Mitsubishi Estate : 統合報告書（閲覧用）

Offering True Value as Ecosystem Engineers

Integrated Report

2024

"A Love for People A Love for the City"

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

1

"A Love for People A Love for the City"

Forever Taking On New Challenges-The Mitsubishi Estate Group

The Spirit of Mitsubishi: Three Principles

"Shoki Hoko"	"Shoji Komei"	"Ritsugyo Boeki"
所期奉公	処事光明	立業貿易
Corporate Responsibility to Society	Integrity and Fairness	Global Understanding through Business
Strive to enrich society, both materially and	Maintain principles of transparency and	Expand business, based on an
spiritually, while contributing toward the	openness, conducting business with	all-encompassing global perspective.
preservation of the global environment.	integrity and fairness.

The Mission of the Mitsubishi Estate Group

We contribute to society through urban development.

By building attractive, environmentally sound communities where people can live,

work, and relax with contentment, we contribute to the creation of a truly meaningful society.

The Mitsubishi Estate Group Code of Corporate Conduct

In order to carry out the Group's Mission, we pledge to observe the following Code of Conduct:

1	2	3
We will act with integrity.	We will strive to earn the trust	We will strive to create
of our clients.	a vibrant workplace.
We will base our conduct on laws and ethics	We will approach all objectives from our	While aiming at personal growth, we will
and always reflect with humility upon our	clients' point of view, providing safe and	respect the human rights and diversity of
behavior, valuing our communication with	reliable products and services, and make	opinions of others and increase our creativ-
society and placing priority in our corporate	information available as appropriate.	ity and professionalism, while displaying
activities on earning trust through fairness		our collective strengths as a team.
and transparency.

For details on the Mitsubishi Estate Group Guidelines for Conduct:

https://www.mec.co.jp/en/company/charter/

(Formulated December 1, 1997; revised on August 1, 2002, January 1, 2006, and April 1, 2018)

Index

3 CEO Message

1. Value Creation Story

1. Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

Mitsubishi Estate's Website

CONTENTS

CONTENTS

1. 3 CEO Message

1. 9 Value Creation Story

1. History of Value Creation

1. Value Creation Model
2. Long-TermManagement Plan 2030

1. Marunouchi's Past, Present, and Future

1. Strategies for Increasing Social Value

1. CFO Message

1. Progress of Long-Term Management Plan 2030

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

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1. 55 Sustainability (ESG) Section

1. Sustainability Frameworks / Framework for Monitoring Key Themes
2. External Evaluations of ESG Performance
3. Pursue Tangible and Intangible Urban Development for the Next Generation

1. Maintain Commitment to Reducing Environmental Impact

1. Consider People, Empathize with People, Protect People

1. Create and Circulate New Value

1. Information Disclosure Based on the TCFD's Recommendations
2. SASB
3. Human Capital

Index

3 CEO Message

1. Value Creation Story

1. Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

1. 35 Business Review

1. Business Review
2. Reorganization of Business Groups
3. Commercial Property Business 39 Office Building Business
   41 Retail Property Business / Outlet Mall Business
   42 Logistics Facility Business

1. Hotel Business
2. Airport Business
   45 Residential Business
   47 International Business
   51 Investment Management Business

1. Architectural Design & Engineering Business and Real Estate Services Business
2. Innovation and Business Transformation Group
3. Business Development, Client Relations & Solutions Group

1. 76 Corporate Governance

1. Message from the Chairperson of the Board
2. Corporate Governance System

1. Evaluation of the Effectiveness of the Board of Directors

1. Remuneration

1. Dialogues with Shareholders and Investors (ESG Meetings)

1. Shares Held for Strategic Purposes
2. Directors
3. Corporate Executive Officers, Executive Officers, and Group Executive Officers
4. Message from an Outside Director

1. Risk Management

1. 98 Financial Section

1. Status of Shareholdings
2. Eleven-YearSummary of Selected Financial Data (Consolidated)

P100 Corporate Data

1. Principal Mitsubishi Estate Group Companies
2. Corporate Information

Mitsubishi Estate's Website

A Word about Integrated Report 2024

We adopted this integrated report format starting from FY2018, having published annual reports through to FY2017. With this integrated report, we have expanded coverage of non-financial information, centering on environmental, social, and governance (ESG) topics, compared with prior annual reports. In doing so, we aim to increase readers' awareness of our efforts to raise the corporate value of the Mitsubishi Estate Group from a medium- to long-term perspective. We hope that this report promotes a deeper understanding of the Group among all of our stakeholders, including shareholders and investors.

Definition of Term Covered

"FY2023" refers to the Group's fiscal year ended March 31, 2024, and other fiscal years are referred to in a corresponding manner.

