Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — FY2021 Q2 Earnings Presentation
63 slides from Tokyu Fudosan's earnings presentation, November 2021
Slide 1: Financial Highlights FY2021 Second Quarter
Securities Code : 3289 WE ARE GREEN Create Value for the Future Financial Highlights FY2021 Second Quarter (First Six Months) Ended September 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 | ° Highlights oeeee 3 ¢ Results of the FY2021 Q2 / Overview of the FY 2021 plan -+*°**+°:- 5 ¢ Reference eee ee 42 © TOKYU FUDOSAN HOLDINGS CORPORATION 2. SESS
Slide 4: FY2021 Q2 / plan for FY2021 Highlights
| FY2021 Q2 (First Six Months) / plan for FY2021 Highlights | Topics Contents The declarations of a state of emergency and the implementation of priority measures to prevent the spread of disease and other matters to prevent the Continued impact of COVID-19 spread of COVID-19 had impacts on faciliti
Slide 5: Forecast for the FY2021
| Forecast for the FY2021 | Despite a downward revision of the forecast for the Management & Operation business segment to reflect the risk of a resurgence of the COVID-19 in the Wellness and Tokyu Hands businesses, operating profit is expected to be 80 billion yen, as initially forecasted, due to i
Slide 6: Results of the FY2021 Q2 / Highlight for the FY 2021 plan
Results of the FY2021 Q2 / Highlight for the FY 2021 plan © TOKYU FUDOSAN HOLDINGS CORPORATION
Slide 7: FY2021 Q2 Operating Results
| FY2021 Q2 (First Six Months) Operating Results | Both revenue and profit increased compared to the same period of the previous year, and various KPIs improved. (¥ bill M2020 m0 Comparison FY2 M0 Progress Forecast Compared to the same period last year Operating Revenue 383.9 411.8 27.9 907.7 1,010.
Slide 8: 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, mainly in the first quarter, but the impact was limited compared with the same period last year. : FY2020 FY2021 Segment/Business Qa Q2 [Metropolitan area] Te
Slide 9: FY2021 Q2 Summary of balance sheets
| FY2021 Q2 (First Six Months) Summary of balance sheets | Increase in real estate for sale due to progress in investments FY2020 FY2021 FY2020 FY2021 (¥ billion) Asof Mar 3h Asof Sep 30 Gemipenizen (¥ billion) Asof Mar 31 Asof Sep 30 Gemipenizen Cash and deposits 190.0 100.2 (89.8) Interest-bearing
Slide 10: Summary of Cash Flows
| Summary of Cash Flows | Progress in investment in inventory and noncurrent assets a; Fy2 FY20. P (¥ billion) a Q Main factors for changes 3 4 +278 billion yen of profit before income taxes Net cash provided by (used in) sw onyene’? a (16.4) (46.1) +21.1 billion yen of depreciation | Gaaetianestivt
Slide 11: FY2021 Earnings Forecasts
| FY2021 Earnings Forecasts | ROE of 5.0%, D/E ratio of 2.4 times planned copa FY2020 FY2021 : Initial Projected Compared to the same period (¥bill Comparison Results orecast Forecast Change last year Operating Revenue 907.7 1,010.0 102.3 1,040.0 (30.0) Operating profit 56.5 80.0 23.5 80.0 = Non-ope
Slide 12: FY2021 Q2 and Forecast Segment performance
| FY2021 Q2 (First Six Months) and Forecast Segment performance | In the second quarter, both revenue and profit decreased from the same period of last year only in the urban development segment due to a decrease in sales, but asset sales progressed steadily. 1. FY20 FY2021 : FY2021 | comparison | C
Slide 13: FY2021 Q2 Analysis of segment performance
| FY2021 Q2 (First Six Months) Analysis of segment performance | +16.5 billion yen compared to the same period last year, +21.6 billion yen before transfer of loss on COVID-19 + Property Management segment +1.9 billion yen: +2.7* billion + Increase in real estate sales agent sales due to COVID-19 +
Slide 14: FY2021 Earnings Forecasts Analysis of segment performance
| FY2021 Earnings Forecasts Analysis of segment performance | +23.5 billion yen compared to FY2020, +28.6 billion yen before transfer of loss on COVID-19 + Wellness business +4.7 billion yen: +6.1* billion yen + Tokyu Hands segment +1.2 billion yen: +2.8 billion yen + Property Management segment +3.
