Information for Investors Results for the Second Quarter of FY2020

November 9, 2020 Actual Performance in Second Quarter of FY2020 Overview

Second Second quarter of quarter of Forecast Millions of yen FY2019 FY2020 at Jul. 2020 Change (actual) (actual) Change

Revenue from 261,766 167,645 △ 94,120 △ 36.0％ 168,700 △ 1,054 △ 0.6％ operations

Operating income 25,657 △ 19,193 △ 44,851 ー △ 25,800 ＋ 6,606 ー

Ordinary income 24,907 △ 22,049 △ 46,957 ー △ 28,900 ＋ 6,850 ー

Net income attributable 16,598 △ 21,280 △ 37,878 ー △ 25,500 ＋ 4,219 ー to owners of parent

Capital investments 40,672 27,752 △ 12,920

Depreciation 24,012 25,032 ＋ 1,019

Interest-bearing debt 741,027※ 863,023 ＋ 121,995 * As of ending FY2019

Revenue from （Unit：Millions of yen） operations

＋ 90 ＋ 376 （△）Work commuters （＋）Resort hotels in （＋）Hakone Area Hakone △ 1,278

△ 2,194 ＋ 1,952 （△）Department Store （＋）Commercial facilities in suburban areas 168,700 △ 1,054 167,645 Forecast Transportation Merchandising Real Estate Adjustments Results ７月時点予想at Jul. 2020 運輸流通不動産 Otherその他 Businesses 調整額実績

Operating income （Unit：Millions of yen）

＋ 6,606 △ 25,800 △ 19,193 （＋） Decrease in costs （＋） Decrease in costs （△）Decline in revenue ＋ 1,013 △ 74 （＋） Decrease in costs ＋ 1,148 ＋ 2,280 （＋） Decrease in costs ＋ 2,238

Forecast Transportation Merchandising Real Estate Other Businesses Adjustments Results ７月時点予想at Jul. 2020 運輸流通不動産その他調整額実績

Railways (Results of Railway Business of Merchandising Odakyu Electric Railway Co., Ltd) （Department stores・Stores） (%, year-on-year) (%, year-on-year) 10.0 10.0

0.0 0.0

△ 10.0 △ 10.0

△ 20.0 △ 20.0

△ 30.0 △ 30.0

△ 40.0 △ 40.0

△ 50.0 △ 50.0

△ 60.0 △ 60.0 Shinjuku Store 新宿店（店頭）Over-the-counter △ 70.0 Work △ 70.0 通勤定期commuters 町田店Machida Store Non- ふじさわFujisawa △ 80.0 定期外commuters △ 80.0 ストア既存店総旅客Total Existing stores △ 90.0 △ 90.0 2月 3月 4月 5月 6月 7月 8月 9月※ Feb2月 Mar3月 Apr4月 5May月 6Jun月 7Jul月 Aug8月 9Sep*1月※ Feb Mar Apr May Jun Jul Aug Sep*2 Shinjuku Store 通勤定期Work 新宿店（店頭）Over-the-counter △ 20.7 △ 45.1 △ 84.6 △ 77.9 △ 33.8 △ 41.4 △ 38.4 △ 47.2 commuters 2.7 △ 8.7 △ 17.0 △ 22.0 △ 16.4 △ 18.2 △ 18.2 △ 30.0 定期外Non- 町田店Machida Store 7.1 △ 26.0 △ 75.9 △ 69.0 △ 5.8 △ 11.1 △ 12.2 △ 24.4 commuters △ 2.5 △ 33.6 △ 69.3 △ 66.2 △ 35.7 △ 34.1 △ 34.0 △ 26.0

ふじさわFujisawa △ 4.3 △ 20.5 △ 55.2 △ 52.9 △ 9.0 △ 12.2 △ 12.1 △ 20.4 総旅客Total 0.5 △ 23.9 △ 51.1 △ 50.3 △ 31.5 △ 30.4 △ 27.0 △ 35.2 ストア既存店 *1列 In2 September, rebound from the impact of the advanced purchasing of commuter passes in Existing stores 9.0 5.9 3.2 4.4 4.8 6.1 6.6 4.2 September of the previous fiscal year that accompanied the consumption tax hike *2 In September, rebound from the impact of the rush in demand in September of the previous fiscal year that accompanied the consumption tax hike

