MORI BUILDING CO.,LTD.
Interim Financial Report for the Fiscal Year Ending March 2022 （FY2021）
2021.11.19

0

01

Overview of Interim Financial Results for FY2021

02

Financial Forecasts for FY2021

03

Environmental Initiatives

04

Referential Materials

1Overview of Interim Financial Results for FY2021（Consolidated）（Billions of yen）

FY20201H

FY2021
1HchangeRevenue from operations

118.6

108.1

△10.4

△9%

Operating income

30.0

21.7

△8.2

△28%

Ordinary income

29.6

22.0

△7.5

△26%

Profit attributable to owners of parent

19.1

13.6

△5.4

△29%

FY2020

FY2021
1HchangeTotal assets

2,280.9

2,266.7

△14.2

△1%

Interest-bearing debt

1,427.5

1,411.6

△15.8

△1%

Equity

559.7

564.5

+4.7

+1%

Equity ratio

24.5%

24.9%

+0.4%

-

(26.7%)(27.1%)

1.89

1.87

△0.02

-

(1.65)(1.64)(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 FY2021 First Half Period■Revenue from operations（Billions of yen）

FY2020
1H

Leasing

79.1

FY2021
1H

75.9

△3.1

Property sales

27.2

14.6

△12.5

Operation of facilities

4.8

8.0

+3.1

Overseas

11.0

12.7

+1.7

Revenue from operations

118.6

108.1

△10.4

Leasing

16.5

17.6

+1.0

Property sales

19.5

8.6

△10.9

Operation of facilities

△ 3.4

△ 2.3

+1.0

Overseas

3.8

4.3

+0.5

Operating income

30.0

21.7

△8.2

Non-operating income

4.1

4.5

+0.4

Non-operating expenses

4.5

4.2

△0.2

Ordinary income

29.6

22.0

△7.5

Extraordinary income

0.7

1.2

+0.4

Extraordinary losses

3.5

1.6

△1.8

Income before income taxes

26.9

21.6

△5.2

Profit attributable to ownersof parent（Billions of yen）

118.6

change

13.6

△5.4

+1.7

108.1

△12.5
△9%

FY2020
1H

Leasing

Property Operation Overseas
sales
of facilities■Operating income

30.0

FY2021
1H（Billions of yen）

+1.0

△28%

+1.0

+0.5

21.7

△10.9

△26%

FY2020
1H

Leasing

Leasing

19.1

+3.1

△3.1

△29%

Property Operation Overseas
sales
of facilities

FY2021
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

FY2021 First Half Period ~Segment Overview （Leasing）~（Billions of yen）

FY20201H

FY2021
1H

FY2021
Forecastchange

79.1

75.9

△3.1

155.0

Leasing and management
and operation of real estate

51.0

56.4

+5.4

-

Consigned operation of realestate

15.8

10.9

△4.9

-

Contracted construction

7.5

3.2

△4.2

-

Regional heating andcooling/electricity supply

2.9

2.8

△0.0

-

Other

1.7

2.4

+0.6

-

Operating income

16.5

17.6

+1.0

32.5

■Changes in revenue from operations

151.0
5.5

10.4

8.6

8.8

31.0

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

5.1
10.0
18.9

4.8
9.5
15.9

4.7
13.6
17.9

10.5
5.0
8.7
20.2

12.4
5.6
7.3
19.4

79.1

FY2020
1H

Leasing andmanagement
and operationof real estateConsigned
operation ofreal estate

△4.2

△0.0

Contracted
construction

Regional
heating andcooling/
electricity supply

Other

75.9

FY2021
1H（Billions of yen）

（Billions of yen）

12.4
5.3
9.8

4.9
5.3
11.3

Forecast for Second Half
Period

22.8

27.6

Other

Forecast for Second
Half Period
Results

Regional heating andcooling/electricity supply

34.5

Contracted construction
74.9

+0.6

△4.9

■Changes in operating income

156.4 161.7 157.1 155.0
152.9 155.2

145.2 147.5 7.8
6.4
5.5（Billions of yen）

+5.4

Revenue from operations

133.8 5.1

■Changes in revenue from operations
for each segment

110.6 108.6 110.6 111.4 111.2 108.0
100.6 105.5

Consigned operaion ofreal estate

20.4 19.1 17.3

29.0
23.8 26.8

39.0 39.2 38.7
33.0 36.7

32.1 32.5

Leasing and management andoperation of real estate
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Forecast

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
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%

3.0%

4.3%
3.0%

0%
FY2009FY2010FY2011FY2012FY2013Mori Bld.

FY2014FY2015

5.4%
3.6%

2.0%
FY2016

2.8%

1.8%

1.5%

2.0% 1.0%

1.0%

FY2017FY2019

Office Building Market (5 central wards of Tokyo)

FY20182.0%
FY20206.4%

3.0%
FY2021
1H

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%

8.0%
7.0%

5%

9.0%

10.0%

8.4%

8.3%

FY2020

FY2021
1H

6.0%
5.0%

5.0%

FY2013

FY20145.0%

5.0%

FY2015FY20164.0%

4.0%

FY2017FY20180%
FY2009FY2010FY2011FY2012Mori Bld.

