marunouchi

Investment Management

443,817m
Europe: 62,321m
Asia and Oceania: 58,757m

2

2001 Japan Real Estate Investment Corporation became the first JREIT in Japan
to be listed on the Tokyo Stock Exchange
2015 Acquired the American investment management company TA Realty LLC
2017 Mitsubishi Estate Logistics REIT Investment Corporation was listed on theTokyo Stock Exchange

22Royal Park Hotel

Hotels	Accumulation of expertise through a track record of operating abundant
real estate assets

1989 Opened the Royal Park Hotel	Acquisition of hotel sites and operation of hotels
by leveraging tenant relationships and operationand management expertise we have built up in
Marunouchi
Number of Rooms

Hotel Management Business:

Note: All figures are correct as of March 31, 2022.

20.0 billion

Accelerator Program*	Establishment of a robust network through theexpertise refined and accumulated in the development of Marunouchi as well as ample financial resources

North America:	
Establishment of a new Marunouchi brand as a
hub for technology start-ups
Amount of Investment in Start-Ups(Includes Amount Committed Since 2016)

1972 Established Mitsubishi Estate New York Inc.
1986 Established MEC UK Limited
1990 Initiated capital investment in the Rockefeller
Group International, Inc.
2008 Established Mitsubishi Estate Asia Pte. Ltd.

Contracted Area

FINOLAB2007 E stablished EGG JAPAN, a new business creation
support hub, in the Shin-Marunouchi Building stablished FINOLAB, a co-working office special2016 E
izing in fintech start-ups

23,360 units

Total Number of Rental Apartment Buildings8

	Utilization of expertise and knowledge
gained in Marunouchi

4,334 rooms

Changes in Assets under Management (AuM) in the Investment Management Business(Billions of yen)

Business

At the Time Long-Term Management Plan
2030 was announced (January 2020)(As of end of FY2022*)

Asia and
Oceania
40

Asia and
Oceania130

Europe
350

Japan
1,720
JRE
1,020

1,000

MJIA
700

JRE
11,000

Japan
2,100

Total:
Approximately

Total:
United Approximately
States ¥3.1 trillion
Overseas
1,390

Europe500

Overseas
2,430

United ¥4.5 trillion
States
MJIA
1,800
1,000

* Domestic: as of March 31, 2022; Overseas: as of December 31, 2021

9

The Mitsubishi Estate Group’s History and Achievements

Mitsubishi Estate’s Strengths

Relationships

Among the key strengths of the Company are its abundant customer contact points
and relationships of trust that it has accumulated through a host of real estatedevelopments and operations, in addition to its partnerships with subcontractors
and business partners. The Mitsubishi Estate Group intends to make new history
through the cultivation of various relationships that uncover latent needs and leadto the development of solutions thereto.

Our Long-Term View on Urban Development
and Forward-Looking DNA

The Mitsubishi Estate Group’s History and Achievements

Mitsubishi Estate possesses urban development expertise based on a long-termview—one that evolved Marunouchi into a major business center over a period of
130 years—and a DNA for providing value that is constantly ahead of the times, as
more than exemplified by its development of Japan’s first outlet shopping mall andits early entry into the real estate investment trust (REIT) market.

Evolution of Marunouchi
into a Major
Business Center

Establishment of Outlet
Malls as Part ofJapanese Culture

Early Entrance into
the REIT market

Beginning ofDevelopmentin 1890

Opening of GOTEMBAPREMIUM OUTLETS®
in 2000

Establishment of Japan
Real Estate AssetManagement Co., Ltd.,in 2000

2022

Customer Contact Points
Number of Office Workers in Marunouchi

Approx.

1

Number of Outlet Malls
Operated

118

9

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

	Please see page 44
for details.

Abundant Real Estate
Asset Touchpoints

Strengths

Please see page 52
for details.

200 million per year

Logistics Facilities(Total Number of Developed Facilities)

Rental Apartment Buildings(Owned or under Development)

Number of Rooms in Hotels under
Operation

80

Number of Condominiums Sold a Year

3,046

20

4,334

Number of Airports Operated by Airport
Operation Business

10

Number of Condominiums underManagement

Number of Overseas Offices

Retail Facilities

International Asset Balance

345,327

23 (Including 9 Outlet Malls)

Note: All figures are correct as of FY2022 or as of March 31, 2022.

Approx.

19 offices

986.0 billion¥

3,350 companies

4

The power of our human resources—our most important management
resource—underpins our ongoing creation of value. The Group possesses anarray of outstanding human resources, all of whom are able to create “something” from “nothing” and have adopted its founding DNA. In addition, we are cultivating and strengthening our diverse human resources through theestablishment of an environment conducive to stimulating creativity and thetaking on of challenges.

Productivity per Employee—A Compact, Elite Group Honed by a
Challenging Corporate Culture(Reference) Productivity per Employee

1,349,489

Please see pages 42 to 55 for details.

Number of Office Buildings underManagement

640,000 households

Number of Tenants (Nationwide, All
Purposes)

FY2022

FY2022

FY2022(Millions of yen)(People)(Millions of yen)

Operating Operating
revenue
profitMitsubishi Estate owns about 30 office buildings in the Marunouchi area alone. In
addition, we have helped develop a wide spectrum of real estate assets in our
office building, residential property, retail facility, hotel, logistics facility, airport
operation, and international businesses. Based on the experience we have acquired
through these activities, we will uncover latent social issues and create solutions
to address them.

218

10

Approx.

Building of a Global
Platform through Executionof M&A and Other Activities

280,000

Please see pages 4
and 5 for details.

Approx.

Number of Patrons of Group-AffiliatedRetail Facilities, Hotels, and Airports

Human Resources Who Have
Please see pages 62 to 67 for details.
Adopted Our DNA umber of Office Workers
N
in Marunouchi

Approx.

3

Number of Members Eligible to Join the
Residence Club

280,000

2022

Number of Companies
Listed on the First Sectionof the Tokyo Stock
Exchange

Please see pages 42 to 55 for details.

25

attribProfit attrib- Number ofOperating Operating Profit
utable toutable torevenue
profitemployees
ownersofowners of (Consolidated)
per
per
per
parentemployee employee parent
employee

278,977

155,171

10,202

132.3

27.3

15.2

Establishment of a Leading-Edge Corporate
Governance System
Please see pages 73 to 91 for details.
We are working to establish a leading-edge corporate governance system that
contributes to improving our overall effectiveness and enhancing corporate value
over the long term. We are also responding to social needs through measures that
include transitioning to a Company with Nominating Committee, etc., and ensuringoutside directors account for approximately one-half of the Board of Directors.
A Total of 15 Directors, of Whom 7 Are
Outside Directors
Transition to a Company with
Nominating Committee, etc.
An Executive Compensation Plan
Aiming to Align Shareholders’ andExecutives’ Interests
Implementation of Third-Party
Evaluations in Determining theEffectiveness of the Board of Directors
Disclosure of a Skills Matrix

Nonexecutive,
independent,
outsidedirectors

Inside directors whoare concurrently
serving as corporate
executive officers

Number of female
directors

2

5

7

Numberof Female
Directors

Board
Composition

Inside directors who
are not corporate
executive officers

3

Number of maledirectors
13

11

Mitsubishi Estate’s Value Creation Model

Strengths and Value Creation Cycle

The Mission of the Mitsubishi Estate GroupWe contribute to society through urban development.

Having grown as a comprehensive developer, Mitsubishi Estate aims to realize ongoing corporate value improvement andachieve a sustainable society through its steadfast commitment to creating attractive urban developments that anticipate

By building attractive, environmentally sound communities where people can live, work, and relax with­contentment, we contribute to the creation of a truly meaningful society.

changes in the times and to enriching people’s lifestyles, while leveraging and enhancing its various strengths.

Changes in the External Environment
 romotion of digital transformation (DX)P
Increase in borderless and multiple-use realestate, etc.

Long-Term
Management Plan
2030
Fundamental Approach

Uncovering
latentneeds

Abundant contact
points with ­customers,
unique to the Group

Commercial Property
Business

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Value Created through Our Businesses (Outcomes)

Strategies

Scaling as
a business

International
Business

Residential
Business

Investment Management
Business

Architectural Design &Engineering Business andReal Estate Services
Business

Other

Collaboration(open innovation)with external players
possessing expertiseand ideas

Searching forsolutions

Driving force unique to the Mitsubishi Estate Group

Mitsubishi Estate’s Value Creation Model hanges in workstyles due to COVID-19
C
pandemic
Increase in ESG-related demand

Aim for improvements in both social
value and sustainable shareholder
value that are highly resilient tomarket fluctuations through businessthat addresses social issues andthe needs of the times

Foundation for Value Creation

Enterprising DNA

Human Resources Who Have Adopted Our DNA

Abundant Real Estate Asset Touchpoints

Establishment of a Leading-Edge Corporate Governance System

Relationships

Compliance

Strong Financial Foundations

Risk management

Credible and Reputable Group Brand

IT / DX

Increasing social value

Transformational improvements to the Group’s businessportfolio’s efficiency and market resilience aimed atachieving the KPIs set out in its Long-Term Management
Plan 2030

	Cities that conduct management of climate change, waste,
and energy issues
	Cities conducive to realizing diversity and inclusion	Innovative cities acting as wellsprings for open innovation	Safe and peaceful cities of a sustainable and resilient nature

To create a truly meaningful society, the Mitsubishi Estate Group offers a broad range of value to all of its­stakeholders through attractive urban development, leveraging its comprehensive capabilities and strengths.

Increasing
Social Value

Output (Types of Value Offered by Our Businesses)

Achievement of a
Sustainable Society

Synergy

Increasing
Shareholder Value
Build a More Efficientand Market-Resilient
Business Portfolio

Domestic Asset Business

International Asset Business

Non-Asset Business

Implement urban development
proposing new workstyles andlifestyles through the promotion
and commercialization of redevelopment projects, including in
Marunouchi

Establish a credible and reputable
Group brand in growing overseas
markets by leveraging development know-how accumulated
in Japan

Offer value appropriate for the
coming era in new domains throughcollaboration with partners

Achievement of a Sustainable Society
Environment

Please see pages 20 to 23 for details.

Diversity & Inclusion

Innovation

Resilience

Viewing “Sustainability” and “Quality of Life” as our value propositions, we will
endeavor to achieve a sustainable society through our business activities.
Major Business Environment
Trends / Material Issues
Based on Social Issues*Competitive Advantages (Strengths)

Increasing shareholder value

Environment

Globality

Financial Value

Non-Financial Value

Operating revenue

Percentage of CO2 emissions reduction(compared with FY2020)

1.3494 trillion¥

Community

Operating profit
Declining
Birthrate andAging Population

Leveraging
Existing
Properties

DigitalInnovation¥

278.9 billion

ROE

Diversity

8.1%

37%

Percentage of electricity from renewable energy sources

31%

Percentage of buildings designated as shelters forstranded commuters

100%

Note: All figures are correct as of FY2022 or as of March 31, 2022.
    * Please refer to the Company’s website for more information on its process for identifying material issues.

https://mec.disclosure.site/e/sustainability/goals/material-issues/

12

13

President’s Message

President’s Message

 onsistent Offering of New Value to Society by Pursuing Urban
C
Development That Earns the Understanding of People
Guided by its commitment to establishing Marunouchi as Japan’s flagship business center, theMitsubishi Estate Group has spent over 130 years evolving the area into a world-leading businesscenter since embarking on the development of what had been unused fields. During this time, theGroup has navigated various eras and crises, including wars and earthquakes, Japan’s period of
rapid economic growth, and the collapse of the country’s bubble economy. The area’s evolution has
truly been a history of creating something new, as if painting a picture on a blank canvas. In theprocess, the transformation of Marunouchi has driven Japan’s economy and society, such as thedevelopment of Tokyo Station and the enhancement of the Imperial Palace.
As times change at an unprecedented speed, keeping pace with such change as well as creating
President’s Message

new, forward-looking proposals and businesses have become urgent priorities. I hope to establish
the Marunouchi area as not only a business center but also a hub of insight and inspiration where
people interact with each other and the latest information is on offer. I also aim to further increase
the preeminence of the Marunouchi area to communicate the appeal of Japan’s regions, connecting Tokyo with other parts of the country while conveying Japan’s appeal to the world.
In terms of workstyles, while the COVID-19 pandemic has made ways of working more diverseand flexible, such as teleworking and flextime, I believe there is no single optimal solution for integrating the real and digital aspects of work. As a developer, we will go beyond real estate development
to propose the creation of office spaces tailored to the workstyles of tenant companies and offer
flexible workplaces in tune with new workstyles.
Meanwhile, turning our eyes to the global stage, the Mitsubishi Estate Group’s businesses have

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

expanded into a range of locations overseas. We will utilize the real estate development know-howthat we have cultivated in Japan in our urban development efforts worldwide while returning backto our domestic businesses the insight gained through our experience with a range of cultures andJunichi Yoshida

the latest real estate development methods overseas. By doing so, we will create a virtuous cycle

President & Chief Executive Officer
Mitsubishi Estate Co., Ltd.

our know-how in various countries throughout the world.

transcending business and geographical boundaries to promote urban development that draws on
Urban development does not end with the completion of a building. It is crucial to consistently
change urban environments in step with the times by enlivening them together with the people
who live, work, and visit there. One of our key tasks is incorporating appealing elements hand inhand with a diverse array of stakeholders while managing such an environment in accordancewith changes. I also believe that consistently offering new value to society by developing a system
to leverage in other areas the experience, ideas, and creativity we have cultivated in urban development is the very reason for our existence.
Throughout its history, the Mitsubishi Estate Group has sought to offer comfortable working andliving environments through urban development efforts. As we move forward, we will continue
responding flexibly to an ever-changing society to pursue urban development that earns theunderstanding of people and which is oriented toward visitors and ordinary citizens.

We aim to contribute to the world and the planet as a corporate group that
continues growing sustainably by pursuing meaningful urban development that isembraced and truly required by society.

14

15

President’s Message

President’s Message

 New Role for Offices:
A
Importance of Offering Enhanced Office Spaces to Inspire
Employees to Work at the Office

President’s Message

providing extensive shared spaces, leveraging digital technologies that support efficient workstyles, and utilizing a large plaza for implementing regional revitalization. With regard to sharedspaces, we created facilities that include a cafeteria for office workers, meeting rooms, and alounge. Specifically, in a space equipped with a kitchen in one part of the cafeteria, we operate

While there has long been a trend for visualizing the office spaces of the future, I believe that thisteam-building programs through food. Using a specially designed app, office workers can perform

trend has further accelerated in the wake of the COVID-19 pandemic. For example, the workstyle oftasks such as ordering at the cafeteria and reserving meeting rooms, with digital technologies

working from home, which had hitherto not been widely adopted due to issues with establishing aenabling more convenient use of office spaces. Furthermore, in addition to joint initiatives with local

suitable networking environment and managing employees remotely, has quickly become wide-

governments of various regions of Japan, such as the creation of a carp pond, the large plaza of

spread and its efficacy for employees performing simple daily tasks and for those needing toapproximately 7,000 m2 is a place of recreation and relaxation where people can experience newconcentrate has become clear. However, working from home has also reaffirmed the importance ofinteractions and gain new insight, including through the regularly held markets.

offices as places to facilitate lively communication, ideas born of incidental conversations, and theAmid increasingly diverse workstyles, for me it is essential that employees assemble at theirbuilding of person-to-person relationships of trust. Going forward, I expect that hybrid workstyles

place of work for reasons including nurturing a sense of belonging with their company and recruit-

combining working from home with working at the office will become the norm, with no complete

ing and training new employees. People require environments facilitating workstyles that grant

return to pre-COVID-19 workstyles. Under such circumstances, I feel that we must transformthem mental and physical fulfillment. Creating such environments so that they extend to external

offices into spaces that facilitate lively internal and external communication and appealing envi-

spaces and the surrounding area as a whole, rather than being confined to offices, is also crucial. I

ronments that inspire employees to work at the office. To this end, offices need to provide functions

am convinced that we will be called upon in the future to not only create attractive individual

they have not offered thus far. For example, the creation of open spaces for use by anyone, theoffices but also develop areas as attractive urban environments.

installation of individual booths suitable for remote meetings, and the addition of amenities andservices that encourage employees to work at the office. I think we are entering an era that allows
people to work more efficiently in accordance with the nature of their work and their respective
personal circumstances.
To give an example, we deployed an extensive array of devices to enrich the working lives of
employees at Tokiwabashi Tower, which we completed in June 2021 as the first stage of TOKYOMITSUBISHI ESTATE CO., LTD. Integrated Report 2022

TORCH, a large-scale mixed-use redevelopment project. The initiatives under the project include

 ustainability- and ESG-Based Management:
S
Promoting Businesses from a Long-Term Perspective as a
Responsible Global Citizen
Environmental, social, and governance (ESG) considerations are fundamental components of management. The earth serves as the foundation of society, including our lifestyles and economies.
Thus, our mission as human beings is to safeguard the earth as its inhabitants. I strongly feel that
we must increase our “love for the planet” in addition to paying greater heed to “A Love for the
People. A Love for the City,” our brand slogan. Our belief that we are a company that tackles issues
with integrity over the long term while keeping our feet firmly planted on the ground as a responsible global citizen will remain unchanged. At the present time, in particular, as we face multiple
challenges on a global scale, such as the COVID-19 pandemic, the Russian invasion of Ukraine, andsoaring fuel and material prices, I feel a sense of mission more strongly than ever.
Turning to the environment, we revised our greenhouse gas (GHG) emissions reduction targets
in March 2022 to align them with the new Net-Zero Standard of the Science Based Targets (SBT)
initiative,* declaring our goal of achieving net-zero carbon emissions by 2050. As part of our efforts
to introduce renewable energy at our properties, we will switch the electricity we use at Companyowned office buildings and retail facilities in the Tokyo metropolitan area and in the city of
Yokohama to electricity from renewable energy sources during FY2023, having already done so in
the Otemachi, Marunouchi, and Yurakucho areas.
While corporate-led initiatives are very significant, I believe it is extremely important that we firstendeavor to avoid wasting resources at the individual level. We have become over-accustomed to aworld of convenience, a habit that I feel has given rise to social issues such as garbage-related issues
and food loss. Setting targets for a waste recycling rate of 100% and a reduction of 20% in our waste
disposal volume in Marunouchi, we are implementing environmentally conscious initiatives that can betackled by individuals in their daily lives, such as the MARUNOUCHI TO GO Project, an activity for taking
home leftover food. It is my opinion that such initiatives create opportunities for each person to reflect
on social issues, thereby helping eventually achieve our vision of sustainable cities and societies.
* An international initiative aiming to limit the average global temperature rise resulting from climate change to below 2 ºC above pre-industrial levels

16

17

President’s Message

 itsubishi Estate’s Human Resources:M
the Group’s Greatest Strength—Offering an Environment
Facilitating Their Growth Is Our Corporate Responsibility
It goes without saying that human capital is vital for companies. The solid experience and knowhow accumulated by each and every employee are the Mitsubishi Estate Group’s greatest strength.
The globalization and diversification of its businesses, from the traditional development of realestate in Japan, has brought together a wide range of human resources in the Group. Furthermore,

President’s Message

The Mitsubishi Estate Group will continue growing
with its stakeholders by paying greater heed to“A Love for the People. A Love for the City”
and increasing its “A Love for the Planet.”in recent years we have focused on recruiting specialized personnel to promote new businesses
and digital transformation (DX). I am convinced that facilitating interactions based on an acceptance of diversity and open-mindedness among such human resources—who possess a variety
of expertise, skills, and backgrounds—will lead to the development of a diversity of opinions,
President’s Message

which will in turn help spur further innovation. This is why it is my mission to promote the creation of workplaces that embrace and further develop people of diverse backgrounds, life stages,
and sensibilities.
Mitsubishi Estate requires human resources who can create spaces and operate services that
resonate with people, by clearly anticipating various social issues and the expectations of society
and cooperating with those with knowledge and experience in areas they do not.
In developing human resources, I think it is important to create conditions that allow people toreadily share information regarding the new challenges they are taking on and innovations with

Although we have recently been confronted with a variety of difficult issues, including thethose around them. Employees taking on new challenges one after another and drawing attention

COVID-19 pandemic, an extremely unstable global situation, and frequent natural disasters, theto their activities inspire other employees and encourage their growth. I am of the opinion that it isCompany achieved record highs in FY2022, the year ended March 31, 2022, for operating profit,

vital that those who lead the formulation of systems, including myself, and those who oversee theirprofit attributable to owners of parent, and cash dividends per share, while ROE remained at

operation create an environment that enables employees to readily take on challenges.

around the 8% level. We expect further profit growth in FY2023. These results indicate that the

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Currently, Mitsubishi Estate’s own offices have completely open-plan floors, with no partitions

seeds we have planted are gradually beginning to bear fruit. As I sense that a foundation for

between departments. Partitioning departments leads to the development of separate worlds inachieving our targets is now taking shape, management executives and employees will continue toeach department, creating conditions not conducive to establishing synergies that realize newunite as one toward achieving our KPI targets for 2030.

value. Simply eliminating partitions between departments to create an open environmentLong-Term Management Plan 2030 seeks to raise our corporate value by implementing man-enhances employees’ understanding of matters in other departments, facilitates the formation ofagement that adopts the improvement of shareholder value and the enhancement of social value

cross-departmental project teams, and increases opportunities for communication with otheras the two prongs of its strategy. Real estate is a long-term business: our development of

departments, thereby better enabling the birth of new ideas and innovations. Rather than our

Marunouchi still continues to evolve after the passage of more than 130 years. Additionally, ourchange in office layout marking the end of revisions, we have to date made many minor renovations

business environment is constantly changing and the speed of change is accelerating every year.

to reflect a variety of opinions from employees. I think that reflecting the opinions of employees has

Amid such circumstances, I believe that it is crucial to grow sustainably by addressing changes inmade our offices better places to work. Accordingly, we will continuously promote initiatives tothe business environment and further realizing innovations with an eye on the future. Besides

make further improvements in this regard. Moreover, taking the lead as a developer in meeting theseeking to achieve the KPI targets stipulated in Long-Term Management Plan 2030, we will pursue

challenge of accommodating new workstyles allows us to give thought to how new offices ought tomeaningful urban development that is embraced and truly required by society. Achieving this goal

be and reaffirms the importance of working spaces. I aim to give back the insight gained throughis the most important mission I have been given.

this process to our customers.
I pledge to continue working with our stakeholders to enable Mitsubishi Estate to grow steadily as
a company that can contribute to the world and the earth through urban development. I ask for chievement of Steady Growth with Our Stakeholders throughA
Urban Development

your continued support for our efforts.

In January 2020, the Mitsubishi Estate Group unveiled Long-Term Management Plan 2030, which
set forth targets for achieving return on assets (ROA) of 5%, return on equity (ROE) of 10%, andearnings per share of ¥200.00. As this management plan is long term in nature, spanning adecade, I am well aware of the importance of steadily demonstrating its achievements.

18

President & Chief Executive Officer
Mitsubishi Estate Co., Ltd.

19

The Mitsubishi Estate Group’s Strategies

Long-Term Management Plan 2030

Growth Strategies and Targets
Leveraging our long-term perspective on urban development and forward-looking DNA, in addition to our extensive user reach and abundant real estate asset touchpoints, strengths of the Group, we will seek to realize growth in the three domains of our domestic asset business, international asset business, and non-asset business.

Overview of Strategies

Early to Mid StageIn light of the rapidly changing market environment, the Mitsubishi Estate Group has formulated a 10-year plan, LongTerm Management Plan 2030, as it aims to continuously provide value sustainably to its stakeholders over the longer
term. To promote urban development, which forms the core of its business, the Company will raise the value of facilities
and areas and boldly take on the challenge of achieving growth in new domains, which will involve initiatives to be carried out over the long term, by formulating management plans with more suitable periods.

The Mitsubishi Estate Group’s Strategies

2030 Goal

Mid to Late Stage

Approx. +¥50.0 billion(vs. FY2020)
FY2020 results: ¥201.0 billion

Advance Redevelopment Projects
 dvance and commercialize redevelopment
Aprojects, including in Marunouchi

Profit Contributions from
Redevelopment Projects
 chieve sizable profit contributions fromA
large-scale projects, including TOKYO TORCH

Investment and Return Plan (FY2021–FY2023)(Billions of yen)

The Mitsubishi Estate Group’s Mission

Investment
CapitalRecycling

Creation of a Truly Meaningful Society through Urban Development
A Pair of Turning Gears

2030 Targets

Four key themes* to realize asustainable society* Environment, Diversity & Inclusion,
Innovation, and Resilience2030 Targets

ROA
ROE

Increasing
Social Value

Fundamental Approach

Synergy

Increasing
Shareholder
Value

Create value for everys­ takeholder, including­visitors and employees

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

	Optimize capital-recycling business in line with market conditions* Net operating income = Rental income — Rental costs (excluding depreciation)

Leverage Existing Strengths

RentalEPS

Residential

5%
10 %
¥200

Optimize the balance of new investments and capital returns in response to market conditions

 ecure and commercialize redevelopment
S
projects

International AssetBusiness

Increase the number of units sold andrealize profits from redevelopment projects

Net Investment

Marunouchi

150

0

150

Outlet malls, etc.

100

0

100

Condominiums

500

500

0

Others

450

300

150

Total

1,200

800

400

	Asia: Enhance development business	U.S.: Enhance and diversify capital-recycling business	Europe: Advance development business and enhance revenue base

Early to Mid Stage

Transformational improvements to the Group’s business portfolio’s efficiency
and market resilience

Realize Our Mission and Sustainable Growth
by Increasing Both Social Value and Shareholder Value

2030 Goal

Mid to Late Stage

Asia

Profit Scale with
Asset Accumulation

Stabilize Profitability via
Capital Recycling

 ecure development opportunities andS­accumulate assets
Realize profits (from residential and ongoing projects)

Optimize investments and capital returns

U.S.

	Improve ROA and ROE by expanding revenue via mainly market-resilient, non-asset and other businesses in combination with flexible capital policies

 nact approach to investments and returns: Stabilize revenue and Enhance capital efficiency
EAdvance large-scale development projects (8 Bishopsgate, 60–72 Upper Ground, etc.)
 trengthen capital-recycling business with local resourcesS
Carry out joint project development with local partners

Non-Asset Business	Optimize mix of investments, asset sales, shareholder returns, and financing in response to market growth projections

	Grow fee business	Utilize of new technologies, e.g., AI and robotics

Early to Mid Stage

ReturnNet Investment

Asia

100

100

0

Europe and the U.S.

200

200

0

Strategic allocation*

300–4500300–450

Total

600–750300

300–450

	Create new B2C and B2B2C businesses

Mid to Late Stage

Adapt to a Changing Future

Aspects for Value Provision in Light of Changes in the Social Environment
Sustainability Provision of solutions to current and emerging social issues

Promote Commercialization in
New Domains

	Sustainable urban development that proactively addresses climate change and other environmental issues
	Urban development that responds to lifestyle and human resource trends and facilitates active participation for all
Existing

Boost Profitability in New Domains

Investment Management Business: Grow assets under management(aim for ¥5.0 trillion by the mid-2020s)
Hotel management business: Expand number of hotel rooms (open 3–4 hotels per year)

2030 Goal

Approx. +¥50.0 billion(vs. FY2020)
FY2020 results: ¥16.0 billion
Investment Policy

 im for profit growth without affecting theAbalance sheet

Provision of innovative services and experiences	Urban development that provides inspiration and happiness to customers, allowing them to experience convenience, fun, well-being,
and community involvement

Investment* Aiming to invest ¥100.0–¥150.0 billion in addition to planned
investments over the three-year period to expand theInternational Business

Flexible Capital Policies

	Innovative urban development that continuously reinvigorates society	Dynamic, flexible urban development that builds disaster-resilient communities and prioritizes safety and security

Investment and Return Plan (FY2021–FY2023)(Billions of yen)

Goal
Build a More Efficient and Market-Resilient Business Portfolio

Approx. +¥50.0 billion(vs. FY2020)
FY2020 results: ¥46.0 billion

Grow International Business

EuropeQuality of Life

ReturnFundamental Approach	Enact Flexible Capital Policies in Response to Market Conditions (Value Creation through Balance
Sheet Management)

20	Advance Marunouchi NEXT Stage project	Increase NOI* with long-term development projects

Domestic AssetBusinessNew elect new domains
SIdentify business partners
Implement field trials

 onduct business trials
CAchieve early profits

 cale up businessesSAchieve sizable profit
contributions

 owever, consider investments in M&A andH
capital alliances for driving rapid growth andacquiring external know-how

21

The Mitsubishi Estate Group’s Strategies

Mitsubishi Estate Group
2030 Goals for the SDGs

The Mitsubishi Estate Group’s Strategies

Overview of
Sustainability (ESG) Initiatives

Environment 

Sustainable urban development that proactively addresses climate change
and other environmental issues

With the positioning of “Sustainability” and “Quality of Life” as its value propositions in Long-Term Management Plan
2030, the Mitsubishi Estate Group has declared its aim to solve social issues through its business activities.
In addition, to realize a sustainable society, the Group has established Mitsubishi Estate Group Sustainability Vision
2050 to be achieved in that year.
We have also formed a Groupwide working group that has identified four key themes as material issues from the perspective of achieving the Sustainable Development Goals (SDGs), in order to integrate sustainability into our management and further its promotion.
Mitsubishi Estate Group 2030 Goals for the SDGs establishes goals and key performance indicators (KPIs) for 2030 toachieve our vision for the four key themes determined in light of these material issues. We have positioned these goals
and KPIs as milestones for the specific themes and actions to be addressed in Long-Term Management Plan 2030.

GHG emissions, such as CO2: Reduce the total of Scope 1 and Scope 2 emissions byat least 70% and Scope 3 emissions by at least 50% by FY2031 compared with FY2020,
and achieve net-zero emissions for Scope 1, Scope 2, and Scope 3 by 2050
Renewable energy ratio: 100% by FY2026
Promote waste recycling and reduction of emissions focusing on food and plastic items
Waste recycling rate: 90%
Waste disposal: 20% reduction (compared with FY2020, per m2)
Promote sustainable timber use
Opportunities
Increasing need for acquiring and leasing real estate with low environmental impact
Reduction of waste accompanying longer demolition and rebuilding
time spans due to effective use of existing properties

2

Diversity & Inclusion 

Risks
Rise in vacancy rates and decline in sales closing rates and sales
prices in the event of a late response amid an increase in the need toacquire and lease real estate with low environmental impact
Increasing costs for new real estate development due to stronger environmental regulations and for countermeasures due to tightening ofstandards for repair work

Urban development that responds to lifestyle and human resource trends andfacilitates active participation for all trengthen hospitality and realize stress-free cities
SRespect different lifestyles, local customs, religions, and sexual orientation
Establish traceability of timber to be used in business activities by using wood equivalent tothat in the Sustainable Sourcing Code

Increasing
Shareholder
Value

A Pair of Turning Gears

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

1

SynergyOpportunities
Increasing demand for facilities and services to meet needs of global
customers
Alleviation of labor shortages through acceptance of non-Japanese
workers into Japan
Rise in demand for facilities and services that respond to diverse lifestyles, workstyles, and consumption styles, such as the acceleration of
teleworking and freelance working
Growth in demand for facilities and services tailored to new needs due
to demographic changes
Increasing demand for facilities and services tailored to the concept ofuniversal design, such as barrier-free layouts

Increasing
Social Value

Mitsubishi Estate Group Sustainability Vision 2050

Be the Ecosystem Engineers
We aspire to be a corporate group (engineers) that provides spaces and infrastructure (ecosystems)
where all actors (individuals, corporations, and other players) are able tocoexist sustainably and thrive together—economically, environmentally, and socially.

Backcasting

Quality of Life

Provision of solutions to current and­emerging social issues

Provision of innovative
services and experiences

Innovation 

Innovative urban development that continuously reinvigorates societyInnovate business models and maximize performanceSupport the creation of new ideas and businesses from the perspective of urban development
and contribute to the growth of cities and industries

Aspects for Value Provision in Light of Changes in the Social Environment
Sustainability

3

Risks
Increasing country-specific risks and compliance risks, including
supply chain management
Declining demand for facilities and services with inadequate provision
for diversified needs
Decreasing demand for facilities and services accompanying demographic changes (decline in working population, etc.)
Decreasing user numbers and rise in vacancy rates in the event of alate response amid an increase in demand for facilities and services
tailored to the concept of universal design, such as barrier-free layouts

Value propositions

Opportunities
Decreasing cost of environmental countermeasures and investmentswith the advancement of technological innovation
Rise in the efficiency and convenience of operating facilities throughutilization of IT and robots
Increasing development opportunities and needs in smart communities, residences, and offices

4

Resilience Risks
Declining demand for brick-and-mortar stores and services accompanying the advancement of online buying and selling, such as e-commerceDecreasing demand for facilities and services due to late response to
IT and digital innovation
Loss of opportunities because of a late response amid an expansion indevelopment opportunities and demand for smart communities, residences, and offices

Dynamic, flexible urban development that builds disaster-resilient communities andprioritizes safety and security
 nhance disaster preparedness to minimize functional stagnation during disastersEEnhance BCP function through hardware measures and strengthen neighborhood communication

Material Issues (Key Areas to Pursue in Sustainable Management)

Environment

22

Globality

Community

Diversity

Declining
Birthrate andAging Population

Leveraging
Existing
Properties

DigitalInnovation

Formulation of key themes
and KPIs based on
our material issues

Opportunities
Increasing need to acquire and lease real estate highly resilient todisasters, including urban floods, accompanying climate changeGrowing need to acquire and lease real estate highly resilient to disasters such as earthquakes

RisksDecreasing asset value and increasing expenses for maintenance andcountermeasures due to intensifying and increasing disasters, such asurban floods, accompanying climate change
Fall in asset value and rise in expenses for maintenance and countermeasures due to disasters such as earthquakes
Increasing renovation expenses and disaster countermeasure costs
accompanying aging buildings

23

The Mitsubishi Estate Group’s Strategies

Message from the Corporate Officer in Charge of Finance & Accounting and Corporate Communications

Message from the Corporate Officer in Charge of Finance &Accounting and Corporate Communications
high-specification buildings in highly convenient locations. I believe that Mitsubishi Estate’s high-quality portfolio willcontinue to create stable income gains going forward. Given the favorable sales of logistics facilities, rental housing, andother properties in the capital-recycling business in Japan, as well as our steady accumulation of projects comprising avariety of assets, I expect us to be able to achieve capital gains on a continuous basis.

To achieve Long-Term Management Plan 2030,
we will accomplish the plan’s key performanceindicators (KPIs) and enhance corporate
and shareholder value by ensuring further
profit growth and flexibly implementing

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

The Mitsubishi Estate Group’s Strategies

our capital policies.

Naoki Umeda
Senior Executive Officer

 usiness Performance Overview:
B
Achievement of Record-High Profit Figures in FY2022
In FY2022, the year ended March 31, 2022, Mitsubishi Estate achieved a year-on-year increase in operating revenue,
which amounted to ¥1.3494 trillion, and posted record highs for operating profit, which came to ¥278.9 billion, ordinary
profit, and profit attributable to owners of parent, which stood at ¥155.1 billion.
The rise in operating profit was primarily attributable to factors including an increase in capital gains in Japan andoverseas, the commencement of the operation of Tokiwabashi Tower, an improvement in the operating environment forhotels and retail facilities, and an expansion in incentive fee income in the Investment Management Business.
Moreover, gains on sales of office buildings and logistics facilities developed in Japan, logistics facilities in the UnitedStates, and office buildings in Vietnam contributed to capital gains. These gains demonstrated that the carefully selected
projects in which we have been investing for several years have paid off. Consistently being able to record capital gains
in Japan and overseas has become a driver of our growth.

 rogress Made in Every Business for Long-Term Management Plan 2030:
P
Achievement of Steady Profit Growth and Acquisition of Outstanding Business
Opportunities, Even amid COVID-19
Domestic Asset Business 

The unforeseen effects caused by the spread of the COVID-19 pandemic shortly after the unveiling of Long-Term
Management Plan 2030 resulted in significant negative impacts on our retail facility and hotel businesses in particular.
Today, as the lifestyles of people in Japan gradually return to the way they were before COVID-19 and as momentum
grows for Japan to fully resume inbound and outbound tourism in the near term, I sense that the retail facility and hotelbusinesses will recover completely in the not-too-distant future. Looking at offices, the fact that Tokiwabashi Tower—
which we completed in 2021—is already at almost full occupancy has confirmed the strong level of demand for

24

International Asset Business In addition to stable capital gains through the capital-recycling business, including from logistics facilities in the UnitedStates, investments in various regions are contributing steadily to profits. These include sales of an office building developed in Vietnam and a large-scale office building developed in London. With an ever-expanding lineup of projects for the
future, the international asset business has put in place a system that continuously posts high profits.
Non-Asset Business
Assets under management in the Investment Management Business have steadily expanded to ¥4.5 trillion (with a targetof ¥5.0 trillion by the mid-2020s), and the business has grown to the extent that we can expect it to generate profits of¥10.0 billion on an annual basis. Conversely, the hotel business was impacted significantly by the COVID-19 pandemic, asI have already mentioned, resulting in the recording of major operating losses in FY2021 and FY2022. However, as theoperating environment is gradually showing signs of improvement, I expect the performance of the hotel business torecover steadily in line with this trend.
In terms of new businesses, we have been implementing investments at a certain scale every year, with the aim forsaid investments to contribute to profits from the mid-2020s onward.

Over the next several years, capital gains will serve as Mitsubishi Estate’s largest growth driver as part of efforts toachieve Long-Term Management Plan 2030. The Company’s forecasts for FY2023 include large-scale capital gains. With
investments in a host of asset types progressing steadily and an extensive lineup of future development projects inJapan and overseas, we have established a structure capable of steadily and continuously delivering capital gains andincome gains. Meanwhile, given an expected upswing in inbound tourism in the near future, we are hoping to see a recovery in profits in the retail facility and hotel businesses. Furthermore, the scheduled completion of large-scale development
projects, centered on the Marunouchi area, in the latter half of the period covered by Long-Term Management Plan 2030
will also contribute to income gains. We aim to deliver steady profit growth by continuing to capture outstanding business
opportunities in Japan and overseas for achieving the goals of Long-Term Management Plan 2030.

 hanges in the Operating Environment: Maintenance of KPI Targets andCAdvancement of Business Strategies Emphasizing Efficiency and
Financial Soundness
The operating environment has changed dramatically since the formulation of Long-Term Management Plan 2030,
including the recent increase in global interest rates and Russia’s invasion of Ukraine. Nevertheless, the goals we set forthe plan emphasize efficiency and financial soundness, which are fundamental elements, irrespective of operating environment changes. Accordingly, we will maintain the plan’s strategies and goals. At the same time, I believe that changes
in the operating environment brought about by COVID-19 will require us to regulate the pace at which we proceed andthe course we take, depending on the business field.
In terms of the impact of the global rise in interest rates, the capitalization rate may be the first to be affected. For thetime being, however, the impact is limited to core properties, Mitsubishi Estate’s primary target. In selecting investment
projects for the future, we will carefully choose investments in regions and asset types that are resilient to risk andwhich can be expected to benefit from stable demand from both users and investors. Meanwhile, fund procurement
conditions are allowing us to leverage our strengths, such as our high credit rating and high fixed ratio of consolidated
interest-bearing debt (the fixed ratio stood at 86.5% as of March 31, 2022.).
While Russia’s invasion of Ukraine will not have a direct bearing on our businesses, given that we have no properties
in or near the region, we are beginning to feel the impact of price rises, including for resources and materials. With thisin mind, the Company has factored in a certain level of increases in water, heating, and lighting costs in FY2023. Turning
to construction costs, although we are implementing cost control measures, including the early placement of orders, wewill monitor future trends in a timely manner while aiming to adopt a multi-faceted response that encompasses adjusting construction plans and consulting with our partners.
Meanwhile, as rent prices and the value of real estate will rise in the event of continued inflation, albeit with a time lag,
we recognize that minor cost increases can be recouped in long run.

25

The Mitsubishi Estate Group’s Strategies

Message from the Corporate Officer in Charge of Finance & Accounting and Corporate Communications

Message from the Corporate Officer in Charge of Finance & Accounting and Corporate Communications

The Mitsubishi Estate Group’s Strategies

 apital Policies: Improvement of Corporate and Shareholder Value throughC
an Optimal Combination of Growth Investments, Asset Sales,
Shareholder Returns, and Fund Procurement
Long-Term Management Plan 2030 established KPIs with a focus on efficiency, such as return on assets (ROA), return on
equity (ROE), and earnings per share (EPS), in order to transform Mitsubishi Estate’s business portfolio into one that is
highly efficient and resilient to changes in market conditions. In FY2022, the Company achieved ROA of 4.4%, ROE of
8.1%, and EPS of ¥116.45, thereby maintaining ROE at the 8.0% level and achieving a record high for EPS. While our journey to 2030 may not be all plain sailing, we are currently making steady progress toward achieving our goals.
Under Long-Term Management Plan 2030, we are promoting flexible capital policies in response to market conditions
and aiming to improve our corporate and shareholder value through an optimal combination of growth investments,
asset sales, shareholder returns, and fund procurement. To this end, Mitsubishi Estate is promoting its business strategies while giving due consideration at all times to the balance between investments for future growth and shareholder
returns. As part of these efforts, we have steadily implemented carefully selected investments contributing to profit
growth over the past two years for achieving Long-Term Management Plan 2030. As investment demand remains solidin Japan and overseas for its core office buildings, logistics facilities, and rental housing—where cash flows are stable—
the Company will continue to simultaneously pursue profit growth through capital gains and capital recycling.
The basic stance of our shareholder return policy is to achieve a payout ratio of roughly 30.0% and execute share buybacks flexibly. Guided by this policy, we executed share buybacks to the tune of ¥100.0 billion and ¥30.0 billion in FY2020
and FY2022, respectively. Mitsubishi Estate has maintained shareholder returns at approximately 60.0% when calculated
as the total shareholder return ratio, representing a high rate of return. We will continue to aggressively advance shareholder returns that include share buybacks to the extent possible while giving due consideration to factors including
investment demand, cash flows, financial soundness, and the Company’s share price.
While the share prices of Japan’s major real estate companies are currently significantly lower than their respective net
asset value, which incorporates unrealized gains on real estate, I believe that this means there is ample room for thesecompanies’ share prices to rise over the long term. Mitsubishi Estate will also aim to improve shareholder value andincrease its share price by heightening profit growth and efficiency, the KPI targets in Long-Term Management Plan 2030.
Changes in ROA,* ROE, and EPS

Shareholder Returns

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

(Yen) (%)
200.00 12.0

200(Billions of yen) 
160

Total payout ratio since theunveiling of Long-Term
Management Plan 2030
(FY2020–FY2022): 60.1%(cumulative three-year total
shareholder return amount:¥263.8 billion)

10.0
150

100

50

5.2

5.6

6.6

3.3

3.6

52.85 60.13

74.00

3.2

7.3
86.78
3.8

7.8
96.97
4.0

8.5
108.644.1

7.6
101.343.8

8.1
116.454.4

8.0
124.75

9.0

120

6.0

80

4.4
3.0

0

0

40

0

(%)

26.5
19.4

26.6
22.1

27.0
27.7

30.0
36.0

97.4

30.9
41.6

44.6

FY2015 FY2016

EPS (left scale)
ROA (right scale)

Dividends (left scale)
Share buybacks (left scale)
Total payout ratio* (right scale)* Since FY2020, ROA has been calculated as business profit ÷ total assets (average ofthe amount at the beginning and end of the fiscal period).

