Investor Presentation November 2014 - - PowerPoint PPT Presentation

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Investor Presentation

November 2014

www.mitsuifudosan.co.jp/english

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1

Contents

1．About Mitsui Fudosan 1-1 Highlights 3 1-2 Performance Highlights 4 1-3 Financial Highlights 5 1-4 Long-Term Business Plan Innovation 2017 6 1-5 Summary of The Offering 9 2． Core Businesses: Overview & Strengths 2-1 Leasing 2-1-1 Analysis of Revenue 12 2-1-2 Premier Assets (Office Buildings) 13 2-1-3 Premier Assets (Retail Facilities) 14 2-1-4 Mitsui Fudosan’s Strengths (Office Buildings) 15 2-1-5 Pipeline (Office Buildings) 16 2-1-6 Create Neighborhoods in Nihonbashi and Yaesu 17 2-1-7 Mitsui Fudosan’s Strengths (Retail Facilities) 18 2-1-8 Pipeline (Retail Facilities) 19 2-2 Property Sales 2-2-1 Mitsui Fudosan’s Strengths 21 2-2-2 Major Projects (Property Sales to Individuals) 22 2-2-3 Mitsui Fudosan’s Strengths (Property Sales to Individuals) 23 2-2-4 Pipeline (Property Sales to Individuals) 24 2-2-5 Model for Cooperation with Investors 25 2-2-6 Model for Cooperation with Investors (Logistics facilities) 26 2-3 Management 2-3-1 Mitsui Fudosan’s Strengths 28 2-3-2 Mitsui Fudosan’s Strengths (Property Management) 29 2-3-3 Mitsui Fudosan’s Strengths (Brokerage, Asset Management, etc.) 30 2-4 Global Business 31 3． Summary of Results for the Six Months Ended Sept. 30, 2014 (FY 2014) 3-1 Consolidated Income Summary (Overall) 35 3-2 Consolidated Segment Revenue & Operating Income 36 3-3 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) 41 5-2 Consolidated Segment Revenue & Operating Income 42 5-3 Consolidated Balance Sheet Summary 43 Appendices (Market Trends) Appendix 1 Leasing Business Market Trends (Office Buildings) 46 Appendix 2 Leasing Business Market Trends (Retail Facilities) 49 Appendix 3 Property Sales Business Market Trends (Property Sales to Individuals) 50 Appendix 4 Property Sales Business Market Trends (Property Sales to Investors) 51 Appendix 5 Shareholder Composition 52 Appendix 6 Operating Income by Segment 53 Disclaimer 54

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• 1. About Mitsui Fudosan

SLIDE 4

Property Sales Management Leasing

（Office Buildings /Retail Facilities/Others）

3

Revenue from Operations 1,515 billions of yen

Office Buildings 63% Retail Facilities 35% Others 2% Property Sales to Individuals 84% Property Sales to Investors 16% Property Management 72% Brokerage Asset Management,etc 28%

6,557 units

AUM

3.32

trillion yen

Office Buildings 2,738 thousand ㎡ Retail Facilities 1,714 thousand ㎡

Mitsui Fudosan Highlights (For the year ended March 31, 2014)

• 1. About Mitsui Fudosan

1-1 Highlights

（Property Sales to Individuals / Property Sales to Investors) (Property Management / Brokerage,Asset Management,etc)

Leased Floor Space

(Incl. Managed Properties)

Units booked

(Condominiums)

Sales Ratio Sales Ratio Sales Ratio

SLIDE 5

94.1 95.5 88.9 95.6 104.3 109.2 102.0 38.8 29.7 32.1 34.3 41.5 49.9 50.0 49.2 12.4 16.1 15.7 23.0 27.0 46.0 171.5 120.5 120.0 126.0 148.1 172.5 183.0 163.0 240.0 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
• 208

Other*

• 136
• 150
• 110

4 1-2 Performance Highlights

• 1. About Mitsui Fudosan

Depreciation (Billions of yen)

48.8 50.2 52.9 53.2 59.0 56.0 60.0 － －

Cash dividends per 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 sales Management

