MORI BUILDING CO.,LTD.
Financial Report for the Fiscal Year Ending March 2022 （FY2021）
2022.5.25

Construction site of Toranomon-Azabudai Project (May 2022)

0

01

Overview of Financial Results for FY2021

02

Financial Forecasts for FY2022

03

Initiatives to Realize a Decarbonized Society

04

Reference Materials

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

FY2020

FY2021change YoY
JPY%

Operating revenue

230.0

245.3

+15.2

+7%

Operating income

50.9

52.7

+1.8

+4%

Ordinary income

48.5

53.7

+5.1

+11%

Profit attributable to owners of parent

31.4

42.2

+10.8

+34%

FY2020

FY2021change YoY

Total assets

2,280.9

2,367.0

+86.0

+4%

Interest-bearing debt

1,427.5

1,430.9+3.3+0%Equity

559.7

616.6

+56.9

+10%

Equity ratio

24.5%

26.1%

+1.5%

-

(26.7%)(28.2%)

1.89

1.89

△0.01

-

(1.65)(1.67)(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■Operating revenue（Billions of yen）

FY2020

FY2021+8.2

change YoY（Billions of yen）

+4.1

+4.2

245.3

230.0

Leasing

157.1

155.4

△1.7

Property sales

41.9

50.2

+8.2

Operation of facilities

12.9

17.1

+4.1

Overseas

24.1

28.3

+4.2

Operating revenue

230.0

245.3

+15.2

Leasing

32.1

32.2

+0.0

Property sales

28.1

27.8

△0.2

Operation of facilities

△ 5.7

△ 4.0

+1.7

Overseas

8.4

9.8

+1.3

Operating income

50.9

52.7

+1.8

Non-operating income

7.8

10.2

+2.3

Non-operating expenses

10.2

9.2

△0.9

Ordinary income

48.5

53.7

+5.1

Extraordinary income

3.6

11.0

+7.3

Extraordinary losses

5.6

2.3

△3.3

Income before income taxes

46.5

62.4

+15.9

Profit attributable to ownersof parent

31.4

42.2

+10.8

△1.7

+7%

FY2020

Leasing

Property Operation Overseas
sales
of facilities

FY2021■Operating income（Billions of yen）

+4%

50.9

+1.7

+0.0

+1.3

52.7

△0.2
+11%

FY2020+34%

Leasing

Leasing

Property Operation Overseas
sales
of facilities

FY2021

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

FY2020

FY2021change YoY

FY2022
Forecast■Changes in operating revenue
for each segment+6.3

Operating revenue

157.1

155.4

△1.7

162.0

Leasing and management
and operation of real estate

108.0

114.3

+6.3

-

Consigned operation of realestate

27.6

22.1

△5.4

-

Contracted construction

11.3

7.5

△3.7

-

Regional heating andcooling/electricity supply

5.3

5.8

+0.5

-

Other

4.9

5.4

+0.5

-

Operating income

32.1

32.2

+0.0

32.5

157.1

FY2020■Changes in operating revenue

155.2
147.5 152.9

151.0 145.2
6.4
5.5
133.8 5.5
5.1
4.8
10.4

110.5 111.2 111.8 5.0
12.9
4.6
5.2
17.0

70.5

12.0
4.9
6.7
18.0

69.4

9.4
4.7
6.0
20.5

71.1

8.8

8.6

31.0

5.1
10.0 9.5
18.9 15.9

7.8
4.7
13.6
17.9

10.5
5.0
8.7
20.2

△3.7

Consigned
operation ofreal estate

Contracted
construction+0.5

Regional
heating andcooling/
electricity supply

Other

155.4

FY2021（Billions of yen）

（Billions of yen）

12.4
5.3
9.8

4.9
5.3
11.3

5.4
5.8
7.5

Forecast

Forecast

22.8

27.6

22.1

Other

Results

Regional heating andcooling/electricity supply

34.5

Contracted construction

74.9

+0.5

■Changes in operating income

156.4 161.7 157.1 155.4 162.0
12.4
5.6
7.3
19.4

Leasing andmanagement
and operationof real estate△5.4（Billions of yen）

100.6 105.5

110.6 108.6 110.6 111.4 111.2 108.0 114.3

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

32.2 32.5

Leasing and management andoperation of real estate
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Forecast

