1

2

3

Editorial Policy

Covered in this report
Tokyu Fudosan Holdings Corporation and Group companies

Non-financial

DX Report

Environmental
Management Report

To be issued in
November 2023

To be issued in
November 2023

Sustainability website
Company overview(website)

Integrated
ReportFinancial Highlights
Presentation Materials

Corporate Governance Report

Annual Report

Dates covered
April 1, 2022 to March 31, 2023 (including some information from April 2023 and later)
Released
August 2023

Administrative office and cooperative departments
Group Sustainability Promotion Department / Group Corporate Planning Department /Corporate Communication Department / Group General Administration Department /Group Human Resources Department / Group Digital Transformation Promotion
Department / other departments at each Group company

Note on forward-looking statements
The forecasts and other forward-looking statements in this report are based on
currently available information and certain assumptions determined as rational.
Consequently, the statements herein do not constitute assurance regarding
actual results by the Company. Actual performance may significantly differ fromthese forecasts due to various factors in the future.

Financial
Summary

Tokyu Fudosan Holdings Corporationcompany website

Financial

Exhaustive type

Reporting target

Information disclosure framework

Selective type

The Group aims to realize a future where everyone can be themselves
and shine vigorously under “WE ARE GREEN,” the slogan for achieving
our long-term vision. Therefore, since last year, we have released
the “WE ARE GREEN” report with the aim of providing all of our
stakeholders, including shareholders and investors, with easy-tounderstand information about how the Group addresses social issues
through its businesses to achieve sustainable growth and improve its
corporate value. The report covers our value creation story, long-term
management policy, and medium-term management plan. It also
explains both our financial and non-financial initiatives in areas suchas human capital strategy and corporate governance, interspersedwith case studies and messages from our employees. The International
Integrated Reporting Framework advocated by the IFRS Foundation(formerly the Value Reporting Foundation), and the Guidance for Integrated
Corporate Disclosure and Company-Investor Dialogues for Collaborative
Value Creation published by Japan’s Ministry of Economy, Trade andIndustry, and other resources were consulted in the creation of this report.

4

The Group Philosophy
We aspire to create value for the future to realize a sustainable society and growth, based on a Group Philosophy
comprising our ideal vision, our pledge to society, and our founding spirit.

Our ideal vision

Create value for the future
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 through the creation of a variety of appealing lifestyles.

Our pledge to society

We believe that corporate value is the sum total of the levelsof 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.

Local communities
We will contribute to a sustainable society by initiatives to coexist with
communities and revitalize them.

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

Shareholders and investors
We will maximize shareholder value through sustainable growth.

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

Our founding spirit

Future society
We aspire to pass on to future generations a world full of hopewith a rich environment.

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

Eiichi Shibusawa

Noboru Goto

1840–1931
Established the Den-en Toshi Company, the originof the Group

1916–1989
First president of Tokyu Land Corporation

Eiichi Shibusawa is often referred to as the father of Japanese
capitalism for his role in building the foundation for the Japanese
economy. He was active from the Meiji era (1868–1912) into
the early Showa period (1926–1989). He was involved in theestablishment and development of around 500 companies andaround 600 public works projects, and made great efforts insupport of philanthropic activities.

Noboru Goto led the Tokyu Group as the first president of Tokyu
Land Corporation. He engaged in large-scale urban development
and resort development projects, as well as serving as chairman of
the Japan Chamber of Commerce and Industry (JCCI).

Provided by: Tokyu Corporation

5

Contents

01

03

02

Group Overview

6

Our Ideal Vision

14

A History of Value Creation

7

Business Overview

8

The Group’s Strengths in Numbers

9

Process for Value Creation•Create Value for the Future•Value Provided to Stakeholders

15
15
16

Value to Be Created—Lifestyle Creation 3.0

10Letter to Our Stakeholders(Message from the President)

17

Special Feature:
Community Development in
the Greater Shibuya Area

11

04

Strategy by
Business Segment

05

51

Value Creation
Foundation

60

Urban Development

52

61

Strategic Investment

54

Themes of Our Efforts to Create Value(Materialities)

Property Management & Operation

56

Overview of Sustainable Management

62

Financial and Non-Financial KPI Targets
and Results

63

Real Estate Agents

58

Medium- to Long-term
Growth Strategy

24Long-term Management Policy

25

Medium-term Management Plan 2025

26

Financial Capital Strategy(Message from the Officer in Charge)

27

Management Strategy Promotion
and Progress(Message from the Officer in Charge)

31

Group Policy—Environmental Management•Policy Summary•Earnings Growth Drivers•Accelerating Renewable Energy
Business Expansion•Special Feature:
The Future of the Renewable
Energy Business

33
33
34
35

Group Policy—DX•Policy Summary•DX Initiatives•Special Feature:
Creating “Bridge Persons” to Drive DX

37
37
38
39

Business Policy•Policy Summary•Case Study:
Realizing Smart Cities
Advancing Building Preservation andRegenerative Architecture

40
40
41
41
43

Human Capital and Organizational Climate•Human Capital Management(Message from the Officer in Charge)

45
45Outside Director Discussion

47

36

Communication With Stakeholders

64

Data

Environment•Promoting Environmental Management•Addressing Climate Change

65
65
67

Financial and Non-Financial Highlights

92

Financial and Non-Financial Data

94

Society•Contributing to Local Communities•Human Capital and Organizational Climate•Respect for Human Rights

70
70
72
76

Business Areas

96

Socially and Environmentally
Friendly Assets

98

Governance•Corporate Governance•Risk Management•Officers

78
78
85
87

Support for International Initiatives /External Evaluations

100

Holdings Structure

101

Corporate Overview / Stock Information

102

01

6

Group Overview
A history of growth and taking on challenges

Four factors for our next-generation community development

History
A History ofValue Creation

Accomplishments
Business Overview

Strengths
The Group’s
Strengths in Numbers

VisionValue to Be CreatedSpecial Feature

Community Development in the Greater Shibuya Area
See p. 11

7Group Overview

A History of Value Creation

A Group with History

FY2022 operating revenue

We have a history of addressing social issues and needs as theychange with the times by advancing Group co-creation in pursuitof new value through our real estate business.

¥1,005.8 billion

Major theme from 1953 to the 1960s

Major theme up to the 1980s

Major theme up to the 2000s

Major theme up to the present

Eliminating housing shortages

Improving quality of life

Diversifying lifestyles

Creating a sustainable society

Tokyu Skyline (condominiums)

Asumigaoka New Town (housing estate)

Setagaya Business Square (office building)

Shibuya Fukuras (office and commercial complex)

During the period of rapid economic growth that followed Japan's
post-war recovery, the problem of housing shortages in urban
areas became apparent. The Group supplied residential properties
and commercial facilities, primarily in its base area of Shibuya, andpursued the creation of value through real estate business.

As living standards continued to rise, people's values also began todiversify. The Group started working to diversify its operations—expanding into property management and real estate agency
operations, retail and resort development—and grew into a
corporate group providing total lifestyle services.

After the collapse of Japan's economic bubble, the Group shifted its
focus from the long-term development of suburban housing to theleasing of offices, commercial facilities and other properties. We also
improved our finances and strengthened our revenue base.

In order to respond to global climate change and thedigitalization of society, we are pursuing even greater value
creation through urban development that is both
economically and environmentally sustainable.

Business development that addresses social issues

Our Origin: Den-en Chofu Urban Development

Realizing Lifestyle Creation 3.0

Den-en Toshi Company wasestablished in 1918 by Eiichi
Shibusawa and others. The
company developed the Den-en
Chofu district as a residential areain Tamagawadai, incorporating
the British-originated garden city
concept to offer the advantagesof both natural and urban
environments.

From buildings to solutions, and combination of lifestyle scenes.
We are evolving our efforts to create value in a way that is
conscious of social issues to realize Lifestyle Creation 3.0, whichbrings together the three areas of living, work, and play. We
combine environmental management and digital transformation(DX) to propose new value that is more unique than ever before.

Lifestyle Creation 1.0

Lifestyle Creation 2.0

Lifestyle Creation 3.0

Developing businesses
from buildings

Proposing solutions
using buildings

Combining every
aspect of life

Commercial facilities
HotelsGolf courses
Ski resorts

Proposals forplay styles

Proposals foplay styles

Condominiums
Detached houses

Office buildings

Proposalsforhome styles

Proposalsforwork styles

Proposalsforhome styles

Proposalsforwork styles

Lifestyle creation2013 Establishment of Tokyu Fudosan Holdings Corporation

Changes in operating revenue* and establishment of major companies

2014 Establishment of Tokyu Housing Lease Corporation
2016 National Students Information Center Co., Ltd.
made into a consolidated subsidiary1970 Establishment of Tokyu Community Corp.

1953

1960

2022 Divestment of Tokyu Hands Inc.

1972 Establishment of Area Service Co., Ltd. (now Tokyu Livable, Inc.)

1953 Establishment of Tokyu Land Corporation

1976 Establishment of Tokyu Hands Inc.

1970

1980

1990

2000

2010

2020

* Fiscal 1953 to fiscal 1992: non-consolidated operating revenue from Tokyu Land Corporation. Fiscal 1993 to fiscal 2012: consolidated operating revenue from Tokyu Land Corporation. From fiscal 2013 onward: consolidated operating revenue from Tokyu Fudosan Holdings Corporation.
Fiscal 1989 was only a 6-month fiscal term, as the fiscal term was changed from September to March that year.

8Group Overview

Business Overview

A Group with Accomplishments

We possess the expertise and resources required for future-oriented urban development acrossa wide variety of businesses, from real estate development to building management andoperation, real estate agent operations, infrastructure building, and real estate investment.
Eliminations

Urban Development

See p. 52

In the Urban Development segment, we develop andoperate office buildings, commercial facilities, andother facilities, while also developing condominiums
and rental housing (rental condominiums and student
residences). Our focus is on
redevelopment projects anddeveloping complexes, taking
advantage of our extensive
experience as a comprehensive
developer. We provide value interms of a comfortable urban lifeand safe and secure housing
through our business with theaim of creating attractive
communities and lifestyles.

Property Management& Operation

See p. 56

In the Property Management & Operation segment, we
operate a wide range of customer-oriented businesses,
including a property management business that helps
maintain and improve asset values, and a wellness
business that helps promote good health and create
enriched lifestyles. We provide value in terms of acomfortable urban life, safe and secure housing, mental
and physical health, andfulfilling leisure timethrough our business whileworking to maximize thevalue of customers’ assets
and facilities.

-¥19.1 billion

Real Estate Agents¥263.0 billion

Urban
Development

FY2022¥346.1 billion

Operating revenue¥1,005.8 billion
Property Management& Operation

Strategic
Investment¥337.1 billion¥78.8 billion

Eliminations-¥9.4 billion

Real Estate Agents¥33.7 billion

Shibuya Solasta

Niseko Tokyu Grand HIRAFU

Property Management& Operation¥12.3 billion

FY2022

Operating profit

Urban
Development¥110.4 billion¥58.6 billion

Strategic Investment

Strategic Investment

See p. 54

In the Strategic Investment segment, we develop andimprove infrastructures supporting lifestyles, such as
renewable energy power generation facilities and logistics
facilities. We also create diverse investment opportunities byapplying our real estate investment management know-how
in Japan and overseas. In our overseas operations, centeredaround the United States and Indonesia, we aredemonstrating our presence as
a comprehensive developer. We
provide value in terms of acomfortable urban life and the
supply of clean energy throughour business with the aim ofbuilding next-generation social
infrastructure.
ReENE Matsumae Wind Power Plant

Real Estate Agents

See p. 58

In the Real Estate Agents segment, we provide
solutions related to the use of real estate stock, such as
real-estate sales agent services and consignment sales,and engage in operations related to rental housing
management. We provide value in terms of acomfortable urban life and safe and secure housing
through our business in order to contribute to thedevelopment of ahealthy society that uses
building stock effectively.

¥15.2 billion

Human capital-utilizing
business¥2,181.1 billion¥630.6 billion(77.6%)(22.4%)

Real Estate Agents¥223.0 billion(7.9%)

Property Management& Operation¥407.6 billion(14.5%)

Strategic Investment¥537.0 billion

Real estate agent business

Asset-utilizing business(19.1%)FY2022

Total assets(excluding eliminations)¥2,811.7 billion

Urban
Development¥1,644.1 billion(58.5%)

9Group Overview

The Group’s Strengths in Numbers

A Group with Strengths are driving us toward sustainable growth.

The Group’s unique strengths are the source of our competitiveness andDiverse assets and customers

A culture that produces unique businesses

Group facilities under operation

Renewable energy business

205

ReENE

Highly specialized personnel and knowhow
Group employees (including temporary employees)

Approx.

30,000See p. 99
As of June 2023

Customers served

18.2 million *1

Approx.

Tenant companies (commercial)

508

1,387

Condominium units under comprehensive management

525,000

Condominium management company (non-consolidated)
Condominium units under comprehensive
management (approx. 502,000)
in Japan(Source: Mansion Kanri Shimbun, May 25, 2023 issue)

Total number of businesses

1,612MW87

No.1

Approx.

1,526,000 t-CO2/year

STEP

30,000

Launched in FY2019
Cumulative proposals received

Commercialized proposals

2533

Corporate Venture Capital

FY2022 Ranking for real estate transactions through agents

No.3 in Japan

Launched in FY2017(Source: Shukan Jutaku, May 29, 2023 issue)

Cumulative investments
etc.

34

Licensed architects(first and second class)Real estate notaries

716

5,648

Licensed condominium
managers

Licensed strata management
consultants

Licensed care workers

IT Passport holders

561

937

1,943

Acquiring external knowledge and sharing
expertise within the GroupWe invite external experts to give self-development seminars.
We also hold seminars led by internal instructors with theaim of encouraging mutual understanding between businesses
and strengthening collaboration within the Group alongsideother events.

Cumulative

111 events held

Total participants

14,728

DX promotion initiatives

Becoming an environmentally advanced company
CDP Climate Change A List Selected in 2022
Selected for 2 consecutive years

12,200

2,375

the Group’s co-creation-based
internal venture scheme

Real estate transactions through agents

Approx.

Employees with certifications

Approx.

Reduction in CO2 emissions

Tenant companies (office)Approx.

Rated Capacity

First Japanese company*2 to completely switch
to renewable energy in 2022 (Tokyu Land Corporation)

Selected as a Digital Transformation Stock(DX stock) 2023

*1. Includes outsourced employee welfare services members, commercial facility cardholders and app members, fitness club members, BRANZ CLUB members, Tokyu Cosmos Members Club members, and Tokyu Harvest Club members*2. According to the list at the end of the RE100 2021 Annual Disclosure Report. Excludes financial institutions

10Group Overview

Value to Be Created—Lifestyle Creation 3.0

A Group with Vision

We are fulfilling customers’ needs through unique proposals that combine home styles,
work styles, and play styles. We aim to realize Lifestyle Creation 3.0 *1
by creating value on both time and spatial axes.

Wide range of business fields (value creation on a spatial axis)

Lifestyle creation (value creation on a time axis)

Creating value in all manner of urban settings on a spatial axis that utilizes
the Group’s value chains

Providing diverse services for each life stage of our customers and creating new lifestyles

Life stage

Schooling
Highereducation

Career

Employment

Marriage

ParentingPost-retirement

Job transfer

LeisureRetirement

Nursing care

Real estate
rental (rent)

Officebuildings

Office buildings

Proposalsforwork styles

Real estate sales(sale proceeds)

Consignment welfare and health support
Career support

Accommodations
for students

Proposalsforhome styles

Urban style
hotelsFacility
operation(charges)

Condominiums

Membershipbased business(sale proceeds)

Building and facility management

Commercial
facilities

Real estate
management(fees)

Condominium management

Ski resorts

New condominiums

Landscaping
and greening(work fees)

Seniorhousingfacility

Rental housing
Real estate agents (sales and leasing)

Golf courses

Real estateagents(commission)

Renovation construction

Senior life

MembershiphotelsDetached
housesCommercial facilities

Proposalsforplay styles

Renovation(construction
fees)

HotelsResorthotelsAccommodations
for students

LeisureFitness
Fitness

Renewable energy

*2

Asset
management(dividends andcommission)
Logistics facilities*1. See Realizing Lifestyle Creation 3.0 on p. 7
*2. In fiscal 2022, 40% of shares were transferred to Renaissance Incorporated. The remaining 60% of shares are scheduled to be transferred on March 31, 2024.

Logistics
facilities

RenewableenergyArea Management Initiatives

Renewableenergybusiness(revenue fromsales of electric
power)

Various services(commission)Yoyogi Park

HARAJUKU Sta.

ie

To ky o Me

tro Ch iyo

V28 Building

iA

ve

Gin

za

Lin

A OYA M A

.

ve.

ri A

ri Av

Meiji

n-do

-do

Ko e

The Iceberg

The Jewels of Aoyamae.

United Nations
University
Ao

SHIBUYA FUKURAS
Tokyu Plaza Shibuya Shibuya
Scramble
Square

Miyam

ge

nza

ka

as

ga w

a-do

ri

ri

CinnamonCommercial facility

Roppo ngi-do ri Ave.

Office building
Hitachinomiya

Properties
by Activia Properties Inc.
Imperialowned
Villa
Joint-investment properties with Norges Bank
Redevelopment
project (led by Tokyu Corporation)
Kokugakuin

Li

NEXT
Shibuya Sakuragaoaka
Block*

Glassarea Aoyama

Redevelopment projectJR

Ta m ado

KonnohHachimangu
ShrineSHIBUYA Sta.

SHINSEN Sta.

SHIBUYASOLASTAa-

Aoyama Gakuin
University

uzaka

SHIBUYASTREAM

.
Ave

m

.

S H I B U YASHIBUYA109

Do

ya

e
Av

Shibuya
HikarieS H OTOSHIBUYA MARK CITY

AoyamaCemeteryne

University*This map shows the center of the Greater Shibuya area.
hi*Tokyu Land Corporation is participating in this project as amember of the redevelopment preparatory association
and as a business collaborator.

os

t
n-e
en ne
u D Liy

Shibuya Sakura Stage

Ol

To k

d

University of
the Sacred Heart

Ya
m
at
e-

HIRO-O Sta.

do
ri

HIROO

Av

Lin

e

e.

oko
To y
yu

-d

or
iA

e.

To k

iji

Av

DA I K A N YA M A

Meri

SugekariParkve.
Ebisu Business Tower

Diverse individuals, organizations, and companies gather in
Shibuya, interacting and working with each other

y

oM

nzo

o
etr

O M OT E S A N D O

Jinnan 1-chome
area*

-do

Trends are communicated to the entire world throughdiverse channels mixing the real and online

or

OMOTESANDO Sta.
Q Plaza
Harajuku

NHK Broadcasting Center

Ya m a t e

Communication
potential

-d

To k

tr

ine
11
nL
mo

Spline Aoyama
Tokyu Building

Yoyogi Park Park-PFI ProjectoueoRa L into k
S h u S h ib u yUnusual talent and ability feed off each other, creating
innovation that is at the forefront of the times

hi

MEIJI-JINGUMAE
Sta.

In July 2021, we formulated Greater SHIBUYA 2.0,
University of Tokyo,
Komaba Campus
Shibuya-styleurban life
a community development strategy for Shibuya
which extends and evolves two visions for the
Work
Play
Flexible
Touchablearea—the “Greater Shibuya” vision of Tokyu
KOMABA-TODAIMAE Sta.
Land Corporation and the “Entertainment
DigitalLive
Switchable
Ke i
o In
o k ashira Line
City SHIBUYA” vision of Tokyu Corporation.
Alongside reinforcing these two visions, Greater
Sustainable
SHIBUYA 2.0 adds additional focus to the element of“live.” By bringing together work, play, and live and engaging in the concepts of
the “digital” and “sustainable” that serve as a foundation for these, Greater
SHIBUYA 2.0 aims to produce synergies and realize a unique “Shibuya-style urbanlife” unlike anywhere else.
o. 3
te N

Value creation
potential

is

Me

a
oH

Tokyu Plaza Harajuku“Harakado”

What is Greater SHIBUYA 2.0?

IKEJIRI-OHASHI Sta.

Tokyu Plaza
Omotesando Harajuku

da Lin e

YOYOGI-KOEN Sta.

Our extensive history, achievements, strengths, and visions are being leveraged in ourlarge-scale, once-in-a-century development centering on Shibuya Station. The Tokyu
Group is promoting community development in a 2.5-kilometer radius of Shibuya
Station, an area we call “Greater Shibuya.” We are enhancing the appeals of Shibuya
in the broader sense of the smooth flow of people and culture. We will be goingeven further—by fiscal 2024, the Group is planning on completing and opening
Shibuya Sakura Stage and three other new projects.

The appeals of the Greater Shibuya area

nn

yo
To k

GAIENMAE Sta.

The Ice Cubes

Ga

Community Development in the Greater Shibuya Area
YOYOGI-UEHARA Sta.

eSpecial Feature

Diversityo Me t ro
T o k y t o s h i n L inu
Fu k

HARAJUKU

Forestgate Daikanyama

To k y o

Metro

Hibiy

a Lin

e

DAIKANYAMA Sta.

EBISU

EBISU Sta.

(As of May 31, 2023)

NAKAMEGURO
NAKA-MEGURO Sta.

Grea t e r S HIB U YAeo Me t ro
T o k y t o s h i n L inu
Fu k

HARAJUKUe

Yoyogi Park

HARAJUKU Sta.

Ga

nn

ie

To ky o Me

V28 Building

ge

nza

a

ga w

a-do

ri

Commercial facility

Roppo ngi-do ri Ave.

Office building
Hitachinomiya

Properties
by Activia Properties Inc.
Imperialowned
Villa
Joint-investment properties with Norges BankNEXT
Shibuya Sakuragaoaka
Block*

JR

Redevelopment
project (led by Tokyu Corporation)
Kokugakuin

LiTa m a.
Ave

Redevelopment project

KonnohHachimangu
ShrineSHIBUYA Sta.

SHIBUYASOLASTAne(Rendering)

University(Rendering)(Rendering)*This map shows the center of the Greater Shibuya area.

hi*Tokyu Land Corporation is participating in this project as amember of the redevelopment preparatory association
and as a business collaborator.

os

t
n-e
en ne
u D Li3

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d
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at
edo

No.
o u te eoRa L into k
S h u S h ib u yOlri

Value chain topics

Av.

G re a te r S HI B UYA

NAKA-MEGURO Sta.

ve

Environment and DX Promotion Section
Environment and DX Promotion Division
Ishikatsu Exterior Inc.

iA

Teppei Kawasakiore.

Tree transplantation

Forests

Lin
oko
To y
yu

-d

Av

Indoor green walls

Parks

To k

ri

Prefab green blocks

Commercial spaces and oﬃces

DAIKANYAMA Sta.

Tokyu Land Corporation and the NTT Group areengaging in community development in the Greater
Shibuya area that balances ultramodern
e
a Lin
Hibiy
convenience with reducedEbisu
environmental
impact.
Business Tower
Metro
To k y oThrough ultrafast, low-latency IOWN service
enabling remote conferencing that feels likemeeting in-person, real-time machine translation,and smart gyms and realistic virtual fitting mirrors in
EBISU
commercial facilities, we are aiming to contribute to
EBISU Sta.
the realization of Shibuya-style urban life.
iji

-do

Residential housing

Local natural sitesee.

Ya m a t e

Increased habitat resources for insects,
birds, and other wild creatures

Imperial Residence.
This ecological network of urban greening, including rooftop greening,is nature
Forestgate Daikanyama
positive and contributes to the recovery of biodiversity in
the Greater Shibuya area. It increases access to foodresources, egg-laying sites, and other habitat resources
and makes possible the life stages of feeding, nesting,and breeding.
NAKAMEGURO

Community development introducing
University of
the Sacred Heart
HIRO-O Sta.
the world’s first IOWN* service
Realizing an environmentally advanced
HIROO
city combining working, living, and playing
Me

The Greater Shibuya area is dotted with a large number of locations
Taking on new challenges through Group collaborationhome to rich nature, including Meiji Jingu, Yoyogi Park, and the
IKEJIRI-OHASHI Sta.
Ishikatsu
Exterior Inc. planted and manages the ecosystem-friendly Omohara Forest, Tokyu
Akasaka Imperial Residence. We are actively promoting urban
DA I K A N YA M A
Sugekari
Plaza Omotesando Harajuku’s rooftop garden.Park
We began conducting an ecological survey
greening in the area. By connecting parks and other green spaces andin 2012 which has proven that the Omohara Forest serves as an ecosystem waypoint in anproviding way-stops for the animals that live there, we are working tocreate an ecological network.
area surrounded by the large green spaces of Meiji Jingu, Yoyogi Park, and the Akasaka

Green walls

AoyamaCemeteryri Aka

SHINSEN Sta.

o k ashira Line

(Rendering)Lin

A OYA M A.

-doasuzakSHIBUYASTREAM

o In

za

ve.

Do

KOMABA-TODAIMAE Sta.
Ke i

Gin

Spline Aoyama
Tokyu Building

S H I B U YASHIBUYA109

Green roofs

ve

y

oM

nzo

o
etr

e.

Miyam

SHIBUYA MARK CITY

Traditional landscaping
techniques

iA

tr

Meiji

ri Av

S H OTO

Komaba Campus

Climbing plant
green walls

or

To k

OMOTESANDO
Tokyu Plaza Harajuku “Harakado”
Shibuya Sakura Stage
YoyogiStd.
Park Park-PFI Project
Yoyogi Park Park-PFI Project(scheduled for completion in November 2023)Q Plaza (scheduled to open in Spring 2024)(operatorship scheduled to start
Harajuku
in February 2025)
NHK Broadcasting
Center an approximately
A new center and source of culture, thisAn integrated development
covering
O MatOTAs Tokyo’s first Park-PFI project, thecommercial facility will be born
the E S A N D O
2.6-hectare plot of land sprawling southwest of Shibuya
Yoyogi Park Park-PFI Project will create a
Jingumae intersection where Omotesando
Station, Shibuya Sakura Stage is a major project for
The
Icebergpark that organicallyconnects
Yoyogi
The Jewelsof Aoyamaand Meiji-dori Avenue cross. In addition tocompleting the urban foundation around the station. In
Park with the Shibuya-Harajuku area.
creating excitement as a new Shibuya
addition to commercial facilities, offices, and residences,
United Nationse.
v
Aimingtobeadiversesetofstageslandmark, Tokyu Plaza Harajuku“Harakado”
there are plans to incorporate international medical
A
University
Cinnamonrido
1-chomeais a redevelopment project that will acreate
safe where people will interact and energize
facilities that meet the needs of internationalJinnan
residents
m
area*
y
Ao
each
other, the development includes
spacesforpedestrians
and
which
will
take
and visitors, serviced apartments, and childcare
supportSHIBUYA FUKURAS
Shibuya
Tokyu Plaza Shibuya Shibuya
relaxing green terraces and plazas forinto consideration
the surrounding
facilities. Further, Shibuya Sakura Stage will be
repleteHikarie
Scramble
Squareenvironment, helping to further increase theexciting events and Glassarea
even skateboardingwith entrepreneurship support facilities to cultivate
AoyamaGakuinto welcome a rich variety of people.
appeal of the Harajuku-OmotesandoAoyama
area.
business ventures in Shibuya.
Universityn-do

Forestgate Daikanyama(scheduled to open in October 2023)
Located near Daikanyama Station, this mixed-use
complex consists of two buildings and presents a
concept for a new style of life. The MAIN Building
was designed by architect Kengo Kuma and offers alifestyle concept of working, living, and playing all
taking place close by. The TENOHA Building iscomprised of a cafe and event space. Focusing on
providing a sustainable lifestyle experience, the
TENOHA Building aims to coordinate with a diverse
array of stakeholders and be a base for activities
that connect the region
and the city.
University of Tokyo,

Creating an ecological networkin the Greater Shibuya area-d2024 andMEIJI-JINGUMAE
beyondSta.

Ko e

Shibuya Fukuras(completed in October 2019)
The upper portion of Shibuya
Fukuras consists of rental offices
and membership-based sharedoffice spaces. The middle section is
occupied by the Tokyu Plaza Shibuya
commercial complex. A tourist
information center and bus terminal
offering excellent airport access areon the first floor, making Shibuya
Fukuras a new gateway to Shibuya
and a hub for urban tourism.

hi

Me

ine
12
nL
mo

Tokyu Plaza Harajuku“Harakado”

2023

Shibuya Solasta(completed in March 2019)
From the entrance to therooftop garden, Shibuya Solasta
links greenery in three
dimensions. A rarity in Shibuya,
this large-scale office building
exudes an abundant, natural
atmosphere even indoors. It
supports working styles that arehighly intellectually productive
through means such as offering
numerous third places.

isTokyu Plaza
Omotesando Harajuku

da Lin e

YOYOGI-KOEN Sta.

YOYOGI-UEHARA Sta.
Community development in the Greater Shibuya
area

2019

tro Ch iyo

GAIENMAE Sta.

The Ice Cubes

yo
To k

a
oH

*Innovative Optical and Wireless Network. This network(device-inclusive) and information-processing infrastructure
aims to optimize the individual with the whole based on avariety of information, leveraging innovative technology
particularly in the area of optics to enable the provision ofhigh-speed, high-capacity communication as well as
tremendous computational resources.

eo Me t ro
T o k y t o s h i n L inu
Fu k

HARAJUKUe

Yoyogi Park

HARAJUKU Sta.

Ga

ie

To ky o Me

YOYOGI-KOEN
Sta.
YOYOGI-UEHARAThe Group’s initiatives to increase the appeals
ofSta.the Greater Shibuya
area

Enhancing diversity

Jinnan 1-chome
area*

ya

Miyam

advertisement shooting at multiple properties.

SHIBUYA MARK CITY

Do

ge

nza

m

a-

do

ri

e
Av

SHIBUYASTREAM

Office building
Hitachinomiya

Properties
by Activia Properties Inc.
Imperialowned
Villa
Joint-investment properties with Norges Bank
Redevelopment
project (led by Tokyu Corporation)
KokugakuinneUniversity
COVER(Bunkitsu/Hiraku)
D of the Greater
FAMiRES*This map showsExperience
the center
Shibuya area.

hi*Tokyu Land Corporation is participating in this project as amember of the redevelopment preparatory association
and as a business collaborator.

os

Curentand future example initiativestn- e Harakado Neighborhood Association • A bold attempten ne
u D Liyto create a new pattern for commercial facilities
that
goes
Shibuya SakuraStagebeyond any such initiative to date. Creators and other members
Kosugiyu Harajuku
TOKYO DESIGN(tentative name)
STUDIO by Lemon Life
Steam Studioof the Harakado Neighborhood Association scheduled to moveinto Tokyu Plaza Harajuku “Harakado” will plan their own
Harakado Neighborhood Association members
events and content and share these with the world.
X& Circle Fund • A venture capital fund co-founded by
Keisuke Honda which invests in entrepreneurs around the world.
Through investment support for celebrity
DA I Kstartups,
A N YAX&MCircleA
Sugekari
Fund strengths are its connections to the entertainment fieldPark
and its ability to reach a wide audience, and we are engaging in
long-term collaboration with the fund through limited
Ebisu Business Tower
partnership investment. By holding events dedicated to thethemes of Shibuya, culture, and technology, we will aim to
attract people involved in startups to Shibuya.
DAIKANYAMA Sta.

University of
the Sacred Heart

Ya

m

at

do

ri

HIROO

Av

Lin

e

e.

To y

oko

-d

yu

iji

iA

e.

or

Av

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ri

ve

.

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Metro

Hibiy

a Lin

Forestgate Daikanyama

Relationship building
Startup co-creation
By incorporating the vitality and growth potential of startups, we will
aim to promote Shibuya’s branding as a district where new industries
and services are constantly being created, increasing the area’s value.
Example initiative • Together with Plug and Play Japan, a world-class innovation
platform, are aiming to create a startup community to stimulate innovative creation.

HIRO-O Sta.

e-

-do

Example initiative • NewMake Labo is a fashion community operated in the
Harajuku-Jingumae area which is taking on the issue of clothing waste with the aim ofrealizing circular fashion.

Ya m a t e

Collaborating with partners in other industries, we will create new,
IKEJIRI-OHASHI Sta.
interactive content for the Greater Shibuya area that is buzzworthy
and which will attract customers.

To k

d

Development of interactive content

3

Glassarea Aoyama

Ol

Creation

The Jewels of Aoyama

Commercial facility

Roppo ngi-do ri Ave.

KonnohHachimangu
ShrineBy building partnerships
and alliances with venture
ve.
NEXT
ri A
a-do
SHIBUYA capital funds andShibuya
Sakuragaoaka
wewill promote theg a wcreators,
Ta m aSOLASTA
Block*
development of new interactive content andCoffee Brew Club
startup co-creation, creating structures to attract
partners in the Greater Shibuya area.

Digital infrastructure buildingNo.
o u te eoRa L into k
S h u S h ib u y

AoyamaCemeteryRedevelopment project

Li

Area management

Spline Aoyama
Tokyu Building

asuz

SHIBUYA Sta.
SHINSENBuildingSta.
partnerships and alliances

noka

EBISU

EBISU Sta.

Area management

In cooperation with a variety of people from the government, the local area, and concernedorganizations, we will hold events in public spaces leveraging whole area coordination unlike anything
NAKAMEGURO
possible inany other city.
NAKA-MEGURO Sta.

Digital infrastructure building

We will expand contacts with customers through the digital and gather, analyze, and utilize the data thus
acquired to improve the navigability of the Greater Shibuya area as well as its ability to attract customers.

G re a te r S HI B UYALinA OYA M A.

CinnamonJR

Relationship buildingza.

S H I B U YA

kaAttraction

Building partnerships
and alliancesKes h i rtonea L igather
Create systems and spaces
the people who drive creationand communication

Attraction

Gin

-do

e.

University of Tokyo,
Komaba Campus

io I

y

oM

nzo

o
etr

ri A

ri Av

Create new industries and cuttingedge technologies and businesses

United Nations
University

Ao
Utilizing XR (VR/AR/MR),
weFUKURAS
will provide entertainment experiences
SHIBUYA
Shibuya
Tokyu Plaza Shibuya Shibuya
merging the digital andreal to enablepeopleHikarie
to experience Shibuya
Scramble
Squareanywhere in the world.
Aoyama Gakuin
University
S H OTO
Future initiative • We will be developing a digital background akasset
business for video andaAttracting diverse people
and companies
KOMABA-TODAIMAE Sta.

ve

MEIJI-JINGUMAESHIBUYA109

Startup co-creation

iA

Meiji

n-do

Digital twinning

Make it possible to experience
Shibuya anywhere in the world

Communicationor

Future initiative • By taking over outdoor advertising at the Jingumae intersection where
Tokyu Plaza Harajuku “Harakado” and Tokyu Plaza Omotesando Harajuku “Omokado” standThe Iceberg
on opposite corners, we will broadcast the latest informationfrom Shibuya to the world.

Digital twinning

Creation

-d

To k

tr

Tokyu Plaza Harajuku“Harakado”

Ko e

Development ofinteractive content
Create experience value foundonly in the Greater Shibuya area

hi

Me

ine
13
nL
mo

ve.

Mediatization of the city
Increase Shibuya’s media presence
and attract attention from aroundthe world

The creation of new
experiences and businesses

isThrough the interlinking of outdoor advertisementsSta.and events tostrengthen Shibuya’s media potential, we will enhance the reach of
OMOTESANDO Std.
Yoyogi Park Park-PFI Project
Shibuya-centeredcommunication
as well as the ability of the area to
Q Plaza
Harajuku
attract
NHKcustomers.
Broadcasting Center
O M OT E S A N D O

Communication that resounds
around the world

Enhancing value
creation potential

V28 Building

Mediatization of the city

Enhancing communication
potential

Tokyu Plaza
Omotesando Harajuku

da Lin e

Communication—Creating a cycle of creation, communication, and attraction—
In order to increase the appeals of the Greater Shibuya
area, the Group is working to create a cycle of creation,communication, and attraction, as well as to develop area
management and build digital infrastructure.

tro Ch iyo

GAIENMAE Sta.

The Ice Cubes

nn

yo
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e

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02

14

Our Ideal Vision
Create value for the future
The value creation we aim to achieve

A future where everyone can be themselves, and shine vigorously
Create a varietyof lifestyles

Individuals
Physically and psychologically healthy
individuals can be themselves andrealize their aspirations.

SocietyInnovative ideas emerge in a society
full of possibilities where people
feel connected.

Environment
Development is sustainable,
enabling human society and theglobal environment to co-exist
and harmonize with each other.

Secure, safe andcomfortable
life infrastructure

An ecosystem ofmutual help in
the community

Decarbonizedsociety

Recycling-basedsociety

Create value in the digital era

Create communities
and lifestyles thatencourage well-being
Create a sustainable
environment

15
Our Ideal Vision

Process for Value Creation

Create Value for the Future
We create unique and original business models by confronting social issues and aim to realize a sustainable society
alongside sustainable growth for the Group by providing diverse value to stakeholders.

A future where everyone
can be themselves,and shine vigorously

Outputs(Value provided through businesses)

Improvements
to quality of life

Lifestyle Creation 3.0

Confronting social issues

A comfortableurban life

Engagement themes(materialities)
Create a variety of lifestyles

Group
policyEnvironmental
management

Create a sustainable
environment

Business
policyCreate governance toaccelerate growthDiverseassetsandcustomers

q
ni
eu
at
Cre

ue

Urban
Development
Strategic
Investment
Property
Management& Operation
Real Estate
AgentsMental andphysical healthCo-creation withpartners

Create an organizational
climate under which
diverse human capitalis enlivened

Achieving the creationof a healthy society

Our threecore strengths

Fulfilling leisure timeHighlyspecialized
personnel
andknowhow

si
an
bu
do
f
eo
rig
ng
ina
a
r
l bu
e
siness mwid
odels in a
Foundation supporting value creation
Human capital andorganizational climate

Urban resilience

Development oflocal economies

A culture that
produces unique businesses

Financial capital

Creation ofcooperative communities

DX

Utilization of
intellectual assets

Create value in thedigital era

Safe andsecure housing

ne
ss
do
ma
ins

Create communities andlifestyles thatencourage well-being

Aim fora sustainable society
and growth

Impacts(Social value)

Governance

Challenge-oriented DNA, our founding spirit

Preservation of the
global environment
Supply of clean energy

Creation of a society
with respect for diversity

16
Our Ideal Vision

Process for Value Creation

Value Provided to Stakeholders
We will enhance the satisfaction of all stakeholders and realize a better future by creating diverse value for customers and society through our business.

Customers

Futuresociety

We will realize enriching and convenient lifestyles
by facilitating the seamless use of a wide rangeof Group services in accordance with the diverse
lifestyles and life stages of individual customers.

Impacts(Social value)Groupemployees

A future where everyone
can be themselves,and shine vigorously

Aim for a sustainable
society and growth

We will cultivate highly productive human resources
who can contribute to wider society by establishingenvironments that enable employees to maintaintheir physical and mental health while working
with motivation and aspirations.

Improvements
to quality of life

Creation ofcooperative communities

Business
partners

We will contribute to the creation of a sustainable
society through our entire supply chain
by supporting the growth of not only Group
companies, but also our partners.