*1 Other include Mitsui Home, other segments and nonconsolidated general & administrative expenses. *2 Before considering capital increase The 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

SLIDE 6

1,740.0 1,743.4 2,120.2 2,040.0 2,230.0 2,100.0 1,019.9 1,078.1 1,181.1 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 Highlights

• 1. About Mitsui Fudosan

(Billions of yen) (Left) Interest-bearing debt Shareholders’ 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 3,168.0 304.6 Book value 2,256.7 2,247.5 9.2 Unrealized 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 4,548.8

Assets Debt and Equity

(Billions of yen)

Real property for sale (including advances paid for purchases)

961.4

Interest-bearing debt

2,040.0

Other

1,183.3

Other

1,061.2 2,526.1

Tangible 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)

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6 1-4 Long-Term Business Plan Innovation 2017

FY2012 Actual FY2013 Actual FY2014 Estimates as 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 Actual FY2014 Estimates as 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

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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 Estimates as of May, 2014 3 Years Total Domestic Capital expenditures 66.0 123.0 163 352 Overseas Capital 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 property for 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 2017

• 1. About Mitsui Fudosan

Two-thirds of total investment will be in property sales to individuals, one-third will be in property sales to investors

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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
• ffices for lease
• Asia: Be more active in developing housing, retail facilities & office

buildings

5 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 Remodeling Custom –built homes Previously

• wned condos

& detached homes

Mitsui Fudosan Residential

Mitsui Rehouse Mitsui Home Mitsui Reform Mitsui Fudosan Housing Lease

1-4 Long-Term Business Plan Innovation 2017

• 1. About Mitsui Fudosan

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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 Group Stable 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 Environment Improved Business Conditions

Abenomics Tokyo Olympics & Paralympics National Strategic Special Zone

Our Strategies

Creativity that Results in High Value-Added Reinforcement of Financial Position

Future Opportunities

• 1. About Mitsui Fudosan

1-5 Summary of The Offering

Improvement of Infrastructure Strengthen Tokyo’s International Competitiveness

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• 2. Core Businesses: Overview & Strengths

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2-1. Leasing Business

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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 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 buildings Retail facilities (Billions of yen)

Revenue: ¥449.6 bn

(FY ended March 2014)

Domestic

• ffice

buildings ¥254.8 bn

57%

Overseas office buildings ¥29.7 bn

7%

Retail facilities 157.8 bn

35%

Other ¥7.2 bn

1%

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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-Chome Mitsui Building (2004)

Sumitomo Mitsui Banking Corporation Head Office Building (2010)

Akasaka Biz Tower (2008) Gate City Ohsaki (1999)

2-1. Leasing Business

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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

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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

• r more

2 years

• r less

2.1-5 years

78% 15% 7%

Other metropolitan Tokyo Regions 5 Wards of central Tokyo

2-1. Leasing Business

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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 District Development 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

2013

Muromachi Furukawa Mitsui Building* Chuo-ku, Tokyo ≈ 19,600 ㎡ Muromachi Chibagin Mitsui Building* Chuo-ku, Tokyo ≈ 9,300 ㎡

2014

8-10 Moorgate City, London ≈ 12,500 ㎡ 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 ㎡ Mark Lane Project City, London ≈ 16,000 ㎡

FY Completed

Project Name (*Jointly owned property) Location

Total Floor Space (Site Area)

2015

Kita-Shinagawa 5-Chome Block 1 Redevelopment Project* Shinagawa-ku, Tokyo ― 270 Brannan Project* San Francisco ≈ 16,800 ㎡

2017

Hibiya Project Chiyoda-ku,Tokyo ≈ 189,800 ㎡ Nihonbashi Honcho 2-Chome Specified Block Project* Chuo-ku, Tokyo ≈ 46,800 ㎡

