Toward
Towarda Beautiful
a Beautiful
Age Age
The Tokyu
TheGroup
Tokyu GroupTOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Tokyu
Tokyu
FudosanFudosanHoldings
Holdings
Corporation
Corporation
GroupGroup
FinanceFinance
Department,
Department,
IR Group
IR GroupGroupGroup
Planning
Planning
PolicyPolicy
Department,
Department,
CSR Promotion
CSR Promotion
GroupGroup
http://www.tokyu-fudosan-hd.co.jp/english/
http://www.tokyu-fudosan-hd.co.jp/english/

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

This report uses ink derived from
non-edible plants.

2016
2016
Integrated
Integrated
ReportReportTokyu Fudosan Holdings Group's Medium- and Long-Term Management Plan Vision

To Become a Corporate Group that Continues to Create Value
Value Frontier 2020

Tokyu Group slogan

Toward a Beautiful Age

T h e To k y u G r o u p

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 ina 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.

Adopting a Medium- to Long-Term View toward
the Ongoing Development of the Group’s
Management; Becoming a Corporate Group that
Continues to Create Value
Adapting to changes in each era while grasping the needs of customers, the• Manage in harmony with the natural environment.
• Pursue innovative management from a global perspective.

Tokyu Fudosan Holdings Group is committed to creating new lifestyles and• Value individuality and make the most of each people.

building an affluent society.

Through these means, we will fulfill our corporate social responsibilities.
Guidelines for Action:

A Message from the Chairman

Amid changes in the structure of the world’s population, globalization, andgrowing diversity in people’s values, today’s society is increasingly exhibiting a

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

paradigm shift. Against this backdrop, The Group recognizes the importantneed to organically integrate the track record and know-how of each Group
company while placing considerable emphasis on maximizing Groupsynergies. Drawing on its inherent capital and intrinsic “challenger's DNA”

TOKYU FUDOSAN HOLDINGS

nurtured since its foundation, the Group will continue to help resolve a broad

Tokyu Fudosan Holdings Corporation 2016 Integrated Report TABLE OF CONTENTS
A Message from the Chairman

1s t Chapter02

4th Chapter

03

Strategies for Creating Value

Company Profile
At a Glance
Major Business Areas
Financial and Non-Financial Highlights

2nd Chapter

03
05
07
09

Demonstrating a Recognized Track Record of
Creating New Value
A History of Creating New ValueThe Value Creation Process
Creating Value for Stakeholders
Medium- and Long-Term Management Plan

3rd Chapter

09
11
13
15
17

A Commitment from Top Management

Making the Most of Group Synergies
Urban Development segment
Residential segment
Property Management segment
Real-Estate Agents segment
Wellness segment
Tokyu Hands segment
Innovation Business segment

5th Chapter

spectrum of management and social issues while providing value for its
24

customers.
In order to create value through its business activities and contribute to the

25
27
31
33
35
37
39
41
42

Attributes that Underpin the Group’s Efforts
to Create Value

growth and development of society, the Group is working to increase thetransparency and flexibility of its management. In concert with this endeavor,
we recognize the critical need to promote the Group’s ongoing developmentfrom a medium- to long-term perspective.
With the introduction in Japan of a Corporate Governance Code, theapproach toward corporate governance by the corporate sector is increasingly
drawing scrutiny. Given this current condition, we are taking steps to review
our Group management methods from a wide range of perspective andworking to strengthen governance.

Corporate Governance
CSR management

43
53

Summary of Major Financial /Non-Financial Data
Consolidated Financial Statements
Corporate Profile / Stock Information

57
59
91

The Group is also incorporating the feedback gleaned from dialogue withits many stakeholders into its business activities. In this manner, we areworking in unison to proactively become a corporate group that continues toNote on forward-looking statements

create value over the medium to long term.

Kiyoshi Kanazashi
Chairman
Tokyu Fudosan Holdings Corporation

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 2016 Integrated Report

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 02

1stCompany Profile

Company Profile

1st Chapter

At a Glance(Fiscal year ended March 31, 2016)

Operating revenue

Operating income¥815.5billionOperating revenue increased 5.5% year on year to reach arecord high against the backdrop of firm conditions in theoffice and condominium markets.

No. of customers

10

Approx.

Four Core Businesses

billionAsset Utilization Type

Urban
Development

The Company achieved a steady increase in profit with
operating income climbing 8.6% year on year. This
represents a fourth consecutive year of profit growth.

millionTotal office building and commercial
facility floor space

1,580,000

m2

Following an increase in the number of commercial facilities,
the Tokyu Fudosan Holdings Group maintains a portfolio of
59 office buildings and 29 commercial facilities. This
represents a 2.1% increase year on year.

Sales agency trading volume¥1.2

triillion

The Tokyu Fudosan Holdings Group engages in real-estate agents'
activities through a nationwide network of outlets operated by
Tokyu Livable, Inc. and overseas bases that attract investors.

03 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

19,230Development and sales of condominiums
and detached housing, etc.

Variable Type

Stable TypeA large and diverse pool of employees work vigorously topush the Group forward across broad business domains.

Cumulative supply no. of condominiums

88,000Residential

Development, leasing, and managementof office buildings, commercial facilities,
residences and other properties; sale ofbuildings, etc. to investors;
management of REITs, realestate private funds, etc.

No. of Group employees

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

Over

¥68.8

Overview of Major Businesses

Property
Management

Real-Estate
AgentsComprehensive management ofcondominiums, buildings, etc.;
condominium renovation andconstruction and other work

Real estate agents: consignment sales;
sales, etc., of real estateunits

In addition to high-quality condominiums that reflect theneeds of each era, the Tokyu Fudosan Holdings Group offers
detached houses under the BRANZ brand.
* Includes certain joint business activities.

Stock Utilization TypeThree Growth Businesses

No. of condominiums under management

716,000

units

The Tokyu Fudosan Holdings Group continues to increase
the number of condominiums under management eachyear focusing mainly on the two major Tokyu Community
and Community One brands.

Wellness

Tokyu Hands

Management and operation of resort
facilities, senior housing, members-only
sports clubs, urban hotel business,
agency services for welfare
facilities, etc.

Retail sales of materials and products
related to everyday and DIY lifestyles

Innovation
Business
Overseas operations, custom homes,
renovation, landscaping, and otherbusinesses

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 04

1stCompany Profile

Company Profile

1st Chapter

Major Business Areas(As of March 31, 2016)

Overseas Business of the Tokyu Fudosan Holdings Group

Commercial facility

Tokyu Hands

Golf course

Ski resort

Resort hotel

Members-only fitness clubShanghaiTokyu Land Corporation Local Subsidiary
Tokyu Land Corporation (Shanghai) Ltd.
Tokyu Livable, Inc. Local Subsidiary
Tokyu Livable (Shanghai) Inc.

Tokyu Hands Sapporo Store
Niseko Mountain Resort Grand Hirafu
Japan

The Hotel NISEKO ALPEN

China
TaiwanTOKYU Harvest Club
Urabandai Grandeco
Urabandai Grandeco Tokyu Hotel

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

(Change of name: July 1, 2016)

Hong Kong
Tokyu Livable Hong Kong Branch

GRANDECO SNOW RESORT
Tokyu Hands Nagano Store

Palau

Palau Pacific Resort

Tokyu Hands Sendai Store

Palau

Singapore

TOKYU Harvest Club NASU

Tokyu Hands, Inc.
Jurong East Store / Orchard Store
Tokyu Livable, Inc.
Equity interest in Orange Tee Holdings Pte Ltd.

TANGRAM SKI CIRCUS (MADARAO)
MADARAO Tokyu Golf ClubTOKYU Harvest Club MADARAO
Hotel TANGRAM (MADARAO)

Mt. JEANS NASU

Indonesia

Jakarta

NASU KOKUSAI COUNTRY CLUBTokyu Land Corporation Local Subsidiary
PT. Tokyu Land Indonesia

TOKYU Harvest Club Trust Karuizawa-Kogen
TOKYU Harvest Club Kyu-Karuizawa • Kyu-Karuizawa Annex
TOKYU Harvest Club Kinugawa

Tateshina Tokyu Ski Resort
TOKYU Harvest Club Tateshina•Tateshina Annex
TATESHINA TOKYU HOTEL

Hunter Mountain Shiobara

Los Angeles
The United States of America

Tokyu Sports Oasis
Hiroshima Store Alfe

Participation in the 425 Park Avenue Redevelopment Project

Tambara Ski ParkSKIJAM KATSUYAMATOKYU Harvest ClubSKIJAM KATSUYAMA

Mochizuki Tokyu Harvest Club
Tsukuba Tokyu Harvest ClubOITA Tokyu Golf Club

Sarushima Country ClubASO Tokyu Golf ClubTOKYU Harvest Club
Atami Izusan & VIALATOKYU Harvest Club
Yamanakako Mount Fuji
TOKYU Harvest Club Ito

Metropolitan Area (Tokyo Metropolitan Area and Three Adjoining Prefectures)
Office buildings

56

Commercial facilities

21

Resort hotels

4

Golf courses

7

Senior residences

15

Tokyu Hands stores

16

Tokyu Hands Matsuyama StoreTOKYU Harvest Club
Amagi Kogen

Members-only fitness clubs

19

Tokyu Hands Hiroshima Store

Amagikogen Golf Course

Urban type business hotels

17

Tokyu Sports Oasis Hiroshima Store
Tokyu Hands Oita StoreTOKYU Harvest Club
Shizunamikaigan

Tokyu Hands Kumamoto StoreTOKYU Harvest Club Hamanako

Tokyu Hands Hakata Store

Market Square Sasashima

Tokyu Hands Kagoshima Store

05 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Tokyu Land Corporation Local Subsidiary
Tokyu Land US Corporation

New York

TATESHINA TOKYU Golf Course
Tokyu Hands Okayama Store

Tokyu Land Corporation Local Subsidiary
Pacific Islands Development Corporation

Kansai Area (Six Prefectures)
Office buildings

3

Golf courses

4

Commercial facilities

6

Tokyu Hands stores

7

Resort hotels

3

Members-only fitness clubs

12

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 06

1stCompany Profile

Company Profile

1st Chapter

Financial and Non-Financial Highlights
Financial Highlights

Non-Financial Highlights

Operating revenue

Operating income

No. of employees(¥ billions)
900
800
700
556.8
600
500
400
300
200
100
0
2012/3(¥ billions)
70(person)
20,000

714.1

773.1

815.5

60

595.9

50

52.0

16,0002013/3

2014/3

2015/3

2016/3

50.00

41.71

40.00

41.61

41.45

47.18

30.00
20.00
10.00
2012/3

2013/3

2014/3

2015/3

2016/3*1 EPS (Earnings per Share):Profit attributable to owners of parent ÷
No. of shares issued as of the end of the period
A profit per share indicator.

5.00
4.00

30

8,000

3.00

0

2012/3

2013/3

2014/3

2015/3

2016/3(times)
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0

0

3.6
2.7

2013/3

2014/32.8

2.6

2013/3

2014/3

2015/3

2016/3

228

4,000

97

3,600

95

3,200

80

93

2,800

40

91

2,400

0

89

2,000

235

200

97.7

2013/3

98.6

2014/3

3.5

15.2

14.0

15,000

10.0

3.0

8.0

7.1

2015/3212

2016/3

4,609

4,597

4,660

2013/3

2014/3

2015/3

4,386

2016/3*3 ROA: Return on Assets(Operating income + Interest income + Dividend income) ÷
Total assets (period average)
An indicator that measures the profitability of investments in total assets.

10.3

18,796

18,908

10.2

10.1

13,594
14,18912,000(intensity)(kg/m2)
12

Water use
（1,000㎥）
2,400

11

2,000

1,881

1,952

10

1,600

0.86

0.85

2,049
0.90

(intensity)(m3/m2)
1.1

1,901
0.90

1.0
0.9

9

1,200

8

800

0.7

2.0

6,000

7

400

0.6

0.0

3,000

6

0

7.5

4.0

07 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

2016/3

9,000

8.7

6.0

2016/311.1

18,00012.0

2015/3

2014/3*2 DE ratio: Debt equity ratio
Interest-bearing debt ÷ Equity (period average)
An indicator that measure financial soundness.

(t)
21,0002014/399.2(1,000GJ)
4,800

99

218

(%)
16.0

2013/3(intensity)(kg-CO2/m2)
103

101.9

(%)
3.6
3.4
3.2
3.0
2.8
2.6
2.4
2.2
2.0
1.8

2012/30

2016/34,400

160

2015/3

4.81

Energy use

Volume of waste generated

3.4

2015/3101

120

2012/3

2012/3(1,000t -CO2)
280
240

5.91

1.00

CO2 emissions

4.4

5.70

2.00

4,000

ROE*4
3.5

7.00
6.00

ROA*3
3.5

(%)

19,23040

DE ratio*2
64.40

17,594

17,106

16,305

18,243

12,000

10

60.00

0

50.1

68.8

20

EPS*1
(yen)
70.00

61.4

63.3

Ratio of female managers

2012/3

2013/3

2014/3

6.6

2015/3

2016/3

2013/3

2014/3

2015/3

2016/3

2013/3

2014/3

2015/3

2016/30.8

0.5*4 ROE: Return on Equity
Profit attributable to owners of parent ÷ Equity
An indicator that measure the profitability of investments in equity

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 08

2nd Chapter

Demonstrating a Recognized Track Record of Creating New Value

A History of Creating New Value
1950

1960

Established in October 2013, Tokyu Fudosan Holdings Corporation, oversees the operations of the Tokyu Fudosan Holdings Group. The Group is comprised ofover 100 affiliated companies and five core operating companies spearheaded by Tokyu Land Corporation. Tracing its history back to 1918 and theestablishment of Den-en Toshi Co., the Group has pioneered efforts to develop the ideal community. Carrying forward our challenger's DNA, we continue togrow as a comprehensive real estate group by consistently creating new value that addresses the various needs of society.

1970

1980

1990

2000

2010

2020

–Seeking to be a Great Local Brand––Comprehensive Life Producer––From Residential Development to Urban Development––To an Era of Group Co-Creation–

Starting with garden cities, we focused on
urban development in Shibuya, Daikanyama,
and other locations

A corporate group that creates lifestyles
through business diversification
We quickly expanded into related business areas derived from real estate

After the bubble burst, steps weretaken to strengthen the earnings
platform focusing mainly on leasing

Anticipating change, we experienced
dynamic growth throughGroup co-creation

We developed ideal suburban housing based on Japan's first garden citysuch as property management, real-estate agents, retail business, fitness

We entered the hotel business and senior housing business. While

Amid an aging population, advancing globalization, and changing

plan and developed Den-en Chofu. After setting up Tokyu Landclubs, and resort hotels. Have grown into a corporate group that creates

pursuing business diversification, we transformed the businesstraditional values, we shifted to a holdings structure to generate new

Corporation, we sought to establish a local brand focused on development

lifestyles through business diversification. Tokyu Community

profit structure to overcome the crisis of the bubble economy's

values by anticipating change. We are pursuing initiatives thatof mainly the Tokyu Group's high-affinity areas, such as Shibuya, and laid the

Corporation, Tokyu Livable, Inc., and Tokyu Hands, Inc., our current corecollapse. We shifted our focus from traditional residential sales toleverage the Group's collective strengths with the aim of medium- tofoundation for business against a backdrop of high economic growth.

companies, were born during the course of this business diversification.

urban development, such as offices and commercial facilities that

long-term growth.

are less prone to economic fluctuation.

Established Tokyu Community Corporation

Established Den-en toshi Co.

1918

1970

Developed Den-en Chofu with

Setagaya Business Square

1993

Yoga directly connected to the train station

become one of the industry's leading property management companies

the aim of developing an ideal community

Established Tokyu Livable, Inc.
1972

Entered the real-estate agents segment ahead of the industry

1993

that integrates business-friendly urban features

Abeno Q's mall

Tokyu Stay Hotel

Opened a shopping mall that is one

stay hotel business with the opening

sales office's that opened in 1956

Established Tokyu
Land Corporation

1999

Entered the retail business under the banner of“Reinstating work done by hand," becoming

real estate division of1955

Daikanyama Tokyu Apartments
Built Japan's first rental residence for foreigners

abundant community that blendswith all western-style rooms, which were rareat that time

facility that has spawned a new culture fromthe major intersection in Jingumae

development projects to create an

2004

nature and history

2012

Two REITs Listed

2013

Activia Properties Inc.

Enteredthe Senior Housing Business

Built the industry's first condominium

Tokyu Sports Oasis

ownership law had not been enacted.

Comforia Residential Reit, Inc.

2013

Opened “Grancreer Azamino" andresidence, even though the sectionalbillionOpened an environment-friendly commercial

Operating revenue

securitization technique

1986¥815.52012

Tokyu Plaza
Omotesando Harajuku

using a development-type

Tokyu Skyline
1958

2002

Built our first office building project

Asumigaoka New Town
Started one of Japan's largest urban

Entered the real-estate fund business securitizing

Ichiban-cho Tokyu Building

1982

Tokyu Corporation

Real Estate Securitization Businesslarge shopping centersa Do-It-Yourself (DIY) cultural leader

Born from the split off of the

FY2015
Operating revenueof our first facility in Kamata

Established Tokyu Hands, Inc.
1953

of the largest in Osaka PrefectureEntered the medium- and long-term

as an area service company, the predecessor of the Shibuya

1976

2011

Opened an office building complex in

Expanded business by entering the property management segment to“Grandcare Azamino," our first facilities.

Opened the first club of this members-only

Established Tokyu Fudosan Holdings Corporation

fitness club that offers a healthy lifestyle

Established Group business infrastructure to
maximize synergies

Shibuya
Tokyu Building
Groundbreaking sectional

1965

Shiodome Building

1988

2007

Opened a large office building,surface rights establishedand commercial complex opened nearmeeting the needs of modern businessTokyu Harvest Club

Shibuya Station's west exit

Established Tokyu Housing Lease Corporation
Integrated the Group's rental housing managementbusiness and strengthened the real-estate investment andasset management business

Opened the first facility in Tateshina of this2014

pioneer in membership resort hotels

2016

Tokyu Plaza Ginza
Opened a world-class commercial
facility in Ginza Sukiyabashi

1950

1960

Social Trends

1960

1964

1970

Income doublingplan announced

Tokyo Olympics

Japan World
Plan for
Exposition held Remodeling
the JapaneseArchipelago

09 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

1970

1980
1972

1990

2000

2010

2020

1973

1985

1989

1991

1995

1998

2008

2011

2020

First oil shock

Plaza Accord

Consumption
tax introduced

Bursting of
economic bubble

Kobe earthquake

Nagano Olympics

Lehman Brothers' collapse

Great East Japan Earthquake

Tokyo Olympics andParalympic GamesTOKYU FUDOSAN HOLDINGS 2016 Integrated Report 10

2nd Chapter

Demonstrating a Recognized Track Record of Creating New ValueThe Value Creation Process
We will leverage real-estate assets andprovide new solutions to social problems.

Our Capital

Maximization of capital

Our Business Model
Increasingly intense inter-city competitivenessJapan’s inter-city competitivenessSocial/Environmental
capitalSocial trust/
Brand

27

th

Source: World Competitiveness Yearbook 2015 (International Institute for Management Development)

Increase in dilapidated buildings

Number of condominium units in 2033 built more than 40 years ago

Approx.

2.96million units

Source: Real Estate in Japan 2016 (The Real Estate Companies Association of Japan)

Take on thechallenge ofsocial issues

Human capital

Abundant humanresources

Approx.

6.13million units

Diversification of needs and preferences
Consumers who think consumption
activities affect social issues

Approx.

Organizational
capitalGroup collective
strengths

Our Business

Source: Ministry of Land, Infrastructure, Transport
and Tourism (FY2016 Housing Economic-related Data)

64.3%

Improving the quality of life
through assets
Increased assets values

Source: 2015 Public Opinion Survey on the
Promotion of Consumer Administration

Developing andparticipating in assets

IoT development

Number of things connected to
the Internet by 2020

Approx.

53 billion

Unique businessdevelopment capability

Aging society

Population Aging Rate in 2060 (Japan)

Approx.

40%

Source: Cabinet Office: White Paper on
Aging Society (2016)

Progress of globalization

Government's goal of the number of foreign visitors in Japan by 2020

Manufacturing
capitalDiverse assets

Urban
Development

Residential

40,000,000

Social challenges
Natural disasters caused by climate changethat we face
Source: Japan Tourism Agency explanatory material

Japan’s CO2 reduction target by 2030 (compared with 2013)

26%

Property
Management

Real-Estate
AgentsGrowth Businesses
Wellness

Source: 2015 White Paper Information and Communicationsin Japan (Ministry of Internal Affairs and Communications)Intellectual
capitalCore Businesses

Tokyu Hands

Innovation
Business

Abundant humanresources• Diversity promoted• Highly professional human resources
Architects: Approx. 800
Real-estate brokers: Approx. 4,880
Condominium managers: Approx. 570

Groupcollective
strengths• Creation of Group synergy• Groupwide personnel training
and exchange measures

Unique businessdevelopment
capabilities• Urban development knowhow• Diverse business methods

Diverseassets• Presence in greater Shibuya area
Office buildings: 59;
Commercial facilities: 29• Senior residences: 15• Membership resort hotels: 27• Urban hotels: 17

Stablefinances• Cash-ﬂow creation• Increased equity• Stable ﬁnancing capability

Urban redevelopment(offices, commercial facilities,
residential, etc.)

Development andrenovation of assets
with new value

Increase in building stock

Cumulative number of condominiums in FY2014

Social trust/
Brand• Trust and peace of mind of the
Tokyu brand• Distinctiveness of Tokyu Hands, Inc.
• Business knowhow based inlocal communities and theenvironment• Contact with 10 million
affluent customers

Existing assets ofrenovation, property
management, andreal estate agents
Provide new services
for diversified needs
Provide services
that employ IoT
Provide asset services
for seniors
Business expansion into
inbound and outboundneeds
Initiatives to conserve
the environment andcontribute tocommunities

2 nd
Demonstrating a Recognized Track Record of Creating New Value

Tokyu Fudosan Holdings Group is not only involved in the development of assets in its seven segments consisting of core and growthbusinesses, it is a group that goes beyond the bounds of physical frames and creates lifestyles by raising asset value and the quality of life. We
have sought to provide new solutions to social problems through this business.
From our founding we have inherited a “challenger's DNA" and having achieved many “ﬁrsts," we will continue to provide new value to awide range of stakeholders by anticipating future social changes and solving a wide range of social issues. As a result, we have been chosen
by stakeholders including customers and will continue to expand sustainable business resources and raise corporate value.

Source: Japan's Intended Nationally Determined Contribution (Ministry of the Environment)

Financial
capitalStable finances

Strong governance that supports business

A Challenger’s DNA

Sustained growth

11 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 12

2nd Chapter

Demonstrating a Recognized Track Record of Creating New Value

Creating Value for Stakeholders
We are raising the level of satisfaction among stakeholders

Creating value
with stakeholders

Evaluations from Stakeholders

Customers

Customers
Providing comfortable andhighly satisfying products
and services

We learned about Harvest Club when a couple we are friends with and who are members took us
on a visit of their accommodations. Along with being conveniently located with comfortablerooms, the service provided by employees was appealing. Given the difficulties posed by cottage
upkeep, we decided on a resort hotel membership that we could use at our convenience. A big
factor in our decision was that the management company is Tokyu, which is well known for being
trustworthy. After becoming members, we stayed at Harvest Club during our Kyoto vacation,
which allowed us to visit various places at our leisure. With Harvest Club facilities locatedthroughout Japan, we definitely looking forward to experiencing traditional events and visiting
beautiful places.

Social Contribution Partners

Society/
the Environment
Realizing a better society bytaking on social issues

Shareholders/
Investors
Enhancing Sustainable

Tenants State-of-the-art green offices that are comfortable to work in

Comfortable Resort Hotels with a Cottage AtmosphereThis is Why We Decided to Choose Tokyu, a Name You Can Trust

Tokyu Harvest Club Kyoto
Takagamine owners
Mr. and Mrs. Maruyama

Environmental Initiative Partners

Changing the Local Community by
Making Shibuya a Campus for Learning

Established as a non-profit organization (NPO) in 2006 under the concept of making Shibuya acampus for learning and learning from each other, the Shibuya University Network has held
over 1,000 seminars to date. While Shibuya University Network currently has numerous
partners, it all started with Tokyu Hands. With Tokyu Hands looking to contribute to the local
community through its Shibuya outlet, which matches our objectives, we jointly held a bicycle
maintenance seminar in 2008. Using store employees as instructors, participants learned how
much fun do-it-yourself activities are. Going forward, we will maintain our positive relationshipwith Tokyu Hands while searching for ways to enrich the lives of people, local communities,
and society as a whole.

We are working to reduce environmental burdens in our business activities so that customers canenjoy delicious natural coffee anytime. The Shin-Meguro Tokyu Building, in which ourheadquarters is located, offers a host of environmentally conscious features. These features allow
us to work in comfort on a daily basis. For example, there are monitors installed on each floor that
display energy usage volume, making it possible to find out exactly how much electricity is being
consumed. In addition, the building has a bright atmosphere thanks to large windows that provide
a view of trees planted in the rooftop garden terrace on the fourth floor. When the weather is nice,
I go out on the terrace to enjoy the greenery while taking a break. We photograph new products
using this green space as a backdrop, underscoring the abundantly green and comfortableenvironment in which I work.

Yasuaki Sakyo
President
NPO Shibuya University Network
Specified nonprofit organization

Upper photograph: Monitor
showing electricity consumption
Lower photograph: New products
photographed in the rooftop
garden terrace

Tatsuya Inoue
CEO
Nishiawakura Forest School

Tokyu Hands original
stationary made using
sustainably harvested wood.

Creating abundant forests andexpanding the use of domestic lumber

Nishiawakura Village in Okayama Prefecture is working to create abundant forests through its“100-Year Forest Concept” based on over 80% of the village being comprised of forest.
Nishiawakura Mori no Gakko (Forest School) is raising the value of domestic lumber through its
involvement that extends from lumber harvested from Nishiawakura Village forests to
end-products used by customers. Through its Midori wo Tsunagu Project, Tokyu Fudosan HoldingsGroup is using timber from Nishiawakura forest thinning activities in a variety of businesses, suchas office building construction materials, playground equipment used at commercial facilities, andTokyu Hands original stationery supplies. With thinning playing a vital role in cultivating forests, wewill work together to create abundant forests in Japan and expand the use of domestic lumber.

Inclusion in the SRI Indices FTSE4Good

Inclusion in the SRI Indices Dow Jones Sustainability Indices

Tokyu Fudosan Holdings Group has been selected for inclusion as a constituent
stock in FTSE4Good Japan Index.
FTSE4Good is a stock price index provided by FTSE Group, a wholly owned
subsidiary of London Stock Exchange Group that selects companies with high rated
for corporate social responsibility activities from the perspective of Environmental,
Social and Governance (ESG) practices as constituents for the index.

The Tokyu Fudosan Holdings Group has been selected for inclusion in the Dow Jones
Sustainability Asia/Pacific Index (DJSI Asia Pacific), which is the Asia/Pacific edition of the
Dow Jones Sustainability Index (DJSI).
The DJSI SRI index was jointly developed by U.S. based media firm Dow Jones and Swissbased SRI research and rating firm RobecoSAM. The index rates the sustainability of large
enterprises around the globe based on economic, environmental, and social aspects, andselects corporations that it finds to offer overall excellence.

Growth and Corporate Value

Starbucks Coffee Japan
Mamiko Iwasaki (in the rooftop garden terrace)
P&AP/C Team
General Affairs Department
Administrative Division

2 ndDemonstrating a Recognized Track Record of Creating New Valueby finding solutions to social issues through our business activities.

Tokyu Fudosan Holdings Group will create new value for all stakeholders—customers, society/the environment, shareholders/investors,
employees/business partners—by finding solutions to social issues through its business activities. Transcending the material, we will continue
to pursue new value together with our stakeholders to realize a sustainable society as a Group that create lifestyles.

* Social responsibility investment (SRI): An investment method where in addition to financial analytical
data, individual and institutional investors consider CSR information such as social, environmental, andcorporate governance as investment criteria.

Employees

Employees/
Business Partnerss
Promoting environmentsthat are easy to work in,motivating, anda source of pride

13 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Flexible Work Style Innovations for both Men and Women

In 2013, Tokyu Livable, Inc. became the first major company in the real estate industry toestablish a division specializing in promoting diversity. The number of working parents among
our employees has increased fourfold since then. This owes to our efforts to assist sales
personnel who work on weekends by providing daycare services at company offices duringholidays and introducing a system for assisting with related expenses. To promote highly
efficient and flexible work styles, we have introduced staggered working hours andtelecommuting (working from home) systems in April 2016 in order to enable diverse
employees to display their abilities to the maximum extent possible. We aim to realize working
environments that allow both male and female employees to make the most of their talents.

Business Partners

Eriko Nonaka
Manager
Personnel Development Department
Administration Division
Tokyu Livable, Inc.

A New Landmark Imbued with Greenery and Light

Operated by Tokyu Land Corporation, the urban commercial facility Q Plaza HARAJUKU
aims to create a comfortable atmosphere imbued with greenery and light under theconcept of being a new landmark that brings together Shibuya and Omotesando. In
keeping with the area’s fashionable image, this building exudes a myriad of expressions
based on a design featuring a collection of fins and being adorned with differing colors on
the Shibuya and Omotesando sides. Moreover, the building creates a natural atmospherein the heart of Tokyo using a property that has depth and features a three-tier terrace withlush greenery situated deep within the building. As a new area landmark, Q PlazaHARAJUKU promises to become a beloved place by all those who visit.

Mark Dytham, Astrid Klein
Klein Dytham architecture

Q Plaza HARAJUKUDifferent expressions on the Shibuya
and Omotesando sides

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 14

2nd Chapter

The Tokyu Fudosan Holdings Group put in place a new medium- and long-term management plan covering the seven-year period
from fiscal 2014 to fiscal 2020. Under the title “Value Frontier 2020: A Corporate Group that Continues to Create Value," this mediumand long-term management plan provides a roadmap to help steer the Group from a period of infrastructure development to a solid
growth phase. Given the dramatic changes in the Group's business environment and social climate over an extended period, we
decided to adopt a long term approach toward management and to clarify what we believe is the ideal scenario for the Group andits future.

Demonstrating a Recognized Track Record of Creating New Value

Medium- and Long-Term Management Plan

2 nd

–A Corporate Group that Continues to Create Value–

We are working diligently to advance the Medium- and Long-Term Management Plan in
an effort to become a corporate group that continues to create value.

Asset management

Basic PolicyGroup Management Developing
Strategies
high-quality assets

Expansion of associated assets

Building management
Rental property

management[Assets owned by the Company][Assets under management by REITs, funds, etc.]

ExpandingWorking to maximize the benefits of its transition to a holding
company
associated assets

Creation of new demand

Improving the value of
associated assets[Assets owned by customers]
structure in 2013, Tokyu Fudosan Holdings
has placed considerable
emphasis
External assets

Property management of condominiums/

Expanding and creating
derived business opportunities

Making the Most of Group Synergies
Taking steps to develop human resources and to increase theefficiency
of systems in order to enhance efficiencies throughout
Construction
and renovations
the Group and integrate operations

buildings, property management of residences,
Expandingmarkets
on strengthening its management
in its mediumand long-term
real estate agency services

related to existing

Asset management

New growth areas

Building management
Developing
high-quality assets

Rental property

management[Assets owned by the Company][Assets under management by REITs, funds, etc.]
Expandingassociated assets

External assets
Expanding markets
related to existing
real estate stock

Improving the value of
associated assets

Expanding and creating
derived business opportunities[Assets owned by customers]
Property management of condominiums/
buildings, property management of residences,
real estate agency services

Markets related toexisting stock

Utilization of vacant houses
Utilization of space

Demand related to seniors

Life support services
for seniors

Inbound demand

Demand from foreign investors
Use of commercial facilities and hotels

Construction and renovations

Real estate agency services

Creation of new demand

Overseas markets

Development of
new businessestatestock
management plan. In positioningreal
theholdingcompany as a platform from

Real estate agency services

which to allocate management resources and consolidate common

Demonstrating a Recognized Track Record of Creating New Value

Medium- and Long-Term Management Plan Value Frontier 2020

● Corporate Governancefunctions, Tokyu Fudosan Holdings has put in place a structure that allows

We will upgrade and expand the scope of our corporate
governance in order to increase the efficiency of ouroperations and to ensure a sound and highly transparent
management structure.

operating companies to concentrate on maximizing corporate value.
Moving forward, the Group as a whole will focus on fully harnessing its
comprehensive strengths and to enhance efficiency while integrating
operations. Complementing these endeavors, the Group will bolster its
corporate governance and CSR management capabilities. By building strong
ties of mutual trust with all stakeholders including shareholders, investors,● CSR Management

Providing solutions to society’s problems in a bid to earn thetrust of customers and society

financial institutions, customers, employees, and the local community, we will
work diligently toward promoting sustainable growth.

OperatingOperatingOperatingcompanies
companies
companies

The Tokyu Fudosan Holdings Group has identified two basic policies under its
medium- and long-term management plan. Working to become a corporategroup that continues to create value, the Group is committed to the expansion of associated assets and the creation of new demand.
In endeavoring to expand associated assets, the Group will work throughits four core Urban Development, Residential, Property Management, andReal Estate Agents business segments. Every effort will be made to develop
high-quality assets including the redevelopment of Shibuya and to acquireand become involved in external
assets from expandingtoOperatingOperating markets related
OperatingOperatingOperatingOperatingcompanies
companies
companies
existing real estate stock. Throughthesemeans,
the Group
will expand
andcompanies
companies
companies

Core Businesses

Combined stre
ngths of the corporate group
Corporate govern
ance CSR management

Expansion of Associated Assets
While developing high-quality assets that exhibit market superiority, theGroup will ramp up its involvement in real estate owned by customers
in markets related to existing stock by acquiring high-quality assets
through its Property Management, Real Estate Agents, and otherbusiness activities.
At the same time, the Group will increase value and strengthen
relationships with customers by providing high value-added services
mainly through its Property Management business.

