1st Chapter At a Glance Operating revenue 88.5 billion Market conditions for the real estate market were stable, but gains on the sale of buildings for investors was down, and as a result, operating revenue declined slightly (down.9% year on year). Operating profit 73.2 billion Operating profit was up 6.5% year on year. Profit from condominiums increased and the Real Estate Agents and the Wellness businesses performed well, resulting in higher profits for the fifth consecutive year, and the target of 73 billion yen set in the Medium-Term Management Plan was achieved. Profit attributable to owners of parent 31.5 billion Profit attributable to owners of parent was up 9.7% year on year. This was the fourth consecutive increase and the first time in five years that this figure exceeded 3 billion yen. No. of customers Approx. 1 million The Group s wide-ranging business activities, which include the purchase of condominiums, resort and sports facility management, and Tokyu Hands membership programs, continue to attract a large customer base. No. of Group employees 2,421 As a result of the acquisition of the National Students Information Center in fiscal year 216 and other factors, the number of group employees increased. Percentage of full-time employees who are female 27% Various viewpoints are essential for maintaining a high level of competitiveness as a business enterprise, and consequently, the Group encourages diversity in its workforce including increased employment of women. Innovation Business 6.% Tokyu Hands 11.7% Urban Development 3.% Wellness 11.4% Fiscal 216 Percentage of Operating Revenue (Excluding Elimination/Headquarters) Real Estate Agents 9.9% Residential 13.1% Property Management 17.9% 3 TOKYU FUDOSAN HOLDINGS 217 Integrated Report
Business Segment Core Businesses Asset Utilization Type Business Innovation and Reinforcement Urban Development Segment Office Buildings and Commercial Facilities Floor space 1,458, m 2 No. of rental housing under management 124, units The Urban Development segment provides optimal services for a variety of needs related to urban real estate such as development and management of office buildings and commercial facilities, complex redevelopment projects, real estate investment trust management, and management of rental housing. Residential segment Stock Utilization Type Business Rapid Growth Property Management segment No. of condominiums under management 742, units The Property Management segment plays a vital role in the formation of quality social infrastructure through total support in real estate management, including building and equipment maintenance, operation, and repairs, for condominiums, office buildings, commercial and public facilities. Real Estate Agents segment Cumulative No. of condominiums supplied 9, units The Residential segment offers comprehensive support for enriching lifestyles of customers through the sale of high-quality, comfortable residential properties including condominiums and detached housing. Sales agency trading volume 1.1 trillion The Real Estate Agents segment offers comprehensive solutions in real estate transactions, including real estate brokerage, consignment sales, and real estate sales, tailored to diverse customer needs. Mature Markets Growth Markets Increasing Group Added Value New Core Business Tokyu Hands segment Wellness segment No. of stores Tokyu Hands 46 (Including FC stores and overseas stores) Under the banner of its hint market brand slogan, the Group offers an extensive and diverse range of products and provides hints to discovery unique to Tokyu Hands to customers as a means of helping customers establish their own individual lifestyles. No. of facilities 161 The Wellness segment helps customers create a wealth of high-quality time through cross-business collaboration in the fields of leisure, health and senior citizens by developing and managing resorts, leisure facilities, sports clubs and senior housing. Future Growth Drivers Innovation Business segment Overseas Business Development United States Indonesia China The Innovation Business segment develops overseas businesses, and creates and promotes new business fields, such as custom-built houses, renovation projects and greenification. Strategic Business TOKYU FUDOSAN HOLDINGS 217 Integrated Report 4
1st Chapter Major Business Areas Commercial facility Golf course Resort hotel Tokyu Hands *Excluding FC stores Ski resort Members-only fitness club Tokyu Hands Sapporo Store Niseko Mountain Resort Grand Hirafu The Hotel Niseko Alpen Tokyu Hands Nagano Store Madarao Tokyu Golf Club Madarao & Hotel Tangram (Madarao) Tangram Ski Circus (Madarao) Kyu-Karuizawa/Kyu-Karuizawa Annex & Kyu-Karuizawa Hotel Tateshina Tokyu Ski Resort Tateshina Resort, Tateshina/Tateshina Annex & Tateshina Tokyu Hotel Tateshina Tokyu Golf Course Tokyu Hands Kanazawa Store Skijam Katsuyama Skijam Katsuyama Tokyu Hands Okayama Store Oita Tokyu Golf Club Aso Tokyu Golf Club Tokyu Hands Matsuyama Store Tokyu Hands Hiroshima Store Tokyu Sports Oasis Hiroshima Store Tokyu Hands Oita Store Tokyu Hands Kumamoto Store Tokyu Hands Hakata Store Tokyu Hands Kagoshima Store Tokyu Hands Nagasaki Store 5 TOKYU FUDOSAN HOLDINGS 217 Integrated Report
