MORI BUILDING CO., LTD.
Financial Report for Fiscal Year Ending March 2023 (FY2022)
2023.05

Toranomon Hills
Mori Tower

Opened in June 2014

Toranomon Hills
Residential Tower

Completed in January 2022

Toranomon Hills
Station Tower
Planned to open in
Autumn 2023

Toranomon Hills
Business Tower

Opened in June 2020

Toranomon Hills Station
on Tokyo Metro Hibiya
Subway Line
Opened in June 2020

Construction site of Toranomon Hills Area (April 17 2023)

0

01

Overview of Financial Results for FY2022

02

Financial Forecast for FY2023

03

Sustainability and ESG Initiatives

04

Ongoing Projects

05

Referential Materials
1Overview of Financial Results for FY2022（Consolidated）（Billions of yen）

FY2021

FY2022change YoY
JPY%

Operating revenue

245.3

285.5

+40.2

+16%

Operating income

52.7

62.8

+10.0

+19%

Ordinary income

53.7

59.9

+6.1

+12%

Profit attributable to owners of parent

42.2

43.7

+1.5

+4%

FY2021

FY2022change YoY

Total assets

2,367.0

2,607.4+240.3+10%Interest-bearing debt

1,430.9

1,602.0+171.0+12%Equity

616.6

673.9

+57.2

+9%

Equity ratio

26.1%

25.8%

△0.2%

-

(28.2%)(28.7%)

1.67

1.66

△0.00

-

(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 FY2022■Operating revenue（Billions of yen）

FY2021

FY2022+17.6

change YoY
JPY%

Leasing

155.4

170.8

+15.4

Property sales

50.2

67.8

+17.6

Operation of facilities

17.1

25.9

+8.7

Overseas

28.3

26.4

△1.8

Operating revenue

245.3

285.5

+40.2

Leasing

32.2

33.4

+1.2

Property sales

27.8

33.7

+5.9

Operation of facilities

△ 4.0

1.0

+5.1

Overseas

9.8

8.6

△1.1

Operating income

52.7

62.8

+10.0

Non-operating income

10.2

7.0

△3.1

Non-operating expenses

9.2

9.9

+0.6

Ordinary income

53.7

59.9

+6.1

Extraordinary income

11.0

4.0

△6.9

Extraordinary losses

2.3

1.4

△0.8

Income before income taxes

62.4

62.5

+0.0

Profit attributable to ownersof parent

42.2

43.7

+1.5

※depreciation

27.1

29.1

+2.0

（Billions of yen）

+8.7

+15.4

285.5
△1.8

245.3

+16%

FY2021

Leasing

Property Operation Overseas
sales
of facilities■Operating income（Billions of yen）

+5.1

62.8

+5.9
+19%

52.7

FY2022+1.2△1.1

Leasing

Property Operation Overseas
sales
of facilities+12%

FY2021+4%

Leasing

FY2022

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

FY2022 ~Segment Overview （Leasing）~（Billions of yen）

FY2021

FY2022change YoY

FY2023
Forecast

Operating revenue

155.4

170.8

+15.4

200.0

Leasing and management andoperation of real estate

114.3

120.8

+6.5

-

Consigned operation of realestate

22.1

24.5

+2.4

-

Contracted construction

7.5

8.8

+1.2

-

Regional heating andcooling/electricity supply

5.8

8.1

+2.2

-

Other

5.4

8.3

+2.9

-

Operating income

32.2

33.4

+1.2

30.0

■Changes in operating revenue■Changes in operating revenue
for each segment
+6.5

+2.4

+1.2

+2.2

Contracted
construction

Regional
heating andcooling/
electricity supply（Billions of yen）

+2.9

170.8

Other

FY2022155.4

FY2021

Leasing andmanagement
and operationof real estateConsigned
operation ofreal estate■Changes in operating income（Billions of yen）

200.0
Forecast

170.8

161.7 157.1
155.2 156.4
155.4 8.3
8.1
12.4
151.0 145.2 147.5 152.9 10.5
4.9
5.4

5.5
133.8 5.1
8.6
10.4
110.5 111.2 111.8 5.0
31.0
8.8
12.9 12.0 9.4
4.7
4.6
4.9
6.0
34.5
5.2
6.7
20.5
17.0 18.0

70.5

69.4

71.1

74.9

5.5
5.1
10.0
18.9

6.4
4.8
9.5
15.9

7.8
4.7
13.6
17.9

5.0
8.7
20.2

110.6 108.6 110.6
100.6 105.5

12.4
5.6
7.3
19.4

5.3
9.8

5.3
11.3

5.8
7.5

22.8

27.6

22.1

（Billions of yen）

Other

8.8

24.5

Forecast

Regional heating andcooling/electricity supply

Results
Contracted construction

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

Consigned operaion ofreal estate

Leasing and management andoperation of real 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 33.4

30.0

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%

6.4%
5.3%

6.0%
4.0%

4.0%

3.0%

5.4%
4.3%

3.0%

0%
FY2009FY2010FY2011FY2012Mori Bld.

FY2013

FY2014FY2015

3.6%

2.8%
1.8%

2.0%

2.0% 1.0%

FY2016FY2017

Office Building Market (5 central wards of Tokyo)

1.5%

2.0%

2.0%

FY2020

FY2021

6.4%
3.0%

1.0%
FY2018FY2019FY2022

Source: Miki Shoji Co., Ltd.

■ Vacancy rate of residential units for lease
20%

15.9%
15%

12.0%

14.0%

11.9%
9.9%

10%

9.4%

9.3%
8.4%

9.0%

7.9%

7.6%

8.6%

7.5%

8.3%
7.3%

8.4%

8.0%

7.0%

5%

9.0%

5.0%

5.0%

FY2013

FY2014

5.0%

7.0%

6.0%

5.0%
4.0%

4.0%

FY2017FY20185.0%

0%FY2009FY2010FY2011FY2012Mori Bld.

FY2015FY2016

Residential Market （3A area）

FY2019FY2020

FY2021

Source: KEN Residential Market Report

FY2022

5

FY2022 ~Segment Overview （Property sales）~（Billions of yen）

FY2021

FY2022change YoY

FY2023
Forecast

Operating revenue

50.2

67.8

+17.6

94.0

Real estate sales business forinvestors

9.2

-

△9.2

-

Residential sales business forindividual customers

40.9

67.8

+26.9

-

27.8

33.7

+5.9

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

9.1

57.1

137

12.1

0.9

33.6

32.7

58.7 58.2
20.3

43.2
0.8

67.8
67.8

44.9
8.8

63.0

56.9

7.5

8.1

4.6

40.9

53.9
42.2

50.2
41.9
39.6 40.6

38.3

44.4

45.0

36.1

32.1 32.4

37.2

Forecast

Toranomon Hills Residential Tower

Residential sales forindividual customers
Real estate sales forinvestors

9.2
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

6

FY2022 ~Segment Overview（Operation of facilities）~（Billions of yen）

FY2021

FY2022change YoY

Golf courses

FY2023
Forecast

 SHISHIDO HILLS Country Club

Operating revenue

17.1

25.9

+8.7

36.0

Hotels

11.1

18.4

+7.2

-

Membership clubs

3.9

5.2

+1.3

-

Golf courses

2.0

2.2

+0.1

-

Operating income

△ 4.0

1.0

+5.1

3.0

「BMW Japan Golf Tour Championship
Mori Building Cup 2022」」
2-5 Jun 2022

■Major facilities operated by Mori Building
Hotels Grand Hyatt Tokyo

Presidential Suite Andaz Tokyo「SHISHIDO HILLS LADIES MORIBUILDING CUP」
26-28 Oct 2022

Andaz Sky Suite

7

FY2022 ~Segment Overview （Overseas）~■Changes in operating revenue（Billions of yen）

Forecast
Hotels, etc.

35.2（Billions of yen）

FY2021

FY2022change YoY

FY2023
Forecast

28.3

26.4

△1.8

28.0

Offices

22.4

21.4

△1.0

-

5.8

5.0

7.2

-

Offices
Hotels, etc.

9.8

8.6

△1.1

8.5

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.

6.9

Offices

30.0
6.9

28.5

6.9

26.6 27.2
5.2

6.1

28.3
23.7 24.1
5.1

4.3

18.5

19.7

26.4
5.8

28.0

5.0

5.8

14.4

29.9
24.0 24.2 23.0
21.6 21.3 21.0

5.7

△0.7

31.2

20.1

17.9

8.7

Operating income

30.3
6.3

Operating revenue

Hotels, etc.