Achieving the creationof a healthy society

Urban resilience

Development oflocal economies

Preservation of
the global environment

Creation of a society
with respect for diversity

Local
communities

We will contribute to regional revitalization andresilient, sustainable urban development throughthe creation of cities and communities that areresistant to disasters and in harmony withthe environment.

Shareholders
and investors

We will establish a position as an attractive
investment destination for investors who
focus on ESG and impact analysis by enhancing
medium- to long-term corporate value.

We will solve social issues
to create a beautiful,abundant environment andurban development that hasenduring appeal, not only
for the next generation,
but for all future generations.

17

Letter to Our Stakeholders

Taking the transformationof the Group to the nextstage for a future where
everyone can be themselves,and shine vigorously

President & CEO,Tokyu Fudosan Holdings Corporation

18

Letter to Our Stakeholders

Our performance in fiscal 2022 andfuture outlook
In fiscal 2022, the first year of our current
medium-term management plan, for the firsttime ever we achieved operating revenueof over ¥1 trillion yen as well as record-highoperating profit in excess of ¥100 billion.
These are gratifying results for a milestone
year marking the 10th anniversary of ourestablishment, but to be honest, for the past
three years we have been working franticallyto bring about a recovery in business results
depressed by the COVID-19 pandemic. It
is also true that the business environment
provided a favorable tailwind in the previous
fiscal year and that the rest of the industry also
did well during this time frame. We are notallowing ourselves to rest on the laurels of thewords “record high,” a phrase that makes a
Operating profit(Billions of yen)

120

110.4

100
80

80.2

83.8

79.3
56.5

60
40
20
0

2018

2019

2020

2021

2022
(FY)

comparison only with one’s own past results,
and have strengthened our resolve to achieve
further advances.
Since I became president in 2020, theGroup has been united in pushing forwardwith its transformation. I believe that inmanagement it is important to have a broad
perspective as well as courage, and during
the pandemic, the Group took the situation
as an opportunity to come together as one,
continuing to promote our transformation
without pause. As a result, the Group’s
restructuring to build a solid and distinctive
business portfolio is set to be completed a year
earlier than anticipated.
See p. 27 )(The purpose of this transformation is the
maximization of the Group’s comprehensive
strength, and from the current fiscal year wehave been working on reforming our value
chain, the veritable core of our transformation
efforts. What we are aiming for is “a future
where everyone can be themselves and shine
vigorously through the creation of a variety
of appealing lifestyles.” In order to make theideals we have touted under our WE ARE
GREEN slogan a reality, we will need to be a
corporate group which continues to create
value. So, how can we realize a sustainable
society and Group growth? I will answer thatquestion by providing specific growth scenariosthat will actualize our ideal vision depicted in
the Group’s long-term vision.

Transitioning from centrifugal
management to loose
centripetal management
Tokyu Fudosan Holdings was established as apure holding company in 2013 to maximize theGroup’s comprehensive strength and promote
the further growth of its individual companies.
Our reasons for this decision at the time wereas follows.

Purposes for the establishmentof Tokyu Fudosan Holdings• Improve management agility and efficiency
through reformation of the Group’s
management foundation• Expand inter-business synergies throughGroup collaboration• Accelerate growth of the Group’sbusinesses through a strengthened
financial foundation
Tokyu Land Corporation, the corecompany of the Group, was born 70 years
ago after the real estate division of Tokyu
Corporation was spun off into an independent
entity. Thereafter, in responding to the needs ofsociety, property management company Tokyu
Community, brokerage firm Tokyu Livable, andretailer Tokyu Hands were established.

By increasing their orders from outside
the Group, Tokyu Community and Tokyu
Livable have each grown to become oneof the largest companies in their respective
industries. Tokyu Hands defined a generation
as a pioneer of the DIY industry and even today
after its transfer outside the Group, it retains
overwhelming brand strength. Our corporategroup, with Tokyu Land Corporation at its
core, has steadily grown through centrifugal(decentralized) management emphasizing
each constituent company’s independence,acquiring distinctly broad business wings.
A side effect of our centrifugal
management, however, is that its focus oncompartmentalized optimization lowered thesense of identification with the Group as awhole, making it difficult for us to create thekind of unique value our Group is capable of.
Conversely, however, excessive centripetal force
from the parent company can lead to member
companies blunting the competitive edges they
have cultivated in the aggressive pursuit ofbusiness outside the Group.
Accordingly, the Group has chosena policy of “loose centripetal (centralized)
management.” As a pure holding company,by aiming for what is optimum for the Group
as a whole over the medium- and long-term
perspective and balancing centralization anddecentralization, we are seeking to promote
the creation of synergies leveraging the strong
competitiveness of each Group company andmaximize the Group’s comprehensive strength.

19Letter to Our Stakeholders

What I’ve implemented
in my three years as president
Since transitioning to a holding company
structure, despite ups and downs in the market,
our Group has continued to grow steadily. We
have expanded business opportunities andconsolidated redundant ventures, including
establishing Tokyu Housing Lease (integrating
our rental housing businesses), purchasing
National Students Information Center(acquiring a new customer base), establishing
Tokyu Re·design (integrating our renovation
businesses), and establishing Tokyu Resorts& Stays (integrating our hotel and resort
operations businesses).
Even so, when I became president in
2020, our goal of maximizing the Group’s
comprehensive strength had still only beenachieved halfway. Further, due to the COVID-19
pandemic, the future of society as a wholebecame extremely uncertain. Feeling an evengreater need for the entire Group to sharea single direction, I commenced working on
formulating our long-term vision.
Under GROUP VISION 2030, which uses
a backcasting approach to envision our future,
we present a 10-year plan to improve bothshareholder and corporate value, positioning
the first five years from fiscal 2021 as a
restructuring phase and the second five years
as a resilience phase. As part of this, based on
the social roles and growth scenarios of eachof our businesses, we reorganized our businesssegments into asset-utilizing and humancapital-utilizing businesses.
Next, we formulated our medium-term
management plan. In this plan, we establisheda concrete growth strategy for the restructuringphase, which aims to improve our earning
power and efficiency to regenerate growthin the post-COVID-19 period. Under the clear
guideline to improve return on equity andearnings per share, we have promoted drastic
business restructuring over the past two years.
Main business restructurings• Transferring shares of Tokyu Hands• Replacing commercial facility assets(sale of Tokyu Plaza Ginza)• Partially transferring assets ofleisure business(four golf courses and one ski resort)• Transferring shares of Tokyu Sports Oasis*(fitness business)

These restructuring efforts, in whichnothing has been considered off-limits, are akinto surgery on the Group, and enabled us toachieve a certain level of progress in fiscal 2022.
As a result, we are expecting ROE to improve to
8.8% in fiscal 2023, from 5.7% in fiscal 2021.
Our post-restructuring portfolio isprimarily comprised of industry-leadingbusinesses, and I believe that utilizing theabundant contacts with customers they
possess is the key to turning the breadth of ourbusiness wings into a true strength.

Strategy 1

Aim for organizational
improvement through value chain
reformation
The next issue we are working on, one thatis essential to realize the maximization of
the Group’s comprehensive strength, isreforming the Group’s value chain. Adding to

my previous surgery metaphor, if the Group
were the body of a person, this could becompared to improving one’s physical condition
through healthy food and exercise habits as afoundation for creating a body that is leaner
and more muscular.
Customer-oriented value creation
leveraging our strengths
The Group’s value chain is, in essence, a cycle.
Businesses are developed from a variety ofangles utilizing the tangible assets of landand buildings to provide services with added
experience value for our customers, and theintellectual assets born of the knowhow anddata we thus accumulate are in turn leveraged
to create further new businesses. Whatenables us to establish this cycle for producing
sustainable growth is a “body” endowed with
the Group’s unique strengths, the sources ofour competitiveness.
Sources of the Group’s competitivenessValue creation leveraging the strengths of our value chain• Diverse, quality assets centered on the
Greater Shibuya area

Externally emergent activities

Co-creation with partners (open innovation)

Customerorientedvalue
creationInternally emergent activities

Procurement

Development

Real estateagencyProperty
management
and operation

Intellectual asset utilization (DX/human capital strategies)* In fiscal 2022, 40% of shares were transferred to Renaissance Incorporated. The remaining 60% of shares are scheduled to be transferred on March 31, 2024.

Abundant
contacts
withcustomers• The diverse customers of our property
management/operation and real estateagency businesses• Knowhow and human capital with advanced
expertise in a broad range of business fields• A corporate culture which perceives social
needs and produces unique businesses

20

Letter to Our Stakeholders

In most industries, it has long been
established that sales are unidirectional,
flowing from the “upstream” of suppliersto the “downstream” of customers. The
information for creating new businesses, aswell, has largely been concentrated upstream.
Today, however, digitalization has enabledamazing advances in the ability to utilize data,and now it is the customers who have themost information and who are the starting
point for services. Our Group develops a broad
range of businesses in the field of real estateand it is important for us to base our thinking
not on the upstream but rather to incorporate
customer needs from direct points of contact
with them such as real estate agents andproperty management and operation. Further,
it is important to leverage this in our businesses,
regardless of whether they are B2C or B2B.
“Dual-axis management” which promotesinternally and externally emergent activities
Our value chain will function through Groupwide, customer-oriented optimizations
implemented by individual employees with
an awareness of the chain of value creation.
Business creation within the Group (internally
emergent) and business creation throughcollaboration with external entities (externally
emergent) will mutually induce each other. At
the same time we will continue to promoteorganic lifestyle and business creation, a system
we dub “dual-axis management.”
We have strengthened collaboration
within the Group for internally emergent
activities to promote the development of new

products and services which tap into latentcustomer needs.
For externally emergent activities, we havealready promoted initiatives such as regional andgovernment partnerships, industry–academic
collaboration, and joint venture creation. Under
our business policy of co-creation with partners
as established in the Group’s long-term vision, we
will be further increasing our efforts to promotevalue creation through open innovation.
Case examples of internally
emergent activities• Coordination between manufacturing,sales, and management divisions on
condominiums• Group collaboration on redevelopment
See p. 71
projects• Internal Group strategy for wealthy
customers
Case examples of externally
emergent activities• Comprehensive business partnership with
JR East• Advance introduction of IOWN to theGreater Shibuya area through partnershipwith the NTT Group• Participation in an industry-academic
collaboration program with the
Massachusetts Institute of Technology• Collaboration agreements with local
municipalities: Matsumae Town, Hokkaido;
Fujimi Town, Nagano Prefecture; andKawajima Town, Saitama Prefecture

In reforming our value chain, our aim
is to reinforce the change in the way of ourthinking from compartmentalized optimization
to optimization of the Group as a whole andin turn maximize the value we provide tocustomers. While balancing internally andexternally emergent activities and utilizing
our downstream abundant contacts withcustomers, we will create a corporate culture
and structure which enables customer-oriented
value creation across our entire value chain.
In our B2C businesses, we will be promoting
lifestyle creation suited to each individual
customers, while in our B2B businesses, we will
be promoting business creation which utilizes
our operational knowhow.
To realize our dual-axis management, one
more business policy will be important—that ofutilizing intellectual assets. Through our humancapital strategies and the promotion of digitaltransformation (DX) utilizing our knowhow
and data, we will maximize the value of ourintangible assets, which in turn will lead torevenue. In order to turn our intangible assets
into intellectual assets, we will be changing theway we view our non-financial assets, instead
looking at them as “unfinanced capital” andpromoting the perception throughout theGroup of such assets as future financial capital.
Both internally and externally emergent
activities share the perspective of “What should
we do so that customers choose us?” In orderto ensure this attitude toward customer needs
takes root in our employees, we constantly
ask them to look at the work that takes placebehind and in front of them, to turn their gazeoutward, and to take their point of view a stephigher. To cultivate human capital that will
engage in their work from a perspective that is
thoroughly on the side of the customer, we will
be linking our human capital strategies, which
contributes to the maximization of the Group’s
value, to our management strategies.

Strategy 2

Increasing inter-municipal
competitiveness with ourcommunity planning knowledge
Our strengthened value chain ties into a growthscenario over the medium and long term ofleveraging the achievements and knowledge
acquired through community development andredevelopment projects to solve a variety ofsocial issues.
In recent years, it has been the prevailing viewthat the social issues that the real estate industry
should concern itself with are the developmentof communities that are comfortable to live in,and the promotion of people’s wellbeing. Today,
however, these are considerations that are a matterof course. The question now is to how competitive
a community can be made in comparison withother municipalities. Increasing the international
municipal competitiveness of Tokyo, in particular,
is something we see as a key issue for stimulating
the Japanese economy.
In response to this challenge, the Tokyu
Group is focusing its efforts on its community
development strategy in Shibuya. Defining thearea within a 2.5 kilometer radius of Shibuya
Station as “Greater Shibuya,” we will be aiming

21

Letter to Our Stakeholders

for a community that leverages both physicaland technological infrastructure to growsustainably and bring together work, play, andliving. By fiscal 2024, the Group will complete
construction of and open four new projects,
expanding its activity base across the entire
area to take our community development of
the Greater Shibuya area to a new stage.
New projects opening in the
Greater Shibuya area
• Forestgate Daikanyama(scheduled to open in October 2023)• Shibuya Sakura Stage(scheduled for completion in November 2023)• Tokyu Plaza Harajuku “Harakado”(scheduled to open in Spring 2024)• Yoyogi Park Park-PFI Project(operatorship scheduled to start in
February 2025)

In this new stage, our keywords are“whole area coordination” and “people,” andwe will be co-creating with a diverse array ofpeople and companies as well as establishingmechanisms to promote interaction andexchange. Through this, we will engage incommunity development that establishes
a cycle of creation, communication, andattraction, and build partnerships and alliances
based on shared ambitions and the diverse
people who are the source of everything thatmakes Shibuya so appealing.
Shibuya is an area which possesses thedivergent characteristics of being a tourism
destination and of being a cultivator of industry,and I believe it exudes a unique personality that is
unlike that of any other city in the world. Throughour community development, we will contributeto what makes Shibuya, an entertainment district
which never sleeps and which is visited by tourists
from around the world, an appealing place. At
the same time, through the proposal of measures
to promote entrepreneurship, we will enhance
Shibuya’s unique capabilities for cultivating industry
and make it an area which attracts outstanding
startups from across Japan and the globe.
Further, by developing specific measuresfor each Group company based on thegrowth scenario which turns this community
development into business capabilities, we will
expand opportunities for business from theGreater Shibuya area outward.
See p. 11 )(Strategy 3

Tackling regional revitalization
through the solving of regional issues
An equally important social issue that Japan
must tackle alongside strengthening ofinter-municipal competitiveness is regional
revitalization. In facing the challenges borne byvarious regional areas, we place emphasis on
tourism and green transformation (GX).
To make Japan, a nation with a declining
population, into a top tourism destination,
it will be essential to attract people fromoverseas, and I believe that building resort
destinations with the ability to draw visitors
Shibuya Sakura Stage

Community development growth scenario

Accumulate knowledge

Obtain business
opportunities

Implement horizontal
development

Promote demonstration testing andenvironmental initiatives in
the Greater Shibuya area

Increase in projectorders from companies andgovernment entities

Promote and monetize
community development invarious areas outside Shibuya(Rendering)year-round across Japan will be one meansof achieving this. Tourist cities such as Kyoto
have made it clear that if a continuing flow of
tourists can be established, the local economy
will experience sustainable growth. As it is,however, many resort communities in Japan
experience huge seasonal differences in thenumber of tourists they receive. Our Groupwill be creating a new model of regional
revitalization—making Japan into a top
international tourist destination through yearround resorts—in Niseko, Hokkaido, where
we are coordinating with the government
and private sector to create the number one
international resort in Asia.

22

Letter to Our Stakeholders

The effects of GX on regional revitalization
are symbolized by the words of the mayorof Matsumae Town, Hokkaido, where theGroup operates a renewable energy business:“Matsumae’s local specialties are Matsumae
pickles and electricity.” A renewable energy
business is an asset which brings an increasein business and employment opportunities aswell as increased tax revenue to a region, andthere are examples from across Japan of projects
which achieved both regional revitalization andenvironmentally oriented activities.
Against this backdrop, the Japanese
government enacted the GX Promotion
Act, which incorporates measures such as
the transition to renewable energy as theprimary source for electric power, in May
of this year. Going forward, the country’s
energy policy will accelerate the trend toward
decarbonization. Our Group led the industry
in engaging in renewable energy businesses,
and with our longer track record in the field of
decarbonization, we will continue to contributeto Japan’s energy policy while giving due
consideration to the environment.
In implementing initiatives to solve
regional issues, we can utilize the Group’s
distinctive characteristics of broad businesswings together with numerous business sites.
With regional community development,
partnerships with local residents, thegovernment, business partners, and a variety
of other stakeholders is essential, and it also
demands the development knowhow toengage in long-term projects while seeking
the cooperation of landowners. New business

opportunities always emerge in places thathave experienced economic revitalization. The
Group will expand the roots of its nationwide
business sites while engaging in the kindof community development regional areas
require, and through this the buds of profit
generation will emerge.

Increasing our earning power
through the two pillars ofenvironmental management and DX
In tackling key issues, environmental
management and DX are two concepts whichhave been established as Group-wide policies.
We view them as essential factors for raising theGroup’s competitiveness and, at the same time, asconcepts which both come into their own when
they are turned into “earning power.”
The Group was quick to develop
environmentally-conscious businesses, andin turn our environmental management
initiatives have preceded those focusing on
DX. Particularly with regard to our renewableenergy business, which we launched in 2014,
we post some of the best results in Japan.
In December 2022, Tokyu Land Corporation
became the first Japanese company* to switch
entirely to renewable energy to power its own
business locations as well as all its facilities,
meeting its RE100 targets. Through this andother efforts such as the decarbonizationof offices, condominiums, and hotels, theentire Group is promoting its branding as anenvironmentally advanced organization.
* Excludes financial institutions

Based on the power of this branding, we
will aim to grow in three phases: Appealing
to customers with our uniqueness, expanding
business opportunities, and turning theseopportunities into revenue. One point in our
medium-term management plan is to increasebusiness opportunities with the environment
as a starting point. An example of an
externally emergent activity in this area is ourcomprehensive business partnership with JR
East. This partnership has been praised as thekind of initiative an environmentally advanced
company engages in, and it is steadily
beginning to bear fruit.
See p. 33 )(Turning to the promotion of DX, we havebeen selected for the DX Stocks 2023 list. In
being selected for this list, we were praisedfor our improvement of customer experience(CX) through the use of a digital twin incondominium sales as an excellent exampleof enhancing an existing business model, andfor our introduction of NFTs into the leisurebusiness as a great example of the creation of a
new business model.
However, in comparison with the DX
policy presented in our long-term management
policy, our efforts in this area have justbegun. As I touched on when discussing
reformation of our value chain, the primaryfunction of data and digital technology is toturn intangible assets into intellectual assets.
In order to realize the Group’s DX vision ofEnvironmental management growth scenario

Appeal to customers with
our uniqueness

Expand business
opportunities

Turn these opportunities
into revenue

Build environmental brandingthat will make us ourcustomers’ first choice

Acquire new business starting
points and opportunities

Monetize environmental
value by shifting it onto prices

Create a foundation

Increase added value

Create businesses

Increase business process
productivity andimprove profitability

Improve CX to increase
revenue of existing businesses

Promote innovationand diversify revenue sources

DX growth scenario

23

Letter to Our Stakeholders“digital fusion—removing all boundaries withthe power of DX,” we will aim to establish a
new revenue model by maximizing the valueof asset-utilizing and human capital-utilizing
businesses.
With regard to our human capitalutilizing businesses, I believe that leveraging
the Group’s intangible assets in the B2B field aswell and providing them externally as industrytailored and function-tailored solutions will leadto new sources of revenue in the future.
( See p. 37 )Becoming a collection of humancapital which creates an unending
stream of value
I have spoken repeatedly of the importanceof intangible assets, but the asset I place
the greatest value on is human capital. The

growth of the Group has been supported by
the strength of employees endowed with our
founding spirt of “challenge-oriented DNA”
and a “mission to engage in society.” Viewing
their knowledge, skill, and ambition as ourhuman capital, we are promoting a strategy ofaggressive human investment to maximize theGroup’s value.
See p. 45 )(Among our various policies, we also
place importance on health and productivity
management. Through measures such as agood working environment, together with
our stakeholders we are contributing to thepromotion of the health of our employees
through our business activities.
Based on years of experience being
involved with personnel, I am convinced thatan environment which secures psychologicalsafety is necessary for the cultivation of highly
diverse human capital. In order to instill thisthinking throughout the Group, changing
the awareness of the management of eachGroup company is particularly important. Thisis also an essential component for realizing
sustainability as a corporate group, and going
forward we will continue to promote humancapital management with our strategies forhuman capital and management as indivisible
from each other.

.In order to continue to go beyond

being trusted to being loved—
Promoting rapid businessdevelopment with enthusiasm
When the three gears of social trends,
management strategy, and enthusiasm engage,
businesses experience dramatic and rapid
growth. This is my personal view of businessin management. And of the three, only
enthusiasm can be controlled by individuals.
Because businesses are comprised of people,
I believe that the state of mind that people
go about their work in is a major component
concerning business success.
This line of thinking was probably
significantly influenced by a boss I had when I
was young who constantly told me, “Do what
you like.” This belief that individual enthusiasm
should be encouraged as long as it benefited
the company and organization permeated theentire Group at that time.
That corporate culture remains
unchanged today. If anything, the enthusiasmof diverse and individual employees is all
the more necessary for the creation of new
businesses in this age of increasingly complex
social issues. I believe that my job is to keep
my gaze fixed on the future one step ahead
and further strengthen a corporate culture

The three components for rapidbusiness development

Enthusiasm

SocialtrendsManagement
strategythat continues to move forward and evolve.
The slogan “WE ARE GREEN” in the Group’s
long-term vision really symbolizes the idea ofall of our human capital exhibiting their diverse
abilities under a sense of Group unity.
Our ideal is the realization of “a future
where everyone can be themselves and shinewith vigor.” With enthusiasm as a starting
point, we formulate management strategies
that accurately grasp social issues, changing
customer needs, and other social trends. By
fully exhibiting this “challenge-oriented DNA”
and continuing to create value that meets
society’s expectations, we will aim to be a
corporate group which continues to go beyond
being trusted to being loved.

03

24

Medium- to Long-term
Growth Strategy
Realizing our vision for advancing
environmental management and DX
Long-term management policy

p. 25

Building a solid and distinctive business portfolio

Group policy

Environmental
management

DX

p. 33

Business policy

Utilization of
intellectual assets

p. 37

p. 40

Co-creation withpartners

Key Strategies 1. Direct attractive city development
2. Strengthen environment-related business3. Digitally transform B2C business4. Create business in new domains
Strengthen our management foundation
Financial
capital strategy

p. 27

Human capital andorganizational climate

p. 45

Restructuring phase2021–2025 Medium-term management plan 2025

Governancep. 78

2026–2030 Resilience phase

p. 26

25
Medium- to Long-term Growth Strategy

Long-term Management Policy

We are building a solid and distinctive business portfolio focused toward fiscal 2030

Engagement themes(Materialities)

Target indicators for fiscal 2030

Long-term management policy

p. 25

Building a solid and distinctive business portfolio

Group policy

Toward an era in which
contribution to theenvironment will bea corporate value

Business policy

Utilization of
intellectual assets

p. 40

Co-creation withpartners

Key Strategies 1. Direct attractive city development
2. Strengthen environment-related business3. Digitally transform B2C business4. Create business in new domains
Strengthen our management foundation
Financial
capital strategy

Human capital andorganizational climate

p. 27

Toward an era ofco-creation throughborderless societies

p. 37

p. 45

Restructuring phase2021–2025 Medium-term management plan 2025

Governancep. 78

2026–2030 Resilience phasep. 26

Community
revitalization
measures

100 or morecases

-46.2%

GHG (CO2)
emissions(versus fiscal 2019)or moreNumber of
initiatives
utilizing digitaltechnology

100 or more

Ratio of childcare
leave taken
by male employees

100%

Improvement ofeffectiveness of
the Board of Directors

100%(third party evaluation)

Financialsoundness

Toward an era of
personalized
customer service

DX

p. 33

90% or more

Operatingprofit¥150 billion

Net profit *3¥75 billion

ROE

10% or more

ROA

5% or more

D/E ratio

2.0 x or less

Efficiency

Toward an era in which
the meaning of goingto real places will
be questioned

Environmental
management

Primary targets for each materiality*1

Heading toward
2030

Customersatisfactionlevel*2

Profit targets

p. 61*1. Detailed targets are stated on p.63.
*2. Tokyu Cosmos Members Club questionnaire*3. Profit attributable to owners of parent

GROUP VISION 2030
Our long-term management policy aims to realize the vision set forthin GROUP VISION 2030 by advancing environmental management
and DX as overall Group policies based on the themes of our efforts
to create value (materialities), as well as promoting the utilization of
intellectual assets and co-creation with partners as business policies
aimed at evolving the associated assets expansion model.

We have also identified the four major changes that we think
will affect the business environment around the Group heading
toward 2030, and have formulated key strategies in response to eachchange. These strategies are to direct attractive city development,
strengthen environment-related business, digitally transform B2C
business, and create business in new domains. We will formulate andimplement specific measures to advance these overall Group policies
and business policies, capture new business opportunities, andfurther strengthen the Group’s competitive position in order to build
a solid and distinctive business portfolio that will raise bothshareholder and corporate value.

26
Medium- to Long-term Growth Strategy

Medium-term Management Plan 2025

Engaging business opportunities and creating business models throughenvironmental management and DX

Medium-term management plan 2025
Improve profitability

Increase profits andexpand business opportunities

through higher productivity andefficient investment

by enhancing experience value for customers

Outline of the medium-term management plan

Asset-utilizing
business

Human capitalutilizing business

Environmental
management

Urban Development /Strategic Investment

Property Management &Operation / Real Estate
AgentsDX

Target direction

Target direction

Assets• Development of uniquefacilities• Community-based
project promotionli sCapacity to produce
businesshmStrengths of our Group

Utilization of
intellectual assets

nt

es

h

e
nu

pa e nt ofvetina ne w ren i oith d inpture e g buos i n e s s o p p r ti n g
n vi
a
t
ronm
en t a s a s

Ex
it
w

• Experience indeveloping diverse
asset types• Industry-leading AUM

odab

Leveraging a broad
range of assets

Human
Capitalel

EstStrengths of our Group

Improved productivity
through a departure fromlabor-intensive methods
and the effective use of
intellectual assetsmIncreased asset efficiency
through efficient investmentof funds and co-creationbased development

Maximize corporate value

Co-creation
with partners

A wealth of customer
touchpoints• Business development
in a variety of B2C areas• Communication
focusing on the physicalHuman capital andoperational expertise• Industry-leading
presence inmanagement andbrokerage2021

by transforming our business model

2022

2025

Restructure our business portfolio
In the restructuring phase of our long-term
management policy, we will focus on thebusinesses that have been positioned within ourbusiness portfolio management as requiring
fundamental restructuring. This will involve
structurally transforming these businesses toimprove earning power and efficiency in a waythat will regenerate growth in the post-COVID-19
period. We made a certain amount of progress onbuilding a solid and distinctive business portfolio
in fiscal 2022, which is one year earlier thaninitially planned.

2023

Efficiency

ROE

9%

EPS

¥ 90 or more

ROA

4%

Profit targets

Operating profit
Net profit*¥120 billion¥65 billion

Aim to maximize the Group’s
comprehensive strength
We have started reforming the Group’s value
chains with the aim of turning the breadth of ourbusiness wings into a true strength andmaximizing the Group’s comprehensive strength.
As we head toward the resilience phase of ourlong-term management policy, we will look toraise profitability through higher productivity andefficient investment, to steadily increase profitsand expand business opportunities by enhancing
experience value for customers, and to accelerate
the creation of distinctive value throughenvironmental management and DX.

Financial soundness

D/E ratio

2.2 x or less

EBITDA multiple

10 x or less

* Profit attributable to owners of parent

27
Medium- to Long-term Growth Strategy

Financial Capital Strategy

Message from the Officer in Charge

Aiming for business restructuring and the growth of each business toimprove our earning power and efficiency
Progress of medium-term management plan (financial targets)
FY2021(Result)

Efficiency

Profittargets

Shinichiro Usugi

Financialsoundness

Director, Operating Officer
In charge of General Management
Supervisor for the Corporate Communication
Department, Group Planning Strategy Department,
and Group Finance Department
Tokyu Fudosan Holdings Corporation

Medium-term management plan progressIn fiscal 2022, we were able to exceed all of our target
indicators thanks to a favorable real estate sales market
as well as the recovery in demand for domestic andinternational tourism with the end of the COVID-19
pandemic. For the first time ever, operating revenue
and operating profit exceeded the ¥1 trillion and ¥100
billion milestones, respectively. In fiscal 2023, we are

FY2022(Result)

FY2023(Forecast)

FY2025(Target)

ROE

5.7%

7.3%

8.8%

9%

ROA

3.2%

4.1%

4.0%

4%

EPS

¥48.84¥67.21¥87.37¥90 or more

Operating profit¥83.8 billion¥110.4 billion¥112.0 billion¥120.0 billion

Net profit*1¥35.1 billion¥48.2 billion¥62.0 billion¥65.0 billion

D/E ratio

2.3x

2.2x

2.3x

2.2x or less

EBITDA multiple

10.7x

9.3x

10.1x

10x or lessAsset-utilizing
business*2
ROA

3.2%

3.5%

3.1%

3.6%

Human capital-utilizing
business*2
Operating profit margin

4.2%

7.7%

8.0%

8.1%

*1. Profit attributable to owners of parent*2. Asset-utilizing business: Urban Development / Strategic Investment
Human capital-utilizing business: Property Management & Operation / Real Estate Agentsplanning on increases in both revenue and profit. This
includes an operating revenue of ¥1.12 trillion(+¥114.2 billion year on year), operating profit of¥112.0 billion (+¥1.6 billion), and profit attributable toowners of parent of ¥62.0 billion (+¥13.8 billion).
Buoyed by a favorable business environment andcentered on condominium sales, the hotel business,the real-estate sales agent business, and sales of assets,

we are ahead of our initial medium-term
management plan projections. The drastic increasein our net profit is the result of an improvement in
extraordinary items with the end of the intensive
business restructuring we conducted throughout thetwo years of fiscal 2021 and 2022. For fiscal 2023,
we are forecasting an ROE of 8.8% and earnings
per share of ¥87.37, approaching our targets of 9%and ¥90 or more, respectively, for fiscal 2025, thefinal year of our medium-term management plan.
We will continue to aim for “improving our earning
power and efficiency,” the theme of our
medium-term management plan, and strive for
growth in earnings per share as well as thecontinued achievement of ROE which exceeds thecost of shareholders’ equity.

28
Medium- to Long-term Growth Strategy

Financial Capital Strategy

Capital allocation
In the current medium-term management plan
extending through fiscal 2025, we are aiming tobalance what is optimum for growthinvestment, financial soundness, and returns toshareholders. From fiscal 2021 to fiscal 2025,
we plan to invest ¥2.2 trillion, of which ¥2.0
trillion will be invested in the asset-utilizing
business segments of urban development andstrategic investment. We will be particularly
strengthening our investments in highly
profitable renewable energy facilities as well as
revolving real estate investment businesses,
which includes logistics facilities and rental
housing. With regard to our expected returns
for our investments in asset-utilizing businesses,
we will be aiming for NOI yields at around 5.0%
for our Group-owned property businesses andIRR around 6.5% for our revolving real estate
investment businesses, and will be investing inmaintaining and improving asset efficiency.
In the past, the Group’s financial structure
was weak, and as a result, we were forced to cut
back on investments during the poor real estatemarkets following the collapse of Japan’s bubble
economy and the 2008 global financial crisis.
Ordinarily, a poor market is exactly the time to be

Capital allocation
Cash inCash out

Operatingcash flow

Investment
cash flow

Financial
cash flow
Interestbearing
debt, etc.

Precondition as of the end of FY2025

Gross investment ¥2.2 trillion
Investment
amount

Notes

Asset-utilizing
businesses¥2.0 trillion

Expected return perspective• Group-owned property businesses:
NOI yields at around 5.0%
• Revolving real estate investment businesses:
IRR around 6.5%

Urban
Development¥1.33 trillion• Office and commercial facilities: ¥620 billion• Residential: ¥710 billion

Strategic
Investment¥670 billion

Renewable energy: ¥240 billion• Logistics, commercial facilities: ¥280 billion• Overseas: ¥150 billion

Classification

Investment
cash flow¥570 billion(net
investment
amount)*2
Operatingcash flow¥470 billion*1

Shareholder
returns*1: Net income + depreciation/amortization expenses*2. Includes inventory investment• Interest-bearing liabilities: ¥1.65 trillion• D/E ratio: 2.2 x or less

Human capitalutilizing businesses¥150 billion

TFHD Corporation¥50 billion

Shareholder Returns Policy

M&As, CVCs, etc.

• Dividend payout ratio: 30% or more
• Continuation of stable dividend payout

investing. In addition, we have experienced anincrease in the number of large-scale andlong-term projects, such as our redevelopment
projects centered on the Greater Shibuya area,and from the perspective of being able topromote our businesses regardless of theeconomic climate, we believe it is of the utmost
importance to maintain and improve our financial
soundness. Accordingly, we plan to gradually
improve our D/E ratio in the medium and longterm through such means as accumulating
periodic profit, with a target of 2.2 times or lower
by the end of fiscal 2025.
In addition, we will steadily promote
investment recovery, including the realization of
unrealized gains through our revolving real estate
investment businesses and asset replacement.
Between fiscal 2021 and 2025, we are planningon a net investment amount in this area of ¥570
billion. The funds will be raised from operating
cash flow and interest-bearing debt. Regarding
interest-bearing debt, we raise such debt with
continued stability and cost reductions aspriorities. We are continuing to diversify oursources and financing methods, and to lengthen
repayment periods and fix interest rates (the ratioof long-term interest-bearing debt at the end of
March 2023 was 95.9%, and the ratio of fixedinterest-bearing debt was 95.3% [both excluding
non-recourse debt]).

29
Medium- to Long-term Growth Strategy

Financial Capital Strategy

Portfolio management progress
When we formulated our medium-term
management plan, we evaluated all of ourbusinesses along the two axes of qualitativeevaluation and quantitative evaluation. Centeringon businesses placed in the category of“fundamentally restructure,” over the past two
years, we focused on revising our business andasset portfolios. In our restructuring efforts toimprove our earning power and efficiency,
nothing has been considered off-limits. For
example, in fiscal 2021, we transferred all sharesof Tokyu Hands, a business which was facing
declining profitability as well as issues with future
growth potential. In addition, in fiscal 2022, wemade the decision to sell Tokyu Plaza Ginza,
whose asset efficiency had declined. By theprevious fiscal year, our initiatives for businesses
requiring fundamental restructuring were nearlycomplete. Going forward, we will be continuing
to promote the restructuring and growth of eachof our businesses with a focus on improving
efficiency and centering on businesses placed in
the category of “revise and advance.”

Initiatives to improve corporate value
and market valuation
Through our intensive business restructuring overthe past two years, we had planned on improving
our ROE from 5.7% in fiscal 2021 to 8.8% in

fiscal 2023. However, the PBR (price-to-book ratio)of our stocks has continued to fall below 1.0 (asof the end of July 2023), and we recognize that
improving our valuation by shareholders andinvestors is an issue.
PBR can be broken down as ROE times PER,
and in order to improve our PBR, we believe it isnecessary to improve both ROE and PER. Looking
at ROE first, in the short and medium term, weare aiming for a target ROE of 9% in our
medium-term management plan. We willcontinuously achieve ROE which exceeds the costof shareholder’s equity through the initiatives
presented in our medium-term management plan.
Specific examples of these initiatives include theProgress in portfolio management

Quantitativeevaluation

Qualitativeevaluation• Operating
profit margin• ROA• ROICetc.

• Marketgrowthpotential• Competitiveness• Environmental
impactetc.

Quantitative evaluation

All projects are assessedby common evaluation indicators

Asset-utilizing business

Human capital-utilizing business

Revise and advance

Advance
Infrastructure and industry
Investment management
Offices

Offices
Residential

Commercial facilities

Real estate brokerage
Rental housing service, etc.
Commercial facilities
Overseas operations

Advance

Property management
Hotels

Revise and advanceFundamentally
restructure

Healthcare
LeisureFundamentally restructure* Quantitative evaluations based on FY2023 results and FY2024 plan; qualitative evaluations based on expectations for the period through to the mid-2020s.

Healthcare
LeisureRevise and advance
Qualitative evaluation

steady promotion of large-scale development
property projects, the strengthening of our highly
profitable renewable energy and logistics facility
businesses, and improving operational efficiency
via digital transformation (DX) and other means.
To improve PER, we recognize that it isimportant to convince shareholders and investors
that we can grow sustainability over the medium
and long term. And in order to achieve sustainablegrowth over the medium and long term, it isimportant that we grasp trends in the world,
resolutely face high-priority social challenges and,through our businesses, work to resolve thosechallenges. The reason why is because when there
are large social challenges, the businesses which
resolve those challenges also grow large. The
greatest challenge society faces at this time is theissue of the environment, and we believe that thetrend toward companies with a greater degree ofenvironmental contribution being customers’ first
choice will grow stronger going forward. As
established in our long-term management policy, we
promote environmental management as the Group
policy, and will be accelerating our expansion ofenvironmentally-oriented business opportunities.
An additional challenge we see before us isproactively engaging in dialogue with shareholders andinvestors to a greater degree than ever before to gain
their understanding of our initiatives, understand inturn shareholder and investor expectations with regard
to the Group as well as where we fall short of those
expectations, and utilize this information in ourmanagement strategies. In order to provide
shareholders and investors with confidence that we areon the path toward future growth, in addition topromoting the initiatives presented in our long-term
management policy and medium-term management

30
Medium- to Long-term Growth Strategy

Financial Capital Strategy

Initiatives to enhance corporate value and market valuation

vision, we have determined a policy for the
long-term issuance of ESG bonds. Having set
targets of increasing the ratio of ESG bonds to
50% by the end of fiscal 2025 and 70% by theend of fiscal 2030, as of the end of fiscal 2022,

Improve corporate value and market valuation by promoting andachieving the long-term management policy and medium-term management plan 2025.

