Hankyu Hanshin Holdings Group
Results Briefing Materials for Fiscal 2019(fiscal year ended 31st March 2019)

May 22, 2019
Hankyu Hanshin Holdings, Inc.
9042 http://www.hankyu-hanshin.co.jp/en/

Contents
Ⅰ. Performance Highlights for Fiscal 2019(fiscal year ended 31st March 2019) ･･･
Ⅱ. Summary of the Medium-Term Management Plan

2･･･ 28

Ⅲ. Specific Projects in the Medium-Term･･･ 46
Management Plan (FY2019–FY2022)
Ⅳ. Forecast for fiscal 2020 (fiscal year ending 31st March･･･ 712020) and outlook for each business segment
Ⅴ. Referential Materials･･･ 84

Business forecasts and other projections herein are based on information available at present and logical assessments and do not
represent any promise by the Company. The actual results may differ significantly from these projections due to various factors.

1

Ⅰ. Performance Highlights for Fiscal 2019(fiscal year ended 31st March 2019)2

Blank page3

Consolidated Statements of Income(Summary)
FY2019 Results

Consolidated Subsidiaries
Equity-Method Affiliates
Total(¥ million)

Change94 companies 92 companies +2 (3 companies increase, 1 company decrease)
11 companies 11 companies ±0
105 companies 103 companies +2 (3 companies increase, 1 company decrease)（※）The impact ofnatural disasters-2.2billion yen

Revenues from operations

FY2019Results

FY2018Results

791,427

760,252 +31,174 (+4.1%)

114,937

105,211 +9,726 (+9.2%)

Record highOperating income

FY2018 Results-2.0billion yen

ChangeRemarks
For details,
please see next page

Record highEquity in income of affiliates-4,269Non-operating income

9,377

12,791 -3,414

Non-operating expenses

13,711

14,228 -456

110,543

103,774 +6,768 (+6.5%)

Ordinary income-2.0billion yen

Record highExtraordinary income
Extraordinary loss

Losses associatedwith natural
disasters
2.9billion yen

Net income attributable toowners of the parent

7,221

of
35,168 -27,947 The impact
the29,20237,533 -8,330

agreement oftransfer
Hokushin
Kyuko Lineassets, etc.

65,476

66,361 -885 (-1.3%)

Gain on contributions forconstruction -28,826
Loss on reduction of noncurrent
assets -29,660
Impairment loss +18,443
Tax expense -12,837-3.4billion yen（Reference）※Affected by the 2018 Osaka earthquake, 2018
Japan floods, Typhoon Jebi, 2018 Hokkaido Eastern
Iburi earthquake (travel business only), andTyphoon Trami.

FY2019 Results

FY2018 Results

ChangeDepreciation and amortisation

54,172

53,276+895

Financial balance ① - ②-8,118-8,728+609

Interest and dividend income①

1,496

1,331

+164

Interest expense②

9,615

10,059-444

4Consolidated Statements of Income (Breakdown for each business segment)[Key results in current period]
Income and revenue increased. The negative effects of natural disasters were offset by
the sale of land for commercial facilities in the eastern section of International Culture
Park ‘Saito’ (in Ibaraki City, Osaka Prefecture) in the Real Estate business and strong
performance in the Urban Transportation Business and the Entertainment andCommunications Business.
Revenues from operations(¥ million)
The impact of natural
disasters -1.2billion yen

Urban Transportation

FY2019Results

FY2018Results

Change238,562

235,967+2,594

Segment income
FY2019Results-1.1billion
yen

FY2018Results

Change43,45541,586+1,86949,25040,954+8,295

Real Estate

237,276

222,586+14,689

Entertainment andCommunications

126,531

121,078+5,45318,75917,750+1,008Travel

35,52834,022+1,506

1,764

2,055

-291

International
Transportation

89,99083,707+6,823

2,392

2,777

-384

1,214

2,216

-1,001

Hotels

-1.0billion yen

Other
Adjustment
Total-2.2billion yen-0.7billion
yen64,92367,248-2,324

43,41742,811

+605

2,333

1,929

+404

-44,803-47,169+2,366-4,231-4,058-173

791,427

760,252+31,174

114,937

105,211+9,726-2.0billion
yen

5Urban Transportation results

The impact of natural disasters
Revenues from operations：-1.2billion yen
Operating income：-1.1billion yen[Railway]・Operating income and revenue increased. The negative effects of natural disasters wereoffset by strong performance of Hankyu and Hanshin lines and a reduction in power
costs.
[Automobile]
・The addition of a consolidated subsidiary resulted in higher operating revenue. However,operating income declined due to the impact of natural disasters and higher fuel costs.
(¥ million)

FY2019Results

FY2018Results

Change%Revenues from operations

238,562

235,967+2,594+1.1%

Operating income

43,45541,586+1,869+4.5%[Breakdown by type of business](¥ billion)
Revenues from operations

FY2019Results

Y on YThe impact of natural
disasters -0.7billion yen

152.8

+0.6

Automobile-0.2billion yen

49.5

+1.5

Retailing-0.3billion yen

30.3

-0.3

Advertising

9.0

+0.3

Others9.5+0.8

Railway*Not including head office expenses /adjustments.
6

[Urban Transportation] Railway Performance results
Hankyu Corporation
Fare revenues (¥ million)*
FY2019Results

FY2018Results

ChangePassenger volumes (Thousands)*
FY2019Results

FY2018Results

ChangeCommuter pass

33,45633,198+258(+0.8%)

337,778

335,005 +2,772(+0.8%)

Workers

28,962

28,690+271(+0.9%)

237,542

234,816 +2,726(+1.2%)

Students

4,494

4,507

-13(-0.3%)

100,235

100,189+46(+0.0%)

Other tickets

63,05963,137-78(-0.1%)

318,158

319,939-1,781(-0.6%)

Total

96,51696,335+180(+0.2%)

655,936

654,945+991(+0.2%)

The impact of natural disasters -0.6billion yen

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2019Results

FY2018Results

ChangePassenger volumes (Thousands)*
FY2019Results

FY2018Results

ChangeCommuter pass

12,024

11,797+226(+1.9%)

124,353

122,073 +2,279(+1.9%)

Workers

10,790

10,576+213(+2.0%)

98,31096,401 +1,909(+2.0%)

Students

1,233

1,221

+12(+1.1%)

26,04325,672Other tickets

22,03021,638+392(+1.8%)

121,012

119,567 +1,444(+1.2%)

Total

34,05433,436+618(+1.9%)

245,366

241,641 +3,724(+1.5%)+370(+1.4%)

The impact of natural disasters -0.1billion yen＊ Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
For Hankyu Corporation, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway

7

[Urban Transportation] Transportation revenue (Factors of YoY Change)《Hankyu Corporation》《Hanshin Electric Railway》

Transportation revenue (tier 1 + tier 2)

Transportation revenue (tier 1 + tier 2)(¥ million)(¥ million)
Totals forcommuter passes
and other tickets

1Ｑ

2Ｑ

3Q

4Q

Total

Totals forcommuter passes
and other tickets

1Ｑ

2Ｑ

3Q

4Q

Total

FY2019 Results

24,389 23,814 24,349 23,963 96,516

FY2019 Results

8,640

8,764

8,336

8,314 34,054

FY2018 Results

24,532 23,901 24,313 23,588 96,335

FY2018 Results

8,474

8,687

8,200

8,073 33,436

Change

+165

+76

+136

+240

Change

-143

(%)

-0.6％

-87

+36

+374

+180

-0.4％ +0.2% +1.6% +0.2%

Factors of YoY Change (estimated)
・Impact of natural disasters during period (e.g., earthquakes,
torrential rain, typhoons)※-¥586million
・Other factors (e.g. increase in line-side areas populations andothers)+¥766million

(%)

+618

+2.0％ +0.9％ +1.7% +3.0% +1.9%

Factors of YoY Change (estimated)
・Impact of natural disasters during period (e.g., earthquakes,
torrential rain, typhoons)-¥99million
・Other factors (e.g. increase in line-side areas populations, andthe strong performance of the Hanshin Namba Line and others)＋¥717million※Includes natural disasters other than the 2018 Osaka earthquake, 2018 Japan floods, Typhoon Jebi, and Typhoon Trami

8

[Urban Transportation] Referential Information
Hankyu Line: Transportation revenue (tier 1 + tier 2)
Commuter passes
Other tickets
Total(¥ million)

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
31,880 31,126 29,484 29,922 30,391 31,299 31,549 32,272 32,628 33,198 33,456
60,087 58,582 60,000 60,268 60,749 61,630 60,910 62,920 62,720 63,137 63,059
91,967 89,708 89,485 90,191 91,141 92,929 92,459 95,192 95,348 96,335 96,516

105%

FY2009＝100%（+¥3.9% compared to fiscal 2014）

(FY)

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Hanshin Line: Transportation revenue (tier 1 + tier 2)
Commuter passes
Other tickets
Total

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
8,913
9,642 10,126 10,623 10,740 11,008 11,107 11,372 11,563 11,797 12,024
16,316 18,396 18,899 19,422 19,669 20,260 20,286 21,035 21,136 21,638 22,030
25,230 28,038 29,025 30,045 30,410 31,269 31,394 32,407 32,699 33,436 34,054

135%

FY2009＝100%（+8.9% compared to fiscal 2014）★ Opening of Hanshin Namba Line(March, 2009）

(FY)

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

9

Real Estate results[Real estate leasing]・Operating income and revenue both increased. Rental buildings in the Umeda area andelsewhere performed well. Another factor was the collection of tenant-borne
construction fees following completion of phase 1 of the Umeda 1-1 Project.

[Real estate sales and Others]
Income and revenue increased. A decline in condominium sales was offset by the sale ofland for commercial facilities in the eastern section of International Culture Park ‘Saito’(in Ibaraki City, Osaka Prefecture).
【Reference】 Condominium sales：-45（1,114 units; previous year 1,159 units）*Figures include units in shared buildings that the Group partly owns.

(¥ million)

FY2019Results

FY2018Results

Change%Revenues from operations

237,276

222,586+14,689+6.6%

Operating income

49,25040,954+8,295 +20.3%[Breakdown by type of business](¥ billion)
Revenues from operations

FY2019Results

Y on Y

Real estate leasing

111.1

+4.4

Real estate sales and Others

144.5

+11.0

*Not including head office expenses/adjustments.

10Entertainment and Communications results[Sports]
Operating revenue increased, reflecting increased revenue from Billboard-related
business*1. However, operating income declined because Hanshin Tigers failed to qualify
for the Climax Series during the period.

[Stage]Operating revenue increased with the stage business benefitting from strong sales ofshow-related merchandise and the production of shows overseas. However, operating
income was on par with last year’s level because of increased production costs.

[Communication, Media and Others]

Income and revenue increased thanks to increased orders in the information services
business and the addition of a consolidated subsidiary.
*1: “Billboard-related business” refers to Billboard-licensed music businesses such as operating Billboard Live events in Roppongi and Umeda.

(¥ million)

FY2019Results

FY2018Results

Change%Revenues from operations

126,531

121,078+5,453+4.5%

Operating income

18,75917,750+1,008+5.7%(¥ billion)
Revenues from operations

FY2019Results

Y on Y[Breakdown by type of business]

Sports

37.2

+0.3

Stage

34.9

+0.9

Communication, media and Others

55.9

+4.5

*Not including head office expenses /adjustments.

11

Travel results
Operating revenue increased. Although domestic travel was affected by natural disasters,
this was offset by efforts to promote travel using reconstruction discounts. Overseas
travel also contributed to the increase, with strong numbers of visitors to Asian
destinations. However, operating income declined due to higher costs for advertising andother items.
(¥ million)

FY2019Results

FY2018Results

Change%Revenues from operations

35,52834,022+1,506+4.4%

Operating income

1,764

2,055

-291

-14.2%[Performance Highlights for Fiscal 2019]【Overseas travel】◆Overseas travel billings : Ranking 3(※)
Despite the impact of natural disasters, performance
Billings： ￥229.8billion（Y on Y +11.2%)
exceeded the level of the previous year thanks toincreased travel to European, Hong Kong and other◆Domestic travel billings : Ranking 5(※)
Asian destinations.
Billings： ￥136.7billion（Y on Y +0.4%)【Domestic travel】◆Total travel billings : Ranking 5(※)
Due to the impact of natural disasters, travel toBillings： ￥370.0billion（Y on Y +7.1%)
Hokkaido and similar destinations declined from the※ The above figures indicate the aggregated results for Hankyu Travel
International, Hankyu Hanshin Business Travel, and Hanshin Travel International previous year. Travel to Hokuriku, Koshinetsu, Kinki,(intercompany transactions offset)
and Kyushu was better, exceeding the level of the※ Notes: Sales volume indicates the aggregated volume for April to March. The
values for industry ranking are based on aggregated results from April to January. previous year slightly.
※ Source: Japan Tourism Agency, ‘Bulletin on Sales Volumes among the Major
Travel Agents’ (Shuyō ryokō-gyōsha no ryokō toriatsukai jōkyō sokuhō)12[Travel] Referential information
Billings
Domestic travel

Overseas travel(¥ billion)

450.0
400.0

132.4

350.0
300.0

137.4

135.5

128.5

111.9

146.3
136.8
132.5

250.0

129.0

136.1

136.7

200.0
150.0
100.0

246.3

245.3

255.3

270.9

290.1

261.6

234.7

201.1

186.9

FY2016FY2017

206.6

229.8

50.0

0.0
FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2018FY2019※Figures for fiscal 2009 to fiscal 2015 represent the simple aggregate amounts from Hankyu Travel
International and Hankyu Hanshin Business Travel.
The figures from fiscal 2016 and onwards represent the aggregate amounts from the two companies
as well as from Hanshin Travel International (offsetting intercompany transactions).

13

International Transportation results
Operating revenue increased thanks to strong air export volume in Japan. However,operating income declined as a reactionary downturn from the previous year, which saw
strong volume in East Asia and Europe.
(¥ million)

FY2019Results

FY2018Results

Change%Revenues from operations

89,99083,707+6,283+7.5%

Operating income

2,392

2,777

-384

-13.9%【 Performance Highlights for Fiscal 2019】• In Japan, air transport volume increased, particularly in exports of automobile components.
Ocean transport and logistics businesses also performed well.
•In the United States, logistics business performed well, but ocean transport decreased, resulting
in less operating income than in the previous year.

•

In EMEA※ and East Asia, performance was generally as planned. However, there was areactionary decline from the previous year, when air transport performed well.

