FY03/2022

The First Half
Financial Results Briefing
November 18, 2021

FY03/2022

Revision to the Full-Year
Forecast
The First Half FY03/2022 Financial Results BriefingFactors Contributing to Revisions to Full-year Forecast“Notice Concerning Revisions to Full-year Forecast”(November 8, 2021)✓

Recorded estimated losses related to “Defective Ends ofPiles for an Ongoing Construction Project” (announced 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 weredelivered in prior years“Defective Ends of Piles for an Ongoing Construction
Project (follow-up report)” (November 18, 2021)✓✓

The internal examination committee with third party
member examined the “discrepancy between therecords of piling work and the investigation results,”
which was discovered in the process of investigating thecause of the defective ends of piles as announced on
July 26, 2021. As a result, it was found that someproject site workers had falsified the record table forconcrete placing, etc.
It is absolutely unacceptable that we, a construction
company whose business is built on the trust ofcustomers, let such an issue happen. We recognize andseriously and sincerely accept that there was a problem
with the quality control system as part of anorganization.

Copyright(C) Tokyu Construction. All rights reserved.

[Prevention of recurrence]Strengthen the quality control system
at construction sites➢

Improve the system for the head
office and branch offices tosupport project sites➢

Set up an expert committee andintroduce other measures for
specific projects➢

Reinforce training for engineers
and technicians on core operations
including safety, quality, andprocess control

Ensure thorough compliance education➢

Provide compliance education for
all officers and employees

2Impact on Earnings(Millions of yen)
FY03/2022 Forecast【Consolidated】

Revised(Nov 8)

Previous(May 12)

Forecast

Forecast

Ratio

Net Sales

267,000

Operating
Income(3,600) (1.3%)

Ratio

Difference compared
to previous
Forecast

pt

285,000(18,000)

7,000

2.5% (10,600) (3.8pt)

Factor (1)Changes resulting
from individual
factors

Factor (2)Other changes

Forecast

Forecast

pt

０

pt

If factor (1)were excluded(18,000)(10,250) (3.8pt)(350) (0.0pt)【NonConsolidated】

Forecast

Net Sales

250,000

267,000(17,000)0(17,000)

250,000

Civil
engineering
Building
construction

64,20069,800(5,600)0(5,600)64,200184,100

195,500(11,400)

0(11,400)

184,100

1,700
11,30008.1% (10,300) (3.6pt)

0

0

1,700

(10,250) (3.6pt)(50)(0.0pt)21,550

8.6%

Ratio

Forecast

Ratio

Forecast

Pt

Forecast

pt

Forecast

pt

Forecast

pt

4.5%

1,700
21,600Civil
engineering
Building
construction(1,400) (2.2%)

6,900

9.9%

(8,300) (12.1pt)(6,750) (9.8Pt)(1,550)(2.3pt)

5,350

8.3%

11,9006.5%

13,9007.1%(2,000) (0.6pt)(3,500) (1.1pt)

1,500

0.5pt

15,400

8.4%

Real estate

800 47.1%

800

47.1%

0

0

0

0.0pt

800

47.1%

Real estate

Gross profit

Factor (1)Changesresulting fromindividual factors

Factor (2)Other changes(Impact
excluding theabove factors)

✓
✓
✓
✓
✓
✓

0.0pt

0.0pt

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 thatwere delivered in prior years
Estimated an increase in repair costs for construction defects in some building construction
projects that were delivered in prior years
Net sales impacted by lower completed construction sales due to delays in order receipt and theprogress of some construction projects
Decline in gross profit of civil engineering due to a decrease in completed construction sales,
lower profit margin of railway civil engineering, and the impact of overseas construction
Increase in gross profit of building construction due to the reduction of construction costs
through the ingenuity of construction management, additional orders obtained, etc.

Copyright(C) Tokyu Construction. All rights reserved.

