Seibu : Integrated Report 2023

Integrated Report

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Meeting Challenges: The Seibu Group

Service Transformation that Leverages Our Customer Base

Converting daily life into data to offer transportation services that meet each person'expectations

SAEKI Tatsuya

Marketing Department, Seibu Railway

As the needs and behaviors of consumers living along Seibu rail lines diversify post-COVID, what can a transportation business operator do to meet their needs? One answer is our passenger points service. We developed a service that utilizes movement data linked with member information to award points according to conditions. Gathering and analyzing information about customers and their behaviors through their daily usage of buses and railways, we do more than just award points. We also use it to communicate information and offers that provide value tailored to each individual customer, for improving our services and creating new services. As a result, customers grow even more inclined to use services provided by the Seibu Group. Positive cycles such as these between customers and our corporate Group are what I hope to create.

Performing at a high level and becoming the hotel operator of choice for both customers and

hotel owners

OSAKI Seiya

General Manager,

Grand Prince Hotel Osaka Bay, Seibu Prince Hotels Worldwide

For the Seibu Group which is shifting business models in the Hotel and Leisure business, operating Grand Prince Hotel Osaka Bay is a highly meaningful challenge that could become a key inroad domestically. Together with our hotel staff, we will bring inspiration to even more customers leveraging the services expertise and brand developed throughout our history with Prince Hotels to this point. As professionals in hotel operations, we will also generate returns that exceed owners' expectations. I believe that proving we can achieve those things repeatedly is the only way to gain the trust of customers and owners.

Building the Industry's

No.1 Quality

Hotel Chain

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Meeting Challenges: The Seibu Group

Urban Development in the Tokorozawa Area

Creating new lifestyles through urban development focused on society'

©SEIBU HOLDINGS INC./SUMITOMO CORPORATION needs and the distinctiveness

of Tokorozawa

KAWADA Takeshi

Urban Development Division, Seibu Realty Solutions

From being a "commuter town" to becoming a "town for living" : That is the theme of urban development in Tokorozawa. In these city streets overflowing with all types of charm, with history, nature, sports and more, we are embarking on a project to develop a shopping center that will be a major regional draw, generating experiences, enjoyment, and interaction only possible in a physical setting.

From local communities and government to the Seibu Group itself and everyone involved in the project, hopes are riding high for this final piece of the puzzle in the development engineered by the Seibu Group. With the opening of these facilities, we aim to nurture a neighborhood where people can spend time that lives up to their own imaginations while enjoying Tokorozawa's distinctive combination of urban and suburban charm. It will be a neighborhood that brings together people who reside, work, and travel in the area to form a single inclusive community of its own.

Unlocking the maximum potential of forests to create sustainable society and communities

YODA Mayuko

Business Development Department, Seibu Landscape

How will the Seibu Group confront the formidable challenge of carbon neutrality? The key to that lies in the vast areas of forests owned by the Seibu Group in areas throughout Japan. We are gathering and compiling data on the company-owned forests handed down through our Group over the years to create visualizations of its environmental value which we will then spotlight. These forests have environmental conservation and cultural functions that we will sufficiently utilize. At the same time, we will also use them to generate cycles of resources and energy. This includes using forest industry materials as fuel to generate power or in boilers. I would like to work hand-in-hand with local communities and other stakeholders and with society to take on this challenge, turn these concepts into reality, and link them to future generations.

Engaging in Sustainability Actions

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Group Vision

The Group Philosophy

The Seibu Group's unchanging

basic approach

All of us at the Seibu Group work to help develop the local communities, as well as society at large, to protect the environment, and to provide safe, pleasant services for memorable experiences.

We also proudly and responsibly meet the challenge of creating the kind of new services that will move customers.

The Group Declaration

Action Guidelines on how to provide

customers with active and

moving experiences

Our aim is to be professionals promoting customers' activities for rich experiences.

