MORI BUILDING CO., LTD.
Interim Financial Report for Fiscal Year Ending March 2024 (FY2023)
2023.12

Azabudai Hills (Opened on November 24)

0

01

Overview of Interim Financial Results for FY2023

02

Financial Forecasts for FY2023

03

Ongoing Projects

04

Referential Materials

1Overview of Interim Financial Results for FY2023（Consolidated）（Billions of yen）

FY2022
1H

FY2023
1Hchange YoY
JPY%

Operating revenue

156.1

125.2

△30.8

△20%

Operating income

39.3

18.3

△21.0

△53%

Ordinary income

39.0

17.2

△21.8

△56%

Profit attributable to owners of parent

26.2

13.7

△12.5

△48%

FY2022

FY2023
1HchangeTotal assets

2,608.4

2,643.4

+34.9

+1%

Interest-bearing debt

1,602.0

1,631.4

+29.4

+2%

Equity

674.6

690.3

+15.7

+2%

Equity ratio

25.9%

26.1%

+0.3%

-

(28.7%)(29.0%)

1.66

1.79

+0.13

-

(After considering equity capital attributes of hybrid securities)

Net D/E ratio(After considering equity
capital attributes of hybrid securities)2

Consolidated Income Statement for FY2023 First Half Period■ Operating revenue（Billions of yen）

FY2022
1H

FY2023
1Hchange YoY
JPY%

Leasing

83.9

90.6

+6.7

Property sales

50.2

7.9

△42.3

Operation of facilities

11.1

15.1

+3.9

Overseas

13.5

14.5

+1.0

Operating revenue

156.1

125.2

△30.8

Leasing

17.5

16.5

△1.0

Property sales

24.2

3.5

△20.6

Operation of facilities

△ 0.6

1.3

+2.0

4.6

4.5

△0.1

Operating income

39.3

18.3

△21.0

Non-operating income

4.3

3.9

△0.3

Non-operating expenses

4.6

5.0

+0.4

Ordinary income

39.0

17.2

△21.8

Extraordinary income

0.3

3.5

+3.1

Extraordinary losses

0.4

0.1

△0.3

Income before income taxes

38.9

20.6

△18.3

※depreciation

26.2
14.2

13.7
16.1

+6.7
156.1

+3.9

+1.0

Operationof facilities

Overseas△20%

FY2022
1H

Leasing

Propertysales■ Operating income+1.8

FY2023
1H（Billions of yen）

△1.0

△53%

+2.0

△20.6

△56%

FY2022
1H

Leasing

Leasing

△12.5

125.2

△42.3

39.3

Overseas

Profit attributable to ownersof parent（Billions of yen）

△48%

18.3

△0.1

Property Operation Overseas
sales
of facilities

FY2023
1H

Includes revenue gained from leasing and management and operation of realestate, consigned operation of real estate, contracted construction, regional
heating and cooling/electricity supply, etc.

Property sales

Includes revenue gained from real estate property sales to investors andindividual customers.

Operation of facilities

Includes operation and management of hotels, membership clubs and golfcourses.

Overseas

Includes urban development and real estate leasing and managementbusinesses, etc. outside Japan.

3

FY2023 First Half Period ~Segment Overview （Leasing）~■ Changes in operating revenue for each segment（Billions of yen）

FY2022
1H

FY2023
1Hchange+4.2

Operating revenue

83.9

90.6

+6.7

200.0

Leasing and management andoperation of real estate

59.1

63.4

+4.2

-

Consigned operation of realestate

12.3

13.0

+0.7

-

Contracted construction

4.4

4.7

+0.3

-

Regional heating andcooling/electricity supply

4.1

4.8

△0.6

-

Other

3.7

4.4

+0.7

-

17.5

16.5

△1.0

30.0

Operating income（Billions of yen）

FY2023
Forecast■ Changes in operating revenue

+0.7

+0.3

+0.6

+0.7

Consigned
operation ofreal estate

Contracted
construction

Regional
heating andcooling/
electricity supply

Other

83.9

FY2022
1H

Leasing andmanagement
and operationof real estate

200.0

10.4
110.5 111.2 111.8 5.0
12.9
4.6
5.2
17.0

70.5

12.0
4.9
6.7
18.0

69.4

9.4
4.7
6.0
20.5

71.1

8.8
34.5

8.6
31.0

10.0
18.9

9.5
15.9

152.9 155.2 156.4
7.8
4.7
13.6
17.9

10.5
5.0
8.7
20.2

110.6
105.5 110.6 108.6
74.9 100.6

FY2023
1H■ Changes in operating income（Billions of yen）

151.0 145.2 147.5
5.5
6.4
133.8 5.1
5.5
4.8
5.1

90.6

12.4
5.6
7.3
19.4

170.8
161.7 157.1 155.4 8.3
12.4
5.3
9.8
22.8

4.9
5.3
11.3
27.6

5.4
5.8
7.5
22.1

8.1
8.8
24.5

111.4 111.2 108.0
114.3 120.8

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Forecast（Billions of yen）

Forecast for Second
Half Period

Forecast for Second Half
PeriodOther

Results

Regional heating andcooling/electricity supply
Contracted construction

Consigned operaion ofreal estate

23.8
20.4 19.1 17.3

26.8 29.0

39.0 39.2 38.7
33.0 36.7

32.1 32.2 33.2 30.0

Leasing andmanagement andoperation of real estate16.
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

4Segment Overview （Leasing） ～Vacancy rate～■ Vacancy rate of offices for lease
15%

10.0%
9.2%

10%

8.8%

9.0%

8.6%
6.7%

8.0%

5%

5.3%
6.0%
4.0%

4.0%

4.3%

FY2010FY2011FY2012FY20133.6%

3.0%

FY2014Mori Bld.

FY2015

6.4%

6.4%

6.2%

3.0%

3.0%

FY2022

FY2023
1H

2.8%
1.8%

3.0%

0%
FY20095.4%

2.0%

2.0% 1.0%

FY2016FY20171.5%
1.0%

FY2018

Office Building Market (5 central wards of Tokyo)

FY20192.0%

2.0%

FY2020

FY2021

Source: Miki Shoji Co., Ltd.

