Kintetsu Group
Integrated Report

Kintetsu Group Management Philosophy“To Support Daily Life,To Create More Value.”
We support your peace of mind, with sincerity.
We create new value for your life, by challenge.
We contribute to your community, through collaboration.

1

Kintetsu Group Integrated Report 2022

Kintetsu Group Sustainability Policy
The Kintetsu Group aims sustainable growth, andcontributes to the realization of prosperous society
for next generation, by creating new value throughco-creation with various people.

Kintetsu Group Integrated Report 2022

2

Editorial Policy for Kintetsu Group Integrated Report 2022
The purpose of this report is to offer a summary of the Kintetsu Group’s business activities and, from a longterm perspective, the value that it provides to society to shareholders, investors, and varied other stakeholders, in asystematic and easy-to-understand manner.
Through the publication of this report, we will further improve everyone’s understanding of and familiarity with the
Kintetsu Group, and we will also work to further enhance our communication and raise our corporate value.

2022 Highlights
Contents

SectionMessages from the Top Management

Explanations of business portfolio reforms and how co-creation ismaking society richer

Section 1

Kintetsu World Express (KWE)

Intro to KWE, and aims and impacts of making it a wholly-owned
subsidiary

Section 1–4

Value Creation/
Materiality (Priority Issues) for Sustainability

Value Creation Process/Risks, Opportunities, Promotion Frameworks,
Initiatives, and KPIs

Section 3 & 5

Messages from External Corporate Officers

Explanations of the direction of future development and how we are
ensuring management is soundSection 3

Business Strategies of Major Companies

The heads of the major group companies outline the outlooks fortheir businesses

Section 4

Information Disclosure Related to TCFD

Analysis of the future impacts of climate change on our businesses,
and how we are responding

Section 5(pp. 64–68)

Human Rights/Human Capital

Details on our Fundamental Policy on Human Rights and Human
Resource Development and Work Environment Improvement Policy

Section 5(pp. 73–76)

Period covered

Reference guidelines, etc.

Figures: April 1, 2021 to March 31, 2022
Initiatives: April 2021 to November 2022

Scope covered
Figures: Kintetsu Group Holdings and consolidated subsidiaries
Initiatives: Kintetsu Group Holdings and group companies

International Integrated Reporting Council (IIRC)“International Integrated Reporting Framework”● Ministry of Economy, Trade and Industry“Guidance for Collaborative Value Creation”● Global Reporting Initiative“GRI Sustainability Reporting Standards”● TCFD Consortium“Guidance on Climate-related Financial Disclosures 2.0 (TCFD Guidance 2.0)”●

Disclosure of various information
Both are posted on our website.

Contents
Integrated report(this report)

This report systematically introduces the Group’s business activities and the value it provides to society.

Securities report

This is the report prepared and submitted by the Company to the Kanto Local Finance Bureau inaccordance with Article 24 (1) of the Financial Instruments and Exchange Act.
We list detailed information related to our financial situation.

Corporate governance report

This is the report that our company has submitted to the Tokyo Stock Exchange in accordance with the
Corporate Governance Code.
Details our corporate governance approach, framework, etc.

Detailed sustainability
information

More detailed data and information on our initiatives relating to the environment, safety, peace of mind,
personnel, and other sustainability topics is available on our website: https://www.kintetsu-g-hd.co.jp/csr/

Safety report

This is the report prepared and published by Kintetsu Railway Co., Ltd. and other railway companies in theGroup in accordance with Article 19-4 of the Railway Business Act, which describes their efforts to ensure
the safety of transportation.

Forward-looking statements
This report contains statements regarding future performance. Such statements are not guarantees of future performance and are subject to risks anduncertainties. Please note that future performance may differ from planned figures due to changes in the business environment and other factors.

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Kintetsu Group Integrated Report 2022

Contents

1

Kintetsu Group Management Philosophy
Kintetsu Group Sustainability Policy

3

Editorial Policy

1 Messages from the Top Management
5

Messages from the Group CEO and President

2 Overview of the Kintetsu Group9The History of the Kintetsu Group

11

Business Overview

13

Kintetsu World Express

15

Business Area

19

Financial / Non-Financial Highlights

3 Kintetsu Group’s Value Creation
21

Value Creation Process

23

Kintetsu Group Sustainability Policy &Materiality (Priority Issues)

27

Messages from the External Corporate Officers

4 Business Strategies
29

Medium-Term Management Plan Progress

33

Kintetsu Railway Co., Ltd.

37

Kintetsu Real Estate Co., Ltd.

39

Kintetsu World Express, Inc.

41

Kintetsu Department Store Co., Ltd.

43

KINTETSU RETAIL HOLDINGS CO., LTD.

45

Kintetsu Miyako Hotels International, Inc.

47

KNT-CT Holdings Co., Ltd.

5 Initiatives for Materiality
Value Creation

49

Creating a Lifestyle that Anticipates Changes inValues51

Energizing Communities by Enhancing the
Network

53

Enriching People and Communities with Travel

57

Contributing to the realization of a decarbonized
and recycling-oriented society

Business foundations

69

Ensuring Safety and Pursuing Peace of Mind73

Fostering Diverse Human Resources andSupporting Their Activities

87

Bolstering Our Governance and Risk Management98

Social contribution activities

99

Corporate Officers

6 Corporate Information
103 Financial Data
106 Kintetsu Group Companies
107 Company Overview and Stock Information

Kintetsu Group Integrated Report 2022

4

Messages from the Group CEO and President

Tetsuya Kobayashi

Toshihide Ogura

Representative Director andChairman of the Board, Group CEO

Representative Director andPresident

KWE joining the group expands our global reach and business domains.
We are helping society to develop and enabling people to lead happy
lives across generations.
Challenges Overcome by the Kintetsu Group5The Kintetsu Group dates back to 1910 with the founding

line and Osaka line rail gauge had been an unattainableof the Nara Tramway connecting the cities of Osaka and Nara.

challenge for many years. But the repair of the Nagoya line

We have always seen our role as bringing progress and good

after the typhoon provided the chance to widen the gauge,

fortune to local communities through our business, with aso the standardization of the Osaka and Nagoya lines was

focus on railways.

accomplished all at once, enabling a line to run directly

Over time, the group has faced existential turning points in

between the cities. The swift decision of then-president

its business numerous time. I shall describe the most salient

Isamu Saeki thus laid the foundation for the Kintetsu express

ones here.

rail network.

The Isewan Typhoon that struck Japan in September 1959

More than four decades later, in 2004, when the idea

impacted the Kinki and Tokai regions most heavily, causing

emerged to consolidate Nippon Professional Baseball’s

devastating damage to railway facilities in Mie Prefecture.