Hotels (Occupancy rate) Hakone Area

（％） (%, compared with 2018) 100.0 40.0 Hakone ＨＲＴHRT*1※１箱根３ホテルHakone Three※２箱根ＦＰ※３１日きっぷone-day ※tickets*4４ Hotels*2 Freepasses*3 90.0 20.0

80.0 0.0 70.0

△ 20.0 60.0

50.0 △ 40.0

40.0 △ 60.0

30.0 △ 80.0 20.0

△ 100.0 10.0

0.0 △ 120.0 2月 3月 4月 5月 6月 7月 8月 9月 2月 3月 4月 5月 6月 7月 8月 9月 HRT*1 Hakone ＨＲＴ※１ 51.0 19.5 4.2 4.3 6.4 7.6 9.5 8.2 箱根ＦＰFreepasses※*3３ △ 51.8 △ 69.0 △ 91.5 △ 96.4 △ 93.8 △ 88.6 △ 73.2 △ 64.0 Hakone Three one-day 箱根３ホテルHotels*2 ※２ 54.4 50.2 13.9 0.0 39.2 40.1 75.1 66.2 １日きっぷtickets*4 ※４ 17.5 △ 100.0 △ 96.0 △ 100.0 △ 0.9 △ 69.1 △ 10.5 29.3 *３ Number of Hakone Freepasses sold *１ Hyatt Regency Tokyo *４ Number of pirate ship and ropeway one-day tickets sold (ropeway operations were suspended *２ Hotel de Yama・Hakone Highland Hotel・Hotel Hatsuhana in June 2018 for scheduled maintenance)

2020/4 2020/7 2020/10 2021/1 2021/4 2022/4～

Declaration Cycle of enforcing and easing regulations Gradual return to of state of Changing lifestyles due to the COVID-19 pandemic, normal emergency including social distancing

FY2020 FY2021 FY2022～

new infections new of Number

Resolution pandemic of =Widespread use use ofpreventative medicine, etc.

Level before the COVID-19 pandemic

company each of Income / Economy

Levels will not return to Gradual improvement before the COVID-19 alongside the reopening of pandemic, even after the economy the pandemic resolves

Shift of residential Teleworking becomes Change in tourism areas to suburban Change in office needs commonplace areas trends

Further expansion of Diversification of Digitalization of schools etc. e-commerce communication

Promptly and steadily restore sound Respond appropriately to business conditions the Post-COVID-19 environment

Reduce investments and promote Strengthen efforts based on cost structure reforms future fields

・Change business models to cater to new lifestyles Improve financial position and

restore profitability ・ Promote efforts to spur demand with an understanding of new lifestyles

Investments Costs (FY2020, compared with initial forecast)>

-¥35.8 -¥18.9 -¥42.1 billion billion billion Additional ¥2.5 billion reduction

Additional ¥6.3 ¥76.3 billion reduction ¥91.5 ¥78.8 billion billion billion ＊

2019FY2019年度 Full-年間予想year forecast Full-年間予想year forecast Full年間予想-year forecast April４～９月実績-September Full-年間予想year forecast (As of July 2020) results (As of October 2020) results実績 (As（７月時点） of July 2020) (As （of 10October月時点） 2020) （７月時点）（10月時点）

＊ ¥15.2billion reduction from FY2019 results * Excluding cost of sales in merchandising and real estate businesses and including ¥2.5 billion in fixed costs transferred ¥41.3billion reduction from initial plans to extraordinary loss following temporary closures future policy future policy

Continue to execute certain Promote dramatic reductions to Promote cost structure reforms based on the assumption investments that contribute to investments while still giving the that the profit scale will shrink going forward future growth utmost consideration to safety

Improve financial position Restore profitability

Efforts to Review unprofitable businesses Pursue initiatives improve Promote cost structure reforms in each that can generate EBITDA business, etc. Promote cost structure profit even under a Curtail investment reforms in each business Efforts to challenging business Liquify real estate and cross- reduce debt environment shareholdings, etc.