5.2

22.4 21.4

14.2

10.7

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

Forecast

Results

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

△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 FY2022
2,607.4 2,607.4
2,367.0 2,367.0
Cash and cash equivalents
268.2

268.2

Inventories
72.2
Other current assets
41.1

72.2
41.1

280.5

280.5

2,607.4 2,607.4
253.9

253.9

59.7
59.7
53.8
53.8

（Billions of yen）

2,367.0 2,367.0

213.9

213.9
Bonds payable

1,348.0 1,348.0
Borrowings
1,216.9 1,216.9

1,902.7 1,902.7
Property, plant1,698.8
andequipment

Intangible assets
75.3
Investments andother assets 211.1

1,698.8

75.3

71.9

71.9

211.1

238.5

238.5

FY2021
As of Mar-31,2022

320.3

320.4

673.9

11.1

FY2022As of Mar-31,2023

308.5

Other liabilities
308.5

673.9

616.6

Equity
616.6

11.1

10.9

Non-controlling interests
10.9

FY2021
As of Mar-31,2022

9

FY2022 Total assets（Billions of yen）

2,607.4
2,200.3

2,280.9

2,367.0

2,089.8
1,986.9
1,713.5 1,746.7

1,122.0

1,185.6

1,235.4

1,819.5

1,888.5

1,302.7

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

10

FY2022 Income Generating Assets Unrealized Gains（Billions of yen）

1,076.0
999.3

913.0
806.8
737.4

727.6

949.5

838.2

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※From the annual securities report11Status of Interest-bearing debt for FY2022
1,602.0
1,427.5

1,430.9

235.9

213.9

（Billions of yen）

253.9

1,321.4

1,162.7
1,058.2

Bonds payable
1,144.5

1,171.3

1,257.0
Long-term borrowings
Short-term borrowings

Net interest-bearing debt
Cash and cash equivalents
47.0

45.5

90.9

268.2

280.5

FY2021

FY2022369.3

FY202012Changes in Net Interest-bearing debt and Net DER※ After considering equity capital attributes of hybrid securities（Billions of yen）

1,246.4
2.93

2.96
2.86

2.95

1,112.7
2.65

1,000.8 1,008.2
937.1
2.31

858.5
688.0 677.0 694.8 709.5 688.2

851.5 853.1 859.4 845.4
1.97

1.96

1.93
1.75

1.82

1.82
1.65

1.67

1.66

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

Net DER

13

Status of Equity （Ratio） for FY2022

23.9%

2,200.3

24.5%

26.1%

25.8%

（Billions of yen）

2,607.4

2,280.9

2,367.0

Liabilities, etc.

1,933.5
1,674.6

1,721.2

1,750.3

EquityEquity ratio

525.7

559.7

616.6

673.9

FY2019FY2020

FY2021

FY202214

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

28.72%

28.17%

748.9

26.73%
24.75%
23.88% 23.57%

24.31%

24.70% 25.03%

609.7

21.68%

20.98% 21.11%

666.6

550.7

19.82%
19.92%
19.45%

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
EquityEquity ratio

15

01

Overview of Financial Results for FY2022

02

Financial Forecast for FY2023

03

Sustainability and ESG Initiatives

04

Ongoing Projects

05

Referential Materials
16

Financial Forecasts for FY2023（Billions of yen）

FY2022

FY2023
Forecast（Billions of yen）

FY2022
Results

FY2023
Forecast

170.8

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

26.4

28.0

+1.5

62.8

75.5

+12.6

Leasing

33.4

30.0

△3.4

Property sales

33.7

51.0

+17.2

Operation of facilities

1.0

3.0

+1.9

Overseas

8.6

8.5

△0.1

Ordinary income

59.9

65.0

+5.0

Profit attributable toowners of parent

43.7

47.0

+3.2

Operating income

200.0change YoY

Operating revenue

Overseas■Operating revenue

94.0
67.8
25.9

Leasing

Property sales■Operating income

36.0

26.4 28.0

Operation offacilities

Overseas（Billions of yen）

FY2022
Results

FY2023
Forecast

51.0

33.4

30.0

33.7

8.6 8.5
1.0 3.0

Leasing

Property sales

Operation offacilities

Overseas17

01

Overview of Financial Results for FY2022

02

Financial Forecast for FY2023

03

Sustainability and ESG Initiatives

04

Ongoing Projects

05

Referential Materials
18

Sustainability and ESG Initiatives

1. Mori Building’s View of Urban Development
Message from the President & CEO (excerpt)
The Mori Building group is dedicated to realizing sustainable society, developing local
communities, and contributing to the safety, health, and happiness of people throughthe business under our philosophy of "Create Cities, Nurture Cities", and continues tobe indispensable companies in the world.
Cities are the stage for all human activity.
Those who are responsible for urban development must take responsibility for the future of thepeople who live there. We are also responsible for the future of society and the Earth.
Well before the words like ESG and SDGs came into the spotlight, we had been working withlocal residents to create sustainable cities through urban redevelopment projects. ARK Hills(completed in 1986), Roppongi Hills (completed in 2003), Toranomon Hills (completed in 2014),
and many other "Hills" are testaments to our belief in and commitment to sustainability.

Tsuji, Shingo（President and CEO）

Forty years ago, when we were working on the ARK Hills redevelopment project, it was said that urban development wasdestructive to the environment and communities. However, we have turned that notion on its head. With the concept of "theVertical Garden City - a skyscraper city covered in greenery," we have created a city that is much greener, more communityoriented, and more disaster-resistant than it was before development.
Cities last for hundreds of years. Mori Building views the completion of a town or building as a beginning, not an end. We takeresponsibility for nurturing the towns we create with local residents so that they will continue to shine for decades to come. For
example, we have created a unique town management structure and organization at Roppongi Hills that is responsive to changing
era, evolving technology, ever-changing community issues, and the needs of users. Through various events and community
activities centered on this organization, we have connected people, businesses, the town, and the local community.
Azabudai Hills, which will be completed in 2023, is based on the "Modern Urban Village" concept and its two main pillars, "Green &Wellness." Due to the Covid-19 pandemic, people worldwide have become acutely aware of the importance of health and wellness,with the environment serving as the core foundation. Our project will incorporate a comprehensive system for supporting healthand wellness throughout the entire complex. Furthermore, power will be supplied 100% with renewable electricity. In sum, this will
be an innovative model for addressing pressing urban issues.
Mori Building's urban development initiatives support the harmonious coexistence of cities and nature as well as decarbonization
and resource recycling across a wide area of Tokyo, including Azabudai Hills and other Hills properties.
The responsibility for the cities and the future rests not only with our companies, but also with each and every one of ouremployees. In addition to ensuring the soundness and permanence of our company, we will focus on creating an environment andstructure that allows each and every one of our employees to devote themselves to urban development in a healthy manner, both
physically and mentally, as we further evolve urban development in the Mori Building style.

19

Sustainability and ESG Initiatives

1. Mori Building’s View of Urban Development
Sustainable urban development model

Vertical Garden City

Three missions of urban design
Environment
and Greenery

Safety andSecurity

Culture andArt

Create Cities, Nurture Cities

Citiescoexistingharmoniouslywith nature

Counteringurban heatisland
phenomenon

Environment

Low-carbon
citiesCreation ofenjoyableurban
environments

Developments Comprehensive Creation ofdisasterinnovationin collaboration
countermeasures ecosystemwithcommunities

Promotion ofart andcultureSocial20

Sustainability and ESG Initiatives

2. Major ESG Initiatives

Note: Underlined items have made major progress since the last earnings announcement

CategoryE

EnvironmentS• Large-scale greening, coexistence with nature, andprotection of biodiversity• Contributions to decarbonized societies• Establish medium- and long-term targets for greenhouse gas reduction (net zero by
2050)• Join RE100 initiative (targeting 100% renewable electricity by 2030)• Obtain SBTi certification for FY2030 target (1.5°C of pre-industrial levels) and CDP
Climate Change A-" rating in 2022