Targeted Management Incicators

create derived business opportunities.
The three Wellness, Tokyu Hands,
and Overseas growth businesses willCombined strengths of the corporate groupspearhead efforts to create new demand.
Group will maximize its uniqueCorporaThete governance CSR management

features and strengths to develop businesses in new growth areas.

Creating new
demand throughcontinued evolutionof the Group’s business model

Expanding and creating business
opportunities through the expansion

15 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Growth Areas

Creation of New Demand

Making the most of our inherent strengths and a brand name that issynonymous with safety and reliability, we will promote growth in corebusinesses. To this end, we will draw on our access to approximately 10
million customers in a bid to create demand in new growth areas
relating to existing real estate stock, senior consumers, inbounddemand, and overseas businesses.

OperatingOperatingOperatingcompanies
companies
companies(Billionsof Yen)Fiscal 2014
Operating income
63.3 billion yen
DE ratio
2.8 times

Fiscal 2015
Operating income
68.8 billion yen
DE ratio
2.6 times

Fiscal 2016 Targets
Operating income
73 billion yen
DE ratio
2.6 times

Fiscal 2020 Targets
Operating income
100 billion yen
DE ratio
low 2.0 range

2014

2015

2016

2020

100
80
60
40

Growth into
基盤事業への成長
core businesses

200Upgrading and expanding
the Group’s revenue base

(FY)

Medium-Term Management PlanTOKYU FUDOSAN HOLDINGS 2016 Integrated Report 16

3rd Chapter

A Commitment from Top Management

Our Aspiration

Progress and Prospects

The Tokyu Fudosan Holdings Group can trace its history back to the pioneering Den-en Chofu project, an attempt to develop the ideal community that began in 1923. The Group has since grown to over 100 companies and engages in a comprehensive range of real estate activities.
Since that beginning, we have engaged in real estate development
activities through Tokyu Land Corporation, which was founded in 1953.
The Group was then quick to venture into the property management
and real estate agents' business fields. Tokyu Community Corporation
and Tokyu Livable, Inc., both of which came into existence at the
beginning of the 1970s, went on to establish leading positions in theirrespective industries. In the ensuing period, the Group has continued
its ceaseless evolution in response to changes in each subsequent era,and has grown into a corporate group with a strong character andbroad operating range.
The environment in which the Group operates is undergoing dramatic and rapid change. In addition to a slowdown in the domestic
and oversea economy, Japan is today exhibiting the characteristics of asuper-aging society while confronting such wide-ranging trends asincreasingly diverse lifestyles. Turning to the real estate industry, we arewitnessing a brace of entirely new issues emerge. This reflects a myriadof concerns including intense competition between major metropolitan cities, growth in inbound demand, and the advent of a society thatis looking to utilize its real estate stock.
Under these circumstances, the Group is endeavoring to make themost of its comprehensive strengths and to break free from conventional shackles. As a part of these efforts, and in a bid to continuously
create value, we transitioned to a holding company structure in
October 2013 and announced details of the Group's first medium- andlong-term management plan, Value Frontier 2020, in November the following year.
Under its medium- and long-term management plan, the Group has
identified the overarching goal of becoming a corporate group that
continues to create value by 2020. In order to achieve this goal, theGroup has put in place the basic policies of (1) expanding involvement
assets by strengthening core businesses, and (2) creating new demandby accelerating growth businesses.
One year has passed since I assumed the position of president. Over
this period, I have made every effort to implement and promote
growth strategies based on the aforementioned basic policies. Buildingon the firm foundations laid by the Group, I see it as my mission to reap
the rewards of our endeavors one step at a time.

Before elaborating on the growth strategies of each Group business, I
would first like to report on our most recent financial results. In fiscal
2015, the fiscal year ended March 31, 2016, market conditions were generally firm. In addition to the downturn in office building vacancy rates inurban areas, the real estate market benefited from growing demand for
new condominiums, especially by the well-to-do, and an upswing in
activity in the market for existing condominiums. Accounting for theseand other factors, the Tokyu Fudosan Holdings Group reported anincrease in revenue and earnings. Operating revenue came to 815.5 billion yen while operating income totaled 68.8 billion yen. Both of theseresults were also in excess of plans. Buoyed by this positive performance,
the Group's DE ratio*1 improved to 2.6 times.
Fiscal 2016, the fiscal year ending March 31, 2017, is the final year of theGroup's medium-term management plan that began in fiscal 2014. Thanks
to a variety of developments including the opening of Tokyu Plaza Ginza, alarge-scale commercial facility in March 2016, and the growth in inbounddemand that continues to fuel robust results at our chain urban-type
Tokyu Stay hotels, we are more than confident of achieving our operating
income target of 73.0 billion yen. As far as our DE ratio is concerned, we
achieved the target of 2.6 times in fiscal 2015, a year in advance. This ratio is
expected to remain unchanged in the current fiscal year.
Tokyu Fudosan Holdings Corporation will celebrate its third anniversary
in October 2016. In order to accelerate the pace of growth by promoting
Group-wide joint development efforts, we will take steps to formulate a
new medium-term management plan that will guide us through to 2020and beyond during the current fiscal year. While we will continue to follow
the broad framework set up under our existing medium- and long-term
management plan by pursuing the stable growth of core businesses andsowing the seeds of future growth in other businesses, we will pay particular attention to promoting growth while at the same time increasing efficiency with a view to establishing an optimal business portfolio.
Our mission as a corporate group is grounded in the creation of value.
In specific terms, this entails putting forward new lifestyle proposals thatmove beyond the bounds of physical frameworks. Moving forward, we
will make every effort to create beautiful living environments that allow
people to enjoy prosperous and healthy lives based on a broad anddiverse range of lifestyles. In meeting this objective, we will ultimately
fulfill our purpose and become the preferred choice of customers, shareholders, and investors.

Drawing on the strengths of our challenger's DNA,
we are committed to becoming a corporate groupthat continues to create value.

Accelerating the pace of robust growth through co-creation, we are committed tomoving beyond the bounds of physical frames to develop lifestyles and enjoysustainable growth in concert with society.

We will steadfastly achieve our targets inthe final year of our medium-term
management plan.

3 th
A Commitment from Top Management*1 DE ratio: Debt equity ratio Interest-bearing debt ÷ Equity

Medium- and Long-Term Management Plan Value Frontier 2020
Medium-Term Management Plan

President and Chief Executive Officer
Tokyu Fudosan Holdings Corporation

Fiscal Year

Fiscal 2014

Fiscal 2015

Fiscal 2016

Operating Income*2¥63.3 billion¥68.8 billion¥73 billion

Net Income*2,3¥25.2 billion¥28.7 billion¥31.5 billion

DE ratio*2

2.8 times

2.6 times

2.6 times

Established Tokyu Housing
Lease Corporation

Tokyu Plaza Ginza opened
Tokyu Stay Ginza opened
Dogenzaka 1 chome
Shibuya-station front
District Urban
Redevelopment Project(commencement of work)

Takeshiba Urban
Redevelopment Project(tentative name)(commencement of work)

Yuji Okuma
Major Topics*2*2 Numerical data and major topics from fiscal 2016 are projections.

17 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020¥100 billion

Low 2.0 range
Grancreer Setagaya
Nakamachi opened

Tokyu Harvest Club
Karuizawa & VIALA opened

Dogenzaka 1 chome
Shibuya-station front
District Urban
Redevelopment Projectcompleted
Shibuya Nampeidai Project(tentative name) completed
Tokaichiba Project(tentative name) opened

Takeshiba Urban
Redevelopment Project(tentative name) completed
Shibuya Sakuragaoka Block
Redevelopment Plan completed
Jingumae 6-chome Block
Urban Redevelopment
Project (tentative name)completed*3 Net income has been reclassified as profit attributable to owners of parent from fiscal 2015.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 18

Expanding Associated Assets (1)We are promoting development projects as the newface of Tokyo as an international metropolis.
Each of the Group's businesses has adopted strategies aimed at promoting growth under the medium- and long-term management plan. I
would like to provide details of a few select examples.
The inherent strength of an attractive urban environment to attractsuch wide-ranging resources as people, goods, capital, and information
is becoming increasingly important with the growing trend toward globalization. As a result, competition between major metropolitan cities is
becoming increasingly fierce. Against this backdrop, Tokyo's ability tocompete with other international cities has become an important issue
for the nation.
In a bid to play a major role in the government's growth strategy, theGroup is undertaking the large-scale development of prime assets
spread throughout the Ginza, Hamamatsucho and Takeshiba, andShibuya areas of Tokyo as a part of efforts to boost the international competitiveness of the nation's capital.

Hamamatsucho and Takeshiba
The Hamamatsucho and Takeshiba districts serve as air and sea gateways
to the nation's capital, Tokyo. The Tokyu Fudosan Holdings Group is working with the Tokyo Metropolitan Government to push forward theTakeshiba District Urban Redevelopment Project (tentative name) with aview to completion in 2020. Facing Tokyo Bay, and with easy access to
Haneda Airport, this redevelopment project will serve as an important
entranceway to travelers from around the world. As a part of the Tokyo

Project Around Shibuya Station
The areas around Shibuya Station constitute the Tokyu Group's principal
home base. These areas are undergoing unprecedented redevelopment.
In addition to a new entranceway at the west exit of Shibuya Station,
the Dogenzaka 1 chome Shibuya-station front Direct urban
Redevelopment Project entails the construction of high-grade officespace across the high-rise floors and commercial space covering the
low-rise floors. As a part of first floor bus terminal work, plans call for
departure and arrival depots for shuttle buses to the airport.
In a bid to fill a conspicuous void, plans call for the construction oflarge-scale office buildings under the Nampeidai Project (tentative name).
With a view to address the growing demand for office space, construction
work on each of these projects is scheduled to end in fiscal 2019.
Making the most of an open space measuring 2.6 hectares at thesouth-west section of the station, the Shibuya Sakuragaoka Block
Redevelopment Plan calls for the construction of world-class lifestylesupport facilities as well as incubation facilities designed to help venture businesses. Addressing both hard and soft business needs, thisplan is expected to significantly strengthen the international competitiveness of the area. Completion of construction is currently scheduled
for fiscal 2020.
Through each of these projects, the Tokyu Fudosan Holdings Group is
endeavoring to improve the flow of foot and other traffic throughout theareas surrounding Shibuya Station. The goal is to create an attractive
urban environment from every aspect of life including the cultural, residential, and business perspectives.
Taking into consideration efforts to broaden the scope of urban
boundaries and to look beyond the areas around Shibuya Station, we
are focusing on the Greater Shibuya Area, which includes Aoyama,
Omotesando, Hiroo, Ebisu, and Daikanyama. Ultimately, our mission isto establish Greater Shibuya as a premier office building and commercial facility area by fiscal 2020.

Shinjuk u-k u

TO KYOC h i yoda -k u

I mper i a l
PalaceC h uo -k u

Shibuya-k u

GIN ZAM i n ato -k u

GREAT ER SHIB UYAH AMAMATSUCH O
and TAKESH IBA

Tok yoBay

19 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Expanding Associated Assets (2)Creating New Demand (1)With the continued easing of monetary conditions, demand for theproper management of real estate assets is growing with each passing
year. At the same time, the real estate investment trust (REIT) market is
exhibiting signs of robust activity.
Sponsored by Tokyu Land Corporation, the Tokyu Fudosan HoldingsGroup has established two publicly listed REITs (Activia Properties Inc.
and Comforia Residential REIT, Inc.). The Group as a whole has adopted
the policy of expanding assets under management (AUM) underpinnedby the growth of its asset management business through various vehicles including the aforementioned REITs and private equity funds.

Estimates indicate that people over the age of 65 will comprise morethan 40% of Japan's total population by 2050 due to the continued
aging of its society. Taking this factor into consideration, we recognize
the urgent need to help upgrade and expand the healthcare industry.
With a market scale of more than 8 trillion yen, the Tokyu Fudosan
Holdings Group has identified the three leisure, seniors, and healthfields as a wellness domain. By promoting cross-sectional collaboration
across the entire Group, we are working diligently to support a wide
spectrum of customers in their efforts to lead rich and fulfilling lives.
The Group has engaged in the development of golf courses, country
houses, and other resorts for more than four decades. A prime exampleof the Group's overseas endeavors in the wellness domain is the Palao
Pacific Resort. This resort, which strives to maintain perfect harmony
with the natural environment, celebrated its 30th anniversary in 2014.
The Group also launched the Tokyu Harvest Club initiative in 1988 tohelp people find new ways to spend their leisure time. In the ensuing
period, the Group has taken positive steps to continuously expand thischain of membership resort hotels. In an effort to cater to the needs ofthe elderly, the Group introduced a series of high-quality senior housing under the Grancreer brand name. Coupled with its Tokyu Sports
Oasis members-only fitness clubs, urban-type Tokyu Stay hotels thatprovide accommodation over long periods, and Ewel consignment
welfare services, the Group engages in a wide range of activities in thewellness domain.
As a pioneer, we have nurtured a significant number of initiatives
over an extended period in this particular business segment. Putanother way, our activities in this domain help to distinguish many of
the Group's unique features. Recognizing the current need to incorporate medical concerns in urban development activities for example,
Tokyu Land Corporation executed an agreement with Juntendo
University in 2015. Under this agreement, the company is engaging in
joint research and the development of various services. Through the
Setagaya Nakamachi Project and the Tokaichiba Project (tentativename), the Group is promoting mixed condominium unit and senior
housing use development that help promote interaction between
generations and lifestyle continuity from one generation to the next.
As a group that has come to be associated with “comfort and reliability," the Group is making the most of a wide range of assets and its
wealth of specialized know-how to forge a strong presence as a comprehensive wellness company.

We are expanding assets under management (AUM)
in a bid to address growing market needs.

*4 AUM: Assets under Management

Expanding Associated Assets (3)We are establishing a leading position in markets
that utilize real estate stock, where needs continue
to increase.
The number of vacant houses in Japan has reached an all-time high.
In contrast, new residential construction starts are exhibiting a downward trend. Against this backdrop, the number of households in theTokyo Metropolitan Area, which is considered key to the supply of
new constructed houses is projected to decline after peaking in 2025.
Taking these factors into consideration, forecasts indicate a drop in
new demand and the transition from an era of development to aperiod of existing real estate stock utilization in earnest.
With a view to expanding associated assets, the Tokyu Fudosan
Holdings Group will look beyond the stock of existing real estate toactively acquire and become involved in external assets. By turning an
eye to areas other than the development of the aforementioned prime
assets, we will promote other opportunities through our Property
Management and Real Estate Agents' businesses and take a leadingrole in promoting a society that utilizes existing real estate stock.
The Group already boasts a strong share of the property management
market mainly through Tokyu Community Corporation. Rather than reston our laurels, we are looking to dominate the industry by a wide margin, thereby gaining further access to valuable information while securing management resources. Through these and other means, we will
adapt to changes in the real estate market from 2020 and beyond.
Drawing on the strengths of Group company, Tokyu Livable, Inc., andits nationwide network of real estate agents, the Group is endeavoring tosecure the top position in real estate agents' sales, consignment sales,
and real estate sales transactions. At the same time, we are aggressively
attracting overseas investors by leveraging the strengths of bases established in Shanghai, Hong Kong, Taiwan, and Singapore.

We are creating new demand in the wellness domain
by making the most of the Group's unique features.

3 th
A Commitment from Top Management

Ginza
The Tokyu Fudosan Holdings Group first entered the Ginza market,
Japan's leading commercial district, in March 2016. Drawing on thecollective strengths of the Group, we have recently opened Tokyu
Plaza Ginza, the largest commercial facility in the Ginza area. Locatedat the Sukiyabashi intersection, this unique facility serves as the western gateway to the Ginza district as well as Tokyo’s eastern-most base.
Work on this project extends well beyond the completion of construction. The Group is conscious of the needs to assimilate smoothly into thesurrounding environment, contribute to the local community, and fulfill
its responsibility to society. Making the most of its inherent DNA as anurban developer, the very lifeblood of the Group since its establishment,
Tokyu Fudosan Holdings is working diligently to inject new energy into
the Ginza area and invigorate the flow of visitors throughout the district.

Metropolitan Government's Urban Regeneration Step Up Project, theHamamatsucho and Takeshiba districts have been designated as anational strategic economic growth area. In bringing to fruition a number of special zones, the goal is to create an industrial park that leads theworld in digital content.
Among a host of distinguishing initiatives, the project will feature a pedestrian walkway that will link the areas surrounding Hamamatsucho Station,
which are currently compartmentalized and separated. Moving beyond thetangible aspects of the redevelopment project, particular emphasis will beplaced on bolstering area management and to draw our inherent DNA as anurban developer to lift the value of the district as a whole.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 20

Creating New Demand (2)The Group is working in unison to capture inbounddemand, which continues to enjoy rapid growth.

Creating New Demand (3)We are strengthening our overseas businessdevelopment endeavors in our pursuit ofopportunities in new fields.
In its overseas business operations, the Tokyu Fudosan Holdings Group
continues to generate stable earnings mainly through its bases inIndonesia, the United States, and China. In Indonesia, the Group maintains a track record that spans over 40 years. Building on its initial overseas project under the BRANZ brand name, we are pushing forward a
steady stream of large-scale condominium projects in Jakarta and surrounding areas.
Our operations in the United States began with an investment inreal estate and specifically in an urban development project in
Houston. Today, we are participating in the 425 Park Avenue Project.
This super high-rise office building redevelopment project is located in
the world renowned Plaza commercial district of Manhattan in New
York. I am confident that our participation in such a rare and high profile undertaking will hold us in good stead as we look for growth

21 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Medium-Term Investment Plan

We focus on investments that emphasize the qualityof returns to increase our corporate value.
Under its medium- and long-term management plan, Value Frontier
2020, the Tokyu Fudosan Holdings Group is transitioning from an infrastructure development to a growth phase. Drawing on its collective
strengths, this medium- and long-term management plan is much morethan an extension of the Group's existing activities. The plan serves as aroadmap that will allow us to reach a higher plane.
In moving to the next level, we will aggressively undertake newinvestments in order to definitively push forward the growth strategies ofeach business.
Driven by the policies of the national government, Japan's interest
rates continue to hover at a low level. At the same time, short-term activity in the real estate investment market is higher than expected. Taking
the aforementioned into consideration, we are placing increased weighton the quality of each investment as opposed to investment scale.
Looking ahead, we will steadily advance existing redevelopment projects
in areas around Shibuya Station. At the same time, we will consider awide variety of asset investments. We also plan to invest in opportunities
in each of our hotel and senior housing businesses. We will adopt a stringent approach toward investment placing particular emphasis on thequality of returns in order to increase our corporate value.

Strengthening Our Financial Position

We will improve our DE ratio to between
low 2.0 range.
Since transitioning to a holding company structure in 2013, we haveworked diligently to strengthen our financial position. As a part ofthese efforts, we have continued to monitor movements in our DE
ratio as a measure of our overall standing.
Following SPC consolidation in fiscal 2011, for example, theCompany's debt equity ratio surged to 4.4 times. Looking ahead, ourgoal is to improve our DE ratio to between low 2.0 range by fiscal 2020.
In fiscal 2014, our interest-bearing debt increased due mainly torobust investment activity. Thanks largely to the decrease in interest-bearing debt and successful efforts to bolster our equity, our debt
equity ratio improved to 2.6 times in fiscal 2015, our target for fiscal 2016.
With an eye to stable growth in the future, and in order to secure theflexibility required to make prudent investment decisions, we have positioned efforts to reinforce our financial position as an important management priority. With a strong business base, we are confident in our ability
to undertake bold investments when an opportunity arises. We will continue to follow a stringent policy toward forward-looking investments
while bolstering our equity through the accumulation of annual profits.
In this manner, we will pursue the organic improvement of our DE ratio.

Increasing Shareholders' Value

We will foster long-term ties of mutual trust with ourshareholders and investors.
The Tokyu Fudosan Holdings Group will continue to actively foster
long-term close-knit ties with its shareholders and investors. As a partof efforts to return profit to our shareholders, we will ensure the stablepayment of cash dividends. At the same time, we are targeting a dividend payment ratio of at least 25%. Our initial dividend forecast for fiscal 2015 was 11 yen per share. Thanks largely to the increase in profits,
we able to declare an annual dividend of 12 yen per share, up 1 yen
per share. In the immediate future, we plan to pay an annual dividendof 13 yen per share for fiscal 2016. This represents a fourth consecutive
fiscal year of dividend growth. Moving forward, we will continue toreturn profits to shareholders through the payment of dividends in linewith the growth in earnings.
Trends in Cash Dividends per Share
Period-end

¥12
¥10
¥8

6.5

Interim

¥13
6.5

¥7

¥7

3.5

3.5

4.5

3.5

3.5

3.5

5.0

5.5

2011

2012

2013

2014

2015 2016 Forecast (FY)

5.0

remain a trusted member of society while flexibly adapting to thechanges of each era, we recognize the important need to thoroughly
promote corporate governance as the foundation of every facet ofour business activities.
With the common understanding that governance must remain acore component of management, we adopted the principles ofJapan's Corporate Governance Code in November 2015. Based onthese principles, Tokyu Fudosan Holdings is dedicated to fulfilling its
duty of accountability to stakeholders, clarifying the roles andresponsibilities of the Board of Director, Audit & Supervisory Board
Member, and the Audit & Supervisory Board, and engaging in constructive dialogue with shareholders.
In June 2016, Tokyu Fudosan Holdings newly appointed two outside director bringing the total number of outside directors to three.
Working to upgrade and expand corporate governance on a continuous basis and to further enhance the transparency and fairness ofmanagement, we also established the Nomination andCompensation Advisory Committee. Operating as an advisory body,meetings of the Nomination and Compensation Advisory Committee
are scheduled to take place from the second half of 2016.
Moving forward, Tokyu Fudosan Holdings will make every effort
to deepen its Group management and to consistently strengthen
corporate governance in a bid to ensure bold and timely decisions.

6.5

Data prior to the fiscal 2013 interim dividend reflects dividends paid by Tokyu Land
Corporation.

Tokyu Fudosan Holdings also places considerable emphasis on
upgrading and expanding its shareholders' incentive programs. With
the aim of attracting long-term investment, the Company began providing a wide range of Tokyu Hands products as well as vouchers formany of the Group's facilities for the benefit of shareholders.
Tokyu Fudosan Holdings held briefing session in March 2016. Thissession was an opportunity for the Company to provide individual
investors with a deeper understanding of the Group's management
strategies and business activities.
In the future, the Group remains committed to engaging in management that fulfills the expectations of shareholders and further
enhances stakeholder satisfaction.

Corporate Governance

We will increase the transparency and fairness ofmanagement while building a reliable andtrustworthy brand.
Over the past year, I have paid particular attention to strengthening
the necessary framework to further enhance the transparency andfairness of our management. This attention was based on the need to
put in place a robust management platform.
Tokyu Fudosan Holdings is a comprehensive lifestyle company thatviews people and lifestyles as a whole. Our overarching goal is tohelp create beautiful living environments together with our customers. As a member of the Tokyu Group, we are committed to enhancing the value of the Tokyu brand, which has come to be associatedwith “comfort and reliability." With this in mind, and in order to further
enhance the value that we have nurtured over many years and toCompliance and Risk Management

We will reinforce our sound management
structure and systems by upgrading our internal
control framework.
In addition to efforts aimed at strengthening corporate governance,
the Tokyu Fudosan Holdings Group recognizes that compliance androbust risk management are vital to ensuring a sound business
management platform.
With this in mind, we have put in place a Group-wide Code of
Conduct in order to ensure that our directors and employees are
fully aware of the need to comply with statutory and regulatory
requirements. At the same time, we distribute a compliance manualand conduct periodic classroom and online training. Through thesemeans, we are placing the utmost importance on compliance.
As far as each Group company is concerned, steps have beentaken to set up individual departments and to designate specificofficers to assume responsibility for overseeing compliance. By formulating and promoting action plans (compliance programs) withthe aim of ensuring compliance, each Group company is adhering
strictly to a policy of compliance.
The Group has established a comprehensive framework to ensure
the proper management of risk. In addition to the GroupManagement Committee and the Board of Directors, efforts are
made to address the Group's risk management requirements
through the Risk Management Committee and responsible officers
at each Group company. We evaluate and analyze the likelihood ofa risk occurring as well as the impact of each risk. Based on the
results of this analysis, the Risk Management Committee identifies
important risks on a continuous basis.

3 th
A Commitment from Top Management

The number of overseas visitors traveling to Japan is increasing at a fasterthan expected pace. The government has revised its estimate for thenumber of inbound tourists visiting Japan each year from 30 million to
40 million by 2020, and has set a target of 8 trillion yen in spending byoverseas visitors. Against the backdrop of a shrinking domestic market,
the government has also positioned efforts to nurture the tourism industry as a key pillar of its growth strategy. Based on these trends, the Tokyu
Fudosan Holdings Group is ramping up efforts to capitalize on thisupswing in inbound demand.
As mentioned previously, Tokyu Plaza Ginza was recently unveiled in
one of Tokyo's premier upscale shopping districts. This commercial facility boasts one of Japan's largest in-city airport-style duty-free shops, thefirst such concept by a developer, and caters to the needs of foreign travelers visiting Ginza.
Ideally located in close proximity to the landmark Kabuki Theater,
Tokyu Stay Ginza opened in March 2016. As a part of efforts to open facilities in popular inner-city locations, the Tokyu Stay chain of hotels is
experiencing an upswing in the number of overseas guests as it helps tofill the considerable void attributable to robust demand. As a chain ofurban-type hotels that caters to the needs of businesspersons and tourists, Tokyu Stay will expand its operations into major regional areas where
inbound demand is projected to increase.
In this vein, the Group plans to address burgeoning demandacross a wide range of regions. In addition to its ski resort in Niseko,
Hokkaido, the Group will pursue other developments to meet theneeds of overseas visitors including the Seragaki Hotel Project (tentative name) in Okinawa.
As a pioneer in the DIY market, Tokyu Hands, Inc. is also attracting considerable interests from foreign travelers. Working mainly through its
flagship stores in Shibuya, Shinjuku, and Ikebukuro, Tokyu Hands is establishing a dominant brand presence through its lineup of unique “Made inJapan" product lineup.

opportunities in the global market. The experience gained will allow us
to move forward to the next step.
In China, our activities involve the contract management of serviced
apartments mainly for Japanese businesspersons working in Shanghai.
As a massive real estate market that continues to experience growth, wewill leverage the experience and know-how gained in Japan to expand
our overseas business activities.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 22

% of operating revenue(Fiscal 2015)

CSR Management

We are promoting a sustainable Group by satisfying
customers, building a pleasant workplace, andaddressing environmental concerns.
Sustainable growth stands on the deep trust of society, customers, shareholders, investors, and the employees of the Group.
The Tokyu Fudosan Holdings Group strongly believes that its corporatesocial responsibility (CSR) activities provide the underlying strength of its
business activities as well as a wellspring for corporate growth. Based on
this belief, we have placed CSR as an important management priority.
Driven by the Group's CSR vision, the Group works diligently to solve
many of society's problems through its business activities. Making themost of our attributes as a comprehensive real estate company, we areendeavoring to increase the satisfaction of all stakeholders. To this end, we
strive to create an abundant society through a variety of activities including efforts to build a rich aging society through our senior business andreinvigorating regional areas through the use of real estate stock andvacant housing.
The Group has set realizing customer satisfaction, building a pleasantworking environment, and being responsive to environment changes as
its three core CSR challenges under its Value Frontier 2020 medium- andlong-term management plan “Value Frontier 2020”. Furthermore, wehave established three councils, namely the Compliance Council,
Environment/Social Contribution Council, and Diversity Council as subcommittees of the CSR Promotion Committee that lead management
activities across the entire Group in their respective areas of focus.
Here, I would like to pay particular attention to the work of Diversity
Council. Since assuming the position of president, I have repeatedlycommented on the importance of promoting diversity and ensuring
proper work-life balance. It is vital that the Group provides opportunities
that allow all staff including female employees to fulfill their potential

and make the most of their diverse attributes. Only in this manner will
we be able to generate new innovation and as a result become a groupthat enjoys sustainable growth through the continuous creation of value.
Taking the aforementioned into consideration, we must strive to domuch more than just go through the motions. It is imperative that wework hand in hand with employees to maintain and promote good
health both in mind and body. Every effort must be made to build aworkplace environment in which employees can go about their duties
with a sense of energy and enjoyment.
My greatest aspiration is that the 19,000 or so employees who work at
more than 100 of the Group's companies come together as one to participate in health and productivity management. Through collaboration
and a strong sense of unity, we will be well place to not only enhance
management efficiency, but also to realize a vibrant organization. Playing
a robust leadership role, I am committed to the building a pleasant working environment as quickly as possible.

The Tokyu Fudosan Holdings Group's CSR

4th Chapter

Value Creation
Strategy

30.8%(Excluding Elimination/Headquarters)

Urban Development Segment — P27
The Urban Development segment provides optimal solutions for a variety of needs related
to urban real estate, such as the development and management of office buildings andcommercial facilities, complex redevelopment projects, real estate investment trusts
management, and residential leasing and management.

% of operating revenue% of operating revenue(Fiscal 2015)(Fiscal 2015)

14.0%

17.3%

(Excluding Elimination/Headquarters)(Excluding Elimination/Headquarters)

We will work on creating solutions for social issues throughour business activities and in the process enhance
the satisfaction of stakeholders.

Value Frontier 2020 Three Priority CSR Issues
Realizing customer
satisfaction
Building a pleasantworking environment

Being responsive toenvironment changes

Promoting a sustainable society and company
while enhancing corporate value

Residential Segment —P31
The Residential segment offers comprehensive solutions that provide
customers with abundance in their lifestyles through the sale of highquality, comfortable residential properties that include condominiums
and detached housing.

Property Management Segment — P33
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 and repairs, for condominiums, officebuildings, commercial and public facilities.

% of operating revenue% of operating revenue(Fiscal 2015)(Fiscal 2015)

9.6%

10.7%

(Excluding Elimination/Headquarters)(Excluding Elimination/Headquarters)

Aspirations of Group Management

We will take anticipatory action before change andcontinuously seek out new challenges in a flexible
and bold manner.

Real-Estate Agents Segment —P35

With the risk of sounding repetitive, the Tokyu Fudosan Holdings Groupis dedicated to creating new lifestyles while helping to realize a rich andabundant society. Our goal of becoming a corporate group that continues to create value is grounded in efforts to nurture a close affinity withpeople at home, at work, and at play, and to become the preferredchoice of customers across every aspect of life.
In order to achieve this goal and to ensure that we take a major leadforward over the medium to long term, it is vital that we take anticipatory action before changes occur and to continuously seek our new challenges in a flexible and bold manner. As we work toward this end, I am
confident that our diversity and unique attributes will hold us in goodstead. Moving forward, we will adopt a comprehensive outlook andaccelerate the pace of Group management with the aim of addressingchanges in the environment and forging an indispensable position insociety.
As we work toward achieving our goals, we kindly request your continued support and understanding.

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

23 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report% of operating revenue% of operating revenue(Fiscal 2015)(Fiscal 2015)

11.4%

6.1%

(Excluding Elimination/Headquarters)(Excluding Elimination/Headquarters)

Tokyu Hands Segment —P39
Yuji Okuma
President and Chief Executive Officer
Tokyu Fudosan Holdings Corporation

Wellness Segment — P37
The Wellness segment helps customers create a wealth of high-quality time through crossbusiness collaboration in the fields of leisure, senior citizens and health, by developing andmanaging resorts, leisure facilities, sports clubs and senior housing.

The Tokyu Hands segment provides people with the excitement of leading creative
lifestyles through the sale of hand tools, materials and parts for residences and lifestyles.

Innovation Business Segment — P41
The Innovation Business segment develops overseas businesses, and creates and promotes
new business fields, such as custom-built houses, renovation projects and greenification.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 24

4th Chapter

Value Creation Strategy

Making the Most of Group Synergies
We are focusing the Group's resources on Ginza, Japan's leading commercial district.
Tokyu Plaza Ginza opening

Focusing Tokyu Group Resources,
Generating Synergies
A rallying point for Tokyu Group company resources, Tokyu Plaza Ginza
realizes a design that is reflects Ginza in both soft and hard aspects whilebringing a unique style not seen before there. Operated by commercial
facility management specialist Tokyu Land SC Management, Tokyu Plaza
Ginza is the culmination of the Group’s accumulated expertise and synergies. Consequently, Tokyu Plaza Ginza provides unique, new value andinspiration through Tokyu Department Store’s new-concept select boutique HINKA RINKA and Tokyu Hands’ culture mall that features a cafe
HANDS EXPO.
This facility also offers events in collaboration with Bunkamura, a diversified cultural complex and culture wellspring in Shibuya.

Tokyu Department Store HINKA RINKA

Embodying the Japanese words hinkaku (dignity) and rin (grace), HINKA RINKA is a newconcept in select fashion boutiques that proposes a fashion culture for mature adults who
have an entirely new sense of value. HINKA RINKA offers a lineup of the finest items
selected both inside and outside Japan by the most discerning buyers in a unique,attractive, culturally rich atmosphere that blends together a wide array of spaces.

Tokyu Hands, Inc. HANDS EXPO

Under the concept of cultivating and connecting culture, HANDS EXPO is divided into fiveculture zones themed on wa (harmony), miyako (metropolis), chi (knowledge), bi (beauty),
and syoku (food). Beyond featuring a wide array of products, HANDS EXPO brings people
together to provide them with an attractive and fun shopping experience.

