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I would like to explain the effects of the spread of the coronavirus on the business and results in each segment in the fiscal year ending March 2021.
We assume effects mainly in the BtoC business.
We created this table, assuming that the Group’s business activities will be constrained significantly in the first quarter and will recover gradually from the second quarter.
In the Urban Development segment, Tokyu Plaza and other major commercial facilities are closed, and the operation of rental meeting rooms is suspended.
At commercial facilities, a decrease in percentage rent, which is based on sales at tenants, and full or partial exemption from fixed rent during the closure are expected. Revenue from rental meeting rooms is also expected to fall.
In the Residential segment, the business period will be reduced as a result of the suspension of operation of condominium showrooms. The number of units posted in fiscal 2020 is expected to be smaller than the initial plan.
In the Property Management segment, revenue from construction work and property management is expected to fall, reflecting the scaling down of new construction work and the suspension of part of property management to prevent the spread of the coronavirus.
In the Real Estate Agents segment, revenue mainly from sales agency operations is expected to decline, reflecting a decrease in opportunities to gain new customers due to the scaling down of operations at offices of real estate agents.
In the Wellness segment, operating revenue is forecast to fall due to the closure of facilities, including those of Tokyu Sports Oasis, Tokyu Stay, and Harvest Club, or the scaling down of business at those facilities.
In the Tokyu Hands segment, revenue is projected to drop, reflecting the closure of stores or the scaling down of business at stores.
In the Innovation Business segment, the business period will be reduced as a result of the suspension of operation of condominium showrooms in Indonesia, and the number of units posted in fiscal 2020 is expected to be smaller than initially planned.
It is difficult to reasonably estimate the effects of the spread of the coronavirus and to forecast results in the fiscal year ending March 2021.
Actual results may change chiefly depending on when the spread of the coronavirus subsides. If the need for a revision to the earnings forecast arises, we will announce a revision promptly.
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