*** The original disclosure in Japanese was released on May 11, 2022 at 15:00 (GMT+9) ***May 11, 2022

Company:
Representative:
Inquiries:

Tokyu Fudosan Holdings Corporation
Hironori Nishikawa, President & CEO(Code No. 3289, TSE Prime)
Hiroaki Hoshino, Operating Officer

Formulation of “Medium-Term Management Plan 2025”

Tokyu Fudosan Holdings Corporation (the " Group ") hereby announces that it has formulated its
medium-term management plan with fiscal 2025 as the target year.
1. Background of Formulation of Medium-Term Management Plan
Having formulated its “GROUP VISION 2030” long-term vision and its “Long-term management policy”
in May 2021, the Group aims to “realize a future where everyone can be themselves and shine vigorously”
under its slogan of “WE ARE GREEN.”
The Group has positioned this plan as the “restructuring phase” under its Long-term management policy.
In line with the group policies and business policy laid out in that Long-term management policy, it will
promote the power to earn and improved efficiency with a view to resumed growth in the wake of COVID19 and aim to realize its ideal vision as well as to build a solid and distinctive business portfolio.

2. Overview of Medium-Term Management Plan 2025
The Group will endeavor to create distinctive value through “Environmental Management” and “DigitalTransformation (DX),” two group policies laid out in the Long-Term Management Policy. The Asset-utilizing
business (Urban Development/Strategic Investment) is promoting “increased asset efficiency throughthe efficient investment of funds and co-creation-based development.” Likewise, the Human capitalutilizing business (Property Management & Operation/Real Estate Agents) is promoting “improvedproductivity through a departure from labor-intensive methods and the effective use of intellectual assets.”
As they do so, those businesses will proceed to establish new revenue models by connecting groupservices through DX, expand business opportunities with the environment as their starting point, andtransform the groupʼs characteristics into its strengths.

[Environmental Management]
The Group will aim to expand business opportunities with the environment as our starting point
through initiatives geared towards a decarbonized society, a recycling-oriented society, andbiodiversity conservation.
Achievement of RE100, introduction of internal carbon pricing (ICP),◦ Decarbonized society
etc.
Businesses based on coexistence between the community and the◦ Recycling-oriented society
environment, etc.
Urban tree-plantation and long-term preservation and management,◦ Biodiversity conservation
etc.
〈Target indicators for environmental management〉
・CO2 emission reduction targets
Achievement of SBT target of 1.5℃ and CO2 emission reductions of 46.2%(versus fiscal 2019) by 2030
Scope 1 & 2

Achievement of CO2 emission reductions of 50% or more (versus fiscal(The group)2019) by 2030

Scope 3 *1・Cooperative endeavors with partners (construction companies, etc.)(Supply chain)

・Provision of decarbonized value to customers*1. The subjects of reduction targets under the Companyʼs SBT certification are categories 1, 2 & 11

・Initiatives aimed at realization
RE100Achieve in 2022 (Tokyu Land Corporation)

ZEB/ZEH level *2

FY 2025: Approx. 50％

FY 2030: 100％

Acquisition ofenvironmental
certifications *3
Introduction of ICP

FY 2025: Approx. 70％

FY 2030: 100％

FY 2023: Application to management decisions*2. Percentage of condominiums, offices and other facilities of Tokyu Land Corporation with a building
performance equivalent to or greater than ZEB/ZEH Oriented (construction start basis)*3. Large non-residential properties held (with a floor space of 10,000m2 or more) are subject tocertification. Certain exceptions (joint businesses, etc.) are present.

[DX]
The Group will apply DX towards maximizing the value of the “assets” and “human capital” that
it holds and aim to establish a new revenue model.
◦Improvement of the cityʼs centripetal force through smart urbanization
Realizing smart cities based on advance CX models through comfortable urbanliving◦

Creating advanced service models through optimal integration of humans and digitaltechnologies
Rolling out services with high levels of value-added and endeavoring to create
new business models and maximize revenue sources〈Mechanisms to accelerate DX〉
Developing and securing
human capital
Strategic IT Infrastructure
Development

Establishing a DX function company/Conducting DX and IT human capitaldevelopment training
Establishing digital workplaces for creating value

Internal venture scheme“STEP” new business proposal system (since 2019)

Collaboration with tech

Enhancing work efficiency and improving CX with the use of advancedcompanies

technology

Organizational culture

Implementation of climate-fostering events (Venture management speeches,and work-style reforms

pitches, etc.)

Co-creation through CVC

Generating synergy with CVC, universities/overseas venture companies, etc.

[Strengthening of Management Base]The Group will steadily strengthen our management base to achieve GROUP VISION 2030.
◦◦◦

Financial capital strategy

Efficiency-minded profit growth based on an optimal financial
capital composition

Human capital andFostering an innovative organizational climate with a sense oforganizational climateunity

GovernanceEstablishing a fair, highly transparent governance framework

3. Target Indicators for FY2025
The Group will aim to achieve target indicators that integrate financial and non-financial data
based on the materialities.

*1. Tokyu Cosmos Members Club questionnaire*2. Scope 1 & 2 under SBT certification*3. Profit attributable to owners of parent

4. Capital Allocation
The Group will adequately control its balance sheet while maintaining/lowering its D/E ratio
largely through the promotion of capital efficiency-minded investment. Moreover, regarding thereturn of profit to shareholders, the Groupʼs policy is to expand EPS through growth reinvestment
and continue maintaining a dividend payout ratio of 30% or more as it moves forward.
[Unit: \ billion]
Cash flow

Investment plan*

CF from operating activities

470

CF from investing activities

570

CF from financing activities

100<Shareholder Returns Policy>
Dividend payout ratio 30% or more;

Gross investment
Asset utilization

2,200
2,000

Urban Development

1,330

Strategic Investment

670

Human capital-utilization
Tokyu FudosanHoldings Corporation

150
50

continuation and maintenance of stable

Amount recovered

1,630dividend payment

Net investment

570*Applies to five-year period between FY 2021 and FY 2025

Tokyu Fudosan Holdings Groupʼs “GROUP VISION 2030” long-term visionhttps://www.tokyu-fudosan-hd.co.jp/english/group-vision-2030/