Holding cultural events in collaboration with Bunkamura

Joining up with Bunkamura, Tokyu Plaza Ginza expresses new forms of culture throughcollaborations that extend beyond genre by holding cultural events that include music,
traditional crafts/entertainment, and art oriented toward adults who gather in Ginza.

Tokyu Land SC Management operations

As a company that specializes in commercial facility management, Tokyu Land SC
Management operates facilities that offer comfort and safety to all customers based on its
experience accumulated to date from managing facilities developed by the Tokyu Land
Corporation.

Tokyu Community Corp management

As a diversified real estate management company, Tokyu Community Corp provides safe
and comfortable environments using its high level of expertise and skill mainly in the areasof building management and facility maintenance.

Developing a large complex that combines condominiums with senior housing facilities
Creating communities that offer fulfilling lifestyles to multiple generations

KIRIKO LOUNGE
Large atrium space with an approximately 27-meter high ceiling

Tokyu Land Corporation is making progress in the Setagaya Nakamachi

addition to aiming to facilitate interactions among multiple generations

Project as part of its community develop plan for 2017 involving the con-by providing cultural spaces, community salons, and certified daycare

struction of a large complex that combines condominiums with seniorcenters, this project will create communities where multiple generations

housing facilities. Beginning in Tokyo in 2014, the first phase of this proj-

can continue living in, which includes a combined regular/on-call visit-

ect involved selecting a business model for maintaining residences thating nursing care and small-scale/multifunctional home nursing careenable senior citizens to live in close proximity to various other residents.

office, and a comprehensive community care-related system. This com-

The project also has set aside a land area of around 10,000 tsubo, upon

plex provides current BRANZ residents with the option of moving into

which a combined BRANZ condominium and Grancreer senior housing

Grancreer residences on the same property in the future.

complex will be built along with a Community Plaza shared facility. In

Looking ahead, we will undertake a project that offers a model for sustainable residential properties in the Midori Ward, Tokaichibacho area of
Yokohama. Through this project, we will promote the building of
next-generation suburbs that support diverse lifestyles and interaction

4 thamong local residents by offering high-quality residences and communi-

Exterior features an Edo kiriko design

Tokyu Plaza Ginza: A Large New Landmark Commercial
Facility in the Heart of Ginza

Setagaya Nakamachi Project

Value Creation Strategy

ty spaces that facilitate an atmosphere of prosperity.
KIRIKO TERRACE(rooftop)
GREEN SIDE features
abundantly greenery
WATER SIDE ischaracterized by its
wide basin

Tokyu Cosmos Club Group-wide Members' Only Organization

Tokyu Plaza Ginza opened its doors in March 2016 as a commercial facility locatedin Ginza, Japan's leading shopping and cultural district. Developed under the concept, “Creative Japan: The world becomes exciting from here," Tokyu Plaza Ginza

The Tokyu Cosmos Club is an exclusive Groupwide member's only orga-

to boost customer satisfaction Groupwide. Growing to over 82,000

has become a new landmark in Ginza—a place where tradition and innovation

nization run by Tokyu Fudosan Holdings Corporation. Recruiting mem-

members since starting in November 2014, Cosmos Club has forged aharmoniously coexist—with its exterior featuring a traditional Edo kiriko motif

bers among various customers who have used our products or services

new partnership with Group customers.

(type of cut glass that Tokyo is known for) and contains stores that combine highthe Tokyu Cosmos Club aims to enrich the daily lives of our customers byclass with the latest trends. As part of our proactive efforts to contribute to theproviding various services such as the shopping, sports clubs, and otherlocal community and preserve the environment, Tokyu Plaza Ginza is equipped

amenities, invitations to original music, art, and cultural events, and offer-with emergency power generators and storage facilities for disaster relief supplies,

ing information on each Group company via the member newsletter

maintains a business continuity plan (BCP), and addresses biodiversity by upgrading the adjacent Sukiyabashi Park and installing a rooftop garden.

25 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Upgrading of the adjacent Sukiyabashi Park coincided with the
opening of Tokyu Plaza Ginza

Cosmos. Making available amenities through opportunities to purchaseproducts and use services offered by the Group, Cosmos Club is working

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 26

4th Chapter

Value Creation Strategy

Urban Development Segment
Business Results Trends

Number of rental housing units
under management
Office building floor space

646,000 m2
59 buildings

Number of corporate housing
units under management

95,084 units

Operating income(Billions of Yen )

250
200
150

Assets under management

934,000 m
29 buildings¥644.1 billion

2

50
0

Business Model

258.7

267.4
Residential
leasing, etc.

44.8

17.3%

38.7

243.4

17.8%
43.3

Asset
management,
etc.

14.5%

100

Commercial facility floor spac

Leasing(Commercial
facilities)
Leasing(Office buildings)(%)(ten thousands yen)50

523,770yen 2.5

40

4

2.0

30

3

1.5

20

2

1.0

1

0.5
0.9 %

10

2014

2015

Operating revenue

Operating income

2016 Forecast

0

(FY)

Operating income ratio

In fiscal 2015, the fiscal year ended March 31, 2016, the segment posted

Companies

operating income of ¥44.8 billion, up 15.8% compared with the previous

buildings and commercial facilities etc.) as a result of new properties
The Tokyu Fudosan Holdings Group
Asset management, property management, etc.

Improve asset value

Disposal

PrivateREIT
Broadia Private REIT, Inc.

becoming available, revenue from the sale of buildings for investors
included in asset management etc. declined. Operating income increasedon account of better margins stemming from an increase in prices forbuildings sold for investors, in addition to higher profits from new properties coming into operation.
For fiscal 2016, the fiscal year ending March 31, 2017, the Tokyu Fudosan
Holdings Group estimates operating revenue of ¥243.4 billion, down 5.9%,
and operating income of ¥43.3 billion, down 3.2% on a year-on-year basis
in the segment. Although new properties such as the Tokyu Plaza Ginza
will boost revenue and profit, the Group anticipates a decline in profit
owing to a decline in revenue on the sale of buildings to investors.
Turning to the redevelopment of areas around Shibuya Station andnew large-scale redevelopment products, the Group is showing steady

Recoup investment

Urban Development Segment

progress. Work on the Dogenzaka 1-chome Block Development Project infront of Shibuya Station remains on schedule and construction has newly
commenced as a part of the Nampeidai Project (tentative name), which

6

Private funds and change in size of
J-REIT market(Trillion of Yen)
20.0
17.6

3.0

0

Segment Strengths

17.5

16.1

15.0
11.2
10.0

8.3

15.1
12.6

14.0

14.8

No. 1 presence in the greater Shibuya area (office buildings andcommercial facilities)
Growth in asset management
Excellent office building portfolio
business
Ratio of relatively new assets since
2001: 60%
Ratio of assets in four central wards ofTokyo: 78%(year/
month)TOKYU LAND CORPORATION: Rents(office buildings, per tsubo /monthly)
TOKYU LAND CORPORATION: Vacancy rates(office buildings and commercial facilities)

600

9.0

Other

22%

5.0
0.0

(Billions of yen)
800

2012/
12

2013/
12

J-REIT

2014/
12

78%

Private funds

0

13/3

14/3

15/3

(year/
16/3 month)

AUM*1 API: Activia Properties Inc.
*2 CRR: Comforia Residential REIT, Inc.

Office building area distribution

Source: Sumitomo Mitsui Trust Research Institute

556.8

200

Chiyoda-ku, Chuo-ku
Minato-ku, Shibuya-ku
504,000 m2 in 45 buildings(year/
2015/ month)
12

529.6

API*1

644.1

400

Four central wards of Tokyo
2011/
12

480.1

Private funds

CRR*2

Medium- and Long-Term Targets and Strategies

Becoming the Leader in the Greater Shibuya Area
In the Urban Development segment, the Tokyu Fudosan Holdings Groupaims to improve its earnings potential and presence through large-

the future, such as airport concession areas.
Over the longer term, the Group plans to expand its assets in thescale urban developments by 2020. We also aim to become the leader ingreater Shibuya area by taking on large-scale redevelopment projects in

the greater Shibuya area, a field of strength.

Shibuya (see page 29 for details).

Our business strategy first entails developing properties and making

We also aim to enhance brand recognition by improving customer sat-new investments to establish a firmer position. Following on the open-

isfaction, while moving forward with the development of assets withing of the Tokyu Plaza Ginza in March 2016, we are making steady progressstrong roots in local communities and in harmony with the naturalon other large-scale projects, such as the Shibuya Station Redevelopment

environment. Based on our branding concepts of “building smiles" for

Project, as well as the Takeshiba Block Development Project (tentative

office buildings and “It's Always You" for commercial facilities, we are step-name), which has been designated a National Strategic Economic Growth

ping up operations that center on our customers. Through the develop-

Area. The Group aims to expand its portfolio based on a cyclical reinvest-

ment of office buildings and commercial facilities with plenty of greenery

ment model that invests in already operating properties. Next, we aim toand little impact on the environment, thanks to our accumulated environ-improve the quality of our asset portfolio. We are reshuffling assets in ourmental technologies, we contribute to the reduction of CO2 emissions andportfolio to appropriately manage it with the objective of building a high-the preservation of biodiversity. We aim to provide our customers withly profitable asset portfolio. Moreover, we aim to expand fee-based earn-easy working and living environments.

ings through growth in the asset management business, such as REITs and4 thValue Creation Strategy

Activia Properties Inc.
Comforia Residential REIT, Inc.

Property transfer

Development and acquisition

Ownership

ListedREIT

Although operating revenue increased in the leasing business (office

Purchase

Real estate

Investment

Dividends

Rent, etc.

Provideproperties
and services

fiscal year, on operating revenue of ¥258.7 billion, down 3.2% year on year.

Management

Improvement in vacancy
rates and rents

60

Overview of Fiscal 2015 Results and Outlook for
Fiscal 2016
Customers

Individuals

Operating revenue(Billions of Yen )300

79,401 units

Changes in the Market Environment

07
/
08 3
/
09 3
/
10 3
/
11 3
/
12 3
13 / 3
/
14 3
/
15 3
/3
16
/3

Segment Overview (As of March 31, 2016)private funds. In addition, we are working to develop new types of properties. We plan to develop new properties and expand into new businesses while monitoring trends in government policy and demand related toinfrastructure business and public-private collaboration likely to grow inentails the redevelopment of the former office building of Tokyu Fudosan
Holdings and Tokyu Land Corporation.

Shin-Meguro Tokyu Building Brings Smiles to Working People
The Shin-Meguro Tokyu Building is our first
office building that embodies our “building
smiles" concept. It is a new kind ofenvironmentally friendly office building thatbrings business and nature together in thesame space. On the roof of the building, wehave created a green paradise that helps
preserve biodiversity alongside a “workgarden" completed with power outlets and
LAN connections, offering employees thestylish option of working outdoors.
Nihombashi Maruzen
Tokyu Building

Nihombashi Front Building Kasumigaseki Tokyu
Building

27 TOKYU FUDOSAN HOLDINGS 2016 Integrated ReportMorinomiya Q's MALL BASE (Opened in April 2015)

Tokyu Plaza

Q Plaza

Q's MALL

Market Square

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 28

Feature 1

Feature 2

Securing a Presence in the Greater Shibuya Area

Tokyu Housing Lease Corporation's Growth Strategy

I

E

H

D

Advancing Development of the Greater Shibuya Area

Background to Establishment

The Tokyu Fudosan Holdings Group defines the greater Shibuya

The housing market in Japan is projected to grow on the back

A

G

B

C

F

Features of Shibuya

area as the areas including Aoyama, Omotesando, Harajuku,
Ebisu and Daikanyama that surround Shibuya, its main base forApproximately 3,000,000 passengers
use the station each day

many years. We have designated the greater Shibuya area as a

Low vacancy rates

High rents for office buildings

key area for urban development. As one of the central parts of

Vacancy rates in Tokyo

Tokyo Business Center: Trends in Average Rents

Expandfieldsand commenced operations
incoreAprilbusiness2015 withthe aim ofTokyo, the greater Shibuya area is a major hub of commercial

7.0
(%)

(Yen/tsubo)

6.0

20,000expanding business further after
the rental housCoreconsolidating
businesses

With a growing number of IT firms locating here in recent years,
this extremely attractive region is internationally competitive,

2.00

and play.

14,000around Shibuya Station that aim to create an entertainment

2014

Five major wardsof TokyoTokyo commercial business district
Minato Ward

Shibuya/Ebisu area

Source: CBRE, Inc.

Concentrationof growing IT firms
（万㎡）
160

Numberof IT144
firms established
140

Shibuya region. We aim to create whole communities aroundthe Shibuya Station area.
The Group will continue to develop the greater Shibuya area

96
59
25

37

Chiyoda Ward
Shinjuku ward

17

Shinagawa

他 Tokyo
区 / Marunouchi

Location of properties in the greater Shibuya areaA

* Activia Properties Inc.

Shibuya Station

B

Keio Inokashira Line

Daikanyama Station
Ebisu Station

Tokyu Toyoko Line

Shibuya Sakuragaoka Block
Redevelopment Plan
Floor space: About 252,870 m2
Building size:
A District: 37 floors above ground, 4
floors below ground
B District: 32 floors above ground, 2
floors below ground
C District: 4 floors above ground
Use: Offices, retail stores, residential,
churches, parking, etc.
Planned completion date: 2020

The greater Shibuya area

C

1998

2003

2008

2013 (year)

Number of house

Source: Japan’s Ministry of Internal Affairs andCommunications: Housing and Land Survey

10

I

E

H

2000年～2003年

One of Tokyu Housing Lease Corporation’s advantages is its

2004年

ability to propose optimal solutions for customers’ needs (i.e.,

Assets under management
A

Number of rental housing
assets under management

property owners) by leveraging its accumulated know-how.
This allows us to build strong relationships based on trust with

79,401 units

property owners. Tokyu Housing Lease Corporation's biggest

C

G

B

Number of corporate housing
units under management
F

95,084 units

Service provider

strength is its leading
number of rental housing units under
6,000
2%

5,000
management in central
metropolitan areas where rents are

Geographic distribution of rental
housing under management

4,000

Expand core business fields high. With a broad range of properties under management in
3,000Core businesses

12%

this high-rent market,2,000
we are able to offer tenants a variety of
1,000

products and services. Anotherstrengths lie in our “challeng0
1968

1973

1978

1983

1988

1993

1998

er’s DNA,” a spirit that is deeply rooted within the Group, and

2003

2008

2013 (year)

Number of house

Tokyo metropolitan area
Kansai region
Other regions
Total 79,401 units

86%

C

Nampeidai Project (Tentative
name)
Floor space: About 46,954 m2
Building size: 21 floors above
ground, 1 floor below ground
Use: Offices, assembly halls,
parking, etc.
Planned completion date: 2019

Pivoting toward Longer-Term Growth
Tokyu Housing Lease Corporation is realizing the benefits fromreside in Japan. We aim to broaden the range of assets handled

integration that leverage the collective strengths of the Group,

beyond rental housing, and increase the value-added of assets

and is differentiating itself from other companies by reformingwith IoT while offering better services to tenants. Over theits business.

medium and long term, we intend to strengthen collaboration

Through integration and the use of information collectedwith other industries by leveraging the strong relationships offrom within and outside the Group, as a member of the Tokyu

trust built on managing and operating rental housing assets.

Fudosan Holdings Group, Tokyu Housing Lease Corporation will

Tokyu Housing Lease Corporation is pivoting toward becoming

propose solutions to customers that increase the value of theira full service provider that is able to provide one-stop services

assets and solve their individual problems. We plan to securethat meet the asset management needs of its customers

business opportunities by expanding the number of units

beyond real estate.

4 thValue Creation Strategy

B

3

Dogenzaka 1-chome Block
Development Project
Floor space: About 58,680 m2
Building size: 18 floors above
ground, 4 floors below ground
Use: Retail stores, offices, parking,etc.
Planned completion date: Fiscal
2019

Meiji-Jingumae Station

A

1993

Future Projects● Redevelopment business● Commercial facility● Office building● Properties held by API*

ute

1988

A Business Model that Leverages Group Strengths

our willingness try out new ideas without hesitation.

Ro

1983

Number of household

Number of household

Omotesando Station

1978

7,000

Source: Tokyu Research Institute, Inc.'s Report on Survey of IT
Firms in Shibuya (December 2013)

Harajuku Station

1973

developers.

Chuo Ward
Shibuya Ward

2000– 2003
2007– 20092004– 2006
2010– 2013

24 18
新宿
区
Shimbashi/ Shiodome

品川区
Ikebukuro

中央区
Harajuku/ Omotesando

港区
Roppongi

千代田区
Ginza / Yurakucho

渋谷区
Shinjuku

300 120250 100
200
80
150
60
100
40
20
50
0
0

Shibuyaamenities.

1968

D

es and entertainment venues that represent the best of thewith the aim of establishing a No. 1 position there by creating

2016

Source: Miki Shoji Co., Ltd.: Current Office
Building Market Conditions in the Five Central
Wards of Tokyo

mecca in Shibuya by bringing together workplaces, residenc-

0

totaled 79,401 units, one of the largest among major real estate

5 6 7 8 9 10 11 12 1 2 3 4 5Tokyo metropolitan a
Kansai region
Other regions
Total 79

1,000

of March 31, 2016, rental housing assets under management
2015

2015

Roppongi/
Akasaka area

3,000
2,000

raising customer satisfaction by providing one-stop services. As

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

2013

The Group participates in large-scale redevelopment projects

5,000
4,000

ing operations of the Group, while improving efficiency and16,0001.0

6,000Service provider

drop, Tokyu Housing Lease Corporation was established in 2014

18,0003.0

drawing in Japanese people and foreign nationals to live, work,

bustling communities with high-value-added attractions andhousing stock, which remains steady. Against this market back-

5.0
4.0

(10,000 units)
7,000

of new housing starts and improvements in the longevity of

Major hub of commercial andcultural activity

and cultural activity that is always bubbling with new ideas.

Trends in Housing Stock and the Number of Households

under management while reducing costs through improvements in business efficiency.

Future Vision for Tokyu Housing Lease Corporation

First of all, we aim to expand fee-based business in the stable
stock housing market by increasing our presence in core business fields. In addition to expanding operations from major
metropolitan areas to large outlying cities in Japan, we willaddress the needs of customers heading overseas or coming to

7,000Service provider
Expand core business fields
Core businesses

6,000
5,000
4,000
3,000
2,000
1,000
0

29 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

1968

1973

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 30

1978

4th Chapter

Value Creation Strategy

Residential Segment
Business Results Trends

Segment Overview (As of March 31, 2016)

Changes in the Market Environment

Operating revenue

Fiscal 2015
Number of houses built forsale supplied

Operating income(Billions of Yen )
120
104.8
Other
100

2,143 units

117.7

116.7

(Billions of Yen )
15.0

7.6%

12.5

Detached housing

80

Tokyo metropolitan area

1,190 units

60

Kansai and other areas

40

5.2%

Condominiums

953 units

10.0

8.9

5.9%
7.0

7.5

5.5

5.0

By sales area, stable number of units supplied and rises in average prices

2014

2015

2016 Forecast

Operating revenue

Operating income

0

(FY)

Operating income ratio

Cumulative Total of the Number ofCondominiums Supplied (Total)

BRANZ CLUB

(Units)80,000(Millions of Yen)
60

60,00045

Number of members(As of March 31, 2016)

40,00030

Approx. 187,000

20,00015

002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (year)

88,000 units* Includes certain joint business activities.

2.5

20
0

Segment Strengths

No. of units supplied (Tokyo metropolitan area)
Average price (Tokyo metropolitan area)

Membership-based organization
for customers who would likeresidence information

Services for unified Group subscribers(sales, after-sales services, management)

No. of units supplied (Kinki area)
Average price (Kinki area)

Source: Real Estate Economic Institute Co., Ltd.

Overview of Fiscal 2015 Results and Outlook for
Fiscal 2016

Business Model
Residential Segment

In fiscal 2015 , the fiscal year ended March 31, 2016, our Residential busiSite disposals

Site acquisition
Land fees

L an d ow n e r s
R e al e s t ate
a g e nt s

Interviews

Planning
Feedback

Cus to m e r s

Sales

Sales
Acquisition fees

Provision ofcustomer needs

Individuals

Business Segment

Management
associations

increased 12.3% year on year to ¥117.7 billion, and operating income

As stated as its business strategy under Value Frontier 2020, the Residential

jumped 26.0% to ¥7.0 billion. Despite recording sales of condominium

business is aiming for the “construction of a framework able to create sta-units at Branz City Shinagawa Katsushima, Branz Totsuka, and Branz Tower-

ble income" and the “establishment of a presence" that comes first to theviding peerless design, quality, services and value as well as by undertaking

Wellith Shinsaibashi North, revenue declined due to the year-on-yearminds of customers considering the purchase of a residence. At the same

quality control to its own criteria, the Residential business is also tapping into

downturn in the number of condominium units sold and other factors.

time, the Residential business will provide products of choice for customers

the preferences gleaned from its BRANZ VOICE activities, which in a variety ofHowever, an increase in the bulk sale of land included under “Other" in theby creating added value integrating acquisition, planning, sales, after-sales

forms listen to what customers are saying. The plan is to focus on the creation

breakdown of sales contributed to growth in revenue and income.

services and management.

of value-added by product development in response to diverse needs.

growth over the medium to long term.
Aiming to supply “residences that excite once again after 30 years " by pro-For fiscal 2016 , the fiscal year ending March 31, 2017, revenue is

The Residential business is thus firstly addressing the strengthening of its

Based on the needs of the market, the Residential business will promote theexpected to decline while earnings are forecast to increase. In specificsite acquisition capabilities and the enhancement of business opportuni-planning of products that realize high value-added. At the same time, theterms, operating revenue is projected to decrease 0.9% year on year, toties, while participating in complex redevelopment projects and continuing

company will work to enhance the satisfaction of customers while expanding¥116.7 billion, and operating income is anticipated to grow 27.3% year on

to promote the development of its large-scale flagship properties of thebusiness opportunities by providing a diverse range of housing and services.

year, to ¥8.9 billion. Despite a fall in revenue due primarily to a reduction in

future. In addition, the Residential business will further entrench its presence

the bulk sale of land, operating income is forecast to increase. Althoughby strengthening its stronghold areas along Tokyu railway lines and else-management and brokerage as one of its strengths, the Residential businessthe number of condominium unit sales is estimated to decline, growth inwhere by means of its area-dominant strategies, while continuing to pur-will devise ways to improve customer satisfaction by upgrading andrevenue is expected on the back of higher average selling prices and grosschase stock in existence, such as for reconstruction projects and property

expanding its BRANZ Support subscriber service that realizes high-quality

margins as a result of increased sales of high-end property units. Looking

renovations that leverage the Group's capabilities.

daily lifestyles for customers at each stage of their lives. Also focusing on

at conditions for the sale of condominiums, trends are expected to remain
Consignment

Provision of Products of Choice for Customers by Creating Added Value Integrating“Acquisition, Planning, Sales, After-Sales Services and Management"

In addition, having declared “residences that master life” as its brand con-

Regarding collaboration with Group companies in such areas as property

environmental efforts, such as the preservation of existing trees, the pro-firm mainly for inner city properties as well as high-end and other units.

cept, the Residential business will aim to improve its brand power in a

motion of rooftop greening and design criteria in compliance with energy

The contract ratio as of the beginning of the period compared with fore-

comprehensive manner and sustainably raise its appeal and product devel-

conservation standards, the Residential business will raise value for the ben-casts for condominium sales in fiscal 2016 came in at 57%.

opment capabilities of choice with the aim of building a foundation for

efit of its customers.

4 thValue Creation Strategy

Property Management

Management

ness recorded increases in both revenue and income; operating revenue

Medium- and Long-Term Targets and Strategies

Project Registered as CO2 Emission Reduction Initiative
Including the world's first Ene-Farm home fuel cell for
condominiums, advanced energy-saving equipment has been
installed at Branz City Shinagawa Katsushima. In July 2015, theproject to reduce CO2 emissions by installing fuel cells at thesame property became the first of
its kind in the private sector in Japan
to be registered as a program-type
emission reduction project on thebasis of Ministry of Land,
Infrastructure, Transport andTourism systems.
Branz The House Ichibancho(Sales commenced December 2015)

31 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Branz Tower Minatomirai(Sales commenced June 2015)

Branz Tower-Wellith Shinsaibashi North(Sales commenced September 2014)

High-spec renovated condominiums “Majes Tower Roppongi"(Sales commenced October 2015)

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 32

4th Chapter

Value Creation Strategy

Property Management Segment

3,000

18

2,500

17

2,000

16

（億円）

（%）

1,500

15

2,500

17

1,000

14

2,000

16

1,500

15

1,000

14

500

13

0

12

Business Results Trends

Segment Overview (As of March 31, 2016)

2014

2015

2016

Changes in the Market Environment

3,000

18

13

500
0

（年）

2014

2015

2016

12

（年）

Segment Strengths
500 (10,000 units)

Number of condominium units
under management

Number of residential properties
under designated management

715,660 units

93,245 units

Operating revenue

Operating income(Billions of Yen )(Billions of Yen )
30

180
150

136.1

120 Buildings, etc.

Of which number ofcondominium units undercomprehensive management

Number of buildings and otherproperties under management(including designatedmanagement properties and PFI
properties)

504,442 units

1,453 properties* Number of units under comprehensive
management: The number of undercontract management from condominium
management associations

5.5%
9.1

8.0

Condominiums

20

5.9%

15
9.0

10
5

30
0

Business Model

25

6.7%

90
60

152.6

145.2

2014

2015

Operating revenue

Operating income

2016 Forecast

0

(FY)

Operating income ratio

Overview of Fiscal 2015 Results and Outlook for
Fiscal 2016
In fiscal 2015 , the fiscal year ended March 31, 2016, our Property Management

Property Management segment

300

129
32
1

5

31

68

97

112

135

2013

2018

2023

135

200
100
0

Built 30 years or more, less than
40 years ago (In fiscal 2015)

97

Built 40 years or more, less than
50 years ago (In fiscal 2015)

1832033 (year)
Built 50 years or more
(In fiscal 2015)

Numbers of condominium units built more than 30, 40, 50 years ago
Source: Promotion of Rebuilding Aging Condominiums (Ministry of Land, Infrastructure, Transport and Tourism)

Number of people responsible for managementadministration (As of March 31, 2016)

1,853

Providing one-stop services that
help maintain asset values

Percentage of certified Tokyu Community
Corporation employees:

93.5 %

Inspection

Number of condominium repair technicians(As of March 31, 2016)

Planning

467 (No. 1 in industry)SupportMedium- and Long-Term Targets and Strategies

Overwhelming No. Inspection
1 Comprehensive Property Management Company

business achieved operating revenue of ¥145.2 billion, a year-on-year increase

The Property Management business aims to be the overwhelming No. 1 com-ness area and productivity, the Property Management business will build aof 6.7%, and operating income of ¥8.0 billion, a year-on-year decline of 11.7%.

prehensive property management company by strengthening its businessstrengthened business base to enable sustainable growth from 2020お客さま
onward.

While revenue grew based on increased stock of both condominiums andbuildings under management, income decreased owing to an increase inbase, multifaceted development in growth fields and expansion of related revePlanning
Supportnues. As a result, the Property Management business will establish a position

Management business will set key performance indicators (KPIs) compiled fromexpenses for strategic investments aimed at maintaining and strengthening

enabling the acquisition of superior information and management resourc-

the results of surveys and set up customer centers as a system for constantly

management systems in a bid to put in place a robust platform for the future.

es and build a management structure that is capable of responding to theacquiring customer feedback. In the area of technical capabilities, a system will

In addition to the newly contracted Futako Tamagawa Rise, we commenced

changes coming to the property market from 2020.

be built to record a building's repair management to enhance asset value main-

個人

法人

With regard to customer satisfaction and confidence, thePropertyマン
ション 、ビ ル 、公 共 施 設

the PFI-operated Clinical Research Center at The University of Tokyo (Hongo).

agement stock and meeting wide-ranging customer needs by leveraging its

will develop health check capabilities and services for the purposes of screening

Leveraging its high-value-added management know-how, our Property

two-brand system relating to condominium and building management, name-buildings and diagnosing any faults. Working environments conducive to fruit-

Management business expanded its outsourcing management of officely Tokyu Community and Community One , respectively. The Property

ful labor will be developed to help maintain and retain specialist humanbuildings and commercial facilities as well as of public facilities.

Management business will also proactively engage in the growth field of pri-

resources, and a particular emphasis will be placed on utilizing 東急不動産グループ
the capabilities

vate sector opening of public facilities, for example by PPP (civil partnerships).

of women and senior-ranking employees to the fullest extent. With regard to

expecting its operating revenue to increase 5.1% year on year to ¥152.6 billion,

Also leveraging the strengths of a comprehensive property group, the Property

business areas and productivity, the Property Management business will accu-

and its operating revenue to climb 11.8% to ¥9.0 billion. We plan to continue

Management business will work to expand its customer segments by strength-

mulate a variety of expertise in facility management operations by making

adding stock of both condominiums and buildings under management while

ening Group collaborations.

For fiscal 2016 , the fiscal year ending March 31, 2017, the segment is

お客さま

inroads into new fields through, for example, M&A and PFI business concession

expanding earnings related to improvements and renovations. Moving for-To bring about the個人
expansion of related revenues from 法人
property man-initiatives. In addition, the utilization of IT will be encouraged to promote busi-

ward, we are anticipating steady growth with the stock of management ser-agement, the Property Management business will deploy initiatives to tap

ness and improve productivity. The Property Management business will also

工事費

改 修 工 事（ 共 用・専 用 ）expected to increase.

管理委託費

comprehensive management is expected to reach 520,000) and the number

管 理 運 営・維 持 保 全 サ ー ビス

vice sites to improve to roughly 780,000 (of which the number of units under

マン ション 、ビ ル 、公 共 施 設
demand for improvements, repairs and renovations that is especiallyIn the meantime, to become No. 1 in customer satisfaction and confidence, technical capabilities and working environment as well as in the busi-

1,500 as of March 31, 2017.

Photo by Shigeo Ogawa

From left: Futako Tamagawa Rise (Condominium andcommercial facility)
Marinart, Shimizu Culture Hall, Shizuoka City (Officeand Cultural facility)
JP Tower Nagoya (Office and Commercial facility)
Planetarium (inside Gotanda Cultural Center )(Educational facility)
From left: Abeno Q's Mall (Commercial facility)
UR rental housing Comfor Kasumigaoka (Multi-unit
apartment)
Kita-Kyushu Airport terminal (Airport facility)
Ogasayama Nature and Sports Park/ECOPA Stadium(Sports facility)
House of Councilors Members' Building (Facility used by
Diet upper house members)

東急不動産グループ

support the recovery of disaster-affected areas and create facilities that lead tothe revitalization of local communities in support of Tohoku reconstruction at
properties under its management, such as the House of Councilors Members'

4 thValue Creation Strategy

tenance and conservation services. In the manner of family doctors, technicians

工事費

management of such large-scale complex facilities as JP Tower Nagoya andConsequently, the Property Management business is expanding its man-of buildings and other properties under management to total approximately

33 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report* Figures are for Tokyu Community Corporation on a non-consolidated basis.

改 修 工 事（ 共 用・専 用 ）Provision of customer needs

Installation costs

Improvement work(common use/occupied areas )Management consignment expenses

Management operations/Maintenanceand conservation services

Tokyu Community Corporation

400

管理委託費

Condominiums, buildings, public facilities

Group companies Real-estate agents, etc

Companies

500 (10,000 units)400
129Top-class in its industry for theComprehensive
property
32
300
number of properties undermanagementbusinessthat manages 135
1
5200variety of properties 97
managementa wide
31
68
183
135
Technologies and human resources capable100of examining,
112
97
0
understanding and proposing solutions
2013
2018
2023
2033 (year)

管 理 運 営・維 持 保 全 サ ー ビス

Customers
Individuals

Increased demand for improvements and renovations due to condominium aging

Building. In specific terms, steps were taken to hold a local food fair.

No. 1 in Real Estate Industry in “Companies That Utilize People" Survey
Tokyu Community Corporation was ranked 44th overall and top in
the real estate industry in the 2015 “Companies That Utilize People"
survey.* The survey examines companies in respect to four suchaspects: hiring and human resource development; diversity
management; childcare and nursing care; and workplaceenvironments and communications. The company was highly rated
for its diverse work systems, mental healthcare policies as well as its
human resource policies for employees to meet their childcare or
nursing care obligations.
* Conducted jointly by Nikkei Inc., Nikkei Human Resources, Inc. and Nikkei Research Inc., the survey
targeted around 1,700 major corporations in Japan and ranked the 454 companies that responded.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 34

4th Chapter

Value Creation Strategy

Real-Estate
Agents Segment¥4 trillion
trillion

3,000

18

2,500

17

2,000

16

1,500

15

1,000

14

500

13

¥8

0

（億円）

（%）

2,500

17

2,000

16

3,000

2013
Segment Overview (As of March 31, 2016) 2025

Tokyu Livable, Inc. network

Fiscal 2015
No. of real-estate agents' transactions

167 locations

21,939(4 overseas locations)

3.18

4.0

million units
No. of real-estate agents' sales staff

million units

1,310

Operating income(Billions of Yen )(Billions of Yen )

90
75
60

13

0

2014

12.7%

Other

10.5

10.2

10

2015

Operating revenue

Operating income

2016 Forecast

2013
Policy objective set by the government of Japan
Source: “Basic National Housing Plan " issued by Japan's Ministry Customers–Looking to sell;of Land, Infrastructure, Transport and Tourism
Individuals Looking to lease–

0

(FY)

Operating income ratio

million units

2025(year)

Consignment
sales

Real-estatesales

Real-estate agents'
fees etc.

