TOKYU FUDOSAN HOLDINGS 2017 Integrated Report
2017 Integrated ReportTokyu Fudosan Holdings Corporation
Group Finance Department, Investor Relations
Group Planning Policy Department, CSR Promotion Group http://www.tokyu-fudosan-hd.co.jp/english/
This report uses Forest Stewardship Council (FSCR)-certified paper produced from carefully managed forests.
This report uses ink derived from non-edible plants.
01 TOKYU FUDOSAN HOLDINGS 2017 Integrated Report TOKYU FUDOSAN HOLDINGS 2017 Integrated Report 02
Tokyu Fudosan Holdings Group's Medium- and Long-Term Management Plan
Value Frontier 2020
To Become a Corporate Group that Continues to Create Value
Tokyu Fudosan Holdings Corporation 2017 Integrated Report
TABLE OF CONTENTS
1st Chapter 03
Company Profile
At a Glance 03
Major Business Areas 05
Financial and Non-Financial Highlights 07
Tokyu Group slogan
Toward a Beautiful Age The Tokyu Group
Tokyu Group Philosophy
We hold this philosophy in common as we work together to create and support the Tokyu Group.
Mission Statement:
We will create a beautiful living environment, where each person can pursue individual happiness in a harmonious society.
Management Policy:
Work independently and in collaboration to raise Group synergy and establish a trusted and beloved brand.
Meet current market expectations and develop new ones.
Manage in harmony with the natural environment.
Pursue innovative management from a global perspective.
Value individuality and make the most of each person.
Through these means, we will fulfill our corporate social responsibilities.
Guidelines for Action:
Editorial Policy
The Tokyu Fudosan Holdings Group issues integrated reports to provide stakeholders with a better overall understanding of the Group's creation of value through all of its business activities. This report discloses the Group's medium- and long-term management policies and business strategies as well as financial and non-financial data prepared in accordance with the international integrated reporting framework of the International Integrated Reporting Council (IIRC). This fiscal year, the report focuses on the Group's medium- to long- term objectives with an emphasis on identified medium- to long-term materialities and the Medium-Term Management Plan (FY2017- FY2020) prepared to reflect those materialities. For more detailed financial and CSR information, please refer to the Company's website.
Fulfill your responsibilities. Collaborate to enhance each other's abilities. Reinvent yourself with a global awareness.
2nd Chapter 09
A Commitment from Top Management
3rd Chapter 17
The Story of Value Creation
A History of Creating New Value 17
The Value Creation Process 19
Identification of Materialities & Opportunities and Risks 21
Medium-Term Management Plan 23
4th Chapter 27
Value Creation Strategy
Urban Development segment 27
Residential segment 29
Property Management segment 31
Real Estate Agents segment 33
Wellness segment 35
Tokyu Hands segment 37
Innovation Business segment 39
5th Chapter 40
Attributes that Underpin the Group's Efforts to Create Value
A Message from the Chairman of the Board of Directors 40
Roundtable Discussion with Independent Outside Directors 41
ESG Management 43
Corporate Governance 44
Work Style Reforms 49
Social Needs 50
Environment 51
Executive Board 53
Independent Verification 56
Major Financial/Non-Financial Data 57
Consolidated Financial Statements 59
Corporate Data/Stock Information 93
Investor Relations Information
http://www.tokyu-fudosan-hd.co.jp/english/ir/
CSR information
http://www.tokyu-fudosan-hd.co.jp/english/csr/
Note on forward-looking statements
The forecasts and other forward-looking statements in this report are based on currently available information and certain assumptions determined as rational. Consequently, the statements herein do not constitute assurance regarding actual results by the Company. Actual performance may significantly differ from these forecasts due to various factors in the future.
01 TOKYU FUDOSAN HOLDINGS 2017 Integrated Report TOKYU FUDOSAN HOLDINGS 2017 Integrated Report 02
1st ChapterCompany Profile
At a GlanceOperating revenue
¥808.5 billionMarket conditions for the real estate market were stable, but gains on the sale of buildings for investors was down, and as a result, operating revenue declined slightly (down 0.9% year on year).