2018

Nihonbashi 2-Chome Redevelopment Project (Block C)* Chuo-ku, Tokyo ≈ 143,400 ㎡

2019

Nihonbashi Muromachi 3-Chome Urban Redevelopment Project* Chuo-ku, Tokyo ≈ 169,000 ㎡ OH-1 Project (Otemachi 1-Chome Block 2)* Chiyoda-ku, Tokyo ≈ 352,000 ㎡ TGMM Shibaura Project* (Overall completion:FY2019) Minato-ku, Tokyo ―

After 2020

Yaesu 2-Chome Central Block Project* Chuo-ku, Tokyo ≈ 355,000 ㎡ 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

1 Angel Court Project* City, London ≈ 27,500 ㎡ 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

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17

日本橋二丁目再開発計画

Project Map

Leasable area classified by use at the date of completion

Office 67.5%

Residential

3.3% Retail 11.5% Hotel 16.7%

Others 1.0%

◆Tokyo Midtown

2-1-6 Create Neighborhoods in Nihonbashi and Yaesu

Hibiya Project Nihonbashi 2-Chome Urban Redevelopment 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-Furukawa Mitsui Building （Completed in FY2013) Muromachi-Chibagin Mitsui Building （Completed in FY2013) Nihonbashi 1-Chome Central Block （4～12 Square） Project Yurakucho Sta. Tokyo Sta. Nihonbashi Sta. Nihonbashi

2-1. Leasing Business

Office 58.8%

Residential

15.6% Retail 7.8% Hotel 11.9%

Service Apartment 2.2% Others 3.7%

◆Nihonbashi Area

・Nihonbashi Mitsui Tower ・Muromachi Higashi Mitsui Building ・Muromachi Furukawa Mitsui Building ・Muromachi Chibagin Mitsui Building

SLIDE 19

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 structure  Relationships 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. 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

SLIDE 20

19 2-1-8 Pipeline (Retail Facilities)

Major Newly Opened Projects

FY Opened Project 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 Shinsaibashi Square Osaka, Osaka ≈ 1,700 m2 LaLaport IZUMI Izumi, Osaka ≈ 55,000 m2 MITSUI OUTLET PARK KUALA LUMPUR INTERNATIONAL AIRPORT* Kuala Lumpur, Malaysia ≈ 46,300 m2

2015

LaLaport FUJIMI Fujimi, Saitama ≈ 80,000 m2 Kashimada Project Kawasaki, Kanagawa ≈ 10,800 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 Linkou Enterprise Zone Project * (Taiwan, Outlet Project) Linkou District, Taiwan ≈ 45,000 m2

TBD

Retail Facility Development Project in Hiratsuka Hiratsuka, Kanagawa TBD Retail Facility Development Project in Nagoya Nagoya, Aichi TBD Retail Facility Development Project in Togocho, Aichi Aichigun,Aichi TBD

Large-scale Renewal Projects

Execution Period Facility Name

• No. of Stores

Renewed / Total No.

• f 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-BAY

Each FY opened and store floor space may change in the future. Some project names are tentative. FY Opened Project Name Location Store Floor Space

2014

Okachimachi 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

SLIDE 21

2-2. Property Sales Business

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21

2-2. Property Sales Business

2-2-1 Mitsui Fudosan’s Strengths

Property Sales Segment: Operating Income

Park City Musashikosugi The Grand Wing Tower LaLaport SHINMISATO ANNEX Jingumae 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 Musashino Sakuratsutsumi

30.8 20.4 11.3 9.7 10.2 15.3 22.7 24.5 26.9 28.1 1.1 6.4 5.4 7.7 4.3 21.5

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)

SLIDE 23

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 Musashikosugi The 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

SLIDE 24

5,249 5,206 4,651 5,455 4,512 4,956 6,557 5,000 453 826 872 638 380 223 170

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

SLIDE 25

7% 51% 42%

FY to be Reported Project Name Location Total No.

