The First Half FY03/21 Financial Results Briefing
Nov. 17, 2020

Contents

The First Half FY03/21
Financial Results Briefing‫؝‬Business Environment
Overview of the First Half FY03/21
Financial Results‫؝‬Full-Year Forecast for FY03/21
‫؝‬Basic Mindset for Formulation of Vision
2030 and Long-Term Management Plan

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.
‫ ڭ‬Business Environment
Business Environment in 1H FY03/21‫؝ڭ‬The economy: COVID-19 continued to take a major toll on corporate earnings, and the job
market remained weak.
However, income held steady, and consumer spending is picking up.
‫؝ڮ‬The construction market: Government construction outlays picked up, but private sector
capex was down year-on-year as corporations revised business plans.
‫؝گ‬Construction costs: Labor and materials & equipment costs both held steady.

Prospects‫؝ڭ‬With measures in place to prevent the spread of COVID-19, the economy is expected tocontinue to recover at a gradual pace thanks to rising levels of socio-economic activity andthe effects of various government policies.
‫؝ڮ‬Although COVID-19 will affect private-sector construction investment, the construction
market should hold up thanks to strong demand expected for certain applications andgovernment construction budgets, notably for disaster prevention and mitigation.
‫؝گ‬In addition to mounting international environment-consciousness, the construction
business also faces the unique challenge of structural reform in construction production
systems, such as changes in demand for recurring-revenue business, serious labor
shortages, and work style reform.
Financial Results Briefing‫؝ڮ‬Overview of the First Half FY03/21
Financial Results (Apr.–Sep. 2020)
9 1H initially expected to be a slow period as major projects played out
9 Consolidated net sales half of previous year’s record high, due inpart to the COVID-19 pandemic
9 Orders up more than 70% year-on-year, thanks largely to building
construction orders‫ ڮ‬+FY03/21 Results (Consolidated)
Consolidated net sales were down 48.0% year-on-year, profit attributable to owners of parent
was -93.4%.
Both net sales and profit were down sharply from record-highs a year ago amid peak in major(Millions of yen)projects.
1H FY03/21

Items

1H FY03/20

Tokyu
Construction

Subsidiaries

Consolidated

Differencecompared
to previous
year

Rate ofchangeNet sales

183,415

87,677

8,224

95,423(87,992)(48.0%)

Gross profit

23,928

7,504

940

8,323

(15,604)(65.2%)

Selling, general andadministrative expenses

7,608

6,869

429

7,130

(477)

(6.3%)

Operating income

16,320

635

511

1,192

(15,127)(92.7٫)Ordinary income

16,972

1,076

500

1,680

(15,291)(90.1٫)Profit (losses) attributableto owners of parent

11,516

ٕٕ

759(10,757)(93.4٫)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

(21)
304
(58)
(36)
11
7
208

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

Equity-method
profit (losses)

426
(9)
59
45
522


1H FY03/21‫ ڮ‬Factors Affecting Net Income (Consolidated)
Profit attributable to owners of parent was down due to sharp decline in completed
construction gross profit.
Extraordinary losses consisted of write-downs on investment securities.

(Millions of yen)

11,516

Increase in Decline in Decline intax
real estate SG&A
expenses
expenses
income4,769
477
59
Decline incompleted
1H FY03/21
constructionExtraordina
gross profit ry losses
Profit attributable
15,664(writeto owners ofdowns onparentinvestment
securities, Decline inequity284
method759
investment Other
gains declines,
107
7

1H FY03/20
Profit attributableto owners ofparentProfit increase

Profit decline1H FY03/21‫ ڮ‬1H FY03/21 Results (Non-Consolidated)
Net sales were down 48.6% year-on-year due to decline in completed construction sales inboth civil engineering and building construction as major projects played out.
Net income was down 95.6%, mainly due to drop in completed construction gross profit
from building construction.
(Millions of yen)
1H FY03/21

Items

1H FY03/20

Results

Ratio(%)

Differencecompared toprevious year

Rate ofchangeCompleted construction sales
Civil engineering
Building construction

169,777
43,226
126,551

86,89930,53856,360

(100)
35.1
64.9

(82,878)(12,687)(70,191)(48.8%)(29.4%)(55.5%)

