■August 4, 2017

MITSUBISHI ESTATE CO., LTD.

FACT BOOK 2018/3-1st Q

Inquiries: MITSUBISHI ESTATE CO., LTD.
Investor Relations Office
TEL: +81-3-3287-5200
FAX: +81-3-3212-3757
http://www.mec.co.jp/e/investor/index.html

■Contents
Page/sI. Performance Comparisons (Consolidated)

II. Highlights

III. Summary of Consolidated Financial Statements

1. Income Statement Results for 2018/3-1Q and 2017/3-1Q

3

2. Income Statement Estimates for 2018/3 and Results for 2017/3

4

3. Balance Sheet Results at Periods Ended 2017/6 and 2017/3

5

1. Major Performance Items (Consolidated)

6

2. Segment Information (Consolidated)

7,8

3. Building Business Revenue from Operations Breakdown (Consolidated)

9

4. Building Business Data (Consolidated)

9

5. Building Business Data (Unconsolidated)

9

6. Marunouchi Area Building Data (Unconsolidated)

9

7. Lifestyle Property Business Data (Consolidated)

10

8. Condominium Business Data

10

9. Special Purpose Vehicle Data11

1. Consolidated Balance Sheets

12 , 13

2. Consolidated Income Statements

14

3. Consolidated Cash Flow Statements

15

4. Total Assets, Capital Investment and Depreciation (Consolidated)

16

5. Interest-Bearing Debt (Consolidated)

16

6. Major Consolidated Subsidiaries

17

Disclaimer
This FACT BOOK contains predictions and aims which relate to, without limitation, our future economic performance, our plans andobjectives for future operations and projections of revenue and other financial items.
These predictions are inherently subject to risks and uncertainties, due to unforeseeable events or external factors.
Future events and actual results, financial and otherwise, may differ materially from the events and results expressed here.

2

I. Performance Comparisons (Consolidated)
1. Income Statement Results for 2018/3-1Q and 2017/3-1Q
Millions of yen (rounded down)

Millions of yen (rounded down)

2018/3-1Q
Results

2017/3-1Q
Results

2018/3-1Q
Results

2017/3-1Q
Results

Office Building Business

110,344

111,632(1,287)

Settlement received

-

1,966

(1,966)

Lifestyle Property Business

22,57019,826

2,744

Total

-

1,966

(1,966)

ChangeResidential Business

72,13570,844

1,291

International Business

10,827

20,540(9,712)

Investment Management Business

5,211

5,835

(623)

Architectural Design & Engineering Business

2,924

3,592

(668)

Hotel Business

8,392

8,431

(39)

Real Estate Services Business

5,763

5,187

576

Other

1,096

970

126

Eliminations■Breakdown of Extraordinary income

Millions of yen (rounded down)■Breakdown of Extraordinary loss

2018/3-1Q
Results

2017/3-1Q
Results(5,049)(4,713)(336)

Revenue from Operations

234,217242,147(7,929)

Office Building Business

32,01632,632(616)

Lifestyle Property Business

6,414

5,327

1,087

Residential Business(1,022)

1,269(2,291)

International Business

2,346

11,475(9,128)Investment Management Business

940

1,574

(634)

Architectural Design & Engineering Business

(354)

(201)

(153)

Hotel Business

560

610

(50)

Real Estate Services Business

138

(237)

375

Office Building Business

0

Other

21

76

(55)

Lifestyle Property Business0

Residential BusinessEliminations or Corporate

ChangeChangeLoss on step acquisitions

-

1,794

(1,794)

Total

-

1,794

(1,794)＜Reference＞■Capital Gains included in Operating Income

Millions of yen (rounded off)

2018/3-1Q
Results

Capital Gains(5,216)(5,186)(29)

Operating Income

35,84347,340(11,496)

International Business

Non-operating revenue

3,927

5,378

(1,450)Investment Management Business0

Non-operating expense

8,125

7,499

625

Eliminations or Corporate

031,64545,219(13,573)

Total

1,966

(1,966)*Capital Gains: Disposition of assets and other one-time-only profit with the exclusion of residential condominium sales.

Income Before Taxes and Special Items

Extraordinary income-

Extraordinary loss
Income Before Income Taxes and Minority Interests
Corporate tax, etc.

ProfitProfit attributable to non-controlling interests
Profit Attributable to Owners of Parent

1,794(1,794)

31,645-45,391(13,745)

9,645

14,897(5,251)

22,00030,493(8,493)

4,066

3,093

973

17,93327,400(9,466)＜Reference＞■Overseas Operating Income
Overseas Operating Income

1,000
0

1,000

Millions of yen (rounded off)

2018/3-1Q
Results
2,000*Overseas Operating Income: Sum of operating income from International Business Group and other overseas operations.

32. Income Statement Estimates for 2018/3 and Results for 2017/3* There is no change in the 2018/3 earnings estimates announced on May 10, 2017.
Millions of yen (rounded down)

2018/3
Estimates

2017/3Results

Millions of yen (rounded down)

Change■Breakdown of Extraordinary income

2018/3
Estimates

2017/3Results

ChangeOffice Building Business

497,000

484,238

12,762Gain on sales of fixed assets

6,000

-

Lifestyle Property Business

105,000

88,955

16,045Gain on sales of investment securities

2,000

1,013

987

Residential Business

423,000

407,850

15,150Gain on negative goodwill-

13,505(13,505)

International Business

95,00066,55628,444

Settlement received(1,966)

Investment Management Business

20,00021,323(1,323)

Architectural Design & Engineering Business

19,00019,309(309)

Other Extraordinary income
Total

Hotel Business

34,00033,512

488

Real Estate Services Business

25,00024,243

757

Other

4,000

4,237

(237)

(22,000)(24,820)