Pacific and Central Leagues into a single league, theBefore the natural disaster, standardizing the Nagoya

Osaka Kintetsu Buffaloes and the Orix BlueWave worked

Kintetsu Group Integrated Report 2022

domestic marketplace alone remains limited, we felt that we

gained their understanding and determinedly carried throughneeded to expand into the global marketplace to realize ourwith the decision.

growth potential, which would also boost our risk tolerance byObserving society undergoing many changes andadding business clients (B) to our base of individual customers

customer needs diversifying rapidly, we transformed the(C). By globalizing and elevating B-to-B consolidated sales

group’s organizational structure from having Kintetsu Railway

and operating profit to the level of our B-to-C business, weas the central hub into a pure holding company in 2015. The

are expanding the scale of our operations significantly andaim of that move was to strengthen the group’s organizational

creating a more balanced portfolio. We also plan to strengthen

management

cooperation within the group to build the economic value ofandestablish

each

group

company’s

independent management. Also, by creating a corporate
structure that makes it easy to create other businesses, welaid the foundation for future business progress.

the Kintetsu Group in a sustainable way.
Another goal we have is to further transform the group’s
corporate culture. Our business base has grown over time by

As adaptations were being made, the COVID-19 pandemic

valuing the history, culture, and lifestyles rooted in the local

hit in 2020, striking a major blow to the Kintetsu Group’s

region and community. Over time, we have pursued manybusiness, a portfolio that leaned heavily toward consumer

groundbreaking initiatives based on the safety-first approachsales (B-to-C) centered on transportation, leisure, logistics, andupon which our railway company was founded. With theother business areas dependent on personal consumption.

changeover to a pure holding company, we aim to build a

It became clear that there would be no going back to pre-culture that reflects the unique characteristics of the group’s

pandemic ways of thinking, working, and living. Since there isvarious businesses. With Kintetsu World Express joining us asa high likelihood that this ongoing crisis will persist, we decided

a global enterprise, we expect its energetic culture to have athat a bold new strategy would be needed, one that would

strong influence on the group, enabling a broader perspective

change the status quo and ready us at the forefront of times

and swift decision-making as we cultivate a corporate culture

to come. So, first, in 2021 we welcomed SAKAE CO., LTD.

of taking on challenges without undue fear of risk. We want

into the group, a maker of industrial products with a strong

this approach to be a source of growth for the Kintetsu Group.

position in the marketplace, then in 2022 we brought into theThrough such efforts, we aim to contribute to society in afold as a wholly-owned subsidiary Kintetsu World Express

broader sense for many years to come—not only along our(KWE), a global freight forwarder in the logistics industry.

railway lines—and continue to fulfill our social responsibility.

Allow me to talk about why we did this. As a corporate

Steady Implementation of the Medium-Term Management Plan to
Bounce Back from the COVID-19 Pandemic
In May 2021 we formulated the Kintetsu Group Medium-

rooted in their unique localities, and we will continue toTerm Management Plan 2024, taking the basic stance that

hold onto these assets as flagship hotels that represent

management reforms were necessary to develop new

their locality. For another eight hotels, we will focus solely

businesses and the dramatic growth of the Kintetsu Groupon hotel management, which lends us greater flexibility

as we recover from the COVID-19 pandemic. As noted on

while also presenting novel challenges. Our aim is topage 29 of this report, we have expedited implementation

improve the value of our hotel assets and their businessof the plan’s main measures.

performance by working with the Blackstone Group, whichAs part of this effort, in October 2021 we shifted to a

has a wealth of investment experience and expertise indual-axis strategy in the hotel business—both directly

hotel management. Blackstone is undertaking multi-billion

owning and operating some hotels while operating others

yen renovations of the Miyako Hotel Kyoto Hachijo andon lease. Hotels such as the Westin Miyako Kyoto andHotel Kintetsu Universal City, which will enhance their

Shima Kanko Hotel in Mie Prefecture have traditions deeply

appeal upon completion.

Kintetsu Group Integrated Report 2022

Messages fromthe Top Management

to give back to society. As Japan’s population shrinks and the

opposition from many quarters. Fans were unhappy, but we

Overview ofthe Kintetsu GroupThe decision to withdraw from pro baseball was met with

Kintetsu Group’s
Value Creationneed to generate reasonable profits as a corporation in order

Business Strategies

businesses. And that requires sound management, so weto improve the management structure of our leisure business.

Initiatives for Materiality

group, we aim to help people lead happy lives through our

professional baseball—a move that had long been planned

Corporate Informationout a merger and we withdrew from the business of6

We will also need to firm up and maintain the soundness

cost of providing those services. We also plan to investof our core railway business to be able to fulfill our social

capital to meet social demand, reform the systems andmission and provide a range of services in the areas along

structure of the railway business, boost productivity, andKintetsu lines that people depend on. In September 2022,

create appeal that will lead to new demand. We will continue

Kintetsu Railway obtained approval from the Minister of Land,

to develop automatic train operation (ATO) technologies toInfrastructure, Transport and Tourism for its first substantial

implement for greater safety, efficiency, and sustainability

passenger fare revision since 1995. We are fully aware thatin rail transportation, and we plan to support society by

the fares were approved as compensation for services ofproviding safe and comfortable services and enhancing thea highly public nature and we recognize the obligation thatvalue of the areas along our rail lines into the future.

comes with the mandate that the ticket price cover the full

Building Sustainable Operations beyond Expo 2025 and a Major IR Project
Expo 2025 Osaka, Kansai will be held in Yumeshima,

identifies seven priority issues for sustainability as businessOsaka. The establishment of an integrated resort (IR) is being

foundations, detailed on page 24 of this report. In short, theyplanned in the years after the expo to attract visitors from all

are: lifestyles, building community, tourism, the environment,over Japan and overseas. Over the long history of Japan,

safety and peace of mind, governance, and human resources.

the cities of Nara and Kyoto have been known as centers of

We are committed to “Energizing communities by enhancing

government and culture, while Osaka has been known as a

the network” in building community.

center of commerce and Kobe as a port city. Each city has

With the Osaka Expo and integrated resort plans looming,

its unique attractions, making the Kansai a diverse, multipolar

the Kintetsu Group has decided to take steps to boost theregion. We need to highlight its attractiveness and appeal tovitality of the Kansai region, including setting up direct trains

expo and IR visitors to increase the number of people visitingthat connect to our lines so that visitors to Yumeshima whoand settling in the area, thereby enhancing the vitality andwish to travel to Nara or Ise-Shima do not have to changesustainability of the Kansai region over the long term.