Residential Market （3A area）

FY2019Source: KEN Residential Market Report5Completed and Ongoing Projects

ARK Hills“Global Business Center”
Toranomon Hills“Cultural Heart of Tokyo”
Roppongi Hills“Modern Urban Village”
Toranomon-Azabudai
Project

6Toranomon-Azabudai Project: “Hills of the Future”• This “Hills of the future” project will boast an overwhelming scale and impact. Principal construction
started in August 2019 and is scheduled to finish in March 2023.
• As a comprehensive development covering a vast 8.1-hectare area, it will comprise diverse urban
functions, including offices, residences, a hotel, an international school, and retail and cultural facilities.
• Under the “Modern Urban Village” concept, it will be a huge open space in the heart of Tokyo filled withlush greenery. Supported by its “Green” and “Wellness” pillars, it will provide an overwhelmingly verdantenvironment where diverse people will gather in harmony with nature to form a new community where
people can genuinely enjoy life.
• th nature.

Image of central square

1990
Council of
Redeveloping
Citiesestablished (1989)

Image of view above Sakurada-dori
Ave. from Kamiyacho Station

2000
UrbanRedevelopment
Preparations
Committee
established(1993)

2010
Rezoned
redevelopment area
(2001)

Construction site (A district; September 2021)

2020

Site area

City Plan approved(Sep. 2017)

Ground area Approx. 63,900m2

Urban Redevelopment Association
approved (Mar. 2018)
Rights conversion plan
approved (Feb. 2019)
Construction
started (Aug. 2019)

Approx. 8.1ha

Planned
completion(Mar. 2023)

Total floorarea

Approx. 861,500m2

Construction
August 2019
start
Plannedcompletion

March 2023

7

Toranomon-Azabudai Project: “Hills of the Future”
Site Plan

B-1 district
Height: approx. 270m
Residences, offices, etc.

C district
Offices, residences, retailfacilities, etc.
CentralSquareImage of retail facilities

A district
B-2 district
Height: approx. 240m
Residences, hotel, etc.

Cross-section Plan

Height: approx. 330m
Residences, offices, retailfacilities, medical facility,
school, etc.

Image of food market

Image ofinternational school8Basic Agreement with Keio University
Aimed at Realizing a Healthier and More Active Society• Keio University and Mori Building concluded a basic agreement to relocate/expand the Keio University
Center for Preventive Medicine to the Toranomon-Azabudai Project site and launch the “Hills Joint
Research Laboratory for Future Preventive Medicine and Wellness.”• The center will provide preventive care meeting personalized needs, membership programs connecting
various facilities, and new preventive medicine/wellness services based on the results of joint research.
The project aims to help everyone living and working in the community to achieve true wellness, and also
contribute to a more active society in which people of all generations lead healthier lives.

Membership program (image)Message from Shingo Tsuji, President and CEO of Mori Building"Wellness, a core concept of the Toranomon-Azabudai Project, is a global theme that has gained increased importancedue in part to the COVID-19 pandemic. Collaborating with Keio University, which has been a leader in the advancementof preventive medicine through clinical and research activities, Mori Building is committed to enhancing urban wellness
and contributing to the magnetic power of Tokyo, one of the world's greatest cities."9

“Aman Residences, Tokyo” and New “Janu Tokyo” Hotel Brand
Highlight Toranomon-Azabudai Project• Mori Building and Aman, the operator of diverse world-class luxury hotels and resorts, will collaborate in
the Toranomon-Azabudai Project toward the launch of Aman Residences, Tokyo and Janu Tokyo, the lattera sister hotel brand from Aman. The opening of Janu Tokyo will mark as the debut of the luxurious Janubrand in Japan.
• Aman Residences, Tokyo will offer Aman's signature hospitality for extraordinarily peaceful lifestyles invibrant central Tokyo.
• Janu Tokyo will welcome guests from around the world with its warm hospitality, spa, fitness center, andsix restaurants, a cafe and bars for leisure and business gatherings.

Image of lounge in Aman Residences, Tokyo

Image of Aman Spa in Aman Residences, Tokyo for residents only

Message from Shingo Tsuji, President and CEO of Mori Building"Tokyo must add to its magnetic power if it is to succeed in its competition with other great cities. Mori Building isjoining hands with Aman, which operates diverse world-class resorts, to provide a world-leading residential environmentand hotel unlike anything ever seen in Tokyo, where people will achieve harmony with nature as well as connect withand inspire others through creativity. By realizing this new form of 'urban wellness,' Mori Building will enhance Tokyo's
magnetic power."

10

Toranomon Hills Area:
New International Hub and Global Business Center

Toranomon
Hills
Mori Tower

Toranomon Hills
Business Tower
Opened in June 2020

Site area
Total floor space
Office floor space
Residential units
Retail space
Green space

Toranomon Hills
Residential Tower
Planned completion in
January 2022

Toranomon Hills
Station Tower(tentative name)Planned completionin July 2023

Approx. 7.5ha
Approx. 800,000m2
Approx. 300,000m2
Approx. 720
Approx. 26,000m2
Approx. 15,000m2

Toranomon Hills
Station on theTokyo Metro Hibiya
Subway Line
Opened in June 2020
Toranomon Hills area, October 2021

11

Toranomon Hills Area:
New International Hub and Global Business Center
Toranomon Hills Mori Tower
Completed in 2014
Ground area
: 17,069m2
Total floor space : 244,360m2
Height: 247m/52
floorsConfiguration: Offices, retail facilities,
residences, hotel,
conference facility, etc.
Toranomon Hills Business Tower
Completed in January 2020
Ground area
: Approx. 10,065m2
Total floor space : Approx. 172,925m2
Height: Approx.
185m/36 floors
Configuration: Offices, retail facilities,business incubation
center, bus terminal, etc.
Toranomon Hills Residential Tower
Planned completion in January 2022
Ground area
: Approx. 6,530m2