90

100.0

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 2030
(forecast) target

ROE (right scale)

120

144.6

77.7
50.1
30.6

30.0

41.4

47.7

30

* The payout ratio to operating profit in each fiscal year when calculated by applying
the concept of total payout ratio

Long-Term Management Plan 2030 has adopted the improvement of shareholder value and social value as the twoprongs of its strategy. It goes without saying that Mitsubishi Estate recognizes environmental, social, and governance(ESG) considerations—which are directly connected to the improvement of social value—as one of its most importantmanagement issues. I believe that we are implementing the most advanced initiatives in the real estate industry in all
ESG-related fields. These initiatives are based on the philosophy that the implementation of ongoing ESG initiatives willcontribute to the Company’s sustainable profit growth, which will in turn improve shareholder value.
One such initiative focuses on utilizing ESG finance. We have proactively taken advantage of sustainability financeahead of our industry competitors. For example, in 2018 Mitsubishi Estate became the first comprehensive real estate26

60

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

 trategy for Increasing Social Value:
S
Continuous Contributions to Society Will Generate Sustainable Profits

company in Japan to issue green bonds in the process of procuring project funds in relation to the construction of
Tokiwabashi Tower. Then in 2020, we concluded an agreement with The Norinchukin Bank to borrow funds through asustainability-linked loan, a first for the real estate industry in Japan. In further examples, we concluded a positive
impact finance loan agreement in 2021 and became the first company in Japan to issue sustainability-linked bonds
based on the Net-Zero Standard of the Science Based Targets initiative in 2022. Given the recent strong demand for ESG
finance from investors, I feel that the Company’s advanced sustainability initiatives are playing a part in enabling it toprocure funds on favorable terms.
Mitsubishi Estate has a long history, during which it has grown by consistently engaging in projects that seek to contribute to society from a long-term perspective in every era. We will continue unfailingly to advance projects looking
ahead to the future. When assessed over the long term, I believe that contributing to society leads to the sustainablegeneration of profits, as our history proves. I am certain that focusing with conviction on improving social value also
improves Mitsubishi Estate’s corporate value.

0 y Mission as the Corporate Officer in Charge of Finance & Accounting andM
Corporate Communications: Achievement of Further Profit Growth While
Dispassionately Assessing the Operating Environment and Adjusting Course
When Required
I believe that Mitsubishi Estate’s current endeavors can be grouped into two categories. The first is maintaining andexpanding stable income gains in the Marunouchi area. Based on our pride in Marunouchi’s status as Japan’s flagshipoffice area, we will build a more robust portfolio by reinvesting the cash we generate, even amid low domestic economic
growth. The second is creating new growth pillars. Although we have already expanded profits in a variety of businessdomains outside Marunouchi, including our domestic capital-recycling business, International Business, and Investment
Management Business, we will proactively invest in new businesses in tandem with developing assets and investing inreal estate in Japan and overseas in order to enable us to achieve further profit growth. Naturally, given the vital importance of determining whether our efforts strike an appropriate risk–return balance, I regard it as my mission, as thecorporate officer in charge of finance & accounting and corporate communications, to carefully assess whether we are
overreaching or moving in the wrong direction and to adjust course accordingly.
Listening earnestly to what shareholders, investors, and all other stakeholders have to say and pursuing resilientbusinesses that earn the endorsement thereof will generate profits over the long term, which in turn will satisfy shareholders and investors. I will thus continue to fulfill my mission in my position to maintain such a positive cycle.
Accordingly, we ask for your continued support in our endeavors.

27

The Mitsubishi Estate Group’s Strategies

Progress of Long-Term Management Plan 2030

International Asset BusinessBusiness Profit

Domestic Asset BusinessBusinesses 
Domestic offices, retail facilities, outlet malls, logistics facilities, airport operations, Residential (condominiums, rental apartments, etc.), and others(Billions of yen)
250

Outline of Profit Growth Income gains in the domestic asset business were
impacted by the COVID-19 pandemic, centered onretail facilities, and profits decreased due to theclosure of buildings scheduled for redevelopment.
At the same time, capital gains on every asset typeexceeded expectations.

200

201.5

150

33.0
14.7

The Mitsubishi Estate Group’s Strategies

215.8

201.6

47.0

39.0
16.7

25.3

153.8

145.9

143.4

50

100

57.0
5.0

141.4

94.0

80

Outline of Profit Growth 
The international asset business is putting in placea system to steadily achieve income gain growthand increase capital gains in every region. We aim
to evolve the portfolio of the international asset
business into one that is resilient to market conditions
through diversified investments in many regions.

203.4

100

60

55.8
46.1

37.9

40

28.0

65.0

29.0

12.0

20

25.9

26.8

29.0

FY2021

FY2022

FY2023 (forecast)

18.1

0

FY2020

Income gains

Capital gains

0

FY2020

Income gains

FY2021

FY2022

Domestic condominiums and other housing

FY2023 (forecast)

Income Gains / Regional Conditions

Capital gains

Achievement of Growth Exceeding ¥10.0 Billion Compared with FY2020 through Income Gains in Every Region
United States:	The increases in both profits resulting from the renovation of our flagship building in Manhattan, 1271 Avenue of theAmericas, and profits in conjunction with hybrid-model investments, a collaboration with the Investment Management
Business, contributed to income gain growth.
Europe:	Although income gains due to the sale of properties and the closure of buildings for renovation have declined temporarily, anabundance of new projects, including large-scale projects, are scheduled to steadily contribute to profits.
Asia:	The international asset business is expanding the scope of its business activities into new countries (including Indonesia, Vietnam,
Thailand, and Australia), beginning with condominiums. Meanwhile, development projects in a variety of regions are progressing.

Income Gains
Despite being affected by the COVID-19 pandemic, retail facilities and outlet malls are recovering steadily. With the unveiling of several largescale redevelopment projects, preparations are in place to achieve profit growth in the latter half of Long-Term Management Plan 2030.

Capital Gains
Returns on assets exceeded expectations. We also steadily sold underperforming assets to improve our efficiency indicator.
Capital gain results: The domestic asset business recorded ongoing capital gains centered on offices, logistics facilities, and rental housing.

Capital Gains
FY2021¥39.0 billion

Office:
Logistics:
Residential:

¥24.0 bn¥8.0 bn¥7.0 bn

FY2022¥47.0 billion

Link Square Shinjuku (partial ownership)LOGIPORT KAWASAKI BAYResidential Business: Sold 6 properties

Office:
Logistics:
Residential: everaging the contribution of its capital-recycling business in the United States (¥10.0 billion–¥20.0 billion annually), the internationalL
asset business seeks to stabilize and further expand capital gains through the ongoing contribution of its capital-recycling business in
Europe and the expansion of its portfolio in Asia.
Major sales of properties and returns from FY2021 to FY2023: Supported by a favorable market for property transactions, the international asset business has secured high returns, with a focus on logistics facilities in the United States, a forte of the Company.

¥35.0 bn¥7.0 bn¥5.0 bn

Toyosu Front (partial ownership)
Residential Business: Sold 4 properties

Harvill
Location: California
Use : Logistics
Building Scale:
Approx. 31,000 m2
EIRR: Over 100%

LOGIPORT KAWASAKI BAY

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Sale of underperforming assets
FY2020: Otemachi Park Building (partial ownership) and Atagawa Villa Project
FY2021: Corowa Koshien; FY2022: Grand Front Osaka (partial equity interest)

Project Lineup

Project Lineup

 espite a difficult operating environment for acquiring projects, the domestic asset business fully mobilized the Mitsubishi Estate Group’sDsourcing capabilities to accumulate projects with a focus on offices and logistics facilities that will serve as a source of future profits.
These efforts have resulted in the steady expansion of the domestic asset balance of the asset-recycling business.

 nited States:UEurope:Asia:

Property Name
(Including Tentative Name)*1

Marunouchi

Japan

Mixed-use
offices

Outlet malls

Total Floor
Area*2

FY2022

Tokiwabashi Tower (Building A)

146,000 m2

Completion

Uchikanda 1-chome Project

85,200 m2

Yurakucho Building and Shin-Yurakucho
Building Reconstruction Project

FY2023

FY2025

FY2026–Start
construction

544,000 m

14,700 m2

Start
construction

Osaka Mitsubishi Building
Reconstruction Project

67,000 m

Start
construction

Toyosu 4-2 Development Project

136,500 m

IMS Reconstruction Project*3 4,600 m2

Umekita Second Zone Development
Project (Rental Property)

378,450 m2

Former Hotel Grand Palace Site
Redevelopment Project*3 6,600 m2

Akasaka 2 · 6-chome Development
Project
FUKAYA HANAZONO PREMIUM
OUTLETS®

210,000 m2

KYOTO JOYO PREMIUM OUTLETS®

*3 245,000 m2

Tokyo Ryutsu Center Distribution
A Building

205,000 m2

Completion

Completion
Completion
Start
construction

2

34,500 m2

Estimated NOI Estimated(StableInvestment
Operation)

Under consideration

2

2

2030

Completion*3 107,000 m2

Torch Tower (Building B)

Kyoto Joyo Next-Generation Core
Logistics Facility Project

FY2024Start
construction

Minami-Aoyama 3-chome Project

Logicross Zama
Large-scale
logistics
Sagamihara-shi Chuo-ku Fuchinobe
facilities
Project(100,000 m2+)
Misato-shi Hikoito Project

Completion
Start
construction

Under consideration
Gradual completion and opening

Approx.
¥65.0–¥70.0
billion

Under consideration
Start
construction
Start
construction

Approx.
¥1.0–¥1.1
trillion

Under consideration
Start
construction

Expansion of investments in logistics facilities and rental housing, two of the Rockefeller Group’s strengths
Expansion of the portfolio into continental Europe, centered on a large-scale project in London
Progression of development projects in a variety of regions

Type

Trinity Tower (Indonesia)
Office, Commercial
ALPHA PARK (China)
OfficeCapita Spring (Singapore)
Mixed Use
Suzhou New District Business Park (China) Office
Yoma Central (Myanmar)
Mixed Use
Asia
Office,180 George Street (Australia)
Commercial
One City Centre (Thailand)
Office, Commercial
Parkline Place (Australia)
Office, Commercial
Oasis Central Sudirman
Mixed Use
(Indonesia)
Warwick Court (London)
Renovation
8 Bishopsgate (London)
Office, Commercial
Europe dMoura1 (Spain)
OfficeFyrkanten 11 (Sweden)
Renovation
60-72 Upper Ground (London) Office, Commercial
Stateline 77 Building 1 and 2
Logistics(South Carolina)

Completion

U.S.

Total Floor
Area*2
143,200 m2
233,600 m2
93,400 m2
220,400 m2
212,700 m2

116,000 m2
65,900 m2–

2030

Estimated NOI Estimated(StableInvestment
Operation)

Completion
Under consideration

Completion
Completion
Start construction

Completion
Start construction

Completion

Completion
Completion
Completion
Start construction

Completion
Completion

Approx.
Approx.
¥30.0 billion ¥400.0 billion

Completion

Logistics*3 42,200 m2

Completion

55 Paradise(New York)

Logistics*3 16,700 m2

Start construction

Virginia Data Center Building(Building 1)

Data Center

Virginia Data Center Building(Building 2)

Data Center

Liv Crossroads(Arizona)

Completion
Start construction

Completion*5 51,000 m2
Start construction

Liv Laveen(Arizona)

173,000 m

Completion

1158 Delaware(Colorado)
Under consideration

1072 West Peachtree(Georgia)

Mixed Use

*3 49,300 m2

Completion

600 Fifth Street NW(Washington, D.C.)

Office*3 37,000 m2*2 Total floor area unless otherwise noted*3 Site area

Start construction

Hanover(Pennsylvania)

Completion

Start
construction

FY2026

Completion

2

Start
construction

277,000 m2

FY2025Completion* 93,600 m
3

FY2024Completion

29,000 m2
85,000 m2
3* 11,000 m2*3 7,800 m2*4 10,400 m2

Start
construction*3 54,000 m2

FY2023307,000 m2

178,700 m2
2

FY2022*3 55,000 m2

RentalApartment
RentalApartment
RentalApartment

Completion

Central St. Giles
Location: London
Use: Office
Building Scale:
Approx. 66,000 m2
EIRR: Over 10%

Capital Place
Locations: Hanoi,
Vietnam
Use: Office
Building Scale:
Approx. 151,600 m2
EIRR: Over 30%

Property Name (Country)*1

Completion

Project announced after Long-Term Management Plan 2030
*1 Includes properties expected to be sold by 2030

28

(Billions of yen)

Business International Business (including residential business operations overseas)

Business Profit

356 Units

Start construction

360 Units

Start construction

250 Units

Completion

Completion
Start construction

Completion

Start construction

Project announced after Long-Term Management Plan 2030
*1 Includes properties expected to be sold by 2030
*2 Total floor area unless otherwise noted

Completion
Start construction

Completion*3 Leasable area
*4 Site area
*5 Total of two buildings

29

The Mitsubishi Estate Group’s Strategies

Progress of Long-Term Management Plan 2030
Non-Asset (Fee-Based) Business

Sustainability
In FY2022, Mitsubishi Estate significantly revised its targets regarding CO2 and other greenhouse gas (GHG) emissions, the percentage of electricity it sources from renewable energy, and its percentage of female managers.
Note: Please refer to the table on pages 104 and 105 for information on other major KPIs.

Business Profit

CO2 and Other GHG Emissions(Billions of yen)

Businesses 
Hotel management (including Royal Park Hotels andResorts), investment management, architecturaldesign & engineering, brokerage, and others

40

32.2

30

12.3

20
10

15.7

9.3

12.2

10.7

4.4

5.9

(0.9)

(7.3)

FY2020

FY2021

0–10Reduction of CO2
and other GHG
emissions

11.0

26.5

2050 targets

87% reduction(compared with FY2018)

SBTi’s scenarios

Less than 2 ºC scenario

13.0
(6.7)

Investment Management Business

FY2022(3.0)
FY2023 (forecast)Hotel management business*1 Reduction within the Group’s value chains

The Mitsubishi Estate Group’s Strategies

5,000

While the effect of COVID-19 has been substantial, we
expect the performance of the hotel management business to recover in step with the projected normalizationof demand for travel in Japan and the recovery in
inbound demand as well as the effects of management
reforms, such as
the restructuringof our hotel operating companies.

(Rooms)

4,000

4,414

4,038

Scope 1 and Scope 2
reduction ofat least 70%

3,533

3,000

2,534

1,000

2,434

4.8%
7.5%

Reduction of
more than 90%
Neutralization ofless than 10%

2,809
2,434

1.5 ºC scenario(New Net-Zero Standard)

Scope 3
reduction ofat least 50%

2,000

3,399
3,000
2,000

87.7%

0

FY20201,000
0Scope 1FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2021

Scope 2

FY2031 target Neutralization
2050 target

FY2022

Scope 3

FY2022

FY2023(forecast)

The Royal Park Canvas The Royal Park Hotel
Sapporo Odori Park
Iconic Kyoto

Investment Management BusinessChanges in AuM (Billions of yen)

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

At the Time of the Announcement ofLong-Term Management Plan 2030

The Investment Management Business saw
a significant increase in profits in FY2022,
January 2020)
ノン アセット事(Announced
業
partly as a result of posting substantial
Japan
1,720
incentive fees associated with a rise in the
Asia and
Oceania
market valuation of its United States fund.
40
EuropeJRE
350
Fee income, which provides the foundation
1,020
for the business, has grown to a level
Total:
Approx. ¥3.1 trillion
enabling the consistent recording of busiU.S.
MJIA
ness profit of ¥10.0 billion thanks to theOverseas
1,000
700
1,390
expansion of assets under management(AuM).

Domestic: As of end of Mar. 2022;
Overseas: As of end of Dec. 2021

Percentage of Electricity from Renewable Energy Sources

Asia and Oceania
130

Overseas
2,430

MJIA
1,000

2050
(2030 target: 25%)

FY2026
RE100 achievement100

FY2023
50%

40

31%

20

As part of our efforts to create new businesses, we have established seven focus areas: 1) agriculture; 2) renewable energy; 3)
infrastructure, public and private partnerships (PPPs), and private finance initiatives (PFIs); 4) real estate-related services; 5) content, entertainment, and sports; 6) tourism, inbound-related businesses, and regional revitalization; and 7) healthcare and food, withthe aim of creating new sources of earnings.

0

1.1%

3.1%

FY2020

FY2021

FY2022

FY2023

FY2026Percentage of female
managers

Mitsubishi Estate’s New Businesses

Agriculture
Renewable energy

Biomass power generation business

Infrastructure, public and private partnerships(PPPs), and private finance initiatives (PFIs)

Tourism, inbound-related businesses, andregional revitalization

Healthcare and food302030 target

FY2051

Revised Targets

Upward revision

10%

FY205140%

New target
FY2031
20%

30
20

  

FY204130％

Previous targets
10

FY2031: 20%
FY2041: 30%
FY2051: 40%

Examples of Initiatives

(%)
50
40

Real estate-related services
Content, entertainment,
and sports

FY2031

 uring FY2023, Mitsubishi Estate plans to increaseD
its use of electricity from renewable energy sources
not only in the Otemachi, Marunouchi, and Yurakucho
areas but also at approximately 50 Company-owned
office buildings and retail facilities in the Tokyo
metropolitan area and in the city of Yokohama.
As a result, we expect to raise the percentage ofelectricity we source from renewable energy to 50%.
Accordingly, the Company aims to achieve RE100 by
FY2026.

Previous Targets
Investment Targets

FY2026Percentage of Female Managers

Status of Initiatives for New Businesses
Focus Areas

Previous targets

80
60

Creation of New Businesses

Moved forwards­ ignificantly

Examples of Initiatives

(%)
120

Japan
2,100

Revised Targets

Previous Targets

RE100 Achievement time line

JRE
1,100

Total:
Approx. ¥4.5 trillion
U.S.
1,800

Scope 1:	Direct GHG emissions by business operators
Major emissions : Utilization of gas (approximately 96.5%)
Reduction methods :	Expectations of new energy sources and technologies (carbon-neutral gas, etc.)
Scope 2:	Indirect GHG emissions from the use of electricity,heat, and steam supplied by other companies
Major emissions :	Utilization of electricity (approximately 79.4%)
Reduction methods :	Switch to electricity from renewable energy sources(FY2022 result: approximately 31%):	Indirect emissions other than those of Scope 1 andScope 3
Scope 2Major emissions : 1 Future emissions through sold properties*(approximately 41.3%, Category 11)
2 Emissions associated with capital investments
		(approximately 42.8%, Categories 1 to 3 )Reduction methods :	 1 Reduction resulting from reducing Scope 2
emissions
2 Calculation of CO2 emissions volumes during the		production of construction materials andachievement of reduction thereof through theuse of low-carbon construction materials*C alculation method: Floor area sold × Intensity (t-CO2/m2/year, Scope 1 andScope 2) for the previous fiscal year × 50 years

As of End of FY2022

Europe500

Net-zero emissions
Reduction within the Group’s value chains*1:
More than 90%
Neutralization*2: less than 10%

Breakdown of CO2 Emissions and Major Reduction
Strategies (FY2022 Results)

5,000

4,129

(all within the Group’s value chains*1)*2 Neutralization of residual emissions that cannot be fully reduced by using forest absorption, carbon-removal technology, and other methods(Thousands of tons)

Number of Rooms at Royal Park Hotels (published projects)

3,815

Net-zerodeclaration
More stringent
scenarios

Reduction of at least
50%

Other businesses

Hotel Management Business

4,000

Reduction of at least
70%

35% reduction(compared with FY2018)

FY2031 targets
21.0

Outline of Profit Growth 
Although the hotel management business was significantly affected by COVID-19, the non-asset business realized an increase in profits by expanding
assets under management (AuM) and posting incentive fees in the Investment Management Business.

Revised Targets
Scope 1 and Scope 2
Scope 3

Previous Targets

50

5.8%

6.6%

7.2%

Beginningof FY2021

Beginningof FY2022

Beginningof FY2023

0

FY2031

FY2041FY2051

 nhancement of the personnel system with the aim ofE
developing a working environment where women canhave a good work–life balance (please refer to page 65)
Strengthening of the recruitment of mid-career
female employees at the assistant-manager level
Establishment of a working group for heightening
the active participation of women in the workplace
Holding of events to promote networking amongfemale employees
Implementation of seminars on women’s health aspart of training for managers

31

The Mitsubishi Estate Group’s Strategies: Domestic Asset Business

Completion of Tokiwabashi Tower
Enriching working lives by offering enhanced communal spaces,
innovations that promote networking, and the latest digital technologies

Proposing New Workstyles
Enhanced Communal Areas

MY Shokudo
On the third floor of Tokiwabashi Tower, we have created MY Shokudo, acommunal cafeteria lounge for tower workers. The cafeteria lounge has
four zones, each with different concepts and menus, which support thewell-being of workers while increasing their choice of places to work andeat. In addition, MY Shokudo offers a variety of programs and services
facilitating communication among workers.

Cafe zone

Dining zone

TOKYO TORCH App for Tokiwabashi Tower

Smartphone authentication

Team-building program

Mind-enriching program

Implementing Digital Technologies

Exclusive TOKYO TORCH App for Tokiwabashi
Tower Workers

The Mitsubishi Estate Group’s Strategies

Mitsubishi Estate introduced an app exclusive to tower workers that
supports comfortable office lifestyles, a first for the Company. Using
the TOKYO TORCH App for Tokiwabashi Tower, workers can perform avariety of functions, such as making orders and payments at the cafeteria and reserving conference rooms. The app also supports theworking lives of tower workers in a number of ways, such as throughidentity authentication when entering the building and for receiving
daily event information.

Facilitating Interactions and Networking in Communal Spaces

Team-Building and Mind-Enriching Programs

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Tokiwabashi Tower offers team-building programs that enhance teamunity and which allow team members to cook and eat together, as well aswellness and beauty-related services for tower workers, such as yoga
and nail care. Creating opportunities for new interactions and offering
services that utilize office space allow us to boost people’s motivation for
coming to Tokiwabashi Tower and enhance its appeal as a place to work.

COMMENTThe First Stage of TOKYO TORCH (the Tokyo Tokiwabashi Project)
Mitsubishi Estate completed the construction of Tokiwabashi Tower in June 2021. The tower is the first of the Company’s district projects within TOKYO TORCH, which it is developing in front of the Nihonbashi Gate of Tokyo Station. TOKYO TORCH is alarge-scale redevelopment project entailing the construction of three buildings and the creation of TOKYO TORCH Park, a large
plaza approximately 7,000 m2 in size, without interrupting the functions of the district’s existing infrastructure, including its
sewage pumping station and electricity substation. Another project that will be located within the TOKYO TORCH district is Torch
Tower, which is slated for completion in FY2028. Torch Tower will have an outdoor observation deck, a world-class hotel, and alarge-scale entertainment hall. Promoting TOKYO TORCH under a project vision of “bringing light and energy to Japan,” we havepositioned Tokiwabashi Tower as a symbol that will enrich working lives into the future. In terms of what Tokiwabashi Tower
features, we have prepared a host of innovations to realize enriched workstyles, such as the creation of enhanced communal
spaces for those working at the tower, implementation of the latest digital technologies, and provision of programs to promote
networking, including team building.
We are also rolling out initiatives communicating the appeal of Japan’s regions by utilizing Tokiwabashi Tower’s location in
front of the Nihonbashi Gate of Tokyo Station, which offers excellent access to bullet trains. At TOKYO TORCH Park, we are
devoting efforts to conveying the cultures and appealing aspects of various regions in collaboration with local governmentorganizations across Japan. Examples of these efforts include creating a pond with koi from Ojiya City in Niigata Prefecture andusing natural grass from Tsukuba City in Ibaraki Prefecture.

32

Aiming to Make TOKYO TORCH a District That “Brings Light and Energy
to Japan”
TOKYO TORCH offers experiences previously unavailable at workplaces. We will continue deploying a diverse array of plans and events that allow those working in the district to experience
exciting added value, so that they enjoy coming to their office in TOKYO TORCH, rather thanviewing it simply as a place to work.
In addition to providing infrastructure, Mitsubishi Estate has partnered with Orizuru Tower(Hiroshima City), organized events at which centers of arts and crafts from across Japanassemble, and held TOKYO TORCH Market. Acting as a hub and working closely with partners inmutually beneficial ways have helped us comprehend the potential impact of our activities.
Planning Unit
Going forward, we hope to enhance the appeal of other properties by applying the knowTOKYO TORCH Department
how and relationships we have developed here.
Mitsubishi Estate Co., Ltd.
At TOKYO TORCH, we have also interacted frequently with next-generation students, fromManagerelementary school children to college students, through activities including social studies
field trips and lecture visits. In the summer of 2022, the district will see the opening of a
Koji Tanaka
Chisato Suzuki
store called Another Japan—stores specializing in regional products that employ college(left)(right)students from Japan’s regions as managers—in a joint project with Nakagawa Masashichi
Shoten (Nara City), a traditional crafts store with a 300-year history.
The completion of Torch Tower in FY2028 will also complete the transformation of TOKYO TORCH into a single district that will attract greaternumbers of visitors with attractions including an outdoor observation deck and a large-scale entertainment hall. We aim to continue efforts toensure TOKYO TORCH communicates the appeal of various regions and thereby indeed becomes a torch “bringing light and energy to Japan.”33

 GII’s Logistics Facility Development Capabilities and Promotion of Cutting-Edge
R
Initiatives

HarvillWith a track record of undertaking roughly 40 projects covering approximately two million m2 in the United States to date, RGII has
established a leading position as a developer thanks to the strong sourcing and development capabilities it has cultivated throughsuccessful development projects, particularly in the major logistics markets of New Jersey and California (Inland Empire).
Furthermore, RGII has in recent years carried out facility design and construction planning in accordance with regulations
pertaining to environmental conservation, such as by utilizing reusable building materials, introducing highly energy-efficientequipment, and implementing process control to minimize waste volumes. Moreover, in response to labor shortages in facilities in
the post-COVID-19 era, RGII aims to design facilities with ceilings of sufficient height to facilitate the introduction of logistics robots.
To address the shortage of delivery drivers, RGII is implementing efficient parking trailer layouts in facility designs in order toreduce waiting times and improve overall transportation capacity. In these ways, RGII is promoting facilities that address social
needs, including on-site issues and environmental, social, and governance (ESG) matters.

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

The Mitsubishi Estate Group’s Strategies

RGII’s Track Record of Developing Logistics Facilities in Recent Years
List of Logistics Facilities
Gross Floor Area (m2)Year of Completion

EdisonFacility NameNew Jersey

84,0002020

Centerpointe Commerce Center (Moreno Valley)

California

19,0002020

Lehigh Valley (Allen)

Pennsylvania

120,000

2020

Fontana (Santa Ana)

California

27,0002020

The Mitsubishi Estate Group’s Strategies: International Asset BusinessOtay Mesa

California

11,0002021

Braselton Broadway

Georgia

21,0002021

Development of Logistics Facilities
in the United States

Middlesex

New Jersey

37,0002021

Harvill

California

31,0002021

Val Verde

California

27,0002022

Stateline77 (Eubanks)

South Carolina

94,0002022

Lehigh Valley (Hanover)Pennsylvania

42,0002022

55 Paradise Lane

New York

16,0002022

Eastampton

New Jersey

32,0002022

Jesse Cronic

Georgia

39,0002023

Woodbury

New York

14,0002024

Spotswood

New Jersey

61,0002024

Frontage Rd

South Carolina

77,0002023–2025

Middlesex

Lehigh Valley

Val Verde

EdisonProactively Promoting the Development of Logistics Facilities to Meet Growing
E-Commerce Demand
Since its establishment in 1928, Rockefeller Group International, Inc. (RGII), has undertaken numerous development projects in
the United States, such as the Rockefeller Center in Manhattan, New York. Mitsubishi Estate acquired a stake in RGII in 1990 andconverted it into a wholly owned subsidiary in 1997. Today, as the cornerstone of the Mitsubishi Estate Group’s International
Business development efforts, RGII develops a variety of assets such as office buildings, residential housing, logistics andmixed-use facilities, and other properties in the United States, which is and will be a high growth market going forward.
Specifically, the logistics facility market in the United States is in a growth phase, having developed in step with the expansionof the e-commerce market. As a result, we are seeing an increase in the need for logistics facilities with advanced equipment infavorable locations with large working populations and excellent transportation access. Moreover, a tightening of the balance
between supply and demand for new logistics facilities caused by the sudden expansion of e-commerce and third-party logistics*
due to the impact of the COVID-19 pandemic has made the further development of such facilities an urgent priority. Blessedwith local employees in various bases who have extensive development experience, RGII has a structure in place to steadilyacquire new projects and drive forward businesses by leveraging its abundant know-how and networks. Deploying thesestrengths, RGII is proactively working to develop logistics facilities to meet growing demand. Most recently, in the spring of2022, RGII acquired a site for a logistics facility in North Las Vegas, Nevada, which is a promising market with geographicalcharacteristics enabling same-day travel between the facility and major cities on the West Coast of the United States and
Mexico. Going forward, RGII will build an even stronger portfolio by promoting the acquisition of projects in such new markets.
* Third-party logistics: Third-party logistics providers endeavor to carry out some or all of a shipper’s logistics services on its behalf.

34

Location (State)

COMMENT

Driving the Growth of the International Business by Utilizing
My Experience in Logistics Facilities in the United States
RGII plays a core role in the growth of the International Business for the Mitsubishi Estate Group.
Based on the income gains from our two flagship office buildings in Manhattan, we have achieved
stable business promotion and management—even amid uncertain political and economic trends—
by generating capital gains from our short-term development projects. Of the Japanese developers to have made inroads into the United States market, only the Mitsubishi Estate Group has
incorporated a local American company. The Group is working proactively to pioneer markets andpromote development through local employees with a wealth of experience, expertise, and networks in various real estate markets in the United States.
Senior Director
In addition to the East Coast (New Jersey) and the West Coast (California) where we haveRockefeller Group International, Inc.
­accumulated track records, we are rapidly advancing into new markets, such as the Southeast
Ayumi Asamiof the country (Atlanta), where we have a base, and the aforementioned North Las Vegas area,
under a policy of expanding revenues by drawing on the development know-how we have­cultivated thus far.
The real estate market in the United States is seeing brisk activity, reflecting both population
increases in certain markets on the back of changes in industrial distribution and robust private investment and consumer sentiment. Given
these circumstances, I feel there is still ample room for growth. I am attracted to the idea of utilizing the operational experience I have gainedin such a dynamic and vibrant market in real estate businesses at other based in the world. Also, I want to contribute to businesses in which
I can integrate my experience with that of the Group’s in global real estate development for developing new asset types as well as tobusinesses that create new services and spin off new businesses. Going forward, I aim to utilize the experience I have acquired at RGII tocontribute to the development of the Group’s real estate business as a whole and to create business solutions.

35

The Mitsubishi Estate Group’s Strategies: Non-Asset Business

Entry into the 5G InfrastructureSharing Business
Facilitating the Adoption of 5G Infrastructure in Cooperation with Nationaland Local Governments and Real Estate Owners

The Mitsubishi Estate Group’s Strategies

Mitsubishi Estate has positioned fifth-generation (5G) telecommunications systems as social infrastructure that will be integral
to urban development going forward. Based on this approach, the Company entered into a 5G infrastructure-sharing businessin January 2022 to build such infrastructure and offer it to several mobile network operators.
Viewing the business as key to realizing the Mitsubishi Estate Digital Vision, we will strive to build 5G infrastructure that will
become the foundation of next-generation urban development. This will be achieved by utilizing our area management andbuilding operation and management know-how and leveraging the bargaining power of administrative bodies while cooperatingwith the national government, local governments throughout Japan, and real estate owners.
Home

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Participation in meetings
using telepresence robots

Indoor areaHome

As building out 5G infrastructure environments enables the verification and realizationof a variety of services, all services with digital elements will benefit from the infrastructure. Mitsubishi Estate aims to realize a new form of urban development complete withenvironments allowing for people and companies to assemble, meet, and interact
online and offline, including through new office services and visitor services, infrastructure for use during disasters, and the efficient management of buildings.

Further Promotion of Hybrid Work
High-definition images and virtual-reality technology thanks to 5G will enable the sharing of physicalspaces and of the senses with remote locations, further increasing the sophistication of teleworking tofacilitate the provision of new workstyles and lifestyles.

Office5G

5G

Provision of Shopping and Viewing Experiences from Remote Locations

Mutual cooperation
between bases
Security robots, drones, remote shopping experiences, e-sports
tournaments, alignment with location information, etc.

Telepresence robots, virtual-reality meetings,
high-performance meetings, etc.

Mutual cooperation
between bases

Mutual cooperation
between bases

Art gallery

Large outdoor space

5G infrastructure will enable immersive viewing and event participation from remote locations. It will also
facilitate remote shopping through high-definition video and two-way communication with store clerks.

Utilization of Robots

Remotestreaming

36

Remote shopping
experiences

The Future We Will Create through 5G Infrastructure Buildouts

5G

The provision of 5G infrastructure will allow the remote control and operation of multipurpose robots,
such as transportation and telepresence robots. Such infrastructure will advance efforts to examine
alternatives to the performance of high-precision tasks by humans through the remote operation ofmachinery and tools.
5G

Development of Safe and Secure Disaster Preparedness

Mutual cooperation
between bases
Remote streaming, remote viewing, etc.

Transportation robots, event broadcasts, location
information alignment

Schools, etc.

5G infrastructure will facilitate the real-time monitoring of conditions at evacuation centers during
disasters, enabling rapid and smooth decision-making and responses in emergencies. For example, theinfrastructure will help with efforts to direct people to suitable evacuation centers in accordance withcrowding levels, to deploy rescue workers appropriately, and to choose the required amount and type of
emergency supplies.

Remote viewing

 rawing on the Mitsubishi Estate Group’s Know-How and Strengths to Realize 5G
D
Infrastructure Build-Outs
5G telecommunications systems offer higher speeds, higher capacities, lower latencies, and more simultaneous multiple connections than fourth-generation (4G) communications systems. On the other hand, their use of high frequencies necessitates
the installation of a greater number of base stations and antenna facilities, while physical and landscape restrictions on installation spaces make it difficult to install such stations and facilities quickly. In addition, communications operators have faced
issues including increasing fixed asset investments when advancing installations separately.
To address such issues, the Mitsubishi Estate
Pylons and Rooftop Poles
Group is drawing on its real estate business asAs a single shared infrastructure can emit 5G
well as its area management and building operaradio waves for all mobile network operators,
5G coverage areas can be established whiletion and management know-how to offer 5G
Antennas
utilizing idle space efficiently.
coverage for entire urban areas efficiently and at
The construction of infrastructure for shared
use avoids wasteful investments for society as
minimal investment. Furthermore, as these efforts
a whole, thereby facilitating the rapid expansion
utilize idle space on real estate, we are offeringof 5G coverage areas.
Antennas
financial benefits to real estate owners in the formof usage fees while helping raise the value ofLand, buildings,
pylonsurban areas by providing radio wave environThe internet, etc.
ments that encompass surrounding areas rather
Antenna Base station
than just individual facilities. Going forward, weapparatus
apparatus
Mitsubishi Estate
will realize new lifestyles and urban developmentby building social infrastructure to operate a suite
1 Sharing of rooftop poles,
2 Installations by various mobile network operatorspylons, etc.
of services and applications using 5G.

COMMENT

Creating a New Business to Realize Japan’s World-Leading
Urban Development
Guided by its mission to contribute to society through urban development, Mitsubishi Estateengages in a range of businesses, one of which is the 5G infrastructure-sharing business.
Through this business, we improve telecommunications infrastructure environments in cities
with our partners. I believe that we are unique among developers to have engaged in the telecommunications field to such an extent. I am sure it is because we have consistently sought toenhance the value of urban areas that we were able to promptly enter the 5G infrastructuresharing business. For me, our mission is to further promote this business so we can maintainour presence as a pioneering company in urban development that boldly tackles business
Manager, DX Promotion
Manager, DX Promotion
expansion into such new domains.
Department
Department
5G Infrastructure5G InfrastructureThis business benefits mobile network telecommunications operators by minimizing their
Sharing Business
Sharing Business
investments through infrastructure sharing while also offering advantages to building
Mitsubishi Estate Co., Ltd.
Mitsubishi Estate Co., Ltd.
owners, such as allowing them to utilize idle space effectively and improving the asset valueof their buildings. Regarding visitors to urban areas, meanwhile, 5G infrastructure sharing
Yosuke Muramatsu
Akinori Ogasawara
brings the advantage of allowing the users of any cell phone carrier to easily enjoy the conve(left)(right)nience of a 5G service. For Mitsubishi Estate, this endeavor is significant in that it has led tothe establishment of a new revenue-generating business. Accordingly, I am convinced the 5G
infrastructure-sharing business delivers a high level of social value and creates a win-win model for all parties. The possibilities for thetypes of services and contents that 5G will create are endless, while the infrastructure built through the business will also contribute to theachievement of our mission to accumulate data from physical environments and solve customer issues based on such data, as set forth in
the Group’s Digital Vision. I aim to continuously improve our urban development by building on said efforts.

37Business Model Features
1

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

The Mitsubishi Estate Group’s Strategies

The Mitsubishi Estate Group’s Strategies: Sustainability

Toward the Achievement of a
Decarbonized Society

Contributing to the Achievement of the Mitsubishi Estate Group’s Sustainable Development Goals 2030
MEC Industry’s business activities contribute to the achievement oftargets under the key theme of “Environment” in Sustainable
Development Goals 2030, which the Mitsubishi Estate Group is promoting. This is achieved through the reduction of CO2 emissions via
carbon fixation due to the effective utilization of domestic timber.

Establishment of MEC Industry Co., Ltd.

Note: For details on the goals, please refer to pages 104 and 105.


Buildinga Seamless Business Model from Manufacturing to Sales for Achieving a
Decarbonized Society through the Use of Timber
Aiming to realize a society that utilizes timber, MEC Industry Co., Ltd., was established in January 2020 with investment fromseven companies: Mitsubishi Estate Co., Ltd., TAKENAKA CORPORATION, DAIHO CORPORATION, MATSUO CONSTRUCTION CO.,LTD., NANGOKU CORPORATION, KENTEC CORPORATION, and Yamasa Mokuzai Co., Ltd. Spurred by soaring construction costs
that had continued since approximately 2010, Mitsubishi Estate began testing the viability of wooden construction in order tocapture new business opportunities and establish a competitive advantage. The Company commercialized MEC Industry following
the selection of the business through the in-house New Business Proposal System in 2016. Integrating a previously fragmented
business model, from manufacturing through to sales, by combining the strengths of the seven companies and establishing
MEC Industry’s own plant have enabled the provision of high-quality products at low cost.
The entire forestry industry in Japan is facing many issues, such as the harvesting and utilization of domestic timber thathas reached maturation and industry-wide labor shortages. Through the utilization of domestic timber, MEC Industry will solvethese issues while developing businesses with the aim of achieving a decarbonized and sustainable society.

Overview of Businesses
1

MOKUWELL Business“MOKUWELL” is a portmanteau of the Japanese word for “wood” (moku) and the English
word “wellness.” The MOKUWELL business offers MOKUWELL houses—standardized
detached houses—built using the prefabrication method of construction, in which standardized units manufactured at a factory are assembled on-site. This simple construction
method reduces the workload at construction sites and construction periods, thereby significantly boosting productivity.
3

2

Building an Integrated and Optimized Business Model

The subdivision of the roles (functions) of companies within the forestry and timber industries leads to costs specific to each business domain, driving up the price at which timber isoffered to end users. In addition, the segmentalization of each process makes it difficult tounderstand market needs. As MEC Industry carries out all processes seamlessly, from theprocurement of raw timber to processing, manufacturing, and sales, it can offer the highquality products sought by end users at a reasonable price.

3

Integrated and optimized business model

Sales

Mountains

Assembly

MEC Industry
Process
Processing
Management

Manufacturing

TimberReducing Workloads

Since the MOKUWELL business utilizes pre-manufactured, standardized units, many of theprocesses previously carried out on-site can be completed at its factory, reducing theamount of construction work performed on-site. In addition, conducting manufacturing at
MEC Industry’s plant makes it easier to secure personnel and track progress. Althoughlabor shortages have been cited as an issue for the construction industry, promoting efficient operations will help alleviate such shortages into the future.

