FY03/2023

The First Half
Financial Results Briefing
November 17, 2022

FY03/2023

Overview of First Half
FY03/23 Financial Results

The First Half FY03/2023 Financial Results BriefingOverview

Business
environmentGovernment investment in construction increased slightly. Private investment in construction remained
firm not only for warehouses and logistics facilities, for which demand expanded due to the COVID-19
pandemic, but also for factories, thanks to the recovery of companies’ appetite for capital investment.

Prices for equipment and materials continued to rise, and the competitive environment remained
severe.

Gross profit recovered owing to the elimination of individual factors that had caused losses due toconstruction defects, etc.

Non-consolidated orders
Net Sales
Gross Profit
Gross Profit Margin

Full-Year
Results

Operating Income(Consolidated)

Financialconditions(Consolidated)： 147,145million yen（1H FY2022:119,771million yen,22.9％ YoY）
： 128,842million yen（1H FY2022:111,614million yen,15.4％ YoY）:
8,267million yen（1H FY2022:411million yen,ー）: 6.4%（1H FY2022:0.4%,6.0pt YoY)：
166million yen(1H FY2022:-7,152million yen）

The progress rate of non-consolidated orders against the full-year forecast for orders is about 53%.

Consolidated net sales increased due to orders received in the past fiscal year for building construction.

Gross profit increased sharply owing to the elimination of the deterioration in profit/loss that occurredin the previous fiscal year due to quality problems (about 10.3 billion yen).



Operating income returned to profitability due to higher gross profit.

Equity capital was 93,252million yen, Equity ratio was at 40.0％, increase of 1.1 percentage points
compared to March 31, 2022.
Based on the policy of aiming at a dividend on equity ratio (DOE) of 4.0% or higher, a dividend of 36
yen per share is planned for FY03/2023.



Copyright(C) Tokyu Construction. All rights reserved.

1

FY03/23 First Half Results (Consolidated)
The Company’s non-consolidated orders were about 53% ahead of the full-year forecast.
Operating income returned to profitability due to the elimination of the deterioration in
profit/loss that occurred in the same period of the previous year as a result of quality(Millions of yen)problems.
Items

1H
FY03/22

Ratio

1H
FY03/23

Ratio

Differencecompared toprevious year

Rate ofchangeOrders(non-consolidated)

119,771-

147,145-

27,374

22.9%

Net Sales

111,614-

128,842-

17,227

15.4%

411

0.4%

8,267

6.4%

7,856

ー

7,563

6.8%

8,101

6.3%

537

7.1%

Operating income(7,152)(6.4%)

166

0.1%

7,318

ー

Ordinary income(7,151)(6.4%)

294

0.2%

7,445

ー

Profit (losses) attributable toowners of parent(7,668)(6.9%)(284)(0.2%)

7,384

ー

Gross profit
Selling, general andadministrative expenses

Copyright(C) Tokyu Construction. All rights reserved.

2

Factors Affecting Net Income (Consolidated)
Completed construction gross profit increased significantly due to the elimination of thedeterioration in profit/loss that occurred in the same period of the previous year.
4,000

2,000

(Millions of yen)

Increase incompleted
construction
gross profit,
7,843

Foreignexchange
gain/loss
605

0Increasein realestate1H FY03/22△2,000incomeProfit attributable to13
owners of parent△4,000

Increase in
SG&A
Expense537

Gain on saleof investment
securities ,256

Decline inequity-method
investment
gain
170

Increase intax
expenses
298

Others,
188

Loss on1H FY03/23
forwardcontracts Profit attributable to, 139
owners of parent-284-7,668△6,000△8,000

Profit increase
Copyright(C) Tokyu Construction. All rights reserved.

