Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q3 FY2023 Earnings Presentation
98 slides from Tokyu Fudosan's earnings presentation, February 2024
Slide 1: Financial Highlights FY2023 Third Quarter (First Nine Months)
Securities Code: 3289 Create Value for the Future Financial Highlights FY2023 Third Quarter (First Nine Months) Ended December 31, 2023
Slide 2: Forward-looking statements notice
The forecasts and other forward-looking statements in this report are based on currently available information and certain assumptions determined as rational. Consequently, any statements herein do not constitute assurances regarding actual results by the Group. Actual performance may significantly
Slide 3: Contents
｜ Contents ｜ ・ Progress of Medium-Term Management Plan and ・・・・・ 4 Initiatives to Enhance Corporate Value ・Summary of the FY2023 Third Quarter (First Nine Months) Ended December 31, 2023 ・・・・・ 12 ・ Segment Overview ・・・・・ 26 ・ Co-Creation with Partners initiatives initiatives ・・・・・ 52 ・ Sustainabilit
Slide 4: Progress of Medium-Term Management Plan and Initiatives to Enhance Corporate Value
Progress of Medium-Term Management Plan and Initiatives to Enhance Corporate Value © TOKYU FUDOSAN HOLDINGS CORPORATION 4
Slide 5: Progress of Medium-Term Management Plan (Financial Targets)
Reprint of the FY2023 Second Quarter (First ｜ Progress of Medium-Term Management Plan (Financial Targets) ｜ Six Months) Ended September 30, 2023 All target financial indicators are steadily improving. FY2021 FY2022 Initial forecast Latest forecast FY2025 (Result) (Result) for FY2023 for FY2023 (Targ
Slide 6: Social Issues to Address During the Next Medium-Term Period
Reprint of the FY2023 Second Quarter (First ｜ Social Issues to Address During the Next Medium-Term Period ｜ Six Months) Ended September 30, 2023 To produce differentiated value, we’ll engage in supporting urban international competitiveness and regional economies (regional revitalization) Megatrends
Slide 7: Changes in Share Price, etc.
｜ Changes in Share Price, etc. (2019.10.1～2024.2.7) ｜ 1,200yen 9.0% Share price BPS FY2023 (Forecast) ROE Forecast ROE ROE 8.9% 1,100yen BPS：1,034.65yen 8.0% 1,000yen Share price on FY2022 7.3% Feb.7: ¥995.0 900yen 7.0% FY2019 6.7% 800yen 6.0% FY2021 5.7% 700yen 600yen 5.0% 500yen 4.0% FY2020 3.7% 4
Slide 8: Initiatives to enhance corporate value and market valuation
Reprint of the FY2023 Second ｜ Initiatives to enhance corporate value and market valuation ｜ Quarter (First Six Months) Ended September 30, 2023 Improve corporate value and market valuation by promoting and achieving the long-term management policy and the mid-term management plan 2025. PBR↑ ＝ ROE↑
Slide 9: Progress in business portfolio management①
Reprint of the FY2023 Second Quarter (First ｜ Progress in business portfolio management① ｜ Six Months) Ended September 30, 2023 Completed structural reforms of businesses that were positioned as requiring radical restructuring, and moved into a new phase of business structural reforms. Asset-utilizi
Slide 10: Progress in business portfolio management②
Reprint of the FY2023 Second Quarter (First ｜ Progress in business portfolio management② ｜ Six Months) Ended September 30, 2023 In the businesses that we have positioned as “Revise and advance," we will continue to aim for transformation and growth in each business, with a focus on improving efficie
Slide 11: Progress in business portfolio management③
Reprint of the FY2023 Second Quarter (First ｜ Progress in business portfolio management③ ｜ Six Months) Ended September 30, 2023 Conducted structural reforms intensively in FY2021 and FY2022, focusing on fundamental restructuring businesses. under the influence of Covid-19 [Yen] 8.9% 9.0% 80 EPS ROE（
Slide 12: Summary of the FY2023 Third Quarter (First Nine Months)
