Group Management Philosophy

MissionWhat we try to achieve
By delivering “Safety and Comfort” and “Dreams and Excitement,”
we create satisfaction among our customers and contribute to society.

Group Management Philosophy

ValuesWhat is important to us

Customers First
Everything we do
is for the customer.
That’s where it all starts.

Sincerity
Gain customers’ confidenceby always being sincere.

Foresight & Creativity
With our pioneer spirit
and flexible thinking,we create a new value.

Respect for People
Everyone is absolutely invaluable
to the Group.

Corporate Social Responsibility (CSR)

We believe contributing to local communities and preserving the environment are social responsibilities that it is incumbent
upon us to fulfil and which are essential for our medium-to-long-term development. Therefore, the two pillars of our CSR
activities are social contribution activities, which develop towns and cities in partnership with local ­communities, and­environmental preservation activities promoting environment-friendly business activities.

Social Contribution
Activities

Basic Policy
We intend to promote the creation of towns
and cities along our railway lines that people
will truly want to live in.

Environmental
Preservation
Activities

Basic Concept
Mindful that global environmental preservation is a task facing all mankind, the Hankyu
Hanshin Holdings Group works for a sustainable society through environmental activities
aimed at handing down a sounder global andhuman environment to the next generation.

At a Glance

Major Operating Companies

Urban Transportation

Fiscal 2016 Results¥

Operating Income¥

Segment Assets

¥

794.3

billion (YoY +2.0 %)Revenues fromOperations

¥

220.9

billion (YoY +7.0 %)Operating Income¥

Segment Assets¥

Revenues fromOperations¥

Operating Income¥

Segment Assets¥

Revenues fromOperations¥

Operating Income¥

Segment Assets

¥

65.2

billion (YoY – 4.1%)

Revenues fromOperations

¥

36.7

billion (YoY –7.0 %)Operating Income¥

Segment Assets

¥

39.9

billion (YoY –12.9 %)Revenues fromOperations

¥

68.0

billion (YoY +7.9 %)Operating Income¥

Segment Assets¥

Hankyu Corporation

阪神電気鉄道Hanshin Electric Railway

Real EstateEntertainment andCommunications

TravelHankyu Travel International

International Transportation
Hankyu Hanshin Express

Hotels239.5

Revenues fromOperations

Hankyu Hanshin Hotels

41.3

49.9

billion (YoY +2.6 %)billion (YoY +7.0 %)billion (YoY +34.1%)

1,022.6
112.5
15.3

0.7

1.8

3.3

billion (YoY – 0.1%)

billion (YoY +2.1%)

142.7
30.5

billion (YoY +2.9 %)billion (YoY – 0.4 %)billion (YoY – 4.6 %)billion (YoY – 44.5%)

billion (YoY – 41.4 %)billion (YoY +171.2%)

82.8

billion (YoY +0.7%)

At a Glance% of Revenues from Operations,Operating Income, and Segment Assets

32.1

36.5

36.4

Nature of BusinessThis segment comprises railway operations (with Hankyu Corporation operating the Kobe,
Takarazuka, and Kyoto lines out of Osaka-Umeda and Hanshin Electric Railway lines directly
linking Kobe with Osaka’s major northern and southern terminals, Osaka-Umeda, and Namba).
Together, the Hankyu and Hanshin network, combined with other lines, and bus, taxi, andother urban transportation services form a single large-scale network in the Kansai area, centred on the cities of Kyoto, Osaka, and Kobe.
Total length of lines operated:
Hankyu Corporation: 143.6 km

Hanshin Electric Railway: 48.9 km(Including tier 2 railway operators)

The Real Estate segment derives its core revenue from leasing and management of c­ ommercial
facilities and office buildings and its condominium business. Its attractive business portfolio
includes rental properties located mainly in the Umeda area and along the Group’s rail lines,
such as Umeda Hankyu Building, Hankyu Sanban Gai Shopping Centre, HERBIS OSAKA, HERBIS
ENT, GRAND FRONT OSAKA, Hankyu Nishinomiya Gardens, and the highly regarded Geo­condominium brand in the Kansai and Tokyo metropolitan areas. This segment is also ­exploringoverseas markets, specifically building and owning logistics centres and developing condominiums in Southeast Asia.

29.6
44.1

46.8

Since its establishment in 1948, while meeting the diversified needs of customers throughalways taking their perspective, Hankyu Travel International has sold its products via various
media through its five brands. They are the Trapics brand that provides enhanced content at areasonable price, the Crystal Heart brand, the Hanshin Aviation Friends’ Tour brand for relaxed
travel, the e-very brand for self-planning travel, and the Royal Collection brand for luxurious
travel. This company provides safe, comfortable travel that offer customers inspiration anddreams, ranging from package tours through to original plans for individual customers, travel
to Japan, and business travel services.

15.1

In 1948, as Japan’s first International Air Transport Association (IATA) certified freight agency,
Hankyu Hanshin Express (Hankyu Corporation at that time) began international airline freighttransportation operations. Since then, regardless of whether for imports or exports, it has been
providing fast and safe door-to-door international transportation services. As a pioneer in international logistics, it utilises the track record and experience it has cultivated in developing its
overseas business over many years and provides high-quality customised logistics services on a
one-stop basis and offers support for its customers with optimised supply chain management.

4.1
4.9

13.5
6.5

9.1
3.0

5.2

This segment offers a wide variety of live entertainment, centred on the sports business—thenationally popular and famous Hanshin Tigers professional baseball team and their homeground and high-school baseball mecca, Hanshin Koshien Stadium—and the stage revue
business, based on the hugely popular Takarazuka Revue, which delivers performances thatmove and inspire customers. In addition, this segment runs a wide range of businesses, suchas the broadcast and communications business and the information services business.

0.6
1.6
2.9

1.8
3.8

0.9

1.6

The Hankyu-Hanshin-Daiichi Hotel Group operates 45 hotels, consisting of 18 that are directly
managed and 27 belonging to chains operated by franchises. The group is one of Japan’s leading hotel chains with 9,948 guest rooms (as of 1st April 2016). As a hotel operator with many
directly managed hotels in the Tokyo metropolitan and Kansai areas—Japan’s two largest
markets—the group offers a wide range of hotel formats, from general-purpose “city hotels” to
new style hotels (with very limited function facilities). In addition to chain operations, it also
manages The Ritz-Carlton, Osaka, a venerable international luxury brand with which it hasformed an alliance.

Note: Figures for percentage of revenues from operations and operating income are calculated based on the simple aggregate amount (including intersegment transactions) of each segment.