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

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

10.0%
10%

8.8%

9.2%

9.0%

8.6%
6.7%

8.0%

5%

5.3%
6.0%
4.0%

4.0%

4.3%

3.0%

3.0%

FY2014FY20150%
FY2009FY2010FY2011FY2012Mori Bld.

FY2013

5.4%
3.6%

2.8%

2.0%

2.0%

FY2016FY20171.8%

1.5%

FY2018FY2019

1.0%

6.4%

2.0%

2.0%

FY2020

FY2021

1.0%

Source: Miki Shoji Co., Ltd.

Office Building Market (5 central wards of Tokyo)■ Vacancy rate of residential units for lease
20%

15.9%
15%

12.0%
14.0%

11.9%
9.9%

10%

9.0%

9.4%

9.3%

8.4%

7.9%

7.6%

7.5%

8.6%

8.3%

8.4%

8.0%
7.0%

5%

9.0%

5.0%

5.0%

FY2013

FY20145.0%

5.0%

FY2015FY2016

7.0%

6.0%
4.0%

4.0%

FY2017FY20180%
FY2009FY2010FY2011FY2012Mori Bld.

Residential Market （3A area）

FY2019FY2020Source: KEN Residential Market Report

FY2021

5

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 2023.
• The skyscraper, springing up from a lush green environment at its base, will realize the concept of“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, 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 exceptionally verdantenvironment where diverse people will gather in harmony with nature to form a new community where
people can genuinely enjoy life.
• th nature.

ⒸDbox for Mori Building Co.

Image of central square
1990
Council of
Redeveloping
Citiesestablished (1989)ⒸDbox for Mori Building Co.

Image of Sakurada-dori Ave.

2000

2010

A District construction site (March 2022)

2020
Site area

UrbanRedevelopment
Preparations
Committee
established(1993)

Redevelopment
area rezoned(2001)

City Plan approved(Sep. 2017)
Urban Redevelopment Association
approved (Mar. 2018)
Rights conversion plan
approved (Feb. 2019)
Construction
started (Aug. 2019)
Planned
completion(2023)

Approx. 8.1ha

Ground area Approx. 63,900m2
Total floorarea

Approx. 861,500m2

Construction
August 2019
start
Plannedcompletion

2023

7

Toranomon-Azabudai Project
Site Plan

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

C district
Offices, residences, retailfacilities, etc.
CentralSquareImage of retail facilitiesⒸDbox for Mori Building Co.

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 schoolⒸDbox for Mori Building Co.

8

Toranomon-Azabudai Project's "A District" Tower Frame
Completed
The frame of the Toranomon-Azabudai Project A District Tower, a 330-meter, mixed-use high-rise incentral Tokyo, was completed and a ceremony marking the occasion was held on April 21.
• Large-scale offices occupying floors 7-52, in total some 204,000m² of rental space, will be arranged inroomy floor layouts measuring from 4,300m² (standard) to 4,840m² (maximum). The shaped, columnfree layouts with widths of approximately 18 meters in all directions will allow for freely open offices.
•

Approx. 80m

Approx.
80m

Standard floor layout

Frame completion ceremony (April 21, 2022)

Image of office entrance

9Toranomon-Azabudai Project:Mori Building Launches First Phase of Joint Research with Keio University Schoolof Medicine• 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 achieve true wellness andcontribute to a more active society in which people of all generations lead healthier lives.
• In April 2021, the Hills Joint Research Laboratory for Future Preventive Medicine and Wellness opened
and the first phase of joint research, targeting 40 Mori Building employees, launched in February 2022.

WELLNESSⒸDbox for Mori Building Co.

