FY 2019 / Financial Results(For the Year Ended March 31, 2019)

IR Presentation

Contents

MITSUBISHI ESTATE CO., LTD.

Summary of IR Presentation

2

Financial Results Highlights andProspects of Mid-Term Management Plan

3

Strengthening Capital Policy / Corporate Governance

10

Financial Supplemental Data

18

Detailed Business Units' Review

27

Office Building Business

30

Lifestyle Property Business46

Residential Business

51

International Business58

Other business

63

Investment / Financial Data etc.

661Summary of IR Presentation① FY2019 Results and FY2020 Estimates (Prospects of Mid-Term Management Plan)• FY2019 resulted in overall increase from building rental profits and capital gains, etc.
• FY2020 (the final year of Mid-Term Management Plan) is expected to achieve the target of
all KPIs (Key Performance Indicators) (Operating Income, ROA, and Net Debt/EBITDA)②Refinement of Capital Policy (Decided to execute share buyback worth ¥100 billion)• Working toward the goal of enhancing capital efficiency and maintaining financial stability
by appropriately controlling Balance Sheet, based on ‟flexible capital policy in response toreal estate market conditions“.
• Decided to execute share buyback worth ¥100 billion, in light of Cash Flow having
improved more than initially expected during the current Mid-Term Management Period.

③Strengthening Corporate Governance (Non-Renewal of Countermeasures to Large-Scale Acquisitions)• Decided not to renew a plan for countermeasures to large-scale acquisitions of theshares in the Company (takeover defense measures).
• Disposed around ¥31.5 billion strategic-holding stocks in past 4 years. Plans to dispose around¥10 billion in FY2020.
MITSUBISHI ESTATE CO., LTD.

2

Financial Results Highlights and the Prospectsof Mid-Term Management Plan

MITSUBISHI ESTATE CO., LTD.

3

Financial Results Highlights and Prospects of Mid-Term Management Plan

1. Income Statement Results for FY2019
Overall increase from building rental profits and capital gains, etc.
Surpassed previous record in profits.
Millions of yen (rounded down)

Revenue from Operations
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Elimination
Operating Income
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Eliminations or corporate
Non-Operating Revenue
Non-Operating Expense
Income before Taxes and Special
Items
Extraordinary Income
Extraordinary Loss
Profit Attributable to Owners of Parent

FY2019FY2018Results
Results
1,263,283 1,194,049
529,695
506,161
106,182
97,920420,405
410,598
81,84486,92549,58822,665110,534
96,773△ 34,969 △ 26,996
229,178
213,047
147,691
147,243
32,56028,07930,42823,86026,927
24,147
9,231
4,596
6,799
8,162
△ 24,459 △ 23,043
12,391
10,44734,98332,988Change69,23323,5338,261
9,807△ 5,080
26,922
13,761△ 7,973
16,131
448
4,480
6,567
2,779
4,634
△ 1,363△ 1,416
1,944
1,994

206,587

190,506

16,081

8,170
3,818
134,608

14,71913,768120,443△ 6,549△ 9,950
14,165

Capital Gains included in Operating Income
FY2019Results
Total
48,000
Office Building Business
12,000Lifestyle Property Business
4,000
Residential Business
11,000International Business
14,000Investment Management Business
5,000
Hotel & Airport Business
2,000
Other
Eliminations or corporate-

Millions of yen (rounded off
to the nearest billion)

FY2018Results
39,00016,0002,000
1,000
15,000
1,000
3,000
1,000
-

Change9,000△ 4,000
2,000
10,000△ 1,000
4,000△ 1,000△ 1,000-

Major Factors for Changes in
Operating Income by Business

OfficeBuilding
448

International
2,779
Residential
6,567
Lifestyle
Property
4,480

Others1,855

Increase in capital gains, etc.

213,047

229,178

Increase in rental profits and capital gains, etc.

Millions of yen (rounded down)

EBITDA
Interest-bearing debt

FY2019FY2018ChangeResults
Results
320,641
302,424
18,2172,319,597 2,481,675 △ 162,078*Hotel・Airport Business, Architectural Design & Engineering, Real Estate Services, OtherMITSUBISHI ESTATE CO., LTD.

Increase in rental profits

FY2018Results

OfficeBuilding

Lifestyle
Property

Residential International

Others

FY2019Results

4

Financial Results Highlights and Prospects of Mid-Term Management Plan

2. Income Statement Estimates for FY2020
Increase in building rental profits and capital gains contributes to achieve the highest profits inconsecutive four fiscal years.
Millions of yen (rounded off
Millions of yen (rounded down)

Revenue from Operations
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Elimination
Operating Income
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Eliminations or corporate
Non-Operating Revenue
Non-Operating Expense
Income before Taxes and Special
Items
Extraordinary Income
Extraordinary Loss
Profit Attributable to Owners of Parent

FY2020FY2019Estimates
Results
1,360,000 1,263,283
590,000
529,695
120,000
106,182
402,000
420,405
137,000
81,84418,00049,588
119,000
110,534△ 26,000 △ 34,969
230,000
229,178
153,000
147,691
35,00032,56020,00030,42837,00026,927
2,000
9,231
6,000
6,799
△ 23,000 △ 24,459
9,000
12,391
32,00034,983

Change96,71760,305
13,818△ 18,405
55,156△ 31,588
8,466
8,969
822
5,309
2,440
△ 10,428
10,073△ 7,231△ 799
1,459△ 3,391△ 2,983

207,000

206,587413

10,0003,000
137,000

8,170
3,818
134,608

1,830
△ 818
2,392

Capital Gains included in Operating Income
FY2020Estimates
Total
51,000
Office Building Business
15,000Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
36,000Hotel & Airport Business
Other
Eliminations or corporate

EBITDA
Interest-bearing debt

*Hotel・Airport Business, Architectural Design & Engineering, Real Estate Services, OtherMITSUBISHI ESTATE CO., LTD.

3,000
3,000

0

OfficeBuilding
5,309

Lifestyle
Property
Others2,440
Residential△
6,571△ 10,428 International
10,073

Increase in rental profits,
capital gains, etc.

229,178

230,000

Decrease in condominium profits
Increase in rental profits, capital gains, etc.

Change3,359
230,403

ChangeMajor Factors for Changes in
Operating Income by BusinessMillions of yen (rounded down)

FY2020FY2019Estimates
Results
324,000
320,6412,550,000 2,319,597

to the nearest billion)

FY2019Results
48,00012,0004,000
11,00014,000
5,000
2,000
-

Decrease in capital gains
FY2019ResultOfficeBuilding

Lifestyle
Property

Residential International

Others

FY2020Estimates

5

Financial Results Highlights and Prospects of Mid-Term Management Plan

3. Progress on Mid-Term Management Plan ① (Final standings of each indicator)
FY2020Target and final estimates of each indicator

TargetPrevious Estimates

Current Estimates(17.5.11)(18.5.14)(19.5.14)

Growth Potential

Operating Income¥220 billion¥230 billion¥230 billion

Performance

Operating Income /Total Assets(ROA)

Around 3.5%

3.8%

3.9%

Net Debt / EBITDA

8.5 times

Around 8 times

7.4 times(Around 8 times)(Around 7.5 times)(Around 6.9 times)

Stability(Hybrid finance reflected)(Billions of Yen)FY2020Operating Income by Segment

Target(17.5.11)

Previous
Estimates

Current
Estimates(18.5.14)(19.5.14)

Changes in Capital Gains, etc.
of Operating Income
Target(17.5.11)

Office Building Business

138

150

153

Lifestyle Property Business

37

35

35

Residential Business

20

20

20

International Business

29

32

37

Investment Management Business

6

3

2

Other*

5

7

6

Eliminations or Corporate

△15

△17

△23

Total

220

230

230

Previous
Estimates

Current
Estimates(18.5.14)(19.5.14)

8

13

15

30

27

36

38

40

51

*Hotel・Airport Business, Architectural Design & Engineering Business, Real Estate Service Business, OtherMITSUBISHI ESTATE CO., LTD.

6

Financial Results Highlights and Prospects of Mid-Term Management Plan

4. Progress on Mid-Term Management Plan ② (Capital Gains and Income Gains)
Capital Gains For
Mid-Term Management Plan Period

Change in Operating Income(Billions of Yen)
240

229.1

230.0

48.0

51.0

15.2

12.6

213.0

210
39.0
180

・Accelerate property sales as encouraged by real estate market
conditions best-suited for selling・Before tax IRR results of Domestic capital recycling business:around 10％*

Estimates when developed

Final EstimatesAround ¥90～100 billion¥138 billion

24.4
150

* Average of property sold during current Mid-Term Management Plan (20 properties)

120

Increase in Rental Profits

90
149.6

165.9

166.4

60

・Rental profits from rental properties increasedaround 1.5 times from 5 years ago (FY2014)(Billions of Yen)
180

30

160.7

168.3

174.8

160
0

FY2018

Income Gain
* Excluding

FY2019Profit from Domestic
condominium business*

FY2020(E)Capital Gain

capital gain, etc. from operating income of Mitsubishi Estate Residence. Co., Ltd

MITSUBISHI ESTATE CO., LTD.

131.7

140
120

136.2

116.9

100
FY2014FY2015FY2016FY2017FY2018FY20197

Financial Results Highlights and Prospects of Mid-Term Management Plan

5. Progress on Mid-Term Management Plan ③ (Office Building Business)■New Buildings

Marunouchi Nijubashi
Building

CO･MO･RE YOTSUYA

Floor space：174,100㎡
Completion：Oct. 2018

Floor space：139,700㎡
Completion：Jan. 2020

Tokyo
Tokiwabashi Project Buildings completed in FY2018 and 2019 are
fully leased

 Buildings to be completed in FY2020 and 2021
are informally arranged for lease at over 70%
on average.
 Constant positive relocation needs, such as
location and/or facility upgrade, talentattraction, office consolidation, and work-stylereform.