2015

Toranomon Hills
Business Tower
Toranomon Hills
Residential Tower

2016

2017

2019

Feb.
Jul.
Construction started
City plan decided Jan.
Redevelopment association established
Sept.
City plan decided

2020

2021

Mar.
Nov.
City plan decided
Construction started
Nov.
Redevelopment association establishedJul.
Construction started

Sept.
Completion

2022

2023

(tentative name)Planned completion in July 2023
Ground area
: Approx. 13,960m2

Jan.
Completion

Mar.
Construction started

Toranomon Hills
Station Tower(tentative name)SHINTORA-DORI
CORE

2018

Total floor space : Approx. 121,000m2
Height: Approx.
220m/54 floors
Configuration: Residences, retail facilities,
parenting support facilities,
etc. Tower
Toranomon Hills spa,
StationJan.
PlannedCompletion
Jul.
PlannedCompletion

Total floor space : Approx. 253,210m2
Height: Approx.
266m/49 floors
Configuration: Offices, commercial
facilities, hotel, businessmultifunctional complex,
etc.

12

Toranomon Hills Residential Tower as a World-class Residence Toranomon Hills Residential Tower will be the largest-level residential building in its area, offering some

550 residential units. Mori Building will apply its expertise in the housing business to provide a premiumquality residence unique in Tokyo.
 Accessibility within the area will be enhanced with direct connections to nearby Mori Tower and BusinessTower via pedestrian walkways.
 The 54-story, 220-meter building will become the tallest residential tower in Japan.

Image of lower levels

Image of residential unit

Residences(12F-54F)

Serviced apartments(4F-11F)
International
Preschool (2F)

Retail facilities
and spa (1F-3F)

Ground area

Approx. 6,530m2

Total floor space

Approx. 121,000m2

Construction start

March 2017
January 2022

Planned completion

Residence entrance

Construction site (October 2021)

13

Toranomon Hills Station Tower (tentative name) The tower will have a plaza that connects conveniently to Toranomon Hills Station on the Hibiya Subway

Line. A multilayer (underground, ground level and elevated deck) pedestrian network will be developed inconjunction with surrounding projects.
 The building will be a 266m, 49-story skyscraper offering offices, retail facilities and a hotel.
 The top floor of the A-1 district’s structure, a multifunctional complex equipped for diverse business events,
exhibitions and dining, is expected to become Tokyo’s focal point for business and innovation.

A-1
district
Multifunctional
business
complexConstruction site (October 2021)

Offices

A-4
district

A-3
district

A-3
district

Offices
OfficeA-1 district

Ground area
Total floor space
Construction start
Planned completion

2

Approx. 13,960m

Approx. 253,210m2
November 2019
July 2023

Hotel

Offices

A-2
district
Toranomon
Hills
Mori Tower

Area map

Deck
Groundlevel To
level
Toranomon
Hospital&
Akasaka areaResidences

Retailfacilities

A-2
district
Route
1
expre
ssway

Retailfacilities

Plaza

Toranomon Hills
StationRetailfacilities
To Toranomon
Hills Mori Tower& Shimbashi
area
Plaza

14

FY2021 First Half Period ~Segment Overview （Property sales）~■Real estate sales business（Billions of yen）

FY20201H

FY2021
1H

FY2021
ForecastchangeRevenue from operations

27.2

14.6

△12.5

49.0

Real estate sales business forinvestors

23.8

9.2

△14.5

-

Residential sales business forindividual customers

3.4

5.4

+1.9

-

19.5

8.6

△10.9

26.0

Operating income

Toranomon Hills Mori Tower■Changes in revenue from operations■Residential sales business（Billions of yen）

77.2
66.1

14.1

70.0
16.1

9.1

20.3

43.2

32.7

137

12.1

0.9

33.6
0.8

58.7 58.2
57.1
44.9
8.8

63.0

56.9

53.9
42.2

38.3

44.4

45.0

49.0
39.6 40.6 41.9
7.5

8.1

4.6

Forecast for Second
Half Period
Residential sales forindividual customers
Real estate sales forinvestors

36.1

32.1 32.4

37.2

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

ARK Hills Sengokuyama
Mori Tower

15

FY2021 First Half Period ~Segment Overview（Operation of facilities）~（Billions of yen）

FY20201H

FY2021
1HchangeFY2021
Forecast

Revenue from operations

4.8

8.0

+3.1

22.5

Hotels

2.4

5.3

+2.8

-

Membership clubs

1.7

1.6

△0.0

-

Golf courses

0.6

0.9

+0.3

-

Operating income

△ 3.4

△ 2.3

+1.0

△ 2.0

■Major facilities operated by Mori Building Grand Hyatt Tokyo

Presidential Suite Andaz Tokyo

Andaz Sky Suite

16

FY2021 First Half Period ~Segment Overview （Overseas）~■Changes in revenue from operations（Billions of yen）
（Billions of yen）

FY20201H

FY2021
1HchangeFY2021
Forecast

Forecast for Second Half
PeriodHotels, etc.

