Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q3 FY2022 Earnings Presentation
80 slides from Tokyu Fudosan's earnings presentation, February 2023
Slide 1: Financial Highlights FY2022 Third Quarter
Securities Code : 3289 Financial Highlights WE ARE GREEN Create Value for the Future FY2022 Third Quarter (First Nine Months) Ended December-31, 2022 @ TOKYU FUDOSAN HOLDINGS
Slide 2: Forward-looking statements
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 | * Summary of the Financial Results for FY2022 Third Quarter **+:-+ 4 * Segment Overview oe ee 14 ¢ Sustainability and DX Initiatives ee ee 33 ¢ Financial Capital Strategy eee 6 43 * Overview of the Medium-term management plan 2025 see 50 * Reference eee e 63 © TOKYU FUDOSAN HOLDINGS COR
Slide 4: Summary of the Financial Results for FY2022 Third Quarter
Summary of the Financial Results for FY2022 Third Quarter © TOKYU FUDOSAN HOLDINGS CORPORATION
Slide 5: Highlights
| Highlights | Topics Contents Operating profit 62.0 billion yen (+8.8 billion yen YoY) Net income*30.9 billion yen (+2.7 billion yen YoY) FinanciallResultsifonthesthird Increase in the number of condominiums posted for sale and increase in sales of logistics facilities and rental housing, etc., and
Slide 6: FY2022 Major business environment
| FY2022 Major business environment | Topics Offices Commercial facilities Contents Vacancy rates and office rent have not fluctuated significantly, but intensity of rent fluctuates by area. Tight supply-demand balance is expected to continue _for the time being in the Shibuya area, the Company's co
Slide 7: FY2022 Q3 Operating Results, major index
| FY2022 Q3 (First Nine Months) Operating Results, major index | Despite impairment losses related to business portfolio management, each level of profit increased YoY cu = = — FY2022 Forecast** Progress note Operating Revenue 634.1 641.7 989.0 1,005.0 63.9% [Extraordinary income Operating profit 53
Slide 8: FY2022 Q3 Segment performance
| FY2022 Q3 (First Nine Months) Segment performance | Profits increased except in the Urban Development business segment, where gain on sales by asset declined, and asset sales progressed steadily toward Full-Year Plan FY20: FY2022 billion) Comparison eyo0n1 | F¥2022. | comparison Forecast | (Foreca
Slide 9: FY2022 Q3 Analysis of segment performance
| FY2022 Q3 (First Nine Months) Analysis of segment performance | +8.8 billion yen compared to FY2021 Q3, +10.3 billion yen before transfer of loss on the COVID-19 + Increase in real estate agent sales due to active real estate + Property Management business +1.4 billion yen > transaction market + W
Slide 10: FY2022 Earnings forecasts and analysis of segment performance
| FY2022 Earnings forecasts and analysis of segment performance (No change from November disclosure) | +11.2 billion yen compared to FY2021, +12.7 billion yen before transfer of loss on the COVID-19 + Property Management business +2.6 billion yen + Wellness business +5.8 billion yen: +6.2* billion y
Slide 11: Interest-bearing debt breakdown
Short-term borrowings Real Estate Agents CP 20.0 1% Current portion of 44.8 3% 63.4 bonds payable Real Estate Agents 31.8 8% Current portion of Property Management 20.0 1% 3% long-term borrowings Property Management & Operation 29.2 93.9 6% & Operation 168.0 4% 14% Strategic Investment 58.5 5%
Slide 12: Market value appraisal for leased properties
| Market value appraisal for leased properties (As of March 31, 2022) | Unrealized profit of leased properties increased thanks to the firm real estate market (¥ billion) [aves [Avaiaeat omparison Mar-2021 | Mar-2022 Remarks Carrying Value 838.3 764.0 (74.3) CMarket value at the end of the fiscal ye
Slide 13: Summary of Cash flow and Investment Plan
| Summary of Cash flow and Investment Plan (No change from November disclosure) | Non-current assets to be invested mainly in Kudan-Kaikan Terrace and renewable energy facilities, and inventories to be invested mainly in rental housing and logistics facilities, etc. q FY2021 FY2022 5 (¥ bi Main fact
Slide 14: Segment Overview
Segment Overview © TOKYU FUDOSAN HOLDINGS CORPORATION 14. I
Slide 15: Urban Development FY2022 Q3
| Urban Development @® FY2022 Q3 (First Nine Months) | Decrease in revenues and profit mainly due to decrease in sales in the Urban Development Business despite increase in the number of condominiums posted in the Residential Business and sales of rental housing, etc. «Breakdown of revenues in Urban
