seibu’s efforts to establish a long-term growth platformweb-cache-sc.stream.ne.jp/ · as of...

November 8, 2019

Seibu Holdings Inc. (9024)

http://www.seibuholdings.co.jp/en/

Seibu’s efforts to establish a long-term growth platform

November 8, 2019

“Sustainability & Dynamism"

『持続的かつ力強い成長に向けて』

Promoting digital management (DX)

Strengthen marketing capabilities

① Strengthening customer base focusing on our

membership program SEIBU PRINCE CLUB (SPC)② Expanding customer base of our hotel business

Expand into new business areas and fields

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November 8, 2019

【Strengthen marketing capabilities】

Current status of our customer base

The number of SEIBU PRINCE CLUB members

have reached 1 million at present

Number of SEIBU PRINCE CLUB members

and amount of transaction

as of Mar. 2017

2

830,000

approx. JPY 52 bn

Number ofSEIBU PRINCE CLUB

Members

and amount oftransaction

as of Sep. 2019

1,060,000

approx. JPY 63 bn

November 8, 2019

SEIBU PRINCE CLUB members : approx. 1.06 million

StayWell Rewards

approx. 70,000(as of Sep. 2019)

SEIBU PRINCE CLUB emi

(non-Japanese)


Saitama Seibu LionsFan Club members

approx. 110,000(as of end of 2019 season)

Members inSeibu Railway lines corridor


Prince status serviceGold and Platinum members：


Promote customer acquisition in each service

3


Current status of our customer base

November 8, 2019

Challenges are to increase the number of SEIBU PRINCE CLUB members who will use more than 1 service.

4


Marketing challenges

SEIBUPRINCE CLUB

members

November 8, 2019

approx. 50%

approx. 80%

over 90%

0%

25%

50%

75%

100%

1 company 2 companies 3・4 companies

Membership continuity ratio by number of access to membership services of Seibu Group companies 1

1: Portion of SEIBU PRINCE CLUB members as of FY2019/3 who have retained membership since FY2017/3. A separate rate is given for each category (category based on number of operating companies who services are used). SEIBU PRINCE CLUB members lose their membership qualification as of December 31 of the fiscal year in which the final day of a two-year period of non-use falls, being a period of two years from the last day of usage (day on which points are awarded).

The membership continuation rate tends to increase when customers are using services of multiple group operating companies.

(example)

(example)

5


Strengthening our customer base

November 8, 2019

We will increase the number of customers using multiple Group businesses and services with the SEIBU PRINCE CLUB as a common customer base

6



SEIBUPRINCE CLUB

members

November 8, 2019

We will expand our platform for revenue and profits by increasing the number of SEIBU PRINCE CLUB members and members using multiple services

Considerationof cardless app service

Promotingone-to-one marketing Consideration

of linking services andapps of each

business

7



(image)

November 8, 2019

Japanesewealthy

individuals

Millennials andinbounds

Wealthy individualsin oversea

We will strengthen our current foundation by acquiring new customer segments

8


Expanding customer base of our hotel business

November 8, 2019

✓ We are slightly behind our sales target in terms of the number of membership rights, however, the business has drawn interest from more upper-class customers than we had originally expected.→Steadily acquiring a new customer segment,

wealthy individuals in Japan

✓ Overseas expansion of The Prince Akatoki, a new luxury brand, will attract wealthy individuals abroad.

✓ Promote stronger mutual referral function between the StayWell membership program “StayWell Rewards” and SEIBU PRINCE CLUB membership.

9


Expanding customer base of our hotel business

November 8, 2019








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November 8, 2019

SEIBUPRINCECLUB

database

Shopping coupons

Restaurant recommendation

Leisure and event information

Consider Group-wide deployment of targeted and personalized marketing for individual customers

Digital marketing was launched at Prince Hotels from the second half of FY2019/3 ahead of Group-wide deployment

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【Promoting digital management】

Digital marketing

November 8, 2019

Centralized database to improve customer service

Hotelsystem

(Customer database)

Ms. A stayed Oct. 2017

Ms. A stayed May 2018

A Hotel

B Hotel

A Hotel

Ms. A stayed Oct. 2018

Ms. A booked for Sep. 2019

C Hotel

I prefer..

