FY03/20 Financial Results Briefing
May 19, 2020

Contents

FY03/20 Financial Results Briefing

1．Overview of FY03/20 Financial Results
2．Full-Year Outlook for FY03/21
3．Topics and Mid-term Management Plan
Progress

This briefing material includes ourearnings forecasts and projections.
Please note that these reflect forecasts
and estimates based on information
available to the Company as of the dateof release of this document, and contain
uncertainties.
1

Financial Results Briefing

1. Overview of FY03/20 Financial Results
 Consolidated net sales remained at a high level, but declined on a year-onyear basis.
 Consolidated gross profit reached a record high.
 Operating income declined from last year’s record high on an increase in
spending for future growth.
 Parent orders slipped below ¥200 billion, mainly on construction start delays.

2

1 Business Environment
Business environment in FY03/20
1.

2.
3.

The Japanese economy maintained a gradual recovery track from the beginning of the fiscal
year, supported by robust corporate earnings and a sustained improvement in theemployment and income environments, but deteriorated sharply as a result of the COVID-19
outbreak.
The construction market showed strength, backed by firm public investment and privatesector capital spending amid an improvement in corporate earnings.
Despite the ongoing increase in labor expenses, construction costs remained within the rangeof expectations thanks to subsiding material/equipment costs.

Prospects
1.

2.
3.

As a result of the spread of COVID-19 infections, the Japanese economy is expected to remain
in a severe slump for the near term, with a further deterioration possible should conditions
worsen.
It will be important to pay close attention to the trend among companies toward reviewing
capital expenditure plans due to a deterioration in corporate earnings.
In addition to undergoing a qualitative shift in demand, from one-time revenue businesses(mainly new construction), to recurring-revenue businesses (including maintenance andrepair work), the construction market is under pressure to enact structural reforms, including
in regard to workstyle reforms, reducing long working hours, and the growing shortage oflabor.
3

1 FY03/20 Full-Year Results (Consolidated)
Consolidated net sales remained at a high level but declined from the previous year’s record high.
Gross profit reached a record high, but operating income was down from the previous-year level on an
increase in SG&A expenses.
The subsidiary handling the building renovations business saw a steady expansion in earnings. (Millions of yen)
FY03/20

Items

FY03/19

Tokyu
Construction

Subsidiaries

Consolidated

Differencecompared
to previous
year

Rate ofchangeNet sales

331,437

296,426

27,034

322,170△9,266△2.8%

Gross profit

36,07333,087

3,304

36,173100

0.3%

Selling, general andadministrative expenses

14,08615,304891

15,858

1,771

12.6%

Operating income

21,987

17,782

2,412

20,315△1,671△7.6%

Ordinary income

22,932

18,1402,387

21,969

△963

△4.2%

Profit (losses) attributableto owners of parent

15,504－－

14,903(660)(3.9%)

Consolidated subsidiaries
Token Industry
Tokyu Renewal
Tokyu Construction Indonesia
Golden Tokyu Construction
Plantaardig farm
Osaka Firefighting Private Financial Initiative (PFI)Consolidated subsidiaries total

Profit (losses)
attributable toowners of parent

24
1,756
△281
△55
△41
5
1,406

Equity-method affiliates
Seikitokyu Kogyo
Tokyu Green System
Ch. Karnchang-Tokyu Construction
Asuka Soken
Equity-method affiliates total

Equity-method
profit (losses)

1,371
8
45
121
1,547
4

FY03/20

1 Factors Affecting Net Income (Consolidated)
Equity-method investment income and real estate gross profit improved.
Profit attributable to owners of parent declined ¥600 million from the previous-year level on
an increase in costs associated with in-house ICT infrastructure development as well as
aggressive hiring and training to ensure long-term growth.