Slide 15: Urban Development FY2021 Q2
| Urban Development @® FY2021 Q2(First Six Months) | Q2: Decreases in both revenue and profit FY2021: Increases in revenue and profit due to sales of office buildings and commercial facilities, etc. Second Quarter FY2020 FY2021 : . (¥billion) Q @ ‘omparison| Compared to the same period last year Ope
Slide 16: Urban Development Vacancy Rate and Rent
| Urban Development @ Vacancy Rate and Rent | As of September 30, 2021, Average office rent 28,360 yen (Month/Tsubo) Vacancy rate 1.1% (Tenants actually moving in and out, including Office buildings and Commercial facilities) Vacancy Rate Rent (¥/Month/Tsubo) Wi Tsubo = 3.33 ¥30,000 0 0 p P 10% ¥25,
Slide 17: FY2020 Or Before FY2021
FY2020 Or Before FY2021 FY2022 FY2023 After FY2024 Jingumae 6-chome Block Urban 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. Harajuku © Redevelopment Project © Commercial facility © Office building © Properties owned by Activia Properties Inc. © Propertiesjoint capital investment with Norges Bank Redevel
Slide 19: Urban Development Condominium index
| Urban Development © Condominium index | Contract ratio at the end of second quarter compared with condominium sales forecast in the fiscal year ending March 2022: 89% No. of units sold 1,680 1,777 2,082 Contract obtaining rate 54% 66% 82% 90% 50% 257% 76% 393% 54% 68% 289% (Beginning-of-year>1Q>20
Slide 20: Strategic Investment FY2021 Q2
| Strategic Investment @ FY2021 Q2(First Six Months) | Q2: Increases in both revenue and profit FY2021: Increases in both revenue and profit due to sales of logistics facilities and increase in operation of renewable energy facilities Second Quarter FY2020 FY2021 : Compared to the same period last y
Slide 21: Strategic Investment Renewable energy business
| Strategic Investment @ Renewable energy business | R€ENE >>> REE) waremomsnessey-eacosa) Meco Scop The number of operating properties has increased, and it has grown to make a stable contribution to earnings. Projects acquired (As of September 30, 2021) Properties in operation : 48 (solar power ge
Slide 22: Investment amount and operating property transition
Investment amount and operating property transition Major projects (100% stake in the Group)
Slide 23: Strategic Investment Logistics facilities business
| Strategic Investment ©@ Logistics facilities business | lili LOGV’'Q Cyclical reinvestments will be executed aggressively with a series of development projects starting operation. Projects acquired (As of September 30, 2021) Introduction of future projects Properties in operation: 5 Projects under
Slide 24: Strategic Investment Overseas operations
| Strategic Investment @ Overseas operations | 16 projects are in progress in the United States. As of September 30, 2021 «425 Park Avenue) NewYork Office Building Redevelopment Project 47 stories above ground with 2 basements Completed in January 2021 My Portland(1) New York(1) . e San Francisco(2)
Slide 25: Property Management & Operation FY2021 Q2
| Property Management & Operation @ FY2021 Q2(First Six Months) | Q2: Increases in both revenue and profit FY2021: Profit decreased from the initial forecast, but revenue and profit increased from the previous fiscal year due to easing of the Impact of COVID-19. Second Quarter FY2020 FyY2021 i ‘, (¥
Slide 26: 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 27: Property Management & Operation Main projects and Operating ratio
| Property Management & Operation @ Main projects and Operating ratio | ROKU KYOTO, LXR Hotels & Resorts opened in September, and sales of Harvest Club memberships are progressing steadily. Tokyu Harvest Club VIALA Kinugawa Keisui Membership resort hotel Open in December 2022 (plan) Tokyu Stay ROKU
Slide 28: Property Management & Operation New Initiatives in COVID-19
| Property Management & Operation @ New Initiatives in COVID-19 | Promote new initiatives in the management and operation business based on the premise of coexistence with COVID-19 Tokyu Stay Shinjuku EastSide (Opened in August 2021) < Providing contactless services > Unmanned front desk and checkro
