FY03/2024

Financial Results
Briefing
May 20, 2024

Overview of FY03/2024
Financial Results
FY03/2024 Financial Results Briefing

FY03/2024 Financial Highlights

Orders exceeded the previous period as the firm construction demand in the focus area wassteadily taken in. Building construction and civil engineering projects on hand progressed steadily.
The gross profit margin of completed construction improved, contributing to operating profit andnet prof it.

OperatingincomeProfit (loss)
attributable to ownersof parent

billion yen

billion yen

billion yen－1.1 ％+59.7％+38.5％

OrdersNet Sales

278.3

285.6

Y oY

Y oY

（non-consolidated）

billion yen+ 3.9 ％

External
environment

8.1
Y oY

7.2
Y oY

• D e mand re ma ine d s t rong. Th e v ol ume of i n dust ry -wide con s t ru ction p roje ct s
on h and has ri s e n t o a h i gh l e v e l , a n d i t t e nde d t o e a s e t h e comp e t i tiv ee n v ironment.
• O v e rt i me work ca p re g u l ations and l abor s h ort age s h ould b e a d d re s s ed
u rg e ntly . L a b or cos t s ma y con t inue t o ri s e .

Building
construction• Altho u gh m a n y o f th e c o n s t r u c tio n p r o j e c t s o n h a nd w e r e a f f e c t e d b y p r ic e in c r eas e s , p r o f it w a s
m a intained th r o ugh o r ig in a lity a n d in g e nuity a t t h e s it e .

Civilengineering• The gross profit margin of completed construction increased thanks to the improved profitability of our area ofspecialty such as railway and tunnel construction, in addition to higher revenue and profit.

Real estate• Profit fell due to a reactionary decrease from the previous fiscal year when there were sales of several income
properties. A decrease in gross profit from the real estate business was limited thanks to decreased provision
for loss associated with withdrawal from development projects recorded in previous years.

subsidiary• Ea rnings o f o v er s eas s u b s id iaries im p r o v e d c o m p a r e d w it h a t e m p o r a ry d r o p in the p r e v io us
p er io d . T h e c o n s tr u c t io n r e n e w al b u s in es s a ls o p e r f o r m e d s t e a d ily.
Copyright(C) Tokyu Construction. All rights reserved.

1

Consolidated Financial Results
Sales achieved the previous fiscal year’s level thanks to steady progress centered on large-scaleconstruction work. Operating profit grew, despite an increase in selling, general andadministrative expenses.
An increase of 1 y e n p e r s h a r e b a s e d o n t h e d i v i d e n d p o l i c y o f a “ D O E o f a t l e a s t 4 . 0 % . ”（Millions of yen）

FY03/23

Ratio

FY03/24

Ratio

YoY

Orders(nonconsolidated)

267,792―

278,341―+3.9%+10,548

Net Sales

288,867―

285,681―(1.1%)（3,186）Gross profit

21,8797.6%

26,082

9.1%+19.2%+4,203

Selling, general andadministrative
expenses

16,771

5.8%

17,927

6.3%+6.9%+1,155

Operating income

5,107

1.8%

8,155

2.9%

+59.7%+3,047

Ordinary income

5,020

1.7%

9,736

3.4%

+93.9%+4,716

Profit (loss) attributableto owners of parent

5,245

1.8%

7,266

2.5%

+38.5%+2,020

Dividend per share

36yen

―

37yen

―

＋1yen
Copyright(C) Tokyu Construction. All rights reserved.

2

Factors Affecting Net Income
Profit grew due mainly to an increase in gross profit margin of completed construction,
foreign currency gains, and an increase in equity method return on investment.
＋2,020（Millions of yen）

（ subsidiary＋1,700）Decrease ingain on sale ofInvestment
securities

FY03/2023

完工総利益の増加+4,505
Increase incompleted
5,245
Construction
Profit attributablegross profit
to owners ofparentー2,446＋846

ー301

ー1,155+838

Decrease inreal estate
incomeIncrease in
SG&A
expenseIncrease in Increase in
Foreign equity method
Exchange Investment
gains
incomeー264

ー3

Increase intax expenses

Others

FY03/2024

7,266

Profit attributableto owners ofparent・ human capital investment
・We recorded R&D, digital and innovation costs

FY0 3 / 2 0 2 3

16,771FY0 3 / 2 0 2 4

17,927
Copyright(C) Tokyu Construction. All rights reserved.

3

Non-consolidated Financial Results

Completed construction sa les increa sed due to the stea dy progress in construction projects. The gross profit
margin of completed construction rose due to a n improvement in the profitability of civil engineering.
Profit wa s up, a bsorbing a n increa se in selling, genera l a nd a dministra tive expenses including human resource
investment for susta ina ble growth.

FY03/2023（Millions of yen）

FY03/2024

Rate of
ChangeResults

261,529

260,626

100％（0.3%】（903）

252,377

259,208―+2.7%+6,831

192,052

192,909

74.1％

+0.4%

+856

Civ il e ngineering

60,32566,299

25.4％

+9.9%

+5,974

Real estate sales

9,151
20,063

1,417
22,462

0.5％（Profit rate）8.6％（84.5%）+12.0%（7,734）+2,39817,22920,0347.7%+16.3%+2,804

13,778

13,795

7.2％

+0.1%

+16

3,450

6,238

9.4％

+80.8%+2,787

2,833

2,428

171.3％（14.3％）（405）

15,665

16,709

6.4％

+6.7%

+1,044

Operating income

4,398

5,752

2.2％

+30.8%+1,354

Ordinar y income

4,426

6,996

2.7％

+58.1%+2,570Net income

3,825

5,147

2.0％

+34.5%+1,321Net Sales
Completed
construction sales
Bu ild ing
c o n s t r u c tio n

Gross profit

Co m p le t e d
c o n s t r u c tio n gr o s s
p r o f it
Bu ild ing
c o n s t r u c tio n
Civ il e ngineering

R ea l e s t a te gr o s s
p r o f it
S e l ling, g e n e ral anda d minist rat ive
e x p e nse s

Ratio

YoY

Results

Copyright(C) Tokyu Construction. All rights reserved.

4

Non-Consolidated ／ Building construction（Completed
construction sales・Completed construction gross profit）

Steady progress in large-scale projects on hand from the previous period contributed to completed
construction sales. Although many of the construction projects were ordered amid severe competition for
profit or affected by price increases, profit was maintained through originality and ingenuity at the site.