1. Be earnest
2. Walk together
3. Meet challenges

Slogan

The Group's Vision

The best and

strongest

corporate group

at enriching

people's lives

Action and	Companies that
inspiration for	create and achieve
an enriched,
our customers
sustainable society

Index

The Seibu Group's Value Creation Process

1. Meeting Challenges: The Seibu Group

1. Group Vision

1. Message from the CEO

1. History of the Seibu Group
   11 The Present Day of the Seibu Group
   13 Strengths of the Seibu Group
   15 Strategy of the Seibu Group
   17 Value Creation Process
   19 The Group's Vision

Value Creation Strategy & Measures

21 Message from the COO

25 Core Three Presidents x Outside Directors Round-Table Discussion

29 Feature 1: Service Transformation that Leverages Our Customer Base

1. Feature 2: Building the Industry's No.1 Quality Hotel Chain

1. Feature 3: Urban Development in the Tokorozawa Area

1. Main Strategies to Be Deployed in the Real Estate Business

FY 2022 Financial Highlights

1. Message from the Director in Charge of Financial Strategy

1. Progress on the Medium-term Management Plan

1. Review by Business Segment

1. Financial and Nonfinancial Highlights

Business Infrastructure

48 Sustainability Management

51 Progress of Sustainability Actions

53 Information Disclosures Based on the TCFD Recommendations

55 Human Capital Strategy

1. Discussion on Human Capital

1. Corporate Governance

1. The Board of Directors

1. Audit & Supervisory Board Members and Managing Officers

Corporate Data

71 Financial and Nonfinancial Data

73 Major Subsidiaries / Businesses and Offices Information for Investors

Editorial Policy

The Seibu Group considers it important to present initiatives for long-term, sustainable growth in a comprehensive way that enables all stakeholders to gain a clear understanding. This includes presenting financial information, including overviews of performance and business activities, as well as management strategies, in addition to nonfinancial information, including that relating to human capital, local communities, the environment, safety and security, and governance. Based on this approach, while providing enhanced and integrated financial and nonfinancial information, this report has been prepared based on the International Integrated Reporting Framework provided by the International Financial Reporting Standards Foundation, and the Guidance for Integrated Corporate Disclosure

and Company-Investor Dialogues for Collaborative Value Creation formulated by Japan's Ministry of Economy, Trade and Industry. Accordingly, this report compiles and presents highly important information for understanding the Seibu Group. For further details, please refer to our corporate website and other communication media.

Period Covered

April 1, 2022 through March 31, 2023

Please note that some matters that fall outside this period are also reported on.

Fiscal years referred to in this report cover the period from April 1 to March 31.

Fiscal 2022 refers to the fiscal year ended March 31, 2023.

Proper Use of the Integrated Report 2023

The business forecasts, targets, plans, forecasts and other forward- looking information of the Group contained in this report should be regarded as the judgment and thoughts of the Company at the present point in time, that have been created based on information currently available as of the release of this report. Actual results of earnings, financial position, etc. of the Group may differ significantly from the content of this report or the content surmised from this report due

to various uncertain factors at the time of this report's preparation, including fluctuations in the state of domestic and global politics, economies and financial conditions.

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Message from the CEO

Embarking on our next growth phase with new organizational profiles designed for rejuvenation and specialization

GOTO Takashi

Chairman and Representative Director

Chairman and CEO

Seibu Holdings

this manner. Aside from that, we are also bolstering our digital management efforts which include building a Group marketing platform, and accelerating initiatives toward

a decarbonized society such as setting CO2 emissions reduction targets.

Revamping the management profiles of the Group's core four companies to pursue rejuvenated management and stronger specialization

These reforms have produced effects that helped us achieve positive profitability in each quarter of the fiscal year ended March 2023. Having achieved that, we then set out toward our next growth phase by transitioning to new management profiles. Our aim was to rejuvenate and consolidate expertise in management profiles throughout the Group.

On April 1, 2023, I assumed the role of Chairman, Representative Director, and CEO. On the same day, NISHIYAMA Ryuichiro became my successor as the president, Representative Director, and COO. Mr. Nishiyama is responsible for business execution and some external activities. As CEO, I will be guiding continuous growth of the Group from a broad, long-term perspective.

"Bringing smiles to both our customers and employees" along with"Smiles ahead"

As the head of our management, I have consistently been trying to embody our Group Vision which was formulated in 2006. In order to bring smiles to customers, each and every person in our Group must be a professional who crafts the very best services and conceives novel types of business that continuously provide customers with new inspiration and joy. To achieve that, our Group will be working harder than ever on human capital development to raise the bar even higher for our human capital. Our energy will be focused on developing high-expertise personnel and management personnel who challenge themselves to create services and businesses that only the Seibu Group can offer. At the same time, we will also continue our efforts to create workplace environments that enable our employees to harness their full capabilities. To turn our Group slogan "Smiles ahead" into a reality, one critical mission for me going forward is "Bringing smiles to both our customers and employees" by boosting employees' capabilities and

job satisfaction.