• Sustainability-related certifications• Obtain green-building certifications• Improve property valuation based on sustainability• Contributions to society through urban development• Create enjoyable urban environments• Promote urban development together with communities• Business contingency planning (disaster prevention
and building resilience)• Safety for tenants and visitors• BPC-enhancement hardware and software• Strengthen emergency-management systems and conduct comprehensive
earthquake drills• Education for office workers and tenants• Largest private-sector stockpile for disaster preparedness• Early, large-scale COVID-19 vaccinations for employees• Contributions to society through area management• Culture and art promotion• Support for innovation creation• Education support (Hills Machi-iku project, Kids workshops, etc.)• Enrich communities, including via neighborhood associations• Respect for human rights• Promotion of diversity• Human resources development• Support women’s empowerment, childcare, and nursing care
• Certifications for health management and diversity• Information dissemination and training to prevent harassment• Training in company values and by job rank, and maintaining system for
qualification acquisition• Healthy, comfortable work environments and work-lifebalance• Encourage employees to take paid leave and reduce overtime• Maintain employee health and safety management systems• Conduct events, wellness programs, etc., for employee health• Supply-chain management• Implement sustainable-procurement guidelines• Conduct periodic evaluations of suppliers• Participation in Declaration of Partnership Building• ESG information disclosure• Compliance and corporate ethics• Risk identification and management• Sustainability Committee, Environmental Promotion Committee, and Committee on
Human Rights and Societal Issues• Enhanced disclosure of ESG information via website• Maintain appropriate environment for whistleblower system

SocietyG

GovernanceInitiatives• Grow greenery and improve green coverage ratio• Mitigate heat-island phenomenon• Create bases for ecological networks

21

Sustainability and ESG Initiatives

3. Environment (1)Large-scale urban greening• Commenced large-scale greening when Ark Hills opened in 1986.
• Green coverage in major facilities totaled 10.4ha as of 2022.
• Green coverage will total some 12ha with completions of Toranomon-Azabudai Hills and Toranomon Hills Station
Tower.

Increasing the green coverage rate
Since 2006, the company has repeatedly surveyed its properties to measure their percentage ofgreened land. The green coverage rates and total greened areas of ARK Hills, Roppongi Hills andother facilities managed and operated by Mori Building have been increasing annually, with a goalof 38% coverage by 2030. Mori Building urban developments continue to contribute to the overall
greening of Tokyo.

Green coverage rate = greened area/site area x 100 %.
Calculated using aerial photographs based on the Tokyo
Metropolitan Government's Green Cover Manual.

Countering urban heat-island effectThermal images of Roppongi Hills show that the daytime
surface temperatures of greened spaces are 5°C to 15°C
lower than those of asphalt pavements in surrounding
streets. Increased green spaces where cities coexist
harmoniously with nature not only provide places to relax
but also mitigate the heat island effect.

Surface temperatures of greened spaces are 5°C to 15°C
lower than those of surrounding streets.

22

Sustainability and ESG Initiatives

3. Environment (2)Expanding ecological network adjacent to large-scale urban redevelopments

To foster a rich ecosystem in Tokyo, Mori Building is creating green areas, in addition to existing green spaces suchas the Imperial Palace grounds and Shiba Park, to serve as bases where creatures can rest as they move about thecity. This undertaking accords with the Tokyo Metropolitan Basic Environment Plan and the Minato City Greenery andWater Comprehensive Plan.

The green spaces and watershed areas of Hills properties, which are located between the Imperial Palace, Aoyama
Cemetery, and other existing large green spaces in the heart of Tokyo, serve as relay points as well as habitats forcreatures as they come and go, playing an important role as an ecological network.

Semi-endangered Tokyo Dharma
Frog in Roppongi Hills

White-eye nestingin Toranomon Hills

Japanese Pygmy Woodpecker in ARK
Hills Sengokuyama Mori Tower

23

Sustainability and ESG Initiatives

3. Environment (3)Endorsement of and participation in global initiatives

CDP

SBTi
•

GHG emissions reduction target (interim target in fiscal
year 2030) was certified as 1.5°C by the SBTi

Carbon Disclosure Project"Climate Change A-" rating in the Climate Change
category for 2022
Selected as a Supplier Engagement Leader 2022••

SBTi: Initiative to use science-based greenhouse gas emissionsreduction targets to meet Paris Agreement goals

CDP: Global-standard climate-related information disclosure
platform

RE100
•
•

Joined RE100 (100% by FY2030)
Switch to fully renewable electricity for approximately
70% of our electricity consumption in Japan, including
tenant-exclusive areas
RE100: International initiative to use 100% renewable-energy
electricity in business activities

TCFD

Task Force on Climate-related Financial Disclosures••

Became supporter
Disclosure from November 2022
TCFD: Initiative for recognizing climate risks and implementing
countermeasures in business strategies and disclosure

24Sustainability and ESG Initiatives

3. Environment (4)Reporting based on TCFD recommendations
 In April 2022, Mori Building endorsed TCFD recommendations established by the Financial Stability Board In November 2022, the company disclosed relevant information

Greenhouse gas emissions (Unit: t-CO2)

Indicators and targets

FY2019Mori Building has set interim and long-term targets for greenhouse gas
emissions in its consolidated business activities to help realize a more
decarbonized world:✓Scopes 1 & 2✓Scope 3✓Scopes 1, 2 & 3： 50% reduction by FY2030 vs. FY2019： 30% reduction by FY2030 vs. FY2019： Net zero by FY2050

Scope1

95,167

Scope2160,816

Scope3

FY2020

FY2021

84,40594,248▲11.3%▲0.97%

150,538

121,437▲6.4%▲24.5%

427,598

484,620‐+13.3%

Scope 3 greenhouse gas emissions
Interim SBTi targets

Scope
1+2

▲50%

Net zero

Scope
1+2

▲30%
Scope
3

FY2019 (benchmark)Net zero

Scope
3
FY2030(interim target)

Scope 3 category

FY2019FY2021

1. Purchased goods & services

141,826

81,613

2. Capital goods

212,183

231,801

3. Fuel- and energy-related activities(not included in Scope 1 and 2)

41,34442,0704. Upstream transportation & distribution

12,150464

5. Waste generated in operations

8,835

6,351

6. Business travel

471

506

7. Employee commuting

1,025

904

8. Upstream leased assets‐‐

9. Downstream transportation & distribution‐‐

10. Processing of sold products

‐

‐

4,505

120,911

12. End of life treatment of sold products

180‐

13. Downstream leased assets

5,080

‐

‐

‐

‐

‐

11. Use of sold products
FY2050(long-term target)

14. Franchises
15. Investments
Total

427,598 484,620*We will disclose Fiscal 2022 results on the website in the summer of 2023.

25

Sustainability and ESG Initiatives

3. Environment (5)Reporting based on TCFD recommendations
Strategies
 Determine future risks, such as extreme weather and social demands for countermeasures, and related
opportunities, then verify the effectiveness of current countermeasures to formulate future strategies.
 Identified major risks and opportunities especially relevant to the company’s business, conducted impact

analysis under scenarios based on proactive transitional policies (<2°C warmer) and current passive policies(4°C warmer), and evaluated financial impacts.

Possible risks & opportunities and financial impacts
Risks and opportunities

Financial impact

Transitional risks

Impact level1
<2°C
4°C

Term of max. Counterimpact2
measures3

Enhanced regulations for energyefficient building standards (e.g., ZEB)

Increased construction & repair costs to comply with ZEB &environmental-building regulations, etc.

Very little-

Medium tolong1

Adoption of carbon pricing (carbon taxes& emissions trading scheme)

Carbon taxes will increase prices of raw materials with highemission intensity (steel, cement, etc.) and also increase
construction costs

Some

-

Medium tolong

6Technologies

Development and diffusion of lowcarbon technologies

Increased capital expenditures to switch to newtechnologies

Very little-

Medium tolong

1MarketSoaring prices of renewable electricity

Increased procurement costs for renewable electricity

Very little-

Medium tolong

4

Reputation

Increased expectations of ESG investors
regarding climate measures

Loss of trust and withdrawal of investments (find-raisingdifficulties) due to lacking/delayed climate measures

Very little tomoderate-

Medium tolong

1, 2, 3 & 4

Intensifying natural disasters & extreme
weather (heavy rainfall, floods,
typhoons, water shortages, etc.)

Loss of business opportunities due to disasters, etc.

-

Very little

Long

5

Demand for high eco-performance (ecocertified buildings, high-efficiency
energy, etc.)

