“Make the Sustainable Growth” March 27, 2018 TOKYU CORPORATION (9005) Contents
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Three-year Medium-term Management Plan (FY2018 – 2020) “Make the Sustainable Growth” March 27, 2018 TOKYU CORPORATION (9005) https://www.tokyu.co.jp Contents I. Review of Previous Management Plan and Positioning of Current Medium-Term Management Plan 2 II. Long-Term Vision, Long-Term Corporate Strategy & Business Environment 5 III. Basic Policies in the FY2018-2020 Management Plan 9 IV. Key Initiatives 16 V. Projected Figures 39 “Forward-looking statements” Of the information and statements contained in this material, those other than historical facts from the past are forward-looking statements, and they are based on the management judgments of the Company derived from the information available to the Company at this time. Please note that the actual results may differ from these statements for this reason. 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 1 I. Review of Previous Management Plan and Positioning of Current Medium-Term Management Plan 2 Review of Previous Management Plan • Company-wide projected figures were all achieved. Operating Profit (billion yen) TOKYU EBITDA (billion yen) 174.3 83.0 174.3 77.9 163.6 75.4 Plan Plan Plan 169.0 Plan 75.0 152.0 65.0 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 * TOKYU EBITDA = Operating profit + Depreciation + Amortization of goodwill + Disposal cost of fixed assets Interest-bearing Debt / + Interest and dividend income+Investment gains (loss) from the equity method TOKYU EBITDA Multiple (Reference indicator) (%) 6.2 (times) ROE Plan 5.8 11.2 9.8 10.6 5.7 5.6 5.5 8.1 Plan 8.0 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 3 Position of the FY2018-2020 Management Plan FY2022 100th anniversary of the founding of FY2018 SHIBUYA STREAM. to be opened TOKYU CORPORATION FY2010 Tokyu Capitol Tower opened FY2019 SHIBUYA SCRAMBLE SQUARE East building Sotetsu-Tokyu direct train to be opened Tama-plaza Terrace wholly opened SHINJUKU TOKYU MILANO Futako tamagawa Rise phase I opened to be opened Complete installation of platform doors redevelopment to be opened FY2012 Shibuya Hikarie opened (Toyoko, Den-en Toshi, and Oimachi Lines) FY2027 SHIBUYA SCRAMBLE SQUARE to be Mutual direct train service between MINAMIMACHIDA GRANDBERRY PARK opened wholly Toyoko Line and Tokyo Metro Commercial Complex to be opened Fukutoshin Line started FY2020 Tokyo Olympic, Paralympic Games FY2015 Futako-tamagawa Rise phase Ⅱ opened FY2016 TOKYU CORPORATION entered electric power retail business and airport operation business FY2017 SHIBUYA CAST. opened JUMP! HOP! STEP! Medium-term Medium-term Medium-term Management Plan Management Plan Management Plan 2012-2014 2015-2017 2018-2020 Period when we will steadily push ahead with large-scale development projects and build a foundation for the next 100 years. Period when we will evolve into the Tokyu Group that continuously creates “new added value.” 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 4 II. Long-Term Vision, Long-Term Corporate Strategy & Business Environment 5 Long-Term Vision*1 & Long-Term Corporate Strategy*2 ■ Long-Term Vision (What we want to be in 2022*3) - Maintain focus on TOKYU railway area We will create; The Best Place to Live: TOKYU railway area The Best Place to Go: Shibuya The Best Place to Work: Futako-Tamagawa Long-Term Vision - Become a strong business group as “one TOKYU” ■ Long-Term Corporate Strategy Companywide strategy developed to achieve the Long-Term Vision and to Long-Term attain sustainable growth Corporate Strategy Long-term Profit expansion and capital efficiency improvements direction on back of return to sound operations Overall Enhancing TOKYU area value strategy - Urban development that is one-step ahead of the times, etc. Medium-term Management Plan - Urban development taking into account local characteristics - Urban development that addresses diversified lifestyle & workstyle Expanding TOKYU share Expansion outside by focusing on our customers Tokyu railway area & new business development - Widen base for TOKYU point system, etc. - Actively enter into new fields of *1: Formulated in 2012 *2: Formulated in 2015 - Increasing customer’s use of Tokyu business, etc. *3: 2022 will mark the 100th anniversary of the founding of TOKYU CORPORATION 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 6 Our Business Environment 2. Changes in consumer behavior and 1. Demographic changes customer contact points Regional population gap Changes in consumer attributes and lifestyles Serious labor shortages Rise of e-commerce Increase in momentum for workstyle reforms Expanding use of Big Data 3. New business opportunities emerging 