Tokyu Fudosan : 2023 Integrated Report

Group Overview
Our Ideal Vision
Medium- to Long-term Growth Strategy
Strategy by Business Segment
Value Creation Foundation Data

02 Our Ideal Vision

03 Medium- to Long-term Growth Strategy

04 Strategy by Business Segment

05 Value Creation Foundation

Data

Editorial Policy

The Group aims to realize a future where everyone can be themselves and shine vigorously under "WE ARE GREEN," the slogan for achieving our long-term vision. Therefore, since last year, we have released

the "WE ARE GREEN" report with the aim of providing all of our stakeholders, including shareholders and investors, with easy-to- understand information about how the Group addresses social issues through its businesses to achieve sustainable growth and improve its corporate value. The report covers our value creation story, long-term management policy, and medium-term management plan. It also explains both our financial and non-financial initiatives in areas such as human capital strategy and corporate governance, interspersed with case studies and messages from our employees. The International Integrated Reporting Framework advocated by the IFRS Foundation (formerly the Value Reporting Foundation), and the Guidance for Integrated

Information disclosure framework

Non-financial

Environmental

DX Report

Management

Report

Company overview

To be issued in

To be

issued in

Sustainability website

(website)

November 2023

November

2023

Group Overview
Our Ideal Vision
Medium- to Long-term Growth Strategy
Strategy by Business Segment
Value Creation Foundation Data

Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation published by Japan's Ministry of Economy, Trade and Industry, and other resources were consulted in the creation of this report.

Reporting target

Covered in this report

Tokyu Fudosan Holdings Corporation and Group companies

Dates covered

April 1, 2022 to March 31, 2023 (including some information from April 2023 and later)

Released

August 2023

Administrative office and cooperative departments

Group Sustainability Promotion Department / Group Corporate Planning Department / Corporate Communication Department / Group General Administration Department / Group Human Resources Department / Group Digital Transformation Promotion Department / other departments at each Group company

Note on forward-looking statements

The forecasts and other forward-looking statements in this report are based on currently available information and certain assumptions determined as rational. Consequently, the statements herein do not constitute assurance regarding actual results by the Company. Actual performance may significantly differ from

Selective type

Integrated

Report

Financial Highlights

Presentation Materials

Tokyu Fudosan Holdings Corporation company website

Corporate Governance Report

Annual Report

Financial

Summary

Exhaustive type

these forecasts due to various factors in the future.

Financial

The Group Philosophy

We aspire to create value for the future to realize a sustainable society and growth, based on a Group Philosophy comprising our ideal vision, our pledge to society, and our founding spirit.

Our ideal vision	Create value for the future

	We resolve social issues through our business activities and aim for sustainable society and growth together with our stakeholders.
	We realize a future where everyone can be themselves and shine vigorously through the creation of a variety of appealing lifestyles.

Our pledge to society We believe that corporate value is the sum total of the levels
	of satisfaction of all of our stakeholders.

Editorial Policy

Group Overview
Our Ideal Vision
Medium- to Long-term Growth Strategy
Strategy by Business Segment
Value Creation Foundation Data

Customers

Always coming face-to-face with customers, we will provide value that will ensure that we continue to be chosen by them.

Group employees

We develop human capital who can tackle challenges and create workstyle environments where Group employees can work actively.

Business partners

We will create value in partnerships and aim to achieve growth together with our partners.

Local communities

We will contribute to a sustainable society by initiatives to coexist with communities and revitalize them.

Shareholders and investors

We will maximize shareholder value through sustainable growth.

Future society

We aspire to pass on to future generations a world full of hope with a rich environment.

Our founding spirit	"Challenge-oriented DNA"

	A progressive spirit inherited since the development of Den-en Chofu, a pioneering effort to create the ideal town

Eiichi Shibusawa

1840-1931

Established the Den-en Toshi Company, the origin of the Group

Eiichi Shibusawa is often referred to as the father of Japanese capitalism for his role in building the foundation for the Japanese economy. He was active from the Meiji era (1868-1912) into the early Showa period (1926-1989). He was involved in the establishment and development of around 500 companies and around 600 public works projects, and made great efforts in support of philanthropic activities.

Noboru Goto

1916-1989

First president of Tokyu Land Corporation

Noboru Goto led the Tokyu Group as the first president of Tokyu Land Corporation. He engaged in large-scale urban development and resort development projects, as well as serving as chairman of the Japan Chamber of Commerce and Industry (JCCI).

