Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — FY2023 Earnings Presentation
59 slides from Tokyu Fudosan's earnings presentation, May 15, 2024
Slide 1: Financial Highlights FY2023 Ended March 31, 2024
Securities Code: 3289 Create Value for the Future Financial Highlights FY2023 Ended March-31, 2024 May 15, 2024
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 ｜ ・ Progress of Medium-Term Management Plan and ・・・・・ 5 Initiatives to Enhance Corporate Value ・Summary of the Financial Results for FY2023, and ・・・・・ 14 Forecast for FY2024 ・Segment Overview ・・・・・ 28 ・Co-Creation with Partners initiatives ・・・・・ 48 ・Sustainability and DX Initiatives ・・・・・
Slide 4: Highlights
｜ Highlights ｜ Topics Contents FY2023 Operating Results Contributions from successful asset sales and brokerage, with strong hotel business Operating profit ¥120.2 billion performance driven by robust domestic and inbound demand capture. (YoY+¥9.8 billion) Achieved all financial targets for the medi
Slide 5: 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 5
Slide 6: Progress of Medium-Term Management Plan (Financial Targets)
｜ Progress of Medium-Term Management Plan (Financial Targets) ｜ Achieved all financial targets for the medium-term management plan ending FY2025 two years ahead of schedule FY2022 FY2023 FY2024 FY2025 (Latest (Target) (Result) (Result) (Forecast) forecast) ROE 7.3% 8.9% 9.6% 9.0% 9% Efficiency ROA 4
Slide 7: Progress of Medium-Term Management Plan (Financial Targets) ②
｜ Progress of Medium-Term Management Plan (Financial Targets) ② ｜ 2.5x Achieved two years ahead of schedule ¥150.0 billion 2.3x 2.2x 2.2x or less or more 2.1x 2.1x 2.0x or less ¥130.0 billion ¥120.2 billion ¥120.0 billion ¥110.4 billion 10% or more 9.6％ 9.0％ 9％ ¥83.8 billion ¥75.0 billion 7.3％ or mo
Slide 8: Shareholder Return
｜ Shareholder Return ｜ Shareholder return policy: Payout ratio of 30% or more and maintain stable dividends Annual dividend: FY2023 31.0 yen (YoY 7.5 yen dividend increase), FY2024 32.0 yen planned; continuation of progressive dividends 〈EPS and ROE Trends〉 9.6% [Yen] 100 10% 9.0% EPS (yen) ROE（%） 7
Slide 9: Progress in business portfolio management (FY2021-FY2023)
｜ Progress in business portfolio management (FY2021-FY2023) ｜ Structural reforms of businesses that require fundamentally restructure was completed, with significant profit improvement in the hotel and leisure businesses. Asset-utilizing business Human capital-utilizing business Prior to March 2022
Slide 10: Progress in business portfolio management ②
｜ Progress in business portfolio management② (from FY2023) ｜ For the businesses identified for “revise and advance”, continue to drive transformation and growth, focusing on improving efficiency. Business Business policies and Initiatives While continuing to monitor the impact of decreased tenant in
Slide 11: Regarding the next medium-term management plan
｜ Regarding the next medium-term management plan ｜ The initial year of the next medium-term management plan has been moved up one year to FY2025, and it is to be scheduled to announce in May 2025. GROUP VISION 2030 Create value for the future 2021-2024 2025-2030 Long-term management policy: Long-ter
Slide 12: Changes in Share Price, etc.
