MITSUI FUDOSAN

INTEGRATED REPORT 2020

FINANCIAL SECTION
Year ended March 31, 2020

MITSUI FUDOSAN

INTEGRATED REPORT 2020

FINANCIAL SECTION
Year ended March 31, 2020

Contents

Consolidated Financial Statements

02

Notes to Consolidated Financial Statements

08

Independent Auditor’s Report

41

Appendix50

1. History50

2. Mitsui Fudosan’s Businesses51

3. Current Subsidiaries and Affiliates

53

4. Major Properties

58

5. Strategic Shareholdings

63

Mitsui Fudosan Co., Ltd.

01

Consolidated Financial Statements
Consolidated Balance Sheets
Mitsui Fudosan Co., Ltd. and its Subsidiaries
As of March 31, 2020, 2019 and 2018

Thousands of U.S.
dollars (Note 1)

Millions of yen

2020

ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 4)
Marketable securities (Note 4, 5)
Notes and accounts receivable - trade (Note 4)
Short-term loans receivable
Allowance for doubtful accounts
Inventories (Note 8, 13)
Advances paid for purchases (Note 9)
Equity investments in properties for sale (Note 4, 5)
Other current assets
Total current assets

PROPERTY and EQUIPMENT, at cost:
Land (Note 7, 13)
Buildings and structures (Note 7, 13, 23)
Machinery and equipment (Note 23)
Construction in progress
Accumulated depreciation
Net property and equipment (Note 24)

INVESTMENTS and OTHER ASSETS
Investments in unconsolidated subsidiaries and affiliatedcompanies
Investment securities (Note 4, 5)
Non-current loans and accounts receivable
Allowance for doubtful accounts
Lease deposits (Note 4, 10)
Net defined benefit asset (Note 12)
Deferred income taxes (Note 11)
Deferred tax assets on land revaluation
Other
Total investments and other assets
Total assets
See accompanying notes.

¥  179,472
219
38,90818,543(300)
1,901,756
28,542
6,683
219,7442,393,567

2,216,701
1,965,267
255,479
177,433
4,614,880(896,277)
3,718,603

2019¥157,682
949
45,276
18,297(409)
1,635,127
26,2606,701
227,356
2,117,239

2,146,037
1,796,828
218,137
162,122
4,323,124(846,732)
3,476,392

2018¥100,708
182
41,186
17,519(412)
1,527,320
27,801
6,723
177,321
1,898,348

2,086,195
1,551,222
194,812
270,965
4,103,194(810,521)
3,292,673

252,736
215,175
197,844635,320
657,511590,114161,304
117,167
98,451(1,065)(1,139)(1,225)
145,414140,571
138,565
28,994
31,295
17,97525,944
24,42825,6893
3
35
34,53924,09026,255
1,283,189
1,209,101
1,093,703¥7,395,359 ¥6,802,732 ¥6,284,724

2020$ 1,649,104
2,012
357,512170,385(2,757)
17,474,557
262,262
61,4082,019,149
21,993,632

20,368,474
18,058,137
2,347,505
1,630,368
42,404,484(8,235,569)
34,168,915

2,322,301
5,837,729
1,482,165(9,786)
1,336,157
266,416
238,39028
317,366
11,790,766$67,953,313

Thousands of U.S.
dollars (Note 1)

Millions of yen

2020

LIABILITIES AND NET ASSETSCURRENT LIABILITIESBank loans (Note 4, 13)Commercial paper (Note 4, 13)Long-term debt due within one year (Note 4, 13)Notes and accounts payable - trade (Note 4)
Accrued expenses
Accrued income taxes
Advances and deposits received
Other current liabilities (Note 14)
Total current liabilities
LONG-TERM LIABILITIESNet defined benefit liability (Note 12)
Allowance for directors’ and corporate auditors’ retirement
benefits
Long-term debt due after one year (Note 4, 13)
Deposits from tenants (Note 4, 15)Deferred income taxes (Note 11)
Deferred tax liabilities on land revaluation
Other long-term liabilities (Note 14)
Total long-term liabilities

2019

2018

2020

¥   46,309 ¥    55,326 ¥    70,523
173,000
114,000
125,000
220,633
283,792
253,834
147,075
126,868
123,989
43,88352,01240,42236,906
27,62544,952
258,207
264,626
263,260
113,749
185,110
141,637
1,039,762
1,109,359
1,063,617$  425,517
1,589,635
2,027,318
1,351,420
403,225
339,116
2,372,572
1,045,199
9,554,002

46,19643,50442,737424,479

801
3,041,175
436,595
147,786
151,544
44,975
3,869,072

712
2,453,493
424,335
154,941
151,546
44,037
3,272,568

716
2,155,299
403,413
134,521
151,701
45,0202,933,407

7,360
27,944,271
4,011,716
1,357,953
1,392,484
413,258
35,551,521

339,767

339,767

339,767

3,121,998

372,163
1,070,240

403,269
962,154409,764
834,498

3,419,673
9,834,053(14,365)
1,767,805(21,088)1,684,102(6,079)1,577,950(131,995)
16,243,729

319,993334,612298,297
(222)
72
(242)
330,305
330,538
330,923(14,794)(16,334)(3,956)
5,593
9,523
1,910
640,875
658,411
626,932
1,454
1,285
1,091
76,39177,007
81,7272,486,525
2,420,805
2,287,700¥7,395,359 ¥6,802,732 ¥6,284,724

2,940,301(2,040)3,035,055(135,937)
51,392
5,888,771
13,360701,930
22,847,790$67,953,313

CONTINGENT LIABILITIES (Note 26)
NET ASSETS (Notes 16, 17)
Shareholders’ equity
Common stock
Authorized – 3,290,000,000 shares
Issued – 9
 79,250,227 shares in 2020 and 991,424,727
shares in 2019 and 2018
Capital surplus
Retained earnings
Treasury stock – 8
 ,148,291 shares in 2020, 9,187,225 shares in2019 and 3,199,947 shares in 2018
Total shareholders' equity
Accumulated other comprehensive income (loss)
Net unrealized holding gains on securities
Deferred losses on hedging instruments
Reserve on land revaluation
Foreign currency translation adjustments
Accumulated adjustments for retirement benefit
Total accumulated other comprehensive income
Subscription rights to shares (Note 18)
Non-controlling interests
Total net assets
See accompanying notes.

02

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

03

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Mitsui Fudosan Co., Ltd. and its Subsidiaries

Mitsui Fudosan Co., Ltd. and its Subsidiaries

For the years ended March 31, 2020, 2019 and 2018

Thousands of U.S.
dollars (Note 1)

Millions of yen

2020

Revenue from operations (Note 24)
Cost of revenue from operations
Selling, general and administrative expenses
Operating income (Note 24)
Interest, dividends and miscellaneous income (Note 20)
Interest expense
Other expenses (Note 19, 21)
Equity in net income of affiliated companies
Income before income taxes
Income taxes (Note 11)
Current
DeferredTotal
Net income
Net income attributable to non-controlling interests
Net income attributable to shareholders of the Company

2019

2018

For the years ended March 31, 2020, 2019 and 20182020

¥1,905,643 ¥1,861,195 ¥1,751,114(1,435,903) (1,423,443) (1,339,483)(189,122)(175,604)(165,729)
280,618
262,148245,90227,422
15,112
9,720(29,383)(28,284)(25,672)(23,155)(21,829)(20,460)
5,715
14,896
15,258261,217
242,043
224,748$17,510,273(13,194,000)(1,737,774)
2,578,499
251,971(269,990)(212,763)
52,5132,400,230

77,321
69,51870,994(799)
2,388(4,223)76,522
71,906
66,771
184,695
170,137
157,977(722)(1,476)(2,103)¥  183,973 ¥  168,661 ¥  155,874

710,475(7,341)
703,134
1,697,096(6,634)$ 1,690,462

Thousands of U.S.
dollars (Note 1)

Millions of yen

Net income
Other comprehensive income (loss):
Net unrealized holding gains (losses) on securities
Deferred gains on hedging instruments
Reserve on land revaluation
Foreign currency translation adjustments
Adjustments for retirement benefit
Equity in other comprehensive income (loss) of affiliatedcompanies
Total other comprehensive income (loss)
Total comprehensive income
Comprehensive income attributable to:Shareholders of the Company
Non-controlling interests
Total

2020

2019

2018

¥184,695¥170,137¥157,977$1,697,096

2020(14,550)
(153)
(712)
(3,983)36,383322(8,405)
7,670

92,79986(1,047)
1,149
8,421

(133,695)(1,406)(6,542)(36,598)

1,707(17,691)¥167,004(4,569)31,401¥201,538

2,287
103,695¥261,672

15,685(162,556)$1,534,540¥166,471
533¥167,004¥200,524
1,014¥201,538¥259,132
2,540¥261,672$1,529,643
4,897$1,534,540

2020

2019

2018

¥2,480.4¥2,384.9¥2,231.2$22.792

188.4
188.2
44.0

171.3
171.2
44.0

157.8
157.6
40.0

1.731
1.729
0.404

See Note 22.

See accompanying notes.

PER SHARE INFORMATIONYen

Net assets per share*
Net income per share— Basic— Diluted
Cash dividends

U.S. dollars (Note 1)

2020* Net assets per share information does not include subscription rights to shares and non-controlling interests.
See accompanying notes.

04

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

05

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Cash Flows

Mitsui Fudosan Co., Ltd. and its Subsidiaries

Mitsui Fudosan Co., Ltd. and its Subsidiaries

For the years ended March 31, 2020, 2019 and 2018

For the years ended March 31, 2020, 2019 and 2018

BALANCE AT APRIL 1, 2017
Cash dividends paid

Deferred
Accumulated
Foreign
Net unrealized losses on Reserve on currency adjustments Subscription
Noncontrollingholding gains on hedging
landtranslation for retirement rights toinstruments revaluation adjustments
benefitinterests
securities
sharesShares ofcommonstock(thousands)

Commonstock

CapitalsurplusRetainedearnings

991,425¥339,767¥413,231¥722,364¥(6,245)¥205,521¥(357)¥323,828¥(7,076)¥-6,397¥1,104¥71,192¥2,056,932

-

-

-

(35,573)

-

-

-

-

-

-

-

-

(35,573)

Treasurystock

Total net assets

Net income attributable to shareholders of the Company

-

-

-

155,874

-

-

-

-

-

-

-

-

155,874

Reversal of reserve on land revaluation, net of tax

-

-

-

(8,155)

-

-

-

7,095

-

-

-

-

(1,060)Purchase of treasury stock

-

-

-

-

(22)

-

-

-

-

-

-

-

(22)

Sales of treasury stock

-

-

(12)

-

188

-

-

-

-

-

-

-

176

Change in the Company's equity due to transactions with noncontrolling interests

-

-

(287)

-

-

-

-

-

-

-

-

-

(287)

Capital transactions with non-controlling interests--(3,180)

-

-

-

-

-

-

-

-

-

(3,180)Transfer of retained earnings to capital surplus

-

-

12

(12)

-

-

-

-

-

-

-

-

-

Net unrealized holding gains on securities

-

-

-

-

-

92,776

-

-

-

-

-

-

92,776

Deferred gains on hedging instruments

-

-

-

-

-

-

115

-

-

-

-

-

115

Foreign currency translation adjustment

-

-

-

-

-

-

-

-

3,120

-

-

-

3,120
8,307

Defined benefit pension plans

-

-

-

-

-

-

-

-

-

8,307

-

-

Subscription rights to shares

-

-

-

-

-

-

-

-

-

-

(13)

-

(13)

Non-controlling interests

-

-

-

-

-

-

-

-

-

-

-

10,535

10,535BALANCE AT MARCH 31, 2018

991,425

339,767

409,764

834,498(6,079)298,297(242)

330,923(3,956)

1,910

1,091

81,7272,287,700

BALANCE AT APRIL 1, 2018

991,425

339,767

409,764

834,498(6,079)298,297(242)

330,923(3,956)

1,910

1,091

81,7272,287,700--

Cash dividends paid

-

-

-

(41,386)-

Net income attributable to shareholders of the Company

-

-

-

168,661

-

-

-

-

-

-

(41,386)

-

-

-

-

-

168,661

Reversal of reserve on land revaluation, net of tax

-

-

-

385

-

-

-

(385)

-

-

-

-

-

Purchase of treasury stock

-

-

-

-

(15,020)

-

-

-

-

-

-

-

(15,020)

-

11

-

-

-

-

-

-

-

7

Sales of treasury stock

-

-

(4)

Change in the Company's equity due to transactions with noncontrolling interests--(7,019)

-

-

-

-

-

-

-

-

-

(7,019)

Capital transactions with non-controlling interests

-

-

524

-

-

-

-

-

-

-

-

-

524

Transfer of retained earnings to capital surplus

-

-

4

(4)

-

-

-

-

-

-

-

-

-

Net unrealized holding gains on securities

-

-

-

-

-

36,315

-

-

-

-

-

-

36,315

Deferred gains on hedging instruments

-

-

-

-

-

-

314

-

-

-

-

-

314

Foreign currency translation adjustment

-

-

-

-

-

-

-

-

(12,378)---(12,378)

Defined benefit pension plans

-

-

-

-

-

-

-

-

-

7,613

-

-

7,613

Subscription rights to shares

-

-

-

-

-

-

-

-

-

-

194

-

194

Non-controlling interests

-

-

-

-

-

-

-

-

-

-

-

(4,720)(4,720)

BALANCE AT MARCH 31, 2019

991,425

339,767

403,269

962,154(21,088)334,61272

330,538(16,334)

9,523

1,285

77,0072,420,805

BALANCE AT APRIL 1, 2019

991,425

339,767

403,269

962,154(21,088)334,61272

330,538(16,334)

9,523

1,285

77,0072,420,805

Cash dividends paid

-

-

-

(45,047)

-

-

-

-

-

-

-

-

(45,047)

Net income attributable to shareholders of the Company

-

-

-

183,973

-

-

-

-

-

-

-

-

183,973

Reversal of reserve on land revaluation, net of tax

-

-

-

34

-

-

-

(233)

-

-

-

-

(199)

Purchase of treasury stock

-

-

-

-

(24,196)

-

-

-

-

-

-

-

(24,196)
46

Sales of treasury stock
Retirement of treasury stock
Change in the Company's equity due to transactions with noncontrolling interests

-

-

(28)

-

74

-

-

-

-

-

-

-

(12,175)-(30,845)-

30,845

-

-

-

-

-

-

-

-

-

-

(361)

-

-

-

-

-

-

-

-

-

(361)
(30,746)

Capital transactions with non-controlling interests--(30,746)

-

-

-

-

-

-

-

-

-

Change in scope of consolidation

-

-

-

-

-

-

-

-

-

-

-

-

-

Transfer of retained earnings to capital surplus--

30,874(30,874)

-

-

-

-

-

-

-

-

-

Net unrealized holding losses on securities

-

-

-

-

-

(14,619)

-

-

-

-

-

-

(14,619)

Deferred gains on hedging instruments

-

-

-

-

-

-

(294)

-

-

-

-

-

(294)

Foreign currency translation adjustment

-

-

-

-

-

-

-

-

1,540

-

-

-

1,540

Defined benefit pension plans

-

-

-

-

-

-

-

-

-

(3,930)--(3,930)

Subscription rights to shares

-

-

-

-

-

-

-

-

-

-

169

-

169

Non-controlling interests

-

-

-

-

-

-

-

-

-

-

-

(616)

(616)

979,250¥339,767¥372,163 ¥1,070,240¥(14,365)¥319,993¥(222)¥330,305¥(14,794)¥5,593¥1,454¥76,391¥2,486,525$22,243,913

BALANCE AT MARCH 31, 2020

Thousands of U.S. dollars (Note 1)

BALANCE AT APRIL 1, 2019

$3,121,998 $3,705,495 $8,840,889 $(193,770) $3,074,630$662 $3,037,196 $(150,087)$87,503$11,807$707,590

Cash dividends paid--

(413,920)

-

-

-

-

-

-

-

-

(413,920)

Net income attributable to shareholders of the Company--

1,690,462

-

-

-

-

-

-

-

-

1,690,462

Reversal of reserve on land revaluation, net of tax

-

-

312

-

-

-

(2,141)

-

-

-

-

(1,829)Purchase of treasury stock

-

-

-

(222,328)

-

-

-

-

-

-

-

(222,328)
422

Sales of treasury stock

-

(257)

-

679

-

-

-

-

-

-

-

Retirement of treasury stock-(283,424)-

283,424

-

-

-

-

-

-

-

-

Change in the Company's equity due to transactions with noncontrolling interests-(3,317)

-

-

-

-

-

-

-

-

-

(3,317)

Capital transactions with non-controlling interests-(282,514)

-

-

-

-

-

-

-

-

-

(282,514)

Change in scope of consolidation

-

-

-

-

-

-

-

-

-

-

-

-

Transfer of retained earnings to capital surplus-

283,690(283,690)

-

-

-

-

-

-

-

-

(134,329)

Net unrealized holding losses on securities

-

-

-

-

(134,329)

-

-

-

-

-

-

Deferred gains on hedging instruments

-

-

-

-

-

(2,702)

-

-

-

-

-

(2,702)Foreign currency translation adjustment

-

-

-

-

-

-

-

14,150---14,150Defined benefit pension plans

-

-

-

-

-

-

-

-

(36,111)--(36,111)

Subscription rights to shares

-

-

-

-

-

-

-

-

-

1,553

-

1,553

Non-controlling interests

-

-

-

-

-

-

-

-

-

-

(5,660)(5,660)$(2,040) $3,035,055 $(135,937)$51,392$13,360$701,930$22,847,790

BALANCE AT MARCH 31, 2020

$3,121,998 $3,419,673 $9,834,053 $(131,995) $2,940,301

Thousands of U.S.
dollars (Note 1)

Millions of yen

Millions of yen
Accumulated other comprehensive income (loss)

Shareholders’ equity

Cash flows from operating activities:
Income before income taxes
Adjustments to reconcile income before income taxes to net cash
provided by operating activities
Depreciation and amortization
Loss on impairment of fixed assets
Interest and dividend income
Interest expense
Equity in net income of affiliated companies
Gain on sales of securities
Impairment loss on investment securities
Loss on disposal of property and equipment
Loss on business transfer
Loss related to COVID-19
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase in real property for sale and advances paid for purchases
Other, net
SubtotalInterests and dividends received
Interests paid
Payments related to COVID-19 loss
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of property and equipment
Proceeds from sale of property and equipment
Purchases of investment securities
Proceeds from sale of investment securities
Payments of lease deposits
Proceeds from collections of lease deposits
Repayments of deposits from tenants
Proceeds from deposits from tenants
Increase in non-current loans and accounts receivable
Proceeds from collections of non-current loans and accounts
receivable
Transfers to time deposits
Proceeds from refunds of time deposits
Purchases of consolidated subsidiaries, net
Government grants received
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from bank loans and commercial paper
Repayments of bank loans and commercial paper
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Cash dividends paid
Proceeds from non-controlling shareholders
Payments of dividends to non-controlling shareholders
Repayments of capital to non-controlling shareholders
Payments related to capital transaction with non-controllingshareholders
Repayments of lease obligations
Net increase in treasury stocks
Additional investments in consolidated subsidiaries
Other, net
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

2020

2019

2018

2020

¥261,217¥242,043¥224,748$2,400,230

91,434
1,513(7,751)
29,383(5,715)(16,711)
2,868
4,258
2,963
2,402
7,414
(1,764)(255,847)
53,105
168,769
16,812(28,816)(282)(69,388)
87,09579,035
11,415(7,137)28,284(14,896)(1,481)2,130(4,323)
3,827(31,878)
9,405
316,424
15,019(27,422)(87,312)
216,70970,167
8,042(6,084)25,672(15,258)
7,550(4,961)
1,704(217,385)(10,570)
83,625
10,378(25,652)(38,207)30,144840,154
13,902(71,221)269,990(52,513)(153,551)
26,35339,12527,22622,071
68,125(16,209)(2,350,887)
487,963
1,550,758
154,480(264,780)(2,591)(637,582)
800,285(473,818)
1,908(53,439)
22,810(13,540)
8,608(41,772)
54,763(19,948)(338,318)
1,173(33,216)
3,029(9,401)
7,386(34,386)
55,645(21,149)(360,076)
4,682(11,777)
2,028(10,968)
5,102(38,041)
66,752(22,934)(4,353,744)
17,532(491,032)
209,593(124,414)
79,096(383,828)
503,197(183,295)

18,235(15,639)
28,114
1,946(51,035)(532,807)

19,914(35,564)
18,759(3,302)
1,570(21,035)(388,895)

12,81514
2,741(15,802)(365,464)

167,555(143,701)
258,329
17,881(468,942)(4,895,773)

2,886,795(2,836,966)
630,139(230,977)
230,500(103,300)(45,049)
6,533(7,142)(136)

3,562,943(3,585,861)
448,636(268,840)
246,318(97,590)(41,364)
19,070(4,584)(486)

3,346,884(3,293,553)
371,957(220,506)
179,665(54,113)(35,573)
4,499(2,400)(105)

26,525,728(26,067,867)
5,790,122(2,122,365)
2,117,982(949,187)(413,939)
60,029(65,625)(1,250)(30,746)(5,030)(24,194)(2,675)
467,752(250)
21,790157,682¥179,472(623)(3,883)(15,013)(27,474)(10)
231,239(2,079)56,974
100,708¥157,682(3,180)(3,943)(18)(464)
289,150(1,669)(47,839)
148,547¥100,708(282,514)(46,219)(222,310)(24,579)
4,298,006(2,298)200,220
1,448,884$1,649,104

See accompanying notes.

See accompanying notes.

06

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

07

Notes to Consolidated Financial Statements
Mitsui Fudosan Co., Ltd. and its Subsidiaries

1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements of Mitsui
Fudosan Co., Ltd. (the “Company”) have been prepared in accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Law and its related accounting regulations, and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”), which are different incertain respects as to application and disclosure requirements ofInternational Financial Reporting Standards.
The accounts of overseas subsidiaries are based on theiraccounting records maintained in conformity with generally
accepted accounting principles prevailing in the respective countries of domicile. In compliance with the accounting standard,“Practical Solution on Unification of Accounting Policies Applied
to Foreign Subsidiaries for Consolidated Financial Statements”
issued by Accounting Standards Board of Japan, hereafter ASBJ,(ASBJ PITF No. 18, hereafter, “PITF No. 18”), certain adjustments, which are not recorded in the statutory books of overseas
subsidiaries, are incorporated in the consolidated financial statements of the Company prepared in accordance with Japanese

GAAP and filed with the appropriate Local Finance Bureau of the
Ministry of Finance as required by the Financial Instruments andExchange Law (“statutory Japanese language consolidated financial statements”). The accompanying consolidated financial statements have been restructured and translated into English (withsome expanded descriptions) from the statutory Japanese language consolidated financial statements. Some supplementary
information included in the statutory Japanese language consolidated financial statements, but not required for fair presentation,
is not presented in the accompanying consolidated financial
statements.
The translations of the Japanese yen amounts into U.S. dollars
are included solely for the convenience of readers, using theprevailing exchange rate at March 31, 2020, which was ¥108.83 to
U.S. $1.00. The convenience translations should not be construed
as representations that the Japanese yen amounts have been,
could have been, or could in the future be, converted into U.S.
dollars at this or any other rate of exchange.

2. SIGNIFICANT ACCOUNTING POLICIES(A) CONSOLIDATIONThe consolidated financial statements include the accounts of theCompany and its subsidiaries. The difference between the cost
and the underlying net equity at fair value of investments in consolidated subsidiaries and in equity method investees is amortized over a period of 5 years. If the amount is immaterial, it isfully recognized currently in earnings.
The difference between the cost and the underlying net equity
at fair value of investments in consolidated subsidiaries isrecorded as goodwill.
All significant inter-company accounts and transactions havebeen eliminated. In the elimination of investments in subsidiaries,
the assets and liabilities of the subsidiaries, including the portion
attributable to non-controlling shareholders, are recorded basedon the fair value at the time the Company acquired control of therespective subsidiaries.
(B) USE OF ESTIMATES
The preparation of the consolidated financial statements in conformity with the generally accepted accounting principles requires
management to make certain estimates and assumptions that
affect the reported amounts in the financial statements and theaccompanying notes. Actual results could differ from thoseestimates.
The Company and its subsidiaries assume that the outbreak of
COVID-19 will have a certain effect on future revenues in connection with accounting estimates such as test of impairment of
fixed assets and measurements of inventories. Specifically, revenues, in the first quarter of the fiscal year ending March 31, 2021,
are assumed to decline due to strictly restricted economic activities requested by the government and local governments, while
after the first quarter, are assumed to gradually normalize toward
the end of the fiscal year.
(C) EQUITY METHOD
Investments in all significant affiliated companies are accounted
for by the equity method and, accordingly, stated at cost adjusted
for equity in undistributed earnings and losses from the date ofacquisition.
(D) TRANSLATION OF FOREIGN CURRENCY ACCOUNTS
Foreign currency receivables and payables are translated at

08

Mitsui Fudosan Co., Ltd.

appropriate year-end rates and the resulting translation gains orlosses are taken into income currently.
Financial statements of consolidated overseas subsidiaries aretranslated into Japanese yen at the year-end rate, except thatshareholders’ equity accounts are translated at historical rates
and income statement items resulting from transactions with theCompany at the rates used by the Company.
Differences arising from translation are presented as “Foreign
currency translation adjustments” in accumulated other comprehensive income under net assets section.
(E) CASH AND CASH EQUIVALENTS
Deposits in banks and short-term investments which are highly
liquid, readily convertible to cash and with insignificant risk ofmarket value fluctuation, with a maturity of three months or lessat the time of purchase are treated as cash equivalents.
(F) SECURITIES
Held-to-maturity securities are stated at amortized cost.
Other securities with fair values are stated at fair value. Unrealized gains and unrealized losses on these securities are reported,
net of applicable income taxes, as a separate component ofaccumulated other comprehensive income under net assets
section. Realized gains and losses on sale of such securities arecomputed using moving-average cost.
Other securities without fair values are stated at moving-average cost.
The Company and its consolidated subsidiaries recognize
losses for the difference between the fair value and the carrying
amount when the fair value significantly declines. The Company
and its consolidated subsidiaries consider the decline to be significant when the fair value of the other securities declines morethan 50% of the carrying amount. When the fair value of theother securities declines from 30% to less than 50% of the carrying amount, the decline is also determined to be significant if thefair value of the securities is considered not to be recoverable tothe carrying amount.
If the net realizable value of the securities without fair value
declines significantly below the carrying amount, it is written
down to net realizable value with a corresponding charge in thestatements of income.

