February 9, 2023

Summary of Consolidated Financial Statements for FY2023-3Q(the Fiscal Year Ending March 31, 2023)＜under Japanese GAAP＞

Company Name:

Mitsubishi Estate Co., Ltd.

Listed Stock Exchanges: Tokyo

Securities Code:
Representative:

8802
Junichi Yoshida, President & CEO
Motohiro Sato, General Manager of the
Corporate Communications Department

URL: https://www.mec.co.jp/en/

Inquiries:

TEL: +81-3-3287-5200

Filing of Quarterly
February 14, 2023
Report (Planned):
Supplementary documents on quarterly financial results: Yes ( FACT BOOK )Quarterly investors meeting: Yes ( for institutional investors and analysts, in Japanese )*Figures are rounded down to the nearest million.
1. Consolidated Results for FY2023-3Q (April 1, 2022 – December 31, 2022)* Percent figures for operating revenue, operating profit, ordinary profit, and profit attributable to owners of parent express the percentage changes from thecorresponding period of the previous fiscal year.
(1) Consolidated Results
Profit Attributable
Operating Revenue
Operating Profit
Ordinary Profit
to Owners of Parent
Millions of yen

3Q FY2023
906,324
3Q FY2022
904,570
Note: Comprehensive Income:
3Q FY2023%

Millions of yen%

Millions of yen%

Millions of yen

%

0.2
16.3

200,012
172,340

16.1
23.6

183,004
150,760

21.4
8.1

102,80987,14218.0(1.8)¥270,056 million (89.5%)

EPS

Yen
77.79
65.28

Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Dec. 31, 2022
Mar. 31, 2022
(Reference) Total Equity

2. Dividends(Date of Record)¥142,525 million (44.9%)

Diluted EPS
Yen
77.79
65.28

3Q FY2023
3Q FY2022(2)

3Q FY2022

7,012,769
6,493,917
Dec. 31, 2022

1Q

Total Equity to Total Assets

Millions of yen¥2,172,467 million

2Q

Yen
—
—

%

2,415,605
2,236,432
Mar. 31, 2022

3Q

Yen
16.00
19.00

31.0
30.8
¥2,003,225 million

Annual

4Q

Yen
—
—

FY2022
FY2023
FY2023 (Planned)
Note: Revisions to dividend forecast of the fiscal year ending March 31, 2023: No

Yen
20.00

Yen
36.00

19.00

38.00

3. Forecast of Consolidated Financial Results for FY2023 (April 1, 2022 — March 31, 2023)* Percent figures for operating revenue, operating profit, ordinary profit, and profit attributable to owners of parent express the percentage changes from theprevious fiscal year.
Profit Attributable
EPS
Operating Revenue
Operating Profit
Ordinary Profit
to Owners of Parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Full Fiscal Year
1,393,000
3.2
291,000
4.3
267,000
5.2
165,000
6.3
124.75
Note: Revisions to forecast of consolidated financial results for FY2023 during this quarter: Yes
Note: The Company repurchased its own shares in accordance with the resolution at the board of directors meeting held on November 10, 2022, and cancelled
the treasury shares by the decision of the President and Chief Executive Officer of the Company. However, the impact of these is not taken into accountin regards to“EPS”in the forecast of consolidated financial results for FY2023.

-1-

4. Others(1) Changes in Important Subsidiaries during the Period (Changes in Specified Subsidiaries in accordance with Changes in the Scope of Consolidation): No(2) Adoption of the Simplified Accounting Method and Special Accounting Practices in the Preparation of Quarterly Consolidated Financial Statements: No(3) Changes in Accounting Principles, Procedures, Presentation Methods, etc., Concerning the Preparation of Consolidated Financial Statements (Recorded under“Changes in Significant Matters in the Preparation of Consolidated Financial Statements”)
1) Changes of accompanying revisions in accounting standards: Yes
2) Changes of accompanying revisions other than 1. above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of Outstanding Shares (Common Stock)1) Number of outstanding shares at the fiscal period-end (including treasury stock)
Dec. 31, 2022
2)

Dec. 31, 2022
3)

1,324,288,306 sharesMar. 31, 2022

1,391,478,706 sharesMar. 31, 2022

68,852,376 shares

Number of shares of treasury stock at the fiscal period-end
10,058,959 shares

Average number of shares for the period (quarterly consolidated cumulative basis)
Dec. 31, 2022