4. Competition in the global arena Infrastructure development is focused in the heart of Tokyo Sharp growth in markets in Asia Preparation for the 2020 Tokyo Summer Rapid increase in competition between Olympic, Paralympic Games/special wards international cities Growth of inbound traffic Improvement of competitiveness of Tokyo Advances in technology 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 7 Demographics in the TOKYU Area ・In the TOKYU area, the population peak is expected to move back from the existing prediction by about 15 years. ・Meanwhile, the working-age population has begun decreasing in the suburbs. Population in 17cities and wards along TOKYU lines (Thousands) 5,700 Latest forecast 5,600 (Based on the 2015 Population Census) 5,500 Peak 5,400 2035 Actualvalues 5,300 Peak Previous forecast 5,200 2020 (Based on the 2010 5,100 Population Census) indicates expected peak 5,000 4,900 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Based on the 2015 Population Census: Calculated independently in cooperation with Japan Based on the 2010 Population Census: National Institute of Population and Social Security Transport Research Institute (2017 estimate) Research (2013 estimate) 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 8 III. Basic Policies in the FY2018-2020 Management Plan 9 Basic Policies and Key Initiatives “Make the Sustainable Growth” Basic Policies ■Sustainable “urban development” ■Sustainable “corporate development” ■Sustainable “HR development” Key Initiatives (i) Tirelessly pursue “safety,” “security” and “comfort.” (Strengthen core railway business.) (ii) Increase SHIBUYA’s global appeal. (Realize “Entertainment City SHIBUYA.”) (iii) Continuously improve the TOKYU area’s value and life value. (Demonstrate Group’s all-round strength.) (iv) Expand business through strategic alliances. (Pursue collaborative creation with partners both inside and outside the Group.) (v) Make progress on workstyle innovation. (Deploy TOKYU workstyle reforms.) 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 10 Basic Policies Sustainability in Three Areas Sustainable “urban development” Sustainable “corporate development” Sustainable “HR development” Transportation Real Estate Support for HR development in society Life Service Hotel and Resort Development of Den-en- Redevelopment of chofu and Senzoku Futakotamagawa Development of an environment that enables workers to shine ■Perspective on society: ■Perspective on society: ■Perspective on society: Rise to the challenge of new types of urban Continue to provide added value to Support HR development in society through development and continue to focus on stakeholders (customers, shareholders, childcare, education and cultural activities. urban development and regeneration. business partners, etc.). ■Perspective within the organization: ■Perspective within the organization: ■Perspective within the organization: Develop management human resources, Inherit the urban development DNA that Achieve business growth by adapting to the foster a climate for the creation of has flowed through our veins for 100 years. changing environment and social needs. innovation, hand down technology, and strengthen diversity and health management. Material Sustainability Themes (Materiality) Quality of Living Safety & Security Environment Urban HR Development Development Low-carbon, Corporate Governance & Recycling-based Society Compliance 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 11 Management indices FY2018 FY2019 FY2020 FY2022 Targets Targets Targets Targets 220 billion yen TOKYU EBITDA 175 billion yen 184 billion yen 206 billion yen (200 billion yen) 97 billion yen 110 billion yen Operating Profit 77 billion yen 78 billion yen (90 billion yen) (100 billion yen) Interest-bearing Debt 5-6 times / TOKYU EBITDA 6.2 times 6.1 times 5.3 times Multiple (5-6 times) (Reference indicator) Return on Equity 7.2 % 7.2 % 8.4 % 9 % range (ROE) The figures in brackets are the figures under the Long-Term Corporate Strategy and previous management plan (formulated in 2015). 。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。。 Tokyu Corporation 12 Investment Plans in FY2018-2020 Capital expenditures & investments FY2018-2020 (cumulative) 520 billion yen Strategic projects 60 billion yen Investment Includes expansion of the in growth real estate leasing business and overseas development Shibuya (Mainly new projects) redevelopment 260 billion yen 120 billion yen Development of TOKYU area [Reference] FY2018-2022(cumulative) Investments for 80 billion yen Strategic projects existing business 75 billion yen Shibuya redevelopment 260 billion yen 135 billion yen Breakdown of Development of Transportation growth investments TOKYU area 160 billion