Supplementary Material
Second Quarter of Fiscal 2022
(April 1, 2022 - September 30, 2022)

【Contents】Contents
The Ninth Management Plan (Apr 1, 2022 - Mar 31, 2025)

3

Historical Financial Results

7

Policy for Shareholder Returns

8

Results for the Second Quarter of Fiscal 2022 (Apr 1 - Sep 30, 2022)

9

Forecasts for Fiscal 2022 (Apr 1, 2022 –Mar 31, 2023)

10

Principal New Development Projects

11

ESG Initiatives

19

Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (3)Positioning of the Ninth Medium-Term Management Plan

Ninth Medium-Term Management Plan is the first steptoward achieving ¥300 billion in ordinary profit for fiscal 2030
Achieve sustainable profit growth by focusing on further expansion of leasing assets
High social contribution of our business itself
Increasing investment capacity and flexibility
in capital strategy
1st - 3rd Plan
( '98 - '07 )Ordinary Profit
350(Billion yen)

300

Resilient management foundationand sustainable growth

4th - 8th Plan
( '08 - '22 )9th - 11th Plan
( '23 - '31 )• Restore asset base damaged by • Double our leasing assets
the bursting of Japan’s bubble• Strengthen the foundation of each segmenteconomy• Enhance shareholders’ equity; lifting the credit• Reduce interest-bearing debt
rating to the AA zone

Ordinary Profit¥300 billion

Gross floor area
(Thousand3,500tsubo*)* 1 tsubo≈3.3㎡

3,000

250

2,500

Gross Floor Area
(Owned)

200

2,000

More than+700(right scale)

150

Thousand tsubo

100OrdinaryProfit

50
0'97

'99

'01

'03

(Years ended/ending March 31)

'05

'07

'09

'11

'13

'15

'17

'19

'21

1,500
1,000500'23 (F)'31 (F)

0Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (4)Three-year Cumulative Earnings Targets

Consecutive record profit for the period covered
Achieve cumulative ordinary profit of ¥750 billion and profit of ¥500 billion over thethree-year period

Aim to achieve record profits for the fourth consecutive plan since the Sixth Management Plan by
maintaining the pace of growth attained through the Eighth Management PlanThree-year cumulative earnings targets
3 trillion (Vs. 8th Plan+ ¥ 130 billion,+ 5 %)“+¥83 billion,+ 12 % )(“+¥94 billion,+ 14 % )(“+¥67 billion,+ 16 % )Revenue from Operations¥

Operating Income¥770 billion(Ordinary Profit¥

750 billion

Profit¥

500 billion(Billion yen)

6th Plan(Three-yearcumulative totals)

2014-2016

7th Plan
2017-2019

8th Plan
2020-2022

9th Plan2023-2025,Revenue from Operations

2,442

2,886

2,870

3,000

Operating Income

501

613

687

770

Ordinary Profit

418

558

656

750

Profit

238

353

433

500

(Years ended/ending March 31)

Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (5)Performance Targets and Strategies by Segment
Maintain the position of office building leasing in Tokyo as a solid foundation, and aimto utilize the comprehensive strengths of the Group as a whole to achieve the targets(Billion yen)

Performance Targets
by Segment(Three-year cumulative totals)

6th Plan
2014-2016

7th Plan
2017-2019

8th Plan

9th Plan2023-2025

2020-2022

886
773
589
177

1,073
957
635
208

1,219
822
612
210

1,300
750
700
250

2,442

2,886

2,870

3,000

Brokerage

314
127
47
41

416
140
50
47

487
151
55
44

520
150
75
68

Operating Income

501

613

687

770

Ordinary Profit

418

558

656

750

Profit

238

353

433

500

Leasing
Sales
Construction
Brokerage
Revenue from Operations
Leasing
SalesConstruction(Years ended/ending March 31)

Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (6)Performance Targets and Strategies by Segment
Aim to maintain the earnings foundation built through the Eighth Management Plan, andachieve profit growth for the fourth consecutive plan period

Leasing• In office building leasing, strive to maintain the profitability of existing buildings, while also securing
earnings with the full-year contribution of buildings completed in the 8th Plan (180,000 tsubo GFA) andby starting operation of new buildings to be completed in the 9th Plan (190,000 tsubo GFA) *1 tsubo≈3.3㎡• In the operation of commercial facilities (hotels, event halls, retail facilities, etc.), recover the profitability
to pre-COVID-19 levels and anticipate a return to growth from the 10th Plan onward

