investor presentation · • remodeling business: become the leading brand for high-value-adding...
TRANSCRIPT
Investor Presentation
February 2015
www.mitsuifudosan.co.jp/english
1
Contents
1.About Mitsui Fudosan1-1 Highlights 31-2 Performance Highlights 41-3 Financial Highlights 51-4 Long-Term Business Plan Innovation 2017 61-5 Summary of The Offering 9
2. Core Businesses: Overview & Strengths2-1 Leasing
2-1-1 Analysis of Revenue 122-1-2 Premier Assets (Office Buildings) 132-1-3 Premier Assets (Retail Facilities) 142-1-4 Mitsui Fudosan’s Strengths (Office Buildings) 152-1-5 Pipeline (Office Buildings) 162-1-6 Create Neighborhoods in Nihonbashi and Yaesu 172-1-7 Mitsui Fudosan’s Strengths (Retail Facilities) 182-1-8 Pipeline (Retail Facilities) 19
2-2 Property Sales2-2-1 Mitsui Fudosan’s Strengths 212-2-2 Major Projects (Property Sales to Individuals) 222-2-3 Mitsui Fudosan’s Strengths
(Property Sales to Individuals) 232-2-4 Pipeline (Property Sales to Individuals) 242-2-5 Model for Cooperation with Investors 252-2-6 Model for Cooperation with Investors
(Logistics facilities) 26
2-3 Management2-3-1 Mitsui Fudosan’s Strengths 282-3-2 Mitsui Fudosan’s Strengths
(Property Management) 292-3-3 Mitsui Fudosan’s Strengths
(Brokerage, Asset Management, etc.) 302-4 Global Business 31
3. Summary of Results for the Nine Months Ended Dec. 31, 2014 (FY 2014)3-1 Consolidated Income Summary (Overall) 353-2 Consolidated Segment Revenue & Operating Income 363-3 Consolidated Balance Sheet Summary 37
4. Forecast for the Year to March 2015 (FY 2014)Consolidated Income Summary 39
5. Summary of Results for the Year Ended March 31, 2014 (FY 2013)5-1 Consolidated Income Summary (Overall) 415-2 Consolidated Segment Revenue & Operating Income 425-3 Consolidated Balance Sheet Summary 43
Appendices (Market Trends)Appendix 1 Leasing Business Market Trends (Office Buildings) 46Appendix 2 Leasing Business Market Trends
(Retail Facilities) 49Appendix 3 Property Sales Business Market Trends
(Property Sales to Individuals) 50Appendix 4 Property Sales Business Market Trends
(Property Sales to Investors) 51Appendix 5 Shareholder Composition 52Appendix 6 Operating Income by Segment 53
Disclaimer 54
1. About Mitsui Fudosan
Property Sales ManagementLeasing(Office Buildings /Retail Facilities/Others)
3
Revenue from Operations 1,515 billions of yen
OfficeBuildings
63%
RetailFacilities35%
Others2%
Property Sales to Individuals
84%
Property Sales to Investors 16%
PropertyManagement
72%
Brokerage AssetManagement, etc 28%
6,557units
AUM
3.32trillion yen
Office Buildings2,738 thousand ㎡
Retail Facilities1,714 thousand ㎡
Mitsui Fudosan Highlights (For the year ended March 31, 2014)
1. About Mitsui Fudosan1-1 Highlights
(Property Sales to Individuals / Property Sales to Investors)
(Property Management / Brokerage Asset Management, etc)
Leased Floor Space
(Incl. ManagedProperties)
Units booked(Condominiums)
Sales Ratio Sales
RatioSales Ratio
94.1 95.5 88.9 95.6 104.3 109.2 102.0
38.8 29.7 32.134.3
41.549.9
50.0
49.2
12.4 16.115.7
23.027.0 46.0
171.5
120.5 120.0126.0
148.1
172.5183.0
163.0
240.0
0
50
100
150
200
250
3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 (E) 3/2015 (T) 3/2018 (G)-106 -171 -171 -197 -208Other* -136 -150 0-110
4
1-2 Performance Highlights1. About Mitsui Fudosan
Depreciation(Billions of yen) 48.8 50.2 52.9 53.2 59.0 56.0 60.0 - -
Cash dividendsper share (Yen) 22 22 22 22 22 22 22 - -
Payout ratio (%) 23.1 32.2 38.7 38.5 32.5 25.1 21.5 *2 - -
Long-Term Business Plan(Billions of yen)
Net income (Right)
Operating income (Left)
Leasing Property salesManagement
*1 Other include Mitsui Home, other segments and nonconsolidated general & administrative expenses. *2 Before considering capital increaseThe figures of FY2013 or after reflect the effect of the SPC consolidation.
83.5
60.0
49.9 50.1
59.4
76.8
90.0
67.0
110.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
(As of April, 2012)(Billions of yen)
Other *1
1,740.0 1,743.4
2,120.2
2,040.0
2,230.02,100.0
1,019.9 1,078.11,181.1
1,274.3
1.71 1.62
1.80
1.60
1.50
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3/2011 3/2012 3/2013 3/2014 3/2015 (E) 3/2018 (G)
5
1-3 Financial Highlights1. About Mitsui Fudosan
(Billions of yen)
(Left) Interest-bearing debtShareholders’ equity
(Times)
(Right)Debt/Equity ratio
Long-Term Business Plan
Due to SPC consolidation
B/S as of March 31, 2014
Market value 3,472.6 3,168.0 304.6Book value 2,256.7 2,247.5 9.2Unrealized gain 1,215.9 920.4 295.4
Change
◆Rental properties (Billions of yen)At March 31, 2014(FY2013 Year-end)
At March 31, 2013(FY2012 Year-end)
※The Long-term Business Plan is on a April 2012 disclosure basis
4,548.8 4,548.8Assets Debt and Equity
(Billions of yen)
Real property for sale(including advancespaid for purchases)
961.4Interest-bearing debt 2,040.0
Other 1,183.3
Other 1,061.2
2,526.1Tangible and intangible
fixed assets
(Rental properties) (2,256.7)
(Shareholders' equity) (1,274.3)
Net assets 1,325.4
◆Changes in D/E Ratio
2.22 2.00
1.86 1.40
1.33
1.60 1.77
1.73 1.71 1.62 1.80 1.60
1.00
1.50
2.00
2.50
3/'03 3/'04 3/'05 3/'06 3/'07 3/'08 3/'09 3/'10 3/'11 3/'12 3/'13 3/'14
*1 Expectation of D/E ratio does not consider the impact of capital increase
*1
(Times)
6
1-4 Long-Term Business Plan Innovation 2017
FY2012 Actual FY2013 ActualFY2014
Estimatesas of May, 2014
Long-Term Business Plan(on a April 2012 disclosure basis)
FY2014 Targets FY2017 Goals
Operating income ¥148.1 billion ¥172.5 billion ¥183 billion ¥163 billion ¥240 billion or
higher
Net income ¥59.4 billion ¥76.8 billion ¥90 billion ¥67 billion ¥110 billion or higher
ROA 3.66% 4.07% ― Approx. 3.8% Approx. 5.5%
Debt/Equity ratio 1.80 1.60 ― Approx. 1.8
times Approx. 1.5 times
Interest-bearing debt ¥2,120.2 billion ¥2,040.0 billion ¥2,230 billion ¥2,160 billion Approx. ¥2,100
billion
Operating income by segment
FY2012 Actual FY2013 ActualFY2014
Estimatesas of May, 2014
Long-Term Business Plan(on a April 2012 disclosure basis)
FY2014 Targets FY2017 Goals
Leasing ¥104.3 billion ¥109.2 billion ¥102 billion 95 billion 128 billion
Property sales ¥23.0 billion ¥27.0 billion ¥46 billion 39 billion 60 billion
Management ¥41.5 billion ¥49.9 billion ¥50 billion 40 billion 52 billion
Earnings Targets, Segment Earnings Targets, and Benchmarks
1. About Mitsui Fudosan
60% of total overseas investment will be in Europe and N. America, 40% will be in Asia
7
(Billions of yen)
Investment Plan
* The investment amounts indicated above are approximate figures and include equity investments.