trains. We will also be enhancing the hub functionality of

The Kintetsu Group Sustainability Policy, formulated in 2021,

Osaka Uehommachi, our main terminal station. As our eastside hub on the east–west axis of Osaka, we will develop
Uehommachi and strengthen its connectivity to the Abeno
and Tennoji district, centered on ABENO HARUKAS. We will
be working with the government and other stakeholders toestablish the Uehommachi, Abeno, and Tennoji area overall
as a cultural and economic center of Osaka. As a provider ofvarious networks—both services and infrastructure—we arepromoting compact city development with low environmental
impact that takes advantage of unique local features,
especially around our hub stations in Osaka, Nara, and Mie
prefectures, to spotlight local appeal and enhance the value
along our rail lines.
In terms of environmental initiatives, we are systematically
preparing for the possibility of a large-scale disaster as
the risks from climate change grow, plus we are working
on energy-saving measures to reduce carbon emissions,particularly in railway operations. We also feel the acuteneed to work with all stakeholders to effect a modal shift toan energy-efficient railway with low environmental impact toachieve low-carbon goals and promote efficient resource use
in society as a whole.

7

Kintetsu Group Integrated Report 2022

In postwar Japan, there was a strong tendency for people

affected by the business. That would include not only ourto seek materialistic satisfaction to the exclusion of the social

customers, but our employees and business partners who

support networks that everyone had always relied upon. But

are involved in providing services, plus other stakeholders

an excessive pursuit of individualism and advantages forincluding local communities, shareholders, and investors who

oneself alone will not bring lasting satisfaction and prosperity.

support our business. Making people happy is what brings

In a society where people can be producers at times andsustainability to our business and society both. But also

consumers at others, helping each other when in need andimportant to consider is the happiness of future generations

casually interacting with each other in a spirit of equality, I

beyond those of us alive today.

believe there exists a shared good fortune that will serve theLet me talk about the efforts being made by the KintetsuGroup toward these ends.

next generation in good stead.
Especially in times such as these, with a lasting pandemic,

Unexpectedly, the COVID-19 pandemic has brought about

an unstable domestic and international situation, a globala shift in society that is enabling people to live distances away

climate crisis, and the difficulty of forecasting the future,from their employers and work remotely. Even the Japanese

we recognize our duty in the Kintetsu Group to support the

government has announced its Vision for a Digital Garden City

development of society. Drawing upon our more than 110

Nation to correct for the over-concentration of people andyears of history and corporate DNA of helping communities

resources in the Tokyo area. The plan encourages people

develop along our rail lines and contributing to people’s

to move to outlying areas to alleviate rural depopulation andhappiness, we will be expanding our business to a wider

related issues. This provides a chance for someone working

range of domains. We will also implement the plans neededin Tokyo, for example, to move to an area along one of ourto achieve our goals based on a future-oriented managementrail lines. To enable such relocations, we will need to put

approach, thereby helping enable people to lead happy lives

information out that makes people aware of the sincere allure

across generations.

of these areas, and at the same time provide a lifestyle thatis at least, if not more, materially and spiritually fulfilling thantheir current lifestyle. We feel it is our duty to create suchopportunities, in collaboration with the residents of those

Overview ofthe Kintetsu Groupto be enabling people to lead happy lives—anyone who is

Kintetsu Group’s
Value Creation

our wide-ranging businesses.

Business Strategies

The intrinsic purpose of running our business we consider

Messages fromthe Top Management

The Kintetsu Group’s Role in Building the World of Tomorrow

Initiatives for Materiality

areas, considering the Kintetsu Group’s many years of close
ties to local communities.
We must also work to enhance local vitality to set the stage
for welcoming new people. That will require making use ofdigital technologies and enlisting the expertise of people fromoutside the area to help revitalize local industry and carry on
local cultural traditions. Some areas along our rail lines once
flourished with industries based on natural resources, but due
Corporate Information

to environmental changes, a shortage of young people willingto take over those jobs, and other reasons, they are now incrisis. Such areas include southern Nara Prefecture, with aforestry industry based in the Kii Mountains, and Ise-Shima,
with a fishing industry based in the scenic Ise Bay and AgoBay. We feel that these communities should be developedby protecting and coexisting with the bountiful forests andseas so that they may flourish into the next generation. Suchdevelopment would include revitalizing industries that help
to mitigate social issues in ways fitting for the times andhanding down traditional culture to future generations along
historically significant rail lines. The interactions that unfold
from those processes among all sorts of people will lead tosuccess, and we feel that the Kintetsu Group can help, with

Kintetsu Group Integrated Report 2022

8

The History of the Kintetsu Group

1910

1945

1970

After its founding, new lines andintegration expanded the company’sbase, and marked the start ofbusiness diversification

The limited express network cameinto being and the company began toprovide pioneering services

The Osaka Expo in 1970 spurred thebuilding of the railway network andthe development of tourism in thearea

In 1910, Nara Tramway Co., Ltd. was establishedand later, with the completion of the Ikoma
Tunnel, the line between Osaka-Uehommachi
and Nara began operations. In the years that
followed, routes expanded toward places suchas Ise and Nagoya, while at the same time
department stores and amusement parks were
established alongside the railway lines.

1910

1920

Founding

During the period of recovery after World War II,
in order to provide comfortable train travel, thecompany introduced a fee-based seat reservation
system—the first private railway in Japan to doso—as well as the world’s first double-decker
train cars. Its department stores also brought inservices that anticipated customers’ needs, suchas through Japan’s first drug stores.

1930

1940

In order to attract Expo visitors to Nara and IseShima, the company undertook large-scale
projects, such as extending the Namba Line,
as well as developing tourism in Kashikojima,
an area that flourished as the unofficial second
venue for the Expo.

1950

1960
●

Began operation of a limited
express service between
Uehommachi and Nagoya

Began a directly managed
bus service business(Kasuga Okuyama Line)

1980

1970

1947

1929

1970

●

Opened the Toba Line and Namba Line
Began operations of direct limited
express services between Kashikojima
and Namba, Kyoto, Nara, and Nagoya

Transportation
Business

1910

Nara Tramway
Co., Ltd. wasestablished

1914

1948

1959

Began operationof a limited
express service
betweenUehommachi and
UjiyamadaOpened a line
betweenUehommachi andNara (Takamacho)

Real EstateBusiness

1950

1924

Began selling lotsin the Gakuemmae
Residential Area

Merged with Higashiosaka Land
and Buildings Co., Ltd., andtook over its land and housing
management business

Completedwork to widen
the gauge of
tracks on the
Nagoya Line

1969

Opened Kintetsu Kashikojima
Country Club

1973

1980

Completed theKintetsu Namba
Building

Began real estate and logistics operations

Business diversification

1953

Established Kinki Nippon Shoji Co., Ltd.
(now Kinsho Store Co., Ltd.)