In addition, two key issues that I intend to work on as CEO over the medium- to long-term are restoring the tourism industry and environmental problems. The tourism

Building platforms for new, continuous growth after the largest crisis our Group ever faced in the pandemic

I have been involved in management at the Seibu Group for over 18 years. Our Group has faced a number of crises during that time, from losing credibility when we were delisted the year before I joined management to the financial crisis in fall 2008 and the Great East Japan Earthquake

in March 2011. However, no crisis since the end of World War II has been as severe for our Group as the COVID-19 pandemic that has lasted over three years since 2020.

Demand completely evaporated in an instant in the Hotel and Leisure segment when the pandemic struck. Beyond that, demand also plummeted in the Urban Transportation and Regional segment which had previously been a highly stable revenue base. Particularly during the fiscal year ended March 2021 when stay-at-home directives were harshest, we were unable to avoid posting our first business loss since the financial crisis in the fiscal year ended March 2009.

The light at the end of the COVID tunnel has finally come into view since 2023 began, but there will always be a possibility that another such pandemic could occur again in the future. Add in factors such as the increasingly frequent occurrences of natural disasters due to climate change and continuously soaring resource and energy prices due to Russia's invasion of Ukraine, and the business environment looks increasingly uncertain.

Setting our sights on this era of the unknown referred to as "VUCA," we enacted bold management reforms under the theme of "resilience and sustainability," based on the Seibu Group's Medium-term Management Plan (FY 2021- FY 2023). This theme was also the focus of the global summit held in November 2022 by the World Travel & Tourism Council (WTTC).

Specifically, we implemented swift measures to increase our resilience to changes in the environment through asset- light business operations. These included transferring

and securitizing some of our real estate, hotel, and leisure assets, as well as transferring our stock holdings of Seibu Construction. As a result, we restored our equity-to-asset ratio from the 17% range in fiscal 2020 to the 23% range in fiscal 2023, greatly improving our financial standing which had suffered due to the pandemic. "Asset-light" is a strategy not only for making ourselves more resistant to changes

in the environment, but also for achieving growth that is sustainable. For example,

we switched business models in the hotels business operated by Seibu Prince Hotels Worldwide from ownership and operations to a management contracts (MCs) model, enabling us to operate more flexibly and nimbly. On the other hand, we consolidated group-owned assets at Seibu Realty Solutions (SRS) where we will leverage extensive knowledge in effectively utilizing, developing, and managing real estate to maximize value. We reorganized our businesses to pursue sustainable business growth by harnessing the specializations of each Seibu Group company in precisely

Mr. NISHIYAMA has spent many years handling public relations and corporate planning for our Group. In addition to his leadership skills,

I am confident that his honesty, fairness, and the high esteem with which he is regarded make him the ideal selection as our COO.

Additionally, OGAWA Shuichiro who has extensive

experience at railway worksites and has served many years as general manager of transportation has been appointed as President of Seibu Railway. KANEDA Yoshiki, who has experience in overseas hotel operations as a professional handling business in MCs, has been appointed as President of Seibu Prince Hotels Worldwide. Real estate business expert SAITO Tomohide who has extensive experience in asset business was appointed President of SRS in June 2022. Thus, new Presidents have taken over at all of the core four companies in the past two years.

Based on these new organizational profiles geared toward rejuvenation and expertise, we can fully harness the expertise of each company. One example would be to leverage the powerful real estate deployment capabilities of SRS to pursue greater value for the areas around Seibu Railway lines. Doing so, we believe we can maximize synergies within the Group and achieve an even higher level of overall optimization.

industry suffered tremendous damage from the COVID pandemic. For Japan, where the population is aging and the birthrate declining, restoring the tourism industry including inbound tourism is a key social issue. Overcoming this issue will be indispensable for energizing communities and creating jobs in the future. Our Group operates a diverse range of tourist businesses in some of Japan's premiere resort areas such as Karuizawa, Hakone, and Furano, and central areas of Tokyo such as Shinagawa and Takanawa. Leveraging these assets along with our business know- how, we will pace the sustained development of the tourism industry while helping to energize local communities. On the other hand, forests and wilderness comprise roughly 70% of our Group's vast 100 million square meters of real estate holdings. We will cherish this abundance of nature as

we accelerate our eco-friendly resort development and carbon neutrality initiatives.

