Mitsui Fudosan Co., Ltd. · TSE:8801
Mitsui Fudosan — FY2009 Earnings Presentation
33 slides from Mitsui Fudosan's earnings presentation, May 10, 2010
Slide 1: Fiscal Year Ended March 2010 Earnings Announcement Presentation
Fiscal Year Ended March 2010 Earnings Announcement Presentation May 10, 2010 www.mitsuifudosan.co.jp/english
Slide 2: Contents
Contents 1．Performance Review （FY2007-FY2009） 2 2．Economic Conditions Outlook 3 3．Operating Environment Outlook 3 1 Office 3-1 Offi Building B ildi Leasing L i 4 3-2 Condominium Sales 5 3-3 Real Estate Investment Market 6 3-4 Existing Home Brokerage 7 4．Earnings Trends and Forecast 8 5．Measures for
Slide 3: Performance Review (FY2007-FY2009)
1. Performance Review （FY2007-FY2009） Abruptt changes Ab h iin th the external t l environment i t since i th the fi financial i l crisis i i off 2008 have significantly impacted results. May 2007: Long-term business plan New Challenge Plan 2016 announced Summer 2007: Subprime loan problems emer
Slide 4: Economic Conditions Outlook
2. Economic Conditions Outlook The global Th l b l and d Japanese J economies i have h begun b generating ti positive iti growth th and d should avoid a double-dip recession. Outlook for the global economy －Advanced economies stopped contracting in 2009 and are f forecast t to t expand d slowly l
Slide 5: Operating Environment Outlook – Office Building Leasing
3-1. Operating Environment Outlook – Office Building Leasing The rising vacancy rate in central Tokyo has moderated since summer 2009, but the increase continues. Although supply and demand trends require attention, positive signs include improved corporate earnings. Office Vacancy Rate (5 wards of
Slide 6: Operating Environment Outlook – Condominium Sales
3-2. Operating Environment Outlook – Condominium Sales Sales conditions are improving with economic recovery and government policies to support the housing market. Contract rates remain strong in metropolitan Tokyo, and unsold inventory is steadily trending downward. The market appears to have botto
Slide 7: Operating Environment Outlook – Real Estate Investment Market
3-3. Operating Environment Outlook – Real Estate Investment Market The autumn Th t 2009 establishment t bli h t off a reall estate t t market k t stabilization t bili ti fund f d has h led l d to t the th resumption ti off capital it l increases i through th h public bli offerings, investment corpor
Slide 8: Operating Environment Outlook – Existing Home Brokerage
3-4. Operating Environment Outlook – Existing Home Brokerage The market Th k t is i becoming b i stronger t as the th number b off people l interested i t t d in i buying b i existing properties continues to trend upward. Buyer Intensity (people interested in buying ÷ properties for sale) (Metropoli
Slide 9: Earnings Trends and Forecast
4. Earnings Trends and Forecast Results R l bottomed b d in i FY2009 andd FY2010, FY2010 and d Mi Mitsuii Fudosan F d is i now moving i toward the next phase of growth. (Billions of yen) (Billions of yen) Operating Income Holding Trading Management (to FY2009) Net income Leasing Property Sales Manag
Slide 10: Measures for the Next Phase of Growth
5. Measures for the Next Phase of Growth IIn moving i toward t d the th nextt phase h off growth, th Mitsui Mit i Fudosan F d will ill simultaneously i lt l implement defensive and offensive measures. Review,, strengthen g and re-engineer g each core business Response to maturity: business devel
Slide 11: Leasing Business (Office Buildings): Core Strengths
5-1-1. Leasing Business (Office Buildings) Office building development, leasing and management are core strengths Floor Space of Mitsui Fudosan Properties in 5 Wards of Central Tokyo (As of March 31, 2010)1 A portfolio tf li bbalanced l d among outstanding t t di central t l Tokyo locations Rede
Slide 12: Leasing Business (Office Buildings): Sustained Investment
5-1-1. Leasing Business (Office Buildings) Sustained investment in carefully selected projects Major Capital Expenditures FY2006 FY2007 FY2008 FY2009 FY2010 Former JFE Building (land & Former Mitsui Life Insurance Chiyoda Fujimi 2-Chome Project Sumitomo Mitsui Banking building) Otemachi Building (la
Slide 13: Leasing Business (Office Buildings): Portfolio Improvement
5-1-1. Leasing Business (Office Buildings) We deploy our development capabilities to continuously improve our portfolio. Major Newly Operational Projects Office Buildings by Year of Completion Completion* FY Project Name Location Rentable Floor March 31, 2003 March 31, 2010 Completed Space Sumitomo
Slide 14: Leasing Business (Retail Facilities)
5-1-2. Leasing Business (Retail Facilities) Strength in retail facility development, leasing and management Retail Facility Categories St Strong retail t il facility f ilit managementt ttrack k record d 9 Retail facility management experience spanning approximately 30 years A superior developer
Slide 15: Retail Facilities: Concentrated, Sustained Investment
5-1-2. Leasing Business (Retail Facilities) Concentrated, sustained investment in competitive facilities Major j Newly y Operational p Projects j FY Project Name Store floor Location Opened （* indicates subleased or jointly owned property） space 2009 LaLaport Iwata Iwata, Shizuoka ≈ 50,000 ㎡ LaLapor
Slide 16: Property Sales to Individuals: High-Value-Added Properties
