Tokyu : ［Delayed］Consolidated Financial Statements First Three Quarters of the Fiscal Year Ending March 31, 2021

Tokyu Corporation

Consolidated Financial Statements First Three Quarters of the Fiscal Year

Ending March 31, 2021

(April 1, 2020 - December 31, 2020)

This document has been translated from the original Japanese as a guide for non-Japanese investors. It contains forward-looking statements based on a number of assumptions and beliefs made by management in light of information currently available. Actual financial results may differ materially depending on a number of factors, including changing economic conditions, legislative and regulatory developments, delay in new product and service launches, and pricing and product initiatives of competitors.

SUMMARY OF FINANCIAL STATEMENTS [Japanese Accounting Standards] (Consolidated)

For the First Three Quarters of the Fiscal Year Ending March 31, 2021

Tokyu Corporation

February 10, 2021

Stock Code:	9005
URL:	https://www.tokyu.co.jp/
President	Kazuo Takahashi

Listed exchanges:
Inquiries:
Planned date for submission of quarterly financial reports:	February 10, 2021
Scheduled date of commencement of dividend payment:	－
Supplementary documents for quarterly results:
Quarterly results briefing (for institutional investor and analysts):

Tokyo Stock Exchange First Section Katsumi Oda, Senior Manager, Accounting and IR Group Telephone: [phone]

YES

NO

* Amounts of less than ¥1 million have been rounded down.

1. Consolidated Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2021

(April 1, 2020 to December 31, 2020)

(Figures in percentages denote the year-on-year change)

1) Consolidated Operating Results

Million yen

Nine months ended December 31, 2019

Change (%)	Change (%)
Operating revenue .............................................................. 685,855	-21.0	867,949	1.5
Operating profit ................................................................... -15,945	-	66,114	0.5
Recurring profit ................................................................... -12,594	-	66,438	2.1
Profit attributable to owners of parent ................................ -26,523	-	46,024	-1.6
Net income per share (¥) .................................................... -43.91	75.77
Net income per share (diluted) (¥) ...................................... -	-
Million yen

Note: Comprehensive Income: Nine months ended December 31, 2020: ¥-23,852 million [-%]

Nine months ended December 31, 2019: ¥50,188 million [8.3%]

2) Consolidated Financial Position

As of December 31, 2020	As of March 31, 2020
Total assets .......................................................... Net assets ............................................................ Equity ratio (%) .....................................................	.............. .............. .............. 2,522,063 772,709 28.6	2,537,196 809,614 29.8

Reference: Shareholders' equity: As of December 31, 2020: ¥722,314 million

As of March 31, 2020: ¥757,003 million

2. Dividends
Dividend per share - end of first quarter (¥)	-	-
Dividend per share - end of first half (¥)	10.00	12.00
Dividend per share - end of third quarter (¥)	-	-
Dividend per share - end of term (¥)	5.00	11.00
Dividend per share - annual (¥)	15.00	23.00

FY ending March 31, 2021	FY ending March 31,	FY ended March 31,
(forecast)	2021	2020

Notes: (1) Revisions to dividend forecasts published most recently: Yes

(2) The interim dividend of ¥12.0 for the fiscal year ended March 31, 2020 includes a commemorative dividend of ¥2.0.

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)

(Figures in percentages denote the year-on-year change)

Million yen

Full year

Change (%)

Operating revenue .....................................................	931,000	-20.0
Operating profit ..........................................................	-35,000	-
Recurring profit ..........................................................	-40,000	-
Profit attributable to owners of parent ........................	-60,000	-
Net income per share (¥) ...........................................	-99.32

Note: Revision to consolidated business performance forecasts published most recently: Yes

* Notes

• (1) Changes in important subsidiaries during the consolidated quarter (cumulative) under review (changes in specified subsidiaries resulting in changes in the scope of consolidation): No

• (2) Application of specific accounting treatment to the preparation of quarterly consolidated financial statements: No

• (3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions

  • 1) Changes in accounting policies with revision of accounting standards, etc.: No

  • 2) Changes in accounting policies other than 1): No

  • 3) Changes in accounting estimates: No

  • 4) Restatement of revisions: No

• (4) Number of shares issued (common stock)

  • 1) Number of shares issued at the end of the term (including treasury stock) (shares)

    As of December 31, 2020: 624,869,876 As of March 31, 2020: 624,869,876

  • 2) Number of treasury stock at the end of the term (shares)

    As of December 31, 2020: 20,775,493 As of March 31, 2020: 20,858,041

  • 3) Average numbers of shares issued during the terms (quarterly consolidated accumulation periods) Nine months ended December 31, 2020: 604,085,321

    Nine months ended December 31, 2019: 607,381,505

(Note) The number of treasury stock includes shares of the Company held by a group of shareholding employees in trust and compensation for Directors in trust, as follows:

As of December 31, 2020: 310,500 shares As of March 31, 2020: 395,600 shares

* The summary of financial statements is not subject to audit.