Image of membership program

Continuous blood glucose monitor
used in joint research

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."

10Toranomon-Azabudai Project:“Aman Residences, Tokyo” and New “Janu Tokyo” Hotel Brand Launched• Mori Building and Aman, the operator of diverse, world-class luxury hotels and resorts, are collaboratingin the Toranomon-Azabudai Project to launch Aman Residences, Tokyo and Janu Tokyo, the latter a sisterhotel brand from Aman. The opening of Janu Tokyo will mark as the debut of the luxurious Janu brand inJapan.
• Aman Residences, Tokyo will offer Aman's signature hospitality for extraordinarily peaceful lifestyles invibrant central Tokyo.
• JANU Tokyo will be designed to help guests restore their inner “soul” (janu) through connection andwellness in one setting. The hotel will offer some 120 guestrooms, over 3,000m2 of spa facilities and six
restaurants, cafes and bars that greet local and overseas guests alike with warm hospitality.

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."

11

Toranomon Hills Area:

New International Hub and Global Business Center

Toranomon Hills
Residential Tower
Opened in January 2022
Toranomon Hills
Mori Tower
Opened in 2014

Toranomon Hills
Business Tower
Opened in 2020

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

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 Tokyo
Metro Hibiya
Subway Line
Opened in June 2020
Toranomon Hills area (March 2022)

12

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 floors
Configuration: 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. 6,535m2
Total floor space : Approx. 121,000m2
Height: Approx. 220m/54 floors
Configuration: Residences, retail facilities,
parenting support facilities,
spa, etc.
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

Jan.
Completion

Mar.
Construction started

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

2018

Jan.
Completion

Jul.
Plannedcompletion

Toranomon Hills Station Tower(tentative name)Planned completion in July 2023
Ground area
: Approx. 13,960m2
Total floor space : Approx. 253,210m2
Height: Approx. 266m/49 floors
Configuration: Offices, commercial
facilities, hotel, businessmultifunctional complex,
etc.

13

Toranomon Hills Area:
Construction of Toranomon Hills Residential Tower for Global-level Residences
Completes Toranomon Hills Residential Tower, which will boast 547 residential units, the most of any building in the

Toranomon area, as well as a spa, Michelin-starred Japanese restaurant and international school, wascompleted in January 2022. Mori Building will apply its expertise in the housing business to provide a
premium-quality residence unique to Tokyo.
 Accessibility within the area will be enhanced with direct connections to nearby Mori Tower and theBusiness Tower via pedestrian walkways.
 Christoph Ingenhoven (Ingenhoven Architects) handled architectural designing and Tony Chi (tonychi)
designed the interior.

Image of residential unit

Front desk offering 24/7 service

Residences(12F-54F)

Serviced apartments(4F-11F)

International
Preschool (2F)

Shops and spa (1F-3F)
Residence entrance

Ground area

Approx. 6,535m2

Total floor space

Approx. 121,000m2

Construction start

March 2017
January 2022

Completion

Image of Toranomon Hills Spa

14

Toranomon Hills Area:

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 a Tokyo focal point for business and innovation.

A-1
district
Business
multifunctional
complexConstruction site (March 2022)

Offices

A-4
district

A-3
district

A-3
district

Offices
OfficeA-1 district

Ground area
Total floor space
Construction start
Planned completion

Approx. 13,960m2
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

15

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

FY2020

FY2021change YoY

FY2022
Forecast

Operating revenue

41.9

50.2

+8.2

65.0

Real estate sales business forinvestors

37.2

9.2

△28.0

-

Residential sales business forindividual customers

4.6

40.9

+36.2

-

28.1

27.8

△0.2

30.0

Operating income

Toranomon Hills Mori Tower■Changes in operating revenue■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

65.0

58.7 58.2 57.1
44.9
8.8

63.0

56.9

7.5

8.1

4.6

40.9

53.9
42.2

50.2

39.6 40.6 41.9

38.3

44.4

45.0

36.1

32.1 32.4

Forecast
Residential sales forindividual customers
Real estate sales forinvestors

