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Management Plans & Strategy

We drafted and released a road map “FY2019-FY2021 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
  • 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. Basic policies and theme of Medium-term Management Plan

Positioning of Medium-term Management Plan

As with the previous plan (FY2018-2020), the current plan (FY2019-2021) is based on the FY2017-FY2019 Medium-term Management Plan.
The plan cements our initiatives from FY2017 onward and leads on to a new management phase and management plan.

→Harvest the fruit from investments to date and prepare for business expansion by strengthening our financial status and accelerating our expansion into new business areas and fields

Main points of FY2019-2021 Medium-term Management Plan

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

Theme

“Sustainability & Dynamism”
Toward sustainable, dynamic growth

Basic policies

  • 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. We have added "Continuously strengthen management foundation" to the five measures in the previous plan (FY2018-2020) and will promote initiatives over the next three years based on the following six key measures.

  • ① Strengthen marketing capabilities
  • ② Effective use of the Group's assets
  • ③ Strengthen collaboration inside and outside the Group
  • ④ Disciplined and efficient capital expenditure
  • ⑤ Create an organization and corporate culture that brings about innovation
  • ⑥ Continuously strengthen management foundation

Quantitative targets for the final year of the Medium-term Management Plan (FY2021)

Management Index FY2018 Actual
(Fiscal yearended March 2019)
FY2021 Plan
(Fiscal year ending March 2022)
Operating revenue ¥ 565.9 billion ¥ 614.8 billion
Operating profit ¥ 73.3 billion ¥ 75.7 billion
EBITDA (Operating profit before depreciation) ¥ 127.3 billion ¥ 137.5 billion
 EBITDA margin 22.5% 22.4%
Net interest-bearing debt ¥ 878.5 billion ¥ 856.5 billion
 Net interest-bearing debt / EBITDA ratio 6.9 times 6.2 times
ROE 11.3% 9.7%
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