The Seibu Group will continue its quest to create services and businesses with new value by harnessing the high-level expertise of each individual employee. As expressed in our Group Vision, we will aim to be the best and strongest corporate group at enriching people's lives by working to help develop the local communities, as well as society at large, by protecting the environment, and by providing safe, pleasant services for memorable experiences. We will achieve continuous growth by "Bringing smiles to both our customers and employees" in addition to "Smiles ahead." To all our stakeholders, we look forward to your continued support.

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History of the Seibu Group

Through over a century in business, we have grown	Transport
into a corporate group with a supportive presence in
all types of life settings
Urban Transportation and Regional -Offering more convenience while expanding our rail coverage area-

Shopping and

dining

Making

"your everyday" more enjoyable

1912 & 1915

Established Musashino Railway, the predecessor to Seibu

Railway, then opened service between Hanno and Ikebukuro

1932

Bus service launched by Higashiura Jidosha, the predecessor to Seibu Bus, primarily in the Urawa area

1945

Expanded rail network by absorbing the former Seibu Railway, owner of the present- day Shinjuku Line and Tamagawa Line

1969

Opened the Seibu Chichibu Line, introduced the "Red Arrow Limited Express" train

1985

Began operating highway buses between Ikebukuro and Niigata

1998

Opened mutual through train service between the Ikebukuro Line and Eidan Yurakucho Line

2008 & 2013

Opened mutual through train service with the Tokyo Metro Fukutoshin Line,Tokyu Toyoko Line, and Yokohama Minatomirai Railway Minatomirai Line

2017

Began operating the reserved-seat"S-Train"

2019

Began operating limited express train "Laview"

2020

Closed Toshimaen

Amusement Park

2023

Renovations of Ikebukuro & Toshimaen Stations

Lifestyles

Hotel and Leisure -Offering various forms of leisure enjoyment, while expanding our network of hotels and resorts to locations throughout Japan, and the world-

1917

Launched leisure business with the opening of Kutsukake Amusement Park

1923

Opened Green Hotel

1947

Opened Prince Hotel

in Karuizawa

1950

Opened Seibuen Amusement Park

1950-1961

Expanded leisure business with the openings of Yunohana Hotel, Manza Onsen Ski Resort, Oiso Long Beach, and Naeba Ski Resort

1953-1964

Opened the Takanawa, Akasaka, and Tokyo Prince Hotels

1977-1982

Opened the Shinjuku, Shinagawa, Ikebukuro, and Shin-Takanawa Prince Hotels

1990 & 1994

Opened Prince Hotels on the islands of Hawaii and Oahu in Hawaii, USA

2005

Opened Tokyo Prince

Hotel Park Tower

(currently The Prince

Park Tower Tokyo)

2017

Acquired the StayWell Hospitality Group

in Australia

Opened Nagoya Prince Hotel Sky Tower

2019 & 2020

Opened members-only hotel brand Prince Vacation Club in Karuizawa and Izu

Opened firstlocation of next-generation hotel brand Prince Smart Inn (PSI) in Ebisu area of Tokyo

2019

Opened The Prince Akatoki London, the firstlocation of our global luxury hotel brand

2020

Launched contracted operation of The Hotel Seiryu Kyoto Kiyomizu and Tokyo Bay Shiomi Prince Hotel under management contracts (MCs)

2021

Post-renovation reopening of Seibuen Amusement Park

2022

Launched new hotel operations in Okinawa, Fukuoka, and Osaka

The group of

companies

making

"your everyday"

better

Real Estate -Expansion into shopping centers and office buildings in addition to residential housing-

1914

Purchased the land for Mejiro Cultural Village

1918

Began development on Karuizawa Sengataki Resort

1955-1964

Launched condominium business in Honmoku, in addition to outer Tokyo municipalities and in Tokorozawa

1977

Opened Prince Promenade PePe

1985-1994

Launched large development primarily for the Tokyo metropolitan area and condominium business at Minamiboso Onjuku Seibu

