Safety Management System■ Basic Safety Policy and Objectives■ Initiatives to Reinforce the Safety Management System (Using the PDCA Cycle)

Hankyu Corporation and Hanshin Electric Railway put the highest priority on ensuring safe operations in our business activities. As described

By applying our safety management system (PDCA cycle) to a range of safety initiatives, we are aiming to create a virtuous cycle of improvement

below, we have formulated a basic policy on safety and are doing whatever we can to prevent accidents, based on the goal of maintaining zero

based on even higher safety goals.

accidents for which we bear responsibility.

Outline of Safety Management System

Hankyu Corporation Safety Policy (Code of Conduct)

Hanshin Electric Railway Safety Policy

The president and directors of the Company are required to establish a framework that ensures all business activities place the highest priority on safety.
Utilising the Company’s civil engineering facilities, electrical facilities, rollingstock, and the expertise of its employees, the Company’s basic policy for ensuring safety in transport and other operations shall be determined in accordancewith the following.

Maximum priority on safety
The president, directors and employees shall do whatever they can to ensure safety of operations, based on
the understanding that putting the highest priority on
ensuring safety is the mission of railway businesses.

Code of Conduct for Safe Transport Operations*• Ensure safe transport• Comply with all relevant laws and regulations• Be fully aware of operating conditions and ensure equipment is safe
• Enforce check procedures and put the highest priority on safety• Place priority on human life
• Provide information accurately and rapidly• Continue making improvements and reforms

Creation of safety control plans
and systems

Safety management implementation and operation
1 Awareness raising and drills

Formulation of annual plans, etc.
(Safety policy for each fiscal year withinitiatives targeting specific areas)

Compliance with laws and regulations
The Company shall comply with all laws and regulations
related to safety and apply them rigorously and sincerely
in its operations.
Maintenance of safety management systems
The Company shall implement continuous verification
procedures to ensure safety management systems areoperating appropriately.

2 Equipment initiatives and inspections

Plan

Do

* Only titles for Code of Conduct items have been shown due to space restrictions. The full Code of Conduct
provides detailed explanations for each item.

Safety management
regulations■ Transport Safety Organisations
Organisation Chart (Hankyu)

Organisation Chart (Hanshin)
The Railway Safety Council has
been established as an organisation that specialises in promoting
safety management.

President
Directors

President
Directors

Head of Urban
Transportation Business(Chief Safety Manager:
director)

Define policies to adhere to inbusiness operations to ensure
safe transport operations, aswell as specific initiatives, management systems and methods
for the implementation of thesepolicies

Urban Transportation
Business

Act

Railway Safety Council
Deputy Head of Urban
Transportation Business

Manager, Urban
Manager,Manager,
Transportation Planning
Transport Division
Technical Division(Head of Investment(Chief Train Operations (Chief Civil Engineeringand Financing Team)Manager)
Facilities Manager)

Manager,
Kobe Line Operations

Manager,
Takarazuka Line Operations

Manager,
Technical Division(Chief Electrical
Facilities Manager)

Manager,
Technical Division(Chief Rolling StockManager)

Chief Train Operations Manager*(Deputy Head of Urban
Transportation Business)

Manager,
Transport Division

Manager,
Kyoto Line Operations

Deputy Operations
Deputy Operations
Deputy Operations
ManagerManagerManager(Crew Training Manager) (Crew Training Manager) (Crew Training Manager)

Position

Chief Crew Training Manager(Head, East Rolling Stock Yard)(Head, West Rolling Stock Yard)

Chief Safety Manager(Head of Urban
Transportation Business)

Manger,Electrical Division

Manager,
Rolling Stock
Division

Improvements (proposals for improvements)
and revisions to safety management plans
and systems

Manager,Engineering
Division*Previously, the manager of the Transport Division served as
the Chief Train Operations Manager. Following theestablishment of the Deputy Head of the Urban
Transportation Business, however, the Deputy Head serves
as the Chief Train Operations Manager from fiscal 2014
onward.