Area and Type FY2012(Actual)
FY2013(Actual)
FY2014 Estimatesas of May,
2014
3 Years Total
DomesticCapital
expenditures66.0 123.0 163 352
OverseasCapital
expenditures(Europe, North America
& Asia)
48.0 37.0 102 187
Long-Term Business Plan Innovation 2017(on a April 2012 disclosure basis)
FY2012~2014 FY2015~2017 FY2012~2017 Total
300~400
400~500
Approx. 800(cost recovery 200)
200~300
200~300
Approx. 500(cost recovery 100)
Real propertyfor sale
(Domestic)389.0 378.0 395 1,162
1,000~1,100
1,300~1,400
Approx. 2,400(cost recovery 2,400)
1-4 Long-Term Business Plan Innovation 20171. About Mitsui Fudosan
Two-thirds of total investment will be in property sales to individuals, one-third will be in property sales to investors
8
Create neighborhoods• Larger, higher quality portfolio in central Tokyo area• Quickly bring planned developments on stream• Promote the Smart City
Evolve the housing business• Increase units supplied and profitability in property sales to
individuals• Housing brokerage business: maintain No. 1 position• Remodeling business: Become the leading brand for high-
value-adding remodeling
Evolution of our model for cooperation with investors• Add new asset classes, including logistics facilities• Expand assets under management
(sponsored REITs, private REIT)
Be more active in Europe, North America and Asia• Europe & N. America: Build up a portfolio mainly consisting of
offices for lease• Asia: Be more active in developing housing, retail facilities & office
buildings5 Hanover Square
(London)Shanghai New Town Development Project
Strengthen the Competitiveness of Our Domestic Business
Develop Global Operations
Mitsui Housing Mall Central Desk
Mutual cooperation among group companies
Customer Communication
Mitsui Housing Mall
New condos & detached homes
Leased housing
RemodelingCustom –built homes
Previously owned condos
& detached homes
Mitsui Fudosan
ResidentialMitsui
RehouseMitsui Home
MitsuiReform
Mitsui Fudosan Housing Lease
1-4 Long-Term Business Plan Innovation 20171. About Mitsui Fudosan
Executing Our Rich Development Pipeline
Take Advantage of New Business Opportunities(Business/Asset Class/Region)
A chance to achieve new growth
9
New Shares offered 110,000,000shares Total Amount to be Paid 330.9 billion yen※Payment Date:June23 and 23,July22,2014
Background for the offering
Current Situation of Mitsui Fudosan GroupStable progress in Long-Term Business
Plan“Innovation2017”
Advanced Achievement of our
Income Target in FY2014
Rich Development Pipeline
(Mixed-Use Development)
Dynamic Change in Macro EnvironmentImproved Business Conditions
Abenomics
Tokyo Olympics& Paralympics
National StrategicSpecial Zone
Our Strategies
Creativity that Results in High Value-Added
Reinforcement of Financial Position
Future Opportunities
1. About Mitsui Fudosan1-5 Summary of The Offering
Improvement of InfrastructureStrengthen Tokyo’s International Competitiveness
2. Core Businesses: Overview & Strengths
2-1. Leasing Business
12
2-1-1 Analysis of Revenue 2-1. Leasing Business
Analysis of Leasing Segment Revenue
A well-balanced portfolio between office buildings and retail facilities
56.9 68.2 92.2 107.3 121.9 125.8 131.5 148.6 157.8
222.0 234.2
265.5
303.4 303.0 291.7 283.6
286.9 284.5
0
50
100
150
200
250
300
350
400
450
500
3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014
Office buildingsRetail facilities
(Billions of yen)Revenue: ¥449.6 bn(FY ended March 2014)
Domesticoffice buildings¥254.8 bn
57%Overseas officebuildings¥29.7 bn
7%
Retail facilities157.8 bn
35%
Other¥7.2 bn
1%
13
2-1-2 Premier Assets(Office Buildings)
Nihonbashi Muromachi East District Development Projects (2014)
GranTokyo North Tower (2007)
Tokyo Midtown (2007)
Kasumigaseki Building (1968)
Nihonbashi 1-ChomeMitsui Building (2004)
Sumitomo Mitsui Banking Corporation Head Office
Building (2010)
Akasaka Biz Tower(2008)Gate City Ohsaki (1999)
2-1. Leasing Business
14
LaLaport TOKYO-BAY (1981)
MITSUI OUTLET PARK SHIGA RYUO( Expanded in 2013)
MITSUI OUTLET PARK JAZZ DREAM NAGASHIMA(Expanded in 2011)
Urban Dock LaLaport TOYOSU (2006)
LAZONA Kawasaki Plaza (2006) LaLagarden KAWAGUCHI (2008)
LaLaport YOKOHAMA(2007)
MITSUI OUTLET PARK KISARAZU(Expanded in 2014)
Koujun Building (2004)
2-1-3 Premier Assets (Retail Facilities)2-1. Leasing Business
15
2-1-4 Mitsui Fudosan’s Strengths (Office Buildings)
Office Building Revenue by Area (FY ended March 2014; nonconsolidated)
Stable, Long-Term Relationships with Approximately 3,000 Tenant Companies
Office Building Lease Contract Duration(FY ended March 2014; nonconsolidated)
A portfolio concentrated in central Tokyo and relationships with quality tenants (3,000 companies)
Average contract duration: 4.2 years
38%
43%
19%
5.1 years or more
2 yearsor less
2.1-5 years78%
15%
7%Other metropolitan Tokyo
Regions
5 Wards of centralTokyo
2-1. Leasing Business
16
Major Newly on-stream Projects and full-term contribution Projects(completed in FY2013・FY 2014)
(仮称)日本橋二計画
Major Newly Projects(to be completed after FY2015)
Nihonbashi Muromachi East DistrictDevelopment Project
Iidabashi Grand Bloom GATE SQUARE Sapporo Mitsui JP Building
Kita-Shinagawa 5-Chome Block 1 Redevelopment Project
Nihonbashi 2-Chome Redevelopment Project(Block C)
Hibiya Project
FY Completed
Project Name(*Jointly owned property) Location Rentable Floor
Space
2013Muromachi Furukawa MitsuiBuilding*
Chuo-ku, Tokyo ≈ 19,600 ㎡
Muromachi Chibagin MitsuiBuilding*
Chuo-ku, Tokyo ≈ 9,300 ㎡
2014
8-10 Moorgate City, London ≈ 12,100 ㎡
GATE SQUARE(Kashiwanoha Campus Block 148)
Kashiwa,Chiba ≈ 8,000 ㎡
Sapporo Mitsui JP Building* Sapporo, Hokkaido ≈ 25,400 ㎡
1200 17th Street * Washington D.C. ≈ 15,600 ㎡
Iidabashi Grand Bloom* Chiyoda-ku, Tokyo ≈ 71,300 ㎡
70 Mark Lane City, London ≈ 16,400 ㎡
FY Completed
Project Name(*Jointly owned property) Location Total Floor Space
(Site Area)
2015Kita-Shinagawa 5-Chome Block 1 Redevelopment Project*
Shinagawa-ku, Tokyo ―
270 Brannan Project* San Francisco ≈ 19,800 ㎡
2016 1 Angel Court Project* City, London ≈ 45,900 ㎡
2017Hibiya Project Chiyoda-ku, Tokyo ≈ 189,800 ㎡
Shin-Tokyo Takeda Building* Chuo-ku, Tokyo ≈ 45,000 ㎡
2018Nihonbashi 2-Chome Redevelopment Project (Block C)* Chuo-ku, Tokyo ≈ 143,400 ㎡
55 Hudson Yards* New York ≈ 117,600 ㎡
2019
Nihonbashi Muromachi 3-Chome Urban Redevelopment Project* Chuo-ku, Tokyo ≈ 169,000 ㎡
OH-1 Project (Otemachi 1-Chome Block 2)* Chiyoda-ku, Tokyo ≈ 361,000 ㎡
TGMM Shibaura Project*(Overall completion:FY2019) Minato-ku, Tokyo ―
After2020
Yaesu 2-Chome Central Block Project* Chuo-ku, Tokyo ≈ 380,000 ㎡
Yaesu 2-Chome North Block Project* Chuo-ku, Tokyo TBD (≈14,900㎡)
Nihonbashi Muromachi 1-Chome Project* Chuo-ku, Tokyo TBD (≈8,000㎡)
Nihonbashi 1-Chome Block1,2 Project* Chuo-ku, Tokyo TBD (≈7,000㎡)
Nihonbashi 1-Chome Central Block(4~12 Square) Project*
Chuo-ku, Tokyo TBD (≈23,000㎡)
TBD Toyosu 2-, 3-Chome Block 2 Project * Koto-ku, Tokyo ≈ 243,200 ㎡
Using our development capabilities to continuously improve our portfolio
Each FY completed and total floor space may change in the future. Some project names are tentative.