Merchandise
Sales Business

1950

1936

Opened the entire
building of Daiki
Department Store (now
Uehommachi Store)

Opened Japan’s first drug store
at Kintetsu Department Store
Abeno Store

1969

Opened Hamanako Kintetsu Restaurantat the Tomei Expressway’s Hamanako
Service Area

1949
Established the Kintetsu Pearls
professional baseball club

1979

1968

Opened Miyako
Hotel Tokyo

Opened Miyako
Hotel San Francisco

Hotel and Leisure Business

1926

1941

1951

Opened Ayameike
Amusement Park

Established Kankyu Travel
Agents Limited (nowKNT-CT Holdings Co., Ltd.)●

1927
Established a rugby team(now Hanazono Kintetsu Liners)

Began capital
participation in Miyako
Hotels Co., Ltd.
● Opened the Shima
Kanko HotelInternational
Logistics Business

9

Kintetsu Group Integrated Report 2022

1948

1955

1970

Began handling internationalcargo and customers at
Kintetsu Railway Co., Ltd.

Began handling air
cargo at Kinki Nippon
Tourist Co., Ltd.

Established Kintetsu
Air Cargo
International Co., Ltd.

2020

The economic bubble burst, leading
to a much harsher environment forbusiness and corporate management

ABENO HARUKAS, bringing together
the Kintetsu Group’s strengths

The threat of the COVID-19 pandemic
is overcome and the opportunity it
presents for innovation seized

2000

Opened theHigashiosaka Line

2010

2009

1986

2006

The Kintetsu Group has used the COVID-19
pandemic as a chance to make structuralreforms—such as making Kintetsu World
Express, Inc. a wholly-owned subsidiary andgoing for dual-axis management style forthe hotel business—and has strengthened
its business foundation. It will aim to keep
operating as a corporate group that continues
to grow.

Began mutual direct operations with
Hanshin Electric Railway Co., Ltd.
between Nara and Sannomiya

2022

2020

2014

Grand Opening of
ABENO HARUKAS

Switched to a pureholding company
structure

Began operation of the Meihan
Limited Express Hinotori(between Namba and Nagoya)

Kintetsu Group’s
Value Creation

Opened the Keihanna Line

2020

2015

2013

1989

2002

2015

Began renovation business

Reorganized the real estate business

Opened Ten-Shiba,
the Tennoji Park
Entrance Area

Business Strategies

Began operation of the sightseeing
express Shimakaze(between Namba and Kashikojima,and Nagoya and Kashikojima)

2019

Opened the first overseas branch of theeel restaurant Edogawa in Taipei, Taiwan

2018
Established KINTETSU RETAILHOLDINGS CO., LTD.

1985

1994

2004

2016

2021

Opened Miyako
Hotel Osaka

Opened Shima Spain Village
theme park, “PARQUE ESPAÑA”
and Hotel Shima Spain Mura

Osaka Buffaloes Co., Ltd.
transferred its baseball business●

The G7 Ise-Shima Summit washeld at the Shima Kanko Hotel● Made Osaka Aquarium
Kaiyukan Co., Ltd. a subsidiary

Began a joint venture in
the hotel business withBlackstone

1989

2015

2022

Kintetsu Air Cargo International Co., Ltd. changed
its name to Kintetsu World Express, Inc.

Kintetsu World Express, Inc.
acquired all of APL Logistics Ltd’s
shares and made a subsidiary

Kintetsu Group Holdings Co., Ltd.
made Kintetsu World Express, Inc.
a wholly-owned subsidiary

Kintetsu Group Integrated Report 2022

Initiatives for Materiality

1990

In 2014, ABENO HARUKAS opened. The
Kintetsu Group worked together to provide
integrated services and so create new value,
and is making the Abeno and Tennoji area
better and busier.

Corporate Information

From the collapse of the economic bubble in1991 onward, the company’s desire to expand—aconstant from its founding—switched to a policy ofconcentrating management resources, particularly
alongside its railway lines. In conjunction with this,the company decided to undergo structural reforms
to achieve renewed growth; this included rationalizing
railway operations, reorganizing the real estatebusiness, and withdrawing from its baseball concerns.

Messages fromthe Top Management

2010

Overview ofthe Kintetsu Group

1990

10

Business Overview
Business Activities

Railways

Transportation
Business

We operate Japan’s longest private railway
network, which stretches across the Kinki andTokai regions. The railway handles travel between
the regions’ cities, as well as to and from tourist
sites, cities, and suburbs. It also operates otherservices around the region.

Bus services
Major group company
Kintetsu Railway Co., Ltd.

Operating in the Kinki, Hokuriku, and Chugoku
regions, we run fixed-route bus services,long-distance buses bound for various parts ofJapan, limousine buses, and sightseeing buses.

Real estate sales and Real estate leasing

Real EstateBusiness

Major group company
Kintetsu Real Estate Co., Ltd.

New
* Due to Kintetsu World Express, Inc.
becoming a consolidated subsidiaryin July 2022

International
Logistics
Business
Major group company
Kintetsu World Express, Inc.

Our real estate sales business provides
homes for people, particularly in the region’s
three largest cities, that match their lifestyles.
Through the use of energy-saving equipment
and other measures, we are considering how
best to coexist with the natural environment.
Real estate leasing involves running officebuildings as well as major terminal buildings
on Kintetsu lines and retail buildings. We arecontributing to community development,
particularly centered on our stations.

Air Freight

We use aircraft to carry high-added-value
products and urgent cargo. As well astransporting items between airports, we also
provide integrated transportation services,such as collecting and sending goods at origin
points and delivering them to destination sites,
using a network that straddles national borders.

Sea Freight

Using maritime craft, we carry a wide rangeof items of varied sizes. Our integrated marinetransportation service parallels that of our air
freight business, and includes services such

Department stores

Merchandise
Sales
Business
Major group companies
Kintetsu Department Store Co., Ltd.
KINTETSU RETAIL HOLDINGS CO., LTD.

We operate department stores andcommercial facilities, with many—including
Kintetsu Department Store Main Store Abeno
Harukas—located at major Kintetsu stations.
We have also expanded our franchise store
business, particularly in the food, housing, andservice industries. In terms of our e-commercebusiness, we operate a site that proposes awide range of goods unique to our department
stores to customers within Japan. For
customers overseas, we are selling throughpopular online shops, and focusing our efforts

HotelsHotel and
LeisureBusiness
Major group companies
Kintetsu Miyako Hotels International, Inc.
KNT-CT Holdings Co., Ltd.