Greentown residential resort

1995

Opened Karuizawa Prince Shopping Plaza

2007

Launched "Emio" shopping centers directly connected to stations

2013

Launched rental apartments "emilive"

2016

Opened multi-purpose complex Tokyo Garden Terrace Kioicho

2019

Opened DaiyaGate Ikebukuro

2020

Grand opening of Grand Emio Tokorozawa

2019-2022

Expanded with new businesses including "emiffice" and "Emi Cube"

Established Step Out Co., Ltd. and entered the outdoors business

Sports

Other Business -Operating a broad range of community-based businesses-

1925	1943	2008
Brought the railway that is the present-day	Brought Ohmi Railway into the Group	Changed team name to Saitama Seibu Lions
Izuhakone Railway into the Group

1941	1978	2021
Established
Established Tokyo Taika Kenzai (meaning:
Seibu Lions	Renovated ballpark amenities of
Tokyo Fire-Resistant Construction
	Belluna Dome
Materials), the predecessor to Seibu
Construction		ⒸSEIBU Lions /
		TEZUKA
		PRODUCTIONS

9 Seibu Holdings Inc.

2022	Recreation
Transferred ownership stake in Seibu
Construction

The enjoyment	Hotels and
vacations
of something
"extraordinary"
to enrich
people's lives

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The Present Day of the Seibu Group

Developing each business while leveraging their respective attributes to build a balanced profit structure

Hotel and Leisure

Operating a broad range of hotels, golf courses, and other leisure facilities catered to customer needs in Japan and internationally

Urban

Transportation

and Regional

Operating railway lines that connect to major city-center terminals such as Ikebukuro, Shinjuku, and Takadanobaba, along with well-known tourist spots including Chichibu,

Transport	Hotels and
vacations

Note: As of March 31, 2023

In Japan

Kawagoe, and Hanno

Note: As of March 31, 2023

Operating length:Number of stations:Average passengers per day:

176.6 km	92	1,530 thousand
		(FY 2022)

¥143.7billion

(32%)

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Financial results

U

r

in FY 2022

	¥191.1billion
	(43%)
	H
	o
	t
	e
	l
	a
	n
Operating	d
s
	L
	e
revenue:	i
e
	u
	r

¥428.4billion

• Ratios of revenues are after excluding adjustment

Hotels:	Total hotel rooms:	Golf courses:
56	19,528	28
	Internationally
Countries & regions	Hotels:	Total hotel rooms:
where we operate:
11	28	4,853

Real Estate

Operating business leveraging real estate on the scale of a large developer, with a balanced portfolio of shopping centers, office buildings, and residential housing that promises stable revenues

				Note: As of March 31, 2023
Area of main land ownership		Area of main land ownership		Number of commercial
in the 23 wards of Tokyo*1:		outside the 23 wards of Tokyo*1:		tenant stores*2:
401thousand m2		25,924thousand m2		approx.1,100

*1 Aggregated area of land owned at business locations with more than ¥1 billion in book value *2 Number of stores for which Seibu Realty Solutions has entered into leasing agreements

11 Seibu Holdings Inc.

R
e
a
l
E
s
t
	a
	t
	e						s
¥74.8 billion						s	¥39.2 billion
				e
				in
			s
		u						ⒸSEIBU Lions
		OtherB
(17%)								(9%)

Shopping and	Recreation
dining
Lifestyles	Sports

Izuhakone Railway

Operating length:

29.4 km

Other business

Operating community-based businesses in the Izu-Hakone area and Shiga Prefecture's Lake Biwa area, both possessing an abundance of tourism resources

Flagbearers of the Seibu Group are the Saitama Seibu Lions, contributing to the growth of the Group's fanbase

Note: As of March 31, 2023

Yearly ballpark attendance to

Ohmi Railwayregular season baseball games: Operating length:

59.5kmOver1,210,000

(2022 season)

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Strengths of the Seibu Group

Leveraging our four strengths including contact points with a broad range of customers to creating the Seibu Group's own unique type of value

Additional strengths we can leverage thanks to strengths 1 through 3

Strength
1	Robust customer base

					©SEIBU Lions
Residents near	Approximately	SEIBU PRINCE CLUB	Approximately	Saitama Seibu Lions	Approximately
5.5million	1.5million	100thousand*
railway lines	members	Fan Club members

* Not including those who are only members of Saitama Seibu Lions Ticket.

