The First Half FY03/20 Financial Results Briefing
Nov. 15, 2019

Contents

The First Half FY03/20
Financial Results Briefing
1． Overview of the First Half FY03/20
Financial Results
2． Full-Year Forecast for FY03/20
3． Medium- to Long-Term Growth Strategy

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

Financial Results Briefing

1.

Overview of the First Half FY03/20
Financial Results (2019/4-9)

2

１ Business Environment
Business environment in 1H FY03/20
１．Despite lingering weakness, particularly in exports, the Japanese economy maintained its
gradual recovery track, supported by robust corporate earnings and sustained improvements inthe employment and income environments.
２．The construction market showed strength, thanks to firm public investment and private-sector
capital spending amid an ongoing improvement in corporate earnings.
３．Construction costs remained within the range of expectations thanks to subsiding
material/equipment costs, despite higher labor expenses.

Prospects
１．The Japanese economy is expected to gradually recover, benefitting from government policies aswell as improvements in corporate earnings and in the employment and income environments.
However, the outlook is still uncertain as we still need to be aware of the effects from theconsumption tax hike and the direction of overseas economies.
２．The construction market looks to retain its strength thanks to private-sector capital spending andgovernment investment aimed at disaster prevention and mitigations, as well as the “creation ofa resilient national land.”３．Amid large-scale redevelopment projects, largely in the major metropolitan areas, there is someconcern tightening supply/demand conditions could lead to a sharp rise in construction costs.
Among the numerous supply-side issues are work-style reforms, a reduction in long working
hours, and a shortage of labor as older workers retire in mass.

3

１ 1H FY03/20 Results (Consolidated)
Consolidated net sales (including at the parent and subsidiary levels) exceeded the previousyear level to reach a record high.
Profit attributable to owners of parent also reached a record high thanks to improved profit at
the parent and an earnings recovery at the subsidiaries.
(Millions of yen)
1H FY03/20

Items

1H FY03/19

Tokyu
Construction

Subsidiaries

Consolidated

Differencecompared
to previous
year

Rate ofchangeNet sales

154,697

170,452

13,934

183,415

28,717

18.6%

Gross profit

17,56822,353

1,683

23,928

6,359

36.2%

Selling, general andadministrative expenses

6,671

7,352

420

7,608

936

14.0%

Operating income

10,897

15,001

1,263

16,320

5,423

49.8%

Ordinary income

11,36915,305

1,254

16,972

5,602

49.3%

Profit (losses) attributableto owners of parent

7,659

－

－

11,516

3,857

50.4%

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

Profit (losses)
attributable toowners of parent

(2)
824
(205)
(3)
(14)
9
607

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

Equity-method
profit (losses)

560
4
11
51
629
4

１ Factors Affecting Net Income (Consolidated)
1H FY03/20

Profit attributable to owners of parent reached a record high thanks to a substantial increase ingross profit on completed construction, despite year-on-year increases in tax expenses andGeneral and Administrative (SG&A) expenses.

Increase in
Increase incompleted equity-method
construction investment
gains
gross profit
363
6,196

Increase in tax
expenses
Increase in
Deterioration
1,702
SG&A
of nonexpenses
operating936
revenue
Increase in183
real estate
income162

7,659(Millions of yen)

11,516

Increase in profit
attributable tonon-controllinginterests
42

1H FY03/20
Profit attributableto owners ofparent1H FY03/19
Profit attributableto owners ofparentProfit increase

Profit decline
51H FY03/20

１ 1H FY03/20 Results (Non-Consolidated)
Net sales increased 15.3% year on year amid progress in large-scale construction and civilengineering joint-venture subcontracting work.
Net income grew 35.6% year on year amid a strong improvement in gross profit on completed
construction projects.
(Millions of yen)
1H FY03/20

Items

1H FY03/19

Results

Ratio(%)

Differencecompared
to previous
year

Rate ofchangeCompleted construction sales
Civil engineering
Building construction

