Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q1 FY2021 Earnings Presentation
53 slides from Tokyu Fudosan's earnings presentation, August 2021
Slide 1: Financial Highlights FY2021 First Quarter
Securities Code : 3289 WE ARE GREEN Create Value for the Future Financial Highlights FY2021 First Quarter (First Three Months) Ended June-30, 2021 @ TOKYU FUDOSAN HOLDINGS
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 | * Overview of the FY2021 First Quarter (First Three Months) Ended June 30, 2021 oo000 % ¢ Reference ne 5 | © TOKYU FUDOSAN HOLDINGS CORPORATION 2 SESS
Slide 4: Overview of the FY2021 First Quarter
Overview of the FY2021 First Quarter (First Three Months) Ended June 30, 2021 © TOKYU FUDOSAN HOLDINGS CORPORATION 3 SESS
Slide 5: FY2021 Q1 Highlights
| FY2021 Q1 (First Three Month) Highlights | Topics Contents By transforming the Group's unique characteristics into strengths through environmental management and DX, and by evolving our model for expanding the assets involved, we aim to build a strong and unique business portfolio and increase sha
Slide 6: Impact of COVID-19 on each business
| Impact of COVID-19 on each business | Business activities were restricted due to the declaration of a state of emergency and other factors, but the impact was limited compared with the same period last year. : FY2020 FY2021 Segment/Business Qi Ql [Metropolitan area] Temporary closure of entire Tem
Slide 7: FY2021 Q1 Operating Results
| FY2021 Q1 (First Three Months) Operating Results | Despite the continuing impact of COVID-19, both revenue and profit increased compared to the same period of the last year, when business activities were severely constrained. bil FY2020 FY2021 Comparer FY2 FY2021 Presvess Compared to the same peri
Slide 8: FY2021 Q1 Segment performance
| FY2021 Q1 (First Three Months) Segment performance | Profits increased yoy in all segments, and asset sales are scheduled for the second quarter and beyond. a FY2020 FY2021 : FY2021 . compared to the same period (¥ billion) Comparison} FY2020 Comparison Ql Ql Forecast last year Operating revenue 1
Slide 9: Analysis of segment performance
| FY2021 Q1 (First Three Months) Analysis of segment performance | +14.2 billion yen compared to the same period last year, +19.3 billion yen before transfer of loss on COVID-19 «Increase in real estate sales agent sales due to COVID-19 . ae _ rebound demand and active real estate transaction market
Slide 10: Summary of balance sheets
| FY2021 Q1 (First Three Months) Summary of balance sheets | Increase in real estate for sale due to progress in investments FY2020 FY2021 FY2020 FY2021 (¥ billion) As of Mar-31,|As of Jun-30, (¥ billion) As of Mar-31,|As of Jun-30, 2021 agp mE 2021 arya, COMTBEN rison Cash and deposits 190.0 114.4
Slide 11: Reorganization of Business Segment
| Reorganization of Business Segment | We have been reorganized into four business segments from the previous seven business segments from the perspective of human capital and asset utilization from FY2021. Urban Development Residential Property Management Real Estate Agents Wellness Tokyu Hands Inn
Slide 12: Urban Development FY2021 Q1
| Urban Development @ FY2021 Q1(First Three Months) | Decrease in sales of office and commercial facility assets but decrease in revenues with increase in profit owing to contribution from Tokyo Port City Takeshiba, etc. First Quarter FY2020 FY2021 a (¥billion) | Ql | Ql (com Compared to the same pe
Slide 13: Urban Development Vacancy Rate and Rent
| Urban Development @ Vacancy Rate and Rent | As of June 30, 2021, Average office rent 28,100 yen (Month/Tsubo) Vacancy rate 1.0% (Tenants actually moving in and out, including Office buildings and Commercial facilities) Vacancy Rate Rent (¥/Month/Tsubo) ees Tsubo & 3.3ni _¥30,000 10% ¥25,000 8% ¥20
Slide 14: Major projects timeline
FY2020 Or Before FY2021 FY2022 FY2023 After FY2024 Jingumae 6-chome Block Urban Redevelopment Project Shibuya-ku Commercial/Public facilities Floor space ：20 Open：FY2023 (Plan)