37.2
9.2

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

Toranomon Hills Residential Tower

16

FY2021 ~Segment Overview（Operation of facilities）~
Golf courses（Billions of yen）

FY2020

FY2021change YoY

FY2022
Forecast

 SHISHIDO HILLS Country Club

Operating revenue

12.9

17.1

+4.1

23.0

Hotels

7.4

11.1

+3.6

-

Membership clubs

3.7

3.9

+0.1

-

Golf courses

1.7

2.0

+0.3

-

Operating income

△ 5.7

△ 4.0

+1.7

△ 2.0

「Japan Golf Tour Championship Mori
Building Cup Shishido Hills」
Jun3-Jun6 2021

■Major facilities operated by Mori Building SHIZU HILLS Country Club

Hotels「JLPGA Championship Konica Minolta cup」

 Grand Hyatt Tokyo

Presidential Suite Andaz Tokyo

Sep9-Sep12 2021

Andaz Sky Suite

17

FY2021 ~Segment Overview （Overseas）~■Changes in operating revenue（Billions of yen）

（Billions of yen）

FY2020Operating revenue

FY202124.1

28.3

change YoY

FY2022
Forecast

+4.2

28.0
35.2

Offices

19.7

Hotels, etc.

4.3

Operating income

8.4

22.4
5.8
9.8

+2.7

-

+1.4
+1.3

5.2

8.5

14.4
7.2

Offices
Hotels, etc.

6.3

6.9

30.0
6.9

28.5
6.9

28.3

26.6 27.2
5.2

6.1

23.7

24.1

5.1

4.3

18.5

19.7

28.0

5.8
Forecast

5.8
29.9
24.0

5.7

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.

31.2

20.1

17.9

8.7

30.3

24.2

Hotels, etc.

23.0

21.6

21.3

21.0

14.2

10.7

22.4
Offices

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

9.5

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 ground

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

18

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

Construction start
Plannedcompletion

July 2017

Image of office entrance

Image ofcommercial facilities

Goldentriangle
(CBD)

2022
Location in Jakarta

Construction site (March 2022)

19

Summary of Consolidated Balance Sheet for FY2021
2,280.9 2,280.9
Cash and cash equivalents
369.3

369.3

Inventories
21.0
38.3
Other current assets

21.0
38.3

2,367.0 2,367.0

2,367.0 2,367.0

268.2

213.9

268.2

2,280.9 2,280.9 （Billions of yen）

213.9
235.9

235.9
Bonds payable

72.2
72.2
41.1
41.1

1,216.9 1,216.9
Borrowings
1,191.5 1,191.5

1,698.8 1,698.8
Property, plant and1,608.4
equipment

1,608.4

Intangible assets
72.9

72.9

Investments andother assets 170.8

170.8

FY2020
As of Mar-31,2021

75.3

75.3

211.1

211.1

308.5

308.4

616.6

10.9

FY2021
As of Mar-31,2022

284.0

Other liabilities
284.0

616.7

559.7

Equity
559.7

10.1

9.6

9.6Non-controlling interests

FY2020
As of Mar-31,2021

20

FY2021 Total assets（Billions of yen）

2,367.0

2,280.9
2,200.3
2,089.8
1,986.9
1,888.5
1,819.5
1,713.51,746.7

1,302.7
1,235.4
1,185.6
1,122.0

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

21

FY2021 Income Generating Assets Unrealized Gains（Billions of yen）

913.0
737.4 727.6 755.6
554.5
474.3

436.7 450.3

806.8

949.5

999.3

838.2

503.0

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021※From the annual securities report22Status of Interest-bearing debt for FY2021
1,401.8

1,427.5

1,430.9

210.0

235.9

213.9

（Billions of yen）

1,162.7
1,058.2

1,025.8

Bonds payable
1,146.3

1,144.5

1,171.3
Long-term borrowings

Short-term borrowings
Net interest-bearing debt
Cash and cash equivalents
45.5

47.0

45.5

268.2
376.0

369.3

FY2019FY2020

FY202123

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

1,112.7
2.93

2.96
2.86

1,000.8 1,008.2

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

1.67

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

Net DER24

Status of Equity （Ratio） for FY2021

23.5%

23.9%
2,200.3

24.5%

26.1%
2,367.0（Billions of yen）

2,280.9

2,089.8

1,598.5

1,674.6

1,721.2

1,750.3

Liabilities, etc.