New Construction Materials Business

The new construction materials business develops and supplies new construction materials to promote the increasing use of wood for the interiors of high- and medium-rise buildings. To this end, the business offers wood, which boasts outstanding design characteristics,
for use in reinforced concrete and steel buildings while minimizing the impact of construction work and reducing construction periods.
2

Timber Utilization Business

The timber utilization business sells construction materials, such as cross laminatedtimber (CLT)*1 and two-inch by four-inch timber used in the aforementioned standardized
units, and by-products such as bark*2 and sawdust.
*1 Large panels formed by laminating and gluing together layers of wood at right angles to each other*2 The outer layer of a tree trunk

38

Utilizing Domestic Timber Effectively

MEC Industry can reduce CO2 emissions through carbon fixation in urban areas by expanding the effective utilization of domestic timber. In addition, logging timber from forests andcarrying out reforestation activities also promise to reduce CO2 emissions through further
carbon fixation, thereby constituting global warming countermeasures. Facilitating a virtuous cycle in domestic forests through reforestation can be expected to realize the functionsof green infrastructure, such as water source protection and landslide prevention, while
also maintaining and enhancing biodiversity and natural capital. Furthermore, minimizing the use of steel and concrete byusing timber as a construction material, more specifically, as a primary structural material, can reduce greenhouse gas emissions during construction work and contribute to the recycling of materials when buildings constructed using timber are
demolished. At its plant, MEC Industry is also working to reduce waste volumes, such as by using the wood shavings produced
during the manufacturing process as a heat source for its boiler.

COMMENT

Growing as a Company That Communities Can Be Proud of by Helping
Resolve Various Social Issues
Comprehensive forestry, the business in which MEC Industry engages, is based on resourcesthat have been rooted in communities over a period of several decades, namely, the growing oftrees planted on and near mountains. As a result, establishing a rapport with communities isabsolutely essential. This aspect of the business has been a new challenge for us, given that ourprevious business experience was primarily in urban areas. We have provided repeated explanations to communities to give them a clear picture of our approach and initiatives while aligning
said initiatives with the wishes and approaches of local government organizations, business
operators, mountain and forest owners, and neighboring residents. We believe that becoming a
Detached Housing Team,
General Manager,
company that communities can be proud of is a prerequisite to making a success of this busiManufacturing Section,
Planning Department
ness. Accordingly, going forward we will establish a new plant and operate it over the long term.
Manufacturing Department,
MEC Industry Co., Ltd.
“Creating the Future Together,” MEC Industry’s corporate philosophy, means continuously
MEC Industry Co., Ltd.
creating new value by standing shoulder to shoulder with partners as we move into an everTomomi Haraguchi
Takuya Yanasechanging future. We aim to contribute to the resolution of social issues through the effective(left)(right)utilization of domestic timber via an integrated and optimized business model. We will also
examine the possibility of obtaining Forest Stewardship Council certification to further expand the use of timber in urban buildings.
Connecting rural areas with urban areas and cities with mountains and forests, we hope to continue fulfilling our role in achieving aprosperous and sustainable society.

39

Business Review
Business Segments

Commercial Property Business Group

The Mitsubishi Estate Group operates the office building business andvarious other businesses in Japan and overseas.

 Please see pages 42 to 47 for details.

Under Long-Term Management Plan 2030, we will enhance our earnings
power in each segment through business strategies that leverage
our competitive advantages, as well as actively working to establish
new businesses that pursue synergies with our established businesses.

Office Building Business

Retail Facility BusinessThis is Mitsubishi Estate’s core business, which
engages in the development, leasing, and property management of office buildings, mainly inTokyo and other major Japanese cities. We promote urban development that contributes to theincreased appeal of cities while maintaining abalance between properties for lease andproperties for sale in our asset portfolio.

Other

Outlet Mall Business

Promoting the development of various types ofretail facilities tailored to the characteristics oflocations across Japan, the Mitsubishi EstateGroup operates this business using a comprehensive system whereby it remains continuously
involved from facility planning, development, andtenant leasing through to operation after opening.

We conduct the nationwide development andoperation of our PREMIUM OUTLETS®, whichboast the top customer-drawing power in Japan.

Architectural Design & Engineering
Business and Real Estate Services Business
Investment Management BusinessBusiness Review

Operating Profit

278,977 million

¥

U.S.$

2,538 million*

Operating Revenue

International Business

1,349,489 million

¥

U.S.$

12,278 million*

Total Assets¥
MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

56,459 million*

U.S.$* Yen amounts have been translated into U.S. dollars as follows.
Profit and loss items: Average yen/U.S. dollar exchange rateduring the fiscal year (FY2022: ¥109.91/U.S.$1.00; FY2023
forecast: ¥120.00/U.S.$1.00)
Balance sheet items: Yen/U.S. dollar exchange rate at the endof the fiscal year (FY2022: ¥115.02/U.S.$1.00; FY2023 forecast:¥120.00/U.S.$1.00)

Residential Business

Hotel Business

Commercial Property Business

Operating
Profit (Loss)

Total Assets

Commercial Property Business

760,658

189,909

4,273,287

Residential Business

380,959

30,173666,928

International Business

121,234

55,816

1,130,973

Investment Management Business

46,702

26,537

108,984

Architectural Design & Engineering
Business and Real Estate Services Business

57,7802,802

57,759Other

10,134(1,683)25,352(27,979)(24,578)

230,630

1,349,489

278,977

6,493,917

Eliminations or Corporate
Total

Millions of yen
Operating
Revenue

Airport Operation BusinessWorking together with hotel operators in Japanand overseas, we conduct a hotel development
business across a wide range of categories
matching location characteristics as well aspracticing nationwide hotel business operations
under the Royal Park Hotels brand and the
Marunouchi Hotel.

Residential Business Please see pages 48 and 49 for details.

Fiscal year ended March 31, 2022 (consolidated)

40

6,493,917 million

Logistics Facility Business
Under the Logicross brand, Mitsubishi Estate ispursuing logistics facility business opportunities
nationwide. To take advantage of the rapid
growth in the domestic logistics market on theback of the expansion of e-commerce and otherfactors, we are promoting development projects
at locations suited to logistics nearby major terminals, such as metropolitan areas, main roads,
ports, and airports.

We offer services to meet a variety ofneeds for condominiums, rental apartments, custom-built housing, purchaseand sales, leasing, brokerage areas,
renovations, and management. As thecirculation of existing homes expands andpeople’s lifestyles grow increasingly
diverse, we are strengthening our reformand renovation business to seize uponsuch changes.

The airport operation business promotes theinvigoration of airports and their localities
through its involvement in the operation of 10
airports. The airports contribute to regional
development by acting in unison with their local
communities to increase the non-resident population and improve regional value.

International Business Please see pages 50 and 51 for details.

The Mitsubishi Estate Group has pursued
business overseas since the 1970s,
undertaking real estate leasing and development businesses in the United States
and the United Kingdom. In recent years,
we have also been actively developing ouroffice building, residential, commercial
facility, and other real estate businesses in
rapidly expanding Asian markets andadvancing into continental Europe.

Investment Management BusinessArchitectural Design & Engineering Businessand Real Estate Services Business Please see page 52 for details.

For investors seeking real estate asset
management, we provide a wide range ofservices based on our specialized expertise,utilizing collaboration among our operatingbases in Japan, the United States, Europe,and Asia excluding Japan. These services
include real estate investment trusts(REITs) to meet management needs forlong-term stability as well as private
placement funds to meet the specific management needs of institutional investors.

 Please see page 53 for details.

This full-service architectural design andengineering business meets social needs
through construction, civil engineering,urban and regional development planning,and consulting. Meanwhile, the Real Estate
Services Business provides one-stop,
real estate problem-solving solutions,
including real estate brokerage andcondominium and office building leasing
management support.

41

Commercial Property Business

Commercial Property Business
Asset Types

Non-Asset Businesses and Others	We intend to expand and strengthen non-asset businesses, including property management and master leases, andbusinesses that utilize existing stock, such as through the renovation of aged buildings.

Office Buildings

Retail Properties
and Outlet Malls

Logistics Facilities

Hotels

Airports

Competitive Advantages for Realizing Our Strategies	Ownership of about 30 office buildings in the Marunouchi area, a leading business area in Japan with one of
the world’s greatest concentrations of companies.

Operating Revenue / Operating Profit(Results and Forecasts)

Commercial Property Business Group Breakdown(Fiscal year ended March 31, 2022)(Millions of yen)
1,000,000

250,000

800,000

Business Review

723,712

187,855
672,441

180,775

788,000
182,000

760,658 189,909

150,000

400,000

100,000

50,000

FY2020

FY2021

Operating revenue (left scale)

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Propertysales
17%

FY2022Others6%

Outlet malls
8%

Operating
Revenue

Operating
Revenue

Approx.:Breakdown

760.6 billion

¥

0

0

Breakdown by Real Estate
Leasing Asset Type

Others11%200,000

600,000

200,000

Breakdown by
Business ModelFY2023 (forecast)546.1 billion¥

Real estate leasing

72%

Operating profit (right scale)

Approx.:	Redevelopment in Marunouchi not requiring new land acquisition largely unaffected by fluctuations in thereal estate investment market, thus enabling stable and continuous redevelopment.
	Development know-how and a track record cultivated through continuous urban development in the
Marunouchi area for more than 130 years.
	Tenant relationships and information networks built through the Group’s wide-ranging businesses, including development in the Marunouchi area	Relationships with the central and local governments built through public and private sector cooperation in
urban development.
	Urban development and area management with advanced disaster-management functions centering on the
Marunouchi area.

Offices86%

Office Building Business

Overview

The office building business, Mitsubishi Estate’s core business, engages in the development, leasing, and property management of office buildings with state-of-the-art functions, mainly in major Japanese cities centering on the Marunouchi
area. Our businesses involve three types of earnings models: our property development and leasing business, in which
we ourselves develop office buildings and receive rental revenue from them; our capital-recycling business, in which we
generate capital gains on the sale of properties we have developed; and our non-asset businesses, which center on
office building operations and management. Through building development and operations, we are promoting urban
development to increase the attractiveness of the entire surrounding area.
Office Buildings
Business Concept

Marunouchi area (mainly theproperty development andleasing business)

Major business areas inJapan (mainly the capitalrecycling business)

Main Non-Asset Type Businesses
Property management

Master leases

Progress on Long-Term Management Plan 2030 Completion of the Large-Scale Renovation of the Otemachi Building
In May 2022, Mitsubishi Estate completed the large-scale renovation of the
Otemachi Building, an office building originally completed in 1958. In addition to developing a workspace with abundant greenery and an area forfarming on the rooftop of approximately 4,000 m2, we created a communal
lounge and terrace on the seventh floor for those working in the building
and in the surrounding area. The Company will strive to ensure theOtemachi Building has a life span of 100 years by establishing new places
where people and companies can gather and interact, such as the LAB
zone created on the east side of the building, which is home to start-ups
and other companies.

Previous exterior of the Otemachi Building

Exterior following renovation

Sustainability Initiative 
Marunouchi Area
Business
Strategies

	Generally, redevelopment enables rental revenue to be increased by expanding building floor space and raising rents per
square meter. In the Marunouchi area, we will promote continuous redevelopment that not only capitalizes on the advantages provided by realizing synergies across the whole area but also raises the value of individual development projects.
	Positioning urban development from 2020 onward as part of Marunouchi NEXT Stage, we will establish a “co-creation
platform for innovation through companies, employees, and visitors.”
Main Office Areas in Japan	We aim to strengthen our development pipeline by using the know-how we have accumulated through redevelopmentin the Marunouchi and other areas.

Acquisition of WELL Core Precertification under WELL v2 for the Chiyoda 1-Bancho Project (Tentative Name) —Supporting Workstyles That Emphasize Well-Being
Mitsubishi Estate has become the first company in Japan to receive precertification for WELL Core—which can be acquired bybuildings occupied by tenants—under WELL v2, the latest version of the WELL Building Standard (WELL Certification),* an international ratings system for buildings that emphasizes the health and well-being of people. The Company received the precertification
for the Chiyoda 1-Bancho Project (tentative name), which it is advancing in Chiyoda Ward, Tokyo, for reasons including the highevaluation of the project’s promotion of urban development in line with WELL development concepts, the introduction of a panel
heating and cooling system, the facilitation of fitness for workers, and the provision of operable windows that offer ample natural light. Following completion of the project, we aim to obtain platinum certification, the standard’s highest certification level.
Recent years have seen an increasing number of companies acquiring WELL Certification for areas of buildings reserved for
office space. However, meeting the WELL Core certification standards for the actual building has the advantage of enabling tenantcompanies to more easily pursue WELL Certification for their office spaces by, for example, exempting them from screening for
certain evaluation items. With the preliminary certification as a forerunner to further efforts, we will continue proactively supporting workstyles that emphasize well-being and enhancing office value from the perspective of concern for the environment.
* A certification system operated by the U.S. Green Building Council that focuses on the impact of building environments on the health and wellness of users. The system primarily rates interior environments, facilities, and services that contribute to health.

42

Chiyoda 1-Bancho Projectat the time of the precertification announcement;
view of building exterior

43

Commercial Property Business

Commercial Property Business

Overview

Business
Strategies

Retail Facility Business / Outlet Mall Business

Logistics Facility Business

The retail facility and outlet mall businesses promote the development of various types of retail facilities tailored to thecharacteristics of locations across Japan. The Mitsubishi Estate Group operates these businesses using a comprehensive system whereby it remains continuously involved from facility planning, development, and tenant leasing through tooperation after opening. These businesses are operated through three business formats: urban mixed-use facilities,
stand-alone shopping centers, and PREMIUM OUTLETS®.

The functions required of logistics facilities are changing as the domestic logistics market grows rapidly on the back of the
expansion of e-commerce and other factors. In recent years, we have been planning development projects centered on
locations that are easily accessible by public transportation and advantageous for recruitment, in addition to being ideallysituated for logistics, and on locations in proximity to metropolitan areas and nearby major terminals, such as expressways,
main roads, ports, and airports. The Mitsubishi Estate Group will continue to conduct proactive investment, development,
operational management, and asset management centered on the Tokyo metropolitan, Kansai, and Chukyo areas.

	With urban mixed-use facilities, we are aiming to deliver wide-ranging eating and drinking options and shops as wellas various service providers to offer better amenities and convenience for office workers while also drawing in people
for shopping and tourism.

Business
Strategies

	Regarding stand-alone shopping centers, we are developing distinctive facilities tailored to diverse demand based on
detailed analyses of the location, local demand characteristics, tourism potential, and discussions with tenants.

Business Review

	With outlet malls, we will continue to expand and refurbish existing facilities and develop new ones to offer visitors
unique spaces and meet their needs for a fun, one-of-a-kind experience.

	We intend to make acquisitions of land and undertake leasing operations by making use of our multiple information
networks and tenant relationships.
	We aim to generate stable capital gains by leveraging our logistics facility business platform to sell developed properties to Mitsubishi Estate Logistics REIT Investment Corporation, which is managed by Mitsubishi Jisho Investment
Advisors, Inc., and other parties.
	We intend to generate synergies Groupwide by sharing the information networks and management know-how acquiredby Tokyo Ryutsu Center Inc. (TRC), which has been involved in logistics facility business operations for over 50 years.

Competitive Advantages for Realizing Our Strategies

Competitive Advantages for Realizing Our Strategies

	The top customer-drawing power in Japan of PREMIUM OUTLETS®.
	Information networks and tenant relationships built through wide-ranging Group businesses, including
developments in the Marunouchi area.

	A business platform with a broad range of functions related to logistics facilities, from land acquisition anddevelopment to building operations, ownership, and asset management.

	Extensive development and management know-how gained through a portfolio consisting of three different
business formats, business coverage in Japan stretching beyond Tokyo, all the way from Hokkaido to Kyushu,
and an extensive tenant network.

	Tenant relationships and information networks through wide-ranging Group businesses, including developments in the Marunouchi area.

Area Map of Main Retail Facilities
MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Overview

Changes in Store Area, Operating
Revenue, and Operating Profit of theOutlet Mall BusinessChanges in ROA and Total Assets of theOutlet Mall Business(Billions of yen)

maruyama class

(m2)

80

400,000(%) 

308,500 m2 314,600 m 315,300 m
2

GOTEMBAPREMIUM OUTLETS®

IZUMI PARK TOWN Tapio

60

Changes in Gains on Sales(Billions of yen)
200

20

17.9%

345,500 m2 345,500 m2

AQUA CITY ODAIBA	Management know-how and experience gained through TRC and its competitiveness underpinned by being
based in Heiwajima, a location providing excellent access to central Tokyo and Haneda Airport.

18.0%

8.0

15

12.6% 13.6%

150

SANO PREMIUM OUTLETS®
40

200,000

10

100

8.0

20

100,000

5

50

0

0

7.0

6

4

4.0

SHISUI PREMIUM OUTLETS®
MARK IS Minatomirai
MARK IS Shizuoka

MARK IS Fukuoka Momochi
TOSU PREMIUM OUTLETS®

0

FY2018FY2019FY2020Operating revenue (left scale)Operating profit (left scale)

FY2021

FY20220

FY2018FY2019ROA (left axis)

FY2020

FY2021

FY2022¥27.0 billion¥84.0 billion(As of March 31,
2020)(As of March 31,
2022)

2

2.0

Assets under development
64% (8 buildings)

RINKU PREMIUM OUTLETS®
KOBE-SANDA PREMIUM
OUTLETS®

Assets in operation
55% (7 buildings)

Assets in operation
36% (2 buildings)

8

17.3%

2

300,000

Total Assets(Billions of yen)0

FY2018FY2019FY2020

FY2021

FY2022

Note 1: Ratio by value
Note 2: Excluding TRC

Assets underdevelopment 45%(10 buildings)

Total assets (right axis)

Store area (right scale) lthough the impact of COVID-19 prompted a temporary decline in both operating revenue andA
operating profit, profits remained high and outlet malls maintained a high level of ROA for aleasing business.

Sustainability Initiative 

Sustainability Initiative 

Commencement of a Food Recycling Initiative Using Food Residue from Restaurants as
Recycled Compost for Mall-Greening Efforts

Development of Mitsubishi Estate’s First Logistics Facility to Meet ZEB Standards
Logicross Zama Komatsubara, a logistics facility completed in March 2022, became Mitsubishi Estate’s first
facility to receive Zero Energy Building (ZEB)*1 certification. Also, we have installed solar power generationequipment on the facility’s rooftop and are running a range of initiatives, such as utilizing a powerpurchase agreement (PPA)*2 model in-house consumption scheme using the power generated at the facility.

In September 2021, GOTEMBA PREMIUM OUTLETS® began a food recycling initiative contributing to theformation of a recycling-oriented society. Producing recycled compost from food residue generated within
the mall reduces waste and enables such residue to be used as recycled food resources on the premises.
Thus far, we have created three compost heaps within the mall from food residue generated by eight participating restaurants. This food residue is collected, biodegraded by microorganisms, and composted at arecycling center. The Company uses the recycled compost as a planting compost for mall-greening efforts,
including at the Flower Terrace in GOTEMBA PREMIUM OUTLETS®.

*1 Buildings with annual primary energy consumption of net zero or less.
*2 The second initiative for the Logicross series of facilities carried out together with SymEnergy Inc., a PPA operator.

GOTEMBA PREMIUM OUTLETS®

44

Logicross Zama Komatsubara

45

Commercial Property Business

Commercial Property Business

Overview

Hotel BusinessAirport Operation Business

The hotel management business operates 18 hotels nationwide* under the Royal Park Hotels brand and the Marunouchi
Hotel in the Marunouchi area, aiming to improve brand value through the implementation of management focused on
customer satisfaction. Mitsubishi Estate aims to address diversifying customer needs by continuing to increase newhotel openings.
In addition, to meet recent, diverse accommodation needs, the hotel development business engages in hotel development across a wide range of categories tailored to location characteristics in cooperation with hotel operators in Japanand overseas, including Royal Park Hotels and Resorts Co., Ltd., of the Mitsubishi Estate Group.

The Mitsubishi Estate Group is involved in the operation of Takamatsu Airport, Miyako Shimojishima Airport Terminal,
Mt. Fuji Shizuoka Airport, and seven airports in Hokkaido. Each airport will contribute to regional development by acting
in unison with their local communities to increase the non-resident population and improve regional value while leveraging the distinctive characteristics of their respective regions.

* As of August 2022

Business
Strategies

	We focus on the development of hotels under the Royal Park Hotels brand on sites we have acquired ourselves while
actively looking to lease properties to other operators and generate capital gains through the sale of properties after
holding them for a certain period of time.

Business Review

	With the Royal Park Hotels brand, we aim to steadily increase operating profit by improving the operating profit ratio atexisting hotels while opening three to four new hotels on a yearly basis through the leasing of properties developed byother companies and the utilization of various schemes, including management contracts and franchise contracts.

Overview

Operation of Airports
4 Seven Airports in Hokkaido
Launch of airport building facility business for theseven Hokkaido airports in January 2020
Commencement of business operations at New
Chitose Airport in June 2020
Beginning of business operations at Asahikawa
Airport in October 2020
Launch of business operations at Wakkanai,
Kushiro, Hakodate, Obihiro, and Memanbetsu
airports in March 2021

3 Mt. Fuji Shizuoka Airport
Operating since April 2019

New Chitose Airport

2 Miyako Shimojishima Airport Terminal
Opening of passenger terminal facilities
and commencement of terminal operations at the end of March 2019

Competitive Advantages for Realizing Our Strategies

1 Takamatsu Airport
Operating since April 2018

	Leveraging our development expertise and the tenant relationships we have built by handling diverse real estate
assets as a comprehensive developer in order to acquire sites for hotels and promote hotel development.

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

	Applying more than 30 years of hotel management experience with the Royal Park Hotels brand, to expand
our networks of full-service hotels and accommodation-oriented, limited-service hotels.

Number of Rooms at Royal Park Hotels(Published Projects)(Rooms)
5,000

4,129

4,000

Royal Park Hotels
Location
Hokkaido
Miyagi

4,414

3,815

Tokyo

3,399
3,000

2,809
2,434

2,434

2,000

Kanagawa
Aichi
Osaka

Kyoto

1,000

0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023(forecast)

Hyogo
Hiroshima
FukuokaName
The Royal Park Canvas Sapporo Odori Park
Sendai Royal Park HotelRoyal Park Hotel
The Royal Park Canvas Ginza 8
The Royal Park Hotel Iconic Tokyo Shiodome
The Royal Park Hotel Tokyo Haneda
The Royal Park Hotel Canvas Ginza Corridor(scheduled for completion in autumn 2022)
Yokohama Royal Park Hotel
The Royal Park Canvas Nagoya
The Royal Park Canvas Osaka Kitahama
The Royal Park Hotel Iconic Osaka Midosuji
The Royal Park Hotel Kyoto Sanjo
The Royal Park Hotel Kyoto Shijo
The Royal Park Hotel Kyoto Umekoji
The Royal Park Canvas Kyoto Nijo
The Royal Park Hotel Iconic Kyoto
The Royal Park Canvas Kobe Sannomiya
The Royal Park Hotel Hiroshima Riverside
The Royal Park Hotel Fukuoka

Number of Rooms
134
110
419
121
490
313
160
603
153
238
352
172
127
246
180
125
170
127
174

Business
Strategies

	We ensure stable operation at each airport while aiming to achieve operational efficiency and sophistication throughinter-airport cooperation.
	We will work to invigorate regions by leveraging our urban development expertise and to increase revenues for passenger terminal buildings by harnessing our expertise in the development and operation of retail facilities.

Competitive Advantage for Realizing Our Strategies
	Operation of airports by Mitsubishi Estate leveraging its track record of operating several airports, the expertise gained in businesses related to inbound tourism through outlet malls and hotels, and its cooperation withother businesses in the Mitsubishi Estate Group.

 espite being significantly impacted by COVID-19 in FY2021 and FY2022, with the operating environment improving steadily, we haveDembarked on management reforms, such as organizational restructuring, and aim to achieve a recovery in revenues and profits.

Sustainability Initiative 

46

Progress on Long-Term Management Plan 2030 Serving of Soup Made with Sustainable Vegetables

Opening of a Premium Outlet Satellite at Takamatsu Airport

Royal Park Hotels and Resorts Co., Ltd., and Mitsubishi Estate have made a soup containing sustainable
vegetables grown through a resource-recycling system connecting Japan’s urban and rural areas. Thissoup was served to guests at certain hotels operated under the Royal Park Hotels brand.
Furthermore, the Food and Agriculture and Resource-Recycling Lab (formerly the Giving Back to the Land
Project), which the Mitsubishi Estate Group has been running since 2019, composts a waterweed (Trapa
japonica) harvested from the outer garden of the Imperial Palace and utilizes it to grow vegetables in
Yamanashi Prefecture. Meanwhile, in August 2021 Royal Park Hotels and Resorts switched the straws usedat the restaurants and other facilities at some of its hotels to BioPBS™ products, a biodegradable resin
developed by Mitsubishi Chemical Corporation, as part of its participation in a biodegradable resin composting
project implemented in the Yatsugatake area by Mitsubishi Chemical. The Mitsubishi Estate Group purchases
the vegetables grown through both of these projects and uses them as food ingredients in the cafeteria at
the Mitsubishi Estate Head Office and at Royal Park Hotels, where they are served to employees and guests,
thereby creating new resource recycling.

Mitsubishi Estate, Takamatsu Airport, and Mitsubishi Estate · Simon Co., Ltd., haveopened a premium outlet satellite, a showroom-style store within Takamatsu Airport fora limited period integrating the features of online and brick-and-mortar stores.
Leveraging synergies created within the Mitsubishi Estate Group, the store represents a
unique approach to utilizing airports that can only be achieved at a privately owned airport. We are also implementing a similar initiative at Mt. Fuji Shizuoka Airport, offering a
new shopping experience as part of efforts aimed at revitalizing tourism demand.

Premium outlet satellite

47

Residential BusinessResidential BusinessCondominium Business

Operating Revenue / Operating Profit (Results and Forecasts)(Millions of yen)
500,000

400,000

50,000385,538

362,755

345,000
30,173300,000

24,32027,00024,06830,000200,000

20,000100,000

10,0000

0

FY2020

FY2021

Operating revenue (left scale)Business Review

40,000380,959

Overview

In the domestic condominium business in FY2022, operating revenue and operating profit were up as the number of units soldexceeded 3,000 for the second consecutive fiscal year while thesales price per unit increased. Operating revenue rose in the custom-built housing business thanks to factors including increases in
the number of houses sold and the average unit price. As a result,the Residential Business as a whole posted increases in operating
revenue and operating profit.
Although we forecast the number of units sold in the domestic
condominium business to decrease over a period of several years
from FY2023, we expect to expand sales of capital-recycling assets,such as rental apartments.

Land Bank Breakdown in Reporting Term
(March 31, 2022)(2021)

Total:
14,800 units

FY2023–FY2025
5,600 units

Main Non-Asset Type Businesses
Rental Apartments

Management

Brokerage

Custom-built
housingRenovation

1,002

10 Takara Leben

933

Non-Asset BusinessTotal Assets

Ranking of Condominium Management Companies Based on
Number of Units under Management(2022)

Assets under­development
39%(45 buildings)

Approx.
¥140.0 billion

	We aim to expand our customer base by strengthening our brand power through the enhancement of product appeal,reliability, and services and by leveraging said brand power to acquire loyal “fans.”

Assets in operation
61% (35 buildings)

1 Tokyu Community

504,334

2 Nihon Housing

478,240

3 Daikyo Astage

429,786

4 Haseko Community

382,174

5 Mitsubishi Jisho Community

328,529

6 Daiwa LifeNext

275,846

7 Gojinsha Keikaku Kenkyujo 229,708
8 Mitsui Fudosan Residential Service 205,226
9 Sumitomo Fudosan Tatemono Service 174,838

	We intend to optimize material costs and construction costs by utilizing our leading business scale in residential
condominium development in Japan.
	We are promoting redevelopment projects that make full use of our abundant know-how related to real estatedevelopment and of the comprehensive capabilities of the Mitsubishi Estate Group.

1,014

9 Tokyu Land Corporation

Rental Apartment Business

Domestic Condominiums
Business
Strategies

8 Tokyo Tatemono

Note 1: Source: “National condominium market trends, 2021” Real Estate Economic Institute Co., Ltd.
Note 2: Family-type condominiums in the Tokyo metropolitan area are included in the survey.
Condominiums for investment purposes are not included.
Note 3: Fixed-term leasehold condominiums are not included in the survey.

(March 31, 2022)

Condominiums

5 Sumitomo Realty & Development 1,161
6 Nippon Steel Kowa Real Estate 1,086

FY2026–FY2028
5,000 units

The Mitsubishi Estate Group has approximately 50 years of experience in the condominium business. We have established avalue chain to meet housing-related needs spanning from new development in Japan and overseas and rebuilding and redevelopment projects to purchasing and sales, brokerage, and management. We are also developing a wide range of businesses
to meet diversifying lifestyle needs. Such businesses include rental housing, renovation, and investment-purposed real estate.

3 Mitsubishi Estate Residence 1,622
4 Daiwa House Industry
1,614

7 SHINNIHON CORPORATION 1,077

Operating profit (right scale)Business Concept

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

1 Mitsui Fudosan Residential 3,118
2 Nomura Real Estate
2,593

FY2029 onward
4,200 units

FY2023 (forecast)

FY2022

Ranking by Condominium Seller and Owner Based on Number ofUnits Supplied (Tokyo Metropolitan Area)

10 Nomura Real Estate Partners
Note: Ratio by value

170,493

Note: Source: “Ranking of condominium management companies based on number of units undermanagement (2022),” Mansion Kanri Shimbun

Rental Apartments
	We are aiming to stabilize segment profits through capital gains from rental apartments and other investmentpurposed properties in the Residential Business.
Non-Asset Type Businesses	We aim to strengthen non-asset type businesses involving existing properties in such areas as residence management,
brokerage, custom-built housing, and renovation.
Residential Business Value Chain
	We are providing one-stop services as a corporate group making full use of all of the phases of the value chain, fromland acquisition, development, sales, and management through to brokerage.

Competitive Advantages for Realizing Our Strategies
	The power of The Parkhouse condominium and The Parkhabio rental apartment brands backed by outstanding technologies, uncompromising product quality control, and a long and extensive track record.
	Quality control of The Parkhouse brand at all stages of the development process—from design and construction to completion—with “Check Eyes,” our quality management and performance indication system, whichreflects our dedication to all aspects of the properties we offer.
	Product-planning capabilities that ensure our buildings keep people safe through resilience in natural disasters and offer both comfort and cost performance and which respect the environment and local regions by
paying careful attention to preserving biodiversity and helping realize a low-carbon society.
	The ability to provide services to meet all housing-related needs.

Progress on Long-Term Management Plan 2030 
Development of the HOMETACT Comprehensive Smart Home Service
Mitsubishi Estate has developed HOMETACT, a comprehensive smart home service that allows its users tocentrally operate and manage Internet of Things (IoT) devices, such as housing equipment and home appliances, using an original app. In addition to enabling residents to remotely open the entrance of multifamily
buildings, unlock the front doors of condominium units, and control their unit’s lighting, air-conditioning, androbot vacuum cleaner, the app facilitates voice control using a smart speaker. Creating a system that centrally controls the IoT devices of several manufacturers will accelerate the adoption of IoT devices in living
spaces, which has been slow to spread in Japan, while creating unprecedented customer experiential value.

Sustainability Initiative 
Development of a ZEH Apartment Building Generating Virtually Zero CO2 Emissions from Electricity Consumption,a First for the Real Estate Industry
Mitsubishi Estate Residence Co., Ltd., has developed a rental apartment building—The Parkhabio Bunkyo Edogawabashi—that
meets net-zero energy house (ZEH) standards and which generates virtually zero CO2 emissions from electricity consumption,
the first in the real estate industry. The property is the first in The Parkhabio series, our rental apartment brand, to adopt the
ZEH-M Oriented standards, which are recommended for high-rise apartment buildings of six or more floors. Improving heatinsulation and reducing consumption of primary energy, in addition to installing solar panels and utilizing non-fossil certificates* from renewable energy sources, enable the building to be powered by renewable energy, with the building as a wholegenerating virtually zero CO2 emissions through electricity consumption. These efforts have reduced the building’s total annual
CO2 emissions by 63% compared with previous levels (source: Mitsubishi Estate Residence Co., Ltd.). In principle, we plan to
introduce the “soleco+” electricity supply system—which combines solar power generation and non-fossil certificates—as standard for The Parkhabio series going forward.
* Non-fossil certificates separate the non-fossil value of electricity generated from non-fossil power sources, such as solar and wind power, and certify it in writing, thereby
enabling it to be traded.

48

View of The Parkhabio
Bunkyo Edogawabashi

49

International Business

International Business
Europe 

Operating Revenue / Operating Profit (Results and Forecasts)(Millions of yen)
250,000

94,000205,000

200,000

150,000

46,156

121,234

114,457

100,000

80,00060,00055,816

134,175

100,000

40,00037,93250,00020,0000

0

FY2020

FY2021

Operating revenue (left scale)

FY2022

While a transitional period for asset replacement led to a decrease inoperating income in Europe in FY2022, operating revenue increased
both in the United States and Asia, reflecting higher occupancy rates
at our flagship building in the United States, 1271 Avenue of theAmericas, where renovation work was completed, and a rise in revenue from property sales both in the United States and Asia. As aresult, operating revenue and operating profit increased in theInternational Business as a whole. In FY2023, we expect a further risein operating profit, with gains on sales, primarily sales of large-scale
properties in Europe, forecast to drive profit growth.

Business
Strategies	Implementation of investments and returns with a focus onbalancing profit stability and capital efficiency
	Promotion of business development centered on largescale projects that have already been decided
	Expected return from investment IRR: 8%–10%Competitive
Advantages

FY2023 (forecast)

Operating profit (right scale)	Know-how and broad network based on a business trackrecord of approximately 40 years
 ur business in Europe has a track record in many Group-ledOdevelopments for highly individualized and difficult projects
requiring consultations with government bodies and applications for approval, as well as know-how cultivated throughsuch activities.

Business Review

	Europa Capital’s extensive network

Overview

The Mitsubishi Estate Group’s International Business began with the establishment of a company in the United States inthe early 1970s. Its geographical coverage has since expanded to include the United Kingdom, mainland Europe, andAsia and Oceania. We have been strengthening our portfolio with both management properties predicated on returns
from rental fees in our property development and leasing business and properties for sale premised on raising theirvalue under a capital-recycling business model. We are promoting business expansion with respect to the real estate
trading rules and business customs of each country. Furthermore, we seek to apply optimal business models for eachmarket based on macroeconomic data and analysis of capital and real estate markets to identify the right time to enter.
(FY2022)

Asia
28%
Asia
30%

Business profit(inside chart)¥55.8 billion

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

EuropeMitsubishi Estate London Limited
Europa Capital Group*

United States
Rockefeller GroupInternational, Inc.
Mitsubishi Estate New York Inc.
TA Realty LLC*

Asia and Oceania
Mitsubishi Estate Asia
Pte. Ltd.
• Yangon Branch• Australia BranchMitsubishi Estate Vietnam Company Limited• Hanoi Branch
PT. Mitsubishi Estate Indonesia
Mitsubishi Estate (Thailand) Co., Ltd.
Mitsubishi Estate (Shanghai) Ltd.
Mitsubishi Estate Taiwan Ltd.
MEC Global Partners Asia Pte. Ltd.** Group companies under the Investment Management Business segment

Total assets(outside chart)¥1.1309 trillion(Targets for 2030)

UnitedStates68%

UnitedStates
49%

Asia
45%

Total assets(outside chart)
Approximately¥1.5 trillion

Asia
45%

	Reinforcement of capital-recycling business leveraging
know-how of Rockefeller Group International, Inc. (RGII)	Promotion of joint ventures with local partners
	Expected return from investment IRR: 8%–10%	RGII’s development know-how and name recognition

Competitive
Advantages

In addition to large-scale and mixed-use developments, as
exemplified by the Rockefeller Center, RGII has established anabundant development track record throughout its approximately
90-year history, managing a variety of real estate, including logistics facilities and residences (for selling and leasing).

	TA Realty’s sourcing power ith a focus on logistics facilities and rental housing, TA RealtyW
has invested and managed in a wide range of markets acrossthe United States, thereby also contributing to the Group’s
sourcing power in the country. In particular, TA Realty ranks
eighth* in the United States in terms of transaction amount for
logistics facilities.
   * Source: Mitsubishi Estate Co., Ltd. (based on data from July 2011 to September 2021)

	Increase in investment balance and establishment of acapital-recycling portfolio	Business promotion based on the two approaches of business development in which we have a major share and of
joint business with local partners
	Expected return from investment:
IRR (developed countries): 8%–10%;
IRR (emerging countries): Over 10%

Europe23%

Business profit(inside chart)¥90.0 billion

UnitedStates40%

UnitedStates35%Europe15%
Europe20%

Most Recent Initiatives

Warwick Court (City of London, United Kingdom) Mitsubishi Estate’s first largescale office renovation projectin London
Use: Offices and stores
Size: 8 aboveground floors / 2
belowground floors
Total Floor Area:
Approximately 29,000 m2
Completion: July 2022
8 Bishopsgate (City of London, United Kingdom) A 52-floor, high-rise office building in the center of London
Use: Offices, stores, and an
observation gallery
Size: 52 aboveground floors /3 belowground floors
Total Floor Area:
Approximately 85,000 m2
Completion: During FY2023(tentative plan)

Asia and Oceania Business
Strategies

United States 
Business
Strategies

50

Europe2%

 ince 1995, Europa Capital has put together and managed 13
Sfunds, investing a total of more than €13.3 billion in 21 countries in Europe. During this time, it has built relationships withover 120 institutional investors, primarily in North America
and Europe.

Most Recent Initiatives

Competitive
Advantages

	Promotion of businesses in 10 countries and regions in
Asia and Oceania
 e develop businesses in a wide range of countries, including
W
Singapore, Vietnam, Thailand, and China. Most recently, we
opened a branch office in Australia in May 2021, where we arealso expanding the scope of our businesses.

	The network of MEC Global Partners Asia, a joint venture
we established with CLSA
 EC Global Partners Asia puts together and operates core-plus
Mfunds targeting investments in a diverse array of real estate,such as offices, retail facilities, logistics facilities, and residences.

Most Recent Initiatives
Parkline Place (Sydney, Australia) Project developing premium
offices with an emphasis on
well-being
Use: Offices, retail facilities,
and parking lots
Size: 39 aboveground floors /5 belowground floors
Total Floor Area:
Approximately 65,900 m2
Completion: January 2024
(tentative plan)
ALPHA PARK (Hangzhou, China) 
The first stage of a large-scale
office development project in
China
Use: Offices and retail facilities
Size: 18–23 abovegroundfloors / 1 belowgroundfloor (4 high-risebuildings)
Total Floor Area:
Approximately 233,600 m2
Completion: September 30,
2021

Rose Hill 
RGII’s first condominium
business se: Condominiums
UScale: 45 aboveground floors /2 belowground floors(123 units in total)
Completion: 2022
Data Center Development Business First time to participate in a data center development businessin the United States ite Area: Approximately
S
587,000 m2
Building Area: Approximately
140,000 m2 (total for 7
buildings)
Completion: Building 1 in 2024
Building 2 in 2025

Sustainability Initiative Completion of CapitaSpring, a Large-Scale, Mixed-Use Development Project in Singapore
November 2021 saw the completion of CapitaSpring, a mixed-use facility in the center of Singapore that Mitsubishi
Estate had developed jointly since 2017 with CapitaLand Group, one of Asia’s largest real estate companies.
Consisting primarily of offices, CapitaSpring is a high-rise, large-scale, mixed-use facility with 51 aboveground floors
and a total floor area of more than 93,000 m2 and features serviced apartments, retail facilities, and other amenities.
With its outstanding environmental performance—highlighted by its exterior design evoking nature, efficient use ofwater and energy, a green area for strolls, and an extensive green area provided by the rooftop garden—CapitaSpring
has received Green Mark Platinum, the highest award for the Building and Construction Authority (BCA) Green Mark,Singapore’s most recognized environmental performance indicator. Through this facility, we propose new styles ofworking and living to a wide range of people near Raffles Place station, Singapore’s foremost office area.

CapitaSpring51

Investment Management BusinessArchitectural Design & Engineering Business andReal Estate Services Business

Investment Management BusinessArchitectural Design & Engineering
Business and Real Estate Services Business

Operating Revenue / Operating Profit (Results and Forecasts)

Operating Revenue / Operating Profit (Results and Forecasts)(Millions of yen)

(Millions of yen)

50,00080,00046,702In FY2022, both operating revenue and operating profit in theInvestment Management Business grew significantly atop therecording of substantial incentive fees associated with a rise in themarket valuation of assets held by a fund in the United States forwhich the Group conducts asset management. Meanwhile, although
operating revenue is anticipated to decline in FY2023, owing to a
fallback from the large-scale incentive fees seen in FY2022, we
expect the Investment Management Business to post operating
profit in excess of ¥10.0 billion, reflecting the gradual expansion ofassets under management.

40,00035,00030,00020,00026,53722,19921,316

13,00010,000

5,966

4,467
0

57,128FY2021

Operating revenue (left scale)

4,000

40,000

FY2022

4,000

2,000

959

FY2020Operating profit

United States
TA Realty

Asia and
Oceania120(As of March 31, 2020)

Asia Pacific
Globally, we havecombined assets
under managementof approximately¥4.5 trillion.

MEC Global Partners Asia

Europe450

UnitedStatesOverseas 1,200

1,770

CLSA Real Estate

Carry out marketing and research and establish funds worldwide
Provide global opportunities to worldwide investors

Japan
Groupwide
Synergy

Overview

Asia and
Oceania130(As of March 31, 2022)

The Group’s network for investment and development and management and services

Europe500

	The Architectural Design & Engineering Business has extensive experience and expertise in urban planning and development, from the design and management of buildings for various applications—including large-scale, mixed-use
developments in the Marunouchi area—and proposal-based consulting to the planning and design of underground networks, transport hubs, and infrastructure facilities.

Real Estate Services Business

Domestic
1,890

	The Real Estate Services Business boasts one-stop real estate solution provision capabilities leveraging a wide-ranging service menu (including support utilizing CRE* information and real estate brokerage) and the Mitsubishi EstateGroup’s comprehensive strengths.
	We provide solutions throughout Japan using our nationwide branch network backed by specialist expertise and knowledge.
* Corporate real estate (CRE): Real estate held or used by a business enterprise or organization for its own operational purposes. In recent years, there has been growing interest in
using CRE strategically to contribute to increasing corporate value.

