© TOKYU FUDOSAN HOLDINGS CORPORATION

2© TOKYU FUDOSAN HOLDINGS CORPORATION3

｜ The Group Philosophy ｜Create value for the future
Our ideal vision

We resolve social issues through our business activities and aim for sustainable society
and growth together with our stakeholders.
We realize a future where everyone can be themselves and shine vigorously throughthe creation of a variety of appealing lifestyles.

Our pledge to society

We believe that corporate value is the sum total of thelevels of satisfaction of all of our stakeholders.
Customers▶︎ Always coming face-to-face with customers, we will provide value that will ensure that we
continue to be chosen by them.

Group employees▶ We develop human capital who can tackle challenges and create workstyle environments
where Group employees can work actively.

Business partners▶ We will create value in partnerships and aim to achieve growth together with our partners.

Local communities▶ We will contribute to a sustainable society by initiatives to coexist with communities andrevitalize them.

Shareholders and investors ▶ We will maximize shareholder value through sustainable growth.
Future society▶ We aspire to pass on to future generations a world full of hope with a rich environment.

"Challenge-oriented DNA"Our founding spirit

A progressive spirit inherited since the development of Den-en Chofu, a pioneering effort to create the ideal town

© TOKYU FUDOSAN HOLDINGS CORPORATION

4

｜ The value creation we aim to achieve ｜Leveraging the Group's strengths, we will work to create a future where everyone can be themselves and shine vigorously.

Realizing a future where everyone can be themselves and shine
vigorously through the creation of a variety of attractive lifestyles

Individuals

Create a variety of lifestyles.

A state in which individuals can be healthyboth physically and mentally and can enjoy
their own way of living and thinking

Society

Secure, safe andcomfortable life
infrastructure

Mutual aid community
ecosystem

Decarbonized society

Recycling-oriented
society

Create well-being
communities and lifestyles.

A state in which innovations can emerge andpossibilities and connections can be felt

Environment

Create a sustainable
environment.

A state in which human society coexists inharmony with the planet and can develop
sustainably

Create value in the digital era.
© TOKYU FUDOSAN HOLDINGS CORPORATION

5

｜ Themes of our efforts to create value ( Materialities) ｜To realize our ideal vision, we will work on six themes extracted from social issues we focus on.

Create a variety of lifestyles.

Create well-being communities and lifestyles.

We will realize a vibrant life both physically and mentally by promoting
the Lifestyle Creation 3.0 that combines home, work and leisure styles.

We will realize a society where everyone can feel happy by building asecure, safe and comfortable life infrastructure and creating mutual
aid communities.

Create a sustainable environment.

Create value in the digital era.

As an environmentally advanced company, we will create a carbon-freesociety and a recycle-oriented society by addressing global issues suchas climate change.

We will work on our business model transformation by utilizing digitaltechnologies to create customer’s new experience value.

Create an organizational climate underwhich diverse human capital is enlivened.

Create governance to accelerate growth

We will continue to create innovation by addressing an organizational
climate that respects human rights and under which diverse humancapital can exercise their abilities.

As a group trusted by all stakeholders, we will aim to enhance ourcorporate value sustainably by increasing management transparency
and fairness.

© TOKYU FUDOSAN HOLDINGS CORPORATION6

｜ INDEX ｜OVERVIEW

Positioning of GROUP VISION 2030
Overview of GROUP VISION 2030

89POLICY

Outline of Long-Term Management Policy
11
The Group Policy：Environmental Management
12
The Group Policy ：DX
13
Business Policy ：Evolution of Associated Assets Expansion Model 14

STRATEGY

Our Vision of the World in 2030
Four Key Strategies
1. Producing of attractive city development
2. Strengthening of environment-related business3. Achieving a Digital Transformation of BtoC Business4. Creating of business in new domains

16
17
18
20
21
22

BUSINESSFOUNDATION

Human capital and organizational climate
Governance
Financial Capital Strategy
Business Portfolio Management

24
25
26
27

GOAL

Target Indicators for Fiscal 2030

29

SEGMENT

Business Segments

30

APPENDIX

References37※ Tokyu Fudosan Holdings Group consists of Tokyu Fudosan Holdings Corporation and six core operating companies; TOKYU LAND CORPORATION, TOKYU COMMUNITY CORP.,
Tokyu Livable, Inc., TOKYU HANDS, INC., Tokyu Housing Lease Corporation, and NATIONAL STUDENTS INFORMATION CENTER Co., Ltd..
© TOKYU FUDOSAN HOLDINGS CORPORATION

7

｜ Positioning of GROUP VISION 2030 ｜Based on our recognition of existing issues, we will achieve sustainable growth by working to restructureand strengthen our business toward FY2030.

