TOKYU FUDOSAN HOLDINGS 2017 Integrated Report

2017 Integrated Report

Tokyu Fudosan Holdings Corporation

Group Finance Department, Investor Relations

Group Planning Policy Department, CSR Promotion Group http://www.tokyu-fudosan-hd.co.jp/english/

This report uses Forest Stewardship Council (FSCR)-certified paper produced from carefully managed forests.

This report uses ink derived from non-edible plants.

01 TOKYU FUDOSAN HOLDINGS 2017 Integrated Report TOKYU FUDOSAN HOLDINGS 2017 Integrated Report 02

Tokyu Fudosan Holdings Group's Medium- and Long-Term Management Plan

Value Frontier 2020

To Become a Corporate Group that Continues to Create Value

Tokyu Fudosan Holdings Corporation 2017 Integrated Report

TABLE OF CONTENTS

1st Chapter 03

Company Profile

At a Glance 03

Major Business Areas 05

Financial and Non-Financial Highlights 07

Tokyu Group slogan

Toward a Beautiful Age The Tokyu Group

Tokyu Group Philosophy

We hold this philosophy in common as we work together to create and support the Tokyu Group.

Mission Statement:

We will create a beautiful living environment, where each person can pursue individual happiness in a harmonious society.

Management Policy:

Work independently and in collaboration to raise Group synergy and establish a trusted and beloved brand.

  • Meet current market expectations and develop new ones.

  • Manage in harmony with the natural environment.

  • Pursue innovative management from a global perspective.

  • Value individuality and make the most of each person.

Through these means, we will fulfill our corporate social responsibilities.

Guidelines for Action:

Editorial Policy

The Tokyu Fudosan Holdings Group issues integrated reports to provide stakeholders with a better overall understanding of the Group's creation of value through all of its business activities. This report discloses the Group's medium- and long-term management policies and business strategies as well as financial and non-financial data prepared in accordance with the international integrated reporting framework of the International Integrated Reporting Council (IIRC). This fiscal year, the report focuses on the Group's medium- to long- term objectives with an emphasis on identified medium- to long-term materialities and the Medium-Term Management Plan (FY2017- FY2020) prepared to reflect those materialities. For more detailed financial and CSR information, please refer to the Company's website.

Fulfill your responsibilities. Collaborate to enhance each other's abilities. Reinvent yourself with a global awareness.

2nd Chapter 09

A Commitment from Top Management

3rd Chapter 17

The Story of Value Creation

A History of Creating New Value 17

The Value Creation Process 19

Identification of Materialities & Opportunities and Risks 21

Medium-Term Management Plan 23

4th Chapter 27

Value Creation Strategy

Urban Development segment 27

Residential segment 29

Property Management segment 31

Real Estate Agents segment 33

Wellness segment 35

Tokyu Hands segment 37

Innovation Business segment 39

5th Chapter 40

Attributes that Underpin the Group's Efforts to Create Value

A Message from the Chairman of the Board of Directors 40

Roundtable Discussion with Independent Outside Directors 41

ESG Management 43

Corporate Governance 44

Work Style Reforms 49

Social Needs 50

Environment 51

Executive Board 53

Independent Verification 56

Major Financial/Non-Financial Data 57

Consolidated Financial Statements 59

Corporate Data/Stock Information 93

Investor Relations Information

http://www.tokyu-fudosan-hd.co.jp/english/ir/

CSR information

http://www.tokyu-fudosan-hd.co.jp/english/csr/

Note on 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, the statements herein do not constitute assurance regarding actual results by the Company. Actual performance may significantly differ from these forecasts due to various factors in the future.

01 TOKYU FUDOSAN HOLDINGS 2017 Integrated Report TOKYU FUDOSAN HOLDINGS 2017 Integrated Report 02

1st Chapter

Company Profile

At a Glance

Operating revenue

¥808.5 billion

Market conditions for the real estate market were stable, but gains on the sale of buildings for investors was down, and as a result, operating revenue declined slightly (down 0.9% year on year).