(G) INVENTORIES, REVENUE AND RELATED COSTS
The Company and its consolidated subsidiaries have followed
accounting standard, “Accounting Standard for Measurement of
Inventories” (ASBJ Statement No.9). Under the standard, inventories are initially recorded at acquisition cost, and when net
realizable value is less than the cost (i.e., profitability of inventory
has declined), the cost basis is reduced to net realizable value.
Costs are determined mainly by the specific identification methodand do not include interest and administrative expenses incurred
during or after development of real estate, which are charged toincome when incurred.
Revenue from leasing is recognized on an accrual basis overthe lease term.
Revenue from sale of properties is recognized in full when
delivered and accepted by the customers.
The Company and its consolidated subsidiaries have followed“Accounting Standard for Construction Contracts” (ASBJ Statement No.15; December 27, 2007) and ”Guidance on AccountingStandard for Construction Contracts” (ASBJ Guidance No.18;
December 27, 2007). The percentage-of-completion method shallbe applied if the outcome of the construction activity is deemedcertain during the course of the activity, otherwise the completed-contract method shall be applied.
(H) PROPERTY AND EQUIPMENT, RELATED DEPRECIATION
AND REVALUATION – excluding leased assets
Property and equipment are carried mainly at cost.
When disposed of, the cost and related accumulated depreciation or revaluation of property and equipment are removed fromthe respective accounts and the net difference, less any amounts
realized on disposal, is reflected in the statements of income.
Depreciation of property and equipment is mainly computed by
the declining-balance method over the estimated useful lives of
the assets, except for those listed below which are calculatedusing the straight-line method.
1. Office buildings (excluding building improvements) of theCompany
2. Buildings (excluding building improvements) acquired by theCompany and the domestic consolidated subsidiaries after
April 1, 1998
3. Property and equipment of the overseas consolidated
subsidiaries
4. Building improvements and structures acquired by the Company and the domestic consolidated subsidiaries after April
1, 2016
For buildings on fixed term leasehold, the Company computes
depreciation using the straight-line method, over its lease term
assuming no residual value.
( I ) IMPAIRMENT LOSSES ON FIXED ASSETSThe Company and its consolidated subsidiaries have followed“Accounting Standard for Impairment of Fixed Assets” (“Opinion
on Establishment of Accounting Standards for Impairment of
Fixed Assets” issued by the Business Accounting Deliberation
Council) and “Guidance on Accounting Standard for Impairmentof Fixed Assets” (ASBJ Guidance No. 6). The accounting standards require that fixed assets be tested for recoverability whenever events or changes in circumstances indicate that the assets
may be impaired. When the undiscounted cash flows estimatedto be generated by those assets are less than the carrying
amount of those assets, the net carrying value of assets notrecoverable is reduced to recoverable amounts. Recoverable
amounts are measured by net realizable values or values in current use. Net realizable values are determined mainly based upon

appraisal value calculated by real-estate appraisers. Values incurrent use are calculated based on the present values of future
cash flows.
Accumulated impairment losses are deducted from bookvalues of related fixed assets.
(J) LAND REVALUATION
Pursuant to the Law Concerning Land Revaluation and the revisions thereof, the Company and certain consolidated subsidiaries
revalued land used for business activities on March 31, 2002.
The land prices for revaluation were determined based on theappraisal prices by real estate appraisers in accordance with
Article 2, Paragraph 5 of the Enforcement Ordinance Concerning
Land Revaluation. The difference between quoted appraisal value
and the carrying amount is recorded, net of applicable income
taxes, as “Reserve on land revaluation” as a separate componentof accumulated other comprehensive income under the net
assets section.
(K) GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill and other intangible assets are included in “Other”
under caption of “INVESTMENTS and OTHER ASSETS.”
Goodwill is amortized over a period of 5 years under straightline method. If the amount is immaterial, it is fully recognizedcurrently in earnings.
Other intangible assets are amortized under the straight-line
method. Software (for internal use) is amortized over its estimated useful lives of 5 years.
(L) ALLOWANCE FOR DOUBTFUL ACCOUNTSThe Company and its consolidated subsidiaries provide for doubtful accounts principally at an amount computed based on thehistorical bad debt ratio during a certain reference period plus anestimated uncollectible amount based on the analysis of certain
individual accounts, including claims in bankruptcy.
(M) EMPLOYEES’ RETIREMENT BENEFITSThe Company has a retirement plan which provides for lump-sum
payment and annuity. Upon retirement age, a regular employee isentitled to receive a lump-sum payment and an annuity, or incertain cases at the option of the retiring employee, the fullamount of the retirement benefits may be paid in a lump-sum.
The retirement benefits are based primarily upon the years of
employee’s service and monthly pay at the time of retirement.
The Company and its consolidated subsidiaries record net
defined benefit asset and liability at fiscal year-end based on theestimated amounts of projected benefit obligation and the fairvalue of the plan assets at that date.
The benefit formula method is adopted as an allocation method
for the projected retirement benefits. Prior service costs areallocated under the straight-line method over a certain number ofyears within the average remaining service years (1-10 years).
Actuarial differences are allocated, beginning in the year following
their occurrence, under the straight-line method over a certain
number of years within the average remaining service years (5-10
years).
The Company’s certain consolidated subsidiaries have calculated net defined benefit liability and retirement benefit expenses
using the simplified method, under which defined benefit liability
is provided at the amounts to be paid if all eligible employees
would have voluntarily retired at year end.
(N) ALLOWANCE FOR DIRECTORS’ AND CORPORATE AUDITORS’ RETIREMENT BENEFITS
Allowance for retirement benefits for directors and corporate
auditors of the Company and its 33 consolidated subsidiaries arealso provided at the amounts to be paid if all eligible directors and

Mitsui Fudosan Co., Ltd.

09

corporate auditors would have retired at year end under the internal guidelines.
(O) ACCOUNTING FOR LEASE TRANSACTIONSThe Company and its consolidated subsidiaries have followed“Accounting Standard for Lease Transactions” (Statement No.13
originally issued by the First Committee of the Business Accounting Council on June 17, 1993 and revised by ASBJ on March 30,2007) and the “Implementation Guidance on Accounting Standard
for Lease Transactions” (the Financial Accounting Standard Implementation Guidance No.16 issued originally by the Accounting
System Committee of the Japanese Institute of Certified Public
Accountants on January 18,1994 and revised by ASBJ on March
30, 2007).
Those standards require finance leases to be accounted for in amanner similar to the accounting treatment for ordinary sales
transactions. Lessees are required to record assets and liabilities
regarding finance leases with recognition of depreciation andinterest expenses. Capitalized leased assets are depreciatedunder the straight-line method, over the lease term assuming noresidual value. Lessors are required to recognize lease receivables
or investments in leased assets along with related lease (interest)
income.
It should be noted that finance leases which do not transfer
ownership of the leased assets to lessees whose commencement day falls on or prior to March 31, 2008 are accounted for as
operating leases.
(P) INCOME TAXES
Income taxes are provided for on the basis of income for financial
statement purposes. The tax effect of temporary differences
between the carrying amounts of assets and liabilities for financial statements and income tax purposes is recognized asdeferred income taxes.
The Company and its consolidated domestic subsidiaries are
subject to a corporate tax of approximately 23%, an inhabitants
tax of approximately 5% and a deductible enterprise tax ofapproximately 4%, which in the aggregate resulted in a statutory
income tax rate of approximately 31% for the years ended March
31, 2020, 2019 and 2018.
(Q) DERIVATIVES AND HEDGE ACCOUNTING
1. Hedge accounting
The Company and its consolidated subsidiaries defer recognitionof gains or losses resulting from changes in fair value of derivative
financial instruments until the related losses or gains on thehedged items are recognized, if derivative financial instruments
are used as hedges and meet certain hedging criteria.
However, in cases where forward foreign exchange contracts
are used as hedges and meet certain hedging criteria, forward
foreign exchange contracts and hedged items are accounted forin the following manner:(1) If a forward foreign exchange contract is executed to hedge
an existing foreign currency receivable or payable,(a) the difference, if any, between the Japanese yen amountof the hedged foreign currency receivable or payabletranslated using the spot rate at the inception date of thecontract and the book value of the receivable or payable
is recognized in the income statements in the period
which includes the inception date, and(b) the discount or premium on the contract (that is, thedifference between the Japanese yen amount of thecontract translated using the contracted forward rate andthat translated using the spot rate at the inception date of
the contract) is recognized over the term of the contract.

10

Mitsui Fudosan Co., Ltd.

(2) If a forward foreign exchange contract is executed to hedge
a future transaction denominated in a foreign currency, thefuture transaction will be recorded using the contracted
forward rate, and no gains or losses on the forward foreignexchange contract are recognized.
Also, if interest rate swap contracts are used as hedge andmeet certain hedging criteria, the net amount to be paid or
received under the interest rate swap contract is added to or
deducted from the interest on the assets or liabilities for which
the swap contract was executed.
2. The following summarizes hedging derivative financial instruments used by the Company and its consolidated subsidiaries
and items hedged:
Hedging instruments:
Forward foreign exchange contracts
Foreign currency swap contracts
Interest rate swap contracts
Hedged items:
Expected foreign currency transactions
Foreign currency debt
Borrowings and debentures
3. Hedge policy
The Company and its consolidated subsidiaries use interest rate
swap contracts to mitigate risk of fair value changes of borrowings due to fluctuating interest rates and risk of changes in cash
flows. Exchange rate risk on borrowings made and debentures
issued in non-functional currencies is hedged by utilizing currency
swaps. Exchange rate risk on forecasted transactions to be settled in non-functional currencies is hedged by using forward
foreign exchange contracts.
4. Assessment of hedge effectivenessThe assessment of hedge effectiveness is omitted because significant terms of hedging instruments and those of the items
hedged are the same and the risk of changes in foreign exchange
rates and interest rates would be entirely eliminated.
(R) EQUITY INVESTMENTS REGARDING REAL ESTATE SECURITIZATION-RELATED BUSINESS
Equity investments in tokumei-kumiai, or silent partnerships(“TK”), preferred securities issued by tokutei-mokuteki-kaisha, or
specific purpose companies (“TMK”) and others regarding realestate securitization-related business (collectively, “equity investments”) are presented in the balance sheets as follows.
Equity investments held for sale are presented as “Equity
investments in properties for sale” under “CURRENT ASSETS”
and those held other than for sale are presented as “Investment
securities” under “INVESTMENTS and OTHER ASSETS.”(S) REVENUE FROM JAPANESE REAL ESTATE INVESTMENT
TRUST (J-REIT)
Revenue from J-REIT is included in “Revenue from operations.”(T) DIRECTORS’ BONUS
The Company and its consolidated subsidiaries have followed theaccounting standard, “Accounting Standard for Directors’ Bonus”(ASBJ Statement No.4). Directors’ bonuses are charged toincome as selling, general and administrative expenses.
(U) SHARE-BASED PAYMENTS
The Company and its consolidated subsidiaries have followed theaccounting standards, “Accounting Standard for Share-Based
Payment” (ASBJ Statement No.8) and the “Implementation
Guidance for the Accounting Standard for Share-Based Payment”
ASBJ Guidance No.11).
Those standards require that the cost of stock options bemeasured based on the grant-date fair value. Outstanding options

are presented as subscription rights to shares as a component of
net assets in the balance sheet.
(V) ASSET RETIREMENT OBLIGATIONSThe Company and its consolidated subsidiaries have followed“Accounting Standard for Asset Retirement Obligations” (ASBJ
Statement No.18; March 31, 2008) and “Guidance on AccountingStandard for Asset Retirement Obligations” (ASBJ Guidance
No.21; March 31, 2008). According to the standards, obligations
associated with the retirement of tangible fixed assets arerecorded as liabilities when those obligations are incurred, withthe amount of the liability initially measured by discounting thefuture cash flows. The associated asset retirement costs arecapitalized as part of the carrying amount of the fixed asset andallocated as period expenses.
(W) ACCOUNTING CHANGES AND ERROR CORRECTIONSThe Company and its consolidated subsidiaries have followed“Accounting Standard for Accounting Changes and Error Corrections” (ASBJ Statement No.24, December 4, 2009) and “Guidance on Accounting Standard for Accounting Changes and Error
Corrections” (ASBJ Guidance No.24, December 4, 2009). Thosestandards require that changes in accounting policies, changes inpresentations and corrections of prior period errors be accounted
for retrospectively, and changes in accounting estimates be
accounted for prospectively.
(X) EARNINGS PER SHARE
Basic income per share is computed by dividing the net income
available for distribution to shareholders of common stock by theweighted average number of shares of common stock outstanding during each year. Diluted net income per share reflects thepotential dilution that could occur if securities or other contracts
to issue common stock were exercised or converted into
common stock.
(Y) RECLASSIFICATIONS
Certain prior years’ amounts have been reclassified to conform tothe current presentation.
(Z) CHANGES IN FINANCIAL STATEMENTS PRESENTATION(1) Consolidated Statements of Changes in Net Assets – Capital surplus“Capital transactions with non-controlling interests”, which
was included in “change in the Company’s equity due totransactions with non-controlling interests” for the years
ended March 31, 2019 and 2018, is independently presented
for the year ended March 31, 2020 due to increase in its
materiality.
As a result, ¥(6,495) million of “change in the Company’s
equity due to transactions with non-controlling interests” isreclassified to ¥(7,019) million of “change in the Company’s
equity due to transactions with non-controlling interests”
and ¥524 million of“capital transactions with non-controllinginterests” for the year ended March 31, 2019, and ¥(3,467)
million of “change in the Company’s equity due to transactions with non-controlling interests” is reclassified to ¥(288)million of “change in the Company’s equity due to transactions with non-controlling interests” and ¥(3,179) millionof“capital transactions with non-controlling interests” forthe year ended March 31, 2018 to conform to the current
presentation.
(2) Consolidated Statements of Cash Flows(a) Net cash provided by operating activities“Government grants income” and “advanced depreciation on property and equipment” which were presented
in the consolidated statements of cash flows for the year

ended March 31, 2019 are included in “other, net” due totheir immateriality. As a result, ¥(3,973) million of“government grants income” and ¥3,960 of “advanced depreciation on property and equipment” for the year ended
March 31, 2019 are reclassified to “other, net” to conformto the current presentation.
(b) Net cash provided by financing activities“Payments related to capital transaction with non-controlling shareholders”, which was included in “paymentsof dividends to non-controlling shareholders” for theyears ended March 31, 2019 and 2018, is independently
presented for the year ended March 31, 2020 due toincrease in its materiality.
As a result, ¥(5,207) million of “payments of dividends tonon-controlling shareholders” is reclassified to ¥(622)million of “payments related to capital transaction with
non-controlling shareholders” and ¥(4,585) million of“payments of dividends to non-controlling shareholders”
for the year ended March 31, 2019, and ¥(5,580) million of“change in the Company’s equity due to transactions with
non-controlling interests” is reclassified to ¥(3,179) millionof “payments related to capital transaction with non-controlling shareholders” and ¥(2,401) million of “paymentsof dividends to non-controlling shareholders” for theyears ended March 31, 2018 to conform to the current
presentation.
(AA) NEW ACCOUNTING STANDARDS NOT YET ADOPTED(1) The Company and its consolidated subsidiaries have not yet
adopted the following accounting standards:• “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 30, 2018)• “Implementation Guidance on Accounting Standard for
Revenue Recognition” (ASBJ Guidance No. 30, March 30,2018).
The International Accounting Standards Board (IASB) and the
Financial Accounting Standards Board (FASB) have jointly
developed a converged accounting standard on revenue recognition and issued “Revenue from Contracts with Customers” (IFRS 15 by IASB and Accounting Standards Codification(ASC) Topic 606 by FASB) in May 2014. IFRS 15 is effective forannual reporting periods beginning on or after January 1, 2018
and Topic 606 is effective for annual reporting periods beginning on or after December 15, 2017. In this connection, the
ASBJ developed a converged accounting standard on revenue
recognition and issued the standard together with its implementation guidance.
The ASBJ followed two policies in developing accounting
standard for revenue recognition. That is, to incorporate allbasic IFRS 15 requirements to ensure comparability of financial statements, but also to consider additional alternative
treatments based on practices applied by Japanese companies so that the standards would not significantly impair
comparability.
The Company and its consolidated subsidiaries will adopt thestandards at the beginning of the year commencing on April 1,
2021. The effect that the adoption of the standards will haveon the consolidated financial statements is currently underevaluation.
(2) The Company and its consolidated subsidiaries have not yet
adopted the following accounting standards:• “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019)

Mitsui Fudosan Co., Ltd.

11• “Accounting Standard for Measurement of Inventories”(ASBJ Statement No. 9, Revised, July 4, 2019)• “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, Revised, July 4, 2019)• “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (ASBJ Guidance No. 31, July 4, 2019)• “Implementation Guidance on Disclosures about Fair Valueof Financial Instruments” (ASBJ Guidance No. 19, Revised,
March 31, 2020)
The IASB and the FASB have established almost the samedetailed guidance on fair value measurement (IFRS 13 “Fair
Value Measurement” by IASB and ASC Topic 820 “Fair Value
Measurement” by FASB). In this connection, the ASBJ developed those standards to ensure Japanese GAAP to be consistent with international GAAP mainly on the guidance anddisclosure regarding fair value of financial instruments.
The ASBJ followed basic policy in developing accounting
standard for fair value measurement to incorporate all basic
IFRS 13 requirements to ensure comparability of financial
statements by introducing unified measurement method, butalso to set out other treatments based on practices applied by
Japanese companies so that the standards would not significantly impair comparability.
The Company and its consolidated subsidiaries will adopt thestandards at the beginning of the year commencing on April 1,
2021. The effect that the adoption of the standards will haveon the consolidated financial statements has not been
determined.
(3) The Company and its consolidated subsidiaries have not yet
adopted “Accounting Standard for Disclosure of Accounting
Estimates” (ASBJ Statement No. 31, March 31, 2020)
The ASBJ developed and published the standard in responseto the proposal to consider disclosure under Japanese GAAPof “sources of estimation uncertainty” which is required to bedisclosed by paragraph 125 of International Accounting Standard (IAS) No.1 “Presentation of Financial Statements” (“IAS1”) issued by the International Accounting Standards Board(IASB) in 2003, as the disclosure would be highly useful for
financial statements users.
The ASBJ followed a basic policy in developing the standard,referencing to paragraph 125 of IAS 1, to show the principles(purpose of disclosure) rather than expanding individual notes.
The standard requires entities to determine disclosures considering the purpose of disclosure.
The Company and its consolidated subsidiaries will adopt thestandards at March 31, 2021.
(4) The Company and its consolidated subsidiaries have not yet
adopted “Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections” (ASBJ
Statement No. 24, Revised, March 31, 2020)
The ASBJ made necessary revisions to the standard in
response to the proposal to consider enhancing the note
information regarding “principles and procedures of accounting treatment adopted when the provisions of related
accounting standards and guidance are not clear.”In enhancing the note information regarding “principles andprocedures of accounting treatment adopted when the provisions of related accounting standards and guidance are notclear”, Note 1-2 (significant accounting policies) of Corporate
Accounting Principles is to be taken over in order not to affectthe accounting practice taken place for cases when the provisions of related accounting standards and guidance are clear.
The Company and its consolidated subsidiaries will adopt thestandards at March 31, 2021.

3. BUSINESS REORGANIZATIONSThere were no significant business reorganizations for the year
ended March 31, 2020.
Significant business reorganizations for the year ended March
31, 2019 is described as follows:
The Company acquired Mitsui Home Co.,Ltd. through publictender offering and “Demand for Shares Cash-Out.”(1) Outline of the transaction(a) Target company
Name of the company
Mitsui Home Co.,Ltd.
Business of the company	New housing construction andrenovation, leasing management
and sales of housing related partsand materials(b) Date of the business combination
Acquisition through public tender offering on September 26,
2018 (deemed acquisition date: September 30, 2018)
Acquisition through “Demand for Shares Cash-Out” on
October 17, 2018 (deemed acquisition date: October 1, 2018)(c) Legal form of the business combination

12

Mitsui Fudosan Co., Ltd.

Purchase of stock paid in cash(d) Name of the company after the business combination
Mitsui Home Co.,Ltd. (hereafter “MH”)(e) Ownership percentage of the target company
Before the acquisition
57.53%
After the public tender offering
94.83%
After the “Demand for Shares Cash-Out”
100.00%(f) Other matters
The additional investment in the subsidiary aims to enhancecollaboration between the Company and the other groupcompanies, and MH.
(2) Accounting treatment
The business combination is accounted for as transactions
among entities under common control measured at cost inaccordance with the “Accounting Standard for Business
Combinations” (ASBJ Statement No.21, revised on September 13, 2013) and “Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No.10, revised on September 13, 2013).

(3) Acquisition cost and details of additional investment in the subsidiary (including acquisition through “Demand for Shares
Cash-Out”) are summarized as below:

Consideration

Millions of yen

Cash (includes accounts payable)
Total(4) Change in the Company's equity due to transactions with
non-controlling interests(a) Principal reason of change in capital surplus
Additional investments in subsidiary(b) Amount of capital surplus decreased due to transactions¥27,575¥27,575

with non-controlling interests¥6,850 million
There were no significant business reorganizations for the year
ended March 31, 2018.

4. FINANCIAL INSTRUMENTS(1) Risk management policy regarding financial instrumentsa. Policy on financial instruments
The Company and its consolidated subsidiaries make fundprocurements mainly through bank loans and issuance ofbonds. The temporary surplus funds are invested in low-risk
financial assets. Derivative instruments are used to mitigate
risks referred to below, and the Company and its consolidated
subsidiaries do not enter into speculative derivative transactions or transactions with high volatility on fair value.
b.Risk management
Notes and accounts receivable and lease deposits are subject
to customers’ credit risk (risk related to customers’ failure to
perform a contract). Each business division monitors due dates
and balances for each counterparty to mitigate the risk of thosereceivables being uncollectible due to financial difficulties andother factors.
Investment in equity securities is exposed to market-price risk.
The securities are mainly those of companies with business
relationships. The Company and its consolidated subsidiaries
periodically monitor market prices and continuously review
whether the securities should be held.
Notes and accounts payable are mostly due within one year.
Short-term debt is mainly used for funding working capital.
Procurement from long-term debt and bonds payable, of which
the maturities are due within 50 years from the balance sheet
date, are mainly used for capital expenditures. Debt with floating interest rates is subject to interest-rate risk. The Company
and its consolidated subsidiaries utilize derivatives (interest rate

swaps) as hedging instruments for some long-term debt withfloating interest rates to fix the cash flows of interest payments. Exchange rate risk on borrowings made in non-functional currencies are hedged by utilizing currency swaps. Refer
to Note 2 (Q) for details on hedge accounting, hedge policy,
assessment of hedge effectiveness and other matters.
By using derivative instruments, the Company and its consolidated subsidiaries are exposed to counterparty’s credit risk andmarket risks such as interest rate risk and exchange rate risk.
The Company and its consolidated subsidiaries manage thecredit risk by carefully evaluating the financial positions ofmajor financial institutions before entering into contracts. The
derivative transactions are executed in compliance with procedures set forth in the policies established in each group company, and transaction volumes and fair values are reported as
appropriate to directors in charge.
Payables, debt and deposits from customers are subject toliquidity risk (risk of being unable to pay on a due date). The risk
is managed by preparing and updating monthly cash schedules
and by preserving liquidity on hand.

Mitsui Fudosan Co., Ltd.

13

(2) Estimated fair value of financial instruments
The carrying amount, estimated fair value and the difference of financial instruments as of March 31, 2020, 2019 and 2018 are summarized in the following table. Information on financial instruments for which the fair value is not reliably measurable is not included in the
below table (refer to b).
Millions of yen

Thousands of U.S. dollars (See Note 1)

2020
Carrying
amountEstimated
fair value Difference

AssetsCash and bank deposits *1¥  183,413 ¥  183,413
Notes and accounts receivable-trade38,90838,908Marketable and investment securities
596,745596,755
Liabilities
Notes and accounts payable-trade147,075
147,075
Bank loans and long-term debt due within one year
Non-recourse
68,916
68,918
Recourse
198,026
198,502
Commercial paper
173,000
173,000
Long-term debt due after one year
Non-recourse
534,759
534,987
Recourse
2,506,416 2,592,979
Derivative instruments *2
1,230
1,230

Carrying
amountEstimated
fair value

Difference¥     - $ 1,685,317 $ 1,685,317 $      357,512
357,51210
5,483,277
5,483,369
92
2
476
-

1,351,420
633,244
1,819,591
1,589,635

1,351,420

18
4,374
-

228
4,913,710
4,915,805
86,563 23,030,561 23,825,957
11,302
11,302

2,095
795,396-

Millions of yen

Carrying
amountAssetsCash and bank deposits *1¥  174,250 ¥  174,250
Notes and accounts receivable-trade45,27645,276
Marketable and investment securities
622,558
622,583
Liabilities
Notes and accounts payable-trade126,868
126,868
Bank loans and long-term debt due within one year
Non-recourse
94,13094,135
Recourse
244,988
246,193
Commercial paper
114,000
114,000
Long-term debt due after one year
Non-recourse
339,018
339,215
Recourse
2,114,475 2,189,592
Derivative instruments *2
2,179
2,179

Carrying
amountEstimated
fair value

Difference¥     - ¥  100,889 ¥  100,889
41,186
41,18625
563,330
563,368¥     38

14

Mitsui Fudosan Co., Ltd.

Assets:Equity investments in properties for sale
Other securities
Unlisted stocks (excluding OTC securities)
Other (TK investments, preferred securities and others)
Lease deposits *Liabilities:
Deposits from tenants *

2020

2019

2018

2020

¥  6,683¥  6,701¥  6,723$   61,408

13,831
24,815
145,414

10,15725,598140,571

7,075
19,729138,565

127,088
228,016
1,336,157

436,595

424,335

403,413

4,011,716

c.Redemption schedule
The redemption schedule on cash and cash equivalents, receivables and securities with maturities as of March 31, 2020, 2019 and 2018is as follows.
Refer to Note 13 for redemption schedule for long-term debt.
Millions of yen

2020

-

123,989

123,989

-

5
1,205
-

79,894244,463
125,000

80,196245,953
125,000

302
1,490
-

197
75,117-361,060
1,794,239
3,749

361,107
1,851,112
3,749

47
56,873-*1 Carrying amount of cash and bank deposits consists of ¥ 179,472 million ($1,649,104 thousand) of cash and cash equivalents and ¥ 3,941 million($36,213 thousand) of bank deposits with maturities exceeding 3 months, which is included in other current assets in the accompanying consolidatedbalance sheets, as of March 31, 2020.
Carrying amount of cash and bank deposits consists of ¥ 157,682 million of cash and cash equivalents and ¥ 16,568 million of bank deposits with maturities exceeding 3 months, which is included in other current assets in the accompanying consolidated balance sheets, as of March 31, 2019.
Carrying amount of cash and bank deposits consists of ¥100,708 million of cash and cash equivalents and ¥181 million of bank deposits with maturities
exceeding 3 months, which is included in other current assets in the accompanying consolidated balance sheets, as of March 31, 2018.
*2 Carrying amount and estimated fair value of derivative instruments represent derivative liabilities netted against derivative assets.

a.Estimation of fair value
The following methods and significant assumptions were used toestimate the fair value of financial instruments for which the fairvalue is reasonably measurable.
Cash and bank deposits and notes and accounts receivable-trade - The carrying amount of cash and bank deposits andnotes and accounts receivable-trade approximates fair value dueto their relatively short maturity.
Certificates of deposits - Fair value of certificates of deposits isbased on quoted market prices.
Marketable and investment securities - Fair value of thosesecurities is based on quoted market prices. Refer to Note 5 forThousands of U.S.
dollars (See Note 1)

Millions of yen* While fair value accounting is applied to some lease deposits and deposits from tenants, they are not separately disclosed since they are not material.

