INTEGRATEDREPORT2018

Fiscal year ended March 31, 2018

Editorial
PolicyThis report contains figures related to the future, which are included inresults forecasts and so forth. These are based on judgements madeusing information obtained at the time of publication, and thus containrisks and uncertainties. Furthermore, Mitsui Fudosan makes no guaranteethat these forecasts will be realized. Therefore, you should not rely onthese forecasts alone when making investment decisions. You should beaware that business results arise through various important factors andactual results may vary greatly from forecasts. Important factors
influencing actual results include the economic situation encompassing
the Group’s business domains, foreign currency exchange rates including
yen-U.S. dollar cross rate, and the Japanese share market.

Statement/ Vision/ Mission
The History of the Mitsui Fudosan Group
The Mitsui Fudosan Group in the Present Day
Our Value Creation
ESG Management
Feature: Creating Mixed-Use Neighborhoods
Premium Assets

21 Vision and Strategy
21 Top Message
Long-Term Vision "VISION 2025"

29 Business Report
30
37
41
43
44
45

Business Report

Caution Concerning Forward-Looking Statements

03
05
07
09
11
13
17

Vision and Strategy

This report is based primarily on figures disclosed in
the Annual Securities Report and the Fact Book. Since
the figures are rounded down to the nearest whole unit
displayed, they may not necessarily match with thefigures in the English language financial statements andnotes, which are rounded up or down to the nearest unit.

03 Corporate Profile

Leasing
Property SalesManagement
Mitsui Home
Other
Topics: Overseas Business

Creation (Mitsui's CSR)

Initiatives for the Environment
Initiatives for Quality
Initiatives for Creating New Values and Markets
Social Contribution Activities
Human Resource Management
Corporate GovernanceManagement Team

69
71
77
79
83
About the Photos on the Cover and This Page

Data Section

69 Data Section
Performance Highlights
Financial Analysis
Strategic Investment Shareholdings
Major Properties
Corporate Data/Shareholders’ Information
About the Website

The photos show TOKYO MIDTOWN HIBIYA, which was completed in
February 2018. This project played a central role in creating an urbanneighborhood for international business and art and culture in the Hibiya
area, and aimed to create a neighborhood that provides people withhigh-quality times through methods including supporting new businesscreation and delivering art and culture in partnership with local theaters
and cinemas. (For details, see P.13-16)

01

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

Foundation for Value Creation

47 Foundation for Value
48
49
51
53
55
59
65

Corporate Profile

For stakeholders, including shareholders and investors,
to gain a correct understanding of the complete picture
concerning the Mitsui Fudosan Group’s management
strategy and corporate activities, in addition to financial
information such as financial results, review ofoperations and management strategies, it is also
important to gain a systematic understanding of
non-financial information relating to aspects such associety, the environment, human resources andgovernance. Based on this belief, our Annual Reportfeatures enhanced and integrated non-financial
information. In editing the report, we referred to theInternational Integrated Reporting Framework ver 1.0,
which was published by the International Integrated
Reporting Council (IIRC) in December 2013. Moreover,the Group’s activities have been selected and included
based on their importance for stakeholders. For more
information, please refer to the website and various
other forms of communication issued.

Contents

02

GROUP VISION
What we want to be

Corporate Profile

Philosophy
Seeking to link diverse values and coexist in harmony with society, as symbolized by the
Mitsui Fudosan “” logo, we will work to foster social and economic development aswell as global environmental preservation.
—Under “,” we will aim for a society that enriches both people and the planet.

Evolution and value creation
By bringing knowledge and experience together in diverse ways, we seek to advance thereal estate business and create new value, both at home and abroad, proactively
responding to global changes in social environments and market structures.
Vision and Strategy

A profitable and growing Mitsui Fudosan GroupWe seek to create a profitable and growing Mitsui Fudosan Group, acting honestly andfairly to realize the capabilities of the entire organization.

GROUP STATEMENT

What is expected of us

Provide business and lifestyle-related solutions and services•Maximize urban value creation by providing secure, safe and attractive urban spaces andsoft services that bring enrichment and comfort to urban living•Provide variable and innovative solutions that stimulate the real estate investment market
Work in partnership with customers from a global perspective•Treat customers as the business foundation on which to progress and develop the Company•Propose and provide products and services by deploying the collaborative strength of
the Group with a multidisciplinary approach that meets the real needs of customers•Work in partnership with customers to raise brand value by continuously providing

Foundation for Value Creation

The Group Statement, Vision, and Mission embody theGroup management’s basic philosophy and its vision for
the future. Since their formulation in 1999, they haveguided the Mitsui Fudosan Group as an integrated
management policy.

GROUP MISSION
Business Report

The Mitsui Fudosan Group aims
to bring afﬂuence and comfort tourban living.

services that are highly valued by themRaise our corporate value•Raise corporate value through sustainable profit growth and continual innovation•Optimize the allocation and use of available resources and pursue efficient operations•Conduct operations while closely monitoring and managing business risks
Create strong corporate group by building thecapabilities of individuals

Data Section•Seek to maintain a creative and pioneering spirit by integrating various skills and values•Cultivate and institutionalize the professional capabilities of individuals to raise ourcreative ability for value-added products and services
Maintain high awareness of ethical, disciplinary, and compliance issues, and act accordingly•

03

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

04

The History of the Mitsui Fudosan Group

The Mitsui Fudosan Group’s Roots

Mitsui Fudosan has its origins in Echigo-ya, a clothing store opened in 1673 in what is now the
Nihonbashi district of Tokyo. In 1941, the real estate division of Mitsui Company was separated
from the parent and Mitsui Fudosan Co., Ltd. was established.
Through multiple transitions in the Japanese economy and real estate markets,
Mitsui Fudosan has always created new value that brings affluence and comfort to urban living.

1941 (Founding) – 1970 –Business foundation establishedduring a period of rapid economic
growthJapan’s first skyscraper

1929

LaLaport TOKYO-BAY

Advancing mixed-use neighborhood
creation amid market maturity

Creating Mixed-Use Neighborhoods Fusing an Array of Functions

MITSUI OUTLET PARK OSAKA TSURUMI

2004 –

1995

1981

LaLaport TOKYO-BAY
opens for businessNihonbashi Revitalization Plan begins

MITSUI OUTLET PARKOSAKA TSURUMI
opens for business

1971

Construction of the entire
Okawabata River City 21,
West Block completed

Hotels& Resorts

1999

1984

TOKYO MIDTOWN opens for business

Model for Joint
Value Creation
with Investors
Okawabata River City 21, West Block

2001

Nippon Building Fund Inc.
listed on the Tokyo Stock
Exchange

2015

Construction of all buildings ofPark City OSAKI completed

Logistics
Facilities

Japan’s first domestic J-REIT

A pioneering tower condominium
building overlooking Tokyo Bay

Mitsui Garden Hotel
Osaka Yodoyabashi

2007

2004

Frontier Real Estate
Investment Corporation
listed on the Tokyo Stock
Exchange

2018

TOKYO MIDTOWN HIBIYA opens
for business

Foundation for Value Creation

Construction of Gate City Osaki
completed

Mitsui Garden Hotel
Osaka Yodoyabashi
opens for business

A pioneering tower condominium
building

Mita Tsunamachi Park Mansion

2014

Kashiwa-no-ha Smart City opens for business

1993

Construction of Mita Tsunamachi
Park Mansion completed

Mitsui Main Building

2014

Construction of Mitsui Fudosan
Logistics Park Yashio completed

2006

2016

Nippon Accommodation
Fund listed on the Tokyo
Stock Exchange

Mitsui Fudosan Logistics
Park, Inc. listed on the Tokyo
Stock Exchange

2013

Late 1950s –Construction of Mitsui Fudosan Oita Solar Power
Plant and Mitsui Fudosan Sanyo-Onoda Solar
Power Plant completed

Keiyo Rinkai reclamation project begins

Data Section

Other

Asset deflation convergence andadvancing neighborhood creation

Construction of
Kasumigaseki Building
completed

Housing

Keiyo Rinkai reclamation project2010 –

2000 –

1968

RetailProperties

Contributing to infrastructuredevelopment for the Tokyo metropolitan area

Japan’s first genuine outlet mall

Echigo-ya in Nihonbashi during the Edo period(Picture from the Mitsui Memorial Museum collection)

Business Report

Construction of Mitsui
Main Building
completed

Rebuilt business during the period of
deflation following the collapse of Japan’s
economic bubble

A pioneering shopping center

Kasumigaseki Building

Ofﬁce Buildings

1990 –

Takatoshi Mitsui, the Company’s founder(Photo provided by Mitsui Bunko)

Vision and Strategy

Moved to diversify management toachieve stable growth

Corporate Profile

Around 340 years ago, Takatoshi Mitsui founded Echigo-ya, a clothing store in
the Nihonbashi district of old Edo. The store’s business developed rapidly basedon the groundbreaking business philosophy of “cash only and fixed, low prices.”
This spirit of enterprise and focus on customers continues within the Mitsui
Fudosan Group today. Echigo-ya’s business continued to expand and it
developed into Mitsui Company. In 1941, Mitsui Company’s Real Estate Division,
which managed the real estate held by the company, was spun off and became
Mitsui Fudosan Co., Ltd.

Overseas Development from the early 1970s Onward
Since the early 1970s, Mitsui Fudosan has been developing various
businesses in locations around the world. In recent years, it has been
leveraging neighborhood creation expertise cultivated in Japan toaccelerate overseas development, including the launching of outlet
malls in Malaysia and Taiwan, and participation in urban development
projects in London and New York.

05

Mitsui Fudosan Co., Ltd.

1984
HALEKULANI (Hawaii) opens for business

1986
1251 Avenue of the Americas (New York) acquired

2008
St. Regis Hotel & Residences
2014(Singapore) opens for business Construction of 1200 17th Street(Washington D.C.) completed

2015
MITSUI OUTLET PARK KLIA SEPANG opens for business

2016
MITSUI OUTLET PARK LINKOU opens for business2017
Construction of 1 Angel Court (London)
completed

Mitsui Fudosan Co., Ltd.

06

As one of Japan’s leading real estate companies,
the Mitsui Fudosan Group has expanded its business across a broad swath of the real estate industry.
Going forward, we will continue to advance businesswith the aim of creating a profitable and growing Mitsui Fudosan Group.
* To explain the Mitsui Fudosan Group’s business expansion more understandably, we use business domains that are different from the financial reporting segments in this table.
For a breakdown of our business by financial reporting segment, please refer to “Business Report” “Breakdown of Businesses by Reporting Segment” on page 29 of this report.

Results (As of March 31, 2018)
Revenue from operations¥245.9 billion

Profit attributable to owners of parent¥155.8 billion

Retail Properties

Hotels & Resorts

Other

Main Data

Main Group Subsidiaries

Rentable floor space*1

2,909 thousand m

2

Number of tenants

Overseas

U.S., U.K.

Japan

Major cities nationwide

Approx.

3,000 companies

Rentable floor space*12,116 thousand m

2

Number of tenants

2,300 companies

Overseas

China, Taiwan, Malaysia

Japan

Major cities nationwide

By providing the full range of development sales, and post-sale services, we offer quality
and products that meet the needs of our customers. By taking advantage of thecomprehensive strengths of the Mitsui Fudosan Group, we continue to expand into areas
such as new home construction contracting, and existing housing stock businesses
including sales and remodeling.

Overseas

U.S., U.K., China, Malaysia,
Singapore, Thailand,
Indonesia, Philippines

Number of detached housing
units delivered

Providing appropriate spaces and services for each of our customers

Japan

Nationwide

Mitsui Garden Hotels

Overseas

U.S. (Hawaii), Singapore

Japan

Tokyo metropolitan area,
Nagoya metropolitan area,
Osaka metropolitan area,
Kyushu area and other areas

Overseas

——

Japan

Major cities nationwide

Overseas

U.S., U.K.

Japan

Nationwide

Overseas——

Best Partner for Homes and Living

Guided by the brand statement “creating new destinations,” Mitsui Fudosan is dedicatedto creating times and spaces worthy of being called “destinations” for customers, andoperates a hotel business with Mitsui Garden Hotels and THE CELESTINE HOTELS inlocations around Japan, and a resort business designed to answer the leisure needs of ourcustomers.

Development of advanced logistics facilities to respond to diversifying values
Backed by our mission statement of “tomoni, tsunagu. tomoni, umidasu (connecting
values together with customers and creating new values together with customers),”
Mitsui Fudosan has been leveraging its strong relationships with office and retail tenants
while continuing to steadily expand this business since 2012.

Contributing to growth in the real estate investment market

Mitsui Fudosan is also active in sales to investors, involving the development and sale ofoffice buildings, retail properties, rental housing and other income properties. The Groupis not only working to contribute to the expansion of the real estate investment market,
but to expand its own corporate earnings by offering post-sale asset management andother services.

A wide-ranging real estate solutions business

To provide office and retail property tenants and other originators with a wide range ofsolutions, Mitsui Fudosan is engaged in a variety of real estate-related businesses.

Approx.

Number of
Number of
condominiums delivered brokerage properties

3,707 units

40,658 sales

501 units

23 hotels
5,841 rooms

Number of project facilities*2

28 facilities

Mitsui Fudosan Group assets
under management

3.73 trillion

Approx. ¥Number of parking units managed by Mitsui Repark

226,125 spaces

Mega-solar business sites/amount generated

5 sites /Approx. 72 MW* All figures are as of the end of March 2018.

07

Mitsui Fudosan Co., Ltd.

Mitsui Rehouse

Data Section

Model for Joint
Value Creation
with Investors

We seek a new form of retail property that is rooted in the local community and we growthem together with our customers. Under the “growing together” concept, we areworking to develop a wide variety of retail properties specifically designed for regions andcommunities in Japan and overseas.

¥6,301.2 billion

Foundation for Value Creation

Logistics
Facilities

Creating properties that grow with the city and people– places where people gather to relax

Major cities nationwide

Balance of
total assets

Business Report

Housing

Under the slogan “Beyond the office,” we continue to create ideal Mitsui offices, both athome and overseas. By reaching beyond the boundaries of traditional concepts of officedesign, we build offices that provide “sustainability and safety,” “amenities andefficiency,” and “expansion and innovation” to the individuals and companies that work orgather in them.

Japan

84.1%

Vision and Strategy

Ofﬁce Buildings

Beyond the office

Domestic

15.9%¥1,751.1 billion

Operating income

Business Area

Overseas

Corporate Profile

The Mitsui Fudosan Group in the Present Day

Mitsui Car Park Leasing*1 Rentable floor space includes subleased areas.

*2 Includes existing facilities and facilities under development.

Mitsui Fudosan Co., Ltd.

08

Our Value Creation

Business Achievements
Financial capital
Earnings expansion

Profit and earnings per share (EPS) expansion
Profit attributable to owners of parent and EPS

Revenue from operations(Billions of yen)

Profit attributable to owners of parent (left axis)(Billions of yen)

1,751.1

2,000

500

Total assets: ¥6.3 trillion
Equity ratio: 35.0%

D/E ratio: 1.18 times

Manufacturing capital

2013

2014

2015

2016

●A constant spirit of innovation●Advanced development andnegotiation skills as evidenced
by redevelopment projects

Leveraging the Group’s
Collective Capabilities to
Maximize Neighborhood Value¥3.3 trillion

Real property for sale:¥1.5 trillion

Ofﬁce Buildings

RetailProperties

Hotels& Resorts

Logistics
Facilities

Operation

based on Mitsui Fudosan’s
own sales team●Broad customer base in theproperty sales business●The track record and reliability
that comes from being No. 1
in Japan for the number ofbrokerage properties
nationwide for the 32ndconsecutive year

●Group collaboration offers

superior-quality facility
management capabilities●Designed to get better with age●Strong track record regarding
smart cities

ESG Management

Approx. 3,000

Retail property tenants:

Approx. 2,300

Priority Goals
Establish ultra-smart societies by creating neighborhoods● Achieve a society where a diverse workforce can thrive● Achieve health, safety and security in people’s daily lives● Create new industries through open innovation● Reduce environmental impact and generate energy● Continuously improve compliance and governance●(energy, materials, etc.)

09

Mitsui Fudosan Co., Ltd.

30

4.6

4

40

35.0

20

2

2012

2013

2014

2015

2016

2017

(FY)

40
30
20

10

0

(%)

10

2012

0

2013

2014

2015

2016

2017

(FY)

0

ROA = (Operating income + Non-operating income)/Average total assets over the period
ROE = Profit attributable to owners of parent/Average shareholders’ equity over the period

Intellectual capital
Track record of neighborhood
creation

Nihonbashi
The number one desired
area for new rentals*Data released by Mori Building Co.,
Ltd. in December 2017

Manufacturing capital

Human capital

Accumulation of quality leased assets

Securing and nurturing diverse
human resources

Rental property book value, market value and the differenceMarket value (left axis)

Book value (left axis)

Number of Group employees

Difference (right axis)(Billions of yen)(Billions of yen)

3,000

6,000
5,000

2,475.4

3,000
2,000

2,000
1,500

Mitsui Fudosan

18,62520,000

Number one in rankingsof companies preferredby jobseekers

15,000*Career + rankings by industry(Construction, housing, and real estate)

1,000

1,000
0

(Number of people)

2,500

4,000

500

2010

2011

2012

2013

2014

2015

Improving company
evaluations

2016

2017

(FY)

0

0 2015

2016

2017

(FY)

Social capital

Natural capital

Creating a wide range of channels for connecting with customers

Developing buildings with exceptional environmental performance

Office tenants: approx. 3,000 companies
Retail property tenants: approx. 2,300 companies
Mitsui Shopping Park Card members: approx. 2.5 million
Mitsui Housing Loop members: approx. 180,000
Link-J members: over 230 companies *As of June 2018
31VENTURES members: over 400 *As of June 2018

Facilities recognized as Outstanding Specified Anti-Global
Warming Facilities

Data Section

Office tenants:(FY) 02017

Foundation for Value Creation

Sales●Strong leasing capabilities

2016

40

Mitsui Rehouse

Model for Joint
Value Creation
with Investors

2015

Total shareholder return ratio (right axis)

Various brands boasting strong name recognition

Extensive customer base

Limited natural resources

(Yen)

7.4

Housing

Social capital

Natural capital

2014

Mitsui Car Park Leasing

Expertise in large-scaleneighborhood creation
Products offering strong
brand recognition

Consolidated headcount: 18,625

2013

Annual dividend per share (left axis)

Intellectual capital

Diverse human resources

2012

Shareholder return enhancements

8●Optimal concept creation

40

0Annual dividend per share and total shareholder return ratio

6

growth potential●The ability to offer solutions as anintegrated developer●Solid financial foundations and agile
responsiveness to investment
opportunities

80

(FY)

ROE

(%)

●Insight for identifying locations with

Tangible and intangible assets:

Human capital

2017

Business efficiency improvements

Development

120

80

Business ReportHigh quality real estate
asset stock

2012

ROA/ROE
ROA

Securing business
opportunities

160

120

Vision and Strategy

Solid financial position

200

40

0

Business Activity

(Yen)

155.8

160

1,000

Assets Invested

EPS (right axis)

200

1,500

* All figures on this page are current as of the end of March 2018.

Financial capital

Corporate Profile

As a comprehensive real estate company that oversees all aspects of real estate business,from securing business opportunities through to development, sales and management,
the Mitsui Fudosan Group is leveraging its varied business expertise
concerning office buildings, retail properties, housing, and hotels to advance the creation of neighborhoods.
We will utilize the resources we have cultivated through long years of business to continue
raising the value of neighborhoods for people and communities and continuously enhance corporate value.

Top-level facilities: seven
Semi top-level facilities: six

Mitsui Fudosan Co., Ltd.

10

Corporate Profile

ESG Management
In order to realize continuous value creation, the Mitsui Fudosan Group has positioned
ESG (Environment, Society, and Governance) as a key management issue, and established six priority goals for the areain the Group’s VISION 2025 long-term vision formulated in May 2018.
By further evolving neighborhood creation through the pursuit of these goals,
the Group aims to achieve a sustainable society and drive sustainable profit growth.

Vision and Strategy

Priority Goals
Establish ultra-smart societies
by creating neighborhoods

Create communities closely
tied to localities and promote
high-quality town
management

Achieve health, safety and security
in people’s daily lives

Drive evolution in thecreation of neighborhoods

Create new industries through open innovation

Proactively harness newtechnologies to develop
smart cities that serve as
platforms for ultra-smart
societies

Enable affluent

Ourand comfortable
aspirations
lifestyles
in the creationof neighborhoods

Createnew industries

Enjoyable
for visitors

Sustainableprofit growthFoundation for Value Creation

Reduce environmental impact
and generate energy

Our Value Creation

Comfortable
and healthy
lifestyles
for residents

Business Report

Achieve a society where a diverse
workforce can thrive

Sustainable
society

Improve theproductivityof workers

Continuously improve complianceand governance

Data Section

Approach to SDGs and Society 5.0
The Sustainable Development Goals (SDGs) were adopted at a
UN summit in September 2015 and officially came into effect inJanuary 2016. The SDGs are universal goals, to be pursued bydeveloping countries and developed countries alike.
Since 1999, when the Mitsui Fudosan Group adopted theGroup Statement of “The Mitsui Fudosan Group aims to bringaffluence and comfort to urban living” as its basic philosophy, it
has contributed to the realization of sustainable societies
through its corporate activities, especially neighborhood

11

Mitsui Fudosan Co., Ltd.

creation. Going forward, the Group will contribute to achieving
the SDGs by working toward its six priority goals. Also, inJapan, the Group is also aiming to realize an ultra-smart society
based on the 5th Science and Technology Basic Plan forwarded
by the Japanese government. This societal transformation
driven by innovation has been named “Society 5.0,” and the
Mitsui Fudosan Group will utilize technology to the utmost to
innovate the real estate business and contribute to therealization of an ultra-smart society.

Mitsui Fudosan Co., Ltd.

12

Feature Creating Mixed-Use Neighborhoods
Maintain the Hibiya district’s history and foster international business, art, and culture that isalways ahead of the times to “create new future-oriented experiences and value”
Values Shared by TOKYO MIDTOWNSDiversity

To be open to everyone and include
a wide range of values

Hospitality

To value elegance throughsophisticated hospitality

Creativity

To be cutting edge in various fields andcreate innovative new movements

Sustainability

To take advantage of the environment
and its surroundings, and to be partof the evolution of the town

Values Unique to TOKYO MIDTOWN HIBIYA

In The Park

A town that enriches the heartwith green and open spaces

Entertainment

A city that offers new art, culture,and entertainment

Elegance

A city full of cultural stimulus thatgathers people that appreciate
originality

Vision and Strategy

Mitsui Fudosan works to create neighborhoods that put people first
while still preserving the history and culture of each area.
This cutting-edge approach can be seen in TOKYO MIDTOWN HIBIYA, which opened in spring 2018.
The building shares the vision of TOKYO MIDTOWN in Roppongiof communicating “Japanese value” to the world, while also creating its own new value.

Corporate Profile

Preserving History and Culture While
Creating New Value —The Birth of TOKYO MIDTOWN HIBIYAThe Concept Behind TOKYO MIDTOWN HIBIYA

Business Report
Foundation for Value Creation
Data Section

Hibiya — A Neighborhood
That Deﬁnes the Times
In Hibiya, you can see the Rokumeikan, a popular social
gathering place for foreign traders and diplomats createdduring the Meiji period, alongside the Imperial Hotel,
which was created as Japan’s first guest house for foreigndignitaries. These historic sites were important elementsin evolving the neighborhood to increase its appeal.

Rokumeikan (photo: The National Diet Library) The Imperial Hotel

13

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

14

Feature Creating Mixed-Use Neighborhoods

Floor Guide

11-34F
9-10F
8-9F
6F
1-2F
B1F-7F
B1F

Office floors
Sky Lobby and Sky Garden
Hibiya Mitsui Conference
Business creation hub BASE Q,
Park View Garden
Hibiya Step Square
Retail floors(4-5F – TOHO Cinemas Hibiya)
Hibiya Arcade

Ofﬁce Floors
The office floors comprise around3,300m2 of spacious, flexible-layout
office space offering incredible views.
The Sky Lobby on the ninth floor
contains third place spaces that can beused by tenants and visitors, such as the
Sky Lounge, featuring a café andconvenience store, and the Sky Garden,
which can be used for events.

Retail Area
The seventh floor to the basement firstfloor comprises retail space containing
approximately 18,000m2 of shop floor
space based on the concept of “THE
PREMIUM TIME, HIBIYA.” Furthermore,Park View Garden on the sixth floor
provides a space for visitors to enjoy the
combination of abundant plant life,
scenic water features, and a view of themagnificent greenery of Hibiya Park
below.

The women-only powder room

A convenience store

The fitness center

Sky Garden

The atrium

A fitness center has been provided for
exclusive use by office workers. There arealso facilities that support a variety ofworking styles, such as shower rooms andlocker rooms that are perfect for joggers,
and a women-only powder room.

A café terrace+

60Stores launching in Japanfor the first time:5
15
New business categories: 22

Business Report

Worker Services

TOHO Cinemas Hibiya

Retail stores:

Sky Lobby
Vision and Strategy

TOKYO MIDTOWN HIBIYA was founded on theconcept of leveraging the Hibiya district’s historyof continuous era-defining evolution to “create
new future-oriented experiences and value.”
This saw the implementation of mixed-use
neighborhood creation that brought together
office and commercial functions.

Corporate Profile

Leveraging Hibiya’s Unique Characteristics to Fuse Business,
Art and Culture, and the Natural Environment

The Cinema floor

Hibiya ArcadePark View Garden

Foundation for Value Creation

BASE Q — An Open Environment for Accelerating Business Creation

Stores launching in a retailproperty for the first time:

BASE Q has been established as a hub for people aiming to create new value andsolve social issues, such as venture companies, NPOs, individuals responsible fornew business at major companies, and creatives. It also provides a venue foroccasional events that offer a cutting-edge, horizontally-focused perspective, suchas collaborations bringing together partners from different fields. As part of this,Mitsui Fudosan, Dentsu Inc., and EY Japan have partnered to launch theInnovation Building Program. This program supports open innovation, which iscurrently attracting attention as a means for major companies to realize thecultivation of new business areas.

Data Section

Lounge15

Mitsui Fudosan Co., Ltd.

CaféStudioHall

KitchenMitsui Fudosan Co., Ltd.