Create value for the future

GROUP VISION 2030

Value Frontier 2020

Long-term management policy

Medium and long-term
management plan

2014-2020
Medium-Term
Management Plan
2014-2016

Realization of asustainable
society2021-2030
Medium-Term
Management Plan
2017-2020

Restructuring phase

Resilience phase

Recognition of existing issues

Phase 1

Phase 2

• Increase efficiency through BS management• Build a solid business portfolio• Shift away from labor-intensive operations• Break away from a self-supporting approach anddevelop human capital• Improve the earning power andefficiency of After Coronavirus inorder to achieve renewed growth• Expand business operations in new andexisting domains• Build a solid business foundation© TOKYU FUDOSAN HOLDINGS CORPORATION8

｜ Overview of GROUP VISION 2030 ｜We will promote the long-term management policy formulated based on materialities to realize our Ideal vision© TOKYU FUDOSAN HOLDINGS CORPORATION

9POLICY
The Group policy and business policy

｜ Outline of Long-Term Management Policy ｜We will aim to enhance shareholder value and corporate value by building a solid anddistinctive business portfolio toward FY 2030

Based on the recognition of existing issues, we will review all businesses
from a long-term perspective and achieve a sustainable growthby clarifying our approach as a management compass
The Group policy

Business policy

Make the Group's characteristics its strengths

Evolve the associated assets expansion model

Environmental
management

DX

Utilization of
intellectual assets

Co-creation withpartners

Attempts at environmental
advancement

Creating newexperience value

Monetizing know-how
and data

Breaking away froma self-supporting approach

Building a solid and distinctive business portfolio

Enhancing shareholder value and corporate value
ROE improvement

EPS growth© TOKYU FUDOSAN HOLDINGS CORPORATION

11

｜ The Group Policy：Environmental Management ｜Based on our environmental vision, we will work to realize a decarbonized, recycling -oriented society, andto create lifestyles that contribute to the environment［ Decarbonized society and recycling-oriented society ］

Reduction of environmental impact through all our businesses (dissemination of clean energy, etc.)［ Lifestyles ］

Creation of comfortable communities and lifestyles that contribute to the environment
Targets related to climate change
The Group2025

Carbon minus
The Group 's CO2 emissions <Volume of contribution to reduction by creating renewable energy, etc.>

The Group + Supply chain

2030

Achievement of SBT 1.5℃ Target
CO2 emissions reduction by 46.2%

Environmental vision ※ and initiatives
to tackle environmental issues

2050

Zero Emissions
Net zero CO2 emissions

Endorsement of international initiatives

Climate change：Reducing CO2 emissions, utilizing renewable energy,
internal carbon pricing (ICP)
Biodiversity conservation：Green buildings, forest conservation
Water use：Reducing water usage

Pollution and resources：waste reduction and waste plastics
Supply chain：sustainable procurement※ Basic policy formulated in 1998

© TOKYU FUDOSAN HOLDINGS CORPORATION

12

｜ The Group Policy：DX ｜We will work to transform a business with digital technology and to create new value
through the utilization of the Group’s intellectual assets［ CX ］［ Business process ］

A shift to creative workby promoting labor-saving［ Innovation ］

Impressive experiencecreation throughthe advancementof customer contact points

New value creation by
utilizing intellectual assets

CX：Customer Experience

Visualization and digitalization of
workflows within the Group
Business process automation andlaborsaving with technologies

Integration of online and offline(promotion OMO)
Precise understanding of customers
through effective utilization of data

Providing proprietary development
tools and service models
Diversifying revenues by building
co-creation models

Mechanisms to accelerate DX
Building strategic
IT infrastructure

Developing and securing
human capital

Co-creation through CVC

Internal venture scheme

Collaboration withtech companies

Organizational culture
and work-style reforms© TOKYU FUDOSAN HOLDINGS CORPORATION

13

｜ Business Policy：Evolution of Associated Assets Expansion Model ｜We will drive the evolution of our expansion of associated assets model by leveraging intellectual assets
and co-creating with external partners.

External
partner

External
partner

The Group
Expansion of associated profits

New revenue opportunities

Existing business policies

Strengthening business policies

Know-how and data
Expansion of
acquisition andassociated assets utilization cycle

Company assets
REIT and fund assets
Customer assets

External
partner

Utilization of
intellectual assets

Know-how and data regarding
development, operation, real estate agency,
property management and operation.

Maximize business value through external collaboration in knowledge and funds, etc.

