Integrated Report

In May 2025, we launched our “Medium-Term Management Plan 2030.” Under our previous mid-term management plan, which ran through fiscal 2024, we actively divested inefficient assets—including the transfer of Tokyu Hands and our fitness business, as well as the sale of Tokyu Plaza Ginza and low-profitability golf courses and ski resorts. At the same time, in the renewable energy business, we acquired a company engaged in the development, power generation, operation, and management of renewable energy power plants, thereby beginning to build a value chain that spans from development to retail electricity sales.
As a result of this portfolio management, which balances portfolio optimization and growth investment, we believe that our Group’s current portfolio consists of businesses with distinct competitive advantages and strong growth potential.

Under our mid-term management plan 2030, which began in fiscal 2025, we will further leverage synergies between businesses and enhance the competitive advantages of each business. Specifically, in response to changing and growing social needs, we have identified three key themes—“Advancement of the Greater Shibuya Area Strategy,” “Building a GX Business Model,” and “Expansion of Glocal Business^*” —where attractive market growth is expected and where we can leverage our Group's strengths. We will pursue these initiatives to build a robust and distinctive business portfolio, achieving high growth rates and greater resilience to market volatility.

* Glocal business: A business that pursues co-creation with local communities and creates impact (maximizing local value) while identifying tectonic shifts in business environments occurring across the globe.

To further enhance our market valuation, we consider the consistent achievement of an ROE exceeding the cost of equity to be a fundamental prerequisite and a key management objective. Under this plan, we have set a target ROE of 10% or higher for fiscal year 2030 and will continue to achieve ROE levels that consistently exceed our cost of equity.

Regarding shareholder returns, under this plan, we have raised the dividend payout ratio to 35% or higher by fiscal year 2027 and introduced a progressive dividend policy. We will continue to prioritize the allocation of funds toward growth investments and drive sustainable profit growth. Furthermore, we will pursue dividend growth in line with EPS growth to strengthen returns to our shareholders.