To Our Shareholders and Investors
My name is Kazuo Takahashi 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.
Looking at the economy, while the corporate sector’s performance is said to be rallying moderately, the situation is unpredictable given the sluggish growth of domestic consumption and the uncertain outlook of international politics and external demand. Meanwhile, the business environment surrounding the Company is changing considerably in areas such as demographics, consumer behavior, points of contact with customers, business opportunities for the next generation, and the global market.
In these circumstances, we launched a new three-year medium-term management plan, “Make the Sustainable Growth,” in April 2018. As a company that will celebrate its centenary in 2022, the plan sets out three sustainability targets (sustainable urban development, sustainable corporate development and sustainable HR development) as basic policies to embody our aim to be a company that continues to achieve sustainable growth over the next 100 years by addressing changes taking place around the world. The plan follows the long-term vision established in 2012, “Three No. 1s in Japan and One Tokyu.”
When we look back on the three-year period from 2015 covered by the previous management plan, we have made steady progress in business with the full opening of Futako-Tamagawa Rise (April 2015), the commencement of operation of Sendai Airport in Japan’s first instance of the outsourcing of the operation of a government-managed airport to the private sector (July 2016), the opening of SHIBUYA CAST (April 2017), and the commencement of operations of a train for tourists to Izu (July 2017). Summing up our earnings aspect, we were able to lay the foundations for significant progress, as the transportation business and the hotel business remained strong, attributable to the impact of railway networks and the increase in inbound tourists, and as real estate rental revenues increased with the opening of large-scale properties. In the meantime, repeated transportation disruptions on the Den-en-toshi Line last autumn caused a great deal of inconvenience to many customers, and we understand that issues remain to be addressed for secure transportation.
In the newly launched management plan, we have set five key initiatives. They are:
(i) Tirelessly pursue “safety,” “security” and “comfort” for strengthening the core railway business;
(ii) Increase SHIBUYA’s global appeal through the redevelopment of Shibuya, described as a once-in-a- century project;
(iii) Continuously improve the TOKYU area’s value and life value for the TOKYU area’s sustained development;
(iv) Expand business through strategic alliances for steadily strengthening domestic and overseas business locations: and
(v) Make progress on workstyle innovation for the deployment of TOKYU workstyle reforms.
We believe that addressing these initiatives will contribute to achieving the three sustainability targets.
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 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