■Existing Buildings
 Leasing of secondary vacancy progresses
steadily Vacancy rates of all uses in Japan at the end of
FY2020 is estimated to be 1.5％.
 A sales increase of around ¥26 billion for
6 years starting FY 2015 is expected due tocontinuous “moving in/out of tenants” such as
new leases and expansion of floor space within
the facility, and “rent revisions at lease renewal”
of existing tenants.

Floor space：686,000㎡(All buildings)
A Building Completion：Apr. 2021
B Building Completion：FY 2028

Change in increase of rent revenue due to moving
in/out of tenants, rent revisions at lease renewal(Billions of Yen)
30

25.7

Yearly change in rent revenue from moving in/out

25

of tenants and rent revisions at lease renewal

21.9

Accumulated amount (from FY2015)

20

16.0

15

11.3

10
5

2.4 2.4

4.9

7.3
4.0

4.7

FY2017FY20185.9

3.8

0FY2015
MITSUBISHI ESTATE CO., LTD.

FY2016FY2019FY2020(E)8Financial Results Highlights and Prospects of Mid-Term Management Plan

6. Progress on Mid-Term Management Plan ④ (Change in ROA / ROE / EPS)
7.8%

8.0%
7.3%

7.8%

100.20
100

96.97
7.0%

6.6%
90

86.78
6.0%

5.6%

80
74.00

5.2%
5.0%

70
60.13
4.0%

4.0%

(Yen)
110

3.8%

52.85
3.2%

3.9%

60

3.6%

3.3%

50

3.0%
40

2.0%

30
FY2015FY2016FY2017EPS(right axis)

MITSUBISHI ESTATE CO., LTD.

FY2018ROA

FY2019FY2020(E)ROE

9Strengthening Capital Policy /Corporate Governance

MITSUBISHI ESTATE CO., LTD.

10

Strengthening Capital Policy / Corporate Governance

1. The Company’s Ultimate Mission and Capital Policy
Discussed the company’s direction from 2020s onwards in light of progress on the current MidTerm Management Plan and dialogue with capital market stakeholders.
Reconfirmed the Company’s direction in Capital Policy based on our Mission.

The Mission of the
Mitsubishi Estate Group

Realizing Mission by
utilizing capital
marketContributing to the enrichment of societyby the company’s utilizing capital market
and engaging in many real estate projects.

Capital Policy to meetthe expectations ofcapital market
Aims to earn shareholder return thatreflects capital market’s expectations by
having flexible capital policy in response toreal estate market condition.

MITSUBISHI ESTATE CO., LTD.

Creation of truly meaningful society
through urban development

Capital Efficiency outperforming costof capital

Financial Stability which enables thecompany to never miss out on
promising investment opportunities【Investment】【Asset Sales】【Shareholders Return】

Maximizing return bybalancing optimal investment
into retaining business andcapital recycling business

Enhancing capital recovery
and efficiency by sales ofunderperforming assets andproperty sales timely inaccordance with market
conditions.

Controlling shareholders’equity by utilizing measures
to enhance shareholder
return policy in accordancewith market conditions.

11Strengthening Capital Policy / Corporate Governance

2. Refinement of Capital Policy ①(Dynamic between Real Estate Market Conditions and Capital Policy)
Flexible capital policy in response to real estate market conditions(Increasing corporate value by controlling Balance Sheet)
Enhancing corporate value by optimal mix of growth investment, asset sales,
shareholders return and financing arrangement in response to real estate market.
Market conditions
favorable for selling
Asset Sales:

Profits:

Shareholder return :Market conditions
favorable for buying
Aiming to maximize mid-to-long term corporate
value by combining stable Cash Flow produced
from long-term development and retaining
projects, with capital recycling business whichtakes advantage of real estate market conditions.

MITSUBISHI ESTATE CO., LTD.

Active acquisition/investment:

Capital gain:

Shareholders return :12Strengthening Capital Policy / Corporate Governance

3. Refinement of Capital Policy ② (Controlling Balance Sheet)
Flexible capital policy in response to real estate market conditions(Increasing corporate value by controlling Balance Sheet)＜Controlling Asset Side of Balance Sheet＞＜Controlling Shareholders’Equity and Liability Side of Balance Sheet ＞

Capital recycling business which takes
advantage of Real Estate Market Conditions

Maintaining Financial Stability

 When market conditions are favorable for selling, the company
accelerates to recover capital through the sales of assets
 Improving ROA and ROE by expanding non-asset businessaccompanied by retaining asset management business To encourage future growth, the company actively invests inpromising investment projects that can contribute to corporate
value enhancement.

Long-term development and retaining projectsuch as redevelopment of Marunouchi Such projects are the company’s core business Yielding stable rental Cash Flow by investing capital, regardless of
the real estate market conditions
 The company may consider recovering return in view of yield fromeach property and external environment, etc.

Sale of underperforming properties andstrategic-holding stocks
MITSUBISHI ESTATE CO., LTD.

 Financial reserve capacity which prevents missing promising
investment projects and provides opportunities to purchase realestate in buyer-favorable conditions
 Long-term and low-cost financing thanks to our high credit
standing
 During seller-favorable conditions, the company allocates its
proceeds from asset disposal to shareholders return and balance
sheet stability

Improving Capital Efficiency
 Aiming for enhancement of Capital Efficiency, we increase
numerator (net income) and decrease denominator (shareholders'equity) Controlling the amount of Shareholders' equity using flexible returnmeasures dependent upon real estate market conditions

13

Strengthening Capital Policy / Corporate Governance

4. Executing Share buyback in response to Cash Flow during the current
Mid-Term Management Plan Period ① (Cash flow)
Estimated cash flow during the current Mid-Term Management
Plan Period (FY2018～FY2020, Total Accumulation)【Cash in】

【Cash out】

 Accelerating asset sales encouraged by market
conditions favorable for selling The realized profit exceeded the estimates fromwhen the plan was originally developed.

Around ¥990 billion

Around¥600 billion

Around ¥1 trillion

Estimates when Mid-Term
Management plan was developed

Interest-bearing debt

Around ¥1 trillion

Around ¥990 billion

Around¥100 billion
Around¥120 billion

Around¥90 billion

Increase inoperatingcash flows¥150 billion

Around¥390 billion

 Investing in carefully selected projects which help toincrease the corporate value.
 Yielding a return on better-than-expected profit ataround 30% payout ratio Executing share buyback depending upon Cash Flow
condition.

Around¥750 billion

Around¥250 billion
Final Estimates

Decrease innet
investment
Around¥120
billion¥900 billion

Enhancingshareholders
return¥130 billion

Around¥780 billion

Suppressionof debt¥140 billion
Estimates when Mid-Term
Management plan was developed

Operating Cash Flow*

Net Investment

Dividend

Final Estimates

Share Buyback※ Cash flows from operating activities excluding Change in Inventories and Change in Equity Investment

MITSUBISHI ESTATE CO., LTD.

14

Strengthening Capital Policy / Corporate Governance

5. Executing Share buyback in response to Cash Flow during the current
Mid-Term Management Plan Period (Rationale)①Motivations for improving Capital Efficiency
 Managing total amount of Shareholders' equity through share buyback
 Intend to improve Capital Efficiency (ROE) and EPS②Cash flow exceeding expectations during the current Mid-Term Management Plan Period
 Realizing estimate-exceeding income gain, thanks to implementation of the tasks to reinforce income
streams so far, together with the favorable real estate market
 Accelerating capital recovery by taking advantage of real estate market conditions favorable for selling With cost of capital in mind, investing in carefully-selected projects which help to increase the corporatevalue
 Due to the increase of long-term redevelopment projects, project investment will occur next period
The company is now able to both increase shareholders’ return and maintain financial stability

The company decided to execute share buyback worth ¥100 billion in light of the two factors listed
above and the current stock price. Going forward, the company will continuously consider optimalmeasures for shareholders’ return, in response to market conditions and cash flow status.

MITSUBISHI ESTATE CO., LTD.

15

Strengthening Capital Policy / Corporate Governance

6. Major development plan, etc. contributing growthin the next management plan and onwards
Office Building BusinessTokyo
Tokiwabashi Project

Outlet Mall Business

Areas where we hereafter focus on in
Marunouchi (Tokiwabashi / Yurakucho)【Expansion Plan】
・Gotenba (Phase 4 Expansion)
・Rinku (Phase 5 Expansion)【New Development Plan】
・Hanazono (Saitama)・Joyo (Kyoto)

Tokiwabashi
Area
Tokyo Station

International Business

Yurakucho
Area

Akasaka
Station1271 Avenue of the Americas(New York)(Tentative) 8 Bishopsgate(London)Circular Quay Tower(Sydney)

Reconstruction Site

Kokusai Shin-Akasaka Building
Joint Reconstruction
MITSUBISHI ESTATE CO., LTD.

CO･MO･RE YOTSUYA

Daswin Project(Jakarta)

Yoma Central(Yangon)16

Strengthening Capital Policy / Corporate Governance

7. Strengthening Governance①Non-Renewal of Countermeasures to Large-Scale Acquisitions•

The company decided at the board meeting not to renew a plan for countermeasures to large-scale acquisitions of theshares in the company (takeover defense measures) that will terminate the validated period in June 2019•

To enhance corporate value on a medium- to long-term basis, the company puts effort in communicating stock market
and appropriate measures②Changes to composition of Committees (To be determined at the shareholders’ meeting in late June)•

Nominating Committee, following Remuneration Committee, will consist of independent outside directors only•

The Chair of the Audit Committee will be independent outside director (Consequently, all 3 Committee Chairs will be
independent outside directors)③Disposal of strategic-holding stocks•

Sold 28 brands* and total around ¥31.5 billion ofshares held as strategic-holding stocks (listed shares)in the past 4 years•

Plans to carry out disposal of ¥10 billion in FY2020•

Routinely consider purpose of holdings and dispose
when purpose is not clear

Change in disposal of strategic-holding stocks(Billions of Yen)
17.9
20

15

12.2

10
5

*Including

partial disposal of holding shares

MITSUBISHI ESTATE CO., LTD.

