Tokyu Fudosan : Annual Securities Report 2023

ANNUAL REPORT 2023

Year Ended March 31, 2023

CONTENTS

Message from the President	1
Business Report	2
Outline of Business	2
Outline of the Company	42
Consolidated Financial Statements	45
Independent Auditors' Report	45
Consolidated Balance Sheet	51
Consolidated Statement of Income	53
Consolidated Statement of Comprehensive Income	54
Consolidated Statement of Changes in Equity	55
Consolidated Statement of Cash Flows	61
Notes to the Consolidated Financial Statements	63

Message from the President

For a vibrantly shining future

The fiscal year ended March 31, 2023 (FY2022) marked the first year of the medium-term management plan 2025. We strove during FY2022 to push ahead with the restructuring of our business portfolio, in line with a policy of improving our earnings power and efficiency, with an eye to achieving further growth in the post-COVID-19 environment. As a result, ROA, ROE and other indicators stipulated by the management plan improved, while operating revenue and operating profit both exceeded major milestones: ¥1 trillion and ¥100.0 billion, respectively. In short, we have made steady progress toward achieving our targets for FY2025.

Looking ahead, the Tokyu Fudosan Holdings Group will continue to promote structural reforms while maintaining financial discipline. The Group boasts many unique and diverse wings to give lift to its business and, through these reforms, we will update them into a portfolio that is a genuine powerhouse. Specifically, we will utilize DX and other solutions to connect data and know-how possessed by each business in a way that is conscious of overall optimization based on the customer perspective. In this way, we will restructure our value chain within the Group to enhance both the efficiency of business operations and the value of customer experience, with the aim of securing even higher profit and seizing a broader range of business opportunities. We will also remain focused on addressing environmental and social sustainability, which has become an integral part of our overall corporate activities. Sustainability has come to represent a clear area of the Group's strength. By doing all of these things, we will strive to further improve our corporate value and grow into a company deserving of even higher evaluation by shareholders and investors.

We ask our shareholders for their continued support of our endeavors.

	Realizing a future where anyone can be themselves and shine brightly
June 2023	Hironori Nishikawa,
	President & CEO

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BUSINESS REPORT

Years ended March 31, 2023

I. Outline of business 1. Financial Highlights

(1) Summary of consolidated statements of income

		Yen			Yen			U.S. dollars
		(millions)			(millions)			(thousands)
		2022			2023			2023
Operating revenue	¥	989,049	¥	1,005,836	$	7,562,677
Operating profit		83,817			110,410			830,150
Ordinary profit		72,834			99,558			748,556
Profit attributable to owners		35,133			48,227			362,609
of parent
Comprehensive income		48,916			72,983			548,744
Net assets		643,298			700,702			5,268,436
Total Assets	¥	2,634,343		¥	2,738,458		$	20,589,910

(2) Trend of indices

		2022			2023
Equity ratio	24.0%			25.0%
ROE*1	5.7%			7.3%
PER*2	13.8			9.4
*1 Net income/shareholder's equity	*2 Price earnings ratio (times)

(3) Others

		Yen			Yen			U.S. dollars
		2022			2023			2023
Net income per share	¥	48.84	¥	67.21	$	0.51
Net assets per share	¥	878.32	¥	964.77	$	7.25
Employees		21,276			21,614			-
Temporary employees*		9,806			8,452			-

* The number of temporary employees is the annual average number.

(4) Summary of cash flows

CF from operating activities CF from investing activities CF from financing activities Cash and cash equivalents at the end of the year

	Yen			Yen			U.S. dollars
	(millions)			(millions)			(thousands)
	2022			2023			2023
¥	76,453	¥	94,739	$	712,323
	(31,786)			(120,060)			(902,707)
	(81,273)			42,764			321,534
¥	153,865	¥	170,649	$	1,283,075

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