Increased sales due to higher rents paid by eco-mindedtenants and increased asset values due to investor support

Some tomoderate-

Medium tolong

1, 2, 3 & 4

Policies andregulations

Physical risks
Acute
Opportunities
Products andservices

1 Based on financial impact.
2 Short: now to 2025, Medium: now to 2030, Long: now to 2050
3 See next page26

Sustainability and ESG Initiatives

3. Environment (6)Countermeasures Against Identified Risks and Opportunities
Countermeasure

Details1

ZEB introduction••

Target ZEB/ZEH-level performance for all future buildings
Consider ZEB retrofitting for all existing buildings

2Statement of Corporate Stance•Continue to endorse and commit to initiatives (TCFD, SBT, RE100, etc.)3

Low-carbonization of operating
facilities•

Lower carbon footprints by introducing energy-saving technologies, highefficiency equipment, and renewable energy in existing buildings

4

Renewable-energy introduction
targets•

Procure stable, inexpensive renewable energy to achieve introduction targets•

5

Enhancement of disaster-prevention
capabilities of properties

Design properties based on the latest hazard maps and property/location
characteristics
Consider retrofitting according to the latest standards for possible disasters
Conduct disaster drills

6

Improved eco-performance ofbuildings

•
•
•
•
•

Promote low-carbon construction
Consider the use of steel and cement with low CO2 emissions
Require construction partners to submit CO2 emission estimates and proposals
for reduction measures when bidding for work

Focus
Area: Central Tokyo (home to Mori Building’s major properties)
Scope: Entire supply chain
Period: Now to 2050
Major scenarios<2°C proactive scenario: IEA SDS and NZE (IEA WEO2020 and 2021)
4°C passive scenario: RCP8.5 (IPCC AR6 WG1 SPM) and IEA STEPS (IEA WEO2020 and 2021)
IEA: International Energy Agency
SDS: Sustainable Development Scenario
NZE: Net-Zero Emissions by 2050
WEO: World Energy Outlook
IPCC AR6 WG1 SPM: Intergovernmental Panel on Climate Change, Sixth Assessment Report, Working Group 1, Summary for Policymakers
STEPS: Stated Policies Scenario
Analysis
Step 1. Discuss climate-change-reports and other sources to identify risks and opportunities that could significantly impact Mori Building's business.
Step 2. Predict likely outcomes for identified risks and opportunities under proactive <2°C and passive 4°C scenarios.
Step 3. Estimate financial impacts on Mori Building (including qualitative analysis of risks/opportunities that are difficult to estimate quantitatively).
Step 4. Plan appropriate measures based on findings.

27

Sustainability and ESG Initiatives

3. Environment (7)Environmental certification policy
 For flagship buildings, Mori Building aims for top-rank certification of eco-performance and greening upon

construction completion, and CASBEE, LEED, etc. certifications thereafter.

Major certifications obtained, or expected
Facility

CASBEEBuildings (newCompleted construction)

CASBEEReal Estate

ARK Mori Building

1986

S

Atago Green Hills
Mori Tower

2001

S

Roppongi Hills Mori
2003
Tower

Existing
Ongoing

2012

S

Toranomon Hills
Mori Tower

2014

S

Toranomon Hills
Business Tower

2020

Toranomon Hills
Residential Tower

2022

Toranomon Hills
Station Tower

2023

Azabudai Hills

2023

Overseas

2008

Hang Seng Bank
Tower

1998

JAKARTA MORI
TOWER

2022

Certifications of new projects
LEED ND(neighborhood
development)

LEED O+M(Existingbuildings)

LEED
BD+C/CS

WELL(New
Construction)

Certified
Precertified
Certification expectedS

ARK Hills
Sengokuyama
Mori Tower

Shanghai World
Financial Center

CASBEEWellness
OfficeAzabudai HillsⒸDbox for Mori Building Co.

CASBEE-Building (new construction): S expected
CASBEE-Wellness Office: S expected
LEED ND: Platinum-level precertified
LEED BD+C/CS: Platinum-level precertified forredevelopment area A (office/retail portion)
WELL: precertified for redevelopment area A (office/retailportion) *Platinum certification is expected after
completion of construction.

S

PlatinumGold

Toranomon
Hills Area
Project

Platinum Platinum*SS(A district)

LEED BD+C/CS and WELL acquired for office/commercial areas.
Above information subject to change.

(A-1 district)S(A district)(A-1 district)

Platinum Platinum*

Platinum(A district)(A district)

Platinum(Office)

PlatinumGoldⒸDbox for Mori Building Co.

Toranomon Hills Area Project
LEED ND: Platinum-level precertified

Toranomon Hills Station Tower
CASBEE-Building (new construction): S expected
LEED BD+C/CS: Platinum-level precertified forredevelopment area A-1 (office/retail portion)
WELL: precertified for redevelopment area A-1(office/retail portion) *Platinum certification is expected
after completion of construction.

*Platinum certification expected following completion

28

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

WELL precertifications for their office spaces and retail facilities. Once completed, both projects are
expected to obtain top Platinum-level WELL certifications.
 Azabudai Hills and Toranomon Hills both received top Platinum-level LEED ND precertifications from the
U.S. Green Building Council (USGBC).
 The Azabudai Hills (A District) and Toranomon Hills Station Tower (A-1 District) also received top
Platinum-level BD+C/CS precertification for their efficient, environmentally friendly office spaces andretail facilities. Worldwide, there are few other cases of LEED ND and LEED BD+C/CS (CS) certifications
both being obtained.
WELL=WELL Building Standard
LEED=Leadership in Energy & Environmental Design, ND=Neighborhood Development, and BD+C/CS (CS)=Building Design and Construction/Core and Shell Development

WELL Platinum Precertifications

Low-rise buildings with rooftop greenery in
Azabudai Hills (image)©DBOX for Mori Building Co., Ltd.

Oval Square at Toranomon Hills Mori Tower

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 the A District of 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.

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.

29

Sustainability and ESG Initiatives

4. Society (1)Create enjoyable urban environments and develop them together with communities
Mori Building, viewing a building’s completion not as the end but
as the beginning, steadily nurtures its surrounding community.
Under the philosophy “Create cities, nurture cities,” the company
has assembled the necessary organization, experience and knowhow to develop and manage communities in an integrated manner.
While the freshness of buildings diminishes with the passage oftime, the bonds between its occupants deepen, which is why
community
development
andmanagement
areequally
indispensable to enhancing the magnetism of Tokyo.
Crowded Roppongi Hills area
before redevelopment“Cultural Heart of Tokyo” appealing tocorporations and people

The Vertical Garden City concept underpins Mori Building’s
development of new cities. The idea is to combine fragmented
city elements in high-rise buildings that help to increase wideopen green spaces in surrounding areas. Compact, mixed-use
urban centers for work and residence concentrate complex
urban functions within walking distance, which attracts diverse
people for purposes including residence, work, recreation,
education, relaxation, and more. The result is myriad
opportunities for human interaction and collaboration. The idea
is completely opposite to the conventional concept of urban
development that differentiates and separates urban uses.

Briefing session for residents
during ARK Hills development

Supporting clean-up activity by
Roppongi Hills Residents’
Association

Hills facilities helping to nurture cities

7 steps of development
1. Conceive in termsof large city blocks

Thinking and talking with communities

3. Use 3D (incl. vertical) designs

4. Utilize low-rise areas
7. Improve disaster preparedness

5. Enhance mobility options

6. Expand road functions
2. Be mindful of the environment

30

Sustainability and ESG Initiatives

4. Society (2)Comprehensive disaster countermeasures for safety and security
Under the concept of "Cities to escape to, rather than flee from,” Mori Building takes advantage of thecharacteristics of large-scale redevelopments to create safe and secure disaster-resistant, disasterpreventative urban centers that contribute not only to the redeveloped area itself but also the surrounding
community, combining various hard and soft measures including the development of open spaces,transportation and other urban infrastructure.
Hard Measures

Soft Measures

Advanced vibration-damping devices

Disaster-prevention organizational framework
Toranomon
Hills
NakanoSuginami

Shinjuku

ARK Hills

ChiyodaShibuyaRoppongi Hills
Disaster-readinessnight watch
systemOil dampers

Unbonded braces

Stable power supply from independent power stations
Roppongi Hills has its own energy plant forelectrical power supply. The triple-redundant
system uses “city” (medium-pressure) gas,
grid power and even kerosene to ensure
power supply with a level of reliability
exceeding that of ordinary S-class buildings.

Sumida3.5km radius
200 personel incase of emergency
Chuo

Koto

MinatoAzabudai Hills

MeguroSome 1,600 Mori Building employees arepromptly deployed to an earthquake-responseorganization if a strong earthquake occurs.

Earthquake response organization

Disaster preparedness drills
In addition to general disasterreadiness training conductedcompanywide twice annually,
disaster-response personnel also
participate in training throughout theyear. Also, all employees are required
to be certified in first-aid skills.