External
partnerBusiness policy to be strengthened

Co-creation with partners© TOKYU FUDOSAN HOLDINGS CORPORATION

14STRATEGY
Key strategies

｜ Our Vision of the World in 2030 ｜We will promote strategies adapted to the coming era that we conceive as the Group by identifying changes in individuals,
society and the environment
Perception of the business environment• Diversity of lifestyles and workstyles

Changes inindividuals• Changes in values such as possession andplace

Toward an era in which the meaning ofgoing to real places will be questioned• Continued rise in health and environmental
awareness

Toward an era in which contribution to
the environment becomes a corporate value• Integration of online and offline

Changes insociety• Changes in the concept of cities andregional communities• Diversity & Inclusion

Toward an era of personalized customer service

Changes in theenvironment• Climate change and the escalation ofnatural disasters• Accelerated trend toward decarbonization• Emergence of the impact of world
population growth

Toward an era of co-creation
through borderless society© TOKYU FUDOSAN HOLDINGS CORPORATION16

｜ Four Key Strategies ｜Realize business transformation and sustainable growth with four key strategies based on the perception of thebusiness environment and materialities.
Perception of the businessenvironment
Toward an era in which themeaning of going to real places
will be questioned

Key strategies

1. Producing of attractive city development• Provision of lifestyles and experiences that integrate city operating
systems and contents• Increase in the value of the greater Shibuya area through appealing by
creating an attractive urban center

Toward an era in which contribution

2. Strengthening of environment-related businessto the environment becomes• Expansion of the renewable energy business• People- and environmentally friendly urban developmenta corporate value

Materialities of particular focus

3. Digital transformation of BtoC businessToward an era of(customer-oriented experience value creation)

personalized customer service• Evolution of services utilizing abundant contacts with customers(promotion of OMO)• Expansion of the source of earnings by providing our know-how to the outside

4. Creation of business in new domains
Toward an era of co-creation
through borderless society• Promotion of business focusing on changes in social issues andthe social structure• Business construction by combining resources inside and outside the Group© TOKYU FUDOSAN HOLDINGS CORPORATION17

｜ 1. Producing of attractive city development ｜We will build a city OS and combine it with a variety of contents to promote comfortable
and lively urban development
Existing business initiatives
Content and services

Area management /ecosystem creation• Venture co-creation facilities• Acceleration programs• Entertainment and schools• Health promotion offices and communities

Mechanisms for creating
bustle and activity
Application to future
development properties

Diverse content

Enhancement of asset andarea value

Play
City operating system• Utilization of data on pedestrian flow andcongestion

Lifestyle Creation 3.0
Live(Integration lifestyle scenes)Work

Monetization of
non-assets
Provision of smart city solutions• Demonstrative testing of the latest technologies• Water bus and other mobility sector initiatives

Safe, secure and comfortable city OS© TOKYU FUDOSAN HOLDINGS CORPORATION18

｜ 1. the Greater Shibuya area concept_ P r o d u c i n g o f a t t r a c t i v e c i t y d e v e l o p m e n t ｜We will work to enhance the Greater Shibuya area value with many of our associated assets are accumulated throughhighly attractive urban development
Local
residents
Local government

Greater SHIBUYAThe Group

Companies/
organizations• Driving projects through co-creation with various partners• Place branding and infrastructure / business base development

Utilize area diversity• Multi-functional combined urban development• Content integration (entertainment, art, etc.)

Enhance the value of theGreater Shibuya area

Create innovation• Creating mechanisms for fostering new growthcompanies
Developing hubs for open communication of
information

Ideas for lively environments
Shibuya Sakuragaoka
Block Redevelopment Plan

Tokyu Plaza Shibuya
CÉ LA VI Tokyo

Plug and Play Shibuya
powered by
Tokyu Land Corporation

Increase area convenience• Development of digital infrastructure, etc.
• Demonstrative testing relating to smart cities, etc.

Safe, secure and comfortable city OS

Neutral Innovation Base,enterprise support facility

Increase disaster prevention /environmental responsiveness• Enhancing disaster resilience• Reducing environmental burden and improving
energy management© TOKYU FUDOSAN HOLDINGS CORPORATION19

｜ 2. Strengthening of environment-related busines ｜We aim to achieve urban development that coexists and harmonizes with nature through businessactivities such as achieving widespread use of clean energy.

