Medium-term Management Plan

Tokyu Corporation (hereinafter "the Company") has recently prepared a three-year medium-term management plan (for fiscal 2012 to fiscal 2014) beginning in fiscal 2012.

The Company and its consolidated subsidiaries have been working to make qualitative changes to their business structure and develop the infrastructure needed for future growth by executing the current two-year medium-term management plan that began in April 2010 and focusing on the profitability and efficiency of the Group’s businesses. In the fiscal year ending March 31, 2012, the final year of the two-year medium-term management plan, we expect the management targets set out in the plan to be largely achieved.

Under these operating conditions, we need to pursue sustainable growth by appropriately responding to changes in the business environment surrounding the Company, such as changes in consumer behavior caused by the aging population and the falling working-age population in areas served by Tokyu's railway lines, as well as economic growth in emerging countries in Asia.

Given these developments, we have adopted a basic message for the new management plan: "Creation, Communication and Challenge." The basic strategy is "business development that keeps creating life value in the areas we serve" with the aim of maximizing consolidated revenue by enhancing cooperation among the operations of the Group from the customer's perspective. We plan to achieve this by strengthening our business infrastructure for future growth and through maximum use of the comprehensive capabilities of the Group, while carefully maintaining our financial soundness.

The overview of the three-year medium-term management plan of Tokyu Corporation is as described in the appendix.

Overview of the Three-Year Medium-Term Management Plan of Tokyu Corporation

1. 1. Period

   Three years starting from fiscal 2012 (fiscal 2012 to fiscal 2014)

2. 2. Basic strategy

   "Business development that keeps creating life value in the areas we serve"
   To realize our two medium- and long-term visions of keeping areas served by Tokyu's railway lines being the main focus and becoming a strong profit organization as "one Tokyu," we will provide products and services that will increase the appeal of the areas we serve with the aim of achieving "three No. 1's in Japan"* while creating new business opportunities through means such as participating in urban development projects in rapidly emerging countries in Asia.
   
   　*"Three No. 1's in Japan"
     - The most popular rail service areas in Japan for living: areas served by Tokyu's railway lines
     - The most popular town in Japan for visiting: Shibuya
     - The most popular town in Japan for working: Futako-Tamagawa

3. 3. Focused initiatives

   (1) Development of railway networks and continuation of safety measures

     We will steadily advance the direct train link between the Toyoko Line and Tokyo Metro Fukutoshin Line and the development of a through track between the Sotetsu' railway lines and Tokyu's railway lines, further improving customer convenience, enticing customers from outside the areas served by Tokyu's railway lines, and meeting social needs for security.

   (2) Continued development of areas served by Tokyu's railway lines, such as Shibuya and Futako-Tamagawa

     We will continue to solidify the infrastructure for the real estate business by proceeding with large-scale development projects in key centers of Tokyu's service areas. We will increase the value of these areas by developing an appeal that will keep areas served by Tokyu's railway lines being the main focus.

   (3) Strengthening the life service business and increased cooperation in areas served by Tokyu's railway lines

     We will improve the life value of people living in Tokyu's service areas by providing products and enhancing services that will offer added security, convenience, and comfort and that will fulfill the role of keeping areas served by Tokyu's railway lines being the main focus by stepping up cooperation among Group companies, with the aim of becoming "one Tokyu."

   (4) Pursuit of urban development projects overseas by leveraging our expertise in the development of rail service areas

     We will undertake urban development projects in Vietnam and Western Australia using the expertise we have cultivated, such as in the Tama Den-en toshi area.



4. Targets for Fiscal 2014 (Consolidated)

	FY2011 (Forecast)	FY2014 Targets
Tokyu EBITDA*1	143.9 billion yen	154.7 billion yen
Operating profit	53.8 billion yen	70.0 billion yen
D/E ratio (times)*2	2.5	2.2

*1 Operating profit + Depreciation + Amortization of goodwill + Disposal cost of fixed assets
*2 Balance of interest-bearing debt at the term end / Shareholders' equity at the term end

Related Materials

• Presentation Handout of Three-Year Medium-Term Management Plan(1,935K)
• Notice Regarding a Three-Year Medium-Term Management Plan(57K)