10.0

1.4

0
FY2016FY2017FY2018FY2019FY2020(E)17Financial Supplemental Data

MITSUBISHI ESTATE CO., LTD.

18

Financial Supplemental Data

1. Management Indicator

FY2017(Results)

FY2018(Results)

FY2019(Results)

FY2020(Estimates)(Reference)
Mid-term
Management Plan

Operating income(Growth potential) (Billions of yen)

192.4

213.0

229.1

230.0

220.0

Operating income / Total assets (ROA)(Performance)

3.6%

3.8%

4.0%

3.9%

Around 3.5%

Net interest-bearing debt / EBITDA(Stability) (times)

7.7

7.3

6.7

Around 7.4

Around 8.5

Net interest-bearing debt / EBITDA(after hybrid-debt deduction) (times)

7.1

6.7

6.1

6.9

Around 8

Annual dividends per share (yen)

20

26

30

31

-

27.0%

30.0%

30.9%

30.9%

-

Dividend payout ratio

MITSUBISHI ESTATE CO., LTD.

19

Financial Supplemental Data

2. Changes in EPS and Dividends
 Around 30% payout ratio is expected for FY2019 and FY2020
 EPS around 2.2 times and dividend per share around 2.6 times more in FY2020 compared with
FY 2014
(Yen)

32%
96.97

100

30.9%

100.20
30.9%

86.78
80

31%

30%

74.00
30.0%
60.13

60

29%

52.85
46.34

28%

40

27.0%
26.6%

26.5%
20

12.00

16.00

14.00

26.00

30.00

31.00

20.00
26%

25.9%

0

FY2014FY2015FY2016EPS

MITSUBISHI ESTATE CO., LTD.

27%

FY2017

Dividends per ShareFY2018
Payout ratio (right axis)

FY2019FY2020(Estimates)

25%

20

Financial Supplemental Data

3. Balance Sheet
Millions of yen (rounded down)

Current assets
Cash
Notes and accounts receivable-trade
Property for sale
Property for sale in progress
Property for development
Equity investments
Other
Fixed assets
Tangible assets
Intangible assets

Investment securities
Other
Total assets

At March 31,
2019
1,072,869
176,81462,603
84,104
268,152996
387,385
92,8114,701,323
4,088,084
95,128258,527

At March 31,
2018
1,217,690
287,153
44,67095,391
327,213
1,267
365,933
96,0594,583,759
3,981,871
94,241
272,779△ 144,820△ 110,338
17,932△ 11,287△ 59,060△ 271
21,451△ 3,247
117,563
106,212886△ 14,252

259,5815,774,193

234,864
5,801,450

24,714△ 27,256

Change* From FY2019/3-1Q onward, the amendment to Standard for Tax Effect Accounting
announced on February 16th, 2018 has been applied. Thus figures on the Consolidated
Balance Sheets as of the end of March, 2018, are also modified based on the application of
the amendment.

Total Assets(as of March, 2019)
International
Business
692,325
Residential
Business
665,788

Lease obligations
4,592

Lifestyle
Property
520,707

MITSUBISHI ESTATE CO., LTD.

Other accumulated comprehensive income

Stock acquisition rights
Non-controlling interests
Total liabilities and net assets(as of March, 2019)△ 105,273
23,850△ 3,202△ 72,933
83,3258,837
7,824△ 129,124△ 53,744△ 127,365
51,98578,017
96,123△ 23,829△ 24
5,746△ 27,256

2,319,597
Loans
1,506,089(as of March, 2019)
Short-term
4.6%

Floating
23.8%

Bonds
808,917

Building
Business
3,551,450

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term debt
Bonds due within one year
Other
Long-term liabilities
Bonds
Long-term debt
Other
Net assets
Shareholders’ equity

ChangeConsolidated interest-bearing debt Consolidated interest-bearing debt Consolidated interest-bearing debt
(as of March, 2019)
Fixed / Floating rate ratio
Long-term / Short-term ratio

Other343,919

5,774,193

Millions of yen (rounded down)
At March 31, At March 31,
2019
2018
3,817,088
3,922,362
688,942665,091
57,967
61,16986,156
159,090
231,065
147,73975,00066,162
238,753
230,929
3,128,145
3,257,270
733,916
787,661
1,188,866
1,316,232
1,205,357
1,153,372
1,957,105
1,879,088
1,157,824
1,061,700
612,819
636,648302
326
186,159
180,412
5,774,193
5,801,450

2,319,597
Fixed
76.2%

2,319,597

Long-term
95.4%

21

Financial Supplemental Data

4. Unrealized Gain of Income Generating Assets : Current Status ①
Unrealized gain rose around ¥480 billion year on year, supported by declines in thecap rates and cash flow improvement
Unrealized gain of income generating assets(Billions of Yen)
8,000

Book value

Unrealized gain

7,941.1
7,383.4

Adjusted BPS

5,395.6

2,800

5,498.9
2,963.5

5,000

3,422.8

2,643

3,898.4
2,384

2,569.0
2,096.4

3,241

3,300
2,950

6,079.0

4,000

BPS

(Yen)

6,791.9

7,000
6,000

BPS and Adjusted BPS*

2,178

2,300

2,180.7

2,015

1,800

3,000
2,000
3,299.2

3,318.1

3,509.9

3,828.4

3,960.5

4,042.7
1,300

1,000

1,148

1,078

1,088

FY2015FY2016

1,224

1,276

958

0
FY2014FY2015FY2016FY2017FY2018FY2019800
FY2014FY2017FY2018FY2019＊ BPS including unrealized gain (after tax)

MITSUBISHI ESTATE CO., LTD.

22

Financial Supplemental Data

5. Unrealized Gain of Income Generating Assets :Current Status ②

Breakdown of Unrealized Gain

Change in Rental Profits(Billions of Yen)

180

International
10%

174.8
168.3

170
160.7
160

Domestic(Outside of Marunouchi)
15%

150

Marunouchi
New Building*46%

Marunouchi
Existing Building
29%

136.2

140

131.7

130
120

116.9

110
100
FY2014FY2015FY2016FY2017FY2018FY2019*Redeveloped properties after the completion of Marunouchi Building

MITSUBISHI ESTATE CO., LTD.

23

Financial Supplemental Data

6. FY2019 Consolidated Cash Flow
FY2018Results

FY2019Results

293,338

345,954

52,616217,000△ 128,954

Depreciation and amortization

77,54580,336

2,791

84,0003,664

Change in Inventories

86,614132,337

45,723120,000△ 12,337△ 53,837△ 9,124

44,713△ 164,000△ 154,876△ 286,841△ 271,083

15,758△ 351,000△ 79,917

5,277

13,871

8,594

10,000△ 3,871

Capital Investment△ 289,570△ 285,089

4,481△ 309,000△ 23,911

Cash flow fromfinancing activities

37,203△ 192,473△ 229,676

107,000

299,473

Cash and cash equivalents
at end of year

286,859

179,308△ 107,551

152,000△ 27,308

6,497

74,871

68,374△ 134,000△ 208,871

Cash flows fromoperating activities

Change in Equity Investment

Cash flows frominvesting activities
Proceeds from sales ofinvestment securities

Free cash flow

MITSUBISHI ESTATE CO., LTD.

ChangeFY2020Estimates

Change24

Financial Supplemental Data

7. Investment-Return in Mid-Term Management Plan
Estimates when Mid-Term Management plan was developed (FY2018～FY2020)
Investment

Return(Billions of Yen)

Net Investment

Office Building Business

500

200

300

Lifestyle Property Business

200

50

150

Residential Business

850

750

100

(700)

(600)

(100)

International Business

400

150

250

<Group-wide>business model
Innovation Investments

100(Domestic condominium)

Total

2,050

1,150

900

(Domestic condominium)

(700)

(600)

<100>

Final Estimates (FY2018～FY2020)(Billions of Yen)

Investment

ReturnNet Investment

Total

2,010

1,230

780

(Domestic condominium)

(570)

(580)

(-10)

MITSUBISHI ESTATE CO., LTD.

25

Financial Supplemental Data

8. Progress on investments in Mid-Term Management Plan
Carefully selected investing in the excellent growth investment to help increase
corporate value
Amount Invested (FY2018,FY2019)

Office Building
Business
Lifestyle
Property
Business

110

300

160

80

Percent ofbudget invested: 95%(¥190 / ¥200 billion)

Residential
Business
Domestic
condominium
International
Business
InvestingBusiness Model 30 30
Innovation

Total

MITSUBISHI ESTATE CO., LTD.

FY2020 Budget(Unit：Billions of Yen)

Percent ofbudget invested: 92%(¥460 / ¥500 billion)

520

290

370

Percent ofbudget invested: 80%(¥570 / ¥700 billion)

200

310

180

Percent ofbudget invested: 93%(¥810 / ¥850 billion)

Percent ofbudget invested: 123%(¥490 / ¥400 billion)

Percent ofbudget invested: 60%(¥60 / ¥100 billion)

1,270

740

Percent ofbudget invested: 98%(¥2,010 / ¥2,050 billion)
26

Detailed Business Units' Review

MITSUBISHI ESTATE CO., LTD.

27

Corporate

1. Mitsubishi Estate Group’s Business Segment
Office Building Business
Engages in the development,
leasing, and operation
management of office buildings,
mainly in Marunouchi area andother major Japanese cities.

Investment Management
Business
Providing a wide range ofservices regarding real estate
investment for investors.

MITSUBISHI ESTATE CO., LTD.

Lifestyle Property
Business
Developing shopping centers,
outlet malls, and logistics
facilities nationwide, mainly inthe major metropolitan areas.

Hotel & Airport Business
Undertaking hotel management
nationwide as the Royal Park
Hotels group. Begun private
airport management business.

Residential Business

International Business

Operating residential
condominium business under“The Parkhouse” brand andrental apartments businessunder “The Parkhabio” brand.