2-1-5 Pipeline (Office Buildings)2-1. Leasing Business
17
日本橋二丁目再開発計画
Project Map Leasable area classified by use at the date of completion
Office67.5%
Residential3.3%
Retail11.5%
Hotel16.7%
Others1.0%
◆Tokyo Midtown
2-1-6 Create Neighborhoods in Nihonbashi and Yaesu
Hibiya Project
Nihonbashi 2-Chome UrbanRedevelopment Project (Block C)
Newly Projects(Completed in or after FY2015, Under development or in planning)Newly Opened Projects(Complete in FY2013・FY2014)Other Existing Projects
OH-1 Project(Otemachi 1-Chome Block2)
Nihonbashi Muromachi 3-Chome Development Project
Muromachi-FurukawaMitsui Building
(Completed in FY2013)
Muromachi-ChibaginMitsui Building
(Completed in FY2013)
Nihonbashi 1-ChomeCentral Block
(4~12 Square) Project
Yurakucho Sta.
Tokyo Sta.
Nihonbashi Sta.
Nihonbashi
2-1. Leasing Business
Office58.8%
Residential15.6%
Retail7.8%
Hotel11.9%
ServiceApartment
2.2%Others
3.7%
◆Nihonbashi Area・Nihonbashi Mitsui Tower・Muromachi Higashi Mitsui Building・Muromachi Furukawa Mitsui Building・Muromachi Chibagin Mitsui Building
47%
34%
8%6%
5%
18
Sales at Mitsui Fudosan Retail Facilities
Ratio of Fixed & Sales-Linked Rent by Category(FY ended March 2014)*
Urban facilities
Retail Facility Revenue by Category(FY ended March 2014)*
2-1-7 Mitsui Fudosan’s Strengths (Retail Facilities)
Diverse types of facilities and a stable revenue structureRelationships with 2,100 tenant companies
Other
*Includes master-leased properties *Includes master-leased properties
*Revenue from operations derived from LaLaport Tokyo Bay has declined during the fiscal year ended March 31, 2013 owing to the partial closure of facilities.
0
20
40
60
80
3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014
LaLaPort TOKYO BAY LAZONA Kawasaki LaLaPort TOYOSU LaLaPort YOKOHAMA
(Billions of yen)
80%65%
93%78%
20%35%
7%22%
0%
20%
40%
60%
80%
100%
120%
LaLaport Outlet Others All Facilities
Fixed rent Sales-linked rent
2-1. Leasing Business
19
2-1-8 Pipeline (Retail Facilities)
Major Newly Opened ProjectsFY
OpenedProject Name
(*Jointly owned property) Location Store Floor Space
2013
MITSUI OUTLET PARK SHIGA RYUO (2nd stage) Gamo-gun, Shiga ≈ 10,000 m2
LoveLa2 Niigata, Niigata ≈ 11,200 m2
LaLaport TOKYO-BAY West Area Reconstruction Project Funabashi, Chiba ≈ 24,000 m2
COREDO Muromachi2 * Chuo-ku, Tokyo ≈ 13,600 m2
COREDO Muromachi3 * Chuo-ku, Tokyo ≈ 5,000 m2
Ikebukuro Globe Toshima-ku,Tokyo ≈ 4,400 m2
2014
LaLaTerrace MUSASHIKOSUGI* Kawasaki, Kanagawa ≈ 8,100 m2
MITSUI OUTLET PARK SAPPORO KITA-HIROSHIMA (2nd stage)
Kita-Hiroshima, Hokkaido ≈ 7,700 m2
MITSUI OUTLET PARK KISARAZU(2nd stage) Kisarazu, Chiba ≈ 8,500 m2
LaLaport KASHIWANOHA(North Building) Kashiwa, Chiba ≈ 7,500 m2
Akarenga TERRACE* Sapporo, Hokkaido ≈ 8,500 m2
IIDABASHI SAKURA TERRACE* Chiyoda-ku, Tokyo ≈ 4,900 m2
LaLaport IZUMI Izumi, Osaka ≈ 55,000 m2
MITSUI OUTLET PARK KUALA LUMPUR INTERNATIONAL AIRPORT*
Kuala Lumpur,Malaysia ≈ 46,300 m2
Shin-Kawasaki Square Kawasaki, Kanagawa ≈ 11,000 m2
2015
LaLaport FUJIMI Fujimi, Saitama ≈ 80,000 m2
MITSUI OUTLET PARK HOKURIKU OYABE Oyabe, Toyama ≈ 26,000 m2
MITSUI OUTLET PARK MAKUHARI(3rd stage) Chiba, Chiba ≈ 6,400 m2
LaLaport EBINA Ebina, Kanagawa ≈ 54,000 m2
Osaka Expoland Site Plan Suita, Osaka ≈ 88,000 m2
Taiwan Linkou Outlet Project* Linkou District, New Taipei City ≈ 45,000 m2
TBD
Retail Facility Development Project in Hiratsuka Hiratsuka, Kanagawa TBDRetail Facility Development Project in Nagoya Nagoya, Aichi TBDRetail Facility Development Project in Togocho, Aichi Aichigun,Aichi TBD
Large-scale Renewal Projects
Execution Period Facility NameNo. of Stores Renewed / Total No. of Stores
February-September 2013 LaLaport YOKOHAMA 133/279
March-April 2013 LaLaport KASHIWANOHA 76/150
April 2013 Tokyo Midtown 42/135
February-April 2014 ALPARK (Hiroshima) 27/160
March-April 2014 LaLaport TOKYO-BAY 75/450
February-April 2014 LaLaport KOSHIEN 24/150
Expand profit by new development and large-scale renewal projects
LaLaport TOKYO-BAYEach FY opened and store floor space may change in the future. Some project names are tentative.
