In recent years, the domestic construction market has been expanding due to vigorous demand ahead of the Tokyo 2020 Olympic and Paralympic Games, steady increases in construction investment and capital investment.

Against this backdrop, the Tokyu Construction Group has outlined four basic policies under its Mid-Term Management Plan (2018–2020): Shinka 2020. These are to transform human resources and our organization to motivate employees and improve their capabilities, reinforce our competitiveness in domestic construction through our customer-first policy and problem-solving skills, diversify revenue sources by strategically expanding the business, and enhance our management and financial bases to improve profitability. In line with these policies, we have worked to further enhance our domestic construction business by strengthening relationships with clients as business partners and leveraging information and communication technologies to enhance efficiency. In the real estate business, we have acquired income property, while in the international business we have endeavored to win official development assistance (ODA) projects.

As a result, in FY03/19 net sales, operating income, and ordinary income reached the highest levels since our corporate split in 2003.

We expect the domestic construction market to remain favorable, buoyed by public-sector investment. At the same time, construction costs are likely to skyrocket due to demand pressures stemming from multiple large-scale redevelopment products centered on major metropolitan areas. Meanwhile, over the medium to long term we anticipate a qualitative shift in demand, with the conventional spot-revenue model based mainly on new constructions giving way to a recurring-revenue model based on maintenance and repair. Also, labor shortages are likely to grow increasingly severe as large numbers of aging construction workers retire, and our industry will be called upon to reduce long working hours and implement workstyle reforms.

We are revising our management structure to facilitate responses to these issues from the short- and medium/long-term perspectives. As part of these revisions, I was appointed president on June 1, 2019. Under the new management structure, we will steadily implement measures stemming from the basic policies of the Mid-Term Management Plan (2018–2020): Shinka 2020. Consequently, we aim to grow as a corporate group that embraces change in the operating environment. By harnessing the collective power of the Tokyu Group, proactively recruiting personnel, and engaging in mergers and acquisitions, we intend to develop into a corporate group characterized by its ability to provide customers with comprehensive construction solutions. Furthermore, we will concentrate on building stronger ties with customers to win orders, transforming construction production systems, and streamlining back-office departments.

November 2019 marks the 60th anniversary of our founding. I would like to take this opportunity to express my sincere gratitude to our customers and many other stakeholders for your support over this period. We will continue contributing to society in accordance with our mission statement: “We will help each person realize his or her dream through creating comfortable living environments that allow peace of mind.”