11

Kintetsu Group Integrated Report 2022

We operate the Miyako Hotels & Resorts
brand of hotels in Japan and overseas. We
offer a wide range of attractive services fromcasual urban hotels to luxury hotels.

Travel agency

We organize tours emphasizing tourists’safety and peace of mind, on the theme ofproviding memorable experiences andencounters for people around the globe. We
help customers of any age, young and oldalike, to achieve self-actualization and build acircle of friends through travel.

Taxi
services 4%

Realestate sales

Real estate
management 21%

37%(billion yen)

200

Operating revenue¥184.9 billion

100Real estateleasing042%

Other 5%Air freight47%

Operating revenue

2021

Operating profit

(FY)

-30

(billion yen)

30

(billion yen)

17.9

20

14.8

161.2

142.9

2019

2020

Operating revenue

10

184.9

2021

Operating profit

(FY)

0

(billion yen)

1000

80

62.4

17%

750

Operating revenue

Sea freight

31%

60

34.1

500

¥980.4 billion

19.7
250

40

980.4

20

609.1
544.5

Department
storesStores and restaurants

52%

Stores andrestaurants

48%

2019

2020

2021

(FY)

(billion yen)

400
200

Operating revenue

Operating revenue

Operating profit(billion yen)

10

392.7
5.1

313.1

5

188.2

0

¥188.2 billion

0

-1.5

-5

-4.6
2019

CinemaAquarium 2%
Cinema 2%

Hotels12%(billion yen)

¥166.6 billion

2020

Operating revenue

2021

Operating profit(FY)(billion yen)

500
250

Operating revenue

Travel agency

0* As these figures are from the period prior to the company’s consolidation, they are not included in consolidated balance sheets.

on selling products that have been made inJapan, as well as other items.

We run a number of facilities, including
Kaiyukan, one of the world’s largest aquariums,
and NIFREL, an interactive “aquazoo.” In thisway, we are providing opportunities toexperience the charm of living creatures andnature.

2020

Logistics

Reference figures

Aquarium

-20

300

0

We operate the Abeno Apollo Cinema, anurban cinema complex.

0

29.3

Logistics

We operate a number of various retail anddining formats, including supermarkets,convenience stores, restaurants, and cafes,
particularly in the areas along Kintetsu lines.
We have also been working to create new
businesses such as a craft beer business, aswell as expanding our shopping support
services such as online supermarkets andmobile supermarkets, in order to support therichness of daily life.

10

158.9

150.2

-2.7

2019

as customs operations in import and export
countries.
We predominantly make use of 3PL(Third-party logistics) services to handle ourcustomers’ logistics. Warehousing is thefoundation of logistics, and as such we don’t
just handle transportation and delivery, we
also deal with inventory management,
distribution processes, and customer needs.

221.7

-24.6

Real estate management

We manage and operate a wide range offacilities, including office buildings, commercial
facilities, hotels, cultural and sporting facilities,
and condominiums.

20

-10

We operate ferries, car rental services, themeparks, and other services, as well as engaging
in transportation advertising.

We also offer real estate brokerage and othersolutions and proposal-based contract workfor higher-grade renovations. In addition, we
have expanded our business to also coveragriculture, solar power generation, golf, andlife care.

(billion yen)30

0¥158.9 billionBus
services 15%

Operating profit

27.6

200
100

Operating revenue

Operating revenue

300

Messages fromthe Top Management

Other transportation-related business

63%

Maintenance ofrailway facilities 10%(billion yen)

Overview ofthe Kintetsu GroupWe support the safe operation of railroads byutilizing our expertise in electrical equipment,
railcar servicing, track maintenance, railway
structure design, and other areas.

Railways

Business Strategies

Maintenance of railway facilities

Other 8%0Initiatives for Materiality

We have expanded our business with a focus
on the areas along Kintetsu lines as a means for
local society to get around.

Corporate Information

Taxi services

Operating revenue and profit(FY2019–2021)

Kintetsu Group’s
Value Creation

Operating revenue breakdown(FY2021)

50

449.2

114.1

25

166.6

0

-3.6

84%

-25

-21.6
2019

-49.2
2020

2021

(FY)

-50

Kintetsu Group Integrated Report 2022

12

Kintetsu World Express
In August 2022, Kintetsu World Express (KWE) became a wholly-owned subsidiary of the Kintetsu Group.
Through even greater cooperation as part of the Kintetsu Group, we aim to increase value for bothorganizations.

Company overview
Kintetsu World Express has developed its
international integrated logistics business acrossthe globe, providing air freight, sea freight, andlogistics services. As a global logistics partner toits B-to-B clients, it provides optimized logistics.

Sales (FY2021 results)
Consolidated

Founded: May 5, 1948
Established: January 10, 1970
Business activities: International integrated logistics
Business areas: Japan, the Americas, Europe, the Middle East, Africa, East Asia,
Southeast Asia, and Oceania
Employees: 1,239 (unconsolidated); 17,069 (consolidated) (as of March 31, 2022)
Proportion of total operating revenue (FY2021)

Global network (as of September 30, 2022)

Other

Unconsolidated

980.4 billion ¥ 211.2 billion

45 countries 304 cities 687 locations

Cargo-handling volume (FY2021 results)

Cargo-handling volume world ranking (industry market data)

¥

Air

Sea

740,000 mt 710,000 TEUs

Air

Sea

9 th

18th

Logistics

17.4%¥ 980.4 billion

Sea freight30.8%* 1 TEU = 1 × 20’ container equivalentManagement Plan 2027

Air freight
47.1%

4.7%

Global Top 10 Solution Partner — A Global Brand Born in Japan● KWE’s brand recognition will continue to grow by our corestrengths: superior quality, a collective and competitive spirit,and a solutions-driven attitude.
● KWE’s market expansion will be paved by establishing ouridentity as a preferred partner across all regions.
● Through the merit of our work, KWE will become a company
that brings pride to its diversified and talented workforce.