Provided by: Tokyu Corporation

Contents

Editorial Policy

Group Overview	6
A History of Value Creation	7
Business Overview	8
The Group's Strengths in Numbers	9
Value to Be Created-Lifestyle Creation 3.0	10
Special Feature:	11
Community Development in
the Greater Shibuya Area

Our Ideal Vision	14
Process for Value Creation	15
•Create Value for the Future	15
•Value Provided to Stakeholders	16
Letter to Our Stakeholders	17
(Message from the President)

Medium- to Long-term	24
Growth Strategy
Long-term Management Policy	25
Medium-term Management Plan 2025	26
Financial Capital Strategy	27
(Message from the Officer in Charge)
Management Strategy Promotion	31
and Progress
(Message from the Officer in Charge)

Group Policy-Environmental Management	33
•Policy Summary	33
•Earnings Growth Drivers	34
•Accelerating Renewable Energy	35
Business Expansion
•Special Feature:	36
The Future of the Renewable
Energy Business
Group Policy-DX	37
•Policy Summary	37
•DX Initiatives	38
•Special Feature:	39
Creating "Bridge Persons" to Drive DX
Business Policy	40
•Policy Summary	40
•Case Study:	41
Realizing Smart Cities	41
Advancing Building Preservation and	43
Regenerative Architecture
Human Capital and Organizational Climate	45
•Human Capital Management	45
(Message from the Officer in Charge)
Outside Director Discussion	47

A History of Value Creation Business Overview

Group Overview
Our Ideal Vision
Medium- to Long-term Growth Strategy
Strategy by Business Segment
Value Creation Foundation Data

Strategy by Business Segment

	Urban Development	52

	Strategic Investment	54

	Property Management & Operation	56

	Real Estate Agents	58

Value Creation

Foundation

Themes of Our Efforts to Create Value (Materialities)

Overview of Sustainable Management

Financial and Non-Financial KPI Targets and Results


			64
	Communication With Stakeholders
	Environment	65
		•Promoting Environmental Management	65
		•Addressing Climate Change	67
	Society	70
		•Contributing to Local Communities	70
		•Human Capital and Organizational Climate	72
		•Respect for Human Rights	76
	Governance	78
		•Corporate Governance	78
60		•Risk Management	85
	•Officers	87

Data

Financial and Non-Financial Highlights	92
Financial and Non-Financial Data	94
Business Areas	96
Socially and Environmentally	98
Friendly Assets
Support for International Initiatives /	100
External Evaluations
Holdings Structure	101
Corporate Overview / Stock Information	102

Group Overview

A history of growth and taking on challenges

Four factors for our next-generation community development

History

Accomplishments

Strengths

Vision

Special Feature

Community Development in the Greater Shibuya Area

See p. 11

A History of Value CreationBusiness Overview

Special Feature: Community Development in the Greater Shibuya Area

02 Our Ideal Vision

Medium- to Long-term Growth Strategy
Strategy by Business Segment
Value Creation Foundation Data

Group Overview A History of Value Creation

A Group with History of new value through our real estate business.
	We have a history of addressing social issues and needs as they
	change with the times by advancing Group co-creation in pursuit
Major theme from 1953 to the 1960s	Major theme up to the 1980s	Major theme up to the 2000s
Eliminating housing shortages	Improving quality of life	Diversifying lifestyles

FY2022 operating revenue

¥1,005.8 billion

Major theme up to the present

Creating a sustainable society

A History of Value Creation

Special Feature: Community Development in the Greater Shibuya Area

02 Our Ideal Vision

Tokyu Skyline (condominiums)	Asumigaoka New Town (housing estate)	Setagaya Business Square (office building)	Shibuya Fukuras (office and commercial complex)
During the period of rapid economic growth that followed Japan's	As living standards continued to rise, people's values also began to	After the collapse of Japan's economic bubble, the Group shifted its	In order to respond to global climate change and the
post-war recovery, the problem of housing shortages in urban	diversify. The Group started working to diversify its operations-ex-	focus from the long-term development of suburban housing to the	digitalization of society, we are pursuing even greater value
areas became apparent. The Group supplied residential properties	panding into property management and real estate agency	leasing of offices, commercial facilities and other properties. We also	creation through urban development that is both
and commercial facilities, primarily in its base area of Shibuya, and	operations, retail and resort development-and grew into a	improved our finances and strengthened our revenue base.	economically and environmentally sustainable.
pursued the creation of value through real estate business.	corporate group providing total lifestyle services.