Domestic
2,100

Total approximately¥4.5 trillion

UnitedStates
1,800

Operating profit (right scale)	We have access to a wealth of information on China and Southeast Asian countries through a network centered on
local subsidiaries established in Shanghai and Singapore.

MJIA
840

JRE
1,100

FY2023 (forecast)	We undertake design and management with an in-depth understanding of operation, maintenance, and managementfrom the perspectives of business operators and clients based on experience cultivated as a comprehensive
developer’s in-house design office.

Expansion of AuM
despite COVID-19

Japan Real Estate AssetManagement Co., Ltd. (JRE)
Mitsubishi Jisho Investment
Advisors, Inc. (MJIA)

JRE
1,050

Total approximately¥3.6 trillion

FY2022In FY2022, the Architectural Design & Engineering Business and Real
Estate Services Business achieved increases in operating revenue
and operating profit. These increases resulted from an expansion inboth the number of project sales and the monetary amounts oforders received in the Architectural Design & Engineering Business,
as well as from a surge in growth in the real estate brokerage andparking businesses relative to the previous fiscal year, which saw thesuspension of operations and other restrictions during the states of
emergency triggered by the spread of the COVID-19 pandemic. We
anticipate further increases in operating revenue and operating profit
in FY2023 on the back of an improvement in the operating
environment.

Architectural Design & Engineering Business	In Japan, the Investment Management Business offers specialist services. Mitsubishi Jisho Investment Advisors, Inc.,
provides asset management services across a wide range of investment products, including the country’s largest private real estate investment trust (REIT) and a listed logistics REIT, while Japan Real Estate Asset Management Co., Ltd.,
manages Japan’s first publicly listed office REIT.

Europa Capital

FY2021

Operating revenue (left scale)	Through the execution of M&A deals and other activities overseas, we have established a strategic global investment
management platform. This enables us to provide global asset management services to clients by leveraging our
expertise and achievements fostered in Japan, the United States, Europe, and Asia excluding Japan.

Overview

0

FY2023 (forecast)

EuropeMITSUBISHI ESTATE CO., LTD. Integrated Report 2022

6,000

2,802

2,407
20,000

AuM Area Breakdown (Billions of yen)

MJIA
1,000

Overseas
2,430

Goal: Reach ¥5 trillion by the mid-2020s

Architectural Design & Engineering BusinessBusiness
Strategies

	In addition to handling design project orders from within the Group and from long-established clients, the Architectural
Design & Engineering Business is working closely with the Business Development, Client Relations & Solutions Groupto win new orders.
	We are expanding our earnings base by focusing on growth fields, such as construction management work involving
the comprehensive management of projects—including schedule, budgetary, and quality control—renovations, use ofwooden materials, achievement of carbon neutrality for existing buildings, and smart-city projects.
	We provide technological support to Group companies and seek to generate synergies therewith.

Business
Strategies

	By utilizing our hybrid investment model strategy, through which we co-invest our principal investment capital alongside ourclients’ in funds that our Group companies manage, we seek to capture demand for cross-border property investments.
Through this approach, we are simultaneously pursuing the expansion of our overseas portfolio while benefiting fromenhanced investment diversification as well as expanding and strengthening our investment management businesses.
	In Japan, we meet the needs of domestic and overseas investors by providing a diverse lineup of products, including
listed REITs, private REITs, and private funds, as well as dependable asset management services.

Sustainability Initiative 

52

62,00057,78056,0640

FY2020Business Review

60,0008,000

Real Estate Services Business	We are aiming to be the leading company in CRE strategy support, real estate consulting, and recreational land and recreational facility management by providing services to enterprises and high-net-worth individuals as our core customers.
	We are strengthening our value chain, which combines a variety of service menus of the Business Development, Client
Relations & Solutions Group and of each of the Group’s businesses, while expanding the range of services we provide
to existing customers.

Progress on Long-Term Management Plan 2030 Formulation of a New Target to Reduce CO2 Emissions by 80% by FY2031 (Compared with FY2020)

Launch of Direct Matching Service Website TAQSIEIn anticipation of the early achievement of the CO2 emissions reduction target it unveiled in 2020, Japan Real Estate Investment Corporation (JRE) isseeking to reduce its CO2 emissions by 80% by FY2031 compared with FY2020 and to achieve virtually zero emissions by FY2051 as new targets raising
the rate of its CO2 emissions reductions. The new targets have been certified by the Science Based Targets (SBT) initiative.*1 In conjunction with its application to the SBT initiative, JRE has made several changes to align with global standards, such as switching to a total emissions reduction target fromits previous per-unit target, revising the base year from FY2014 to FY2020, and managing emissions reduction targets for Scope 1, Scope 2, and Scope
3.*2 In addition, JRE joined RE100, an international initiative encouraging companies to source 100% of the electricity they use in their business activities
from renewable energy. Moreover, JRE will work to realize a decarbonized society by sourcing 90% of the electricity it uses at buildings under its ownership from renewable energy by FY2031 and 100% by FY2051.

Using a proprietary system, Mitsubishi Estate has launched TAQSIE, a service that directly matches agentswith the needs of people considering selling residential real estate. In real estate transactions, which arehighly individualized, mismatches between customers and agents have long been an issue. However,through TAQSIE we are enabling customers to entrust their valuable real estate assets to an agent withpeace of mind by building a mechanism that refers them to agents who are best suited to addressing theirneeds. With plans to expand TAQSIE’s coverage area and its services and other features for buyers going
forward, we aim to contribute to improving the transparency of real estate transactions, stimulating sales,
and raising the value of real estate.

*1 An international initiative aiming to limit the average global temperature rise resulting from climate change to below 2 ºC above pre-industrial levels*2 Scope breakdown: Scope 1: Emissions caused directly by combustion of fuel (gas, fuel oil); Scope 2: Emissions caused indirectly by combustion derived from the use of electricity and local heating and cooling; and Scope 3: Emissions caused indirectly by combustion resulting from the use of fuel and electricity in relation to tenant areas, etc.

Service coverage area:
Tokyo’s 23 wards and surrounding areas as well as
major cities in Saitama and Chiba prefectures(as of July 2022)

53

Business Development,
Client Relations & Solutions Group

Overview

Innovation and BusinessTransformation Group

Business Development,
Client Relations & Solutions Group

Innovation and BusinessTransformation Group	The Business Development, Client Relations & Solutions Group will deliver the most effective proposals to customers
by centrally managing customer contact point information with the aim of maximizing the acquisition of business
opportunities for the Group.

	The Innovation and Business Transformation Group aims to promote the creation of new value in the business model
innovation domain.

Overview	Acting as a Companywide, general contact point for the Group, the Business Development, Consulting & Solutions
Department will propose solutions maximizing the Company’s resources in response to all manner of customer realestate utilization needs.

Innovation andBusiness
Transformation
Group	The Office Leasing and Tenant Relations Department will carry out extensive office leasing activities by leveraging theGroup’s diverse building assets and customer relationships.
	In addition to functions for identifying contents and cultivating new customers, the Collaborative Creation Sales
Department will conduct sales activities based on unique contents and partnerships in anticipation of the needs ofthe era.

Business Creation
Department

12Creation of new businesses
Creation of frameworks and promotion of open innovation initiatives aimed at
the creation of new businesses

DX Promotion
Department

1

Securement of new sources of earnings

2 Heightening of earnings and increases in productivity by refining existing b­ usiness
3

models and work processes
Establishment of a Groupwide IT platform and promotion of Groupwide IT
governance and cybersecurity

	In response to latent social needs, we will seek new earnings opportunities by accumulating and analyzing available data.
Business
Strategies

	Leveraging our knowledge cultivated in the real estate business, we will expand our business domains* by proactively
cooperating with external partners. As a field for verifying the business structures born of such cooperation, the Groupwill utilize diverse real estate stock that it owns and manages.
* Including agricultural facilities, meditation studios, the biomass power generation business, and the 5G infrastructure-sharing business

Competitive Advantages for Realizing Our Strategies
Business Review

	Missions of each department

In April 2022, the Mitsubishi Estate Group strengthened the following functions of the Business Development,
Consulting & Solutions Department by revising the department’s organizational structure.
	Function for making strategic approaches to customers
	Function for cultivating new customers
	Planning and proposal functions in relation to identifying contents that meet new needs and collaboratingwith customers

	We will drive automation and laborsaving processes by using IT and digital tools to increase productivity cross-organizationally and across the entire Group.
	We will promote the increased efficiency and sophistication of real estate-related processes by leveraging technologies while creating new value and functions for real estate.
	We will proactively conduct investments and accelerators to promote open innovation while leveraging our New
Business Proposal System to uncover new business seeds from within the Company, thereby driving new businesscreation both internally and externally.

Various apparent and latent needs of customers
Existing customers / new customers

Competitive Advantages for Realizing Our Strategies
Improvement of proposal capabilities based on business model creation proposals with contents
that anticipate the needs of the era

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Business Development, Client Relations & Solutions Group
Business Development, Consulting& Solutions Department(proposals for the sale of all types of real estate)

Office Leasing and Tenant
Relations Department(office leasing)

Further identification of customer-focused needs andreinforcement of relationships

Collaborative Creation Sales Department(development of partnerships and contents
and matching)
Sales support through the provision of
proposal contents and building ofbusiness models based on cooperation

Collaboration
partners
Partners with unique and­competitive contents and­know-how(the arts, ­entertainment,
wellness, etc.)

Client Strategy Planning Department
Comprehensive adjustment functions

Message from the Executive Officer in Charge of the Business Creation and DX Promotion Departments

Further reinforcement of capabilities for cultivating new customers and making proposals thereto
that have thus far been beyond the ability of individual departments, by strengthening organic
collaboration among sales departments

The Mitsubishi Estate Group’s variety of business opportunities and apparent needs
Other departments / Group companies / New services and business models

Progress on Long-Term Management Plan 2030 54	Our wide-ranging business portfolio in the real estate domain as a comprehensive developer.
	Our B2C contact points with workers and visitors in area development districts such as Otemachi,
Marunouchi, and Yurakucho, with visitors to retail facilities and airports, and with residents and other parties
based on our position among the leading companies in Japan in terms of number of condominiums suppliedand assets under management.
	Relationships established with diverse tenants and corporate business partners, from leading major companies from various industries to start-up companies that have become tenants at our innovation hubs,
including Inspired. Lab., FINOLAB, and EGG JAPAN.

The Innovation and Business Transformation Group plays a major role in increasing revenue and profits in the
non-asset business domain and service content provision domain under Long-Term Management Plan 2030.
Furthermore, we are accelerating the development of new businesses and the transformation of existing businesses by proactively promoting open innovation with a variety of external stakeholders, including real estatetechnology companies and entities from other industries. Against this backdrop, in June 2021 Mitsubishi Estate
unveiled the Mitsubishi Estate Digital Vision, defining the future direction of the Company’s lifestyle and urban
development efforts beyond digital transformation (DX). Accurately identifying customer needs by analyzing theinformation that we acquire and accumulate from diverse customer contact points in a cross-sectional manner,
we will solve issues and uncover new business opportunities in existing business domains while realizing a user
experience loop that delivers optimized experiences to each and every user by further enhancing user experiences for customers. Meanwhile, in April 2022 the Company established the Mitsubishi Estate Computer Security
Incident Response Team, an organization to promote security within the DX Promotion Department. As chief information security officer, I will strengthen the promotion of cybersecurity for the entire Group.

Senior Executive
Officer

Ikuo Ono

Sustainability Initiative Promotion of the Art Media Consulting Business

Launch of WELL ROOM Healthcare Service Available in Multiple Languages

In March 2021, Mitsubishi Estate established MAGUS Co., a joint venture with Warehouse TERRADA, TSI
HOLDINGS CO., LTD., and Tokyu Corporation. MAGUS has developed a business offering various services inrelation to art (including services for schools, event planning, and advisory services) and consulting services tocorporations, with the operation of ARTnewsJAPAN—an art-related information media connecting artists, ordinary citizens, corporations, and the world—as its starting point. ARTnewsJAPAN is a Japanese online media
version of the United States’ ARTnews, which is deemed required reading in the global art world. In 2021,
MAGUS successfully held exhibitions to attract customers using art, such as CADAN ROPPONGI presented by
Audi. Going forward, we will continue to build an enriched society by incorporating art into our creation ofurban environments and other development efforts as well as into our relationships with customers.

Mitsubishi Estate founded WELL ROOM Co., Ltd., and began the WELL ROOM healthcare
service, available in multiple languages, in November 2021. Primarily targeting small
and medium-sized enterprises and start-up companies, WELL ROOM provides not only
referrals to medical institutions offering health checkups but also mental health andindustrial physician consulting services to people who speak different languages andwho are from various cultures, in order to realize comprehensive healthcare management for employees regardless of their nationality. Through this service, we will alleviate
WELL ROOM website pages
the fears and anxieties often felt by non-Japanese people working in Japan regarding
medical treatment and healthcare while helping mitigate the risk of non-Japanese people taking a leave of absence or resigning from their positions byreinforcing our efforts in relation to mental healthcare, which has been in the spotlight as a result of the COVID-19 pandemic.

The CADAN ROPPONGI presented by Audi exhibition

55

Sustainability (ESG) Section
The basic mission of the Mitsubishi Estate Group is “to contribute to society through urban development.” Adopting along-term view, the Group believes that it is of great importance to pursue business activities in harmony with society.
In light of the growing momentum in Japan and overseas behind environmental, social, and governance (ESG)
investment, as well as initiatives for achieving the Sustainable Development Goals (SDGs), we will aim to realize theongoing improvement of corporate value and achieve a sustainable society by conducting corporate governance more

History of Sustainability Committee Meetings (Over past three fiscal years)
Daterigorously than ever before while pursuing initiatives that pay close attention to society and the environment.

Sustainability-Related Policies and KPIs
Please refer to pages 22 and 23 for an overview of the Mitsubishi Estate Group’s sustainability initiatives and to pages 104
and 105 for information on sustainability-related KPIs and progress toward the accomplishment of the associated targets.

Sustainability (ESG) Section
MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

February 25,
2022

July 7, 2021

•R eview of energy-related targets (SBT, RE)•R eport on Energy and Urban Development Action 2050
• Information on activities for OMY SDGs ACT5 2021 and status of their implementation•S tatus of initiatives toward achieving Mitsubishi Estate Group 2030 Goals for the SDGs

February 8, 2021

• Introduction of renewable energy in Daimaruyu area
• Initiatives for achieving traceability for concrete form panels at Mitsubishi Estate Residence Co., Ltd.
•R
 eport on OMY SDGs ACT5 project• Internal communication measures related to sustainability, etc.

July 30, 2020•R
 oad map for accomplishing Mitsubishi Estate Group 2030 Goals for the SDGs and issue analysis•C onclusion of sustainability-linked loans, etc.

February 10,2020•D iscussions on an implementation plan and checking system aimed at advancing action plans in the Mitsubishi
Estate Group 2030 Goals for the SDGs and a specific action plan for human rights•R eport on joining RE100 and endorsement of recommendations of Task Force on Climate-related Financial
Disclosures, etc.

December 11,
2019•E stablishment of the long-term vision and the medium-term goals in relation to sustainability management•S tatus of response to ESG investment and various benchmarks (selection, issues, etc.), etc.

FY2022

Sustainability Frameworks
Mitsubishi Estate takes a Groupwide approach to sustainability. Chaired by the president & chief executive officer of
Mitsubishi Estate and with the director responsible for sustainability (the executive officer in charge of the Sustainability
Management and Promotion Department at Mitsubishi Estate) as the deputy chair, the Group’s Sustainability Committee
comprises executives in charge of respective functional and business groups and the executive in charge of the Corporate
Group, as well as presidents of major Group companies, and it ensures effective Groupwide promotion of sustainability. The
Sustainability Subcommittee serves as a forum for detailed discussions to prepare for Sustainability Committee meetings.
The Sustainability Committee typically meets twice a year to deliberate on important matters and report on topics
related to sustainability. Prior to the meetings of the Sustainability Committee, the Sustainability Subcommittee conducts preliminary discussions and topic reporting while compiling information on efforts to promote sustainability madeby business groups.
Reports on important matters discussed or reported at meetings of the Sustainability Committee are reported at thefollowing meeting of the Board of Directors by the individual responsible for overseeing sustainability initiatives. This
arrangement allows for oversight by the Board of Directors.
In implementing sustainability-related measures, the director responsible for sustainability oversees the process,while the sustainability managers and staff of each department at Mitsubishi Estate and each Mitsubishi Estate Group
company and of the Sustainability Promotion Executive Office (Sustainability Management and Promotion Department at
Mitsubishi Estate) together head the execution of specific activities and studies.

Major topics•R evisions to energy-related targets (SBT, RE)•R evisions to CSR procurement guidelines and status of supply chain management-related initiatives•R aising of the target for percentage of female managers•R eport on activities for OMY SDGs ACT5 project•S
 tatus of initiatives toward achieving Mitsubishi Estate Group 2030 Goals for the SDGs

FY2021

FY2020External Evaluations of ESG Performance (as of June 2022)
Mitsubishi Estate has been selected for inclusion in the following ESG indices for socially responsible investment.

Board of Directors
ReportSupervision

Sustainability Committee
Committee chair:President & chief executive officer of Mitsubishi Estate
Deputy committee chair:	Executive officer in charge of Mitsubishi Estate
Sustainability Management and Promotion Department
Committee members:	
Executives in charge of respective functional andbusiness groups, the executive in charge of the
Corporate Group, presidents of Major Group companies
Observers:	
Chairperson, standing statutory auditors, and others as observers

Chief Sustainability Officer
Dow Jones Sustainability Asia PacificIndex, 2nd consecutive year

Instruction

FTSE Blossom Japan Index,
6th ­consecutive year

Executive officer in charge of Mitsubishi Estate
Sustainability Management and Promotion Department

Sustainability Subcommittee
Committee chair:	General manager of Sustainability Management andPromotion Department
Committee members:	Executive officer in charge of Mitsubishi Estate
Sustainability Management and Promotion Department,
general managers of line and staff departments forfunctional and business groups, the executive incharge of the Corporate Group, and sustainability
managers and staff at Major Group companies

Deliberation/
ReportSustainability Promotion
Executive OfficeSustainability managers
and staff

Mitsubishi Estate
Sustainability Management
Promotion and Department

Each Mitsubishi Estate
department and Mitsubishi
Estate Group company

MSCI Japan Empowering Women
S&P/JPX Carbon Efficient Index,
MSCI Japan ESG Select Leaders
Select Index,*1 5th consecutive year
5th consecutive year
Index,*1 6th consecutive year

Monitoring Frameworks
The Mitsubishi Estate Group monitors progress toward the accomplishment of its targets for the key themes and key
performance indicators (KPIs) described in Mitsubishi Estate Group 2030 Goals for the SDGs (see pages 104 and 105).
Single-year targets and initiatives will be defined in the annual plans for business groups and functional groups, and thesetargets and initiatives will be monitored. Information on the status of target accomplishment and details of initiatives arecompiled by the Mitsubishi Estate Sustainability Management and Promotion Department, which functions as the secretariat for sustainability initiatives. This information is then reported to the Sustainability Committee and the Sustainability
Subcommittee. After meetings of the Sustainability Committee, the executive officer in charge of the Mitsubishi Estate
Sustainability Management and Promotion Department, who is responsible for overseeing sustainability initiatives, reportson the deliberations of the meeting in question at the following meeting of the Board of Directors.
Moreover, the accomplishment of annual plan targets is used as one of the qualitative evaluation items for determining the remuneration paid to officers.

56

FTSE4Good Global Index,
21st c­ onsecutive year

S&P Global Sustainability Yearbook
Member 2022

SOMPO Sustainability Index,
11th consecutive year

GRESB Public Disclosure,
5th ­consecutive year

CDP Climate Change 2021
Questionnaire, “A–”CDP Water Security
Questionnaire 2021, “A–”

Certified in 2022 as Outstanding
Health and Productivity
Management Organization

SUPPLIERENGAGEMENTLEADERR E A LE S T A T E

2021

sector leader 2021

5-Star Rating, the highest rank,
in GRESB Standing Investments
Benchmark,*2 2nd consecutive year

5-Star Rating, the highest rank,
in GRESB
Development Benchmark*3;
selected as a Sector Leader for
offices in the Asian region

CDP 2021 Supplier
Engagement Leader*1 Please refer to the following disclaimer for details on MSCI. http://info.msci.com/l/36252/2017-06-27/kj5n9b*2 Assessment of the performance of existing portfolios*3 Assessment of new development and large-scale renovation portfolios

57Environment

Environment

Target and Initiative Policies 
Sustainability is included as part of the Mitsubishi Estate Group Guidelines for Conduct based on the recognition that the global
environment is an important issue needing to be considered in business activities alongside customers, shareholders, and otherstakeholders. As a specific provision, these guidelines state that we actively work to address climate change and other global
environmental issues. The Group develops, holds, and operates a diverse portfolio of assets, and we realize that eliminating
carbon emissions from real estate assets and managing waste production from facilities are important tasks to be addressed.
Based on these policies and issues as well as on the opportunities and risks described on page 23, we have established the following KPIs and are acting based thereon.
	Please refer to the Mitsubishi Estate Group’s sustainability website for information on other KPIs and data.
https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/

KPIs
Targets
Reduce Scope 1 and Scope 2 emissions by 70% or more and Scope 3 emissions by 50% or more by FY2031
compared with FY2020 emissions
Achieve net-zero emissions in Scope 1, Scope 2, and Scope 3 by 2050

Sustainability (ESG) Section

CO2 emissions
Renewable energy (%)

100% by FY2026

Waste disposal (kg/m2)

20% reduction per m2 by 2030, compared with FY2020

Waste recycling rate (%)

90% by 2030

Establishment of New Mitsubishi Estate Group Greenhouse Gas Emissions Reduction Targets with aView to Realizing a Decarbonized Society Transition to Renewable Energy Sources for 100% of Electricity Used at All Company-Owned Buildings
and Commercial Facilities in Tokyo and Other Major Urban Areas After conducting a major review of its greenhouse gas (GHG) emissions reduction targets, which were announced in 2019, theMitsubishi Estate Group established the following new targets, which aim for an even higher percentage of such reductions.
Mitsubishi Estate acquired certification for the targets from the Science Based Targets initiative (SBTi)*1 in June 2022. These newtargets are based on the 1.5 ºC scenario (scenario for reducing GHG emissions in order to limit the average global temperaturerise during this century to well below 1.5 ºC versus pre-industrial levels) of the SBTi and are also in line with the Net-Zero
Standard published by the SBTi in October 2021.

As a new target for achieving RE100,*1 the Mitsubishi Estate Group aims to achieve a renewable energy rate of 100% by FY2026. To that
end, we have realized a renewable energy rate of 30% in FY2022 and aim to increase this rate to 50% in FY2023 by transitioning to electricity derived from renewable energy at Company-owned buildings*2 in the Marunouchi area and other major urban areas. We adopted
the aforementioned new target based on the forecast that
we will have achieved around a 50% renewable energy
rate by FY2023. The renewable electricity introduced by
the Group complies with RE100, combining green electricity and FIT non-fossil-fuel energy certificates with tracking
information. Since the buildings will be powered entirely
by renewable electricity,*3 the tenants of said buildings will
effectively be deemed to be using renewable electricity.

Reduce Total Mitsubishi Estate Group GHG Emissions in the Value Chain as Follows Compared with the Base Year of FY2020 (Base Year)
By FY2031

Reduce Scope 1 and Scope 2 emissions by 70% or more and Scope 3 emissions by 50% or more

By 2050	Achieve net-zero emissions (reduce Scope 1, Scope 2, and Scope 3 emissions by 90% or more and neutralize residual emissions*2)
MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Scope 3: Emissions from other business activities (building construction, use of sold real estate, etc.)
Of the emissions for FY2020 (base year), Scope 3 emissions mainly resulted from the use of construction materials in building construction and the use of sold products.
In September 2021, we opened the Royal Park Canvas Sapporo Odori Park, Japan’s first high-rise, hybrid-wooden hotel, which utilizes timber produced in Hokkaido. The amount of lumber used in the structural frames of the Royal Park Canvas Sapporo Odori Parkis the largest in Japan, enabling the hotel to curtail approximately 1,380 tons of CO2 emissions compared with a building madeentirely out of reinforced concrete. In this way, the Royal Park Canvas Sapporo Odori Park helps in the fight against global warming.
Emissions derived from construction materials are an issue that we need toaddress throughout the entire supply chain of development and construction.
Accordingly, we will deepen our collaboration with architectural design companies, construction companies, construction material manufacturers, and otherstakeholders in an effort to reduce these emissions.
Furthermore, for future emissions from the use of real estate purchased bycustomers, we are working to introduce renewable energy in such real estate in
the same manner as we are doing via our Scope 1 and Scope 2 initiatives at
Company-owned properties. We are also taking steps to reduce per-unit emissions via the introduction of energy-efficient equipment. In these ways, we areworking to reduce overall emission amounts. Please see page 60 for details on
the CO2 emissions reduction targets of Mitsubishi Estate Residence Co., Ltd.,Royal Park Canvas Sapporo Odori Park
Cabin floor of a superior twin room with a park viewwhich handles condominium sales.

Overview of the Mitsubishi Estate Group’s Decarbonization Pathway toward FY2050*3

Toyosu Foresia

Based on the SBTi’s Net-Zero Standard (1.5 ºC Scenario)

New Medium- to Long-Term Targets: Scope 1 Emissions + Scope 2 Emissions

476 thousand tons

FY2020

Reduction of 70% ormore in value chain
Net-zero emissions(VC) emissions
by 2050
by FY2031
	Over 90% reduction
in VC emissions
	Neutralization of the
Aim to Achieve
residual 10% or lessRE100
of emissions
by FY2026

FY2026

FY2031

Neutralization

2050

New Medium- to Long-Term Targets: Scope 3 Emissions
Reduction of 50%
or more in VC ­emissions
by FY2031
3,560 thousand tons

FY2020

FY2031Net-zero emissions
by 2050
	Over 90% reduction
in VC emissions
	Neutralization of theresidual 10% or lessof emissions

Neutralization

2050*1 An international initiative aiming to limit the average global temperature rise resulting from climate change to below 2 ºC above pre-industrial levels*2 Emissions that remain unabated within the value chain in the target fiscal year are termed “residual emissions.” The SBTi standard requires neutralizing any residual emissions outside thevalue chain using forest-absorption and carbon-removal technologies to counterbalance the impact of these unabated emissions and to achieve net-zero emissions.
*3 Total emissions for Scope 1, Scope 2, and Scope 3 in FY2020 differ from the figures disclosed on the Group’s corporate website, etc., due to the transfer of tenant emissions in leased realestate from Scope 2 to Scope 3.

The primary sources of the Group’s CO2 emissions in each scope and the initiatives to reduce and neutralize these emissions are as follows.
Scope 1: Direct burning of fuel (gas and heavy oil) from the heating supply business and the operation of emergency power generators
Of the emissions for FY2020 (base year), nearly all of the Scope 1 emissions resulted from the use of city gas in the heating supply
business. Although these emissions reductions are currently unable to be calculated as part of reduction amounts under the SBTi,
we will introduce carbon-neutral city gas using credits gained from forest absorption to help neutralize emissions outside thevalue chain.
As of November 2021, Marunouchi Heat Supply Co., Ltd., has replaced all of the city gas it uses at its district heating and coolingplants with carbon-neutral city gas.
Scope 2: Direct burning of fuel due to use of purchased electricity, steam, cold and hot water, etc.
Of the emissions for FY2020 (base year), the majority of Scope 2 emissions resulted from electricity consumption.
In addition to further introducing renewable energy at our owned properties, we will aim to achieve a high level of environmental
performance and energy efficiency at our properties under development. We will also actively pursue the acquisition of Zero Energy
Building (ZEB) and Zero Energy House (ZEH) certifications, among others.

*1 RE100 is a collaborative initiative bringing together corporations committed to 100%
renewable power. Joining forces, these corporations send a powerful signal to investors and governments aiming to accelerate the shift to renewable electricity. In
Japan, the Japan Climate Leaders’ Partnership (JCLP) supports membership andactivities by Japanese corporations as a regional RE100 partner.
*2 “Company-owned buildings” refers to buildings and commercial facilities ofwhich the Company owns a 50% equity stake or higher, excluding buildings
owned in the capital-recycling business and buildings slated to be redeveloped.
Regarding buildings and commercial facilities of which the Company owns lessthan a 50% equity stake, the Company intends to introduce renewable energybased electricity at certain properties in collaboration with building operatorsand other parties.
*3 Electricity supplied by gas cogeneration systems, etc., is generated using carbonneutral city gas.

Tokiwabashi Tower

MARK IS minatomirai

Acquisition of SITES® Gold Certification for Tokiwabashi Tower and TOKYO TORCH Park, Thereby
Becoming the First Urban Mixed-Use Development Project in Japan to Acquire Such Certification 
TOKYO TORCH Tokiwabashi Tower and TOKYO TORCH Park have acquired SITES® Gold Certification, an environmental certificationthat evaluates primarily the sustainability of landscapes, becoming the first urban mixed-use development project to receive sucha certification in Japan.
Furthermore, these sites have been newly registered under Edo-Midori Green Area, a system by the Tokyo Metropolitan
Government for registering and publicly announcing green spaces where native plant species are actively planted and where biodiversity is conserved. With this registration, TOKYO TORCH Tokiwabashi Tower and TOKYO TORCH Park have now acquired fiveenvironmental certifications—the others being DBJ (Development Bank of Japan) Green Building Certification, Social andEnvironmental Green Evaluation System (SEGES) certification, and Association for Business Innovation in Harmony with Nature
and Community (ABINC) certification—bringing them to a globally leadinglevel in terms of environmental awareness. Going forward, we will continue
to promote urban development with aneven greater awareness of the environment, with the goal of opening all sitesof the TOKYO TORCH project by FY2028.
TOKYO TORCH Park

58

59

TCFD

Environment
Mitsubishi Estate Residence Co., Ltd., Aims for a 50% Reduction in CO2 Emissions by 2030
(compared with FY2020) 
In January 2022, Mitsubishi Estate Residence Co., Ltd., announced its target to reduce
CO2 emissions by 50% by 2030 compared with 2019. To accomplish this target, thecompany is formulating CO2 emissions reduction strategies and accelerating the following initiatives in accordance with such strategies.
1 Visualizing CO2 Emissions during Construction and After Tenant Move-In
With the aim of mapping out a specific path for reducing CO2 emissions, Mitsubishi
The Parkhouse Shinurayasu Marine Villa
Estate Residence led the way in the industry by establishing an original method for calculating CO2 emissions during the construction of new condominiums and after such a condominium has been delivered to a tenant.
The CO2 emissions from the supply chain calculated using this original method were recognized as part of the Mitsubishi EstateGroup’s total emissions, which have been certified by the SBTi. Furthermore, this calculation method has enabled Mitsubishi Estate
Residence to visualize CO2 emissions throughout the supply chain, including energy use volume from the time of construction to 50
years after tenant move-in. Through this visualization, Mitsubishi Estate Residence came to understand that CO2 emissions from theuse of concrete and other activities during construction and emissions from tenant lifestyles after move-in account for a significant
percentage of the Group’s total emissions. Accordingly, the company has commenced the specific initiatives listed below.

 ransitioning to Non-Fossil Fuels for All Electricity Used at Condominiums (Carbon Offsets via Electricity with Non-­FossilT
Fuel Energy Certificates)
At its The Parkhouse brand condominiums, Mitsubishi Estate Residence has ensured that energy purchased via high-voltage collective
power systems comes with a non-fossil-fuel energy certificate attached. At its The Parkhabio brand rental apartments, the company has
enabled residents to enter into electricity contracts with non-fossil-fuel energy certificates after they move in. By doing so, Mitsubishi Estate
Residence will realize the supply of electricity with non-fossil-fuel energy certificates and without CO2 emissions at all of its new condominiums and new rental apartments by 2030. Electricity accounts for roughly 60% of the energy used by customers in their residences.* Bytransitioning to electricity generated without the use of fossil fuels, customers are able to help reduce CO2 emissions in their daily lives.

Sustainability (ESG) Section

2* Based on the findings of Mitsubishi Estate Residence Co., Ltd.

 nsuring That All Condominiums Meet the ZEH-M Oriented Standard (All Properties to Be Sold or Available for Lease
E
Starting from FY2026)
As a general rule, the standard specifications of Mitsubishi Estate Residence’s new condominiums and new rental apartments
will meet or exceed the ZEH-M Oriented Standard.* Since 2020, Mitsubishi Estate Residence has been making efforts to have its
properties comply with ZEH (zero-energy house) standards. The company will continue to gradually move forward with making
applicable properties compliant with ZEH standards, in order to have all of its properties for sale or for lease meet or exceed the
ZEH-M Oriented Standard by FY2026. This effort to meet or exceed the ZEH-M Oriented Standard will make it possible for customers to reduce the energy they use by around 20%, thereby contributing significantly to CO2 emissions reductions.

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

3

* Excluding joint project development and certain other properties

4 Expanding the Installation of Solar Panels on Condominiums
Since 2010, Mitsubishi Estate Residence has been working to utilize renewable energy bymaking it a general rule to introduce “soleco,” an energy system that combines high-voltage
collective power systems with solar power systems, at new condominiums with 40 units ormore. The company has also introduced “soleco+”* at its rental apartments. In addition,
Mitsubishi Estate Residence will proceed with a policy of installing solar panels on new condominiums with less than 40 units where “soleco” is not slated for introduction.

Solar panels installed on the roof of a condominium* A system that makes electricity renewable via the utilization of electricity generated through solar power and electricity with
non-fossil-fuel energy certificates

5 Reducing CO2 Emissions during Construction
As part of its efforts to reduce CO2 emissions during construction, Mitsubishi Estate Residence will gradually transition to using
concrete mixed with blast furnace cement, which emits fewer CO2 emissions, as a general rule for on-site piling in all new condominiums for sale or rent that it develops going forward. The company has already introduced such concrete at eight properties,
including Atsugi First Avenue, Chuo Nihonbashi Hisamatsucho, and The Parkhabio Bunkyo Edogawabashi.

Displaying the CO2 Emissions of Customers (after Move-In)
In 2013, Mitsubishi Estate Residence became the first company in the condominium industry to attempt to visualize the energy use ofcustomers in their daily lives after move-in by distributing Condominium Household Account Books. Since then, the company has been
disclosing air-conditioning costs, which are impacted by insulation, per residence and communicating to customers the cost of waterand other utilities when using facilitates at newly constructed The Parkhouse brand condominiums. Mitsubishi Estate Residence has
also been introducing ways for residents to be more conscious of the environment in their daily lives. Furthermore, since October 2021
Mitsubishi Estate Residence has been disclosing the CO2 emissions of each unit, thereby raising residents’ level of environmental awareness and encouraging them to reduce their individual CO2 emissions. In 2022, Mitsubishi Estate Residence also began working on a version
of Condominium Household Account Books for renovated condominiums in its business buying back and reselling individual units.
In recognition of its Condominium Household Account Books, Mitsubishi Estate Residence was selected in 2020 as a participatingcompany in the “CO2 reduction action (zero emissions) movement—a sustainable society created by consumers and businesses,” aninitiative of the Tokyo Metropolitan Government.
660

Environment

Regarding the TCFD’s Recommendations In accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), we formulated two
future scenarios, including the below 2 ºC scenario, and analyzed the future impact of climate change on the Mitsubishi EstateGroup’s primary businesses (offices, retail facilities, and housing). As follows, we have disclosed an overview of the four themesof corporate governance, strategy, risk management, and metrics and targets set out under said recommendations, taking into
consideration the analysis results. See below for details.
	Please refer to the Mitsubishi Estate Group website for information on the TCFD. Information Disclosure Based on TCFD Recommendations:
https://mec.disclosure.site/e/sustainability/activities/environment/tcfd/

Corporate Governance 
Important matters pertaining to sustainability, including climate change, are deliberated and reported on at meetings of the
Sustainability Committee, chaired by the president & chief executive officer of Mitsubishi Estate, with the chief sustainability officer (the executive officer in charge of the Sustainability Management and Promotion Department at Mitsubishi Estate) as thedeputy chair. Important matters discussed or reported at Sustainability Committee meetings are also reported to and supervisedby the Board of Directors.

Strategy In regard to climate change-related strategy, we have formulated two scenarios in accordance with the extent of the following
global response to climate change. We have established a strategy in light of analysis of the impact on our businesses and identified major risks and opportunities in each scenario.

Overview of Scenario Analysis Result / Major Impact / Approach and Strategy Going Forward 1

 .5 ºC–2 ºC Scenario (scenario in which the response to climate change makes progress due to the strengthening of1­government regulations and other policies)[Scenario overview]Climate change measures make progress as government environmental regulations are strengthened.

[Major impacts]

 here is a likelihood of a rise in the cost of construction materials, which are carbon intensive, associatedTwith the introduction of a carbon tax.

		

 here is a likelihood of a decline in rents as vacancy rates rise for buildings without advanced environT
mental performance and leasing periods are extended.
On the other hand, it is assumed that there would be an opportunity to maintain and increase competitiveness in the market by introducing electricity sourced from renewable energy and implementing otherenvironmental initiatives.

2 ºC Scenario (scenario in which the response to climate change makes insufficient progress, global warming worsens, and4natural disasters intensify and increase)[Scenario overview]

Natural disasters intensify and increase as the response to climate change makes insufficient progress.

[Major impact] lthough there is a likelihood that costs due to temporary flood damage and other disasters wouldA
increase, the damage is not expected to be serious given the prior implementation of industry-leading
measures at Company properties.

[Approach and strategy going forward]
In addition to switching existing electricity contracts, we are examining a variety of methods for procuring all kinds of renewableenergy, including corporate power purchase agreements (PPAs) and green power certificates (including overseas power certificates). Moreover, we are looking to leverage new technologies as we aim for further reductions in CO2 emissions.

Risk Management 
To achieve the targets set out in Mitsubishi Estate Group
2030 Goals for the SDGs, in managing climate change risks,
we incorporate action plans into annual plans for each business group and functional group and have commenced
monitoring and management of the status of their progresssince FY2021 at meetings of the Sustainability Committee
and at subsequent meetings of the Board of Directors on abiannual basis.

Metrics and Targets 
CO2 Emissions (Mitsubishi Estate Group; Scope 1, Scope 2,
and Scope 3)[Targets]	Reduce Scope 1 and Scope 2 emissions
by 70% or more and Scope 3 emissions
by 50% or more by FY2031 comparedwith FY2020 emissions
Achieve net-zero emissions in Scope 1,
Scope 2, and Scope 3 by 2050
FY2022 result: 2,534 thousand t-CO2
Renewable Energy Rate (Mitsubishi Estate Group)[Target]FY2026: 100%

FY2022 result: 31%

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Diversity & Inclusion

Diversity & Inclusion

Target and Initiative Policies 
The Mitsubishi Estate Group recognizes that respect for human rights and accommodation of diverse human resources andworkstyles are crucial to management and business activities. Accordingly, the Mitsubishi Estate Group Guidelines for Conduct
include provisions related to respect for human rights and diversity and empowerment of individuals, and the Mitsubishi EstateGroup Human Rights Policy has been established to direct steadfast efforts based on these guidelines. Based on this humanrights policy, and for the purpose of empowering female employees, the Company has formulated an action plan in accordancewith Japan’s Act on the Promotion of Female Participation and Career Advancement in the Workplace and with other plans for
specific human rights themes. We have established the following KPIs and are acting based thereon in line with these plans andthe opportunities and risks described on page 23.
Action plan based on Japan’s Act on the Promotion of Female Participation and Career Advancement in the Workplace
https://mec.disclosure.site/e/sustainability/activities/social/diversity/pdf/Empowerment_of_Women_EN.pdf
Mitsubishi Estate Group Human Rights Policy
https://mec.disclosure.site/e/sustainability/activities/social/human-rights/pdf/human_rights_policy_20180401.pdf

Sustainability (ESG) Section

KPIs
Ratio of female managers

Targets
Higher than 20% by FY2031, 30% by FY2041, and 40% by FY2051

Ratio of male employees taking childcare leave of absenceOver 75% by FY2026 and 100% by FY2031

Ratio of female employees taking childcare leave of absenceUse rate of lumber that complies with the Sustainable Sourcing Code*1 or an equivalent in office buildings and housing constructed using concrete form panels*2

100% each year until FY2031

Topic
The Mitsubishi Estate Group believes that human resources are an important asset that play a central role in executing
Long-Term Management Plan 2030 and creating value for society. Please tell us about the kind of human resources
Mitsubishi Estate will require going forward, as well as its human resource development policies and strategies.

The Mitsubishi Estate Group has defined the human resources it requires as people who possess the following five traits: visionary, professional, with integrity, team-building skills, and a passion for challenges and innovation. In a business environmentchanging at an unimaginable pace, the Mitsubishi Estate Group feels that human resources with a passion for taking on challenges and innovation will be even more important in the future. Beyond possessing the spirit to take on challenges without beingbound by convention, we expect all Group employees to leverage internal and external networks to identify issues from fresh
perspectives as well as to augment each other’s strengths through collaboration. To this end, the Mitsubishi Estate Group has
instituted various in-house programs and initiatives, such as the Borderless! x Socializing! Initiative,*1 the New Business Proposal
System, the Secondary Job Program, and the 10% Rule System, which is geared toward business model reform. We believe that,as a result of these programs and initiatives, the atmosphere at the Company has been enlivened and that a corporate culture inwhich employees can freely take on challenges is steadily being fostered.

People with Vision

100% by FY2031*1 Defines standards and operational procedures for ensuring procurement with consideration for sustainability with respect to international agreements and codes of conduct in fields relevant
to sustainability*2 Framework composite boards made by putting ready-mixed concrete into frameworks and used in construction of concrete buildings

Please refer to pages 104 and 105 for information on the accomplishment of KPI targets and an overview of related initiatives.