16

Premium Assets
Corporate Profile

Mixed-Use Projects

Nihonbashi Mitsui Tower

Nihonbashi 1-Chome Mitsui Building

Kasumigaseki Building

Gran Tokyo North Tower

Sumitomo Mitsui Banking Corporation Head Office Building

Muromachi Higashi Mitsui Building

Muromachi Furukawa Mitsui Building

Muromachi Chibagin Mitsui Building

Nihonbashi Astellas Mitsui Building

Shinjuku Mitsui Building

Ginza Mitsui Building

Jimbocho Mitsui Building

Shiodome City Center

Aoyama OM-SQUARE

Nakanoshima Mitsui Building

Yokohama Mitsui Building

Kashiwa-no-ha Smart City

msb Tamachi

Business Report

TOKYO MIDTOWN HIBIYA

Vision and Strategy

Nihonbashi Revitalization PlanTOKYO MIDTOWN

Ofﬁce Buildings (Domestic)

Marunouchi Mitsui Building

Iidabashi Grand Bloom

Yodoyabashi Mitsui Building

Sapporo Mitsui JP Building

Data Section

Mitsui Main Building

Foundation for Value Creation

Gate City Osaki

17

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

18

Retail Properties

Hotels & Resorts

LaLaport

HOTEL THE CELESTINE
GINZA

Mitsui Garden Hotel
Kyobashi

Mitsui Garden Hotel
Nagoya Premier

Mitsui Garden Hotel Nihonbashi Premier
Vision and Strategy

LaLaport YOKOHAMAHOTEL THE CELESTINE KYOTO GION

Urban Dock LaLaport TOYOSU

LaLaport TOKYO-BAY

Mitsui Garden Hotel
Ginza Premier

LAZONA Kawasaki plaza

HOTEL THE CELESTINE TOKYO SHIBA

Corporate Profile

EXPOCITY

Mitsui Garden Hotel Kyoto Shinmachi Bettei

LaLaport IZUMIDiverCity Tokyo Plaza

Lifestyle Park

AMANEMU

LaLaport FUJIMI

LaLaport EBINA

LaLaport SHONAN HIRATSUKA

HAIMURUBUSHI

Overseas

LaLagarden KAWAGUCHIBusiness Report

MITSUI OUTLET PARKMITSUI OUTLET PARK SHIGA RYUO MITSUI OUTLET PARKHOKURIKU OYABEMITSUI OUTLET PARKJAZZ DREAM NAGASHIMAMITSUI OUTLET PARKSAPPORO KITAHIROSHIMA

160 Madison Avenue(New York)MITSUI OUTLET PARK KISARAZU

70 Mark Lane
(London)

5 Hanover Square (London)

8-10 Moorgate (London)

Mitsui Shopping Park Urban

Homer Building(Washington D.C.)

525 West 52nd Street(New York)

COREDO Nihonbashi

COREDO Muromachi

TOKYO MIDTOWN

MITSUI OUTLET PARK LINKOUMITSUI OUTLET PARKKLIA SEPANG

O&M (San Francisco)Foundation for Value Creation

1200 17th Street(Washington D.C.)

1251 Avenue of the Americas (New York)TOKYO MIDTOWN HIBIYA

Housing

HALEKULANI (Honolulu)

527 Madison Avenue (New York)Park City Musashikosugi
The Garden

19Park Court Sanbancho
Hilltop Residence

Mitsui Fudosan Co., Ltd.

Park Court Akasaka
Hinokicho The Tower

Park Court Aoyama
The Tower

Azabu Kasumicho Park Mansion

Okawabata River City 21

Park City Hamadayama

Park City Chuo-Minato The Tower
MFLP Funabashi I

Data Section

Logistics Facilities

MFLP Hino

MFLP Ibaraki

Mitsui Fudosan Co., Ltd.

20

1,000500

501

0 2011 2012 2013 2014 2015 2016 2017
（年度）
ステージⅠ

ステージⅡ

TOP MESSAGE

2,000

1,300

1,500

501

Masanobu Komoda

President and Chief Executive Ofﬁcer
Fudosan Co., Ltd.
ステージⅠMitsui
ステージⅡ

0 2011 2012 2013 2014 2015 2016 2017（年度）

ReviewThe Success of our Medium-to-Long Term Business Plan
“Innovation 2017” Exceeded Expectations

Stage II target

250

Result245.9 245.0

150 126.0

Plan

1,500.0–1,800.0

2,400.0

Results

1,776.0

2,503.650
0 2011 2012 2013 2014 2015 2016 2017 (FY)Stage I

Mitsui Fudosan Co., Ltd.

Stage II

55 Hudson Yards
Project

ResultStage II target

in the UK■ Expanding logistics facilities business

7.4

8.0

130.0

6.0
4.0

50.1

Television Centre Redevelopment Project

ROE (Reference)

（%）

200

50 Hudson Yards
Project■ Mixed-use project

ROA

Stage II target(Billions of yen)

50

Established multi-site sharedoffices for corporate clients

Stage II(2015–2017)

100

100

Established a fashion
E-commerce mall(Billions of yen)(2012–2014)150

Hudson Yards
project, an extremely
large-scale private
development projectin Manhattan■ Working toward over 10,000 hotel rooms under management

155.8

200

21

Stage I

■ Participating in thethe leasing business using ICT■ Promoting neighborhood creation■ Retail property projects in Southeast Asia

Nihonbashi Revitalization Plan

MITSUI OUTLET PARKKLIA SEPANG

Data Section(Billions of yen)Domestic and overseas investments(Capital expenditures + Investment
in real property for sale)

Profit attributable toowners of parent

Operating income
Resultmanagement to increase corporate value. Furthermore, in
addition to profit growth, we have seen big improvements in
ROA and ROE, which reflect our efficiency. We have also steadily
carried out investment aimed at further growth in the future.

■ Strengthening the competitiveness ofFoundation for Value Creation

Our medium-to-long term business plan “Innovation 2017,”
formulated in April 2012, included a vision that called for theCompany to “continue to create new markets and grow as aleading company, while establishing a solid position as a globalfirm” within ten years and we have been steadily implementing
growth strategies aimed at realizing this. As a result, in the fiscal
year ended March 31, 2018, the final year of this plan, werecorded operating income of ¥245.9 billion and profit
attributable to owners of the parent of ¥155.8 billion, bothexceeding the targets in the plan, and we accomplished significant
profit growth compared to when the plan was formulated.
I believe these positive results are the result not only of astrong real estate market, but of our steady execution of ourthree basic strategies of customer-centered management,
business model innovation, and full implementation of GroupDramatically Growing the Overseas BusinessBusiness Report

Strengthening the Competitiveness of
our Domestic Businesses

Vision and Strategy

1,000

In Japan, we have established a framework that provides a
one-stop service which caters for increasingly diverse housingneeds, and within our efforts aimed at expanding our hotelbusiness to engage increasing inbound demand, we are alreadyclose to having 10,000 rooms under management.
Regarding our model for joint value creation with investors, wehave expanded into a new asset class by entering the logistics
facilities business. The total project cost as of the end of fiscal
2017 was ¥390.0 billion and we have secured business opportunities with a total floor space of around 2.5 million square meters.
Additionally, in August 2016 we contributed to further expanding
the J-REIT market by listing Mitsui Fudosan Logistics Park
Investment Corporation.
In our efforts to expand globally, we have participated in an
extremely big project in the US as a private developer and have
had great success in projects that both expand asset classes andachieve expansion into new cities and countries, such as ourhotel business in Taiwan and our condominium business in thePhilippines. I expect these to become drivers of significant profit
growth for the Group from fiscal 2018 onwards.

Corporate Profile

Our main strategies were to strengthen the competitiveness ofour domestic business and create dramatic growth in overseas
business. Regarding our efforts to create neighborhoods, we
strived to maximize the appeal of neighborhoods by promoting
mixed-use neighborhoods that serve various purposes, providing
high-quality in terms of the “hard” side, the buildings
themselves, and by providing value-adding “soft” services. In
March 2018, TOKYO MIDTOWN HIBIYA opened for business,and seeing so many customers visiting the complex enabled me
to appreciate the new neighborhood value the complex isgenerating for the Tokyo/Hibiya area.
In our office business, we have launched WORKSTYLING
multi-site shared offices for corporate clients and these offices
have been well received by companies which support a diverse
range of employee working styles and aim to improve laborproductivity. In our retail properties business, we launched &mall,a new E-commerce business which is being used by a broad
range of highly fashion-conscious customer segments. This has
been a big step in our development of a new business area.

Driving Toward Growthwith the Formulation of
1,558
our Long-Term
Vision- VISION 2025

（億円）

500

Growth Strategy Initiatives

Approx.5%

4.8

4.6

3.6

2.0

0 2011 2012 2013 2014 2015 2016 2017 (FY)Stage I

Stage II

02011 2012 2013 2014 2015 2016 2017 (FY)Stage ITOKYO MIDTOWN HIBIYAMITSUI OUTLET PARK LINKOU

Stage II

Mitsui Fudosan Co., Ltd.

22

TOP MESSAGE

VISION 2025 — The Newly Formulated Group Long-Term Vision
Basic Strategies
In VISION 2025, we have laid out the following three future
directions for the Group – successfully establish a sustainable
society through the creation of neighborhoods, harness
technology to innovate the real estate business, and evolve into a
global company. Based on these, we will execute the three basic
strategies of customer-centered management, business innovation,and evolution of Group management.
Regarding customer-centered management, with the
population shrinking we cannot expect demand to grow much involume, so it is especially important that we recognize changes in
the nature of our customers and uncover their unmet needs. As
for business innovation, we should aim to establish new profit
models by innovating the real estate business in accordance withchanges in the business environment and using digitaltechnology to change the way neighborhoods are created.
Furthermore, alongside the diversification of customer needs,
the boundaries between office, retail, and housing business
continue to blur, so we will need to evolve Group management
going forward by realizing the synergistic effects of collaboration
between Group companies engaging in different business areasand implementing external collaborations and open innovation.

Drive Evolution in the Creation of Neighborhoods
Going forward, we need to change our basic approach to neighborhood creation. We will evolve from building standalone assets
such as houses or office buildings, to creating neighborhoods
and shift from building facilities and spaces to providing businessand daily lifestyles. Advancing this approach will make people
the centerpiece of the creation of neighborhoods. We will aspireto create neighborhoods where just being there will improve theproductivity of workers, create new industries, provide comfortable and healthy lifestyles for residents, enable affluent andcomfortable lifestyles, and provide enjoyment for visitors.
When creating neighborhoods, the period after the completionof construction is crucial. It is important to continue raising levelsof appeal and value in the neighborhood as time passes bypromoting high-quality town management that creates communities closely tied to localities. By managing neighborhoods in thisway, we aim to contribute to the solution of various social issues
and the realization of a sustainable society.

Innovate Business Models by Harnessing Real Estate Tech
ICT is already being used in some of the business undertaken by
the Group but going forward it is essential that we enhance thecompetitiveness of existing businesses by actively utilizing ICT torealize concepts such as productivity enhancing office buildings,
comfortable and healthy housing, and convenient, stress-freeretail properties. We are now able to create new businesses thatblend real estate and ICT, such as WORKSTYLING and &mall, so
we want to accelerate this kind of innovation. Furthermore, as weare accumulating large volumes of data from projects we undertake, including neighborhoods, office buildings, housing, andretail properties, we will be able to use this to innovate the realestate business.

Vision and Strategy
Business Report

Going forward, the global economy is expected to continue its
gradual recovery. At the same time, a high level of uncertainty
remains due to factors including the effects of geopolitical risk,
the development of Brexit and political and economic trends in
the U.S., and the economic future of China and emerging nationsin Asia. In Japan, an increase in exports, an improvement incorporate profits due to the recovery of the global economy, agradual pick up in capital investment, and an upturn in consumer
spending due to improvements in the employment and wage
environment are expected. However, we need to continue
paying close attention to global political, economic and financial
market movement. Also, now that Japan is seeing thefull-fledged progression of population decline, low birthrates andthe aging of society, we can expect major changes in theconditions surrounding our business, including the evolution oftechnology, particularly ICT, at an accelerated pace, thediversification and fragmentation of people’s perception of value,
and an increasing awareness of sustainability in society and thesocial responsibilities of companies.
Amid these conditions, the Mitsui Fudosan Group is working toinnovate the real estate business and achieve further globalization, and in May 2018, we formulated our new VISION 2025
long-term vision in order to realize sustainable growth into themid-2020s and beyond.

Main Initiatives

Corporate Profile

Further Growth● Successfully establish a sustainable society through thecreation of neighborhoods

VISION 2025

● Harness technology to innovate the real estate business● Evolve into a global company

Foundation for Value Creation&mall E-commerce site

Create value by executing three basic strategies to realize the 2025 VISION
Customer-centered management■ Appropriately address changes in customers’ values■ Create markets by uncovering unmet needs■ Execute on a global level

23

Pursue common social value

Establish a sustainable society
Drive sustainable profit growthBusiness innovation

Evolution of Group management■ Innovate the real estate business■ Make extensive use of digital technology■ Establish new profit models■ Strengthen Group synergies■ Promote Group collaboration globally■ Strengthen external collaboration and implement open innovation

Mitsui Fudosan Co., Ltd.

Data Section

Achieve Society 5.0
Contribute to the SDGs

TOKYO MIDTOWN HIBIYAWORKSTYLING

Mitsui Fudosan Co., Ltd.

24

TOP MESSAGE

In order to steadily implement the main initiatives of driving
evolution in the creation of neighborhoods, innovating businessmodels by harnessing real estate tech, and dramatically growing
the overseas business, we need to strengthen the infrastructurethat supports these, such as human resource strategies, organization, systems and governance, and asset and financial strategy.

Organization, Systems and Governance
Each Group company needs to maximize Group profits above
their own and to achieve this, we will change employee awareness and systems. We will also renew our efforts at fostering aculture and establishing systems that generate new innovation.
Furthermore, we recognize that when continuously expanding
business areas, whether in Japan or overseas, risk managementin the Company’s activities is an extremely important issue, andwe will strive to further strengthen governance and strictly
enforce compliance at the Company and each Group company.

Drive evolution in the creationof neighborhoods

Innovate business models
by harnessing real estate techE
S
G

Environment● Establish ultra-smart societies by creating neighborhoods● Achieve a society where a diverse workforce can thrive

Social● Achieve health, safety and security in people’s daily lives● Create new industries through open innovation

Governance● Reduce environmental impact and generate energy● Continuously improve compliance and governanceDramatically grow theoverseas business

Consolidated
operating income

Strengthen infrastructure to support initiatives

tion by women■ Recruit and train globally minded
human resources and IT professionals

25

Mitsui Fudosan Co., Ltd.

■ Enhance awareness of Group-wide
optimization■ Organization and systems that encourage innovation■ Strengthen governance and strictly■ Appropriately control the balance sheet■ Build an optimal portfolio■ Diversify fundraising methods as appropriate for various asset types

Of which:
Overseas income
ROA

Around●Mitsui Fudosan reinvests earnings to increase
shareholder value over the medium to long term andreturns profits to shareholders based on comprehensive consideration of such factors as the businessenvironment 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 toowners of parent.

¥350 billion
Around30%

Around5%

Data Section■ Promote further diversity■ Encourage higher workforce participa-

Asset and financial strategy

Foundation for Value Creation

Shareholder Returns Policy
Around 2025

Organization,systems and governance

Based on the Mitsui Fudosan Group’s Group Statement of “theMitsui Fudosan Group aims to bring affluence and comfort tourban living,” and our “&” logo representing our philosophy of“coexist in harmony with society,” “link diverse values,” and“achieve a sustainable society,” we have implemented various
pioneering initiatives. When formulating VISION 2025, we
reaffirmed our understanding that efforts to realize a sustainable
society support sustainable growth for the Group and raise
corporate value, and established priority goals for the Group’sbusiness activities accordingly. Mitsui Fudosan Group employees
and officers will take the initiative in pursuing these goals andcontribute to creating social value and improving the sustainability of society.

Priority goals

Outlook

Human resource strategies

Achieve a Sustainable Society and Drive
Sustainable Profit GrowthBusiness Report

Steadily support main initiatives

Asset and Financial Strategy
Going forward, we plan to actively invest in high-quality projects.
However, we need to pay close attention to changes in thefinancial environment, particularly interest rate rises. While
preparing for the possibility of interest rate hikes not only inEurope and North America, but also in Japan, we will ensure
financial soundness and realize sustained profit growth by appropriately controlling our balance of holding, trading and management, building an optimal asset portfolio, and optimizing
fundraising methods as appropriate for various asset types.

Vision and Strategy

Infrastructure to support main initiatives

Human Resource Strategies
The Mitsui Fudosan Group needs to promote further diversity in
our personnel in order to meet the needs of a dramaticallychanging society and create new value. As a majority of theGroup’s customers are women, it is very important that we
encourage higher workforce participation by women and makeuse of their perspectives to further develop customer-centered
management to respond with agility to changes in the market.
Although we have already set specific targets and are working
towards these, we want to further strengthen our engagement
going forward. We also recognize that recruiting and training
globally minded human resources and IT professionals is apressing issue and are working on this with a sense of urgency.

Corporate Profile

Dramatically Grow the Overseas BusinessIn our overseas business development to date, we havereaffirmed the Mitsui Fudosan Group’s strengths of covering all
product segments, including offices, retail, housing, and hotels,
and our collective capabilities, including the combination offunctions from investment, development, and management toleasing and sales. We will strive to continue capturing exceptional business opportunities and steadily promote our business by
combining these globally rare collective capabilities with ouroverseas partner strategy. Furthermore, the real estate businessis an extremely domestically focused industry, so when expanding our business overseas, recruiting and training globallyminded human resources within Japan will be essential, as will
promoting further localization at our overseas subsidiaries. We
will also strengthen our framework for overseas business expansion through initiatives such as relationship building with local
communities.

enforce compliance

Mitsui Fudosan Co., Ltd.

26

TOP MESSAGE

Corporate Profile

Finally

Mid-Term Business Plan Innovation 2017 Stage II in Review
Operating income

Profit attributable to owners of parent(Billions of yen)

232.6

250
200
150

148.1

172.5

245.9

(Billions of yen)

200

202.4

186.0

155.8
150
100

100

131.8

76.8

59.4

50

50
0

100.1

117.7

2012

2013

2014

2015

Stage I

2016

2017

(FY)

0

Stage II

2012

2013

2014

Stage I

2015

2016

2017

(FY)

Stage II

Target income levels and other benchmarks

FY2014FY2017

245.9
138.3
83.0
48.7
(24.1)

245.0 or higher
133.0 or higher
65.0 or higher
Approx. 52.0
(Approx. 5.0)

100.1

117.7

131.8

155.8

130.0 or higher

1,976.1
1.06
4.10

2,226.2
1.16
4.13

2,287.4
1.15
4.58

2,604.6
1.18
4.56

Approx. 2,500.0
Approx. 1.3
Approx. 5%

12.0
6.4
6.37

14.0
6.8
6.20

15.9
6.8
6.75

13.8
5.6
7.44

30.0 or higher
Approx. 12%
Approx. 7%

186.0
107.8
45.4
49.3
(16.6)

Leasing
Property SalesManagement
Other
Profit attributable to ownersof parent (Billions of yen)

D/E ratio (Times)
ROA(%)*1

Mid-Term Business Plan

FY2016

Operating income (Billions of yen)Interest-bearing debt (Billions of yen)

Mid-Term Business Plan Innovation 2017 StageⅡ

FY2015

202.4
124.1
44.5
52.4
(18.6)

232.6
135.7
65.2
53.8
(22.2)FY2017(Target)

Business Report

In Japan, we will work swiftly and effectively to drive evolution in
the creation of neighborhoods and innovate business models by
harnessing real estate tech. Also, in order to strengthen the Group’s
profit growth overseas, we will leverage our strengths as a developer
to capture business opportunities and promote further localization todrive the dramatic growth of our overseas business. Furthermore, wewill support these main initiatives by continuously engaging inworkstyle reform and strengthening our internal infrastructure,
starting with human resource strategies that promote further
diversity, such as the encouragement of higher workforce
participation by women and the recruitment and training of globallyminded human resources and IT professionals.
We will also contribute to achieving Society 5.0 and the UN
Sustainable Development Goals through realizing a sustainable
society and sustainable profit growth by addressing ESG issues
based on the philosophy of the Mitsui Fudosan “&” logo.
Furthermore, we will strive to increase corporate value by continuing
to enhance corporate governance, including strengthening internal
controls.
The Mitsui Fudosan Group will execute our three basic strategies
of customer-centered management, business innovation, andevolution of Group management in order to attain sustainablegrowth both in Japan and overseas in 2020 and beyond, and moveearnestly toward realizing our new VISION 2025 long-term vision bycreating value.

Vision and Strategy

Let me state once again, in terms of the outlook for socioeconomic
conditions going forward, the global economy is expected tocontinue its gradual recovery. At the same time, a high level of
uncertainty remains due to factors including the effects ofgeopolitical risk, the development of Brexit and political andeconomic trends in the U.S., and the economic future of China andas well as emerging nations around the world. In Japan, an increasein exports, an improvement in corporate profits due to the recoveryof the global economy, a gradual pick up in capital investment, andan upturn in consumer spending due to improvements in theemployment and wage environment are expected. However, I think
we need to continue paying close attention to global political,
economic and financial market movement. Also, now Japan is seeing
the full-fledged progression of population decline, low birthrates andthe aging of society, we can expect major changes in the conditions
surrounding our business, including the evolution of technology,
particularly ICT, at an accelerated pace, the diversification andfragmentation of people’s perception of value, and an increasingawareness of sustainability in society and the social responsibilities ofcompanies.
Amid this outlook, we have established the future directions for
the Group under our VISION 2025 long-term vision as “successfully
establish a sustainable society through the creation of neighborhoods,” “harness technology to innovate the real estate business,”and “evolve into a global company,” with the aim of attaining
sustainable growth into the mid-2020s and beyond.

Foundation for Value Creation(Reference)
Overseas income*2 (Billions of yen)Overseas income ratio (%)
ROE(%)*3

President and Chief Executive Officer
Mitsui Fudosan Co., Ltd.

*1 ROA=(Operating income + non-operating income)/ average total assets over period*2 Overseas income= Overseas operating income + equity in earnings of overseas affiliates*3 ROE= Profit attributable to owners of parent/ average shareholders‘ equity over period

Investment plan

(Billions of yen)

FY2015
Domestic capital expenditures
Overseas capital expenditures
Real property for sale (Domestic)
Total Investment

170.0
150.0
420.0
740.0

* The investment amounts stated above are approximate figures

27

Mitsui Fudosan Co., Ltd.

FY2016

130.0
140.0
440.0
710.0

FY2017

280.0
270.0
500.0
1,050.0

FY2015-2017
totals580.0
560.0
1,360.02,500.0

Mid-Term Business Plan
FY2017(Target)

Data Section

Mid-Term Business Plan Innovation 2017 StageⅡ

550.0 ( - )550.0 (100.0)
1,300.0 (1,250.0)
2,400.0 (1,350.0)( )=Recovery

Mitsui Fudosan Co., Ltd.

28

Business Report

The core businesses of the Mitsui Fudosan Group are its Leasing business, which generates revenue by holding andleasing office buildings and retail properties, its Property Sales business, which generates revenue by selling realestate to investors and housing, and its Management business, which manages and operates this real estate.
These businesses form a balanced business portfolio which secures long-term, stable revenue for the Group.

5％

Mitsui Home

Mitsui Fudosan owns and operates a wide range of
quality office buildings, as well as shopping centers,
outlet malls and other types of retail properties
nationwide, primarily in the Tokyo metropolitan area.
Many of the properties are located in prime urban
areas, and welcome tenants from a diverse range ofindustries, tenants with which Mitsui Fudosan has
built strong relationships.

Revenue from operations (FY ended March 2018)14

Leasing％

Breakdown of
Revenue fromOperations by
Segment

20

％

32

％

¥558,165million

Operating income (FY ended March 2018)¥138,338million

Analysis of Revenue from Operations

29

％

Other

41%

P.41
P.43

Other

P.44

Office Buildings

Office building leasing business

Retail Properties

Retail property leasing business

Others

Leasing of logistics facilities, rental housing
and other properties

Property Sales to Individuals (Domestic)

Sales of condominiums and detached housing

Property Sales to Investors andIndividuals (Overseas), etc.

Sales of real estate for investment (offices, retailproperties, logistics facilities, rental housing
and other properties) and overseas properties

Property Management

Facility operation and management, car park
leasing, and others

Brokerage, Asset Management, etc.

Brokerage of existing housing, managementof assets of J-REITs, and others

Other

55%

500

¥558.1billion

400
300

Construction contracting of new homes andothersHotels and resorts business, golf course
management, and others
Housing remodel, mega-solar business, andothers

284.5

283.4

157.8

171.0

200
100

Businesses

Facility Operations

600¥307.8 billion

FY ended March 2018

Reporting Sub-Segment—

Revenue from Operations

Office buildings

2013

0

2014

291.6

298.6

307.8

203.3

221.2

229.3

2015

2016

2017

(FY)

About 55% of the Leasing segment’s overall revenue is derived from the highly reliable office buildings sector with its many industry-leading
tenants and about 41% is derived from the properties business. These provide a stable foundation for earnings in the Leasing segment. In
addition to offices and retail properties, Mitsui Fudosan is developing a wide range of asset types, including in the logistics facilities businessand rental housing business that will further accelerate growth of the Leasing segment.

Number of Buildings (FY ended March 2018; non-consolidated)

Real Property Trends
Real property for sale (property stock aimed at investors)

Office buildings

Retail properties

134 83

Rental properties

Appraisal gain on rental properties(Billions of yen)

4,000
3,500
3,000
2,500
2,000

518.7

557.0

2,247.5

2,256.7

1,500
1,000

920.4

1,215.9616.8
2,489.9
1,564.4

701.3
2,648.3
1,912.1

873.5
2,645.0
2,183.3

941.2

Data Section

Management

P.37(Billions of yen)

Retail properties¥229.3 billion

Retail properties

Foundation for Value Creation

Property Sales

P.30

Office buildings¥20.9 billion 4%

Breakdown of Businesses by Reporting Segment

Leasing(YoY +¥2,563 million)
Mitsui Main Building / Nihonbashi Mitsui Tower

Property Sales

Reporting Segment(YoY +¥21,646 million)

Business ReportManagement

Mitsui Home

Vision and Strategy

Other

Corporate Profile

Leasing

Business Report

2,960.7
2,475.4500
029Mitsui Fudosan Co., Ltd.

2012

2013

2014

2015

2016

2017

(FY)

Mitsui Fudosan Co., Ltd.

30

Business Report

Leasing

Office buildings

FY
Project Name
Completed (*Jointly owned property)

Location

2016

1 Angel Court

City, London

2017

G-BASE Tamachi *Minato-ku, Tokyo（≈ 18,200m2）

Shinjuku M-SQUARE

Shinjuku-ku, Tokyo（≈ 11,800m2）

TOKYO MIDTOWN HIBIYA (Hibiya Mitsui Tower)

Chiyoda-ku, Tokyo（≈ 189,000m2）

White City Place Redevelopment Project
Renovated Buildings *Wood Lane, London（≈ 143,000m ）Nihonbashi Neighborhood Development Map

OVOL Nihonbashi（Mitsui Garden Hotel
Nihonbashi Premier）

OH-1 ProjectShin-Nihonbashi Sta.

Nihonbashi Muromachi
3rd District Project
Nihonbashi Muromachi
1st District Project
Mitsukoshimae Sta.

Nihonbashi 1st District 1-2 Project

2018

Nihonbashi

Regions

8％

Nihonbashi Takashimaya Mitsui Building *Chuo-ku, Tokyo≈ 148,100m2

msb Tamachi (Tamachi Station Tower S)

Minato-ku, Tokyo≈ 136,600m2

New York≈ 117,600m2

5 Wards of

Yaesu 2nd District
Central Project

79％

TOKYO
MIDTOWNHIBIYA*

Television Centre Redevelopment ProjectOH-1 Project *Chiyoda-ku, Tokyo≈ 357,700m2

Kasuga Korakuen District Project *Bunkyo-ku, Tokyo≈ 93,900m

2020

Toyosu 2nd District 2-1 Project *Koto-ku, Tokyo≈ 259,000m2

2022

50 Hudson Yards Project *New York≈ 260,000m2

Chuo-ku, Tokyo≈ 293,000m2

Chuo-ku, Tokyo≈ 418,000m2

Chuo-ku, Tokyo

TBD (≈ 8,000m2)

Chuo-ku, Tokyo

TBD (≈ 7,000m2)

Chuo-ku, Tokyo

TBD (≈ 24,600m2)

2019

2023
or later

Yurakucho Sta.