35.2

Revenue from operations
Offices

11.0
9.1

12.7
10.0

+1.7
+0.8

26.5

5.2

-

Hotels, etc.

1.8

2.7

+0.8

-

Operating income

3.8

4.3

+0.5

9.0

6.3

7.2

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", observatory
facilities, etc.

29.9

6.9

30.0
6.9

Offices

28.5
6.9

26.6 27.2
5.2

6.1

24.0

24.2

23.0

21.6

21.3

21.0

14.2

10.7

26.5
23.7

24.1

5.1

4.3

5.8

5.7
8.7

31.2

20.1

17.9
14.4

Offices

30.3

18.5 19.7

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

9.0

3.8
0.5

0.2

△1.0
Shanghai World Financial Center
Completed in August 2008

Park Hyatt Shanghai

Observatory (Sky walk 100)474m above the ground

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

17

Mori Building’s First Development in Southeast Asia:

The Jakarta Office Tower Project (tentative name)
 Mori

Building’s first development in Southeast Asia will offer
premium-grade facilities in Jakarta, encompassing 58 stories and
190,000m² floor space in a 266m tower.
 It will be ideally located next to Semanggi Flyover on Sudirman
Street, the main thoroughfare in the central business district.
 Leveraging Mori Building’s urban-development expertise cultivated innumerous projects in Tokyo and Shanghai, the project will contribute
greatly to Jakarta’s ongoing evolution and development as a rapidly
growing international city.

Image of building entrance

Planned area

Location

Jakarta, Indonesia

Ground area

8,088m2

Total floor space

190,000m2
July 2017

Construction start
Plannedcompletion

Image of office entrance

Image ofcommercial facilities

Goldentriangle
(CBD)

2022
Location in Jakarta

Construction site (September 2021)

18

Summary of Consolidated Balance Sheet for FY2021 First Half Period
2,280.92,280.9

2,266.72,266.7

369.3

353.7 353.7

21.0 21.0
Inventories
Other current assets38.3 38.3

28.1 28.1
40.2 40.2

369.3
Cash and cash equivalents

Property, plant and1,608.41,608.4
equipment

Intangible assets72.9
Investments and
170.8
other assets

2,280.92,280.9 （Billions of yen）

225.9 225.9

235.9 235.9
Bonds payable

1,185.71,185.7

1,191.51,191.5
Borrowings

280.3 280.3

284.0 284.0
Other liabilities

564.5 564.5

Equity559.7 559.7

1,596.71,596.7

73.5

72.9

73.5

170.8

174.2 174.2

FY2020
As of Mar-31,2021

2,266.72,266.7

10.1

FY2021
As of Sep-30,2021

10.1

9.6

9.6Non-controlling interests

FY2020
As of Mar-31,2021

19

Status of Interest-bearing debt for FY2021 First Half Period
1,401.8

1,427.5

1,411.6

210.0

235.9

225.9

1,057.8

1,058.2

1,025.8（Billions of yen）

Bonds payable
1,146.3

1,144.5

1,140.0

Long-term borrowings
Short-term borrowings
Net interest-bearing debt
Cash and cash equivalents

45.5

47.0

45.7

376.0

369.3

353.7

FY2019FY2020

FY20211H

20

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

2.93

2.96
2.86

1,000.8 1,008.2 1,007.8

2.95

937.1

2.65

858.5

688.0

677.0

694.8

709.5

688.2

2.31

851.5

853.1

859.4

1.97

1.96

1.93

845.4

1.75

1.82

1.82
1.65

1.64

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

Net DER

21

23.9%

23.5%

24.0%

（Billions of yen）

Status of Equity （Ratio） for FY2021
First Half
22,102 Period
22,003
20,898

23.9%

23.5%

2,200.3
2,089.8

23.5%
15,985

24.5%

24.9%

2,280.9

2,266.7

23.9%

24.0%

16,74622,003

16,803
22,102

20,898（Billions of yen）

Liabilities, etc.

（Billions of yen）
EquityLiabilities,
Equity ratioetc.

1,674.6

1,598.5

1,721.2

1,702.2
Liabilities, etc.
Equity15,985
4,912

16,746
5,257

16,8035,299

FY2018FY2019FY2020
1H

525.7

491.2

5,257

4,912

FY2018FY2019FY2018559.7

FY2020FY2019Equity ratio
EquityEquity ratio

564.5
5,299

FY2021
1H

FY202022Changes in Equity （Ratio）※ After considering equity capital attributes of hybrid securities（Billions of yen）

