Entertainment strategy through the consolidation of TOkyu Recreation as a subsidiary

「Subsequently, the share exchange was carried out on the effective date, completing the acquisition of all shares in 東急レクリエーション.」

「Our company and our subsidiary, 東急レクリエーション, resolved at meetings of their respective boards of directors held on 14 September 2022 to carry out a share exchange, effective 1 January 2023, under which our company would be the wholly owning parent company and 東急レクリエーション would be the wholly owned subsidiary, and entered into a share exchange agreement on the same day. This acquisition of all shares in the subsidiary is intended to enhance the corporate value of 東急レクリエーション and the Tokyu Group as a whole through various benefits, including the creation of further group synergies, greater management flexibility through more agile decision-making unconstrained by short-term stock-market evaluations after the company becomes unlisted, and improved management efficiency through cost reductions associated with eliminating the group's listing. For each share of 東急レクリエーション, 3.60 common shares of our company will be allotted and delivered.」

「In the lifestyle services business, operating revenue increased to ¥521.571 billion, up 1.0% year on year, and operating profit increased to ¥10.738 billion, up 10.0%, owing mainly to strong film exhibition performance supported by hit films at ㈱東急レクリエーション in the video business and progress in customer acquisition at ㈱東急パワーサプライ in the electricity retail business.」

「In the lifestyle services business, operating revenue increased to ¥345.635 billion, up 0.4% year on year, owing mainly to progress in customer acquisition at ㈱東急パワーサプライ in the electricity retail business. Operating profit decreased to ¥8.198 billion, down 0.9%, owing mainly to the reaction to the previous fiscal year's strong performance at ㈱東急レクリエーション in the video business, which benefited from hit films.」

「In the Lifestyle Services segment, operating revenue at 東急レクリエーション, the segment's motion-picture business, was ¥167.902 billion, down 0.6% year on year, and operating profit was ¥3.603 billion, down 6.5%, due mainly to the reaction to the previous year's strong performance, which benefited from hit films.」

「In the Lifestyle Services segment, operating revenue at 東急レクリエーション, the segment's motion-picture business, was ¥344.102 billion, up 1.9% year on year, and operating profit was ¥8.269 billion, up 19.0%, due mainly to the steady performance of its movie exhibition business, which benefited from hit films.」

「In the Lifestyle Services segment, operating revenue at 東急レクリエーション, the segment's motion-picture business, was ¥168.962 billion, up 2.5% year on year, and operating profit was ¥3.855 billion, up 18.8%, due mainly to the steady performance of its movie exhibition business, which benefited from hit films.」

「For the nine months ended 31 December, operating revenue was ¥825.453 billion, up 3.8% year on year, due mainly to the steady performance of our real estate leasing business and the increase resulting from making 東急レクリエーション a consolidated subsidiary at the end of the previous fiscal year. Operating profit was ¥66.449 billion, up 4.2%.」

「Operating revenue increased by 6.1% year on year to ¥337.09 billion, due in part to the increase from making 東急レクリエーション, which operates the video business, a consolidated subsidiary.」

「This included an increase resulting from the strong performance of the company’s real estate leasing business and from making 東急レクリエーション a consolidated subsidiary at the end of the previous consolidated fiscal year.」

「In advancing the medium-term 3-year management plan “STEP TO THE NEXT STAGE,” the company aims to expand 東急レクリエーション’s role within the group by making it the subsidiary responsible for the entertainment strategy and jointly promoting initiatives beginning with the development of Shibuya, the group’s principal base.」