Promotion of Tobu Group Medium-Term Business Plan

May 17, 2019

TOBU RAILWAY CO., LTD. Promotion of Tobu Group Medium-Term Business Plan

Status of Progress on Medium-Term Business Plan

1. Progress on Medium-Term Business Plan

・Asakusa/Tokyo Skytree area ・・・・・・P3 - 5

・Nikko/Kinugawa area ・・・・・・P6 - 8

・Railway business ・・・・・・P9 - 11

・Town development/lifestyle service business ・・・・・・P12 - 14

・Inbound ・・・・・・P15

・Hotel business ・・・・・・P16

2. Three Pillars of Management Strategy ・・・・・・P17 - 19

3. Revision of Target Management Indicators ・・・・・・P20 - 21 for Medium-Term Business Plan

Progress on Medium-Term Business Plan

Period covered by Medium-Term Business Plan

Plan FY2017 FY2018 FY2019 FY2020 FY2021 and later

Maximization of revenue through focusedinvestment in key areas Development of Kitajukken River waterfront space ●Opening of facility Asakusa/Tokyo (under elevated railway) ●Construction Skytree area Sumida River ●Completion pedestrian bridge concept commenced

● Construction of 2018.2 ●Opening of hotel Nikko/Kinugawa THE RITZ-CARLTON NIKKO Construction commenced ● ●2018.11 area SL operations 2017.8 ●Restoration complete SL launch of operations Launch of second SL restoration

Promotion of redevelopment project Discussion/coordination with area stakeholders/government officials for promotion of redevelopment ●Urban planning decision Ikebukuro area for west exit of Ikebukuro Station

Ginza/Yaesu/Coastal Construction of AC Hotels ● 2018.3 ●Opening of hotel

area by Marriott Tokyo Ginza Construction commenced further cultivationof businesses alongrailway lines Improvement of value alongrailway lines through Introduction of seating service Launch of operations for Hibiya Line through trains Improvement of Completion of double-track line between transportation Expansion of express operation ● Mutsumi and Sakasai, expansion of sections on URBAN PARK Line express operation sections services Introduction of new limited express for sightseeing Launch of operations

Construction of Wakoshi south ●Construction ●Opening of Facility development exit station building commenced station building

centered on stations Station store/building plan ●Opening of Kitasenju ●Shinkoshigaya VARIE ●Soka VARIE 2 ●Opening of Tokiwadai ●Opening of Kitasenju center zone Renovation of 4F/5F renovation Station North Exit stores South Exit stores Shimizu-koen Condominium/ ●Completion of ●Completion of ●Completion of Solaie ●Completion of Solaie Completion of ● ● detached houses ● Dokkyodaigakumae Completion of Nagareyama Solaie Katsushika Soka Matsubara City Nagareyama Otaka no Mori Provision of luxurious detached houses (2017-2020) Solaie Narimasu Kosuge Terrace condominium Otaka no Mori condominium ●Opening of Solaie ●Opening of Solaie I’ll ●Opening of Soka-city Takasago rental condominium lifestyle services Rental condominium I’ll Shimoakatsuka Nerima Kitamachi ●Opening of Shingashi Ekimae housing complex

●Opening of Kitasenju ●Opening of Hikifune ●Opening of Shin-Funabashi ●Opening of Funabashi Child-raising/senior care childcare facility Establishment of childcare facility childcare facility ●Opening of Minami-Sakurai childcare facility childcare facility lifestyle services

Group point ●Launch of new Group point

●Opening of Wakoshi/Asakusa/Kawagoe West Exit Expansion of the Multifaceted development ●Osaka hotel business of hotels ●Sapporo rebranding hotel plan

● Inbound Establishment of Further promotion of Group inbound activities Inbound initiatives Asia Sales Branch All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019 2 Promotion of Tobu Group Medium-Term Business Plan

Asakusa/Tokyo Skytree area

Integrated/ongoing town development Sustainable growth of Tokyo Skytree Town connecting two terminals and tourist areas

Launch of electronic billboard Regular holding of events to attract customers Opening of SKYTREE DISCO content at EKIMISE Illumination of bridge over Sumida River

Continuous tenant replacement

Collective expansion of duty Skytree admission price free counters Strengthening of mutual customer referral revision Introduction of Alipay and through further promotion of integration Free admission for toddlers WeChat Pay Present Construction of Development of Kitajukken pedestrian bridge beside River area through public- Enhanced marketing to Expansion of ticket types Sumidagawa Bridge private collaboration attract groups Strengthening of online Asakusa Tobu Hotel ticket sales Expansion of collaboration with domestic and international OTA

