Tokyo Tatemono : Presentation Material for the 3rd Quarter of FY20223906KB

Presentation Material for the First Three Quarters of FY2022 (Ending December 31, 2022)

November 10, 2022

Contents

• Summary
• Consolidated Statement of Income for the First Three Quarters of FY2022
• Consolidated Balance Sheet for the First Three Quarters of FY2022
• Balance of Real Estate for Sale
• Assessment of the Market Environment and Future Policies
• Full-YearEarnings Forecast for FY2022
• Shareholder Returns
• Changes in Major Indicators
• Business Results by Segment
• 1. Commercial Properties Business
  2. Residential Business
  3. Asset Service Business
  4. Other
• ESG-relatedInitiatives

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• Appendix
  Long-Term Vision and Medium-Term Business Plan
  Materiality of the Tokyo Tatemono Group
  Quantitative Plan in Medium-Term Business Plan
  Business Profit
  Materials on Long-Term Vision and Medium- Term Business Plan
  Investment Plan for FY2022 Fair Value of Rental Properties Quarterly Segment Data
  List of Facilities (Leisure Business) Market Data

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Summary

Business Results for the First Three Quarters of FY2022

• In addition to increases in sales and gross profit from for-sale condominiums and property sales to investors, solid performance of leasing of buildings, recording a share of profit of entities accounted for using equity method in overseas businesses, etc. resulted in increased revenue and profit.

Topics

• Completed the Tokyo Tatemono Shijo Karasuma Building EAST, the first new office building in the Shijo Karasuma of Kyoto for approximately 10 years (August)

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Completed the Sustainable Setup Office on the 12th floor of Tokyo Square Garden (September) Opened xBridge-Global, a new hub for global startup companies (October)

GRESB Real Estate Assessment results: received the top-rated"5-star" for the sixth consecutive year, selected for the first time as a "Sector Leader" (October)

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2022/8

Announced

Consolidated Statement of Income

for the First Three Quarters of FY2022

• In addition to increases in sales and gross profit from for-sale condominiums and property sales to investors, solid performance of leasing of buildings, recording a share of profit of entities accounted for using equity method in overseas businesses, etc. resulted in increased revenue and profit.

Unit: ¥ billion	2021/12	2022/12	Increase/
3Q actual	3Q actual	Decrease
Operating revenue	223.1	268.4	45.2
Commercial properties	93.8	114.6	20.7
Residential	83.3	99.6	16.3
Asset service	30.5	37.0	6.4
Other	15.3	17.0	1.7
Operating profit	41.6	55.0	13.4
Share of profit (loss) of entities	0.1	3.0	2.9
accounted for using equity method
Business profit*	41.7	58.0	16.3
Commercial properties	30.3	33.7	3.4
Residential	14.2	20.9	6.6
Asset service	2.6	5.4	2.8
Other	1.1	4.9	3.7
Elimination/Corporate	(6.6)	(7.0)	(0.3)
Non-operating income	4.0	7.0	3.0
Non-operating expenses	6.5	5.4	(1.0)
Interest expense	5.0	4.5	(0.4)
Ordinary profit	39.1	56.6	17.5
Extraordinary income	7.2	0.4	(6.7)
Extraordinary loss	0.3	0.3	(0.0)
Profit before income taxes	46.0	56.7	10.7
Profit attributable to owners of parent	31.4	39.3	7.9

* Business profit = Operating profit + Share of profit (loss) of entities accounted for using equity method

Main factors for increase/decrease

・Operating revenue; Business profit See Business Results by Segment

Recording of share of profit of entities accounted for using equity method, etc.

Effects of hybrid bond issuance costs posted in the previous period, etc.

Decrease in gain on sales of investment securities, etc.

2022/12	Achievement
Full-year
rate
Forecasts
355.0	76%
148.0	77%
131.0	76%
53.5	69%
22.5	76%
61.5	90%
3.0	102%
64.5	90%
40.5	83%
23.0	91%
7.0	78%
4.0	125%
(10.0)	-
7.5	94%
7.5	72%
61.5	92%
2.0	22%
2.0	17%
61.5	92%
41.5	95%
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Consolidated Balance Sheet

for the First Three Quarters of FY2022

• Total assets increased by ¥24.3 billion due to an increase in real estate for sale as a result of the acquisition of land for development of properties for sale to investors.

		Unit: ¥ billion	2021/12-end	2022/9-end	Increase/		Main factors for increase/decrease
		Decrease
Total assets	1,650.7	1,675.0	24.3
							・Real estate for sale
	Current assets	481.2	502.0	20.7
		Increased as a result of further acquisition of land for development of logistics properties,
		Cash and deposits	87.0	66.2	(20.7)		commercial facilities, and for-sale condominiums despite the progress in sales of for-sale
			condominiums and property sales to investors.
		Real estate for sale	344.2	384.7	40.5
		Other	49.9	50.9	0.9
	Non-current assets	1,169.5	1,173.0	3.5
		Property, plant and	813.2	814.9	1.6
		equipment
		Intangible assets	130.8	132.8	1.9
		Investments and other	225.4	225.3	(0.0)
		assets
Total liabilities	1,223.1	1,217.3	(5.7)
							・Interest-bearing debt
	Interest-bearing debt	956.8	940.1	(16.6)		Decrease due to repayments of borrowings, etc.
	Other liabilities	266.2	277.1	10.9
Total net assets	427.6	457.7	30.1		・Shareholders' equity
	Shareholders' equity	324.9	344.4	19.4		Profit attributable to owners of parent +¥39.3 billion, dividends paid -¥11.7 billion, land
	Accumulated other	92.0	102.8	10.7		reevaluation reversal -¥8.2 billion
	comprehensive income		・Accumulated other comprehensive income
	Non-controlling interests	10.6	10.4	(0.1)		Revaluation difference for land +¥8.2 billion
Capital adequacy ratio	25.3%	26.7%	1.4p
Debt equity ratio*1	2.3	2.1	(0.2)		・Net debt equity ratio: 2.0x
Interest-bearing debt / EBITDA	13.3	-	-
multiple*2
*1	Debt equity ratio = Interest-bearing debt / Equity capital
*2	Interest-bearing debt / EBITDA multiple = Interest-bearing debt / (Operating income + Interest & dividend income + Share of profit (loss) of entities accounted for using equity
	method + Depreciation expense + Goodwill amortization expense)

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