PBR
Improved earning
power and efficiency

ROE

ROE

ROE

PER

FY2021

FY20225.7%

7.3%

FY2023 (Forecast) FY2025 (Target) FY2030 (Reference)
8.8%

9.0%

10% or more

Medium-term management plan initiatives
Asset-utilizing businesses

Human capital-utilizing businesses• Completion and operation of large-scale• Capturing the recovery in tourism demand
development properties• Labor and manpower saving through DX• Strengthening highly profitable businesses
such as renewable energy and logistics facilities

FY2021
Sustainablegrowth overthe medium
to long term

EPS and ROE

Financial capital strategy• Promotion of business portfolio management• Improvement of D/E ratio by increasing
periodic profit

FY2022

FY2023 (Forecast) FY2025 (Target) FY2030 (Reference)

Operating profit¥83.8 billion¥110.4 billion¥112.0 billion¥120.0 billion¥150.0 billion

Profit attributableto owners of parent¥35.1 billion¥48.2 billion¥62.0 billion¥65.0 billion¥75.0 billion

Long-term management policy

PER

Shareholder return
EPS
(Yen)
100
80

×

40
20

Utilization of intellectual assets Monetizing know-how and data
Co-creation with partners Breaking away from a closed, fully in-house approach

(Yen)
30

Financial capital strategy Profit growth with efficiency based on optimal financial capital structure
Human capital and organizational climate Fostering an innovative organizational climate with a sense of unity
Governance Building a fair and highly transparent governance system
Building relationships with shareholders Stable shareholder returns, proactive dialogue and disclosure

20

Shareholder return policy
Our current policy for returning profit toshareholders is to provide a dividend payout ratioof 30% or more and to maintain stable dividend
payments, with particular emphasis on stably
maintaining and improving dividend amounts. We
believe this policy was demonstrated in ourmaintenance of dividend amounts even when our
performance was unfavorable due to the impact

Formulation of the “WE ARE GREEN”
Bond Policy for the long-term issuanceof ESG bonds
Based on GROUP VISION 2030, our long-term

7.1

6.6

7.3

41.61

41.45

47.18

2013

2014

2015

51.77

57.80

7.3
56.84

7.3

6.7

5.7
3.7

53.70

87.37

2017

2018

2019

2020

8
6

67.21

4

48.84

30.13
2016

(%)
10

2
2021

2022

2023
(Forecast)

0(FY)

Dividends and dividend payout ratio

Business policyof the COVID-19 pandemic in fiscal 2020. Goingforward, we will continue to make quality
investments such as the Greater Shibuya area andother redevelopment projects as well as
renewable energy facilities, and aim to expand
earnings per share through growth investment
and increase dividend amounts accordingly.

7.5

8.8

7.7

0

Environmental management Expand business opportunities with the environment as a starting point
DX Establish a new revenue model by maximizing the values of assets and human capitalplan, we will also be enhancing our disclosure anddialogue with regard to these initiatives.

ROE (%)

60

The Group policy

Strengtheningof managementfoundation

our ESG bond ratio was 25%. Going forward, we
will continue to advance and raise awareness of
the Group’s ESG initiatives while also aiming for
growth and the realization of a sustainable society
through the ongoing issuance of ESG bonds.

Dividend* (Year-end)

10.0

12.0
25.4

24.1

28.0

13.0
25.1

14.5

15.5

27.3

25.1

16.0

29.8

16.0

17.0

34.8

23.5
35.0

14.5

6.5
6.5

7.5
7.0

8.0

8.0

5.0
5.0

8.0

4.5
3.5

6.5
5.5

9.0

7.5

8.0

8.0

8.0

9.0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

19.2

0

Dividend payout ratio (%)

53.1

8.0

10

Dividend* (Interim)*Interim dividend for fiscal 2013 was paid by Tokyu Land Corporation

14.0
32.0

14.0
2023
(Forecast)

(%)
60
40
20
0
(FY)

ESG bond ratio
ESG bonds

Non-ESG bonds

(%)
100
80
60
40
20
0

¥200.0 billion
95%¥10.0 billion
5%
2019

Increase in ESG
bond ratio
through
continued issuance¥210.0 billion
75%

50%

¥70.0 billion
25%

50%

2022

2025

30%

70%

2030

(FY)

31
Medium- to Long-term Growth Strategy

Management Strategy Promotion and Progress

Message from the Officer in Charge

Promoting environmental management and DX to create a strong businessmodel that is difficult to imitate

Eiji Yamane
Operating Officer
Supervisor for the Group Corporate
Planning Department,Group Sustainability Promotion Department,
and Group Digital Transformation
Promotion Department
Tokyu Fudosan Holdings Corporation

Materiality promotion progress
As an operating officer of Tokyu Fudosan Holdings
since April 2023, I have been in charge of theGroup’s corporate planning, sustainability
promotion, and digital transformation (DX)promotion. I strive to link management strategies
with management resources and incorporate
diverse ideas and technologies so we can create
new value and enhance and improve both oursustainability and competitive edge.
Our Group pursues an ideal vision to “create
value for the future” and aims to resolve social
issues through business activities, and, together
with our stakeholders, achieve growth as well as asustainable society. In our long-term vision, weestablish non-financial KPIs in line with each of six
materialities determined based on social
challenges, and through concrete measures, we
are working to improve our corporate value.

”Create a variety of lifestyles”“Create communities and lifestyles thatencourage well-being”
Our creation of new products and services as wellas the number of projects which tie into
community planning in line with the new trendsof a post-COVID-19 world are increasing.
In addition to creating facilities such aswellness offices and hotel residences which
demonstrate the significance of their spaces, weplace emphasis on creating mechanisms, like area
management and the local production andconsumption of energy, which connect people
and communities and produce safety and vitality.
Through these, we aim for social value which will
last on into the next generation.

”Create a sustainable environment”“Create value in the digital era”
We are accelerating measures to realize adecarbonized society. At the same time, we arealso aggressively working to upgrade theinfrastructure of the systems needed to reform
our business processes.
In promoting the Group policies ofenvironmental management and DX, what is
important is for each individual employee to beaware that the environment and DX are things that
affect them personally and to incorporate theseconcepts into their work. Through the disclosure ofEnvironmental Management Report and DX Report
as well as awareness campaigns and training,understanding has gradually permeatedthroughout the Group, and the number of
initiatives which have a major impact on society
have increased.
”Create an organizational climate underwhich diverse human capital is enlivened”
As symbolized by our human capitalmanagement, our management and humancapital strategies have become more interlocked.
An organization which is diverse yet united as one
team and which is willing to engage in trial anderror is an organization that is able todemonstrate its true strengths. The cultivation ofhuman capital and the fostering of anorganizational climate require a certain amount oftime, and accordingly, we will be taking deliberate
steps toward both.
”Create governance to accelerate growth”
We recognize the necessity of management that is
cognizant of market valuation and the capital costneeded to improve corporate value. Of the Group’s
many management resources, our human capitaland information capabilities present particularstrengths and potential which are difficult to portraythrough financial statements, and we are creating
systems to further enhance their superiority and inturn increase corporate value.

The growth opportunities presented by theGroup policy of environmental management
Since our establishment our Group has promoted
environmentally-conscious business. From thestart, the recycling of limited resources andbusinesses which coexist with natural capital havebeen specialty fields for us. Examples include
urban development, resort operation, greening
projects, real estate agency for pre-owned homes,
and building renovation and life-extension. We
will be able to meet the major demands of thisage of realizing a decarbonized society, arecycling-based society, and biodiversity
conservation as an environmentally advanced
company because of our foundational desire toseek harmony between business and theenvironment which we have cultivated over theyears. We believe that there are a great many
opportunities for growth through environmental
management at the fringes of our existing
business domains.
We are ahead of schedule in our plans inthis area and expect to achieve the targets of ourmeasures to realize a decarbonized society early.
We have continued to steadily expand
investments in our renewable energy business,
one of the Group’s greatest strengths. In
December 2022, Tokyu Land Corporation
switched entirely to renewable energy to power

32
Medium- to Long-term Growth Strategy

Management Strategy Promotion and Progress

all of its business locations and facilities, meetingits targets for the international RE100 initiative.
See p. 65 )(The original target was 2025, and we see theachievement of this ahead of schedule to be a resultof our capabilities in renewable energy, which areamong the strongest of any company in Japan.
Further, in fiscal 2022 we had reduced our CO2
emissions (Scope 1 and 2) to 50.6% of fiscal 2019
levels. In addition, we have begun introducing
internal carbon pricing (ICP).
Our initiatives for a recycling-based society as
well as biodiversity and nature conservation include
promoting reuse in residential areas, recycling foodfrom our membership resort hotels, rebuilding
existing properties, and creating wooden buildings
using sustainable materials. Our efforts haveattracted greater attention from the public, andgoing forward we will continue to focus efforts on
this field with our own unique spin.
In order to further accelerate such initiatives,in the previous fiscal year, we started a
Sustainable Action Awards program which(Rendering)Forestgate Daikanyama’s TENOHA Building. In collaboration withgovernment authorities and businesses engaging in circular economy
activities, Forestgate Daikanyama will connect consumers withsustainable initiatives as a focal point for activities which tie thecommunity and city together.

recognizes employees who take on the challengeof sustainable initiatives. In the first year alone,
there were 123 submissions. By praising Group
members for their creative and forward-thinking
challenges, we will encourage others within theGroup to do the same and create new business
opportunities in turn.

The growth opportunities presented
by the Group policy of DX
The initial DX measures we are promoting are tofurther strengthen the competitiveness of our corebusinesses. These include the development ofbusiness processes to achieve efficient working
styles utilizing digital technology, and thepromotion of customer experience (CX) which
creates impressive experiences and highly
convenient services based on our real world anddigital contacts with customers. The data thus
accumulated will enable us to know expectedvalues and issues felt by our customers and staff,
and to find optimum measures with a greater
degree of accuracy. In turn, this will be reflected in
our product development and service models,increasing business competitiveness. Further, it willbe transformed into businesses leveraging digitaltechnologies in ways only we are capable of,directly leading to the creation of revenue
opportunities (innovation).
In recognition of our innovative DX
initiatives, the Group was selected for the DX
Stocks 2023 list. We are continuing to take on
new challenges with alacrity regarding key
business strategy matters. In the field of businessprocesses, one example includes our creation of asystem to optimize facility operation andpersonnel distribution. In the field of CX, we haveintroduced a new way to experience residential
spaces using digital twinning and VR. And in thefield of innovation, we have created a new,
cutting-edge service utilizing the technology of
NFTs (non-fungible tokens—digital data using
block chain technology which is impossible tosubstitute or forge).
Promoting DX requires information systeminfrastructure that is highly safe and expandable,
and the cultivation of human capital capable ofconnecting business with digital technology andtaking the lead in project implementation. We
have developed a Zero Trust network and a
training system to develop DX talent and have put
these into full operation from fiscal 2023.

capital and information capabilities, is one of theGroup’s strengths, and there is a need for us tofurther enhance our knowhow and knowledge
and transform these into intellectual assets.
Both types of businesses leveraging theirbreadth, detecting changes in market conditions
early on, and signaling each other will make itpossible to turn change into opportunity. Together
with engaging in the close coordination of
information within the Group, we will keep awatchful eye on financial markets and industry
trends and increase the resiliency of ourmanagement foundation.

Enhancing the resiliency of asset-utilizing
and human capital-utilizing businesses

Both of the Group policies of environmental
management and DX increase the difficulty of imitating
our business model, and we believe they are keys
which will lead us to further growth opportunities inour existing business domains, and additionally serve as
keys to the creation of new business opportunities
through co-creation with new companies andmunicipalities. We lag behind the world in sustainability
transformation (SX) and DX. Going forward, it isextremely likely that the skill with which we handle
these will influence our corporate value. We must
accelerate our preparations for transformation, flexibly
engage with many ideas and technologies, and, at thesame time, continue to apply ourselves to improving inthese areas. By refining our management resources asintellectual assets together with the creation of astrong business model that is both difficult to imitate
and able to survive adversity no matter how market
conditions may change in the future, we will aim to
be a corporate group that continues to becustomers’ first choice.

In order to achieve business stability and growth
as well as the optimum utilization of management
resources, we believe it is necessary to increase
the resiliency of our core businesses against future
uncertainties in line with their innate characteristics
so that we may avoid excessive contractions.
We believe that our asset-utilizing businesses
require a higher level of resiliency and resolve tosurvive the transition to interest rate increases andan inflationary economy. This means they require
revolving investment that is much more aware oftimelines, along with the creation of a highly resilient
framework to survive increasing construction as wellas water, lighting, and heating costs.
We believe our human capital-utilizing
businesses require a more advanced businessmodel predicated on the difficulty of securing
sufficient labor in the future. The depth of ourintangible assets, symbolized by our human

Refining a business model that isdifficult to imitate

33
Medium- to Long-term Growth Strategy

Group Policy—Environmental Management | Policy SummaryGroup policy
Environmental management

DX

Business policy

Expanding business opportunities with the environment as a starting point

Utilization of intellectual assets

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

The Group’s policy on environmental management is tofocus efforts on the three priority issues related to theenvironment that are stated in our medium-term
management plan, namely decarbonized society,recycling-based society, and biodiversity. We plan toleverage our entire value chain to create environmental
value together with stakeholders.
The goal of our environmental management efforts is
to expand business opportunities with the environment as astarting point in order to create earnings throughout thevalue chain. First, we will work to build a distinctive
environmental brand. We will use our advanced initiatives,
including our early achievement of the RE100 goal andadoption of internal carbon pricing, and environmental
flagship projects to build environmental branding powerthat is unique to the Group. We aim to establish a presence
as an environmentally advanced company that consumers
will want to choose.
In this way, we will use the environment as a hook forincreasing participation in joint ventures, strengthen
relationships with other companies and governmentalorganizations, create collaborative projects, and advanceother initiatives that can expand our opportunities. This willlead to businesses that have a considerable social impact bysolving environmental issues and proposing new lifestyles.
Based on this, we will aim to secure returns fromenvironmental investment and initiatives. In addition toproviding customers with facilities and services that offer aunique added environmental value through our value chain,
we will also develop businesses that provide solutions whichleverage the Group’s strengths, such as our renewable energy
business and City OS, by collaborating with private and public
sector partners on regional networks and regional vitalization.
Our environmental management growth scenarios, whichare 1) appeal to customers with our uniqueness, 2) expand
business opportunities, and 3) turn these opportunities into
revenue, will lead to a strong Group business model which
competitors will not be able to imitate.

Human capital and organizational climate

GovernanceValue creation through environmental management
Long-term management policy

Strengths of the Group

Reducing environmental impact
through all of our businesses

Ability to work closely with landowners andcommunities on development and project building

Creation of comfortable communities andlifestyles that contribute to the environment

Environmental value propositions thatappeal to user sensibilities

Group policy for environmental management in the medium-term management plan

Aim to expand business opportunities with the environment as a starting pointby addressing three priority environmental issues
Phase 1

Phase 3

Appeal to customers with
our uniqueness

Turn these opportunities
into revenue• Distinctive environmental
flagship projects• Early achievement of RE100• Group-wide introduction of internal
ReENE Solar Farmcarbon pricing
Higashi-Matsuyama• Comprehensive information
dissemination (strategic public relations activities)• Capture B2C revenue(Rendering)• Convert environmental value into revenue• Appeal to highly environmentally BRANZ Chiyoda-Fujimi, which has acquired
aware customers
ZEH-M Oriented certification. Initiatives(Rendering)Forestgate Daikanyama

include provision of EV charging facilities

Priority issues
Decarbonized society
Recycling-based society

Phase 2

Tokyu Harvest Club’s VIALA Kinugawa Keisui,
which is contributing to the realization ofa recycling-based society

Biodiversity

Expand business
opportunities• Use the environment as a hook forincreasing participation in
joint ventures• Strengthen relationships withgovernmental organizations tobuild an advantageous
business environment• Create business opportunities
in new regions

Large-scale renovations that
contribute to extending theservice life of buildings
Realizing a recyclingbased society throughrenovation(Rendering)

Collaboration with
the NTT Group at
Shibuya Sakura Stage

Comprehensive
business partnershipwith JR East

• Capture B2B and B2G revenue• Form medium- to long-term
collaborations with private andpublic sector partners• Develop businesses thatprovide solutions whichleverage the Group’s strengths,
such as the environment,
renewable energy, and City OS• Strengthen regional networks
and regional vitalization initiatives(Rendering)

Yoyogi Park Park-PFI Project(Rendering)

Regional
revitalizationagreement with
Matsumae,
Hokkaido

Reducing environmental
impact by incorporating
cutting-edge technology
into Shinjuku Station West
Exit Area Development Project34
Medium- to Long-term Growth Strategy

Group Policy—Environmental Management | Earnings Growth Drivers

Group policy
Environmental management

Current status and outlook of the renewable energy business
The renewable energy business is one of the main focuses of our efforts to advance our Group policy for environmental management.
We are aiming to grow the business even further by enhancing profitability and expanding new business opportunities.

The earnings growth potential of electricity sales

Expanding new business opportunities

FY2022 result

1) Expanding business areas anddiversifying business models

FY2025 forecast¥6.5 billion ¥10.0 billion
We launched our renewable energy business in2014 and since then, we have developed
projects, including solar and wind power
generation, across Japan under the ReENE
brand name. As of March 31, 2023, the total
rated capacity of all our projects (before
conversion to equities), including projects underdevelopment, was 1,577 MW (approximately
1.58 GW), surpassing the 1 GW benchmark
required to be recognized internationally as aleading producer of renewable energy.
Currently, sales of the electricity we generate
are focused on Japan’s feed-in tariff (FIT)
scheme, and in fiscal 2022, our profit (after
deducting depreciation) was ￥6.5 billion. The

business is one of the core growth drivers under
our Group policy for environmental
management and our total investment on
projects that have already been approved has
grown to ¥363.1 billion, while at the same time,these projects are expected to eventually yieldan annual profit of at least ¥10.0 billion.
The track record and expertise we haveaccumulated since entering the business has built
a strong foundation for developing our own
projects and going forward, we will leverage thisadvantage to expand the business into new areas,such as the growth areas of non-FIT power
generation and offshore wind power.

Investment in power generation facilities (before depreciation) /gross profit from electricity sales(Billions of yen)

Investment (before depreciation)

Gross profit (Billions of yen)

400

363.1

275.9

300

9

141.1
80.5

100

7.8
0

2017

5.3

6.2

6.5

6

3.6

3

18.3
2018

2019

2020

2021

2022

2023
(Plan)

Total ofapproved projects* Profit from electricity sales (before deducting depreciation) for fiscal 2022: 16.7 billion yen

Developing renewable energy business using
the PPA model (onsite and offsite)
The power purchase agreement (PPA) model iswhen a business installs solar power generationequipment on the sites of clients that use a lot ofelectricity, in free spaces on buildings, or in offsite
areas, manages and maintains this equipment,
and sells the electricity generated to clients. We
are widely adopting this model, including forcompanies, schools, and local governments.

12

226.5
198.8

200

Advancing wind power projects from the initialdevelopment stage
We are involved in onshore wind power
generation projects from the initial stage ofdevelopment through to commercial operation.
We have also started exploring ways to fully
engage in offshore wind power generation,such as establishing a joint venture withoverseas partners.

0

Solar sharing
Solar sharing is when an agricultural business andrenewable energy business are operated in tandem
by installing solar power generation equipment on
agricultural land. We are currently working to build
a new business model that uses solar sharing tocontribute to solving social issues related to both
agriculture and energy, including carrying out
demonstration experiments in collaboration withcompanies and regions. We are also contributing tocommunity building by holding events during
planting and harvesting periods.

DX

Business policy
Utilization of intellectual assets

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

Human capital and organizational climate

GovernanceAs event at ReENE Solar Farm Higashi-Matsuyama

2) Realizing synergies
Switching data centers to
100% renewable energy
In Ishikari, Hokkaido, which has been
designated by the Ministry of the Environment
as a Decarbonization Leading Area, we areconsidering launching a data center that uses
100% locally-produced renewable energy.
Going forward, we will develop this project in a
way that will lead to solutions for social issues
related to energy and DX promotion andcontribute to regional revitalization.

(Rendering)

The exterior of the data center

35
Medium- to Long-term Growth Strategy

Group Policy—Environmental Management | Accelerating Renewable Energy Business Expansion

Working toward decarbonization by strengthening strategic businesses

Group policy
Environmental management

DX

Business policy
Utilization of intellectual assets

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

Entering new business areas withpartners Launching a grid-scalebattery businessIn fiscal 2023, Tokyu Land Corporation launched agrid-scale battery*1 business. Its power plants built
to date are already equipped with batteries, and as
the adoption of renewable energy in the electricity
markets continues to grow, the company is entering
the grid-scale battery business in anticipation of anincrease in demand for batteries that can play a rolein adjusting power supplies to avoid blackouts
caused by demand outstripping supply.
This business is being developed together withpartner companies. A large grid-scale storage
battery (rated output of 20 MW, rated capacity of
56 MW) has been installed at TENOHA
Higashi-Matsuyama where it can be viewed bymany visitors in an effort to promote the use ofgrid-scale storage batteries and contribute to thestability of Japan’s electricity supply system.

TENOHA Higashi-Matsuyama
A community co-creation project being
implemented together with local partners
with the aim of creating a place for
nurturing people, goods, and businesses.
It is building a facility that can facilitatebusiness collaboration and shared usage ina way that leads to regional revitalization.

Electricity markets
Business operation / overall management

Market transactions
Construction of an optimal battery system

Wholesale electricity market
Capacity market
Supply and demand adjustment market

Procurement of all system components,
including control equipment

Electricity gridBatteries
Battery operation

Charge and discharge

As more and more companies and local
governments begin working toward
decarbonization, demand for electricity under the
PPA model is growing. We are switching to
renewable energy at Group-owned facilities,
supplying it to private and public sector facilities,
and selling it to external parties, and we are using
our ability to make proposals based on this solid
track record as a strength to expand the use ofclean energy throughout society.
Logistics facilities attuned to people andthe environment
We are installing solar panels on the rooftopsof LOGI’Q logistics facilities. This enables us to
supply tenants with renewable energy that wehave generated ourselves, thereby stabilizing
their electricity costs, as well as enhancing theirsustainability and contributing to business
continuity planning efforts.

Grid-scale battery business
Grid-scale battery system

Promoting and expanding the
PPA model through co-creation

Supplying to public and private sector facilities
In February 2023, Tokyu Land Corporation was
selected to implement a project for introducing
renewable energy to schools in Yokohama. It is
proposing to install rooftop solar power
generation equipment and supply renewableenergy to 53 schools administered by the city.
This will contribute to Yokohama’s efforts torealize a model of local production for local
consumption for urban areas.

Delivery of battery units

Collaborating with a major onsite PPA operator
Tokyu Land Corporation has taken a stake in

Human capital and organizational climate

Governancei Grid Solutions Inc., a major operator of onsite PPA
projects, with the primary aim of collaborating on
initiatives to strengthen renewable energy power
plant development capabilities.
Launching a feasibility test for short-term
corporate PPAIn April 2023, the four companies of Takashimaya
Co., Ltd., Tokyu Land Corporation, ReENE Co.,
Ltd., and Digital Grid Corporation launched
Japan’s first initiative for large-scale offsite
corporate PPA on a short-term contract basis tosee if the idea is feasible. Over two years from
April 2023 to April 2025, approximately 4 MW
(rated capacity) of renewable electricity from
non-FIT solar power plants either already owned
or under development by Tokyu Land
Corporation will be supplied to Takashimaya’s
Yokohama and Takasaki stores by ReENE using
Digital Grid’s Digital Grid Platform*2.

Investing in a fund for PPA thatleverage non-FIT power plants
In July 2023, Tokyu Land Corporation and Sustech
Inc. established a fund to carry out joint investments
in non-FIT power generation facilities with theagreement that the operation of non-FIT renewableenergy facilities invested in will be carried out using
Sustech’s ELIC distributed electricity administration
platform. The fund plans to carry out equity
investments with an upper limit of ¥150 billion overa period of 10 years. This collaboration between two
companies that have knowledge of feed-in-premium
electricity sales schemes will aim to promote the useof renewable energy and realize a cleaner society
through the operation of non-FIT power plants.

*1. Batteries that are directly connected to the electricity grid and facilities like renewable energy power plants. They can store renewable energy, such as solar and wind power, and then use it to supplement the electricity being supplied to meet demand from households and buildings*2. An electricity marketplace that realizes peer-to-peer connections between a wide range of electricity sources, including renewable sources, and users

36
Medium- to Long-term Growth Strategy

Group Policy—Environmental Management | Special FeatureGroup policy
Environmental management

DX

Business policy
Utilization of intellectual assets

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

Human capital and organizational climate

Governance

The Future of the Renewable
Energy Business

Basic outline of the businessOur renewable energy businessleverages a wide range of expertise,including land development proposal
capabilities cultivated throughcommunity development and theability to collaborate with local
communities, to develop solar, wind,and biomass power plants. In terms ofscale, as of June 30, 2023, it operates 87
projects generating 1,612 MW (rated
capacity), which is equivalent to theannual electricity consumed by around
739,000 regular households. As demand
for renewable energy is expected torise, we are collaborating with partnercompanies and other stakeholders toadvance the business with the aim ofrealizing further growth.

Investing in growth areas, such as offshore
wind and rooftop solar, in order to meetgrowing renewable energy demand in Japan
According to the revised Outlook for Energy
Supply and Demand in FY2030 released by the
Ministry of Economy, Trade and Industry in
October 2021, renewable energy accounted for
18% of Japan’s overall energy mix in fiscal 2019
and the country has set an ambitious target of
raising this ratio to 36–38% by fiscal 2030. This
will involve increasing the total amount of
renewable electricity generated to 336–353
billion kWh. This ratio greatly exceeds theenergy mix forecast for fiscal 2030 released in2015, which was 22–24%, showing that factors
such as recent steep increases in energy prices
have further raised expectations regarding
renewable energy. This means that there isplenty of growth potential for the Group’s
renewable energy business.
In particular, the Ministry’s forecast of theamount of electricity generated by offshore
wind power plants in fiscal 2030 has increased.

The target for 2030 announced in 2015 was 2.2
billion kWh, but the 2021 announcement sets amore ambitious target for 2030 of 17.0 billion
kWh. This is approximately 7.7 times greater.
Also, in regard to solar power, which accounts
for the biggest portion of overall renewable
power generation, there will be an increase in
new projects, many of which are expected to be
rooftop projects rather than ground-based.
Within this environment, the Group willcontinue to invest in new initiatives with a focus
on growth areas, such as entering the offshore
wind business and expanding its rooftop solar
business. The renewable energy business is an
important revenue base that is driving theGroup’s policy on environmental management,
and going forward, we will focus on
medium-term development and work to findapplications for the business within community
development as a developer with power
generation capabilities that is willing to face
major social issues, such as urban green
transformation, head on.

Energy mix targets for FY2030(compared to FY2019)
Approx.
1,024.0
bn kWhRenewable

Approx.
18%

NuclearApprox.
6%

LNG

Approx.
1,065.0
bn kWhApprox.
934.0
bn kWhHydrogen/ammonia
Approx. 1%
Nonfossil
Approx.
24%

Approx.
36–38%

Approx.
37%
Approx.
20–22%

Approx.
22–24%
Non-fossil
Approx.
44%

Approx.
Non- 20–22%
fossilApprox.
59%

Approx.
27%

FossilApprox.
76%
Approx.

Coal

Approx.
32%

FossilApprox.
56%

20%
Approx.
19%

FossilApprox. Approx.
41%
26%

Crude oil, Approx.
7%
etc.

Approx.
2%

Approx.
3%

FY2019FY2030

FY2030(formulated
in 2015)*Source: The revised Outlook for Energy Supply and Demand in
FY2030 by the Ministry of Economy, Trade and Industry’s
Agency for Natural Resources and Energy (October 2021)

37
Medium- to Long-term Growth Strategy

Group Policy—DX | Policy SummaryGroup policy
DX

Environmental management

Business policy

Establishing a new revenue model by maximizing the values of assets and human capital

Utilization of intellectual assets

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

The Group’s policy on DX is to advance the strategy
of our long-term vision based on the three action
policies of Digital Fusion—removing all boundaries
with the power of DX, which is our DX Vision.
We have positioned digitalization as a means for
maximizing the value of our human capital and assets.
In our asset-utilizing businesses, we will work to solve
regional issues by leveraging our strengths, including
the ability to use a wide range of assets and ourbusiness direction capabilities, to combine digital andphysical elements in a way that draws people into
towns and cities. In our human capital-utilizing
businesses, we will use our considerable intangible
assets, including a wealth of customer contact points,
our human capital, and our operational expertise, toproactively work toward the creation of new value,such as data utilization that transcends organizationalboundaries and the realization of synergies. In
recognition of the specific initiatives we have
implemented to enhance customer interactions using
digital technology, we were selected as a Digital
Transformation Stock (DX stock) 2023.
Also, to promote DX, it is essential to establish
next-generation IT infrastructure and a humancapital base. We are focusing on strengthening our
information security environment and building
platforms for utilizing data. In regard to humancapital, we are systematically cultivating a pool of
employees who can play a central role in advancing
DX within the Group, who we are calling “bridge
persons.” Going forward, we will enhance thecompetitiveness and profitability of our businesses
and expand revenue opportunities so that we canachieve our medium-term management plan.

Human capital and organizational climate

GovernanceValue creation based on the DX
Long-term management policy

Strengths of the GroupAn integrated system from development, operations,and management to brokerage

Business
process

CX

Innovation

A wealth of customer touchpoints
focusing on real placesGroup policy for DX in the medium-term management plan

Establishing a new revenue model by maximizing the values of assets and human capital
Digital Fusion—removing all boundaries with the power of DX
Innovation

Business model transformation
Expansion of associated assets
Asset-utilizing business• Combining digital and physical elements todraws people into cities• Using digital technology to solve
regional issues

Human capital-utilizing business

Creating experiential
value in all situations• Providing services that have been optimized
through customer orientation• Turning management and operational
knowledge into services

Know-how and data
Business process

Promoting labor-saving operations
Next-generation IT infrastructure

Human capital base• Build a safe and secure infrastructure through a zero trust approach• Build platforms for aggregating and utilizing data thattranscend organizational frameworks• Securing human capital proficient in advanced digital technologies
at TFHD digital• Advancing programs for training a wide range of bridge persons

38
Medium- to Long-term Growth Strategy

Group Policy—DX | DX Initiatives

Group policy

Business policy

Creating value that contributes to new growth and greater competitivenessUtilization of intellectual assets

Using uniquely real-world experiences as a starting point for new value creation

Project overview

Point

At Niseko Tokyu Grand Hirafu, one of our ski resorts
User
in Hokkaido, we are trialing the sale of fast-track•Fast-track skiing privileges•Other special benefits
privileges, which enable holders to be first on the
Settlement using PLT P•Community membershipor credit card ¥powder snow in the morning, in an NFT*1 format.
NFT acquired
The scheme is cultivating new customers, generating •Promotions•Campaigns
PLT PlacePR effects, and creating connections with fans.
•Dissemination of
new information

Sales revenue P¥

NFT issued

Niseko ski resort•Facility operation•Project planning

HashPalette Inc. ×
Project team

Our sale of NFTs is providing
customers with new value
through an experience thatcan only be gained at a
certain time and place.
Through this initiative, wehave broadened the rangeof customers who use theresort, visualized ourfanbase, and created a newsource of revenue. Added
advantages, such ascompatibility with social
media and access to asecondary market, alsoenhance the value of NFTs
as products.

Co-creation with partners

Strengthen our management foundation

By promoting the Group’s policy on DX, we are aiming to establish new revenue models by leveraging various digital technologies tosolve regional issues and enhance experience value for customers.

Turning ski resort fast-track privileges into NFTs

DX

Environmental management

Financial capital strategy

Human capital and organizational climate

Governance

Creating impressive experiences by enhancing
customer interactions using digital technology

Using digital twins in housing sales
We are using digital twins*3 to realize sophisticatedrecreations of properties on our websites. This enables users
to view properties, such as houses, as if they are really
there. In fiscal 2022, thistechnology wasincorporated into sales
activities for BRANZ Mitaka,
BRANZ Chiyoda-Fujimi, and
BRANZ Jiyugaoka, and weplan to expand its usage to
An interaction from theinclude other properties.
customer’s perspective

Point
Using online connections to solve regional issues

Developing a digital area management tools service
We are using original NFC*2 tags in our regional area management activities to provide various digitalized services through face-to-faceinteractions.
Tokyu Fudosan Holdings GroupArea
Facility
Eventsinformation information• Provision of services in accordancewith preferences

Provision of
optimized
informationfor eachindividual
Visitors
Residents
Workers

PublicWeather/ Traffic
servicedisasterannouncements information

Provision of pleasantexperiences Creatingfans of the area
Real experiences /devices capture behavior

Digital 1-to-1
communication tools
Analysis and useof obtained data

Information filtering in accordance withpreferences based on individual usage records

Digitalization of
face-to-face interactions

Other companies• Introduction to facilities
operated byother companies• Customer referrals

Information obtained throughface-to-face interactions• Traffic• Store events

This technology allows a wide range of simulations to bemade in accordance with customer needs, enabling
effective viewings while removing burdensome travel
requirements. It also contributes to reducing the costs andenvironmental impact involved in operating show homes.

Point

This enables events andother operations to be
managed effectively while
also obtaining informationon the attributes andbehavior of visitors. It also
creates fans for the region
by optimizing theprovision of customized
information to each visitor,
creating lasting
connections, and providing
pleasant experiences.

Using AI to improve operational processes

Crack Scanner—An exterior wall crack
detection tool
We have made the process of detecting cracks in exterior
walls, which was previously a manual task, more efficient
using AI-based image analysis. This technology has been
patented as Crack Scanner.

Change in the detection method

Area user traffic information andother collected data used to provide new services*1. Non-fungible token: A unique digital data asset that includes unforgeable certification of ownership and authenticity*2. Near field communication: Wireless communication between two electronic devices over a short distance*3. Digital twin: A virtual recreation of a real-world space that enables high-precision simulation

Manual measurements
taken using a specialized ruler

Picture taken using a smart
phone is then analyzed by AI

39
Medium- to Long-term Growth Strategy

Group Policy—DX | Special FeatureGroup policy
DX

Environmental management

Business policy
Utilization of intellectual assets

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

Human capital and organizational climate

Governance

Creating “Bridge Persons” to Drive DX

The importance of DX talent

Developing DX talent within the GroupAs the evolution of digital technology
rapidly transforms both business andsociety, DX is gaining more and more
attention in Japan. Within thisenvironment, it is being said that a lotof Japanese companies are fallingbehind with their response.
According to the Ministry of
Economy, Trade and Industry, one of
the major reasons for this is a
shortage of human resources who
have the qualities and expertiseneeded to advance DX. In 2022, theMinistry formulated the Digital Skill
Standards. Its intention is to show
companies the role of humanresources and the knowledge andskills they should acquire to advanceDX inhouse, as well as to create
practical learning opportunities forcultivating these personnel.

We have positioned “bridge persons,” who areemployees with both an understanding of ourexisting businesses and knowledge of digitaltechnology, as the key personnel for advancing
DX within the Group. We are working tosystematically develop these personnel byhelping them learn the knowledge and skills
they should have while also providing
opportunities for gaining a variety ofexperiences. Also, as we engage in a broad andvaried range of business areas, we are usingdevelopment methods that take into accountthe characteristics of each business.
At Group companies that mainly engage
in asset-utilizing businesses, we are holding
workshops on envisioning what urban
development will be like decades into the
future, which includes using examples ofadvanced urban development from overseas
and services developed from new concepts as
references. We are exploring ways to develop

business in a way that avoids fixating too
much on our current assets and uses digitaltechnology to create added value.
On the other hand, at our Group
companies that mainly engage in humancapital-utilizing businesses, we are leveraging
the Group’s distinctive characteristic ofengaging in large numbers of customer
interactions to create opportunities for
employees to feel involved incustomer-oriented business design. Also, as
we anticipate that securing personnel will
become increasingly difficult in the future,
we are also implementing a program throughwhich employees can learn skills for using AI
to raise their productivity.
Other initiatives include an OJT programin which selected employees work withexternal instructors to explore projects thatthey could potentially advance within theGroup, and seminars by specialists thatprovide broader learning through specificexamples of digital technology usage. In thisway, we are enhancing efforts to bothdevelop the bridge persons who will drive DX
within the Group and to provide afoundation that supports their efforts withthe aim of swiftly realizing advanced DX
across the entire Group.
Going forward, we will continue to create
new value by adapting to the evolution ofdigital technology and the changing needs ofour customers through our DX talent.

A session of an intra-Group training program(course on data utilization)

40
Medium- to Long-term Growth Strategy

Business Policy | Policy SummaryGroup policy
Environmental management

DX

Business policy

Evolve the associated assets expansion model through the utilization of
intellectual assets and co-creation with partners

Utilization of intellectual assets

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

Human capital and organizational climate

GovernanceUtilization of intellectual assets and co-creation with partners
The goal of the business policies formulated
under our long-term management policy is to
evolve the associated assets expansion model by
increasing our focus on the utilization of
intellectual assets and co-creation with partners.
Our definition of associated assets is not
limited to assets under management, such asGroup-owned assets, REITs, and other funds. It
also includes assets entrusted to us by customers
in our property management, real estate agent,and other businesses. In our previous
medium-term management plan, we pursued
the expansion of associated assets as a business
policy, and accordingly, we were able to growprofits by taking advantage of one of theGroup’s strengths, which is our customer
networks in a wide range of businesses, fromproperty development to property management
and operation. In order to build on the platform
we have created under this policy and further
evolve the associated assets expansion model,
we will strengthen the utilization of intellectual
assets and co-creation with partners to advancevalue creation that leverages our value chains.
Regarding the utilization of intellectual
assets, we will accumulate expertise and datafrom associated assets and then put these to use
with the aim of expanding incidental earnings
and capturing new earnings opportunities.
Regarding co-creation with partners, we will
break away from a closed, fully in-houseapproach and actively use external resources,
including knowledge and funding, to maximize
business value. We will also work to absorb andaccumulate expertise through collaboration
with outside partners.

External
partners

External
partners

Tokyu Fudosan Holdings Group
Expansion of associated profits

Existing business policy

Expansion of
associated assets
Group-owned assets
REIT and fund assets
Customer assets

External
partners

New revenue opportunities

Know-how anddata acquisition andutilization cycle

Strengthening business policy

Utilization of
intellectual assets
Know-how and data regarding development,
asset operation,
real estate agent business,and building management and operation.

Maximize business value through external collaboration
concerning knowledge, funding, etc.
Strengthening business policy

Co-creation withpartners

External
partners

41
Medium- to Long-term Growth Strategy

Project

01

Case Study: Realizing Smart Cities

Group policy
Environmental management

DX

Business policy

Utilization of intellectual assets

Smart City Takeshiba —Combining area management andtechnology in Japan’s leading smart city

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

Human capital and organizational climate

Governance

Project overview
TOKYO PORTCITY TAKESHIBA, which opened in September 2020,
comprises the Office Tower, with 40 floors above ground, and the
Residence Tower, with 18 floors above ground. These have a
combined total floor area of approximately 200,000 m2. This project
has been certified as a qualified project in the National StrategicSpecial Zones initiative and it aims to create an international
business hub as a focus point for digital and content creationindustries. The project is being led by Takeshiba Area Management,a general incorporated association in which Tokyu Land
Corporation owns a stake, and it is engaged in efforts including
regional revitalization and the realization of Smart City Takeshiba
under the smart city concept.

