Medium-term Management Plan
Tokyu Corporation (hereinafter "the Company") has recently prepared a three-year medium-term management plan (for fiscal 2015 to fiscal 2017; hereinafter "the plan") beginning in fiscal 2015. The Company and its consolidated subsidiaries launched its current three-year medium-term management plan in April 2012 and is working diligently on focused initiatives, such as developing railway networks including the mutual direct train link between the Toyoko Line and the Tokyo Metro Fukutoshin Line, and developing areas served by Tokyu's railway lines such as Shibuya and Futako-Tamagawa. In the fiscal year ending March 31, 2015, the final year of the current plan, we expect the management targets set out in the plan to be largely achieved.
In the meantime, the business environment has changed considerably. Developments such as the selection of Tokyo as host for the Olympics and Paralympics have led to the emergence of new business opportunities for the Tokyu Group, and our management plans to date have opened up prospects of financial soundness. We have, therefore, made preparations for new growth, looking ahead to 2022 when we will celebrate the 100th anniversary of our founding.
The period covered by this plan is positioned as a step to completion of large projects such as the Shibuya redevelopment, and we will implement business strategies and growth initiatives from a long-term perspective. We, therefore, decided to name the plan "STEPS TO THE NEXT STAGE."
Under this plan, we will aim to strengthen both profitability and efficiency, strengthening existing businesses and projects, actively advancing into new areas where we can use our strengths, and prioritizing investment in growth areas, while at the same time ensuring sound financial health, in readiness for the big leap forward in the future.
The overview of the three-year medium-term management plan of Tokyu Corporation is as described described as follows.
Overview of the Three-Year Medium-Term Management Plan of Tokyu Corporation
- 1. Period
- Three years starting from fiscal 2015 (fiscal 2015 to fiscal 2017)
- 2. Basic Policies
- "We plan to cultivate prospects in the TOKYU area and undertake new challenges for growth to take a step toward our next phase of expansion."
- 3. Key Initiatives
 Offer greater security and enriched satisfaction
We will strive for railways that are even safer and more secure by enhancing facilities that increase safety, including platforms and crossings, and strengthening our response to accidents or emergencies. We will also integrate transportation, retail, and services that support daily life, promote movement over a wide area, and energize towns and communities.
 Development of the TOKYU area and further promotion of the real estate business
We will continue to promote the redevelopment of Shibuya as well as comprehensive development in areas surrounding the station. We will also strengthen consulting business using assets along Tokyu lines and further expand the real estate leasing business based on an investment-cycle type business model.
 Promote lifestyle and work style innovations
(i) Lifestyle innovation Embark on new challenges by leveraging group management resources
We will increase the convenience of the various home services offered by the Tokyu Group, including the newly launched power retail business, and bundle them into good deals. We will also introduce new services to Tokyu points, such as the transportation points collected on trains and buses, to deliver new lifestyle value to customers.
(ii) Work style innovation
We will develop creative and social facilities for customers and provide support for various styles of working. At the same time, we will promote initiatives such as diversity management within the Group and internal entrepreneur development programs and create an environment in which individuals can be active and shine.
(i) Strengthen structure for promoting retail business
We will establish a retail business division to unify our consolidated retail businesses. By developing powerful headquarter functions we can develop a system that leverages the comprehensive capabilities of the overall group.
(ii) Tapping into inbound demand
We will develop an environment for attracting inbound tourists to Shibuya, Tokyu area and Group facilities in Japan, including improvement of access to Haneda airport, enhancement of the sightseeing and charter bus network, duty-free and multi-lingual initiatives, and strengthening of the tour coordination function.
(iii) Hotel business
We will redefine the hotel brand from a customer perspective and will also promote hotel openings in major cities and tourist spots in anticipation of inbound demand.
(iv) Overseas expansion
We will utilize knowhow cultivated in businesses in Japan and abroad and expand business development and opportunities by partnering with local companies, to tap into the economic growth potential in the Southeast Asia region.
- 4. Companywide management indicators
|Management indices||FY2014||FY2017 Targets|
|Interest-bearing Debt /
TOKYU EBITDA Multiple (times)
* Operating profit + Depreciation + Amortization of goodwill + Disposal cost of fixed assets + Interest and dividend income + Investment gains from equity method
|Return on Equity (ROE)||7.3%||8.0%|