Slide 29: Real Estate Agents FY2021 Q2
| Real Estate Agents @ FY2021 Q2(First Six Months) | Q2: Increases in both revenue and profit FY2021: Increase in both revenue and profit due to due to an increase in the number of brokerages volo) — = Compared to the same period last year Operating revenue 96.9 117.7 20.8 {Operating profit] Real es
Slide 30: Real Estate Agents Performance indicators in sales agent
| Real Estate Agents @ Performance indicators in sales agent | Number and amount of transactions increased in both retail and wholesale in the second quarter FY2021 Q2 Retail Wholesale Total Highlights Rate of change YoY No. of transactions 13,685 544 14,229 ORetail (units) +22.0% +28.6% +22.3% + Bo
Slide 31: 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 . ss _ , _ a 18/3 19/3 20/3 21/3 21/9 22/3 Plan [Units: thousand] 87 93 99 107 113 116 (Change from the end of preceding fis
Slide 32: Asset Control, Liability and Equity Control
Asset Control Liability and Equity Control • • • • • • • • • • •
Slide 33: Asset breakdown by segment
〈Asset breakdown by segment 〉 *As of September 30, 2021 Real Estate Agents 187.5 Property Management & Human capital Operation utilization Urban 434.7 622.2 Development 1,614.1 Total assets （Before adjustments） 2,676.7 Asset utilization 2,054.5 Strategic Investment 440.4
Slide 34: Financial Capital Strategy: asset turnover
Total assets | Financial Capital Strategy @ | 1,982.5billion Total Assets Promote efficient asset turnover and profit generation by closely observing trading markets. 2,606.7 “ billion yen Net assets 624.3 «Changes in gain on sales) « Major real estate sold ) billion yen [¥billion] [¥billion] 200 mm
Slide 35: Financial Capital Strategy: financial discipline
Total assets 2, 7 billion yen TEESE = 2,606.7 billion yen Net assets | Financial Capital Strategy ® | Maintain financial discipline by executing hybrid financing and taking other steps. 624.3 mam Equity mam Interest-bearing Debt piliory sty —eDebt Equity ratiio -e Debt/EBITDA ratio [¥billion] 1,600
Slide 36: Dividends
[Yen] [Yen] * Dividends before interim dividends for the fiscal year ended March 2014 are those paid by Tokyu Land Corporation.
Slide 37: 10.0 billion/5% 40.0 billion /14％
70% 50% 10.0 billion/5% 40.0 billion/14％
Slide 38: Issuance of sustainability-linked bond
| Issuance of sustainability-linked bond | Issuance of sustainability-linked bond as the first step of the WE ARE GREEN Bond Policy « Outline of sustainability-linked Bond (The 26th Unsecured Corporate Bond) > Term 10-year Issue Amount 10 billion yen Interest rate 0.300% per annum (Pricing Date: Oct
Slide 39: Efforts for the international agreement for a decarbonized society
| Our efforts in relation to the international agreement for the realization of a decarbonized society | International Agreement Paris Agreements PARIS 2015 Temperature increase target +2°C UN cURATE GUNG CONFERENCE Target of effort+1.5°C (Pre-industrial Comparison) A Support for the realization of
Slide 40: ESG external evaluations
●Selected - Not selected / No evaluation
Slide 41: Roadmap for Value Creation through DX
| Roadmap for Value Creation through 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 expon
Slide 42: DX Case Study
| DX Case Study | Business process reform is underway Al assessment (real estate agent business) Property Property Introduction 4 Introducing Al to prospective buyers of condominiums and Lcoscisctionad” (Recommendations) 4 | _ ensuing J |_Purchase 2 . ; ; . e se] N introducing Al to price and rent a
Slide 43: Reference
Reference © TOKYU FUDOSAN HOLDINGS CORPORATION 42 SESS
Slide 44: Recognized Conditions for Main Businesses
| Recognized Conditions for Main Businesses “the 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 45: Trends in business performance