Definition

People who can visualize what they want to achieve and have the determination anddynamism to do so

Desired strengths

The ability to create and promote their vision with determination and courage

Definition

People who develop their skills and knowledge as a professional in both their field of specialization and the real estate industry and who have the ability to drive business forward

Desired strengths

The ability to make sound judgments, be customer-oriented, and drive business forward
while also being productive and possessing risk management skills as well as professionallevel skills and knowledge

Professional People

Please refer to the following website for information on other KPIs and data.
https://mec.disclosure.site/e/sustainability/activities/esg-data/

People with Integrity*

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Message from the Director in Charge of Human Resources Hitoshi Kubo
Director

Definition

People with high ethical standards, who act with integrity and fairness, and who build good
relationships with those around them
* In the spirit of “Shoji Komei,” one of the Three Principles of the Mitsubishi Spirit, which form the Mitsubishi EstateGroup’s guidelines for corporate activities

Desired strengths

Open-mindedness and high ethical standards

People with Team-Building
SkillsDefinition

People capable of carrying out human resource development and management in order toincrease the competitiveness of the organization

Desired strengths

The ability to nurture talent, work as part of a team, and deploy management skills

People with a Passion for
Taking On Challenges andInnovation

Definition

People who are not bound by precedent or convention and who have the spirit to take onchallenges and act without fear of failure

Desired strengths

Challenge-oriented and innovative

Provisions for respect for human rights and diversity and the empowerment of individuals are included within the Mitsubishi
Estate Group Guidelines for Conduct. Based on these guidelines, we are actively promoting the development of various systems
that serve as the foundation for all employees to take on challenges and create innovation.
Regarding efforts concerning respect for human rights and diversity of our human resources, in FY2022 we upwardly revised
our targets for the percentage of female managers.
The Mitsubishi Estate Group has been endeavoring to create an environment in which female employees can continue working
and play an active role without feeling the need to resign due to life events. Accordingly, we set a target of increasing the percentage of female managers to 10% by 2030. However, taking into consideration its vision for the future, the Group subsequently
decided to double the percentage of female managers to higher than 20% by FY2031, while setting long-term targets of 30% by
FY2041 and 40% by FY2051 in this regard. To achieve these targets, alongside enhancing our recruitment activities, we will
expand our personnel systems to enable flexible workstyles, hold in-house roundtable discussions on balancing work and childcare commitments, which are open to all employees, and provide information to employees regarding external seminars, among
other initiatives.
In order to encourage the empowerment of individuals, meanwhile, the Mitsubishi Estate Group is committed to both creating
an environment where employees can focus on their work with peace of mind and fostering a corporate culture in which employees feel more inclined to take on challenges—in other words, realizing a vibrant workplace. We are making efforts to expand
personnel systems that consider the comfortableness of working environments, the well-being of employees, and work–life integration*2 at various stages of employees’ lives. In addition, the Group places particular importance on creating an environment inwhich all employees can participate in in-house discussions regardless of gender, job title, employment type, or age and canfreely express ideas and exchange opinions by engaging in dialogue, thereby achieving a diversity of views.
Moving forward, we will continue to reflect the views of our employees in our initiatives as we strive to create an even morevibrant workplace where diverse human resources can play an active role in a variety of workstyles to spur innovation, which inturn contributes to the sustainable growth of the Mitsubishi Estate Group.
*1 Activities aimed at facilitating Companywide workstyle reforms and improving work efficiency*2 Achieving overall fulfillment by viewing work and life as one, without creating barriers between them

62

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Diversity & Inclusion
Diversity & Inclusion

Examples of Mitsubishi Estate’s Initiatives New Business Proposal System—Mitsubishi Estate Group Innovation Challenge (MEIC)
Through the New Business Proposal System, launched in 2009, we have extensively soughtbusiness proposals and ideas from employees. With more than 130 applications received todate, the system has realized new initiatives that have helped diversify the Group’s sources of
earnings and strengthen its core business, such as GYMM, a pay-as-you-go gym, andEcorfurni, a business reselling used office furniture.
In 2021, in light of a rapidly changing business environment, we expanded the scope of this system to encompass Group companies and launched a new program, the Mitsubishi Estate Group Innovation Challenge (MEIC), in order to further promote thissystem. We will continue striving to strengthen ­systems for encouraging employees to take on challenges with the aim of spurring Groupwide innovation.

Sustainability (ESG) Section

At Mitsubishi Estate, we believe in the importance of promoting work–life integration, which involves comprehensively enhancing
work and everyday life to a point where they become a single entity, without creating barriers between the two. In order to effectively
realize such a balance, we have established various systems that allow employees to choose from a diverse range of workstyles.
Below is a list of Mitsubishi Estate’s various programs, benefits, and initiatives related to the promotion of employees’ health andwork–life integration.
Name of Program

Flextime programRegarding the Borderless! x Socializing! Initiative
On April 1, 2017, we established the Work Style Reform Promotion Committee, chaired by the president & chief executive officer,
with the aim of strongly promoting the top-down reform of our corporate culture, the streamlining of business processes, and thecreation of new value through increased productivity. From August 2018, the committee was renamed the BxS (Borderless andSocializing) Committee. The BxS Committee’s promotion secretariat plays a central role in developing a variety of activities aimed
at Companywide workstyle reforms and improving operational efficiency.
Every year, the secretariat conducts a survey on the status of the Mitsubishi Estate’s operational efficiency, workstyles, andcorporate culture and reports the results of the survey Companywide. Any issues that become apparent from the results of thesurvey become a theme for discussions centered on the secretariat from the following year onward.

The Secondary Job Program
The Secondary Job Program,* which is based on a permit system, was established in FY2020.
* Excludes businesses that have a conflict of interest with Mitsubishi Estate, such as competitors. Allows for up to 50 hours of work in a single month

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Establishment of Various Systems for Promoting Work–Life Integration

Currently, around 50 Mitsubishi Estate employees hold secondary jobs. The main types of secondary jobs held include sports
instruction as an extension of one’s hobby, work that utilizes existing certifications and expertise, document creation andanalysis-related work for the purpose of improving one’s skills, consulting for regional corporations, and assisting withfamily businesses.
In addition to encouraging employees to accept various challenges that lead to their growth and career advancement, theCompany is making efforts to not only enable employees to return the knowledge and connections they have obtained throughtheir secondary jobs to our core businesses but also create an environment for employees to work with more satisfaction
through self-actualization.

Note: As a provisional measure to prevent the spread of COVID-19 infections, currently (as of the publication of this integrated
report in September 2022), core working hours are not compulsory.

Childcare leave of absenceHolding of Events Related to Gender Diversity

Can be used until the end of the fiscal year in which a child turns three years old(14 days of paid leave from the day on which childcare leave starts)
Note: The legally stipulated period in Japan is until a child’s first birthday as a general rule (or until a child turns two years old
as a maximum in special circumstances).

Nursing care leave of absence

Can be used for a maximum of three years (can be divided into shorter durations up to
three times)

Nursing care leave of absence forchildrenCan be used until the end of March after a child begins third grade of elementary school
Can be used as a special paid leave of absence until a child enters elementary school

Nursing care leave of absence forfamily members

Can be used as a special paid leave of absence

Shortened working hours for childcare

Can be used until the end of March after a child begins third grade of elementary school
Possible to shorten daily working hours by up to 2.5 hours in increments of 15 minutes

Shortened working hours for nursingcare

Can be used within three years of the start of use for each eligible person in a family
Possible to shorten daily working hours by up to 2.5 hours in increments of 15 minutes

Flextime program for pregnant women,
those caring for children, and thosenursing family members

Can be used during pregnancy
Can be used until the end of March after a child begins third grade of elementary school
Can be used within three years of the start of use for each eligible person in a family(Possible to shorten daily working hours by up to 2.5 hours in increments of 15 minutes)"Refresh” vacations

Special paid vacations given every five years after five consecutive years of employment
Travel costs paid by the Company after either 25 or 30 years of consecutive employment (upper limit imposed)

Accumulated vacation

Possible for employees to accumulate up to 90 days of unused paid vacation, which canbe used for the recovery of illness of an employee or illness of a family member
thereof, a spouse’s or partner’s childbirth, participation in volunteer activities, childcare
or nursing care for family members, among other reasons

Reemployment program forformer employees

Can be used following a specific interview when an employee resigns due to childcare
reasons, nursing care for family members, changing jobs, or starting a business

Leave system for the transfer of a
spouse or partner

Possible to take up to three years’ leave for accompanying a spouse or partner on a relatively short transfer (overseas traineeship / study of approximately one to two years)

Transfer system in conjunction withthe transfer of a spouse or partner

Possible for an employee in a position not normally subject to transfers to transfer jobs
within the Group when wishing to relocate due to the transfer* of a spouse or partner,
only when it is organizationally feasible

Regarding the 10% Rule System
The newly established 10% Rule System seeks to have employees dedicate 10% of business hours to performing activities
outside of their regular duties with the aim of promoting business model reform.
The rule includes initiatives that both directly and indirectly lead to business model reform, such as initiatives related to improvements in operational efficiency and corporate culture reform.
Specific examples include preparing applications for the New Business Proposal System, gathering information and building
networks with external parties, and holding internal events. Employees are free to choose how they use their time and are currently making efforts under a wide range of themes. Many employees have reported increased job satisfaction as a result of
being given opportunities to take on new challenges outside of their regular duties.

Overview of Program

Working hours are as follows.
Core working hours (period when eligible employees are required to attend work)
10:00–15:00
Flexible time (period when eligible employees can work according to their choice)
Period for starting work: 06:00–10:00; period for finishing work: 15:00–20:00* Limited to JapanIn March 2022, Mitsubishi Estate held an event at its Head Office on
International Women’s Day with the aim of deepening employees’ understanding of gender diversity. We invited an external lecturer to conduct
the internal event, which was centered on the theme of “leveraging
diverse strengths.” Furthermore, the Company’s employee cafeteria
SPARKLE was decorated with mimosa flowers—the symbol ofInternational Women’s Day—and featured a menu inspired by the event.

Hourly paid leave program

Paid leave available in one-hour units (using eight hours is equivalent to using one dayof paid leave)

Teleworking program

Possible to work at a location other than a Company site, such as a satellite office­affiliated with the Company or at home

Expense subsidy program based on­cafeteria plan

Provision of subsidies by the program for expenses incurred by employees throughhealth promotion activities (sports activities and checkups not covered by insurance, etc.)

Consultations with occupational healthphysicianInitiative providing consultations with an occupational health physician for employees,
including managers, who have exceeded the 80 hours of statutory monthly overtime work

“Positive Off” Movement

Initiative for setting targets for the number of days of paid leave taken and encouraging
employees to take paid leave

Decorating the employee cafeteria with mimosa; the flowers were given
away to employees

6465Diversity & Inclusion
Diversity & Inclusion

Policy on Human Rights Initiatives in Our International Business 

As a member of society, the Mitsubishi Estate Group reaffirms its acknowledgment of the importance of respect for human rights.
Based on this acknowledgment, we established the Mitsubishi Estate Group Human Rights Policy on April 1, 2018, with the aim offulfilling our responsibility to respect the basic human rights of all Group employees as well as all stakeholders. The Company
has extensively informed parties inside and outside the Group of the policy, which was formulated and published under the nameof the president & chief executive officer (CEO) of Mitsubishi Estate Co., Ltd., following deliberation and approval by the Executive
Committee and the Board of Directors.

When examining potential business activities in Asia, which generally sees many cases of human rights violations, the Mitsubishi
Estate Group carries out human rights due diligence using a checklist to confirm the absence of matters of concern, such as
forced evictions, in the relevant development area. We use the checklist results as the basis for our decision-making on whether
to engage in a given business activity. Specifically, we check a range of matters based on the concept of free, prior, and informed
consent. Confirmation is sought on matters including whether opportunities have been granted for discussions in a free and safe
setting, whether dialogue is not one-sided, whether language and conduct could not be defined as intimidatory, whether forced or
violent exclusions have not taken place, and whether relocation to an alternative location with an appropriate standard of living
has been guaranteed. In addition, the Group pays particular attention to verifying the circumstances of women, children, seniorcitizens, indigenous peoples, immigrants, racial and ethnic minorities, and other vulnerable individuals and groups in society, as
they are more likely to be affected by human rights violations.

Mitsubishi Estate Group Human Rights Policy
https://mec.disclosure.site/e/sustainability/activities/social/human-rights/pdf/human_rights_policy_20180401.pdf

Sustainability (ESG) Section

Launching and Holding the Construction and Real Estate Human Rights Due Diligence Study Group 
Acting as the organizer, Mitsubishi Estate launched the Construction and Real Estate Human Rights Due Diligence Study Group in
September 2018 with the participation of eight real estate and construction companies.
The United Nations Guiding Principles on Human Rights call on companies to avoid causing and exacerbating direct negative
impacts on human rights as well as to endeavor to avoid and mitigate any adverse impacts on human rights with which they areindirectly involved in all facets of their business, including in their value chains. In light of this call, Mitsubishi Estate establishedthe study group in collaboration with other companies in the real estateindustry and with construction companies, with the aim of developing mechanisms to ensure human rights due diligence that also encompasses the
supply chain.
The study group identifies impacts on human rights arising from businessactivities and investigates and researches methods for addressing suchimpacts in order to fulfill the responsibilities called for by the United Nations
Guiding Principles on Human Rights. Specifically, these responsibilities are to
avoid infringing on the human rights of others and to devise measures toprevent, mitigate, and correct human rights violations with which study
group participant companies are involved.

Supply Chain Management Initiatives Establishing Our Supplier Code of Conduct
Mitsubishi Estate revised the Mitsubishi Estate Group CSR Procurement Guidelines, which were established in April 2016, in orderto enact the Mitsubishi Estate Group Supplier Code of Conduct (hereinafter, “the Supplier Code of Conduct”) on April 1, 2022. The
goal of the revision was to promote sustainability and environmental, social, and governance (ESG)-related initiatives in the entire
supply chain of the Group. As human rights and labor issues as well as climate change and other issues grow more serious, theSupplier Code of Conduct stipulates items that must be observed in the business activities of the Group to achieve its goal of creating a sustainable and truly meaningful society.
Mitsubishi Estate Group Supplier Code of Conduct
https://mec.disclosure.site/e/sustainability/activities/social/supply-chain/pdf/mec202204_Supplier_Code_of_Conduct_e.pdf

Major Items in the Supplier Code of ConductEstablishment of corporate ethics
 nvironmental conservation and reduction of environmenE
tal impact

 ocal communities, indigenous peoples’ rights, andL
cultural heritage

Respecting the Human Rights of Non-Japanese Technical Interns 

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Compliance with laws and regulations
Respect for human rights

Occupational health and safety

Based on the findings from its interviews with non-Japanese technicalinterns, Mitsubishi Estate requests its suppliers—where it is assumed thatmany technical interns work—to instruct and make known to their associates
matters in the activities of technical interns that often go unnoticed, such as
issues related to pay and daily life. More specifically, Mitsubishi Estate has
included these requirements in quotation specifications distributed from
April 2020 onward to keep construction companies informed.

Ensuring of information security
Establishment of a risk management system

Carrying Out a Survey Using a Questionnaire
To confirm the level of compliance with the Supplier Code of Conduct, the Mitsubishi Estate Group carries out a survey using aquestionnaire. The Group currently surveys contractors and cleaning companies, which have a marked tendency toward causing
high sustainability risks* in the supply chain, and plans to expand coverage to other business partners going forward. The Groupwill survey not only tier-one suppliers (direct business partners) but also tier-two suppliers and below (contractors used by business
partners). Through in-depth surveys of entities in its supply chain, the Group will identify latent risks and request that suppliers
deemed to face such risks implement improvement initiatives based on the survey results. Moreover, in conjunction with the surveys, we will conduct on-site inspections in an effort to promote our sustainability and ESG-related initiatives.

Using Sustainably Sourced Timber for Concrete Form Panels Many of the concrete form panels*1 used when constructing office buildings, housing, and other structures are made from timberfrom Southeast Asian countries such as Malaysia and Indonesia. Nongovernmental organizations and other bodies have pointed
out that the procurement of logged timber may be done via illegal means, such as through the seizure of indigenous peoples’ land
and the destruction of the environment.
Taking into consideration human rights and environmental preservation, the Mitsubishi Estate Group uses timber equivalent tothat specified in the Sustainable Sourcing Code*2 (Certified Wood and Domestically Produced Wood), aiming to achieve a use rateof 100% by FY2031.
Mitsubishi Estate calls on construction companies to adhere to the code, including by incorporating information on the code in
the quotation guidelines it has distributed since April 2020. After obtaining independent certification from the Japan Gas
Appliances Inspection Association for the use of materials certified under the
Programme for the Endorsement of Forest Certification at The Parkhouse
Komazawa Residence, Mitsubishi Estate Residence obtained project certification based on Forest Stewardship Council standards at The Parkhouse
Takanawa Matsugaoka, a world first, and has decided to introduce suchmaterials in seven projects thus far. Mitsubishi Estate Residence will ensure
the traceability of timber formwork at all of its properties by 2030.

* Criteria for identifying suppliers with a marked tendency toward causing high sustainability risks
1
2
3

The supplier is likely to employ workers who tend to be in a vulnerable position, such as foreign workers or foreign technical interns
The supplier’s business has a major impact on the environment
The supplier has a multi-level contracting structure, making it difficult to understand and identify risks in certain cases

Carrying Out In-House Initiatives for Spreading Awareness of Human Rights 
Mitsubishi Estate implements a range of awareness-raising initiatives tostrengthen understanding of human rights. On an annual basis, Mitsubishi
Estate invites an outside speaker to give a lecture on human rights to key
management personnel (officers, general managers, and presidents of Group
companies) and conduct training on human rights for new employees andthose promoted to management positions. We also devote efforts to fosteringawareness of respect for human rights through initiatives that include soliciting suggestions for human rights slogans.

Training for new employees*1 Plywood for the concrete formwork employed in the construction of buildings. Plywood is used to assemble theformwork, into which concrete is poured to construct concrete buildings.
*2 The code defines standards and operational procedures for ensuring procurement that takes sustainability into
account with respect to international agreements and codes of conduct in fields relevant to sustainability.
Formwork concrete panel use

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Innovation

Innovation

Target and Initiative Policies 

Under Long-Term Management Plan 2030, the Mitsubishi Estate Group positions new businesses, such as those utilizing artificial
intelligence, robotics, and other new technologies, as new fields for non-asset businesses. Going forward, we will work to create
new business models and opportunities in these fields while coordinating with outside partners. Such coordination with outside
partners boasting new and advanced technologies will be imperative to the realization of a sustainable society. For this reason,
we plan to pursue initiatives that go beyond the boundaries of companies.

Improving the natural disaster resilience of real estate properties is crucial to ensuring the safety of visitors and workers as well
as for guaranteeing the safety of the surrounding areas and the business continuity of tenants. In addition to earthquakes, wemust prepare for potential increases in the frequency and intensity of urban flooding as a result of climate change. The resilienceof buildings will thus become even more important going forward. Accordingly, Mitsubishi Estate is implementing earthquake andwater damage countermeasures and developing systems for stable power supply on an individual-building basis. We are also
instituting non-infrastructure measures for providing environments that facilitate business continuity even during times of disaster and for establishing schemes for temporarily housing people who cannot return home because of a disaster. Furthermore, theCompany is enhancing systems for the comprehensive operation of multiple buildings and for intra-area coordination. In thismanner, we aim to contribute to safer and more secure cities.

Sustainability (ESG) Section

Along with its promotion of smart cities, Mitsubishi Estate has formulated the Mitsubishi Estate Digital Vision and is advancing
urban development that allows people to experience convenient living environments through digital transformation (DX). As partof these efforts, the Company will offer new services featuring the deployment of robots at facilities and in various urban environments. This will be achieved by promoting the creation of robot-friendly environments facilitating the introduction of robots thatcan be accessed both online and offline.
As well as alleviating labor shortages, making use of robots also helps increase efficiency in maintaining and managing facilities. As the COVID-19 pandemic has prompted an increase in the need for non-face-to-face and non-contact services, the range oftasks that robots are uniquely placed to perform has expanded. At the same time, robots’ communication and coordination withelevators and security doors are indispensable for their smooth operation. To this end, Mitsubishi Estate will take on the
responsibility of acting as a hub for cooperation between all stakeholders—including local governments, tenant companies, robot
manufacturers, and security and cleaning companies—to promote next-generation urban development.
Outline of Initiatives for Creating Robot-Friendly Environments

Offering New Experiential Value by Connecting
Facilities, Equipment, Stakeholders, and Robots

RobotsSecurity
robotsDronesCleaning
robotsTransport
robotsLocalgovernments

Tenantcompanies

Security
companies

Carrying Out Verification Tests of Disaster Dashboard Beta Mitsubishi Estate continuously takes steps in preparation for a potential disaster in the Otemachi, Marunouchi, and Yurakucho
areas. In the event of an inland earthquake in Tokyo on a weekday during the daytime, the Otemachi, Marunouchi, and Yurakucho
areas would face several issues, including large numbers of stranded commuters and the lack of a disaster hub hospital within
the areas. In light of these issues, Mitsubishi Estate carried out verification tests over a four-month period from November 2021
of Disaster Dashboard Beta, a platform for sharing information among disaster response agencies and providing information tostranded commuters.
The verification tests provided information on the availability of temporary accommodation facilities by automatically linking theplatform to Chiyoda Ward’s Twitter account. In addition, the tests encompassed such activities as verifying ways to summon emergency transit buses during disasters to transport the wounded and other individuals, having on-board information screens display bus
location information, and implementing the trial use of a device for operating Marunouchi Vision (digital signage) by remote control.
In conjunction with Chiyoda Ward, Mitsubishi Estate is refining Digital Dashboard Beta with the aim of implementing it during
FY2023 as a function of next-generation disaster preparedness centers (disaster response centers) and to serve as one of thefunctions of a smart city in response to an inland earthquake and other disasters in Tokyo. Going forward, the Company will further promote verification tests in relation to disaster countermeasure needs and solutions in partnership with various entities,
such as railway and building operators.

HUB

Stakeholders
MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Resilience

Target and Initiative Policies Promoting Next-Generation Services Utilizing Robots Facilities and Equipment
Visitors

Cleaning
companies

Elevators

CamerasOffices

Etc.

Sensors

Retailfacilities

Etc.
Disaster Dashboard Beta (digital signage version)

Launching BRICKS FUND TOKYO by Mitsubishi Estate 
In 2022, the Company launched BRICKS FUND TOKYO by Mitsubishi Estate, a fund for investing in start-ups that take on the challenge ofrealizing social contributions over the medium to long term, such as resolving social issues and transforming the industrial structure.
With a mission to lay the foundations for a new era by implementing the vision of entrepreneurs in society, the fund has established three investment themes and 12 focus areas. The fund aims to help improve corporate value over the medium to long term
and co-create growth industries by supporting investee companies with the implementation of their vision in society, such as
through the provision of sales support drawing on the Mitsubishi Estate Group’s management infrastructure, the implementationof field trials in Otemachi, Marunouchi, Yurakucho, and other areas, and the promotion of business co-creation and collaboration.
Mitsubishi Estate has proactively engaged inco-creation with start-up companies over theyears, such as through the implementation of the
Mitsubishi Estate Accelerator Program. Goingforward, the establishment of this fund will
enable us to further accelerate innovation andtransform business models unbound by theframeworks of existing businesses while contributing to the development of an
ecosystem for start-up
companies in Japan.
Logo for BRICKS FUND TOKYOby MItsubishi Estate

68

Resilience

Emergency transit bus for use during disasters(Marunouchi Shuttle)

Helping the wounded onto a bus (rendering)

Implementing Online Disaster Response Drills in the Tsudanuma Area 
In March 2022, Mitsubishi Estate Residence Co., Ltd., and Mitsubishi Estate Community Co., Ltd., implemented online disaster
response drills in the Tsudanuma area in Chiba Prefecture. While the impact of the COVID-19 pandemic continues to make it difficult to implement disaster response drills, both companies carried out interactive disaster drills online to continuously prepare
for disasters that may happen at any time.
Under the theme of “surviving the 72 hours following a disaster,” we implemented an interactive workshop incorporating experiential elements into drills, with participants looking at how to navigate the “72-hour barrier”—said to be the maximum time
available for saving lives—by learning about countermeasures unique to condominiums, unforeseen accidents, and other matters. The drills also featured live streams of the activities of the Disaster
Management Headquarters to provide an introduction to the workings of theoperational side, which are not normally seen.
Launched in 2015 and held for the seventh time in 2022, the Tsudanuma
area response drills targeted approximately 2,700 residents from five condominiums in the area. In 2022, we will also guide the 225 voluntary disaster
response organizations in Narashino City through the drills in an effort tocreate a system for local residents to help each other in the event of a disaster.
Coordinating with others in the area via radio

Major investment themes and focus areas

69

Realizing Sustainable Actions in
the Otemachi, Marunouchi,
and Yurakucho Areas

Examples of Actions in FY2022 
In FY2022, the project carried out 54 actions through partnerships with 68 organizations—involving the participation of a total of
10,500 people—during its core seven-month period from May 2021 to November 2021.

ACT“SUSTABLE”—Connecting Food Professionals and Consumers to Bring Change
to Dinner Tables in the Future

OMY SDGs ACT5 
Based in the area in front of Tokyo Station and the Otemachi, Marunouchi, and Yurakucho areas (Daimaruyu area), OMY SDGs
ACT5 was launched in 2020 as a project to promote activities for achieving the Sustainable Development Goals (SDGs) throughcoordination among companies and organizations both inside and outside the Daimaruyu area. With an executive committee
comprising Mitsubishi Estate, a comprehensive developer, The Norinchukin Bank, a financial institution providing support forregional primary producers, and Nikkei Inc., Japan’s leading economic media outlet, the project aims to give rise to specificsustainable actions by consolidating the various resources of each of its participant companies.

OMY SDGs ACT5 held “SUSTABLE,” a portmanteau of the words “sustainable” and “table,” on a
total of six occasions between September and November 2021 as a sustainable food initiative.
SUSTABLE is a seminar, with refreshments included, held with the aim of allowing consumersof food to personally experience dishes made with due consideration for sustainability (sustainable food) while providing them with the opportunity to reflect on social issues—the backdrop of
the seminar—and encouraging them to change their behavior into the future. With the growers
and makers who produce food, the chefs who prepare dishes with such food, and the consumers
who eat it assembled in one venue, the seminar acts as a forum for participants to give thought
to food and social issues while enjoying the delicious taste of sustainable food together andsharing their expectations of the next generation of producers.

ACT

Distinctive Features
Sustainability (ESG) Section

1: Sustainable Food

Participants at the fifth SUSTABLE, which was on sustainable agriculture

2: The Environment“Plogging” at Kujukuri Beach—Taking Exercise While Reflecting on the Issue of
Ocean Plastic Waste

1

2

3

Forming Communities

Connecting Resources

Utilizing an App

Cooperating by transcending their individual corporate boundaries, companies
based in the Daimaruyu area have formed
communities oriented toward solving social
issues, with the Daimaruyu area as theirstarting point.

By connecting their respective resources
organically, participating companies havemade progress in exploring and establishing projects on a wide range of themes thatthey would not be able to tackle
individually.

The OMY SDGs ACT5 project facilitateschanges in the behavior of visitors andworkers by setting an app as the foundation for all of its activities. The project aims
to accelerate the formation of communities
and the connection of resources throughthe analysis of data obtained from the app.

“Plogging” is a portmanteau of the Swedish word for “picking up” (plocka upp) and the English word
“jogging.” Plogging, which combines jogging with picking up litter, is a popular SDGs-related sporting activity, primarily in Europe. OMY SDGs ACT5 held an experience-based event for participants totake an interest in the issue of ocean plastic waste while enjoying themselves and reflecting on theactions each individual can take to safeguard the beautiful oceans and ensure the safety of food.
The event took place at Kujukuri Beach, which is located in the town of Ichinomiya, Chiba
Prefecture. The beach is one of Japan’s largest sandy beaches and is famous for surfing. Garbage
Plogging at Kujukuri Beach in Chiba Prefecturethat has not been disposed of properly on land constitutes the primary source of ocean waste.
The project held another plogging event on a separate date in Marunouchi. At the event, participants picked up litter in the Daimaruyu andsurrounding areas while enjoying the cityscape.

ACT

3: Well-BeingOMY SDGs ACT5 Walking Steps Challenge—Walking and Taking SDGs Actions to
Promote Well-Being and Win a Prize
MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Five Focus Themes and Respective Actions 

OMY SDGs ACT5 held a competition for users of the ACT5 Member Point App in which individuals
converted the number of steps they walk on a daily basis, their participation in events, and theirefforts in relation to SDGs activities into a score format. A total of 373 participants took part in avariety of SDGs actions, with the five winners achieving maximum scores for all action points.

Focus Themes
Sustainable Food

Environment

ACT

Establishment ofFive Themes

Diversity and Inclusion

Enjoy & Join (E&J) Lab—a Research Laboratory Where Anyone Can Implement
Verification Tests to Solve Issues While Having Fun

Well-Being

Communication

The project’s executive committee has chosen key focus themes from among the wide range of themes included in the SDGs.

Developing the ACT5 Member Point App 
The project has developed the ACT5
Member Point App with the goals of
encouraging changes in the behavior ofindividuals and analyzing the attributes
and tendencies of participants. With thecooperation of several stores in the
Daimaruyu area, the app has created
opportunities for participation inactions related to the SDGs throughout
the area in several ways, such as
granting points to customers who use
reusable shopping bags or their own
drink receptacles.

70

DL the App now!

ACT5 Member Point App
Participate to accrue points!
Use accrued points productively!

The actions of
all participants
create a brighter
futureACT Member Point App

Take action

Get points

Participate inSDGs
activities atcooperating
stores, etc.

App users
receive points
in accordancewith theirdegree ofparticipationin activities

Use accrued points productively

Get special
benefits

Exchange for
SDGs benefits,
etc.

E&J Lab, an ally* community for diversity and inclusion (D&I), launched in November 2021 withthe objective of realizing urban development free from mental barriers—in other words, working
environments amenable to everyone—in the Daimaruyu area. E&J Lab is a community where adiverse range of people connect with each other to give thought to diversity in the future, witheveryone putting their heads together to think about D&I in positive, fun, and interesting ways.
E&J Lab aims to create a community where members have fun while approaching D&I as an
issue that is relevant to them, rather than from a sense of obligation.
Those who assemble at E&J Lab are called researchers, who invite a guest (a lecturer) to every meeting. At such meetings, in addition toacquiring knowledge regarding D&I and learning about examples of related initiatives, the researchers brainstorm interesting ideas together
and conduct verification tests aimed at solving issues. Meetings are attended by not only those in charge of personnel matters but also a wide
range of people from throughout Japan, including individuals from various business spheres and industries, local government representatives,and students. Discussions among participants are always so lively that they run out of time, making for a vibrant community.
* Although the term “ally” is generally used to refer to those who understand and stand with people from the LGBTQ community, E&J Lab uses it to refer to those from the LGBTQ community as
well as diverse people who understand and support D&I.

ACT

Contribute to the SDGs through the ACT Member Point App
Participate to accrue points

4: Diversity and Inclusionoror
Exchange

DonateExchange forpoints thatcan be used
for shoppingin Marunouchi

Donate toorganizations
promoting theSDGs

5: Communication

Daimaruyu Film Festival 2021, Showing Feature-Length Films with Themes Relevant to the SDGs
OMY SDGs ACT5 held Daimaruyu Film Festival 2021 as a project to provide opportunities for people
to understand and take action on the present state of global social issues through film—a mediumthat can capture anyone’s interest—by converting a range of urban facilities into mini theaters. In
collaboration with the artist Akira Fujimoto, the project held an art exhibition entitled “A Plastic onshore,” movie screenings, and a discussion event at Sunshine City in Ikebukuro, Tokyo.
The festival showed 17 feature-length and short films from around the world to provide an
opportunity for participants to confront social issues. Through discussions attended by renowned
guests, the organizers aimed to realize a film festival that encouraged people to think and act inrelation to social issues, rather than just watch films.

71Corporate Governance

SASB

Message from the Chairperson of the Board

Information Disclosure Based on SASB Standards Notes
 e are classified in the Real Estate industry under the infrastructure sector according to SICS®, so we disclose the followingW
information based on the standards for this industry.
The property subsectors are aligned with the 2018 GRESB Real Estate Assessment Reference Guide as stipulated in the SASB standards.
 he scope of the following information covers properties for which Mitsubishi Estate owns an equity stake of 20% or more,T
which is different from the coverage of the scope used for reporting under Science Based Targets and RE100.
 hird-party verification is acquired for environmental performance figures related to properties included in the scope used forTreporting under Science Based Targets and RE100, but verification has not been acquired for the following figures.

Sustainability Disclosure Topics and Accounting Metrics (FY2021)
Energy Management

Energy consumption data coverage as a percentage of total
floor area, by property subsector
Total energy consumed by portfolio area with data coverage
Percentage grid electricity
Percentage renewable
Like-for-like percentage change in energy consumption forthe portfolio area with data coverage

Percentage (%)
by floor area
Mwh
Mwh

Percentage of eligible portfolio that has an energy rating

Percentage (%)
by floor area
Percentage (%)
by floor area
Unit of Measure

Percentage of qualified portfolio with real estate environmental certification

Description of how building energy management considerations are integrated into property investment analysis andoperational strategy

CodeRetail,Shopping
Centers

OfficeLodging,
Leisure, andRecreation

Healthcare

Parking

Other

IF-RE-130a.1

100

100

100

100

100

100

%

IF-RE-130a.2
IF-RE-130a.2
IF-RE-130a.2

977,608
0
3.11

143,650
0
0

2,409
0
0

2,298
0
0

1,692
0
0

449
0
0

%

IF-RE-130a.3(8.42)(9.17)—

0.07(20.73)(29.15)NA

IF-RE-130a.4

1.85

0

0

0

0

0

IF-RE-130a.4

18.52

5.26

0

0

0

0

Code

IF-RE-130a.5

Contents
In June 2022, the Science Based Targets initiative (SBTi) validated Mitsubishi Estate’s Groupwide
CO2 emissions reduction targets (reduction of the total of Scope 1 and Scope 2 emissions by atleast 70% and Scope 3 emissions by at least 50% by FY2031, compared with FY2020, andachievement of net-zero emissions for Scope 1, Scope 2, and Scope 3 by 2050). In addition, theCompany joined RE100 in January 2020, adopting the goal of sourcing 100% of the electricity it
uses from renewable energy sources (renewable electricity) by 2025. To achieve these goals, weplan to actively promote the introduction of renewable electricity at the facilities we own andoperate and the on-site generation of such renewable electricity. We also intend to actively
acquire real estate environmental certifications. Scenario analyses* based on the Task Force on
Climate-related Financial Disclosures framework have cited the risk of rises in vacancy rates or
declines in rent levels for buildings that have low environmental performance or that have not
adopted renewable electricity. Accordingly, we are committed to maintaining and improving ourmarket competitiveness by swiftly advancing the aforementioned initiatives*https://mec.disclosure.site/e/sustainability/activities/environment/tcfd/

Corporate Governance

Sustainability (ESG) Section

Unit of Measure

Chairperson of the Board
Mitsubishi Estate Co., Ltd.

Water withdrawal data coverage as a percentage of total
floor area
Water withdrawal data coverage as a percentage of floor area
in regions with High or Extremely High Baseline Water Stress
Total water withdrawn by portfolio area with data coverage
Percentage in regions with High or Extremely HighBaseline Water StressLike-for-like percentage change in water withdrawn for the
portfolio area with data coverage

Description of water management risks and discussion ofstrategies and practices to mitigate those risks

Retail,Shopping
Centers

Lodging,
Leisure, andRecreation

Healthcare

100

100

100

100

100

100

0

0

0

0

0

0

IF-RE-140a.2

2,589

610

11

10

6

2

IF-RE-140a.2

0

0

0

0

0

0

%

IF-RE-140a.3(11.26)(0.19)—(36.77)(27.07)(36.38)

Unit of Measure

Code

NA

IF-RE-140a.4

Unit of Measure

Code

Unit of Measure

Code

Percentage (%)
by floor area
Percentage (%)
by floor area
Thousand m3

IF-RE-140a.1
IF-RE-140a.1%

OfficeParking

Other

Contents
We purify wastewater in a recycling system, after which the treated recycled water* is used toflush toilets inside buildings. The use of recycled water is being promoted to help mitigate
future water risks. Accordingly, we have set a target for raising the recycled water use rate to100% by 2030, and actions for reaching this target are being advanced steadily.
* Water reclaimed from used tap water and treated for recycling. It is used for flushing toilets,
watering greenery, air-conditioning systems, and other such facility water needs, as well as
for cleaning, before being discharged into the sewage system.

Management of Tenant Sustainability Impacts

Percentage of new leases that contain a cost recovery
clause for resource efficiency-related capital improvements
Associated leased floor area, by property subsector
Percentage of tenants that are separately metered orsubmetered for grid electricity consumption
Percentage of tenants that are separately metered orsubmetered for water withdrawals

Discussion of approach to measuring, incentivizing, andimproving sustainability impacts of tenants

Percentage (%)
by floor aream2
Percentage (%)
by floor area
Percentage (%)
by floor area
Unit of Measure

Retail,Shopping
Centers

OfficeLodging,
Leisure, andRecreation

Healthcare

IF-RE-410a.1

43.16*

IF-RE-410a.1

1,373,812

IF-RE-410a.2

0

0

0

Parking

0

Othe

0

0

IF-RE-410a.2

Not disclosed

CodeContents
To drive energy-saving actions with our tenants, we created a guidebook that introduces examples
of energy-saving methods to them, and we introduced green leases into the template of our contracts.
Also, we hold yearly Global Warming Prevention Council meetings collaborating with the tenants ofeach of our ISO 14001-certified buildings in the Tokyo metropolitan area to explain GHG emissions
reductions and energy-saving actions and to provide updates on the progress in these efforts, and so on.

NA

IF-RE-410a.3

Unit ofMeasureCode* Ratio to the nationwide leasable area

Climate Change Adaptation

Area of properties located in 100-year flood zones, byproperty subsector
Description of climate change risk exposure analysis,
degree of systematic portfolio exposure, and strategies for
mitigating risks

OfficeRetail,Shopping
Centers

Lodging,
Leisure, andRecreation

Healthcare

Parking

Othe

m2

IF-RE-450a.1

Not disclosed

Unit of Measure

Code

NA

IF-RE-450a.2

Contents
Please refer to “(2) Strategy” in our “Information Disclosure Based on TCFD Recommendations”
on our website.
(URL: https://mec.disclosure.site/e/sustainability/activities/environment/tcfd/)

Unit of Measure

Code

OfficeNumberm2
Percentage (%)
by floor area%

IF-RE-000.A
IF-RE-000.B

54
4,981,804

Activity Metrics

Number of assets, by property subsector
Leasable floor area, by property subsector*
Percentage of indirectly managed assets, by property
subsector
Average occupancy rate, by property subsector

Retail,Shopping
Centers

Lodging,
Leisure, andRecreation

Healthcare

18
699,5254
471,559

3
11,9701
21,430Parking

Other
2
4,973

IF-RE-000.C

0.0

33.3

0.0

0.0

100.0

50.0

IF-RE-000.D

96.4

97.0

99.1

76.3

—

100.0

Mitsubishi Estate has positioned the development and promotion of its corporate governance system as one of its most importantmanagement issues, with the goal of realizing its basic mission of contributing to the creation of a truly meaningful society by building
attractive, environmentally sound communities where people can live, work, and relax with contentment.
Mitsubishi Estate has adopted the Company with Nominating Committee, etc., structure. The role of the Board of Directors undersuch a structure is to decide the Company’s basic management policies and supervise overall management. To that end, the Company
is working to ensure the transparency and objectivity of management so that it can fulfill its accountability to its shareholders andother stakeholders. To date, Mitsubishi Estate has implemented a broad range of initiatives on an ongoing basis, such as introducing
performance-based officer remuneration, increasing the ratios of outside directors on the Board of Directors and other important
committees, ensuring that independent outside directors serve as the chairpersons of all committees, deciding not to renew its countermeasure program regarding possible hostile takeover attempts, and introducing third-party evaluations of the Board of Directors.
In FY2022, the Board of Directors disclosed a skills map identifying the skills (knowledge, experience, and abilities) that its members
must possess for ensuring effective management oversight and monitoring functions in order to realize the Company’s Long-Term
Management Plan 2030. The Board also revised its officer remuneration system so as to enhance the commitment of officers to achieve
the goals of the plan, by strengthening the linkage between the officer remuneration system and the plan and further aligning shareholders’ and officers’ interests through the raising of the percentage of remuneration linked to the Company’s shares and share price.
Continuing on from the share buybacks executed in FY2020 totaling approximately ¥100.0 billion, the Company implemented additional
share buybacks of approximately ¥30.0 billion in FY2022. Going forward, Mitsubishi Estate will strive to enhance capital efficiency andshareholder returns in an effort to achieve the capital policies adopted under Long-Term Management Plan 2030.
Furthermore, the Company increased the number of female directors from one to two in June 2022, thereby promoting greater
diversity while maintaining a diverse range of backgrounds among members of the Board of Directors as a whole.
Long-Term Management Plan 2030, which began in April 2020, was formulated over a year of thorough discussions by the Board of
Directors. In addition to a strategy that targets increasing shareholder value, the plan focuses on a strategy for social value improvement that involves making efforts toward realizing a sustainable society. By generating synergies between these two strategies, theplan aims to realize the Company’s basic mission and achieve sustainable growth.
Amid dramatic changes in the business environment, including the ongoing COVID-19 pandemic and an unstable international situation, it ismore important than ever for the Board of Directors to secure members who offer a diverse range of knowledge and experience and engage inactive discussions. I am the non-executive chairperson of the Board, experienced in business execution. My role in such a position is to encourage more active exchanges of opinions, including greater involvement of outside directors, and lead lively discussions at Board meetings while
also understanding the perspectives of the officers in charge of business execution. By fulfilling this role, I will help the Board establish
a management oversight structure from a long-term perspective with a view to achieving the goals of Long-Term Management Plan 2030.
Guided by the Company’s basic mission, the Board of Directors will remain committed to meeting the expectations of shareholders andinvestors by doing all it can to guide the Company in a way that takes into account future changes in society and the business environment.
August 2022

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Water Management* Indicates the total floor area

72

73

Corporate Governance System

Basic Policy Board of Directors 

Mitsubishi Estate aims to realize the enhancement of corporate value through a harmonious balance between corporate
growth and the interests of its various stakeholders by following its brand slogan, “A Love for People. A Love for the City,”
based on its basic mission of “contributing to society through urban development.” The Company shall position thedevelopment and promotion of its corporate governance system as one of the most important management issues inrealizing this goal.
In developing and promoting our corporate governance system, to bring about greater clarity with regard to roles andthe strengthening of functions in both the supervision of management and the execution of business while also fulfilling
accountability to our shareholders and other stakeholders, the basic policy shall work to ensure the transparency andobjectivity of management.