Slide 15: Major projects (Greater Shibuya area)
| Urban Development @ Major projects (Greater Shibuya area) | Several projects are ongoing in the Greater Shibuya area. Harajuku © Redevelopment Project © Commercial facility © Office building © Properties owned by ActiviaProperties nc. © Properties joint capital investment with Norges Bank Redevelo
Slide 16: Urban Development Condominium index
| Urban Development © Condominium index | Contract ratio at the end of first quarter compared with condominium sales forecast in the fiscal year ending March 2022: 68% Major condominiums ‘163units(100%) 475units(30%) No. of units sold 1,680 1777 2,290 center trenMiEner 54% 66% 82% 90% 50% 57% 76% 93
Slide 17: Strategic Investment FY2021 Q1
| Strategic Investment @ FY2021 Q1(First Three Months) | Increase in revenue and profit due to sale of logistics facilities and commencement of operation of renewable energy facilities First Quarter FY2020 FY2021 : P (¥ billion) | Ql | Ql Comparison Compared to the same period last year Operating re
Slide 18: Strategic Investment Renewable energy business
| Strategic Investment @ Renewable energy business | ReENE >>> REED warenomscessuy—eacusa) TcuMITTEROR ScpP The number of operating properties has increased, and it has grown to make a stable contribution to earnings. Projects acquired (As of June 30, 2021) Properties in operation : 47 (solar power
Slide 19: Investment amount and operating property transition
Investment amount and operating property transition Major projects (100% stake in the Company)
Slide 20: Strategic Investment Logistics facilities business
| Strategic Investment ©@ Logistics facilities business | Cyclical reinvestments will be executed aggressively with a series of development projects starting operation. Projects acquired (As of June 30, 2021) Introduction of future projects Properties in operation: 5 Projects under development: 7 CP
Slide 21: Strategic Investment Overseas operations
| Strategic Investment @ Overseas operations | 15 projects are in progress in the United States. *As of March 31, 2021 A sesties) My Portland(1) San Francisco(2) é Los Angeles(3) % e New York(1) e Washington DC(1) Charlotte(1) e Y Atlanta(2) Urban area (number of projects involved) @ Rental housing
Slide 22: Property Management & Operation FY2021 Q1
| Property Management & Operation @ FY2021 Q1(First Three Months) | Revenue and profit increased mainly in businesses that were significantly affected by COVID-19 in the same period last year. First Quarter FY2020 FY2021 . ‘ (¥billion) | Ql | Q1 [comparison Compared to the same period last year Oper
Slide 23: Property Management & Operation Stock of properties
| Property Management & Operation @ Stock of properties | The expansion of management stock and the rearrangement of unprofitable projects will be advanced. (Trend in stock of comprehensive condominium management and facility management in number of units) m Under comprehensive management m Under fa
Slide 24: Hotels and senior housing openings
Tokyu Stay Hida-Takayama nol kyoto sanjo Tokyu Stay Hakodate Tokyu Stay Shinjuku East side ROKU KYOTO, LXR Hotels & Resorts Musubi no Yu Resort hotel Asaichi Akari no Yu Urban style hotel Resort hotel Urban style hotel Opened in November 2020 Urban style hotel Open in August 2021(Plan) Open in Septe
Slide 25: Real Estate Agents FY2021 Q1
| Real Estate Agents @ FY2021 Q1(First Three Months) | Increased revenue and profit due to an increase in the number of real estate sales agent sales and the sale of large properties in real estate sales voller) | “O | “OL Comparison Compared to the same period last year Operating revenue i2)1 65.1
Slide 26: Performance indicators in sales agent
| Real Estate Agents @ Performance indicators in sales agent | Both retail and wholesale transaction volume increased in the first quarter. FY2021 Q1 Retail Wholesale Total Highlights Rate of change YoY No. of transactions 6,379 242 6,621 ORetail (units) +29.5% +60.3% +30.4% + Both the number of tra
Slide 27: Changes in properties under management