2018

Estimated
fair value Difference

Derivative instruments – Refer to Note 6.
Fair value of financial instruments includes amounts based onquoted market prices and amounts reasonably calculated. Fairvalue reasonably calculated, incorporating fluctuating factors, issubject to change under different assumptions. Nominal amountshown in Note 6 does not represent the market risk regarding thederivative transactions.

b.Financial instruments for which the fair value is not reliably measurable
For the following financial instruments, for which there were no quoted market prices, reasonable estimates of fair values could not bemade without incurring excessive costs because of the difficulty in estimating future cash flows. Thus, information on those instruments is not presented in the above table.

-

633,262
1,823,965
1,589,635

2019

the discount rates.
Long-term debt due after one year - Fair value of long-term
debt due after one year is calculated by discounting the future
cash flows, using the borrowing interest rates expected to be
currently available for the Company and its consolidated subsidiaries for debt with similar terms and remaining maturities as thediscount rates.

detailed information.
Notes and accounts payable-trade and commercial paper- The carrying amount of notes and accounts payable-trade andcommercial paper approximates fair value due to their relatively
short maturity.
Bank loans and long-term debt due within one year - The
carrying amount of bank loans approximates fair value due to theirrelatively short maturity. Fair value of long-term debt and bonds
payable due within one year is calculated by discounting thefuture cash flows, using the borrowing interest rates expected to
be currently available for the Company and its consolidated subsidiaries for debt with similar terms and remaining maturities as

Due after 1 year Due after 5
Due within 1
and within 5
years and
year
years
within 10 years

Cash and bank deposits *1
Notes and accounts receivable-trade
Other securities
National and local government bonds and other
Corporate bonds
Total

Due after 10
years¥183,413
38,908

¥  -

¥ -

¥  -

219
¥222,540

417
¥417

60
¥60

938
¥938

Due after 1 year Due after 5
Due within 1
and within 5
years and
year
years
within 10 years

Due after 10
years

Millions of yen

2019

Cash and bank deposits *1
Notes and accounts receivable-trade
Other securities
National and local government bonds and otherTotal¥174,250
45,276

¥  -

¥  -

¥-

949
¥220,475

551
¥551

151
¥151

¥-

Due after 1 year Due after 5
Due within 1
and within 5
years and
year
years
within 10 years

Due after 10
years

Millions of yen

2018

Cash and bank deposits *1
Notes and accounts receivable-trade
Other securities
National and local government bonds and other
Total¥100,889
41,186¥     -

¥  -

¥-

182
¥142,257

1,358¥1,358

279
¥279

¥-

Mitsui Fudosan Co., Ltd.

15

Thousands of U.S. dollars (See Note 1)(b) Other securities:

2020
Due after 1 year Due after 5
Due within 1
and within 5
years and
year
years
within 10 years

Cash and bank deposits *Notes and accounts receivable-trade
Other securities
National and local government bonds and other
1

Total

Due after 10
years$1,685,317
357,512$    -$  -$    -

2,012$2,044,841

3,831$3,831

551
$551

8,619
$8,619*1 Carrying amount of cash and bank deposits consists of ¥ 179,472 million ($1,649,104 thousand) of cash and cash equivalents and ¥ 3,941 million($36,213 thousand) of bank deposits with maturities exceeding 3 months, which is included in other current assets in the accompanying consolidatedbalance sheets, as of March 31, 2020.
Carrying amount of cash and bank deposits consists of ¥ 157,682 million of cash and cash equivalents and ¥ 16,568 million of bank deposits with maturities exceeding 3 months, which is included in other current assets in the accompanying consolidated balance sheets, as of March 31, 2019.
Carrying amount of cash and bank deposits consists of ¥100,708 million of cash and cash equivalents and ¥181 million of bank deposits with maturities
exceeding 3 months, which is included in other current assets in the accompanying consolidated balance sheets, as of March 31, 2018.

Millions of yen
2020
Book Value Historical(Fair Value)
Cost

2019

2018

Book Value Historical
Difference (Fair Value)
Cost

Book Value Historical
Difference (Fair Value)
Cost

Difference

Securities whose book value (fair value)
exceeds historical cost
Stocks¥488,580 ¥53,058 ¥435,522 ¥544,419 ¥91,421 ¥452,998 ¥496,948 ¥87,731 ¥409,217
Other
67,60736,30331,30467,54540,722
26,82357,73036,36921,361
Subtotal
556,187
89,361 466,826 611,964 132,143 479,821 554,678 124,100 430,578
Securities whose book value (fair value)
does not exceed historical cost
Stocks39,85845,492(5,634)
8,940
11,108(2,168)
6,825
7,690
(865)
Other
4
6
(2)
3
3
8
8
Subtotal
39,86245,498(5,636)
8,943
11,111(2,168)
6,833
7,698
(865)
Total
¥596,049 ¥134,859 ¥461,190 ¥620,907 ¥143,254 ¥477,653 ¥561,511 ¥131,798 ¥429,713
Thousands of U.S. dollars (See Note 1)
2020
Book Value(Fair Value) Historical Cost Difference

5. FAIR VALUE INFORMATION OF MARKETABLE SECURITIES, INVESTMENT
SECURITIES AND OTHERS(1) The following tables summarize historical cost, book value and fair value of securities as of March 31, 2020, 2019 and 2018:(a) Held-to-maturity securities:
Millions of yen

2020
Book Value

Securities whose fair value exceeds book value
National and local government bonds andother
Securities whose fair value does not exceed
book value
National and local government bonds and
other
Total

Fair Value

2019

2018

Difference Book Value Fair Value Difference Book Value Fair Value Difference

¥696

¥706

¥10 ¥1,651 ¥1,676¥25 ¥1,819 ¥1,857

¥38

¥696

¥706

¥10 ¥1,651 ¥1,676¥25 ¥1,819 ¥1,857¥38

Securities whose book value (fair value)
exceeds historical cost
StocksOther
Subtotal
Securities whose book value (fair value)
does not exceed historical cost
StocksOther
Subtotal
Total$4,489,387
621,217
5,110,604$487,531 $4,001,856
333,575
287,642
821,106 4,289,498

366,242
418,010(51,768)3755(18)366,279
418,065(51,786)$5,476,883 $1,239,171 $4,237,712(2) The following table summarizes other securities sold in the years ended March 31, 2020, 2019 and 2018:
Millions of yen
2020

Thousands of U.S. dollars(See Note 1)

2020
Book Value

Securities whose fair value exceeds book value
National and local government bonds andother
Securities whose fair value does not exceed
book value
National and local government bonds and
other
Total

16

Mitsui Fudosan Co., Ltd.

Fair Value

Sales amount

StocksTotal¥20,358¥20,358

Gains¥16,711¥16,7112019
Losses

¥(77)
¥(77)

Sales amount¥2,858¥2,858

Gains¥1,481¥1,481

2018
Losses¥(171)¥(171)

Sales amount

¥233
¥233

Gains

¥101
¥101

Losses¥¥-Difference

Thousands of U.S. dollars (See Note 1)$6,394$6,487

2020$93
StocksTotal$6,394$6,487$93

Sales amountGains$187,062$187,062$153,551$153,551

Losses$(708)$(708)(3) The Company and its consolidated subsidiaries recognized ¥2,868 million ($ 26,353
thousand) of impairment loss on investment securities for the year ended March 31, 2020. The Company and its consolidated
subsidiaries did not recognize significant impairment loss on investment securities for the years ended March 31, 2019 and2018.

Mitsui Fudosan Co., Ltd.

17

6. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING TRANSACTIONS
The following summarizes derivative financial instruments for which hedge accounting is not applied as of March 31, 2020, 2019 and2018:

The following summarizes hedging derivative financial instruments accounted for under hedge accounting as of March 31, 2020, 2019and 2018:
Millions of yen

Millions of yen

2020

2020

Nominal AmountNominal Amount
Total

Non-market transactions

Interest rate and currency swap
Interest rate cap
Buy

Total

Hedged items

Due after 1 year

Fair value(*)

Gain (loss)¥25,121¥6,413¥(1,077)¥(1,077)

38,346¥63,467

38,346¥44,759(79)¥(1,156)(79)(¥1,156)

Millions of yen

2019
Nominal Amount
Total

Non-market transactions

Interest rate and currency swap
Interest rate cap
Buy

Total

Due after 1 year

Fair value(*)

Gain (loss)¥30,964¥9,436¥(586)¥(586)

38,850¥69,81438,850¥48,2869¥(577)

9¥(577)

Interest rate swap
Pay : fixed rate
Receive : floating rate
Interest rate swap (*2)
Pay : fixed rate
Receive : floating rate
Interest rate and currency swap (*2)
Foreign exchange forward (*3)
Buy
U.S. dollars
TotalInterest rate and currency swap
Foreign exchange forward
Buy
U.S. dollars

Total

*1

Long-term debt

11,778

11,778¥ (70)

Long-term debt

-

-

-

932
¥437,580¥398,647

(4)
¥(74)

Forecasted transactions denominatedin foreign currencies

2019
Hedged items

Nominal AmountNon-market transactions

Fair value(*)

Gain (loss)¥27,774¥13,234¥(1,102)¥(1,102)133¥27,907¥13,234(8)¥(1,110)(8)¥(1,110)

Thousands of U.S. dollars

Interest rate swap
Pay : fixed rate
Receive : floating rate
Interest rate swap (*2)
Pay : fixed rate
Receive : floating rate
Interest rate and currency swap (*2)
Foreign exchange forward (*3)
Buy
U.S. dollars
Total

Total

Non-market transactions

Interest rate and currency swap
Interest rate cap
Buy

Total
(*) Fair values are calculated mainly by discounting the future cash flows.

18

Mitsui Fudosan Co., Ltd.

Fair value(*4)¥463,399¥419,809*1

Long-term debt

11,933

11,933¥   107

Long-term debt

12,000-(1,875)23,248¥510,580¥431,742

166¥(1,602)

Forecasted transactions denominatedin foreign currencies

2020
Due after 1 year

Due after 1 year

Long-term debt

Millions of yen

Nominal Amount
Total

Fair value(*4)¥386,869

Nominal Amount2018
Due after 1 year

Due after 1 year

¥424,870

Millions of yen

Millions of yen

Total

Total

Long-term debt

2018
Fair value(*)

Gain (loss)$230,828$58,926$(9,896)$(9,896)352,348$583,176

352,348$411,274(726)$(10,622)(726)$(10,622)

Nominal Amount
Hedged items

Interest rate swap
Pay : fixed rate
Receive : floating rate
Interest rate swap (*2)
Pay : fixed rate
Receive : floating rate
Interest rate and currency swap (*2)
Foreign exchange forward (*3)
Buy
U.S. dollars
Total

Total

Due after 1 year

Fair value(*4)

Long-term debt

¥542,729¥454,039*1

Long-term debt

5,650

5,650

¥     73

Long-term debt

14,00012,000(2,674)

1,124¥563,503¥471,689(38)¥(2,639)

Forecasted transactions denominatedin foreign currencies

Mitsui Fudosan Co., Ltd.

19

Thousands of U.S. dollars (See Note 1)

2020
Nominal Amount
Hedged items

Interest rate swap
Pay : fixed rate
Receive : floating rate
Interest rate swap (*2)
Pay : fixed rate
Receive : floating rate
Interest rate and currency swap (*2)
Foreign exchange forward (*3)
Buy
U.S. dollars
Total

Total

Due after 1 year

Fair value(*4)

Long-term debt

$3,903,978$3,554,801*1Long-term debt

108,224

108,224($643)

Long-term debt

-

-

-

8,564
$4,020,766$3,663,025(37)($680)

Forecasted transactions denominatedin foreign currencies*1: The net amount to be paid or received under the interest rate swap contract is added to or deducted from the interest on the assets or liabilities forwhich the swap contract was executed. Thus, the fair value of the interest rate swap is included in the fair value of long-term debt including those due
within one year.
*2: Recognition of gains or losses resulting from changes in fair value of interest rate swap contracts and foreign currency swap contracts are deferred until
the related losses or gains on the hedged items are recognized.
*3: Future transactions denominated in foreign currencies will be recorded using the contracted forward rate, and no gains and losses on the foreignexchange forward contract are recognized.
*4: Fair values are calculated mainly by discounting the future cash flows.

7. INVESTMENT AND LEASING PROPERTIESThe Company and its consolidated subsidiaries have followed“Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ Statement No.20; November
28, 2008) and its implementation guidance “Guidance on
Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ Guidance No.23, November 28,2008) which require explanations on investment and leasing
properties and disclosure of fair value of those properties. Investment and leasing properties are properties held to earn rentals orfor capital appreciation, and include (1) properties classified as
investment properties in the balance sheet, (2) idle properties and(3) leasing properties other than (1) and (2).
The Company and its certain subsidiaries own office buildings
for rent, commercial facilities and other properties in Tokyo andother areas. Net rent income, impairment loss and loss on disposal of property and equipment regarding those investments
and leasing properties were ¥137,952 million ($1,267,592

thousand), ¥1,064 million ($9,777 thousand), and ¥577 million($5,302 thousand) for the year ended March 31, 2020, respectively. Net rent income, impairment loss and loss on disposal ofproperty and equipment regarding those investments and leasing
properties were ¥136,200 million, ¥965 million and ¥1,020 million
for the year ended March 31, 2019, respectively. Net rent income,
impairment loss and loss on disposal of property and equipment
regarding those investments and leasing properties were¥131,014 million, ¥7,584 million, and ¥6,350 million for the year
ended March 31, 2018, respectively.
Gross rent revenue is included in revenue from operations andgross cost for rent is included in cost of revenue from operations.
Gain on disposal of property and equipment is included in interest, dividends and miscellaneous income (see Note 20). Impairment loss and loss on disposal of property and equipment areincluded in other costs and expenses (see Note 21).

March 31, 2020.
The net increase in the carrying amounts mainly consists of acquisitions of real estate which amounts to ¥281,969 million, transfers
to real property for sale which amounts to ¥83,275 million, transfers to in-house use which amounts to ¥55,568 million and sales of realestate which amounts to ¥ 920 million for the year ended March 31, 2019.
The net increase in the carrying amounts mainly consists of acquisitions of real estate which amounts to ¥381,824 million and salesof real estate which amounts to ¥ 3,078 million for the year ended March 31, 2018.
Estimated fair value was calculated internally based on Japanese Real Estate Appraisal Standards.
It is extremely difficult to determine the impact of the outbreak of COVID-19 on the fair value of investment and leasing properties(“the impact”) with high accuracy as of preparation date of the consolidated financial statements. The impact, calculated based on theassumptions described in Note 2 (B), utilizing available information as possible, turned out to be immaterial. Thus, the impact is notreflected in determination of fair value of investment and leasing properties as of March 31, 2020.

8. INVENTORIESInventories at March 31, 2020, 2019 and 2018 comprise the following:Thousands of U.S.
dollars (See Note 1)

Millions of yen

2020

Real property for saleCompleted
In progress
Land held for development
Expenditure on contracts in progress
Other
Total

2019

2018

2020

¥1,043,889 ¥  802,625 ¥  707,579
516,997480,237
468,310
318,411
321,438
321,173
17,14925,32725,401
5,310
5,500
4,857
¥1,901,756 ¥1,635,127 ¥1,527,320$ 9,591,923
4,750,501
2,925,765
157,576
48,792$17,474,557

9. ADVANCES PAID FOR PURCHASES
Advances paid for purchases comprise primarily advance payments for purchasing real estate for sale.

10. LEASE DEPOSITSThe Company and its consolidated subsidiaries lease certain office buildings and commercial facilities from the owners thereof andsublease them to subtenants. In these transactions, the Company and its consolidated subsidiaries pay lease deposits to the owners
and receive deposits from subtenants (See Note 15).

The carrying amounts, net changes in the carrying amounts and the fair value of the investment and leasing properties as of and forthe years ended March 31, 2020, 2019 and 2018 are stated below:
Millions of yen

2020

2019

Carrying amount
Beginning of Net increaseyear
during the year End of year

¥3,024,029

Fair value

Carrying amountEnd of year

Beginning of Net increaseyear
during the year End of year

¥147,104 ¥3,171,133 ¥6,089,553 ¥2,960,709

2018
Fair value

Carrying amount

Fair value

End of year

Beginning of Net increaseyear
during the year End of year

End of year

¥63,320 ¥3,024,029 ¥5,773,672 ¥2,645,057¥315,652 ¥2,960,709 ¥5,436,150

Thousands of U.S. dollars (See Note 1)

2020
Carrying amount
Beginning of year

Net increase during
the year$27,786,722$1,351,687

Fair value
End of year

End of year

$29,138,409$55,954,728

Carrying amount represents acquisition cost less accumulated depreciation and accumulated loss on impairment.
The net increase in the carrying amounts mainly consists of acquisitions of real estate which amounts to ¥216,118 million($1,985,831 thousand) and transfers to real property for sale which amounts to ¥15,043 million ($138,225 thousand) for the year ended

20

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

21

11. INCOME TAXES

12. EMPLOYEES’ RETIREMENT BENEFITS

Significant components of deferred tax assets and liabilities as of March 31, 2020, 2019 and 2018 are as follows:
Millions of yen

Deferred tax assets:
Loss on impairment of fixed assets
Net defined benefit liability
Unrealized inter-company transactions
Accrued employees’ bonuses
Excess depreciation expense
Allowance for loss on devaluation of real property held for sale
Net operating loss carryforwards
Accrued enterprise tax
Unrealized loss on valuation of lease deposits
Other
Subtotal
Valuation allowances *Total
Deferred tax liabilities:
Unrealized gain on valuation of securities
Deferred gain on sale of land and buildings for tax purposes
Consolidation difference in real property
Unrealized gain on valuation of lease deposits
Other
Total
Net deferred tax assets (liabilities)

Thousands of U.S.
dollars (See Note 1)

2020

2019

2018

2020

¥21,467
13,527
11,922
6,621
5,518
4,968
4,251
4,162
3,606
35,399111,441(11,395)¥100,046¥23,193
11,927
11,913
6,332
5,854
4,678
3,278
3,394
3,592
30,633
104,794(13,129)¥91,665¥19,472
12,268
7,567
5,926
5,860
5,215
3,110
3,716
3,575
31,93098,639(9,596)¥89,043$197,253
124,295
109,547
60,83850,70345,64939,061
38,24333,134
325,269
1,023,992(104,705)$919,287(142,170)(11,929)(4,237)(3,564)(59,988)¥(221,888)¥(121,842)(147,337)(12,034)(4,345)(3,543)(54,919)¥(222,178)¥(130,513)(130,873)(12,188)(5,539)(3,519)(45,756)¥(197,875)¥(108,832)(1,306,350)(109,611)(38,932)(32,748)(551,209)($2,038,850)($1,119,563)* Commencing from April 1, 2018, the Company and its consolidated subsidiaries adopted “Partial Amendments to Accounting Standard for Tax EffectAccounting” (ASBJ Statement No.28, February 16, 2018) which requires that valuation allowances be presented in the table describing significant components of deferred tax assets and liabilities.

Differences between the statutory tax rate and the Company’s
effective tax rate for the years ended March 31, 2020, 2019 and2018 were immaterial, and therefore are not disclosed.

(1) Outline of retirement benefit plan
The Company and its consolidated subsidiaries have adopted
funded and unfunded defined benefit plans and defined contribution plans for employees’ retirement benefits.
The Company and its consolidated subsidiaries have adopted a
corporate pension plan and lump-sum pension plans as defined
benefit plans, under which employees are entitled to lump-sum or
annuity payments based on their respective salaries and service
periods. The Company has established a retirement benefit trust

for its corporate pension plan. The Company’s certain consolidated subsidiaries have calculated net defined benefit liability andretirement benefit expenses using the simplified method, underwhich actuarial calculation is not adopted. The Company and its
consolidated subsidiaries, upon employees’ retirement and othercases, may pay supplemental benefits that are not subject toretirement benefit obligation actuarially calculated in compliancewith accounting standard for retirement benefits.

(2) Defined benefit plans(a) Change in benefit obligation, excluding plans accounted for under the simplified method, for the years ended March 31, 2020, 2019and 2018:

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Benefit obligation at beginning of year
Service cost
Interest cost
Actuarial differences
Prior service costs
Benefits paid
Other
Benefit obligation at end of year

2020

2019

2018

¥160,180
7,299
1,458
(612)
(255)
(4,661)¥163,409¥164,282
7,509
1,504
(219)
(7,443)(5,462)
9¥160,180¥158,774
7,354
1,455
1,308
156
(4,784)19¥164,2822020$1,471,837
67,06813,397(5,624)(2,343)(42,828)$1,501,507(b) Change in plan assets, excluding plans accounted for under the simplified method, for the years ended March 31, 2020, 2019 and2018:

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Fair value of plan assets at beginning of year
Expected return on plan assets
Actuarial differences
Employer contribution
Benefits paid
Other
Fair value of plan assets at end of year

2020

2019

2018

¥151,690
3,113(5,451)
3,732(3,209)101¥149,976¥143,174
2,966
2,486
6,712
(3,750)102¥151,690¥126,384
2,716
10,811
6,317(3,158)104¥143,1742020$1,393,825
28,604(50,087)
34,292(29,486)928$1,378,076(c) Change in net defined benefit liability under simplified method for the years ended March 31, 2020, 2019 and 2018:
Thousands of U.S.
dollars (See Note 1)

Millions of yen

Net defined benefit liability at beginning of year
Retirement benefit expenses
Benefits paid
Contribution to the plan
Other
Net defined benefit liability at end of year

22

Mitsui Fudosan Co., Ltd.

2020

2019

2018

¥3,719
548
(449)
(57)
8
¥3,769¥3,653
547
(401)
(68)
(12)
¥3,719¥3,420
517
(439)
(52)
207
¥3,653

2020$34,173
5,035(4,126)(524)
74$34,632

Mitsui Fudosan Co., Ltd.

23

(d) Amount recognized in the consolidated balance sheets, including plans accounted for under the simplified method, at March 31,
2020, 2019 and 2018:

Thousands of U.S.
dollars (See Note 1)

Millions of yen

2020

2019

2018

Benefit obligation for unfunded plan
Net amount recognized on the consolidated balance sheets¥139,132(150,429)¥(11,297)
28,499¥17,202¥136,505(152,124)¥(15,619)
27,828¥12,209¥138,817(143,571)¥(4,754)
29,516¥24,762$1,278,434(1,382,238)($103,804)
261,867$158,063

Net defined benefit liability
Net defined benefit asset
Net amount recognized on the consolidated balance sheets

46,196(28,994)¥17,20243,504(31,295)¥12,20942,737(17,975)¥24,762

424,479(266,416)$158,063

Benefit obligation for funded plan
Plan assets(e) Details of retirement benefit expenses for the years ended March 31, 2020, 2019 and 2018:

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Service cost
Interest cost
Expected return on plan assets
Actuarial differences recognized in earnings
Prior service costs recognized in earnings
Retirement benefit expenses under simplified method
Defined benefit expenses

2020

2020

2019

2018

¥7,2991,458(3,113)
(429)
(726)
548
¥5,037¥7,5091,504(2,966)
891
(32)
547
¥7,453¥7,354
1,455(2,716)
2,619
166
517
¥9,395

2020$67,068
13,397(28,604)(3,942)(6,671)
5,035$46,283

Premium benefits payments other than the above defined benefit expenses of ¥60 million ($551 thousand), ¥255 million and ¥197
million are recognized for the years ended on March 31, 2020, 2019 and 2018, respectively.
(f) Amount recognized in other comprehensive income (pretax) at March 31, 2020, 2019 and 2018:

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Prior service costs
Actuarial differences
Total

2020

2019

2018

¥  4705,279¥5,749¥ (7,412)(3,598)¥(11,010)¥     (9)(12,118)¥(12,127)(g) Amount recognized in accumulated other comprehensive income (pretax) at March 31, 2020, 2019 and 2018:
Millions of yen

Unrecognized prior service costs
Unrecognized actuarial differences
Total

24

Mitsui Fudosan Co., Ltd.

2020

$ 4,319
48,507$52,826

Thousands of U.S.
dollars (See Note 1)

2020

2019

2018

2020

¥(6,960)(1,366)¥(8,326)¥ (7,430)(6,634)¥(14,064)¥   (18)(3,036)¥(3,054)$(63,953)(12,552)$(76,505)(h) The asset allocation for the plans, excluding plans accounted for under the simplified method, at March 31, 2020, 2019 and 2018:

Domestic stocks
Domestic bonds
Foreign stocks
Life insurance company general accounts
Foreign bonds
Cash and bank deposits
Other
Total

2020

2019

2018

27.8%
26.8
12.5
9.7
7.8
2.0
13.4
100.0%

26.6%
25.5
13.4
9.5
6.6
3.5
14.9
100.0%

26.6%
26.6
12.1
10.1
5.4
4.2
15.0
100.0%* The plan assets include retirement benefit trust established for corporate pension plan which accounts for 16.4%, 14.8% and 13.6% of the total plan
assets as of March 31, 2020, 2019 and 2018, respectively.

The expected long-term rate of return on plan assets is determined based on the actual return on the plan asset portfolios and the
expected rate of return on those portfolios.
(i) Basis for actuarial calculation:

Discount rates
Expected long-term rates of return on plan assets

2020

2019

2018

0.5 – 1.2%
1.0 – 2.5%

0.5 – 1.2%
1.0 – 2.5%

0.5 – 1.2%
1.0 – 2.5%

(3) Defined contribution plans
Contribution made to the defined contribution plans by the Company’s certain consolidated subsidiaries amounted to ¥594 million($5,458 thousand), ¥554 million and ¥501 million for the years ended March 31, 2020, 2019 and 2018, respectively.

13. BANK LOANS, COMMERCIAL PAPER AND LONG-TERM DEBT
(1) Bank loans and commercial paper
Bank loans consist mainly of short-term notes and short-term borrowings under the loan agreements. The Company and its consolidated subsidiaries have had no difficulty in renewing such notes and borrowings, when they considered it appropriate to do so.
The amounts and the weighted average interest rates of bank loans and commercial paper at March 31, 2020, 2019 and 2018 are as
follows:

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Bank loans
Recourse, with the weighted average interest rates of 1.82% in
2020, 1.97% in 2019 and 1.72% in 2018
Commercial paper, with the weighted average interest rates of
0.00% in 2020 and -0.00% in 2019 and 2018

2020

2019

2018

2020

¥46,309¥55,326¥70,523$425,517

173,000

114,000

125,000

1,589,635

Mitsui Fudosan Co., Ltd.

