TOBU RAILWAY CO., LTD.

2024

ANNUAL REPORT

Management Philosophy and Policy(1) Tobu Group Management Philosophy
The Tobu Group has set forth the concepts of “dedication,” “enterprising spirit” and “affinity,” as the corner stone for its
management.
Dedication: 		

The Tobu Group will contribute to materializing an affluent society based on the profound awareness that all of
its businesses are supported by society.
Enterprising spirit: The Tobu Group will keep taking up challenges with a pioneering spirit to pave the way to a new era throughconstant self-improvement without complacency.
Affinity: 		The Tobu Group will contribute to the evolution of society by promoting its business as well as the welfare of
its employees based on the concept of congeniality among people and harmony with the environment.
(2) Tobu Group Management Policy
The Tobu Group will operate diversified and composite businesses on the basis of safety and security, including “transportation,”“leisure,” “real estate” and “retail distribution” as a corporate group contributing to the development of the areas along its railway
lines through businesses that closely support customers’ daily lives.
We will provide innovative and inventive services of high quality based on the customer’s viewpoint, thereby aiming to create
attractive destinations full of energy along the Tobu lines, providing the residents with a comfortable lifestyle.
Tobu Group will fulfill its corporate social responsibility through achieving sustainable growth along with local communities,
as a corporate group that supports customers’ lives by promoting ecofriendly management while constantly generating profit
from its business operations.

Contents
Management Philosophy and Policy...................................1
Message from the President...............................................2
Medium-Term Business Plan..............................................4
Our Current Situation..........................................................6
Review of Operations.........................................................7
Financial Review (Consolidated)........................................11
Approach to Sustainability and Sustainability Initiatives.....12
Corporate Governance.....................................................21
Risks to which the Company’s Business is Subject...........23
Five-Year Summary..........................................................26
Consolidated Balance Sheet.............................................27
Consolidated Statements of Income andComprehensive Income................................................29
Consolidated Statement of Changes in Equity..................30
Consolidated Statement of Cash Flows............................32
Corporate Directory .........................................................33

Attention regarding forward-looking statements
The reader is advised that this report contains forward-looking
statements, including statements relating to the Company’s
future policies and strategies, and estimates of future businessdevelopment. As opposed to statements of historical fact,
these constitute estimates or projections made by theCompany’s management on the basis of facts known to themas of the time of writing, and actual results may therefore differ
substantially from such statements, due to a wide variety ofpossible risk factors. Page 14 contains a list of the principal
categories of risk to which the Company’s business operations
are subject.
ANNUAL REPORT 2024

1

Message from the President

The Group formulated the medium-term business plan in
fiscal 2022 as a measure to overcome the harsh businessenvironment caused by the outbreak of COVID-19. We
achieved all the indicators in the plan ahead of scheduleby fiscal 2023 mainly by promoting businesses which set
indicators (KPI) to evaluate cost control.
Inbound demand is recovering. Nevertheless, we cannot
expect growth through business development on the samelines as before in the business environment in the future. Thatis because of the predicted decline in population in the Tokyo
area from around 2030 in addition to the diversification ofwork styles and values and the increase in pace of changes
and uncertainty due to advances in digital technologies.
Therefore, we have ended our medium-term businessplan, whose final year was fiscal 2024, and reviewed ourLong-Term Management Vision that is our vision of where wewant to in 10 years for the sustainable growth of the Group.
At the same time, we have formulated the Medium-Term
Management Plan which outlines our initiatives over four
years based on that vision.
We advocate in our Long-Term Management Vision forevolving society and areas along our railway lines by taking
on challenges and engaging in cooperative creation. We
will achieve that through the challenging pursuit of adapting
to changing business environment and needs and co2

TOBU RAILWAY CO., LTD.

creation of value through collaboration and partnership withstakeholders both inside and outside the Group. Based on
this vision, we will aim to maintain and expand group-wide
profits.
We have established management strategies andpolicies for the next 10 years: increase in percentage of nonrailway businesses in operating profit stage, strengthening
profitability by capturing tourism demand and establishingsustainable business management structure. Under
these policies, we have set forth four priority strategies:
establishment of businesses to drive growth, ongoingstrengthening of business foundation (along railway),development of new businesses to expand domain, andreduction of environmental burden and strengthening of
human capital. Based on these strategies, we will aim topromote the development of businesses.
We will position the tourism business, including ourhotel and SKYTREE businesses for which market growth
driven by inbound tourism is expected, and the development
business (town development), for which there is room fordevelopment along railway, as our core businesses tocontribute to growth for “establishment of businesses to drive
growth.” We will prioritize allocating management resources
to those businesses to strengthen our medium- to long-term
profitability.
We will improve profitability and productivity by actively
utilizing digital technology while taking advantage of theGroup’s strengths in terms of our wide business areain the Tokyo metropolitan area and the diverse array ofbusinesses we are engaged in for “ongoing strengtheningof business foundation (along railway).” Together with this,we will create group synergies and differentiate ourselvesfrom other companies with the aim of achieving continuous
development of our business base along the railway.
It is predicted that the population will decline even in
the Tokyo area along railways in the medium- to long-term.
Therefore, we will explore new business fields beyond therealm of our existing businesses and aim to establish revenue
streams for the next 10 years for “development of new
businesses to expand domain.”
We see rising environmental awareness in recent times
as a good opportunity for “reduction of environmental burden
and strengthening of human capital.” Accordingly, we will
strengthen our efforts to decarbonize by establishing theInternational Eco resort Nikko to enhance branding andour ability to attract customers while cooperating with thelocal community with the Group’s assets in the Oku-Nikko

Message from the PresidentManagement
PolicyLong-term Management
Concept

Long-termManagement Vision
Management strategy-Policy-

Priority strategy(growth strategy)
Further enhancementof shareholder returns

Medium-TermBusiness Plan
2024-2027

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

New Long-Term Management Vision“Evolving Society and Areas
along our Railway Lines by Taking on Challenges
and Engaging in Cooperative Creation

Maintaining Financial
Soundness
Management with awarenessof capital efficiency

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

Achievement ofsustainable growth

Realization of “A human-friendly society where people andcommunities continue to flourish together”

area. We will work toward the target we have established of
reducing CO2 emissions in fiscal 2030 to 30% of the levelin fiscal 2022 on a group-wide basis. Furthermore, we will
strengthen human capital by acquiring human resources andcreating an environment where they can play an active role torealize our Long-Term Management Vision.
Moreover, we have set the four years from fiscal 2024 tofiscal 2027 as the period of our Medium-Term Management
Plan. We will proceed with efforts based on the priority
strategies we have set forth in our Long-Term Management
Vision. We will promote the development of businesses that
contribute medium- to long-term revenue and profit growth
to realize an expansion and an increase in the percentage
of non-railway businesses in the operating profit stage. In
addition, we will engage in businesses which capture therecovery of inbound demand on a group-wide basis toestablish a revenue base. At the same time, we will set thisas a period to sow the seeds to develop new businesses
with an eye toward expanding our business domains.
The Group has achieved sustainable development
together with society since our establishment in 1897. We
established dedication, enterprising spirit and affinity as ourcompany motto in 1969. We have now set this motto as
the Tobu Group Management Philosophy. The Tobu GroupManagement Policy aims to realize vibrant, easy-to-live andinviting areas along the Tobu railway lines with safety andpeace of mind at the core. Based on this policy, the Grouphas worked on solving social issues through its businessand has itself grown while playing a role in the sustainable
development of society.
While leveraging the characteristics and management
resources of our railway lines, we will continue to create
new value in the future by solving social issues andrealizing human friendliness in a society in which people
and communities shine together as we aim to become acorporate group that is indispensable to society.

Yutaka Tsuzuki
President and Representative Director
ANNUAL REPORT 2024

3

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 fromother companies, 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 yearsInvestment amounts contributing to priority
strategies during period of Medium-Term Business Plan*
Non railway businesses

180.0

Railway businesses

90.0

270.0

Approx.¥billion(Approx. ¥115.0 billion for development, ¥62.0 billion for
tourism, and ¥4.0 billion for digital technology)

Approx.¥billion(Approx. ¥10.0 billion for digital technology and¥80.0 billion for strengthening the business foundation)

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

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

4

Management indicators

Description

Profitability

Seek to expand non-railway business profits by such means
as capturing growth markets centered on tourism based onchanges in business environment

Financial soundness

Promote investment in further growth while controlling interestbearing debt in anticipation of large-scale investments in theredevelopment of Ikebukuro Station West Exit.

Management indicators

Description

Shareholder return

Enhance 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

Management withawareness of capitalcost

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

ROE Approx.

TOBU RAILWAY CO., LTD.

FY2027 assumption
Operating profit ¥74.0 billion

Interest bearing debt/EBITDA multiple

6X level

Assumptions during period

8％

30%

Medium-Term Business Plan
■ Establishment of Businesses to Drive Growth
Maximization of captured tourism demand in hotel business
Inbound demand

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

Recovery of outing demand

10%

45.0

Promote investment of at least ¥billion over four years
to open new hotels starting in 2028

Initiatives in development of Ikebukuro Station West Exit area
• 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 and establishment of highquality station space

Atrium space
Ikebukuro Station on Tobu Tojo Line

Illustration of building inside our project area

Atrium space■ Development of new businesses to expand domain
Development of digital identity platform business utilizing biometrics

Pursuit of new businesses without regard to existing framework or area
Create new businesses and establish future revenue streams
Creation of model cases
utilizing business domains
and assets across multiple
industries

Receiveusage fees

Tobu/Hitachi

Utilization of highly accurate
and secure biometricauthentication

Free 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
ANNUAL REPORT 2024

5

Our Current Situation
The Tobu Group consists of TOBU RAILWAY CO., LTD. and its subsidiaries and affiliates.
The core business of the parent company founded in 1897 is operating a network ofTransportation
private railway lines that extends across Tokyo, Chiba, Saitama, Tochigi, and Gunma
prefectures of the Kanto region.
The main lines, which originate in Asakusa, eastern Tokyo, extend to Saitama, Tochigi,
LeisureOther
TOBU
Gunma, and Chiba prefectures, including the trunk lines (the TOBU SKYTREE Line (IsesakiGroupLine), Nikko Line, and the TOBU URBAN PARK Line (Noda Line)) and branch lines. They
can be broadly divided into the TOBU SKYTREE Line (the southern portion of the Isesaki
RetailRealLine) and the TOBU URBAN PARK Line (Noda Line), which primarily serve commuters
Distribution
Estateand students, and the Nikko Line and northern portion of the Isesaki Line that primarily
serve tourists and businesses. The Tojo Line mainly carries commuters and students.
Development in areas along the line has been proceeding smoothly.
In addition to the main railway business, the Tobu Group engages in the development businesses outlined in the following
paragraphs.
In our leasing business, particularly in areas alongside our railway lines, the Group is leasing a large number of sites forsuch purposes as stores, office buildings, houses, and warehouses. In particular, in TOKYO SKYTREE TOWN this includes thecommercial facility TOKYO Solamachi® and the office facility TOKYO SKYTREE EAST TOWER®.
In addition, spaces inside our station buildings are leased or utilized for business purposes, and stations and railway cars
are used for advertising.
In our subdivision business, we are engaged in the sale and development of homes and land, and the independent and joint
construction and sale of condominium units.
In the leisure business, the parent company directly manages the Courtyard by Marriott Tokyo Ginza Hotel and the Tobu
Hotel Levant Tokyo in the center of Tokyo, and in developing its leisure business, the Company works in close corporation witheach of its member companies.