•

In ASEAN, performance was strong, particularly in the Philippines and Thailand. Operating
income exceeded the level of the previous year.
※EMEA refers to Europe, the Middle East and Africa

14

[International Transportation] Referential information【Total handling volume for Japanese and non-Japanese companies in the International Transportation Business segment】

160
140

Air Export Freight Weight（unit：thousand ton）

143

120

128
121

117

115

FY2012FY2013

FY2014115

121

FY2016FY2017141

148

FY2018FY2019

100
80
60
40

20
0
FY2011
140

TEU※-measured overseas export volume

120
100

FY201574

76

79

FY2011FY2012FY2013（unit：thousand TEU）

92

98

95

103

FY2014FY2015FY2016FY2017

111

113

FY2018FY2019

80
60
40
20
0
※TEU：‘Twenty-foot equivalent unit’—a unit of cargo capacity based on the volume of
a 20-foot-long container

15

Hotels results

The impact of natural disasters
Revenues from operations：-1.0billion yen
Operating income：-0.7billion yen

Income and revenue decreased, reflecting the impact of natural disasters and thetermination of the Rokkosan Hotel management contract in December 2017.
(¥ million)

FY2019Results

FY2018Results

Change%Revenues from operations

64,92367,248-2,324-3.5%

Operating income

1,214

2,216

-1,001-45.2%[Performance Highlights for Fiscal 2019]
Occupancy rates of Hankyu Hanshin Hotels
Total 90.7％ ※ (-2.0 points from previous year)【Hotels business】

・Hotels performed less well than they did in theprevious year. In the Tokyo metropolitan area,
occupancy rates and ADR were high, particularly
Kansai area 90.9%(-4.5 points from previous year)
Tokyo metropolitan area 90.9%(+2.2 points from previous year) in Dai-ichi Hotel Tokyo and remm ROPPONGI(which opened in March 2017). The hotels in
Average daily rates (ADR) of Hankyu Hanshin Hotels
Kansai area fared less well due to the impact of※natural disasters.
Total ¥14,009 (+¥177 from previous year)
Kansai area ¥13,406 (-¥143 from previous year)
Tokyo metropolitan area ¥16,098 (+¥649 from previous year) 【Parties business and Restaurants business】※
・The restaurants business generally performed
Includes remm Kagoshima
well, achieving similar results to the previous year,
despite the closure of an outside restaurant. The
parties business posted lower earnings than it didin the previous year, reflecting the impact ofnatural disasters coupled with a sluggish market.

16

[Hotels] Referential information
Average daily rates (ADR) and occupancy rates of Hankyu Hanshin Hotels in the Tokyo metropolitan area and Kansai area
21,000Tokyo metropolitan area ADR ※1
Tokyo metropolitan area occupancy rate(right axis) ※1
83.3%

18,000
82.4%

89.7%
83.7%

89.9%

79.7%

92.2%

83.3%

15,00012,00014,287

14,046

13,52014,288

92.6%
86.6%

Kansai area ADR ※2
Kansai area occupancy rate（right axis） ※2
92.2%

93.9%

94.3%

88.6%

90.5%

90.8%

6,000
（¥）

9,859

FY20109,489
FY20119,407

FY20129,521

FY2013

90.9%
88.7%

80.0%

17,221
15,21016,66515,853

15,44916,09860.0%

14,61914,14011,6169,000

100.0%

95.4%

10,210FY2014

13,406

13,549

40.0%
20.0%

FY2015FY2016FY2017FY2018FY20190.0%（％）

Non-Japanese guests as a percentage of overnight-stay guests
Tokyo metropolitan area ※1

50.0%
40.0%

31.4%

30.0%
20.0%
10.0%

Kansai area ※2

16.3%

16.4%

38.6%

38.1%

36.9%

37.0%

42.3%
40.6%

45.6%
39.9%

22.7%
13.1%

11.7%

12.7%

10.0%

FY2010FY2011FY2012

25.0%

14.9%
12.3%

The total figures for FY2019 is 41.2％(+0.0 points from previous year)

17.3%

0.0%
FY2013

FY2014FY2015FY2016FY2017FY2018FY2019※1 Directly managed Hanshin Hankyu hotels, hotels in the Tokyo area (excluding HOTEL new HANKYU TOKYO,. including remm Roppongi, which opened in
March 2017)※2 Directly managed Hanshin Hankyu hotels, hotels in the Kansai area (including remm Shin-Osaka, which opened in September 2012)17

Consolidated Statements of Income(Non-operating profit and loss)(¥ million)

FY2019Results

FY2018Results

Operating income

114,937

105,211+9,726

9,377

12,791-3,414

4,962

9,232

-4,26913,771

14,228

-456

9,615

10,059-444

110,543

103,774+6,768Non-operating income
Equity in income of affiliates

Non-operating expenses
Interest expenses

Ordinary income

Change18

Consolidated Statements of Income(Extraordinary profit and loss)(¥ million)

FY2019Results

Extraordinary profit and loss

FY2018Results

Change-21,981-2,364-19,616

7,221

35,168-27,947

Gain on contributions for construction

3,657

32,483-28,826

Gain on sales of noncurrent assets

2,758

1,276

+1,481

Other

806

1,408

-601

29,20237,533-8,330Loss on reduction of noncurrent assets

4,042

33,702-29,660

Loss on impairment of fixed assets

19,262819+18,443

Other

5,897

3,011

+2,886Extraordinary income

Extraordinary loss

19

Agreement with Kobe City to transfer Hokushin Kyuko Line assets①【Circumstances】● Tanigami

Early
1960s–

With new town developments being planned from north Kobe
to Sanda, there was a need to accommodate expected increasein transport demand.

1988–

Hokushin Kyuko Line opened in 1988, linking Tanigami Station(in Kita-ward, Kobe) with Shin-Kobe Station.
However, passenger numbers were much lower than expected.
From the time of opening, Hokushin Kyuko Railway continued
in the red and eventually fell into a severe debt crisis.
There were three reasons why passenger numbers were solow:

Hokushin Kyuko Line
Kobe Electric Railway（Operating route length :7.5km） Hankyu

Kobe Line

Shin-Kobe Tunnel(road)
Shin-Kobe●

Sannomiya
Kobe
Municipal
Subway’s
Seishin
YamateLine

TunnelHanshin
Main Line

1.
2.
3.

Kobe Airport

1992-

Hokushin Kyuko Railway’s largest shareholder, Hankyu
Corporation, worked with other stakeholders (including Hyogo
Prefecture and Kobe City) on incremental measures to revive
the railway’s fortunes.

2002-

The national, prefectural, and municipal governments agreed
on a scheme to separate infrastructure and operations, with
Hokushin Kyuko Railway acting as a tier 2 railway operator andKobe Rapid Transit Railway as a tier 3 operator.
- Hokushin Kyuko Railway started to recover, posting stablenet income.

See page.93 formore details.

【Kobe City’s offer】

The residential development was scaled down to a population of
200 thousand (originally, it was intended to house 400 thousand
residents).
The JR Fukuchiyama Line was converted to a double-track line,
prompting an outflow of customers toward Osaka.
The Shin-Kobe Tunnel opened parallel to the Hokushin Kyuko Line.
A bus service that used this tunnel provided a cheaper alternative.

The present scheme (separating infrastructure and operations) will end in fiscal 2022. Kobe City has offered to buy up
Hokushin Kyuko Line assets and bring it under unified operation with Kobe Municipal Subway’s Seishin Yamate Line,
which already allow through-train services.
20

Agreement with Kobe City to transfer Hokushin Kyuko Line assets②【Our opinion on the offer】
1. Avoidance of business risks
・By transferring the assets, we could avoid the following business risks associated with Hokushin
Kyuko Railway:-

It is very doubtful whether we could continue the present scheme beyond fiscal 2023. It is likely that the scheme
would pose an increasing burden on the group.
The population in Kobe’s Kita ward is set to shrink further. Moreover, in around 2040, we would need to spend vast
sums on replacing rolling stock and on repairing aging infrastructure (including the tunnel).

2. Economic boost for Sannomiya
・If Hokushin Kyuko Line was integrated with the Kobe Municipal Subway’s Seishin Yamate Line, itwould allow cheaper fares between the north of Kobe and the centre (Sannomiya and other central
districts). Cheaper fares could provide an economic boost for Sannomiya, a major terminal for ourgroup.

・Given these considerations, we signed an agreement with Kobe City on March 29, 2019, as follows:
In the second half of fiscal 2021, we will transfer Hokushin Kyuko Line’s assets to Kobe City for¥19.8 billion.
・In anticipation of this transfer, we recorded ¥19 billion of impairment loss in fiscal 2019.
・We have significantly mitigated the impact of this impairment loss upon net income attributable toowners of parent. We did so by reducing tax expense; specifically, we recorded deferred tax assets
for the impairment loss as well as for the bad debt allowance pertaining to loans to Hokushin Kyuko
Railway (a consolidated subsidiary), which Hankyu Corporation had already recorded.
・We would see a net cash flow because of the reduced tax expense and the inward cash flow
associated with the transfer.
21

Consolidated Statements of Income(Net income attributable to owners of the parent)(¥ million)

FY2019Results

Income before income taxes

FY2018Results

88,562

101,410

Change-12,847

Reflects the recording of deferred tax assets in relation to
the agreement to transfer of Hokushin Kyuko Line assets

Total income taxes

20,52533,362-12,837

Income taxes—current

19,10428,389-9,285

Income taxes—deferred

1,420

4,972

-3,552

Net income

68,036

68,047-10

Net income attributable to noncontrolling interests

2,560

1,685

+875

Net income attributable to owners of
the parent

65,476

66,361-885

22

Consolidated Balance Sheets
FY2019Results

Net assets

Liabilities

Assets(¥ million)

FY2018Results

Current assets

302,963

290,448

Noncurrent assets

2,163,259

2,114,477

Total assets

ChangeRemarks+12,515 Land and buildings for sale：+3,740
Property and equipment and+48,781 intangible assets:+34,778

Investment securities:+5,818

2,466,223 2,404,926 +61,297

Current liabilities

404,286

406,909-2,623Long-term liabilities

1,146,555

1,131,503+15,052

FY2019Results

FY2018Results

Debt

758,411

767,431-9,020

Bonds

112,000

92,000+20,000

6,644

7,326

-682

877,055

866,758-10,297

Lease obligations

Total liabilities

1,550,842 1,538,413 +12,429

Net income attributable to owners of theparent:+65,476+48,633 Less treasury stock, at cost:-10,153
Payment dividend:-9,896

Shareholders’ equity

853,397804,764

Accumulated othercomprehensive income

31,46532,961-1,496

Non-controlling interests

30,51728,786+1,731

Total net assets
Equity ratio

915,38135.9%

Interest-bearing debt

Change866,512 +48,868
34.8%

+1.1p

23

Consolidated Statements of Cash Flows(¥ million)

FY2019Results

FY2018Results

Cash flows from operating activities

126,035

135,82188,562
54,172-30,542

101,41053,276-26,005

Cash flows from investing activities-116,160-88,351

Purchases of noncurrent assets-137,809
18,252-102,863
21,222-11,171-43,242-10,199-9,896
10,297-10,689-9,360-32,764-551-1,848360
4,588

27,501
1,935
27,58922,530383
27,501

Income before income taxes
Depreciation and amortisation

Income taxes (paid) refunded

Receipt of contributions for construction

Cash flows from financing activities
Purchase of treasury stock
Dividends paid
Decrease (increase) in interest-bearing debt

Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year

Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of year24

《Reference》 Consolidated Statements of Income(¥ billion)[Upper table] Revenues fromoperations[Lower table] Operating income

Total

FY2019Results①

FY2019forecasts(As ofMar.)②

FY2019ChangeForecasts①-②(As of Nov.)③

Change①-③

FY2019Forecasts(As ofMay.)④

Change①-④

FY2018Results⑤

Change①-⑤

791.4 795.0 -3.6

790.0

+1.4

790.0 +1.4 760.3 +31.2

114.9 113.0 +1.9

107.0

+7.9

110.0 +4.9 105.2

+9.7

238.6

239.8

-1.2

241.7

-3.1 236.0

+2.6

43.5

42.2

+1.3

42.9

+0.6

41.6

+1.9

237.3

239.9

-2.6

236.2

+1.1 222.6

+14.7

49.3

47.9

+1.4

48.0

+1.3

41.0

+8.3

126.5

125.4

+1.1

124.5

+2.0 121.1

+5.5

18.8

16.2

+2.6

16.7

+2.1

17.8

+1.0

35.5

34.8

+0.7

34.8

+0.7

34.0

+1.5

1.8

0.7

+1.1

1.3

+0.5

2.1

-0.3

90.0

87.9

+2.1

83.6

+6.4

83.7

+6.3

2.4

1.9

+0.5

2.2

+0.2

2.8

-0.4

64.9

65.1

-0.2

66.4

-1.5

67.2

-2.3

1.2

1.3

-0.1

2.1

-0.9

2.2

-0.1

(Breakdown for each business segment)

Urban Transportation

Real EstateEntertainment andCommunications
TravelInternational
Transportation
Hotels25

《Reference》 Consolidated Statements of capital expenditure(¥ billion)

FY2019Results①

FY2019forecasts(As of
Nov.)

Change①-②

FY2019FY2018 Change
Forecasts Change
Results①-③①-④(As of May)
④

③

②

114.4

127.0

-12.6

108.7

+5.7

86.4 +28.0

Urban Transportation

33.8

39.0

-5.2

39.3

-5.5

35.0

-1.2

Real Estate

62.4

66.1

-3.7

47.3

+15.1

39.9

+22.5

Entertainment and Communications

7.9

10.8

-2.9

9.9

-2.0

7.6

+0.4

Travel

0.8

1.3

-0.5

1.2

-0.4

0.5

+0.3

International Transportation

0.7

0.9

-0.2

1.5

-0.8

0.7

-0.1

Hotels

2.0

2.5

-0.5

2.5

-0.5

2.3

-0.3

Total capital expenditure(Breakdown for each business segment)26

《Reference》 Consolidated Statements of Depreciation and amortisation, EBITDA(¥ billion)

FY2019Results①

FY2019forecasts(As of
Nov.)

