#1Fiscal Year Ended March 2011 Investor Presentation May 2011 MITSUI FUDOSAN www.mitsuifudosan.co.jp/english COREDICTE CRIEDOTE COREDO COREDO#2Contents 1. Management Strategy 1-1. Management Strategy 1-2. Management Strategy | 1-3. Management Strategy II 2 3 3. Medium-to-Long-Term Growth Strategy 3-1. Growth Areas 4. Summary of Results for the Year Ended March 2011 4 (FY 2010) 5 4-1. Consolidated Income Statements 21 24 1-4. Management Strategy III 2. Core Businesses: Overview & Strengths 2-1. Leasing Business: Overview & Strengths 2-1-1. Analysis of Revenue 4-2. Consolidated Segment Revenue & Operating Income 23 4-3. Consolidated Balance Sheets 6 4-4. SPC Investments & Off-Balance-Sheet Debt 2222 22 24 25 2-1-2. Premier Assets (Office Buildings) 7 2-1-3. Premier Assets (Retail Facilities) 8 5. Forecast for the Year to March 2012 (FY 2011) 5-1. Consolidated Income 26 2-1-4. Mitsui Fudosan's Strengths (Office Buildings) 2-1-5. Major Projects (Office Buildings) 9 10 5-2. Financial Position, Property Sales to Individuals (Reference) 22 27 2-1-6. Mitsui Fudosan's Strengths (Retail Facilities) 2-1-7. Major Projects (Retail Facilities) 11 Appendices (Market Trends) 12 2-2. Property Sales Business: Overview & Strengths 2-2-1. Mitsui Fudosan's Strengths Appendix 1: Leasing Business Market Trends (Office Buildings) 28 13 2-2-2. Major Projects (Property Sales to Individuals) 2-2-3. Model for Cooperation with Investors 2-2-4. Real Property for Sale (Property Sales to Investors) 16 256 15 Appendix 2: Leasing Business Market Trends (Retail Facilities) 30 30 Appendix 3: Property Sales Business Market Trends (Property Sales to Individuals) 31 17 2-3. Management Business: Overview & Strengths 2-3-1. Mitsui Fudosan's Strengths Appendix 4: Property Sales Business Market Trends (Property Sales to Investors) 32 18 Appendix 5: Shareholder Composition 33 2-3-2. Mitsui Fudosan's Strengths (Property Disclaimer 34 Management) 19 2-3-3. Mitsui Fudosan's Strengths (Brokerage, Asset Management, etc. ) 20 1#31. Management Strategy#41. Management Strategy 1-1. Management Strategy I. II. III. Synergies among the Three Core Businesses Growth from the Three Core Businesses Combined Maintaining Financial Strength to Support Future Growth 2#51. Management Strategy 1-2. Management Strategy I Synergies among the three core businesses Leasing Business Income Gains Development Capabilities Property value creation Three Core Businesses Management Business Fee Incomes Management Capabilities Ability to maintain & improve property value Property Sales Business Capital Gains Trading Capabilities Wealth of property market expertise 3#61. Management Strategy 1-3. Management Strategy II Aiming for growth from the three core businesses combined (Billions of yen) (Billions of yen) Net income (Right scale) Operating income Holding Trading I Management (to FY ended 3/2006) (Left scale) Leasing 200 Property Sales Management (from FY ended 3/2007) 120 179.2 171.5 180 161.8 100 47.3 38.8 160 137.5 87.3 46.1 83.5 120.5 120.0 115.0 140 115.7 75.2 80 80 103.2 109.2 40.9 29.7 32.1 31.0 120 49.2 57.2 33.1 22.1 60.0 28.7 56.5 100 48.7 12.4 16.1 17.0 60 60 49.9 44.3 47.0 80 60 60 60 40 40 31.9 32.2 34.3 40 28.6 25.5 94.1 95.5 85.0 88.9 189.0 75.6 65.0 60.1 14.4 60.0 63.3 20 20 40 20 20 0 -15.7 Other¹ FY ended -11.8 3/2003 3/2004 3/2005 -11.7 -11.0 3/2006 -8.7 3/2007 -10.3 3/2008 -10.6 3/2009 -17.1 3/2010 3/2011 -17.1 -22.0 3/2012 (E) 1:Other includes the segments Construction, Sales of Housing Materials and Merchandise, Facility Operations, Other and parent company SG&A expenses through the fiscal year ended March 2006. The segments Mitsui Home, Other and parent Company SG&A expenses have been included in nonconsolidated since the fiscal year ended March 2007. 