(Group Companies)
The transportation business consists of fixed-route and long-distance bus services, taxi services, freight trucking, and other services.
In addition to TOKYO SKYTREE™, we operate the Tobu Zoological Park and TOBU WORLD SQUARE. Group companies
manage enterprises in such fields as travel, city and resort hotels, inns, skiing facilities, golf courses, sports clubs, ropeways, andsightseeing vessels.
We are involved in real estate leasing, real estate brokerage, and the car parking lot and bicycle parking lot businesses.
There are Tobu department stores in Ikebukuro, Funabashi, Utsunomiya, Ohtawara and Tochigi, and we own TOBU STORE
CO., LTD., which operates a chain of supermarkets.
Other businesses include construction, building and facility management, construction materials supply, and heating supply
systems.

Basic Indicators
Number of Group Companies

Number of Employees
Transportation

Administration
Transportation

Other

20.8%

40.3%

Revenue from Operations

49.7%

1.3%
Other

Transportation

Other

12.9%

29.2%

16.0%
RetailDistribution

11.1%

RetailDistribution

72

11.6%

Group Companies
Real Estate

4.2%

RetailDistribution

Total

23.2%

18,384
employees

Leisure23.6%

Real Estate

1.8%

Total

713,575
millions of yen

Leisure19.6%

Leisure25.9%

Real Estate

8.8%*Figures above are before elimination of inter-company transactions.

6

TOBU RAILWAY CO., LTD.

Review of Operations
Transportation
Sales by Sector (¥ million)
215,427

2020

159,122173,264

189,189

208,335

2021

2022

2023

2024

In our railway operations, our top priority is ensuring safety,
peace of mind, and comfortable living, and we are promoting
various initiatives so that more customers will choose ourrailway lines.
In terms of sales, for the first time in 33 years, we
introduced a new SPACIA X limited express train in July
2023. It has been well received. Therefore, we increased thenumber of trains in operation from March 2024 to increase
opportunities to ride it and to attract more customers to the

New limited express train SPACIA X connecting Asakusa to Nikko-Kinugawa

SALES RATIOBY SEGMENT

29.2%

Nikko-Kinugawa area.
In terms of safety, we are earnestly taking various
measures to ensure the safety of transportation. We arepromoting elevation projects near Tokyo Skytree Station,
Takenotsuka Station, Kasukabe Station and other areas. In
addition to improving safety and accessibility, we are looking
to improve the appeal of the area overall by also upgrading
the commercial facilities. Moreover, we have started using
new buildings at Nodashi Station between Shimizu-koen andUmesato and at Nanasato Station due to the station being
elevated above the tracks.
At the same time, in order to build a system capable ofsecuring stable profits even in a harsh business environment,
we steadily implemented the previously formulated businessstructure reforms and reduced fixed costs.
In the bus and taxi business, the TOBU BUS Group
conducted a self-driving bus demonstration experimentin the Kashiwanoha, Wako and Oku-Nikko areas. We arehoping to contribute to solving transportation issues byrealizing unmanned self-driving in the future.
As a result of the above, the number of both commuter
passengers and non-commuter passengers increased dueto the recovery in use by commuting workers and students
and in use for leisure in our railway business. Furthermore,with the introduction of the railway station barrier-free faresystem and the start of operation of SPACIA X, overall,revenue from operations in the transportation business cameto ¥208,335 million (up 10.1% year on year) and operating
profit came to ¥29,870 million (up 54.1% year on year).
Transportation (31 firms)
Railway:
The Company; Jomo Electric Railway Co., Ltd.*Bus and taxi: ASAHI Motor Corporation*, TOBU BUS CO., LTD*
Freight:
TOBU TRANSPORTATION CO., LTD.*,TOBU DELIVERY CO., LTD.*
25 other firms

SPACIA X cockpit suite with the concept of a traveling suite

Notes: *Consolidated Subsidiary		TOBU RAILWAY CO., LTD. is counted multiple times in the above segment
breakdown.

ANNUAL REPORT 2024

7

Review of Operations
LeisureSales by Sector (¥ million)

72,072

39,055

2020

2021

188,354

184,761

2023

2024

108,3112022

Example of a renovated guest room
(Courtyard by Marriott Tokyo Ginza Hotel)

SALES RATIOBY SEGMENT

25.9%

In the SKYTREE business, we are looked to attract customers
by holding various events and strengthening PR activities for
inbound tourists at TOKYO SKYTREE®. We also renovatedand then reopened SYTREE SHOP on the 5F.
In the hotels business, we worked to increase occupancy
rates and room rates in our hotels in Tokyo by capturing
domestic travel demand and inbound demand. Furthermore,
we renovated the Courtyard by Marriot Tokyo Ginza Hoteland Nikko KANAYA Hotel and worked to capture even moreinbound demand.
In the travel business, TOBU TOP TOURS CO., LTD.
worked to capture travel business mainly focused on
educational trips and other forms of group travel in linewith the recovery in travel demand. Together with this, thecompany promoted the solutions business using digitaltechnology and took charge of providing support for local
tourism business to local governments. In this way, it strived
to sought to increase revenue by expanding business beyond
travel sales.
As a result of the above, revenue and sales increasedin the SKYTREE and hotel businesses. Nevertheless, we
suffered a decrease in contract revenue in the travel business.
Accordingly, overall, revenue from operations in the leisurebusiness came to ¥184,761 million (down 1.9% year on year)
and operating profit came to ¥19,440 million (down 0.2% year
on year).
Leisure (26 firms)

Nikko KANAYA Hotel (annex) reopened after its renovationas ANNEX ROYAL HOUSE

Amusement parks and tourism: Tobu Leisure Planning Co., Ltd.*Sports:Tobu Kogyo Co., Ltd.*
Travel:TOBU TOP TOURS CO., Ltd.*
Hotels:The Company; Tobu Hotel Management Co., LTD.*
SKYTREE business: TOBU TOWER SKYTREE Co., Ltd.*
20 other firms

Notes: *Consolidated Subsidiary		TOBU RAILWAY CO., LTD. is counted multiple times in the above segment
breakdown.

8

TOBU RAILWAY CO., LTD.

Review of Operations
Real Estate
Sales by Sector (¥ million)

67,912

2020

54,2282021

62,20360,91562,975

2022

2023

2024

EQUiA YATSUKA newly opened using space under the elevated railway

SALES RATIOBY SEGMENT

8.8%

In the TOKYO SKYTREE TOWN business, we held various
events throughout the year such as a Taiwan festival andwinter illuminations at TOKYO SKYTREE TOWN®. Thoseefforts allowed us to capture domestic and overseas tourism
demand. That meant we achieved record high annual sales.
In the real estate leasing business, we increased
revenue and improved convenience for our customers
by opening EQUiA Yatsuka and EQUiA Koshigaya andrenovating and then reopening VARIE 1 at Soka VARIE. In
addition, we opened Minori Terrace Soka in Soka. This is acomplex facility which combines a park and farm with rental
housing and stores renovated from employee housing inSoka. This meant we promoted urban development whichconnects people and communities.
In the real estate subdivision business, we sold theSolaie Shin-Kamagaya (Kamagaya) and Solaie Wakaba
Station Villa (Sakado) condominiums to increase the value
and resident population of along the railway.
As a result of the above, overall, revenue fromoperations in the real estate business came to ¥62,975
million (up 3.4% year on year) and operating profit cameto ¥16,232 million (up 18.7% year on year) by increasing
revenue in the SKYTREE business and by setting prices tomatch demand in the real estate subdivision business.
Real estate (4 firms)©TOKYO-SKYTREETOWNReal estate leasing:
The Company; TOBU REAL ESTATE CO., LTD.*
Real estate subdivision: The Company
SKYTREE TOWN: 	The Company; TOBU TOWN SOLAMACHI CO.,LTD.*
1 other firm

Seasonal event held at TOKYO SKYTREE TOWN
(Taiwan Festival in TOKYO SKYTREE TOWN® 2023)®

Notes: *Consolidated Subsidiary		TOBU RAILWAY CO., LTD. is counted multiple times in the above segment
breakdown.

ANNUAL REPORT 2024

9

Review of Operations
Retail Distribution
Sales by Sector (¥ million)
266,418

2020

SALES RATIOBY SEGMENT

216,2532021

136,640

163,438

165,629

2022

2023

2024

23.2%

In the department stores business, TOBU DEPARTMENT STORE CO., LTD. expanded its outdoor goods sales area as part of areorganization of highly profitable categories in its Ikebukuro store and strengthened the product lineup on its children’s floor tocapture next-generation customers. In addition, it implemented large-scale renovations of its foods floor at its Funabashi store to
realize a sales area which can meet a wide range of needs of customers in the community and along the railway. At the same time, it
improved convenience for its customers.
In the supermarkets business, TOBU STORE CO., LTD. opened Tobu Store Koshigaya in EQUiA Koshigaya. In addition, it worked
to increase revenue by focusing on the development and sale of its original products with high-added value to meet customer needs.
As a result of the above, overall, revenue from operations in the retail distribution business came to ¥165,629 million (up 1.3%
year on year) and operating profit came to ¥4,434 million (up 70.4% year on year) because cosmetics and women’s goods performed
well due to an increase in opportunities to go out in the department stores business.
Retail distribution (9 firms)
Department stores:	TOBU DEPARTMENT STORE CO., LTD.*, TOBU UTSUNOMIYA DEPARTMENT STORE CO., LTD.*
Supermarket:
TOBU STORE Co., Ltd.*
6 other firms

Other
In the construction business, TOBU CONSTRUCTION CO., LTD. completed work to construct a facility to support those withdisabilities for a social welfare corporation in Nikko. Meanwhile, Tobu Yachida Construction Co., Ltd. completed large-scale
repair work on a public facility in Sumida-ku.
In addition, management, and Tobu Building Management Co., Ltd. strove to increase revenue by accepting an order toengage in hotel cleaning operations in Minato-ku.
As a result of the above, overall, revenue from operations in other businesses came to ¥91,873 million (up 12.2% year onyear) and operating profit came to ¥5,951 million (up 124.9% year on year) due to an increase in revenue and improvement in
the cost ratio from an increase in completed construction work.
Other (16 firms)
Construction: TOBU CONSTRUCTION Co., Ltd.*, Tobu Yachida Construction Co., Ltd.*
Other businesses: Tobu Building Management Co., Ltd.*
13 other firms
Notes: *Consolidated Subsidiary

10

TOBU RAILWAY CO., LTD.

