TOKYU FUDOSAN HOLDINGS 2018 Integrated Report

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TOKYU FUDOSAN HOLDINGS 2018 Integrated Report TOKYU FUDOSANHOLDINGS 2018 IntegratedReport 2018 Integrated Report Tokyu Fudosan Holdings Corporation Group Finance Department, Investor Relations Group Planning Policy Department, CSR Promotion Group This product is made of FSC®-certifi ed and This report uses ink derived from https://www.tokyu-fudosan-hd.co.jp/english/ other controlled material. non-edible plants. We go beyond the bounds of physical structures to propose and create lifestyles. e Tokyu Fudosan Holdings Group has always eagerly taken on new challenges, starting with the development of the community of Den-en Chofu. It’s in our DNA. We will continue to leverage that “Challenging DNA” to deliver new value to communities and society through the proposal of new home, work and play styles. Tokyu Group Slogan Tokyu Fudosan Holdings Group Ideal – The Tokyu Group Toward a Beautiful Age A corporate group that continues to create value We go beyond the bounds of physical structures to Tokyu Group Philosophy propose and create new lifestyles We hold this philosophy in common as we work together to create and support the Tokyu Group. Founding Spirit Mission Statement We will create a beautiful living environment, where each person can pursue individual happiness in a harmonious society. Challenging DNA Management Policy Work independently and in collaboration to raise Group synergy and establish a trusted and beloved brand. The Tokyu Fudosan Holdings Group originated 100 years ago in • Meet current market expectations and develop new ones. 1918 with the development of Den-en Chofu based on the garden • Manage in harmony with the natural environment. city concept, with the aim of developing the ideal community at a • Pursue innovative management from a global perspective. time when there was a housing shortage. With this DNA of taking on challenges, or “Challenging DNA,” that we have inherited, we Eiichi Shibusawa, who • Value individuality and make the most of each person. are sincerely working toward solutions to social problems with an established the Den-en Through these means, we will fulfill our corporate social responsibilities. enterprising spirit, and will go beyond the bounds of physical Toshi Company, the origin structures to propose and create new lifestyles. of the Group, in 1918. Guidelines for Action Fulfill your responsibilities. Collaborate to enhance each other’s abilities. Reinvent yourself with a global awareness. Contents Value Creation of the Tokyu Fudosan Holdings Group: Wellness Segment 34 Editorial Policy The History of Our Business and Social Issues 4 Tokyu Hands Segment 35 The Tokyu Fudosan Holdings Group seeks to contribute to a sustainable society by solving social issues through its businesses. The Group Value Creation Process 6 Innovation Business Segment 36 issues integrated reports to provide stakeholders with a better overall understanding of how it creates value in all of its business activities. This Our Three Core Strengths 8 Synergy among Our Businesses 37 report discloses the Group’s medium- and long-term management policies and business strategies as well as financial and non-financial data Financial and Non-Financial Highlights 10 ESG Management: prepared in accordance with the international integrated reporting framework of the International Integrated Reporting Council (IIRC) and the Materiality Identification Process 13 Work Style Reforms 38 Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation formulated by the Ministry of Medium-Term Management Plan Based Social Needs 41 Economy, Trade and Industry (METI). For more detailed financial and CSR information, please refer to the Company’s website. on Materialities 14 Environment 42 Message from the President 16 Corporate Governance 44 Investor Relations Information https://www.tokyu-fudosan-hd.co.jp/english/ir/ Feature: Initiatives to Address Social Issues Directors, Audit & Supervisory Board Members and New Value Creation and Managing Officers 49 CSR Information https://tokyu-fudosan-hd-csr.disclosure.site/en 1. Greater Shibuya Area Concept 22 Messages from Outside Directors 52 2. Senior Housing Business 26 Financial Section: 3. Renewable Energy Business 27 Financial Analysis 54 Value Creation Strategy 28 Consolidated Financial Statements 56 Note on Forward-Looking Statements Business Strategies: Notes to the Consolidated Financial Statements 65 The forecasts and other forward-looking statements in this report are based on currently available information and certain Urban Development Segment 30 Independent Auditor’s Report 91 assumptions determined as rational. Consequently, the statements herein do not constitute assurance regarding actual results by the Company. Actual performance may significantly