Completed construction gross profit

Civil engineering
Building construction

21,976
4,113
17,862

7,086
2,604
4,482

8.2
8.5
8.0

(14,889)(1,509)(13,380)(67.8%)(36.7%)(74.9%)

Real estate sales
Real estate gross profit

674
377

777
418

(100)
53.8

103
41

15.4٫
10.9%

170,452
22,35387,677
7,504

100
8.6

(82,774)(14,848)(48.6%)(66.4٫)

7,352

6,869

7.8

(482)

(6.6%)

Operating income

15,001635

0.7(14,365)(95.8%)

Ordinary income

15,305

1,076

1.2(14,229)(93.0%)Net income

10,548464

0.5(10,083)(95.6%)Net sales
Gross profit
Selling, general and administrative
expenses1H FY03/21‫ ڮ‬Net Sales (Non-Consolidated)
Civil engineering sales declined in a fall-off from major joint-venture subcontracting work recorded a year
ago.
Building construction was hit by a fall-off from Shibuya redevelopment and other major projects as well as
delayed receipt of orders in FY03/20.
The real estate segment purchased old rental properties with potential for synergy with the construction
business, targeting the Company’s strong areas of central Tokyo and along Tokyu rail lines.
Real estate

Net sales¥87.6billion‫ ق‬YoY ‫ك‬Building
Construction
Civilengineering

(Millions of yen)


z Completed construction sales

Civil engineering٧30.5 billion-29.4% YoY



Building construction ¥56.3 billion(-55.5% YoY)z Real estate sales¥0.7 billion(+15.4% YoY)
+)<





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

1H FY03/21‫ ڮ‬Gross Profit (Non-Consolidated)
Civil engineering was partially hit by the impact of COVID-19 on overseas work and few projects reachedcompletion, resulting in meager improvement on additional work.
Building construction profit margin was down 6.1pt from 1H FY03/20, which saw sharp improvement in
profit margin on major projects reaching completion.
Real estate earnings steadily benefitted from acquisition of income-generating properties as well as
improvement in rent through means such as renovation.
(Millions of yen)

Civil engineeringGross profit¥

7.5 billion(-66.4% YoY)
z




¥2.6 billion(-36.7% YoY)

Building construction

4.4 billion¥



3





Real estate gross profit ¥0.4billion(+10.9% YoY)







(-74.9% YoY)

z

3



Completed construction gross profit
Civil engineering

Building construction





+)<

+)<

+)<

Real estate
Building
Construction
Civilengineering1H FY03/21‫ ڮ‬Financial PRVLWLRQ and Cash Flow (Consolidated)
Net assets fell to ¥100.5bn due to dividends of surplus. The equity ratio was 39.7%.
[Consolidated Financial Position](Millions of yen)

YoY change 

March 31,2019

March 31,2020

Sep.30,2020

Rate ofchangeTotal assets

٫

ٔ

Total liabilities



٫嵣 Dividends of surplus , etc.









ٔ٫
ٔ٫
٫Equity ratio
ٔ3

Items

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

Net assets





٫Equity ratio







۟

[Consolidated Cash Flow]
Items






(Millions of yen)
1H FY03/20

1H FY03/21

Cash flows from operating activities

Cash flows from investing activities





Cash flows from financing activities







Net increase (decrease) in cash and cash
equivalents

Cash and cash equivalents at end of year



Effect of exchange rate change on cash and cash
equivalents

嵣 Profit attributable to owners of the parent




Net
assets

Interestbearing
liabilities

0DUFK

0DUFK

6HS








1H FY03/21‫ ڮ‬Orders (Non-Consolidated, Company-Wide)
Domestic public and domestic general private projects were both up sharply year-on-year.
Overall orders came to ¥122.3bn, 37% of the ¥325bn full-year forecast. The Company will
steadily obtain orders for scheduled projects going forward.
Overseas
Tokyu Group
Private(Millions of yen)

1H FY03/21

Domestic public

Differencecompared
to previous
year

Rate ofchange

٫

Public



Company-wide











٫

Generalprivate



٫Tokyu Group
companies



٫













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Domestic private

Overseas







+)<


1H FY03/21‫ ڮ‬Orders (Non-Consolidated, Civil Engineering)
Overall civil engineering orders were down 13.3% due to a fallback in domestic private sector
orders although domestic public sector orders were up sharply year-on-year.

