Promoting Diversity
SEIBU 
Thank you for your continued support and patronage to the Seibu Group.
The Seibu Group operates businesses that support customers in every aspect of their lives, including the Real Estate business, which operates retail facilities and rental offices along Seibu Railway lines and other areas, and is engaged in the capital recycling business; the Hotel & Leisure business, which operates one of the largest hotel chains in Japan under the Prince brand; and the Urban Transportation and Regional business, centered on Seibu Railway, which operates 12 railway lines in the northwest part of Tokyo and the southwest area of Saitama Prefecture. In addition, Seibu Group owns abundant real estate of more than 136 million m2 nationwide, including 460,000m2 in the 23 wards of Tokyo, and we are continuously engaging in projects that realize the earnings potential of our assets, such as Tokyo Garden Terrace Kioicho, which opened in July 2016, DIAGATE Ikebukuro, which opened in April 2019, and the development around Tokorozawa Station.
After listing on the First Section of the Tokyo Stock Exchange, we have achieved steady growth while expanding our revenue base through various measures. However, the socioeconomic and business environments are rapidly changing, including the outbreak of the COVID-19 pandemic, and we have entered the so-called “age of VUCA”, in which it is extremely difficult to predict the future. In this environment, we have set “Resilience & Sustainability: Creating Invaluable Space and Time, Ensuring Safety and Security” as the aspiration (the intended outcome) of the Seibu Group, in view of FY2035, which is approximately 10 years from now. We aim to be a corporate group that combines “Resilience”, or the ability to cope with any situation, and “Sustainability”, which is the ability to grow sustainably based on this resilience.
In addition, in the “Seibu Group’s Long-Term Strategy to 2035 and FY2024-FY2026 Medium-term Management Plan” disclosed on May 9, 2024, we have newly established materialities (key themes) in our strategies. In order to strengthen the Group's foundation, the Group has been focused on three themes: “providing safe and reliable services”, “developing and utilizing diverse human capital”, and “compliance and collaboration”. In addition to these themes, we have added three new themes that will contribute to growth: “decarbonization and effective use of resources”, “creating cities that people want to live in and visit”, and “creating experiences that move the senses”. In “decarbonization and effective use of resources”, the Seibu Group will proactively respond to environmental issues, particularly global warming, which is a social challenge, by utilizing our abundant real estate assets, including forests (more than 60 million m2), which is one of Seibu Group's strengths. We believe that our efforts to address these materiality issues will create the “character” of Seibu Group, which will be the reason why customers choose our Group, and this will lead to value creation. We will continue to create value that is unique to the Seibu Group, and will strive to achieve our Group vision and slogan “Smiles ahead”, which was created when Seibu Holdings was established in 2006.
Amidst the various social challenges that lie ahead, the “Seibu Group’s Long-Term Strategy to 2035” calls for overcoming these changes by enhancing the value of the areas along our railway lines and our business areas (urban and resort), through “urban development” utilizing the high-quality land and assets along the railway lines, as we believe this is the key to future growth. With this background, we will achieve sustainable growth centered on the real estate business. Specifically, we will pursue capital efficiency and shift from a business model based on the premise of owning properties, to a business model of growth through both owning assets as well as capital recycling. In addition, we will consider liquidation without exceptions, starting with Tokyo Garden Terrace Kioicho, and optimize our business portfolio through capital recycling. To achieve these goals, I will strongly lead the Group together with President and COO Ryuichiro Nishiyama. We will also contribute to the development of society, which is our responsibility, by achieving sustainable growth centered on the real estate business.
As a corporate group engaged in a highly public business, we will continue to fulfill our social mission and responsibilities through corporate management that places the highest priority on “safety and security”. In a business environment that is expected to undergo significant change in the future, we will realize the outcome (aspiration) of “Resilience & Sustainability: Creating Invaluable Space and Time, Ensuring Safety and Security”, set forth in the Long-Term Strategy, meet the expectations of our customers, shareholders, and all other stakeholders, and thereby enhance total stakeholder satisfaction.
We sincerely appreciate your continued support for the Seibu Group.
Thank you for your continued support and patronage to the Seibu Group.
In the course of executing the “Medium-Term Management Plan FY2021-2023”, the Seibu Group overcame the major damage inflicted by the COVID-19 pandemic, and has also decisively implemented management reforms to lay the foundation for sustainable growth in subsequent years, thereby undergoing a major transformation of our business structure.
Based on this foundation, the “Seibu Group’s Long-Term Strategy to 2035” outlines our growth strategy with the real estate business as its core. Through the capital recycling business, all of our real estate assets will be candidates for liquidation, thereby realizing unrealized profits. The funds generated from the liquidation will be deployed for the redevelopment of properties in central Tokyo such as Takanawa and Shiba Koen, as well as the areas along the Seibu Railway lines, such as Seibu Shinjuku and Takadanobaba, the resort developments in Karuizawa, Hakone and other areas, and the acquisition of new properties. Through this reinvestment of funds, Seibu Group will achieve sustainable growth while contributing to social development, as well as increasing net asset value through capital recycling. As the primary driver of this capital recycling, we will liquidate Tokyo Garden Terrace Kioicho, a successful example of a redevelopment that contributes to the enrichment of the local community while significantly increasing real estate value, and use the proceeds for the next stage of our development and growth.
In the Hotel & Leisure business, we will aim to become a “global hotel chain with its origins in Japan” as our aspiration for fiscal year 2035. We will enhance the performance of each facility, and expand our network to 250 hotels in Japan and worldwide, focusing on management contracts, to create a wide range of value-added experiences that will move customers’ hearts and inspire them with dreams and hopes.
In the Urban Transportation and Regional business, we will implement various measures in relation to the Seibu Railway lines, especially the Seibu Shinjuku Line, to enhance and improve the terminals and network, engage in regional development integrated with grade separation, develop suburban facilities, enhance passenger services, and promote area management, working with the related government agencies wherever necessary, to enhance the value of the areas along our railway lines, and achieve sustainable growth of our railway business. In addition, while maintaining safe and stable transportation, we will promote digitization from both offensive and defensive perspectives, such as “smart” station operations (automation) and single-person train operations that ensures safety and security, in order to cope with anticipated personnel shortages in the future.
The Medium-term Management Plan (FY2024-FY2026) is positioned as the “seed-planting period”, being the first three years of our long-term strategy in which we aim to generate 100 billion yen in operating profit in FY2035. In the Real Estate business, we will proceed with the capital recycling business, and promote various initiatives including resort development. In the Hotel & Leisure business, we are targeting an expansion of 20 contracts/openings during the next three years, in order to establish the 250-hotel structure. We will also renovate guest rooms at the Mauna Kea Beach Hotel and the Shinagawa Prince Hotel, and continue to raise prices so that they are aligned with the value we provide. In the Urban Transportation and Regional business, we will execute the highest level of capital investment in our history in this “seed-planting period”, in order to promote value creation along our railway lines and establish smarter operations with an eye to the future, while placing a strong focus on safety, security, and comfort. We believe this Medium-term Management Plan is an extremely important milestone for the future of the Seibu Group. Together with all executives and employees, we are determined to put the Seibu Group on track for steady growth, and meet the expectations of all our stakeholders.
We look forward to your continued support.