4#71. Management Strategy 1-4. Management Strategy III Maintaining financial strength to support future growth Interest-bearing debt, off-balance-sheet debt, and D/E ratio at fiscal year-end (Billions of yen) 2,000 Interest-bearing debt¹ (LHS) 2.22 2.00 Off-balance-sheet debt² (LHS) D/E ratio³ (RHS) 1,500 1,397.2 1.86 1,321.5 1,279.0 1,258.4 1,199.2 1,000 500 1.40 1.33 1,820.0 1,733.5 1,746.7 1,740.0 1,550.4 1.60 1.77 1.73 1.71 (Times) 2.50 2.00 1.50 1.00 421.0 399.0 410.0 381.0 342.0 0.50 246.0 215.0 193.0 95.0 0.00 0 As of 3/2003 3/2004 3/2005 3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 (E) 1: Interest-bearing debt: the sum of short-term debt, commercial paper, bonds redeemable within one year, corporate bonds and long-term debt 2: Off-balance-sheet debt the debt associated with SPCs that is within the Company's scope of responsibility 3: D/E ratio: Interest-bearing debt / shareholders' equity 58#82. Core Businesses: Overview & Strengths#92-1. Leasing Business: Overview & Strengths#102-1. Leasing Business: Overview & Strengths 2-1-1. Analysis of Revenue A portfolio balanced between office buildings and retail facilities OUTLET PARK Analysis of Leasing Segment Revenue (FY ended March 2011) Leasing segment revenue: JPY 423.4 bn Other JPY 5.9 bn 1% MITSUI OUTLET PARK Sapporo Kita-Hiroshima Kita-Hiroshima, Hokkaido ■ Store floor space: = 23,000m² ■ Opened in April 2010 MITSUI OUTLET PARK Shiga Ryuo Gamo-gun, Shiga ■Store floor space: ≈ 27,000m² Opened in July 2010 Retail Facilities JPY 125.8 bn 30% Office Buildings JPY 291.7 bn 69% Sumitomo Mitsui Banking Corporation Head Office Building 1 Chiyoda-ku, Tokyo ■Rentable floor space: ≈ 46,000m² Completed in July 2010 Muromachi-Higashi Mitsui Building Chuo-ku, Tokyo ■Rentable floor space: ≈ 14,000m² Completed in October 2010 6#112-1. Leasing Business: Overview & Strengths 2-1-2. Premier Assets (Office Buildings) Name Location Floor space Nihonbashi Mitsui Tower Chuo-ku, Tokyo ≈130,000m² Tokyo Midtown Rentable floor space ≈ 51,000m² Minato-ku, Tokyo ≈ 311,000m² ≈184,000m² Shinjuku Mitsui Building Shinjuku-ku, Tokyo 179,000m² Kasumigaseki Building Chiyoda-ku, Tokyo 153,000m² Floors Date completed 384 below ground July 2005 54+5 below ground March 2007 ≈ 104,000m² 55+3 below ground September 1974 ≈ 96,000m² 36+3 below ground April 1968 Name Location Floor space Rentable floor space Floors Date completed Gran Tokyo North Tower Chiyoda-ku, Tokyo ≈212,000m² ≈ 65,000m² 434 below ground October 2007 1251 Avenue of the Americas Building Midtown Manhattan, New York City, USA ≈214,000m² ≈214,000m² 54+4 below ground December 1986 Nihonbashi 1-Chome Building Sumitomo Mitsui Banking Corporation Head Office Buildings Akasaka Biz Tower Gate City Ohsaki Chuo-ku, Tokyo ≈ 98,000m² Chiyoda-ku, Tokyo ≈ 80,000m² Minato-ku, Tokyo ≈ 218,000m² ≈ 99,000m² 393 below ground January 2008 Shinagawa-ku, Tokyo ≈ 291,000m² ≈155,000m² 24+4 below ground January 1999 7 ≈ 50,000m² 20+4 below ground January 2004 ≈ 46,000m² 234 below ground July 2010#122-1. Leasing Business: Overview & Strengths 2-1-3. Premier Assets (Retail Facilities) Mitsui Shopping Park LaLaport Name LaLaport TOKYO-BAY LaLaport YOKOHAMA Yokohama, Kanagawa Urban Dock LaLaport Location Floor space Store floor Funabashi, Chiba 282,000m² ≈ 115,000m² 540 stores space Floors Date completed April 1981 ≈226,000m² ≈ 93,000m² 280 stores March 2007 MITSUI OUTLET PARK TOYOSU Koto-ku, Tokyo ≈165,000m² ~62,000m² 190 stores LAZONA Kawasaki Plaza Kawasaki, Kanagawa ≈ 172,000m² ≈ 79,000m² ≈ 300 stores September 2006 October 2006 Urban Facilities LaLaport SHIN MISATO Misato, Saitama ≈ 142,000m² ≈ 59,000m² ≈170 stores September 2009 Mitsui Shopping Park LaLagarden OUTLET H OUTLET PARK OUTLET PARK Name Location Floor space MITSUI OUTLET PARK Sapporo Kita-Hiroshima Kita-Hiroshima, Hokkaido ≈ 40,000m² =23,000m² MITSUI OUTLET PARK Shiga Ryuo Gamo-gun, Shiga ≈44,000m² ≈ 27,000m² Store floor space Floors 130 stores ≈ 160 stores Date April 2010 completed July 2010 MITSUI OUTLET PARK Marine Pia Kobe Kobe, Hyogo Koujun Building Chuo-ku, Tokyo ≈ 17,000m² ≈ 36,000m² ≈22,000m² ≈ 130 stores October 1999 ≈ 8,500m² 19 stores October 2004 LaLagarden Kawaguchi Kawaguchi, Saitama ≈60,000m² ≈ 26,000m² ≈ 90 stores November 2008 8#132-1. Leasing Business: Overview & Strengths 2-1-4. Mitsui Fudosan's Strengths (Office Buildings) A portfolio concentrated in central Tokyo and relationships with quality tenants Office Building Revenue by Area (FY ended March 20111) Regional 7% Other Metropolitan Tokyo 16% Floor Space of Mitsui Fudosan Properties in 5 wards² of Central Tokyo (As of March 31, 2011) 5 wards of Central Tokyo² 77% Shinjuku-ku ≈100,000m² Chiyoda-ku ≈ 200,000m² Stable, long-term relationships with approximately 3,000 tenant companies 'TORAY CHUGAI PHARMACEUTICAL CO., LTD. YAHOO! Innovation by Chemistry Roche Roche Group FUJIFILM LIXIL JAPAN FAST RETAILING Daiwa Bank of America l Link to Good Living Securities Group Inc. 