Summary of the FY2023 Third Quarter (First Nine Months) Ended December 31, 2023 © TOKYU FUDOSAN HOLDINGS CORPORATION 12
Slide 13: Highlights
｜ Highlights ｜ Topics Contents Operating profit: 75.4 billion yen (+13.4 billion yen YoY) Net profit* 45.5 billion yen (+14.5 billion yen YoY) Financial results for the Q3 under Both revenues and profit increased YoY due to strong performance in asset review sales and brokerage and outstanding perfo
Slide 14: FY2023 Major business environment
Reprint of the FY2023 Second ｜ FY2023 Major business environment ｜ Quarter (First Six Months) Ended September 30, 2023 Progress in Condominiums, Hotels, Real estate agents businesses, and asset sales exceeded expectations at the time the mid-term management plan was formulated. Topics Contents No ma
Slide 15: FY2023 Q3 Operating Results, major index
｜ FY2023 Q3 (First nine months) Operating Results, major index ｜ Both revenues and profit increased YoY FY2022 FY2023 FY2023 （¥ billion） Comparison FY2022 Progress note Q3 Q3 Forecast** Operating Revenue 641.7 717.8 76.1 1,005.8 1,120.0 64.1% Operating profit 62.0 75.4 13.4 110.4 115.0 65.5% □Extrao
Slide 16: FY2023 Q3 Segment performance
｜ FY2023 Q3 (First nine months) Segment performance ｜ The real estate trading market remained active, with approximately 80% of the gross profit from asset sales forecast for FY2023 already sold or contracted. FY2022 FY2023 FY2023 （¥ billion） Comparison FY2022 Comparison note Q3 Q3 Forecast Operatin
Slide 17: FY2023 Q3 Analysis of segment performance
｜ FY2023 Q3 (First nine months) Analysis of segment performance ｜ 13.4 billion yen increase YoY, due to strong asset sales and brokerage sales, recovery in wellness business, etc. ・ Increase in real estate agent sales due to ・ Property Management business +1.3 billion yen active real estate transact
Slide 18: FY2023 Earnings forecasts and analysis of segment performance
Reprint of the FY2023 ｜ FY2023 Earnings forecasts and analysis of segment performance Second Quarter (First (No change since the November announcement) ｜ Six Months) Ended September 30, 2023 Plan to increase profit by 4.6 billion yen YoY due to increase in Real estate agents business and recovery in
Slide 19: FY2023 Q3 Summary of balance sheets
｜ FY2023 Q3 (First nine months) Summary of balance sheets ｜ Land and buildings for sale increased due to the transfer from a portion of fixed assets of Shibuya Sakura Stage. FY2022 FY2023 FY2022 FY2023 （¥ billion） Comparison （¥ billion） Comparison Mar-31, 2023 Dec-31, 2023 Mar-31, 2023 Dec-31, 2023
Slide 20: Asset Breakdown by Segment and ROA Trends
｜ Results for the First Six Months of FY2023: Asset Breakdown by Reprint of the FY2023 Second Quarter (First Segment and ROA Trends ｜ Six Months) Ended September 30, 2023 Progress in investments has led to an increase in land and buildings for sale in Urban development and Strategic investments busi
Slide 21: Market value appraisal for leased properties
Reprint of the FY2023 ｜ Market value appraisal for leased properties Ended March 31, 2023 (as of the end of Mar. 2023) ｜ Unrealized profit of leased properties increased FY2021 FY2022 （¥ billion） Comparison Remarks Mar-2022 Mar-2023 Carrying Value 764.0 732.6 (31.4) □Market value at the end of the f
Slide 22: Summary of Cash flow and Investment plan
｜ Summary of Cash flow and Investment plan Reprint of the FY2023 Second Quarter (First (No change since the November announcement) ｜ Six Months) Ended September 30, 2023 Capital investment will be made mainly in Shibuya Sakura Stage and renewable energy facilities, and in rental housing and logistic
Slide 23: Gross profit on sales and land and buildings for sale by assets
｜ Gross profit on sales and land and buildings for sale by assets ｜ Promoting efficient asset turnover and profit generation against the backdrop of favorable trading market conditions. We’ll actively sell off assets, including asset turnover. 〈Land and Buildings for Sale by 〈Gross Profit from Asset