1,321,578,906 sharesDec. 31, 2021

1,334,857,968 shares

Implementation status of review processes
This Summary of Consolidated Financial Results is not subject to the review processes under the Financial Products and Exchange Law.
Cautionary Statement with respect to Forecast of Consolidated Financial Results
The forecasts and projected operating results contained in this report are based on information and data available to the Company at the time of disclosure as well as
certain assumptions deemed rational. Therefore, actual performance may differ significantly from such forecasts due to various factors.
Details can be found on our website. (https://www.mec.co.jp/en/ir/library/)
Please refer to FACT BOOK for the details of revisions to the forecast of consolidated financial results announced today.
5. Notes to Quarterly Consolidated Financial Statements(Notes on Significant changes in shareholders' equity)(The Cancellation of Treasury Stocks)
The Company announces that, pursuant to the delegation of authority approved by resolutions of the Board of Directors of the Company, the President andChief Executive Officer of the Company decided to cancel the treasury shares in accordance with Article 178 of the Companies Act on November 10, 2022 andcarried out the cancelation of 67,190,400 shares on November 30, 2022. By doing so, retained earnings and treasury shares decreased by 129,285 million yen
during the third quarter under review, thus outstanding amounts of retained earnings and treasury shares at the end of the said period was 1,085,325 million yen
and 18,795 million yen, respectably.
(Significant Subsequent Events)(Business combinations through acquisition)(1) Outline of business combination①Name of acquired company and its business description
Name of acquired company: Regus Japan Holdings Co., Ltd.
Business: Management and operations of rental offices, co-working spaces, etc.
②Primary reason for business combination
By succeeding existing domestic business sites of Regus Japan and acquiring an exclusive partnership as well as development and operating rights of IWG plc(hereafter“IWG”), one of the world's largest workspace provider (Main office: Switzerland, CEO：Mark Dixon), we aim to expand our flexible and workspacebusiness through integration of both strengths: our Group's customer network in various businesses and property development capabilities and IWG'scompetitive advantages based on global standard.
③Date of business combination
February 1, 2023
④Legal form of business combination
Acquisition of shares⑤Name of the acquired company after business combination
Regus Japan Holdings Co., Ltd.
⑥Acquired percentage of voting rights
100%⑦Bases for choosing the acquiring company
The Company substitutionally gained control over the acquired company through share acquisition.

-2-(2) Acquisition cost of the acquired company and breakdown by type of consideration
Payment for the acquisition on the date (cash and deposits): 34,797 million yen
Acquisition cost: 34,797 million yen
Acquisition cost will be determined after making price adjustment based on the share transfer agreement.
(3) Description and amount of major acquisition-related expense
To be determined.
(4) Amount, origin, amortization method, and amortization period of Goodwill resulting from the acquisition
To be determined.
(5) Breakdown of assets acquired and liabilities assumed on the acquisition date
To be determined.

-3-

(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Trade notes, accounts receivable, andcontract assets
Securities
Real estate for sale
Real estate for sale in process
Real estate for development
Costs on construction contracts inprogress
Other inventories
Equity investments
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation andimpairment
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation andimpairment
Machinery,equipment
andvehicles, net
LandLand in trust
Construction in progress
Other
Accumulated depreciation andimpairment
Other, net
Total
property,plant
andequipment
Intangible assets
Leasehold interests in land
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Leasehold and guarantee deposits
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of December 31, 2022

233,117

276,11260,64549,0194,280
41,239299,532
724

6,735
130,527
472,080
719

4,316

6,933

1,575
624,521
87,260(422)
1,356,789

1,749
770,672
117,035(609)
1,830,977

2,919,944

2,947,263(1,689,430)(1,752,009)

1,230,513
99,855

1,195,254
100,412(68,647)(71,447)

31,20828,9652,310,551
585,470
169,700
61,3982,316,207
575,342
221,328
64,139(42,852)(44,474)

18,545

19,665

4,345,989

4,356,763

82,541
25,550108,092

82,80425,415108,219299,6172,324
140,230
45,99825,887
169,535(548)
683,045
5,137,127
6,493,917

296,199
2,566
138,682
51,01024,253
204,729(633)
716,808
5,181,791
7,012,769

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Trade notes and accounts payable
Short-term borrowings
Current
portionof
long-term
borrowings
Commercial papers
Current portion of bonds payable
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Leasehold and guarantee deposits
received
Deferred tax liabilities
Deferred tax liabilities for land
revaluation
Retirement benefit liability
Provision for retirement benefits for
directors (and other officers)
Provision for environmental measures
Negative goodwill
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated
othercomprehensive
incomeValuationdifferenceonavailable-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreigncurrencytranslation
adjustment
Remeasurements of defined benefit
plans
Total
accumulated
othercomprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

As of December 31, 2022

60,516
182,052

45,139207,348

79,92890,551－90,00029,445
189,099
631,043

200,000
30,0009,024
299,315881,379

786,335
1,598,562

827,824
1,662,912

451,749445,224

274,176

287,021264,082

264,082

27,40228,585

464

502

888
85,526137,252
3,626,441
4,257,484

885
86,939111,805
3,715,784
4,597,163

142,414
159,749
1,165,344(132,483)
1,335,024

142,414
159,721
1,085,325(18,795)
1,368,666

130,841

133,264103
526,417

4,594
526,4172,162

133,121

8,675

6,403

668,200

803,801201
233,005
2,236,432
6,493,917

193
242,945
2,415,605
7,012,769

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statements of Income)(Millions of yen)
Nine months ended
December 31, 2021
Operating revenue
Operating costs
Operating gross profit
Selling,
generalandadministrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Contribution for construction
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of shares of subsidiaries andassociates
Total extraordinary income
Extraordinary losses
Loss related to retirement of non-current
assetsLoss on valuation of investment
securities
Loss on valuation of equity investments
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent-6-

