NEWS RELEASE

Dec 15, 2020 R&I Affirms A+/a-1, Stable: Odakyu Electric Railway Co., Ltd.

Rating and Investment Information, Inc. (R&I) has announced the following: ISSUER: Odakyu Electric Railway Co., Ltd. Issuer Rating: A+, Affirmed Rating Outlook: Stable

Commercial Paper (change to program): a-1, Affirmed

RATIONALE: Odakyu Electric Railway Co., Ltd. (Odakyu) has railway routes extending from in to the western part of and runs a broad range of businesses in areas along the routes. The company's operating region is favorable, with popular residential neighborhoods and famous tourist destinations such as and in its rail service areas. The transportation segment engaged mainly in railway business had been performing strong, benefiting from solid growth of commuter passengers as well as higher tourism demand for Hakone and Enoshima driven by an increase in inbound tourists. Since the beginning of 2020, however, revenues have dropped affected by the novel coronavirus outbreak. Faced with a notable decline in demand, the hotel and department store businesses have been also struggling to secure profits. While stable revenues and profits generated from the real estate business, which is centered on leasing operations, underpin the group's performance, they are not large enough to cover deficits of other businesses. As a result, the group forecasts a net loss for its consolidated earnings for the current fiscal year. That said, R&I expects the group to restore earnings to a certain extent by leveraging its strong business base once the pandemic is brought under control. Because earning capacity declined hit by the coronavirus pandemic in the midst of continued investments primarily in construction projects for building multiple double tracks, real estate and hotels, the financial burden has become comparatively heavy. With a redevelopment project in the West Exit district scheduled to start from FY2022 (the year ending March 2023), investments are expected to increase in the future. In a bid to address changes in the business environment, Odakyu has been working to reduce investments and reform the cost structure of each business. Given capital accumulation supported by favorable business results until the last fiscal year, concern over its capital is small even taking into account the projected net loss for the current year. Because restoring cash flow is the key to maintain creditworthiness, R&I will pay attention to progress of ongoing measures and the pace of earnings recovery of the entire group. The increase of the CP issuance limit this time is aimed to secure flexible means of financing. Judging from liquidity on hand, available committed lines of credit, etc., R&I believes that Odakyu will ensure sufficient liquidity for CP redemption even after the limit increase.

The primary rating methodologies applied to this rating are provided at "R&I's Basic Methodology for Corporate Credit Ratings" and "Railways". The methodologies are available at the web site listed below, together with other rating methodologies that are taken into consideration when assigning the rating. https://www.r-i.co.jp/en/rating/about/rating_method.html

■Contact : Sales and Marketing Division, Customer Service Dept. TEL.+81-(0)3-6273-7471 E-mail. [email protected] ■Media Contact : Corporate Planning Division (Public Relations) TEL.+81-(0)3-6273-7273 Rating and Investment Information, Inc. TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, https://www.r-i.co.jp Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are not statements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is not liable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html. © Rating and Investment Information, Inc. NEWS RELEASE

R&I RATINGS: ISSUER: Odakyu Electric Railway Co., Ltd. (Sec. Code: 9007) Issuer Rating RATING: A+, Affirmed RATING OUTLOOK: Stable

Commercial Paper ISSUE LIMIT (mn): JPY 40,000 --> 100,000 SUPPORT: Unsecured RATING: a-1, Affirmed

■Contact : Sales and Marketing Division, Customer Service Dept. TEL.+81-(0)3-6273-7471 E-mail. [email protected] ■Media Contact : Corporate Planning Division (Public Relations) TEL.+81-(0)3-6273-7273 Rating and Investment Information, Inc. TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are not statements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is not liable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html. © Rating and Investment Information, Inc.