FY2023
Financial Results Briefing

May 15, 2024
TOBU RAILWAY CO., LTD.

Table of Contents
Ⅰ. FY2023 Business Results

Ｐ０２

Ⅱ. FY2024 Plan

Ｐ１２

Ⅲ. Reflecting on the Medium-TermBusiness Plan

Ｐ２０

Ⅳ. Analysis of Business Environment

Ｐ２１

Ⅴ. Long-Term Management Vision

Ｐ２２

Ⅵ. Medium-Term Business Plan

Ｐ２５

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

1

Ⅰ．FY2023 Business Results
Subsidiaries

March
2023

Increase

Decrease

―
March
2024

Transportation

27

-

-

27

Leisure

16

-

1

15

Real Estate

3

-

-

3

Retail Distribution

8

-

-

8

Other

15

-

-

15

69

-

1

68

Total
Affiliates

March
2023

Increase

Decrease

March
2024

Transportation

1

-

-

1

Leisure

2

-

-

2

Real Estate

-

-

-

-

Retail Distribution

-

-

-

-

Other

-

-

-

-

3

-

-

3

Total

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

Subsidiaries・Affiliates
Notes

July,2023.
Decrease in liquidation conclusion

Tiramisu Holdings Co.,Ltd.

Notes

2

Ⅰ．FY2023 Business Results ―Unit: Millions of yen

FY2023Results

FY2022
Results

Consolidated statement of income

ChangeOperating revenues

635,964

614,751

21,213Operating profit

73,88356,68817,195

Ordinary profit

72,03354,815Extraordinary income

52,010Extraordinary losses

Notes
Transportation ＋19,145
Leisure-3,592
Real Estate＋2,060Retail Distribution ＋2,191
Other＋9,971
Transportation ＋10,489
Leisure-29
Real Estate＋2,551Retail Distribution ＋1,831
Other＋3,305

FY2023
Plan

Change632,000

3,964

70,0003,883

17,21767,500

4,533

8,735

43,275--56,195

18,39137,803--

Profit attributable to owners ofparent48,16429,17918,98445,0003,164

Ratio of operating profit to net
sales

11.6%

9.2%

2.4P

11.1%

0.5P

Operating profit ROA*

4.3%

3.3%

1.0P

-

-

ROE*

9.5%

6.3%

3.2P

-

-

Depreciation

52,91653,354-438

53,300-383

EBITDA

126,799

110,043

16,756

123,300

3,499*Operating income ROA = Consolidated operating income/{(Beginning total assets + Ending total assets)/2}*ROE = Profit attributable to owners of parent/{(Beginning equity + Ending equity)/2}*Plan figures are those from announcement on February 7, 2024.（P3～P11）

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

3

Ⅰ．FY2023 Business Results ―Segment Profit

FY2023Results

FY2022
Results

Operating revenues

208,335

189,189

19,145

207,600

735

Operating profit

29,87019,381

10,48930,100-230

Operating revenues

184,761

188,354-3,592

183,500

1,261

Operating profit

19,44019,470-29

18,1001,340

Operating revenues

62,97560,9152,060

61,300

1,675

Operating profit

16,232

13,681

2,551

14,900

1,332

Operating revenues

165,629

163,438

2,191

165,400

229

Operating profit

4,434

2,602

1,831

4,000

434

Operating revenues

91,873

81,902

9,971

86,3005,573

Operating profit

5,951

2,646

3,305

4,300

1,651

Operating revenues-77,610-69,048-8,562-72,100-5,510Operating profit-2,047-1,093-954-1,400-647

Operating revenues

635,964

614,751

21,213632,000

3,964

Operating profit

73,88356,68817,19570,000

3,883

Unit: Millions of yen

ChangeFY2023
Plan

ChangeTransportation

LeisureReal Estate

Retail Distribution

Other

Adjustment

Consolidated

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

4

Ⅰ．FY2023 Business Results ―Unit: Millions of yen

Current assets

FY2023Results

FY2022
Results

Consolidated balance sheet
Change168,953

206,090-37,137

1,535,110

1,532,105

3,005

1,704,063

1,738,195-34,132

Current liabilities

386,322459,439-73,116

Non-current liabilities

776,027

798,181-22,153

Total liabilities

1,162,350

1,257,620-95,270

Total net assets

541,713

480,575

61,138

1,704,063

1,738,195-34,132

31.4%

27.3%

4.1P

749,777

795,502-45,724

5.9

7.2

-1.3P

63,35355,018

8,335

Non-current assets
Total assets

Total liabilities and net
assetsEquity ratio
Interest-bearing debt
balance
Interest-bearing
debt/EBITDA multiple
Capital expenditures

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

Notes

Cash and deposits-37,807

Advances received-27,725

Retained earnings＋40,010

5

Ⅰ．FY2023 Business Results ―Unit: Millions of yen

FY2023Results

FY2022
Results

Consolidated statement of cash flows
ChangeNotes

Cash flows from operating activities

91,690101,115-9,425Decrease in trade payables-12,422

Cash flows from investing activities-61,625-52,711-8,913

Increase in Purchase of property, plant andequipment and intangible assets-25,671

Cash flows from financing activities-67,918-25,285-42,633

Increase in repayments of long-term borrowings-28,827-37,816

23,188-61,004

31,25869,074-37,816

Net increase in cash andcash equivalents
Cash and cash equivalents
at end of period