(As of March 31, 217) Overseas Business of the Tokyu Fudosan Holdings Group Mongolia Shanghai Tokyu Land Corporation (Shanghai) Ltd. Tokyu Livable, Inc. Local Subsidiary Tokyu Livable (Shanghai) Inc. China Japan Urabandai Grandeco & Urabandai Grandeco Tokyu Hotel Grandeco Snow Resort Tokyu Hands Sendai Store Nasu Mt. Jeans Nasu Myanmar Laos Thailand Vietnam Cambodia Brunei Malaysia Indonesia Philippines Palau Taiwan Tokyu Livable, Inc. Joint Venture Tokyu Livable (Taiwan) Inc. Hong Kong Tokyu Livable Hong Kong Branch Palau Palau Pacific Resort Pacific Islands Development Corporation Singapore Tokyu Hands, Inc. Jurong East Store/Orchard Store/Suntec City Store Tokyu Livable, Inc. Equity interest in Orange Tee Holdings Pte Ltd. Nasu Kokusai Country Club Jakarta PT. Tokyu Land Indonesia Kinugawa Hunter Mountain Shiobara United States Los Angeles Tokyu Land US Corporation New York Tambara Ski Park Mexico 425 Park Avenue Redevelopment Project Mochizuki Tokyu Golf Club Tsukuba Tokyu Golf Club Sashima Country Club Metropolitan Area (Tokyo metropolitan area and three adjoining prefectures) Office buildings 55 Atami Izusan & VIALA Yamanakako Mount Fuji Ito Amagi Kogen Amagikogen Golf Course Shizunamikaigan Commercial facilities Resort hotels Golf courses Senior residences Tokyu Hands stores Members-only fitness clubs Tokyu Stay 21 4 7 14 17 19 17 Hamanako Kansai Area (six prefectures) Market Square Sasashima Office buildings Commercial facilities 3 7 Golf courses Tokyu Hands stores 4 7 Resort hotels 3 Members-only fitness clubs 13 TOKYU FUDOSAN HOLDINGS 217 Integrated Report 6
1st Chapter Financial and Non-Financial Highlights Financial Highlights Operating revenue (billions of yen) 9 714.1 6 595.9 3 773.1 815.5 88.5 Operating profit (billions of yen) 8 6 61.4 63.3 52. 4 68.8 73.2 93. 2 212 213 214 215 216 212 213 214 215 216 22 Profit attributable to owners of parent * 1 EPS* 2 (billions of yen) (yen) 5 6 42. 4 41.71 4 41.61 41.45 31.5 3 28.7 23.7 25.2 22.1 2 2 1 47.18 51.77 212 213 214 215 216 22 *1 Net income has been reclassified as profit attributable to owners of parent from fiscal 215. 212 213 214 215 216 *2. Earnings per share (EPS): Net profit per share Profit attributable to owners of parent No. of shares issued as of the end of the period A profit per share indicator. ROA* 3 ROE* 4 (%) (%) 4. 1. 3.6 3.5 3.5 3.4 8. 3. 3. 6. 8.7 7.5 6.6 7.1 7.3 2. 1. 212 213 214 215 216 *3 ROA: Return on Assets Operating profit + Interest income + Dividend income) Total assets (average for the period) An indicator that measures the profitability of investments in total assets. 4. 2. 212 213 214 215 216 *4 ROE: Return on Equity Profit attributable to owners of parent Equity (average for the period) An indicator that measure the profitability of investments in equity Debt equity ratio* 5 Debt/EBITDA ratio* 6 (times) 4. 3. 2. 3.6 2.7 2.8 2.6 2.6 Approximately 2.3 (times) 15. 12. 9. 6. 13.5 11.7 12.8 11.7 11.2 1. level 1. 212 213 214 215 216 22 *5 Debt equity ratio: Interest-bearing debt Equity An indicator that measure financial soundness. 3. 212 213 214 215 216 22 *6 Debt/EBITDA ratio: Interest bearing debt EBITDA An indicator of whether the level of interest-bearing debt compared to cash flows generated from business activities is appropriate. 7 TOKYU FUDOSAN HOLDINGS 217 Integrated Report
Non-Financial Highlights No. of employees (person) (%) 25,. 2, 15, 17,16 17,594 18,243 19,23 2,421 Percentage of employees undergoing medical examinations 98. 96. 98.9 99.2 99.3 98.2 1, 94. 5, 92. 212 213 214 215 216 9. 213 214 215 216 22 Ratio of female managers (%) (%) 1. 4. 8. 6. 4. 4.8 5.7 5.9 5.7 Ratio of new female employee hires to total hires 3. 2. 31.5 33. 35.4 41.6 At least 3. 2. 1.. 213 214 215 216. 213 214 215 216 22 CO2 emissions (1,t-CO2) 3 218 228 235 2 11.9 97.8 98.6 21 98.4 233 16.6 Intensity (kg-co2/m 2 ) 12. 11.. 9. Energy consumption (1, GJ) 5, 4,69 4,597 4,66 4, 3, 4,374 4,543 8. 212 213 214 215 216 22 7. 2, 212 213 214 215 216 Water use* 7 (1,m 3 ) 4, 1.33 1.33 1.39 3, 2,919 3,42 3,141 2, 1, 1.32 2,811 1.23 2,663.84 Intensity (m 3 /m 2 ) 1.5 1..5 Waste emissions (t) 2, 15, 18,796 18,98 1, 13,594 14,189 1.2 1.1 5, 11.1 1.3 25,128 13.3 1. Intensity (kg/m 2 ) 2. 15. 1. 212 213 214 215 216 22 *7 Publicly-released values changed due to changes in the calculation method. 212 213 214 215 216 22 5. TOKYU FUDOSAN HOLDINGS 217 Integrated Report 8