2,820

Revenue from Operations

1,200,000

1,125,405

74,595

Office Building Business

140,000

133,570

6,430

Loss related to retirement of fixed assets

Lifestyle Property Business

26,00025,807

193

Impairment loss

Eliminations

Residential Business

20,00019,253747

International Business

23,00026,313(3,313)(1,520)Investment Management Business

3,000

4,520

Architectural Design & Engineering Business

500

445

55

Hotel Business

1,500

1,932

(432)

Real Estate Services Business

1,500

2,157

(657)

0

289

(289)

Other
Eliminations or Corporate
Operating Income
Non-operating revenue
Non-operating expense
Income Before Taxes and Special Items(20,500)(21,793)

1,293

195,000

192,495

2,505

8,000

9,380

(1,380)32,00032,024(24)

171,000

169,851

1,149

Extraordinary income

9,000

16,484(7,484)Extraordinary loss

5,000

23,455(18,455)

175,000

162,881

12,119

Income Before Income Taxes and Minority Interests
Corporate tax, etc.

ProfitProfit attributable to non-controlling interests
Profit Attributable to Owners of Parent

6,000

-

1,966

1,000

-

1,000

9,000

16,484(7,484)

Millions of yen (rounded down)■Breakdown of Extraordinary loss

2018/3
Estimates

4,762

238

-

12,260(12,260)-

6,431(6,431)

5,000

23,455(18,455)＜Reference＞■Capital Gains included in Operating Income
Capital Gains
Office Building BusinessChange

5,000

Loss on step acquisitions
Total

2017/3Results

Millions of yen (rounded off)

2018/3
Estimates

2017/3Results

Change28,00042,000(14,000)

13,00018,000(5,000)* Capital Gains: Disposition of assets and other one-time-only profit with the exclusion of residential condominium sales.

＜Reference＞■Overseas Operating Income

Millions of yen (rounded off)

2018/3
Estimates

53,00046,073

6,927

Overseas Operating Income

116,808

5,192* Overseas Operating Income: Sum of operating income from International Business Group and other overseas operations.

14,00014,126(126)

102,6815,319

427,000Change122,000
108,000

24,0002017/3Results(3,000)3. Balance Sheet Results at Periods Ended 2017/6 and 2017/3
Millions of yen (rounded down)

At Jun 30, 2017 At Mar 31, 2017
AssetsI. Current assets
1. Cash2. Notes and accounts receivable-trade
3. Marketable securities
4. Property for sale
5. Property for sale in progress
6. Property for development
7. Appropriated construction in progress
8. Other inventories
9. Equity investments
10. Deferred tax assets
11. Other current assets
12. Allowance for doubtful accounts
Total current assets
II. Fixed assets
1. Property and equipment(1) Buildings and structures(2) Machinery and equipment(3) Land(4) Land in trust(5) Construction in progress(6) Other property and equipment
Total property and equipment
2. Intangible assets(1) Leaseholds(2) Other intangible assets
Total intangible assets
3. Investments and other assets(1) Investment securities(2) Long-term loans(3) Lease deposits(4) Net defined benefit asset(5) Deferred tax assets(6) Other investments(7) Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

Millions of yen (rounded down)

Change230,357
35,827
11,60363,579352,071
1,056
11,1691,102
284,031
10,02576,740(264)
1,077,300

243,681
43,823
13,51560,195337,928
1,058
8,091
1,021
292,764
10,73069,152(270)
1,081,690(13,323)(7,995)(1,911)
3,383
14,142(1)
3,078
80(8,732)
(705)
7,588
5
(4,390)1,030,623
21,0882,065,280
708,801
88,32013,834
3,927,950

1,032,286
21,722
1,987,344
708,801
92,367
14,2333,856,757(1,662)(634)
77,936(4,047)(398)
71,192

73,24723,883
97,13173,81625,72599,542(569)(1,841)(2,410)259,708
1,357
104,768
18,518
11,64875,091(1,676)
469,417
4,494,498
5,571,799

244,870
1,389
106,1499,487
11,08274,786(1,642)446,125
4,402,424
5,484,115

14,838(32)(1,381)
9,030
565
305
(34)
23,292
92,07487,683

At Jun 30, 2017 At Mar 31, 2017
Liabilities
I. Current liabilities
1. Notes and accounts payable-trade
2. Short-term borrowings
3. Current portion of long-term debt
4. Commercial paper
5. Bonds due within one year
6. Accrued income taxes
7. Deferred tax liability
8. Other current liabilities
Total current liabilities
II. Long-term liabilities
1. Bonds
2. Long-term borrowings
3. Lease deposits received
4. Deferred tax liability
5. Deferred tax liabilities on land revaluation
6. Net defined benefit liability
7. Accrued directors' retirement benefits
8. Provision for environmental measures
9. Negative goodwill
10. Other long-term liabilities
Total long-term liabilities
Total liabilities
Net Assets
I. Shareholders' Equity
1. Capital
2. Capital surplus
3. Retained earnings
4. Less treasury stock, at cost
Total shareholders' equity
II. Other accumulated comprehensive income
1. Unrealized holding gain on securities
2. Deferred gains or losses on hedging instruments
3. Land revaluation reserve
4. Foreign currency translation adjustments
5. Remeasurements of defined benefit plans
Total other accumulated comprehensive income
III. Stock acquisition rights
IV. Non-controlling interests
Total net assets
Total liabilities and net assets

5

56,09986,415
149,281

Change42,62080,711130,199
36,00095,0756,799
1,203
200,396
593,006

85,075
16,471
572
192,708
586,623(13,478)(5,704)(19,082)
36,00010,000(9,672)
631
7,688
6,382

767,712
1,308,619
400,681
221,763
263,548
30,562
658
4,831
92,070118,3123,208,762
3,801,769

777,712
1,292,854
398,014217,565
263,661
22,042834
4,831
90,53561,9783,130,031
3,716,654(10,000)
15,765
2,667
4,198
(112)
8,519
(175)
1,535
56,33378,731
85,114