Slide 24: Financial Condition
｜ Financial Condition ｜ Long-term ratio of interest-bearing debt at the end of FY2022 was 95.9%, and the fixed ratio was 95.3%. Japan Credit Rating Agency, Ltd. (JCR) revised its long-term issuer rating outlook from A (Stable) to A (Positive). Equity Interest-bearing Debt D/E ratio Debt/EBITDA ratio
Slide 25: Shareholder Return
Reprint of the FY2023 Second Quarter (First ｜ Shareholder Return ｜ Six Months) Ended September 30, 2023 ROE of 8.9% and annual dividend of ¥28.0 per share (up ¥4.5 from the previous fiscal year) are planned for FY2023. Shareholder return policy: Payout ratio of 30% or more and maintain stable divide
Slide 26: Segment Overview
Segment Overview © TOKYU FUDOSAN HOLDINGS CORPORATION 26
Slide 27: Urban Development (Asset-utilizing business)
｜Urban Development (Asset-utilizing business) ｜ This segment creates attractive urban living environments. Urban Development Urban Development (Offices and Residential Commercial Facilities) Business environment of focus Acceleration of decarbonization, Acceleration of Financial and Diversification
Slide 28: Urban Development ① FY2023 Q3
｜ Urban Development ① FY2023 Q3 (First Nine Months) ｜ While the number of condominiums recorded in the residential business decreased, both revenues and profit increased YoY thanks to increased sales of assets in the urban development business and residential business. FY2022 FY2023 〈Breakdown of re
Slide 29: Urban Development ② Vacancy Rate and Rent trends
｜ Urban Development ② Vacancy Rate and Rent trends and Portfolio Characteristics ｜ 〈Office Area〉 As of December 31, 2023, vacancy rate remains low at 5.7 % (office buildings and commercial Metropolitan 4 districts facilities), and average office rent at 29,560 yen (month/tsubo) 831 thousand m2 (95%)
Slide 30: Urban Development ③ Major projects
｜ Urban Development ③ Major projects (Offices/Commercial facilities, etc.) ｜ 【Other projects】 Chayamachi B-2/B-3 Blocks Redevelopment Project Osaka Commercial/office/accommo dation etc. Total floor space: 31 Scheduled for completion in FY2028 Project for Using Land at Tokyo Institute of Technology’s
Slide 31: Urban Development ④ Major projects (Greater Shibuya area)
｜ Urban Development ④ Major projects (the Greater Shibuya area) ｜ After the completion of Shibuya Sakura Stage, several projects remain underway in the Greater Shibuya area, including Next Shibuya Sakuragaoka and Jinnan 1-chome. The Greater Redevelopment Project Commercial facility Shibuya area Offi
Slide 32: Urban Development ⑤ Shibuya Sakura Stage
｜ Urban Development ⑤ Major project ～Shibuya Sakura Stage～ ｜ Combined facility for work, living, and play will open sequentially from December 2023. ◆Office ◆Commercial Facility ◆Residence ◆Extended stay hotel Advanced office floor Commercial facilities BRANZ Shibuya Sakuragaoka Hyatt House Tokyo Sh
Slide 33: Urban Development ⑥ Upgrading the Greater Shibuya Area
｜ Urban Development ⑥ Upgrading the Greater Shibuya Area ｜ We add value to the Greater Shibuya area by delivering robust area management and digital infrastructure and creating a cycle of creation, dissemination, and accumulation. Dissemination Enhancing dissemination potential ■Mediatization of the
Slide 34: Urban Development ⑦ Sale of partial interest in Shibuya Sakura Stage
｜ Urban Development ⑦ Decision to sell a partial interest in Shibuya Sakura Stage ｜ As part of the "Co-Creation with Partners" business policy, decided to sell the equivalent of a49% co-ownership interest in the sectional ownership of Shibuya Sakura Stage SHIBUYA Tower <Overview of Sale> SHIBUYA Sid
Slide 35: Urban Development ⑧ Condominium index