Improve interest-bearing debt/EBITDA ratio Improve ratio of operating income to revenue （％） (times) （％） 10.035.5 11.0 10.0 9.9 9.6 9.8 10.0 9.4 9.5 35.09.5 8.6 9.0 9.0 7.6 8.0 8.5 8.9 7.7 7.0 6.4 8.5 8.2 8.0 8.4 6.0 7.5 7.8 △ 6.05.0 7.6 7.4 7.0 7.3 4.0 7.2 △ 7.0 7.1 6.5 △ 8.03.0 10 11 12 13 14 15 16 17 18 19 20 （FY） 10 11 12 13 14 15 16 17 18 19 20 （FY）

Worldview of future fields = Post-COVID-19 Mobility × Security and Comfort Creating a new mobility life for communities

While making universal value in the form of security and comfort accumulated over 90 years an unshakable foundation, we will apply future technologies to Group ＜Future Fields＞ create a next-generation mobility life for communities that will enable people to Management get around and meet people they want to meet when they want to meet them. Principle “Four areas of value provision”

Mobility × Security and Comfort Community Development × Attachment Community Development × Attachment Creating a new narrative for communities

Living × Enjoyment We will create occupational, residential, commercial, academic, and recreational settings that take advantage of the individuality and characteristics of communities Tourism × Experiences and foster attachment to and pride in communities together with customers. Long-Term Vision Through resolution of issues facing customers and local communities, we will create 2020 and a new narrative for communities.

“The organization necessary to Living × Enjoyment achieve them” Producing emotionally moving moments in uneventful everyday life Excitement × Innovation We will produce emotionally moving moments that go beyond a sense of Medium-Term security by speedily identifying changing trends and diversifying customer Management Plan wants and by co-creating together with various partners times and spaces that bring color and charm to uneventful everyday life.

Excitement × Innovation Tourism × Experiences Providing excitement to customers at all times Providing special memories from experiences found nowhere else

Each employee will make excitement the source of ideas by unleashing We will contribute to the development of Japan, regions, and communities by discovering ways for people to spend time and enjoy themselves unique to their independence, creativity, and enthusiasm. To deliver new value to specific localities together with local residents and assisting in providing guests customers, we will at all times embrace change and continue to challenge from Japan and around the world with experiences that remain as special the unknown. memories.

Future Fields Achievement Status Key Initiatives

 Generate profit while considering safety amid a certain level of decline in the number of train passengers

 Revise timetables (scheduled for spring 2021) Make times for first trains later and times for last trains earlier 1. Continuance of a safe railway system → Ongoing improvement in railway maintenance structure and construction of mechanisms that Response to changing behavior, etc. contribute to long-term safe stable  Review plans for capital expenditures management → Review periods for renewing railcars and railway facilities, Mobility etc. × ■Initiatives to cultivate demand Security and →Increase railway use on a non-commuter basis by Comfort creating more opportunities for customers to travel

 Greater sophistication of secondary transportation services

2. Construction of a network that utilizes  Promote MaaS next-generation mobility →Enhance functions and content and work to expand them not only along the Odakyu line but also in other areas

Greater Sophistication of Secondary  Expand tickets and other features on MaaS app “EMot” Transportation Services / MaaS ・Expand ticket service area to include not only Hakone but also  Efforts toward on-demand transportation Enoshima, Tanzawa, and Mount Oyama areas  Planned implementation of verification test* in the areas surrounding ・Enhance various app features such as real-time provision of train Shin-Yurigaoka Station and the Yamasaki apartment complex in operation information, test transmissions of train congestion forecasts, Machida City and tour planning

* Utilizing Ministry of Land, Infrastructure, Transport

and Tourism; Ministry of Economy, Trade and

Industry; and Tokyo Metropolitan Government in

FY2020) Passenger A boards Passenger B disembarks

Passenger A and C disembarks Passenger B boards Passenger C boards

Provide MaaS-based value in the Post-COVID-19 era  Screen under development

Behavioral changes Decline in contact Avoidance of the 3 Cs Discovery of mobility value

Things made Transmission of information Combination of the aims of possible Cashless / Ticketless in real-time transportation methods by MaaS Aim to not only digitalize existing services but also provide new value through apps, etc.