3

Dividend Forecast
Based on the policy of aiming to achieve a dividend on equity ratio (DOE)of 4.0% or more, we will pay dividends steadily and consistently in amanner not easily affected by short-term profit volatility
Dividend per share(yen)
31
25

30

40

30

26

Year-end
20（forecast）

10

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

Interim20
FY/03/22(Forecast)

Treasury stock acquisition
Total number of shares of treasury stock for FY3/2021: 1,965,100 shares(total value of acquisition: 999,976,175 yen)
Copyright(C) Tokyu Construction. All rights reserved.

4

FY03/2022

Overview of First Half
FY03/22 Financial Results
The First Half FY03/2022 Financial Results BriefingOverview

Business
environment➢ Although some industries remain in difficult situations due to the impact of COVID19, there are signs of a recovery, supported by strong public investment anddevelopments in recoveries in the domestic and overseas economies.
➢ While warehousing and distribution facilities are performing well, and capital
investment in factories is expected, the recovery of accommodation facilities is
slow.
➢ Construction costs are on an upward trend due to continued increases in the prices
of materials and equipment.
Non-consolidated orders

Full-Year
Results(Consolidated)

Financialconditions(Consolidated)： 119,771million yen（1H FY2021:122,357million yen,-2.1％ YoY）
Net Sales： 111,614million yen（1H FY2021:95,423million yen,17.0％ YoY）
Gross Profit: 411million yen（1H FY2021:8,323million yen,-95.1％ YoY）
Gross Profit Margin: 0.4%（-8.3pt YoY)
Operating Income： -7,152million yen(1H FY2021:1,192million yen）
➢ Non-consolidated orders declined slightly year on year. Progress against the full-year
forecast is about 47%.
➢

Consolidated net sales increased due to orders obtained in the previous fiscal year inbuilding construction.

➢

Gross profit fell sharply due to the recording of estimated losses resulting from individual
factors.

➢

Operating income decreased significantly due to lower gross profit.

➢

Equity capital was 93,886million yen, Equity ratio was at 44.3％, a decline of 1.1 percentage points
compared to March 31, 2021

Copyright(C) Tokyu Construction. All rights reserved.

6

FY03/22 First Half Results (Consolidated)
The Company’s non-consolidated orders fell 2.1% year on year. Progress of about 47% has
been made toward the full-year forecast.
Although net sales rose due to an increase in completed construction sales, profit dropped
significantly due to the recording of losses reflecting individual factors(Millions of yen)
Items

1H
FY03/21

Ratio

1H
FY03/22

Ratio

Differencecompared toprevious year

Rate ofchangeOrders(non-consolidated)

122,357-

119,771-(2,586)(2.1%)Net Sales

95,423-

111,614-

16,191

17.0%

Gross profit

8,323

8.7%

411

0.4%

(7,912)(95.1%)

Selling, general andadministrative expenses

7,130

7.5%

7,563

6.8%

432

6.1%

Operating income

1,192

1.2%

(7,152)(6.4%)(8,345)ーOrdinary income

1,680

1.8%

(7,151)(6.4%)(8,832)

ー

759

0.8%

(7,668)(6.9%)(8,428)ー

Profit (losses) attributable toowners of parent
Copyright(C) Tokyu Construction. All rights reserved.

7

Factors Affecting Net Income (Consolidated)
Completed construction gross profit significantly decreased due toindividual factors
Increase incompleted
construction
Decline ingross profit
4,000
loss onexcludingvaluationofDeclineindividual factors
in tax investmentOthers 2,378
2,000
expenses securities 32
246
216
759
Decline incompleted0
construction
1H FY03/21
gross profit due
Profit attributable toto individual-2,000 owners of parent
factors
10,2506,000(Millions of yen)

1H FY03/22
Profit attributable toowners of parent-7,668Declinein real Increase
Decline inestate in SG&A Increase in equityincome Expense exchange method432
loss investment
40
252
gains
327

-4,000-6,000-8,000

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

Profit decline
8

FY03/22 First Half Results (Non-Consolidated)
Although net sales rose due to an increase in completed
construction sales in building construction, profit dropped
significantly owing to individual factors
1H
FY03/21Items

1H FY03/22

Forecast

Ratio(Millions of yen)

Differencecompared toprevious
year

Rate ofchangeCompleted construction sales
Civil engineering
Building construction