147,247
28,105
119,141

169,777
43,226
126,551

(100)
25.5
74.5

22,53015,120
7,409

15.3%
53.8%
6.2％

Completed construction gross profit

Civil engineering
Building construction

16,6093,546
13,062

21,976
4,113
17,862

12.9
9.5
14.1

5,367
567
4,799

32.3%
16.0%
36.7%

Real estate sales
Real estate gross profit

558
216

674
377

(100)
55.9

115
160

20.8%
73.9%

147,806
16,825

170,452
22,353100
13.1

22,645
5,527

15.3%
32.8%

6,412

7,352

4.3

939

14.7%

Operating income

10,41315,001

8.8

4,587

44.1%

Ordinary income

10,802

15,305

9.0

4,502

41.7%

Net income

7,776

10,548

6.2

2,771

35.6%

Net sales
Gross profit
Selling, general and administrative
expenses6

１ Net Sales (Non-Consolidated)
1H FY03/20

Completed civil engineering construction sales benefitted from progress in large-scale jointventure subcontracting work. Large-scale projects, including in Shibuya, contributed tobuilding construction sales growth.
Net sales including real estate sales, expanded 15.3% year on year to ¥170.4 billion.
Real estate

Net sales¥170.4 billion

Building
Construction
Civilengineering(+15.3% YoY) Completed construction sales
Civil engineering¥43.2 billion(Millions of yen)

170,452
147,806

123,764558

828(+53.8% YoY)

Building construction ¥126.5 billion(+6.2% YoY)

 Real estate sales¥0.6 billion(+20.8% YoY)674

94,198

119,141

126,551

28,737

28,10543,226

1H FY03/18

1H FY03/19

1H FY03/20

7

１ Gross Profit (Non-Consolidated)
1H FY03/20

The civil engineering profit margin dropped 3.1pp year on year due to a high ratio of relatively
low margin joint-venture subcontracting work and an unexpectedly high number of designchange/addition projects received in the previous year.
The building construction profit margin exceeded expectations on improved profitability,
mainly in large-scale projects, and higher completed construction sales.
土木
Real estate profit showed a steady increase as profitableproperty acquisitions exceeded
建築
expectations in the previous year.
14.1% ＋3.1P
12.3%

Gross profit

12.6%

△3.1P

22.3 billion

¥

11.0%

(+32.8% YoY)

(Millions of yen)

9.1%



Civil engineering
Building construction¥4.1 billion

14,473(+16.0% YoY)259

¥17.8 billion(+36.7% YoY)

16,825Completed construction gross profit

Real estate gross profit ¥0.3billion(+73.9% YoY)

11,6099.5%

22,353Civil engineering

377

Building
construction

17,862

Real estate

216

13,062

2,604

3,546

4,113

1H FY03/18

1H FY03/19

1H FY03/20

Building
Construction
Civilengineering81H FY03/20

１ Financial Position and Cash Flow (Consolidated)
Net assets increased to ¥101.0 billion due to the accumulation of retained earnings. The equity
ratio was 39.7%. Operating cash flow was negative owing to such factors as relaxing payment
conditions for partner companies.
[Consolidated Financial Position](Millions of yen)
YoY change ＋8,091
March 31,2018

March 31,2019

Sep.30,2019

Rate ofchangeTotal assets

249,756

264,996

253,876(4.2％)

Total liabilities

170,581

172,014

152,802(11.2％)

1,721
83
1,638

1,638
80
1,557

19,59718,081
1,516

ー％ー％(2.6％)Net assets

79,17592,981

101,073

8.7％

Equity ratio

31.6%

35.0%

39.7%

+4.7pp

Items

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

1H FY03/18

1H FY03/19

1H FY03/20

Cash flows from operating activities(362)

18,849(46,093)

Cash flows from investing activities(679)(1,487)(2,529)Cash flows from financing activities(4,312)(2,191)

15,776

(17)

(9)

(197)

Net increase (decrease) in cash and cash
equivalents(5,372)

15,161(33,043)

Cash and cash equivalents at end of year

17,21044,027

16,101

Effect of exchange rate change on cash
and cash equivalents

・Profit attributable to owners of the parent ＋11,516
・Remeasurements of defined benefit plan - 1,636,
etc.