Targets

FY2021 results

Operating revenue

1 trillion yen

980.4 billion yen

Operating profit

50.0 billion yen

62.4 billion yen

Air freight
Sea freightOver 1 million metric tons 740,000 metric tons
710,000 TEUs

Over 1 million TEUs

Business targets
Growth strategies

Strengthening the business platform

Enhance cooperation between Corporate Sales, Marketing & Operation (CSMO)
Targets Department and Regional Sales & Marketing (RSM) divisions● Increase global volume: Air freight to 1 million metric tons; Sea freight to 1 million TEUs●

Establish a group platform to support growth

Increase volume in Asia – Europe and the U.S. lane
Increase global volume

StrategyGroup governance

Sales activities/Marketing
Strengthen global procurement function

Strengthen the business platform

Premium order management provider (APLL segment)
Develop unique products (APLL segment)

Human resourcesIT
Finance/Accounting

KWE’s role in international transportation (for exports from Japan)
Japan
Exporting

Air Freight(Airline companies)

Outside Japan
Importing

KWE’s customers
Companies exporting
to/importing fromabroadCollection

Manufacturer
Trading company

13

Kintetsu Group Integrated Report 2022

Delivery
Local subsidiaries

KWE warehouses
After packing andcustoms, goods are
passed to airline andshipping companies
as KWE cargo.

Sea Freight(Shipping companies)

Customs/warehousemanagement/inventory
management/distribution
processing, etc.
Then delivery to the finaldestination.

Customer
Customer

Business
Air Freight

Overview ofthe Kintetsu GroupElectronics (mobile devices such as smartphones, PCs, electronics components, etc.), luxury brands,
automotive components, medical supplies and devices, semiconductor manufacturing equipment, etc.

Sea Freight

Logistics

Materials, products for mass retailers, non-urgent production components, clothing, general goods,
production equipment and machinery, optical devices, heavy plant equipment, etc.

KWE Group’s logistics locations: 317 warehouses with a total floor area of 2,047,540 m2

Examplecargo

Business Strategies

KWE handles a wide range of items, from electronics to automotive products, apparel for retail,aviation-related goods, and items used in healthcare. It creates and operates optimal solutions thatconsider each item’s specific characteristics from every angle.
Medical devices, external diagnosis equipment, reagents for research, analytical apparatus, smartphones,
semiconductors, communications equipment, electronics components, luxury brand items, etc.

Industry-specific solutions
With a long track record and deep industry-specificspecialist knowledge, and utilizing its global network, KWE
provides optimal solutions for each customer’s businessthat address their specific logistics issues.

Electronics

Automotive

Aerospace

Healthcare
EnergyIndustrial
RetailMain group companies
APL Logistics
APL Logistics Ltd (APLL) has 190 locations around the world
and more than 5,000 employees, and has expanded its logistics
business around the world as part of the KWE Group. In regions
across the globe, its specialists offer customers seamless support
at every step, from first order to final delivery, providing an ideal,
bespoke management service. APLL
can come up with the latest supply chain
solutions to contribute to varied logisticalissues faced by top corporate customers
expanding their businesses globally, in theretail, automotive, and other industries.

Company

Business activities

KINTETSU LOGISTICS
SYSTEMS, INC.

Domestic air freight transportation,
cargo vehicle transportation, andwarehousing

Kintetsu Cosmos, Inc.

Temp agency work, cargo handling, andpacking

Kintetsu World Express
Sales, Inc.

Agency work for international air andsea freight sales

Kintetsu Trading Service
Co., Ltd.

General affairs, agency work, andcustoms clearance procedures related
to import/export tasks

Kintetsu Global I.T., Inc.

R&D of IT systems

KWE Reinsurance, Inc.

Damage insurance

Kintetsu Group Integrated Report 2022

Initiatives for Materiality

Examplecargo

Kintetsu Group’s
Value Creation

As a Non-Vessel Operating Common Carrier (NVOCC), KWE offers its customers optimal solutions
from options including Less than Container Load (LCL), Full Container Load (FCL), and transportation
services for large machinery and equipment. In collaboration with the KWE Group company APL Logistics
Ltd (APLL), KWE works to bolster carrier partnerships, secure capacity, and create competitive, highquality services.
Also, in support of sustainability efforts, KWE’s Container Round Use (CRU) matching solutions andother services help to minimize CO2 emissions to reduce environmental impact.

Corporate Information

Examplecargo

Messages fromthe Top Management

Since 1948, KWE has provided comprehensive cargo and freight services. In addition to its longstanding partnerships with the world’s major airlines, KWE utilizes its knowledge and experience toachieve better lead times and assured capacity.
It also provides a one-stop service with end-to-end tracking, customs clearance, cargo insurance,
warehousing, and door-to-door service. This allows it to prioritize customer supply chain schedules,
budgets, and quality, while going the extra mile to engineer unique air cargo strategies.

14

Business Area
Kintetsu
Operational
Area

Creating an area full of wonder through a wide range of businesses
We are pushing ahead with community development and expanding into lifestyle-related businesses,
centered on our operational area, which covers the Kinki and Tokai regions. As well as supporting people’s
daily lives, we are making full use of the regions’ tourism potential to create excitement for visitors.

Kintetsu Line

Kyoto Pref.

Kintetsu Group Line
Other Line (interconnection section)
Other Line
JR Shinkansen Line

World Heritage
Historic Monumentsof Ancient Kyoto

Department Store/Commercial Facility
Hotel/Japanese Inn

Kyoto Subway

Main facilities in Kyoto area

Leisure Facility● The Westin Miyako Kyoto

Kyoto● Miyako City Kintetsu Kyoto Station● Miyako Hotel Kyoto Hachijo● Miyakomichi

Osaka Pref.
Osaka
International
Airport

Kintetsu Ayameike
Residential Area

Interactive
Aquazoo,
NIFREL

Hanshin Line

Asuka Country Club
Kintetsu Department Store,
Ikoma Store

Shin-Osaka
OsakaUehommachi
Tsuruhashi

OsakaNamba
OsakaOsaka Metro
Abenobashi

Kobe Airport

Kintetsu
Department Store,
Nara Store

Yamato-Saidaiji
Ikoma
Ikoma Sanjo
Amusement Park
Kintetsu Department Store,
Higashi-Osaka Store

Mikasa Ryokan
Nara Kasugaokuyama Tsukihitei

Kintetsu-Nara
World Heritage

Iga-Kambe
Iga Golf Course

Historic Monumentsof Ancient Nara

Kikyogaoka Golf Course

Nara Pref.