Financial Review (Consolidated)(1) Revenue from operations
There was a decrease in contracting revenue in the travel business. Nevertheless, revenue increased in the transportation
business and in the hotels and SKYTREE businesses in the leisure business thanks to a recovery in domestic and inboundtravel demand. In addition to this, each commercial facility experienced a recovery. That mean revenue from operations came to¥635,964 million (up 3.5% year on year).
(2) Operating profit
Personnel expenses increased due to the introduction of a stock benefit plan for employees. In addition, repair costs rose.
Nevertheless, revenue increased in each segment apart from the leisure business. Accordingly, operating profit came to ¥73,883
million (up 30.3% year on year).
(3) Ordinary income
Non-operating income came to ¥5,231 million (down 1.7% year on year) and non-operating expenses came to ¥7,081 million(down 1.6% year on year). Ordinary income came to ¥72,033 million (up 31.4% year on year).
(4) Net income attributable to owners of the parent company
Extraordinary income came to ¥52,010 million (up 495.4% year on year) due to an increase in proceeds from contribution for
construction in relation to an elevation project near Takenotsuka Station.
Extraordinary losses came to ¥56,195 million (up 205.6% year on year) due to an increase in the loss on reduction of noncurrent assets in relation to the above elevation project.
As a result of that, income before income taxes of ¥67,848 million was recorded (up 50.2% year on year). After the
deduction of income taxes, net income came to ¥48,398 million (up 66.0% year on year). After deducting loss attributable tonon-controlling interests, net income attributable to owners of the parent company came to ¥48,164 million (up 65.1% year
on year).

Operating Profit (Millions of yen)

Shareholders’ Equity Ratio (%)

80,00070,00073,88335

31.4

62,65330

56,68860,00028.1
26.4

50,000

26.8

27.3

25

40,00030,00024,73220

20,00010,000
0

15
2020

2021

-10,000-20,000-13,577

2022

2023

2024

2020

2021

2022

2023

2024

* Shareholders’ Equity Ratio equals net assets attributable
to shareholders’ as a percentage of total assets.

ANNUAL REPORT 2024

11

Approach to Sustainability and Sustainability Initiatives
The Group’s approach to sustainability and its sustainability initiatives are described below.
Note that forward-looking statements within this document are based on our judgment as of the time of publishing the
Securities Report (June 21, 2024).

(1) Governance and risk management related tosustainability in general
The Group’s business foundation is the areas along its
extensive railway network. We believe that achieving
sustainable development of society centered on railway lines
is, more than ever, the most important issue for the Group.
In the business environment surrounding the Group, weare faced with various social issues, including social changes
brought on by the COVID-19 pandemic, progression of the
low birth rate and aging society, and environmental problems
such as global warming and waste disposal. It is crucial that
we develop a new business model and solve these issues.
Since its establishment in 1897, the Group has worked on
solving social issues through its business and has itself grownwhile playing a role in the sustainable development of society.
While leveraging the characteristics and management
resources of our railway lines, we will continue to realize humanfriendliness in a society in which people and communities
shine together by solving social issues as we aim to become acorporate group that is indispensable to society.
Based on this approach, we have identified materiality(material issues) and established a process for creating
sustainable social development and enhancement ofcorporate value by solving these issues (value creation
process). The details are provided below.
Identified Material Issues(1) Continuous development of local community(2) Corporate governance contributing to corporate value
creation(3) Improvement of skills and capabilities of diverse employees(4) Reduction of environmental impact through further
improvement of environmental superiority(5) Ensuring of safety and reliability, the backbone of all theGroup’s businesses
Value Creation Process
We will create value for realization of human friendliness in asociety in which people and communities shine together.
The material issues we identify are deliberated at
the Management Meeting. They are also deliberated andevaluated by the Governance Committee, which is chaired byan independent outside director. The committee chair reports

12

TOBU RAILWAY CO., LTD.

to the Board of Directors, detailing the contribution of thesematerial issues to corporate governance.
The Governance Committee meets twice a year toreceive activity plans, activity reports, and recommendations
from the chairpersons of the Crisis Management Committee,
Compliance Committee, Information Security Committee,
Environmental Promotion Committee, and other committees
that contribute to sustainability and to deliberate and evaluate
them before reporting to the Board of Directors.

(2) Key sustainability items
The key sustainability items at the Group identified throughthe above governance and risk management are described
below.
• Climate change• Human capital / diversity• Information security• Compliance
The Group’s approach to sustainability and its sustainability
initiatives related to each item are described below.
(i) Climate change
1. Governance and Risk Management
The Tobu Group is further improving its high level ofenvironmental advantage, particularly in its railway business,to reduce environmental burden and climate change risks.
In addition, the Tobu Group promotes environmental
conservation activities, such as waste reduction, andinitiatives to reduce risks from natural disasters in all businessfields. In this way, it strives to help bring about a sustainable
society and strike a balance between corporate growth andsuch activities.
In order to promote these efforts, the Tobu Grouphas established an Environmental Promotion Committee.
The committee is chaired by the Director in charge of the
Corporate Planning Division and comprised of division Heads,
and Executive Officers in charge of departments and offices
concerned with environmental management, and General
Managers thereof. The committee discusses and evaluatesrisks and opportunities resulting from climate change(hereinafter “climate change risks, etc.”).
In the Governance Committee, comprised ofRepresentative Directors, Outside Directors and Audit &Approach to Sustainability and Sustainability Initiatives
Supervisory Board Members and chaired by an Outside
Director, the chairperson of the Environmental Promotion
Committee provides activity plans, activity reports andsuggestions concerning climate change risks, etc. Under
the Governance Committee, a governance system has
been established concerning initiatives to tackle climatechange risks, etc. in which the above details are deliberated,evaluated and reported to the Board of Directors.
The Tobu Group perceives initiatives concerning climatechange risks, etc. to be an important matter in its crisis
management and shares information on these initiatives with
the Risk Management Committee and has established asystem for their appropriate management.

2. Strategy(1) Scenario Analysis
The Tobu Group has conducted an analysis of the effects
of climate change on its railway business, which has
the greatest financial impact on its consolidated results.
From among the Shared Socioeconomic Pathways (SSP)

scenarios used in the field of climate change research,
provided by the National Institute for Environmental Studies,
we compared the SSP1 (sustainability; less than 2°C
warming scenario) and SSP3 (regional rivalry; 4°C warming
scenario) to analyze the risks and opportunities in eachsociety as well as the impact on revenue.

Shared Socioeconomic Pathways (SSP) Scenarios

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Approach to Sustainability and Sustainability Initiatives
For both SSP1 and SSP3, we classified the effects ofclimate change on our railway business as “physical risks”(such as destruction caused by flooding, heavy storms
and other abnormal weather) and “transition risks andopportunities” (such as strengthened regulations and newtechnologies resulting from the transition to a low carbon
economy, and market and reputation changes resulting fromchanges in consumer preferences and behaviors). Details on
how we conducted our analysis are provided below.

generation technologies, particularly existing measures
being implemented by the Tobu Group such as MaaS andautomated train operation experiments, to be opportunities.
In addition to the possibility of reducing costs related torailway operation and increasing operational efficiency, it has
been predicted that the maintenance of the environmental
advantage of railways will provide opportunities for increased
revenue, such as a shift to railways away from alternate formsof transportation, etc.

(2) Physical Risks
We analyzed the financial impact of flood risks resulting
from increased abnormal weather on our railway business’
facilities and equipment. For this analysis, we used a flood risk
assessment model*1 and a climate forecast database*2 toevaluate the extent of the physical impact flooding would haveon our individual railway business assets (station buildings,
tracks, electrical facilities, etc.). Based on past weather data,
we calculated the cost of damage which would be causedby the occurrence of a once-in-a-century-level disaster on allof our train lines. We also roughly calculated the impact onrevenue which would occur in the event a disaster resulted in
disruptions to transit operations.
As a result, with regard to the impact of flood risks on
our entire railway business, we found that for both SSP1
and SSP3, there would be a risk of the cost of damage
becoming greater than present, but the cost of damage
would be relatively less for SSP1. Accordingly, the Tobu Group
recognizes that realizing a sustainable society and keeping theincrease in temperature under 2°C is also important from theperspective of reducing the risk of flooding in the operation ofits businesses.
The Tobu Group is also engaging in measures to reduce
damage from natural disasters, including strengthening
facilities by reinforcing slopes and bridges and elevatingtransformer substations, etc., and formulating a vehicle
evacuation plan. Together with initiatives to reduce ourenvironmental burden, we will be working to reduce our risks
going forward.

(4) Impact on Revenue
As an element which should be taken into consideration in
addition to physical risks and transition risks, we analyzed
the impact of future demographic changes on railway
revenue. The anticipated demographic trends for Japan are adecreasing birthrate, and an aging and declining population.
However, in contrast with SSP1, a scenario in which society
provides an improved environment for child rearing, SSP3 is
expected to result in an even greater population decline due
to factors such as economic stagnation.
As a result, we found that between SSP1 and SSP3,
SSP3 would result in a significantly greater decline in therailway income in fiscal 2050. Accordingly, the Tobu Group
recognizes that realizing a sustainable society and keeping theincrease in temperature under 2°C is also important from theperspective of securing future revenue in the operation of its
businesses.
The Tobu Group will continue to aim for sustainablegrowth together with local communities and, based on theabove, believes it important to seek to realize SSP1 in theoperation of its businesses. Going forward, the Tobu Groupwill continue to promote a variety of initiatives concerning
climate change.
For more information about the risks and opportunities
extracted via the above scenario analysis as well as
assessments and measures for each, please see thereference material attached herewith.

(3) Transition Risks and Opportunities
In SSP1 there is a risk of energy and material procurement
costs increasing, and in turn of our financial burden
increasing, due to factors such as the introduction of a carbon
tax and strengthened regulations to promote decarbonization.
At the same time, The Tobu Group perceives the developmentof clean energy technologies and the growth of other next-

14

TOBU RAILWAY CO., LTD.