• f Units

Sold 2014

Park Court Chiyoda Fujimi The Tower Chiyoda-ku, Tokyo

≈ 430

SKYZ TOWER ＆ GARDEN Koto-ku, Tokyo

≈ 1,110 2015

Sakurajosui Gardens Setagaya-ku, Tokyo

≈ 510

Park City Osaki The Tower Shinagawa-ku, Tokyo

≈ 570

Tomihisa Cross Shinjuku-ku, Tokyo

≈ 1,000

CAPITAL GATE PLACE Chuo-ku, Tokyo

≈ 500

GLOBAL FRONT TOWER Minato-ku, Tokyo

≈ 880 2016

KACHIDOKI THE TOWER Chuo-ku, Tokyo

≈ 1,300

Hamamatsucho 1-chome Redevelopment Minato-ku, Tokyo

≈ 330

Kosugicho 2-chome Project (NOC company residence) Kawasaki, Kanagawa ≈ 1,080 Kashiwanoha Campus Area 148 Kashiwa, Chiba

≈ 670 2017

Project for the area around Kasuga Korakuen Station Bunkyo-ku, Tokyo

≈ 400

Minato 2-chome Redevelopment Project Chuo-ku, Tokyo

≈ 300

Harumi Chuo-ku 2-chome Project Chuo-ku, Tokyo

≈ 1,100

Toyosu Koto-ku 5-chome Project Koto-ku, Tokyo

≈ 670 2018

The Shibuya Ward Office Rebuilding Project Shibuya-ku, Tokyo

≈ 410

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

SLIDE 26

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

• peration

Retail facilities in

• peration

Office buildings in

• peration

Rogistics facilities in

• peration

2-2. Property Sales Business

SLIDE 27

26 2-2-6 Model for Cooperation with Investors (Logistics facilities)

 Asset class expansion → Development of advanced logistics facilities

Major Projects Convenient location in close proximity to major transportation arteries including

• uter beltways and inner city expressways

FY Completed Project Name

(*Jointly owned property)

Location Total Floor Space Acquired in 2013

Mitsui Fudosan Logistics Park Yokohama Daikoku* Yokohama, Kanagawa ≈ 131,800 ㎡

2013

GLP・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 ㎡

2015

Mitsui Fudosan Logistics Park Funabashi Nishiura Funabashi, Chiba ≈ 31,000 ㎡ Mitsui Fudosan Logistics Park Hino Hino, Tokyo TBD*1

TBD

Mitsui Fudosan Logistics Park Atsugi Aiko-gun, Kanagawa ≈ 43,000 ㎡ Mitsui Fudosan Logistics Park Funabashi Funabashi, Chiba TBD*2

*1 Site area: Approx. 97,500㎡ *2 Site area: Approx. 60,000㎡

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

SLIDE 28

2-3． Management Business

SLIDE 29

28

 Property Management

Management 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 Business

2-3-1 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

10 20 30 40 50 60 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 (E)

Property management Brokerage, Asset management, etc. (Billions of yen)

SLIDE 30

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 Leasing

Car 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 Mitusifudosan Housing Lease As of March 31, 2014 Source: November 6,2013 Nikkei Marketing Journal Notes: Property in Tokyo 23 wards, consigned by residential type J-REIT

No.

Revenue

(Billions of yen)

• No. 1

Park24 111.5

• No. 2

Repark of Mitsui 47.3

• No. 3

Meitetsu Kyosho 11.9

• No. 4

Nihon Parking 11.5

• No. 5

Nippon Parking Development

8.9

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 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 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

SLIDE 31

37% 17% 6% 8% 32%

Private funds, etc. Originators

30

 The brokerage business achieved its highest transaction volume ever

2-3-3 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%

Kansai

15% 9%

Other

10%

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 of stores

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

SLIDE 32

2-4. Global Business

SLIDE 33

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, 2014

Income 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)

US 51% 23% Asia 26% Europe

11.0 10.6 11.6 12.5 15.0 0.0 5.0 10.0 15.0 3/2010 3/2011 3/2012 3/2013 3/2014

(Billions of yen)

SLIDE 34

• London

Hawaii

• Tokyo

Beijing Shanghai

• Washington D.C.