FY Opened Project Name Location Store Floor
Space
2014Okachimachi Yoshiike Head Store Building Taito-ku, Tokyo ≈ 9,400 m2
SHINJUKU NAKAMURAYA BUILDING Shinjuku-ku, Tokyo ≈ 4,200 m2
2015 LaLaport TACHIKAWA-TACHIHI Tachikawa, Tokyo ≈ 60,000 m2
2017 LaLaport SHANGHAI JINQIAO Pudong Jinqiao, Shanghai ≈ 74,000 m2
Major Newly Opened Projects (Managed)
MITSUI OUTLET PARK SAPPORO KITA-HIROSHIMA
2-1. Leasing Business
2-2. Property Sales Business
21
2-2. Property Sales Business2-2-1 Mitsui Fudosan’s Strengths
Property Sales Segment: Operating Income
Park City MusashikosugiThe Grand Wing Tower
LaLaport SHINMISATO ANNEXJingumae M-SQUARE
Property Sales to Individuals(Booked in FY ended March 2014)
Property Sales to Investors(Booked in FY ended March 2014)
Property sales to individuals: Development and sale of condominiums and detached housing to individuals
Property sales to investors: Development and sale of income generating properties to institutional investors
Park City MusashinoSakurazutsumi
30.820.4
11.3 9.7 10.215.3
22.7 24.5
26.9
28.1
1.1 6.4 5.4
7.7
4.3
21.5
0
10
20
30
40
50
60
70
3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 (E)
Property sales to individuals Property sales to investors(Billions of yen)
22
2-2-2 Major Projects (Property Sales to Individuals)
Park Tower Shinonome (2013) Fine Court Hibarigaoka (2012)
Park City Hamadayama (2008~)
Park City Kashiwanoha (2007~)
Park Homes Meguro The Residence(2010)
Park City MusashikosugiThe Grand Wing Tower(2013)
Park Homes Setagaya Akatsutsumi(2011)
Park Mansion Mita Hyugazaka (2010)
Park Luxe Kagurazaka(2012)
※(FY to be reported)
2-2. Property Sales Business
5,249 5,206
4,651
5,455
4,512 4,956
6,557
5,000
453 826 872
638 380 223 170
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015(E)
Unit booked Year-end inventories(Units)
270.3
305.0 300.9 316.3
257.2 282.6
345.1
306.0
11.4
6.7
3.8
3.1 4.0
5.4
6.6
8.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015(E)
Revenue (Left) Operating Margin (Right)
(Billions of yen) (%)
23
2-2-3 Mitsui Fudosan’s Strengths (Property Sales to Individuals)
Operating margin has recovered and inventories decreased
Condominium - Units Booked and Year-End Inventories
FY ended FY ended
2-2. Property Sales Business
Property sales to individuals –Sales and Operating Margin
7%
51%42%
FY to be Reported Project Name Location
Total No. of Units
Sold
2014Park Court Chiyoda Fujimi The Tower Chiyoda-ku, Tokyo ≈ 430SKYZ TOWER & GARDEN Koto-ku, Tokyo ≈ 1,110
2015
Sakurajosui Gardens Setagaya-ku, Tokyo ≈ 510Park City Osaki The Tower Shinagawa-ku,
Tokyo ≈ 570Tomihisa Cross Shinjuku-ku, Tokyo ≈ 1,000CAPITAL GATE PLACE Chuo-ku, Tokyo ≈ 500GLOBAL FRONT TOWER Minato-ku, Tokyo ≈ 880
2016
BAYZ TOWER & GARDEN Koto-ku, Tokyo ≈ 550KACHIDOKI THE TOWER Chuo-ku, Tokyo ≈ 1,300Kashiwanoha Campus Area 148 Kashiwa, Chiba ≈ 670Park Homes Toyosu The Residence Koto-ku, Tokyo ≈ 690
2017
Park City Musashikosugi The GardenTowers East Kawasaki, Kanagawa ≈ 600Minato 2-chome Redevelopment Project Chuo-ku, Tokyo ≈ 300Park Tower Harumi Chuo-ku, Tokyo ≈ 1,100
After2018
Kosugicho 2-chome Project (block B) Kawasaki, Kanagawa ≈ 600Hamamatsucho 1-chome Redevelopment project Minato-ku, Tokyo ≈ 330The Shibuya Ward Office RebuildingProject Shibuya-ku, Tokyo ≈ 500Project for the area around KasugaKorakuen Station Bunkyo-ku, Tokyo ≈ 400
24
An abundant land bank focusing mainly on redevelopment
Land acquired approximately 21,000 units( incl. redevelopment project in the planning phase)
Land Bank (Condominiums) (As of March 31, 2014)
Major Large-Scale Projects
2-2-4 Pipeline (Property Sales to Individuals)
High-grade condominiums
Large-scale developments
Middle-grade condominiums
Sales by Brand & Region(FY ended March 2014)
Sales by Region
Sales by Brand
81%
13%6%
Metropolitan Tokyo
Kansai & Chubu
Other regions
FY to be reported and units may change in the future. Some project names are tentative.
Based on Mitsui Fudosan Residential results
2-2. Property Sales Business
25
Multiple exit strategies and a model for cooperation with investors
2-2-5 Model for Cooperation with Investors
Institutional investors, corporations, etc.
Frontier Real Estate Investment Corporation
Nippon Accommodations Fund, Inc.
Nippon Building Fund, Inc.
J-REITs managed by the Mitsui Fudosan Group
Private funds structured and managed by the Mitsui Fudosan Group
Mitsui Fudosan Investment Advisors, Inc. (Structures and manages private funds)
Management contracts after sales
Sales to a diverse array of
investors
Inventory of Property for Sales to Investors
AUM: ¥1,074.3 bn (73 properties)
AUM: ¥287.7 bn (112 properties)
AUM: ¥270.1 bn (30 properties)
AUM: ¥1,236.0 bn
Total: ≈ ¥557.0bn (As of March 31, 2014)
(As of March 31, 2014)
Mitsui Fudosan Private REIT, Inc. AUM: ¥167.5 bn (31 properties)
40%
4%2%
27%
27%
Planned & under development
Rental housing
properties in operation
Retail facilities in operation
Office buildings in operation
Rogistics facilities in operation
2-2. Property Sales Business
26
2-2-6 Model for Cooperation with Investors (Logistics facilities)
Asset class expansion → Development of advanced logistics facilitiesMajor Projects Convenient location in close proximity to
major transportation arteries including outer beltways and inner city expresswaysFY
CompletedProject Name
(*Jointly owned property) Location Total Floor Space
Acquired in 2013
Mitsui Fudosan Logistics Park Yokohama Daikoku*
Yokohama,Kanagawa ≈ 131,800 ㎡
2013GLP・MFLP Ichikawa Shiohama * Ichikawa, Chiba ≈ 122,000 ㎡
Mitsui Fudosan Logistics Park Yashio Yashio, Saitama ≈ 41,600 ㎡
2014
Mitsui Fudosan Logistics Park Kuki Kuki, Saitama ≈ 74,500 ㎡
Mitsui Fudosan Logistics Park Sakai Sakai, Osaka ≈ 133,000 ㎡
Mitsui Fudosan Logistics Park Funabashi Nishiura
Funabashi, Chiba ≈ 31,000 ㎡
Mitsui Fudosan Logistics Park Atsugi Aiko-gun, Kanagawa ≈ 43,000 ㎡
2015 Mitsui Fudosan Logistics Park Hino Hino, Tokyo ≈ 213,400 ㎡
2016 Mitsui Fudosan Logistics Park Funabashi
Funabashi, Chiba ≈ 198,200 ㎡
GLP・MFLP Ichikawa Shiohama MFLP Yashio
FY completed and total floor space may change in the future. Some project names are tentative.
2-2. Property Sales Business
2-3. Management Business
28
Property ManagementManagement and other consignment business relating to office building, retail facility,
housing, and Car Park Leasing operations
Brokerage, Asset management, etc.Brokerage: Brokerage service for individuals (Mitsui Rehouse), etc.Asset management: Asset management services through three REITs and private funds
Management Business Operating Income
2-3. Management Business2-3-1 Mitsui Fudosan’s Strengths
Office buildings
Housing
Retail facilities
Property management is highly stable
Car park leasing
* Figures for the years ended March 2008 through 2009 are for reference.
21.9 20.2 21.2 21.9 23.7 26.4 27.8
50.0
25.4 18.5
8.4 10.2 10.5 15.1
22.1
0
10
20
30
40
50
60
3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 (E)
Property managementBrokerage, Asset management, etc.