Slide 16: Urban Development Vacancy Rate and Rent
| Urban Development @ Vacancy Rate and Rent | As of December 31, 2022, Vacancy rate 2.8 % Average office rent 28,360 yen (Month/Tsubo). (Office buildings and Commercial facilities) If the KUDAN-KAIKAN TERRACE which was completed in July, is excluded, the vacancy rate was remained at a low of 1.1%. V
Slide 17: Major projects schedule
FY2021 FY2022 FY2023 After FY2024 Or Before Jingumae 6-chome Block Redevelopment Project
Slide 18: Urban Development Major projects (Greater Shibuya area)
| Urban Development @ Major projects (Greater Shibuya area) | Several projects are ongoing in the Greater Shibuya area © Redevelopment Project © Commercial facility © Office building © Properties owned by Activia Properties Inc. © Propertiesjoint capital investment with Norges Bank Redevelopment Pro
Slide 19: Major project KUDAN-KAIKAN TERRACE
| Urban Development © Major project ~ KUDAN-KAIKAN TERRACE ~ | 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 20: Initiatives in COVID-19 (GREEN WORK STYLE)
| Urban Development © Initiatives in COVID-19 (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 Suppor
Slide 21: Urban Development Condominium index
| Urban Development @ Condominium index | Contract ratio at the end of third quarter was 102% r FY2020 BRANZ «Major upcoming projects) FY2021 FY2{ eca! ~ Na Unit begin No. of units sold 1,777 2,194 1,296 (Q3: 940) FY2023 |HARUMI FLAG 4,145] |Average price per unit (million yen) 60 64 70 (Q3: 72) IBR
Slide 22: Strategic Investment FY2022 Q3
| Strategic Investment @ FY2022 Q3 (First Nine Months) | Increase in revenues and profit due to the sale of logistics facilities and increase in the number of facilities operating on renewable energy sources Fy2021 | FY2022 «Breakdown of revenues in (¥ billion) @ | Q3 Comparison note Infrastructure
Slide 23: Strategic Investment Renewable energy business
| Strategic Investment @ Renewable energy business | The number of operating properties has increased, and it has grown to make a stable contribution to earnings Projects acquired (As of December 31, 2022) Portfolio Properties in operation: 63 (solar: 58, wind power: 4, biomass: 1) biomass power pla
Slide 24: Gross profit chart
[Gross profit： ¥ billion] 12.0 10.0 8.0 6.0 4.0 2.0 0.0
Slide 25: Strategic Investment Logistics facilities business
| Strategic Investment @ Logistics facilities business | III LOGI'Q Development projects are sequentially put into operation. Revolving type business accelerated. Projects acquired (As of December 31, 2022) Major projects Properties in operation: 4 Projects under development: 15 LOGI’Q Kyoto Kumiyam
Slide 26: Strategic Investment Overseas operations
| Strategic Investment © Overseas operations | 22 projects are in progress in the United States U.S. Portfolio 425 Park Avenue New York Office Redevelopment Project 47 stories above ground with 2 basements Completed in January 2021 AY Seattle(8) L > (J Portland(3) Denver(1) e . Eavateals) © Washingt
Slide 27: Property Management & Operation FY2022 Q3
| Property Management & Operation @ FY2022 Q3 (First Nine Months) | Decrease in revenues but increase in profit due to recovery from the impact of Covid19, despite the exclusion of Tokyu Hands conso sition sz «Breakdown of revenues in billion ot 3 {com note Property management business) Operating re
Slide 28: Property Management & Operation Stock of properties
| Property Management & Operation @ Stock of properties | Condominium Management Stock Trends Major properties under management m Under comprehensive management m= Under facility management 800,000 Y 600,000 400,000 523,059 200,000 Z 19/3 20/3 21/3 22/3 22/12 23/3 Plan Total units (Change fromtheend
Slide 29: Main projects and Operation status
| Property Management & Operation @ Main projects and Operation status | Tokyu Stay's RevPAR recovered to pre-Covid-19 levels in Dec thanks to domestic demand and inbound demand due to deregulation ROKU KYOTO, LXR Hotels & Resorts Tokyu Harvest Club Kyoto Tokyu Harvest Club VIALA Kinugawa Keisui STO
Slide 30: Real Estate Agents FY2022 Q3