High level of profit of the Eighth Management Plan to be maintained

Sales

Construction

Brokerage• Maintain our policy of controlling the pace of sales, pursuing profit rather than volume• Rising construction costs will need to be addressed, but the impact will be limited as construction has
been started on all projects to be delivered during the 9th Plan
• Maintain our policy of securing prime sites steadily amid continuing intensified competition for landacquisition

In both remodeling (Shinchiku Sokkurisan) and custom home construction, focus oncontrolling costs while enhancing quality, and aim to achieve consecutive record profits by
expanding orders• Expand orders by proposing products that accurately respond to customer needs, such as a high levelof environmental performance and disaster preparedness• Appropriately address spikes in prices of wood and materials, and minimize the impact

Further strengthen profitability as we aim to achieve record profit in a management planwith a significant increase• Strengthen Group collaboration and further pursue customer-oriented services to expand our market
share
Sumitomo Realty & Development Co., Ltd.

Historical Financial Results (7)Historical Financial Results
Achieve record ordinary profit for the second consecutive year
Revenue from Operations(Billion yen)
1,100

1,000
900

(Billion yen)

'21'22'23(F)Revenue from Operations :

917

939

950

Revenue from Operations

Operating Income:

219

234

240

Operating Income

Ordinary Profit:

210

225

235

Operating Income
Ordinary Profit(Billion yen)
275

250

Ordinary Profit

225

800

200700175

COVID-19600

150500125400

10030075200

Lehman Crisis5025100
0'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 (F)(F)9th Plan
1st Plan
2nd Plan
3rd Plan
4th Plan
5th Plan
6th Plan
7th Plan
8th Plan0

Sumitomo Realty & Development Co., Ltd.

Policy for Shareholder Returns (8)Policy for Shareholder Returns *Revised on November 11, 2022
Increase the pace of the annual dividend increase from 5 yen to 7 yen,
due to the brightening outlook of the business performance

Maintaining policy of prioritizing investment in leasing office assets, and “sustainable dividendincrease” policy in line with profit growth< Cash Dividend per Share and Profit >(Billion yen)

200

Profit reachingrecord highs

ProfitCash dividend per share

Dividend increasing forthe 9th consecutive year150

80+ 7 yen
52

100

50
60(Yen)

'03

10

9'04

'05

'06

14'07

18'08

(Years ended/ending March 31)

21 22

20'09

24

27

30

35

40

60

45
40

20

'10'11'12'13'14'15'16'17'18'19'20'21'22 23(F)0Sumitomo Realty & Development Co., Ltd.

Results for the Second Quarter of Fiscal 2022 (9)Results for the Second Quarter of Fiscal 2022 (Apr 1 – Sep 30, 2022)(Billion yen)

Sep '21

Sep '22

Results

Increase/
Decrease

Results

FY '22

Forecasts

Achieved

Leasing

212

208

(4)

430

48%

Sales

158

154

(4)

220

70%

Construction

7476+2

220

34%

Brokerage3736(1)

78

47%

481

475

(6)

950

50%

Leasing

8887

(1)

165

53%

Sales

4347+550

94%

Construction

43(1)

2114%

Brokerage

1010+02050%

Operating Income

136

138+224057%(4)(2)+2(5)-Ordinary Profit

133

136+4235

58%

Profit attributable toowners of parent

91

94+3160

59%

Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd.

Forecasts for Fiscal 2022 (10)Forecasts for Fiscal 2022 (Apr 1, 2022 – Mar 31, 2023)
FY '20FY '21Results(Billion yen)

FY '22

Results

Forecasts

Increase/
Decrease

Leasing

398

425

430

+5Sales

263

234

220

(14)

Construction

189

204

220+16Brokerage

66

73

78+5917939

950+11Leasing

155

163

165+2Sales

545050(0)Construction

161921+2Brokerage

111820+2

Operating Income

219

234

240+6(9)

(9)

(5)

+4

Ordinary Profit

210

225

235+10

Profit attributable toowners of parent141

150

160+10Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (11)Capital Investment Plans(Non-current asset investment excluding sales assets, such as condominiums for sale)

Further investment in leasing office assets in central Tokyo, strengthening our earnings base
Expect to invest ¥1 trillion over the three years of the Ninth Management Plan
(1) Invest ¥700 billion in concrete development projects for over 700 thousand tsubo* of gross floor area, mainly comprisingredevelopment projects * 1 tsubo ≈ 3.3㎡(2) Ensure that we take advantage of opportunities that arise by securing ¥300 billion for investments in new projects(Thousand tsubo)< Development Pace of Gross Floor Area for Leasing >3,000