三井住友銀行 SMBC NTT Merrill Lynch HAKUHODO ANAL RICOH HITACHI Inspire the Next 1: Nonconsolidated basis, includes owned and master-leased 2: Chiyoda-ku, Chuo-ku, Minato-ku, Shinagawa-ku and Shinjuku-ku Designing The Future KDDI Minato-ku ≈ 100,000m² Shinagawa -ku =30,000m² Chuo-ku ≈ 300,000m² 9#142-1. Leasing Business: Overview & Strengths 2-1-5. Major Projects (Office Buildings) Using our development capabilities to continuously improve our portfolio Major Newly Operational Projects Central Tokyo Portfolio Map Project Name FY Completed 2010 2011 (* Indicates subleased or jointly owned property) Sumitomo Mitsui Banking Corporation Head Office Building Muromachi-Higashi Building (Muromachi East Mitsui Area 2-2) Hiroshima Kamiyacho Project* Nagoya Mitsui Building New Building Shimbashi 1-Chome M-SQUARE Onarimon M-SQUARE Chiyoda-ku, Tokyo Chuo-ku, Tokyo Location Store Floor Space Newly Operational Projects (Operational in 2010, under development, in planning) 46,000 m² Existing Properties Kanda (Operational since 2009) 14,000 m² Naka-ku, Hiroshima 14,000 m² Nakamura-ku, Nagoya 11,000 m² Line Otemachi 1-Chome Mitsui Building Station Minato-ku, Tokyo = 5,000 m² Otemachi Minato-ku, Tokyo = 6,000 m² JR Yam Tohoku Line Keihin-Line JR Tohoku Joetsu Shinkansen Kanda Nihonbashi Honcho 3-Chome Project* Chuo-ku, Tokyo = 8,000 m² Mitsukoshimae Otemachi Hamarikyu Mitsui Building* Chuo-ku, Tokyo 12,000 m² Yokohama Mitsui Building 2012 Nihonbashi Honcho 2-Chome Project* Nishi-ku, Yokohama Chuo-ku, Tokyo 49,000 m² Aomi Q Area Project* Koto-ku, Tokyo 2013 Muromachi East District Development Projects Area 2-3* Chuo-ku, Tokyo =2 14,000 m² 44,000 m² 19,000 m² Otemachi Sumitomo Mitsui Banking Corporation Head Office Building (Completed 2010) Tokyo Nijyubashimae Nihonbashi Tokyo Station/ Muromachi East District Development Projects Area 1-5* Chuo-ku, Tokyo 8,000 m² Scheduled for completion in FY2014 and after Sapporo Mitsui Building Reconstruction Project (Sapporo) Chiyoda Fujimi 2-Chome Project (Chiyoda-ku, Tokyo) Kita-Shinagawa 5-Chome Area 1 Redevelopment Project (Shinagawa-ku, Tokyo) Sanshin Building/Hibiya Mitsui Building Reconstruction Project (Chiyoda-ku, Tokyo) ⚫ Nihonbashi 2-Chome Project (Chuo-ku, Tokyo) Otemachi 1-Chome Mitsui Building (Chiyoda-ku, Tokyo) FY completed and rentable floor space may change in the future. Some project names are tentative. Hibiya Yurakucho Yurakucho Station Hibiya Tokyo JR Tokaido Shinkansen JR osuka Nihonbashi Honcho 3-Chome Reconstruction Project (scheduled for completion in 2011) Muromachi East District Development Projects Areas 1-5 & 2-3 Shinniho b (scheduled for completion in 2013) Nihonbashi Honcho 2-Chome Area Project (scheduled for completion in 2012) Muromachi-Higashi Mitsui Building (Completed 2010) Toei Asakusa okyo E xpressway Hibiya Line Hanzomon Line Kayabacho Nihonbashi 2-Chome Project (Tentative Name) Kyobashi Takaracho Ginza 1-chome Sanshin Building/ Hibiya Mitsui Building Reconstruction Project Ginza Ginza Hacchobori JR Keiyo Line Hacchobori 10#152-1. Leasing Business: Overview & Strengths 2-1-6. Mitsui Fudosan's Strengths (Retail Facilities) Diverse types of facilities and a stable revenue structure Retail Facility Revenue by Category (FY ended March 2011)1 Ratio of Fixed & Sales-Linked Rent by Category (FY ended March 2011) 1 Regional mall 三井ショッピングパーク 1.1. LaLaport Urban facilities 100% ≈5% Other 5% 10% 5% ≈ 20% = 20% 80% ≈ 40% Lifestyle center 60% 三井ショッピングパーク 50% ≈ 95% ..LaLa garden 40% ≈ 80% ≈ 80% 30% ≈ 60% 20% m MITSUI CO OUTLET PARK 1: Includes master-leased properties Strategy: respond to the needs of tenants (approximately 1,900 companies) 0% LaLaport Outlet Parks Others All facilities Fixed rent Sales-linked rent UNI QLO FOREVER 21 H&M Loft MUJI 無印良品 CREATIVE LIFE STORE TOKY HANDS G ZARA BARNEY S NEW YORK BANANA REPUBLIC ニトリ BIC CAMERA アカチャンホンポ Francfranc SEVEN HOUSINGS TOHO CINEMAS Kidzania 11#162-1. Leasing Business: Overview & Strengths 2-1-7. Major Projects (Retail Facilities) We develop facilities that are best suited to their area, with a focus on metropolitan Tokyo Major Newly Operational Projects Mitsui Fudosan Retail Facilities in Metropolitan Tokyo FY Opened Project Name (* indicates master-leased or jointly owned property) Location Store floor space 2010 Ginza Trecious* Chuo-ku, Tokyo 4,500 m² MITSUI OUTLET PARK Sapporo Kita-Hiroshima Stellar Town Kita-Hiroshima, Hokkaido 23,000 m² 16 MITSUI OUTLET PARK Shiga LaLaTerrace MINAMISENJU Gamo-gun, Shiga 27,000 m² MITSUI OUTLET PARK Iruma Ryuo LaLagarden KAWAGUCHI Ginza