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Operating revenue was ¥815.5 billion and operating income was ¥68.8 billion for the fiscal year ended March 2016. Revenue and income increased both year on year and over the forecasts thanks to the strong market.
The new fiscal year is the final fiscal year of the current Medium-Term Management Plan. The Company plans to achieve growth in revenue and income in a bid to successfully reach its operating income target of ¥73 billion.
Without question, the biggest event in the last fiscal year was the inauguration of Tokyu Plaza Ginza. We are confident that we have established new commercial facilities with both a presence befitting the atmosphere in Ginza and originality that is unconventional in the area. Sales at Tokyu Plaza Ginza since its opening have exceeded our forecast, so we encourage you to visit it on this occasion if you have not yet been there.
Dogenzaka 1-Chome Project which is the large scale project following the Tokyu Plaza Ginza has also started the construction.
Next, we will review our current business situation.
I believe that there have been considerable changes between the time when we created the medium-term plan and now.
Let me start with the environment for real estate investment.
While the policy-led low interest rates remain in place, the real estate investment market has heated up more than expected, and it is easy to sell and hard to buy.
The next thing to look at is uncertainty about the future of the macro economy. Since the second half of last year, consumer spending in particular has been sluggish, and we need to monitor this situation as we operate a number of B2C businesses.
In contrast, a positive factor is the growth in demand for inbound tourism, which has been larger than we had expected. The government’s target for foreign visitors to Japan has doubled from 20 million to 40 million by 2020. Our business hotels, Tokyu Stay, are doing quite well. We would like to accelerate our business expansion to take advantage of the growing inbound tourism market.
Taking the changes in the business conditions mentioned earlier and the perception of the current environment fully into account, we will draw up a medium-term management plan for the next term in the current fiscal year.
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