Aim for 4.5 million visitors to Tokyo Skytree Increased appeal as commercial TEMBO DECK facility

Town development in collaboration Consideration of Town development in collaboration Development under elevated with government redevelopment utilizing with government railway near Tokyo Skytree Station (renewal of urban functions) company-owned land (creation of urban area resistant to disasters)

Becoming Tokyo’s greatest tourist area

Town with new bridge and waterfront to promote integration of Asakusa and Tokyo Skytree

Pedestrian bridge project beside Development under elevated railway between Sumidagawa Bridge Asakusa and Tokyo Skytree Shortest distance between Asakusa and Tokyo New “waterfront town” surrounded by park and Skytree Town hydrophilic terrace Contribute to area revitalization as new lively facility connecting two tourist areas of Asakusa and Tokyo Skytree Town Community hostel mainly targeting inbound tourists with café, lounge, event space, and other facilities creating liveliness to open Commercial zone will have 12 sections (tentative)

Spring 2020 opening (planned) Illustration Outside of hostel (illustration)

Tokyo New liveliness from Skytree Asakusa human exchange Town

Commercial zone Commercial zone

Hostel zone

Future sales strategy of Tokyo Skytree Town Domestic-oriented efforts International-oriented efforts

■Establishment of attractive pricing ■Strengthening of online sales by linking ・ Revise prices of advance admission tickets (date- systems with overseas OTAs specific tickets) ■Strengthening of efforts to attract Chinese ・ Implement free admission for toddlers visitors Easy to make plans for going out! Free ・ admission Introduction of Alipay and WeChat Pay No waits! for toddlers ・Implementation of online/SNS ad campaigns, etc. ■Improvement of Tokyo Skytree name recognition on occasion of 2020 Olympics Easier to get Special lighting, laser mapping, etc. Support for family outings Cooperation utilizing Skytree Making Skytree a symbol of Japan ■Enhanced marketing to attract student groups Laser mapping ・ Infrastructure tourism to learn about Skytree as radio tower and emergency operation center FY2018 Results (Provision of educational material in Tokyo Solamachi Tokyo Solamachi average advance in cooperation with Chiba amount from each customer Institute of Technology) sales ・ Support for small groups through revision +3.6% +4.5% of number required for group rates (YoY) (YoY) ・ Implement group fare revision

Tokyo Skytree Making Tokyo Skytree a “mecca” of memories TEMBO DECK visitors 4.27 million

6 name) (tentative

CARLTON NIKKO CARLTON - a group company group a Summer 2020 opening 2020 Summer Making KANAYA Hotel Hotel KANAYA Making Luxury hot spring inn spring hot Luxury Fufu” “Nikko 2020 spring in open to THE RITZ THE

nikko Station) nikko services - nikko Station Tourist Tourist Station nikko Center/Rinnoji) - sales machines machines sales Transition to resort that can meet diverse meet diverse tourist demand (Tobu friendly menus, etc.) menus, friendly for receiving Muslims receiving for (Establishment of prayer prayer of (Establishment (Tobu Preparation of environment environment of Preparation Multilingual admission ticket admission Multilingual Launch of casual sightseeing sightseeing casual of Launch rooms, development Muslim of development rooms, Concierge Nikko of Introduction

sando sando -

Development of new foods new of Development restaurant facilities restaurant Opening of official official of Opening Instagram account Instagram camera community camera up event with domestic domestic with event up Construction of Nishi of Construction round resort -

- Tie

, a new new a ,

motorboat

of Nantai of

up events up Nikko/Kinugawa area Nikko/Kinugawa - and nature are in harmony arein nature and

dream car dream Transition to year

tie

SL shore of Lake Chuzenji Lake of shore Lake Chuzenji Lake Introduction of second SL second of Introduction pleasure boat on Lake Chuzenji Lake on boat pleasure Commissioning

Opening of new port on southern southern on port new of Opening passengers Launch of SL of Launch Enhancement of outdoor activities outdoor of Enhancement Introduction of Taiju steam locomotive locomotive steam Taiju of Introduction Total of 171,000 171,000 of Total comeback operations comeback

type resort

YoY

Term Business Plan Business Term

Total of around around of Total Commissioning of of Commissioning 2 million passengers million 2 Revaty Limited Express Limited Revaty