Yanagidori Building (formerly G1 Project)* Chuo-ku, Tokyo 8,000 m² COREDO Muromachi Chuo-ku, Tokyo 3,600 m² MITSUI OUTLET PARK Tama Minami Osawa 2011 Ginza Komatsu Reconstruction Project* Chuo-ku, Tokyo 8,000 m² LaLaport YOKOHAMA Ningbo Outlet Project* Ningbo, Zhejiang, China 16,000 m² Treage Shirahata GINZA GLASSE Kojun Building Tokyo Midtown Shiodome City Center Aomi Q Area Project LaLagarden KASUKABE LAZONA LaLaport KASHIWANOHA LaLaport Shin-Misato COREDO Muromachi COREDO Nihonbashi GINZA TRECIOUS LaLaport TOKYO-BAY MITSUI OUTLET PARK Makuhari Ginza Yanagidori Building Ginza Namikidori Building Urban Dock LaLaport TOYOSU Ginza Komatsu Kawasaki Reconstruction Project plaza MITSUI OUTLET PARK Yokohama Bayside Mitsui Outlet Park Kisarazu Kaneda 2012 MITSUI OUTLET PARK Jazz Dream Nagashima (Phase 4) MITSUI OUTLET PARK Kurashiki Project Aomi Q Area Project* Kuwana, Mie ༤ Kurashiki, Okayama 9,000 m² 20,000 m² Koto-ku, Tokyo 49,000 m² MITSUI OUTLET PARK Kisarazu Kaneda Project Kisarazu, Chiba 25,000 m² FY opened and rentable floor space may change in the future. Some project names are tentative. Regional mall 三井ショッピングパーク 1.1. LaLaport Lifestyle center 三井ショッピングパーク m MITSUI OUTLET PARK ⚫⚫ LaLa garden Urban facilities LaLaport MITSUI OUTLET PARK LaLagarden ● Urban facilities 12#172-2. Property Sales Business: Overview & Strengths#182-2. Property Sales Business: Overview & Strengths 2-2-1. Mitsui Fudosan's Strengths Property sales to individuals: Development and sale of condominiums and detached housing to individuals Property sales to investors: Development and sale of income producing properties to institutional investors (Billions of yen) Property Sales Segment: Operating Income Property Sales to Individuals Property Sales to Investors Property Sales to Individuals (Booked in FY ended March 2011) 60.0 40.0 26.8 16.5 25.8 20.0 26.9 28.1 1.1 6.4 7.5 18.6 18.8 22.3 30.8 20.4 11.3 9.7 9.5 0.0 3/2005 3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 (E) FY ended Park Tower Gran Sky Park City Hamadayama Property Sales to Investors (Booked in FY ended March 2011) Laleport River City M-SQUARE LaLaport Iwata 13#192-2. Property Sales Business: Overview & Strengths 2-2-1. Mitsui Fudosan's Strengths (Property Sales to Individuals) Operating margin has bottomed and the sales environment is robust Sales, Land Acquisition-Related Expenditures Condominium Units Booked, Contracts during the Year and Inventories at End of FY Units Booked Contracts during the FY Inventories at End of FY and Operating Margin Sales (LHS) (Billions of yen) Land Acquisition-Related Expenditures (LHS) (%) (Units) Operating Margin (RHS) 400.0 12.0 8,000 11.4 9.4 300.0 316.3 305.0 6,339 300.9 298.0 9.0 6,000 270.3 237.8 6.7 5,628 5,249 5,206 5,455 5,000 4,651 4,487 4,331 6.0 4,000 3,889 3,321 200.0 142.3 3.8 111.7 3.1 95.4 3.2 3.0 2,000 100.0 118.4 107.4 FY ended 826 872 638 453 267 0.0 0.0 0 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 (E) FY ended 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 (E) 14#202-2. Property Sales Business: Overview & Strengths 2-2-2. Major Projects (Property Sales to Individuals) Development of competitive products primarily in metropolitan Tokyo Major Projects for Future Booking Sales by Brand & Region (FY ended March 2011) Booking Year Property Name Location Total Units (Mitsui Fudosan Share) Sales by Brand Park City Kashiwanoha Campus Nibangai Kashiwa, Chiba 880 (100%) Middle-grade condominiums park ≈ 30% THE ROPPONGI TOKYO Minato-ku, Tokyo 611 (45%) HOMES ≈ 40% 2011 Park Homes Meguro The Residence Meguro-ku, Tokyo 237 (100%) ≈ 30% Park City Kokubunji Kokubunji, Tokyo 331 (100%) Roppongi 1-Chome South Area Urban Redevelopment Project Minato-ku, Tokyo 269 (100%) Yokohama, 2012 Park Homes Okurayama 177 (100%) Kanagawa Nakano-ku, Sales by Region 2013 Nakano Mark Twin Tower Hiroo Garden Forest (Tsubaki Residence) Grand Terminal Tower Motoyawata Park Homes Kawasaki Daishi Omotesando 234 (40%) Tokyo Shibuya-ku, Tokyo Ichikawa, Chiba 381 193 (50%) (44%) Kawasaki, 127 (100%) Kanagawa Musashikosugi Station South Exit Area Redevelopment Project Kawasaki, Kansai & Chubu Metropolitan Tokyo ≈ 85% To be determined Kanagawa ≈ 10% . FY2014 and after ⚫lidabashi Station West Exit Redevelopment Project • Kita-Shinagawa 5-Chome Area Redevelopment Project • Kashimada Station West Area Redevelopment Project • Sakurajosui Apartment Houses Reconstruction Project Tsukishima 