Performance Highlights (Consolidated)
Key Financial Indicators(¥ million)($ thousand)2008

2 0 09

2010

2011

2012

2013

201 3

¥752,300
90,724145,200¥683,715
77,823
135,300¥653,287
70,126133,200¥638,770
64,743
127,100¥649,703
73,809133,500¥682,439
87,921
145,100$7,259,989
935,330
1,543,617

Income before income taxes andminority interests

26,09834,06433,89932,76043,41962,192

661,617

Net income

627—
134,307
51,577

20,550—109,688
54,798

10,793
12,541
132,386
60,41818,06814,72868,431
59,66939,252
44,99255,26756,96839,70254,081
59,51254,540422,362575,330
633,106
580,213¥ 74,902(100,058)(25,155)
36,718¥108,597(115,047)(6,449)7,014¥146,955(132,737)
14,217(24,200)¥103,252(62,516)
40,735(39,544)¥124,525(44,295)
80,230(78,978)¥127,655(58,923)
68,732(69,195)$1,358,032(626,840)
731,191(736,117)¥2,348,476
476,639
1,271,100¥2,307,332
473,878
1,275,620¥2,337,331
480,633
1,282,583¥2,314,669
486,947
1,251,665¥2,274,380
524,801
1,183,647¥2,281,007
573,154
1,126,633$24,266,032
6,097,383
11,985,457¥  0.500.41
369.255.00¥ 16.2816.18
366.965.00¥  8.55
8.51
371.705.00¥ 14.32
14.27
377.175.00¥ 31.1331.13
407.01
5.00¥ 31.4831.47
443.63
5.00

$0.33
0.33
4.72
0.05

12.1
3.2
0.1
8.8
19.9
2.7

11.4
2.5
4.4
9.4
20.1
2.8

10.7
2.2
2.3
9.6
20.1
2.7

10.1
2.0
3.8
9.8
20.6
2.6

11.4
2.8
7.9
8.9
22.6
2.3

12.9
3.3
7.4
7.8
24.5
2.0

—
—
—
—
—
—

Stock price at the end of fiscal year
(yen and U.S. dollars)¥  431¥  447¥  433¥  384¥  361¥  569$  6.05

Market capitalisation (¥ billion, $ million)
PER (times)

548.0
862.0
1.2

568.3
27.5
1.2

550.5
50.6
1.2

488.2
26.8
1.0

459.0
11.6
0.9

723.4
18.1
1.3

76,957——618,373
180,906

618,585
182,997

605,963
193,620603,233
205,202608,632
218,560

615,324
221,133

—
—

3.08

5.88

8.90

11.22

7.29

11.50

—

FY

Result of Operations:
Revenues from operations
Operating income
EBITDA

Comprehensive income
Capital expenditure
Depreciation and amortisation
Cash Flows:
Cash flows from operating activities
Cash flows from investing activities
Free cash flow
Cash flows from financing activities
Financial Position:
Total assets
Total net assets
Interest-bearing debt
Per Share Data (yen and U.S. dollars):
Basic
Net income
DilutedNet assets
Dividend
Ratios:Operating income margin (%)
ROA (%)ROE (%)
Interest-bearing debt/EBITDA (times)
Equity ratio (%)
Debt/equity (D/E) ratio (times)
Stock Price Index:

PBR (times)
Business Data:
Hankyu Railway (thousand)Hanshin Electric Railway (thousand)Average vacancy rates of rental officebuildings (Umeda area, Osaka; %)Notes:
The U.S. dollar amounts have been translated, for convenience only, at ¥94 = $1, the prevailing exchange rate on the Tokyo Foreign Exchange Market at 31st March 2013.
EBITDA = operating income + depreciation expenses + amortisation of goodwill attendant on the management integration of Hankyu and Hanshin. EBITDA figures are rounded to the nearest ¥100 million.
Free cash flow = cash flows from operating activities + cash flows from investing activities
ROA = ordinary income/total assets (average of period-start and period-end totals)
ROE = net income/equity (average of period-start and period-end totals)
D/E ratio = interest-bearing debt/equity
Average vacancy rate figures are overall rates for the Umeda downtown area at the end of March for major rental office buildings (including properties not owned by the Group) with a total floor area ofat least 3,300m2. Based on Latest trends in the office-building market in Osaka, Miki Shoji.
Annual number of passengers carried

