Mitsui Fudosan Co., Ltd. · TSE:8801
Mitsui Fudosan — FY2022 Earnings Presentation
45 slides from Mitsui Fudosan's earnings presentation, May 12, 2023
Slide 1: Analyst Meeting Presentation, Year Ended March 31, 2023
Year Ended March 31, 2023 Analyst Meeting Presentation May 12, 2023 https://www.mitsuifudosan.co.jp/english/ 1
Slide 2: President and CEO Takashi Ueda biography
1.paddy Biographical field introduction Mitsui Fudosan Co., Ltd. President and Chief Executive Officer Takashi Ueda 【Brief personal history】 *Some parts are omitted. 1983 Joined Mitsui Fudosan Co., Ltd. Condominium Apartments Dept. Business Sect. 1983 (in charge of Yokohama) Seconded to 1992 Mitsui
Slide 3: Biographical introduction: branch offices and non-performing loans
1.paddy Biographical field introduction Starting with experience in branch offices, secondments, etc. Engaged in the disposal of non-performing loans after the collapse of the bubble economy. 1983 Joined Mitsui Fudosan Co., Ltd. Condominium Apartments Dept. Business Sect. 1983 (in charge of Yokohama
Slide 4: Biographical introduction: real estate securitization
1.paddy Biographical field introduction Dawn of real estate securitization Promoting “holding & leasing, development & sales and Management” and “Joint Value Creation Model with Investors" 1983 Joined Mitsui Fudosan Co., Ltd. Condominium Apartments Dept. Business Sect. 1983 (in charge of Yokohama) S
Slide 5: Biographical introduction: Office Building Division
1.paddy Biographical field introduction Capture new business opportunities at Office Building Division Advancing new workstyle and Mixed-use developments 1983 Joined Mitsui Fudosan Co., Ltd. Condominium Apartments Dept. Business Sect. 1983 (in charge of Yokohama) Seconded to 1992 Mitsui Fudosan Fina
Slide 6: Biographical introduction: WORK STYLING and life science
1.paddy Biographical field introduction Launch of the “WORK STYLING” and Nihonbashi Life Science Initiative Strengthening International Competitiveness and Creating “Business Platforms” 1983 Joined Mitsui Fudosan Co., Ltd. Condominium Apartments Dept. Business Sect. 1983 (in charge of Yokohama) Seco
Slide 7: Recognition of external environment
2.Recognition Recognition ofof external External environment Environment Downgraded No time to Conversion Rising COVID-19 to wait for from Geopolitical Category5 climate Era of low risk Infectious Diseases change action interest rates Mitsui Fudosan Year Ended March 31, 2023 Analyst Meeting Presenta
Slide 8: Drawing a roadmap for the next era
3. Mission asofnew Recognition president External Environment Investors’ Severe Getting better Perspectives & experiences with age Minds New Business External Putting Creation and Perspectives people first Promotion Drawing a roadmap for the next era Mitsui Fudosan Year Ended March 31, 2023 Analyst
Slide 9: FY2023 operating income forecast: 330.0 billion yen
4.Forecast for Recognition of FY2023 External Environment (Billions of yen) 350 330.0 305.4 FY2023 300 Operating Income 280.6 Forecast 250 244.9 330.0 billion yen 203.7 (+24.5 billion yen 200 from the previous year) Record High 150 FY2019 FY2020 FY2021 FY2022 FY2023 Mitsui Fudosan Year Ended March 3
Slide 10: FY2023 forecast by segment
4.Forecast for Recognition of FY2023 External Environment (Billions of yen) Other Leasing Record profits + +17.6 149.7 billion yen ⇒ 162.0 billion yen △4.9 Property Sales Record profits corporate 145.8 billion yen ⇒ 146.0 billion yen facility expenses Operations Property Sales ・Domestic housing: ＋ ＋
Slide 11: FY2023 profit attributable to owners of parent: 210.0 billion yen
4.Forecast for Recognition of FY2023 External Environment (Billions of yen) FY2023 210.0 210 196.9 Profit attributable to owners of parent 183.9 Forecast 176.9 160 210.0 billion yen (+13.0 billion yen from the previous year) 129.5 Record High 110 FY2019 FY2020 FY2021 FY2022 FY2023 Mitsui Fudosan Yea
Slide 12: Dividend per share forecast: 68 yen
4.Forecast for Recognition of FY2023 External Environment Trends in Dividend per share and profit a Attributable to owners of parent 68 FY2023 (Yen) (planned) 70 62 (Millions of yen) 250,000 Dividend per share 60 55 (forecast) 50 200,000 68 yen 44 44 40 44 40 150,000 34 30 (+6 yen 30 25 100,000 14 2
Slide 13: Competitive advantage and risk tolerance
5. competitive advantage/risk tolerance Profit-generating ability in "holding & leasing, development & sales and Management" “Holding & leasing, "Joint Value Creation Model development & sales with Investors " and Management" Pursue profitability and efficiency by not only “holding & leasing”, Flexi
Slide 14: Prime locations and high-specification properties becoming more popular
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing Talent Acquisition, Convenience, Corporate Branding Prime locations and high-specification properties are becoming more and more popular Nihonbashi Takashimaya Nihonbashi Muromachi msb Tamachi (S and N buildings) Tokyo Midtown Hibiya Mit
Slide 15: Rejuvenation of portfolio, increase in mixed-use assets
