Tokyu : Management Strategy

Managementanagement S raStrategyegy ▶ ▶ Top Commitment

Top Commitment

■ Review of the previous three-yearmedium-term management plan (FY2018-2020)

• Taking Changes in the Social Environment as an Opportunity for Business Transformation and Structural Reform

Tokyu Understanding

In the previous medium-term management plan, we steadily implemented and completed priority measures, including large-scale development projects such as the Shibuya Scramble Square East Building and Minami-Ma- chida Grandberry Park, and safety investments such as the 100% installation of railway platform screen doors, etc.

On the other hand, we were greatly affected by the spread of COVID-19, and unfortunately we were unable to achieve our numerical targets.

Since our founding in 1922, we have grown by transforming our business portfolio in response to the changing needs of the times, based on our railway business and centered on urban and community development, which involves the development of areas along Tokyu's railway lines, etc. Currently, we focus on four business fields: transportation infrastructure business, urban development business, lifestyle service and retail business, and hospitality business. Because most of our business is based on the movement and accumulation of people, the restraint during the COVID-19 pandemic has had a significant impact on our business performance.

The damage to the railway business, which had been a stable pillar of revenues for many years, was particularly devastating. Up until two years ago, the priority issue we faced was how to alleviate congestion during rush hours in light of the population along the railway lines, which is expected to continue to increase after peaking in 2035, while keeping in mind issues such as the future decline in population and the decrease in commuting demand due to the working style reform. With regard to the forecast for the recovery of the number of passengers, we assume that the number of non-regular passengers will return to the previous level, but the number of passengers using commuter passes will not return to the previous level due factors such as the spread of remote work. These changes in the business environment and society are not limited to transportation infrastructure business, but extend to all businesses. As values and lifestyles continue to transform, we need to re-examine what social value we can provide through our business. If social issues change, what we do should and will change. We believe that this recognition is extremely important for sustainable management.

	Story Creation Value
	Strategy Management
Achievements	and Strategies
Business by
	Source

Once again, we will stand at the starting line "Toward a Beautiful Age" and realize transformation

■ New three-yearmedium-term management plan (FY2021-FY2023): Transformation

• Restore Revenues by Responding to Changes in the Business Environment and Implementing Structural Reforms

Creation Value of

Foundations Sustainability

Kazuo Takahashi

President & Representative Director

TOKYU CORPORATION

2020, when we began to formulate the new medium -term management plan, was the time when the COVID-19 pandemic had caused the most damage. Although it was not easy to make a new plan when the future was unpredictable, we first focused on rebuilding a business that was hurting, and our first goal was to become profitable in the first year of the plan, FY2021. This is a strong indication of the determination of management to avoid consecutive losses as a listed company that aims for long-term stable management.

The theme of the new medium-term management plan is transformation. Some time has passed since the

COVID-19 pandemic, and the challenges we face and the things we need to devise under the new normal are gradually becoming clearer. In light of this, we will work to restore profitability by responding to changes in the business environment and implementing structural re- forms. We are determined to use this crisis as an oppor- tunity, and as a turning point for new growth.

With regard to the business strategy of each segment, we will not only maintain financial health, but also incorporate elements of ESG and DX (digital transformation), and promote the growth of areas that are compatible with new lifestyles and work styles.

for

Information Company

16

17

Management Strategy ▶ Top Commitment

• Transportation Infrastructure Business

• Providing transportation services appropriate for the new normal

In addition to the core railway business, the transportation infrastructure business includes the bus business and airport management business.

Tokyu Railways will strive to provide social value and improve efficiency while placing safety and security at the core of our operations. For example, as an industry leader in the installation of platform screen doors and barrier -free measures, we have continued to make high-level capital investments, and through the development of a railway network based on directly connected operations, we will continue to enhance the value of the area and create social value by providing advanced services that facilitate the movement of all people through our railway network. In addition, we will continue to provide transportation services that are appropriate under the new normal by achieving a balance with revenues, through means such as by converting the Toyoko Line to one-man driving, optimizing operation schedules, and improving operational efficiency through the use of technology.

such as developing housing to attract younger generations to move to the area and revitalizing the town.