Overseas

Tokyu Group
Private(Millions of yen)

1H FY03/21

Civil engineering

Domestic
public

PublicDifferencecompared
to previous
year

Rate ofchange

٫



Generalprivate

٫Tokyu Group
companies





٫









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٫

Overseas









Domestic
private



٫




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

1H FY03/21‫ ڮ‬Orders (Non-Consolidated, Building Construction)
General private-sector orders surged 126% year-on-year thanks largely to large-scale
logistics warehouse projects.
In October onward as well, the Company will steadily accumulate planned projects including
large-scale logistics warehouses and redevelopment along railway lines.
Overseas
Tokyu Group
Private1H FY03/21



Differencecompared
to previous
year

Rate ofchange٫

Building constructionDomestic
private

Generalprivate

Tokyu Group
companies



٫





嵤

Overseas


Domestic
public



Public(Millions of yen)






٫








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٫


Financial Results %ULHILQJ‫؝گ‬Full-Year Forecast for FY03/21
9 Aug. 6 announced full-year forecast revised in light of the impact of
COVID-19
9 Consolidated net sales forecast revised to ¥230bn (from ¥244bn)
9 Operating income forecast revised to ¥4.0bn (from ¥6.8bn) due todecline in completed construction gross profit, and profit attributableto owners of parent revised to ¥3.0bn (from ¥5.1bn)‫ گ‬Full-Year Forecast for FY03/21[Consolidated profit/loss]¥230.0 billion(-28.6% YoY)z

Net salesz¥4.0 billion(-80.3% YoY)
Profit or loss attributable to ownersof parent¥3.0 billionzAug. 6 announced full-year forecast was revised
down on account of emerging COVID-19 impact.
Sales and profit were down sharply year-on-year due
to the Company’s own unique factors, namely
playing out of large-scale work such as Shibuya
redevelopment, as well as the impact of COVID-19.

Operating income(-79.9% YoY)

[Non-consolidated profit/loss]¥214.0 billionz

Net saleszOperating income[Breakdown of non-consolidated sales and gross profit](YoY change)

Net sales
Completed construction sales
Civil engineering
Building construction
Real estate sales¥214.0 billion (-27.8%)¥212.4 billion (- 28.0%)¥72.6 billion (-17.6%)¥139.8 billion (-32.4%)¥1.6 billion (+15.0%)¥3.0 billion[Dividend forecast]z(Consolidated)¥10 (interim ¥0, year-end ¥10)

Gross profit¥18.2 billion (-45.0%)

Completed construction gross profit ¥17.5 billion
Civil engineering¥6.6 billion
Building construction¥10.9 billion
Real estate gross profit¥0.7 billion(-46.9%)(-19.7%)(-55.9%)(+361.0%)‫ گ‬Factors Contributing to YoY Change
Full-Year Forecast for FY03/21

in Full-Year Outlook

Consolidated
profit/loss

Full-Year Forecast Difference compared
to previous year
for FY03/21
Millions ofyen

Net sales

Rate

Millions ofyen

2SHUDWLQJLQFRPH
  
Millions ofMillions of
Non-consolidated
Rate
profit/lossyenyenCompleted

construction sales
Civil engineering 

Building construction 
Real estate sales


Completed const  
ruction gross profit
Civil engineering Building construction   
Real estate profit 2XU
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As of Q2
projection(Nov. 9)(Aug. 6)
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Work carried forward at the beginning of the fiscal year down sharply due to playingout of large-scale work such as Shibuya redevelopment and plunge in orders received
in FY03/20
Profit not improving as expected due to shortage of work on hand reaching completion

9 Anticipated delays in order receipt and partial cancellations
9 Impacts greater than anticipated in Q1, taking a toll on FY03/21 earnings

4嵣 Delayed orders lead to decline in FY03/21 sales
嵣 Rising costs on overseas ODA projects
嵣 Loss of additional work obtained in FY03/21 due to delayed civil engineering project schedules,etc.

‫ گ‬Completed Construction Sales and Gross Profit
Full-Year Forecast for FY03/21(Non-Consolidated, Civil Engineering)Completed construction sales were down from previous year’s record high recorded on major jointventure subcontracting work.
Prospects for FY03/21 profit margin improvement are slim due to delays in project bidding because of
COVID-19, curbs on capex for railway-related work, thinner margins on major overseas work, andnumerous major projects whose completion will be postponed to FY03/22.