Future Fields Achievement Status Key Initiatives

1. Realization of community  Customer attracting stations development along the Odakyu • Shinjuku Station West Exit area redevelopment Line that takes advantage of the • Shimo-Kitazawa district above-ground development individuality and characteristics of • Mukogaoka-Yuen Amusement Park site use communities • Development between stations in Ebina  Living base stations • New work style proposals • Suburban lifestyle proposals • Enhanced convenience from expansion and upgrading Community of station functions Development • Community remodeling that utilizes local assets × Attachment → Promote community development that understands changing lifestyles (trends in nature, the environment, health awareness, etc.) Start of construction of facility in Ebina based on the concept of “wellness” (slated to open in the first half of FY2022)

 Formulate growth strategies in real estate business 2. Quantitative expansion and ・Review plans, portfolio, and operational structure for capital enhancement of organizational expenditures capabilities in the Real Estate ・Formulate exit strategies business ・Establish profit targets

Shinjuku area

 Shinjuku West Gate Redevelopment ● The Company’s Maintenance Policy

(1) Implement fundamental maintenance to realize the Shinjuku Grand Terminal

(2) Introduce urban features that help enhance international competitiveness

(3) Strengthen disaster-prevention functions and reduce environmental burden ● Overview of Planned Building Operating body Odakyu Electric Railway Co., Ltd., Tokyo Metro Co., Ltd. Main use Commercial, business, and railway station facility

Number of stories 48 aboveground, 5 belowground

Maximum height Approx. 260 m Start of construction FY2022 (scheduled)

Completion of construction FY2029 (scheduled)

 Promote efforts to enhance the appeal of Shinjuku  Conclusion of business collaboration agreement related to new urban development in Shinjuku using advanced technologies (XR*) (Start of initiatives in November 2020)

Enhance appeal of and invigorate Create new lifestyles through XR the Shinjuku area Advance partner businesses *X Reality (or Cross Reality) is a term that comprehensively expresses virtual reality, augmented reality, and mixed reality technologies

Communities along Odakyu Line Shinjuku That Spans across Suburban Areas 新宿 Shimo-Kitazawa Hub of stations spread across suburbs Karakida Yoyogi-Uehara with over 100,000 average daily passengers Noborito 30 km from Between multiple Shinjuku Station train lines Daytime/nighttime Shin-Yurigaoka (FY2019/descending order/thousands) population ratio (Atsugi City) Machida Number of Number of Station Station 1 Shinjuku 516,876 7 Hon-Atsugi 151,791 40 km from Shinjuku Station Shin- 2 Machida 289,419 8 128,155 Yurigaoka Yamato Yoyogi- Sagami- Ebina 3 283,238 9 127,169 50 km from Uehara Ono Shinjuku Station 40 km from Shimo- 4 Noborito 167,685 10 121,739 Shinjuku Station Kitazawa Hon-Atsugi 5 Fujisawa 165,663 11 Yamato 118,918

6 Ebina 152,370 * Numbers in bold indicate stations that are over 30 km away from Shinjuku Station 50 km from Shinjuku Station Fujisawa Hakone-Yumoto Odawara 鎌倉Kamakura

government Kanagawa Agreement for collaboration related to the promotion of the Prefecture SDGs *2 City community development along the Odakyu Line 1,298 1,103 *1 According to Census in 2017 Agreement for collaboration related to information *2 According to Report on Machida City transmission 522 Internal Migration in Japan Agreement for collaboration related to the promotion of a 321 379 Zama City circular economy Derived from Basic Resident Agreement on Cooperation and Collaboration in Health Promotion Registration, Ministry of Internal Ebina City Businesses, etc. Affairs and Communications Agreement for collaboration related to the promotion of community (excludes foreign residents) Hadano City development along the Odakyu Odawara Line 2015 2016 2017 2018 2019