The broad-ranging customer base built through our activities over the years is a strength that supports our business growth. This includes approximately 5.5 million residents in areas served by our railway lines, plus roughly 1.5 million SEIBU PRINCE CLUB members, customers of hotels and leisure facilities in Japan and internationally, and around 100,000 fan club members for the Saitama Seibu Lions professional baseball team.

Strength	Contact points with a
4
	broad range of customers

Combining our abundance of domestic and international assets with our expertise in operating many different types of facilities and businesses, we offer our customers centered on SEIBU PRINCE CLUB members exciting and impressive experiences that bring out smiles in various life settings, from "shopping & dining" to "hotels & vacations," "recreation," "transport," "lifestyles," "sports,"

Strength

2	An abundance of appealing assets				central wards of Tokyo such as Takanawa, Shinagawa,
									Just counting our major facilities in areas within the 23
									and Shibakoen, we own around 400,000 m2 of land. We
									also own hotels, golf courses, and ski resorts in some of
									the country's premiere resort areas such as Karuizawa,
									Hakone, and Furano. Including little-used and unused land
									holdings such as forests and wilderness, we own a total of
									over 100 million m2 of land nationwide, making us one of
									Japan's leading asset holders. We also own assets overseas
Grand Emio Tokorozawa				Kawana Hotel Golf Course
					including hotels in Hawaii and London, and our Group
									company Staywell has a network of hotels in countries
									around the world. This network and diverse range of
									domestic and international assets is a tremendous strength
									for our redevelopment and business expansion efforts
									going forward.
Prince Grand Resort Hakone	Shinagawa Prince Hotel	The Prince Akatoki London	DaiyaGate Ikebukuro

and more. In addition to repeat visits, this will also lead to usage of our other facilities and increase the value of our corporate Group. Through the use of digital technologies along with these numerous and diverse customer contact points, we will also be able to provide more individually tailored information and services which will further expand our customer base.

Strength
3	High-level operations expertise in each business
		Hotel operations expertise		Transportation expertise		Leisure facilities expertise		Meeting and convention		Building complex
					venue operations expertise		operations expertise

In addition to hotel accommodations, Seibu Prince Hotels Worldwide also operates many other types of facilities including restaurants and banquet halls, as well as golf courses and other sports facilities, offering a wide range of services to large numbers of customers. Companies in the Seibu Group are also involved in the operations of a wide variety of businesses and facilities, from transportation systems such as railways and bus lines to leisure facilities such as Yokohama Hakkeijima Sea Paradise and Yokohama Arena, professional baseball team, and more. We believe that the wide-ranging expertise gained from these operations will also be tremendously beneficial in expanding the network of facilities that we operate and creating new services including through collaborations with

other companies.

Shopping and	Sports
	dining
	Robust customer
		base
Transport		+		Recreation
	something extra
Lifestyles		Hotels and
	New
		vacations

businesses

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Strategy of the Seibu Group

Three strategies that transform business models and strengthen our company composition

External environment and risks / opportunities

Heightened pandemic and geopolitical risks

Risks		Opportunities
• Less train and bus riders due to lockdowns,		• Catering to increased demand for
self-restrictions on movement, etc.		new services
• Delayed recovery of inbound travelers
• Increased fixed expenses burden and
squeezed revenues due to hotels and other
facilities operating at lower capacity

Accelerated technological innovation

Risks		Opportunities
• Inability and insufficient human capital	• Expanding demand for new services that
to accommodate accelerating digital		utilize AI and IoT
transformation (DX)	• Better labor productivity by saving labor
• Loss of business opportunities		at facilities
• Failures or breakdowns on systems
in operation

Aging society and low birthrate in Japan

Risks		Opportunities
• Declining numbers of customers	• Better leveraging human capital by
• Intensifying competition in hiring		incorporating work style reforms
	• Operating services and businesses with a more
		global perspective by promoting diversity

What the Seibu Group considers to be

challenges ahead

• Overhauling our highly volatile revenue structure due to external factors

• Need to bolster DX

• Need to formulate human capital strategy to accommodate changing business environments and workstyles

Management reforms

Digital management

Strengths and Three-Pronged Strategies

• Asset-light business operation • Lowering the break-even point

• Service transformation to suit the new normal

Refer to :