■ Vacancy rate of residential units for lease
20%

15.9%
15%

14.0%

12.0%

11.9%

9.9%
10%

9.0%

9.4%

9.3%

8.4%

7.9%

7.6%

8.6%
7.5%

8.3%

8.3%
7.3%

8.4%

8.0%

7.0%

7.0%

5%

9.0%

6.0%
5.0%

5.0%

5.0%

5.0%

FY2013

FY2014FY2015FY20164.0%

4.0%

FY2017FY20185.0%

5.0%

FY2022

FY2023
1H

0%
FY2009FY2010FY2011FY2012Mori Bld.

Residential Market （3A area）

FY2019FY2020

FY2021

Source: KEN Residential Market Report5

FY2023 First Half Period ~Segment Overview （Property sales）~（Billions of yen）

FY2022
1H

Operating revenue

FY2023
1HchangeFY2023
Forecast

50.2

7.9

△42.3

94.0

Real estate sales business forinvestors

-

7.9

+7.9

-

Residential sales business forindividual customers

50.2

-

△50.2

-

24.2

3.5

△20.6

51.0

Operating income■ Residential sales business■ Changes in operating revenue
94.0（Billions of yen）

77.2
66.1

14.1

70.0
16.1 58.7 58.2 57.1

9.1

20.3

43.2

32.7

137

12.1 44.9

0.9

33.6
0.8

67.8

8.8
63.0

56.9

41.9
39.6 40.6

Residential sales forindividual customers

8.1

Real estate sales forinvestors

7.5

4.6

40.9

53.9
42.2

Forecast for Second Half
Period

50.2

38.3

44.4

45.0

36.1

32.1 32.4

Azabudai Hills Mori JP Tower（Aman Residences,Tokyo）※Scheduled for delivery
in the second half

37.2
9.2

0
7.9

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

6

FY2023 First Half Period ~Segment Overview（Operation of facilities）~（Billions of yen）

FY2022
1H

FY2023
1HchangeFY2023
Forecast

Golf courses

Operating revenue

11.1

15.1

+3.9

36.0

Hotels

7.6

11.0

+3.4

-

Membership clubs

2.5

2.9

+0.4

-

Golf courses

1.0

1.0

+0.0

-

Operating income

△ 0.6

1.3

+2.0

3.0

 SHISHIDO HILLS Country Club「BMW Japan Golf Tour Championship Mori
Building Cup 2023」
1-4 Jun 2023

■ Major facilities operated by Mori Building Group

Hotels Grand Hyatt Tokyo

Presidential Suite Andaz TokyoSHIZU HILLS Country Club「SHIZU HILLS LADIES MORIBUILDING CUP」
25-27 Oct 2023

Andaz Sky Suite

7

FY2023 First Half Period ~Segment Overview （Overseas）~■ Changes in operating revenue（Billions of yen）
Forecast for Second Half
PeriodHotels, etc.

35.2（Billions of yen）

FY2022
1H

FY2023
1Hchange5.2

FY2023
Forecast

30.3

6.3

Operating revenue

13.5

14.5

+1.0

28.0

Offices

11.2

11.3

+0.1

-

2.3

3.2

+0.8

17.9

Operating income

4.6

4.5

△0.1

6.9

Offices

28.5

6.9

28.3

26.6 27.2
5.2

6.1

23.7

24.1

5.1

4.3

5.8

26.4

28.0

5.0

5.8

14.4
7.2

29.9
24.0

8.7

6.9

30.0

20.1

5.7

Hotels, etc.

31.2

24.2

23.0

21.6

21.3

21.0

18.5 19.7

22.4

3.2

21.4

14.2

10.7

11.3

8.5
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

Offices
Hotels, etc.

Leasing and management of offices and stores such as "Shanghai World
Financial Center", "Hang Seng Bank Tower", etc.
Operation of facilities such as "Park Hyatt Shanghai", etc.

■ Changes in operating income（Billions of yen）

Forecast for Second Half
PeriodResults

13.3
9.4

8.1

6.6

8.4

9.5

8.3

8.4

9.8

8.6

8.5

3.8
0.5

0.2

4.5

△1.0
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

8

Summary of Consolidated Balance Sheet for FY2023 First Half Period

2,608.4 2,608.4
280.5
Cash and cash equivalents

280.5

Inventories
59.7 59.7
Other current assets
53.8 53.8

Property, plant and1,906.3 1,906.3
equipment

2,643.4 2,643.4

2,643.4 2,643.4

184.3 184.3

253.9 253.9

97.2
91.6

97.2
92.9

（Billions of yen）

Bonds payable
253.9 253.9

1,377.5 1,377.5

Borrowings
1,348.0 1,348.0

309.6 309.6

Other liabilities
320.6 320.6

690.3 690.3

Equity674.6 674.6

11.9

11.1

1,946.5 1,945.2

Intangible assets
72.0

72.0

73.2

Investments and
235.9
other assets

235.9

250.3 250.3

FY2022As of Mar-31,2023

2,608.4 2,608.4

73.2

FY2023As of Sep-30,2023

11.9

Non-controlling interests
11.1

FY2022As of Mar-31,2023

9

Status of Interest-bearing Debt for FY2023 First Half Period
1,631.4

1,602.0

1,430.9（Billions of yen）
253.9

253.9

1,447.1

1,321.4

213.9

1,162.7
Bonds payable
Long-term borrowings
1,257.0

1,249.8

1,171.3

Short-term borrowings

Net interest-bearing debt
Cash and cash equivalents

45.5

90.9

127.7

184.3

268.2

280.5

FY2021

FY2022

FY2023
1H

10

Changes in Net Interest-bearing Debt and Net DER※ After considering equity capital attributes of hybrid securities（Billions of yen）

1,372.1
2.93

2.96
2.86

1,246.4

2.95
2.65

1,112.7
1,000.8 1,008.2

2.31

937.1

858.5 851.5 853.1 859.4 845.4
688.0 677.0 694.8 709.5 688.2

1.97

1.96

1.93

1.75

1.82

1.79

1.82
1.65

1.67

1.66

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
1H
Net interest-bearing debt
Net DER
11

23.9%

23.5%

24.0%

（Billions of yen）

Status of Equity （Ratio） for FY2023
First Half
22,102 Period
22,003
20,898

26.1%

24.5%

25.9%
2,608.4

2,280.9

23.5%

2,367.0

15,985

26.1%（Billions of yen）

2,643.4

23.9%

24.0%

16,74622,003

16,803
22,102

20,898

Liabilities, etc.

（Billions of yen）
EquityLiabilities, etc.