Location of Our Business BaseThe Hankyu Hanshin Holdings Group’s business base is theKansai area, which has a population of approximately 20 million. This is second only to the Kanto area, centred on Tokyo.
Further, the Kansai area is one of Asia’s economic powerhouses. According to a Cabinet Office survey,* in the fiscal
year ended 31st March 2014 the Kansai area’s gross production reached US$792.6 billion, surpassing the combined grossdomestic product of Thailand and Malaysia.
* Cabinet Office, Report on Prefectural Accounts for the Fiscal Year Ended
31st March 2014

Hanshin area
Questionnaires about where local
people would prefer to live rank
the area as one of the most p­ opularresidential areas.

Tokyo

Tanigami

Kyoto
Kyoto
City

Hyogo

Shiga

Kobe City
Osaka City
Osaka

Nara

 reas of highA
population densities

Kobe Rapid Transit
Railway Line

o

k
yu
nK
shi Lineku
Ho ilwayRa

Hankyu Kobe Line

Shin-Kobe

Kobe
Sannomiya
Minatogawa
Shinkaichi

Motomachi

NishidaiWakayama

Osaka BayThe Group’s railway network links the Kansai area’s major cities:
Osaka-Umeda, Kobe, and Kyoto. By heightening customer satisfaction and transportation efficiency simultaneously, we haveestablished an unshakable presence in the Kansai area. Since
the earliest days of its railway operations, the Group has developed housing, entertainment facilities, and commercial facilities in the areas served by its lines. Further, thanks to efforts to
attract universities, almost 50 universities and colleges arelocated in the areas served by our lines. Easy access to the
Kansai area’s major cities and plentiful infrastructure for everyday life make our line-side areas* some of the most popularKansai International
AirportThe largest airport in westernJapan, this is the Kansai area’s
gateway to the world.

places to live in the region. Consequently, in the Kansai area,
high population densities differentiate these areas.
* Line-side areas refer to areas served by the Hankyu and Hanshin lines.

Kansai International
AirportN

Arashiyama

Kyoto
Prefecture

Kawaramachi
KatsuraHankyuArashiyama Line

Kyoto

Kyoto
Japan’s iconic tourism destination,
Kyoto welcomes 50 million visitorsfrom other parts of Japan andfrom overseas every year.

Nissei-chuo
Myokenguchi

Hyogo
Prefecture

Hankyu Kyoto Line
Nosé Electric
Railway Line

Osaka Prefecture
Hankyu Mino-o Line
Mino-oKawanishi-noseguchi
Kita-senri
Osaka Ishibashi
International
AirportHankyuTakarazuka
Line

KoyoenansenHankyu
Senri
Line

ink

Hankyu Itami
Itami Line

HankyuKoyo Line

Senri-chuo

Kita-Osaka Kyuko

HankyuImazu LineSh

Takarazuka

Esaka
ShukugawaNishinomiyakitaguchi

Tsukaguchi
ShinOsaka

Imazu
Imazu

Mukogawa

Daimotsu

Awaji

Juso

Tenjimbashisuji
6-chomeAmagasaki

Umeda

Kintetsu-Nara

Mukogawadanchimae

SubwaySakaisuji Line

Hanshin Main Line
Hanshin Mukogawa Line
Hanshin Namba Line

Osaka-Namba

Nara Prefecture

Kintetsu Nara LineUmeda
The Group’s most important base,the Umeda area, is the Kansai economic bloc’s hub and one of Japan’s
world-famous shopping and entertainment districts.

Hankyu Railway Network

Average number of passengers per day using stations ofprivate railway operators (non-JR) in fiscal 2016
1,134

Keio Shinjuku Station

758

Hankyu Umeda Station

545

Odakyu Shinjuku Station

492

Seibu Ikebukuro Station

483

Hanshin Umeda Station

165

Source: Prepared by the Group based on documents
released by respective companies

Takarazuka Line
(Takarazuka Line, Mino-o Line)

28.5 km

Kyoto Line

65.4 km

(Kyoto Line, Senri Line, Arashiyama Line)(Thousands of people)

Tokyu Shibuya Station

143.6 km

Kobe Line
46.9 km(Kobe Line, Imazu Line, Itami Line, Koyo Line)

Kobe Rapid Transit Railway LineHanshin Electric Railway Network

2.8 km

48.9 km

Hanshin Line
43.9 km	
(Hanshin Main Line, Hanshin Namba Line,
Mukogawa Line)
Kobe Rapid Transit Railway Line

5 km

5.0 kmBusiness Environment

Population of areas served by the Hankyu and Hanshin lines (1991 = 100)
106

103

100

97

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
(CY)

Due to the aging of society and a declining
birth rate, the Kansai area’s overall popu­
lation is decreasing gradually. Meanwhile, thepopulation is comparatively large in areas
served by the Hankyu and Hanshin lines, atestament to the image branding these areas
as popular places to live. In these areas, thepopulation has been trending upward sincebottoming in 1996, the year after the Great
Hanshin Earthquake.

Areas served by the Hankyu and Hanshin lines
Kansai area
Sources: Prepared by the Company based on data from “Local Economy Directory,” published by Toyo Keizai, Inc.,and “Basic Resident Register,” published by the Ministry of Internal Affairs and Communications.
Note: Definition of the areas served by the Hankyu and Hanshin lines is presented on the Contents page.

Population by age group along the Hankyu and Hanshin lines (Population Census of Japan)(Millions of people)
6

5.41

5.32

5.43
0.49

0.42

0.57

5.50

5.37

5.23

0.83

0.65

5.56
1.01

1.20

4

3.65

3.80

3.92

3.81

3.81

3.72

3.64

2

1.23

1.11

0.91

0.76

0.72

0.72

0.72

80

85

90

95

00

05

10

0

(CY)

According to the official Population Census ofJapan, although the population aged below
15 remains stable, the population aged between 15 and 64 is declining. The latter groupis the working-age population—the mainpurchasers of commuter passes.
Notes: Tallies do not add up to the total at the top foreach year as the age group is not known in manycases. Unknowns account for the difference.
Definition of the areas served by the Hankyu andHanshin lines is presented on the Contents page.

Young
Working age
Elderly
Source: Prepared by the Company based on data from “2010 Population Census of Japan,” published by the Ministry ofInternal Affairs and Communications.

Average vacancy rates at office buildings

The rapid appreciation of the yen has caused
increased uncertainty with regard to the outlook for corporate performance. Nevertheless,demand for office expansion and the integration of previously discrete offices remains
strong. In the Umeda area, the vacancy rateon 30th April 2016 was down more than 3
percentage points from a year earlier.