Operating profit
¥73.2 billionOperating profit was up 6.5% year on year. Profit from condominiums increased and the Real Estate Agents and the Wellness business- es performed well, resulting in higher profits for the fifth consecutive year, and the target of 73 billion yen set in the Medium-Term Management Plan was achieved.
Profit attributable to owners of parent
¥31.5 billionProfit attributable to owners of parent was up 9.7% year on year. This was the fourth consecutive increase and the first time in five years that this figure exceeded 30 billion yen.
Business Segment
Company Profile
Core Businesses
No. of customers
Approx. 10 million
The Group's wide-ranging business activities, which include the purchase of condomini- ums, resort and sports facility management, and Tokyu Hands membership programs, continue to attract a large customer base.
No. of Group employees
20,421As a result of the acquisition of the National Students Information Center in fiscal year 2016 and other factors, the number of group employees increased.
Percentage of full-time employees who are female
27%Various viewpoints are essential for maintain- ing a high level of competitiveness as a business enterprise, and consequently, the Group encourages diversity in its workforce including increased employment of women.
Innovation Business
6.0%
Asset Utilization Type Business
Innovation and Reinforcement
Urban Development Segment
Office Buildings and Commercial Facilities Floor space
1,458,000 m2
No. of rental housing under management
124,000 units
The Urban Development segment provides optimal services for a variety of needs related to urban real estate such as development and management of office buildings and commercial facilities, complex redevelopment projects, real estate investment trust management, and management of rental housing.
Residential segment
Cumulative No. of condominiums supplied
90,000 units
The Residential segment offers comprehensive support for enriching lifestyles of customers through the sale of high-quality, comfortable residential properties including condominiums and detached housing.
Stock Utilization Type Business
Rapid Growth
Property Management segment
No. of condominiums under management
742,000 units
The Property Management segment plays a vital role in the formation of quality social infrastructure through total support in real estate management, including building and equipment maintenance, operation, and repairs, for condomini- ums, office buildings, commercial and public facilities.
Real Estate Agents segment
Sales agency trading volume
¥1.1 trillion
The Real Estate Agents segment offers comprehensive solutions in real estate transactions, including real estate brokerage, consignment sales, and real estate sales, tailored to diverse customer needs.
Tokyu Hands
11.7%
Urban Development
30.0%
Tokyu Hands segment
No. of stores
Tokyu Hands 46
(Including FC stores and overseas stores)
Under the banner of "its hint market" brand slogan, the Group offers an extensive and diverse range of products and provides hints to discovery unique to Tokyu Hands to customers as a means of helping customers establish their own individual lifestyles.
Mature Markets Growth Markets
Increasing Group Added Value
New Core Business
Wellness segment
Wellness
11.4%
Fiscal 2016 Percentage of Operating Revenue
(Excluding Elimination/Headquarters)
No. of facilities
161
Future Growth Drivers
The Wellness segment helps customers create a wealth of high-quality time through cross-business collaboration in the fields of leisure, health and senior citizens by developing and managing resorts, leisure facilities, sports clubs and senior housing.
Real Estate Agents
9.9%
Innovation Business segment
Overseas Business Development
United States Indonesia China
The Innovation Business segment develops overseas businesses, and creates and promotes new business fields, such as custom-built houses, renovation projects and greenification.
Residential
13.1%
Property Management
17.9%
Strategic Business
03 TOKYU FUDOSAN HOLDINGS 2017 Integrated Report TOKYU FUDOSAN HOLDINGS 2017 Integrated Report 04
1st ChapterCompany Profile
Major Business AreasCommercial facility Tokyu Hands *Excluding FC stores
Overseas Business of the Tokyu Fudosan Holdings Group
Shanghai
(As of March 31, 2017)
Golf course
Resort hotel
Ski resort
Members-only fitness club
Tokyu Hands Sapporo Store
Niseko Mountain Resort Grand Hirafu The Hotel Niseko Alpen
Mongolia
China
Japan
Company Profile
Tokyu Land Corporation Local Subsidiary Tokyu Land Corporation (Shanghai) Ltd. Tokyu Livable, Inc. Local Subsidiary Tokyu Livable (Shanghai) Inc.
