This is Horie, President, Tokyu Corporation. I would like to thank you for your precious time despite your busy schedule to attend our financial results briefing. Allow me to explain the second quarter results, as well as the outlook for FY 2023. Please go to page four. This shows the main points of the second quarter FY 2023 results. Operating revenue was JPY 483.4 billion. Operating profit was JPY 45.5 billion. Profit attributable to owners of parent was JPY 35 billion. As for year-on-year comparison, due to the recovered demand in businesses, particularly in transportation and hotel and resort, due to the shift of the COVID-19 infection to Category 5 and other factors, operating revenue was up JPY 48.7 billion. Operating profit was up JPY 23.7 billion.
Profit attributable to owners of parent was up JPY 16.5 billion, thanks to the growth in operating profit and an increase in the share of profit of entities accounted for using equity method. Please refer to page five. This shows the key points by segment. Allow me here now to expand on the comparison year-on-year. In transportation, with the increased number of passengers transported by the Tokyu Railways, driven by the recovered demand as well as the fare revision, and also thanks to recovery in Tokyu Bus and other businesses, operating revenue was up by JPY 13.7 billion. Real estate business. Tokyu Hotels in our mixed-use development building enjoyed a firm business. Also, both real estate sales and real estate leasing grew over the previous year, resulting in the growth in profit by JPY 4.7 billion.
Hotel and resort business was up by JPY 4.1 billion, thanks to the increased ADR driven by the recovered demand, as well as the structural reform carried out. In life services business, profit went up JPY 1 billion, mainly driven by ICT and media business. For your reference, the impact from the electricity and other energy cost increase was JPY 1.6 billion year-on-year. Now page six, please. This shows the change in operating revenue and operating profit since FY 2019 as of the second quarter. On top of the recovered demand in each business, thanks to the effect from the structural reforms during the COVID-19, the latest Q2 shows a recovery exceeding the pre-COVID levels. The next page shows changes by segment. Please refer to it at your leisure time. Now please go to page eight. Here now, I would like to explain our forecast for the full year.
First, the assumptions for the full year, FY 2023. At a high level, since COVID-19 was downgraded to Type 5 in May, we had a higher recovery above our assumption, and we still have this assumption. As for the energy price, it has stabilized more than we had assumed back in August, and we are assuming it will come to level almost the same as the last year. Please refer to the information described in the middle section for details of each business with major KPIs. Tokyu Railways raised its August forecast due to a stronger recovery in the number of passengers carried and the revenue from fares based on the trend we had up until the first half. As for power costs, which we had expected a big increase, we revised it down to the same level of last year.
I appreciate if you could refer to the information for other businesses at your leisure time. page nine, please. This shows the main points in forecast for FY 2023. As of November, full year forecast shows operating revenue, JPY 1,039.5 billion, operating profit, JPY 85 billion, profit attributable to owners of parent, JPY 54 billion. Compared to the August forecast, reflecting the recovered demand for Tokyu Railways and other transportation operations, as well as the declined energy cost, operating profit is forecasted to be JPY 85 billion, up JPY 7 billion. Profit attributable to owners of the parent is JPY 54 billion, up JPY 9 billion. page 11, please. Major points for the forecast by segment. Here, allow me to make a comparison to the forecast we made back in August.
Transportation business, taking into account the increased fares driven by the recovered demand in Tokyu Railways as well as the declined power cost, we revised operating profit up to JPY 7 billion from the August forecast. As for other businesses, in light of the trend we had up until the end of the first half, we made the revision. Energy costs helped us to push our forecast by JPY 3.5 billion from the August number. please go to page 12. Here, I would like to explain the changes in the main indicators for three-year medium-term management plan. As I have explained earlier For FY 2023, we have revised up our initial guideline, and we do expect all the indicators are to be improved. page 13. Next, use of funds and financial strategy, there are no changes from the past explanation. page 14, please. Next, about shareholder returns.
Reflecting an upward revision of the performance, the year-end dividend will be JPY 10, up JPY 2.5 per share. We plan to have annual dividend of JPY 17.5 per share. In June this year, we repurchased treasury stocks together with the issuance of convertible bonds about JPY 30 billion for 16.52 million stocks. Believing that it is important to consider the number of shares issued going forward, we will take into account fund strengths and the profit level, and we intend to be flexible in considering the treasury stocks buybacks so that we can improve our capital efficiency. Please go up to page 17. Here, I will explain the situations in each business. First, railway business.
