Promotion of Tobu Group Medium-Term Business Plan - TOBU RAILWAY CO., LTD. November 15, 2019
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Promotion of Tobu Group Medium-Term Business Plan November 15, 2019 TOBU RAILWAY CO., LTD.
Promotion of Tobu Group
Medium-Term Business Plan
Status of Progress on Medium-Term Business Plan
1. Progress on Medium-Term Business Plan
(1) Unification of Asakusa/Tokyo Skytree Town area ・・・・・・・・・ P3 - 6
and preparations for making Tokyo 2020 a success
(2) Becoming a railway line to which people want to move and stay ・・ P7 - 9
(3) Hotel business ・・・・・・・・ ・・・・・・・・・・・・・・・・・・ P10
(4) Inbound ・・・・・・・ ・・・・・ ・・・・・・・・・・・・・・・・ P11
(5) New initiatives for further expansion of profits ・・・・・・・・・・・ P12
(6) Creation of new tourist attractions
・・・・・・・・・・・・・・ P13
in collaboration with local communities
2. Three Pillars of Management Strategy ・・・・・・・・・・・・・・ P14 - 16
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
1
Promotion of Tobu Group
Medium-Term Business Plan
Progress on Medium-Term Business Plan
Period covered by Medium-Term Business Plan
Plan FY2017 FY2018 FY2019 FY2020 FY2021 and later
Maximization of revenue through
focused investment in key areas
Development of Kitajukken River
waterfront space ●Opening of facility
Asakusa/Tokyo (under elevated railway)
Skytree area Sumida River ●Completion
pedestrian bridge
Construction of ●2018.2
●Opening of hotel
Nikko/Kinugawa THE RITZ-CARLTON NIKKO Construction commenced
area ●2017.8 ●2018.11 ●Restoration
SL operations Launch of second SL restoration complete
SL launch of operations
Promotion of redevelopment project
Ikebukuro area for west exit of Ikebukuro Station Discussion/coordination with area stakeholders/government officials for promotion of redevelopment Urban planning decision
Ginza/Yaesu/Coastal Construction of AC Hotels ●2018.3 ●Opening of hotel
area by Marriott Tokyo Ginza Construction commenced
Introduction of seating service
through further cultivation of businesses along
Launch of operations
for Hibiya Line through trains
Improvement of
Improvement of value along railway lines
Expansion of express operation Completion of double-track line between
transportation ● Mutsumi and Sakasai, expansion of
sections on URBAN PARK Line
express operation sections
services Introduction of new limited Launch of
express for sightseeing operations
Construction of Wakoshi ●Construction ●Opening of ●Opening of
railway lines
Facility development south exit station building commenced station building hotel
centered on stations Opening of Shinkoshigaya
●Soka VARIE 2
Opening of ● Opening of
Station store/building plan ● Kitasenju ● VARIE Renovation ● Tokiwadai Station Kitasenju South
center zone of 4F/5F renovation North Exit stores Exit stores
●Completion of ● Completion of ●Completion of Solaie
Shimizu-koen Completion of Completion of
Condominium/ ● detached houses Solaie Katsushika ● Solaie Soka
●Completion of Solaie ● Solaie City The
Provision of detached houses Solaie Narimasu Kosuge Matsubara City Nagareyama Otaka no Mori Park/The Garden
Gran Nagareyama
(2017-2020) Terrace Otaka no Mori
luxurious ●Opening of Soka-city Takasago rental condominium
Rental condominium ● Opening of Solaie I’ll ●
Opening of Solaie I’ll
lifestyle services Shimoakatsuka Nerima Kitamachi ●Opening of Shingashi Ekimae housing complex
●Opening of Kitasenju ●Opening of Hikifune ●Opening of Shin-Funabashi Opening of Shin-Funabashi ●Opening of Iwatsuki
Child-raising/senior care childcare facility ● childcare facility rental housing for
Establishment of childcare facility childcare facility ●Opening of Minami-Sakurai senior citizens
childcare facility
lifestyle services Group point Launch of new Group point
●Opening of
Expansion of Multifaceted development
Asakusa/Kawagoe
of hotels ●Sapporo rebranding
the hotel business
● Establishment of
Inbound initiatives Inbound Asia Sales Branch
Further promotion of Group inbound activities
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2
Promotion of Tobu Group
Medium-Term Business Plan
Creating No. 1 tourist destination in Tokyo by unifying Asakusa/Tokyo Skytree Town area
Sumida Park/
Waterfront development Tokyo mizumachi
Roadside commercial facility
consisting of unique stores and a
hostel, taking advantage of 12 stores (goods, food and
waterfront and park environment drink, etc.) and hotel
Commissioning entity: Sumida City, Tokyo