(Billions of yen)
29
プライベートファンド等
2-3-2 Mitsui Fudosan’s Strengths (Property Management)
Ranking :Revenue of Car Park LeasingCar Park Leasing : Track Records
Stable earnings growth on the back of an increase in consigned properties
Property Management (Leasing condominiums):Track Records
Ranking :Units of Property Mgmt (Sales condominiums) Property Management (Sales condominiums):Track Records
Ranking :Condominium units of Property Mgmt consigned by J-REIT
Source: May 25, 2014 Mansion Kanri Shimbun(As of March 31, 2014)
Source: Survey by MitusifudosanHousing Lease As of March 31, 2014
Source: November 5,2014 Nikkei Marketing Journal
Notes: Property in Tokyo 23 wards, consigned by residential type J-REIT
No. Units
No. 1 Mitsui Fudosan Housing Lease Co., Ltd. 9,302
No. 2 Itochu Urban Community Co., Ltd. 8,523
No. 3 Nomura Living Support Co., Ltd. 4,654
No. 4 Tokyu Community Corporation 3,733
No. 5 Daiwa Living Co., Ltd. 3,307
76 97
117 118 121 124 133 143 155
0
50
100
150
3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014
(Thousands of units)
160 172 184 196 210 217 222 229 238
120
140
160
180
200
220
240
3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014
(Thousands of units)
30 34 38 41 44 46 47 50 52
0
10
20
30
40
50
3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014
(Thousands of units)
No. Units
No. 1 Daikyo Group 516,658
No. 2 Tokyu Community Group 478,506
No. 3 Nihon Housing Group 397,024
No. 4 Daiwa House Group 309,330
No. 5 Haseko Community Group 303,260
No. 6 Mitsui Fudosan Residential Service Group 238,027
2-3. Management Business
No. Revenue(Billions of yen)
No. 1 Park24 122.1
No. 2 Repark of Mitsui 52.2
No. 3 Meitetsu Kyosho 12.6
No. 4 Nihon Parking 12.6
No. 5 Nippon Parking Development 9.6
37%
17%6%8%
32%Private funds, etc.
Originators
30
The brokerage business achieved its highest transaction volume ever2-3-3 Mitsui Fudosan’s Strengths (Brokerage, Asset Management, Etc.)
Brokerage market (FY ended March 2014) Number of Stores by Area (As of March 31, 2014)
Assets under Management: Track Record Assets under Management (FY ended March 2014)
Stable earnings growth due mainly to an increase in assets under management
66%
Kansai15%
9%
Other10%
Metropolitan Tokyo
Nagoya
Source:Real Estate Economic Institute (As of May, 2014)
1.80 2.15 2.35
2.70 2.80 2.70 2.80 2.92 3.19 3.32
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
3/2005 3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014
(Trillions of yen)
2-3. Management Business
Fee/Revenue(Billions of yen)
Transactions(Unit)
Transaction Volume(Billions of yen)
Number ofstores
1 Mitsui Fudosan Realty Co., Ltd. 74.6 42,550 1,401 273
2 Sumitomo Real Estate Sales Co., Ltd. 52.6 35,455 987 251
3 Tokyu Livable, Inc. 40.0 19,465 911 138
4 Nomura Real Estate Holdings, Inc. 24.5 7,437 672 60
5 Sumitomo Mitsui Trust Realty Co., Ltd. 14.6 7,043 397 71
2-4. Global Business
7.5%
92.5%
32
2-4.Global Business
Income from Overseas Breakdown of Overseas Assets by Country
Europe and the United States: Build a high-quality portfolio and actively engage in development-type projects
Asia: Secure growth through retail facility, housing, and other development
Overseas
Domestic
Total assets: ¥4,548.8 billion as of March 31, 2014Income from overseas=Operating income of subsidiaries outside Japan + Equity in net income/loss of affiliates outside Japan
1251 Avenue of the Americas (New York)
Homer Building (Washington D.C.) 5 Hanover Square (London) Halekulani Hotel (Hawaii) St. Regis Hotel & Residences (Singapore)
US51%
23%
Asia26%
Europe11.0 10.6 11.6 12.515.0
0.0
5.0
10.0
15.0
3/2010 3/2011 3/2012 3/2013 3/2014
(Billions of yen)
●
●
●
●
London
Hawaii
●Tokyo
Beijing
Shanghai●
● Washington D.C.New YorkSan Francisco
●
●
TianjinDalian
●Ningbo
●
33
●Bangkok
Foshan ●
◆Washington D.C.
◆London
◆ Singapore
Partners
●
Promote business with blue-chip local partner companies
Abundant newly land banks
55 Hudson Yards(New York)
LaLaport SHANGHAI JINQIAO Mitsui Outlet Park Kuala LumpurInternational Airport (KLIA)
Taiwan Linkou Outlet Project (Taipei)
IDEO Q CHULA SAMYAN(Thai)
The Mews (Malaysia)
Mark Lane Project(London)
1200 17th Street (Washington D.C.)
1 Angel Court Project(London)
270 Brannan Project(San Francisco)
160 Madison Project(New York)
Europe and the United
States
Asia
●
Jakarta
●Kuala LumpurSingapore
●Taipei
2-4.Global Business
3. Summary of Results for the Nine Months Ended Dec. 31, 2014 (FY2014/3Q)
35
3-1 Consolidated Income Summary (Overall)3. Summary of Results for the Nine Months Ended Dec. 31, 2014 (FY2014/3Q)
Revenue from operations 1,081.3 994.6 86.7 1,540.0 70.2%
Operating income 127.6 113.1 14.5 183.0 69.8%Non-operating income/expenses (15.4) (18.5) 3.1 (27.0) -
Equity in net income of affiliates 1.9 0.5 1.4 - -Interest income/expense (19.3) (21.7) 2.4 (31.0) -Other 1.8 2.6 (0.8) 4.0 -
Ordinary income 112.1 94.5 17.6 156.0 71.9%Extraordinary gains/losses 4.2 4.9 (0.7) (5.0) -
Extraordinary gains 5.6 13.1 (7.5) - -Extraordinary losses 1.3 8.1 (6.8) - -
Income taxes 43.1 37.4 5.7 56.0 -Minority interests 2.6 0.2 2.4 5.0 -
Net income 70.6 61.8 8.7 90.0 78.5%
◆Extraordinary GainsGain on Sales of Shares of Affiliated Companies 5.6
5.6◆Extraordinary Losses
Loss on Disposal of Fixed Assets 1.31.3
Actual/Forecast
(Billions of yen)
FY2014/3Q FY2013/3Q Change Full-Year Forecast(as of May 2014)
36
3-2 Consolidated Segment Revenue & Operating Income
Consolidated Segment Revenue & Operating Income Appendices
Revenues from operations 1081.3 994.6 86.7Leasing 342.9 334.5 8.4 458.0
Property sales 295.9 207.7 88.2 442.0
Management 230.5 226.6 3.8 321.0
Mitsui Home 155.0 147.8 7.1 239.0
Other 56.9 77.8 (20.9) 80.0
Operating income 127.6 113.1 14.5 183.0Leasing 80.3 83.7 (3.4) 102.0
Property sales 31.4 10.3 21.1 46.0
Management 34.1 34.8 (0.7) 50.0
Mitsui Home (3.8) (4.3) 0.5 3.8
Other 4.4 3.7 0.6 4.0
Eliminations or corporate (18.9) (15.2) (3.6) (22.8)
1540.0
FY2014/3Q FY2013/3Q ChangeFull-YearForecast
(as of May 2014)
(Billions of yen) 【Vacancy Rate at End of Term】
14/12 14/9 14/6 14/3 13/12 13/9
