investor presentation · • remodeling business: become the leading brand for high-value-adding...

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)


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


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


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


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


2-2. 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)


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


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


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


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.


2-3． 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

ﾌﾟﾗｲﾍﾞｰﾄﾌｧﾝﾄﾞ等

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


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


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


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)


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


【Management】FY2014/3Q FY2013/3Q Change

Revenue 172.3 164.2 8.1


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


3-3 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


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 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


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)


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)


3/2014Actual

(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


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


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


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)



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


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


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


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.

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