Customers–Looking to buy;
Individuals
Looking to lease–

Companies(Wholesale)(Retail)

Individuals(Retail)

activities. The company continued to promote services in an effort to provide individual customers
with a greater sense of security and peace of mind. This included steps to upgrade and expand the

In fiscal 2016, the fiscal year ending March 31, 2017, Real-Estate Agent Segment is expected toCompanies

Real-estate agents' sales
Rental brokerage
Consignment sales
Real estate purchasing

Real-estate sales

fees etc.

Real estate sales

etc.

Customers

Purchase/Sale brokerage
Rental brokerages
Real-estate sales

Looking to lease–(Wholesale)

Rental brokerage

Real estate purchasing
estate purchasingsystems that
increase points of customer
contact. Moreover, we areRealintroducing

will allow us to better visualize customers' needs and are pushing forward a raftReal-Estate Agents Segment(Tokyu Livable, Inc.)
Business Segment

wide range measures to bolster its sales and marketing structure. This includes

as vacant housing and inheritance on a free-of-charge basis.

Current number of real-estateLong-term outlet opening plan

agents' sales outlets
opening Real-estate
newoutlets and increasing
the number of staff. Drawing
on200
the knowApproximately
sales

Tokyu Livable, Incis strengthening
its expertise
Matching
customerneedsas well as its human resource

how gained through its activities in the Tokyo Metropolitan area, the company isdevelopment capabilities with the aim of increasing the satisfaction of custom-

expanding itsReal-estate
coveragewhile increasing profitability by continuously differentiatagents'

ers. We are conducting
range of educational
programs in order to ramp
Brokerage a wide
Consignment
Real-estateConsignment
sales

Real-estate Purchase/Sale brokerage
agents' fees, Rental brokerage
Real estate sales
etc.

fees etc.

155

ing its products and services. In order to capture new opportunities in priority

sales
salesincrease the level of ourup the speedservice
at which we address
customers' needs,

fields, the Group is placing considerable weight on efforts that target a wide
–Looking to buy;

expertise, and raise the quality and depth of our service menu. We are endeavor-

Customers

Individuals
Looking to lease–(Retail)Companies(Wholesale)range of operational
assets including logistics facilities and hotels. Furthermore,

we are actively pursuing opportunities that allow us to secure real-estate agents'
Current number of real-estateagents' sales outlets

155

Commission fees,

etc.

Property
Managementof measures including consultation services
that coversuch wide-ranging areas

Matching customer needs
Brokerage
service(Retail)

Purchase/Sale brokeragesales and Approximately
address overseas investor inbound demand. Striving to extend our cusLong-term outlet opening plan200

tomer base, we are channeling our energies toward strengthening services thating to reform the manner in which work is undertaken in an effort to secure theProperty Management
Business Segment

highest brokerage
quality staff. RecognizingPurchase/Salethat womenare a core source of innovation, we
brokerage
Purchase/Sale
Real-estate
Real-estate agents'
Rentalbrokerage
Rentalbrokerages
are paying particularagents'
attention
femaleemployees
fees, on initiatives that will allow ourfees
etc.
Real
estatesales
Real-estate sales
etc.
to excel. Group company, Tokyu Livable, Inc., has established the Diversity

Promotion Section and is working to upgrade and expand its training and sup-Group as a whole.

port structure and systems.–Looking
With thetoaim
buy;of promoting women to management

Customers

Companies
positions, theIndividuals
goal is to liftLooking
the ratiotooflease–female managers
and section chiefs above

In its retail activities, plans are in place for the Group to open roughly the same number of new out-

Tokyu Livable, Inc. is also looking to secure a top position within its industry

lets as the fiscal year under review. Results are expected to be strong on the back of an increase inacross a broad spectrum of fields. In addition to putting in place a business

5% and 15%, respectively, by 2020.

the number of transactions are other factors. Taking into consideration the upswing in demand in

platform that will attract the acclaim of customers, we are endeavoring toconnection with the purchase and resale of properties, the Group will strengthen its housing reno-

improve productivity and to establish an appealing environment in a bid to
Property Management

New Outlet Opening Plan

ensure medium- to long-term growth. Working to develop value-added services,
Business Segment
A fresh lifestyle of personal choice

Genuine value

February 2012
Established Tokyu
Livable (Shanghai), Inc. a
local subsidiary
ShanghaiHong Kong
May 2014
Took an equity interest in Orange
June 2015
Tee Holdings Pte Ltd
Established a branch inHong Kong
Singapore

Real estate solutions
Embarking on hotel development activities including
project management in Okinawa Prefecture(Retail)Current number of real-estateagents' sales outlets

155(Wholesale)

4 thLong-term outlet opening plan

Approximately

200

Received an Award for Promoting Gender Equality and Work-Life Balance
TaiwanApril 2014
Established Tokyu Livable(Taiwan), Inc. a jointventure company

35 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Real-estateagents'fees,
we arereinforcing
our
we areRentalbranding
brokerage activities. In thisetc. manner,
Consignment
salesendeavoring toreflect the needs of individuals while sharing customer information within the

200

Working to strengthen branding with the aim of increasing recall rate
Leveraging the popularity of well-known personalities throughTV commercials and other advertising

Customers

lion, up 3.7%, and operating income is forecast to grow 3.1% to ¥10.5 billion on a year-on-year basis.

Long-term outlet opening plan

Approximately

Real-estate
sales(year)and to improve profitability. At the same time, Tokyu Livable, Inc. is undertaking a

Enjoying urban life

155

2025

again experience an increase in revenue and profit. Operating revenue is projected to reach ¥83.3 bil-

vation business.

Current number of real-estateagents' sales outlets

The Livable Intermediary Guarantee Service
received the fiscal 2014 Good Design Award.

–Looking to sell;
Individuals Looking to lease–

To this end, the Group is working to expand
the
scale
–Looking
to buy; of its existing businesses
Individuals
Companies

continued to reinforce its existing investment and commercial real estate transactions with the corporate sector. The company also began entering new fields including logistics facilities and hotels.

Consignment
sales

position in real estate transactions in each of its businesses.

company’s Intermediary Guarantee and other services. Tokyu Livable, Inc. also commissioned television commercials using popular artists and personalities. In its wholesale activities, Tokyu Livable, Inc.

Ratio of certified real estatetransaction specialists among realestate agents (including managers): approximately 97%(As of December 31, 2015)

2013

Purchase/Sale brokerage(Wholesale)
Purchase/Sale brokerage
In the Real-Estate
Agents Segment,theGroupReal-estateis endeavoring
toReal-estate
secureagents' the top
Rental brokerages
agents' fees, Rental brokerage

Real-Estate Agents Segment(Tokyu Livable, Inc.)

mately ¥1,200 billion. This was roughly 20% higher compared with the previous fiscal year. In addition,
fiscal year under review, Group company Tokyu Livable, Inc. opened 12 new outlets as a part of its retail–Looking to sell;
Looking to lease–

Real-estate agents' fees
Purchase/Sale brokerage Commission fees,
Rental brokerage
etc.
Real estate purchasing

Real-estateagents' fees,
etc.

wholesale transactions grew 15.1% and 28.6%, respectively, to reach an aggregate total of approxireal-estate sales were up reflecting robust trends in the purchase and resale of properties. During the(year)

Value Creation Strategy

Real-estate Purchase/Sale brokerage
agents' fees, Rental brokerage
Real estate sales
etc.

Purchase/Sale brokerage
Rental brokerages
Real-estate sales

increased for both retail and wholesale real-estate agents’ sales. In terms of their value, retail andmillion units

Increase asset value

Increase asset value

Matching customer needs

formance in the real estate transaction market, the number of transactions and contract prices

Brokerage
service

Customers

Increase asset value

Real-estate agents' sales
Rental brokerage
Consignment sales
Real estate purchasing

Real-Estate Agents Segment(Tokyu Livable, Inc.)

Brokerage
service

Matching customer needs(year)

previous fiscal year. In specific terms, operating revenue climbed 30.9% to ¥80.3 billion and operating
income increased 9.0% to ¥10.2 billion on a year-on-year basis. Against the backdrop of a strong per-Highly acclaimed innovative
services
4.0

Becoming
the Number One in Each and Every Real Estate
Dealing SegmentCompanies
2013
2025
(Retail)(Wholesale)–Real-Estate Agents' Sales, Consignment Sales, and Real-Estate Sales
Businesses–
Real-estate agents' fees
Real-estate agents' sales
Group companies Property management, renovation, etc.

Real-estate agents' fees
Purchase/Sale brokerage Commission fees,
Rental brokerage
etc.
Real estate purchasing

Real-estateagents' fees,
etc.

Group companies Property management, renovation, etc.

Companies(Wholesale)(Retail)

Groundbreaking services that
address customers' needA high level of customer satisfaction(Tokyu Livable, Inc.)
Medium- and Long-Term Targets
and Strategies

In fiscal 2015, the fiscal year ended March 31, 2016, revenue and profit increased compared with the–Looking to sell;
Individuals Looking to lease–

Real-estate agents' sales
Rental brokerage
Consignment sales
Real estate purchasing

Real-Estate Agents Segment

Overview of Fiscal 2015 Results and Outlook for
Fiscal 2016

Comprehensive strengths across abalanced range of real estate
secondary market activities including
the purchase and sale, leasing, andmanagement of properties3.18
forindividuals and the corporate
sectormillionunitsGroup companies Property management, renovation, etc.

Customers

Real-estate agents' fees
Purchase/Sale brokerage Commission fees,
Rental brokerage
etc.
Real estate purchasing

Real-estateagents' fees,
etc.

Increase asset value

2013

Companies(Wholesale)(Retail)

4.0

3.18

million units

Business Model

2025

Group companies Property management, renovation, etc.

2014

Segment Strengths

Highly professional staff

2025

5

15

4.0

million units

million units

2013

Operating revenue

02025
Steps to curtail the numberofvacant houses by thegovernment¥8 trillion¥4 trillion

15

Consignment sales

Purchase/
30 Sale brokerage 9.4

2013

12
Steps2015
taken by the2016
government to revitalize
the existing housing
secondary market

3.18

20

Real-estate sales

45¥8 trillion¥4 trillion

25

12.7%

61.4

2025

14

30

83.3

80.3

15.3%

2013

15

500

¥8 trillion

12

2016

Changes in the Market Environment

1,000

Operating revenue

2015

18

1,500

Business Results Trends

2014¥4 trillion

Overseas business development by Tokyu Livable, Inc.
Establishing bases in the four locations of Shanghai, Taiwan,
Singapore, and Hong Kong

Newly-built condominiums

Newly renovatedcondominiums

BeforeInvestment condominiums

After

L'Gente Liber Uenoinaricho (a newly renovated condominium complex)

Tokyu Livable, Inc. is actively engaged in promoting diversity. The company has
established the Diversity Promotion Section and continues to provide career support toall of its employees. In addition to introducing a mentor program, the company works
diligently to create a workplace environment that allows women to excel. The company
is promoting diversity across a wide range of areas including efforts to increase the ratioof female employees to marketing personnel in the realestate agents' sales business. Tokyu Livable, Inc. was thefirst major real estate sales company to receive an award
for excellence in the category of equal opportunity
promotion at the Equal Opportunity and Work-Life
Balance Promotion Awards organized by Japan's Ministryof Health, Labour and Welfare in fiscal 2015.
TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 36

（億円）

4th3,000
Chapter（%）

Value Creation Strategy

18

Wellness Segment
2,500

17

2,000

16

1,500

15

1,000

14

500

Segment Overview (As of March 31, 2016)

0

2014

2015

2016

Senior residences

Membership resort hotels

13

24 hotels 2,659 rooms

15 facilities 1,080residences（歳）
No. ofpublic hotel rooms

実績値

95

75

No. of WELBOX members

20 65

Approximately 1,210,000

Golf courses

55

推計値

34 Members-only fitness clubs

女
男
22 85
hotels 3,164
rooms

Business Results Trends

Changes in the Market Environment

Operating revenue

Operating income(Billions of Yen)

(Billions of Yen)

100

Sales of country
houses andmemberships
Consignment welfare

Other

75
Tokyu Stay
Senior housing

20
15

6.7%

7.1%

6.0

6.4

50
Oasis

98.5

90.2

89.6

10

7.5

5

25
0

2014

2015

Operating revenue

Operating income

2016 Forecast

Continued aging of society

Contact with affluent customers(%)

Actual40

Members of Tokyu Harvest Club, golfcourse and Oasis, as well as country
house and villa owners

Estimate

30

0

(FY)

Operating income ratio(FY)

No. of facility users (on an annual
cumulative basis)

100

Varied asset portfolio and astrong brand presence

Approximately 160,000

20

7.7%

Resort operations

1950 1960 1970 1980 1990 2000 2010 2011 2020 2030 2040 2050 2060（年）8 Ski resorts

Segment Strengths

12Approximately 14,000,000
50
19

60
19

70
19

80
19

90
19

00
20

10
20

12
20

15
20

20
20

30
20

40
20

50
20

60 (year)
20

東急不動産が贈るシニアの住まい

The Aging of Society and Future Estimates (Proportion of the Population Aged Over 65)

Human resources with the ability to fully
utilize a broad range of know-how

Source: Fiscal 2015 Annual Report on the Aging Society (in Japanese only) issued by Japan's Cabinet Office

No. of employees (As of March 2016)

Inbound demand growth

東急不動産が贈るシニアの住まい

3,568

東急不動産が贈るシニアの住まい

Overview of Fiscal 2015 Results and Outlook for
Fiscal 2016

Business ModelIn fiscal 2015, the fiscal year ended March 31, 2016, revenue and profit increased

Customers

Individuals

Companies

Facility andservice fees

The provision offacilities, merchandise,and services

Purchase

Sale
Resort hotels

Senior housing

Healthcare
facilities

The scale of the wellness market, which includes the leisure-, senior-citizen-,its menu of services that address the residential needs of the elderly, pro-increase in revenue and earnings reflected a variety of factors including theand healthcare-related sectors, is estimated to exceed ¥8 trillion. In this seg-moting new development projects, and taking strategic steps to strengthenincrease in occupancy and room rates on the back of such factors as the upswing

ment, the Group works diligently to provide a broad spectrum of customers

its dominant presence in those areas in which it excels in order to takein inbound demand at Tokyu Stay medium- and long-term stay hotels as well aswith a rich and enjoyable lifestyle in an effort to establish a presence as aadvantage of any and all scale merits.

contributions from the start of operations at new Harvest Club, Fitness club, andcomprehensive wellness company.

Tokyu Stay facilities.

and to push forward a variety of initiatives including human resource educa-that are designed to capture growing inbound demand. In its Tokyu Staytion and training. The Group is especially focusing on building a robust business

Operating revenue is forecast to reach ¥98.5 billion, up 9.1% compared with theaccommodation-type hotel operations, which continues to attract robust

platform over the medium to long term, as a core strength of the segment.

previous fiscal year. Operating income is projected to total ¥7.5 billion, an increasedemand, the Group is building on its activities inner-city district, a traditional

Cutting across every division and department, the Group is strengtheningof 17.7% year on year. This forecast increase in revenue and earnings reflects amainstay area, and expanding activities into other principal regional cities. In

its marketing capabilities in order to nurture long-term relationships. In thiswide range of factors. In addition to the positive flow-on effects from improve-

response to steady growth in inbound demand, energies are being chan-manner, every effort is being made to enhance customer satisfaction and toments in Harvest Club, ski resort, and other existing facilities, the Group's results areneled toward the development of the Niseko and other condominium-type

develop a growing pool of loyal customers. Complementing these endeavors,

expected to benefit from contributions from operations at new Tokyu Stay hotels.

hotels while at the same time beefing up sales activities targeting travelers

the Group is actively developing new products and services.

Fitness clubs

visiting Japan.

From a human resource education and training perspective, the GroupThe Group is also upgrading and expanding its Tokyu Harvest Clubis focusing on securing personnel while lifting the skills of its staff. By bol-

have commenced. The Group is also advancing several projects including

membership resort hotel operations as well as its healthcare business activ-

stering Group-wide collaboration, steps are being taken to offset labor

Grancreer Setagaya Nakamachi as a part of its senior-citizen housing project activi-

ities. In addition to promoting new developments projects, every effort isshortfalls in the Group's management and operating activities. Throughties. In other business activities, steps are being taken to develop new Tokyu Stay

being made to expand the Group's customer base and network. Over andvarious measures including an award program as well as efforts aimed at

facilities in the Group’s hotel operations. Moving forward, the Group will promote

above its traditional Grancreer series of senior housing facilities, a longstand-sharing services that are in high demand, the Group is working to lift the

Seragaki Hotel operations (tentative name) in Okinawa Prefecture.

ing component of its healthcare business activities, the Group is bolsteringskills of its employees.

4 thValue Creation Strategy

Ski resorts

tion throughout the Group as a part of efforts to enhance customer satisfaction

ating the pace at which it puts forward and carries out strategic proposals

Turning to new development projects, the supply of new memberships at theGolf courses

Meanwhile, The Group is taking great pains to promote increased collabora-

Moving forward, the Group is placing considerable emphasis on acceler-

Holdings Group is expected to again experience an increase in revenue and profit.

Tokyu Harvest Club Karuizawa & VIALA, which is scheduled to open in fiscal 2018,
Consignment
welfareEstablishing a Presence as a Comprehensive Wellness Company in Each of the Leisure,
Senior-Citizen, and Healthcare Domains

0.7% to ¥90.2 billion and operating income climbed 7.1% to ¥6.4 billion. ThisFor fiscal 2016, the fiscal year ending March 31, 2017, the Tokyu Fudosan

Wellness Segment

Urban-type
Business hotels

compared with the previous fiscal year. In specific terms, operating revenue grew

Medium- and Long-Term Targets and Strategies

Tokyu Stay Hotel Newly Opened
Tokyu Stay Service Co., Ltd. opened Tokyu
Stay Ginza, an urban-type hotel, in the heartof the Ginza district , which attracts large
numbers of domestic and overseas
commercial and leisure-seeking visitors.
Tokyu Stay Ginza represents the 17th hotelin the company's network. Looking ahead,the company will expand its operations inorder to meet burgeoning demand.

Tokyu Harvest Club Karuizawa & VIALA (scheduled to open in fiscal 2018)

37 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Grancreer Setagaya Nakamachi
A mixed-use senior-citizen housing facility that provides nursing, medical, and lifestyleservices and condominium facility (scheduled to open in fiscal 2017)

The number of facilities in the Tokyo Metropolitan area has reached 17 following the
opening of Tokyu Stay Ginza.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 38

（億円）

4th
Chapter
3,000（%）

Value Creation Strategy

18

Tokyu Hands Segment
2,500

17

2,000

16

1,500

15

1,000

14

500

13

Segment Overview (As of March 31, 2016)

0

2014

2015

2016

Business Results Trends

Changes in the Market Environment

12

（年）

Operating revenue

Operating income(Billions of Yen )(Billions of Yen)
3.0

120

No. of stores（万人）
Domestic
1,500 retail

Tokyu Hands

6

1,000

30

14

60

1.5

1

40

1
0

0

500
Total

41

25

15

20
0

0.9
1.0%

2014
Operating revenue* Other: hands cafe , Picaro, WORK HANDS, HANDS EXPO
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Business Model

1.1

0.9

1.1%

2015

0.9%

0.5

0
2016 Forecast （FY）

Operating income

Sales revenue

Products andhints for a moreenjoyable lifestyleService

Products

Providing spaces that hints
that amaze and excite

Operating income ratio

Received the 30th Readers AwardPursuing new businesses
driven by our challenger's DNA

No. of Hands Club members

10

Approximately 5,600,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20152020 (year)

No. of overseas travelers visiting Japan
Source: Japan National Tourism Organization website(Billions of Yen )Medium- and Long-Term Targets and Strategies

Establishing a Reputable HANDS Brand that Continues to Evolve with the Times

A wealth ofmerchandise

increased compared with the previous fiscal year. In specific terms, operating

Through its Tokyu Hands business segment, the Tokyu Fudosan Holdings Groupslogan, the Group is working to seamlessly link “people." “service," and “products"

revenue climbed 8.9% to ¥95.7 billion and operating income increased 19.8%

is working diligently to evolve with the changing times and landscape and towhile helping to enhance customers' lifestyles as the source of its brand power.

to ¥1.1 billion on a year-on-year basis. Building on the opening of Tokyu

consistently earn the acclaim of customers.

As a result, the Group has positioned its human resources at the heart of efforts

HANDS Inc, LaLaport Fujimi Store and the Tokyu Hands Oita Store, the Tokyu

To this end, every effort is being made to maximize the strengths of theto provide a product lineup that is consistently in tune with the times and to

Fudosan is working to bolster its nationwide Tokyu Hands network. Marking

Tokyu Hands brand while expanding its business activities in a bid to create

create attractive shopping spaces that enhance the Group’s customer service

its initial foray into the Shikoku and Tohoku regions, Tokyu Hands opened the

new value.

capabilities.

Tokyu Hands Matsuyama Store and Tokyu Hands Sendai Store, respectively. In

In addition to maximizing the value of its existing business, energies are being

Taking each of the aforementioned into consideration, the Group is placing

addition, Tokyu Hands took steps to expand its business operations by bol-channeled toward enhancing the value of stores utilizing proprietary service con-significant weight on developing its personnel. The goal of this development isstering its network of Picaro specialty bag and miscellaneous merchandise

tent including hint shows. TOKYU HANDS INC. is also endeavoring to capture

to provide employees with a wealth of knowledge as well as the ability tostores. The company also launched the new HANDS EXPO business format

inbound demand by strengthening its customer service targeting overseas visitors.

engage in meticulous customer service. In undertaking the education and train-

within Tokyu Plaza Ginza. Taking into consideration each of these factors, theWith the continued development of its business model, the Group is plan-ing of its employees, the Group is placing particular emphasis on strengthening

strong performance at the annual Hands Messe sale, and other positive

ning to expand its operating area. In addition to standardizing its store open-

its practical education and training programs conducted through hint house.

trends including the upswing in inbound demand, the Group reported an

ing model, the Group is also moving to review its distribution procedures in an

In order to secure the necessary staff to push forward the Tokyu Hands

increase in revenue and earnings in the fiscal year under review.

effort to increase the efficiency of its operating systems. At the same time,brand, steps are also being taking to put in place a variety of workstyles that

expansion will be extended to regional core cities as well as such offshore loca-

cater to the needs of a wide range of employees.

Providing brand value

The Tokyu Fudosan Holdings Group

Tokyu Hands Sendai Store, the company's first store in the Tohoku region

tions as Singapore.

Meanwhile, the Group recognizes the importance of fostering strong ties ofenue is projected to reach ¥102.3 billion, up 6.9%, and operating income is

The Group is distinguished by its challenger's DNA. Building on its inherent

mutual trust with customers and society at large. With this in mind, the Group isforecast to fall 18.9% to ¥0.9 billion on a year-on-year basis. While operating

attributes, the Group will look to further diversify its contact points with cus-

helping children responsible for the next generation understand the joys associat-

revenue is projected to exceed ¥100.0 billion owing mainly to contributions

tomers by creating new value through such business formats as HANDS EXPO

ed with the art of making things through such initiatives as the hands Hint Club.

from the opening of new stores in major regional cities including Nagasaki

and promoting various measures that cover a wide range of areas including theBy participating in the NPO Shibuya University initiative, the HANDS GREEN

and Kanazawa, profit is forecast to decline due largely to the increase intransmission of information by adopting an omni-channel approach and devel-

BRANCH PROJECT, and other endeavors, the Group is working through its prod-

advertising and other expenses associated with the opening of new stores.

oping innovative applications. Under the banner of its “hint market" branducts and services to engage in social and environmental contribution activities.

Hint House

Hands Hint Club

Removed from the confines of the workplace, TOKYU HANDS INC.,
Inc. conducts group training to increase the knowledge andcustomer service skills of its employees. At the Hint House training
facility, employees are provided withdetailed information regarding thecompany's product lineup. Based on
first-hand experience, employees are
better placed to convey the featuresof each product, which in turn helps
to improve sales.
Employee training session

The Hands Hint mobile classroom, organized by Tokyu Hands, Inc., gives
children in nearby areas the opportunity to experience the joy of making
things for themselves in various handicrafts. Run by company employees,
Tokyu Hands, Inc. holds workshops forelementary school children in afterschool children's clubs and children's
activity centers. To date, workshops havebeen conducted on 252 locations
throughout Japan and attended by 9,091
children. These events shine a light onChildren participating in athe creativity of young children.
workshop

4 thValue Creation Strategy

expected to climb. Profit, on the hand, is anticipate to decline. Operating rev-

39 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Numerous points of contact
with customers and thecreative power of employees

200

Yomiuri advertising awards

conducted by Nikkei Research Inc.

(Announcement by the government
on March 30, 2016)

2020（年）

For fiscal 2016, the fiscal year ending March 31, 2017, revenue is again
Providing real estate

6th in a store strategy survey

In fiscal 2015, the fiscal year ended March 31, 2016, revenue and profit

Customers

PeopleHighly unique brand

The number of overseas travelers
visiting Japan is projected toreach 40 million by 2020

1.0

Overview of Fiscal 2015 Results and Outlook for
Fiscal 2016

The Tokyu Hands

Consulting
and sales

2.5
2.0

2

Individuals

102.3

95.7

87.9

80

Overseas stores

0100(Millions of Person)
40

stores(Announcement by the government
on March
30, 2016)
24

33

storesFranchised
storesThe number of overseas travelers
visiting Japan is projected to
Other specialty
reach
40 million
hands
be by 2020

Inbound demand expansion

Segment Strengths

hands be & cafe ETOMO Chuorinkan
Launching a new cafe format that is typical of the Tokyu Hands brand

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 40

4th Chapter

Value Creation Strategy

Innovation Segment

5th Chapter

Business Results Trends

Segment Overview (As of March 31, 2016)
Global Expansion of the Real Estate BusinessIndonesia, China, the U.S.

Attributes that Underpin
the Group’s Efforts to Create Value

Operating revenue

Operating income(Billions of Yen)

(Billions of Yen)
20

80
60

70.3

15

51.2

47.5

No. of units currently under construction as a part of

40

10

condominium complex development projects in Indonesia

205Approx. 4,000 units0* Includes certain joint business activities.

-0.6

-0.6

-3.0

-1.2%

Tokyu Fudosan Holdings works diligently to make the most of synergies throughout the Group while strengthening
corporate governance and engaging in CSR management as a part of efforts to create value through its business activities.

-0.9%

-5.9%

2014

2015

Operating revenue

Operating income

2016 Forecast

0
-5
(FY)

Operating income ratio

Segment Overview
The Tokyu Fudosan Holdings Group's innovation business is made up of its

Group, every effort is being made to generate future growth opportuni-

overseas and related company operations. In this segment, the Group isties. Furthermore, the Group is actively engaged in the sale of cus-channeling its energies toward creating new demand in line with the evo-

tom-built houses, renovation work, and landscaping as a part of strategic

lution of its business model. Leveraging the unique strengths of theendeavors related to its core activities.

FeatureOverseas Business Strategies
Putting in place a structure that is
capable of generating profit (2016)

condominium projects. Marking another milestone in its overseas operations, BRANZ Simatupang is the first project undertaken in Indonesia toemploy Japanese companies for every facet of project operations including development, design, and construction. Based primarily on the BRANZ

Establishing a platform that is centered mainly on
short-term earnings businesses (2020)

brand, the Group is promoting and expanding its condominium business.
In the United States, the world's largest market, the Group is putting inplace a structure that is capable of securing stable profit through the pur-

The Tokyu Fudosan Holdings Group is expanding its business activities inchase and sale of properties. In addition to pursuing investments in such

Asia and especially Indonesia, which is experiencing marked growth, as

cities as Los Angeles and Houston, the Group is participating in various

well as the United States as a part of its overseas endeavors.

redevelopment projects including 425 Park Avenue in Manhattan, New

Since entering Indonesia in 1975, the Group has established a strong
reputation and presence. The Group has to date developed a cumulative

York. Building on its sound track record, the Group is working to lift its ratio
of prime asset investment by harnessing its know-how.

total of roughly 4,500 detached housing residences. Currently, energies are

In China, the Group is engaged in the management of the Towakogu

being channeled toward the development and sale if high-end condo-

serviced apartments that are mainly for Japanese expatriate use. Making

miniums. Drawing on its know-how nurtured in Japan, the Group has

the most of real estate business experience and know-how in Japan, thecommenced sales of BRANZ BSD and BRANZ Simatupang, two large-scaleGroup is taking steps to push forward this business.

Corporate Governance

CSR Management

Corporate Governance		

P43

Approach and Structure regarding CSR Management

P53

Executive Board		

P47

Initiatives Aimed at Increasing Customer Satisfaction

P54

Risk Management		

P51

Initiatives Aimed at Creating a Pleasant Workplace Environment P55
Environmental Measures

425 Park Avenue, New York41 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

BRANZ BSD in suburban Jakarta

P56

BRANZ Simatupang in Jakarta

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 42

5th Chapter

Attributes that Underpin the Group’s Efforts to Create Value

Corporate Governance
The Tokyu Fudosan Holdings Group places the utmost emphasis on fulfilling its corporate social responsibility (CSR) while complying strictly to all
statutory and regulatory requirements as well socially accepted norms. Not only does the Group strive earnestly to enhance the transparency and

The Board of Directors

accountability of its management, but it also endeavors to strengthen corporate governance in a bid to ensure bold and timely decisions.

The Board of Directors functions as a supreme decision-making body

Corporate Governance
Basic Stance on Corporate GovernanceTaking into consideration people's needs and lifestyles, Tokyu Fudosan

operating environment. At the same time, the Company strives to

Holdings is a comprehensive lifestyle company that creates beautiful liv-

improve corporate value by placing “challenge" as the key word for its

ing environments together with its customers under the slogan ofmanagement strategy—constantly taking on the challenges of new“Toward a Beautiful Age." As a member of the Group, the Company isbusinesses and tackling new issues. As such, the Company sees improv-

committed to enhancing the value of the Tokyu brand, which has comeing management efficiency, as well as building a healthy and transpar-

to be associated with “comfort and reliability." It will continue to faithfully

ent management structure as important issues, and is putting its best

pursue a stable growth path and respond to the drastically changing

efforts into the area of corporate governance.

1. The Company will respect shareholders' rights and secure
effective equal treatment of shareholders.

Audit & Supervisory
Board Member

Audit &
Supervisory Board

Basic Policies

Accounting Auditor

various organizations within its structure to ensure thatGroup Executive
Committee

Group Internal
Audit Department

Risk Management
Committee

All Divisions

Each Group Company

4. The Company will clarify the roles and responsibilities ofPresident

its duty of accountability to its stakeholders.

Chairman

3. The Company will disclose information proactively and fulfill

Board of Directors

General Meetingof Shareholders

stakeholders.

CSR Promotion Committee

management oversight function of the Board of Directors andCompliance Council

the management monitoring and auditing functions of Audit &Supervisory Board Member and Audit & Supervisory Board
adequately.

Environment/Social
Contribution Council

5. The Company will engage in constructive dialogue withshareholders in order to contribute to its sustainable growthDiversity Council

and increase corporate value over the medium and long term.

important issues related to business operations The Board of Directors

to have the appropriate character and knowledge, as well as no health issues

develops internal rules such as the Board of Directors Regulations andthat would impede them from executing their duties. The nominatedthe Duty Authority Regulations in addition to the matters stipulated incandidates are also deemed to have insight and appropriate judgmentlaws and regulations and the Articles of Incorporation. Based on these,

capabilities with a view to achieving the management indicators and otherthe Board of Directors conducts decision-making on important mattersobjectives set out in the medium- and long-term management plan.

business plans, and large-scale investment plans. Authority for the exe-

Office ofCorporate Auditors

2. The Company will strive to cooperate appropriately with its

In appointing directors, the Company nominates personnel who are consideredrelated to the Group's management, such as the management policies,

Schematic Diagram of the Corporate Governance Systemincrease the objectivity and transparency of the selection and appointment

issues other than the important matters listed above is delegated to theprocess. Meetings of the advisory committee are scheduled to take place

Group Management Committee and other subordinate meeting bodies,from the second half of 2016 to advise on the selection of directors. Whenand officers and so forth in charge of business operations. Meanwhile,

deciding on candidates for the position of director, the Company strives tothe Board of Directors monitors the performance of duties of the meet-

maintain a balance between personnel, who are able to exercise theiring bodies as well as officers and so forth. In principle, the Board ofmanagement strengths in each of the fields within the Group’s wide-ranging

Directors meets once a month. Extraordinary meetings are held as andbusiness domain in the general lifestyle industry, and personnel, who arewhen deemed necessary. In order to clarify the management responsi-

suited for corporate management and so forth. In this manner, the Company

bility of directors and establish a system that is able to respond rapidly

seeks to secure a balance while maintaining diversity with respect to theto changes in the management environment, the term of office of direc-

overall knowledge, experience, and capabilities of the Board of Directors.

tors is set at one year.

The Audit & Supervisory Board
Tokyu Fudosan Holdings has adopted a statutory auditor system. Under

the status of business execution at the Company, its subsidiaries, andthis system, Audit & Supervisory Board Members attend important meet-

related companies. Audit & Supervisory Board Members form fair audit

ings including those of the Board of Directors to receive business reports

opinions by accurately grasping information based on on-site visits andfrom Directors and other officers. Audit & Supervisory Board Membersother activities, which are mainly conducted by Audit & Supervisory

peruse documentation on important decisions and listen to reports asBoard Members, and effectively audit directors in the performance ofwell as other presentations from the Internal Audit Department, subsid-

their duties as an independent body under the mandate of shareholders

iaries, other parties, and the accounting auditor as a part of their audit ofby utilizing the mobility and flexibility of the Audit & Supervisory system.

