FY2021
Financial Results Briefing

May 13, 2022
TOBU RAILWAY CO., LTD.

Table of Contents

Ⅰ.FY2021 Business Results

Ｐ０２

Ⅱ.FY2022 Plan

Ｐ１３

Ⅲ.Medium-Term Business Plan

Ｐ２２

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1

Ⅰ．FY2021 Business Results ― Subsidiaries・Affiliates
Subsidiaries

March
2021

Increase

March
2022

Decrease

Notes

Transportation

27

-

1

26

October 2021 TOBU BUS EAST CO.,LTD Merger

Leisure

22

-

1

21

February2022 Decrease from transfer of Tanigawadake
Ropeway Co., Ltd shares

Real Estate

3

-

-

3

Retail Distribution

12

-

-

12

Other

16

-

-

16

80

-

2

78

Total

Affiliates

March
2021

Increase

March
2022

Decrease

Notes

Transportation

1

-

-

1

Leisure

2

-

-

2

Real Estate

-

-

-

-

Retail Distribution

-

-

-

-

Other

-

-

-

-

3

-

-

3

Total

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2

Ⅰ．FY2021 Business Results ― Consolidated statement of income
Unit: Millions of yen

FY2021Results

FY2021
Plan

ChangeNotes

Revenue fromOperations

506,023

503,200

2,823

Operating Income

24,73220,000

4,732

Recurring Income

27,406

21,500Extraordinary Profit

3,017

Extraordinary Loss
Profit Attributable to
Owners of Parent

Transportation +64,
Leisure +2,511,
Real Estate +1,103,
Retail Distribution +40,
Other-3,203
Transportation +459,
Leisure +1,518,
Real Estate +959,
Retail Distribution +524,
Other+926

FY2020Results

Change496,326

9,696-13,577

38,3105,906-9,89237,299

-

-

5,012

-1,995

6,523

-

-

17,399-10,876

13,453

9,200

4,253

-24,965

38,418

4.9%

-

-

-

-

1.5%

-

-

-

-

3.0%

-

-

-

-

Depreciation

55,57054,800770

56,664-1,094

EBITDA

80,30274,8005,502

43,087

37,215

Ratio of Operating
Income to Sales
Operating Income
ROA*
ROE*

*Operating income ROA = Consolidated operating income/{(Beginning total assets + Ending total assets)/2}*ROE = Profit attributable to owners of parent/{(Beginning equity + Ending equity)/2}*Plan figures are those from announcement on February 4, 2022.（P3～P12）
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3

Ⅰ．FY2021 Business Results ― Impact associated with application of
Accounting Standard for Revenue Recognition
FY2021

FY2021Results

Results（previous standard）

A

B

A-B

506,023

553,412-47,389

496,326

57,086

Transportation

173,264

173,536-271

159,122

14,413

Leisure108,31158,95449,35739,05519,898

Real Estate

62,20364,537-2,33454,22810,309Retail Distribution

136,640

228,305-91,664

216,253

12,051

Other

89,497

94,420-4,92388,863

5,557

Elimination-63,894-66,3412,447-61,196-5,144

Unit: Millions of yen

Revenue fromOperations

ChangeFY2020※Results

21 (previous
standard) – 20

C

B-C

*Difference between actual results for FY2021 prior to application of Accounting Standard for Revenue Recognition

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4

Ⅰ．FY2021 Business Results ― Consolidated balance sheet
Unit: Millions of yen

Current assets

FY2021Results

FY2020Results

ChangeNotes

167,475

158,452

9,022

1,522,380

1,524,044-1,664

1,689,855

1,682,497

7,358

Current liabilities

409,735

397,788

11,947

Non-current
liabilities

820,901

831,605-10,703

Total liabilities

1,230,636

1,229,393

1,243

Total net assets

459,219453,103

6,115

Total liabilities andnet assets

1,689,855

1,682,497

7,358

Non-current assets
Total assets

Shareholders equity
ratio
Interest-bearing debt
balance
Interest-bearing
debt/EBITDA multiple

26.8%

26.4%

0.4P

808,507837,279-28,772

10.1

19.4

-9.3P

Capital expenditures

39,17249,452-10,280

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Notes and accounts receivable - trade＋12,330

Notes and accounts payable – trade＋6,507

Retained earnings＋8,961

5

Ⅰ．FY2021 Business Results
Unit: Millions of yen

FY2021Results―

FY2020Results

Consolidated statement ofcash flows
ChangeNotes

Cash flows from operating activities

66,851

39,50427,347

Income before income taxes＋46,180

Cash flows from investing activities-30,964-66,283

35,318Decrease in expenditures for purchase of fixed assets＋26,669

Cash flows from financing activities-35,005

40,362-75,367

Decrease in procurement of interest-bearing debt
-76,532

938

13,540-12,601

45,88544,947938

Change in cash and cash
equivalents
Ending balance of cash and cash
equivalents

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6

Ⅰ．FY2021 Business Results― Transportation

FY2021Results

FY2021
Plan

Notes

Revenue fromOperations

173,264

173,200

64

159,122

14,142

Railways

127,975

127,400

575

117,459

10,516

Other

45,28945,800-511

41,6633,624

11,75911,300459-5,224

16,98312,123

11,700423-1,024

13,148

-364

-400

36

-4,199

3,834

1.2%

-

-

-

-

Depreciation

33,35432,400954

35,073-1,719

EBITDA

45,11343,7001,413

29,84915,264

Capital Expenditures

24,39826,600-2,202

24,425-27

Unit: Millions of yen

Operating Income

Railways
Other
Operating Income
ROA

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ChangeBus and taxi business -211,
Freight business -268

