Tobu Railway : Revision to Matters Including a Target Figure in the Long-Term Management Vision

11

April 30, 2025

Company name: TOBU RAILWAY CO., LTD.

Name of representative: Yutaka Tsuzuki, President and

Representative Director (Securities code: 9001; Tokyo Stock Exchange Prime Market)

Inquiries: Satoru Kaneko, Corporate Planning Department Manager

(Telephone: +81-3-5962-2057)

TOBU RAILWAY CO., LTD. (the "Company") hereby announces that the Company, at the Board of Directors meeting held today, resolved to revise maters including a target figure set forth in the Long-Term Management Vision.

In FY2024, the Tobu Group formulated a new Long-Term Management Vision: "Evolving Society and Areas along our Railway Lines by Taking on Challenges and Engaging in Cooperative Creation," with an aim for achieving operating profit of ¥80.0 billion in FY2033.

Operating profit for FY2024 significantly exceeded the initial forecast and reached a record high level. This was attributable to a combination of favorable external factors, such as strong inbound tourism demand and a recovery in the flow of people, and internal factors, such as the effects of structural reforms and a pricing strategy emphasizing unit prices. The external environment going forward is expected to continue to see strong inbound tourism demand; however, this will be affected by rising prices, labor costs, and interest rates, as well as intensifying labor shortages. Even in this environment, we believe that further growth is attainable through the full-scale implementation of the tourism business and area development projects, which have been designated as growth areas, and the steady progress of large-sale projects, such a two-way through service between TOBU SKYTREE Line and Tokyo Metro Yurakucho Line.

In light of the current earnings performance and the outlook for the completion of large-scale projects, we have raised the target figure in the Long-Term Management Vision under a revised timeframe.

Please see the attachment for an outline of the latest revision.

Attachment

1. Revised target figure and timeframe set forth in the Long-Term Management Vision

   	Target figure	Timeframe
   After revision	¥100.0 billion or more	Mid-2030s
   Before revision	¥80.0 billion	FY2033

2. Reasons for the revision

   We have revised our target figure and timeframe by considering the following factors:

   • Robustness of our current earnings performance and strong momentum in tapping tourism demand

   • Outlook for projects in the tourism area, such as hotel construction

   • Advancement of area development projects, such as redevelopment of the Oshiage area

   • Decision to launch a two-way through service between TOBU SKYTREE Line and Tokyo Metro Yurakucho Line

3. Approach to achieving the Long-Term Management Vision

To achieve the Long-Term Management Vision, we have established the following three strategic management policies: (1) Increasing percentage of non-railway businesses in operating profit stage;

(2) Strengthening profitability by capturing tourism demand; and (3) Establishing sustainable business management structure. With these policies in place, we will grow the entire group with a strategic focus on the tourism business and development business (area development). We will continue to promote each business based on these policies and strategy.

Reference material

Achieve operating profit of ¥100.0 billion or more in the mid-2030s by accelerating the growth areas of tourism and area development businesses and implementing new measures such as a two-way through service with Tokyo Metro Yurakucho Line

Target

¥100.0 billion+

(Up ¥20.0 billion from the target as previously announced)

¥67.2

billion

¥73.8

billion

¥74.6

billion

¥62.6

billion

¥56.6

billion

¥24.7

billion

¥(13.5) billion

Mid-2030s

(previous disclosure

Long-Term Management Vision

Evolving Society and Areas along our Railway Lines by Taking on Challenges and Engaging in Cooperative Creation

Challenging

pursuit of adapting to changing business environment

and needs

Co-creation

of value through collaboration and

partnership with stakeholders

Management strategies and policies for

realizing the Vision

1. Increasing the percentage of non-railway businesses in operating profit stage

2. Strengthening profitability by capturing tourism demand

3. Establishing sustainable business management structure

Focused investment in tourism and development (area development)

FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

FY2033)

¥30.0

billion to

¥32.0

billion

¥12.0 billion

to

¥13.0 billion

¥25.0

billion to

¥27.0

billion

¥18.0 billion

to

¥22.0 billion

¥5.0 billion to ¥10.0 billion

New

Businesses/ M＆A

Real Estate

Leisure

Retail Distribution, Other

Growth driver businesses

Cultivate new businesses (e.g. making SAKULaLa profitable), and consider M&A in growth areas

Growth driver businesses, foundational businesses

Growth: Accelerate development of areas with future growth potential, such as Oshiage and Nishiarai

Foundational: Secure stable cash flow through real estate leasing

Growth driver businesses

Develop hotels in major cities in Japan, expand businesses in the Nikko area, and expand profit by changing Tokyo Skytree prices

Co-creation and strategically selected businesses

Retail distribution: Pursue efficiency and co-creation capabilities in business formats and locations; Expand profit accumulation by strengthening the card business Other: Expand profit by winning more orders and passing on costs

FY2024

FY2024 results

Mid-2030s

Transportation

Foundational businesses

Promote automation and save manpower using digital technology, invest in comfort and convenience, and revise fares to quickly address labor shortages, thereby ensuring business sustainability

Mid-2030s

Construction Opening

Construction Opening

Tourism

Construction Grand reopening

Construction

Opening

Akechidaira Ropeway renovation, functional improvements to Chuzenji Onsen Bus Terminal

Construction

Staggered openings

Plan

Construction

Completion

Area development

Plan

Construction

Completion

Construction

Completion

Construction

Staggered completion

Services begin

Railway

Development and introduction of new limited express trains

SKYTREE Local Line

Urban Park Line Expansion in phases to all lines

Daishi Line demonstration, possible use for the Kameido Line Gradual expansion

SAKULaLa

Railroad gates, hotels 100 FamilyMart stores Locations along the lines and beyond

20 million users

Nihonbashi 3-chome [Hotel]

Ginza 7-chome [Hotel] Nikko Kanaya [Hotel] Osaka, etc. [Hotel]

Business expansion in the Nikko area

TOKYO SKYTREE Station. underpass development, TOKYO Solamachi floorspace expansion

Mukojima 1-chome [Redevelopment]

Oshiage 1-chome [Redevelopment]

Nishiarai Station west exit development Ikebukuro Station west exit [Redevelopment] Around Tobu-Utsunomiya Station

Two-way through service with Tokyo Metro Yurakucho Line Development of new express trains

One-man operation

Automated operation Merchant expansion

Area development centered on the west extension of the Utsunomiya Light Rail

2030年代半ば

まちづくり