World Heritage
Buddhist Monumentsin the Horyu-ji Area

World Heritage

Shorenji Lake Hotel

Kintetsu Department Store,
Kashihara Store

Mozu-Furuichi
Kofun Group

Yamato-Yagi

Kashiharajingumae

KansaiInternational Airport

Enlarged viewShin-Osaka

Osaka Aquarium Kaiyukan

Osaka Metro
Midosuji Line
FOURZ HOTELKINTETSU OSAKA-NAMBA
Miyako City
Osaka Hommachi

Universal
Studios Japan
Yumeshima
World
Expo venue

Hotel Kintetsu
Universal City

Osaka-Uehommachi

OsakaNamba

Osaka
Aquarium Kaiyukan
Cosmosquare

Tsuruhashi

OsakaAbenobashi

Main facilities in Uehommachi area
● Sheraton Miyako Hotel Osaka● Kintetsu Department Store,
World Expo venue
Image courtesy of the Japan Association
for the 2025 World Exposition

15

Iga Tetsudo Line

Nara Park

Kintetsu Group Integrated Report 2022

Uehommachi Store● Uehommachi YUFURA

Mt. Yoshino Cherry blossoms

Hanayoshino
Country Club

YoshinoWorld Heritage
Sacred Sites and Pilgrimage Routes
in the Kii Mountain Range

Yoshino-Kumano
National Park

Convenience stores● FamilyMart: 86 stores

Supermarkets● Kinsho Store and Harves: 37 stores

Cable televisions

・Kintetsu Cable Network
・Kintetsu Cable Network Kyoto
・TV KISIWADA・Komadori Cable
・KCN Nantan
Subscribers(total for 5 group companies)

Cable television: approx. 350,000
Internet:approx. 230,000(as of September 30, 2022)
Kintetsu Department Store,
Nagoya Store (Kintetsu Pass’e)

Kintetsu-Nagoya

Aichi Pref.
Yoro Tetsudo Line

Hinotori, Meihan limited express(between Osaka-Namba andKintetsu-Nagoya)

Kyoto

KuwanaMiyako Hotel Yokkaichi
Kintetsu Department Store,
Yokkaichi Store

OsakaNamba
OsakaAbenobashi

Kintetsu-Yokkaichi

Kintetsu-Nagoya

Kintetsu-Nara

Overview ofthe Kintetsu GroupAONIYOSHI, sightseeing limited express(between Osaka-Namba, Kintetsu-Nara,and Kyoto)

Messages fromthe Top Management

Extensive limited express network withattractive trains

Chubu Centrair
International Airport
ShirokoBus services

Blue Symphony, sightseeing limited
express(between Osaka-Abenobashi and
Yoshino)Ise-Nakagawa

Hinotori Taxi

Business developmentin the Abeno/Tennoji area

Matsusaka

Ten-Shiba

IseshiUjiyamada

Abeno Lucias

Toba

Isuzugawa

JR T
enno
ji St ation
OsakTenn a Met
oji S ro
tatio
Osaka
n

Station-AbenobashiApollo Building

Ise Jingu

Mie Pref.

Shima Spain Village
Hotel Shima Spain Mura
Ugata

Miyako City
Osaka Tennoji

Hoop

Abeno Apollo Cinema

Ise-Shima National Park

Initiatives for Materiality

Taxi services
・Kintetsu Taxi
・NARA KINTETSU TAXI・Mie Kintetsu Taxi・Nagoya Kintetsu Taxi
・Sanco Taxi, etc.

Shimakaze, sightseeing limited
express(between Osaka-Namba, Kyoto, andKintetsu-Nagoya, and Kashikojima)

Osaka
Te n n o ji M e tr o
S ta ti o nTsu・Kintetsu Bus・Nara Kotsu Bus Lines・Nara Kanko Bus・Mie Kotsu
・Meihan Kintetsu Bus, etc.

Abeno and

Kintetsu Hamajima Country Club

Business Strategies

Kashikojima

Corporate Information

YoshinoKintetsu Group’s
Value Creation

Kintetsu Department Store,
Yokkaichi StoreABENO HARUKAS

Kashikojima
Miyako Resort
Okushima
Aqua Forest● HARUKAS 300 (Observatory)● Osaka Marriott Miyako Hotel● ABENO HARUKAS Art

Main facilities in the Kashikojima area

Museum● Shima Kanko Hotel● Kintetsu Department Store● Miyako Resort Shima Bayside Terrace

Main Store Abeno Harukas● Kashikojima Hojoen● Kintetsu Kashikojima Country Club
Shima Spain Village

ABENO HARUKAS and Ten-Shiba

Kintetsu Group Integrated Report 2022

16

JapanDevelopment in Japan Utilizing Our Group Strengths
Through our transport network—including buses, taxis, ferries—condominiums, office buildings, hotels,
travel facilities and other forms of infrastructure, we provide valuable services throughout Japan.
(as of September 30, 2022)● Transportation company● Department store/

Ishikawa

commercial facility● Hotel/Japanese inn● KITANIPPON KANKO BUS● Ishikawa Kintetsu Taxi
● Amagozen Service Area

Tochigi

Shiga
Okinawa● OKUNIKKO KOGEN HOTEL● Kintetsu Department Store, Kusatsu Store

Hyogo

Tokyo

● Miyako Hotel Amagasaki● Sheraton Miyako Hotel Tokyo● Kobe Kitano Hotel● Miyako City Tokyo Takanawa

Hiroshima● Hiroshima Kintetsu Taxi

Kintetsu
Operational
Area

Yamaguchi▶pp. 15–16● Bocho Bus Company

Sheraton Miyako Hotel Tokyo● Shunan Kintetsu Taxi

Kanagawa● Hagi Kintetsu Taxi

● HAKONE KOGEN HOTEL● Hagi Kanko Hotel

Shizuoka

Fukuoka● Hamanako Service Area

● Hokko Daiwa Taxi
● Miyako Hotel Hakata

Gifu

Aichi

● Gifu Kintetsu Taxi

Ehime
● EHIME KINTETSU TAXI

● Kariya Parking Area

● Kintetsu Toubi Taxi
● Miyako Hotel Gifu Nagaragawa

Wakayama

Oita● Kokudo Kyushi Ferry● Meiko Bus● Beppu Ropeway● Kintetsu Department Store,
Wakayama Store

Kariya Parking Area

Kokudo Kyushi Ferry

Kintetsu Real Estate・Condominium sales business
93,338 units in 797 buildings(cumulative, mainly in the Tokyo,
Osaka, and Nagoya areas)
・Detached homes sales business
16,889 homes, 25,206 land plots sold(cumulative, mainly in the Tokyo,
Osaka, and Nagoya areas)

Kintetsu facilities
・Approx. 800 operation andmaintenance facilities(mainly in the Tokyo, Osaka, andNagoya areas)

KINTETSU-COMMUNITY
・Approx. 100,000 homes managed(from Tokyo metropolitan area to Kyushu)

KNT-CT Holdings Group・Kinki Nippon Tourist (132 offices in Japan)
・Club Tourism International (13 offices in Japan)
・Kinki Nippon Tourist Corporate Business
・KNT Business Create
・Kinki Nippon Tourist Shoji