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

6

Ⅰ．FY2023 Business Results ―Transportation

FY2023Results

FY2022
Results

ChangeNotes

208,335

189,189

19,145

207,600

735

Railways156,602141,477

15,125

156,200

402

Other

51,73347,712

4,020

51,400333

29,87019,381

10,48930,100-230

Railways

26,39817,432

8,966

27,000

-602

Other

3,471

1,948

1,522

3,100

371

3.0%

2.0%

1.0P

-

-

Depreciation

31,546

31,286260

31,700-153

EBITDA

61,416

50,667

10,74961,800-383

Capital Expenditures

38,80333,891

4,912

42,300-3,497

Unit: Millions of yen

Operating revenues

Operating profit

Operating profit ROA

Tobu Railway Lines
Number of Passengers(Unit: 1 Million people)

Commuter
Passengers
Non-Commuter
Passengers（Limited Express）
Total

FY2023Results

FY2022
Results

FY2023
Plan

524

508

524

313

291

313

6

5

6

837

798

837

FY2023Plan

Bus and taxi ＋2,908
Freight＋1,102

Bus and taxi
Freight＋2,109-586

Tobu Railway Lines
Passenger Revenue(Unit: Millions of yen)Commuter
Passengers
Non-Commuter
Passengers（Limited Express）
Total

ChangeFY2023Results

FY2022
Results

FY2023
Plan

59,85655,32559,97981,04270,76580,683

6,320

4,727

6,182

140,898

126,090

140,662* Non-commuter passenger revenue includes limited express fee and seat reservation fees.

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

7

Ⅰ．FY2023 Business Results ―LeisureFY2023Results

FY2022
Results

184,761

188,354-3,592

183,500

1,261

Travel131,247

147,219-15,971

130,700

547

Hotel

27,701

20,086

7,615

27,400301

SKYTREE

15,192

10,8324,360

14,800392

Other10,618

10,215402

10,60018

19,44019,470-29

18,1001,340

Travel8,974

16,581-7,607

8,500

474

Hotel

3,159

-1,943

5,102

2,800

359

SKYTREE

6,109

3,748

2,360

5,600

509

Other

1,198

1,083

114

1,200

-2

Operating profit ROA

7.4%

7.6%

-0.2P

-

-

Depreciation

5,934

6,400

-465

5,900

34

EBITDA

25,37525,870-494

24,0001,375

Capital Expenditures

10,033

2,727

7,306

10,400-367

Unit: Millions of yen

Operating revenues

Operating profit

Number of visitors（Unit: 1 Million
people）

SKYTREE

FY2023Results

FY2022
Results

FY2023
Plan

447

286

443

ChangeFY2023
Plan

Notes

Amusement parks and tourism＋328
Sports＋156

Amusement parks and tourism＋72
Sports＋42

Main Hotels
OccupancyRate

FY2023Results

FY2022
Results

FY2023Plan

Main Hotels
Percentage of
foreignnationals

FY2023Results

FY2022
Results

CY Ginza

24.7%

60.0%

25.4%

CY Ginza

77.3%

48.1%

AC Ginza

84.0%

49.9%

83.6%

AC Ginza

73.1%

50.8%

Kinshicho 87.2%

69.4%

86.3%

Kinshicho 73.9%

35.1%

Narita

93.8%

80.4%

Narita

27.7%

81.2%

66.2%

※CY Ginza Closed for renovation from May 2023 to November 2023.

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

Change8

Ⅰ．FY2023 Business Results ―Real Estate

FY2023Results

FY2022
Results

62,97560,9152,060

61,300

1,675

Leasing

35,87536,044-168

34,8001,075

SKYTREE TOWN

12,611

11,025

1,585

12,300311

Subdivision

14,488

13,845643

14,200288

Operating profit

16,232

13,681

2,551

14,900

1,332

Leasing

8,331

8,318

12

7,600

731

SKYTREE TOWN

3,636

2,258

1,378

3,300

336

Subdivision

4,264

3,104

1,160

4,000

264

4.7%

4.0％

0.7P

-

-

Depreciation

10,298

10,251

46

10,400-101

EBITDA

26,531

23,933

2,598

25,3001,231

Capital Expenditures

9,707

13,778-4,0719,800-93

Unit: Millions of yen

Operating revenues

Operating profit ROA

Number of visitors（Unit: 1 Million people）

SKYTREE TOWN

ChangeFY2023
Plan

Notes

ChangeFY2023Results

FY2022
Results

FY2023
Plan

Number of Units Sold
Unit:1unit

FY2023Results

FY2022
Results

FY2023
Plan

3,716

3,088

3,686

Detached houses

42

40

35

Condominiums

410

552

409

Detached houses

26

27

22

Condominiums

313

297

313

Number of Units Sold
After Converting ShareAll rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