As for the status of Tokyu Shin-Yokohama Line, which opened in March this year, as shown in the middle, in regard to the number of passengers carried has reached about 70% vis-à-vis the plan. The number of non-commuter passengers is high due to the route switch of Shinkansen users and demand for events near Shin-Yokohama Station. This is right on the plan, but the number of the commuters has not reached the plan yet. We believe it will take some time to improve the public awareness and enjoy a stable demand. Along with the position to improve convenience, such as timetable revisions, we continue our efforts to generate demand for commuter train passes. Next page, please. This is about the Tokyu Kabukicho Tower we opened in April this year. We are operating the hotels and opening main with two brands.
We are having a smooth start with the HOTEL GROOVE SHINJUKU . The number of visitors to the tower has surpassed three million, creating lots of buzz, and it has become a new symbol for Kabukicho. We continue our efforts to increase the value of the facilities and the community while leveraging attractive entertainment. Page 19, please. Here, I would like to explain our ongoing development projects. First, Shibuya area. As for the projects underway described in the top layer have no change since the last time, and we are progressing according to the plan. The bottom describes the status and the timeline for the new projects. Though I cannot share specific details, together with the ongoing projects, the total investment we are considering now is at the level of JPY 500 billion, with the total floor area being about 800,000 sq m. Page 20, please.
This shows the major development projects in the areas served by the Tokyu lines. We are making steady progress in the redevelopment project in the Shin-Tsunashima Square. Besides it, we are planning to develop several buildings in the areas along the Tokyu lines. We expect to invest about JPY 200 billion. We expect to realize higher usage of the real estate assets, which will increase the number of residents along the line, which will help to increase revenue not only from real estate, but from railways, buses, retail operations, lifestyle services. We would like to maximize the best possible effect from our cyclical reinvestments. We continue to be engaged in our initiatives to further increase the value of the Shibuya line area. Page 21, please.
In September, the percentage of foreign guests at the hotels in the Shibuya area reached 74.5%. We made steady efforts to increase our inbound demand. As a result, ADR has risen up greatly, reaching the record high level. Under such circumstances, we are now engaged in hotel renovations so that we could improve customer satisfaction by offering better services fit for the price. Going forward, we intend to further improve our service quality and continue to improve our profitability firmly. Page 22, please. I would like to update on our latest ESG initiatives. On the environment, we finished calculating our CO2 emissions during FY 2022. We achieved 38% reduction compared with FY 2019. All the Tokyu railway lines are now using power that is 100% derived from renewable energy, and this contributed to the result.
Going forward, we expect to see recoveries of economic activities in the post-COVID-19, and we do expect energy usage would further increase together with the business growth. In order to achieve our target for FY 2030, we will continue to advance our efforts for energy conservation and advance our usage of renewable energy. Now please go up to page 24. Here, now I would like to expand on our to be ideas. Tokyu Corporation engages in urban and community development and keeps urban communities running. We have a unique business model combining railways, buses, real estates, and urban infrastructure, retail, and life services. We will work on the following three themes to further advance our unique Tokyu style urban development efforts. First, we aim at increasing the population and income along the Tokyu lines. This population, besides the residents, will also aim at non-residents and related population.
We will seek to expand and improve the facilities and services in the areas served by Tokyu lines, and we will add value to these areas, realize the best cities in Japan, and if I may say, in the world, people wish to live in, work in, and visit. Not only to attract population, we also would like to create employment opportunities in the areas served by our lines, and income generated there would be consumed inside the areas served by our lines. We would like to develop such a mechanism. The second point is our large-scale redevelopment projects. The recent sharp rise in construction costs poses a risk to the profitability of our projects. If competing projects are canceled or delayed, it will be a tailwind for our existing leasing portfolio.
We'll be conscious of controlling development costs and the schedules to secure development profits and turn a crisis into an opportunity. We'll also promote cyclical reinvestment and increase the competitiveness of the areas served by the Tokyu lines and realize contrarian investment, though I will explain this later. Cyclical reinvestment is not just limited to the simply accelerating the collection of the funds, but also it involves on and off an upgrading of real estate and various services along the Tokyu lines since the rail lines are the target of reinvestment. This would make us more competitive compared with other lines and other areas. The third is to improve the profitability of the existing businesses. This can be referred to as internal growth. Here, we would like to increase the value of each business through additional investment from customers' perspectives.