Nine months ended
December 31, 2022

904,570
664,140
240,429906,324
634,631271,693

68,08871,680172,340

200,012

555
6,495

557
7,293

354

315

1,455
4,055
12,917－
3,605
11,771

15,487
10,063
8,945
34,496
150,760

18,4493,371
6,957
28,779183,004

－
7,756

6,401
2,459

1,853

－

9,609

8,860

14,060

16,249－2,637－
14,060146,30939,254
5,199
44,454
101,855

4,543
23,430168,435
38,5986,859
45,458122,977

14,712

20,167

87,142

102,809(Quarterly Consolidated Statements of Comprehensive Income)(Millions of yen)
Nine months ended
December 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit
plans, net of tax
Share of other comprehensive income ofentities accounted for using equity
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests-7-

Nine months ended
December 31, 2022

101,855

122,977

(17)

2,426

493
41,392

3,243
141,468(1,032)(2,254)

(165)

2,195

40,670142,525

147,079
270,056

125,588

238,410

16,936

31,645

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine months ended
December 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on sale and retirement ofproperty, plant and equipment
Loss (gain) on sale of securities
Loss (gain) on valuation of securities
Loss (gain) on sale of shares ofsubsidiaries and associates
Loss on valuation of equity investments
Bond issuance costs
Amortization of goodwill
Proceeds
fromcontribution
forconstruction
Share of loss (profit) of entities accounted
for using equity method
Increase (decrease) in provisions
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
and contract assets
Decrease (increase) in inventories
Decrease(increase)inequityinvestments
Decrease (increase) in advance payments
to suppliers
Decrease (increase) in leasehold andguarantee deposits
Increase (decrease) in trade payables
Increase(decrease)inaccruedconsumption taxes
Increase (decrease) in leasehold andguarantee deposits received
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Proceeds from withdrawal of time
deposits
Payments into time deposits
Proceeds from sale and redemption of
securities
Purchase of securities
Proceeds from sale of property, plant andequipment
Purchase of property, plant andequipment-8-

Nine months ended
December 31, 2022

146,309
67,933

168,435
69,775

16,722

1,006(7,756)－(2,459)2,637(1,853)

－

－
282
1,901

4,543
269
2,236

(1,455)

－

(354)

(315)

213

289

(2,372)(7,210)(7,051)
15,487(7,850)18,4497,068

13,182

71,409(122,862)(15,858)

3,343

2,900

333

(5,793)

1,559(17,211)(15,371)

5,759

2,245

(9,554)(6,524)(28,074)
238,653
6,759(15,309)(55,254)(15,836)
109,876
8,452(17,315)(60,776)

174,848

40,236

2

67

(407)

(1)

833

2,015

(887)

(1,945)

7

10,189(217,310)(205,278)

Proceeds from sale and redemption of
investment securities
Purchase of investment securities
Purchase of leasehold interests in land
Proceeds from collection of short-termloans receivable
Short-term loan advances
Proceeds from collection of long-termloans receivable
Long-term loan advances
Proceeds from sale of shares ofsubsidiaries resulting in change in scopeof consolidation
Proceeds from contribution received forconstruction
Other, net
Net cash provided by (used in) investing
activities

-9-

8,398

5,847

(6,802)(523)(3,565)－50－(3,960)

(352)

285

9

(66)

(212)

1,883

－

1,455

－

(6,368)(7,682)(223,410)(200,909)

(Millions of yen)
Nine months ended
December 31, 2021
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Net increase (decrease) in commercial
papersRepayments of finance lease liabilities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Purchase of shares of subsidiaries not
resulting in change in scope of
consolidation
Net decrease (increase) in treasury
sharesDecrease (increase) in deposit paid forpurchase of treasury stock
Dividends paid
Dividends paid to non-controllinginterests
Proceeds from share issuance tonon-controlling shareholders
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodIncrease in cash and cash equivalents
resulting from inclusion of subsidiaries in
consolidation
Decrease in cash and cash equivalents
resulting from exclusion of subsidiaries
from consolidation
Cash and cash equivalents at end of period-10-

Nine months ended
December 31, 2022

23,973

6,124

14,000200,000(228)
222,190(87,699)
69,717(45,000)(628)
184,338(83,215)
59,730(80,000)(7,958)－(19,858)(16,163)－(10,345)(46,815)(51,613)(8,791)(12,278)

4,547

2,773

27

(68)

118,105

198,654

4,025

9,045

73,56847,027

172,307234,244－740－(2,629)245,875

279,384