26.73%
24.75%

20.98%

23.88% 23.57%

24.31%

24.70% 25.03%

609.7

21.68%

21.11%
19.82%

19.45%

27.11%

614.5

550.7
516.2

19.92%

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
1H
EquityEquity ratio

23

01

Overview of Interim Financial Results for FY2021

02

Financial Forecasts for FY2021

03

Environmental Initiatives

04

Referential Materials

24Financial Forecasts for FY2021■Revenue from operations（Billions of yen）

FY2020Results

Revenue from operations

FY2021
Forecast（Billions of yen）

157.1 155.0

change

230.0

247.0

+16.9

Leasing

157.1

155.0

△2.1

Property sales

41.9

49.0

+7.0

FY2020Results

41.9

Operation of facilities

12.9

22.5

49.0

+9.5
12.9

Overseas

24.1

26.5

+2.3

50.9

52.0

+1.0

Leasing

32.1

32.5

+0.3

Property sales

28.1

26.0

△2.1

Operation of facilities

△ 5.7

△ 2.0

+3.7

8.4

9.0

+0.5

48.5

49.0

+0.4

Operating income

Overseas
Ordinary income
Profit attributable toowners of parent

Leasing

Property sales■Operating income

32.1 32.5

FY2021
Forecast

22.5

Operation offacilities

24.1 26.5

Overseas28.1 26.0

8.4 9.0

31.4

34.0

+2.5
△ 5.7 △ 2.0
Leasing

Property sales

Operation offacilities

Overseas25

01

Overview of Interim Financial Results for FY2021

02

Financial Forecasts for FY2021

03

Environmental Initiatives

04

Referential Materials

26

Urban Greenery
Contributing to large-scale urban greenery• Beginning with ARK Hills in 1986, Mori Building has been implementing large-scale urban greenery initiatives.
• As of 2020, green areas at Mori Building’s major properties totaled 9.55ha.
• These green areas are expected to expand due to future developments. With the completion of the Toranomon-Azabudai
Project and the Toranomon Hills Station Tower (tentative name) in 2023, it is to reach approximately 12ha.

12ha

8.98ha9.19ha

2012

2014

2017

ARK Hills Sengokuyama
Mori Tower

Toranomon Hills
Mori Tower

8.35ha9.55ha6.91ha3.04ha1986
ARK Hills

1.15ha1.54ha

1990

1995

2001

2003

Atago Green Hills

Roppongi Hills

2006
Omotesando Hills

Green coverage rate
Improving the Green Coverage Rate(%)
To assess the overall amount of greenery, since2006 we have conducted green coverage rate*1
surveys to measure the percentage of greened land.
The green coverage rate and total greened area in
ARK Hills, Roppongi Hills, and other facilities
managed and operated by our company has been
increasing annually, indicating that our urban
development contributes to the promotion of urban
greening.

2020 2023

Toranomon Hills
Business Tower

Toranomon-Adabudai Project
Toranomon Hills Station Tower (tentative name)Minato *2
Wardaverage

Average green
coverage rate of
the Hills
complexes at left

Toranomon
Hills

ARK Hills
Sengokuyama
Mori Tower

Roppongi
Hills

Motoazabu
Hills

Atago Green
Hills

ARK Hills

Notes*1 Green coverage rate= greened area/site area x 100%
In accordance with the Tokyo Municipal Green Coverage Rate Manual,
we use aerial photographs as the basis for calculations.
*2 Source of Minato Ward average green coverage rate:
9th Minato Ward Survey of Greenery Status, issued March 2017

Countermeasure to Urban Heart Island Phenomenon
From thermal images (ThermoMap) around Roppongi Hills,
it was found that during the day, the surface temperature ofgreened spaces was 5°C to 15°C cooler than the asphaltof surrounding roads. An increase in green areas where
cities and nature coexist in harmony not only provides
people with places for relaxation, but also leads tomitigation of the heat island phenomenon.

Surface temperatures at Roppongi Hills are 5℃ to 15℃
lower than those of surrounding areas.

27

Utilization of Renewable Energy
Excerpt from press release
issued by Mori Building on September 2, 2019:

Mori Building Commences Supply of Electricity
from Renewable Sources to Roppongi Hills
Aiming to promote the realization of low-carbon urban environments
Compliant with global corporate initiatives such as RE100

Mori Building has begun to supply electricity from renewablesources to tenants in the Roppongi Hills Mori Tower in Tokyothrough the utilization of Japan’s non-fossil fuel energy value
trading market, the first initiative in Japan by an office leasing
company to supply electricity from renewable sources to its
tenants. This was made possible by the fact that Roppongi
Hills has its own energy plant and a registered electricity
retailer, Roppongi Energy Service Co., Ltd., that operates theplant.
The supply of 100 percent renewable energy

Customers supplied non-fossil energy by Mori Building(as of November 2021):■Roppongi Hills Mori Tower
8 cases■Toranomon Hills Business Tower
5 cases
Note: Includes planned cases

In addition to the above, all electricity to be supplied in
the Toranomon-Azabudai project will be renewable energy,
compliant with "RE100" (100% renewable energy).
Fossil-fuel electricity suchas fire power(CO2 emissions during
power generation)

Fossil-oriented
electricity
such as fire power

Evidence of provision andtransfer of renewable energy
Duration
DD/MM/YY – DD/MM/YY
Amount of energy
consumption
XX kwhRenewable energy(no CO2 emission during
power generation)

Source of electricity
Solar power, wind power, etc.

Non-fossil
certification

Water
power

Wind
power

Renewable energy【Area】
Electricity

Area
EnergyCenterCogeneration
system anddistrictheating andcooling

Office andRetail Facilities

Heat

Electricity

Residence

Solar powerNon-fossil energy
trading market

After the completion of the Toranomon-Azabudai
project, the renewable energy ratio* of the Mori
Building Group is expected to be approximately 30%.
*Proportion of renewable energy to all electricity used by Mori Building
Group in Japan, including projected energy provision at Roppongi Hills andToranomon Hills Business Tower

28

Mori Building and Tokyo Government to Recover
Thermal Energy from Sewage for Heating and Cooling Mori

Building and the Tokyo Metropolitan Government’s Bureau of Sewerage have agreed to work on
providing thermal energy recovered from sewage in connection with the Toranomon-Azabudai Project.