Creation of liveliness through operation
by private businesses (planned for
FY2021)
General stores with casual atmospheres
Stores facing Sumida Park New spot centered on sports
Sumida Park
Tokyo Skytree®/Asakusa pedestrian
connecting bridge
Sumida River Walk Community hostel creating liveliness
(Tentative name) Wise Owl Hostels
Strong promotion of area town
development (such as area
management)
Sports
Newstudio/café
town where bridge, under elevated railway, park, and waterfront area are integrated
Shortest connection between Asakusa
and Tokyo Skytree Town
Spring 2020 Opening
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3
Promotion of Tobu Group
Medium-Term Business Plan
Tokyo Skytree contributes to excitement of Tokyo 2020
Promotions to ensure success
■Continued PR for Tokyo 2020
■Related events at Tokyo Skytree Town, including events
to mark two years until Olympics
■Invitations to overseas media to come and cover
TEMBO DECK
PR for Tokyo 2020 (laser mapping/special lighting)
Strengthening of inbound sales capabilities
Tokyo Skytree Number of inbound visitors (estimates)
■Strengthening of online sales through overseas OTAs (1,000 people)
1,600
■Strengthening of communications and advertising 1,400
targeting China and other countries 1,200
■Expansion of sales locations at airports and other travel 1,000
800
hubs
600
Aim for dramatic increase in inbound
Further 400
visitors on occasion of Tokyo 2020
1 facility 14 facilities expansion 200
(End of FY2018) (2019.10)
in future 0
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Aiming for 4.5 million visitors to Tokyo Skytree
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4
Promotion of Tobu Group
Medium-Term Business Plan
Our initiatives during Tokyo 2020 (effective utilization of land in Ariake)
Volleyball Ariake Coliseum
BMX/
Skateboarding Gymnastics
Ariake-Tennis-no-mori Station
Ariake
Planned site of
Tobu Ariake Field Tobu Ariake Field
Tennis
10 events to be Connecting Increase convenience of spectators
held nearby at Tobu Ariake Field
both areas
Narita Airport
To tourist spots along
Asakusa/Tokyo Skytree Town area
Direct
railway lines and areas
Directions all over Japan
Haneda Airport Tokyo Skytree
Town Asakusa
Making working-class culture and Tokyo Skytree a symbol of Tokyo and Japan
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5
Promotion of Tobu Group
Medium-Term Business Plan
Preparing an environment for taking in visitors for Tokyo 2020
• Renovations at four stations
nearest to venues
Improved • Promotion of multilingual support
convenience (Ticket machine guidance in 8 languages,
English conversation classes, etc.)
• Promotion of smooth business, etc.
Renovation at Kitakoshigaya Station
• Installing platform doors at
stations nearest to venues
Safety
• Counter-terrorism training
measures
• Installation of surveillance
cameras in train cars, etc.
Asaka Station platform door
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
6
Promotion of Tobu Group
Medium-Term Business Plan
Becoming a railway line to which people want to move and stay
Aiming to become the most used railway in the area
Express operations
launched TOBU URBAN PARK Line
(March 2016) March 2020 Timetable revision (March 2020)
Iwatsuki Launch of
Omiya Kasukabe express ■Increased speed
operations Morning rush hours Kashiwa Funabashi
31 min 22 min (9-minute reduction)
Kitasenju/Asakusa
(TOBU SKYTREE Line)
Unga Nagareyama
Otaka no Mori Evening rush hours Kashiwa Funabashi
30 min 19 min (11-minute reduction)
Kashiwa
Daytime Omiya Funabashi
92 min 76 min (16-minute reduction)
Takayanagi
Shinkamagaya
■Pursuit of comfort
New limited express Urban Park Liner from
Kashiwa to Shimizu-koen / Kasukabe
Tokyo (JR) Funabashi
■Improved convenience
Last train at each junction station
*New express stops in red postponed up to 30 minutes
Aiming to increase TOBU URBAN PARK Line revenues by approx. 1 billion yen
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7
Promotion of Tobu Group
Medium-Term Business Plan
Becoming a railway line to which people want to move and stay
Development of quality living
Expansion of EQUiA stores into more stations environment
EQUiA PREMIE Wako Condominiums
New EQUiA brand ・Solaie Soka Matsubara City Terrace
Station building with commercial facilities and hotel
・Solaie City The Park/The Garden
・Solaie Nagareyama Otaka no Mori
・Solaie Gran Nagareyama Otaka no Mori, etc.