1-Chome 3, 4, 5 Redevelopment Project Chuo-ku Harumi 2-Chome Project High-grade condominiums park park MANSION COURT Large-scale developments park park TOWER CITY Other regions ≈ 5% Land Bank (Condominiums) (As of March 31, 2011) Land acquired (confirmed): approximately 18,000 units (Mitsui Fudosan Group share only) Units become available for sale over multiple fiscal years at some properties. Moreover, the fiscal year in which units become available for sale may change in the future. Some project names are tentative. Project stage (incl. redevelopment): approximately 10,000 units (before sharing) 15#212-2. Property Sales Business: Overview & Strengths 2-2-3. Model for Cooperation with Investors Multiple exit strategies and a model for cooperation with investors Private funds structured & managed by the Mitsui Fudosan Group MITSUI FUDOSAN INVESTMENT ADVISORS, INC. Corporations Management Sales Sales TV Management Mitsui Fudosan Group Sales ↓ ↑ Management Nippon Building Fund NBFF J-REITS Managed by the Mitsui Fudosan Group Nippon Building Fund, Inc. N Nippon Accommodations Fund Nippon Accommodations Fund, Inc. フロンティア不動産投資法人 Frontier Road Estate Investment Corporation Frontier Real Estate Investment Corporation 16#222-2. Property Sales Business: Overview & Strengths 2-2-4. Property for Sale (Property Sales to Investors) We use our development capabilities to create superior assets Jingumae M-SQUARE Inventory of Property for Sale to Investors1 Total: JPY 442 bn (As of March 31, 2011) On balance sheet: JPY 228 bn Completed in 2009 LaLaport SHIN MISATO Off balance sheet: JPY 214 bn Shibaura Island Air Tower Operating office buildings ≈ 25% Operating retail facilities ≈ 20% Planned & under development Operating rental housing properties ≈ 10% ≈ 45% Opened in 2009 1: Consolidated basis. On-balance sheet real properties for sale including advances paid for purchases, and assets held by SPCs for the property sales business Completed in 2007 Air Terras 17#232-3. Management Business: Overview & Strengths#242-3. Management Business: Overview & Strengths 2-3-1. Mitsui Fudosan's Strengths Property management: Stable revenue growth from increases in properties under management Brokerage, Asset management, etc. : Fee business using Group know-how (Billions of yen) 50 50 Management Business Operating Income 40 40 30 30 20 20 10 10 25.4 26.0 18.6 10.2 8.4 31.0 20.6 21.9 20.3 21.2 21.9 0 3/2007 3/2008 FY ended 3/2011 3/2012 (E) ■Property management Brokerage, Asset management, etc. *Figures for the years ending March 2007 through 2009 are for reference. 3/2009 3/2010 18#252-3. Management Business: Overview & Strengths 2-3-2. Mitsui Fudosan's Strengths (Property Management) Comprehensive management capabilities covering diverse asset classes • • Office Buildings Mitsui Fudosan Building Management Co., Ltd. (663 buildings under management) First Facilities Co., Ltd. (355 buildings under management) Retail Facilities LaLaport Management Co., Ltd. (55 facilities) Diverse Asset Classes Housing • . Mitsui Fudosan Housing Lease Co., Ltd. (44,215 subleased and consigned units) Mitsui Fudosan Housing Service Co., Ltd. (210,000 units under management) (Most recent data for each company) 19#262-3. Management Business: Overview & Strengths 2-3-3. Mitsui Fudosan's Strengths (Brokerage, Asset Management, etc. ) Providing asset management services for three REITs and for private funds Assets under Management: Track Record Assets under Management (FY ended March 2011) 30% Investors 41% Originators 7% 15% (Trillions of yen) 2.80 2.80 3.0 NBFF Nippon Building 2.70 2.70 2.35 2.5 2.15 2.0 1.80 1.44 1.5 1.20 Nippon Accommodations Fund 7% 1.0 0.5 0.0 Frontier Real Estate Investment Corporation FY ended 3/2003 3/2004 3/2005 3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 The brokerage business (Rehouse) achieved its highest transaction volume ever Transactions: 35,753 Transaction value: 1.14 trillion yen (FY ended March 2011) Brokerage ESTATE SALES NETW MITSUI REAL ES No.1 おかげさまで24年連続No.1 SINCE 1986 The Mitsui Fudosan Group's Mitsui Rehouse brand has been number one in Japan's brokerage market for individuals in terms of transaction volume for 24 consecutive years since 1986 三井のリハウス 20 20#273. Medium-to-Long-Term Growth Strategy#283. Medium-to-Long-Term Growth Strategy 3-1. Growth Areas The Mitsui Fudosan Group's Perspective Accelerating maturity: customers and their needs are