New York San Francisco

• Tianjin

Dalian

• Ningbo
• 33
• Bangkok

Foshan ●

◆Washington D.C. ◆London ◆ Singapore

Partners

• Promote business with blue-chip local partner companies

 Abundant newly land banks

8-10 Moorgate （London） Mark Lane Project （London） 1200 17th Street （Washington D.C.） 1 Angel Court Project (London） 270 Brannan Project （San Francisco） LaLaport SHANGHAI JINQIAO Mitsui Outlet Park Kuala Lumpur International Airport (KLIA) Linkou Enterprise Zone Project (Taipei) IDEO Ｑ CHULA SAMYAN（Thai） The Mews (Malaysia)

160 Madison Project （New York)

Europe and the United States

Asia

• Jakarta
• Kuala Lumpur

Singapore

• Taipei

2-4．Global Business

SLIDE 35

3．Summary of Results for the Six Months Ended Sept. 30, 2014 (FY2014/2Q)

SLIDE 36

35 3-1 Consolidated Income Summary (Overall)

3．Summary of Results for the Six Months Ended Sept. 30, 2014 (FY2014/2Q)

Revenue from operations

748.0 636.1 111.8 1,540.0 48.6%

Operating income

92.1 69.2 22.9 183.0 50.4%

Non-operating income/expenses

(14.3) (12.3) (1.9) (27.0) －

Equity in net income of affiliates

0.6 0.8 (0.1) － －

Interest income/expense

(12.9) (14.5) 1.5 (31.0) －

Other

(2.0) 1.3 (3.4) 4.0 －

Ordinary income 77.7 56.8 20.9 156.0 49.9%

Extraordinary gains/losses

5.1 10.8 (5.6) (5.0) －

Extraordinary gains

5.1 13.1 (8.0) － －

Extraordinary losses

• 2.3

(2.3) － －

Income taxes

33.0 27.6 5.4 56.0 －

Minority interests

2.8 0.1 2.7 5.0 －

Net income 47.0 39.8 7.1 90.0 52.2%

◆Extraordinary Gains

Gain on Sales of Shares of Affiliated Companies

5.1 5.1

Actual/ Forecast

(Billions of yen)

FY2014/2Q FY2013/2Q Change

Full-Year Forecast

(as of May 2014)

SLIDE 37

36 3-2 Consolidated Segment Revenue & Operating Income

Consolidated Segment Revenue & Operating Income Appendices

3．Summary of Results for the Six Months Ended Sept. 30, 2014 (FY2014/2Q)

Revenues from operations

748.0 636.1 111.8

Leasing 225.9 221.9 4.0 458.0 Property sales 229.4 118.7 110.7 442.0 Management 152.8 150.6 2.1 321.0 Mitsui Home 104.1 94.3 9.8 239.0 Other 35.6 50.5 (14.9) 80.0

Operating income

92.1 69.2 22.9 183.0

Leasing 53.1 55.4 (2.3) 102.0 Property sales 29.5 2.3 27.1 46.0 Management 22.1 24.1 (2.0) 50.0 Mitsui Home (2.6) (4.4) 1.7 3.8 Other 2.2 2.0 0.2 4.0 Eliminations or corporate (12.2) (10.3) (1.8) (22.8)

1540.0

FY2014/2Q FY2013/2Q Change

Full-Year Forecast

(as of May 2014) (Billions of yen)

【Vacancy Rate at End of Term】

14/9 14/6 14/3 13/12 13/9 13/6

Office Buildings and Retail Facilities *1 4.6% 4.3% 3.5% 3.5% 3.4% 3.2% Tokyo Metropolitan Area Office Buildings *2 5.9% 5.8% 3.3% 4.1% 4.5% 3.8%

*1 Consolidated *2 Non-Consolidated

【Property Sales to Individuials and Investors】

FY2014/2Q FY2013/2Q

Change

Revenue 129.3 86.5 42.7 Operating Income 11.7 (1.2) 12.9 Unit 2,347 1,907 440 Condominiums 1,969 1,555 414 Detached Housing 378 352 26 Revenue 100.1 32.1 67.9 Operating Income 17.7 3.5 14.1 【Management】