(%)
15

10

5

0

07

08

09

10

Osaka business areas (all)Umeda area
Source: Miki Shoji, “Office Data.”

11

12

13

14

15

16

Tokyo business areas (all)
(Comparison of average rents in April of respective years)

Average rents at office buildings

Solid demand for offices is driving an increase
in office rents in Tokyo. In Osaka businessareas and the Umeda area, however, rents
were relatively unchanged year on year. The
number of new large-scale buildings completed in Osaka City is expected to be limited
up until 2018, and rents are anticipated togradually increase going forward as a result.

(¥/3.3 m2)
25,00020,00015,00010,000
5,000
0

07

08

09

10

Osaka business areas (all)Umeda area
Source: Miki Shoji, “Office Data.”

11

12

13

14

15

16

Tokyo business areas (all)
(Comparison of average rents in April of respective years)

Business Environment

New supply of condominiums

The number of new condominiums suppliedin 2015 was down by roughly 10% year on
year in the Tokyo metropolitan area, although
there was a slight rise in the Kansai area. In theTokyo metropolitan area, supply was relatively
unchanged year on year within Tokyo itself,while supply decreased in the surrounding
areas. In the Kansai area, supply of large-scalecondominiums was brisk in central Osaka.

(Units)100,000
80,00074,46361,02160,00056,47843,73340,00030,14630,21920,00036,37644,53544,49945,602
24,691

13

22,744

19,784

21,716

20,21923,266

08

09

10

11

12

44,913

18,81440,44918,930

0

06

07

14

15 (CY)Tokyo metropolitan area
Kansai area
Source: Real Estate Economic Institute Co., Ltd., “National Condominium Market Trends.”

Condominium prices (Tokyo metropolitan and Kansai areas)(¥ million)

(¥ thousand/m2)

80

800

60

600

40

400

20

200

In 2015, average condominium prices reachedthe highest level seen in the past decade inboth the Tokyo metropolitan area and theKansai area. This rise was fuelled by higher
land prices as well as a spike in the costof building materials and labour and otherconstruction costs.

0

0

06

07

08

09

10

11

12

13

14

15 (CY)Tokyo metropolitan area (average)
Kansai area (average)
Tokyo metropolitan area (right axis)
Kansai area (right axis)
Source: Real Estate Economic Institute Co., Ltd., “National Condominium Market Trends.”

Consolidated air cargo originating in Japan(Thousand ton)
2,000

1,500

1,308

1,323

1,000

983

934

09

10

1,076

996

856

862

13

14

996

902

15

16 (FY)500

The deceleration of the yen depreciation
trend seen in the latter half of fiscal 2015 andthe sluggish growth of the Chinese economy
resulted in a year-on-year decrease of approximately 10% in international air cargo originating in Japan. Nevertheless, transportation
demand is expected to increase centred on
Asian markets over the medium term amidst
ongoing economic growth in these markets.

0

07

08

11

12

Source: Japan Aircargo Forwarders Association, “Airfreight Forwarding Results.”

Overseas visitors to Japan and Japanese travellers going overseas(Millions of people)
25
20

17.5

17.3

16.0

15

15.4

16.6

17.0

18.5

19.7
17.5

16.2
13.4

10
5

16.9

7.3

8.3

8.4

06

07

08

6.8

8.6
6.2

8.4

10.4

0

09

10

11

12

13

14

Overseas visitors to Japan
Japanese travellers going overseas
Source: Japan National Tourism Organization (JNTO), “Visitors Arrivals, Japanese Overseas Travellers.”

15 (CY)

In 2015, the number of overseas visitors toJapan exceeded 19.7 million, surpassing thenumber of outbound travellers from Japan for
the first time since 1970, more than 45 years
ago. In the midst of this increase, in March
2016 the Japanese government announced
its goal of increasing the annual number ofoverseas visitors to Japan to 40.0 million by
2020, which means effectively doubling thecurrent target. In this manner, the tourism
industry is becoming ever more important toeconomic policy.

Performance Highlights (Consolidated)

Key Financial Indicators (Graphs)
Revenues from operations(¥ billion)
900[813.6]

752.3

683.7

600

653.3

638.8

649.7

10

11

12

682.4

679.2

685.9

707.4

13

14

15

16(FY)

300

0

07

08

09

Operating income and operating income margin(¥ billion)

(%)

120

21

110.3
[94.8]

80

90.7[11.7]

12.1

77.8
11.4

87.9
70.1

15.6

14

13.7

13.5

12.9

11.4

10.1

10.7

40

73.8

64.7

94.0

91.8

7

0

0

07

08

Operating income

09

10

11

12

13

14

16(FY)

15

Operating income margin (right axis)

EBITDA
166.5[146.5]

145.2

135.3

133.2

09

10

120

127.1

133.5

145.1

149.2

150.1

13

14

15

Operating income was up 17.3%, or ¥16.3 billion, year on year, to ¥110.3 billion, setting a
new record for the third consecutive year
­primarily as a result of the aforementioned
increase in revenues from operations. This
increase offset decreases in income in theInternational Transportation Business, due
to the deceleration of the Chinese economy
and sluggish domestic logistics demand, as
well as in the Travel Business, due to difficulty
attracting customers as a result of international security concerns.

Operating income rose 17.3%, or ¥16.3 billion,
year on year, to ¥110.3 billion; depreciation
and amortisation increased 1.0%, or ¥0.6 billion, to ¥53.7 billion; and amortisation of
goodwill declined 13.7%, to ¥2.5 billion. As aresult, EBITDA reached a new record high of¥166.5 billion.

(¥ billion)
180

In fiscal 2016, revenues from operations increased 3.1%, or ¥21.5 billion, year on year, to¥707.4 billion. This increase was due in part tostrong performance in the Urban Transportation Business, particularly with regard to the
Hankyu and Hanshin lines in railway oper­
ations, driven by a rise in the number of­overseas visitors to Japan. This rise in overseas
visitors also contributed to higher hotel occupancy rates and daily rates in the Hotels­Business. In addition, one-time revenue fromsales of land for facilities in the Real EstateBusiness was recorded.

60

0

07

08

11

12

(FY)

16

Net income attributable to owners of the parent and ROE(¥ billion)

(%)

80

16

70.0
60

12

54.2
[40.5]

40

39.3

[8.4]
20.6

20

0.6
07

08

8

8.6

8.0

7.4

18.1
3.8

4.4
10.8

0

39.7

7.9

10.3

46.4

4

2.3

0.1
09

10

Net income attributable to owners of the parent

0

11

12

13

14

15

16

(FY)

ROE (right axis)

Note: From the second quarter of fiscal 2007, consolidated results of Hanshin Electric Railway Co., Ltd., are included as aresult of management integration in the scope of consolidation of the Group. Figures in [ ] are calculated assuming the management integration was executed at the beginning of the fiscal year.