86,89930,53856,360103,901
24,47579,426

100%
23.6%
76.4%

17,002(6,063)23,06519.6%(19.9%)
40.9％

Completed construction gross profit

Civil engineering
Building construction

7,086
2,604
4,482

(745)
(5,350)4,605(0.7%)(21.9%)
5.8%(7,832)(7,955)
123

ー
ー
2.7%

Real estate sales
Real estate gross profit

777
418

818
390

47.7%

41
(27)

5.3%
(6.7%)

87,677
7,504

104,720(355)(0.3%)

17,043(7,860)

19.4%
ー

6,869

7,158

6.8%

288

4.2%

Operating income

635(7,513)(7.2%)(8,148)ーOrdinary income

1,076(7,306)(7.0%)(8,382)ー

Net income

464(7,708)(7.4%)(8,173)ーNet sales
Gross profit
Selling, general and administrative
expenses

Copyright(C) Tokyu Construction. All rights reserved.

9

Completed construction sales・Completed construction
gross profit（ Non-Consolidated ／ Civil engineering ）Completed construction sales: Declined due to lower revenue fromdomestic public projects and overseas projects
Gross profit: Declined significantly due to revenue deterioration caused
by individual factors(Millions of yen)

Gross profit

Completed construction sales
43,22630,538

Profit margin ratio

24,475

9.5%

5,541

4,113
2,604

5,419
2,699

4,968
3,381
3,323

18,864

1,773
Overseas

1H FY03/20

1H FY03/21

1H FY03/22

Tokyu Group companies

14,971

General private
Domestic public

1H FY03/21-21.9%

2,268

5,461

29,565

1H FY03/20

8.5%

1H FY03/22

Copyright(C) Tokyu Construction. All rights reserved.

-5,35010Orders（ Non-Consolidated ／ Civil engineering ）Orders from the Tokyu Group increased due to a base effect, and orders
for domestic public projects were steadily won despite a year-on-year fallin them
Progress of about 45% has been made toward the ¥57 billion full-yearorder forecast(Millions of yen)

1H
FY03/21

Civil engineering

Domestic public

17,153

1H
FY03/22

13,625Differencecompared
to previous
year

Rate ofchange(3,528)(20.6%)

Domestic
private6,970

11,182

4,211

60.4%

Generalprivate

4,915

5,219

304

6.2%

Tokyu Group
companies

2,055

5,962

3,906

190.0%

624

916

292

46.8%

24,74825,723975

3.9%

Overseas

24,748
624
2,055

916
Overseas

5,962

4,915
5,219

Tokyu Group
companies
GeneralprivateDomestic
public17,153
13,625

1H FY03/21

Copyright(C) Tokyu Construction. All rights reserved.

25,723

1H FY03/22

11

Completed construction sales・Completed construction
gross profit（ Non-Consolidated ／ Building construction）
Completed construction sales: Increased about 40% year on year as
major projects received in the previous fiscal year progressed
Gross profit: Increased as a result of higher completed construction sales
but profit margin fell due to individual factors(Millions of yen)

Gross profit

Completed construction sales
126,551

56,36079,426

Profit margin ratio

14.1%

722
28,92917,862

8.0%
5.8%

60
10,993089,6906,180

65,35443,4484,482

Overseas

4,605

Tokyu Group companies
General private

7,209

6,731

3,017

1H FY03/20

1H FY03/21

1H FY03/22

Copyright(C) Tokyu Construction. All rights reserved.

Domestic public

1H FY03/20

1H FY03/21

1H FY03/22

12

Orders（ Non-Consolidated ／ Building construction）
Orders from the general private sector, which generated several orders
for major logistics projects in the previous fiscal year, declined, whileorders from the Tokyu Group were boosted by major project orders
Progress of about 47% has been made toward the ¥200 billion full-yearorder forecast
97,608436(Millions of yen)

1H
FY03/21

Building construction

Domestic public

1H
FY03/22

3,203

6,471

Differencecompared
to previous
year

3,268

Rate ofchange93,968Generalprivate83,80262,470(21,331)(25.5％)

Tokyu Group
companies

10,166

24,39914,233140.0％

436

705

268

61.5％

97,60894,047(3,561)(3.6％)

Overseas(7,098)705
24,399Generalprivate(7.6％)

Domestic
public83,802

Copyright(C) Tokyu Construction. All rights reserved.