9

Ⅰ．FY2023 Business Results ―Retail Distribution

FY2023Results

FY2022
Results

Operating revenues

165,629

163,438

2,191

165,400

229

Department stores

58,082

56,767

1,314

58,100-18

Supermarket

72,76673,062-296

72,900

-134

Other

34,78033,6081,172

34,400

380

4,434

2,602

1,831

4,000

434

3,223

2,633

590

2,900

323

41

-839

881

100

-59

1,169

809

360

1,000

169

Operating profit ROA

3.4%

2.0％

1.4P

-

-

Depreciation

3,587

3,882

-294

3,600

-12

EBITDA

8,022

6,485

1,537

7,600

422

Capital Expenditures

3,549

3,421

128

4,100

-551

FY2023 Results
vs. Previous
Year

FY2023 Plan
vs. Previous
Year

Unit: Millions of yen

Operating profit
Department stores
Supermarket
Other

Change in Sales at
Major Department StoresIkebukuro

2.1%

2.0%

Funabashi

6.1%

5.0%

Utsunomiya

0.8%

1.8%

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

ChangeNotes

FY2023
Plan

Change10

Ⅰ．FY2023 Business Results ―Other

FY2023Results

FY2022
Results

Operating revenues

91,873

81,902

9,971

86,3005,573

Operating profit

5,951

2,646

3,305

4,300

1,651

Operating profit ROA

2.2%

1.0%

1.2P

-

-

Depreciation

1,548

1,533

14

1,700

-151

EBITDA

7,500

4,180

3,320

6,000

1,500

Capital Expenditures

1,258

1,199

59

1,200

58

Unit: Millions of yen

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

ChangeNotes

FY2023
Plan

Change11

Ⅱ．FY2024 Plan ―Unit: Millions of yen

FY2024
Plan

Consolidated statement of income
FY2023Results

ChangeOperating revenues

639,000

635,964＋3,036

Operating profit

62,00073,883-11,883

Ordinary profit

58,00072,033-14,033

Profit attributable toowners of parent

43,00048,164-5,164

Ratio of operating profit
to sales

9.7%

11.6%

-1.9P

Operating profit ROA*

3.6%

4.3%

-0.7P

ROE*

7.8%

9.5%

-1.7P

Notes

Transportation＋3,965
Leisure＋239
Real Estate-4,175Retail Distribution ＋4,271
Other-5,573
Transportation＋230
Leisure-5,740Real Estate-5,432Retail Distribution
＋266
Other
-2,151*Operating income ROA = Consolidated operating income/{(Beginning total assets + Ending total assets)/2}*ROE = Profit attributable to owners of parent/{(Beginning equity + Ending equity)/2}

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

12

Ⅱ．FY2024 Plan ―Segment Profit

Unit: Millions of yen

FY2024Plan

FY2023Results

ChangeOperating revenues

212,300

208,335

3,965

Operating profit

30,10029,870230

Operating revenues

185,000

184,761239

Operating profit

13,70019,440-5,740Operating revenues

58,80062,975-4,175

Operating profit

10,800

16,232-5,432

Operating revenues

169,900

165,629

4,271

Operating profit

4,700

4,434

266

Operating revenues

86,30091,873-5,573Operating profit

3,800

5,951

-2,151

Operating revenues-73,300-77,610

4,310

Operating profit-1,100-2,047947

Operating revenues

639,000

635,964

3,036

Operating profit

62,00073,883-11,883

Notes

Transportation

LeisureReal Estate

Retail Distribution

Other

Adjustment

Consolidated

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

13

Ⅱ．FY2024 Plan ―Consolidated Cash Flow Plan
FY2024Plan

FY2023Results

Change115,900

126,799-10,899

Operating profit

62,00073,883-11,883

Depreciation

53,90052,916983

Interest-bearing debt balance

774,000

749,777

24,222

Interest-bearing debt/EBITDA
multiple

6.7

5.9

0.8P

100,600

63,35337,247

Unit: Millions of yen

EBITDA

Capital Expenditures

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

Notes

14

Ⅱ．FY2024 Plan ―Transportation

FY2024Plan

FY2023Results

212,300

208,335

3,965

Railways

158,900

156,602

2,298

Other

53,40051,733

1,667

30,10029,870230

Railways

26,50026,398

102

Other

3,600

3,471

129

3.0%

3.0%

0.0P

Depreciation

31,90031,546353

EBITDA

62,00061,416

583

Capital Expenditures

47,80038,8038,997

FY2024Plan

FY2023Results

ChangeCommuter Passengers

525

524

1

Non-Commute Passengers

317

313

4

6

6

0

842

837

5

Unit: Millions of yen

Operating revenues

Operating profit

Operating profit ROA

Tobu Railway Lines Number ofPassengers(Unit: 1 Million people)（Limited Express）
Total

ChangeNotes

Bus and taxi ＋1,324
Freight＋334

Bus and taxi
Freight-144＋274

Tobu Railway Lines Passenger
Revenue(Unit: Millions of yen)

FY2024Plan

FY2023Results

ChangeCommuter Passengers

60,41659,856

560

Non-Commuter Passengers

82,934

81,042

1,892

6,801

6,320

481

143,351

140,898

2,453（Limited Express）

Total* Non-commuter passenger revenue includes limited express fee and seat reservation fees.

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

15

Ⅱ．FY2024 Plan ―LeisureFY2024Plan

FY2023Results

185,000

184,761239

Travel126,500

131,247-4,747Hotel

31,40027,701

3,699

SKYTREE

15,90015,192708

Other11,20010,618582

13,70019,440-5,740Travel

2,000

8,974

-6,974

Hotel

4,300

3,159

1,141

SKYTREE

6,100

6,109

-9

Other

1,300

1,198

102

Operating profit ROA

5.2%

7.4%

-2.3P

Depreciation

6,400

5,934

465

EBITDA

20,10025,375-5,275

Capital Expenditures

30,90010,033

20,867

Number of visitors（Unit: 1 Million people）

FY2024Plan

FY2023Results

ChangeUnit: Millions of yen

Operating revenues

Operating profit

SKYTREE

449

447

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

Change2

Notes

Amusement parks and tourism
Sports＋254＋241

Amusement parks and tourism
Sports＋41＋38

Main Hotels
Occupancy Rate

FY2024Plan

FY2023Results

ChangeCY Ginza

83.5%

24.7%

58.8P

AC Ginza

80.1%

84.0%

-3.9P

Kinshicho

83.6%

87.2%

-3.6P

Narita

83.0%

81.2%

1.8P

※CY Ginza Closed for renovation from May 2023 to November 2023.