Revenues from operations:¥682.4 billion(up ¥32.7 billion or 5.0% from the previous fiscal year)

Operating income: Factor analysis (YoY change)(¥ million)
FY 2 0 1 273,809FY 2 0 1 3+7,861
Real Estate+2,442Entertainment and Communications+2,369Urban Transportation
Travel and International Transportation +1,269
Hotels +794
Retailing +54
Other -454
Adjustments -226
87,921

Operating income: ¥87.9 billion(up ¥14.1 billion or 19.1% from the previous fiscal year)
Revenues from operations increased by 5.0%, or ¥32,735
million, to ¥682,439 million, due to a year-on-year increasein condominium unit sales in the Real Estate Business andthe subsiding impact of the Great East Japan Earthquake
primarily on the Travel and Hotels businesses. In line withthis growth, operating income increased 19.1%, or ¥14,111
million, to ¥87,921 million.

Net income: ¥39.7 billion (up ¥0.5 billion or 1.1% from the previous fiscal year)
Net non-operating expenses deteriorated 35.3%, or ¥4,590 million, year on year to ¥13,006 million mainly due to a decline in
non-operating income accompanying a rise in equity in incomeof affiliates from an increase in our stake in the equity affiliate
H2O Retailing Corporation in the previous fiscal year.
Net extraordinary loss improved 72.7%, or ¥9,251 million, year
on year to ¥12,721 million partly due to recognition of impairment
losses on land used for major development projects during theprevious fiscal year. This result occurred despite posting a provision

 et income:N
Factor analysis(YoY change)

for loss on removal of property and equipment related to therebuilding of Dai Hanshin Building and Shin Hankyu Building.
At the same time, income tax payments surged 559.6%,
or ¥18,015 million, year on year to ¥21,234 million due to anincrease in income taxes-deferred accompanying the cessationof reforms to the tax system in Japan that had brought down
corporate tax rates until the previous fiscal year.
The above factors and the increase in operating income pushed
net income up by ¥450 million year on year to ¥39,702 million.

Increase in revenues from operations
Decrease in extraordinary loss (chiefly decrease in loss on impairment of fixed assets)
Decrease in non-operating expenses (primarily a decrease in interest expenses)
Increase in operating expenses and cost of sales of transportation
Increase in selling, general and administrative expenses
Decrease in non-operating income (primarily decrease in equity in income of affiliates)
Decrease in extraordinary income (primarily due to a decrease in gain on contributions for construction)
Increase in income taxes (including income taxes-deferred)
Increase in minority interests in income+¥32.7 billion+¥14.1 billion+¥2.3 billion-¥17.5 billion-¥1.1 billion-¥6.9 billion-¥4.9 billion-¥18.0 billion-¥0.3 billion

Interest-bearing debt: ¥1,126.6 billion (down 4.8% or ¥57.0 billion from the previous fiscal year)
The balance of interest-bearing debt decreased by 4.8%, or¥57,014 million, year on year to ¥1,126,633 million due to net

cash from operating activities surpassing capital investment outlays for rebuilding of Umeda Hankyu Building and other works.

Key Financial Indicators (Graphs)

Operating and Business Environmental Data

Revenues from Operations(¥ billion)
800

Operating Income/Operating Income Margin

752.3
683.7

600

653.3 638.8 649.7(%)(Thousand)(Thousand)

100

20

800,000

300,000

80

60

87.9
77.8

12.1

11.4

400

70.1
10.7

73.8
64.7
10.1

11.4

700,000
15

12.9

Total

10

200,000

400,000

20

200,000

Total
Changes in method of recognition for Kobe Rapid
Transit Railway Line (1st October 2010)

Commuter pass

300,000
5

Opening of Hanshin Namba Line
(20th March 2009)

600,000
500,000

40
200

Annual Number of Passengers Carried/Hanshin Electric Railway(¥ billion)