3. Indices and Targets
The Tobu Group perceives the reduction of its environmental
burden, through means such as further improving its
environmental advantage, as a key issue to resolve. The Tobu
Group expects to achieve a reduction of approximately 50%
reduction in CO2 emissions from its railway business by fiscal
2030 (compared with fiscal 2013). In order to do so, it is
implementing a variety of initiatives to reduce its environmental
burden, such as switching to energy-saving vehicles as well

Approach to Sustainability and Sustainability Initiatives

as the optimization of the number of vehicles in the Tobu
Group’s possession; switching to LED lighting in its stationsand vehicles, etc.; and switching to highly efficient powertransformers.
Of particular note, the Tobu Group is positioning the
Nikko-Kinugawa area as “International Eco Resort Nikko,” andis aiming for zero CO2 emissions from its business activities
in this area. As part of this, from April 2022, the Tobu Grouphas replaced the equivalent amount of electricity used forrailroad transportation in the Nikko-Kinugawa area, as well as
for express trains running from central Tokyo to the area, withelectricity derived from renewable energy sources, thereby
achieving net zero CO2 emissions for railway transportation in
the area.
In order to achieve net zero CO2 emissions by 2050, theTobu Group will continue to promote initiatives to reduce its
environmental burden.

• FY2023 greenhouse gas emissions
Scope 1

129,255 t-CO2

Scope 2

343,024 t-CO2(ii) Human capital / diversity
The Group aims to realize human friendliness in a society
in which people and communities shine together, with theregions along our extensive railway network as our businessbase. The human resources required to make that happen
are those who can think and act on their own initiative basedon the principles of dedication, enterprising spirit, and affinity
as set forth in the management philosophy of the Group, andwho can create business models that connect city to city,
people to city, and more.
Furthermore, to encourage the success of such humanresources, it is necessary to cultivate both the ability tocontinuously refine things, such as safety technology, over the

ANNUAL REPORT 2024

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Approach to Sustainability and Sustainability Initiatives
long term and the ability to create value through the provisionof new products and services in a rapidly changing businessenvironment.
This basic approach is reflected in our human resources
development policy and internal environment development
policy. We will continue to enhance the abilities and potentialof our diverse employees with the aim of making sustainableimprovements to our corporate value.
1. Strategy
The Group’s business environment is changing greatly. On
the one hand, inbound and going out demand are recovering.
On the other, work styles are changing, values are diversifying
and digital shift is rapidly advancing. In such an environment,
we view the medium- to long-term direction of managementby the Group to be to maintain and improve group-wide
profits by expanding growth businesses in the non-railway
business in addition to the railway business together withsustainable development of our core railway lines. We willachieve that through the challenging pursuit of adapting tochanging business environment and needs and co-creation ofvalue through collaboration and partnership with stakeholders
both inside and outside the Group
Our Long-Term Management Vision is for evolving
society and areas along our railway lines by taking onchallenges and engaging in cooperative creation. Based on
this vision, we believe that strengthening of human capital as
we have set forth in our priority strategies (growth strategies)
will be an essential initiative to drive our business forward
on the way to realizing our management strategies andMedium-Term Management Plan looking ahead 10 years in
the future. Accordingly, we have clarified the ideal humanresources and compiled our basic concept for employee
development to contribute to that in our Human Resources
Development Policy. Together with that, we have established
our Internal Environment Development Policy that summarizes
our way of thinking toward the employee support necessary
to develop the ideal human resources. Based on this policy,
we are engaging in various specific initiatives to strengthen
human capital with the aim of maximizing the performance of
employees and the organization by linking an improvementin the bonds and engagement between the company andemployees with an improvement in productivity.

16

TOBU RAILWAY CO., LTD.

<Human Resources Development Policy>
We will develop human resources who can think and act
on their own, embodying the principles of the Tobu Group’s
management philosophy, to contribute to the sustainablegrowth of both our businesses and local communities.
a. Ideal human resources
Human resources who will tie the cultivation of business
opportunities to the sustainable growth of local communities
through trust earned from further refining existing businesses
and value creation through new ideas without fear of change
b. Competencies required of ideal human resources(a) [Safety and security] Earn trust in each Tobu Groupbusiness(b) [Self-awareness and autonomy] Achieve self-actualizationand contribute to the organization by maximizing one’s own
abilities(c) [Dialogue and insight] Identify issues through dialogue withcustomers, employees, etc.
(d) [Acceptance and change] Come up with new ideas thatembrace diversity and needs(e) [Collaboration and co-creation] Create one-of-a-kind value
by involving others<Internal Environment Development Policy>(= concept of the support for employees necessary to develop
ideal human resources)(Policy 1) Support for human resources development that
promotes change in line with the times
We will support the development of human resources who
can collaborate with those from other fields while developing
their areas of expertise through the transmission of safety andtechnology as well as the development of human resources
who can respond flexibly to changes in the corporate
environment and create value.
(1) Transmission of safety and technology(2) Support for managers and supervisors (including future
managers and supervisors)(3) Support for independent career development

Approach to Sustainability and Sustainability Initiatives
Correlation Diagram between Our Human Resources Development Policy and Competencies:Three Management Philosophies and Five Behavioral Characteristics* Five competencies required of ideal
human resources*: Related specific performance

Safety andsecurity

Earn trust in each Tobu Group business

Dedication

Self-awarenessand autonomy
Achieve self-actualization andcontribute to the organization by
maximizing one’ s own abilities

Contribute to materializing anaffluent society based on the
profound awareness that all of
its businesses are supported
by society

Human Resources Development Policy
Develop human resources
who can think and act on their own
Enterprising spirit
Keep taking up challenges
with a pioneering spirit topave the way to a new era
through constantself-improvement withoutcomplacency

Dialogue andinsight

Collaboration
andco-creation

Affinity

Create one-of-a-kind value
by involving others

Contribute to the evolution ofsociety by promoting its
business as well as the welfareof its employees based on theconcept of congeniality amongpeople and harmony with theenvironment

Acceptanceand change

Identify issues through dialogue
with customers, employees, etc.

Come up with new ideas thatembrace diversity and needs

Specific Support Measures
1. Human resources development
and independent careerdevelopment support• Provide ongoing education tocontinue honing trust through thetransmission of a safety culture• Provide education with a focus on
support for managers and future
managers

2. Diversity & inclusion promotion

3. Human capital optimization
system design

4. Health management andwell-being promotion• Provide ongoing diversity & inclusion
promotion education• Assist careers by offering support forbalancing life with work

• Expand recruitment channels• Promote career management• Establish a work styles system andreview the evaluation system• Maintain and improve employee
performance• Promote maintenance of mental andphysical health and improve literacy(Policy 2) D evelopment of a work style that allows people
to work with peace of mind and continuallydemonstrate their abilities
Along with the promotion of diversity and inclusion, we willdevelop a work style in which each employee, regardlessof individual attributes or life stage, can respect eachother, work comfortably and safely, and maximize theirabilities. Furthermore, we aim to provide further value toour employees by improving their job satisfaction throughinitiatives to maintain and promote their health.

ANNUAL REPORT 2024

17

Approach to Sustainability and Sustainability Initiatives
2. Indicators and targets
Indicator
1. Human resources
development andindependent careerdevelopment support• Usage status of mock training
facilities which contribute tosafety education• Dialogue skills (listening
and one-on-one) training
implementation status

2. Diversity & inclusion
promotion

3. Human capital optimization
system design

4. Health management andwell-being promotion

TargetResult88.5%
Implement on an ongoing basis(5,134 attendees)
every fiscal year
50% of more of applicable
employees
Attendance by all those applicable 79.2%
at the section manager assistants (206 attendees)
and operational manager level
between fiscal 2023 and 2025

• Group company manager andsupervisor support training
implementation status*2

Implement on an ongoing basis
every fiscal year

20 managers and supervisors(17 companies)• Expansion of “voluntary basis
training” to group company
employees*1• Diversity & inclusion thematic
education implementation
status• Career assistance withmeetings to support balancing
life with work
• Hiring rate of employees withdisabilities• Acquisition of human resources
with diverse knowledge andexperiences

50% or more of all participants

46.7%(589 out of 1,260 participants)

Implement on an ongoing basis
for all applicable employes oncea year
Implementation on an ongoingbasis every fiscal year

Implement from fiscal 2024

• Transition rate tore-employment• Spousal maternity leave
utilization rate
• Percentage of employees
undergoing periodic healthcheckups• Stress check implementationrate• Number of paid leave days
used per person*2

40 employees

Maintain at a level above thestatutory hiring rate (2.5%)
Expand and acquire recruitment
channels (acquisition of humanresources not reliant on the hiringof new graduates)
Maintain at a level near 100%

3.35%
(as of June 1, 2023)
22.6%

88.6%

Maintain at a level near 100%

92.0%

Maintain at 100%

100%

Maintain at a level near 100%

96.7%

Use of 20 days or more

22.9 days(Notes) 1.	These are the indicators and targets for the whole of the Group. Other than these two items, the indicators and targets are for the Company and the companies
mainly responsible for railway business-related operations: TOBU STATION SERVICE Co., LTD., Tobu Engineering Co., Ltd., Tobu Intertech Co., Ltd. and Tobu
Shared Services CO., LTD. The indicator and target for the hiring rate of employees with disabilities includes Symphonia Tobu Co., Ltd. (a special subsidiary).
		
2. We have given the number of days used per person including the Company’s unique paid leave program in addition to annual paid leave.

We obtained the Platinum Kurumin certification in February
2024 as a result of the specific support we provided in fiscal
2023. This support included promoting diversity & inclusion.
Moreover, in particular, we continued to provide support forbalancing life with work by allowing employees to continued
working with peace of mind even after childbirth and raisingchildren. In addition, to achieve the active participation in theworkplace of diverse human resources, we strived to promotea change in thinking and behavior. To that end, we provided
D&I Inlcusion Promotion Training to all our 211 managers who
are key members in their workplaces to give them the thinking
and dialogue skills they need. Furthermore, the status of our
18

TOBU RAILWAY CO., LTD.

efforts for health investment measures were recognized fromthe perspective of health and productivity management. That
led to us earning the designation as a 2024 Certified Heath& Productivity Management Outstanding Organization (Large
Enterprise Category) in March 2024.

Approach to Sustainability and Sustainability Initiatives(Reference indicators)
Fiscal year under review
Name

Percentage of women Paternity leave
utilization rate
in management(%)*2, 4positions (%)*1

Male/female wage gap (%)*1, 3, 4Allemployees

Full-time
employees

Part-time/fixedterm employees

TOBU STATION SERVICE Co., LTD.

0.0

40.0

94.3

94.3

—

ASAHI Motor Corporation

0.0

0.0

89.7

95.7

85.6

TOBU BUS CO., LTD

0.0

0.0

60.2

64.3

59.1

TOBU BUS WEST CO., LTD

0.0

100.0

94.6

90.1

98.8

TOBU BUS CENTRAL CO., LTD

0.0

80.0

91.6

90.4

75.9

Gunma Logistic Systems Co., Ltd

0.0

0.0

64.1

77.9

94.4

TOBU SPORTS Co., Ltd.

4.9

—

83.3

82.5

104.4

TOBU TOP TOURS CO., LTD.

10.4

63.6

68.7

67.5

74.2

TOPSTAFF, INC.