becoming more diverse ✓ Strengthen and expand the remodeling business • Decision to take equity stake in Mitsui Home Remodeling Co., Ltd. (March 2011) 三井のリフォーム Accelerating globalization: markets and customers are globalizing and becoming borderless ✓ Specifying growth strategy in China and elsewhere in East Asia • Moving forward with condominium sales project and retail facility project Subsidiaries established in Shanghai in August 2009 and in Beijing in August 2010 (Tentative name) Ningbo Outlet Project (Phase I) • Ningbo, Zhejiang ⚫ Start of operations in summer 2011 Rentable floor space: 16,000 m Shanghai Ma Lu Project . Shanghai ⚫ Southern district will be completed in 12/2011 ⚫ Northern district will be completed in 12/2012 ⚫ 720 units in southern district, 460 units in northern district ✓ Initiatives to address cross-border needs • Tianjin Eco City • Tianjin Full completion in 2/2014 2,250 condominiums, 400 detached houses Dalian Software Park Phase 2 Dalian, Liaoning • Full completion in 10/2014 1,900 housing units/retail facility with floor area of 47,000m Provide solutions as a partner to overseas customers operating in Japan and Japanese customers operating overseas • Become a real estate solutions partner in global markets 21#294. Summary of Results for the Year Ended March 31, 2011 (FY 2010)#304. Summary of Results for the Year Ended March 31, 2011 (FY 2010) 4-1. Consolidated Income Statements (Billions of yen) Year ended March 2011 (FY2010) Year ended March 2010 (FY2009) Full-Year Forecast Change (Announced April 30, 2010) Actual/ Forecast Revenue from operations 1,405.2 1,384.8 20.4 1,440.0 97.6% Operating income 120.0 120.5 -0.4 121.0 99.3% Non-operating income & expenses -23.8 -26.6 2.7 -26.0 Equity in net income of affiliates 0.6 2.0 -1.3 Net interest expense -27.2 -29.2 1.9 Other 2.6 0.5 2.1 Ordinary income 96.2 93.9 2.3 95.0 101.3% Extraordinary gains/losses -12.5 3.7 -16.3 -10.0 Extraordinary gains 20.9 26.3 -5.3 Extraordinary losses 33.4 22.5 10.9 Income taxes 32.9 36.5 -3.5 34.0 Minority interests 0.8 1.0 -0.2 1.0 Net income 49.9 60.0 -10.1 50.0 99.8% Extraordinary gains Gain on sale of investment securities 20.9 Mitsui Fudosan & others 20.9 Extraordinary losses Loss on disposal of property and equipment 12.3 Mitsui Fudosan & others Loss on valuation of investment securities 6.2 Mitsui Fudosan & others Loss on disaster 4.6 Mitsui Fudosan & others Provision for loss on disaster 3.5 Mitsui Fudosan, Mitsui Fudosan Residential & others Impairment loss 4.1 Mitsui Fudosan & others Other 2.6 Mitsui Fudosan, Mitsui Home & others 33.4 22 22#314. Summary of Results for the Year Ended March 31, 2011 (FY 2010) 4-2. Consolidated Segment Revenue & Operating Income Year ended March 2011 Year ended March 2010 (FY2010) (FY2009) Change Full-Year Forecast (Announced April 30, 2010) Revenue from operations 1,405.2 1,384.8 20.4 1,440.0 Leasing 423.4 430.9 -7.5 423.0 Property sales 405.2 386.2 18.9 420.0 Management 277.9 266.6 11.2 280.0 Mitsui Home 205.1 202.8 2.2 217.0 Other 93.4 98.0 -4.5 100.0 Operating income 120.0 120.5 -0.4 121.0 Leasing 88.9 95.5 -6.6 91.0 Property sales 16.1 12.4 3.7 18.0 Management 32.1 29.7 2.4 30.0 Mitsui Home 3.7 3.6 0.1 4.2 Other 1.0 0.2 0.7 0.0 Eliminations and corporate -21.9 -21.0 -0.8 -22.2 23#324. Summary of Results for the Year Ended March 31, 2011 (FY 2010) 4-3. Consolidated Balance Sheets Real Property for Sale (including Advances Paid for Purchases) Total assets: JPY 3,780.6 bn Current assets Other 20.9 (3%) Cash and time deposits 929.1 Liabilities 57.2 (Billions of yen) 2,738.3 Interest-bearing debt 1,740.0 Real Property for 634.4 Sale (including Mitsui Fudosan 207.4 (33%) Mitsui Fudosan Residential Advances Paid for Purchases) 406.0 (64%) Equity investments in properties for sale Other current assets 65.7 Interest-Bearing Debt by Type & Maturity (B/S basis) Short-term debt, CP and bonds redeemable within one year 296.7 (17%) Long-term debt & SBs 1,443.3 (83%) 171.7 Fixed assets 2,851.5 Tangible and 2,252.2 intangible fixed assets Interest-Bearing Debt by Type (SBs, Bank Borrowings, CP) Market Value of Rental Properties (Billions of yen) At March 31, 2011 (FY2010 end) Market value Book value Difference 2,827.6 1,986.8 840.7 Deposits from tenants 354.8 (Rental properties) (1,986.8) Other liabilities 643.4 SBs 285.0 (16%) Market value 2,599.8 At March 31, 2010 (FY2009 end) Book value 1,845.8 Difference 753.9 