16

Ⅱ．FY2024 Plan ―Real Estate

FY2024Plan

FY2023Results

58,80062,975-4,175

Leasing

37,10035,875

1,225

SKYTREE TOWN

12,40012,611-211

Subdivision

9,300

14,488-5,188Operating profit

10,800

16,232-5,432

Leasing

7,500

8,331

-831

SKYTREE TOWN

2,800

3,636

-836

500

4,264

-3,764

3.0%

4.7%

-1.6P

Depreciation

10,200

10,298-98

EBITDA

21,00026,531-5,531

Capital Expenditures

13,200

9,707

3,493

Unit: Millions of yen

Operating revenues

Subdivision
Operating profit ROA

Number of visitors（Unit: 1 Million people）

SKYTREE TOWN

ChangeFY2024Plan

FY2023Results

Change

3,702

3,716

-14

Notes

FY2024Plan

FY2023Results

ChangeDetached houses

56

42

14

Condominiums

465

410

55

Detached houses

32

26

6

Condominiums

207

313

-106

Number of Units Sold
Unit:1unit

Number of Units Sold After
Converting ShareAll rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

17

Ⅱ．FY2024 Plan ―Retail Distribution

FY2024Plan

FY2023Results

Operating revenues

169,900

165,629

4,271

Department stores

59,10058,082

1,018

Supermarket

75,00072,766

2,234

Other

35,80034,780

1,020

4,700

4,434

266

3,200

3,223

-23

Supermarket

700

41

659

Other

800

1,169

-369

Operating profit ROA

3.6%

3.4%

0.2P

Depreciation

3,700

3,587

112

EBITDA

8,400

8,022

377

Capital Expenditures

6,700

3,549

3,151

Unit: Millions of yen

Operating profit
Department stores

Change in Sales at
Major Department Stores

ChangeNotes

FY2024 Plan
vs. Previous Year

Ikebukuro

1.2％

Funabashi

1.1%

Utsunomiya

3.9%

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

18

Ⅱ．FY2024 Plan ―Other

FY2024Plan

FY2023Results

Operating revenues

86,30091,873-5,573Operating profit

3,800

5,951

-2,151

Operating profit ROA

1.3%

2.2%

-0.9P

Depreciation

1,700

1,548

151

EBITDA

5,500

7,500

-2,000Capital Expenditures

2,000

1,258

742

Unit: Millions of yen

All rights reserved. Copyright © TOBU RAILWAY CO.,LTD.

ChangeNotes

19

III. Reflecting on the Medium-Term Business Plan
Reflecting on the Medium-Term Business Plan
Period of business plan: FY2022-FY2024
Priority Strategies and Main Initiatives■ Business structure reform/Restructuring ofbusiness promotion system■ Expansion of profitability through a new businessmodel■ Expansion of revenue by promoting businesses
that address social issues as needs⇒ Labor savings in station operations, review of head
office division operations, etc.
⇒ Launch of new limited express SPACIA X
operations, etc.
⇒ Continuous development of local community, etc.

Results vs. targets
Item

TargetLowering fixed costs in Railway Businessas percentage of FY2019 revenue

Lower to around 70% by FY2024

Lowering of break-even point for Hotels

Lower by about 15% compared to pre-COVID-19
plan

Reduction of personnel at Tobu Railway
Head Office

Reduce personnel in existing businesses by 30%
compared to beginning of FY2021

Expansion of Group sales targeted bydigital marketing

Target sales of ¥40.0 billion

ResultAll achieved
by FY2023

Completed early (FY2023) with achievement of targets and changes in business environment
All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

20

IV. Analysis of Business Environment
Future direction based on changes in business environment
Changes in theexternal environment

Main impacts on Tobu Group
Description

Recovery/expansionof inbound demand

Increase inenvironmental
awareness

Development ofdigital technology

Negative effects

Diversification ofvaluesPositive effects

Population decline
Low birth rate andaging society■ Expansion of tourism and other businesses■ Utilization of automation technologies to eliminate
labor shortages■ Utilization of accumulated data in marketing■ Expansion of highly environmentally conscious
ethical demand■ Decrease in commutation demand throughdiversification of work styles■ Decrease in railway users and users of Groupfacilities along railway lines due to population
decline■ Decrease in value of physical stores due to spreadof EC■ Concerns about increased fuel and other costs due
to soaring resource prices

Future Business Direction Derived from Changes in the Environment
Capture robust tourism demand, including inbound, and transition to new
growth phase in anticipation of metropolitan society with declining population
All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

21

V. Long-Term Management Vision
Review of Long-Term Management Vision

Management
PolicyMajor changes in external environment→ Review of Tobu Group Vision for 10 years from now

Long-term Management
Concept

Management strategy-PolicyPriority strategy(growth strategy)
Further enhancementof shareholder returns

Medium-TermBusiness Plan
2024-2027“Evolving Society and Areas
along our Railway Lines by
andMaintaining Financial
Soundness
Management with awarenessof capital efficiency

Challenging pursuit of adapting to changing
business environment and needs
Co-creation of value through collaborationand partnership with stakeholders

Achievement of sustainablegrowthRealization of “A human-friendly society where people andcommunities continue to flourish together”
All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

22

V. Long-Term Management Vision
Management Strategies and Policies in Long-Term Management Vision

Management strategies and policies to achieve
Long-Term Management Vision-Three policies anticipating the next decade-1

Increase in percentage of non-railway businesses in operating profit stage
Positioning tourism business and development (town development) as growth areas and making priority
investments to strengthen non-railway businesses, thereby developing businesses that will contribute tomedium- to long-term revenue and profit growth and expanding business domains

2

Strengthening profitability by capturing tourism demand
Maximize profits by capturing tourism demand, including inbound and diversified domestic travel demandby strengthening business bases, building services, branding, and disseminating information throughout
the entire Tobu Group3

Establishing sustainable business management structure
Establish a sustainable management structure by addressing declining domestic population andworkforce, reducing environmental impact, and strengthening human capital

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

23

V. Long-Term Management Vision
Profit portfolio reform for long-term profit growth

Road map based on management strategies and policies
Achievement of Long-Term Management Vision
Medium-Term Business Plan
2024-2027
Planting seeds for growth businesses

Achieve sustainable growth while flexibly reviewing strategies
based on changes in business environment

Looking ahead 10 years andbeyond and promoting

hotel development,
Operating profit of¥62.0 billion
Nonrailway¥35.5
billionredevelopment along railway lines,
promotion of sustainable structuralreform, etc.

