Management Plans & Strategy

We drafted and released a road map “FY2018-FY2020 Seibu Group's Medium-term Management Plan”.
In the plan, we will expand existing business fields and create new business areas to realize “sustainable and dynamic grouth”.

  • Schematic diagram of the Seibu Group's strategy, with definitions
  • Long-term strategy
  • Next long-term target level
  • Basic policies and theme of Medium-Term Management Plan

1. Schematic diagram of the Seibu Group's strategy, with definitions

[ Group Vision ]
Our management policies and philosophy. Our guidelines for employee behavior.
[ Long-Term Strategy ]
Basic concept for realizing our Vision. Our strategy and direction for the next ten years.
[ Medium-term Management Plan ]
3-year Management Plan based on our Long-Term Strategy, addressing to the market environment and other changes.

2. Long-Term Strategy

Basic Policies

1. We will make the best use of our management resources (people, assets, funds) to maximize the Seibu Group's corporate value.

(1) People: Personnel Strategy
We will hire able personnel and leverage their skills with training to maximize the value of our human resources. We will place people where they fit best in the Group to make them more effective and strategically valuable. This will improve employee motivation, allowing us to strengthen our foundation of committed employees.
(2) Assets: Asset Strategy
We will focus our assets on three tasks: enhancement of the value of existing aseets, portfolio re-building, and concentration on management resources on core businesses. In these ways, we will aim to maximize our corporate value from each viewpoint.
(3) Funds: Financial Strategy
The pillars of our financial strategy are investment management, fund procurement management, and investor relations (IR) activities. Choosing the ideal balance of rewards for stakeholders (customers, shareholders, lenders, employees, and others) and investment in growth will allow us to improve the Seibu Group's earning power and maintain a sound financial standing.

2. Each business will aim to be the top in its field and support its customers' lives.

By combining diverse services from the entire Seibu Group, we will enrich the range of services we can offer.

Basic Policies of the Three Core Businesses
(1) Urban Transportation and Regional Business (Role: The sources of improvememt of corporate value)
Seibu Railway makes it happen
To be a desired railway line, clarify the image of areas along the line
To encourage the inflow of people to areas served by Seibu Railway, establish an easy way to buy/sell houses
To encourage the inflow of people, develop neighborhoods with different characteristics
To encourage railway use, give people a reason to use the railway for sightseeing
Continue to pursue safety
(2) Hotel and Leisure Business (Role: The motive power to drive corporate value even higher)
Establish a position as the industry's number-one* hotel and leisure group.
*Number one in sales, profitability, customer gratification and global development capabilities
Secure an unrivaled share of the MICE* market
*"MICE" takes its four letters from "meetings" (largely held by companies), “incentive travel” (which covers travel as a reward and for training), “conventions” (usually held by international bodies, associations, and academic groups), and "exhibitions and events" (which cover exhibitions, trade fairs, and others). MICE business tends to attract large numbers of people and generate a great deal of interaction.
Provide travel that fulfills the psychological needs
Disseminate Japanese hospitality around the world
(3) Real Estate Business (Role: The key to improving corporate value)
Realize potential profitability by making effective use of the Group's assets
Based on our asset strategy, expand earning opportunities, exchange old assets for new ones, and make effective use of under-utilized or unutilized land
Make effective use of real estate in core areas to realize potential profitability
Anticipate qualitative and quantitative changes in populations living along our railway lines and develop businesses that raise value along those lines
Strengthen portfolio management

3. Positioning of Medium-term Management Plan

The new Medium-term Management Plan (FY2018-FY2020) is synchronized to the management phase laid out in the period of the previous Medium-term Management Plan. The strategies and policies are therefore unchanged, while the individual measures and numerical plans have been reviewed and formulated, based on the previous plan.

4. Basic policies and theme of Medium-term Management Plan

- A three-year plan serving as a road map to the “Challenge Target” -


“Sustainability & Dynamism”
Toward sustainable, dynamic growth

Basic policies

    ransportation and Regional Busin
  • Pursue innovations, from a new viewpoint and with speed
  • Establish a growth platform from a long-term perspective

key issues

To realize sustainable, dynamic growth, we need to focus on addressing the key issues of “create new business areas” and “expand existing business fields” based on our basic policies.