 Sewage contains thermal energy that is conventionally lost when the sewage is dumped into oceans orrivers, but now this renewable resource will be used to heat and cool buildings throughout the massive
Toranomon-Azabudai Project. The thermal-energy recovery process, which has a low environmental impact,
is expected to contribute to energy conservation and carbon-emissions reduction in urban areas.

 This will be the first time in Japan to utilize thermal energy recovered from sewage for community heating

and cooling by using heat-exchange mechanisms installed in sewerage pipelines.

Extracting Thermal Energy from Sewer Pipe
Office buildings, etc.

Heat pump

Transference ofrecovered heat

Heat exchanger in sewerage pipeline (image)

Recovered heat helps
to air condition buildings

Sewer
pipe
Heat exchanger installed
in sewer pipe to recover heat(Source: website, Bureau of Sewerage, Tokyo Metropolitan
Government)

Utilizing temperature differences(source: Bureau of Sewerage, Tokyo
Metropolitan Government)

29

Environmental Certifications
Policy for acquiring
environmental
certifications

When constructing flagship-level buildings, Mori Building aims to secure and maintain top-levelevaluation by having the environmental performance and urban greenery of these properties
certified under CASBEE, LEED and other recognized standards.

Major certifications (already acquired or expected in the coming future)
CASBEE for
Buildings (newconstruction)

CASBEE for Real
EstateBuilding nameConstruction
completion

ARK Mori Building

1986

S

ATAGO Green Hills
Mori Tower

2001

S

CASBEE for
Wellness Offices

LEED ND（Neighborhood
Development）

LEED O+M（Existing）

WELL

New Project Certifications

LabelsCertification received

Existing
PlannedOverseas

Roppongi Hills
Mori Tower

2003

S

ARK Hills
Sengokuyama
Mori Tower

2012

S

Toranomon Hills
Mori Tower

2014

S

Toranomon Hills
Business Tower

2020

Toranomon Hills
Residential Tower

2022

Toranomon Hills
Station Tower(tentative name)2023

ToranomonAzabudai Project2023

Shanghai World
Financial Center

2008

Hang Seng Bank
Tower

1998

Jakarta OfficeTower Project(tentative name)2022

Note: Information subject to change

Precertification received
Expected

Toranomon-Azabudai Project

・CASBEE for Buildings (new construction) - S
certification expected
・CASBEE-Wellness Office – S certification expected
・LEED ND – Platinum precertification received
・WELL – Precertification received (Platinum
certification expected after construction)

S

Platinum-level
precertification
received in
Apr 2021(Toranomon Hills Area)

S

Precertification
received in Jun 2020
（A1 District）

Expected

S

Expected

S

Expected

Platinum-level
precertification
received in
Mar 2021

Precertification
received in Mar 2020
（A District）

Platinum-level(Office)

Toranomon Hills Area

Platinum-level

Toranomon Hills Station Tower(tentative name)・LEED ND – Platinum precertification received

Precertification
received in Sep 2020

・CASBEE for Buildings (new construction) – S
certification expected
・WELL – Precertification received (Platinum
certification expected after construction)

30

Environmental Certifications
Global confirmation of Mori Building’s urban-development achievements
Mori Building’s Toranomon-Azabudai and Toranomon Hills Area projects have been precertified
under the LEED and WELL global standards. The company’s urban-development initiatives arehighly in tune with the ideals represented in these certifications.
LEED Leadership in Energy & Environmental Design

WELL Building Standard™

LEED is a globally recognized green-building rating system for architects andcities aimed at promoting environmentally high-quality developments. LEED
evaluates the environmental performance of buildings and areas in terms of
their efficient use of water and energy, indoor environments and sustainable
use of materials.

WELL is the world’s first system to evaluate buildings and indoor
environments from the perspective of the health and comfort of people wholive and work in these environments. WELL assesses indoor environments,
facilities and services with the aim of promoting human health.

Environmental achievements evaluated by LEED
• A complex with diverse urban functions• Walkable urban center built with a central square• Renewable-energy power supply• Integration of public transportation including the
new subway station• High-level energy efficiency• Emphasis on urban development in partnershipwith local landowners

Mori Building became the first in Tokyo to receive precertification in
LEED’s top-level Platinum category. The acquisition of Platinum-level
precertification is an exceptional case for a large-scale projectsituated in an urban center.

Health achievements evaluated by WELL
• Urban redevelopment following the conceptof each project• Offering central Squares with substantial
greenery• Indoor environments with excellent air
quality through use of air conditioners
equipped with high-performance filters• Cafes serving healthful meals• Layouts featuring central squares andelevated decks to promote exercise

The Toranomon-Azabudai Project’s A District and Toranomon Hills
Station Tower’s (tentative name) A-1 District received WELL Platinum
Precertifications. Once completed, both projects are expected toobtain Platinum certifications. The A District of the ToranomonAzabudai Project is the world’s largest precertified property.

31

01

Overview of Interim Financial Results for FY2021

02

Financial Forecasts for FY2021

03

Environmental Initiatives

04

Referential Materials

32

Health and Productivity Management

Health and Productivity
Management

Mori Building has been certified as a Health & Productivity Management
Outstanding Organization FY 2021 (large enterprise category)Health and Productivity Management Declaration
Mori Building carries out health and productivity management activities from the perspective of employee
health management as a business strategy aimed at ensuring that each employee remains physically andmentally healthy to allow them to work enthusiastically. By maintaining and enhancing health, the company
reinforces the vitality and performance of both individual employees and the company overall for further
growth and development. Also, Mori Building fulfills its social mission to revitalize people and businesses
through the work of creating and developing cities. Mori Building continues to advance the development of
cities where residents, workers and visitors can spend their lives in good physical and mental health.