Disaster-info system

Emergency stockpiles

Mori Building operates
its proprietary"Disaster Portal Site”
information gatheringsystemThe company maintains an emergency foodstockpile equivalent to about 280,000 meals (incl.
about 100,000 at Roppongi Hills), one of the largest
in Japan’s private sector. Blankets, medical supplies,
mechanical equipment, and portable toilets are also
stockpiled at each facility.

31

Sustainability and ESG Initiatives

4. Society (3)Culture and art promotion

Installation view: WORLD CLASSROOM: Contemporary Art
through School Subjects, Mori Art Museum, Tokyo, 2023
(Photo: Furukawa Yuya)

Mori Art Museum, a key symbol of Roppongi Hills
as the “Cultural heart of Tokyo,” enriches society
by enabling people to experience and enjoy moreart.

Collaboration with stakeholders

Roppongi Art Night at Roppongi Hills
Since 2009, this art festival has been held annually
throughout the entire Roppongi area to present adiverse range of artistic expressions in order tocommunicate the further possibilities of art insociety.

Bon Odori Dance at Roppongi Hills
Roppongi Hills residents' association holds a Bon
Odori Dance as a local community event for to"create, participate, and enjoy.“ It is working topromote community collaboration by holding thefestival at the same time as the nearby Azabu Juban
Noryo Matsuri Festival.

Educational support

Innovation-creation support

ARCH Incubation Center

Kids workshops

This large, member-based incubation center inToranomon Hills Business Tower supports business
innovation and creation originating in Tokyo andshared with the world.

Programs in cooperation with tenants and stores in
Roppongi Hills, ARK Hills and Toranomon Hills
invite experts from various fields to lead various
types of extra-curricular classes for children.

Hills Machi-Iku Project
The Hills "Machi-Iku," city nurturing project,aims to share its expertise in urban development
and the city's charms with children, the city's
future leaders, so that they can enjoy learningand thinking about how the next generation of
cities should be. Since the first project in 2007, a
total of approximately 16,000 participants.

32

Sustainability and ESG Initiatives

4. Society (4)Urban development based on the philosophy of Create cities, Nurture cities
20 years setting the standard: A brief history of Roppongi Hills
Apr. 2003

Jul. 2006

Open

Sept. 2010

KIDS’
WORKSHOPHILLS
BREAKFAST
commenced

commenced

May 2004

Oct. 2017

Apr. 2012
GREEN UP
commenced

Japan’s first
AI Automatic
Driving
Delivery Robotdemonstration

Established
Neighborhood
Association

2003

2004

17 years of milestones
until the opening

2005

2006

2007

2008

2009

Oct. 2005
Long-period seismic motion detection systemstarted full-scale operation

Nov. 1986
The area was granted“redevelopment inducement area” status
Dec. 1990
Established Roppongi 6-chomeUrban
Redevelopment Preparations Committee
Apr. 1995
Approval of the city plan

2010

2011

Jul. 2011

Supply ofsurpluselectricity
started

Sept. 2006
Established
Roppongi Art
Triangle

Sept. 1998
Establishment of Roppongi 6-chome
2007 The National
Urban Redevelopment Association approved
Art Center, Tokyoand Suntory
Feb. 2000
Museum of Art
The rights-conversion plan
openedApr. 2000
Construction started

Mar. 2009
Roppongi
Art Night
launched

Redevelopment makes thearea safe and secure
Before its redevelopment, thearea featured a difference inelevation of more than 15
meters, with a highconcentration of low-risewooden houses. In addition,
the narrow one-way streets
made it difficult for fire trucks
to enter the area, impeding
disaster prevention.

Expanding community
activities
Over the past 20 years, avariety of activities have been
undertaken. The monthly"Roppongi Cleanup" has been
held 170 times with morethan 20,000 participants, andthe "HILLS BREAKFAST"
morning talk event, whichstarted in 2010, has attracted
more than 650 speakers.

2012

2013

2014

2015

2016

Aug. 2013
Launched “e-Daps” disaster damage
assessment system
Mar. 2012
Signed an agreement with Minato City toshelter those stranded in the event of a disaster

2017

2019

2020

2021

2022

2023

Createcities toescape to,ratherthan flee
from.
Aug. 2019Japan’s first100%
renewableenergy supply
startedJul. 2013
Obtained highest CASBEE rating

2011
Seven art galleries including
PIRAMIDE opened

2018

Nov. 2019
Commenced Synecoculture
Proof of Concept Trial

2016
Complex665 opened

Nov. 2021
Bottle to Bottle
recycle demonstration
experiment started

Roppongi to become Asia’s leading art hub© 六本木アートナイト実行委員会

A community that nurtures
the town
The Roppongi Hills
Neighborhood Association wasformed by some 400
landowners who promoted theredevelopment of the area.
The association has since
been involved in a variety ofcommunity activities, fromBon festival dances toearthquake drills, that arerooted in the local community
despite its location in theheart of the city.

Providing learning
opportunities
Roppongi Hills has provided
numerous learning
opportunities for children.
Since 2011, tenant companies
have participated in thesummer KIDS' WORKSHOP,
offering programs that can
only be experienced at
Roppongi Hills. To date, morethan 40,000 children haveparticipated.

The center of Tokyo's art
scene
As a cultural center, Roppongi
operates the Mori Art Museum,and since 2009 has cosponsored Roppongi Art Nightwith the Tokyo Metropolitan
Government and otherorganizations. With aconcentration of museums
and galleries in thesurrounding area, Roppongi
has become one of Asia's
leading art centers.

More than just a rooftop
gardenThe rooftop garden of the
Keyakizaka Complex, 45
meters above ground level, isitself a damper facility thatminimizes earthquake shaking,and it also features ricepaddies, where rice is grownby local residents as acommunal activity.

Events that have become
Tokyo traditions
Events are held throughout
the year to create a lively
atmosphere in the city. The
illumination of Keyakizaka,with its white and blue LED
lights, has become anestablished winter tradition inTokyo. Around 7 million
people visit here each
Christmas.

33

Sustainability and ESG Initiatives

4. Society (5)Initiatives for employees

Supply chain management

Female advancement：
 Female employees: 32.6%
 Female managers: 7.2% (target: 10% by the end of March 2026)
 Female new joiners (including new grads & mid-career hires):
48.0%



Childcare leave： taken by 90.3% of eligible male employees and100% of eligible female employees

Under the philosophy of "Create Cities, Nurture Cities," the Mori Building
group believes that in order to further contribute to the realization of asustainable society, it is important to work throughout our entire supply
chain, including the many suppliers with whom we collaborate, fromdevelopment to operation, in the creation of cities. In June 2022, weestablished the Mori Building Group Sustainable Procurement Guidelines.



Heath-related goals in FY2023
Priority areas
Prevention of lifestyle-relateddiseases
Improvement of mental healthIndicator
Decrease of people with risk of lifestylerelated diseases

FY2023 targets
13%*Rate of people eligible for specific insurance guidance

Employee vitality*Results of stress checks

Deviation of 53

1. Loss due to absenteeism
Review of work styles(Improvement of Employee
productivity)

We have sent these guidelines to approximately 1,400 suppliers who
received multiple orders from us over the past five years, to promoteawareness of them.
 We are currently conducting a survey to confirm the status of efforts
to comply with the guidelines among suppliers that are considered tohave a particularly large impact on our supply chain. In fiscal 2022,
we conducted a survey of five general contractors that play aparticularly important role and who are working extensively on new
construction projects and found no significant problems. The results ofthe survey have been shared with each company, and we are asking
them to continue to progress their sustainability initiatives.
*Total number of absenteeism days/total number of
employees

2．Loss due to presenteeism*Research of WHO-HPQ

3．Work engagement*Results of stress checks

0.50day
30.00%
Deviation of 54

Certificates for health management and diversity

Participation in Declaration of Partnership Building

Mori Building has been certified over two consecutive years as a
“Health & Productivity Management Outstanding Organization 2023
(White 500)” for its excellent health management practices, based on
its efforts to address local health issues and the health promotion
initiatives promoted by the Nippon Kenko Kaigi (Japan health council).
 Acquisition of "Eruboshi Certification“ - Promoting female participation
and advancement
 Acquisition of "Kurumin Certification“ – Childcare support

Mori Building is participating in the Declaration of Partnership Building
formulated by the Council on Promoting Partnership Building for
Cultivating the Future, which is being managed by the Cabinet Office ofJapan and other bodies. The declaration is a statement of commitment toco-existence and co-prosperity throughout supply chains, to partnershipsthat transcend company sizes and affiliations, andto compliance with appropriate business practices
between companies and their business partners.