90.7

682.4

Annual Number of Passengers Carried/Hankyu Railway

100,000

Other tickets

Commuter pass
Other tickets

100,000
0
2009

2010

2011

2012

2013 (FY)2008

Net Income

2010

2011

39.3

39.7

2013

03

(FY)

(Times)

(%)

1,500

4

14

900

20.6

1,271.1 1,275.6 1,282.6 1,251.7

2.7

2.8

1,183.6

2.7

2.3
2

300

0.6
2008

2010

2011

2012

2013 (FY)

4
2

1

0
2009

2008

2009

2010

2011

(¥ billion)
2,500

2012

2013

2,348.5 2,307.3 2,337.3 2,314.7 2,274.4 2,281.0

2,000

1,500

5

4

3.3

3.2
2.5

1,000

2.2

500

1

0

0
2008

2009

2010

2011

524.8
476.6 473.9 480.6 486.9 7.9

2012

10

7.4

8

2013

(FY)

* ROA = ordinary income/total assets (average of period-start and period-end totals)

03

(FY)

04

05

Source: Miki Shoji, Latest trends in theoffice-building market

06

07

08

09

10

11

12

13

(FY)

* S um of tier 1 and tier 2 operators for bothHankyu and Hanshin* A mong tier 2 operators, we have modified
our method of recognising Kobe Rapid Transit
Railway Line’s passenger volumes followingchanges to its management organisation,effective October 2010 (for both Hankyu andHanshin-operated stretches of the line)

Source: Compiled by the Group based on data from Toyo Keizai, Inc.’s Local Economy Directory
and the Ministry of Internal Affairs and Communications Basic Resident Register

Umeda area
Tokyo business areas (all)
2008

2009

2010

2011

2012

2013

* Areas served by Hankyu and Hanshin lines:
Below are lists of areas with Hankyu Corporation and Hanshin Electric Railway stations (includingtier 2 operators).
Osaka Prefecture: Osaka City (Fukushima, Konohana, Nishi, Naniwa, Nishi-Yodogawa, HigashiYodogawa, 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); and Amagasaki, Nishinomiya, Ashiya, Itami, Takarazuka and Kawanishi cities
Kyoto Prefecture: Kyoto City (Nakagyo, Shimogyo, Ukyo, Nishikyo, out of a total of 11 wards); andMuko and Nagaokakyo cities and Oyamazaki town

4

2.3

3.8
2

0.1

104

102

0
2009

The Great Hanshin (Kobe) Earthquake

Kansai area

100
99
98

0
2008

105

101

4.4

200
100

13

103
6

300
2

12

(%)

573.2

3

2.0

11

Population Trends in Areas Served by Hankyu and Hanshin Lines (1991=100)

400

2.8

10

Osaka businessareas (all)(As of 31st March of each year)(¥ billion)
600
500

09

Significant increase in vacancy rates in the Umeda area andOsaka’s business areas overall following the opening of
GRAND FRONT OSAKA

2007

(FY)

Equity/ROE
(%)

08

0

* D/E ratio = interest-bearing debt/equity

Total Assets/ROA

07

10

6

2.0

10.8

10

06

8

2.6

600

05

12

1,126.6
3

18.1

04

Average Vacancy Rates of Rental Office Buildings (Tokyo/Osaka Business Area)(¥ billion)

1,200

30

0

2012

Interest-Bearing Debt and D/E Ratio(¥ billion)
40

20

2009

0

0

0

0
2008

2010

2011

2012

2013

(FY)

* ROE = net income/equity (average of period-start and period-end totals)

Areas served by Hankyu and Hanshin lines

97
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (CY)Interview with the President