Undertaking office building
development and leasing
businesses in the United States
and the United Kingdom, as wellas projects in Asia.

Architectural Design &Engineering Business

Real Estate Services
Business

Mitsubishi Jisho Sekkei Inc.
provides architectural designand engineering services of
construction and civilengineering.

Mitsubishi Real Estate Services
Co., Ltd. offers real estate
brokerage, parking lot
management support, andother services.

28

Corporate

2. Business Scale

Hotel & Airport
Business
Investment
3%
Management
Business
4%

International
Business
6%

Other
Business
5%

Revenue fromOperations

Office Building
Business
41%

Around¥1,263.2
billionResidential
Business
32%
Lifestyle Property
Business
8%

Investment
Management
Business
4%

Hotel & Airport
Business
Other
1%
Business
2%

International
Business
11%

Office Building
Business
Operating Income
58%

Residential
Business
12%

Around¥229.1

Hotel & Airport
Business
Other
1%
Business
4%

Investment
Management
Business
1%

International
Business
12%

Total Assets
Residential
Business
12%

Around¥5,774.1

billionLifestyle Property
Business
13%

Office Building
Business
62%

billionLifestyle Property
Business
9%

FY2019 Results

MITSUBISHI ESTATE CO., LTD.

29

Office Building Business

MITSUBISHI ESTATE CO., LTD.

30

Office Building Business

1. Marunouchi Area Map

MITSUBISHI ESTATE CO., LTD.

31

Office Building Business

2. Pipeline

Marunouchi Area

GRAND CUBE

Marunouchi Nijubashi
Building

Marunouchi 1-3
Project

Tokyo Tokiwabashi Project

Total Floor Area: 193,600㎡ Total Floor Area: 151,700㎡ Total Floor Area: 174,100㎡ Total Floor Area: 181,000㎡
Completion: Apr. 2016
Completion: Jan. 2017
Completion: Oct. 2018
Completion: Sep. 2020

(Outside of Marunouchi)

FY2017Tokyo

Otemachi Park
Building

FY2018FY2019FY2020

FY2021

Total Floor Area: 686,000㎡(Total buildings)
Building A Completion: Apr. 2021
Building B Completion: FY2028

FY2022

msb Tamachi(musubu Tamachi)

Shinjuku Station South
Project

CO･MO･RE YOTSUYA

Kita Aoyama 2-chome
Project

Total Floor Area: 149,300㎡*
Partial Completion: May 2018*

Total Floor Area: 44,100㎡
Completion: Aug. 2019

Total Floor Area: 139,700㎡
Completion: Jan. 2020

Total Floor Area: 22,900㎡
Completion: Apr. 2020

FY2028*Tower S and Hotel facility
MITSUBISHI ESTATE CO., LTD.

32

Office Building Business

3. Earnings Related Data: Total operating floor space (Unconsolidated)
Total (Domestic) / Marunouchi / Marunouchi Redevelopment Buildings(Thousand ㎡)

6,500
6,000
5,444

5,500
5,000

4,660

4,500
4,000

3,825 3,907 3,769
3,684 3,696

4,175

4,896

5,580 5,670
5,174

5,038

5,385

5,570

5,745

5,876

4,347

3,500
2,727 2,784
2,687 2,758 2,755 2,583
2,565 2,565
2,531

3,000
2,500
2,000

1,677

1,946 2,024 1,897
1,798

2,195 2,258
1,705 1,705

1,500

1,022 1,022

1,000
500

256

256

355

03/3

04/3

05/3

489

489

06/3

07/3

2,915

743

743

08/3

09/3

1,174

1,836

1,383 1,365 1,360 1,345

0

Total (Domestic)

10/3

11/3

Marunouchi

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3(E)

Marunouchi Redeveloped Buildings*Excluding floor space in Lifestyle Property Business from 16/3

MITSUBISHI ESTATE CO., LTD.

33

Office Building Business

4. Earnings Related Data: Vacancy Rates / Average Rents (Unconsolidated)
Vacancy Rates (Marunouchi offices / All uses in Japan) /Average Rents (All uses in Japan)(yen / tsubo-month)

28,000Vacancy rate(Marunouchi offices)27,000

Average rent(All uses in Japan)

25,00024,00023,00022,00019,00024,864

22,817
6.06%

22,213

26,19324,423

23,974 23,850 23,861

8%
23,587

7%

22,602
21,902 21,711 21,733

6%

5.29%

5.64%

4.82%

5%

4.36%

18,000

3.59%

3.40%

2.77%

2.42%

1.68% 2.06%

16,00015,0003.98%
3.58% 3.58%

2.26%

2.77%

4%

4.32%
3.66%

2.86%

17,00014,00010%

9%25,23423,56021,00020,00025,842

Vacancy rate(All uses in Japan)

26,00026,702 26,900

2.93%

2.22%
2.42%

1.87%

1.82%
0.55%

0.19%

1.5%
1.65% 1.80%

1.37%

1.09%

3%

2.19%

2.42%

1.74%

13,000

2.80%

2%
1%

12,0000%
03/3

MITSUBISHI ESTATE CO., LTD.

04/3

05/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3
(E)

34

Office Building Business

5. Earnings Related Data: Office Building Business Revenue Breakdown(Unconsolidated)(Billions of Yen)FY2018(Results)

FY2019(Previously
Estimated)

FY2019(Results)

FY2020(Estimates)

Revenue from Office Building Business(Unconsolidated)

421.0

457.5

440.6

501.0

Changes from Previous Period+ 55.9+ 36.5+ 19.6+ 60.3

Rent revenue from new buildings+ 9.8+ 17.2+ 17.9+ 10.5

Rent revenue from existing buildings

+ 5.4

+ 4.9

+ 6.2

+ 3.7

Termination of master lease,closure of building for redevelopment

+ 0.7

+ 0.0

+ 0.3

△ 0.1

Moving in/out of tenants,
Rent revisions at lease renewal

+ 4.7

+ 4.9

+ 5.9

+ 3.8

Supplementary Revenue, including common
area charge

△ 6.9

+ 7.2

+ 3.3

△ 1.8

Sales of properties, etc.

+ 47.5

+ 7.0

△ 7.6

+ 48.2

MITSUBISHI ESTATE CO., LTD.

35

Office Building Business

6. Earnings Related Data: Rent Revenue Transition (Unconsolidated)
Increase / decrease of rent revenue (from the previous year)(Billions of Yen)

30
25

Existing buildings (Moving in/out of tenants, Rent revisions at lease renewal)
New buildings
Existing Buildings (Termination of master lease, closure of building for redevelopment)

+0.3

20
15

+15.3

+14.7
+23.9

10

0

+4.3

-2.5

-4.9
-10.7

+12.5

+7.3

+8.7
-3.9

-5

+15.3

+13.0

5

-1.1
-5.9

+1.9

+27.2

+6.0

-1.5

+7.3
-1.5

-10.5

-4.0

-4.6
-5.6

-10

-3.4

-6.0

-8.3

-0.7

+2.4

+4.9

+0.7

+17.9

+9.8

+4.0

+4.7

+10.5
+5.9

+3.8
-0.1

-7.5

-9.0

-10.5

-8.1

-5.0

-15

Total

-5.2

+18.5 +13.2

+6.6

-2.5

-5.4

-20

+9.5

+22.6

03/3

04/3

05/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3(E)

-2.1

-2.7

-1.6

+8.3

-1.3

+19.8

+20.5

+17.4

+2.3

-1.7

-5.1

+19.0

+11.9

+7.6

+18.5

+15.2

+24.1

+14.2

MITSUBISHI ESTATE CO., LTD.

36

Office Building Business

7. Earnings Related Data: Rental Revenue / NOI (Unconsolidated)
Rental Revenue(Regional Breakdown / Growth Rate)

100%

NOI
(Regional Breakdown / Growth Rate)

40%
12.7%

13.8%

13.7%

13.7%

100%

35%
15.2%

30%
25.8%

61.5%

24.9%

61.4%

25.0%

61.3%

25.8%

8.9%

75.9%

25%

1.7%

7.1%

7.6%
2.4%

15.3%

18.0%

17.2%

73.2%

71.6%

72.2%

5.3%
9.3%

-10%
FY2019

6.3%

-0.7%

0%

0%

25%

10%

4.6%

0%
-5%

0%

-10%
FY2016FY2017

Marunouchi

Tokyo excluding Marunouchi

Nationwide excluding Tokyo

Growth rate(Total) [right axis]

Nationwide excluding Tokyo

MITSUBISHI ESTATE CO., LTD.

30%

5%

-1.1%

Marunouchi

Growth rate(Marunouchi) [right axis]

35%

15%
8.5%

10%

-5%

FY2018

10.6%

13.4%

5%

-0.5%

FY2017

10.4%

20%

6.1%
2.3%

FY2016

11.6%

20%
60.5%
15%

7.3%

40%

FY2018FY2019

Tokyo excluding Marunouchi

Growth rate(Total) [right axis]

Growth rate(Marunouchi) [right axis]

37Office Building Business8. Office Building Market Data: New Supply of Large-Scale Office Buildings(23 Wards of Tokyo)(Millions of ㎡)

2.5
2.16
2
1.75

1.72

1.54
1.41

1.5
1.25

1

1.19 Past average supply 1.17
about 1.05 million ㎡/year(1998～2018)

0.99

0.91
0.72

0.5

1.21

1.09

0.87

0.86 0.85

0.77
0.65

1.32

0.99

0.97

Average estimate supply
for next 5 years
1.02 million ㎡/year

0.69
0.58

0.57

0.5

0.36

0

*Estimate※Research subject buildings: Buildings with total office floor area exceeding 10,000㎡
Source: Mori Building
MITSUBISHI ESTATE CO., LTD.