Caution Concerning Forward-Looking Statements

This integrated report contains forward-looking statements concerning Mitsubishi Estate Co., Ltd., and its future strategies and earnings outlook, including forecasts, plans, and decisions based on information available at the time of publication. As with any forecast, plan, or decision, forward-looking statements are inherently susceptible to potential risks, uncertainties, and assumptions. The Company's actual results may therefore vary materially from those expressed or implied in its forward-looking statements.

CONTENTS

CEO Message	MITSUBISHI ESTATE CO., LTD. Integrated Report 2024	3

"A Love for People A Love for the City"

Continuously Taking On Challenges as Ecosystem Engineers to	Atsushi Nakajima
Build Sustainable Business Models and Contribute to Society through
President & Chief Executive Officer
Urban Development
Mitsubishi Estate Co., Ltd.

Index

3 CEO Message

1. Value Creation Story

1. Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

Mitsubishi Estate's Website

CONTENTS

CEO Message

Leading the Management of the Mitsubishi Estate Group with Unwavering Commitment

I am President & Chief Executive Officer (CEO) Atsushi Nakajima of Mitsubishi Estate, and I assumed this role a year ago. At the beginning of my message in last year's integrated report, I referred to the saying, "the journey of a thousand miles begins with a single step," and stated that taking that first step is crucial to achieving an ambitious goal.

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As my first step in my role to lead the management of Mitsubishi Estate,

I engaged in communication with internal and external stakeholders, including shareholders, to examine the future direction of the Mitsubishi Estate Group in its efforts to improve its corporate value. In May 2024, the Group unveiled Long- Term Management Plan 2030 Review. While the targets for the efficiency indicators of return on assets (ROA), return on equity (ROE), and earnings per share (EPS) remained unchanged under Long-Term Management Plan 2030, the review took into account changes in the business environment and the progress of various businesses to revise the Group's approach toward achieving the plan's targets. This enhanced the visibility of the plan.

Following the recategorization and downgrading of the COVID-19 pandemic to a Category V infectious disease, life returned to near normalcy in the previous fiscal year. This was a welcome change from over three years of restrictions on going out. The business environment for retail properties and hotels has seen a positive shift, supported by a rebound in domestic consumption and a sharp rise in inbound tourism. On the other hand, there is a growing sense of uncertainty in global affairs, including the ongoing crisis in Ukraine and the increasingly desperate situation between Palestine and Israel. In Europe and the United States, factors including overheating inflation and persistently high interest rates are affecting our businesses to a certain degree. For example, the escalation of construction costs due to rising material prices has become a significant challenge for the real estate industry. Since FY2023, despite exorbitant construction costs coupled with labor shortages, making it increasingly challenging to promote business in Japan, the Group has commenced construction of Torch Tower, part of the TOKYO TORCH project, the Akasaka 2•6-chome Development Project, and the Tenjin 1-7 Project. Despite the impact of escalating construction costs, the steady start of each project through various measures represents a significant step toward the achievement of Long-Term Management Plan 2030.

While a number of changes are expected to continue, the Group will continue to offer true value by using its originality and ingenuity to drive growth and increase both social and shareholder value. I will continue to oversee the Group's management with the utmost dedication and commitment.

Index

3 CEO Message

1. Value Creation Story

1. Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

Mitsubishi Estate's Website

CONTENTS

CEO Message

Aiming to Earn Recognition Globally as the World's Foremost Real Estate Business Group

Mitsubishi Estate develops its businesses by offering real estate and services with true value. This is based on the idea that offering something of value will contribute to ongoing economic activities for both the people of today and future generations.

With this in mind, I believe that the Group and each of its employees must be Ecosystem Engineers. The Group adopted "Be the Ecosystem Engineers" as the title of its vision statement in Mitsubishi Estate Group Sustainability Vision 2050. The idea behind this title serves as a helpful approach for increasing both social and shareholder value. Ecosystem Engineers are companies and people (engineers) providing spaces and infrastructure (ecosystems) that continuously facilitate the establishment of cooperative economic, environmental, and social relationships. As Ecosystem Engineers, the Group and its employees lead greater society and the industry with the aim of earning recognition globally as the world's foremost real estate business group.

The Mitsubishi Estate Group has been at the forefront of transforming Marunouchi from fields into a highly attractive area by offering value focused on the future. The Group has led the development of Marunouchi, evolving it into an enduringly attractive area by fostering collaborative relationships with numerous partner companies, government bodies, and other key players.

Today the Group's businesses extend into a variety of domains, including the International Business. While maintaining ongoing efforts will become a major challenge for the Group, I am convinced that its businesses will expand and become more sustainable by earning the understanding of partners through cooperation and sharing its ambitions with them.

