Investor Presentation(3758KB)
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Investor Presentation May 2019 https://www.mitsuifudosan.co.jp/english/ Contents 1.About Mitsui Fudosan 1-1 Highlights P4 1-2 Mitsui Fudosan Group Long-Term Vision 【VISION 2025】 P7 1-3 Capital Policy P10 1-4 Portfolio Strategies P11 2.Core Businesses:Overview & Strengths 2-1 Leasing Business<Office Buildings, Retail Facilities, Others> P14 2-2 Property Sales Business P22 <Property Sales to Individuals, Property Sales to Investors> 2-3 Management Business P26 <Property Management, Brokerage, Asset Management, etc.) 2-4 (Appendix)Logistics Facility Business P28 2-5 (Appendix)Hotel and Resort Business P29 2-6 (Appendix)Global Business P31 3.Financial Statements(FY2018) 3-1 Summary of Results for the Year Ended March 31,2019 P35 3-2 Investment and Financial Data P38 4.Forecasts for the Year to March 2020 (FY2019) P41 5.Appendices(Market Trends) 5-1 Leasing Business Development Example P43 5-2 Market Trends/Leasing Business/Office Buildings P44 5-3 Market Trends/Leasing Business/Retail Facilities P47 5-4 Market Trends/Property Sales Business/To Individuals P48 5-5 Market Trends/Property Sales Business/To Investors P49 5-6 International Visitors to Japan P50 5-7 Shareholder Composition P51 5-8 Operating Income by Segment P52 Disclaimer P53 MITSUI FUDOSAN CO.,LTD 2 1.ABOUT MITSUI FUDOSAN 1-1.Highlights About Mitsui Fudosan Structure Revenue Other 5% Mitsui Home Leasing 14% 32% Revenue from Operations Management (For the Year ended March 31,2019) 20% 1,861.1 billions of yen Property Sales 29% Three Core Businesses and Breakdown of each Revenue As of March2019 Leasing Business Property Sales Business Management Business Leased Floor 4% Units Booked Asset Under Space (Condominiums) Management (Incl.Managed Properties) Office Buildings 27% 46% 3,283units 3.90Trillions yen 40% 3,148thousand ㎡ 54% 56% Retail Facilities 73% 2,193thousand ㎡ Property sales to individuals(Domestic) Property Management Office Buildings Retail Facilities Others Property sales to Investors and Individuals(Overseas) Brokerage,Asset management,etc. MITSUI FUDOSAN CO.,LTD 4 1-1.Highlights About Mitsui Fudosan Performance Highlights Mid-Term Business Plan Long-Term Vision (Billions of yen) Innovation 2017 Stage Ⅱ VISION 2025 300.0 Leasing Property sales Management Others(*1) 52.0 270.0 Profit Attributable to owners of parent(*2) 53.4 240.0 48.7 53.8 210.0 52.4 98.0 168.6 111.0 170.0 180.0 49.3 83.0 155.8 49.9 65.2 150.0 41.5 44.5 131.8 45.4 117.7 120.0 23.0 27.0 100.1 76.8 90.0 59.4 135.7 138.3 141.9 144.0 60.0 104.3 109.2 107.8 124.1 30.0 0.0 (30.0) (20.8) (13.6) (16.6) (18.6) (22.2) (24.1) (31.2) (40.0) 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 3/2019 3/2020(E) Operating income 148.1 172.5 186 202.4 232.6 245.9 262.1 267.0 (Billions of yen) Profit Attributable to Owners of parent 59.4 76.8 100.1 117.7 131.8 155.8 168.6 170.0 (Billions of yen) Depreciation 59 56 61.2 67.4 71.3 70.1 79 85 (Billions of yen) Cash dividends per 22 22 25 30 34 40 44 44 share (Yen) Payout ratio (%) 32.5 25.1 24.1 25.2 25.5 25.4 25.7 25.4 ROA(%) 3.7 4.1 4.1 4.1 4.6 4.6 4.4 - ROE(%) 5.3 6.3 6.4 6.2 6.8 7.4 7.4 - *1 Other include Mitsui Home, other segments and nonconsolidated general & administrative expenses. *2 Prior to FY2015: Net Income ・The figures of FY2012 or after reflect the effect of the SPC consolidation. ・ROA: (Operating income + Non-operating income) /Average total assets over period ・ ROE: Profit Attributable to owners of parent /Average shareholders‘ equity over period MITSUI FUDOSAN CO.,LTD 5 1-1.Highlights About Mitsui Fudosan Financial Highlights Trend of D/E ratio, etc. Interest-bearing debt(Left) Shareholders’ equity(Left) B/S as of March 31,2019 (Billions of Yen) Debt/Equity ratio (Right) (Billions of yen) (time) Real property for 3,500.0 1.80 3,300.0 2.00 sale (including 1.60 2,906.6 1.80 1,630.5 3,000.0 advances paid for Interest-bearing 2,604.6 2,906.6 1.60 purchases) debt 2,342.5 2,500.0 2,287.4 1.40 1,976.1 2,226.2 2,204.8 2,120.2 2,040.0 1,922.3 1,984.6 1,871.9 1.20 Tangible and 2,000.0 1.24 1.00 Intangible fixed 1.16 1.15 1.18 1,500.0 assets 3,500.4 1,181.1 1,274.3 1.06 0.80 Other 1,475.3 (Rental properties) (3,024.0) 1,000.0 0.60 0.40 500.0 0.20 Net assets 2,420.8 0.0 0.00 3/’13 3/’14 3/’15 3/’16 3/’17 3/’18 3/’19 