Become world’s only international eco resort where history, tradition culture, history, whereresorteco international only Become world’s foreign tourists foreign congestion measures congestion Consideration of MaaS of Consideration electric buses in Tochigi in buses electric Ticket sales +6.0% sales Ticket of secondary transportation, transportation, secondary of Consideration of enhancement enhancement of Consideration Renewal of discount passes for for passes discount of Renewal SQUARE Station SQUARE including cooperation with traffic traffic with cooperation including

Tokyo metropolitan metropolitan Tokyo Transition to stay

Cooperation with consideration of introducing introducing of consideration with Cooperation

New highway bus between between bus highway New Opening of new TOBU WORLD WORLD TOBU new of Opening area/Airport and Nikko area Nikko and area/Airport Introduction of new limited express for sightseeing for express limited new of Introduction

Medium Promotion of Tobu Group Tobu of Promotion

Improved ease of movement through enhancement of environment for taking in tourists (Nikko/Kinugawa area)

Trend in departures and arrivals between Tobu Nikko Improved convenience of area Expansion of sightseeing tours and Kinugawa-onsen transportation and time in area People Enhancement of tourist content Highest number of visitors ever 130,000 120,000 Tobu Group 110,000 1.7x FY2018 operating revenue 100,000 from Nikko/Kinugawa area 90,000 80,000 Approx. ¥10.7 billion 70,000 (Up 0.4% YoY) 60,000 50,000 40,000 2010 2011 2012 2013 2014 2015 2016 2017 2018

Trend in number of visitors to Nikko and inbound ticket sales Ten No. of thousand tickets visitors Promotion of movement 1,400 Highest number 90,000 日光市入込客数Number of visitors( to左軸 Nikko) City (left) of visitors to between Nikko ever 80,000 Number of inbound 売上枚数 pass (sales右軸 (right) ) areas 70,000 1,200 60,000

50,000 1,000 40,000

30,000 800 2.7x 20,000 10,000

Expansion of tours to Lake Chuzenji/Oku-Nikko area

Commercialization of Lake Chuzenji/Oku-Nikko area appeal

Kinugawa-onsen Station Enhancement of content Enhancement of food Catering to diverse needs

・Commissioning of Nantai, a ・KANAYA Hotel ・Communication of new pleasure boat Management of British information via SNS ・・ Akechidaira observation area Embassy Villa Tea Room Construction of THE RITZ- Tobu ・Opening of new pleasure boat CARLTON NIKKO KinugawaW orld Square- route ・Improved convenience of Old Nikko ・Enhancement of activities secondary transportation onsen area Mt. Nikko city area Shirane Lake Chuzenji/OkuNikko Astraea Hotel -Nikko area Senjogahara Promotion of further movement between KANAYA Hotel Expansion of tours to Management of British areas LakeNikko Chuzenji/Oku-zan -Nikko area Embassy Villa Tea Room Mt. Nantai Rinnoji Temple Chuzenji KANAYA Hotel Summer 2020 opening THE RITZ-CARLTON NIKKO New route for Tobu Nikko Lake Chuzenji motorboat Station Shimo- Kegon Falls Nikko KANAYA Hotel To open June 2019 (planned) imaichi area Commissioning of Nantai, a new Shimo-imaichi pleasure boat Station Akechidaira observation Cooperation with countermeasures area for congestion in Nikko area Steadily expand content to become year-round resort to stay and aim for operating revenue of 16 billion yen in Nikko/Kinugawa area

Promotion of Tobu Group Medium-Term Business Plan

Railway business Realization of more appealing tourist Realization of more comfortable Realization of safer

transportation commuting environment transportation

Launch of Taiju steam Renovation of Shimo- Commissioning of Revaty Ryomo Station building improvements locomotive operations imaichi station building Limited Express All trains stop at Kuki

Systematic installation Designated seats on TJ Liner of platform doors

Improvements Promotion of Showa retro Realization of seamless at Takayanagi Station feel on Kinugawa Line transportation Only SL operated by Launch of liner Get to destination major private railway operations to without changing trains Installed at 11 stations multiple destinations by fiscal 2020 TJ Liner up train seat load factor Launch of Kawagoe limited +10 percentage points express operations (March 16-31, 2019 YoY comparison) Urban planning decision Launch of service at Satte on overhead crossing Station/Ogose Station near Kasukabe Station Present Introduction of new seating Expansion of express sections Promotion of continuous service on through trains to on URBAN PARK Line Strengthening of overhead walkways Launch of second SL operations and from Hibiya Line terrorism Fastest time from downtown countermeasures ahead of Olympics Ikebukuro-Kawagoe As little as 26 minutes

