Paving the way for sustainable growth in the mid 2020s and beyond,
we are innovating our real estate business and
driving our evolution as global company.
Hiromichi IwasaChairman of the Board and
Chief Executive Officer <Right>
Masanobu KomodaPresident and
Chief Executive Officer
Achievement of Ambitious Aims of the Previous Medium-Term Business Plan
In our previous Medium-Term Business Plan “Innovation 2017”, our objectives were clear: “to be a leader that creates markets and grows continuously, and to secure a solid position globally.” Guided by this plan, we have further strengthened the competitiveness of our domestic business and achieve dramatic growth in our overseas business.
In our neighborhood creation efforts in Japan, we have advanced numerous mixed-use projects, and maximized the attractiveness of urban communities by enhancing and fusing high-quality structural hardware with the added value of the software of services. The many customers who have visited TOKYO MIDTOWN HIBIYA since its opening in March 2018 seem to confirm our success in creating new urban value. In our office building business, the launch of the WORK STYLING Project (multi-site shared offices for corporate clients) has earned praise from companies that are aiming to provide workstyle diversity solutions to their employees and raise productivity in the workplace. In our retail facility business, we opened Mitsui Shopping Park &mall - an omni-channeling platform that delivers the innovative shopping experience of an e-commerce shopping mall operating in close collaboration with real brick-and-mortar stores. Offering an expansive range of merchandise centered on fashion to lifestyle products, it already being enjoyed by a large and growing customer base.
From our participation in America's largest private real estate development - the 50 Hudson Yards Project (tentative name) in New York to a hotel project in Taiwan and a condominium project in the Philippines, the Group’s overseas business has achieved big results in both asset class expansion and our entry into new countries and regions. We expect that our global businesses will continue to be a driving force in our group in FY2018 and onwards.
The results speak for themselves. In the final fiscal year of our business plan ending on March 31, 2018, our consolidated results showed operating income of 245.9 billion yen and profit attributable to the owners of the parent of 155.8 billion yen – both exceed our targets and represent the significant growth of our revenues.
“VISION 2025” –The New Mitsui Fudosan Group Long-Term Vision
The prospects of the external business environment are considered to indicate continued moderate expansion of the environment both domestically and internationally for the present; however, it is essential to be ever mindful of market changes driven by growing uncertainty. Especially in Japan, we are seeing the full-fledged progression of population decline, low birthrates and the aging of society. In addition, the accelerated evolution of ICT and other technological advances combined with further diversification and fragmentation in perceptions of value, and a rising awareness of corporate social responsibilities and social sustainability issues are expected to dramatically transform business environment in which our Group operates.
Based on this view of the environment, the Mitsui Fudosan Group believes that it will be crucial to innovate the real estate business and to achieve further globalization with the aim of attaining sustainable growth into the mid-2020s and beyond. In order to execute strategies from a long-term perspective, the Mitsui Fudosan Group has formulated “VISION 2025”.
Basic Strategies and Main Initiatives
Under “VISION 2025”, the Mitsui Fudosan Group has articulated three policies that will put on clear course to our destination: “Successfully establish a sustainable society through the creation of neighborhoods”, “Harness technology to innovate the real estate business”, and “Evolve into a global company”. In addition, we are executing three basic strategies in pursuit of our vision: “Customer-centered management”, “Business innovation” and “Evolution of Group management”.
“Customer-centered management” looks at how fewer hope for a quantitative expansion of needs in the face of a decreasing population and focuses our attention on the consequent qualitative changes in customers and especially the importance of undercovering and early identification of latent customer needs. “Business innovation” defines our Group's attitude and readiness to innovate the real estate business itself and reshape how we create neighborhoods by making extensive use of digital technology. “Evolution of Group management” is essential to responding to future blurring of boundaries between the various business domains of office buildings, retail properties and housing, and to the diversification of customer needs. By evolving our management in pursuit of collaboration among our Group companies, we aim to realize synergies that exceed merely the sum of our corporate parts.
With these basic strategies providing our direction, we have adopted three main initiatives: “Drive further evolution in the creative of neighborhoods”, “Innovate business models by harnessing real estate technology”, and “Dramatically grow the overseas business”.
For the initiative “Drive evolution in the creation of neighborhoods”, we believe that a fundamental change in the approach is essential. Rather than development from the standpoint of individual residential properties, office buildings and other standalone assets, it is necessary to create neighborhoods and to shift our focus from the hardware of building facilities and space to a role as a provider of business and daily lifestyles. This approach to the creation of neighborhoods positions people as the centerpiece. Our aspiration is to create neighborhoods where worker productivity improves just by being in this environment, residents can live comfortable and healthy lifestyles, and visitors can find stimulation and enjoyment.
Our initiative to “Innovate business models by harnessing real estate technology” will be indispensable to enhancing our corporate competitiveness by aggressively leveraging information and communication technology (ICT) to provide offices that contribute to enhanced productivity, residences that support more comfortable and healthier living, and retail facilities that are high in convenience and stress free. We want to innovate our real estate business with ICT and accelerate the creation of new businesses such as “WORK STYLING” and “Mitsui Shopping Park &mall”. In addition, through the collection and utilization of the large amounts of data from the towns, neighborhood, office building, residential properties and retail space in which the Group is engaged, we will be able to innovate our real estate business.
Our third initiative “Dramatically grow the overseas business” calls on us to renew our awareness and further leverage the integrated strengths of Mitsui Fudosan Group that comprise our overseas business – the comprehensive range of products from office buildings and retail properties to housing and hotels, and the diversity of functions from investment and development to operation and marketing of real estate. We shall endeavor to steadily advance our business and secure excellent business opportunities by continuing to take full advantage of comprehensive strengths that are rare even on the global stage while cultivating new partners and deepening relationship with existing partners in accordance with our overseas partner strategy.
Furthermore, in order to support the pursuit of these initiatives, we are strengthening our internal corporate infrastructure with: human resource strategies to promote further diversity, organizational changes and systems to encourage innovation, and robust governance and strictly enforced compliance.
Achieve a sustainable society and drive sustainable profit growth by addressing ESG issues based on the Mitsui Fudosan “&” logo.
Seeking to coexist in harmony with society, link diverse values, and achieve a sustainable society, as symbolized by the Mitsui Fudosan “&” logo, we have undertaken a variety of initiatives to address ESG issues. In formulating “VISION 2025”, we were reminded of the role that our approach plays in supporting the sustainable growth and enhancing the corporate value of our Group, and have assigned it a high priority in our plan. With all Group employees, managers and directors taking the initiative in tackling our objectives, we can contribute to the realization of a sustainable society.
Mitsui Fudosan Group will execute the strategies laid out in our Group’s long-term vision “VISION 2025”, and by innovating our real estate business and pursuing further globalization, we shall pave the way for our sustainable growth into the mid 2020s and beyond.