Future Fields Achievement Status Key Initiatives

 Review facility composition and provide services in accordance with the changes in customer behavior in each area 1. Transformation to the New services at commercial facilities commerce of the future Subscription services (at restaurants) Delivery services for purchased products (verification test currently underway), etc. Living × Using sports to help invigorate areas along the Odakyu Line Enjoyment  2. Creation of content that  Developing stations that can become important symbols for the local Community produces emotionally moving  Providing learning opportunities and fun for people living along the moments Odakyu Line → Create content in accordance with changes in customer behavior and value systems

1. Opening of hotels with  Temporarily curtail opening new locations and focus on characteristics that accentuate improving management at each hotel going forward local appeal Tourism × Experiences  Focus on incorporating domestic tourism demand 2. Development of a world-class  Examine the provision of new travel styles in tourism business model consideration of COVID-19

Status of Response in the Status of Hotel Openings Hotel Business

*Property holding status □: Lease Method ■: Direct Management Method  Business review No. of Name of Hotel Location Date of Opening * Guest Rooms ● Hotel Century Sagami-Ono

１ HOTEL LOCUS Miyakojima 100 rooms Jan. 2018 ■ Change hotel type from integrated city hotel to accommodation-

2 HAMACHO HOTEL Nihombashi 170 rooms Feb. 2019 □ only hotel (Scheduled for September 2021) 3 MUJI HOTEL GINZA Ginza 79 rooms Apr. 2019 □

4 the rescape Miyakojima 41 rooms May 2019 □ Hotel Century Sagami-Ono (Directly connected to ONSEN RYOKAN YUEN 5 Shinjuku 193 rooms May 2019 □ Sagami-Ono station) SHINJUKU

6 HAKONE YUTOWA Hakone 72 rooms Aug. 2019 ■

7 HOTEL CLAD Gotemba 182 rooms Dec. 2019 ■ 8 HOTEL ANTEROOM NAHA Naha 126 rooms Feb. 2020 □ ● Hyatt Regency Tokyo 9 HOTEL STRATA NAHA Naha 221 rooms Apr. 2020 □ Exit from the wedding business (September 2020) ONSEN RYOKAN YUEN 10 Sapporo 182 rooms July 2020 □ ● Hotel Century Shizuoka Sapporo PETIT SUITE SOGENJI Transfer of shares to external parties (March 31, 2020) 11 Naha 5 rooms September 2020 □ ISHIMON  Promote efforts to reduce costs ONSEN RYOKAN YUEN 12 Setagaya 35 rooms September 2020 ■ BETTEI DAITA Revise necessary personnel in terms of temporary layoffs and 13 SOKI ATAMI Atami 54 rooms November 2020 □ part-timers, transition from outsourcing work to performing in- house, promote multi-tasking, etc. ■ Promote efforts to spur domestic demand Enhance day-use plans Expand takeout menu, etc. 17PETIT SUITE SOGENJI ISHIMON ONSEN RYOKAN YUEN BETTEI DAITA SOKI ATAMI

Hakone area

＜Repair and reconstruction of Sonzan Station building＞ Began use of new station building on July 9, 2020 Resumption of service for the entire line for the first time in nine months on July 23, 2020

New tourist spot Directly after disaster Day of resuming service “cu–mo Hakone” After restoration

Hakone Ropeway

△42.8 ％ -25.7％ -41.8％ Hakone Tozan cable car Hakone ¥21.7 ¥17.7 ¥12.4 -78.8％ Tozan Railway billion billion billion ４～６月April– ７～９月July– 10October～３月– June September March FY2018 FY2019 FY2020 results実績 results実績 forecasts予想 2018results実績 2019results*実績※ 2020forecast予想 Hakone * Impacted by the raising of volcanic alert in Owakudani Valley Area and sightseeing Cruise Typhoon No. 19 (Hagibis)