In urban areas, we will create attractions that can only be experienced in real life. In Shibuya, one of our most important locations, we have formed a partnership with LCRE (L Catterton Real Estate), a real estate development company of the LVMH (Moët Hennessy Louis Vuitton) Group, and by integrating it with the adjacent Bunkamu- ra, we plan to create a world-class quality facility that will represent Japan.

Another important thing is the real estate business portfolio. In addition to the portfolio by region and use, we will also control the ratio of ownership and sales with an awareness of capital efficiency. While we tend to perform mixed-use development that we will hold for 20 or 30 years, from the perspective of capital efficiency and early value enhancement, we will also work on asset turnover type building business.

• Lifestyle Service and Retail Business

- Respond quickly to changing customer needs

and market trends through collaboration with

distribution or the nature of new cinema complexes under the new normal. In order to be able to expand from the business of attracting customers, which involves moving people around, to the side of providing content, we established a BS broadcasting company as a joint venture with Shochiku. In addition, we have started a 5G base station sharing service jointly with Sumitomo Corporation in order to achieve a high-speed communication (5G) environment around Shibuya Station and the areas along Tokyu's railway line as soon as possible. In the lifestyle service and retail business, we believe that collaboration with other companies will be the next big step.

• Hospitality Business

• Establishing a system that is resilient to changes in the environment and provide services

The hotel and resort business was most severely affected by the spread of COVID-19. This was an abrupt turn

from the situation just before COVID-19, when the government was aiming for 40 million foreign visitors to Ja- pan. Hotels in the city center, which were dependent on inbound tourists and business travelers, were particularly affected. First of all, we need to review our operation system and lower the break-even point by reducing fixed costs in order to return to profitability, and at the same time, we need to take measures to capture the recovery demand after the COVID-19 pandemic is over.

From the perspective of turning a difficult situation into an opportunity, we will provide services flexibly and quickly to meet the needs that have expanded along with the COVID-19 pandemic, such as workation, tele- work, and micro-tourism. Regrettably, the hotel business is expected to record a loss again in FY2021 but we will aim to make it profitable in FY2022 and beyond.

See: Three-YearMedium-Term Management Plan, page 22 to 25

Strategy by Business, page 32 to 39

Tokyu Understanding

Story Creation Value

Strategy Management

andStrategies Achievements

On the other hand, for businesses outside of our railway lines, our medium to long-term approach is to maintain and increase the human flow of residents and tourists while taking into account the characteristics of each region, and to grow our business along with regional re-

digital transformation and other companies

The supermarket business has been performing well, as we have been able to capture nesting demand and the point linkage with Rakuten has led to the acquisition of

■ Developing human resources to support transformation

- Increase Corporate Value by Maximizing the Individual

Business by

Source

vitalization. However, for the time being, we will steadily capture recovery demand while improving our resistance to a decline in travel demand.

• Urban Development Business

• Development the areas served by Tokyu's railway lines and portfolio optimization

In the urban development business, sales of large-scale condominiums and detached houses along the railway lines are strong, reflecting the focus on the suburbs due to changes in lifestyles. In light of this situation, we will focus more than ever on the development of the areas along the railway lines that are rooted in the local com- munity. For example, there is a need for housing not only in front of stations, but also some distance away from stations, as long as the living environment is well maintained. In addition, in areas where the population is aging and there is no progress in generational change through resettlement, we will enhance the value of the area through both tangible and intangible measures,

new customer segments. We will continue to enhance our services and improve operational efficiency by expanding e-commerce, digital marketing, and utilizing technology.

In the department store business, while the decline in sales has been unabated since before the COVID-19 pandemic, we are developing a major food market in the Shibuya area with Toyoko Noren-gai and Tokyu Food Show as one of our focus areas, and at the same time, we are promoting reforms to create a cost structure that is commensurate with income by reallocating personnel to growth areas. Going forward, we will transcend the boundaries of existing business formats such as department stores, supermarkets, and shopping centers as Tokyu Retail to provide a shopping experience that exceeds customer expectations.