Management Structure
Mori Building’s president and CEO oversees groupwide health and productivity management as a businessmatter. In addition, the Human Resources Department, Health Office & Company Doctor, which also serve as
the Health and Productivity Management Promotion Secretariat, cooperate with the Working Style Reform
Committee, employee representatives and the Health Committee to develop measures for maintaining andenhancing employee health.
Head of Health and Productivity
Management Promotion

Health andProductivity Management
Promotion Secretariat

President and CEO

Human Resources
Department

Working Style
ReformCommittee

Collaboration

Health Office &Company Doctor

Employeerepresentatives

HealthCommittee

33

Portfolio （Major Properties）
1

Name of theproperty
Location
Completion date
Number of floors

ARK Mori Building

Hang Seng Bank Tower

Akasaka, Minato-ku
March 1986
37 above ground4 underground

Pudong , Shanghai

April 1998
46 above ground4 underground

181,833㎡

116,824㎡

7

Location
Completion date
Number of floors
Total floor area

4

Atago Green Hills
Atago, Minato-ku
July 2001

October 2001

42 above ground 42 above ground2 underground5 underground86,570㎡

Motoazabu Hills
Forest Tower

Roppongi Hills
Mori Tower

Holland Hills
Mori Tower

Motoazabu, Minato-ku
May 2002
29 above ground3 undergroundRoppongi, Minato-ku
April 2003
54 above ground6 underground

Toranomon, Minato-ku
February 2005
24 above ground2 underground45,023㎡

379,408㎡

35,656㎡

62,475㎡

98

10Jingumae, Shibuya-ku
January 2006
6 above ground6 underground

Pudong District , Shanghai

101 above ground3 underground

ARK Hills
Sengokuyama
Mori Tower
Roppongi, Minato-ku
August 201247 above ground4 undertground

34,062㎡

381,600㎡

143,426㎡

Omotesando Hills

Shanghai World
Financial Center
August 2008

6

5

MORI Tower Forest Tower

Total floor area

Name of theproperty3

2

11

Toranomon Hills
Mori Tower

Toranomon Hills
Business Tower

Toranomon, Minato-ku Toranomon, Minato-ku
May 2014
January 2020
52 above ground
36 above ground5 underground3 underground244,360㎡

172,925㎡

34

Business of the Mori Building Group

Leasing Leasing and management

and operation of realestate○ 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 ofreal estate○ 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

Operation of facilities
 Hotel & Membershipbusiness for investors
 Residential sales

business for individual
customers

club○ Mori Hospitality
Corporation
 Golf○ Shishido Golf Club
Co,. Ltd.
 Nursing home
※ Prime Stage Co,. Ltd.

Overseas Offices○ Shanghai World Financial
Center Co., Ltd.
○ Shanghai Senmao
International Real EstateCo., 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

35

Bond Issuance Policy, Bond Specification and Redemption Schedule
Corporate bonds will be issued in a flexible manner, taking into account the level of
Bond Issuanceother companies in the same industry and other factors, with a limit of 20% to 25% of
Policynon-consolidated interest-bearing debt for the time being, depending on market trends.
■ Details of bonds in issue （as of October 31, 2021）
Am o u n t o f bo n ds
issu e d（ Billio n s o f ye n ）Issu e No .

Lau n c h dat e

M at u r it y dat e

Ye ar s o f m at u r it y
（ Ye ar ）14th Bond

8/8/2014

8/14/2024

10

13.0

0.861%

34.0bp15.1bp15th Bond

2/6/2015

2/13/2025

10

10.0

0.784%

43.0bp16.4bp16th Bond

4/24/2015

4/30/2027

12

10.0

1.002%

56.0bp30.2bp18th Bond

4/20/2016

4/25/2031

15

10.0

0.800%

75.0bp48.4bp19th Bond

7/5/2016

7/11/2036

20

10.0

0.830%

78.0bp66.4bp21st Bond

2/10/2017

2/16/2027

10

10.0

0.440%

34.5bp10.0bp22nd Bond

3/2/2018

3/8/20235

10.0

0.180%

30.1bp

2.9bp

23rd Bond

5/11/2018

5/17/2038

20

10.0

0.970%

44.7bp28.0bp24th Bond

8/10/2018

8/16/2028

10

10.0

0.460%

35.0bp7.5bp

25th Bond

7/25/2019

7/31/2029

10

10.0

0.340%

48.6bp26.7bp26th Bond

11/8/201911/14/2029

10

15.0

0.320%

37.0bp15.9bp

1st Subordinated bond

1/17/2019

1/31/2056

37

50.0

1.430%

158.0bp137.0bp

2nd Subordinated bond 10/13/2020

10/19/2056

36

45.0

1.170%

127.1bp120.0bp

-

-

213.0

-

-

-

Total Bond Balance-

C o u po n
In t e r e st

Bp again st
go ve r n m e n t bo n ds

Bp again st
SW AP■ 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

10.0

FY2026FY2027

FY2028

10.0

10.0

10.0

5.0
0.0

FY2022

FY2023

FY2024FY2025*Excluding subordinated bonds

FY2029FY2030

FY2031

FY2032

FY2033

FY2034FY2035

FY2036

FY2037

FY203836

Consolidated Balance Sheet for FY2021 First Half Period（millions of yen）

Assets
Account name

Liabilities

FY2020
As of Mar-31,2021

FY2021
As of Sep-30,2021

317,345
9,633

351,788-changeCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade,and contract assets, net