141,898
161,726
677,182(5,488)975,319

141,659
161,477
674,259(5,489)971,906

239
249
2,922
1
3,412

119,330
117
526,873(23,280)(1,959)621,082522
173,105
1,770,030
5,571,799

109,64473
527,128(13,363)(2,612)620,870529
174,154
1,767,460
5,484,115

9,686
44
(254)
(9,917)653
212(7)(1,048)2,569
87,683

II. Highlights
1. Major Performance Items (Consolidated)

Millions of yen (rounded down)

2015/3

2016/32017/3-1Q

2017/3

2018/3-1Q

2018/3 (Estimates)

Revenue from operations

1,110,259

1,009,408

242,147

1,125,405

234,217

1,200,000

Operating income

156,332

166,199

47,340

192,495

35,843

195,000

Income before taxes and special items

133,113

144,851

45,219169,851

31,645

171,000

Profit attributable to owners of parent

73,33883,426

27,400102,681

17,933108,000

Total assets

4,901,526

5,311,840

5,269,607

5,484,115

5,571,799

5,800,000

Shareholders' equity *1

1,495,838

1,509,680

1,491,933

1,592,777

1,596,402

1,670,000

Interest-bearing debt

1,929,355

2,291,038

2,358,604

2,396,994

2,423,800

2,555,000

Cash flow from operating activities

200,078

135,821(59,339)

168,527

21,987173,000

Cash flow from investing activities(46,568)(231,003)(73,666)(327,292)(48,649)(356,000)

Cash flow from financing activities(189,109)309,237

64,112(4,921)

15,413

124,000

EBITDA *2

239,934

252,034

69,453279,718

58,708282,500

Return on assets (ROA) *3

3.2 %

3.3 %

-%

3.6 %

-%

3.5 %

Interest coverage ratio (ICR) *4

7.7 times

8.5 times- times

8.7 times- times

8.4 times

Return on equity (ROE) *5

5.2 %

5.6 %

-%

6.6 %

-%

6.6 %

Earnings per share (EPS) (Yen)

52.85

60.13

19.75

74.00

12.92

*1 Shareholders' equity = Net assets - Stock acquisition rights - Non-controlling interests*2 EBITDA = Operating income + Interest income + Dividend income + Equity in earnings of unconsolidated subsidiaries and affiliates + Depreciation + Amortization of goodwill*3 ROA = Operating income / Total assets (average） * All figures of ROA in the chart above are calculated using Operating income as a numerator from 2018/3-1Q onward.
*4 ICR = (Operating income + Interest income + Dividend income + Equity in earnings of unconsolidated subsidiaries and affiliates) / Interest expense*5 ROE = Profit attributable to owners of parent / Shareholders' equity (average)

6

77.82

2. Segment Information (Consolidated)(Millions of yen (rounded down); as percentage of total)(1) Revenue from Operations
Office Building BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

2015/3587,660
377,736
77,7948,050
19,46730,827
27,295
3,747(22,321)
1,110,259

2015/3*1
51.9% Office Building Business
Lifestyle Property Business
33.4% Residential Business
6.9% International Business
0.7% Investment Management Business
1.7% Architectural Design & Engineering Business
2.7% Hotel Business
2.4% Real Estate Services Business
0.3% Other
Eliminations or corporate

484,816
105,706
383,887
71,176
14,885
19,46730,827
20,543
3,747(24,799)
1,110,259

2016/3
42.7%
9.3%
33.8%
6.3%
1.3%
1.7%
2.7%
1.8%
0.4%

422,349
86,569345,226
75,95624,994
21,27933,08919,815
3,882(23,754)
1,009,408

2017/3-1Q
40.9%
8.4%
33.4%
7.4%
2.4%
2.1%
3.2%
1.9%
0.3%

111,632
19,826
70,844
20,540
5,835
3,592
8,431
5,187
970
(4,713)242,147

45.2%
8.0%
28.7%
8.3%
2.4%
1.5%
3.4%
2.1%
0.4%

2017/3484,238
88,955
407,850
66,556
21,323
19,30933,512
24,243
4,237(24,820)
1,125,405

2018/3-1Q
42.1%
7.7%
35.5%
5.8%
1.9%
1.7%
2.9%
2.1%
0.3%

110,344
22,57072,135
10,827
5,211
2,924
8,392
5,763
1,096
(5,049)234,2172018/3 (Estimates)

46.1%
9.4%
30.1%
4.5%
2.2%
1.2%
3.5%
2.4%
0.6%

497,000
105,000
423,000
95,00020,00019,00034,00025,0004,000(22,000)
1,200,000

40.7%
8.6%
34.6%
7.8%
1.6%
1.6%
2.8%
2.0%
0.3%

Millions of yen (rounded down)(2) Operating income

2015/3

Office Building Business

128,982

Residential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

11,605
26,068
4,064
663
754
1,111
16
(16,934)
156,332(3) Rate of return

2015/3*1
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

2015/3

Office Building Business21.9 %

Residential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

3.1 %33.5 %
50.5 %
3.4 %
2.4 %
4.1 %
0.4 %

*1
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

14.1 %

102,820
26,162
11,53225,901
4,282
663
754
1,105
16
(16,906)
156,332

2016/3
108,940
25,842
18,035
19,421
5,082
1,754
1,490
602
(37)
(14,933)
166,199

2017/3-1Q
32,632
5,327
1,269
11,475
1,574
(201)
610
(237)
76
(5,186)47,3402017/3
133,570
25,807
19,253
26,313
4,520
445
1,932
2,157
289
(21,793)
192,495