Profit decline
3

FY03/23 First Half Results (Non-Consolidated)
Completed construction sales increased due to the construction projects progressing as expected.
Completed construction gross profit increased due to an increase in completed construction sales
and the elimination of the deterioration that occurred in the same period of the previous year.
(Millions of yen)

1H
FY03/22Items

1H FY03/23
Forecast

Ratio

Differencecompared
to previous
year

Rate ofchangeCompleted construction sales
Civil engineering
Building construction

103,901
24,47579,426

117,01227,442
89,570

100%
23.5%
76.5%

13,111
2,967
10,143

12.6%
12.1%
12.8%

Completed construction gross profit

Civil engineering
Building construction(745)(5,350)
4,605

8,380
1,685
6,694

7.2%
6.1%
7.5%

9,125
7,036
2,089

ー
ー
45.4%

Real estate sales
Real estate gross profit

818
390

856
391

45.8%

37
1

4.5%
0.4%

104,720(355)

117,868
8,772

7.4%

13,148
9,127

12.6%
ー

7,158

7,536

6.4%

378

5.3%

Operating income(7,513)

1,235

1.0%

8,749

ー

Ordinary income(7,306)

1,678

1.4%

8,985

ー

Net income(7,708)(204)(0.2%)

7,504

ー

Net sales

Gross profit

Selling, general and administrative
expenses

Copyright(C) Tokyu Construction. All rights reserved.

4

Completed construction sales・Completed construction
gross profit（ Non-Consolidated ／ Civil engineering ）Completed construction sales ：Revenue increased due to increases in thedomestic public and general private sectors.
Gross profit ：It was as expected, with the elimination of aggravating factors that
arose in the same period of the previous year due to construction defects.
(Millions of yen)

Gross profit

Completed construction sales
30,53824,475

3,323

8.5%

800

4,968
3,381

Profit margin ratio

27,442

2,268
1,773

1,332

6.1%

2,604

1,685

7,348

5,461
1H FY03/21
18,864

14,971

17,9601H FY03/22

Overseas
Tokyu Group companies-21.9%

General private

1H FY03/21

1H FY03/22

1H FY03/23

1H FY03/23

Copyright(C) Tokyu Construction. All rights reserved.

Domestic public-5,350(Profit margin ratio
excluding individual
factors (-6,750): 5.7%)

5Orders（ Non-Consolidated ／ Civil engineering ）The acquisition of overseas ODA projects (for example, a subway construction
project in the Philippines) contributed significantly to the increase in orders
received.
Progress of about 57% against the full-year forecast for orders of 75.4 billion yen.
42,720(Millions of yen)

Civil engineering

1H
FY03/221H
FY03/23

Differencecompared
to previous
year

19,641

Rate ofchangeOverseas

Domestic public

13,625

14,246621

4.6%

25,723

Domestic
private

11,182

8,833(2,348)(21.0%)

916

Generalprivate

5,219

6,957

1,738

33.3%

Tokyu Group
companies

5,962

1,875

(4,087)(68.5%)

916

19,641

18,724―25,72342,72016,996

66.1%

Overseas

Copyright(C) Tokyu Construction. All rights reserved.

5,962
5,219

Tokyu Group
companies
Generalprivate

1,875

Domestic
public

6,957

13,625

14,246

1H FY03/22

1H FY03/23

6

Completed construction sales・Completed construction
gross profit（ Non-Consolidated ／ Building construction）
Completed construction sales ：Increased about 13% year on year as major
projects received in the past fiscal year progressed.
Gross profit ：Profit increased due to an increase in completed construction sales.
Profitability improved mainly due to completed construction projects.
(Millions of yen)

Gross profit

Completed construction sales
56,36079,42689,57060

10,053

Profit margin ratio

676

8.0%

5.8%

7.5%

10,993

6,694
0
6,180

65,354

76,34143,448

4,482

4,605

1H FY03/21

1H FY03/22

Overseas
Tokyu Group companies

6,731

3,017

2,498

1H FY03/21

1H FY03/22

1H FY03/23

Copyright(C) Tokyu Construction. All rights reserved.

General private
Domestic public

1H FY03/23

7

Orders（ Non-Consolidated ／ Building construction）
Orders increased, with orders received for large-scale redevelopment projects aswell as factories and distribution warehouses.
Progress of about 52% against the full-year forecast for orders of 200 billion yen.
94,047(Millions of yen)

1H
FY03/22

Differencecompared
to previous
year

Rate ofchange

6,471

3,550

(2,921)(45.1％)

Domestic
private86,870100,571

13,70015.8％

Generalprivate62,47095,30932,83852.6％

Tokyu Group
companies

24,3995,261(19,138)(78.4％)

705

303

(401)

(57.0％)

94,047

104,424

10,377

11.0％

Domestic public

Building construction

1H
FY03/23

Overseas

Copyright(C) Tokyu Construction. All rights reserved.