Nonrailway¥50.0
billionRailways¥26.5
billionRailways¥30.0
billion

FY 2024

FY 2033

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

24

VI. Medium-Term Business Plan
Positioning of Medium-Term Business Plan and Priority Strategies
Positioning of Medium-Term Business Plan (FY2024-FY2027)
Promote development of businesses that will contribute to medium- to long-term revenue and profit growth, including the Ikebukuro
Station West Exit redevelopment plan
Develop group-wide businesses that capture inbound demand, establish a revenue base, and develop new businesses

Priority strategies■Establishment of businesses to drive growth
Develop growth businesses to strengthen profitability in the medium to long term with the tourism business, including hotels
and SKYTREE for which market growth driven by inbound tourism is expected, and development business (town development)
as the core businesses■Ongoing strengthening of business foundation (along railway)
Improve profitability and productivity by actively utilizing digital technology to create Group synergy and differentiate from othercompanies, thereby achieving sustainable development along the railway■Development of new businesses to expand domain
Explore business fields beyond the realm of existing businesses and strive to establish new revenue streams for the next 10
years

Investment amounts contributing to priority strategies during period of Medium-Term Business Plan*

Non-railway businesses Approx. ¥180.0 billion(Approx. ¥115.0 billion for development, ¥62.0 billion for tourism,and ¥4.0 billion for digital technology)

Railway businesses Approx. ¥90.0 billion(Approx. ¥10.0 billion for digital technology and ¥80.0 billion forstrengthening the business foundation)

Approx. ¥270.0 billion(Approx. 60% of total amount)* Capital expenditures + purchase of land and buildings for sale in lots

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

25

VI. Medium-Term Business Plan
(Establishment of Businesses to Drive Growth)
Maximization of captured tourism demand, including inboundTobu Group inbound strategy

Establish a brand of tourist attractions along the railway line by creatingGroup synergy, and establish a revenue base by accelerating newinvestments centered on the hotel business.
ー Strategy 1 ーー Strategy 2 ーExpansion of business throughacceleration of new investments

Promote upselling withhigh added value

Expand investments, primarily in

Improve profitability

hotel businessby improving experience value

ー Strategy 3 ーMaximization of Group inboundrevenue/profits
Inbound revenue of ¥24.0 billion(FY2027 target)

Promotion of cross-selling throughgeneration of Group synergy
Strengthengroup-wide initiatives

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

ー Strategy 4 ーIncrease percentage of repeat
business by establishing railway
tourist attraction brand
Acquire repeat businessthrough differentiation withcompeting tourist attractions

26

VI. Medium-Term Business Plan
(Establishment of Businesses to Drive Growth)
Maximization of captured tourism demand in hotel business
Inbound demand
Recovery of outing demand

Capture tourism demand by developing
new hotels and expand revenue
Maintain operating margin of 10%

Promote investment of at least ¥45.0 billion overfour years to open new hotels starting in 2028
Promotion of networking between Group hotels■Acceleration of investment for opening hotels in FY2028 and later

Promotion of new hotel development in Ginza, Yaesu, Osaka, etc.
■Promotion of renovation of existing hotels▲Courtyard by Marriott Tokyo Ginza HotelAll rights reserved. Copyright © TOBU RAILWAY CO., LTD.

27

VI. Medium-Term Business Plan
(Establishment of Businesses to Drive Growth)
Maximization of value at international eco resort Nikko

Promotion of “international eco resort” branding
Aim to increase area revenue by strengthening customer attraction andpromoting use of Group facilities through enhancement of tourist experienceand enhancement of area value through regional collaboration
Enhancement of tourist experience
Enhancement of inboundtourist attraction
Increase in number of new limited express
SPACIA X

Enhancement of area value throughregional collaboration

Enhancement of tourist
experience
Renewal of Akechidaira Ropeway

Promotion of public transportation use inconjunction with Nikko City’s ordinance to realize
a zero-carbon city through regional circulation

Enhancement oftransportation capacity andview experience

Capturing of robust demand and creation of various
products

Updating of NIKKO MaaS
Launch of inbound ticket sales (spring 2025)
Aiming to sell 100,000 tickets (FY2027)

Consideration of Nikko KANAYA Hotelrenovation

Promotion of traffic alleviation through enhanced
NIKKO MaaS sales promotions

Akechidaira Ropeway▶

Enhancement of outdoor services
Opening of glamping andother facilities to takeadvantage of pristine
wilderness

Aiming to enhance attraction of wealthy customers▲Lake Chuzenji▲Nikko KANAYA HotelAll rights reserved. Copyright © TOBU RAILWAY CO., LTD.