Medium- to Long-term Growth Strategy
Strategy by Business Segment
Value Creation Foundation Data

Our Origin: Den-en Chofu Urban Development

Den-en Toshi Company was established in 1918 by Eiichi Shibusawa and others. The company developed the Den-en Chofu district as a residential area in Tamagawadai, incorporating the British-originated garden city concept to offer the advantages of both natural and urban environments.

Business development that addresses social issues

Realizing Lifestyle Creation 3.0

From buildings to solutions, and combination of lifestyle scenes. We are evolving our efforts to create value in a way that is conscious of social issues to realize Lifestyle Creation 3.0, which brings together the three areas of living, work, and play. We combine environmental management and digital transformation (DX) to propose new value that is more unique than ever before.

	Lifestyle Creation 1.0	Lifestyle Creation 2.0
Developing businesses	Proposing solutions
	from buildings	using buildings

	Commercial facilities
	Hotels		Proposals for
	Golf courses		play styles
	Ski resorts

Condominiums		Proposals	Proposals
Ofﬁce buildings	for	for
Detached houses		home styles	work styles

Lifestyle Creation 3.0

Combining every

aspect of life

Proposals fo play styles

Proposals Proposals

for	for
home styles	work styles

Lifestyle creation

Changes in operating revenue* and establishment of major companies

	1970 Establishment of Tokyu Community Corp.

1953 Establishment of Tokyu Land Corporation		1972 Establishment of Area Service Co., Ltd. (now Tokyu Livable, Inc.)
		1976 Establishment of Tokyu Hands Inc.

2013 Establishment of Tokyu Fudosan Holdings Corporation

2014 Establishment of Tokyu Housing Lease Corporation

2016 National Students Information Center Co., Ltd. made into a consolidated subsidiary

2022 Divestment of Tokyu Hands Inc.

1953

1960

1970

1980

1990

2000

2010

2020

Fiscal 1953 to fiscal 1992: non-consolidated operating revenue from Tokyu Land Corporation. Fiscal 1993 to fiscal 2012: consolidated operating revenue from Tokyu Land Corporation. From fiscal 2013 onward: consolidated operating revenue from Tokyu Fudosan Holdings Corporation. Fiscal 1989 was only a 6-month fiscal term, as the fiscal term was changed from September to March that year.

Group Overview Business Overview

A Group with	Accomplishments operation, real estate agent operations, infrastructure building, and real estate investment.
	We possess the expertise and resources required for future-oriented urban development across
	a wide variety of businesses, from real estate development to building management and

Urban Development		See p. 52

In the Urban Development segment, we develop and operate office buildings, commercial facilities, and other facilities, while also developing condominiums and rental housing (rental condominiums and student residences). Our focus is on

redevelopment projects and developing complexes, taking advantage of our extensive

Property Management		See p. 56
& Operation

In the Property Management & Operation segment, we operate a wide range of customer-oriented businesses, including a property management business that helps maintain and improve asset values, and a wellness business that helps promote good health and create enriched lifestyles. We provide value in terms of a comfortable urban life, safe and secure housing, mental and physical health, and

Eliminations

-¥19.1 billion

Real Estate Agents

¥263.0 billion

Property Management & Operation

¥337.1 billion

FY2022

Operating revenue

¥1,005.8 billion

Urban Development

¥346.1 billion

Strategic

Investment

¥78.8 billion

Business Overview

A History of Value Creation

Special Feature: Community Development

in the Greater Shibuya Area

02 Our Ideal Vision

03 Medium- to Long-term Growth Strategy

experience as a comprehensive developer. We provide value in terms of a comfortable urban life and safe and secure housing through our business with the aim of creating attractive communities and lifestyles.

Shibuya Solasta

Strategic Investment		See p. 54

fulfilling leisure time through our business while working to maximize the value of customers' assets and facilities.

Niseko Tokyu Grand HIRAFU

Real Estate Agents		See p. 58

Eliminations

-¥9.4 billion

Real Estate Agents

¥33.7 billion

Property Management & Operation

¥12.3 billion

Strategic Investment

¥15.2 billion

FY2022

Operating profit

¥110.4 billion

Urban Development

¥58.6 billion

04	Strategy by Business Segment

05	Value Creation Foundation

Data

In the Strategic Investment segment, we develop and improve infrastructures supporting lifestyles, such as renewable energy power generation facilities and logistics facilities. We also create diverse investment opportunities by applying our real estate investment management know-how in Japan and overseas. In our overseas operations, centered around the United States and Indonesia, we are demonstrating our presence as

a comprehensive developer. We provide value in terms of a comfortable urban life and the supply of clean energy through our business with the aim of building next-generation social infrastructure.