Bus and taxi business -97,
Freight business ＋133

FY2020Results

Change7

Ⅰ．FY2021 Business Results ― Railway Business
Number of Passengers Passenger Revenue
Tobu Railway Lines
Number of Passengers(Unit: 1 Million people)

FY2021Results

FY2021
Plan

Tobu Railway Lines
Passenger Revenue

FY2020Results(Unit: Millions of yen)

FY2021Results

FY2021Plan

FY2020Results

Commuter Passengers

483

488

459

Commuter Passengers

53,20953,77851,893

Non-Commuter
Passengers

252

249

218

Non-Commuter
Passengers

59,246

58,21249,851

4

4

3

3,296

3,099

2,419

735

737

677

112,455

111,991

101,744（LimitedExpress）
Total（LimitedExpress）
Total* Non-commuter passenger revenue includes limited express fee and seat reservation fees.

Results

Commuter revenue vs. FY2018▲10.0%▲15.0%▲10.0%▲18.2%▲18.1%▲18.1%▲20.0%▲25.0%

Plan

Non-commuter revenue vs. FY2018▲15.0%▲20.0%▲20.3%▲22.4%▲24.8%▲22.0%▲22.5%▲25.0%▲24.2%▲30.0%▲30.0%▲35.0%▲35.0%▲40.0%▲40.0%▲45.0%▲45.0%▲31.4%▲33.5%▲39.6%JanFeb

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Mar

Jan

Feb

Mar

8

Ⅰ．FY2021 Business Results― Leisure

Unit: Millions of yen

FY2021Results

FY2021
Plan

Revenue fromOperations

108,311

105,800

2,511

39,05569,256

Hotel

11,87912,700

-821

7,205

4,673

SKYTREE

5,829

5,600

229

4,814

1,015

Other

90,60287,5003,102

27,03563,565

Operating
Income-1,182-2,7001,518-18,484

17,301

Hotel-7,105-6,700-405-9,337

2,232

SKYTREE-740-1,000260-1,679

938

Other

6,663

5,000

1,663

-7,467

14,129Operating
Income ROA

-

-

-

-

-

Depreciation

6,722

6,700

22

6,499

223

EBITDA

5,540

4,000

1,540

-11,985

17,525

Capitalexpenditures

1,243

1,500

-257

9,725

-8,482

Number of visitors
FY2021（Unit: 1 Million people） Results

SKYTREE

104

ChangeFY2021Plan

FY2020Results

96

78

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FY2020Results

Notes

Amusement parks and tourism ＋104,
Sports ＋51, Travel ＋3,455,
Food -164

Amusement parks and tourism ＋165,
Sports ＋93, Travel ＋1,521,
Food -94

ChangeMain Hotels
Occupancy Rate

FY2021Results

FY2021Plan

FY2020Results

Main Hotels
Percentage of
foreign nationals

FY2021Results

FY2020Results

CY Ginza

34.8%

33.4%

16.2%

CY Ginza

2.5%

4.8%

AC Ginza

23.8%

25.4%

11.6%

AC Ginza

5.7%

4.3%

Kinshicho 38.7%

41.6%

15.4%

Kinshicho

0.8%

0.5%

Narita

65.0%

30.3%

Narita

7.6%

12.4%

70.4%

9

Ⅰ．FY2021 Business Results
Unit: Millions of yen

Revenue fromOperations

FY2021Results

FY2021Plan― Real Estate

ChangeFY2020Results

Notes

Change62,203

61,1001,103

54,228

7,974

Leasing business

37,66336,700963

38,149-485

SKYTREE TOWN

9,646

9,600

46

9,687

-41

Subdivision business

14,89314,800

93

6,391

8,501

Operating Income

15,55914,600959

13,702

1,856

Leasing business

11,788

11,200588

11,76225

SKYTREE TOWN

1,364

1,200

164

867

497

Subdivision business

2,406

2,200

206

1,072

1,334

4.5%

-

-

4.0%

0.5P

Depreciation

10,304

10,400-96

10,120184

EBITDA

25,86325,000863

23,822

2,041

Capital expenditures

8,007

8,600

-593

9,742

-1,735

FY2021Results

FY2021Plan

FY2020Results

Operating Income
ROA

Number of visitors(Unit: 1 Million people)