15,504

Increase inequitymethod
investment
gains
757

Decline intax
expenses
500

FY03/19
Profit attributableto owners ofparentProfit increase

Increase in
SG&A
expenses
Deterioration
1,771
Increase inof nonextraordinary operating
lossesrevenue138
Increase in49
real estate
income116
Decline incompleted
construction
gross profit
15(Millions of yen)

14,903

FY03/20
Profitattributableto owners ofparentProfit decline
5

FY03/20

1 FY03/20 Full-Year Results (Non-Consolidated)
Net sales declined 4.4% year on year.
While gross profit margin improved 0.4pp year on year, operating income dropped ¥2.0 billion year on year due
to the decline in net sales and a rise in SG&A expenses, including personnel expenses.
(Millions of yen)

Results

Ratio(%)

Differencecompared
to previous
year

Rate ofchangeFY03/20

Items

FY03/19

Completed construction sales
Civil engineering
Building construction

308,623
70,381
238,241

295,034
88,078206,956

[100]
29.9
70.1

(13,588)
17,696(31,285)(4.4%)
25.1%(13.1％)

Completed construction gross profit

Civil engineering
Building construction

33,316
9,892
23,42332,935
8,218
24,717

11.2
9.3
11.9

(380)
(1,674)1,294(1.1%)(16.9%)
5.5%

Real estate sales
Real estate gross profit

1,323
54

1,391
151

[100]
10.9

68
97

5.2%
179.7%

309,946
33,370296,426
33,087100
11.2(13,519)(282)(4.4%)(0.8%)

13,571

15,304

5.2

1,733

12.8%

Operating income

19,79817,7826.0(2,015)(10.2%)

Ordinary income

20,084

18,140

6.1(1,944)(9.7%)Net income

14,025

12,190

4.1(1,834)(13.1%)Net sales
Gross profit
Selling, general and administrative
expenses

6

FY03/20

1 Net Sales (Non-Consolidated)
Completed construction sales declined year on year. While completed civil engineering
construction sales increased in joint-venture subcontracting work, completion of large-scale
projects in the building construction business had mostly fizzled by the end of 1H.
Acquisitions in the real estate business were focused on income properties where renovation work
is expected to increase value.
Real estate

Net sales¥296.4 billion(-4.4% YoY) Completed construction sales
Civil engineering

Building construction(Millions of yen)

Civil engineering

312,487

309,946

296,426

1,725

1,323

1,391

236,898

238,241

206,956

73,86370,381

88,078

FY03/18

FY03/19

FY03/20¥88.0 billion(+25.1% YoY)

Building construction ¥206.9 billion(-13.1% YoY)

 Real estate sales¥1.3 billion(+5.2% YoY)7

FY03/20

1 Gross Profit (Non-Consolidated)
The civil engineering profit margin fell 4.8pp year on year due to low-margin joint-venture subcontracting projects
accounting for an increased ratio of total projects, and a year-on-year reaction to strong margins achieved last year onan unexpectedly high number of design change/addition projects.
The building construction profit margin improved 2.1pp year on year thanks to unexpectedly strong profitability
improvement on completed large-scale construction projects.
Real estate gross profit expanded on the steady accumulation of rent income as income property acquisitions exceeded
prior expectations.
土木
Civil engineering
建築
Building construction

Gross profit

33.0 billion

¥

11.6%

14.1%

11.9%

+ 2.1pp(-0.8% YoY)
- 4.8ppCompleted construction gross profit
Civil engineering¥8.2 billion

9.7%

9.8%

35,30133,370534

54(-16.9% YoY)

Building construction¥24.7 billion

9.3%

33,087(Millions of yen)151(+5.5% YoY)
Real estate

27,56823,42324,717

7,198

9,892

8,218

FY03/18

FY03/19

FY03/20

Real estate gross profit ¥0.15 billion(+179.7% YoY)

Building
Construction
Civilengineering

8

FY03/20

1 Financial Position and Cash Flow (Consolidated)
Net assets increased to ¥101.7 billion, with the equity ratio coming in at 42.9%.
Operating cash flow was negative on the granting of improved payment terms to partner companies.
[Consolidated Financial Position](Millions of yen)March 31,2018