Future Fields Achievement Status Key Initiatives

1. Fostering of human resources and  Business idea solicitation system ideas that will generate new value  Project talent recruitment system and opportunity creation

Excitement  Promotion of diversity and inclusion ×  Promote efforts to enhance productivity (on-site divisions and head Innovation 2. Creation of an environment that office division) maximizes the power of  Establish environments that can respond to new work styles, such as employees working from home  Deploy the necessary personnel to expand new sources for profit both qualitatively and quantitatively

 Overseas business: Continue examinations while narrowing down area and type of business  M&A: Continue to examine new projects while focusing on rebuilding strategies and improving management of companies already acquired  Initiatives for new value provision  Establish ICT platform along the Odakyu Line  Establish promotion structure for Companywide digital transformation  Continue investment in certain growth fields and proceed with examinations of new businesses under the Post-COVID-19 business environment

Develop a community-based service platform

Conventional private railway distribution model A new platform-type business model

Mobility Living Real estate Leisure Merchandising Sales Tourism Living Retail MaaS Development Restaurants Five million service Community residents Tourism development Data Railway ICT platform along the Odakyu Line

Community-based service platform that allows easy access to useful lifestyle services using one ID (from December 2019)

Mobility Sports Collaborating Share ID partners Living ・Collaborating ID services eco (allowance of Odakyu Points) Local ・Realize mutual customer referral ・Members-only coupons Merchan- ・Expand number of users ・Odakyu Energy and Gas governments ・Confirmation of user dising history Real Coupon ・Other perks Odakyu Points estate partners Offering convenience and value by Group enabling access to various ONE- related services using one ID Expand all 56 services of 58 companies As of November 4, 2020

Offer a platform-type service that link various services from within and beyond the Group with the aim of creating Japan’s most livable areas along a railway, neighborhoods that will be secure, convenient, and comfortable.

Revision to Forecast at Jul. 2020 Forecast at Oct. 2020 revenue from operations

 Results of Railway Business of Odakyu Electric Railway ■ Results of Railway Business of Odakyu Electric Railway Revenue from operations to recover to about 85% of

Transportation Revenue from operations to remain at the June level until September, the initial assumption as of March 2021 subsequently follow a recovery trend, and recover to about 90% of the initial Busses assumption as of March 2021  Revenue from operations in second half to remain at ■ Busses about 80% of the initial assumption Recovery to about 90% of the initial assumption as of March 2021  Hakone (Transportation Companies)  Hakone (Transportation Companies) Recovery to about 70% of the initial assumption as of March 2021 Revenue from operations in second half to remain at about 60%–70% of the initial assumption

Merchandising  Department Stores  Department Stores Revenue from operations in second half to remain at Revenue from operations to remain at about 80% of the initial assumption about 70%–80% of the initial assumption  Stores and Retail Recovery to the initial assumption as of February 2021  Stores and Retail Revenue from operations in second half to remain at

Real Real Estate about 90% of the initial assumption

■ Leasing ■ Leasing Revenue from operations to remain at about 80% of the initial assumption Revenue from operations in second half to remain at about 90% of the initial assumption

Other Other Businesses ■ Hotels Revenue from operations in second half to remain at ■ Hotels about 40% of the initial assumption Recovery to about 60% of the initial assumption as of March 2021 ■ Restaurants ■ Restaurants Recovery to about 80% of the initial assumption as of March 2021 Revenue from operations in second half to remain at about 70%–80% of the initial assumption

FY2019 FY2020 Forecast at Millions of yen (actual) (forecast) Jul. 2019 Change Change

Revenue from 534,132 390,600 △ 143,532 △ 26.9％ 400,600 △ 10,000 △ 2.5％ operations

