Investor Presentation November 2019 - PowerPoint PPT Presentation

Investor Presentation November 2019 https://www.mitsuifudosan.co.jp/english/

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

１． ABOUT MITSUI FUDOSAN

1-1 ． About Mitsui Fudosan Group About Mitsui Fudosan Aspirations for the Mitsui Fudosan Group Revenue structure Revenue from Operations (For the Year ended March 31,2019) 1,861.1 billions of yen Other 5% Mitsui Home Leasing 14% 32% Management 20% Property Sales 29% Three Core Businesses and Breakdown of each Revenue As of March2019 Management Business Leasing Business Property Sales Business 4% 27% 54% 46% 40% 56% 73% Property sales to individuals(Domestic) Property Management Office Buildings Retail Facilities Property sales to Investors and Others Brokerage,Asset management,etc. Individuals(Overseas) 4 MITSUI FUDOSAN CO.,LTD

1-2 ． Highlights About Mitsui Fudosan Performance Highlights Long-Term Vision (Billions of yen) VISION 2025 330.0 Leasing Property sales Management Others(*1) 300.0 52.0 Profit Attributable to owners of parent(*2) 270.0 53.4 48.7 240.0 53.8 175.0 210.0 168.6 124.0 52.4 155.8 98.0 83.0 180.0 49.3 65.2 131.8 49.9 117.7 150.0 41.5 44.5 100.1 45.4 27.0 120.0 23.0 76.8 90.0 59.4 141.9 144.0 135.7 138.3 124.1 60.0 109.2 107.8 104.3 30.0 0.0 (20.8) (13.6) (16.6) (18.6) (22.2) (24.1) (31.2) (40.0) (30.0) 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 3/2019 3/2020 (Announced on Nov. 7, 2019) Operating income 148.1 172.5 186 202.4 232.6 245.9 262.1 280 (Billions of yen) Profit Attributable to Owners of 59.4 76.8 100.1 117.7 131.8 155.8 168.6 175 parent(Billions of yen) Depreciation 59 56 61.2 67.4 71.3 70.1 79 85 (Billions of yen) 22 22 25 30 34 40 44 44 Cash dividends per share (Yen) (E) Total amount of treasury stock － － － － － 15.0 16.0 － acquired(Billions of yen) Total shareholder return ratio 32.5 25.1 24.1 25.2 25.5 35.0 35.1 － （％）（※3） ROA(%) 3.7 4.1 4.1 4.1 4.6 4.6 4.4 － 5.3 6.3 6.4 6.2 6. 8 7.4 7.4 － ROE(%) *1 Other include Mitsui Home, other segments and nonconsolidated general & administrative expenses. *2 Prior to FY2015 ： Net Income *3 Total shareholder return ratio ＝ (Total dividends + Total amount of treasury stock acquired) /Profit Attributable to owners of parent ・ ROA: (Operating income + Non-operating income) /Average total assets over period ・ ROE: Profit Attributable to owners of parent /Average shareholders‘ equity over period 5 MITSUI FUDOSAN CO.,LTD

1-2 ． Highlights About Mitsui Fudosan BS Highlights Trend of D/E ratio, etc. BS as of March 31,2019 Interest-bearing debt(Left) Shareholders’ equity(Left) (Billions of Yen) Debt/Equity ratio (Right) (Billions of yen) (time) 1.80 3,300.0 Real property for 3,500.0 2.00 1.60 sale (including 1.80 2,906.6 1,630.5 3,000.0 advances paid for Interest-bearing 2,604.6 1.60 2,906.6 purchases) debt 2,342.5 2,287.4 2,500.0 1,976.1 2,226.2 1.40 2,204.8 2,120.2 2,040.0 1,922.3 1,984.6 1,871.9 1.20 Tangible and 2,000.0 1.24 1.00 Intangible fixed 1.18 1.16 1.15 1,500.0 1,274.3 1.06 assets 1,181.1 0.80 3,500.4 Other 1,475.3 (Rental properties) (3,024.0) 0.60 1,000.0 0.40 500.0 0.20 Net assets 2,420.8 0.0 0.00 3/’13 3/’14 3/’15 3/’16 3/’17 3/’18 3/’19 3/’20(E) (Shareholders' equity) (2,342.5) Other 1,671.8 Market value of Rental Properties Assets Debt and Equity 6,802.7 6,802.7 (Billions of yen) 5,773.6 6,000.0 Book Value Unrealized gain(Market Value-Book Value) 5,436.1 Rental Properties 4,828.4 (Billions of Yen) 5,000.0 4,560.5 At March 31. At March 31. 4,054.3 Change 2,749.6 2,475.4 2019 2018 4,000.0 3,472.6 2,183.3 3,168.0 1,912.1 Market Value 5,773.6 5,436.1 337.5 1,564.4 3,000.0 1,215.9 920.4 3,024.0 2,960.7 63.3 Book Value 2,000.0 2,749.6 2,475.4 274.2 Unrealized Gain 3,024.0 2,960.7 2,648.3 2,645.0 2,489.9 2,247.5 2,256.7 1,000.0 0.0 3/'13 3/'14 3/'15 3/'16 3/'17 3/'18 3/'19 6 MITSUI FUDOSAN CO.,LTD