33.3

0.0

92.2

88.9

98.0

Tobu Hotel Management Co., Ltd.

14.5

75.0

88.7

94.9

80.2

KANAYA HOTEL Co., Ltd.

28.6

—

79.6

73.7

92.7

TOBU REAL ESTATE CO., LTD.

0.0

100.0

107.4

69.5

77.7

TOBU DEPARTMENT STORE CO., LTD.

22.1

100.0

65.4

69.9

76.5

TOBU UTSUNOMIYADEPARTMENTSTORE CO., LTD.

19.1

—

67.5

73.3

102.3

TOBU STORE CO., LTD.

6.1

6.7

57.8

71.9

86.5

TOBU Keibi Support Co., Ltd.

7.7

—

80.5

84.2

82.2

Tobu Shoji Co., Ltd.

3.2

33.3

70.0

73.8

97.9

Tobu Foods Service Co., Ltd.

3.6

—

59.3

81.3

88.3

TOBU CONSTRUCTION Co., Ltd.

2.4

0.0

74.7

75.8

58.5

Tobu ryokuchi Co., Ltd

0.0

16.7

63.4

79.0

60.2

Tobu Building Management Co., Ltd.

0.0

28.6

71.9

79.8

89.4

(Notes) 1. The number of employees is calculated based on the number of working hours.
		
2.	The difference in wages between male and female full-time employees is due to labor composition factors (service and age). There is no difference in the system
based on gender when determining wage levels.
		
3.	The difference in wages between male and female part-time and fixed-term employees is due to the fact that more female workers are engaged in jobs with higher
wage levels.
		
4. “-” means that there are no applicable employees.

(iii) Information security
1. Corporate governance/risk management
As a corporate group that provides various services, including
critical social infrastructure such as railways and radio towers,
the Tobu Group uses many information systems. Cyberattacks, unauthorized access, computer virus infection, or
human tampering with these systems could seriously impair
their functions and disrupt business operations, which could

impact our business performance and financial position. In
order to ensure the stability and continuity of our business,
the Group has implemented various information security
measures to secure the functions of our information systems.
As a governance structure for information security
management at the Company, we have established theInformation Security Committee, chaired by the executive
officer in charge of the ICT Promotion Department, to report

ANNUAL REPORT 2024

19

Approach to Sustainability and Sustainability Initiatives
on the implementation status and implementation plan of
information security management. The proceedings of theCommittee are reported to the Governance Committee.
In addition to establishing rules and regulations inaccordance with the Information Security Policy and reviewing
them in a timely manner, the Group monitors the status
of information security initiatives by group companies andimplements information security measures through a PDCA
cycle. In addition, the Group regularly conducts training forgroup companies to raise awareness of information security
among executives and employees.
To ensure the sustainability of our railway business,
which is a critical infrastructure, we have established anenvironment in which critical systems related to railway
operations are isolated from external networks and only
authorized programs can be executed. Information security
e-learning and hands-on training simulating targeted e-mailattacks are provided to all computer users, including officers.
In addition, to address information security incidents such asincreasingly sophisticated and complex cyber-attacks, wehave a dedicated team, TOBU-CSIRT, which swiftly responds
to emergency situations and engages in prevention activities
during normal times. There is also a system in place whereby
external experts continually monitor operational networks andnotify the person in charge in the event that an abnormality
is detected so that we can swiftly respond to incidents.
Moreover, we conduct response drills based on scenariosthat assume the occurrence of information security incidents
within the Group. We also incorporate security clauses into
our agreements with suppliers to ensure that we are ready to
conduct prompt investigations in the event of an emergency.
(iv) Compliance1. Corporate governance/risk management
The Tobu Group has established the Tobu Group Basic
Policy on Compliance and is working to ensure thoroughlegal compliance and prevent misconduct by preparing acompliance manual that describes legal compliance andthe creation of a sound workplace environment and bystrengthening compliance education for all Group employees.
We also seek to ensure compliance by such means as
informing all Tobu Group employees about the internal
whistleblowing system and promoting its use.
To build relationships with business partners andothers, we have stipulated in our Compliance Manual that
we will conduct fair, equitable, and transparent selection andtransactions in accordance with laws and regulations andsound business practices. Through training and education,
20

TOBU RAILWAY CO., LTD.

we are working to prevent bribery and corruption. In addition,
the Group strictly manages insider information and ensuresthorough prohibition of insider trading through education usinge-learning and other means. Furthermore, the Group takes
a firm stance against antisocial forces and works towards
their exclusion. We hold the Tobu Group Liaison Council tostrengthen the defense against antisocial forces within theGroup and establish a system for sharing information andresponse measures.
Moreover, the Company has established a Compliance
Committee chaired by the executive officer in charge ofthe General Affairs and Legal Department to promotecompliance management, monitor, evaluate, and review
the implementation status of compliance management, andreport the proceedings of the committee to the GovernanceCommittee, which is chaired by an outside director.
In April 2023, we announced our Declaration ofPartnership Building with the aim of achieving co-existence
and co-prosperity with our business partners. By promoting
the initiatives of the declaration, we will contribute to thebusiness continuity of and optimization of transactions withour business partners.

Corporate Governance
Basic Approach to Corporate
GovernanceWe believe that it is important to establish a fair andtransparent management structure in order to earn the trustof our shareholders and many other stakeholders as well as
to achieve sustainable growth and improve our corporate
value in the medium to long term. We will continue to further
enhance our Board of Directors, executive officer system,
and corporate auditor system and engage in the proactive
disclosure of corporate information in a timely and appropriatemanner. Furthermore, we will work to strengthen corporate
governance by engaging in honest corporate activity basedon corporate ethics and awareness of legal compliance.

Current Status of Corporate
GovernanceCorporate Governance Structure
The Company’s Board of Directors consists of nine
directors, including four outside directors. In addition tomatters stipulated by law and the Articles of Incorporation,
the Board of Directors makes decisions on specificmanagement strategies, management plans, and otherimportant management matters based on the Tobu GroupManagement Philosophy and Tobu Group Management Policyin accordance with the provisions of the Rules of the Boardof Directors and supervises the execution of duties by eachdirector.
The President and Representative Director chairs theBoard of Directors, and ordinary meetings are held monthly, inprinciple. All fulltime directors attend these meetings, and thestatus of attendance by outside directors is provided in thebusiness report.
Furthermore, we have introduced an executive officer
system to clarify authority and responsibility for businessexecution. With regard to executive functions, we havedeveloped a system where executive officers executebusiness operations according to the authority andresponsibility established within the “Rules for Execution of
Duties” under the control and supervision of the representative
director. The executive officers are selected by the Board of
Directors. In this way, we increase management mobility.

Election of Outside Directors
We have also appointed outside directors who play animportant role in ensuring the efficiency and fairness ofmanagement. At meetings of the Board of Directors and otherimportant meetings, our directors provide explanations of theexecution of duties with outside directors in mind and reflect
their objective opinions and suggestions in managementof the Company. Moreover, outside directors contribute to
the enhancement of corporate governance as membersof the Nominating and Remuneration Committee, which isan advisory body of the Board of Directors that considers
important matters related to nominations and remuneration,and play an important role in strengthening the independence
and objectivity of functions of the Board of Directors. The
Nominating and Remuneration Committee is comprised ofthree outside directors and two representative directors,
and the chair of the Committee is selected from among theoutside directors. The Committee reviews the adequacy ofthe proposal of nomination of director candidates, as wellas the adequacy of the level of remuneration, organizing theCommittee’s opinion on these subjects, and report to theBoard of Directors. All members attend every meeting.

Management Meeting and Meeting of Executive
Officers
The Management Meeting, which consists of full-time
directors, the heads of the Group business divisions, theHead of the Railway Business Division, the Head of the Life
Service Creation Division, and other persons appointed by
the President and Representative Director, and is attended
by standing audit & supervisory board members, deliberates
and decides on business execution delegated by the
Board of Directors while also sharing important information
concerning management.
At the meeting of executive officers, which is comprisedof fulltime directors, all executive officers and standing audit& supervisory board members, reports are provided every
quarter to directors on the status of execution of operations
and progress on the management plan, and information isshared on management to review business development
plans for the next year and other matters.

Internal control system
In an effort to ensure the reliability of the internal control
system, establish corporate ethics, and ensure that its
officers and its employees are fully aware of compliance, theCompany has been promoting compliance management. This

ANNUAL REPORT 2024

21

Corporate Governanceconsists primarily of setting out specific guidelines for dayto-day activities and developing training systems based on
the Tobu Group Basic Policy on Compliance and establishinga Compliance Committee that meets regularly to provide
support and guidance on effective compliance.

Governance Committee
Additionally, to further increase the effectiveness of corporate
governance, we have established a Governance Committee,
which is chaired by the President and Representative Director
and consists of representative directors, outside directors andstanding audit & supervisory board members. In responseto reports on and suggestions concerning activity plans
and activities from the chairs of the Compliance and Crisis
Management committees, it engages in deliberations andevaluations, referring matters to the Board of Directors tostrengthen the supervisory functions of the Board of Directors.
The Governance Committee is chaired by an outside director.

Group Company Audits
To ensure the proper operation of the Tobu Group under
the Rules for Management of Group Companies, the Groupbusiness division that is specifically responsible for the
management of subsidiaries and other companies manages

and supports the business execution of subsidiaries and othercompanies.
Additionally, to strengthen and enhance the functionof monitoring group companies and further increase theeffectiveness of the internal control system at the group level,
we have prepared an integrated system within the Groupbusiness division. It consists of seven individuals of generalmanager rank or lower, auditing group companies andproviding guidance for improvement based on those results.
Furthermore, our Internal Audit Office conducts internal
audits of those monitoring activities. Group management
policies are communicated and management informationis shared by holding Tobu Group Corporate Meetings andother meeting on a regular basis in the aim of improving thecorporate value of the Group. In addition, to raise the levelsof fairness and transparency of the Group’s management, theCompany conducts regular investor relations events, suchas results briefings for analysts and tours of facilities in areas
served by our railway stations. It also provides extensive
corporate information on its website and will continue topursue a policy of openness in communications with investors
and the general public in a prompt and appropriate manner.

Meeting of shareholders
Appoint and dismiss

Audit &
Supervisory Board
Accounting
auditorStanding audit &supervisoryboard members

Appoint and dismiss

Audit

Board of Directors
Directors
Outside directors

Nominating andRemuneration Committee
Governance Committee

President and Representative Director
President and CEO

Outside audit &supervisoryboard members

Management Meeting
Compliance Committee
Crisis Management
Committee
Executive officer
Audit

Internal Audit OfficeBusiness division
General administrative division

Monitoring

Group companies

22

TOBU RAILWAY CO., LTD.