Realizing a smart city through co-creation and DX
Tokyu Land Corporation is engaged inco-creation with SoftBank Corp. with a focus
on building a smart city model that utilizes
leading edge technology throughout the entire
city. One of the major initiatives of this projectis the operation of Smart City Platform, anurban operating system that will enable arange of businesses to utilize a variety of datacollected in the Takeshiba area, including
human traffic flow, visitor attributes, roadconditions, traffic conditions, and water levels,in real time. We are also working to implement
new services that utilize cutting-edge
technologies. These initiatives help address
issues in Takeshiba and the surrounding areaby improving mobility, easing congestion, andstrengthening disaster resilience. The projectwill work to promote economic development
and create added value in the area via
cross-sector services. Over the three years since
fiscal 2020, Smart City Takeshiba has been

adopted as an initiative in the Smart City Tokyo
project*, and we are using this as an opportunity
to accelerate our progress.
Also, since fiscal 2020, we have been
participating in Project PLATEAU, an open data
project being led by the Ministry of Land,
Infrastructure, Transport and Tourism focused on
the creation and use of 3D urban models, andwe have developed multiple usage cases. This
includes running disaster simulations and testing
emergency response. Additionally, we are
combining our urban development capabilities
and ability to drive forward area management,
which have been applied in multiple practicalsmart city models, with SoftBank’s technology
and knowledge related to smart cities toadvance disaster preparation measures for theentire city. In this way, we will strive to enhancethe disaster response capabilities and regional
value of the Takeshiba area while realizing
next-generation community development.

Smart City Platform
Collecting and analyzing a wide range of data
Disaster data

Social media data

Tide level data

Weather data

River water level data

Traffic/crowd data

Traffic data

Road surface water level data

Evacuation shelter vacancy data

Visualize local
disaster information

Visualize local
hazard information

Support for people
unable to return homeduring disasters

Support for the best
course of evacuation

Disaster information

Information on
the local situation

Evacuation center
location /vacancy status

Hazard information*A project being implemented to lead progress toward the realization of a Tokyo version of society 5.0, a society where citizens can enjoy a high quality of life. This is being achieved by using digital technology to draw out Tokyo’s potential and enhance quality of service.

42
Medium- to Long-term Growth Strategy

Case Study: Realizing Smart Cities

Group policy
Environmental management

DX

Business policy

Project

01

Utilization of intellectual assets

Smart City Takeshiba—Combining area management andtechnology in Japan’s leading smart city

Financial capital strategy

Co-existing with the local environment and community

Using technology to deliver smart urban residences

The Takeshiba area contains offices, hotels,
theaters, commercial facilities, schools, gardens,
and other attractions, and it is also surroundedby areas that are highly competitive on aninternational level, such as Otemachi,
Marunouchi, and Yurakucho, which comprise aninternational financial center, and Shinagawa
and Machida, which are attracting attention astransportation hubs. Tokyu Land Corporation is
implementing various initiatives that aim toachieve sustainable community development byenhancing the appeal and vitality of the entire
area. This includes fostering visitor networks byestablishing a pedestrian deck that stretchesfrom Hamamatsucho Station through toTakeshiba Station and Takeshiba Pier. Once theconstruction of a walkway above JR
Hamamatsucho Station has been completed,
there will be unobstructed pedestrian accessfrom the ticket barriers all the way to TOKYOPORTCITY TAKESHIBA Office Tower.
Office Tower’s Skip Terrace, which contains
the Eight New Views of Takeshiba, is a spacethat is open to the surrounding area throughwhich we are trying to create a lush green
environment under the management ofIshikatsu Exterior Inc. It even contains 145 m2 ofTOKYO PORTCITY TAKESHIBA Residence Tower,
which is connected to TOKYO PORTCITY
TAKESHIBA and Takeshiba Station via apedestrian deck, is an urban smart residence thatbrings together many different technologies tooffer lifestyle proposals suitable for an era ofdiverse values. Tokyu Housing Lease handles the
management and operation of rental units andby offering a selection of housing styles that canbe chosen in accordance with living environment
preferences (residences, premium residences,serviced apartments, share houses) and diverse
communal spaces, it is raising the comfort ofeveryday living and proposing new smart
lifestyles in which a resident's workplace is close
to their home.
The tower uses IoT equipment to provide
highly functional living spaces through aspecialized app for residents (functions include
visualization of electricity consumption andcontrol of appliances and water heaters) and it
also features smart mirrors (containing a digital
display) and virtual windows (shows sceneryfrom all over the world). These various smart
residence proposals are contributing to thedevelopment of the Takeshiba area and thecreation of a smart city model.

rice paddies that are being used to hold rice
planting and harvesting events for children fromlocal nurseries, people connected to thebuildings’ tenants, and residents of theresidential tower. We are using the Eight New
Views of Takeshiba for environmental education,
regional exchange, and information sharing inorder to showcase Japan’s urban biodiversity
initiatives.
Also, Takeshiba Area Management, a generalincorporated association in which Tokyu Land
Corporation owns a stake, is engaged in a wide
range of activities through public-private
collaborations with Minato City and local
businesses. These focus on areas including smart
city promotion and use of public spaces, as well
as local MICE*, the rejuvenation of watertransport, roadway use (open-air cafes andbanners), and participation in local festivals. By
connecting together various initiatives for solving
the region’s issues and leveraging its appeal, we
will encourage the creatin of new value, thereby
raising the area’s value.
*MICE: An acronym for Meeting (corporate conferences), Incentive travel(corporate training and rewards), Convention (for international organizations
and academic groups) and Event/Exhibition (exhibitions and trade shows). It
refers to business events that entail a large convergence of people.

Co-creation with partners

Strengthen our management foundation
Human capital and organizational climate

Value chain topics

Taking on new challenges
through Group collaboration
Tokyu Housing Lease has been involved in the
TOKYO PORTCITY TAKESHIBA Residence Tower
project since the development stage and wehave introduced IoT equipment that leverages
leading edge technology such as facialrecognition systems and smart locks. The
building is also distinctive in offering a richselection of communal spaces, including
multiple lounges to accommodate various
purposes and a fitness room. When
construction was completed, there wasnothing else like it in the area, so when
considering ways to operate the equipment
and facilities, we had to leverage all theexpertise we have cultivated to date while also
referring back to the design concept. It took
many, many discussions to finalize roomlayouts and rental prices.
As a result, we received a huge response assoon as we started taking rental applications
and most of the units were filled before
construction was completed. Over the three
years since the building opened, we havemaintained a high occupancy rate and I haveheard from many
residents that theywant to move to a
bigger unit within
the building, giving
the strong
impression that the
tower is well liked
by its occupants.

Tatsuro Sasagawa
Senior Staff Member
Tokyu Housing Lease Corporation
The Eight New Views of Takeshiba

The Shiba Daijingu Daradara Festival

TOKYO PORTCITY TAKESHIBA Residence Tower’s entrance hall

Governance43
Medium- to Long-term Growth Strategy

Project

02

Case Study: Advancing Building Preservation and Regenerative Architecture

Connecting historic buildings with future generations
The regeneration of Kudan-Kaikan Terrace through cutting-edge
technology and environmental awarenessProject overview
Reopened in October 2022. Throughco-creation with Kajima Corporation, we
preserved a section of the former Kudan
Kaikan, which is a registered tangible culturalproperty of Japan, while also reconstructing it
as Kudan-Kaikan Terrace, a building thatoffers some of the finest views of Central
Tokyo, looking over Kitanomaru Park and theImperial Palace moat. The name Kudan-Kaikan
Terrace reflects the building’s terrace
landscape, which incorporates the greenery of
Kitanomaru Park, while keeping the former
Kudan Kaikan’s name alive. In this way, it is asymbolic project for the area that will pass on
historic value to future generations.

Group policy
Environmental management

DX

Business policy

Utilization of intellectual assets

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

Human capital and organizational climate

GovernanceJimbocho sta.
Kudanshita sta.

Blending master craftsmanship from 90 years ago with cutting-edge technology

Yasukuni Shrine
Nippon Budokan

Kudan-Kaikan Terrace
Kitanomaru Park
National Museum ofModern Art

Takebashi sta.

Hanzomon

Kudan-Kaikan Terrace comprises a preserved
section, that conserves and restores the original
building in a way that fully utilizes its Teikan
style, a Japanese architectural style that was
popular at the time of its founding, and a newbuild section containing 17 above ground floorsof state-of-the-art office space that utilizes IoT
and offers views of the Imperial Palace moat.
The former Kudan Kaikan was built 90 years
ago, so the materials from that time are difficult
to procure and the craftsmanship is difficult torecreate. Therefore, we realized co-creation thatcombined the office development abilities of theGroup with the technical capabilities of Kajima
Corporation in order to leverage as much of theoriginal building’s historical value as possible
and utilize it in an advanced manner. The goal
was to transform the building through a uniquedesign that blends old and new. The preserved
section is not just for display. We are preserving
it in a state that keeps it fit for daily use torealize a space that merges tradition with
innovation so that users feel more connected tothe history of the former building.

The Banquet Hall Pearl, operated by Kudan-Kaikan Terrace
Conference & Banquet Its original design has been preserved
and restored

View Smart Glass

In the reconstruction, we incorporated anenvironmentally friendly perspective that links
to the circular economy. We were able toreduce CO2 emissions by about 75%* of thelevels generated during new construction byusing resources effectively and preserving andreusing the existing building. It also became
the first office building in Japan to beequipped with View Smart Glass created by
US-based View, Inc. This system uses sensors
mounted on the building’s roof and AI to
optimize the levels of natural light and heatwithin the building, reducing electricity
consumption by as much as 20% compared toregular low-emissivity glass.
The building also uses the Smart City
Platform developed for TOKYO PORTCITY
TAKESHIBA. The platform operates various IoT
solutions in an integrated manner to enhance
security within the building, reduce thebuilding management workload, and mitigate
congestion, among other benefits, thereby
contributing to the safety and peace of mindof users.

*Comparison refers to preserving sections of the building. We estimated that fully dismantling and reconstructing the existing building would generate
82 tons of CO2 emissions, while advancing construction in which certain sections of the existing building are preserved would generate 21 tons.

44Medium- to Long-term Growth Strategy

Case Study: Advancing Building Preservation and Regenerative ArchitectureGroup policy
Environmental management

DX

Business policy

Project

02

Considering the physical andmental health of office workers

Harmonizing with nature andthe local community

Kudan-Kaikan Terrace includes a variety offacilities that propose new working styles under
the theme of “health.” We collaborated withmonosus inc., a company that is working torealize a recycling-based society, to establish
Kudan-Shokudo. This is a worker cafeteria basedon the new concept of involving users in theconsideration of everything from the production
through to the consumption of food. The menu
offers a selection that caters for diverse lifestyles
and health conditions in order to provide meals
that support well-being. In addition to this, thebuilding contains Business-Airport Kudanshita, amembership-based shared office facility which
has a dining zone that can also be used bynon-members, providing a space forcommunication. There is also a Clinic Mall. Thesefacilities have been highly rated by tenants as
being beneficial to their health and productivity
management initiatives.

Within the Kudan-Kaikan Terrace grounds, wehave established a rooftop garden surroundedby greenery, the Kudan Hiroba plaza space, andthe Kudan Komichi walkway as spaces that will
help raise productivity by encouraging external
exchange and providing workers with a natural
boost through greenery.
Kudan Hiroba is receiving recognition for its
design, which aims to create a green space in theheart of the city that actively draws thecommunity in, and it won the Grand Prize forGreening (Symbol Garden Category) at the 32nd
Green Environmental Planning Awards.
Also, we have shown respect for the historyof the site and balance with local biodiversity bytaking species native to the area into
consideration when choosing saplings.

Kudan-Shokudo, which features a design thatnaturally encourages communication

Kudan Hiroba

Utilization of intellectual assets

Connecting historic buildings with future generations
The regeneration of Kudan-Kaikan Terrace through cutting-edge
technology and environmental awareness

Financial capital strategy

Clinic Mall, which includes a clinic,
a dentist’s office, an ear, nose,and throat specialist, and a pharmacy

Human capital and organizational climate

GovernanceValue chain topics

Taking on new challenges through Group collaboration
One cherry blossom season has passed since thebuilding’s opening and visitor numbers have remained
consistently high. Among all these visitors, one scenethat made a particular impression on me was an elderly
couple who seemed to be looking at the facade withnostalgic expressions. That moment reminded me that
we have a responsibility to manage and operate thisbuilding as an important part of the Kudanshita scenery
which is steeped in history dating back to the earlytwentieth century. Since development started, we haveworked to strengthen our management framework
and bring together the opinions and knowledge thateach person involved in the project has cultivated basedon their individual backgrounds with the goal of giving
the former Kudan Kaikan a new life as Kudan-Kaikan
Terrace, an appealing building that merges tradition
with innovation. We are doing our best to ensure that
it will remain a well-loved place and a symbol of the
Kudanshita area for a long time to come.

Hiroshi Shimada
General Manager
Kudan-Kaikan Terrace Management Office(on secondment from Tokyu Land Corporation)

Rooftop Garden, located on the fifth floor

Co-creation with partners

Strengthen our management foundation

From left: Suguru Iguchi, Hiroshi Shimada, Masaki Okudaira

One year before the building opened, I was seconded toTokyu Land Corporation to support preparations for the
opening. At first, I struggled to incorporate theperspective of managing a cultural property into ourapproach as a developer but after plenty of trial anderror, the feeling of achievement I received when we
successfully opened was the greatest of my life so far. I
was also able to leverage my experience of working at
Tokyu Community Corp. to smoothly align the directionof the companies involved in the collaboration,
particularly in terms of administration. Going forward, we
will aim to leverage the characteristics of the local areaand ensure the facility is open to the community throughfacility management that raises visitor numbers andcontributes to the satisfaction of people living in the area.

My secondment involved moving from construction to
the completely different industry of real estate, and I
remember how nervous I felt at first. However, as the
project moved forward, I found that although thecontent of the work was different, it was underpinned
with the same basic desire to create something good. I
was able to leverage the ability to make proposals andthe leadership skills that I cultivated at Tokyu Re・design
Corporation to draw out the latent needs of tenants
and increase customer satisfaction. Now, in addition tostrengthening relationships with tenants, we will aim
to create new value from a community building
perspective as a symbolic building with deep roots in
the Kudan area.

Masaki Okudaira

Kudan-Kaikan Terrace Management Office(on secondment from Tokyu Re•design Corporation)

Assistant Manager
Kudan-Kaikan Terrace Management Office(on secondment from Tokyu Community Corp.)

Suguru Iguchi

45Medium- to Long-term Growth Strategy

Human Capital and Organizational Climate | Human Capital Management

Group policy
Environmental management

DX

Business policy

Message from the Officer in Charge

Utilization of intellectual assets

Becoming a collection of human capital which creates an unending stream of value

Jun Kodama
Operating Officer
Supervisor for the Group
General Administration Department,Group Legal Affairs Department,
and Group Human Resources Department
Tokyu Fudosan Holdings Corporation

Approach to humancapital management
As we enter an era of great change in theenvironments around both companies andindividuals, human capital is becoming ever more
important. The Group comprises over 100
companies and approximately 30,000 employees, so
I think it is essential that we strengthen ourmanagement foundation to create an organizationthat engages its diverse workforce. Our Group
perceives the knowledge, skills, and drive of ouremployees as “human capital.” We will be actively
investing in our human capital and formulating andimplementing human capital strategies thatinterlock with our management strategies. We areconfident this will lead us to our aims—to “create
value for the future” and “a future where everyone
can be themselves and shine vigorously.”

Our human capital philosophy andthree human capital strategies
To achieve GROUP VISION 2030, our vision for what wewant the Group to be by the year 2030, we haveestablished a human capital philosophy of aiming for
growth and the creation of a sustainable society withevery employee having “challenge-oriented DNA” anda “mission to engage in society.” Based on thisphilosophy and our management strategies, we haveformulated and are moving forward with threehuman capital strategies as policies to be
implemented—”Develop people who create value,”“develop organizations with diversity and a sense ofunity,” and “enhance motivation to work and foster
an employee-friendly work culture.”
The first, developing people who create value
is a policy for cultivating human resources basedon our Group philosophy and management
strategies. Together with instilling the Groupphilosophy, we are striving to achieve ourlong-term vision through measures interlinking
our Group policy, namely developing DX talent
and advancing human capital development basedon environmental management. In instilling ourphilosophy, we are putting particular effort intostrengthening horizontal coordination between
Group companies under our WE ARE GREEN
slogan. We have established the degree of
personal investment in achieving the long-term
vision of executive officers at each Group
company as a KPI, enhancing the impetus torealize this vision. As this KPI applies to operating
officers, I will be personally taking the lead andactively engage in Group coordination.
The second strategy, developing organizations

Co-creation with partners

Strengthen our management foundation
Financial capital strategy

Human capital and organizational climate

Governancewith diversity and a sense of unity is a policy
which concerns the establishment of an internal
environment which supports the Group’s value
creation. In addition to promoting the success of
women in the workplace, such as increasing theratio of female managers; and promoting theworkplace success of diverse human capitalthrough diversity, equity, and inclusion (DE&I)
initiatives, we believe that fostering anorganizational climate which is highly innovativeand psychologically safe is essential to theembodiment of “challenge-oriented DNA” andthe creation of value which maximizes the Group’s
value chain. It was a formative experience for me
to be assigned to a commercial facility for the firstfew years after I was hired and struggle with thedifficulties of facility operation and management
alongside the employees of the affiliatedequipment, cleaning, and security companies. I
still vividly remember the difficulty of overcoming
organizational boundaries to coordinate thecapabilities of the diverse members involved, andjust how much could be accomplished when
everyone was aligned along the same vector.
The third strategy, enhancing motivation towork and fostering an employee-friendly work
culture is a policy which concerns theestablishment of an internal environment which
supports each individual employee. In addition to
implementing health and productivity
management and supporting diverse working
styles in line with individual life stages, we arealso monitoring initiatives to increase employee
engagement from the perspective of job
satisfaction as a key measure.
By engaging in these three human capital
strategies, we will aim to realize environments where
employees can work with motivation and ambition
and in good physical and mental health. At the sametime, we will also aim to produce human resources
who are highly-productive and widely contribute tosociety and, in turn, maximize our value chain.

Dissemination of Group philosophy“WE ARE GREEN” measures

FY2022
results“WE ARE GREEN” was established as the Groupslogan in GROUP VISION 2030. Green is both our
corporate color and a color which symbolizes theenvironment and sustainability. “WE ARE GREEN”
expresses our intention to combine the diverse
green capabilities the Group develops and create
new value. We are working to deliver a unified
message and enhance awareness and permeation
through television commercials, information
sharing on our portal website T-MAG, e-learning
for all our employees, and joint Group training for
new hires. Of particular note, during e-learning

for the 140 operating officers of the Group’s
companies, we measured their degree of personal
investment, representing the degree to which
they personally had implemented Group
coordination, receiving an answer of 84%.
Aiming for 90% in 2025, we are striving toincrease awareness of Group coordination among
our senior
management
members.

Degree of personal investment in achieving thelong-term vision of executive officers at eachGroup company (extent of Group coordination)

84% (140 operating officers total)

The Group slogan: “WE ARE GREEN”

46
Medium- to Long-term Growth Strategy

Human Capital and Organizational Climate | Human Capital Management

Group policy
DX

Environmental management

Business policy

Establishing a structure for implementing human capital management based on
our human capital philosophy

Utilization of intellectual assets

Financial capital strategy

Human capital and organizational climate

Our approach on which our human capital management is based

Human capital management implementation structure

To achieve GROUP VISION 2030 and our
medium-term management plan, the aim of theGroup’s human capital management is to formulate
and implement human capital strategies thatinterlock with our management strategies. By
investing in the human capital that is one of thesources of the Group’s competitiveness, we areaiming to strengthen our management foundationand in turn maximize the Group’s comprehensive

We have established a structure for implementing
human capital management to ensure theinterlinking of human capital and management
strategies. After receiving reports on humancapital strategy issues and KPI progress, theSustainability Committee and Risk Management
Committee discuss what course to take together
with senior management members and report theresults to the Board of Directors.
In addition, to implement our human capital
strategies across the Group, we hold Group
Human Capital Council meetings twice a year,
sharing our vision with the Group’s companies
and at the same time engaging in thecomprehensive monitoring of human capitalissues and KPIs. Further, meetings of the following
cross-sectional sub-working groups are also held:
The Diversity Implementation Council,
Recruitment Strategy Council, Labor Management
Council, Disabled Persons Employment Liaison
Council, and Health and Productivity
Management Information Exchange Council.
The Recruitment Strategy Council deliberates
and reports on matters concerning employee

strength. Having formulated a human capital
philosophy that bears the progressive spirit of thechallenge-oriented DNA passed down since ourestablishment, each and every one of ouremployees, from senior management members
down, will create high social value. Through this,we will aim to be a corporate group that balances
diversity and unity as we implement humancapital management.

Our ideal vision
Create value for the future
A future where everyone can be themselves and shine vigorously
GROUP VISION 2030
Building a solid and distinctive business portfolio
Medium-term management plan
Creating unique value through environmental management and DX

The Tokyu Fudosan Holdings Group’s human capital management
Human capital philosophy

Aiming for growth and the creation of a sustainable society withevery employee having “challenge-oriented DNA” and a “mission to engage in society”

Develop people
who create value

Human capital strategies

p. 72

Develop organizations withdiversity and a sense of unity

Enhance motivation to workand foster an employee-friendly
work culture

Strategy measures and human capital KPI
Implementation structure

p. 75

Implementation
structure

Co-creation with partners

Strengthen our management foundation
Governancerecruitment and assignment, namely issues
concerning the recruitment of new graduates andmid-career hires. The council is involved inrecruitment activities at the Group’s companies inaccordance with our vision of the kind of humancapital the Group requires.
The Group Human Capital Council deliberates
and reports on issues concerning human capital
cultivation, transfers, evaluations, andcompensation. To support individual growth, eachGroup company operates systems such as job
rotation systems, internal free agent (FA) systems,
and open application systems in order to enhancethe organizational capabilities by placing the rightindividuals in the most appropriate positions. We
also maintain and operate evaluation andcompensation systems adapted to the uniquecharacteristics of each Group company andbusiness. Our evaluations are not restricted to justbusiness results. They consider an employee’s
participation from various angles, including
conduct, demonstration of capabilities, and 360°
evaluation, nurturing growth from a mediumand long-term perspective.

• Platforms for connecting with the Board of Directors• Maintenance of a structure and mechanisms for strategy implementation such as
monitoring activities and the establishment of various councils

Structure and mechanisms
Board of Directors
Sustainability Committee / Risk Management Committee

Group Human Capital Council
Diversity Implementation Council
Discusses and reports on
issues in implementing DE&I
Disabled Persons Employment
Liaison Council

Recruitment Strategy Council
Discusses and reports on
issues with recruitment

Labor Management Council
Discusses and reports onchallenges with labor
Health and Productivity Management
Information Exchange Council

47
Medium- to Long-term Growth Strategy

Outside Director Discussion

Expecting improved earning power in the medium andlong term through the Group’s own unique style of environmental management and DXFive outside directors with diverse professional backgrounds and areas of expertise candidly exchanged their views on the Group’s medium-term management plan andgrowth strategies, discussing plan and strategy progress, their future expectations in these areas, and relevant issues which need to be addressed.
Rebuilding the Group’s business portfolio andits financial capital strategy

The Group’s management plan issteadily being implemented, ROE is
improving, and the decision-makingof the executive team is well-regarded—How do you evaluate our progress in therebuilding of the Group’s business portfolio under
its long-term management policy?

Satoshi Miura

Tsuguhiko Hoshino Saeko Arai

Yumiko Jozuka

Outside Director

Outside Director

Outside Director

Outside Director

Makoto Kaiami
Outside Director

Mr. Miura’s career has
encompassed key positions in the
NTT Group, including President of
Nippon Telegraph and Telephone
Corporation, as well as Vice Chairof Nippon Keidanren (Japan
Business Federation). He wasappointed an outside director
in 2021.

After joining the Ministry of
Finance, Mr. Hoshino wasinvolved in the establishmentof the Financial Services
Agency and later served as
Director General of the Tax
Bureau and Commissioner of
the National Tax Agency. He
was appointed an outside
director in 2021.

Ms. Arai began her career as acertified public accountant
providing auditing and otherservices. She later managed acompany in the United States,
co-founded an IT company, andbecame the first female CFO in
Japan. She was appointed an
outside director in 2018.

Ms. Jozuka has specialized
knowledge from her extensive
career as a government official
in the Japanese Ministry of
Health, Labor and Welfare andthe Cabinet Office, where she
focused on promoting workstylereform and women’s
participation in the labor force.
She was appointed an outside
director in 2021.

Mr. Kaiami has abundant
knowledge and experience in thefield of compliance. His career has
included positions as Associate
Vice-Minister of Justice in chargeof Litigation Affairs, Minister's
Secretariat, Ministry of Justice;
Chief Judge, Tokyo Family Court;
and Chief Judge, Tokyo District
Court. He was appointed an
outside director in 2018.

Kaiami One of the points of the Group’s
long-term management policy is the rebuilding of
its business portfolio. As part of this, what to dowith Tokyu Hands became a frequent point of
discussion by the Board of Directors. Tokyu Hands
had a strong brand image and even we outside
members had a strong attachment to it, nevermind the Group’s employees. The COVID-19
pandemic resulted in the deterioration of Tokyu
Hands’ performance, but even so, I think it took a
lot of courage to make the decision to transfer its
shares in March 2022. Cainz, the receiving
company, is a partner who shares the same ideals
as Tokyu Hands, and I am very glad they were able
to make the best use of Hands. This decision also
resulted in an increase in ROE for the term, andI praise the executive team for making it.
Arai I feel the same way. In terms of the Group’s
financial capital strategy, as well, the series of drastic
revisions made to the business portfolio haveprovided a major boost to the improvement of ROE.
At the same time, however, our D/E ratio is still highcompared to other enterprises in the same industry,and I’d like to see efforts being made in the medium
and long term to strengthen our earning power andimprove this ratio.
Digital transformation (DX) will be importantin this area, as well as many others. Promoting
digitalization, which ties into DX, while also giving
consideration to what’s best for the entire Group

48
Medium- to Long-term Growth Strategy

Outside Director Discussion

centering on Tokyu Fudosan Holdings will further
improve ROE. At the individual project level, as well,
it is crucial to make decisions in accordance with ahurdle rate based on the cost of capital, so I
definitely want to see continuing efforts in this area.
I’d also like to note I can sense a
determination to achieve the KPIs of themedium-term management plan, not only frommanagement but also from frontline employees.
I believe this kind of determination derives fromthe “challenge-oriented DNA” that is this Group’s
founding spirit.
Hoshino Ms. Arai touched on KPIs, and I
believe that working to improve asset efficiency
and increase control of investment spending andrecovery after setting appropriate indicators is afoundation for growth. Having a bird’s-eye view of
the Group’s businesses as a holding company, weevaluate these businesses based on shared
indicators, take a chronological view, provide
external statements and explanations, and also
provide satisfactory internal explanations. I feelthat our financial capital strategy is providing aclear vector to align with, and this has enabled
the effective revision of our business portfolio.
However, while we are currently riding thewave of a healthy real estate market and arecovery in inbound demand for tourism, going

forward we should keep a close watch on themacro economy and financial conditions overseas.
I feel it is important that we continue to engage inthorough monitoring of these areas and takethem into consideration.
Reforming our human capital andorganizational climate

Praise for our human capital strategies
and organizational structure;
further promoting women's successin the workplace is the next step
—With regard to its human capital andorganizational climate, the Group has establisheda strategy of fostering an innovative
organizational climate with a sense of unity. What
are your views on our progress in this area?
Miura I feel the executive team has done much
to foster a sense of unity throughout the Group.
Centering on the Group’s holding company, they
have made clear their vision and management
policy while creating and implementing the
medium-term management plan. Having theleaders of key Group companies serve as
members of the holding company’s Board of
Directors makes it possible to share information
and align along the same vector, and I believe thecomposition of the Board is functioning well.
The Group has also stated that it is working
to strengthen external coordination, and in fact
we have engaged in partnerships with JR East as
well as a variety of others and additionallyengaged in the exchange of personnel, and these
efforts have produced synergies. I feel that this
aspect has also furthered the fostering of ourcorporate culture. In fiscal 2023, we havecontinued to make good progress in our
medium-term management plan and I believe thishas also had a positive impact both on theconfidence of the Group as a whole and in thefostering of organizational climate.
Jozuka Currently, there is much attention being
paid to human capital strategies that interlock
with management strategies. It’s an approach
which identifies the kind of human capital andorganizational structure needed based on a vision
for one’s future businesses drawn frommanagement strategies. For our Group as well,this perspective will be important in acquiring andcultivating human capital.
One thing I would particularly like to praise is
the Group’s establishment of its three humancapital strategies—“Develop people who create
value,” “develop organizations with diversity and asense of unity,” and “enhance motivation to workand foster an employee-friendly work culture”(
See p. 72 ). Through the establishment of a
dedicated diversity and inclusion section, the Group
has also set up a strong implementation structure,and I have high expectations regarding our progressin this area going forward. Although the ratio of
women among new graduate hires has risen to
46%,* it is the unfortunate truth that in Japanesesociety, the burdens of childbirth and childrearing
still tend to fall mostly on women. Against thisbackground, it is important to consider how we canfoster women’s ambition and capabilities, and how
we can create a work environment which enables
women to succeed as core elements of a company
on the same level as men.
*As of April 2023

Increasing profitability

Thorough dialogue with investors is
key to improving return on capital andcorporate value—Please share your ideas for how to improve ourunder 1.0 price to book ratio (PBR) and othermeasures to increase profitability.

Hoshino As I discussed shortly before, theGroup is revising its business portfolio per its
financial capital strategy, and we are currently
making selections and engaging in theconcentration of investments and businesses.
I believe it’s important not to get too caught up in
the 1.0 benchmark and end up taking short-term
measures such as share buybacks. Providing
thorough explanations to investors with regard to
our growth investments to increase profitability
and corporate value while taking into accountcapital cost and the returns investors expect will
improve shareholder assessment in the medium
and long term and serve as a true means ofincreasing PBR beyond 1.0.
Arai With respect to that point, I think thatproviding slightly more frequent information
disclosure to investors would also be effective.
For example, when we announced positive
performance in the fiscal 2022 financial results,
stock prices jumped and PBR improved. We had
predicted these results to a certain extent during
the period and had communicated them throughour information disclosure, but this fact was onlyreflected in stock prices after the financial results
were released. It seems there may be some room
for improvement in how we convey information
to investors.

49
Medium- to Long-term Growth Strategy

Outside Director Discussion

I believe “experiential” dialogue could be
one highly effective means of communication.
When I received on-site briefings of the facilities
at Kudan-Kaikan Terrace and TOKYO PORTCITY
TAKESHIBA, I was able to directly experience andwas impressed by their innovative ideas and thedetails put into every nook and cranny. If we wereto create more of these kinds of opportunities forinvestors, I believe it would give them a clearer
understanding of the Group’s value and would be
effective in increasing PBR.
Jozuka I also feel that we should be thinking
about effective public relations methods. For
example, we could use digital twinningtechnology to recreate real-world locations in
virtual space and display models of new facilities
in these spaces so that investors can tour andrealistically experience them as if they wereactually there.
At the same time, while PBR can’t beignored, what is crucial is that we strengthen ourearning power in the medium rather than the
short term. In that regard, I believe our strategy ofrevising our business portfolio and creating aleaner corporate body is the right way to go and I
want to see this strategy continue to be properly
implemented in the future.
Kaiami It is definitely true that it is necessary forcorporate management to be cognizant of PBR.
At the same time, however, I feel thatconcentrating on PBR to the exclusion of otheraspects is not a good idea.
From the start, Tokyu Fudosan Holdings
Corporation grew while touting the philosophy ofresolving social issues through business. Looking at
the Group’s senior housing, for example, this is abusiness that will not necessarily result in large
profits, but it contributes to the resolution of a social
issue. We must take care not to ignore this aspect inthe excessive pursuit of revenue. In turn, I think justlike everyone else has said that taking the time toemphasize the social value we provide to investors
will also lead to stock prices increasing.
Miura It is necessary to always bear PBR in
mind, but ultimately it is only one indicator.
A corporation belongs to its shareholders, but at
the same time, it must also provide value tocustomers, the local community, and a wide
variety of other stakeholders. It is essential not tofocus exclusively on PBR but rather to consider
where to position PBR as just one indicator in ourmanagement strategies aimed at achieving
sustainable growth.
Two Group policies

Balancing environmental management
and DX and turning Shibuya intoa model city for the world—Please share your expectations as well as what
areas you think need improvement with regard to
our creation of unique value throughenvironmental management and DX.
Kaiami Regarding environmental management,in addition to solar and wind power generation,
I’d also like to see offshore wind power
generation incorporated into our strategies. Also,
I feel it would be good to call a little more
attention to our effective utilization of renewableenergy in the buildings we have developed.
Miura Our Group has been relatively quick totake part in international frameworks, such as ourendorsement of the Task Force on Climate-Related
Financial Disclosures (TCFD) recommendations andRE100 participation. This is also an area we shouldemphasize more. Offshore wind power generation
was brought up, but that is a completely different
competitive environment to solar power. It is afield that is also seeing the full participation ofinternational companies, and it is crucial to have astrategy with regard to who to partner with andin what form the business should take. Caution is
also important, but it is an area that requires acompany to make bold and quick decisions.
Jozuka I think the “WE ARE GREEN” slogan is
also a great fit for our environmental
management initiatives. At the same time,
however, I feel that perhaps we should publicize
our more concrete environmental management
initiatives a little more.
Looking at solar power, I think solar power
generation on agricultural land initiatives, inwhich solar power is generated on the same land
used for agriculture, is interesting. Our Groupwould be able to use its unique strengths as a realestate developer to implement such projects. I
also feel that there is still much room for growthin the field of solar power, so I’d like to see us
engage in a close examination of this concept.
Hoshino Re-reading “WE ARE GREEN,” I feellike “WE” can mean not just the Group but all of
our stakeholders. This slogan inspires in me animage of individual people and the way they live
their lives as flowers, with each individual
sprouting new leaves and making use of theirunique characteristics to grow big and strong,embodying the “future where everyone can bethemselves and shine vigorously” we are aimingfor. I think that “WE ARE GREEN” could become awidespread catchphrase calling on everyone totake action and work together to make that kindof world a reality. Going forward, ourimplementation of not just environmental
management but DX, as well, should evolve intobusiness development which incorporates theparticipation of our stakeholders. Environmental
management is an area in which it is easy toinclude people from outside the Group, so I’d like
us to combine environmental concerns and DX as
we work to achieve management predicated on
stakeholder participation and become a widely
loved corporate group. I anticipate that as theslogan for this movement, “WE ARE GREEN” will
permeate even further and be used even more
extensively.
Arai Speaking of combining environmental
management and DX, the Tokyu Group isdeveloping a variety of facilities under the themesof work, play, and living in the Greater Shibuyaarea. Through these efforts, we have begun tocreate a world leveraging DX where theemployees who work in Shibuya’s offices, thelocal residents who visit the area as a place forrest and relaxation, and the plants and animals
which gather there all coexist in harmony. Our
Group’s initiative in the Greater Shibuya area willrealize “real estate as a service” which
incorporates DX and digitalization leveraging
renewable energy into area management, and I
expect it could well make Shibuya into a modelcity not just for Japan but also the world.
Jozuka I too feel a sense of ambition in theGroup’s business ventures and believe they havethe power to make Japan more vital. With
regard to DX, the Group’s structure for its
promotion is quite spectacular.—Centering on
Tokyu Fudosan Holdings and TFHD digital,*each company in the Group is being provided
with powerful support in their initiatives.
*A DX technology company established in 2022

50
Medium- to Long-term Growth Strategy

Outside Director Discussion

They are shown what can be possible with theuse of digital technology, and in turn, this leads
to new ideas emerging, increasing the vitality to
the entire Group. We members of the Board of
Directors are also provided with briefings on
DX. Additionally, through DX reports, the Group
provides external disclosure of its DX initiatives.
I believe that in part it is because ofefforts such as these that we were selected forthe DX Stocks 2023 list certified by the Ministryof the Economy, Trade and Industry and theTokyo Stock Exchange.
Hoshino Shibuya is regarded an internationallycompetitive city, and recently there has been an
increase in demand for office space in the area by
a great number of IT and other companies. In
terms of creating synergies between technology
companies and overseas startups, as well, Shibuya
is an optimum location. It is for these reasons that
I am expecting our Group to take on a leadershiprole in establishing styles of business that are
unique to Shibuya, and in uncovering new
business opportunities.
Miura I think that DX will only really getunderway from this point forward. Whileconventionally it has been difficult to create newservices in the real estate industry, DX is a conceptthat only truly comes into its own with thetransformation of business models, so this issomething I would definitely like to see us set oursights on.
Kaiami I feel there is also great potential for DX
in the building and condominium management
Tokyu Community engages in. I think DX canenable the creation of new business models unlike
any that have existed before, such as building
management that isn’t dependent on manpower.
Arai Earlier, I talked about my experience
touring TOKYO PORTCITY TAKESHIBA, and one of
the things I was shown was the facility’s use ofcleaning and security robots. Shifting work thatwas previously the domain of human beings to AI
and machines has the potential to eliminate labor
shortages and also enable creative community
planning. I am struck again by how closely tied DX
is to the resolution of social issues.
I shouldn’t just offer only praise and no
criticism, so if I had to give an issue we are
currently facing, it would probably be speed. The
strengths we have that separate us from otherenterprises can be even further enhanced withspeed. I’m going to be a little harsh here, but incomparison to places like the United States,
software development in Japan is quite
old-fashioned. If we could accelerate our softwaredevelopment, we should see improvements inefficiency across all of our businesses.
Growth in the medium and long term

The Group’s unique style of increasing
earning power is the key—Lastly, please share a message and youraspirations concerning the growth of Tokyu
Fudosan Holdings going forward.
Kaiami Tokyu Fudosan Holdings is an extremely
diligent company, so I haven’t really felt that I’ve
been able to contribute through my knowledge

and experience in my specialty areas of the law
and compliance. Accordingly, instead I’ve shared
my honest thoughts as an ordinary citizen andwould like to continue to contribute that way
going forward.
I became an outside director five years ago,
and in that span the atmosphere of the Board of
Directors has changed significantly. There are
more women than before; the backgrounds of themembers are more diverse; and Board meetings
have become more effective, enabling opinions to
be expressed more freely.
Arai To repeat myself, we need to increase ourearning power. Doing so will not only improve
PBR but also increase employee motivation. Above
all, I’d like us to focus on how we earn. I think it isextremely important for us to further establish ourown uniqueness while increasing our earning
power at the same time.
Hoshino In the difficult times we find ourselvesin now, I believe that what a company needs isthe ability to turn issues into strengths. Facing
issues and turning them into earning power is not
something that can be achieved through ordinarymeans, which is precisely why I think we need totackle this challenge with ambition and the“challenge-oriented DNA” that is rooted so
deeply in our Group.