Total income taxes were up from fiscal 2015,
but higher income before income taxes
caused net income attributable to owners of
the parent to increase 29.1%, or ¥15.8 billion,
year on year, breaking the previous record
for the fifth consecutive year. As a result, ROE
increased 1.7 percentage points, to 10.3%,
exceeding 10% for the first time since theCompany’s founding.

Performance Highlights (Consolidated)

Total assets and ROA(¥ trillion)

(%)
6

3

2.37
2

2.35

2.34

2.31

2.31

3.8
3.2

2.28
3.6

3.3

2.8
2.5

2.28
4.6

3.7

4

2.0

2.2

1

2.29

2.28

2.27

2

0

0

07

08

Total assets

09

10

11

12

13

14

16(FY)

15

ROA (right axis)

Interest-bearing debt, D/E ratio, and interest-bearing debt/EBITDA(¥ trillion)

(Times)
15

1.5

1.0

1.25
9.6

9.4

8.8

8.3*

1.28

1.28

1.27

1.21

1.18
9.8

1.13
8.9

1.03
7.8

0.96
6.9

10

0.92
6.4

5

5.5

0.5

2.8

2.7

2.4

2.7

2.6

2.3

2.0

1.7

1.4

1.3

0

07

08

09

10

11

12

13

14

0

16(FY)

15

Interest-bearing debt
D/E ratio (right axis)
Interest-bearing debt/EBITDA (right axis)
* The figure has been calculated using EBITDA, which has been calculated based on the assumption that management
integration was executed at the beginning of the fiscal year.

Cash flows
147.0

150

108.6
79.0

103.3

74.9
14.2

0
–50

–25.2

–150
–200

68.7

40.7

131.9

124.8

79.4
46.0

–6.4
–115.0–120.6

127.7

101.5

80.2

50

–100

124.5

147.0

–100.1

–62.5

–44.3

–58.9

– 45.513

14

The outstanding balance of interest-bearing
debt was down 4.1%, or ¥39.3 billion, from theprevious fiscal year-end, to ¥916.6 billion.
Consequently, the D/E ratio decreased to 1.3
times. Also, the interest-bearing debt/EBITDA
ratio declined to 5.5 times, falling below 6
times for the first time since the Company’s
founding. We will continue to improve ourfinancial position in order to hedge risks offuture interest increases and secure funding
capacity over the medium-to-long term.

Net cash provided by operating activities was¥124.8 billion, reflecting income before
income taxes, depreciation and amortisation,and income taxes paid. Net cash used ininvesting activities was ¥78.8 billion due topurchases of noncurrent assets. Net cashused in financing activities was ¥47.3 billion
as a result of a net decrease in short-termborrowings.

(¥ billion)

100

Total assets rose ¥2.5 billion, from the p­ revious
fiscal year-end, to ¥2,282.1 billion, due to anincrease in land and buildings. ROA edged up
0.9 percentage point, to 4.6%, reflecting ourfourth consecutive year of record-­breaking
ordinary income.

–52.5
–78.8

–132.7–199.6
07

08

09

10

Net cash provided by operating activities
Free cash flow

11

12

16(FY)15

Net cash used in investing activities

Returns to shareholders(Yen)(%)
1,000.0

1,000

10.00

58.5

8.00

60

7.00
6.00

5.00

5.00

5.00

4.00

5.00

34.9

30.7

2.00

6.00

5.00

5.00

6.00

45

5.00
30

16.3

15.9

16.1

15.7

25.0
15

14.0
0

0

07

08

09

10

11

12

13

14

15

16(FY)

Dividend per share
Total payout ratio (right axis)
Notes: The total payout ratio for fiscal 2016 includes purchase of treasury stock (amounting to ¥8.7 billion).
The Company conducted a 1-for-5 reverse stock split with an effective date of 1st August 2016. The figures for
dividend per share above are prior to the reverse stock split.

Based on the move to a new management
stage in pursuit of medium-to-long-term
growth and the progress of financial position
improvements, dividend payments from profits in fiscal 2016 were raised ¥1 per share, to¥7 per share. In addition, the Company conducted treasury stock purchases in fiscal 2016
after setting a target of 25% for the total
payout ratio, which represents the combined
total of purchases of treasury stock and thetotal annual dividend as a percentage of net
income attributable to owners of the parent.

ESG Highlights

Environment
CO2 emissions volumes and energy consumption on crude oil-conversion basis(t-CO2)(kl)800,000

800,000

666,673

657,299

610,487

600,000

600,000

482,887
400,000

400,000

330,156

324,329200,000

312,677

320,905

200,000

0

0

2012

2013

Urban Transportation
Entertainment and Communications
International Transportation
Other

2014

(FY)

2015

Real Estate
TravelHotelsEnergy consumption on crude oil-conversion basis (right axis)

Electricity consumption during summer months (July–September)(Thousand kWh)
300,000

285,682

285,000

284,056
279,451
270,714270,000

264,353

255,000

0

2012

2013

2014

2015

(FY)

2016

Note: Figures above are for Hankyu Hanshin Holdings, Inc., and its domestic consolidated subsidiaries, but exclude
certain business sites for which electricity consumption is difficult to track.

SocialCapital investment in railway operations(¥ billion)
25

20

3.3
15

10

5

0

1.8

10.6

2.8

2.9

3.2

16.1

13.7

11.4
1.3

1.2

4.4

3.8

Hankyu Hanshin
2012

Hankyu Hanshin
2013

1.5

13.0
1.1

0.6

4.9

4.0

4.4

Hankyu Hanshin
2014

Hankyu Hanshin
2015

Hankyu Hanshin
2016

(FY)

Safety-related capital investment
Other capital investment
Note: The total length of lines operated is 143.6 km for Hankyu Corporation and 48.9 km for Hanshin Electric Railway.

In fiscal 2015, we pursued reductions in CO2 emissions in the six business segments, and overall emissions were down 1.4% year on year, to 657,299 t-CO2,
as a result. Approximately 65% of CO2 emissions canbe attributed to the Urban Transportation Business.
We strove to cut back on energy consumption inthis business by introducing new rolling stock andswitching to light-emitting diode (LED) lighting in­stations. Groupwide efforts to lower environmental
impacts and energy costs have led to a gradualdecrease in energy consumption that has continued
for four consecutive years. While CO2 emissions
jumped in fiscal 2013, this rise was a result of anincrease in the portion of electricity supplied fromthermal power gen­eration after the halt in operations of nuclear power plants following the March2011 Great East Japan Earthquake.