Expansion of the renewable energy businessLong-term stable power supply initiatives
Expanding power
generation sources

Utilization ofrenewable energy

Building co-creation
relationships anddeveloping systems• Enter new power generation projects such as
offshore wind power• Expand non-FIT businesses

People- and environmentally-friendly
urban development• Develop environmental real estate (ZEH / ZEB) and utilize wood forbuilding materials• Green Work Style: reducing stress and increasing productivity using
greenery• Roll out greening technologies with a focus on social issues• offering fun and activity focusing on parks as an urban infrastructure• Expand the electric power retail business domain• Promote local generation and consumption ofelectric power (building micro-grids, etc.)• Policy recommendations[industry association REASP]• Community coexistence [FOURE concept]

ReENE Zenibako wind power plantTokyo Community
Technology Training Center NOTIA

Sustainable architecture lead project(wood-construction lead project)
Dogenzaka 1-chome project (tentative name)

Kiba Park multi-purpose utilization
project KIBACO

Tsuruma Park facility operation under thedesignated management scheme© TOKYU FUDOSAN HOLDINGS CORPORATION20

｜ 3. Digital transformation of BtoC business ｜We will transform each business in the BtoC domain into an intellectual
asset-intensive business by leveraging our abundant contacts with customers, know-how, and data

Evolve services utilizing extensive
contacts with customers

Expand revenue sources by providing
our know-how to outside parties

Partnercompany

Our service
Our know-how

Customers

The Group

Partnercompany

Revenue / data
Revenue / data
Partnercompany

Creation of customer-oriented experiencevalue through integration of online and offline-Promotion of OMO• Providing customer-oriented services based on digital technologies• System sales and consulting, etc. for partner companies• Proposing solutions based on accumulated data and know-how• Realizing mutual growth models by returning know-how from accumulated data

Example：Selective-type property management products catering toproperty management union finance

Example ：Operation support system for hotels and Japanese-style inns
Tokyu Hands “Plugs Market”

Investment property online trading platform
Construction work proposals based on management property data
© TOKYU FUDOSAN HOLDINGS CORPORATION21

｜ 4. Creating of business in new domains ｜We will develop new business areas based on social issues and changes in social structure.
Provide solutions for assets such asuniversities and hospitals

Hospitals
and schools
Provide solutions to local
communities and areas by
Smart city solutions
leveraging insights gained
through projects such as
TOKYO PORTCITY TAKESHIBA

Healthcare data

Community andregional
revitalization

Provide healthcare solutions tocompanies and local governments,
etc.

Resource depletion

Food and water(agriculture, etc.)

Industrial facilities
Invest in new industry domains
with a focus on industry
changes (e.g., data centers)

Health and healthcare

Technologicalinnovation andsophisticatedinfrastructure

Collaborate utilizing
development opportunities ininfrastructure business, etc.

Next-generation
power generationand transmission
Highly efficient next-generation power
generation and transmission (e.g. hydrogen),communications domain© TOKYU FUDOSAN HOLDINGS CORPORATION

22

MANAGEMENT FOUNDATION
Strengthening of the management base｜ Human capital and organizational climate ｜Foster an innovative organizational climate with a sense of unity by inheriting the founding spirit of“Challenge-oriented DNA”.
Society
The Group
Inheritance of “Challenge-oriented DNA”
• Creating a climate that accepts diverse values• Ensuring psychological safety

Enhancing corporate value startingfrom solving social issues

The
Group

Employees(human capital)
Employees

Penetration of the Group vision
Sense of social mission• Sharing the direction, we should take

• An attitude of constantly improving yourself andachieving personal growth• Fostering a sense of unity including a sense of
belonging and pride

Providing diverse work styles• Developing systems that enables work styles tobe chosen• Continuing to enhance IT infrastructure, etc.

• Returning your growth to the Group and the society.

Fostering an
Innovative
organizational climate
with a sense of unity

Exercising business design capabilities• Discovering issues that capture changes incustomers and society, and build a solution
mechanism

Partnership and co-creation awareness• Active exchanges and collaboration withinside and outside the Group• Value creation utilizing outside resources© TOKYU FUDOSAN HOLDINGS CORPORATION24

｜ Governance ｜We will build a fair and highly transparent governance system as a corporate group that creates value for the future

Progress in strengthening corporate governanceValue Frontier 2020
Medium- and long-term management plan

GROUP VISION 2030
Long-term Management Policy

Medium-Term Management Plan
2014-2016

Medium-Term Management Plan
2017-2020• Elected the first Outside Director (11%*)• Introduced a stock-based compensation system
for Directors and delegated Operating Officers• Developed independence standards forindependent Outside Directors.
（applied also to Audit & Supervisory
Board Members）• Increased the number of Outside
Directors to three (22%*)• Established the Nomination andCompensation Advisory Committee• Elected the first female Outside Director• Increased the number of OutsideDirector to four
(31%*)• Established the Corporate Governance Guidelines• Introduced a third-party evaluation ofeffectiveness of the Board of Directors• Disclosed the Directors' skills matrix• Began evaluating the effectiveness of the• Evaluated remuneration for officers that considers
Board of Directors
their initiatives for ESGs

Continuously improving ourgovernance system tocontribute to sustainablegrowth• The ratio of independent Outside Directors exceeds
・
one third (40%*).
・・*Ratio of independent Outside Directors© TOKYU FUDOSAN HOLDINGS CORPORATION25