In implementing our environmental
management and DX initiatives, the concept of“area management”—increasing value acrossthe entirety of an area—is essential, and theextent to which we can involve the national andmunicipal governments will be key. I would liketo contribute in this area through advice on theunique thinking and requirements ofgovernment authorities.
Jozuka My specialty is diversity, and so it isthrough that field that I would like to contribute.
Through diversity, including consideration not justfor women but also for LGBTQ persons and men, I
will help realize “a future where everyone can bethemselves, and shine vigorously.” In my position
as an outside director, I would like to help support
women in the Group.
Miura In my time being involved in corporate
management, I have come to believe strongly in
the idea that “a company is its people.” I would
like us to reexamine how we utilize the humancapital we have and what kind of human capitalwe accept and cultivate, including in the area of
our human resources system.
In taking on new challenges, having adiverse rather than uniform group of people
increases the comprehensive strength of anorganization. Accordingly, I’d like to see us hire
not only people who got excellent grades inschool but also people with other unique anddistinctive qualities as well. In turn, I’d like tocontribute to initiatives in this area aimed atincreasing the Group’s comprehensive strength.

04
Strategy
by Business Segment
Building a solid and distinctive business portfolio

Asset-utilizing
businessHumancapital-utilizing
business

Urban Development

Property Management& Operation

Strategic Investment

Real Estate Agents

51

52
Strategy by Business Segment

Urban Development

Creating attractive communities and lifestyles

Business fields: Office buildings and commercial facilities / condominiums / rental housing (rental condominiums and student residences)

Business environment

Opportunities

Risks• Acceleration of decarbonization, diversification ofenvironmental challenges• Acceleration of digitalization• Financial and economic trends• Diversification of lifestyles• Elimination of borders between home styles, work styles, andplay styles• Growing needs to solve regional issues• Intensifying competition between the different areas in city center• Changes in office building demand due to the widespread
adoption of telework

Strengths / management resources
Ability to build unique facilities with power topromote business

Accumulated redevelopment and area
management know-how

Complex development capabilities that leverage
the strengths of a comprehensive developer

Business strategy
Strengthen redevelopment andcomplex development

In the Urban Development segment, we develop and operate officebuildings, commercial facilities, and other facilities, while also
developing condominiums and leased housing. In recent years, wehave been focusing on redevelopment projects and developing
complexes, taking advantage of our extensive experience as
a comprehensive developer. We are working to solve issues intarget areas and improve their value. We will create comfortable,
prosperous, supportive lifestyles through urban development while
taking note of changing trends, such as the decreasing birthrate
and aging population, diversification of lifestyles and workstyles,
digitalization of society, and rising environmental awareness.

Propose urban lifestyles thatenhance CX

Office building and commercial facilities business targets

FY2022

FY2025

Total relevant
floor area*1

1.60 million m2

1.75 million m2

Environmental
certifications
obtained*2

73.6%

100%

Residential business targets

FY2022

FY2025

Sales from related
projects*3 *4Approx.
¥230 billion

Approx. ¥250 billion

Profitable realestate asset scale

Approx.
¥76 billion

Approx. ¥160 billion*1. Total amount of floor space from offices and industrial facilities with which the Group is involved (before conversion to equities)*2. Office space and industrial facilities owned by Tokyu Land Corp. (floor space excluding some joint businesses)*3. Positions established as a member of area redevelopment unions or business participant in redevelopment projects*4. Cumulative total since fiscal 2021

53
Strategy by Business Segment

Urban Development

Operating revenue / operating profit(Billions of yen)

Strengthen redevelopment andcomplex development

Propose urban lifestyles thatenhance CX

We are making smooth progress on therealization of a redevelopment and complex
development approach that embodies our
vision of development that fuses together
living, work, and play. In fiscal 2023, we are due
to start work on large-scale projects, includingin the Greater Shibuya Area (see p. 11 ),which is a priority area for the Group, as well as
in other areas, such as COCONO Susukino.

Creating and showcasing new culture
through Tokyu Plaza Harajuku “Harakado”
and other projects
We are aiming to build a cycle in which diverse
creators create and showcase new culture throughborderless collaboration, thereby attracting andbringing together people who resonate with andcelebrate their work. This naturally leads to cocreation that generates the next new culture.

Operating revenue

Operating profit

384.0

346.1
58.6

325.8

316.7

51.9

52.7

41.7
PROJECT LIFE LAND SHIBUYA, a Greater Shibuya
Area project
2020

2021

2022

2023 (Plan)

Changes in average office rent*
and vacancy rate*2

Major projects (offices, commercial facilities, condominiums, etc.)

Average office rent (average ¥/month)
Vacancy rate (%, based on the number of occupancies /
offices and commercial facilities)
Tokyo business district vacancy rate (%)*3

See p. 11 for an introduction to projects in the Greater Shibuya Area

24,50026,79028,18028,220

Kudan-Kaikan Terrace
Chiyoda-ku
Office/commercial
Floor space: 68,000m2
Opened October 2020

(Rendering)(Rendering)(Rendering)

Higashigotanda 2-chome Block 3
Type 1 urban redevelopment project
Scheduled to open in fiscal 2027

JR Nishinomiya Station Southwest
Block Type 1 urban redevelopment
project
Scheduled to open in fiscal 2027

Shirokane 1-chome West Central
Block Type 1 urban redevelopment
project
Scheduled to open in fiscal 2028

1.78

1.50
0.6

0.4
2018

2019

1.3
2020

28,560

6.37

5.42

TOKYO PORTCITY TAKESHIBA
Minato-ku
Office/commercial/housing
Floor space: 201,000m2
Opened September 2020

(FY)

1

6.41

1.3
2021

1.1
2022
(FY)

Up to FY2022

FY2023

FY2024*1. Only for office buildings *2. For office buildings and commercial facilities*3. Source: Miki Shoji Co., Ltd.

FY2025 and beyond

Number of condominium units sold(opening year)
COCONO Susukino(Sapporo Susukino Ekimae Complex
Redevelopment Project)
Sapporo, Hokkaido
Hotel/commercial/cinema, etc.
Floor space: 53,000m2
Scheduled to open in Autumn 2023

The Tower Jujo
Scheduled for completion in
September 2024

(Rendering)(Rendering)

Shinjuku West Gate Redevelopment Plan
Shinjuku-ku
Office/commercial/ station facilities, etc
Scheduled for completion in fiscal 2029

(Rendering)

Project for Using Land at Tokyo
Institute of Technology’s
Tamachi Campus(tentative name)Minato-ku
Office/commercial/industryacademia-government
collaboration, etc.
Complex operatorshipscheduled to start in fiscal 2030

Number of condominium units soldAverage price per unit (Millions of yen)

2,194
1,680

1,777
60

57

2019

70

64
1,369

2020

69

2021

2022

1,218

2023 (Plan)
(FY)

54
Strategy by Business Segment

Strategic Investment

Building next-generation infrastructure

Business fields: Renewable energy power generation facilities / logistics facilities / overseas operations (North America and Asia) / investment management

Business environment

Opportunities

Risks• Acceleration of decarbonization, diversification ofenvironmental challenges• Acceleration of digitalization• Financial and economic trends• Accelerated trend toward decarbonization• Inflow of investor money reflecting growing fundmanagement needs• Growing needs for logistics facilities due to the expansion of
e-commerce (EC)• Intensifying competition over projects in the renewable energy
and logistics businesses• Political risks, and worsening of the state of affairs abroad
due to war, conflict, terrorism, etc.

Strengths / management resources
Renewable energy business with capacity togenerate more than 1 GW of power

Industry-leading REIT and assets managed
by private funds

Achievements and expertise from in-housedevelopment (overseas)

Business strategy
Expand the renewableenergy businessIn the Strategic Investment segment, we develop and improve
infrastructures supporting lifestyles, such as renewable energy
power generation facilities and logistics facilities. We also create
diverse investment opportunities by applying our real estate
investment management know-how in Japan and overseas. In
the infrastructure and industry business, we will contribute tobuilding next-generation social infrastructure by consideringchanges in energy policy and industrial structure. In our overseas
operations, centered around Asia and the United States, weare advancing business by demonstrating our presence as acomprehensive developer.

Make logistics and industrial
facilities more sophisticatedInfrastructure and industry business targets

Rated capacity*1
Amount of investment
in logistics andindustrial facilities*2

Expand areas and scaleof investment

Investment management/overseas business targets

FY2022

FY2025

Approx.
1.58 GW

2.1 GW

Approx.
¥90 billion

Approx. ¥280 billion*1. Before equity conversions*2. Cumulative total since fiscal 2021
*3. Total value from REIT and privately placed funds (unconsolidated)*4. Investment amounts calculated based on exchange rates for March 31 of each fiscal year

AUM*3

Investments in the
U.S. and Asia*2 *4

FY2022

FY2025¥1.75 trillion¥2.2 trillion

Approx.
¥60 billion

Approx. ¥150 billion

55
Strategy by Business Segment

Strategic Investment

Expand the renewableenergy businessin Yokohama through a power purchaseagreement and going forward, we plan tofurther advance our rooftop initiatives.
See p. 35

Renewable energy business list
As of March 31, 2023

Total Number of Businesses:
Rated Capacity:

89

1,577 MW

Equivalent to the energy used by approximately
736,000 regular households

CO2 emissions reduction:

1,520,000 t-CO2/year
Solar PowerWind Power
Biomass

Complete

59 (815.6MW)

In development

12 (234.1MW)

Rooftop1 ( 55.0MW)

Complete

5 (164.2MW)

In development

7 (197.6MW)

Complete

1 ( 54.5MW)

In development

4 ( 56.0MW)

Advancing the Rooftop Business(solar power generation on facility roofs)
Since fiscal 2019, we have installed solar panels
on over 900 units of former employment
incentive housing across Japan, and we havedeveloped these into a nationwide Rooftop
Business. This business supplies renewableenergy to Group-owned and private sector
facilities and also sells electricity to external
parties. In 2023, we were selected to executethe installation of solar power generationequipment for supplying power to 53 schools

ReENE LOGI'Q Kyoto Kumiyama Solar Power Plant

Make logistics and industrial
facilities more sophisticatedAdvancing LOGI’Q to the next stage
LOGI’Q Minami Ibaraki will be the largest
LOGI’Q facility to date, boasting 162,000 m2
in floor space. It will be equipped withrefrigeration and freezer compartments andlocal 5G compatible compartments, among
other features, in order to meet diverse logistics
needs. We also plan to ensure that 100% of
the energy consumed by the facility is fromrenewable sources by using clean energy directly
generated on site through rooftop solar panels,
supplemented by renewable energy supplied byGroup power plants located across Japan.

Expand areas and scaleof investment
Expanding participation in US rental
housing projects
Since establishing TLUS* in 2012, we haveparticipated in rental projects covering 4,707
rental housing units (in 21 properties) acrossthe US and approximately 64,000 m2 ofoffice space (one property), with a focus on
Los Angeles and New York. The cumulative
total of rental housing units in which we havebeen involved is 8,000 (including student
apartments). Leveraging this experience, in July
2023 we acquired a rental housing property
in Renton, a suburb of Seattle, Washington
State. This is the first fully owned asset to
be managed by the Group in the US. We are
currently working to raise the value of theproperty by renovating it in collaboration
with Hankyu Hanshin Properties USA LLC, afully-owned subsidiary of Hankyu Hanshin
Properties Corp.
* Tokyu Land US Corporation, our subsidiary in the US

Operating revenue / operating profit(Billions of yen)
Operating revenue

107.0
78.8
67.0
46.9

LOGI'Q Minami Ibaraki (scheduled for completion in fiscal 2023)

14.7

12.1

2020

2021

16.5

15.2

2022

2023 (Plan)(FY)

Number and rated power capacity of
renewable energy projects*1
1,577MW

1,041MW

1,311MW
1,143MW

819MW

2018

2019

2020

2021

2022
(FY)

*1. Figures including facilities under development and before
conversion to equities

Changes in AUM*2 (Billions of yen)
API*3

CRR*4

1,467.2

Private REITs, etc.

1,530.9

1,647.2

1,752.9

1,251.9

Rental housing for family households and smaller DINK (dualincome, no kids) households, whose members commute to a nearby
or city office area

827.6

875.4

715.5

760.2

224.2

242.5

261.5

271.6

290.2

500.5

509.2

509.2

548.0

587.3

2018

2019

2020

2021

2022

527.2

(Rendering)Operating profit(FY)*2. Assets under management *3. Activia Properties Inc.
*4. Comforia Residential REIT, Inc.

56
Strategy by Business Segment

Property Management & Operation

Providing impressive experiences to customers

Business fields: Condominium management / building and facility management / renovation construction / rental conference rooms / hotels / leisure / healthcare / greening

Business environment

Opportunities

Risks• Acceleration of decarbonization, diversification ofenvironmental challenges• Acceleration of digitalization• Financial and economic trends• Growing demand for renovations and remodeling reflecting
the social issue of aging building stock• Demand for tourism and leisure in the post-COVID-19 period• Rising labor costs and labor shortages• Fierce competition for replacement and construction orders
in the property management business

Strengths / management resources
Industry-leading number of units under management
and a wide range of management areas

Highly experienced human capital andmanagement know-how

A wealth of customer and community
touchpoints

Business strategy
Evolve a model that offers
management solutions

In the Property Management & Operation segment, we operate
a wide range of businesses that utilize customer touchpoints,
including a property management business that helps maintainand improve asset values, and a wellness business that helps
promote good health and create enriched lifestyles. We areshifting to intellectual asset-intensive businesses by taking
advantage of our cultivated know-how and accumulated
data related to real estate development, management, andoperation. We will pursue customer satisfaction by providing
customers with a safe, secure living environment and highquality hospitality while also working to maximize the value of
their assets and facilities.

Build a new wellness
business model

Property management targets

Life Time Portal*1
association function
usage rate*2

Wellness targets

FY2022

FY2025

16.9%

80%

8.4%

Average annual growth-2.4%
rate for revenue fromFY2020–2022 growth ratebuilding construction*3
15.3%

FY2022

FY2025

Number of hotel
rooms

9,232 rooms

10,000 rooms

Number ofindividuals receiving
healthcare services*42.05 million

2.24 million*1. A portal site for residents of condominiums managed by Tokyu Community Corp.
*2. Ratio for properties with secondary registration rates of management association leaders at 100%
*3. Cumulative total since fiscal 2021
*4. Total cumulative number of members registered at fitness facilities, specific health guidance instructors, WELBOX members, and cases of agent arrangements for medical examinations

57
Strategy by Business Segment

Property Management & Operation

Evolve a model that offers management solutions

Build a new wellness business model

We are adapting our operations to comply with the Condominium Management Proper Evaluation
System and the Condominium Management Plan Authorization System, which are new frameworks
started in fiscal 2022 to reflect the state of a condominium building’s management and maintenancein its market valuation. As the corporate Group with the largest number of condominium units undermanagement in the industry, we will continue working to meet the expectations of customers bycontributing to the creation of a society a healthy housing stock and by continuing to provide solutions
to the issues faced by each residents’ management association.

Average daily rates (ADRs) and revenue peravailable room (RevPAR) have recovered to prepandemic levels* due to a recovery in inbounddemand. Going forward, we will seek to capture
a greater share of domestic and inbounddemand through initiatives such as developing
condominium hotels. We are also addressing new
post-pandemic workstyles by launching corporate
training programs that can be taken during
workation stays at hotels we operate.

Ranking of condominium management companies in terms of units managed (fiscal 2022)

Units managed

501,870489,666
427,864
390,085
327,900
276,473
233,222
207,539
176,472

Tokyu Community
Nihon Housing
Daikyo Astage
Haseko Community
Mitsubishi Jisho Community
Daiwa Lifenext
Gojinsha Keikaku Kenkyusyo
Mitsui Fudosan Residential Service
Sumitomo Fudosan Tatemono Service* Tokyu Stay results as of Mar 31, 2023 (ADR: ¥12,529; RevPAR:¥10,399)0

100,000

200,000

300,000

400,000

500,000

600,000

For TOKYO PORTCITY TAKESHIBA Office Tower, which is managed and operated by Tokyu Land
Corporation, we are organizing issues that need to be addressed to achieve robot friendliness inaccordance with evaluation standards for robot friendliness levels*2. For each issue, we are currently
considering options for measures that will facilitate the introduction of robots.
Example of a demonstration experiment for avoiding collisions between people and robots at corners
Measure 2: Turning withwide turns

Operating profit

383.8

371.0 17.2

337.1
12.3

-0.1
-8.8
2020

2021

2022

2023 (Plan)(FY)

Changes in stock under management(1,000 units)

306

Announcing the results of joint research*1 on building robot-friendly environments

Measure 1: Spreadingawareness with floor stickers

351.2

525

*Source: Comprehensively Managed Unit Rankings 2022 by the Mansion Kanri Shimbun (May 25, 2023 issue)

No measures

Operating revenue

Condominium management (comprehensive management)
Condominium management (facility management)

174,931

Nomura Real Estate Partners

Operating revenue / operating profit(Billions of yen)

Measure 3: Emitting alarmsoundsHARVEST Work Style, a Tokyu Harvest Club workation project

Opening our second “In-type” location
In July 2023, we opened Tokyu Harvest Club HidaTakayama. This is our second “In-type” location,in which we convert a portion of the guest rooms
at carefully selected hotels operated by othercompanies into a members-only resort hotel.
Our first location is Tokyu Harvest Club Kyoto
Higashiyama, which opened in July 2022. We
plan to continue opening “In-type” hotels withthe aim of providing facilities that satisfy guests.

First floor lounge*1. The 2022 Innovative Robot Research and Development, Etc. Infrastructure Building Project, a subsidized project by the Ministry of Economy,
Trade and Industry being advanced by Tokyu Land Corporation, Tokyu Community Corp., SoftBank Corp., and Nikken Sekkei Ltd.
*2. Evaluation standards proposed by the above-mentioned project in fiscal 2021

2018

526

525

304

2019

314

2020

528

304

2021

525

343

2022
(FY)

Number of hotel rooms

7,451

2018

8,073

8,333

2019

2020

8,860

2021

9,232

2022
(FY)

58
Strategy by Business Segment

Real Estate Agents

Leading to a society with a healthy building stock situation

Business fields: Real estate agents (sales and leasing) / consignment sales / real estate sales / rental housing services

Business environment• Acceleration of digitalization• Financial and economic trends

Opportunities

Risks• Expansion of the existing real estate transaction market• Diversification of needs for the use of real estate,such as living in two places• Reduction of information asymmetry attributable to theprogress of digitalization• Decline in buying motivation attributable to rising house prices

Strengths / management resources
Strong brands and a wealth ofcustomer touchpoints

Extensive real estate market information andthe capacity to process that information

Capacity to provide owners with proposals
that meet diverse needs

Business strategy
Evolve the real estate brokeragebusiness model in anticipation ofchanges in the value of information
In the Real Estate Agents segment, we provide solutions related
to the use of real estate stock, such as real-estate sales agent
services, and engage in operations related to rental housing
management. We create new revenue opportunities by leading
the transformation of real estate agents through the effective
use of digital technologies and intellectual assets. We will also
play a role in realizing appealing lifestyles, a goal of the Group,and contribute to the development of a healthy society that uses
building stock effectively.

Increase the scale and improvethe efficiency of our rental
housing services

Real estate brokerage targets

Rental housing services, etc. targets

FY2022

FY2025

Number of retailtransactions

28,00038,000Wholesale revenue¥14.5 billion¥17.0 billion

FY2022

FY2025

Units undermanagement*1

182,000 units

208,000 units

Productivity*2 *3

1.01 x

1.5 x*1. Cumulative total from Tokyu Housing Lease and National Students Information Center*2. Operating profit per individual divided by labor costs per person (Cumulative total from Tokyu Housing Lease and National Students Information Center before goodwill amortization)*3. Compared to fiscal 2021

59
Strategy by Business Segment

Real Estate Agents

Evolve the real estate brokerage business model in anticipation of changes
in the value of information
Tokyu Livable has renewed its corporate branding* with the aim of becoming the industry’s leading brand.
Under its three strategies for becoming the No.1 company in the industry (raising customer appraisals,enhancing competitiveness, ensuring job satisfaction) and its three strategies for transforming the industry(add value to information, improve operational efficiency, strengthen ability to adapt to the environment), it
will continue to focus on building a foundation for growing profitability into the future.
* Including a new slogan: Connecting to solutions, connecting to the future

Brokerage transaction rankings (fiscal 2022)

Total transaction amount (Millions of yen)

1,918,415
1,821,310

Mitsui Fudosan Realty Group
Tokyu Livable
Sumitomo Real Estate Sales

1,396,127
1,060,313

Nomura Real Estate Solutions
Sumitomo Mitsui Trust Realty
Mitsubishi UFJ Real Estate Services
Mizuho Realty
Mitsubishi Real Estate Services
Sekisui House Group
Daiwa House Group566,112499,669
451,618
355,950
262,605

Operating revenue

212.3

Operating profit

263.0

234.5

278.0
34.9

33.7

26.1

18.9

2020

2021

2022

2023 (Plan)(FY)

Changes in retail
Number of transactions
Number of stores

27,65628,473203

210

197,7052,000,000

2,500,000

Incorporating AI appraisals into consultations on buying a new residential property toreplace an existing property
Tokyu Livable has been using an AI appraisal system to assess property sales values at its stores handling
real estate sales since fiscal 2022. This system has now been upgraded so that it can be used in storesthat handle new property sales, allowing the staff at these stores, who previously focused solely on sales
matters, to quickly and easily provide potential clients with valuations for their existing properties.
Same dayAppraisal

Report/proposal to customers

Price appraising AI
Customers discuss replacing existing property
with a new one and how to finance this(request appraisal)

In the rental housing service business, we plan
to raise productivity by advancing DX, including
digitalizing business processes, while also
strengthening our ability to make proposals toowners and expanding the scale of the business.
Initiatives include efforts by Tokyu Housing Leaseto introduce smart property viewings on a trial
basis and to move rental contract procedures
online, and efforts by National Students Information
Center to consolidate four of its locations in theTokyo Metropolitan area. We plan to further raise
efficiency by accelerating these initiatives.

Operating revenue / operating profit(Billions of yen)

24,554 25,413 24,660
190
187
181

0
500,000
1,000,000
1,500,000*Source: FY2022 Brokerage Transactions by Major Real Estate Companies in Shukan Jutaku (May 29, 2023 issue)

Consultation

Increase the scale and improvethe efficiency of our rental
housing services

Employee responsible for new property
sales carries out an appraisal

Employee provides customers with valuationand financing proposal

The Tokyo Dai-Ichi Branch’s Tokyo Metropolitan Area Leasing Center

Introducing a new contract scheme to makerental housing more accessible to non-Japanese
Tokyu Housing Lease has concluded a businesscollaboration agreement with Enplus Inc.
to introduce a new housing rental contractscheme specifically tailored to non-Japanese
residents. The scheme aims to capture moreof the business
opportunities
created by therecovery in
inbound demand.

2018

2019

2020

2021

2022
(FY)

Changes in rental housing units undermanagement (1,000 units)
Rental housing (Tokyu Housing Lease)
Student condominiums (National students information center)

130
107

99

93

117

44

45

48

48

2018

2019

2020

2021

52

2022
(FY)

*Figures for student condominiums as of April 1 of each fiscal year

05
Value Creation Foundation
Strengthening our management foundation toprovide crucial support for achieving GROUP VISION 2030
Sustainability Vision
We solve issues in society through our business activities andwork with stakeholders to realize a sustainable society and growth.
Sustainability Policy
We strive for environmental and economic harmony through our business activities.
We endeavor to collaborate closely with stakeholders andmaintain and strengthen relationships with them.
We pursue sound and highly transparent management andactively disclose sustainability information.

Sustainability promotion framework
We have established the Tokyu Fudosan Holdings Sustainability Committee comprising operating officers with the president andCEO as chairperson. The results of committee deliberations are reported to the Board of Directors. (See p. 80 )The Sustainability Council and Group Human Capital Council (See p. 46 ), which comprise members from each of ourbusiness companies, also hold meetings to deliberate on issues and monitor progress toward KPI targets. The outcomes arereported to the Sustainability Committee.

60

61
Value Creation Foundation

Themes of Our Efforts to Create Value (Materialities)

To realize our ideal vision, we are engaged in efforts focused around six themes (materialities) through our business activities.
These themes were chosen based on the prioritization and analysis of important social issues, and by implementing strategies in line with each theme,
we will contribute to the creation of a sustainable society.

Materiality Identification Process

Materialities

Main social issues(excerpts from the 37 items)

Step 1 Determination, integration, and consolidation of social issues

Materialities and ideal vision for 2030

• Integration and consolidation of 561 social issues into 37 items
We created a longlist of 561 social issues and then integrated andconsolidated similar and overlapping items into 37 issues• Social issue longlist inputs
Issues recognized in international frameworks (such as the SDGs,
ISO 26000, GRI Standards, and SASB), SRI ratings indexes (such as
FTSE and DJSI), analyst reports, and by the Japanese governmentand business organizations, as well as stakeholder feedback, andissues identified in trends regarding other companies and at
Group companies

Step 2 Recognition and assessment of stakeholder expectations• We held interviews with stakeholders to gauge their expectations
regarding the 37 social issues• We organized the interview feedback and the results of Step 1 toevaluate each issue in terms of significance for stakeholders• Diversification of lifestyles andnormalization of IT use• Greater demand for customer/
consumer orientation anddisclosure of information on
products and services• Growing need for therealization of a sustainable
society (addressing issues suchas disasters, resource
shortages, and population
decline)• Increases in Japan’s existing
housing and building stock
and in the number of
dilapidated and abandonedhouses• For each of the 37 social issues, we confirmed its importance foreach Group company, as well as potential risks and opportunities• We also evaluated its significance for business management inaccordance with our long-term management policy and extracted
the issues that are of the highest priority to the overall Group

Step 4 Identifying materialities, opportunities and risks• The Sustainability Committee and Group Executive Committee
assessed the identified management issues along two axes:
significance for stakeholders and significance forbusiness management• The Board of Directors designated six key issues that need to be addressed
as a priority as the themes of our efforts to create value (materialities)• We then established the correspondence between each materiality
and opportunities and risks, our ideal vision for 2030, KPIs, andSDGs targets

Lifestyle

We will help people to enjoy lives that are both physically and mentally vibrant bypromoting Lifestyle Creation 3.0, a combination of home, work and play styles.

Create communities and lifestyles that encourage well-being
Liveable City

We will realize a society where everyone can feel happy by building secure, safe andcomfortable life infrastructure and creating communities where people help each other.

Create a sustainable environment• Reform and revitalization ofregional communities• Growing seriousness ofclimate change

Step 3 Extraction of high-priority management issues

Create a variety of lifestyles

Environment

As an environmentally advanced company, we will create a carbon-free and recyclingbased society by addressing global issues such as climate change.

• Shift to sustainable energy• Growing need to create
innovation and transformbusiness models through DX• Advancement of social
diversity and the active
participation of women in theworkforce

Create value in the digital era
DX• Human resources shortages
and the growing need for
personnel development• Diversification of workstyles
and an increasing need to
improve working conditions
and environments

We will transform our business models by utilizing digital technologies to create newexperience value for customers.

Create an organizational climate under which diverse humancapital is enlivened
Human Capital• Growing importance to factor
ESG into corporate
management

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

Create governance to accelerate growth
Governance

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

SDGs targets

62
Value Creation Foundation

Overview of Sustainable Management

The Group has organized business opportunities and risks and established KPIs for each materiality toward the achievement of its ideal vision for 2030. In this way, we aim
to increase outputs and impacts on society and contribute to achieving the SDG goals.

Materialities

LifestyleLiveable City

Main opportunities• Diversification of work styles,
home styles and play styles• Fusion of all manner of lifestylescenesMain risks

Ideal vision
for 2030

Non-financial KPI• Customer satisfaction level*1
A vibrant life, both
• Mismatch to consumer needs• Declining efficiency accompanying response
physically andto segmentalized needs
mentally• Products and services that contribute to Lifestyles Creation 3.0• Increasing importance of• Declining attractiveness of some cities due to• Measures to revitalize communities
community creation
intensifying competition between cities
A society where• Growing need for disaster• Declining attractiveness of cities due toeveryone can feel
preparedness and disastercommunity decline
damage reduction
happy• Decreasing asset values due to insufficient• Strengthening building safety and security*2• Increasing awareness regarding
maintenance and management
mental and physical health issues• RE100*3 *4Social Issues

Human Capital

Governance

5.1
8.8
12.7

100 cases or more

11.3

100%

3.9
11.3
11.5

To be achieved by 2025

7.2

Outputs(Value provided
throughbusinesses)
Lifestyle Creation 3.0• A comfortable urban life
• Safe and secure housing

Less than theprevious fiscal year

6.4
12.2

(11)%

12.5

• Environmental certification acquisition*6 (e.g. CASBEE, DBJ)

100%

9.4
15.5

• Sustainable procurement (wood materials for molds)

100%

15.2

• Midori wo Tsunagu Project (area of forest protected)

3,000 ha15.2

100 cases or more

11.6
11.7

100 or more

8.2
17.16

2 times

9.1

100%

4.4

• Ratio of employees who undergo physical examinations

100%

8.5

• Ratio of women among new graduate hires

50%

5.5

An organizational • Ratio of female managers (ensuring the diversity of core human capital)climate forcontinuously• Ratio of childcare leave taken by male employees
creating
innovation• Deepening understanding of DE&I (percentage of employees
who took an e-learning course)

20% or more

5.5

• Urban resilience

100%

5.1
5.5

• Development of local
economies

100%

10.3

100%

10.3

• Preservation of the global
environment

300 cases or more

12.6

• Improvement of effectiveness of the Board of Directors(third party evaluation)

100%

16.6

• Adherence to the compliance code of conduct

100%

16.5

• Water usage
A carbon-freesociety and arecycling-basedsociety• Waste volume (compared with FY2019)• Respect for human rights in the supply chain(implementation of due diligence related to forced laborand child labor)• Strengthening relationships withstakeholders by improving• Increasing cost of fund procurementtransparency• Decline in confidence due to legal violations• Increasing funding from ESG
investors

100 cases or more

Value we provide

7.2• Number of initiatives utilizing digital technology• Increasing importance of utilizing • Declining position of real experiences due to Create customer’senhancement of virtual experiences
customer contact points
new experience• Improving scalability of services • Appearance of disruptors to existing• DX investment amount (compared with FY2021)*7
value
businesses
provided• Acquisition of IT passports*4• Increasing opportunities to secure • Intensifying competition and increasing costsin the human capital market
diverse human capital• Emergence of innovation due to • Declining reputation due to the occurrenceof human rights issues
diversification

10.3

FY2030 targets

13.1

emissions (compared with FY2019) (SBT certification*5 )• Environmental efforts through businessDX

90% or moreFinancial KPI(46.2)%• CO2

Environment

SDGs
targets

60% or more

• Percentage of renewable energy power usage• Growing need to respond to a
• Escalation of climate change and natural
decarbonized and recycling-based
disasterssociety• Increasing costs due to environmental• Increasing funding from ESG
restrictions, etc.
investors

FY2030 targets• Engagement with shareholders and investors
Sustainableimprovement ofcorporate value

Referenceindicators
ROE
10% or more

• Mental and physicalhealth• Fulfilling leisure time
• Supply of clean energy

ROA
5% or more

Impacts(Social value)

D/E ratio
2.0 times or lessA future where everyone
can be themselves, andshine vigorously

Operating profit¥150 billion or
more• Improvements to qualityof life

Net profit*8¥75 billion or
more• Creation of cooperative
communities• Achieving the creation ofa healthy society• Creation of a society withrespect for diversity*1. Tokyu Cosmos Members Club questionnaire survey *2. Support for people who have difficulty returning home in the event of a disaster in a large, non-residential building, etc. *3. An international collaborative initiative with the goal of companies procuring 100% of the electric power consumed by theirbusiness activities from renewable energy sources. *4. Tokyu Land Corporation *5. An abbreviation of Science Based Targets. These are medium- to long-term targets for the reduction of greenhouse gases that have been formulated based on scientific research *6. Covers large-scale non-residential owned
properties (total floor area of at least 10,000 m2). Excludes some properties, such as joint ventures. *7. Infrastructure-related costs incurred since fiscal 2021, including the new development and introduction of apps and zero trust measures *8. Profit attributable to owners of parent

63
Value Creation Foundation

Financial and Non-Financial KPI Targets and Results

Figures for fiscal 2022 include data that has yet to undergo third-party verification and is therefore subject to change.

Category

Materiality

KPI

FY2030 target

FY2025 target

FY2022 results

ROE

10% or more

9%

7.3%

ROA
Financial
targets

5% or more

4%

4.1%

2.0 times or less

2.2 times or less

2.2 times

Operating profit¥150 billion or more¥120 billion¥110.4 billion

Net profit*1¥75 billion or more

¥65 billion¥48.2 billion

D/E ratio

Finance2Society

Create a variety of lifestyles

Society

Create communities and lifestyles thatencourage well-being

90% or more

90% or more

94.3%

Products and services that contribute to Lifestyles Creation 3.0 (cumulative)

100 cases or more

50 cases or more

35 cases

Measures to revitalize communities (cumulative)

100 cases or more

50 cases or more

38 cases

100%

100%

100%

100%

100%

Customer satisfaction level*

Strengthening building safety and security*3
4

RE100 to be achieved by 2025*

Percentage of renewable energy power usage
Scope 1 and 2

Create a sustainable environmentNon-financial
targets

Society

Create value in the digital era(46.2)% (SBT certification)*5

FY2023 (50)%*6(50.6)%(10.9)%

Less than the previous fiscal year

Less than the previous fiscal year

+18.7%

Waste volume (compared with FY2019)

(11)%

(6)%

(22.5)%

Environmental certification acquisition*7 (e.g., CASBEE, DBJ)

100%

70%

48.7%

Sustainable procurement (wood materials for molds)

100%

30%

2.8%

Midori wo Tsunagu Project (area of forest protected)

3,000 ha2,400 ha2,086 haEnvironmental efforts through business (cumulative)

100 cases or more

50 cases or more

36 cases

Water use

100 or more

50 or more

43

DX investment amount (compared with FY2021)*8

2 times

1.5 times

2.7 times

Acquisition of IT passports*4

100%

80%

71.4%

Ratio of employees who undergo physical examinations

100%

100%

100%

Ratio of women among new graduate hires

50%

42%

40.1%

Ratio of female managers (ensuring the diversity of core human capital)

20% or more

9%

7.3%

Ratio of childcare leave taken by male employees
Create an organizational climate underwhich diverse human capital is enlivened
Deepening understanding of DE&I (percentage of employees who took
an e-learning course)

100%

100%

65.2%

100%

100%

86.5%

100%

50%

72.7%

Respect for human rights in the supply chain (implementation of due
diligence related to forced labor and child labor)
Engagement with shareholders and investors
Governance

52.9%(46.2)% (SBT certification)

Scope 3(Categories 1, 2, and 11)

Number of initiatives utilizing digital technology (cumulative)
Society

65%*6
Qualitative target:
Collaborative initiatives with partners(construction companies, etc.)

CO2 emissions (compared with FY2019)

Environment

66.3%

60% or more*5

Create governance to accelerate growth

300 cases or more

290 cases or more

284 cases

Improvement of effectiveness of the Board of Directors(third party evaluation)

100%

100%

100%

Adherence to the compliance code of conduct

100%

100%

98.7%

*1. Profit attributable to owners of parent *2. Tokyu Cosmos Members Club questionnaire survey *3. Support for people who have difficulty returning home in the event of a disaster in a large, non-residential building, etc. *4. Tokyu Land Corporation*5. Set at the same time as the long-term management policy (fiscal 2021) *6. Set at the same time as the medium-term management plan (fiscal 2022) *7. Covers large-scale non-residential owned properties (total floor area of at least 10,000 m2). Excludes some properties, such as joint ventures*8. Infrastructure-related costs incurred since fiscal 2021, including the new development and introduction of apps and zero trust measures. The result for fiscal 2021 is ¥1.4 billion

Value Creation Foundation

ction for all sta
satisfa
keh
old
sing
ers
rea
Inc

Communication With Stakeholders

Customers

Increasing corporate value by encouraging thorough dialogue

Shareholders
Group
and
employees
investors Future society

We believe that corporate value is the sum total of the levels of satisfaction of all of our stakeholders, so we are working to raise
stakeholder satisfaction. We are looking to make improvements and create new value by engaging in thorough dialogue through ourbusiness activities, so that we can fulfill our responsibilities to each stakeholder and foster the sustainable society of the future.
Customers

Group employees

Localcommunities

Business
partners

Business partners

Always coming face-to-face with customers,
we will provide value that will ensure that
we continue to be chosen by them

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

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

We operate Tokyu Cosmos Members Club, which comprises approximately
130,000 customers who buy our products and use our services. We also
maintain daily contact with customers through our services and provide
additional perks with purchases
in order to encourage contract
renewals. Other initiatives
include conducting
questionnaire surveys during
sales activities, issuing a freenewspaper to office building
tenants, and carrying out
environmental awarenessA special performance by cast members of theraising activities such as
opera La Traviata held exclusively for Tokyu
encouraging electricity andCosmos Members Club members on July 5, 2023
water saving.
(10 pairs of tickets were issued)

Under our Group human capital strategy, each of our Group companies isestablishing its own frameworks and systems that will enable diverse
human capital to thrive and each employee to fully demonstrate theirindividual capabilities. We carry out monitoring, including regular worker
engagement surveys, to ensure
workplaces are psychologically safe andwe also work to foster innovative
organizational cultures and work
environments where everyone can work
actively through initiatives that include
providing an e-learning program
covering diversity, equity, and inclusion
Screenshot from Approach to Diversity(DE&I) and setting KPI targets for
and Inclusion, an e-learning program for
matters related to physical andGroup employees taught by Keikomental health.
HamadaWe collaborate with business partners in order to achieve mutual growthand enhanced corporate value. We engage with these partners through ourbusiness activities,
including holding joint
safety events withpartner companies,
informing suppliers of
our sustainableprocurement policies,and conducting
exchanges of
information concerningsocial issues such as
An engagement event with Toda Corporation
human rights and theenvironment.

Local communities

Shareholders and investors

Future society

We will contribute to a sustainable society by initiatives
to coexist with communities and revitalize them

We will maximize shareholder value throughsustainable growth

We aspire to pass on to future generations a world
full of hope with a rich environment

We work to revitalize communities and make them sustainable througharea management activities such as conducting cleaning events and disaster
preparation training, and dispatching instructors for special lessons atelementary schools. We
also attend local council
meetings and work tosolve local issues throughour business so that we
can contribute to raising
the value of and creating
economic benefits foreach area.

Our president and the officers and employees responsible for IR activities
conduct individual meetings with shareholders and investors and we also
regularly hold financial results presentations for institutional investors andanalysts and briefings for individual investors.
In addition to this, we have set engagement with shareholders andinvestors as a KPI (fiscal 2022 result: 284 cases; fiscal 2025 target: 290 cases
or more). Furthermore, we regularly present reports on the opinions andconcerns we receive from shareholders and investors through thisengagement at meetings attended by senior management members, sothat they can be used to improve management in a way that leads to themedium- to long-term growth of corporate value.