FY2014/2Q FY2013/2Q

Change

Revenue 114.5 107.6 6.8 Operating Income 13.9 13.6 0.3 Revenue 38.3 42.9 (4.6) Operating Income 8.1 10.5 (2.4)

(Billions of yen) (Billions of yen)

Property Sales to Individuals Property Sales to Investors Brokerage・ Asset Management Property Management (2,985) 21,011 18,026 Mitsui Fudosan Realty/ Brokerage Units 10,011 149,666 159,677 Car Park Leasing/ Total Managed Units

SLIDE 38

3-3 Consolidated Balance Sheet Summary 37

3．Summary of Results for the Six Months Ended Sept. 30, 2014 (FY2014/2Q)

Current assets

1,415.7 1,316.1 99.5

Current liabilities

521.6 846.3 (324.6)

Cash & time deposits

98.6 127.8 (29.2)

Accounts payable - trade

72.5 130.6 (58.1)

Marketable Securities

120.3 0.2 120.1

Short-term debt*

165.3 284.0 (118.6) 975.1 961.4 13.7

Short-term bonds payable*

0.0 50.1 (50.0)

Equity investments in properties for sale

11.4 12.0 (0.5)

Other

283.6 381.4 (97.8)

Other

210.1 214.5 (4.4) Fixed assets

3,311.0 3,232.6 78.4

Long-term liabilities

2,482.1 2,377.0 105.0

Tangible & intangible fixed assets

2,570.8 2,526.1 44.6

Corporate bonds*

380.0 296.5 83.4

Investment securities

533.5 495.7 37.7

Long-term debt*

1,412.9 1,409.3 3.6

Lease deposits

130.1 135.7 (5.5)

Deposits from tenants

348.6 345.6 3.0

Other

76.5 75.0 1.5

Other

340.4 325.5 14.8

Interest-bearing debt*

1,958.5 2,040.0 (81.5) Total net assets

1,723.0 1,325.4 397.6

Common Stock

339.7 174.2 165.4

Capital Surplus

413.7 248.2 165.4

Retained Earnings

493.9 454.7 39.2

Other

475.5 448.0 27.4 Total assets

4,726.8 4,548.8 177.9

Total liabilities & net assets

4,726.8 4,548.8 177.9

D/E ratio (Times)

1.17 1.60 (0.43)

Equity ratio (%)

35.4% 28.0% 7.4 pt

(Billions of yen)

Change

Real property for sale (including advances paid for purchases)

Change Mar.31,2014 Sep.30,2014 Sep.30,2014 Sep.30,2014 Mar.31,2014 Change

*Interest-bearing debt: short-term debt + short-term bonds payable + corporate bonds + long-term debt

Mar.31,2014

SLIDE 39

4．Forecast for the Year to March 2015 (FY 2014)

SLIDE 40

(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 Change

3/2014 Actual (FY2013) 3/2015 Forecasts (FY2014)

Unit Property Sales to Individuals Property Sales to Investors Revenue from Operations/ Operating Income

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)

Change

3/2014 Actual (FY2013) 3/2015 Forecasts (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 10.4 Leasing

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) 0.9 Interest 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)

3/2015 Forecasts (FY2014) 3/2014 Actual (FY2013) Change

SLIDE 41

5．Summary of Results for the Year Ended March. 31, 2014 (FY2013)

SLIDE 42

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 Gains Gain on Sales of Fixed Assets

13.1 13.1

◆Extraordinary Losses Impairment Loss

11.5

Loss on Sales of Fixed Asset

9.1

Loss on Disposal of Fixed Assets

8.2

Loss 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)

SLIDE 43

42 5-2 Consolidated Segment Revenue & Operating Income

Revenues from operations

1,515.2 1,445.6 69.6

Leasing 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 24.3 160.0

Leasing 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

【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 6.9 Brokerage・ Asset Management Property Management 3,649 38,769 42,418 Mitsui Fudosan Estate Sales/ Brokerage 11,193 143,450 154,643 Car Park Leasing/ Total Managed Units