ReENE Matsumae Wind Power Plant

In the Real Estate Agents segment, we provide solutions related to the use of real estate stock, such as real-estate sales agent services and consignment sales, and engage in operations related to rental housing management. We provide value in terms of a comfortable urban life and safe and secure housing through our business in order to contribute to the development of a

healthy society that uses building stock effectively.

Real estate agent business

Human capital-utilizing			Asset-utilizing business

business		¥2,181.1 billion
¥630.6 billion	(77.6%)
(22.4%)

Real Estate Agents
¥223.0 billion
(7.9%)
Property Management	FY2022
Total assets
& Operation	Urban
¥407.6 billion	(excluding eliminations)	Development
(14.5%)	¥2,811.7 billion	¥1,644.1 billion
Strategic Investment	(58.5%)

¥537.0 billion
(19.1%)

Total participants

14,728

No.1 in Japan

Group Overview The Group's Strengths in Numbers
A Group with Strengths	are driving us toward sustainable growth.
	The Group's unique strengths are the source of our competitiveness and

Diverse assets and customers

A culture that produces unique businesses

Highly specialized personnel and knowhow

Business Overview

Group facilities under operation

Renewable energy business

Group employees (including temporary employees)

A History of Value Creation Business Overview

205

Customers served

Approx.18.2 million *1

ReENE

See p. 99

As of June 2023 Rated Capacity

1,612MW

Total number of businesses

Approx. 30,000

Employees with certifications

Approx. 12,200

Special Feature: Community Development

in the Greater Shibuya Area

02 Our Ideal Vision

03	Medium- to Long-term Growth Strategy

04	Strategy by Business Segment

Tenant companies (office)	Tenant companies (commercial)
508	1,387

Reduction in CO2 emissions

Approx. 1,526,000 t-CO2/year

Licensed architects	Real estate notaries
(first and second class)
5,648
716
Licensed condominium	Licensed strata management

05 Value Creation Foundation

Data

Condominium units under comprehensive management

Approx. 525,000

Condominium management company (non-consolidated) Condominium units under comprehensive management (approx. 502,000)

(Source: Mansion Kanri Shimbun, May 25, 2023 issue)

STEP

the Group's co-creation-based internal venture scheme

Launched in FY2019 Cumulative proposals received

253

Commercialized proposals

managers	consultants
2,375	1,943
Licensed care workers	IT Passport holders
561	937

Acquiring external knowledge and sharing expertise within the Group

Real estate transactions through agents

Approx. 30,000

FY2022 Ranking for real estate transactions through agents

No.3 in Japan

(Source: Shukan Jutaku, May 29, 2023 issue)

etc.

Corporate Venture Capital

Launched in FY2017

Cumulative investments

We invite external experts to give self-development seminars. We also hold seminars led by internal instructors with the aim of encouraging mutual understanding between businesses and strengthening collaboration within the Group alongside other events.

Cumulative 111events held

Becoming an environmentally advanced company

CDP Climate Change A List Selected in 2022

Selected for 2 consecutive years

	DX promotion initiatives
First Japanese company*2 to completely switch	Selected as a Digital Transformation Stock
to renewable energy in 2022 (Tokyu Land Corporation)	(DX stock) 2023

*1. Includes outsourced employee welfare services members, commercial facility cardholders and app members, fitness club members, BRANZ CLUB members, Tokyu Cosmos Members Club members, and Tokyu Harvest Club members

*2. According to the list at the end of the RE100 2021 Annual Disclosure Report. Excludes financial institutions

Group Overview Value to Be Created-Lifestyle Creation 3.0

We are fulfilling customers' needs through unique proposals that combine home styles,

A Group with Vision work styles, and play styles. We aim to realize Lifestyle Creation 3.0 *1 by creating value on both time and spatial axes.

Lifestyle creation (value creation on a time axis)		Wide range of business fields (value creation on a spatial axis)
	Creating value in all manner of urban settings on a spatial axis that utilizes
Providing diverse services for each life stage of our customers and creating new lifestyles
	the Group's value chains

Life stage

Schooling

Career

Post-retirement