34

Sustainability and ESG Initiatives

5. Governance (1)Basic concept

Mori Building is committed to management transparency and the strengthening of management processes inorder to realize and maintain a sound and efficient business. Since corporate governance is one of the mostimportant processes, every effort is made to ensure that the company’s governance structure is ideally suited
to Mori Building’s business.
Corporate governance structure
Board of Directors
Eight directors (none external) well-versed in the company’sbusiness were selected, regardless of gender, for their overall
knowledge, experience and abilities.
Board of Corporate Auditors
Two of the three members of the Board of Corporate Auditors areoutside auditors, and the Board works to ensure transparency andobjectivity in management.
Internal Audit Office
Reports directly to the President and CEO, audits the internal control
system and works to further enhance the system.

Sustainability Committee
Establishes the company's policies, targets, and plans and supervises
and monitors the implementation and progress of them across theentire company.
Compliance Committee
Promotes and strengthens adherence to the internal Compliance
Manual, articulating basic policies, regulations, and codes of conduct.
Risk Management Committee
Identifies and reviews potential risks and approves remedial
measures for addressing needs companywide.

Board member compensation
Compensation for each director is determined based on acomprehensive evaluation of the director's position, businessperformance, ability, and experience.

35

Sustainability and ESG Initiatives

5. Governance (2)Issued a total of 110 billion yen in Green Bonds
Mori Building issued a cumulative 110 billion yen in Green Bonds as of the end of March 2023.
 The third series of domestic subordinated unsecured bond with interest-deferral and early-redemption options, as thecompany's third green bond issued in October 2022, has received 78 preliminary bids from investors.
 Through the Toranomon-Azabudai Project and other urban-renewal initiatives, Mori Building has demonstrated its
consistent commitment to responsible urban development and global environmental protection. Mori Building engages
in green financing to diversify its funding methods as well as contribute to a more decarbonized world.
Green bond issuance record
Name

Mori Building Co., Ltd. third series
domestic subordinated unsecured bondwith interest-deferral and earlyredemption options (green bond)Mori Building Co., Ltd. second series
domestic subordinated unsecured bondwith interest-deferral and earlyredemption options (green bond)Mori Building Co., Ltd. 26th unsecured
corporate pari-passu bond (greenbond), also known as "Mori Building
Green Bond"

Total issue

JPY 50 billion

JPY 45 billion

JPY 15 billion

Closing date

October 11, 2022

October 19, 2020

November 14, 2019

Use of proceeds

All funds for acquisition of a reserved
floor in the A District Tower of the
Azabudai Hills

All funds for capital expenditures
related to "A district" facilities of the
Azabudai Hills

All funds for capital expenditures
related to "A district" facilities of the
Azabudai Hills

Bond rating

A- (Japan Credit Rating Agency, Ltd.)

A- (Japan Credit Rating Agency, Ltd.)

A+ (Japan Credit Rating Agency, Ltd.)

Second-party
evaluator

Sustainalytics

Sustainalytics

Sustainalytics

Azabudai Hills outline
•
•
•
•
•
•
•

Official name: Toranomon-Azabudai District Category 1 Urban Redevelopment Project
Site area:
Approx. 8.1 hectares
Landscaped area: Approx. 63,900 m2
Total floor area: Approx. 861,700 m2
Buildings: Residences, offices, retail facilities, hotel, international school, central square, cultural facilities, etc.
Planned completion: 2023 (planned)
Certificates:
CASBEE-Building (new construction): S expected, CASBEE-Wellness Office: S expected,
LEED ND: Platinum-level precertified, LEED BD+C/CS: Platinum-level precertified for redevelopment area A (office/retail portion),
WELL: precertified for redevelopment area A (office/retail portion) *Platinum certification is expected after completion of construction

36

Sustainability and ESG Initiatives〈Reference〉 ESG Data
E (Environmental): Major KPI & data

Water Resource Related Data
Indicators

Greening-related Data (Ggreen coverage Coverage ratioRatio)
Indicator

Numerical target

Target year

2020

2021

Overall green coverage ratio (%)

Approx. 38%

2030

36.2

36

Total green coverage area (ha)

―

―

9.6

9.5

Surveyed areas* (quantity)

―

―

10

10

*ARK Hills, ARK Hills Sengokuyama Mori Tower, ARK Hills South Tower, Atago Green Hills, Motoazabu Hills, Holland
Hills, Omotesando Hills, Roppongi Hills, Toranomon Hills Mori Tower and Toranomon Hills Business Tower(Completed by 2021 as to all aforementioned); Toranomon Hills Residential Tower (Completed in 2022); Toranomon
Hills Station Tower (Completion scheduled for 2023); and Azabudai Hills(Completion scheduled for 2023)

Greening Certification Data (Acquired)
Acquisition

Validity
PeriodARK Hills Sengokuyama
Mori Tower

2012

Sep-27

AAA

Toranomon Hills Mori Tower

2015

Jan-25AAA

ARK Hills

2013

Mar-25―

Roppongi Hills

2013

Mar-25―

Toranomon Hills Mori Tower

2017

Mar-23―

CertificationJHEP

SEGES (Urban oasis)

EDO-MIDORI Registration Green Space

Property

ARK Hills Sengokuyama
Mori Tower

2017

Rank, etc.

Not
stipulated
Excellent(Submission
green spaceof Annual
reporting)

JHEP (Japan Habitat Evaluation and Certification Program) certification: This program quantitatively evaluates and certifies
initiatives contributing to the preservation and restoration of biodiversity.

RE100 Progress
Scope

TargetElectricity consumption (MWh)Amount of renewable electricity (MWh)100% by FY2030

Renewable energy consumption rate

FY2019FY2020

FY2021

391,259

371,537

378,781

5,049

7,497

9,114

1.30%

2.00%

2.40%

Primary Energy Consumption (Act on the Rational Use of Energy, Reported by Mori Building):
KPIs & Actuals
Scope

Target

FY2019FY2020

FY2020

FY2021

1,627,806

1,151,144

1,109,296―

1,728,905

1,200,619

1,188,647

Equal to that of previous FY
or less

0.73

0.52

0.49

Target (KPI)

FY2019FY2020

FY2021

Reduced from previous FY

5.28

3.05

3.16

Sewage consumed (m³)
Water usage per unit (m³/m²)

Volume of Waste and Volume of Waste Recycled
Indicators
Volume of waste per m² (Kg/m²)
Total waste (Tons)

―

7,419

4,765

4,840

Waste recycle rate (%)

75%

50.20%

53.90%

52.50%

Volume of waste recycled (Tons)

―

3,724

2,570

2,545

Volume of non-recycled waste (Tons)

―

3,695

2,195

2,295

S (Social): Major data
Human Resources Related Data (%)
TargetTarget year

FY2019FY2020

Ratio of female managers

10

FY20255.8

6.6

FY2021
7.3

Ratio of female employees to all employees

―

―

32.7

33.1

34.2

Ratio of female employees among new graduate

―

―

28.9

36.8

36.4

Employees with disabilities

―

―

1.99

2.19

2.05

Acquired annual paid leave taken

―

―

74.1

62.1

69.5

Employees taking childcare leave (Male)

―

―

78

76

80

Employees taking childcare leave (Female)

―

―

100

100

100

Employees returning to work after childcare leave

―

―

100

100

100

Health-related Data
TargetTarget year

FY2019FY2020

FY2021

Health checkup rate (%)

―

―

100

100

100

Stress check screening rate (%)

―

―

95

95

98

Smoking rate (%)

―

―

17

15

13

less than 5

FY20239

6

5

FY2021

FY2021―

11,651

10,271

10,2291% reduction/year

0.03070.328130.03247

Year-on-year reduction rate (%)

―

―

▲6.87

1.04

Greenhouse Gas Emissions (Tokyo Metropolitan Ordinance on Environmental Preservation,
Reported by Mori Building): KPIs and Results
Scope

FY2019―

Employees on leave (person)

Energy consumption rate (kL/m²)

Energy consumption (kL)

Target (KPI)

Clean water consumed (m³)

Target

FY2019FY2020CO2 intensity (kg CO2/m²)

―

79.09

67.3

69.57

Year-on-year reduction (%)

―

3.2

16.4

▲2.72

Safety-related Data
TargetTarget year

FY2019FY2020Occupational accidents (excl. commuting accidents)

0

FY20238

2

1

Lost time incident rate (%)

―

―

0.31

0

0.29

Average overtime hours worked per month (h)

―

―

26.5

22.7

26.9

Employees receiving training on occupational health and safety

―

―

57

49

44

FY2021

37

01

Overview of Financial Results for FY2022

02

Financial Forecast for FY2023

03

Sustainability and ESG Initiatives

04

Ongoing Projects

05

Referential Materials
38

Ongoing Projects

11

1

10
12

9

5

3

6

39

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

12

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㎡

Toranomon Hills
Residential Tower
Atago,Minato-ku
January 2022
54 above ground4 underground
121,000㎡

40

Toranomon Hills Area Project

New International Hub and Global Business Center
Site area

Approx. 7.5ha

Total floor area

Approx. 792,000m2

Offices

Approx. 305,000m2

Residences

Approx. 730 units

Retail facilities

Approx. 26,000m2

Green area

Approx. 21,000m2

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 Business Tower
Opened in June 2020
Ground area
: 10,065m2
Total floor space : 172,925m2
Height: 185m/36 floors
Configuration: Offices, retail facilities,business incubation
center, bus terminal, etc.