Equity ratio+4.7pp

31.6%

39.7%
35.0%

(Millions of yen)[Consolidated Cash Flow]
Items

・Dividends of surplus -2,134

Net
assets
79,17592,981

101,073
Interestbearing
liabilities
19,597

1,721

1,638

March 31,

March 31,

Sep. 30,

2018

2019

2019

9

１ Orders (Non-Consolidated, Company-Wide)
1H FY03/20

Company-wide orders fell 25.9% year on year in reaction to large-scale overseas orders
received in the previous year.
Overseas
Tokyu
Group

(Millions of yen)

1H FY03/20

Differencecompared
to previous
year

Rate ofchangeCompany-wide

9,741

Domestic
private60,477

Generalprivate48,030Tokyu Group
companies

12,447(1,568)(11.2％)

Overseas

1,518(19,233)(92.7%)

71,738(25,096)(25.9％)

(403)
1,165

128,108

Public2,177
96,834

Domestic
public(5,460)Private(35.9％)

52,11320,751(0.7％)

14,0152.5％
55,192

46,86571,738
1,518
12,44748,03018,624

15,2029,741

1H FY03/18

1H FY03/19

1H FY03/20
10

１ Orders (Non-Consolidated, Civil Engineering)
1H FY03/20

Overseas orders dropped sharply in reaction to large-scale orders in Myanmar in theprevious year.
The overall downturn at 26.6% with domestic private-sector construction orders expanded.
Overseas
Tokyu
Group
Private(Millions of yen)

1H FY03/20

Differencecompared
to previous
year

Rate ofchange(2,609)(32.0％)

Civil engineering

5,538

Domestic
private21,464

11,437114.1％

Generalprivate16,34914,120633.6％

Tokyu Group
companies

5,114(2,683)(34.4％)

Overseas

1,546(19,173)(92.5%)(10,344)

Public28,550

Domestic
public28,55038,895(26.6％)

21,627

20,720

1,546
5,114

505
7,508
7,797
4,268

9,345
1H FY03/18

16,3492,228
8,148
1H FY03/19

5,538
1H FY03/20
11

１ Orders (Non-Consolidated, Building Construction)
1H FY03/20

Domestic private-sector orders declined year on year.
Orders were down 25.5% on an overall basis, without any large-scale orders received throughthe end of the first half of FY03/20.
Overseas
Tokyu
Group
Private(Millions of yen)

106,481

Building construction

1H FY03/20

Differencecompared
to previous
year

Rate ofchange

1,671

Domestic
public4,203(2,850)(40.4％)

44,605

Domestic
private39,013Generalprivate31,680Tokyu Group
companies

Overseas

7,332
(28)
43,188(11,841)(12,955)
1,114(23.3％)

57,93931
6,217(29.0％)
17.9％

Public50,924

7,332
44,636

31,680(59) (190.3 %)(14,751)(25.5％)*The negative figure for overseas orders reflects the impact from changes
to previous-period contracts.

43,188

9,279

7,054

1H FY03/18

1H FY03/19

4,203
△ 28

1H FY03/20
12

Financial Results Briefing

２．Full-Year Forecast for FY03/20

13

２ Full-Year Forecast for FY03/20 (Consolidated)[Consolidated profit/loss]¥320.0 billion(-3.5% YoY)
Profit or loss attributable toowners of parent ¥12.7 billion
Net sales(-18.1% YoY)

[Non-consolidated profit/loss]¥297.0 billionNet salesOperating income ¥15.9 billion
Profit attributable to owners ofparent¥10.9 billion

Revising up our consolidated net sales estimate from
our initial forecast by ¥5.0 billion and our net profit
attributable to owners of parent forecast by ¥4.0 billion.
[Reason for revising our profit forecast]
Upward revision to gross profit on completed
construction thanks to improved project profitability,
largely at the non-consolidated level.
[Breakdown of non-consolidated sales and gross profit]

Net sales
Completed construction sales
Civil engineering
Building construction
Real estate sales(YoY change)¥297.0 billion (-4.2%)¥295.7 billion (- 4.2%)¥84.5 billion (+20.1%)¥211.2 billion (-11.4%)¥1.3 billion (-1.8%)[Dividend forecast]Gross profitCompleted construction gross profit ¥31.1 billion (-6.7%)
Civil engineering¥7.6 billion (-23.2%)
Building construction¥23.5 billion (+0.3%)
Real estate gross profit¥0.7 billion(ー%)¥30 (interim ¥10, year-end ¥20)

¥31.8 billion (-4.7%)

14

２ Completed Construction Sales and Gross Profit
Full-Year Forecast for FY03/20(Non-Consolidated, Civil Engineering)

We initially expected a gross margin of 7.8%, reflecting the dropout of temporary factors (suchas an unexpectedly high number of design change/addition projects) and progress in a
number of low-margin projects, including joint-venture subcontracting work, but now expect agross margin of 9.0% on acquisition of additional projects.