Operating profit

¥73.2 billion

Operating profit was up 6.5% year on year. Profit from condominiums increased and the Real Estate Agents and the Wellness business- es performed well, resulting in higher profits for the fifth consecutive year, and the target of 73 billion yen set in the Medium-Term Management Plan was achieved.

Profit attributable to owners of parent

¥31.5 billion

Profit attributable to owners of parent was up 9.7% year on year. This was the fourth consecutive increase and the first time in five years that this figure exceeded 30 billion yen.

Business Segment

Company Profile

Core Businesses

No. of customers

Approx. 10 million

The Group's wide-ranging business activities, which include the purchase of condomini- ums, resort and sports facility management, and Tokyu Hands membership programs, continue to attract a large customer base.

No. of Group employees

20,421

As a result of the acquisition of the National Students Information Center in fiscal year 2016 and other factors, the number of group employees increased.

Percentage of full-time employees who are female

27%

Various viewpoints are essential for maintain- ing a high level of competitiveness as a business enterprise, and consequently, the Group encourages diversity in its workforce including increased employment of women.

Innovation Business

6.0%

Asset Utilization Type Business

Innovation and Reinforcement

Urban Development Segment

Office Buildings and Commercial Facilities Floor space

1,458,000 m2

No. of rental housing under management

124,000 units

The Urban Development segment provides optimal services for a variety of needs related to urban real estate such as development and management of office buildings and commercial facilities, complex redevelopment projects, real estate investment trust management, and management of rental housing.

Residential segment

Cumulative No. of condominiums supplied

90,000 units

The Residential segment offers comprehensive support for enriching lifestyles of customers through the sale of high-quality, comfortable residential properties including condominiums and detached housing.

Stock Utilization Type Business

Rapid Growth

Property Management segment

No. of condominiums under management

742,000 units

The Property Management segment plays a vital role in the formation of quality social infrastructure through total support in real estate management, including building and equipment maintenance, operation, and repairs, for condomini- ums, office buildings, commercial and public facilities.

Real Estate Agents segment

Sales agency trading volume

¥1.1 trillion

The Real Estate Agents segment offers comprehensive solutions in real estate transactions, including real estate brokerage, consignment sales, and real estate sales, tailored to diverse customer needs.

Tokyu Hands

11.7%

Urban Development

30.0%

Tokyu Hands segment

No. of stores

Tokyu Hands 46

(Including FC stores and overseas stores)

Under the banner of "its hint market" brand slogan, the Group offers an extensive and diverse range of products and provides hints to discovery unique to Tokyu Hands to customers as a means of helping customers establish their own individual lifestyles.

Mature Markets Growth Markets

Increasing Group Added Value

New Core Business

Wellness segment

Wellness

11.4%

Fiscal 2016 Percentage of Operating Revenue

(Excluding Elimination/Headquarters)

No. of facilities

161

Future Growth Drivers

The Wellness segment helps customers create a wealth of high-quality time through cross-business collaboration in the fields of leisure, health and senior citizens by developing and managing resorts, leisure facilities, sports clubs and senior housing.

Real Estate Agents

9.9%

Innovation Business segment

Overseas Business Development

United States Indonesia China

The Innovation Business segment develops overseas businesses, and creates and promotes new business fields, such as custom-built houses, renovation projects and greenification.

Residential

13.1%

Property Management

17.9%

Strategic Business

03 TOKYU FUDOSAN HOLDINGS 2017 Integrated Report TOKYU FUDOSAN HOLDINGS 2017 Integrated Report 04

1st Chapter

Company Profile

Major Business Areas

Commercial facility Tokyu Hands *Excluding FC stores

Overseas Business of the Tokyu Fudosan Holdings Group

Shanghai

(As of March 31, 2017)

Golf course

Resort hotel

Ski resort

Members-only fitness club

Tokyu Hands Sapporo Store

Niseko Mountain Resort Grand Hirafu The Hotel Niseko Alpen

Mongolia

China

Japan

Company Profile

Tokyu Land Corporation Local Subsidiary Tokyu Land Corporation (Shanghai) Ltd. Tokyu Livable, Inc. Local Subsidiary Tokyu Livable (Shanghai) Inc.