Environment Promotion
Committee

Risks to which the Company’s Business is Subject
Risks with the potential to significantly impact investment decisions have been broken down into four categories based on thestatus of the business and accounting as set forth in the Securities Report, namely risks impacting the business environmentand business model, risks related to securing of safety and peace of mind, risks related to securing management resources, andrisks related to corporate governance. The actions taken to prevent these risks from materializing are provided below.
Note that forward-looking statements within this document are based on our judgment as of the time of publishing the
Securities Report (June 23, 2023).

(1) Risks impacting the business environmentand business modeli.		Changes in the law
In the railway business, permission to engage in railway
operations must be obtained from the Ministry of Land,
Infrastructure, Transport and Tourism with respect to eachrailway line and each category of railway-related businessunder Article 3 of the Railway Business Law. Under Article
16 of the Law, the initial setting and subsequent revision of
fares by passenger transport operators must not exceed theupper limits approved by the Ministry. The Minister of Land,
Infrastructure, Transport and Tourism conducts a review ofwhether or not such revisions exceed fair costs incurred asa result of efficient management and fair profits to approvethem (fully-distributed cost method). Additionally, the railway
operator must apply for permission to the Ministry each time itwishes to revise its fares within the approved upper limits.
Major changes are taking place in the socio-economic
environment surrounding railways. Failure to reflect ourcosts in fares in a timely and appropriate manner despite
thorough cost control measures could impact the businessperformance of the Company.
In addition, various laws, regulations, and controls arealso applied to the various businesses of group companies
engaged in non-railway businesses. Changes to these
legal regulations could have an impact on the businessperformance and/or financial position of the Group.
ii. Rapid acceleration of population decline and aging ofsociety due to drop in birth rate
The total fertility rate in Japan began declining in 2016, andthe number of births also continues to drop. COVID-19 is
expected to further accelerate this trend. Although there areregional differences, population decline and aging of society
will continue in the coming years.
The current economic and social environment is further
spurring on the decrease in the birth rate and the number ofbirths. Although there will be differences depending on theregion, it is expected that the population and birth rate will
decline even further while society continues to age in the
future.
For that reason, the Group provides safe, secure andcomfortable work and school commutes and appealing
tourism transportation by improving convenience andspeed, including seamless transportation through mutual
train operations, and installing platform gates. At the sametime, the Group seeks to provide quality and comfortableliving environments and services and to attract tourists. We
are working to promote permanent residence and create anonresident population by improving value along our railway
lines through these efforts.
However, as the Group’s main market, especially forthe railway business, is located along Tobu Railway lines,
if the decrease in the population of consumers and the
low birth rate and aging society were to progress rapidly
in these areas, that could have an impact on the businessperformance and/or financial position of the Group.
iii. Lifestyle changes
New lifestyles such as in terms of work styles have permeated
and become entrenched due to the impact of COVID-19.
Accordingly, we expect that needs and values will continue tochange and diversify going forward.
For that reason, the Tobu Group will implement structuralreform in order to secure profits even in the midst of achanging business environment. We will promote efficiency
and labor savings by reviewing our business management
structure and carrying out cost reduction measures. In
addition, we aim to achieve sustainable development of ourbusiness by expanding our e-commerce business, working
on digital marketing utilizing TOBU POINT, and promoting theprovision of services that address the increase in demand for
suburban living as a business opportunity. Moreover, we will
aim to achieve sustainable development of our businesses bystrengthening our non-railway business through developmentof our railways to enhance customer-attracting bases andurban development using our collective group strengths andby strengthening profitability through the capture of tourism
demand.
However, if lifestyles that do not involve schoolcommutation or travel for leisure were to take root, that could
have an impact on the business performance and/or financial
position of the Group.
iv. Changes in the competitive environment
The Group is engaged in a wide range of businesses in
addition to the railway business. If the relationship between
supply and demand were to worsen or competition were
ANNUAL REPORT 2024

23

Risks to which the Company’s Business is Subject
to intensify due to significant changes in the businessenvironment or the emergence of new competing services
and competitors in conjunction with rapid technologicalinnovation, it could have an impact on the businessperformance and/or financial position of the Group.
For that reason, the Group will accurately identify
changes in the business environment and customer needs
and incorporate new technologies and external knowledge
into our business while utilizing the know-how and digitaltechnology cultivated by each group company. This willallow us to provide optimal services to our customers in atimely and flexible manner and to improve our services andproductivity, which will help secure profits.
v. Pandemics and other public health crises
In the event of a pandemic or other public health crisis
leading to lockdowns or people refraining from going out, thenumber of users, primarily in our transportation and leisurebusinesses, would decrease sharply, and this could have an
impact on the business performance and/or financial positionof the Group.
As such, the Group will continue to implement basic
infection prevention measures for employees and work toensure that our customers can use our services safely andsecurely by implementing business continuity plans andinfection control measures as called for by the situation. We
will continue to support society and keep up our business
operations, especially in the railway business, which is one of
the social infrastructures essential for securing stable lives forthe citizens of Japan.

(2) Risks related to securing of safety and peaceof mindi. Securing of safety and peace of mind
The Group believes that the securing of safety and peace ofmind is the most important thing when it comes to earning
customer trust. As such, we take utmost care in that regard,
but if a serious accident were to occur leading to long-termsuspension of business operations, it could have an impact on
the business performance and/or financial position of the Group.
Based on the belief that safety is the foundation of all
business, the Group works to establish a safety management
system with the top priority of ensuring the safety ofcustomers. We also continue to invest in safety equipment
and implement education and training as we endeavor toensure safety and peace of mind.
ii. Impact of climate change, natural disasters, etc. on
business operations and continuity
Details of risks related to business operation and maintenancearising from climate change are provided in “Approach to
24

TOBU RAILWAY CO., LTD.

Sustainability and Sustainability Initiatives (2) Key sustainability
items (i) Climate change.”iii. Impact of unforeseen accidents, disasters, and otherincidents on business operation and maintenance
The Group is engaged in a wide range of businesses,
including the railway business. However, if external factors
such as unforeseen accidents, disasters, or outbreaks ofterrorism or war were to cause a long-term suspension ofbusiness activities, it could have an impact on the businessperformance and/or financial position of the Group.
For that reason, the Tobu Group is working to enhance
our crisis management system, including establishment ofa business continuity plan in preparation for a large-scale
natural disaster or other emergency situation while also
continuing to work on measures for securing safety, including
development of infrastructure that is resistant to natural
disasters and establishment of counter-terrorism measures.
iv. Management of personal information
The Group manages databases containing information on
individual customers in each business. In the event of an
information leak, the resulting compensation for damages,
loss of credibility, etc. could impact the business performance
and/or financial position of the Group.
For that reason, the Group exercises due care whenhandling information and manages it accordingly. This
includes the establishment of in-house protection regulations
on the acquisition and use of information, the developmentof a management system, employee education, and fully
enforcing information management by related parties aswell as strengthening the development and supervision ofconfidentiality when outsourcing information processing.
v. Information security measures
Details of risks related to information security are provided in“Approach to Sustainability and Sustainability Initiatives (2)Key sustainability items (iii) Information security.”(3) Risks related to securing management
resources
i. Labor shortages
The Tobu Group requires a large labor force, including forour railway business. We expect the decrease in population
and aging of society due to the low birth rate to progress at
an even faster rate. If, as a result, labor costs soar and labor
shortages arise due to hiring difficulties, it could have an
impact on the business performance and/or financial positionof the Group.
To secure human resources, we will endeavor to securea safe and flexible working environment in which people canRisks to which the Company’s Business is Subject
work comfortably. This includes the promotion and trainingof human resources with diverse knowledge and values,
offering stable employment, responding to diversifying work
styles, and enhancing benefits. Furthermore, we will workon improving productivity by such means as utilizing digitaltechnology, including automatic operation, and build an
efficient business management system.
ii. Soaring prices and shortages of raw materials andresources
The Tobu Group utilizes a large amount of infrastructure
equipment, including in our railway business, and uses
electricity and fuel to power the equipment. In addition,
each business uses various raw materials. If the prices ofraw materials and resources soar or there are procurement
shortages due to the occurrence of natural disasters, thedeterioration of situations overseas or exchange rates, it could
have an impact on the business performance and/or financial
position of the Group.
For that reason, the Group is working to reduce
costs and build a sustainable society. This includes theintroduction of high efficiency vehicles and equipment tocontribute to energy conservation, reduction of energy
consumption and greenhouse gas emissions throughoptimization and review of equipment, and timely
procurement of raw materials and resources.
iii. Increase in interest-bearing debt balance and interest
rate fluctuation
The Group primarily procures the funds necessary for ongoing
capital expenditures in each business through the issuanceof corporate bonds and borrowing from financial institutions.
As such, it has a high interest-bearing debt balance due toinvestments for future growth. If interest rates rise further inthe future, or if the rating agencies downgrade the Group’s
credit rating, this could increase the interest payment burden
and worsen the Group’s financing conditions, which could
have an impact on the business performance and/or financial
position of the Group.
For that reason, the Group is working on properly
managing the consolidated interest-bearing debt balance
to reduce it in light of the current rising interest rates andpromoting diversification of fundraising methods in order toprocure funds at the right time via the optimal method while
taking medium- to long-term interest rates into account.

aim to increase the profitability of our businesses and improvethe value of our assets. We also verify the significance ofinvestment securities to our portfolio and gradually shrink ourholdings if dilution is likely in the medium to long term.
However, if an impairment loss or loss on valuation were
to be recorded due to a significant drop in the market valueof assets arising from a decline in cash flow generation ora substantial decline in the stock price, this could have an
impact on the business performance and/or financial positionof the Group.

(4) Risks related to corporate governancei. Compliance
Details of risks related to compliance are provided in“Approach to Sustainability and Sustainability Initiatives (2)Key sustainability items (iv) Compliance.”ii. Human Rights
The Group has established a working environment andprograms to eliminate difficulties and employs diverse humanresources, but in the event of an infringement of human rights,
the resulting social sanctions and loss of credibility could havean impact on the business performances and/or financial
position of the Group.
For that reason, the Group has established a system forcarrying out systematic and ongoing education on humanrights. In addition to ensuring proper awareness among
employees and deepening their understanding, we continue
to work on developing a working environment in which
employees can do their work enthusiastically as part of ourongoing efforts to ensure respect for human rights.
The above is a list of the principal categories of risk thought
to apply to the business operations of the Group, but it is notintended to be an exhaustive list of all risks.

iv. Drop in portfolio value
The Group possesses assets necessary to engage indevelopment of diverse businesses and investment
securities such as stocks. Through thorough managementof expenditures and implementation of structural reform, we
ANNUAL REPORT 202425

Five-Year Summary(Years ended March 31, TOBU RAILWAY CO.,LTD. and Subsidiaries)

Consolidated
Millions of Yen
2020

2021

2022

Operating revenues...................................................................
Operating profit.........................................................................
Profit attributable to owners of parent.......................................
Net assets..................................................................................
Total assets................................................................................