Automatic operation of Oku-Nikko low-pollutionbus
Promotion of verification testing to achieve Level 4
automatic operation in FY2025 or later

Improvement of bus and pleasure boat
services▲SPACIA X

Enhancement of sustainability throughincreased progressiveness andenvironmental awarenessConsideration of strengthening Chuzenji
bus terminal functions
Utilization as base of tourism for Oku-Nikko

Improved convenience of movement within area28

VI. Medium-Term Business Plan
(Establishment of Businesses to Drive Growth)
Conversion of core facilities along railway into regional terminals based on railway network
Promote town development where people and communities shine while coordinating
between various facilities■Promotion of elevation, roadmaintenance, etc.
Cooperation with unique shopping
districts■International city of artsand culture

Tobu Tojo Line area

・Coordination with Kami-Itabashi Station South
Exit redevelopment
・Coordination with construction of continuous
overhead crossing project near Oyama Station
・Shimoitabashi development plan

・Promotion of redevelopment of
Ikebukuro Station West Exit area

Ikebukuroarea

SKYTREE Line area

・Cooperation in consideration of Kitasenju
East Exit redevelopment

Kitasenju
area

・Coordination with redevelopment of
Wakoshi Station North Exit
・Asakadai Station building planning

Wako
Asaka
area

Itabashiarea■Utilization of regional resources
exclusive to downtown

AsakusaSKYTREE
area■Town where work, residence,commerce, and schools are
in close proximity, making
most of local resources■Enhancement of new
urban functions
Tourism x commerce・Consideration of development
around Kawagoeshi Station

Kawagoearea■Connections with cities and nature
Formation of next-generation communities
・Coordination with construction of continuous overheadcrossing project near Kasukabe Station
・Town development through industry-governmentacademia collaboration in Minamikurihashi

Kasukabe
Tobu Zoo
Minamikurihas
hi area

Nishiarai
-Soka
area

▲Minamikurihashi■Multi-generational, compact,
walkable town development■Improvement of accessibility andenhancement of two major terminals
・Launch of designated management work at
Sumida Park・Promotion of town development in anticipation ofcompletion of TOKYO SKYTREE Station
elevation

・Consideration of development around Nishiarai
Station・Town development through industry-governmentacademia collaboration in Dokkyodaigakumae
area■Town development
befitting of location around
prefectural office
・Consideration of development
around Tobu Utsunomiya Station

Utsunomiya
area▲Dokkyodaigakumae (illustration)

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

29

VI. Medium-Term Business Plan
(Establishment of Businesses to Drive Growth)
Acceleration of redevelopment of Ikebukuro Station West Exit area
■Begin procedures ahead of urban planning decision in FY2024

Start of construction

FY2024Rights transfer plan
approval

Project plan approval
Union establishment
approval

Urban planning
decision■Initiatives in development of Ikebukuro Station
West Exit area

Urban planningproposal

In March 2024, Tokyo Metropolitan Urban Revitalization
Subcommittee, established under the Council on National StrategicSpecial Zones Cabinet Office, convened and began urban planning
procedures for the Plan

Business schedule planning

FY2027

Establishment of atrium space as a traffic node to guide people from station to town
Creation of plaza space above the Tobu Tojo Line tracks as center for art and culture activities
Conversion of Ikebukuro Station from current 3-platform/3-track to 3-platform/4-track layout andestablishment of high-quality station space

Atrium space

Ikebukuro Station on Tobu Tojo Line

▲Illustration of building inside our project area

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

▲Atrium space30VI. Medium-Term Business Plan
(Establishment of Businesses to Drive Growth)Establishment of area between Asakusa and SKYTREE as No. 1 hub in east area of Tokyo
Main initiatives
since FY2020

Futureplan

・Establishment of new east-west axis (Sumida River Walk and Tokyo Mizumachi) on line connecting Sensoji Temple andTOKYO SKYTREE TOWN
・Opening of Asakusa Tobu Hotel・Taito Ward establishes Asakusa Area Town Development Vision Formulation Committee
・Completion of Sumida Park phase 2 development and launch of designated management work
・Completion of continuous overhead crossing project near TOKYO SKYTREE Station completed and launch of full-scale town
development around station in cooperation with local government

Establishment as No. 1 hub in east area of Tokyo
Designated management work at Sumida Park (2025-)

Asakusa area
(Sensoji Temple)
Establishment of
Asakusa Area Town
Development Vision
Formulation
Committee (2022-)

Town development nearstation in collaboration
with government（Creation of urban area
resistant to disasters）

Sumida Park development

Asakusa
StationRailway elevation and development
under elevated railway
TOKYO SKYTREE Station

Development ofKitajukken River area
through public-private
collaboration

Asakusa Tobu Hotel

SKYTREE area

Redevelopment
utilizing companyowned land
Oshiage
StationRiver Walk

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

Mizumachi

Redevelopment
utilizing companyowned land31VI. Medium-Term Business Plan
(Establishment of Businesses to Drive Growth)
Enhancement of co-creation initiatives inside and outside Tobu Group

Maximization of Group revenue and profits through creation of Groupsynergy and strengthening of external collaboration
Co-creation inside and outside Tobu Group
Coordinationand collaboration
within Group

External companies andmunicipalities with technologies
and expertise not available
within Groupー Enhanced participation in PPP/PFI ー

ー Promote co-creation inside and outside Group ー

Promotion of project participation by combining groupcompany strengths

Enhancement of external collaboration utilizing groupcompany assets and knowledge

Sumida Park designated manager services (beginning in 2025)

Glamping business (launching in FY2024)

Operated by three companies: TOBU RAILWAY CO., LTD.(overall
supervision), Tobu Ryokuchi Co., Ltd. (park operations and tree/plant
management), and Tobu Building Management Co., Ltd. ( facility and parking

TOBU RAILWAY CO., LTD. and TOBU TOP TOURS (travel industry
expertise and sales channels), TOBU CONSTRUCTION Co., Ltd.
(utilization of idle land), and Nishigaki Co., Ltd. (project know-how)

lot management)

Improve value
along railway
by participating
in projects▲Illustration of Sumida Park utilization

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

▲ Glamping facility (Nikko City/illustration)▲VILLA facility (Nasu/illustration)

32

VI. Medium-Term Business Plan
(Ongoing Strengthening of Business Foundation (Along Railway))
Promotion of residential and commercial development aimed at expanding and establishing population inflow

Full of comfort and quality of life
Achieve improved attractiveness of railway line by creating town like only we can
Improved convenience ofstations open to the town

Residential development
utilizing regional
characteristics

Increase resident population

Promotion of development underelevated railway (Koshigaya,
Takenotsuka, etc.)