705

104,424303
5,261

Overseas

24,399Tokyu Group
companies

95,309GeneralprivateDomestic
public62,470

6,471

3,550

1H FY03/22

1H FY03/23

8

Selling, general & administrative expenses （Consolidated）
Selling, general & administrative expenses increased ¥537 million year on year.
Expenses for R&D, digital technology, and innovation promotion increased.

SG&A
expenses

7,130

7.5%

1H FY03/21

Copyright(C) Tokyu Construction. All rights reserved.

SG&A expenses/Net sales
7,563(Millions of yen)

8,101

6.8%

6.3%

1H FY03/22

1H FY03/23

9

Balance Sheet（Consolidated）
Equity ratio was at 40.0％, increase of 1.1 percentage points compared to March
31, 2022.
Assets237,811233,047

237,811

Notes receivable, accounts
receivable from completed
construction contracts andother -10,292

173,963

Current
assets(Millions of yen)

Liabilities andequity170,176

non-current assets

28,96832,782Other nonCurrent assets

33,902Current
liabilities

115,004

129,889

Other -3,226
Cash and deposits＋8,581
Real estate for sale+1,548

31,065233,047

Property, plant andequipment -2,110

29,742

Noncurrent
liabilities

9,246

Short-termborrowings+19,994
Provision forwarranties forcompleted
construction＋1,541
Provision for loss on
construction
contracts＋1,027
Notes payable,accounts payable
for construction
contracts and other-8,713Long-term
borrowings -20,204
Retained earnings -815

93,064

Total net
assets93,911

Total accumulated othercomprehensive income＋1,424As of March 31,

As of September 30,

As of March 31,

As of September 30,

2022

2022

2022

2022

38.9％

40.0％

Equity ratio
Copyright(C) Tokyu Construction. All rights reserved.

10Interest-bearing debt, Equity, D/E ratio（Consolidated）
D/E ratio was at 0.24 times, almost flat year on year.
Interest-bearing debt

(Millions of yen)

Equity102,963
26,754

D/E ratio

93,252

92,49022,43122,221

As of March 31,

As of March 31,

As of September 30,

2021

2022

2022

0.26
times

0.24
times

0.24
times

Copyright(C) Tokyu Construction. All rights reserved.

11

Cash flow statement（Consolidated）
Free cash flow is ¥8.9 billion as cash flows from operating activities increased due
to a decrease in trade payables, etc.
(Millions of yen)

Items
Cash flows from operating
activities

Year ended
September 30,
2021

11,543

Year ended
September 30,
2022

8,977

Remarks
Cash increased mainly due to a decrease innotes and accounts receivable and anincrease in provision for warranties forcompleted construction, despite a decreasein cash due to a decrease in notes andaccounts payable and income taxes paid.
Cash increased, mainly due to proceeds fromsales of investment securities, despite
expenditures for the acquisition of
investment securities, etc.

Cash flows from investing
activities(1,202)

5

Free cash flow

10,341

8,983―(6,208)(651)

Cash decreased, mainly due to the payment
of dividends and repayment of long-termborrowings.

27

249

―

Cash and cash equivalents at
beginning of period

34,17338,648―Cash and cash equivalents at endof period

38,27847,229―Cash flows from financing
activities
Net increase (decrease) in cash
and cash equivalents

Copyright(C) Tokyu Construction. All rights reserved.

12

FY03/2023

Full-Year Forecast
The First Half FY03/2023 Financial Results BriefingP/L Forecast（Consolidated）
For net sales, completed construction sales of domestic buildings and real estate sales are
expected to increase.
Operating income is expected to be lower than the previous forecast due to deterioration in theearnings of overseas subsidiaries, despite the expected gain on sales of real estate for sale.
Net income is expected to exceed the previous forecast due to the sale of cross-shareholdings.
(Millions of yen)

FY03/2023 Forecast
Items

FY03/22Ratio

Net Sales

258,083

Gross profit

Differencecompared
to previous
Forecast

Previous

Revised

-289,000

305,000-

46,916

16,000

9,716

3.8%

20,60019,900

6.5%

10,183(700)

Selling, general andadministrative
expenses

15,794

6.1%

16,60016,800

5.5%

1,005

200

Operating income(6,078)(2.4%)

4,000

3,100

1.0％

9,178

(900)

Ordinary income(5,132)(2.0%)

4,500

4,000

1.3％

9,132

(500)

Profit (losses)
attributable to owners ofparent(7,459)(2.9%)

3,500

4,000

1.3％

11,459500

Copyright(C) Tokyu Construction. All rights reserved.