| Real Estate Agents @ Changes in properties under management | Aim at achieving stable revenue growth by expanding management stock. «Rental housing under management) 110 100 . a _ a 18/3 19/3 20/3 21/3 21/6 22/3 Plan (Units: thousand] 87 93 99 107 110 114 (Change from the end of preceding fiscal y
Slide 28: Initiatives for Achieving RE100 Targets
| Initiatives for Achieving RE100 Targets | RE THE CLIMATE GROUP ¥CDP Tokyu Land Corporation moved substantially the year for achieving RE100 targets forward from 2050 to 2025. <State of initiatives in Tokyu Land Corporation) + Achieved RE100 targets for owned facilities, making the most of self gen
Slide 29: Initiatives Related to Climate Change
| Initiatives Related to Climate Change | Verify climate change risks and business opportunities and formulate 1.5 °C targets for CO2 emissions reduction. Werifying multiple scenarios for climate change risks and business opportunities based on recommendations by the Task Force on Climate-related Fi
Slide 30: ESG indices and evaluations
●Selected - Not selected / No evaluation Index/Evaluation Description of Evaluation Evaluating companies’ sustainability in comprehensive consideration of economic, environmental, and social aspects Evaluating companies’ activities to fulfill their social responsibilities in terms of environmental,
Slide 31: Remuneration structure
• • • • Fixed Remuneration Variable Remuneration Item Monthly Stock-based Remuneration Bonus Compensation Basic Short-term Medium-to-long- Positioning remuneration incentive term incentive Target percentage of total remuneration 60% 30% 10% Linked to Linked to stock Approach to fluctuation performan
Slide 32: Reference
Reference © TOKYU FUDOSAN HOLDINGS CORPORATION 31 SESS
Slide 33: Asset Control, Liability and Equity Control
Asset Control Liability and Equity Control • • • • • • • • • • •
Slide 34: Asset breakdown by segment
〈Asset breakdown by segment 〉 *As of March 31, 2021 Real Estate Agents 193.7 Property Management & Human capital Operation utilization 455.9 649.6 Urban Development 1,708.2 Total assets （Before adjustments） 2,733.5 Asset utilization Strategic 2,083.9 Investment 375.6
Slide 35: Financial Capital Strategy: asset turnover
| Financial Capital Strategy @ | Promote efficient asset turnover and profit generation by closely observing trading markets. «Changes in gain on sales) [¥billion] mam Revenue from properties sold 200 =e=Gross margin ze 30 “ 150 22.0 20 100 10 50 158.5 C) . 10 18/3 19/3 20/3 21/3 22/3 Forecast <Real
Slide 36: Financial Capital Strategy: financial discipline
| Financial Capital Strategy @ | Maintain financial discipline by executing hybrid financing and taking other steps. [¥billion] 1,600 1,400 1,200 1,000 800 600 400 200 Total assets 2, 3 billion yen Treas ee 2,652.3 billion yen Net assets 608.7 mam Equity man Interest-bearing Debt billion yen —e®Debt
Slide 37: Medium-Term Management Plan and dividends
Medium-Term Management Plan [Yen] 2017-2020 [Yen] * Dividends before interim dividends for the fiscal year ended March 2014 are those paid by Tokyu Land Corporation.
Slide 38: Recognized Conditions for Main Businesses
| Recognized Conditions for Main Businesses xthe beginning of FY2021 The recovery from the effects of COVID-19 will differ from one business to another. The Group will focus on measures based on a careful look at the post-pandemic situation. No major effect on the vacancy rate and rent has been obse
Slide 39: Trends in business performance
| Trends in business performance | ¥billion Medium term management plan a mm Operating profit 2017-2020 20.0 mm Profit attributable to owners of parent 90 | —ROE(%) 18.0 —Debt Equity ratio 775 80.2 79.3 80.0 80 * 16.0 13.2 68.8 70 14.0 63.3 60 56.5 12.0 50 10.0 40 8.0 30 6.0 20 4.0 10 3)4 ayy 29 t)
Slide 40: Breakdown of Results by Segment
| Breakdown of Results by Segment | Changes in operating profit by segment lm Urban Development(~2020) mas Urban Development mmm Property Management mas Strategic Investment mmm Wellness mam Property Management & Operation _ lm Tokyu Hands Real Estate Agents ¥billion lami Innovation business Elimina