Role

President
Chief Safety Manager(Head of Urban Transportation Business)
Chief Train Operations Manager(Deputy Head of Urban Transportation Business*)

Ultimate responsibility for ensuring transport safety

Manager, Transport Division

Assists in train operations under the direction of the Chief Train Operations Manager

Chief Crew Training Manager(Hankyu: Deputy Operations Managers of each line;
Hanshin: Heads of East and West Rolling Stock Yards)

Responsible for ensuring all crew are properly qualified (appropriate qualifications, knowledge
and skills), under the direction of the Chief Train Operations Manager

Other Safety Managers

Individuals in each division responsible for ensuring facilities under their management do not
act as an obstacle to transport safety, under the direction of the Chief Safety Manager

Responsible for overseeing all activities related to ensuring transport safety
Responsible for managing all aspects of train operations, under the direction of the Chief Safety
Manager* In the case of Hankyu Corporation, this role is filled by the Manager or Deputy Manager of the Transport Division.

Continuous improvement

Check
Safety management and operational checks
Internal audits
Evaluation of transport safety management by MLIT

Revisions to the Railway Business Law in October 2006 required railway companies to create new safety management systems dedicated totransport safety. Under our new safety management system, we are targeting even higher levels of safety by applying the PDCA cycle, ensuring
compliance with all related laws and regulations, conducting operations that place the highest priority on safety, and fostering greater awarenessof safety issues among employees from directors down.
From the next page, we explain in more detail points    1 —    
2 of “Do = safety management implementation and operation” in the above

diagram.

1 Awareness Raising and Drills
Activities to Raise Safety Awareness in Hankyu Corporation

Activities to Raise Safety Awareness at Hanshin Electric Railway■ On-site Inspections Undertaken by the President and Chief Safety Manager■ Create a Corporate Culture That Prioritises Safety and Rigorously Ensure Compliance

On-site inspections undertaken by the President and Chief Safety Manager (Head of Urban Transportation Business) verified actual conditions

Inspections, lectures and visits by the President, Chief Safety Manager

and deepened communication through direct dialog with front-line employees.

(Head of Urban Transportation Business) and managers further
improve employee safety awareness. We are also rigorously ensuring
compliance.

■ Information Sharing through the Railway Safety Council■ Management Area Meetings
Communication and cooperation among divisions regarding current
operations are indispensable for maintaining and improving thesafety of railway operations on site. For this reason, we held manage-

In principle, Hanshin Electric Railway holds meetings of its Railway

incidents, and potential accidents and near accidents. Based on the

Safety Council twice every month. The Council is chaired by the head

results of this analysis, it formulates countermeasures to preventof the Urban Transportation Business, and its members are madereoccurrence, and issues instructions to the Railway Safety Liaison

up of other managers from within this business. The Council hears

Team* and related divisions.

reports from relevant managers regarding accidents, safety incidents,* Railway Safety Liaison Team: Comprising managers from each railway business division, this teamis responsible for sharing information about operations, accidents, and issues in each division, anddiscusses and reviews causes and measures to prevent recurrence.

and potential accidents and near accidents, and shares information
about these reports. It analyses the causes of these accidents, safety

ment area meetings that gather front-line personnel working at train
operations, civil engineering facilities, electrical facilities and rollingstock at Nishiomiya, Jyuso and Shojaku (which are integrated railway
facilities) to exchange opinions and share information on safety.

■ Safety Lectures and Seminars
We work to improve employee safety awareness by inviting outside
lecturers to hold lectures and seminars on transportation safety.

Main content
Safety lecture: A lecture on methods for analysing the causes ofaccident given by the Railway Technical Research Institute■ Ensuring the Information Sharing System Continues to Function Properlywith employees on a daily basis, with details fed back to the front

Presentation and award received at the Train Operation
Research Presentationlines when the causes of accidents, safety incidents, and potential

At the 33rd Train Operation Research Presentation hosted by theaccidents and near accidents are identified and countermeasures

Japan Train Operation Association in November 2012, we announced

developed.

our initiative entitled: “Safety Ethos for Locking and Unlocking

Hanshin Electric Railway endeavours to ensure active communication

For incidents that were caused by human error, each division andOperations and the Recording of 468 Days without an Accident.” At

the Railway Safety Liaison Team assess the effectiveness of measuresthis presentation, we announced and received an incentive award

to prevent any recurrence and report where necessary to the Railway

for initiatives to identify methods to eliminate human error when

Safety Council. This approach has given the Company a greater capa-

attaching and detaching rolling stock at Amagasaki Station along

bility to assess the effectiveness of countermeasures.

with examples of successful preventive measures.

