MITSUBISHI ESTATE Annual Report 2014

Urban redevelopment must continually change in response to the requirements of the times. During the 1960s, an era of high economic growth in Japan, the first priority was to create an environment in which numerous people could work efficiently. Therefore, we pursued functionality in our development of the Marunouchi district. In today’s economically prosperous Japan, however, people’s sense of values, working habits, and other factors have changed—greater weight is placed on the impor-tance of leisure time. In response to the needs of the times, we have continued to transform the Marunouchi district into a town where people not only work but interact and exchange information under the concept of the world’s most interaction-inspiring neighborhood.* Ratio of total floor space of a building to land area under Japanese building lawsBuilding an Organization Capable of New Concepts in Urban DevelopmentFrom the vantage point of creating value from a long-term perspective through urban development, the key management resource is not capital or land, but people. For example, when we were redeveloping the Tokyo, Shin-Marunouchi, and Marunouchi Park buildings into high-rise buildings during the first stage of the Marunouchi Redevelopment Project, we presented the idea of transferring the unused portion of the allowable floor area ratio* for JR Tokyo Station to the high-rise buildings. In the end, what enabled us to achieve the transfer after persistent negotiations with authorities and other related parties was people power. Based on such an example, to con-tinue our style of urban development that generates completely new value based on new concepts, I believe it will be necessary for the overall Group to strengthen its human resources.To Our StakeholdersCompanywide Quantitative Targets for FY 2015–FY 2017IndicatorFiscal 2014 ResultsFiscal 2017 TargetsGrowth potentialEBITDA¥246.3 billion¥250.0 billion or aboveOperating income¥161.3 billion¥165.0 billion or abovePerformanceEBITDA / Total assets5.2%5.0% or aboveStabilityNet interest-bearing debt / EBITDA7.1 timesApprox. 8.0-8.9 timesOperating Income Targets by Business SegmentFiscal 2014 ResultsFiscal 2017 TargetsBuilding Business¥116.3 billion¥120.0 billionResidential Business¥27.8 billion¥28.0 billionInternational Business¥25.6 billion¥25.5 billionManagement Services Business¥6.6 billion¥7.0 billionEliminations or Corporate¥(15.0) billion¥(15.5) billion18MITSUBISHI ESTATE CO., LTD.