Opening of new station between Expansion of operating lines Tobu-Takezawa and Obusuma and sections Consideration of new Consideration of collaboration Improvement of Tokyo Introduction of new limited Consideration seating service on with other companies’ lines Skytree Station express for sightseeing of MaaS Tojo Line (Support for lines planned by Council of Transport) terminal functions Aiming to achieve number one environment for commuting and tourism/transportation services among private railways All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019 9 Promotion of Tobu Group Medium-Term Business Plan

Aiming to create number one environment for commuting among private railways and most comfortable line in Japan to live along Introduction of new seating service on Hibiya Line through trains (FY2020)

Higher demand for comfortable Consider commuting improving speed Increase in number of company- of Hibiya Line led child care facilities inside of through trains downtown workplaces

New 70090 long/cross seat conversion train Exterior of 70090 (6 cars per train/42 cars in total) train (illustration)

Provide comfortable transportation, including seated commutes to downtown and commutes with children Inside car (illustration) Promoting efforts to improve convenience of access to downtown and support child-rearing

Opening of new station in collaboration with Honda Motor Company

Yorii To Yorii

New station Obusuma Station

Ogawamachi Honda Motor Company Yorii Plant Location of new station

Kawagoe

Wakoshi Honda Motor Company Ogawa Plant Tobu-Takezawa Ikebukuro Station To Ikebukuro

Opening of new station near Honda Motor Company plant ・Increase in number of commuters with expansion of ・Reduce environmental load through use of trains and buses business at Honda Motor Company’s Yorii Plant ・Smoother traffic flow on nearby roads ・Concerns over increase in traffic on Route 254 as a result ・Revitalization of towns of Ogawa and Yorii through increased opportunities to ride trains

Development ・Consider promoting further use of trains after opening ・Further strengthen collaboration with companies/organizations along railway line, etc.

Town development and lifestyle service business Developing station space open Creation of environment along railway line where people want to to the town move to and stay Condominiums Detached houses Attract child care facilities Promotion of renovation inside near stations stations and station buildings (Shinkoshigaya VARIE/ Soka VARIE)

Solaie Shimizu-koen Make TOBU STORE Solaie Katsushika Kosuge Urban Park Town wholly-owned subsidiary Promotion of EQUiA as Renovation of Shimoakatsuka commercial facility Station building inside stations Solaie I’ll Shimoakatsuka Development of satellite offices (Fujimino, Dokkyodaigakumae, etc.)

Opening of Minami-Sakurai/ Solaie Soka Matsubara Shin-Funabashi child care facilities City Terrace Present EQUiA Hikifune grand opening Total of 14 facilities

Rental condominium with child- Introduction of new group points Development of rearing support EQUiA Tokiwadai Solaie I’ll Nerimakitamachi TOBU STORE on railway line student dormitories Solaie Nagareyama Otaka no Mori 20 facilities under Development of residences Development of rental EQUiA brand by 2020 Station building for senior citizens condominium for singles Solaie City project at south exit (Iwatsuki, etc.) (Shingashi, Soka-city, Takasago, The Park/The Garden of Wakoshi Station etc.) (Dokkyodaigakumae)

Development plant for Ikebukuro, Takenotsuka, Strengthening of town Consideration of company Strengthening of collaboration Kasukabe, Tobu-dobutsu-koen, etc. management initiatives housing business with municipalities Becoming top railway line for comfortable living for three generations All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019 12

of validity, validity, of

communication Strengthening Strengthening of

use railway line point service use railway point line -

to -

May 2020 (tentative) 2020 May

1.6million members,10billion yen increasesales in

convenience Improvement Improvement of

Term Business Plan Business Term - Provide Provide service that is easy to use from customer’s standpoint and expand use Acquire younger members and others who don’t have credit cards

Pay directly with points, use points for ticketless services, extend period extend services, ticketless for points use points, with directly Pay expand Group member stores member Group expand  New membership structure in which points accumulate even when when even accumulate points which in structure membership New using cash or PASMO or cash using  Distribution Distribution of coupons app, via real time communication utilizing functionality, GPS etc. Point revision (improved convenience) (improved revision Point ・ [STEP 3] Further increaseappealinFurtherpoint 3]service of [STEP [STEP 1] Launch of service 1] Launchnew [STEP [STEP 2] Strengthening of communicationGroup)Strengtheningof promoteuse 2]of (Marketing to [STEP ・ New app membership (expansion of membership) of (expansionmembership Newapp ・

membership Expansion Expansion of

Numerical years): (inaboutfive targets

Group revenue toolto increase service as Group pointnew Developing

Aiming to create most advantageous easy and advantageous most create to Aiming

Medium

Realization of lifestyle that yields time to spare through effective use of time Develop new store format for Tobu Store that addresses needs of customers primarily inside and under stations Utilize Group’s expertise in commercial management, real estate utilization, etc.