Five in-station stores to open on December 12, 2019 Aiming for a commercial facility suited
Including food stores for daily use to those who want to take comfort to
the next level in their daily living while
March 2020: Station building grand opening emphasizing natural, personal
Solaie City The Park/The Garden
expression (Dokkyodaigakumae [Soka Matsubara] Station)
Detached houses
EQUiA Tokiwadai ・Solaie Shimizu-koen Urban Park Town
November 29, 2019 Grand opening
Bringing total number of
Solaie Hiroshima
EQUiA locations to 13 マルシェ 写真
Continue to develop as appealing in-station facility for
further expansion of profits Urban development for vibrant local communities
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8
Promotion of Tobu Group
Medium-Term Business Plan
Becoming a railway line to which people want to move and stay
Enrichment of child-raising support and lifestyle services
Child-raising support Work style reform support Creation of working environments
business business comfortable for women, too
■ Establishment of nursery schools near ■ Development of satellite offices ■ Company housing with childcare
stations along railway lines facilities
Opening in Shin-Funabashi (Spring 2020) Registered “kanowa Tobu-dobutsu-koen”
Registrants
Bringing total companies
Accumulate know-how
to 15 locations and develop company
September 2018 117 3,834
■ Solaie I’ll Nerimakitamachi housing business
Obtain our first certified design under Tokyo September 2019 233 6,448
child-care housing certification system
(To be completed in January 2020)
■ Work spaces inside station
Considering introducing private ■ Company-led childcare facility
offices for businesspeople to use their “Solaie Kids Tobu-dobutsu-koen”
time effectively
Support for unique
Effective shift pattern of railway
utilization of business
empty space at Childcare on
weekends, holidays,
■Solaie Gran Nagareyama Otaka no Mori station
and overnight
Condominium with on-premises
childcare/After-school facility to be invited Opened in
and after school care center (to be September 2019
completed in September 2021)
Connecting generations and creating the happiest living environment in Japan
through stronger collaboration with municipalities
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
9Promotion of Tobu Group
Medium-Term Business Plan
Maximization of hotel business revenue by capturing robust demand
Promotion of accommodation-type hotel development
Hotels under construction No. of
Net sales Operating income
guest rooms
AC Hotels by Marriott Tokyo Ginza 296
Asakusa Tobu Hotel 253
¥5.5 billion ¥0.55 billion THE RITZ-CARLTON NIKKO
Wako City Tobu Hotel 158
May 22, 2020 Opening
Kawagoe Tobu Hotel 168 Outside of Kawagoe Tobu Hotel
Aim for operating margin of 10% or higher
Improving product value Main hotels
at existing hotels 1H FY2019 Results
Fairfield by Marriott Sapporo ADR Occupancy rate
opening after rebranding
Ginza ¥24,100 (+4.0%) 94.0% (-0.5%)
(planned for 2020 spring
opening) Kinshicho ¥16,200 (+5.7%) 86.9% (-1.1%)
Work to capture rapidly increasing Narita ¥9,900 (+2.0%) 87.6% (+4.2%)
inbound demand within Sapporo Asakusa Tobu Hotel
*YoY comparison in parenthesis Guest room
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
10Promotion of Tobu Group
Medium-Term Business Plan
Inbound initiatives
Promotion of efforts to attract inbound
Trend in inbound revenue
customers
■ Further increase in revenue with effective sales
promotions Tobu Group inbound operating revenue
• Tobu Group Alipay campaign 1H FY2019 Results
Tobu Department ¥7.6 billion + 21.7% (YoY)
Store Ikebukuro
transaction amount +55.4%
(YoY) Trend in Inbound Revenue Target
■Initiatives for Tokyo 2020 (Billions of yen) ¥14.0 billion
• Ramp up promotions for markets where interest in Tokyo 14 ¥13.1 billion
2020 is high (United States and China)
12
■Ongoing ad placements ■Inviting overseas media ¥10.5 billion
10
¥ 8.0 billion ¥ 7.6 billion
8
6
4
2
0
Placement in overseas travel magazines Media tour coinciding with Rugby World Cup 2016 2017 2018 1H 2019 2020
Implementing effective promotions for sustainable growth
while taking the latest situation overseas into account
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11Promotion of Tobu Group
Medium-Term Business Plan
New initiatives to further expand profits
Enhancement of profitability through Labor savings through utilization of new
modal shift to railway technologies
■New station between Tobu-Takezawa and ■Cooperation with TOBU BUS auto driving
Obusuma experiments
Promotion of railway use on commute to Auto driving (level 2) experiment on public roads between
Honda plant Kashiwanoha Campus Station West Exit and University of
Tokyo Kashiwa Campus
Autumn 2020
[Overview]
opening (planned)
• Company: TOBU BUS EAST CO., LTD
Will also contribute to • Start date: November 1, 2019
easing traffic congestion
• Driving distance: Approx. 2.6km
Construction to start Illustration of new • Description: Automatic control via installation of
within year station GPS and magnetic markers on road
■Cooperation with Utsunomiya City MaaS
Anticipation of level 4 auto driving in future
social experiment
Implemented as first step for improving public
transportation share in Utsunomiya area
Provide free passes for Tobu Utsunomiya Line
(between Nishi-Kawada and Tobu-Utsunomiya)
Verify changes in transportation behavior
by participants and utilize for future
expansion of use Experimental vehicle Operating route
Map data ©2019 Google
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12Promotion of Tobu Group
Medium-Term Business Plan
Creation of new tourist content in cooperation with community
Creation of infrastructure tourism
through public-private collaboration Creation of new tourist attractions
TOBU TOP TOURS CO., LTD. ■Ranzan Town Lavender Field (Sennen no Sono)
Launch of Metropolitan Area Outer Underground • TOBU TOP TOURS received contract
Discharge Channel tours from Ranzan Town for attracting
Create non-resident population in Kasukabe area customers
Concluded collaboration agreement
• Drew customers to 8ha lavender field
with Council for Utilization of (June 8-July 7, 2019)
Metropolitan Area Outer
Underground Discharge Channel Number of users of
Approx.