Office Buildings andRetail Facilities *1 4.2% 4.6% 4.3% 3.5% 3.5% 3.4%
Tokyo Metropolitan AreaOffice Buildings *2 5.5% 5.9% 5.8% 3.3% 4.1% 4.5%
*1 Consolidated*2 Non-Consolidated
【Property Sales to Individuials and Investors】FY2014/3Q FY2013/3Q Change
Revenue 190.5 172.4 18.1
Operating Income 13.9 6.4 7.5
Unit 3,470 3,686 (216)
Condominiums 2,894 3,144 (250)
Detached Housing 576 542 34
Revenue 105.4 35.2 70.1
Operating Income 17.4 3.8 13.6
【Management】FY2014/3Q FY2013/3Q Change
Revenue 172.3 164.2 8.1
Operating Income 20.8 20.7 0.1
Revenue 58.1 62.4 (4.2)
Operating Income 13.2 14.1 (0.8)
(Billions of yen)
(Billions of yen)
Property Salesto Individuals
Property Salesto Investors
Brokerage・AssetManagement
PropertyManagement
(4,010)31,19527,185Mitsui Fudosan Realty/Brokerage Units
8,843153,343162,186Car Park Leasing/Total Managed Units
3. Summary of Results for the Nine Months Ended Dec. 31, 2014 (FY2014/3Q)
3-3 Consolidated Balance Sheet Summary
37
Current assets 1,410.9 1,316.1 94.7 Current liabilities 558.7 846.3 (287.5)Cash & time deposits 94.4 127.8 (33.4) Accounts payable - trade 65.7 130.6 (64.9)
Marketable Securities 64.3 0.2 64.1 Short-term debt* 194.0 284.0 (90.0)
1,008.8 961.4 47.3 Short-term bonds payable* 10.5 50.1 (39.5)
Equity investments in properties for sale 9.9 12.0 (2.0) Other 288.4 381.4 (92.9)
Other 233.2 214.5 18.7
Fixed assets 3,416.7 3,232.6 184.0 Long-term liabilities 2,484.8 2,377.0 107.7
Tangible & intangible fixed assets 2,608.4 2,526.1 82.3 Corporate bonds* 369.6 296.5 73.0
Investment securities 603.9 495.7 108.1 Long-term debt* 1,397.5 1,409.3 (11.7)
Lease deposits 128.9 135.7 (6.7) Deposits from tenants 351.7 345.6 6.1
Other 75.4 75.0 0.3 Other 365.9 325.5 40.3
Interest-bearing debt* 1,971.7 2,040.0 (68.3)
Total net assets 1,784.0 1,325.4 458.6Common Stock 339.7 174.2 165.4
Capital Surplus 413.8 248.2 165.5
Retained Earnings 504.9 454.7 50.1
Other 525.5 448.0 77.4
Total assets 4,827.6 4,548.8 278.8 Total liabilities & net assets 4,827.6 4,548.8 278.8
D/E ratio (Times) 1.13 1.60 (0.47)Equity ratio (%) 36.0% 28.0% 8.0 pt
(Billions of yen)
Change
Real property for sale(including advances paid for purchases)
Change
Mar.31,2014Dec.31,2014
Dec.31,2014
Dec.31,2014 Mar.31,2014 Change
*Interest-bearing debt: short-term debt + short-term bonds payable + corporate bonds +long-term debt
Mar.31,2014
3. Summary of Results for the Nine Months Ended Dec. 31, 2014 (FY2014/3Q)
4. Forecast for the Year to March 2015 (FY 2014)
(Billions of yen)
Revenue from Operations 306.0 345.1 (39.1)
Condominiums 257.0 295.4 (38.4)
Detached Housing 49.0 49.6 (0.6)
Operating Income 24.5 22.7 1.7
Operating Margin(%) 8.0% 6.6% 1.4pt
Condominiums 5,000 6,557 (1,557)
Detached Housing 900 916 (16)
Revenue from Operations 136.0 64.2 71.7
Operating Income 21.5 4.3 17.1
Change3/2014 Actual
(FY2013)
3/2015Forecasts(FY2014)
Unit
Property Sales toIndividuals
Property Sales toInvestors
Revenue fromOperations/OperatingIncome
39
Consolidated Income Summary 4. Forecast for the Year to March 2015 (FY2014)
Consolidated Income Statements(Forecasts ) Appendices
【Property Sales】
【 Financial Position】
(Billions of yen)
Tangible and Intangible Assets
New Investments 220.0 149.5 70.4
Depreciation 60.0 56.0 3.9
New Investments 430.0 374.9 55.0
Cost Recovery 400.0 324.8 75.1
Interest-Beaning Debt 2,230.0 2,040.0 189.9
Real Property for Sales(including Advances Pail or Purchases)
Change3/2014 Actual
(FY2013)
3/2015Forecasts(FY2014)
Revenues from operations 1,540.0 1,515.2 24.7
Leasing 458.0 449.6 8.3
Property sales 442.0 409.4 32.5
Management 321.0 314.2 6.7
Mitsui Home 239.0 237.0 1.9
Other 80.0 104.7 (24.7)
Operating income 183.0 172.5 10.4Leasing 102.0 109.2 (7.2)
Property sales 46.0 27.0 18.9
Management 50.0 49.9 0.0
Mitsui Home 3.8 4.1 (0.3)
Other 4.0 3.0 0.9
Eliminations or corporate (22.8) (20.9) (1.8)
Non-operating income/expenses (27.0) (27.9) 0.9Interest income/expense (31.0) (30.2) (0.7)
Other 4.0 2.3 1.6
Ordinary income 156.0 144.5 11.4
Extraordinary gains/losses (5.0) (17.8) 12.8
Net income before income taxes 151.0 126.7 24.2
Income taxes 56.0 47.0 8.9
Minority interests 5.0 2.8 2.1
Net income 90.0 76.8 13.1
(Billions of yen)
3/2015Forecasts(FY2014)
3/2014Actual
(FY2013)Change
5. Summary of Results for the Year Ended March. 31, 2014 (FY2013)
41
5-1 Consolidated Income Summary (Overall)5. Summary of Results for the Year Ended March 31, 2014 (FY2013)
Revenue from operations 1,515.2 1,445.6 69.6 1,530.0 99.0%
Operating income 172.5 148.1 24.3 160.0 107.9%Non-operating income/expenses (27.9) (25.1) (2.8) (28.0) -
Equity in net income of affiliates 1.4 2.8 (1.4) - -Interest income/expense (30.2) (29.0) (1.2) (31.0) -Other 0.8 1.0 (0.2) - -
Ordinary income 144.5 123.0 21.5 132.0 109.5%Extraordinary gains/losses (17.8) (12.1) (5.7) (20.0) -
Extraordinary gains 13.1 8.6 4.5 - -Extraordinary losses 31.0 20.7 10.2 - -
Income taxes 47.0 50.3 (3.3) 46.0 -Minority interests 2.8 1.1 1.7 1.0 -
Net income 76.8 59.4 17.3 65.0 118.2%
◆Extraordinary GainsGain on Sales of Fixed Assets 13.1
13.1◆Extraordinary Losses
Impairment Loss 11.5Loss on Sales of Fixed Asset 9.1Loss on Disposal of Fixed Assets 8.2Loss on Liquidation of Subsidiaries 2.1
31.0
Actual/Forecast
(Billions of yen)
3/2014(FY2013)
3/2013(FY2012) Change Full-Year Forecast
(as of May 2013)
42
5-2 Consolidated Segment Revenue & Operating Income
Revenues from operations 1,515.2 1,445.6 69.6Leasing 449.6 441.7 7.9 456.0
Property sales 409.4 393.4 16.0 436.0
Management 314.2 297.9 16.2 309.0
Mitsui Home 237.0 209.0 28.0 224.0
Other 104.7 103.5 1.2 105.0
Operating income 172.5 148.1 24.3 160.0Leasing 109.2 104.3 4.8 105.0
Property sales 27.0 23.0 4.0 31.0
Management 49.9 41.5 8.3 42.0
Mitsui Home 4.1 0.5 3.6 2.0
Other 3.0 (0.0) 3.1 1.0
Eliminations or corporate (20.9) (21.2) 0.3 (21.0)
1,530.0
3/2014(FY2013)
3/2013(FY2012) Change Full-Year Forecast
(as of May 2013)
(Billions of yen)
Consolidated Segment Revenue & Operating Income Appendices【Vacancy Rate at End of Term】
14/3 13/12 13/9 13/6 13/3 12/3