EquityEquity ratio

491.2

525.7

559.7

FY2018FY2019FY2020616.6

FY202125

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

28.17%
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%

666.6

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
EquityEquity ratio

26

01

Overview of Financial Results for FY2021

02

Financial Forecasts for FY2022

03

Initiatives to Realize a Decarbonized Society

04

Reference Materials

27

Financial Forecasts for FY2022■Revenue from operations（Billions of yen）

FY2021

FY2022
Forecast

245.3

273.0

+27.6

Leasing

155.4

162.0

+6.5

Property sales

50.2

65.0

+14.7

Operation of facilities

17.1

23.0

+5.8

Overseas

28.3

28.0

△0.3

52.7

53.5

+0.7

Leasing

32.2

32.5

+0.2

Property sales

27.8

30.0

+2.1

Operation of facilities

△ 4.0

△ 2.0

+2.0

9.8

8.5

△1.3

53.7

51.0

△2.7

Overseas
Ordinary income
Profit attributable toowners of parent（Billions of yen）

162.0

FY2021Resultschange YoY

Operating revenue

Operating income

155.4

FY2022
Forecast

65.0

50.2
17.1

Leasing

Property sales

23.0

Operation offacilities

28.3 28.0

Overseas■Operating income

32.2 32.5

27.8

30.0

9.8 8.5

42.2

37.0

△5.2

Leasing

Property sales△ 4.0 △ 2.0
Operation offacilities

Overseas28

01

Overview of Financial Results for FY2021

02

Financial Forecasts for FY2022

03

Initiatives to Realize a Decarbonized Society

04

Reference Materials

29

From Low-carbon to Decarbonized Cities
Mori Building fixes greenhouse gas emission medium & long term targets
Mori Building has set the following group targets to reduce greenhouse gas emissions from business activities in its
consolidated group 50% reduction by fiscal 2030 (compared to fiscal 2019) under the Greenhouse Gas (GHG) Protocol Scope 1 andScope 2
 30% reduction under Scope 3, aiming to reach net-zero emissions by fiscal 2050

30

From Low-carbon to Decarbonized Cities
Mori Building’s endorsement and participation in initiatives
 Confirmed its commitment to the Science Based Target (SBT) initiative.1 Within the fiscal year ending March 2023,

Mori Building hopes to be certified as supporting the goal to limit temperature rise to within 1.5 ℃ of pre-industrial levels.
 Joined RE1002 and Japan Climate Leaders' Partnership (JCLP)3
 Consolidated annual-performance reporting is based on the CDP4 climate-related information-disclosure platform.
 Supports the Task Force on Climate-related Financial Disclosures (TFCD).5 Plans to disclose the required

information by around this summer.

1

Encourages science-based greenhouse gas emission reduction targets in order to achieve the goals of the Paris Agreement. Jointly operated by CDP, World Wide Fund for Nature, World
Resources Institute, and United Nations Global Compact.
2Companies committed to using 100% renewable energy for electricity in their operations, run by The Climate Group and the CDP.

3

Established in 2009 by Japanese companies in recognition that industry must develop a healthy sense of urgency and initiate action to realize a more decarbonized world. Membership asof May 2022 numbered 211 companies from diverse industries, including some of Japan’s best-known corporate names, accounting for total sales of 121.0 trillion yen and consumption of
60.25 terawatt hours of electricity (including overseas bases). JCLP collaborates with local governments and overseas organizations, has signed a comprehensive partnership agreementwith Yokohama City and is now a comprehensive point of contact for the RE100, EV100 and EP100 initiatives as a local partner of The Climate Group, an international non-profit.
4

Global disclosure system, managed by a UK-based charity, for NGOs, investors, corporations, nations and cities to report their environmental impacts.