Ratio

Differencecompared
to previous
year

13

P/L Forecast (Non-Consolidated)
Completed construction sales is expected to exceed the previous forecast by about 10.3 billion
yen.
Although completed construction gross profit will decrease, operating income is expected to
exceed the previous forecast due to the expected gain on sales of real estate for sale. (Millions of yen)
FY03/2023 Forecast
Items

FY03/22

Completed construction sales
Civil engineering
Building construction
Completed construction gross profit

Differencecompared
to previous
year

Differencecompared
to previous
Forecast

Previous

Revised

Ratio

241,294
56,886
184,407258,400
64,400
194,000

268,700
65,200203,500

100%
24.3%
75.7%

27,405
8,313
19,092

10,300
800
9,500

9,601
(3,530)13,132

17,1004,200
12,90016,6004,200
12,400

6.2%
6.4%
6.1%

6,998
7,730
(732)

(500)
0
(500)

Real estate sales
Real estate gross profit

1,731(1,492)

1,600
700

7,300
2,100

28.8%

5,568
3,592

5,700
1,400

Net sales

Gross profit

243,0258,108

260,000
17,800276,000
18,7006.8%

32,974
10,591

16,000900

Selling, general and administrative expenses

14,984

15,70015,600

5.7%

615

(100)

Operating income(6,875)

2,100

3,100

1.1%

9,975

1,000

Ordinary income(6,314)

2,100

3,500

1.3%

9,814

1,400

Net income(7,494)

2,000

2,700

1.0%

10,194700

Civil engineering
Building construction

Copyright(C) Tokyu Construction. All rights reserved.

14Order Forecast（Non-Consolidated）
Civil engineering：Aim to acquire mainly domestic public service projects such as those forbuilding national land resilience and private-sector railway construction.
Building construction：200 billion yen is expected at the beginning of the period, capturing thedemand associated with the recovery of private capital investment.
(Millions of yen)

Building
construction

Civil engineering

FY03/22

FY03/23(Revised
forecast)

Differencecompared toprevious
year

Rate ofchangeDomestic public

33,30837,000

3,691

11.1%

Domestic private

18,98718,000(987)(5.2%)

General private

9,978

13,000

3,021

30.3%

Tokyu Group companies

9,009

5,000

(4,009)(44.5%)

985

20,40019,414ー

53,28175,40022,11841.5%

Domestic public

10,22418,000

7,775

76.1%

Domestic private

216,085

180,000(36,085)(16.7%)

General private

176,417160,000(16,417)(9.3%)

Tokyu Group companies

39,66720,000(19,667)(49.6%)

Overseas(4,927)

2,000

6,927

ー

221,382

200,000(21,382)(9.7%)

274,663

275,400

736

0.3%

Overseas

Total
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15

P/L・Order Forecast（Non-Consolidated／Civil engineering ）The completed construction sales is forecast to increase, as there will be progress in publicservice and overseas projects.
Completed construction gross profit is forecast to improve as the revenue deterioration
experienced in the previous fiscal year is expected to dissipate.

(Millions of yen)Completed construction sales
・Gross Profit
8.1%

6.4%

OrdersProfit Margin
Ratio

If individual factors
were excluded‐6.2%
56,886
4,349
4,517

4,000
5,500

14,19633,822

FY03/22

Overseas
Tokyu Group
companies

40,700FY03/23(Forecast)

Copyright(C) Tokyu Construction. All rights reserved.

53,281Tokyu Group
companies

5,000
13,00033,30837,000FY03/22

FY03/23

GeneralprivateDomestic
public(Forecast)【Construction work carried forward】
FY03/22

GeneralprivateDomestic
publicOverseas

20,400

985
9,009
9,978

65,20015,00075,400FY03/23(Forecast)Amount brought forward※94,00990,404

Orders53,28175,400Completed construction sales

56,886

65,200

Amount carried forward

90,404

100,604

Note*: Amount Adjusted for the Effect of AccountingStandard for Revenue Recognition, etc.