Completed construction sales（Millions of yen）

Tokyu
group

192,052

184,407

Generalprivate558

Domestic
public（Millions of yen）

＋0.4%

Overseas

20,012

26,035897

Gross profit
ー0.0ptProfit margin ratio

192,90926,455

Profit margin ratio
16,000（Excluding individual factor)
996

14,00013,132

12.0%

13,778

13,79510.0%

12,0009.0%
8.0%

10,0008,000
151,271

165,936

156,270

7.1%

7.2%

7.2%

6.0%

6,000
4.0%

4,000
2.0%

2,000
6,542

5,205

9,186

FY03/2022

FY03/2023

FY03/2024

00.0%

FY03/2022

FY03/2023

FY03/2024

Copyright(C) Tokyu Construction. All rights reserved.

5Non-Consolidated ／ Building construction（Orders）
We received orders for targeted projects in our strong area steadily, considering our construction
capacity. Domestic public projects increased due to the orders received for multiple construction
projects including large-scale ones.

OrdersMain orders（Millions of yen）
Overseas

Tokyu group
General private＋19.2%

Domestic public

221,382
39,667

183,550
10,652

218,765
17,965

343

Name of construction

Tokyo Institute ofTechnology

Construction work for a new schoolbuilding and other constructions ofTokyo Tech High School of Science andTechnology (Ookayama)

The Doshisha

Construction of sports complex
buildings

Nansei Rakuen
Resorts Co., Ltd.

New construction of Aramanda
Hilltop Hotel (tentative name)

Mitsubishi Estate
Residence Co., Ltd./ SOTSU New construction under the project for
CORPORATION/ Chitose
Azabu-Nagasaka-cho, Minato Ward
Corporation

172,924
176,417

158

Ordered by

162,823

Mishima Station
South Exit East,
Block A, Area Urban
Redevelopment
Association
Clean Authority of TOKYO

10,224(4,927)

FY03/2022

9,730

FY03/2023

27,717

FY03/2024

Facilities associated with
Mishima Station South Exit
East, Block A, Area Type 1
Urban Redevelopment Project
New building construction

Construction work for the developmentof a central breakwater non-combustible
and bulky waste disposal facility

Place ofconstruction
Tokyo
Kyoto
Prefecture
Okinawa
PrefectureTokyo

ShizuokaPrefectureTokyo

FUKUOKAUNYU CO., SAPPORO TEIONUNYU CO.,
LTD.
LTD.

Hokkaido

Mitsui Fudosan Co.,Ltd.

New construction for Mitsui
Fudosan Logistics Park
Amagasaki I

Hyogo
Prefecture

ITOEN, LTD.

New construction of Second Factory
Kobe, ITO EN, Limited(tentative name)

Tokyu Land Corporation

New construction for Yoyogi
Park PFI Plan

Hyogo
PrefectureTokyo

Copyright(C) Tokyu Construction. All rights reserved.

6

Non-Consolidated ／ Civil engineering（Completed
construction sales・Completed construction gross profit）

Completed construction sales increased due to the steady progress in construction projects on hand at
the beginning of the period. The gross profit margin rose thanks to the improved profitability of ourarea of specialty such as tunnel and railway construction, in addition to an increase in completed
construction.

Completed construction sales（Millions of yen）

（Millions of yen）

＋9.9%

Overseas

Gross profit
Profit margin ratio

Tokyu group
General private

66,299Domestic public

56,886
4,349
4,517

14,19660,3254,521
5,036

10,5508,000 Profit margin ratio（Excluding individual
factor)

12.0%

6,238

10.0%

9.4%

6,000

8.0%

3,450

6,779

5.7%

4,000
13,686＋3.7pt

6.0%

5.7%

4.0%

14,671

2,000

2.0%

0.0%

0
33,82237,080FY03/2022

34,297

FY03/2023

FY03/2024

-2.0%

-4.0%

(2,000)-6.2%

FY03/2022

FY03/2023

FY03/2024(4,000)(3,530)

-6.0%

-8.0%

Copyright(C) Tokyu Construction. All rights reserved.

7

Non-Consolidated ／ Civil engineering（Orders）
Overseas sales fell due to a reactionary decrease from the previous year when there were sales from largescale ODA-related construction. With firm domestic demand due mainly to the measures for disasterprevention/mitigation and National Resilience, and a recovery in capital investment by railway companies,
we received orders steadily from our area of specialty such as tunnel and railway construction.

OrdersMain orders（Millions of yen）
Overseas

Ordered by

ー29.3%

Tokyu group
General private

84,242

Domestic public

22,45653,281

4,812

985
9,009

Hiroshima
Prefecture

Ministry of Land,
R5 Shin-omiya, Ageo Road,
Miyamae District, bridge foundation
Infrastructure,
Transport and Tourism Part 2 construction work

SaitamaPrefecture

Tokyo

Karabori River upstream rainwater
trunk line construction work

Tokyo

Tokyo

Seismic reinforcement
construction part 2 of Kasai
Water Recycling Center water
conduit and water treatment
facility

Tokyo

3,901

19,328
16,774

9,978

Chikuma River bridge

Uedadentetsu Co., Ltd. reinforcement construction

work (P3 Bridge Piers)

33,308

FY03/2022

37,644

FY03/2023

Harmony TMK(Tentative name) Construction
work for residential land and roaddevelopment under thedevelopment project (Parcel 10a-B)
in 5 banchi-5 Hanazono, Kutchancho and others

Tokyo Metro Co.,
Ltd.

Civil engineering work for
additional platform of Toyosu
Station31,639FY03/2024

Place ofconstruction

Ministry of Land,
FY2023 construction work for
Infrastructure,
Kidani Tunnel on the Akitsu Bypass
Transport and Tourism

59,575
7,260

Name of construction

TOKYUCorporation,
TOKYURailways

NaganoPrefecture
Hokkaido
Prefecture

Tokyo

Construction work to reinforce theretaining walls between Yoga
Station and Futakotamagawa
Tokyo
Station on the Den-en-toshi Line
Copyright(C) Tokyu Construction. All rights reserved.
(civil engineering
work)

8

Consolidated Balance Sheets
The equity ratio was at 37.8％, decrease of 0.4 percentage points compared with March
31, 2023. D/E ratio was 0.54 times due to an increase in borrowings.
As of March
31, 2023

As of March
31, 2024

187,892

206,541+18,648

28,70023,938(4,761)

32,571

34,045+1,473

Total assets

249,164

264,525+15,360

Liabilities

144,743

137,388

8,400

Total net assets（Millions of yen）

Current assets
Non-current
assetsInvestments andother assets

YoY

I n c r e a s e /assets
decrease factors− Current• Cash and deposits

ー26,591• Notes receivable, accounts
receivable from completed
construction contracts andother＋40,258− Liabilities• Notes payable, accounts
payable for construction
contracts and other

ー4,636(7,354)• Advances received on
construction contracts in• Progress

ー4,764

26,347+17,946• Electronically recorded
obligations – operating

ー4,80696,020100,789+4,769• Income taxes payable

ー1,923

Total liabilities
and net assets

249,164

264,525+15,360• Provision for loss on
construction contracts

ー3,709• Short-term borrowings＋13,124

Equity ratio(%)

38.2

37.8

(0.4pt)21,97054,728+32,757

0.23

0.54

+0.31

36,743(22,605)(59,349)

Non-current
liabilities

Interest-bearing
debt
D/E ratio（times）
Net Cash− Non-current liabilities• Long-term borrowings• Provision for loss on realestate business and other＋19,633
ー2,467− Total net assets• Retained earnings+3,441• Total accumulated other
Copyright(C) Tokyu Construction. All rights reserved.
＋1,586 9comprehensive
incomeConsolidated Statements of Cash Flows
Operating cash flow was negative due to the advanced payment of construction charges.