｜ Financial Capital Strategy ｜We will aim to enhance shareholder value and corporate value by realizing efficiency -conscious profit
growth under an optimum financial capital structure.
Asset Control

Liability and Equity Control

E f f i ci en t Improve me n t of E xi sti n g Bu si n e sse s(RO A an d Prof i t Margi n )Fi n an ci al Di sci pl i n e Mai n te n an ce① Asset-utilizing business• Lot / cyclical reinvesting and expanding high -efficiency
business operations• Operating large-scale projects• Utilizing external capital and expansion of fee income• Replacing asset portfolio, sale of low-profit assets• Building a financial base that can withstand a downturn inmarket conditions• improving our rating position for the purpose of smoothfund procurement• Improving debt-to-equity (D/E) ratio by building up periodic
profits② Human capital-utilizing business• Improving scale growth and efficiency (shifting away fromlabor-intensive operations)

Sh are h ol de r Re tu rn s Pol i cy
• Achieving EPS growth through reinvestment in growth

B u si n e ss Portf ol i o Man age me n t
Immediate policy• Improving efficiency through portfolio optimization• Maximizing business value through mergers and acquisitions(M&A) and alliances, etc.

Enhance shareholder value
and corporate value

Dividend payout ratio 30% or more,
continuation and maintenance of stabledividend payment

ROE improve me nt

E PS g row th

Achieve ROE 8% target by mid-2020s© TOKYU FUDOSAN HOLDINGS CORPORATION26

｜ Business Portfolio Management ｜We will improve profitability and efficiency by managing our business portfolio based on common
evaluation criteria for all businesses.

Businesses subject
to evaluation

Evaluation indicators

Evaluated on a segmented
business unit basis

Quantitative evaluation
ROIC
Operating profit margin
ROA
Operating profit• Office business• Commercial Facilities business• Residential Sales business• Overseas Business (by country)• Real Estate Agents business• Senior Housing business• Golf business• Tokyu Hands business
・

・
・

×
Qualitative evaluation
Market growth potential
Competitiveness
Synergy
Social impact
Environmental impact(TCFD, etc.)

Implement

Revise and implement

Fundamentally restructure

M&A
Alliances

Withdrawals(sale, liquidation, etc.)• Comprehensive judgment based on the quantitative andqualitative evaluations common to all businesses• Evaluation, monitoring, review and allocation decision management

Improvement ofProfitability and efficiency• Utilization of external capital to maximize business value© TOKYU FUDOSAN HOLDINGS CORPORATION

27

GOAL
Target Indicators for FY 2030

｜ Target Indicators for FY2030 ｜We will aim to achieve target indicators that integrate financial and non -financial data
based on materialities.

© TOKYU FUDOSAN HOLDINGS CORPORATION

29

SEGMENT
Business Segments

｜ Business Segments ｜We will manage our segments by classifying them into business areas with high affinity for social roles
from the perspective of human capital and asset utilization

Utilize our strengths as a total developer in areas such as redevelopment and

Urban Development

joint / complex development to contribute to creating appealing lifestyles inthe era of digital technology and individuality.

Asset-utilizing
business

Contribute to the development of next-generation social infrastructure throughStrategic Investment

the provision of clean energy and logistics services and create diverse
investment opportunities through the application of our real estate investment
management know-how, both in Japan and overseas.

Human capital-utilizing
business

Property Management& Operation

Provide safety, security and hospitality to satisfy each and every customer
while working to maximize real estate usage value by leveraging ouroperational know how.

Play a role in offering lifestyles focused around housing and contribute to theReal Estate Agentsdevelopment of a sound stock utilization society, through the provision of allmanner of solutions relating to the utilization of real estate stock.

© TOKYU FUDOSAN HOLDINGS CORPORATION31

｜ 1. Urban Development ｜We will work to create lively urban communities and enhance joint / complex developmentsthat contribute to solving local issues

Strengthening of redevelopment and joint / complex development• Multi-functional joint urban development projects that fuse lifestyle scenes through Group collaboration• Contribution to solving local community issues in cooperation with residents and government

Beyond the Lifestyle Creation 3.0

Contribution to resolving local issues
Create bustle and forming communities• Contributing to area revitalization• Encouraging interactions between new and existing residents
Contributing to disaster preparedness and reducing disaster damage• Alleviating the issue of densely packed wooden housing in communities• Developing locations in readiness for times of disaster

Shibuya Sakuragaoka BlockType 1 urban
redevelopment project

Shirokane 1-Chome West Central BlockType 1 urban
redevelopment project
Development fees
AM/PM fees