25

Long-term loans, principally from banks and insurance companies consist of the following:(2) Long-term debt
Long-term debt at March 31, 2020, 2019 and 2018 comprise the following:
Millions of yen

2020

Long-term loans, principally from banks and insurance companies:
Loans secured by collateral or bank guarantees
Unsecured loans
Total long-term loans, principally from banks and insurancecompanies
Bonds and debentures
1.92%yen notes due 2018
2.09%yen notes due 2019
1.72%yen notes due 20191.63%yen notes due 2019
1.49%yen notes due 20191.50%yen notes due 2020
1.19%yen notes due 2020
1.06%yen notes due 2020
1.32%yen notes due 2020
2.30%yen notes due 2030
1.27%yen notes due 2021
1.17%yen notes due 2021
1.00%yen notes due 2022
0.96%yen notes due 2022
1.95%yen notes due 2032
2.05%yen notes due 2033
1.33%yen notes due 2046
1.00%yen notes due 2046
0.00%yen notes due 2019
0.71%yen notes due 2036
1.18%yen notes due 2056
0.00%yen notes due 2020
0.93%yen notes due 2037
0.20%yen notes due 2024
0.24%yen notes due 2027
0.10%yen notes due 2023
0.22%yen notes due 2025
0.31%yen notes due 2028
0.09%yen notes due 2023
0.20%yen notes due 2025
0.37%yen notes due 2028
0.08%yen notes due 2022
0.16%yen notes due 2024
0.28%yen notes due 2026
0.38%yen notes due 2029
0.09%yen notes due 2024
0.22%yen notes due 2029
0.53%yen notes due 2039
0.31%yen notes due 2030
0.62%yen notes due 2039
0.52%yen notes due 2035
0.82%yen notes due 2050
1.03%yen notes due 2070
3.65%U.S. dollar notes due 2027
2.95%U.S. dollar notes due 2023
3.95%U.S. dollar notes due 2029
0.00% - 0.99% notes due 2020 - 2024 (*1)
Total bonds and debentures
Less amount due within one year
Long-term debt due after one year

2019

2018

2020

¥  474,239 ¥  280,913 ¥  284,640
1,990,530
1,784,180
1,605,270$ 4,357,613
18,290,269

2,464,769

1,889,910

22,647,882

10,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,000
7,000
7,000
7,000
6,000
6,000
6,000
25,00025,00025,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,00020,00020,00020,00020,00030,00030,00020,00020,00020,00020,00050,00030,00020,00030,00020,00030,00010,00010,00054,38655,46053,08332,621
33,25831,82632,59733,239129,435
152,235
156,314797,039
672,192
519,223(220,633)(283,792)(253,834)¥3,041,175 ¥2,453,493 ¥2,155,299

91,88691,88691,88691,88691,88691,88691,88691,88691,88691,88691,88691,88664,32055,132229,716
91,88691,88691,88691,88691,88691,88691,88691,886
183,774
183,774
275,660
183,774
183,774
459,432
275,660
183,774
275,660
183,774
275,660
91,88691,886
499,734
299,743
299,5221,189,332
7,323,707(2,027,318)$27,944,271

2,065,093

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Thousands of U.S.
dollars (See Note 1)

2020

Due within one year
Non-recourse, with the weighted average interest rate of 1.99%
in 2020, 0.09% in 2019 and 1.59% in 2018
Recourse, with the weighted average interest rate of 1.42% in
2020, 2.09% in 2019 and 1.46% in 2018
Subtotal
Due after one year
Non-recourse, with the weighted average interest rate of 2.58%
in 2020, 3.37% in 2019 and 1.83% in 2018
Recourse, with the weighted average interest rate of 1.08% in
2020, 1.24% in 2019 and 1.34% in 2018
Subtotal
Total

2019

2018

2020

¥   21,416 ¥   64,930 ¥   48,744
96,717
118,133

139,662204,592

153,940
202,684

888,698
1,085,482

452,823

215,983

235,896

4,160,829

1,893,813
1,644,518
1,451,330
2,346,636
1,860,501
1,687,226¥2,464,769 ¥2,065,093 ¥1,889,910

17,401,571
21,562,400$22,647,882

Millions of yen

Thousands of U.S.
dollars (See Note 1)

Bonds and debentures consist of the following:

Due within one year
Non-recourse
Recourse
Subtotal
Due after one year
Non-recourse
Recourse
Subtotal
Total

2020

2019

2018

2020

¥ 47,500
55,000102,500¥ 29,200
50,00079,200¥ 31,150
20,00051,150$  436,460
505,376
941,836

81,936612,603
694,539¥797,039

123,035
469,957
592,992¥672,192

125,164
342,909
468,073¥519,223

752,8815,628,990
6,381,871$7,323,707

Long-term debt secured by collateral or bank guarantees consist of the following:Thousands of U.S.
dollars (See Note 1)

Millions of yen

Secured loans
Long-term loans, principally from banks and insurancecompanies
Non-recourse
Subtotal
Bonds and debentures
Non-recourse
Subtotal
Total

2020

2019

2018

¥474,239
474,239¥280,913
280,913¥284,640
284,640$4,357,613
4,357,613

129,435
129,435¥603,674

152,235
152,235¥433,148

151,514
151,514¥436,154

1,189,332
1,189,332$5,546,945

The following assets are pledged as collateral for secured loans:

Real property for sale
Buildings and structures
Land
Other
Total

2020

Thousands of U.S. dollars(See Note 1)

Millions of yen

2020$   196,784

2019

2018

Total

Non-recourse *Total

Non-recourse *Total

Non-recourse *¥377,137
101,925
256,427
178,888¥914,377¥377,137
98,618248,502
172,700¥896,957¥355,597
31,843
216,601
89,424¥693,465¥355,597
28,444
208,811
89,412¥682,264¥295,391
61,787
187,531
182,473¥727,182¥295,391
58,213
179,753
182,461¥715,818

2020
Total

Non-recourse *$3,465,377 $3,465,377
936,552
906,166
2,356,216
2,283,396
1,643,739
1,586,879$8,401,884 $8,241,818* Represents assets pledged as collateral for non-recourse loans.

(*1) Represents the total balance of asset backed securities issued by the Company’s consolidated special purpose entities. The interest rates include both
fixed rates and floating rates.

26

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

27

As is customary in Japan, collateral must be given if requested,under certain circumstances, by a lending bank and such bankhas the right to offset cash deposited with it against any debt or
obligation that becomes due and, in case of default and certain

other specified events, against all debt payable to the bank. The
Company and its consolidated subsidiaries have never received
any such requests nor do they expect that any such request will
be made.

The annual maturities of long-term debt at March 31, 2020, 2019 and, 2018 are as follows:
Millions of yen
2020
Non-recourse

Due within 1 year
Due after 1 to 2 years
Due after 2 to 3 years
Due after 3 to 4 years
Due after 4 to 5 years
Thereafter
Total

2019

Recourse

Total

Non-recourse¥ 68,916 ¥  151,717 ¥  220,633
96,877
192,333
289,210201,438
232,057
433,495
38,300222,477
260,777
32,200267,535
299,735
165,944 1,592,014 1,757,958¥603,675 ¥2,658,133 ¥3,261,808

Recourse

2018
Total

¥ 94,130 ¥  189,662 ¥  283,792
65,165
149,042214,207108,037
186,526
294,563
120,199
211,262
331,461
11,200219,455
230,655
34,417 1,348,190 1,382,607¥433,148 ¥2,304,137 ¥2,737,285

Non-recourse

Recourse

Total¥ 79,894 ¥  173,940 ¥  253,834
146,063
187,431
333,494
60,951147,091
208,042
37,752
165,377
203,129
108,294
177,253285,547
8,000 1,117,087 1,125,087¥440,954 ¥1,968,179 ¥2,409,133

2020

Due within 1 year
Due after 1 to 2 years
Due after 2 to 3 years
Due after 3 to 4 years
Due after 4 to 5 years
Thereafter
Total$  633,245
890,168
1,850,942
351,925
295,874
1,524,800$5,546,954

Recourse$ 1,394,073
1,767,279
2,132,289
2,044,262
2,458,284
14,628,448$24,424,635

Total$ 2,027,318
2,657,447
3,983,231
2,396,187
2,754,158
16,153,248$29,971,589

14. ASSET RETIREMENT OBLIGATIONS(1) Asset retirement obligations recognized in the consolidated balance sheets as of March 31, 2020, 2019 and 2018
The Company and its consolidated subsidiaries, in connection
with operating commercial facilities and parking business (Mitsui
Repark), have entered into real estate lease contracts with terms
ranging from several months to 47 years. Asset retirement obligations have been recognized in respect of the obligation of theCompany and its consolidated subsidiaries to the landlords toremove the facilities from leased real estate at the end of thosecontracts. The liability has been calculated with expected useful
lives ranging from several months to 47 years and discount rates
ranging from 0 to 2.5%.
Asset retirement obligations are included in other current liabilities and other long-term liabilities on the consolidated balance
sheets.

Millions of yen

dollars (See Note 1)

2020

2019

2018

¥5,126
827
83
(518)
19
¥5,537¥4,281
959
43
(174)
17
¥5,126¥3,924
573
120
(391)
55
¥4,281

2020$47,101
7,599
763(4,760)175$50,878* Increase for the years ended March 31, 2020, 2019 and 2018 was mainly due to additions of decommissioning costs that have become measurable in amore accurate manner.

(2) Asset retirement obligations not recognized in the consolidated balance sheets as of March 31, 2020, 2019 and 2018
The Company and its consolidated subsidiaries own properties
containing asbestos material and are obligated to remove thosematerials upon disposition of the properties. However, since
sufficient information is not available to reasonably estimate theobligation amount due to uncertainty about the method andtiming of settlement, asset retirement obligation is not recognized for the obligations to remove asbestos materials.

28

Mitsui Fudosan Co., Ltd.

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Non-interest-bearing
Interest-bearing
Total
Average interest rate
The Company and its consolidated subsidiaries generally makelease agreements with tenants under which they receive bothinterest-bearing deposits and non-interest-bearing deposits fromtenants. The non-interest-bearing deposits and some of the interest-bearing deposits are not refundable during the life of the

2020

2019

2018

¥435,916
679¥436,595
0.99%¥423,425
910¥424,335
1.00%¥402,232
1,181¥403,413
1.00%

2020

$4,005,477
6,239$4,011,716

lease. The rest of the interest-bearing deposits are generally
refundable to the tenant in equal annual or monthly paymentswith interest over certain periods of time commencing after thegrace periods, depending on the terms of the contracts.

Net assets comprises four subsections, which are shareholders’equity, accumulated other comprehensive income, subscription
rights to shares and non-controlling interests, as applicable.
Under the Japanese Company Law (the “Law”), the entire
amount paid for new shares is required to be designated ascommon stock. However, a company may, by resolution of theBoard of Directors, designate an amount not exceeding one-halfof the prices of the new shares as additional paid-in capital, whichis included in capital surplus.
Under the Law, in cases where a dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend or the excess, if any, of 25% of common stock over the
total of additional paid-in-capital and legal earnings reserve must
be set aside as additional paid-in-capital or legal earnings reserve.

Legal earnings reserve is included in retained earnings in theaccompanying consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in
capital may be used to eliminate or reduce a deficit, or may becapitalized by resolution of the shareholders' meeting. Additional
paid-in capital and legal earnings reserve may not be distributed
as dividends. However, all additional paid-in capital and all legal
earnings reserve may be transferred to other capital surplus andretained earnings, respectively, which are potentially available fordividends.
The maximum amount that the Company can distribute as
dividends is calculated based on the non-consolidated financial
statements of the Company in accordance with Japanese laws
and regulations.

17. SUPPLEMENTAL INFORMATION ON THE CONSOLIDATED STATEMENTS OF
CHANGES IN NET ASSETS(1) Changes in number of shares issued and outstanding during the years ended March 31, 2019, 2018 and 2017 are as follows:
Thousands

The following table summarizes the changes in the aggregate carrying amount of asset retirement obligations for the years ended
March 31, 2020, 2019 and 2018:
Thousands of U.S.

Beginning of year
Increase due to acquisition of fixed assets
Net increase due to revisions to original estimate*
Decrease due to settlement
Other
End of year

Deposits from tenants at March 31, 2020, 2019 and 2018 comprise the following:

16. NET ASSETS

Thousands of U.S. dollars (See Note 1)
Non-recourse

15. DEPOSITS FROM TENANTS

The Company and its consolidated subsidiaries, in connection
with some commercial facilities, hotels and retail premises, haveentered into real estate lease contracts and are obligated to thelandlords to dismantle the facilities upon exit. However, sufficient
information is not available to reasonably estimate the obligation
amount due to uncertainty about the timing of settlement or lackof plan to settle. Thus asset retirement obligation regarding reestablishing the previous state is not recognized except for thosementioned in (1) above.

Numbers of shares as of March 31, 2017
Numbers of shares increased (*1)
Numbers of shares decreased (*2)
Numbers of shares as of March 31, 2018
Numbers of shares increased (*3)
Numbers of shares decreased (*4)
Numbers of shares as of March 31, 2019
Numbers of shares increased (*5)
Numbers of shares decreased (*6)
Numbers of shares as of March 31, 2020

IssuedTreasury stock

Common stock

Common stock

991,425
991,425
991,425(12,175)
979,250

3,290
9
(99)
3,200
5,993
(6)
9,187
11,166(12,205)
8,148(*1) Treasury stock increased due to purchase of odd shares.
(*2) Treasury stock decreased due to sale of 1 thousand odd shares and exercise of 98 thousand shares of subscription rights.
(*3) Treasury stock increased due to purchase of 5,985 thousand shares through resolution of the Board of Directors’ meeting, purchase of 6 thousand odd
shares and increase of 2 thousand shares through increase in ratio of shareholding in an affiliated company.
(*4) Treasury stock decreased due to sale of 1 thousand odd shares and exercise of 5 thousand shares of subscription rights.
(*5) Treasury stock increased due to purchase of 11,160 thousand shares through resolution of the Board of Directors’ meeting and purchase of 6 thousand
odd shares.
(*6) C ommon stock issued decreased due to retirement of 12,175 thousand shares of treasury stock. Treasury stock decreased due to retirement of 12,175
thousand shares of treasury stock, sale of 1 thousand odd shares and exercise of 29 thousand shares of subscription rights.

Mitsui Fudosan Co., Ltd.

29

The following table summarizes the contents and activity of stock options as of March 31, 2020 and for the year then ended:(2) Information of subscription rights to shares is summarized as follows:

Company

Type of subscription rights to shares
Balance as of March 31, 2018
Balance as of March 31, 2019
Balance as of March 31, 2020

Millions of yen

Thousands of U.S. dollars (See Note 1)

Consolidated
subsidiaries

Consolidated
subsidiaries

Stock option¥1,091¥1,285¥1,454

Total-

Company¥1,091¥1,285¥1,454$13,360

Grantees
Total-$13,360

2018 plan
Directors,
corporate
officers andgroup
managing
officers; 31 in
total (*1)

2017 plan
Directors,
corporate
officers andgroup
managing
officers; 28 intotal (*1)

2016 plan
Directors,
corporate
officers andgroup
managing
officers; 27 intotal (*1)

2015 plan
Directors,
corporate
officers andgroup
managing
officers; 27 intotal (*1)

2014 plan
Directors,
corporate
officers andgroup
managing
officers; 27 intotal (*1)

Number of shares regarding stock options as of March 31, 2020, 2019 and 2018 and number of such shares increased and decreased
during the years then ended are not presented as they are insignificant.

Type of stock andnumber of shares
granted108,980shares ofcommon stock

95,920 sharesof common
stock

80,440 sharesof common
stock

77,720 sharesof common
stock

50,460 sharesof common
stock

52,450 sharesof common
stock(3) Information of dividends is summarized as follows:(a) Dividends paid
The following resolution was approved by the ordinary general shareholders’ meeting held on June 27, 2019, June 28, 2018 and June29, 2017:

Grant dateJuly 16, 2019

July 17, 2018

July 14, 2017

August 19,
2016

August 21,
2015

August 22,
2014

Vesting conditions

(*2)

(*2)

(*2)

(*2)

(*2)

(*2)

Requisite service period

Not specified

Not specified

Not specified

Not specified

Not specified

Not specified

Exercise period(*2)

July 17, 2019 -July 18, 2018 -July 15, 2017 -August 20,
2016 -

August 22,2015 -

August 23,
2014 -

July 16, 2049

July 17, 2048

July 14, 2047

August 19,
2046

August 21,
2045

August 22,
2044

Date of shareholders' meeting
Type of stock
Total amount
Per share amount
Record date
Effective dateJune 27, 2019
Common stock¥23,574 million($216,613 thousand)¥24 ($0.221)
March 31, 2019
June 28, 2019

June 28, 2018
Common stock¥21,741 million

June 29, 2017
Common stock¥17,786 million¥22
March 31, 2018
June 29, 2018¥18
March 31, 2017
June 30, 2017

Non-vested options(number of shares):

The following resolution was approved by the Board of Directors’ meeting held on November 7, 2019, November 9, 2018 and November
10, 2017:

Date of board of directors’ meeting
Type of stock
Total amount
Per share amount
Record date
Effective dateNovember 7, 2019
Common stock¥21,473 million($197,307 thousand)¥22 ($0.202)
September 30, 2019
December 3, 2019

November 9, 2018
Common stock¥19,645 million

November 10, 2017
Common stock¥17,787 million¥20
September 30, 2018
December 4, 2018¥18
September 30, 2017
December 4, 2017

Outstanding at
beginning of year-

95,92075,89062,25041,79038,430Granted108,980

-

-

-

-

-

Forfeited

-

-

-

-

-

-

VestedOutstanding at end ofyear-(2,240)---(1,890)108,980

93,68075,89062,25041,79036,540

Vested options (numberof shares):(b) Dividend whose record date falls within the current fiscal year but to be effective in the following fiscal year
The following resolution was approved by the ordinary general shareholders’ meeting held on June 26, 2020, June 27, 2019 and June
28, 2018:

Outstanding at
beginning of year

-

-

4,550

8,260

4,020

4,120

Vested

-

2,240

-

-

-

1,890

Date of shareholders’ meeting
Type of stock
Total amount

Exercised-(2,240)(2,030)(2,030)--

Expired

-

-

-

-

-

-

Yen/U.S.
dollars(See Note 1)¥1/$0.01

-

2,520

6,230

4,020

6,010

Yen
¥1

Yen
¥1

Yen
¥1

Yen
¥1

Yen
¥1

-

2,668

2,668

¥2,668-¥1,960/$18.01¥2,188¥2,093¥1,670¥3,218SourcePer share amount
Record date
Effective dateJune 26, 2020
Common stock¥21,364 million($196,306 thousand)
Retained earnings¥22 ($ 0.202)
March 31, 2020
June 29, 2020

June 27, 2019
Common stock¥23,574 million

June 28, 2018
Common stock¥21,741 million

Retained earnings¥24
March 31, 2019
June 28, 2019

Retained earnings¥22
March 31, 2018
June 29, 2018

Outstanding at end ofyear

Exercise price
Average stock price on
exercise date

18. STOCK OPTION PLANS

Grant-date fair value

The following table summarizes the stock option plans introduced by the Company.
Stock option expenses charged to income for the years ended March 31, 2020, 2019 and 2018 are as follows:
Millions of yen

2020

Cost of revenue from operations
Selling, general and administrative expenses
Total

30

2019 plan
Directors,
corporate
officers andgroup
managing
officers; 36 in
total (*1)

Mitsui Fudosan Co., Ltd.

¥113
100
¥213

2019

¥ 91
108
¥199

2018

¥ 71
88
¥159

¥3,067

Thousands of U.S.
dollars (See Note 1)

2020$1,038919$1,957

Mitsui Fudosan Co., Ltd.

31

The fair value of options was estimated using the Black-Scholes option pricing-model under the following assumptions:2013 plan
Directors,
corporate
officers andgroup
managing
officers; 27 intotal (*1)

2012 plan
Directors,
corporate
officers andgroup
managing
officers; 25 intotal (*1)

2011 plan
Directors,
corporate
officers andgroup
managing
officers; 25 intotal (*1)

2010 plan
Directors,
corporate
officers andgroup
managing
officers; 25 intotal (*1)

2009 plan
Directors,
corporate
officers andgroup
managing
officers; 25 intotal (*1)

2008 plan
Directors,
corporate
officers andgroup
managing
officers; 26 intotal (*1)

2007 plan
Directors,
corporate
officers andgroup
managing
officers; 27 intotal (*1)

Type of stock andnumber of shares
granted

66,650 sharesof common
stock

134,640
shares ofcommon stock

143,040
shares ofcommon stock

140,420
shares ofcommon stock

109,650
shares ofcommon stock

71,250 sharesof common
stock

48,880 sharesof commonstock

Grant dateAugust 23,
2013

August 17,
2012

August 12,
2011

August 13,
2010

August 14,
2009

August 15,
2008

September 18,
2007

Vesting conditions

(*2)

(*2)

(*2)

(*2)

(*2)

(*2)

(*2)

Requisite service period

Not specified

Not specified

Not specified

Not specified

Not specified

Not specified

Not specified

Exercise period(*2)

August 24,
2013 -

August 18,
2012 -

August 13,
2011 -

August 14,
2010 -

August 15,
2009 -

August 16,
2008 -

September 19,
2007 -

August 23,
2043

August 17,
2042

August 12,
2041

August 13,
2040

August 14,
2039

August 15,
2038

September 18,
2037

Grantees

2019 plan

95,62052,67040,33018,450

11,580Granted

-

-

-

-

-

-

-

Forfeited

-

-

-

-

-

-

-

(2,410)(10,620)(11,360)(9,700)(7,660)(4,390)(2,660)46,43078,77084,26042,97032,67014,0608,920

Vested options (numberof shares):
Outstanding at
beginning of year

5,230

9,980

8,120

8,860

3,080

-

-

Vested2,410

10,62011,360

9,700

7,660

4,390

2,660

Exercised--(3,020)(10,540)(6,910)(1,960)(1,330)

Expired

-

-

-

-

-

-

-

7,640
Yen
¥1

20,600Yen¥1

16,460
Yen
¥1

8,020
Yen
¥1

3,830
Yen
¥1

2,430
Yen
¥1

1,330
Yen
¥1

-

-

¥2,617¥2,221¥2,268¥1,988¥2,366¥2,796¥1,265¥919¥1,029¥1,493¥1,967¥2,357

Exercise price
Average stock price on
exercise date
Grant-date fair value(*1) Grantees consist of 8 directors (excluding outside directors), 17 corporate officers (non-directors) and 11 group managing officers for 2019 plan, 8
directors (excluding outside directors), 16 corporate officers (non-directors) and 7 group managing officers for 2018 plan, directors (excluding outside directors), 13 corporate officers (non-directors) and 7 group managing officers for 2017 plan, 8 directors (excluding outside directors), 13 corporate officers(non-directors) and 6 group managing officers for 2016 plan, 8 directors (excluding outside directors), 14 corporate officers (non-directors) and 5 groupmanaging officers for 2015 plan, 2014 plan and 2013 plan, 9 directors (excluding outside directors), 9 corporate officers (non-directors) and 7 group managing officers for 2012 plan, 9 directors (excluding outside directors), 8 corporate officers (non-directors) and 8 group managing officers for 2011 plan, 8 directors (excluding outside directors), 9 corporate officers (non-directors) and 8 group managing officers for 2010 plan and 2009 plan, 6 directors (excluding
outside directors), 12 corporate officers (non-directors) and 8 group managing officers for 2008 plan, and 6 directors (excluding outside directors), 13 corporate officers (non-directors) and 8 group managing officers for the 2007 plan.
(*2) Vesting conditions and exercise period:
Stock options granted are exercisable on the day following grantees leaving the positions of director, statutory auditor, corporate officer or group managing
officer, and for 5 years commencing on that date.

32

Mitsui Fudosan Co., Ltd.

35%

36%

38%

15 years¥44 ($0.40) per share
0.09%

15 years¥40 per share
0.27%

15 years¥36 per share
0.36%

19. IMPAIRMENT LOSS ON FIXED ASSETS
During the year ended March 31, 2020, the Company and certain consolidated subsidiaries recognized impairment losses for the following groups of assets.

89,390

Outstanding at end ofyear

Expected volatility (*1)
Expected life (*2)
Expected dividend (*3)
Risk-free rate (*4)

Number of vesting options is estimated based on actual forfeitures due to difficulty in reasonably estimating future forfeitures.

48,840

VestedOutstanding at end ofyear

2017 plan(*1) Expected volatility is calculated based on the historical stock price for the 15-year period ending on the grant date.
(*2) Options are assumed to be exercised at the midpoint of the exercise period because of the difficulty to reasonably estimate expected life due toinsufficient historical data.
(*3) Expected dividend is the expected dividend amount for the fiscal year in which the options are granted, estimated as of the grant date.
(*4) Risk-free rate represents the interest rate of Japanese government bonds whose life corresponds to the expected life of stock options.

Non-vested options(number of shares):
Outstanding at
beginning of year2018 plan

Primary use

Type of assets

Location

Leasing properties and other

Buildings and otherKashiwa City, Chiba, Japan and otherFor the purpose of identifying fixed assets that are impaired, theCompany and certain consolidated subsidiaries grouped their
fixed assets at the lowest level for which identifiable cash flows
are largely independent of the cash flows of other assets orgroups of assets. The corporate headquarters’ facilities aretreated as common assets.
Considering significant deterioration of profitability due toadverse changes in market conditions and other factors, theCompany reduced the book values of leasing properties and otherto their recoverable amounts and recognized impairment losses.
Impairment losses totaling ¥1,513 million ($13,902 thousand)are comprised of ¥1,231 million ($11,311 thousand) of buildings
and structures and ¥282 million ($2,591 thousand) of others.
Recoverable amounts are measured by values in current use.
Values in current use are measured at zero since the present
values calculated based on future cash flows resulted in negativevalues.

During the year ended March 31, 2019, the Company and certain consolidated subsidiaries recognized impairment losses for the following groups of assets.
Primary use

Type of assets

Location

Operating facilities

Buildings, land and other

Narita City, Chiba, Japan and otherFor the purpose of identifying fixed assets that are impaired, theCompany and certain consolidated subsidiaries grouped their
fixed assets at the lowest level for which identifiable cash flows
are largely independent of the cash flows of other assets orgroups of assets. The corporate headquarters’ facilities aretreated as common assets.
Considering significant deterioration of profitability due toadverse changes in market conditions and other factors, theCompany reduced the book values of operating facilities, including those planned to be sold, to their recoverable amounts andrecognized impairment losses.
Impairment losses totaling ¥11,415 million are comprised of¥3,992 million of land, ¥2,619 million of buildings and structuresand ¥4,804 million of others.
Recoverable amounts are measured by net realizable values orvalues in current use. Net realizable values are determined mainly
based upon appraisal values calculated by real-estate appraisers.
Values in current use are measured at zero since the present
values calculated based on future cash flows resulted in negativevalues.

During the year ended March 31, 2018, the Company and certain consolidated subsidiaries recognized impairment losses for the following groups of assets.
Primary use

Type of assets

Location

Leasing properties and other

Buildings, land and other

Hiroshima City, Hiroshima, Japan and otherFor the purpose of identifying fixed assets that are impaired, theCompany and certain consolidated subsidiaries grouped their
fixed assets at the lowest level for which identifiable cash flows
are largely independent of the cash flows of other assets orgroups of assets. The corporate headquarters’ facilities aretreated as common assets.
Considering significant deterioration of profitability due to a

decline in current rental rates, adverse changes in market conditions and other factors, the Company reduced the book values ofleasing properties and other assets to their recoverable amounts
and recognized impairment losses.
Impairment losses totaling ¥8,042 million are comprised of¥3,476 million of land, ¥4,245 million of buildings and structuresand ¥321 million of others.

Mitsui Fudosan Co., Ltd.

33

Recoverable amounts are measured by values in current use.
Values in current use are calculated based on the present valuesof future cash flows, using a discount rate of 5.8% - 6.2%.