Outside Directors and External Audit & Supervisory Board Members
are to have rich experience in management and a high level of discernment

Transition to a Holding Company Structure

and character as well as other pertinent attributes together with an

Tokyu Land
Corporation

October 2013

while appropriately supervising executives from an independent position.
Tokyu Fudosan Holdings recognizes this as an important duty and has
currently appointed three independent outside directors.
To enable appropriate and flexible decision-making on business

0
October 2013
(At the time the Company
was established)

3
June 2016activities and the supervision of execution, the Company considers it
advantageous for the Board of Directors to be composed of directors
from inside the Company, who have specialist capabilities and insight
into business fields, management plans, personnel, finance andaccounting, and so forth, and independent outside directors, who areable to proactively offer opinions on growth strategies as well as theenhancement of governance, and raise concerns, from the perspectives

Putting in Place the Risk Management Committee(August 2015)

43 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

The establishment of a Nomination andCompensation Advisory Committee(Second half of 2016)of diverse stakeholders and society.

Criteria for Determining Independence
The Company deems outside directors to be independent when, in addition
to meeting the independence standards for independent officers stipulatedby the Tokyo Stock Exchange, none of the following have applied for any ofthe previous three fiscal years.
1) An executive of a business partner to which the Company's net sales accountfor 2% or more of the Company's consolidated net sales
2) An executive of a business partner whose net sales to the Company accountfor 2% or more of the business partner's net sales
3) An executive of a lender from which the Company borrows funds that accountfor 2% or more of the Company's consolidated total assets
4) An executive of a major shareholder or investor of the Company with aninvestment ratio of 10% or more
5) A consultant, accounting professional, or legal professional who receives
remuneration of more than ¥10 million a year from the Company besides
officer remuneration
6) A spouse or relative within two degrees of kinship of the Director, etc. of theCompany or a consolidated subsidiary

5 thAttributes that Underpin
the Group’s Efforts to Create Value

Tokyu Housing
Lease Corporation

Tokyu Hands, Inc.

Tokyu Livable, Inc.

Tokyu Community
Corporation

Tokyu
Livable, Inc.

they create. They are to provide advice from a broad, high-level perspective,

Tokyu Fudosan
Holdings Corporation

Tokyu Land
Corporation

Tokyu
Community
Corporation

understanding of the Group's wide-ranging business fields and the value

Increase in the Number of Outside Directors

Furthermore, the Company has set up a voluntary advisory committeewith an independent outside director serving as chairperson in a bid tocution of business and decisions relating to the execution of duties for

For the Company's corporate governance, independent outside directors

Corporate Governance Reforms Undertaken by the Tokyu Fudosan Holdings Group

Appointment of Directors

second to the General Meeting of Shareholders, and makes decisions on

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 44

5th Chapter

Attributes that Underpin the Group’s Efforts to Create Value

Corporate Governance
Messages from Outside Directors
Activities of Outside Directors and External Audit & Supervisory Board Members in fiscal 2015

Kouichi Iki Outside Director

Attendance
Title

Name

Director
Audit & Supervisory
Board Member
Audit & Supervisory
Board Member

The Board of
Directors

The Audit &Supervisory
Board

Major Activity Details

Conducting management from varied perspectives but with an eye to the future

Koichi Iki

12/12

ー

Attended all 12 meetings of the Board of Directors held during the fiscal year under review. Provided
his insight on matters subject to deliberation.

Compared with 2001, when I served as Audit & Supervisory Board Member for Tokyu Land Corporation, I have the feeling that the measures to enhance

Tomoyasu Asano

10/12

11/12

Attended 10 of the 12 Board of Directors' meetings held during the fiscal year under review.
Attended 11 of the 12 Audit & Supervisory Board meetings held during the fiscal year under review.

12/12

Attended all 12 meetings of the Board of Directors held during the fiscal year under review. Attended
all 12 meetings of the Audit & Supervisory Board held during the fiscal year under review.

Toshio Imamura

12/12

corporate governance, such as in the forming of a holding company, have resulted in discussions at Board of Directors’ meetings becoming quite lively. On
the other hand, when it comes to creating new value that breaks the real estate industry mold, I feel that there is a need for further reform.
There are the examples of the organization of directors and operational reforms. Rather than being centered on the operating officers of each groupcompany, companies are increasing the number of board members who have varied perspectives and demanding the implementation of PDCA cycles thatare based on a clear vision of the future for the entire group. Since on this occasion the long-awaited three people have been made outside directors, I
think that we will be able to deepen our close collaboration with the outside directors of other companies and enliven discussion. I would also like efforts to

Policy regarding the Determination of Remuneration and Details

be made in the diversity of our customer contact staff. While increasing the opportunities given to employees for interaction outside the Company, I am

Specifically, the system ensures a certain ratio for the portion of variable

Concerning the amount of remuneration for directors and Audit &Supervisory Board Members, at a General Meeting of Shareholders it was

remuneration within total remuneration, and the remuneration is decided

decided that the annual total amount of remuneration for directors shall notby resolution of the Board of Directors having set an amount inexceed ¥600 million, and that for Audit & Supervisory Board Members shallconsideration of the achievement level of key performance indicators (KPIs)

not exceed ¥120 million. Within those ranges, the individual remunerationsin the medium- and long-term management plan, the contribution tofor directors and Audit & Supervisory Board Members shall be decided,

achievement of the plan, and other factors. The level is decided in

respectively, at a meeting of the Board of Directors and through discussions

consideration of the balance with the level for other companies in the sameat the Audit & Supervisory Board. Moreover, the Company seeks to maintain

industry, employees, and so forth, in order to secure excellent humana remuneration system that will emphasize links with the performance

resources. Plans are in place to establish an advisory council. Compensation

targets in the medium- and long-term management plan to further increase

from fiscal 2017 will be determined after taking into consideration input

the motivation of officers to increase corporate value.

from this advisory council.

No. of person

Total amount of compensation

10

171

Directors

awareness of the problems that lie ahead and who are capable of coming up with new ideas.
In an era beset with many challenges, such as the coming of the aging society, I expect that the Tokyu Fudosan Holdings Group will continue to draw on
its strengths to create new value.

Noboru Tsuda Outside Director

Ensuring transparency and accountability based on clearly defined policies and standards
As an outside director, it is my responsibility to help ensure that the Tokyu Fudosan Holdings Group continues to enjoy sustainable growth while contributing

Total amount of compensation paid to directors and Audit & Supervisory Board Members in fiscal 2015
Category

expecting Tokyu Fudosan to utilize personnel from outside the Company and for there to be an increase in the number of young people who possess an(Millions of yen)

to efforts aimed at increasing the Group's overall value. My role, therefore, is to oversee the Group's activities as a whole, and to check that the Group isfunctioning properly while meeting the requirements of society. Ultimately, my goal is to support the Group's efforts to build a rich and healthy society.
Maintaining smooth lines of communication while at the same time ensuring accountability is vital to the effective and efficient operation of a holding
company structure. It is equally important to put in place a clear set of principles based on vigorous deliberation, and to clarify operating policies and(of which, outside director)

(1)

(3)

Audit & Supervisory Board Members

562

The Group's success in meeting the requirements of society rests on the ability of top management to lead by example and to adhere rigorously to a policyof strict compliance. With this as its platform, it is critical that senior executive and employees share a common awareness toward how the Group should(of which, EXternal Audit & Supervisory Board Members)

(3)

(11)

Total

15

233

(of which, outside officers)

(4)

(15)

standards, which in turn flow seamlessly through to acceptable assessment.

support society and how each business can play a role in resolving issues that confront the community. As an outside director, I would like to assist the Groupin bolstering both its economic and social output.

Takashi Enomoto Outside Director

Group Management Committee
The Group Executive Committee was set up as an entity to deliberate,business strategy proposals for subsidiaries. Comprising the chairman,

discuss and report on matters in two areas: important plans and proposals

president, the following directors as well as operating officers, the Grouprelating to Group management policy, management strategies and Group

Executive Committee convenes, in principle, once a month.

management; and important investment plans and proposals as well as

Utilizing views from outside the Company to boost growth
I feel that the Tokyu brand is extremely highly regarded by society and think that, as a company with a wealth of variety, Tokyu has potential. As an outside
director, I hope to be able to assist in raising the corporate value of the Tokyu Group.
In addition to taking part in company discussions from an external point of view, my primary role is to bring about improvements in management
stakeholders, including shareholders, have in the Company.

The Tokyu Fudosan Group has taken active steps to put in place andeffectiveness, and undertaking the appropriate disclosure of information; allimplement internal control systems for all members of the Group, includingof which will contribute to the sustainable development of the Group andthe Board of Directors and other organizations, management andthe consistent improvement of its corporate value. In addition, Audit &employees, with the aims of thoroughly implementing compliance-based

Supervisory Board Members are monitoring and validating the progress ofmanagement, ensuring proper business operations, achieving management

developments in its internal control system in accordance with the Audit

priorities such as earnings targets by raising the levels of efficiency andPractice Standards for Internal Control Systems.

45 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Another role is to once again draw on my knowledge of overseas business and IT utilization. I believe that utilizing my experience of overseas business willassist in bringing about overseas business growth from a long-term perspective. Drawing on my IT utilization experience will enhance the customer
relationships that are one of the Group’s strengths, and I believe in the need to develop comprehensive services in which the whole Group has a hand. It is mybelief that creating an organization capable of responding to society’s requirements, coupled with strengthening a business model that is not transient but
rather supports the Group’s customers throughout their lives, will lead to improvements in corporate value.

Attributes that Underpin
the Group’s Efforts to Create Valuetransparency and trustworthiness. I believe this needs the management decision-making process to be made transparent and raising the levels of trust

Internal Control

5 th

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 46

5th Chapter

Attributes that Underpin the Group’s Efforts to Create Value

Corporate Governance
Executive
Board

Back row from left

Toshihiko Kitagawa

Yoshihiro Nakajima

Hitoshi Uemura

Shinji Sakaki

Katsuhide Saiga

Hironori Nishikawa

Noboru Tsuda

Takashi Enomoto

Director andExecutive Advisor

Senior Managing Director

Director

Director
Executive Vice President

Director
Executive Vice President

Director
Executive Vice President

Senior Managing Director

Outside Director

Outside Director

Front row from left

47 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Hirofumi Nomoto

Kiyoshi Kanazashi

Yuji Okuma

Koichi Iki

Director

ChairmanPresident

Outside Director

5 thAttributes that Underpin
the Group’s Efforts to Create Value

Masatake Ueki

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 48

5th Chapter

Attributes that Underpin the Group’s Efforts to Create Value

Corporate GovernanceDirector System

Audit & Supervisory Board Member

Kiyoshi Kanazashi

Toshihiko Kitagawa

Koichi Iki

Chairman

Director

Outside Director

December 1982 Joins Tokyu Livable, Inc.
June 2003
Director, Tokyu Livable, Inc.
April 2014
Director Executive Vice President, Tokyu
Livable, Inc.
October 2014
President, Tokyu Housing Lease Corporation(current)
June 2015
Senior Managing Director,
Tokyu Fudosan Holdings Corporation (current)

April 1970
June 2001

April 1968
April 2008
October 2013
April 2015
April 2015
June 2015

Joins Tokyu Land Corporation
President, Tokyu Land Corporation
President, Tokyu Fudosan Holdings
Corporation
Chairman, Tokyu Fudosan Holdings
Corporation (current)
Chairman, Tokyu Hands. Inc. (current)
Chairman, Tokyu Land Corporation (current)

April 2007
June 2008
June 2009
June 2014
July 2014

Yuji Okuma
President
April 1982
April 2008
June 2011
October 2013
April 2014
April 2015

Director
Joins Tokyu Land Corporation
Operating Officer, Tokyu Land Corporation
Director, Operating Officer,
Tokyu Land Corporation
Director, Tokyu Fudosan Holdings Corporation
Senior Managing Director,
Tokyu Fudosan Holdings Corporation
President, Tokyu Fudosan Holdings
Corporation (current)

Shinji Sakaki
Director
April 1980
February 2007
April 2011
June 2014
April 2015
April 2015

Joins Tokyu Land Corporation
Managing Officer, Tokyu Hands, Inc.
President, Tokyu Hands, Inc.
Senior Managing Director, Tokyu Fudosan
Holdings Corporation
Director Executive Vice President,
Tokyu Fudosan Holdings Corporation (current)
President, Tokyu Livable. Inc. (current)

Hitoshi Uemura
Director
April 1982
June 2011
October 2013
April 2014
April 2015
June 2015

Joins Tokyu Land Corporation
Managing Director,
Tokyu Land Corporation
Director, Tokyu Fudosan Holdings Corporation
Director Executive Vice President,
Tokyu Land Corporation
President, Tokyu Land Corporation (current)
Director Executive Vice President, Tokyu
Fudosan Holdings Corporation (current)

Katsuhide Saiga
Director
April 1980
April 2006
April 2011

April 2016
June 2016

Joins Tokyu Land Corporation
Operating Officer, Tokyu Land Corporation
Operating Officer, Tokyu Community
Corporation
Senior Managing Director, Tokyu Community
Corporation
President, Tokyu Community Corporation(current)
Director Executive Vice President, Tokyu
Fudosan Holdings Corporation (current)

49 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

April 1982
April 2010
October 2013
April 2014
April 2015
June 2016

Joins Tokyu Land Corporation
Operating Officer, Tokyu Land Corporation
Operating Officer, Tokyu Fudosan Holdings
Corporation
Senior Managing Director, Tokyu Land
Corporation (current)
Operating Officer, Tokyu Fudosan Holdings
Corporation
Senior Managing Director,
Tokyu Fudosan Holdings Corporation (current)[Reasons for nomination]
The Company proposes that Mr. Koichi Iki be elected as
an Outside Director in the hope that he will continue toutilize his extensive operational experience as theformer executive officer at The Dai-ichi Mutual Life
Insurance Company (currently The Dai-ichi Life
Insurance Company, Limited) and broad discernment ofcorporate management in general for the managementof the Company.

Noboru Tsuda
Outside Director

Masatake Ueki

April 1973

Director and Executive Advisor

October 2005

April 1965
April 2004
April 2008
October 2013

April 2014

April 2014
April 2015

Joins Tokyu Land Corporation
President, Tokyu Land Corporation
Chairman, Tokyu Land Corporation
Chairman, Tokyu Fudosan Holdings
Corporation
Director and Executive Advisor, Tokyu Land
Corporation (current)
Director and Executive Advisor, Tokyu Fudosan
Holdings Corporation (current)

Yoshihiro Nakajima
Director
April 1971
June 2011
October 2013
April 2014
October 2014
April 2015

Joins Tokyu Land Corporation
President, Tokyu Livable. Inc.
Director, Tokyu Fudosan Holdings Corporation(current)
President, Tokyu Housing Lease Corporation
Chairman, Tokyu Housing Lease Corporation(current)
Chairman, Tokyu Livable. Inc. (current)

Hirofumi Nomoto
Director
April 1971
June 2007
April 2011
June 2011
October 2013

Joins Tokyu Corporation
Director, Tokyu Corporation
President, Tokyu Corporation (current)
Director, Tokyu Land Corporation
Director, Tokyu Fudosan Holdings Corporation(current)

June 2015
June 2016

Joins Mitsubishi Kasei Industries Corporation(currently Mitsubishi Chemical Corporation)
Operating Officer,
Mitsubishi Chemical Holdings Corporation
Director Executive Vice President,
Mitsubishi Chemical Holdings Corporation
Advisor, Mitsubishi Chemical Holdings
Corporation
Outside Director, NTN Corporation (current)
Outside Director, Tokyu Fudosan Holdings
Corporation (current)[Reasons for nomination]
The Company proposes that Mr. Noboru Tsuda beelected as an Outside Director in the hope that he will
utilize his extensive business experience as a former
executive officer at Mitsubishi Chemical Holdings
Corporation and broad knowledge of holding company
management for the management of the Company.

Takashi Enomoto
Outside Director
April 1975

June 2003
June 2008
June 2012
June 2013
June 2016

Joins Nippon Telegraph and Telephone
Public Corporation (currently NIPPONTELEGRAPH AND TELEPHONE CORPORATION)
Director, NTT DATA Corporation
Director Executive Vice President, NTT DATA
Corporation
Advisor, NTT DATA Corporation
Outside Director, Konica Minolta, Inc. (current)
Outside Director, Tokyu Fudosan Holdings
Corporation (current)[Reasons for nomination]
The Company proposes that Mr. Takashi Enomoto beelected as an Outside Director in the hope that he will
utilize his extensive business experience as a former
executive officer at NTT DATA Corporation and broad
knowledge of overseas business and IT utilization for the
management of the Company.

Ken Sumida
Audit & Supervisory
Board Member(Left)

April 1973
June 1999
June 2006
June 2010
June 2010
June 2013
July 2014
June 2015
June 2015

Toshio Imamura April 1974
External Audit &Supervisory Board
MemberJune 2007
June 2008
April 2011
April 2014
June 2014(Center right)

Joins Mitsui Trust Bank, Limited
Director, Mitsui Trust Bank, Limited
Senior Managing Director, Mitsui Trust Holdings, Inc.
Director, Chuo Mitsui Trust Holdings, Inc.
President, Chuo Mitsui Asset Trust and Banking Company, Limited
Audit & Supervisory Board Member, Mitsui Direct General Insurance
Company, Limited
Advisor, Sansen Trust Insurance Service Co., Ltd.
Audit & Supervisory Board Member, Tokyu Land Corporation(current)
Audit & Supervisory Board Member, Tokyu Fudosan Holdings
Corporation (current)

Joins Tokyu Corporation
Director, Tokyu Corporation
Managing Director, Tokyu Corporation
Senior Managing Director, Tokyu Corporation
Director Executive Vice President , Tokyu Corporation (current)
External Audit & Supervisory Board Member, Tokyu Fudosan
Holdings Corporation (current)

Tomoyasu Asano
External Audit &Supervisory Board
Member(Center left)April 1978
June 2009
April 2010
June 2011
October 2013
April 2014

Kazuto Nakajima
Audit & Supervisory
Board Member(Right)Joins The Dai-ichi Life Insurance Company
Managing Director,
The Dai-ichi Life Insurance Company
Managing Director,
The Dai-ichi Life Insurance Company, Limited
External Audit & Supervisory Board Member, Tokyu Land
Corporation (current)
External Audit & Supervisory Board Member, Tokyu Fudosan
Holdings Corporation (current)
Senior Managing Director,
The Dai-ichi Life Insurance Company, Limited (current)

April 1976
Joins Tokyu Land Corporation
September 2007 General Manager, Appraisement Department,
Asset Management Division, Tokyu Land Corporation
June 2011
Audit & Supervisory Board Member, Tokyu Community Corporation(current)
April 2014
Audit & Supervisory Board Member, Tokyu Land Corporation(current)
April 2014
Audit & Supervisory Board Member, Tokyu Livable. Inc. (current)
April 2014
Audit & Supervisory Board Member, Tokyu Hands, Inc. (current)
June 2014
Audit & Supervisory Board Member, Tokyu Fudosan Holdings
Corporation (current)
April 2015
Audit & Supervisory Board Member, Tokyu Housing Lease
Corporation (current)

Executive Officer System
President				Yuji Okuma

Operating Officer		

Kazuo Konno

Executive Vice President

Shinji Sakaki

Operating Officer		

Shigeyuki Furusawa

Executive Vice President

Hitoshi Uemura

Operating Officer		

Masashi Okada

Executive Vice President

Katsuhide Saiga

Operating Officer		

Shouhei Kimura

Senior Managing Director

Toshihiko Kitagawa

Operating Officer		

Kazuo Mochida

Senior Managing Director

Hironori Nishikawa

Operating Officer		Kensaku Kuno

Senior Managing Officer

Katsuhiro Yoshiura

Operating Officer		

Masaoki Kanematsu

5 thAttributes that Underpin
the Group’s Efforts to Create Value

April 2014

Hironori Nishikawa

Joins The Dai-ichi Life Insurance Company
Audit & Supervisory Board Member, Tokyu
Land Corporation
Director Executive Vice President, The Dai-ichi
Life Insurance Company
President, THE DAI-ICHI BUILDING CO., LTD.
Chairman, DIAM Co., Ltd.
Outside Director, Tokyu Fudosan Holdings
Corporation (current)
Representative Director,
TOHO KINZOKU CO., LTD.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 50

5th Chapter

Attributes that Underpin the Group’s Efforts to Create Value

Corporate GovernanceRisk Management
Basic Stance on Risk Management

Risk Management Process

Guided by its Basic Risk Management Policy, Tokyu Fudosan Holdings has

ue to run smoothly, Tokyu Fudosan Holdings evaluates, analyzes, and man-

Tokyu Fudosan Holdings takes steps to identify the wide variety of risks toand likelihood of occurring. Based on the results of evaluations and analy-

put in place and maintains a risk management structure and systems. The

ages all of these risks as they apply to each Group company.

which the Group is susceptible. At the same time, the Company under-ses, the Risk Management Committee has identified the following param-

takes an evaluation and analysis of risks in line with the degree of impact

eters with respect to the continuous management of important risks.

Company recognizes all internal and external factors that negatively

The Company has classified the aforementioned risks into three broad
categories: operating and management risks; business process risks, and;age to its brand or reputation, or interruption and suspension of activities

other major risks including crisis management. The Group manages eachas a going concern as potential risks. To ensure that its operations contin-

risk on an individual basis as follows.

Degree ofimpactLow

Monitor risk

Address risk

5. IT strategy risks
6. Information management andleakage risks
7. Crisis management risks

Risk Evaluation Method

Put in place a risk
mitigation plan

1. Investment risks
2. Financial and capital risks
3. Personnel and labor risks
4. Legal and compliance risks

Analyze andevaluate risk

<Individual Risks>

Identify risk

Basic Risk Management Policy
Tokyu Fudosan Holdings makes every effort to clearly identify all major risks
as they apply to the Group as a whole and takes systematic and continuous
steps to implement all necessary measures on a priority basis in order tocomprehensively manage all risks that have the potential to hinder theGroup from achieving its objectives or to create a loss.

Risk Management ProcessHigh

impact the Group's business operations resulting in a financial loss, dam-

Low

Likelihood of occurring

High

Risk Management System
In addition to the Group Management Committee and Board of

its risk management structure and systems as well as its risk manage-

Directors, Tokyu Fudosan Holdings has established a committee toment operations through internal audits. Audits of major risks are sys-

ensure the proper management of risks on a comprehensive Group-

tematically undertaken in accordance with their priority.

Important Risks• Incidence of an accident that negatively impacts the safety of customers, business partners, and employees

wide basis. A department has also been put in place to oversee individu-

In the event of a major loss or emergency that could cause serious

al risks within the Company. This department is responsible for ascertain-

damage to the Group, the Tokyu Fudosan Holdings Group takes appro-• Leakage or loss of confidential or personal informationing, evaluating, and analyzing the Group's risk management structure

priate steps in line with its Emergency Response Provisions. This includes• Prolonged working hours and unpaid overtimeand systems as well as the status of operations. Complementing thesethe distribution of information and decisive action as necessary to mini-

initiatives, Tokyu Fudosan Holdings takes steps to confirm the efficacy ofmize damage.

• Inadequate customer service and product quality• Breach of statutory or regulatory requirement (industrial, financial, commercial, and other legislation) andcompliance

Risk Management Structure• Inadequate crisis management structure and systems

Risk Management Committee[Roles]Directions with respect todeliberations relating to

1. Determines the structure under which risks are managed as well
as all policy initiatives governing risk management activities for
the Group as a wholeinvestment, finance,and capital risks

2. Oversees the distribution and sharing of information inconnection with measures aimed at preventing any recurrenceof a major incident*1 as well as any data relating to risks that
require management on a cross-sectional Group-wide basis

Deliberate on important matters as they relate to the
management and operations of the Group; overall control overdeliberations, reports, and the implementation of major
investment projects for each business company as well as
business and other strategies from a Group-wide perspective

Risks relating to business strategies, investment, finance andcapital, marketing, and the use of management resources(personnel, customers, information, etc.)• Improper behavior by business partners; inappropriate business partner selection• Deterioration or shortfall in awareness toward compliance by executive officers and employees

frequency, and other

Risks relating to compliance, business management (personnel,
labor management, quality assurance and safety, information
management, customer service, relationship management, etc.),
and crisis management• Inappropriate decision-making with respect to changes in the external environment

important matters relating
to activities aimed at• Changes in economic and business conditions

improving major
managed risks
Report on major projects from both the
management and business strategy perspectives(including incidents)

Each company, individual unit, etc.

● Implement management and business activities ● Implement major risk improvement activities (PDCA) ● Formulate incident
response and preventive measures*1 Incident: Incidents, accidents, or disaster that have occurred or are likely to occur*2 Each company, individual unit, etc.: Tokyu Fudosan Holdings Corporation, each unit of Tokyu Land Corporation (the Urban Development, Residential, and Wellness segments), other businesses (overseas businesses, Tokyu
Homes Corporation, Ishikatsu Exterior, Inc.), Tokyu Community Corporation, Tokyu Livable, Inc., Tokyu Hands, Inc., Tokyu Housing Lease Corporation• Delays in the application of Group management resources (personnel, customers, information, etc.); errors in
the use, education, and training of human resources• Sharp rise in personnel and raw material prices including the prices of lumber; changes in construction costs• Inadequate medium- and long-term IT strategies; errors in systems investment• Slump in overseas business development• Drop in the values of assets held (drop in operating rents)• Errors in identifying customers' needs

5 th
Attributes that Underpin
the Group’s Efforts to Create Value

Report on cross-sectional Group-wide risk information

have been identified in such important areas as investment, finance, and capital. Brief details are presented as follows.

• Deviations from or delays in new investment strategies

Reports on the overall status,[Risks Requiring Management]

51 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report• Improper or illegal behavior by executive officers or employees (including any financial incident)

Furthermore, certain risks that require ongoing deliberation and management by the Risk Management Committee[Risks Requiring Management]

4. Evaluates the efficacy of Group risk management systems aswell as improvement measures (arbitrary)[Roles]• Drop in workplace productivity as a result of harassment* Also includes responses to major incidents of a special naturefrom the management and operating perspective

3. Monitors the frameworks that oversee major risk mitigation
activities for each Group company and individual unit, etc.*2

5. Provides support in promoting increased awareness toward risks
as well as educational activities across the Group as a whole(arbitrary)Group Management Committee[Roles]TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 52

5th Chapter

Attributes that Underpin the Group’s Efforts to Create Value

CSR Management
PC

The changes surrounding us have sped up and now we face a variety of challenges. From environmental issues including climate change to humanrights and labor issues—there are truly a mountain of social issues facing modern society. We are deeply aware that such global social issues share adirect correlation to our business activities. With this in mind, we have put in place policies aimed at addressing each concern and are pushing forward Group-wide measures.
Taking the aforementioned into consideration, the Group is committed to solving many of society's problems while raising the level of its stake-

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

Initiatives Aimed at Increasing Customer Satisfaction
Approach
The Tokyu Fudosan Holdings Group works diligently to grasp changes

Group takes every opportunity to further increase its customers' satisfac-

holders' satisfaction by making the most of its resources and know-how. In addition to positioning CSR as an important management priority,

within its operating environment against the backdrop of an ever-evolv-

tion by providing products and services that deliver value tailored tosteps are being taken to share its CSR vision across the Group as a whole and to engage in business activities that help fulfill its responsibilities.

ing society as well as the needs of each era. Building on these efforts, theindividual needs.

Approach and Structure regarding CSR Management

TopicsCSR Vision

Group-wide Efforts for Customer Satisfaction

We will work on creating solutions for social issues through our business activities and in
the process enhance the satisfaction of stakeholders.

The Group has for some time engaged in a wide range of activities aimed

Building Homes that Take Customers Views into
Account

at improving the quality of its products and services. Each Group company

Tokyu Land Corporation's "BRANZ" condominium brand has been using

and department, for example, has conducted surveys to ascertain thethe "BRANZ VOICE" activity to canvas customers' views using surveys

level of customer satisfaction. In order to improve customer satisfaction,and interviews.

steps were taken to put in place a policy that governs the Group's CS

CSR Promotion Structure

The opinions expressed by customers are used to identify customer

activities in fiscal 2016. This policy clarifies the link between increasing cus-needs; BRANZ then leverages its know-how and integration capability to

The Group has established the CSR Promotion Committee headed byDiversity Council, as subcommittees of the CSR Promotion Committee,

tomer satisfaction and generating sustainable company growth as well astransform these into a physical form. Based around the concept of “func-

the President in order to implement initiatives aimed at addressing vari-that lead management activities across the entire Group in their respec-

steps and methods to ensure that its activities are effective. As a part oftional beauty that enhances your living experience,” BRANZ has devel-

tive areas of focus.

efforts to further standardize CS promotion endeavors across the Group,

oped the “MEUP” original product plan. To date, surveys conducted

Tokyu Fudosan Holdings also identified common CS-related indicators.

regarding the issue of water circulation—an issue that many customers

Guided by this policy, the Group is now well positioned to pursue custom-

had expressed opinions about—have resulted in the planning and com-

er satisfaction based on a common approach. Moving forward, we will

mercial launch of new products including kitchens, powder rooms andstrive to provide ever-better products and services that harness collabora-

bathrooms.

ous CSR issues. We have established three councils, namely theCompliance Council, Environment/Social Contribution Council, andCSR Promotion Organization Chart

Tokyu Fudosan Holdings GroupCSR Promotion Committee

tive efforts throughout the Group.
In this manner, the Group will focus on increasing customer satisfaction

Chairman: President of
Tokyu Fudosan Holdings Corporation

Compliance Council

Environment/Social
Contribution Council• Compliance management• Risk management• Environmental management• Social contribution activities

and generate mutual growth.

Diversity Council• Diverse working methods• Greater involvement of
women in the workplace
Urban
Development

Compliance Structure

Customer

Residential

The Group has put in place a compliance structure that includes the CSR

the mindsets of all executive officers and employees, the Group is

Promotion Committee. Moreover, the Group is committed to engaging

upgrading and expanding its structure and systems while promotingin thoroughgoing CSR management in line with the Group Code ofeducation and awareness activities.

Property
Management

Group interview

Inovation
Business

Real-Estate
AgentsTokyu Hands

Wellness

Conduct. Working to ensure that compliance is deeply entrenched in• Ensure best practice in material
procurement and fair trade.
• Ensure compliance with fiduciary
responsibility in the execution ofduties.
• Never connect with antisocial
forces.

Striving to be No. 1 in Customer Satisfaction
3. Suitable Execution of
Duties

4. Proper Management ofInformation

5. Ensuring Good Faith inBusiness Conduct• Identify customer needs anddevelop products to meet theirneeds.

• Responsible execution of duties,
keeping concepts of “speed" and“evolution" in mind.

• Operate appropriate document
and information management
systems.

• Preserve corporate assets.

• Prompt and dedicated response tocustomers' comments andrequests.

• Nurture organization culture of placingemphasis on “collective wisdom."• Proper management of confidential
information and compliance withconfidentiality obligation.

• Respect human rights.

• Prohibit insider trading.

• Reasonable business entertaining
and gift-giving.

• Customers' safety and security
comes first when providing
products and services.
• Provide a suitable and appropriate
explanation and marketing of our
products and services.

• Take advantage of combined
strength of the corporate group.
• Ensure proper decision making
process.

• Timely and appropriate information
disclosure and PR activities.

• Proper management of rules.

• Internal control to ensure properaccounting and financial reporting• Proper negotiations with businessassociates.

• Ensure a robust, safe, andcomfortable working environment.
• Contribution to society andconsideration of the environment.

• Clear distinction between businessand personal matters.

sharing know-how and information between Group member companies,
and in particular the five companies* that are most likely to have direct

Tokyu Community Corporation launched a customer center in fiscal 2016

contact with customers through the operation of facilities and other activ-

as a part of efforts to secure the number one position in customer satisfac-

ities. For example, one SWF activity is the implementation of thetion and reliability as a comprehensive real estate management company.

Hospitality Enhancement Program, a training program conducted by

The company is working diligently to raise the quality of its management

Tokyu Harvest Club, a membership resort hotel chain. Through theand to address its customers' needs in a more detailed manner. ThroughHospitality Enhancement Program, the Group strives to provide Tokyu

activities aimed at improving customer satisfaction, Tokyu Community is

Harvest Club employees with the necessary skills to instill a higher level ofalso taking steps to put in place a new management service model. The

guest satisfaction.

company will deepen its lines of communication with customers while
putting this model into practice and channel every ounce of its energy
into ascertaining its customers' expectations. In this manner, Tokyu
Community Corporation will look to provide services with the necessary* Tokyu Resort Service Co., Ltd., Tokyu Sports Oasis,
Inc., Tokyu Stay Service Co., Ltd., Tokyu E-LIFE
DESIGN, Inc., and TOKYU LAND SC MANAGEMENTCORPORATION

5 th
Attributes that Underpin
the Group’s Efforts to Create Value• Ensure compliance with applicablelaws and regulations.

2. Ensuring CustomerOriented Awareness

The Group continues to push forward the Service-Way Forum (SWF). The
goal of this initiative is to enhance the level of customer satisfaction by

The Tokyu Fudosan Holdings Group Code of Conduct
1. Compliance with Laws
and Regulations andFair Trading

Service-Way Forumvalue to meet these expectations.

53 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 54

Efforts for Employee SatisfactionPChttp://www.tokyu-fudosan-hd.co.jp/english/csr/employment/

Approach

Environmental MeasuresPC

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

Approach

Recognizing that its employees are the heart and soul of its operations,to improve customer satisfaction and corporate value. In order to

Based on its Environmental Vision, the Tokyu Fudosan Holdings Group is implementing measures to address five environmental issues (climate change,

the Tokyu Fudosan Holdings Group is dedicated to creating and main-achieve this goal, the Group has put in place policies that cover suchbiodiversity conservation, pollution and resources, water usage, and the supply chain) from three viewpoints.

taining energetic workplaces that allow each and every employee towide-ranging fields as health and safety as well as labor standards

perform to the best of their ability and work in a lively manner in order

including human and labor rights.

Environmental Vision (Basic Policy developed in 1998, revised in 2015)• Environmental Philosophy We will create value to connect cities and nature,and people with the future.

