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President

Business Results for the First Half of the Fiscal Year

The financial results for the first half of the consolidated fiscal year ending March 31, 2022 are as shown in the table below. Despite continued restrictions to economic activity due to the COVID-19 pandemic, we achieved increases in operating income and ordinary profit, with ordinary profit a record-high for an interim period.
Both the mainstay office building business and the brokerage business for second-hand condominiums and other properties lead our performance, posting increases in revenue and profit. In addition, the condominium sales business and the Shinchiku Sokkurisan remodeling business also performed in line with our plans, with increases in contracts and orders.

For the fiscal 2021 ending March 31, 2022, we have made firm progress toward the goals we set at the beginning of the fiscal year of achieving a record-high ordinary profit after a 2-year dip and the ninth consecutive year of record-high profit.

Reflecting this performance, we have increased the interim dividend by 3 yen to 22 yen per share as planned.(Please refer to the table at reference)

Results for the Second Quarter of Fiscal 2021

(Billions of yen)

Sep '20 Results Sep '21 Results Increase/
Decrease
Revenue from operations 515 481 (34)
Operating income 133 136 +3
Ordinary profit 130 133 +3
Profit attributable to owners of parent 97 91 (6)
FY'21
(Forecasts)*
Achieved
920 52%
228 60%
221 60%
150 61%

*Announced on May 13, 2021

As a member of the Sumitomo Group with a history of more than 400 years, we have traditionally been practicing Sustainability Management focusing on ESG. Our initiatives in our mainstay businesses, such as the redevelopment of central Tokyo and Shinchiku Sokkurisan remodeling contribute not only to economic value in terms of business performance but also to the realization of a sustainable society by addressing issues like disaster prevention and the environment. Therefore, pursuing our businesses in itself contributes to ESG.
In July, we established the ESG Promotion Office to further accelerate our disclosure of these initiatives. We will continue to contribute to solving a variety of social issues, such as those concerning the environment, including climate-change countermeasures.

In Japan, COVID-19 case numbers have decreased, prompting heightened expectations of economic normalization. However, the outlook remains unclear, with increasing concern about the prospect of a sixth wave of infections. Going forward, as we monitor developments during the COVID-19 pandemic and in the post-pandemic era, we will make further efforts to improve our corporate value through sustainable growth.

Progress of the Eighth Management Plan

The Company has been operating under the Eighth Management Plan since April 2019. Despite the record-high results for the seventh consecutive year in the fiscal 2019, the first year of the plan, declines in revenue and profit were unavoidable due to the impact of COVID-19 in the fiscal 2020, the second year of the plan. The table below shows the forecasts for the fiscal 2021, current and the final year of the Plan, and the 3-year cumulative 8th Plan forecasts. Although we will not reach the initial targets for the Eighth Plan, which were formulated before the COVID-19 pandemic, operating income and ordinary profit are expected to exceed by 10-20%, compared to the Seventh Plan, which marked a record-high results.
We will strive to steadily achieve our forecasts for current fiscal year so that we will be able to reach record-high profits for the third consecutive management plan, from the Sixth Management Plan through to the Eighth.

(Billions of yen)

7th Plan Results
“Apr ’16-Mar ’19”
Revenue from operations 2,886
Operating income 613
Ordinary profit 558
FY2019 FY2020 FY2021
Forecasts
8th Plan Forecasts
(Three−year cumulative)
1,014 917 920 2,851
234 219 228 682
221 210 221 651
Vs. 7th Plan
(35)
+68
+94
8th Plan Targets*
“Apr ’19-Mar ’22”
3,100
740
700

*Announced on May 16, 2019

(Reference)

Cash Dividend per Share

(Yen)

Fiscal 2020 Fiscal 2021 YoY Change
Interim 19 22 +3
Year end 21 23(Forecast) +2
Annual 40 45(Forecast) +5

Cash Dividend per Share and Profit*

*Profit refers to profit attributable to the owners of parent.