2 Equipment Initiatives and Inspections
Hankyu Corporation and Hanshin Electric Railway both take a wide range of steps to improve safety using equipment and infrastructure. Below, we

The Content of Drills Undertaken
by Hankyu Corporation and Hanshin Electric Railway

explain some of the main initiatives.

■ Overpass and Underground Construction Work
Hankyu Corporation and Hanshin Electric Railway both conduct specific training programmes in their train operation, civil engineering (workshop)
facility, electrical facility, and rolling stock divisions, as well as exercises to prepare for specific emergency situations. Both networks also hold theirown independent joint drills for emergencies where cooperation across business divisions is required.

■ Joint Drills: Hankyu Corporation

Both companies are pushing ahead with the construction of multiple

Grade separation (track ele-rail overpasses to reduce the number of level crossings and improvevation) works are currently under

traffic flow near train lines. Elevated or underground sections now

way on the Hankyu Kyoto Lineaccount for large portions of Hanshin Electric Railway’s Hanshin Main

near Awaji and Rakusaiguchi sta-

Line (87%) and its Hanshin Namba Line (90%), including the new exten-

tions, and on the Hanshin Mainsion from Nishikujo Station to Osaka-Namba Station. All of Kobe Rapid

Line between Sumiyoshi andTransit Railway Line is in underground. This work to raise the tracks has

Ashiya and between Koshien

led to a marked drop in the number of level-crossing accidents.

and Mukogawa.

Viaduct construction site

■ Controlling Rail Traffic with Automatic Signal, Point and Signage Systems
Schematic exercise (held August 2012)
Communication drills assuming the occurrence of an earthquake and tsunami originating in the Nankai TroughPractical emergency drill (held December 2012)
Emergency evacuation guidance and restoration drill assuming a train fire and trackflooding on a Kyoto subway line

■ Held Tsunami Drill
In May and December 2012, Hanshin Electric Railway held tsunami

methods from trains, the safety of the evacuation route and the time

drills using actual rolling stock in conjunction with each division ofrequired to evacuate. Upon completing tsunami countermeasures in

the Urban Transportation Business on the Hanshin Namba Line’s

December that included installing emergency ladders on bridges, weShinyodogawa River Bridge. Before undertaking tsunami coun-

held tsunami evacuation drills assuming evacuation guidance is given

termeasures in May, we conducted drills to verify passenger exit

to passengers exiting a train stopped on one of those bridges.

Both companies utilise computer-based systems to control rail traf-

on preprogrammed information for all trains and stations (such as

fic. Hankyu Corporation uses the Total Traffic Control (TTC) system,

departure times, line numbers, destinations, and train types). The

while Hanshin Electric Railway uses the Programmed Traffic Control

computers at the heart of these systems (central control systems, PTC(PTC) system. The companies’ TTC and PTC centres automaticallycomputers) are systemised with multiple backups and inbuilt redun-

control signals, points, and platform signs and announcements based

dancy to ensure a high level of reliability in the event of a problem.

■ Upgrading Automatic Train Stopping Equipment
Automatic Train Stop (ATS) equipment automatically slows down orstops trains when drivers fail to notice or respond to, or misinterpretsignals or signalled speed limits. Hankyu Corporation and Hanshin
Electric Railway both use continuous speed-checking type ATS systems on all their lines*, including branch lines, ensuring a high level

Continuous speed-checking type ATS system:
Hankyu Corporation’s continuous speed-checking ATS system
Under

115km/hUnder

Train speed

70km/hUnder

50km/hUnderof safety.
* B etween Sakuragawa and Osaka-Namba stations on the Hanshin Namba Line, Hanshin Electric
Railway relies on an onboard control-point continuous speed-checking type ATS system that
Kintetsu Corporation employs.