｜ Urban Development ⑧ Condominium index ｜ As of the third quarter of FY2023, the contract securing rate has progressed to 102% of the forecast 〈Major upcoming projects〉 Delivery Accounting year FY2021 FY2022 FY2023 Forecast Name Units* begins No. of units sold 2,194 1,369 1,271（Q3：364） FY2024 The To
Slide 36: Urban Development ⑨ Major Large-Scale Residential Projects
｜ Urban Development ⑨ Major Large-Scale Residential Projects ｜ BRANZ TOWER Osaka THE TOWER JUJO HARUMI FLAG SKY DUO Kitanakadori North District Higashigotanda 2-3 Sengakuji Station District Nishi-Nippori Station Honmachi Address: Kita-ku, Tokyo (Skyscrapers) B-1 Redevelopment Redevelopment District
Slide 37: Strategic Investment (Asset-utilizing business)
｜ Strategic Investment (Asset-utilizing business) ｜ This segment develops infrastructure for the next generation. Infrastructure and Investment Strategic investment industry management Overseas operation Business environment of focus Acceleration of decarbonization, Acceleration of Financial and Div
Slide 38: Strategic Investment ① FY2023 Q3
｜ Strategic Investment ① FY2023 Q3 (First Nine Months) ｜ Although revenues increased due to increased sales of logistics facilities, profit decreased due to a reactionary decline from the sale of equity in overseas businesses and increased costs. （¥ billion） FY2022 FY2023 Comparison note 〈Breakdown
Slide 39: Strategic Investment ② Renewable energy business
｜ Strategic Investment ② Renewable energy business ｜ The number of operating properties has increased, and it has grown to make a stable contribution to earnings Domestic projects acquired (As of December 31, 2023) Portfolio Properties in operation: 72 (solar: 65, wind power: 6, biomass: 1) Solar Po
Slide 40: Strategic Investment ③ Expansion of renewable energy business
｜ Strategic Investment ③ Expansion of renewable energy business ｜ Further profit expansion is planned through the solid execution of projects for which decisions have already been made and the acquisition of new non-FIT projects such as wind power generation and PPA projects Investment in facilities
Slide 41: Strategic Investment ④ Expansion of associated assets in renewables
｜ Strategic Investment ④ Expansion of associated assets in renewables ｜ Through a wide range of partnerships, we bring in expertise, expand our associated assets, and diversify our revenue sources. ・Develops renewables projects ・Captures business opportunities around the world ・Provides supplementar
Slide 42: Strategic Investment ⑤ Logistics facilities business
｜ Strategic Investment ⑤ Logistics facilities business ｜ Steady progress in securing projects while increasing asset turnover Projects acquired (As of December 31, 2023) Major projects Properties in operation: 5 LOGI’Q Ebina minami Projects under development: 16 Total floor space : 14 thousand m2 4
Slide 43: Strategic Investment ⑥ Overseas operations
｜ Strategic Investment ⑥ Overseas operations ｜ 23 projects are in progress in the United States <425 Park Avenue> U.S. Portfolio New York Office Redevelopment Project 47 stories above ground Participating projects in urban regions with 2 basements Rental housing Office / Other Completed in January 2
Slide 44: Property Management & Operation (Human capital-utilizing business)
｜ Property Management & Operation (Human capital-utilizing business) ｜ This segment offers gratifying experiences to customers Property management Property Wellness Greening, etc. & operation management Business environment of focus Acceleration of decarbonization, Acceleration of Financial and Dive
Slide 45: Property Management & Operation ① FY2023 Q3
｜ Property Management & Operation ① FY2023 Q3 (First Nine Months) ｜ Revenues and profit increased due to recovery in demand centered on the hotel business. 〈Breakdown of revenues in FY2022 FY2023 Property management business〉 （¥ billion） Comparison note Q3 Q3 [¥ billion] Operating revenue 240.4 261.