Concept

Brand name of new store format “Tobu store Fresh ＆ Quick” ・New format that focuses on side dishes and carries fresh items not carried at convenience stores 2 ・Small store of around 300m with focus on food Tobu store Fresh & Quick (illustration)

Future development

May 31, 2019 Opening of first store of new format at Hikifune Station Consider opening stores in each area along line, including Kitasenju and Shingashi EQUiA Hikifune (illustration) Aiming to increase synergy with new Group point service and expand revenue with strategic openings inside and under stations

Maximization of inbound revenue by promoting efforts to attract customers to Group

Promotion of efforts to attract inbound customers Trend in inbound revenue

■Promote efforts to attract in Lake Chuzenji and Oku- Nikko areas in addition to Nishaichiji area of Nikko Tobu Group inbound operating revenue ・Collaboration with Michelin Green Guide (a first for railway operators) FY2018 Results ・Publishing in NATIONAL GEOGRAPHIC TRAVELLER ・Renewal of discount passes for foreign tourists ¥13.1 billion + 25.0% (YoY)

[YoY comparison of number of users] Target of Medium- Discount passes +6.0% Trend in inbound revenue Term Management Plan Lake Chuzenji motorboat/ Billion yen ¥14 billion Akechidaira Ropeway +12.2% 14.0 13.1 billion 12.0 ■Attract customers to Group facilities 10.5 billion © MICHELIN outside railway lines 10.0 ・Conduct familiarization trips for Group facilities in Hokkaido 8.0 billion ・Communicate information on Zao area utilizing 8.0 frost-covered trees 6.0

[YoY comparison of number of users] 4.0 Zao Ropeway +49.5% SENDAI KOKUSAI HOTEL +232.6% 2.0 Hokkaido area +42.0% Zao Ropeway 0.0 (Sapporo Tobu Hotel, Yuni Tobu Golf Club, Yuni Spa, Yuni Garden) 2016 2017 2018 2019 2020

Results Target of Medium-Term Management Plan Spread appeal of various tourist attractions to revitalize area

Maximization of hotel business revenue by capturing robust demand Improving product value at existing hotels

Guest room (illustration) ■Rebrand Sapporo Tobu Hotel as Fairfield by Marriott

Partner with Marriott International, a leading global hotel chain, to capture robust inbound demand in Sapporo and work to improve profitability. Remodeling to begin in October 2019 for spring 2020 opening Fairfield by Marriott is a brand managed by Marriott International with more than 1,000 locations worldwide. Warm breakfasts, elaborately designed guest rooms, and other offerings help satisfy various needs, from business to pleasure. This will be the first hotel in Japan under the brand. Lobby (illustration)

Promotion of new hotel development Main hotels FY2018 Results No. of guest Overview of accommodation- Hotels under construction Opening rooms type hotels ■ Occupancy rate (Wakoshi, Kawagoe, Asakusa) AC Hotels by Marriott Tokyo Ginza Summer 2020 296 Ginza 95.4% (-0.1%) Hotels designed for comfort with the Kinshicho 87.9% (+2.8%) THE RITZ-CARLTON NIKKO Summer 2020 94 features of traditional accommodation- Wakoshi Station South Exit type hotels plus a little extra, such as Station Building Tobu Hotel Narita 81.3% (+4.3%) lobby/lounge (illustration) Wakoshi Station South Exit Station Building community lounges and bench sofas Spring 2020 158 ■ Tobu Hotel and business desks in the guest rooms ADR Spring-Summer Ginza ¥24,000 (+6.9%) Tobu Hotel Kawagoe Station West Exit Ekimae 168 [Total annual revenue from five 2020 hotels under construction] Kinshicho ¥15,500 (+2.2%) Asakusa Tobu Hotel Summer 2020 253 Around ¥8.5 billion (average) Narita ¥9,500 (+5.0%)

*Wakoshi, Kawagoe, and Asakusa are tentative names *YoY comparison in parenthesis Guest room (illustration) All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019 16 Promotion of Tobu Group Medium-Term Business Plan