2018/3-1Q
32,016
6,414(1,022)
2,346
940
(354)
560
138
21
(5,216)35,843

2015/3

2016/32017/3-1Q

2017/3

2018/3-1Q

21.2 %
24.7 %
3.0 %
36.4 %
28.8 %
3.4 %
2.4 %
5.4 %
0.4 %

25.8 %
29.9 %
5.2 %
25.6 %
20.3 %
8.2 %
4.5 %
3.0 %
(1.0) %

29.2 %
26.9 %
1.8 %
55.9 %
27.0 %(5.6) %
7.2 %
(4.6) %
7.8 %

27.6 %
29.0 %
4.7 %
39.5 %
21.2 %
2.3 %
5.8 %
8.9 %
6.8 %

29.0 %
28.4 %(1.4) %
21.7 %
18.0 %(12.1) %
6.7 %
2.4 %
1.9 %

14.1 %

16.5 %

19.6 %

17.1 %

15.3 %

2018/3 (Estimates)
140,000
26,00020,00023,000
3,000
500
1,500
1,500
0
(20,500)
195,000
2018/3 (Estimates)
28.2 %
24.8 %
4.7 %
24.2 %
15.0 %
2.6 %
4.4 %
6.0 %
0.0 %
16.3 %
Millions of yen (rounded down)(4) Depreciation

2015/3

Office Building Business

59,960Residential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

2,728
7,378
55
103
1,322
333
159
654
72,696

2015/3*1
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

48,665
11,294
2,762
6,404
1,029
103
1,322
300
159
654
72,696

2016/343,752
12,288
3,085
7,033
5,413
126
1,527
284
90
642
74,2452017/3-1Q
11,322
2,991
875
1,564
1,154
26
376
78
16
(561)
18,0192017/347,755
12,704
3,144
5,913
4,216
113
1,478
343
64
240
75,9742018/3-1Q
11,775
3,195
676
1,578
1,012
29
355
79
14
42
18,757

2018/3 (Estimates)
76,500*1 As of April 2015, the following segment changes have occurred.
・Domestic retail & logistics property businesses (not including some multi-use facilities）no longer feature in the Building Business,
now featuring in the newly created Lifestyle Property Business.
・Overseas investment management business has been moved from the International Business to the Investment Management Business.
・Mitsubishi Jisho House Net Co., Ltd has been moved from the Real Estate Services Business to the Residential Business.

7Millions of yen (rounded down)(5) Amortization of goodwill
Office Building BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

2015/3
479
3,312
875
4,667

2015/3*1
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

409
69
3,312
875
4,667

2016/3
409
318
3,030
2,386
6,144

2017/3-1Q
102
17
757
530
1,407

2017/3
409
69
3,030
1,963
0
5,473

2018/3-1Q
102
17
757
10
497
1,385

2018/3 (Estimates)
5,500
Millions of yen (rounded down)(6) Operating income before depreciation *2

2015/3

Office Building Business

189,421

Residential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

17,64534,321
4,119
766
2,076
1,444
175
(16,280)
233,695

2015/3*1
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

151,894
37,525
17,60632,305
6,186
766
2,076
1,405
175
(16,252)
233,695

2016/3
153,101
38,44824,15026,454
12,881
1,880
3,017
886
53
(14,291)
246,5882017/3-1Q
44,056
8,335
2,901
13,039
3,258
(175)
986
(159)
92
(5,747)
66,7662017/3
181,734
38,58025,42732,226
10,699
558
3,410
2,500
353
(21,553)
273,942

2018/3-1Q
43,893
9,626
411
3,934
2,449
(325)
915
217
35
(5,174)55,985

2018/3 (Estimates)
277,000
Millions of yen (rounded down)(7) Capital expenditure

2015/3

Office Building Business

120,704

Residential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

22,10845,947
242
677
3,290
408
382
(2,304)
191,457

2015/3*1
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

87,53633,16822,167
21,261
24,927
677
3,290
349
382
(2,304)
191,457

2016/3
175,904
40,272
29,14435,472
378
116
1,295
433
29
369
283,4162017/3-1Q
56,496
782
9,531
5,403
61
44
49
71
3
(706)
73,1492017/3
162,651
59,05427,26739,724
201
182
734
568
274
3,055
293,7162018/3-1Q
38,3593,124
2,937
10,987
37
201
52
53
5
1,387
57,145

2018/3 (Estimates)
Millions of yen (rounded down)(8) Total assets

2015/3

Office Building Business

3,416,285

Residential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate

597,587595,293
31,03024,98528,03427,505
27,696
153,106
4,901,526*Exchange rate
<2017/3-1Q>¥/$
PL 115.35
BS 112.68¥ /￡ PL 165.05
BS 161.92

2015/3*1
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management BusinessArchitectural Design & Engineering Business
Hotel Business
Real Estate Services Business
Other
Eliminations or corporate<2018/3-1Q>
PL 113.60
BS 112.19
PL 140.74
BS 140.08<2018/3 (Estimates)>
PL 110.00
BS 110.00
PL 130.00
BS 130.00

3,094,967
321,405602,263479,785
146,538
24,98528,03423,972
27,696
151,876
4,901,526

2016/3
3,208,271
372,779
748,400
515,844
141,126
27,47428,417
23,60823,501
222,415
5,311,840

2017/3-1Q
3,250,005
362,696654,946
488,912135,280
24,69327,44523,481
23,979278,166
5,269,607

2017/3
3,445,008
484,292
634,219541,888
106,990
27,35828,84225,702
12,649177,1635,484,115

2018/3-1Q
3,480,221
495,025
624,391
570,660
96,722
26,314
26,82424,51916,422
210,697
5,571,799

2018/3 (Estimates)
5,800,000*1 As of April 2015, the following segment changes have occurred.
・Domestic retail & logistics property businesses (not including some multi-use facilities）no longer feature in the Building Business,
now featuring in the newly created Lifestyle Property Business.
・Overseas investment management business has been moved from the International Business to the Investment Management Business.
・Mitsubishi Jisho House Net Co., Ltd has been moved from the Real Estate Services Business to the Residential Business.
*2 Operating income before depreciation is included in earnings before depreciation and amortization of goodwill.