In the ICT media domain, Internet services from its communications Inc. have been strong, reflecting the growing need for indoor communication environments for telecommuting and online classes. Meanwhile, in the entertainment field like Tokyu Recreation, the pandemic given us an opportunity to think more than ever about

In our new medium-term management plan, we have set forth a policy of maximizing the individual as our human resource strategy. This means that each and every one of us should be aware of what we need to do in order to achieve the new medium-term management plan.

With human resource development in mind, which will contribute to the realization of the transformation set forth in the new medium-term management plan, we will continue to work on the development of our em- ployees, including their mindset.

We have always put a lot of effort into our human resource development programs, including exchanges with other companies. However, group education alone is not enough to develop the individual. We believe that by considering what the company can provide according to the wishes and abilities of each individual, and by building a mutual relationship through engagement, the individual in the true sense of the word will come alive, and the existence of diverse individuals will surely bring about innovation.

We have established the System for Fostering Entrepreneurial Employees (SK System) as an opportunity for

taking on challenges so that employees can demonstrate their individual strengths, and we value the seeds of innovation that are born from this system. Various business ideas have been generated through this system, and we will back them up as something that will lead to new businesses.

Also, in terms of empowering women, we have been hiring more women over the years, and the number of female management-level employees has been increas- ing. In the future, we expect to see more women being promoted to senior management positions. As a management strategy, the company has been focusing on initiatives to utilize diversity and employee health man- agement, and has been recognized for seven consecutive years under the Health & Productivity Stock Selection, and nine consecutive years as a Nadeshiko Brand, the only company in all industries to be selected for this length of time.

See: Human resource strategy, page 40 to 43

Empowerment of women, page 42

Creation Value of

for Foundations Sustainability

Information Company

18

19

Management Strategy ▶ Top Commitment

■ Value creation for 2030

• Maximizing the Value of the Area by Creating a Series of Unique and Attractive Communities -

■ Thoughts on sustainable management

-"Toward a Beautiful Age"

Tokyu Understanding

In 2019, we compiled our management stance and area and business strategies through 2030 into a long-term management initiative.

As a comprehensive lifestyle industry that contributes to the lives of our customers, we have carried on the resolution of social issues through our business as part of our DNA, and we have earned the support of our customers by expanding into a variety of business fields in response to the changing times in order to continuously enhance area value along the Tokyu railway lines and elsewhere.

Under the new normal, we believe that a lifestyle that combines telework and mobility will become wide- spread, in which people will not have to commute to the center of the city five days a week, but will be able to make short trips to nearby places and live an active life. For this reason, our goal is to create communities where people can "work," "live" and "play" in close proximity to where they live, and when we look at the entire railway line, we see that the value of the railway line itself is enhanced by a series of unique communities. It is not enough to aim for communities that look the same ev- erywhere, even if they have all the necessary functions, it is also important to incorporate the color and characteristics of each place. Along the Tokyu railway line, a number of attractive communities have been developed by Tokyu, such as Futako-tamagawa, where urban and natural environments coexist, Tama-plaza, a residential area with abundant greenery that is being developed as a next-generation suburban town, and Minami-machida, where parks and commercial facilities have been integrated around the station. If these hubs can be directly connected by stress-free mobility (transport), we believe that the mobility patterns of people will change.

In addition, as a new growth opportunity, we established a new department specializing in uniformly implementing the digitization of service provision in each business area from October 2021 in order to promote urban development that combines digital platforms that support people's lifestyles. By doing so, we aim to create the next generation of Self-contained and dispersed urban development by capturing latent needs using digital technology in addition to the real customer contact that

has been the hallmark of the Group up until now.

One of the characteristics of our company is that each business is closely related to each other within a single base or area in order to create attractive commu- nities. In the Futako-tamagawa area mentioned above, the station is the starting point and the company leases shopping centers and offices in adjacent areas, while its consolidated subsidiaries operate supermarket business and hotel businesses, and also engage in subdivision and sale of tower condominiums. Before the redevelop- ment, it was mostly a shopping town. However, it has been transformed into a community visited by a diverse group of people, including office workers and families. In this way, we are working to uncover new needs and provide unprecedented added value through collaboration among our businesses. In addition, we are aggressively pursuing alliances with other companies for areas that cannot be solved by the Group alone. For example, in the Shinjuku Kabukicho 1-chome Redevelopment Project, which is scheduled to be completed and open in 2023, we will collaborate with Sony Music Enter- tainment, our partner in the operation of theaters and live halls, to provide not only hotels and cinemas in the facilities, but also attractive entertainment for everyone around the world from the entire Shinjuku Kabukicho area together with the people of the community.