16

P/L・Order Forecast（Non-Consolidated／Building construction）
Completed construction sales is forecast to increase due to progress in the construction
projects contracted in previous fiscal years.
The completed construction gross profit margin assumes the risk of hikes inequipment/material prices.

(Millions of yen)Completed construction sales
・Gross Profit

If individual factors
were excluded

Profit Margin
Ratio

9.1%

7.1%
184,407558
26,035

Orders203,500
1,200
23,000174,000

Tokyu Group
companies

FY03/222,000
20,000Overseas

176,417160,000

Generalprivate

10,224-4,92718,00039,667

FY03/22

Tokyu Group
companies

Domestic
public

FY03/23(Forecast)【Construction work carried forward】
FY03/22

GeneralprivateFY03/23(Forecast)Amount brought forward※235,453

272,428

Orders221,382

200,000

FY03/23

Completed construction sales

184,407203,500(Forecast)Amount carried forward

272,428

268,928

Domestic
public

6,542

200,000

6.1%

Overseas

151,271

221,382

5,300

Copyright(C) Tokyu Construction. All rights reserved.

Note*: Amount Adjusted for the Effect of AccountingStandard for Revenue Recognition, etc.

17

Net Sales・Gross Profit Forecast（Construction Renewal）
Quotation requests are on the rise, and hence net sales and the amount of orders received willboth return to the pre-COVID-19 levels.
(Millions of yen)

Net Sales・Gross Profit

OrdersProfit Margin
Ratio

10.6%
9.1%

25,966
17,17014,801

FY03/22

FY03/23(Forecast)

FY03/2223,000FY03/23(Forecast)* Each of the numbers for the construction renewal business is a simple sum of numbers from Tokyu Renewal Co., Ltd. and Token
Industry Co., Ltd., subsidiaries engaged in the business, and no elimination was taken into account.
Copyright(C) Tokyu Construction. All rights reserved.

18

Net Sales・Gross Profit Forecast（International・Real estate）
International： Net sales is expected to increase due to less impact from the COVID-19 pandemic in countries inwhich business is conducted and the expected progress of large-scale ODA construction projects.It is expectedthat the profitability of some construction projects will deteriorate and repair costs for defects related toproperties delivered in past years will be incurred.
Real estate：The negative effects on revenue seen in the previous fiscal year have disappeared. Gain on sales of(Millions of yen)real estate for sale is expected this fiscal year.

International

Real estate

‐8.3%

28.8%

Gross
ProfitMarginGrossProfitMargin-15.2%-86.2%

13,385Net Sales

6,267
FY03/22Net Sales
FY03/23(Forecast)

7,300

1,731
FY03/22

FY03/23(Forecast)*Each of the numbers for Overseas is a simple sum of numbers from two overseas subsidiaries (TCI and GTC) and from non-consolidated overseas
business of the Company, and no elimination was taken into account.
TCI: Pt. Tokyu Construction Indonesia/GTC: Golden Tokyu Construction Co., Ltd. (Myanmar)*Numbers for the real estate business are the values of the sales and gross profit of the real estate business on the Company’s non-consolidated
statement of income.

Copyright(C) Tokyu Construction. All rights reserved.

19

Dividend Forecast
Based on the policy of aiming at a dividend on equity ratio (DOE) of 4.0% or
higher, a dividend of 36 yen per share is planned for FY03/2023.

Dividend per share(yen)3130Forecast

(yen)

36

30

26

Year-end
18

25（forecast）

10

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

Interim18

FY03/22

FY03/23(forecast)※Total number of shares of treasury stock for FY03/2021: 1,965,100 shares(total value of acquisition: 999,976,175 yen)
Copyright(C) Tokyu Construction. All rights reserved.

20

Progress of Long-Term
Management Plan
The First Half FY03/2023 Financial Results BriefingLong-Term Management Plan to Achieve Vision2030
To realize VISION2030, we will implement five priority strategies, with human resources and digitaltechnology as the source of our competitive advantage and the three values we provide (decarbonization, zerowaste, disaster prevention and mitigation) as the pillars of management.
Strategic【Earnings Structure for FY2030】

businessCore business
75%
Strategic Business 25%

Corebusiness【KPIs of the Long-Term Management Plan】
Management indicator

Profitability

Efficiency

SoundnessNon
financial

2021

2022

2024

2030

Results

Previous

Revised

Forecast

Forecast

Operating profit(6.0
billionyen)