Change
①-②

④

③

②

Total Depreciation andamortisation

FY2019FY2018 Change
Forecasts Change
Results①-③①-④(As of May)

54.2

54.5

-0.3

55.8

-1.6

53.3

+0.9

Urban Transportation

27.4

27.8

-0.4

28.5

-1.1

26.7

+0.7

Real Estate

16.6

16.6

+0.0

17.1

-0.5

16.5

+0.1

Entertainment and Communications

7.0

7.2

-0.2

7.3

-0.3

6.8

+0.2

Travel

0.7

0.7

-0.0

0.7

-0.0

0.7

-0.0

International Transportation

0.6

0.7

-0.1

0.6

+0.0

0.7

-0.0

Hotels

2.1

2.2

-0.1

2.2

-0.1

2.1

+0.0

171.4

164.0

+7.4

168.0

+3.4

Urban Transportation

70.8

70.0

+0.8

71.4

-0.6

68.2

+2.6

Real Estate

65.9

64.4

+1.5

65.1

+0.8

57.5

+8.4

Entertainment and Communications

25.8

23.4

+2.4

24.0

+1.8

24.6

+1.2

Travel

2.4

1.4

+1.0

2.0

+0.4

2.7

-0.3

International Transportation

3.0

2.6

+0.4

2.8

+0.2

3.4

-0.4

Hotels

3.4

3.5

-0.1

4.3

-0.9

4.3

-1.0

(Breakdown for each business segment)

Total EBITDA (※)

160.8 +10.5(Breakdown for each business segment)(※) EBITDA=operating income + depreciation expenses + amortisation of goodwill

27

Ⅱ. Summary of the Medium-Term
Management Plan

28

Long-Term Vision（Overall vision）
The slogan for the Hankyu Hanshin Holdings Group’s Long-Term Vision for 2025 (fiscal 2026) is:‘Enhancing line-side areas and expanding fields’
Sustainably enhance corporate value
Enhance daily life
(customer) value
Regarding these socioculturalchanges as business
opportunities, we will provide
innovative products and services
through our business operations.

Enhance social value
Build relationships of trustwith various stakeholders,meet their expectations, andcontribute to society.

Enhance economicvalue
We will strive to maintain andimprove our profitability andfinancial soundness as a topclass private railways
operator.

Umeda and line-side areas
x stock businesses

Tokyo metropolitan area and overseas
markets x stock businesses

Make our railway theabsolute best among the
Kansai networks.
Strategy①

concentrated in Umeda and line-side areas).

flow businesses

Strengthen competitiveness by
Construct a stable revenue base in thoroughly pursuing brandthe Tokyo metropolitan area andoptimisation and differentiation.
overseas markets.
(diversify the portfolio, which is currently
Strategy③
Strategy②Groupwide initiatives,
new business fields, etc.

Make greater use of the Group’s collective strength and develop new
business fields.
Strategy④
The coming age of fullscale population decline

Further technologicaladvances (AI, IoT, etc.)

Economic growthin Asia

Declining birth rate
and aging population

Crumbling infrastructure

Improvements to public transport
Growing numbers of infrastructure (airports, rail andmotorway networks)
overseas visitors

Tightening oflabour market
Concentration of
population into
urban areas

Opportunity for Kansai to develop its position as gateway for Asia and the wider world

29

Long-Term Vision（Four strategies）
Umeda Line-side
areas
・

Tokyo
metropolitan
area overseas

・

Umeda and line-side areas x stock businesses
Make our railway the absolute best among the Kansai networks.
Strategy①
We aim to increase the resident and non-resident population of lineside areas. To this end, we will channel into these areas the dynamismof the Tokyo-Nagoya-Osaka axis and the power of Asia and otherregions of the world, attract new industries and cutting-edge
technologies ahead of other companies, and support efforts to develop
thriving local communities.

Flow business
Strengthen competitivenessby thoroughly pursuing brand
optimisation anddifferentiation.

Strategy③
Tokyo metropolitan area and overseas markets x
stock businesses
Construct a stable revenue base in the Tokyo metropolitan area
and overseas markets(diversify the portfolio, which is currently concentrated in Umeda
and line-side areas).
Strategy②
Our property portfolio is currently concentrated in Umea and line-side
areas. To compensate for downsizing in the Kansai area, we will
diversify our property profile by acquiring additional assets including
rental property in Tokyo’s large market and in overseas markets thatare set to grow.

Stock（Use assetes）
Group-wide initiatives, new business fields, etc.

Thoroughly optimise the Hankyu
Hanshin brand value anddifferentiate the products andservices from the competition soas to strengthen competitiveedge and achieve further
business expansion.

Flow（non-assets）

Make greater use of the Group’s collective strength and develop new business fields.
Strategy④
In addition to pursuing Group-wide initiatives, we will introduce cutting-edge technologies into existing businesses,
venture into new business fields, and thereby provide culturally enriched and innovative lifestyle options.
30

Long-Term Vision（Management Indicators）
We will pursue the four strategies with a view to achieving the following targets as of2025 (fiscal 2026). Achieving these targets will keep us on course for maintaining atleast the current levels of operating income in the 2040s, when demographic changes
will have had a major impact on business.

Profitability

Financial soundness

Management Indicators

Targeted figure for 2025
(FY2026)

operating income¥120 billion

EBITDA¥200 billion

Interest-bearing debt
/EBITDA ratio

Between5 and 6 times

・Ensure that we will be one of the most profitable private railway operators
in 2025 (fiscal 2026).
・While accelerating growth investment, ensure that we remain one of themost financially sound private railways operators.
31

Placement of Medium-Term Management Plan
Mission : What we try to achieve
By delivering “Safety and Comfort” and “Dreams and Excitement” ,we create satisfaction among our customers and contribute to society.

Values : What is important to us
Everything we do is for the customer. That’s where it all
starts.
Sincerity
Gain customers’ confidence by always being sincere.
Foresight &With our pioneer spirit and flexible thinking, we create a new
Creativity
value.
Respect for People Everyone is absolutely invaluable to the Group.
Customers FirstGroupManagement
Philosophy

Long-Term
VisionThe kind of company we hope to be as well as the basic approachand strategies for achieving this vision.

Four-year plans and action plans that contribute to theLong-Term Vision
Medium-Term
Management
Plan

The current plan (fiscal 2019–2022) represents the first half of the LongTerm Vision, in which fiscal 2022 is the interim target year. During theterm of this plan, we focus on establishing strategic direction.

As part of an annual rolling plan, we set out action plans with a view to achieving our LongTerm Vision. In the run-up to fiscal 2026, the cumulative impacts of these actions will bring us
closer to our vision of the company we hope to be in the long-term.
32Current operating income levels (FY2016-FY2018)
・From fiscal 2016 through fiscal 2018, operating income trended a little abovethe ¥100 billion mark in real terms, discounting special factors such as gainon the disposal of land for large-scale commercial facilities.
(¥ billion)

110.3
110
Impact of special
factors such as gainon the disposal ofland for large-scalecommercial facilities

104.1

105.2

100

operating income
営業利益

91.8

94.0

Real operating income
level(Approx.¥100 billion)

operating income(after adjusting for special factors)
営業利益(特殊要因調整後)

90

FY2014FY2015

Above the ¥90 billion mark,discounting special factors

FY2016FY2017FY2018

Above the ¥100 billion mark,discounting special factors
33

Framework of the Medium-Term Management Plan
・Our long-term target for operating income is ¥120 billion by fiscal 2026. We will focus
on raising the current income level from ¥100 billion so that we can soundly achieve theinterim target (the target for fiscal 2022) of ¥110 billion.
・We will allocate resources to achieve these goals, focusing on growth investments
linked to the following four strategies.

Four strategies～Business strategies related to the Long-Term Vision～①Further strengthen the stock businesses in the Umeda and line-side areas (e.g. railways, realestate leasing, media and communications, hotels)②Accumulate stock in the Tokyo metropolitan area and overseas markets③Increase competitiveness of flow businesses (real estate sales, sports, stage, information services,travel, and international transportation)④Make greater use of the Group’s collective energies and venture into new business fields

Financial policy• As part of our efforts to achieve our Long-Term
Vision, we will focus on growth investments
under strategies ① to ④ while aiming to further
increase operating income and EBITDA.
• We will continue to maintain our financial
soundness. (Interest-bearing debt/EBITDA ratio
will be prioritised over interest-bearing debt as abenchmark for financial soundness.)• As for returns to shareholders, we will deliver
steady dividends while aiming for a targeted total
payout ratio.

Forward-looking investment
While striking a balance with financial soundness, we willprioritise growth investment under strategies ① to ④.

Maintaining
financialsoundness
Prioritise interest-bearing
debt/EBITDA ratio as a benchmark
for financial soundness.

Returns toshareholders
Steady dividends

34

Growth process in run-up to fiscal 2026 (hypothetical)
・Investments in the stock businesses (Strategies ① and ②), excluding those foracquiring functioning property, will take some time to yield returns.
・Likewise, investments for developing new business fields (Strategy ④) will takeconsiderable time to establish new businesses.
Fiscal 2026
Final year of
Aim to raise operating income byLong-Term¥10 billion by fiscal 2022 primarily
VisionFiscal 2022
in flow businesses(Strategy ③)¥120 billion
Interim target year
¥110 billion＋¥10 billion
Fiscal 2016–2018
Real operating income
level, discounting
special factors
Approx.¥100 billion

increase in flow businesses
investments in stockbusinesses
Current Medium-Term Management
Plan(fiscal2019–2022)＋¥10 billion(fiscal2023–2026)

Over the second half of the Long-Term Vision (fiscal 2023–2026), we expect to seea further rise of ¥10 billion in operating income. This increase will be driven
primarily by the returns on investments in stock businesses (e.g., Umeda 1-1
Project). Other factors will include a further operating income increase in flowbusinesses and contributions from the new business fields we will develop.
35

Key actions under the four strategies
Strategy① Further strengthen the stock business in the Umeda and line-side aeras
Increase the value of ourassets in the Umeda area

‧ Strategically rebuild held assets to enhance long-term value of the holdings‧ Help enhance the area as a whole through area management, urban
promotion, and by developing and managing sites for generating new businessand industry

Invigorate key line-side bases‧ Drive forward development projects in key line-side areas‧ Invigorate communities through station-centred community development

Construct new rail links to
improve the transport network‧ Link our lines with Shin-Osaka Station, Kansai International Airport, and Osaka
International Airport to increase convenience and accessibility

Capture inbound demand

・Attract more tourists to Umeda and line-side areas and encourage them to use
Group facilities/services to maximize Group earnings

Strategy② Accumulate stock in the Tokyo
metropolitan area and overseas markets
Acquire more stock in the Tokyo metropolitan area
・Drive forward new development projects and acquire
functioning properties in central Tokyo’s five wards while
monitoring market trends

Open more hotels in the Tokyo metropolitan area
Develop plans for acquiring stock (real-estate)overseas

Strategy③ Increase competitiveness of flowbusiness (real estate sales, sports, travel, andinternational transportation)
Condominium business in Japan and overseas
Develop the information services business

Raise the profitability of the Travel Business segment
Increase handling volume in the International
Transportation Business segment

Strategy④ Make greater use of Group's collective energies and venture
Expand S-POINT(a common point service for the Kansai area)

Venture into new business fields

36

Progress in fiscal 2019
■Making headway in Strategy ③ and the other three strategies①• Completed phase 1 of Umeda 1-1
Project• Reopened therefurbished/extended Ebista
Nishinomiya• Started participating in Umekita Phase II
Development Project• Opened Hankyu Nishinomiya Gardens
Gate Building• Confirmed new hotel location in Yodobashi Umeda Tower(tentative name)• Established strategy to capture inbound demand (e.g., provide free wi-fi, introduce tourist trains)②• Completed PILOT Hankyu Hanshin Green Building (Kyobashi 2-6 Redevelopment Plan)• Advanced plans to acquire rental properties in ASEAN③【Real estate
sales 】

Rapidly extended joint undertakings in ASEAN (projects cover a cumulative total of >26,000
units, many of which are in Thailand and Vietnam)【Information
services】

Obtained large orders related to transport systems
Acquired Nihon-Protec【Travel】

Advanced structural reform (developed TV shopping as a third channel, after newspaper andonline ads, for winning new customers; bought more buses to increase day-return bus tours)【International
Strengthened logistics (opened new logistics centres in India and America)
Transportation】 Increased handling volume in air transport④

・Launched S-POINT in Kansai with 7-Eleven (May 2018) and Kansai Supermarket (November 2018)
・Ventured into agribusiness

During the rolling planning, we reviewed the Medium-Term Management Plan in light of the above
progress and business trends. The reviewed plan is referred to herein as the “current plan.”37Some organizational changes (April 2019)
Organizational changes in the core business Entertainment and Communications
Communication, Media and Others is one of the units in the core business Entertainment and Communications. The unit itself
comprises three sub-units (information services, broadcast and communications, and safety and education businesses), eachof which has grown competitive over the past 12 years (since fiscal 2008), contributing significantly to operating income.



Under the current plan, communication, media and others was upgraded to a separate core business in fiscal 2020. The
purpose of the change was to empower information services to play a greater role in flow business development and toenhance the earning power of communications and media as a whole. Now a core business, Communication, Media and Othershas been renamed “Information and Communication Technology”
to more clearly describe the nature of its operations.
【現状】【2019年4月以降】

Entertainment

Entertainment and Communications
SportsCore business renamed・Information services
・Broadcast andCommunications
・Safety and Education

Sports

Stage

Stage

Communication, Mediaand Others

Upgraded toseparatecore businessInformation andCommunication Technology

From April 2019: A seventh core business in the six core companies establishedHankyu Hanshin Holdings
Urban
Transportation

Real Estate

Hankyu Corporation
Hankyu Hanshin
Properties

Entertainment

Information andCommunication
Technology

Hanshin Electric Railway

TravelInternational
Transportation

HotelsHankyu Travel
International

Hankyu Hanshin
Express

Hankyu Hanshin
Hotels38

Operating income trends in current plan・As the graph below shows, operating income has fluctuated in recent years, reflecting
one-off factors (special factors) such as natural disasters and disposal of land for large-scalecommercial facilities. If we exclude these factors, we see that operating income has followed asteadily ascending trajectory, reaching high above the ¥100 billion mark in fiscal 2019.
・We aim to maintain this steady rise in base income so that we reach the fiscal 2022 target of¥110 billion as part of our effort to achieve the operating income target of ¥120 billion by
fiscal 2026.
Current plan
Current plan (after excluding special factors)

114.9(¥ billion)

110.3

110.0
107.0

110.0

104.1

105.2

100.0

94.0
90.0
FY

2015

2016

2017

2018

2019

2020

2021

2022

39

Cash flows during current plan (estimates)
During the current plan, we expect EBITDA-measured cash flows of ¥680
billion.On the other hand, we expect total outgoing cash flows of ¥940 billion asa result of actively investing toward future growth. This will leave a shortfallof ¥260 billion; we will cover this shortfall with additional borrowing.
【FY2019～2022 Hypothetical cumulative cash flow for four-year period】
Cash inCash out(¥billion)
Strategic investment
framework 50

Growth investment (forachieving the Long-Term
Vision) 330

EBITDA 680

Portion transferred fromstrategic investment 50

Investment in maintenanceand renewal of existing
infrastructure & etc.250

Capitalinvestment(including
lending)630

Cash out
total
940

Net increase in for-saleproperty and equity 70

Return to Shareholders 80
Additional borrowing,
gain on sales 260

Interest expense, tax payment,
etc. 160
40

Capital investment (including lending) in fiscal 2019-2022
Capital investment (including lending) in fiscal 2019-2022 is expected to total approx. ¥630 billion (+¥20 billion compared to the previous plan*)• From the strategic investment framework of ¥100 billion (for large-scale projects, M&A activities,etc.), ¥50 billion has already been earmarked for investing in the Long-Term Vision, and we anticipate¥10 billion extra in growth investments compared to the previous plan.
• The extra ¥10 billion will help us maintain and renew existing infrastructure and meet the growing*As announced on May 23, 2018societal demands for comfort and safety.