Overseas
Tokyu Group
companies

102.0％

Domestic
private86,87010,166

94,04762,4703,203
1H FY03/21

6,471
1H FY03/22

13

Selling, general & administrative expenses （Consolidated）
Selling, general & administrative expenses increased ¥432 million year on
year
Expenses for R&D, digital technology, and innovation promotion increased
SG&A
expenses
7,608

SG&A expenses/Net sales
7,130

7.5%

(Millions of yen)

7,563

6.8%

4.1%

1H FY03/20
Copyright(C) Tokyu Construction. All rights reserved.

1H FY03/21

1H FY03/22

14

Balance Sheet（Consolidated）
The equity ratio was at 44.3%, a drop of 1.1 percentage points comparedwith March 31, 2021
Liabilities andequityAssets226,568

226,568

211,820

Cash and deposits＋4,104

158,454

144,308
Current
assets35,545non-current assets

35,31732,568Other nonCurrent assets

32,195

Costs on uncompleted
construction contracts-11,568

95,04628,012

103,509

Current
liabilities

Noncurrent
liabilities

Total net
assets(Millions of yen)Bills payable,
construction
211,820 accounts payable,
etc.-5,707
Short-term loans
payable-5,073
89,71827,661

94,439Reserve forcompensation forcompleted work
1,582
provision for loss
on construction
contracts 6,228
shareholders’equity -8,683
Accumulatedcomprehensive
income -394

As of March 31,

As of September 30,

As of March 31,

As of September 30,

2021

2021

2021

2021

45.4％

44.3％

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

15

Interest-bearing debt, Equity, D/E ratio（Consolidated）
D/E ratio was at 0.23 times, declining from March 31, 2021 due toreduced short-term borrowings
Interest-bearing debt
(Millions of yen)

Equity102,963

101,215
26,557

D/E ratio

26,754

93,886
21,615

As of March 31,

As of March 31,

As of September 30,

2020

2021

2021

0.26
times

0.26
times

0.23
times

Copyright(C) Tokyu Construction. All rights reserved.

16

Cash flow statement（Consolidated）
Free cashflow improved to ¥10.3 billion as cash flows from operating
activities increased due to reduced accounts receivable trade, etc.
(Millions of yen)

Items

Cash flows from operating
activities

Year ended
September 30,
2020(6,793)

Year ended
September 30,
2021

Remarks

11,543

Cash increase mainly due to a decreasein accounts receivable - trade and anincrease in provision for loss on
construction contracts, despite a cash
decrease resulting from the recordingof net loss

Cash flows from investing
activities(2,645)(1,202)

Purchase of investment securities,
purchase of property, plant andequipment, purchase of intangible
assets, etc.

Free cashflow(9,438)

10,341

ー

5,782(6,208)Decrease in short-term borrowings,
dividends paid, etc.

(3)

(27)

ー

Cash and cash equivalents at
beginning of period

29,54934,173ーCash and cash equivalents at
end of period

25,89038,278ーCash flows from financing
activities
Effect of exchange rate change
on cash and cash equivalents

Copyright(C) Tokyu Construction. All rights reserved.

17

FY03/2022

Full-Year Forecast
The First Half FY03/2022 Financial Results BriefingP/L Forecast（Consolidated）
The full-year forecast announced on May 12 was revised downward due
to lower net sales reflecting delays in order receipt and the progress ofsome construction projects, as well as reduced profit caused by therecording of provisions(Millions of yen)

FY03/2022 Forecast
Items

FY03/21

Ratio

Net Sales

231,483

Gross profit

Differencecompared
to previous
Forecast

Previous

Revised

-285,000

267,000-

35,516(18,000)

18,1707.8%

23,70013,1004.9%(5,071)(10,600)

Selling, general andadministrative
expenses

14,6206.3%

16,70016,700

6.3%

2,079

ー

Operating income

3,549

1.5%

7,000

(3,600)(1.3％)(7,149)(10,600)

Ordinary income

4,891

2.1%

7,300

(3,300)(1.2％)(8,191)(10,600)

Profit (losses)
attributable to owners ofparent

2,647

1.1%

4,800

(4,800)(1.8％)(7,447)(9,600)

Copyright(C) Tokyu Construction. All rights reserved.