Topics• Environmental Policy		 We will make efforts to harmonize the environment
and the economy through business activities.

Launching the Diversity Council

Support Employees' Health

The Tokyu Fudosan Holdings Group launched the Diversity Council in fis-

The Group is actively engaged in health management as a part of efforts

cal 2015. Established under the umbrella of the CSR Promotion

to help employees maintain and improve their physical and mental condi-

Committee, which is headed by the President, the Diversity Council over-tion. Group company, Tokyu Land Corporation, has adopted the KENPOS

sees workstyles and the application of a diverse pool of human resources

health support site and program operated by Ewel, Inc. Through the use ofacross the Group as a whole.

designated applications that can be easily accessed via mobile phones,
Tokyu Land Corporation is helping employees gain valuable information

Holding Seminars for Executive Officers

on everyday activities that can help maintain and improve health.

The Group held a seminar for executive officers as a part of efforts to promote diversity in October 2015. The guest lecturer was Yoshie Komuro,President of Work Life Balance Co., Ltd. Ms. Komuro spoke about various
management methods and how to maximize the skills of a diverse rangeof employees while engaging in the lively exchange of opinions withexecutive officers.
The director and president of Tokyu Land Corporation also participatedin a discussion with Ms. Komuro in May 2016.

The Environment/Social Contribution Council
The Tokyu Fudosan Holdings Group established the CSR Promotion

The Futako Tamagawa Rise Acquires the Top AAA
Rank for JHEP Certification

Committee, headed by the President, to address environmental issues.

The Futako Tamagawa Rise integrated commercial and residential complex, a

The Group then set up the Environment/Social Contribution Council as a

joint venture between Tokyu Land Corporation and Tokyu Corporation,

subcommittee and is working to manage activities across the entire

acquired the top AAA rank JHEP certification from the Ecosystem

Group.

Conservation Society – Japan, an entity that undertakes the certification of

The Environment/Social Contribution Council is comprised of environ-workstyles was distributed to all manage-

mental managers from each Group company. Among its many activities,

garden into an open space containing water and“A" DBJ Employee's Health Management Rating

the Council sets targets for each fiscal year, manages results, and sharesgreenery as a large-scale area that comprises

from the Development Bank of Japan Inc., which

information based on a common policy.

such features as a vegetable garden and a killifish

East Japan Grand Prize and the East Japan Prize in the Work-Life Balance

ment personnel. Through these and other
Yoshie Komuro
President of Work Life
Balance Co., Ltd.

diverse range of workstyles.

Conducting Employee Satisfaction Surveys

category at the first White Company Awards in 2016.

pond. The goal is to create a community that is in

Measures Aimed at Developing and Strengthening
Human Resources
The Group recognizes the importance of its employees as critical “humanGroup company in February 2016. The results of these surveys identified a

assets.” Each Group company therefore conducts training as well as

number of workstyle issues particularly with respect to discrepancies

e-learning programs in lines with individual requirements as a part ofbetween companies. Drawing on the results of the surveys, discussions byefforts to improve the skills of each and every employee. Tokyu Landthe Diversity Council regarding future activities are underway.

Corporation systematically rotates its employees in an effort to ensure that
personnel obtain a broad understanding of the company's operations andfoster the necessary human resources to manage the company going for-As a part of efforts to put in place a pleasant workplace environment,
Tokyu Hands, Inc. established a working group to support the needs of all
as career consulting, the working group strives to educate the organization from a specialized standpoint while also conducting individual interviews. Moving forward, the Tokyu Fudosan Holdings Group is committed
to creating a workplace environment that continues to motivate employees irrespective of any change in conditions. The goal is to establish anenvironment that caters to various employee needs including the birth ofa child, nursing care, health care, relocation, and transfer.

The Group recognizes the importance of reducing CO2 emissions as wellas waste and water consumption. The Group has identified the following

ward. At the same time, Tokyu Land Corporation implements training programs to provide employees with the necessary skills at each stage of
their career.
In addition, self-development programs have also been actively introduced that allow each employee to select programs that would be usefulfor their own career development. These programs complement other initiatives that support employees in their bid to acquire qualifications.
Furthermore, programs such as English training are available for employees, who want to brush up their skills in these areas, in line with theGroup's focus on the expansion of its business overseas.

CO2 emissions and energy-derived emissions
2020

2030

212,475

–

–

133

99.23

100

93

(Base year)

-25%

-25%

-30％

FY

2005

2015

CO2 emissions

65,540(Unit: t-CO2)

CO2 emissions(intensity)

Achievement rate

(Target Value) (Target Value)

Waste volume
2020

The Futako Tamagawa Rise

Abeno Q's Mall
Certified as an Urban Oasis under the Social andEnvironmental Green Evaluation System in 2015
Abeno Q's Mall, a commercial facility owned and operated by Tokyu Land

FY

2005

2015

Waste emissions–

18,908–Environmental Green Evaluation System (SEGES) in 2015. Certification was in

13.23

10.06

100

recognition of efforts to blend restaurant facilities with the green spaces of the(Base year)

-24%

-25%

FY

2005

2015

Water use

–

1,901

–

1.12

0.90

0.84

(Base year)

-20%

-25%

(Unit: t)

Waste emissions(intensity : kg/m3)

Achievement rate

(Target Value)

Corporation, was certified as an urban oasis under the Social androoftop garden area and the refined use of trees and greenery to create apleasant and relaxing ambience.

Water use

(Unit: 1,000m3)

Water use
(intensity : m3/m2)

Achievement rate

55 TOKYU FUDOSAN HOLDINGS 2016 Integrated Reportment of the property's surroundings.

2020(Target Value)

5 th
Attributes that Underpin
the Group’s Efforts to Create Value

employees. Comprised of members qualified in such wide-ranging fields

harmony with the abundant natural environ-

Targets and Results

targets and openly discloses results. (See page 58 for performance trends.)

Tokyu Fudosan Holdings conducted workstyle awareness surveys at each

Putting in Place a Pleasant Workplace Environment

biodiversity assessments. Steps are being taken to develop the property's roof

Group Company, Ewel, Inc., received the highest

Group was recognized on two fronts receiving theThree viewpoints• Publicize a goal andimplement action.
• Endeavor to implement
progressive activities.
• Conduct community-based
activities in collaboration
with local people.

Topicsmanagement practices, in 2015. In addition, themainly on ways to reform and innovate

the president's commitment to promoting a

We will tackle five environmental issues from three
viewpoints.

awards ratings to companies with excellent health

Details of the discussion, which focused

initiatives, efforts are being made to clarify

Acquired the Highest “A” DBJ Employee’s HealthManagement Rating• Environmental Action		Five environmental issues• Climate Change• Biodiversity Conservation• Pollution and Resources• Water Use• Supply Chain

Abeno Q‘s MallTOKYU FUDOSAN HOLDINGS 2016 Integrated Report 56

Major Financial / Non-Financial Data
Financial Data

(Unit)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Operating revenue
Operating gross profit

Billions of yen

558.6

573.5

633.4

574.4

552.1

571.4

556.8

595.9

714.1

773.1

815.5

Billions of yen

132.1

136.4

159.9

114.3

106.5

131.7

123.3

126.8

145.3

148.8

163.8

Operating income

Billions of yen

64.9

65.9

82.1

35.0

35.5

62.5

50.1

52.0

61.4

63.3

68.8

Ordinary income
Net income*1

Billions of yen

56.8

60.4

75.4

27.7

28.2

54.9

34.9

39.9

50.6

51.7

56.4

Billions of yen

10.1

31.4

28.7

10.2

11.1

11.6

34.2

22.1

23.7

25.2

28.7

Total assets
Current assets

Billions of yen

885.7

954.1

1,013.9

1,035.7

1,055.4

1,161.4

1,744.8

1,718.4

1,789.8

1,973.8

1,984.4

Billions of yen

342.7

310.0

302.1

289.0

283.5

274.9

300.7

324.0

416.0

572.6

491.9

Billions of yen

119.9

51.7

33.5

30.3

46.6

44.0

64.2

84.1

92.7

93.9

39.9

185.2

202.4

200.0

172.2

155.7

172.7

175.3

245.9

394.7

364.4

1,444.1
275.3

1,394.4
307.0

1,373.8369.2

1,401.2
398.3

1,492.4
422.4

Cash and deposits

Billions of yen

165.0

Non-current assets

Billions of yen

Net assets
Shareholders' equity

Billions of yen

543.0
-

644.0
196.3

711.8
218.2

746.7
222.5

771.9
231.0

886.5
239.8

Billions of yen

145.5

173.7

192.8

195.7

203.1

208.6

240.8

268.7

364.5

395.3

418.8

Interest-bearing debt

Billions of yen

344.1

370.5

411.5

477.0

478.9

559.8

1,064.0

974.1

991.0

1,125.4

1,106.1

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

Billions of yen
Billions of yen

54.2
(2.0)

13.8
(106.4)24.9(79.9)

13.4(83.0)

72.5(26.7)

66.2(146.2)44.9(28.8)

70.2
42.5(13.5)
19.7(38.5)(100.3)87.9(112.4)

Billions of yen(29.5)

24.2

36.9

68.0

(30.9)

79.0(16.4)(90.5)

3.0

139.2(30.5)

Capital investment

Billions of yen

14.4

42.5

52.9

40.0

46.9

199.5

41.6

43.8

77.5

126.7

78.8

Depreciation and amortization

Billions of yen

11.7

11.3

12.3

13.3

13.2

14.9

20.8

20.2

20.0

20.2

21.0

Real estate for sale*2

EPS (Net income per share of common stock)

Yen

20.25

59.00

54.00

19.18

20.82

21.84

64.40

41.71

41.61

41.45

47.18

BPS (Net assets per share of common stock)
Cash dividends per shareYen

273.47326.74362.88368.39382.43392.87453.46505.99598.73649.40687.92

Yen

5.00

7.00

8.00

8.00

7.00

7.00

7.00

7.00

8.00

10.00

12.00

ROA
ROE

%

7.4

7.3

8.4

3.5

3.4

5.7

3.5

3.0

3.5

3.4

3.5

%

8.8

19.7

15.7

5.2

5.5

5.6

15.2

8.7

7.5

6.6

7.1

Equity ratio

%

16.4

18.2

19.0

18.9

19.2

18.0

13.8

15.6

20.4

20.0

21.1

Debt equity ratio
Dividend payout ratio
EBITDA*3
EBITDA ratio*

4

Times

2.4

2.1

2.1

2.4

2.4

2.7

4.4

3.6

2.7

2.8

2.6

%

24.7

11.9

14.8

41.7

33.6

32.1

10.9

16.8

19.2

24.1

25.4

Billions of yen

76.5

77.2

94.4

48.3

48.7

77.4

71.0

72.4

84.6

88.0

94.3

Times

4.5

4.8

4.4

9.9

9.8

7.2

15.0

13.5

11.7

12.8

11.7

*1 Net income has been reclassified as profit attributable to owners of parent from fiscal 2015.
*2 Real estate for sale: includes real estate for sale in process and costs of uncompleted construction contracts*3 EBITDA: Operating income before depreciation = Operating income + Depreciation and amortization + Amortization of goodwill*4 EBITDA ratio: Interest bearing debt ÷ EBITDA

Non-Financial Data

(Unit)

Number of employees

person17,594

18,243

19,230

%

4.81

5.70

5.91

Female directors
Female audit & supervisory board member
Female operating officer
Average years of service (male employees) *personpersonperson

0
0
2

0
0
2

0
0
2

year

13.23

13.21

13.01

Average years of service (female employees) *

year

8.79

8.96

8.71

Ratio of full-time employees (female employees) *

%

23.66

24.22

25.26

Ratio of new female employee hires to total hires *

%

31.47

33.00

35.37

Ratio of female managers *

2013

2014

2015

* Numerical data for companies that fall within the scope of disclosure based on the Law on Promoting Women in the Workforce (Ministry of Health, Labour and Welfare): Tokyu Land Corporation,
Tokyu Community Corporation, Tokyu Livable, Inc., Tokyu hands, Inc., and Tokyu Housing Lease Corporation

57 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Non-Financial Data

(Unit)

2013

Energy consumption
CO2 emissions

GJ

4,596,778 *1

4,659,689 *2

4,385,565 *3

t-CO²
kg-CO² /m³
m³
m³/m²
t
kg/m²

228,233
98.6
1,952,237 *1
0.85
14,189 *4
10.32

234,772101.9
2,049,037 *2
0.90
18,796 *5
10.23

212,475 *3
99.2
1,901,236 *3
0.90
18,908 *6
10.06

Basic unit
Water use
Basic unit
Waste emissions
Basic unit

2014

*1

2015

*2

*1 Number of target facilities 213 (Office buildings, Commercial facilities, Resort facilities, Other, Overseas)*2 Number of target facilities 226 (Office buildings, Commercial facilities, Resort facilities, Other, Overseas)*3 Number of target facilities 210 (Office buildings, Commercial facilities, Resort facilities, Other, Overseas)*4 Number of target facilities 124 (Office buildings, Commercial facilities, Resort facilities, Other, Overseas)*5 Number of target facilities 152 (Office buildings, Commercial facilities, Resort facilities, Other, Overseas)*6 Number of target facilities 161 (Office buildings, Commercial facilities, Resort facilities, Other, Overseas)

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 58

Consolidated Balance Sheet
Tokyu Fudosan Holdings Corporation

U.S. dollars (thousands)(Note 3)

Yen (millions)

Account title

As of March 31, 2015

As of March 31, 2016

As of March 31, 2016

AssetsCurrent assets   Cash and deposits (Note 8)   Notes and accounts receivable-trade¥   94,275¥   40,230$   359,196

25,462

24,217

216,223   Securities (Note 4)

1,735

1,272

11,357  Merchandise

10,254

11,620103,750   Real estate for sale (Note 8, 11)

246,761

199,285

1,779,330   Real estate for sale in process

142,087

159,337

1,422,652

5,823

5,751

51,348   Costs on uncompleted construction contracts  Supplies

723

823

7,348

   Deferred tax assets (Note 21)

7,011

9,818

87,661  Other

38,69239,752354,929

(191)

(165)

(1,473)572,635

491,942

4,392,339   Buildings and structures

370,560

398,216

3,555,500    Accumulated depreciation(153,178)(159,028)(1,419,893)

     Buildings and structures, net (Note 8)

217,381239,187

2,135,598    Land (Note 7, 8)

866,836

857,528

7,656,500   Construction in progress

26,05556,887507,920   Allowance for doubtful accounts   Total current assets
Non-current assets   Property, plant and equipment   Other

51,27758,961

526,438    Accumulated depreciation(34,305)(35,588)(317,750)    Other, net

16,972

23,373

208,688

1,127,244

1,176,976

10,508,714   Leasehold right

18,687

16,796

149,964   Goodwill

79,93075,873

677,438   Other

14,281

13,933

124,402    Total intangible assets

112,898

106,603

951,813    Investment securities (Note 5, 8)

80,202

110,757

988,902    Long-term loans receivable (Note 8)

1,288

2,211

19,741    Lease and guarantee deposits    Total property, plant and equipment (Note 11)  Intangible assets   Investments and other assets

62,20863,405566,116    Net defined benefit liability (Note 20)

377

642

5,732

    Deferred tax assets (Note 21)

7,919

6,489

57,938   Other

10,031

26,230234,196    Allowance for doubtful accounts(1,006)(877)(7,830)    Total investments and other assets

161,021208,858

1,864,804   Total non-current assets
Total assets

1,401,165

1,492,439

13,325,348¥1,973,801¥1,984,382$17,717,696

U.S. dollars (thousands)(Note 3)

Yen (millions)

Account title

Liabilities
Current liabilities   Notes and accounts payable-trade   Short-term loans payable (Note 8, 9, 10)  Commercial papers   Current portion of bonds  Accounts payable-other   Income taxes payable   Deferred tax liabilities (Note 21)  Advances received   Deposits received from consignment sales  Deposits received   Deposits received for special joint ventures   Provision for bonuses   Provision for directors’ bonuses   Provision for warranties for completed construction  Other provision  Other   Total current liabilities
Non-current liabilities   Bonds payable (Note 9)   Long-term loans payable (Note 8, 9)   Deferred tax liabilities (Note 21)   Deferred tax liabilities for land revaluation (Note 7, 21)   Long-term lease and guarantee deposited   Deposits received for special joint ventures   Net defined benefit liabilities (Note 20)   Provision for loss on guarantees   Provision for directors’ retirement benefits  Other provision   Other (Note 8)   Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity (Note 25)  Capital stock  Capital surplus  Retained earnings   Treasury shares   Total shareholders’ equity
Accumulated other comprehensive income   Valuation difference on available-for-sale securities (Note 21)   Deferred gains or losses on hedges (Note 21)   Revaluation reserve for land (Note 7, 21)   Foreign currency translation adjustment   Remeasurements of defined benefits (Note 20, 21)   Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

As of March 31, 2015

As of March 31, 2016

As of March 31, 2016¥   51,641
203,71773,00010,00026,846
10,382
1,728
26,26010,00920,953
11,500
8,280
193
421
713
15,268
470,918¥   37,281
215,450
58,00020,00027,5659,355
1,668
33,031
10,252
23,552
11,500
9,100
191
244
1,186
17,579475,960$   332,866
1,923,661
517,857
178,571
246,116
83,527
14,893294,920
91,536210,286
102,679
81,2501,705
2,179
10,589156,955
4,249,643

80,000758,661
30,164
7,289
176,248
11,50026,751
181
49
198
13,555
1,104,600¥1,575,518

80,000732,664
30,6304,981
174,058
9,000
28,473123
56–
26,052
1,086,039¥1,562,000

714,286
6,541,643
273,482
44,473
1,554,089
80,357254,2231,098
500–
232,6079,696,777$13,946,429

60,000118,638
195,774(1,785)
372,628

60,000118,638
219,855(1,789)396,704

535,714
1,059,268
1,962,991(15,973)
3,542,000

15,143
(73)
9,222
1,466
(3,052)
22,7052,948
398,282¥1,973,801

16,713–
7,741
990(3,364)22,0803,596
422,381¥1,984,382

149,223–
69,116
8,839(30,036)
197,143
32,107
3,771,259$17,717,696

See accompanying notes to the consolidated financial statements.

59 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 60

Consolidated Statement of (Comprehensive) Income (Consolidated Statement of Income)Consolidated Statement of (Comprehensive) Income (Consolidated Statement of Comprehensive Income)Tokyu Fudosan Holdings Corporation

Tokyu Fudosan Holdings Corporation

U.S. dollars (thousands)(Note 3)

Yen (millions)

Account title

Operating revenue
Operating cost (Note 12)
Operating gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Other
Total extraordinary income
Extraordinary losses
Impairment loss (Note 13)
Loss on building reconstruction
Loss on sales of investments in silent
partnership of subsidiaries and associates
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred (Note 21)
Total income taxes (Note 21)
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

2015(From April 1, 2014
to March 31, 2015)2016(From April 1, 2015
to March 31, 2016)2016(From April 1, 2015
to March 31, 2016)¥773,149
624,337
148,81285,511
63,300¥815,479
651,714
163,765
95,01468,750$7,281,063
5,818,875
1,462,188
848,339
613,839

144
329
44
587
1,106

121
749
145
232
1,249

1,080
6,688
1,295
2,071
11,152

9,962
706
2,062
12,731
51,675

9,609
1,396
2,614
13,62056,37985,795
12,46423,339121,607503,384

1,211
0
1,211

214
62
277

1,911
554
2,473

7,974
2,039

9,567
–

85,420
–

1,585

–

–

1,324
12,92439,963
17,651(3,519)14,132
25,830599¥ 25,230

314
9,882
46,77421,023(3,200)17,823
28,950231¥ 28,718

2,804
88,232
417,625
187,705(28,571)
159,134
258,4822,063$  256,411

U.S. dollars (thousands)(Note 3)

Yen (millions)

Account title

ProfitOther comprehensive income
Valuation difference on available-for-sale securities (Note 14)
Deferred gains or losses on hedges (Note 14)
Revaluation reserve for land (Note 14)
Foreign currency translation adjustment (Note 14)
Remeasurements of defined benefits (Note 14)
Share of other comprehensive income of entities accounted   for using equity method (Note 14)
Total other comprehensive income (Note 14)
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

2015(From April 1, 2014
to March 31, 2015)2016(From April 1, 2015
to March 31, 2016)2016(From April 1, 2015
to March 31, 2016)¥25,830¥28,950$258,482

7,803
(52)
717
2,356
19

1,569
73
277
(245)
(311)

14,009652
2,473(2,188)(2,777)745
11,59037,420(233)
1,130
30,081(2,080)10,089268,580

36,776¥   644

29,851¥   230

266,527$  2,054

See accompanying notes to the consolidated financial statements.

See accompanying notes to the consolidated financial statements.

61 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 62

Consolidated Statement of Changes in Equity
Tokyu Fudosan Holdings Corporation

2016 (from April 1, 2015 to March 31, 2016)2015 (from April 1, 2014 to March 31, 2015)

Account title

Balance at beginning of current period
Cumulative effect of change in   accounting policies
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve for land
Change of scope of consolidation
Net changes of items other than   shareholders’ equity
Total changes of items during period
Balance at end of current period

Yen (millions)

Yen (millions)Shareholders’ equity

Shareholders’ equity

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity60,000118,639

173,275(1,781)

350,134

60,000118,639(145)
173,130(1,781)(145)
349,989(5,783)25,230
(6)
2

(0)
3,196

–
60,000(0)118,638

22,644
195,774(4)(1,785)(5,783)25,230
(6)
1
3,196
–
–
22,638372,628

Account title

Balance at beginning of current period
Cumulative effect of change in   accounting policy
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve for land
Change of scope of consolidation
Net changes of items other than   shareholders’ equity
Total changes of items during period
Balance at end of current period

Account title

Balance at beginning of current period
Cumulative effect of change in   accounting policies
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve for land
Change of scope of consolidation
Net changes of items other than   shareholders’ equity
Total changes of items during period
Balance at end of current period

63 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Deferred
gains orlosses onhedges

7,340

7,340

Revaluation
reservefor landRemeasurementsof defined
benefits(21)

11,701(1,590)(21)

11,701(1,590)

(52)
(52)
(73)

(2,479)(2,479)
9,222

3,057
3,057
1,466

Retainedearnings

TreasurysharesTotalshareholders’equity60,000118,638

195,774(1,785)

372,628

60,000118,638

195,774(1,785)–
372,628

(4)
0

(0)
1,757
(4)

–
60,000(0)118,638(6,392)
28,718
(4)
0
1,757
(4)

(3)
(1,789)–24,076
396,704

Total accumulated
other
Noncomprehensive controllingincomeinterests

Total
net assets

24,080219,855

Accumulated other comprehensive income

Foreigncurrencytranslation
adjustment

Total accumulated
other
Noncomprehensive controllingincomeinterests

Total
net assets(3,072)

14,357

4,751

369,242(3,072)

14,357

4,751

(145)
369,097(5,783)25,230
(6)
1
3,196
–

7,803
7,803
15,143

Capitalsurplus(6,392)
28,718

Accumulated other comprehensive income

Valuationdifference on
available-for-salesecurities

Capital
stock

19
19
(3,052)

8,348
8,348
22,705(1,802)(1,802)
2,948

6,545
29,184398,282

Account title

Balance at beginning of current period
Cumulative effect of change in   accounting policy
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve for land
Change of scope of consolidation
Net changes of items other than   shareholders’ equity
Total changes of items during period
Balance at end of current period

Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reservefor landForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefits

15,143

(73)

9,222

1,466

(3,052)

22,7052,948

398,282

15,143

(73)

9,222

1,466

(3,052)

22,7052,948–
398,282(6,392)
28,718
(4)
0
1,757
(4)

1,569
1,569
16,71373
73–(1,480)(1,480)
7,741

(476)
(476)
990

(311)
(311)
(3,364)

(625)
(625)
22,080

648
648
3,596

23
24,099422,381

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 64

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Tokyu Fudosan Holdings Corporation

Tokyu Fudosan Holdings Corporation

2016 (from April 1, 2015 to March 31, 2016)
Shareholders’ equity

Account title

Balance at beginning of current period
Cumulative effect of change in   accounting policy
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve for land
Change of scope of consolidation
Net changes of items other than   shareholders’ equity
Total changes of items during period
Balance at end of current period

TreasurysharesTotalshareholders’equityCapitalstock

CapitalsurplusRetainedearnings

535,714

1,059,268

1,747,982(15,938) 3,327,036

535,714

1,059,268

1,747,982–(15,938) 3,327,036(57,071)
256,411

15,688(36)(57,071)
256,411(36)
0
15,688(36)

215,000
1,962,991–(27) 214,964(15,973) 3,542,000

(36)
0

(0)

–
535,714(0)
1,059,268.

Accumulated other comprehensive income

Account title

Balance at beginning of current period
Cumulative effects of changes in   accounting policies
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve for land
Change of scope of consolidation
Net changes of items other than   shareholders’ equity
Total changes of items during period
Balance at end of current period

65 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reservefor landForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefits

135,205(652)

82,33913,089(27,250)

202,723

26,321

3,556,089

135,205(652)

82,33913,089(27,250)

202,723

26,321–
3,556,089

Total accumulated
Nonothercomprehensive controllinginterests
incomeTotal
net assets(57,071)
256,411(36)
0
15,688(36)
14,00914,009149,223652
652–(13,214)(13,214)
69,116(4,250)(4,250)8,839(2,777)(2,777)(30,036)(5,580)(5,580)
197,143

U.S. dollars (thousands)(Note 3)

Yen (millions)

U.S. dollars (thousands) (Note 3)

5,786
5,786
32,107

205
215,170
3,771,259

Account title

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Share of (profit) loss of entities accounted for using   equity method
Increase (decrease) in net defined benefit liability
Increase (decrease) in other provision
Impairment loss
Loss on valuation of inventories
Loss on retirement of non-current assets
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in deposits received for consignment sales
Increase (decrease) in deposits received for special   joint ventures
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments of loans receivableCollection of loans receivable
Purchase of short-term and long-term investment securities
Proceeds from sales and redemption of short-term and   long-term investment securities
Purchase of shares of subsidiaries resulting in change in   scope of consolidation
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Purchase of non-current assets
Proceeds from sales of non-current assets
Other, net
Net cash provided by (used in) investing activities

2015(From April 1, 2014
to March 31, 2015)2016(From April 1, 2015
to March 31, 2016)2016(From April 1, 2015
to March 31, 2016)¥  39,963
20,1884,514¥  46,774
21,0084,548$  417,625
187,571
40,607

185
1,426
(458)
7,974
1,892
750
(473)
9,962
(306)
(108,461)(10,549)
(872)

792
1,695
836
9,567
3,635
1,121
(657)
9,609
1,231
19,428(14,325)
243

7,071
15,134
7,464
85,42032,455
10,009(5,866)85,795
10,991
173,464(127,902)
2,170

17,700
5,090(11,473)613(9,972)(17,655)¥ (38,488)(2,500)15,610118,621825(9,787)(21,736)¥  87,922(22,321)
139,375
1,059,116
7,366(87,384)(194,071)$  785,018

(636)
1,125
(14,768)(2,444)48(35,115)(21,821)429(313,527)

2,887

4,700

41,964(1,768)(9,741)
4,622(99,422)
17,440(3)¥(100,263)–(6,278)6,468(85,045)
6,432(1,138)¥(112,372)–(56,054)
57,750(759,330)
57,429(10,161)$(1,003,321)

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 66

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Tokyu Fudosan Holdings Corporation

TOKYU FUDOSAN HOLDINGS CORPORATION AND CONSOLIDATED SUBSIDIARIES

U.S. dollars (thousands)(Note 3)

Yen (millions)

Account title

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Net increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from long-term lease and guarantee deposited
Repayments of long-term lease and guarantee deposited
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Proceeds from share issuance to non-controlling shareholders
Repayments to non-controlling shareholders
Dividends paid to non-controlling interests
Repayments of finance lease obligations
Net decrease (increase) in treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at end of period (Note 15)
See accompanying notes to the consolidated financial statements.

2015(From April 1, 2014
to March 31, 2015)2016(From April 1, 2015
to March 31, 2016)2016(From April 1, 2015
to March 31, 2016)¥ (36,248)
73,000210,672(127,926)
28,333(18,971)
20,000(200)(5,783)257(2,533)(186)(1,222)(5)¥ 139,186
747¥   1,182
92,723¥  18,280(15,000)
287,387(323,705)
25,970(25,871)
20,000(10,000)(6,392)669–(234)(1,617)(3)¥ (30,518)883¥ (54,084)
93,949$  163,214(133,929)
2,565,955(2,890,223)
231,875(230,991)
178,571(89,286)(57,071)
5,973–(2,089)(14,438)(27)$  (272,482)
7,884$  (482,893)
838,83043¥  93,949

0¥  39,8640$  355,929

1. Summary of Significant Accounting Policies(a) B asis of Presenting Consolidated
Financial Statements

MAINTENANCE because of its absorption in an absorption-type

The accompanying consolidated financial statements of the

TLC Resort Management Co., Ltd. because of its liquidation; and Silent­Company and its consolidated subsidiaries are prepared on the basis

Partnership ARCADIA 2, Silent Partnership OB-1, Silent Partnershipof accounting principles generally accepted in Japan, which are

KTMO and Silent Partnership GOODFIELD INVESTMENT because ofdifferent in certain respects as to the application and disclosure

their loss of importance due to the sales of their properties.

merger, with TOKYU BLDG. MAINTENANCE as the surviving company;

requirements of International Financial Reporting Standards, and arecompiled from the consolidated financial statements prepared by(c) Securities

the Company as required by the Financial Instruments and Exchange

The Company classifies its securities into the following three catego-

Law of Japan.

ries; trading, held-to-maturity, or other securities. Based on thisThe notes to the consolidated financial statements include information which is not required under accounting principles generally
accepted in Japan but is presented herein as additional information.
As permitted by the Financial Instruments and Exchange Law ofclassification, all of the Company’s securities were classified as either
held-to-maturity or other securities.
Held-to-maturity securities are carried at amortized cost.
Other securities with determinable market values are carried

Japan, amounts of less than one million yen have been roundedprincipally at market value. The difference between the acquisition

down. As a result, the totals shown in the accompanying consoli-

cost and the carrying value of these securities, consisting of unreal-

dated financial statements (both in yen and U.S. dollars) do notized gains and losses, is recognized net of the applicable income

necessarily agree with the sums of the individual amounts.

taxes in “Valuation difference on available-for-sale securities” in “Netassets.” Other securities without determinable market values are(b) Consolidation Policy

carried principally at cost. The cost of other securities sold is princi-

The accompanying consolidated financial statements include thepally determined by the moving average-method.

accounts of the Company and significant subsidiaries controlled

For investments in silent partnerships and preferred equity securi-

directly or indirectly by the Company. Significant affiliates overties of special purpose companies, the ownership interest equivalent

which the Company exercises significant influence in terms of theirprofits and losses attributable to the Group are recorded as operating

operating and financial policies have been included in the consoli-

revenue or operating cost, and the corresponding amounts aredated financial statements by applying the equity method. All

added or deducted to the securities or investment securities account.

significant intercompany balances and transactions have been
eliminated in consolidation.

(d) Inventories

Investments in subsidiaries and affiliates which are not consoli-

Inventories are stated at the lower of cost or market. Real estate for

dated nor accounted for by the equity method are carried at cost or

sale, real estate for sale in process and costs on uncompleted con-less. Where there has been a permanent decline in the value of such

struction contracts are determined by the gross average method orinvestments, the Company has written down the investments.

individual method, merchandise by the retail method and supplies

There were 109 consolidated subsidiaries as of March 31, 2016. During

by the moving average method.

the year ended March 31, 2016, the following companies have become
consolidated subsidiaries, for the following reasons, respectively:
Silent Partnership ORION, Silent Partnership BRICK, Silent­Partnership CASSIOPEIA, Silent Partnership COMFORIA VIRGO and

Property, plant and equipment are stated at cost except for land

Silent Partnership GEMINI because of new investments made; Tokyu

revalued pursuant to the Law Concerning Land Revaluation. Prop-

Corporate Housing Management Inc. because of the new establish-

erty, plant and equipment are principally depreciated by the declin-

ment thereof; and Life & Work Design Co., Ltd. because of an increase

ing-balance method over their estimated useful lives.

in its importance.
On the other hand, the following companies were excluded fromthe scope of consolidation due to the following reasons, respectively:
Livable PA Co., Ltd. and Tokyu Relocation Service Co., Ltd. becauseof their absorption in an absorption-type merger, with Tokyu Housing
Lease Corporation as the surviving company; Kansai TOKYU BLDG.

67 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report(e) P roperty, Plant and Equipment (except forleased assets)

Depreciation for buildings acquired after April 1, 1998 is computed by the straight-line method.
Estimated useful lives are as follows:
Buildings and structures

3 to 65 years

Repairs and maintenance that do not improve or extend the life of
the respective assets are charged to expense as incurred.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 68

(f ) Intangible Assets (except for leased assets)

the balance sheet date, and the translation gain or loss is included in

Intangible assets are amortized by the straight-line method. Software (forother non-operating income or expenses.

2. Change in Accounting Policy

The assets and liability accounts and the revenue and expense

Effective from April 1, 2015, the Company has applied the Accounting

accounts of the consolidated foreign subsidiaries are translated into

standard for Business Combinations (Accounting Standards Board of

The accounting standards for business combinations have been(g) Leases

yen at the year end rates and the average rates in effect during theJapan “ASBJ” Statement No. 21, issued on September 13, 2013), theapplied prospectively from April 1, 2015, in accordance with the transi-

Finance leases are principally recognized as assets. Leased property is

period, respectively. Differences resulting from the translation are

Accounting Standard for Consolidated Financial Statements (ASBJ

tional treatment provided in Paragraph 58–2 (4) of the ­Accounting

depreciated over the lease term by the straight-line method with nopresented as “Foreign currency translation adjustment” and “Non-

Statement No. 22, issued on September 13, 2013), and theStandard for Business Combinations, Paragraph 44–5 (4) of theresidual value.

controlling interests” in the “Net assets” section.