SKYTREE TOWN

FY2021Results

FY2021Plan

FY2020Results

Number of Units Sold

2,052

2,060

1,626

Detached houses

25

25

15

Condominiums

728

729

626

Detached houses

25

25

15

Condominiums

320

322

129

Unit:1unit

Number of Units Sold
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10

Ⅰ．FY2021 Business Results
FY2021Results

FY2021
Plan

136,640

136,600

Department stores

49,732

Supermarket

Other

―

Retail Distribution
FY2020Results

Change40

216,253-79,612

49,100632

119,288-69,555

74,94975,600-651

83,115-8,166

11,958

11,90058

13,849-1,892-3,976-4,500524-5,384

1,408-4,175-4,600425-5,953

1,777

Supermarket

242

300

-58

1,193

-951

Other

-43

-200

157

-624

581

-

-

-

-

-

Depreciation

3,606

3,600

6

3,410

196

EBITDA

-370

-900

530

-1,974

1,604

Capital expenditures

3,577

4,700

-1,123

4,085

-508

Unit: Millions of yen

Revenue fromOperations

Operating Income

Department stores

Operating Income
ROA

Change in Sales at
Major Department
StoresChangeNotes

FY2021 Results
FY2021 Plan
vs. Previous Year vs. Previous Year

Ikebukuro

10.7%

10.1%

Funabashi

9.8%

9.6%

Utsunomiya

9.3%

12.7%

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11

―

Ⅰ．FY2021 Business Results
Unit: Millions of yen

FY2021Results

FY2021
Plan

Change

Other
Notes

FY2020Results

ChangeRevenue fromOperations

89,497

92,700-3,20388,863633

Operating Income

3,526

2,600

926

2,876

650

Operating Income
ROA

1.4%

-

-

1.2%

0.2P

Depreciation

1,581

1,700

-119

1,560

21

EBITDA

5,107

4,300

807

4,436

671

Capital expenditures

1,945

2,600

-655

1,473

472

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12

Ⅱ．FY2022 Plan

― Restructuring of main business

March 2022

April 2022

Transportation

Transportation

LeisureSports

LeisureFoodParking

Real Estate

Leasing businessTrading company ･Retail

RetailOther
Distribution

Other

Security ・ Insurance

Other

Trading company ･Retail …
Parking…

RetailDistribution

Other

Tobu Shoji Co.,Ltd.、TOBU LANDSYSTEM CO.,LTD.、Tobu Foods Service Co.,Ltd.、
Tobu Foods System Co.,Ltd.、Tobu Energy Support Co., Ltd.

Nihon Parking Building Service Co., Ltd、SOGO PARKING SERVICE Co.,Ltd.、UTSUNOMIYA PARKING SERVICE CO.,LTD.

Security …
InsuranceRealEstateTobu Building Management Co., Ltd.、TOBU SECURITY Co.,Ltd.

…

TOBU Insurance Service Co.,Ltd.、TOUEI SANGYO CO.,LTD.

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13

Ⅱ．FY2022 Plan

― Anticipated revenue of main business
FY2022 Plan
Gentle recovery in demand
expected as no social
restrictions with declaration ofstate of emergency

OverallTransportation
Railways

FY2021

AnnualCommuter passengers
Business commutation
School commutation
Non-Commuter passengers

LeisureResults

Social restrictions withdeclaration of state of
emergency

Annual
-18%

-20%

-17%

-23%

-13%

-25%

AnnualAnnualHotel

Revenue from major hotels

-29%

-63%

SKYTREE

Number of visitors

-47%

-71%

Other

Travel volume

-27%

-70%

Retail Distribution
Department stores

AnnualGoods sales

AnnualDowntown stores

-5%

-24%

Suburban stores

-5%

-19%

*Comparison with FY2019

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14

Ⅱ．FY2022 Plan ― Consolidated statement of income
FY2022Plan

FY2021Results

Revenue fromOperations

558,000

506,023

51,977

Transportation ＋13,436, Leisure ＋29,589, Real Estate -2,103,
Retail Distribution ＋29,760, Other-11,597

Operating Income

33,00024,732

8,268

Transportation ＋5,341, Leisure ＋1,382, Real Estate -2,059,
Retail Distribution ＋4,976, Other-926

Recurring Income

29,00027,406

1,594

Profit Attributable to
Owners of Parent

18,00013,453

4,547

5.9%

4.9%

1.0P

1.9%

1.5%

0.5P

3.9%

3.0%

0.9P

Unit: Millions of yen

Ratio of Operating
Income to Sales
Operating Income
ROA※
ROE※

Change

Notes*Operating income ROA = Consolidated operating income/{(Beginning total assets + Ending total assets)/2}*ROE = Profit attributable to owners of parent/{(Beginning equity + Ending equity)/2}

