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Medium-Term Vision

Medium-Term Vision 2018 - For Further Growth -

To be increasingly chosen, is where our new challenge begins.

Revising Strategies to Match Changing Market

To address market change, such as continuing development boom for Class A buildings in central Tokyo, rising construction cost, and higher property prices in the Greater Tokyo Area, we revise strategies in each business areas as follows;

Office business

  • Shift from emphasis on "build-and-own" to "build-and-sell" approach
  • Expand the range of development projects by collaborating with other companies
    (Enhance collaboration, such as rebuilding properties owned by Kenedix, Inc. and J-REIT, etc.)
  • Strengthen CRE proposals in various fields to NTT Group companies
  • Participate in regional redevelopment projects
  • Start feasibility studies for development of assets currently in use for tentative purposes
  • Launch private-placement REITs, scheduled in FY2015, to utilize as a potential buyer of developed property of us Expand the amount of assets under management (AUM) to generate management fees
  • Strategic renewal such as BCP of flagship buildings

Retail / Hotel Property Business

  • Undertake hotel projects in Kyoto and Osaka area targeting primarily tourists from abroad
  • Launch mixed use (such as retail and residential use) property development projects in central Tokyo

Residential Business

  • Shift away from delivery-oriented strategy to profit-oriented strategies and keep a level of supply at about 1,300 units per year
    (before revision: FY2015 1,600units, FY2018 2,000units)
  • Place greater weight on developing higher-value units, such as high grade condo for sale and mixed use development
  • Collaborate with NTT Group to develop serviced rental condos for the elderly
  • Enter new business areas, such as conversion of office buildings to residential use

Global Business

  • Increase profits from global business to about 10% of the total profits by FY2018

Financial Targets Going Forward

Table：Financial Targets Going Forward

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  • *Operating revenue and operating income above include revenue and income from asset sales

Investment and Land Acquisition (FY2014-FY2018)

  • Set the investment target for the 5-year period of FY2014-18 at around 360 billion yen
    (including land-bank investment for "build-and-sell" model)
  • Plan to spend about 20 billion yen per year in acquisition of land for condo development

Acceleration of Capital Cycle

  • Plan to sell assets totaling 150-200 billion yen in the 5-year period starting FY2014 to J-REITs, private-placement funds and others and to use as a part of the proceeds for investment

Control of Interest-Bearing Debt

  • Keep interest-bearing debt at the end of FY2018 at the current level (about 500 billion yen)
    (before revision: Net interesting-bearing debt to EBITDA ratio 9 times at the end of FY2018)

Manage businesses with focus on key indicators (ROE, ROA, Net Debt/Equity ratio, Net interesting-bearing debt to EBITDA ratio etc.)

Development Pipeline

Table：Development Pipeline

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  • *Above projects are subjects to change.

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