8

3. Office Building Business Revenue from Operations Breakdown (Consolidated) *1

Millions of yen (rounded down)

2015/3

2015/3*2

2016/3*2

2017/3-1Q*2

2017/3*2

2018/3-1Q*2

Leasing

416,631

347,757

353,958

91,901

376,531

94,542

Property Management

19,721

19,38921,146

5,398

21,926

5,745

23,000Contracted Work

14,50014,50014,5972,351

12,552

3,059

14,000District Heating and Cooling Services

2018/3 (Estimates)*2
382,000

8,724

8,724

8,387

1,909

8,280

1,873

8,000

Other (Sales of assets etc.)

128,083

94,44324,25910,07164,947

5,124

70,000

Total

587,660

484,816

422,349

111,630

484,238

110,343

497,000*1 Including revenue from other segments.
*2 As of April 2015, revenue from operations from the Lifestyle Property Business is not included in calculations.

4. Office Building Business Data (Consolidated)(Thousands of square meters)

2015/3

2016/3

2016/62017/32017/6

4,184

3,470

3,504

3,557

3,581

Owned by MEC

2,629

2,074

2,123

2,182

2,230

Subleases

1,555

1,395

1,381

1,376

1,352

Contracted area

* As of April 2015, the contracted area from the Lifestyle Property Business are not included in calculations.

5. Office Building Business Data (Unconsolidated)(Thousands of square meters ; yen/tsubo.month)

2015/3

2016/3

2016/62017/32017/62018/3 (Estimates)

Owned by MEC

3,326

3,265

3,311

3,414

3,490

3,499

Subleases

2,345

1,909

1,978

1,971

1,924

1,991

Total

5,670

5,174

5,288

5,385

5,414

5,490

(2) Leasable area

3,504

3,192

3,300

3,357

3,391

3,435

(3) Vacancy rate (All purpose in Japan)

2.80 %

2.22 %

2.34 %

2.93 %

3.55 %(1) Total operating floor space(4) Average rent (All purpose in Japan)
23,587
25,23425,321* The average rent is per 3.3 square meters per month.
* As of April 2015, the floor space and rent from the Lifestyle Property Business are not included in calculations.

6. Marunouchi Area Building Data (Unconsolidated)

25,842

25,722(Thousands of square meters; millions of yen(rounded down))

2015/3

2016/3

2016/62017/32017/6

Operating floor space

2,583

2,531

2,592

2,727

2,770

Leasable area

1,571

1,466

1,533

1,603

1,640

Office vacancy rate

1.82 %

1.37 %

1.29 %

2.42 %

Building lease revenue

202,784

202,337

52,468

216,6739

4.19 %
54,6343.0 %26,0007. Lifestyle Property Business Data (Consolidated)
2016/3
2016/6
Contracted area
680
682
* These figures are for the contracted area of retail properties of the Lifestyle Property Business.

(Thousands of square meters)

2017/3680

2017/6682

2017/3-1Q
21,767390
19.0 %
158
738
284,169
174,009
107,0903,070

2017/3
223,266
3,713
19.4 %
326
3,236
412,855
167,887
20,395

8. Condominium Business Data
2015/3
2016/3
239,422
215,7624,603
3,868
17.3 %
18.7 %
141
188
5,119
3,641
442,367
442,068
The fiscal year share (Millions of yen)
The following fiscal year share (Millions of yen)
130,792
140,563
The post following fiscal year share (Millions of yen)
71,08986,389* Gross Margin: Subtract Land Acquisition Cost and Construction Cost from Sales

Condominiums sold (Millions of yen)
Condominiums sold (units)
Gross margin
Inventory (units)
New Supply of condominiums (units)
Condominium contract balance (Millions of yen)10

2018/3-1Q
32,662426
17.4 %
309
955
257,863
205,037
52,79730

2018/3 (Estimates)
267,000
4,200
18.1 %
3,600-

9. Special Purpose Vehicle Data

Millions of yen (rounded down)

2015/3

2016/3

2016/62017/32017/6

206,865
102,311
102,552
102,530
157,971
157,871

172,698
79,00576,70476,704
97,693
97,593

167,169
73,48973,34973,34997,66897,568

168,753
76,66478,28878,28897,56897,468

157,708
63,19962,90362,903
85,21885,11831,097
7,245
2,488
2,488
8,297
8,197

32,208
8,357
2,484
2,484
10,103
10,00337,036
13,184
6,892
6,892
19,276
19,17637,036
13,185
6,893
6,893
19,187
19,087

48
-

-

-

-

-

206,914102,311
102,552
102,530
157,971
157,871

203,795
86,25079,192
79,192
105,990
105,790

199,378
81,84775,83375,833
107,771
107,571

205,789
89,84985,181
85,181
116,845
116,645

194,744
76,384
69,797
69,797
104,406
104,206

Office Building Business
Equity investment by Mitsubishi Estate(Unconsolidated)
Equity investment by other companies(Unconsolidated)
Interest bearing debt borrowed by SPV(Unconsolidated)
Lifestyle Property Business
Equity investment by Mitsubishi Estate(Unconsolidated)
Equity investment by other companies(Unconsolidated)
Interest bearing debt borrowed by SPV(Unconsolidated)
Residential Business
Equity investment by Mitsubishi Estate(Unconsolidated)
Equity investment by other companies(Unconsolidated)
Interest bearing debt borrowed by SPV(Unconsolidated)
Total
Equity investment by Mitsubishi Estate(Unconsolidated)
Equity investment by other companies(Unconsolidated)
Interest bearing debt borrowed by SPV(Unconsolidated)* The numbers include the following S.P.V
1. TMK vehicles under the real estate securitization law - Mitsubishi Estate's share : over 20%
2. YK-TK or GK-TK vehicles under the commercial law - Mitsubishi Estate's share : over 20%* As of April 2015, domestic retail & logistics property businesses (not including some multi-use facilities）no longer feature in the Office Building Business, now featuring in the newly created Lifestyle Property Business.