（Millions of yen）

FY03/2023

FY03/2024

F Y 0 3/ 2 02 4 re ma rks

Cash flows from operating
activities

20,392

ー54,023

Cash decreased due to an increase in tradereceivables and a decrease in trade payables,
etc.

Cash flows from investing
activities

2,398

ー1,399Cash decreased due to payment for theacquisition of property, plant and equipment,
intangible assets, etc.

Free cash flow

22,790ー55,422―
Cash increased due to income from long-termborrowings and a net increase in short-termborrowings, etc.

Cash flows from financing
activities

ー2,762

28,523

Net increase (decrease) incash and cash equivalents

20,066

ー26,771―

Cash and cash equivalents at
beginning of period

38,64858,714―

Cash and cash equivalents at
end of period

58,71431,942―
Copyright(C) Tokyu Construction. All rights reserved.

10Full-year Forecast for
FY03/2025
FY03/2024 Financial Results BriefingConsolidated Financial Results Forecast
Orders received and net sales will remain steady. We expect operating profit to decrease due tolower gross profit margin and increased selling, general and administrative expenses associatedw i t h h u m a n r e s o u r c e i n v e s t m e n t , e t c . Dividend per share will be 38 yen, up 1 yen, as we expect anincrease in equity capital.

（Millions of yen）

FY03/2024

Ratio

FY03/2025(Forecast)

Ratio

YoY

Orders(nonconsolidated) ※278,341―

304,000―+9.2%+25,658

Net Sales

285,681―

310,000―+8.5%+24,318

Gross profit

26,082

9.1%

24,1007.8%(7.6%)（1,982）

Selling, general andadministrative
expenses

17,927

6.3%

19,100

6.2%

+6.5%
1,172

Operating income

8,155

2.9%

5,000

1.6%

(38.7%)（3,155）

Ordinary income

9,736

3.4%

5,800

1.9%

(40.4%)（3,936）

Profit (loss) attributableto owners of parent

7,266

2.5%

4,400

1.4%

(39.4%)（2,866）

Dividend per share

37yen

―

38yen

―

－

Copyright(C) Tokyu Construction. All rights reserved.

11Non-consolidated Financial Results Forecast
Sales will increase as large-scale construction work is expected to progress. Gross profit will decrease as
construction work that was ordered amid severe competition progresses. In addition, due to increased
selling, general and administrative expenses due to human resource investment for future growth, we
expect profit to decrease.

FY03/2024

FY03/2025

Results

Net Sales

260,626

282,000

100％

+8.2%

+21,373259,208

279,000

98.9％

+7.6%

+19,791

192,909

201,000

71.2％

+4.2%

+8,090

Civ il engineering

66,29978,00027.7％+17.6%+11,700

Real estate sales

1,417

3,000

1.1％

+111.7%+1,582

22,46220,800（Profit rate）7.4％(7.4%)(1,662)

20,03420,0007.2%(0.2%)(34)

13,795

13,2006.6％(4.3%)(595)

Civ il engineering

6,238

6,800

8.7％

+9.0%

+561

R ea l es t a te gr o s s p r o f it

2,428

800

26.7％

(67.1%)(1,628)16,70917,800

6.3％

+6.5%

+1,090Operating income

5,752

3,000

1.1％

(47.8%)(2,752)

Ordinar y income

6,996

3,600

1.3％

(48.5%)(3,396)

Net income

5,147

2,900

1.0％

(43.7%)(2,247)

Bu ild ing
c o n s t r u c tio n

Gross profit
Co m p let ed
c o n s t r u c tio n gr o s s
p r o f it
Bu ild ing
c o n s t r u c tio n

S e l ling, g e n e ral anda d minist rat ive e x p e nse s

Ratio

YoY

（Millions of yen）

Completed
construction sales

Forecast

Rate of
ChangeCopyright(C) Tokyu Construction. All rights reserved.

12Non-consolidated Financial Results Forecast／
Building construction

Co m p let ed c o n s tr u c tio n s a les w ill b e b o o s t e d b y t h e p r o g r e s s o f la r g e -s c ale c o ns tr u c tio n w o r k o n h a nd . C o ns tr u c tio n
w o r k o r d er ed a m id s ev er e c o m p etit io n m a y c o n t inue t o a f f e c t t h e g r o s s p r o f it m a r gin o f c o m p le te d c o ns tr uc tio n.
A lt ho u g h e x p ec ting u nc er tain f a c to r s in c lud ing a n e f f e c t o f t h e t igh t la b o r m a r k et d u e to w o r k in g s ty le r e f o r m , w e
a im t o im p r o v e p r o f it thr o u gh o r ig in a lity a n d in g e n uity.

Completed construction sales

Construction work

/Gross Profit

carried forward（Millions of yen）
400,000
Overseas

10.0%

ー 0.6pt

Tokyu group350,000
General private
300,000
Domestic public

7.2%

200,000

192,90926,4555.0%

201,000
996

17,2000

150,000

100,000

0.0%

156,270

167,500

50,0000FY03/2025
Forecast

Amount brought
forward263,926

289,782

Orders

218,765

210,000

Completed
construction sales

192,909

201,000

Amount carriedforward289,782

298,782（Millions of yen）

6.6%

＋4.2%

Profit margin ratio
250,000

FY03/2024

9,186

16,300FY03/2024

FY03/2025(Forecast)-5.0%

Copyright(C) Tokyu Construction. All rights reserved.

13

Non-consolidated Financial Results Forecast／ Civil
engineering

L a r ge-s c a le c o ns tr uc tio n c a r r ied o v e r f r o m p r e v io us y e ar s w ill p r o g r e s s a n d c o m p le te d c o ns tr u c tio n s a le s w ill
in c r e as e. W e ex p ec t h igh er p r o f it d u e t o a n in c r e as e in c o m p le t e d c o n s t r u c tio n s a le s .
A lt ho u g h e x p ec ting u nc er tain f a c to r s in c lud ing a n e f f e c t o f t h e t igh t la b o r m a r k et d u e to w o r k in g s ty le r e f o r m , w e
a im t o im p r o v e p r o f it thr o u gh o r ig in a lity a n d in g e n uity.