20. MAJOR COMPONENTS OF INTEREST, DIVIDENDS AND MISCELLANEOUS INCOME
Thousands of U.S.
dollars (See Note 1)

Millions of yen
Years ended March 31,

2020

2019

2018

2020

Interest income
Dividend income
Gain on sale of investment securities
Other
Total

¥ 1,373
6,378
16,711
2,960¥27,422¥ 1,351
5,786
1,481
6,494
¥15,112¥  8395,245
3,636¥9,720$ 12,616
58,605
153,551
27,199$251,971

Government grants income, which was presented in the prior year's above table, is included in "other" for the year ended March 31, 2020 due to its immateriality. As a result, ¥3,973 million of government grants income for the year ended March 31, 2019 is reclassified to "other" to conform to the current
presentation.

21. MAJOR COMPONENTS OF OTHER EXPENSES
Thousands of U.S.
dollars (See Note 1)

Millions of yen
Years ended March 31,

2020

2019

2018

2020

Loss on disposal of property and equipment
Impairment loss on fixed assets
Impairment loss on investment securities
Loss on business transfer
Loss related to COVID-19 *
Other
Total

¥ 4,258
1,513
2,868
2,963
2,402
9,151
¥23,155¥ 2,130
11,4158,284¥21,829¥ 7,550
8,042
4,868¥20,460$ 39,125
13,902
26,35327,22622,071
84,086$212,763* Loss related to COVID-19 mainly includes supporting funds for tenants of commercial facilities significantly affected by the closures and fixed costs suchas rent and depreciation expenses incurred while the commercial facilities and hotels are closed.
Advanced depreciation on property and equipment, which was presented in the prior year's above table, is included in "other" for the year ended March 31,
2020 due to its immateriality. As a result, ¥3,960 million of advanced depreciation on property and equipment for the year ended March 31, 2019 is reclassified to "other" to conform to the current presentation.

34

Mitsui Fudosan Co., Ltd.

22. COMPREHENSIVE INCOME
An analysis of each component of other comprehensive income (loss) and related tax effects for the years ended March 31, 2020, 2019and 2018 is presented as follows.

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Net unrealized holding gains (losses) on securities
Unrealized holding gains (losses) arising during the year
Reclassification to income for the year
Pretax amountTax benefit (expense)
Net-of-tax amountDeferred gains (losses) on hedging instruments
Deferred gains (losses) arising during the year
Reclassification to income for the year
Pretax amountTax expense
Net-of-tax amountReserve on land revaluation
Tax benefit (expense)
Foreign currency translation adjustments
Aggregated adjustment during the year resulting from foreign
currency translation
Reclassification to income for the year
Net amount
Adjustments for retirement benefit
Adjustments for retirement benefit arising during the year
Reclassification to income for the year
Pretax amountTax expense
Net-of-tax amount
Equity in other comprehensive income (loss) of affiliated companies
Unrealized gains (losses) arising during the year
Reclassification to income for the year
Net amount
Total other comprehensive income (loss)

2020

2019

2018

2020

¥(7,116)(13,942)(21,058)
6,508(14,550)¥53,114(1,183)51,931(15,548)
36,383¥133,893(95)
133,798(40,999)
92,799$(65,386)(128,108)(193,494)
59,799(133,695)

(188)
(188)
35
(153)

(44)
507
463
(141)
322

(304)
567
263
(177)
86

(1,727)(1,727)321(1,406)--(1,047)

-

(712)
(712)

(8,405)(8,405)

1,150
(1)
1,149

(6,542)(6,542)(4,594)(1,155)(5,749)1,766(3,983)

10,151859
11,010(3,340)
7,670

9,536
2,591
12,127(3,706)
8,421(42,213)(10,613)(52,826)
16,228(36,598)

1,990
(283)
1,707
¥(17,691)(3,805)(764)(4,569)¥31,401

2,359
(72)
2,287
¥103,695

18,285(2,600)15,685$(162,556)

Mitsui Fudosan Co., Ltd.

35

23. LEASES

24. SEGMENT INFORMATIONAs lessee:(A) Finance leases
Assets leased under finance leases that do not transfer ownership to the lessee consist mainly of buildings and structures used inleasing business. Such assets are capitalized as assets and depreciated using the straight-line method over their lease term assuming
no residual value.
As described in Note 2 (O), finance leases that do not transfer ownership to the lessee whose commencement day falls on or before
March 31, 2008 are accounted for as operating lease. Information on such leases is summarized as follows:(1) Assumed amounts of acquisition cost, accumulated depreciation and net book value at March 31, 2020, 2019 and 2018:
Millions of yen

2020
Buildings andstructures

Acquisition cost
Accumulated depreciation
Net book value

2019
Buildings andstructures

Total

¥519
450
¥69

¥519
450
¥69

2018
Buildings andstructures

Total

¥519
415
¥104

¥519
415
¥104

Total

¥519
380
¥139

¥519
380
¥139

Thousands of U.S. dollars (See Note 1)

2020
Buildings andstructures

Acquisition cost
Accumulated depreciation
Net book value$4,7694,135$  634

Total$4,7694,135$  634(2) Future lease payment inclusive of interest at March 31, 2020, 2019 and 2018:

Thousands of U.S.
dollars (See Note 1)

Millions of yen

2020

Amount due within one year
Amount due after one year
Total

¥35
34
¥69

2019

¥ 35
69
¥104

2018

2020

¥ 35
104
¥139

$322
312
$634

(3) Lease expense and the assumed amount of depreciation expense for the years ended March 31, 2020, 2019 and 2018:
Thousands of U.S.
dollars (See Note 1)

Millions of yen

2020

Lease expense
Depreciation expense

2019

¥35
35

¥35
35

2018

2020

¥50
50

$322
322

(4) Calculation of the assumed amount of depreciation expense:
Assumed depreciation amounts are computed using the straight-line method over the lease terms assuming no residual value.
(B) Operating leases
Future lease payments under non-cancellable operating leases at March 31, 2020, 2019 and 2018:

Thousands of U.S.
dollars (See Note 1)

2020

2019

2018

¥ 91,529
359,225¥450,754¥ 89,091
299,722¥388,813¥ 77,772
271,106¥348,878

As lessor:
Operating leases
Future lease revenue under non-cancellable operating leases at March 31, 2020, 2019 and 2018:36

Mitsui Fudosan Co., Ltd.

Year ended March 31,2020

Revenue from operations:
Outside customers
Inter-segment
Total revenue from operations
Segment operating income
Segment assets
Depreciation
Loss on impairment of fixed assets
Additions to property and equipment
and intangible assets$  841,027
3,300,791$4,141,818

Revenue from operations:
Outside customers
Inter-segment
Total revenue from operations
Segment operating income
Segment assets
Depreciation
Loss on impairment of fixed assets
Additions to property and equipment
and intangible assets(2)¥  636,056
21,856¥  657,912¥  145,893
4,055,972
66,731
1,063¥  524,095¥  524,095¥  123,745
2,155,135846
3¥421,490
77,112¥498,602¥ 55,671
363,775
9,574
447¥324,002
16,254¥340,256¥  2,291
337,201
10,439-¥        (115,222)¥(115,222)¥ (46,982)
483,276
3,844-¥1,905,643¥1,905,643¥  280,618
7,395,359
91,434
1,513

301,854

4,941

16,58660,225(4,327)379,279(1)(3)

Millions of yen
(4)

(1)

(2)

(3)

Millions of yen(4)Adjustments (*1)

Adjustments (*2)

Consolidated

Consolidated¥  603,284
19,483¥  622,767¥  141,946
3,792,511
59,451
965¥530,766
558¥531,324¥ 98,038
1,866,804
1,553
5¥404,347
74,713¥479,060¥ 55,180
378,5469,119
441¥322,798
11,241¥334,039¥  9,157
285,690
7,125
10,004¥       (105,995)¥(105,995)¥ (42,173)
479,181
1,787-¥1,861,195¥1,861,195¥  262,148
6,802,732
79,035
11,415

337,029

2,945

10,87145,136(5,466)

390,515

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Amount due within one year
Amount due after one year
Total

2020

(3) Management
Property management and brokerage and asset management
and other(4) Other
Facility operations and otherIn connection with Mitsui Home Co., Ltd. becoming a wholly
owned subsidiary for the purpose of strengthening alignment
within the Group, the Company changed its former 5 reportablesegments of “Leasing”, “Property Sales”, “Management”, “Mitsui
Home” and “Other” to new 4 reportable segments of “Leasing”,“Property Sales”, “Management” and “Other.” Segment of“Mitsui Home” consisted of Mitsui Home Group’s "New housing
construction business", "Renovation and renewal business","Housing related material sales business", and "Leasing management business", of which "New housing construction business","Renovation and renewal business" and "Housing related material
sales business" have been reclassified to the segment of “Other”
and "Leasing management business" has been reclassified to thesegment of “Management.”
Segment information for the years ended March 31, 2019 and2018 are reclassified to conform to the new segmentation.

Financial information about reportable segments for the years ended March 31, 2020, 2019 and 2018 is summarized in the following
tables. The accounting policies of segments are almost the same as those described in Note 2. Segment operating income is based onrevenue from operations, cost of revenue from operations and selling, general and administrative expenses. Transactions and transfers
between segments are made at amounts based on prevailing market prices.

Year ended March 31,2019Millions of yen

Amount due within one year
Amount due after one year
Total

Reportable Segment Information:
The reportable segments of the Company represent its components for which operating results are regularly reviewed, utilizing
separately available financial information, by the management indeciding how to allocate resources and assessing segment
performance.
The Company’s Head Office organizes its business units basedon products and services, with each unit controlling subsidiaries
with related business, mainly consisting of leasing, property sales
and management.
The Company employs a matrix form of segment categorized
by business unit organized by Head Office and by services provided. The Company’s segments have been aggregated based on
the nature of products and services into the 4 reportable segments of “Leasing”, “Property Sales”, “Management” and“Other.”Descriptions of reportable segments are stated below.
(1) Leasing
Leasing of office buildings and commercial facilities and other(2) P roperty Sales
Sales of condominiums and detached housing to individuals,
and sales of rental housing and office buildings and other toinvestors.

2020

2019

2018

¥101,167
891,009¥992,176¥ 95,386
653,096¥748,482¥ 88,819
628,429¥717,2482020$  929,587
8,187,163$9,116,750

Mitsui Fudosan Co., Ltd.

37

Year ended March 31,2018

Revenue from operations:
Outside customers
Inter-segment
Total revenue from operations
Segment operating income
Segment assets
Depreciation
Loss on impairment of fixed assets
Additions to property and equipment
and intangible assets

Year ended March 31,2020

Revenue from operations:
Outside customers
Inter-segment
Total revenue from operations
Segment operating income
Segment assets
Depreciation
Loss on impairment of fixed assets
Additions to property and equipment
and intangible assets(1)

Millions of yen
(3)
(4)

(2)

Adjustments *( 3)

Consolidated¥  558,165
17,783¥  575,948¥  138,338
3,535,907
51,045
7,583¥499,608
234¥499,842¥ 83,011
1,730,914
1,611
18¥379,135
71,679¥450,814¥ 50,551
346,1838,846
441¥314,206
10,766¥324,972¥ 10,898
260,725
7,093-¥       (100,462)¥(100,462)¥ (36,896)
410,995
1,572-¥1,751,114¥1,751,114¥  245,902
6,284,724
70,167
8,042

397,744

2,389

13,28523,9693,366

440,753

Thousands of U.S. dollars (See Note 1)(3)(4)
Adjustments (*1)

(1)

(2)

$ 5,844,491
200,827$ 6,045,318$ 1,340,559
37,268,878
613,167
9,767$ 4,815,722$ 4,815,722$ 1,137,049
19,802,766
7,774
28

$3,872,921
708,555$4,581,476$  511,541
3,342,599
87,972
4,107$2,977,139
149,352$3,126,491$    21,051
3,098,420
95,920-(1,058,734)$(1,058,734)$  (431,701)
4,440,650
35,321-$17,510,273$17,510,273$2,578,499
67,953,313
840,154
13,9022,773,629

45,401

152,403553,386(39,760)

3,485,059$        -Reportable segment information regarding carrying amount and amortization of goodwill and income recognized from negative goodwill
has been omitted due to their immateriality.
Products and Services Information:
Refer to reportable segment information.
Geographic Area Information:(1) Revenue from operations
Geographic area information has been omitted since revenue from outside customers in the Japan area accounted for more than 90%
of revenue from operations on the consolidated income statements.
(2) Property and equipment
Property and equipment classified by the location at March 31, 2020, 2019 and 2018 are as follows:(*1) Adjustments to segment operating income of ¥ (46,982) million ($(431,701) thousand) consists of ¥(366) million ($(3,363) thousand) of inter-segment
elimination and ¥ (46,616) million ($(428,338) thousand) of corporate expenses, which mainly represent the Company’s general and administrative
expenses that are not allocable to any of the reportable segments. Adjustments to segment assets of ¥483,276 million ($4,440,650 thousand) consistsof ¥ (1,138,241) million ($(10,458,890) thousand) of inter-segment elimination, ¥1,368,781 million ($12,577,239 thousand) of corporate assets andinvestments in affiliated companies of ¥ 252,736 million ($2,322,301 thousand).
(*2) Adjustments to segment operating income of ¥ (42,173) million consists of ¥ (379) million of inter-segment elimination and ¥ (41,794) million of corporate expenses, which mainly represent the Company’s general and administrative expenses that are not allocable to any of the reportable segments.
Adjustments to segment assets of ¥ 479,181 million consists of ¥ (1,053,348) million of inter-segment elimination, ¥1,317,354 million of corporate
assets and investments in affiliated companies of ¥ 215,175 million.
(*3) Adjustments to segment operating income of ¥ (36,896) million consists of ¥ (618) million of inter-segment elimination and ¥ (36,278) million of corporate expenses, which mainly represent the Company’s general and administrative expenses that are not allocable to any of the reportable segments.
Adjustments to segment assets of ¥ 410,995 million consists of ¥ (919,494) million of inter-segment elimination, ¥1,132,645 million of corporate
assets and investments in affiliated companies of ¥ 197,844 million.

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Consolidated

Japan
U.S.A.
U.K.
Other
Total

2020

2019

2018

¥3,178,590
422,946
58,36558,702¥3,718,603¥3,017,088
356,885
58,51643,903¥3,476,392¥2,840,247
355,966
63,12533,335¥3,292,673

2020$29,206,928
3,886,300
536,295
539,392$34,168,915

Customer Information:
Customer information has been omitted since revenue from no single customer exceeded 10% of revenue from operations on the
consolidated income statements.

25. RELATED PARTIES
There were no significant related party transactions for the year ended March 31, 2020.
Significant related party transaction for the year ended March 31, 2019 is summarized as follows:
Transaction with the Company’s directors and major individual shareholders
Millions of yen

2019
Type

Director

Name

Ownership ratioof voting shares

Nature oftransaction

Directly owns Renovation ofToru Yamashita 0.00%
residence

Transaction amount

Balance outstanding at year end¥17-

Policies for terms and conditions of the transaction:
The transaction price is determined in reference to market prices.
Significant related party transaction for the year ended March 31, 2018 is summarized as follows:
Transaction with the Company’s directors and major individual shareholders
Millions of yen

2018
Type

Name

Corporate
AuditorYasushiManagoOwnership ratioof voting shares

Nature oftransaction

Directly owns Renovation of
0.00%
residence

Transaction amount

Balance outstanding at year end¥23-

Policies for terms and conditions of the transaction:
The transaction price is determined in reference to market prices.

38

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

39

Independent Auditor’s Report

26. CONTINGENT LIABILITIESContingent liabilities at March 31, 2020, 2019 and 2018 are as follows:

Thousands of U.S.
dollars (See Note 1)

Millions of yen

Loans guaranteed

2020

2019

2018

2020

¥25,069¥21,664¥32,130$230,350

It had been presumed that some of the foundation piles, part of abuilding’s substructure, were faulty on a condominium complex(the “Condominiums”) located in the City of Yokohama that weresold by Mitsui Fudosan Residential Co., Ltd. (“MFR”), one of theCompany's consolidated subsidiaries. On April 11, 2016, MFR
received a report of an investigation of current conditions confirming that a portion of the piles used in the construction failed toreach the required bearing layer from the building contractor,
Sumitomo Mitsui Construction Co., Ltd. (“SMC”). In addition, on
August 26, 2016, MFR received a notice from the City of Yokohama stating that the Condominiums were in violation of the
Building Standards Law and requesting that MFR consult with theunit owners of the Condominiums and take all responsible steps
to resolve the situation.
On May 8, 2016, MFR executed an agreement (the “Agreement”) with the condominium association (the “Condominium
Association”), establishing a basic framework to remedy thedefects in the installation of the foundation piles, including thepossibility of reconstructing the Condominiums, as well as compensation and providing that MFR would bear the expenses
arising out of such defects. On September 19, 2016, the Condominium Association resolved in accordance with the Act on Building Unit Ownership, etc. and determined that it would seek thecomplete reconstruction of the entire Condominiums as the

27. SUBSEQUENT EVENTS
There were no applicable items under this category.

corrective measure.
With regard to the Condominiums, MFR received the reportfrom the building contractor, SMC, which noted that construction
records had been diverted and modified at the time of the installation of the foundation piles, and it was revealed that certain
foundation piles failed to reach the required bearing layer and theCondominiums violated the Building Standards Law. Accordingly,
MFR determined to seek all damages incurred including reconstruction costs and expenses relating to the temporary housing ofunit owners of the Condominiums during the period of reconstruction against the building contractor, SMC, as well as Hitachi
High-Technologies Corporation and Asahi Kasei Construction
Materials Corporation, which installed the foundation piles, basedon their tort liabilities and defect liabilities. On November 28, 2017,
MFR filed a lawsuit to seek damages incurred against the above 3
companies. The claim amount is approximately ¥50.9 billion($467.7 million) as of March 31, 2020. All related temporary payments undertaken by MFR up to March 31, 2020 are recorded as
current assets on the consolidated balance sheet.
Depending on the outcome of future events, the mattersreferred to above may impact the consolidated results of operations of the Company and its consolidated subsidiaries. At thisstage, however, it is difficult to estimate reasonably the amountof any such impact.

Independent auditor’s report
To the Board of Directors of Mitsui Fudosan Co., Ltd.:
OpinionWe have audited the accompanying consolidated financial statements of Mitsui Fudosan Co., Ltd. (“theCompany”) and its consolidated subsidiaries (collectively referred to as “the Group"), which comprise theconsolidated balance sheets as at March 31, 2020, 2019 and 2018, the consolidated statements of income
and comprehensive income, changes in net assets and cash flows for the years then ended, and notes,
comprising a summary of significant accounting policies, other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as at March 31, 2020, 2019 and 2018, and its consolidated
financial performance and cash flows for the years then ended in accordance with accounting principles
generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Consolidated Financial Statements section of our report. We are independent of the Group inaccordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in thecontext of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.

40

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

41

The appropriateness of determination as to whether to recognize impairment losses on theProperties within property and equipment
The key audit matter

How the matter was addressed in our audit

In the consolidated balance sheet of Mitsui FudosanCo., Ltd. (the “Company”) for the current fiscal
year, property and equipment of ¥3,718,603 million
held primarily as leasing and operating properties
were recognized, and the amount of property andequipment (the “Properties”) accounted forapproximately 50% of the consolidated total assets.
Of the Properties, the determination as to whether
to recognize impairment losses mainly concernedcertain of the Properties whose profitability has
declined such as those experiencing a deviationfrom the initial business plan.

The primary procedures we performed to evaluate
whether the Company’s judgment with respect tothe determination as to whether to recognize
impairment losses on the Properties as leasing
and operating properties was appropriate,included the following:

While the Properties are depreciated in a systematicmanner, upon identifying any indication of
impairment, the Company is required to determine
whether an impairment loss should be recognized.
The indicators of impairment include recurring
operating losses, a significant decline in market
value, significant deterioration of businessenvironment, and a change in usage.

(2) Evaluation of the appropriateness of theCompany’s judgment in identifying any
indication of impairment

In particular, the estimates of future cash flows anddiscount rates used to calculate the market value ofrespective Properties may be significantly affectedby changes in economic conditions and interest
rates, competition in the real-estate markets andexternal factors affecting property development, arevision to real-estate related tax legislation andreal-estate/financial laws and regulations, andnatural disasters, as well as any impact from the
spread of COVID-19 infections. Hence, theseestimates involve a high degree of uncertainty, as
well as significant subjectivity in the Company’s
judgments.
We, therefore, determined that the appropriatenessof determination as to whether to recognize
impairment losses on the Properties within property
and equipment was of most significance in our
audit of the consolidated financial statements forthe current fiscal year, and accordingly, a key audit
matter.

42

Mitsui Fudosan Co., Ltd.

(1) Internal control testing We inspected the materials relevant to theprogress toward and probability of achieving
the business plan for respective Properties, toassess whether there is any significant
deterioration of business environment or achange in usage, and inquired of management
about risk factors that could affect thefeasibility of the business plan. In addition, we
evaluated the reasonableness of the estimates ofdevelopment costs and profitability that
underlay the business plan by comparing themagainst the information published by externalsources.

We tested the design and operating effectivenessof the Company’s certain internal controls
relevant to the determination as to whether torecognize impairment losses on the Properties.

 We examined the accuracy of the actual profit
and loss data for respective Properties on
which the determination of recurring
operating losses was based by comparing
them with the relevant supporting materials
and analyzing the trend of profit and loss.

 With respect to the future cash flows anddiscount rates used for calculating the market
value of respective Properties, with theassistance of our own real-estate valuation
specialists, as necessary, we:- evaluated the appropriateness of the valuation
method selected to calculate the market value
in light of the requirements such as those in
the accounting standards;- evaluated the reasonableness of the estimate of
future cash flows used to calculate the market
value, taking into consideration future
economic conditions including the spread of
COVID-19 infection, by comparing themagainst the actual cash flows and otherrelevant information related to the cash flows
published by external sources; and- evaluated the reasonableness of the estimate ofdiscount rates used to calculate the market
value by comparing them against the
information published by external sources.

Mitsui Fudosan Co., Ltd.

43

The reasonableness of the valuation of Real Property for Sale related to the Property Sales business
The key audit matter

How the matter was addressed in our audit

In Note 8. “Inventories” to the consolidated
financial statements for the current fiscal year, real
property for sale completed of ¥1,043,889 million,
real property for sale in progress of ¥516,997
million and land held for development of ¥318,411
million related to the Property Sales business wererecognized, and their total amount (collectively, the“Real Property for Sale”) accounted forapproximately 25% of the consolidated total assets.
Of the Real Property for Sale, the valuation of theReal Property for Sale related to the Property Sales
business mainly concerned those that were slowmoving or experiencing a decline in profitability.

The primary procedures we performed to evaluate
whether the valuation of the Real Property forSale related to the Property Sales business was
reasonable, included the following:

The Company describes the valuation of the Real
Property for Sale in Note 2. “Significant
Accounting Policies,” under (G) “Inventories,
Revenue and Related Costs” to the consolidated
financial statements.
The selling prices and development costs including
any estimated additional costs that underlie thecalculation of net realizable value of the Real
Property for Sale are estimated on a property byproperty basis. However, during the course of longterm property development and sales activities,
these estimates may be significantly affected bychanges in economic conditions and interest rates,
competition in the real-estate markets and external
factors affecting property development, a revision
to real-estate related tax legislation and realestate/financial laws and regulations, and natural
disasters, as well as any impact from the spread of
COVID-19 infection. Hence, these estimates
involve a high degree of uncertainty, as well as
significant subjectivity in the Company’s
judgments.
We, therefore, determined that the reasonablenessof the valuation of the Real Property for Sale
related to the Property Sales business was of mostsignificance in our audit of the consolidated
financial statements for the current fiscal year, andaccordingly, a key audit matter.

44

Mitsui Fudosan Co., Ltd.

(1) Internal control testing
We tested the design and operating effectivenessof the Company’s certain internal controls
relevant to the valuation of the Real Property forSale.
(2) Evaluation of the reasonableness of theestimate of net realizable value With respect to the estimate of the selling
price for respective Real Property for Sale,
with the assistance of our own real-estate
valuation specialists, as necessary, we:- evaluated the appropriateness of the valuation
method selected to calculate a selling price inlight of the requirements such as those in theaccounting standards;- evaluated the reasonableness of the estimate of
future cash flows used to calculate a selling
price, taking into consideration future
economic conditions including the spread of
COVID-19 infection, by comparing themagainst the actual cash flows and otherrelevant information related to the cash flows
published by external sources; and- evaluated the reasonableness of the estimate ofdiscount rates used to calculate a selling priceby comparing them against the information
published by external sources.

The appropriateness of the accounting treatment and disclosures relating to the Condominiums
located in the City of Yokohama
The key audit matter

How the matter was addressed in our audit

The Company describes its accounting treatment
and disclosures for the condominium complex (the“Condominiums”) located in the City of Yokohama
in Note 26. “Contingent Liabilities” to theconsolidated financial statements.

The primary procedures we performed on thecosts incurred at MFR as well as the status andprospect of the pending lawsuit in order toevaluate whether the accounting treatment anddisclosures relating to the Condominiums locatedin the City of Yokohama were appropriate,included the following:

For this event, Mitsui Fudosan Residential Co., Ltd.
(“MFR”) filed a lawsuit to seek reimbursement of
all costs incurred including reconstruction costs andexpenses against the construction companies. Of
the costs incurred, the amount of payments
undertaken by MFR to date are recorded as part ofcurrent assets on the consolidated balance sheets.
While depending on the outcome of the pending
lawsuit, this matter may have an impact on the
results of operations of the Company, at this stage
it is difficult to reliably estimate a reasonableamount of any such impact. Accordingly, such
estimate involves a high degree of uncertainty, as
well as significant subjectivity in the Company’s
judgments.

 We inquired of management and personnel of
MFR responsible for the matter andmanagement of the Company about the costs
incurred at MFR as well as the status andprospect of the pending lawsuit. In addition,
we evaluated the reasonableness of theestimate by confirming the consistency
between the relevant litigation materials andtheir answers to our queries; We circularized, through a written legal
confirmation, MFR’s legal counsel handing
the matter and confirmed the status andprospect of the pending lawsuit.

We, therefore, determined that the appropriatenessof the accounting treatment and disclosures relating
to the Condominiums located in the City of
Yokohama was of most significance in our audit of
the consolidated financial statements for the current
fiscal year, and accordingly, a key audit matter.

 With respect to the Real Property for Sale inprogress, we inspected the materials relevant tothe status and probability of achieving therespective development plans, and inquired ofmanagement about the feasibility of thesedevelopment plans. In addition, we evaluatedthe reasonableness of the estimate ofdevelopment costs and profitability that
underlay the development plans by comparing
them against the information published byexternal sources.

Mitsui Fudosan Co., Ltd.

45

The appropriateness of revenue recognition for sale of rental housing and office buildings and otherto investors in the Property Sales segment
The key audit matter

How the matter was addressed in our audit

As described in Note 24. “Segment Information” tothe consolidated financial statements, revenue fromoperations of ¥1,905,643 million recognized in the
Company’s consolidated statement of income forthe current fiscal year included revenue fromoperations of ¥524,095 million in the Property
Sales segment, which accounted for approximately
28% of the consolidated revenue from operations.
Of revenue from operations in the Property Sales
segment, the revenue recognition for sale of rental
housing and office buildings and other to investors
were related to the sale transactions using acomplex scheme, as well as revenue from an
investor with which the Company and its
consolidated subsidiaries have recurring saletransactions.

