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Here is the state of progress made in the medium- and long-term management plan.
At the moment, we are right at the turning point, with a year and a half having gone by of the first three years of the seven-year medium- and long-term management plan Value Frontier 2020.
We assess that the plan is progressing, broadly tracking its planned path, although each business has its strengths and weaknesses.
The plan aims for us to be a corporate group that continues to create value through two basic policies of the plan, which is the expansion of associated assets and the creation of new demand.
First, regarding the expansion of associated assets, current performance of each business, primarily in the core businesses of urban development/residential/property management/real-estate agent, is progressing at a healthy pace.
On the other hand, what differs from the time the medium- and long-term management plan was formulated is the investment environment.
As I noted earlier, we are investment through careful selection because the sense of overheating is getting stronger.
Amid such circumstances, for example, we were able to seize a new investment opportunity in the form of the infrastructure market, such as when we secured concession stands at Sendai Airport as a consortium. As for going forward, we would like to capture a wide range of various investment opportunities.
Next is about the creation of new demand.
The policy is to create new demand through the evolution of business models in the areas of wellness, Tokyu Hands and overseas operations and other, which are anticipated to be areas of business growth based on the themes of the expanding senior-related market, the market in which stock can be utilized and the inbound market, among others, and to cultivate them to become the pillars of profitability going forward.
We believe that the key is whether we would be able to attach added value by offering customized products/services in response to diversifying customer needs, without limiting ourselves to being a real estate business that solely offers traditional infrastructure-related services.
We will unearth our own growth opportunities and our own business development by organically connecting our wide-ranging businesses, which are also our Group's characteristic.
I would like to introduce to you an actual case. The Setagaya Nakamachi Project, a complex development consisting of condominium units and senior housing Grancreer, is a project that was advanced from a traditional business model of the residential business through synergy with the wellness business.
The project is to offer a one-stop approach to lifestyle services for seniors, Homecreer, by setting up a living environment that enables the exchange of multiple generations from those in their child-rearing days to those of the elderly population, and we are proud that it takes a form of a new type of town development that is unique to the Company.
Also, inbound is extremely strong.
It has staged growth above the level anticipated in the medium- and long-term management plan, and the wellness segment, which include the hotel business such as Tokyu Stay, and the Tokyu Hands segment, among others, are expected to achieve the operating income target value in the medium- and long-term managed plan one year ahead of schedule. Incidentally, Tokyu Stay will open its 17th hotel in Ginza next spring, and we have great expectations for it.
Regarding the overseas business, we were able to gain a foothold in laying the groundwork in business development in the United States, which includes the decision to jointly participate in a large-scale office development in Manhattan, New York. We will push forward at a steady pace.
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