­Accounting Standard for Business Divestitures (ASBJ Statement No. 7,

Accounting Standard for Consolidated Financial Statements, and Para-internal use) are amortized over their estimated useful lives of 5 years.

cial statements of the previous fiscal year have been restated.

issued on September 13, 2013). In line with the application of thesegraph 57–4 (4) of the Accounting Standard for Business Divestitures.

other than those in which the ownership of the leased assets is to be(n) Derivative Financial Instruments

standards, the Company included the difference resulting from the

As a result, there is no impact to the consolidated financial state-transferred to the lessees at the end of the lease term, are accounted

The Company and certain consolidated subsidiaries utilize derivativechanges in a parent’s ownership interest in a subsidiary, in which thefor using the same method as that of operating leases.

financial instruments for the purpose of hedging their exposure toparent retains control, as capital surplus, and included the costs

Finance leases, which commenced on or before March 31, 2008,

adverse fluctuations and changes in interest rates (interest rate

related to the acquisition of additional ownership interests in the(h) Allowance for Doubtful Accounts

swaps), but do not enter into such transactions for speculative or

operating costs of the fiscal period in which the relevant costs were

The Company and its consolidated subsidiaries provide for an allow-

trading purposes.

incurred. In regard to the business combinations executed after April

Derivative financial instruments are carried at fair value with any

1, 2015, the Company has revised the timing of adjustments of thecollection. The allowance consists of a general reserve calculatedchanges recognized in income or expense, except for those which

tentative accounting treatments to reflect this to the financial state-based on the historical write-off rate, and a specific reserve calculated

meet the criteria for deferral hedge accounting under which the gain or

ments for the fiscal year in which the relevant business combinations

based on the estimate of uncollectible amounts with respect to eachloss is deferred and presented in “Deferred gains or losses on hedging”.

were executed. The Company has also changed the method of dis-

When the Company enters into interest rate swap agreements toclosing profit, etc., and the method of disclosing minority interests tohedge the interest rate risks and the agreements meet certain criteria,

non-controlling interests. In order to reflect these changes, the finan-

ance for doubtful accounts to cover the estimated probable losses on

identified doubtful account.

(i) Provision for Bonuses

the interest rate swap agreements are eligible for a special treatment.

The estimated amount of bonus payments relevant to the consolidated

Under the special treatment, the hedged debt is accounted for as if it

fiscal year is provided to cover the payment of bonuses to employees.

had the interest of the debt and the interest rate swap combined, notments for the fiscal year ended March 31, 2016.

3. Basis of Financial Statements Translation

the original interest rate of the debt by itself.

(j) Provision for Warranties for Completed Construction
A warranty reserve for completed construction contracts is provided(o) Amortization of Goodwill

at an estimated amount, based on the historical level of warranty

Goodwill is amortized by the straight-line method over the estimatedcosts incurred on completed construction contracts.

period (from one year to twenty years) of its effect.

(k) Retirement benefit liability(p) Cash and Cash Equivalents

Liability for retirement and severance benefits for employees is

For purposes of the consolidated statement of cash flows, cash equiv-

recorded based on the retirement benefit obligation and the fairalents are defined as low-risk, highly liquid, short-term investments

value of the pension plan assets as of the balance sheet date.

(maturing within three months from the acquisition date) which are

Actuarial gain and loss are amortized from the year following thereadily convertible to cash.

The accompanying consolidated financial statements presented

Tokyo Foreign Exchange Market on March 31, 2016. This translation

herein are expressed in Japanese yen, and solely for the convenienceshould not be construed as a representation that all the amountsof readers, have been translated into United States dollars at the rate

shown could be converted into U.S. dollars at that rate.

of 112=U.S. $1, the approximate exchange rate prevailing on the

4. Investments in Silent Partnerships and Operational Investment Securities
Investments in silent partnerships holding properties for sale and operational investment securities included in securities at March 31, 2015 and2016 are summarized as follows:over the period of principally from 3 to 10 years, which is shorter than(q) Income Taxes

the average remaining years of service of the employees.

Deferred tax assets and liabilities are determined based on differences

Prior service cost is amortized by the straight-line method over the

2016

2015

Securities¥1,272¥1,585

2016$11,357

between the carrying amounts and the tax bases of the assets andperiod of principally from 5 to 12 years, which is shorter than theliabilities, using the enacted tax rates in effect for the year in which those

average remaining years of service of the employees.

temporary differences are expected to be reversed. Deferred tax assets
are also recognized for the estimated future tax effects attributable to tax(l) Recognition of Revenue

operating loss carry forwards. Valuation allowances are provided in order

Revenue from the sale of real estate is recognized when they are

to reduce the deferred tax assets in case some or all are not realized.

5. Investments in Unconsolidated Subsidiaries and Affiliates
Investments in and loans to unconsolidated subsidiaries and affiliates at March 31, 2015 and 2016 consisted of the following:(r) Reclassification(m) Foreign Currency Translation

Certain reclassifications have been made to the previous year’s con-

All receivables and payables denominated in foreign currencies at thesolidated financial statements to conform to the presentation usedbalance sheet date are translated at the exchange rates in effect as offor the year ended March 31, 2016.

U.S. dollars(thousands)

Yen (millions)2015

delivered and accepted by the customers.

69 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

U.S. dollars(thousands)

Yen (millions)year in which the gain or loss is incurred by the straight-line method

Investment securities¥12,964

2016¥40,1412016$358,402

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 70

(2) Secured liabilities

6. Contingent Liabilities
At March 31, 2015 and 2016 the Company and consolidated subsidiaries have the following contingent liabilities:
U.S. dollars(thousands)

Yen (millions)
2016

2015

Guarantee of loans on behalf of:Individual customers for principally housing loans
Employees for their purchase of residential houses
PT. TTL Residences
425 Park Owner LLC
Tokyu Land US Corporation*1¥ 8,77644
273––¥10,134

U.S. dollars(thousands)

Yen (millions)¥ 6,87824
216
10,45728,091¥45,667

2015

2016

2016

¥ 83,228
342,341–¥425,569¥ 39,664
354,072
2,261¥395,997$  354,143
3,161,357
20,188$3,535,688

2016

Short-term loans payable
Long-term loans payable
Other noncurrent liabilities$ 61,411
214
1,929
93,366
250,813$407,741

In addition to the above, cash of ¥907 million at March 31 2015, andfinance transaction according to the Practical Guidelines on

Investment securities of ¥1,218 million and ¥983 million (U.S. $8,777

Accounting by Transferors for Derecognition of Real Estate

thousand) at March 31 2015 and 2016 were pledged as collateral for­Securitized by means of Special Purpose Companies (the Accounting

guarantee of the real estate trading business.

System Committee Statement No. 15 of the Japanese Institute of*1 Represents the guarantee for borrowings that were made by Tokyu Land US Corporation a consolidated subsidiary, whose closing date is different from the consolidated closing date, which took
place between those dates.

7. Revaluation of Land

Tokyu Land Corporation, a subsidiary of the Company, transferred

Certified Public Accountants (JICPA) dated November 4, 2014).

land to another company in which Tokyu Land Corporation has

Accordingly, the figures above include such assets offered as security

made preferred equity investment and treated the transaction as aand the secured obligations as follows.
U.S. dollars(thousands)

Yen (millions)Land owned by Tokyu Land Corporation and IZU KANKOU

Date of revaluation­KAIHATSU, subsidiaries of the company, were revalued pursuant toTokyu Land Corporation

the Law ­Concerning Land Revaluation (Law No. 34, promulgated(Revaluation on merger of subsidiaries) March 31, 2001

March 31, 1998).

IZU KANKOU KAIHATSU

2016

2015

Real estate for sale
Other noncurrent liabilities

March 31, 2000

¥2,261¥2,261¥     –
¥     –

2016

$20,188$20,188

January 31, 2001

The market value of the land revaluated was higher than the book
Method of revaluation

value after revaluation at March 31, 2015 and 2016, respectively. As

Value of land is determined based on the price which is described insuch, the difference is not stated.

Of the long-term loans payable, the following are in the form of non-recourse loans whereby the allowances for the payment of such debt arelimited to certain specified assets.
U.S. dollars(thousands)

Yen (millions)

Article 2, Item 5 of the Ordinance Implementing the Law Concerning
Land Revaluation (Government Ordinance No. 119, promulgatedShort-term loans payable(Current portion of long-term loans payable)
Long-term loans payable

March 31, 1998). Value of certain portions of the land is determinedbased on Item 2, 3, and 4 of the Government Ordinance.

2015

2016

2016

¥ 83,014¥381,962¥ 30,681¥362,676$  273,938$3,238,179

Specified assets subject to allowances for the payment of such debt are as follows:

8. Pledged Assets and Secured Liabilities
Pledged assets and secured liabilities at March 31, 2015 and 2016 are summarized as follows:(1) Pledged assets
U.S. dollars(thousands)

Yen (millions)

Inventories (Real estate for sale)
Buildings and structures
Land
Investment securities
Long-term loans receivable

71 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

U.S. dollars(thousands)

Yen (millions)

2015

2016

2016

¥100,984
86,209594,770125
251¥782,342¥ 55,628
103,438
588,364
153
237¥747,822$  496,679
923,554
5,253,250
1,366
2,116
$6,676,982

Real estate for sale
Land
Buildings and structures

2015

2016

2016

¥100,984
591,943¥ 83,781¥ 52,216
585,538¥100,981$  466,214
5,228,018$  901,616

In addition to the above, certain consolidated subsidiaries as borrowers have the right to demand additional investment from the Tokyu Land
Corporation of ¥63,029 million at March 31, 2015 (excluding those that arise as a result of convulsion of nature or other events in case of development type silent partnerships, etc.).

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 72

9. Short-term Loans Payable and Long-term Debt

11. Change in Purpose of Possession

Short-term loans payable at March 31, 2015 and 2016 consist of loans principally from banks with weighted average interest rates of 0.32% in 2016.

The following amount was transferred from property, plant, and equipment to real estate for sale due to a change in the purpose of possession.

Long-term debt at March 31, 2015 and 2016 are summarized as follows:
U.S. dollars(thousands)

Yen (millions)
2016

2015

0.78% unsecured corporate bond, maturing 2016
0.70% unsecured corporate bond, maturing 2017
0.81% unsecured corporate bond, maturing 2017
0.63%unsecured corporate bond, maturing 2018
0.56%unsecured corporate bond, maturing 2018
0.39%unsecured corporate bond, maturing 2019
0.639%unsecured corporate bond, maturing 2021
0.298% unsecured corporate bond, maturing 2020
0.856% unsecured corporate bond, maturing 2025
0.968% unsecured corporate bond, maturing 2026
0.371% unsecured corporate bond, maturing 2021
Loans principally from Japanese banks and insurance companies (including loans inforeign currencies), maturing 2017 to 2026 with weighted average interest rates of
0.72% in 2016.
SecuredUnsecuredLess current portion2016¥   10,000
10,00010,00010,00010,00010,00010,00010,00010,000––¥        –10,00010,00010,00010,00010,00010,00010,00010,00010,00010,000$        –89,28689,28689,28689,28689,28689,28689,28689,28689,28689,286425,569
493,592
1,009,162(170,500)¥  838,661

395,997490,619
986,617(173,953)¥ 812,664

3,535,688
4,380,527
8,809,080(1,553,152)$  7,255,929

Year ending March 31,

Yen (millions)

2018
2019
2020
2021
2022 and thereafter¥202,239
104,897
76,98786,897
341,643¥812,664

U.S. dollars(thousands)$1,805,705
936,580
687,384
775,866
3,050,384$7,255,929

10. Commitment Lines

2016

2015

From property, plant and equipment to real estate for sale
From real estate for sale to property, plant and equipment

loss on valuation of inventories is included in “Operating cost”.
U.S. dollars(thousands)

Yen (millions)
2016

2015

Loss on valuation of inventories¥1,8922015
For the year ended March 31, 2015, the Company recognized impairment loss on fixed assets in the following asset groups:

Leased assets
Assets used by the Company Leased assets
Assets used by the Company
Others (28 assets)

Type

Location

Land, buildings and structures, other fixed assets
Land, buildings and structures, other fixed assets
Land, buildings and structures, other fixed assets
Land, buildings and structures, other fixed assets

To determine impairment losses, assets are divided into groups thatare minimal units that generate cash flows independently of otherassets and asset groups. Consequently, the Group wrote down the

2015

2016

2016

¥229,469
54,000(61,497)¥221,972$2,048,830
482,143(549,080)$1,981,893¥3,279¥2,017¥   919¥1,758consecutive years. The amounts written down were recorded as
impairment loss ¥7,974 million under extraordinary losses.
The recoverable value of the asset groups was measured by theircarrying amounts of 41 asset groups to their recoverable values. These

net selling price. The net selling price was determined by value

asset groups were those where sales or retirement were planned, andbased on real estate appraisal standards, value at which the asset

those where losses were recorded from operating activities forgroup could be sold, or market price of land and other assets.

Primary use

Leased assets
Leased assets
Leased assets
Others (7 assets)

Type

Land, buildings and structures, other fixed assets
Land, buildings and structures, other fixed assets
Land, buildings and structures, other fixed assets
Land, buildings and structures, other fixed assets

To determine impairment losses, assets are divided into groups thatare minimal units that generate cash flows independently of otherassets and asset groups. Consequently, the Group wrote down the

73 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

Impairment loss
Yen (millions)Sendai-shi, Miyagi-ken
Shibuya-ku, Tokyo
Machida-shi, Tokyo-to
Other area

For the year ended March 31, 2016, the Company recognized impairment loss on fixed assets in the following asset groups:¥229,769
54,000(43,217)¥240,552$32,455

13. Impairment Loss on Fixed Assets

ment lines with 4 banks at March 31, 2015 and 2016, respectively these contracts at March 31, 2015 and 2016 are summarized as follows:

Limit of overdraft
Line of credit
Borrowing outstanding
Available commitment lines

2016¥3,6352016

Yen (millions)$206,152$238,955

The balance of inventories at the end of the fiscal year is the amount after a write-down corresponding to declined profitability. The following

The Company and certain consolidated subsidiaries entered into contracts for overdraft with 21 banks at March 31, 2015 and 2016, and commitU.S. dollars(thousands)

2016¥23,089¥26,763¥39,376¥     –

12. Loss on Valuation of Inventories

Primary use

The aggregate annual maturates of long-term debt after March 31, 2017 are as follows:

U.S. dollars(thousands)

Yen (millions)

Location

Toyohashi-shi, Aichi-ken
Chuo-ku, Tokyo-to
Osaka-shi, Osaka-fu
Other area

Impairment loss
Yen (millions)

Impairment loss
U.S. dollars (thousands)¥3,674¥2,580¥1,203¥2,108$32,804$23,036$10,741$18,821consecutive years. The amounts written down were recorded as impairment loss ¥9,567 million ($85,420 thousand) under extraordinary losses.
The recoverable value of the asset groups was measured by theircarrying amounts of 10 asset groups to their recoverable values. These

net selling price. The net selling price was determined by value

asset groups were those where sales or retirement were planned, andbased on real estate appraisal standards, value at which the asset

those where losses were recorded from operating activities forgroup could be sold, or market price of land and other assets.
TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 74

14. Other Comprehensive Income

Yen (millions)2016

The following table presents components of other comprehensive income for the year ended March 31, 2016:(1) Recycling associated with other comprehensive income
U.S. dollars(thousands)

Yen (millions)
2015

Valuation difference on available-for-sale securities:
Amount arising during the year
Recycling
Total valuation difference on available-for-sale securities¥10,982–¥10,982

2016

2016

¥1,728(18)¥1,709$15,429(161)$15,259

Before tax effectTax effect

After tax effect¥1,709
110
–
(245)
(28)
(233)
¥1,313¥(140)
(36)
277
–
(283)
–
¥(182)¥1,569
73
277
(245)
(311)
(233)
¥1,130

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefits
Share of other comprehensive income of entities accounted for using equity method
Total accumulated other comprehensive income

U.S. dollars (thousands)
2016

Deferred gains or losses on hedges:
Amount arising during the year
Recycling
Total deferred gains or losses on hedges(75)–¥    (75)110–¥  110982–$   982

Foreign currency translation adjustment:
Amount arising during the year
Recycling
Total foreign currency translation adjustment

2,356–¥ 2,356(245)–¥ (245)(2,188)–$ (2,188)

Remeasurements of defined benefits:
Amount arising during the year
Recycling
Total remeasurements of defined benefits

(884)
1,047
¥   163(953)
925¥  (28)(8,509)8,259$  (250)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefits
Share of other comprehensive income of entities accounted using equity method
Total accumulated other comprehensive income

Before tax effectTax effect

After tax effect$15,259982–(2,188)(250)(2,080)$11,723$(1,250)
(321)
2,473
–
(2,527)–$(1,625)$14,009652
2,473(2,188)(2,777)(2,080)$10,089

15. Supplementary Cash Flow Information
For the purpose of the statement of cash flows, the Company considers all highly liquid investments with little risk of changes in value that have

Share of other comprehensive income of entities accounted for using equity method:Amount arising during the year
Recycling
Total share of other comprehensive income of entities accounted for using
equity method
Amount before tax effectTax effectTotal accumulated other comprehensive income

maturities of generally three months or less when purchased to be cash equivalents. The components of cash and cash equivalents at March 31,
745
–

(233)
–

(2,080)–2015 and 2016 are as follows:¥   745
14,172(2,582)¥11,590¥ (233)1,313(182)¥1,13011,723(1,625)$10,089

2016

2015

$ (2,080)
Cash and deposits
Time deposits with maturity over three Months
Short-term investment securities
Cash and cash equivalents¥40,230(366)–¥39,864¥94,275(466)
139¥93,9492016$359,196(3,268)–$355,929

The details of significant non-cash transactions(2) Tax effect associated with other comprehensive income
Yen (millions)

U.S. dollars(thousands)

Yen (millions)

2015

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefits
Share of other comprehensive income of entities accounted for using equity method
Total accumulated other comprehensive income

U.S. dollars(thousands)

Yen (millions)

Before tax effectTax effect

After tax effect¥10,982
(75)
–
2,356
163
745
¥14,172¥(3,178)
22
717
–
(143)
–
¥(2,582)¥ 7,803
(52)
717
2,356
19
745
¥11,5902015

The amount transferred from property, plant and equipment to real estate for saledue to change in purpose of holding the real estate.
The amount transferred from real estate for sale to property, plant and equipment
due to change in purpose of holding the real estate.

2016

2016

¥39,376¥23,089$206,152¥     –

¥26,763$238,955

16. Information Regarding Certain Leases(Finance Lease Transactions as lessee)
Finance leases, which commenced on or before March 31, 2008, other than those in which the ownership of the leased assets is to be transferred to the lessees at the end of the lease term, are accounted for using the same method as that of operating leases. Additional informationon these finance leases as of and for the years ended March 31, 2015 and 2016 are as follows:

75 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 76

(1) Acquisition cost, accumulated depreciation, accumulated impairment loss, and carrying amount of leased properties (mainly office equipment) at March 31, 2015 and 2016 if they were capitalized
U.S. dollars(thousands)

Yen (millions)
2016

2015

Acquisition cost
Accumulated depreciation
Carrying amount¥7,3302,858¥4,472¥7,252
3,152¥4,099

2016$64,750
28,143$36,598(2) Future lease payments at March 31, 2015 and 2016
U.S. dollars(thousands)

Yen (millions)
2016

2015

Due within one year
Due after one year
Total¥  606
6,726¥7,333¥  602
6,124¥6,7262016$ 5,375
54,679$60,054

17. Financial Instruments
Financial instruments at March 31, 2015 and 2016 are summarized(a)	Monitoring of credit risk (The risk that customers or

Overview

	Each operating department monitors the status of major­counterparties may default)(1) Policy for financial instruments

counterparties and manages the due dates and balances of

The Group raises funds (primarily bank loans payable) needed for its

lease and guarantee deposits made by each counterparty. The

capital expenditure plans. In fund management, the Group empha-

Group seeks to identify at an early stage any collectability

sizes liquidity and avoids market risks as much as possible by investing

issues due to financial difficulties of counterparties to mitigate

short-term. The primary purpose of derivative transactions is to hedge

equivalent thereof at March 31, 2015 and 2016
U.S. dollars(thousands)

Yen (millions)
2016

2015

Lease payments
Reversal of impairment loss account on leased assets
Depreciation expense
Interest expenses¥  613–378¥  295¥  607–372¥  2782016$ 5,420–
3,321$ 2,482(b)	Monitoring of market risks

enter into derivative transactions for the purpose of speculation.

	(The risks arising from fluctuations in foreign exchange rates,interest rates and others)
on loans payable, the Group uses interest rate swaps. In rela-are preferred equity securities of special purpose companies undertion to investment securities, the Group regularly monitors thethe Asset Liquidation Act, shares in companies with which the Groupfair values and financial positions of the issuers (counterpar-

has business relationships, and bonds held to maturity. The Groupties). The Group reviews the status of its holdings of financial

has exposures to the credit risks of issuers, interest rate risks, andinstruments, other than bonds held to maturity, considering

market price fluctuation risks.
Investments in silent partnerships are investments in special
purpose companies and are exposed to the credit risks of issuers andLease and guarantee deposits for leased properties are exposed tothe credit risks of counterparties.

Future lease payments of non-cancellable leases at March 31, 2015 and 2016 are as follows:
U.S. dollars(thousands)

Yen (millions)Due within one year
Due after one year
Total

	To minimize the risks arising from fluctuations in interest rates

Primary operational investment securities and investment securities

interest rate risks.
(Operating Lease Transactions as lessee)

credit risk.

interest rate risks and reduce interest payments. The Group does not(2) Types of financial instruments and related risk(3) Amount of lease payments, reversal of impairment loss account on leased assets, depreciation expense equivalent, and interest expenses(3) Risk management for financial instruments

as follows:

The purpose of loans payable and bonds payable is the raising of

2015

2016

2016

operating funds (primarily short-term funds) and funds for capital¥ 21,733
138,520¥160,254¥ 20,567
189,965¥210,533$  183,634
1,696,116$1,879,759

expenditure (long-term funds). Floating-rate loans and bonds are
exposed to interest rate risks, but the risks are hedged using derivatives (interest rate swaps).

market trends and relationships with counterparties.
(c)	Monitoring of liquidity risk	(The risk that the Group may not be able to meet its obligations on scheduled due dates)	Based on reports from each division, the Group prepares andupdates its cash flow plans on a timely basis to manage liquidity risk.
(4) Supplementary explanation of the estimated fair value offinancial instruments
The fair value of financial instruments is based on quoted market
prices, if available. When there is no quoted market price, fair value isreasonably estimated. Since various assumptions and factors are(Operating Lease Transactions as lessor)

used in estimating the fair value, different assumptions and factors

Future lease payments of non-cancellable leases to be received at March 31, 2015 and 2016 are as follows:
U.S. dollars(thousands)

Yen (millions)Due within one year
Due after one year
Total

77 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

2015

2016

2016

¥ 26,985
169,938¥196,923¥ 30,200
186,880¥217,080$  269,643
1,668,571$1,938,214

could result in different fair value.

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 78

Estimated Fair Value of Financial Instruments

2. Financial instruments for which it is extremely difficult to determine the fair value

Carrying value of financial instruments on the consolidated balance sheet as of March 31, 2016 and estimated fair value are shown in the following table. The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Please refer toNote 2).

U.S. dollars(thousands)

Yen (millions)Operational investment securities
Unlisted stocks
Investments in silent partnerships—noncurrent¥ 1,272
45,930¥ 2,247$ 11,357
410,089$ 20,063

Yen (millions)
Carrying value

Estimated fair value

Difference¥   40,230¥   40,230¥     –

922
61,657¥  102,810
61,49758,000100,000
886,617¥1,106,114¥      (49)938
61,657¥  102,826
61,49758,000101,099
895,080¥1,115,676¥      (49)15–¥    15––(1,099)(8,463)¥ (9,562)¥     –

(1) Cash and deposits(2) Securities and investment securities	  Held-to-maturity securities	  Other securities
Total assets(1) Short-term loans payable(2) Commercial papers(3) Bonds payable(4) Long-term loans payable
Total liabilities
Derivatives

Because no quoted market price is available and future cash flows cannot be estimated, it is extremely difficult to determine the fair value.
Therefore, the above financial instruments are not included in the table of financial instruments with estimated fair values.
U.S. dollars(thousands)

Yen (millions)Lease and guarantee deposits
Long-term lease and guarantee deposited¥ 63,405¥174,058$  566,116$1,554,089

Because no quoted market price is available, calculation of the substantial deposit period is difficult, and the amount is not significant, theabove financial instruments are not included in the table of financial instruments with estimated fair values.
3. Redemption schedule for receivables and marketable securities with maturities at March 31, 2016

U.S. dollars (thousands)
Carrying value

Estimated fair value

Difference$  359,196$  359,196$     –

(1) Cash and deposits(2) Securities and investment securities	  Held-to-maturity securities	  Other securities
Total assets(1) Short-term loans payable(2) Commercial papers(3) Bonds payable(4) Long-term loans payable
Total liabilities
Derivatives

8,232
550,509$  917,946
549,080
517,857
892,857
7,916,223$9,876,018$     (438)8,375
550,509$  918,089
549,080
517,857
902,670
7,991,786$9,961,393$     (438)134–$   134––(9,813)(75,563)$ 85,375$     –

Notes:

Bonds payable (Including current portion of bonds)

1. Methods to determine the estimated fair value of financial

The fair value of bonds is based on present value of the total of

instruments and other matters related to securities and deriva-

principal and interest discounted by an interest rate determined

tive transactions

taking into account the remaining period of each bond and current

Assetscredit risk.

Cash and deposits

Long-term loans payable (Including current portion of long-term

Since these items are settled in a short period of time, their carrying

loans payable)

value approximates fair value.

The fair values are estimated by discounting the total principal andSecurities and Investment securities

interest, using rates at which similar new loans would be made.

The fair value of held-to-maturity securities is based on prices pro-

Floating-rate long-term loans payable satisfy the requirements forvided by Japan Securities Dealers Association. The fair value of otherspecial treatment of interest rate swaps and are estimated by dis-securities is based on quoted market prices.

counting the total principal and interest of the loans and the inter-

Yen (millions)

Deposits
Investment securities
Held-to-maturity securities(1) National and local government bonds(2) Corporate bonds
Other securities with maturities(1) National and local government bonds(2) Corporate bonds
Total

Due in one year
or less

Due after one year
through five years

Due after five years
through ten years

Due after ten years¥40,230¥       –

¥       –

¥       –

76
–

845
–

–
–

–
–

25
–
¥40,33246–¥   891––¥       ––
–¥       –Due in one year
or less

Due after one year
through five years

Due after five years
through ten years

Due after ten years$359,196$    –$       –

$       –

679
–

7,545
–

–
–

–
–

223
–
$360,107411–$7,955––$       ––
–$       –U.S. dollars (thousands)

Deposits
Investment securities
Held-to-maturity securities(1) National and local government bonds(2) Corporate bonds
Other securities with maturities(1) National and local government bonds(2) Corporate bonds
Total

est rate swaps combined, using rates at which similar loans would
Liabilities

be made.

Short-term loans payable and Commercial papers
Since these items are settled in a short period of time, their carrying

Derivatives

value approximates fair value.

Please see Note 19. Derivative Financial Instrument for information
on derivative transactions.

79 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 80

18. Securities

Yen (millions)2016

Securities held by the Company as of March 31, 2015 and 2016 are summarized as follows:(1) Held-to-maturity Securities
Yen (millions)2015

Securities whose fair value exceeds book value:
National and local government bonds
Subtotal
Securities whose fair value does not exceed book value:
National and local government bonds
Subtotal
Total

Book value

Fair value

Difference¥  898898¥  909
909

¥  10
10

247
247
¥ 1,146247
247¥ 1,157

(0)
(0)
¥  10

Securities whose fair value exceeds book value:
National and local government bonds
Subtotal
Securities whose fair value does not exceed book value:
National and local government bonds
Subtotal
Total

Book value

Fair value

Difference¥  922922¥  938
938

¥ 15
15

–
–
¥  922––¥  938––¥ 15

U.S. dollars (thousands)
2016

Securities whose fair value exceeds book value:
National and local government bonds.
Subtotal
Securities whose fair value does not exceed book value:
National and local government bonds.
Subtotal
Total

Book value

Fair value

Difference$8,232
8,232$8,375
8,375

$134
134

–
–
$8,232––$8,375––$134

Yen (millions)

Securities whose book value exceeds acquisition cost:
StocksNational and local government bonds
Subtotal
Securities whose book value does not exceed acquisition cost:
StocksNational and local government bonds
Other
Subtotal
Total

Difference¥ 61,375
71
61,446¥ 37,121
70
37,192¥ 24,253
024,254210––
210¥ 61,657

228
–
–
228
¥ 37,420

(17)
–
–
(17)
¥ 24,236

Securities whose book value exceeds acquisition cost:
StocksNational and local government bonds
Subtotal
Securities whose book value does not exceed acquisition cost:
StocksNational and local government bonds
Other
Subtotal
Total

Book value

Acquisition cost

Difference$547,991
634
548,625$331,438
625
332,071$216,545
0216,554

1,875
–
–
1,875
$550,509

2,036
–
–
2,036
$334,107

(152)
–
–
(152)
$216,393

Notes: Securities for which it is extremely difficult to determine the fair value

U.S. dollars(thousands)

Yen (millions)Book value
2016

Other Securities

2015

Operational investment securities
Unlisted stocks, etc
Investments in silent partnerships¥    –
9,587¥1,5482016¥1,272
6,545¥2,247$11,357
58,438$20,063

Because these instruments do not have quoted market prices and is considered to be extremely difficult to determine their fair values, they(2) Other Securities
2015

Acquisition cost

U.S. dollars (thousands)
2016

Yen (millions)2016

Securities whose book value exceeds acquisition cost:
StocksNational and local government bonds
Subtotal
Securities whose book value does not exceed acquisition cost:
StocksNational and local government bonds
Other
Subtotal
Total

Book value

are not included in “Other securities” in the table above.

Book value

Acquisition cost

Difference¥  54,958
20
54,979¥  32,439
20
32,460¥  22,519
0
22,5190
59
64
125¥  55,105

0
59
64
125
¥  32,585

(0)
(0)
–
(0)
¥  22,519(3) Sales of Other Securities
Sales of other securities and corresponding aggregate gains and aggregate losses for the years ended March 31, 2015: Not applicable.
Sales of other securities and corresponding aggregate gains and aggregate losses for the years ended March 31, 2016: Not applicable.

19. Derivatives
Contract/notional amount and the estimated fair value of the derivative instruments as of March 31, 2015 and 2016 are summarized as follows:(1) Derivatives to which hedge accounting is not applied : Currency-related transactions
Yen (millions)

81 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report2015

Type of derivatives

Non-market transaction

NDF
To sell foreign currency: Indonesian rupiah

Contract/
notional amountAmount due
after one year

Fair value

Unrealized
gain (loss)¥ 11,079¥  4,171¥  (36)¥  (36)TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 82

Defined benefit plan

Yen (millions)
2016

Type of derivatives

Non-market transaction

NDF
To sell foreign currency: Indonesian rupiah
Interest rate cap transactions

Non-market transaction

Contract/
notional amountAmount due
after one year

Fair value

Unrealized
gain (loss)¥ 8,415¥ 9,467¥ 5,950¥     –¥ (49)¥  (0)¥ (49)¥  (0)

U.S. dollars (thousands)
2016

Type of derivatives

Non-market transaction

NDF
To sell foreign currency: Indonesian rupiah
Interest rate cap transactions

Non-market transaction

Contract/
notional amountAmount due
after one year

Fair value

Unrealized
gain (loss)$75,134$84,527$53,125$     –$(438)$  (0)$(438)$  (0)

Note: The fair value is determined based on the quoted price obtained from the counterparty financial institutions of the derivatives transactions.

(2) Derivatives to which hedge accounting is applied : Interest rate-related transactions
2015

1. Principle method
U.S. dollars(thousands)

Yen (millions)
2016

2015

Retirement benefit obligations at beginning of year
Cumulative effects of changes in accounting policies
Restated balance
Service cost
Interest cost
Actuarial loss
Retirement benefits paid
The amount of transfer in association with changing from the simplified method   to the principle method.
Retirement benefit obligations at end of year2016

¥29,448(148)
29,299
1,763
276
1,053
(1,327)¥31,120–
31,120
1,853
269
681
(1,469)$277,857–
277,857
16,5452,402
6,080(13,116)55¥31,120

252¥32,708

2,250$292,036

1,709
269
(97)

1,825
191
(177)

16,295
1,705(1,580)(55)¥ 1,825(159)¥ 1,679(1,420)$ 14,991

Yen (millions)

Hedge accounting method

Type of derivatives

Deferred hedge accounting

Interest rate swaps
Receive/floating Pay/fixedInterest rate swaps
Receive/floating Pay/fixedSpecial treatment for interest rate swaps

I. Table of reconciliation of retirement benefit obligations as of the beginning and end of the fiscal period

Contract/
notional amountAmount due
after one year

Fair value

Long-term debt¥    2,170¥    2,170¥   (27)

Long-term debt¥  388,445¥  287,982¥ (Notes)

Major hedged items

2016

Yen (millions)

Hedge accounting method

Type of derivatives

Major hedged items

Special treatment for interest rate swaps

Interest rate swaps
Receive/floating Pay/fixedLong-term debt

Contract/
notional amountAmount due
after one year

Fair value¥  430,681¥ 355,151¥(Notes)

2. Simplified method
Retirement benefit obligations at beginning of year
Retirement benefit cost
Retirement benefits paid
The amount of transfer in association with changing from the simplified method   to the principle method.
Retirement benefit obligations at end of year

II. Table of reconciliation of pension assets as of the beginning and end of the fiscal period

2016

2015

2016

U.S. dollars (thousands)

Hedge accounting method

Type of derivatives

Major hedged items

Special treatment for interest rate swaps

Interest rate swaps
Receive/floating Pay/fixedLong-term debt

Contract/
notional amountAmount due
after one year

Fair value$3,845,366$3,170,991$(Notes)

Notes:
1. Interest rate swaps which qualify for the special treatment for interest swaps is treated together with the hedged long-term debt. Accordingly, the fair value of those interest rate swaps areincluded in the fair value of the long-term debt.
2. The fair value is determined based on the quoted price obtained from the counterparty financial institutions of the derivatives transactions.