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15

Ⅱ．FY2022 Plan
Unit: Millions of yen

EBITDA― Consolidated Cash Flow Plan
FY2022Plan

FY2021Results

Change86,20080,302

5,898

Operating Income

33,00024,732

8,268

Depreciation

53,20055,570-2,370Interest-bearing debt balance

808,000

808,507-507

Interest-bearing debt/EBITDA
multiple

9.4

10.1

-0.7P

67,80039,172

28,628

Capital expenditures

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Notes

16

Ⅱ．FY2022 Plan

― Transportation

FY2022Plan

FY2021Results

186,700

173,264

13,436

Railways

139,300

127,975

11,325

Other

47,40045,2892,111

17,10011,7595,341

Railways

16,00012,123

3,877

Other

1,100

-364

1,464

1.7%

1.2%

0.5P

Depreciation

30,70033,354-2,654

EBITDA

47,80045,113

2,687

Capital expenditures

39,10024,39814,702

Unit: Millions of yen

Revenue from Operations

Operating Income

Operating Income ROA

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

Commuter
Passengers
Non-Commuter
Passengers（LimitedExpress）

Total

FY2022Plan

FY2021Results

ChangeNotes

Bus and taxi business ＋1,911, Freight business ＋268

Bus and taxi business ＋1,797, Freight business -333

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

Change

499

483

16

284

252

32

5

4

1

783

735

48

Commuter
Passengers
Non-Commuter
Passengers（LimitedExpress）

Total

FY2022Plan

FY2021Results

Change54,94753,2091,738

68,782

59,246

9,536

4,761

3,296

1,465

123,730

112,455

11,275* Non-commuter passenger revenue includes limited express fee and seat reservation fees.

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17

Ⅱ．FY2022 Plan

― Leisure

FY2022Plan

FY2021Results

137,900

108,31129,589Travel

101,400

74,95526,445Hotel

18,50011,8796,621

SKYTREE

8,100

5,829

2,271

Other

9,900

15,647-5,747200-1,182

1,382

Travel

1,000

5,821

-4,821Hotel-2,900-7,105

4,205

SKYTREE

1,100

-740

1,840

Other

1,000

841

159

Operating Income ROA

0.1%

-

-

Depreciation

6,600

6,722

-122

EBITDA

6,800

5,540

1,260

Capital expenditures

3,500

1,243

2,257

Unit: Millions of yen

Revenue from Operations

Operating Income

Number of visitors（Unit: 10,000 people）

SKYTREE

ChangeFY2022Plan

FY2021Results

Change

191

104

87

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Notes

Amusement parks and tourism -4 , Sports -1,551 （Decrease
from restructuring of business）,
Food -5,236（Decrease from restructuring of business）

Amusement parks and tourism -265 , Sports ＋207 ,Food ＋194

Main Hotels
Occupancy Rate

FY2022Plan

FY2021Results

ChangeCY Ginza

72.2%

34.8%

37.4P

AC Ginza

63.7%

23.8%

39.9P

Kinshicho

85.3%

38.7%

46.6P

Narita

68.5%

70.4%

-1.9P

18

Ⅱ．FY2022 Plan
Unit: Millions of yen

FY2022Plan― Real Estate
FY2021Results

Change60,10062,203-2,103

Leasing business

36,60037,663-1,063

SKYTREE TOWN

10,2009,646

554

Subdivision business

13,30014,893-1,593Operating Income

13,50015,559-2,059

Leasing business

9,600

11,788-2,188SKYTREE TOWN

1,500

1,364

136

Subdivision business

2,400

2,406

-6

Operating Income ROA

3.9%

4.5%

-0.6P

Depreciation

10,30010,304-4

EBITDA

23,80025,863-2,063

Capital expenditures

17,700

8,007

9,693

Revenue from Operations

Number of visitors(Unit: 10,000 people)

SKYTREE TOWN

FY2022Plan

FY2021Results

Change

2,577

2,052

525

Notes

FY2022Plan

FY2021Results

ChangeDetached houses

40

25

15

Condominiums

546

728

-182

Detached houses

27

25

2

Condominiums

294

320

-26

Number of Units Sold
Unit:1unit

Number of Units Sold
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19

Ⅱ．FY2022 Plan

― Retail Distribution

FY2022Plan

FY2021Results

Revenue from Operations

166,400

136,640

29,760Department stores

58,20049,732

8,468

Supermarket

77,80074,949

2,851

Other

30,40011,95818,442

1,000-3,976

4,976

Department stores

500-4,175

4,675

Supermarket

500

242

258

0

-43

43

Operating Income ROA

0.8%

-

-

Depreciation

4,100

3,606

494

EBITDA

5,100

-370

5,470

Capital expenditures

5,400

3,577

1,823

Unit: Millions of yen

Operating Income

Other

Change in Sales at
Major Department Stores

ChangeNotes

Increase from restructuring of business

FY2022 Plan
vs. Previous Year

Ikebukuro

18.7%

Funabashi

18.3%

Utsunomiya

11.9%

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20

Ⅱ．FY2022 Plan
Unit: Millions of yen

FY2022Plan― Other
FY2021Results

ChangeRevenue from Operations

77,90089,497-11,597

Operating Income

2,600

3,526

-926

Operating Income ROA

1.0%

1.4%

-0.4P

Depreciation

1,500

1,581

-81

EBITDA

4,100

5,107

-1,007

Capital expenditures

2,100

1,945

155

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Notes

Decrease from restructuring of business21

III. Medium-Term Business Plan
(Changes in Business Environment and Future Direction)

Changes in business environment surrounding Tobu Group

Temporary

Establishment ordevelopment

Changes in social structure✓Development of digital technology✓Expansion of shift to cashless transactions andonline operations✓Decrease in business commutation demand✓Progression of depopulation/low birth rate andaging society✓Increase in climate change/natural disasters✓Expansion of employment of women/senior citizens✓Decrease in school commutation✓Cessation of inbound tourism