After the March 2011 Great East Japan Earthquake,
the Japanese government issued a request thatcompanies conserve electricity in order to help
alleviate the tight balance between supply and­demand for electricity. In response to the request,
the Group has been endeavouring to decrease its
electricity consumption over the peak usage
months from July to September. As a result, total
electricity consumption from July to September
2015 was 264,353,000 kWh, down 15% fromthe equivalent period in 2010. We are also committed to fulfilling our obligation to work toward an
average annual reduction of more than 1% over the
medium-to-long term in unit energy consumption
or unit energy consumption after adjustment for
usage fluctuations as set forth by the Japanese government. The Urban Transportation Business has
been implementing ongoing measures to reduce
unit energy consumption accordingly. Due to thesemeasures, the average annual reduction in unit
energy consumption over the five-year period
from fiscal 2011 to fiscal 2015 was 1.6% for Hankyu
Corporation and 1.3% for Hanshin Electric Railway.

As a railway operator, the Group provides a form of
public infrastructure. We therefore make prioritizing
the safety of our customers a fundamental policyof management, and conduct ongoing safetyrelated capital investments in our railway operations
accordingly. In fiscal 2016, such investments totalled¥13.0 billion at Hankyu Corporation and ¥4.4 billion
at Hanshin Electric Railway. These investments wereprimarily used to conduct station upgrades, including track elevation, seismic reinforcement of elevated tracks, expansion of platforms, and measures
for making stations barrier-free. At Hankyu Corpo­
ration, emergency stop buttons were installed at all
stations that can be pressed to automatically stop
trains as a safety measure for use if a customer falls
on the tracks.

ESG Highlights

Number of programmes and participants of the Hankyu Hanshin Dreams
and Communities Challenge Troop(Programmes)(Participants)
50

3,000

45

43
39

36

2,602
2,501

2,024
27

25

1,500

1,200

17
13
600
0

2011

Programmes

445

404

0

2012

2013

2014

2015

2016

2017

(FY)

Invited participants (right axis)* The survey was conducted among a random samplingof 1,000 customers of both genders that were between
the ages of 18 and 69 and living in the 23 towns andcities in the Kyoto, Osaka, and Kobe area.

GovernanceMembership of the Board of Directors(People)
15

2

2

2

2

2

10

7

7

6

6

5

5

5

5

2012

2013

2014

6

5

6

0

Directors with operational execution responsibilities
Internal directors without operational execution responsibilities
External directors

2015

2016

(As of the conclusion of the General Meetingof Shareholders for each fiscal year)

Cross-shareholdings(Number of companies in which the Company holds shares)
120

111

107
96
81

80

81

40

0

2012

As part of Hankyu Hanshin Dreams and Communities of the Future Project social contribution activity,
we hold experience-based learning programmes
for primary school students during summer vacation. These programmes take advantage of theunique business expertise of Group companies toprovide students with a diverse range of learning
opportunities. Since we began the initiative in 2010,
we have invited 9,776 students to participate inprogrammes from an aggregate total of roughly
70,000 applications. Moreover, a survey conductedby the Company in September 2015 found that 46%
of customers using the Hankyu or Hanshin lines
more than four days a week were aware of the
Hankyu Hanshin Dreams and Communities of the
Future Project.* This survey also discovered thatthose customers who are aware of the programme
held highly positive opinions of the Group and wereinclined to live alongside our lines.

2013

2014

2015

2016

(As of 31st March of each year)

The Board of Directors of the Company is comprisedof directors with operational execution responsibilities that are well-versed on the Group’s business aswell as part-time directors that represent majorGroup companies in order to reflect the perspectives of the six core businesses into management. In
addition, part-time directors have been appointed
from H2O Retailing Corporation and Toho Co., Ltd.,
with the aim of strengthening coordination withother companies in the Hankyu Hanshin Toho
Group. Further, two external directors that are independent of the Company and have abundant experience and expertise in corporate management
have been selected to raise the standard of decision
making and strengthen oversight functions forGroup management.

The Company acquires and holds shares of stock forthe purposes of strengthening business relationships and increasing coordination with partnercompanies as well as maintaining relationships withlocal communities. The ultimate goal of these holdings is to build trust with our various stakeholders
and improve corporate value from a medium-tolong-term perspective. We are progressively sellingholdings that are no longer meaningful. On 31st
March 2016, the Company held stocks in 81 companies for such purposes. On a market value basis,these stocks were worth approximately ¥38.0 billion
and accounted for 1.7% of total assets.

Core Business Highlights

Main Business Lines

Urban Transportation

P. 40

Railway operations:Hankyu Corporation, Hanshin Electric Railway, Nosé Electric Railway, Kita-Osaka Kyuko Railway, Hokushin Kyuko
Railway, Kobe Rapid Transit Railway

Automobile business (bus, taxi):

Hankyu Bus, Hanshin Bus, Hankyu Kanko Bus, Osaka Airport Transport, Hankyu Denen Bus, Hankyu Taxi, Hanshin Taxi

Retailing business:

Hankyu Corporation, Eki Retail Service Hankyu Hanshin, Hankyu Style Labels

Advertising business:

Hankyu Corporation, Hankyu Advertising Agency

Real Estate

P. 44

Real estate leasing business:

Extensive property holdings, mainly in the Umeda area and along the Hankyu and Hanshin lines (For details ofmajor properties, please see page 108.)
Major companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Realty

Real estate sales and other business:

We market condominiums, residential land lots, and detached houses, mainly alongside the Hankyu and Hanshinlines in the Kansai area. In recent years we have also focused on the Tokyo metropolitan area. We are engaged inproperty management, building maintenance, and other building operation and management services, as well as
real estate fund management, including private placement funds, and J-REIT businesses.
Major companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Realty, Hankyu Hanshin Building
Management, Hankyu Investment Partners, Hankyu REIT Asset Management

Entertainment andCommunications

P. 48

Sports business:

Professional baseball business (the Hanshin Tigers) and management and operation of Hanshin Koshien Stadium,and related businesses; music business (Billboard Live)

Stage business:

Takarazuka Revue and related businesses, operation of Umeda Arts Theatre and promotion of stage productions

Communication and media business:

Information services business, broadcast and communications business

Leisure business:

Management of Mt. Rokko business©Takarazuka Revue Company

TravelP. 50

International
Transportation

P. 52

HotelsP. 54

Travel business:

Hankyu Travel International, Hankyu Hanshin Business Travel, Hankyu Travel Support

International transportation business:

Hankyu Hanshin Express, Hankyu Hanshin Logipartners, 25 overseas subsidiaries of Hankyu Hanshin Express

Principal directly operated hotels:
Hotel Hankyu International
Hotel new Hankyu Osaka
Dai-ichi Hotel Tokyo
The Ritz-Carlton, Osaka** The Ritz-Carlton, Osaka is operated by the Ritz-Carlton hotel chain under the management of Hanshin Hotel Systems.

