Investor Presentation August 2019 - PowerPoint PPT Presentation

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

Contents １． About Mitsui Fudosan P4 1-1 Highlights P7 1-2 Mitsui Fudosan Group Long-Term Vision 【 VISION 2025 】 P10 1-3 Capital Policy P11 1-4 Portfolio Strategies ２． Core Businesses ： Overview & Strengths P16 2-1 Leasing Business<Office Buildings, Retail Facilities, Others> P24 2-2 Property Sales Business <Property Sales to Individuals, Property Sales to Investors> P28 2-3 Management Business <Property Management, Brokerage, Asset Management, etc.) P30 2-4 (Appendix)Logistics Facility Business P31 2-5 (Appendix)Hotel and Resort Business P33 2-6 (Appendix)Global Business ３． Financial Statements P37 3-1 Summary of Results for the Three Months Ended June 31, 2019 P40 3-2 Forecasts for the Year to March 2020 (FY 2019) P41 3-3 Summary of Results for the Year Ended March 31, 2019 P44 3-4 Investment and Financial Data 4 ． Appendices(Market Trends) P46 4-1 Leasing Business Development Example P47 4-2 Market Trends/Leasing Business/Office Buildings P50 4-3 Market Trends/Leasing Business/Retail Facilities P51 4-4 Market Trends/Property Sales Business/To Individuals P52 4-5 Market Trends/Property Sales Business/To Investors P53 4-6 International Visitors to Japan P54 4-7 Shareholder Composition P55 4-8 Operating Income by Segment P56 Disclaimer MITSUI FUDOSAN CO.,LTD 2

１． ABOUT MITSUI FUDOSAN

1-1 ． Highlights About Mitsui Fudosan Revenue Structure Other 5% Mitsui Home Leasing 14% 32% Revenue from Operations Management (For the Year ended March 31,2019) 20% 1,861.1 billions of yen Property Sales 29% Three Core Businesses and Breakdown of each Revenue As of March2019 Leasing Business Property Sales Business Management Business Leased Floor 4% Asset Under Units Booked Space Management (Condominiums) (Incl.Managed Properties) 27% Office Buildings 46% 3,283 units 3.90 Trillions yen 3,148 thousand ㎡ 40% 54% 56% 73% Retail Facilities 2,193 thousand ㎡ Property sales to individuals(Domestic) Property Management Office Buildings Retail Facilities Others Property sales to Investors and Individuals(Overseas) Brokerage,Asset management,etc. MITSUI FUDOSAN CO.,LTD 4

1-1 ． Highlights About Mitsui Fudosan Performance Highlights Long-Term Vision VISION 2025 (Billions of yen) 300.0 Leasing Property sales Management Others(*1) 52.0 270.0 Profit Attributable to owners of parent(*2) 53.4 48.7 240.0 53.8 210.0 111.0 52.4 98.0 170.0 168.6 180.0 83.0 49.3 155.8 65.2 49.9 131.8 150.0 41.5 44.5 117.7 45.4 27.0 120.0 100.1 23.0 76.8 90.0 59.4 141.9 144.0 138.3 135.7 60.0 124.1 109.2 107.8 104.3 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(E) Operating income 148.1 172.5 186 202.4 232.6 245.9 262.1 267 (Billions of yen) Profit Attributable to Owners 59.4 76.8 100.1 117.7 131.8 155.8 168.6 170 of parent(Billions of yen) Depreciation 59 56 61.2 67.4 71.3 70.1 79 85 (Billions of yen) Cash dividends per share 22 22 25 30 34 40 44 44 (Yen) Total amount of treasury stock － － － － － 150 160 － acquired(Billions of yen) Total shareholder return 32.5 25.1 24.1 25.2 25.5 35.0 35.1 － ratio（％）（*3） ROA(%) 3.7 4.1 4.1 4.1 4.6 4.6 4.4 － ROE(%) 5.3 6.3 6.4 6.2 6. 8 7.4 7.4 － *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 MITSUI FUDOSAN CO.,LTD 5

1-1 ． Highlights About Mitsui Fudosan Financial Highlights Trend of D/E ratio, etc. B/S 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 MITSUI FUDOSAN CO.,LTD 6

1-3 ． Mitsui Fudosan Group Long-term Vision 【 VISION2025 】 About Mitsui Fudosan ※ Announced in May 2018 the MitAspirations for sui Fudosan Group MITSUI FUDOSAN CO.,LTD 7

1-3 ． Mitsui Fudosan Group Long-term Vision 【 VISION2025 】 About Mitsui Fudosan ※ Announced in May 2018 Basic Strategies Achieve Society 5.0 Contribute to the SDGs Establish a sustainable society Pursue common social value Drive sustainable profit growth 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 MITSUI FUDOSAN CO.,LTD 8

1-3 ． Mitsui Fudosan Group Long-term Vision 【 VISION2025 】 About Mitsui Fudosan ※ Announced in May 2018 OUTLOOK FY2018 FY2019 Around 2025 actual Forecasts released on May 10, 2019 ¥ 262.1 billion ¥ 267 billion Around ¥ 350 billion Consolidated operating income 19.8 ％ － Around 30 ％ 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 Shareholder Return Policy ▶ 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 order to strengthen shareholder returns, Mitsui Fudosan undertakes the stable payment of dividends while also flexibly repurchasing its own shares in a bid to enhance capital efficiency. ▶ Mitsui Fudosan has identified a total shareholder return ratio of around 35% of profit attributable to owners of parent. MITSUI FUDOSAN CO.,LTD 9

1-4 ． Capital Policy About Mitsui Fudosan Basic Capital Policy ▶ Undertaking the stable payment of dividends while flexibly repurchasing own shares ： Total shareholder return ratio =Around 35% of profit attributable to owners of parent. Shareholder Return Enhancements Continuously Enhance Corporate Value, Increase Shareholder Value 【 ROE Trends 】 3/’12 3/’13 3/’14 3/’15 3/’16 3/’17 3/’18 3/’19 4.8% 5.3% 6.3% 6.4% 6.2% 6.8% 7.4% 7.4% Investment for Growth and Financial Building of Quality-Based Soundness Asset Portfolio ▶ Management of financial leverage : ▶ Building of quality-based asset portfolio: Ensuring of appropriate D/E ratio level ROA ≈ 5% level around 2025 【 D/E Ratio Trends 】 ▶ Reinvestment of profits in good investment opportunities: (Time) 1.80 From NOI return point of view in Japan 2.50 1.60 1.18 1.24 2.00 1.16 1.15 1.06 Central Tokyo prime office buildings ≈ 5%, 1.50 1.00 0.50 Retail Facilities ≈ 8% (land holding), ≈12 % (lease-land type) 0.00 Targets set by project 3/’13 3/’14 3/’15 3/’16 3/’17 3/’18 3/’19 MITSUI FUDOSAN CO.,LTD 10