Changes in individual awareness and lifestyles✓Expanded use of online services✓Increase in demand for suburban housing✓Diversification of consumer needs✓Reacknowledgement of importance of humanconnections/family✓Increase in environmental awareness✓Increase in health consciousness✓Subscription, sharing services✓Social distancing✓Voluntary avoidance of going out/consumption✓Demand for domestic travel until recovery inoutbound tourism*Change greatest in bold items

Business environment has changed significantly, and uncertainty will continue
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22

III. Medium-Term Business Plan
(Changes in Business Environment and Future Direction)

Policy for Medium-Term Business Plan

✓Promote business structure reform focused on controlling costs in response tochanges in business environment and strengthen management structure to
generate steady profits✓Expand profitability through new business model utilizing digital technology anddata✓Take advantage of business areas such as suburbs where value is being
reconsidered, characteristics of railway lines, and management resources,
approach social challenges as needs, and realize expanded revenue and humanfriendliness in a society in which people and communities shine together

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III. Medium-Term Business Plan
(Changes in Business Environment and Future Direction)

Direction and vision of Tobu Group management
Tobu Railway strengths
Favorable accessconnecting cities
and suburbs

Sharing/
succession oftime and assets
Partnerships withmunicipalities and local
communities
Tobu plays a “connecting”
role

Flat geography
and rich naturalenvironment

2 or 3 generations living close together
2 assets at same station
is ideal
Living near and helping
each other

One of Japan’s
leading tourist
centers

Living environment
with spacious floor
plans

Family members
helping each other out
Creating comfort andquality of life

Step 1: Promotion of cooperation between family members

Cooperation including
community members
Creating quality of life

Step 2: Creation of system of cooperation including community members

Step 3: Expansion to whole railway line (eventually shifting to national model)
Creation of living environments full of comfort and quality of life
Communities in which all generations can experience fulfilling lives

Realization of human friendliness in a society in which people
and communities shine together
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III. Medium-Term Business Plan
(Changes in Business Environment and Future Direction)

Priority strategies
2022

2023

2024

Strengtheningof Management
Structure
Secure consolidated recurringincomeReduce interest-bearing debt

2025

New
growth stage
Shift to robust management structure capable ofhandling changes in business environment

Business structure reform and restructuring of businesspromotion system✓Lower ratio of fixed costs to revenue in railway business to 70% in FY2019 and reduce
personnel at head office by 30%✓Review/consideration of railway revenue based on demand and social climate✓Restructuring and review of operational structure at group companies

Expand profitability through new business model✓Enhancement of revenue based on digital customer contact points✓Promotion of businesses that increase permanent residents along railway lines and create
nonresident/connected populations✓Cultivation/strengthening of profit-making non-railway businesses-

Sustainable
development

Next Medium-TermBusiness Plan

✓ Robust management structure✓ Flexible organization capable ofadapting to changes in businessenvironment✓Improvement of value along railway
lines and further increasing ofresident/nonresident populations✓Expansion of profitability in retailand real estate businesses

Expand revenue by promoting businesses that address social
challenges as needs

Realization of human friendliness in a society in which people and communities shine together✓Sustainable development of local communities✓Brand development and revenue production through reduction of environmental burden✓Improvement of diverse employee skills and capabilities
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III. Medium-Term Business Plan
(Business structure reform and restructuring of business promotion system)

Business structure reform in railway business
Automation utilizing digital technology/Promotion of proper scale and improvement of safety✓Promotion of plan to expand one-man operation sections such as
SKYTREE LineFY2019✓Introduction of remote system for stations
revenue✓Optimization of personnel for maintenance operations throughin railway
introduction of Remote* and facility monitoring systembusiness✓Optimization of carrying capacity through Remote* and utilization ofticket gate data

Fixed costs *80%* Power expenses

70% calculated basedon FY2019 unit
prices→ Promotion of shift to 5 cars on URBAN PARK Line (currently 6 cars), etc.

✓Promotion of verification for realizing Daishi Line GoA3.0 auto driving✓Promotion of platform door installation*A system that utilizes data from cars in operation for timetable optimization, energy conservation, andmaintenance labor saving

Company-wide promotion of efficiency✓Improvement of productivity through operational
review and utilization of digital technology

FY2019FY2024

Ratio of fixed costs of around 70% to beachieved ahead of schedule

Freight charges and fare initiatives based onchanges in railway users✓Review of freight charges and fees, including
introduction of barrier-free fare system at railway
stations (around spring of 2023)✓Verification of peak
distribution effect fromintroduction of off-peak miles
May 9, 2022 launch

Improvement of safety and control of costs through utilization of digital technology
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III. Medium-Term Business Plan
(Business structure reform and restructuring of business promotion system)

Enhancement of management structure through restructuring and review ofoperational structure at group companies

PolicyFunctional enhancement and increased efficiency through restructuringof group companies
Take full advantage of area and business category
characteristics

Leverage benefits of scale, human resources, and capital
Introduce services using new technologies

Expansion of businessby creating new demand Consideration of retailbusiness integrations
and development of new
business formats
 Enhancement ofcorporate sales throughintegration of trading
company functions

Enhancement ofbusiness by improving
efficiency
 Integration of and withdrawal
from bus/taxi sales offices
 Integration of
security/parking lot
management operations
 Integration of insurance
agency operations
 Streamlining of hotelbusiness operations