[Civil Engineering]

Profit margin

14.1(Initial forecast)¥84.5 billion ¥77.4 billion(+20.1% YoY)Completed construction salesCompleted construction gross profitCompleted construction profit margin 9.0％

¥7.6 billion(-23.2% YoY)

¥6.0 billion

%
9.7%

7.8%
Completed
construction
sales(Reference) Construction work carried forward
FY03/18
Orders76,784

FY03/19

77,7669.0%

54,000Completed
construction
sales

73,86370,381

84,500Construction
carried forward to
next fiscal year

134,620

142,004

111,504(Millions of yen)Orders

FY03/20(Forecast)

73,86376,784
FY03/18

70,381
77,766
FY03/19

84,50054,000FY03/20
Forecast15

２ Completed Construction Sales and Gross Profit
Full-Year Forecast for FY03/20(Non-Consolidated, Building Construction)

Large-scale construction orders received in the previous fiscal year were generally completed
in the first half of FY03/20, with the completed construction sales expected to decline in thesecond half.
Strategic acceptance of some projects and sharp rise in costs is expected to reduce
profitability on projects in progress in the second half, but we revised up our initial profit
margin forecast by 2.6pp on the contribution from unexpectedly strong profit improvements inthe first half of the fiscal year. We will continue to reduce costs and improve profitability
through revisions to production systems and improving efficiency in construction.

[Building construction]Completed construction sales¥211.2 billion(-11.4% YoY)Completed construction gross profit¥23.5 billion(+0.3% YoY)Completed construction profit margin 11.1%(Reference) Construction work carried forward
FY03/20(Forecast)

FY03/18

FY03/19

Orders214,552

185,287

200,000

Completed
construction
sales

236,898

238,241

211,200

Construction
carried forward to
next fiscal year

264,206

211,253

200,053(Initial forecast)¥214.4 billion

Profit margin
11.6%

9.8%

11.1%

¥18.2 billion(Millions of yen)

8.5%
Completed
construction
sales

236,898

Orders214,552

FY03/18

238,241

185,287

FY03/19

211,200

200,000

FY03/20
Forecast 16

２ Non-Consolidated Orders
Full-Year Forecast for FY03/20

Orders¥254.0 billion(-3.4% YoY)

Civil Engineering

FY03/20(Forecast)¥54.0 billion
Domestic public

27,000(4.2%)¥200.0 billion

Domestic private

25,400(4.5%)

General private

17,40043.8%

Tokyu Group
companies

8,000(44.8%)

Overseas

1,600(93.0%)

54,000(30.6%)

Domestic public

20,000(10.0%)

Domestic private

176,000

7.9%

General private

146,000

2.1%

Tokyu Group
companies

30,00049.1%

Overseas

4,000－

200,000

7.9%

254,000(3.4%)(+7.9% YoY)

Orders2,913
69(100 millions of yen)

2,630

2,129

2,540
56
Overseas

1,852

1,960

714

547

524

2018年
FY03/18

2019年
FY03/19

2020年
FY03/20

3月期

3月期

3月期予想
Forecast

Domestic
Building
Construction
Domestic
Civil
Engineering

Building
Construction

230

Rate ofchange(-30.6% YoY)
Civil
Engineering

Building Construction

Despite expecting a decline in orders overseas, we expect a
year-on-year improvement in orders in Japan.Competition
appears fierce in some areas, but we expect to secure orders
in line with our initial forecast of ¥254 billion as we continue
to tap into robust demand in the market.
(Millions of yen)

Total

17

２ Topics ①[Advancing on-site capabilities though operational innovation]
We aim to adopt the various ICT/IoT technologies thus far introduced and verified on an
individual basis, on a work site on a comprehensive basis, with effects apparent not only fromthe application of an individual technology, but also evident on a grand scale from their
combined use.

We are putting construction site management into practice using a variety of ICT/IoT technologies, and showing the results, at the ICT model site,
18
tentatively named the Funabashi City No. 2 Elementary School After-School Room New Construction Project.

２ Topics ②[Environmental efforts]
Renovating to a Zero-Energy Building (ZEB)

Green Infrastructure Demonstration Facility

We carried out ZEB renovation on a 25-year oldtechnical institute rather than rebuilding it,
achieving the highest level of energy reduction in
Japan.
Amid growing calls to achieve a decarbonizedsociety, we aim to further improve our technicalcapabilities in order to create zero-energy buildingsthat meet growing demand for ZEB renovation ofolder buildings.