Tokyu Hands Nagano Store

Tangram Ski Circus (Madarao)

Tokyu Harvest Club Urabandai Grandeco & Urabandai Grandeco Tokyu Hotel

Grandeco Snow Resort Tokyu Hands Sendai Store

Myanmar

Laos Thailand

Vietnam

Philippines

Palau

Taiwan

Tokyu Livable, Inc. Joint Venture Tokyu Livable (Taiwan) Inc.

Hong Kong

Tokyu Livable Hong Kong Branch

Palau

Palau Pacific Resort

Tokyu Land Corporation Local Subsidiary

Madarao Tokyu Golf Club Tokyu Harvest Club Madarao &

Hotel Tangram (Madarao)

Tokyu Harvest Club Kyu-Karuizawa/Kyu-Karuizawa Annex & Kyu-Karuizawa Hotel

Tateshina Tokyu Ski Resort

Tokyu Harvest Club Tateshina Resort,

Tokyu Harvest Club Tateshina/Tateshina Annex & Tateshina Tokyu Hotel

Tateshina Tokyu Golf Course Tokyu Hands Kanazawa Store

Skijam Katsuyama

Tokyu Harvest Club Nasu

Mt. Jeans Nasu

Nasu Kokusai Country Club

Tokyu Harvest Club Kinugawa

Hunter Mountain Shiobara

Tambara Ski Park

Malaysia

Cambodia Brunei

Indonesia

United States

Mexico

Pacific Islands Development Corporation

Singapore

Tokyu Hands, Inc.

Jurong East Store/Orchard Store/Suntec City Store Tokyu Livable, Inc.

Equity interest in Orange Tee Holdings Pte Ltd.

Jakarta

Tokyu Land Corporation Local Subsidiary PT. Tokyu Land Indonesia

Los Angeles

Tokyu Land Corporation Local Subsidiary Tokyu Land US Corporation

New York

425 Park Avenue Redevelopment Project

Tokyu Harvest Club Skijam Katsuyama

Mochizuki Tokyu Golf Club

Tokyu Hands Okayama Store

Tsukuba Tokyu Golf Club

Metropolitan Area (Tokyo metropolitan area and three adjoining prefectures)

Oita Tokyu Golf Club Aso Tokyu Golf Club

Tokyu Hands Matsuyama Store Tokyu Hands Hiroshima Store Tokyu Sports Oasis Hiroshima Store

Tokyu Hands Oita Store

Sashima Country Club

Tokyu Harvest Club Atami Izusan & VIALA

Tokyu Harvest Club Yamanakako Mount Fuji

Tokyu Harvest Club Ito

Tokyu Harvest Club Amagi Kogen

Amagikogen Golf Course

Tokyu Harvest Club Shizunamikaigan

O ce buildings 55

Commercial facilities 21

Resort hotels 4

Golf courses 7

Senior residences 14

Tokyu Hands stores 17

Members-only fitness clubs 19

Tokyu Stay 17

Tokyu Hands Kumamoto Store Tokyu Hands Hakata Store

Tokyu Hands Kagoshima Store

Tokyu Harvest Club Hamanako Market Square Sasashima

Kansai Area (six prefectures)

O ce buildings 3

Commercial facilities 7

Golf courses 4

Tokyu Hands stores 7

Tokyu Hands Nagasaki Store

Resort hotels 3

Members-only fitness clubs 13

05 TOKYU FUDOSAN HOLDINGS 2017 Integrated Report TOKYU FUDOSAN HOLDINGS 2017 Integrated Report 06

Tokyu Fudosan Holdings Corporation published this content on 01 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 01 September 2017 04:07:03 UTC.

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