| Real Estate Agents @ FY2022 Q3 (First Nine Months) | Increase in both revenues and profit, mainly in the real estate agents business against the backdrop of brisk real estate sales market : FY2021 | FY2022 «Breakdown in revenues of Real (¥ billion) Comparison note estate sales agent business) Q3 Q
Slide 31: Performance indicators in sales agent
| Real Estate Agents @ Performance indicators in sales agent | FY2022 Q3 Retail Wholesale Total Highlights Rate of change YoY No. of transactions 20,906 798 21,704 ORetail (units) +2.5% (1.2)% +2.4% + Both the number of transactions and amount of transactions increased from - FY2021 Q2. Amount of tr
Slide 32: Changes in properties under management
| Real Estate Agents @ Changes in properties under management | Rental housing Management Stock Trends Major properties under management 120 110 100 "i | 80 ZZ 19/3 20/3 21/3 22/3 22/12 23/3 Plan (Units: thousand] 93 99 107 117 125 127 Grroseserrwstyen) +6 +6 +8 +10 | +8 +10 Student condominiums, et
Slide 33: Sustainability and DX Initiatives
Sustainability and DX Initiatives © TOKYU FUDOSAN HOLDINGS CORPORATION 33, I
Slide 34: Materiality and KPI
| Materiality and KPI | We will aim to achieve non-financial KPI based on materialities + Customer satisfaction level* 95% 90% or more 90% or more 100cases or more (10, fe ap Create a variety of COZ lifestyles 100cases or more Create communities — . Measures to revitalize communities 21cases and lif
Slide 35: Topics (Sustainability)
| Topics (Sustainability) | We resolve social issues through our business activities. Tokyu Land Corporation has completed the switch to 100% renewable energy sources** for electricity consumption at its offices and owned facilities*, a requirement ott for achieving "RE100" target. Utilizing non-fos
Slide 36: Initiatives to realize a decarbonized society
| Initiatives to realize a decarbonized society | ot Environment Promote various initiatives to achieve SBT 1.5°C target for FY2030, and CDP Climate Change A list selected for the second consecutive year International Agreement commun Paris Agreements PARIS 2015 Keep the increase in temperature to w
Slide 37: GX League participation
₂ ₂ ₂ Tokyu Land Corporation endorses the basic concept and participates in the preparation for the full-scale operation of GX League.
Slide 38: Disclosure by governance, strategy, risk management, targets
• • • ✓ • • • • • • ✓ • • • • • • • • ✓ • • • ✓ • • Disclosure broken down into governance, strategy, risk management, and indicators and targets
Slide 39: Corporate Governance
| Corporate Governance | SF 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) General meeting of shareholders Coordination Coordination
Slide 40: External evaluation selections
❬ ❭ ●Selected - Not selected / No evaluation
Slide 41: Roadmap for Value Creation through DX
| Roadmap for Value Creation through Dx | Se Dx By 2025, the group will promote labor-saving operations and the sophistication of customer contact, aiming for discontinuous and exponential growth by 2030 GROUP VISION 2030 Create value for the future 2021 2025 2030 Resilience phase Discontinuous and
Slide 42: DX Initiatives
| DX Initiatives | x Business process and CX reforms are underway Digital twinning of entire condominium By entering into a strategic partnership with Accenture and utilizing their Computer-Generated Imagery (CGI), we will create and improve the CX of digital twins for BRANZ properties, and in the f
Slide 43: Financial Capital Strategy
Financial Capital Strategy © TOKYU FUDOSAN HOLDINGS CORPORATION 43, I
Slide 44: Asset breakdown by segment
〈Asset breakdown by segment 〉 Rreal Estate Agents 202.1 Property Management & Human capital Operation utilization 405.8 608.0 Urban Total assets Development （Before adjustments） 1,595.3 2,746.6 Asset utilization Strategic 2,138.7 Investment 543.3 * Figures in parentheses are ROA of Asset-utilizing b
Slide 45: Companywide / Excluding amortization
Companywide/ Excluding amortization
Slide 46: Financial Capital Strategy
| Financial Capital Strategy @ | Teese = Maintain financial discipline by executing hybrid financing and taking other steps a2 ee Net assets mam Equity mam Interest-bearing Debt Brose , [¥billion] —®-Debt Equity ratiio —e—Debt/EBITDA ratio 1,600 20.0 Rating Peace Rating Agency Y + Long-t tA (St 1,40
Slide 47: Dividends
[Yen] [Yen] * Dividends before interim dividends for the fiscal year ended March 2014 are those paid by Tokyu Land Corporation.