1,933.8
1,750.3

1,721.2

EquityLiabilities,
etc.

15,985
4,912

16,746
5,257

16,8035,299

FY2018FY2019FY2020
1H

616.6

559.7

FY20201,953.0

4,912

FY2018FY2021Equity ratio

674.6

Equity ratio

690.3

5,257

5,299

FY2019FY2020

FY2022Equity ratio
EquityFY2023
1H

12

Changes in Equity （Ratio）※ After considering equity capital attributes of hybrid securities（Billions of yen）

28.17% 28.74%
26.73%
24.75%

23.88% 23.57%

24.31%

765.3

24.70% 25.03%

666.6

21.68%

20.98% 21.11%

749.6

28.95%

609.7

19.82%
19.92%
19.45%

550.7
516.2
483.1
432.2 434.4 445.0
371.5

234.5 236.9 234.9 240.2

259.4

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
1H
EquityEquity ratio

13Income Generating Assets Unrealized Gains（Billions of yen）

1,213.1
1,072.6
913.0
806.8

949.5

999.3

838.2

737.4 727.6 755.6
554.5
474.3

503.0
436.7 450.3

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
1H※From the annual securities report

14

01

Overview of Interim Financial Results for FY2023

02

Financial Forecasts for FY2023

03

Ongoing Projects

04

Referential Materials

15

Financial Forecasts for FY2023（Billions of yen）

■ Operating revenue（Billions of yen）

FY2022

FY2023
ForecastchangeOperating revenue

285.5

353.0

+67.4

Leasing

170.8

200.0

+29.1

Property sales

67.8

94.0

+26.1

Operation of facilities

25.9

36.0

+10.0

Overseas

26.4

28.0

+1.5

63.4

75.5

+12.0

Leasing

33.2

30.0

△3.2

Property sales

33.7

51.0

+17.2

Operation of facilities

1.0

3.0

+1.9

Overseas

8.6

8.5

△0.1

60.5

65.0

+4.4

Operating income

Ordinary income
Profit attributable toowners of parent

200.0

47.0

FY2023
Forecast

170.8

94.0
67.8
25.9

Leasing

Property sales■ Operating income

36.0

Operation offacilities

26.4 28.0

Overseas

51.0
33.2 30.0

44.1

FY2022
Results

33.7

+2.8
1.0
Leasing

Property sales

3.0

Operation offacilities

8.6 8.5
Overseas16

01

Overview of Interim Financial Results for FY2023

02

Financial Forecasts for FY2023

03

Ongoing Projects

04

Referential Materials

17

Ongoing Projects

Global Business Center

11

14

1

10
12

9

3

Modern Urban Village

13

6

Cultural Heart of Tokyo

5

4

18

Portfolio （Major Properties）

1

3

2

Name of theproperty

ARK Mori Building

Location

4

Atago Green Hills

Hang Seng Bank Tower

MORI Tower

Forest Tower

Atago, Minato-ku

6

5

7

Motoazabu Hills
Forest Tower

Roppongi Hills
Mori Tower

Holland Hills
Mori Tower

Omotesando Hills
Jingumae, Shibuya-ku

Akasaka, Minato-ku

Pudong , Shanghai

Motoazabu, Minato-ku

Roppongi, Minato-ku

Toranomon, Minato-ku

Completion date

March 1986

April 1998

July 2001

October 2001

May 2002

April 2003

February 2005

January 2006

Number of floors

37 above ground4 underground46 above ground4 underground

42 above ground 2
underground

42 above ground 5
underground

29 above ground3 underground54 above ground6 underground

24 above ground2 underground

6 above ground6 undergroundTotal floor area

181,833㎡

116,824㎡

86,570㎡

62,475㎡

45,023㎡

379,408㎡

35,656㎡

34,062㎡

Name of theproperty

8

9

Shanghai World Financial
CenterARK Hills Sengokuyama
Mori Tower

10

11

12

13

14

Toranomon Hills
Mori Tower

Toranomon Hills Business
Tower

Toranomon Hills Residential
Tower

Azabudai Hills
Mori JP Tower

Toranomon Hills Station
Tower
Toranomon, Minato-ku

Pudong District , Shanghai

Roppongi, Minato-ku

Toranomon, Minato-ku

Toranomon, Minato-ku

Atago,Minato-ku

Azabudai,Minato-ku

Completion dateAugust 2008

August 2012

May 2014

January 2020

January 2022

June 2023

July 2023

Number of floors

101 above ground3 underground47 above ground4 undertground

52 above ground5 underground

36 above ground3 underground54 above ground4 underground64 above ground5 underground49 above ground4 undergroundTotal floor area

381,600㎡

143,426㎡

244,360㎡

172,925㎡

121,000㎡

461,770㎡

236,640㎡

Location

19

Azabudai Hills opening

Modern Urban Village Embracing Green & Wellness This "Hills of the Future" complex, boasting an overwhelming scale and impact, opened on Nov. 24, 2023.
 The skyscraper, which rises from a lush green environment at its base, embodies the Vertical Garden City

concept by integrating diverse urban functions including offices, residences, a hotel, an international
school, and retail and cultural facilities.
 Azabudai Hills has created a vast open space filled with greenery in the heart of Tokyo. Supported by its"Green" and "Wellness" pillars, it provides an exceptionally verdant environment where diverse people cancome together in harmony with nature to form a community and genuinely enjoy life together.

Azabudai Hills （September 13, 2023）
1990年
1990
Council of
Redeveloping
Citiesestablished (1989)

2000年
2000
UrbanRedevelopment
Preparations
Committee
established(1993)

2010年
2010Redevelopment
area rezoned (2001)

Central Green
2020

Site area

City Plan approved(Sep. 2017)
Urban Redevelopment Association
approved (Mar. 2018)
Rights conversion plan
approved (Feb. 2019)
Construction
started (Aug. 2019)©DBOX for Mori Building Co., Ltd.