In my management duties, I am keen to focus strongly on driving the Mitsubishi Estate Group's earnings power, a core competence. In order to ensure the long-term sustainability of the ecosystem, it is essential to generate returns that are commensurate with the value provided. Currently, revenue from assets

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accounts for a significant portion of the Group's profits. At the same time, the Group also benefits from a range of strengths and expertise gained from its extensive experience in real estate development, property management, asset management, and brokerage.

Reaffirming these strengths, the Group will focus further on non-asset-based income streams, such as fee income, through the provision of specialist expertise. Specifically, we will return to the basics of business in terms of development, sales, property management, asset management, and other skills and capabilities, to fully increase individual and organizational strengths. I am confident that this will enable the Group to offer true value as Ecosystem Engineers, thereby improving its corporate value.

Long-Term Management Plan 2030 Review (Shareholder Return Policy)

Adopting a Stable Shareholder Return Policy Owing to a Favorable Profit Growth Outlook

Looking at Long-Term Management Plan 2030 Review, I would first like to discuss shareholder returns.

In terms of dividends, the outlook for future improvements in business performance and stable leasing cash flow has led to the introduction of a progressive dividend policy. This policy involves increasing the dividend by ¥3 per share every year, in principle, until FY2030.

Regarding business performance outlook, the Group anticipates achieving consistent growth driven by factors including its accumulation of capital-recycling assets in Japan and overseas. Furthermore, the Company anticipates additional growth in leasing cash flow, reflecting the completion of 8 Bishopsgate (London) last year and the impending completion of Torch Tower, along with the stable cash flows from leasing buildings in Marunouchi and Manhattan, New York. Going forward, the Group will commence the divestment phase for projects

Index

3 CEO Message

1. Value Creation Story

1. Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

Mitsubishi Estate's Website

CONTENTS

CEO Message

amassed in Japan and overseas. We expect capital gains on these projects to fluctuate to a certain degree from year to year, depending on market conditions and other factors. We will seek to maximize profits by carefully analyzing optimal times for buying and selling. To this end, while acknowledging that operating profit and net income will vary from year to year, our objective is to both maximize profit when market opportunities arise and provide stable shareholder returns by outlining that dividends will increase progressively with the upward trend in business performance and stable leasing cash flows.

Next, I will discuss share buybacks. Although we have conducted share buy- backs flexibly and dynamically and provided shareholder returns on the largest scale among our peers, feedback from shareholders has suggested that our buyback efforts are volatile and lack predictability, making them difficult to assess positively.

In light of this feedback, the review presented a policy of continuous and flexible share buybacks. Specifically, we anticipate conducting share buybacks of ¥50.0 billion in FY2024, with buybacks on a similar scale in FY2025 and FY2026. This policy is designed to enhance predictability for shareholders. We will also examine the possibility of conducting additional buybacks in response to market conditions, based on our share price and cash flow performances.

Long-Term Management Plan 2030 Review (Business Strategies)

Achieving Continuous Growth by Reaffirming and Refining the Group's Strengths

Turning to business strategies, Mitsubishi Estate has reorganized its businesses in Japan, separating the Marunouchi business into its own segment from the previous Commercial Property Business.

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The Mitsubishi Estate Group's Marunouchi business began in 1890 when Yanosuke Iwasaki, the president of Mitsubishi Company, purchased Marunouchi land at the request of the Meiji government of Japan. Based on our unwavering commitment to modernizing Japan, we spent over 130 years developing the Marunouchi area into a world-leading business center. This has involved navigating various events along the way, including Japan's period of rapid economic growth and the collapse of the country's bubble economy, while remaining at the forefront of the times.

I believe that Marunouchi must remain ahead of the times. Marunouchi is not only a leading business area in Japan but also a multi-faceted place where people can work comfortably and connections can be developed. At times, it is also a place for relaxing and celebrating special occasions. The source of Marunouchi's outstanding appeal lies in all these facets.

Index

3 CEO Message

1. Value Creation Story

1. Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

Mitsubishi Estate's Website

CONTENTS

CEO Message

Mitsubishi Estate will reaffirm the approach and appeal of its urban development efforts to date. It will examine what a next-generation area requires and seek to improve profitability in Marunouchi by developing it into an even more appealing area.

Despite discussion during the COVID-19 pandemic that offices had become obsolete, the pandemic ultimately reaffirmed their importance. In general, companies previously saw expenditure on offices as a cost. However, with a growing number of companies seeking better offices to improve employee satisfaction and promote recruitment, offices have been repositioned as an investment. In an external survey, the Marunouchi area was chosen as the place where people are most likely to work due to its convenient access to transportation, concentration of companies, and other advantages. We will ensure that Marunouchi continues to grow and become an office area that remains the preferred choice, continuing to further enhance its appeal in accordance with the changing times.