Ratio

Differencecompared
to previous
year

19

P/L Forecast (Non-Consolidated)
Although net sales are forecast to increase due to higher completed construction
sales in building construction, profit is forecast to fall significantly owing to therecording of provisions
SG&A expenses are expected to include expenses for R&D, digital technology, and(Millions of yen)innovation promotion
FY03/2022 Forecast
Items

FY03/21

Completed construction sales
Civil engineering
Building construction
Completed construction gross profit

Differencecompared
to previous
year

Differencecompared
to previous
Forecast

Previous

RevisedRatio

214,560
75,568138,991

265,300
69,800195,500

248,300
64,200184,100

100%
25.9%
74.1%

33,739(11,368)
45,108(17,000)(5,600)(11,400)

17,854
6,031
11,82220,8006,900
13,90010,500(1,400)11,9004.2%(2.2%)
6.5%(7,354)(7,431)
77(10,300)(8,300)(2,000)Real estate sales
Real estate gross profit

1,684(1,336)

1,700
800

1,700
800

47.1%

15
2,136

ー
ー

Net sales
Gross profit

216,245
16,517

267,000
21,600250,000
11,3004.5%

33,754(5,217)(17,000)(10,300)

Selling, general and administrative expenses

14,043

15,90015,900

6.4%

1,856

ー

Operating income

2,474

5,700

(4,600)(1.8%)(7,074)(10,300)

Ordinary income

3,054

5,900

(4,500)(1.8%)(7,554)(10,400)

Net income

1,262

3,900

(5,600)(2.2%)(6,862)(9,500)Civil engineering
Building construction

Copyright(C) Tokyu Construction. All rights reserved.

Order Forecast（Non-Consolidated）

Building
construction

Civil engineering

Civil engineering: Orders from general private companies are forecast to fall back from theprevious fiscal year, when orders for major projects were recorded, despite rising orders fromthe Tokyu Group that was affected by the COVID-19 pandemic in the previous fiscal year
Building construction: While orders from general private companies are forecast to fall backfrom a sharp increase in the previous fiscal year, orders from the public sector and the Tokyu(Millions of yen)Group are expected to rise
Difference
FY03/22
Rate ofcompared to
FY03/21(Revisedpreviouschangeforecast)
year
Domestic public

37,09934,000(3,099)(8.4%)

Domestic private

25,18421,000(4,184)(16.6%)

General private

20,752

13,000(7,752)(37.4%)

Tokyu Group companies

4,432

8,000

3,567

80.5%

Overseas

1,429

2,000

570

39.9%

63,71357,000(6,713)(10.5%)

Domestic public

5,731

18,00012,268214.0%

Domestic private

235,125

180,000(55,125)(23.4%)

General private

209,636

145,000(64,636)(30.8%)

25,48835,000

9,511

37.3%

2,063

2,000

(63)

(3.1%)

242,920200,000(42,920)(17.7%)

306,633

257,000(49,633)(16.2%)

Tokyu Group companies
Overseas

Total
Copyright(C) Tokyu Construction. All rights reserved.

21

P/L・Order Forecast（Non-Consolidated／Civil engineering ）Profit margin is forecast to decline significantly due to the impact of railway and overseas
projects, in addition to individual factors(profit margin would be at the 8.3% level if individual factors were excluded)
Orders are expected to reach ¥57 billion, as forecast at the year’s start, following increased
efforts for domestic public projects(Millions of yen)Completed construction sales
・Gross Profit
8.0%

OrdersProfit Margin
Ratio

8.3%

If individual factors
were excluded

75,5688,606
8,397
14,54564,2004,800
17,40057,0002,000
8,000
13,00020,75237,099

-2.2%
3,000

63,713
1,429
4,432

34,000FY03/21

FY03/2139,000FY03/22(Forecast)

Copyright(C) Tokyu Construction. All rights reserved.