Fiscal 2013 Performance
The steady performance of each Group business has led to a substantial increase in operating
income, while ordinary income and net income reached record highs. In addition, we are steadilybuilding a base to reach the next growth stage underpinned by the progress being made towards
improving our financial standing, which has been one of our outstanding issues.
An extraordinary loss of ¥12.7 billion was recorded in the fiscal 2013 account settlement. Nevertheless, this amount provides
for future losses due mainly to the posting of estimated demobilization costs on fixed assets (provision for loss on removal ofproperty and equipment: approximately ¥4.4 billion) generated
by the Umeda 1-1 Project (Dai Hanshin Building and Shin Hankyu
Building rebuilding projects) as well as the recording of a loss
from the transfer of the Hotel New Hankyu Kochi (restructuringcosts: approximately ¥2.2 billion), the final stage of our restructuring of the Hotels Business.
Turning to the improvement our financial standing,the investment in growth undertaken during the current
Medium-Term Management Plan has paid off, with EBITDA
steadily increasing ¥11.6 billion year on year to ¥145.1 billion,
and interest-bearing debt shrinking significantly from ¥1,183.6
billion in fiscal 2012 to ¥1,126.6 billion in fiscal 2013 mainly
due to a detailed review of capital investment. As a result, theinterest-bearing debt/EBITDA ratio, the Group’s most important
performance indicator, improved greatly from 8.9 times in fiscal
2012 to 7.8 times in fiscal 2013, enabling the Group to steadilybuild a base to reach the next growth stage.

In fiscal 2013, conditions were uncertain mainly due to power
supply problems following the Great East Japan Earthquake andconcerns over a global economic recession amid prolonged
European debt issues. Nevertheless, signs of an economic recovery were seen in some sectors primarily on the back of an ongoingweakening of yen rates until the end of the fiscal year and higher
stock prices. Under these circumstances, the Real Estate Businessrecorded a significant year-on-year jump in condominium unit
sales and a steady rise in occupancy rates for the Umeda Hankyu
Building Office Tower. In the railway business, the Hankyu andHanshin rail lines both performed steadily*1 thanks to the grandopening of the Umeda Flagship Store of the Hankyu Department
Store. In addition, we saw a recovery primarily in the Travel andHotels businesses from the negative impact of the Great East
Japan Earthquake during the previous fiscal year. Strong sales
in the Travel Business were recorded for overseas travel mainly
to Europe. In the Entertainment and Communications business,the stage business experienced a year-on-year increase in ticket
sales. As a result of the overall firm performance of each business,revenues from operations increased 5%, or ¥32.7 billion, year
on year to ¥682.4 billion, operating income rose 19.1%, or ¥14.1
billion, to ¥87.9 billion, ordinary income grew 14.6%, or ¥9.5
billion, to ¥74.9 billion, and net income improved 1.1%, or ¥0.45
billion, to ¥39.7 billion. Among these increases, ordinary income
and net income reached record highs, while operating income
and operating income margin (12.9%) were at the highest levelsof any major listed private railway operator group.*2*1 Railway operation revenue   Hankyu +1.1%   Hanshin +1.2%*2 Private railway operators excluding the Japan Railway Group

Major Private Railway Groups Operating Income and Operating Income Margin (Fiscal 2013)(¥ billion)
140
120
100
80
60
40
20

Operating income

12.9

(%)
14

Operating income margin

11.9
9.1

87.9
5.2

52.5

55.7

8.6
5.1
47.5

44.1

7.1

8.3

9.4

12

6.2

5.3
32.3

28.0

10

8.5

8

5.2

6
4

23.3

23.0

22.0

20.8

19.1

17.6

Sotetsu
Holdings

KeikyuCorporation

Nishi-Nippon
Railroad020Hankyu Hanshin
Tokyu
Holdings
Corporation

Tobu
Railway

Source: Account settlements of each company

Kintetsu Odakyu Electric
Corporation
Railway

NagoyaRailroad

Keio
Keihan Electric Keisei Electric Nankai Electric
Corporation
Railway
Railway
RailwayConsolidated Six-Year Summary
FY2008FY2009Result of Operations (millions of yen and thousands of U.S. dollars): *Consolidated Financial Review

FY2010FY2011FY2012FY2013

FY2013

Analysis of Operating Results for fiscal 2013 (fiscal year ended March 2013)