Completed construction sales

Construction work

/Gross Profit

carried forward（Millions of yen）
140,000
Overseas

ー 0.7pt

120,000
General private
Domestic public
100,000
Profit margin ratio
80,00060,000

10.0%＋17.6%

66,29910,550
6,779

40,00020,000

0

8.7%

9.4%

78,0005.0%

12,8007,000

0.0%

19,20014,671

34,297

FY03/2024

39,000FY03/2025(Forecast)

FY03/2024

FY03/2025
Forecast

114,321

107,597

Orders59,57594,000Completed
construction sales

66,29978,000

Amount carriedforward107,597

123,597（Millions of yen）
Amount brought
forward

軸ラベル

Tokyu group-5.0%-10.0%

Copyright(C) Tokyu Construction. All rights reserved.

14

Non-Consolidated Order Forecast
In building construction, we will strive to secure our target projects. In civil engineering, we will
aim to acquire orders mainly for overseas ODA projects and domestic governmental projects. Keenly
aware of the impor tance of appropriate profit levels, considering our construction capacity.

（Millions of yen）

FY03/2024

FY03/2025

Results

Forecast

Rate of
ChangeYoY

Domestic public

27,71730,000+8.2%+2,282

Domestic private

190,890

180,000(5.7%)(10,890)

172,924

150,000(13.3%)(22,924)

17,96530,000+67.0%+12,034

158―(100.0%)(158)

Building construction

218,765

210,000(4.0%)(8,765)

Domestic public

31,63943,000+35.9%+11,360

Domestic private

24,03418,000(25.1%)(6,034)

16,7747,700(54.1%)(9,074)

7,260

10,300+41.9%+3,0393,901

33,000+745.8%+29,098

59,57594,000+57.8%+34,424

278,341

304,000+9.2%＋25,658

General private
Tokyu Group
Overseas

General private
Tokyu Group
Overseas
Civil engineering
Total

Copyright(C) Tokyu Construction. All rights reserved.

15

Construction Renewal
The construction renewal market will continue to expand. Demand is increasing from inboundprojects such as hotels and commercial facilities, and schools, etc. We will continue to secure ourtarget projects.

External environment• Desire for investment is strong, due partly to the recovery of inbound arrivals
and a reaction to the suppression of investment during the COVID-19 pandemic.

• Improve productivity by acquiring more large-scale
renewal projects
80,00060.0%

Future policy
80,000Net
Sales /Gross Profit
70,000ー 3.0pt(Millions of yen）
60,000Net Sales
50,000

10.0%

Gross Profit 13.0%
Margin＋7.4%

40,00030,00024,18925,98020,00010,0000FY03/2024

58.0%
56.0%
54.0%
52.0%
50.0%
48.0%
46.0%
44.0%
42.0%
40.0%
38.0%
36.0%
34.0%
32.0%
30.0%
28.0%
26.0%
24.0%
22.0%
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
△2.0%
△4.0%
△6.0%
△8.0%
△10.0%△12.0%△14.0%△16.0%△18.0%△20.0%△22.0%△24.0%△26.0%△28.0%△30.0%△32.0%△34.0%△36.0%△38.0%△40.0%△42.0%△44.0%△46.0%△48.0%△50.0%△52.0%△54.0%△56.0%△58.0%△60.0%△62.0%△64.0%△66.0%△68.0%△70.0%△72.0%△74.0%△76.0%△78.0%△80.0%

Orders
70,000（Millions of yen）
60,00050,000＋0.5%

40,00030,00023,862

23,980FY03/2024

FY03/2025(Forecast)

20,00010,0000FY03/2025(Forecast)※ Each of the numbers for the construction renewal business is a simple sum of numbers from Tokyu Renewal Co., Ltd.
and Token Industry Co., Ltd., subsidiaries engaged in the business, and no elimination was taken into account.

Copyright(C) Tokyu Construction. All rights reserved.

16

International
Place ODA projects as a core business.
Strive to expand the business area to both upstream and downstream of the value chain
by participating in TOD *1.
Futurepolicy• Know-how and technology we cultivatedthrough urban development along the
Tokyu Line, and railway/road construction
work in Japan and overseas•

External
environment

Needs for infrastructure development inSoutheast and South Asia will increase.

• Intensifying market competition withgrowing local general contractors• Rising uncertainty, including the riskof political upheaval and rising prices

Net Sales /Gross Profit ※2（Millions of yen）

8.4%

30,000ー15.4%
売上高
25,000
売上総利益率ー23.4%

20,00010,000ー10.0%

15,21515,0006,245

3.4%
17,052

ー40.0%

9,680
ー70.0%

5,000
0ー100.0%

YF03/2022

YF03/2023

YF03/2024

YF03/2025

Summary of financial results

Future policyExpand and maintain ODA projects, Expand andmaintain ODA projects, and enter non-ODA projects

Focus on TOD urban planning, etc. in cooperation
with overseas partner companiesStrengthen the foundation for growth byimplementing personnel and organizational
strategies• Sales increased in FY03/2024 thanks to the progress of alarge-scale ODA construction ordered in past fiscal years.
Profit margin recovered as negative factors of the previous
fiscal year were solved.
• We expect higher profit for FY03/2025 due to the progressin carryover construction projects at the beginning of theperiod. We will strive to resolve the effects of politicalchanges early and receive orders for new large-scale
projects to increase profit.

*1 Abbreviation of “Transit Oriented Development.” Urban development aimed at a society based on public transportation that does not rely on cars.
※2Each of the numbers for Overseas is a simple sum of numbers from overseas subsidiaries and from non-consolidated overseas business of the Company, and no elimination was taken into
account.（Overseas subsidiaries：TokyuConstructionIndonesia社、GoldenTokyuConstruction社、IndochineGroup、TokyuPacificConstruction社）
Copyright(C) Tokyu Construction. All rights reserved.

17

Real estate
Targeting environment-conscious customers, provide environmenta lly friendly properties with added value, sucha s leasing, development, a nd renewa l of old properties by levera ging synergy with construction business.
Increase capita l efficiency through cyclica l rea l esta te business using renta l income and property sales.