¥630billion¥610billion
Strategic investment
framework¥100billion
Growth investment(for achieving theLong-Term Vision)¥270billion（Approx.¥70billion
per year）
Investment inmaintenance andrenewal of existing
infrastructure¥240billion（Approx.¥60billion
per year）

Previous plan
FY2019～2022
for four-year period

Increase of¥10 billion
frompreviousplan

Increase of¥10 billion
frompreviousplan

Strategic investment
framework¥50billion
Growth investment(for achieving theLong-Term Vision)¥330billion（Approx.¥80billion
peryear） from
Portiontransferredstrategic investment¥50billion

Investment inmaintenance andrenewal of existing
infrastructure¥250billion（Approx.¥60billion
per year）【Breakdown of Growth investment ¥330billion】

Strategy③Flow business andStrategy④New business fields
Approx.
10％(Please see pages 58
to 65)

Approx.

20％

Approx.

70％

Strategy②
Tokyo metropolitan area
and overseas markets x
stock businesses

Strategy①
Umeda and line-side
areas x stockbusinesses

Current plan
FY2019～2022 (Please see pages 55 to 56) (Please see pages 49 to
54,56 to 57)
for four-year period
41

Returns to Shareholders■Shareholder Return Policy
We aim to deliver steady dividends to shareholders, as measured by a total payout ratio of
30%, and steadily acquire treasury stock, while working to enhance our operating foundation.

■Regarding dividends of surplus for fiscal 2019, we will deliver annual dividend per shareof ¥40 and cap treasury stock acquisitions at ¥9.8 billion.
■Given our recent stable performance and progress in the Medium-Term Management
Plan, we will increase the level of shareholder returns in two ways:- We will raise the annual dividend per share from ¥40 to ¥50- We will cap our treasury holdings at 5% of total outstanding shares and dispose of any holdings thatexceed this cap.
<Reference> Formula for calculating total payout ratio
Total payout ratio of FY[N](％)=
Acquisition of treasury stock(Total dividend of FY[N])+(Acquisition of treasury stock in FY[N+1])(Net income attributable to owners of parent in FY[N])Total dividend

20
15
10
5
0

30※2

30※2

6.3

7.6

7.6

FY2013

FY2014

25

※2

8.7※2
35

8.8

9.1

Dividend per share(right axis)(forecasts
60 )

10.0

9.8

40

40※1

9.9

9.9

35

8.8

× 100

50

(Scheduled)

We will deliver a
total payout ratioof 30% and
40annual dividend
per share of ¥50,
and acquire
20 treasury stock.

0
FY2015FY2016FY2017FY2018FY2019FY2020※1 Subject to shareholder approval at the General Meeting of Shareholders on June 13, 2019※2 The Company conducted a 1-for-5 reverse stock split with an effective date of 1st August 2016. The per-share annual dividends for fiscal years up to andincluding fiscal 2016 reflect the stock split.

42

Fiscal 2026 management indicators outlook
FY2019Results

FY2020
Forecasts

FY2022
Forecasts

Operating income¥114.9billion¥107.0billion¥110.0billion¥120.0billion

EBITDA※1¥171.4billion¥167.0billion¥180.0billion¥200.0billion

Interest-bearing debt

¥877.1billion¥950.0billion¥1,060.0billion－

Interest-bearing debt
/EBITDA ratio

5.1times

5.7times

5.9times

between 5 and6timesD/E ratio※2

1.0times

1.0times

1.0times－¥65.5billion¥67.0billion¥70.0billion

－

7.6%

7.4%

7%

－

Net interest-bearing
debt※3¥848.2billion¥925.0billion¥1,035.0billion－

Net interest-bearing
debt/EBITDA ratio

5.0times

5.5times

5.8times－

Net income attributableto owners of the parent

ROE

FY2026(The company wehope to be)(Reference)※1 EBITDA=operating income + depreciation expenses + amortisation of goodwill※2 D/E ratio＝interest-bearing debt / equity※3 Net interest-bearing debt=interest-bearing debt - cash and deposits

43

《Reference》 Trends in operating revenues and operating income
Revenues fromoperations

Operating income

Ordinary income

owners of the parent

752.3
683.7

653.3 638.8 649.7

90.7

682.4 679.2 685.9

87.9
77.8
70.1

74.9

73.8
64.7

74.9

81.2

94.0

20.6
0.6

10.8

810.0

107.0

104.1 105.2
100.6

103.8

110.5

105.0

85.6

65.4
50.4

760.3

791.4

114.9

104.5

70.0

57.4

736.8

707.4
110.3

91.8

(¥ billion)

Net income attributable to

71.3

66.4

65.5

67.0

54.2

46.5

39.3

39.7

46.4

18.1

※

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020※ Includes Department Store Business (consolidated up to the first half of fiscal 2008)

forecasts(Note) As of fiscal 2017, the presentation of revenues from operations of the International Transportation Business has changed from net togross amounts.

44

Blank page45

Ⅲ. Specific Projects in the Medium-Term
Management Plan (FY2019–FY2022)

46

Outlook for Kansai area
●Kansai is set to receive increasing numbers of inbound tourists in connection withinternational events that will be held in Osaka and elsewhere in the region, including the
G20 Summit and Rugby World Cup this year, the World Masters Games in 2021, and theWorld Expo in 2025.
●Meanwhile, plans are underway to lay new rail lines that will improve public transport
access in Kansai and thus increase the region’s potential.
We will accelerate efforts to capture the increased inbound demand.
【Inbound demand trends】（※）Red text indicates projects we engage in（million）

60.0【Key new routes】

Kansai area
Japan-wide

60 million

50.0★G20 Osaka Summit、
Rugby Worldcup 2019

40.0

40 million
30.0

20.0

10.0

★World Masters Games
2021 KANSAI★Completing all constructionof Umeda 1-1 project★World Expo 2025
★Opening of Umekita
Phase II area
Opening of
Naniwasuji Line★
Opening of “Linear
Chuo Shinkansen”★

0.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 列1 2025 2030 列347

Schedule for the Main Projects of the Business Strategies① and ②（FY） 2018

2019

2020

2021

2022

2023

Chayamachi 17-banchi project

Extension of Ebista Nishinomiya, acommercial facility adjacent toHanshin Nishinomiya

Strategy①

Hankyu Nishinomiya Gardens / Gatebuilding
Fukushima 5-Chome and 7-Chome
joint development project
Ebie 1-chome development plan
Hotel Hankyu RESPIRE OSAKA
Project to relocate Takarazuka Hotel

Project to construct Saito Moegi
Distribution Centre (provisional
name)
Project to rebuild Kobe Hankyu
Building’s east wing and renew its
west wing

Intended start of service●Complete phase●Complete phase Ⅱ construction

I construction
Commencement of phase II(All construction to be completed by spring 2022)●Opened● Opened● Opened● Scheduled start of service●(Scheduled time of condominium completion)● Scheduled start of service● Scheduled start of service●Completion of construction work in B zone
●Completion of construction work in A zone
●Scheduled time of construction completion●
Scheduled time of advance openings

Umekita Phase II Development
Project

Strategy②

Project to open remm+ Ginza
PILOT Hankyu Hanshin Green
Building (Kyobashi 2-6
Redevelopment Plan)
CO・MO・RE YOTSUYA(Redevelopment Project for Area in
Front of JR Yotsuya Sta.)
Ginza 3-chome Project

2025

●

Kita-Osaka Kyuko Railway Line
Extension Project

Umeda 1-1 Project2024● Scheduled start of service●Scheduled start of service●Scheduled time of construction completion●Scheduled time of construction completion
48

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas①

Kita-Osaka Kyuko Railway Line Extension Project【Development plan summary】
・Extension distance:

MinohKayano Sta.

2.5 km, from Senri-Chuo Sta. to Minoh-Kayano Sta.

・New stations:

Approx.
1.1km

Minoh-Semba Handaimae Sta., Minoh-Kayano Sta.
Act on Rail Tracks

National Route
171

・Estimated project cost: ¥65.0 billion
・Demand: 45,000 people per day【Business scheme】
・Developer:

Kita-Osaka Kyuko Railway Co., Ltd. and Minoh City (development of infrastructuralcomponents between Minoh-Semba Handaimae Sta. and Minoh-Kayano Sta.)・Operator: Kita-Osaka Kyuko Railway Co., Ltd.
・Funding programme: Social capital development grant・Portion to be borne by Kita-Osaka Kyuko Railway Co., Ltd:

MinohSemba
HandaimaeSta.

¥11.0 billion; Amount commensurate with profits【Schedule】

December, 2015: We have obtained a license for railway business and a

National Route 423（Shin-midosuji）

SenriChuo
Sta.

Railway Business Act

Approx.
1.4km

charter for railway track operations

December, 2016: Commencement of construction
FY2024: Intended start of service（Postponed from end of fiscal 2021）
SenriChuo
Sta.

Approx. 1.4km

Underground section

MinohSemba
Handaiｍae
Sta.

Approx. 1.1km

MinohKayano Sta.

National Route 423 Elevated section(Shin-midosuji）

National
Route 171

49

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas②

Umeda 1-1 Project (Name of the building：Osaka Umeda Twin Towers South)【Project summary】
Location

1-1 Umeda, Kita-ku, Osaka

Site area

Approx. 12,200 ㎡*

Total floor space

Approx. 260,000 ㎡

Number of floors

38 floors above ground and 3 below groundPurposePlanned total
investment
Construction
completion【Conceptual illustration of the building exterior】

Department store, offices, halls, etc.
¥89.7 billion
Spring 2022

* Including 750㎡ of road between Dai Hanshin Building and Shin Hankyu Building【Schedule】
July 2015

Begin phase I construction

April 2018

Complete phase I construction* (Shin Hankyu
Building and Dai Hanshin Building East Wing)

June 2018

Partial opening of new department store.
Phase II (west wing of Dai Hanshin Building):
Start demolition work

Spring 2019

Phase Ⅱ (begin phase Ⅱ construction)

Autumn 2021

Complete phase II construction (newdepartment store part) and fully open new
department store

Spring 2022

Complete all construction and open offices* The project is scheduled to be completed in spring 2022. In that year, Umeda Hankyu
Building, which houses Hankyu Department Store (Hankyu Umeda Main Store), will berenamed ‘Osaka Umeda Twin Towers North’, and the two adjacent buildings will bechristened the ‘Osaka Umeda Twin Towers’.

【Phase I】【Phase Ⅱ】

4
2

1

3

5

①Dai Hanshin Building East Wing
②Shin Hankyu Building③Dai Hanshin Building West Wing
④Dai Hanshin Building West Wing(under construction)⑤Phase I (businesses operating)
The rentable area is smaller than that planned during phase I.

50

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas③

Umekita Phase II Development Project【Background】
・JV9, which includes Hankyu Corporation, and Hankyu Hanshin Properties Corporation entered a consortium with fourother firms. The consortium submitted a bid for the Umekita Phase II Development Project in a public tendering processorganized by the Urban Renaissance Agency (a semipublic Independent Administrative Institution). The consortium won
the bidding.
・The core theme of the project is to integrate green space with innovation. Building on the first phase of the project(which culminated in the opening of Grand Front Osaka), the consortium is working to achieve this theme and set a
new standard in urban design for Kansai and even the whole of Asia.

【Outline of plan】<Private-sector zone specifications>
Zone

North zone

South zone

Site area 15,726㎡

30,429㎡

Total floor
146,900㎡
space

374,660㎡

Facilities

Innovation facilities, hotel, MICE facilities, offices,
hotels, commercial
residence, others
facilities, residence, others<Urban open space specifications>
Site area

45,000㎡

Total facility
12,500㎡
floor area
Facilities

Museum, experiential learning facilities, roofed open
spaces, restaurants, shops, others<Schedule>
Phased landtransfer

From September 2020

Constructionin privateFrom October 2020sector zones

Advance
openings※

Around summer 2024

※For some private-sector zone facilities andpart of the urban open space
How the area as a whole will look once completed(based on the bid made in May 2018; subject to change)

51

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas④

Give commercial facilities in the Umeda and line-side areas a facelift
In order of
openingdate

Chayamachi 17-banchi project

Location

Chayamachi, Kita-ku, Osaka

Wajocho,Tanakacho, Nishinomiya,
Hyogo

Site area

Approx. 440㎡

Approx. 5,700㎡（Extended area） Approx. 3,000 ㎡

Total floor
space

Approx. 2,800㎡

Approx. 10,000㎡（Extended area）

Approx. 11,600 ㎡

Number offloors

8 floors above ground and1 below ground

3 floors above ground

10 floors above ground and1 below ground

Extension of Ebista
Nishinomiya, a commercial
facility adjacent to Hanshin
Nishinomiya

Commercial facilities

Hankyu Nishinomiya Gardens
Gate building

Takamatsucho, Nishinomiya,
Hyogo

Purpose(global flagship store
Commercial facilities「MIZUNO OSAKA CHAYAMACHI」)

Commercial facilities, service
facilities for education andchildcare

Scheduled
opening

April 20, 2018

November 21, 2018

October 29, 201852

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas⑤
In order of
opening date

Fukushima 5-Chomeand 7-Chome joint
development project

Ebie 1-Chome
Development Plan

Project to relocate
Takarazuka Hotel

Plan site

Location

5-chome Fukushima,
Fukushima-ku, Osaka

1-chome Ebie, Fukushima-ku, 1-chome Sakaemachi,
Osaka
Takarazuka, Hyogo

Site area

Approx. 2,600㎡(※)

Approx. 27,900㎡(※)

Total floor
space

Approx. 11,000㎡(※)

Number offloors

12 floors above ground and1 below ground

Approx. 52,200㎡(※)（condominium）
20 floors above ground（condominium）
Number of units:566units(※)

Purposehotel(expected to be Hotel
Hanshin Annex Osaka),
supermarket(expected to be
Hankyu Oasis)condominium(Geo Fukushima
Noda The Marks),
commercial facilities（land tolet）rooms (Approx. 200rooms)
party hall (4 halls)
restaurant (4 facilities)

Scheduled
opening

May 15, 2019

September 2019

Around spring 2020

(Condominium on sale)

Approx. 12,300㎡
Approx. 23,000㎡

5 floors above ground and 1
below ground※：Includes the portion belonging to our partner.