Azabudai Hills from Sakurada
Street (from Kamiyacho vicinity)

Opened(Nov. 2023)

8.1ha

Ground area

63,900m2

Total floor
area

861,700m2

Construction
start

August 2019

OpeningNovember 2023

20

Azabudai Hills

Green & Wellness: Modern Urban Village
Site Plan

Garden Plaza

Cross-section Plan
Sakura-asa Street

Logo design expresses city concept

21

Azabudai Hills

Joint Lab with Keio University for Preventive Medicine and Wellness
 Keio University Center for Preventive Medicine opened in Mori JP Tower (5-6 fl.), Azabudai Hills on Nov. 6, 2023.
 The center is equipped with the latest medical equipment and a highly specialized medical team thatprovides personalized medical examinations tailored to the individualized needs of each patient. The
center also collaborates with other facilities in Tokyo to support wellness throughout the complex.
 The Joint Research Laboratory collaborates with the Center on conducting research in Azabudai Hills andapplying the findings to create a community of truly abundant health where people of all generations canlive and work vibrantly, both physically and mentally.

Structure of membership program

Cooperation between the Center for Preventive Medicine and the Joint Research Laboratory

Opening ceremony on October 4

5th floor entrance, Preventive Medical Center

22

Azabudai Hills

One of Tokyo's Largest International Schools
 The British School in Tokyo, one of Tokyo's largest international schools opened on August 30 as an

institution of learning situated in a rich environment in the heart of the city.
 The school, which draws on a 34-year history and British-style educational curriculum, offers a learning

environment steeped in international culture for students from more than 60 countries. Surrounded bynature, the school nurtures internationally minded students and prepares them to face the challenges of
future society.

Field

Classroom

Gymnasium

Indoor pool

Location:
Site area:
Students:
Yards:
Opening:

International School, floors B1-7
(Mori JP Tower)
About 15,000 m2
About 700 (as of August 30)
Two, each about 900 m2
August 30, 2023

23

MORI Building DIGITAL ART MUSEUM: EPSON teamLab Borderless

Relocation from Odaiba Area to open at Azabudai Hills
 MORI Building DIGITAL ART MUSEUM: EPSON teamLab Borderless, which Mori Building established andoperated in collaboration with teamLab, will be relocated to central Tokyo's Azabudai Hills in early February
2024.
 The

digital art museum, which opened in June 2018 in the Odaiba area's Palette Town mall andentertainment complex, attracted 2.3 million visitors from more than 160 countries in its first year. Abouthalf of the visitors came from overseas. The museum earned numerous prestigious national andinternational awards, including being named as one of the World's Greatest Places 2019 by the U.S.
magazine Time. The museum quickly became known globally as one of Tokyo's most popular destinations.

 The

newly reestablished digital art museum, which will continue to deliver unique guest experiences
based on its concept of "Wander, explore, discover in one borderless world," will steadily renew exhibitsthat blur the boundaries between guests and artworks. Once reopened, the museum is expected tostrengthen its reputation as one of Tokyo's leading destinations, attracting visitors from around the world.

ⒸteamLab

teamLab. Bubble Universe: Physical Light, Bubbles of Light, Wobbling Light,
and Environmental LightⒸteamLab

teamLab. Black Waves - Megalith Crystal Formation (work in progress)

24

Azabudai Hills

Commercial Area Supporting Enriched Lifestyles
 Some 150 retail facilities offering fashion goods, food, cosmetics, culture, art, wellness and more are being

gathered in a setting with surprisingly lush greenery for a central-Tokyo location. The stores support theaffluent lifestyles of people living, working and visiting Azabudai Hills. Customers can enjoy not only
shopping but also the value of new experiences.
 A

large food market called Azabudai Hills Market will be opened in late January on a basement level
underneath the Central Green. Measuring some 4,000m², the market offers a wide assortment of carefully
selected ingredients, inspired by the essential richness and enjoyment of food as well as Tokyo's rich foodculture and the delights of healthy gourmet dining.

Tower Plaza

Retail areas:
Stores:Locations:

Approx. 23,000m²
About 150
Mori JP Tower, floors B1-4,
Residence A, floors 1-2,
Residence B, floors B1-2
Garden Plaza A, floors B1-3
Garden Plaza B, floors B1-2
Garden Plaza C, floors B1-2
Garden Plaza D, floors B1-2

© DBOX for Mori Building Co., Ltd - Azabudai Hills

Azabudai Hills Market (rendition)
opening in late January

25

Azabudai Hills

Housing that Maximizes the Richness of Urban Living
 Residencesat Azabudai Hills, which total some 1,400 units, enable residents to live amidst abundant
greenery while fully enjoying advanced and convenient urban facilities. The residences offer layouts,
facilities and designs of the highest quality, including carefully designed common areas and personalized
services as well as magnificent views of the heart of the city.

Azabudai Hills Residence A (320 units)

Azabudai Hills Residence B (970 units)

Azabudai Hills Garden Plaza Residence (31 units)

Aman Residences, Tokyo (91 units)

26

Azabudai Hills"Janu Tokyo“, a new sister brand of Aman The lower levels (floors 1–13) of Residence A will be home to a new hotel, Janu Tokyo, with 122 guest

rooms ranging from 60m2 standard rooms to 284m² Janu Suites.
 As a new sister brand of Aman, this will be the global debut of the modern and invigorating Janu brand,

the name in Sanskrit meaning "soul.“ Like Aman, Janu will offer an unparalleled guest experience, but it will also provide a vibrant social scene

in contrast to Aman's serene retreats.
 Denniston Architects led by Jean-Michel Gathy designed the interior.
 Janu Tokyo will feature a 4,000m² wellness center, one of the largest for any hotel in Tokyo, as well aseight dining venues and bars to welcome both domestic and international guests.

Location:
Total area:
Wellness center:
Facilities:

Residence A (floors 1-13)
Guest rooms:
24,600m2
Standard rooms:
4,000m2
Interior design:
Restaurants, café, bar, wellness facilities and more

122
60m2
Denniston Architects

27

Azabudai Hills

Verdant Complex Functioning as One Unified Workplace The verdant Azabudai Hills complex functions as one unified workplace. Office space totaling 214,500m² isoffered mainly on floors 7 to 52 of Mori JP Tower, Garden Plaza and Residence B to support diverse
workstyles.
 Hills House on floors 33 and 34 is a base that allows tenant companies and their employees to use the entire

complex as a workplace. It functions like a "clubhouse" where workers meet across company boundaries.
Special mechanisms allow various functions and services in the complex to be customized to connect
individual offices and the complex so that people can work together to create more ideal ways of working.
 Tokyo Venture Capital Hub, Japan's first large-scale venture capital hub, brings together Japan Venture