March 31,2019

March 31,2020

Rate ofchangeTotal assets

249,756

264,996

235,897(11.0％)

Total liabilities

170,581

172,014134,193(22.0%)

・Valuation difference on available-for-sale securities

1,721
83
1,638

1,638
80
1,557

26,55725,081
1,476

ー ％
ー ％
(5.2％)-1,364

Net assets

79,17592,981

101,703

9.4％

Equity ratio

31.6％

35.0%

42.9%

7.9ｐ

Items

Interest-bearing debt
(Short-term debt)(Long-term debt)

YoY change +8,722
・Dividends of surplus -3,201
・Profit attributable to owners of the parent ＋14,903

・Remeasurements of defined benefit plan -1,764, etc.

Equity ratio 42.9%
35.0%[Consolidated Cash Flow](Millions of yen)Net
assets

31.6%

Items

FY03/18

FY03/19

FY03/20

Cash flows from operating activities

16,226

29,694(33,439)

Cash flows from investing activities(3,383)(5,786)(7,488)Cash flows from financing activities(6,457)(3,575)

21,604

Effect of exchange rate change on
cash and cash equivalents

(102)

(52)

(270)

Net increase (decrease) in cash
and cash equivalents

6,283

20,279(19,595)

1,721

1,638

Cash and cash equivalents at endof year28,86549,14529,549Mrach 31,2018

Mrach 31,2019

92,981
79,175

101,703

Interestbearing
liabilities
26,557
Mrach 31,2020

Tokyu Construction has adopted the Partial Amendments to Accounting Standard for Tax Effect Accounting, etc. (“the Standard”) from the start of the current fiscal year, andthe Standard has been retroactively applied to the figures as of March 31, 2018.

9

FY03/20

1 Orders (Non-Consolidated, Company-Wide)Company-wide orders declined 26.5% year on year to ¥193.3 billion.
Orders fell in reaction to large civil engineering orders received overseas in the previous year
and private construction work being pushed back to the next fiscal year.

(Millions of yen)

FY03/20

Differencecompared topreviousyear

291,337

263,053

193,315

6,952
Overseas

Rate ofchange23,003

Tokyu
Group

74,058

Private34,610Company-wide

Domestic
public40,818(9,592)(19.0％)

Domestic
private144,924(44,713)(23.6％)

Generalprivate120,968(34,060)(22.0％)

Tokyu Group
companies

23,956(10,653)(30.8％)

Overseas

7,571(15,431)(67.1%)

193,315(69,738)(26.5％)

7,571

Public23,956150,626

155,028
120,968

59,69850,41140,818

FY03/18

FY03/19

FY03/2010

FY03/20

1 Orders (Non-Consolidated, Civil Engineering)
Overall order value declined in reaction to large-scale overseas orders received
in the previous year.
Domestic civil engineering orders expanded.
(Millions of yen)

FY03/20

Domestic
public30,824

Differencecompared
to previous
year

Rate ofchangeCivil engineering

2,639

9.4％

4,559

17.1％

Domestic
private31,151

Generalprivate22,001

9,904

81.9％

Tokyu Group
companies

9,150(5,345)(36.9％)

Overseas

76,784

77,766

5,315

22,98864,6052,629

14,4809,150
11,033
14,49522,001

2,629(20,359)(88.6%)

64,605(13,160)(16.9％)

12,09645,95428,18530,824

Overseas
Tokyu
Group
PrivatePublic

FY03/18

FY03/19

FY03/2011

FY03/20

1 Orders (Non-Consolidated, Building Construction)
Orders declined sharply amid heightened competition and multiple large-scale projects being
pushed back to the next fiscal year.
We recognize that the level of orders for FY03/20 is only temporary, given that these orders are
expected to be added to those in FY03/21.
(Millions of yen)