30km/hUnder

Proceedsignal20km/hCautionsignalStopsignalIn an effort to further improve safety, Hankyu Corporation has
Verification drills (held May 2012)

Tsunami evacuation drill(held December 2012)

Distance marker

Exit ladderbeen adding a new pattern control system to its existing ATS equip-

Control point

Control point

ment. This new control system is aimed at preventing overrun intolevel crossings, failure to stop at designated stations, and collisions inwhich a train runs into the end block of lines. This system is already in■ Held Joint Drills at the Daimotsu Training Centre

operation on rail lines.

In October 2012, Hanshin Electric Railway conducted drills jointly withtrain collision has occurred during a train crossing inspection being

the Electrical and Transport divisions assuming that an occupational

performed by an Electrical Division staff.

accident has occurred. The Daimotsu Training Centre was opened

Both companies are also working to improve safety by installing
ATS equipment on sharp curves and branches in lines to prevent
derailments caused by excessive speed.

in fiscal 2010 as a general-purpose technical training facility that was

In March 2011, Hankyu Corporation finished compilation of inde-upgraded in fiscal 2012 to improve expertise and skills regarding

pendent safety standards stricter than those of the Ministry of Land,

electric power facilities and track maintenance and transfer those

Infrastructure, Transport and Tourism. In May 2011, Hanshin Electric

skills to subordinates. The Daimotsu Training Centre conducted

Railway completed installation of Automatic Train Stop (ATS) facilities

drills on providing first aid to accident victims and accident-related

at all 28 junctions on its network.

notifications by Electrical Division and on-board staff assuming a

Hankyu Corporation is planning to introduce a safety system

Obstruction signal

ATS pickup

ATS indicator in driver’s cab

Speedometer in driver’s cab

enabling automatic braking of rolling stock using ATS, even if theand June 2012. This system is already being used at the Nishinomiya

driver misses a ‘stop’ shunting signal in a train depot. This measure is

depot and installation work is currently underway at the Shojaku andintended to avoid damage to points if a train jumps a ‘stop’ light, as

Katsura depots.

happened at Nishinomiya depot on the Kobe Line in November 2011

■ Initiatives to Improve Platform Safety
At Hankyu Corporation and Hanshin Electric Railway, the following measures prevent objects and people falling onto the track from the platform,
and forestall accidents:(1) Installation of yellow warning-line tiles on platform(3) Installation of emergency alert devices

To stop visually-impaired and other passengers from falling off the

When somebody or something falls onto the track, the event is

platform, we have installed yellow warning-line tiles next to the tactile

detected by special mats under the platform edge, or an emergency

tiles (with bumps that can be felt through shoe soles) so that a blindstop button on the platform can be pressed. These set off alarm

passenger can tell which side of the yellow warning-line he or she is.

indicators and an emergency buzzer for crews and station staff,

Both Hankyu Corporation and Hanshin Electric Railway have

preventing serious accidents. On Hanshin lines, we have completed

already completed the installation of yellow warning-line tiles at all
stations in fiscal 2013.

installation of emergency stop buttons at all stations.
We are currently taking measures to further improve safety on
Hankyu lines through the installation of platform emergency stop
buttons that work in tandem with the ATS system installed at all
stations.

Yellow warning-line tile attached to a platform that conforms
to standards established by the Japan Industrial Standards
Committee

Emergency stop buttons(Hanshin)In addition, both companies installed shelters below platforms(2) Platform widening

and steps to climb back onto platforms.

At Mukogawa Station on the Hanshin Main Line (up-line to Osaka),
we have broadened the platform by about 1.5m to alleviate rush-hour
crowding and enhance safety.

1.5m

Mukogawa Station up-line platform

Platform evacuation steps(The dotted line to left shows a bar-type step and the one on
the right indicates a ladder-type step)Other Risks and Countermeasures
The following is the Group’s perspective provided in response to questions received from our investors in relation to the risks attendant on ourbusiness. Information about future events that appears in this report was determined by the Group to be current as of 31st March 2013 and is notintended to negate the possibility of these risks impacting the business performance, financial position and other aspects of operations of the Group.