* Explanations about the proper use of financial forecasts and other important notes

(Notes on forecast results)

The forecast results presented above are based on information available on the date of this announcement and assumptions considered reasonable.

Actual results may differ materially from the forecasts depending on a number of factors.

For details on the forecast results, please see the statement under the heading of "1. Qualitative Information on Consolidated Financial Results, etc. for the First Three Quarters of FY2020, (3) Explanation about the future outlook, including forecast for consolidated earnings" in the accompanying materials.

(Method of acquiring supplementary documents for quarterly results)

The "Summary of Results for the First Three Quarters of FY2020" will be disclosed on Timely Disclosure network (TDnet) and our IR website today (February 10, 2021).

 Accompanying Materials - Contents

1. Qualitative Information on Consolidated Financial Results, etc. for the First Three Quarters

Ended December 31, 2020 ................................................................................................................. Page 2

(1) Explanation about Consolidated Financial Results ....................................................................... Page 2

(2) Explanation about Consolidated Financial Position ...................................................................... Page 4

(3) Explanation about the Future Outlook, Including Forecast for Consolidated Earnings ................ Page 4

2. Quarterly Consolidated Financial Statements and Primary Notes . .................................................... Page 5

(1) Quarterly Consolidated Balance Sheets ....................................................................................... Page 5

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statements of

Comprehensive Income ................................................................................................................ Page 7

Quarterly Consolidated Statements of Income ............................................................................. Page 7

Quarterly Consolidated Statements of Comprehensive Income ................................................... Page 8

(3) Notes to Quarterly Consolidated Financial Statements ................................................................ Page 9

(Notes Regarding the Premise of a Going Concern) .................................................................... Page 9

(Notes If There Is a Considerable Change to Shareholders' Equity) ............................................ Page 9

(Matters Related to Consolidated Quarterly Statements of Income) ............................................ Page 9

(Additional Information) ................................................................................................................. Page 9

(Segment Information) ................................................................................................................. Page 10

1. Qualitative Information on Consolidated Financial Results, etc. for the First Three Quarters Ended December 31, 2020

(1) Explanation about Consolidated Financial Results

During the first three quarters under review, the Japanese economy faced extremely challenging circumstances, with continued heavy corporate profit declines under the adverse effects of COVID-19, although signs of recovery were observed in certain sectors. Conditions in the first three quarters, such as restraints on outings and movements in response to spreading COVID-19, weakened consumer demand and declined service use, seriously affected businesses operated by the Company and its consolidated subsidiaries.

Operating revenue for the first three quarters under review decreased 21.0% year on year, to ¥685,855 million, reflecting demand decline that occurred in all sectors under the adverse effects of the spread of COVID-19. The operating loss amounted to ¥15,945 million (compared to operating profit of ¥66,114 million in the same period of the previous fiscal year). The recurring loss came to ¥12,594 million (compared to recurring profit of ¥66,438 million in the same period of the previous fiscal year). The loss attributable to owners of parent was ¥26,523 million (compared to profit attributable to owners of parent of ¥46,024 million in the same period of the previous fiscal year).

Operating results on a segmental basis are as follows. The results for individual segments include inter-segment internal revenues or transfers where applicable. The Company presents operating profit for each reported segment as segment profit in this document.

(i) Transportation

In the Transportation segment, the number of passengers carried in the railway operations of Tokyu Railways (numbers shown for the first three quarters of the previous fiscal year are operating results for the railway business of Tokyu Corporation and Tokyu Railway) plunged 33.9% overall, reflecting a 34.6% decline in the number of commuters carried and a 33.0% fall in the number of non-commuters carried, both of which were attributable to declined rail use due to the spread of COVID-19.

As a result, operating revenue for the segment decreased 30.8% year on year, to ¥111,629 million, resulting in an operating loss of ¥12,320 million for the segment (as opposed to operating profit of ¥29,498 million in the same period of the previous fiscal year), despite cost cutting initiatives taken by Tokyu Railways.