See: long-term management initiative, page 22 Self-contained and dispersed urban structures, page 11 Future vision, page 14 and 15

Our company will soon be celebrating its 100th anniversary in 2022. However, when we look ahead, now there are doubts about whether the global environment can be maintained for the next 100 years. For this reason, we believe that only by addressing social and environmental issues head on will we be qualified to talk about the next 100 years and prosperity. Although we still aim to be a sustainable company, before we can do that, we need to realize the premise that there is a sustainable society. For this reason, we have changed our key sustainability theme for the environment from low-carbon to decar- bonization, and set a goal of zero CO2 emissions. As for the response to the impact of climate change, because we are in the business of supporting urban infrastructure, we need to consider not only physical measures based on long-term projections, but also what we can do as a business opportunity to encourage behavioral change in society.

In addition, urban and community development that benefits only the business and sacrifices the local community cannot be sustained. We have been doing business in this area for 100 years, experiencing that even if profitability temporarily declines, prior measures that truly benefit the people living along Tokyu lines become the seeds for future business that will eventually come back to us. Our actions to protect intangible assets such as safety, security, and trust that our predecessors have built up, and to further refine them in the future so that they can be used for the next generation, will lead to a successful combination of our company's growth and the improvement of the sustainability of communities. This is what our Long-termRecycling-based Business Model is all about.

Although we have been hit by an unpredictable pandemic from the spread of COVID-19, as a company that supports urban infrastructure, the Group has a responsibility to continue our business and is made up of essential workers, that is, employees who work at real sites such as railway, buses, supermarkets, senior facilities, daycare for school children and pre-school children, and hospitals. When I think of the employees who are fulfilling their duties at the front line of customer contact under the

risk of infection, including the frequent declarations of a state of emergency, I cannot help but feel grateful. The safety of our employees is an important prerequisite for business continuity, and we take measures against infectious diseases and provide vaccinations in the workplace to ensure the best possible working environment.

We will continue to protect our corporate value and our brand value, as well as the trust that customers have in the Tokyu brand, by ensuring safety and security in all our business activities, which is the foundation of our business. With this as our primary foundation, we will continue to provide services that resonate with custom- ers, including those living along our railway lines, and we will create communities that are not just beautiful on the surface, but that enable people to truly feel comfortable using the products and services of the Tokyu Group. In order to achieve this goal, the Tokyu Group will once again stand at the starting line of "Toward a Beautiful Age" and realize transformation.

See: Group slogan

"Toward a Beautiful Age-Tokyu Group" page 2 Decarbonation and a Recycling-Based Society, page 50 to 55

Long-termRecycling-based Business Model, page 10

	Story Creation Value
	Strategy Management
Achievements	and Strategies
Business by
	Creation Value of Source
Sustainability	for Foundations
	Information Company

20

21

Management Strategy ▶ Overview of the Three-YearMedium-Term Management Plan

Overview of Three-YearMedium-Term

Management Plan

In September 2019, the company announced its long-term management initiative for 2030. In May 2021, even in face of the COVID-19 pandemic, we formulated a three-yearmedium-term management plan (FY2021-FY2023) in light of changes in the business environment, while promoting initiatives for the long-term management initiative.

Changes in the Value Demanded

Understanding

Long-Term Management Initiative

Digitalization, demographic changes and other social changes	In addition, in FY2020, society underwent dramatic changes due
are accelerating, and our business environment is undergoing	to the spread of COVID-19. Despite these circumstances, our vision
significant changes like never before, including the actualization of	for the future remains unchanged, and under the Group slogan
climate change risks. In this environment, we formulated a long-	"Toward a Beautiful Age," we will continue to tackle important

We will capture signs of mid-term paradigm changes based on changes in society, including behavior and needs, and build strategies for each business to achieve sustainable growth.