4.0 billion
yen

3.1billion
yen

At least
9.0 billion
yen

At least
22.0
billion yen

Operating profit
margin

(2.4%)

1.4%

1.0%

At least
2.6%

At least
5.0%－

ROIC(※2)

－%

ROE

－%

D/E ratio

0.24
times

Capitaladequacy ratio

38.9%

0.5 times or less

Employeeengagement
ratingBB(※3)BBB

GHG emissions

50.8%
Reduction

10.0%
Reduction

ー
3.8%

4.3％

At least
7.3%

At least
7.0%
At least
10.0%

0.5 times or less
About
45%

A

AAA

15.0%
Reduction

30.0%
reduction*1The ROIC and ROE (both efficiency metrics) for FY03/2022 are “-(negative) %” because of the net loss for the fiscal year.

*2The ROIC, an important metric for measuring business performance, has been used since FY03/2022, and ROIC of 7.0% or higher is set as a medium-to longer-term target for FY03/2031. We
are working on the calculation of the ROIC for each Business for the purpose of managing invested capital more efficiently. The ROIC for FY03/2031 is stated as the target based on the previous
calculation method.
※3 Engagement rating using Link and Motivation Inc.’s “Motivation Cloud.” Subjects are employees of the Group as a whole, including subsidiaries. Rating is divided into a total of 11 stages, andthe current “BB” is the fifth rating from the top after “AAA,” “AA,” “A” and “BBB ”

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21

Efforts to Prevent Recurrence of Quality Problems, Improve
Construction Quality, and Restore Trust

Loss recorded due to construction defects, etc. (FY2021)

Recorded estimated losses related to the “defective ends of piles” disclosed on July 26, 2021.
Recorded estimated costs of removing temporary structures for civil engineering projects that were delivered in prior years.
Estimated an increase in repair costs for construction defects in some building construction projects that were delivered inprior years.

Prevention of recurrence (disclosed in May 2022)
Accountability clarification

Voluntary return of remuneration by Directors andExecutive OfficersOf remuneration for directors, the portion of variable
compensation, which is linked to short-term performance,
has not been paid to them in FY03/2023

Information sharing & Improvement of training
programs for worksite engineers

Speeding up the sharing of information about defects,
etc.; and introduction of our whistle-blowing system bymore of our subcontractors to enhance our multipleangled check-and-balance
Reform/Reinforcement of leadership skills; andreview/revision of training programs and job rotation to
improve project management capabilities

Improvement of construction quality management
system (Civil Engineering)






Review/Revision of the distribution of engineers atworksites
Assignment of personnel who take charge of quality
management
Reinforcement of support from HQ/branches to worksites(Creation of a quality management section,enhancement of manpower and technical support at
peak times, etc.)
Review/Revision of training programs to improve thecompetence of junior employees and rapidly develop
their skills

Reforming corporate cultureCompliance education for all officers and employees
Launch of measures that make communications more
frequent and effective

Efforts in FY2022
 Both Civil Engineering and Building Construction review the quality management structure and system, and continue to implement thedetermined management.
 As the period for awareness-raising activities, establish November as the quality month, with the first week as the strengthening week, towork on the improvement of quality awareness.
 In January 2022, we expanded the users of the whistle-blowing system to partner companies in order to prevent quality problems before
they occur and identify them and make improvements as early as possible.
 Completed compliance training for all employees.

Copyright(C) Tokyu Construction. All rights reserved.

22

Promoting the Three Values We Provide (Decarbonization, Zero
Waste, Disaster Prevention and Mitigation)【Business strategy１・２・３】
Responding to climate change is the most important social issue that needs to be solved and amajor business opportunity.
Improving the value of owned real estate byutilizing our expertise in construction business
TOKYU CONSTRUCTION's rental real estate
brand “TQ”
Based on the concept of "TOP QUALITY:
Innovations in every space, " and taking
advantage of the characteristics of generalcontractors, we offer (1) comfort, functionalityand design, (2) peace of mind and trust, and(3) environmental friendliness.

Acquiring “DBJ Green Building Certification*” forour four leased office buildings

Actively proposing ZEB (net Zero
Energy Building) and ZEH-M (netZero Energy House-Mansion)

ZM2021-00097-DC

We are making use of such
expertise and significant experience,
which
have
been
accumulated
through the renovation of ourInstitute of Technology using ZEB
since 2016, to optimally meet thedemand from customers who areinterested in ZEB, ZEH-M, or othergreen architecture.