Commercial
development

Residential
development

Development of rental
condominiums targeting
younger generation(Soka, Sakado, etc.)

Unitedpromotion▲Store under elevated railway at Takenotsuka(perspective drawing)

Enhancement of intangible
elements of living comfort

Enhancement of point
services according to lifestyle
・TOBU POINT child raising support
program(Waived fares for children, etc.)

・Enhancement of points program incollaboration with municipalities

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

Regional revitalization
through industry-governmentacademia collaboration
Creation of connections with local
residents after signingcollaboration agreements with
Soka City, etc.

▲Minori Terrace Soka

Lot development utilizing
suburban advantages (detachedhouses in Dokkyodaigakumae)

Promotion of detached housereclamation project aiming forrevitalization and coexistence
Reclaiming detachedhouses for sale in Noda
City, Chiba, to create
new town and lifestyle▲Detached housereclamation project(Perspective drawing)

33

VI. Medium-Term Business Plan
(Ongoing Strengthening of Business Foundation (Along Railway))
Improvement of transportation services

Realization of highly competitive railway services chosen by customers
Improved convenience and comfort

Higher unit prices andcreation of demand■Promotion of continuous overhead crossing
project and elevation of station building■Stimulation of limited express demandthrough AI demand forecasting

Promote projects at TOKYO SKYTREE, Kasukabe,etc., to improve safety and accessibility, as well as
to increase attractiveness of entire area byenhancing commercial facilities, etc.

Increase number of limited express trains andset fares flexibly to stimulate demand andincrease revenues (to be launched gradually
starting in FY2024) based on AI demand
forecasting that incorporates seasonal waves
and other factors▲In between TOKYO SKYTREE Station■Promotion of platform barrier installation
Improve customer convenience and comfort, such as decreasingtransportation disruptions, by installing platform barriers
Number of stations equippedwith platform gates(plan)

Will install ataround 100 stationsin the future■Promotion of review aligned with construction of newtransportation network in conjunction with Yurakucho
Subway Line extension (between Toyosu and Sumiyoshi)
Improved access from our lines by opening new ones
Consideration of railway value improvement measures
to seize opportunities

OshiageSumiyoshi
58
stations

21
stations

FY2023 end

SKYTREE Line

Improved access from our lines

Approx. 3x(During period of thismedium-term plan)▲SPACIA X
Cockpit suite

Coastalarea

Tozai Line

Yurakucho LineFY2024FY2025

FY2026FY2027

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

ToyochoToyosu34

VI. Medium-Term Business Plan
(Ongoing Strengthening of Business Foundation (Along Railway))
Utilizing digital technology to establish sustainable business management structure

Realization of sustainable transportation services
Promote three pillars to achieve operating structure that anticipates severe
population decline and labor shortages while improving safety and services

1

Expansion of one-man
operations

Current percentage ofone-man operations(Based on railway line length)

Approx. 60%

2Realization of automatic
driving trains and buses■Automatic railway operations
Aim to verify and launch
operation on Daishi Line
(FY2028 or later)▲Daishi LineTOBU SKYTREE Line
Expansion to local lines

One-man operations between
Kitasenju and Kitakoshigaya(Planned for end of FY2025)

Consider one-man operation forother major routes, aiming tobring it to all routes in the future

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

■Level 4 automated operation ofvarious bus routes
Roll out demonstration
Experiments conducted in
Oku-Nikko, Kashiwa, andWako City to other lines▲Automatic operation
EV busAim for full-scale operation of
automatic driving technology
beyond demonstration
experiments

3

Improvement of equipment
and inspection efficiency
through promotion of DX■Introduction of QR codeboarding passes
Switch from magnetic to QR
boarding passes to improveequipment maintainability andpromote ticket digitalization(Around end of FY2026)■Introduction of facility monitoring
systems
Improve efficiency of current visualchecks by installing inspection andmeasuring equipment and cameras on
trains and increase frequency to further
improve safety (around FY2027)

Continuously promote laborsavings, safety improvement,
and cost reductions utilizing
digital technology

35VI. Medium-Term Business Plan
(Ongoing Strengthening of Business Foundation (Along Railway))
Utilization of digital technology in aim of expanding revenue through marketing

Promotion of one ID and realization of sophisticated digital marketingー Further promote expansion of Group revenue and profits utilizing data ーIssuance of new TOBU Card
(Around spring 2025)■Transportation, shopping, and points, allon a smartphone

Maximize use of digital customer contact
points to achieve individualized
approach to customers
Swiftdecisionsusing BI

AI-basedcustomeranalysis

Expansion of one ID data

centered on TOBU POINT■Issue gold cards and other premium cards■Further expand accumulated data

Integrate limited express ticketless
service with TOBU POINT (FY2024)■Expand membership base to app
members■Allow purchases from same site
regardless of membership status

Unify member IDS for groupcompany EC sites (FY2025 or later)■Aim to improve convenience byintegrating various services that use
separate IDs, such as travel anddepartment stores

Expand contents on TOBU MALL
■Increase number of products, such as
digital tickets, to enhance services

Capture all data related to lifestyle services, whether
real or virtual, at individual customer level
All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

Target of FY2027

36

VI. Medium-Term Business Plan
(Development of New Businesses with View to Expanding Business Domain)
Development of digital identity platform business utilizing biometrics

Pursuit of new businesses without regard to existing framework or area
ーCreate new businesses and establish future revenue streamsー
Creation of model cases utilizing