1¥752,300¥683,715¥653,287¥638,770¥649,703¥682,439$7,259,989

Operating income

90,724

77,82370,12664,74373,80987,921

935,330

EBITDA*

145,200

135,300

133,200

127,100

133,500

145,100

1,543,617

Income before income taxes and minority interests

26,09834,06433,89932,76043,41962,192

661,617

Net income

627

20,55010,79318,06839,25239,702

422,362

Comprehensive income——

12,541

14,72844,99254,081

575,330

Capital expenditure

134,307

109,688

132,386

68,431

55,26759,512

633,106

Depreciation and amortisation

51,57754,79860,41859,66956,96854,540580,213

Revenues from operations

2

Cash Flows (millions of yen and thousands of U.S. dollars):
Cash flows from operating activities¥ 74,902¥108,597¥146,955¥103,252¥124,525¥127,655$1,358,032

Cash flows from investing activities(100,058)(115,047)(132,737)(62,516)(44,295)(58,923)(626,840)

Cash flows from financing activities

36,718

7,014(24,200)(39,544)(78,978)(69,195)(736,117)

Increase (decrease) in cash and cash equivalents

11,403(2,174)(9,680)

474

767

817

8,691

Cash and cash equivalents at end of year

31,16630,69021,44022,592

23,57225,581

272,138

Revenues from operations for the year under review increased by¥32,735 million (5.0%) year on year to ¥682,439 million. This was
mainly due to a year-on-year increase in condominium sales in theReal Estate Business as well as a recovery centered on the Traveland Hotels businesses from the impact of the Great East Japan
Earthquake during the previous fiscal year. In addition, the Travel
Business benefited from robust performance in overseas travel.
In the Entertainment and Communications Business, revenues inthe stage revue business were firm, and Himeji Cable Television
Co., Ltd. along with other companies were added to the scope
consolidation.
Operating income posted a year-on-year increase of ¥14,111
million (19.1%) to ¥87,921 million thanks to the aforementioned
rise in revenues as well as successful cost-cutting initiatives by all of
the Group’s core businesses.
Ordinary income grew ¥9,520 million (14.6%) year on year

Analysis of Operating Income(¥ million)

Financial Position (millions of yen and thousands of U.S. dollars):

476,639

Total net assets

1,271,100

Interest-bearing debt

73,809FY2012¥2,348,476 ¥2,307,332 ¥2,337,331 ¥2,314,669 ¥2,274,380 ¥2,281,007 $24,266,032

Total assets

473,878
1,275,620

480,633
1,282,583

486,947
1,251,665

524,801
1,183,647

573,154
1,126,633+32,735

Increase revenues from operations

6,097,383

Increase in personnel expenses -28

11,985,457-1,389

Increase in expense¥  0.50¥ 16.28¥  8.55¥ 14.32¥ 31.13¥ 31.48

$0.33

0.41

16.18

8.51

14.27

31.13

31.47

0.33

Net assets

369.25366.96371.70377.17407.01443.63

4.72

Dividend

5.00

5.00

5.00

5.00

5.00

5.00

0.05

Operating income margin (%)

12.1

11.4

10.7

10.1

11.4

12.9

—

3

ROA (%)*

3.2

2.5

2.2

2.0

2.8

3.3

—

ROE (%)*4

0.1

4.4

2.3

3.8

7.9

7.4

—

Interest-bearing debt/EBITDA (times)

8.8

9.4

9.6

9.8

8.9

7.8

—

Net income—Diluted-17,490

Increase in operating expenses and cost of sales of transportation

Per Share Data (yen and U.S. dollars):
Net income—Basic

to ¥74,914 million mainly due to a decrease in interest expenses
in line with lower interest-bearing debt (consolidated basis). This
result occurred despite a decline in non-operating income causedby the absence of a rise in equity in income of affiliates, which wasrecorded in the previous fiscal year following an increase in the
Company’s equity stake in H2O Retailing Corporation (an affiliatedcompany under the equity method).
Net income increased by ¥450 million (1.1%) year on year to¥39,702 million primarily due to an improvement in net extraordinary loss. This result occurred despite a year-on-year rise in income
taxes, which had been deferred in the previous fiscal year as a resultof a revision of the taxation system, including a reduction in thecorporate income tax rate.