Domestic
publicGeneralprivateDomestic
public(Forecast)【Construction work carried forward】
FY03/21

Generalprivate44,019Tokyu Group
companies

FY03/22

Overseas
Tokyu Group
companies

Overseas

FY03/22(Forecast)Amount brought forward

118,531

94,009Orders

63,71357,000Completed construction sales

75,56864,200

Amount carried forward

106,676

86,80922

P/L・Order Forecast（Non-Consolidated／Building construction）
While completed construction sales are forecast to increase owing to progress in major
projects, profit margin is forecast to fall due to individual factors(profit margin would be at the 8.4% level if individual factors were excluded)
Orders are expected to reach ¥200 billion, as forecast at the year’s start, despite droppingfrom the previous year’s high level(Millions of yen)Completed construction sales
・Gross Profit
8.5%
8.4%

OrdersProfit Margin
Ratio

If individual

242,920200,000

2,063
25,488factors were

2,000
35,000Tokyu Group
companies

145,000

Generalprivateexcluded

6.5%

209,636

184,100
138,991600
27,000150
21,101

5,731

18,000FY03/21

FY03/22

Overseas
Tokyu Group
companies

150,000
104,328

13,4116,500

FY03/21

FY03/22(Forecast)

Copyright(C) Tokyu Construction. All rights reserved.

Domestic
public(Forecast)【Construction work carried forward】
FY03/21

GeneralprivateDomestic
publicOverseas

FY03/22(Forecast)Amount brought forward

133,007

235,453

Orders242,920200,000

Completed construction sales

138,991

184,100

Amount carried forward

236,935

251,353
23

Net Sales・Gross Profit Forecast（Construction Renewal）
Although client inquiries have been gradually increasing recently, the recovery is
expected to be limited due to the impact of the COVID-19 pandemic
Proposals for renewals making each whole floor or tenant “ZEB Ready” will bemade to customers(Millions of yen)
Net Sales・Gross Profit

11.4%

Orders10.9%

14,98915,575

FY03/21

FY03/22(Forecast)

13,233

FY03/21

15,390FY03/22(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.

24

Net Sales・Gross Profit Forecast（International・Real estate）
Overseas: Business expansion will be centered on ODA projects in Southeast and South Asia.
Progress in Myanmar projects will be affected
Real estate: Profitability is forecast to improve due to the disappearance of effects from thedeterioration in development revenue experienced in the previous fiscal year
(Millions of yen)International

Real estate
47.1%

0.0%

Gross
ProfitMarginGrossProfitMargin-4.2%
Net Sales-79.4%Net Sales

9,567

5,332

FY03/21

FY03/22(Forecast)

1,684

1,700

FY03/21

FY03/22(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.

25

Toward Earnings Recovery
We take the incidents that led to the revision of the earnings forecast seriously and are fullycommitted to ensuring they do not happen again and restoring confidence
We will make all-out efforts to strengthen proposal capabilities, win orders for target projects,
and improve profitability
There are no changes to the strategies outlined in the long-term management plan or theshareholder return policy. We continue to implement them

Net Sales(left axis)

Operating Income(right axis)(billions of yen)

400

40

300

30

200

20

100

10

0

0

-100

-10
FY03/18

FY03/19

Copyright(C) Tokyu Construction. All rights reserved.

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24(forecast)(forecast)(forecast)26

Appendix：Provision of three values（Decarbonization/Zero waste/
Disaster prevention and mitigation）・DX・Human resources
Decarbonization

Zero waste

Efforts to meet the needs for green architecture(ZEB, ZEH-M)
Propose optimal plans that meet the needs ofcustomers interested in environmentally friendly
buildings such as ZEB and ZEH-M
Estimation of energy consumption
and costs on the spot using ourunique “energy-saving simulation
tool”

Demonstrate technology to make each whole floor or
tenant area, instead of a whole building, ZEB Ready
Opening of a live office
showcasing renewal based on the
ZEB concept (subsidiary: Tokyu
Renewal Co., Ltd.)