38

Office Building Business9. Office Building Market Data: Average Rents / Vacancy Rates(5 Central Wards of Tokyo)(yen / tsubo-month)

30,00012%
Average Rent

28,00026,0008.75%

20,000

10%
8.56%

7.98%

24,00022,0009.19% 9.04%

Vacancy Rate

8%

22,574
8.18%

5.51%

19,17517,758 17,593

18,0006.70%

21,295

21,13420,064
6.05%
18,26418,095

19,6995.30%

6%18,73017,973

17,495
16,716 16,504

17,195
16,325

3.60%

4%

4.34%

16,0003.41%

14,0002.72% 2.89%

2.80%

12,0002%

1.78%

10,000

0%
03/3

04/3

05/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

Source: Miki Shoji Co., Ltd.
MITSUBISHI ESTATE CO., LTD.

39

Office Building Business

10. Competitive Edge of Marunouchi: Vacancy Rates
5 Central Wards of Tokyo(Market) vs. Marunouchi(Unconsolidated)
10%
9%

8.75%
8.18%

9.19% 9.04%

8.56%

7.98%

8%

6.70%

7%
6.06%
6.05%

6%

5.51%

5.30%

5%
4%

4.32%
4.36%

3.66%
4.34%
3.41%

3%

2.72%

2.42%

2.77%

3.60%
2.42%

2.80%
2.19%

2.89%

2%

2.26% 2.42%
1.82%

1.74%

1%

0.55%

0.19%

1.65% 1.78%

1.37%

1.09%

0%
03/3

04/3

05/3

06/3

07/3

08/3

09/3

10/3

5 Central Wards of Tokyo(Market)

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

Marunouchi(Unconsolidated)
Source: Miki Shoji Co., Ltd.

MITSUBISHI ESTATE CO., LTD.

40

Office Building Business

11. Competitive Edge of Marunouchi: Area / number of railway lines

Marunouchi

Nihonbashi

ShinagawaShibuya

Toranomon

2,400m

1,500m

Area:

123ha

Area:

76ha

Area:

49ha

Area:

86ha

Area:

58ha

Railway lines:

28 lines

Railway lines:

5 lines

Railway lines:

9 lines

Railway lines:

8 lines

Railway lines:

2 lines©Open Street Map

MITSUBISHI ESTATE CO., LTD.

41

Office Building Business12. Competitive Edge of Marunouchi: Number of headquarters and offices(as of March, 2018)① Fortune Global 500 company headquarters③ Top 100 law firm headquarters and offices

29

MARUNOUCHI

16

MARUNOUCHI2SHINAGAWA

0NIHONBASHI

0SHIBUYA0NIHONBASHI0SHINAGAWA

0SHIBUYA0TORANOMON② Top 50 company headquarters in terms ofmarket capitalization

7

TORANOMON④ Foreign financial company offices

71

MARUNOUCHI

13

MARUNOUCHI

2

1

1

NIHONBASHITORANOMONSHINAGAWA

0SHIBUYANIHONBASHI

11SHIBUYA

3

SHINAGAWA

MITSUBISHI ESTATE CO., LTD.

25

TORANOMON

042

Office Building Business13. Marunouchi Data: Marunouchi Tenant Mix (Unconsolidated)
March 2000

Type of Business

Area ratio

March 2019

Type of Business

Area ratio

1

Manufacturing

42.5%

1

Manufacturing

23.9%

2

Finance22.2%

2

Finance

20.3%

3

Trading

10.4%

3

Professional Firm

17.0%

4

Information

6.3%

4

Trading

9.8%

5Professional Firm

4.4%

5

Information

4.0%

Others

14.2%

Others25.0%

Professional Firm
4.4%

Information
6.3%
Trading
10.4%

Manufacturing
42.5%

Manufacturing
23.9%

Information
4.0%
Trading
9.8%

Finance
22.2%

MITSUBISHI ESTATE CO., LTD.

Others25.0%

Others
14.2%

Finance
20.3%

Professional Firm
17.0%

43

Office Building Business

14. Marunouchi Data: Retail Property in Marunouchi:
Number of Stores / Store Floor Area(Unconsolidated)(Thousand ㎡)

140
Store Floor Area

Shin-Marunouchi
Bldg.

Number of Stores

120

790
Tokyo Bldg.
“TOKIA”

100

740
110

820
113

OTEMACHIFINANCIAL CITY
GRAND CUBE

850
116

Marunouchi
Nijyubashi Bldg.
“Nijyubashi
Square”

Marunouchi Bldg.

80

480
Before opening of
Marunouchi
Building

430(Store)

1,000
870

116

890

119

900
800
700

103
OAZO

60

Marunouchi
Park Bldg.

Marunouchi
Eiraku Bldg.
“iiyo!!”

Otemon Tower・
JX Building,Otemachi Park
Building“HOTORIA”

590

600

87
500

73
400

59
280

300

40
40

200

20
100
0

0
beforeSep. 2002

MITSUBISHI ESTATE CO., LTD.

Sep. 2002

Sep. 2004

Nov. 2005

Apr. 2007

Sep. 2009

Mar. 2012

May 2016

Feb. 2017

Nov. 201844

Office Building Business

15. Marunouchi Data: Approaches for Marunouchi Area Development
Improvement of floor-area-ratio
Improving floor-area-ratio in Marunouchi area by reviewing theuse area

1,000% → 1,300% (June, 2004)※1,200% for limited areas

Transfer of floor-area-ratio:
Exceptional floor-area ratio district system
Possible to transfer floor area among several areas meeting acertain conditions“Exceptional floor-arearatio district” Area

Relaxation of floor-area ratio regulation:
Special Urban Renaissance Districts
Possible to be permitted for relaxation of floor-area ratio
regulation depending on levels of contribution to city
regeneration as an exception of urban planning
Example: International business bases (Global Business Hub Tokyo etc.)
Development of fine urban environment (improvement on water quality ofditch around the Imperial Palace etc.)
BCP function(self-reliant of electric power and water supply, etc.)

Change of building uses:
Consolidation of non-office use
Possible to consolidate and allocate mandated non-officeuse floor-areas when running several projects
simultaneously◆Example: Consolidation between offices and hotels
Non-office ─◆Example: Transfer unused floor-area at Tokyo station to other buildings
around the station

Office ─Consolidate non-office uses in
offices into hotels to expand
office areas in office buildings
Offices
MITSUBISHI ESTATE CO., LTD.

Hotels45

Lifestyle Property Business

MITSUBISHI ESTATE CO., LTD.

46

Lifestyle Property Business1. PREMIUM OUTLET®

KYOTO JOYO
Tosu

Kobe-Sanda
Rinku

GOTEMBA PREMIUM OUTLETS®

Toki

RINKU PREMIUM OUTLETS®
Total Floor Area

Store Floor Area Number of Stores

Sendai-Izumi

HANAZONO Sano
Ami
Gotemba Shisui

Name

Location

Site Area

Schedule

GOTEMBA PREMIUM OUTLETS®

Gotemba, Shizuoka

422,300㎡*

69,200㎡*

60,000㎡*

300*

Open: Jul. 2000, Phase2 expansion: Jul. 2003, Phase3 expansion: Mar. 2008,
Phase4 expansion: land development and Construction begins in Sep. 2016,
Phase4 expansion: Spring 2020

RINKU PREMIUM OUTLETS®

Izumisano, Osaka

132,200㎡*

63,800㎡*

50,000㎡*

270*

Open: Nov. 2000, Phase2 expansion: Mar. 2002, Phase3 expansion: Dec. 2004,
Phase4 expansion: Jul. 2012, Phase5 expansion: 2020

SANO PREMIUM OUTLETS®

Sano, Tochigi

174,600㎡

39,900㎡

37,300㎡

170

Open: Mar. 2003, Phase2 expansion: Jul. 2004, Phase3 expansion: Mar. 2006,
Phase4 expansion: Jul. 2008

TOSU PREMIUM OUTLETS®

Tosu, Saga

134,200㎡

36,800㎡*

31,800㎡*

165*

Open: Mar. 2004, Phase2 expansion: Dec. 2007, Phase3 expansion: Jul. 2011,
Phase4 expansion: Fall 2019

TOKI PREMIUM OUTLETS®

Toki, Gifu

284,600㎡

41,300㎡

35,200㎡

180

Open: Mar. 2005, Phase2 expansion: Oct. 2006, Phase3 expansion: Jul. 2010,
Phase4 expansion: Nov. 2014

KOBE-SANDA PREMIUM OUTLETS®

Kobe, Hyogo

316,800㎡

49,600㎡

42,200㎡

210

Open: Jul. 2007, Phase2 expansion: Dec. 2009, Phase3 expansion: Dec. 2012

SENDAI-IZUMI PREMIUM OUTLETS®

Sendai, Miyagi

43,700㎡

20,300㎡

15,300㎡

80

Open: Oct. 2008

AMI PREMIUM OUTLETS®

Inashiki, Ibaraki

211,100㎡

34,800㎡

30,700㎡

150

Open: Jul. 2009, Phase2 expansion in Dec. 2011

SHISUI PREMIUM OUTLETS®

Inba, Chiba

421,000㎡

47,300㎡

41,900㎡

210

Open: Apr. 2013, Phase2 expansion: Apr. 2015,
Phase3 expansion: Construction begins in Oct. 2017, Phase3 expansion: Sep. 2018

HANAZONO PREMIUM OUTLETS® Project

Fukaya, Saitama

176,000㎡---

Open: after FY2021

KYOTO JOYO PREMIUM OUTLETS® Project

Joyo, Kyoto

270,000㎡---

Open: after FY2023*Planned figure after expansion

MITSUBISHI ESTATE CO., LTD.

