Preparation for Metsä’s opening, basic design and acquisition of development land

「During the first half of the current fiscal year, Metsa Village opened on 9 November 2018 and Moominvalley Park on 16 March 2019, enabling the Group to begin recording revenue from admission fees, paid facility-use fees, merchandise, food and beverages, tenant rents and parking fees, among other sources.」

「During the first quarter of the current fiscal year, Metsa, comprising Metsa Village and Moominvalley Park, which began construction in July 2017, was completed in October 2018. Metsa Village opened ahead of schedule on 9 November 2018, and began recording revenue from tenant rents and fees for use of various facilities and services. Metsa Village attendance exceeded 100,000 on 2 December 2018 and remained on track. Moominvalley Park was scheduled to open on 16 March 2019.」

「For Metsa Village, tenant agreements, including with Nordic companies, progressed with the opening date set for 9 November 2018. For Moominvalley Park, the grand opening date was set for 16 March 2019, and preparations such as the design of various content proceeded. Construction of the facilities had reached the topping-out stage, except for certain areas, and finishing work on the interiors and exteriors was under way. Work also progressed on landscaping around the facilities, detailed operating procedures and recruitment of operating staff.」

「Construction began under a contract for the specialised interior and exterior work at Moominvalley Park. For Metsa Village, tenant agreements, including with Nordic companies, progressed with the opening date set for 9 November 2018. Other preparations for opening, including recruitment of opening staff, also proceeded.」

「Construction of Metsa progressed as infrastructure trunk lines and civil engineering work advanced into foundation work, in line with the plan. We agreed with the local government, the City of Hanno, that Hanno would contribute ¥150 million toward the cost of facilities required to open Metsa Village in December 2017 and signed a memorandum of understanding. In addition, Hanno Regional Resources Utilisation GK, a subsidiary and special-purpose company holding the real estate for Moominvalley Park, entered into a silent partnership agreement with Hanno under which Hanno contributed ¥50 million toward construction and development.」

「Construction of Metsa began in July 2017, and financing through the real estate securitisation of Moominvalley Park was completed, marking a major milestone in addressing the Metsa project's financing challenge.」

「The Company obtained development permission from the local government, the City of Hanno, dated 29 May 2017, and on 29 June 2017 entered into a construction contract for Metsa Village civil engineering work with a joint venture comprising 3 local construction companies. Construction of Moominvalley Park was contracted on 29 June 2017 by Hanno Regional Resources Utilisation GK, a special-purpose company that became a subsidiary on 12 July 2017, and construction of both projects began on 3 July 2017.」

「Preparations for Metsa's opening proceeded. The project moved into the detailed design phase for the buildings, infrastructure and other facilities, while construction costs were estimated based on the detailed design and financing discussions proceeded in parallel. The Company also held preliminary discussions with the local government in preparation for its application for development permission and submitted the application on 2 May 2017. The Company expected to receive permission in June 2017.」

「Preparations for Metsa initially proceeded with an opening planned for 2017, but we concluded that a longer construction period and additional preparation time than initially anticipated would be necessary to create facilities that fully embody the Metsa concept, including the construction of infrastructure across the extensive site. Accordingly, at a meeting of the Company's Board of Directors held on 6 December 2016, it resolved that the opening of Metsa Village would change to autumn 2018 and the grand opening of Moominvalley Park would change to spring 2019.」

「Metsa, a facility where visitors can experience a Nordic atmosphere and the world of the Moomins, completed its basic design after the formulation and validation of its business concept and basic plan, based on extensive marketing.」

「During the third quarter, we completed the formulation and validation of the business concept and basic plan and moved into basic design. We plan to announce the opening date during 2016. Payment of the purchase price and handover of the Metsa development land were completed on 31 May 2016 under the sale and purchase agreement dated 30 June 2015.」