Net assets 1,042.3 (Shareholders' equity) (1,019.9) Bank borrowings, CP Market value Investment securities 377.5 227.7 1,455.0 (84%) Year-on-Year Change Book Value 140.9 Difference 86.7 Lease deposits 171.5 Other fixed assets 50.1 Capital expenditures 229.3 Depreciation 52.9 24#334. Summary of Results for the Year Ended March 31, 2011 (FY 2010) 4-4. SPC Investments and Off-Balance-Sheet Debt Reference Assets for Property Sales Business: JPY 214 bn Total exposure: JPY 513 bn (Billions of yen) Assets 513 Debt 381 Assets to be valued up 52 Off-balance-sheet 381 debt Assets to be developed 162 Assets for holding 299 Equity Equity 132 investments in 99 66 property for sale On-balance-sheet investments 132 + Investment securities 66 99 ➤ Amounts on the right represent the total amount of assets, debt and equity corresponding to Mitsui Fudosan's equity share in each individual vehicle. Disclosure standards differ from those used for the "Guideline Applied to Disclosure of SPCS" presented since the year ended March 31, 2007. ➤ All figures are rounded off to the nearest billion yen. The categories "Assets to be valued up," "Assets to be developed," and "Assets for holding" conform to proprietary Mitsui Fudosan standards. 25#345. Forecast for the Year to March 2012 (FY 2011)#355. Forecast for the Year to March 2012 (FY 2011) 5-1. Consolidated Income Consolidated Income Statements Year to March 2012 Year Ended March 2011 (FY2011) (FY 2010) Change Forecast Actual Revenue Leasing 1,400.0 1,405.2 -5.2 424.0 423.4 0.5 Property sales Management Mitsui Home Other 370.0 405.2 -35.2 276.0 277.9 -1.9 226.0 205.1 20.8 104.0 93.4 10.5 Operating Income Leasing 115.0 120.0 -5.0 89.0 88.9 0.0 Property sales 17.0 16.1 0.8 Management 31.0 32.1 -1.1 Mitsui Home 4.8 3.7 1.0 Other -4.0 1.0 -5.0 Eliminations and corporate -22.8 -21.9 -0.8 Non-operating income -23.0 -23.8 0.8 Net interest expense -29.0 -27.2 -1.7 Other 6.0 3.3 2.6 Ordinary Income 92.0 96.2 -4.2 Extraordinary gains/losses -10.0 -12.5 2.5 Income before income taxes 82.0 83.6 -1.6 Income taxes 34.0 32.9 1.0 Minority taxes 1.0 0.8 0.2 Net Income 47.0 49.9 -2.9 26 26#365. Forecast for the Year to March 2012 (FY 2011) Financial Position 5-2. Financial Position, Property Sales to Individuals (Reference) (Billions of yen) Year to March 2012 (FY 2011) Forecast Year Ended March 2011 (FY 2010) Change Actual Real property for sale (including Advances Paid for Purchases) New acquisitions of real property for sale Cost recovery through property sales Tangible & intangible assets New investments Depreciation Interest-bearing debt Property Sales to Individuals (Reference) 300.0 280.0 130.0 55.0 1,820.0 300.9 -0.9 334.7 -54.7 229.3 -99.3 52.9 2.0 1,740.0 79.9 Year to March 2012 (FY 2011) Forecast Year Ended March 2011 (FY 2010) Change Actual Revenue from Operations Condomiums Detached housing 298.0 316.3 -18.3 247.0 266.0 -19.0 51.0 50.2 0.7 Operating margin (%) 3.2 3.1 0.1pt (Units) Reported Numbers of Units 5,900 6,380 -480 Condominiums 5,000 5,455 -455 Detached housing 900 925 -25 27#37Appendices (Market Trends)#38Appendix 1 Leasing Business Market Trends (Office Buildings) Office Vacancy Rate (%) 10.0 Mitsui Fudosan (Tokyo Metro/Parent basis) Central Tokyo 5 Wards, A Class (Source: CBRE) Central Tokyo 5 Wards (Souce: Miki Shoji) 8.8% 8.57% 8.0 6.0 40 4.0 2.0 (6/2003) (6,8/2003) 5.8% (9/2003) 2.49% (11/2007) 0.9% 0.9% 6/2006) (6/2007) 9.19% 8.92% (3/2011) (4/2011) 5.1% 5.1% (3/2011) (4/2011) 4.0% (3/2011) Source: Miki Shoji Co., Ltd., CB Richard Ellis 0.0 0.6% (7/2006) 3/2002 3/2003 3/2004 3/2005 3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 Trends of Supply Volume of Large-Scale Office Buildings within Tokyo's 23 Wards (Million m²) 2.5 2.0 1.5 1.0 0.99 0.5 52 0.0 88 98 Uncompleted Completed 2.16 Past supply volume (annual average) 1.02 million m²/year (total floor space) 1.54 1.25 1.21 1.19 0.91 0.72 0.77 0.36 99 00 01 02 03 04 05 4 90 0.86 0.85 0.65 1.37 1.54 Forecast supply volume after '11 (annual average) 0.96 million m²/year (total floor space) 0.79 0.65 Source: 0.45 Mori Building Co., Ltd. (As of December 31, 2010) (Calendar year) 28 06 07 08 09 10 11 12 13 14 15#39Appendix 1 Leasing Business Market Trends (Office Buildings) Market Conditions in the 5 Central Wards of Tokyo (Average Asking Rent & Vacancy Rate) (%) 10.0 3/2010 9.0 4/2011 日 8.0 3/2004 7.0 10/2004 (@17,526 yen 6.0 /month. tsubo) 3/20054 5.0 