Slide 46: Property Management & Operation ② Stock of properties
｜ Property Management & Operation ② Stock of properties ｜ Condominium Management Stock Trends Major properties under management Under comprehensive management Under facility management 800,000 306,250 304,220 314,197 303,930 343,203 352,061 351,221 600,000 400,000 525,434 525,313 525,694 527,673 524
Slide 47: Property Management & Operation ③ Main projects and Operation status
｜ Property Management & Operation ③ Main projects and Operation status ｜ December RevPAR at Tokyu Stay reached a record high thanks to inbound demand captured, etc. Tokyu Harvest Club VIALA Grancreer Tsunashima Hyatt House Tokyo Shibuya TOKYU Harvest Club VIALA Hakonekoyu Karuizawa Retreat Senior ho
Slide 48: Real Estate Agents (Human capital-utilizing business)
｜ Real Estate Agents (Human capital-utilizing business) ｜ This segment leads a healthy stock-type society Real estate agents Real estate agents Rental housing service Business environment of focus Acceleration of decarbonization, Acceleration of Financial and Diversification of lifestyles diversific
Slide 49: Real Estate Agents ① FY2023 Q3
｜ Real Estate Agents ① FY2023 Q3 (First Nine Months) ｜ Increased revenues and profit mainly in the brokerage business against the backdrop of a brisk real estate transaction market 〈Breakdown in revenues of Real estate sales agent business〉 FY2022 FY2023 （¥ billion） Comparison note [¥ billion] Real
Slide 50: Real Estate Agents ② Performance indicators in sales agent
｜ Real Estate Agents ② Performance indicators in sales agent ｜ FY2023 Q3 Retail Wholesale Total Highlights Rate of change YoY No. of transactions 21,106 892 21,998 □Retail (units) +1.0% +11.8% +1.4% ・Number of brokerage offices: 210 as of March 31, 2023, with plans to open 9 new offices this fiscal
Slide 51: Real Estate Agents ③ Changes in properties under management
｜ Real Estate Agents ③ Changes in properties under management ｜ Rental Housing Management Stock Trends Major properties under management 140 120 134 142 130 100 117 107 99 80 20/3 21/3 22/3 23/3 23/12 24/3 Plan [Units: thousand] 99 107 117 130 134 142 (Change from the end of preceding fiscal year) ＋
Slide 52: Co-Creation with Partners initiatives
Co-Creation with Partners initiatives © TOKYU FUDOSAN HOLDINGS CORPORATION 52
Slide 53: Upgrade Model for Expanding Associated Assets
｜ Upgrade Model for Expanding Associated Assets ｜ We’re upgrading our model for expanding associated assets. Under the new model, we’ll deploy intellectual assets and co- create value with partners. External External partners partners Tokyu Fudosan Holdings Group Expansion of associated profits New
Slide 54: Co-Creation with Partners initiatives
｜ Co-Creation with Partners initiatives ｜ Co-create with external partners to expand assets involved Comprehensive business alliance with JR East (February 2023) A comprehensive business alliance was formed with the aim of solving social issues through environmentally symbiotic, community self-help
Slide 55: Sustainability Initiatives
Sustainability Initiatives © TOKYU FUDOSAN HOLDINGS CORPORATION 55
Slide 56: Materiality and KPI
｜ Materiality and KPI ｜ We will aim to achieve non-financial KPI based on materialities Themes to work on (Materialities) Target indicators FY2022 Result FY2025 Targets (FYI)FY2030 Targets ・Customer satisfaction level* 94% 90% or more 90% or more Create a variety of lifestyles ・Products and services
Slide 57: Sustainability Initiatives
｜ Sustainability Initiatives ｜ We address socioenvironmental issues through our business activities. Environmental Management Report 2023 Recognized on the CDP Climate Change 2023 highest-rated released in November 2023 A-List for the third consecutive year (February 2024) The report discloses our p
Slide 58: Creating more business opportunities with the environment as a starting point
｜ Creating more business opportunities with the environment as a starting point ｜ We act on priority environmental issues: decarbonized society, recycling-based society, and biodiversity We address environmental challenges through our Comprehensively addressing environmental issues as an businesses
Slide 59: Science-Based Targets for the Low-Carbon Transition
｜ Science-Based Targets for the Low-Carbon Transition ｜ We’re stepping up climate efforts, committing to our 1.5°C-aligned science-based target for 2030. Climate change-related targets 2022 FY2023 FY2025 FY2030 2050 Carbon negative Achieve the 1.5°C-aligned SBT Scope 1 and 2 Net zero Emissions ＜ thr