Capital Association (JVCA), top independent venture capitalists (VCs) and some 70 corporate venture
capitalists (CVCs) backed by major Japanese corporations. As a base for supplying risk-money indispensable
for startup growth, the Hub is a catalyst for revitalizing the Japanese economy.
Hills House© DBOX for Mori Building Co., Ltd - Azabudai Hills

Members Lounge offering
diverseworkstyles and wellness services

Tokyo Venture Capital Hub© DBOX for Mori Building Co., Ltd - Azabudai Hills

Dining 33, a grand bistro forbusiness and private needs

Selected venture-capital firms in residence© DBOX for Mori Building Co., Ltd - Azabudai Hills

Sky Room restaurant/space for seminars,
corporate chartering, banquets, and more

© DBOX for Mori Building Co., Ltd - Azabudai Hills

Grand Staircase where peopleinteract for discovery

28

Toranomon Hills Station Tower Completes Toranomon Hills
 Toranomon Hills Station Tower's opening completes the expansion and evolution of Toranomon Hills.
 The Station Tower features a station plaza called Station Atrium and a 20-meter-wide pedestrian deck called T-Deck on

Sakurada-dori Avenue, both of which help to make the subway station a more lively and dynamic area.
 Now covering 7.5 hectares and 800,000 m² of floor area, Toranomon Hills integrates diverse urban functions and bothroad and rail infrastructure as a new international hub and global business center to attract global players with a scale andimpact comparable to that of groundbreaking Roppongi Hills.
Toranomon Hills Area Project (total of 4 buildings)： 7.5haSite area
Total floor area ： 792,000m2： 305,000m2
Offices： 730 units
Residences
Retail facilities ： 26,000m2： 21,000m2
Green area
Toranomon Hills Mori Tower
Opened in June 2014
Ground area
: 17,069m2
Total floor space : 244,360m2
Height: 247m/52 floors
Configuration: Offices, retail facilities, residences,hotel, conference facilities, etc.

Toranomon Hills (September 12, 2023)
2014
Toranomon Hills
Mori Tower
Toranomon Hills
Business Tower

Toranomon Hills
Residential Tower
Toranomon Hills
Station Tower

Toranomon Hills Station

2015

2016

2017

2018

2019

2020

2021

2022

2023

●Jun. Opened.
●Jul. City planning approval●Feb.Construction started●Jan. Redevelopment association established●Jan.. Completion

approval●Sep.Cityplanning.
●Mar. Constructionstarted●
Jan.. Completion●Mar. City planning approval●Nov.Redevelopment association established●Nov.Construction started●Jun. Opened.

Jul. ●
Completion●
Oct. Opened

Toranomon Hills Business Tower
Opened in June 2020
Ground area
: 10,065m2
Total floor space : 172,925m2
Height: 185m/36 floors
Configuration: Offices, retail facilities, incubation
center, bus terminal, etc.
Toranomon Hills Residential Tower
Completed in January 2022
Ground area
: 6,535m2
Total floor space : 121,000m2
Height: 220m/54 floors
Configuration: Residences, retail facilities, childcare,spa, etc.

Toranomon Hills Station Tower
Opened in October 6, 2023
Ground area
: 13,960m2
Total floor space : 236,640m2
Height: 266m/49 floors
Configuration: Offices, retail facilities, hotel,
interactive communication facilities, etc.

29

Toranomon Hills Station Tower

Open and Lively Station Atrium Created through Integrated
Development of Station and Surrounding Area
 The Station Atrium plaza (2,000m²) will be created through the integrated development of Toranomon

Hills Station on the Tokyo Metro Hibiya Line and the Toranomon Hills Complex.
 The Station Atrium is a three-story vaulted space combining coordinated and complementary urban andtransportation functions. It is richly illuminated with natural light, creating a bright and open all-weather
area that makes people forget they are actually below ground level. It's the first time such an expansive
open space has been created in a Japanese subway station.
 Providing direct connections between the station plaza and nearby facilities for events and shopping, theStation Atrium will be a bustling space with a steady flow of people from morning till night.

Station Atrium

Cross-section plan (rendition)

30

Toranomon Hills Station Tower

Retail Facilities Centered on T-Market
 Toranomon Hills Station Tower's retail space, totaling some 14,400m², encompasses nine floors (B2−7)

and some 80 stores that support the work and lives of global players, including office workers andresidents.
 T-Market, which is directly connected to the Station Atrium, features the area's first large-scale selectshop operated by BAYCREW's, and the CARAPPO comprehensive wellness center measuring some
2,000m², an unprecedented size for central Tokyo.
 T-Market restaurants offer high-quality, reasonably priced menus, many curated by acclaimed chefs andpâtissiers, including some with Michelin or Bib Gourmand credentials. On November 24, 13 more locations
opened, bringing the total to 27.
 Another 26 distinctive restaurants and shops will open on January 16, 2024, expanding Toranomon Hills'

commercial facilities to some 2.5 times the original number.

Queue in front of T-Market on opening day

Scene inside T-Market

31

Toranomon Hills Station Tower

20m-wide Pedestrian Deck Functions as an Additional Square The large-scale pedestrian deck is nicknamed T-Deck and boasts a generous width of 20 meters. Thiselevated walkway, which passes through the Station Tower's T-Deck, will arch over Sakurada-dori Avenue(National Route 1) to merge with Mori Tower's Oval Square. It will be the main east-west route used bypedestrians to cross the area and its busy arterial road, helping to safely separate people and vehicles.
 T-Deck will facilitate barrier-free accessibility to Toranomon Hills' various facilities. It will also provide

barrier-free access to Toranomon Station on the Tokyo Metro Ginza Line, Toranomon Hills Station on theTokyo Metro Hibiya Line as well as a bus terminal served by airport limousine buses and rapid transit
buses (BRT) connecting Tokyo's downtown and waterfront areas.
 In conjunction with Mori Tower's Oval Square, T-Deck will also boost the liveliness of the area byfunctioning as an additional square connecting people in Toranomon Hills.

T-DECK

Station Tower site plan

T-Deck across Sakurada-dori32

Toranomon Hills Station Tower

TOKYO NODE: Interactive Communication Facility Connecting
Tokyo with the World The top floors of Toranomon Hills Station Tower (45th to 49th floors and a section of the 8th floor) will behome to TOKYO NODE, a 10,000m² interactive communication facility designed to connect Tokyo with theworld as a nexus for disseminating new experiences, values, content and information created throughcollaborations that transcend domains such as business, art, entertainment, technology and fashion.
 To enhance the facility's capacity as a highly functional and distinctive space for communication andknowledge sharing, wholly unlike traditional conference and banquet facilities, TOKYO NODE's 8th floor
laboratory will bring together outstanding talent for joint research on future urban experiences.
 The tower's rooftop will feature a sky garden, pool, and two restaurants curated by world-class chefs.