47

Lifestyle Property Business2. Mitsubishi Estate・Simon Co., Ltd.
Business Activities : Management and operation of PREMIUM OUTLET®
Shareholders : Mitsubishi Estate 60%, Simon Property Group, Inc. 40%
Change in Business Results :FY2016FY2017FY2018Millions of yen (rounded down)

FY2019FY2020(E)Revenue fromOperations

43,946

43,642

45,462

46,65947,691

Operating Income

16,301

17,35918,94019,673

19,433

Income before
Taxes and Special
Items

16,521

17,593

19,211

19,952

19,469Net Income

10,69912,084

13,143

13,572

13,199Total assets

101,802

101,767

109,485

108,913116,256

Shareholders’ equity

34,576

38,642

42,72440,43843,372Average of all facilities
Sales-linked & fixed ratio(Rent revenue basis)◇Changes in store area(㎡)and number of stores
Store area(㎡)Number of Stores(Millions of yen)

FY2016FY2017FY2018FY2019308,500

308,500

308,500

314,600

318,200

1,527

1,529

1,540

1,570

1,590

(Millions of yen)

Revenue from Operations
45,00040,00035,00030,00025,000

MITSUBISHI ESTATE CO., LTD.

14,0009,000
4,000

Sales-Linked
Rent

Fixed Rent

50%

FY2020(E)FY2019(Millions of yen)

Operating Income
19,00050%

120,000

Total Assets

110,000
100,000

90,00080,00070,00048

Lifestyle Property Business

3. Pipeline
Corowa Koshien

MARK IS Fukuoka Momochi

Retail Property

M’s CROSS Omotesando

Number of Stores:2
Open: Sep. 2017

Logistics Facility

FY2018

Number of Stores:63
Open: Apr. 2018

FY2019Number of Stores:163
Open: Nov. 2018

FY2020

FY2021

LOGIPORT
Osaka Taisho

Logicross
Nagoya Kasadera

LOGIPORT Kawasaki Bay

Total Floor Area: 122,000㎡
Completion: Mar. 2018

Total Floor Area: 80,600㎡
Completion: Jan. 2019

Total Floor Area: 296,800㎡
Completion: May 2019

Logicross Narashino

Osaka Nishi-Yodogawa
Logistics Center

Logicross Yokohama
Kohoku Project

Total Floor Area: 39,100㎡
Completion: Mar. 2018

Total Floor Area: 38,300㎡
Completion: Sep. 2018

Total Floor Area: 16,000㎡ Total Floor Area: 34,700㎡
Completion: Jun. 2019
Completion: Jul. 2019

MITSUBISHI ESTATE CO., LTD.

Logicross AtsugiⅡ
Project

FY2022
Saito Moegi
Logistics Facility Project

Total Floor Area: 157,000㎡(2 Blocks)
Block B Completion: FY2021
Block A Completion: FY2022

49

Lifestyle Property Business

4. Logistics Facility BusinessTokyo Ryutsu Center Distribution B Building

Logicross Narashino

Name

Location

Tokyo Ryutsu Center Distribution B Building

Ota, Tokyo

Logicross Narashino

Logicross Nagoya Kasadera
Site Area

Total Floor Area

Logicross Yokohama Kohoku
Construction Start Date

Completion Date-

171,300㎡-

Jun. 2017

Narashino, Chiba

19,300㎡

39,100㎡-

Mar. 2018

Osaka Nishi-Yodogawa Logistics Center

Osaka, Osaka

18,100㎡

38,300㎡

Jul. 2017

Sep. 2018

Logicross Nagoya Kasadera

Nagoya, Aichi

33,200㎡

80,600㎡

Sep. 2017

Jan. 2019

LOGIPORT Kawasaki Bay

Kawasaki, Kanagawa

134,800㎡

296,800㎡

Dec. 2017

May 2019

Logicross Yokohama Kohoku

Atsugi, Kanagawa

8,000㎡

16,000㎡

Jun. 2018

Jun. 2019

Logicross AtsugiⅡ

Atsugi, Kanagawa

17,300㎡

34,700㎡

Aug. 2018

Jul. 2019

Saito Moegi Logistics Facility Project B District

Ibaraki, Osaka

15,800㎡

31,700㎡

FY2019FY2020

Saito Moegi Logistics Facility Project A District

Ibaraki, Osaka

51,000㎡

125,300㎡

FY2019FY2021

MITSUBISHI ESTATE CO., LTD.

50

Residential Business

MITSUBISHI ESTATE CO., LTD.

51

Residential Business1. Condominium Business Data

FY2018(Results)

FY2019(Results)

FY2020(Estimates)

Condominiums Sold(millions of yen)

254,140

238,924

208,000

Condominiums Sold
(units)

3,938

4,007

3,300

Land Bank
Breakdown in reporting term(as of March, 2019)

5,000

9,600
Gross margin

Inventory (units)

19.7%

17.0%

17.2%

460

542

-

3,600

Total: 18,200 units
New Supply of
Condominiums(units)MITSUBISHI ESTATE CO., LTD.

3,615

3,966

3,400

FY2020 - FY2022
FY2023 - FY2025
FY2026 -52

Residential Business

2. Condominium Business Data②
Quarterly Distribution of Sales by Agreement Date
(Millions of yen)

254,140

260,000
240,000
220,000

238,924
215,762200,000

95.8%

180,000

89.3%

160,000

79.4%

96.5%

223,266
94.8%
88.7%
77.9%

89.3%

93.0%

80.7%

84.7%
73.1%

66.1%

140,000
120,000

60.6%

208,000 (E)

59.2%

63.0%

100,000

50.1%

80,00060,00040,00020,000
0
16/3

17/3

Full-year sales

MITSUBISHI ESTATE CO., LTD.

18/3

End of 3Q

End of 2Q

19/3

End of 1Q

20/3

Beginning of FY

53

Residential Business3. Condominium Market Data
Number of New Supply / Average Prices (the Greater Tokyo Area)(Unit)(Average price / Millions of yen)

120,000

60
58.71

100,000

50

80,00040

60,00030

40,00037,132 37,000 20

20,00010

001998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(E)
Number of new supply

Average priceSource: Real Estate Economic Institute Co., Ltd.

MITSUBISHI ESTATE CO., LTD.

54

Residential Business

4. Rental Apartment

Parkhabio Akasaka Tower

The Parkhabio Kiba

MITSUBISHI ESTATE CO., LTD.

Name

Location

Parkhabio Ebisu

Shibuya, Tokyo

Parkhabio Monzen Nakacho

Site Area

Total Units

Completion Date

700㎡

109

Oct. 2013

Koto, Tokyo

900㎡

129

Mar. 2014

Parkhabio Shibaura

Minato, Tokyo

700㎡

84

Dec. 2014

Parkhabio Iidabashi

Chiyoda, Tokyo

500㎡

113

Feb. 2015

Parkhabio Akasaka Tower

Minato, Tokyo

1,100㎡

212

Mar. 2015

Parkhabio Akihabara Est

Taito, Tokyo

400㎡

54

Mar. 2015

The Parkhabio Ueno Okachimachi

Taito, Tokyo

500㎡

72

Aug. 2016

The Parkhabio Shinagawa Togoshi

Shinagawa, Tokyo

300㎡

36

Nov. 2016

The Parkhabio Negishi 3-chome

Taito, Tokyo

500㎡

45

Jul. 2017

The Parkhabio Yokohama Kannai

Yokohama, Kanagawa

500㎡

85

Oct. 2017

The Parkhabio Sangen-jaya Terrace

Setagaya, Tokyo

900㎡

56

Nov. 2017

The Parkhabio Nihonbashi Kodenmacho

Chuo, Tokyo

200㎡

44

Nov. 2017

The Parkhabio Asakusa Komagata

Taito, Tokyo

300㎡

41

Dec. 2017

The Parkhabio Shinjuku

Shinjuku, Tokyo

2,200㎡

219

Feb. 2018

The Parkhabio Nihonbashi Hakozakicho

Chuo, Tokyo

400㎡

50

Feb. 2018

The Parkhabio Waseda

Shinjuku, Tokyo

900㎡

99

Mar. 2018

The Parkhabio Sugamo

Toshima, Tokyo

1,700㎡

188

May 2018

The Parkhabio Ebisu Place

Shibuya, Tokyo

800㎡

71

Sep. 2018

The Parkhabio Nishiyokohama

Yokohama, Kanagawa

400㎡

81

Nov. 2018

The Parkhabio Meguro Fort

Meguro, Tokyo

500㎡

27

Jan. 2019

The Parkhabio Kakinokizaka

Meguro, Tokyo

1,300㎡

49

Jan. 2019

The Parkhabio Kiba

Koto, Tokyo

1,700㎡

223

Feb. 2019

In addition to the listed above, there are approximately 20 projects under development

55

Residential Business

5. Redevelopment Project・Condominium Reconstruction Project
Redevelopment Project ・ Large-scale Development Project

Condominium Reconstruction Project

Scheduled
Delivery

Scheduled
Delivery

Location

Location

Project Name

Total Units

Project Name

Total Units

FY2020Chiba, Chiba

Makuhari Bay-Park Cross Tower & Residence

497

FY2020

Shibuya, Tokyo

The Parkhouse Ebisu

102

FY2020Mitaka, Tokyo

Gracia Tower Mitaka

184

FY2021

Shinjuku, Tokyo

The Parkhouse Waseda

115

FY2021

Shinagawa, Tokyo

Crevia Tower Oimachi THE RESIDENCE

136

FY2021

Fukuoka, Fukuoka

The Parkhouse Momochi

231

FY2021

Narashino, Chiba

Tsudanuma The Tower

759

FY2022

Minato, Tokyo

The Parkhouse Mita Tower

FY2021Adachi, Tokyo

Senju The Tower

180

FY2023 -The Greater Tokyo Area

FY2021

Atsugi, Kanagawa

The Parkhouse Hon-Atsugi Tower

160

FY2021

Kawaguchi, Saitama

The Parkhouse Kawaguchi Honcho

162

FY2021

Chiba, Chiba

Makuhari Bay Park Sky Grand Tower

826

FY2021

Kagoshima, Kagoshima

Kagoshima city Chuocho19・20 Redevelopment210

FY2022

Bunkyo, Tokyo

Park Court Bunkyo Koishikawa The Tower

580

FY2023Chuo, Tokyo

HARUMI FLAG

Total 10,200*2

FY2023 -19 Street Area Redevelopment, Togoshi 5chome、
The Greater Tokyo Area
Minami-Takasago Area Redevelopment, Urawa
Station Nishiguchi, etc.*1
Outside of the Greater
Tokyo Area

Total 2,900*2

C Street Area Redevelopment, Minatocho 3chome, etc. *1

111

Total 1,300

4,100*1 There are approx. 20 ongoing projects scheduled for delivery in FY 2023 onward*2 Total of several planned projectSenju The Tower

MITSUBISHI ESTATE CO., LTD.