More than+700

Pace of development (Thousand tsubo)
2,500

2,000

Grossfloorarea

6th Plan

7th Plan

8th Plan

9th Plan

10th Plan
onward

110

210

180

190

520

thousand tsubo1,700

thousandsof tsubo+190

thousandsof tsubo

1,500

1,0005000

2001
1st Plan2004
2nd Plan(Years ended/ending March 31)

2007
3rd Plan2010
4th Plan2013
5th Plan2016
6th Plan2019
7th Plan2022
8th Plan2025
9th Plan

202810th Plan-

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (12)Principal New Office Building Projects*

Project Name

Location(Tokyo)1 tsubo ≈ 3.3㎡

Gross Floor
Area (Tsubo*)

Completion(Expected)

Tokyo Mita Redevelopment Project(Mita 3- and 4-chome Project)

Minato Ward60,400

Feb 2023

Nishi-shinjuku 5-chome Kita Project

Shinjuku Ward

41,300Mar 2023

Taito Ward

3,000

Jan 2024

Sumitomo Fudosan Shinjuku Minamiguchi Building(Shinjuku Minamiguchi Project)

Shibuya Ward

7,200

Feb 2024

Nakano 2-chome Project

Nakano Ward

30,000Feb 2024

Roppongi Ekimae Project

Minato Ward

9,700

Oct 2024

Shinagawa Ward

8,800

Jul 2024

Sumitomo Fudosan Akihabara East Building

Sumitomo Fudosan Osaki Twin Building West
Others

9th Plan Total

33,900

194,300

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (13)Principal New Office Building Projects

Tokyo Mita Redevelopment Project(Mita 3- and 4-chome Project)
Location
Completion

Minato Ward,Tokyo

Gross Floor
Area

60,400 tsubo

Feb 2023(Expected)

No. of Floor

42 above ground/
4 below ground*1 tsubo ≈ 3.3㎡

Nishi-shinjuku 5-chome Kita Project
Location

Shinjuku Ward,Tokyo

Completion

Mar 2023(Expected)

Gross Floor
Area

41,300 tsubo

Office:35 above ground/2 below groundNo. of Floor
Residence:35 above ground/2 below ground

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (14)Principal New Office Building Projects

Sumitomo Fudosan Shinjuku Minamiguchi
Building (Shinjuku Minamiguchi Project)*

1 tsubo ≈ 3.3㎡

Nakano 2-chome Project

Location

Shibuya Ward,Tokyo

Gross Floor
Area

7,200 tsubo

Location

Completion

Feb 2024(Expected)

No. of Floor

18 above ground/
1 below ground

Completion

Nakano Ward,Tokyo

Gross Floor
Area

30,000 tsubo

Feb 2024
37 above ground/
No. of Floor
2 below ground(Expected)
Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (15)Principal New Office Building Projects

Roppongi Ekimae Project*

1 tsubo ≈ 3.3㎡

Sumitomo Fudosan Osaki Twin Building West

Location

Minato Ward,Tokyo

Gross Floor
AreaCompletionOct 2024(Expected)

No. of Floor 22 above ground

9,700 tsubo

Location
Completion

Shinagawa Ward,Tokyo

Gross Floor
Area

8,800 tsubo

Jul 2024
14 above ground/
No. of Floor
1 below ground(Expected)
Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (16)Haneda Airport Garden: Hotel opening on December 21, 2022

* Grand opening scheduled in January 2023

Spa "Izumi Tenku no Yu Haneda Airport"

Location

Ota Ward, Tokyo

Completion

Mar 2020

Gross Floor
Area

91,500 m2

No. of Floor 12 above ground

Main
PurposesIL RISTORANTE TOKYOHotel (a luxury hotel with 160 guestrooms, a high-grade
hotel with 1,557 guestrooms), spa, commercial facility,
event hall, conference/banquet room,bus terminal, etc.
Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (17)Principal Condominium Projects (Scheduled Delivery in FY2022)*