3/’20(E) (Shareholders' equity) (2,342.5) Other 1,671.8 Market value of Rental Properties Assets 6,802.7 Debt and Equity 6,802.7 (Billions of yen) 5,773.6 6,000.0 Book Value Unrealized gain(Market Value-Book Value) 5,436.1 Rental Properties (Billions of Yen) 4,828.4 5,000.0 4,560.5 At March 31. At March 31. Change 4,054.3 2,749.6 2019 2018 4,000.0 2,475.4 3,472.6 2,183.3 Market Value 5,773.6 5,436.1 337.5 3,168.0 1,912.1 1,564.4 3,000.0 1,215.9 Book Value 3,024.0 2,960.7 63.3 920.4 2,000.0 Unrealized Gain 2,749.6 2,475.4 274.2 2,960.7 3,024.0 2,489.9 2,648.3 2,645.0 1,000.0 2,247.5 2,256.7 0.0 3/'13 3/'14 3/'15 3/'16 3/'17 3/'18 3/'19 MITSUI FUDOSAN CO.,LTD 6 1-3.Mitsui Fudosan Group Long-term Vision【VISION2025】 About Mitsui Fudosan ※Announced in May 2018 the MitAspirations for sui Fudosan Group MITSUI FUDOSAN CO.,LTD 7 1-3.Mitsui Fudosan Group Long-term Vision【VISION2025】 About Mitsui Fudosan ※Announced in May 2018 Basic Strategies Achieve Society 5.0 Contribute to the SDGs Establish a sustainable society Pursue common social value Drive sustainable profit growth グループ経営の進化 ▶ グループシナジーの強化 ▶ 海外も含めたグループ連携の推進 ▶ 外部連繋強化・オープンイノベーション実践 Main Initiatives Drive evolution Innovate business models Dramatically grow 海外事業の飛躍的な成長 in the creation of neighborhoods by harnessing real estate tech the overseas business Infrastructure to support initiatives Human resource strategies Organization, systems and governance Asset and financial strategy MITSUI FUDOSAN CO.,LTD 8 1-3.Mitsui Fudosan Group Long-term Vision【VISION2025】 About Mitsui Fudosan ※Announced in May 2018 OUTLOOK Around 2025 FY2018 FY2019 actual Forecasts released on May.10, 2019 Consolidated operating income Around ¥350 billion ¥262.1 billion ¥267 billion Of which:Overseas income Around 30% 19.8% - ROA Around 5% 4.4% - *Overseas income =Overseas OP+ Pro forma operating income of overseas affiliates (Calculated by multiplying the operating income or the amount equivalent to operating income of each overseas equity-method affiliated company by the Company’s equity interest) Note: The amount equivalent to operating income is the amount of profit calculated on a simplified basis after taking into consideration the tax burden. * ROA:(Operating income + Non-operating income) /Average total assets over period Shareholder Return Policy ▶ Mitsui Fudosan reinvests earnings to increase shareholder value over the medium to long term and returns profits to shareholders based on comprehensive consideration of such factors as the business environment and its performance and finances. ▶ In order to strengthen shareholder returns, Mitsui Fudosan undertakes the stable payment of dividends while also flexibly repurchasing its own shares in a bid to enhance capital efficiency. ▶ Mitsui Fudosan has identified a total shareholder return ratio of around 35% of profit attributable to owners of parent. MITSUI FUDOSAN CO.,LTD 9 1-4.Capital Policy About Mitsui Fudosan Basic Capital Policy ▶Undertaking the stable payment of dividends while flexibly repurchasing own shares: Total shareholder return ratio =Around 35% of profit attributable to owners of parent. Shareholder Return Enhancements Continuously Enhance Corporate Value, Increase Shareholder Value 【ROE Trends】 3/’12 3/’13 3/’14 3/’15 3/’16 3/’17 3/’18 3/’19 7.4% 7.4% 6.3% 6.4% 6.2% 6.8% 4.8% 5.3% Financial Investment for Growth and Building of Quality-Based Soundness Asset Portfolio ▶Management of financial leverage : ▶Building of quality-based asset portfolio: Ensuring of appropriate D/E ratio level ROA ≈ 5% level around 2025 【D/E Ratio Trends】 ▶Reinvestment of profits in good investment opportunities: (Time) 2.50 1.80 1.60 From NOI return point of view in Japan 2.00 1.06 1.16 1.15 1.18 1.24 1.50 1.00 Central Tokyo prime office buildings ≈5%, 0.50 0.00 Retail Facilities ≈8% (land holding), ≈12% (lease-land type) 3/’13 3/’14 3/’15 3/’16 3/’17 3/’18 3/’19 Targets set by project MITSUI FUDOSAN CO.,LTD 10 1-5.Portfolio Strategies About Mitsui Fudosan Operating Status A. Rental Properties B. Real Property for Sale Assets for Leasing Sources (assets) (tangible and intangible fixed assets) (for property sales to Investors) Business Total(A+B) that generate Book Value Book Value Book Value At March 31,2019 At March 31,2019 At March 31,2019 Rental Income ¥3,024.0 ¥993.3 ¥4,017.3 billion billion billion A.