| Trends in business performance | ¥billion 100 | ms Operating profit p 20.0 mam Net income 90 | —ROE(%) + 18.0 —Debt Equity ratio 775 80.2 79.3 80.0 80 : + 16.0 70 | 14.0 60 + 12.0 50 + 10.0 40 + 8.0 30 6.0 20 + 4.0 10 yee [20 0 0.0 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 * ‘Net income’ was replace
Slide 46: Breakdown of Results by Segment
| Breakdown of Results by Segment | Changes in operating profit by segment ¥billion 100 80 60 40 20 mm Urban Development(~2020) lm Property Management mam Wellness Mm Tokyu Hands mam Innovation business lam Real-Estate Agents mam Residential (5.7) (0.6) 15/3 eal 16/3 17/3 18/3 80.2 5.4 113.9) 8.6 (7
Slide 47: 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 48: 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 49: Office portfolio by area and completed year
〈Area〉 〈Completed year〉 Metropolitan 4districts After 2011 674 thousand ㎡（90%） 45 buildings 336 thousand ㎡（45%） 9 buildings Kansai 1% -1980 2% 11 [1] 17 [6] Other metropolitan area 1% Chiyoda-ku 1981-1990 10% 7 [1] 77 [9] 11% 85 [6] 1991-1995 6% Other Tokyo districts Chuo-ku 42 [9] 7% 56 [5] 10% 73
Slide 50: Office vacancy and rent trends 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 134.6 Shibuya-ku 8.68 130.0 Shibuya-ku 8.0 127.4 124.1 6.75 120.5 6.0 6.13 120.0 117.5 5.60 4.61 110.0 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 51: Commercial facilities
| Commercial facilities | As of the end of September 2021 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 convenient in terms of transportation Other A
Slide 52: Transition in total floor area and AUM transition
| Transition in total floor area and AUM transition | Urban Development Segment: Both total floor area and AUM are expanding. {Total floor area) Thousand nt 2,000 = Commercial facilities B Office buildings 1,484 1,500 1,438 1,427 1,000 500 18/3 19/3 20/3 * As of September 30, 2021 1,617 21/3 1,588 2
Slide 53: 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.
Slide 54: Commercial facilities Hotels
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 55: City center Exclusive space
City center Suburban area Local area Exclusive space Membership space Shared space Residential space
Slide 56: 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 in Tokyu Land Corporation) + Achieved RE100 targets for owned facilities, making the most of self-generated renewable energy an
Slide 57: 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 58: 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 Approach to fluctuation performance Linked to sto
Slide 59: Major office buildings
| Major office buildings | As of the end of September 2021 The Group holds 52 buildings, located mainly in four wards in central Tokyo. No. of P : ah : wilh Major properties [Building] Shibuya Dogenzaka Tokyu 1983 Unosawa Tokyu 1984 Shibuya Shin-Minamiguchi 2000 Ebisu Business Tower 2003 Shibuya-ku
Slide 60: Major commercial facilities
| Major commercial facilities | As of the end of September 2021 The Group operates 23 locations in the Tokyo area and 7 locations in Kansai and other regions. No. of Major properties : [Commercial facilities] Veer Total flo space * 28 Tokyu Plaza Kamata 1968 Tokyu Plaza Akasaka 1969 21 Shibuya BE AM
Slide 61: Major renewable energy facilities
| Major renewable energy facilities | As of the end of September 2021 The Group is advancing businesses through 57 solar power generation projects, 10 wind power generation projects and 1 biomass power generation project. PSUS ETE testis EY Suzuran Kushirocho Kushiro-gun Kushiro-cho, Hokkai-do 92.2
Slide 62: Major operating facilities
| Major operating facilities | As of the end of September 2021 The Group operates 61 hotels, 8,405 rooms Name of facilities TTeteshina Hakone Myojindai Urabandai Grandeco Kyoto Takagamine Katsura Madarao Nasu VIALA annex Kyoto Takagamine Hamanako Tateshina Annex Kyu Karuizawa Annex Nasu Retreat Toky
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Tokyu Fudosan Holdings — FY2021 Q2 Earnings Presentation on 6ix