We will achieve returns above the average through growth in each business and collaboration between businesses. Of course, it goes without saying that we'll grow our fee business based on the existing businesses, so that without increasing investment burden, we can improve business returns. Tokyu's DNA are supporting a Tokyu-style urban and community, which has been nurtured by our constant efforts to provide creative values since our founding. We will continue to provide our solutions to social issues and everyday life issues from creative perspectives of ours. Please go to page 25. Here, I will expand on the positioning and characteristics of our businesses. Businesses like transportation, railways and buses, and real estate and urban development will be used to develop comfortable urban areas and communities to create stable population base. This is our core businesses. In contrast, we have life services and hotels and resort businesses.
They are our added value creation business to our real estate and transportation infrastructure. This will further expand businesses by increasing the population involved with the areas. Transportation and real estate businesses have heavy capital invested, giving us stable returns. In contrast, life services and hotel and resort, though capital invested being somewhat limited, volatility tends to be somewhat higher compared with transportation. We believe we should aim at higher returns in this business. Page 26, please. Based on the way we view our businesses, and as I explained earlier, I would like to explain our approach to the scale of assets or return that we should aim at. The diagram in the middle shows ROA and asset size for each business. The vertical axis represents the level of ROA for each business, and the horizontal axis represents invested capital.
Transportation and real estate leasing and management have large assets and are expected to generate stable returns, but in return, their ROA is relatively low. On the other hand, hotel and resort and the life services businesses are superior in terms of ROA because they operate with fewer assets and require less investment. These businesses have a much lower return on sales than the core businesses, but their asset efficiency is rather good. In particular, in many cases, life services and hotel and resort are operated within the properties we have developed. Inter-business collaboration enables us to maximize earnings from the properties we developed. In addition to this, we can expect to improve ROA on a consolidated basis by combining asset-efficient real estate sales, such as the sale of interest in the development businesses.
Based on the characteristics of our businesses, we hope to increase in asset efficiency and RON on a consolidated basis by growing each business and accumulate additional cash flow through inter-business collaboration. Now, page 27, please. As shown on the previous page, we are developing multiple businesses in various areas through a collaboration among businesses. This is how we create a business value in each area. Going forward, besides the business segment we are currently showing to you, we need to add another perspective of area segment. We need to pay more attention to asset scale as well as income expenditure and efficiency in each area segment. We'd like to now acquire even better business opportunities by digging deeper into each area. Page 28, please. Lastly, now I'd like to explain what we would like to achieve by promoting cyclical reinvestment.
Until now, our development projects have mainly focused on recovering investment through leasing income. In the future, we will also now strengthen the recovery of funds through the sale of a portion of our equity, thereby accelerating reinvestment by speeding up the turnover of funds. We intend to now further promote cyclical reinvestment. Of course, we'll also now secure opportunities for fee business by retaining a certain amount of equity. The main feature of our company is to invest the recovered funds into Shibuya and the areas along the Tokyu lines, again, in a cumulative manner. With the concentrated reinvestment in the Shibuya and the areas along Tokyu lines, we'll renew real estate and facilities, thereby improving the convenience of the town while pursuing safety and security against disaster risks and others.
This will increase the attractiveness and the competitiveness of the areas along our Tokyu lines as towns where people want to live, visit, and work. This will create a virtuous cycle of area growth by attracting more people and creative businesses and facilities to the areas along our Tokyu lines. Another feature of this virtuous cycle is that it maximizes the return on each of our businesses along the Tokyu lines. As the population increases and the value of the areas along the Tokyu lines, the number of users of our transportation system will increase, and the return of funds from our retail, entertainment, and hotel business in the real estate will have developed, will also accelerate. Of course, we can also expect a decrease in the vacancy rate of the office floors. This will further accelerate investment in the Shibuya area along our Tokyu lines.
In this way, our cyclical reinvestment is our unique and highly leveraged business model that creates a sustainable competitive advantage in the areas along the Tokyu lines, enhances the value of our portfolio, and generates additional cash flow through a wide range of business linkages to further accelerate the pace of growth. This is our unique and highly leveraged business model. We intend to now further refine this model to further enhance the value of the areas along Tokyu lines and link this to our corporate value. This concludes my explanation.