Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — FY2020 Earnings Presentation
58 slides from Tokyu Fudosan's earnings presentation, May 2021
Slide 1: Financial Highlights FY2020 Ended Mar-31, 2021
Securities Code : 3289 Financial Highlights FY2020 Ended Mar-31, 2021 @ TOKYU FUDOSAN HOLDINGS WE ARE GREEN Create Value for the Future
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 Results of the Fiscal Year Ended March 31,2021 °* * °° 3 * Forecast for the Fiscal Year Ending March 31, 2022 0000 0 ill ¢ Reference eee 2 6 39 © TOKYU FUDOSAN HOLDINGS CORPORATION 2. SESS
Slide 4: Overview of Results of the Fiscal Year Ended March 31, 2021
Overview of Results of the Fiscal Year Ended March 31, 2021 © TOKYU FUDOSAN HOLDINGS CORPORATION 3 SESS
Slide 5: FY2020 Highlights
| FY2020 Highlights | Both revenues and profits for FY2020 decreased given the strong impact of COVID-19. Topics Contents Operating profit 56.5 billion yen Results surpassed the forecasts the Group had announced in November 2020 due to (compared with forecast +12.5 billion yen) the favorable perform
Slide 6: FY2020 Operating Results
| FY2020 Operating Results | Both revenues and profits for FY2020 declined under the strong effects of COVID-19 (estimated at approx. 30 billion yen). (billion) FY2019 FY2020 lg pores . Compared to the same period Mar-2020 | Mar-2021 ‘omparis orecast omparison lesion Operating revenue 963.2 907.7 (5
Slide 7: Asset, inventory and interest-bearing debt breakdown
(Unit: ¥ billion) 〈Asset breakdown by segment〉 〈Inventory breakdown〉 〈Interest-bearing debt breakdown〉 Real Estate Agents Innovation Others Short-term borrowings Tokyu Hands 32.9 99.2 business 2% 15.1 3% 43.8 Current portion of Innovation Business 2% 15.4 bonds payable Property 134.8 Wellness Curren
Slide 8: FY2020 Management Indicators and Cash Flow Statement
| FY2020 Management Indicators and Cash Flow Statement | Results for respective items fell year on year due to performance aggravation, although they improved from forecasts. FY2019 FY2020 FY2020 Compared to the same period (¥ billion) Comparison Comparison Mar-2020 | Mar-2021 Forecast last year Tot
Slide 9: 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 10: FY2020 Segment performance
| FY2020 Segment performance | Urban Development/Residential/Property Management/Real Estate Agents Full-year FY2019 Comparison| Compared to the end of the previous fiscal year Operating revenue 292.6) 304.9 12.3 Leasing (Office buildings) 40.5 46.1 5.7 Newly operated +11.0, Lost revenue for propert
Slide 11: FY2020 Segment performance
| FY2020 Segment performance | Wellness/Tokyu Hands/Innovation Business Full-year (¥ n) FY20: Comparison] Compared to the end of the previous fiscal year poet Comparison] Operating revenue 114.5 87.6| (26.8) 90.0) (2.4) Pano andl xq (11) ES shorter opening hours and lower occupancy of mad (10) Oasis
Slide 12: Forecast for the Fiscal Year Ending March 31, 2022
Forecast for the Fiscal Year Ending March 31, 2022 © TOKYU FUDOSAN HOLDINGS CORPORATION 11 nnn nnn nnncccccncnnnncnnnnnnnnnnnnnnnnnnnnneneneeeeeeee ener errr eee eee
Slide 13: FY2021 Highlights
| FY2021 Highlights | Increases in both revenues and profits are planned for FY2021 based on the assumption that results will recover to a certain extent from the effects of COVID-19. Topics Contents Greetineioreneasotolor lenhen The impact of COVID-19 will remain, but a return to levels before (com
Slide 14: Recognized Conditions for Main Businesses in FY2021
| Recognized Conditions for Main Businesses in 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 observed. However,
Slide 15: FY2021 Earnings Forecasts / Major Management Indicators
| FY2021 Earnings Forecasts / Major Management Indicators | Aim at achieving a substantial profit recovery, assuming results will recover from COVID-19’s effects to a certain extent. FY2020 FY2021 Results Forecast Operating Revenue 907.7 1,040.0 132.3 Operating profit 56.5 80.0 23.5 Non-operating in
Slide 16: 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. Urban Development Residential Property Management Real Estate Agents Wellness Tokyu Hands Innovation Busi
Slide 17: Urban Development FY2021 Forecast
| Urban Development @ FY2021 Forecast | Increases in both revenues and profits are planned, assuming factors, including the full-year operation of new facilities at TOKYO PORTCITY TAKESHIBA and increases in revenues from the sale of assets and the number of condominium units sold. Full-year (¥ billi
Slide 18: Urban Development Vacancy Rate and Rent
| Urban Development @ Vacancy Rate and Rent | As of March 31, 2021, Average office rent 28,180 yen (Month/Tsubo) Vacancy rate 1.3% (Tenants actually moving in and out, including Office buildings and Commercial facilities) (¥/Month/Tsubo) mus Tsubo = 3.3m ey 10% ¥25,000 8% ¥20,000 6% ¥15,000 A% ¥10,0
Slide 19: Major projects schedule
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 20: Urban Development Major projects (Greater Shibuya area)