2. Management Strategy

2-1 ． Mitsui Fudosan Group Long-term Vision 【 VISION2025 】 Management ※ Announced in May 2018 Strategy VISION 2025 Harness technology to Successfully establish a ▶ ▶ Evolve into a global ▶ sustainable society through innovate the real estate company the creation of neighborhoods business Basic Strategies Establish a sustainable society Achieve Society 5.0 Pursue common social value Drive sustainable profit growth Contribute to the SDGs グループ経営の進化 ▶ グループシナジーの強化 ▶ 海外も含めたグループ連携の推進 ▶ 外部連繋強化・オープンイノベーション実践 Main Initiatives Innovate business models Drive evolution Dramatically grow 海外事業の飛躍的な成長 by harnessing real estate tech in the creation of neighborhoods the overseas business Infrastructure to support initiatives Human resource strategies Organization, systems and governance Asset and financial strategy 8 MITSUI FUDOSAN CO.,LTD

2-1 ． Mitsui Fudosan Group Long-term Vision 【 VISION2025 】 Management Strategy ※ Announced in May 2018 OUTLOOK FY2018 FY2019 Around 2025 actual Forecasts released on Nov. 7, 2019 ¥ 262.1 billion ¥ 280 billion Around ¥ 350 billion Consolidated operating income Around 30 ％ 19.8 ％ － Of which: Overseas income ROA Around 5 ％ 4.4 ％ － *Overseas income ＝ Overseas OP+ Pro forma operating income of overseas affiliates (Calculated by multiplying the operating income or the amount equivalent to operating income of each overseas equity-method affiliated company by the Company’s equity interest) Note: The amount equivalent to operating income is the amount of profit calculated on a simplified basis after taking into consideration the tax burden. * ROA ： (Operating income + Non-operating income) /Average total assets over period 9 MITSUI FUDOSAN CO.,LTD

2-1 ． Mitsui Fudosan Group Long-term Vision 【 VISION2025 】 Management Strategy ※ Announced in May 2018 Guidelines of return to shareholders ▶ Mitsui Fudosan reinvests earnings to increase shareholder value over the medium to long term and returns profits to shareholders based on comprehensive consideration of such factors as the business environment and its performance and finances. ▶ In terms of returns to shareholders, in addition to paying stable dividends , We will conduct a flexible share repurchasing * to improve capital efficiency. ▶ Mitsui Fudosan has identified a total shareholder return ratio of around 35% of profit attributable to owners of parent. Trends in Total Dividend Amount, Share *In principle, the acquired treasury stock will be cancelled. Repurchase Amount and Total Return Ratio Million Yen 35.0% 35.1% 70,000 35% Cancellation of treasury stock 60,000 Scheduled cancellation of treasury stock acquired in ⚫ FY2018/FY2019 16,000 50,000 15,000 30% (12,174,500 shares, total acquisition price: approx. 25.5% 40,000 ¥31.0 billion) 25.2% 24.7% Scheduled date of cancellation: November 29, 2019 ⚫ 30,000 25% 43,218 39,527 Ratio to the total number of shares outstanding before ⚫ 33,596 29,643 20,000 the cancellation: 1.23% 24,704 10,000 20% 3/'15 3/'16 3/'17 3/'18 3/'19 Total Dividends Share Buyback Total Shareholder Return 10 MITSUI FUDOSAN CO.,LTD