Slide 48: Funding breakdown
70% 50% 50.0 billion/18％ 10.0 billion/5%
Slide 49: The Group's ESG Bonds to Date
| The Group's ESG Bonds to Date | Sustainability-Linked Bond (October 2021) Term 10-year Issue Amount 10 billion yen Interest rate 0.300% per annum (Pricing Date: October 5, 2021) SPTs SPT1: Reduce greenhouse gas emissions by 46.2% by FY2030 SPT2: Achieve carbon-negative status by FY2025 On the matu
Slide 50: Overview of the Medium-term management plan 2025
Overview of the Medium-term management plan 2025 © TOKYU FUDOSAN HOLDINGS CORPORATION 50. I
Slide 51: © TOKYU FUDOSAN HOLDINGS CORPORATION
© TOKYU FUDOSAN HOLDINGS CORPORATION 51
Slide 52: Strengths of our Group: Assets and Human capital
strengths of our Group Assets Human strengths of our Group capital • • • • • • © TOKYU FUDOSAN HOLDINGS CORPORATION 52
Slide 53: © TOKYU FUDOSAN HOLDINGS CORPORATION
× • • • • • • • • • © TOKYU FUDOSAN HOLDINGS CORPORATION 53
Slide 54: Medium-term management plan
× Medium-term management plan • • • • © TOKYU FUDOSAN HOLDINGS CORPORATION 54
Slide 55: Medium-term plan targets
*1: Detailed targets are stated on p. 34. *2: Tokyu Cosmos Members Club questionnaire *3: Scope 1 & 2 under SBT certification *4: Profit attributable to owners of parent © TOKYU FUDOSAN HOLDINGS CORPORATION 55
Slide 56: Profit targets
¥ 65.0 billion ¥ 37.0 billion © TOKYU FUDOSAN HOLDINGS CORPORATION 56
Slide 57: Investment plan (net investment amount)
• • • • (net investment amount)*2 • • • • • • • • © TOKYU FUDOSAN HOLDINGS CORPORATION 57
Slide 58: Financial targets and indicators
53.1% 34.8% 35.0% 29.8% 27.3% 24.1% 25.4% 25.1% 25.1% 18.0 19.2% 17.0 16.0 16.0 15.5 14.5 13.0 12.0 10.0 8.0 © TOKYU FUDOSAN HOLDINGS CORPORATION 58
Slide 59: © TOKYU FUDOSAN HOLDINGS CORPORATION
© TOKYU FUDOSAN HOLDINGS CORPORATION 59
Slide 60: © TOKYU FUDOSAN HOLDINGS CORPORATION
• • • • • © TOKYU FUDOSAN HOLDINGS CORPORATION 60
Slide 61: © TOKYU FUDOSAN HOLDINGS CORPORATION
© TOKYU FUDOSAN HOLDINGS CORPORATION 61
Slide 62: © TOKYU FUDOSAN HOLDINGS CORPORATION
© TOKYU FUDOSAN HOLDINGS CORPORATION 62
Slide 63: Reference
Reference © TOKYU FUDOSAN HOLDINGS CORPORATION 63 nner nnnnnr ener e errr een r een e reer
Slide 64: Operating profit, Net income, ROE, ROA
Operating profit Net income ROE(%) ROA(%)
Slide 65: Segment reorganization
Urban Development(～2020) Property Management Wellness Tokyu Hands Innovation business Real-Estate Agents Residential
Slide 66: Process for Value Creation
| Process for Value Creation | We create unique and original business models by tackling social issues, and achieve sustainable growth by linking the value created to stakeholder satisfaction Create value for the future suname= GOALS Engagement themes Confronting social issues (materialities) Pep Se
Slide 67: From the 2019 Integrated Report
* From the 2019 Integrated Report
Slide 68: Basic Policy for Increasing Shareholder Value and Corporate Value
| Basic Policy for Increasing Shareholder Value and Corporate Value | We will aim to enhance shareholder value and corporate value by realizing efficiency-conscious profit growth under an optimum financial capital structure Asset Control Liability and Equity Control fficient Improvement of Existing
Slide 69: Tokyo office market vacancy and rent
12.0 150.0 Chiyoda-ku Chiyoda-ku Chuo-ku 140.0 Chuo-ku 10.0 Minato-ku Minato-ku Shinjyuku-ku 8.22 Shinjyuku-ku 8.0 Shibuya-ku 130.0 Shibuya-ku 129.0 8.07 Tokyo business district Tokyo business district 122.6 6.47 120.0 121.5 6.0 5.87 118.6 4.68 115.1 4.0 110.0 112.8 3.65 2.0 100.0 0.0 90.0 12/1 14/1