(Billions of yen) (Billions of yen)

Property Sales to Individuals Property Sales to Investors 【Vacancy Rate at End of Term】 14/3 13/12 13/9 13/6 13/3 12/3 Office Buildings and Retail Facilities *1 3.5% 3.5% 3.4% 3.2% 3.3% 2.9% Tokyo Metropolitan Area Office Buildings *2 3.3% 4.1% 4.5% 3.8% 3.8% 4.4%

*1 Consolidated *2 Non-Consolidated

5．Summary of Results for the Year Ended March 31, 2014 (FY2013)

SLIDE 44

5-3 Consolidated Balance Sheet Summary 43

5．Summary of Results for the Year Ended March 31, 2014 (FY2013)

Current assets

1,316.1 1,202.8 113.3

Current liabilities

846.3 652.1 194.1

Cash & 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 for sale

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.31,2013 Mar.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 for purchases)

961.4 915.2

SLIDE 45

44

Total Assets: ¥4.54 trillion

5-3 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

362.5 38% 251.7 26% 295.7 31% 51.4 5%

Mitsui Fudosan Residential Mitsui Fudosan Other SPC Total Market value 3,472.6 3,168.0 304.6 Book value 2,256.7 2,247.5 9.2 Unrealized 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%

• ver 1 year

1 year and shorter

16.6% 84.4%

SBs Bank borrowings, CP

（Billions of yen） （Billions of yen）

1,316.1 3,223.4

Cash and time deposit

127.8

Interest-bearing debt

2,040.0

Real property for sale

961.4

(Non-recourse debt)

(236.2)

Other

226.8

3,232.6

Tangible and intangible fixed 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 and

intangible fixed assets) *

Depreciation

(Billions of yen)

Current assets Liabilities Fixed assets

1,477.4 65% 261.7 12% 497.1 22%

20.4 1%

Other

Retail facilities in operation Planned & under development

Office buildings in

• peration

5．Summary of Results for the Year Ended March 31, 2014 (FY2013)

SLIDE 46

Appendices (Market Trends)

SLIDE 47

0.36 0.72 0.91 1.25 2.16 1.21 0.77 1.54 1.19 0.65 0.86 0.85 1.17 1.75 0.58 0.71 0.81 0.81 0.64 0.68 0.17 0.3 0.28 0.6 0.28 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 ㎡)

0.88 1.11 1.10 1.24 0.96

0.00 2.00 4.00 6.00 8.00 10.00 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 Mitsui fudosan(Tokyo Metro;non-consolidated) Central Tokyo 5 Wards(Source:Miki Shoji)

(%)

46

Appendix 1

Leasing 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)

5.65%

(14/9)

3.3%

(14/03)

6.45%

(14/6)

SLIDE 48

1 2 3 4 5 6 7 8 9 10 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 1

Leasing 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/Tsubo 1406：16,607 Yen/Tsubo 1409：16,805 Yen/Tsubo 0808： 22,901 Yen/Tsubo

（Year/Month）

• 1.0
• 0.5

0.0 0.5 1.0 1.5 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (1-9) (Million ㎡)

(Calendar years)

SLIDE 49

Reason for Company Relocation Desired Areas for Planned Lease of Office Space

Source:Mori Building”report of the Result of the 2013 Survey of Office Needs in Tokyo’s 23 Wards” ※3 wards means Chiyoda-ku,Chuo-ku,Minato-ku

48

Appendix 1

Leasing 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 in personnel/Business expansion Tonintegrate distributed

• ffices

Current Building to be demolished Rent reduction Improvement in Business efficiency and convenience For Business Continuity Plan/Earthquake resistance/Safety… Improvement of office enviroment,such as facirities Construction/Purchase/Rebu ilding space of Company Building M&A/New company Establishment Sale of Company Building Others 2013(179companies) 2012(194companies) 0% 2% 4% 6% 8% 10%12%14%16%18% Marunouchi Otemachi Yurakucho Uchisaiwaicho Hibiya Kojimachi/Bancho Hirakawacho/Kioicho Iidabashi Akihabara Yaesu Nihonbashi Kyobashi Ginza Harumi Shiodome Shinbashi Toranomon Kamiyacho Akasaka Roppongi Aoyama Hamamatsucho Tamachi Daiba/Aomi Shinagawa(around station) 2013(Total422) 2012(Total472)

