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.
The Japanese economy remains on a modest recovery path, with a continued recovery in consumer spending thanks to an improvement in the employment and income environments, steady corporate earnings, and growing capital spending, despite an uncertain outlook due to trade tensions and political uncertainties overseas. 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, we have adopted three sustainability targets (sustainable urban development, sustainable corporate development and sustainable HR development) as basic policies that embody our aim of being a company that continues to achieve sustainable growth over the next 100 years.
In FY2018, which is the first year of the plan, we pursued a number of initiatives including opening SHIBUYA STREAM and SHIBUYA BRIDGE (in September) and launching Q-Seat, a paid seat reservation system, on the Oimachi Line (in December). Meanwhile, in Aoba-ku, Yokohama (the Tama Plaza area), we promoted next-generation suburban development through initiatives such as the opening of CO-NIWA Tama Plaza, a facility focused on enhancing local convenience, (in October) and a suburban MaaS demonstration experiment (from January through March). Looking at earnings, although businesses such as the hotel business were affected by natural disasters, including heavy rain and earthquakes, every business including the real estate leasing business performed more or less solidly and profits were higher than planned.
In FY2019, openings of large-scale projects in our key locations such as SHIBUYA SCRAMBLE SQUARE Phase I (East Bldg.) and the grand opening of Minami-machida Grandberry Park will continue, and we also plan to complete installation of fixed platform fences with sensors at all stations (excluding the Setagaya Line and Kodomonokuni Line) for the realization of safe and reliable railway transportation.
We also recognize that we must adapt to changes in the environment surrounding each business with a sense of urgency. We plan to split the railway business and use this as an opportunity to change the existing trade name, which has been used for more than 70 years, in September.
As the representative company of the Tokyu Group, we will continue to assume responsibility for creating new added value through the promotion of collaboration between companies that goes beyond business boundaries and we will lead the sustainable growth of the Tokyu Group.
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