Bond-type Preferred Stock Q&A

Purpose and Features of Bond-type Preferred Stock Introduction

Tokyu Corporation has determined that maintaining proper balance sheet management and securing diverse funding capacities are essential for enhancing the value of its railway line service areas through ongoing investments. To expand its shareholders' equity without harming the interests of common shareholders and while considering capital efficiency, the company proposes amendments to its Articles of Incorporation to introduce bond-type preferred stock as a new fundraising method. Bond-type preferred stock has characteristics intermediate between stocks and bonds, without voting rights or conversion rights into common stock, and is non-participating, paying dividends only equal to or above the fixed dividends.

Issuance Plan and Impact on Shareholders

The timing of the first bond-type preferred stock issuance has not yet been decided, but if approved at the General Meeting of Shareholders scheduled for June 26, 2026, up to 100 billion yen can be issued. The fixed dividend rate is intended to be set below 5%, with actual terms to be decided after shareholder approval, considering investor demand. An application to list on the Tokyo Stock Exchange Prime Market is planned, providing investment opportunities to a broad range of investors. There will be no dilution of voting rights for common shareholders, and no impact on the company's dividend policy is anticipated.