We established a green infrastructure demonstration
facility in March 2018 and through the collection andanalysis of data will further improve element
technologies.
The facility focuses on using the functions of thenatural environment to promote the preservation of
biodiversity and to devise prevention and mitigation
measures, including in regard to localized torrential
rain, which has become more frequent in urban
areas.

19

Financial Results Briefing

3．Medium- to Long-Term Growth Strategy

20

３

Recognizing changes in the business environmentin accordance with SDGs
Management Policy
We will help each person realize his or her dream through creating
comfortable living environments that allow peace of mind

In response to diversifying values, we will continue to provide products and services seen as valuable to consumers, nurture the dreams ofeach of our customers, and pass on to the next generation a beautiful environment as well as the values and technology to support it.

Our Goals

Changes in the Business Environment
Intensifying labor shortage

Promotion of M&A andalliances aimed at securing
construction capabilities

Increase of demand for renovation

Focus on shifting from onetime to recurring-revenue
businesses

Utilization of strengths toadopt a more active orderapproach

Increased necessity toenhance productivity
Shift from labor-intensive tocapital-intensive operational
model

21

３ Strategic Direction BasedBusiness
environmentchangesⅠ

Intensifying labor shortage

Expansion of renovation demand (qualitative changes in demand)

Growing need for productivity
improvements

Promotion of alliances and
M&A aimed at securing
construction workers

Focus on shifting from onetime to recurring-revenue
businesses

Shift from labor-intensive tocapital-intensive operational
model

Tokyu Construction’s strategic direction

Rapid response toconstruction resource
shortages• Secure construction resourcesfrom a medium to long-term
perspective through strengthened
cooperation (alliances or M&A)
with local top-tier generalcontractors and partnercompanies

Tokyu Construction

Ⅱ

Expansion anddiversification of businessportfolioⅢ

Utilization ofcomprehensive strengthsof Tokyu GroupⅣ Enhancement of on-site• Target business portfolio resilient
to changes in environment byactively engaging in businesses
with a strong recurring-revenue
aspect, such as renovations• Strengthen proposal and project
origination capabilities in order to
respond to various needs, suchas utilization of land, renovations,and increasing property values• Innovate operations throughinvestment in and early adoptionof cutting-edge technology froma medium to long-term
perspective, and aim for further
improvement of on-site
capabilities

Customers

Tokyu Construction

Utilize comprehensive
capabilities of Tokyu Group

Enhance sophistication of constructionindustry through early adoption of
cutting-edge technology

Increase recurringrevenue business

Secure construction
resources via cooperation
with other companies

Regional blue-chip
general contractors, etc.

Partner company network

Utilization of strengths toadopt a more active orderapproachConstruction
subcontracting(One-time revenue
businesses)

Group
cooperation
Tokyu
Construction

capabilities throughoperational reforms

New
construction
methods

IoT
Tokyu
Group

AI

Robot

Problemsolving

Solving social issues through realizing and advancing the “urban solutions business”
22

３ Fleshing out Urban Solutions BusinessIn addition to strengthening cooperation with the Tokyu Group, a key source of strength for theCompany, we will build and strengthen a comprehensive value chain and expand solutions throughthe pursuit of M&A and alliances, as well as the active recruitment of employees, including for thedigital shift.
General picture of the urban solutions business and necessary action
Project
sourcing

Property
proposals

Tokyu Construction
functions

Tokyu Groupfunctions

Business overview by step

Ensure interaction with customers
from upstream

local informationand customer
networks

Proposal capabilities
other than design andconstruction

Design,construction

Tenant leasing

Maintenance andmanagement

Renovation

Areas to strengthen
going forward

Tokyu
Construction

Tokyu Group

Flexible construction
capabilities

Leasing

Required action

Collect information on
challenges and needsof local companies andlandowners

In addition to designand construction, makeproposals on property
utilization (leasing, etc.)