In response to changes in lifestyles and society, such as an increase in the number of hours spent at home and a decrease in commuting to work in the city, we believe that we need to shift from a business structure based on the traditional concept of "suburbs as the center for housing and urban centers as the center

for office and commercial activities" to a business development based on the concept of self-contained and dispersed urban structures that capture diversifying and multilayered needs, which will lead to growth in each of our businesses.

In addition, we will stimulate demand for intra-regional travel by arranging functions for work, living, and play at the stations along Tokyu's railway lines that serve as transportation nodes.

Tokyu

Creation Value

term management initiative in September 2019 to speed up efforts	sustainable themes and implement a Long-termRecycling-based
to optimize group management and clearly indicate Tokyu's visions	Business Model.
for the future and the direction in which Tokyu will go.

2019	2021	2030
(now)

Long-term management initiative

Three-yearmedium-term

management plan

	Increase in time at home	Changes in lifestyles	Decrease in urban commuters	Diversification of values
	Home to nearest station				Tokyu areas			Urban areas
	(small areas)			(around traffic hub stations)		(wide areas incl. Shibuya, Yokohama, etc.)
	Improve quality of time/space at home		Stimulate demand for		Create charm that can only be
		intraregional travel			experienced physically
	Highest level in Japan			As a symbol of areas served by Tokyu's railway lines		Admired by people around the world
	Providing houses and communication			Area branding and building complexes		Development of foreign based cities
	facilities meeting new demands, IENAKA			Revitalization through the functional		Proposal for urban lifestyles
	(in-home) solutions, and convenience of			placement of work, living, and play		(improved residence functions)
	proximity to train stations			and invitation of industry-government-		Entertainment, communication,
				academia collaboration		and emergence

Story

Strategy Management

Group slogan

Sustainable

management

Group slogan

Toward a Beautiful Age-TokyuGroup

Sustainable management

Material	Safety & Security	Quality of Living Environment
sustainability	Urban and Community Development	HR Development
themes	Decarbonation, Recycling-based Society	Corporate Governance & Compliance

Long-term management initiative

Creating a beautiful living environment for our future

Growth strategy for 2030

Unchanging values

Creating a beautiful living environment for our future

Continuous solution of social issues through business

Shift to business development based on the concept of self-contained and dispersed urban structures

We will no longer have the conventional single-axis structure of "homes = suburbs," and "offices and commercial space = city center," but will instead steadily capture the diversifying and multilayered needs of our customers and link them to the growth of each business

Review of the Previous Three-YearMedium-Term Management Plan (FY2018-2020) and Future Issues

Achievements	and Strategies
Business by
	Value of Source

Long-term

management

initiative

	and overseas	infrastructuresTransportation	developmentUrban	RetailandserviceLifestyle	Hospitality
	Shibuya
						Area strategy
Areas served by	Tama Den-en-toshi					Business strategy
Tokyu's railway
lines						Target management
						indicators
	Key areas in the areas					Contribution
	served by Tokyu's
					to society
	railway lines
						Challenges
Areas not	Other areas in Japan					for the future
served by
Tokyu's railway
lines

We steadily implemented and completed priority measures, including large-scale development projects such as the Shibuya Scramble Square East Building and Minami-Machida Grandberry Park, and safety investments such as the 100% installation of platform screen doors.

On the other hand, our major industries such as transportation business (railway, buses, etc.), hotels and department stores were greatly affected by the spread of COVID-19 (see "Strategies and

Achievements by Business" on page 32 to 39), and we were unable to achieve our numerical targets.

In the process of the new normal under the COVID-19 pandemic, it is expected that the situation will continue to be uncertain due to the repeated convergence and spread of the infection. We will restore profitability by steadily implementing responses to changes in the business environment and implementing structural reforms.

	Creation
Sustainability	for Foundations

Background Behind the Formulation of the Three-YearMedium-Term Management Plan

• Operating Profit

• TOKYU EBITDA

▶ Interest-bearing

Debt/TOKYU EBITDA

In formulating the three-yearmedium-term management plan, we have sorted out the changes in the business environment that should be especially considered over the next three years, while

• Changes in the Business Environment

Decrease in people traveling and meeting due to COVID-19

Accelerated transition of work and life styles

maintaining the same values. We have formulated our Basic Policies (see page 24) with an eye to how we will respond to these changes.

