Mitsui Fudosan : Financial Reporting Document

MITSUI FUDOSAN

FINANCIAL REPORT

Year ended March 31, 2023

MITSUI FUDOSAN

FINANCIAL REPORT

Year ended March 31, 2023

Contents
Consolidated Financial Statements	2
Notes to Consolidated Financial Statements	10
Independent Auditor's Report	62
Appendices	71
1.	History	71
2.	Mitsui Fudosan's Businesses	72
3.	Subsidiaries and Affiliated Companies	75
4.	Major Properties	79
5.	Strategic Shareholdings	85

Mitsui Fudosan Co., Ltd. 1

Consolidated Financial Statements

Consolidated Balance Sheets

Mitsui Fudosan Co., Ltd. and its Subsidiaries

As of March 31, 2023, 2022 and 2021

			Millions of yen
	2023	2022	2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 4)	¥132,311	¥142,682	¥187,724
Notes and accounts receivable - trade, and contract assets (Note 4,19)	71,221	61,465	-
Notes and accounts receivable - trade (Note 4)	-	-	41,368
Marketable securities (Note 4, 5)	132	100	88
Inventories (Note 8, 13)	2,159,675	2,047,991	1,938,599
Advances paid for purchases (Note 9)	23,855	22,290	15,845
Short-term loans receivable	16,891	16,950	17,187
Equity investments in properties for sale (Note 4)	9,775	9,803	10,013
Other current assets	334,380	267,401	245,747
Allowance for doubtful accounts	(731)	(811)	(574)
Total current assets	2,747,509	2,567,871	2,455,997
PROPERTY and EQUIPMENT, at cost:
Buildings and structures (Note 7, 13, 24)	2,700,021	2,347,362	2,166,327
Machinery and equipment (Note 24)	468,972	335,172	303,244
Land (Note 7, 13)	2,219,068	2,081,491	2,099,946
Construction in progress	102,781	252,516	249,386
	5,490,842	5,016,541	4,818,903
Accumulated depreciation	(1,236,049)	(1,140,600)	(1,060,784)
Net property and equipment (Note 25)	4,254,793	3,875,941	3,758,119
INVESTMENTS and OTHER ASSETS
Investments in unconsolidated subsidiaries and affiliated companies	443,387	335,283	273,233
Investment securities (Note 4, 5)	814,738	881,726	775,852
Non-current loans	8,939	8,302	8,858
Lease deposits (Note 4, 10)	172,291	170,859	160,944
Net defined benefit asset (Note 12)	64,757	65,082	50,677
Deferred income taxes (Note 11)	25,762	25,574	26,587
Deferred tax assets on land revaluation	699	15	3
Other	309,666	278,423	232,902
Allowance for doubtful accounts	(1,144)	(1,064)	(1,199)
Total investments and other assets	1,839,095	1,764,200	1,527,857
Total assets	¥8,841,397	¥8,208,012	¥7,741,973

See accompanying notes.

Mitsui Fudosan Co., Ltd. 2

			Millions of yen
	2023	2022	2021
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Notes and accounts payable - trade (Note 4)	¥147,986	¥135,098	¥97,970
Bank loans (Note 4, 13)	153,290	125,045	39,213
Commercial paper (Note 4, 13)	78,000	36,000	99,500
Long-term debt due within one year (Note 4, 13)	571,627	480,554	324,326
Accrued expenses	73,030	58,306	53,683
Accrued income taxes	41,629	59,591	50,340
Advances and deposits received	134,195	117,650	231,528
Contract liabilities (Note 19)	178,190	141,892	-
Other current liabilities (Note 13, 14)	123,895	122,944	104,607
Total current liabilities	1,501,842	1,277,080	1,001,167
LONG-TERM LIABILITIES
Net defined benefit liability (Note 12)	45,673	49,866	48,067
Allowance for directors' and corporate auditors' retirement benefits	800	775	846
Long-term debt due after one year (Note 4, 13)	3,245,615	3,025,635	3,160,400
Deposits from tenants (Note 4, 13, 15)	456,583	443,920	435,930
Deferred income taxes (Note 11)	286,734	299,398	269,234
Deferred tax liabilities on land revaluation	91,088	91,088	94,836
Other long-term liabilities (Note 14)	181,841	106,497	75,501
Total long-term liabilities	4,308,334	4,017,179	4,084,814
CONTINGENT LIABILITIES (Note 27)
NET ASSETS (Notes 16, 17)
Shareholders' equity
Common stock	340,553	340,163	339,897
Authorized - 3,290,000,000 shares
Issued-948,451,327 shares in 2023, 959,474,447 shares in 2022
and 965,281,777 shares in 2021
Capital surplus	366,604	372,472	372,294
Retained earnings	1,499,572	1,390,511	1,259,716
Treasury stock - 14,951,532 shares in 2023, 8,973,356 shares in
2022 and 3,128,170 shares in 2021	(38,354)	(21,582)	(5,920)
Total shareholders' equity	2,168,375	2,081,564	1,965,987
Accumulated other comprehensive income (loss)
Net unrealized holding gains on securities	426,950	471,795	394,874
Deferred gains on hedging instruments	16,073	10,303	5,165
Reserve on land revaluation	194,901	194,160	202,687
Foreign currency translation adjustments	67,710	10,430	(34,525)
Accumulated adjustments for retirement benefit	26,718	28,223	21,698
Total accumulated other comprehensive income	732,352	714,911	589,899
Subscription rights to shares (Note 18)	1,291	1,340	1,423
Non-controlling interests	129,203	115,938	98,683
Total net assets	3,031,221	2,913,753	2,655,992
Total liabilities and net assets	¥8,841,397	¥8,208,012	¥7,741,973

See accompanying notes.

Mitsui Fudosan Co., Ltd. 3

Consolidated Statements of Income

Mitsui Fudosan Co., Ltd. and its Subsidiaries

For the years ended March 31, 2023, 2022 and 2021

			Millions of yen
	2023	2022	2021
Revenue from operations (Note 19, 25)	¥2,269,103	¥2,100,870	¥2,007,555
Cost of revenue from operations	(1,742,425)	(1,650,428)	(1,609,639)
Selling, general and administrative expenses	(221,273)	(205,463)	(194,145)
Operating income (Note 25)	305,405	244,979	203,771
Interest, dividends and miscellaneous income (Note 21)	60,278	75,219	88,761
Interest expense	(55,458)	(31,606)	(27,779)
Other expenses (Note 20, 22)	(21,619)	(28,349)	(66,774)
Equity in net income (loss) of affiliated companies	7,325	2,161	(6,158)
Income before income taxes	295,931	262,404	191,821
Income taxes (Note 11)
Current	90,792	101,362	89,147
Deferred	1,765	(14,713)	(27,054)
Total income taxes	92,557	86,649	62,093
Net income	203,374	175,755	129,728
Net (income) loss attributable to non-controlling interests	(6,375)	1,231	(152)
Net income attributable to shareholders of the Company	¥196,999	¥176,986	¥129,576

See accompanying notes.

Mitsui Fudosan Co., Ltd. 4