*

Yaesu 2nd District Central Project *Nihonbashi Muromachi 1st District Project

Nihonbashi 1st District Central Project
Other Existing Projects≈ 168,000m2（Zone A）

Chuo-ku, Tokyo

Nihonbashi 1st District 1-2 Project *New Projects≈ 55,000m2

Wood Lane, London*

Nihonbashi Muromachi 3rd District Project *Yaesu 2nd District North Project

central Tokyo● Changes in the social

environment (shrinking working
population, working style reform,
worsening of personnel
shortages, etc.)● Changing office needs, startingwith office sharing● Mass supply of class S and A

buildings and manifestation of
secondary vacancies

TBD*

White City Place Redevelopment Project*2

Wood Lane, London

Countermeasures● Further strengthen

neighborhood creation● Strengthen and promote tenantleasing● Strengthen engagement in

WORKSTYLING business● Provide new business infrastruc-ture and utilize ICT to strengthen
existing businesses

Business Report

Yaesu 2nd District
North Project

Other
metropolitan
Tokyo

13％

Nihonbashi Takashimaya
Mitsui Building

2

Total Floor Space(Site Area)

Location

55 Hudson Yards Project *Nihonbashi Sta.

Tokyo Sta.

≈ 28,700m

2

Risks and Challenges

Major New Projects (to be completed in and after FY2018)
FY
Project Name
Completed (*Jointly owned property)

Nihonbashi 1st District Central Project

Revenue by Area (FY ended March 2018; non-consolidated)

Rentable Floor Space(Total Floor Space)

Vision and Strategy

Approximately 79% of non-consolidated officebuilding revenue comprises properties in thefive wards of central Tokyo, where demand for
office space is strongest. About 92% derives
from the Tokyo metropolitan area as a whole.
The office portfolio consists primarily of quality
office spaces with outstanding business
continuity planning (BCP) capabilities. The
vacancy rate for Mitsui Fudosan office buildings
in metropolitan Tokyo as of the end of March2018 was 2.2% on a non-consolidated basis.

Major Projects (completed in FY2016・FY2017)

Tokyo Nihonbashi district is the birthplace of Mitsui Fudosan and it has been positioned as
an important area under our investment strategy. We are engaged in creating a mixed-use
neighborhood including offices, retail properties, housing, hotels, and cultural facilities.

Corporate Profile

Office Buildings

Nihonbashi Revitalization Plan

● Build a strategic asset portfolio

including overseas assets≈ 71,000m2

New Buildings *Each FY completed, rentable floor space, and total floor space may change in the future. Some project names are tentative.

Foundation for Value Creation

OH-1 Project
Data Section

TOKYO MIDTOWN HIBIYA

31

Mitsui Fudosan Co., Ltd.

TOKYO MIDTOWN

Nihonbashi Takashimaya Mitsui Building

Nihonbashi Muromachi
3rd District Project

Yaesu 2nd District
North Project

55 Hudson Yards Project

Mitsui Fudosan Co., Ltd.

32

Leasing

Business Report

Office buildings

Business Report

Opening of Multi-site Shared WORKSTYLING Offices
for Corporate Clients

Retail Properties

Ratio of Fixed & Sales-Linked Rent by Category
Fixed rent

100

17%

Advanced
Wi-Fi security

Supports
teleconference
systems

Business
support tools
provided

QR codes can beused to enter andexit the office● LaLaport● MITSUI OUTLET PARK (MOP)

19%

OutletOther

81%

All properties● MOP JAZZ DREAM NAGASHIMA● MOP KURASHIKI● ALPARK● LaLaport IZUMI

SapporoOmiya
Kashiwa
Ikebukuro
Akihabara Funabashi

Tachikawa

Omotesando

Machida Shibuya

Yokohama

HibiyaYaesu

Kasumigaseki

Roppongi

Shin-Yokohama Osaki

Nihonbashi

Shiodome
ToyosuHamamatsucho
Shinagawa

KaihinMakuhari

Sendai

Umeda
Hiroshima

NagoyaHakata(FY)* Revenue from operations derived from LaLaport TOKYO-BAY has declined during the
fiscal year ended March 31, 2013 owing to the partial closure of properties.

● LaLaport IWATA● LaLaport TOKYO-BAY● Urban Dock LaLaport TOYOSU● LaLaport KASHIWANOHA● LaLaport YOKOHAMA● LaLaport SHINMISATO● LaLaport FUJIMI● LaLaport EBINA● LaLaport TACHIKAWA TACHIHI● LaLaport SHONAN HIRATSUKA● MOP IRUMA● MOP MAKUHARI● MOP KISARAZU● MOP TAMA MINAMI OSAWA● MOP YOKOHAMA BAYSIDE● LAZONA Kawasaki plaza● DiverCity Tokyo Plaza
Overseas● MOP KLIA SEPANG● MOP LINKOU● Shanjing Outlet Plaza Ningbo● Diversifying customer needs, including sharing and reuse● Shrinking and aging populations, particularly in regional

Japanese cities

Countermeasures● Continuously increase value for customers visiting existing

properties● Deepen inbound strategy● Intensify marketing strategy using ICT● Promote fashion E-commerce mall “&mall”

Data Section

New WORKSTYLING STAY
Service Launches

A Network Spreading Across Japan● MOP OSAKA TSURUMI● MOP SHIGA RYUO

2009 2010 2011 2012 2013 2014 2015 2016 2017

Foundation for Value Creation● MOP SENDAI PORT● LaLaport KOSHIENWORKSTYLING Shiodome(Shiodome City Center)0● Further expansion of the E-commerce market● MOP MARINE PIA KOBE

WORKSTYLING Yaesu(GranTokyo South Tower)

20

Risks and Challenges● MOP SAPPORO KITAHIROSHIMA● MOP HOKURIKU OYABEHigh-Grade Offices Located in Premium Urban Areas

60
40

91%

67%

● LaLaport EXPOCITY

LaLaport TOYOSU

80

9%

20
LaLaport

LaLaport YOKOHAMABusiness Report

Flexible
Integrated access
Security
pay-per-use
of management
provided by
payment system
records
onsite personnel

Shinjuku Station West/
Shinjuku Station East

54％

(Billions of yen)

33%

83%

0

Bases

6％

LaLaport TOKYO-BAY

Sales-linked rent（%）

A Replete Service for Corporations, Including Attendance Management and Security Functions

WORKSTYLING TOKYO MIDTOWN(Roppongi)

4％

9％

Sales at Mitsui Fudosan Retail Properties(FY ended March 2018) *Includes master-leased properties

40

Location

Other

28％

60

Limited tocorporate clients(FY ended March 2018) *Includes master-leased properties

Located in major metropolitan and surrounding areas, theCompany’s shopping centers are key hubs for regional
communities, offering functionality to meet the diverse
lifestyles of a broad range of ages. At existing retail properties,
meanwhile, further large-scale renovations and expansion in
anticipation of future market needs ensures properties remain
attractive, helping to maintain their high revenue-generating
capacity and profitability.

80

Features

Retail Property Revenue by Category

Vision and Strategy

In April 2017, Mitsui Fudosan Groupestablished WORKSTYLING offices,multi-site shared offices that enable
workers to choose from a wide range ofwork spaces based on their particular
working styles and life stages.
These offices are fully equipped toflexibly meet user needs, from temporary
usage by employees out on business or
at-home workers to extended use as an
office expansion. These share offices offer
ensured high security with a pay-per-use
payment system and are being used bycompanies of various sizes for a range ofdifferent purposes.

Retail properties

Corporate Profile

TOPICS

Leasing

LaLaport SHONAN HIRATSUKA

In May 2018, we launched a new
WORKSTYLING STAY service through ourmulti-site shared WORKSTYLING office in
Shiodome Italia-gai. The new service
provides a single space in which you canwork, relax, and stay, realizing a newworking style for companies which meetsthe diversifying needs of the businessworld.

* Hibiya scheduled to open in November 201833

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

34

Business Report

Leasing

Retail properties

FY
OpenedProject Name(*Jointly owned property)

Location

2016

LaLaport SHONAN HIRATSUKA

Hiratsuka, Kanagawa≈ 60,000m2

2017

SAKAE GLOBE

Nagoya, Aichi≈ 3,300m2

KICHIJOJI SQUARE

Musashino, Tokyo

≈ 6,600m2

MITSUI OUTLET PARKJAZZ DREAM NAGASHIMA (5th stage) *Kuwana, Mie≈ 6,300m2

MITSUI OUTLET PARKKLIA SEPANG (2nd stage) *Selangor, Malaysia≈ 9,800m2

Location

2018

LaLaport NAGOYA minato AQULS

Nagoya, Aichi≈ 59,500m2

MITSUI OUTLET PARK KISARAZU (3rd stage)

Kisarazu, Chiba≈ 9,300m2

Sinsaibashi-suji 1-chome Project *Osaka, Osaka

MITSUI OUTLET PARK TAICHUNG PORT

Taichung City, Taiwan≈ 35,000m2

LaLaport NUMAZU

Numazu, Shizuoka≈ 64,000m2

Store Floor Space

TBD

Chuo-ku, Tokyo

2020

LaLaport SHANGHAI JINQIAO

Pudong Jinqiao, Shanghai≈ 60,000m2

2021

MITSUI OUTLET PARKKLIA SEPANG (3rd stage) *Selangor,
Malaysia≈ 10,200m2

LaLaport Kuala Lumpur *Kuala Lumpur,
Malaysia≈ 82,600m2

LaLaport NANGANG *managed

Taipei City, Taiwan≈ 70,000m2

Retail Property Development Project in Togocho, Aichi

Aichigun, Aichi

TBD

Miyashita Park Project

Shibuya-ku, Tokyo

TBD

TBD

TBD

Realizing Synergetic Effects with Retail Property Businesses
LaLaport NUMAZU

Large-scale Renewal Projects
Execution Period

Property Namesales increases
1 Supports
by utilizing store inventory
be used by store staff
2 Can
to improve their motivation
customer numbers
3 Increases
at real stores through the internet

No. of Stores Renewed / Total No. of Stores

March – April 2018 LAZONA Kawasaki plaza≈ 100 / 330

March – May≈ 34 / 180

LaLaport SHIN MISATO

Mitsui Shopping Park &mall can improve sales at stores by enabling
not only sales of warehouse inventory, but also sales of inventory atreal stores. Also, store staff at real stores can use Mitsui Shopping
Park &mall to sell warehouse inventory when an item runs out ofstock instore, as well as upload coordinating photos to showcase an
item’s appeal over the internet. Furthermore, users can also use
Mitsui Shopping Park &mall to check inventory at stores and will beshown a list of stores with the item in stock. Through these kinds offeatures, the E-commerce mall drives the creation of opportunities toincrease visitor numbers at real stores.

Business Report

MARRONNIER×Namiki Yomiuri GINZA Project *managed

Keeping up to date with the rapid changes in
consumer behavior, Mitsui Fudosan Group has
established a fashion E-commerce mall basedon a new concept that enables customers tosimultaneously enjoy the benefits that comewith shopping both online and at real stores.
Going forward we aim to grow retailproperties business earnings through the newservice, which integrates real stores with an
E-commerce mall to create new shopping
value together with customers and tenants.

Vision and Strategy

Project Name(*Jointly owned property)*managed

Mitsui Shopping Park &mall“E-commerce Mall Linked to Real Stores” Opens

LaLaport NAGOYA minato AQULS

FY
Opened2019

TOPICSStore Floor Space

Major New Projects (to be opened in and after FY2018)

Corporate Profile

Major Projects (opened in FY2016・FY2017)

Foundation for Value Creation

Each FY opened and store floor space may change in the future. Some project names are tentative.

Expands sales opportunities
through linked inventories
MITSUI OUTLET PARK TAICHUNG PORT

Warehouse&mall rankings page

Enhanced E-commerce
functions improvecustomer convenience

Vitalizes real facilities by
increasing the number of
new customers

Data Section

Special feature page
(updated every weekday)

Customers

Over 10 million Mitsui Shopping Park point card members

Includes products
from 300 stores&mall coordinatedlook proposals

LaLaport Kuala Lumpur

35

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

36

Leasing

Business Report

Business Report

Property Sales

Property Sales: Revenue from Operations and OP Margin
Revenue from operations (left axis)

Operating margin (right axis)

400
300

Revenue from operations (FY ended March 2018)

6.6

9.7

8.1

298.1

9.4

9.0

315.6

295.2

277.0 6.0

275.9

3.0

100
0

(YoY +¥10,897 million)

12.0

2013

2014

2015

2016

2017

2018 (FY)0(E)

Units booked(Units)

7,000

Year-end inventories

6,557
4,858

5,000

4,391

5,200
3,707

3,000

170
2013

1,000
0

88
2015

83
2014

321

3,250

108
2017

2016

Vision and Strategy

200

345.1

9.0

Condominiums: Units Booked and Year-End Inventories

（％）

11.3

(Billions of yen)

Corporate Profile

Property Sales to Individuals (Domestic)

Mitsui Fudosan’s Property Sales segment consists of“Property sales to individuals (Domestic),” whichenjoys strong brand recognition domestically, and“Property sales to investors and individuals(Overseas), etc.,” which involves overseas properties
sales and the sale of income properties, including
offices, retail properties, logistics facilities, rental
housing, etc., to outside investors.

¥499,607million

Property Sales to Individuals (Domestic)

2018 (FY)(E)

Operating income (FY ended March 2018)¥83,010million

Land Bank (Condominiums)(YoY +¥17,724 million)（FY ended March 2018）

As of March 31, 2018

Large-scale
developments

Park Tower Shin-Kawasaki

Property sales to individuals (Domestic)

Property sales to investors and individuals (Overseas), etc.

25,000Approx.

Park City Chuo Minato The Tower

units(Billions of yen)

23％

Sales by Region (Condominiums)（FY ended March 2018）

High-grade
condominiums

28％

Metropolitan
Tokyo

Other regions

5％

89％

Kansai & Chubu

6％

Business Report

Property Sales to Individuals (Domestic)

Property Sales Segment: Operating Income

Sales by Brand (Condominiums)(incl. redevelopment projects in the planning phase)

Middle-grade
condominiums

100

49％
80

60

51.8

61.0

Property Sales to Investors and Individuals (Overseas) etc.

34.6

40

The Company develops officebuildings, retail properties, logistics
facilities, rental housing and otherincome property both in Japanand overseas for sale to diverse
investors including J-REITs, private
funds and institutional investors.

20.5

4.3

Location

2017

Park City Musashikosugi
The Garden Towers East

Kawasaki, Kanagawa≈ 590Park City Chuo-Minato The Tower

Chuo-ku, Tokyo≈ 270

regard to property sales, rental
properties, and reforms

Park Court Sanbancho Hilltop Residence

Chiyoda-ku, Tokyo≈ 90● Increasing competition for sitePark Court Akasaka Hinokicho The Tower

Minato-ku, Tokyo≈ 160

Park Court Aoyama The Tower

Minato-ku, Tokyo≈ 160

Park City Musashikosugi
The Garden Towers West

Kawasaki, Kanagawa

≈ 610

2018

MAKUHARI BAY-PARK CROSS TOWER & RESIDENCE Chiba, Chiba
2019

2020

MFLP Komaki

20

26.7

22.7

31.1

30.6

23.9

26.0
2021
or later

0

37

2013

2014

Mitsui Fudosan Co., Ltd.

2015

2016

2017

2018
(E)

(FY)

Roppongi T-Cube

Total No. ofUnits Sold *Risks and Challenges

FY to beProject Name
Reported≈ 500

Park Tower Harumi

Chuo-ku, Tokyo≈ 1,100

Park Court Hamarikyu The Tower

Minato-ku, Tokyo≈ 360

Park City Musashi-Koyama The Tower

Shinagawa-ku, Tokyo≈ 500

The Shibuya Ward Office Rebuilding Project

Shibuya-ku, Tokyo≈ 500

The Tower Yokohama Kitanaka

Yokohama, Kanagawa

MID TOWER GRAND

Chuo-ku, Tokyo≈ 390

Project for the area around Kasuga Korakuen Station

Bunkyo-ku, Tokyo≈ 400

Shirokane 1-chome EAST Northern District Project

Minato-ku, Tokyo≈ 900

KACHIDOKI Eastern District ProjectChuo-ku, Tokyo≈ 2,250≈ 1,100● Shrinking and aging populations● Diversifying customer needs inpurchasing

Countermeasures

Data Section

18.7

Mitsui Fudosan is engaged in the development and sale ofhigh-value-added condominiums and detached housing on anationwide scale. As represented by its development of condominiums, the Company is particularly strong in large-scale urban
redevelopment projects, where it enjoys significant brandrecognition.

Foundation for Value Creation

Major Large-Scale Projects● Offer broader range of housing

options that anticipate customer
needs● Strengthen coordination

between Group housing
companies● Use the Group’s capabilities toseize business opportunities
such as rebuilding andconversion projects

FY to be reported and total number of units sold may change in the future. Some project names are tentative. Includes joint development projects with codevelopers.

Mitsui Fudosan Co., Ltd.

38

Business Report

Leasing

Property Sales to Investors and Individuals (Overseas) etc.

Inventory of Property for Sales to Investors and Individuals (Overseas) etc.
(As of March 31, 2018)

Office buildings
in operation

Planned & underdevelopment

46％

Retail properties
in operation

13％

Overseas
rental housing
properties
in operation

Logistics
Rental housing
facilities
properties
in operation in operation

7％

6％

12％

TOPICS

Accelerated Development of
Logistics Facility Projects
Mitsui Fudosan quality moves forward on advanced
facility development against a backdrop of third-party
logistics and E-commerce growth at a time whenrequirements for logistics facilities are diversifying.
Since starting operations in 2012, we are currently
developing and operating 32 facilities, of which 18 are
operational and 14 are in development, for a total floor
space of approximately 2.7 million m2. We forecast
total investment in this business on a cumulative basis
to reach ¥480 billion.
Number of facilities under
Total floor spacedevelopment and in operation

Total

32

2.7

facilities

Approx.

Cumulative investment

million m2¥480.0billionMitsui Fudosan Quality& Worker& Tenant& Community& EarthCafeteria and Retail Outlets

Sophisticated Facility Space

Creation of Interaction Space

Solar Panel Installation

We have set up a cafeteria and retail
outlets inside the facility where employees can spend their time in comfort

We have created a sophisticated spaceinside the facility, taking into consideration employees’ work environment

We have created a park and other attractions within
the property and opened these to local residents
to promote formation of a new community

We have installed solar panels on therooftops of buildings to supply powereasy on the environment

Established Wi-Fi Environment

BCP Measures

Childcare Facility

Use of LED Lighting

We have established a Wi-Fi environment offering smooth Internet connections within the facility

We support tenants BCP from “soft”
aspects, including implementing
periodical disaster readiness drills

We have established a childcare facility
within the facility to support workers
who are raising children

We use LED lighting that provides highenergy efficiency to save running costs

Vision and Strategy

16％

Corporate Profile

Property Sales to Investors
and Individuals (Overseas) etc.

(As of May 21, 2018)

Multiple Exit Strategies and a Model for Joint Value Creation with Investors

Management contracts after sales

J-REITs managed by the Mitsui Fudosan Group

Major New Projects
AUM:¥1,105.0 bn.

(72 properties)¥302.7 bn.

¥303.2 bn.

AUM:

FY
Project Name
Completed (*Jointly owned property)

Metropolitan Tokyo¥98.3 bn.

(12 properties)(As of May 21, 2018)

Completed
Kawagoe IC

AUM:¥1,334.0 bn.

(Structures and manages private funds)

AUM:¥295.3 bn.

* Total amount of AUM (on an appraised value basis) and properties owned as of March 31,
2018.

Countermeasures

Tokyo● Increasing competition● Use Group capabilities

for business opportunities● Fall in the amount ofasset acquisition in the
J-REIT market

39

Mitsui Fudosan Co., Ltd.

to further strengthensite strategy● Cultivate a new exit

strategy

Atsugi IC≈ 33,100m2

MFLP Komaki

Komaki, Aichi≈ 42,500m2

MFLP Inazawa

Inazawa, Aichi≈ 73,300m2

MFLP Ibaraki

Ibaraki, Osaka≈ 242,400m2

MFLP Tsukuba

Tsukubamirai, Ibaraki≈ 25,500m2

MFLP Atsugi II

Isehara, Kanagawa≈ 54,800m

ability to offer solutions tostrengthen tenant leasing

MFLP Prologis Park Kawagoe *Kawagoe, Saitama≈ 130,900m2● Develop a product strategy

MFLP Kawaguchi I

Kawaguchi, Saitama≈ 54,100m

MFLP Atsugi III

Hiratsuka, Kanagawa≈ 47,500m2

MFIP Haneda

Ota-ku, Tokyo≈ 80,900m2

MFLP Kawasaki I

Kawasaki, Kanagawa≈ 50,000m

MFLP Funabashi II

Funabashi, Chiba≈ 224,200m2

MFLP Hiroshima I

Hiroshima, Hiroshima≈ 71,800m2

MFLP Yokohama Kohoku

Yokohama, Kanagawa≈ 50,300m2

MFLP Tachikawa Tachihi

Tachikawa, Tokyo≈ 67,000m2

2020

MFLP Osaka I

Osaka, Osaka≈ 48,300m2

2021

MFLP Funabashi III

Funabashi, Chiba≈ 270,000m2

2022

Tokyo Rail Gate EAST *managed

Shinagawa-ku, Tokyo≈ 161,400m2

Misato JCT

MFLPYashio
Yashio
MFLP
MFLP Kawaguchi I

MFLP Hino

2018

MFLP Funabashi Nishiura
MFLP Funabashi I

2019Koya JCTTokyo Rail Gate EAST Shinagawa
MFLP Yokohama Kohoku

Ebina JCT

MFIP
MFIP Inzai
Inzai

MFLP Funabashi II

Yokohama

MFLP Funabashi III
GLP•MFLP Ichikawa Shiohama
Haneda Airport

MFLP Kawasaki I

MFLP Atsugi

Risks and Challenges≈ 32,400m

Hiratsuka, Kanagawa

MFLP Kashiwa
Soka IC

Ooizumi JCT

MFLP Tachikawa Tachihi

SagamiharaAikawa IC

Kasuya, Fukuoka

MFLP Hiratsuka

MFIP Haneda

MFLP Yokohama Daikoku

MFLP Atsugi III
MFLP Hiratsuka
MFLP Atsugi II

2

2

2

2

in the logistics industry

Countermeasures● Use group capabilities andthat anticipates customer
needs● Develop a location strategy

that takes into accountpopulation and supply trends

Data Section(46 properties)

MFLP Fukuoka I

Kashiwa IC

Omiya

MFLP Prologis Park Kawagoe

HachiojiJCTadvanced logistics facilities● Chronic personnel shortages

2017

Under development

Private funds managed by the Mitsui Fudosan Group≈ 198,000m2

MFLP
MFIPTsukuba
Inzai

Tokyo-Gaikan Expressway● Increasing supply of new

Funabashi, Chiba

Kuki-Shiraoka JCT

National Route 16

Risks and Challenges

Total Floor Space

MFLP Funabashi I

2016

Kuki ICMFLP Kuki

Tokyo- Ken-O Expressway

LocationFoundation for Value Creation

AUM:(34 properties)

AUM:(122 properties)

MFLP Ibaraki

Business Report

To a diverse array of investors

FY completed and total floor space may change in the future.

Mitsui Fudosan Co., Ltd.

40

Business ReportManagement

Office buildings

Number of Buildings
under Management

Corporate Profile

Property Management
Retail properties

426

Number of Buildings
under Management

Car park leasing

Housing69

Parking lots(hourly/monthly)

Number of Rental
Housing Units for Lease

63,777

Number of Condominium
Units under Management

255,713

Mitsui Car Park Leasing

Number of Car
Parking Units
under Management

226,125

Vision and Strategy

The Management segment consists of the “Property
management,” centered on operation and management of office buildings, retail properties andresidential properties, as well as car park leasing, and“Brokerage, asset management, etc.” which includes
brokerage services for individuals such as those
provided under the Mitsui Rehouse brand name andasset management services for J-REITs, etc. Both arefee-based businesses that do not involve investment
and are therefore highly profitable and growing steadily.

(As of March 31, 2018)

Revenue from operations (FY ended March 2018)¥353,813million(YoY +¥6,141 million)

Operating income (FY ended March 2018)¥48,727million(YoY -¥5,111 million)

Property Management

Property Management

Brokerage, Asset Management, etc.

Mitsui Fudosan Residential Service Group

Number of Rental Housing Units
for Lease

Number of Condominium Units
under Management(Thousands of units)(Thousands of units)

70
60
50
40
30
20
10
0

52

58

56

61

64

2013 2014 2015 2016 2017

(FY)

60

Mitsui Fudosan Realty Group50

Number of Real Estate Sales Brokered
Nationwide

20.8

244

252

258

(Thousands of units)

256

250
200
150

154

166

191

210

226

100
50

2013 2014 2015 2016 2017

0

(FY)

2013 2014 2015 2016 2017

(FY)

This business provides contracted services such as management
and operation for diverse assets including office buildings, retailproperties, and housing, as well as construction work to prepare for
new tenants. We also operate a car park business under the Mitsui
Repark brand.

19.8

15.1

Assets under Management:

Track Record(Trillions of yen)

8％

FY2017

21.2

Assets under Management(As of March 31, 2018)

40,658

4.0

29％

3.0

Privatefunds, etc.

2.0

33％

From 1986 to 2017, the Group
was No. 1 in Japan for the numberof brokered sales nationwide for32 consecutive years.

2％8％3.61 3.73
3.32 3.42 3.47

Foundation for Value Creation

22.1

40

238

Number of Car Parking Units
under Management

Brokerage, Asset Management, etc.

(Billions of yen)

22.4

300
250
200
150
100
50
0

Mitsui Fudosan Residential Lease Co., Ltd.

Business ReportManagement Segment: Operating Income

Mitsui Fudosan Residential Lease Co., Ltd.

1.0

Originators

20％

02013 2014 2015 2016 2017

(FY)

Brokerage, Asset Management, etc.

30

TOPICS

51.0

Mitsui Fudosan Group’s “careco” Car Sharing Business

26.4

27.8

28.5

29.9

32.5

Mitsui Fudosan is developing “careco” stations as part of a car sharing business centered on Mitsui
Car Park Leasing locations in the Tokyo metropolitan and Kansai areas. We will leverage the resourcesof our car park leasing business to provide customers, especially individuals, with a service thatenables them to enjoy using a car.

28.9

10

0

41

2012

2013

2014

Mitsui Fudosan Co., Ltd.

2015

2016

2017

2018
(E)

(FY)

In the brokerage business, we provide existing housing brokeragefor individual customers and commercial real estate brokerage forcorporate customers and others through Mitsui Rehouse. In theasset management business, we provide high-quality investment
opportunities such as J-REITs and private funds, along with reliable
asset management services.

An Extensive
Lineup of Cars

Import cars

The appeal of careco is anextensive lineup of vehicles,from compact cars to minivans
and even luxury cars such as
Mercedes-Benzes.