FY03/20

Building construction

Domestic
public9,994

Domestic
private113,772

Differencecompared
to previous
year

214,552

185,287

128,709

1,636

Rate ofchange15
59,578

20,114(12,231) (55.0％)
4,942(49,273) (30.2％)

Generalprivate98,966(43,965) (30.8％)

Tokyu Group
companies

14,805(5,308) (26.4％)

Overseas

4,942
128,709

4,927

14,805
142,932
139,592

98,966

Publicー(56,577) (30.5％)

Overseas
Tokyu
Group
Private13,744
FY03/18

22,2259,994

FY03/19

FY03/20

12

Financial Results Briefing

2. Full-Year Outlook for FY03/21
 We expected FY03/21 earnings to show a sharp yet temporary decline
year on year, even when excluding the impact from the spread of
COVID-19 infections.
 Given the difficulty in making a reasonable calculation of the impact onearnings from the increase in COVID-19 infections, we have decided todelay the issuing of earnings forecast to a later date.
 Once we have achieved an understanding of the effects from the
COVID-19 outbreak, including on existing projects and customer capexplans, we will promptly announce our forecast.
13

2 Measures Taken in Response to the COVID-19 Outbreak
Our company launched telecommuting for in-house operations on March 2, 2020. With the government
issuing its emergency declaration on April 7, we adopted a policy suspending in principle all construction toprioritize the health and safety of our employees and stakeholders and implemented measures for consultingwith our customers.
Employee health and safety







Launched company-wide telecommuting in principle forin-house operations on March 2, 2020
Launched staggered shifts under a flextime system forthose commuting
Issued communications from top management toemployees
As of May 18, the company reported that two full-time
employees and one temporary employee had been
infected
Increased online training options and promoted the athome acquisition of qualifications and training of new
employees
Conducted recruiting activities mainly on an online basis

Work-site measuresMeasures for our customersRequested the temporary suspension of on-site
operations in line with government directives in theemergency declaration aimed at preventing the spreadof COVID-19
Proposals, estimates, and construction planning are now
conducted remotely, rather than face-to-faceMaintain a system capable of allowing emergency workto avoid adverse impacts on daily life, including work tomaintain urban infrastructure and preserve lifelines

Launched a system in February in which partner companies
could immediately report an infected on-site worker or suspicion
that close contact with an infected person had occurred
Suspended in principle all construction following the April 7
emergency declaration and initiated consultations with ourcustomers
Should the construction work continue, we ensure the safety of
all in the area, including through the wearing of masks, andavoid the “three Cs” (confined spaces, crowded places, andclose-contact setting) at the work-site by promoting staggered
shifts for employees, remote conferencing rather than face-toface meetings, disinfecting, and temperature checks for
employees, and hand washing

Maintaining our businessEnacted an ongoing review of the business continuity
system from January
Conducted cash-on-hand simulations, including deals
with financial institutions, to confirm there are no
immediate problems
Management and Board of Directors meetings are held
online14

2 Full-year Forecast for FY03/21 (prior to the COVID-19 outbreak)We expected a sharp but brief year-on-year downturn in earnings in FY3/21, even before
considering the COVID-19 outbreak and its impact on performance.


Delays in previous-year orders, largely in the building construction business, have resulted in relatively few
construction work carried forward at the beginning of the fiscal year
Profit expected to be lower due to a temporary reduction in net sales and a shift in competitive environment
While a few projects in progress expected to contribute to net sales, orders, including those delayed from last year,
appear ample

Note: The earnings outlook here does NOT factor in the impact from the COVID-19 outbreak.
Given the difficulty in making a reasonable calculation of the impact on earnings from the increase
in COVID-19 infections, we have decided to delay the issuing of earnings forecast to a later date.