Account name

FY2020
As of Mar-31,2021

FY2021
As of Sep-30,2021

changeCurrent liabilities
34,443△ 9,633

Notes and accounts payable - trade
Short-term borrowings

10,19547,0697,670
45,716△ 2,524△ 1,353

Current portion of bonds payable-

10,924

10,924

22,95012,950△ 10,000

Short-term investment securities

52,0002,000△ 50,000

Income taxes payable

2,563

2,678

114

Inventories

21,05528,771

28,13929,334

7,083
562

Provision for bonuses

1,315
50,2781,336
44,88220△ 5,396△ 33
428,772△ 18
422,16815△ 6,604

134,373

115,233△ 19,139

Other
Allowance for doubtful accounts

Total current assets

Other

Total current liabilities
Long-term liabilities

Fixed assets
Buildings and structures
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

213,000

213,000-

1,144,528

1,140,020△ 4,507

81,266

84,727

3,461

1,575
1,745

1,285
1,774

△ 290
29

938
3,500

993
3,500

54
-

123,355
7,267

124,589
6,955

1,233
△ 312

1,577,178
1,711,551

1,576,847
1,692,081△ 331△ 19,470

79,50022,53979,50022,539-Treasury stock

443,610△ 11,507

445,676△ 11,507

2,065-

Total shareholders' equity

534,142536,208

2,065

10,688

9,936

△ 752

Foreign currency translation adjustment△ 489
15,134△ 635
18,773

△ 146
3,638

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

275

241

△ 33

25,60928,315

2,706

Bonds payable

Property, plant and equipment

Long-term borrowings

237,872

235,289△ 2,582

11,541
6,876

11,144
6,933

△ 396
56

Long-term deposits received

485,593
124,058

487,816
127,160

2,223
3,102

Provision for retirement benefits for directors

153,520587,222

146,990579,723△ 6,529△ 7,499

1,722
1,608,408

1,725
1,596,784

3△ 11,623

55,486
11,89655,705
11,650

218
△ 246

5,601
72,985

6,180
73,536578
551

Leasehold and guarantee deposits received
Retirement benefit liability
Provision for dismantling cost of fixed assets
Deferred tax liabilities
Other

Total long-term liabilities
Total liabilities

Intangible assets
Leasehold right
Goodwill
Other

Total intangible assets

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings

Investments and other assets
Investment securities

39,79943,3483,549

Equity investments

24,75124,80958

Long-term loans receivable

58,71660,154

1,438

Retirement benefit asset

1,065
140

1,138
105

72
△ 35

Deferred tax assets
Other

47,55846,085△ 1,472

Allowance for doubtful accounts△ 1,201△ 1,402△ 200

Total investments and other assets
Total fixed assets
Total assets

Accumulated other comprehensive
incomeValuation difference on available-for-salesecurities
Deferred gains or losses hedges

170,828

174,239

3,410

Non-controlling interests

9,691

10,124432

1,852,222

1,844,560△ 7,661

Total net assets

569,443574,647

5,204

2,280,994

2,266,728△ 14,266

Total liabilities and net assets

2,280,994

2,266,728△ 14,266

37

Consolidated Income Statement for FY2021 First Half Period（millions of yen）

Account name

FY20201H（Apr-Sep）

FY2021
1H（Apr-Sep）changeRevenue from operations

118,613108,189△ 10,423

Cost of revenue from operations

77,93874,662△ 3,276

Operating gross profit

40,67433,527△ 7,147

Selling, general and administrative
expenses

10,593

11,7301,136

30,08021,796△ 8,283

Interest income

296

392

95

Dividend income

741

156

△ 584

Compensation income

963

963

△0

Equity in earnings of affiliates

830

1,000

169

-

649

649

Other

1,279

1,408

129

Non-operating income

4,111

4,571

459

3,821

3,597

△ 224

606

583

△ 23

82

94

11

Non-operating expenses

4,510

4,274

△ 236

Ordinary income

29,68122,093△ 7,588

708

10

△ 697

Gain on sale of investment securities

47

859

811

Subsidy income

32

369

337

6

9

2

793

1,248

454

36

4

△ 31

483

-

△ 483

-

683

683

3,037

861

△ 2,176

Operating income

Gain on investments ininvestment partnerships

Interest expenses
Finance charges and fees
Other

Gain on sales of fixed assets

Other

Extraordinary income
Loss on sales of fixed assets
Loss on reduction of fixed assets
Loss on business restructuring
Loss on COVID-19
Other

Extraordinary losses

12

142

129

3,570

1,691

△ 1,878△ 5,254

26,90521,650

Income taxes - current

3,931

5,434

1,502

Income taxes - deferred

3,665

2,293

△ 1,371

19,30813,922△ 5,386

177

273

95

19,131

13,649△ 5,481

Income before income taxes

ProfitProfit attributable to non-controllinginterests
Profit attributable to owners ofparent38

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