Secure partners to takeon small-scale projects
that are difficult for Tokyu
Construction to handle

 Consolidate local
information ofvarious Tokyu
Group companies

 Make joint
proposals with
Tokyu Group
companies

 Form alliances withlocal top-tier generalcontractors andengage in M&A

 Form alliances withlocal top-tier generalcontractors andengage in M&A

 Hire humanresources withproperty leasing
expertise Enhance on-site
capabilities throughoperational reforms

Ensure continuousinteraction with customers

Tokyu Renewal

Tokyu Group
Construction
capability

Leverage comprehensive
capabilities of Tokyu Group to
support all aspects throughoperation

 Hire personnel withproperty leasing
expertise Strengthen
cooperation within
Tokyu Group Strengthen
cooperation within
Tokyu Group

Handle all aspects
through renovations,and ensure long-term
contact with customers

 Engage in M&A ofrenovation specialists
and other business
operators
 Enhance on-site
capabilities throughoperational reforms

23３Efforts to realize the urban solutions business by region
After assessing the potential for business in each region, we select focus areas. In addition tocollecting information on major projects in the area, we conducts activities aimed at capturing
demand in peripheral regions.
Focus Areas

Tenjin Big Bang
Hakata Connected
Waterfront Next

Activities aimed at capturing demand in the areas
mentioned on the left

Securing
information
sources

 Ensuring information sources with deeproots in the area, including throughcollaboration with regional banks and byconnecting to human networks such as local
economic groups

Securing
construction
capacity Considering M&A/alliances in line with thebuilding of relationships with local
companies through efforts such as businesssuccession support
 Considering M&A/alliances with agile
construction companies in order to gain achance at winning orders in areas
peripheral to redevelopment projects

Strengthening
cooperation
with theTokyu Group Bolstering ties with Tokyu Group companies
to strengthen ability to offer proposals inareas outside tenant leasing anddesign/construction

Osaka Expo
Osaka Expo to take placein Yumeshima

Urban development andredevelopment plan being
promoted by City of Fukuoka

Urban redevelopment
Redevelopment plans, in the
Shibuya area and mainly for after
the Tokyo Olympics

Hotel Development
Resort hotel development
plans, mainly on outlying
islands24

３ Initiatives in the Greater Shibuya Area
There are a great number of aging small and medium-sized buildings in the Greater Shibuya
area, defined as the Shibuya Station area and surrounding areas. Given the concentrated flowof tenants to buildings in large-scale redevelopment projects, we are building an urban
solutions business that cultivates growing demand to increase value in existing buildings in
the peripheral areas.
Target market

Office building age pyramid (Building count, Tokyo’s 23 wards)

Redevelopment centered around Shibuya Station
Surrounding areas where the company is focusing(Greater Shibuya area)

Tokyo’s 23 wards: 9,206 buildings
Small to medium-sized (floor areaof 992–16,529 sqm): 8,459 buildings

Large-scale
redevelopment(Centered around
Shibuya Station)

Under old earthquake
resistance standards:
2,220 buildings (26%)
20 years old or older:

7,380 buildings (87%)

Building age (years)

Demand to increase value in the
Greater Shibuya area

Large (floor area of 16,529
sqm or more): 747 buildings

Under old earthquake
resistance standards:
138 buildings (18%)

Less than 20 years old:
1,079 buildings (13%)

Tenants flocking to
the Shibuya Stationarea

20 years old or older:

411 buildings (55%)

Less than 20 years old:
336 buildings (45%)

Number of buildings

Source: Xymax Real Estate Institute Corporation25

３ Our role in the Greater Shibuya area
Our ample record of achievements around Shibuya has been instrumental in building a solid
relationship of trust with local neighborhood associations and shopping districts. Leveraging
this strength, we will act as a point of contact and liaison in building communities in the Greater
Shibuya area.
Consultation

Shibuya neighborhood
associations and shopping
districts

Point of contact /initial response

60 years of construction experience in Shibuya andfriendly relationships with neighborhood associations and shopping districts.

Tokyu
Construction’s
works in the Shibuya
Station area

26

３ Digital Shift of The Tokyu Construction
With the aim of preparing for digitalization and the changing needs of customers and themarket, Tokyu Construction is leading the industry by actively pursuing M&A and allianceswith partner companies for the coming digital shift.

Goals from conventional efforts

Conventional efforts

Building a digital platform(1) Dramatic production, safety improvements

Construction
process innovations

Utilizing BIM, CIM

Using sensing, IoT, bigdata, AI, robots

Developing the
upstream anddownstream value
chains(2) Improved reliability through quality
visualization(3) Improved efficiency in building/structure
maintenance(4) Value chain achieved through building of aplatform for construction process data andbuilding/structure maintenance data

Digital shift acceleration＋
Speed & open innovation
Pursuit of alliances with Tokyu Group and partnercompanies as well as aggressive M&A andinvestment in start-ups＝

An industry pioneer
Ahead of peripheral industry trends
and industry rivals

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