Promotion of co-creation developments through collaboration with partners• Utilize diverse development know-how to enhance and engage in more cocreation developments with institutional investors

The Group

Investors
Investment
returns

Know-how• Increase revenue efficiency by earning investment returns and fee income
Development project© TOKYU FUDOSAN HOLDINGS CORPORATION32

｜ 1. Urban Development (main projects) ｜We will conduct large-scale projects in central Tokyo areas and major regional cities, with a primary focus on
the Greater Shibuya area.
Greater Shibuya area

2021

Jingumae 6-chome
Block Urban Redevelopment
Shibuya Sakuragaoka
Block Redevelopment

2025
Opening FY2023

2030
Jingumae 6-chome
Block Urban Redevelopment

Opening FY2023

Daikanyamacho Project

Opening FY2023

Redevelopment project A
Redevelopment project B
Next Shibuya Sakuragaoka
Block Redevelopment
Other
Central Tokyo areas

Kudanminami 1-chome Project

Scheduled for completion
in FY2022

Kudanminami 1-chome Project

Higashigotanda 2-chome Block 3
Redevelopment ※Redevelopment project C ※Redevelopment project D ※Shirokane 1-Chome West Central
Block Redevelopment ※Redevelopment project E

Major regional cities

Nakano Station New North Exit
Block Redevelopment ※Tokyo Institute of Technology
Tamachi Campus Redevelopment
Osaka West Shinsaibashi
2-chome Plan
Sapporo Susukino Station
Front Joint / complex Development

Scheduled for completion
in FY2022

Osaka Chayamachi Redevelopment※Projects in which the Group is participating, with a primary focus
on condominiums sale projects

Chayamachi Redevelopment
Information listed is based on current plans and assumptions and is therefore subject to change.

© TOKYU FUDOSAN HOLDINGS CORPORATION33

｜ 2. Strategic Investment ｜We will accelerate business development by leveraging our strengths considering changes in energy policy
and industrial structure

Expansion of infrastructure and industry business• Drive high value-added development through development and project management capabilities and collaboration with external partners• Promote of complex base development centered on logistics and renewable energy

Infrastructure and industry business joint / complex location developments
Logistics facilities

Renewable energy

New assets

×Development of high-performance logistics
facilities (low environmental impact
refrigeration, automation etc.)• Research center• Agriculture, etc.

Local generation and consumption ofelectric power driven by new regional
electric power sources

LOGI’Q Hirakata

Expansion of overseas investment business• Continued investment and expansion of associated assets toward business expansion• Creating business opportunities by utilizing Group know-how such as property management and asset management

Mega Kuningan Project(Indonesia)© TOKYU FUDOSAN HOLDINGS CORPORATION34

｜ 3. Property Management & Operation ｜We will shift from labor-intensive to intellectual asset-intensive businesses
by improving productivity and developing high-value-added services based on data

Evolution of Property Management business into a solution delivery model• Advance digitalization of business processes and shift to high value-added operations• Improve convenience through touch-point optimization (e.g. utilizing Lifetime Portal)• Propose solutions to match the needs of property management unions and building owners

Building a new Wellness business model• Actualize smart operations and pursuit improvements in customer experience• Diversify revenue sources through activities such as consulting and franchise development• Provide healthcare solutions to companies, etc.

Offering new value leveraging the Tokyu Hands brand• Create new in-store value by leveraging brand power (e.g. Plugs Market franchise expand)• Develop unique Tokyu Hands’ PB products (shifting to SPA type products)• Strengthen digital relationships with customers (e.g. Watote customer-participation productdevelopment platform)© TOKYU FUDOSAN HOLDINGS CORPORATION35

｜ 4. Real Estate Agents ｜We will transform our business model and expand new revenue opportunities through automation andlabor-saving initiatives, and by utilizing intellectual assets

Evolution of the real-estate agents business model in anticipation of changes in the value of information• Enhance human capital and organizational strength by building digital infrastructure
Convenience and safety of transactions

AI utilization / automation and labor-saving

Systematization of know-how

Refining experience value with OMO

Improving business efficiency
Making time for customer service

Improving consulting andpresentation skills of sales personnel• Create new business models through strategic utilization of acquired data
Examples of future business model transformation utilizing digital infrastructure• Create business opportunities by leveraging digital technologies in investment real estate property transactions• Generate associated revenue using digital customer touch points and data
• Collaborate with small and medium-sized real estate agencies, providing IT solutions, etc.