Office Buildings andRetail Facilities *1 3.5% 3.5% 3.4% 3.2% 3.3% 2.9%
Tokyo Metropolitan AreaOffice Buildings *2 3.3% 4.1% 4.5% 3.8% 3.8% 4.4%
*1 Consolidated*2 Non-Consolidated
【Property Sales to Individuials and Investors】FY2013 FY2012 Change
Revenue 345.1 282.6 62.5
Operating Income 22.7 15.3 7.4
Unit 7,473 5,751 1,722
Condominiums 6,557 4,956 1,601
Detached Housing 916 795 121
Revenue 64.2 110.7 (46.4)
Operating Income 4.3 7.7 (3.4)
【Management】FY2013 FY2012 Change
Revenue 225.4 218.9 6.5
Operating Income 27.8 26.4 1.3
Revenue 88.7 79.0 9.7
Operating Income 22.1 15.1 6.9Brokerage・AssetManagement
PropertyManagement
3,64938,76942,418Mitsui Fudosan EstateSales/Brokerage
11,193143,450154,643Car Park Leasing/Total Managed Units
(Billions of yen)
(Billions of yen)
Property Salesto Individuals
Property Salesto Investors
5. Summary of Results for the Year Ended March 31, 2014 (FY2013)
5-3 Consolidated Balance Sheet Summary
43
Current assets 1,316.1 1,202.8 113.3 Current liabilities 846.3 652.1 194.1Cash & time deposits 127.8 102.2 25.6 Accounts payable - trade 130.6 100.7 29.9
Short-term debt* 284.0 199.2 84.7
Commercial paper* - 27.0 (27.0)
Equity investments in properties forsale 12.0 10.9 1.0 Short-term bonds payable* 50.1 40.1 9.9
Other 214.7 174.4 40.3 Other 381.4 284.9 96.4
Fixed assets 3,232.6 3,187.2 45.4 Long-term liabilities 2,377.0 2,504.8 (127.7)
Tangible & intangible fixed assets 2,526.1 2,503.9 22.1 Corporate bonds* 296.5 340.0 (43.5)
Investment securities 495.7 465.8 29.8 Long-term debt* 1,409.3 1,513.6 (104.3)
Lease deposits 135.7 148.7 (12.9) Deposits from tenants 345.6 344.9 0.6
Other 75.0 68.6 6.3 Other 325.5 306.1 19.3
Interest-bearing debt* 2,040.0 2,120.2 (80.1)
Total net assets 1,325.4 1,233.0 92.3
Total assets 4,548.8 4,390.0 158.7 Total liabilities & net assets 4,548.8 4,390.0 158.7
Mar.31,2013
D/E ratio (Times) 1.60 1.80 (0.19)Equity ratio (%) 28.0% 26.9% 1.1 pt
Change
Mar.31,2013Mar.31,2014
Mar.31,2014
Mar.31,2014 Mar.31,2013 Change
*Interest-bearing debt: short-term debt + commercial paper + short-term bonds payable +corporate bonds + long-term debt
(Billions of yen)
46.2
Change
Real property for sale(including advances paid forpurchases)
961.4 915.2
5. Summary of Results for the Year Ended March 31, 2014 (FY2013)
44
Total Assets: ¥4.54 trillion5-3 Consolidated Balance Sheets Summary
Real Property for Sale 961.4(including Advances Paid for Purchases)
Interest-Bearing Debt/Long-Short Borrowing Ratio
(Contract base excl. non-recourse debt)
Interest-Bearing Debt/Direct Finance Ratio (Contract base
excl. non-recourse debt)Rental properties 2,256.7
362.538%
251.726%
295.731%
51.45%
Mitsui Fudosan Residential
Mitsui Fudosan
Other
SPC Total
Market value 3,472.6 3,168.0 304.6Book value 2,256.7 2,247.5 9.2Unrealized gain 1,215.9 920.4 295.4
Change
◆Rental properties (Billions of yen)
At March 31, 2014(FY2013 Year-end)
At March 31, 2013(FY2012 Year-end)
1%
99%over 1 year
1 year and shorter
16.6%
84.4%
SBs
Bank borrowings, CP
(Billions of yen)
(Billions of yen)
1,316.1 3,223.4Cash and time deposit 127.8 Interest-bearing debt 2,040.0Real property for sale 961.4
(Non-recourse debt) (236.2)
Other 226.8
3,232.6Tangible and intangiblefixed assets 2,526.1
Deposits from tenants 345.6(Rental properties) (2,256.7)
Other 837.7
1,325.4(Shareholders' equity) (1,274.3)
Investment securities 135.7
Other 570.7
149.5
56.0* New investments include the increase in tangible and intangible fixed assets at subsidiaries in which the Company invested during the period.
Net assets
New investments(Tangible andintangible f ixed assets) *Depreciation
(Billions of yen)
Current assets Liabilities
Fixed assets
1,477.465%
261.712%
497.122%
20.41%
Other
Retail facilities in operation
Planned & under
development
Office buildings in operation
5. Summary of Results for the Year Ended March 31, 2014 (FY2013)
Appendices (Market Trends)
0.36
0.720.91
1.25
2.16
1.21
0.77
1.54
1.19
0.650.86 0.85
1.17
1.75
0.58
0.71 0.81 0.81 0.64 0.68
0.170.3 0.28 0.6
0.28
0
0.5
1
1.5
2
2.5
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Uncompleted (other 20 wards)Uncompleted (central 3 wards)Completed
(Million ㎡)
0.881.11 1.10
1.240.96
46
Appendix 1Leasing Business Market Trends (Office Buildings)
Office Vacancy Rate
Trends of Supply Volume of Large-Scale Office Buildings within Tokyo’s 23 Wards
Past supply volume(annual average) 1.04 million m2/year (total floor space)
Forecast supply volume after FY2014(annual average)1.06 million m2/year(total floor space)
(Calendar years)
Source: Miki Shoji
Source: Mori Building (As of October, 2014)
(Calendar years)(Forecast)
8.57%(03/6,8)
2.49%(07/11)
0.9%(06/6) 0.9%
(07/6)
5.8%(03/9)
9.43%(12/6)
3.8%(13/3)
8.56%(13/3)
5.3%(12/6)
6.7%(14/03)
5.47%(14/12)
3.3%(14/03)
6.45%(14/6)
5.65%(14/9)
012345678910
0
5,000
10,000
15,000
20,000
25,000
02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/03 12/3 13/3 14/3
(Yen/Tsubo)(%)
Average rent(Left) Vacancy rate(Right)
47
Appendix 1Leasing Business Market Trends (Office Buildings)
Net Absorption Trend ( 5 wards of Central Tokyo )
Office Building Market Trend (Average Rent and Vacancy Rate)
Source: Miki Shoji
Source: Sanko Estate
1312:16,207 Yen/Tsubo1406:16,607 Yen/Tsubo1412:16,953 Yen/Tsubo
0808: 22,901 Yen/Tsubo
(Year/Month)
(Calendar years)
-1.0
-0.5
0.0
0.5
1.0
1.5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(Million ㎡)
Reason for Company Relocation Desired Areas for Planned Lease of Office Space
Source: Mori Building ”Report of the Result of the 2014 Survey of Office Needs in Tokyo’s 23 Wards”(As of December, 2014)
※3 wards means Chiyoda-ku, Chuo-ku, Minato-ku 48
Appendix 1Leasing Business Market Trends (Office Buildings)
3 wards of central Tokyo*
Source: Nikkei Real Estate Market Information “March.2014”
36%
27%
17%
13%
10%
9%
6%
5%
3%
2%
4%
26%
30%
7%
14%
22%
8%
5%
5%
3%
2%
7%
0% 10% 20% 30% 40%
Increase inpersonnel/Business
expansion
Tonintegrate distributedoffices
Current Building to bedemolished
Rent reduction
Improvement in Businessefficiency and convenience
For Business ContinuityPlan/Earthquakeresistance/Safety…