We strive to engage with the generations that will shoulder the sustainablegrowth of the Group and society in the future. Efforts include measures by
each Group company to support young employees, the Student Mirai
Community Project, which is a joint project with Kyoto City in which we
work with students to realize future-oriented community development
through workshops onsocial issues, andvarious activities by the
National Student
Information Center thatprovide careerdevelopment support
for students.
The Student Mirai Community Project website

A cleaning activity in Shibuya

For details, see the project’s website(only in Japanese)64

65
Value Creation Foundation

Environment

Promoting Environmental Management

Various initiatives addressing our three priority issues
We are promoting environmental management as a Group-wide policy under our Environmental Vision. These efforts are focused on the three priority issues related to the environment that are stated in our mediumterm management plan, namely decarbonized society, recycling-based society, and biodiversity.
We are engaged in a wide range of business areas, including real estate development and building management and operation, and we have business sites in many different regions. This enables us to solve
environmental issues through intra-Group collaboration and to nurture regional environments.
We are also proposing environmental value that appeals to customers’ sensitivities through greening efforts and environmental events.

Environmental Vision
Environmental philosophy
We will create value that connects cities andnature, and people with the future.
Environmental policy
We will make efforts to realize harmony
between the environment and the economy
through our business activities.
Environmental action
We will tackle five environmental issues throughthree approaches.
• Three approaches· Publicize goals and implement action· Endeavor to implement progressive activities· Conduct community-based activities incollaboration with local people• Five environmental issues· Climate change· Biodiversity· Pollution and resources· Water use· Supply chains

Decarbonized society• Achieve RE100, introduce internalcarbon pricing (ICP)• Introduce ZEB/ZEH, acquire
environmental certification• Engage renewable energy, energy
saving, and energy creation

Achieving decarbonization withenvironmental business as a strength
We will aim to achieve CO2 emissions reduction
targets and advance environmentally friendly
urban development by leveraging our strengths
as the operator of a renewable energy business.
• Achieving Scope 1 and 2 targets aheadof schedule
In 2021, we became the first development company
in Japan to have our CO2 emission reduction targets
approved as 1.5°C-aligned SBT. Through steadydecarbonization efforts, we have achieved thefollowing Scope 1 and 2 CO2 emission reduction
targets.
Target: 50% reduction (compared to fiscal 2019 levels)by fiscal 2023
Fiscal 2022 result: 50.6% reduction
Target: Become carbon negative by fiscal 2025
Achieved in fiscal 2021 and 2022

See p. 67

Creating Cities Co-exisiting with Nature.
Creating a Future for People.

1998: Basic environmental philosophy formulated• Internal carbon pricing (ICP)
In fiscal 2021, we introduced an ICP scheme inaccordance with the TCFD Recommendations. In
fiscal 2022, we started providing visualizations of
the scheme as a presentation item for Executive
Committee meetings.

• Efforts to achieve RE100
In 2019, Tokyu Land Corporation became the firstcompany in the real estate industry to join the
RE100*1 initiative. In December 2022, it also became
the first company in Japan to ensure 100% of theelectricity used at the 244 facilities it owns, including
office buildings and commercial facilities, comes fromrenewable sources*2. This means that it has fulfilled
the RE100 goal and contributed to reducing CO2
emissions by 156,000 tons per year, equivalent to theemissions generated by approximately 80,000
regular households.
• Participation in the GX League
We participate in the GX League, an initiative led by
Japan’s Ministry of Economy, Trade and Industry. In
fiscal 2021, Tokyo Land Corporation endorsed theleague’s basic concept and when full-scale operation
began in April 2023, leadership of the Group’s efforts
was switched to Tokyu Fudosan Holdings. Together
with other participating companies, we will aim toprovide value by transforming
social structures with a view toachieving carbon neutrality.

• Developing buildings with high environmental
performance
We are enhancing the environmental performanceof the buildings we develop to contribute todecarbonization and meet the expectations ofstakeholders.
Environmental certification acquisition*3 targets
and results
We are working to raise the percentage of buildings we
operate that have acquired environmental certificationsuch as CASBEE and DBJ Green Building Certification.
FY2030

FY2025

FY2022

100%

70%

48.7%

ZEB/ZEH level*4 targets and results
We are also advancing decarbonization by introducing
initiatives concerning net zero energy buildings (ZEB)
and net zero energy houses (ZEH). Going forward,these initiatives will be introduced into building
development, including the new construction ofresidences and office buildings, in order to reduce theamount of energy used by these buildings.
FY2030

FY2025

FY2022

100%

Approx. 50%

25%

Topics Planting sweet potatoes on office building roofs to save energy consumption
and create engagement events
At the Unosawa Tokyu Building (Shibuya, Tokyo), we have planted sweet potato plants
to green the areas around external air conditioning units, establishing a potato-based
external machinery greening system. This system reduces the amount of electricity
consumed by the air conditioning system, as transpiration by the plant leaves and theshade they create lowers the air temperature around the units. This saves energy in a
way that does not burden building tenants and trials showed a reduction in electricity
consumption of around 10 to 15%. It also creates opportunities to engage withtenants through sweet potato harvesting events.

The Unosawa Tokyu Building’s
potato-based greening system

2011: Renamed as the Environmental Vision*1. Based on the industry classifications used for companies listed on the First Section of the Tokyo Stock Exchange at the time *2. Excludes financial institutions*3. Covers large-scale non-residential owned properties (total floor area of at least 10,000 m2). Excludes some properties, such as joint ventures.
*4. Percentage of Tokyu Land Corporation’s facilities, including condominiums and offices, with building performance that meets or exceeds ZEB/ZEH Oriented levels (as of commencement of construction work)

66
Value Creation Foundation

Environment

Promoting Environmental Management

Various initiatives addressing our three priority issues

Recycling-based society

Topics• Reduce waste generation and water usage

Renovating company-owned housing asurban rental residences• Utilize stock• Advance projects that coexist with local
communities and the environment

Helping to create a recycling-based
business cycle and sustainablelocal communities
We are aiming to reduce environmental
footprints and realize local recycling-based
communities by using resources effectively in all
our businesses.
• Building a circular economy
We aim to create attractive facilities with a greaterawareness of resource recycling by incorporating
resource-saving and reuse into plans. These efforts
include using eco-friendly construction materials
during construction and regenerative architecture, as
well as installing equipment and facilities that curb
water use. We are also focusing on extending theservice life of buildings through high-quality building
management and renovations while encouraging theeffective reuse of waste at facilities we operate.
• Realizing regional revitalization throughcooperation with regional communities andlocal governments
We will contribute to the revitalization of regions
though our business to build a sustainable, recycling
and coexistence-oriented society.

Biodiversity

In September 2022, work was completed on COMFORIA
Takashimadaira, a rental condominium building that was
Tokyu Land Corporation’s first renovation of an existingbuilding. The project reused the structural frame of the
27-year-old building owned by the company for housing
employees, while thinned timber and waste wood fromGroup-owned forests were used for the interiors andcommunal spaces. Other initiatives involving the building
include a composting scheme to reduce food waste,with the compost being used as fertilizer for a communal
vegetable garden.
As a result of the improved insulation performanceprovided by the refitted insulation, the building
has received BELS certification*1, which is rare forrenovated buildings.

“Upcycling lifestyles,”the concept behind
COMFORIA
Takashimadaira

CHOICE—Large-scale renovation products
Tokyu Community Corp. is working toward the creationof a society with a healthy housing stock through thedevelopment of CHOICE, buildings with long warranty
periods that enable an extension of the period between
large-scale renovations of a condominium from theprevious 12 years to a maximum of 18 years. Thesebuildings employ creative measures in areas suchas work specifications and methods to extend thewarranty period for building exterior work by 1.5 to
2 times, contributing to a long-term reduction in thenumber of times work is required, as well as overall
construction costs.

• Plant greenery in urban areas andperform long-term upkeep andmaintenance• Conserve and utilize forests• Practice sustainable procurement

Contributing to the preservation ofregional ecosystems by utilizing thecharacteristics of cities and regions
We are working to preserve ecosystems inregions where we conduct business by utilizing
local characteristics.
• Contributing to becoming nature positive
We are advancing urban development that is
considerate of both people and nature, such asbuilding an ecological network in the Greater Shibuyaarea. Also, in our nationwide leisure business, weare developing leisure facilities that are in harmony
with the local environment, including carrying out
conservation activities and ecosystem surveys offorests and oceans in accordance with regional
characteristics.
• Formulating related policies andadvancing initiatives
We formulate policies and manuals, such as a
Biodiversity Policy and a Sustainable Procurement
Policy and collaborate with stakeholders to reduce
the global environmental impact of our entire supply
chain. We have also joined the 30by30 Alliance for
Biodiversity*2 and the TNFD Forum*3. In August 2023,
we disclosed a report under
the TNFD framework.

TopicsJ-Credit certification
Tokyu Resort Town Tateshina is advancing the
MORIGURASHI® concept of local sustainable recycling.
As part of this, it is encouraging the growth of local
forest through activities such as proper tree thinning. It
has received J-Credit*4 certification for the 50 tons of
CO2 emissions per year that are absorbed by the forest.

Working with communities tosupport biodiversity
At Hyatt Regency Seragaki Island Okinawa, weare cooperating with a local university to nurtureand conserve clownfish populations. We are also
contributing to efforts to protect coral reefs as partof Onna Village’s marine conservation efforts bysponsoring the Honey & Coral Project, an initiativethat aims to solve the issue of red soil sediment fromagricultural land being washed into the sea by rainfall,
which is having a negative impact on the reefs andruining ocean views.

Conserving rhododendron quinquefolium
Nasu Mt. Jeans, which is operated by Tokyu Resorts& Stays, is located in Japan’s largest habitat for
rhododendron quinquefolium, a native azalea species.
It is helping these flowers thrive by collaborating witha local volunteer group on activities such as removing
shrubbery that is blocking sunlight.

To our TNFD Report*1. A system operated by the Association for Evaluating and Labeling Housing Performance that evaluates and certifies the energy saving performance (energy consumption) of buildings*2. An alliance that aims to conserve or protect 30% of Japan’s land and sea areas by 2030 in order to achieve the Ministry of the Environment’s goal of stemming the destruction of biodiversity and moving toward its recovery by 2030
*3. An international organization that acts as a stakeholder providing specialist knowledge to support discussion related to the Taskforce on Nature-related Financial Disclosures (TNFD) in order to build a framework for corporate risk management and disclosure concerning nature*4. Credits certifying the amount of greenhouse gas emissions (such as CO2) reduced or absorbed by an initiative, issued under the J-Credit Scheme operated by Japan’s Ministry of Economy, Trade and Industry, Ministry of the Environment, and Ministry of Agriculture, Forestry and Fisheries

67
Value Creation Foundation

Environment

Addressing Climate Change

Initiatives concerning the Task Force on Climate-related Financial Disclosures (TCFD)
Climate change presents a grave global risk, and we recognize it as an important management issue that could have a significant impact on the Group’s business. We are tackling this issue sincerely and looking tocontribute to its solution by advancing various climate change-related measures and actively disclosing information based on the TCFD recommendations.

Disclosure based on the TCFD
recommendations
Under the Group’s Environmental Philosophy(now referred to as our Environmental Vision)*1
formulated in 1998, we have been working toharmonize the environment and the economy
through business activities. Additionally, climatechange has become an urgent global issue, so
we have set achieving the 1.5˚C-aligned SBT byfiscal 2030 and net zero emissions by 2050 asclimate change-related targets, while we are
implementing various initiatives based on the
TCFD recommendations.
While climate change does pose arisk to the Group’s business activities, werecognize that it also presents new business
opportunities. Understanding the importanceof climate-related financial information
disclosure, in March 2019 we endorsed the
TCFD recommendations and joined the TCFD
Consortium, an international organization that
discusses matters related to TCFD engagement.
In accordance with the TCFD recommendations, we are advancing measures for each of its
thematic areas, namely governance, strategy,
risk management, and metrics and targets.
*1. Name changed to Environmental Vision in 2011
*2. Set at the same time as the medium-term management
plan (2022)*3. Our SBT-approved reduction targets cover categories 1, 2,
and 11*4. Set at the same time as the long-term vision (2021)

Category

Group initiatives

Governance• The Sustainability Committee, which is chaired by the President and Representative Director, deliberates on important matters related
to climate change and reports the results to the Board of Directors.

Strategy• In each business of Urban Development, Leisure, Residential, and Renewable Energy, risks and opportunities in the medium-term(2030) and long-term (2050) are assessed based on three scenarios, 1.5°C, 3°C and 4°C.
• We are promoting ZEB/ZEH, expanding the renewable energy business, and implementing green financing among other initiatives

Risk
management• 2030 KPIs for climate change have been set as material issues in the long-term management policy, and their progress is managed by
the Sustainability Committee.
• We recognize climate change as a risk of high importance and have integrated it into our Group-wide risk management activities.

Metrics andtargets• For greenhouse gas (GHG) emissions, we have acquired SBT approval for the 1.5°C level as a fiscal 2030 target and declared that wewill achieve net zero emissions internally and across our supply chain by 2050.
• Tokyu Land Corporation has made an RE100 declaration and aims to achieve 100% renewable energy in 2022 ahead of schedule.
• Reduction in water usage and waste, and the acquisition of environmental certifications for buildings and the area of forests that we
preserve have been set as KPI targets.

For details, see our website

Climate change-related targets

2022

FY2023

FY2025

FY20302050

Carbon negative
Achieve
RE100 targets(Tokyu Land
Corporation)

CLEAR

Completedswitch to 100%
renewable energy
in December 2022

Scope 1 and 2(Internal)• Reduce CO2
emissions by 50%
or more*2

CLEAR

FY2022 targets
achieved

CO2 Emissions

Reduction contributions
through the creation ofrenewable energy, etc.

Scope3 (Supply chains)* 3• Collaborative efforts with partners(construction companies, etc.)• Provide decarbonization value to customers

CLEAR

Achieved carbon negative status
in FY2021 and 2022

Achieve the 1.5°C-aligned SBT• CO2 emissions reduction of 46.2%(compared with FY2019)*4

Net zeroemissions• Net zero CO 2
emissions

68
Value Creation Foundation

Environment

Addressing Climate Change

Initiatives concerning the Task Force on Climate-related Financial Disclosures (TCFD)

Priority climate-related issues
We recognize the following climate-related issues
as being particularly material to the Group
Category

Transition
risks

Type

Material issues

Current
regulation

Energy conservation
reporting requirement,
energy efficient building
standards

Emerging
regulation

More stringent GHG
emission reduction
regulations, carbon
taxation

Technology

Increase in cost for ZEB / ZEH
construction / renovation

Legal cost

Credit purchase under
the Tokyo Cap-andTrade Program

MarketDelayed response to
price trends reflecting
environmental value,
increasing energy costs

Reputation

Changing customer /investor behavior

AcuteIntensified extreme
weather events

Chronic

Rising temperatures / sealevelsResource
efficiency

Transition to highefficiency buildings,
recycling

EnergysourceWider use of renewableenergy sources,
government subsidies

Physical risks

Opportunities Products /services

Expansion of low carbon
products / services

MarketUtilization of ESG
finance

Resilience

Energy efficientrenovations of operating
assets, BCP compliance

Major
impactScenario analysis overview
In each of our four business units (Urban
Development, Leisure, Residential, andRenewable Energy), we carry out scenario
analysis that assesses both medium-term(2030) and long-term (2050) climate changerelated risks and opportunities, and theresults are reflected in business strategy. This
analysis references the scenarios proposed
Excerpt
See website for details• Transition risks
Policy and legal,
technology, markets,
reputation• Opportunities
Energy sources,
products andservices, market• Physical risks
Acute,
Chronic• Opportunities
Resilienceby the International Energy Agency (IEA) andIntergovernmental Panel on Climate Change(IPCC) for three possibilities: a temperature riseof 1.5°C (successful transition to a decarbonizedsociety), 3°C (each country meets its individual
targets) and 4°C (expansion of governments,
technologies, and markets, etc. as an extensionof current trends).

Businesses covered by scenario analysis
2018:
Urban Development (medium-term), Leisure (long-term)
2020:
Urban Development, Leisure, Residential and Renewable
Energy (medium- and long-term for all four businesses)
2023:
Urban Development, Leisure, Residential and Renewable
Energy (medium- and long-term for all four businesses)

1.5°C

3°C

4°C

Risks and opportunities / financial impact• Financial impact is considerable in the medium
term due to carbon pricing and ZEB/ZEH
compliance costs, but in the long term, ZEB
conversion will be completed, securing acompetitive advantage and increasing
rental income.
• Demand for renewable electricity grows.

Risks and opportunities / financial impact• In the medium term, ZEB/ZEH conversion is lesspronounced and has less financial impact thanin the 1.5°C scenario, but the impact of ZEB/ZEH conversion continues to increase in thelong-term.
• Demand for tenant offices shrinks due to the
spread of remote work.
• Demand for renewable electricity grows.

Risks and opportunities / financial impact• The effects of climate change are limited in
the medium term, but in the long term, theintensification of natural disasters and risingtemperatures have a considerable financial impact• Higher temperatures increase construction
costs and air conditioning costs during
operating hours. Demand for high-efficiency
housing grows.
• Demand for tenant offices shrinks due to the
spread of remote work.
• Policy support for renewable electricity isfeeble, and market trends are uncertain.

Strategy• Expand business in response to increasing
demand for renewable electricity. Leisurebusiness to utilize local natural energy.
• Promote conversion of new buildings to ZEB/ZEH and upgrades of equipment at existing
operating facilities. Differentiate through theearly introduction of renewable electricity.

Strategy• Expand business in response to increasing
demand for renewable electricity. Leisurebusiness to utilize local natural energy.
• Each business differentiates in the same way asin the 1.5°C scenario.
• Expand satellite offices in anticipation of the
spread of remote working.

Risks and opportunities / financial impact• In the long term, natural disasters due to extreme
weather events will increase moderately, but thefinancial impact will be low.

Risks and opportunities / financial impact• Climate change progresses faster and has
a greater financial impact than in the
1.5°C scenario.

Strategy• Differentiate by carefully selecting building
locations and strengthen BCP/LCP throughcollaboration with tenants and residents.

Strategy• Each business differentiates in the same way asin the 1.5°C scenario.
• Leisure business to concentrate investment inhigh-latitude ski resorts and use heat-tolerant
turf at managed golf courses to differentiate
from competing facilities.

Strategy• Expand business in response to increasing
demand for renewable electricity.
• Each business differentiates in the same way
as in the 3°C scenario, including measures for
mitigating the effects of rising temperatures.
• Leisure business to offer new resort lifestyles,
such as workations.
Risks and opportunities / financial impact• In the long term, the impact of the rise in
sea levels is greater than in the 3°C scenario.
Drastic increase in damage to facilities due tonatural disasters.
Strategy• Each business differentiates in the same way asin the 3°C scenario.
• Renewable energy business to maintain power
generation efficiency by installing storage batteries
and focus on facilities adapted for climate change.

69
Value Creation Foundation

Environment

Addressing Climate Change

Initiatives concerning the Task Force on Climate-related Financial Disclosures (TCFD)

Response in terms of business strategy
Our business strategies in response to climate change risks and opportunities are as follows.
Category

Impact and response

Products andservices

Mitigation measures: We are enhancing the energy efficient performance of buildings, promoting ZEB/
ZEH, and expanding and developing the ReENE renewable energy business.
Adaptation measure: We are strengthening BCP at facilities under management.

Supply and value
chains

Upstream: We are incorporating climate change into the Sustainable Procurement Policy and havestarted discussions with major construction companies concerning low-carbon construction
processes. We are also participating in the Real Estate Companies Association of Japan’s
efforts to formulate a manual for calculating GHG emissions generated during construction.
Downstream: We are ensuring condominiums and rental housing meet ZEH standards and promoting
the introduction of renewable energy.

R&D investment

We are responding to technological innovation by advancing progressive initiatives, including acquiring
Nearly ZEB certification for NOTIA, Tokyu Community Corp.’s technical training center

Facility operation

In response to growing demand for renewable electricity, Tokyu Land Corporation committed to the
RE100 initiative and in December 2022, it completed the switch to 100% renewable energy at its
offices and facilities.

• Promoting ZEB/ZEH
We are working to enhance the environmental performance of condominiums, offices, and other properties owned
by Tokyu Land Corporation.
ZEB/ZEH
levels

FY2030 target
100%

FY2025 target
Approx. 50%

FY2022 result
25%

ZEH levels(as ofcommencement ofconstruction work)
Environmental
certification(as ofcommencement ofconstruction work)• BRANZ condominiums
FY2025 50%
FY2030 100%

• Excludes residential properties
Only covers large-scale non-residential
owned properties

When formulating our climate changerelated strategies, we assigned each risk andopportunity a level based on the size of its
potential financial impact, as shown on theright. This information is disclosed on our
website (in the financial impact section of each
For details, see our website
scenario analysis).
CategoryHigh

10% or more of consolidated operating revenue

Medium-high 10% or more of operating revenue of a specificbusiness
Medium5 to 10% of operating revenue of a specificbusiness

Medium-low 2 to 5% of operating revenue of a specific business
Low

Less than 2% of operating revenue of a
specific business

Impact and response

Indirectcosts

After estimating increases in indirect costs associated with switching to renewable energy, such as electricity
purchase costs, in fiscal 2022, we switched to purchasing electricity for the facilities we operate from our own
renewable energy business with the aim of achieving the RE100 goal ahead of schedule.

Capitalallocation

We have positioned the growth of our renewable energy business as a climate change-related opportunity and
we are actively investing in its expansion.

Liabilities

In addition to advancing initiatives to address environmental issues, we have established a bond policy toinform bond investors of these initiatives, and after setting a target to increase the proportion of ESG bonds
within total bond issuance, we have made ESG bonds an ongoing part of our financing activities.
We are also accessing Positive Impact Finance, which is funding that is dependent on the results ofassessments of the impact of our initiatives (positive and negative) on the environment and society.

AssetsWhen carrying out portfolio management based on our long-term vision, we use environmental impact as anindicator for evaluating assets.

• Formulating a bond policy
We have formulated a policy covering the long-term issuance of ESG bonds, based on our long-term vision.

We are also strengthening engagement by setting the following new targets for each of our businesses.
Targets at formulation of
medium-term management plan

Reflection in financial plans"WE ARE GREEN" Bond Policy

Current targets

Purpose

We will obtain the comprehensive and continual understanding and approval of the Group's ESG initiatives
from bond investors and other stakeholders. We will consistently provide bond investors with opportunities
to invest in ESG bonds and will expand our financing base through these bonds.

• BRANZ condominiums: FY2023 100% (moved ahead ofschedule)• L’GENTE condominiums: FY2024 100% (scope expanded)• COMFORIA urban rental residences, Campus Village student
residences: FY2025 100% (scope expanded)

TargetRatio of ESG bonds to outstanding Group-issued bonds
End of FY2025: 50% or more
End of FY2030: 70% or more

• BRANZ condominiums: FY2023 100% (new)(all properties to acquire certification as low-carbon buildings)

Deepening
engagement

We will hold regular meetings with bond investors to inform them of the status of the Group's ESG
initiatives and report on the progress of ESG bonds, among other matters. Feedback from these meetings
will be shared with senior management and reflected in ESG initiatives.

Types ofESG bonds

Green bonds, social bonds, sustainability bonds, and sustainability-linked bonds.

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Value Creation Foundation Society

Contributing to Local Communities

Creating sustainable urban areas—
Redevelopment projects that solve community issues
We are leveraging the development capabilities and knowledge we have cultivated throughengagement in a wide range of business fields and our track record in the real estateindustry to contribute to solving the social issues facing communities through redevelopment
projects. The mission of our redevelopment business is to not only establish infrastructure,
but also advance sustainable regional development through area management, including
activities to build local communities and enliven areas. We will create comfortable,
prosperous, supportive lifestyles through urban development while taking note of changing
trends, such as the decreasing birthrate and aging population, diversification of lifestyles andworkstyles, digitalization of society, and rising environmental awareness.
Urban Core, a multi-level pedestrian space providing
direct access to Shibuya Station

Bringing the city and its people together at Shibuya Fukuras
Developing a safe, secure station area and increasing
the area’s international competitiveness
Challenges faced in the area around
Shibuya Station’s West Exit
The area around Shibuya Station’s West Exit posed
various transportation-related challenges,
including complicated transfers between eighttrain lines at six stations, insufficient barrier freeaccess to station facilities, a shortage of spaces
outside of the flow of traffic where pedestrians
can stop for a short time, and a hazardous lack ofinfrastructure for separating pedestrian walkways
from the roads servicing the bus terminal.
It also presented social issues, including
insufficient office space that is suitably equipped
for the modern business environment and a lackof tourism-support functions, such as information
provision and sightseeing guidance, despite thelarge number of visitors the area receives fromaround the world.

Aiming to strengthen the area’s functions
as a transportation hub while enhancing
comfort and resilience to disasters
We collaborated with businesses in the area toadvance a combined rail improvement and land
readjustment project that redeveloped thebuildings and surrounding area, such as station
access routes, the bus terminal, and undergroundcar parks, in a unified manner. This included
constructing Urban Core, a vertical structure thatguides foot traffic between various public
transportation facilities spread over multiple levels,
as well as a pedestrian deck, to establish athree-dimensional pedestrian network that isaligned with the topography of the area and that
improves access between the stations and thesurrounding area. We also moved the taxi stands,
access roads, and collection and delivery car parks
underground to ease road traffic congestion.
Additionally, we secured a multi-level plaza spaceon the Shibuya Fukuras side to create a spaceoutside of the flow of traffic where pedestrians©Junya Watanabe

can stop for a short time. In regards to disaster
preparation, it can also function as a temporary
shelter for people who are unable to return homeduring disasters. Through these various initiatives,
we have developed a highly convenient station
area that is safe and secure, particularly forpedestrians, as befits a major rail terminal.

ESSA, a collection and delivery car park that contributes
to easing road congestion in the area. A committee
for maintaining road environments in the area wasalso established.

Enhancing the area’s international
competitiveness as a global hub
Shibuya Fukuras addresses the shortage of officespace in the area by providing over 2,000 m2 ofoffice space per floor from floor 6 to floor 18. It isalso enhancing the international competitivenessof the Shibuya Station area through a bus
terminal that caters for shuttle bus services to
Haneda and Narita airports and a tourist support
center that will bring tourists into Shibuya after
arriving in Japan and before departing. The
building also contains a Business-Airport, amembership-based shared office facility thatoffers networking and support functions forclients, particularly content creators, and it isshibuya-san, a tourist support center containing an
art center to attract tourists to Shibuya. It provides
sightseeing guidance and also holds events.

situated next to the world-famous CÉ LA VI Tokyo
restaurant. By incorporating cultural andinformation sharing functions that can attract
tourists from all over the world, we are forming
an internationally competitive hub for creating
and showcasing culture and lifestyles.

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Value Creation Foundation Society

Contributing to Local Communities

Creating sustainable urban areas—
Redevelopment projects that solve community issues

Deepening our links to the Ofuna area
Improving built-up areas and engaging
new area management ideas
Challenges faced in the area around
Ofuna Station’s Kasama Exit
Ofuna Station is a terminal station located on theborder of Kamakura and Yokohama that services
around 190,000 passengers a day. Despite being atransportation hub that also includes a bus
terminal, the area around the station was lacking
urban infrastructure. Issues facing the area
included that the bus terminal was not big
enough to allow buses to turn around, there wasno space for taxis and cars to make pick-ups anddrop-offs, buildings and facilities had become
dilapidated, including the public bicycle parking
area, local park, and nearby wooden buildings,
and there was a lack of open public space that isessential for implementing a disaster response.
Also, under the Yokohama City Urban
Planning Master Plan, we were required toincorporate area management that facilitates
disaster response and that enlivens communities
by creating opportunities for multi-generational
exchange between diverse people, including
long-term residents, residents who moved in after
the redevelopment, and visitors to commercial
facilities.

the full opening of GRAND SHIP, a large-scalecommercial facility, and BRANZ Tower Ofuna, aresidential building. These buildings comprise an
appealing mixed-use urban development that is
considerate of the surrounding residential districts
and that breathes new life into the station area.
We built the condominium building as a
21-story vibration-dampened tower structure thathas become a new landmark for the town. We
also connected the commercial facility to thestation through a pedestrian deck to improvepedestrian mobility around the station area andstrengthened the area’s functions as a transport
hub by developing a terminal that offers better
convenience regarding buses, taxis, and cars, andrearranging bicycle parking facilities.
We also established a park and other open
public spaces within the development site toprovide space for various events and activities that

Large-scale mixed-use redevelopment
covering a 1.7-hectare area
Tokyu Land Corporation has been a partner in
redeveloping the area since 2014 and 2021 saw

Tokyu Community Corp.’s condominium management and area
management leaders at BRANZ Tower Ofuna

will facilitate area management.
Even before the project started, theredevelopment site contained many public
facilities, landowners, and other stakeholders,which gave rise to various challenges. We
established an organizational structure thatleveraged the Group’s unique value chain to findsolutions to these challenges as quickly as
possible. (Commercial consulting and project
management: Tokyu Land SC Management;
facility management: Tokyu Community; rental
asset management: Tokyu Housing Lease;residence sales: Tokyu Livable)

Holding disaster preparation drills to contribute to greater disasterawareness throughout the community

Tokyu Community’s first area management
trial as a comprehensive real estate
management company
Area management is an essential factor for
realizing dynamic communities, and Tokyu
Community Corp., the Group’s real estate
management company, practices management
that, in addition to condominium and facility
management and operation, also includes the
management of entire buildings and sites. As partof this approach, it has undertaken area
management for this project with the goal of
creating opportunities for developing a
relationship with the local community andfostering a community that is inclusive of all
stakeholders, including landowners and residents.
Tokyu Community Corp. is fully involved in

Holding events to create a lively atmosphere that brings together
the entire commercial facility

local area management, maintaining a continuouspresence at the facilities and creating
opportunities to engage management
associations and visitors. These efforts are creating
diversity and facilitating community building
activities that bring residential and commercial
tenants together in a sustainable way.

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Value Creation Foundation Society

Human Capital and Organizational Climate

Formulating and implementing three human capital strategies in coordination with management strategies
We intend to take full advantage of the Group’s comprehensive strength to advance human capital strategies based on our human capital philosophy and management strategies.

Human capital strategies

Develop people
who create value• Dissemination of Group philosophy• Development of DX talent• Human capital development based on
environmental management

Develop organizations
with diversity anda sense of unity• Empowerment of women• Empowerment of diverse human capital• Fostering of an innovative
organizational climate

Enhance motivation towork and foster an
employee-friendly work culture• Promotion of health and productivity
management• Support for diverse work styles• Improvement of employee engagement

Developing people who create value is a personnel development approach that incorporates theGroup Philosophy and our management strategies. Our long-term vision GROUP VISION 2030 sets
forth the advancement of environmental management and DX as overall Group policies aimed atbuilding a solid and distinctive business portfolio. We will work to develop human resources whoare highly-productive and widely contribute to society by pursuing the core measures ofdisseminating Group philosophy, developing DX talent, and advancing human capitaldevelopment based on environmental management, with the goal of maximizing the value
created by each individual employee.

Developing organizations with diversity and a sense of unity is an approach to fostering
workplace environments that support the Group’s value creation. To realize this value creation,
we think it will be essential to empower women, empower diverse human capital, and foster aninnovative organizational climate by advancing diversity, equity, and inclusion (DE&I) initiatives.
We are putting particular effort into empowering women, setting the targets of ensuring
women account for 50% of new graduate hires, 20% of female managers, and 20% of female
candidates for management positions by fiscal 2030. We aim to achieve these targets throughinitiatives such as career advancement systems that take childbirth and childcare leave into
account (Tokyu Land Corporation) and childcare support and partner systems that reduce theindividual burden involved in meeting targets, as well as a shift system for working on holidays
and the assignment of multiple personnel to each responsibility (Tokyu Livable, Inc.).

Enhancing motivation to work and fostering an employee-friendly work culture is an approachto building workplace environments that support the efforts of individual employees. We
recognize that ensuring the safety and health of employees is an important part of sustainablecorporate development so we are working to improve our workplace environments. We are
putting a particular focus on support for diverse work styles, and in order to enhance efficiency
and productivity and to ensure work life balances can be maintained, Tokyu Land Corporation,
Tokyu Livable, Tokyu Community, Tokyu Housing Lease, and National Students Information
Center have all introduced remote working and flextime systems (or in some cases, staggered
working hours). In this way, they are leveraging IT to realize work styles that are not constrainedby time and location, and to raise employee satisfaction.

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Value Creation Foundation Society

Human Capital and Organizational Climate

Implementing our three human capital strategies on a Group-wide basis
We are advancing distinctive initiatives to create synergies within the Group and to encourage the growth and engagement of diverse individuals.

Develop organizations with diversity and a sense of unity

Develop people who create value

Development of DX talent
FY2022 results

Empowerment of diverse human capital

Acquisition of IT passports 71%*1
Number of initiatives utilizing digital technology 43

We are working to build a foundation of DX talent byimplementing intra-Group projects to create DX modelcases and by carrying out a mix of practical andtheoretical training. In February 2022, we established
TFHD digital Inc. in order to recruit DX specialists andbuild a platform to support DX initiatives, bothGroup-wide and at each Group company. Our efforts,
including the establishment of organizations andframeworks for promoting DX and specific DX modelcases that realize synergies between existing and new
businesses, have received positive recognition and in
May 2023, we were selected as a DX Stock 2023 by The
Ministry of Economy, Trade and Industry, the Tokyo

Stock Exchange, and the Information-technology
Promotion Agency, Japan.
Our DX efforts are underpinned by initiatives thatutilize digital technology, and in fiscal 2022 we
implemented 13 of these initiatives, bringing the
cumulative total up to 43. By fiscal 2030, we aim tobe benefitting from the effects created by over 100
initiatives and Tokyu Land Corporation is targetingan IT Passport acquisition rate of 100%, covering allits employees.

Develop people who create value

Human capital development based on environmental management
Sustainable Action Awards entries 123
FY2022 results
Environmental efforts through business 36 cases
In order to advance human capital development basedon environmental management, we are working to raise
environmental awareness through e-learning programsand the Sustainable Action Awards. The Sustainable
Action Awards is an awards program that commends
specific initiatives that solve an environmental or social
issue through business activities. It was established inorder to encourage the adoption of these actions on aGroup-wide basis, eventually leading to earnings
contributions. In fiscal 2022, we received 123 entries
covering 19 Group companies, and 12 of these wererecognized as winning initiatives. We aim to continue
receiving at least 50 entries a year to achieve acumulative total of 300 by fiscal 2025. Our engagementin this area is underpinned by environmental efforts
through business, and in fiscal 2022, we
implemented 14 cases, bringing the cumulative total
up to 36. We aim to be benefitting from the effects
created by over 100 efforts by fiscal 2030.

The Sustainable Action Awards presentation ceremony

FY2022 results

Percentage of employees who took an e-learning course 86%*2

We are promoting diversity, equity, and inclusion (DE&I)
in order to foster an organizational climate in which
diverse human resources can play an active role. We haveformulated the DE&I Vision as an executive-levelcommitment, under which we provide an e-learning
course for employees. We have also set the percentage of
employees who take this course as a KPI with the targetof achieving 100% by fiscal 2030.
Tokyu Livable Staff Corporation is getting recognition
for its efforts to empower employees with disabilities,
and in February 2022, it received certification under the
Monisu Certification System, an initiative by the Ministryof Health, Labor and Welfare to encourage stable
employment for people with disabilities.

Receiving Monisu certification at Hello Work Shibuya

Develop organizations with diversity and a sense of unity

Fostering of an innovative organizational climate
Cumulative STEP proposals received 253
FY2022 results
Commercialized proposals 3*3

We established STEP as a Group co-creation-based
internal venture scheme that aims to create innovationthat transcends barriers between Group companies andpass on the Group’s challenge-oriented DNA to new
generations. The name STEP was chosen as S represents
Start, Sustainable, and Shibuya, and T represents TFHD
(Tokyu Fudosan Holdings), with the other lettersstanding for Entrepreneur Program. The scheme waslaunched in fiscal 2019 and in fiscal 2021, we established
TQConnect Corporation a company developed from an
idea submitted in the first round of proposals. We have
set the target of commercializing at least one proposal
per year up to fiscal 2025 in order to foster an innovative
organizational climate throughout the Group.

*1. Tokyu Land Corporation*2. Combined total of the five main business companies (Tokyu Land Corporation, Tokyu Community Corp., Tokyu Livable Inc., Tokyu Housing Lease Corporation, and National Students Information Center, Co., Ltd.)*3. As of March 2023

TQConnect’s president and CEO (left) and vice president (right)

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Value Creation Foundation Society

Human Capital and Organizational Climate

Implementing our three human capital strategies on a Group-wide basis

Enhance motivation to work and foster an employee-friendly work culture

Expert evaluation

Promotion of health and productivity management
FY2022 results

I expect these human capital strategies to enhance corporate value

Ratio of childcare leave taken by male employees 65%

We have positioned maintaining and improving thehealth and happiness of employees as an importantmanagement issue, and we are advancing various
initiatives that will have a positive effect on physicaland mental health. We have set the targets of having
100% of employees undergo physical examinations andstress checks, and 100% of eligible male employees takechildcare leave, and to achieve these, we are holding
seminars among other awareness raising activities.
In fiscal 2021, the ratio of childcare leave taken bymale employees at Tokyu Community Corp. was 100%.
We are working to encourage leave taking and tofoster a culture of mutual support by establishingsystems, including making the first five days of childcare
leave into paid leave and providing spousal childbirthleave that can be taken in half-day units, andthrough repeated notification using manuals.

Providing information on taking childcare leave for men
through T-Mag, the Group’s intranet site.

Enhance motivation to work and foster an employee-friendly work culture

Improvement of employee engagement
FY2022 results

Carrying out employee engagement surveys and implementing improvements

AA engagement rating

At each Group company, we carry out work
engagement surveys alongside stress checks.
Furthermore, each Group company also regularly
implements its own employee engagement survey.
Tokyu Land Corporation conducts a survey twice a year,
and the overall results are disclosed both within andoutside the company. Feedback gained from the surveys
is presented to the head of each organization andincorporated into efforts to maintain and improveengagement. In fiscal 2022, the company achieved its
fiscal 2030 target of an AA rating ahead of scheduleand going forward, it will continue working tomaintain and improve this score.