(Operation results of the Company and Tokyu Railway's railway operations)

Categories	Units	First three quarters of the previous fiscal year	First three quarters of the fiscal year under review
April 1, 2019 to December 31, 2019	April 1, 2020 to December 31, 2020
Number of operating days	Days	275	275
Operating distance	Kilometers	104.9	104.9
Operating distance of passenger trains	Thousand kilometers	114,431	115,421
Number of passengers carried	Non-commuter	Thousand passengers	360,711	241,648
Commuter	Thousand passengers	555,859	363,801
Total	Thousand passengers	916,570	605,449
Passenger revenue	Non-commuter	Million yen	58,927	39,000
Commuter	Million yen	49,502	33,863
Total	Million yen	108,429	72,863
Miscellaneous income from railway operations	Million yen	11,733	10,830
Total revenues	Million yen	120,162	83,693
Average passenger revenue per day	Million yen	394	265
Operating efficiency	%	52.3	33.0

(Note) Calculation method of the operating efficiency

Operating efficiency

Number of passengers carried = x xAverage service distance

100

Operating distance of passenger trains

Average transportation capacity

(ii) Real Estate

In the Real Estate segment, operating revenue decreased 5.4% year on year, to ¥146,539 million, mainly due to the absence of large orders received by Tokyu Geox Co., Ltd. in the same period of the previous fiscal year. Operating profit stood at ¥22,496 million, up 1.4% year on year, reflecting sales of highly profitable properties in the Company's real estate sales business, despite the temporary closing of facilities in the Company's real estate leasing business following the declaration of a state of emergency.

(iii) Life Service

In the Life Service segment, operating revenue fell 15.7% year on year, to ¥439,925 million, mainly due to a trend of staying at home in view of COVID-19's spread, and the adverse effects caused by the suspension of various facilities' operations and the reduction of their operating hours in the wake of the declaration of a state of emergency. The operating loss came to ¥3,544 million (as opposed to operating profit of ¥10,738 million in the same period of the previous fiscal year).

(iv) Hotel and Resort

In the Hotel and Resort segment, the occupancy rate plummeted to 32.5% (down 51.2 points from the same period of the previous fiscal year), reflecting a sharp decline in the use of facilities at most hotels operated by Tokyu Hotels Co., Ltd. in hotel operations following their operational resumption, in addition to their temporary closing in response to a state of emergency declared to deal with COVID-19's spread.

Consequently, operating revenue plunged 62.2% year on year, to ¥29,426 million, resulting in an operating loss of ¥23,023 million (compared to operating profit of ¥3,077 million in the same period of the previous fiscal year).

• (2) Explanation about Consolidated Financial Position

  Assets

  Total assets decreased ¥15,132 million from the end of the previous fiscal year, to ¥2,522,063 million at the end of the first three quarters under review, primarily due to a decrease in notes and accounts receivable - trade.

  Liabilities

  Liabilities increased ¥21,772 million from the end of the previous fiscal year, to ¥1,749,354 million, attributable to interest-bearing debt* of ¥1,211,673 million (rising ¥60,662 million year on year), even though notes and accounts payable - trade decreased.

  Net assets

  Net assets declined ¥36,905 million from the end of the previous fiscal year, to ¥772,709 million, chiefly reflecting the posting of a loss attributable to owners of parent.

  * Interest-bearing debt: the sum of debt, corporate bonds, and commercial papers

• (3) Explanation about the Future Outlook, Including Forecast for Consolidated Earnings

The Company has revised its earnings forecast for the fiscal year ending March 31, 2021 that was announced on November 10, 2020. The operating revenue forecast has changed to ¥931.0 billion (down 1.0% from the previous forecast). The forecasts for the operating loss, recurring loss and loss attributable to owners of parents have changed to ¥35.0 billion (from an operating loss of ¥20.0 billion), ¥40.0 billion (from a recurring loss of ¥25.0 billion) and ¥60.0 billion (from a loss attributable to owners of parents of ¥45.0 billion), respectively.

Based on the revision to the earnings forecast, the Company has revised the year-end dividend forecast.

The Company plans to pay annual dividends of ¥15 per share (interim dividends of ¥10 per share and year-end dividends of ¥5 per share).

For details of the earnings forecasts and revised dividend forecasts, refer to the Notice Regarding Revisions to Full-Year Results and Dividend Forecasts and Summary of Results for the First Three Quarters of FY2020 separately disclosed today.

* The forecast results presented above are based on information available as of the date of this announcement and assumptions considered reasonable. Actual results may differ materially from forecasts depending on a number of factors.