5-1-3. Property Sales Business (Property Sales to Individuals) Consistent strength in high-value-added properties We have further differentiated our brands by enhancing our products Strength in high-value-added properties consistently supports operations We constantly acquire new land for deve
Slide 17: Property Sales to Individuals: Competitive Products
5-1-3. Property Sales Business (Property Sales to Individuals) Competitive products primarily in metropolitan Tokyo Major Projects Condominium Brand Lineup FY Total Units (Mitsui Small-scale Property Name Location condominium Booked Fudosan Share) properties with short sales 2009 Park Court Akasaka
Slide 18: Property Sales to Investors: J-REIT Market
5-1-4. Property Sales Business (Property Sales to Investors) J-REIT J REIT market: k t various i measures and d the th establishment t bli h t off a reall estate t t market k t stabilization fund have accelerated the trend toward recovery Since autumn 2009, institutional reform and measures to stren
Slide 19: Property Sales to Investors: Inventory and Model
5-1-4. Property Sales Business (Property Sales to Investors) Mitsuii Fudosan Mit F d is i keeping k i an eye on recovery in i the th reall estate t t investment i t t market k t while moving forward with current projects Inventory of Properties for Sale to Investors* A model for growing in cooperati
Slide 20: Management Business (Brokerage)
5-1-5. Management Business (Brokerage) The Rehouse Th R h network t k in i the th Tokyo T k metropolitan t lit area has h been b re-engineered, i d and residential brokerage is robust Re-engineering of the brokerage business (Mitsui Rehouse affiliates) Recovery of residential brokerage Full-sc
Slide 21: Management Business (Property Management)
5-1-6. Management Business (Property Management) Fee income based on stable property management Property Management Business Results Revenue from operations (LHS) Tenant improvements Operating income (RHS) (Billions of yen) Property management (Billions of yen) 2002 2003 2004 2005 2006 2007 2008 200
Slide 22: Response to Maturity & Globalization
5-2-1. Response to Maturity & Globalization Mitsuii Fudosan Mit F d is i innovating i ti its it business b i model d l by b taking t ki the th perspective ti off customers regarding accelerating structural socioeconomic changes Structural Socioeconomic Changes Mitsui Fudosan Group Responses Maturity
Slide 23: Response to Maturity
5-2-2. Response to Maturity We are anticipating W ti i ti customer t needs d resulting lti from f maturing t i markets k t in i developing a new business model Housing Business Model Mitsui Fudosan Mitsui Real Estate Sales Residential (Mitsui Rehouse) Existing home Mitsui Home New home sales Mitsui
Slide 24: Response to Globalization
5-3. Response to Globalization Mitsuii F Mit Fudosan d h has finalized fi li d a pilot il t project j t to t participate ti i t ini China Chi and d other th dynamic East Asian areas Advance into ● Tokyo ● East Asia ● London Shanghai (Mitsui Fudosan (U.K.) Ltd.) (Mitsui Fudosan (Shanghai) ● Consultin
Slide 25: Response to Globalization: Ningbo and Shanghai Projects
5-3. Response to Globalization Mitsuii Fudosan Mit F d is i approaching hi markets k t prudently, d tl formulating f l ti risk i k managementt strategies while using its strengths to accumulate expertise Ningbo g Outlet Project j Shanghai g Ma Lu Project j April 2010: Construction started February 2
Slide 26: Maintaining a Sound Financial Structure
5-4. Maintaining a Sound Financial Structure We will W ill maintain i t i a sound d financial fi i l structure t t and d our ability bilit to t invest i t in i growth th opportunities Interest-Bearing Debt and Off-Balance-Sheet Debt, Debt D/E Ratio at Fiscal Year End (Billions of yen) (Times) 2,000
Slide 27: Environmental Initiatives
6. Environmental Initiatives communicates the environmental stance of the Mitsui Fudosan Group Message To build a town is to build a part of our Earth. I ’ to build It’s b ild the h ffuture off our world. ld That’s why Mitsui Fudosan Group thinks of Earth when we think of you. Tokyo Midtown We imagi
Slide 28: Initiating the Next Phase of Growth
7. Initiating the Next Phase of Growth Quickly complete crisis response and initiate the next phase of growth Review, strengthen and re-engineer each core business Response to maturity: business development that accommodates g changes accelerating g in the domestic market environment Response
Slide 29: Appendices
Appendices 28
Slide 30: Appendix 1: Mitsui Fudosan Group Assets under Management
Appendix 1: Mitsui Fudosan Group Assets under Management Assets under Management (Trillions of yen) 29
Slide 31: Appendix 2: SPC Investments and Off-Balance-Sheet Debt
Appendix 2: SPC Investments and Off-Balance-Sheet Debt (At March 31, 2010) Total exposure: 548.0 billion yen (Billi (Billions off yen)) Assets 548.0 Debt 410.0 Assets to be 65.0 Off-balance-sheet 410.0 valued up debt Assets A t for f Assets to be 173.0 Trading Business: developed 238.0 billion yen A
Slide 32: Appendix 3: Operating Income by Segment
Appendix 3: Operating Income by Segment Accounting Segments CP2016 Segments (Billions of yen) FY09 FY09 Holding Leasing 99.7 Holding 0,89.8 (Office/Retail) Holding Business: Master-leased Masterleased Leasing of office and retail properties Office/Retail properties in 2001 or prior Masterleased in 2
Slide 33: Disclaimer
Disclaimer 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 uncertainties. Actual results may differ from our forecasts depending on factors including changes g i