Improvement of officeenviroment,such as facirities
Construction/Purchase/Rebuilding space of Company
Building
M&A/New companyEstablishment
Sale of Company Building
Others
2013(179companies)2012(194companies)
0% 5% 10% 15% 20%
MarunouchiOtemachi
YurakuchoUchisaiwaicho
HibiyaKojimachi/Bancho
Hirakawacho/KioichoIidabashi
AkihabaraYaesu
NihonbashiKyobashi
GinzaHarumi
ShiodomeShinbashi
ToranomonKamiyacho
AkasakaRoppongi
AoyamaHamamatsucho
TamachiDaiba/Aomi
Shinagawa(around station)
2014(Total337)2013(Total422)
-1.7%0.3% 0.3% 0.0%
-1.5%
-6.8%
-2.0%-1.3%
0.5%
-0.5% 0.1%-2.8%
-0.2% -0.7% -0.5%
-4.3%
-10.1%
-3.1%-2.0%
0.3%
1.6%0.3%
-3.5%-2.6% -2.7% -1.4%
-0.7%
-4.3%-2.6%
-0.8%
-1.9% -0.7% -0.6%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General shoppin centers Department stores Chain stores
(Calendar years)
49
Appendix 2Leasing Business Market Trends (Retail Facilities)
Year-on-Year Change in Sales by Category
Mitsui Fudosan: Year-on-Year Change in Sales by Type of Retail Facility
Source: Japan Department Stores Association, Japan Council of Shopping Centers, Japan Chain Stores Association
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
2009/1Q(09/4-6)
2009/2Q(09/7-9)
2009/3Q(09/10-12)
2009/4Q(10/1-3)
2010/1Q(10/4-6)
2010/2Q(10/7-9)
2010/3Q(10/10-12)
2010/4Q(11/1-3)
2011/1Q(11/4-6)
2011/2Q(11/7-9)
2011/3Q(11/10-12)
2011/4Q(12/1-3)
2012/1Q(12/4-6)
2012/2Q(12/7-9)
2012/3Q(12/10-12)
2012/4Q(13/1-3)
2013/1Q(13/4-6)
2013/2Q(13/7-9)
2013/3Q(13/10-12)
2013/4Q(14/1-3)
2014/1Q(14/4-6)
2014/2Q(14/7-9)
2014/3Q(14/10-12)
LaLaport (existing facilities) & Outlet park (existing facilities)
40
50
60
70
80
90
100
0
2
4
6
8
10
12
05/1 05/7 06/1 06/7 07/1 07/7 08/1 08/7 09/1 09/7 10/1 10/7 11/1 11/7 12/1 12/7 13/1 13/7 14/1 14/7
Inventories(Left)Initial month contract rate(Right)
(Thousand of units)
50
Appendix 3Property Sales Business Market Trends (Property Sales to Individuals)
Metropolitan Tokyo Condominium Market: Initial Month Contract & Unsold Inventory
Metropolitan Tokyo Condominium Market: New Units Launched and Average Price per Unit
Source: Real Estate Economic Institute
Source: Real Estate Economic Institute
(%)
82.8%(10/3)
79.7%(11/3)
79.2%(12/3)
82.1%(13/3)
79.8%(14/3) 69.9%
(14/12)
84 74
61
44 36
45 45 46 56
45 41.0
(0.1%)
42.0(2.2%)
46.4(10.6%)
45.4(-0.8%)
47.7(2.8%) 45.3
(-5.0%)
47.1(4.0%) 45.7
(-2.9%)
49.2(8.6%)
50.6(2.7%)
30.0
40.0
50.0
0102030405060708090
100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
New units launched (Left) Average unit price metro Tokyo (Right)(Thousand of units) (Millions of yen)
(Calendar years)
(Figures in bracket indicate OY change)
52.13.5
82.6
228.9
140.4101.7 73.3
229.4
80.3
203.3 201.3 174.0
288.9
118.9
205.9
799.9
545.5
250.5
637.3
434.7
334.4 308.0
499.1
0
100
200
300
400
500
600
700
800
900
20091Q
20092Q
20093Q
20094Q
20101Q
20102Q
20103Q
20104Q
20111Q
20112Q
20113Q
20114Q
20121Q
20122Q
20123Q
20124Q
20131Q
20132Q
20133Q
20134Q
20141Q
20142Q
20143Q
(Billions of yen)
51
Appendix 4Property Sales Business Market Trends (Property Sales to Investors)
Yield Benchmark, Offices in Prime Locations
Acquisition of Assets by J-REITs & Tokyo Stock Exchange J-REIT Index
Source: Survey by Japan Real Estate Institute
Acquisition of assets by J-REIT (Left) TSE REIT Index (excl. dividends) (Right)
Source: The Association for Real Estate Securitization
Offices in prime locations: Office building around five-years old located in Marunouchi, Otemachi, and Nihonbashi area with total and standard floor areas of 20,000 tsubo or more and 500 tsubo or more, respectively.
Yield benchmark (on an NCF basis): Yield by use and region based on an assessment of capitalization rates by the Japan Real Estate Institute.
3.5% 3.5% 3.3% 3.3% 3.3% 3.3% 3.3% 3.5% 3.5% 3.5% 3.5% 3.4% 3.4% 3.4% 3.4% 3.4% 3.3% 3.2% 3.0%2.0%
3.0%
4.0%
5.0%
0512 0606 0612 0706 0712 0806 0812 0906 0912 1006 1012 1106 1112 1206 1212 1306 1312 1406 1412
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Jan.~Dec.2013≈ 2.23T
Jan.~Dec.2012≈ 790bn
Jan.~Dec. 2011≈ 710bn
Jan.~Dec.2014≈ 1.58T
52
Shareholder Composition as of March 31
Appendix 5Shareholder Composition
14.714.013.5
12.311.9
10.711.513.4
10.910.710.99.99.3
7.56.46.36.36.26.16.05.8
4.7
48.349.450.1
47.648.851.1
52.246.7
49.051.652.9
47.845.7
39.136.7
33.837.0
34.535.636.5
35.934.2
19.119.319.8
25.325.6
26.325.1
27.830.2
28.929.1
34.437.6
45.147.8
50.347.3
49.448.347.5
47.950.3
17.917.316.614.813.711.911.312.2
9.98.97.17.97.58.38.89.69.49.9
10.010.010.410.7
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1993199419951996199719981999200020012002200320042005200620072008200920102011201220132014
Individuals Financial Institutions Foreign Other companies, etc.
53
FY2013 actual(Billions of yen)
Management
Leasing
Property Sales
Management
Other
Holding
Subleasing 2001 and prior
2002 and after
Total Total
Other
Mitsui Home
Trading
Holding
Eliminations
109.2
27.0
49.9
3.0
172.5
4.1
(20.9)
103.1
27.0
56.5
(14.2)
172.5
Operating Income by SegmentAppendix 6
Financial accounting segments Innovation 2017 segments
FY2013actual
54
Disclaimer
This presentation contains forward-looking statements including details regarding the Company’s business results forecasts, development plans, and targets. All forward-looking statements are based on judgments derived from the information available to the Company at the time this presentation was issued, and are subject to a variety of risks and uncertainties.
As a result, actual results may differ materially from the Company’s forecasts due to a number of factors including changes in economic conditions, market trends, and shifts in the operating environment.
Although we exercised all due care in the preparation of this presentation, we assume no obligation to update, revise, or correct any of the statements and do not attest to or guarantee their usefulness, suitability for a specific purpose, functionality, or reliability.
Moreover, this presentation is not intended to solicit investment of any kind.Investment decisions should be based solely on the judgments of investors.