Core Business Highlights

Revenues from Operations (¥ billion) (right axis)
and Operating Income (¥ billion)
60

300

234.6
40

233.4

38.5

239.5

243.2

41.3

38.6

39.8

20

0

2014

2015

2016

2017
(Est.)

208.6

206.4

220.9

200

38.2

20

100

2014

2015

2016

110.4

112.6

112.5

14.2

15.0

15.3

2017
(Est.)

30

110.3
100

10

2014

2015

33.0

32.0

12.6

2016

2017
(Est.)

30.5

32.0

4

2

0

1.2

2014

2015

2016

2017
(Est.)

80.3
3.1

3

2.1

1
0

1.8
39.4

37.7

2014

2015

63.7

63.0

4
3

36.7

38.9
(net*)

2016

2017(Est.)

68.0

67.8
3.5

3.3

2
1
0

30

0

80

40
20

0.8
2014

2015

0

80
60

20

2016

2017
(Est.)

Although air freight exports have been declining in recent years due to the transfer ofmanufacturing overseas, worldwide logistics demand promises to grow steadily centred
on Asia. Further, as the manufacturing industry and other industries globalise their business activities, supply chains extending from raw material procurement through to thedelivery of products to consumers are becoming more complex, which is heightening
demand for forwarders able to provide comprehensive solutions.

(FY)

40

1.2

External factors, including economic trends, currency fluctuations, social conditions, andearthquakes and other natural disasters, affect the business conditions of the Travel
Business. Currently, the number of Japanese overseas travellers is stagnant due to uncertainty over the international situation. Meanwhile, the number of overseas visitors toJapan has been rising steadily over the past three years, and demand from overseas visitors promises to continue growing.

(FY)

60

2.2

According to the Ministry of Internal Affairs and Communications Statistics Bureau’s
Family Income and Expenditure Survey, consumption expenditure of total households
in 2015 decreased 2.7% year on year. Further, recreational service expenditure of total
households declined 4.0% year on year, down for the second consecutive year.
Nonetheless, the Hanshin Tigers and Takarazuka Revue continue to enjoy strong­customer-drawing power.

0

10

0.7

In the Umeda area, the market for rentable office space is seeing vacancy rates trend
toward gradual improvement due to the end of a growth period in the supply of new
office floor space and a steady trend toward small and medium-sized tenants relocating
to larger premises or seeking additional floor space in existing buildings.
As for conditions in the housing market, sales have been steady in the Tokyo metropolitan area and the Kansai area because lower interest rates for home loans are counter­acting an upward trend in sales prices stemming from land acquisition costs andconstruction costs that are rising and remaining high. As a result, the sales inventory is at
a low level.

(FY)

20

1.5

1.2

4

2

50

40

3

1

0

(FY)

150

20

0

0

223.6

49.9

37.2

In the Kansai area, the population has been declining in recent years as society ages. The
decrease is particularly pronounced in the group aged between 15 and 64. Consequently,
the Urban Transportation Business faces challenging business conditions. Areas servedby the Group’s railway lines, however, are comparatively popular. As a result, in theseareas the population has been trending upward since bottoming in 1996, the year after
the Great Hanshin Earthquake.

(FY)

300

38.0

0

200

100

60

40

Market Conditions

0

(FY)

According to the “White Paper on Leisure 2016,” hotel revenues rose 6.9% year on year
and reached a new record thanks to three consecutive years of growth. The main driverof this growth has been a surge in the number of overseas visitors to Japan. In 2016, therate of increase in the number of overseas visitors to Japan surpassed that of the previous year, and the overseas visitors market is likely to expand further. The rapid increase inoverseas visitors and a shortage of accommodation for the Tokyo 2020 Olympic andParalympic Games has led to stepped-up building of new hotels and renovation of existing hotels.

* As of fiscal 2017, revenues from operations will be presented on a gross basis rather than a net basis (total transactions net of freight costs).

Major Rental Properties / Major Sales Properties
Major rental properties
Completed

Leasable area1(1,000 m2)

Use

Property nameLocation

Umeda Hankyu Bldg.

Kita-ku, Osaka

2012

213

Department stores (Hankyu Department Store), Offices

Umeda Hanshin Daiichi Bldg. (HERBIS OSAKA)

Kita-ku, Osaka

1997

82

Hotels (The Ritz-Carlton, Osaka), Offices, Commercial facilities,
Multifunctional convention hall

Umeda Hanshin Daini Bldg. (HERBIS ENT)

Kita-ku, Osaka

2004

55

Offices, Commercial facilities, Theatre (Osaka Shiki Theatre)

Hankyu Chayamachi Bldg. (Applause Tower)

Kita-ku, Osaka

1992

52

Hotel (Hotel Hankyu International), Offices, Commercial facilities

Hankyu Sanban Gai Shopping Centre

Kita-ku, Osaka

1969

41

Commercial facilities

Hankyu Grand Bldg.

Kita-ku, Osaka

1977

36

Offices, Commercial facilities

GRAND FRONT OSAKA

Kita-ku, Osaka

2013

28

Offices, Commercial facilities, Knowledge Capital, Hotel(InterContinental Hotel Osaka)

Hankyu Terminal Bldg.

Kita-ku, Osaka

1972

27

Offices, Commercial facilities

Hankyu Five Bldg. (HEP FIVE)

Kita-ku, Osaka

1998

20

Commercial facilities

Navio Hankyu (HEP NAVIO)

Kita-ku, Osaka

1980

16

Commercial facilities

Kita Hankyu Bldg.

Kita-ku, Osaka

1971

13

Offices, Commercial facilities

NU– chayamachi

Kita-ku, Osaka

2005

12

Commercial facilities

Noda Hanshin Bldg. (WISTE)

Fukushima-ku, Osaka

1992

32

Commercial facilities, Offices

Shin-Osaka Hankyu Bldg.

Yodogawa-ku, Osaka

2012

24

Offices, Hotel (REMM Shin-Osaka), Commercial facilities

Hankyu Nishinomiya Gardens

Nishinomiya, Hyogo

2008

108

Commercial facilities, Department stores(Hankyu Department Store)

Hankyu Kawaramachi Bldg.

