To Our Shareholders and Investors
My name is Hirofumi Nomoto and I am the president and representative director of Tokyu Corporation. I would like to take this opportunity to express my sincere gratitude for the understanding and support you have shown Tokyu Corporation and the Tokyu Group.
With regard to the economy, while the corporate sector’s performance is said to be rallying moderately, the situation is unpredictable owning to the sluggish growth of domestic consumption and the uncertain outlook of international politics and external demand. Meanwhile, when we look at areas such as demographics, consumer behavior, points of contact with customers, business opportunities for the next generation, and the global market, we see that the business environment surrounding the Company is changing by the minute.
In the midst of this ever-changing environment, we have entered fiscal 2017 as the final fiscal year of the three-year medium-term management plan, STEPS TO THE NEXT STAGE, which we commenced in April 2015. The plan follows the medium- and long-term vision established in fiscal 2012, and presents the ideal form of the corporation we seek to become by 2022, the year in which we will celebrate the centenary of our founding. First, we intend to keep the TOKYU area as the main focus. To this end, we will work to promote the TOKYU railway area as the best place to live, Shibuya as the best place to visit, and Futako-Tamagawa as the best place to work. Second, the Tokyu Group aims to become a strong business group as “one TOKYU.” Under this plan, we are working on business strategies and measures for our growth from a long-term perspective.
In fiscal 2016, we were able to achieve our numerical targets thanks to the support of our customers. We launched the power retail business in April, and we have received more than 100,000 applications, mainly from areas served by Tokyu’s railway lines. In July, we began operating Sendai Airport in Japan’s first consignment of the operation of a government-managed airport to the private sector, which has resulted in increases in the number of flight services and passengers. We began to implement these and other initiatives in new business domains. In the Railway Business, the overall number of passengers carried increased 1.3%, partly reflecting the effect of Futako-Tamagawa Rise, which opened fully in fiscal 2015, and the impact of railway networks brought about by a mutual direct train service operation. In addition, we implemented further safety measures, including the installation of platform doors at nine stations and security cameras in 10 trains. Overseas, our urban development projects have been making steady progress. For example, we began constructing single-family homes in our Urban Development Business in Binh Duong Province in Vietnam. We are also proactive in promoting work style innovations, both internally and externally. For instance, in May we launched a shared satellite office business in the first project under the in-house entrepreneur training system and recommend that our employees work in the shared satellite office as part of employees’ work style reform.
In fiscal 2017, the final year of the plan, SHIBUYA CAST opened in April in a location forming the hub linking Shibuya with Harajuku and Aoyama, in one of the first projects for the large-scale redevelopment of the area around Shibuya Station. In May, we began working on the new commercial facility on the site of Grandberry Mall and the station renovation in Minami-Machida. In July, THE ROYAL EXPRESS, a train for tourists to Izu, will begin operation. While we continue to take on these and other challenges towards the new stage, we will also be proactive in taking measures for easing congestion, such as lengthening the express services on the Oimachi Line from six to seven cars.
Tokyu Corporation and the Tokyu Group operate three core business segments of transportation, real estate, and life services, as well as a broad array of other businesses closely linked with the everyday lives of our customers, including the hotel and resort business. We regard safety as the foundation for all our businesses, and will continue to fulfill our corporate social responsibility in our ongoing drive to transform Tokyu into a brand cherished and trusted by all stakeholders. As we pursue these initiatives, I would like to ask for your continued support for the business activities of Tokyu Corporation and the Tokyu Group.
President & Representative Director