Tokyu Hands Nagano Store
Tangram Ski Circus (Madarao)
Tokyu Harvest Club Urabandai Grandeco & Urabandai Grandeco Tokyu Hotel
Grandeco Snow Resort Tokyu Hands Sendai Store
Myanmar
Laos Thailand
Vietnam
Philippines
Palau
Taiwan
Tokyu Livable, Inc. Joint Venture Tokyu Livable (Taiwan) Inc.
Hong Kong
Tokyu Livable Hong Kong Branch
Palau
Palau Pacific Resort
Tokyu Land Corporation Local Subsidiary
Madarao Tokyu Golf Club Tokyu Harvest Club Madarao &
Hotel Tangram (Madarao)
Tokyu Harvest Club Kyu-Karuizawa/Kyu-Karuizawa Annex & Kyu-Karuizawa Hotel
Tateshina Tokyu Ski Resort
Tokyu Harvest Club Tateshina Resort,
Tokyu Harvest Club Tateshina/Tateshina Annex & Tateshina Tokyu Hotel
Tateshina Tokyu Golf Course Tokyu Hands Kanazawa Store
Skijam Katsuyama
Tokyu Harvest Club Nasu
Mt. Jeans Nasu
Nasu Kokusai Country Club
Tokyu Harvest Club Kinugawa
Hunter Mountain Shiobara
Tambara Ski Park
Malaysia
Cambodia Brunei
Indonesia
United States
Mexico
Pacific Islands Development Corporation
Singapore
Tokyu Hands, Inc.
Jurong East Store/Orchard Store/Suntec City Store Tokyu Livable, Inc.
Equity interest in Orange Tee Holdings Pte Ltd.
Jakarta
Tokyu Land Corporation Local Subsidiary PT. Tokyu Land Indonesia
Los Angeles
Tokyu Land Corporation Local Subsidiary Tokyu Land US Corporation
New York
425 Park Avenue Redevelopment Project
Tokyu Harvest Club Skijam Katsuyama
Mochizuki Tokyu Golf Club
Tokyu Hands Okayama Store
Tsukuba Tokyu Golf Club
Metropolitan Area (Tokyo metropolitan area and three adjoining prefectures)
Oita Tokyu Golf Club Aso Tokyu Golf Club
Tokyu Hands Matsuyama Store Tokyu Hands Hiroshima Store Tokyu Sports Oasis Hiroshima Store
Tokyu Hands Oita Store
Sashima Country Club
Tokyu Harvest Club Atami Izusan & VIALA
Tokyu Harvest Club Yamanakako Mount Fuji
Tokyu Harvest Club Ito
Tokyu Harvest Club Amagi Kogen
Amagikogen Golf Course
Tokyu Harvest Club Shizunamikaigan
O ce buildings 55
Commercial facilities 21
Resort hotels 4
Golf courses 7
Senior residences 14
Tokyu Hands stores 17
Members-only fitness clubs 19
Tokyu Stay 17
Tokyu Hands Kumamoto Store Tokyu Hands Hakata Store
Tokyu Hands Kagoshima Store
Tokyu Harvest Club Hamanako Market Square Sasashima
Kansai Area (six prefectures)
O ce buildings 3
Commercial facilities 7
Golf courses 4
Tokyu Hands stores 7
Tokyu Hands Nagasaki Store
Resort hotels 3
Members-only fitness clubs 13
05 TOKYU FUDOSAN HOLDINGS 2017 Integrated Report TOKYU FUDOSAN HOLDINGS 2017 Integrated Report 06
Tokyu Fudosan Holdings Corporation published this content on 01 September 2017 and is solely responsible for the information contained herein.
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