5

Established by the Financial Stability Board to examine climate-related disclosures and how financial institutions should respond.

31

Mori Building’s Environmental Initiatives
Vertical Garden City

Provision of renewable energy to tenants

The vertical garden city concept proposedby Mori Building refers to compact urban
complexes in which functions for work,
residence, recreation, commerce, education
and relaxation are highly integrated withinwalking distances.

Upon request, Roppongi Hills Mori Tower andToranomon Hills Business Tower can provide tenantswith renewable energy electricity using the renewableenergy value-trading market. In fact, Roppongi Hills
became Japan’s first office-leasing company to offer
renewable electricity to tenants.

Image of Vertical Garden City

Renewable energy value-trading market

Tenant demand response
Toranomon Hills Business Tower’s tenants, owner and energy center collaborate on demand-responsecontrol to effectively manage electricity and heat consumption during peak hours as well as supply energy
during normal hours.

32Initiatives for Achieving Targeted Goals
Both strengthen and newly introduce measures for decarbonization
 Strengthen (1): Environmental performance of new buildings under ZEB or ZEH and acquisition of environmental

certifications
 Strengthen (2): Establishment of next-generation energy network
 Newly introduce (1): Renewable-energy electricity in existing buildings Newly introduce (2): Facilities for stable supply of renewable energy

Note: Under Scope 3, Mori Building will identify and then reduce emissions at the time of construction in cooperation with supplychain companies.

33

Initiatives for Achieving Targeted Goals
Strengthen (1): Environmental performance of new buildings under ZEB or ZEH andacquisition of environmental certifications
 By 2030, all new buildings in Japan managed by Mori Building will achieve ZEB or ZEH levels of environmental

performance in the design stage.
 Environmental-performance certifications will be sought to ensure that suitable performance levels are maintained. For

Hills-branded projects, Mori Building will pursue CASBEE’s top “S” level for large properties and the top “Platinum” levelsof LEED and WELL, the world’s most widely used certifications.
 For existing buildings, Mori Building will pursue environmental certifications, enhance energy-savings measures andrenovate existing facilities.
ZEB Certification
The offices portion of the Toranomon Hills Business Tower,
which was completed in 2020, has acquired BELS certification,
which is equivalent to ZEB Oriented. In addition to the use of asun-shielding overhanging façade in harmony with thesurrounding area, the project was evaluated for its highefficiency energy center and the introduction of an energy
management system through three-way collaboration between
the tenant, the building owner, and the energy center.

LEED and WELL Precertification
The Toranomon-Azabudai Project and Toranomon Hills Area
Project both received top Platinum-level precertifications in
the Neighborhood Development (ND) category from LEED
(Leadership in Energy and Environmental Design). They also
received top Platinum-level precertifications for Building &Design/Core and Shell Development (BD+C) under LEED. In
addition, the Toranomon-Azabudai Project’s A District andToranomon Hills Station Tower’s A-1 District have received
Platinum-level precertifications under the WELL BuildingStandard (WELL), the world’s first performance-based system
for measuring, certifying and monitoring features of the built
environment that impact human health and wellbeing.

34

Initiatives for Achieving Targeted Goals
Strengthen (2): Establishment of next-generation energy network
 Mori Building has established highly efficient energy-supply centers and building energy networks in Roppongi Hills and

ARK Hills for energy conservation and business-continuity planning.
 The Toranomon-Azabudai project, currently under way, will introduce an AI-supported integrated energy management

system (EMS), a sewage heat utilization system, and other systems for high-efficiency energy usage.
 The

project’s on-site energy center will supply 100% RE100-compliant renewable-energy electricity to support
decarbonization throughout the entire complex, not just in individual buildings.