(Consolidated) Net sales
Operating income
Ordinary income
Profit attributable to owners of parent¥272.0 billion (-15.6% YoY)
¥9.6 billion (-52.7% YoY)
¥10.6 billion (-51.8% YoY)
¥7.1 billion (-52.4% YoY)

(Non-consolidated) Net sales and gross profit margin forecast(Non-consolidated) Orders forecast

Net Sales
Construction business
Civil engineering
Building construction
Real estate business

Orders¥325.0 billion
Civil engineering¥69.0 billion
Building construction ¥256.0 billion¥246.0 billion (9.5%)¥244.2 billion (9.3%)¥76.7 billion (11.5%)¥167.5 billion (8.2%)¥1.8 billion (44.4%)

15

2 The Effects from the Spread of COVID-19
We will announce the forecast as soon as possible based on our understanding of the effects
from the COVID-19 outbreaks, including on existing projects and customer capex plans.

Constructionin progress(Japan)New
construction(Japan)Indicated to customers that we suspend construction during the period covered by the
emergency declaration
Working to avoid the “three C’s” at work-sites where work is still in progress. For
locations were construction is suspended, we will seek to resume work while doing ourutmost to prevent infections
After construction is resumed, we will make every effort to make up time in theconstruction period and will discuss with the customer expenses incurred as a result of
the suspension

We are carefully examining the potential impact on new construction, including over the
medium term, as revisions to private-sector capex plans as well as delays to theannouncement of and bidding on public works projects have led to concerns over thefreezing of business and delays to new project starts

Despite some delays in the procurement of material and equipment, work on projects
currently under construction has not been halted.
Some progress has been delayed due to travel restrictions and some Japaneseemployees and consultants returning to Japan

OverseasReal estateIn discussions with some rental property tenants regarding requests for rent extensions

While maintaining focus on the infection situation, we intend to disclose our earnings
forecast as soon as possible.
16

Financial Results Briefing

３. Mid-Term Management Plan Progress
and Topics

17

FY03/20

3 KPIs in Mid-Term Management Plan
We achieved mid-term management plan targets in FY03/20.
FY03/21 earnings forecast on hold due to COVID-19
KPI
FY03/19

FY03/20 actual

FY03/21

FY03/27

Basic policy

KPI

Transform
human
resources andthe organization• Employee Engagement
Survey (*1)
• No. of days work sites
are closed (*2)

ＢＢ

ＢＢ

ＢＢＢ

Ａ

Closed for 5 to 6 days /4 weeks

Closed for 5 to 6 days /4 weeks

Closed for 7 to 8 days /4 weeks

Closed for 8 days /4 weeks• Customer satisfaction (*3)

95%

97%

100%

100%

• Safety index (*4)

0.43

0.09

0.10 or less0.10 or less17.2 ton-CO2 / ¥0.1 billion(42% down)（in FY2017)18.0 ton-CO2 / ¥0.1 billion(39% down)（in FY2018)23.2 ton-CO2 / ¥0.1 billion(22% down)

20.0 ton-CO2 / ¥0.1 billion(32% down)

6.6%

6.3%

6.3%

7.0% or more

¥331.4 billion¥322.1 billion¥312.0 billion¥350.0 billion

18.1%

15.4%

13% or more

10% or more

¥92.6 billion¥101.2 billion¥110.0 billion¥150.0 billion

or moreor moreEnhancedomestic
construction
business

Diversify
revenue sources
Enhancemanagement
and financial
foundations• Emission of CO2 (*5)• Consolidated operating
income margin• Consolidated sales• ROE• Consolidated core
capitalor more*1: “Motivation Cloud” engagement rating by Link and Motivation Inc. The survey covers all employees of the entire Tokyu Construction group, including subsidiaries. “BB” is the fifth highest level on ascale of 11 levels.
*2: Our target covers new work sites of Tokyu Construction (parent company) starting from FY 2018 (excluding the offices in which application is difficult).
*3: Rate of customer satisfaction for Tokyu (parent company) in private sectors (answering “Yes, we are definitely happy to order / Yes, we can also order.”): Average 95% during FY 2014-16.
*4: Safety index of Tokyu (parent company): √ (Frequency rate x Strength rate)*5: Specific energy consumption (base unit) per construction sales of our parent company Tokyu (ton-Co2 / ¥0.1 billion) (The reduction rate is compared to that of our FY 1990.) The standard value of
Tokyu (parent company) in FY 1990 is calculated based on the figures recorded in FY 1990 in the “CO2 Emission Survey Report” issued by Nikkenren (Japan Federation of Construction Contractors). 18