U.S. dollars(thousands)

Yen (millions)

Pension assets at beginning of year
Expected return on plan assets
Actuarial loss
Contributions from employer
Retirement benefits paid
Pension assets at end of year

¥6,571
200
(271)
463
(406)
¥6,557¥6,044
260
168
460
(361)
¥6,571

2016$ 58,670
1,786(2,420)4,134(3,625)$ 58,545

III. Table of reconciliation of retirement benefit obligations and pension assets as of March 31,2015 and 2016 and retirement benefit
liability and retirement benefit asset recorded in the consolidated balance sheet

20. Employees’ Retirement and Severance Benefits
2015

The Group have defined benefit plans (i.e., welfare pension fundbenefit system. Under the defined-benefit corporate pension plan

plans and lump-sum retirement benefit plan). The amounts of ben-and lump-sum retirement benefit plan owned by certain consoli-

efit are determined by reference to their basic rates of pay, length of

dated subsidiaries, retirement benefit liability and retirement benefit

service, and the conditions under which termination occurs.

cost are calculated using the simplified method.

The Company and certain consolidated subsidiaries have adopted
a defined contribution pension plan for part of their retirement

83 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

U.S. dollars(thousands)

Yen (millions)
2016

2016

Retirement benefit obligations under the non-savings-type plan
Net amount of liability and asset recorded in the consolidated balance sheet¥ 7,189(6,571)
618
25,756¥26,374¥ 7,332(6,557)774
27,056¥27,830$ 65,464(58,545)
6,911
241,571$248,482

Retirement benefit liability
Retirement benefit asset
Net amount of liability and asset recorded in the consolidated balance sheet

26,751(377)¥26,374

28,473(642)¥27,830

254,223(5,732)$248,482

Retirement benefit obligations under the savings-type plan
Plan assets at fair value

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 84

IV. Components of retirement benefit cost for the year ended March 31,2015 and 2016
U.S. dollars(thousands)

Yen (millions)
2016

2015

Service cost
Interest cost
Expected return on plan assets
Amount expensed associated with the change from the simplified method to theprinciple method
Amortization of transition difference resulting from change in accounting standard
Amortization of actuarial loss
Amortization of prior service cost
Retirement benefit cost calculated using the simplified method
Retirement benefit cost for the defined benefit plan

2016

¥1,763276(260)¥1,853269(200)$16,545
2,402(1,786)

–
351
650
36
269
¥3,087

92
–
890
34
191
¥3,131

821
–
7,946
304
1,705
$27,955

V. Remeasurements of defined benefit plans, net of tax
U.S. dollars(thousands)

Yen (millions)
2016

2015

Transition difference resulting from change in accounting standard
Prior service cost
Actuarial loss
Total

2016

¥  –
(34)
62
¥ 28

¥ 360
36
(234)
¥ 163

$   –
$(304)
554$ 250

VI. Remeasurements of retirement benefit plans
The following items are recorded under remeasurements of retirement benefit plans (before deduction of tax effects) for the year ended March
31, 2016.
U.S. dollars(thousands)

Yen (millions)2015

Unrecognized prior service cost
Unrecognized actuarial loss
Total

2016

2016

(168)
(4,135)¥(4,303)(203)(4,072)¥(4,275)(1,500)(36,920)$ 38,420

VII. Pension assets
1. The ratio by major category of the total pension assets as of March 31, 2015 and 2016 are set forth below.
2015

Bonds
StocksGeneral account
Others
Total

38%
27%
28%
7%
100%

2016

40%
23%
29%
8%
100%

Defined contribution plan
The amount required to be contributed to the defined contribution plan are ¥1,238 million and ¥1,219 million ($10,884 thousand ) for the year
ended March 31, 2015 and 2016.

21. Income Taxes
Significant components of deferred tax assets and deferred tax liabilities at March 31, 2015 and 2016 are as follows:

Deferred tax assets:
Valuation loss on inventories
Valuation loss on securities
Amortization of intangible assets
Allowance for doubtful accounts
Accrued expenses
Accrued bonuses to employees
Retirement benefit liability
Net operating loss carry forwards
Unrealized inter-company profits
Impairment losses on fixed assets
Loss of investments in silent partnerships
Valuation difference on consolidated subsidiaries
Undistributed loss from consolidated subsidiaries
Accrued enterprise tax/business office tax
Revaluation of assets for merger
Asset retirement obligations
Other   Gross deferred tax assets   Less: valuation allowance   Total deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-sale securities
Allowance for doubtful accounts
Valuation difference on consolidated
Subsidiaries
Reserve for advanced depreciation of noncurrent assets
Loss on approval for exchange of land rights
Property, plant and equipment corresponding to asset retirement obligations
Other   Total deferred tax liabilities   Net deferred tax assets

2015

2016

2016

¥   343
2,742
3,724
212
80
3,400
8,052
732
441
3,189
277
1,359
797
1,082
7
1,365
4,287
32,097(6,920)¥ 25,176¥   548
2,115
3,561
190
200
3,579
7,789
1,445
369
2,088
372
1,977
636
1,087
7
1,363
6,679
34,014(8,321)¥ 25,692$   4,893
18,884
31,795
1,696
1,786
31,95569,545
12,902
3,295
18,643
3,321
17,652
5,679
9,705
63
12,17059,634
303,696(74,295)$229,393¥  7,2038¥  7,343
6$  65,563
54

29,726
2,621
811
850
917
42,139¥(16,962)

28,139
2,950
206
907
2,129
41,684¥(15,991)

251,241
26,3391,839
8,098
19,009372,179$(142,777)

To determine the long-term expected rate of return on pension assets, the current and forecast allocation of pension assets and the current andexpected long-term rates of return on various assets constituting the pension assets are considered.
VIII. Matters regarding assumptions for actuarial calculations
Major assumptions for actuarial calculations as of March 31, 2015 and 201685 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

U.S. dollars(thousands)

Yen (millions)

2. Method of establishing the long-term expected rate of return on pension assets

Discount rateLong-term expected rate of return on pension assets
Expected rate of salary increase

U.S. dollars(thousands)

Yen (millions)

2015

2016

0.41%–1.20%
0.75%–5.00%
1.22%–6.72%

0.00%–1.10%
0.75%–5.00%
1.22%–7.47%

Deferred tax assets-current
Deferred tax assets-non current
Deferred tax liabilities-current
Deferred tax liabilities-non current

2015

2016

2016

¥  7,011
7,919(1,728)(30,164)¥(16,962)¥  9,818
6,489(1,668)(30,630)¥(15,991)$  87,661
57,938(14,893)(273,482)$(142,777)

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 86

Breakdown by major items that caused a significant difference between the effective statutory tax rate and the burden ratio of corporate
taxes after applying tax effect accounting is as follows:
Effective statutory tax rate (Adjustments)
Items not included in tax deductions permanently, such as entertainment expenses
Items not included in taxable income permanently, such as dividend income
Inhabitant tax on a per capita basis
Increase/decrease in the amount of valuation reserve
Amortization of goodwill
Tax breaks to expand income and tax breaks to promote capital investment
to improve productivity
Elimination of inter-company transactions for gain on sales of investment securities
Equity in earnings of entities accounted for by the equity method
Reduction of deferred tax assets at year end due to changes in tax rates
OthersBurden ratio of corporate taxes after applying tax effect accounting

The Act on Partial Revision of the Income Tax Act (Act No. 15 of

2016
33.1%
0.8%
(0.3)%
0.6%
3.0%
3.3%

2015
Since the difference between the effective
statutory tax rate and the burden ratio ofcorporate taxes after applying tax effectaccounting is less than five hundredths of theeffective statutory tax rate, the note is omitted.

(1.4)%
0.0%
0.6%(1.6)%
0.1%
38.1%

differences that are expected to be realized in the consolidated fiscal

2016) and the Act on Partial Revision of the Local Tax Act (Act No. 13

23. Per Share Information
Basic net income per share was computed based on the net income available for distribution to shareholders of common stock and theweighted average number of shares of common stock outstanding during the year.
Diluted net income per share is not presented as there are no dilutive potential shares.
Yen

U.S. dollars
2016

2015

Net asset per share of common stock as of March 31
Net income per share of common stock for the year ended March 31¥687.92¥ 47.18¥649.40¥ 41.45

2016

$6.14
$0.42

Bases of calculation for net income per share are as follows:
U.S. dollars(thousands)

Yen (millions)

For the year ended March 31
Profit attributable to owners of parent
Profit attributable to owners of parent of common stock
Weighted average number of shares of common stock (thousands)

2015

2016

2016

¥ 25,230¥ 25,230
608,775¥ 28,718¥ 28,718
608,769$  256,411$  256,411

year beginning on April 1, 2018, respectively.

of 2016) were enacted in the Diet on March 29, 2016, and corporate

As a result of the change in tax rates, deferred tax assets (thetax rates, etc. will be reduced from the consolidated fiscal year begin-amount after deducting deferred tax liabilities) and remeasurements

ning on April 1, 2016. As a result, the effective statutory tax rate usedof defined benefits have decreased by ¥786 million ($7,018 thou-for calculating deferred tax assets and deferred tax liabilities will besand) and ¥58 million ($518 thousand), respectively, while incomechanged from 33.1%(the effective statutory tax rate used for calculat-

taxes-deferred and valuation difference on available-for-sale securi-

ing deferred tax assets and deferred tax liabilities that will be realized

ties have increased by ¥725 million ($6,473 thousand) and ¥395

on or after April 1, 2016 was 32.3%) to 30.9%, pertaining to tempo-

million ($3,527 thousand), respectively.

rary differences that are expected to be realized in the consolidated

In addition, deferred tax liabilities for land revaluation has

fiscal year beginning on April 1, 2016 and the consolidated fiscal year

decreased by ¥275 million ($2,455 thousand), and revaluation

beginning on April 1, 2017, and to 30.6%, pertaining to temporary

reserve for land has increased by the same amount.

Bases of calculation for net asset per share are as follows:
U.S. dollars(thousands)

Yen (millions)

As of March 31
Total net assets
Non-controlling interests
Net assets of common stock at March 31
Number of shares of common stock at March 31 (thousands)

2015

2016

2016

¥398,282(2,948)¥395,333
608,771¥422,381(3,596)¥418,785
608,767$3,771,259(32,107)$3,739,152

24. Shareholders’ Equity
The Corporation Law of Japan provides that an amount equal to at least 10 percent of distributions paid in cash be appropriated as a legal

22. Investment and Rental Properties

reserve until the aggregated amount of the capital reserve and the legal reserve equals 25 percent of common stock.
The Company and certain consolidated subsidiaries own office buildings for lease in Tokyo and other areas. The carrying value in the consolidated balance sheet and corresponding fair value of those properties are as follows:

The portion of such aggregated amount in excess of 25 percent of common stock may become available for distributions subsequent torelease of such excess to retained earnings.

Yen (millions)
Carrying value

Fair value

As of April 1, 2015

Net change

As of March 31, 2016

As of March 31, 2016

¥705,660¥161,258¥866,918¥967,743

U.S. dollars (thousands)
Carrying value

Fair value

As of April 1, 2015

Net change

As of March 31, 2016

As of March 31, 2016

$6,300,536$1,439,804$7,740,339$8,640,563

Notes:
1. The carrying value represents the acquisition cost less accumulated depreciation and cumulative impairment loss.
2. Of the changes during the fiscal year under review, increases were mainly attributable to the acquisition of properties of ¥176,109 million ($ 1,572,401 thousand) and transfers to leased propertiesof ¥12,827 million ($ 114,527 thousand), and decreases were chiefly due to the sales of properties of ¥38 million ($ 339 thousand) and transfers to real estate for sale of ¥15,796 million ($141,036
thousand).
3. The fair value is mainly estimated in accordance with appraisal standards for valuing real estate.
4. Determining the fair value of properties in the planning stage (consolidated balance sheet amount of ¥107,724 million ($ 961,821 thousand) as of March 31, 2016) is extremely difficult, since they
are in the early stages of development. For this reason, they are not included in the table above.

25. Segment Information
The Group reorganized its structure and some reportable segments

Agents; real estate brokerage and property sales, (5) Wellness; (i) develop-

effective April 1, 2015. The segment information of the previous fiscal year

ment and sales of membership resort hotels and country houses and, (ii)have been reclassified in accordance with the new segment structure.

ownership and management of resort facilities, hotels for medium- tolong-term stays, senior housing and membership sports clubs, (6) Tokyu

The business of the Company and its consolidated subsidiaries iscomposed primarily of seven segments:(1) Urban Development; (i) development, leasing, and operation of
office buildings, retail facilities, rental residences and other properties and,(ii) sales of properties for investors, (2) Residential; development and sales

Hands; retail sales of materials and products for living and D-I-Y, and (7)Business Innovation and Others, (i) development, sales, and leasing ofcondominiums and other properties in overseas, (ii) construction ofresidential homes and others.
Information by geographic areas is omitted as overseas sales of theof condominiums and detached housing, (3) Property Management;

Company for the year ended March 31, 2016 are less than 10 percent of(i) property management of condominiums, buildings and retail facilities

consolidated revenue.

and, (ii)construction of common areas of condominiums, (4) Real-Estate

87 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 88

Independent Auditor’s Report

Summarized information by business segment for the year ended March 31, 2015 and 2016 are as follows:
Yen (millions)Year ended March 31, 2015

Urban
Development

Residential

Property
Management

Real-Estate
AgentsWellness

Tokyu
Hands

Innovation
Business

Elimination/
Headquarters

Revenues:
Third party customers
Inter-segment
Total
Operating income
Total assets

Consolidated

264,568
2,821
267,390
38,6701,354,197

104,823
18
104,8415,524
146,548

128,320
7,771
136,091
9,097
89,58458,9232,444
61,368
9,381
57,141

88,895
701
89,597
5,983
231,081

87,478451
87,930894
36,054

40,135
7,412
47,547(557)
61,039–(21,617)(21,617)(5,694)(1,837)773,149–
773,149
63,3001,973,801

10,098129–
82,573

156
–
–
613

770
1,897
–
1,764

1,203
–
589
1,619

6,419
(3)
–
11,074

1,151
–
–
3,535

300
1
4,289
434

87
2,488
609
581

20,1884,514
5,488
102,198

Year ended March 31, 2016

Urban
Development

Residential

Property
Management

Real-Estate
AgentsWellness

Tokyu
Hands

Innovation
Business

Elimination/
Headquarters

Consolidated

Revenues:
Third party customers
Inter-segment
Total
Operating income
Total assets

255,9242,819
258,744
44,791
1,377,662

117,67440
117,714
6,962
148,644

136,559
8,670
145,230
8,031
91,85578,821
1,499
80,321
10,22659,782

89,676529
90,205
6,412
240,247

95,392355
95,748
1,071
38,444

41,4299,795
51,225(3,041)
56,282–(23,710)(23,710)(5,703)(28,536)

815,479–
815,479
68,7501,984,382

10,285––60,267

289
–
–
8,367

652
2,080
–
2,264

1,224
–
47
1,924

6,752
(22)
–
13,999

1,337
–
–
3,216

281
1
37,229
349

183
2,488
673
324

21,008
4,548
37,95090,713

Year ended March 31, 2016

Urban
Development

Residential

Property
Management

Real-Estate
AgentsWellness

Tokyu
Hands

Innovation
Business

Elimination/
Headquarters

Consolidated

Revenues:
Third party customers
Inter-segment
Total
Operating income
Total assets

2,285,036
25,1702,310,214
399,920
12,300,554

1,050,661
357
1,051,018
62,161
1,327,179

1,219,277
77,411
1,296,696
71,705820,134

703,759
13,384
717,152
91,304
533,768

800,6794,723
805,40257,2502,145,063

851,7143,170
854,893
9,563
343,250

369,90287,455457,366(27,152)
502,518–
7,281,063(211,696)–(211,696) 7,281,063(50,920)
613,839(254,786) 17,717,696

91,830––538,098

2,580––
74,705

5,821
18,571–
20,214

10,929–420
17,17960,286(196)–
124,991

11,938––28,7142,509
9332,402
3,116

1,634
22,2146,009
2,893

Depreciation expenses
Amortization of goodwill
Investment in equity-method affiliates
Capital expenditures

Yen (millions)

Depreciation expenses
Amortization of goodwill
Investment in equity-method affiliates
Capital expenditures

U.S. dollars (thousands)

Depreciation expenses
Amortization of goodwill
Investment in equity-method affiliates
Capital expenditures

89 TOKYU FUDOSAN HOLDINGS 2016 Integrated Report

187,571
40,607
338,839809,938

TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 90

会社概要
・株式情報
Corporate Data/Stock Information
会社概要・株式情報
会社概要

名会 社概
称 要 東急不動産ホールディングス株式会社

Company Profile

株式情報
As of March 31, 2016

上株
場式
取情
引報
所

東京証券取引所
Stock Information

東京都千代田区丸の内一丁目
株主名簿管理人号2016
4番1
As of March
31,3289
三井住友信託銀行株式会社
東京証券取引所
東京都千代田区丸の内一丁目
株主名簿管理人
番11Limited号
4
株Tokyo Stock Exchange
100
同事務取扱場所番
号
東京都千代田区丸の内一丁目
Shareholder Registry
Sumitomo Mitsui Trust4Bank,
Administrator:
1-4-1
Marunouchi,
Chiyoda-ku,
Tokyo
Securities
Code:
3289
証
券
コ
ー
ド
3289
三井住友信託銀行株式会社
発行可能株式数
2,400,000,000株
三井住友信託銀行株式会社 証券代行部
Handling Office of Shareholder
Sumitomo Mitsui Trust Bank, Limited
Share Trading Unit:
100 shares
株
単
元
株
式
数
100
同事務取扱場所
東京都千代田区丸の内一丁目
4番1号
株
発
行済株式数
640,830,974
同
取 次 窓
口 Administrator:
三井住友信託銀行株式会社
Registry
Stock Transfer Agency 全国各支店
Number of shares authorized to be 2,400,000,000 sharesTokyoissuedby the年
Company:
発行可能株式数
三井住友信託銀行株式会社
証券代行部
月1日から翌年3株
月31日まで事
業
度42,400,000,000
郵便物送付先〒168-0063 1-4-1 Marunouchi, Chiyoda-ku,
Contact:
Sumitomo Mitsui Trust Bank, Limited
Total No. of Shares Issued:
640,830,974 shares
株
発時
行株
済主
株総
式会
数
640,830,974
同 取 次 窓 口
三井住友信託銀行株式会社
東京都杉並区和泉二丁目号
8番4全国各支店
毎年
定
6月
Network of nationwide
branches
Fiscal Year:
April 1 to March 31 of the following year
Mailing
Address:
2-8-4
Izumi,
Suginami-ku,
Tokyo, 168月
日から翌年
月
日まで
事
業
年
度
4
1
3
31
郵
便
物
送
付
先
〒
168-0063
月日
・
定時株主総会株主確
定日
Annual General Meeting ofJune each year 3 31
電 話 照 会 先
三井住友信託銀行株式会社 証券代行部
0063
Shareholders:
東京都杉並区和泉二丁目
番
号
8
4
月
毎年
定時株主総会
6・利益配当 3月31日（フリーダイヤル）
TEL：0120-782-031
Sumitomo
Mitsui Trust Bank, Limited
Shareholders' Record Date:• Annual General Meeting ofStock Transfer Agency 証券代行部
・中間配当
定時株主総会株 主 確 定 日
3月
31日
電 話 照 会 先
三井住友信託銀行株式会社
日31・9月March30
Shareholders+0120-782-031 (free dial)
Telephone Inquiries:• Profit Distribution March 31
・その他
利益配当
3月31日
TEL：0120-782-031（フリーダイヤル）
あらかじめ公告する一定の日・• Interim Dividend September 30• Other Public
・
中間配当
9月notification
30日 of certain
公告掲載URL http://www.tokyu-fudosan-hd.co.jp/notice/
電子公告の方法によりおこないます。
公 告 方 法（英文名 Tokyu Fudosan Holdings Corporation)
東急不動産ホールディングス株式会社
名称
Corporate
Tokyu東京都港区南青山
Fudosan Holdings2-6-21
Corporation
所 在 地Name:〒107-0062
TK南青山ビル（英文名 Tokyu Fudosan Holdings Corporation)
Address:
TK
MinamiAoyamaBuilding,
2-6-21
Minami Aoyama, Minato-ku, Tokyo 107-0062
T E L
03-5414-1199（代表）〒107-0062 東京都港区南青山2-6-21 TK南青山ビル
所 在 地
Telephone+81-3-5414-1199
大隈 郁仁
代 表 者No.: 代表取締役社長
（代表）
T
E
L
03-5414-1199
Representative:
Yuji
Okuma,
資 本 金60,000,000,000円 President
代表取締役社長
代
表者
Capital:60 billion大隈
yen 郁仁事業内容
グループ経営管理事業
資 本 Activities:
金円 and administration of the Tokyu Fudosan Holdings Group
60,000,000,000
Business
Management
設
立
2013年10月1日
事業内容
グループ経営管理事業
Established:
October 1, 2013
従業員数●●●●●●人（2016年 3月31日現在）
設 of Employees:
立月1日
2013年1055
No.
（ 連 結 ） ●●●●●●人（2016年 3月31日現在）
従業員数●●●●●●人(Consolidated)
19,230（2016年 3月31日現在）

証 券 コ ー ド
上元
場
取式
引数
所
単
株
Stock
Exchange:

No.連of Employees
byUrban（Development
Segment（結 ） ●●●●●●人
日現在）
2016年 3月31
Business Segment:
Residential Segment

1,746

公

Property Management Segment

6,769

Real-Estate Agents Segment

2,651

Wellness Segment

3,568

Tokyu Hands Segment

2,809

dates in advance

あらかじめ公告する一定の日
・その他やむを得ない事由によりをすることができない場合は日本経済新聞に掲載いたします。
※ただし、

988

Corporate489

As of April 1, 2016

Management
Management
Function Function

To k y u F u d o s a n H o l d i n g s C o r p o r a t i o n
To k y u F u d o s a n H o l d i n g s C o r p o r a t i o nTokyu Community
Consolidated
Subsidiaries
Corporation

Tokyu Livable, Inc.
Tokyu Livable,
Inc.
Consolidated
Subsidiaries

Tokyu Hands, Inc.

Tokyu Housing
Lease Corporation

Tokyu Hands,
Inc.
Consolidated
Subsidiaries

Tokyu Housing
Consolidated
Subsidiaries
Lease Corporation• TOKYU HOMES CORPORATION• COMMUNITY ONE CO., LTD.

• ELLE-STAFF CORPORATION• HANDS LAB INC.

• Tokyu Corporate Housing• MARIMO COMMUNITY
CO.LTD
Consolidated
Subsidiaries• TOKYU LIVABLE Subsidiaries
STAFF
Consolidated

Consolidated Subsidiaries

Management Inc.
Consolidated
Subsidiaries

OperatingOperating
Function Function• TS COMMUNITY CORP.
COMMUNITYONE CO., LTD.
••TOKYU
BLDG. MAINTENANCE
MARIMO COMMUNITY••SHONAN
COMMUNITYCO.LTD
TS COMMUNITY
BuildingCORP.
Service Inc.
••DAI－ICHITOKYUDISTRICTBLDG. MAINTENANCE••YOGAHEATING•ANDSHONANCOMMUNITY
COOLING
CO.,LTD.
DAI－ICHI••TC
FORUMBuilding
CORP. Service Inc.
YOGA DISTRICT••INFIELD
CO.,LTD HEATING
AND COOLING CO.,LTD.
• TC FORUM CORP.
• INFIELD CO.,LTD

CORPORATION
ELLE-STAFFCORPORATION••LIVABLEASSET•MANAGEMENTTOKYU LIVABLEINC.
STAFFCORPORATION• TOKYULIVABLE (SHANGHAI),INC.
LIVABLELIVABLE(TAIWAN),INC.
ASSET••TOKYUMANAGEMENT INC.
• TOKYU LIVABLE (SHANGHAI),INC.
• TOKYU LIVABLE(TAIWAN),INC.

• HANDS LAB INC.

Financial instruments
Treasury stockbusiness
operators
Breakdownof Shares
by Shareholder
32,063,644
12,350,899
5.00%
1.93%
Financial instruments
Treasury stockbusiness operators
32,063,644
Individuals and12,350,899
5.00%
others
1.93%
104,803,472
16.35%
Individuals andTotal No. of others
Foreign
104,803,472
companies, etc.
Shares Issued:
16.35%
188,146,715 640,830,974 shares
Financial29.36%
Total No. of
Foreigninstitutions
companies, etc.
Shares Issued:
198,810,234
188,146,715 640,830,974 shares
31.02%
Financial29.36%Other domestic
institutions
companies
198,810,234
104,656,010
31.02%
16.33%
Other domestic
companies
104,656,010
16.33% Major Shareholders

Tokyu Corporation• TOKYU SPORTS Subsidiaries
OASIS Inc.
Consolidated• ISHIKATSU EXTERIOR INC.
TOKYU HOMES CORPORATION••EWEL,Inc.
TOKYULANDSPORTSOASIS Inc.
••TOKYUCAPITAL•MANAGEMENTISHIKATSU EXTERIOR
INC. INC.
EWEL,Inc.
••TLC
Activia Investment•Management
TOKYU LAND Inc.
CAPITAL
MANAGEMENT
INC.
• TLC
Comforia Investment•Management
TLC Activia Investment
INC.
Management• TOKYULAND SCInc.
•MANAGEMENTTLC Comforia CORPORATION
Investment
Management• Tokyu
Stay Co.,INC.
Ltd.
TOKYUResort
LAND SC••TokyuService Co., Ltd
MANAGEMENT• TOKYURESORTCORPORATION•CORPORATION
Tokyu Stay Co., Ltd.
Tokyu Resort
Service Co.,••TOKYUE-LIFE DESIGN
Inc. LtdTOKYURESORT••P.T.
TOKYU
LAND INDONESIACORPORATION• TOKYU E-LIFE DESIGN Inc.
• P.T. TOKYU LAND INDONESIA

電子公告の方法によりおこないます。 公告掲載URL http://www.tokyu-fudosan-hd.co.jp/notice/

Breakdown of Shares by Shareholder

Tokyu
Holdings
Group スグル ープ
東 急 Fudosan
不 動 産 ホールディング

Tokyu Land
Consolidated
Subsidiaries
Corporation

法※ただし、やむを得ない事由によりをすることができない場合は日本経済新聞に掲載いたします。

東 急 不 動 産 ホール ディング スグル ープ

Tokyu Community
Corporation

方210

Innovation Business Segment

Tokyu Land
Corporation

告• Residential Partners Co.,Ltd..
• Tokyu Corporate Housing
Management Inc.
• Residential Partners Co.,Ltd..

Breakdown of the Number of Shareholders

Distribution of Stock by the Size of Holdings

More than fiveMore than 10 units
Other domestic
Foreign
Financial instruments
More than one unit units but less than 10 units
but less than 50 units
Financialcompanies
companies, etc. business operators
but
less
than
five
units
3,833,538
48,338,562
institutions
Breakdown of583
the Number579
of Shareholders
Distribution of Stock by the Size of Holdings
68
4,803,843
0.60%
7.54%
79
0.81%
More
than
five
More
than 10 units
0.80%
0.09%
0.75%
0.11%
Other domesticMore than 50 units
Foreign
Financial instruments
More than one unit units but less than 10 units
but less than 50 units
Financialcompanies
but less than 100 units
one
unitfive units
companies, etc. business operatorsLess thanbut lessthan3,833,538
48,338,562
institutions
583
Treasury
16,774,630
59,208579
68stock
4,803,843
0.60%
7.54%
79
0.81%
1
2.62%
0.01%
0.80%
0.09%
0.75%
0.11%
More than 50 units
0.00%
More than 100 units
but less than 100 units
Less than one unit
but less than 500 units
Treasury stock
16,774,630
59,208stock
Treasury
27,345,757
1
2.62%
0.01%
32,063,644
Total No. of
4.27%
0.00%
More
than 100 units
Total:
5.00%
Shares Issued:
Morebut
thanunits
less500
than
500 units
71,985 persons
but
less
than
1,000
units
640,830,974
sharesTreasury stock
27,345,757
8,655,938
32,063,644
Total No. of
4.27%
1.35%
Total:
5.00%
Shares Issued:
More than 500 units
71,985 persons
More than 5,000
units
but less than 1,000 units
640,830,974
sharesIndividuals and others
466,541,049
More than 1,000 8,655,938
units
70,67572.80%
1.35%
but less than 5,000 units
98.18%
32,414,805
More than 5,000 units
5.06%
Individuals and others
466,541,049
More than 1,000 units
70,67572.80%
but less than 5,000 units
98.18%
32,414,805
Number of Shares Held
Percentage of(Thousand Shares)
Shares Held
持株比率 5.06%

96,87915.91%

Major
Japan Trustee Services
BankShareholders
Ltd. (Trust Account)

Number of Shares Held35,888(ThousandShares)Percentage of
5.90%
Shares HeldThe
MasterTrust Bank of Japan Ltd. (Trust Account)
Tokyu
Corporation
Sumitomo
MitsuiTrust Bank,
LimitedJapan Trustee
Services
Bank Ltd.
(Trust Account)

31,25096,87921,00835,888

5.13%
15.91%
3.45%
5.90%

The
Life Insurance
Company,
LimitedThe Dai-ichi
Master Trust
Bank of Japan
Ltd. (Trust
Account)
State
Street
Bank
and
Trust
Company
Sumitomo Mitsui Trust Bank, Limited 505223

14,91831,2508,127
21,008

2.45%
5.13%
1.34%
3.45%

NipponLife Insurance
Company
The Dai-ichi
Life Insurance
Company, LimitedJapan
Trustee
Services
BankCompany
Ltd. (Trust505223
Account 4)
State Street Bank and Trust

8,107
14,918
7,387
8,127

1.33%
2.45%
1.21%
1.34%

State
StreetWest Client-Treaty
NipponLifeBank
Insurance
Company 505234
Japan
JapanTrustee
Trustee Services
Services Bank
Bank Ltd.
Ltd. (Trust(Trust Account
Account 7)
4)

7,127
8,107
6,647
7,387

1.17%
1.33%
1.09%
1.21%

State Street Bank West Client-Treaty 505234

7,127

1.17%

Japan Trustee Services Bank Ltd. (Trust Account 7)

6,647

1.09%

持株比率

(Notes)1.Tokyu Fudosan Holdings Corporation has
32,063,644 share of treasury stock, which are
excluded from the above breakdown of(Notes)major shareholders.
1.Tokyu
Fudosan Holdings Corporation has
2.The
percentage
heldstock,is calculated
32,063,644
shareofofshares
treasurywhich areafter
deductingtreasury
excluded
from theabovestock.
breakdown ofmajor shareholders.
2.The percentage of shares held is calculated
after deducting treasury stock.

編集方針□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■□■ □□□□■ □□Editorial
Policy □□□□■ □□□□■ □□□□■ □□□□■ □□□□■
Financialinformation:
CSR information:□□■ □□□□■□□□□■□□□□■□■ □□□□■□□□□■ □□□□■ □編集方針□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□
The
FudosanHoldings Grouphas decided
to producean □□□□■ □□□□■ □□□□■ □□□□■ □□□□■□■ □□□□■ □□□■Tokyu
□□□□■
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■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■□■ □□□integrated
report fromthe fiscal □□□□■
year ended March
31, 2016
to□□■ □□□□■
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stakeholders
with a better
understandingof the□□□□■
Group's □□□□■□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□
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past,
present, andfuture endeavors
to createvalue. This
report □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■□■ □□□■ □□□□■
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information
ontheGroup'smediumand
long-term□□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■□■ □□□□■ □□□□■□□■ □□□□■
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management
policiesandbusinessstrategies
well as □□□□■
financialand□□□□■□□□□■ □□□□■□□□□■□□□□■as□□□□■□□□□■□□□□■ □□□□■□□□■ □□□□■ □□□□■ □□□□■ □□□□□□□■ □□□□■
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non-financial
data□□□□■□□□□■
preparedin accordancewith theinternational□■ □□□□■□□□□■□□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■ □□□□■□■ □□□□□□□■reporting
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integrated
frameworkof theInternational
Integrated
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For moredetailed□□□□■
financial and
CSR information,
http://www.tokyu-fudosan-hd.
□■□□□□■□□□□■□□□□■ □□□□■ □□□□■ http://www.tokyu-fudosan-hd.
□□□□■ □□□□■ □□□□■ □□□□■□□□□■□■ □□□weask□□□□■
that you referto the Company's website.

co.jp/english/ir/co.jp/english/csr/

59 TOKYU FUDOSAN HOLDINGS 2016 統合報告書

TOKYU FUDOSAN HOLDINGS 2016 統合報告書 60

TOKYU FUDOSAN HOLDINGS 2016 統合報告書
59 TOKYU
FUDOSAN HOLDINGS 2016 Integrated Report
91

TOKYU FUDOSAN HOLDINGS 2016 統合報告書 60
TOKYU FUDOSAN HOLDINGS 2016 Integrated Report 92