Mitsubishi Estate Group. New Medium-Term Management Plan (FY2015 FY2017) *

Transcription

1 To whom it may concern: May 9, 2014 Company name: Mitsubishi Estate Co., Ltd. Representative: Hirotaka Sugiyama, President and Chief Executive Officer Securities code: 8802 Contact: Masaki Yamagishi, General Manager, Corporate Communications Department Telephone: Mitsubishi Estate Group New Medium-Term Management Plan (FY2015 FY2017) * Mitsubishi Estate Co., Ltd. (hereinafter Mitsubishi Estate or the Company ) today announced that it has formulated its new medium-term management plan that extends over the next three years. The details are as follows. * FY2015 indicates the year ending March 31, 2015, other fiscal years being treated in the same manner. Medium-Term Management Plan (FY2015 FY2017) 1. Quantitative Targets Mitsubishi Estate has set management indicator targets for growth potential, performance and stability. Indicator Target(FY2017) Growth EBITDA billion or above potential Operating income billion or above Performance EBITDA/Total assets 5.0% or above Stability Net interest-bearing debt/ebitda Approx times * EBITDA = Operating income + Interest and dividend income + Equity in earnings (losses) of unconsolidated subsidiaries and affiliates + Depreciation + Amortization of goodwill * Net interest-bearing debt = Interest-bearing debt Cash and cash equivalents

2 2. Development of Organizational Structure (1)Office Business Strengthen the core business, through the clarification of four key areas (asset management, development, leasing and property management) (2) International Business Established the United States & Europe Business Department and the Asia Business Department of Mitsubishi Estate, thereby strengthening international business as a future strategic growth sector (3) New Business Mitsubishi Estate established the Business Creation Office which appropriately addresses changes in the business environment, assesses potential business opportunities and launches new projects 3. Business Objectives and Group-wide Focal Points (1) Investment & Development Business Strengthen Development a. Office Business (Marunouchi) Maximize value of the Otemachi/Marunouchi/Yurakucho area by taking advantage of city planning systems and policies as well as collaborations and phase redevelopment. Promote environmentally-friendly development and development that meets the needs of clients and the market as a whole Boost area popularity by introducing various urban amenities Enhance area attractiveness and value through public-private area management Promote eco-friendly smart communities through energy management and disaster-prevention management b. Office Business (Urban Development) Continue supply to the real estate investment market through the development of competitive properties in line with market demand Actively develop major business areas utilizing development know-how Continue to engage in urban redevelopment projects c. Retail & Logistics Properties Business Develop new retail properties utilizing the company s strengths and increase the value of existing retail properties

3 Continue promotion of new developments and expansion of existing properties aimed at becoming the No. 1 in the outlet business Continue development of logistics and establishment of the Logicross brand d. Residential Business Stable supply of condominiums and continual enhancement of product quality Strengthening of sales capabilities and securing of profit rate through cost control Expansion of the stock business (management, brokerage, reform, renovation, etc.) by enhancing the value chain e.g. Integration of condominium management businesses Aiming to provide life-long satisfaction to clients and residents Strengthening the business portfolio strategy by strengthening the rental residential business e. International Business Advance the Europe/U.S. business and Asia business by strengthening the overseas business research and asset management, including strategic investment management North America - Utilize existing resources and experience to develop a hybrid model* that incorporates value chain U.K. - Expand the business portfolio including redevelopment projects Asia - Actively develop projects incorporating the high growth of Asian countries Business development to be considered in Europe, Oceania, etc. *A scheme whereby third-party funds are added to cash on hand, a larger platform is used and investment is developed while services are provided to investors. (2) Management & Services Business Take advantage of the strength of the group to provide solutions and services and to strengthen values chains a. Office Business (Leasing and Property Management) Enhance brand loyalty through the development of key networks Increase value of property through strengthened property management Upward rent revisions of existing buildings in line with improvements in the market environment

4 b. Retail & Logistics Properties Increase of profitability through the provision of various services in accordance with the increase of international and seniors clients; Establishing the MARK IS retail brand Accumulation of asset management know-how and strengthening of leasing capabilities for logistics facilities c. Investment Management Business Provision of opportunities for long-term fund management through the establishment of global platforms in the U.S., Europe and Asia d. Architectural Design & Engineering Business Aim for recognition of achievements and client satisfaction by strengthening design and technological quality Active development of environmentally friendly technologies and reduction of environmental footprint e. Hotel Business Development of the THE series (Royal Park Hotel THE Haneda opening scheduled in FY2015) Establishment of the Royal Park Hotel brand f. Real Estate Service Business Top company for corporate real estate strategy support Contribution to the Mitsubishi Estate Group value chain (3) Group-wide Objectives a. Reinforce asset portfolio management and organizational structure Strengthen the financial structure through appropriate replacements of assets Reinforce and enhance research capabilities b. Business portfolio management Aim for growth in each business sector through appropriate distribution of management resources Adjust to changes in the business environment and research new projects in order to grasp new business opportunities

5 c. Group-wide management Aim for greater effectiveness of the entire group and evolve group management d. Human Resources development and deployment Aim to become a corporate group with a rich and diverse human resource pool e. Risk management and compliance Avoid risk through thorough and continuous Plan Do Check Act f. Environmental initiatives Build and nurture the Otemachi, Marunouchi and Yurakucho smart community Develop new energy-efficient systems g. Creation of vibrant workplaces and corporate culture Realize work-life balance through supporting working that matches individual lifestyles Develop a workplace that is both challenging and rewarding <Inquiries> Mitsubishi Estate Co., Ltd. Corporate Communications Department Telephone: