Investor Presentation February 2020 - PowerPoint PPT Presentation

Investor Presentation February 2020 https://www.mitsuifudosan.co.jp/english/

Contents １． About Mitsui Fudosan 1-1 About Mitsui Fudosan P4 1-2 Highlights P5 ２． Management Strategy 2-1 Mitsui Fudosan Group Long-term Vision 【 VISION2025 】 P8 2-2 Capital Policy P11 2-3 Growth Drivers P13 2-4 Portfolio Strategies P15 2-5 Promoting ESG Management (Recent Initiatives) P19 2-6 Corporate Governance P20 ３． Core Businesses ： Overview & Strengths 3-1 Leasing Business<Office Buildings, Retail Facilities, Others> P22 3-2 Property Sales Business P31 <Property Sales to Individuals, Property Sales to Investors> 3-3 Management Business P35 <Property Management, Brokerage, Asset Management, etc.) 3-4 (Appendix)Logistics Facility Business P37 3-5 (Appendix)Hotel and Resort Business P38 3-6 (Appendix)Global Business P40 ４． Financial Statements and investment data, etc. 4-1 Summary of Results for the Nine Months Ended June 31, 2019 P44 4-2 Forecasts for the Year to March 2020 (FY 2019) P47 4-3 Summary of Results for the Year Ended March 31, 2019 P49 4-4 Operating Income by Segment P52 4-5 Investment and Financial Data P53 4-6 Shareholder Composition P55 ５． Appendices(Market Trends) 5-1 Market Trends/Leasing Business/Office Buildings P57 5-2 Market Trends/Leasing Business/Retail Facilities P60 5-3 Market Trends/Property Sales Business/To Individuals P61 5-4 Market Trends/Property Sales Business/To Investors P62 5-5 International Visitors to Japan P63 Disclaimer P64 2 MITSUI FUDOSAN CO.,LTD

1 ． ABOUT MITSUI FUDOSAN

1-1 ． About Mitsui Fudosan Group About Mitsui Fudosan Aspirations for the Mitsui Fudosan Group ②ワークテーブル：円グラフ Revenue Structure Revenue from Operations (For the Year ended March 31, 2019) 1,861.1 billions of yen Other 5% Mitsui Home 14% Leasing 32% ①ワークテーブル：連結営業収益 連結営業収益 ③ワークテーブル：賃貸事業 Management 商業施設 20% Property Sales 29% ④ワークテーブル：分業事業 分業事業 Three Core Businesses and Breakdown of each Profit ⑤ワークテーブル：マネジメント事業 As of March 2019 マネジメント事業 Leasing Business Property Sales Business Management Business 4% ⑥ワークテーブル：賃貸事業、分業事業、マネジメント事業 27% 46% 40% 54% 56% 73% Property Sagel to Individuals Offce Buildings Retail Facilities Property Management (Domestic) Others Brokerage, Asset management, etc. Property Sales to Investors and Individuals (Overseas),etc. ①ピボット参照：連結営業収益 4 MITSUI FUDOSAN CO.,LTD

1-2 ． Highlights About Mitsui Fudosan Performance Highlights Long-Term Vision ①ワークテーブル：業務ハイライト（グラフ） VISION 2025 （ Billions of yen ） 330.0 Leasing Property Sales Management Others(*1) 300.0 Profit Attributable to owners of parent(*2) 52.0 270.0 53.4 48.7 240.0 53.8 192.0 210.0 124.0 168.6 52.4 98.0 155.8 83.0 180.0 49.3 65.2 49.9 131.8 150.0 41.5 44.5 117.7 45.4 100.1 27.0 120.0 23.0 76.8 90.0 59.4 144.0 141.9 135.7 138.3 124.1 60.0 109.2 107.8 104.3 30.0 0.0 (24.1) (31.2) (40.0) (20.8) (13.6) (18.6) (22.2) (16.6) (30.0) ②ワークテーブル：業務ハイライト（表） 3/'13 3/'14 3/'15 3/'16 3/'17 3/'18 3/'19 3/'20 （ Announced on Jan.30, 2020 ） 営業利益 Operating income 148.1 186.0 202.4 232.6 245.9 262.1 280.0 172.5 親会社株主に帰属する当期純利益 (Billions of Yen) 減価償却費 Profit Attributable to 配当金/株 59.4 76.8 100.1 117.7 131.8 155.8 168.6 192.0 parent (Billions of Yen) 自己株式取得 総還元性向 Depreciation 59.0 61.2 67.4 71.3 70.1 79.0 85.0 56.0 (Billions of Yen) 22 22 25 30 34 40 44 44 Cash dividends per share （ E ） Total amount of treasury - - - 15.0 16.0 - - - acquired (Billions of Yen) Total shareholder return ratio 35.1 32.5 25.1 24.1 25.2 25.5 35.0 - (%) (*3) ①業務ハイライト（グラフ：過去7期） ROA （％） 3.7 4.1 4.1 4.1 4.6 4.6 4.4 - ROE （％） 5.3 6.3 6.4 6.2 6.7 7.4 7.4 - 営業利益-賃貸 営業利益-分譲 *1 Others include Mitsui Home, other segments and nonconsolidated general & administrative expenses. 営業利益-マネジメント *2 Prior to FY2015 : Net Income 営業利益-その他 *3 Total shareholder return ratio= (Total dividends + Total amount of treasury stock acquired)/Profit Attributable to owners of parent 営業利益-消去他 ・ ROA: (Operating income + Non-operating income) /Average total assets over period ・ ROE: Profit Attributable to owners of parent /Average shareholders‘ equity over period 5 MITSUI FUDOSAN CO.,LTD 親会社株主に帰属する当期純利益