53

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas⑥
In order of
opening date

Project to construct Saito Moegi
Distribution Centre (provisional name)

Project to rebuild Kobe
Hankyu Building’s east wing
and renew its west wing

A zoneB zoneLocationIn the Sanroku Line area of the eastern section of Ibaraki
City’s International Culture Park ‘Saito’ (See page.91)

4-chome Kanocho, Chuo-ku, Kobe

Site area

A zone：Approx. 51,000㎡(※)
B zone：Approx. 16,000㎡(※)

Approx. 7,100㎡

Total floor
space

A zone：Approx. 125,000㎡(※)
B zone：Approx. 32,000㎡(※)

Approx. 33,300㎡

Number offloorsEast wing：29 floors above ground and3 below groundWest wing：1 floor under railway station

A zone：6 floors above groundB zone：4 floors above ground(some sections with 2 floors above ground /basement level)

logistics facilities

PurposeScheduled
opening（A zone：multitenant logistics facility［High-tech facilities designed to be used by multiple tenants］、
B zone：BTS logistics facility［Facilities built to suit a particular tenant’s specifications］）

hotel(expected to be Hankyu Hanshin
Hotels-operated hotel), offices, commercial
facilities, railway station

A zone：FY2022(scheduled completion)
B zone：FY2021(scheduled completion)

Around spring 2021
(scheduled completion)※：Includes the portion belonging to our partner.

54

Strategy②:Accumulate stock in the Tokyo metropolitan area and overseas markets①
In order of
opening date

PILOT Hankyu Hanshin
Green Building (Kyobashi 2-6

CO・MO・RE YOTSUYA

Revelopment Plan)

Redevelopment Project)

Ginza 3-chome Project(Yotsuya Station District※1

Location
Site area
Total floor
space

2-chome Kyobashi, Chuo-ku, 1-chome Yotsuya, ShinjukuTokyoku, Tokyo
Approx. 1,450㎡(※2)
Approx. 17,900㎡(※2)

3-chome Ginza, Chuo-ku,
TokyoApprox. 310㎡

Approx. 17,000㎡(※2)

Approx. 139,600㎡(※2)

Approx. 2,900㎡

31 floors above ground and3 below ground

11 floors above ground and1 below groundNumber of 14 floors above ground andfloors1 below groundPurposeoffice, commercial facilities,
hotel(remm Tokyo Kyobashi),residence, educationalcommercial facilities
office, commercial facilities
services, public good, parking

Scheduled
opening

April 3, 2019

Around early 2020

Around spring 2020

(Full opening)(scheduled completion)(scheduled completion)※1：Image of completed construction, provided by the Urban Renaissance Agency (September 2016)※2：Includes the portion belonging to our partner.

55

Strategy①②：New hotel openings in fiscal 2019①
remm Tokyo Kyobashi

Hotel Hanshin Annex Osaka

remm plus Ginza

Opened on April 3, 2019

Opened on May 15, 2019

Opens on 24 December, 2019

Guest room

Lobby

Guest room

Restaurant‧ Opened in PILOT Hankyu Hanshin
Green Building‧ Opened in Fukushima 5-Chome and 7Chome joint development building‧ Remm’s fourth opening in Tokyo
metropolitan area
Location:2-chome Kyobashi, Chuoku, Tokyo*Close to Kyobashi Station on theTokyo Metro Ginza Line

‧ A new-style business hotel underunified management with nearby Hotel
Hanshin Osaka
Location:5-chome Fukushima,
Fukushima-ku, Osaka*6 minutes walk from Fukushima
Station on Hanshin Main line

Number of rooms:272rooms

Number of rooms:254rooms(Single 73rooms, Double 134rooms,
Twin 65rooms)(Double 125rooms, Twin 119rooms,
Triple 10rooms)‧ This is the first location of Remm
Plus (styled as ‘remm+’), which
follows the remm concept but
offers more guestrooms and agreater level of comfort.
Location:8-5-4 Ginza, Chuo-ku,
Tokyo*4 minutes walk from Shimbashi
Station on JR and Tokyo Metro
Ginza Line
Number of rooms:238rooms(Double 154rooms, Twin 84rooms)

56

Strategy①②：New hotel openings in fiscal 2019②
Hotel Hankyu RESPIRE OSAKA

Opens in November 2019

‧ We will open a 1,000-room hotel in Yodobashi Umeda Tower(tentative name), which is developed by Yodobashi Holdings, Inc.

Appearance‧ Targeting inbound tourists, the hotel will chiefly comprise rooms
for multiple guests (twin rooms, triple rooms, etc.)

Front desk, Lobby
Location

Ofukacho, Kita-ku, Osaka(North of JR Osaka Station)

Plannednumber of
guestrooms:
1,032

DoubleStandard Twin
Standard Triple
FourthNumber offloors35 floors above ground and 4 below
ground414rooms
399rooms
171rooms
48rooms

12–35F Guestrooms
9F Lobby & front desk, banquet
hall, cafes & restaurants
2F Entrance
1F Driveway, Entrance

Guest room

「RESPIRE」
RESPIRE combines the meanings of the words“rest,” as in to have a rest, and “inspire,”

as in to have one’s senses stimulated andbe filled with vitality. RESPIRE also means“to breathe.”Hotel Hankyu RESPIRE aims to offer you a place where
you can relax comfortably and also be revitalized for the

next day, giving you the sensation of having taken a deep
breath of fresh air.

57

Strategy③:Increase competitiveness of flow businesses①

Real estate sales business in domestic markets【Real estate sales[lands and housing] 】· Continue to develop and strengthen the urban detached house businessas a pillar of the residential real estate sales business.
· In addition to sales performance, make efforts to enable steady businessexpansion in the Tokyo metropolitan area.
［Hapia Garden· Focus long-term residential development efforts on Takarazuka Yamatedai ［Hapia Garden
Tamagawa Gakuenmae］
Kobe Takamaru］
district and International Culture Park ‘Saito’.
(Houses on sale from November 2018) (Houses on sale from February 2019)【 Real estate sales[condominium] 】· Continue to use strict criteria for selecting properties to acquire. Advance business steadily while carefully monitoring
the impacts of the consumption tax hike and the high level of construction expenses.
· In the Tokyo metropolitan area, strengthen the system for acquiring land and gradually expand business, bringing thenumber detached house sales to the level of those in the Kinki area (approximately 800 units a year).
· Accordingly, we will participate in projects with a medium to long-term focus (e.g., urban redevelopment, remodelling
projects) and expand the business mix, such as developing rental condominiums and selling them at a profit.

Total number of units
Number of Units※1

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019

1,064

680

1,210

1,548

1,356

1,374

1,302

1,087

1,159

1,114

Major properties sold in fiscal 2019※2

FY2020forecast
approx.

1,550

・Geo Hankyu Minase Heart square (Mishima-gun,Osaka) 315units
・Geo Kyoto Katsuragawa（Minami-ku,Kyoto）98units
・Geo Shinjuku-wakamatsucho (Shinjuku-ku, Tokyo)123units

Major properties to be sold in fiscal 2020※2
・Geo Fukushima Noda The Marks（Fukushima-ku, Osaka）566units
・Geo Kobe Nakayamate-dori (Chuo-ku, Kobe）256units
・Geo Kashiwanoha Campus（Kashiwa, Chiba）226units※1：Figures include units in shared buildings that the Group partly owns.
※2：Figures indicate total number of units.

［Geo Fukushima Noda
The Marks］［Geo Shinjuku-wakamatsucho ］(Sold in May 2018)(Scheduled to be soldin September 2019)58

Strategy③:Increase competitiveness of flow businesses②

Real estate sales business in overseas markets· To help our real estate sales business achieve a certain level of profitability in overseas
markets as early as possible, we will accelerate efforts to promote our residential realestate sales business in ASEAN states.
Comulative total of overseas
Number of Number of Units
residential real estates sales :Projects
More than 26,000 units
Vietnam5
over 11,000
Philippines
Thailand11
over 9,000[house・townhouse]
Philippines
3over 3,000・Ideshia Dasmariñas
Indonesia
2 approx. 1,800(house:Total approx.1,100 units)(townhouse:Total approx.700 units)
Malaysia
1
approx. 850
Thailand [condominium]
・Niche Mono Ramkhamhaeng(Total approx. 1,700units)
and others

Vietnam[condominium・house・townhouse]
and others

・AKARI CITY
(condominium: Total approx.5,200units)

Malaysia[condominium]
Indonesia[house・condominium]

and others

59Strategy③:Increase competitiveness of flow businesses③
Information services business· The market for the information services business is expected to expand significantly. Accordingly, to help the business grow,we will make maximal use of our expertise and unique model to expand our market share and develop new business fields.

①Focus on promising fields
Fully leveraging our well-honed multi-vendor solutions※1 and one-stop services※2, we will accelerate efforts
to develop business in promising fields, such as building maintenance, transport systems, Internet solutions,and healthcare, and thus increase our market share.

※1:This refers to our ability to combine products from different companies to create efficient systems.
※2:This refers to our spectrum of services from system development to operation/monitoring/maintenance.
（Accomplishment）（Examples of products）(Camera on a
(Camera on a limited『Installed bus control system in Busta『Onboard CCTV』
commuterservice)express service)
Shinjuku bus terminal』
There is a mounting(April 2016)
impetus for railway
companies in Japan toinstall onboard camera
systems to tackle risingtrain crime and ensure
security during Tokyo 2020.

DVR unit

Camera②Extend business operations in Kanto and Chubu area

Building on our track record of providing solutions in the Kansai area, we will step up efforts to expand
business in the Kanto area (a larger market) while also making inroads in the Chubu area.
（Accomplishment）『Acquired Nihon-Protec』(December 2018)
Based in Kansai area, Nihon-Protec has an impressive track record in contracted system development. The acquisitionof the company will help us expand our business.

③Use cutting-edge technology to promote new businessesRegarding pioneering technologies like AI and IoT as opportunities, we will actively incorporate technologies
from outside (such as by partnering with venture businesses) where we lack the necessary technologies
ourselves, and use the technologies to develop new solutions services.
60

Strategy③:Increase competitiveness of flow businesses④
Safety / Education business【Safety initiatives(Mimamorume）】 (End of March, 2019)
Since its launch, the service has steadily increased subscriptions and it now has around 240 thousand subscribers(+40 thousand subscribers from previous year). This success is partly because of the high demand for child safety.
Another reason is that parents find it reassuring to know that, as a group involved in public transportation, we arevery community-minded.
School commute app (an email is automatically sent when the student passes the school gate)
Number of schools that ordered app：approx. 1,250 schools （+162 schools from previous year）

Kindergarten attendance app (used to manage children’s safety andmanage number of hours in kindergarten)
Number of kindergartens that ordered app：approx. 140 kindergartens (+27 kindergartens from previous year）

Safety monitoring app (the app uses a network※ of cameras, sensors,and parents/carers to track the location of children or elderly people)
We launched the service in Itami and have now introduced it in Nagaokakyo, Daito, Kakogawa, andparts of Kobe. We will introduce the service in parts of Tokyo’s Adachi ward in fiscal 2020.

Mimamorume GPS (a service that protects children and the elderly)
Municipalities that have introduced the service:approx. 50 municipalities
Subscribers：approx. 10,000 subscribers (+approx. 2,000 subscribers from previous year）【Education initiatives（ProgLab）】 (End of March, 2019)
In April 2016, we launched an educational programme for robot programming(for seniors down to junior high school students).
We have started franchising the programme in the Tokyo metropolitan area.
Total number of students：approx. 3,500 students (+approx. 1,400 students from previous year)

Directly run classes

13

In-school classes

6

Franchised classes

17※ Volunteers in the community can install a dedicated app onto their smartphones, connecting the devices to a network forwatching over children and the elderly.

61

Strategy③:Increase competitiveness of flow businesses⑤
Travel business· In the Travel Business segment, we have until now achieved steady earnings with a lineup centred on core brandtravel packages. However, recent changes in the environment (e.g. global instability, natural disasters, and thedeterioration in the travel product procurement environment associated with the rising numbers of overseas visitors
to Japan) are having a significant impact on business, and we expect that competition will intensify in the years
ahead.
· Accordingly, starting in fiscal 2018, we are reforming the business structure with the intention of further
strengthening our core brand travel packages and establishing alongside this a second pillar—future-oriented
business—as early as possible.

Never resting on our laurels, we will continue to embrace change andPrinciple improve our products even further to create travel products thatreflect customer feedback and ensure we are a company society needs.
Strengthen competitiveness of core
brand travel packages○Strengthen areas outside Europe
・Taiwan, Vietnam, Cambodia, Domestic bus tours○Strengthen Specialised products
・Tours specialise in specific purpose(cruise, oversea and domestic hiking tour, etc.)○Expand customer base among new
demographics
・Strengthen individual-oriented products・Start TV mail order and CM○Revise cost structure for advertisingexpenses, etc.
・ Overhaul advertising expenditure rates

Establish a second pillar○Strengthen approach to nonJapanese tourists○Expand group and business travel
services and create stable source ofrevenue
・Group travel services：Strengthen services in the Tokyo metropolitan area
and increase the number of sales representatives

・Business travel services： Invest in human resources (train global workforce)and Strengthen digitization
62

Strategy③:Increase competitiveness of flow businesses⑥
International transportation business【 Basic strategy for achieving growth 】• Shift toward a more balanced business portfolio (strengthen ocean transportation and logistics operations)• Promote Asia-centred business development (shift away from the focus on Japan as origin/destination for shipments)• Expand investments in growing markets (e.g. India, Africa)

Capital tie-up / joint venture with Seino
Holdings （April 2018）

Under the joint venture, the two companies will augment each other’soperations in and out of Japan and thus provide new distribution
services to customers.
① Under the joint venture, Seino Holdings’ domestic distribution
network and logistics capacity will be combined with Hankyu Hanshin
Express (HEX)’s global distribution network digital, and the twocompanies will work together in digital information initiatives. In thisway, the venture will help deliver supply chain management solutions
tailored to each customer’s needs.
② It will also help develop and deliver new logistics services (customer
agency services related to ordering and trade settlement,
temperature-controlled transport, etc.)【Specific Initiative】
HEX will take out a lease on a warehouse space within Seino
Transportation’s new logistics centre nearby Narita International
Airport, and move there from its present location in Hankyu
Hanshin’s Narita Cargo Terminal (Shibayama, Sanbu District, Chiba
Prefecture) in July 2019. Because the new logistics centre adjoins
Seino Transportation’s truck terminal, it will help HEX provide
logistics services with reduced lead times for cargo shipments andgreater convenience. HEX will use the first floor of the warehouse
space to strengthen its logistics services.