Sedans3％Compact cars

46％

12％
Minivans

16％

SUV/sports cars

23％

Data Section

Shifts “Owning” to “Using”

20

Car Sharing Club

Partnership with Mitsui Car Park Leasing
We are partnering with Mitsui Car Park Leasing, which
manages car parks in 13,591 locations* across Japan,
to expand the business, primarily in the Tokyo
Metropolitan and Kansai areas.
Number of stations*

1,662

Number of vehicles*

2,794* As of March 31, 2018

Mitsui Fudosan Co., Ltd.

42

Business Report

Mitsui Home

Other

Mitsui Home Co., Ltd., a sub-contractor of
newly-built homes, leverages the warmth of woodusing the “2x4 (two by four)” method with little loadon the environment and superior quality and design.
This method has attracted attention for economic
reasons such as comparatively lower construction
costs and timeframes and its depreciation andamortization period when compared to using
reinforced concrete, while it is also used inlarge-scale facilities such as medical and nursing
care, welfare, education and retail properties.

The Other segment consists of hotel and resort
business, including the development of hotel
facilities, starting with Mitsui Garden Hotels, andresort facilities such as AMANEMU and HAIMURUBUSHI, the remodeling business covered by Mitsui
Fudosan Reform Co., Ltd., as well as other businesses
such as golf course management and mega-solar.
Revenue from operations(FY ended March 2018)(YoY +¥556 million)(YoY +¥854 million)

FY Ended March 2018

(Millions of yen)

Vision and Strategy(YoY +¥3,026 million)(YoY +¥4,985 million)

Operating income (FY ended March 2018)¥5,463million

Operating income(FY ended March 2018)¥87,346million ¥6,849 million

Revenue from operations (FY ended March 2018)¥252,180million

Corporate Profile

Business Report

FY Ended March 2017 Change

Facility Operations

60,12060,348(227)

Others27,22623,972

3,254

Total

87,34684,320

3,026
HOTEL THE CELESTINE GINZA

Facility Operations

Analysis of Revenue from Operations
Mitsui Home provides design, supervising construction and sub-contracting
construction of newly-built homes, as well as renovation and remodelingservices for previously built homes, and enjoys an excellent domestic reputation and strong brand recognition. Mitsui Designtec Co., Ltd. a consolidated
subsidiary, handles office and retail property remodeling projects, while
MITSUI HOME ESTATE Co., Ltd. another consolidated subsidiary, offers
rental housing intermediary and property management services.

Major New Projects

We are currently developing our Japanese
hotel and resort operations and plan to achieve
our fiscal 2020 target of approximately 10,000
guest rooms.

Location

No. ofRooms

2016

Mitsui Garden Hotel Kyobashi

Chuo-ku, Tokyo

≈ 230

Mitsui Garden Hotel Nagoya Premier

Nagoya, Aichi≈ 300

HOTEL THE CELESTINE KYOTO GION

Kyoto, Kyoto≈ 160

HOTEL THE CELESTINE GINZA

Chuo-ku, Tokyo≈ 100

Mitsui Garden Hotel Otemachi

Chiyoda-ku, Tokyo≈ 190

Mitsui Garden Hotel Gotanda

Shinagawa-ku,Tokyo

≈ 370

Mitsui Garden Hotel Nihonbashi PremierChuo-ku, Tokyo

≈ 260

Mitsui Garden Hotel Kanazawa

Kanazawa, Ishikawa≈ 170

Mitsui Garden Hotel Kyoto Station Front

Kyoto, Kyoto≈ 140

Hakataekimae 2-Chome Hotel Project

Fukuoka, Fukuoka≈ 300

HALEKULANI Okinawa

Kunigami-gun, Okinawa≈ 360

Ginza 5-Chome Hotel Project

Chiyoda-ku, Tokyo≈ 340

Sapporo Hotel Project

Sapporo, Hokkaido≈ 170

Four Seasons Hotels and Resorts (OH-1 Project)

Chiyoda-ku, Tokyo≈ 190

Toyosu 2nd District 2-1 Project

Koto-ku, Tokyo≈ 230

Taipei Zhongxiao Xinsheng Hotel Project

Taipei City, Taiwan≈ 300

Taipei Zhongshan Zhongxiao Hotel Project

Taipei City, Taiwan≈ 350

The Bvlgari Hotel Tokyo

Chuo-ku, Tokyo

≈ 100

2017
2018

(Millions of yen)

New
Construction

Reform/Renewal

Revenue

FY Ended
March 2017

Change168,579

169,246(666)

152,988

151,384

1,603

Revenue

37,19636,722

474

Orders45,094

41,185

3,908

OrdersLease
Management

Revenue

25,321

22,8672,454

Housing-RelatedMaterial Sales

Revenue

21,08318,3592,723

Revenue Total

252,180

247,195

Number of Group-Operated
Hotel Guest Rooms
2019

5,841

FY ended March 2018

rooms

Approx.10,000
2020

rooms

2022

4,985

FY to be opened and number of rooms may change in the future. Some project names are tentative.

Average Occupancy Rate（Left）(%)

Average Daily Rate(Right)
(YEN)

100

43

Mitsui Fudosan Co., Ltd.

WESTWOOD

70

60

18,00050

14,00012,00080

FY2013

10,000FY2015FY2016FY2017

40
30
20

8,000

10

2012 2013 2014 2015 2016 2017 6,000

0

(FY)

FY2014(%)

20,00016,00090

Ratio of Foreign Guests

AverageTokyo

Osaka, Kyoto

Other Area

Other

Data Section

Occupancy Rate/Average Daily RateLANGLEY

2020

Foundation for Value Creation

FY
Project Name
OpenedNote: The revenue figures below differ from those disclosed by Mitsui Home, because sales to the
Mitsui Fudosan Group are deducted from Mitsui Home’s consolidated revenue from operations.

FY Ended
March 2018

Business Report

Hanahata Asuka-En (special nursing care home for senior citizens)** This facility is the largest in Japan to be built using the 2x4 construction method (as of June 2018)

The Other segment includes theremodeling business, which primarily
provides remodeling across a wide rangeof areas from private homes through toasset regeneration projects, and theCompany’s five domestic mega-solar
projects, which have been brought
online successively since fiscal 2013.

Mitsui Fudosan Co., Ltd.

44

OtherBusiness Report

Other

Corporate Profile

TOPICS

Driven by Overseas Business Growth

China & Southeast Asia

Since the beginning of the 1970s, Mitsui Fudosan has expanded its overseas
business, continuing to grow until now through offices, retail properties, condominiums and rental housing. Combining its strengths as a general developer with thestrengths of business partners with thorough understanding of each country’s
market, the Company will build portfolios that leverage the different characteristics
of North America, Europe, and China & Asia to provide stability and growth.
LondonBeijing

Hawaii(Billionsof yen)San Francisco

6.8
2.0

15
10

11.6

5

-2.3

0

Management,
Other, etc.

Condominium

Property Sales

Domestic-5

21％≈35,000m2

2021≈70,000m2

Selangor, Malaysia

2015≈24,000m2(Phase 2) Selangor, Malaysia

2018≈9,800m2(Phase 3) Selangor, Malaysia

2021≈10,200m2

64％

84.1％

LaLaport Kuala Lumpur*

Kuala Lumpur,
Malaysia

2021≈82,600m2

Taipei Zhongxiao Xinsheng Hotel Project*

Taipei, Taiwan

2020≈300 units

Taipei Zhongshan Zhongxiao Hotel Project Taipei, Taiwan

2022≈350 units(Phase 1) Shanghai, China

2016(Phase 2) Shanghai, China

2017≈1,300 units

House Feng Xiang Yuan

*

2017

≈260 units

GEO RESIDENCES*

Petaling Jaya, Malaysia 2017

≈470 units

Conlay Place

Kuala Lumpur,
Malaysia

2020≈370 units

Singapore

2016≈870 units

Kuala Lumpur,
Malaysia

Singapore2017≈640 units*

The Criterion

Singapore

2018≈500 units

Forest Woods*

Singapore

2019≈520 units

Ideo Q Chula-Samyan*

Bangkok, Thailand

2016≈1,600 units

Ideo Thaphra Interchange* etc.

Bangkok, Thailand

2017≈3,190 units

The Brownstone

North America*

Bangkok, Thailand

2018≈5,000 units

Bangkok, Thailand

2019≈5,040 units≈16,900m2

Ashton Asoke-Rama 9 * etc.

Bangkok, Thailand

2020≈1,400 units

Acquiredin 2016≈47,500m2

CitraGarden City Citra Lake Suites

Jakarta, Indonesia

Location

Expected
Completion

Rentable Floor
Space or Units

Office270 Brannan Street*

San Francisco

2016

Waterfront Corporate Center III*New Jersey

55 Hudson Yards Project*

New York

2018≈133,200m2

50 Hudson Yards Project*

New York

2022≈272,000m2

1 Angel Court

City, London

2017≈28,700m2

White City Place Redevelopment Project*

Wood Lane, London

2017～

O&M

*

White City Place Redevelopment Project (London)

Ideo Q Chula-Samyan (Bangkok, Thailand)

2017≈120 units

New York

2017≈390 units

West Edge Tower*

Seattle2018≈340 units

San Francisco

2019≈260 units

4000 North Fairfax Drive

Arlington

2020≈330 units

Walnut Creek Transit Village*

Walnut Creek

2020≈360 units(Block 2) Walnut Creek

TBD≈240 units

Citra Raya

Tangerang, Indonesia 2024

≈1,880 units

The Arton*

Quezon City, Philippines 2025

≈1,710 units

Television Centre Redevelopment Project (London)

Data Section

San Francisco≈470 units

Each expected completion or opening, store floor space, number of guest rooms, and total number of units maychange in the future.
Some project names are tentative. Includes joint development projects with codevelopers.

ー

525 West 52nd Street*

2018

*

*

Foundation for Value Creation

Ideo O₂ etc.
Elio Del Moss * etc.

Project Name(*Jointly owned property)

*

2018

Taipei, Taiwan

Bartley Ridge*

Type

22 Texas*

Taichung, Taiwan

LaLaport NANGANG**

North America & Europe*

MITSUI OUTLET PARK TAICHUNG PORT

55 Hudson Yards Project (New York)* Total overseas income ÷ (consolidated operating income + pro forma operating income of overseas affiliates) x 100

RentalHousing≈45,000m2

THE MEWS*
50 Hudson Yards (New York)

EuropeLeasing

New Taipei City, Taiwan 2016

(Phase 1)

15％

15.9％

MITSUI OUTLET PARK LINKOUNew York

China & Asia
Overseas≈60,000m2

MITSUI OUTLET PARK KLIA SEPANG

Overseas Assets by Country

Pro forma Operating
Income of Overseas
Affiliates

2020

Business Report20

18.2 billion (7.2%)*¥

Shanghai, China

*

Hotel

Overseas Income (FY2017)

LaLaport SHANGHAI JINQIAO*

Retail

*

U.S.

Asia

Guangzhou Shanghai
TaipeiHong Kong
Kuala Lumpur
Singapore

Expected
Store Floor Space,
Opening/
Rooms or Units
Completion

Project Name(*Jointly owned property)

Vision and Strategy

EuropeLocation

Type(Block 1)

1630 Colombia Road

Washington DC

2021≈180 units

Condominium

200 Amsterdam Avenue Project*

New York

2020≈110 units

Robinson Landing

Alexandria

2020≈90 units

Mixed-use

Television Centre Redevelopment Project* Wood Lane, London

2018

ー

Each expected completion, rentable floor space and total number of units may change in the future. Some project
names are tentative.
Includes joint development projects with codevelopers.

45

Mitsui Fudosan Co., Ltd.

West Edge Tower(Seattle)

1 Angel Court (London)

LaLaport Kuala Lumpur

MOP TAICHUNG PORT（Taichung, Taiwan）

Taipei Zhongxiao Xinsheng
Hotel Project（Taipei, Taiwan）

Ideo Q Sukhumvit 36(Bangkok, Thailand)

Mitsui Fudosan Co., Ltd.

46

Foundation for Value Creation

Initiatives for the Environment

The practice and realization of “The Mitsui Fudosan Group aims to bring affluence and comfort to urban living,” asoutlined in our Group Statement, also precisely represents the crux of our CSR efforts. Taking this into consideration,
we have identified the three themes of “the environment,” “quality,” and “challenges for creating new values andmarkets” as the cornerstones of our CSR endeavors and we incorporate these into our social contribution activities.
We are also focused on strengthening corporate governance and foundations of the business activities, such as
human resources management, that support these initiatives.

Contributing to the building of a society that realizes the sustainable
development of human life is our corporate mission, and we think this is an
important business challenge directly related to increasing corporate value.
Positioning the promotion of business while addressing collaboration/cooperation withthe community, reduction of environmental burden and improvement of security/safety/comfort as vital to “harmonious
coexistence with the environment,” we endeavor to create urban environments of enrichment and comfort and tocontribute to the global environment.

Corporate Profile

Foundation for Value Creation

Building a Management System in Line with the Group Environmental PolicyGroup Statement

Mitsui Fudosan has established an Environmental Management
Committee subordinate to the Environmental Special Committee(headed by the President and CEO), established fiscal year
targets for each business division in accordance with the Group

Environmental Policy and is planning environmental initiatives
alongside Group companies subject to environmental policies.
As of April 1, 2018, there are 14 Group companies that fall within
the scope of the environmental policy.

Vision and Strategy

Bring Affluence and Comfort to Urban Living

Example CO2 Reduction Initiative (Energy Conservation, Energy Creation, Energy Storage)
Acquired Top-Level Facility Certification under the Tokyo Metropolitan Government’s Tokyo Cap-and-Trade Program

QualityP.49

We contribute to social development
through the creation of new values
while perceiving changes insociety and the economy.

Ginza Mitsui
Building

GranTokyo North
Tower

Muromachi Higashi
Mitsui Building

Muromachi
Furukawa Mitsui
Building

Muromachi Chibagin
Mitsui Building

Sumitomo Mitsui
Banking Corporation
Head Ofﬁce Building

P.51

Akasaka Biz Tower(master lease)

Nihonbashi 1-chome
Mitsui Building

Shiodome City
CenterGate City Osaki

Kasumigaseki
Building

Tokyo Club Building

Shinjuku Mitsui
Building*Buildings in the same facility

Installing Large-Scale Solar Power
Equipment in Large-Scale Logistics
Facilities*Buildings in the same facility

Installing a Co-Generation System at a
Retail Property

Providing Condominiums with High
Environmental Performance

P.53
MFLP Funabashi I

LaLaport SHONAN HIRATSUKA

Park City Musashikosugi
The Garden

Data Section

SocialContribution
Activities

TOKYO MIDTOWN

Foundation for Value Creation

We contribute to the global environmentin accordance with the philosophyof “coexisting in harmony withsociety” as symbolized by“.”

GranTokyo South
Tower

Nihonbashi Mitsui
Tower

Business Report

Environment

P.48

Challenges for Creating
New Values
and Markets

Mitsui Fudosan’s
CSR Themes

Certiﬁed as NearTop-Level Facilities(Six facilities intotal)

Certiﬁed as
Top-Level Facilities(Seven facilities intotal)

We consistently maintain a customer-oriented stance and aim to provide safe
and secure properties and services
that fully satisfy ourcustomers.

Park City Kashiwanoha
Campus The Gate Tower

Megasolar Projects
List of Mitsui Fudosan Solar Power Stations (As of the end of fiscal 2017)

Basis for Business Activities
Human Resource Management

P.55

Corporate Governance

P.59

Facility nameLocation

Date operations started

Planned generation capacity

Mitsui Engineering & Shipbuilding and Mitsui Fudosan Oita Solar Power Plant

Oita, Oita Prefecture

December 1, 2013

Approx. 21 MW (including 4 MW expansion)

Mitsui Fudosan Sanyo-Onoda Solar Power Plant

Sanyo-Onoda, Yamaguchi Prefecture

December 1, 2013

Approx. 13 MW

Mitsui Fudosan Tomakomai Solar Power Plant

Tomakomai, Hokkaido

April 1, 2014

Approx. 24 MW

Mitsui Fudosan Hachinohe Solar Power Plant

Hachinohe, Aomori Prefecture

October 1, 2014

Approx. 8 MW

Mitsui Fudosan Omuta Solar Power Plant

Omuta, Fukuoka Prefecture

December 1, 2014

Approx. 6 MW

Total

47

Mitsui Fudosan Co., Ltd.

Approx. 72 MW

Mitsui Fudosan Co., Ltd.

48

Foundation for Value Creation

Initiatives for Quality
TOPICSStrengthening Disaster Countermeasures and
BCP Support at Mitsui Office

Initiatives at Kashiwa-no-ha Smart City

PublicChiba Prefecture, Kashiwa City, NPO organizations

PrivateAcademic

Main Initiatives
11) Emergency electrical equipment that can operate for 72 hours has been made into standard
equipment (also enabling exclusive power supply for specific areas)

UDCK Wins Ishikawa Award from the City Planning
Institute of JapanThe Urban Design Center Kashiwa-no-ha (UDCK), located in
Kashiwa, Chiba Prefecture, offers urban design management
through collaboration between the public and private sectors
and academia. In May 2017,
the City Planning Institute ofJapan recognized UDCK with
its Ishikawa Award, whichgoes to individuals andorganizations who contributeto progress and growth inurban planning.

Kashiwa-no-ha Smart City Receives Best Futura Mega
Project Award at the MIPIM Awards 20172) Ability to maintain and quickly restore key functions (such as elevators, toilets, andventilation systems) has been strengthened
3) The introduction of building damage evaluation systems has been expanded (alsointroduced into buildings with heights of less than 60 meters)

22) Information dispersal has been enhanced (equipment for providing information installed,
such as TV screens)3

At the MIPIM Awards 2017, an awards ceremony held as part of
the MIPIM conference for international real estate professionals,
Kashiwa-no-ha Smart City won the top award in the Futura Mega
Project category for projects that realize the potential of futuristicneighborhood creation, realize an environment-conscious city,and contribute to the formation of a community rooted in thelocal area.

1) The area of the permanent Crisis Management Center, which is responsible for providing
leadership during disasters by providing unified information management, comprehensive evaluation capabilities and the like, has been expanded and its functions enhanced
2) It is fully equipped with multiple emergency communication devices, such as new videocommunication systems with dedicated channels
3) Someone is on duty 24 hours a day, 365 days a year

Issuing a disaster-related handbook

All-Out CS Contest Held

On August 29, 2017, Mitsui Fudosan Retail Management Co.,
Ltd. held its 9th All-Japan Customer Service Role-Playing
Contest. The contest aimed to increase the value of visiting retailproperties for customers by raising the quality of customer
interaction and service that can only be found at real stores. It
was contested by 45
representatives who
qualified throughpreliminary competitions
held at 45 facilities,
including new facilities.

On February 20, 2018, Mitsui Fudosan Hotel Management heldits 10th All-Out CS (customer satisfaction) Contest. A total of 24
participants took to the stage and demonstrated the customer
service skills they have refined through their daily work in theform of roleplay and reaffirmed the pleasure and importance ofgreeting the customer with asmile.

Data Section

All-Japan Customer Service Role Playing Contest Held

Mitsui Fudosan Co., Ltd.

Expanding the area and enhancing the functions of
the Crisis Management Center

A Disaster Preparedness Handbook and a Guide to Preventing Office Fixtures from
Falling or Overturning have been issued to tenant companies to communicate theCompany’s disaster preparedness initiatives and the importance of measures forpreventing the falling and overturning of office fixtures

Raising Customer Satisfaction

49

Strengthening capacity to aid people
unable to return home after a disaster1) Deployment of disaster stockpiles has been enhanced (one day’s worth of food and water
for building users and the expected number of people unable to return home has been
secured)4

The contest participants

Securing electrical capabilities and maintaining key functions for
72 hours after an infrastructure shut-down

Foundation for Value Creation

UDCK is operated throughcollaboration between
Public, Private,
and Academic Collaboration
seven public, private, andAn open platform that
academic organizations,accelerates problem solving
together with
contributions from
Companies,
The University of Tokyo,
cooperating organizationsprivate citizens
Chiba University
including relevant public
institutions and various
specialist companies. The flexible collaboration between thesegroups enables the implementation of comprehensive neighborhood creation.

In November 2016, Kashiwa-no-ha Smart City acquired platinum
certification, the highest rank in the category of ND (Neighborhood Development) plan certification under the international
environmental certification program LEED.

Business Report

Urban Design Center
Kashiwa-no-ha (UDCK)

Platinum Certification Acquired under the LEED-ND
Environmental Certification Program

Since 2012, Mitsui Fudosan has spent about ¥20 billion on safety, security, and business continuity planning (BCP) due
to an increase in the needs of tenant companies regarding this area following the Great East Japan Earthquake in2011. In addition to implementing improvement works to make the disaster preparedness and BCP functions ofexisting buildings equal with those of new buildings, it has also worked on strengthening both the hard and soft
aspects of BCP countermeasures, such as strengthening operation and management structures.
Vision and Strategy

Kashiwa-no-ha Smart City is a neighborhood creation project that
focuses on providing solutions for social issues. It has beendeveloped in Kashiwa City, Chiba Prefecture by the Company
since 2005. Currently,
initiatives are being
advanced based oncollaboration between the
public, private, andacademic sectors with theaim of realizing environmental
harmony, health and longevity, and the creation of new industries.

Corporate Profile

The Mitsui Fudosan Group equates quality with efforts to provide a level ofcomfort, safety and security that fully satisfies its customers and to ensure thesustainable growth and development of society. On this basis, we are committed todeveloping urban areas that bring to fruition people-friendly environments by further
enhancing quality.

Halving swaying caused by long-period ground motion at the Shinjuku Mitsui Building
Installing Japan’s first roof-mounted large-scale anti-seismic equipment(approx. 1,800 tons)
In May 2015, the Company invested about ¥5 billion to install Japan’s
first large-scale anti-seismic tuned mass damper (weighing
approximately 1,800 tons) on the roof of the Shinjuku Mitsui Building inorder to greatly reduce swaying caused by long-period ground motion.
This suppresses the amount the building sways in line with the most
cutting-edge skyscrapers and improves the safety and security of thetenants’ employees.

The contest participants

Mitsui Fudosan Co., Ltd.

50

Foundation for Value Creation

Initiatives for Creating
New Values and Markets
Utilizing ICT to Create Next-Generation Neighborhoods

A Range of Support for the Venture Community
ary technologies and services. Going forward, we aim to create
new innovation through venture support built around the threepillars of community, support and funding.

In the Mitsui Fudosan Group’s newly formulated
VISION 2025 long-term vision, “innovate
business models by harnessing real estate tech”
has been positioned as a main initiative for the
future. In addition to strengthening existing
businesses, we are also aiming to create new
businesses by combining real estate and IT.

Main Initiatives

31VENTURES OfficeHolding events or networking parties toaccelerate new projects and business

31VENTURES
Global Innovation Fund

31VENTURES
Global Brain - Growth I Business

Fund size: ¥5.0 billion (10-year management period)

Fund size: ¥30.0 billion (10-year management period)

Target stage: From seeding period to middle-stage,

Target stage: Growth-stage venture companies, etc.

Cleaning Robot Development

Verification Testing ofCommunication Robots at Retail Properties

We developed a commercial
cleaning robot with the aim ofmaking building management
more efficient and in May 2018,
it was officially introduced into
TOKYO MIDTOWN HIBIYA. The
introduction of these robots will enable more efficientbuilding management and significant reductions inpersonnel costs related to cleaning.

From March to May 2018, weinstalled communication robots
within retail properties as averification test of the use ofrobots for marketing. We tested
what effects the robots had on the flow of people
through the property and buying behavior through theirinteractions with customers, including conversations inwhich they made store recommendations and the like.

Nihonbashi as a Hub for Advancing the Verification Testing of ICT Usage

but especially early-stages

Aiming to Sophisticate Disaster Preparedness in
the Nihonbashi Area

Potential Areas
Cybersecurity

E-commerce

Energy and environment

AI and big data

IoT

Sharing economy

FinTechRobotics

Healthcare

Main Companies Invested In (Examples)

From January to April 2018, we collaborated with Cisco
Systems G.K., Inc. to implement verification tests of disaster
preparedness systems that use ICT. During times of disaster,
the systems are designed to swiftly grasp the situation
regarding damage to facilities and the evacuation status ofresidents and visitors and provide useful support in areas
such as guiding evacuations and sheltering people unable toreturn home.

Utilizing a City’s Big Data in Area Management*Direct investment

In Nihonbashi, where many pharmaceutical companies have theiroffices, we continue to develop the Nihonbashi Life Science
Innovation Promotion Project, which works to encourage andrevitalize cooperation among industry, government andacademia, both domestic and overseas, in the life science
domain. In March 2016, we founded Life Science Innovation
Network Japan, Inc. (LINK-J) to support the creation of open
innovation.
In the two years since the project was established, the numberof LINK-J members (corporate and individuals) has surpassed 230(as of June 18, 2018), and over 380 events a year are being held
at associated facilities in Nihonbashi. We will continue to expand
this network with the aim of building a life-science ecosystem in
Nihonbashi.

LINK-J Networking Night WITHSUPPORTERS, one of the events being
held regularly at associated facilities in
Nihonbashi

Leading Toward a Neighborhood-Wide
Chain of Survival
In March 2018, we collaborated with Cisco Systems G.K. and
Coaido Inc. on verification tests for Japan’s first neighborhood-wide chain of survival (prevention of cardiac arrests,
early recognition of cardiac arrests and call for help, CPR,
emergency medical assistance, emergency medical
treatment at the hospital) that made use of cameras, AI andnetwork systems, and a life-saving app.

Data collected by security cameras,
Wi-Fi, etc.

Sophisticate analysis ofhuman behavior,
attributes, etc.

Creating safe and secureneighborhoods using IoT data

Real-time safety
monitoring, etc.

AI

Learning from
IoT data

Data collection
andanalysis

Big data fromurban areas

Platform forutilizing area
information

Sensor data
Climate data
Energy data
etc.

Space
planning
management

Cameras, AI, automatic detection,
and apps enable discovery
by facility security personnel
Prevent cardiac
arrests

Data analysis
using AI

Recognize cardiac
arrests early andcall for help

Optimum
solutions
Environment
Economic revitalization
Safety and security
etc.

Data Section

Nihonbashi Life Science Innovation Promotion Project

In June 2017, we conducted joint research with NTT and the
Nikken Sekkei Research Institute on an AI platform forutilizing area information in order to use a city’s various typesof big data for area management, including in fields such asenvironment, safety and security, and economic
revitalization.

IoT data

Sophisticate
predictions

Foundation for Value Creation

Real estate tech

Mitsui Fudosan Co., Ltd.

Business Report

Mitsui Fudosan’s venture co-creation project

51

Vision and Strategy

We are developing 31VENTURES, an initiative that encourages
the co-creation of new industries with venture companies by
operating venture offices, providing funding, and leveraging
Mitsui Fudosan’s broad trading area and wide range of businessareas. At the end of 2015, we established a corporate venture
capital (CVC) fund worth ¥5.0 billion and since then we haveinvested in dozens of companies in Japan and overseas, primarily
in early-stage venture companies. We have also launched aventure investment business worth a total of ¥30.0 billion thattargets growth-stage venture companies that possess revolution-

Corporate Profile

TOPICSIn creating new neighborhoods, we continue to create new value in keeping with theneeds of the times. We also believe in the importance of continuing to enhance that value
over time, with neighborhoods that are designed to get better with age. By offering solutions
that capture current social and economic changes, we also work to create new markets.