[Civil Engineering]Profit marginzCompleted construction sales¥72.6 billion(-17.6% YoY)z

Completed construction gross profit¥6.6 billion(-19.7% YoY)z

Completed construction profit margin 9.1٫





(Millions of yen)

(Reference) Construction work carried forward
FY03/19
OrdersCompleted
construction
sales
Construction
carried forward
to next fiscal
year

FY03/20

FY03/21(Forecast)











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Completed
construction
sales
Orders)<
)RUHFDVW‫ گ‬Completed Construction Sales and Gross Profit
Full-Year Forecast for FY03/21(Non-Consolidated, Building Construction)
Completed construction sales declined in FY03/21 due to playing out of Shibuya redevelopment and otherlarge-scale projects, and postponement of orders and construction starts on large-scape projects due to
COVID-19.
Factors leading to lower profit margin include lower profits due to competition, and poor prospects for
major improvement due to shortage of work on hand reaching completion in FY03/21.
However, FY03/21 orders have maintained initial levels, and work carried forward to FY03/22 is expected
to rise.

[Building construction]zCompleted construction sales¥139.8 billion(-32.4% YoY)z

Completed construction gross profit¥10.9 billion(-55.9% YoY)z

Completed construction profit margin 7.8%





(Millions of yen)



(Reference) Construction work carried forward
FY03/19

FY03/20

FY03/21(Forecast)

Orders





Completed
construction sales





Construction carriedforward to next fiscal
year





Profit margin

Orders

)<

Completed
constructionsales

)<

)<
)RUHFDVWFull-Year Forecast for FY03/21‫ گ‬Non-Consolidated Orders
Orders¥325.0 billion(+68.1% YoY)

Civil Engineering

Although FY03/21 earnings are expected to be down,orders, a leading indicator, are expected to come infrom large-scale warehouses and other relatively solid
areas in spite of COVID-19.
(Millions of yen)
FY03/21(Forecast)¥69.0 billion

Domestic public

Domestic private



General private





Tokyu Group
companies











‫ڴ‬

Domestic public



Domestic private



General private

Tokyu Group
companies





٫





 (+6.8% YoY)

¥256.0 billion(+98.9% YoY)

Overseas

Orders(100 millions of yen)




Overseas











)<

)<

)<
)RUHFDVW

Domestic
Building
Construction
Domestic
Civil
Engineering

Building
Construction









Civil
Engineering

Building Construction

Overseas

Total

Rate ofchange‫ گ‬Topics ⋇ Use of Digital Technologies
We are strengthening construction business and searching out new potential using digitaltechnologies in partnership with various leading edge companies based on BIM/CIM data.

From individual Virtual Reality toshared Virtual Reality

Proving trials for use in building
confirmation

Start of proving trials to accelerate information
sharing and consensus building atconstruction sites using a virtual space wheremultiple people can gather at the same time

Mixed Reality-based simulated screening as astep toward use of BIM data in building
confirmation

We are running proving trials jointly witha confirmation inspection institution
using Microsoft’s HoloLens 2 mixed
reality device and BIM. With centralizedcomparison of chart data submitted for
confirmation and actual structures, wewill aim to boost inspection efficiency and precision.
(Simulated Inspection: [tentative name] Nishi-Kawaguchi
Plan New Construction Project Site)
Tokyu Construction conducts legal checks jointly with theconfirmation inspection institution to ensure flawlessinternal pre-inspection and boost building quality. We arealso searching out other uses for Mixed Reality.

HoloLens 2

The “Ricoh Virtual Workplace” from Ricohenables multiple people to meet in the sameplace simulated in Virtual Reality. This solution uses a
range of features to enable natural, free communicationeven with people separated by physical distance, and wewill verify its effectiveness for possible commercializationin the future.

‫ گ‬Topics ⋈ Action on Climate Change
Amid growing calls for carbo-free society, we are aggressively working toward solutions tothe challenges posed by climate change.
Environmental
policy“We will work to prevent contamination andprotect the environment, and promote
environment-friendly management in orderto realize a ‘sustainable society’ that
achieves a harmonious balance between
the environment and the economy.”