The primary procedures we performed to evaluate
whether revenue recognition for property sale toinvestors in the Property Sales segment wasappropriate, included the following:

Revenue from property sale varies widely fromtransaction to transaction, and the amount of eachtransaction tends to be relatively large. In
particular, for transactions involving special
purpose entities using a complex scheme or to an
investor with which the Company has recurring
sale transactions, significant judgments regarding,for example, the economic reasonableness of thesale terms and conditions, the appropriateness of aselling price, and the reasonableness of an overall
transaction, are involved in determining whether
substantially all of the risks and rewards of theproperty were transferred, which must be satisfied
for a sale treatment.
We, therefore, determined that the appropriatenessof revenue recognition for property sale to investors
in the Property Sales segment was of mostsignificance in our audit of the consolidated
financial statements for the current fiscal year, andaccordingly, a key audit matter.

46

Mitsui Fudosan Co., Ltd.

(1) Internal control testing
We tested the design and operating effectivenessof the Company’s certain internal controls
relevant to the revenue recognition for property
sales to investors in the Property Sales segment.
(2) Evaluation of the appropriateness ofdetermining the transfer of risks and rewards
 We inspected the final approval document,
agreed the evidence including the real-estatesale agreement and confirmation of propertytransfer to the accounting records, as well as
evaluated the economic reasonableness ofproperty sale terms and conditions based on
our understanding of an overall scheme
including the buyer; We evaluated the appropriateness of theselling price by inspecting the real-estate saleagreement and comparing the future cash
flows and discount rates reflected in the
selling price against the actual cash flows andother relevant information published byexternal sources; and We obtained an understanding of thecontractual terms and conditions for
repurchase by inspecting the final approval
document and the real-estate sale agreement,
and evaluated the reasonableness of sales
transaction, giving consideration to the extent
of continuing involvement in the property
after the sale.

Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for
the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern inaccordance with accounting principles generally accepted in Japan.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’
performance of their duties including the design, implementation and maintenance of the Group’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with auditing standards generally accepted in Japan will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.

Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, while the objective of the audit is not to express an opinion
on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting andbased on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Group to cease to continue as agoing concern.



Evaluate whether the presentation and disclosures in the consolidated financial statements are inaccordance with accounting standards generally accepted in Japan, the overall presentation, structure
and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

Mitsui Fudosan Co., Ltd.

47



Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.

We communicate with corporate auditors and the board of corporate auditors regarding, among othermatters, the planned scope and timing of the audit, significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we havecomplied with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.
From the matters communicated with corporate auditors and the board of corporate auditors, we determine
those matters that were of most significance in the audit of the consolidated financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year
ended March 31, 2020 are presented solely for convenience. Our audit also included the translation of yen
amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis
described in Note 1 to the consolidated financial statements.

48

Mitsui Fudosan Co., Ltd.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of
the Certified Public Accountants Act of Japan.

/S/Hiroyuki Yamada
Designated Engagement Partner
Certified Public Accountant/S/Hiroyuki Itoh
Designated Engagement Partner
Certified Public Accountant/S/Hironori Hashizume
Designated Engagement Partner
Certified Public Accountant
KPMG AZSA LLC
Tokyo Office, Japan
June 26, 2020
Notes to the Reader of Independent Auditor’s Report:
This is a copy of the Independent Auditor’s Report and the original copies are kept separately by theCompany and KPMG AZSA LLC.

Mitsui Fudosan Co., Ltd.

49

Appendix
1. History
Mitsui Fudosan Co., Ltd. was founded on July 15, 1941, as part of
the reorganization of Mitsui Company by Mitsui management. It
was founded with three million yen in capital and tasked withmanaging the real estate owned by Mitsui Company.
Since its founding, the Company’s primary business has beenleasing and managing real estate such as office buildings. However, we have been diversifying operations since the mid-1950’s,
and in 1957, we launched a marine land reclamation business by
beginning a process of dredging and reclamation in a coastal
region of Chiba Prefecture. In 1961, we began a business fordeveloping and selling land for residential use and since 1968, we

July
May
October
February
December
April
July
April
OctoberMay
September
December
September
OctoberMay
September
March
April
September
January
April
DecemberJanuary
April
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February
July
September
September
December
March
March
OctoberJuly
DecemberJanuary
April
July
September
February
OctoberMarch

50

2. Mitsui Fudosan’s Businesses
have also been constructing and selling condominiums anddetached housing.
In recent years, the Mitsui Fudosan Group’s main businesses
are office building leasing, retail property leasing, and residential
property sales. We also operate other businesses including ahotel and resorts business, a logistics business, a consulting
business, a property management business, and overseas
businesses.
Below is an overview of how the Group’s business has developed to date.

1941 Mitsui Fudosan established (capital: 3 million yen)1949 Stock listed on the First Section of the Tokyo Stock Exchange
1956 Absorption of Mitsui Company by Mitsui Fudosan
1962 Osaka Branch Office (now Kansai Head Office) opened
1966 Construction of Yurigaoka Residential Land Development Phase 1 completed
1968 Construction of Kasumigaseki Building completed
1969 Mitsui Real Estate Sales Co., Ltd. established1972	Sapporo Branch Office (now Hokkaido Branch Office), Hiroshima Branch Office (now Chugoku Branch Office), andFukuoka Branch Office (now Kyushu Branch Office) opened
1972 Nagoya Branch Office (now Chubu Branch Office) opened
1973 Mitsui Fudosan America, Inc. established1973 Absorption of Shin-Nagoya Building Co., Ltd. by Mitsui Fudosan
1973 Sendai Branch Office (now Tohoku Branch Office) opened
1974 Construction of Shinjuku Mitsui Building completed
1974 Mitsui Home Co., Ltd. and Mitsui Fudosan Construction Co., Ltd. established1980 “Let’s” system of joint development launched
1980 Construction of Suncity fully completed
1981 Mitsui Fudosan (Singapore) Pte. Ltd. established1981 LaLaport Funabashi Shopping Center (now Mitsui Shopping Park LaLaport TOKYO-BAY) opened
1983 HALEKULANI opened
1984 Mitsui Garden Hotel Osaka (now Mitsui Garden Hotel Osaka Yodoyabashi) opened
1988 Yokohama Branch Office opened
1989 Mitsui Fudosan America Group established1990 Mitsui Fudosan (U.K.) Ltd. established1990 Chiba Branch Office opened
1992 Mitsui Fudosan (Singapore) Pte. Ltd. renamed as Mitsui Fudosan (Asia) Pte. Ltd.
1993 Mitsui Home Co., Ltd. stock listed on the Second Section of the Tokyo Stock Exchange
1993 Construction of Bell Park City fully completed
1994 Mitsui Home Co., Ltd. stock listed on the First Section of the Tokyo Stock Exchange
1998 Yokohama Bayside Marina Shops & Restaurants (now MITSUI OUTLET PARK YOKOHAMA BAYSIDE) opened
1999 Absorption of Mitsui Fudosan America, Inc. by Mitsui Fudosan America Group
2000 Mitsui Fudosan America Group renamed as Mitsui Fudosan America, Inc.
2002 All shares of Mitsui Fudosan Construction Co., Ltd. sold2002 Mitsui Real Estate Sales Co., Ltd. made into a full subsidiary through a share exchange
2005 Construction of Nihonbashi Mitsui Tower completed
2005 Mitsui Fudosan Residential Co., Ltd. established2007 Construction of TOKYO MIDTOWN completed
2012 Mitsui Real Estate Sales Co., Ltd. renamed as Mitsui Fudosan Realty Co., Ltd.
2014 Kashiwa-no-ha Smart City Gate Square opened
2014 Construction of MFLP Sakai completed
2018 Construction of TOKYO MIDTOWN HIBIYA completed
2018	Mitsui Home Co., Ltd. made into a full subsidiary through a tender offer (and delisted from the First Section of theTokyo Stock Exchange)
Construction of 55 Hudson Yards completed
2019 Construction of Nihonbashi-Muromachi Mitsui Tower completed

Mitsui Fudosan Co., Ltd.

Descriptions of the main businesses operated by Mitsui Fudosan
and our 365 subsidiaries and affiliates (comprising 275 consolidated subsidiaries and 90 equity method affiliates) as well as thenames of the main companies engaging in each business andhow these companies are positioned within the business are as
follows.

Leasing
Mitsui Fudosan leases properties such as office buildings andretail facilities. Mitsui Fudosan America, Inc. and Mitsui Fudosan(U.K.) Ltd. (both consolidated subsidiaries) lease properties suchas office buildings in the U.S. and U.K. respectively. Mitsui
Fudosan (Asia) Pte. Ltd. and Mitsui Fudosan Taiwan Co., Ltd.
(both consolidated subsidiaries) lease retail facilities in Malaysia
and Taiwan.

Property Sales
Mitsui Fudosan sells properties such as business facilities. Mitsui
Fudosan Residential Co., Ltd. (a consolidated subsidiary) sells
properties such as detached housing and condominiums. TID Pte.
Ltd. (an equity method affiliate), Mitsui Fudosan America, Inc. and
Mitsui Fudosan (U.K.) Ltd. sell properties in Singapore, the U.S.
and U.K. respectively.

Management
Property Management
Mitsui Fudosan Facilities Co., Ltd. and Mitsui Fudosan Facilities
West Co., Ltd. (both consolidated subsidiaries) are the main
companies responsible for carrying out management, cleaning,
maintenance, and other tasks for the leasing business. Mitsui
Fudosan commissions Mitsui Fudosan Building Management Co.,
Ltd. (a consolidated subsidiary) and Mitsui Fudosan Facilities
West Co., Ltd. to manage some of its office buildings. Mitsui
Fudosan Retail Management Co., Ltd. (a consolidated subsidiary)
carries out the management and operation of retail facilities. Also,
Mitsui Fudosan Residential Services Co., Ltd. and Mitsui Fudosan
Residential Service Kansai Co., Ltd. (both consolidated subsidiaries) carry out the post-sale management, cleaning, maintenance,and other tasks for properties. Mitsui Fudosan Residential Lease
Co., Ltd. (a consolidated subsidiary) acts as an agent for subleasing and managing rental housing. MITSUI HOME ESTATE Co.,
Ltd. (a consolidated subsidiary) offers rental housing intermediaryand property management services. Mitsui Fudosan Realty Co.,
Ltd. (a consolidated subsidiary) operates Repark, a business
offering hourly and monthly car park leasing.

Other
New Construction
Mitsui Home Co., Ltd. (a consolidated subsidiary) and each franchise company provides the design, construction management,
and sub-contracting construction of new-build homes.
Facility Operations
Mitsui Fudosan Hotel Management Co., Ltd. (a consolidated
subsidiary) operates hotels, primarily those leased from Mitsui
Fudosan. Mitsui Fudosan America, Inc. operates hotels in Hawaii,USA. Imperial Hotel, Ltd.* (an equity method affiliate) operates
hotels. Mitsui Fudosan Golf Properties K.K. and MITSUI-NOMORI Co., Ltd. (both consolidated subsidiaries) operate golfcourse businesses. Ise-Shima Resort Management Co., Ltd. andHaimurubushi Co., Ltd. (both consolidated subsidiaries) operate
resort facilities leased from Mitsui Fudosan.
Other
Mitsui Designtec Co., Ltd. and Mitsui Fudosan Reform Co., Ltd.
(both consolidated subsidiaries) carry out renovation work forhomes and renewal work for offices and retail facilities. Daiichi
Engei Co., Ltd. (a consolidated subsidiary) is a retailer of flowers
and ornamental plants, seeds, and other gardening products.
Mitsui Fudosan TG Smart Energy Co., Ltd. (a consolidated subsidiary) operates a specified electricity transmission and distribution
and heat supply business.
*Stock of Imperial Hotel, Ltd. (an equity method affiliate) is listedon the Second Section of the Tokyo Stock Exchange.

Brokerage, Asset Management, etc.
Mitsui Fudosan operates a business offering consultation regarding the development and securitization of real estate. Mitsui
Fudosan Residential Co., Ltd. operates a sales agency for housing
and other properties. Mitsui Fudosan Realty Co., Ltd. operates a
brokerage business for the sale, leasing, and renting of realestate through the Mitsui Rehouse network. Mitsui Fudosan
Investment Advisors, Inc. (a consolidated subsidiary) sets up andmanages private placement real estate funds. Nippon Building
Fund Management Ltd., Mitsui Fudosan Accommodations FundManagement Co., Ltd., Mitsui Fudosan Logistics REIT Management Co., Ltd., and Mitsui Fudosan Frontier REIT Management
Inc. (all consolidated subsidiaries) operate an asset managementbusiness for real estate investment funds. Mitsui Fudosan(Shanghai) Consulting Co., Ltd., Mitsui Fudosan Consulting (Beijing) Co., Ltd., and Mitsui Fudosan Consulting (Guangzhou) Co.,
Ltd. (all consolidated subsidiaries) operate consulting businesses
based in China.

Mitsui Fudosan Co., Ltd.

51

Appendix

3. Current Subsidiaries and Affiliates
The following organization chart shows how the businesses ofthe main subsidiaries and affiliates mentioned above relate to
Mitsui Fudosan’s business.

Leasing(A) Consolidated Subsidiaries

Property Sale

Mitsui FudosanCo., Ltd.

Office Buildings
GlobalMitsui Fudosan America, Inc.
Mitsui Fudosan (U.K.) Ltd.

GlobalTID Pte. Ltd.
Mitsui Fudosan America, Inc.
Mitsui Fudosan (U.K.) Ltd
OthersRetail Facilities

OthersOther

Property Sales

Mitsui Home Co., Ltd.
Facility Operations
Mitsui Fudosan Hotel Management
Co., Ltd.

Management

Mitsui Fudosan Golf Properties K.K.
Ise-Shima Resort Management
Co., Ltd.
MITSUI-NO-MORI Co., Ltd.
Haimurubushi Co., Ltd.
Imperial Hotel, Ltd.
OthersOther
Mitsui Designtec Co., Ltd.
Mitsui Fudosan Reform Co., Ltd.
Daiichi Engei Co., Ltd.
Mitsui Fudosan TG Smart EnergyCo., Ltd.
Others52

Mitsui Fudosan Co., Ltd.

Other

Residential Property Management and Operation

New Construction

GlobalMitsui Fudosan America, Inc.

Lease Management and Operation

Leasing

Minato-ku, Tokyo

10 Management

100.0

Ise-Shima Resort
Management Co., Ltd.

Shima, Mie

50 Other

100.0

Leasing resort— facilities from
Mitsui Fudosan.

Wave Real Estate Co., Ltd.

Chuo-ku, Tokyo

90

Leasing,
Property sales

100.0

—

NBF Office Management
Co., Ltd.

Chuo-ku, Tokyo

10 Management

100.0

Commissioned by— Mitsui Fudosan to
manage buildings.

MF Service Apartment Co.,Ltd.

Chuo-ku, Tokyo

10 Management

100.0

31 VENTURES Global
Innovation Fund L.P.

Shibuya-ku,
Tokyo

4,000 Other

MF Living Support Co., Ltd.

Koto-ku, Tokyo

Name

Location

Accommodation First Co.,Ltd.

Capital(¥million)

Portionindirectly
owned

Relationship with
Mitsui Fudosan

Renting
officespace
from
Mitsui
FudosanMitsui
Fudosanofficers
amongconcurrent
officers

Officers in
concurrent
posts

Mitsui Fudosan Residential Co., Ltd.

OthersGlobalMitsui Fudosan (Asia) Pte. Ltd.
Mitsui Fudosan Taiwan Co., Ltd.

Business

Proportion of
voting rights
owned by
Mitsui
FudosanManagement
Property Management
Mitsui Fudosan Building Management
Co., Ltd.
Mitsui Fudosan Facilities Co., Ltd.
Mitsui Fudosan Facilities West Co., Ltd
Mitsui Fudosan Retail Management
Co., Ltd.
Mitsui Fudosan Residential Services
Co., Ltd.
Mitsui Fudosan Residential Service
Kansai Co., Ltd.
Mitsui Fudosan Residential Lease
Co., Ltd.
MITSUI HOME ESTATE Co., Ltd.
OthersSumai Support Co., Ltd.

Brokerage, Asset Management,
etc.

Mitsui Fudosan Taiwan Co.,
Taipei, Taiwan
Ltd.

Mitsui Fudosan Residential Co., Ltd.
Mitsui Fudosan Realty Co., Ltd.
Mitsui Fudosan Investment Advisors, Inc.
Nippon Building Fund Management Ltd.
Mitsui Fudosan Accommodations
Fund Management Co., Ltd.
Mitsui Fudosan Frontier REITManagement Inc.
Mitsui Fudosan Logistics REITManagement Co., Ltd.

Daiasama Golf Co., Ltd.

Kitasaku, Nagano

Daiichi Engei Co., Ltd.

Shinagawa-ku,
Tokyo

Tsunamachi Club Co., Ltd.

Minato-ku, Tokyo

GlobalMitsui Fudosan (Shanghai)Consulting Co., Ltd.
Mitsui Fudosan Consulting (Beijing)Co., Ltd.
Mitsui Fudosan Consulting (Guangzhou)
Others

100.0

4

4

7

7

Yes

4

4

Yes

4

4

—

4

4

99.0

—

0

0

100 Management

100.0

100.0

2

2

Kashimada Station Western
Kawasaki,
Area Redevelopment Co.,
Kanagawa
Ltd.

74 Property sales

98.6

78.7

4

3

Kyushin Kaihatsu Inc.

Usuki, Oita

120 Other

96.0

—

4

4

GREENCOLLAR, Inc.

Chuo-ku, Tokyo

22 Other

66.7

—

4

4

31VENTURES-Global
Brain-Growth I GK

Chuo-ku, Tokyo

2,810 Other

99.7

—

0

0

100.0

100.0

1

1

5

5

Property sales,
Management, etc.

SUNLIFE CREATION Co., Ltd. Chuo-ku, Tokyo

300

Shima Resort Management
Shima, MieCo., Ltd.

100 Other

100.0

50 Management

100.0

100.0

2

2

100.0

10.5

4

3

150 Other

86.6

1.6

4

2

480 Leasing, Other

100.0

—

6

6

Chiyoda-ku,
Tokyo

NT$1,955,785,127 Leasing

Yes

Leasing resort— facilities from
Mitsui Fudosan.

Yes

10 Other

100.0

—

4

4

TM Serviced Apartment CO.,Minato-ku, TokyoLtd.

10 Management

100.0

—

4

4

TM Park Residences Co.,Ltd.

10 Management

100.0

—

5

5

Tokyo Property Service Co.,
Chuo-ku, TokyoLtd.

10 Management

100.0

100.0

2

2

Tokyo Midtown
Management Co., Ltd.

100 Management

100.0

—

9

9

30 Other

100.0

—

4

4

Leasing resort— facilities from
Mitsui Fudosan.

5

5

1

1

1

1

Minato-ku, Tokyo

Minato-ku, Tokyo

Narita Sports Development
Narita, Chiba
Co., Ltd.
Haimurubushi Co., Ltd.

Yaeyama,
Okinawa

200 Other

100.0First Facilities Gunma Co.,Ltd.

Maebashi,Gunma

10 Management

100.0

100.0

First Facilities Chiba Co.,
Ltd.

Chiba, Chiba

20 Management

100.0

100.0

Yes

Yes

Mitsui Fudosan Co., Ltd.

53

Appendix

Mitsui
Fudosanofficers
amongconcurrent
officers

Business

Chuo-ku, Tokyo

10 Management

100.0

100.0

0

0

Mitsui Fudosan Residential
Chuo-ku, Tokyo
Co., Ltd.*1, *2

Funabashi Health Center
Co., Ltd.

Funabashi, Chiba

10 Other

100.0

100.0

1

1

Mitsui Fudosan Residential
Koto-ku, Tokyo
Services Co., Ltd.

Frontier REIT SCManagement Co., Ltd.

Chuo-ku, Tokyo

10 Management

100.0

100.0

4

4

Name

LocationFirst Facilities ChallenegedCo., Ltd.

Mitsui Designtec Co., Ltd.

Minato-ku, Tokyo

Capital(¥million)

500 Other

100.0

Portionindirectly
owned

1,000

Leasing,
Property sales

100.0

100.0

MITSUI-NO-MORI Co., Ltd.

Chino, Nagano

200 Management, other

100.0

—

Mitsui Fudosan
Architectural Engineering
Co., Ltd.

Chuo-ku, Tokyo

100 Management

100.0

—

Mitsui Fudosan
Accommodations FundManagement Co., Ltd.

Chuo-ku, Tokyo

300 Management

100.0

—

MITSUI FUDOSAN
AUSTRALIA PTY. LTD.

Sydney, Australia

100.0

Mitsui Fudosan Golf
Properties K.K.

Chuo-ku, Tokyo

490 Other

Mitsui Fudosan Consulting(Guangzhou) Co., Ltd.

Guangzhou, China

CNY2,426,130 Management

Mitsui Fudosan Consulting(Beijing) Co., Ltd.

Beijing, China

CNY2,429,160 Management

100.0

—

Mitsui Fudosan (Shanghai)Consulting Co., Ltd.

Shanghai, China

CNY7,870,440 Management

100.0

—

A$6,000,000 Leasing

Relationship with
Mitsui Fudosan

Contracted by
Mitsui Fudosan for— office and retailproperty interior
work, etc.

MITSUI DEVELOPMENT CO.,
Chuo-ku, Tokyo
LTD

Yes

Officers in
concurrent
posts

5

Name

5

Business

40,000

Leasing, Property
sales, etc.

490 Management

100.0

—

Yes

10

4

400 Management

100.0

100.0

Yes

7

7

Mitsui Fudosan Residential
Osaka, Osaka
Service Kansai Co., Ltd.

300 Management

100.0

100.0

Yes

4

4

Mitsui Fudosan Residential
Fukuoka, Fukuoka
Service Kyushu Co., Ltd.

100 Management

100.0

100.0

Yes

1

1

Mitsui Fudosan Residential Hiroshima,
Service Chugoku Co., Ltd.
Hiroshima

100 Management

100.0

100.0

Yes

1

1

Mitsui Fudosan Residential
Sendai, Miyagi
Service Tohoku Co., Ltd.

100 Management

100.0

100.0

Yes

1

1

Mitsui Fudosan Residential Sapporo,
Service Hokkaido Co., Ltd. Hokkaido

100 Management

100.0

100.0

Yes

1

1

6

6

Mitsui Fudosan Logistics
Chuo-ku, Tokyo
REIT Management Co., Ltd.

200 Management

100.0

—

Yes

5

5

5

5

Mitsui Fudosan Loan Credit
Chuo-ku, Tokyo
Co., Ltd.

100 Other

100.0

Guarantees loans— for properties soldby Mitsui Fudosan.

Yes

4

4

—

3

3

Mitsui Fudosan Reform Co., Shinjuku-ku,
Ltd.
Tokyo

300 Other

100.0

—

Yes

7

6

100.0

—

4

4

100.0

—

5

Yes

Minato Estate Co., Ltd.

Chuo-ku, Tokyo

110 Other

100.0

—

4

4

LaLaport Agency Co., Ltd.

Chuo-ku, Tokyo

20 Management

100.0

100.0

7

7

4

RESIDENT FIRST Co., Ltd.

Minato-ku, Tokyo

10 Management

100.0

100.0

5

5

5

4

Nippon Building FundManagement Ltd.*3

Chuo-ku, Tokyo

495 Management

46.0

—

4

4

5

4

100.0

Commissioned by
Mitsui Fudosan to
100.0
manage rental
housing.

Yes

7

7

Yes

10

8

100.0

Mitsui Fudosan TG Smart
Energy Co., Ltd.

Chuo-ku, Tokyo

100 Other

70.0

—

Yes

5

5

490 Management

100.0

—

Yes

5

4

100.0

Commissioned by— Mitsui Fudosan to
manage buildings.

100.0

Commissioned by
Mitsui Fudosan to
manage, clean, and—maintain properties
and adjacentfacilities.

Chuo-ku, Tokyo

490 Management

Yes

9

6

Location

Capital(¥million)

Business

Proportion of
voting rights
owned by
Mitsui
Fudosan

Yes

13

11

Osaka, Osaka

200 Management

100.0

100.0

Yes

3

3

Mitsui Fudosan Frontier
REIT Management Inc.

Chuo-ku, Tokyo

450 Management

100.0

—

Yes

6

6

Mitsui Fudosan HotelManagement Co., Ltd.

Chuo-ku, Tokyo

490 Other

100.0

—

Yes

7

6

Leasing hotels from
Mitsui Fudosan.

Portionindirectly
owned

Relationship with
Mitsui Fudosan

Renting
officespace
from
Mitsui
FudosanMitsui
Fudosanofficers
amongconcurrent
officers

Officers in
concurrent
posts

MFA Holding, Inc.

Wilmington,
Delaware, U.S.A.

US$1,000

Leasing, Property
sales, etc.

100.0

—

3

2

Mitsui Fudosan Amerida,
Inc.

Newark,Delaware, U.S.A.

US$722,000

Leasing, Property
sales, etc.

100.0

100.0

3

2

7

6

3

2

7

1

Mitsui Fudosan (Asia) Pte.
Ltd.

Singapore—
S$103,863,128

Leasing, Property
sales, etc.

100.0

11 other Mitsui Fudosan (Asia) Pte. Ltd. Group
companies
Mitsui Fudosan (U.K.) Ltd.*1 London, U.K.

Mitsui Fudosan Facilities
West Co., Ltd.

Mitsui Fudosan Co., Ltd.

Name

Yes

—

93 other MFA Holding, Inc. Group companies

490 Management

Officers in
concurrent
posts

4

450 Management

Chuo-ku, Tokyo

Relationship with
Mitsui Fudosan

4

Yes

Chuo-ku, Tokyo

Mitsui Fudosan Investment
Chuo-ku, Tokyo
Advisors, Inc.

Portionindirectly
owned

Mitsui
Fudosanofficers
amongconcurrent
officers

1

Commissioned by
Mitsui Fudosan to—
manage retailfacilities, etc.

Mitsui Fudosan Facilities
Co., Ltd.

Capital(¥million)

Renting
officespace
from
Mitsui
Fudosan1

Mitsui Fudosan RetailManagement Co., Ltd.

Mitsui Fudosan Building
Management Co., Ltd.

Location

Proportion of
voting rights
owned by
Mitsui
Fudosan

56 other companies

Mitsui Fudosan Residential Shinjuku-ku,
Lease Co., Ltd.
Tokyo

54

Renting
officespace
from
Mitsui
Fudosan

Proportion of
voting rights
owned by
Mitsui
Fudosan—£477,250,000

Leasing, Property
sales

100.0

28 other Mitsui Fudosan (U.K) Ltd. Group
companies
Mitsui Fudosan Realty Co.,Ltd.

Chiyoda-ku,Tokyo

7 other Mitsui Fudosan Realty Co., Ltd. Group
companies

40.0

—
—

20,000 Management

100.0

—

Yes

—

Mitsui Fudosan Co., Ltd.

55

Appendix(B) Equity Method Affiliates

Name

Mitsui Home Co., Ltd.

Location

Capital(¥million)

Shinjuku-ku,
Tokyo

Business

13,900 Other

Proportion of
voting rights
owned by
Mitsui
Fudosan
100.0

Portionindirectly
owned

—

MITSUI HOME ESTATE Co., Chiyoda-ku,
Ltd.
Tokyo

100 Management

100.0

100.0

MITSUIHOMEENGINEERING Co., LTD.