Tokyu Land Corporation’s employee
engagement score(Score)
60
BBB

AA

BBB

A

A

A

56.5

56.2

59.0

58.5

58.5

61.9

2020
H1

2020
H2

2021
H1

2021
H2

2022
H1

2022
H2

40

20

0

(FY)

Reference: Engagement rating criteria (ranking systems with 11 ratings)
Score

33

39

DD DDD
Rating

42
C

45
CC

48
CCC

52
B

55
BB

58
BBB

61
A

67
AA

AAA

Developing people, developing organizations, developing society. The word ‘develop’ is central to theGroup’s efforts to disseminate its philosophy and advance strategies, and in this philosophy and thesestrategies, we can see the Group’s strong will to ensure that social issues are addressed by not justorganizational managers, but every single individual. The Group clearly demonstrates sincerity and respect
for its founding spirit and I feel that it takes great pride in the strong, authentic approach it takes torealizing a sustainable society.
In order to create diverse value for society, it is important that all employees embrace diverse values andunderstand that they are the source that drives the creation of these diverse values. It is clear that Tokyu
Fudosan Holdings Group’s three human capital strategies are highly compatible with each other and will
strengthen the Group in a way that will help it to achieve this idea. However, these strategies are mutuallydependent on each other, so the effort and perseverance of every employee will be required to ensure that
all three are advanced without fail.
The key concepts for advancing these human capital strategies are “motivation to work” and “anemployee-friendly work culture.” Organizations will not be able to realize the strategies until they combine
the innovation derived from this motivation to work with disciplined organizational management. In
particular, an innovative organizational climate can only be fostered through diversity and unity, and the
management capabilities required to incorporate both of these opposing aspects cannot be acquired
overnight. It involves formulating specific management policies that can balance ideas such as, forexample, ensuring psychological safety while also remaining receptive to opposing ideas and criticism, or
allowing for failures while also maintaining high standards for achievement.
Also, I found it impressive that the human capital strategies directly reflect measures and KPIs forachieving human resource development based on environmental management and DX, and give clear,
specific targets for each of the KPIs. The setting of the degree of personal investment in achieving thelong-term vision of executive officers as a unique indicator communicates the Group’s desire to draw out
the motivation of each employee, even senior management members.
I think it is important that management members have clear vision of the causal relationship between
human capital investment and associated management strategies and the effects these have on financial
indicators and the enhancement of capital efficiency. They also need to beable to demonstrate a firm course of action in this regard. Human capital
strategy is the driving force behind business strategy, and I expect to see theGroup further evolve its human capital management in a way that will alsoenhance corporate value.

Satoshi Sasaki
Senior Researcher, Persol Research and Consulting Co., Ltd.
Affiliate Professor, Rikkyo University Graduate School

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Value Creation Foundation Society

Human Capital and Organizational Climate

Strategy measures and human capital KPIs
Human capital strategies

Human capital KPI• Dissemination ofGroup philosophy• Degree of personal investment in achieving thelong-term vision of executive officers at eachGroup company (extent of Group coordination)

84%(FY2022 result, covering a
total of 140 officers)

90% (FY2025)• Acquisition of IT passports*1

71% (FY2022 result)

100% (FY2030)• Number of initiatives utilizing digital technology

Cumulative total of 43(FY2022 result)

Cumulative total of at least 100(FY2030)• Sustainable Action Awards

123 entries (FY2022 result)

50 entries/year, cumulative totalof 300 (FY2025)• Environmental efforts through business

Cumulative total of 36(FY2022 result)

Cumulative total of at least
100 (FY2030)• Ratio of women among new graduate hires*2

46% (April 2023 result)

50% (April 2030)• Ratio of female managers(ensuring the diversity of core human capital)*2*3

8% (April 2023 result)

At least 20% (April 2030)• Ratio of female candidates for management positions*2*3

18% (April 2023 result)

At least 20% (April 2030)• Ratio of mid-career hires among managers*2*3

46% (April 2023 result)

50% (April 2030)• Deepening understanding of DE&I (percentage of
employees who took an e-learning course)*2

86% (FY2022 result)

100% (FY2030)• Number of proposals commercialized through STEP,
the Group’s co-creation-based internal venture scheme

Cumulative totals of 253 proposals
received, 3 commercialized(FY2022 results)

Commercialization of
1 proposal/year (FY2025)• Acquiring external knowledge and sharing
expertise within the Group

Cumulative total of 111 seminars(FY2022 result)

Hold 4 seminars/year (FY2025)

Develop people
who create value• Development of DX talent• Human capital development
based on environmental
management• Empowerment of womenDevelop organizations
with diversity
and a sense of unity• Empowerment of diverse
human capital• Fostering of an innovative
organizational climate

Enhance motivation
to work and foster
an employee-friendly
work culture

Progress

Measures• Promotion of health andproductivity management• Support for diverse
work styles• Improvement of
employee engagement(results for April 2023 are preliminary figures)

Target• Ratio of employees who undergo physical examinations*2 100% (FY2022 result)

100% (FY2030)• Ratio of employees who undergo stress checks*2

93% (FY2022 result)

100% (FY2030)• Ratio of childcare leave taken by male employees*2

65% (FY2022 result)

100% (FY2030)• Ratio of Group companies implementing a
remote working system*2

100% (FY2022 result)

100% (FY2030)• Ratio of Group companies implementing a flextime(or staggered working hours) system*2

100% (FY2022 result)

100% (FY2030)• Carrying out employee engagement surveys andimplementing improvements*1

AA engagement rating(FY2022 result)

AA engagement rating (FY2030)

Results include figures that have yet to undergo third party verification and are therefore subject to change.
*1. Tokyu Land Corporation*2. Combined total of the five main business companies (Tokyu Land Corporation, Tokyu Community Corp., Tokyu Livable Inc., Tokyu Housing Lease Corporation, and National Students Information Center, Co., Ltd.)*3. “Managers” indicates employees at the manager level or above while “candidates for management positions” indicates employees one level below manager (assistant manager or equivalent)

Outcomes

2030
Create value
for the future

Production of
personnel who arehighly-productive
and widely
contribute tosociety

Realization ofenvironments where
employees canwork with motivation
and ambition andin good physicaland mental health.

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Value Creation Foundation Society

Respect for Human Rights

Promoting due diligence internally and externally
We are practicing due diligence and working toward solutions to human rights issues in order to ensure respect for the human rights of not only Group employees,
but also people throughout our entire supply chain.

Human Rights Policy and Sustainable Procurement Policy

Priority issues and main initiatives

In December 2019, we formulated the Tokyu
Fudosan Holdings Group Human Rights Policy,
under which we carry out business activities
that fully respect human rights, together with
our suppliers, in support of international
human rights doctrines including the Universal
Declaration of Human Rights.

Our risk evaluations identified six items asimportant human rights issues. These are 1)
forced labor and child labor, 2) employment
conditions and work environments of
employees and suppliers (including migrant
workers), 3) infringement on employees’
privacy and personal information protection
rights, 4) impact of land development on local
communities (including indigenous people), 5)
safety of employees and suppliers during

Additionally, in January 2020 we formulated the
Tokyu Fudosan Holdings Group Sustainable
Procurement Policy. As a responsible corporategroup, we are implementing this policy throughout
our entire supply chain with the aim of preventing
and lessening the negative impact of our businessactivities on human rights and the environment.

Identifying and mapping human rights risks
When formulating our human rights policy, we
analyzed and evaluated risk based on thelikelihood of occurrence and severity ofpotential impact, both on a Group-wide basis
and for each business. In fiscal 2022, we revised

our evaluations in accordance with businessrestructuring and risks related to ourmaterialities, and formulated the human rights
risk map shown below.

:Employees:Customers

Severity of potential impact on human rights

Forced laborChild labor

Right tosocialsecurity:Communities

Health and safety:Suppliers

Forced laborChild labor

Foreign/migrant worker(technical intern trainee) rights
Foreign/migrant worker(technical intern trainee) rights

Health and safety
Access to remedy
Privacy and personal data protection

Privacy and personal
data protection

Fair working conditions (equal pay for equal work,
evaluation and promotion)
Decent working conditions (working hours, leave accrual)
Women's workplace rights
Rights of local and indigenous peoples

Right to an adequate standardof living
Discrimination*1

Harassment
Rights of workers with disabilities

Discrimination*2
Rights of LGBTQ+
workers

Practicing due diligence
Tokyu Land Corporation practices due diligence
toward the construction companies that are its
main business partners and important suppliers.
As part of this, our guidelines for estimates
stipulate compliance with our Human Rights
Policy and Sustainable Procurement Policy,
consideration for the human rights of foreigntechnical intern trainees, and also require that
estimates include certified wood for the woodused in concrete formwork.
We also evaluate the risk posed by eachdevelopment, and 6) infringement on the rightto access remedy.
Also, after considering the effects of ourbusiness activities on human rights, we havepositioned the sustainable procurement ofconstruction materials and the prevention offorced and child labor within the supply chain
as important issues that must be addressed as apriority. Accordingly, we have set relevant KPI
with targets for fiscal 2030 in our long-term
management policy.
partner company through sustainableprocurement surveys and provide them with
documented feedback, including proposals for
improvements. In fiscal 2022 we surveyed 184
companies and identified eight as high risk.
We are working to educate employees
within the Group through awareness raisingcontent in internal newsletters, e-learning,
and new employee training, among othermeasures. We are also establishing contact
points for consultation regarding harassment
and LGBTQ+ matters.

Human rights and sustainable procurement due diligence flow
Formulation of and commitment
to the Human Rights Policy

Formulation of and commitment to
the Sustainable Procurement Policy

Human rights risk assessments in all businesses
Questionnaire survey of suppliers (direct business partners) connected to priority issues

Engagement with suppliers

Likelihood of occurrence*1. Risk to customers: Discrimination during the provision of customer service or use of services, discriminatory depiction in advertising, etc.
*2. Risk to employees: Discrimination based on nationality, race, religion, personal beliefs, sex, age, sexual orientation, gender identity, disability, etc.

Monitoring of human rights and procurement issues and designing of grievance mechanisms(currently under consideration)

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Value Creation Foundation Society

Respect for Human Rights

Interview

Yukiyo Abiko

We talked to a representative of Tokyu Bldg. Maintenance,
a company that accepts trainees from overseas throughJapan’s Technical Intern Training Program, on the measuresthe company is advancing to ensure that it is a popular choice for trainees.

Joined the company in 2015. Assigned to hercurrent position as a living guidance counselor
to Technical Intern Training Program trainees infiscal 2017. Responsible for providing trainees
with operational training and guidance
concerning every aspect of their lives in Japan.

Respecting the human rightsof technical intern trainees from overseas

Looking after Technical Intern
Training Program trainees
Tokyu Bldg. Maintenance is engaged in providing
comprehensive building management services forproperties, particularly buildings under the
management of Tokyu Community Corp. These
services include cleaning, facility management andmaintenance, and building security. In fiscal 2017,
our building cleaning business started employing
Technical Intern Training Program trainees, ahead ofthe majority of the industry. As a result, we havereceived many enquiries from other companies inthe building cleaning business and our employees
have appeared as panelists at industry seminars.
Amid chronic shortages of cleaning staff, wedecided to take on trainees because Tokyu Land
Corporation engaged in a new large-scale
redevelopment project and we anticipated that wewould receive new orders for our services. We have
set the three goals of ensuring the consistency ofoperations, providing high-quality service, andrealizing dynamic workplaces and we are
implementing a steady practical-based training plan
for acquiring skills accordingly. We have also
Utilizing the Technical Intern Training Program
The Technical Intern Training Program aims to form
employment relationships between Japanesecompanies and intern trainees from other countries
to help them acquire and become proficient in skills
that would be difficult to learn in their homecountry. Building cleaning is a profession covered by
the program and trainees are taught skills based ona practical training plan.

developed our own original methods for helping
trainees, who come to Japan alone, to feel secureand comfortable in their work.
Our first cohort of trainees included four people,
and as there were many things that we were dealing
with for the first time, such as coordinating with thesupervising organization, ensuring trainees haveaccess to necessary support, and coping with the
COVID-19 pandemic, we had to solve issue after issue
as we adapted. Now we have 68 trainees (as of June2023), and I feel we have established a strong trackrecord in areas such as systems for incorporating
new trainees, training and development, andbuilding a community with the trainees.

Original practical training methods
As trainees come from countries with different

Operations Management Section,
Business Development Department,
Corporate Management Division
Tokyu Bldg. Maintenance Co. Ltd.

cultures and customs, there are times when they
feel confused and stressed while in Japan. In order
to raise their motivation, we try to communicatethat the experience they have now will definitely
prove useful at some point in their lives, providingthem with a vision of their future and thecontribution they can make to the development of
their home country. The trainees all have their own
individual circumstances and it takes considerable
resolve to come to Japan. We always keep this inmind when considering how we can support them.
One of the many original initiatives we have comeup with is to pay a direct visit to a trainee’s family intheir home country to show the family videos of the
trainee’s life in Japan and the work they are doing.
This shows consideration for both the trainee andtheir family. It also gives us a chance to experience

the culture and customs of the trainee’s homecountry, deepening our mutual relationship.
Main initiatives
1) Between one and three months before aprospective trainee comes to Japan, we visit themin their home country and conduct an interview
2) We encourage trainees to enter a Japanese essay
writing contest3) After a trainee has been in Japan a year, we visit
their family in their home country4) We implement training programs for acquiring
skills (once per month)
Going forward, we will do our best to continue
being an appealing company that is a popular
choice for trainees.

Human rights due diligence concerning Technical Intern Training Program trainees
In fiscal 2021, we conducted an employment
survey covering the way the Technical Intern
Training Program is being implemented within theGroup. In June 2023, we conducted human rights
due diligence concerning Tokyu Bldg.
Maintenance, which is approved to accept
trainees under the program.
This was implemented through a series ofinterviews with an external third party inattendance. We interviewed the employee
responsible for technical intern matters (who also
serves as a technical intern training coordinator),and one living guidance counselor, which are both

positions required by the Technical Intern Act, as well as
two trainees. These interviews covered a wide range of
topics, including relationship with the supervisingorganization, the recruitment process and employment
customs, and treatment and lifestyle in Japan.
The interviews confirmed that trainees were being
looked after as stipulated by the program, including
being lent one Wi-Fi compatible device per trainee, andonly paying accommodation and utility expenses up to acertain amount. It also confirmed that the management
framework was properly fulfilling its function, including
employing and training an inhouse interpreter, andensuring regular communication between trainees andsupervisors, and that a consultation channel fortrainees had been established and trainees were awareof it. As a result, it was recognized that there were no
human rights violations within the scope of theinvestigation that required immediate improvement.

An interview with a trainee

78
Value Creation Foundation

GovernanceCorporate Governance

The Group improves the soundness and transparency of its management by emphasizing the practice and thoroughness of risk management and compliance.
We are strengthening corporate governance to enable more prompt and decisive decision-making while following the standards required of a company listed in thePrime Market.

Message from the Chairman of the Board of Directors

Kiyoshi Kanazashi
Chairman, Chairman of the Board of Directors
Tokyu Fudosan Holdings Corporation

In its long-term management policy andmedium-term management plan, the Tokyu
Fudosan Holdings Group aims to realize its ideal
vision to “create value for the future” and build
a solid and distinctive business portfolio. Having
set environmental management and digitaltransformation (DX) as the Group policy, theGroup strives to create unique value. And theGroup positions and implements governanceas an essential management foundation toachieve this.
We believe that, while also paying heedto diversity, it is necessary for the compositionof the Board of Directors to be such thatthe Board possesses the skills required toachieve long-term management policies andadvance medium-term management plans.
We have determined seven skillsets that wewould like the overall Board to possess. These
are corporate management, environment/sustainability, accounting/finance, legal
affairs/compliance/risk management, global,
personnel/labor, and DX. These skillsets
are used as criteria for considering director
candidates.
For our independent outside directors, inaddition to their role and duty to appropriately
supervise the performance of duties from astandpoint independent of management,
we also ask them to give advice on businessexecution from a comprehensive and objective
perspective, and to give their opinions fromthe perspective of the Group’s broad range ofstakeholders. We believe that an appropriate
ratio for independent outside directors in the
Board is one-third or more, and the current
ratio is 38%.
In evaluating the effectiveness of the Boardof Directors, we obtain objective evaluations
with the use of a third-party attorney-at-law

who has no advisory connections to theCompany as well as an external consultant. Our
effectiveness evaluation in fiscal 2021 broughtup the issue of a need to enhance the insightof all Board members with regard to newsocial issues. Accordingly, in fiscal 2022, we
conducted officer training on diversity, equity,and inclusion (DE&I) to promote understanding
concerning human capital. In addition, we also
aimed to deepen Board discussions throughreports on the details and implementation
progress of our DX strategy.
Going forward, we will continue tostrengthen governance as a “foundation
supporting our sustainable growth” and in turn
realize our vision to “create value for the future.”

79
Value Creation Foundation

GovernanceCorporate Governance

Timeline of the strengthening of corporate governance
FY

2014

2015

Management plan

2016

2017

Elected first outside
director

2021

2022

Long-term vision
GROUP VISION 2030
Medium-Term Management
Plan 2025

Elected first female
outside director

Increased the numberof female outside
directors to two

Outside directors

Outside directors

Outside directors

Outside directors

Outside directors

1/9

3/13

4/13

6/15

5/13

23.1%

Evaluation of theeffectiveness of theBoard of Directors• Began evaluating
effectiveness of theBoard of Directors

Nomination andCompensation
Committee• Established theNomination andCompensation
Committee

Compensation systems

Other

2020

Stage 2: Medium-term Management
Plan 2017–2020

Elected two more
outside directors

11.1%

Outside directors/
total directors

2019

Medium- and long-term management plan
Value Frontier 2020
Stage 1: Medium-term Management
Plan 2014–2016

Composition of the Boardof Directors

2018

30.8%

• Introduced
third-party evaluationof the effectiveness of
the Board of Directors• Began theappointment of alead independent
outside director

38.5%• Began using an
external consultant
for evaluations• Changed so thatoutside directors
account for amajority• Introduced astock-based
compensation
system for directors
and delegatedoperating officers• Establishedindependence
standards foroutside directors• Clarified policy
regardingcross-shareholdings

40.0%• Set KPIs forcorporate
governance• Established the
Corporate
Governance
Guidelines• Evaluatedremuneration for
officers that takes
into account their
ESG efforts• Increased
correlation with
importantmanagement plan
indicators• Disclosed a directors'
skills matrix• Moved to Prime
Market

80
Value Creation Foundation

GovernanceCorporate GovernanceCorporate governance systemand build a corporate governance system that
contributes to expediting decision making.

Basic approach
In order to fulfill our responsibility to ourstakeholders, including customers, employees,
business partners, local communities,
shareholders, and investors, as well as our
responsibility to future society, we strive to ensure
our sustainable growth and increase corporate
value over the medium and long term byaddressing social issues through our business.
To that end, we will work to ensure thesoundness and transparency of management

Corporate Governance Guidelines
We have stipulated our basic approach to andour system for corporate governance in the
Tokyu Fudosan Holdings Group Corporate
Governance Guidelines. We refer to theseguidelines for implementing initiatives
concerning governance and engaging smoothly
in constructive dialogue with shareholders andCorporate governance structure

investors. Since we developed these guidelines
in 2018, we have continued to review them in
response to revisions of laws and social demand
related to governance.
To the Corporate Governance website

Roles of key organizations
Board of Directors
The Board of Directors passes resolutions on the
Company’s management policy and importantmatters concerning business execution andsupervises the performance of duties by directors
in accordance with stipulations of laws, theArticles of Incorporation, and other criteria.

General Meeting Shareholders
Coordination

Coordination

Audit
Audit & Supervisory Board
Audit & Supervisory Board Members

Board of Directors

Audit

Acconting Auditor

Nominating andCompensation Committee

Audit

President
Risk Management Committee

Group Executive Committee

Sustainability Committee

Group Internal Audit Department

Audit

Business Divisions
Group management

Audit

Group Companies

Coordination

Coordination

Audit

Audit & Supervisory Board
Each member of the Audit & Supervisory Board
audits daily corporate activities, including thelegality of directors’ performance of their duties
and the appropriateness of accounting processes,
in accordance with stipulations of laws, theArticles of Incorporation, and other criteria.
Nomination and Compensation Committee
This is a non-mandatory committee thatmainly deliberates on matters related to
the nomination of candidates for director
and operating officer and compensation for
directors and operating officers.

In order to promote the appropriate
execution of business in terms of bothfinancial and non-financial aspects, we haveestablished the following organizations
headed by the president and CEO.
Group Executive Committee
This committee deliberates on importantmatters related to management and operationsof the Group and oversees deliberations,
reports, and the implementation of major
investment projects for each Group company,
as well as business and other strategies, from aGroup-wide perspective.
Risk Management Committee
This committee comprehensively manages
and supports risk management by Group
companies. This includes managing importantGroup-wide risk countermeasures; working
to understand, evaluate, and monitor the
status of risk management efforts at eachGroup company; and reporting the results ofthese activities to the Board of Directors. This
committee meets twice a year.
Sustainability Committee
This committee evaluates the opportunities andrisks of environmental issues such as climatechange; social contributions; diversity, equity,and inclusion (DE&I); and other important
issues. It also drafts plans, tracks achievements,
and reports the results of deliberations to theBoard of Directors. This committee meets twicea year.

81
Value Creation Foundation

GovernanceCorporate Governance

Board of Directors
Position of the Board of Directors
The Board of Directors functions as a supremedecision-making body, second to the General
Meeting of Shareholders. It meets once amonth, in principle, and extraordinary meetings
are held as necessary. Based on regulations
including the Board of Directors Regulations
and the Duty Authority Regulations, the Boardof Directors makes decisions on importantmatters related to the Group’s management,such as management policies, business plans,
and large-scale investment plans, in addition tomatters stipulated in laws, regulations, and the
Articles of Incorporation.
Main topics discussed by the Boardof Directors
Fiscal 2022
• Formulation of medium-term management plan
• Introduction of the Trust-type Employee Shareholding
Incentive Plan
• Evaluations of the effectiveness of the Board of
Directors• Corporate Governance Reports• Verification of the rationality of cross-shareholdings• Audit reports from the Internal Audit Department• IR activities reports• Key risk indicator (KRI) monitoring report• The 2023 economy and business environment outlook• Financial market trends and the financing
environment around the Group• Activities reports from the Risk Management
Committee, Sustainability Committee, andInformation Security Committee• Monitoring of the progress made on previous
resolutions of the Board of Directors• Reports on the status of COVID-19 infections

Authority for the execution of business
relating to matters other than those to be
discussed by the Board of Directors is delegatedto the Group Executive Committee andother subordinate meeting bodies, as well as
relevant officers and other responsible persons.
The Board of Directors also supervises theperformance of these duties.
Composition of the Board of Directors
We are striving for a composition of the Boardof Directors that is diverse and possesses
the skills required to achieve long-term
management policies and advance mediumterm management plans. For this purpose, wehave developed a skills matrix to ensure a goodbalance between the Board of Directors’ overall
knowledge, experience, and capabilities, while
ensuring its diversity.
See p. 90

We select people with knowledge andjudgment as candidates for internal directors. As
our outside directors, we select people who haveextensive experience in fields such as management,
legal affairs, finance, and accounting, while having
a sensible, objective perspective. We choose
candidates who can raise and discuss problems
about growth strategies and the enhancementof governance from an independent standpoint.
Candidates for outside director are selected basedon the premise that they will not hold concurrent
positions as a director, corporate auditor, or
executive officer at more than five listed companies
other than the Company. We believe that an
appropriate ratio for independent outside directors

in the Board of Directors is one-third or more, andthe current ratio is 38%.
Evaluating effectiveness of the Boardof Directors
Each year, we carry out an evaluation of theeffectiveness of the Board of Directors basedon opinions from each director and Audit& Supervisory Board member and otherinformation, with the aim of ensuring thesoundness and transparency of management.
Issues identified through these evaluations areshared with directors and reflected in ongoing
improvement efforts with the aim of further
raising effectiveness.
Evaluations are carried out using aquestionnaire for directors and Audit &Supervisory Board members. We use an
external consultant to ensure that the design
and aggregation of questionnaires are

objective, and the responses are evaluated by athird-party attorney-at-law who has no advisoryconnections to the Company.
One example of how effectiveness has
been raised is from the fiscal 2021 evaluation,in which it was viewed that amid the changes
rapidly taking place in a variety of domains,there was need to enhance the insight of all
Board members with regard to new social issues.
Accordingly, in fiscal 2022, we made this an issue
to work on. Specifically, we conducted officer
training on DE&I to promote understanding
concerning human capital. In addition, we also
aimed to form a common understanding anddeepen Board discussions through reports on
the details and implementation progress of theGroup’s DX strategy. As a result of initiatives
like these, the fiscal 2022 evaluation of theeffectiveness of the Board of Directors again
confirmed that the Board is sufficiently effective.

Effectiveness evaluation cycle
Questionnaire• Questions are set by an external consultant to realize a more objective evaluation that can be used as a comparison
with other companies.
• Questions cover a broad range of topics, including the composition and operation of the Board of Directors,
management strategy, risk management, and communication with shareholders.
• Questionnaires are anonymous to enable candid responses.

Analysis and assessmentof evaluation results
An external consultant
analyzes and assesses
response content.

Third-party evaluation

Feedback to the Boardof Directors

An attorney-at-law, who has
no advisory connections to
the Company, carries out athird-party evaluation.

The results of the evaluation
are shared with the Board of
Directors which formulates
and implements measures tofurther improve effectiveness.

82
Value Creation Foundation

GovernanceCorporate GovernanceNomination and Compensation
Committee composition
The Nomination and Compensation Committee
was established as an advisory body to theBoard of Directors to increase the fairness andtransparency of procedures for matters related
to the nomination of director candidates andoperating officers and matters relating to theircompensation, among others. Internal rules
stipulate that over half of the committee should
be independent outside directors and that an
independent outside director serves as chair.
The Board of Directors consults this committee
concerning the matters above before passing
resolutions on them.
The committee met three times infiscal 2022 and attendance was 100%. The
composition in fiscal 2023 is as follows.
• Chair
Makoto Kaiami (Independent Outside Director)• MemberSatoshi Miura (Independent Outside Director)• Member
Tsuguhiko Hoshino (Independent Outside Director)• Member
Kiyoshi Kanazashi (Chairman)• Member
Hironori Nishikawa (President & CEO)Specific matters considered by the
Nomination and Compensation Committee
Fiscal 2022
• Individual evaluation concerning performance-based
remuneration (bonuses) for executive directors andoperating officers in fiscal 2021
• Selection of a representative director, directors withspecial titles, and a lead independent outside director• Selection of a chair and members for the Nomination
and Compensation Committee• Transfer of the representative director of a subsidiary(replacement of president)• The director and operating officer system from April
2023 onward

Lead independent outside director
In accordance with Supplementary Principle
4.8.2 of Japan’s Corporate Governance
Code, we have appointed a lead independent
outside director with a view to establishinga framework for communicating andcoordinating with management and forcooperating with the Audit & Supervisory Boardand its members.

Policies and procedures for the appointment or dismissal of membersof senior management and the nomination of Director candidates
Appointment policies• The candidate has the requisite character andknowledge to be a director.
• There are no health factors that might impede theexecution of duties.
Directors appointed from within the Company• The candidate has the requisite knowledge andjudgement to practice management that will leadto the achievement of medium- to long-term
management plans.
Succession plan
Each candidate’s achievement of management indexes
made through their work experience as a person responsible
for two or more businesses is evaluated to determine
whether they have the requisite knowledge, judgment, andmanagement capabilities. At the same time, their aptitude isevaluated objectively by a third party.

Outside directors• The candidate has a sensible, objective perspective
and extensive experience in fields such as
management, legal affairs, finance, and accounting.
• The candidate can raise and discuss problems
about growth strategies and the enhancement ofgovernance from an independent standpoint.
• The candidate cannot hold concurrent positions as
a director, corporate auditor, or executive officer
at more than five listed companies other than the
Company.
Skills matrix
We have developed a skills matrix to ensure a goodbalance between the overall Board of Directors’knowledge, experience, and capabilities, while
ensuring its diversity.

The seven skill areas required by the Company’s
Board of Directors (seven skill requirements)• Corporate management• Environment/sustainability• Accounting/finance• Legal affairs/compliance/risk management• Global• Personnel/labor• DX
See p. 90
Appointment procedure
Selection of candidates based on theappointment policies
Appropriate personnel are selected as candidates
for senior management or director positions inaccordance with the appointment policies.
Deliberation by the Nomination andCompensation Committee
The committee discusses the selection results andreports their advice to the Board of Directors.
Decision by the Board of Directors
The Board of Directors discusses the candidates,
taking the advice of the Nomination andCompensation Committee into account, and makes
a decision.
Dismissal policy
In the event a member of senior management is foundto have committed an illegal or improper act, suchas a violation of internal regulations, or is recognized
as lacking the appropriate aptitude for their position,then the Board of Directors will discuss and decideon the necessary response based on advice from theNomination and Compensation Committee.

83
Value Creation Foundation

GovernanceCorporate GovernanceDirector compensation
The upper limit for annual compensation
paid to directors is set at no more than ¥600
million (not including employee salaries paid to
directors serving concurrently as employees).
We have also introduced a stock-based
compensation system, which, in principle,
grants directors shares of the Company at thetime of retirement. These shares are separate
from monetary compensation. The Company
has established a trust for granting stocks,
and based on this, executive directors andoperating officers with whom the Company
has concluded mandate contracts (operating
officers designated by the Board of Directors)
may receive a maximum of 130,000 points per
year (with one point equating to one share).
The Company may revoke all or part of thepoints granted to those who are deemed tohave caused disadvantage or inconvenience to
the Company.
Policies related to the determinationof compensation for individual directors andother such matters are decided by the Board of
Directors after consulting the Nomination andCompensation Committee.

Overview of policies related to thedetermination of compensation for
individual directors and other such matters
Basic policy• The level of compensation should enable theCompany to acquire and maintain talented
human resources and motivate them toperform their duties• The system and structure should encouragethem to contribute to increasing corporate
value and shareholder value over the medium
and long term
Compensation composition
Based on the basic policy, overall
compensation comprises the following threecompensation types.
• Monthly compensation
Basic compensation for the performance ofdaily work
• Bonuses
A short-term incentive determined based on
consolidated business results for a single fiscal
year and individual performance (Evaluation
based on consolidated business results mainly
focuses on consolidated operating profit but
also includes comprehensive consideration offactors such as operating profit margin, ROE,
the ratio of EBITDA to net interest-bearing
debt, and ESG initiatives, while individual
performance is evaluated on factors suchas the business results of the organization
the individual is responsible for and theircontribution to achieving management plans.)• Stock-based compensation
A medium- to long-term incentive designed tomotivate directors to contribute to improving
medium- to long-term business performanceand corporate value (A grant of the Company’s
shares is paid on retirement through a trust for
granting stocks, with the amount based on anumber of points awarded to each director.)compensation levels of industry peers, among
other considerations.
• Non-executive directors
Set at a level that will attract the humanresources the Company requires and motivate
the performance of duties.
Composition ratios• Executive directors
Generally, a 5:4:1 ratio of monthly
compensation, bonus, and stock-based
compensation (when the bonus is thebase amount)Compensation levels• Executive directors
Determined based on a level of compensation
set for the president and CEO with a differential
for each position factored in, with reference
to objective data from external researchorganizations. The level of compensation forthe president and CEO, used as the base level,
is set at around 0.1% of the consolidated
operating profit for the previous fiscal year,
in principle, and adjusted by factoring in
extraordinary income and losses and the• Non-executive directors
Limited to monthly compensation only
in light of their role of supervising themanagement of the Company from an
independent, objective standpoint.

Compensation framework for executive directors
Item

Fixed
compensation

Variable compensation

Monthly
compensation

Bonus

Stock-based compensation

When it is paid

Every month

Once a year

On retirement

Positioning

Basic
compensation

Short-term incentive

Medium- to long-term
incentive

50%

40%

10%

Target percentage to totalcompensation
Approach to fluctuation
Fluctuation from baseamount-Varies according toperformance evaluation
40 -160%

Linked to stock price84
Value Creation Foundation

Corporate Governance

GovernanceCompensation for Audit & Supervisory
Board members
The upper limit for annual compensation paid
to Audit & Supervisory Board members is set at
no more than ¥120 million and compensation
for individual members is determined throughdiscussion by the Audit & Supervisory Board,
within the scope of this upper limit.

Audits and internal control
Audit & Supervisory Board
The Company has adopted a statutory
auditor system. Under this system, Audit &Supervisory Board members audit the duties ofthe directors from an independent standpoint
entrusted by the shareholders, collect sufficient
information to perform their duties, and ask
for explanations on proposals and proactively
express their opinions at the meetings of theBoard of Directors.
The Audit & Supervisory Board iscomprised of two full-time Audit & Supervisory
Board members and two part-time Audit &Supervisory Board members (independent
outside Audit & Supervisory Board members).
The Audit & Supervisory Board formulates
policies and plans for audits by its members,
makes decisions on the duties of each member,and shares the results of the audits performedby its members in accordance with their roles.
Audit system—Three-pillar audit structure
coordination
The Company employs a three-pillar audit
structure consisting of the Internal Audit
Department, the Audit & Supervisory Board andits members, and the accounting auditor. Basedon the Internal Audit Regulations, Basic Internal
Control Regulations on Financial Reporting,and Statutory Auditor Audit Standard, thethree parties share information as well as
each other’s reports. Further, they coordinate
with each other as needed in the auditing
activities they engage in from their respective
independent standpoints.
In addition, the three parties shareawareness of issues with the Internal Control
Department through the internal control
system audits they perform and through theexchange of ideas with relevant officers.
To ensure the Internal Audit Department’s
independence and effectiveness, the GroupInternal Audit Department has been establishedunder the control of the president and CEO.
In addition, the Company has established the
Office of Statutory Auditors, an organization
independent from Company executives, withdedicated staff supporting the work of themembers of the Audit & Supervisor Board.

Total amount of compensation for directors and Audit & Supervisory Board members in fiscal 2022

Position

Total amount ofcompensation(Millions of yen)Internal control
The Tokyu Fudosan Holdings Group isthoroughly implementing compliance-based
management to achieve its sustainable
development and improve its corporate
value. All members of the Group shall takesteps to put in place and implement internal
control systems to raise levels of efficiency andeffectiveness while ensuring proper business
operations, achieve management priorities,
and disclose information appropriately.
In addition, Audit & Supervisory Board
members monitor and validate the progressof development and the operational status ofinternal control systems.

Notes:

Total amount of each type of compensation (Millions of yen)Monthly compensation(fixed compensation)

Bonus

Stock-based
compensation(1) Stock-based compensation is categorized as non-monetarycompensation.

Number of
eligible persons(2) The number of people and the compensation amounts in thetable to the left include three directors who resigned at theclosing of the 9th Ordinary General Meeting of Shareholders
held on June 28, 2022.

Directors

408

211

144

52

16

(3) The amount of bonuses includes the provision for bonuses for
directors (and other officers) for fiscal 2022.

(of which, outside directors)

56

56

–

–

6

Audit & Supervisory Board
members

68

68

–

–

4

(4) The amount of stock-based compensation is the provision forshare awards for directors for fiscal 2022. Provision for shareawards for directors (and other officers) is basically the bookvalue of the Company’s shares acquired through a trust using
funds provided by the Company.

(of which, outside Audit &Supervisory Board members)

10

10

–

–

2

85
Value Creation Foundation

GovernanceRisk Management

Risk management policy
The Company has defined seven risk
categories (investment risks, financial andcapital risks, personnel and labor risks, legal
and compliance risks, IT strategy risks/ digitalstrategy risks, information security risks, andcrisis management risks) that, if manifested,
could interfere with the achievement ofmanagement targets of Group companies. We
recognize climate change risk as a risk withhigh significance.
To manage these risks appropriately, we
have established the Basic Risk Management

Policy. We have developed and operate a risk
management system based on this policy. In
addition, with respect to the six themes towork on (materialities) set out under the longterm vision, we have identified and manage
opportunities, risks, and relevant material risks.
Risk management structure
The Risk Management Committee and
the Group Executive Committee manage
each highly significant risk category inaccordance with the type of risk. Overallrisk management is overseen by the Risk

Basic risk management policy

Management Committee, which reports to
the Board of Directors.
The Risk Management Committee also
manages Group priority risks, which are risks
that need to be addressed on a Group-widebasis, and monitors and evaluates the status ofrisk management at each Group company.
Each Group priority risk is assigned toa supervising division, which is responsible
for running a thorough PDCA cycle. Also, themonitoring and evaluation of the status of risk
management at each Group company by the
Risk Management Committee is strengthening

Risk management structure

Board of Directors

The Company makes every effort to clearly identify all major risks as they apply to the Group as a whole andtakes systematic and continuous steps to implement all necessary measures on a priority basis in order tocomprehensively manage all risks that have the potential to hinder the Group from achieving its objectives or tocreate a loss.
Highly significant risks• Investment risks • Financial and capital risks • Personnel and labor risks • Climate change risks
Other risks• Legal and compliance risks • IT strategy risks/ digital strategy risks • Information security risks• Crisis management response

the overall Group risk management structure.
In addition, the Company takes steps toconfirm the efficacy of its risk management
systems as well as its risk management
operations through internal audits. Audits ofmajor risks are systematically undertaken inaccordance with their priority. Where there isan urgent risk of a major loss, the Company
provides information and makes decisions
based on its Emergency Response Provisions, so
as to minimize damage.

Risk Management Committee*

Group Executive Committee
Information
sharing

Group companies* Has overall control of managing Group priority risks and monitoring and evaluating the status of risk management at each Group company

86
Value Creation Foundation

GovernanceRisk Management

Main scenarios and management initiatives for major risks
Risk category

Main scenario

Risk management initiatives

Investment
risks• Asset-utilizing businesses may see a downturn inprofits or profitability, or a decrease in the value of
owned assets due to factors including changes inbusiness conditions, real estate markets, orgovernment policy in Japan and overseas.

• We have set risk management factors and calculate
value at risk for each investment asset, and theamount of risk is managed through continuous
monitoring.

Financialand capitalrisks• Our financial position and business performance may
be adversely affected by a rise in interest rates or asteep drop in share price.

• When procuring financing from financial institutions,
we minimize the impact of interest rate rises throughsteps such as ensuring the majority of interest-bearing
debt is long-term.
• In regard to equity, we work to keep our share price at
an appropriate level by analyzing capital market trends
and other measures.

Climatechange risks• Transition risk: Tighter laws and regulations, such ascarbon taxes, may have an adverse impact on
business, while companies that cannot adapt tomovement toward a decarbonized society may suffera fall in demand and loss of reputation.

• We have accepted the recommendations of the Task
Force on Climate-Related Financial Disclosures (TCFD)
and joined the TCFD Consortium.

• Physical risk: The ski resort business may be impacted
by reduced snowfall and adverse climate events may
raise costs by damaging buildings and lengthening
construction periods.

• Details of initiatives are discussed and coordinated by
the Sustainability Committee and reported to theBoard of Directors when necessary.

• We have set climate change-related targets and are
advancing Group-wide initiatives to achieve them.

IT strategy
risks/ digitalstrategyrisks• If we are unable to respond swiftly and appropriately
to technological progress and changes in customer
demand, our financial position and businessperformance may be adversely affected.

• The Group Digital Transformation Promotion
Department is leading the consideration of possible
applications for new technologies in each business.

Personnel
and laborrisks• If we are unable to continuously recruit and cultivate
human resources due to changes in social structure,such as declining birthrates and aging populations, it
may hinder Group growth.

• We are eliminating over-long working hours andencouraging employees to use paid leave.

Information
securityrisks• If we were to suffer an information leak caused by acyberattack or Group employee, it may adversely
impact our social credibility and brand image.

• We are reinforcing our information systems throughsecurity measures and other means.

• We have positioned digital transformation (DX) as theGroup policy and are advancing various measures.

• We are adapting to the diverse work styles of
employees through measures such as remote work
and work-at-home systems.

• We are raising the digital literacy of employees
through training, such as targeted email attack drills.

• A crisis such as a natural disaster, terror attack,Crisisaccident, fire, or epidemic, an event such as the
management
discovery of an environmental issue or real estate
response
defect, or an extreme change in population
demographics may result in conflict related todamages connected to assets owned by the Group or
the fulfillment of compensation obligations.