Slide 70: Portfolio by area and completed year
〈Area〉 〈Completed year〉 Metropolitan 4districts After 2011 727 thousand ㎡（91%） 45 buildings 397 thousand ㎡（50%） 11 buildings Kansai 1% -1980 2% 11 [1] 17 [6] Other metropolitan area 1% 1981-1990 10% 7 [1] 77 [9] Chiyoda-ku 1991-1995 5% 39 [8] Other Tokyo districts 18% 7% 145 [7] 1996-2000 2% 56 [5]
Slide 71: Business development addressing social issues (Diverse work styles)
| Business development addressing social issues (Diverse work styles) | Developing workspaces leveraging the Group's diverse assets City center City center — Suburban area Local Area Flexible office Workcation Center Office QUICK » xa7u# Individual workplace . Hotet Harvest QUICK solo NW NewWork Wor
Slide 72: Commercial facilities features
| Commercial facilities features | Developing commercial facilities in convenient areas, primarily in the Tokyo metropolitan area and the Kansai area (Features of our commercial facilities> Locations that are commercially busy and TOKYU OLAZA Q2 plaza convenient in terms of transportation Other Area
Slide 73: Transition in total floor area and AUM in Urban Development Segment
| Transition in total floor area and AUM in Urban Development Segment | Promote expansion of assets involved {Total floor area) <AUM) Thousand ni 2,000 m= Commercial facilities elie vers @ Office buildings eve REITs, etc. 1,647.2 20%. 1,617 1,615 Ld 1,530.9 1,579 7 x 1,467.2 , 1,500 mAPIX 146 1,500
Slide 74: 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 62.600 80,000 60,000
Slide 75: Major office buildings
| Major office buildings | Own 52 buildings mainly in 4 central wards of Tokyo No. of : : 7 : wiletiaes Major properties [Building] Shibuya Dogenzaka Tokyu 1983 Unosawa Tokyu 1984 Shibuya Shin-Minamiguchi 2000 Ebisu Business Tower 2003 Shibuya-ku 20 Shibuya Square 2004 Shibuya Minami Tokyu 2005 Shib
Slide 76: Major commercial facilities
| Major commercial facilities | The Group operates 24 locations in the Tokyo area and 8 locations in Kansai and other regions Area i Si Ie ifr frre xeric r built facilities [Commercial facilities] Tokyu Plaza Kamata 1968 Tokyu Plaza Akasaka 1969 Shibuya BE AM 1992 - DECKS Tokyo Beach 1997 TToKyuPlaz
Slide 77: Major renewable energy facilities
| Major renewable energy facilities | The Group is advancing businesses through 71 solar power generation projects, 10 wind power generation projects and 5 biomass power generation projects eel Suzuran Kushirocho Kushiro-gun Kushiro-cho, Hokkai-do 92.2 ReENE Tomakomai ‘Tomakomai-shi, Hokkaido 5.3 Re
Slide 78: Major operating facilities
| Major operating facilities | The Group operates 66 hotels, 9,173 rooms Number of | Numbe Es Nenesite - Teteshina Hakone Myojindai Urabandai Grandeco Kyoto Takagamine Katsura Madarao Nasu VIALA annex Kyoto Takagamine |Hamanako Tateshina Annex. Kyu Karuizawa Annex Nasu Retreat TokyuHarvestClub) 26 2
Slide 79: Past performance (financial)
| Past performance (financial) | (¥ million) rts | rz | rvzns | rvzoie | _rzon7_ | rvzone_ | rraoi9 | x2020_ | F¥2021_| Operating revenue 714,067 773,149 815,479 808,503 866,126 901,884] 963,198 907,735 989,049 Operating profit Ordinary profit | _ Net profit* Total assets 1,789,822| 1,973,801] 1,984
Slide 80: WE ARE GREEN
WE ARE GREEN @ TOKYU FUDOSAN HOLDINGS
Tokyu Fudosan Holdings — Q3 FY2022 Earnings Presentation on 6ix