Setagaya-ku,
Tokyo

100 Other

100.0

Mitsui Home Components
Co., Ltd.

Chuo-ku, Tokyo

300 Other

100.0

MITSUIHOME LINKAGE Co., Shinjuku-ku,
Ltd.
Tokyo

300 Other

8 other Mitsui Home Co., Ltd. Group companies

100.0

Relationship with
Mitsui Fudosan

Renting
officespace
from
Mitsui
FudosanYes

Officers in
concurrent
posts

9

Name

6

0

0

100.0

0

0

100.0

0

0

100.0

Yes

Mitsui
Fudosanofficers
amongconcurrent
officers0—0Location

Capital(¥million)

Business

Imperial Hotel, Ltd.*1

Chiyoda-ku,
Tokyo

1,485

TID PTE. LTD.

Singapore

S$10,000,000

RESOL HOLDINGS CO.,
LTD.*1

Shinjuku-ku,Tokyo

Keiyo Tochi Kaihatsu Co.,Ltd.

Chiyoda-ku,
Tokyo

SENON LIMITED

Shinjuku-ku,
Tokyo

ST. LUKE‘S TOWERS Co.,Ltd.

Chuo-ku, Tokyo

100

Kyushu Kumamoto
International Airport Co.,Ltd.

Village Shonan, Inc.*2

Proportion of
voting rights
owned by
Mitsui
Fudosan

3. *2: Mitsui Fudosan Residential Co., Ltd.’s revenue (excluding inter-company sales between consolidated companies) accounts for over 10% ofconsolidated revenue from operations. The main financial information of the company is as below.
(1) Revenue from operations ¥328,609 million(2) Ordinary income ¥44,963 million(3) Net profit ¥33,170 million

—

2

0

Property sales toindividuals

49.0

—

4

3

3,948

Operation of resort
facilities, etc.

41.0

—

3

2

400

Real estatebusiness

33.3

—

2

2

781 Security business

20.7

Commissioned toprovide security for—
Mitsui Fudosanbuildings.

Yes

1

1

Building leasebusiness

42.5

Rents properties— from Mitsui
Fudosan.

Yes

2

2

Kamimashiki,
Kumamoto

Management andoperation of Kyushu
5,840 Kumamoto
International
Airport

28.8

—

2

2

Miura, Kanagawa

494Management andoperation of
Shonan Village
Center

16.0

—

1

1

CNY337,600,000

Operation of retailfacilities, etc.

36.0

36.0

1

1

Surveillance
133 camera and systembusiness, etc.

38.2

—

3

2

(5) Total assets ¥897,363 million

Shanjing Business
Administration (Ningbo) Co., Ningbo, China
Ltd.
CREW SYSTEMS, INC.

Officers in
concurrent
posts

33.2

(4) Net assets ¥142,346 million
4. *3: Although Mitsui Fudosan owns less than 50% of voting rights, it effectively holds control of the company and therefore classifies it as a
subsidiary.

Relationship with
Mitsui Fudosan

Mitsui
Fudosanofficers
amongconcurrent
officers

Hotel management
and operation

Note 1. The ”Business”column uses the name of the business segment.
2. *1: Qualifies as a specified subsidiary.

Portionindirectly
owned

Renting
officespace
from
Mitsui
FudosanChiyoda-ku,
Tokyo

Yes

Yes

5 other Mitsui Home Co., Ltd. Group companies
40 other Mitsui Fudosan (Asia) Pte. Ltd. Group companies
8 other Mitsui Fudosan (U.K) Ltd. Group companies
8 other MFA Holding, Inc. Group companies
19 other companies
Notes 1. *1: Submits a securities report.
2. * 2: Although Mitsui Fudosan owns less than 20% of voting rights, it effectively holds influence over the company and therefore classifies it as anaffiliate.

56

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

57

Appendix

4. Major Properties(A) LEASING SEGMENT(1) Properties
Company Name

Property Name (Location)

Mitsui Main Building(Chuo-ku, Tokyo)
Mitsui
FudosanCo., Ltd.

Mitsui Building No. 2(Chuo-ku, Tokyo)
Nihonbashi Mitsui
Tower (Chuo-ku, Tokyo)

Mitsui
FudosanCo., Ltd.
M Three Real
Estate Co. Ltd.
Murosan Real
Estate Co., Ltd.

Nihonbashi Muromachi
Mitsui Tower (Chuo-ku,
Tokyo)

Company Name
Type of
Property

OfficeMar.
1929

OfficeSteel-reinforced concrete structure
11 floors above ground3 basement floors

Feb.
1985

OfficeSteel construction / steel-reinforcedJul.
concrete structure (portion)2005
39 floors above ground4 basement floors

Office,Retailproperty

Reinforced concrete structure /steel-reinforced concrete structure(portion)
26 floors above ground3 basement floors

26,490Mitsui Fudosan
Nihonbashi Astellas
Co., Ltd.
Mitsui Building
Lotus Estate Co.,
(Chuo-ku, Tokyo)
Ltd.

14,256

Building

Land

6,204

Other

Total

21

122,472

28,381

151,579*1 10,255 *1*2

25,439*1

Book Value (Millions of Yen)

2,305

133,727

Steel construction / steel-reinforced
Office,concrete structure (portion) /Muromachi
Feb.
Retailreinforced
Furukawa Mitsui Building
property, concrete structure (portion)
2014(Chuo-ku, Tokyo)
Residence 22 floors above ground4 basement floors

267

160,142489

87,041 108,443

5,890 201,375

Mitsui FudosanCo., Ltd.

Steel construction / steel-reinforced
concrete structure (portion) /Feb.
reinforced
concrete structure (portion)
2014
17 floors above ground4 basement floors

13,380*1

Office,Retailproperty

Steel construction / steel-reinforcedJan.
concrete structure (portion)
20 floors above ground2004
4 basement floors

98,063

OfficeSteel construction / reinforced
concrete structure / steel-reinforcedJan.
concrete structure
2013
17 floors above ground2 basement floors

Office,Retailproperty

Total Land
Area (m2)32,24540,363

Nihonbashi 1-Chome
Mitsui Building(Chuo-ku, Tokyo)

26,5162,454

1,534*1

771*1*2

8,185

2,364

9,650

5,050

2,669

14,336

5,472

25,088

7,487

8,398

66,03921,338

185

153

87

217

97

34,925

Land

Other

Total

Kasumigaseki Building(Chiyoda-ku, Tokyo)

OfficeSteel construction / steel-reinforcedApr.
concrete structure (portion)
1968
36 floors above ground3 basement floors

145,494*1

8,264*1*2

15,571

1,556

901

18,029Shin-Kasumigaseki
Building (Chiyoda-ku,
Tokyo)

OfficeSteel construction / steel-reinforcedFeb.
concrete structure (portion)1987
20 floors above ground3 basement floors

14,895*1

2,891*1

1,072

16,597

11

17,681Toranomon Mitsui Building
Office(Chiyoda-ku, Tokyo)

Steel construction / steel-reinforced
Sep.
concrete structure (portion)1972
14 floors above ground2 basement floors

23,606

3,264

1,296

32,29257

33,646

Marunouchi Mitsui
Building (Chiyoda-ku,
Tokyo)

Steel-reinforced concrete structure
11 floors above ground2 basement floors

Feb.
1981

20,373

1,851

2,923

23,69028

26,641

Jimbocho Mitsui Building
Office(Chiyoda-ku, Tokyo)

Steel construction / steel-reinforced
Mar.
concrete structure (portion)
2003
23 floors above ground2 basement floors

13,361*1

1,235*1

3,503

7,975

19

11,498Gran Tokyo North Tower(Chiyoda-ku, Tokyo)

OfficeSteel construction / steel-reinforced
concrete structure (portion) /Oct.
reinforced
2007
concrete structure (portion)
43 floors above ground4 basement floors

82,001*1

3,723*1

13,571

43,778141

57,49189,282*1

7,965*1

20,18070,668476

91,325

Office189,245

10,70285,422 121,375

11,155Hibiya U-1 Building(Chiyoda-ku, Tokyo)

OfficeSteel-reinforced concrete structure
26 floors above ground4 basement floors

Mar.
2018

50,848

5,065

1,790

Otemachi One Tower(Chiyoda-ku, Tokyo)

OfficeSteel-reinforced concrete structure
40 floors above ground5 basement floors

Feb.
2020

108,232*1

6,306*1

51,671 158,154

Chorus Property

Aoyama OM-SQUARE(Minato-ku, Tokyo)

OfficeSteel construction / steel-reinforcedJul.
concrete structure (portion)2008
25 floors above ground3 basement floors

14,603*1

2,040*1

2,701

8,903

38

11,643

Mitsui FudosanCo., Ltd.

Shiodome City Center(Minato-ku, Tokyo)

OfficeSteel construction / steel-reinforcedJan.
concrete structure (portion)2003
43 floors above ground4 basement floors

15,775*1

1,322*1

1,852

9,468

14

11,335

Steel construction / steel-reinforced
Office,concrete structure (portion) /Jan.
Retailreinforced
2007
property, concrete structure (portion)
Residence 54 floors above ground5 basement floors

281,901*1

34,465*1

43,483 148,163

1,464 193,111

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

75,178*1

5,407*1*2

30,815

1,612

80,593

26,907

OfficeReinforced concrete structure /steel-reinforced concrete structure
32 floors above ground5 basement floors

Jun.
2018

83,746

Yaesu Mitsui Building(Chuo-ku, Tokyo)

OfficeSteel-reinforced concrete structure
10 floors above ground3 basement floors

Jun.
1965

22,520*1

Retailproperty

Steel-reinforced concrete structure
10 floors above ground2 basement floors

Sep.
2004

13,662*1

1,316*1

2,338

7,832

43

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

Jul.
2010

80,0475,430

15,50189,148125 104,776

Mitsui Fudosan Co., Ltd.

Building

Steel construction / steel-reinforcedFeb.
concrete structure (portion)
2018
35 floors above ground4 basement floors

Nihonbashi Takashimaya
Mitsui Building (Chuo-ku,
Tokyo)

Kojun Building(Chuo-ku, Tokyo)

Total Land
Area (m2)

Office,TOKYO MIDTOWN HIBIYA
Retail(Chiyoda-ku, Tokyo)
property

1,358

*1

Book Value (Millions of Yen)

Total Floor
Area (m2)

Office,Retailproperty

16,4452

Date ofConstruction
Completion/
Acquisition

Iidabashi Grand Bloom(Chiyoda-ku, Tokyo)

Oct.
2019

33,188Structure and Scale

12,691

Reinforced concrete structure
9 floors above ground4 basement floors

2,647Type of
Property

Steel construction / steel-reinforced
concrete structure (portion) /Jun.
reinforced
2014
concrete structure (portion)
30 floors above ground2 basement floors

Suruga Building (Chuo-ku,
OfficeTokyo)

Sumitomo Mitsui Banking
Corporation Head Office
OfficeBuilding(Chiyoda-ku,Tokyo)

58

Mar.
2019

Total Floor
Area (m2)

Steel construction / steel-reinforced
concrete structure (portion) /Oct.
reinforced
concrete structure (portion)2010
22 floors above ground4 basement floors

Muromachi Chibagin
Mitsui Building(Chuo-ku, Tokyo)

Mitsui FudosanCo., Ltd.

Date ofConstruction
Completion/
Acquisition

Steel-reinforced concrete structure
7 floors above ground2 basement floors

Muromachi Higashi Mitsui Office,
Building
Retail(Chuo-ku, Tokyo)
property

Mitsui
FudosanCo., Ltd.

Structure and Scale

Property Name (Location)

35,838*1

3,460

33,82455,776

1,148

90,7491,865*1*2

815

15,811

22

16,64910,213

Mitsui FudosanCo., Ltd.
RP Beta Tokutei
Mokuteki Kaisha
RP Gamma
Tokutei Mokuteki
KaishaTOKYO MIDTOWN
RP Eta Tokutei(Minato-ku, Tokyo)
Mokuteki Kaisha
RP Delta Tokutei
Mokuteki Kaisha
RP Epsilon
Tokutei Mokuteki
KaishaMitsui FudosanCo., Ltd.

msb Tamachi (Tamachi
Station Tower South)(Minato-ku, Tokyo)

OfficeMay
2018

62,739–3,825 210,623

18

64,5733,510 213,336

32,428Mitsui Fudosan Co., Ltd.

59

Appendix

Company Name

Mitsui FudosanCo., Ltd.

Property Name (Location)

Type of
Property

Total Floor
Area (m2)Gate City Osaki(Shinagawa-ku, Tokyo)

OfficeShinjuku Mitsui Building(Shinjuku-ku, Tokyo)

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

Retailproperty

Steel construction / steel-reinforcedAug.
concrete structure (portion)
2006
5 floors above ground
1 basement floor

164,525Jun.
201981,030Urban Dock LaLaport
TOYOSU(Koto-ku, Tokyo)
Mitsui Fudosan Industrial
Park Haneda(Ota-ku, Tokyo)

Logistics Steel construction
facility
5 floors above ground
Steel construction / reinforced
concrete structure (portion)
6 floors above ground
1 basement floor

Sep.
1974

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

Land

Other

33,612*1

5,405*1

5,874

179,697

14,44915,267 186,668

67,499*2

36,213*2

8,742

11,542

13,44520,19916,362

81

Total

1,182 203,118

785

1,056

29,72728,96069,081*1

Steel construction / steel-reinforced
concrete structure (portion) /Feb.
reinforced2012
concrete structure (portion)
30 floors above ground2 basement floors

90,356

Retailproperty

Steel construction
6 floors above ground
1 basement floor

Feb.
2007

244,154

102,030

11,777

17,073512

29,363Retailproperty

Steel construction
4 floors above ground

Oct.
2015

121,127

32,942*2

12,118–550

12,669

OfficeSteel-reinforced concrete structure /Jun.
steel construction (portion)
1988
14 floors above ground
1 basement floor

23,558Retailproperty

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

Apr.
1981

Mitsui Fudosan Logistics
Park Funabashi I(Funabashi, Chiba)

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

Oct.
2016

GATE SQUARE(Kashiwa, Chiba)

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

Mitsui FudosanCo., Ltd.
LaLaport YOKOHAMA
Kamoi Properties (Yokohama, Kanagawa)Co., Ltd.
LaLaport EBINA(Ebina, Kanagawa)
LaLaport Mitsui Building(Funabashi, Chiba)

LaLaport TOKYO-BAY(Funabashi, Chiba)

Park City Kashiwa-no-haCampus The Gate Tower
West(Kashiwa, Chiba)

LaLaport FUJIMI(Fujimi, Saitama)

Mitsui Fudosan Co., Ltd.

Residence,
Steel-reinforced concrete structure
Retail36 floors above groundproperty

Retailproperty

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

72,013*2

3,849

Jan.
2018

Feb.
2015

558

30,430Mitsui FudosanCo., Ltd.

7,799

16,272

280,529

202,156

48,166

38,771

183,858

7,068

1,842

157,850Apr.
2014

26,022Company Name

19,401

Sep.
2006

Retailproperty

Yokohama Mitsui Building
Office(Yokohama, Kanagawa)

60

Date ofConstruction
Completion/
Acquisition

Steel construction / steel-reinforced
concrete structure (portion) /Jan.
reinforced
1999
concrete structure (portion)
24 floors above ground4 basement floors

LAZONA Kawasaki(Kawasaki, Kanagawa)

Mitsui FudosanCo., Ltd.

Structure and Scale

48,91920,871

6,095

152,055

25,805

8,533

9,985

18,25723,751

Type of
Property

4,425

4,858

2,823

10,365

1,344

649

680

1,202

31,575

14,041

13,488Mitsui Fudosan(U.K.) Ltd.
(Overseas
subsidiary)

Total Land
Area (m2)

Building

Aug.
2019

164,353 119,816*2

23,455

Book Value (Millions of Yen)
Land

Other

Total

–

2,950

26,405Otemachi Tatemono
Nagoya Station Building(Nagoya, Aichi)

Office,Retailproperty

Steel-reinforced concrete structure
11 floors above ground2 basement floors

Aug.
2007

37,834

2,976

258

14,242

2

14,504

LaLaPort NAGOYA minato
RetailAQULS
property(Nagoya, Aichi)

Steel construction
4 floors above ground(6 floors above ground in part)

Sep.
2018

171,815

83,200*2

20,555–2,260

22,816

Nakanoshima Mitsui
Building(Osaka, Osaka)

OfficeSteel construction / steel-reinforcedAug.
concrete structure (portion)
2002
31 floors above ground2 basement floors

71,269

4,456

8,408

12,131

528

21,067

Yodoyabashi Mitsui
Building(Osaka, Osaka)

Office,Retailproperty

Steel construction / steel-reinforced
concrete structure (portion) /Mar.
reinforced
2008
concrete structure (portion)
16 floors above ground3 basement floors

38,838**1

3,087*1

5,197

14,55662

19,816EXPOCITY(Suita, Osaka)

Retailproperty

Steel construction
1-3 floors above ground

Nov.
2015

222,506 172,240*2

19,381–

2,093

21,475Retailproperty

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

Jul.
1999

61,961

78,205

1,483

11,096708

13,288Retailproperty

1st Stage
Steel construction
2 floors above ground2nd Stage
Steel construction
3 floors above ground

Jul.
2010

91,831 174,231*2

5,568

2,550*2

901

9,019

Office,Retailproperty

Steel construction / steel-reinforced
concrete structure (portion) /Aug.
reinforced
2014
concrete structure (portion)
20 floors above ground3 basement floors

47,714*1

3,861*1

9,126

6,707

148

15,9821251 Avenue of theAmericas (New York, New Office
York, U.S.A.)

Steel construction
54 floors above ground4 basement floors

Dec.
1986

215,308

9,232

31,26324,32515

55,604527 Madison Avenue(New York, New York,U.S.A.)

OfficeSteel construction
26 floors above ground
1 basement floor

Sep.
2008

19,472

1,082

14,477

12,218–26,69555 Hudson Yards(New York, New York,U.S.A.)

OfficeReinforced concrete structure
51 floors above ground2 basement floor

Oct.
2018

117,585*1

3,718*1

70,85046,363– 117,213

5 Hanover Square(London, U.K.)

OfficeReinforced concrete structure
7 floors above ground
1 basement floor

Mar.
2012

7,957

1,122

3,222

8,721

422

12,366

8-10 Moorgate(London, U.K.)

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

May
2014

16,7502,040*2

4,432

5,409*2

1,575

11,4181 Angel Court(London, U.K.)

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

Mar.
2017

45,384

3,925*2

14,525 11,941*2

8,103

34,570

Sapporo Mitsui JP
Building(Sapporo, Hokkaido)

Mitsui Fudosan
America, Inc.
(Overseas
subsidiary)

Total Floor
Area (m2)

Retailproperty

MITSUI OUTLET PARKSHIGA RYUO
(Gamo, Shiga)

3,041

Date ofConstruction
Completion/
Acquisition

LaLaport NUMAZU(Numazu, Shizuoka)

MITSUI OUTLET PARKMARINE PIA KOBE
(Kobe, Hyogo)

74,820

Structure and Scale

RetailSteel construction
4 floors above ground
Parking Tower
Steel construction
5 floors above ground29

20,98751,000410

Property Name (Location)

29,826

Mitsui Fudosan Co., Ltd.

61

Appendix

5. Strategic Shareholdings(A) Standards and Approach to the Classification of Investment SharesCompany Name

Sanxin Outlets
Co., Ltd.
(Overseas
subsidiary)

Property Name (Location)

Type of
Property

Date ofConstruction
Completion/
Acquisition

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

Jan
2016

Retailproperty

Reinforced concrete structure
1 floors above ground(2 floors above ground in part)

Dec.
2018

Type of
Property

Structure and Scale

MITSUI OUTLET PARK
RetailLINKOU
property(New Taipei City, Taiwan)

San Zhong Gong
MITSUI OUTLET PARK
Outlet Co., Ltd.
TAICHUNG PORT(Overseas(Taichung City, Taiwan)
subsidiary)

Structure and Scale

Book Value (Millions of Yen)

Total Floor
Area (m2)

Total Land
Area (m2)

Building

53,20047,138*2

11,179Land–

79,790 177,932*2

6,274

–

Total Floor
Area (m2)

Total Land
Area (m2)

Building

–

–

2,574

–

–

–

5,760*1– 109,356

Other

Total

3,291

14,470

3,030

9,304

(2) Others
Company Name

Property Name (Location)

Mitsui FudosanCo., Ltd.

Chuo-ku, TokyoLand

Plannedconstruction
site

Mitsui Fudosan
America, Inc.
(Overseas
subsidiary)

New York, New York,U.S.A.
Land

Plannedconstruction
siteBook Value (Millions of Yen)
Land

Other

12,251

Total–

12,251– 109,356

Note: Land includes leasehold. Other is tangible fixed 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 anequity interest.
*2 Land includes the area and amount corresponding to leasehold.

In overall consideration for business strategy and relationships
with business partners, to improve the Group’s corporate value,
Mitsui Fudosan holds shares considered effective formanagement strategies as shares for purposes other than net
investments from a medium- to long-term perspective.

(B) Investment Shares Held for Purposes Other Than Net Investments(1) Method for verifying policy and rationality of shareholdings and content of verificationsof individual stocks by the Board of Directors, etc.
In overall consideration for business strategy and relationships
with business partners, to improve the Group’s corporate value,
Mitsui Fudosan holds shares in listed companies that are considered effective for management strategies from a medium- tolong-term perspective as shares for purposes other than net
investments (strategic shareholdings).
Furthermore, we continuously review shareholding status.
Upon confirming the significance of shareholdings based on thequantitative rationality of holdings and relationships with business
partners, we have decided to reduce our shareholdings. In fiscal
2019, we sold 13 stock brands worth a total of ¥20.3 billion.
When verifying the rationality of shareholdings, we verify
whether or not the benefits and risks associated with the(2) Number of stocks and total amount as recorded on the balance sheet
Book Value of Shares(millions of yen)
8,510
526,658

Number of stocks(B) OTHERS
Company Name

Property Name (Location)

Type of
Property

Mitsui FudosanCo., Ltd.
Mitsui Fudosan
ResortManagement
Co., Ltd.

Halekulani Okinawa(Kunigami, Okinawa)

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

Mitsui Garden Hotel
Ginza Premier
Other domestic hotels in
15 locations

Hotel

MITSUIFUDOSANAMERICA, INC.
(Overseas
subsidiary)

Halekulani
One other overseas hotelin another location

Hotel

Structure and Scale

Date ofConstruction
Completion/
Acquisition

Total Floor
Area (m2)

Total Land
Area (m2)

Unlisted shares
Other holdingsBook Value (Millions of Yen)
Building

Land

Other

shareholdings are commensurate with the capital cost. Furthermore, in addition to confirming the significance of shareholdings
from perspectives such as transaction performance, stable funding procurement, and creation of business opportunities, we also
verify whether or not the holdings contribute to improving the
medium- to long-term corporate value of the Group.
At a meeting held on May 12, 2020, the Board of Directors
verified appropriateness with regard to the significance of strategic shareholdings based on the quantitative rationality of holding
and relationships with business partners for each stock. As aresult, we are considering selling stocks for which the rationalityof holding or significance of holding has decreased, based on
factors such as impact on the stock market.

68
60

Total

(Stocks which saw an increase in the number of shares in fiscal 2019)
Hotel

Reinforced concrete structure
10 floors above ground

–

–

May
2019

–

–

40,731

178,877*1

77,172

126,746*2

26,366*1*2

20,927*2

20,42736,801

13,055

3,907*2

8,323*2

2,672*2

5,739

3,461

2,322

Number of stocks

Total amount of transactions
to increase the number ofshares (millions of yen)

Unlisted shares

4

2,485

Other holdings

1

2,503

30,07548,586

Reason for increase
Considered effective formanagement strategies from a
medium- to long-term perspective
Considered effective formanagement strategies from a
medium- to long-term perspective

18,049(Stocks which saw a decrease in the number of shares in fiscal 2019)

Mitsui FudosanCo., Ltd.
Mitsui Fudosan
Golf Properties
Co., Ltd.
Daiasama Golf
Club Co., Ltd.
Kyusin Kaihatsu
Inc.

Mitsuinomori Karuizawa
Country ClubSix other locations

Golf
courseMitsui FudosanCo., Ltd.

Tsunamachi Mitsui Club
(Minato-ku, Tokyo)

State
guest
house

Number of stocks–

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

32,057

6,896,415*2

781

1,568*2

1,802

4,152

Feb.
1913

5,427

28,563925

23,571

171

24,668Unlisted shares
Other holdings

3
13

Total amount of sales todecrease the number ofshares (millions of yen)
020,344

Note: Land includes leasehold. Other is tangible fixed 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 anequity interest.
*2 Land includes the area and amount corresponding to leasehold.

62

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

63

Appendix(3) Information regarding the number of shares and total amount as recorded on the balance sheet for each strategic shareholding and deemed shareholdings

Current fiscal year
Stock Name

Previous fiscal year

Purpose of shareholding, quantitative effects of shareholding, andreasons for increase in number of shares
See Note 1
Book Value of Shares Book Value of Shares(Millions of Yen)
(Millions of Yen)
Number of
Shares Held

Number of
Shares Held

Strategic Shareholdings
Current fiscal year
Stock Name

Previous fiscal year

Purpose of shareholding, quantitative effects of shareholding, andreasons for increase in number of shares
See Note 1
Book Value of Shares Book Value of Shares(Millions of Yen)
(Millions of Yen)
Number of
Shares Held

29,796,900

Number of
Shares Held30,757,200

Oriental Land Co., Ltd.
397,575

6,493,466

380,751

6,493,466

Mitsui & Co., Ltd.
10,285

Toray Industries, Inc.

19,460,720
9,783

3,025,069

11,38919,460,720
14,4583,473,869

MS&AD InsuranceGroup Holdings, Inc.
9,154

Tokyo Broadcasting
System Holdings, Inc.
SHIMIZUCORPORATION

5,713,728
8,766
8,554,000
7,196
2,565,300

11,581

Taisei Corporation

East Japan Railway
Company
FUJIFILM Holdings
Corporation

64

Mitsui Fudosan Co., Ltd.

2,096,400
6,831

Yes

Toray Industries, Inc. is a tenant in properties including Nihonbashi Mitsui Tower in Chuo-ku, Tokyo. We believe the investment is beneficial to the leasing business of the Mitsui
Fudosan Group.

Yes

The Company has borrowings from MS&AD Insurance Group
Holdings, Inc.’s consolidated subsidiary Mitsui Sumitomo
Insurance Co., Ltd. We believe that the investment is beneficial to the stable procurement of funds by the Mitsui FudosanGroup.
MS&AD Insurance Group Holdings, Inc.’s consolidated subsidiary Mitsui Sumitomo Insurance Co., Ltd. is a tenant in properties including LaLaport Mitsui Building in Funabashi, Chiba
Prefecture. We believe the investment is beneficial to theleasing business of the Mitsui Fudosan Group.

No
However, MS&AD
Insurance Group
Holdings, Inc.’s
consolidated
subsidiaries Mitsui
Sumitomo Insurance Co., Ltd. andAioi Nissay Dowa
Insurance Co., Ltd.
hold shares.

the akasaka Sacas commercial complex in Minato-ku, Tokyo.
We believe the investment is beneficial to the creation of

Seven & i Holdings Co.,
Ltd.