Business
restructuring basedon profitability andGroup synergy(Business liquidationand streamlining)

Business restructuring
to capture changes indemand and needs
 Shrinking of/withdrawal
from banquet/
restaurant/bathbusinesses Restructuring of travelbusiness counter storesfor enhancement ofregional revitalization
agency function

Structural reform in hotelbusiness〇Lowering of break-even point✓Shrinking of wedding ceremony
and banquet and beveragedivisions✓Streamlining of operations
through consolidation of lodging
reservation and purchase
management
Variable
cost
Fixed
costs

Precoronavirus
plan*

Variable
cost
Fixed
costs
FY2024*Full-year basis after opening of hotels in
FY2020Lower break-even point around
15% by end of FY2024(Compared to before coronavirus)

Realization of robust management structure and expansion of revenue
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III. Medium-Term Business Plan
(Expansion of Profitability through New Business Model)

Enhancement of profitability based on digital customer contact points

Centralization of Group customer informationin TOBU POINT
Further enhancementof service

Enhancement of marketing through utilization of Tobu Group customer
data platform(Tobu Customer Data Platform) TOBU POINT app members: 500,000 (FY2024 target)
Enhancement of customer referralusing digital tools

Development of new channels/products

Creation of new services and customer experience value utilizing data
Enhancement of physical services and productsales through app utilization

Expansion of digital market(New channels)

MaaS

EC mall(To be introduced in FY2022)

Group sales targeted by digital marketing FY2024 target: 40.0 billion yen

Expand revenue through digital marketing
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III. Medium-Term Business Plan
(Expansion of Profitability through New Business Model)

Creation of nonresident/connected populations through railway line revitalization
Maximization of customer attraction
in Nikko/Kinugawa area

Development of MaaS to uncoverdemandImprovement of appeal of
SKYTREE TOWN

■Introduction of new limited express
Spacia■Enhancement of NIKKO MaaS functions■SKYTREE TOWN 10th anniversary✓To be introduced in 2023

✓Installation of various seats, including privaterooms with a view and lounging type seats, anda cafe counter✓Expansion of functions on March 16, 2022

Tourist tickets for 24 new products available forpurchase✓Activity use, limited express ticket purchasing, foreign
language support, and other functions to beenhanced one at a time

✓Creation of excitement for 10th anniversary
Customer attraction through commemorative
measures
Attraction of appealing shops■Expansion into multiple areas✓Multifaceted development with measures tailored toarea characteristics✓Consideration of expanding coordination withmunicipal services utilizing digital technology■Making Kinugawa Line a tourist line

✓Realization of triple SL operations✓Promotion of collaborative initiatives with
communities such as illumination of all lines andflower gardens✓Promotion of bicycle tourism

Tourism-type
MaaS✔ Kawagoe✔ Asakusa/Tokyo
Skytree Town

Suburbantype MaaS
Consideration ofdevelopment inareas with highvolume of daily use

Uncover demand for domestic tourism and capture demand when inboundtourism recovers
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29

III. Medium-Term Business Plan
(Expansion of Profitability through New Business Model)

Promotion of businesses aiming to increase permanent residents and enhancement ofrailway network through railway line development
Promotion of development of hub
areas■Ikebukuro
Promote integrated development of our
independent and cooperative businesses tocreate new appeal✓Planned schedule
FY2022: Urban planning decision
FY2023 Business approval/Establishment ofpartnership
Mid-FY2025
Rights transfer approval
FY2026 or later Start of construction

Development of detached houses/rental
housing addressing needs
Business development utilizing strengths of Tobu lines in
anticipation of lifestyle changes■Early roll-out of Solaie + Work towhole lines■Houses built for sale

⇒Develop 50 locations as necessary infrastructure(targeting end of FY2024)

Attract customers from wide area aiming forsettlement of 3 generations along railway line
・ Nagareyama Otaka no Mori (FY2022)
・ Dokkyodaigakumae (FY2022*)・ Shinkamagaya (FY2023)
・ Wakaba (FY2023)
・ Yakuendai (FY2024)*Eastern block only.
Western block to be completed in FY2026
Solaie Terrace■Rental housing(Dokkyodaigakumae /Illustration)

・ Gamo (FY2022)
・ Tokiwadai (FY2024)
・ Daishimae (FY2024)■Asakusa/Tokyo Skytree area

✓Promotion of development plan in anticipationof completion of overhead crossing✓Further promotion of area integration as
biggest hub of eastern area of Tokyo

Solaie I’ll Koshigaya Gamo
(Illustration)

Enhancement of new transportation
network■Consideration
anticipating
extension of Tokyo
Metro YurakuchoLine (No. 8 line)⇒Improvement of railway
line appeal as district
behind coastal area
Consideration aiming for
maximization of network
effectTOBU SKYTREE
Line

No.
line

Aim for new influx with singles as main target

Illustration provided by Ikebukuro Station west area urban
redevelopment preparation partnership

Development of satellite offices

8■Launch of direct operations withSotetsu Line and Tokyu ShinYokohama Line (spring 2023)