•

Futurepolicy••External
environment

Mainly targeted are small- and medium-sizedproperties in front of the Tokyu Line and otherstations in cooperation with Tokyu Group companies,
and in Tokyo’s five central wards
Promote real estate development and adding value
to properties through making maximum use ofsynergy as a general construction company
Provision of added value, including the use ofrenewable energy, promotion of lifespan extension ofproperties, and provision of safe and secure space• The progressing aging of buildings• Environmental real estate needs will
expand.

Future policy Use the strength of a general contractor inincreasing our value by promoting
environmentally friendly properties andintroducing our TG Brand
 Continue to acquire new profitable properties
and replace assets in the Tokyo metropolitan
area where we are strong, to promote cyclicalbusiness※ 東急建設㈱個別損益計算書の不動産事業等売上高、売上総利益の数値

Net Sales /Gross Profit ※171.3%（Millions of yen）
16,00031.0%

売上高
14,000
売上総利益率12,00010,000ー86.2%

26.7%

9,151

8,000
6,000
4,000
2,000
0

1,731
YF03/2022

1,417
YF03/2023

YF03/2024

3,000

YF03/2025

200.0%
170.0%
140.0%
110.0%
80.0%
50.0%
20.0%
ー10.0%
ー40.0%
ー70.0%
ー100.0%ー130.0%ー160.0%ー190.0%ー220.0%ー250.0%ー280.0%ー310.0%ー340.0%ー370.0%ー400.0%

Summary of financial results• In FY03/2024, sales were from leasing business only. Net
sales fell due to a reactionary decrease because of a lack ofproperties for sale. Higher gross profit from the real estatebusiness was due to a decreased provision for loss from thereal estate business associated with withdrawal fromdevelopment projects recorded in previous years.
• For FY03/2025, we expect leasing sales and property sales,
etc. Acquired new properties and strove to replace assets
held.

※ Numbers for the real estate business are the values of the sales and gross profit of the real estate business on the Company’s non-consolidated statement of income.

Copyright(C) Tokyu Construction. All rights reserved.

18

Shareholder returns
The Long-term Management Plan announced in May 2021 set the basic dividend policy as DOE of
4.0% or higher.
Year-end dividend per share will be 37 yen for FY03/2024, up 1 yen, and 38 yen for FY03/2025.

Dividend per share
（yen）

38
Year-end
19

36

25

（yen）

Interim19

FY03/2022[Reference]
ROE and payout ratio

37

FY03/2023

FY03/2024

FY03/2025(Forecast)

A “DOE of at least 4.0%” is set in the basic policy of paying dividends, as a balance between themedium to long-term results targets of an ROE of at least 10% and a consolidated payout ratio of atleast 40%.
91.1%

72.0%

ROE
Payout ratio

53.6%

-7.6%
FY03/2022 ※1

5.6%

7.4%

FY03/2023

FY03/2024※ 1 Dividend payout ratio for the FY03/2022 is not shown due to the net loss for the year.

4.5%
FY03/2025(Forecast)
Copyright(C) Tokyu Construction. All rights reserved.

19

Long-Term Management Plan “To zero, from zero.”（Rolling the plan in May 2024）

Introduced a management cycle with a ten-year long-term plan and a one-year short-term strategy. With along-term target, implement rolling plan flexibly.
Respond to severe changes in business environment and strengthen human resource investment forsustainable growth.

Business strategy

Three deliverable values
Zero waste

Decarbonization

1

1

disasterprevention

2

Establishment of the Tokyu
Construction brand through thebuilding of competitive
advantages in human resourcesand digital technology and theprovision of three values

3Competitive advantage
humanresources

Profitability

Efficiency

SoundnessNon
financial

44

Digitaltechnology

KPI

Tokyu Construction
brand

5

2

3

Core business

Strengthening of problemsolving skills, construction andproduction systeminnovation, and growththrough alliances and M&A

Human resource andorganizational strategies

5Strategic business

The creation of new growth
opportunities throughinvestments in strategic
business and synergies withcore business

Financial and capital
strategies

Emphasis on capital efficiency and theconstruction of stable financial
foundations by pursuing the optimal
capital structure

Creation of results and acceleration of
innovation through the strengtheningof human resources and reform of theorganization and corporate culture

03/FY2024
Results

03/FY2025

03/FY2027

03/FY2031

8.2 billion yen

5.0 billion yen

At least 9.0 billion
yen

At least 22.0 billion yen

Operating profit margin

2.9%

1.6%

At least 2.8%

At least 5.0%

ROIC（※1）

5.5%

―

―

At least 7.0%

ROE

7.4%

4.5％

At least 7.0%

At least 10.0%

Operating profit

Debt-to-equity ratio

0.54times

0.5 times or less

0.5 times or less

Capital adequacy ratio

37.8%

About 40%

About 45%

Employee engagement
rating（※2）

BB

A

A

AAA

GHG emissions（※3)―

16.2% reduction

23.5% reduction

30.0％ reduction※1 The ROIC of 7.0% or higher is set as a medium- to longer-term target for FY03/2031.
※2 Engagement rating using Link and Motivation Inc.’s “Motivation Cloud.” Subjects are employees of the Group as a whole, including subsidiaries. Rating is divided into a total of 11 stages, and the current “BB” is the fifth rating from the top after “AAA,” “AA,” “A” and “BBB ”※3 The baseline is the emissions in FY03/2019. We are scheduled to get a third-party certification to heighten the data credibility on GHG emissions and are planning to disclose the data for FY03/2023 around July 2023.。

Copyright(C) Tokyu Construction. All rights reserved.

20

Restructuring of our earning power(Problem-solving skills )Acquire and develop human resources which are the key to our future competitive edge, while
reconstructing earning power based on a policy defined for each individual strategy.
Strengthen the problem-solving skills and continue to meet customers’ expectations.
Points of strate gy

PolicySafety/quality

Improve employees’ accident
prevention awareness,eliminate lost earnings due tohuman errors caused by theCompany and partnercompanies

Sales force

Ensure we judge the adequacyof a project, taking into accountthe focus area and profitability
Efforts made by management
and construction workers as one

Productivity/
labor force

Improve the support system of
headquarters and branches to reduce
operational burden of worksites
Raise productivity and efficiency by
improving the construction andproduction system continuously

Construction
RenewalJudge the adequacy of focus
projects in a growing market, andfocus on large-scale renewal
projects

Human resources
investment

Improve employee
treatment that is inferior tothat of competitors

Measures to be taken
Building
construct
ion

Civil
engineering• Apply stricter guidelines to ensure construction procedures, andraise awareness of not only employees but also partner companies• Ensure we more thoroughly take measures based on past failure
analysis• Prepare construction plans using ICT technology, and establish a control
quality system in which headquarters and branches are involved

Building
construction• Screen strategic focus projects early and allocate internal resources efficiently

Civil
engineering• Take advantage of track record and qualifications in determining
target projects and making better proposals• Deal with price increases, and carefully explain with clear rationale to contractees• Raise productivity by using DX (including BIM and CIM) and labor-saving construction
methods• Collect examples of construction improvement and share measures horizontally• Strengthen the relationship through the cooperating company associations, and help
partner companies to secure work resources• Use human resources efficiently by focusing on large-scale renewal projects
mainly in the metropolitan area
• Make human resource investment by quickly raising base pay, etc.
• Review personnel development plan including digital learning, and align the
direction of the Company’s growth and personal growth
Copyright(C) Tokyu Construction. All rights reserved.