| Urban Development @ Major projects (Greater Shibuya area) | Several projects are ongoing in the Greater Shibuya area. Harajuku Sta © Redevelopment Project © Commercial facility © Office building © Properties owned by Activia Properties Inc. © Propertiesjoint capital investment with Norges Bank Red
Slide 21: Urban Development Condominium index
| Urban Development © Condominium index | The contract ratio at the beginning of FY2021 was 54%. 'No. of units sold 1,680 1,777 2,290 Contracted ratio a 54% 66% 82% 90% 50% 57% 76% 93% 54% (Beginning-of-year>1Q2Q3Q) Year-end inventory of completed units* 453 827 - BRANZ Kawaguchi Honcho Kosugi 3rd A
Slide 22: Strategic Investment FY2021 Forecast
| Strategic Investment @ FY2021 Forecast | A rise in revenues and a fallin profits are forecast with a drop in fee income from infrastructure and industry businesses and an increase in sales of logistics facilities. Full-year (¥ billion) FY2020 FY2021 Comparison Compared to the end of the previous f
Slide 23: Strategic Investment Renewable energy business
| Strategic Investment @ Renewable energy business | R€ENE >>> REE) waremomsnecsey-eacosa) MeCMaTomP Sepp The number of operating properties has increased, and it has grown to make a stable contribution to earnings. Projects acquired (As of March 31, 2021) Properties in operation : 38 (solar power g
Slide 24: Strategic Investment Renewable energy business
| Strategic Investment @ Renewable energy business | Business expansion is expected to continue with solid business promotion for committed properties and the aggressive acquisition of new projects. (Investments in properties in operation, «Major projects) Investments in properties made decision, an
Slide 25: 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 Mar-31, 2021) Introduction of future projects Properties in operation: 4 Projects under development: 9 CPD
Slide 26: Strategic Investment Overseas operations
| Strategic Investment @ Overseas operations | 15 projects are in progress in the United States. «425 Park Avenue) NewYork Office building redevelopmentproject 47 stories above ground with 2 basements Completed in January 2021 <America) New York(1) . e San Francisco(2) Washington DC(1) OD e e Los An
Slide 27: Property Management & Operation FY2021 Forecast
| Property Management & Operation @ FY2021 Forecast | Both revenues and profits are forecasted to rise year on year, even though the impact of COVID-19 will linger in the Wellness and Tokyu Hands businesses. Full-year (¥ billion) FY2020 FY20: Comparison Compared to the end of the previous fiscal yea
Slide 28: 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 f
Slide 29: Hotel 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 30: Real Estate Agents FY2021 Forecast
| Real Estate Agents @ FY2021 Forecast | Both revenues and profits are expected to increase year on year, mainly supported by lively markets for the real estate sales agent business. Full-year (¥ billion) FY2020 FY2021 Comparison Compared to the end of the previous fiscal year Operating revenue 212.
Slide 31: Real Estate Agents Performance indicators in sales agent
| Real Estate Agents @ Performance indicators in sales agent | The number of transactions fell in FY2020 under the effects of business suspension. Aim at achieving levels higher than FY2019 results in FY2021. FY2020 Highlights Retail Total No. of transactions 24,660 975 25,635 ORetail (Rate of chang
Slide 32: Real Estate Agents 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 : — (Units: thousand] End of FY2017 End of FY2018 End of FY2019 End of FY2020 Plan for FY2021 Rental housing 87 93 99 107 11
Slide 33: Asset breakdown by segment
〈Asset breakdown by segment * 〉 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 34: Financial Capital Strategy
| Financial Capital Strategy @ | Total Liabilities Promote efficient asset turnover and profit generation by closely observing trading markets. 2,652.3 «Changes in gain on sales) [¥billion] mam Revenue from properties sold [¥billion] 200 Gross margin Fae 30 150 21.0 20 100 10 50 158.5 t) : 2 0 18/3
Slide 35: Financial Capital Strategy
| 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 TESS ee 2,652.3 billion yen Net assets 608.7 mam Equity man Interest-bearing Debt billion yen —®Debt E
Slide 36: Medium-Term Management Plan
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 37: Initiatives for Achieving RE100 Targets
| Initiatives for Achieving RE100 Targets | Tokyu Land Corporation moved substantially the year for achieving RE100 targets forward from 2050 to 2025. «State of initiatives) RE Et) THE CLIMATE GROUP ¥CDP + Tokyu Land Corporation achieved RE100 targets for owned facilities, making the most of self-ge
Slide 38: 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 39: Major ESG initiatives and external evaluations