*A certification system developed and operated by the Development Bank of Japan, based on the evaluation
criterion of "buildings with consideration for the environment and society," an initiative to support real estate andthe businesses that own and operate real estate.

Copyright(C) Tokyu Construction. All rights reserved.

23

Strengths of the Tokyu Construction Group “Technology,know-how, and teamwork that keep urban functions running”【Business strategy２】
Technology and know-how to reconstruct the functions of cities without impairing the convenience and safetyof daily life, cultivated from our founding spirit, spirit of challenge, and consumer orientation, and track recordof community development around railways and stations.
Teamwork that integrates civil engineering and construction to realize community development that requires
coordination with various stakeholders.

Tokyu Toyoko Line Shibuya
Station to Daikanyama Station
track switchover

Copyright(C) Tokyu Construction. All rights reserved.

Redevelpment of the areaaround Shibuya Station

Tokyo Metro Ginza Line
Shibuya Station railway
track diversion project24

Track Record of Receiving Orders by Taking Advantage ofStrengths【Business strategy２】
Participated in various projects not only for Shibuya Station and along the Tokyu Line, but also
around the station and in the vicinity of the railway, further refining our strengths.
Type 1 urban redevelopment project in the Itabashi Station
Itabashi-guchi area
(JR Itabashi Station)

Ordered by:
Nomura Real Estate Development Co., Ltd. and East
Japan Railway Company
A complex development that includes an urban condo tower directly
connected to station facilities, which is the first of such kind for stations
within the jurisdiction of JR East. Commercial facilities will be located in
the lower levels to improve convenience for station users and residents
living in the vicinity.

Copyright(C) Tokyu Construction. All rights reserved.

Type 1 urban redevelopment project in the east area of
Kakoi-cho(JR Tokyo / Metro Nakano Station)

Ordered by: Urban Redevelopment
Association for the East Area of Kakoi-Cho
Mixed-use redevelopment of a large area (approximately 2.0 ha) close to
the station that includes apartment houses, offices, and commercial
facilities. By creating a plaza that is integrated with the adjacent land anddeveloping pedestrian traffic lines, it is possible to improve theaccessibility from the station plaza.

25

Establishing Competitive Advantage Based on Strengths andresponding to changes in the business environment【Business strategy２・３】
Going forward, demand to rebuild existing towns will increase due to population concentration in cities.
Based on our accumulated strengths in "Technology and know-how that keep urban functions running," wewill integrate digital technologies and collaborate with diverse partners to transform our business model.

Copyright(C) Tokyu Construction. All rights reserved.

26

Human resources development and reform of organizational
culture【Business strategy４】
Develop human resources capable of leading innovation autonomously toward structuralchanges in the construction industry and challenges in new business areas.
Aim to create an organizational culture that strives for innovation.
Dialogue between all employees and management / executive officers:"Vision Dialogue""Digital thank-you card" to send appreciation and praise to each other

Efforts to create innovation「MOON SHOT CONTEST」

A small group of about five
employees and executives discuss
the Company's future on an equal
footing. More than 90% of theemployees participated, and thesecond round is now underway.

The new business idea contest, "MOON
SHOT CONTEST", has been held sincelast year. Among the more than 430
applications, we are proceeding withthe commercialization of several
proposals. Many business proposals
were also submitted for the second
contest.
In order to foster a culture
where people can speak franklywith each other, we use adigital thank-you cardthroughout the company toexpress appreciation.
Communication has become
more frequent and effective.

Vision dialogue between President Terada
and employees
Copyright(C) Tokyu Construction. All rights reserved.

Last MOON SHOT CONTEST 2021

27

[Inquiries]
Nishida/Morita
Corporate Planning Department, Corporate Strategy Division
TEL: +81-3-5466-5008
URL: webmaster@tokyu-cnst.co.jp

Notes
Forward-looking statements such as forecasts of thecompany’s results contained in this document are based on
information available as of the date of publication andassumptions made as of the date of publication regarding
uncertain factors that may affect future results.
Except as otherwise provided for by law, the company shallbear no obligation to update these future predictions. Actual
results may differ from future predictions due to various
factors.