Musashi-Ranzan Station
(Year-on-year comparison)
+20.8% Visitors
75,000
Total number of visitors
(August 2018-September 2019)
*Not carried out in January and ■Straw art at Tobu-Dobutsu-Koen Station
February 2019
West Exit
• Collaboration with
66,054 Miyashiro Town
(+238.5% compared to
FY2017)
Agricultural town
of Miyashiro
Received 11th Japan Tourism Agency Also famous as
Commissioner’s Award cosplay mecca
Received 5th Japan Tourism Award Dragon straw art exhibit
Aiming to become a railway line that creates new flows of people for regional
revitalization and prosperity
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13Promotion of Tobu Group
Medium-Term Business Plan
Promotion of growth investment
(Billion of yen)
250
2500 Total investment:
Acquisition of shares
Approx. ¥202 billion
(including shares)
Strategic investments for
growth
200
2000 Investments in maintenance
and updates
TOBU TOWER SKYTREE
TOBU STORE Share acquisition Share acquisition
150
1500
100
1000
THE RITZ-CARLTON NIKKO Construction of Wakoshi
construction South Exit station building
Total investment:
50
500 Approx. ¥177 billion
(including shares)
00
To To 1H Introduction of seating service on Expansion of express operation
FY2018 FY2019 through trains to and from Hibiya Line sections on URBAN PARK Line
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14Promotion of Tobu Group
Medium-Term Business Plan
Maintenance of financial strength
Shareholders equity ratio
[Medium-Term Business Plan 2017-2020]
Interest-bearing debt balance
Interest-bearing
Interest-bearing debt balance (forecast)
debt/EBITDA multiple of
Interest-bearing debt balance around 6.5x-7x
(Billion yen)
8,500 (Medium-Term Business Plan)
850
28.1% 29.0%
27.6%
26.4%
800
8,000 24.6%
23.5%
¥830.0 ¥823.5 ¥799.7 ¥790.3 ¥793.1 ¥780.6 ¥799.7 ¥819.9
billion billion billion billion billion billion billion billion
750
7,500
FY2014 FY2015 FY2016 FY2017 FY2018 2Q FY2019 FY2020
FY2019 forecast Medium-Term
Business Plan
(revision)
Interest-bearing
debt/EBITDA 7.9x 7.0x 6.6x 6.6x 6.6x － 6.5x 6.5x
multiple
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15Promotion of Tobu Group
Medium-Term Business Plan
Further enhancement of shareholder return
Treasury shares acquired Number of shares: 4 million ¥10 billion (upper limit)
Acquisition period: November 1, 2019 – February 28, 2020
[Medium-Term Business Plan 2017-2020]
18,000
16,000
Amount of treasury
shares acquired
14,000
Establish a total return ratio
Total annual dividend of around 30% for the period
12,000
¥10 ¥10
billion billion average of the Medium-Term
Dividend per share
10,000
Business Plan while keeping a
8,000
basic policy of providing
¥40.0 steady dividends
6,000
¥32.5
¥30.0 ¥30.0 ¥35.0 ¥35.0
4,000
2,000
¥6.4 ¥6.4 ¥7.0 ¥7.4 ¥7.4 ¥8.5
billion billion billion billion billion billion
0
FY2014
2014年度 FY2015
2015年度 FY2016
2016年度 FY2017
2017年度 FY2018
2018年度 FY2019
2019年度予想
forecast
*1 Dividend per share reflects the impact of the reverse stock split (5 for 1 basis, ordinary shares) implemented on October 1, 2017
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16Important Notes Concerning This Document
The Company’s profit plans and other goals set forth in this document are
based on projections of industry trends related to the business of the
Company and Group companies and other such factors that impact business
results, including the economy in Japan and other countries, which are made
based on the information currently available to the Company.
As such, the reader is asked to note that actual business results may differ
from the forecasts within this document due to changes in the business
environment and other such factors.
Facility names in this document are registered trademarks of TOBU RAILWAY CO., LTD. and TOBU TOWER SKYTREE Co., Ltd.
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
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