6,8/2003 (8.57%) 3/2003 3/2002 3/2009 4.0 3/2006 8/2008 (@22,901 yen /month. tsubo) 3.0 3/2008 3/2007 2.0 11/2007 (2.49%) 1.0 0.0 17,000 18,000 19,000 20,000 21,000 22,000 23,000 Source: Miki Shoji Co., Ltd. 24,000 (yen/month. tsubo) 29#40Appendix 2 Leasing Business Market Trends (Retail Facilities) Year-on-Year Change in Sales by Category 4% 0.3% 0.3% -0.0% -2.1% -0.7% 0% -2.1% -1.6% -1.7% -2.0% -0.5% -0.2% -0.7% 2.8% -2.8% -1.4% -1.5% -4.3% -4% -2.3% -2.6% -2.7% -3.2% -3.5% -2.6% -3.1% -4.3% -8% -6.8% General shopping centers Department stores Chain stores -12% 2002 2003 2004 2005 2006 2007 2008 -10.1% 2009 2010 (Calendar years) Source: Japan Department Stores Association, Japan Council of Shopping Centers, Japan Chain Stores Association Mitsui Fudosan: Year-on-Year Change in Sales by Type of Retail Facility 6% General shopping centers (market data) LaLaport (8 existing facilities) & Outlet parks (8 existing facilities) 2% -2.1% -2% 0.7% -2.2% -6% -4.2% -4.2% -6.0% -10% -7.7% -8.0% -14% 2009/1Q (4-6/2009) 2009/2Q (7-9/2009) 2009/3Q (10-12/2009) 2009/4Q (1-3/2010) 2010/1Q (4-6/2010) 2010/2Q (7-9/2010) 2010/3Q (10-12/2010) 2010/4Q (1-3/2011) Source: Japan Council of Shopping Centers 30 30#41Appendix 3 Property Sales Business Market Trends (Property Sales to Individuals) Metropolitan Tokyo Condominium Market: Initial Month Contract & Unsold Inventory 10 (Thousands of units) 12 Inventory (LHS) Initial month contract rate (RHS) Avg. initial contract rate for 2008: 62.7% Avg. initial contract rate for 2009: 69.7% Avg. initial contract rate for 2010: 78.4% (%) 100 82.8% (3/2010) 79.7% (3/2011) 90 76.0% (4/2011) 8 80 6 70 4 60 2 50 0 40 Source: Real Estate Economic Institute Co., 1/2004 7/2004 1/2005 7/2005 1/2006 7/2006 1/2007 7/2007 1/2008 7/2008 1/2009 7/2009 1/2010 7/2010 1/2011 4/2011 Ltd. Metropolitan Tokyo Condominium Market: New Units Launched and Average Price per Unit (Millions of yen) 75 85 50 46.6 (1.4%) 84 49.2 (5.5%) 74 51.5 (4.7%) (Thousands of units) New units launched (LHS) Avg. unit price Tokyo 23 wards (LHS) -Avg. unit price metro Tokyo (RHS) M 100 70 61.2 (18.9%) 59.3 (-3.1%) (YoY comparison in parentheses) 51.9 (-12.5%) 55.0 (5.9%) 60 50 50 60 60 61 44 45 25 25 41.0 (0.9%) 41.1 (0.1%) 42.0 (2.2%) 46.4 (10.6%) 36 47.8 (2.8%) 47.2 40 40 45.4 (-5.0%) (4.0%) 0 50 30 2004 2005 2006 2007 2008 2009 2010 (Calendar years) Source: Real Estate Economic Institute Co., Ltd. 31#42Appendix 4 Property Sales Business Market Trends (Property Sales to Investors) Acquisition of Assets by J-REITs & Tokyo Stock Exchange J-REIT Index (Billions of yen) 600 500 400 300 504.5 200 TSE J-REIT Index (excl. dividends)(RHS) Acquisition of assets by J-REITs (LHS) (Points) 1,800 1,600 1,400 1,200 Мила 1,000 800 600 239.5 100 197.5 166.9 108.4 52.1 35 35 82.6 228.9 140.4 101.7 73.4 400 229.4 200 0 0 2008 2008 2008 1Q 2Q 3Q 4Q 2008 2009 1Q 2Q 2009 2009 2009 3Q 4Q 2010 1Q 2010 2010 2010 2011 2Q 3Q 4Q 1Q (Calendar years) Source: Association for Real Estate Securitization 32#43Appendix 5 Shareholder Composition Shareholder Composition as of March 31 Individuals ■Financial Institutions ■Foreign Other companies, etc. 2011 6.1 35.6 48.3 10.0 2010 6.2 34.5 49.4 9.9 2009 6.3 37.0 47.3 9.4 2008 6.3 33.8 50.3 9.6 2007 6.4 36.7 47.8 8.8 2006 7.5 39.1 45.1 8.3 2005 9.3 45.7 37.6 7.5 2004 9.9 47.8 34.4 7.9 2003 10.9 52.9 29.1 7.1 2002 10.7 51.6 28.9 8.9 2001 10.9 49.0 30.2 9.9 2000 13.4 46.7 27.8 12.2 1999 11.5 52.2 25.1 11.3 1998 10.7 51.1 26.3 11.9 1997 11.9 48.8 25.6 13.7 1996 12.3 47.6 25.3 14.8 1995 13.5 50.1 19.8 16.6 1994 14.0 49.4 19.3 17.3 1993 14.7 48.3 19.1 17.9 1992 14.7 47.0 20.0 18.3 1991 16.1 48.1 15.2 20.6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 33#44Disclaimer This presentation contains forward-looking statements that are based on information available and our judgment when we issued the presentation, and are subject to risks and uncertainties. Actual results may differ from our forecasts depending on factors including changes in economic conditions, market trends and operating conditions. Although we exercised due care in preparing this presentation, we assume no obligation to update, revise or correct the statements and do not warrant their usefulness, suitability for a specific purpose, functionality or reliability. This presentation is not intended to solicit investment. Investment decisions should be based solely on the judgments of the investor. 34