Slide 60: Initiatives to realize a decarbonized society (TCFD)
｜ Initiatives to realize a decarbonized society (TCFD) ｜ Scenario analysis was conducted for the Group's four businesses in the following three cases ＜Summary＞ Conduct scenario analysis to assess climate change-related risks and opportunities over the mid- to long -term (2030 and 2050) for the Group
Slide 61: Human Capital Strategy
｜ Human Capital Strategy ｜ Establishing a structure for implementing human capital management based on our human capital philosophy Implementation structure ● Platforms for connecting with the Board of Directors ● Maintenance of a structure and mechanisms for strategy implementation such as monitori
Slide 62: Human Capital Strategy
｜ Human Capital Strategy ｜ We've set human capital KPIs for each strategy. Outcomes 2030 Create value for the future Production of personnel who are highly-productive and widely contribute to society Realization of environments where employees can work with motivation and ambition and in good physic
Slide 63: Corporate Governance
｜ Corporate Governance ｜ Establish a governance system that contributes to ensuring sound and transparent management and strengthening the system for implementing the long-term management policy 〈Corporate Governance Structure〉 〈System of Remuneration for Officers〉 Improved linkage between achieveme
Slide 64: Sustainable Management External Evaluation
｜ Sustainable Management ❬External Evaluation❭ ｜ Received “AA” in the MSCI ESG Rating and recognized on the highest-rated A-List by CDP for the third consecutive year ●Selected - Not selected Classification Index/Evaluation Description of Evaluation 2018 2019 2020 2021 2022 2023 Evaluating companies
Slide 65: IR Report
｜ IR Report ｜ We continued engaging with investors and analysts to aid our sustainable growth and build our organization’s value over the long term. IR events organized in FY2022 〈Main themes of our dialogue with investors and analysts/ Major IR events Frequency Person who primarily handled the even
Slide 66: DX Initiatives
DX Ini t i at i ves © TOKYU FUDOSAN HOLDINGS CORPORATION 66
Slide 67: DX Initiatives
｜ DX Initiatives ｜ Our digital transformation focuses on business processes and customer experience. DX Report2023 released in November 2023 Tokyu Fudosan Holdings listed in DX Stocks 2023 The report discloses our progress in our Group-wide digital Tokyu Fudosan Holdings was listed in DX Stocks 2023
Slide 68: Summary of DX Report2023
｜ Summary of DX Report2023 ｜ We’ve defined the following four priority issues for providing seamless digital services that create new experience value. Four priority issues, business areas Asset-utilizing business Human capital-utilizing business Urban Regions B2C B2B Priority Deliver solutions for
Slide 69: DX Value Creation Roadmap
｜ DX Value Creation Roadmap ｜ Between now and FY2025, we’ll focus on saving labor and enhancing customer-centrism, unlocking discontinuous exponential growth in the run-up to FY2030. 2021 - 2025 2026 - 2030 Restructuring phase Resilience phase Accumulate examples of specific actions and achieve grow
Slide 70: Overview of the Medium-term management plan 2025
Reprint of Presentation Materials in May 2022 Overview of the Medium-term management plan 2025 © TOKYU FUDOSAN HOLDINGS CORPORATION 70
Slide 71: Positioning of Medium-term management plan 2025
Reprint of Presentation Materials ｜ Positioning of Medium-term management plan 2025 ｜ in May 2022 Medium-term management plan has been positioned as the restructuring phase of our long-term management policy. During the plan period, we will work realizing efficiency with a view to returning to growt
Slide 72: Outline of the medium-term management plan
Reprint of Presentation Materials ｜ Outline of the medium-term management plan ｜ in May 2022 Combine Environmental management and DX to our Group’s strengths to create unique value. Creating unique value through environmental management and DX Asset-utilizing business Environmental Human capital-uti
Slide 73: Value creation based on the Environmental Management
Reprint of Presentation Materials ｜ Value creation based on the Environmental Management ｜ in May 2022 Aiming to increase business opportunities with the environment as a starting point, through initiatives aimed for decarbonization, a recycling-oriented society, and efforts for biodiversity. Long-t
Slide 74: Value creation based on the DX