I’m allergic to..

[Example of recourse utilization]

The centralized customer database will allow us to efficiently provide tailored services

Increase the number of repeat customers and boost profitability by improving customer satisfaction

12


Using the hotel system at Prince Hotels

November 8, 2019

[Example of additional function]Introduction of digital coupon

We have digitized our breakfast coupons, and the data is linked to the card keys for each guest

Efficient operation from adoption of digital process

Customer convenience

Risk of unauthorized use

13


Using the hotel system at Prince Hotels

November 8, 2019








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November 8, 2019

[ Our own resources ] [ external resource ]

✓ Trials to create next generation transportation service: Jul. – Sep. 2019 Tokyo ⇔ Hakone・Shimoda

Oct. – Nov. 2019 Tokyo ⇔ Karuizawa✓ Collaboration with AirX Co., Ltd., which was adopted at Open

Innovation Program "Biz Lab Accelerator 2017“✓ Looking ahead, we will continue to assess business potential

through the trials and take on the challenge of developing next-generation transportation business in the future.

The challenge of developing next-generation transportation business

【Expand into new business areas and fields】

Seibu Lab initiatives

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November 8, 2019

✓ We have selected 10 out of 133 ideas, on our first SWING in 2018. These ideas with business potential are under feasibility analysis for commercialization.

✓ Encourage ventures and individuals to pitch ideas and participate in events.Some ideas were pitched by our own employees.

✓ We will implement this program continuously with the aim of accumulating business creation expertise.(The second SWING has kicked off in Oct. 2019)

(2018) (2019)

Our theme for SWING1 business creation program is to challenge social issues with new ideas

【Expand into new business areas and fields】

Seibu Lab initiatives

1 SWING: Seibu With Idea setter ‘N’ Growth hacker 16

November 8, 2019

Appendix

17

November 8, 2019

FY2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017・・・・・・・2020・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Foundation workShifting

gear

Improved financial structureand operation efficiencies

Enhancedprofitability

Reaping,Pioneering

Secondary growth

Extension of current capacity

EBITDA transition

ThemeConcentration on our core businesses

ThemeTaking advantage of our strengths to realize the strongest Seibu group

●”Current target level”

Maximize corporate valueMaximize shareholder value

“Long-term target level”

➢ Creating new business areas

➢ Expanding business fields

18

[FY2019-20 Mid-term management plan]

Long-term target levelDisclosed

May 11, 2017

November 8, 2019

Revision of figures and plans based on execution results

A plan that cements our initiatives from FY2017

onward and leads on to a new management plan

Reap benefits from investments to increase value

Strengthen financial structure to prepare for major future investments



Positioning of the current planDisclosed

May 14, 2019

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November 8, 2019

Theme

Basic policies

Key measures

- A three-year plan serving as a road map to the “Challenge Target” -


Toward sustainable, dynamic growth

✓ Pursue innovations from a new viewpoint and with speed✓ Establish a growth platform from a long-term perspective

To realize sustainable, dynamic growth, we need to focus on addressing the key issues of

“create new business areas” and “expand existing business fields” based on

our basic policies. We have added “Continuously strengthen management foundation” to the five measures in the current plan and will promote initiatives over the next three years based on the following six key measures.

(1) Strengthen marketing capabilities(2) Make effective use of the Group’s assets(3) Strengthen collaboration inside and outside the Group(4) Disciplined and efficient capital expenditure(5) Create an organization and corporate culture that

brings about innovation(6) Continuously strengthen management foundation


Theme and basic policyDisclosed

May 14, 2019

Topic1Promoting Digital Management (DX)

Topic2Promoting Sustainability

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November 8, 2019

Disclaimer

The forward-looking statements contained in these materials are based on currently available information and certain assumptions deemed reasonable by the Company.

Therefore, please note that actual results may differ due to various factors in the future.

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