1-2 ． Highlights About Mitsui Fudosan BS Highlights Trend of D/E ratio, etc. Interest-bearing debt(Left) Shareholders' equity(Left) (Billions of yen) (time) Debt/Equity ratio(Right) 3,500.0 2.00 1.80 3,300.0 BS as of March 31, 2019 (Billions of yen) 1.80 1.60 2,906.6 3,000.0 Real property for sale 1.60 2,604.6 (including advances 1,630.5 2,342.5 2,500.0 2,287.4 1.40 1,976.1 2,226.2 2,204.8 paid for purchases) 2,120.2 2,040.0 1,922.3 2,906.6 1,984.6 Interest-bearing 1.20 1,871.9 2,000.0 1.24 1.18 1.16 1.00 1.15 1.06 1,500.0 1,274.3 Tangible and Intangible 0.80 1,181.1 3,500.4 fixed assets 0.60 1,000.0 Other 1,475.3 (Rental properties) 3,024.0 0.40 500.0 0.20 0.0 0.00 2,420.8 Net Assets 3/'13 3/'14 3/'15 3/'16 3/'17 3/'18 3/'19 3/'20 (E) 2,342.5 (Shareholders' equity) Other 1,671.6 Market Value of Rental Properties 6,802.7 6,802.7 Assets Debt and Equity (Billions of yen) Book Value Unrealized Gain(Market Value-Book Value) 5,773.6 6,000.0 5,436.1 Rental Properties 4,828.4 (Billions of yen) 5,000.0 4,560.5 4,054.3 2,749.6 At March 31. At March 31. 2,475.4 4,000.0 Change 3,472.6 2,183.3 2019 2018 3,168.0 1,912.1 1,564.4 3,000.0 5,773.6 5,436.1 337.5 Market Value 1,215.9 920.4 2,000.0 Book Value 3,024.0 2,960.7 63.3 2,960.7 3,024.0 2,648.3 2,645.0 2,489.9 2,247.5 2,256.7 1,000.0 Unrealized 2,749.6 2,475.4 274.2 Gain 0.0 3/'13 3/'14 3/'15 3/'16 3/'17 3/'18 3/'19 6 MITSUI FUDOSAN CO.,LTD

2 ． Management Strategy

2-1 ． Mitsui Fudosan Group Long-term Vision 【 VISION2025 】 Management Strategy ⋆Announced in May 2018 VISION2025 ▶ Successfully establish a ▶ Harness technology to innovate ▶ Evolve into a global company sustainable society through the the real estate business creation of neighborhoods Basic Strategies Achieve Society 5.0 Establish a sustainable society Pursue common social value Contribute to the SDGs Drive sustainable profit growth Main Initiatives Drive evolution Dramatically grow Innovate business models in the creation of neighborhoods the overseas business by harnessing real estate tech Infrastructure to support initiatives Human resource strategies Organization, systems and governance Asset and financial strategy 8 MITSUI FUDOSAN CO.,LTD

2-1 ． Mitsui Fudosan Group Long-Term Vision 【 VISION2025 】 Management Strategy *Announced in May 2018 OUTLOOK ①ワークテーブル：将来見通し 連結営業利益 うち、海外事業利益 FY2019 FY2018 Around 2025 Actual Forecasts released on Jan.30, 2020 Around ¥ 350 billion ¥262.1 ¥280 billion Consolidated Operating Income - Around 30% 19.8% Of which: Overseas Income ①ピボット参照：将来見通し ROA - Around 5% 4.4% 営業利益 *Overseas income ＝ Overseas OP+ Pro forma operating income of overseas affiliates (Calculated by multiplying the operating income or the amount equivalent to operating income of each overseas equity-method affiliated company by the Company’s equity interest) Note: The amount equivalent to operating income is the amount of profit calculated on a simplified basis after taking into consideration the tax burden. * ROA ： (Operating income + Non-operating income) /Average total assets over period 9 MITSUI FUDOSAN CO.,LTD