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Management Plans & Strategy

▼ 1.Schematic diagram of the Seibu Group's strategy, with definitions
▼ 2.Long-Term strategy
▼ 3.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.
We are awaiting the formulation of the Medium-term Management Plan. The Fiscal 2020 will be managed based on “Key Business Issues in FY2020.”

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.Medium-term Management Plan

On May 26, 2020, we decided to cancel the formulation of “FY2020-FY2022 Seibu Group’s Medium-term Management Plan” (new medium-term management plan), a three-year plan with FY2020 as the initial year and withdraw the “FY2019-FY2021 Seibu Group’s Medium-term Management Plan” (current plan), a three-year plan with FY2019 as the initial year, unveiled on May 14, 2019.

1. Background to the cancellation of formulation of the new medium-term management plan and withdrawal of the current plan
The Company positions the current plan as the “plan that cements our initiatives from FY2017 onward and leads on to a new management phase and management plan,” and in addition to reaping benefits from investments to increase value, we have carried out initiatives for future business growth designed to strengthen our financial structure and accelerate our expansion into new business areas and fields. We also proceeded with the preparation for the new medium-term management plan toward today’s announcement. However, the business environment surrounding the Group has changed greatly from what was envisaged in the current plan and the new medium-term management plan due to the recent spread of the novel coronavirus (COVID-19). Given the future uncertainty as to how long it will take until there is a full recovery, the Company decided that it is necessary to review the plan contents, and we canceled the formulation of the new medium-term management plan and withdrew the current plan.

2. Key Business Issues in FY2020
Given the future uncertainty as to how long it will take until there is a full recovery, all efforts are currently focusing on getting through these difficult circumstances.
Placing utmost priority on focusing our efforts to the minimum required business operations until the current turmoil settles down, we are working to secure necessary working capital and deliver services that bring “smiles and good spirits” to customers and society.
Moreover, while placing utmost priority to the above standpoint, we will continue to pursue key measures envisaged in the new medium-term management plan to every extent possible and press ahead with initiatives for structural reforms informed by our careful observations of how the people’s sense of values change in the post-COVID-19 era. Through that approach, we plan to be hitting the ground running when normal operations resume.
To get over this difficult time, we have compiled our key issues across the Group. For more details, please refer to the contents below. 

Notice Regarding the Cancellation of Formulation of “FY2020-FY2022 Seibu Group’s Medium-term Management Plan” and Withdrawal of “FY2019-FY2021 Seibu Group’s Medium-term Management Plan” 

Key Business Issues in FY2020