Units = No. ofunits for sale

Grand Hills Minami Aoyama

City House Koganei Koen

City Terrace Yachiyo Midorigaoka
Breeze Court

Minato Ward, Tokyo

Kodaira, Tokyo

Yachiyo

100 units

740 units

210 units

18 above ground / 2 below ground

9 above ground

15 above ground

City Tower Osaka Honmachi

Umeda Garden Residence

City Terrace Kamisugi

OsakaOsakaSendai

855 units

584 units

336 units

48 above ground / 1 below ground

56 above ground / 1 below ground(9th ～ 39th floors）

13 above ground / 1 below ground

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (18)

Principal Condominium Projects (Scheduled Delivery from FY2023)*

Units = No. ofunits for sale

City Tower Shinjuku

City Terrace Nakano

City Terrace Bunkyo Koishikawa

Shinjuku Ward, TokyoNakano Ward, Tokyo

Bunkyo Ward, Tokyo162 units

119 units

120 units

35 above ground / 2 below ground

6 above ground

7 above ground / 1 below ground

City Terrace Akabane THE EAST

City Terrace Shonan Hiratsuka

Bay City Towers Kobe

Kita Ward, Tokyo

Hiratsuka

Kobe

300 units

425 units

WEST: 346 units, EAST: 353 units

15 above ground

7 above ground27 above ground / 1 below ground(Both West and East)

Sumitomo Realty & Development Co., Ltd.

ESG Initiatives (19)ESG-related Certifications from Third Parties
Third-party environmental recognitions for leasing assets (acquisition of DBJ Green Building Certification)
 45 properties with approx. 910,000 tsubo, acquired certification, accounting for 62% of the total
floor area of properties owned by the Company(GFA basis, as of October 31, 2022, 1 tsubo ≈ 3.3㎡)

 The constant “environmental and social awareness” of our properties was highly recognized
Properties that have acquired ★5 stars*DBJ Green Building Certification is acertification system established by theDevelopment Bank of Japan to evaluate
real estate for its performance andShinjuku Grand Tower
initiatives regarding “environmental andsocial awareness” beyond its “profitability.”

Osaki Garden Tower Shinjuku Garden Tower Tokyo Nihonbashi Tower Azabujuban Building

Roppongi Grand Tower

Ariake Garden

Included in ESG Index
FTSE

MSCIS&P

SNAM

Sumitomo Realty & Development Co., Ltd.

ESG Initiatives (20)List of ESG Initiatives (Fiscal 2022)
Date(Released)
Apr 2022

May 2022

E S G

ESG Initiatives● ●Shinchiku Sokkurisan started offering SUMIFU × ENEKARI, a new solar power generation service through renovating
existing detached houses●Participated in the “30by30 Alliance for Biodiversity” Strengthened biodiversity conservation activities● ●Launched “Sumitomo-Fudosan-no-SUMICA,” ensuring heat insulation and energy-saving performance that exceed thelatest ZEH standards●Signed a comprehensive collaborative agreement on forest cultivation with Susono City●

Establishment of CO2 emissions reduction targets (an interim target by FY2030, and a target for the Ninth Management Plan)● Integrated Risk Management Committee into Sustainability Committee● Disclosed skill matrix of each director● Introduction of numerical target for strategic shareholdings

Jun 2022● ●Released the result of joint research with the University of Tokyo and Musashino University, on decarbonization through“Shinchiku Sokkurisan” building renovation●Signed a comprehensive collaboration agreement with Daikin for decarbonization of air conditioning systems(Phase 1: Regeneration and reuse of recovered refrigerants)● ● ● Included in ESG Index: “MSCI Japan ESG Select Leaders”● ●●Aug 2022

The renovation of Shinjuku Sumitomo Building and its “Sankaku Hiroba (triangular plaza)” won the “Award of Minister ofLand, Infrastructure, Transport and Tourism” for Achievement Award of Japan Association for Real Estate Sciences
Held the 111th STEP Concert, a classic concert for families to enjoy (registration required, free invitation)● ●Held wood education event at Ariake Garden using timber cut from the "Sumitomo Fudosan no Mori" forest regeneration project●

Replaced vending machines in office buildings with ”LOVE the EARTH Vendor“ powered by virtually zero CO2 emissions electricity● ●One of our largest office buildings, "Mita 3- and 4-chome Area Type 1 Urban-Redevelopment Project," certified as"ZEB Ready“(Zero Energy Building with energy saving of 50% or more)

Oct 2022

Most of the above initiatives have been announced through news releases.

Sumitomo Realty & Development Co., Ltd.

(21)Sumitomo Realty & Development Co., Ltd.
Investor Relations, Corporate Planning Department

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Sumitomo Realty & Development Co., Ltd.