基本方針

Warehouse space
Location

Sanrizuka Narita Chiba

Warehouse
space
specifications（Total floor
space）

Ground floor：Cargo
handling area,
Refrigerator, Freezer（approx. 14,200㎡）
First floor：Logistics
warehouse（approx. 12,400㎡）

Seino
Transportation’struck terminal

Strengthen logistics business /expand global network○Business expansion in North America
We have opened an office in Miami, a gateway into
South America. We are also opening new logistics
centers, and expanded existing ones, in New Jersey
and Dallas.
○Strengthen logistics business in ASEAN region
We built a logistics centre in Indonesia in 2016,
and one in Singapore in 2017. Since then, we haveopened centres in three locations in India: Chennai,
Ahmedabad, and Delhi.
We continue to expand our global network,
opening offices in locations such as
Coimbatore (India) and Da Nang (Vietnam).
○Strengthening business development in Africa
In April 2018, we invested in Intraspeed in South
Africa and acquired the freight forwarder asubsidiary. We also acquired as subsidiaries twocompanies owned by Intraspeed (one company isin Kenya and the other is in Uganda).
Looking ahead, we will step up our efforts todevelop business in Africa.
63

Strategy④:Make greater use of the Group’s collective energies and venture into new
business fields①

Credit and point card strategy
Develop S-POINT (a common point service for the Kansai area)•

In April 2016, the Group teamed up with H2O Retailing Corporation to launch SPOINT※1, a common point service for the Kansai area. Since then, we haveworked to expand S-POINT’s trading volume. Specifically, we are working tobuild S-POINT’s membership while expanding the number of S-POINT member
facilities—i.e., the number of Group and non-Group facilities that accept S-POINT.
※1 The main cards compatible with S-POINT are STACIA cards, which come with optional credit card
function and PiTaPa function, and various point cards.

Now

Future target

Membership：
Approx. 7.5 million members

Membership：
Approx. 10million members【S-POINT service coverage extended from 7-Eleven stores to Kansai Supermarket】

・ On May 14, 2018, S-POINT started being accepted among the roughly 2,700 7-Elevenconvenience stores in the six prefectures of Kansai※2. On November 13 of the same year, it
started being accepted in 27 stores in Hyogo Prefecture. On April 2, 2019, the coverage was
extended to all 37 Kansai Supermarket outlets (36 in Osaka Prefecture, 1 in Nara Prefecture).
Consequently, the card is now accepted in approximately 5,000 stores.
→Capitalizing on this development, we will further develop S-POINT until it becomes
indispensable to Kansai residents. ※2 The six prefectures of Kansai are Osaka, Kyoto,Hyogo, Shiga, Nara, and Wakayama.

【STACIA card strategy 】＜Ongoing measures to develop STACIA card＞
Card to become the foremost card in line-side areas
・Increase the card’s use amount to the top level in the area

Get the card established as in-house card ・Increase card’s rate of usage among the Group64

Strategy④:Make greater use of the Group’s collective energies and venture into new
business fields②

Initiatives of new business fields／Initiatives of raises line-side value【Ventured into agribusiness】【Private after-school day care centre】

Launched production and sales of cherry tomatoes with
次世代育成
high sugar
content, as part of joint venture with acompany that has the farming tech.

To help parents who are bringing up children in areas
served by our lines, we opened a private after-school
day care centre called After-school Kippo.

<Schedule>
July 2019: Production launch
September 2019: Market launch・Open three branches: at
Toyonaka, NishinomiyaKitaguchi (relocate in
December 2018), and Ikeda
stations【Comprehensive support for the elderly】 【Hanshin Ikiiki Day Service】
Open members-only community centres for active
elderly residents in line-side areas.
※ These community centres offer an extensive menuof activities that promote health and wellbeing (e.g.,culture classes). They also provide services that
increase comfort and convenience for users in daily
life.

This is a half-day rehabilitation
service that helps elderly users live
sustainably in their familiar
community.
・15 along the Hankyu and Hanshin
lines

・Open three centres in
Takarazuka, Shukugawa,and Minoh.
65

Initiatives of ESG(Environment, Social, Governance)①
Environment【Examples of efforts to promote eco sustainability】〈Urban Transportation〉○Energy-efficient trains
・After we introduced energy-efficient trains, we achieved a
reduction in power consumption. In fiscal 2019, Hankyu
Corporation consumed 6.7% less energy, and Hanshin
Electric Railway consumed 2.5% less energy, compared tofiscal 2015.

〈Real Estate〉○DBJ Green Building Certification
Two of our buildings certified as five-star DBJ Green Buildings,
the best level in the country（Umeda 1-1 Project）

Hankyu Corporation（Series 1000）

Hanshin Electric Railway
Co., Ltd. （Series 5700）

One of our buildings certified as a four-star
DBJ Green Building, an outstanding accolade（Hankyu Nishinomiya Gardens）（HEP FIVE）

Recipient of certification: Hankyu Hanshin Properties Corp.
Recipient of certification:
Recipient of certification: Hankyu Corporation andand Hankyu Hanshin REIT Asset Management,Inc
Hanshin Electric Railway Co.,Ltd. and Hankyu Corporation
Hankyu Hanshin REIT Asset Management,Inc.

〈Entertainment〉○ Solar power
・Solar cells were installed on Hanshin Koshien Stadium’s Ginsan roof and put into
operation in March 2010.
66

Initiatives of ESG(Environment, Social, Governance)②
SocialGroup-wide social contribution activity: Hankyu Hanshin Dreams and Communities of the
Future Project (since fiscal 2010)
・To build customer loyalty and enhance value over the long-term, we are working on
collaborative projects with group companies, citizen groups, and group employeein accordance with the following policy.
【Policy】 Promote the creation of towns and cities along our railway lines that people will
truly want to live in.
【Priority areas】 Environmentally friendly development that enhances the appeal of line-side
communities—the most important foundation of our businesses
Human capital development aimed at fostering the next generation of customers＜Progress of collaborative projects (as of fiscal 2019)＞① Collaboration with groupcompanies
Promote charity in Group
using certification system

Hankyu Hanshin Holdings(HHHD) uses advertising,co-sponsorship, and an
employee matching gift
programme to promotecharity among groupcompanies②Collaboration with citizen
groups｢Hankyu Hanshin
Community Future Fund｣

HHHD’s matching gift
programme supports
the work of citizen
groups along our lines③Collaboration with group
employees
Charity point system

We encourage current
and former employees
to participate incharitable fundraisingby granting points fortheir participation■Certified charitable activities as of fiscal 2019: 94 activities
Reference<Number of activities>
FY2015:89, FY2016:91, FY2017:94, FY2018:92■Elementary student-oriented programme ‘Challenge Corps’
accommodated a record 2,640 kids
■As many as 100 certified activities in fiscal 2020 (more to becertified during period)■In fiscal 2019, we provided a total of ¥9.0 million to 14 of the 86
groups that applied.
■We encourage employees to sign up for charitable payroll
deductions through promotional campaigns and by issuing requests
during training
Number signed up:69 companies 1,452employees (YoY ＋100)※At the end of December, 2018
Total amount raised: 111 groups ¥58.5million■Charity points system’s results
Number signed up: 71 companies 2,478 employees (YoY＋225)
Points granted: 15,443points ※ January–December 2018
■ Amount that employees raised for the charitable organisations:¥1.17 million for 39 organisations

67

Initiatives of ESG(Environment, Social, Governance)③SocialTo mark the tenth anniversary of the Hankyu Hanshin Dreams and Communities of the Future Project, we worked withpublic and private organizations, as well as with citizen groups, to design a train wrap that raises awareness about theSDGs agenda and the value of the project.
Hankyu and Hanshin are operating ‘SDGs / Dreams and Communities of the Future’ trains, which feature a common
wrap design.
Service period

27 May 2019 ～End of May 2020

Number oftrains4

Organized byMain organizer：Hankyu Hanshin Holdings, Inc.
Co-organizer：Hankyu Corporation, Hanshin Electric Railway Co., Ltd.

Supervised by

Japan Civil Society Network on SDGs (SDGs Japan)

Subsidized by,
Supported by

Subsidized by：Ministry of Foreign Affairs of Japan、Ministry of the Environment Government of Japan
Supported by：Private organizations that actively engage in the SDGs agenda

Hankyu：3 (one on each of the following lines: Kobe, Takarazuka, and Kyoto)、Hanshin : 1‧ The front and rear coaches feature an original illustration and a rollsign commemorating the
project’s tenth anniversary.
‧ The other coaches have two kinds of print on the doors: a print advertising SDGs, and one
commemorating the project’s tenth anniversary.
‧ The onboard advertisements outline each of the SDGs. They also introduce the efforts of our group,
as well as those of government, line-side communities, and supporting businesses, to contributetoward the SDGs.

【Wrap ontrain doors】【Hankyu】【Hanshin】

68Initiatives of ESG(Environment, Social, Governance)④Social【Employee health management】■Formulate and announce the Hankyu Hanshin Holdings Group’s
Declaration on Employee Health Management (April 26,2018)“the Hankyu Hanshin Holdings Group’s Declaration on Employee Health Management”
We understand the importance of the physical and mental health of our employees and their families. It is the sourceof their wellbeing, and it is fundamental to achieving an abundant future for the Group. To deliver safety and comfort
while also offering dreams and excitement, it is paramount that our employees are healthy and that they can betheir authentic selves and make the most of their abilities.
To this end, employees themselves must raise their health-consciousness and promote the health of each other andtheir family members.
Under the Hankyu Hanshin Wellness Challenge slogan, we hereby commit ourselves to safeguarding and promoting
the health and well-being of all employees and to developing a healthy and motivated workplace environment.
April,2018
Takehiro Sugiyama
President & Representative Director, Officer in Charge of Health Management
Hankyu Hanshin Holdings, Inc.

【Progress in fiscal 2019】(1) Six core group companies formulated and announced employee healthdeclarations in an effort to promote employee health management.
(2) In February 2019, four group companies were certified as a Health andProductivity Management Organization※: Hankyu Corporation, Hanshin
Electric Railway, and Itec Hankyu Hanshin (all in the large enterprise
category), and Hankyu Hanshin Insurance Services (SME category).
※The Health & Productivity Management Outstanding Organizations Recognition Program was jointly
launched by METI and Nippon Kenko Kaigi. Each year, Nippon Kenko Kaigi commends companies that
demonstrate exemplary practices for addressing local health challenges and contributing to the Nippon
Kenko Kaigi’s health promotion campaigns.

69

Initiatives of ESG(Environment, Social, Governance)⑤Governance【Group-wide initiatives for improving governance】■Established the Corporate Governance President Committee (fiscal 2016 ～)・Meets twice a year to discuss matters such as ensuring transparency of election and dismissal of officers,
communicating with outside directors, etc.

■Started evaluating the effectiveness of the Board of Directors (fiscal 2017～)
・The management of the Board of Directors is reviewed once a year; directors are interviewed about whether there
is sufficient board accountability, whether board proceedings are appropriate, etc.

■Scrapped the corporate adviser system （fiscal 2018）■Resolved to discontinue anti-takeover measures（fiscal 2019）■Established remuneration committee (fiscal 2019～)
・We established a remuneration committee to ensure that our Board of Directors determines remuneration amounts
in an impartial and transparent manner. The committee comprises the chairman, outside directors, and outside
members of the Audit & Supervisory Board.

■Revised remuneration structure (fiscal 2020～)
・We decided to introduce a performance-linked stock compensation plan for the chairman and president to further
motivate them to work toward our corporate value, performance, and share price. The stock compensation will bedelivered through a trust.

■Overhauled board composition（fiscal 2020）
・To ensure board diversity and enhance the board’s
oversight function, we decided to appoint an outside
director (the candidate is female) and to provide that
one third of the board members should be independent
from the company※.
※Subject to shareholder approval at the General Meeting of
Shareholders on June 13, 2019

＜Proportion of outside members to total members(Board of Directors and Audit & Supervisory Board)＞

fiscal 2017

fiscal 2018

fiscal 2020

5members/
19members
26.3％

5members/
14members
35.7％

6members/
14members
42.8％
70

Ⅳ. Forecast for fiscal 2020 (fiscal year ending
31st March 2020) and outlook for eachbusiness segment71Consolidated Statements of Income (Summary)(¥ billion)

FY2020
Forecasts

FY2019Results

ChangeRemarks

Revenues from operations

810.0

791.4

+18.6(+2.3%)

Operating income

107.0

114.9

-7.9(-6.9%)

Ordinary income

105.0

110.5

-5.5(-5.0%)

Net income attributable toowners of the parent

67.0

65.5

+1.5(+2.3%)

Depreciation and amortisation

58.1

54.2

+3.9

Financial balance ① - ②

-8.2

-8.1

-0.1

Interest and dividend income①

1.4

1.5

-0.1

Interest expense②

9.6

9.6

-0

The increase in operating revenue
will reflect higher condominium
sales. The decrease in operating
income will reflect a reactionary
downturn from fiscal 2019, when
we sold land for commercial
facilities in the eastern section ofInternational Culture Park ‘Saito’(in Ibaraki City, Osaka Prefecture).

The increase will reflect areactionary upturn from fiscal
2019, when we recorded special
losses in connection with theagreement to transfer Hokushin
Kyuko Line assets.

(Reference)72

Consolidated Statements of Income (Breakdown for each business segment)(¥ billion)[Upper table]
Revenues from operations[Lower table]
Operating income

Total

FY2020
Forecasts

FY2019Results

Change

810.0

791.4

+18.6

107.0

114.9

-7.9

242.8

238.6

+4.2

43.8

43.5

+0.3

246.2

237.3

+8.9

41.6

49.3

-7.7

73.1

74.5

-1.4

13.2

13.4

-0.2

58.7

53.5

+5.2

5.3

5.3

+0

36.9

35.5

+1.4

1.9

1.8

+1.0

88.7

90.0

-1.3

1.8

2.4

-0.6

68.5

64.9

+3.6

1.7

1.2

+0.5

Remarks(Breakdown for each business segment)
Urban
Transportation

Real EstateEntertainment
Information andCommunication
Technology
TravelInternational
Transportation
Hotels

Earnings will increase with transportation revenue from Hankyu andHanshin lines and the recovery from from the effects of natural
disasters, which will offset an increase in depreciation andamortisation related to investment in rolling stock.
The increase in operating revenue will reflect higher condominium
sales. The decrease in operating income will reflect a reactionary
downturn from fiscal 2019, when we sold land for commercial
facilities in the eastern section of International Culture Park ‘Saito’ (inIbaraki City, Osaka Prefecture).
The decreases will occur because performance falls short of the levelin fiscal 2019, when Takarazuka Revue operated at a high rate.