Economic Environment-related Risks

Business-related Risks

Changes in the Financial Market

Demographic Change

Natural Disasters and Acts of Terrorism

Despite increases in the interest rate set by the Bank of Japanand the difficulties associated with market-based financing
accompanying changes in financial markets, the Group limits
its exposure to risk associated with interest rate increases byprioritising the undertaking of long-term loans with fixed interest rates. In addition, the Group secures financing by working
to establish back-up lines based on commitment lines set up
with correspondent financial institutions.
		 Nevertheless, in the event that financial markets were tochange dramatically, the business performance and financial
position of the Group could be adversely affected.

Due to the aging population, it is expected that capital
expenditure on safety measures and construction aimed atmaking facilities barrier-free will increase. At the same time,
due to future population decline caused by the falling birthrate, it is possible that transportation demand (for the Group’s
railways, buses and taxis) will recede, and that demand in otherbusinesses may also decline.
		 In order to respond to this challenge, the Group is working
with government and educational institutions on community-building initiatives with a focus on peace of mind, educationand cultural enrichment. By doing so, we are working toenhance the appeal of the areas served by our stations so as
to ensure that our railway lines enjoy the patronage of large
numbers of people.

The Group’s businesses and transportation network infrastructure could be significantly damaged by natural disasters suchas earthquakes, typhoons and floods or acts of terrorism.
		 Hankyu Corporation and Hanshin Electric Railway Co.,
Ltd. have installed rain, wind and river water gauges in theareas along our railway lines for collecting observation data.
We also use real-time information provided by meteorologicalobservatories to ensure the safe operation of our trains. If an
earthquake of JMA seismic intensity 4 or above is detected bya seismograph or predicted by an earthquake early warning
system, all trains that operate in the zone in question will
immediately prepare for emergency stopping. For possible
acts of terrorism, or where suspicious items or persons are
identified or damage has occurred, we have risk-graded management response systems.
		 We have also developed emergency response systems
for minimising the social impact in the unlikely event of anincident which causes long-term disruption to transit services
or results in a great number of casualties.

Foreign Currency Market Fluctuations
The Group assumes that sudden fluctuations in foreign
currency markets will occur as economic conditions change.
However, foreign exchange rate contracts, currency swap contracts and currency option contracts are employed to avoid
the exchange rate fluctuation risks attendant on some foreign
currency-denominated assets and liabilities.
		 Nevertheless, although foreign currency market fluctuation risk is mitigated through the use of foreign currency
exchange-related derivative transactions, in the event thatsudden fluctuations exceed assumptions, the business performance and financial position of the Group could be adversely
affected.
		 The Group’s overseas sales constitute less than 10% of its
consolidated operating revenues.

Safety Management
In the Group’s core railway business, our passengers would
suffer greatly if an accident were to occur. We are keenly awareof the responsibility entrusted to us for our passengers’ lives.
Therefore, the cornerstone of our business is placing theutmost priority on ensuring the safety of customers.
		 Accordingly, the Group has upgraded all aspects of its
safety capabilities in the conviction that putting passengers
first and prioritising safety come above all else. We are engaged
in a wide variety of endeavours for ensuring that we go one
step further to offer our passengers even safer transportation.

Risks Associated with Power Supply
Shortages and Electric Utility Rates
In the event of a shortage of power supply, train and otherservices may be disrupted. In addition, increases in electricutility rates are a factor driving up power and other costs. In
order to curb power usage to the maximum extent possible
while minimising its impact on earnings and expenses, theGroup is undertaking such measures as gradually introducing
energy-saving equipment and strengthening cost reduction
awareness among employees.

Infectious Disease Outbreaks andEpidemics
Group businesses could be significantly affected if economic
activities were restricted or customers refrained from goingout due to an outbreak or epidemic of an infectious diseasesuch as SARS (Severe Acute Respiratory System) or H1N1 flu.
		 In response to the spread of infectious diseases such as
H1N1 flu, the Group has developed a Business Continuity Plan
(BCP) for each division, under the direction of core companies.
During the H1N1 outbreak in 2009 and 2010, ongoing surveys
into infection rates among employees and their families ineach division gave us a good idea of the scale of risk, minimising the impact of H1N1 on our business. Also, in the railway
business, which is a particularly important part of the social
infrastructure, we drew up plans in advance to minimise theimpact of any explosive spread of the disease, including multiple schedules assuming a shortage of railway staff.