｜ Changes in Share Price, etc. (2019.10.1～2024.5.13) ｜ 1,300yen 10.0% Share price BPS FY2023: 9.6% ROE Forecast ROE 1,200yen FY2024 (Forecast) 9.0% 9.0% 1,100yen Share price on May13: 1,146.5yen BPS：1,053.04yen FY2022: 7.3% 8.0% 1,000yen 900yen 7.0% FY2019: 6.7% 800yen FY2021: 5.7% 6.0% 700yen 600ye
Slide 13: Initiatives to enhance corporate value and market valuation
｜ Initiatives to enhance corporate value and market valuation ｜ Aim to enhance corporate value and market evaluation by continuously achieving ROE that exceeds the cost of shareholder equity and promoting initiatives based on the long-term management policy PBR↑ ＝ ROE↑ × PER↑ FY2021 FY2022 FY2023 FY
Slide 14: Summary of the Financial Results for FY2023, and Forecast for FY2024
Summary of the Financial Results for FY2023, and Forecast for FY2024 © TOKYU FUDOSAN HOLDINGS CORPORATION 14
Slide 15: FY2023 and FY2024 Major business environment
｜ FY2023 and FY2024 Major business environment ｜ Being under uncertain conditions, pay close attention to changes in the business environment but assume that there will be no significant environmental changes in the near future. Topics Contents The Shibuya area, where the Company holds numerous prop
Slide 16: FY2023 Operating Results, major index
｜ FY2023 Operating Results, major index ｜ Revenues and profit increase YoY; however, compared to the forecast, revenue decreased while profit increased, and dividends were 3.0 yen higher than the forecast. FY2023 （¥ billion） FY2022 FY2023 Comparison Comparison note Forecast** Operating Revenue 1,005
Slide 17: FY2023 Segment performance
｜ FY2023 Segment performance ｜ Decrease in Urban Development profit compared to the previous period due to reduced asset sales, etc.; however, overall revenues and profit increase YoY due to strong management operations and real estate distribution performance. FY2023 Comparison （¥ billion） FY2022 F
Slide 18: FY2023 Analysis of segment performance
｜ FY2023 Analysis of segment performance｜ Profit increase of 9.8 billion yen YoY, driven by asset sales supported by a robust transaction market and strong performance in the Wellness and Real Estate Agents businesses. ･ Wellness business +9.9 billion yen (Hotel +5.2 billion yen, ski +0.8 billion ye
Slide 19: FY2023 Summary of balance sheets
｜ FY2023 Summary of balance sheets｜ Land and buildings for sale increased mainly 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 Mar-31, 2024 Mar-31, 2023 Mar-31, 2024 Cash and deposits
Slide 20: Asset Breakdown by Segment and ROA Trends
｜ Results for FY2023: Asset Breakdown by Segment and ROA Trends｜ Progress in investments has led to an increase in land and buildings for sale in Urban Development and Strategic Investments businesses 〈Asset breakdown by segment〉 * Excluding elimination 〈Breakdown of Urban Development segment〉 [¥ bi
Slide 21: Market value appraisal for leased properties
｜ Market value appraisal for leased properties ｜ Unrealized gains on rental and other real estate expanded due to the inclusion of Shibuya Sakura Stage and other factors. FY2022 FY2023 （¥ billion） Comparison Remarks Mar-2023 Mar-2024 Carrying Value 732.6 749.5 16.9 □Market value at the end of the fi
Slide 22: FY2023 Summary of Cash flow and Investment plan
｜ FY2023 Summary of Cash flow and Investment plan ｜ Capital investment will focus on renewable energy facilities, and investment mainly in rental housing and logistics facilities （¥ billion） FY2022 FY2023 Main factors for changes Net cash provided by (used in) +103.0 billion yen of profit before inc
Slide 23: FY2024 Forecast Operating Results, major index
｜ FY2024 Forecast Operating Results, major index｜ Plan to achieve record-high revenues and profit FY2024 （¥ billion） FY2023 Comparison note Forecast Operating Revenue 1,103.0 1,130.0 27.0 Operating profit 120.2 130.0 9.8 Non-operating income 4.1 － － Non-operating expenses 13.9 － － Ordinary profit 11
Slide 24: FY2024 Segment performance forecast
｜ FY2024 Segment performance forecast ｜ Continued anticipation of strong real estate sales and residential subdivision market, plans for increased revenues and profit FY2024 （¥ billion） FY2023 Comparison note Forecast Operating revenue 1,103.0 1,130.0 27.0 Urban Development 365.4 371.0 5.6 Strategic
Slide 25: FY2024 Analysis of segment performance forecast