Decrease in taxes +110

+242

Decrease in depreciation and amortisation

Increase in selling, general andadministrative expenses-1,135

Increase in amortisation of goodwill -69

87,921FY2013

YoY difference +14,112

Ratios:

19.9

20.1

20.1

20.6

22.6

24.5

—

5

Debt/equity (D/E) ratio (times)*

2.7

2.8

2.7

2.6

2.3

2.0

—

Interest coverage ratio (times)*6

4.0

3.4

3.0

3.0

3.7

4.8

—

Equity ratio (%)

Others:Number of outstanding shares (thousands)
Number of employees

Segment Information
The following table shows business performance for each core segment. For a review of these results, please refer to the page indicated at thefoot of the table.
(¥ million)
Urban Transportation

Real EstateEntertainment andCommunications

Travel andInternational
Transportation

FY2013

193,631

196,711

108,608

FY2012

192,718

176,114102,313

HotelsRetailing

Other

Adjustments

Consolidated

70,84064,69753,25336,045-41,348

682,439

67,57164,09053,85331,334-38,293649,703

Revenues from operations

1,271,406

1,271,406

1,271,406

1,271,406

1,271,406

1,271,406—

Difference+913+20,597+6,294+3,269+607-600+4,710-3,055+32,735

19,89220,80520,93821,302

20,811

20,751—

YoY (%)

0.5%

11.7%

6.2%

4.8%

0.9%

-1.1%

15.0%

-8.0%

5.0%

FY201334,711

36,994

12,584

4,441

525

1,387

307

-3,031

87,921FY2012

32,342

29,133

10,141

3,171

-269

1,333

761

-2,80473,809Difference+2,369+7,861+2,442+1,269

+794

+54

-454

-226

+14,111

YoY (%)

7.3%

27.0%

24.1%

40.0%

—

4.1%

-59.7%

-8.1%

19.1%

*1 The U.S. dollar amounts have been translated, for convenience only, at ¥94 = $1, the prevailing exchange rate on the Tokyo Foreign Exchange Market as of 31st March 2013.

*2 EBITDA = operating income + depreciation expenses + amortisation of goodwill attendant on the management integration of Hankyu and Hanshin
EBITDA figures are rounded to the nearest ¥100 million.
*3 ROA = ordinary income/total assets (average of period-start and period-end totals)*4 ROE = net income/equity (average of period-start and period-end totals)*5 D/E ratio = interest-bearing debt/equity*6 Interest coverage ratio = (operating income + interest and dividend income)/interest expense

Operating income/loss*Regarding other businesses, in spite of higher construction revenues, earnings fell mainly due to an upswing in advertising expenses in the card business.

Review of Financial Position

Consolidated Capital Expenditure and Depreciation and Amortisation

1. Assets, Liabilities and Net Assets

2. Cash Flows

Total assets at the end of the fiscal year under review increased by¥6,627 million from the previous term-end to ¥2,281,007 million.
This was mainly the result of an increase in the market value ofinvestment securities accompanying an upswing in stock prices
extending until the end of the fiscal year under review.
Total liabilities decreased by ¥41,725 million from the previous term-end to ¥1,707,853 million, due partly to a reduction ininterest-bearing debt.
Net assets increased ¥48,352 million from the previous termend to ¥573,154 million on an increase in retained earnings.
Equity came to ¥559,399 million, an increase of ¥46,106 million
over the previous fiscal year-end. This was the result of an increase
in retained earnings mainly due to the posting of net income aswell as a rise in valuation difference on available-for-sale securities
that primarily reflected higher stock prices.
As a result, the equity ratio stood at 24.5%, and ROE was 7.4%.

Cash and cash equivalents increased by ¥2,008 million from theprevious term-end to ¥25,581 million.
Net cash provided by operating activities amounted to¥127,655 million, net cash used in investing activities totaled¥58,923 million, and net cash used in financing activities was¥69,195 million.
The following is an analysis of year-on-year changes in eachcash flow category.