21

Take actions to realize
management that is
conscious of capital costand stock prices
FY03/2024 Financial Results BriefingMeasures for the recognition and improvement of
current situation from a PBR perspective

PBR has improved since the announcement of the Long-term Management Plan in May 2021
Promote capital-efficiency-conscious management to improve the current PBR which has fallen below
1.0.
Current status of the Company
▍PBR

▍ROE

PBR1.0

5.6%
0.61

0.76

0.75

Measures for improving PBRROEAt least
10%

0.9

As of
As of
As of
As of
March31,2021 March31,2022 March31,2023 March31,2024

PBR

7.4%

Declined in the short term
due to human resource
investment for the future

FY03/2023

FY03/2024

FY03/2025(Forecast)(Forecast)

・・・

FY03/2031(Target)• Restructuring of our earning power (Problem-solving
skills )P21

PER• Initiatives for Working Style Reform andP28-30Construction Quality• Reduction of Low-Performing Assets(Strategic Shareholdings)
P32• Promotion of Human Capital Management

Improve ROE
Improve
PBR

Reduce capitalcosts

P23-24• Acquisition of Market Opportunities by Leveraging Our
StrengthP25-27• Stable and continuous shareholder return (DOE 4%)
P19• Use green loans to respond to climate change• Improve Dialogue with the Stock Market and Information
P31
Disclosure

Initiatives
for growth

Reducecapitalcosts

Copyright(C) Tokyu Construction. All rights reserved.

22

I mp rov e R O E

Expansion of human capital investment

R e d u ce
ca p i tal cos t sReallocate FY2030 business portfolio to 75% for the core business and 25% for the strategic business.
Expand human capital investment to accelerate the revision of personnel portfolio including shifting thenecessary skills and recruitment.

Investment in sources of competitive
advantage (human resources, DX)（Total investment between
FY2021 and FY2030）

10 billion yen

38billion yen

Core Businesses（Domestic Building Construction/
Domestic Civil Engineering/Construction Renewal)）
Develop digital professionals who can deal withtransformations to the construction production system
Digitalize the customer contact point throughout life
cycle
Build and operate BIM/CIM-driven data platform

Strategic Businesses（International Business/Real
Estate Business/New Businesses）

Hire experts and develop professionals
Foster innovative corporate culture
Common (recruitment, training, and reskilling)
HR system reform, treatment improvement,
and personnel development investment
Establish system infrastructure andenvironment that promote company-wide DX
Copyright(C) Tokyu Construction. All rights reserved.

23

Promotion of Human Capital Management(Instilling Philosophy and Vision)

I mp rov e R O E

R e d u ce
ca p i tal cos t s

Vision Dialogue throughout the year, an opportunity for management and a small number of employees tocommunicate online (all employees are eligible)
By sharing the Philosophy, Vision, and Long-term Management Plan with employees and highlighting them tothem, encourage them to take action voluntarily.

What is Vision Dialogue?
••••

Background to initiatives

Online dialogue where one management officer and five employees
communicate (all employees are eligible)
Facilitated by corporate and executive officers including the President (held 2 to
3 times a month)
Randomly chosen employees of various departments, ages, and job types, etc.
Everyone attends the dialogue on a level footing (no lecturer, no audience)• The whole company needs to understand and accept the plan
regarding difficulties and change, including VISION 2030, and theLong-term Management Plan to realize it• Management repeatedly conveys the Company’s vision to employees
to create a cycle of understanding, agreement, and voluntary action

Implementation
status

FY2021 (1st phase)

FY2022 (2nd phase)

FY2023 (3rd phase)

FY2024 (4th phase)

Theme

First step is to spreadthe new Vision and havepeople learn it

Behavioral change
necessary to realize visionand transformation

Movi n g exp er i e n c e( r e d i sc o v e r j o b sat i sfac t i o n ,p ri d e , and vi si o n )Dream (Deepen the
mission “Realize dreams
for each individual”)

Participation
status••

Evaluation

Issues tobeimproved

2,436 (participation ratio: 93%)
511 times••

2,447 (participation ratio: 90%)571 times••

2,371 (participation ratio: 90%)
495 times• Vision is abstract andmeasures lack concreteness• Insufficient relative strengthand concern about future• Increased concern about
working style reform• Restoration of confidence
affected by quality accident• Proceedings of dialogue vary
between facilitators• Positively evaluated dialogue
with psychological safety• Revise the discussion
themes to be more
concrete for more
active dialogue••

Prior discussion to foster a common
view among all the management
officers
Executives publish their opinions andthoughts in the company newsletter••(To be started in June)

To be continued into the
futureWill take up a forwardlooking and positive subject
Strengthen the direction of
employees and theCompany
Copyright(C) Tokyu Construction. All rights reserved.

24

I mp rov e R O E

R e d u ce
ca p i tal cos t s

Ac q u i s i t i o n o f M a r k e t O p p o r t u n i t i e s b y L e ve ra g i n g O u r S t r e n g t h1)Our Strengths

Resident-minde dness, a keen a wa reness of the community a nd visitors which we have fostered through yearsof urban pla nning a s a member of the Tokyu Group.
We will levera ge the world’s lea ding tra ck record, technology, a nd know-how in developments aroundrailways/sta tions a nd seek other ma rket opportunities
Strengths of
Tokyu Construction GroupThe Technology, Expertise, and Teamwork
That Keep Urban Functions RunningShibuya Scramble SquareTokyo Metro Ginza Line
Tokyu Toyoko Line Shibuya
都市機能を止めない技術の例
Station to Daikanyama
Station track switchover

Shibuya Station railway
track diversion project

National Route 246 Shibuya
Station East Exit Footbridge

Shibuya Station East Exit Infrastructure
Development Construction (first construction
district) associated with Shibuya Station Area
Land Readjustment ProjectR2 National Route, 246 Shibuya
Station Area Underpass Construction

Copyright(C) Tokyu Construction. All rights reserved.