• We are preparing safety measures and business
continuity plans for times of disaster.

Legal andcompliancerisks• We have formulated and promote a complianceprogram.

• If an event such as a violation of laws and regulations
or a payment of compensation for damages were tooccur, it may adversely impact our social credibility andbrand image.

• We are carrying out training that anticipates a varietyof potential disasters.

• We are establishing compliance frameworks at eachGroup company.
• We have created a code of conduct and compliancemanual for all Group officers and employees.

Reinforcing information security
The Group has established a fundamental
policy on information management andthe Fundamental Rules on Information
Management, which clarify responsibility for
information management and specify basic
requirements and principles of information
management, among other roles. In addition,
the Information Security Committee has
established and operates PDCA cycles, which
includes receiving activity reports from eachGroup company.
Compliance
Based on the understanding that the practiceof risk management through compliancebased management is the foundation of its
operations, the Group raises the awareness of
all officers and employees so that they will not
only comply with laws and regulations but also
make decisions and take actions in accordancewith the Tokyu Fudosan Holdings Group Codeof Conduct.

In addition, the Tokyu Fudosan HoldingsGroup Compliance Manual has been createdas a practical manual, and all officers andemployees are thoroughly informed aboutcompliance through periodic training.
Compliance helplines were established at
the Company and individual Group companies
for consultations and whistleblowing relating
to violation of laws, regulations, and otherrules. These helplines can be used by all Group
employees (including contract employees,
temporary employees, and part-timeworkers). Specifically, we have established
an internal whistleblowing office that allows
anonymous reports to be made and an external
whistleblowing office, where cases are handled
by a lawyer who is not our corporate lawyer.
The aim of these offices is to discover andrectify violations at the earliest possible time. In
fiscal 2022, 160 consultations and enquiries,
mostly concerning minor issues, were madethrough these channels.

87
Value Creation Foundation

Governance

Officers

Directors
Kiyoshi Kanazashi

Hironori Nishikawa

Hitoshi Uemura

ChairmanPresident & CEO

Representative Director &Vice President

Director, Tokyu Corporation
Representative Director(Chairman), The Tokyu
Foundation
Representative Director(Chairman), Lifelong Health andWellness Association

Chairman, Tokyu Land
Corporation

Number of the Company’s
shares owned

112,146(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)
Period in office

9 years 9 months(As of June 2023)

Reason for election

Kiyoshi Kanazashi joined Tokyu Land Corporationin 1968 and has worked in areas such as the
housing business. He has participated in corporate
management as President and Director of theCompany from 2013 to 2015 and as Chairman of theCompany since 2015. He has extensive operational
experience within the Group and knowledge of every
aspect of corporate management. He also offers
insight relating to the environment and sustainability
gained through his commitment to the activities of an
external organization that aims to realize a sustainable
society with lifelong health.

Number of the Company’s
shares owned

52,675(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)
Period in office

7 years(As of June 2023)

Reason for election

Hironori Nishikawa joined Tokyu Land Corporationin 1982 and has worked in areas such as the resort
business, human resources division, and generaladministration division. He has participated incorporate management as a Director of the Company
since 2016 and as President & CEO of the Company
since 2020, with a focus on promoting environmental
management and digital transformation (DX). He
offers extensive operational experience within theGroup, knowledge of every aspect of corporate
management, and insight relating to the environmentand sustainability.

Number of the Company’s
shares owned

51,175(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)
Period in office

8 years

Yoichi Ota

Hiroaki Hoshino

Director, Operating Officer

Director, Operating Officer

Director, Operating Officer

President & CEO, Tokyu
Community Corp

President & CEO,Tokyu Livable, Inc.

President & CEO, Tokyu Land
Corporation

30,500(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)
Period in office

4 years(As of June 2023)

Reason for election

Shohei Kimura joined Tokyu Land Corporation in 1984
and has worked in areas such as the overseas business,senior-related business, and finance division. He has
participated in corporate management as a Directorof the Company since 2019. He offers extensive
operational experience within the Group, knowledgeof every aspect of corporate management, and insight
relating to the environment, sustainability, and DX.

Number of the Company’s
shares owned

31,315(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)

Reason for election

Yoichi Ota joined Tokyu Land Corporation in 1983 andhas worked in areas such as the real estate brokeragebusiness and human resources division. He has
participated in corporate management as a Directorof the Company since 2020. He offers extensive
operational experience within the Group andknowledge of every aspect of corporate management.

Number of the Company’s
shares owned

13,300(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

10/10 (100%)

Period in office

Period in office(As of June 2023)(As of June 2023)

3 years

Hitoshi Uemura joined Tokyu Land Corporation in1982 and has worked in areas such as real estate
securitization operations and the overseas business.
He has participated in corporate management asa Director of the Company since 2013. He offers
extensive operational experience within the Group,
knowledge of every aspect of corporate management,
and insight relating to the environment andsustainability.

(As of June 2023)

Shohei Kimura

Number of the Company’s
shares owned

Reason for election

1 yearReason for election

Hiroaki Hoshino joined Tokyu Land Corporation in
1989 and has worked in areas such as the office andcommercial facility business. He has participated incorporate management as a Director of the Company
since 2022. He offers extensive operational experience
within the Group, knowledge of every aspect ofcorporate management, and insight relating to theenvironment, sustainability, and DX.

88
Value Creation Foundation

Governance

Officers

Directors
Shinichiro Usugi

Hirofumi Nomoto

Director, Operating Officer

Director
Chairman of the Board andRepresentative Director, Tokyu
Corporation
Outside Director, Toei Company,
Ltd.
Outside Director, Mitsubishi UFJ
Financial Group, Inc.

Number of the Company’s
shares owned

7,000(As of March 31, 2023)

Reason for election

Shinichiro Usugi joined Tokyu Land Corporation in1991 and has worked in areas such as the financedivision and residential business. He has been in
charge of general administrative divisions, including
the finance division and DX division, as an Operating
Officer of the Company since 2022. He offers
extensive operational experience within the Groupand insight relating to accounting, finance, and DX.

Number of the Company’s
shares owned

37,624(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)

Reason for election

Hirofumi Nomoto is the Chairman of the Board andRepresentative Director of Tokyu Corporation, theCompany’s major shareholder. He offers extensive
experience and broad knowledge of every aspect ofcorporate management.

Period in office

9 years 9 months(As of June 2023)

Makoto Kaiami

Saeko Arai

Satoshi Miura

Outside Director(Independent Officer)

Outside Director(Independent Officer)

Outside Director(Independent Officer)

Outside Audit & Supervisory
Board Member, Seiren Co., Ltd.
Outside Director, Japan Post
Holdings Co., Ltd.

Representative, Acuray, Inc.
Outside Member, Board of
Directors, Sumitomo PharmaCo., Ltd.
Outside Audit & Supervisory
Board Member,YKK Corporation

Outside Director, Nippon Life
Insurance Company
Outside Director (Audit &Supervisory Committee
member), Hirogin Holdings, Inc.

Number of the Company’s
shares owned

4,600(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)
Period in office

5 years(As of June 2023)

Reason for election and expected role

The Company expects Makoto Kaiami to leverage
the knowledge in corporate legal affairs, compliance,and risk management he has gained as a judge andattorney at law to supervise the management of theCompany and offer advice on the execution of duties
based on his insight and opinions from the viewpointsof stakeholders. Additionally, there is no legal advisory
contract between Mr. Kaiami and the Company.
The Company judges that he is able to appropriately
perform duties as an Outside Director based on his
expert knowledge and many years of legal experience.

Number of the Company’s
shares owned

3,800(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)
Period in office

5 years(As of June 2023)

Reason for election and expected role

Saeko Arai has broad knowledge of accounting andfinance as a certified public accountant, as well as
experience in corporate management gained as the
CFO of a company and as the representative of its
overseas subsidiary. The Company expects her toleverage this knowledge to supervise the managementof the Company and offer advice on the executionof duties based on her insight and opinions from theviewpoints of stakeholders.

Number of the Company’s
shares owned

5,200(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

11/12 (92%)
Period in office

2 years(As of June 2023)

Reason for election and expected role

Satoshi Miura has served in key positions at NTT
group, a telecommunications operator thatserves the public interest, and possesses extensive
experience and broad knowledge of managing
holding companies from a long-term and sustainable
perspective, as well as of overseas businesses, humanresources, labor affairs and DX. The Company expects
him to leverage this knowledge to supervise themanagement of the Company and offer advice on theexecution of duties based on his insight and opinionsfrom the viewpoints of stakeholders.

89
Value Creation Foundation

Governance

Officers

Outside Directors
Tsuguhiko Hoshino

Yumiko Jozuka

Outside Director(Independent Officer)

Outside Director(Independent Officer)

Vice Chairman, The General
Insurance Association of Japan
Outside Director, Aisin
Corporation

Outside Director, Shimizu
Corporation
Representative Director(Chairman), Japan Institute for
Women's Empowerment &Diversity Management

Number of the Company’s
shares owned

1,300(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)
Period in office

2 years(As of June 2023)

Reason for election and expected role

The Company expects Tsuguhiko Hoshino to leverage
the knowledge of accounting, finance, legal affairs,
compliance, and risk management, as well as theglobal perspectives he gained while serving at
the Ministry of Finance and National Tax Agency,
during which he participated in the establishmentof the Financial Services Agency, to supervise themanagement of the Company and offer advice on theexecution of duties and opinions from the viewpointsof stakeholders. The Company judges that he is able
to appropriately perform duties as an Outside Director
based on his expert knowledge and many years ofexperience as an administrative official.

Number of the Company’s
shares owned0(As of March 31, 2023)
Attendance at meetings of theBoard of Directors in fiscal 2022

12/12 (100%)
Period in office

2 years(As of June 2023)

Reason for election and expected role

The Company expects Yumiko Jozuka to leverage
the knowledge of legal affairs, compliance, risk
management, human resources, labor affairs,
environment, and sustainability she gained whileserving at the Ministry of Health, Labour and Welfare
Ministry, during which she engaged in efforts topromote work style reform and women’s participation
and advancement in the workplace, to supervise themanagement of the Company and offer advice on theexecution of duties and opinions from the viewpointsof stakeholders. The Company judges that she is able
to appropriately perform duties as an Outside Director
based on her expert knowledge and many years ofexperience as an administrative official.

Criteria for determining the independence of outside directors
The Company deems independent outside directors to be independent when, in addition to meeting the independence standards for independent officers stipulated by the Tokyo Stock Exchange, they have notbeen any of the following for any of the previous three fiscal years.
(1) An executive of a business partner to which the Company’s net sales account for 2% or more of the Company’s consolidated net sales(2) An executive of a business partner whose net sales to the Company account for 2% or more of the business partner’s net sales(3) An executive of a lender from which the Company borrows funds that account for 2% or more of the Company’s consolidated total assets(4) An executive of a major shareholder or investor of the Company with an investment ratio of 10% or more
(5) A consultant, accounting professional, or legal professional who receives compensation of more than ¥10 million a year from the Company, besides officer compensation(6) A spouse or relative within two degrees of kinship of a director, etc. of the Company or a consolidated subsidiary

90
Value Creation Foundation

Governance

Officers

Skills matrix of directors
As the Company is a company with an Audit& Supervisory Board, the Board of Directors is
required to be effective as a supervisory bodyas well as to make decisions on the executionof important duties. Therefore, it is preferable
that the composition of the Board is diverse
and that it possesses the skills required toachieve long-term management policies andadvance medium-term management plans.
We have determined seven skillsets that wewould like the overall Board to possess. These
are corporate management, environment/sustainability, accounting/finance, legal
affairs/compliance/risk management, global,
personnel/labor, and digital transformation(DX). These skillsets are used as criteria forconsidering director candidates.

Director

Expertise and experience

Name

Inside /OutsideGenderKiyoshiKanazashi

InsideMale

Hironori
Nishikawa

InsideMale

HitoshiUemuraInsideMale

Shohei
KimuraInsideMale

Yoichi Ota

InsideMale

Hiroaki
HoshinoInsideMale

Shinichiro
Usugi

InsideMale

Hirofumi
NomotoInsideMale

MakotoKaiami

Outside(independent)

Male

Saeko Arai

Outside(independent)

FemaleSatoshi
Miura

Outside(independent)

MaleTsuguhiko
HoshinoOutside(independent)

Male

YumikoJozukaOutside(independent)

FemaleCorporate
management

Environment/sustainability

Accounting/finance

Legal affairs /compliance /riskmanagement

GlobalCommittee membership

Personnel/
labor

DX

Nomination
Risk
andManagement
Compensation
Committee
Committee

Chair

Chair

Sustainability
Committee

Chair

91
Value Creation Foundation

Governance

Officers

Audit & Supervisory Board Members

Operating Officers
Position in the
CompanyKazuo Mochida

Masaoki Kanematsu

Full-time Audit & Supervisory
Board Member

Full-time Audit & Supervisory
Board Member

Katsunori Takechi

Takahiro Nakazawa

Outside Audit & Supervisory
Board Member (Independent
Officer)

Outside Audit & Supervisory
Board Member (Independent
Officer)

Representative, Takechi &Partners

Certified public accountant
Outside Audit & Supervisory
Board Member, Kao
Corporation

Name

Areas of responsibility

President & CEO*

Hironori Nishikawa

Group Internal Audit Department Supervisor

Vice President*

Hitoshi Uemura

Aide to the president, and Supervisor for the Group Solutions Promotion Department, Overseas Business, andGroup Overseas Planning Department

Operating Officer*

Shohei Kimura

Tokyu Community Corp. Supervisor (President & CEO of Tokyu Community Corp.)

Operating Officer*

Yoichi Ota

Tokyu Livable, Inc. Supervisor (President & CEO of Tokyu Livable, Inc.)

Operating Officer*

Hiroaki Hoshino

Tokyu Land Corporation Supervisor (President & CEO of Tokyu Land Corporation)

Operating Officer*

Shinichiro Usugi

In charge of General Management and Supervisor for the Corporate Communication Department,Group Planning Strategy Department, and Group Finance Department

Operating Officer

Katsushi Miki

Tokyu Housing Lease Corporation Supervisor (President & CEO of Tokyu Housing Lease Corporation)

Operating Officer

Katsuhiro Yoshiura

National Students Information Center Co., Ltd. Supervisor (President & CEO of National Students Information
Center Co., Ltd.)

Operating Officer

Takashi Ikeuchi

Supervisor for the Infrastructure Industry & Overseas Business Unit, Tokyu Land Corporation

Operating Officer

Tatsuaki Tanaka

Supervisor for the Wellness Promotion Unit, Tokyu Land Corporation

Operating Officer

Akiko Enokido

Supervisor for the Urban Business Unit, Tokyu Land Corporation

Operating Officer

Shigeyuki Kameshima

Supervisor for the Residential Business Unit, Tokyu Land Corporation

Operating Officer

Jun Kodama

Supervisor for the Group General Administration Department, Group Legal Affairs Department, andGroup Human Resources Department

Operating Officer

Eiji Yamane

Supervisor for the Group Corporate Planning Department, Group Sustainability Promotion Department, andGroup Digital Transformation Promotion Department

Officers denoted with an asterisk (*) are serving concurrently as directors.

92
Data

Financial and Non-Financial Highlights

Key financial indicators
Changes in equity and interest-bearing debt
EquityD/E ratio

Interest-bearing debt

Changes in EPS and ROE

EBITDA multiple

EPS

Changes in dividends and dividend payout ratio

ROE (%)

Dividends (year-end)

Dividends (interim)

Dividend payout ratio (%)(Billions of yen)(Times)

(Yen)

(%)

(Yen)

(%)

1,600

20.0

80

10

30

100

15.0

60

7.3％

14

1,289.8

1,478.8

1,361.0

1,421.7

1,482.9

1,200

11.7

14.5

11.6

800

583.3

596.7

0

2.3

2.3

2018

2019

9.3

631.8

2.5
(2.3)*

400

6.7％

5.7％

10.7
684.6

561.4

7.3％

2020

10.0

40

3.7％
56.84

2.3
(2.0)*
2021

2.2(2.0)*
2022

5.0

0.0

30.13

2018

2019

12

67.21

53.70

20

0

18
5

2020

23.5

15.5
8.0

16.0
8.0

27.3％

48.84

16.0

17.0
53.1％

8.0

2021

2022

0

0

20

8.0

8.0

8.0

9.0

2018

2019

2020

2021

2022

(FY)

¥1,644.1 billion

Property
Management& Operation¥407.6 billion
Humancapital-utilizing
business¥630.6 billion

Total Assets

Breakdown of
the Urban
Development
segment(¥1,644.1 billion)(FY)

Property and equipment,
Intangible assets¥843.6 billion

Real estate for sale¥498.2 billion

Book value of leased properties ¥732.6 billion(NOI yield on operating properties: Approx. 5%)(excluding eliminations)¥2,811.7 billion

Asset-utilizing
business¥2,181.1 billion* D/E ratio after taking hybrid financing into accountStrategic Investment¥537.0 billion

Breakdown of
the Strategic
Investment
segment(¥537.0 billion)

Property and equipment,
Intangible assets¥82.5 billion

40

7.5

Asset breakdown by segment
Urban Development

Real estate for sale¥195.9 billion

Mainly renewable energy facilities

60

35.0％

34.8％

29.8％

6

(FY)

Real Estate Agents¥223.0 billion

14.5

9.0

80

Other
¥258.7 billion

Other¥302.3 billion

0

93
Data

Financial and Non-Financial Highlights

Key non-financial indicators *Some of the figures for fiscal 2022, including for CO emissions, have yet to undergo third party verification.
2

CO2 emissions volume and intensity(1,000 t-CO2)

Scope 1 and 2

2,500

Water usage volume and intensity

Scope 3 (category 1, 2, and 11)

Scope 1 and 2 intensity

90.0

86.8

2,000

1,792.5

75.1

74.6 1,700.9

1,511.2

1,500

80.0

70.0

964.4

60.0

0

2019

256.1
2020

257.0
2021

50.0

152.4

139.9
2022

Water usage volume(m3/m2)

Water usage intensity

7,000

3.5

5,751

6,000

3.0

4,582

4,000

5,087

4,867

2.0

1.8

1.7

1.4

1.3

3,000

1.5

(FY)

Waste volume

30,000

0.5

0

2019

2020

2021

0

2022

2019

2021

2022

2030 (Target)

7.0

Ratio of childcare leave taken by male employees

50

At least 20%

20

100

80

40.1

65.2
60

15

32.2

30
10

8.1

8.6

43.5

9.2

40

7.3

20

20

5

10

2022

2020

(FY)

(%)

2021

7.5

7.4
20,0008.5
8.0

21,181

100

2020

8.5

8.3

(FY)

* The target for fiscal 2030 is a year-on-year reduction

9.5

22,00025

201927,827

8.5

(%)

0

27,63724,000

60

40

9.6

9.0

(%)

41.2

10.0

26,000

Ratio of female managers

39.8(kg/m2)

29,251

28,000

Ratio of women among new graduate hires

50

Waste intensity

1.0

1,000

40.0

2030 (Target)

(t)

2.5

2,000

47.6
283.3

(1,000 m3)

5,000

1,597.1

1,000

500

(kg-CO2/m2)

Waste volume and intensity

02030 (Target)
(FY)

2019

2020

2021

2022

2030 (Target)
(FY)

0

2021

2022

2030 (Target)
(FY)

94
Data

Financial and Non-Financial Data

Financial Indicators
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Operating revenue

Billions of yen(Unit)

595.9

714.1

773.1

815.5

808.5

866.1

901.9

963.2

907.7

989.0

1,005.8

Operating gross profit

Billions of yen

126.8

145.3

148.8

163.8

173.0

182.5

193.4

201.7

164.8

193.9

197.2

Operating profit

Billions of yen

52.0

61.4

63.3

68.8

73.2

77.5

80.2

79.3

56.5

83.8

110.4

Ordinary profit

Billions of yen

39.9

50.6

51.7

56.4

63.6

68.7

70.7

67.5

46.6

72.8

99.6

Net profit*1

Billions of yen

22.1

23.7

25.2

28.7

31.5

35.2

37.5

38.6

21.7

35.1

48.2

Total assets*2

Billions of yen

1,718.4

1,789.8

1,973.8

1,984.4

2,067.2

2,173.2

2,405.2

2,487.4

2,652.3

2,634.3

2,738.5
1,115.6

Current assets

Billions of yen

324.0

416.0

572.6

491.9

588.0

649.8

872.7

889.0

1,005.0

1,037.0

Real estate for sale*3

Billions of yen

175.3

245.9

394.7

364.4

418.6

473.7

568.0

658.0

680.6

757.4

795.2

Non-current assets

Billions of yen

1,394.4

1,373.8

1,401.2

1,492.4

1,479.1

1,523.4

1,532.2

1,598.1

1,647.2

1,597.4

1,622.9

Total net assets

Billions of yen

307.0

369.2

398.3

422.4

446.3

475.3

568.7

594.2

608.7

643.3

700.7

EquityBillions of yen

268.7

364.5

395.3

418.8

442.3

468.1

561.4

583.3

596.7

631.8

684.6

Interest-bearing debt

Billions of yen

974.1

991.0

1,125.4

1,106.1

1,137.9

1,210.4

1,289.8

1,361.0

1,478.8

1,421.7

1,482.9

Cash flows from operating activities

Billions of yen

70.2(13.5)(38.5)

87.9

68.9

12.3

44.5

(6.7)

100.4

76.5

94.7

Cash flows from investing activities

Billions of yen

42.5

19.7

(100.3)(112.4)(71.0)(96.4)(60.4)(147.2)(116.0)(31.8)(120.1)

Cash flows from financing activities

Billions of yen(90.5)

3.0

139.2(30.5)

23.0

82.4

139.1

65.1

108.3

(81.3)

42.8

Capital investment

Billions of yen

43.8

77.5

126.7

78.8

60.3

44.6

89.8

136.1

108.7

41.7

79.8

Depreciation

Billions of yen

20.2

20.0

20.2

21.0

23.5

23.1

24.6

32.3

39.8

43.3

44.5

EPS (net profit per share of common stock)

Yen

41.71

41.61

41.45

47.18

51.77

57.80

56.84

53.70

30.13

48.84

67.21

BPS (net assets per share of common stock)Yen

505.99598.73649.40687.92726.59768.85780.78811.04829.50878.32964.77

Dividends per share

Yen

7.00

8.00

10.00

12.00

13.00

14.50

15.50

16.00

16.00

17.00

23.50

ROA

%

3.0

3.5

3.4

3.5

3.6

3.7

3.5

3.3

2.2

3.2

4.1

ROE

%

8.7

7.5

6.6

7.1

7.3

7.7

7.3

6.7

3.7

5.7

7.3

Equity ratio

%

15.6

20.4

20.0

21.1

21.4

21.5

23.3

23.5

22.5

24.0

25.0

Times

3.6

2.7

2.8

2.6

2.6

2.6

2.3

2.3

2.5*4

2.3*4

2.2*4

D/E ratio
Dividend payout ratio
EBITDA*5
EBITDA multiple*6

%

16.8

19.2

24.1

25.4

25.1

25.1

27.3

29.8

53.1

34.8

35.0

Billions of yen

72.4

84.6

88.0

94.3

101.7

106.1

110.2

117.1

101.7

132.5

160.2

Times

13.5

11.7

12.8

11.7

11.2

11.4

11.7

11.6

14.5

10.7

9.3

*1. Net profit has been reclassified as profit attributable to owners of parent from fiscal 2015
*2. The Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16, 2018) took effect at the beginning of the first quarter of fiscal 2018, and this Accounting Standard was applied retroactively to the main management indexes from fiscal 2017
*3. Real estate for sale: Includes real estate for sale in process and costs of uncompleted construction contracts*4. D/E ratio before taking hybrid financing into account*5. EBITDA: Operating profit before depreciation = Operating profit + Depreciation + Amortization of goodwill*6. EBITDA multiple: Interest-bearing debt/EBITDA (Operating profit before depreciation)

95
Data

Financial and Non-Financial Data

Social indicators
Number of employees(Unit)FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Persons

17,594

18,243

19,23020,421

21,091

21,976

22,953

23,411

21,276

21,614

%

4.8

5.7

5.9

5.7

8.6

8.3

8.1

8.6

9.2

7.3

Persons

0

0

0

0

0

1

1

1

2

2

Ratio of female managers
Female directors (non-consolidated)
Female Audit & Supervisory Board members (non-consolidated)

Persons

0

0

0

0

0

0

0

0

0

0

Female operating officers*

Persons

1

2

2

2

2

2

4

4

6

2

Average years of service (male)

Year

13.2

13.2

13.0

12.9

12.7

13.1

13.2

12.7

12.7

10.4

Average years of service (female)

Year

8.8

9.0

8.7

8.8

8.7

9.2

8.9

8.5

8.7

7.6

Ratio of female full-time employees

%

23.7

24.2

25.3

26.5

27.2

28.5

29.8

30.9

31.8

31.9

Ratio of new female employee hires to total hires

%

31.5

33.0

35.4

41.6

40.1

39.5

32.2

39.8

41.2

40.1

Ratio of childcare leave taken by male employees

%

–

–

–

–

–

–

–

–

43.5

65.2

Deepening understanding of DE&I
(percentage of employees who took an e-learning course)

%

–

–

–

–

–

–

–

–

30.0

86.5

Respect for human rights in the supply chain

%

–

–

–

–

–

–

–

–

41.9

72.7

* Includes female directors who serve as operating officers. However, the number of directors who serve as operating officers is not included in the scope of third-party verification.
• Discrepancies between the wages of male and female employees will be disclosed through our corporate website in November.
For details, see our website• Fiscal 2022 figures also include data that has yet to undergo third party verification. If adjustments are made, the new data will be disclosed through our website as needed.

(As of March 31, 2023)

Environmental indicators(Unit)
CO2 emissions (Scope 1 and 2)
Intensity

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

1,000 t of CO2

228.3

234.8

210.7

233.0

227.5

230.5

283.3

256.1

257.0

139.9

kg-CO2/m2

98.6

101.9

98.4

106.7

101.0

96.1

86.8

75.1

74.6

47.6

–

–

821.9

682.1

585.9

1,295.5

1,913.0

1,618.8

1,801.7

1,705.7

CO2 emissions (Scope 3)

1,000 t of CO2

Category 1, 2, and 11

1,000 t of CO2

Water use

1,000 m3
3

2

–

–

–

–

–

–

1,792.5

1,511.2

1,700.9

1,597.1

3,042

3,141

2,811

2,650

2,548

2,612

5,751

4,582

4,867

5,087

Intensity

m /m

1.33

1.39

1.32

1.23

1.14

1.10

1.8

1.3

1.4

1.7

Waste volumet

14,18918,796

18,90825,12725,56922,932

29,251

27,637

27,827

21,181

Intensity

kg/m2

10.3

10.2

10.1

12.5

12.6

10.2

9.6

8.3

8.5

7.4

• For figures from fiscal 2019 onward, the coverage of this scope has been changed in accordance with the setting of SBT-approved targets.
• Fiscal 2022 figures for CO2 emissions have yet to undergo third party verification. If adjustments are made, the new data will be disclosed through our website as needed.

(As of March 31, 2023)

96
Data

Business Areas

Main domestically operated facilities and stores

SapporoNisekoUnit

Tokyo
Metropolitan
Area*1

KansaiArea*2

Other
Areas

Total

Office buildings

Building

48

1

0

49

Commercial facilities

Facility

23

7

0

30

Logistics facilities

Facility

2

2

0

4

Urban style hotels

Facility

19

4

8

31

Resort facilities

Facility

4

6

26

36

Golf courses

Facility

7

0

8

15

Ski resorts

Facility

0

0

7

7

Senior housing facilities

Facility

15

0

0

15

Fitness

Store

22

10

0

32

Tokyu Livable

Store

139

41

30

210

Type of Property

Naha

Karuizawa
Madarao

Sendai

Tateshina
Kanazawa

Nasu

Katsuyama
Tokyo
Metropolitan
Area*1

Fukuoka

Nagoya(As of March 31, 2023)

Hamamatsu
KansaiArea*2*1. Including Tokyo, Kanagawa, Chiba, and Saitama Prefectures*2. Including Osaka, Kyoto, Hyogo, Shiga, Nara, and Wakayama Prefectures

Atami, Izu

97
Data

Business Areas

Main overseas bases
Asia

China

01

Tokyu Land Corporation (Shanghai) Ltd. (Tokyu Land Corporation)

Taiwan02

Tokyu Livable (Taiwan), Inc. (Tokyu Livable, Inc.)

01

Palau

03

Pacific Islands Development Corporation (Tokyu Land Corporation)

02

Vietnam04

Tokyu PM Vietnam Co., Ltd. (Tokyu Community Corp.)

05

Nozomi Residential Management JSC (Tokyu Community Corp.)

06

Tokyu Land Asia Pte. Ltd. (Tokyu Land Corporation)

07

Investment in OT Group Pte. Ltd. (Tokyu Livable, Inc.)08

PT. Tokyu Land Indonesia (Tokyu Land Corporation)

09

PT. Tokyu Property Management Indonesia (Tokyu Community Corp.)

10

Tokyu Land US Corporation (Tokyu Land Corporation)

11

Tokyu Livable Us, Inc. (Tokyu Livable, Inc.)New York

12

New York Office of Tokyu Land US Corporation (Tokyu Land Corporation)

Dallas13

Tokyu Livable Texas Investment Advisors, LLC (Tokyu Livable, Inc.)

ShanghaiSingapore

04, 0503
06, 07

Indonesia

Jakarta

08, 09The UnitedStatesLos Angeles

The United States

1210, 1113(As of March 31, 2023)

98
Data

Socially and Environmentally Friendly Assets

List of environmental real estate (DBJ Green Building Certification)
5 stars

Properties with the highest environmental & social awareness

DBJ Green Building Certification
was established by Development
Bank of Japan Inc. (DBJ) in April
2011 to recognize properties
with environmental and social
considerations (Green Buildings).

Shibuya Solasta

Shibuya Fukuras

Shibuya-ku, Tokyo

Shibuya-ku, TokyoTOKYO PORTCITY
TAKESHIBA Office tower

Kudan-Kaikan Terrace
Chiyoda-ku, Tokyo

Minato-ku, Tokyo

4 stars

Properties with exceptionally high environmental& social awareness3 stars Properties with excellent environmental & social awarenessShin-Meguro Tokyu Building

Shinagawa-ku, Tokyo

Ebisu Business Tower

Shibuya-ku, Tokyo

Uchisaiwaicho Tokyu Building

Chiyoda-ku, Tokyo

Jimbocho Kita Tokyu Building

Chiyoda-ku, Tokyo

Shibuya Minami Tokyu Building

Shibuya-ku, Tokyo

Shimbashi Tokyu Building

Minato-ku, Tokyo

Shin-Aoyama Tokyu Building

Minato-ku, Tokyo

Nihombashi Front

Chuo-ku, Tokyo

Spline Aoyama Tokyu Building

Minato-ku, Tokyo

Tokyu Plaza Omotesando Harajuku

Shibuya-ku, Tokyo

Nihombashi Honcho Tokyu Building

Chuo-ku, Tokyo

Hamamatsucho Square

Minato-ku, Tokyo

Amagasaki Q's Mall

Amagasaki-shi, Hyogo

Nihombashi Maruzen Tokyu Building

Chuo-ku, Tokyo

Minamiaoyama Tokyu Building

Minato-ku, Tokyo(As of March 31, 2023)

99
Data

Socially and Environmentally Friendly Assets

Renewable energy business list
Hokkaido(As of June 30, 2023)

Total Number of Businesses

87

1,612

Iwate

MW

Equivalent to the energy used by approximately
739,000 regular households*1

Yamagata

CO2 emissions reduction

1,526,000

Solar Power

AomoriRated Capacity

Wind Power

Ishikawa
Fukushima

t-CO2/year*2

Gifu• Includes joint ventures.
• The values for rated capacity and CO2 emissions reduction

TochigiKyoto

are before conversion to equities.

Okayama• Figures for total number of businesses, rated capacity, andTottori

Chiba

Yamaguchi
Fukuoka
Shizuoka Saitama

Nagasaki
Osaka
Kumamoto

Oita

Kagoshima

Miyazaki

Biomass

62 (911.8MW)

In development

7 (136.1MW)

Rooftop

1 ( 92.1MW)

Complete

6 (207.4MW)

In development

6 (154.4MW)

Complete

1 ( 54.5MW)

In development

4 ( 56.0MW)

Ibaraki

CO2 emissions reductions also include one rooftop business(completed locations and locations under development).
• MW values refer to the capacity of solar panels, etc.

MiyagiComplete

Aichi

Kagawa Nara Mie

Nagano*1. Calculated based on the average household using 4,743 kWh of energy per year (from the Japan Photovoltaic Energy Association’s Fiscal 2022 Disclosure Guidelines)*2. Calculated using 435 g-CO2/kWh, the CO2 emissions factor of general power companies for transmission and distribution (excluding Okinawa Electric Power Company) released by the Japanese
government (based on fiscal 2021 results)

Participating in the global
RE100 initiative
In April 2019, Tokyu Land Corporation joined
RE100, a global initiative under which
companies aim to procure renewable energy
for 100% of the electricity used for businessactivities. In December 2022, we achieved acomplete switch to renewable energy.

100
Data

Support for International Initiatives / External Evaluations

Support for international initiatives
The UN Global Compact

The Task Force on Climate-related
Financial Disclosures

Science Based Targets

Renewable Energy 100%

Principles for Responsible Investment(Tokyu Land Corporation)(Tokyu Land Capital Management Inc.)

Major external evaluations
FTSE4Good Index Series

FTSE Blossom Japan Index

FTSE Blossom Japan Sector
Relative Index

S&P/JPX Carbon Efficient Index

MSCI Japan Empowering
Women Index (WIN)MSCI ESG Leaders Index

CDP The A List 2022

CDP Supplier Engagement
LeaderGlobal Real Estate
Sustainability Benchmark

Certified Health & Productivity Management
Outstanding Organizations

WELL Building Standard

DX Stocks(Shibuya Solasta 5-11F)

101
Data

Holdings Structure

The Tokyu Fudosan Holdings Group comprises Tokyu Fudosan Holdings Corporation, a holding company established in October 2013, the five main business companies of
Tokyu Land Corporation, Tokyu Community Corp., Tokyu Livable, Inc., Tokyu Housing Lease Corporation, and National Students Information Center Co., Ltd., and various
affiliate companies led by each of the five business companies.

TOKYU LAND CORPORATIONTOKYU COMMUNITY CORP.

TOKYU LIVABLE, INC.

Tokyu Housing Lease Corporation

TOKYU LAND SC MANAGEMENT CORPORATIONMARIMO COMMUNITY CO., LTD.

Tokyu Livable Staff Corporation

Tokyu Corporate Housing Management Inc.

Life & Work Design Co., Ltd.

TOKYU BLDG. MAINTENANCE

Livable Asset Management Inc.

Residential Partners K.K.

Tokyu Land Capital Management Inc.

SHONAN COMMUNITYTOKYU LIVABLE (TAIWAN), INC.

TLC REIT Management Inc.

DAI-ICHI Building Service Inc.

Tokyu Livable US, Inc.

Tokyu Land Asia Pte. Ltd.

YOGA DISTRICT HEATING AND COOLING CO., LTD.

Tokyu Livable Texas Investment Advisors, LLC

TOKYU LAND CORPORATION (SHANGHAI) LTD.

Tokyu Re·design Corporation

PT. Tokyu Land Indonesia

TC FORUM CORP.

Tokyu Land US Corporation

INFIELD INC.

ReENE Co., Ltd.

HOC PARTNERS PFI Co., Ltd.

ISHIKATSU EXTERIOR INC.

PT. Tokyu Property Management Indonesia

EWEL, Inc.

Tokyu PM Vietnam CO., Ltd.

TOKYU E-LIFE DESIGN Inc.

NOZOMI RESIDENTIAL MANAGEMENT JSC

NATIONAL STUDENTS INFORMATIONCENTER CO., LTD.
SIGMA Japan CO., LTD.

TOKYU SPORTS OASIS Inc.
Tokyu Resorts & Stays Co., Ltd.
Tokyu Resort Corporation
Pacific Islands Development Corporationand others

Segment

Urban Development

Segment

Property Management & Operation

Segment

Real Estate Agents

Segment

Real Estate Agents

Segment

Real Estate Agents

Strategic Investment
Property Management & Operation

TFHD digital Inc.

Tokyu Fudosan R&D Center Inc.

K.627 Inc.

TQConnect Corporation(As of April 1, 2023)

102
Data

Corporate Overview / Stock Information

Corporate overview
Corporate name
Tokyu Fudosan Holdings Corporation

Representative
Hironori Nishikawa, President & CEO

Capital¥77,562 million (As of March 31, 2023)

Address
1-21-1 Dogenzaka, Shibuya-ku, Tokyo 150-0043, Japan

Business activities
Management and administration of the Tokyu Fudosan Holdings Group

Number of employees
89 (consolidated: 21,614) (As of March 31, 2023)

Phone+81-3-6455-1122

Established
October 1, 2013

Stock information and shareholder composition
Basic Stock Information
Listed stock market
Tokyo Stock Exchange (Prime Market)
Securities code
3289
Share trading unit
100 shares
Shares authorized to be issued by the Company
2,400,000,000 shares
Shares issued
719,830,974 sharesFiscal year
April 1 to March 31 of the following year
Ordinary General Meeting of Shareholder
June each year
Shareholders’ record date
• Ordinary General Meeting of Shareholders: March 31• Year-end dividend: March 31• Interim dividend: September 30• Other: Certain days for which prior notice is provided(As of March 31, 2023)

Breakdown of Shares by Shareholder
Treasury stock
0.00%
28,082 shares
1 shareholders
Financial instruments
business operators
2.10%
15,125,648 shares
45 shareholders

Major shareholders
Individuals and others
18.02%
129,714,517 shares
126,465 shareholders

Shares issued
719,830,974 shares

Foreign companies, etc.
25.92%
186,609,976 shares
806 shareholders
Other domestic companies
17.70%
127,414,753 shares
822 shareholders

Financial institutions
36.25%
260,937,998 shares
67 shareholders

Name

Number of shares Percentage ofheld (thousands) shares held*

TOKYU CORPORATION

114,479

15.90%The Master Trust Bank of Japan,
Ltd. (Trust Account)

111,804

15.53%

Custody Bank of Japan, Ltd.
(Trust Account)

56,776

7.89%

SSBTC CLIENT OMNIBUS ACCOUNT

13,312

1.85%

Tokyu Fudosan Holdings Employee
Shareholding Association

12,424

1.73%

Sumitomo Mitsui Trust Bank,
Limited12,140

1.69%

The Dai-ichi Life Insurance
Company, Limited

11,934

1.66%

BNYM AS AGT/CLTS NON TREATY JASDEC

10,101

1.40%

The Nomura Trust and Banking
Co., Ltd. (Tokyu Fudosan Holdings
Employee Shareholding Association
Trust account)

9,710

1.35%

HSBC BANK PLC A/C HSBC BANKPLC AS TRUSTEE FOR PUTM ACS
JAPAN EQUITY FUND

8,749

1.22%

* The percentage of shares held is calculated after deducting 28,082 shares of treasury stock

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