The Board of Directors decides the basic policy of the Company’s management, and it also carries out supervision of theexecution of duties by directors and corporate executive officers. As of June 29, 2022, the Board of Directors consists of
15 directors, of whom seven are outside directors. The role of chairperson of the Board of Directors is held by the chairperson of the Board of the Company, who does not concurrently serve as a corporate executive officer.
The membership of the Board of Directors is appropriately balanced with members from a diverse range of backgrounds.
Proportion of Outside Directors
Outsidedirectors: 7

7/15

System Structure 

Corporate Governance

As a Company with Nominating Committee, etc., Mitsubishi Estate has established the Nominating Committee and theRemuneration Committee, which are composed entirely of outside directors, and the Audit Committee, which is membered solely by non-executive directors. Positioned under the Board of Directors, these committees help promote highstandards and ensure transparency in the decision-making process.

Inside directors(concurrently serving
as executive officers)

Inside directors(not concurrently serving
as executive officers)

46.6%

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

General Meeting of Shareholders

Board of Directors
Cooperate

Accounting Auditor

Composition of the
Audit Committee

Audit Committee
OfficeNominating Committee

Remuneration Committee

Committee Activities
Composition of theNominating Committee

Composition of theRemuneration Committee(FY2022)

Membership*(As of June 29, 2022)

Cooperate Audit

Internal Audit Office

President & Chief Executive Officer

Cooperate

Audit

Sustainability Committee

Risk Management &Compliance Subcommittee

Sustainability Subcommittee

Internal audit

Corporate Strategy Committee

Corporate Executive Officers
Functional Groups, Business Groups,
and Corporate Staff Departments

2/15

66.6%

13.3%
Male
directors:
13

Nominating Committee

Audit Committee

Remuneration Committee	Decision-making on the detailsof the proposals to the General
Meeting of Shareholders related
to the appointment and dismissalof directors

	Auditing and compilation ofaudit reports pertaining to theperformance of duties by corporate executive officers anddirectors
	Decision-making on the detailsof the proposals related to theappointment, dismissal, andnon-reappointment of theaccounting auditor	Formulation of remuneration
policies for corporate executive
officers and directors
	Decision-making on remuneration amounts for individual
corporate executive officers
and directors

Five meetings in FY2022
	Determination of the details of
director nomination proposals
based on standards for nominating director candidates
formulated by the Nominating
Committee	Reports and deliberations withregard to the nomination of corporate executive officers prior
to the resolution by the Board of
Directors

15 meetings in FY2022
	Performance of audits throughcoordination with the accounting auditor and internal audit
divisions based on audit standards and plans	Attendance at important meetings, review of important
documents, and visits to internal divisions, branches, andsubsidiaries by full-time members of the Audit Committee

Nine meetings in FY2022
	Decision-making on individual
remuneration amounts basedon the remuneration system	Adoption of a resolution to revise
the officer remuneration system(improve the linkage between
the officer remuneration systemand the attainment of the targetsof Long-Term Management Plan
2030 and further align officers’interests with those of shareholders following the increase in
the percentage of variable
remuneration)

4 (4 outside)

5 (3 outside, 2 inside)

4 (4 outside)

Audit Committee

Remuneration Committee

Name

Inside/outside

Nominating Committee

Noboru Nishigai

Inside—Hiroshi Katayama

Inside—Tsuyoshi Okamoto Outside
Risk Management &Compliance Committee

10/15

Nonexecutive
directors: 10

Committee Duties

Delegate authority to executebusiness andsupervise

Femaledirectors: 2

Insidedirectors:
8

Composition of the Board of Directors

Audit Committee

Executive officers
concurrently
serving as
directors:
5

Proportion of Female Directors

Nominating Committee, Audit Committee, and Remuneration Committee 

Chairperson andcommittee chair

Outside directors

Proportion of Non-Executive Directors

Executive Committee
Group Strategy
Committee
Strategic Investment
Committee

Tetsuo Narukawa

OutsideMasaakiShirakawa

OutsideShin Nagase

OutsideSetsuko Egami

OutsideIwao Taka

OutsideMelanie Brock

Outside

—
—
—

—

—
—

—

—
—

—

—
—

* All three committees are composed solely of non-executive directors.

Chairperson

74

Committee
member75

Corporate Governance System

Evolution of Corporate Governance System 
Mitsubishi Estate has positioned the development and promotion of its corporate governance system as one of its mostimportant management issues.
Since transitioning to a Company with Nominating Committee, etc., in 2016, the Company’s basic policy has been to“develop and promote its corporate governance system to bring about greater clarity with regard to roles and the strengthening of functions in both management supervision and business execution, while also working to ensure the transparency
and objectivity of management in order to fulfill its obligation to be accountable to its shareholders and other stakeholders.”
To this end, the Company has steadily promoted the improvement of its corporate governance system, giving due consideration to changes in social conditions and the business environment as well as to the demands of its stakeholders.
In FY2022, in light of the revision of the Corporate Governance Code, the Board of Directors disclosed a skills matrix
identifying the skills (knowledge, experience, and abilities) that its directors must possess for ensuring effective

Corporate Governance2015

 hange in outside directors
C(improvement of independence
and gender diversity)

Organizational structure,outside directors

2017

2016

 ransition to Company withT
Nominating Committee, etc.,
structureIncrease in ratio of outside directors (7 of 15)

Composed of a majority of outside directors

management oversight and monitoring functions with a view to achieving the targets set out in Long-Term Management
Plan 2030. The Board also revised its officer remuneration system for strengthening the linkage between said system andthe long-term management plan, enhancing the commitment of officers to achieving the goals of the plan, and furtheraligning shareholders’ and officers’ interests by raising the percentage of remuneration linked to the Company’s sharesand share price. Furthermore, as part of the capital policies set out in Long-Term Management Plan 2030, the Board executed share buybacks of approximately ¥30.0 billion in order to improve capital efficiency and enhance shareholder value.
Since June 2022, in an attempt to improve gender diversity, the Board of Directors has increased the number offemale directors among its membership, thereby achieving a composition with a more diverse range of backgrounds
and an appropriate balance.
The following is an overview of the changes made to our corporate governance system to date.

2018

2019

2020

 aking of all committee members
M
into non-executive directors

 hange of chairperson of Audit
C
Committee to outside director

 embership of Remuneration
M
Committee comprising exclusively
outside directors

 embership of Nominating
M
Committee composed completelyof outside directors

Composed solely of
non-executive directors

2021

Disclosure of a skills matrix

Composed solely of outside directors

Nominating Committee

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Composed solely of non-executive directors

Audit Committee

Composed of a majority of outside directors

Composed solely of outside
directors

Remuneration CommitteeIntroduction of Restricted
Stock Compensation System

Officer remuneration

Other aspects of corporate
governanceOutside directors

76

Change of chairperson to outside director

Inside directors (not concurrently
serving as executive officers) larification of the roles of thoseC
who supervise management andthose who execute businessIntroduction of a Group executive
officer system

Inside directors (concurrently
serving as executive officers)Detailed disclosure of the officer remuneration system
Adoption of a resolution to revise said remuneration system (improve the linkage between theofficer remuneration system and the attainmentof the targets of Long-Term Management Plan
2030 and further align officers’ interests withthose of shareholders following the increase in
the percentage of variable remuneration)Introduction of performancebased incentive system ommencement of evaluations ofCthe effectiveness of the Board of
Directors
Establishment of the “Mitsubishi
Estate Co., Ltd., Corporate
Governance Guidelines”

Introduction of flexible capital policies based on market conditions(execution of share buybacks ofapproximately ¥100.0 billion)
 ecision not to renew the counterD
measure program regarding possible hostile takeover attempts

Implementation of third-party
evaluations in determining theeffectiveness of the Board of
Directors

 xecution of share buybacks ofE¥30.0 billion as part of flexible
capital policies based on market
conditions

Chairperson

77Corporate GovernanceCorporate Governance System

Appointment Standards for Director Candidates 

Independence Standards for Independent Outside Directors 

1. Purpose
These guidelines shall establish guidelines for the nomination of directors by the Nominating Committee.
2. Director Candidates
Director candidates shall fulfill a duty of care as a prudent manager toward the Company, in addition to understanding theGroup’s basic mission of contributing to the creation of a truly meaningful society by building attractive, environmentallysound communities where people can live, work, and relax with contentment. Furthermore, director candidates shall beendowed with the necessary skills in accordance with management strategies while having the qualities and capabilities
to contribute to enhancing medium- to long-term sustainable corporate value in consideration of the characteristics of theCompany’s business, such as supporting urban development in the Marunouchi area.
(1) Inside Director Candidates
For directors from within the Company, in addition to displaying the abovementioned qualities and capabilities—specifically, demonstrating outstanding integrity, leadership, and foresight—candidates to be nominated shall be corporate
officers in charge of one of the Company’s business groups or corporate officers in charge of corporate staff who haveextensive knowledge and experience related to the Group’s business, who can perform oversight roles with aCompanywide perspective, and who are highly trained, or, alternatively, personnel with such experience or personnel
with translatable experience.
(2) Outside Director Candidates
For outside directors, in addition to the abovementioned qualities and capabilities, candidates shall be nominated fortheir operational and management experience, for the application of their experience and knowledge in specialized
fields such as global business and risk management, for having the personality and knowledge enabling objective andfair judgments based on the perspective that they will contribute to the common interests of shareholders without bias
toward the interest of any particular party of interest, and for satisfying the Independence Standards for Independent
Outside Directors.
3. The Revision or Abolishment of These Standards Shall Require a Resolution of the Nominating Committee.

Candidates for the outside director position shall fulfill a duty of care as a prudent manager toward the Company; understand the Group’s basic mission of contributing to the creation of a truly meaningful society by building attractive,
environmentally sound communities where people can live, work, and relax with contentment; apply their qualities andcapabilities to contribute to enhancing medium- to long-term sustainable corporate value, as well as their experienceand knowledge in specialized fields such as global business, finance, and risk management, in view of the Group’sbusiness characteristics, such as supporting urban development in the Marunouchi area; and have personality and knowledge enabling objective and fair judgments, based on the perspective that they shall contribute to the common interestsof shareholders without bias toward the interest of any particular party of interest. However, as a general principle,
candidates are not elected if the Tokyo Stock Exchange’s standards for independence and the following independence
standards for outside directors apply to them.
(1) A shareholder or executive member of an entity holding voting rights exceeding 10% of the total voting rights of the Company(2) A transaction party or executive member of an entity whose transactional amounts in the most recent fiscal year
have exceeded 2% of consolidated operating revenue of the Company(3) A representative employee, employee, or member of staff of the Company’s accounting auditor(4) An attorney, certified public accountant, tax accountant, consultant, or other party who has received compensationfrom the Company exceeding ¥10 million in the most recent fiscal year

Attendance Rates of Outside Directors in FY2022 and Contributions Made Attendance at Meetings of the Board of
Directors and Committees

Overview of Contributions Made and Work Performed to Fulfill Expectations of Role

Tsuyoshi Okamoto

Board of Directors
Nominating Committee
Remuneration Committee

10/10
5/5
9/9

Tsuyoshi Okamoto poses pertinent questions and offers valuable advice
from an objective viewpoint independent of management executives incharge of business affairs, by leveraging his management experience at
a comprehensive energy company. In this way, he fulfills supervisory andmonitoring functions of the Company’s management.

Shin Ebihara

Board of Directors
Nominating Committee
Remuneration Committee

10/10
5/5
9/9

Shin Ebihara poses pertinent questions and offers valuable advice froman objective viewpoint independent of management executives in chargeof business affairs, by leveraging his wealth of international experienceand knowledge gained through his extensive years as a diplomat. In thisway, he fulfills supervisory and monitoring functions of the Company’s
management.

10/10
15/15

Tetsuo Narukawa poses pertinent questions and offers valuable advice
from an objective viewpoint independent of management executives incharge of business affairs, by leveraging his international experience aswell as management experience at financial institutions and real estatecompanies. In this way, he fulfills supervisory and monitoring functions of
the Company’s management.

NameInside directors

In January 2020, the Company formulated its Long-Term Management Plan 2030 based on the Group’s medium- to longterm management strategies and business strategies. To realize the plan, the Company has identified the skills (knowledge, experience, capabilities) needed for the Company’s Board of Directors to exercise its management oversightfunction and monitoring function effectively.
The skills of the Company’s directors are provided below.

Outside directors

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Board of Directors’ Skills Matrix 

NameGenderHirotaka Sugiyama

Male

Junichi Yoshida

Male

Junichi Tanisawa

Male

Atsushi Nakajima

MaleNaoki Umeda

Male

Hitoshi Kubo

Male

Noboru Nishigai

Male

Hiroshi Katayama

MaleTsuyoshi Okamoto

Male

Tetsuo Narukawa

Male

Masaaki Shirakawa

MaleShin Nagase

Male

Setsuko Egami

FemaleIwao Taka

Male

Melanie Brock

FemaleLong-term vision
on urbandevelopment(industry insight)

Corporate­management
experience

Organizational
strategy /Business strategy

International
knowledge

Treasury,­accounting,and financeCompliance /Risk management

ESG /Sustainability

Note: To clarify the composition of skills of members of the Board of Directors, of the skills possessed by each director, the Company has selected the most relevant skills here, andall skills (­knowledge, experience, and capabilities) are not listed.

78

Tetsuo Narukawa

Board of Directors
Audit Committee

Masaaki Shirakawa

Board of Directors
Nominating Committee
Remuneration Committee

10/10
5/5
9/9

Masaaki Shirakawa poses pertinent questions and offers valuable advice
from an objective viewpoint independent of management executives incharge of business affairs, by leveraging his knowledge in finance andeconomics, among other fields, gained through his experience working at
a central bank. In this way, he fulfills supervisory and monitoring functions of the Company’s management.

Shin Nagase

Board of Directors
Audit Committee

10/10
15/15

Shin Nagase poses pertinent questions and offers valuable advice froman objective viewpoint independent of management executives in chargeof business affairs, by leveraging his management experience at an airline company. In this way, he fulfills supervisory and monitoring functionsof the Company’s management.

Setsuko Egami

Board of Directors
Nominating Committee
Remuneration Committee

10/10
5/5
9/9

Setsuko Egami poses pertinent questions and offers valuable advice
from an objective viewpoint independent of management executives incharge of business affairs, by leveraging her abundant knowledge of corporate strategy, marketing strategy, and human resource development. In
this way, she fulfills supervisory and monitoring functions of theCompany’s management.

Iwao Taka

Board of Directors
Audit Committee

10/10
15/15

Iwao Taka poses pertinent questions and offers valuable advice from an
objective viewpoint independent of management executives in charge ofbusiness affairs, by leveraging his extensive knowledge regarding business ethics and compliance, among other fields. In this way, he fulfills
supervisory and monitoring functions of the Company’s management.

79Evaluation of the Effectiveness of the Board of Directors

Corporate GovernancePurpose of Evaluating the Effectiveness of the Board of Directors
With the aim of confirming that the Board of Directors is functioning effectively through its oversight function to improve
corporate value on a medium- to long-term basis and to enhance corporate governance, the Board of Directors analyses
and evaluates its effectiveness as a whole based on evaluations conducted annually by each director. In addition, theBoard discloses a summary of the evaluation results and subsequently formulates and implements policies based
thereon to enhance its effectiveness where necessary.
Initiatives Undertaken Thus Far to Realize the Desired Role of the Board of Directors
Mitsubishi Estate transitioned to the Company with Nominating Committee, etc., structure in June 2016. The Company
defines the primary duties of the Board of Directors as deciding on basic management policies and important matters ofbusiness execution as well as supervising the execution of duties by directors and corporate executive officers from theperspective of bringing about greater clarity with regard to roles and the strengthening of functions in both management
supervision and business execution. In accordance with the results of the analysis of the annual evaluation of the Boardof Directors’ effectiveness, the Board has thus far implemented initiatives to enable it to carry out its role appropriately.
These include enhancing discussions regarding management plans by carefully examining agenda items as well as
increasing opportunities for and improving the content of reporting from corporate officers, in addition to ensuring that
information is provided more extensively to outside directors.
In FY2021, based on Long-Term Management Plan 2030—unveiled in January 2020—the Company began including
items regarding initiatives to be improved going forward in addition to existing items from the perspective of appropriately monitoring management to increase shareholder value and social value over the long term. Furthermore, theCompany received advice from a third-party evaluation organization at each phase of the evaluation process, including in
the creation of questionnaires, the analysis of responses, and the sharing of issues. An overview of the evaluation­process and results of the third-party evaluation carried out on the effectiveness of the Board of Directors in FY2021 are
as follows.

2. Results of Evaluation and Future Initiatives (Results of Evaluation)
The Board of Directors deemed that it was functioning effectively.
(Analysis of Results) 	In the questionnaire on the evaluation of Board effectiveness completed by each director, asignificant number of items received a high ratio of “appropriate” as the response.
Furthermore, a constructive exchange of opinions took place for each evaluation item, including issues pointed out by directors and their suggestions for the future. In particular, withrespect to appropriate monitoring of Long-Term Management Plan 2030, a high level ofawareness was observed regarding such matters as the contents of reporting by corporate
executive officers on business execution, themes for improving the strength of monitoring,and the balance between the time used for briefings and the time used for discussions.

(1) Main Items Improved Since the Previous Evaluation
Major Tasks for Further Enhancing Board Effectiveness Since the FY2021 Effectiveness Evaluation and
Future Initiatives
 ngagement in more substantive discussions, including on evaluation of progress regarding the long-term manEagement plan and revision of the plan’s strategies in accordance with changes in the management environment
 ngoing implementation, centered on the Nominating Committee, of initiatives designed to further raise the levelOof diversity of the Board of Directors

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

1. Process of Evaluation 80(1) Method of Evaluation
All directors conducted self-evaluations in the form of a response to a questionnaire related to the composition, operation, effectiveness, etc., of the Board of Directors and each of the Nominating, Audit, and Remuneration committees.
Taking these results into consideration, directors discussed the issues with each other and examined proposed corrective measures at Board of Directors’ meetings.
Step 1

Step 2Issuance of a questionnaire to all
directors

Discussion at a meeting of theBoard of Directors in light of theevaluation results

Step 3

Launch of initiatives based on
the Board’s approval(2) Items of Evaluation
In terms of evaluation items based on Long-Term Management Plan 2030, the Company has confirmed “diversity for fulfilling the oversight functions of the Board of Directors” as part of the evaluation of the Board’s composition and “topics
to be fleshed out in future discussions for monitoring and the nature of reports on the status of business execution from
corporate executive officers” as part of the evaluation of the Board’s effectiveness and operation.

Composition of theBoard of Directors

Proportion of outside directors, size of membership, and diversity

Effectiveness of theBoard of Directors

Management plan, monitoring of execution of business and risk management systems, dialogue with shareholders and investors, operation of the Nominating, Audit, and Remuneration committees, etc.

Operation of theBoard of Directors

Method and frequency of meetings, required time, report on status of business execution of corporate executive officers, provision of information outside of Board of Directors’ meetings, questions and answers, training,etc.

Others

Method of the evaluation of the effectiveness of the Board of Directors, etc.

FY2022 Initiatives
	Having continuously organized briefings on the Company’s businesses for outside directors and exchanged opinionswith them, the Board of Directors dedicated sufficient time to monitoring (including through reports, discussions,and exchanges of opinions) the state of execution of themes in Long-Term Management Plan 2030, including
Companywide issues.
	At meetings of the Nominating Committee, discussions were held and opinions were exchanged regarding thelevel of diversity of members of the Board of Directors and the skills that they should possess to achieve LongTerm Management Plan 2030, with a skills matrix being disclosed and director candidates appointed based on
factors including their skills.

(2) Main Issues and Future Initiatives Aimed at Further Improvements in Board EffectivenessThrough a process of examination and discussion at Board of Directors’ meetings, the following points wereidentified.
	The management environment has changed significantly due to the spread of COVID-19 and other factors.
Accordingly, to deepen discussions on progress evaluations of and strategy revisions to the long-term management plan, the Board of Directors must examine ways to expand and enhance its monitoring on a continuous basis
to ensure supervision with an awareness of Companywide issues, including changes in the management environment, capital policies, and business portfolio strategy, as well as sustainability.
	Examinations of the composition and diversity of the Board of Directors must be implemented on an ongoing basis
to further improve the Board’s effectiveness.

81Remuneration

The decision-making policy concerning details of remuneration for each director and corporate executive officer of theCompany is deliberated at meetings of the Remuneration Committee. The Remuneration Committee also confirms thatthe method for deciding the details of remuneration paid to each director and corporate executive officer for each fiscal
year as well as the details of each decided amount of remuneration are consistent with said policy. For the fiscal year
under review, the Remuneration Committee deemed that the remuneration paid to each director and corporate executive
officer was in line with the decision-making policy.

Indicators and Process for Calculating the Evaluation Index

Total remuneration(Millions of yen)Fixed remuneration(Millions of yen)

Performance-based
remuneration(Millions of yen)

Recipients

261

261

—

4

Corporate executive
officers

1,139

622

516

16

Outside directors

108

108

—

7

Inside directors

Note 1: Remuneration for the Company’s directors who concurrently serve as corporate executive officers is included in the remuneration for corporate executive officers.
Note 2: The number of inside directors and corporate executive officers includes one inside director and one corporate officer who resigned during FY2022.

Performance of
responsible­division: 50*1

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Corporate Governance

Board Policies and Procedures in Determining the Remuneration of Senior Management and Directors(i) Procedures for Deciding Remuneration Paid to Officers
The policy concerning decisions on the details of remuneration paid to directors and corporate executive officers of the Company
and the details of remuneration for each person shall be decided upon by a resolution of the Remuneration Committee, which comprises solely outside directors.
(ii) The Basic Policy for Deciding Remuneration for Officers
The basic policy for deciding remuneration for directors and corporate executive officers of the Company is as follows.
• The remuneration system shall be linked with our medium- to long-term performance targets, etc., aimed at in management strategies
and medium-term management plans and realize sustained corporate value improvement and the sharing of value with our shareholders.
• The remuneration system shall allow for the giving of incentives to management executives to encourage them to take on challenges
and conduct appropriate risk-taking in line with the above strategies’ targets and expectations of shareholders and other stakeholders.
• The remuneration system shall make it possible to fulfill high accountability for the benefit of our shareholders and other stakeholders through objective deliberations and judgments by the Remuneration Committee.
(iii) Remuneration Systems for Officers
Remuneration systems for directors and corporate executive officers shall be separately established in consideration of their respective functions and roles to be fulfilled for the purpose of achieving sustained corporate value improvement. In addition, directors who
concurrently serve as corporate executive officers shall be paid remuneration as corporate executive officers.
• Directors (excluding directors who concurrently serve as corporate executive officers)
In consideration of their function and role of supervising the performance of duties by corporate executive officers and directors,
they shall receive, in principle, only basic remuneration in the form of cash, and the standards shall be decided upon individually
taking into account factors such as their position and responsibilities as directors and whether they are full-time or part-time.
• Corporate executive officers
	In consideration of their function and role of taking charge of business execution of the Company, their remuneration shall, in principle, comprise basic remuneration and variable remuneration. Variable remuneration comprises monetary compensation that is
paid based on short-term performance, etc., and stock compensation, etc. (including monetary compensation paid based on indicators such as stock price), that is paid with a view to realizing the medium- to long-term sharing of value with shareholders. The
standards and ratios of basic remuneration and variable remuneration, valuation indicators for variable remuneration, and othermatters shall be decided upon taking into account medium- to long-term performance targets, etc., aimed at in management
strategies and the current management plan and factors such as position and responsibilities as corporate executive officers.

Short-term incentive remuneration

Fixed remuneration

Single-year, performance-based
remuneration
25%

Medium- to long-term incentive
remuneration
Restricted stockcompensation
12.5%

Phantom stock
12.5%

Performance-based remuneration

Overview of Performance-Based Remuneration(i) Single-Year, Performance-Based Remuneration
1 Form of remuneration: cash
2 Performance evaluation and method for determining remuneration
With the aim of achieving further corporate growth and greater efficiency while guaranteeing financial soundness, the amount of
remuneration varies depending on consolidated operating profit, EBITDA, ROA, ROE, and the target level of operating profit in thedivisions for which the individual officers are responsible.
When determining remuneration, the amount is calculated using the actual indicators, etc., for the previous fiscal year, to which isadded an evaluation of qualitative aspects, established during interviews with the president,* including the degree of contribution to
performance over the medium to long term and the status of ESG-related initiatives, with the final remuneration amount being
decided by the Remuneration Committee.
Companywide performance and the performance of the officer’s division impact remuneration amounts at a ratio of 50:50. The
fluctuation range for remuneration is 0% to 200% of the base amount. The results for performance in the previous fiscal year were155.9% for Companywide performance and, on average, 111.5% for divisional performance.
* The president is only evaluated based on Companywide performance.

82

Achievement ratio comparedwith annual business plantargets: 20

	Use the four indicators of consolidated operating profit, EBITDA, ROA, and ROE(1:1:1:1)
	Level of payment determined through comparisons with figures for the four
above indicators under annual business plans (payment level of 100% if in linewith the plan’s targets, but can fluctuate between 200% and 0% depending on
the level of achievement)

Corporate executive officers and executive officers
	1 Level of achievement toward the business group budget: Use consolidated operating profit as a general rule
2 Medium-term initiatives: approximately five years ahead, includes ESG initiatives
3 Initiatives to establish new business models: new business creation, non-asset businesses, service andcontent provision, etc.
	4 Initiatives to realize earnings for the entire Mitsubishi Estate Group: use the four indexes at a ratio of
10:10:10:20 for initiatives that go beyond the business group, etc. (initiatives that go beyond the individual rolein the case of Group executive officers)	Employees are interviewed by the president & chief executive officer, who assesses each item using three levels(200%, 100%, and 0%*2).
Group executive officers
	Use the four indicators of “level of achievement toward the individual company’s budget,” “medium-term­initiatives,” “initiatives to establish new business models,” and “initiatives to realize earnings for the entire
Mitsubishi Estate Group” at a ratio of 20:10:10:10.
	Evaluation method is the same as that for corporate executive officers and executive officers.

*1 Accounts for 12.5% of total remuneration*2 Targets for each item listed in annual business plans, with evaluations conducted using the details of these targets with a the base score of 100%(ii) Medium- to Long-Term Performance-Based Remuneration (Remuneration by Shares with Restriction on Transfer)
1 Form of remuneration: Shares
2 Restricted stock period: Approximately three years
3 Performance evaluation and method for determining remuneration
With the objectives of creating an incentive to work for sustainable growth and of promoting the further sharing of value withshareholders, the Company adopted stock-based remuneration with a restricted transfer period of approximately three years. The
amount of monetary compensation that can be claimed when allocating stock is determined by the Remuneration Committee.
(iii) Medium- to Long-Term Performance-Based Remuneration (Phantom Stock)
1 Form of remuneration: cash
2 Performance evaluation period: approximately three years
3 Performance evaluation and method for determining remuneration
With the objectives of creating an incentive to work for sustainable growth and of promoting the further sharing of value withshareholders, the amount of phantom stock remuneration varies depending on the share price and on an indicator based on the
Company’s total shareholder return (TSR) ranking relative to five peer companies.*1 The base amount by position and the final
remuneration amount are determined by the Remuneration Committee.
*1 Five peer companies: Nomura Real Estate Holdings, Inc., Tokyu Fudosan Holdings Corporation, Mitsui Fudosan Co., Ltd., Tokyo Tatemono Co., Ltd., and Sumitomo Realty &Development Co., Ltd.
4

Calculation method for individual amount paid
Remuneration
Remuneration base=×amountamount*2

Share price in final month of performance evaluation period
Issue price×

Vesting ratio*3*2 Remuneration base amountThe remuneration base amount corresponds to the rank of the officer eligible for payment, as listed below.

Composition of the Remuneration of Corporate Executive Officers

Basic remuneration
50%	Use the four indicators of consolidated operating profit, EBITDA, ROA, and ROE(1:1:1:1)
	Use standard deviation to calculate the level of difficulty of achieving the­performance of the relevant fiscal year compared with performance over thelast five fiscal years	Fluctuation range of 200%–0%Companywide
performance:
50*1

Total Remuneration Paid to Directors, Corporate Executive Officers, and Statutory Auditors in FY2022
Category

Achievement ratio comparedwith performance over thelast five fiscal years: 30

President & chief executive officer¥19,647,000

Deputy president¥12,675,000

Executive vice president¥10,413,000

Senior executive officer¥8,352,000

Corporate executive officer¥6,288,000*3 Vesting ratio
A rank is given to the TSR of the Company and its peers. The percentages in the table below correspond to the Company’s TSR rank, with 100% being the upper limit.

TSR rank
Vesting ratio

1st
100%

2nd
80%

3rd
60%

4th
40%

5th
20%

6th
0%

TSR is calculated using the formula below.

TSR=(Share price for the final month of the performance evaluation period – Share price for the first month ofthe performance evaluation period) + Total dividends per share for dividend distributions with a record datewithin the performance evaluation period (excluding the final month of the performance evaluation period)
Share price for the first month of the performance evaluation period(IV) Remuneration Payment Period
Payment periods for remuneration other than basic remuneration, which is fixed, will begin from the upcoming fiscal year. The
payment schedule is as follows.
X fiscal year
X fiscal year + 1 X fiscal year + 2 X fiscal year + 3
fiscal year
fiscal years
fiscal years
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Basic remuneration
Single-year, performancebased remuneration
Remuneration by shareswith restriction on transfer
Phantom stock

Notes
As remuneration amounts are determined by rank, in the event an officer changes
rank during a fiscal year, the amount will change starting from the month in which theofficer assumes the new rank.
The performance evaluation of the previous fiscal year is reflected in remunerationfrom July of the following year.
While stock is allocated in the relevant fiscal year, the restriction on transfer is not
lifted until three years after allocation.
This remuneration is paid after three years and upon completing an evaluation of performance during said three-year period.

83Remuneration

1 E
 nhancement of the linkage between officer performance evaluation indicators and Long-Term Management Plan 2030
In addition to making performance evaluation indicators more consistent with key performance indicators in Long-Term
Management Plan 2030, the revision aims to enhance the commitment of officers to achieving the goals of the plan byintroducing evaluation items linked to it.
2 P romotion of the alignment of shareholders’ and officers’ interests
The revised system raises the percentage of remuneration linked to the Company’s share price to 30% (previously 25%)of the total by introducing a new restricted stock compensation system in which the amount of monetary compensation
varies according to performance. In addition, with the aim of further aligning shareholders’ and officers’ interests, therevision extends the restricted stock transfer period from its current period of approximately three years to the time
when an officer resigns.

Corporate Governance

3 Revision of composition of remuneration
The revised system changes the proportion of variable compensation to 60% (previously 50%) to increase the incentives
provided by the officer remuneration system.
Note: Eligible officers: corporate executive officers, executive officers, and Group executive officers (unchanged from the previous system)

Comparison of the Composition of Remuneration with That of the Previous System
Performance-based component(25%)

Previous system
Basic remuneration
50%

Single-year, performancebased remuneration
25%

Fixed remuneration

Share price-linked component(25%)
Restricted stock­compensation (fixed)
12.5%

Variable remuneration (50%)
Performance-based component (40%)(Enhances the linkage of evaluation itemswith those of the long-term management plan)

Revised system

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Basic remuneration
40%

Phantom stock
12.5%

Performance-based monetary compensation
30%

Fixed remunerationF orm of remuneration: Cash2P
 erformance evaluation and method for determining remuneration10

 se the four indicators of consolidated business profit, ROA, ROE, and EPS (1:1:1:1)
U
Use standard deviation to calculate the level of difficulty of achieving the performance of therelevant fiscal year compared with performance over the last five fiscal years
Fluctuation range of 200%–0%Achievement ratio compared with annual business plan targets

30

 se the four indicators of consolidated business profit, ROA, ROE, and EPS (1:1:1:1)
ULevel of payment determined through comparisons with figures for the above four indicators
under annual business plans(Level of payment is 100% if achievement is in line with the plan’s targets but fluctuates
between 200% and 0% depending on the level of achievement)

Level of achievementcompared with targets
for three businesses
stipulated in the longterm management plan10

 evel of payment determined through comparisons with targets for three businesses (domestic,L
overseas, and non-asset) stipulated in the long-term management plan
(Qualitative assessment using five levels (200%, 150%, 100%, 50%, and 0%))

Achievement ratio compared with performanceover the last five fiscal
years

Controlling Officers and Group Executive Officers
The following four indicators used at a ratio of 20:10:10:10

Level of achievement ofdivisional annual targets
for achieving the goalsof the long-term management plan

50

Restricted stock compensation(Variable component) (Fixed component)
10%
10%

Phantom stock10%

1 Level of achievement toward the business group budget: Use consolidated business profit as a
general rule (level of achievement toward the individual company budget for Group executive
officers)
2 Medium-term initiatives: approximately covering upcoming five years, includes ESG initiatives
3 Initiatives to establish new business models: new business creation, non-asset businesses,
service and content provision, etc.
4 Initiatives to realize earnings for the entire Mitsubishi Estate Group: initiatives that go beyond
the business group, etc. (initiatives that go beyond individual companies in the case of Group
executive officers)Officers interviewed by the president & chief executive officer, who assesses them on each item
using five levels (200%, 150%, 100%, 50%, and 0%*)* Targets for each item listed in annual business plans, with evaluations conducted using the details of these targets with abase score of 100%

Other Executive Officers
Use the four indicators of “level of achievement toward the business group budget,” “mediumterm initiatives,” “initiatives to establish new business models,” and “initiatives to realize
earnings for the entire Mitsubishi Estate Group” at a ratio of 10:10:10:20
Evaluation method the same as that for controlling officers and Group executive officers

Share price-linked component(30%)* Accounts for 15% of total remuneration

Variable remuneration (60%)

2. Overview of Variable Remuneration under the Revised System(1) Performance-Based Monetary Compensation
1

Companywide performance: 50*

1. Overview and Purpose of the Revision of the Officer Remuneration System

Indicators and Process for Calculating the Evaluation Index

Performance of responsible division: 50*

Revision of the Officer Remuneration System
The Remuneration Committee adopted a resolution at a meeting of the committee held on March 31, 2022, to revise theofficer remuneration system with effect from April 1, 2022. The purpose of the revision and an overview of the remuneration system following the revision are described below.

 ith the aim of achieving further corporate growth and greater efficiency while guaranteeing financial soundness, theWamount of remuneration varies depending on consolidated business profit, ROA, ROE, EPS, and the target level of business profit in the divisions for which the individual officers are responsible.
 hen determining remuneration, the amount is calculated using the actual indicators, etc., for the previous fiscal year,W
to which is added an evaluation of qualitative aspects, established during interviews with the president, including thedegree of contribution to performance over the medium to long term and the status of ESG-related initiatives, the levelof progress of each business (domestic, international, and non-asset) in achieving targets stipulated in Long-Term
Management Plan 2030, with the final remuneration amount being decided by the Remuneration Committee. Please see
the table on page 85 for details.

(3) Medium- to Long-Term Performance-Based Remuneration (Phantom Stock)
1 Form of remuneration: cash
2 Performance evaluation period: approximately three years
3 Performance evaluation and method for determining remuneration
With the objectives of creating an incentive to work for sustainable growth and of promoting the further sharing of value
with shareholders, the amount of phantom stock remuneration varies depending on the share price and on an indicator
based on the Company’s total shareholder return (TSR) ranking relative to five peer companies.*1 The base amount by
position and the final remuneration amount are determined by the Remuneration Committee.
*1 Five peer companies:
Nomura Real Estate Holdings, Inc., Tokyu Fudosan Holdings Corporation, Mitsui Fudosan Co., Ltd., Tokyo Tatemono Co., Ltd., and Sumitomo Realty & Development Co., Ltd.
4

Calculation method for individual amount paid
Remuneration amount=

Remunerationbase amount*2

×

Share price in final month of performance evaluation period
Issue price×

Vesting ratio*3*2 Remuneration base amountThe remuneration base amount corresponds to the rank of the officer eligible for payment, as listed below.

(2) Remuneration by Shares with Restriction on Transfer (Fixed and Variable Components)
1F orm of remuneration: Shares

2Restricted stock period: Until an officer resigns

3P erformance evaluation and method for determining remuneration

 ith the objectives of creating incentives for officers to achieve sustainable growth and of further aligning officers’Winterests with those of shareholders, the Company adopted stock-based remuneration with a restricted transfer periodthat runs until the time an officer resigns. The amount of monetary compensation that can be claimed when allocatingstock is determined by the Remuneration Committee.
 he Company will determine the method for deciding variable remuneration and the major evaluation items by usingT
the same evaluation items as those for (1) Performance-based monetary compensation.

84

President & chief executive officer¥19,647,000

Deputy president¥12,675,000

Executive vice president¥10,413,000

Senior executive officer¥8,352,000

Corporate executive officer¥6,288,000*3 Vesting ratio
A rank is given to the TSR of the Company and its peers. The percentages in the table below correspond to the Company’s TSR rank, with 100% being the upper limit.

TSR rank
Vesting ratio

1st
100%

2nd
80%

3rd
60%

4th
40%

5th
20%

6th
0%

TSR is calculated using the formula below.

TSR=(Share price for the final month of the performance evaluation period – Share price for the first month ofthe performance evaluation period) + Total dividends per share for dividend distributions with a record datewithin the performance evaluation period (excluding the final month of the performance evaluation period)
Share price for the first month of the performance evaluation period

85

Dialogues with Shareholders and Investors (ESG Meetings)

Mitsubishi Estate holds integrated ESG meetings that focus on the non-financial aspects of its ESG activities to enable
shareholders and investors to gain an understanding of the direction of its management over the long term.
We relay the opinions, requests, proposals, and other feedback that we receive through such dialogues to senior
management at meetings of the Board of Directors. By incorporating the results of the dialogues into a plan–do–check–act (PDCA) cycle, we aim to achieve continuous growth.

Step 1

Corporate Governance

Hold ESG meetings

Step 2

Implement a questionnaire of meeting
participants

Step 3

Step 4

Discuss matters based on
the content of the meetings and the results of thequestionnaire and identify issues

Take action in response to
the identified issues

S(1) Achievements over the Last Two Fiscal Years
In addition to the Sustainability Management and Promotion Department, which is in charge of environmental and social
matters, and the General Affairs Department, which oversees corporate governance, the Company holds ESG meetings
with the attendance of the Investor Relations Office when requested.
The number of ESG meetings held by the Company in FY2021 and FY2022 was as follows.
Number of companies for which meetings were held
(total number of companies)

Distribution ratio (number of shares issued)*

Corporate shareholders andinstitutional investors in Japan

25

Approximately 31%

Overseas institutional investors

17

Approximately 14%

Total

42

Approximately 44%* Estimated based on the results of a shareholder identification survey outsourced to a third-party institution inquiring into beneficial owners using the shareholders’ register(as of March 31, 2022)

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

E(2) Questionnaire Results (Meeting Participants in FY2022)
At the close of ESG meetings, we implemented a questionnaire of participants regarding their level of satisfaction withthe dialogue and their rating of our ESG initiatives, in order to measure the effectiveness of integrated ESG meetings andascertain areas for improvement and other matters to reflect in future dialogues.
In the results of the FY2022 questionnaire, many participants commented that the opportunity to exchange opinions in
a comprehensive manner in an integrated ESG meeting was instructive and efficient. In addition to a satisfaction levelexceeding 80%, 30% of the companies that participated responded that the meetings helped improve their rating of
Mitsubishi Estate.
Changes in Shareholders’ andInvestors’ Evaluation of
Mitsubishi Estate’s Dialogue
Efforts

Satisfaction with Dialogue

Worsened0%

Somewhat Dissatisfied
dissatisfied 0%0%
Generallysatisfied
14%

Improved
30%
Unchanged
70%

Evaluation of ESG Activities
(%)
100
80
60

Status of responses	Declared goal of achieving net-zero carbon emissions by
2050 in accordance with the standards of the Science
Based Targets (SBT) initiative	Can Mitsubishi Estate bring forward the schedule forachieving its goal in relation to RE100?

	Brought forward significantly the schedule for achieving
the Company’s goal in relation to RE100 from 2050 to 2025

	The low level of the target for increasing the percentage
of female managers is a matter of concern.

	Upwardly revised the targets for the percentage offemale managers from 10% by 2030 to over 20% by
FY2031, 30% by FY2041, and 40% by FY2051

	The percentage of male employees taking childcare
leave of absence is low. Efforts are required to eliminate
differences between male and female employees intaking childcare leave.

• Strengthened calls to relevant male employees andsignificantly increased the percentage of those taking
leave from 21.2% in FY2019 to 52.2% in FY2022, with theultimate goal of achieving a childcare leave of absence
rate of 100% among such employees by FY2031

	The number of female directors must be increased todiversify the composition of the Board of Directors.

	Increased the number of female directors

	The Company must disclose a skills matrix and a process
for selecting directors based on such a skills matrix.

	Disclosed a skills matrix and revised appointment
standards for director candidates	A third-party evaluation of the Board of Directors is
recommended.

	Introduced a third-party evaluation component to theevaluation of the Board of Directors, with the Board
confirming a policy to implement the third-party
evaluation once every several years

	The Company should consider more detailed disclosure ofmilestones for overall remuneration, KPIs for single-year,
performance-based compensation, and other systems.

	Carried out more detailed disclosure regarding the
remuneration system through the Company’s website
and integrated report and disclosed information on thesystem in English• As the alignment of long-term interests between officers
and shareholders is weak, the Company should consider
raising the percentage of share-based remuneration.