25

I mp rov e R O E

Urban Development in Shibuya

R e d u ce
ca p i tal cos t s

We have executed difficult construction projects in Shibuya, leveraging our technology, expertise andteamwork.
Shibuya has huge future potential with numerous redevelopment projects planned.
■Major construction projects of
Tokyu Construction■Redevelopment projects underconstruction (by other companies)■Announced redevelopment projects, etc.

Shibuya Ward
Office, etc.
Shibuya Upper
West Project(Site of Tokyu Department
Store Main Store)

2) SHIBUYA STREAM©SHIBUYA STREAM

Bunkamura

Shibuya109
Toyoko Line/Fukutoshin Line
Shibuya Station

SHIBUYA
CAST

Site of Aoyama
Hospital

Aoyama Park Tower
4) Tokyo Metro Ginza Line
Shibuya Station
improvement construction
project
Miyamasuzaka
QFRONT
district
Shibuya 2chome West
area
SHIBUYA AXSH

3) SHIBUYA SCRAMBLE SQUARE

Dogenzaka 2chome South
District

SHIBUYASCRAMBLE SQUARE
Station Town
SHIBUYA District Central and
MARK CITYWest Wings
CERULEAN TOWER

4) Tokyo Metro Ginza Line Shibuya
Station1) SHIBUYA HIKARIE
3) Shibuya Scramble
Square East Building2) SHIBUYA STREAM
Shibuya Sakura
Stage

Urban
Regeneration
Emergency
Development Area

SHIBUYA BRIDGE

1) SHIBUYA HIKARIE©TOKYU CORPORATION

National Route 246 Shibuya
Station East Exit Footbridge

The buildings and infrastructure highlighted in the aerial photos are our construction
projects. The map was created by the Company based on published data. *Scheduled
Copyright(C) Tokyu Construction. All rights reserved.
to open after November 30, 2023.

26

I mp rov e R O E

R e d u ce
ca p i tal cos t s

Ac q u i s i t i o n o f M a r k e t O p p o r t u n i t i e s b y L e ve ra g i n g O u r S t r e n g t h2 ) T h r e e va l u e s

Acquire market share in the strategically impor tant three areas of our value: decarbonization, zerowaste, and disaster prevention and mitigation.
Instill the recognition internally and execute measures power fully.
Example of acquisition ofmarket opportunitie s ZEBot, a ZEB service for existing buildings, won the
Minister of Economy, Trade and Industry Award in theBusiness Model of the Energy Conservation Grand Prize.
 Raise the share of ZEB to 50% or more, out of design andconsultation services.

 Enter the power storage facility business andstabilize the balance of power supply anddemand, and leverage renewable energy

 Measures for disasterprevention/mitigation and National
Resilience Fulfill our social mission

Urgent disaster recovery of Noto Hanto Peninsula Earthquake(road service resumption)

T h r e e va l u e s

Main measures
Responding to climatechangeAcquisition of revenue
oppor tunities
Entry into renewable energy-related business
Promotion of wooden construction projects
Development and operation of decarbonization-related
technology• Extension of the service life of buildings and disasterprevention/mitigation through the use of building healthdiagnosis technology and torrential rain damage
forecasting technology• Contribution to infrastructure longevity throughinfrastructure asset management• Creation of a disaster simulation tool through the use ofdigital twins
•
•
•

•
•
•
•
•
•

Conversion of all electricity used in ourbusiness activities to renewable energy
Conversion of heavy machinery and dump
truck fuel to non-fossil fuelDecarbonization of construction materials
Reduction of final disposal of waste plastics
and other wastes
Promotion of recycled material use
Development and operation of waste
recycling technology
Copyright(C) Tokyu Construction. All rights reserved.

27

Initiatives for Working Style Reform and
Productivity Improvement

I mp rov e R O E

R e d u ce
ca p i tal cos t sRealize a more productive and satisfactory working style, taking the overtime work cap restriction as anopportunity for change Continue to improve our construction technology and know-how, while utilizing
digital skills to improve productivity,
in cooperation with other partner companies.

Purpose of initiative✓

Change from “support” to“sharing”✓

Eliminate lost profits throughthorough awareness of quality,
safety and security✓

Utilization of digital technology
and human resource
development with a view to themedium to long term

Measures to be taken
Measures for Overtime WorkCap Regulations
 Focus on core operations by work site engineers
・Support from head office departments
・Use of dispatch and outsourcing
 Introduction and expansion of ICT tools and laborsaving methods
 Strengthening and support for quality
management systems

Creating with cooperatingcompanies Strengthening cooperation with cooperative
associations

 Holding events to present good practices andimprovement cases at the work site (held every
year)

Realize a more productive
and satisfactory working
style Support for human rights education
 Support for hiring of cooperating companies

・Turn a local office into a satellite office・Introduction of shift work and flexible working
hours
・Construction plans based on the premise ofclosing work sites for a total of eight days ofevery four weeks ・Construction plans basedon the premise of closing work sites for a
total of eight days of every four weeks

Improving implementation ratio of closing work sites for a
total of eight days out of every four weeks※1 closing work sites for a total of eight days out of every four weeks: A system to secure eight days off in four weeks (a five-day week)※2 TQ-BUDDY: A job information site operated by a professional construction partner company released in 2023 with which the Company has business. Job seekers can directly apply for jobs at
Copyright(C) Tokyu Construction. All rights reserved.
each partner company.

28

Transformation to BIM-Driven
Construction and Production Systems

I mp rov e R O E

R e d u ce
ca p i tal cos t s

We are accelerating construction production system reform centered on BIM/CIM to provide solutions to alabor shortage and working time cap, etc.
We strengthen training to improve the digital literacy of employees and promote collaboration with partnercompanies.

【Building Construction】 In view of digital twin*1,
we have accumulated a track record of introducing
a labor-saving and efficient system driven by digitaltechnology centered on BIM, in cooperation withpartner companies.

【Civil Engineering】 Generated a 50% process
reduction effect with PPCa box culvert using 4D
simulation

Winner of the Excellence Award of the Ministry of Land,
Infrastructure, Transport and Tourism’s Infrastructure DX Award
https://www.tokyu-cnst.co.jp/topics/2575.html

Automation of
estimations

Simulation of theenvironment

Automation ofprovisional
planning

Maintenance,
management
and use (FM)Tokyu
Construction’s
BIM platform
Robotics

Automation of
Pca production

VR with game engine
and 4D simulation
The construction of the underpass around
Shibuya Station on R2 National Route 246

Cooperation
with IoT

Construction BIM
cooperation*1: A digital twin of a building is a virtual version of the building.
*2: Under the PCa (precast concrete) method, concrete products are made at factories
in advance before delivered to and used at construction sites. The use of the method
helps heighten productivity and reduce waste materials compared with the popularmethod under which concrete structures are cast on site.