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing Rejuvenation of portfolio, increase in Mixed-use assets in central cities Newly built property Mixed-Use assets in central cities (within 5 years of construction) (Midtown, COREDO, 5 major properties, HY) 10% 28% Fiscal Year 2016 90%. 72
Slide 16: Intangible services to strengthen tenant relationships
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing Intangible services to strengthen long-term relationships with tenants Provision of green power to tenants Status of companies supported by “&well” Number of Work Styling Members Provision of green electricity in that are seeking certifi
Slide 17: Creation of new demands through unique initiatives
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing Creation of new demands through our unique initiatives Mitsui Fudosan Year Ended March 31, 2023 Analyst Meeting Presentation 17
Slide 18: Mixed-use development design
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing “Mixed-Use” development design for "a city you want to visit" and "an office you want to work in" The city and office chosen by corporate leaders as a relocation destination 7-38th Floor 27th floor Office Floors tenant lounge & fitness g
Slide 19: Mixed-use development design: amenity and productivity
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing “Mixed-Use” development design for "a city you want to visit" and "an office you want to work in" The city and office chosen by corporate leaders as a relocation destination 7-38th Floor 27th floor Office Floors tenant lounge & fitness g
Slide 20: Mixed-Use Neighborhood: Nihonbashi
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing Mixed-Use Neighborhood : Nihonbashi work rest healing living fun gather learning Mitsui Fudosan Year Ended March 31, 2023 Analyst Meeting Presentation 20
Slide 21: East side of Tokyo Station area development
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing The areas on the east side of Tokyo Station will work together, evolve into "Tokyo" that the world will be proud of, and become a "city you want to visit”. * Nihonbashi Muromachi 1-Chome District Nihonbashi * Yaesu 1- Nihonbashi chome No
Slide 22: Nihonbashi is the No. 1 popular location for office relocations
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing The Nihonbashi area is the No. 1 popular location for office relocations ⊳Questionnaire on future demand for new office leases among 25% No. 1 companies whose headquarters are located in the 23 wards of Tokyo. ⊳ Average of the percentage
Slide 23: Asking rents rose more than 5% in Nihonbashi and Yaesu
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing Asking rents rose more than 5% in the Nihonbashi and Yaesu areas Shinjuku Kabukicho Nishi-Shinjuku Nihonbashi Marunouchi・ Honcho,Muromachi Otemachi Kyobashi,Yaesu,Nihonbashi Akasaka/Aoyama Ginza Shinbashi Toranomon Shibuya Dogenzaka Ropp
Slide 24: Lower vacancy rate and more stable occupancy than overall market
5. Competitive Advantage and Risk Tolerance ①Holding & Leasing Decoupling from the Office leasing market Relatively lower Vacancy rate and more stable occupancy than the Overall market (The completion of TMT Yaesu eliminated the impact of a transitory increase in 12/6 10.00% 9.43% Central Tokyo 5 Wa
Slide 25: Stable realization of unrealized gains
5. competitive advantage and risk tolerance ②Development & Sales Asset portfolio replacement, including fixed assets Stable and continuous realization of "unrealized gains" Rental Properties Real property for sale Gain on sales of real estate (tangible and intangible fixed assets) (Excluding residen
Slide 26: Safety factor in development planning
5. competitive advantage and risk tolerance ②Development & Sales Ensure sufficient buffer during development planning Safety factor set to take into account market fluctuations such as interest rate and cost increases Factoring in the risk of rental market fluctuations And rising interest rates safe
Slide 27: Holding assets resilient to rising cap rates
5. competitive advantage and risk tolerance ②Development & Sales Holding Assets are well resilient to the risk of rising Cap rates Operational time unrealized At the time of sale gains NOI yield: 6.3%. NOI yield: approx. 3-4% (recent results) Market value = NOI ÷ NOI yield at time of sale (65 billio
Slide 28: Management: assets under management and exit channels
5. competitive advantage and risk tolerance ③ Management Abundant exit channels, including not only our sponsored J-REITs but also financial and business corporations Expanding management profit under the "Joint Value Creation Model with Investors " Changes in assets under management Management serv
Slide 29: Communicating the Group's capabilities in generating value
5. competitive advantage/risk tolerance Continuing to communicate Mitsui Fudosan Group’s capabitilies in generating value "holding & leasing, "Investor Coexistence" development & sales Pursue profitability and efficiency by not and Management" ”Holding & only “holding & leasing”, ”development & sale