2014
Toranomon Hills
Mori Tower
Toranomon Hills
Business Tower

Toranomon Hills

2015

2016

2017

2018

2019

2020

2021

2022

2023

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

Residential Tower

Toranomon Hills
Station Tower

Toranomon Hills Station●Mar.City planning approval●Nov.Redevelopment association established●Nov.Construction started●Jun.Opened●Jul.Completion●Autumn
Planned to open

Toranomon Hills Residential Tower
Completed in January 2022
Ground area
: Approx. 6,535m2
Total floor space : Approx. 121,000m2
Height: Approx. 220m/54 floors
Configuration: Residences, retail facilities,
parenting support facilities,
spa, etc.
Toranomon Hills Station Tower
Planned to open in Autumn 2023
Ground area
: Approx. 13,960m2
Total floor space : Approx. 236,640m2
Height: Approx. 266m/49 floors
Configuration: Offices, retail facilities,
hotel, interactive
communication facilities, etc.

41

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.

Cross-section plan (image)

Station Atrium (image) ©DBOX for Mori Building Co., Ltd.

42

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. This elevatedwalkway, 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 by pedestrians tocross 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 barrierfree access to Toranomon Station on the Tokyo Metro Ginza Line, Toranomon Hills Station on the Tokyo 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 by functioning as
an additional square connecting people in Toranomon Hills.


T-DECK

T-Deck across Sakurada-dori Avenue (image) ©DBOX for Mori Building
Co., Ltd.

Station Tower site plan

43

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 by disseminating new experiences, values, content and information created through collaborations
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 will also
feature a laboratory on the 8th floor where outstanding talent will come together and conduct joint
research on future urban experiences.
 In addition, the tower‘s rooftop will offer a sky garden, a pool, and two restaurants curated by world-classchefs, including a concept restaurant supervised by Kei Kobayashi, the first Asian chef to earn three
Michelin stars in France.

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

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

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

TOKYO NODE LAB (image)©DBOX for Mori Building Co., Ltd.

TOKYO NODE SKY GARDEN & POOL
(image) ©DBOX for Mori Building Co., Ltd.

44

Toranomon Hills Station Tower

Hotel Toranomon Hills: Tokyo's First Unbound Collection by Hyatt 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 ranging from 27m2 to 34m2.
 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 inspiredby the aesthetics and practicality of Japanese architecture.

Room (image)

The Lounge (image)45

Toranomon Hills Station Tower

Retail Facilities Centered on T-Market
 Toranomon Hills Station Tower's retail space, measuring about 14,400m2, will occupy nine floors (B2−7th),

offering some 80 stores that support the work and lives of global players including office workers andresidents.
 In addition to T-Market, which will be connected directly to the Station Atrium plaza, other highlights will
include the area's first large-scale select store by BAYCREW'S, a major Japanese select store, and Tokyo'slargest (about 2,000m2) comprehensive wellness facility, which will be operated by Tokyu Sports Oasis.
 T-Market restaurants will feature high-quality, reasonably priced menus, many curated by acclaimed chefs
and pâtissiers, including some with Michelin credentials.
 There will also be a variety of unique stores that meet lifestyle and beauty needs. As a result, the overall
floor space of retail facilities in the Toranomon Hills area will expand to about 2.5 times the scale prior toredevelopment

T-Market (image)

46

Azabudai Hills

Green & Wellness -Modern Urban Village This “Hills of the Future” project will boast an overwhelming scale and impact. Construction is underway

and scheduled for completion in 2023.
 The skyscraper, emerging from the lush green environment surrounding its base, will realize the conceptof a “Vertical Garden City,” integrating diverse urban functions including offices, residences, a hotel, aninternational school, and retail and cultural facilities.
 Under the “Modern Urban Village” concept, Azabudai Hills will create a vast open space filled with richgreenery in the heart of Tokyo. Supported by its “Green” and “Wellness” pillars, it will provide an
exceptionally verdant environment where diverse people will gather in harmony with nature to form a newcommunity where people can genuinely enjoy life.

Image of Central square
1990年
1990
Council of
Redeveloping
Citiesestablished (1989)

2000年
2000
UrbanRedevelopment
Preparations
Committee
established(1993)

Construction site (April 18, 2023)©DBOX for Mori Building Co., Ltd.

2010年
2010

Redevelopment
area rezoned (2001)

2020

Site area

City Plan approved(Sep. 2017)
Urban Redevelopment Association
approved (Mar. 2018)
Rights conversion plan
approved (Feb. 2019)
Construction
started (Aug. 2019)

Image of Sakurada-dori Ave.
(viewed from Kamiyacho Stationarea) ©DBOX for Mori Building Co., Ltd.

Planned
to open(Autumn 2023)

Approx. 8.1ha

Ground area

Approx. 37,100m2

Total floorarea

Approx. 861,700m2

Construction
start

August 2019

Planned to
open

Autumn 2023

47

Azabudai Hills

Green & Wellness -Modern Urban VillageSite Plan

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

C district
Offices, residences, retailfacilities, etc.
CentralSquareRetail facilities (image)©DBOX for Mori Building Co., Ltd

Food market (image)©DBOX for Mori Building Co., Ltd

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

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

Cross-section Plan

Logo design expresses city concept

48

Azabudai Hills

Joint Lab with Keio University for Preventive Medicine and Wellness
 Keio University and Mori Building concluded a basic agreement to relocate and expand the Keio University

Center for Preventive Medicine, and thereby launch the Hills Joint Research Laboratory for Future
Preventive Medicine and Wellness.
 The center will provide preventive care for personalized needs, membership programs connecting various
facilities, and new preventive medicine & wellness services based on the joint research. The project aims
to help people living and working in the community achieve true wellness and thereby contribute to amore active society in which people of all generations lead healthier lives.

Image of membership program

Message from Shingo Tsuji, President and CEO of Mori Building"Wellness, a core concept of the Azabudai Hills, is a global theme that has gained increased importance due in part to
the COVID-19 pandemic. Collaborating with Keio University, which has been a leader in the advancement of preventive
medicine through clinical and research activities, Mori Building is committed to enhancing urban wellness andcontributing to the magnetic power of Tokyo, one of the world's greatest cities."

49

Azabudai Hills“Aman Residences, Tokyo” and New “Janu Tokyo” Hotel Brand Launched Aman, the operator of diverse, world-class luxury hotels and resorts, and Mori Building are collaborating

to launch Aman Residences, Tokyo and Janu Tokyo, the latter a sister hotel brand from Aman. Janu Tokyo
will mark as the debut of the luxurious Janu brand in Japan.
 Aman Residences, Tokyo will offer Aman's signature hospitality for extraordinarily peaceful lifestyles invibrant central Tokyo.
 Janu Tokyo will offer spa facilities, six restaurants, cafes and bars that greet local and overseas guests
alike with warm hospitality.

Lounge in Aman Residences, Tokyo (image)

Aman Spa in Aman Residences, Tokyo for residents only (image)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."

50

Azabudai Hills

Introducing Central Tokyo's Largest International School Azabudai Hills will be home to The British School in Tokyo where students will study in a rich learning environment in theheart of the city.
 The school, which will draw on a 30-year history and British-style educational curriculum, will create a learning

environment steeped in international culture for students from more than 50 countries. Surrounded by nature, the school
will nurture internationally minded students prepared to face the challenges of future society.