Integrated EMS

Toranomon-Azabudai project areanext-generation energy network

Sewage heat utilization system

35

Initiatives for Achieving Targeted Goals
Newly introduce (1): Renewable-energy electricity in existing buildings
 Mori Building will gradually introduce renewable electricity for all wholly and partially owned properties, including thoseoverseas, by fiscal 2030.
 For large buildings, such as those in Hills-brand complexes, adoption as soon as possible after fiscal 2022 is being

considered.
 The

Toranomon Azabudai Project and Toranomon Hills Station Tower (tentative name), both currently underconstruction, will be supplied with 100% renewable electricity immediately upon completion.

 Mori Building plans to use its proprietary Energy Web System to provide tenants with documents, based on tracking

information, to certify that their electricity comes from renewable energy.

Renewable-energy certification system in Toranomon-Azabudai project

Newly introduce (2): Facilities for stable supply of renewable energy
 In order to ensure stable supplies of renewable-energy electricity in the future, Mori Building will consider securing solar,

wind and other renewable energy facilities through various arrangements, including collaboration and partnership withwide-range businesses such as electric power companies and renewable energy developers.

36

01

Overview of Financial Results for FY2021

02

Financial Forecasts for FY2022

03

Initiatives to Realize a Decarbonized Society

04

Reference Materials

37

Future Initiatives for ESG

1. Establishment of internal system to promote environmental initiatives
Mori Building will establish an internal system to facilitate achievement of eco targets and disclosure of
related information.

2. Information disclosure regarding TCFD
Regarding the Task Force on Climate-related Financial Disclosure (TCFD) endorsed by Mori Building in April
2022, the company plans to start disclosing required information around this summer.

38

Certified as “White 500” Health & Productivity Management
Outstanding Organization for 2022
 Mori Building has been named to White 500 list of leading health & productivity management companies

in fiscal 2022 by Japan’s Ministry of Economy, Trade and Industry.

Health and Productivity Management Declaration by
Mori Building
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 and mentally 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

Head of Health and Productivity
Management Promotion

Mori Building’s president and CEO oversees groupwide
health and productivity management as a business matter.
In addition, the Human Resources Department, Health
Office & Company Doctor, which also serve as the Healthand Productivity Management Promotion Secretariat,
cooperate with the Working Style Reform Committee,
employee representatives and the Health Committee todevelop measures for maintaining and enhancing
employee health.

Health andProductivity Management
Promotion Secretariat

President and CEO

Human Resources
Department

Working Style
ReformCommittee

Health Office &Company Doctor

Employeerepresentatives

HealthCommittee

Collaboration

Since 2015, the Ministry of Economy, Trade and Industry has been surveying companies inJapan to determine their current status and changes over time in managing workforce
health and productivity. Based on responses to an annual survey, the program certifies
Health & Productivity Management brands, from among which White 500 large enterprises
are specially recognized as Health & Productivity Management Outstanding Organizations.

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

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○ 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

41

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 May 2022）
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

FY203842

Consolidated Balance Sheet for FY2021（millions of yen）

AssetsLiabilities

FY2020
As of Mar-31,2021

FY2021
As of Mar-31,2022

317,345
9,633
52,000266,207
9,672
692
2,000

△ 51,137△ 9,633
9,672
692△ 50,000

Inventories

21,05572,28951,233

Other

28,77130,8472,076△ 33
428,772△ 16
381,69317△ 47,079

Account namechangeAccount nameCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Accounts receivable - trade
Contract assets
Short-term investment securities

Allowance for doubtful accounts

Total current assets

FY2020
As of Mar-31,2021

FY2021
As of Mar-31,2022

10,19547,06922,9502,563-

11,74945,596
10,00011,96916,248changeCurrent liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Income taxes payable
Contract liabilities

1,315

1,302

△ 13

50,27839,896△ 10,382

134,373

136,763

2,390

Provision for bonuses
Other

Total current liabilities

1,554△ 1,472△ 12,950
9,406
16,248Long-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 andequipment