¥ 653,874
62,65335,530473,969
1,656,092¥ 496,326(13,577)(24,965)
453,103
1,682,497

Basic earnings per share............................................................
Diluted earnings per share........................................................

¥168.84—(¥119.67)
—

2024

2023

¥ 506,023
24,732
13,453459,219
1,689,855¥ 614,751
56,68829,179480,575
1,738,195¥ 635,964
73,88348,164
541,713
1,704,063¥140.06—¥232.99—

Yen¥64.49—

Sales by Sector
Millions of Yen
2020

Transportation...........................................................................
Leisure.......................................................................................
Real estate.................................................................................
Retail distribution......................................................................
Other.........................................................................................

2021¥ 215,427
72,072
67,912
266,418
110,5132022¥ 159,122
39,05554,228216,253
88,8632024

2023¥ 173,264
108,311
62,203
136,640
89,497¥ 189,189
188,354
60,915
163,438
81,902¥ 208,335
184,761
62,975
165,629
91,873

Non-Consolidated
Millions of Yen
2020

2021

2022

2024

2023

Operating revenues...................................................................
Operating profit.........................................................................
Net profit...................................................................................
Net assets..................................................................................

¥ 232,788
47,97927,071
383,618¥ 167,696
7,325(21,607)363,007¥ 188,851
23,355
16,044
373,696¥ 204,585
28,653
16,407
383,645¥ 227,462
42,86729,036
422,565

Total assets................................................................................

1,560,929

1,571,092

1,577,048

1,601,122

1,587,714

Dividends per share of common stock......................................

¥40

¥20

¥30

¥55

Yen

26

TOBU RAILWAY CO., LTD.

¥20

Consolidated Balance Sheet
March 31, 2023 and 2024

Millions of Yen

AssetsCurrent assets
Cash and deposits....................................................................................................................................
Notes and accounts receivable - trade.....................................................................................................
Contract assets.........................................................................................................................................
Short-term loans receivable.....................................................................................................................
Land and buildings for sale in lots..........................................................................................................
Prepaid expenses.....................................................................................................................................
Other........................................................................................................................................................
Allowance for doubtful accounts.............................................................................................................
Total current assets..................................................................................................................................

2024

2023

¥

69,25570,561
14,584
1,691
19,2352,713
28,507(459)
206,090¥

31,44869,796
5,343
1,824
24,2382,659
33,808(165)
168,953

Non-current assets
Property, plant and equipment
Buildings and structures, net...............................................................................................................
Machinery, equipment and vehicles, net.............................................................................................
Land.....................................................................................................................................................
Construction in progress......................................................................................................................
Other, net.............................................................................................................................................
Total property, plant and equipment....................................................................................................

530,107
79,055
636,409135,294
12,981
1,393,848

536,825
78,715
636,462
101,868
13,396
1,367,269

Intangible assets
Contribution for utilities......................................................................................................................
Other....................................................................................................................................................
Total intangible assets..........................................................................................................................

1,446
18,00819,455

1,635
16,971
18,606

73,61483
975
5,969
12,707
26,583(1,132)
118,801
1,532,105¥ 1,738,195

101,459
361
358
9,400
13,06325,422(832)
149,234
1,535,110¥ 1,704,063

Investments and other assets
Investment securities...........................................................................................................................
Long-term loans receivable.................................................................................................................
Distressed receivables..........................................................................................................................
Retirement benefit asset.......................................................................................................................
Deferred tax assets...............................................................................................................................
Other....................................................................................................................................................
Allowance for doubtful accounts.........................................................................................................
Total investments and other assets.......................................................................................................
Total non-current assets...........................................................................................................................
Total assets.................................................................................................................................................

ANNUAL REPORT 202427

Consolidated Balance Sheet
March 31, 2023 and 2024

Millions of Yen

Liabilities
Current liabilities
Notes and accounts payable - trade.........................................................................................................
Short-term borrowings............................................................................................................................
Current portion of long-term borrowings................................................................................................
Current portion of bonds payable............................................................................................................
Accrued expenses....................................................................................................................................
Accrued consumption taxes.....................................................................................................................
Income taxes payable..............................................................................................................................
Advances received...................................................................................................................................
Contract liabilities...................................................................................................................................
Provision for bonuses..............................................................................................................................
Provision for allowance for loss on collection of gift certificates outstnding.........................................
Asset retirement obligations....................................................................................................................
Other........................................................................................................................................................
Total current liabilities.............................................................................................................................
Non-current liabilities
Bonds payable.........................................................................................................................................
Long-term borrowings.............................................................................................................................
Long-term accounts payable to Japan railway construction, transport and technology agency.............
Deferred tax liabilities.............................................................................................................................
Deferred tax liabilities for land revaluation.............................................................................................
Provision for retirement benefits for directors (and other officers).........................................................
Provision for share awards......................................................................................................................
Retirement benefit liability......................................................................................................................
Asset retirement obligations....................................................................................................................
Other........................................................................................................................................................
Total non-current liabilities.....................................................................................................................
Total liabilities............................................................................................................................................

2024

2023

¥

51,92236,362
83,14319,9207,633
5,294
12,10187,13048,674
2,608
4,332
563
99,753
459,439¥

48,65340,282
65,20820,0607,262
3,155
13,91859,40440,733
2,719
4,414
61
80,447386,322

158,160
494,592
2,584
9,961
49,640975—
43,997
3,664
34,604
798,181
1,257,620

138,100
484,091
1,540
19,33949,5881,043
2,157
42,7203,519
33,928776,027
1,162,350

102,135
51,958258,028(10,302)401,820

102,135
52,214
298,039(10,545)441,843

25,62447,593144(428)
72,933
5,820
480,575¥1,738,195

45,37247,474180
822
93,8506,019
541,713¥1,704,063

Net assets
Shareholders’ equity
Share capital............................................................................................................................................
Capital surplus.........................................................................................................................................
Retained earnings....................................................................................................................................
Treasury shares........................................................................................................................................
Total shareholders’ equity.......................................................................................................................
Accumulated other comprehensive income
Valuation difference on available-for-sale securities...............................................................................
Revaluation reserve for land....................................................................................................................
Foreign currency translation adjustment.................................................................................................
Remeasurements of defined benefit plans...............................................................................................
Total accumulated other comprehensive income.....................................................................................
Non-controlling interests..........................................................................................................................
Total net assets...........................................................................................................................................
Total liabilities and net assets.......................................................................................................................

28

TOBU RAILWAY CO., LTD.

Consolidated Statements of Income and Comprehensive Income
Years ended March 31, 2023 and 2024

Millions of Yen

Consolidated Statement of Income
Operating revenue...........................................................................................................................................
Operating expenses.........................................................................................................................................
Operating expenses and cost of sales of transportation..............................................................................
Selling, general and administrative expenses..............................................................................................
Total operating expenses.............................................................................................................................
Operating profit...............................................................................................................................................
Non-operating income
Interest income............................................................................................................................................
Dividend income.........................................................................................................................................
Dividend income of insurance....................................................................................................................
Share of profit of entities accounted for using equity method....................................................................
Other............................................................................................................................................................
Total non-operating income........................................................................................................................
Non-operating expenses
Interest expenses.........................................................................................................................................
Other............................................................................................................................................................
Total non-operating expenses......................................................................................................................
Ordinary profit................................................................................................................................................
Extraordinary income
Gain on sale of non-current assets..............................................................................................................
Contribution received for construction........................................................................................................
Other............................................................................................................................................................
Total extraordinary income.........................................................................................................................
Extraordinary losses
Loss on retirement of non-current assets....................................................................................................
Loss on tax purpose reduction entry of non-current assets.........................................................................
Impairment losses........................................................................................................................................
Loss on termination of retirement benefit plan...........................................................................................
Extra retirement payments..........................................................................................................................
Other............................................................................................................................................................
Total extraordinary losses............................................................................................................................
Profit before income taxes..............................................................................................................................
Income taxes - current.....................................................................................................................................
Income taxes - deferred...................................................................................................................................
Total income taxes..........................................................................................................................................
Profit................................................................................................................................................................
Profit (loss) attributable to non-controlling interests......................................................................................
Profit attributable to owners of parent.............................................................................................................

2024

2023

¥

614,751¥

635,964

440,959
117,103
558,062
56,688441,499
120,581562,081
73,883

35
1,845
443
96
2,902
5,323

22
2,161
412
181
2,453
5,231

5,655
1,541
7,196
54,815

5,645
1,436
7,081
72,033

224
7,317
1,192
8,735

249
50,606
1,155
52,010

1,411
7,302
8,101
467
409
698
18,39145,15915,175835
16,011
29,148(30)
29,1791,647
50,584
3,483
—
—
480
56,19567,84819,804(353)
19,45048,398234
48,164

Millions of Yen

Consolidated Statements of Comprehensive Income

2023

2024

Profit................................................................................................................................................................
Other comprehensive income
Valuation difference on available-for-sale securities..................................................................................
Foreign currency translation adjustment.....................................................................................................
Remeasurements of defined benefit plans, net of tax..................................................................................
Share of other comprehensive income of entities accounted for using equity method...............................
Total other comprehensive income..............................................................................................................
Comprehensive income...................................................................................................................................
Comprehensive income attributable toComprehensive income attributable to owners of parent............................................................................
Comprehensive income attributable to non-controlling interests................................................................

29,14848,3985,860
66(2,438)
0
3,488
32,636

19,755361,251
021,042
69,441

32,663(26)

69,199241

ANNUAL REPORT 202429

Consolidated Statement of Changes in Equity
Previous Consolidated Fiscal Year
(April 1, 2022 to March 31, 2023)
Millions of yen
Shareholders’ equity

Balance at beginning of period......................................
Changes during period.....................................................
Dividends of surplus....................................................
Profit attributable to owners of parent..........................
Purchase of treasury shares..........................................
Disposal of treasury shares...........................................
Reversal of revaluation reserve for land.......................
Change in ownership interest of parent due totransactions with non-controlling interests..................
Net changes in items other thanshareholders’ equity.....................................................
Total changes during period.............................................
Balance at end of period................................................

Total
shareholders’equityShare capital Capital surplus

Retainedearnings

Treasuryshares¥102,135¥234,853¥(4,451) ¥383,902(5,218)29,179(5,218)29,179(5,906)55(784)¥51,364(0)(784)(5,906)55593—¥102,135

593¥51,958593

23,175¥258,028(5,851)
17,918¥(10,302) ¥401,820

Accumulated other comprehensive income

Balance at beginning of period......................................
Changes during period.....................................................
Dividends of surplus....................................................
Profit attributable to owners of parent..........................
Purchase of treasury shares..........................................
Disposal of treasury shares...........................................
Reversal of revaluation reserve for land.......................
Change in ownership interest of parent due totransactions with non-controlling interests..................
Net changes in items other thanshareholders’ equity.....................................................
Total changes during period.............................................
Balance at end of period................................................

