Section 6. Toward Our 100th Anniversary and Beyond

10. Formulation of a New Medium- and Long-Term Management Plan

The five priority items set forth in Design 100 Project Phase II, the medium-term management plan formulated in 2018, resulted in the acquisition of high-quality office buildings in Tokyo, expansion into the Sapporo area, and participation in a development project in Australia. On the basis of those results, we announced the “BUILD NEXT. 2035 Daibiru Group Medium- and Long-Term Management Plan” in May 2023 as our new management plan. The COVID-19 pandemic marked a major turning point in the office building business, and the formulation of our new management plan came in the wake of the need to broaden our corporate value by resolving social issues.

The plan has been given the name “BUILD NEXT. 2035 Daibiru Group Medium- and Long-Term Management Plan: Expanding and Taking on the Challenge of ‘Constructing Buildings, Creating Towns, and Pioneering the Era’ for the Next 100 Years.” This plan sets forth the following two visions and ambitions for 2035.

1. In addition to achieving stable growth in the office rental business, we intend to achieve further growth through diversification of asset types and business operations, and we want to promote urban development that inspires feelings of pride and joy in people.
2. We hope to “pioneer the era” by creating towns and new value in order to resolve social issues together with our customers and both global and local communities.

The quantitative targets have been stated as follows: pre-tax profit of 25 billion yen and total assets of about 1 trillion yen by FY2035 (with total investment during the plan period amounting to about 700 billion yen).
We have established the following business strategies.

• Strategies for business in Japan
  (1) Acquiring new properties, (2) promoting rebuilding and renovation of existing properties, (3) considering asset type expansion, and (4) redevelopment and urban development
• Strategies for business overseas
  (1) Expanding investment in countries with existing investment, (2) investing in new investment countries, (3) new overseas investment (methods and initiatives), and (4) cooperation with Mitsui O.S.K. Lines
• New business strategies
  (1) New businesses, (2) businesses that are not asset-based, and (3) business model diversification

Furthermore, the plan presents the following catalysts for promoting these strategies: (1) synergy with the MOL Group, (2) environmental conservation and sustainability, and (3) digital transformation. As a foundation for supporting business operations, it provides measures for strengthening (1) tenant relations (sales capabilities), (2) pursuing safety and security, (3) finance, (4) organization, systems, and governance, and (5) human resource development and training.