Revision of environmental policy (April 2019)

We have set emissions reduction targets tokeep the rise in average temperatures “below
two degrees Celsius” as agreed upon in the
Paris Agreement. We aim to reduce FY2050
Scope 1 and 2 emissions by 100% vs. FY2018.

SBT(WB2Υ) certification acquired (April 2020)

Climate Change Related Initiatives

CDP initial reply (July 2019)
Evaluation: B minus(fourth highest among
eight grades from A to D)

Endorsement of TCFD (November 2020)

We endorse the recommendations of the TCFD, andwill expand disclosure going forward.

ͤCDP (Carbon Disclosure Project): International NPO that surveys, evaluates, and ranks companies’ climate change initiatives
ͤSBT(Science Based Targets): Framework for certifying and publicizing companies’ longer-term GHG emissions reductions targets based on theirconsistency with initiatives sought by the Paris Agreement‫پ‬7&)' Task Force on Climate-Related Financial Disclosures): A task force for accelerating the disclosure of consistent, comparable, reliable, clear,
and efficient climate related financial information‫ گ‬Topics ⋈ Action on Climate Change
Using our accumulated technologies to help reduce GHG emissions as well as makeproactive proposal for new business opportunities

ZEB (net Zero Energy Buildings)
ZEB renovations at Institution of Technology, which
was completed 25 years ago, commenced in 2016.
78% energy cut, the highest level in Japan, wasachieved in FY2019. We proactively propose
optimized design and administration in terms ofwellness and resilience as a ZEB planner.

A-Wing of Tokyo City University
With total floor space of 10,000sqm,
this new building is one of the largest
university halls in Japan. It was
designed ZEB Ready using Tokyu
Construction’s numerous accumulated
elemental technologies. (Construction
started in June 2020)

Seikitokyu Kogyo Co., Ltd.
head office building
Cramped urban office buildings
are considered problematic interms of ZEB, but Tokyu
Construction is working to achieve
ZEB design. (Construction to startin Spring 2021)

Use of reduced burdenmaterials
Use of CELBIC environment-friendly
concrete that reduces CO2 emissions
To meet the needs of the customer, one of
the world’s largest private companies in thereal estate business, we propose and use
concrete with newly certified properties,
thereby reducing CO2
emitted in overall building
cement production by
roughly 40%.
(Construction to start inMarch 2021)(Tentative name) New Ginza 5-Chome
Construction Project
Customer: Ginza Kabuki SPC
Financing: Grosvenor Limited
Design: Doone Silver Kerr
Design Supervisor: Mori Architect Design Office,Ltd.
CM: Fusion Management Platz Co., Ltd.



Financial Results Briefing‫ڰ‬. Basic Mindset for Formulation of Vision
2030 and Long-Term Management Plan
9 Following on from our Vision 2020, we are currently formulating
our “Vision 2030” and 10-year “Long-Term Management Plan” forachieving that vision (scheduled to be released in May 2021).
9 We will present our basic mindset in light of current feasibility
studies, and steadily put them into action.

‫ ڰ‬From Vision 2020 to FY03/20 results
Vision 2020Market environment & earnings: The domestic construction market environment has improved significantly, and after rapid
recovery in business performance, it remained at a high level through FY03/20 that ended March 2020.

Construction business: Results were created on big projects in Japan and overseas, including redevelopment around Shibuya
Station.



New business domains: Although efforts have been made in the concession business and some results have been achieved,
they are not enough yet to form a pillar of earnings to complement construction business.

Capital policies: Equity ratio has reached 40%, and progress has been made on soundness of financial structure, which has
been an issue since the company split in 2003.

2010

Our Ideals for 2026 and2018–2020 Medium-Term Plan

Market environment & earnings: Favorable
environment to persist through FY03/21, on
which we plan to maintain strong earningsConstruction business: Market & customer
development/deep cultivation leading to
FY03/21 onward, ICT-powered productivity
improvement, and aggressive development inSoutheast and South Asia



New business domains: Accelerating expansion
into new business areas (real estate,concessions, etc.) while conditions in theconstruction market remain favorable

2018

2019

FY03/20 (previous fiscal year)While several high-profit large-scale construction products
completed in the previous fiscal year, we started out with theprospect of sharp profit decline due to signs of downturn inbusiness conditions, but at the start of the fiscal year, we
determined that profit decline would be temporary, and we
maintained shareholder returns (dividends) at the same level
as the previous term.