Slide 30: Current status and future of operational assets
6. current status and future of operational assets To Recovery Retail Hotel Tokyo Dome Mitsui Fudosan Year Ended March 31, 2023 Analyst Meeting Presentation 30
Slide 31: Retail: Mitsui Shopping Park
6.Current status and future of operational assets ①Retail Number of Facility sales Mitsui Shopping Park Members (million) 1,350 Over 13 million 1,300 1,250 Vacancy rate of ： Retail Facilities 2.2% (as of the end of March 2023.3) 1,200 Steady growth in National Commercial Facilities Sales Ranking TOP
Slide 32: Hotel: occupancy and ADR trends
6.Current status and future of operational assets ②Hotel Occupancy and ADR trends for lodging-oriented hotels Jan-Mar 2023 RevPAR Occupancy ADR vs. Pre-COVID19 (Jan-Mar 2019) rate (%) 110% (yen) 110 18,000 Approx. 16,000 90 Inbound Lodging Ratio (Tokyo) 60 60％ 14,000 % level Approx. 70 End of FY2018
Slide 33: Tokyo Dome: return to profitability
6.Current status and future of operational assets ③Tokyo-Dome FY2022: Operating income returns to profitability FY2023: Recovery to be higher than last fiscal year When watching sports Renewal of Tokyo Dome City vocal support (Investment to strengthen profitability) New theater to be opened by Tokyo
Slide 34: Reduction of business risks: learnings of COVID-19
6.Current status and future of operational assets ④Reduction of Business Risks Branding Income/expense Enhancement Growth of our basis with risk unique strengths Strengthen sales and absorb costs factored in customer retention job retention cost reduction Improvement of Talent Acquisition repeat bus
Slide 35: Mixed-use development integrating office and hotel
6.Current status and future of operational assets ④Reduction of Business Risks Extension of Mitsui Fudosan's unique strengths (e.g.) Mixed-Use development(integrated development of office and hotel) aimed at strengthening the competitiveness of the neighborhood × × THE RITZ-CARLTON Bulgari Hotel Tok
Slide 36: Utilizing Tokyo Dome's stadium operation skills
6.Current status and future of operational assets ④Reduction of Business Risks Extension of Mitsui Fudosan's unique strengths (e.g.) Utilizing Tokyo Dome Corporation’s Highly rare skills related to stadium operation and management New Chichibunomiya Rugby Stadium (tentative name) construction and op
Slide 37: Current status and future of overseas business
7. current status and future of overseas business Overseas business profit ratio in FY2022 is approx. 19 ％ 50HY profit contribution, extensive development pipeline Overseas Income Operating Income Ratio of Overseas Income Mitsui Fudosan Year Ended March 31, 2023 Analyst Meeting Presentation 37
Slide 38: Growth potential and efficiency: BS control
8. both growth potential and efficiency Promoting BS control from a long-term perspective Continuous acquisition of assets quality assets Real estate Office, retail, logistics, interest- loan investment for sale residential, etc. repayment bearing debt (Acquisition) Fixed asset portfolio Office, ret
Slide 39: Shareholder return
9. shareholder return A stance of Stable and continuous Continue to pay return progressive dividends The stable payment of dividends while flexible repurchasing own shares Having consistently maintained and improved linked to profit growth dividends,Progressive dividend perfomance Trends in Total Di
Slide 40: Finally.
10. social and economic value Finally. Mitsui Fudosan Year Ended March 31, 2023 Analyst Meeting Presentation 40
Slide 41: Mixed-use development x life science initiative in Nihonbashi
10. social and economic value Mixed-Use development x Life Science initiative in Nihonbashi Provision of the Platform Social Value (Achieve a sustainable society) Economic Value (Drive sustainable profit growth) To inspire people, enrich their lives “Earnings and profit growth." and to achieve a sus
Slide 42: Nihonbashi, home to many pharmaceutical companies
10. social and economic value Nihonbashi had been “Home to many pharmaceutical Companies“ The Pharmaceutical industry scattered around this area Mitsui Fudosan LINK-J Base pharmaceutical association member company pharmaceutical industry association Mitsui Fudosan Year Ended March 31, 2023 Analyst M
Slide 43: Life science: creation of new industries
10. social and economic value Life Science Creation of new industries & Becoming a sacred place Number of Number of Annual event members events per year Participation (estimated) 652 *1 834 times*2 More than 200 ,000*2 Number of Number of our tenants Life Sciences Buildings (Life Sciences Organizati
Slide 44: Knot: creating new business and demand as a platformer
11. knot We create new business and new demand as a platformer focused on creating neighborhood. 1. Create new growth opportunities looking 10 to 20 years into the future 2. Pursue sustainable growth with asset and capital efficiency 3. Provide stable and continuous shareholder returns linked to sus
Slide 45: Disclaimer
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 presenta