Expanding scale and efficiency of leased housing service business• Improve productivity through digitization of contracted property management and other business processes• Improve convenience for owners and tenants by digitalizing services and procedures• Expand school-related and career support business services utilizing touch points with students and schools

Campus Village Shiinamachi© TOKYU FUDOSAN HOLDINGS CORPORATION

36

APPENDIX
References

｜ Review of Medium-Term Management Plan 2017-2020 ｜We achieved certain results n terms of business activities and management basewhile our FY2020 targets were not achieved due to the impact of COVID -19
Business activities

Operating profit（100 million yen）

• Expanded leased business base through completion and operation of
Shibuya redevelopment, Takeshiba, and other large-scale projects• Achieved growth of infrastructure industry business, including
renewable energy and logistics facilities

1,000
900
800

• Achieved growth of non-asset-type businesses in real estate agentsbusiness and property management business, etc.

Net profit

700

688
614

732

ROE（%）

D/E ratio (times)

Medium-Term Management
Plan 2017-2020
802
793
775

400

200,000 public housing management units , 1st ranked in Japan)

14.0

6.6

7.1

7.3

7.7

7.3

200

• Achieved the highest net profit record from FY2019 and strengthened
financial base through public offering.

100

12.0
Over 8.0%

6.0

3.7
2.7

2.8

2.6

2.6

2.6

2.3

2.3

2.5

2.3 or
below

237

252

287

315

352

375

386

217

500

2013

2014

2015

2016

2017

2018

2019

2020

2020

0

• Enhanced governance structure by introducing a share-based
remuneration system and increasing the number of outside directors

10.0
8.0

6.7

300

Management base

16.0

565

600

7.5

20.0
18.0

633

500

(FY2018, retail transaction volume exceeded 1 trillion yen,

950

4.0
2.0
0.0

Medium-termManagement
Plan target

Recognition of existing issues• Bloated BS, while revenue levels decline due to the impact of COVID-19
pandemic• Increase efficiency through BS management• Rebuild low-profit businesses• Shift away from labor-intensive operations• Personnel shortages in the Property Management & Operation business andincreasingly apparent the impact of COVID-19• Break away from a self-supporting approach anddevelop human capital• Build a solid business portfolio• Respond to the sophistication and complexity of business due todigitalization. , etc.
© TOKYU FUDOSAN HOLDINGS CORPORATION38

｜ Main Opportunities and Risks for Each Theme ｜We have identified main opportunities and risks for each theme to address.

Themes to work on (Materialities)

Create a variety of lifestyles.

Create well-being
communities and lifestyles.

Create the sustainable
environment.

Create value inthe digital era.

Create an organizational
climate under which diverse
human capital is enlivened.

Create governance toaccelerate growth

Main opportunities• Diversification of work styles, home styles and play styles

Main risks• Mismatch to consumer needs• Fusion of all manner of lifestyle scenes• Degraded efficiency accompanying responding tosegmentalized needs• Increasing importance of community creation• Subordination in competition between cities• Growing needs for disaster preparedness and disasterdamage reduction• Declining attractiveness of city due to community
decline• Increasing awareness regarding mental and physical healthissues• Decreasing value due to insufficient asset
maintenance and management• Growing needs to respond to the decarbonized and recyclingoriented society• Escalation of climate change and natural disasters• Expanding procurement of funds from ESG investors• Increasing importance of utilizing customer contact points• Improving the scalability of services provided• Increasing opportunities to secure diverse human capital• Emergence of innovation due to diversification• Strengthening relationships with stakeholders by improving
transparency• Expanding procurement of funds from ESG investors• Increasing costs due to environmental restrictions, etc.

• Declining position of real experiences due toenhancement of virtual• Appearance of disruptors to existing businesses• Intensifying competition and increasing costs in thehuman capital market• Declining reputation due to the occurrence of humanrights issues• Increasing cost of fundraising• Decline in confidence due to legal violations© TOKYU FUDOSAN HOLDINGS CORPORATION39

｜ Concept of Carbon Minus ｜We will aim to achieve carbon minus for the Group by FY2025, by ensuring that the amount of contribution to
reducing CO2 emissions through renewable energy power generation, etc., exceed our own CO 2 emissions

FY2020

FY2025
Reduce emissions throughthe Group use of renewableenergy power generation, etc.

Expand the amount of reduction contribution bysurplus and forest conservation other than theGroup use of renewable energy power generation

Approx. 290,000
t -CO2

Approx. 160,000
t -CO2＋

Group emissions Volume of
Emissions - contribution
contribution(Scope 1 & 2)
to reduction
Renewable energy power
generation (ownership/
equity ratio conversion)＋
forest conservation
carbon credits

Group emissions(Scope 1 & 2)

Volume ofcontribution
to reduction−
Carbon Minus
FY2025© TOKYU FUDOSAN HOLDINGS CORPORATION40

｜ Reorganization of Business Segments ｜We have reorganized our previous seven business segments into four business segments.