Promotion of growth investment

Total investment: 200 Approx. ¥177 billion Acquisition of shares (including shares) 180 Strategic investments for growth 160 Investments in maintenance and updates TOBU STORE Share acquisition TOBU TOWER SKYTREE 140 Share acquisition

120 Total investment: 100 Approx. ¥81 billion (including shares)

THE RITZ-CARLTON NIKKO Soka VARIE renovation 60 construction

0 AC Hotels by Marriott Tokyo Ginza Wakoshi Station south exit station FY2017 FY2017-FY2018 construction building construction

Maintenance of financial strength

Shareholders equity ratio [Medium-Term Business Plan 2017-2020] Interest-bearing debt balance (Billion yen) Interest-bearing debt balance (forecast) 8,500850 Interest-bearing debt balance Interest-bearing debt/EBITDA (Medium-Term Business Plan) multiple of around 6.5x-7x

28.1% 27.6%

8,000800 26.4% 24.6% 23.5%

¥830.0 ¥823.5 ¥799.7 ¥790.3 ¥793.1 ¥809.6 ¥819.9 billion billion billion billion billion billion billion 7,500750 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 forecast Medium-Term Business Plan Interest-bearing (revision) debt/EBITDA 7.9x 7.0x 6.6x 6.6x 6.6x 6.7x 6.5x multiple

Further enhancement of shareholder return

[Medium-Term Business Plan 2017-2020]

Establish a total return ration of

18,000 around 30% for the period average

16,000 of the Medium-Term Business Plan while keeping a basic policy of 14,000 Amount of treasury shares acquired ¥10 providing steady dividends

12,000 billion Total annual dividend

10,000 Dividend per share ¥40.0

8,000

6,000 ¥32.5 ¥30.0 ¥30.0 ¥35.0 ¥35.0*2

4,000

2,000 ¥6.4 ¥6.4 ¥7.0 ¥7.4 ¥7.4 ¥8.5 billion billion billion billion billion billion

0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 forecast

*1 Dividend per share reflects the impact of the reverse stock split (5 for 1 basis, ordinary shares) implemented on October 1, 2017. *2 If the proposal on appropriation of retained earnings is approved at the Ordinary General Meeting of Shareholders on June 21, 2019

Revision of FY2020 target management indicators

FY2020 FY2020 FY2017 FY2018 FY2019 (When Change (Revision) Main factors behind increase Results Results Forecast established) (A-B) (B) (A)

Revenue from operations TOBU STORE made into wholly-owned subsidiary (billion yen) 569.5 617.5 667.3 590.0 675.4 85.4 Favorable railway revenue Operating income TOBU STORE made into wholly-owned subsidiary (billion yen) 66.6 67.3 65.0 67.5 68.5 1.0 Recurring income (billion yen) 62.3 63.0 59.0 60.7 61.7 1.0

Profit attributable to TOBU STORE made into wholly-owned subsidiary owners of parent 36.0 28.0 38.0 38.6 40.0 1.4 TOBU TOWER SKYTREE made into wholly-owned (billion yen) subsidiary Depreciation (billion yen) 52.5 53.5 56.1 55.1 57.3 2.2

EBITDA (billion yen) 119.1 120.8 121.1 122.7 125.8 3.1

Interest-bearing debt Acquisition of TOBU STORE and TOBU TOWER (billion yen) 790.3 793.1 809.6 794.6 819.9 25.3 SKYTREE shares Interest-bearing debt/EBITDA multiple (x) 6.6 6.6 6.7 6.5 6.5 0.0

ROE (%) 8.3 6.2 8.0   

Capital expenditures Revision of capital investment plan (billion yen) 73.9 73.9 100.7 67.4 81.1 13.7

Consolidated management indicators

[FY2020]

Target management indicators Before revision After revision Operating income (billion yen) 67.5 68.5 Profit attributable to owners of parent (billion yen) 38.6 40.0

Reference indicators Before revision After revision

EBITDA (billion yen) Approx. 120.0 Approx. 125.0

Interest-bearing debt/EBITDA multiple (x) 6.5-7.0x No change

ROE (%) Around 7.5% No change

The Company’s profit plans and other goals set forth in this document are based on projections of industry trends related to the business of the Company and Group companies and other such factors that impact business results, including the economy in Japan and other countries, which are made based on the information currently available to the Company. As such, the reader is asked to note that actual business results may differ from the forecasts within this document due to changes in the business environment and other such factors.