Slide 41: Carrying Value (In development) Breakdown
79.7 Carrying Value (In development) Breakdown As of March 2019 ・Shibuya Solasta ・Shibuya Fukuras ・Jimbocho North Tokyu Building ・Tokyo PortCity Takeshiba (Office tower) As of March 2020 ・Tokyo PortCity Takeshiba (Office tower, Residence tower) As of March 2021 Not applicable
Slide 42: Office portfolio by area and completed year
〈Area〉 〈Completed year〉 Metropolitan 4districts After 2011 681 thousand ㎡（88%） 46 buildings 336 thousand ㎡（44%） 9 buildings Kansai 1% 11 [1] Other metropolitan area -1980 2% 2% Chiyoda-ku 17 [6] 14 [2] 11% 85 [6] 1981-1990 12% Other Tokyo districts 91 [11] Chuo-ku 8% 65 [6] 10% 1991-1995 5% 73 [5] 4
Slide 43: Office vacancy and rent by ward
Chiyoda-ku Chiyoda-ku 150.0 12.0 Chuo-ku Chuo-ku Minato-ku 140.0 Minato-ku 10.0 Shinjyuku-ku Shinjyuku-ku 135.2 Shibuya-ku 130.0 Shibuya-ku 131.4 8.0 8.05 125.8 6.68 122.8 6.0 6.32 120.0 118.3 5.41 4.51 110.0 4.0 100.0 2.0 90.0 0.0 12/1 13/1 14/1 15/1 16/1 17/1 18/1 19/1 20/1 21/1 12/1 13/1 14/1 15/
Slide 44: Commercial facilities
| Commercial facilities | As of the end of June 2021 Developing commercial facilities in convenient areas, primarily in the Tokyo metropolitan area and the Kinki area. (Features of our commercial facilities» Locations that are commercially busy and convenient in terms of transportation Other Area: 1
Slide 45: Transition in total floor area and AUM
| Transition in total floor area and AUM transition | Both total floor area and AUM are steadily expanding. {Total floor area) <AUM) Thousand ni 2,000 + syeas ¥billion 1,530.9 = Commercial facilities Benn Private REITs, etc. 1,467.2 F @ Office buildings 1,617 1,617 m CRR*** 1.484 mw API** 1,251.9 15
Slide 46: Business areas and proposals
Commercial facilities Proposals for Hotels Play Styles Proposals for Golf courses Play Styles Ski resorts Proposals for Proposals for Home Styles Work Styles Condominiums Office Proposals for Proposals for Detached Home Styles Work Styles Buildings Houses * From the 2019 Integrated Report
Slide 47: Workspace types
City center Suburban area Local area Exclusive space Membership space Shared space Residential space
Slide 48: Development of Business to Address Social Issues
| Development of Business to Address Social Issues | (Initiatives in Wellness and Tokyu Hands segments) Assuming the new normal, the Group promoted new initiatives in the Wellness segment and structural reform in the Tokyu Hands segment. <Wellness segment> Strengthening the capture of domestic deman
Slide 49: Major office buildings
| Major office buildings | As of the end of June 2021 The Group holds 55 buildings, located mainly in four wards in central Tokyo. Totalfloor er Mejor artis blll Shibuya Dogenzaka Tokyu 1983 Unosawa Tokyu 1984 6 Shibuya Shin-Minamiguchi 2000 7 Ebisu Business Tower 2003 23 Shibuya-ku 20 Shibuya Squar
Slide 50: Major commercial facilities
| Major commercial facilities | As of the end of June 2021 The Group operates 24 locations in the Tokyo area and 7 locations in Kansai and other regions. AA No. of Major properties veaplauitte Total floor Remarke facilities [Commercial facilities] space * Tokyu Plaza Kamata 1968 Tokyu Plaza Akasaka
Slide 51: Major renewable energy facilities
| Major renewable energy facilities | As of the end of June 2021 The Group is advancing businesses through 56 solar power generation projects, 10 wind power generation projects and 1 biomass power generation project. Solar Power In Plant . operation Wind Power Plant Suzuran Kushirocho ReENE Aomori S
Slide 52: Major operating facilities
| Major operating facilities | As of the end of June 2021 The Group operates 58 hotels, 8,054 rooms facilities Teteshina Hakone Myojindai Urabandai Grandeco Kyoto Takagamine Katsura Madarao Nasu VIALA annex Kyoto Takagamine os 3750 Hamanako Tateshina Annex Kyu Karuizawa Annex Nasu Retreat , 'Amagi K
Slide 53: Slide 53
Tokyu Fudosan Holdings — Q1 FY2021 Earnings Presentation on 6ix