3 Topics 1 Improving Employee Engagement
Winner of the Best Motivation
Company Award 2020
Placed 7th in employee engagement
among major corporations
In recognition that human resources are the most important
asset in the general contractor industry, where technologicaldifferentiation is quite difficult, Tokyu Construction is working
to reform the corporate culture and position “job satisfaction
and abilities of each employee” as a core competence.
Group initiatives
 All employees are provided with updates
on organizational conditions, as well as
information on important issues andefforts aimed at their solutions
 Briefings are provided to all executives inorder to promote understanding of
departmental issues
 Management training and coachingsupport is provided for highly motivatedexecutives
 Good practices are shared in thecompany newsletter with the aim of
improving the corporate culture
throughout the group

Improving the sense of unity
through a renewed focus on thecompany and colleagues as we
commemorate the 60th
anniversary of the founding
Celebrating the 60th anniversary of its founding inNovember 2019, the company selected entries from2,800 employees on the “values they found importantin their work” (expressed as a single kanji character),and created a graphic incorporating these ideas fornewspaper advertisements, special website pages,
and novelty items such as eco-bags. The group also
made a video on the company’s origins to show its
trajectory to the younger employees.

Among the 1,568 companies
conducting the Link and Motivation
survey on employee engagementin 2019, Tokyu Construction
received the seventh highest
engagement score (based on theengagement deviation value) in the
major corporation category.

19

3 Topics 2 Environmental Initiatives
Received a B- rating in the
CDP Climate Change 2019
Questionnaire

Acquired SBT certification(WB2°C) for greenhouse gas
reduction targets

We participated for the
first time in the CDP
Climate Change
Questionnaire (2019)and received a B- rating,
CDP: a coalition of institutional
which is the fourth out
investors promotingof eight possible
information disclosure on
climate change initiatives
rankings.

Tokyu Construction in April 2020 received the Well
Below 2°C certification for its greenhouse gas
emissions reductions targets as part of its aim toaddress climate change.

ZEB renovations at Institute ofTechnology result in 78% energy
cut after two years
Achieved a 78% energy cut
two years after renovation,
the highest level in Japan.
We are targeting the practicaluse of buildings reducing
energy consumption toeffectively zero.
ZEB: Zero Energy Building(Sagamihara, Kanagawa
Prefecture)

SBT: Science Based Targets is aninternational initiative calling on
companies to set emissions
reduction targets consistent with
scientific standards in order tokeep the rise in averagetemperatures “below two degrees
Celsius” as agreed upon in the
Paris Agreement.

Initiatives aimed at achieving targets
 Construction sites: Promote the use of hybrid heavy machineryand energy saving equipment, a shift to electric equipment, andthe introduction of renewable energy-based electric power.
 Advancing energy saving buildings: Promote the ZEB concept,
which contributes to a sharp reduction in building energy use,
and advance proposals for buildings that exceed the standards
in the Building Energy Efficiency Act.
 Introduction of renewable energy-based electric power tobusiness locations, including the head office and branch offices.
20

3 Topics 3 Enhance Domestic Construction Business
Improving construction capabilities by using cutting-edge ICT and the showing the results of working as one teamTokyo Metro Ginza Line Shibuya Station
Construction Project
Relocation work on the Tokyo Metro Ginza Line has been in progress since2009. Third-round line switching work and platform relocation work wereconducted from December 27, 2019 through early morning January 3, 2020.
With companywide back-up, 1,000 employees (5,000 individuals including
partner-company employees) worked as one team on the project and the
new statin building was opened for the first train on January 3, 2020 asplanned.