Exterior view (rendition)©DBOX for Mori Building Co., Ltd.

TOKYO NODE GALLERY B (rendition)©DBOX for Mori Building Co., Ltd.

©DBOX for Mori Building Co., Ltd.

TOKYO NODE HALL (rendition)©DBOX for Mori Building Co., Ltd.

TOKYO NODE LAB (rendition)

TOKYO NODE SKY GARDEN & POOL

33

Toranomon Hills Station Tower

TOKYO NODE's Commemorative Opening Project In conjunction with Mori Tower's Oval Square, T-Deck will also boost the liveliness of the area byfunctioning as an additional square connecting people in Toranomon Hills.
 To celebrate the opening of TOKYO NODE, "Syn: Unfolded Horizons of Bodily Senses" by Rhizomatiks &ELEVENPLAY was staged as an immersive performance in a 1,500m² exhibition space that visitors could
step into.
 Rhizomatiks, a creative team led by Daito Manabe and Motoi Ishibashi, and ELEVENPLAY, a dancecompany led by MIKIKIKO, gave performances from October 6 to November 12 to reexamine humansenses in the AI age, presenting 24 dancers in a space that transformed as audience members enteredthe venue.
 The second commemorative exhibition, "Mika Ninagawa: Eternity in a Moment" by photographer anddirector Mika Ninagawa, will be held from December 5, 2023 to February 25, 2024.

"Syn: Unfolded Horizons of Bodily Senses," by Rhizomatiks & ELEVENPLAY

Intersecting Future, an exhibit in “Mika Ninagawa Eternity
in a Moment” (Rendition)

34

Toranomon Hills Station Tower

Hotel Toranomon Hills: Tokyo‘s First Unbound Collection by Hyattto open on December 6
 Toranomon Hills Station Tower (1st and 11th to 14th floors) will be home to Hotel Toranomon Hills, which

will feature 205 guest rooms, including standard rooms from 27m2 to 34m2 and maisonette suites offering
160m2 of spacious comfort.
 The hotel brand is "The Unbound Collection by Hyatt," which will be making its debut in Tokyo as a part ofthe company’s "Independent Collection." The brand comprises a curated compilation of one-of-a-kindhotels offering premium facilities, amenities and unique experiences of the highest originality and quality.
 The concept of Hotel Toranomon Hills is that of a hotel connected to diverse facilities and functions. It willserve as an "urban living room of Toranomon" welcoming a variety of guests with its restaurant, cafe andlounges open to the city.
 The hotel‘s interior design is by Space Copenhagen of Denmark, which is making its first appearance inJapan. The design is based on Scandinavian architectural style incorporating simplicity and natural
materials, blended with Japanese traditional architecture, to express a new type of luxury hotel inspired by
the aesthetics and practicality of Japanese architecture.

35

Azabudai Hills and Toranomon Hills Area ProjectPrecertified under LEED ND, LEED BD+C (CS), and WELL Standards
 Mori JP Tower in Azabudai Hills and the A-1 District of Toranomon Hills Station Tower both received WELL

precertifications for their office spaces and retail facilities. Once completed, both projects are expected toobtain top Platinum-level WELL certifications.
 Also, Azabudai Hills and Toranomon Hills both received top Platinum-level LEED ND precertifications fromthe U.S. Green Building Council (USGBC).
 In addition, Mori JP Tower in Azabudai Hills and Toranomon Hills Station Tower both received top Platinum-

level BD+C precertification for efficiency and are expected to be certified as environmentally friendly officespaces and retail facilities. Worldwide, there are few other cases of LEED ND and LEED BD+C (CS)certifications both being obtained.
WELL = WELL Building Standard
LEED = Leadership in Energy & Environmental Design, ND=Neighborhood Development, and BD+C (CS)=Building Design and Construction/Core and Shell Development

WELL Platinum Precertifications

WELL is the world's first performance-based system formeasuring, certifying and monitoring features of the built
environment that impact human health and wellbeing
through air, water, nourishment, light, fitness, comfort
and mind. WELL is managed by the U.S. Green Building
Council (USGBC).
Currently Mori JP Tower in Azabudai Hills is the world's
largest precertified property and the A-1 District ofToranomon Hills Station Tower is Japan's second largest
precertified property.
🄫DBOX for Mori Building Co., Ltd. - Azabudai Hills

Azabudai Hills with greenery (rendition)

Oval Square at Toranomon Hills Mori Tower

LEED ND Platinum Precertifications
LEED is the most widely used green-building rating
system that evaluates and certifies buildings and cities
worldwide for environmental performance in terms ofwater and energy efficiency, indoor environments andsustainable materials. LEED is also managed by the
USGBC.
The Azabudai Hills became Tokyo's first project toattain Platinum-level precertification in the ND
category and the Toranomon Hills Area Project quickly
followed as the second such project. It is rare forcomplexes in urban business areas to receive Platinumlevel precertification worldwide.

36

Twentieth Anniversary of Roppongi Hills (April 25, 2023)
 On April 25, 2003, 400 landowners joined Mori Building in creating Roppongi Hills, measuring some 12

hectares over a period of 17 years. Since then, this unprecedented urban center has attracted people,
goods, money and information worldwide.
 Concentrating urban functions in skyscrapers opened up vast open spaces on the ground level for

purposes such as greenery, cultural facilities and transportation infrastructure. This pioneered the"compact city" concept of combining urban functions within walking distance.
 Mori Building, the unified administrator of the area, set up a town management system to operate the

Roppongi Hills like a "city." The magnetic appeal of Roppongi Hills has been continuously strengthened bykeeping the complex fresh through organization of cultural events and the introduction of new commercial
stores, as well as by steadily deepening ties with local people.

37

Mori Art Museum 20th Anniversary Exhibition

Our Ecology: Toward a Planetary Living
 Mori

Art Museum, in commemoration of its 20th anniversary, is presenting "Our Ecology: Toward a
Planetary Living," an exhibition running from October 18, 2023 to March 31, 2024.
 The exhibition features some 100 works by 34 artists from 16 countries, ranging from historical pieces to

new works created especially for this exhibition, aiming to encourage viewers to reflect on environmental
problems and other global issues from diverse perspectives.
 The

organizers have created an environmentally sustainable exhibition by minimizing the impact oftransporting artworks and saving resources by reusing selected walls and panels from a previous exhibition.