Shrinking population, declining birthrates and an aging population,

and their regional disparities

Rapid shift to a decarbonized society at the global level

Rapid development of digital technology

(Billion yen)			97.0
77.0	81.9	78.0
		68.7
Plan		Plan	Plan	-31.6
FY2018	FY2019
			FY2020

(Billion yen)		206.4
175.0 176.6	184.5 176.5
		74.7
Plan	Plan	Plan
FY2018	FY2019	FY2020

Multiple

End of FY2020

(Plan) 5.3 times

(Results) 15.8 times

22

23

Management Strategy ▶ Overview of the Three-YearMedium-Term Management Plan

Basic Policies and Key Strategies of Three-YearMedium-Term Management Plan

First Year Achievement Standards

Understanding

The basic policy of this management plan is transformation, and	To achieve this transformation, we have set four key strategies:
responding to the changes in the business environment accelerated	strengthening the business structure of the transportation
by COVID-19 and promoting structural reforms, we aim to restore	infrastructure business, supporting new values in the real estate
the scale of our earnings and position the next three years as a	business, evolving into businesses and services that respond to new
turning point for new growth.	lifestyles, and promoting structural reforms in each business.

Basic policies "変革 (Henkaku) ": Revenue recovery and growth by responding to changes in the operating environment

In the first year of the plan, we will steadily implement structural reforms and other measures to ensure that we return to profitability, and at the same time, we will proceed with reforms to restore the scale of earnings to that before the COVID-19 pandemic as soon as possible. In the second year and beyond, we will work to achieve a steady recovery in profits in each business. In addition, we will maintain our financial health by aiming for a recovery in the interest-bearing debt to EBITDA ratio to the level of 7 times.

(Reference)

FY2021

FY2020

TOKYU EBITDA

74.7 billion yen

118.7 billion yen

Operating profit

-31.6 billion yen

20 billion yen

Interest-bearing Debt/

15.8 times

10.3 times

TOKYU EBITDA Multiple

Tokyu

Creation Value

Aim to restore the revenue level by responding to current changes in the operating environment and implementing structural reforms and other measures and position the current period as "the turning point to new growth"

Investment Plan and Shareholder Returns

Story

Revenue	• FY2021: Secure operating profit of 20 billion yen	Maintenance	Interest bearing debt / TOKYU EBITDA multiple
of financial
recovery	• Achieve a steady profit recovery in each business	Recover to 7 times (FY2023)
health

We will review and re-examine our investment plans according to our business performance, with an awareness of financial health. We will steadily implement investments in safety, maintenance and renewal, ongoing large-scale projects in Shinjuku and Shibuya, and

investments related to structural reform.

Our approach to shareholder return is to aim for a dividend payout ratio of 30% or more in the medium term, and we plan to pay an annual dividend of 15 yen for the current fiscal year.

Management

• Strengthen business structure in the transportation infrastructure business

Investment

Steadily implement safety and maintenance/

Concept of	Continue stable dividend payments and aim for

Strategy

Key	• Respond to new values in the real estate business
strategies	• Change business and services corresponding to new lifestyles

• Implement structural reform in each business

* TOKYU EBITDA = Operating profit + Depreciation + Amortization of goodwill + Disposal cost of fixed assets + Interest and dividend income + Investment gains (loss) from equity method

plans renewal investment, large projects in progress, and investments related to structural reforms

Planned capital investment for FY2021: 127.7 billion yen [Reference] (Investment in growth : 53.8 billion yen / Investments for

existing business : 73.9 billion yen)

shareholder	a dividend ratio of 30% or more in the medium
to long term, with an awareness of the total
returns
return ratio

Achievements	and Strategies
Business by

Changes in Environmental and Business Strategies

Toward the Future of Shibuya

In light of the changes in the environment surrounding each of	responding to environmental changes and implementing structural
our businesses, we will not only restore profitability, but also turn	reforms rather than extending existing business models.
challenges into opportunities and turning points for new growth by