(1) Cash Flows from Operating Activities
Net cash provided by operating activities increased by ¥3,129 million from the previous fiscal year. This was largely due to an increasein operating income that offset a decrease in inventories.

Capital expenditure in the fiscal year under review (consolidated basis; including intangible assets) increased by ¥4,245 million (7.7%) year on
year to ¥59,512 million.
The following is a breakdown for each business segment.
FY2013YoY

Urban Transportation

25,441 (Millions of yen)

25.1 %

Real Estate

25,235-7.8

Entertainment and Communications

4,265

-3.8

Travel and International Transportation

1,663

67.1

Hotels

1,931

48.0

Retailing

702

-3.0

Other

401

23.7

Total

59,642

7.5(2) Cash Flows from Investing Activities

Adjustments

-129

—

Net cash used in investing activities increased by ¥14,627 million.
This was chiefly due to a rise in expenditures for the purchases ofproperty and equipment.

Consolidated

59,512

7.7(3) Cash Flows from Financing Activities

Urban Transportation

Travel and International Transportation

With a focus on safety and service improvement, the railway business invested in elevated tracks (to allow lines to cross over roads
without the need for level crossings) and general facility improvements as well as in rebuilding and improving existing rolling stock.
In bus and taxi businesses, vehicles were upgraded.

In the Travel and International Transportation Business, Hankyu
Travel International Co., Ltd. upgraded core systems in the travelbusiness.

Net cash used in financing activities decreased by ¥9,783 million. Thiswas due partly to a decline in short-term borrowings.

Trends in Cash Flow Indicators

Real Estate
FY2009FY2010FY2011FY2012FY2013Equity ratio (%)

20.1

20.1

20.6

22.6

24.5

Equity ratio (%) (market value basis)

24.4

23.4

20.9

20.0

31.5

Cash flows/interest-bearing debt ratio (times)

11.7

8.7

12.1

9.5

8.8

Interest coverage ratio (times)

3.4

3.0

3.0

3.7

4.8

Notes:
Equity ratio = equity/total assets
Equity ratio (market value basis) = market capitalisation/total assets
Cash flows/interest-bearing debt ratio = interest-bearing debt/operating cash flows
Interest coverage ratio = (operating income + interest and dividend income)/interest expense* Each index has been calculated in accordance with financial indicators on a consolidated basis.
* Market capitalisation has been calculated as follows: year-end closing stock price X total shares issued at year-end (after deduction of treasury stock).

3. Fund Procurement
During the fiscal year under review the outstanding balance ofinterest-bearing debt (consolidated basis) declined by ¥57,014
million to ¥1,126,633 million at the end of the fiscal period. This
reflected the fact that total net cash provided by operating
activities outweighed capital expenditure outlays, including for therebuilding of the Umeda Hankyu Building. The ratio of consolidated
interest-bearing debt divided by EBITDA (operating income before
amortisation), the benchmark we use for assessing the soundnessof our financial position, stood at 7.8 times (8.9 times in the previous fiscal year).

In the real estate leasing business, Hankyu Corporation completed
the rebuilding works at Umeda Hankyu Building and the construction of the Shin-Osaka Hankyu Building, as well as renovation andrepair work on rental buildings operated by Hankyu Corporation,
Hanshin Electric Railway Co., Ltd., and Hankyu Realty Co., Ltd.

HotelsIn the Hotels Business, Hankyu Hanshin Hotels Co., Ltd. newly
constructed the REMM Shin-Osaka hotel and carried out interior
refurbishing work on other hotels.

Retailing
In the Retailing Business, Hankyu Retails Corporation constructed
new directly operated outlets, including the asnas convenience
store in Hankyu Sanban Gai shopping centre.

Entertainment and Communications
In the communication and media business, Itec Hankyu HanshinCo., Ltd. undertook construction to install public wireless LAN,
while investments targeted acquisition of cable TV terminal equipment (Bay Communications Inc.). In addition, in the stage revue
business, Hankyu Corporation financed improvement and renewalof the Takarazuka Grand Theatre.

Depreciation and amortisation decreased by ¥2,428 million (4.3%)
from the previous year (consolidated basis) to ¥54,540 million.