The increase in operating revenue will reflect the increased orders forin the information services business. The lack of change in operating
income will reflect higher direct costs associated with the extra
revenue, and higher labour costs associated with expanded business.
The increases reflect the rise in the number of travellers to overseas
and domestic destinations, which offsets cost increases.
The decreases reflect the impact of US-China tensions, which offsets
the higher handling volume in ocean transport and logistics
businesses.
The increases reflect the recovery from the effects of natural disasters,
which offsets rises in costs associated with new hotel openings,
depreciation and amortisation costs, and other expenses.

（Note）The fiscal 2019 figures for Entertainment and Information and Communication Technology segment have been aggregated to allow YoY comparisons.
We may change this method in the future.

73

Urban Transportation
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2019 to FY2020
・Recovery from the effects of last year’s natural
disasters
・Higher railway operation revenue due to growing
line-side populations and increased inbounddemand・Higher depreciation and amortisationaccompanying investment in the manufacture ofrolling stock(¥ billion)

Revenues from operations
Operating income

239.5

237.1

236.0

41.3

42.2

41.6

238.6

242.8

43.5

43.8

 Railway operation revenue will likely rise given therecovery from the effects of last year’s disasters as wellas the growing line-side populations and increased
inbound demand.
 As for expenses, we anticipate higher depreciation andamortisation, reflecting the investment in rolling stockand station apparatus.
 As a result of the above, in fiscal 2020, the corebusiness as a whole is projected to record an increase inoperating income.
 Regarding the outlook for fiscal 2022, while depreciation
and amortisation is set to rise significantly, we expectthat railway operation revenue will benefit from higher
inbound demand. Therefore, operating income in fiscal
2022 is projected to be at the fiscal 2020 level.

FY2016FY2017 FY2018

FY2019 FY2020
forecasts

74

[Urban Transportation] Railway Performance results
Hankyu Corporation
Fare revenues (¥ million)*
FY2020FY2019ChangeForecasts
Results
Commuter pass
33,95933,456+502(+1.5%)
Workers
29,42328,962+461(+1.6%)
Students
4,535
4,494
+40(+0.9%)

Passenger volumes (Thousands)*
FY2020FY2019ChangeForecasts
Results
342,333
337,778 +4,555(+1.3%)
241,226
237,542 +3,683(+1.6%)
101,107100,235+872(+0.9%)

Other tickets

64,424

63,059 +1,365(+2.2%)

325,847

318,158

Total

98,38496,516 +1,867(+1.9%)

668,181655,936 +12,244(+1.9%)

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2020FY2019ChangeForecasts
Results+7,688(+2.4%)

Passenger volumes (Thousands)*
FY2020FY2019ChangeForecasts
Results

Commuter pass

12,22012,024+196(+1.6%)

126,237

124,353+1,883(+1.5%)

Workers

10,972

10,790+181(+1.7%)

99,90098,310+1,589(+1.6%)

Students

1,247

1,233

+14(+1.1%)

26,33726,043+293(+1.1%)

Other tickets

22,47522,030+445(+2.0%)

123,676

121,012+2,663(+2.2%)

Total

34,69534,054+641(+1.9%)

249,913245,366+4,546(+1.9%)＊ 1.Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
2.For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
3.Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway.

75

Real EstateBlue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2019 to FY2020
・Decline in operating income as a reactionary downturn
from sale of land for commercial facilities in the easternsection of International Culture Park ‘Saito’ in theprevious year.
・Rise in costs following completion of phase 1 of Umeda 11 Project・Higher gross profit in condominium business The leasing business will see an increase in operating
revenue reflecting its efforts to upwardly revise officerent and maintain high occupancy rates, coupled withefforts to improve the appeal of commercial facilities byattracting new tenants and revamping the facilities.
However, operating income will decline because of higher
costs associated with the Umeda 1-1 Project.
 The real estate sales business will see higher gross profit
from condominium sales, but operating income will
decline as a reactionary downturn from the sale of land
for large-scale commercial facilities in the previous year.
 As a result of the above, in fiscal 2020, the core businessas a whole is projected to record a significant decrease inoperating income.
 Regarding the outlook for fiscal 2022, with increased
earnings from real estate leasing and real estate sales,
operating income is projected to surpass the fiscal 2020
level.

(¥ billion)
Revenues from operations

Operating income

237.3
220.9

215.7

222.6

49.9

FY2016

246.2

49.3
42.0

41.0

FY2017FY201841.6

FY2019FY2020forecasts

76Entertainment
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2019 to FY2020
・ Higher revenue from baseball・ Decline in the stage’s level of capacity utilisation
 In the sports business, Hanshin Tigers Baseball Club’s
efforts to maintain the high audience levels of fiscal
2018 are expected to yield to stable earnings.
 In the stage business, the stage’s capacity utilisation
will decline from its high level, and there will be lower
sales of related merchandise. Therefore, we anticipate
that earnings will decline from the fiscal 2019 level.
 As a result of the above, in fiscal 2020, the corebusiness as a whole is projected to record a slightdecrease in operating income compared to the previousyear.
 Regarding the outlook for fiscal 2022, revenue will dip
because Tokyo Takarazuka Theatre will be closed for along period in order to replace stage machinery.
However, the core business as a whole will post soundoperating income.

Revenues from operations
Operating income

112.5

115.2

(¥ billion)

121.1

17.8
15.3

74.5 73.1
13.4 13.2

15.7

FY2016 FY2017

FY2018FY2019 FY2020
forecasts(Note) ・As Information and Communication Technology has been upgraded to a separate core business (see page.38),
the figures for fiscal 2019 and onward exclude the results for businesses that fall under the new core business.
The fiscal 2019 figures for Entertainment segment has been aggregated to allow YoY comparisons.
We may change this method in the future.

77

Information and Communication Technology
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2019 to FY2020

・Large orders for information services
 The information services business will post an increase
in revenues from operations, reflecting large orders
related to transport systems and expanded business insectors with growth potential.
 Labour costs and other direct costs are expected to riseas the business expands.
 The broadcast and communications business will postsound operating income, reflecting its efforts to win
new users and retain existing ones by providing new,high-quality services, including 4K8K-compatibility andhigh-speed internet connection.
 The safety and education business will see steady
growth by expanding existing services, such as
Mimamoreme (a safety-monitoring app).
 As a result of the above, in fiscal 2020, the corebusiness as a whole is projected to record no significant
change in operating income.
 Regarding the outlook for fiscal 2022, each businesswill make efforts to develop and contribute higher
earnings.

Revenues from operations
Operating income（¥ billion）

58.7
53.5

FY2016FY2017FY20185.3

5.3

FY2019FY2020forecasts（Note）The fiscal 2019 figures for Information and Communication Technology segment has been aggregated to allow YoY comparisons.
We may change this method in the future.

78

TravelBlue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2019 to FY2020
・Higher costs associated with structural reform
・Higher demand for travel to overseas regions
other than Europe
In fiscal 2020, there will be no significant change
in earnings. The segment is recovering from theeffects of the last year’s natural disasters, and it
expects an increase in travel to destinations
outside Europe. However, these factors will be
offset by increasing expenses associated withstructural reforms.
Regarding the outlook for fiscal 2022, over theperiod of the plan, we will strengthen thecompetitiveness of core brand travel packages
while establishing a second pillar (see page.62).
As a result of these efforts, in fiscal 2022,
operating income is projected to surpass the
fiscal 2020 level.

(¥ billion)

Revenues from operations
Operating income

34.0
30.5

36.9

29.9

2.1

0.7

35.5

1.8

1.9

0.6

FY2016 FY2017

FY2018 FY2019

FY2020forecasts

79

International Transportation
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2019 to FY2020
・Higher handling volume in ocean transportand logistics
・Decline in operating income due to US-China
tension(¥ billion)

Revenues from operations
Operating income

76.1

 Although fiscal 2020 will see a higher handlingvolume in ocean transport and logistics
businesses, earnings will significantly decline
because of the impact of US-China tension oncompanies in East Asia.
 Regarding the outlook for fiscal 2022, thesegment will aim for steady growth throughout
the term of the current plan by strengthening airtransport, expanding business in ocean transportand logistics, gaining returns on investment(primarily in Asia), and producing a synergistic
effect with Seino Holdings.
 As a result of these efforts, in fiscal 2022,
operating income is projected to significantly
surpass the fiscal 2020 level.

(37.7)

83.7

90.0

88.7

71.7
【Reference】
Figures in parentheses
indicate net amounts.

2.8
2.4
1.8

FY20161.8

1.6

FY2017 FY2018

FY2019FY2020forecasts＊ As of fiscal 2017, the presentation of revenues from operations of the International
Transportation Business has changed from net to gross amounts.

80

Hotels
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income from
FY2019 to FY2020
・Recovery from the effects of last year’s natural
disasters
・Increase in depreciation and amortisation
associated with a hotel opening
 Revenues from operations will rise with the
opening of four new hotels and the recovery
from the effects of the natural disasters infiscal 2019.

Revenues from operations
Operating income

68.5

68.0
67.2
65.6

3.3
2.8
2.2

 Expenses will rise in connection with the
opening of the four new hotels and theassociated increase in depreciation andamortisation.
 As a result of the above, in fiscal 2020,
operating income is projected to increase.
 Regarding the outlook for fiscal 2022,
operating income will increase among hotels
and significantly exceed the fiscal 2020 level.
The contributing factors will include the impact
of new hotel openings and the boost from
Tokyo 2020, as well as active efforts to
respond to the expected increase in inbounddemand.

64.9

1.7
1.2

FY2016FY2017FY2018FY2019FY2020forecasts

81

《Reference》 Consolidated Statements of capital expenditure
FY2020
Forecasts(¥ billion)

Remarks①

Remarks②

126.2

Total capital expenditure

FY2019Results

114.4

Change①-②+11.8(Breakdown for each business segment)
Building of new rolling stock andimprovement of existing rolling
41.4 stock, Kita-Osaka Kyuko Railway
Line Extension Project,
Renewal of station apparatus

Urban Transportation

Takarazuka Hotel,Umeda 1-1
Project, Project to rebuild Kobe
61.8 Hankyu Building’s east wing &renew its west wing

Real Estate

Building of new rolling stock
and improvement of existing
33.8 rolling stock, Installation ofmobile platform edge doors

Acquisition of LaLaport
Koshien (site), Umekita PhaseII Development Project,62.4 Umeda 1-1 Project, Hankyu
Nishinomiya Gardens’ Gatebuilding

+7.6

-0.6

Entertainment

4.6

2.6

+2.0

Information andCommunication Technology

5.3

5.3

+0

Travel

1.8

0.8

+1.0

International Transportation

4.3

0.7

+3.6

Hotels

7.0 Hankyu Respire Osaka

2.0

+5.0

Furnishings of Hotel（Note）The fiscal 2019 figures for Entertainment and Information and Communication Technology segments havebeen aggregated to allow YoY comparisons. We may change this method in the future.

82

《Reference》 Consolidated Statements of Depreciation and amortisation, EBITDA(¥ billion)

FY2020forecasts①

Total Depreciation and amortisation

FY2019results②

Change
①-②

58.1

54.2

+3.9

Urban Transportation

28.6

27.4

+1.2

Real Estate

17.5

16.6

+0.9

Entertainment

3.8

3.7

+0.1

Information and Communication Technology

4.0

3.4

+0.6

Travel

0.8

0.7

+0.1

International Transportation

1.3

0.6

+0.7

Hotels

2.5

2.1

+0.4

167.0

171.4

-4.4

Urban Transportation

72.4

70.8

+1.6

Real Estate

59.3

65.9

-6.6

Entertainment

17.0

17.1

-0.1

Information and Communication Technology

9.3

8.7

+0.6

Travel

2.7

2.4

+0.3

International Transportation

3.1

3.0

+0.1

Hotels

4.2

3.4

+0.8

(Breakdown for each business segment)

Total EBITDA(Breakdown for each business segment)（Note）The fiscal 2019 figures for Entertainment and Information and Communication Technology segments havebeen aggregated to allow YoY comparisons. We may change this method in the future.
83

Ⅴ. Referential Materials

84Consolidated Subsidiaries(As of April 1, 2019)Urban Transportation
Railway
Hankyu Corporation
operations
Hanshin Electric Railway
Nose Electric Railway
Kita-Osaka Kyuko Railway
Hokushin Kyuko Railway
Kobe Rapid Transit Railway
Hankyu Hanshin Electric System
Hankyu Railway Service
Automobile
Hankyu Bus
Hanshin Bus
Hankyu Kanko Bus
Hankyu Denen Bus
Osaka Airport Transport
Hankyu Taxi
Hanshin Taxi
Osaka Hanshin Taxi
Hankyu Hanshin Motor Technology
Hankyu Driving School Hattori Ryokuchi

Haks Hanshin
Hankyu Commuterbus Management

Retailing
Advertising
Other

Osaka Motor Technology (OMTEC)
Eki Retail Service Hankyu Hanshin

Hankyu Style Labels
Hankyu Advertising Agency
Alna Sharyo
Hankyu Sekkei Consultant
Hanshin Station Net
Hanshin Sharyo MaintenanceReal Estate
Real estate

Hankyu Hanshin Properties
leasing and sales Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin Estate Service
Osaka Diamond Chikagai
KyokutoHankyu Hanshin Building Management
Other
Hankyu Hanshin High Security Service

Hankyu Hanshin Clean Service
Hankyu Hanshin REIT Asset Management
Hankyu Hanshin Real Estate Investment Advisors

Hankyu Hanshin Housing Support

Entertainment
SportsHanshin Electric Railway
Hanshin Tigers Baseball Club
Hanshin Contents Link Corporation

P & P Hamamatsu
Wellness Hanshin
Mt.Rokko Cable Car & Tourism
Stage
Hankyu Corporation
Takarazuka Creative Arts
Takarazuka Stage
Umeda Arts Theater
Information and Communication Technology
Information and Itec Hankyu Hanshin
Communication System Giken
Technology
YMIRLINK
RworksMimamorume
Himeji Cable Television
Bay Communications
Hanshin Cable Engineering

TravelTravel agency

Hankyu Travel International
Hankyu Hanshin Business Travel
Hankyu Travel Support
Hanshin Travel International
International Transportation
International
Hankyu Hanshin Express
transportation Hankyu Hanshin Logipartners
HANKYU HANSHIN EXPRESS(USA, UK, NETHERLANDS, SINGAPORE
DEUTSCHLAND,HONG KONG,
THAILAND,PHILIPPINES, MALAYSIA,VIETNAM,SHANGHAI,GUANGZHOU,BEIJING,TAIWAN, KOREA,INDIA,
INDONESIA, Southeast Asia, HANKYU
INTERNATIONAL LOGISTICS SHANGHAI,:19Companies）
HotelsHotel
Hankyu Hanshin Hotels
management Hanshin Hotel Systems
Hankyu Hanshin Restaurants
Arima View Hotel
Amanohashidate Hotel
Kure Hankyu Hotel【Legend】
Name of segment
Name of
Name of consolidated subsidiary(Only listed companies that are
sub-segment
managed as segment)85

Revenues from Operations and operating income as a FY2019
Management composition

Earnings structure(As of April 1, 2019)

Hankyu Hanshin Holdings
HotelsInternational Transportation

TravelInformation andCommunication Technology

Entertainment

Real Estate

Urban Transportation

Hankyu Corporation※
HankyuHankyuHankyu Hankyu
TravelHanshinHanshin Hanshin
InterProperties
Express
HotelsHanshinElectric Railway※ national※ In the Umeda and line-side areas, Hankyu
Corporation and Hanshin Electric Railway will retain
their real estate for leasing and developing and workwith Hankyu Hanshin Properties to promote community
building efforts in connection with public transport
networks and local governments.