Our Ecology: Toward a Planetary Living
Mori Art Museum, Tokyo, 2023
Photographed by Keizo Kioku

Asad Raza"Komorebi" (Dappled Sunlight)
Our Ecology: Toward a Planetary Living
Mori Art Museum, Tokyo, 2023
Photographed by Keizo Kioku

38Repurposing former Palette Town site in Odaiba

Immersive Fort Tokyo & City Circuit Tokyo Bay
 On Tokyo's Odaiba (Aomi) waterfront, Mori Building is temporarily leasing parts of the former Palette Town

(ceased operating on August 31, 2022) site to Katana Immersive LLC and TOM'S Inc.
 These locations will be the temporary homes of two cutting-edge urban entertainment facilities:

Immersive Fort Tokyo, the world's first immersive theme park, and City Circuit Tokyo Bay, one of Japan's
largest electric vehicle (EV) go-kart circuits.
 City Circuit Tokyo Bay opened on December 17 and Immersive Fort Tokyo will open in spring 2024.

Location and layout
Kokusai-tenjijo Sta.

Odaibakaihinkoen Sta.

Ariake Sta.

Tokyo Big Sight Sta.

Tokyo Teleport Sta.
Daiba Sta.
Aomi Sta.

Tokyo International
Cruise Terminal Sta.

Former site of Palette Town

Immersive Fort Tokyo
Telecom Center Sta.

City Circuit Tokyo Bay

39

Six Farm-scale Solar Power Plants Totaling Some 10 Hectares
 From FY2023 to FY2024, Mori Building will be engaged in developing and operating six farm-scale solar

power plants totaling about 10 hectares, aiming to promote both agriculture and solar power generation.
The plants will use renewable energy sources to supply electricity to Toranomon Hills Mori Tower and other
Hills-brand properties, targeting about 10-15% of the electricity consumed by each property.
 Under the Basic Agreement on Promotion of Decarbonization with Tokyo Electric Power Company Energy

Partners, Inc., flexible energy supply to each Hills property is envisioned.
 Mori Building joined RE100 in Sept. 2022 and obtained SBTi certification in Dec. 2022, which enabled thecompany to shift 70% of its internal power consumption to renewable energy as of March 2023.

Power Producer(Mori Building)Power plant construction:
Ecokaku Farm

Consumer(Mori Building & others)

PPA contract signed

Renewable electricity
from new PV

Retail Electricity
Provider(TEPCOEP)(Environmental value)

100% real
renewable electricity
Renewable electricity
from new PV(Renewable energy)

Farm-based solar
power plant to be
developed by Mori
Building

Real renewable electricity
with fossil-free certificatestracked daily

All power sources,
mainly thermal

Hills-class properties(Photo: Toranomon Hills Mori Tower)

40

01

Overview of Interim Financial Results for FY2023

02

Financial Forecasts for FY2023

03

Ongoing Projects

04

Referential Materials

41

Business of the Mori Building Group

Leasing Leasing and management andoperation of real estate○ Silent Partnership Roppongi Hills
Financial Corp
○ Silent Partnership AR・ONE○ Aomi T Special Purpose
Company○ Aomi S1 Special Purpose
Company※ Mori Hills REIT Investment
Corporation
 Consigned operation of realestate○ Mori Building Investment
Management Co., Ltd.
○ Mori Urban Planning Corporation
 Contracted construction
 Regional heating andcooling/electricity supply○ Roppongi Energy Service
Co., Ltd.
○ ARK Hills Heating & Cooling
Supply Co., Ltd.
○ Toranomon Energy Network Co.,Ltd.

Property sales
 Real estate sales businessfor investors
 Residential sales businessfor individual customers

Operation of facilities
 Hotel & Membership club○ Mori Hospitality Corporation
 Golf○ Mori building Golf Resort
Co.,Ltd.
 Nursing home
※ Prime Stage Co,. Ltd.

Overseas Offices○ Shanghai World Financial Center
Co., Ltd.
○ Shanghai Senmao International
Real Estate Co., Ltd.
 Hotels, etc.

○ Shanghai Hills HotelManagement Co., Ltd.
○ Shanghai Hills Forum & City
View Co., Ltd.
○ Mori Building China（
Shanghai） Co., Ltd.
○ Shanghai World Financial Center
Investment Co., Ltd.
○ Shanghai World Financial Center
Investment No.1
（Cayman） Limited○ Shanghai World Financial Center
Investment No.2
（Cayman） Limited○ Shanghai World Financial Center
Investment No.3
（Cayman） Limited〇 Mori Building Asia Pte. Ltd.

 Other

Investment, observation deck ,forum , etc.

○：Consolidated subsidiaries ※：Affiliates accounted for using the equity method

42Bond Issuance Policy, Bond Specification and Redemption Schedule

Bond Issuance
PolicyCorporate bonds will be issued in a flexible manner, taking into account the level of other companies
in the same industry and other factors, with a limit of 20% to 25% of non-consolidated interest-bearing
debt for the time being, depending on market trends.

■ Details of bonds in issue （as of October 31, 2023）
Years of maturity Amount of bonds issued（Year）（Billions of yen）

CouponInterest

Bp against
government bonds

Bp against
SWAP

Issue No.