Develop businesses, taking advantage of opportunities presented by changing
work styles and needs
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30

III. Medium-Term Business Plan
(Expansion of Profitability through New Business Model)

Cultivation/strengthening of profit-making non-railway businesses
Town development offering comfortable living for 3 generations incollaboration with other industries■Dokkyodaigakumae✓Strategic model case for future town
development along railway lines
Development offering comfortable living for 3
generations in collaboration with existing
facilities, including residences, businesses,
cultural facilities, and educational facilities
・Commercial facilities: To be opened in spring2023→ Merchandise, food, restaurants, services(Total floor area of approx. 0.8 ha)

・Detached houses: Launch of sales in spring2024→ 255 lots (approx. 4.6 ha of residential land)■Complex development at Minamikurihashi✓Connecting people to people, Tokyo tonature, etc.
Sustainable town development through industry
government academia collaboration
・Detached houses, commercial facilities, lifestylesupport facilities (Licensed day care centers, nursing
homes, etc.)
Detached houses:

Launch of phase 1 sales
in July 2022
Commercial facilities: To be opened on May 28,
2022

Further consideration ofdeveloping major bases outsiderailway lines■Nihonbashi 3-chome Plan
■Ariake 1-chome Development
Plan, etc.

Further expansion of profitability
in real estate business■Effective utilization of owned
assets⇒Investment in systematic value improvement
based on location and profitability■Consideration of asset turnoverbusiness⇒Acquire development profit while improving
capital efficiency

Expansion of efforts into solution
business■Business development utilizing
digital technology and businessknow-how

Expand existing business areas and cultivate/enhance profit-making businesses
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31

III. Medium-Term Business Plan
(Expansion of Revenue by Promoting Businesses That Address Social Challenges as Needs)

Aiming for sustainable development of Tobu Group and local communities
Creation of comfortable living by
having parents and children live
close together

Implementation of TOBU POINT childraising support and permanent
residence promotion program■Child raising support program✓Essentially free school commutation forelementary school students
Full price returned to commuter pass holders in formof points on TOBU Card
✓Points returned for children’s fares on extended
breaksUpdate to child raising support measures implemented
since FY2018✓Provision of TOBU POINT to TOBU Group
property buyers/renters✓Consideration of TOBU POINT return topromote interfamily movement
in collaboration withmunicipalities

Creation of living comfort andpurpose through mutual help
■Permanent residence promotion program✓School commutation pass subsidies incollaboration with municipalities
Launched in Tatebayashi City and Tochigi City
Consideration of roll-out to municipalities along railway
lines✓Consideration of perks for long-term commuter
pass holders✓Granting of TOBU POINT in regional activities
Satoyama experience program in Tochigi Pref.
✓Consideration of use of the Company’s facilities
in mutual help between senior citizens andthose raising children

Support for moving torailway line
✓Support for moving in municipality
in collaboration with Saitama
Prefecture
Promotion of moving cycle/migrationin urban development areas such as
Minami-kurihashi✓Moving/migration inquiries
Utilization of Reikas real estate sales
support system operated by TOBUREAL ESTATE

Lifestyle support businessfor residents living along
railway line
✓Expansion of kids sports business
Enhancement of kids programs,
invitation of after school care centerswith sports programs, sports
instruction contracts at public schools✓Consideration of lifestyle service
support platform
Consideration of platform for providing
lifestyle-related services utilizing
TOBU POINT

Acquire new revenue while solving social challenges
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32

III. Medium-Term Business Plan
(Expansion of Revenue by Promoting Businesses That Address Social Challenges as Needs)

Brand development and revenue production through reductionof environmental impact
Nikko area initiatives for establishing international eco resort brandEnhancementof tourist attraction✓NIKKO MaaS
✓Cooperation with outside
parties✓New limited express✓NIKKO MaaS

Enhancement of attractiveness of Nikko area through ethical travel*
Renewable energy■Essentially 100% renewable energy train operations (starting April 1, 2022)✓Solar power generation facilities owned by Tobu Group✓Utilization of FIT Non-Fossil Fuel Certificates

NIKKO MaaSNew limited express Spacia✓Japan’s first environmentallyfriendly tourism MaaS
✓Promotion of use of public
transportation✓Ongoing enhancementof functions

Environmental
conservation

Decarbonization✓New limited express✓Reduce CO2 emissions up toaround 40%*
*Compared to 100 series
Spacia✓Cooperation with outside
partiesEnhancement of public-private collaboration✓Enhancement of branding in collaboration
with Ministry of the Environment andTochigi Pref.
✓Cooperation with Nikko City on 2050 Zero
Carbon City declaration✓Collaboration with outside companies oncarbon neutrality

Green Bonds✓Procure funds for introducing new limited
express trains, etc. via Green Bonds (a firstfor the Company)*Ethical travel: Planned travel aiming to create a sustainable society

Become a role model for a decarbonized society
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33