2. Quarterly Consolidated Financial Statements and Primary Notes (1) Quarterly Consolidated Balance Sheets

Million yen

Item	As of March 31, 2020	As of December 31, 2020
Assets Current Assets Cash and deposits Trade notes & accounts receivable Merchandise and products Land and buildings for sale Work in progress Raw materials and supplies Others Allowance for doubtful accounts Total current assets Fixed Assets Tangible fixed assets Buildings & structures (net) Rolling stock & machinery (net) Land Construction in progress Others (net) Total tangible fixed assets Intangible fixed assets Investments & others Investment securities Net defined benefit asset Deferred tax assets Others Allowance for doubtful accounts Total investments and others Total fixed assets Total Assets	59,389 154,176 13,717 49,251 7,044 8,265 55,297 (1,195)	44,009 150,051 13,285 43,612 9,124 9,033 50,438 (1,286)
345,947	318,268
884,032 78,666 732,209 147,573 33,024	866,716 77,300 738,420 162,151 30,705
1,875,506	1,875,295
40,468 176,218 4,494 23,846 71,441 (727)	38,027 196,226 4,746 21,392 68,835 (729)
275,273	290,472
2,191,248	2,203,794
2,537,196	2,522,063

Item	As of March 31, 2020	As of December 31, 2020
Liabilities Current Liabilities Trade notes & accounts payable Short-term debt Commercial papers Current portion of corporate bonds Accrued income taxes Provision Advances received Others Total current liabilities Long-Term Liabilities Corporate bonds Long-term debt Provision Net defined benefit liability Long-term deposits from tenants and club members Deferred tax liabilities Deferred tax liabilities from revaluation Others Total long-term liabilities Special Legal Reserves Urban railways improvement reserve Total Liabilities Net Assets Shareholders' Equity Common stock Capital surplus Retained income Treasury stock Total shareholders' equity Accumulated Other Comprehensive Income Net unrealized gains (losses) on investment securities, net of taxes Net unrealized gains (losses) on hedging instruments, net of taxes Land revaluation reserve Foreign currency translation adjustment account Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-Controlling Interests Total Net Assets Total Liabilities and Net Assets	103,082 331,817 50,000 35,090 14,066 13,193 46,772 131,099	90,573 404,219 35,000 5,090 5,597 8,716 48,942 116,193
725,122	714,332
210,000 524,102 2,912 47,768 138,055 14,079 9,168 43,823	270,000 497,363 2,789 48,182 136,842 12,099 9,168 47,908
989,909	1,024,354
12,550	10,667
1,727,581	1,749,354
121,724 134,023 524,423 (37,291)	121,724 134,092 484,907 (37,151)
742,880	703,574
9,983 (41) 8,406 3,371 (7,598)	14,969 44 8,700 1,415 (6,389)
14,122	18,740
52,611	50,394
809,614	772,709
2,537,196	2,522,063

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statements of

Comprehensive Income

(Quarterly Consolidated Statements of Income)

April 1, 2019
to December 31, 2019
Operating Revenue	867,949
Cost of operating revenue
Operating expenses & cost of sales (Transportation, etc.)	633,880
SG&A expenses	167,954
Total cost of operating revenue	801,835
Operating Profit (Loss)	66,114
Non-operating profit
Interest income	229
Dividend income	914
Investment gains from equity method	5,832
Subsidies for employment adjustment	‒	*1	4,847
Others	3,702	4,372
Total non-operating profit	10,678	12,956
Non-operating expenses
Interest expenses	6,722	6,475
Others	3,631	3,130
Total non-operating expenses	10,353	9,605
Recurring Profit (Loss)	66,438	(12,594)
Extraordinary gains
Subsidies for employment adjustment	‒	*1	1,266
Gains on sale of fixed assets	706	51
Subsidies received for construction	454	447
Gain on reversal of Urban Railways Improvement Reserve	1,882	1,882
Gain on sales of investment securities	182	103
Others	581	1,041
Total extraordinary gains	3,807	4,792
Extraordinary losses
Reduction entry of land contribution for construction	366	372
Loss on retirement of fixed assets	701	400
Impairment loss	1,457	7,135
Loss on valuation of investment securities	735	40
Losses related to the spread of COVID-19	‒	*2	3,734
Others	749	2,303
Total extraordinary losses	4,010	13,987
Income (loss) before Income Taxes	66,235	(21,789)
Corporate income taxes	19,037	5,836
Net Income (loss)	47,197	(27,625)
Profit (loss) attributable to non-controlling interests	1,173	(1,101)
Profit (loss) attributable to owners of parent	46,024	(26,523)

548,990 152,810 701,801 (15,945)

Item

Million yen

April 1, 2020 to December 31, 2020

685,855

218 838 2,680

(Quarterly Consolidated Statements of Comprehensive Income)