BIM/CIM in relocation work
BIM/CIM (Building and Construction Information
Modeling/Management) is workflow deploying 3D models startingfrom the research and design stages. It is used in the managementof construction and production while adding attribute information(material, strength, etc.) to ensure quality management andimproved productivity.
In this project, both of head office and site office employees took
the lead in utilizing BIM/CIM by using general-purpose software
without relying on outside companies specializing in the area. The
process enabled rapid decision making, prevented the need forrework, and allowed for the consistent sharing of information
among many workers. It brings benefits for not only the contractor,
but also the ordering party and the facility users.
BIM/CIM:
Building/Construction Information Modeling,Management

Awarded the 2019
i-Construction OutstandingAward from the Ministry ofLand, Infrastructure,
Transport and Tourism

Switching operations(BIM/CIM model representation
and an actual photo)21

3 Topics 4 Enhance Domestic Construction Business
Our endeavors in large-scale wooden building construction with the use of digital technology and human ingenuity

The ROOFLAG rental housing future showroom
Using CLT to create one of the largest roof
structures in Japan
The project of ROOFLAG rental housing future showroom(Koto-ku, Tokyo), ordered by Daito Trust Construction,
was completed in March 2020. The facility features alattice beam structure with a maximum span of 60 meters,
making it one of the largest in Japan. The roof in thisunprecedented project is assembled using 128 CLT(cross-laminated timber) components to create anenormous space without any pillars.
We realized the wishes of the customer by fully utilizing
BIM and other digital tools and the human power ofcommunication, as well as problem-solving skills at worksites.
We will leverage the results of this project to promotefurther growth in the field of wooden building
construction, which is expected to expand moving
forward as people look for the natural warmth of woodand focus on reducing carbon dioxide emissions.
Cross-laminated Timber (CLT) is an orthogonal laminated lumber used in wood building construction.
While general laminated lumber bonds the direction of the fiber in laminated boards in parallel, CLT
is a thick board with increased strength thanks to laminating being orthogonal in each layer.

Viewable on YouTube

The ordering party, the designer,and the contractor worked as one
team to show the wonders of“manufacturing” in completing
this challenging structure.

22

3 Topics 5 Infrastructure Asset Management
Leveraging the strengths gained in railway construction to expand into compatible fields

ISO55001 certification, the international standard for asset management
First certification for a general contractor in the railway sector
With a view toward the full-scale entry into the infrastructure asset
management* business, Tokyu Construction in April 2019 created anorganized group to advance the practical application of efficientmaintenance-management technologies in the field of social infrastructure.
We acquired ISO 55001 (the international standard for asset management)
certification in April 2020.
We have long been involved in the construction, as well as the inspection,
analysis, and maintenance and repair of railway structures. Leveraging ouraccumulated data, we aim to prioritize repair schedules, thus allowing
efficient and optimal maintenance and management and formulation ofhighly reliable plans for even longer use of these structures.
We intend to further promote the maintenance and management of railway
structures in asset management operations and aim to expand the scope of
ISO 55001 certification to include areas outside of railways structures.
Infrastructure Asset Management (IAM) treats social infrastructure, including buildings and structures, as assets, and refers to the series of actions
necessary to maintain or restore the functions of these assets to a level at which they can provide the users with an appropriate level of service
from a socio-economic point of view.
Asset Management Systems seek to ensure optimal usability and profitability throughout the lifecycle of the organization’s assets though thebalancing of costs, risks, and performance. ISO 55001 stipulates the requirements for the establishment, implementation, maintenance, andimprovement of an organization’s asset management system. (Source: the Japan Accreditation Board website)

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This graphic, used to commemorate the 60th
anniversary of the company’s founding,incorporates submissions from about 2,800
employees regarding “the values you findimportant in your work” (expressed in a single
kanji character).

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

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