Shimogyo-ku, Kyoto

1974

38

Department stores (Takashimaya)

1. Leasable area does not include areas for public use.

Major properties sold in fiscal 20162
Property nameLocation

Major properties planned to be sold in fiscal 20172
Total number of units

Condominium

Property nameLocation

Total number of units

Condominium

Geo Senri Chuo3

Toyonaka, Osaka

514 4

Geo Takatsuki Muse Resis

Takatsuki, Osaka244

Geo Hankyu Rakusaiguchi North Residence

Muko, Kyoto

231

G-Clef Geo Kobe Motoyama3

Higashinada-ku, Kobe

256

Geo Seishin Chuo

Nishi-ku, Kobe

205

Geo Senri Chuo The Residence

Toyonaka, Osaka218

Geo-Tower Minamihorie

Nishi-ku, Osaka

203 4

Brod Takatsuki

Takatsuki, Osaka

51

Ukyo-ku, Kyoto

32

Muko, Kyoto

161

Geo Kyoto Saga Arashiyama

Geo Minami Kusatsu Front Stage

Kusatsu, Shiga48

Geo Kyoto Arashiyama

Nisikyo-ku, Kyoto

25

Geo Nishinomiya Kitaguchi Hinokuchi-cho

Nishinomiya, Hyogo

36

Geo Sumiyoshi Honmachi

Higashinada-ku, Kobe

22 4

Geo Kobe Yamamotodori

Kobe, Hyogo36

Geo Grande Okamoto 1-chome

Higashinada-ku, Kobe

17 4

Geo Nishinomiya Kitaguchi Crowns

Nishinomiya, Hyogo

20

Geo Tama Center

Tama, Tokyo

300

Shinjuku, Tokyo

1,093 4

Geo Chigasaki 3

Chigasaki, Kanagawa

136

Le Fond Solei Funabashi Utsukushi Gakuen

Funabashi, Chiba

186

Geo Tsudanuma

Narashino, Chiba84

Geo Todoroki

Setagaya, Tokyo

69

Geo Kyodo

Setagaya, Tokyo78

Geo Shin-Koiwa

Edogawa, Tokyo

38

Geo Gyoen Naitomachi

Shinjuku, Tokyo

63

Geo Akasaka Tango-cho

Minato, Tokyo

23

Geo Hankyu Rakusaiguchi South Residence

3

Tomihisa Cross Comfort Tower 3
3

Detached house

Detached house
Nishi-Yodogawa-ku, Osaka254

Hankyu Saito Garden Front Saito Mino-o Residence

Minoh, Osaka48

Hapia Garden Neyagawa-shi

Neyagawa, Osaka

62

Hapia Garden Mino-o Onohara

Minoh, Osaka

20

Hapia Garden Tarumi Kasumigaoka

Tarumi-ku, Kobe

10

Hapia Garden Tsukaguchi Tomatsucho

Amagasaki, Hyogo

10

Hapia Garden Yokohama Yamate

Naka-ku, Yokohama

14Grand Forum Soshigaya-Okura Hapia3

Setagaya, Tokyo

27

Hapia Garden Sakuradai 3-chome

Nerima, Tokyo

12

Hapia Garden Shimo Shakujii

Nerima, Tokyo

13

Hapia Garden Suginami Horinouchi

Suginami, Tokyo

11

Hapia Garden Oizumi Gakuencho

Nerima, Tokyo

8

Osaka Nakajima Koen Toshi Hapia Garden

2. Ordered by highest total number of condominium units first, with Kansai area and Tokyo
metropolitan area categorised separately
3. Joint-venture properties
4. Including unsold condominium units

Major Group Companies(As of 31st March 2016)

Consolidated Subsidiaries
Urban Transportation

Entertainment and Communications

Main business

Name of company

Main business

Name of company

Railway operations

Hankyu Corporation
Hanshin Electric Railway Co., Ltd.
Nosé Electric Railway Co., Ltd.
Kita-Osaka Kyuko Railway Co., Ltd.
Hokushin Kyuko Railway Co., Ltd.
Kobe Rapid Transit Railway Co., Ltd.
Hankyu Hanshin Railway Technology Co., Ltd.
Hankyu Hanshin Electric System Co., Ltd.

SportsHanshin Electric Railway Co., Ltd.
Hanshin Tigers Baseball Club, Ltd.
Hanshin Contents Link Corporation
Wellness Hanshin Inc.

Stage

Hankyu Corporation
Takarazuka Creative Arts Co., Ltd.
Takarazuka Stage Co., Ltd.
Umeda Arts Theater Co., Ltd.

Hankyu Bus Co., Ltd.
Hanshin Bus Co., Ltd.
Hankyu Kanko Bus Co., Ltd.
Osaka Airport Transport Co., Ltd.
Hankyu Denen Bus Co., Ltd.
Hankyu Taxi Inc.
Hanshin Taxi Co., Ltd.
Hankyu Hanshin Motor Technology Co., Ltd.
Nippon Rent-A-Car Hankyu Inc.

Communication andmedia

Itec Hankyu Hanshin Co., Ltd.
Bay Communications Inc.
Himeji Cable Television Co., Ltd.

Leisure, etc.

Mt. Rokko Cable Car & Tourism Co.

Automobile

Retailing

Hankyu Corporation
Eki Retail Service Hankyu Hanshin Co., Ltd.
Hankyu Style Labels Co., Ltd.

Advertising

Hankyu Corporation
Hankyu Advertising Agency Inc.

Other

Alna Sharyo Co., Ltd.

TravelMain business

Name of company

Travel agency

Hankyu Travel International Co., Ltd.
Hankyu Hanshin Business Travel Co., Ltd.
Hankyu Travel Support Co., Ltd.

International Transportation

Main business

Name of company

Internationaltransportation

Hankyu Hanshin Express Co., Ltd.
Hankyu Hanshin Logipartners Co., Ltd.
HHE (USA) Inc.
HHE (Deutschland) GMBH
HHE (HK) Limited
HHE Southeast Asia Pte. Ltd.

Real Estate

Main business

Name of company

Real estate leasing

Hankyu Corporation
Hanshin Electric Railway Co., Ltd.
Hankyu Realty Co., Ltd.
Osaka Diamond Chikagai Co., Ltd.
Hanshin Real Estate Co., Ltd.

Real estate sales andother business

Hankyu Corporation
Hanshin Electric Railway Co., Ltd.
Hankyu Realty Co., Ltd.
Hankyu Hanshin Building Management Co., Ltd.
Hankyu Hanshin High Security Service Co., Ltd.
Hankyu Hanshin Clean Service Co., Ltd.
Hankyu REIT Asset Management, Inc.