<Major initiatives> ・E (environmental) Supporting the TCFD recommendations, becoming a member of RE100 ・S (social) Promoting workstyle reform; Start of due diligence for human rights and sustainable procurement policies ・G (governance) Established a Nomination and Compensation Advisory Committee, as
Slide 40: Reference
Reference © TOKYU FUDOSAN HOLDINGS CORPORATION 39 SESS
Slide 41: Enhancing shareholder value and corporate value
Aim at enhancing shareholder value and corporate value by realizing efficiency -conscious profit growth under an optimum financial capital structure. Asset Control Liability and Equity Control Im provi n g E f f i ci e ncy (RO A an d Prof i t Mai n tai n in g Fi n an ci al Di sci pl i n e Margi n )
Slide 42: Trends in business performance
| Trends in business performance | ¥billion term management plan ao mm Operating profit 2017-2020 20.0 mai Profit attributable to owners of parent 90 | —ROE(%) 18.0 —Debt Equity ratio 115 80.2 79.3 80.0 80 : 16.0 73.2 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) ay} 2° ) 0.0 15/
Slide 43: Breakdown of Results by Segment
| Breakdown of Results by Segment | Changes in operating profit by segment lm Urban Development(~2020) mmm Property Management mam Wellness a Mm Tokyu Hands ¥billion lami Innovation business mam Real-Estate Agents 100 mam Residential 68.8 80 63.3 . 7.0 EF 10.2 60 9.4 11 0.9 8.0 40 eat 20 0 (5.7) 5.7
Slide 44: Major Effects the Spread of COVID-19 Caused in FY2020
| Major Effects the Spread of COVID-19 Caused in FY2020 | Operations centered on the BtoC business were severely restricted in the first quarter of FY2020. Conditions in the affected businesses gradually recovered from the second quarter. Se nt Urban Development Effects on businesses Closure of majo
Slide 45: 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% -1980 2% 11 [1] Chiyoda-ku 17 [6] Other metropolitan area 11% 2% 85 [6] 1981-1990 12% 14 [2] Chuo-ku 91 [11] Other Tokyo districts 10% 1991-1995 5% 8% 73 [5] 42 [9] 6
Slide 46: Office vacancy and rent trends by ward
出 Chiyoda-ku Chiyoda-ku 典 150.0 12.0 ： Chuo-ku Chuo-ku 三 鬼 Minato-ku 140.0 Minato-ku 商 10.0 事 Shinjyuku-ku Shinjyuku-ku 136.3 株 134.5 式 Shibuya-ku 130.0 Shibuya-ku 8.0 127.7 会 社 7.30 125.5 120.0 119.8 6.0 5.49 5.33 4.75 110.0 4.0 3.85 100.0 2.0 90.0 0.0 12/1 13/1 14/1 15/1 16/1 17/1 18/1 19/1 20/1 2
Slide 47: Commercial facilities
| Commercial facilities | As of the end of March 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 TOKYU PLAZA Q plaza convenient in terms of transport
Slide 48: Transition in total floor area and AUM transition
| Transition in total floor area and AUM transition | Both total floor area and AUM are steadily expanding. {Total floor area) <AUM) Thousand nit 2,000 ¥billion ; 1,530.9 m= Commercial facilities 1,500 Private REITs, etc. 1,467.2 § Office buildings 1,617 m CRR*** aca maApPI** 1,251.9 1500 458 1,438
Slide 49: From the 2019 Integrated Report
* From the 2019 Integrated Report
Slide 50: Workplace space types by area
City center Suburban area Local area Exclusive space Membership space Shared space Residential space
Slide 51: 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 52: Major office buildings
| Major office buildings | As of the end of March 2021 The Group holds 55 buildings, located mainly in four wards in central Tokyo. Total flo 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 Square 2
Slide 53: Major commercial facilities
| Major commercial facilities | As of the end of March 2021 The Group operates 24 locations in the Tokyo area and 7 locations in Kansai and other regions. Area No. of Major properties Year built Total floor Remarks facilities [Commercial facilities] space * Tokyu Plaza Kamata 1968 Tokyu Plaza Akasak
Slide 54: Major renewable energy facilities
| Major renewable energy facilities | As of the end of March 2021 The Group is advancing businesses through 45 solar power generation projects, 9 wind power generation projects and 1 biomass power generation project. J tye | stows | sine pom nans Suzuran Kushirocho Kushiro-gun Kushiro-cho, Hokkai-do
Slide 55: Major operating facilities
| Major operating facilities | As of the end of March 2021 The Group operates 57 hotels, 7,879 rooms Number oms Teteshina Katsuura Hamanako. Name of fac Hakone Myojindai Madarao Tateshina Annex ies Urabandai Grandeco Nasu Kyu Karuizawa Annex Kyoto Takagamine VIALA annex Kyoto Takagamine Nasu Retreat
Slide 56: Hybrid and sustainability bond issuance
First bond Second Bond （Sustainability Bond） Term 35-year 40-year Total Issue 40 billion yen 30 billion yen Amount Interest rate 1.06% per annum 1.24% per annum Pricing Date December 9, 2020 Issue Date December 17, 2020 Maturity Date December 17, 2055 December 17, 2060 About ６.1 times Demand ratio A
Slide 57: Executive 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 performance evalu
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Tokyu Fudosan Holdings — FY2020 Earnings Presentation on 6ix