56

Residential Business6. Overseas Residence
Name

Location

Site Area

Total Units

Completion Date

Weifeng・Dong Yue

ChangchunApprox. 130,000㎡

574

Dec. 2015

Zhuojin・Wandai(Parc Botanica)
Weifeng・Dongyu

ChengduApprox. 75,000㎡

3,4522019 (Scheduled)

ChangchunApprox. 179,000㎡ To be determined2020 (Scheduled)

Vanke・Nantong

Nantong

Approx. 98,000㎡

Approx. 1,100

2020 (Scheduled)

HaimenHaimenApprox. 91,000㎡

1,424

2021 (Scheduled)

Vanke・Wuxi

Wuxi

Approx. 81,800㎡

1,556

2020 (Scheduled)aspire Sathorn-Thapra

BangkokApprox. 8,500㎡

1,218

Nov. 2016

Life Pinklao

BangkokApprox. 8,000㎡

803

Nov. 2017

Life Asoke

BangkokApprox. 10,700㎡

1,642

Apr. 2018

RHYTHM Ekkamai

BangkokApprox. 3,000㎡

326

Oct. 2018

Life Sukhumvit 62

BangkokApprox. 4,300㎡

438Jan. 2020 (Scheduled)Life one WirelessBangkokApprox. 7,000㎡

1,344

Feb. 2020 (Scheduled)Life Ladprao

BangkokApprox. 11,000㎡

1,615Mar. 2020 (Scheduled)Life Asoke-Rama9

BangkokApprox. 14,000㎡

2,248

Oct. 2020 (Scheduled)Life Ladprao Valley

BangkokApprox. 9,000㎡

1,140Aug. 2021 (Scheduled)Life Asoke Hype

BangkokApprox. 8,100㎡

1,253

Jul. 2021 (Scheduled)

RHYTHM Ekkamai Estate

BangkokApprox. 3,500㎡

303

May 2021 (Scheduled)

Stonor 3

Kuala Lumpur

Approx. 5,900㎡

4002019 (Scheduled)

The Gems

Selangor

Approx. 40,000㎡

676

To be determined

Binh Duong Province

Approx. 7,900㎡

Approx. 560

2021 (Scheduled)

China

Vanke・Nantong

Life Ladprao Hype

Thailand

Malaysia

VietnamSora gardensⅡ
Australia
Melbourne Quarter

Melbourne

Approx. 4,400㎡

719

2020 (Scheduled)

Mastery

SydneyApprox. 16,900㎡

3742021 (Scheduled)

Mastery
MITSUBISHI ESTATE CO., LTD.

57

International Business

MITSUBISHI ESTATE CO., LTD.

58

International Business1. International Business Overview①Total assets by area
Total Assets of Major Overseas Subsidiaries
Main Location

At Dec. 31, 2018 *1,2,3

Currency Exchange Rate

Rockefeller Group, Inc.

USA

410,801 millions of yen￥ / $(BS)110.00Mitsubishi Estate London Limited.

UK

156,852 millions of yen￥ / ￡(BS)140.46

Mitsubishi Estate Asia Pte. Ltd. *4

Asia

139,194 millions of yen￥ / S$ (BS)81.00

*1 Before consolidation adjustments.
*2 Due to overseas subsidiaries closing
accounts in Dec., figures from
3 months previous are used.
*3 The Total Assets of Major Overseas
Subsidiaries includes those in theInternational Business and the Investment
Management Business.
*4 Including the equity investments directly
made by Mitsubishi Estate.

②Strategy
・We analyze each market, and screen the “suitable place” where we can earn appropriate profits.
・We will continue to expand our international business with strategies of “suitable place, suitable resources” while developing diverse approaches according to
the characteristics of the targeted markets and the necessary management resources.

The United States

EuropeAsia

Strengths andCompetitiveness・Sourcing ability, market accessibility,
development capability based on long termbusiness achievements
・Asset management service by TA Realty

・Sourcing ability based on long-term businessachievements
Utilizing development know-how based on・Development Team composition /domestic business experiencemanagement ability
・Asset management service by Europa Capital

Approach・Hands-on development led by Rockefeller
Group・Hybrid model investment using TA Realty's
resources

・Development focusing on asset manager
model-type development

MITSUBISHI ESTATE CO., LTD.

・Expands mainly on partnership-type realestate development investments

59

International Business2. North America
Name

Location

Main Use

1271 Avenue of the Americas

New York, NewYork

Office・Retail1221 Avenue of the Americas

New York, NewYork

Office・Retail

Flushing Commons(Phase 1)

New York, NewYork

Rockefeller Group Logistics
Center(5 Bldg.)

Piscataway, New
JerseyLogistics

Boro Tower

Tysons, Virginia

Liv North Valley

Phoenix, Arizona

Site Area(㎡) Leasable Area(㎡) Floors* / Units

8,950

195,000

10,000244,000

11,000-

Office for sale
Residence

48/3
51/5

Completion Date

Completion in 1959
Renovation
completion in 2019NORTH AMERICA
Rockefeller Group International, Inc.
Mitsubishi Estate New York Inc.

1972

13/1

Retail148

New York

2017

17/1

Los Angeles

191,000-

Office・Retail

16,70041,00020/4

Jan. 2019

Rental Apartment

100,000

30,000385

Apr. 2019

Liv Goodyear

Goodyear,Arizona

Rental Apartment

67,00027,000326

Dec. 2018

Tri City Industrial Complex

San Bernardino,
California

Logistics

76,00039,500-Sep. 2018

Optimus Logistics Center(2 Bldg.)

Perris, California

Logistics

277,000

134,000-

Sep. 2018

Mitsubishi Estate Group office
and its project locations
Major Project Locations* Floors(above ground / below ground)

Flushing Commons
MITSUBISHI ESTATE CO., LTD.

Boro Tower

Washington, D.C.

2019

1,692,000

Optimus Logistics Center

1221 Avenue of the Americas

1271 Avenue of the Americas

60

International Business

3. Europe
Name

Location

Main Use

Site Area(㎡) Leasable Area(㎡) Floors*

Completion Date

8,000

8/1

1930’sRenovated in
2003

-

1,500

9/1

1950

7,900

31,200

9/3

1960’s

3,460

53,000

51/3

2022

3,300

18,300

8/2

2003

Office・Retail

7,900

38,800

11/2

2010

Office・Retail

2,200

15,9009/2

2016

London, UK

Office・Retail

5,000

24,000

12/1

2019

46 Rue La Boétie

Paris, France

Office

580

2,400

9

1964
Renovated in
2008

Feringastrasse 10-12

Munich, Germany Office

12,00022,000

5/2

2003

Clive House

London, UK

Office145 Leadenhall Street

London, UK

Office・Retail

1 Victoria Street

London, UK

Office(Tentative Name) 8 Bishopsgate

London, UK

Office・Retail

Warwick Court

London, UK

Office・Retail

Central Saint Giles

London, UK

8 Finsbury Circus

London, UK

245 Hammersmith Road

1,800

EUROPE

Mitsubishi Estate London Limited

LondonParis

Munich* Floors(above ground / below ground)

Mitsubishi Estate Group office
and its project locations
Major Project Locations(Tentative Name) 8 Bishopsgate
MITSUBISHI ESTATE CO., LTD.

Central Saint Giles

8 Finsbury Circus

46 Rue La Boétie

Feringastrasse 10-1261International Business

4. Asia / Oceania
Name

Location

Main Use

Site Area(㎡) Leasable Area(㎡) Floors / Units

Completion Date

Residential Development Project
Shanghai City, China
in Shanghai

Residence・Retail85,000-1,400

Logistics Development Project inBeijing City, China
Beijing(5 Bldg.)

Logistics

107,200

-

-

2018

Township Development Projectin Chengdu

Chengdu City, China

Residence・Retail75,000

-

3,400

2019

Mixed Use Development inHangzhouHangzhou, China

Office13,900

-

22

2021

Phase 3 of Singapore-Hangzhou
Hangzhou, China
Science & Technology Park

Office52,500--2020

Taiwan Nangang Development
Project(4 Bldg.)

Taipei City, Taiwan

Office・Hotel ・Retail

67,000200,000*-

Grand Open in
Dec. 2015

Taiwan Yucheng Development
Project

Taipei City, Taiwan

Office・Residence

5,200

-

-

-

Taiwan Banqiao Residential
Project

New Taipei City,
TaiwanResidence

5,700

-

-

-

Yoma Central(4 Bldg.)

Yangon, Myanmar

Office・Residence・
Hotel・Serviced
Apartment・Retail40,000--2021

Riverbank Place

Ho Chi Minh, Vietnam Office25

Dec. 2014

3,200

9,900

ASIA･OCEANIA

Dec. 2017

CapitaSpring

Singapore

Office・Serviced
Apartment・Retail

6,100

93,400*51

2021

Daswin Project

Jakarta, Indonesia

Office16,00075,00041

2021

Melbourne Quarter East Tower

Melbourne, Australia

Residence

4,400

-

719

2020

Circular Quay Tower

Sydney, Australia

Office・Retail

4,600

-

-

2021

SuzhouChengduHangzhouMitsubishi Estate(Shanghai) Ltd.
Shanghai
Mitsubishi Estate Taiwan Ltd.

Taipei

YangonMEA Consultancy Vietnam Company Ltd.