 The Urban Transportation and Real Estate businesses

generate stable cash flows and account for
approximately 60% of revenues from operations and
80% of operating income.
Revenues from operations breakdown(FY2019)
Consolidated Total

Operations¥791.4billion

Operating Income¥114.9billion

Operating Income Margin

Hotels
Revenues from

Revenues from Operations

Urban Transportation¥64.9billion

Operating Income¥1.2billion

Operating Income
Margin1.8%International
Transportation
Revenues fromOperations¥90.0billion

Operating Income¥2.4billion

Operating Income
Margin2.7%¥35.5billion

Operating Income¥1.8billion

Operating Income
Margin5.1%

Revenues fromOperations¥238.6billion

Operating Income¥43.5billion

Operating Income
Margin18.2%

Real Estate

TravelRevenues fromOperations

14.5%

Revenues fromOperations¥237.3billion

Operating Income¥49.3billion

Operating Income
Margin20.8%

Entertainment & Communications
Revenues fromOperations¥126.5billion

Operating Income¥18.8billion

Operating Income
Margin14.9%

86Areas served by the Hankyu and Hanshin lines①
Definition of the areas served by the Hankyu and Hanshin lines
Osaka Prefecture:
Osaka City (Fukushima, Konohana, Nishi, Naniwa, Nishi-Yodogawa, Higashi-Yodogawa, Yodogawa,
Kita and Chuo, out of a total of 24 wards); and Toyonaka, Ikeda, Suita, Takatsuki, Ibaraki, Minoh,
Settsu cities and Shimamoto town
Hyogo Prefecture:
Kobe City (Higashi-Nada, Nada, Hyogo, Nagata and Chuo, out of a total of 9 wards); andAmagasaki, Nishinomiya, Ashiya, Itami, Takarazuka and Kawanishi cities
Kyoto Prefecture:
Kyoto City (Nakagyo, Shimogyo, Ukyo, Nishikyo, out of a total of 11 wards); and Muko andNagaokakyo cities and Oyamazaki town

87

Areas served by the Hankyu and Hanshin lines②
Population Trends

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. （as of January 1,2018）

107.0

（k㎡）

(thousand)

Area

Population

106.0

Areas served by the Hankyu/Hanshin
line

1,318

5,609

105.0

Osaka Pref. (service areas)

449

2,672

104.0

Hyogo Pref. (service areas)

471

2,269

103.0

Kyoto Pref. (service areas)

398

668

Non-Hankyu/Hanshin Service Areas

26,033

14,737

Osaka Pref. (non-service areas)

1,456

5,960

101.0

Hyogo Pref. (non-service areas

7,930

3,217

100.0

Kyoto Pref. (non-service areas)

4,214

1,838

Shiga Pref.

4,017

1,393

Nara Pref.

3,691

1,360

98.0

Wakayama Pref.

4,725

969

97.0

27,351

20,346

Total（1991=100）

102.0

99.0

Survey of prospective condominium purchasers regarding
their preferred Kansai residential area
Ranking Station（Area）

Ranking

Station（Area）

1

Nishinomiya-Kitaguchi （Nishinomiya, Hyogo Pref.）11

Ashiya（Ashiya, Hyogo Pref.）2

Shukugawa（Nishinomiya, Hyogo Pref.）12

Tennoji（Osaka, Osaka Pref.）

3

Umeda

（Osaka, Osaka Pref.）

13

Kobe

（Kobe, Hyogo Pref.）4

Okamoto（Kobe, Hyogo Pref.）14

Fukushima（Osaka, Osaka Pref.）5

Takarazuka（Takarazuka, Hyogo Pref.）15

Hommachi（Osaka, Osaka Pref.）Kobe-Sannomiya（Kobe, Hyogo Pref.）

6

Esaka

（Suita, Osaka Pref.）16

7

Senri-Chuo（Toyonaka, Osaka Pref.）17

Toyonaka（Toyonaka, Osaka Pref.）8

Ashiyagawa（Ashiya, Hyogo Pref.）18

Karasuma Oike

（Kyoto, Kyoto Pref.）

9

Osaka

（Osaka, Osaka Pref.）19

Kuraku-enguchi（Nishinomiya, Hyogo Pref.）10

Mikage（Kobe, Hyogo Pref.）20

Yodoyabashi（Osaka, Osaka Pref.）Except for Tennoji (12),Hommachi (15), andYodoyabashi (20), all of
the top 20 stations areon Hankyu Hanshin
Holdings group lines

Source: A survey of prospective condominium purchasers regarding their preferredresidential area, conducted by seven major real estate developers (Sumitomo Realty& Development Co., Ltd., Daikyo Incorporated, Tokyu Land Corporation, Tokyo Tatemono Co., Ltd., Nomura Real Estate Development Co., Ltd., Mitsui Fudosan
Residential Co., Ltd., and Mitsubishi Jisho Residence Co., Ltd.) and included in a press release dated September 27,2018.

88

Overview of Umeda area①
Major rental properties
Property nameLeasable area
(1,000㎡) ※1（as of March, 2019)
Number of floors

Completed213

41 floors above ground and2 below ground

2012

82

40 floors above ground and5 below ground

1997

58

13 floors above the groundand 3 below ground

2018

55

28 floors above ground and4 below ground2004

Hankyu Chayamachi Bldg.
(Applause Tower)

52

34 floors above ground and3 below ground1992

Hankyu Sanban Gai
Shopping Centre

39

Umeda Hankyu Bldg.
(Hankyu Dept.Store・office
tower)
Umeda Hanshin Daiichi
Bldg.
(HERBIS OSAKA)
Osaka Umeda Twin
Towers South (Umeda 1-1
project Phase I)
Umeda Hanshin Daini Bldg.
(HERBIS ENT)

Hankyu Grand Bldg.
Hankyu Terminal Bldg.
Hankyu Five Bldg.※2(HEP FIVE)

5 floors above ground and2 below ground
32 floors above ground and36
3 below ground
18 floors above ground and27
4 below ground
10 floors above ground and20
3 below ground

1969
1977
1972
1998

10 floors above ground and1980
2 below ground
38 floors above ground andGRAND FRONT OSAKA※314
2013
3 below ground
9 floors above ground andNU chayamachi
122005
2 below ground※1：Leasable area does not include areas for public use※2：Jointly owned property with Hankyu Hanshin REIT Asset Management※3：Jointly owned property with others (other than Hankyu Hanshin
REIT Asset Management)
NAVIO Hankyu(HEP NAVIO)

16

Developments in Umeda district(red = Hankyu Hanshin Holdings group related Projects)① Umeda 1-1 Project（Osaka Umeda Twin Towers South）② Umekita Phase II Development Project③ (Provisional Name) Yodobashi Umeda Tower – Yodobashi Holdings, Inc.
④ (Provisional Name) Umeda 3-chome Project- Japan Post Holdings Co. Ltd.,/Osaka Terminal Building Co., Ltd.

⑤ (Provisional Name) Umeda Sonezaki Project -Sumitomo Realty & development Co., Ltd.
⑥ Chayamachi B-2 District Redevelopment Project -TOKYU LAND CORPORATION Co., Ltd.

89

Overview of Umeda area②
Trends in rent amongsix main business districts in Osaka

Trends in average vacancy rates amongsix main business districts in Osaka
（%）
16.00

（¥/3.3㎡）
22,00014.00

20,00012.00

18,00010.00

16,0008.00

14,0006.00

12,0004.00

10,000

2.00

2014

2015

2016

2017

Osaka business areas (all)Minamimorimachi area
Senba area
Shinosaka area

2018

2019

8,000

2014
2015
2016
Osaka business areas (all)Minamimorimachi area
Senba area
Shinosaka area

Umeda area
Yodoyabashi-Honmachi area
Shinsaibashi-Namba area
Tokyo business areas (all)2017(¥/3.3㎡)

2014

4.68 3.38 2.45

Osaka business areas (all)11,213 11,132 11,101 11,107 11,302 11,510

5.54

3.20 2.02 1.59

Umeda area

14,262 14,118 14,207 14,366 14,684 15,056

6.08

5.40

6.01 5.06 4.58

Minamimorimachi area

9.94

7.51

4.58 3.60 2.22

Yodoyabashi-Honmachi area

12.16 11.02

8.81

7.46 5.00 3.47

Senba area

Shinsaibashi-Namba area

6.35

6.06

9.07

5.95 3.70 3.14

Shinsaibashi-Namba area

12,315 12,225 12,110 11,802 11,696 11,875

Shinosaka area

7.69

6.86

5.42

4.65 4.01 3.20

Shinosaka area

10,173 10,114 10,106 10,213 10,142 10,523

Tokyo business areas (all)

6.70

5.30

4.34

3.60 2.80 1.78

Tokyo business areas (all)16,325 17,195 17,973 18,730 19,699 21,134

(%)

2014

2015

2016

2017

Osaka business areas (all)

9.45

8.71

6.80

Umeda area

9.22

7.84

Minamimorimachi area

8.24

Yodoyabashi-Honmachi area

9.66

Senba area

2018

2019

9,658

2015

2018
2019
Umeda area
Yodoyabashi-Honmachi area
Shinsaibashi-Namba area
Tokyo business areas (all)

9,414

2016

9,408

2017

2018

2019

9,314 9,249 9,331

11,005 10,993 10,898 10,861 11,105 11,200
9,782

9,652

9,613

9,620 9,845 10,093(Comparison of average rents in March of respective years)
Source: Miki Shoji, “Office Data.”

90

Progress on the Development of International Culture Park ‘Saito’ (a new town)• Since the opening of the western area of Saito in Spring 2004, progress has been made in developing residential
facilities and attracting commercial tenants in the western area. Saito has developed into a new town, with aresidential population of 16,000 and a facility population of 3,500.
• In Spring 2016, the central area was opened up for common use. Since then, the area has become home to anincreasing number of facilities, including large distribution centres, and the facility population has risen to around2,500.
• As for the eastern area, in February 2015, Ibaraki City altered the plan for prior areas (Sanroku Line area andcentral-east area). In May of the same year, the Group received permission to conduct development operations in
the Sanroku Line area. We commenced operations in November, and construction work has proceeded smoothly
since then. In fiscal 2019, we sold off part of the commercial land in this area. We are driving forward the plan toconstruct Saito Moegi Distribution Centre (tentative name), which will occupy most of the remaining land.
Residential population in western area
（as of February,2019）
Minoh
City

Ibarakicity

Number ofhouseholds

2,154

3,005

5,159

Current
population

6,668

8,974

15,642

population/
Number ofhouseholds

3.10

2.99

3.03

茨木千提寺IC
Ibaraki-Sendaiji
I.C.
2017年11月開業予定

Shin-Meishin Expressway

Saito

中央東エリアCentral-east area

Sanroku山麓線エリア
Line area

Total

（仮称）
新箕面駅（仮称）
新箕面駅（仮称）
箕面船場駅（仮称）箕面船場駅

Size of each area

Size

Western
area

Centralarea

Easternarea

312.6ha62.5ha367.5ha91

Hotel network of the Hankyu-Hanshin-Daiichi Hotel Group
Directly managed hotels (Hankyu Hanshin Hotels) 20Hotels 5,417 rooms
Other (franchises, etc.)

27Hotels 5,593 rooms

Directly managed hotels
Dai-ichi Hotel Tokyo
Dai-ichi Hotel Annex
Daiichi Hotel Tokyo Seafort
Kichijoji Dai-ichi Hotelremm Hibiya
remm Akihabara
remm Roppongi
remm Tokyo Kyobashi
Hotel Hankyu International
Hotel new Hankyu Osaka
Hotel new Hankyu Annex
Umeda OS hotel ※Hotel Hanshin Osaka
Hotel Hanshin Annex Osaka
remm Shin-Osaka
Senri Hankyu Hotel
Hotel Hankyu Expo Park
Takarazuka Hotel
Hotel new Hankyu Kyoto
remm Kagoshima

Ginza Creston
Ours Inn Hankyu
Dai-ichi Hotel Ryogoku
Dai-ichi Inn Ikebukuro
Dai-ichi Inn Shonan
Toyama Dai-ichi Hotel
Dai-ichi Inn Shinminato
Tokyo Dai-ichi Hotel Nishiki
Hotel Boston Plaza Kusatsu
Hotel Royal Hill Fukuchiyama
Amano Hashidate Hotel
Osaka Dai-ichi Hotel
Hotel Bay Gulls
Arima Kirari Hotel
Hotel Ichibata
Kure Hankyu Hotel

Other(franchises, etc.)

Tokyo Dai-ichi Hotel Matsuyama

Tokyo Dai-ichi Hotel Iwanuma Resort

47Hotels
11,010 rooms（as of May 15, 2019）（2019年5月15日現在）

ホテル所在地直営

チェーン

Kyoto,
Osaka,
京阪神
Kobe

11

2

Tokyo Dai-ichi Hotel Shimonoseki

Takamatsu Kokusai Hotel
JR Hotel Clemant Takamatsu
JR Hotel Clement Tokushima
The Crown Palais New Hankyu Kochi

Imabari Kokusai HotelTokyo Dai-ichi Hotel Tsuruoka
Tokyo Dai-ichi Hotel Yonezawa

Tokyo
東京地区

Tokyo Dai-ichi Hotel Shin-Shirakawa

8※Hankyu-Hanshin Hotels are entrusted operation

4

Tokyo

92

Hokushin Kyuko Line Wide area Route map

New towns / residential developments for which
earthwork operations are complete (End of March 2016)

Source: Edited version of map provided by Geospatial Information Authority of Japan93