Meanwhile, seeds that were planted for projects in Japan and overseas are about to come to fruition. In FY2024, joint venture properties that leveraged the Group's know-how are scheduled for completion and opening, including the partial opening of GRAND GREEN OSAKA. In joint ventures, the Group secures fee income that is not dependent on assets by utilizing its diverse know-how and human capital-such as in project management, leasing management, architectural design and engineering, property management, and asset management- to generate highly efficient profits.

In the International Business, we aim to achieve the target for operating profit of ¥90.0 billion, which we established under the long-term management plan, ahead of schedule, through the selective investments we have amassed thus far, depending on market circumstances. Our focus on developed countries provides us with excellent business opportunities, including in the United States, where we have a long track record, and in Australia, where we have expanded our business through collaborations with local partners in recent years. We will continue to make growth investments proactively, with the goal of increasing profits by selling properties at the optimum times.

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Addressing Social Issues through Business Activities, Driven by Our Diverse Human Resources

In May 2024, Mitsubishi Estate revised its key themes related to sustainability. The Group is committed to responsible business promotion with an eye to future generations 50 or 100 years from now. Mindful that such business promotion is the best way for it to develop continuously into the future and return value to its stakeholders on an ongoing basis, the Group adopted four key themes in relation to urban development, the global environment, respect for people, and value creation.

While these four themes are closely interrelated, and each one is a key theme, ultimately, I believe business is about people. Human resources, our most valuable asset, play the leading role in offering value to society. I call upon the Group's employees-its human resources-to be Change Makers and Professionals. Possessing the spirit to take on challenges without fearing change or being bound by convention, Change Makers are capable of building businesses while drawing in others and gaining the cooperation of external parties. As the term implies, Professionals have specialist expertise. By promoting our business through Professionals with a variety of specialist expertise and the spirit to take on challenges, while drawing in others, we can offer new value that goes beyond conventional frameworks. It is my belief that by consistently pursuing these efforts, the entire Group can become Ecosystem Engineers, enabling it to offer true value continuously.

Index

3 CEO Message

1. Value Creation Story

1. Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

Mitsubishi Estate's Website

CONTENTS

CEO Message

To Our Stakeholders

I believe that maintaining dialogue with stakeholders is of the utmost impor- tance. In an environment where people hold disparate standpoints and approaches, doggedly maintaining careful communication is imperative for understanding the views of others and ensuring that others understand your own views.

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Particularly in a climate of ongoing uncertainty in the external environment due to various factors, I will strive to bridge any gaps between our approach and that of our shareholders and investors on how best to achieve our targets, through communication or, if necessary, examining the possibility of revising our policies. I will pursue corporate management that promotes a deep understanding of the Group's businesses and creates fans of the Group through ongoing engagement in open-minded dialogue with a variety of stakeholders.

The Mitsubishi Estate Group uses the catchphrase, "To the Future with Mitsubishi Estate," which incorporates a message emphasizing the importance of being challenge- and value creation-oriented and using these traits to create true value, hope, and inspiration. At the core of my management philosophy is a spirit of embracing challenges and creating true value. Carefully considering what is true value for stakeholders, I am driven to push boundaries and take on various challenges. With every employee continuing to take on challenges, the Group will work together to achieve the long-term management plan and increase its corporate value continuously across its global business portfolio. We appreciate your continued support for our endeavors. Together, let us forge a path to the future with Mitsubishi Estate.

Atsushi Nakajima

President & Chief Executive Officer

Mitsubishi Estate Co., Ltd.

Index

3 CEO Message

1. Value Creation Story

1. Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

Mitsubishi Estate's Website

CONTENTS

Value Creation Story

1. History of Value Creation

1. Value Creation Model
2. Long-TermManagement Plan 2030

1. Marunouchi's Past, Present, and Future

1. Strategies for Increasing Social Value

1. CFO Message

1. Progress of Long-Term Management Plan 2030

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

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Index

3 CEO Message

1. Value Creation Story
2. History of Value Creation

1. Value Creation Model
2. Long-TermManagement Plan 2030

1. Marunouchi's Past, Present, and Future

1. Strategies for Increasing Social Value

1. CFO Message

1. Progress of Long-Term Management Plan 2030

35 Business Review

1. Sustainability (ESG) Section

1. Corporate Governance

1. Financial Section

100 Corporate Data

Mitsubishi Estate's Website

CONTENTS