INVESTOR RELATIONS

LONG-TERM VISION AND MEDIUM-TERM MANAGEMENT PLAN

Mitsubishi Estate Group
New Long-Term Vision : BREAKTHROUGH 2020 (FY2012-FY2021)*
New Medium-Term Management Plan (FY2012-FY2014)*
Mitsubishi Estate Co., Ltd. (hereinafter “Mitsubishi Estate” or the “Company”) formulated its new long-term vision that extends over the next ten years. In addition, Mitsubishi Estate used the long-term vision as the basis for its new medium-term management plan, which will be in effect over the next three years. The details are as follows.
* FY2012 indicates the year ending March 31, 2012, other fiscal years being treated in a similar manner.

I. Long-Term Vision (FY2012-FY2021)

Mitsubishi Estate Group Vision: BREAKTHROUGH 2020
Orchestrating Comfortable Cities for the Future
- We Create Ideal Urban Environments Worldwide
Five “Values” and Five “Actions” for Achieving the Long-Term Vision
Five “Values” Five “Actions”
Innovative Continue to take on challenges as innovative urban developer
Eco-conscious Aim for sustainable growth through advanced environmental initiatives
Customer-oriented Always think about customer value from a customer perspective
Global Develop HR, structure and businesses suitable for global operations
As One Team Unite as one team and strive to realize BREAKTHROUGH 2020
・ The Mitsubishi Estate Group will continue to adhere to its mission, “Contribute to society through urban development,” and its corporate slogan, “A Love for People, A Love for the City,” as basic principles.
・ Mitsubishi Estate will further clarify its role to create and offer new lifestyle, work-style values based on safety, security and comfort.
・ Mitsubishi Estate will promote global operations and take on new challenges. The word “BREAKTHROUGH” is intended to convey the Company’s determination to overcome difficulties and make rapid progress through innovative ideas and new ways of business.

II. Basic Strategies (FY2012–FY2021)

Achieve Groupwide growth by “reinforcing value chains” and
 “becoming the leader in the investment and development business”
(1) Business Portfolio
Ten business sectors will be categorized into two larger business groups, among which Mitsubishi Estate will pursue greater synergies.
Investment & Development Business
・ Marunouchi Redevelopment
・ Urban Development
・ Residential Business
・ International Business
Synergie
Management & Services Business
・ PM & Leasing
・ Shopping Centers
・ Investment Management
・ Architectural Design & Engineering
・ Hotels
・ Brokerage and Other Services
Investment & Development Business
Business group where Mitsubishi Estate invests in development projects, manages balance sheets strategically and establishes its earnings base
Management & Services Business
Business group where Mitsubishi Estate offers added value through professional services
(2) Reinforcing Value Chains
・ Operations in the Investment & Development Business and the Management & Services Business will be closely linked.
・ With “development” as its mainstay, Mitsubishi Estate will accelerate operations in “leasing and sales” and “management,” creating added value for customers through this tripolar structure.
(3) Becoming the Leader in the Investment & Development Business
・ The Mitsubishi Estate Group has traditionally nurtured its development capabilities. The Group will further bolster these capabilities through the reinforcement of its value chains and the generation of synergies among business sectors.
Sector-Specific Strategies to Become the Leader in the Investment & Development Business
a. Marunouchi Redevelopment Continue to promote Marunouchi Redevelopment and maximize the value of the Marunouchi area
b. Urban Development Lead market expansion through selective investments
c. Residential Business Establish Japan’s top condominium brand for quality and quantity and pursue lifelong customer value through management, renovation and brokerage operations
d. International Business Leverage track record, experience and network nurtured through U.K. and U.S. operations to expand business portfolio while aggressively penetrating growing markets in Asia and developing businesses
(4) Vision for Growth toward FY2021
Aim to Double Operating Income by FY2021

III. Medium-Term Management Plan (FY2012–FY2014)

III.-1 Quantitative Targets

Mitsubishi Estate has set management indicator targets for growth potential, efficiency and soundness.
  Indicator Target
Growth potential EBITDA ¥ 265.0 billion
Efficiency EBITDA/Total assets 5.3% or more
Soundness Net interest-bearing debt/EBITDA 7.5 times max
* EBITDA = Operating income + Interest and dividend income + Equity in earnings (losses) of unconsolidated subsidiaries and affiliates + Depreciation and amortization
* Net interest-bearing debt = Interest-bearing debt – Cash and cash equivalents
* These targets are based on the figures after inclusion of special-purpose companies within the scope of consolidation.

III.-2 Basic Strategies under the Medium-Term Management Plan (FY2012–FY2014)

(1) Investment & Development Business
a. Marunouchi Redevelopment: Maximize the value of the Marunouchi area
･ Promote world-leading business concentration, boost area attraction by introducing a variety of urban functions, develop disaster-resistant urban district
･ Undertake area management through public-private partnerships (PPP),  take advantage of various city planning systems and policies
b. Urban Development: Promote projects and lead the market
･ Reinforce the Company’s asset portfolio management
･ Continue to supply various types of prime properties in the real estate investment market, by accelerating redevelopment and multiple development projects
c. Residential Business: Strengthen operations centered on the condominium sales business
･ Leverage the synergy of consolidating Mitsubishi Jisho Residence Co., Ltd. and pick up the pace of operations
･ Bolster servicing and other peripheral operations, including property management, renovation and brokerage
d. International Business: Expand portfolios in Europe and the United States and reinforce Asian operations
･ In Europe and the United States, which provide stable real estate investment markets and where the Company has business track record and expertise, continue to promote further development projects
･ In Asia and other emerging regions, expand business fields through partnerships with local partners
(2) Management & Services Business
･ Improve professional capabilities to offer added value to customers in PM & Leasing, Shopping Centers, Investment Management, Architectural Design & Engineering, Hotels, Brokerage and Other Services
･ Leverage the collective strengths of the Mitsubishi Estate Group, strategically reinforce and coordinate value chains
(3) Group Themes
In step with the initiatives to be implemented in individual business fields, Mitsubishi Estate will promote the following four Groupwide initiatives:
a. Groupwide promotion of globalization
･ In addition to accelerating overseas expansion (“in-out” approach), lead the promotion of urban district globalization (“out-in” approach) in each business field
b. Environmental initiatives
･ Implement advanced initiatives under the Long-Term Environmental Vision
･ Utilize renewal energy, promote R&D for Eco-Technology in each business field to reduce environmental impact
c. Management infrastructure enhancements
･ Strengthen the Company’s functions for Group management, risk management and asset management as well as for research and analysis
d. HR development and workplace invigoration
･ Train global employees to underpin the Mitsubishi Estate Group’s corporate value while creating workplaces and corporate culture characterized by diversity and vitality
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