Launch date

Maturity date

14th Bond
15th Bond
16th Bond

8/8/2014
2/6/2015
4/24/2015

8/14/2024
2/13/2025
4/30/2027

10
10
12

13.0
10.0
10.0

0.861%
0.784%
1.002%

34.0bp43.0bp56.0bp15.1bp16.4bp30.2bp18th Bond
19th Bond
21st Bond
23rd Bond
24th Bond
25th Bond
26th Bond
1st Subordinated bond

4/20/2016
7/5/2016
2/10/2017
5/11/20188/10/2018
7/25/201911/8/2019
1/17/20194/25/2031
7/11/2036
2/16/2027
5/17/2038
8/16/2028
7/31/2029
11/14/2029
1/31/2056

15
20
10
20
10
10
10
37

10.0
10.0
10.0
10.0
10.0
10.0
15.0
50.0

0.800%
0.830%
0.440%
0.970%
0.460%
0.340%
0.320%
1.430%

75.0bp78.0bp34.5bp44.7bp35.0bp48.6bp37.0bp158.0bp48.4bp66.4bp10.0bp28.0bp7.5bp
26.7bp15.9bp137.0bp

2nd Subordinated bond3nd Subordinated bond

10/13/2020
10/4/2022

10/19/2056
10/11/2057

36
35

45.0
50.0

1.170%
1.360%

127.1bp130.0bp120.0bp-

Total Bond Balance

-

-

-

253.0

-

-

-

■ Bond redemption schedule （Billions of yen）
30.0

25.0

23.0

25.0
20.0
15.0
10.0

10.0

10.0

10.0

FY2026FY2027

FY2028

10.0

10.0

10.0

5.0
0.0
FY2023

FY2024FY2025*Excluding subordinated bonds

FY2029FY2030

FY2031

FY2032

FY2033

FY2034FY2035

FY2036

FY2037

FY203843

Consolidated Balance Sheet for FY2023 First Half Period（millions of yen）

Assets
Account name

Liabilities

FY2022As of Mar-31,2023

FY2023As of Sep-30,2023

278,524
16,018980
2,000
59,763

184,362
17,005
1,930
97,210△ 94,162
987
950△ 2,000
37,447

36,835△ 18

74,026△ 17

37,191
0394,103

374,518△ 19,585

changeAccount nameCurrent assets
Cash and deposits
Accounts receivable - trade
Contract assets
Short-term investment securities
Inventories
Other
Allowance for doubtful accounts

Total current assets

Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Construction in progress
Real estate in progress
Beneficial interests in real estate trust
Other

Total Property, plant and equipment

FY2023As of Sep-30,2023

15,40090,973950
7,766
19,30810,432
127,705
13,0002,965
19,481△ 4,967
36,731
12,050△ 4,801
172

1,666
38,351

1,893
31,601

226△ 6,749

174,418

207,079

32,661

253,000
1,257,097

240,950
1,249,834△ 12,050△ 7,263

95,181
1,268

98,739
1,262

3,557
△5

2,016
1,181
2,689

2,027
1,248
2,683

11
66
△6

130,864
4,928

132,958
4,324

2,093
△ 603

1,748,228

1,734,030△ 14,198

1,922,646

1,941,110

18,463-changeCurrent liabilities

Fixed assets
Property, plant and equipment
Buildings and structures

FY2022As of Mar-31,2023

Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Income taxes payable
Contract liabilities
Provision for bonuses
Other

Total current liabilities
Long-term liabilities
Bonds payable276,118

603,180

327,062

10,527
8,541

23,60011,173

13,072
2,632

490,806
161,387
381,712648,406
25,12656,079157,599△ 136,260△ 325,633

575,480
1,746

575,976
1,751

495
5

1,906,321

1,945,295

38,974Long-term borrowings
Leasehold and guarantee deposits received
Long-term deposits received
Retirement benefit liability
Provision for retirement benefits for directors
Provision for dismantling cost of fixed assets
Deferred tax liabilities
Other

Total long-term liabilities
Total liabilities

Intangible assets
Leasehold right

55,38855,745356

Goodwill

11,065

11,041

△ 24

Other

5,609
72,063

6,462
73,249853
1,185

Total intangible assets
Investments and other assets

Net assets
Shareholders' equity
Capital stock

89,50089,500Capital surplus

32,58532,585-Retained earnings

500,137

496,620△ 3,516

Treasury stock△ 11,507
610,716△ 11,507
607,199△ 3,516

20,622

22,586

1,963

952

1,170

218

59,801
22,987

109,054
22,59449,252△ 393

103,785

68,132△ 35,652

Retirement benefit asset

557

544

△ 12

Deferred tax assets

770

793

23

49,06150,2291,167

Foreign currency translation adjustment

42,64959,684

17,035△ 1,017
235,946△ 1,008250,341

9
14,395Remeasurements of defined benefit plans△ 317
63,906△ 275
83,16542
19,2592,214,331

2,268,887

54,555Investment securities
Equity investments
Long-term loans receivable

Other
Allowance for doubtful accounts

Total investments and other assets
Total fixed assets
Total assets

2,608,435

2,643,405

34,969Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on available-for-salesecurities
Deferred gains or losses hedges

Total accumulated other comprehensive income

Non-controlling interests

11,166

11,930763

Total net assets

685,789702,295

16,506

Total liabilities and net assets

2,608,435

2,643,405

34,96944

Consolidated Income Statement for FY2023 First Half Period（millions of yen）

Account nameOperating revenue

FY2022
1H（Apr-Sep）

FY2023
1H（Apr-Sep）change156,160

125,269△ 30,890

Cost of revenue from operations

103,975

91,731△ 12,244

Operating gross profit

52,18433,537△ 18,646

12,797

15,181

2,383

Selling, general and administrative
expenses

39,387

18,356△ 21,030

Interest income

Operating income

592

448

△ 144

Dividend income

110

199

89

Compensation income

963

677

△ 285

Equity in earnings of affiliates

836

822

△ 13

Foreign exchange gains

616

592

△ 23

Other

1,253

1,236

△ 16

Non-operating income

4,372

3,978

△ 393

3,877

4,287

409

Finance charges and fees

600

698

98

Other

201

104

△ 96

Non-operating expenses

4,679

5,090

411

Ordinary income

39,08017,244△ 21,835

118

2,319

2,200
584

Interest expenses

Gain on sales of fixed assets
Gain on sale of investment securities
Other

Extraordinary income

-

584

245

627

382

363

3,531

3,167
△4

4

-

Loss on retirement of non-current
assets15

53

37

Loss on reduction of fixed assets

241

48

△ 192

Loss on business restructuring

192

-

△ 192

38

23

△ 14

492

125

△ 367

Income before income taxes

38,951

20,650△ 18,300

Income taxes - current

11,814

5,587△ 6,227

Income taxes - deferred

590

1,013

422

26,546

14,050△ 12,496

264

312

47

26,282

13,737△ 12,544

Loss on sales of fixed assets

Other

Extraordinary losses

ProfitProfit attributable to non-controllinginterests
Profit attributable to owners ofparent45

Description regarding future forecast in this report are based on information available
on the day of the announcement, as analyzed and judged by Mori Building. Therefore,
these forecasts are subject to inherent risks and uncertainty, and actual results may
differ due to changes in various factors.