Location： Next to the A District Tower
Floors: 1 basement and 7 floors above ground
School area: Approx. 14,000m²
Facilities:• School Building: Approx. 14,000m²• Grounds: Two areas of approx. 900m²
Students: Approx. 700 (planned)
Student nationalities： More than 50

51

MORI Building DIGITAL ART MUSEUM: teamLab Borderless

Relocation from Odaiba Area to Azabudai Hills
 MORI Building DIGITAL ART MUSEUM: teamLab Borderless, which Mori Building established and operated

in collaboration with teamLab, will be relocated to central Tokyo’s Azabudai Hills.

 The digital art museum, which originally 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, according to a questionnaire conducted by the museum. In theyears that followed, the museum earned numerous prestigious national and international awards,
including being named as one of the World's Greatest Places 2019 by TIME magazine in the United States.
In just a few quick years, the museum 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," plans to steadily renew
exhibits that blur the boundaries between guests and the artworks. Once reopened, the museum is
expected to strengthen its reputation as one of Tokyo’s leading destinations attracting visitors fromaround the world.

Rendition of MORI Building DIGITAL ART MUSEUM: teamLab Borderless
opening at Azabudai Hills, Tokyo in 2023 © teamLab, courtesy PaceGallery

52

JAKARTA MORI TOWER

Mori Building’s First Development in Southeast Asia
 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 in an ideal location 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.

Location

Jakarta, Indonesia

Ground area

Approx. 8,088m2

Total floor space

Approx. 190,000m2

Construction start

July 2017

Completion

October 2022

Office main entrance

Office entrance lobby

Location in Jakarta

Outdoor terrace (image)

53

01

Overview of Financial Results for FY2022

02

Financial Forecast for FY2023

03

Sustainability and ESG Initiatives

04

Ongoing Projects

05

Referential Materials
54

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 salesOperation of facilities Real estate sales

 Hotel & Membershipbusiness for investors
 Residential sales

business for individual
customers

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 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

55

Bond Issuance Policy, Bond Specification and Redemption Schedule
Corporate bonds will be issued in a flexible manner, taking into account the level of
Bond Issuance other 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 May 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

8/8/2014
2/6/2015

8/14/2024
2/13/2025

10
10

13.0
10.0

0.861%
0.784%

34.0bp43.0bp15.1bp16.4bp16th Bond
18th Bond
19th Bond
21st Bond
23rd Bond
24th Bond

4/24/2015
4/20/2016
7/5/2016
2/10/2017
5/11/20188/10/2018

4/30/2027
4/25/2031
7/11/2036
2/16/2027
5/17/2038
8/16/2028

12
15
20
10
20
10

10.0
10.0
10.0
10.0
10.0
10.0

1.002%
0.800%
0.830%
0.440%
0.970%
0.460%

56.0bp75.0bp78.0bp34.5bp44.7bp35.0bp30.2bp48.4bp66.4bp10.0bp28.0bp7.5bp

25th Bond
26th Bond
1st Subordinated bond2nd Subordinated bond3nd Subordinated bond

7/25/201911/8/2019
1/17/201910/13/2020
10/4/2022

7/31/2029
11/14/2029
1/31/2056
10/19/2056
10/11/2057

10
10
37
36
35

10.0
15.0
50.0
45.0
50.0

0.340%
0.320%
1.430%
1.170%
1.360%

48.6bp37.0bp158.0bp127.1bp130.0bp

26.7bp15.9bp137.0bp120.0bp-

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

FY203856

Consolidated Balance Sheet for FY2022（millions of yen）

Assets
Account name

Liabilities

FY2021
As of Mar-31,2022

FY2022As of Mar-31,2023

266,207
9,672
692
2,000
72,289278,524
16,018980
2,000
59,755

12,316
6,346
288△ 12,533

30,847△ 16

36,835
△ 18

5,987
△2

381,693394,095

12,402changeCurrent assets
Cash and deposits
Accounts receivable - trade
Contract assets
Short-term investment securities
Inventories
Other
Allowance for doubtful accounts

Total current assets

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

Total Property, plant and equipment

FY2022As of Mar-31,2023

11,74945,596
10,00011,96916,24815,40090,973950
7,766
19,3083,651
45,377△ 9,050△ 4,202
3,060

1,302
39,896

1,666
38,351364△ 1,545

136,763

174,418

37,654203,950
1,171,385

253,000
1,257,097

49,05085,71287,362
1,279

95,181
1,268

7,819
△ 11

1,827
1,055
3,490

2,016
1,181
2,689

189
126
△ 800

126,637
5,687

130,564
4,928

3,926
△ 759

changeNotes 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

Property, plant and equipment
Machinery, equipment and vehicles

FY2021
As of Mar-31,2022

Current liabilities

Fixed assets
Buildings and structures

Account name

Bonds payable

282,517272,812△ 9,705

11,098
8,591

10,511
8,387

△ 587
△ 203

489,943
85,238242,130

490,744
161,387
381,712

801
76,149139,582Retirement benefit liability

577,624
1,726

575,476
1,746△ 2,147
19

Deferred tax liabilities

1,698,871

1,902,778

203,907

Total long-term liabilities

Long-term borrowings
Leasehold and guarantee deposits received
Long-term deposits received
Provision for retirement benefits for directors
Provision for dismantling cost of fixed assets
Other

Total liabilities

1,602,675

1,747,927

145,252

1,739,439

1,922,345

182,906

Intangible assets
Leasehold right

57,17655,388△ 1,787

Goodwill

11,9706,166
75,312

11,065
5,532
71,987△ 904△ 633△ 3,325

Other

Total intangible assets
Investments and other assets

50,35025,06259,801
22,9879,451△ 2,074

Long-term loans receivable

86,856

103,785

16,928

987

557

△ 429

Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts

Total investments and other assets
Total fixed assets
Total assets

Shareholders' equity
Capital stock

79,50089,50010,000Capital surplus

22,563474,267

32,585499,456

10,021
25,188△ 11,507
564,824△ 11,507
610,034

45,21015,05020,622

5,571

Retained earnings

Equity investments

Investment securities

Net assets

Treasury stock

Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on available-for-salesecurities

89

770

681

69

952

883

49,13851,7072,568

Foreign currency translation adjustment

36,65042,6495,998△ 1,298
211,184△ 1,017
238,592281
27,407

Remeasurements of defined benefit plans

96
51,866△ 317
63,906△ 413
12,0391,985,368

2,213,358

227,989

2,367,062

2,607,453

240,391

Deferred gains or losses hedges

Total accumulated other comprehensive income

Non-controlling interests

10,931

11,166235

Total net assets

627,623

685,10757,484

Total liabilities and net assets

2,367,062

2,607,453

240,39157

Consolidated Income Statement for FY2022（millions of yen）

Account name

FY2021changeFY2022

Operating revenue

245,306

285,582

40,276

Cost of revenue from operations

167,873

195,60227,728Operating gross profit

77,43389,98012,547

24,674

27,152

2,478

52,75962,827

10,068Interest income

955

1,054

98

Dividend income

203

177

△ 26

Compensation income

1,927

1,923

△3

Equity in earnings of affiliates

1,945

1,628

△ 316

Other

5,240

2,302

△ 2,937

Selling, general and administrative
expenses

Operating income

Non-operating income

10,271

7,085△ 3,186

Interest expenses

7,800

7,993

193

Finance charges and fees

1,229

1,266

37

246

701

454

Other

Non-operating expenses

9,275

9,961

686

Ordinary income

53,75559,951

6,196

307

3,511

3,204

9,149

-

△ 9,149

Subsidy income

651

441

△ 209

Other

924

86

△ 838

11,033

4,039△ 6,993

Gain on sales of fixed assets
Compensation received

Extraordinary income

64

5

△ 59

310

1,093

783

-

7

7

Loss on business restructuring

844

181

△ 663

Loss on COVID-19

861

-

△ 861

Other

248

196

△ 51

2,329

1,484

△ 844

Income before income taxes

62,45862,50547

Income taxes - current

17,60017,393

△ 206

1,869

766

△ 1,103

42,98844,345

1,356

Loss on sales of fixed assets
Loss on reduction of fixed assets
Impairment loss

Extraordinary losses

Income taxes - deferred

ProfitProfit attributable to non-controllinginterests
Profit attributable to owners ofparent

747

568

△ 179

42,241

43,7771,535

58

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.