｜ FY2024 Analysis of segment performance forecast｜ Plan to increase profit by 9.8 billion yen YoY due to improved margins for condominiums and increased earnings from hotels and Real Estate Agents business ･Infrastructure & Industry business (7.3) billion yen ･ Property Management business +0.1 bill
Slide 26: Gross profit on sales and land and buildings for sale by assets
｜ Gross profit on sales and land and buildings for sale by assets ｜ Driven by a strong buying and selling market, efficient asset turnover and profit generation are being promoted. Approximately 70% of the projected gross profit for FY2024 is already under contract. 〈Gross Profit from Asset Sales Tr
Slide 27: Financial Condition
｜ Financial Condition ｜ Long-term ratio of interest-bearing debt at the end of FY2023 was 95.8%, and the fixed ratio was 95.5%. Japan Credit Rating Agency, Ltd. (JCR) revised its long-term issuer rating outlook from A (Stable) to A (Positive) (January 2024). Equity Interest-bearing Debt D/E ratio De
Slide 28: Segment Overview
Segment Overview © TOKYU FUDOSAN HOLDINGS CORPORATION 28
Slide 29: Urban Development: FY2023 Results and FY2024 Forecasts
| Urban Development @® FY2023 Results and FY2024 Forecasts | Despite performance changes due to asset sales fluctuations, rental and condominium sales remain strong. FY2023 Results note Operating revenue 346.1) 365.4! 19.3 Urban Development 199.8) 177.2 (22.5) aaa See eee SRD (the sale) 98.2) 73.7 (
Slide 30: Urban Development ②: Vacancy Rate and Rent trends and Portfolio Characteristics
｜ Urban Development ② Vacancy Rate and Rent trends and Portfolio Characteristics ｜ 〈Office Area〉 As of March 31, 2024, vacancy rate remains low at 4.8 % (office buildings and commercial facilities), and average office rent Metropolitan 4 districts at 29,750 yen (month/tsubo) 836 thousand m2 (95%) 43
Slide 31: Urban Development ③: Major projects (Offices/Commercial facilities)
｜ Urban Development ③ Major projects (Offices/Commercial facilities, etc.) ｜ Other projects Chayamachi B-2/B-3 Blocks Redevelopment Project Osaka Commercial/office/accommod ation etc. Total floor space: 31 Scheduled for completion in FY2028 Project for Using Land at Tokyo Institute of Technology’s T
Slide 32: Urban Development ④: Major projects (the Greater Shibuya Area)
｜ Urban Development ④ Major projects (the Greater Shibuya Area) ｜ Several projects, such as Next Shibuya Sakuragaoka Block and Jinnan 1-chome Block, are underway in the The Greater Greater Shibuya Area. Redevelopment Project Commercial facility Shibuya Area Office building Properties owned by Activi
Slide 33: Urban Development ⑤: Major project, Shibuya Sakura Stage
｜ Urban Development ⑤ Major project ～Shibuya Sakura Stage～ ｜ Reprint of Presentation Materials Combined facility for work, living, and play will open sequentially from December 2023. of FY2023 Q3 Scheduled to open in July 2024. ◆Office ◆Commercial Facility ◆Residence ◆Extended stay hotel Advanced of
Slide 34: Urban Development ⑥: Decision to sell a partial interest in Shibuya Sakura Stage
Reprint of ｜ Urban Development ⑥ Decision to sell a partial interest in Shibuya Sakura Stage ｜ Presentation Materials of FY2023 Q3 As part of the "Co-Creation with Partners" business policy, decided to sell the equivalent of 49% co-ownership interest in the sectional ownership of Shibuya Sakura Stag
Slide 35: Urban Development ⑦: Condominium index
｜ Urban Development ⑦ Condominium index ｜ Due to continued solid demand, sales remain steady, and the contract securing rate at the beginning of FY2024 is at a high level of 74%. 〈Major upcoming projects〉 Accounting year FY2022 FY2023 FY2024 Forecast No. of units sold 1,369 1,280 996 Average price p
Slide 36: Urban Development ⑧: Major Large-Scale Residential Projects
｜ Urban Development ⑧ Major Large-Scale Residential Projects ｜ BRANZ TOWER Nihonbashi 1-chome East Funabashi Ichiba-cho Project (tentative Kitanakadori North Higashigotanda 2-3 Nishi-Nippori Station Hashimoto District B-1 Redevelopment District Block Redevelopment Project Address: Sagamihara-shi, na
Slide 37: Strategic Investment: FY2023 Results and FY2024 Forecasts
| Strategic Investment @ FY2023 Results and FY2024 Forecasts | While performance fluctuates due to increases and decreases in the sale of logistics facilities, the renewable energy business is steadily expanding. billion | FY2022, | 2023 | rparison note ie il Results | Results Raycaca || (acest) [bi
Slide 38: 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 March 31, 2024) Portfolio Total properties in operation: 104 Solar Power Plant In operation ● 65 (1,036.