Ho Chi Minh City

Singapore

Mitsubishi Estate Asia Pte. Ltd.

Jakarta

PT MEA Consultancy Indonesia* Total Floor Area

SydneyMelbourne

Mitsubishi Estate Group office
and its project locations
Mixed Use Development in Hangzhou
MITSUBISHI ESTATE CO., LTD.

Daswin Project

Yoma Central

Circular Quay Tower

Major Project Locations

62

Other business

MITSUBISHI ESTATE CO., LTD.

63

Other business1. Investment Management Business: Global Platform
Globally, we have combined assets under management of approximately JPY 3.1 trillion.

AuM Area Breakdown(Billions of Yen)

Asia & Oceania
40.0Europe350.0

JRE
1,020.0

Carry out marketing and research and establish funds worldwide
Overseas

Provide global opportunities to worldwide investors
Japan Real Estate AssetManagement Co., Ltd.

Group-wide
Synergy

Total:
approximately
JPY 3.1 trillion.

United States
1,000.0

Domestic

MJIA
700.0

Mitsubishi Jisho
Investment Advisors, Inc.
(End of FY2019)

Mitsubishi Estate Group’s network
for investment & development and management & services
MITSUBISHI ESTATE CO., LTD.

64

Other business2. Segment Change to Hotel & Airport Business Group
Existing Segment

From FY2019

Office Building Business

Office Building Business

Lifestyle Property
Business

Hotel Development Business

Lifestyle Property
Business

Residential Businesse.g.
・MJ Hotel Osaka Higashi Shinsaibashi
・Nishi Asakusa 3-chome Hotel Project

Residential Business

International Business

Consolidation of 4 businesses
with increasing inbound demandInternational Business

Hotel & Airport Business Group

Investment
Management Business

Hotel Operation Business

Investment
Management Business

Hotel Development BusinessArchitectural Design &Engineering Businesse.g.
・Yokohama Royal Park Hotel・The Royal Park Hotel Kyoto Sanjo

Hotel & Airport Business

Hotel Operation BusinessArchitectural Design &Engineering BusinessAirport Operation Business

Real Estate Services
Business

Development Business

Hotel Business
Real Estate Services
Business
Other BusinessAirport Operation Businesse.g.
・Takamatsu Airport
・Shimojishima Airport

Resort Hotel

Other BusinessResort Hotel
Development Business

MITSUBISHI ESTATE CO., LTD.

65

Investment / Financial Data etc.

MITSUBISHI ESTATE CO., LTD.

66

Investment / Financial Data etc.

1. Capital Investment
Major Breakdown of Capital Investment

Capital Investment / EBITDA(Billions of Yen)

(Billions of Yen)

350.0

350.0

309.0

300.0

275.3

250.0

2.8

275.3
27.6

51.6

289.5
2.4

11.8

285.0
7.1
13.0

2.7

25.1

93.4

150.0

40.1

6.5

17.2
15.2

12.1

100.0

104.9

50.0

33.0

22.1
36.0

38.4
6.5

36.9

15.9

126.1

9.0

4.0

279.7

300.0

275.3
252.0

275.3

320.6

324.0
309.0

285.0

250.0

74.7

58.6

26.4

21.0

79.0

30.9

200.0

6.5

8.0

302.4
289.5

16.8
21.3

96.3

200.0

42.0

150.0

17.0
25.0

100.0

68.4

80.0

FY2019FY2020(E)

0.0

50.0
0.0

FY2016FY2017FY2018

Office Building(MEC: New/Redevelopment)

Office Building(MEC: Refurbishment)

Office Building(Subsidiaries)

Lifestyle Property

Residential

International

Hotel & Airport

Special Purpose Vehicle

FY2016FY2017FY2018

Capital Investment

FY2019FY2020(E)

EBITDA

Other(including consolidated eliminations)

MITSUBISHI ESTATE CO., LTD.

67

Investment / Financial Data etc.

2. Special Purpose Vehicles: Investment Balance (Unconsolidated / Domestic)
Breakdown: Investment Balance (as of March, 2019)(Billions of Yen)

Interest bearing debt
96.8

Office Building
Business
313.9

Consolidated S.P.V.
130.5

Equity investment byother companies
82.4

S.P.V. Total Scale*1*2
381.8

Interest bearing debt
96.6
Office Building
Business
207.3

Equity investment by
Mitsubishi Estate
202.5
Lifestyle Property
Business
67.8

Lifestyle Property
Business
43.9

Equity investment byother companies
82.4

Unconsolidated
S.P.V. Scale
251.3

Equity investment by
Mitsubishi Estate
72.1*1 S.P.V. in which our stake is 20% or above*2 Please refer to FACTBOOK for the breakdown by segment

MITSUBISHI ESTATE CO., LTD.

68

Investment / Financial Data etc.

3. Net Interest-bearing debt/EBITDA Ratio(Billions of Yen)

(Times)2,500.0

10.0
9.0

2,000.0

7.7

7.5

7.4

7.3

6.7
7.1

7.0

7.0
6.9

6.7

1,500.0

8.0

6.0

6.1

1,000.0

1,878.6
1,753.6

2,153.6
1,978.6

2,194.8
2,019.8

2,140.2
1,965.2

2,400.0
2,225.0

5.0
4.0

3.0
500.0

2.0
1.0

0.0

0.0
FY2016FY2017Net Interest-bearing debt
Debt/EBITDA Ratio (right axis)

MITSUBISHI ESTATE CO., LTD.

FY2018FY2019FY2020(E)Net Interest-bearing debt
*after hybrid debt deductions
Debt/EBITDA Ratio (right axis)*after hybrid debt deductions
69

Investment / Financial Data etc.

4. Interest-Bearing Debt Breakdown(Billions of Yen)

3,000.0

95.0%

95.0%

96.1%

93.7%

96.4%

95.1%

93.4%

100%

95.4%

93.6%

90%
4.7

2,500.0
6.8

10.2

2,000.0

35.0

53.1%

7.2

1,000.0

1,292.9
1,065.4

28.0

5.6

64.1%
69.7%

4.5

100.0

73.2%

100.0
76.2%

60.1%
1,261.9

1,381.2

1,428.5

1,523.0

1,406.0

1,208.8

70%

50%
40%

1,072.3

30%
250.0

250.0

250.0

250.0

500.0
566.3

747.2

636.2

701.5

685.2

653.0

612.7

603.8

558.9

0.0

Total

80%

60%

54.0%

8.3

1,500.0

7.2

9.5

61.8%

61.7%

100.0

20%
10%
0%

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY20191,693.0

1,716.8

2,085.4

1,973.0

1,929.3

2,291.0

2,396.9

2,481.6

2,319.5

Subordinated loan

CP

Lease liability

Straight BondMITSUBISHI ESTATE CO., LTD.

Subordinated bondBank Loan

Fixed ratio

Long-term ratio

70

Investment / Financial Data etc.

5. Interest-bearing debt:
Procurement Interest rates / Duration of Bonds (Unconsolidated)(Year)

10

2.5%

9.47
9.04

9
8

8.38

8.23

1.92%

1.94%

8.89
8.22
7.71

1.93%

1.90%

1.88%

1.88%

7
6

1.65%

1.33%
1.25%

4
3

1.58%

1.55%

5.94

6.19

1.41%

1.38%

1.27%

1.05%

1.07%
0.96%

0.96%

0.95%

0.97%

0.87%

2

1.5%

1.32%
1.24%

1.05%

1.01%

2.0%

1.52%

1.40%

1.29%

0.99%

6.72

6.31
1.54%

1.42%

5

7.20

6.82
1.72%

1.66%

1.52%

7.52

0.72%

0.75%

0.70%
0.62%

1

0.61%

0.66%

0.92%

1.0%

0.71%

0

0.5%
FY2006

FY2007

FY2008Duration of Bonds

MITSUBISHI ESTATE CO., LTD.

FY2009FY2010FY2011FY2012

Bonds/Average interest

FY2013

FY2014FY2015FY2016

Bank Loans/Average interest

FY2017FY2018FY2019Total/Average interest

71

Investment / Financial Data etc.

6. GovernanceOutside Director

Company with Nominating Committee, etc.

• 7 out of 15 are outside directors• Consists of a nominating committee, audit committee,
and remuneration committee.
• Each committee has a majority of outside directors• All 3 committee chairs are outside directors

Executive Compensation Plans to Share Values with Shareholders【Composition of Incentive】
Basic Incentive
50％

Fixed Incentive

Short-term Incentive

Middle to Long-term Incentive

Single-year
Performance-based
Incentive

RS
PS
Incentive Incentive
12.5％
12.5％

25％

Fluctuated Incentive●Single-year Performance-based Incentive• Incentive: cash
• Calculation: Considers 4 KPIs(EBITDA・Operating Income・ROA・ROE) of the previous FY.
• Fluctuation range: 0％～200％●Restricted Stock Plan (RS* Incentive) *Restricted Stock• Incentive: stocks Lock-up Period: 3 years●New Long-term Performance-based Incentive Plan (PS * Incentive) *Phantom Stock• Incentive: cash
Performance Evaluation Period: 3 years• Calculation: fluctuation ratio based on the relative ranking of the Company’s total shareholder return among 5 (five) peer
companies* in the same industry and stock price’s increasing/decreasing rate
• Fluctuation range: 0％～500％*Nomura Real Estate Holdings, Inc., Tokyu Fudosan Holdings Corporation, Mitsui Fudosan Co., Ltd., Tokyo Tatemono Co., Ltd., and Sumitomo Realty & Development Co., Ltd

MITSUBISHI ESTATE CO., LTD.

72

Contact Information
Investor Relations Office,Corporate Communications Department
Mitsubishi Estate Co., LTD.
+81-3-3287-5200
http://www.mec.co.jp/<Disclaimer>
Regarding information on the properties of this material, it is based on judgment obtained from information available at thepresentation date of this material.

Please be aware that actual information can result in different results depending on various factors.

MITSUBISHI ESTATE CO., LTD.