Reprint of Presentation Materials ｜ Value creation based on the DX ｜ in May 2022 Maximize the values of assets and human capital that belong to the Group integrating DX and aim to establish a new revenue model. Long-term management policy Strengths of the Group Business process CX Innovation An inte
Slide 75: Target Indicators for Fiscal 2025
Reprint of Presentation Materials ｜ Target Indicators for Fiscal 2025 ｜ in May 2022 Aim to achieve target indicators that integrate financial and non-financial data based on materialities. P r i m a r y Targets f o r E a c h M a t e r i a i t y * 1 Lifestyle Liveable City Environment DX Human Capita
Slide 76: Transitions in Target Indicators (financial indicators)
Reprint of Presentation Materials ｜ Transitions in Target Indicators (financial indicators) ｜ in May 2022 Aim for profit growth and efficiency improvement toward FY2025 through our business restructuring during the first half of the plan and the start of operations with our large-scale development p
Slide 77: Capital Allocation
Reprint of Presentation Materials ｜ Capital Allocation ｜ in May 2022 With a D/E ratio under 2.2x at the end of FY2025 as a precondition, we plan net investments at 570 billion yen (FY2021-FY2025.) CF from CF from CF from operating activities investing activities financing activities Precondition as
Slide 78: Shareholder Returns Strategy
Reprint of Presentation Materials ｜ Shareholder Returns Strategy ｜ in May 2022 Increase EPS through reinvestment in growth and maintain a stable dividend payout ratio of 30% or more for the time being. 53.1% 34.8% 35.0% Continue to maintain 27.3% 29.8% 30% or more 24.1% 25.4% 25.1% 25.1% 18.0 19.2%
Slide 79: Positioning of business segments
Reprint of Presentation Materials ｜ Positioning of business segments ｜ in May 2022 Manage the segments by classifying them into business areas with high affinity for social roles from the perspective of human capital and asset utilization. Asset-utilizing business Human capital-utilizing business St
Slide 80: Transitions in Operating Profit by Business Segment
Reprint of Presentation Materials ｜ Transitions in Operating Profit by Business Segment ｜ in May 2022 Management and operations needs from a recovery in tourism demand and strategic investments to boost infrastructure and industry-related businesses will lead profit growth. Real estate agents Proper
Slide 81: Operating Profit by Business Segment (by business division)
Reprint of Presentation Materials ｜ Operating Profit by Business Segment (by business division) ｜ in May 2022 FY2022 (Forecast at the FY2025 FY2021 time of the medium-term management plan (target) announcement) ¥120.0 billion ¥83.8 billion ¥90.0 billion Urban Development 51.9 49.7 50.0 Office and co
Slide 82: Business Portfolio Management
Reprint of Presentation Materials ｜ Business Portfolio Management ( at the time of the medium-term management in May 2022 plan announcement) ｜ In the plan, portfolio management is conducted by assessing all businesses along two axes, qualitative and quantitative evaluations. Our goal is to realize t
Slide 83: Reference
Reference © TOKYU FUDOSAN HOLDINGS CORPORATION 83
Slide 84: Segments Summary
｜ Segments Summary ｜ Asset-utilizing business Human capital-utilizing business Urban Strategic Property Development Investment Management & Real Estate Agents Operation Creating attractive Building infrastructure Leading a healthy for the next generation Offering customers stock-type society cities
Slide 85: Formulation of bond policy
｜ Formulation of bond policy ｜ Aiming to realize a sustainable society and growth through the continuous issuance of ESG bonds, we established Japan's first long-term issuance policy for ESG bonds. 〈Outline of the Bond Policy〉 Name WE ARE GREEN Bond Policy - We will obtain the comprehensive and cont
Slide 86: Trends in business performance
｜ Trends in business performance ｜ [¥billion] [%] 120 115.0 20.0 Operating profit Net income ROE(%) ROA(%) 110.4 18.0 100 16.0 83.8 80.2 79.3 80 77.5 14.0 73.2 68.8 12.0 60 56.5 10.0 8.9 7.7 7.1 7.3 7.3 7.3 8.0 6.7 40 5.7 6.0 4.1 4.1 3.5 3.6 3.7 3.5 3.7 3.3 3.2 4.0 (3.0)** 20 (3.5)** 2.2 2.0 28.7 31
Slide 87: Breakdown of Results by Segment
｜ Breakdown of Results by Segment ｜ Changes in operating profit by segment Urban Development Urban Development Property Management Strategic Investment Wellness Property Management & Operation Tokyu Hands Real Estate Agents ¥billion Innovation business Elimination Real-Estate Agents Residential 115.