Utilization of highly accurate

business domains and assets acrossand secure biometricmultiple industries

authentication

Tobu/Hitachi
Receive usage
feesFree to users¥
Provide new authentication/payment
system as platform

Merchant

Provide services utilizing platform features

Users

Aim to expand introduction nationwide and increase fee revenue
All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

37

VI. Medium-Term Business Plan
Reduce environmental impact by solving social issues and acquiring economic value
Basic policy on reducing environmental impact
Maximize value creation through initiatives involving solving social issues and creating
economic value as company

FY2030 Group target for reduction of environmental impact
Oku-Nikko area
Carbon neutrality

CO2 emissions-30% (compared to FY2022)

Establishment of international eco resort
Nikko and strengthening of customer
attraction by realizing local production ofenergy for local consumption

Long-term reduction of energy costs
through planned equipment and energy
substitution

Installation of solar
power generationequipment

Reuse of waste
cooking oil

Utilization of hot
spring heat

Expanded
installation of power
regeneration
inverter equipment

Promotion of LED
lighting

Optimization of
number ofowned vehicles

Expanded
introduction to newrolling stock andstation lighting

Promotion of 5-cartrains on URBANPARK Linepower regeneration inverter equipment

Utilization inlighting, airconditioning, etc.
regenerative electric power

StationRegenerative braking

Utilization aselectric power forGroup facilities

Operation of bio
fuel buses

Utilization inheating for hotels,etc.

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

Reuse in electric
power for station
facilities, etc.

38VI. Medium-Term Business Plan
Initiatives to strengthen human capitalー Long-Term Management Vision: Management Strategies and Policies ー
1

Increase in percentage of
non-railway businesses
in operating profit stage

2

Strengthening profitability
by capturing tourism
demand3

Establishing sustainablebusiness management
structure[Strengthening of human capital]
Acquire diverse human resources to realize growth and acceleration of each business andcreate environment where they can reach their potential and play an active role in achieving
our Long-Term Management Vision
Four policies related to human capital
Acquisition of diverse humanresources

Development of humanresources that contribute tosustainable growth

Retention of humanresources andachievement of potential

Improved employee
productivity through healthand productivity management■Expansion of hiring channels(Alumni, experienced workers, etc.)■Establishment of sustainable wage
structure■Utilization of human resources frominside and outside of Group■Education and training that
promotes independence■Enhancement of awareness-raisingand education■Expansion of educational programsfor common group issues, etc.

■Review of promotion, raise, andevaluation system■Addressing diverse work styles andcreating accommodating culture■Promotion of career management■Promotion of pursuit of new
businesses, etc.

■Proactive roll-out of measures forhealth maintenance and promotion■Implementation of measures toimprove lifestyle of young people,
etc.

Improve employee engagement and productivity simultaneously

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

39

VI. Medium-Term Business Plan
Management indicators and assumptions to be mindful of
Focus on improving profit levels by realizing growth strategy and controlling assets and liabilities with awareness of capital
cost while promoting shareholder return balanced with growth investment and financial soundness
Management
indicators

Description

FY2027
assumption

Profitability

Seek to expand non-railway business profits by such means as capturing growthmarkets centered on tourism based on changes in business environment

Operating profit¥74.0 billion

Financialsoundness

Promote investment in further growth while controlling interest-bearing debt in
anticipation of large-scale investments in the redevelopment of Ikebukuro Station
West Exit.

Interest-bearing
debt/EBITDA multiple
6X levelManagement
indicators

Description

Assumptions
during period

Shareholder
returnEnhance shareholder return by flexibly combining dividends and share buybacks
while taking into account the balance between growth investment and financial
soundness as well as future performance trends.

Total return ratio
At least 30%

Managementwithawareness ofcapital cost

In the final year of the plan, we will raise the level of operating profit to that of
FY2023, which was a record high, and control assets and liabilities with anawareness of capital cost by allocating funds from asset sales (including crossshareholdings) to growth investment and shareholder returns.

ROE
Approx. 8%

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

40

VI. Medium-Term Business Plan
Fund procurement and use
Allocate operating cash flow and funds raised through new procurement and asset sales in a balanced manner to capital
expenditures and shareholder returns to increase profits in non-railway businesses while ensuring financial soundness.

Fund procurement●Fund procurement withconsideration of financial
soundness
Procure funds withconsideration of financial
soundness, including asset
sales (e.g., crossshareholdings)

New procurement,
asset sales, etc.

Use of funds
Investment ofprocured funds

Railway business
Capital expenditures
Approx. ¥190.0 billion●Active investment in nonrailway businesses●Expansion of operating
cash flows
Expansion of operating cash
flows by capturing robust
demand in tourism sector, etc.

Investment in
non-railway
businesses
Capitalexpenditures*
Approx.
¥240.0 billion

Consolidated
cumulative total(4 years)
Operating cash flows
Approx. ¥410.0 billion

Expansion of
profits throughinvestment in
non-railway
businesses, etc.

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

Shareholder
return, etc.

Expand scale of investment intourism business anddevelopment projects* Includes approx. ¥50.0 billion
purchase of land and buildings forsale in lots

41

Important Notes Concerning This Document
The Company’s profit plan and other goals set forth in this document are based on
projections of industry trends related to the business of the Company and Group
companies and other such factors that impact business results, including the
economy in Japan and other countries, which are made based on the information
currently available to the Company.
As such, the reader is asked to note that actual business results may differ from theforecasts within this document due to changes in the business environment andother such factors.

The facility names appearing in this document are registered trademarks of TOBU RAILWAY CO., LTD. and TOBU TOWER SKYTREE Co., Ltd.

All rights reserved. Copyright © TOBU RAILWAY CO., LTD.

42