11III. Summary of Consolidated Financial Statements
1. Consolidated Balance Sheets

Millions of yen (rounded down)

At March 31, 2015
AssetsCurrent assets
Cash
Notes and accounts receivable-tradeMarketable securities
Property for sale
Property for sale in progress
Property for development
Appropriated construction in progress
Other inventories
Equity investments
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property and equipment
Buildings and structures
Machinery and equipment
Land
Land in trust
Construction in progress
Other property and equipment
Total property and equipment
Intangible assets
Leaseholds
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Long-term loans
Lease deposits
Net defined benefit asset
Deferred tax assets
Other investments
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets

Total assets

At March 31, 2016

At June 30, 2016

At March 31, 2017

At June 30, 2017

197,169
35,873
2,179
52,102
314,305
8,646
6,594
1,002
251,249
17,01065,244(571)
950,806

412,983
35,261
14
54,827366,354
8,905
7,942
1,014
276,842
14,552
55,764(528)
1,233,935

337,435
30,453
3,392
39,439399,343
8,817
10,524
953
274,344
15,031
61,107(478)
1,180,366

243,681
43,823
13,51560,195337,928
1,058
8,091
1,021
292,764
10,73069,152(270)
1,081,690

230,357
35,827
11,60363,579352,071
1,056
11,1691,102
284,031
10,02576,740(264)
1,077,300

846,652
21,161
1,839,707
532,774
90,69415,022
3,346,013

886,494
21,9391,955,451
549,811
122,261
15,1053,551,062

927,178
21,483
1,929,738
572,634
117,739
14,8883,583,662

1,032,286
21,722
1,987,344
708,801
92,367
14,2333,856,757

1,030,623
21,0882,065,280
708,801
88,32013,834
3,927,950

87,021
33,210120,232

75,49432,289107,784

75,13829,657
104,796

73,81625,72599,542

73,24723,883
97,131

280,809
1,448
112,397
23,194
10,504
57,840(1,722)484,473
3,950,719
4,901,526

216,334
1,406
115,3829,810
16,17061,578(1,623)419,058
4,077,904
5,311,840

203,380
1,381
118,038
9,781
10,75059,001(1,550)400,783
4,089,241
5,269,607

244,870
1,389
106,1499,487
11,08274,786(1,642)446,125
4,402,424
5,484,115

259,708
1,357
104,768
18,518
11,64875,091(1,676)
469,417
4,494,498
5,571,799

12

Millions of yen (rounded down)

At March 31, 2015
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term debt
Commercial paper
Bonds due within one year
Accrued income taxes
Deferred tax liability
Allowance for loss on business transfer
Other current liabilities
Total current liabilities
Long-term liabilities
Bonds
Long-term borrowings
Lease deposits received
Deferred tax liability
Deferred tax liabilities on land revaluation
Net defined benefit liability
Accrued directors' retirement benefits
Provision for environmental measures
Negative goodwill
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity
CapitalCapital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders' equity
Other accumulated comprehensive income
Unrealized holding gain on securities
Deferred gains or losses on hedging instruments
Land revaluation reserve
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other accumulated comprehensive income
Stock acquisition rights
Non-controlling interests
Total net assets

Total liabilities and net assets

At March 31, 2016

At June 30, 2016

At March 31, 2017

At June 30, 2017

95,632
77,881
86,61728,00040,2259,934
205
181,210
519,707

58,331
103,125
163,651
78,02322,903
10,570234,271
670,877

46,27595,545
180,503
67,9997,183
145
188,511586,163

56,09986,415
149,281
85,075
16,471
572
192,708
586,623

42,62080,711130,199
36,00095,0756,799
1,203
200,396
593,006

645,000
1,044,387
381,605
206,079
280,672
23,068656
77,172
83,012
2,741,655
3,261,362

825,000
1,114,426
393,309180,205
265,91232,464685
5,068
83,82780,882
2,981,782
3,652,660

820,000
1,188,418
394,736
176,313265,91232,097554
5,065
86,41574,622
3,044,135
3,630,299

777,712
1,292,854
398,014217,565
263,661
22,042834
4,831
90,53561,9783,130,031
3,716,654

767,712
1,308,619
400,681
221,763
263,548
30,562
658
4,831
92,070118,3123,208,762
3,801,769

141,373
162,638
538,687(5,259)837,440

141,373
161,188
600,116(5,385)897,293

141,373
161,196
615,030(5,400)912,200

141,659
161,477
674,259(5,489)971,906

141,898
161,726
677,182(5,488)975,319

127,609(5)
504,756
20,7985,238
658,398500
143,825
1,640,163
4,901,526

89,945(30)
521,248
13,900(12,676)
612,387529
148,970
1,659,180
5,311,840

79,700(352)
521,249(9,096)(11,766)
579,733
529
146,845
1,639,308
5,269,607

109,64473
527,128(13,363)(2,612)620,870529
174,154
1,767,460
5,484,115

119,330
117
526,873(23,280)(1,959)621,082522
173,105
1,770,030
5,571,799

13

2. Consolidated Income Statements

Millions of yen (rounded down)
2015/3

Revenue from operations
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries and affiliates
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Loss on disposal of fixed assets
Other non-operating expenses
Total non-operating expenses
Income before taxes and special items
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Gain on negative goodwill
Reversal of accrued payment
Reversal of allowance for loss on obligations of additional investments
Settlement received
Other extraordinary income
Total extraordinary income
Extraordinary loss
Loss related to retirement of fixed assets
Impairment loss
Provision for loss on obligations of additional investments
Provision for environmental measures
Provision for loss on business transfer
Loss on step acquisitions
Total extraordinary loss
Income before income taxes and minority interests
Corporation tax, inhabitants' tax and enterprise tax
Income taxes-deferred
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