Slide 88: Tokyu Fudosan Group's Value Creation Process
｜ Tokyu Fudosan Group’s Value Creation Process ｜ © TOKYU FUDOSAN HOLDINGS CORPORATION 88
Slide 89: Office Market
｜ Office Market ｜ Vacancy rates are trending downward in Shibuya Ward due to the limited total office floor space and the high demand for additional floor space by many growing companies. 〈Vacancy rate〉 〈Average rent〉 （%） (2012 figures = 100) 12.0 Chiyoda-ku 150.0 Chiyoda-ku Chuo-ku Chuo-ku 10.0 Min
Slide 90: Trends in Total Floor Area of Office and Retail Properties
｜ Trends in Total Floor Area of Office and Retail Properties and Characteristics of Retail Properties ｜ Developing commercial facilities in convenient areas, primarily in the Tokyo metropolitan area and the Kansai area 〈Total floor area Trends〉 〈Features of our commercial facilities〉 2,000 Locations
Slide 91: Major project KUDAN-KAIKAN TERRACE
｜ Major project ~ KUDAN-KAIKAN TERRACE (Opened in Oct.2022)～ ｜ A workplace with "unique features" that combines history and state-of-the-art technology A facility where history and cutting-edge technology are integrated. Embodying the concept of “retro-modernism in bloom along the waterfront Partial
Slide 92: GREEN WORK STYLE
｜ GREEN WORK STYLE ｜ Provide tenants with a one-stop service that leverages the Group's business domain to meet diverse office needs Multiple workplaces Environmental Initiatives Provide multiple and flexible workplaces to suit diverse work styles Support tenants' contribution to a sustainable socie
Slide 93: Condominiums for Sale Market
｜ Condominiums for Sale Market ｜ The number of units supplied remains stable at a low level. Average price remains high. 〈New condominiums sold in the Tokyo metropolitan area and average price〉 [Number of units] [¥ thousand] 100,000 70,000 Number of units sold Avarege price 62,880 80,000 60,000 60,0
Slide 94: Major office buildings
｜ Major office buildings ｜ Own 47 buildings mainly in 4 central wards of Tokyo No. of Total floor Area Major properties[Building] Year built Remarks buildings space * Shibuya Dogenzaka Tokyu 1983 13 Unosawa Tokyu 1984 15 Shibuya Shin-Minamiguchi 2000 7 Ebisu Business Tower 2003 23 Shibuya Square 200
Slide 95: Major commercial facilities
｜ Major commercial facilities ｜ The Group operates 24 locations in the Tokyo area and 8 locations in Kansai and other regions No. of Major properties Total floor Area Year built Remarks facilities [Commercial facilities] space * Tokyu Plaza Kamata 1968 28 Shibuya ＢＥＡＭ 1992 7 DECKS Tokyo Beach 1997 3
Slide 96: Major operating facilities
｜ Major operating facilities ｜ The Group operates 66 hotels, 9,010 rooms Number of Number of Name of facilities facilities rooms Teteshina Hakone Koshien Nasu Nasu Retreat Katsuura Madarao Kyu Karuizawa Annex Karuizawa Tokyu Harvest Club Hamanako Tateshina Annex VIALA Hakone Hisui VIALA annex Karuiz
Slide 97: Past performance (financial)
｜ Past performance (financial) ｜ （￥ million） FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Operating revenue 714,067 773,149 815,479 808,503 866,126 901,884 963,198 907,735 989,049 1,005,836 Operating profit 61,433 63,300 68,750 73,227 77,519 80,205 79,312 56,517 83,817 110,4
Slide 98: WE ARE GREEN
WE ARE GREEN
Tokyu Fudosan Holdings — Q3 FY2023 Earnings Presentation on 6ix