• Feature 1: Service Transformation that Leverages Our Customer Base (p.29)
• Feature 2: Building the Industry's No.1 Quality Hotel Chain (p.31)
• Feature 3: Urban Development in the Tokorozawa Area (p.33)
• Progress on the Medium-Term Management Plan (p.39)

• Offense-oriented DX /marketing strategy • Defense-oriented DX

Refer to :

• Feature 1: Service Transformation that Leverages Our Customer Base (p.29)
• Progress on the Medium-Term Management Plan (p.39)

Shift to a decarbonized society & worsening climate change

• Specific measures to address the international shift to

• 12 agenda items in four areas (key topics)

• Response to climate change risk

Risks

• Impact on sales activities due to unseasonable weather or extreme weather events such as typhoons, cold summers, heatwaves,

or high snowfall

• Damage to equipment or facilities due to insufficient preparedness for natural disasters, etc.

• Increased costs incurred in adjusting to climate change

Opportunities

• Increasing demand for natural energies such as solar power

• Increasing demand for ethical business practices

decarbonized society and the impacts of climate change

• Need to create the right products and services for changing trends and needs

Sustainability	Refer to :
▷Progress on the Medium-Term Management Plan (p.39)
	▷Sustainability Management (p.48)
	▷Progress of Sustainability Actions (p.51)
	▷Information Disclosures Based on the TCFD
	Recommendations (p.53)

Changing values

Risks		Opportunities
• Changing values and diversifying lifestyles		• More in-depth products and services to
impacting our business models		address diversifying consumption
• Intensifying competition from companies		• Developing new fields of products
in other industries entering shopping &		and services
entertainment, leisure, and
lifestyle-related businesses

	Strengths		Strengths		Strengths
	1		2		3
			An abundance of		High-level operations
	Robust customer base			expertise in
		appealing assets
				each business

Strengths

4

Contact points

with a broad range

of customers

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Value Creation Process

Meeting regional and societal needs and achieving our Group Vision with a wealth of hard assets and creative soft content

Financial KPIs

External environment

▷P.15

• Heightened pandemic & geopolitical risks

• Accelerated technological innovation

What the Seibu Group considers to be challenges ahead

▷P.15

• Overhauling our highly volatile revenue structure

• Need to bolster DX

• Need to formulate

Value creation

Strategy of the Seibu Group ▷P.15

Management

Urban Transportation and Regional

Hotel and Leisure

Digital

reforms

management

Sports

Real Estate

Sustainability

Conscious to reach ROE

of at least 10%

Profitability (Net profit margin ratio)

at least 10%

Efficiency (Total asset turnover)

0.3x or higher

Financial soundness (Financial leverage)

around 3×

Non-financial KPIs

CO2 emissions
In FY 2030 vs. FY 2018	FY 2050

The Group's

Vision

The best

and

strongest corporate group at

• Aging society & low birthrate in Japan

• Shift to a decarbonized society & worsening climate change

• Changing values

human capital strategy

• Specific measures to address the shift to decarbonized society and climate change

• Need to create the right products and services for changing trends and needs

		Deployment of
		human capital	▷P.55
	Strengths of the Seibu Group ▷P.13
	Strengths				Strengths
	1	Robust			2 An abundance of
		customer base			appealing assets

Upgrade functions ▷P.40 (strengthen specialization)

Strengths

3 High-level operations

expertise in each business

46% decrease	Net zero
Renewable energy	Target ratio of female
implementation rate	managers by FY 2025*
FY 2030	FY 2050	15%
50%	100%
Target rate of annual	Target rate of men
paid leave	taking parental leave

enriching

people's

lives

Strengths

4

Contact points with a broad range of customers

Business infrastructure ▷P.59 Corporate governance / Compliance

Slogan Smiles ahead

17 Seibu Holdings Inc.

by FY 2025*	by FY 2025*
80%	100%
Target ratio of non-	Target ratio of
Japanese managers	experienced hire
by FY 2025*	managers by FY 2025*
Current level	Current level
(0.1%)	(14.5%)
or higher	or higher

• Numerical targets for the four core companies (Seibu Holdings, Seibu Railway, Seibu Prince Hotels Worldwide, Seibu Realty Solutions)

Integrated Report 2023

18