SLIDE 50

49

Appendix 2

Leasing 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

• 1.7%

0.3% 0.3% 0.0%

• 1.5%
• 6.8%
• 2.0%
• 1.3%

0.5%

• 0.5%
• 2.8%
• 0.2%
• 0.7%
• 0.5%
• 4.3%
• 10.1%
• 3.1%
• 2.0%

0.3% 1.6%

• 3.5%
• 2.6%
• 2.7%
• 1.4%
• 0.7%
• 4.3%
• 2.6%
• 0.8%
• 1.9%
• 0.7%
• 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 General shopping centers Department stores Chain stores

(Calendar years) 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)

LaLaport (existing facilities) & Outlet park (existing facilities)

SLIDE 51

40 50 60 70 80 90 100 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 3

Property 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

（%）

84 74 61 44 36 45 45 46 56 41.0 (0.0%) 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%) 30.0 40.0 50.0 10 20 30 40 50 60 70 80 90 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 New units launched (Left) Average unit price metro Tokyo (Right)

(Thousand of units) (Millions of yen) (Calendar years)

(Figures in bracket indicate OY change)

82.8%

（10/3）

79.7%

（11/3）

79.2%

（12/3）

82.1%

（13/3）

79.8%

（14/3）

71.6%

（14/9）

SLIDE 52

52.1 3.5 82.6 228.9 140.4 101.7 73.3 229.4 80.3 203.3 201.3 174.0 288.9 118.9 205.9 799.9 545.5 250.5 637.3 434.7 334.4 308.0 100 200 300 400 500 600 700 800

2009 1Q 2009 2Q 2009 3Q 2009 4Q 2010 1Q 2010 2Q 2010 3Q 2010 4Q 2011 1Q 2011 2Q 2011 3Q 2011 4Q 2012 1Q 2012 2Q 2012 3Q 2012 4Q 2013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q 2014 2Q (Billions of yen)

200 400 600 800 1,000 1,200 1,400 1,600 1,800

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% 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

51

Appendix 4

Property 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 Instituteh

Acquisition of assets by J-REIT (Left) TSE REIT Index (excl. dividends) (Right)

Source: The Association for Real Estate Securitization Jan.~Dec.2013 ≈ 2.23T Jan.~Dec.2012 ≈ 790bn Jan.~Dec. 2011 ≈ 710bn 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. Jan.~Sep.2014 ≈ 1.07T

SLIDE 53

52

Shareholder Composition as of March 31

Appendix 5

Shareholder Composition

14.7 14.0 13.5 12.3 11.9 10.7 11.5 13.4 10.9 10.7 10.9 9.9 9.3 7.5 6.4 6.3 6.3 6.2 6.1 6.0 5.8 4.7 48.3 49.4 50.1 47.6 48.8 51.1 52.2 46.7 49.0 51.6 52.9 47.8 45.7 39.1 36.7 33.8 37.0 34.5 35.6 36.5 35.9 34.2 19.1 19.3 19.8 25.3 25.6 26.3 25.1 27.8 30.2 28.9 29.1 34.4 37.6 45.1 47.8 50.3 47.3 49.4 48.3 47.5 47.9 50.3 17.9 17.3 16.6 14.8 13.7 11.9 11.3 12.2 9.9 8.9 7.1 7.9 7.5 8.3 8.8 9.6 9.4 9.9 10.0 10.0 10.4 10.7

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Individuals Financial Institutions Foreign Other companies, etc.

SLIDE 54

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 Segment

Appendix 6

Financial accounting segments Innovation 2017 segments FY2013actual

SLIDE 55

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.