III. Medium-Term Business Plan
(Expansion of Revenue by Promoting Businesses That Address Social Challenges as Needs)

Improvement of diverse employee skills and capabilities
Promotion of diversity

Cooperation with startups✓Promotion and training of human resources withdiverse knowledge and values capable of responding
to changes in lifestyles and business environment✓Collection of co-creation ideas utilizing Tobu Group tourism
resources and support for field tests and implementation■TOBU Open Innovation Program✓Realization of diverse work styles supporting activeroles by diverse human resources✓Consideration of field tests for 10 of 125 total entries✓Part 1: Koedokawagoe travel utilizing receipts
Part 2: Launch of field tests for Asakusa/TOKYO SKYTREETOWN® AI Digital Map
Improvement of accessibility of tourist sites along railway lines throughDX and verification of customer needs

Create new value from diverse perspectives and enhance earning power

Promotion of health management✓Improvement of productivity through health maintenance allowing employees to work energetically✓Acquisition of outstanding human resources through recognition as 2022 Large Enterprise with
Outstanding Health and Productivity Management

Increase creativity and tie that into creation of new value and business opportunities

34III. Medium-Term Business Plan
TargetIndicator

TargetInterest-bearing debt balance

Around 800 billion yen at end of FY2024

Interest-bearing debt/
EBITDA multiple

7x range at end of FY2024, reaching 6x
range ASAP

Shareholder return

Aim to return dividends of 40 yen per share
ASAP, and consider return throughpurchase of treasury stock

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[Reference Material]
Anticipated Business Environment and Main Business Revenue[Anticipated business environment*]✓Impact of COVID-19 will gradually subside, restrictions on movement will be eased to an extent, and consumer behavior will gradually
recover✓Business commutation demand and other railway business use will decrease due to telecommuting, etc. and settle at around 85% of
pre-pandemic level✓Inbound tourism will gradually recover starting in FY2022 and return to FY2019 level by end of FY2024✓Power expenses and commodity prices will stay at FY2021 level*Based on information currently available to the Company and certain assumptions judged to be reasonable

Railway

Non-Commuter Passengers: Impact ofLeisurepandemic will remain, with passengers remaining at level at end of FY2022(around 85% of pre-pandemic level)
Commuter Passengers: Decrease in commutation will continue, with passengers remaining at around 80% of pre-pandemic level
School Commutation: Impact of pandemic will be resolved

Hotels

Revenue at main hotels will recover to around 70% of pre-pandemic levels in FY2022, 80% in FY2023, and 100% in FY2024 withrecovery of inbound tourism and marketing measures

SKYTREE

Although there will be a difference in the speed of recovery in Japan and overseas, visitors will return to around 50% of prepandemic levels in FY2022, 60% in FY2023 and 80% in FY2024 thanks to the effects of marketing measures

TravelTravel volume is anticipated to recover quickly in Japan, but the recovery in overseas travel will take more time. Overall, it isexpected to recover to pre-pandemic levels in FY2024.

Department
stores

Anticipated revenue in main businesses

Inbound sales at downtown stores will increase gradually, but lower domestic demand will continue to an extent. In FY2023, it will
recover to around 90% of pre-pandemic levels where it will remain.

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[Reference Material]
Expenditures, etc. based on anticipated business environment※
Unit:100Millions of yen

Revenue from Operations

FY2021Results

FY2022Plan

FY2023Plan

FY2024
Plan

５，０６０

５，５８０

５，８１５

６，０４２

Operating Income

２４７

３３０

４５８

５３８

Recurring Income

２７４

２９０

４２０

５００

Profit Attributable to
Owners of Parent

１３５

１８０

２７０

３３５

Depreciation

５５６

５３２

５３４

５３９

EBITDA

８０３

８６２

９９２

１,０７７

Interest-bearing debt
balance

８，０８５

８，０８０

８，０７８

８，０３６

Interest-bearing
debt/EBITDA multiple

１０．１

９．４

８．１

７．５

Capital expenditures

３９２

６７８

７７８

７６５

※ See page 36 for the anticipated business environment
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[Reference Material]
Operating revenue plan by segment for FY2022-FY2024
Segment

Unit:100Millions of yen

FY2022Plan

FY2024Plan

FY2023
Plan

1,867

1,967

1,972

1,393

1,467

1,464

1,379

1,454

1,600

Travel

1,014

1,035

1,122

Hotel

185

218

257

SKYTREE

81

95

112

601

615

659

Leasing business

369

398

422

SKYTREE TOWN

102

104

106

Subdivision business

133

116

134

1,664

1,733

1,760

Department stores

582

594

598

Supermarket

778

825

838

779

777

802

Elimination

▲710

▲731

▲751

Total

5,580

5,815

6,042

Transportation
Railways
LeisureReal Estate

Retail Distribution

Other

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38

[Reference Material]
Operating Income plan by segment for FY2022-FY2024
Segment

Unit:100Millions of yen

Transportation

FY2022Plan

FY2024Plan

FY2023
Plan
171

259

274

160

237

249

2

36

86

Travel

10

13

18

Hotel

▲29

▲6

23

SKYTREE

11

17

31

135

131

141

Leasing business

96

102

113

SKYTREE TOWN

15

18

20

Subdivision business

24

11

8

10

19

22

Department stores

5

11

12

Supermarket

5

7

8

26

27

29

Elimination

▲14

▲14

▲14

Total

330

458

538

Railways
LeisureReal Estate

Retail Distribution

Other

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39

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

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

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40