Operating income 41,103 △ 28,400 △ 69,503 ー △ 28,400 ーー

Ordinary income 38,299 △ 33,100 △ 71,399 ー △ 33,100 ーー

Net income attributable 19,923 △ 32,100 △ 52,023 ー △ 32,100 ーー to owners of parent

Capital investments 91,599 76,300 △ 15,299 78,800 △ 2,500

Depreciation 49,628 51,800 ＋ 2,171 51,900 △ 100

Interest-bearing debt 741,027 798,200 ＋ 57,172 814,600 △ 16,400

Revenue from （Unit：Millions of yen） operations

△ 3,100 （△）Work commuters （＋）Hakone Area △ 5,000 ＋ 300 （△）Department （＋）Commercial △ 2,300 ＋ 100 Store facilities in （△）City hotels suburban areas 400,600 390,600

Forecast Forecast Transportation Merchandising △Real10,000 Estate Other Businesses Adjustments ７月時点予想at Jul. 2020 運輸流通不動産その他調整額 10at 月時点予想Oct. 2020

Operating income （Unit：Millions of yen）

± 0 △ 28,400 △ 28,400

（△）Decline in （△）Decline in revenue revenue （△）Decline in （＋）Decrease in （＋） Decrease （＋） Decrease in costs revenue in costs costs （＋）Decrease in ± 0 ± 0 △ 900 costs ＋ 300 ＋ 600

Forecast Forecast Transportation Merchandising Real Estate Other Businesses Adjustments ７月時点予想at Jul. 2020 運輸流通不動産その他調整額 at10 Oct.月時点予想 2020

Work School Non-commuters 通勤定期commuters 通学定期commuters 定期外

765,327,000 passengers

Results2019年度 for 128,377,000 FY2019 349,361,000 passengers 287,589,000 passengers 実績 passengers

-18.2％ -56.8％ -26.3％（First half: -20.5％）（First half: -65.1％）（First half: -44.4％）（second-half: -15.7％）（second-half: -45.5％）（second-half: -6.3％）

2020年度 Forecasts for 55,463,000 285,878,000 passengers 211,980,000 FY2020予想 passengers passengers

553,321,000 passengers

-27.7% (First half: -37.6%; second-half: -16.6%)

The Company’s basic policy for returning profits to shareholders is to maintain stable Basic policy dividend payment as a result of improved performance with a dividend payout ratio of approx.30%.

Interim dividend: Forego the payment of interim dividend from the perspective of financial results forecasts and financial stability (¥11 in previous fiscal year) FY2020 Dividend Year-end dividend : Year-end dividend payment of ¥10.0 per share, the same amount as in the previous fiscal year, from the perspective of providing stable dividends

＜Dividend per share＞

Dividend per share figures for FY2016 and prior years reflect the impact of a reverse stock split. （Unit: yen）

10.0 12.0 12.0 13.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 21.0 10.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)

Initiatives to create a recycling-based society

Hoshinotani Apartment Complex Verification test for the smart recycling of resources (Transformation of company in Zama City (Utilization of technologies of U.S.-based housing into rental properties in FY2015) Rubicon Technologies, LLC) Influx of younger people through community creation, etc. Aiming to realize a sustainable society by resolving the

Contribution to regional revitalization issues facing waste disposal and other operators

* A public innovation Selected as “Circular Economy Solutions That Change the World” by Sitra,* marking the first time a Japanese company was selected fund in Finland

Cross-shareholdings  Verify the aim and rationality of cross-shareholdings from qualitative and quantitative perspectives and

work to reduce these shares in such ways as selling off shares for which the significance of holding is low

Sale of two stocks in listed companies and two stocks in non-listed companies (one FY2019 of which was a partial sale of shares) First half of Sale of one stock in a non-listed company (partial sale of shares) FY2020

Remarks Figures concerning the company’s business plans, future forecasts and strategies other than historical facts are forward-looking statements reflecting management’s view. Please note that, since the forward-looking statements are based on information currently available, the actual results may differ from these forecasts.