Investing in venture companies
Make venture investments aimed
at creating new growth
opportunities, focusing on theprovision of three values, humanresources, and digital. The firstinvestment was made in Girasol
Energy Inc., which hastechnology for solar panel
maintenance management.
Copyright(C) Tokyu Construction. All rights reserved.

Efforts at worksites
To reduce CO2 emissions, all new construction projects willuse 100% renewable electricity
Conclusion of basic agreements withretail electricity providers for stablesupplyIntroduction of GTL fuel, an
alternative to diesel fuel with lessenvironmental impact, atconstruction sites in Japan
Develop and employ environmentally friendly materials
that effectively utilize low-carbon materials and byproducts
Low-carbon concrete: CELBIC
A portion of cement is replacedwith granulated blast furnace slag
to reduce CO2 by up to 63%

SUSTAR, a preparatory material used for
concrete placement with reduced
environmental impact
More than 90% of thecomponents are by-products,
reducing CO2 by 70%

27

Appendix：Provision of three values（Decarbonization/Zero waste/
Disaster prevention and mitigation）・DX・Human resources
DigitalOctober 2020
Turned an overseas BIM facility design
company into a subsidiary (Indochine
Engineering Limited)

BIM in Building Construction
Utilize BIM as adata platform to
pursue laborsaving andefficiency
improvementcompany-wide,
while exploring
its various
application
possibilities as adigital twin

Simulation of building completion
inspection using MR (mixed reality)(cooperation: JAPAN ERI Co., Ltd.)

January 2021
Tuned a building-cost service provider
into a subsidiary (Kawamura Quantity
Surveyor’s Co., Ltd.)
April 2021
Established Iwase Precast Co., Ltd., ajoint venture that manufactures andsells precast concrete products

May 2021
Started rolling out the BIM firm model
covering architecture, structures, andfacilities to all construction sites before
the start of construction, to promote
the company-wide use of BIM

Example of BIM/CIM utilization in civil engineering business(Shibuya Station relocation project on the Tokyo Metro Ginza Line)
Achieve advanced
construction management
by deploying 3D model
simulation and VR.
Develop human resourcesthat can utilize CIM in civilengineering business.
Copyright(C) Tokyu Construction. All rights reserved.

November 2021
Started using the BIM model for facility
management with digitalization of
information covering areas fromconstruction to maintenance28

Appendix：Provision of three values（Decarbonization/Zero waste/
Disaster prevention and mitigation）・DX・Human resources
Disaster prevention
and mitigation

Human resources

Actions for disaster-prevention measures and renewalof aging infrastructure

Monitor the condition of building structuresin the event of earthquakes, etc.
“Dr. BC Push,” which incorporates abuilding protection system “4D-Doctor,”
won the top award in the advanced
technology and information andcommunications category at the 2021
Disaster Prevention and Epidemic
Prevention Products Awards

Infrastructure asset management
ISO 55000s certification
was obtained to promote
inspection andmaintenance services
centering on railroadrelated structures, our
specialty area, andinfrastructureContinue to share the new corporate vision,
VISION2030
Managers and employees were divided
into small groups of about five to holddialogue, with the aim of fostering
understanding and acceptance of the
newly formulated corporate vision for2030. We will continue with efforts tohave dialogue with all employees
An internal event for all employees
was held. Ken Shibusawa, the greatgreat-grandson of Eiichi Shibusawa
who built the origin of the Tokyu
Group, was invited to talk and hold apanel discussion with President Terada

We receive “Eruboshi” certification based on Act on
Promotion of Women’s Participation and Advancementin the Workplace.

Tunnel Full Cross-Section Inspection System
iTORELReal-time automatic detection of
concrete scaling and cracks inaging tunnels

Application for listing on the “Prime Market"
We apply for listing on the “Prime Market” segment of TSE
starting on April,2022.

Copyright(C) Tokyu Construction. All rights reserved.

29

[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.