8,333
2,565,300

8,920

including Mitsui Garden Hotel Roppongi Premier in Minato-ku,
Tokyo. We believe the investment is beneficial to the smoothpromotion of the Mitsui Fudosan Group’s business activities.
Daiwa House Industry Co., Ltd. is a co-operator of properties
including Diver City Tokyo Plaza in Koto-ku, Tokyo. We believe
the investment is beneficial to the creation of business
opportunities for the Mitsui Fudosan Group.
Daiwa House Industry Co., Ltd. is a tenant in Shin-Kawasaki
Mitsui Building in Kawasaki, Kanagawa Prefecture. We believe
the investment is beneficial to the leasing business of the
Mitsui Fudosan Group.

TOBU RAILWAY CO.,LTD.

10,908

5,463

7,185

East Japan Railway Company is a co-operator of the GranTokyo North Tower in Chiyoda-ku, Tokyo. We believe the investment is beneficial to the creation of business opportunities for
the Mitsui Fudosan Group.

1,092,600 FUJIFILM Holdings Corporation is a tenant in Tokyo Midtown

in Minato-ku, Tokyo. We believe the investment is beneficial to5,530 the leasing business of the Mitsui Fudosan Group.

9,821

1,439,050
3,673
3,678,800

Yes

including LaLaport NUMAZU in Numazu, Shizuoka Prefecture.
We believe the investment is beneficial to the smooth promo-

815,300

815,300 Yokado Co., Ltd. is a tenant in properties including LaLaport

2,893

3,676 investment is beneficial to the leasing business of the Mitsui

Kajima Corporation

Sumitomo Mitsui
Construction Co., Ltd.

Yes

3,129,560

2,720

3,831

Yes

Asahi Kasei Corp.

The Company has borrowings from T&D Holdings, Inc.’s
consolidated subsidiary Taiyo Life Insurance Company. We
believe that the investment is beneficial to the stable procurement of funds by the Mitsui Fudosan Group.
The Company has borrowings from T&D Holdings, Inc.’s
consolidated subsidiary Daido Life Insurance Company. We
believe that the investment is beneficial to the stable procurement of funds by the Mitsui Fudosan Group.

784,600 Tobu Annex Building, in which WORK STYLING Ikebukuro is a

2,644

2,484 beneficial to the smooth promotion of the Mitsui Fudosan

tenant, in Toshima-ku, Tokyo. We believe the investment is

The Company has borrowings from The Chiba Bank, Ltd. We

5,611,250 believe that the investment is beneficial to the stable procure-

3,559

ment of funds by the Mitsui Fudosan Group.
The Chiba Bank, Ltd. is a co-operator of Muromachi Chibagin
Mitsui Building in Chuo-ku, Tokyo. We believe the investment
is beneficial to the creation of business opportunities for the
Mitsui Fudosan Group.

Yes

2,465,770 Kajima Corporation is the supplier of new construction including Otemachi One in Chiyoda-ku, Tokyo. We believe theinvestment is beneficial to the smooth promotion of theYes

4,046 Mitsui Fudosan Group’s business activities.

Sumitomo Mitsui Construction Co., Ltd. is the supplier of new

5,397,965 construction including the sequence SUIDOBASHI Project

2,604

4,056 ment is beneficial to the smooth promotion of the Mitsui(tentative name) in Chiyoda-ku, Tokyo. We believe the invest-

Yes

Fudosan Group’s business activities.

816,996

816,996

2,583

3,393

2,473

Yes

Group’s business activities.

5,397,965

3,247,084

No
However, T&D
Holdings, Inc.’s
consolidated
subsidiaries Taiyo
Life Insurance
Company andDaido Life Insurance Company
hold shares.

TOBU RAILWAY CO., LTD. is the land and building owner of

784,600

Sumitomo Mitsui TrustHoldings, Inc.
Yes

Yes

Fudosan Group.

3,129,560

2,617

Yes

Seven & i Holdings Co., Ltd.’s consolidated subsidiary Ito-

KOSHIEN in Nishinomiya, Hyogo Prefecture. We believe the2,465,770

Yes

3,678,800 Obayashi Corporation is the supplier of new construction

The Chiba Bank, Ltd.

Yes

Yes

5,099

Mitsui Building in Kanazawa, Ishikawa Prefecture. We believe
the investment is beneficial to the leasing business of the
Mitsui Fudosan Group.

4,092 tion of the Mitsui Fudosan Group’s business activities.

2,644

No
However, Sumitomo Mitsui Financial Group, Inc.’s
consolidated
subsidiary Sumitomo Mitsui Banking Corporation
holds shares.

1,439,050 Toshiba Corporation is a tenant in properties including Nakaya

3,442

5,611,250

2,096,400 Taisei Corporation is the supplier of new construction includ-ing Toyosu Bayside Cross Tower in Koto-ku, Tokyo. We believe
the investment is beneficial to the smooth promotion of the
Mitsui Fudosan Group’s business activities.

5,063

T&D Holdings, Inc.

8,554,000 SHIMIZU CORPORATION is the supplier of new construction

673,100

5,427

Toshiba Corporation

Obayashi Corporation

11,871 business opportunities for the Mitsui Fudosan Group.

673,100

1,092,600

Mitsui & Co., Ltd. is a co-operator of Otemachi One in Chiyoda-ku, Tokyo. We believe the investment is beneficial to thecreation of business opportunities for the Mitsui FudosanGroup.
Mitsui & Co., Ltd. is a tenant in properties including Sapporo
Mitsui JP Building in Sapporo, Hokkaido. We believe theinvestment is beneficial to the leasing business of the Mitsui
Fudosan Group.

No

2,492,257

Sumitomo Mitsui
Financial Group, Inc.

5,713,728 Tokyo Broadcasting System Holdings, Inc. is a co-operator of

Daiwa House Industry
Co., Ltd.
6,833

Mitsui Garden Hotel Prana Tokyo Bay in Urayasu, Chiba Prefecture, a property operated and managed by the Mitsui
Fudosan Group, is a partner hotel of Tokyo Disney Resort. We
believe the investment is beneficial to the smooth promotionof the Mitsui Fudosan Group’s business activities.
The Company is an official sponsor of Tokyo Disneyland andTokyo DisneySea, which are operated by Tokyo Disney Resort.
We believe that the investment is beneficial to the creation ofbusiness opportunities for the Mitsui Fudosan Group.

Holdings by thecompany of theCompany’s shares

1,744,657

The Company has borrowings from Sumitomo Mitsui Financial Group, Inc.’s consolidated subsidiary Sumitomo Mitsui
Banking Corporation. We believe that the investment isbeneficial to the stable procurement of funds by the Mitsui
Fudosan Group.
Sumitomo Mitsui Financial Group, Inc.’s consolidated subsidiary Sumitomo Mitsui Banking Corporation is a tenant inproperties including Sumitomo Mitsui Banking Corporation
Building in Chiyoda-ku, Tokyo. We believe the investment isbeneficial to the leasing business of the Mitsui FudosanGroup.

Holdings by thecompany of theCompany’s shares

The Company has borrowings from Sumitomo Mitsui TrustHoldings, Inc.’s consolidated subsidiary Sumitomo Mitsui Trust
Bank, Limited. We believe that the investment is beneficial to
the stable procurement of funds by the Mitsui FudosanGroup.
Sumitomo Mitsui Trust Holdings, Inc.’s consolidated subsidiary
Sumitomo Mitsui Trust Bank, Limited is a tenant in properties
including Mitsui Main Building in Chuo-ku, Tokyo. We believe
the investment is beneficial to the leasing business of the
Mitsui Fudosan Group.

3,247,084 Asahi Kasei Corp. is a tenant in Hibiya Mitsui Tower in Chiyoda-ku, Tokyo. We believe the investment is beneficial to the

3,919 leasing business of the Mitsui Fudosan Group.

No
However, Sumitomo Mitsui TrustHoldings, Inc.’s
consolidated
subsidiary Sumitomo Mitsui Trust
Bank, Limited
holds shares.
Yes

Mitsui Fudosan Co., Ltd.

65

Appendix

Current fiscal year
Stock Name

Mitsui Chemicals, Inc.

Keisei Electric Railway
Co.,Ltd.

Previous fiscal year

1,148,080
2,470
748,500
2,359
2,902,600

Number of
Shares Held

2,340

BANDAI NAMCO
Holdings Inc.

1,570,800
2,115

3,166

2,918
–

–

1,570,800 Credit Saison Co., Ltd. issues the Mitsui Shopping Park card.

We believe the investment is beneficial to the smooth promo-

2,419 tion of our Group’s business activities.

LaLaport EBINA in Ebina, Kanagawa Prefecture. We believe

1,088,000
2,060

1,349

ties including Tokyo Midtown in Minato-ku, Tokyo. We believe
the investment is beneficial to the smooth promotion of the
Mitsui Fudosan Group’s business activities.

500,648908

866

4,229,190

1,025

757,200
844
513,200

1,239

Mitsui Fudosan Co., Ltd.

805
560,541708
180,000
661

384,400 Taiheiyo Cement Corporation is a tenant in properties including Midosuji Mitsui Building in Osaka. We believe the investment is beneficial to the leasing business of the Mitsui

621

Yes

No

Yes

ON Building in Koto-ku, Tokyo. We believe the investment isbeneficial to the leasing business of the Mitsui FudosanGroup.

Yes

973

properties including Hamacho Center Building in Chuo-ku,
Tokyo. We believe the investment is beneficial to the leasing
business of the Mitsui Fudosan Group.

Yes

Nippon SteelCorporation

ONWARD HOLDINGS
CO., Ltd.

OHBA & CO., LTD.

Heiwa Real Estate Co.,Ltd.

Seiyoken KK

560,541 The Japan Steel Works, LTD. is a tenant in properties includ1,111

1,495

Yes

The Company has borrowings from Mebuki Financial Group,No
However, Mebuki
Financial Group,
Inc.’s consolidated
subsidiary Joyo
Bank, Ltd. holds
shares.

4,229,190 Inc.’s consolidated subsidiary Joyo Bank, Ltd. We believe that

1,244

the investment is beneficial to the stable procurement offunds by the Mitsui Fudosan Group.
Mebuki Financial Group, Inc.’s consolidated subsidiary Joyo
Bank, Ltd. is a tenant in Yaesu Mitsui Building in Chuo-ku,
Tokyo. We believe the investment is beneficial to the leasing
business of the Mitsui Fudosan Group.

490,400
492

Tokyo Plaza in Koto-ku, Tokyo. We believe the investment isbeneficial to the creation of business opportunities for theYes

1,178 Mitsui Fudosan Group.
513,200

1,398

IHI Corporation is a co-operator of Toyosu Bayside Cross in
Koto-ku, Tokyo. We believe the investment is beneficial to thecreation of business opportunities for the Mitsui FudosanGroup.
IHI Corporation is a tenant in properties including Nagoya
Mitsui Building in Nagoya, Aichi Prefecture. We believe theinvestment is beneficial to the leasing business of the Mitsui
Fudosan Group.

Nakamuraya Building in Shinjuku-ku, Tokyo. We believe theinvestment is beneficial to the creation of business opportuni-

Yes269,261 Nihonbashi Mitsui Tower in Chuo-ku, Tokyo. We believe the871(Nippon Steel Corporation’s consolidated subsidiary Nippon

967

LaLaport Koshien in Nishinomiya, Hyogo Prefecture. We

365
121,400
334
417,500
327

325
150,087277

Concordia Financial
Group, Ltd.

175,000
208

No

ONWARD HOLDINGS CO., Ltd.’s consolidated subsidiaryYes

the Mitsui Fudosan Group.

727,050 OHBA & CO., LTD. is a tenant in properties including Chiba

Chuo Twin Building 1 in Chiba, Chiba Prefecture. We believe
the investment is beneficial to the leasing business of theYes

444 Mitsui Fudosan Group.

121,400 Heiwa Real Estate Co., Ltd. is a leaseholder of land in

Chuo-ku, Tokyo. We believe the investment is beneficial to thesmooth promotion of the Mitsui Fudosan Group’s businessYes

259 activities.

417,500 Seiyoken KK is a partial land owner of Mitsui Garden Hotel

Roppongi Premier in Minato-ku, Tokyo. We believe the investment is beneficial to the creation of business opportunities forNo

416 the Mitsui Fudosan Group.

Mitsui E&S Holdings Co., Ltd. is a tenant in properties including Hamarikyu Mitsui Building in Chuo-ku, Tokyo. We believe

520,957 the investment is beneficial to the leasing business of the

Mitsui E&S Holdings
Co., Ltd.

Sanki Engineering Co.,Ltd.

construction at Mitsui Fudosan Industrial Park Haneda in
Ota-ku, Tokyo. We believe the investment is beneficial to thesmooth promotion of the Mitsui Fudosan Group’s businessactivities.

500 believe the investment is beneficial to the leasing business of

727,050Yes

490,400 Steel & Sumikin Engineering Co., Ltd. is the supplier of new

391

520,957

Mitsui O.S.K. Lines, Ltd.

investment is beneficial to the leasing business of the Mitsui
Fudosan Group.
Denka Company Limited is the land owner of Mitsui Fudosan
Tomakomai Solar Power Plant in Tomakomai, Hokkaido. We
believe the investment is beneficial to the creation of business opportunities for the Mitsui Fudosan Group.

841,000 Onward Kashiyama Co. Ltd. is a tenant in properties including

270

Yes

Yes

779 ties for the Mitsui Fudosan Group.

841,000

848,245757,200 FUJI MEDIA HOLDINGS, INC. is a co-operator of Diver City

ing Gate City Osaki in Shinagawa-ku, Tokyo. We believe theinvestment is beneficial to the leasing business of the Mitsui
Fudosan Group.

180,000 Nakamuraya Co., Ltd. is a co-operator of the Shinjuku

The Company has borrowings from The Gunma Bank, Ltd. We

3,238,004 believe that the investment is beneficial to the stable procurement of funds by the Mitsui Fudosan Group.
The Gunma Bank, Ltd. is a tenant in Midosuji Mitsui Buildingin Osaka. We believe the investment is beneficial to theleasing business of the Mitsui Fudosan Group.

Yes

1,441 Fudosan Group.

Denka Company
LimitedYes

Holdings by thecompany of theCompany’s shares

Denka Company Limited is a tenant in properties including

269,261

500,648 SHIN NIPPON AIR TECHNOLOGIES CO., LTD. is a tenant in

IHI Corporation
819

384,400

Number of
Shares HeldYes425,300 Nihon Unisys, Ltd. is a tenant in properties including Toyosu

Mebuki Financial Group,
Inc.
851

The Japan Steel Works,
LTD.

Previous fiscal year

Purpose of shareholding, quantitative effects of shareholding, andreasons for increase in number of shares
See Note 1
Book Value of Shares Book Value of Shares(Millions of Yen)
(Millions of Yen)
Number of
Shares Held

IBIDEN’s consolidated subsidiary IBIDEN GREENTEC CO.,The Gunma Bank, Ltd.

66

Seibu Holdings Inc.’s consolidated subsidiary Seibu Construction Co., Ltd. is the supplier of new construction including
Park Court Minami-Azabu in Minato-ku, Tokyo. We believe theinvestment is beneficial to the smooth promotion of the
Mitsui Fudosan Group’s business activities.

620,778 LTD. is the supplier of planting management work at proper-

1,218

Taiheiyo Cement
Corporation

Nakamuraya Co., Ltd.

Mitsui Fudosan Group.

620,778

425,300

Yes

Stock Name

Bandai Namco Holdings Inc.’s consolidated subsidiary BANDAI

1,407 the investment is beneficial to the leasing business of the2,832,904

FUJI MEDIAHOLDINGS, INC.

MAEDA CORPORATION is the supplier of new construction
at Halekulani Okinawa in Onna Village, Kunigami District,
Okinawa Prefecture. We believe the investment is beneficial
to the smooth promotion of our Group’s business activities.
Furthermore, MAEDA CORPORATION is an important business partner so we acquired shares after judging that it iseffective management strategy from a medium- to long-term
perspective.

1,502

IBIDENSHIN NIPPON AIRTECHNOLOGIES CO.,LTD.

Mitsui Garden Hotel Shiodome Italia-gai in Minato-ku, Tokyo.
We believe the investment is beneficial to the creation ofbusiness opportunities for the Mitsui Fudosan Group.

282,300 NAMCO Amusement Inc. is a tenant in properties including

1,425

Yes

748,500 Keisei Electric Railway Co., Ltd. is the building owner of

Seibu Holdings Inc.

Nihon Unisys, Ltd.

Shiodome City Center in Minato-ku, Tokyo. We believe theinvestment is beneficial to the leasing business of the Mitsui
Fudosan Group.

282,300

1,088,000

Holdings by thecompany of theCompany’s shares

1,148,080 Mitsui Chemicals, Inc. is a tenant in properties including

MAEDA
CORPORATION

Credit Saison Co., Ltd.

Current fiscal year

Purpose of shareholding, quantitative effects of shareholding, andreasons for increase in number of shares
See Note 1
Book Value of Shares Book Value of Shares(Millions of Yen)
(Millions of Yen)
Number of
Shares Held608

Mitsui Fudosan Group.
Mitsui E&S Holdings Co., Ltd.’s consolidated subsidiary Mitsui
E&S Shipbuilding Co., Ltd. is a co-operator of the Mitsui E&S /Mitsui Fudosan Solar Power Plant in Oita, Oita Prefecture. We
believe the investment is beneficial to the creation of business opportunities for the Mitsui Fudosan Group.

Yes

150,087 Mitsui O.S.K. Lines, Ltd. is a tenant in Nagoya Mitsui Main

Building in Nagoya, Aichi Prefecture. We believe the investment is beneficial to the leasing business of the Mitsui

Yes

368 Fudosan Group.

No
However, Concordia Financial Group,Group, Ltd.’s consolidated subsidiary The Bank of Yokohama,Ltd.’s consolidated
Ltd. We believe that the investment is beneficial to the stablesubsidiary The
procurement of funds by the Mitsui Fudosan Group.
Bank of Yokohama,Ltd. holds shares.

848,245 The Company has borrowings from Concordia Financial
369

175,000 Sanki Engineering Co., Ltd. is a tenant in properties including

Shinanobashi Mitsui Building in Osaka. We believe the investment is beneficial to the leasing business of the Mitsui

Yes

213 Fudosan Group.

Mitsui Fudosan Co., Ltd.

67

Appendix

Current fiscal year
Stock Name

The Hachijuni Bank, Ltd.

Fujikura Ltd.

Number of
Shares Held

577,500
203
518,650154
304,000

577,500 The Company has borrowings from The Hachijuni Bank, Ltd.
We believe that the investment is beneficial to the stable

268 procurement of funds by the Mitsui Fudosan Group.

133
37,200114
170,011229
304,000
172

Oji Holdings
Corporation
NIPPON COKE &ENGINEERING CO.,LTD.
Mitsui-Soko Holdings
Co., Ltd.

200,000

94
170,011188

OSAKI ELECTRIC CO.,LTD.
JAPAN PULP AND
PAPER COMPANY
LIMITED
NANTO BANK,LTD.

MARUI GROUP CO.,LTD.

ANA HOLDINGS INC.

Air Tower in Chiyoda-ku, Tokyo. We believe the investment isbeneficial to the leasing business of the Mitsui FudosanGroup.

Fukuoka, Fukuoka Prefecture. We believe the investment is

1,545,820

1,545,820 NIPPON COKE & ENGINEERING CO., LTD. is a tenant in
156

properties including Toyosu Center Building in Koto-ku, Tokyo.
We believe the investment is beneficial to the leasing business of the Mitsui Fudosan Group.

57

21
5,876
19

The Mitsui Fudosan Group performs contracted leasing
operation and management work for the leased residences
held by Mitsui Sugar Co., Ltd. We believe that the investment
is beneficial to the creation of business opportunities for the
Mitsui Fudosan Group.

32,750 The Company has borrowings fromThe Yamanashi Chuo Bank,
Ltd. We believe that the investment is beneficial to the stable

46 procurement of funds by the Mitsui Fudosan Group.

Garden Hotel Gotanda in Shinagawa-ku, Tokyo. We believe theinvestment is beneficial to the creation of business opportuni-(Previous fiscal year) Tokyo Kaikan Co., Ltd. is a tenant in–

24,582 Fukoku Seimei Building, where the Company conducts office–

97 investment is beneficial to the smooth promotion of the–

100,000 purchaser of a fee-based nursing home for the aged inmanagement work, in Chiyoda-ku, Tokyo. We believe theYes

Mitsui Fudosan Group’s business activities.

(Previous fiscal year) Taiheiyo Kouhatsu Incorporated is theKita-ku, Tokyo. We believe the investment is beneficial to theYes

76 smooth promotion of the Mitsui Fudosan Group’s business–activities.

Deemed Shareholdings

Yes

Oriental Land Co., Ltd.
No

Yes

No

Current fiscal year

Previous fiscal year

Number of Shares
Held
See Note 1

Number of Shares
Held
See Note 1

Purpose of shareholding, quantitative effects of shareholding, andreasons for increase in number of shares
See Note 1
Book Value of Shares Book Value of Shares(millions of yen)(millions of yen)
See Note 2
See Note 2

1,736,400

1,736,400 We have the authority to direct the exercise of voting rights
21,861 for these shares

24,035

Holdings by thecompany of theCompany's shares

No

Notes: 1. Shares for which we have the authority to exercise voting rights are noted.
2. The book value of deemed shareholdings is calculated by multiplying the market value of the shareholdings on the last day of the fiscal year by
the number of shares subject to the exercise of voting rights.
3. Details of the rights held by the Company are noted in the purpose of shareholding.
4. When selecting the stocks with highest book value on financial statements, special investment shares and deemed shareholdings are not combined with shares held.

25

Building in Chuo-ku, Tokyo. We believe the investment isbeneficial to the creation of business opportunities for the
Mitsui Fudosan Group.

11 procurement of funds by the Mitsui Fudosan Group.

–

687,300 subsidiary Marui Co., Ltd. is a tenant in properties including

We believe that the investment is beneficial to the stable(C) Shares held for the purpose of investment income
Current fiscal year

5,876 Nakamuraya Co., Ltd. is a co-operator of OVOL Nihonbashi

11

Yes

Yes

Type

Previous fiscal year

Book Value of Shares(millions of yen)

Number of stocks

Book Value of Shares(millions of yen)

Number of stocks

Unlisted shares––

Other holdings

–

–

–

–

(Previous fiscal year) MARUI GROUP CO., LTD.’s consolidated
Mitsui Outlet Park Iruma in Iruma, Saitama Prefecture. We–

No

Notes: 1. M itsui Fudosan reviews the propriety of its shareholdings by confirming the purpose of each individual stock based on the quantitative feasabilityof the holding and our relationship with the company in question. We are unable to disclose details regarding these relationships for reasons ofconfidentiality.Additionally, under our policy of reducing shareholdings, stocks that are deemed to be beneficial but the benefits of which are
relatively small compared to other holdings will be considered for sale.
2. The symbol “–” indicates that the Company does not hold the shares in question.

Stock Name

30 ties for the Mitsui Fudosan Group.

5,512 The Company has borrowings fromThe NANTO BANK, LTD.

–

Prefecture. We believe the investment is beneficial to thecreation of business opportunities for the Mitsui FudosanGroup.
MESCO, Inc.’s parent company MITSUI MINING & SMELTING
CO., LTD. is a tenant in Yodoyabashi Mitsui Building in Osaka.
We believe the investment is beneficial to the leasing business of the Mitsui Fudosan Group.

43,172 OSAKI ELECTRIC CO., LTD. is the land owner of Mitsui

5,512

–

114

Tokyo Kaikan Co., Ltd.

No

Mitsui Fudosan Group.

38

43,172–114 the investment is beneficial to the leasing business of the
20,16023

100,000 Fudosan Oomuta Solar Power Plant in Oomuta, Fukuoka

MESCO, Inc.

Taiheiyo Kouhatsu
Incorporated

Holdings by thecompany of theCompany’s shares(Previous fiscal year) MESCO, Inc.’s parent company MITSUIMINING & SMELTING CO., LTD. is the land owner of Mitsui–

Mitsui-Soko Holdings Co., Ltd.’s consolidated subsidiary

62,929 Mitsui-Soko Logistics Co., Ltd. is a tenant in Mitsui Fudousan

20,16032,750Yes

Group.

Logistics Park Ibaraki in Ibaraki, Osaka Prefecture. We believe

88

No

Number of
Shares HeldOji Holdings Corporation’s consolidated subsidiary Oji Paper

135 beneficial to the leasing business of the Mitsui Fudosan

62,929Yes

No
However, Isetan
Isetan Mitsukoshi Holdings Ltd.’s consolidated subsidiary
Isetan Mitsukoshi Ltd. is a tenant in properties including Tokyo Mitsukoshi Holdings Ltd.’s consoliMidtown Hibiya in Chiyoda-ku, Tokyo. We believe the investdated subsidiary
ment is beneficial to the leasing business of the Mitsui
Isetan Mitsukoshi
Fudosan Group.
Ltd. holds shares.

100

94

Purpose of shareholding, quantitative effects of shareholding, andreasons for increase in number of shares
See Note 1
Book Value of Shares Book Value of Shares(Millions of Yen)
(Millions of Yen)

Yes

No
However, MitsubiThe Company has borrowings from Mitsubishi UFJ Financial
shi UFJ Financial
Group, Inc.’s consolidated subsidiary MUFG Bank, Ltd. We
Group, Inc.’s conbelieve that the investment is beneficial to the stable procure- solidated subsidiment of funds by the Mitsui Fudosan Group.
ary MUFG Bank,
Ltd. holds shares.

200,000 Co., Ltd. is a tenant in Hakata Mitsui Building No. 2 in

Mitsui Sugar Co., Ltd.

The Yamanashi Chuo
Bank, Ltd.

is a tenant in Kita-Ichijo Mitsui Building in Sapporo, Hokkaido.
We believe the investment is beneficial to the leasing business of the Mitsui Fudosan Group.

Stock Name

Previous fiscal year

Number of
Shares Held

37,200 KDDI Corporation is a tenant in properties including Garden

Isetan Mitsukoshi
Holdings Ltd.
109

Holdings by thecompany of theCompany’s shares

518,650 Fujikura Ltd.’s consolidated subsidiary Fujikura Dia Cable LTD.

Mitsubishi UFJ Financial
Group, Inc.

KDDI Corporation

Current fiscal year

Previous fiscal year

Purpose of shareholding, quantitative effects of shareholding, andreasons for increase in number of shares
See Note 1
Book Value of Shares Book Value of Shares(Millions of Yen)
(Millions of Yen)
Number of
Shares HeldNo

1,437 believe the investment is beneficial to the leasing business of

Current fiscal year
Total value of dividends received(millions of yen)

Total gain or loss onsale (millions of yen)

Unlisted shares

–

–

–

Other holdings

–

–

–

Type

the Mitsui Fudosan Group.

100,000 (Previous fiscal year) ANA HOLDINGS INC. is a tenant in

Shiodome City Center in Minato-ku, Tokyo. We believe theinvestment is beneficial to the leasing business of the Mitsui

403 Fudosan Group.

No

Total valuation gain or loss (millions of yen)

Note: The symbol “–” indicates that the Company does not hold the shares in question.

68

Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd.

69