© TOKYU FUDOSAN HOLDINGS CORPORATION41

｜ Glossary of terms ｜

P.3

VUCA

VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity. It refers to an unpredictable socioeconomic
environment.

P.6

Lifestyle Creation 3.0

The creation of ideal lifestyles for customers through the fusion of work styles, home styles and play styles.
Lifestyle Creation 1.0 consisted of simply developing assets for specific applications, while Lifestyle Creation 2.0 referred
to proposing solutions utilizing those assets.

P.6

Wellbeing

Wellbeing means being in good physical, mental, and social condition. The term is often used by individuals andorganizations to mean "happiness," but the Group aims to achieve its realization in the field of Liveable city.

P.12

SBT

Science Based Targets. Targets for reducing company greenhouse gas emissions 5–15 years into the future. The targets
were established by the Paris Agreement in 2015, with the goal of limiting global temperature increase to well below+2℃ above pre-industrial levels.

P.12

RE100

Renewable Energy 100%. An international collaborative initiative, in which companies from around the world participate
with the goal of procuring 100% of the electric power consumed by their business activities from renewable energy
sources.

P.12

ICP

Internal Carbon Pricing. A system for estimating carbon prices internally within companies and facilitating low-carbon
investments and measures. Advantages of introducing the system include raising awareness by making CO2 emissions
readily visible within the company and keeping track of risks in the event of the introduction of the carbon pricing.

P.12

TCFD

Task Force on Climate-related Financial Disclosures. The Task Force on Climate-Related Financial Disclosures wasestablished by the Financial Stability Board , with the aim of supporting companies that disclose information on climate
risks and opportunities and stabilizing financial markets through a smooth transition to a low-carbon society.

P.13

OMO

Online Merges (with) Offline. A state in which online and offline spaces, which were previously separated, merge into
one. OMO requires the provision of a highly consistent and seamless customer experience that eliminates barriers
between online and offline spaces.

P.13

CVC

Corporate Venture Capital. The Tokyu Fudosan Holdings Open Innovation Program was established in 2017 to facilitate
open innovation with venture companies. Moving forward, we aim to create new value through co-creation with external
partners based on functions such as investment, business alliances and hands-on support through the program.

P.18

Acceleration programs

Programs whereby major corporations recruit existing start-up companies for collaboration and investment, in order toaccelerate their growth. In 2017, Tokyu Land Corporation established Plug and Play Shibuya powered by Tokyu Land
Corporation and has since participated in the program.

© TOKYU FUDOSAN HOLDINGS CORPORATION42

｜ Glossary of terms ｜P.18

City OS

City Operation System. A platform for local governments, companies and research institutes, etc., to collaborate withcities and their users for the purpose of accumulating and utilizing data. The purpose is to improve operational andmanagement efficiency by utilizing data, and to drive city / urban development innovation.

P.20

FIT

Feed-in Tariff. A fixed-price purchase scheme for renewable energy. The scheme was launched in 2012 and obligates
electric power companies to purchase electric power generated using renewable energy at a fixed, nationally specified
price, for a certain period of time.

Micro-grid

A network that aims to achieve local generation and consumption of electric power by establishing power sources andconsumption facilities in a community of a certain scale.
One advantage is that electric power consumers and power generation facilities are in close proximity, reducing power
loss.

P.20

REASP

Renewable Energy Association for Sustainable Power supply. As of March 2021, 70 companies and organizations
involved in the renewable energy business have participated in the association. Tokyu Land Corporation is one of thefounding members. The association aims to ensure the long-term stability of the renewable energy business, and a clean
supply of power for the future.

P.20

FOURE

Reciprocal and Regional Revitalization with Renewable Energy. A framework in which renewable energy business
operators, including Tokyu Land Corporation, support and aim to develop together with the areas in which their power
plants are located.

P.20

ZEH / ZEB

(Net) Zero Energy House / (Net) Zero Energy Building. Buildings with net zero or negative annual primary energy
consumption. The amount of reduction is found by summing the amount of energy saving and the amount of energy
creation, in comparison with conventional buildings.

P.20

Green Work Style

A project created out of the philosophy of Tokyu Land Corporation, which supports working people in Japan through thepower of greenery, which promotes mental and physical health and improves creativity and teamwork, based on
consideration of scientific evidence.

P.21

Plugs Market

Since 2020, Tokyu Hands has collaborated with department stores and local governments in rural and suburban areas to
identify local needs from the perspective of revitalizing local communities and spread them from those localities to wider
areas.

P.35

Life Time Portal

A portal site for residents of condominiums and other residences managed by Tokyu Community. It enables users tocheck details of resident services such as cleaning and remodeling, and to read notifications from property managementcompanies and unions, etc.

P.20

© TOKYU FUDOSAN HOLDINGS CORPORATION

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