30

TOBU RAILWAY CO., LTD.

Valuationdifference on
available-forsale securities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment¥19,768¥46,808¥77

Total
accumulated
Remeasurements
otherof defined benefit comprehensive
plansincome¥ 2,010¥68,664

Noncontrollinginterests

Total net assets¥ 6,652¥459,219(5,218)29,179(5,906)
55
(784)
593

5,856
5,856
¥25,624784
784¥47,593

66
66
¥144

(2,438)(2,438)¥(428)

4,268
4,268¥72,933

(831)
3,437
(831)
21,355¥5,820 ¥480,575

Consolidated Fiscal Year Under Review(April 1, 2023 to March 31, 2024)
Millions of yen
Shareholders’ equity

Balance at beginning of period......................................
Changes during period.....................................................
Dividends of surplus....................................................
Profit attributable to owners of parent..........................
Purchase of treasury shares..........................................
Disposal of treasury shares...........................................
Reversal of revaluation reserve for land.......................
Change in ownership interest of parent due totransactions with non-controlling interests..................
Net changes in items other thanshareholders’ equity.....................................................
Total changes during period.............................................
Balance at end of period................................................

Total
shareholders’equityShare capital Capital surplus

Retainedearnings

Treasuryshares¥102,135¥258,028¥(10,302) ¥401,820(8,272)
48,164(8,272)
48,164(2,261)
2,242
118¥51,958(2,261)
2,018

224
118
31

—
¥102,135255¥52,21431

40,010¥298,039(243)
40,022¥(10,545) ¥441,843

Accumulated other comprehensive income

Balance at beginning of period......................................
Changes during period.....................................................
Dividends of surplus....................................................
Profit attributable to owners of parent..........................
Purchase of treasury shares..........................................
Disposal of treasury shares
Reversal of revaluation reserve for land.......................
Change in ownership interest of parent due totransactions with non-controlling interests..................
Net changes in items other thanshareholders’ equity.....................................................
Total changes during period.............................................
Balance at end of period................................................

Valuationdifference on
available-forsale securities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment¥25,624¥47,593

¥144

Total
accumulated
Remeasurements
otherof defined benefit comprehensive
plansincome¥(428)¥72,933

Noncontrollinginterests

Total net assets¥5,820¥480,575(8,272)
48,164(2,261)
2,242
118
31

19,74819,748¥45,372

(118)
(118)
¥47,474

36
36
¥180

1,251
1,251
¥822

20,916
20,916¥93,850199
199¥6,01921,115
61,138¥541,713

ANNUAL REPORT 202431Consolidated Statement of Cash Flows
Years ended March31, 2023 and 2024

Millions of Yen

32

2023

2024

Cash flows from operating activities
Profit before income taxes...........................................................................................................................
Depreciation................................................................................................................................................
Impairment losses........................................................................................................................................
Loss on termination of retirement benefit system.......................................................................................
Special extra retirement payments..............................................................................................................
Amortization of goodwill............................................................................................................................
Share of loss (profit) of entities accounted for using equity method..........................................................
Increase (decrease) in allowance for doubtful accounts..............................................................................
Increase (decrease) in provision for bonuses..............................................................................................
Increase (decrease) in provision for allowance for loss on collection of gift certificates outstanding........
Increase (decrease) in provision for retirement benefits for directors (and other officers).........................
Increase (decrease) in provision for share awards......................................................................................
Increase (decrease) in retirement benefit liability.......................................................................................
Interest and dividend income......................................................................................................................
Interest expenses.........................................................................................................................................
Contribution received for construction........................................................................................................
Loss on retirement of non-current assets....................................................................................................
Loss on tax purpose reduction entry of non-current assets.........................................................................
Decrease (increase) in notes and accounts receivable - trade and contract assets......................................
Decrease (increase) in inventories...............................................................................................................
Increase (decrease) in trade payables..........................................................................................................
Other, net.....................................................................................................................................................
Subtotal.......................................................................................................................................................
Interest and dividends received...................................................................................................................
Interest paid.................................................................................................................................................
Payments for special extra retirement payments.........................................................................................
Income taxes paid........................................................................................................................................
Net cash provided by (used in) operating activities....................................................................................

¥ 45,159
53,354
8,101
467
409
385
(96)
(131)
308
(30)
16
—
(2,110)(1,880)5,655(7,644)
1,854
7,302(12,088)(3,427)
9,153
11,857
116,614
1,892(5,557)(409)(11,423)
101,115¥ 67,848
52,916
3,483
—
—
386
(181)
(594)
111
81
67
2,157
(1,765)(2,183)
5,645(50,861)
1,853
50,58410,006(3,608)(3,269)(19,266)
113,4122,183(5,585)—(18,320)
91,690Cash flows from investing activities
Net decrease (increase) in short-term loans receivable...............................................................................
Long-term loan advances............................................................................................................................
Proceeds from collection of long-term loans receivable.............................................................................
Purchase of short-term and long-term investment securities......................................................................
Proceeds from sale and redemption of short-term and long-term investment securities............................
Purchase of property, plant and equipment and intangible assets...............................................................
Proceeds from sale of property, plant and equipment and intangible assets...............................................
Proceeds from contribution received for construction................................................................................
Payments of guarantee deposits..................................................................................................................
Proceeds from refund of guarantee deposits...............................................................................................
Other, net.....................................................................................................................................................
Net cash provided by (used in) investing activities.....................................................................................

277
(20)
5
(3,054)
263(57,262)
335
8,163
(862)
1,233
(1,788)(52,711)

67
(301)
1
(46)
1,293
(82,934)377
19,194
(559)
1,220
61
(61,625)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings.......................................................................................
Proceeds from issuance of commercial papers...........................................................................................
Redemption of commercial papers..............................................................................................................
Proceeds from long-term borrowings..........................................................................................................
Repayments of long-term borrowings.........................................................................................................
Proceeds from issuance of bonds................................................................................................................
Redemption of bonds..................................................................................................................................
Net decrease (increase) in treasury shares..................................................................................................
Dividends paid............................................................................................................................................
Redemption cash collateral from share lending agreements.......................................................................
Repayments of accounts payable to Japan railway construction, transport and technology agency..........
Dividends paid to non-controlling interests................................................................................................
Purchase of shares of subsidiaries not resulting in change in scope of consolidation................................
Other, net.....................................................................................................................................................
Net cash provided by (used in) financing activities....................................................................................
Effect of exchange rate change on cash and cash equivalents........................................................................
Net increase (decrease) in cash and cash equivalents.....................................................................................
Cash and cash equivalents at beginning of period..........................................................................................
Cash and cash equivalents at end of period....................................................................................................

(27,580)
88,000(88,000)
61,424(54,717)
23,000(13,120)(5,851)(5,223)—(2,098)
(3)
(207)
(907)
(25,285)
69
23,18845,885¥ 69,074

3,920
60,000(60,000)
55,109(83,545)—(19,920)(18)(8,256)(13,058)(1,430)
(4)
(10)
(703)
(67,918)
37(37,816)
69,074¥ 31,258

TOBU RAILWAY CO., LTD.

Corporate Directory
Board of Directors and the Statutory Auditors (As of June 21, 2024)
Chairman and Representative
Director
Yoshizumi Nezu

President and Representative
Director
Yutaka Tsuzuki

Director
Yoshimi Yokota
Atsushi Shigeta
Takao Suzuki

Outside Director
Mitsuyoshi Shibata
Takaharu Ando
Noriko Yagasaki
Masanori Yanagi

Outside Audit & Supervisory Board
MemberYuzaburo Mogi
Shuji Fukuda
Nobuhide Hayashi

Standing Audit & Supervisory Board
MemberTomoya Sugiyama
Tatsuo Yoshida

Investor Information (As of March 31, 2024)
TOBU RAILWAY CO., LTD.
Registered Office:Principal Shareholders:

1-2 Oshiage 1-chome, Sumida-ku,
Tokyo 131-8522, Japan
https://www.tobu.co.jp/en/

Name

Head Office:18-12 Oshiage 2-chome, Sumida-ku,
Tokyo 131-8522, Japan

Date of Establishment:
November 1897

Number of Employees:
3,280

Common Stock:¥102,135 million

Number of Shareholders:
64,031

Number of Percentage ofShares Held Total Shares(Thousands)
in Issue

The Master Trust Bank of Japan, Ltd. (trust account).............
Custody Bank of Japan, Ltd. (trust account)..........................
Fukoku Mutual Life Insurance Company................................
STATE STREET BANK WEST CLIENT- TREATY 505234........
Nippon Life Insurance Company............................................
Mizuho Bank, Ltd..................................................................
JP MORGAN CHASE BANK 385781.....................................
Saitama Resona Bank, Limited..............................................
East Japan Railway Company...............................................
SSBTC CLIENT OMNIBUS ACCOUNT..................................

31,838
10,776
5,235
4,945
3,187
3,102
2,812
2,201
2,024
1,948

15.35
5.19
2.52
2.38
1.53
1.49
1.35
1.06
0.97
0.93

Securities Traded:

Annual Meeting of Shareholders:Common Stock
Tokyo Stock Exchange (Prime Market)

The annual meeting of shareholders isnormally held in June.

Transfer Agent and Registrar:
Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8233, Japan

ANNUAL REPORT 2024

33

TOBU RAILWAY CO., LTD.
https://www.tobu.co.jp/foreign/en/

Tobu Railway Lines (major stations only)

TOCHIGI
GUNMA
Akagi

Shin-fujiwara
Kinugawa-onsen
Tōbu-nikkō

IsesakiShin-tochigi

Kuzū

Ōta
Nishi-koizumi
Higashi-koizumi

Shimo-imaichi
Tōbu-utsunomiya

Tatebayashi

SAITAMA

Kuki
Yorii

Ogose
SakadoKawagoe

Kurihashi
Tōbu-dōbutsu-kōenŌmiyaKasukabeShin-koshigaya
Wakōshi
Daishimae
Nishiarai
Ikebukur oKita-senju
Hikifune
TOKYO SKYTREE
KameidoAsakusa
Oshiage

Nagareyama-ōtakanomori
Kashiwa
Shin-kamagaya
Funabashi

CHIBA

TOKYO

Tōbu Main Line
Isesaki Line

Sano LineNikkō Line
Kameido LineKiryū Line
Koizumi Line

Daishi Line

Utsunomiya Line

Noda Line

Kinugawa Line* The Isesaki Line between Asakusa/Oshiage Station andTōbu-dōbutsu-kōen Station is nicknamed “TOBU SKYTREE Line”* The Noda Line is nicknamed “TOBU URBAN PARK Line”

Tōbu Tōjō Line
Tōjō Main Line

Ogose Line