ICT speeds up aid
action by citizens
Basic life
support (early
CPR and AED)

Basic life support(emergency medical
assistance, treatment
at the hospital)

Mitsui Fudosan Co., Ltd.

52

Foundation for Creation

Social Contribution Activities

Commitment to Local Society“Watasu Nihonbashi” is a facility for transmitting and exchanging
information created as the result of exchanges with the people of
Minamisanriku following the Great East Japan Earthquake. A
variety of activities take place at the facility including theoperation of a bar andrestaurant, and workshops andlectures.
Junior high school students from
Minamisanriku visit on a school trip (Phototaken from Minamisanriku’s official website– Minamisanriku Now!)

The Nihonbashi “Hashi-Arai” Cleaning Event
Every year in July, people with a connection to Nihonbashi, suchas local neighborhood associations and companies that operate
in the area, gather and carry out cleaning activities. Mitsui
Fudosan also participates.

We provide housing and offices that use timber taken from our Group-owned
forests, all of which have acquired forest management certification from theSustainable Green Ecosystem Council (SGEC). Using the gifts from these“endless forests” in neighborhood creation further increases the sustainabilityof the forests and contributes to conserving the environment and Japaneselandscape and supporting the Japanese forestry industry.

Planting

Mitsui
FudosanGroup:Locations ofGroup-Owned
Forests

Cleaning the famous Nihonbashi
bridge (carried out every July)and adding soccer and outdoor recreation facilities. Through thisinitiative, we aim to use the power of sport to create neighborhoods.

Cultivating

The Group owns a total of about
5,000ha of forest in Hokkaido

Cultivating — Appropriate Management of Hand-planted and Natural Forests
The Mitsui Fudosan Group owns roughly 5,000 hectares of forest(equivalent to 1,063 Tokyo Domes*) in 31 cities, towns and villages in
Hokkaido. Less than 40% is natural forest of trees such as Mongolian
oak, and more than 60% is hand-planted Sakhalin fir and othervarieties. In our natural forests, management is kept to a minimum sothey can be preserved in their natural state, and in our hand-planted
forests, we conduct planned tree-planting and provide appropriate
management and care. In this way, we create "never-ending forests."

Planted forest

Carbon Dioxide Absorption and Fixation by Mitsui Fudosan Group Forests Approx.

Business Report

Since 2016, Mitsui Fudosan has supported the Japan Wheelchair
Rugby Federation as an official partner. We also offer support as
official sponsors of the Japan women’s basketball team and of
sports climbing.

Utilizing Group-Owned Forests andApproach to the Global Environment

Using

Commitment to Culture and Education
Sports Sponsorship

TOPICS

Vision and Strategy

Disaster Area Information Transmission and Exchange
Base “Watasu Nihonbashi”

Corporate Profile

The Group has formulated a Policy for Social Contribution Activities,
which serves as a common standard for initiatives undertaken by each of
the Group’s companies and divisions. Activities center primarily on the four fields ofthe global environment, local communities, culture and education, and international exchange.

Natural forest

5,343t/year
Foundation for Value Creation*Annual CO2 absorption and fixation by Group-owned forests is calculated using a formula stipulated by Hokkaido Prefecture in which the biomass yield of new growth ismultiplied by the ratio of carbon content.

Planting — Afforestation training for Group employees
Mitsui Fudosan Sports Link City Fun-Te!

Commitment to International Exchange
Clothing Support Project
Since 2008, unused clothing items have been collected fromretail properties operated by the Mitsui Fudosan Group, anddonated around the world through an NPO to refugees andother people affected by disasters.

53

Mitsui Fudosan Co., Ltd.

A scene from the grand opening ceremony

Cosponsorship of the Sumida River
Fireworks Festival
We have cosponsored and provided financial
backing for the Sumida River Fireworks Festival ona continuing basis since 1985. This annual summer
event is infused with traditional Tokyo culture.

Tree-planting by group employees

Using — Using Timber from Owned Forests as Building Materials and to Create Fixtures

Data Section

The facility had its grand opening in Sendai’s Izumi-ku in April 2018 asa facility where people of all ages, fromchildren to adults, can connect and enjoy
sports and communication. Mitsui Fudosan
has given the facility a new lease of life byrenovating Ice Rink Sendai, which has
produced a number of top class ice-skaters,

Planned tree-planting is needed to create a "never-ending forest."
After felling, we strive to renew the forest through tree planting.
Also, every year, afforestation training for Group employees is heldin Group-owned forests. This is a setting where they can think
about the "never-ending forest" and the global environment byplanting seedlings with their own hands. There were 19
participants in fiscal 2017.

The Mitsui Fudosan Group uses
timber from the forests it owns tomake building materials, fixtures andother products for use in our group's
residential houses,offices, commercial
facilities and other properties. By
using wood from forestry
Flooring material
A retail property interior
Flooring and ceiling material forbalconies
management (FM) certified,Group-owned forests, we create a sustainable forest cycle, and promote the creation of "never-ending forests."
We also help to support the Japanese forestry industry.

Mitsui Fudosan Co., Ltd.

54

Human Resource Management

Diversity Initiatives

Women’s Participation and Advancement

Targets for Promoting Women’s Participation and Advancement
1. We will promote workstyle reforms to create the foundation for participation
and advancement by diverse human resources, including women.
2. We will strive to increase the number ofwomen in managerial positions in 2020 bythree times over fiscal 2015.

Childcare Initiatives
To help employees with children balance their jobs and childcare
responsibilities, Mitsui Fudosan goes beyond just establishingsystems required by law and endeavors to maintain conditions
that enable these employees to work with greater ease andconfidence and better demonstrate their abilities. We also put
effort into nurturing awareness and understanding regardingchildcare within our workplaces. As a result, during the past 20 ormore years, 100% of our full employees have returned to theirjobs after taking childcare leave.

Support for Childcare Balance (some examples)
In-office nurseries
System for childrearing-father training leave (leave to support men’s
participation in childcare)● Spouse maternity leave● Subsidy system for babysitter and after-school childcare expenses● Work-at-home system● Flex-time system for reduced working hours during childcare● Childcare leave that can be used for up to three years, longer than the legally
mandated period● Childbirth and childcare interview system●●

Mitsui Fudosan has acquired “Kurumin” certification from the
Minister of Health, Labour and Welfare as a company that
supports childcare.

Mitsui Fudosan’s Workstyle Reform Activities
Use channels such as internal publicity magazines,
internal broadcasting, and a workstyle reform portal site
to conduct educational activities and share expertise,including messages from top management● Establish a child-raising-father training leave system toencourage participation in childcare by fathers● Encourage employees to use vacation days, including
annual paid leave, and provide opportunities totransform awareness regarding this among individuals
and entire workplaces●●

Nursing Care Initiatives
To help employees providing nursing care for a family member
balance these responsibilities with their job duties, we provide
a number of related programs including a work-at-home programand assistance for nursing care-related expenses.
In addition, we established a Care Design Office staffed withprofessional care managers to serve as a dedicated internal
division for nursing care which coordinates with the Personnel
Department to hold seminars on nursing care for employees andtheir families and provides consulting to employees in connection with nursing care.

Encouraging the Employment of Seniors
We actively work to continue employment of employees over 60
years of age and provide opportunities for them to perform toenable many employees to leverage their valuable experienceand contribute to business results.

Promoting Borderless Human Resource Activity
We encourage the recruitment of local staff at our overseas
subsidiaries and the providing of internships to and recruitmentof foreign exchange students.

Reforming AwarenessWork Reform in
Organizational
Units

Support initiatives by each division through theWorkstyle Innovation Department, establish customized
workstyles and improve work efficiency

Infrastructure
Improvements

Use the shared office WORKSTYLING
Introduce work-at-home system● Utilize daycare centers inside worksites● Lend employees smartphones, tablets and notepad PCs● Utilize a computer-usage time control system●●

Health and Safety
Mitsui Fudosan recognizes that employee health and safety is a
key factor in achieving sustainable growth for the Company andwe actively engage in initiatives that maintain and promote
employee health with the aim of realizing a workplace environment that allows employees to work with vitality in harmony with
their respective lifestyles.

Health Committee and Health Management Center
EstablishedWe established the Health Committee and Health Management
Center as dedicated organizations responsible for employee
health maintenance and promotion and engage in initiatives suchas improving the rate at which employees undergo periodic
health checkups. We also set up a health consultation desk for
employees to freely consult with and are continuing in this andother ways to improve working conditions and the physical andmental health of employees in collaboration with the Personnel
Department, industrial physicians, public health nurses, andcounselors.

Mitsui Fudosan has acquired certification in the large enterprise category (White
500) under the 2017 Certified Health and Productivity Management Organization
Recognition Program as a company actively engaged in health management.

Mitsui Fudosan Co., Ltd.

An article from the Company newsletter in which
President Komoda delivers a message toemployees regarding workstyle reform

Health Management Support for Employees and Their
Spouses
In addition to carrying out health checkups, we also offer gynecological exams for female employees, thorough annual healthscreening (including gynecological exams) for all employees over
35 and their spouses, and leave to undergo thorough healthscreenings.
In fiscal 2017, 99.3% of employees underwent a health checkup or health screening (target:100%).

Individual Interviews with All Employees
Every year, Personnel Department staff strive to understand theactual work conditions and health situation of employees byholding personal interviews and stress checks for all employees,
as well as arranging interviews with industrial physicians foroverworked employees.

Data Section

Encouraging the Employment of People with Disabilities
Mitsui Fudosan is committed to the ongoing employment ofpeople with disabilities, based partly on the standpoint ofcorporate social responsibility and diversity.
At First Facilities Challenged Co., Ltd., a special subsidiary, we
proactively advance initiatives such as promoting the employment of people with disabilities and providing them with work
experience opportunities.

55

human resources with diverse values and abilities to play anactive role in realizing these goals. In April 2016, the Company
established the Workstyle Innovation Department toconsolidate and promote various existing initiatives. The
Company aims to achieve great value creation throughinitiatives both for reforming awareness toward work in limited
operation hours that enhance workstyle quality, for establishingvarious systems and work environments that support these.

Foundation for Value Creation

Mitsui Fudosan has acquired “Eruboshi” certification from
the Minister of Health, Labour and Welfare in recognitionof our exceptional engagement in initiatives for women’s
participation and advancement

Mitsui Fudosan aims to be an organization which enables
people with diverse values and abilities to perform. The
Company seeks to provide individuals with workstyles that canbe adapted to their current life stage in order to maximize thedisplay of their experience and abilities, as it realizes this isindispensable for its sustainable development.
We are moving ahead with “workstyle reform,” the name
we’ve given to activities which create a foundation that enables

Business Report

The Company is committed to being an organization thatenables human resources with diverse values, talents andlifestyles to fully demonstrate their respective abilities. From thestandpoint of women’s participation and advancement at theworkplace in particular, we strive to maintain a variety of systems,
including ones that support childcare and nursing care, andworkplace conditions that respect an employee’s values andlifestyles and enable them to continue working regardless ofgender, life events or time restrictions.

Initiatives for Workstyle Reform

Vision and Strategy

The “&” logo for the Mitsui Fudosan Group’s management
philosophy symbolizes our commitment to linking diverse values
and coexisting in harmony with society. We continue to enhancethe organization to enable diverse personnel to maximize theirabilities to meet the needs of a dramatically changing society andcreate new value.

Corporate Profile

Since its founding, the Mitsui Fudosan Group has inherited and nurtured a progressive spirit and free and open
corporate culture and used these as a driver for providing diverse and innovative solutions and services in connection
with business and living, under the Group Statement of “The Mitsui Fudosan Group aims to bring affluence and comfort
to urban living.” We see our people as an asset and the most important drivers in creating new value as a real estatedeveloper. The basic approach to human resource management at Mitsui Fudosan is to treat each employee as anindividual and create a stage on which they can sharpen their professional knowledge and abilities, increase their ability
to create added-value, and transform team performance through the integration of diverse values and skills.

Providing Facilities Where Employees Can Reenergize
In order to help employees overcome fatigue and maintain their
physical and mental health, we have established a “Refre”
refreshment facility that includes dedicated masseurs. This also
provides space for taking naps.
Additionally, Mitsui Fudosan holds annual training on healthand safety for new employees and newly appointed Groupmanagers. In fiscal 2017, 63 people took this training.

Mitsui Fudosan Co., Ltd.

56

Human Resource Management

Human Rights and Labor Standards

The Company aims to evolve into a business and lifestylesolutions partner and to achieve this, it has set a humanresources development goal of developing a diverse group of
employees with both specialized, advanced business knowledge
and broader perspectives not limited to a specific field ofexpertise. In order to achieve this goal, we have adopted a basic
policy on personnel development that broadens capabilities bycombining four opportunities for personnel development.

(2) Interviews
with employees(3) Job rotation(4) Training programs(1) OJT

Examples of Education and Training Programs

Training through long-term assignments outside the company / Cross-expert training / Training on
developing human resources / MEET21 / Support for acquiring IT Passport certification
Real estate brokerage training / Finance and accounting training / Various correspondence courses
Overseas training (English-speaking countries, Chinese-speaking countries) / Overseas management
training / Young/mid-career global training
Real estate brokerage training / Finance and accounting training / Various correspondence courses
Real estate brokerage training / Finance and accounting training / Various correspondence courses

TOPICS

Developing Global Human Resources to Support Dramatic Growthin the Overseas BusinessOne of the main thrusts of Mitsui Fudosan’s management strategy is achieving dramatic growth in the overseas
business, so we are striving to develop human resources capable of performing at a high level globally throughinitiatives such as enhancing overseas assignment training and language programs.
OJT

Strengthening management capabilities

Mid-career global training

Young people’s global training

Posting

Mitsui Fudosan Co., Ltd.

Trainee program

Global business training

For youngemployees

Policies to improve language capabilities

For mid-career
employees

57

Overseas management training

1) We will eliminate all discrimination on the grounds of race,
nationality, religion, sex, age, disability, or sexual orientation.
2) We will not tolerate any form of harassment, including sexual
harassment or abuse of power.
3) We will not permit child labor or forced labor.
4) We respect freedom of association and the right to collective
bargaining.

Preventing Child Labor and Forced Labor
The Mitsui Fudosan Group has never used child or forced labor.
In order to ensure that none is used in the future, we ensure thateach business location thoroughly complies with the laws andregulations of its host country and conduct regular monitoring.
In the unlikely event that such a violation is suspected to haveoccurred, we have also established a whistle-blowing contact
point that employees can report to.

Preventing Discrimination and Harassment

Dialogue between Labor and Management

1) Preventing General Discrimination and Harassment
We have stated clearly in the Mitsui Fudosan Group Compliance
Policies that discrimination on the grounds of race, religion, sex,age, disability, or sexual orientation is prohibited and inform all
employees of this.
We also implement training on preventing discrimination andharassment, continuously conduct awareness-raising activities,
and have established internal and external consultation services
regarding harassment that are available by telephone 24 hours aday.

We work to ensure unity between labor and management by
maintaining a framework for dialogue between employee
representatives and company management in which they meetseveral times a year to discuss the appropriateness of work
environments and work conditions.

2) Preventing Discrimination and Harassment Involving
Nationality
In order to prevent discrimination and harassment involving
nationality, we have stated clearly in the Mitsui Fudosan Group
Compliance Policies that discrimination on the grounds of foreign
nationality is prohibited and inform all employees of this. We also
ensure that nationality is not used as a discriminatory factor inrecruitment, as well as transfers, assignments, and evaluations.

Preventing Overwork
In order to prevent overwork that results in damage to the healthof employees before it occurs, we monitor working hours,
conduct interviews with employees, and notify both employees
and their direct supervisors when they are in danger of overworking. We also utilize a computer-usage time control system andestablish, promote, and enforce “no-overtime” days.

Wage Management
We comply with minimum wage requirements in each country
and pay wages that exceed these requirements.
Additionally, the average annual salary for Mitsui Fudosan Co.,
Ltd. in fiscal 2017 was ¥11.12 million.

Data Section

Training programs

We have a Human Rights Awareness Raising Committee that
formulates the Code of Employee Conduct with regard to humanrights. We are also building a Group-wide framework forrespecting human rights by establishing the Fair Employment
Screening and Human Rights Awareness Raising Promotion
Committee and organizing Fair Employment Screening andHuman Rights Awareness Raising Liaison Conferences with Group
companies.
Additionally, we are continuously working to improveunderstanding and awareness regarding human rights throughinitiatives such as holding human rights awareness training for all
Mitsui Fudosan employees.

The Mitsui Fudosan Group complies with the laws and regulations ofeach country and region in which we conduct business activities.

Foundation for Value Creation

Fostering a mindset required of working adults
Deepening awareness as organization member

MEET21 / Cross-expert training

Initiatives for Raising Human Rights Awareness

Basic Approach to Human Rights

Business Report(1) OJT
We provide on-the-job training through work on-site as the basis
for personnel development. Through specific jobs in theworkplace and communication between employees, we develop
the capabilities necessary for job performance in a planned,
continuous fashion.
(2) Interviews with employees
We emphasize face-to-face communication with each individual.
As part of our system, we provide employees with numerous
opportunities to consult/discuss their career and capability
development with the Personnel Department or their department
manager.
Every year, the Personnel Department conducts individualinterviews with each employee, and ascertains information on
their problems, development environment, work situation,

The Mitsui Fudosan Group respects basic human rights andcomplies with the laws and regulations concerning worker’s rightsof each country in which we conduct business activities.
We also support and respect the basic rights for workers set
out in the ILO Declaration on Fundamental Principles and Rights
at Work. Furthermore, we pursue methods to ensure that basic
human rights are respected in countries and regions that do notadhere to internationally-recognized basic human rights.

Vision and Strategy

worries, and other issues. In this way we develop and support
capabilities in accordance with the hopes and vision of each
employee.
(3) Job rotation
In order to cultivate professionals who possess an even broader
range of expertise, we conduct job rotation every few years. Our
aim is to develop employees and an organization which canadapt to an ever-changing environment, and this is achieved byfurther deepening the experience and knowledge of each
employee through work experience in multiple areas, whilebolstering expertise through focus on work the employee is incharge of.
(4) Training programs
We have systematic, diverse training programs, in areas ranging
from basic abilities as a working adult to specialized skills andsharing of management awareness, in accordance with therespective role and capabilities of each employee, their personal
progress in capability growth, and other factors.

Four Opportunities for Personnel Development

Training aimed at sharing management thinking
and corporate culture
Growth and expansion of abilities and field ofview
Enhancement of job performance and specialization
Growth as global human resources

Corporate Profile

Human Resource Development

Overseas language training (young/mid-career global training)
Young employees (all young employees, in principle) andmid-career employees are sent overseas for a two to eight week
program to strengthen their language ability and cultural
sensitivity and build personal networks.
Trainee program
Every year Japanese employees are sent overseas to Europe, theU.S. or Asia for six months to one year through our overseas trainee
program, where they engage in internships or language training.
Compliance training
Compliance training covering issues such as preventing
corruption is held regularly at overseas locations for employees of
local subsidiaries and local staff.

Mitsui Fudosan Co., Ltd.

58

Corporate Governance
Strategy Planning Special Committee

Contribution Committee

Formulates and deliberates Group strategy and management plans andsupervises risk management, with the goal of discussing and managing theexecution of those plans and other specific management issues

Promotes social contributions by formulating policies and measuresrelated to social contribution activities and revising and evaluating
objectives, targets and plans

Corporate Governance Structure

Risk Management Special Committee

Environmental Special Committee

Manages business risk by formulating risk management policies and plans;
tracking, evaluating and formulating responses to risk issues; issuing
instructions, etc.

Promotes environmental activities by formulating policies and measuresrelated to environmental activities and revising and evaluating objectives,
targets and plansfrom business and academia to diversify the perspective ofmanagement by providing a more comprehensive viewpoint.
In addition, corporate auditors conduct audits to evaluate thestatus of business execution by managing directors while
coordinating with the Internal Audit Department, which serves as
the Company’s internal auditing department, as well as with thecertified public accountant.
Moreover, steps have been taken to put in place the Mitsui
Fudosan Group Compliance Policies, as well as a structure thatwill ensure that Group directors and employees engage inbusiness activities in an appropriate manner.

❶ Board of Directors❹ Corpotrate Auditor’s Department

Committee❻ Executive Management Committee❺ Corporate Ofﬁcers

Committees
Audit Department

Departments/Divisions

The Nomination Advisory Committee, comprising the President and Chief
Executive Officer (Representative), one internal director, and four outside
directors, meets on matters pertaining to the nomination of managing
directors and corporate auditors.

❹Board of Corporate Auditors / Corporate Auditor’s Department
The Board of Corporate Auditors, comprising five corporate auditors,
including three outside auditors, formulates auditing policies anddetermines assignments. It also receives reports and discusses material
items on audits conducted according to these policies and assignments.
Note that the Corporate Auditor’s Department has been establishedspecifically to assist the corporate auditors with their work, and eachcorporate auditor has been assigned three dedicated employees.

Mitsui Fudosan Co., Ltd.

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Introduced Outside Auditors
Introduced Corporate Officer System
Established Advisory Committee
Introduced Outside Directors

1 person

2 persons

3 persons

4 persons

Strategy Planning Special Committee
Risk Management Special Committee
Contribution Committee
Environmental Special Committee❺Corporate Officer System
Mitsui Fudosan has introduced a corporate officer system with the aim ofcreating a business execution framework that best suits its operating
environment and activities. By promoting the separation andreinforcement of the management and executive functions, the systemenhances management soundness and efficiency. In addition, seeking tofurther reinforce the management of the Mitsui Fudosan Group, we havealso introduced a Group corporate officer system, under which executives
at Group companies have been given a status and mission similar to thoseof the corporate officers.

❻Executive Management Committee
The Executive Management Committee, consisting of executive corporate
officers, has been formed to deliberate and report on important mattersrelated to business execution and supervises internal control and risk
management. Full-time corporate auditors also attend meetings to stay
informed of important decision-making processes and the status ofbusiness execution, and provide opinions as necessary.

❼Advisory Committee
Mitsui Fudosan has also established an Advisory Committee, consisting ofexperts from business and academia, to diversify the perspective ofmanagement by providing comprehensive and forward-looking advice
from an objective viewpoint.

Matters to be Resolved by and Reported to the Boardof Directors

Analysis and Assessment of the Effectiveness of theBoard of Directors

The following matters shall be resolved by or reported to the
Mitsui Fudosan Board of Directors as stipulated by laws andregulations, the Company’s Articles of Incorporation, andcompany rules such as those regarding the Board of Directors.

Each year, the Company analyzes and evaluates the efficacy of
the Board of Directors, aiming to further enhance its functions.
An overview and results of our evaluation of the Board of
Directors’ efficacy are provided below.

(1) Matters related to shareholders’ meetings(2) Matters related to managing directors(1) Evaluation method
The Company conducted interviews with all directors and●Prospective managing director candidates

asked them to complete free-response questionnaires●The appointment and dismissal of representative directors

regarding Board of Directors’ efficacy, conducting an analysis●The appointment and dismissal of executive directors

and evaluation at the Board of Directors meeting held on May●Compensation and bonuses for directors●Other important matters(3) Matters related to the Company’s structure(4) Important matters related to compliance, etc.
●Formulating a compliance promotion plan for the fiscal year
●Reporting on the results of compliance promotion activities

implemented during the fiscal year
●Formulating an audit plan for the fiscal year
●Reporting on audit activities implemented during the fiscal

year●Evaluating internal controls concerning financial reporting

during the fiscal year and formulating audit-related policy(J-SOX activities)(5) Important matters related to personnel●The appointment and dismissal of corporate officers andexecutive corporate officers●The appointment and dismissal of key employees

25, 2018.
(2) Evaluation items●Board of Directors structure (number of members, ratio ofexecutive to non-executive members, diversity, etc.)●Status of operation of the Board of Directors (number of

meetings held, attendance rates, time spent for deliberation,
number of items deliberated, provision of information,questions and answers, etc.)●Other (issues raised in the previous evaluation of Board of

Directors’ efficacy; Compensation Advisory Committee;
Nomination Advisory Committee; meetings of outside
directors and outside corporate auditors; etc.)(3) Evaluation results and future responses
Data Section❸Nomination Advisory Committee

2007

Foundation for Value Creation

The Compensation Advisory Committee, comprising the President andChief Executive Officer (Representative), one internal director, and four
outside directors, meets on matters pertaining to the compensation ofmanaging directors.

59❽ Certiﬁed Public Accountant

President and Chief Executive Ofﬁcer❷Compensation Advisory Committee

2006

Business Report❸ Nomination Advisory

The Board of Directors, which consists of 12 members (including four
outside directors), decides on issues material to Mitsui Fudosan andmonitors the execution of business by managing directors. In addition,
under Article 373 (1) of the Companies Act, Mitsui Fudosan has
designated a special managing director who may pass judgment on theurgent acquisition of assets via bidding, etc., when so empowered by the
Board of Directors under Article 362 (4) of the Companies Act. The
corporate auditors also attend meetings of the Board of Directors andprovide opinions as necessary.

2005

Established Nomination Advisory Committee❹ Board of Corporate Auditors❶Board of Directors

2001

Established Compensation Advisory Committee

Shareholders’ Meeting❷ Compensation❼ Advisory Committee

1994

Established Corporate Auditor’s Department

Corporate Governance Structure

Advisory Committee

Initiatives for Corporate GovernanceVision and Strategy

Mitsui Fudosan has both a Board of Directors and a Board of
Corporate Auditors and has also established a Compensation
Advisory Committee and Nomination Advisory Committee toenhance transparency regarding compensation for managing
directors and nomination of managing directors and corporate
auditors. It has also adopted a corporate officer system toenhance the soundness and efficiency of management byseparating and strengthening management and executivefunctions. Mitsui Fudosan also invites and appoints outside
directors to strengthen the oversight functions of the directors
and enhance management transparency. Further, Mitsui Fudosan
has established an Advisory Committee consisting of experts

Corporate Profile

The Mitsui Fudosan Group takes a standpoint of sound, transparent and efficient management in the aim of building
optimum corporate governance to earn the trust of all stakeholders.

To achieve sustained increases in the Group’s corporate value,
it was confirmed that the Board of Directors efficacy wasproperly maintained. The results of this evaluation will be used
to further improve the functioning of the Board of Directors.

●Compensation and bonuses for corporate officers, etc.

(6) Important matters related to finance and assets(7) Other matters that are especially important in regard to
managing the Company or executing duties❽Financial Auditing
Mitsui Fudosan has concluded an auditing contract with KPMG AZSA LLC
as its certified public accountant, which conducts audits. There is noshared interest between the auditor and the Company, nor between
employees conducting operations for the auditor and the Company.

Mitsui Fudosan Co., Ltd.

60

Corporate GovernanceTotal Compensation (Millions of Yen)

Mitsui Fudosan appoints its outside directors with the
expectation that they will contribute their extensive experienceand broad knowledge to the Company’s management, and thatthey will play an appropriate role in strengthening the audit
function of the Board of Directors and ensuring transparency. The
Company also appoints its outside auditors with the expectationthat they will bring an objective stance to auditing the directors in
the performance of their duties, based on their expert
knowledge and extensive experience.