differ from these forecasts due to various factors in the future. Residential Segment 31 Major Business Areas 92 Property Management Segment 32 Corporate Data/Stock Information 94 Real Estate Agents Segment 33 2 TOKYU FUDOSAN HOLDINGS Integrated Report 2018 3 Value Creation of the Tokyu Fudosan Holdings Group The History of Our Business and Social Issues Historical Backdrop andSocialIssues Historical Backdrop 1950s-1960s 1970s-1980s 1990s-2000s 2010s The origin of the Tokyu Fudosan Holdings Group was the development of the town of Den-en Chofu, which From reconstruction Drastic change in the world Post-bubble period Toward a sustainable became the model for modern suburban community to growth economy and advancement and diversification of society Our Three Core development in Japan. We later created new of living standards lifestyles Japan rebuilt its economy, Under globalization, a paradigm Strengths businesses and have grown by addressing social boosted by special demand from The period of rapid economic Due to prolonged economic shift has taken place with both the issues and needs. One constant through the years has the Korean War, and completing growth in Japan came to an end stagnation, coupled with the public and private sectors looking the postwar reconstruction, with the oil crisis. In Japan, which declining birthrate, aging to achieve sustainable growth. been our dedication to solving social issues through ushered in a period of rapid had become an economic population and a drop in land Further advances in information the creation of new value. The history of our business is economic growth. However, the superpower, people gained prices, people began to return to technology are predicted to bring Diverse assets housing shortage in urban areas material well-being and began to inner cities. Lifestyles and values major innovations to people’s lives, and customers proof that we have done just that. became a serious problem due to seek spiritual enrichment. As a became more diverse as a result society and the industrial structure. population concentration in the result, values in various realms, of the advancement and diffusion three major metropolitan areas including society, culture and of information technology and the and increasing urban sprawl. lifestyle diversifi ed. tide of globalization. Our Founding Spirit Expertise and group structure that produce unique Challenging businesses DNA 1950s-1960s 1970s 1980s 1990s-2000s 2010s- Early focus on urban Pursuing business Enriching living through Creating a new urban Leveraging the Group’s development in Shibuya, diversifi cation from an early large-scale new town development business in combined strengths to Daikanyama and stage to become a corporate development and resort the post-bubble era propose new lifestyles A culture that neighboring areas group that creates new business We strengthened our revenue base by Shifting to a holding company structure leverages and Tokyu Land Corporation was formed in lifestyles In a time when people sought spiritual shifting our business focus from enabled us to propose new lifestyles by Addressing Social Issues through OurBusinesses SocialIssuesthrough Addressing passes on our 1953 by splitting off the real estate division In response to changing times and enrichment, we developed large-scale built-for-sale homes to leasing, which is leveraging the Group’s combined of Tokyu Corporation. It supplied housing social needs, we quickly expanded into new towns in harmony with the natural less affected by economic cycles. strengths. Our aim was to provide new “Challenging DNA” to alleviate the shortage, and commercial real estate-related businesses with the surroundings and began full-scale ●1993 value through Group synergy. facilities to support people’s daily lives, aim of conducting urban development development of environment-conscious Opening of the fi rst Tokyu Stay hotel: ●2013 mainly in the Shibuya area, its base. to meet needs for comfortable homes resort towns. Urban-style hotels that can be used Establishment of Tokyu Fudosan ●1955 and enriched lifestyles, and to create ●1982 for long-term stays Holdings Corporation: Merger of Tokyu Completion of Daikanyama Tokyu new lifestyles. Launch of the Asumigaoka New Town ●1993 Land Corporation, Tokyu Community Corporation and Tokyu Livable, Inc. Apartment: Japan’s fi rst luxury ●1970 business: New urban development in Opening of Setagaya Business apartment complex development Establishment of Tokyu Community harmony with natural surroundings Square: Tokyu Group’s fi rst for foreign nationals Corporation: Expansion into the ●1984 super-high-rise offi ce building Future ●1958 property management business to Opening of Palau Pacifi c Resort: ●1999 Completion of Tokyu Skyline: The create comfortable
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