2016/32017/3-1Q

2017/3

2018/3-1Q

2018/3 (Estimates)

1,110,259
156,332

1,009,408
166,199

242,147
47,3401,125,405
192,495

234,21735,843

1,200,000
195,000

287
4,577
1,372
2,850
9,087

284
4,556
605
5,503
10,949

73
2,030
581
2,692
5,378

268
4,634
872
3,605
9,380

58
2,464
198
1,206
3,927

0
5,000
500
2,500
8,000

21,072
4,780
6,454
32,306133,113

20,183
6,064
6,049
32,296
144,851

5,597
768
1,133
7,499
45,21922,743
4,453
4,827
32,024
169,851

5,742
1,159
1,222
8,125
31,64524,0006,000
2,000
32,000171,000

36,551
12,25648,807

2,709
11,3504,098
1,262
19,421

1,966
1,966

1,013
13,505
1,966
16,484

-

6,000
2,000
1,000
9,000

6,190
73,725
1,804
81,719100,201
23,190(9,814)86,825
13,48773,338

4,223
2,561
5,068
10,57022,423
141,850
43,994(422)
98,27814,851
83,4261,794
1,794
45,391
10,776
4,120
30,493
3,093
27,400

4,762
12,2606,431
23,455
162,881
43,451
2,622
116,808
14,126102,681

31,645
10,745(1,099)22,000
4,066
17,9335,000
5,000
175,000

14

53,000122,000
14,000108,000

3. Consolidated Cash Flow Statements

Millions of yen (rounded down)
2015/3

2016/32017/3-1Q

2017/3

2018/3-1Q

2018/3 (Estimates)

Income before income taxes and minority interests

100,201

141,850

45,391

162,881

31,645

175,000

Adjustment for extraordinary income or loss

32,954

(318)

1,691

12,2491,641(4,500)Depreciation and amortization

72,696

74,24518,01975,97418,75776,500Decrease (increase) in inventories

110,219(33,202)(16,873)

84,853(3,634)65,000Decrease (increase) in equity investments(35,973)(32,487)(6,843)(32,460)

4,267(130,000)

Other(45,659)

9,316(74,790)(82,780)(814)

26,000

Income taxes, etc.

(34,360)(23,582)(25,933)(52,189)(29,876)(35,000)

Net cash provided by (used in) operating activities

200,078

135,821(59,339)

168,527

21,987173,000

Proceeds from sales of marketable securities andinvestment securities

624

29,043272

10,634

4,635

5,000

Proceeds from sales of property and equipment andbeneficial interests in trust of property and equipment

167,645

22,80676

11,3289,601

15,000Purchases of property and equipment(177,331)(275,316)(70,776)(275,372)(54,225)(357,000)

Other(37,506)(7,536)(3,238)(73,883)(8,660)(19,000)

Net cash provided by (used in) investing activities(46,568)(231,003)(73,666)(327,292)(48,649)(356,000)

Newly acquired funds

328,053

503,154

125,914

298,515

49,371

398,000

Repayment(505,027)(154,773)(41,196)(243,051)(49,234)(237,000)

Cash dividends paid

(21,684)(29,082)(15,975)(33,709)(17,079)(37,000)

9,549(10,061)(4,629)(26,676)

32,3560

Net cash provided by (used in) financing activities(189,109)309,237

64,112(4,921)

15,413

124,000

Effect of exchange rate on cash and cash equivalents

1,235

(153)

(3,261)(5,144)(1,363)-

Net increase (decrease) in cash and cash equivalents(34,363)

213,902(72,154)(168,830)(12,612)(59,000)

Increase in cash and cash equivalents from newly
consolidated subsidiary

6,658

-

-

-

-

-

Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation

-

-

-

(219)

-

-

1,455

-

-

-

-

-

224,739
198,489

198,489
412,392

412,392
340,237

412,392
243,341

243,341
230,729

243,000
184,000

Other

Increase in cash and cash equivalents resulting
from share transfer
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year15

4. Total Assets, Capital Investment and Depreciation (Consolidated)
2015/3

Millions of yen (rounded down)

2016/32017/3-1Q

2017/3

2018/3-1Q

2018/3 (Estimates)

Total assets

4,901,526

5,311,840

5,269,607

5,484,115

5,571,799

5,800,000

Capital investment

177,331

275,316

70,776

275,372

54,225357,000

Depreciation

72,696

74,24518,01975,97418,75776,5002017/3

2018/3-1Q

Millions of yen (rounded down)

Capital investment
2018/3-1Q

2018/3 (Estimates)

Total

54,225

Total

357,000

Mitsubishi Estate(Breakdown)

39,073

Mitsubishi Estate(Breakdown)

181,000

Office Building Business
Marunouchi redevelopment
construction cost etc.
Refurbishment cost etc.

27,017

Marunouchi redevelopment
construction cost etc.

107,000

6,987

Refurbishment cost etc.

22,000Lifestyle Property Business

2,214

Lifestyle Property Business

46,000Other

Office Building Business

15,152(Breakdown)

Other

176,000(Breakdown)

Rockefeller Group, Inc.

8,801

Rockefeller Group, Inc.

Mitsubishi Jisho Residence

2,588

Mitsubishi Jisho Residence

48,00030,000Consolidated TMK
Sunshine City

2,070

Tokyo Ryutsu Center

15,0001,348

Mitsubishi Estate・Simon

10,000Sunshine City

10,000Consolidated TMK

8,000

Marunouchi Heat Supply

5,000Royal Park Hotels & Resorts
Yokohama Sky Building

2,000

2016/32017/3-1Q

2,000* Major inter-group transactions are eliminated.