Equity-Method Affiliates
Main business

Name of company

Department store

H2O Retailing Corporation[Securities code: 8242]

Railway operations

Nishi-Osaka Railway Co., Ltd.
Kobe Electric Railway Co., Ltd.
[Securities code: 9046]

Real estate leasing

Tokyo Rakutenchi Co., Ltd.
[Securities code: 8842]

Motion picture business Toho Co., Ltd. [Securities code: 9602]
Commercial broadcasting Kansai Telecasting Corporation

HHE: Hankyu Hanshin Express

HotelsMain business

Name of company

Hotel management

Hankyu Hanshin Hotels Co., Ltd.
Hanshin Hotel Systems Co., Ltd.
Amanohashidate Hotel Co., Ltd.
Arima View Hotel Co., Ltd.
Hankyu Hanshin Restaurants Co., Ltd.

Other

Main business

Name of company

Construction

Hanshin Kensetsu Co., Ltd.
Chuo Densetsu Co., Ltd.

Credit and point card

Hankyu Hanshin Card Co., Ltd.

Group financeHankyu Hanshin Financial Support Co., Ltd.

Outsourcing services
for personnel andaccounting services

Hankyu Hanshin Business Associate Co., Ltd.

Group History■ Hankyu Holdings, Inc.

■ Hanshin Electric Railway Co., Ltd.
1899

1907

Founding of Mino-Arima Electric Railway Company(predecessor of Hankyu Corporation) by Ichizo Kobayashi

1910

Opening of Takarazuka Line (Umeda–Takarazuka) and Mino-o Line
(Ishihashi–Mino-o)

1913

Formation of Takarazuka Girls’ Revue(currently Takarazuka Revue Company)

1924

Completion of Takarazuka Grand Theatre

1929

Opening of Hankyu Department Store,
Asia’s first railway terminal department
store

1948

Launch of services as Pan American Airways agent

1964

Opening of Hotel new Hankyu Osaka

1973

Opening of New Hankyu Umeda Station as one of the largest
private railway terminals in JapanFounding of Settsu Electric Railway(renamed Hanshin Electric Railway Co., Ltd., in same year)

1905

Beginning of operations linking Kobe
(Sannomiya) and outer Osaka(Deiribashi)

1924

Opening of Koshien Stadium (currently Hanshin Koshien Stadium)

1933

Opening of Hanshin Mart at Hanshin Umeda Station(currently Hanshin Department Store)

1935

Establishment of Osaka Baseball Club
(Osaka Tigers, currently Hanshin Tigers)

1948

Launch of airline agency business

1985

Hanshin Tigers win Japan Series for first time

Changing of company name from Keihanshin Kyuko Railway
Company to Hankyu Corporation
1995
2005

Considerable damage to transportation and business infrastructure of Hankyu and Hanshin due to Great Hanshin Earthquake
Establishment of Hankyu Holdings, Inc.

2006

Establishment of Hankyu Hanshin Holdings, Inc.
Establishment of Hankyu-Hanshin-Daiichi Hotel Group2007

Announcement of Hankyu Hanshin Holdings Group 2007 Medium-Term Management Plan
Management integration of Hankyu and Hanshin department store businesses

2008

Opening of Hankyu Nishinomiya Gardens

2010

Completion of renovation of Hanshin Koshien Stadium,
opening of Museum of Hanshin Koshien StadiumCompletion of Umeda Hankyu Building Office Tower
2012

Completion of Umeda Hankyu Building,full opening of Umeda Flagship Store of Umeda Department Store

2015

Announcement of the Hankyu Hanshin Holdings Group’s
Medium-Term Management Plan (Fiscal 2016–Fiscal 2019)2016

Opening of the Group’s first logistics centre in the ASEAN region in Indonesia

Investor Information(As of 31st March 2016)

Hankyu Hanshin Holdings, Inc.
Head Office:Paid-in Capital:¥99,474 million

1-16-1, Shibata, Kita-ku, Osaka 530-0012, Japan

Fiscal Year-End:

31st March

Phone: +81-6-6373-5001

Number of Employees:

21,607 (consolidated)

Authorised Shares:

3,200,000,000*

Issued Shares:

1,271,406,928*(Group Planning Div., IR Office)Fax: +81-6-6373-5042
Tokyo Office (Personnel and General Affairs Div.):

Number of Shareholders: 77,664*

Toho Twin Tower Bldg.,

Unit of Trading:

1,000 shares*

Stock Exchange Listing:Tokyo

Transfer Agent:

Mitsubishi UFJ Trust and Banking Corporation

1-5-2, Yurakucho, Chiyoda-ku, Tokyo 100-0006, Japan
Phone: +81-3-3503-1568
Fax: +81-3-3508-0249

Principal Shareholders:Ownership Breakdown:
Number of shares(Thousands)*

Name

Japan Trustee Services Bank, Ltd. (Trust account)
The Master Trust Bank of Japan, Ltd. (Trust account)
Nippon Life Insurance Company
Sumitomo Mitsui Banking Corporation
H2O Retailing Corporation
State Street Bank West Client–Treaty 505234 (Standing Proxy:
Mizuho Bank, Ltd. Settlement & Clearing Services Division)
Japan Trustee Services Bank, Ltd. (Trust account 7)
Japan Trustee Services Bank, Ltd. (Trust account 6)
Japan Trustee Services Bank, Ltd. (Trust account 5)
Japan Trustee Services Bank, Ltd. (Trust account 1)

Percentage(%)

69,19045,341
29,023
21,90921,037

5.44
3.57
2.28
1.72
1.65

17,0381.34

16,906
13,757
13,752
13,730

1.33
1.08
1.08
1.08

National government andlocal public organisations
0.00%

Individuals and others
42.71%

Financial institutions
28.90%

Securities
companies
1.00%
Foreigncorporations
and individuals
18.39%

Other corporations
9.00%* The Company conducted a 1-for-5 reverse stock split and the change of trading unit from 1,000 shares to 100 shareswith an effective date of 1st August 2016. The figures are prior to the reverse stock split and the change of trading unit.

Stock Price Range and Trading Volume (Tokyo Stock Exchange):
Stock price (¥)
900

700

Nikkei average (¥)
25,00020,000Stock Price (left axis)

500
300

15,000

Nikkei Average (right axis)

10,000100

5,000

100,000

50,0000
Trading volume 4(Thousand shares)

5

6

7

8

9 10 11 12 1

2

3 4

5

6

7

8

9 10 11 12 1

2

3

4

5

6

7

8

9 10 11 12 1

FY2014FY2015FY2016

High

648

800

824

Low

492

533

667

At year-end

562

743

718

2

3