Note that, in line with Tokyo Stock Exchange requirements for
judging the independence of independent officers, the Company
uses the following standards for judging said independence:
whether there is a risk of conflicts of interest with any of theCompany’s general shareholders; whether any special interests
exist with the Company; and whether in working to enhance thesoundness and transparency of the Company’s management, theindividual is capable of making objective, fair and impartial
judgments.

Basic Compensation

Stock Options

Bonus

Total Compensation(Millions of Yen)

Chairman of the Board and Chief Executive Officer(Representative)

109

14

89

213

Masanobu Komoda

President and Chief Executive Officer(Representative)

109

14

89

213

Yoshikazu Kitahara

Managing Director (Representative)

68

9

50

128

Name

Title

Hiromichi Iwasa

Corporate Profile

Compensation of Directors Exceeding ¥100 Million

Outside Directors and Outside Auditors

Fiscal 2017 Attendance at Board of Directors
Meetings and Board of Corporate Auditors Meetings

Reasons for the Nomination

Managing Director
Toru Yamashita

As a current outside director of the Company, Toru Yamashita has properly fulfilled his duty of strengthening
supervisory functions and ensuring the transparency of the Board of Directors. The Company has reappointed him
as an outside director and independent officer in the expectation that he will make further contributions in this role.

12/13

Managing Director
Toshiaki Egashira

As a current outside director of the Company, Toshiaki Egashira has properly fulfilled his duty of strengthening
supervisory functions and ensuring the transparency of the Board of Directors. The Company has reappointed him
as an outside director and independent officer in the expectation that he will make further contributions in this role.

13/13

Managing Director
Masako Egawa

As a current outside director of the Company, Masako Egawa has properly fulfilled her duty of strengthening
supervisory functions and ensuring the transparency of the Board of Directors. The Company has reappointed her as
an outside director and independent officer in the expectation that she will make further contributions in this role.

13/13

Managing Director
Masafumi Nogimori

As a current outside director of the Company, Masafumi Nogimori has properly fulfilled his duty of strengthening
supervisory functions and ensuring the transparency of the Board of Directors. The Company has reappointed him
as an outside director and independent officer in the expectation that he will make further contributions in this role.

10/13*

Corporate Auditor
Yoshitaka Kato

As a current outside corporate auditor of the Company, Yoshitaka Kato has demonstrated sufficient ability
to audit the directors’ execution of their duties. The Company has reappointed him as a corporate auditor
and independent officer in the expectation that he will make further contributions in this role.

Board of Directors Meetings: 12/13
Board of Corporate Auditors Meetings: 12/13

Corporate Auditor
Yasushi Manago

As a current outside corporate auditor of the Company, Yasushi Manago has demonstrated sufficientability to audit the directors’ execution of their duties. The Company has reappointed him as a corporate
auditor and independent officer in the expectation that he will make further contributions in this role.

Board of Directors Meetings: 13/13
Board of Corporate Auditors Meetings: 12/13

Corporate Auditor
Yukimi Ozeki

As a current outside corporate auditor of the Company, Yukimi Ozeki has demonstrated sufficient ability toaudit the directors’ execution of their duties. The Company has reappointed her as a corporate auditor
and independent officer in the expectation that she will make further contributions in this role.

Board of Directors Meetings: 13/13
Board of Corporate Auditors Meetings: 13/13

The Executive Management Committee supervises overall risk
management for Mitsui Fudosan and the Mitsui Fudosan Group.
Under this, the Strategy Planning Special Committee and Risk
Management Special Committee manage business risk*1 andadministrative risk*2 respectively.
The Risk Management Special Committee meets in principle
once a month to identify risk-related issues, consider andestablish countermeasures and measures to prevent thereoccurrence of previous incidents, as well as convey information
to the Company and Group companies as needed.

Furthermore, the Crisis Management Subcommittee has been
established under the Risk Management Special Committee tomeet on and respond to highly-urgent matters as needed.

*1 Business risk:
Risk primarily associated with operations for advancing business and securing profit.
This includes development risk, leasing risk, and market risk.
*2 Administrative risk:
Operational risk associated with the execution of administrative work. This includes
natural disaster risk, system risk, risk related to clerical work, and compliance.
Business Report

Name

Vision and Strategy

Risk Management

Reasons for the Appointment of Outside Directors and Outside Auditors

Risk Management Organization
Board of Directors
President and CEO

Executive Management Committee
Strategy Planning Special Committee(Business risk management)

Risk Management Special Committee (Administrative risk management)* Mr. Nogimori has attended all ten Board of Directors meetings since his appointment during the current fiscal year.

Crisis Management Subcommittee

Compensation for Officers and Corporate Auditors
compensation.
Compensation paid to corporate auditors is solely basic
compensation in an amount within the scope set and approvedby resolution of the 106th Ordinary General Shareholders’Meeting.
In addition, the Company has established the Compensation
Advisory Committee, which the Board of Directors consults on
managing directors’ compensation prior to decisions made at theBoard of Directors.
Compensation for the Company’s directors and corporate
auditors for fiscal 2017 was as shown below.

Amount of Compensation by Type (Millions of Yen)
Basic Compensation

Stock Options

Bonus

Number of Applicable Officers

Internal directors

947

490

70

386

9

Full-time corporate auditors

96

96

-

-

2

Outside directors and outside auditors

87

87

-

-

8

Title

Group companies

Major Risks
Major Risks Associated with Advancing Business

Major Risks Associated with Corporate Activity● Risk of natural disasters, man-made disasters, etc.

● Information security risk

● Risk associated with changes in social structure (aging of society,● Risk of compliance violations● Risk associated with fluctuations in the economy and real estate markets● Risk associated with interest rate rises● Risk accompanying business expansion into new areas● Risk accompanying exchange rate fluctuations● Risk accompanying rises in the cost of labor, raw materials, etc.
● Risk accompanying changes in economic activity due to the proliferationof ICT, etc.

61

Mitsui Fudosan Co., Ltd.

Compliance Management Department

Respective headquarters, departments, etc.

population decline, etc.)

Total Compensation(Millions of Yen)

Clerical Risk Management Department

Data Section

Compensation by Title, Amount of Compensation by Type and Number of Applicable Officers

System Risk Management Department

Foundation for Value Creation

Managing directors’ compensation consists of basic
compensation in an amount within the scope set and approvedby resolution of the 106th Ordinary General Shareholders’Meeting, bonuses paid as short-term incentives thatcomprehensively take into consideration such things as businessresults achieved in each fiscal year which must be approved byresolution at the Ordinary General Shareholders’ Meeting, andstock options paid as medium-term incentives in an amountwithin the scope set and approved by resolution of the 95th
Ordinary General Shareholders’ Meeting. Compensation paid tomanaging directors (outside directors) is solely basic

Disaster Risk Management Department● Risk associated with directors and employees related to illegal or

improper conduct during the execution of duties, etc.
● Risk of accidents, etc., which affect the safety of customers, business

partners, or employees● Risk of defects in quality, etc., of products and services provided by theGroup● Risk associated with factors affecting the health and safety of employees,

such as long work hours

Mitsui Fudosan Co., Ltd.

62

Corporate Governance

Basic Policy
Based on the Mitsui Fudosan Group Compliance Policies, theMitsui Fudosan Group has positioned compliance as a key issue
in Group management and works to comply with laws,
regulations, and social norms, and implement fair and highly
transparent corporate activities in accordance with corporate
ethics.

Compliance Structure

Consultation Contact Points for Employees
Mitsui Fudosan has established two points of contact providing
consultation for employees of the Company, an internal contact
and an external law firm. These contacts can provide consultation
on issues regarding compliance with laws and regulations, as wellas matters pertaining to the work environment.

Compliance training
Mitsui Fudosan provides compliance training to new employees
and various directors and management-level employees of theCompany, including newly appointed Group managers andofficers, with the aim of improving compliance awareness. It also
implements e-learning-based training for all directors andmanagement-level employees, and in fiscal 2017, 100% of
eligible employees took this training.

Initiative

Content

New employees(April) * Implemented every month for dispatch and contract employees

New officer training

Newly appointed officers

Study sessions held on preventing bribery, organized crime, information
security, preventing insider trading, etc. (March)

Officer compliance training

Directors, executive managing
officers, full-time corporate
auditors, etc.

(September)

Overseas compliancetraining

International Division,
employees assigned tooverseas subsidiaries

Explanation of compliance violation case studies including cases
involving overseas companies, as well as sharing of the importance ofpreventing bribery, etc. (December)

Training for local staff atoverseas subsidiaries

Local staff at overseas
subsidiaries

Training held on preventing bribery, protecting personal information,
whistle-blowing systems, etc. (October, February)Companywide compliancetraining (e-learning)

All staff, including corporate
officers(June, November)Internal bulletins

All directors and employees

Mitsui Fudosan Group Compliance Policy shared through internalbulletins and handbooks

Compliance news

All employees

Information provided on topics and subjects that should be considered
in regard to the execution of operations, such as “eliminating organizedcrime,” and “a warning regarding ransomware.” (April, July, October,
February)

Internal training New employee training

AwarenessRaising
Activities

Mitsui Fudosan Co., Ltd.

● Other(1) Decision-making according to rules(2) Prohibition of sexual and power harassment(3) Separation of public and private● Preventing Corruption(1) Prohibiting Bribery and Handling of Gifts and Entertainment
Mitsui Fudosan has prohibited the illicit provision of
benefits to public officials and other individuals in similar
positions. Also, in dealings with business connections andaffiliates, etc., a rule has been established preventing thegiving or receiving of excessive gifts, entertainment, andthe like.
Also, the Company has established a structure and rules
to be followed to prevent bribery and has formulated andis implementing Regulations for Preventing Bribery with theaim of preventing such conduct before it occurs.
(2) Donations to Politicians and Political Organizations
Mitsui Fudosan does not provide donations toward politicalactivities to any parties other than official political parties
and political fund-raising organizations. Furthermore,
support for activities by political organizations is conducted
appropriately in accordance with the Political Funds
Control Law, laws and regulations connected to the Public
Offices Election Law, and other relevant laws andregulations.
● Other(1) Personal information protection(2) Consumer protection(3) Environmental conservation(4) Protection of and respect for intellectual property rights(5) Prohibition of insider trading

Data Section

63● Managing Company Information Appropriately
Mitsui Fudosan recognizes the importance of managing
documents and information and strives to implement appropriate
management based on its Information Management Rules,
Document Rules, Information System Management Rules, andthe like.

Foundation for Value Creation

Target● Ensuring Fair Transactions and Competition
Mitsui Fudosan will comply with all relevant laws, such as theAnti-Monopoly Act, and will avoid any conduct that could resultin unfair transactions or unjust competition. It will engage withbusiness connections sincerely as an equal partner and handle
the procurement of goods and services based on fair standards.

● Respecting Human Rights
Mitsui Fudosan does not discriminate due to sex, age, birthplace,nationality, race, ethnicity, creed, religion, disability, or any othergrounds. The Company respects human rights and strives tomaintain fair workplaces.

Business Report

Main Training and Awareness-Raising Initiatives in Fiscal 2017 (Mitsui Fudosan)● Eliminating Interactions with Organized Crime
Mitsui Fudosan strictly forbids any kind of connection toorganized crime and as a company, takes a firm stance in dealing
with such groups. Each division of the Company also investigatesand confirms that a transaction partner is not involved inorganized crime before the transaction begins. Should theunlikely situation occur that forces the Company to face
unwarranted demands or violent behavior from such organizations, it will contact the relevant police department and take anyother action necessary, including legal measures.

<In interactions between the Company and its employees>

Vision and Strategy

Mitsui Fudosan has made the officer in charge of generaladministration the person responsible overall for compliance. In
this role, they receive reports from the Compliance Management
Department and others, and particularly important matters arereported to or submitted for discussion by the Board of Directors
or the Executive Management Committee.
Said officer is also responsible for formulating a compliance-related action plan each fiscal year, including the enactment,
revision, or abolition of company rules, the implementation oftraining regarding laws, regulations, or company rules, and thesurveying and reporting of the situation regarding compliancewith laws, regulations, or company rules. They are also

responsible for implementing compliance activities based on thisplan.
Group companies are also required to formulate andimplement compliance promotion plans, and this is reported toand confirmed by the Company at the end of the fiscal year.

Corporate Profile

Preventing Improper Conduct<In interactions between the Company and society andthe economy>

Compliance

Mitsui Fudosan Co., Ltd.

64

Management Team (As of June 28, 2018)
Members of the Board
Yasuo Onozawa
Apr. 1981
Apr. 2011
Apr. 2013
Jun. 2016
Apr. 2017❻Managing Director
Shares in Company 15 thousand shares

Joined Company
Executive Managing Officer, Deputy Chief Operating Officer of
Office Building Division
Executive Managing Officer
Managing Director, Executive Managing Officer
Managing Director, Senior Executive Managing Officer(current position)

Masatoshi Satou
Apr. 1982
Apr. 1990
Apr. 2013
Apr. 2015
Jun. 2015

Corporate Profile❺Managing Director

Shares in Company 10 thousand shares

Joined Ministry of Agriculture, Forestry and Fisheries
Joined Company
Executive Managing Officer, General Manager of Accounting
and Finance Dept.
Executive Managing Officer
Managing Director, Executive Managing Officer(current position)> Significant positions currently held, etc.
Outside Director, Imperial Hotel, Ltd.

Hiroyuki Ishigami
Apr. 1982
Apr. 2013
Jun. 2017

❽

❻

❹
❾

❸
❶

❺

❼

Hiromichi Iwasa

Masanobu Komoda

Apr. 1996
Jun. 1997
Apr. 1998

Apr. 1978
Apr. 2008
Jun. 2009
Jul. 2010
Apr. 2011
Jun. 2011

Shares in Company 26 thousand shares

Joined Company
Executive Managing Officer, General Manager of
Investment Dept.
Executive Managing Director, Executive Managing Officer,
General Manager of Investment Dept.
Senior Executive Managing Director, Senior Executive
Managing Officer, General Manager of Investment Dept.
Senior Executive Managing Director, Senior Executive
Managing Officer
President and Chief Executive Officer (Representative)(current position)

Jun. 2017❾Managing Director (Outside Director)

Toru Yamashita
Apr. 1971
Jun. 1999
Jun. 2003
Jun. 2005
Jun. 2007
Jun. 2012
Jun. 2013
Jun. 2014
Jun. 2018

Shares in Company 1 thousand shares

Joined Nippon Telegraph and Telephone Public Corporation
Director, NTT DATA Corporation
Executive Managing Director, NTT DATA Corporation
Executive Vice President and Senior Executive Manager,
NTT DATA Corporation
Representative Director, President and Chief Executive Officer,
NTT DATA CorporationCounselor and Director, NTT DATA Corporation
Managing Director, Mitsui Fudosan Co., Ltd. (current position)
Chief Corporate Advisor, NTT DATA Corporation
Senior Advisor, NTT DATA Corporation (current position)

Yoshikazu Kitahara

Kiyotaka Fujibayashi

Jun. 2011
Apr. 2013
Apr. 2016
Apr. 2017
Jun. 2017* Figures for shares held by directors and corporate auditors are as of March 31, 2018.

65

Mitsui Fudosan Co., Ltd.

Apr. 1972
Jun. 2006
Apr. 2008
Apr. 2010

Jun. 2013
Jun. 2014

Jun. 2016

Shares in Company 2 thousand shares

Joined Taisho Marine & Fire Insurance Co., Ltd.
President and Chief Executive Officer, Mitsui Sumitomo
Insurance Co., Ltd.
President and Director, Mitsui Sumitomo Insurance Group
Holdings, Inc.
President, Director and CEO, MS&AD Insurance Group
Holdings, Inc.
Chairman of the Board, Mitsui Sumitomo Insurance Co., Ltd.
Managing Director, Mitsui Fudosan Co., Ltd. (current position)
Representative Director and Executive Officer, MS&AD
Insurance Group Holdings, Inc.
Representative Director, MS&AD Insurance Group
Holdings, Inc.
Director and Senior Advisor, Mitsui Sumitomo Insurance
Company, Limited
Senior Advisor, Mitsui Sumitomo Insurance Co., Ltd.
(current position)

Apr. 1981
Apr. 2011
Apr. 2012
Apr. 2013
Jun. 2013
Apr. 2017

Shares in Company 4 thousand shares

Joined Company
Group Senior Officer; Vice President and Representative
Director, Mitsui Fudosan Residential Co., Ltd.
President and Representative Director, Mitsui Fudosan
Residential Co., Ltd. (current position); Group Senior Officer
Executive Managing Officer
Managing Director, Executive Managing Officer
Managing Director, Senior Executive Managing Officer, Chief
Operating Officer of Homes and Lifestyle Promotion Division(current position)> Significant positions currently held, etc.
President and Representative Director, Mitsui Fudosan Residential Co., Ltd.

Managing Director (Outside Director)

Masako Egawa
Apr. 1980
Sep. 1986
Jun. 1988
Dec. 1993
Nov. 2001
Apr. 2009
Jun. 2015
Sep. 2015

Shares in Company 1 thousand shares

Joined Citibank, N.A. Tokyo Branch
Joined Salomon Brothers Inc. New York Head Office
Joined Salomon Brothers Asia Limited Tokyo Branch
Joined S.G. Warburg & Co. Ltd. Tokyo Branch
Executive Director, Harvard Business School Japan
Research Center
Executive Vice President, The University of TokyoManaging Director, Mitsui Fudosan Co., Ltd. (current position)
Professor, Graduate School of Commerce and Management(now Hitotsubashi University Business School), Hitotsubashi
University (current position)> Significant positions currently held, etc.
Professor, Hitotsubashi University Business School
Outside Director, AGC Inc.
Outside Director, Tokio Marine Holdings, Inc.

Managing Director (Outside Director)

Masafumi Nogimori
Apr. 1970
Jun. 1997
Jun. 2000
Jun. 2001
Jun. 2003
Apr. 2005
Jun. 2006
Jun. 2011
Jun. 2017

Shares in Company 0 shares

Joined Fujisawa Pharmaceutical Co., Ltd.
Director, Fujisawa Pharmaceutical Co., Ltd.
Corporate Executive, Fujisawa Pharmaceutical Co., Ltd.
Managing Corporate Executive, Fujisawa PharmaceuticalCo., Ltd.
Director and Managing Corporate Executive, Fujisawa
Pharmaceutical Co., Ltd.
Representative Director and Executive Vice President,
Astellas Pharma Inc.
Representative Director, President and Chief Executive
Officer, Astellas Pharma Inc.
Representative Director and Chairman, Astellas Pharma Inc.
Managing Director (current position)

Data Section

Apr. 2011

Managing Director (Outside Director)> Significant positions currently held, etc.
Senior Advisor, Mitsui Sumitomo Insurance Co., Ltd.

❹Managing Director

Joined Company
Executive Managing Officer, Deputy Chief Operating Officer of
Office Building Division
Executive Managing Officer, Chief Operating Officer of Office
Building Division
Executive Managing Director, Executive Managing Officer,
Chief Operating Officer of Office Building Division
Managing Director, Senior Executive Managing Officer, Chief
Operating Officer of Office Building Division
Managing Director, Senior Executive Managing Officer
Managing Director, Executive Vice PresidentManaging Director (Representative), Executive Vice President(current position)

Joined Sony Corporation
Joined Company
Executive Managing Officer, Chief Operating Officer ofAccommodations Business Division
Executive Managing Officer, Deputy Chief Operating Officer ofInternational Division
Executive Managing Officer, Chief Operating Officer ofInternational Division
Managing Director, Executive Managing Officer, Chief
Operating Officer of International Division (current position)

Toshiaki EgashiraApr. 2016> Significant positions currently held, etc.
Senior Advisor, NTT DATA Corporation
Outside Director, Hakuhodo DY Holdings Inc.

❸Managing Director (Representative)

Apr. 1980
Apr. 2008

Apr. 2016
Apr. 2017> Significant positions currently held, etc.
Outside Director, TV TOKYO Holdings Corporation

Shares in Company 4 thousand shares

Apr. 1982
Mar. 1990
Apr. 2013

Shares in Company 8 thousand shares

Foundation for Value Creation

Jun. 1998
Apr. 2001
Jun. 2011

Joined Company
Managing Director, General Manager of Project Planning
Division, Project 1st Planning Dept., General Manager ofProject Planning Division, Construction Dept.
Executive Managing Director, Chief Operating Officer ofProject Planning Division
Senior Executive Managing Director (Representative),
Chief Operating Officer of Project Planning Division
Senior Executive Managing Director (Representative), Chief
Operating Officer of Asset Management Division
President (Representative)
President and Chief Executive Officer (Representative)
Chairman of the Board and Chief Executive Officer(Representative) (current position)

Joined Company
Executive Managing Officer, Chief Operating Officer of Retail
Properties Division
Managing Director, Executive Managing Officer, Chief
Operating Officer of Retail Properties Division (current position)

Takashi Yamamoto

Business Report❷President and Chief Executive Officer (Representative)

Apr. 1967
Jun. 1995

Shares in Company 5 thousand shares❷❶Chairman of the Board and Chief Executive Officer(Representative)
Shares in Company 62 thousand shares❽Managing Director

Vision and Strategy❼Managing Director> Significant positions currently held, etc.
Outside Director, Daicel Corporation
External Director, Linical Co., Ltd.

Mitsui Fudosan Co., Ltd.

66

Corporate Auditors

Corporate Officers

Hiroshi Asai
Apr. 1976
Apr. 2009❷Senior Corporate Auditor
Shares in Company 10 thousand shares

Joined Company
Group Senior Officer, Mitsui Fudosan Co., Ltd., President
and Chief Executive Officer, Mitsui Fudosan Investment
Advisors, Inc.
Executive Managing Officer
Executive Managing Director, Executive Managing Officer
Managing Director, Executive Managing Officer
Managing Director
Senior Corporate Auditor (current position)❸Corporate Auditor (Outside Auditor)

Yoshitaka Kato

Kenji Iino
Apr. 1978
Apr. 2009
Apr. 2011
Jun. 2011
Apr. 2013
Apr. 2016
Jun. 2016

Shares in Company 12 thousand shares

Joined Company
Executive Managing Officer, General Manager of
Personnel Dept.
Executive Managing Officer
Executive Managing Director, Executive Managing Officer
Managing Director, Executive Managing Officer
Managing Director
Senior Corporate Auditor (current position)> Significant positions currently held, etc.
Outside Auditor, Imperial Hotel, Ltd.

❹Corporate Auditor (Outside Auditor)
Shares in Company 0 shares

Joined Tetsuzo Ota & Co.
Registered as Certified Public Accountant
Executive Director, Ernst & Young ShinNihon LLC
CEO, Ernst & Young ShinNihon LLC
Corporate Auditor (current position)
Certified Public Accountants> Significant positions currently held, etc.
Outside Auditor, Sumitomo Chemical Co., Ltd.
Outside Auditor, SUMITOMO CORPORATION

Yasushi Manago
Apr. 1978
Jul. 2009
Jul. 2010
Aug. 2012
Feb. 2014
Feb. 2014
Jun. 2015

Shares in Company 0 shares

Joined Ministry of Finance
Deputy Vice Minister, Ministry of FinanceDirector-General of the Budget Bureau, Ministry of Finance
Administrative Vice Minister, Ministry of FinanceRegistered as Lawyer, Daiichi Tokyo BAR Association
Of Counsel, Nishimura & Asahi LPC (current position)
Corporate Auditor, Mitsui Fudosan Co., Ltd.
(current position)❺

President and Chief Executive Officer

Masanobu Komoda

Executive Managing Officer

Satoshi Hironaka

Executive Vice President

Yoshikazu Kitahara

Managing Officer

Yousuke Seko

Senior Executive Managing Officer

Kiyotaka Fujibayashi

Managing Officer

Hiroki Saito

Senior Executive Managing Officer

Yasuo Onozawa

Managing Officer

Osamu Obayashi

Senior Executive Managing Officer

Shoichiro Kawamoto

Managing Officer

Shingo Suzuki

Executive Managing Officer

Masatoshi SatouManaging Officer

Ikuo Mori

Executive Managing Officer

Hiroyuki Ishigami

Managing Officer

Yutaka Kawamura

Executive Managing Officer

Takashi Yamamoto

Managing Officer

Makoto Tokuda

Executive Managing Officer

Akihiko Funaoka

Managing Officer

Motoyasu Kato

Executive Managing Officer

Takashi Ueda

Managing Officer

Retsu Togashi

Executive Managing Officer

Takayuki Miki

Executive Managing Officer

Wataru Hamamoto* As of July 6, 2018

Group Officers
Group Senior Officer

Yasuhiko Yamashiro[Mitsui Fudosan Realty Co., Ltd.]Group Senior Officer

Tooru Inoue[Mitsui Fudosan Reform Co., Ltd.]Group Officer

Shuji Tomikawa[Mitsui Fudosan Investment Advisors, Inc.]

Group Officer

Hideki Moriya[Mitsui Fudosan Residential Co., Ltd.]Group Officer

Takao Yamada[Mitsui Fudosan Residential Co., Ltd.]Group Officer

Yashushi Endo

[Mitsui Fudosan Realty Co., Ltd.]Group Officer

Tooru Kamura[Mitsui Fudosan Residential Co., Ltd.]Foundation for Value Creation

Nov. 1974
Sep. 1978
Jun. 2006
Aug. 2008
Jun. 2015❸

Yoshihiro Hirokawa

Business Report

Apr. 2011
Jun. 2011
Apr. 2013
Apr. 2015
Jun. 2015❶

Executive Managing Officer

Vision and Strategy❶Senior Corporate Auditor❷

Hiromichi Iwasa

Corporate Profile❹

Chairman and Chief Executive Officer> Significant positions currently held, etc.
Lawyer, Of Counsel, Nishimura & Asahi LCP
Outside Director, Nippon Television Holdings, Inc.

❺Corporate Auditor (Outside Auditor)

Apr. 1999
Aug. 2000
Apr. 2004
Apr. 2010
Sep. 2015
Jun. 2016

Shares in Company 0 shares

Data Section

Yukimi Ozeki

Full-time Lecturer, Nagasaki University Faculty of Economics
Research Scholar, University of Michigan Law School
Associate Professor, Komazawa University Faculty of Law
Professor, Seikei University Law School (current position)
Visiting Scholar, University of California, Berkeley, Schoolof Law
Corporate Auditor, Mitsui Fudosan Co., Ltd., (current position)> Significant positions currently held, etc.
Professor, Seikei University Law School* Figures for shares held by directors and corporate auditors are as of March 31, 2018.