	Past	From now
Transportation	Business to meet demand for commutation to central Tokyo	The number of passengers carried will not return to the
Infrastructure	⇒ Investment in large facilities to raise transportation	previous level even after the pandemic
(Transportation	capacity and reduce overcrowding and long term	⇒ Change from earnings structure focusing on commuters
Segment)	recovery of invested capital	and create demand for intraregional travel
	Urban development through the redevelopment of urban	Property selection and the trend of the survival of the
Urban	fittest among areas will continue to grow with changes
infrastructure, etc.
Development	in work styles and demand conditions
⇒ Supply rental properties such as offices and commercial
⇒ Re-examine the uses and sizes demanded
(Real Estate	spaces based on building complexes and increase area
Segment)	Develop growth areas with a focus on asset
value
	replacement and fund efficiency
Lifestyle Service	Raise the value of Tokyu areas through various businesses	Physical and digital services will be seamless as changes
and Retail	and bundles	in lifestyles accelerate
(Life Services	⇒ Develop business with a focus on physical contact with	⇒ Focus on areas where Tokyu can exert its strengths and
Segment)	customers and services and also work on e-commerce	grow services that meet current demand
Hospitality	The overall industry saw rapid growth with increase in	Competition is intensifying in addition to uncertainty
inbound tourism	about the future
(Hotel and Resort
⇒ Continue the conventional hotel chain business	⇒ Implement structural reforms and take measures to
Segment)
Actively open new hotels, particularly in urban areas	raise profitability

Toward the future of Shibuya, the most important center of the city, we are promoting development plans, including public-private partnerships, and multilayered initiatives that contribute to improving the attractiveness of the city. In addition, on July 29, 2021, the company and Tokyu Land Corporation announced the Greater SHIBUYA 2.0 urban and community development strategy for the area around Shibuya Station and the greater Shibuya area, aiming to create a sustainable city by providing social value unique to the Tokyu Group. In addition to further strengthening the Entertainment City SHIBUYA and the Greater SHIBUYA Concept that we have been promoting, we will organically connect the three elements of "work," "play," and "living," as well as digital and sustainable elements that form the foundation of these three elements in an aim to realize a Shibuya-style urban life that allows people to experience a way of life that is uniquely their own along with affluence in harmony with people, nature, and society.

Greater SHIBUYA 2.0

Offering a Shibuya-style

urban life

Work	Play
Flexible	Touchable

Live

SwitchableDigital

Sustainable

Development plan area

				Expansion of development area to
				the area surrounding the station
Being planned		Creation of an axis of liveliness that will become a symbol
			of Entertainment City SHIBUYA
Dogenzaka 2-24				Tokyo Metro Fukutoshin Line
Land Development Plan
(Currently Tokyu Department Store Main Store land)			Shibuya Cast			AoyamStraeet
JR Yamanote Line, Saikyo Line,
	Shonan Shinjuku Line
Tokyu Hands Shibuya Store	Miyashita
			Park
	Seibu Department Store		Development of a new pedestrian network
Bunkamura	Loft Building					that enhances continuity and unity
Seibu Department Store
Tokyu	B Building	Shibuya Tokyu
Department Store	Seibu Department Store
REI Hotel	Miyamasuzaka	Shibuya Hikarie
	A Building
	QFRONT MAGNET by
Under development		SHIBUYA 109				Under development
Shibuya Scramble Square Phase II	Shibuya					Shibuya 2-Chome 17 District
Station		Shibuya Cross
(Central Building, West Building)
			Tower	Category 1 Urban Redevelopment Project
Keio							Shibuya		Konno Hachiman Shrine
Inokashira
						Police Station
Line
Shibuya Fukuras					Shibuya Scramble Square Phase I
Tokyu		Cerulean Tower						(East Building)
Den-en-toshi	246
Line	Route
Shibuya Solasta	Shibuya				Shibuya Stream
	Cultural Center Owada
Under development						Shibuya
Shibuya Station Sakuragaoka Exit area
						River
Category 1 Urban Redevelopment Project				Shibuya Bridge
*An association in which Tokyu Land Corporation participates			Hachiman			Tokyu Toyoko Line
							Street

Development in five blocks in the central station area

Steady implementation of the ongoing redevelopment plan

Creation Value of Source

for Foundations Sustainability

Information Company

24

25