Slide 39: 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 40: Strategic Investment ④: Logistics facilities business
｜ Strategic Investment ④ Logistics facilities business ｜ While increasing asset turnover, the acquisition and leasing of prime location projects are steadily progressing. Projects acquired (As of March 31, 2024) Major projects Properties in operation: 8 Property name Location Total floor area Compli
Slide 41: Strategic Investment ⑤: Overseas operations
｜ Strategic Investment ⑤ Overseas operations ｜ Multiple projects underway in the United States and Asia Status of overseas expansion <425 Park Avenue> New York 21 projects across 8 countries 25 projects across 7 urban regions Office Redevelopment Project In-house development performance: approx. 7,5
Slide 42: Property Management & Operation: FY2023 Results and FY2024 Forecasts
| Property Management & Operation @ FY2023 Results and FY2024 Forecasts | Profit is increasing in FY2023 and FY2024 due to capturing domestic and inbound demand, mainly in the hotel business FY2022 FY2023 «Breakdown of revenues in (¢billion) Comparison note Results | Results - = [¥billion] Operating
Slide 43: Property Management & Operation ②: Stock of properties
｜ Property Management & Operation ② Stock of properties ｜ Rather than relying on profit growth through stock expansion, aim to shift from "quantity" to "quality." Condominium Management Stock Trends Major properties under management Under comprehensive management Under facility management 800,000 30
Slide 44: Property Management & Operation ③: Main projects and Operation status
｜ Property Management & Operation ③ Main projects and Operation status ｜ March 2024 RevPAR at Tokyu Stay reached a record high thanks to inbound demand captured, etc. Tokyu Harvest Club VIALA Grancreer HARUMI FLAG nol hakone myojindai TOKYU Harvest Club VIALA Hakonekoyu Karuizawa Retreat Senior hous
Slide 45: 2,500 32,976 35,000 30,265 28,750 29,577 30,000 26,43725,635 2,000 25,570 24,410 23,278 2,158.4 25,000
2,500 32,976 35,000 30,265 28,750 29,577 30,000 26,43725,635 2,000 25,570 24,410 23,278 2,158.4 25,000 21,939 2,080.1 1,500 19,568 1,821.3 20,000 1,578.0 1,315.6 15,000 1,000 1,211.6 1,315.9 1,010.8 10,000 1,245.5 1,226.5 1,100.4 500 5,000 0 0
Slide 46: Real Estate Agents ②: Performance indicators in sales agent
｜ Real Estate Agents ② Performance indicators in sales agent ｜ FY2023 Retail Wholesale Total Highlights Rate of change YoY No. of transactions 29,038 1,227 30,265 □Retail (units) +2.0% +11.1% +2.3% ・Number of brokerage offices: 219 as of March 31, 2024, with plans to open 8 new offices in FY2024. Am
Slide 47: 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 140 120 149 138 130 100 117 107 99 80 20/3 21/3 22/3 23/3 24/3 25/3 Plan [Units: thousand] 99 107 117 130 138 149 (Change from the end SHINONOME CANAL COURT CODAN
Slide 48: Co-Creation with Partners initiatives
Co-Creation with Partners initiatives © TOKYU FUDOSAN HOLDINGS CORPORATION 48
Slide 49: 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), established renewable energy fund (March 2024) A comprehensive business alliance was formed with the aim of solving social issues through
Slide 50: Sustainability and DX Initiatives
Sustainability and DX Initiatives © TOKYU FUDOSAN HOLDINGS CORPORATION 50
Slide 51: Materiality and KPI
｜ Materiality and KPI ｜ We will aim to achieve non-financial KPI based on materialities Themes to work on (Materialities) Target indicators FY2023 Result FY2025 Targets (FYI)FY2030 Targets ・Customer satisfaction level* 92.8% 90% or more 90% or more Create a variety of ・Products and services that Tot
Slide 52: Sustainability Initiatives
｜ Sustainability Initiatives ｜ We address socioenvironmental issues through our business activities. Tokyu Land Corporation is the first domestic company to achieve “RE100.” (March 2024) At the Company's 204 business locations and owned facilities (including offices, commercial facilities, hotels, e
Slide 53: 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 54: Human Capital Strategy
｜ Human Capital Strategy ｜ We've set human capital KPIs for each strategy. Human capital Measures Human capital KPI FY2023 Results (YoY) Target Outcomes * Results for FY2023 or April 2024 Actual strategies Dissemination 1. Degree of personal investment in achieving 92% (+4) of Group the long-term vi
Slide 55: 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 56: 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 57: 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 (May 2023) The report disclosed our progress in our Group-wide digital transformation Recognized for deepening
Slide 58: Status of dialogue implementation with investors and analysts
｜ Status of dialogue implementation with investors and analysts ｜ We continued engaging with investors and analysts to aid our sustainable growth and build our organization’s value over the long term. Main themes of our dialogue with investors and analysts/ IR events organized main concerns expresse
Slide 59: WE ARE GREEN
WE ARE GREEN @ TOKYU FUDOSAN HOLDINGS
Tokyu Fudosan Holdings — FY2023 Earnings Presentation on 6ix