Item	April 1, 2019 to December 31, 2019	April 1, 2020 to December 31, 2020
Net Income (loss) Other comprehensive income Net unrealized gains (losses) on investment securities Net unrealized gains (losses) on hedging instruments Revaluation reserve for land Foreign currency translation adjustment account Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of associates accounted for using equity method Total other comprehensive income Comprehensive Income Comprehensive income attributable to Comprehensive income attributable to owners of the parent Comprehensive income attributable to non-controlling interests	47,197 2,165 0 2 (1,457) 1,585 695	(27,625)
4,090
(0)
‒
(1,632)
1,114
201
2,990	3,772
50,188	(23,852)
49,318 869
(22,199)
(1,653)

(3) Notes to Quarterly Consolidated Financial Statements

(Notes Regarding the Premise of a Going Concern)

There is no applicable item.

(Notes If There Is a Considerable Change to Shareholders' Equity)

There is no applicable item.

(Matters Related to Consolidated Quarterly Statements of Income)

*1 Employment Adjustment Subsidy

The Company posted the Employment Adjustment Subsidy received in connection with the spread of COVID-19 under non-operating profit and extraordinary gains. The Company posted the Employment Adjustment Subsidy received for a loss related to COVID-19 posted under extraordinary losses as extraordinary gains.

*2 Losses related to the spread of COVID-19

Some hotels and commercial facilities of the Group were closed temporarily following the declaration of a state of emergency issued by the government and stay-at-home requests made by local authorities amid the spread of COVID-19. The Company decided that fixed expenses (personnel expenses, rents, and depreciation) incurred due to such temporary closings were contingent and therefore posted them as extraordinary losses.

(Additional Information)

(Approach to Incorporating the Effects of the COVID 19 Pandemic When Ma king Accounting Estimates)

The Company reconsidered the details of assumptions, such as when COVID-19 will end, stated in (Additional Information) Approach to Incorporating the Effects of the COVID-19 Pandemic When Making Accounting Estimates in the annual securities report for the previous fiscal year, taking into consideration a resurgence of COVID-19 infections toward the end of 2020 and the second declaration of a state of emergency in early January 2021. When COVID-19 will end remains hard to predict. The Company assumes conditions will not normalize by the end of the fiscal year ending March 31, 2021 and that they will recover in stages in the period from fiscal 2021. The Company estimates future cash flows in the impairment accounting of fixed assets, collectability of deferred tax assets and the like based on those assumptions.

(Segment Information)

I. April 1, 2019 to December 31, 2019

1. Information on operating revenue and operating profits or losses by reported segment

Million yen

Reported segment	Total	Adjustments (Note) 1	Amount posted in the consolidated statement of income (Note) 2
Transportation	Real Estate	Life Service	Hotel and Resort
Operating revenue Outside customers Inter-segment internal revenues or transfers	159,658 1,646	121,816 33,085	509,001 12,569	77,473 449	867,949 47,751	‒ (47,751)	867,949 ‒
Total	161,305	154,901	521,571	77,922	915,701	(47,751)	867,949
Segment profit	29,498	22,182	10,738	3,077	65,496	618	66,114

Notes

• 1. An adjustment of ¥618 million in segment profit represents the deduction of intersegment transactions.

• 2. Segment profit has been adjusted with operating profit recorded in the consolidated quarterly statements of income.

  II. April 1, 2020 to December 31, 2020

  1. Information on operating revenue and operating profits or losses by reported segment

Million yen

Reported segment	Total	Adjustments (Note) 1	Amount posted in the consolidated statement of income (Note) 2
Transportation	Real Estate	Life Service	Hotel and Resort
Operating revenue Outside customers Inter-segment internal revenues or transfers	109,128 2,501	118,642 27,897	428,852 11,073	29,232 193	685,855 41,666	‒ (41,666)	685,855 ‒
Total	111,629	146,539	439,925	29,426	727,521	(41,666)	685,855
Segment profit (loss)	(12,320)	22,496	(3,544)	(23,023)	(16,391)	445	(15,945)

Notes

• 1. An adjustment of ¥445 million in segment profit (loss) represents the deduction of intersegment transactions.

• 2. Segment profit (loss) has been adjusted with operating profit (loss) recorded in the consolidated quarterly statements of income.

  2. Information related to impairment loss on fixed assets, goodwill, etc. by reported segment (Important impairment loss related to fixed assets)

  The Company posted an impairment loss of ¥5,917 million in the Hotel and Resort segment and ¥1,203 million in the Life Service segment.

  Impairment loss the Company posted in the first three quarters under review was ¥7,135 million.