Expand existing business fields

Approaches to the key issues

① Strengthen marketing
Paradigm shift
Responding to market diversity; aging population, decreasing birthrates, increasing inbounds, etc.
Enrich service products, create tourism routes.
Responding to accommodation demand. (Develop Prince Smart Inn)
Develop Seibu CCRC / PRINCE VACATION CLUB for active seniors and high-net-worth individuals.
Providing safe, fun, experiences.
Providing nurseries to support young mother.
Precise grasp of customer demand
Effective use and analysis of customer database and big data using ICT.
Reputation management, such as improving customer satisfaction.
Expand membership bases and develop loyal customers for Seibu Prince Club, etc.
Facilities and equipment that can be used safely. (installation of platform doors on railways, etc.)
② Effective use of the Group's assets
Promoting effective asset strategy
Value-up of business
  • Promote hotel renovation
  • (Provisional) Seibu Railway Ikebukuro Building.
  • Phase Ⅱ of Grand Emio Tokorozawa, and Tokorozawa West Development plan.
Re-balance portfolio
  • Takanawa and Shinagawa area.
  • Shibakoen area, etc.
Concentrating resources to core business
  • Diversion of Resort assets.
  • Toshimaen area.
③ Collaboration inside and outside the Group
Expanding business alliances
Collaborating strengths and knowhow with companies outside the Seibu Group.
  • Launch accelerator program.
  • Coordinate operations with major companies.
Compensate deficient areas through external collaboration (new technologies such as AI and automated driving, human resources, etc.)
  • Realize low-cost operations with ICT and AI at facilities such as Prince Smart Inn, etc.
Share knowhow which made by StayWell Hospitality Group Pty Ltd and enhance overseas expansion.
Introduce next-generation hotel system to improve customer convenience and operational efficiency.
④ Rigorous and efficient capital expenditure
Investments to increase value above the hurdle rate
Apply a hurdle rate to rigorously select investments with an awareness of WACC in order to create value.
Rigorously ensure PDCA verification of investments.
⑤ Create an organization and corporate culture conducive to generating innovation
Operational reforms, new working style
Capital expenditure for improving employee satisfaction (relocate head offices of some companies, rebuild dormitories and offices).
Introduce shared Group-wide accounting system.
Implement flextime, teleworking.
Enhance decision-making and respond to risks
Working styles and platform to enable participation of diverse human resources

(1) Urban Transportation and Regional Business

Steady growth of commuter and non-commuter revenue

Theme of Medium-term Management Plan

  • Ensure safety to provide comfort
  • Strengthen in & out cooperation to improve profitability
  • Challenging the best customer satisfaction
  • Drastic approach to business efficiency

Major projects during the Medium-term Management Plan

  • Operation of extra-fare reserved seating trains. (S-TRAIN, Haijima Liner)
  • Launch new Limited Express service.
  • Renewal of stations (Hanno sta., Seibu-Shinjuku sta. etc.)
  • Strengthening of promotion and events in railway line corridor.
  • Redevelopments and town developments in Seibu railway line corridor.

Urban Transportation and Regional Business KPI* (Sales indicator)

*KPI (Key Performance Indicator)

(2) Hotel and Leisure Business

Dramatic growth in RevPAR by shifting market, CAPEX effect, and revenue management

Theme of Medium-term Management Plan

  • Shifting target to market responding to changes
  • Reinforcing continuous initiatives* (*Revenue management, MICE, improving CS, etc.)
  • Challenging new business territories in order to establish long-term business foundation that is sustainable to changing and diverse demands

Major projects during the Medium-term Management Plan

  • Add value to the existing hotels and manifestation of its effects
  • Reputation management, such as improving customer satisfaction
  • Attract customers to direct channels (in-house)
  • Continuing to strengthen revenue management and shift in target market
  • Develop the limited service hotel as "Prince Smart Inn"
  • Develop the membership hotel as "PRINCE VACATION CLUB"
  • Expand the new hotels both inside and outside Japan

Hotel and Leisure Business KPI* (Sales indicator)

*KPI (Key Performance Indicator)

(3) Real estate Business

Steady development plan to increase leasing space and portfolio stabilization

Theme of Medium-term Management Plan

  • Creating and expanding earning opportunities with big scale redevelopment
  • Improving profitability of existing retail facilities along the Seibu railway corridor
  • Aggressive approaches to new and growing business territories

Major projects during the Medium-term Management Plan

  • (Provisional) Seibu Railway Ikebukuro Building
  • (Provisional) Higashi-Nagasaki Station South Plan
  • Phase II of Grand Emio Tokorozawa
  • Examine the large scale project (Takanawa and Shinagawa area, Shibakoen area) etc.

Real estate Business KPI* (Sales indicator)

*KPI (Key Performance Indicator)

(4) Construction Business

  • Further improvement in profit ratio through selection orders and cost control
  • Improve productivity by using i-Construction and ICT technology

(5) Hawaii Business

  • Value-up investment including large-scale renovation of existing hotels
  • New development of home owner business

(6) Other

  • Strengthening the incorporation of the inbound of the Izu Hakone and Ohmi business and making effective use of owned real estate
  • Enhance team power of Seibu Lions, increase attractiveness of MetLife Dome (renewal and ball park conversion plan) and strengthen attracting its events

Consolidated quantitative plans

Management Benchmarks FY2017 Result
(Fiscal yearended March 2018)
FY2020 Plan
(Fiscal year ending March 2021)
Operating revenue (Net sales) ¥ 530.6 billion ¥ 592.7 billion
Operating profit ¥ 64.2 billion ¥ 72.3 billion
EBITDA (Operating profit before depreciation) ¥ 115.5 billion ¥ 131.1 billion
 EBITDA margin 21.8% 22.1%
Net interest-bearing debt ¥ 875.1 billion ¥ 924.4 billion
Net interest-bearing debt / EBITDA multiple 7.6 times 7.1 times

Financial strategy and shareholder return policy

We aim for further improvement of shareholder returns in consideration of the balance between capital expenditure and financial structure.

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