With a series of large-scale construction work on hand, suchas redevelopment in front of Shibuya station, completed, we
achieved significant profits beyond our expectations, resulting
in earnings close to the record-highs achieved in FY03/19.



Orders received fell sharply due to intensifying competition
amid a gradual deterioration in the business environment inaddition to postponements in some large-scale construction
work.


‫ ڰ‬Current Status (FY03/21 Outlook)
Start of the fiscal year

Due to the unpredictable nature of the impact of COVID-19, we postponed the disclosure of full-year outlook when wereported FY03/20 results, and put out annual projections net of the impact of COVID-19 at our FY03/20 results briefing.

Profits were expected to decline significantly more than at the beginning of FY03/20 due to a sharp drop in
construction work on hand at the beginning of the fiscal year resulting from a serious of completions on large-scaleconstruction works such as redevelopment in front of Shibuya station in the previous fiscal year and a large drop inorders.

The outlook for orders is expected to increase significantly, including large-scale construction projects and large-scale
logistics warehouse projects held over from the previous fiscal year.

May

NovemberAugustQ2 results (most recent)Q1 results

Release of full-year outlook anticipating
impact of COVID-19



Earnings expected to worsen more than
expected at beginning of the term as sales
outlook is expected to decline due to delays inordering and partial cancellations



Dividend reduced year-on-year (from ¥30 to¥10, payout ratio of 20%) in light of
uncertainty about the future amid COVID-19
outbreak

We released a downward revision to our full-year outlook.

Earnings are expected to worsen due to increased costs ofoverseas ODA projects, loss of prospects for additional
acquisition due to delay in completion of government office work,and slower than expected progress on profit improvement onhand work.

In spite of only 37% progress toward the full-year outlook fororders, we plan to obtain orders in fields such as large distribution
warehouses where inquiries are relatively strong, and wetherefore maintain the outlook form the beginning of the term andwill work to achieve earnings recovery from FY03/22.

Although uncertainties due to COVID-19 remain, in the process of
formulating our long-term management plan, we confirmed theabsence of decline beyond our most recent downward revisionannouncement, and while maintaining our year-end dividend
amount, we will also implement a stock buyback of up to ¥1 billion. Mindset for Formulation of Vision‫ ڰ‬Basic
2030 and Long-Term Management Plan

Aiming to maximize corporate value both financially and non-financially by establishing the “Tokyu Construction
Brand” as a unique position within the industry by assembling a strategy centered on delivering three values: (1)decarbonization, (2) zero waste, and (3) disaster prevention and mitigation, with "human resources" and "digitaltechnology" as the source of competitive advantage•

We implement scenario planning with a strong awareness of growing uncertainty from the present into the future.

•

Although we do not anticipate a significant decline in the domestic construction market in the short to medium term,competition is sure to intensify given the unpredictable nature of the future outlook.

•

Earnings recovery in FY03/22 onward may not be V-shaped, but we will practice future-oriented sustainable
management.

•

In terms of Our Ideals for 2026, we aim to reinvent our mindset in response to major environmental changes, and, inline with our basic mindset, we will assemble business strategies and financial and capital policies for businessrecovery in our long-term management plan to be announced in May 2021.

Supplemental information on financial and capital policies
1. Pursuing optimal capital structure that takes into account business risks as well
• Since the restructuring and revitalization of our company after the bursting of Japan’s asset bubble economy, we have beenworking to enhance our equity capital with the issue of sound financial structure.
• The construction industry is a one-time revenue business that is susceptible to economic fluctuation, and it will remain important
to enhance equity capital based on growth strategies in consideration of future investment and business risks.
• In our long-term management plan, while remaining mindful of the cost of capital, we will pursue optimal balance between debt
and capital and enhance shareholder returns in order to continuously improve corporate value based on our growth strategy.
2. Maximizing ROIC spreads and equity spreads premised on pursuit optimal capital structure• We aim to maximize spreads with capital efficiency (ROIC, ROE, etc.) exceeding our cost of capital as KPIs.
• We will establish "financial and capital policies (including shareholder return policies)" that are mutually consistent with "mediumto long-term performance targets (growth potential).“

Our latest stock buyback will be carried out based on our stock’s undervalued price as well as the shift in mindset described above.

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