5. Interest-Bearing Debt (Consolidated)

Millions of yen (rounded down)

2015/3

2018/3 (Estimates)

Interest-bearing debt

1,929,355

2,291,038

2,358,604

2,396,994

2,423,800

2,555,000

Net interest-bearing debt *1
Interest expense

1,730,866
21,0991,878,645
20,1892,018,366
5,597

2,153,652
22,743

2,193,071
5,742

2,371,000
24,000Financial income and expense (net) *2(16,234)(15,348)(3,493)(17,841)(3,219)(19,000)

Average interest rate *3

1.08 %

0.96 %

0.96 %

0.97 %

0.95 %

0.97 %

Debt equity ratio *4

1.29

1.52

1.58

1.50

1.52

1.53

-

1.33

1.31

1.26

1.27

1.29

Debt equity ratio after hybrid debt deductions *4,5
Net interest-bearing debt／EBITDA

7.2 times

7.5 times- times

7.7 times- times

8.4 times

After hybrid debt deductions *5- times

7.0 times- times

7.1 times- times

7.8 times*1 Net interest-bearing debt = Interest-bearing debt - Cash and cash equivalents*2 Financial income and expense = Interest income + Dividend income - Interest expense*3 Average interest rate = Interest expense / Interest-bearing debt (average)*4 Debt equity ratio = Interest-bearing debt / Shareholders' equity*5 The subordinated bond and subordinated loan subject to equity credit from a credit rating agency (50% equity treatment) are shown after deductions.

16

6. Major Consolidated Subsidiaries
2018/3-1Q Results

Millions of yen (rounded down)
Revenue fromoperations

Share of MEC

Marunouchi Heat Supply Co., Ltd.
Sunshine City Corporation
Mitsubishi Estate・Simon Co., Ltd.
Tokyo Ryutsu Center*
Mitsubishi Jisho Residence Co., Ltd.
Mitsubishi Estate Home Co., Ltd.
Mitsubishi Jisho Community Co., Ltd.
Rockefeller Group, Inc.
Mitsubishi Estate Europe Limited
Mitsubishi Jisho Sekkei Inc.
Royal Park Hotels & Resorts Co., Ltd.
Royal Park Hotel Co., Ltd.
Mitsubishi Real Estate Services Co., Ltd.

Net income

Total assets

Shareholders' equity

Interest-bearing
debt

Depreciation-

103,725

22,47643,39037,463

4,628,446

1,400,109

2,167,423

10,889100.00%64.16%
63.20%
60.00%
56.15%
100.00%100.00%71.47%
100.00%100.00%100.00%100.00%55.71%
100.00%-17,183
3,115
6,965
10,854
1,788
48,3191,707
11,74011,983
1,737
2,724
5,956
2,673
5,763
234,217

1,145
194
2,067
4,531
578
(22)
(1,168)
785
2,106
1,021
(70)
370
200
160
35,843

1,135
180
1,986
4,606
526
(415)
(1,151)
805
1,743
933
(70)
368
189
163
31,645

777
159
1,384
3,184
389
(277)
(1,152)
661
(38)
706
(59)
225
129
108
17,933

61,73625,214106,297
96,58268,004
558,600
10,657
14,496394,898
136,970
24,2799,954
15,24023,1295,571,799

13,87821,201
57,78635,75932,28957,196219
7,501
228,01773,33018,3871,795
8,015
14,4891,596,402

6
1,912
25,71726,36016,862437,036
120,218
60,549
3,537
3,712
24
2,423,800

23
583
1,301
1,268
249
395
53
89
1,900
508
27
175
182
79
18,757

Mitsubishi Estate Co., Ltd.
Mitsubishi Jisho Property Management Co., Ltd.

Operating income

Income before taxes
and special items* Tokyo Ryutsu Center Inc. becomes a Mitsubishi Estate consolidated subsidiary in FY2017-2ndQ.
2017/3-1Q Results

Millions of yen (rounded down)
Revenue fromoperations

Share of MEC
Mitsubishi Estate Co., Ltd.
Mitsubishi Jisho Property Management Co., Ltd.
Marunouchi Heat Supply Co., Ltd.
Sunshine City Corporation
Mitsubishi Estate・Simon Co., Ltd.
Mitsubishi Jisho Residence Co., Ltd.
Mitsubishi Estate Home Co., Ltd.
Mitsubishi Jisho Community Co., Ltd.
Rockefeller Group, Inc.
Mitsubishi Estate Europe Limited
Mitsubishi Jisho Sekkei Inc.
Royal Park Hotels & Resorts Co., Ltd.
Royal Park Hotel Co., Ltd.
Mitsubishi Real Estate Services Co., Ltd.

Operating income

Income before taxes
and special items

Net income

Total assets

Shareholders' equity

Interest-bearing
debt

Depreciation-

110,550

24,93933,41424,944

4,457,968

1,291,512

2,135,776

10,517100.00%64.16%
63.20%
60.00%
100.00%100.00%71.47%
100.00%100.00%100.00%100.00%55.71%
100.00%-15,914
3,028
6,645
10,373
42,106
2,467
11,37021,374
1,579
3,204
5,950
2,712
5,187
242,147

1,035
219
1,605
4,077
1,658
(1,007)519
10,828
846
56
341
275
(220)
47,340

1,034
217
1,392
4,140
1,248
(1,006)545
10,557
828
77
338
263
39
45,219

707
232
973
2,838
2,310
(1,008)
359
5,959
648
44
471
179
87
27,40071,57724,981
96,414
90,682565,723
11,50012,465332,277
149,357
22,93011,27015,01023,3785,269,607

24,81820,51554,341
32,39052,1781,923
6,047
191,402
74,033
18,214
2,316
7,798
15,425
1,491,933

13
1,137
18,437
29,822447,035
103,751
71,045
4,237
3,690
35
2,358,604

29
520
1,322
1,368
442
52
96
1,993
561
24
196
180
78
18,019* Before consolidation adjustments.

17