	Revised the remuneration system: increased thepercentage of performance-based and share-based
remuneration, while extending the restricted stocktransfer period to the time when an officer resigns

Shares Held for Strategic Purposes
The Company acquires and holds shares for other than purely investment purposes if it deems such shareholdings to be
useful in facilitating the Group’s business activities smoothly in cases such as when seeking to maintain or reinforce
medium- to long-term transactional relationships or in procuring funds on a stable basis.
In regard to the holding of listed shares as investment shares for other than purely investment purposes, we examine
the rationality of such holdings from the perspective of whether they are useful or not in facilitating the Group’s businessactivities smoothly, focusing on such aspects as the background of the acquisition, record of transactions, status ofcooperative and collaborative relationships, and level of dividend payouts. The findings of these examinations, as well as
the number of reductions of such shares and the policy on reductions going forward, are reported to the Board of
Directors at least once a year, and we are proceeding with sales in an appropriate manner.
In addition, the Company has been conducting ongoing investments in venture businesses since FY2016. Centered on
the Innovation and Business Transformation Group, these efforts are aimed at heightening the value of existing businesses and expanding the Company’s business domains through the utilization of technologies and coordination withexternal partners.

40
200
E (initiatives) E (disclosure) S (initiatives) S (disclosure) G (initiatives) G (disclosure)

Satisfied
86%

G

Comments and proposals

	Given the increasing number of companies declaring
net-zero carbon emissions targets for 2050, Mitsubishi
Estate should also consider making such a declaration.

Excellent

Good

Average

Somewhat insufficient

Holdings of Shares Held for Strategic Purposes(Total for Listed and Non-Listed Companies)

Change in Disposal of Shares Held for Strategic Purposes

170

20
2

160

17.9
4

150

(3) Major Issues Addressed in Response to Issues Raised during Meetings
We have communicated the comments and proposals received at ESG meetings to the Board of Directors and arecontinuously examining ways to address them in order to make further improvements.
The status of our responses to the issues hitherto raised is as follows.

15

8
16

140
130

(Billions of yen)

166

22

30

10

164
152

120

12.2

34

148
138

134

110

133

129

8.4

5
1.4

100

0

FY2015FY2016FY2017FY2018Non-new business-related holdings

FY2019FY2020

FY2021

FY2022FY2016FY20174.2

4.2

FY2020

FY2021

0.0

FY2018FY2019FY2022New business-related holdings

Please refer to our Corporate Governance Report for more information on our corporate governance system.
https://www.mec.co.jp/e/investor/governance/materials/pdf/corp220711e.pdf

8687

Directors

Corporate Executive Officers, Executive Officers, andGroup Executive Officers(As of June 29, 2022)

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Corporate Governance(As of April 1, 2022)

88

Hirotaka Sugiyama

Junichi Yoshida

Junichi Tanisawa

Atsushi Nakajima

Junichi Yoshida

Junichi Tanisawa

Futoshi Chiba

Kenji Hosokane

Chairperson of the Board

DirectorDirectorDirector

2007
63,391 shares

2016
78,593 shares

2014
54,930 shares

2022
27,314 shares

Representative Corporate
Executive Officer
President & Chief
Executive Officer

Representative Corporate
Executive Officer
Deputy President

Representative Corporate
Executive Officer
Executive Vice President

Representative Corporate
Executive Officer
Executive Vice President

Naoki Umeda

Hitoshi Kubo

Noboru Nishigai

Hiroshi Katayama

Atsushi Nakajima

Yuji Fujioka

Keiji Takano

Bunroku Naganuma

DirectorDirector

Director

Director

2021
29,801 shares

2016
38,070 shares

Representative Corporate
Executive Officer
Executive Vice President

Senior Executive Officer

2021
7,197 shares

Representative Corporate
Executive Officer
Executive Vice President

Senior Executive Officer

2022
14,601 shares

Tsuyoshi Okamoto

Tetsuo Narukawa

Masaaki Shirakawa

Shin Nagase

Toru Kimura

Yutaro Yotsuzuka

Ikuo Ono

Naoki Umeda

Outside Director

Outside Director

Outside Director

Outside Director

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

2019
1,000 shares

2018
1,200 shares

2016– shares2016
300 shares

Setsuko Egami

Iwao Taka

Melanie Brock

Haruhiko Araki

Masaki Yamagishi

Masaharu Miyajima

Ryozo Kawabata

Outside Director

Outside Director

Outside Director

Senior Executive Officer

Group Executive Officer

Group Executive Officer

Group Executive Officer

2015
3,200 shares

2016
1,000 shares2022– shares

Name
Position
Appointment year
Number of shares held
(As reported in FY2022 Financial
Report, available only in Japanese)

Corporate Executive Officer

Executive Officers

Hitoshi Kubo

Takashi Kobari
Toshiyuki Inoue
Seijin Chino
Shuichi Shimizu
Masanori Iwase

Group Executive Officers

Toru Takeda
Masahiro Murai
Mikihito Hirai

Masaki Yamagishi
Masaharu Miyajima
Ryozo Kawabata
Tetsuya Okusa
Nobuhiro Okumoto

Shinya Mizumura
Masato Aikawa
Hirofumi Kato
Atsuhiko Oida

89

Message from an Outside Director

Message from an Outside Director
 onstruction of an Officer Remuneration System Geared toward the Pursuit ofC
Sustainable Profits

Mitsubishi Estate will foster a corporate­culture that creates sustainable corporate
value by diversifying the composition ofits Board of Directors and formulating an

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Corporate Governanceappropriate officer remuneration system.

90

Masaaki Shirakawa
Outside Director(Chairperson of the Remuneration
Committee and Member of theNominating Committee)

 fforts to Diversify the Composition of the Board of Directors Will HelpE
Mitigate Risks
I became an outside director of Mitsubishi Estate in June 2016. Looking back at the Company’s operating environment
over the past almost 20 years, a variety of truly significant changes have taken place, such as increasing globalization,technological advancement, and the growth of geopolitical risks.
In the midst of such changes in the operating environment, I think that Mitsubishi Estate has worked proactively to
evolve its governance framework. Mitsubishi Estate transitioned to become a Company with Nominating Committee, etc., in2016, the year I became an outside director. Since then, I have been struck by how earnestly the Company has implemented revisions to its corporate governance in accordance with the needs of society, such as appointing outside directors
as chairpersons of its three committees and ensuring that each committee is membered by a majority of outside directors.
The greatest obstacle preventing boards of directors and committees from reaching proper final decisions, particularly regarding complex and nuanced matters, is if their memberships are too homogenous or not broad enough inperspective. Consciously ensuring diversity is extremely important in order to minimize such a risk. The backgrounds ofMitsubishi Estate’s outside directors are truly diverse, including those who have engaged in corporate management andthose who are specialists in environmental, social, and governance (ESG)-related matters and compliance, while my own
background is in macroeconomics and finance. In this way, the composition of the Board of Directors is suitable for facilitating a monitoring system for a company operating in the real estate business, which entails extensive touchpoints
with society and long-term engagement.
With the aim of clarifying its stance of emphasizing the diversity of its Board of Directors, Mitsubishi Estate formulated
and unveiled a skills matrix identifying the skills that its directors must possess to ensure that the Board of Directors
properly fulfills its management oversight and monitoring functions going forward. Given that the Company has long
been keenly aware of the importance of ensuring the diversity of the Board of Directors, I feel that the unveiling of theskills matrix was more a case of giving form to what the Company had already been emphasizing. While I think it ismeaningful to give form to such matters, further enhancing diversity meaningfully and tangibly—including increasing
female representation among management personnel—and fostering an organizational culture and atmosphere thatenable discussions in a free and open-minded manner among all directors are of even greater significance. As an outside director, I hope to contribute to the achievement of this goal.

Mitsubishi Estate revised its officer remuneration system in April 2022. As chairperson of the Remuneration Committee,
I was involved in this revision, which aims to further incentivize officers to achieve the goals of Long-Term Management
Plan 2030, by strengthening the linkage between said system and said plan while further aligning shareholders’ andofficers’ interests by raising the percentage of remuneration linked to the Company’s shares and share price.
The global financial crisis between 2007 and 2009, symbolized by the collapse of Lehman Brothers, provides valuablelessons for reflecting on corporate management. For me, one of the causes of the global financial crisis was the shortterm bias of financial markets. Put simply, such markets pursued short-term profitability rather than sustainable profits
over the medium to long term. I was long involved in monetary policy formulation and implementation at the Bank ofJapan, during which I became greatly aware of the strengths and weaknesses of financial markets. Based on such experience, I would say that, while enhancing incentives for officers is the correct direction to take, it must not be forgottenthat such incentives must serve to strengthen the linkage between remuneration and sustainable profit generation.
There is a saying that “the devil is in the details.” In the process of revising the officer remuneration system this year,
I participated in discussions based on my awareness of the need to ingrain ways of thinking and acting to facilitate thepursuit of sustainable profits and realize improvements in Mitsubishi Estate’s share price over the medium to long term.

 romotion of Appropriate Management Decisions as an Organization Seeking
P
True Value
While I had several reasons to accept the position of outside director at Mitsubishi Estate, my interest in the real estatebusiness had a major influence on my decision. This interest is rooted in my experience of working at a central bankover many years. As many fluctuations in the Japanese and overseas economies have been connected to fluctuations in
the real estate market, I have long been interested in the real estate business.
Another reason is that I believe the true state of a country’s economic competitiveness is greatly influenced by the competitiveness of its cities. It is for this reason that Mitsubishi Estate’s brand slogan—“A Love for the People. A Love for the City”—
appeals to me greatly. Since cities are where people gather to work and live, they are also where ideas converge and innovations
are created. That, for me, is the function of cities. While improving the appeal of cities is a major mission of Mitsubishi Estate’s,such improvement is integral to raising the competitiveness of the Japanese economy. With this in mind, I thought that being
involved in the real estate business as a member of the Company’s Board of Directors would be rewarding work.
Mitsubishi Estate is currently committed to achieving Long-Term Management Plan 2030. Ultimately, however,improvements in the Company’s corporate value will be determined by the level of its success in meeting the true needsof society, which are tangible. Although financial strategies and capital policies are undeniably vital in terms of improving
resilience to inevitable economic shocks, they do not in and of themselves raise corporate value.
Corporate performance is reflected in return on assets, return on equity, earnings per share, and other financial indicators. Accordingly, setting targets for such indicators, as emphasized in Long-Term Management Plan 2030, is crucial.
Nevertheless, such targets will be meaningless unless they are sustainable and not ephemeral numerical values. For
aspects of corporate performance that are difficult to express quantitatively, I believe that incorporating such aspects basedon qualitative judgments—rather than excluding them because of such difficulty—and implementing management that
integrates both quantitative and qualitative information will lead to an improvement in Mitsubishi Estate’s corporate value.

 ontribution to the Development of a Governance System in Line withC
a Company That Builds Trust
People are the drivers of corporate growth. Accordingly, ensuring that those with whom Mitsubishi Estate’s brand slogan
resonates can tackle their work with motivation is crucial. It is also absolutely essential to be an organization capable of
attracting human resources who can respond to increasing globalization and technological advancement. The Company
must be an organization that facilitates high-quality decision-making to make it the first choice of such humanresources with specialized expertise and skills. Achieving this goal is contingent upon developing a governance systemthat is appropriate for an organization capable of responding to change, and I sense that outside directors are expected
to provide the expertise to realize this development. I believe people regard Mitsubishi Estate as a trustworthy company.
As the real estate business entails working with a long-term perspective, such trust is of the utmost importance.
Propagating the brand slogan—“A Love for the People. A Love for the City”—to ensure that Mitsubishi Estate can continue
living up to the trust of society, I aim to fulfill my role as an outside director to help the Company contribute to society
through its business activities.

91

Risk Management

Risk Map
Risk Impact

Moderate

Risks that necessitate theimprovement of existing measuresor introduction of new measures

Risks that are appropriately
dealt with by continuing
existing measures

Status of Control

The Mitsubishi Estate Group has established the Mitsubishi Estate Group Risk Management Rules and has set up a risk
management system to manage risks in all of its business activities. Mitsubishi Estate has also established the Risk
Management & Compliance Committee to oversee the Group’s risk management and formed the Risk Management &Compliance Subcommittee as a working-level consulting body responsible for such matters as the collection of risk
management-related information. The corporate officer in charge of risk management is appointed by resolution of theBoard of Directors to take responsibility for overseeing risk management, and general managers of business groups andgeneral managers from Group departments have been designated as risk management officers. We promote risk management activities through the Mitsubishi Estate Legal & Compliance Department, which serves as the secretariat.
We have also established and implemented action guidelines, contact and initial response systems, and business
continuity planning for use in times of crisis.

High

Candidates for risks needing
countermeasures in the future

Key risks requiring countermeasuresduring fiscal year

Ongoing risks requiring countermeasures(moderate impact)

Ongoing risks requiring countermeasures(high impact)

Risk Management and Compliance System(As of April 2022)

Board of Directors
Decision of basic
policy supervision

Appointment

ReportingCorporate GovernanceVice-Chairperson

Mitsubishi Estate

Mitsubishi Estate President &Chief Executive Officer

Corporate Officer in
Charge of Risk Management
and Compliance= Responsible for overseeing risk management= Responsible for overseeing compliance
Overallmanagement

Risk Management & Compliance Committee

Risk Management and Compliance-Related Deliberation andDecision-Making Bodies

Chairperson

Corporate Officer in Charge of Risk Management and Compliance

Among the various risks recognized by the Mitsubishi Estate Group, risks related to investment projects are identified by
the Strategic Investment Office, which is responsible for investment decision rules, through assessments to verify business viability. Prior to the deliberation of important investment projects by the Executive Committee, which is chaired by
the president & chief executive officer and is responsible for strategy planning for the entire Group and monitoring of the
progress of each business toward realizing their strategies, the Strategic Investment Committee deliberates and evaluates profitability, the nature of risks and related countermeasures, and other matters. At each phase, risk assessments
are also conducted from legal and financial aspects in order to grasp an overall picture of the aforementioned risks.

Mitsubishi Estate
Directions
through eachduty

Risk Management
Promotion Officers(Line and Staff Departments,
Others)Compliance Promotion
Officers(General Managers)

Committee Members

Mitsubishi Estate Directors, Representatives from
Main Group Companies
Mitsubishi Estate

ReportRisk Management
Promotion Personnel

Compliance Promotion
Personnel

Guidance AssistanceOutside Experts

Chairman of the Board
Full-Time Members of the Audit Committee
General Manager of Internal Audit Office(Invited as necessary)Group Company

Risk Management Officer
MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Risk Management Related to Investment Projects ReportingCompliance Officer

Strategic Investment Committee 
In its deliberations, in addition to assessing the economic viability of a given project using multiple indicators, theStrategic Investment Committee verifies the appropriateness of various aspects of premises, such as rents, unit selling
prices, and construction costs. For risks, in particular, simulations of upside and downside scenarios are incorporated
into investment decision rules. The difference between the scenario set by the responsible business group in charge ofthe project and the downside scenario is recognized as risk. The Strategic Investment Committee holds discussions on
the acceptable limits of that risk.

Risk Management & Compliance Subcommittee

Risk Management and Compliance-Related Deliberation andReporting Bodies

Corporate Officer in Charge of
Risk Management and Compliance

General Managers of Line andStaff Departments for Functionaland Business Groups

General Managers of and OtherManagement Personnel in
Corporate Group Departments

People Designated by Presidentsof Main Group Companies

General Manager of Internal Audit Office
General Manager of Mitsubishi Estate
Audit Committee Office

Note: Other individuals nominated by the
corporate officer in charge ofcompliance may also participate.

Consultation

Executive
Committee

AdviceRisk Management Promotion Secretariat /Compliance Promotion Secretariat(Mitsubishi Estate Legal & Compliance Department)

Risk Evaluation Process for Individual Projects
Business Groups

Strategic Investment Committee

Executive Committee

Verification of individual
investment projects[Role]
Discussion on and verification of theappropriateness of important investment projects[Role]
Investment decisions regarding important projects• Verification of consistency
with strategies of each business group• Verification of economic
viability

Risk Management Activities

1

2

Risk Management Activities of Each Individual Business andFunctional Group and Group Company

Identification and Monitoring of Key Risks That Need ParticularAttention from the Group

Individual Group companies and functional and business groups
identify important risks based on a risk analysis and carry out activities throughout the year to reduce the risks identified. In addition, thegeneral managers of each functional and business group ascertain
the status of risk management activities of different business companies under the jurisdiction of each business and functional groupand provide coordination and support.

To accurately grasp the risks facing the Group as a whole, and by
selecting and mapping key risks that require measures to be taken,
the risks that must be addressed and their level of priority arebrought to light. While monitoring risks throughout the year, particularly key risks, support is provided as necessary.

Scenarios anticipated by business units

Preparation of the responsible business group’s
anticipated scenarios with
important investment projects and submission
thereof to the Strategic
Investment Committee

Presentation of scenarios anticipatedby business units with major­investment projects

Verification of the responsible business group’s anticipated scenarios• Verification of consistency with
Companywide strategies• Verification of consistency with business group strategies• Verification of economic viability• Verification of appropriateness ofassumptions (such as rents andconstruction costs)

Strategic Investment Office• Information gathering andanalysis for investment
strategy planning• Preparation and use of investment decision rules

Verification of importantinvestment projects• Verification of consistency
with Companywide strategies• Verification of consistency
with business group
strategies• Verification of economic
viability

Where necessary, the Strategic
Investment Office prepares separate
anticipated scenarios and submits
them to the Executive Committee.
Jurisdiction

Anticipation of scenarios byStrategic Investment Office

Sharing of visualized risks and areas of concern for business viability

92

93

Financial Section

Risk Management

Japan’s Real Estate Market
Dealing with Major Risks Below are some examples of major risks that have come to light in the Mitsubishi Estate Group through risk m­ anagement
activities and various business activities and countermeasures that have been taken.

Supply of New Large-Scale Office Buildings* in the 23 Wards of Tokyo
Million m2
2.0

Risks

Annual average floor area until 2021:
1,040,000 m2/year

Countermeasures

Annual average floor area from 2022:
880,000 m2/year

In 2021, the supply of new large-scale office buildings in Tokyo’s
23 wards by floor area contracted substantially, declining
approximately 70.0% year on year, to 610,000 m². While a certain
level of supply volume is expected in 2023 and 2025, the annual
average supply volume for the next five years (2022 to 2026) is
forecast to fall below past annual average levels.
In contrast, with the average supply volume per property
trending upward, offices are projected to continue growing inscale accordingly.

1.5

Risks of Natural and
Man-Made Disasters,
etc.

As natural disasters, such as typhoons, have increased in frequency in recent years, social interest has grown in the way
companies respond when such events occur. Amid such circumstances, in the unlikely event of shortcomings in a
response deemed appropriate by the Group, safety management, reputational, and other risks could emerge, which might
affect the Group’s business promotion and performance.

Through its promotion of urban redevelopment projects, theGroup has put in place advanced disaster-management
functions and employed disaster countermeasures througharea management.

In FY2022, the COVID-19 pandemic had a particularly
adverse impact on the Group’s hotel, retail facility, and airport operation businesses. In FY2023, the pandemic may
continue to adversely impact the Group’s business promotion and performance, primarily in these businesses.

The Group plans to put in place a system that is resilient tofluctuations in business performance and in market conditions by accurately understanding circumstances concerning
the spread of the COVID-19 pandemic, government policies,
and other relevant information in a timely manner and by
adjusting investment and development plans in line withbusiness performance and market conditions.

1.0

0.61
0.5

0

Risks of a
Deterioration in Real
Estate Market
Conditions

The Group’s performance may be adversely affected if realestate market conditions were to deteriorate in accordancewith an economic downturn caused by domestic and overseas factors. In such circumstances, the Group would needto pay particular attention to the progress of occupancy
rates in the Tokyo office leasing market and to multi-use
development, redevelopment, and other plans, as these
entail large-scale investments over long-term development
time frames.

2018

2019

2020

2021

2022

2023

2024
2025
(Estimate)

Office Building Market (Average Rents / Vacancy Rates inFive Central Tokyo Metropolitan Wards)
Yen / tsubo-month%

25,00010

20,36620,000The basic policy of the Group is to conclude relatively longterm lease contracts with customers in its office building
leasing business. The resultant prospect of stable lease revenues mitigates to a certain degree the risk of sharp economic fluctuations.

CY

2026

Source: Mori Building Co., Ltd.

8

6.37

15,000

6

10,000

4

5,000

2

0

0

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Risks of Substantial
Rises in Material
PricesRisks of Fluctuations
in Exchange Rates

Risks of Increases inInterest Rates

If material prices rose in conjunction with a steep increase in
raw material and crude-oil prices due to domestic and overseas factors, the Group may not necessarily be able to offset
this through increased sales prices and rental fees in its realestate development business, which may have an adverse
effect on performance.

The Group implements cost control measures, such as theearly placement of construction material orders, and will
monitor trends in material prices in a timely manner going
forward while adopting a multifaceted response that encompasses adjusting investment and development plans andconsulting with its partners.

The Group’s business operations are affected by fluctuations
in exchange rates. Appreciation of the yen reduces the yen
conversion amount in foreign currency-denominated transactions. In addition, a portion of the Group’s assets and liabilities
are converted into Japanese yen for the preparation of consolidated financial statements. Accordingly, even if there was nochange in the value of said assets and liabilities in local currency terms, their value may be affected after yen conversion.

The Group strives to minimize risks of fluctuations in
exchange rates through such efforts as procuring funds inthe relevant foreign currency when acquiring foreign currency-denominated assets.

The Bank of Japan (BOJ) has implemented a policy of quantitative and qualitative monetary easing with yield curve control in response to the credit crunch in financial markets andthe slowdown in the global economy. However, a rise ininterest rates due to a change in the BOJ’s policy or a deterioration in the demand–supply balance for Japanese government bonds (JGBs) caused by growth in the issuance of JGBs
may negatively affect the performance, financial position, orother aspects of the Group’s business.

The Group hedges interest rate risk on a portion of its variable interest rate financing through interest rate swaps toconvert its interest rate payments into fixed payments. The
Group plans to continue procuring funds in consideration of
the balance between outstanding borrowings and corporate
bonds with fixed and variable interest rates.

The Group’s performance could be affected in the unlikely
event of external leaks of confidential information or thematerialization of system risks due to unforeseen circumstances, such as information security incidents resulting
from cyberattacks, computer viruses, or the like

The Group has established regulations in relation to information management, based on which it implements a rigorous
information management system, and complies appropriately with revisions to laws, such as the Act on the Protectionof Personal Information. Moreover, in order to raise the IT
security level Groupwide, the Group has positioned its DX
Promotion Department at the center of efforts to standardize
its IT systems and make them more secure. The Group isalso enhancing collaboration among DX Promotion
Department IT security personnel and between the department and external security companies, thereby providing
Groupwide support.

13/3

94

14/3

Average rents

15/3

16/3

17/3

18/3

19/3

Vacancy rates (right scale) 

20/3

21/3

22/3

Source: Miki Shoji Co., Ltd.

Supply of New Condominiums in the Tokyo Metropolitan Area /Average Condominium Prices
Units Millions of yen

80,00080

62.60

60,00060

40,00040

33,63620,000In the housing market, the supply of condominiums in the Tokyo
metropolitan area in 2021 increased for the first time in three
years, rising 23.5% year on year, to 33,636 units, partly reflecting
a rebound from the slump in supply in 2020 due to the COVID-19
pandemic. Meanwhile, the average price of condominiums in theTokyo metropolitan area rose 2.9% year on year, to ¥62.60 million.

20

0

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

CY

Sales of new condominiums in the Tokyo metropolitan area
Condominium prices (right scale)
Source: Real Estate Economic Institute Co., Ltd.

Expected Capitalization Rate by Type of Property in the Tokyo Area%
7.0

Economy hotels for lodging in Tokyo

6.0

Information Security
Risks, Such as
Cyberattacks,
Including Leaks of
Personal Information

In the office building market, vacancy rates as of March 2022 in
the five central Tokyo metropolitan wards (Minato-ku, Chiyoda-ku,
Chuo-ku, Shinjuku-ku, and Shibuya-ku) stood at 6.37%, exceeding
6.0% for the first time since March 2014, partly reflecting theimpact of office consolidations and contract cancellations due tothe spread of COVID-19. Average rents came to ¥20,366 pertsubo, down ¥1,175 year on year.

Financial Section

Corporate Governance

Risks Related to the
COVID-19 Pandemic

2017

* Buildings with a standard floor area of 10,000 m2 and above

Shopping centers on the outskirts of Tokyo

5.3

5.0

4.6
4.0

4.0
4.0

Residential properties
for standard studios in
3.0 southern Tokyo

0

3.3

A-Grade office buildings* in the
Marunouchi and Otemachi areas
2013

2014

2015

2016

2017

Multiple-tenant-type warehouse properties
in Tokyo (Koto District)
2018

2019

2020

2021

Despite growing uncertainty in relation to the global geopoliticalsituation, the investment stance of real estate investors toward
prime properties in Japan remained positive, underpinned by the
Bank of Japan’s monetary easing policy. The expected return(capitalization rate) declined from the previous year for many
asset types and in many areas, with the capitalization rate for
A-grade office buildings in the Marunouchi and Otemachi areas
standing at 3.3% as of April 1, 2022.

2022

As of April 1 each year
* Covers properties within five minutes’ walk from thenearest station and with floor areas of at least 50,000 m2

Source: Japan Real Estate Institute95

Eleven-Year Summary of Selected Financial Data (Consolidated)
Years ended March 31

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Operating revenue¥1,013,069¥  927,157¥1,075,285¥1,110,259¥1,009,408¥1,125,405¥1,194,049¥1,263,283¥1,302,196¥1,207,594¥1,349,489

Operating profit

146,299

118,349

161,271

156,332

166,199

192,495

213,047

229,178

240,768

224,394

278,977

Ordinary profit

120,665

92,381

139,638

133,113

144,851

169,851

190,506

206,587

219,572

210,965

253,710

Profit attributable to owners of parent

56,51245,50764,29773,33883,426102,681

120,443

134,608

148,451

135,655

155,171¥4,387,015¥4,711,521¥4,765,368¥4,901,526¥5,311,840¥5,484,115¥5,801,450¥5,774,193¥5,858,236¥6,072,519¥6,493,917

Total equity*

1,256,791

1,239,547

1,329,057

1,495,838

1,509,680

1,592,777

1,698,348

1,770,643

1,734,462

1,851,899

2,003,225

Interest-bearing debt

1,716,890

2,085,417

1,973,042

1,929,355

2,291,038

2,396,994

2,481,675

2,319,597

2,429,883

2,526,142

2,738,632

Capital expenditures

282,171

208,135

159,677

177,331

275,316

275,372

289,570

285,089

331,857

319,841

329,115

Depreciation and amortization

67,46573,36474,80572,696

74,24575,97477,54580,336

84,941

89,107

91,581

Cash flows from operating activities¥  203,243¥  122,286¥  336,489¥  200,078¥  135,821¥  168,527¥  293,338¥  345,954¥  341,766¥  207,414¥  280,090

Cash flows from investing activities(272,009)(217,992)(133,537)(46,568)(231,003)(327,292)(286,841)(271,083)(277,440)(297,303)(313,778)

Cash flows from financing activities

57,18927,150(177,514)(189,109)309,237(4,921)

37,203(192,473)(28,886)

50,42590,973

Cash and cash equivalents at the end of year

215,771

191,837

224,739

198,489

412,392

243,341

286,859

179,308

213,008

172,307234,244¥    40.72¥    32.79¥    46.34¥    52.85¥    60.13¥    74.00¥    86.78¥    96.97¥   108.64¥   101.34¥   116.45

12

12

12

14

16

20

26

30

33

31

36

¥  240,998¥  224,701¥  279,310

Financial Results (Millions of yen)

Financial Position (Millions of yen)
Total assets
1

Financial Section

Cash Flows (Millions of yen)

Per-Share Amounts (Yen)
Earnings
Cash dividends
Principal Financial Indicators
Business profit*2 (Millions of yen)
EBITDA* (Millions of yen)

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

3

ROA*4

¥  222,885¥  200,587¥  246,332¥  239,934¥  252,034¥  279,718¥  302,424¥  320,641

336,784

331,821381,434

3.4%

2.6%

3.4%

3.2%

3.3%

3.6%

3.8%

4.0%

4.1%

3.8%

4.4%

6.5

5.0

7.5

7.7

8.5

8.7

9.5

10.1

11.3

11.2

13.9

ROE

4.6%

3.6%

5.0%

5.2%

5.6%

6.6%

7.3%

7.8%

8.5%

7.6%

8.1%

Payout ratio

29.5%

36.6%

25.9%

26.5%

26.6%

27.0%

30.0%

30.9%

30.4%

30.6%

30.9%

Stock price*6 (Yen)¥    1,476¥    2,596¥    2,446¥    2,787¥  2,090.5¥    2,030¥  1,798.5¥  2,005.5¥    1,595¥  1,932.5¥    1,819

Number of shares issued and outstanding (Thousands of shares)

1,390,397

1,390,397

1,390,397

1,390,397

1,390,397

1,390,685

1,390,908

1,391,038

1,391,174

1,391,328

1,391,478

Interest coverage ratio* (Times)
5

Stock Information

5,000

Mitsubishi Estate’s Stock
Price Changes on theTokyo Stock Exchange

Yen
4,000

3,000

2,000

1,000

0
2011/3

2012/3

2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/3*1 Total equity is calculated by deducting non-controlling interests and stock acquisition rights from total net assets.
*2 Business profit is calculated as operating profit + equity in earnings of unconsolidated subsidiaries and affiliates.
*3 EBITDA is calculated as the sum total of operating profit, interest and dividend income, equity in earnings of unconsolidated subsidiaries and affiliates, depreciation and amortization, and goodwill.
*4 ROA was calculated as operating profit ÷ total assets (average of the amount at the beginning and end of the fiscal period) until FY2019. However, since FY2020 ROA has been calculated as business profit ÷ total assets(average of the amount at the beginning and end of the fiscal period).
*5 The interest coverage ratio (ICR) is calculated by dividing the sum total of operating profit, interest and dividend income, and equity in earnings of unconsolidated subsidiaries and affiliates by the sum totalof interest expenses and commercial paper interest.
*6 As of the last trading day in March

96

97

Selected Financial Data
Consolidated Balance Sheets
Mitsubishi Estate Co., Ltd. and Consolidated Subsidiaries
March 31, 2022 and 2021


2022

2021

Assets6,493,917

6,072,519

421,398

Liabilities

Total current assets

1,356,789

1,164,037

192,752

Total current liabilities

Cash and deposits

233,117

170,040

63,077

Trade notes and accounts receivable, and contract assets

60,64552,031

Securities

4,280

Real estate for sale
Real estate for sale in process

Financial Section

Millions of yen

2022

2021

Increase or
Decrease

4,257,484

4,011,071

246,413

631,043

662,437(31,394)

Trade notes and accounts payable

60,51660,507

9

8,613

Short-term borrowings

182,052

141,785

40,266

4,626

(346)

Current portion of long-term borrowings

79,928

127,643(47,714)

41,23988,116(46,876)

Commercial paper—

50,000(50,000)

299,532

267,563

31,968Current portion of bonds payable

90,00065,00025,000

724

975

(250)

Income taxes payable

29,44524,457

4,987

Costs on construction contracts in progress

4,316

7,144

(2,828)Other current liabilities

189,099

193,043(3,943)

Other inventories

1,575

1,034

541

Total non-current liabilities

3,626,441

3,348,634

277,807

Equity investments

624,521496,182

128,339786,335

745,759

40,576

Other current assets

(422)

(553)

130

1,598,562

1,393,858

204,70387,26076,875

10,384

Leasehold and guarantee deposits received

451,749

466,891(15,142)

Deferred tax liabilities

274,176

243,818

30,358

Total non-current assets

5,137,127

4,908,481

228,645

Deferred tax liabilities for land revaluation

264,082

264,082—

Total property, plant and equipment

4,345,989

4,179,893

166,096

Retirement benefit liability

27,402

27,123278

Buildings and structures, net

1,230,513

1,178,764

51,748Provision for retirement benefits for directors (and other officers)

464

662

(197)

31,20830,460748

Provision for environmental measures

888

4,537

(3,648)2,310,551

2,237,934

72,617

Negative goodwill

85,526

83,604

1,922

Land in trust

585,470

578,446

7,024

Other non-current liabilities

137,252

118,294

18,957

Construction in progress

169,700

136,273

33,426

Net assets

2,236,432

2,061,447

174,984

Other, net

18,54518,013531

Total shareholders' equity

1,335,024

1,259,887

75,137108,092

101,095

6,997

Share capital

142,414142,279

135

Leasehold interests in land

82,541

76,193

6,347

Capital surplus

159,749

164,367(4,617)

Other intangible assets

25,55024,901649

Retained earnings

1,165,344

1,058,457

106,887

Treasury shares(132,483)(105,216)(27,267)

683,045

627,493

55,551

668,200

592,01176,189299,617

281,996

17,620130,841

118,088

12,753

2,324

11,661(9,337)103(1,916)2,020

Leasehold and guarantee deposits

140,230

136,478

3,751

526,417

526,417—Retirement benefit asset

45,99834,37011,628Foreign currency translation adjustment

2,162(53,740)

55,902

Deferred tax assets

25,887

16,536

9,350

Remeasurements of defined benefit plans

8,675

3,163

5,512

Other investments

169,535

146,455

23,080Share acquisition rights

201

231

(30)

(548)

(6)

(542)

Non-controlling interests

233,005

209,316

23,6896,493,917

6,072,519

421,398

6,493,917

6,072,519

421,398

Allowance for doubtful accounts

Machinery, equipment and vehicles, net
Land

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022



Increase or
Decrease

Real estate for development

Total intangible assets

Total investments and other assets
Investment securities
Long-term loans receivable

Allowance for doubtful accounts
Total assets
Note: Amounts of less than one million yen have been truncated.

98

Millions of yen

Bonds payable
Long-term borrowings

Total accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

Total liabilities and net assets
Note: Amounts of less than one million yen have been truncated.

99

Consolidated Statements of Income

Consolidated Statements of Cash Flows (Summary)

Mitsubishi Estate Co., Ltd. and Consolidated Subsidiaries
Years Ended March 31, 2022 and 2021

Mitsubishi Estate Co., Ltd. and Consolidated Subsidiaries
Years Ended March 31, 2022 and 2021

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Financial Section

Millions of yen

Operating revenue
Operating costs
Operating gross profit
Selling, general and administrative expenses
Operating profit
Total non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Contribution for construction
Other
Total non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Ordinary profit
Total extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Reversal of provision for environmental measures
Total extraordinary losses
Loss related to retirement of non-current assets
Impairment losses
Loss on liquidation of subsidiaries
Loss on infectious disease
Profit before income taxes
Total income taxes
Income taxes—current
Income taxes—deferred
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

2022

2021

1,349,489
974,724
374,765
95,787
278,977
16,319
800
7,197
332
1,455
6,532
41,586
20,742
12,404
8,438
253,710
20,189
6,781
7,987
1,843
3,576
20,120
16,254
3,866——
253,779
70,88960,331
10,558
182,889
27,718155,171

1,207,594
889,830
317,764
93,370224,394
26,292871
16,095307—
9,018
39,72021,623
6,448
11,648210,965
16,603
13,582
3,021——
26,3042,099
4,679
13,826
5,698
201,265
54,19544,647
9,548
147,069
11,414
135,655

Millions of yen

Profit before income taxes

2022

2021

253,779

201,265

Adjustment for extraordinary income or loss

7,349

10,935

Depreciation

91,581

89,107

Decrease (increase) in inventories

116,993

56,443

Decrease (increase) in equity investments(30,267)(21,048)

Other(107,139)(71,888)

Income taxes paid

(52,206)(57,400)

280,090

207,414

Net cash provided by (used in) operating activities
Proceeds from sale and redemption of investment securities

9,562

14,186

Proceeds from sale of property, plant and equipment

14,57030,403(329,115)(319,841)(8,795)(22,051)(313,778)(297,303)

Capital investment
Other
Net cash provided by (used in) investing activities
Newly acquired funds

390,678

437,155

Repayment(183,951)(365,441)

Cash dividends paid

(58,249)(51,153)

Net decrease (increase) in treasury shares(29,861)

(23)

Other

(27,641)

29,888Net cash provided by (used in) financing activities

90,97350,425

Effect of exchange rate change on cash and cash equivalents

4,651(1,237)

Net increase (decrease) in cash and cash equivalents

61,937(40,701)

Cash and cash equivalents at beginning of period

172,307

213,008

Cash and cash equivalents at end of period

234,244

172,307

Note: Amounts of less than one million yen have been truncated.

Note: Amounts of less than one million yen have been truncated.

To see the consolidated financial statements in full, please refer to the Company’s website.
https://www.mec.co.jp/e/investor/irlibrary/materials/index.html

Consolidated Statements of Comprehensive Income
Mitsubishi Estate Co., Ltd. and Consolidated Subsidiaries
Years Ended March 31, 2022 and 2021
Millions of yen

ProfitTotal other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity
methodComprehensive income
Comprehensive income attributable toowners of parent
non-controlling interests

2022

2021

182,889
79,71512,754
1,508—
59,5885,519

147,069
20,09738,566352(44)(26,143)
7,309

344

57

262,605

167,166

231,360
31,244

157,093
10,073

Note: Amounts of less than one million yen have been truncated.

100

101

Matters Related to Rental Properties

Status of Shareholdings

Mitsubishi Estate and certain of its consolidated subsidiaries own

The following table shows the profit and loss from rental

Stocks held for purposes other than pure investment, theoffice buildings and retail facilities in Tokyo and other major

properties and other real estate that includes portions used as

number of shares, and their total value as of March 31, 2022,

cities in Japan as well as overseas, with the aim of obtaining

investment and rental properties.

recorded on the balance sheet are as follows.


rental revenue from these buildings and facilities. Because
certain leased office buildings among these in Japan are usedby the Company or some of its consolidated subsidiaries, theCompany has classified such buildings as rental properties(April 1, 2021, to
March 31, 2022)(April 1, 2020, to
March 31, 2021)

475,309

The following table shows the year-end amounts, changes in

Rental costs

329,374

304,405

these amounts during the period under review, and the market

Difference

174,363

170,903value and unrealized gains of investment and rental properties

Other income (loss)(17,577)5,622



Financial Section

Fiscal Year Ended
March 31, 2021

503,737

properties containing self-use space.

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Fiscal Year Ended
March 31, 2022

Rental revenue

and other real estate that includes rental properties and rental

Fiscal Year Ended
March 31, 2021

(April 1, 2021, to
March 31, 2022)(April 1, 2020, to
March 31, 2021)

Rental Properties
Amounts recorded on the consolidated balance sheets
Balance as of the
beginning of the period

3,565,590

3,502,759

Increase (decrease) during
the period

160,21462,830

Balance as of the endof the period

3,725,804

3,565,590

Market value as of the endof the period

7,924,196

7,441,369

Unrealized gains

4,198,392

3,875,779

Rental revenue

44,552

Rental costs

34,562Difference
Other income (loss)

545,404

Increase (decrease) during
the period(4,079)Balance as of the endof the period

541,325

Market value as of the endof the period

916,224

Unrealized gains

374,899

SHIMADZU CORPORATION

233,476988

1*

Nippon Yusen Kabushiki Kaisha

86,121926

1*Mitsubishi Gas Chemical Company, Inc.

431,405

897

1*

KUBOTA Corporation

359,000

826

4*

THE SHIZUOKA BANK, LTD.

886,750765

6*NIPPON EXPRESS HOLDINGS, INC.*

89,483753

4*Information on the number of shares for each company andUzabase, Inc.

657,400705

5*amounts shown on the balance sheet for specific investment

TOKAI CARBON CO., LTD.

588,250

677

1*

shares and deemed holdings of equity shares are as follows.

NOHMI BOSAI LTD.

345,000

674

1*

2,340,000

599

6*

138,150524

1*

1,509,000

505

6*

RENAISSANCE INCORPORATED

472,300466

4*

Number ofsharesTotal amount bookedon balance sheet(¥ million)

Unlisted Shares

100

7,868

Shares Other Than Unlisted Shares

63

244,238

Mebuki Financial Group, Inc.

43,6399,349

Mitsubishi Corporation

13,088,457

60,2191*

Matsuya Co., Ltd.

545,300

418

3*(2,026)

Mitsubishi UFJ Financial Group, Inc.

27,821,042

21,152

2*

Tokyo Kaikan Co., Ltd.

131,140388

3*

AGC Inc.

3,598,006

17,648

1*

P.S. Mitsubishi Construction Co., Ltd.

496,000

290

1*

Japan Airport Terminal Co., Ltd.

3,111,400

17,392

1*

Kodensha Co., Ltd.

58,500273

1*

HEIWA REAL ESTATE CO., LTD.

4,274,100

16,904

5*

GS Yuasa Corporation

73,670172

1*Mitsubishi Logistics Corporation

3,665,554

11,143

4*

Concordia Financial Group, Ltd.

320,000

146

6*

Mitsubishi Heavy Industries, Ltd.

2,346,997

9,434

1*

Mitsubishi Kakoki Kaisha, Ltd.

66,586133

4*

Taisei Corporation

2,426,690

8,578

1*

The 77 Bank, Ltd.

70,687109

6*

Mitsubishi Electric Corporation

5,577,294

7,863

1*

Kyushu Financial Group, Inc.

256,410102

6*TOYOTA MOTOR CORPORATION

2,992,310

6,650

1*

NANTO BANK, LTD.

50,44099

6*East Japan Railway Company

857,300

6,095

1*

HOTEL NEWGRAND CO., LTD.

24,20095

4*Central Japan Railway Company

367,900

5,873

1*

Nikki Co., Ltd.

49,30092

5*

Shin-Etsu Chemical Co., Ltd.

308,212

5,791

1*

Slogan Inc.