67

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

68

Performance Highlights
Innovation 2017
Stage II

Corporate Profile

Stage I(Millions of yen)
(FY)Management
Results

Financial Position

2011

2012

2013

2014

2015

2016

2017

¥1,360,023¥1,418,945¥1,384,806¥1,405,269¥1,338,102¥1,445,644¥1,515,252¥1,529,036¥1,567,969¥1,704,416¥1,751,114

Operating income

179,282

171,547

120,585

120,092

126,038

148,184

172,567

186,074

202,482

232,698

245,902

Ordinary income

162,835

146,090

93,901

96,204

102,509

123,066

144,587

163,373

182,521219,607240,341

Profit attributable to owners of parent

87,37883,57260,08449,90950,12959,451

76,843

100,185

117,722

131,815

155,874

3,634,489

3,758,386

3,710,423

3,780,699

3,868,411

4,390,074

4,548,822

5,077,148

5,374,277

5,570,750

6,301,288

660,486

759,489

682,536

634,479

642,809915,222

961,449

1,031,080

1,167,745

1,334,167

1,524,863

Tangible and intangible assets

1,961,811

2,047,715

2,105,822

2,252,287

2,304,809

2,503,977

2,526,139

2,788,633

2,968,975

2,967,788

3,318,928

Capital expenditures

340,462

165,023

61,971

229,394

111,755

72,355148,255

273,487

207,172

173,745

440,752

Depreciation and amortization

44,304

48,89050,28652,95453,23159,02256,03061,242

67,46071,35770,1671,550,420

1,733,559

1,746,719

1,740,048

1,743,411

2,120,225

2,040,071

1,976,150

2,226,236

2,287,489

2,604,656

Shareholders’ equity andaccumulated other comprehensive income

971,309

978,666

1,007,811

1,019,941

1,078,182

1,181,174

1,274,355

1,871,922

1,922,305

1,984,635

2,204,882

Cash flows from operating activities

97,762(40,996)

84,389185,055

148,161

99,684

189,903

30,34332,154

227,432

30,143

Cash flows from investing activities(392,160)(141,633)(64,834)(170,552)(124,353)(71,132)(44,056)(261,640)(239,719)(201,583)(365,464)

Cash flows from financing activities

276,136

182,215(19,762)(20,400)(18,649)(7,944)(123,713)

221,508

201,110

15,071

289,150

Cash and cash equivalents at year-end

63,49562,89162,73956,67561,726

101,588

127,337

118,960

109,966

148,546

100,708

Earnings per share (EPS) (Net income per share) (¥)

99.4

95.1

68.3

56.8

57.0

67.6

87.5

103.8

119.1

133.4

157.7

Book-value per share (BPS) (Net assets per share) (¥)

1,105.1

1,113.8

1,147.2

1,161.2

1,227.5

1,344.9

1,451.1

1,894.3

1,945.4

2,008.4

2,231.1

20.00

22.00

22.00

22.00

22.00

22.00

22.00

25.00

30.00

34.00

40.00

881,424

881,424

881,424

881,424

881,424

881,424

881,424

991,424

991,424

991,424

991,424

ROA (%)

5.53

5.06

3.41

3.39

3.55

3.66

4.07

4.10

4.13

4.58

4.56

ROE (%)

9.12

8.57

6.05

4.92

4.78

5.27

6.26

6.37

6.20

6.75

7.44

Debt/Equity (D/E) ratio (Times)

1.60

1.77

1.73

1.71

1.62

1.80

1.60

1.06

1.16

1.15

1.18

Equity ratio (%)

26.7

26.0

27.2

27.0

27.9

26.9

28.0

36.9

35.8

35.6

35.0

Total shareholder return ratio (%)

20.1

23.1

32.2

38.7

38.5

32.5

25.1

24.1

25.2

25.5

35.0

Consolidated companies

139

133

130

135

140

174

181

201

211

216

242

Companies accounted for by the equity method

44

45

42

44

45

47

52

56

64

67

71

No. of employees (Consolidated)

14,78815,47615,922

16,288

16,666

16,377

16,585

16,79917,205

17,713

18,625

Energy usage (Crude oil equivalent 1,000 kl/year)

342.3

367.7

241.2

240.7

209.3

210.1

217.7

226.6

241.4

252.4

257.2

CO2 emissions (Thousands of tons)

725.7

783.8

411.6

392.6

340.1

393.5

448.4

469.2

486.5

502.3

501.6

Water usage (Thousand m )

6,047

6,248

5,256

5,332

4,931

4,683

5,176

4,719

5,044

5,074

4,659

Revenue from operations

Total assets
Real property for saleInterest-bearing debt

Cash Flows

Indicators per
Share

Dividends (¥)
Number of outstanding shares (Thousands of shares)
Financial
Indicators

Group andEnvironmental
Data

3

Data Section

2010

Foundation for Value Creation

2009

Business Report

2008

Vision and Strategy

2007* Real property for sale = Real property for sale + real property for sale in progress + land for development + advances paid for purchases* Interest-bearing debt = Short-term debt + non-recourse short-term debt + commercial paper + bonds redeemable within one year + non-recourse bonds
redeemable within one year+ corporate bonds + non-recourse bonds + long-term debt + non-recourse long-term debt
* ROA = (Operating income + non-operating income)/average total assets over the period* ROE = Profit attributable to owners of parent/average shareholders’ equity over the period* Debt/Equity ratio = Interest-bearing debt/shareholders’ equity* Energy usage values up to and including fiscal 2008 have all been uniformly calculated with the current conversion factor (9.97 GJ/thousand kWh) to reflect achange in the conversion factor.
* Early application of accounting standards for special purpose companies from fiscal 2012 onward enabled SPCs in which Mitsui Fudosan invests to be newly
eligible for consolidation.

69

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

70

Financial Analysis(Billions of yen)

1,515.2 1,529.0 1,567.9

200

186.0

202.4

150
100

100

500
(FY)

0

155.8

2013 2014 2015 2016 2017

(FY)

0

229,335

4,836

5,025

1,586
1,182
1,509
559
16,579536,518
135,774

1,748
1,162
1,536
580
20,989558,165
138,338

Total Leased
Floor Space (1,000 m2)
OfficeBuildings

Owned

RetailProperties

Owned

ManagedManaged

Revenue
Revenue
Operating Income(Billions of yen)

(%)

600

536.5

558.1

150

500
400
300
200
100

0

138.3

135.7

5

120

4

90

3

60

2

2017 (FY)

3.9

4.0

4.4

3.8

3.3

2016

0

2017 (FY)

0

2009

10

11

12

13

Property Sales

499.6

Operating Income
100
80

300

60

200

40

83.0

65.2

2.2

14

15

16

17

(As of March 31)

0

Other

Subtotal

2017

2013
170
65
235

2014
83
100
183

2015
88
127
215

2016
321
69
390

2017
108
40
148

35,924589
2,554
Revenue50
Units38,478
Revenue639
Units315,635
Revenue
5,839
UnitsOperating Income 30,605
173,074
Revenue
Operating Income 34,680
488,710
Revenue
Operating Income 65,285

27,778479
1,220
2228,998501
275,988
4,208
31,167
223,619
51,843499,607
83,010Property Sales to Investors &Individuals (Overseas)
Total

Revenue
Units
Revenue
Units

Tokyo
Revenue
Metropolitan
Units
Area

(FY)

(Units)¥219,800
3,098
27,188609
246,989
3,707

Detached Housing

Subtotal

2016¥247,047
4,525
30,108675
277,156
5,200

Tokyo
Revenue
Metropolitan
Units
Area

20

2017 (FY)2017

Condominiums

Other

Fiscal Year-end Inventories(Property Sales to Individuals [Domestic])

Total

3.4

2016

(FY)

Property
Sales toIndividuals(Domestic)(Billions of yen)

400

Detached Housing

2.6(Millions of yen)

Income from property sales to individuals (domestic) increased
due to increased profit margins following positive sales conditions,although there was a decline in revenue due to a decrease in thereported number of units. Revenue and income from property
sales to investors and individuals (overseas) increased due togrowth in the sales of properties to investors, especially J-REITs.
Consequently, revenue from operations in the “Property Sales”
segment as a whole increased by ¥10.8 billion from the previous
fiscal year and operating income rose ¥17.7 billion.

2016

3.2

1

30

2016

Condominiums

Mitsui Fudosan Co., Ltd.

221,253(Billions of yen)

(FY)

71

RetailProperties

Vacancy Rate for Tokyo Metropolitan Area
Office Buildings (Non-Consolidated)

100

(FY)

¥307,840

Operating Income02013 2014 2015 2016 2017

¥298,685

Revenue from Operations

500

50

50

2013 2014 2015 2016 2017

76.8

100.1

117.7

131.8

OfficeBuildings
andRetailProperties

Total(Billions of yen) 488.7

200

150

1,000

0

172.5

232.6

Revenue

Other

Revenue from Operations(Billions of yen)

OfficeBuildings

Mitsui Fudosan Co., Ltd.

Data Section

1,500

250

1,704.4 1,751.1

245.9

2017

Foundation for Value Creation(Billions of yen)In fiscal 2017, revenue from operations in the “Leasing” segment
overall rose ¥21.6 billion from the previous fiscal year andoperating income increased ¥2.5 billion. This was mainly due toincreases in rents at existing office buildings, full-term
contributions to revenue from LaLaport SHONAN HIRATSUKA
which opened in fiscal 2016, and sales growth at existing retailproperties.
The vacancy rate for the Company’s office buildings located in
the Tokyo metropolitan area was 2.2% on a non-consolidated
basis as of March 31, 2018.

2016

(FY)

Business Report

Operating Income

Profit Attributable to
Owners of Parent(Millions of yen)

Leasing

Vision and Strategy

Revenue from Operations
2,000

Segment Information

the Group has been working to create value by carrying out thethree basic strategies: (1) customer-centered management, (2)business model innovation, and (3) full implementation of Groupmanagement.
Fiscal 2017 also saw steady expansion in the scale of projects
undertaken by the Company and areas in which they are located,
including the opening of TOKYO MIDTOWN HIBIYA in Tokyo’s
Chiyoda Ward, a project that brought together all the urban
mixed-use development expertise and experience cultivated by
the Company since the TOKYO MIDTOWN project in Roppongi,
and the capture of large-scale investment projects overseas, suchas 50 Hudson Yards (provisional name) in New York.
Furthermore, amid the advancement of workstyle reform, theCompany has captured changes in customers’ needs andperception of value and developed a new business strategy
through the full-scale deployment of our WORKSTYLING
multi-site shared offices for corporate clients, which provides
services that cater for a diverse range of workstyles, and thelaunch of Mitsui Shopping Park &mall, an E-commerce malllinked to real stores.
Through these varied initiatives, the Company has steadily
advanced forward-focused investment in both Japan andoverseas, improving financial soundness and capital efficiency.
This has also enabled the Company to exceed planned profit
growth, as shown by results such as four consecutive years ofrecord operating income and profit attributable to owners ofparent, and to continue preparations for the next stage of
growth.
As for the Mitsui Fudosan Group’s consolidated businessresults for the period, revenue from operations was ¥1,751.1
billion up ¥46.6 billion, or 2.7%, year-on-year. Operating income
was ¥245.9 billion up ¥13.2 billion, or 5.7%. Ordinary income was¥240.3 billion up ¥20.7 billion, or 9.4%. As a result of extraordinary losses including ¥8.0 billion impairment loss of property andequipment and a ¥7.5 billion loss on disposal of property andequipment, profit attributable to owners of parent was ¥155.8
billion, an increase of ¥24.0 billion, or 18.3%. As of March 31,
2018, total assets were ¥6,301.2 billion, and the balance ofinterest-bearing debt was ¥2,604.6 billion.

In fiscal 2017, the year ended March 31, 2018, the Japanese
economy continued to recover gradually, supported by a gradualincrease in capital investment amid improved corporate earnings,
as well as signs of an upturn in consumer spending driven by
improvement in the employment and wage environment.
However, there is a certain amount of uncertainty due to risinggeopolitical risk, as well as economic policy trends in the U.S.,
the U.K.’s decision to withdraw from the European Union, andother political and economic situations overseas, such as in China
and emerging nations.
In the real estate sector, the office building leasing market saw
low levels of vacancy rates in central Tokyo and major regional
cities and asking rents also continued to increase. The retailproperty leasing market saw signs of an upturn due to anincrease in inbound demand and other factors amid changes in
the way customers consume, such as the growing popularity of
E-commerce and increased spending on experiences. In regard
to property sales in the housing business, customer demand for
quality, convenient, high-added-value housing continued its
firming trend, underpinned by factors such as the continued
availability of low-interest financing and the effects ofgovernment policy, particularly regarding the tax system.
However, there were signs of an impact from rising housing
prices as the polarization of certain areas, etc., became moredefined. In the real estate investment market, the J-REIT market
saw the listing of a new J-REIT targeting logistics facilities andhotels, and REITs acquired a variety of real estate assets as the
Bank of Japan eased its monetary policy. This drove the asset
value of Japan’s 60 listed J-REITs to exceed ¥17 trillion as ofMarch 31, 2018. Meanwhile, the asset value of Japan’s 25
open-ended private placement REITs surpassed ¥2.6 trillion. As aresult, the total asset value of J-REITs and open-ended private
placement REITs continued its steady growth, reaching ¥19.6
trillion.
In this operating environment, to continue to grow as acompany into the 2020s, the Mitsui Fudosan Group is pursuing(1) further strengthening of domestic business competitivenessand (2) dramatic growth in overseas business as the pillars ofInnovation 2017 (Stage II) Mitsui Fudosan Group’s Medium-TermBusiness Plan for FY2015 through FY2017. Based on this plan,

Corporate Profile

Operating Conditions and an Overview of Results

72

Revenue from operations in the “Property Management” segment overall rose ¥6.1 billion year on year, mainly due to an increase in
the number of car parks under management by the Mitsui Repark business (a car park leasing business) and number of brokerage
properties managed by the Mitsui Rehouse business (a “brokerage” business for individuals). However, operating income fell ¥5.1
billion, mainly due to a backswing from large-scale brokerage projects from corporate customers in the previous fiscal year and adecrease in construction management contracts.
(Millions of yen)

Revenue from Operations

Operating Income(Billions of yen)(Billions of yen)

400

347.6

353.8

Brokerage, AssetManagement, etc.

Revenue

30
10

Total

48.7

40
20

100

2016

2017

(FY)

0

2016

2017

(FY)

Operating Income

Operating Income
Revenue
Operating Income

2016¥259,736
32,55087,93521,288347,672
53,8382017¥263,420
28,91490,393
19,813353,813
48,727

Mitsui Home
Revenue from operations in the “Mitsui Home” segment overall rose ¥4.9 billion from the previous fiscal year and operating income
increased ¥0.5 billion. This was mainly due to increased sales in the “Reform/Renewal,” “Lease Management,” and “Housing-RelatedMaterials Sales” categories, alongside a decrease in expenses associated with the “New Construction” category, although there was adecrease in sales in the “New Construction” category.

Revenue from Operations

Operating Income(Billions of yen)(Billions of yen)

300
250

247.1

252.1

6
5

200

5.4

2

2017

(FY)

0

2016

2017

OrdersLease Management

Revenue

Housing-Related Material Sales

Revenue

Total
(FY)

Revenue
Operating Income

2017¥168,579
152,988
37,19645,09425,321
21,083
252,180
5,463

Net Assets

As of March 31, 2018, total assets were ¥6,301.2 billion, an
increase of ¥730.5 billion from the end of the previous fiscal year.
This was mainly due to an increase of ¥190.6 billion in real
property for sale (including real property for sale in progress, landfor development and advances paid for purchases). There was anincrease of ¥351.1 billion in tangible and intangible assets mainly
due to new investments.
Capital expenditures were ¥440.7 billion and depreciation andamortization was ¥70.1 billion.

Total net assets as of March 31, 2018 were ¥2,287.7 billion, an
increase of ¥230.7 billion compared with the end of the previous
fiscal year. This increase was mainly attributable to increases of¥112.1 billion in retained earnings and ¥92.7 billion in net
unrealized holding gains on securities.
The equity ratio as of March 31, 2018 fell to 35.0% from 35.6%
at the end of the previous fiscal year, while the debt/equity ratio
increased to 1.18 times from 1.15 times. Net assets per share had
increased to ¥2,231.15 from ¥2,008.47 as of the previous fiscal
year-end.

Liabilities
Interest-bearing debt (the total of short-term debt, non-recourse
short-term debt, commercial paper, bonds redeemable within
one year, non-recourse bonds redeemable within one year,
corporate bonds, non-recourse bonds, long-term debt, andnon-recourse long-term debt) stood at ¥2,604.6 billion on an
overall consolidated basis as of March 31, 2018, an increase of¥317.1 billion from the end of the previous fiscal year.
Mitsui Fudosan has established committed lines of credit
totaling ¥280.0 billion with several financial institutions to ensure
access to funds and adequate liquidity. The Company had notaccessed these lines of credit as of the balance sheet date.
The current ratio as of March 31, 2018, was 181%, a decrease
compared to 192% on March 31, 2017.

Total Assets

ROA

ROE

(Billions of yen)

(%)

(%)

7,000
6,000
5,000

4,548.8

5,077.1 5,374.2

5,570.7

6,301.2

5

4.10

4.13

4.58

4.56

2013 2014 2015 2016 2017

(FY)

0

7.44

4
3
2

1

1,000

6.20

6.75

5

2

2,000

6.26

6.37

6

3

3,000

8
7

4

4,000

0

4.07

Foundation for Value Creation

2016

1

Orders
Revenue

Reform/Renewal

3

100
0

New Construction

4

150
50

4.9

Revenue2016¥169,246
151,384
36,722
41,18522,867
18,359247,195
4,907

AssetsBusiness Report(Millions of yen)
(FY)

Consolidated Financial Position

Vision and Strategy

Revenue

53.8

50

200

0

Property
Management

60

300

(FY)

Corporate Profile

Management12013 2014 2015 2016 2017

(FY)

2013 2014 2015 2016 2017

0

(FY)

Other
As a result of factors including strong performance by the “Hotels & Resorts” business and full-term contributions to revenue fromhotels opened in the previous fiscal year, revenue from operations in the “Other” segment as a whole increased ¥3.0 billion year on
year and operating income increased ¥0.8 billion.

Interest-Bearing Debt

Debt/Equity Ratio

Net Assets (Other than NonControlling Interests) and Equity Ratio(Billions of yen)(Times)(Billions of yen)

2.0

4,000
3,500

3,000

Operating Income

2,500(Billions of yen)(Billions of yen)

2,000

100

84.3

87.3

8

80

6

60

2

20

73

(FY)

4

40
0

5.9

(Millions of yen)

6.8

2016

2017

Mitsui Fudosan Co., Ltd.

(FY)

0

2016

2017

Facility Operations

Revenue

Other

Revenue

Total
(FY)

Revenue
Operating Income

2016¥60,348
23,972
84,3205,994

2017¥60,120
27,22687,3466,849

2,040.0 1,976.1

2,226.2 2,287.4

1.5

1,500
1,000
500
0

2013 2014 2015 2016 2017

(FY)

1.60
1.06

1.16

1.15

3,000

1.18

2,500

1.0

2,000

0.5

1,000

0

1,500
500

2013 2014 2015 2016 2017

(FY)

0

28.0
1,325.4

35.8

Equity ratio (right axis)

35.6

36.9

35.0

(%)

40

35

1,932.0 1,989.0 2,056.9

2,287.7 30
25

Data Section

Revenue from Operations

2,604.6

Net assets (left axis)

20
15
10
5

2013 2014 2015 2016 2017 (FY) 0

Mitsui Fudosan Co., Ltd.

74

Outlook for Fiscal 2018 (Year Ending March 31, 2019)

As of March 31, 2018, cash and cash equivalents were ¥100.7
billion, a decrease of ¥47.8 billion from the end of the previous
fiscal year.

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

In fiscal 2018, Mitsui Fudosan is expected to report revenue fromoperations of ¥1,870.0 billion, up ¥118.8 billion year on year.
Operating income is estimated to climb ¥4.0 billion to ¥250.0
billion and ordinary income is estimated to increase ¥7.3 billion
to ¥233.0 billion. Profit attributable to owners of parent is
forecast to decline ¥2.8 billion to ¥153.0 billion.

Financing activities provided net cash of ¥289.1billion. Cash was
mainly provided by proceeds from debt.

Segment Forecasts

Investing activities used net cash of ¥365.4 billion. The main useof cash was purchases of property and equipment of ¥360.0
billion.

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Free Cash Flows(Billions of yen)(Billions of yen)(Billions of yen)

200

227.4

189.9

100

200

0

100

150

-100

100

-200

50

32.1

30.1

2013 2014 2015 2016 2017

-300
(FY)

-400

145.8
25.8

0

-261.6-239.7-100-201.5-365.42013 2014 2015 2016 2017-231.2 -207.5

-200
-300
(FY)

-400

-335.32013 2014 2015 2016 2017

(FY)
* Free cash flow = Cash flows from operating
activities + cash flows from investing activities

Rental Properties(Millions of yen)
(FY)

2017

Rental Properties
Carrying Amount Recorded on theConsolidated Balance Sheets
Balance as of the Beginning of the Period
Increase (Decrease) During the Period
Balance as of the End of the PeriodMarket Value at the End of the Period
Difference¥2,648,353 ¥2,645,056(3,296)315,651
2,645,056 2,960,708
4,828,439 5,436,150
2,183,382 2,475,441

sheets, the change during the fiscal year, and the market value ofthese properties are as shown above.

Risk Information
The operations of the Mitsui Fudosan Group are subject to anumber of risks, some of which are outlined below along withissues that may not necessarily constitute risk factors but may stillinfluence investor decisions. These risk factors and issues are
identified from among matters that may have a bearing on theGroup’s business performance and operating conditions, as wellas financial position and other aspects. The forward-looking
statements in this report were determined by the Group as ofMarch 31, 2018.

Trends in Economic Conditions

Interest Rates
around 35% of profit attributable to owners of parent.
Taking into consideration a comprehensive range of factors
including the Company’s strong performance in fiscal 2017 andthe aforementioned dividend policy, Mitsui Fudosan has decided
to pay an annual dividend of ¥40 per share, an increase of ¥4 pershare compared to the initial announcement of ¥36. This
comprises the ¥18 interim dividend already paid, and a fiscal
year-end dividend of ¥22.

Higher interest rates in the future could increase the Mitsui
Fudosan Group’s funding costs, raise the returns investors expectfrom real estate investments and reduce demand amongindividuals for housing, and may therefore exert a material
impact on the Mitsui Fudosan Group’s performance and thevalue of its assets. Moreover, the interest rates applicable tointerest-bearing debt may be affected by changes in the Group’s
credit ratings.

Changes in Real Estate Taxes
Future changes in real estate taxes that increase the cost ofowning, acquiring or selling real estate or reduce consumer

75

Mitsui Fudosan Co., Ltd.

Changes in Real Estate and Finance Laws
Future changes in laws or regulations relevant to Mitsui
Fudosan’s businesses, including the Building Standard Law, theCity Planning Act and the Financial Instruments and Exchange
Law, could have consequences such as producing new
obligations, increasing costs and limiting asset ownership rights.
These factors may exert a material impact on the Mitsui FudosanGroup’s performance by reducing the value of its assets andlimiting the scope of its operations.

Natural Disasters, Environmental Issues and Other
Extraordinary Phenomena
Natural disasters, environmental issues, soil contamination andother factors, including any defect in real estate and property,
may lead to the damage of assets held by the Mitsui FudosanGroup or give rise to a performance warranty obligation. This inturn may affect the Group’s performance and the value of its
assets.

Data Section

Trends in economic conditions influence demand for the officebuildings and retail properties that the Group owns and manages
in Japan and overseas, while employment and economic
conditions also influence demand among individuals for housing.
Other factors include trends in real estate market conditions,which can trigger a slump in land and other property prices. A
downturn in economic conditions in Japan or overseas may
therefore exert a material impact on the Mitsui Fudosan Group’s
performance and the value of its assets. Moreover, a drop in thevalue of investment securities held may cause the Group’s
financial condition to deteriorate.

willingness to purchase housing may exert a material impact on the
Mitsui Fudosan Group’s performance and the value of its assets.

Real Estate Development and Other Related Activities

Shareholder Returns
Mitsui Fudosan makes every effort to maintain and increase
dividends within the framework of business conditions,performance and its financial situation, while aiming to expand
retained earnings for the purpose of investing in high-margin
businesses to further enhance corporate value. Recently theCompany has resolved to undertake the stable payment ofdividends in order to strengthen shareholder returns while also
flexibly repurchasing its own shares in a bid to enhance capitalefficiency. It is aiming for a total shareholder return ratio of

Taking into consideration a comprehensive range of factors
including the outlook for fiscal 2018 and the aforementioned
dividend policy, the Company plans to pay a cash dividend of¥40 per share for the fiscal year ending March 31, 2019,
including an interim dividend of ¥20 per share.

Foundation for Value Creation

Mitsui Fudosan and some of its consolidated subsidiaries haverental properties including office buildings and retail properties in
the Tokyo metropolitan area and other areas. Profit on suchproperties amounted to ¥130,099 million in fiscal 2016 (rental
revenue is reported in revenue from operations and rental expenses
are reported in cost of revenue from operations) and there was an
impairment loss of ¥14,205 million and a loss on disposal ofproperty and equipment of ¥829 million (loss on disposal ofproperty and equipment and impairment loss are reported as otherexpenses). In fiscal 2017, profit on such properties amounted to¥131,013 million and there was an impairment loss of ¥7,583 million
and a loss on disposal of property and equipment of ¥6,350 million.
The carrying amount recorded on the consolidated balance

2016

Dividends

Business Report

0

30.3

-44.0

Leasing: Increases in overall revenue from operations of ¥41.8
billion and operating income of ¥1.6 billion are forecast, mainly
due to full-term contributions from TOKYO MIDTOWN HIBIYA,
which finished construction in fiscal 2017, and 55 Hudson Yards(provisional name), which is due to finish construction in fiscal
2018.
Property Sales: Overall revenue from operations is expected toincrease by ¥35.3 billion and operating income by ¥3.9 billion asa result of increases in revenue and income, mainly due toproperty sales to investors and individuals (overseas), although
there is an expected decrease in revenue due to factors such as adecline in reported number of units for property sales toindividuals (domestic) in fiscal 2018 compared to fiscal 2017.
Management: Revenue from operations in the “Management”
segment as a whole is projected to improve ¥31.1 billion andoperating income is forecast to increase ¥2.2 billion, mainly due
to strong performance by the Mitsui Rehouse business (a“brokerage” business for individuals) and the Mitsui Reparkbusiness (a car park leasing business).
Other: In the “Other” segment as a whole, revenue fromoperations is anticipated to increase ¥2.6 billion but operating
income is expected to decrease ¥2.8 billion. While existing Hotel& Resorts business is forecast to remain strong, this decline inoperating income largely reflects the impact of expenses
associated with the opening of new hotels.

Vision and Strategy

Operating activities provided net cash of ¥30.1 billion. Cashprovided included income before income taxes of ¥224.7 billion
and depreciation and amortization of ¥70.1 billion. This morethan offset cash used, including an increase in real property forsale and advances paid for purchases, which used net cash of¥217.3 billion.

250

Corporate Profile

Consolidated Cash Flows

Instances where the Mitsui Fudosan Group engages in real estatedevelopment and other activities, excluding those cases where
the Group’s directors and employees are directly involved, may
be affected by many factors outside of our control including
contracting with third parties with specialized skills such as
construction companies, increases in the price of land anddevelopment costs, and inadequacies relating to such key
activities as construction. These factors may then lead to an
unexpected substantial increase in expenditure or give rise to thedelay or suspension of a project. Accordingly, unforeseen
circumstances may exert a material impact on the Mitsui FudosanGroup’s performance.

Mitsui Fudosan Co., Ltd.

76

Strategic Investment ShareholdingsBook Value of Shares(Millions of Yen)

Reason for Holding

Stock Name

Number of
Shares HeldBook Value of Shares(Millions of Yen)

Reason for Holding

30,757,200

321,639

Oriental Land Co., Ltd. is an important client and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy,
including maintaining and strengthening partnerships with tenants and others

Seven & i Holdings Co., Ltd.