[Common] Improvement of employees’ digital literacy
Number of qualified employees(people)IT passport holders

357/2,471
2,043/2,471

Digital personnel development
Number of employees who
participated in internal（As of the end of March 2024）
training
Copyright(C) Tokyu Construction. All rights reserved.

29

Efforts to Prevent Recurrence of Quality
Problems, Improve Construction Quality,
and Restore Trust

I mp rov e R O E

R e d u ce
ca p i tal cos t s

In fiscal year 2021, the 3 points below were discovered

The response

Temporary structures left in civilengineering works in past fiscal
years

3

Defects in building work in pastfiscal years

Investigation of the cause and prevention of reoccurrence

2021
July 26

Defects in the tips offoundation piles inconstruction work
( 1 Official announcement)

November 8

Revision of results forecast( 1 - 3 Recording of losses
and expenses)

November 18

2

Defects in the tips offoundation piles inconstruction work
( 1 Follow-up report)

2022
May 19Disclosure of initiatives for theprevention of reoccurrence

Subsequently► Continuation of measures
for the prevention ofreoccurrence► Deepening of reform of theorganizational culture

Cause

1

Defects in the tips of foundation
piles and the falsification of data
during station improvement work

Prevention of reoccurrence

Overview of
the quality
problems

Regarding the past quality problems, we have reviewed the structure, system and organizational culture to prevent
their recurrence thoroughly.
Strictly ensure the awareness of safety and quality control through dialogue between management and all employees.

• Lack of awareness and managementof special construction conditions• Dilution of quality awareness andsense of ethics

Improvement ofconstruction quality
management system(Civil Engineering)

Information sharing &Improvement of training
programs for worksite
engineers• Gaps in intergenerational communication in
the field• Lack of on-site support by Head Office andbranches• New establishment of the quality control division of Head Office• Building of a human and technical support system for the field• Introduction of preliminary reporting by e-mail of accidents andproblems directly linked to management• Expansion of the internal reporting system• Review of construction management education and training
programs

Accountability
clarification• Voluntary return of remuneration by Directors and Executive Officers• Of remuneration for directors, the portion of variable compensation,
which is linked to short-term performance, has not been paid tothem in FY03/2023

Reforming
corporate culture• Compliance education for all officers and employees• Launch of measures that make communications more frequent andeffective

Copyright(C) Tokyu Construction. All rights reserved.

30

Improve Dialogue with the Stock
Market and Information Disclosure

I mp rov e R O E

R e d u ce
ca p i tal cos t s

We strive to reduce any asymmetric information between the Company and investors through constructive
dialogue with shareholders and investors, and active disclosure.
We report opinions received through IR activities to management and outside directors to improve corporate
value.

Major activity

Re fle ct manage ment in PDCA cycle

Information disclosure

1Q

2Q

3Q

4Q

• Financial results
reference material• Financial results
briefing session• Financial results
reference material• Publication of
integrated report• Financial results
reference material• Q2 financial
results briefing
session• Financial
resultsreferencematerial

Quarterly actions

Information disclosure

Implementationof improvement
measuresDialoguewith themarketReport IR activity results, and opinions of shareholders and investors, and share
information with related internal divisions

Activity done all year round (as needed)
Active distribution of news releases and enhancement of corporate website
Deal with inquiries and questionnaires

Dialogue• Business briefing
session• Financial result
briefing for
employees• Businessbriefing session• Business briefing
session• Financial result
briefing for
employees••

Field tour
Constructive dialogue
with shareholders
and institutional
investors

Activity done all year round (as needed)
Individual IR interviews, surveys of related (internal) divisions and on-site visitsInternal
sharing

Problem
identification

Promote mutual
understanding and make us
more trustworthy for thestock market through IR
activities
Copyright(C) Tokyu Construction. All rights reserved.

31

【Appendix】

FY03/2024 Financial Results Briefing

Reduction of Low-Performing Assets(Strategic Shareholdings)

I mp rov e R O E

R e d u ce
ca p i tal cos t s

We judge the appropriateness of holdings based on capital efficiency and strategic significance(as to business synergy and securing stable profit, etc.).
We will reduce our strategic shareholdings, in principle.
（Millions of yen/％）Recorded BS Amount

Ratio to Consolidated Net Asset
70.0%

18,37718,287
15,334

16,371

16,08917,934
16,47816,02360.0%

14,22250.0%

12,560

41.0%

35.6%

40.0%

Will reduce
further

28.3%
20.3%

19.7%

17.7%

24.7%
15.8%

14.8%

17.3%

30.0%

Targeting
10% or
less

20.0%

10.0%

0.0%

FY03/2014 FY03/2015 FY03/2016 FY03/2017 FY03/2018 FY03/2019 FY03/2020 FY03/2021 FY03/2022 FY03/2023

FY03/2031

Copyright(C) Tokyu Construction. All rights reserved.

32

Business model and business overview
We take on construction work en masse from government agencies and private companies, and manage construction work
efficiently in cooperation with numerous suppliers. We realize the maximization of added value by implementing integrated
construction management of everything from quality and costs to safety and the environment.

Business development based on strong relationships of trust

Overseas(ODA/private)

Quality

SafetyCost

DeliveryEnvironment

Cooperatingcompanies

Specialist construction
companies (subcontractors) andlocal general construction
companies

Engagement

Government
offices

OrdersRailway operators andprivate companies

Integrated and consistentconstruction management

Collaboration

We want to beaccompanied by areliable construction
company with a trackrecord.

High value-addedbuildings and good
infrastructure are
required.

Sharingof needs

Customers

Suppliers of materials andconstruction equipment

Built-to-orderconstruction

Buildingof safe andsecure social
infrastructure

Relationships of trust
Business overview

Core business
Building
Construction

Construction of commercial facilities, hotels,
offices, factories, and distribution centers

Civil
Engineering

Railways, roads, tunnels, bridges, andother construction

Construction
renewal

Building renewal work

Strategic business

SynergyRealestateInternational
New
Business

Real estate rental business
Equivalent exchange business, etc
Railways and roads, construction of high risebuildings and factories, etc
PPP / Concession Business such as airports,
water and sewage systems
Copyright(C) Tokyu Construction. All rights reserved.

33

[Inquiries]
Nishida/Morita/Hashimoto
Corporate Planning Department, Corporate Strategy Division
TEL: +81-3-5466-5008
URL: webmaster@tokyu-cnst.co.jp

Notes
Forward-looking statements such as forecasts of thecompany’s results contained in this document are basedon information available as of the date of publication andassumptions made as of the date of publication regarding
uncertain factors that may affect future results.
Except as otherwise provided for by law, the company
shall bear no obligation to update these future
predictions. Actual results may differ from future
predictions due to various factors.