43,10586

5*NIKON CORPORATION

3,510,000

4,612

4*

Kirin Holdings Company, Limited

2,065,438

3,777

1*

794,100

3,680

3*

1* To contribute to raising corporate value by maintaining and strengthening good relationships withtenants, principally in the Commercial Property Business Group
2* To contribute to raising corporate value by maintaining and strengthening good relationships,
principally for financing and in the Commercial Property Business Group
3* To contribute to raising corporate value by maintaining and strengthening collaborative relationships,
principally in the Commercial Property Business Group
4* To contribute to raising corporate value by maintaining and strengthening good relationships inbusinesses across the entire Group
5* To contribute to raising corporate value through business partnerships and joint businesses
6* Principally to contribute to stable financing

Times

Yen

10

120

2.0

8

1.5

6.6 6
6.2

1.0

116.45

100
80

4
40

545,580(176)
545,404
919,848
374,444

Notes: 1.	The amounts included on the consolidated balance sheets presented in the table above
are equal to the total acquisition prices for applicable properties or real estate less theaggregate amounts of depreciation and impairment loss for these properties or real estate.
2. Fair values as of the end of each consolidated fiscal year are as follows:		 (1) The fair values of domestic properties and real estate have been calculated by
Mitsubishi Estate, based mainly on the Japanese Real Estate Appraisal Standards.
		 (2) The fair values of overseas properties and real estate have been calculated mostly by
local appraisers.

0.5

2

0

0

20
0

2018 2019 2020 2021 2022

Net interest-bearing debt
Net interest-bearing debt
(after hybrid debt deductions*)
Net interest-bearing debt / EBITDA(right scale)Net interest-bearing debt / EBITDA(after hybrid debt deductions*) (right scale)* The subordinated bonds and subordinatedloans subject to equity credit from a credit
rating agency (50% equity treatment) are
shown after deductions.

2018 2019 2020 2021 2022

TOHO CO., LTD.
Mitsubishi Materials Corporation

1,217,400

2,608

1*

Unrealized Gain on Rental
Properties

Mitsubishi Chemical Holdings Corporation

2,823,000

2,306

1*

Trillions of yen

PIA Corporation

680,200

2,248

5*

Obayashi Corporation

2,404,961

2,164

3*

Mitsubishi HC Capital Inc.

3,760,000

2,143

1*

SHIMIZU CORPORATION

2,738,650

2,012

3*

Tokio Marine Holdings, Inc.

6,929,500

49,393

7*

Odakyu Electric Railway Co., Ltd.

901,000

1,835

3*

Mitsubishi Electric Corporation

10,656,000

15,024

7*

Mitsubishi Research Institute, Inc.

447,500

1,790

4*

Mitsubishi UFJ Financial Group, Inc.

4,306,400

3,274

7*

Nippon Suisan Kaisha, Ltd.

2,789,900

1,528

1*

MITSUBISHI MOTORS CORPORATION

700,000

231

7*

Fukuoka Financial Group, Inc.

621,600

1,475

6*

Seino Holdings Co., Ltd.

1,275,900

1,421

5*

THE HACHIJUNI BANK, LTD.

3,441,500

1,400

6*

Chiba Bank, Ltd.

1,852,000

1,342

6*

7* To maintain authority to exercise voting rights
Note: With regard to the largest shares in terms of the amounts recorded on the balance sheet,specific investment shares and deemed holdings of equity shares for investment purposes
are not included in aggregate totals.
* Although NIPPON EXPRESS CO., LTD., delisted its stock from public trading on December 29,
2021, Mitsubishi Estate has received an allocation of shares in NIPPON EXPRESS HOLDINGS, INC.,
as a result of a share transfer on January 4, 2022.

5.0

4.0

3.0

Deemed Holdings of Equity SharesCompany

Number ofsharesAmount booked Purposeon balance sheet of holding(¥ million)
shares2.0

1.00
2018 2019 2020 2021 2022

Years ended March 31

102

THE HYAKUGO BANK, LTD.

(777)

Trillions of yen
2.5

Purposeof holding
shares9,990

Earnings per Sharenet hghbri

SHINAGAWA REFRACTORIES CO., LTD.

Company

Net Interest-Bearing Debt /EBITDAnet

Number ofsharesAmountbooked onbalancesheet(¥ million)

34,289Note: Real estate that includes portions used as investment and rental properties has portions thatare used by Mitsubishi Estate and certain of its consolidated subsidiaries for the purpose ofproviding related services and conducting operation management. Accordingly, rental
revenue associated with these portions has been excluded. Costs associated with applicableproperties and real estate, such as depreciation costs, building management costs, andtaxes, have been included in rental costs.

Amounts recorded on the consolidated balance sheets
Balance as of the
beginning of the period

6*

Rental Properties Containing Self-Use Space

60

Rental Properties Containing Self-Use Space

1,248

Specific Investment Shares

Millions of yen

Fiscal Year Ended
March 31, 2022

746,900

Millions of yen

Rental Properties

containing self-use space.

T&D Holdings, Inc.

103

Targets and Results of the Key Themes and Major Initiatives Laid Out in
Mitsubishi Estate Group 2030 Goals for the SDGs
ThemesBenchmarks

Numerical Targets

FY2021 Results

FY2022 / Major Initiatives

Greenhouse gas emissions, such as CO2

GHG emissions (Scope 1 + Scope 2 + Scope 3) for the entire Group
compared with FY2020• Reduce the total of Scope 1 and Scope 2 emissions by at least 70% and Scope 3
emissions by at least 50% by FY2031• Achieve net-zero emissions for Scope 1, Scope 2, and Scope 3 by 2050 (Certified by the
Science Based Targets (SBT) initiative in June 2022)

3,533,468 t-CO2

2,534 thousand t-CO2• Resolved to switch all electricity used at 27 buildings centered on the Otemachi,
Marunouchi, and Yurakucho areas to electricity from renewable energy sources
beginning in FY2022

Percentage of power from renewable energy sources• 100% by FY2026(Joined RE100 in January 2020)

3.1%

31%
• Resolved to switch all electricity used at 27 buildings centered on the Otemachi,
Marunouchi, and Yurakucho areas to electricity from renewable energy sources
beginning in FY2022

Waste disposal amount per m2

20% reduction by 2030, compared with FY2020

Waste recycling rate

90% by 2030

60.5%

Percentage of female managers

Over 20% by FY2031, 30% by FY2041, and 40% by FY2051

Climate Change

Environment

Financial Section

Waste

Diversity

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Human Rights

Health andProductivity
Management

Innovation• Improve each retail facility tenant’s awareness of weighing, reducing, and separating garbage• Continuously improve garbage separation at the Mitsubishi Estate Head Office and strengthen
calls for tenants to also improve garbage separation• Began Circular City Marunouchi, an initiative focusing on resource recycling in the
Marunouchi area. The first phase of the initiative saw the launch of the MARUNOUCHI TO GO
Project, an activity for taking home leftover food as part of measures to reduce food loss.
To promote the project, the Company distributed paper bags and containers to participating
restaurants for taking home leftover food. The second phase will see the promotion of Bottle
to Bottle, an activity for recycling plastic bottles. In this activity, plastic bottles disposed of
at 24 buildings in the Marunouchi area will be recycled as new plastic bottles.

5.8%

6.6% (as of April 1, 2021)• Raised the percentage of female employees accounted for by assistantmanager-level employees who can be candidates for management positions

In addition to continuing to pursue the initiatives described on the left, plan to implement a survey
and introduce measures to promote gender diversity

Mitsubishi Estate Co., Ltd.*4

Beyond continuing to pursue the initiatives described on the left, continue to improve the­disclosure of information on the active roles of and working environments for women

Mitsubishi Estate Co., Ltd.

Mitsubishi Estate Group*2

37.8%

Percentage of female employees among
mid-career hires

40% every fiscal year

19.4%

24.4%
Implemented the following initiatives to raise the percentage of women among
mid-career hires at the application stage:• Held roundtable discussions with women• Organized seminars for women with female speakers

Beyond continuing to pursue the initiatives described on the left, continue to improve the­ isclosure of information on the active roles of and working environments for womend

Mitsubishi Estate Co., Ltd.

64.9%

75.5%
• Disclosed the percentage of male employees taking childcare leave• Encouraged the taking of childcare leave (periodically issued literature on taking
childcare leave to male employees with newborns while encouraging employees
who had yet to take childcare leave to discuss doing so with their superiors)• Facilitated roundtable discussions among male employees with experience oftaking childcare leave (held roundtable discussions with male employees who havetaken childcare leave to share their experiences with fellow Company employees)• Create and promote awareness of a handbook on pre- and post-childbirth leave andchildcare leave summarizing childcare and other types of leave of absence andprocedures for leave takers to follow

In addition to the continuing the initiatives described on the left, plan to implement the­following initiatives• Monitor the ratio of male employees taking childcare leave (contact male employees who
have not taken childcare leave for more than a certain period after the birth of their child andconfirm their intentions and other relevant information)

Mitsubishi Estate Co., Ltd.*5

100.0%

98.7%• Provided a handbook offering support regarding pregnancy, childbirth, andreinstatement to work
• Carried out consultation sessions• Held platforms (such as roundtable discussions and lectures) offering information
helpful to achieving a work–life balance and developing a career• Carried out interviews for employees with their department and with the Human
Resources Department when they are reinstated to work following childcare leave• Set up a working group for promoting the active participation of women in the workplace thatwill hold events and other activities in relation to creating networks and navigating life events• Continue to pursue the initiatives described on the left

Five Mitsubishi Estate Group
companies*3

94.8%

100%
• Held platforms (such as roundtable discussions and lectures) offering information
helpful to achieving a work–life balance and developing a career• Carried out interviews for employees with their department and with the Human
Resources Department when they are reinstated to work following childcare/maternity leave

Continue to pursue the initiatives described on the left

Five Mitsubishi Estate Group
companies*3—

Please refer to page 66 for details.
• Confirmed the level of compliance in every Mitsubishi Estate project• Mitsubishi Estate Residence Co., Ltd., established a scheme for obtaining Forest
Stewardship Council (FSC) certification and disclosed it to other companies in
the industry• Continue to check and implement the operation described on the left

Mitsubishi Estate Group

Rate of use of male employees taking
childcare leave of absenceOver 75% by FY2026 and 100% by FY2031

100% every year through FY2031

Rate of reinstatement to work after childcare/maternity
leave

100% every year through FY2031

Rate of use of wood equivalent to that in the Sustainable
Sourcing Code*1 (Certified Wood and Domestically
Produced Wood)

100% by FY2031

Percentage of employees in the high-risk group for
metabolic syndrome (those aged 40 or older)* ercentage of individuals whose results in their regular*P
health checkup for any of the categories affecting thedetermination of lifestyle diseases reached or exceeded
the level at which medical attention is recommended• 25.6% by FY2026• 14.6% by FY2031(Approximately 60% improvement compared with the percentage in FY2020, equivalent
to the national average)

39.5%

42.3%
• Held an event to facilitate exercise habits(body improvement contest)• Recommend that those in the high-risk group participate in a program to help prevent
aggravation (guidance on lifestyle habits) offered by the Health Insurance Association• Create and promote awareness of a handbook summarizing health promotion programs

Mitsubishi Estate Co., Ltd.*6

Percentage of employees in the healthy group (those
aged 40 or older)** Percentage of individuals whose results in their regular
health checkup for all of the categories affecting the determination of lifestyle diseases were within normal levels• 20.85% by FY2026• 32.8% by FY2031(Approximately 370% improvement compared with the percentage in FY2020, equivalent
to the national average)

10.1%

9.9%
• Held an event to facilitate exercise habits (body improvement contest)• Recommended participation in a specific health guidance
program implemented by the Health Insurance Association• Recommend participation in a specific health guidance program (diet program) implemented
by the Health Insurance Association• Create and promote awareness of a handbook summarizing health promotion programs

Mitsubishi Estate Co., Ltd.*6

Cancer screening rate

90% every year from FY2022 through FY2031

80.7%

88.0%
• Formulated Health Management 2030 and determined to add screening for thefive major cancer types to the standard health checkup menu, in order to raise
the percentage of employees undergoing such screening• Add screening recommended by the Ministry of Health, Labour and Welfare for the five major
cancer types to the standard health checkup menu
• Offer company subsidies to cover a portion of the cost of such testing as PET and MRI scansfor employees aged 50 or older to tackle illnesses other than the five major cancer types• Create and promote awareness of a handbook summarizing health promotion programs

Mitsubishi Estate Co., Ltd.*6

Employees with high levels of stress

Maintain at 10% or lower from FY2022 through FY2031(Equivalent national average: 10%)

4.7%

4.0%
• Carried out stress checks and recommended the implementation of interviews
with specialists such as clinical psychologists for those with high levels ofstress• Established a system for online counseling by a clinical psychologist as a measure to prevent the spread of COVID-19• Implement regular educational activities for all managers through e-learning programs andother methods in addition to training for newly appointed managers• Carry out stress checks and recommend the implementation of interviews with specialists
such as clinical psychologists for those with continuously high levels of stress• Create and promote awareness of a handbook summarizing health promotion programs

Mitsubishi Estate Co., Ltd.*6

Maximize performance by innovating
business models——

Creation of new
Businesses

Support the creation of new ideas andbusinesses from the perspective of urban development
and contribute to the growth of cities and industries———
Please see page 68 for details.

100% every year through FY2031

63.0%

Implementation of emergency drills—

Implemented

Percentage of buildings designated as shelters forstranded commuters

—

92.3%

*1 Defines standards and operational procedures for ensuring procurement with consideration for sustainability with respect to international agreements and codes of conduct in fields relevant to sustainability*2 Mitsubishi Estate Group: Group companies have been selected based on control criteria. Properties for which the Group’s ownership or share of beneficial interests in trust is less than 50% have been excluded from thescope of calculations.
*3 Five Mitsubishi Estate Group companies: Mitsubishi Estate Co., Ltd., Mitsubishi Jisho Property Management Co., Ltd., Mitsubishi Estate Residence Co., Ltd., Mitsubishi Jisho Sekkei Inc., and Mitsubishi Real Estate Services Co., Ltd.
*4 Scope of targets changed to Mitsubishi Estate in conjunction with their upward revision in FY2022

104

Mitsubishi Estate Group*2

40% every fiscal year

Improvement in
Performance

DisasterPreparedness

Mitsubishi Estate Group*2

Waste emissions: 5.1 kg/m2
Waste recycling rate: 58.4%• Weighed the volume of garbage of each retail tenant by garbage type andstrengthened calls for tenants to reduce and separate their garbage• Improved garbage separation at the Mitsubishi Estate Head Office (installed garbage
stations with reciprocals able to hold 15 types of garbage in exclusive areas)• Participated in verification tests aimed at establishing a resource-recycling
model through the recovery and development into products of plastic

5.0 kg/m2

Relevant SDGs

Mitsubishi Estate Group*2

Percentage of female employees among new-graduate
hires

Percentage of employees with first aid provider
qualifications

Resilience• Plan to introduce electricity from renewable energy sources at all Company-owned officebuildings and retail facilities in the Tokyo metropolitan area and in the city of Yokohama in
FY2023• Actively examine the possibility of introducing renewable electricity at other area facilities

Scope

38.3% (new graduates who joined the Company on April 1, 2021)
Implemented the following initiatives to raise the percentage of women among
new graduates at the application stage:• Held roundtable discussions with women• Organized seminars for women with female speakers

Rate of female employees taking childcare leave ofabsence

Diversity &Inclusion

Initiatives Going Forward

—

72.4%

Taking into account COVID-19 conditions, endeavor to raise the percentage of first aid provider
qualification holders by encouraging employees to undergo training to the extent possible• Implemented emergency drills, taking into account COVID-19 infection risks• Carried out verification tests of Disaster Dashboard Beta, a platform forcommunicating information to stranded commuters during a disaster• Implemented emergency drills involving the drills that had been implemented before thespread of the COVID-19 pandemic• Expanded drills by individual buildings with the aim of improving the effectiveness of thedrills spearheaded by Mitsubishi Estate Property Management taking into account COVID-19
infection risks• Utilized Disaster Dashboard Beta, a platform for communicating information to stranded
commuters——

New*8 and large-scale*9 retailfacilities in Japan100%

Two Mitsubishi Estate Group
companies*7*5 Scope of targets changed to Mitsubishi Estate in FY2023*6 Mitsubishi Estate: Applies to Head Office and branch office employees*7 Two Mitsubishi Estate Group companies: Mitsubishi Estate Co., Ltd., and Mitsubishi Jisho Property Management Co., Ltd.
*8 New: Completed from 2002 onward*9 Large-scale: Floor area of 100,000 m2 and above

105

Corporate Data

Principal Mitsubishi Estate Group Companies
Consolidated subsidiary

Affiliate accounted for by the equity method

Innovation and BusinessTransformation GroupMEC Agri Co., Ltd.*
Medicha Co., Ltd.*
Mitsubishi Jisho IT Solutions Co., Ltd.

Share ofvotingrights (%)

Address

Phone number

Business activities

2270, Hirakawa-cho, Midori-ku, Chiba,
Chiba Prefecture 266-0004
BLUE CINQ POINT Bldg. C-B1, 5-3-18 Minami Aoyama,
Minato-ku, Tokyo 107-0062
13F, Marunouchi Kitaguchi Building, 6-5, Marunouchi
1- chome, Chiyoda-ku, Tokyo 100-0005+81-43-312-6555

Production of agricultural products, sales

90.0+81-3-3287-5519

Meditation and operation of studios

100.0+81-3-3214-9300

Development and management of
information systems and software

100.0

Address

Phone number

Business activities

Mitsubishi Jisho Community Holdings Co., Ltd.

6-1, Sanban-cho, Chiyoda-ku, Tokyo 102-0075+81-3-3556-3888

Mitsubishi Jisho Community Co., Ltd.

6-1, Sanban-cho, Chiyoda-ku, Tokyo 102-0075+81-3-5213-6100

Izumi Park Town Service Co., Ltd.

7-2, Takamori, Izumi-ku, Sendai, Miyagi Prefecture981-3203+81-22-378-0022

Business management and operations
related to the condominium managementbusiness
Overall condominium and building management, renovations, and related
businesses
Comprehensive management of Izumi Park
Town

604-3, Omika, Oyama-cho, Sunto-gun, Shizuoka
Prefecture 410-1308
670 Soshiyama, Uchida, Sakura, Chiba Prefecture
285-0077+81-550-70-3411

Residence Management Business* Outside the scope of consolidation

Commercial Property Business

Higashi-Fuji Green Co., Ltd.

Mitsubishi Jisho Property Management Co., Ltd. Marunouchi Nakadori Building, 2-3, Marunouchi 2-chome, +81-3-3287-4111
Chiyoda-ku, Tokyo 100-0005
Yuden Building Kanri Co., Ltd.
Yurakucho Denki Building, 7-1, Yurakucho 1-chome,+81-3-3211-7833
Chiyoda-ku, Tokyo 100-0006
Nan Shan Plaza Property Management Co., Ltd.* 100-7, Songren Road, Xinyi District, Taipei, 11073, Taiwan +886-2-2723-8009

Comprehensive operation and managementof office buildings and retail facilities
Operation and management of the
Yurakucho Denki Building
Property management of Nanshan Plaza

100.0
62.5
70.0

* Outside the scope of consolidation

Sakura Golf Development Co., Ltd.

MEC Eco LIFE Co., Ltd.
Mitsubishi Jisho House Net Co., Ltd.

Corporate Data

Sunshine City Corporation

World Import Mart Building, Sunshine City, 1-1,
+81-3-3989-3321
Higashi-Ikebukuro 3-chome, Toshima-ku, Tokyo 170-8630

Management of Sunshine City and otherbuildings

63.2

Tokyo Kotsu Kaikan Co., Ltd.

Tokyo Kotsu Kaikan, 10-1, Yurakucho 2-chome,
Chiyoda-ku, Tokyo 100-0006+81-3-3212-2931

Management of Tokyo Kotsu Kaikan andother buildings

50.0

Sanno Grand Building, 14-2, Nagatacho 2-chome,
Chiyoda-ku, Tokyo 100-0014+81-3-3504-0610

Operation and management of building
garages and sale of various gasoline
products

54.9

Cooling and heating supply business in the
Marunouchi, Otemachi, Yurakucho, andother districts
Cooling and heating supply business in the
Higashi-Ikebukuro district
Cooling and heating supply business in the
Osaka OAP district
Cooling and heating supply business in the
Yokohama Minato Mirai district

65.6

Parking Business

Marunouchi Kitaguchi Building, 6-5, Marunouchi 1-chome, +81-3-3287-2288
Chiyoda-ku, Tokyo 100-0005+81-3-3988-6771+81-6-6881-5170+81-45-221-0321

68.0

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

1-1, Heiwajima 6-chome, Ota-ku, Tokyo 143-0006+81-3-3767-2111

Marunouchi Hotel Co., Ltd.

Otemachi Building, 6-1, Otemachi 1-chome, Chiyoda-ku,
Tokyo 100-0004
6-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005+81-3-3211-6180+81-3-3217-1111

The Park Rex Tennoz, 3-15, Higashi-Shinagawa 1-chome,
Shinagawa-ku, Tokyo 140-0002
Shinjuku Front Tower, 21-1, Kita-Shinjuku 2-chome,
Shinjuku-ku, Tokyo 169-0074+81-3-6908-5560+81-995-55-1586

Tsunagu Network Communications, Inc.

Shin-Otemachi Building, 2-1, Otemachi 1-chome,
Chiyoda-ku, Tokyo 100-0004+81-3-4477-2000+1-212-282-2000

Real estate operations

100.0+1-212-698-2200

Real estate operations in the United States

100.0

Mitsubishi Estate London Limited

1271 Avenue of the Americas, 24th Fl. New York, NY
10020 U.S.A.
1271 Avenue of the Americas, 24th Fl. New York, NY
10020 U.S.A.
5 Golden Square London, W1F 9HT, U.K.

+44-20-7292-3180

Real estate operations in Europe

100.0

Mitsubishi Estate Asia Pte. Ltd.

138 Market Street #27-03 CapitaGreen, Singapore 048946 +65-6576-5790

Real estate operations in Asia

100.0

PT. Mitsubishi Estate Indonesia

Trinity Tower, JL. H. R. Rasuna Said Kav. C22 Blok IIB
Karet Kuningan Jakarta 12940 Indonesia, 52nd Floor
Level 15, Saigon Centre Tower 2, 67 Le Loi Street,
District1, Ho Chi Minh City, Vietnam
1805 Room Raffes City, 268 Xizang Middle Road,
Shanghai 200001, P.R.C.
100-6, Songren Road, Xinyi District, Taipei, 11073, Taiwan
Otemachi Financial City Grand Cube 9-2, Otemachi
1-chome, Chiyoda-ku, Tokyo 100-8189+62-212-527-027

Real estate operations in Indonesia

100.0+84-28-7302-6006

Real estate operations in Vietnam

100.0+86-21-6340-3000

Real estate business in China

100.0+886-2-2331-2189+81-3-6281-8000

Real estate business in Taiwan
Real estate business overseas
Real estate development, sales, leasing,management, real estate ownership, andmanagement

100.0
100.0

Mitsubishi Jisho Investment Advisors, Inc.

Marunouchi North Exit Building, 6-5, Marunouchi
1- chome, Chiyoda-ku, Tokyo 100-0005+81-3-3218-0031

100.0

Japan Real Estate Asset Management Co., Ltd.

+81-3-3211-7921

TA Realty LLC

Otemachi Park Building, 1-1, Otemachi 1-chome,
Chiyoda-ku, Tokyo 100-0004
One Federal Street, 17th Floor, Boston, MA 02110, U.S.A.

Specialist real estate investment management services (real estate investment
advisory and other services)
Investment corporation asset management

70.0

Europa Capital Group

42 Berners Street, London W1T 3ND, U.K.

+44-20-7881-6800

Investment management business in the
United States
Investment management business in Europe

MEC Global Partners Asia Pte. Ltd.

80 Raffes Place, No. 18-01, UOB Plaza 1, Singapore 048624 +65-6416-7888

Investment management business in Asiaand Oceania

67.0

Renovations concerning architectural designand engineering—such as construction andcivil engineering—urban and regional
development, and various consulting services
Corporation Interior design administrationand construction, manufacture, and sale offurniture and household items

100.0

Purchase, sale, and leasing brokerage ofcorporate real estate, leasing management,
real estate appraisal, and parking business
Operation and management of parking lots
and parking-lot consulting

100.0+81-50-3138-5280

Comprehensive supervision andmanagement of hotel business
Management and operation of the
Marunouchi Hotel

100.0

Mitsubishi Estate (Shanghai) Ltd.*

76.9

Mitsubishi Estate Taiwan Ltd.*
Mitsubishi Estate Residence Co., Ltd.

Yokohama Sky Building Co., Ltd.

60.0

+81-45-441-1221

Management of the Sky Building and the
Yokohama Shintoshi Building

62.0

1312-7, Oka, Konan-cho, Takamatsu, Kagawa Prefecture761-1401
1727, Irabusawada, Miyakojima, Okinawa Prefecture
906-0507+81-87-814-3355

73.1

3336-4, Sakaguchi, Makinohara, Shizuoka Prefecture
421-0411+81-548-29-2000

Operation of Takamatsu Airport and related
businesses
Operation of the Miyako Shimojishima
Airport Passenger Terminal and related
businesses
Leasing of the Mt. Fuji Shizuoka Airport
Terminal and commissioned management
and operation of the airport’s basic facilities
and airport parking lots maintained by theprefecture

Airport Operation BusinessTakamatsu Airport Co., Ltd.*
Shimojishima Airport Management Co., Ltd.*
Mt. Fuji Shizuoka Airport Co., Ltd.*+81-980-78-6365

69.0
50.0

* Outside the scope of consolidation

Investment Management Business+81-3-3214-4881

Dark fiber leasing and data center
housing businesses in the Marunouchi andOtemachi districts

51.0

Real Estate Sales
Otemachi Financial City Grand Cube 9-2, Otemachi
1- chome, Chiyoda-ku, Tokyo 100-8189+81-3-6281-8000

Real estate development, sales, leasing,management, real estate ownership, andmanagement

100.0

Shinjuku East Side Square, 27-30, Shinjuku 6-chome,
Shinjuku-ku, Tokyo 160-0022+81-3-6887-8200

Design and construction of single-unit
homes and housing complexes, renovationof homes and retail shops, etc.
Manufacture, processing, and sale ofconstruction materials

100.0

Marunouchi 2-chome Building, 5-1, Marunouchi 2-chome, +81-3-3287-5555
Chiyoda-ku, Tokyo 100-0005

MEC Design International

Inui Building Kachidoki, 13-1, Kachidoki 1-chome,
Chuo-ku, Tokyo 104-0054+81-3-6704-0100

Mitsubishi Real Estate Services Co., Ltd.

Otemachi Financial City Grand Cube, 1-9-2, Chiyoda-ku,
Tokyo 100-0004+81-3-3510-8011

Mitsubishi Estate Parks Co., Ltd.

3F, Seitoh Kaikan, 5-7, Sanbancho, Chiyoda-ku, Tokyo
102-0075+81-3-5215-1720

Otemachi Building, 6-1, Otemachi 1-chome, Chiyoda-ku,
Tokyo 100-0004
Otemachi Park Building, 1-1, Otemachi 1-chome,
Chiyoda-ku, Tokyo 100-8133+81-3-3212-8674

Human resource-related services

100.0+81-3-3212-0555

Land management in Mihama-ku, Chiba City

66.7

100.0

100.0

OthersCustom-Built Housing
Mitsubishi Estate Home Co., Ltd.

87.0

Real Estate Services BusinessResidential Business
Mitsubishi Estate Residence Co., Ltd.

+1-617-476-2700

100.0

Mitsubishi Jisho Sekkei Inc.

OthersShin Kokusai Building, 4-1, Marunouchi 3-chome,
Chiyoda-ku, Tokyo 100-0005

Rental management and community living
business
Purchase and sale of construction materials
and construction of prefabricated housing
using cross-laminated timber and laminated woodBusiness connecting multifamily buildings
to the internet

Architectural Design & Engineering Business* Outside the scope of consolidation

Marunouchi Direct Access Limited

100.0International Business

Mitsubishi Estate Vietnam Company Limited

Management of outlet malls

100.0

6-14, Kokubunoguchihigashi, Kirishima-shi, Kagoshima
Prefecture 899-4341

60.4+81-3-3275-5252

100.0

MEC Industry Co., Ltd.

Leasing, operation, and management oflogistics and office buildings

Otemachi Financial City South Tower, 9-7,
Otemachi 1-chome, Chiyoda-ku, Tokyo 100-0004
19-12, Takashima 2-chome, Nishi-ku, Yokohama,
Kanagawa Prefecture 220-0011

100.0+81-3-3748-2650

Retail Property Management Business
Mitsubishi Estate • Simon Co., Ltd.

Research and, proposals on the­environment and design
Purchase, sale and, leasing brokerage ofhomes for individuals and leasing
management
Leasing business in the Kansai area, realestate sales (sale of renovatedcondominiums)
Operation of commercial nursing homes

49.0

Royal Life Okusawa, 33-13, Okusawa 3-chome,
Setagaya-ku, Tokyo 158-0083
1-1, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-0004

Mitsubishi Estate New York Inc.

Hotel Business

100.0

Ryoei Life Service Co., Ltd.

Rockefeller Group International, Inc.

29.8

Management and landscaping of theHigashi Fuji Country ClubManagement of Asakura Golf Club

6-26, Motoyamaminamimachi, 8-chome, Higashinada-ku, +81-78-452-0668
Kobe, Hyogo Prefecture 658-0015

35.0

Logistics Facility Management BusinessRoyal Park Hotels and Resorts Co., Ltd.

100.0

URBAN LIFE Co., Ltd.

Hmlet Japan Co., Ltd.

Ikebukuro District Heating and Cooling Co., Ltd. World Import Mart Building, Sunshine City, 1 HigashiIkebukuro 3-chome, Toshima-ku, Tokyo 170-8630
O.A.P. D.H.C. Supply Co., Ltd.
OAP Tower, 8-30, Tenmabashi 1-chome, Kita-ku, Osaka,
Osaka Prefecture 530-6004
Minato Mirai 21 D.H.C. Co., Ltd.
1-45, Sakuragicho 1-chome, Naka-ku, Yokohama,
Kanagawa Prefecture 231-0062

Mitsubishi Estate Housing Components Co., Ltd. 228-4, Shinminato, Mihama-ku, Chiba, Chiba Prefecture
261-0002

106+81-43-498-6630

District Heating and Cooling BusinessTokyo Ryutsu Center Inc.

100.0

Others

Office Building Leasing Business

Marunouchi Heat Supply Co., Ltd.

71.5

Recreational Facilities

Office Building Management BusinessTokyo Garage Co., Ltd.

Share ofvotingrights (%)+81-43-242-9031

MEC Human Resources, Inc.
Keiyo Tochi Kaihatsu Co., Ltd.

100.0

Note: Share of voting rights held is as of March 31, 2022. Figures stated are from the Company’s securities report for FY2022.

107Corporate History

Organization
As of April 1, 2022

History

Client Strategy Planning Department

Collaborative Creation Sales Department

1972

1973

Nagoya Dai-Ichi Hotel opened (Hotel Business launched).

1983

The first phase of the Izumi Park Town Project launched.

General Meeting of Shareholders

1984

MEC UK Limited established.
Yokohama Office established (reorganized as Yokohama Branch in April 2000).

1986

Hiroshima Branch (renamed Chushikoku Branch in November 2017) andKyushu Branch established.

1989

Participation in the City of London’s Paternoster Square Project announced.
Capital investment in Rockefeller Group, Inc., initiated.

1990
1993

Group Strategy Committee
Strategic Investment Committee

Tenjin MM Building (IMS) opened in Fukuoka City.
Royal Park Hotel in Hakozaki, Tokyo, opened.
Hiroshima Park Building completed.

Yokohama Landmark Tower completed.
Yokohama Royal Park Hotel opened.

Urban Planning Department
Area Management Planning Department

Content Business Planning and Operation Department
Project Planning Department

Logistics Facility Development Department

Hotel Asset Management Office

Mixed-Use Development Department

Marunouchi Development Office
Yurakucho Development Planning Office
Uchi-kanda Development Office
Akasaka Development Office
Toyosu Development Office
Kudan Development Planning OfficeTOKYO TORCH Department

GOTEMBA PREMIUM OUTLETS® opened.

Internal Audit
OfficeUrban Redevelopment Department

Ikebukuro Development OfficeCommercial Property Management Department

Retail Property Strategy & Marketing Planning OfficeSustainability Committee

OCA TOKYO Business Promotion Office

2002

Marunouchi Building opened.

2003

Mitsubishi Trust and Banking Building completed (renamed Mitsubishi UFJ
Trust and Banking Building in October 2005).
Paternoster Square completed in the City of London.

2004

Marunouchi Oazo opened.

Museum Management Office

2005

Tokyo Building opened.

Airport Business Department

2007

Shin-Marunouchi Building opened.
The Peninsula Tokyo opened.

Sustainability Subcommittee

2009
2010

Marunouchi Park Building and Mitsubishi Ichigokan completed.

Safety Management Office

Facility Management Planning Department

Renewal Management Office
xTECH Leasing and Promotion Department
Flexible Workspace Planning and Operation Department

Nominating
Committee
Audit
Committee

Residential Business Group

Audit Committee
OfficeResidential Business Planning Department

Residential Value Chain Management Office

CLT Business, Residential Land &Recreational Facility Management Office

Remuneration
Committee

International Business GroupInternational Business Planning Department

Mitsubishi Ichigokan Museum opened.

Investment Management Group

2011
2012

Marunouchi Eiraku Building completed.
OTEMACHI FINANCIAL CITY (North Tower and South Tower) opened.

Risk Management &Compliance Committee

Mitsubishi Estate (Shanghai) Ltd. established.

2013

MARK IS shizuoka and MARK IS minatomirai opened.
Grand Front Osaka opened.

Risk Management &Compliance Subcommittee

Mitsubishi Estate Building Management and Mitsubishi Estate
Property Management integrated.

2014

Singapore CapitaGreen completed.

TA Realty LLC acquired.

2015

Dai Nagoya Building completed.
Otemon Tower • JX Building completed.

2016

Logistics Facility Tenant Relation OfficeHotel Business Department

Osaka Amenity Park (OAP) completed.

2001

Chelsea Japan Co., Ltd., became a Mitsubishi Estate consolidated subsidiary(renamed Mitsubishi Estate • Simon Co., Ltd., in February 2013).

Open Innovation Promotion OfficeUrban Energy Strategy Planning Department

Urban Project Development Department

1998

2008

Group Companies Management OfficeCommercial Property Business Strategy Department

1995

Sunshine City Corporation became a Mitsubishi Estate consolidated subsidiary.
Mitsubishi Estate Asia Pte. Ltd. commenced operations.

OTEMACHI FINANCIAL CITY GRAND CUBE completed.

Investment Management Business Department

Corporate Group
Corporate Planning Department

Corporate Planning Department Affiliated Group Office
Strategic Investment OfficeSustainability Management and Promotion Department
Finance & Accounting Department
Corporate Communications Department

Investor Relations Office

Human Resources Department

Human Resources Compliance & Diversity Promotion Office

General Affairs Department

Secretary Office

Rugby Marketing Office

Legal & Compliance Department

Hirotaka Sugiyama and Junichi Yoshida appointed chairperson of the Board andpresident & chief executive officer, respectively.
Taiwan Representative Office established.

2017

Otemachi Park Building completed.

Head Office relocated to Otemachi Park Building.

2018

Marunouchi Nijubashi Building completed.

Establishment of PT. Mitsubishi Estate Indonesia and Mitsubishi Estate Vietnam
Company Limited.

2019

Mitsubishi Estate delisted its shares from the Nagoya Stock Exchange.

Computer Security Incident Response Team (CSIRT)

Corporate Strategy Committee

Executive Committee

Mitsubishi Estate Home Co., Ltd., established.

Transitioned to a Company with Nominating Committee, etc.,
organizational structure.
Tokyo Ryutsu Center Inc. became a Mitsubishi Estate consolidated subsidiary.

5G Infrastructure-Sharing Business OfficeCommercial Property Business Group2000

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

Innovation and Business Transformation Group
Business Creation Department

Commercial Property Business Planning Department

1996

108

Hokkaido Building completed.

DX Promotion Department

Branches established in Sapporo (renamed Hokkaido Branch in November 2017),
Sendai (renamed Tohoku Branch in July 1989), Nagoya (renamed
Chubu Branch in April 2018), and Osaka (renamed Kansai Branch in April 2016).
Strengthened business in major Japanese cities.

Mitsubishi Estate Residence Co., Ltd., established.

Facility Management Consultancy Office

President & Chief Executive Officer

Corporate Data

Mitsubishi Estate New York Inc. established. Began expansion of businessoverseas.
Mitsubishi Real Estate Services Co., Ltd., established.

Mitsubishi Jisho Investment Advisors, Inc., established.

Master Lease Sales Office

1959

1969

Properties and equipment revaluated in accordance with the Law Concerning
Revaluation of Land and other relevant laws and regulations.

Relocation Management OfficeWorkplace Solutions Office

1962

Began first stage of Marunouchi redevelopment.

Global Marketing and Promotion Office

1953

Akasaka Park House offered for sale in lots, marking the launch of
the condominium business.

Reconstruction of Marunouchi Building announced.

Office Leasing and Tenant Relations Department

Shin-Marunouchi Building completed.

Chairperson of the Board

Marunouchi Remodeling Plan formulated. Met demand for offices in the yearsof high economic growth.

Business Development, Consulting & Solutions Department

1937
1952

Mitsubishi Estate’s shares listed on the Tokyo Stock Exchange andthe Osaka Securities Exchange.

Business Development, Client Relations & Solutions Group

Major properties

Board of Directors

Mitsubishi Estate Company, Limited, established with paid-in capital totaling¥15 million, with the ownership of the Marunouchi Building and site, as well as
business rights for buildings and land within the Marunouchi area, transferredfrom Mitsubishi Goshi Kaisha.

Hokkaido Branch
Tohoku Branch
Yokohama Branch

Minato Mirai 21 Office

Chubu Branch2020

Mizuho Marunouchi Tower, Ginkokaikan, and Marunouchi Terrace completed.

2021

TOKYO TORCH Tokiwabashi Tower completed.

Kansai Branch

GRAND FRONT OSAKA Office

Chushikoku Branch

Umekita Development Office

Kyushu Branch

IMS Development Office109About Our Website

Corporate Information
As of March 31, 2022

Company Name Stock Information 

Mitsubishi Estate Co., Ltd.

Stock Details
Number of authorized shares: 1,980,000,000 shares

Date of Establishment 

Number of shares issued and outstanding: 1,391,478,706(150,390 increase in number of shares from the previous
fiscal year-end)

May 7, 1937

Number of shareholders: 73,602(Increase of 7,180 shareholders compared with the end of theprevious fiscal year)

Paid-in Capital ¥142,414 million
Business Activities 

Shareholder Composition

Development, leasing, and management of office buildings, retail,(Percentage of shares held)

and other facilities

Individuals and others

10.72%

Mitsubishi Estate Group Corporate Website
https://www.mec.co.jp/index_e.html

Development of real estate for investment purposes and asset

Government andlocal public authorities

management

0.00%

Development and sale of land for housing, research, and other facility use
Financial institutions

Corporate Data

34.68%

41.56%

Sale and brokerage of real estate and related consulting services

Financial instruments
business operators

Overseas individuals andcompanies

Management of leisure and other facilities

3.35%
Operating and other companies

Number of Employees (Excluding temporary staff) 
Non-consolidated: 974
Consolidated: 10,202

9.69%

Website 

MITSUBISHI ESTATE CO., LTD. Integrated Report 2022

https://www.mec.co.jp/index_e.html

Number ofshares held Shareholding(Thousands percentageof shares)(%)

Head Office
Otemachi Park Building, 1-1, Otemachi 1-chome, Chiyoda-ku,
Tokyo 100-8133
Phone: +81-3-3287-5100

The Master Trust Bank of Japan, Ltd.
(Trust Account)

228,398

17.26

Custody Bank of Japan, Ltd. (Trust Account)

67,952

5.13

Hokkaido Branch
Hokkaido Building, 4-1, Kita 2-jou Nishi, Chuo-ku, Sapporo,
Hokkaido 060-0002
Phone: +81-11-221-6101

Major Shareholders

Meiji Yasuda Life Insurance Company

42,194

3.19

JP MORGAN CHASE BANK 380055

41,1093.10

SSBTC CLIENT OMNIBUS ACCOUNT

25,134

1.90

STATE STREET BANK WEST CLIENT – TREATY
505234

21,291

1.60

Takenaka Corporation

18,1501.37

JPMorgan Securities Japan Co., Ltd.

17,903

1.35

Obayashi Corporation

16,422

1.24

SHIMIZU CORPORATION

16,367

1.23

Note: The shareholding percentage ratio is calculated after deducting the shares of treasury stockfrom the issued shares of the Company.

110

Tohoku Branch
Sendai Park Building, 6-1, Kokubun-cho 3-chome, Aoba-ku,
Sendai, Miyagi Prefecture 980-0803
Phone: +81-22-261-1361
Yokohama Branch
Yokohama Landmark Tower, 2-1, Minato Mirai 2-chome,
Nishi-ku, Yokohama, Kanagawa Prefecture 220-8115
Phone: +81-45-224-2211

Sustainability Information

IR Information

https://www.mec.co.jp/e/sustainability/index.html

https://www.mec.co.jp/e/investor/index.html

Our website contains sustainability reports and otherinformation that summarize Groupwide sustainability-related
data and initiatives based on important sustainability issues.

In addition to financial information, the site contains various
IR explanatory materials and an asset book.

Chubu Branch
Nagoya Hirokoji Building, 3-1, Sakae 2-chome, Naka-ku,
Nagoya, Aichi Prefecture 460-0008
Phone: +81-52-218-7755
Kansai Branch
OAP Tower, 8-30, Tenmabashi 1-chome, Kita-ku,
Osaka, Osaka Prefecture 530-6009
Phone: +81-6-6881-5160
Chushikoku Branch
Hiroshima Park Building, 7-5, Otemachi 3-chome, Naka-ku,
Hiroshima, Hiroshima Prefecture 730-0051
Phone: +81-82-245-1241
Kyushu Branch
Tenjin Twin Building, 6-8, Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka Prefecture 810-0001
Phone: +81-92-731-2211

111