Sumitomo Realty & Development : Quarterly Earning Document

Supplementary Material

Second Quarter of Fiscal 2022

(April 1, 2022 - September 30, 2022)

【Contents】
The Ninth Management Plan (Apr 1, 2022 - Mar 31, 2025)	3
Historical Financial Results	7
Policy for Shareholder Returns	8
Results for the Second Quarter of Fiscal 2022 (Apr 1 - Sep 30, 2022)	9
Forecasts for Fiscal 2022 (Apr 1, 2022 -Mar 31, 2023)	10
Principal New Development Projects	11
ESG Initiatives	19

Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (3)

Positioning of the Ninth Medium-Term Management Plan

Ninth Medium-Term Management Plan is the first step

toward achieving ¥300 billion in ordinary profit for fiscal 2030

Achieve sustainable profit growth by focusing on further expansion of leasing assets

High social contribution of our business itself

Resilient management foundation

Increasing investment capacity and flexibility

and sustainable growth

in capital strategy

1st - 3rd Plan

4th - 8th Plan

9th - 11th Plan

( '98 - '07 )

( '08 - '22 )

( '23 - '31 )

Gross floor area

• Restore asset base damaged by

•

Double our leasing assets

Ordinary Profit

Ordinary Profit

(Thousand

(Billion yen)

the bursting of Japan's bubble

• Strengthen the foundation of each segment

tsubo*)3,500

¥300 billion

* 1 tsubo≈3.3㎡

economy

• Enhance shareholders' equity; lifting the credit

300

3,000

• Reduce interest-bearing debt

rating to the AA zone

250

2,500

200

Gross Floor Area

2,000

(Owned)

150

(right scale)

More than

1,500

+700

100

Thousand tsubo

1,000

50

Ordinary

500

Profit

0

0

'97

'99 '01 '03 '05 '07

'09

'11 '13 '15 '17

'19 '21 '23 (F)

'31 (F)

(Years ended/ending March 31)

Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (4)

Three-year Cumulative Earnings Targets

Consecutive record profit for the period covered

Achieve cumulative ordinary profit of ¥750 billion and profit of ¥500 billion over the three-year period

Aim to achieve record profits for the fourth consecutive plan since the Sixth Management Plan by maintaining the pace of growth attained through the Eighth Management Plan

Three-year cumulative earnings targets
Revenue from Operations	¥	3 trillion	(Vs. 8th Plan	+ ¥	130 billion,	+ 5 % )
Operating Income	¥	770 billion	(	"	+ ¥	83 billion,	+ 12 % )
Ordinary Profit	¥	750 billion	(	"	+ ¥	94 billion,	+ 14 % )
Profit	¥	500 billion	(	"	+ ¥	67 billion,	+ 16 % )
											(Billion yen)
(Three-year	6th Plan		7th Plan		8th Plan			9th Plan
2014-2016		2017-2019		2020-2022			2023-2025
cumulative totals)
	,
Revenue from Operations		2,442			2,886			2,870			3,000
Operating Income		501			613			687			770
Ordinary Profit		418			558			656			750
Profit		238			353			433			500
								(Years ended/ending March 31)

Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (5)

Performance Targets and Strategies by Segment

Maintain the position of office building leasing in Tokyo as a solid foundation, and aim to utilize the comprehensive strengths of the Group as a whole to achieve the targets

						(Billion yen)
Performance Targets
6th Plan	7th Plan	8th Plan		9th Plan
	by Segment
	2014-2016	2017-2019	2020-2022		2023-2025
	(Three-year cumulative totals)
	Leasing	886	1,073	1,219		1,300
	Sales	773	957	822		750
	Construction	589	635	612		700
	Brokerage	177	208	210		250
Revenue from Operations	2,442	2,886	2,870		3,000
	Leasing	314	416	487		520
	Sales	127	140	151		150
	Construction	47	50	55		75
	Brokerage	41	47	44		68
Operating Income	501	613	687		770
Ordinary Profit	418	558	656		750
Profit	238	353	433		500
				(Years ended/ending March 31)

Sumitomo Realty & Development Co., Ltd.