815,300

3,610

From a medium- to long-term perspective, this investment in Seven & i Holdings Co.,
Ltd. will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with tenants and others

Toray Industries, Inc.

19,460,720

20,037

From a medium- to long-term perspective, this investment in Toray Industries, Inc.
will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with tenants and others

Sumitomo Mitsui TrustHoldings, Inc.

816,996

3,560

From a medium- to long-term perspective, this investment in Sumitomo Mitsui
Trust Holdings, Inc. will be beneficial in terms of management strategy, including
maintaining and strengthening partnerships with financial institutions

Tokyo Broadcasting System
Holdings, Inc.

5,713,728

12,920Tokyo Broadcasting System Holdings, Inc. is a business partner and from a mediumto long-term perspective, this will be a beneficial investment in terms of management
strategy

Credit Saison Co.,Ltd.

1,570,800

2,788

Credit Saison Co.,Ltd. is an important client, and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy

MARUI GROUP CO., LTD.

1,374,600

2,778

From a medium- to long-term perspective, this investment in MARUI GROUP CO.,LTD. will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with tenants and others

MS&AD Insurance Group
Holdings, Inc.

3,473,869

11,471

From a medium- to long-term perspective, this investment in MS&AD InsuranceGroup Holdings, Inc. will be beneficial in terms of management strategy, including
maintaining and strengthening partnerships with financial institutions

The Gunma Bank, Ltd.

4,047,004

2,536

From a medium- to long-term perspective, this investment in The Gunma Bank,
Ltd. will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with financial institutions

Sumitomo Mitsui Financial
Group, Inc.

2,492,257

11,307

From a medium- to long-term perspective, this investment in Sumitomo Mitsui
Financial Group, Inc. will be beneficial in terms of management strategy, including
maintaining and strengthening partnerships with financial institutions

TOBU RAILWAY CO., LTD.

784,600

2,518

From a medium- to long-term perspective, this investment in TOBU RAILWAY CO.,LTD. will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with tenants and others

Daiwa House Industry Co.,Ltd.

2,565,300

10,183

Daiwa House Industry Co., Ltd. is a business partner and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy

Keisei Electric Railway Co.,Ltd.

748,500

2,460

Keisei Electric Railway Co., Ltd. is a business partner and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy

Taisei Corporation

1,661,200

8,800

Taisei Corporation is an important client, and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy

Sumitomo Mitsui
Construction Co., Ltd.

3,275,365

2,057

SHIMIZU CORPORATION

8,554,000

8,170

SHIMIZU CORPORATION is an important client, and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy

Sumitomo Mitsui Construction Co., Ltd. is an important client, and from a medium- tolong-term perspective, this will be a beneficial investment in terms of management
strategy

Seibu Holdings Inc.

1,088,000

1,991

East Japan Railway
Company

673,100

6,590

East Japan Railway Company is a business partner and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy

Seibu Holdings Inc. is a business partner and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy

The Japan Steel Works, LTD.

560,541

1,902

T&D Holdings, Inc.

3,129,560

From a medium- to long-term perspective, this investment in The Japan Steel Works,
LTD. will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with tenants and others

IHI Corporation

513,200

1,752

IHI Corporation is a business partner and from a medium- to long-term perspective,
this will be a beneficial investment in terms of management strategy

Mebuki Financial Group,Inc.

4,229,190

1,749

From a medium- to long-term perspective, this investment in Mebuki Financial Group,
Inc. will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with financial institutions

Taiheiyo Cement
Corporation

384,400

1,451

From a medium- to long-term perspective, this investment in Taiheiyo Cement
Corporation will be beneficial in terms of management strategy, including
maintaining and strengthening partnerships with tenants and others

The Chiba Bank, Ltd.

FUJIFILM Holdings
Corporation

4,931,541

5,611,250

1,092,600

5,304

4,879

4,783

From a medium- to long-term perspective, this investment in T&D Holdings, Inc.
will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with financial institutions
Kajima Corporation is an important client and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy
From a medium- to long-term perspective, this investment in The Chiba Bank, Ltd.
will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with financial institutions

4,678

From a medium- to long-term perspective, this investment in FUJIFILM Holdings
Corporation will be beneficial in terms of management strategy, including
maintaining and strengthening partnerships with tenants and others

Toshiba Corporation

14,390,500

4,532

Toshiba Corporation is a business partner and from a medium- to long-term
perspective, this will be a beneficial investment in terms of management strategy

Asahi Kasei Corp.

3,247,084

4,460

From a medium- to long-term perspective, this investment in Asahi Kasei Corp. will bebeneficial in terms of management strategy, including maintaining and strengthening
partnerships with tenants and others

Mitsui Chemicals, Inc.

Mitsui Fudosan Co., Ltd.

1,148,080

3,786

From a medium- to long-term perspective, this investment in Mitsui Chemicals,Inc. will be beneficial in terms of management strategy, including maintaining andstrengthening partnerships with tenants and others

Data Section

12,089Foundation for Value Creation

6,493,466

Business Report

Mitsui & Co., Ltd.

Mitsui & Co., Ltd. is a business partner and from a medium- to long-term perspective,
this will be a beneficial investment in terms of management strategy

Vision and Strategy

Oriental Land Co., Ltd.

Kajima Corporation

77

Number of
Shares Held

Corporate Profile

Stock Name

Deemed Shareholdings
Stock Name
Oriental Land Co., Ltd.

Number of
Shares Held
1,736,400

Book Value of Shares(Millions of Yen)
18,900Reason for Holding
We have the authority to direct the exercise of voting rights for these shares

Notes: 1. The amount of deemed shareholdings was excluded from the book value of investment securities held for purposes other than pure investment when selecting stocks in the order ofhigher book value.
2. The book value of deemed shareholdings is calculated by multiplying market value at the end of the fiscal year by the number of shares for which we hold the authority to exercise voting
rightsMitsui Fudosan Co., Ltd.

78

Major Properties
1 LEASING SEGMENT
Property Name (Location)

Type of
Property

Structure and Scale

Date ofConstruction
Completion/
Acquisition

Total Floor
Area (m2)

Total Land
Area (m2)

Building

Land

Other

Total

Ofﬁce

Steel-reinforced concrete structure
11 ﬂoors above ground3 basement ﬂoors

Feb.
1985

26,490Nihonbashi Mitsui Tower(Chuo Ward, Tokyo)

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
39 ﬂoors above ground4 basement ﬂoors

Jul.
2005

133,727

Steel construction / steel-reinforced
Ofﬁce, concrete structure (portion) / reinforced
concrete structure (portion)
Retailproperty 22 ﬂoors above ground4 basement ﬂoors

Oct.
2010

40,363

Steel construction / steel-reinforced
Office,Muromachi
concrete structure (portion) / reinforced
RetailFurukawa Mitsui Building
concrete structure (portion)
property,(Chuo Ward, Tokyo)
22 ﬂoors above ground
Residence
4 basement ﬂoors

Feb.
2014

Muromachi Chibagin
Mitsui Building(Chuo Ward, Tokyo)

Steel construction / steel-reinforced
Ofﬁce, concrete structure (portion) / reinforced
concrete structure (portion)
Retailproperty 17 ﬂoors above ground4 basement ﬂoors

Feb.
2014

Mitsui Fudosan
Nihonbashi 1-Chome
Co., Ltd.
Mitsui Building
T Tower(Chuo Ward, Tokyo)
Corporation

Steel construction / steel-reinforced
Ofﬁce,
concrete structure (portion)
Retail20 ﬂoors above groundproperty
4 basement ﬂoors

Jan.
2004

98,0638,185

15,352

58,848283

74,483

Mitsui Fudosan
Nihonbashi Astellas
Co., Ltd.
Mitsui Building
Lotus Estate(Chuo Ward, Tokyo)Co., Ltd.

Ofﬁce

Steel construction / reinforced
concrete structure / steel-reinforced
concrete structure
17 ﬂoors above ground2 basement ﬂoors

Jan.
2013

26,516

2,364

5,092

18,843

153

24,089Yaesu Mitsui Building(Chuo Ward, Tokyo)

Ofﬁce

Steel-reinforced concrete structure
10 ﬂoors above ground3 basement ﬂoors

Jun.
1965

22,520*1 1,865*1,*2

934

15,811*2

34

16,780

Kojun Building(Chuo Ward, Tokyo)

Steel-reinforced concrete structure
Retail10 ﬂoors above groundproperty
2 basement ﬂoors

Sep.
2004

13,662*1

1,316*1

2,423

7,832

40

10,29680,047

5,430

17,277

89,148183 106,609

4,372

23

122,472

30,301771*1,*2

10,578

5,621

2,941

31

25,088

7,487

8,398

268

251

147

Jul.
2010

Kasumigaseki Building(Chiyoda Ward, Tokyo)

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
36 ﬂoors above ground3 basement ﬂoors

Apr.
1968

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
20 ﬂoors above ground3 basement ﬂoors

Feb.
1987

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
14 ﬂoors above ground2 basement ﬂoors

Sep.
1972

Marunouchi Mitsui
Building(Chiyoda Ward, Tokyo)

Ofﬁce

Steel-reinforced concrete structure
11 ﬂoors above ground2 basement ﬂoors

Feb.
1981

20,373

1,851

3,144

23,69040

Jimbocho Mitsui
Building(Chiyoda Ward, Tokyo)

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
23 ﬂoors above ground2 basement ﬂoors

Mar.
2003

45,059*1

4,165*1

11,53325,13873

Toranomon Mitsui
Building(Chiyoda Ward, Tokyo)

Mitsui Fudosan Co., Ltd.

14,895*1

23,606

2,891*1

3,264

58,784

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
42 ﬂoors above ground4 basement ﬂoors

Feb.
2013

18,202*1

921*1

6,073

26,89034

32,998

Steel construction / steel-reinforced
Ofﬁce, concrete structure (portion) / reinforced
concrete structure (portion)
Retailproperty 30 ﬂoors above ground2 basement ﬂoors

Jun.
2014

89,282*1

7,965*1

22,76970,668707

94,145

Steel construction / steel-reinforced
Ofﬁce,
concrete structure (portion)
TOKYO MIDTOWN HIBIYA
Retail35 ﬂoors above ground(Chiyoda Ward, Tokyo)
property
4 basement ﬂoors

Feb.
2018

189,245

10,702

91,571 121,375

Gran Tokyo South Tower(Chiyoda Ward, Tokyo)

15,257

1,242

1,415

1,556*2

16,59732,292685

4

27

5,467 218,414

Hibiya U-1 Building(Chiyoda Ward, Tokyo)

Ofﬁce

Steel-reinforced concrete structure
26 ﬂoors above ground4 basement ﬂoors

Mar.
2018

50,848

5,065

1,619

62,33634

63,99135,934

ChorusProperty

Aoyama OM-SQUARE(Minato Ward, Tokyo)

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
25 ﬂoors above ground3 basement ﬂoors

Jul.
2008

14,603*1

2,040*1

2,768

8,903

47

11,71913,360Mitsui Fudosan Shiodome City Center
Co., Ltd.
(Minato Ward, Tokyo)

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
43 ﬂoors above ground4 basement ﬂoors

Jan.
2003

15,775*1

1,322*1

2,015

9,468

12

11,496

Mitsui FudosanCo., Ltd.
RP Beta Tokutei
Mokuteki Kaisha
RP Gamma
Tokutei
Mokuteki Kaisha TOKYO MIDTOWN(Minato Ward, Tokyo)
RP Eta Tokutei
Mokuteki Kaisha
RP Delta Tokutei
Mokuteki Kaisha
RP Epsilon Tokutei
Mokuteki Kaisha

Steel construction / steel-reinforced
Ofﬁce,
concrete structure (portion) / reinforced
Retailconcrete structure (portion)
property,
54 ﬂoors above ground
Residence
5 basement ﬂoors

Jan.
2007

281,901*1 34,465*1

47,812 148,163

Gate City Osaki
Ofﬁce(Shinagawa Ward, Tokyo)

Steel construction / steel-reinforced
concrete structure (portion) / reinforced
concrete structure (portion)
24 ﬂoors above ground4 basement ﬂoors

Jan.
1999

33,712*1

5,405*1

6,230

Shinjuku Mitsui Building
Ofﬁce(Shinjuku Ward, Tokyo)

Steel construction / reinforced
concrete structure (portion)
55 ﬂoors above ground3 basement ﬂoors

Sep.
1974

179,697

14,44916,168 186,668

1,049 203,885

Aug.
2006

164,525 67,499*2

7,506

20,199737

28,443Sep.
2006

69,081*1 72,013*2

3,562

26,022

304

29,888Feb.
2012

90,356

7,799

18,4797,198

729

26,407

11,487

17,49917,84433,736

Urban Dock LaLaport
Mitsui Fudosan
TOYOSU
Co., Ltd.
(Koto Ward, Tokyo)

Steel construction / steel-reinforced
Retail concrete structure (portion)
property 5 ﬂoors above ground
1 basement ﬂoor

Steel construction / reinforced
LAZONA Kawasaki plaza
Retail concrete structure (portion)(Kawasaki City, Kanagawa
property 6 ﬂoors above groundPrefecture)
1 basement ﬂoor
Yokohama Mitsui Building(Yokohama City,
Ofﬁce
Kanagawa Prefecture)

Steel construction / steel-reinforced
concrete structure (portion) / reinforced
concrete structure (portion)
30 ﬂoors above ground2 basement ﬂoors

13,448

1,667 197,644

92

19,771

26,874

Mitsui Fudosan
LaLaport YOKOHAMA
Co., Ltd.
(Yokohama City,
Kamoi Properties Kanagawa Prefecture)Co., Ltd.

Steel construction
Retail
6 ﬂoors above groundproperty
1 basement ﬂoor

Feb.
2007

244,154 102,002

12,312

17,073435

29,821

36,746LaLaport Ebina
Mitsui Fudosan(Ebina City, Kanagawa
Co., Ltd.
Prefecture)

Retail Steel construction
property 4 ﬂoors above ground

Oct.
2015

121,127 32,942*2

13,760―679

14,439Mitsui Fudosan Co., Ltd.

Data Section

Steel construction
23 ﬂoors above ground4 basement ﬂoors

145,494*1 8,264*1,*2

160,095

398

Sumitomo Mitsui Banking
Corporation Head Ofﬁce
Ofﬁce
Building(Chiyoda Ward, Tokyo)

Mitsui FudosanCo., Ltd.
Shin-Kasumigaseki
Building(Chiyoda Ward, Tokyo)

79

13,380*1

2,494

1,534*1200

Foundation for Value Creation

Mitsui Building No. 2(Chuo Ward, Tokyo)

25,439*1

43,778Business Report

32,2452,454

14,805

Vision and Strategy

Ofﬁce

Mar.
1929

Mitsui Fudosan Muromachi Higashi
Mitsui Building
Co., Ltd.
(Chuo Ward, Tokyo)

3,723*1

Mitsui Fudosan
Iidabashi Grand Bloom
Co., Ltd.
(Chiyoda Ward, Tokyo)

Steel-reinforced concrete structure
7 ﬂoors above ground2 basement ﬂoors

14,25682,001*1

Book Value (Millions of Yen)

1) Properties
Mitsui Main Building(Chuo Ward, Tokyo)

Oct.
2007

Corporate Profile

Company Name

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion) / reinforced
concrete structure (portion)
43 ﬂoors above ground4 basement ﬂoors

Gran Tokyo North Tower(Chiyoda Ward, Tokyo)

80

OfﬁceSteel-reinforced concrete structure /steel construction (portion)
14 ﬂoors above ground
1 basement ﬂoor

Jun.
1988

LaLaport TOKYO-BAY(Funabashi City, Chiba
Prefecture)

Reinforced concrete structure / steel
construction (portion) / steel-reinforced
Retailconcrete structure (portion)
property
10 ﬂoors above ground
1 basement ﬂoor

Apr.
1981

Mitsui Fudosan Logistics
Park Funabashi I(Funabashi City, Chiba
Prefecture)

Reinforced concrete structure / steel
Logistics
construction (portion)
facility
8 ﬂoors above ground

Oct.
2016

198,386

42,06026,370

3,851

1,400

31,622GATE SQUARE(Kashiwa City, Chiba
Prefecture)

Ofﬁce,
Retailproperty,
Residence

Shop & Ofﬁce
Steel-reinforced concrete structure
7 floors above ground 1 basement floor
Hotel & Residence
Reinforced concrete structure
14 floors above ground 1 basement floor

Apr.
2014

48,166

20,871

9,398

4,858

912

15,169LaLaport FUJIMI(Fujimi City, Saitama
Prefecture)
Nagoya Mitsui Building
Main Building (Nagoya
City, Aichi Prefecture)

Jan.
2018

280,529

48,91921,23573,9891,992

38,771

6,095

10,2202,823

857

13,901Feb.
2015

Steel construction
18 ﬂoors above ground2 basement ﬂoors

Mar.
1987

31,257

3,526

2,303

9,875

46

12,225Ofﬁce, Steel-reinforced concrete structure
11 ﬂoors above ground
Retailproperty 2 basement ﬂoors

Aug.
2007

37,834

2,976

271

14,242

1

14,516Ofﬁce

8-10 Moorgate
Mitsui Fudosan (London, U.K.)(U.K.) Ltd.
(Overseas
subsidiary)
1 Angel Court(London, U.K.)
三新奥特莱
斯股分
(Overseas
subsidiary)

MITSUI OUTLET PARK
LINKOU(New Taipei City, Taiwan)

Ofﬁce

Ofﬁce

Steel construction / reinforced
concrete structure (portion)
9 ﬂoors above ground
1 basement ﬂoor

Steel construction / reinforced
concrete structure (portion)
27 ﬂoors above ground2 basement ﬂoors

Reinforced concrete structure /steel construction (portion)
Retail2 ﬂoors above groundproperty(3 ﬂoors above ground in part)
1 basement ﬂoor

May.
2014

16,7502,040*2

4,900

5,729*2

2,220

12,850Mar.
201745,384

3,925*2

14,820 12,811*2

9,166

36,798Jan.
2016

53,200 47,138*2

12,366―

4,082

16,44854,421―

54,421

2) Others

RetailSteel construction
Retail 4 ﬂoors above groundproperty Parking Tower
Steel construction
5 ﬂoors above ground

183,858 152,055

19,46810,365

1,315

31,148Mitsui FudosanCo., Ltd.
M3 Real Estate Chuo Ward, Tokyo
Land
Co., Ltd.
Murosan Real
Estate Co., Ltd.

Plannedconstruction
site

―

―

3,643

―

―

―

6,752

― 157,531― 157,531――

36,213*2―

15,067―

15,067

Plannedconstruction
site

―

―

3,347*1―

47,818―47,818Plannedconstruction
site

―

―

5,760*1― 111,799*2

Otemachi, Chiyoda Ward, Planned
construction
Tokyo
site
Mitsui Fudosan Land
Co., Ltd.
PlannedOta Ward, Tokyo
construction
Land
site

Mitsui Fudosan
New York City, New York,
America, Inc.
U.S.A.
(OverseasLandsubsidiary)
Mitsui Fudosan
New York City, New York,
America, Inc.
U.S.A.
(OverseasLandsubsidiary)

Nakanoshima Mitsui
Building (Osaka City,
Osaka Prefecture)

Ofﬁce

Steel construction / steel-reinforced
concrete structure (portion)
31 ﬂoors above ground2 basement ﬂoors

Aug.
2002

71,269

4,456

8,636

12,131

354

21,122

Note: Land includes leasehold. Other is tangible fi xed assets excluding buildings, land, and construction in progress.
*1 Data for the buildings and land is calculated based on the area in which the Group (the Company and its consolidated subsidiaries) maintains an equity interest.
*2 Land includes the area and amount corresponding to leasehold.

Yodoyabashi Mitsui
Building(Osaka City, Osaka
Prefecture)

Steel construction / steel-reinforced
Ofﬁce, concrete structure (portion) / reinforced
concrete structure (portion)
Retailproperty 16 ﬂoors above ground3 basement ﬂoors

Mar.
2008

38,838*1

3,087*1

5,952

14,556

109

20,6192 OTHERSEXPOCITY(Suita City,
Osaka Prefecture)

Retail Steel construction
property 1-3 ﬂoors above ground

Nov.
2015

MITSUI OUTLET PARKMARINE PIA KOBE
(Kobe City, Hyogo
Prefecture)

Factory Outlet
Steel construction
Retail 3 ﬂoors above groundproperty Annex
Steel construction
2 ﬂoors above ground

MITSUI OUTLET PARKSHIGA RYUO
(Gamo-gun, Shiga
Prefecture)

1st Stage
Steel construction
Retail 2 ﬂoors above groundproperty 2nd Stage
Steel construction
3 ﬂoors above ground

Jul.
2010

91,831 174,231*2

6,228

2,550*2

1,234

10,013

Sapporo Mitsui JP
Building(Sapporo City, Hokkaido)

Steel construction / steel-reinforced
Ofﬁce, concrete structure (portion) / reinforced
concrete structure (portion)
Retailproperty 20 ﬂoors above ground3 basement ﬂoors

Aug.
2014

47,714*1

3,861*1

10,2836,707

230

17,2211251 Avenue of theAmericas (New York City,
New York, U.S.A.)

Ofﬁce

Steel construction
54 ﬂoors above ground4 basement ﬂoors

Dec.
1986

215,308

9,232

33,60725,0896

58,703

Steel construction
26 ﬂoors above ground
1 basement ﬂoor

Sep.
2008

19,472

1,082

15,503

12,601―

28,105

Reinforced concrete structure
12 ﬂoors above ground5 basement ﬂoors

Jan.
2012

45,6994,024*2

28,237

4,089*2―

32,326

Reinforced concrete structure
7 ﬂoors above ground
1 basement ﬂoor

Mar.
2012

7,957

1,122

3,573

9,236

647

13,456

Mitsui Fudosan
5 Hanover Square(U.K.) Ltd.
(London, U.K.)(Overseas
subsidiary)

Mitsui Fudosan Co., Ltd.

Ofﬁce

61,961

78,20522,144

1,624―

11,0962,922

816

25,067

13,537

Property Name (Location)

Type of
Property

Structure and Scale

Date ofConstruction
Completion/
Acquisition

Mitsui FudosanCo., Ltd.
Mitsui Fudosan
HotelManagement
Co., Ltd.

Mitsui Garden Hotel
Ginza Premier
Other domestic hotels in
9 locations

Hotel

―

―

HALEKULANIOne other overseas hotel Hotelin another location――

MITSUIFUDOSANAMERICA, INC.
(Overseas
subsidiary)

Mitsui FudosanCo., Ltd.
Mitsui Fudosan
Golf Properties
Mitsuinomori Karuizawa
Co., Ltd.
Country Club
Nippon Midori Six other locations
Development
Co., Ltd.
Kyusin Kaihatsu
Inc.

Golf
courseMitsui Fudosan Tsunamachi Mitsui Club
Co., Ltd.
(Minato Ward, Tokyo)

State
guest
house

Floors: reinforced concrete
structure
Walls: masonry construction
2 ﬂoors above ground
1 basement ﬂoor

Total Floor
Area (m2)

Total Land
Area (m2)Book Value (Millions of Yen)
Building

Land

116,532*1 17,808*1,*2

12,801

8,323*2

491

21,616―

77,172 20,927*2

5,122

2,766*2

972

8,861

―

32,057 6,896,415*2

1,806

5,135*2

7,162

14,104

Feb.
1913

5,427

901

23,571

191

24,66428,563

Other

Total

Data Section

Homer Building
Ofﬁce(Washington D.C., U.S.A.)

Jul.
1999

222,506 172,240*2

CompanyName― 111,799

Foundation for Value Creation

Mitsui Fudosan
527 Madison Avenue
America, Inc.
(New York City, New York, Ofﬁce(Overseas
U.S.A.)
subsidiary)81

157,850

20

Business Report

Mitsui Fudosan
Otemachi Tatemono
Co., Ltd.
Nagoya Station Building(Nagoya City, Aichi
Prefecture)

1,820

Vision and Strategy

Park City Kashiwa-no-ha
Residence,Campus The Gate Tower West
Reinforced concrete structure
Retail(Kashiwa City, Chiba
36 ﬂoors above groundproperty
Prefecture)

23,558

Corporate Profile

LaLaport Mitsui Building(Funabashi City, Chiba
Prefecture)

Note: Land includes leasehold. Other is tangible fi xed assets excluding buildings, land, and construction in progress.
*1 Data for the buildings and land is calculated based on the area in which the Group (the Company and its consolidated subsidiaries) maintains an equity interest.
*2 Land includes the area and amount corresponding to leasehold.

Mitsui Fudosan Co., Ltd.

82

Corporate Data/Shareholders’ Information

About the Website(Parent company; as of March 31, 2018)

Corporate Data
Head Office:Date of Establishment:
Capital:Listing:
Number of Shares:
Number of Shareholders:
Transfer Agent:
Number of Employees:
Website:Mitsui Fudosan Group activities have been selected and included based on their importance for stakeholders.
For more information, please refer to the website and various other forms of communication issued.
Mitsui Fudosan Co., Ltd.
1-1, Nihonbashi-Muromachi 2-chome,
Chuo-ku, Tokyo 103-0022, Japan
July 15, 1941
¥339,766 million
Tokyo Stock Exchange (Ticker: 8801)
Authorized: 3,290,000,000
Issued and outstanding: 991,424,727
32,959Sumitomo Mitsui Trust Bank, Limited
1,526 (Consolidated 18,625)
https://www.mitsuifudosan.co.jp/english

Corporate Website
https://www.mitsuifudosan.co.jp/english/

Shareholder Composition (Shareholding Ratio)
Securities Companies

1.62％

Treasury Stock

0.32％

Financial

Non-Financial

Shareholder andInvestor Information

Initiatives for Society
and the Environment(Detailed CSR Information)

Contains materials related to financial results,
audio and video versions of results briefings
and information for shareholders and investors.

Introduces initiatives for society and theenvironment based on the Mitsui FudosanGroup’s Group Vision.
View the report for detailed commentary on
CSR activities.

https://www.mitsuifudosan.co.jp/english/corporate/ir/

https://www.mitsuifudosan.co.jp/english/corporate/csr/

Individuals

4.36％

Other Japanese Companies

7.16％

Non-Japanese

51.40％

Financial Institutions

35.13％

Status of Large Shareholders
Shareholder
The Master Trust Bank of Japan, Ltd. (Trust account)
Japan Trustee Services Bank, Ltd. (Trust account)
State Street Bank West Client-Treaty 505234
Japan Trustee Services Bank, Ltd. (Trust account 5)
State Street Bank and Trust Company 505223
State Street Bank West Pension Fund Clients Exempt 505233
State Street Bank and Trust Company
JPMorgan Chase Bank 385628
JPMorgan Chase Bank 385632
Sumitomo Mitsui Banking Corporation
Total

Number of Shares Held(Thousands)

Percentage ofTotal Shares Issued

83,093

8.41

20,1432.04

70,777
18,82018,326
17,397
16,74915,131
15,11014,837290,385

7.16
1.90
1.85
1.76
1.69
1.53
1.53
1.50

29.38

Financial Data
https://www.mitsuifudosan.co.jp/english/corporate/ir/finance/

Financial Results Materials
https://www.mitsuifudosan.co.jp/english/corporate/ir/library/er/

IR News
https://www.mitsuifudosan.co.jp/english/corporate/ir/library/news/

83

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

84