213,000

203,950△ 9,050

1,144,528
81,266

1,171,385
87,362

26,857
6,096

1,575
1,745

1,279
1,827

△ 296
81

938
3,500

1,055
3,490

116
△9

123,355
7,267

126,637
5,687

3,281
△ 1,579

Total long-term liabilities

1,577,178

1,602,675

25,497

Total liabilities

1,711,551

1,739,439

27,88779,50022,53979,50022,563

24

Treasury stock

443,610△ 11,507

474,267△ 11,507

30,657-

Total shareholders' equity

534,142564,824

30,681

10,68815,050

4,362

△ 489

69

558

36,65021,515

Bonds payable

Property, plant and equipment
237,872

282,51744,645

11,541
6,876

11,098
8,591

△ 443
1,714

485,593
124,058

489,943
85,2384,349△ 38,820

153,520587,222242,130
577,624

88,609△ 9,597

1,722

1,726

4

1,608,408

1,698,871

90,463Long-term borrowings
Leasehold and guarantee deposits
received
Long-term deposits received
Retirement benefit liability
Provision for retirement benefits for directors
Provision for dismantling cost of fixed assets
Deferred tax liabilities
Other

Intangible assets
Leasehold right

55,48657,176

1,689

Goodwill
Other

11,896
5,601

11,970
6,166

73
564

Total intangible assets

72,98575,312

2,327

Net assets
Shareholders' equity
Capital stock
Capital surplus

Investments and other assets

Retained earnings

Investment securities

39,79950,350Equity investments

24,751

25,062

311

Long-term loans receivable

58,71686,85628,139Retirement benefit asset

1,065

987

△ 78

140

89

△ 51

Valuation difference on available-for-salesecurities
Deferred gains or losses hedges

47,55849,1381,580

Foreign currency translation adjustment

15,134Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

275

96

△ 178

25,60951,866

26,257

9,691
569,443

10,931
627,6231,239
58,1792,280,994

2,367,062

86,067

Deferred tax assets
Other

10,550Allowance for doubtful accounts△ 1,201△ 1,298△ 96

Total investments and other assets

170,828

211,184

40,355

1,852,222

1,985,368

133,146

2,280,994

2,367,062

86,067

Total fixed assets
Total assets

Accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

43Consolidated Income Statement for FY2021（millions of yen）

Account name

FY2020changeFY2021

Revenue from operations

230,082

245,306

15,224

Cost of revenue from operations

156,957

167,873

10,916

Operating gross profit

73,12577,433

4,307

22,204

24,674

2,469
1,838

Selling, general and administrative
expenses

Operating income

50,92052,759Interest income

738

955

217

Dividend income

780

203

△ 576

Compensation income

1,927

1,927

△0

Equity in earnings of affiliates

1,659

1,945

285

Subsidy income

819

1,576

757

Other

1,962

3,663

1,700

Non-operating income

7,888

10,271

2,383

Interest expenses

7,769

7,800

30

Finance charges and fees

1,263

1,229

△ 34

Other

1,216

246

△ 970
△ 974

Non-operating expenses

10,2509,275

Ordinary income

48,55853,755

5,196

2,078

307

△ 1,770

-

9,149

9,149

1,375

-

△ 1,375

184

1,576

1,391

3,637

11,033

7,395

Gain on sales of fixed assets
Compensation received
Burden charge receivable
Other
Extraordinary income
Loss on sales of fixed assets
Loss on reduction of fixed assets

Impairment loss
Loss on business restructuring

Loss on COVID-19
Other

147

64

△ 83

1,800

310

△ 1,490

413

-

△ 413

-

844

844

3,045

861

△ 2,183

260

248

△ 12

5,667

2,329

△ 3,338

Income before income taxes

46,52862,45815,930

Income taxes - current

8,514

17,6009,086

Extraordinary losses

Income taxes - deferred
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners ofparent

5,947

1,869

△ 4,077

32,06742,988

10,921

649

747

97

31,41742,241

10,82444

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.