Hotel/Japanese inn
・23 Miyako Hotels & Resorts affiliated facilities in Japan

17

Kintetsu Group Integrated Report 2022

With Kintetsu World Express as a wholly-owned subsidiary, we will expand our business globally, to Asia,
Europe, the Americas, and elsewhere, centered on international logistics.
(as of September 30, 2022)

KWE Group

Messages fromthe Top Management

Worldwide Development Driven by Our Global Networks

Overseas

Hotel

Overview ofthe Kintetsu Group

TravelRestaurant
Railcar manufacturing

Business Strategies

Kintetsu Group’s
Value Creation

Kintetsu World Express

KWE Group

687

Japan

locations worldwide

45 countries 304 cities
324 warehouses/logistics facilities

APLL

8 companies

East Asia

21 companies

Southeast Asia & Oceania

20 companies

65 companies

Incl. 3 equity-method affiliates

Incl. 2 equity-method affiliates

Incl. 2 equity-method affiliates

Incl. 1 equity-method affiliate

Americas

Europe, Middle East, and Africa

Other businesses

7 companies

KNT-CT Holdings Group・KINTETSU INTERNATIONAL EXPRESS (U.S.A.), INC.
・KINTETSU INTERNATIONAL EXPRESS (CANADA) INC.
・KINTETSU INTERNATIONAL EXPRESS (OCEANIA) PTY. LTD.
・HOLIDAY TOURS MICRONESIA (GUAM), INC.
・Kintetsu International Express (China)
・KNT Taiwan

16 companies

2 companies

Incl. 1 equity-method affiliate

Initiatives for Materiality

Kintetsu World Express

Corporate Information

Miyako Hotel Los Angeles

Hotel・Miyako Hotel Los Angeles
・Miyako Hybrid Hotel Torrance, California

Restaurant
・Edogawa Taipei Zhongshan Store

Railcar manufacturing
・KINKISHARYO International, L.L.C.

Kintetsu Group Integrated Report 2022

18

Financial Highlights* As Kintetsu World Express, Inc. (KWE) became a consolidated subsidiary in July 2022, fiscal 2022 (forecast) includes KWE’s earnings forecast forthe second quarter onward.

Operating revenue

Operating profit (loss) and operating profit (loss)
to revenue from operations(Billionsof yen)2,000(Billionsof yen)80

64.6

1,696.0
1,500

1,000

697.2

40

56.0

49.3
5.5

5.3

4.1

20

0.6

0

2

3.8

0
-10

-62.1

0

2017

2018

2019

2020

2021

(FY)

2022

2017

2018

2019

2020

2021

(forecast)Interest-bearing debt

1,080.2 1,055.9 1,058.2

1,182.2

270.0
1,280.0

19.2

9.2

600

15

10.3

10.2

8.8

(Billionsof yen)80

Profit (loss) attributableto owners of parent

ROE (right axis)
(%)
20

76.0
20

1,060.0

900

10

300

5

0

0

60
40
20

2018

2019

2020

2022

2021

*Ratio of interest-bearing debt to EBITDA for fiscal 2020 was negative,(forecast)

(FY)

15

12.2
9.6

8.4
29.6

35.9

10

5.4

42.7

5

20.5
0

0

-17.3

-60
2017

(FY)

Profit (loss) attributable to owners of parent and ROE

Ratio of interest-bearing
debt to EBITDA (right axis)

Effect of making KWE a subsidiary (Times)
25

1,500

2022
(forecast)

Ratio of interest-bearing debt to EBITDA

1,200

4

-8.9

-60

(Billionsof yen)6International
logistics
28.2

691.5

500

(%)
8

Operating profit (loss) torevenue from operations (right axis)

67.7

60

International
logistics
825.0

1,222.7 1,236.9 1,194.2

Operating profit (loss)

-20

-60.1
2017

2018

2019

2020

2021

2022
(forecast)(FY)

therefore it is omitted.
*EBITDA for fiscal 2022 (forecast) includes goodwill amortization.

Total assets and ordinary profit to total assets (%)(Billionsof yen)2,000

Total assets

Capital expenditures

Ordinary profit to total assets (%) (right axis)(%)
4

1,914.4 1,936.4 1,891.3 1,955.0 1,895.7
3.5(Billionsof yen)
100

3

80

2

60

500

1

40

0

0

20

1,500

3.2

2.5

1,000

1.6

78.2
68.9
55.2

54.0

46.0
26.5

-2

-2.2
2017

2018

2019

2020

2021

(FY)

Cash flows(Billionsof yen)Cash flows from operating activities

88.7

102.3

38.0

2019

50.0

101.8

30.0

2020

2021

2022

(FY)

50.0

-50

-64.1

-57.4

-71.4

2018

2019

2020

50.0

(FY)

60

50.0

50
40
30

25.0

32.1
26.4

20

11.1

10.0
0.0

2021

(%)

Dividend payout ratio(%) (right axis)

46.2

20.0

-25.4
-46.0

2017

50.0

40.0

57.5
44.2
0.8

-50.7

Annual dividend per share

60.0

38.1

0

-100

2018

(forecast)(JPY)

Cash flows from investing activities

58.2
50

2017

Shareholder return
Free cash flows

150
100

0

2017

2018

2019

2020

10

2021

2022

(forecast)(FY)*Dividends before the reverse stock split (on October 1, 2017) are converted based on thestandard after the reverse stock split.

*Annual dividend per share and dividend payout ratio for fiscal 2020 are not describedbecause no dividend was paid.

19

Kintetsu Group Integrated Report 20220

Non-Financial Highlights
CO2 emissions (companies subject to periodic reporting
pursuant to the Energy Conservation Act*1)(Crude oil equivalent
1,000 kl)
500

(1,000 t-CO2)
1,000

300

400

100

200

2017

2018

2019

2020

2021

Full-time Director

23.5

10

17
4
3
10

0

External Director

33.3

2017

2017

2018

2019

487

479

2020

2021

(%)
40

40,00030

30,00020

20,00010

10,0000033.3
30,59730,50630,491

30,343
26,605

23.1

14

(FY)

Number of employees (consolidated)

28.6

30

20

Part-time Director

External Director ratio (right axis)

0

(FY)

Number of directors and external director ratio(non-consolidated)
40

555

600

200

0

736
646

310

4
3

13
3
3

12

12

4

4

7

7

8

8

2018

2019

2020

2021

(FY)

2017

2018

2019

2020

2021

(FY)

*At the conclusion of general meeting of shareholders of each fiscal year

*Denotes the number of full-time employees and does not include temporary employees.

Number of female employees and female employee ratio(major companies*2)

Number of female managers and female manager ratio(major companies*2)

15,000

Number of female employees(%)

Female employee ratio (right axis)

100

11,763

11,48812,447

11,50080

10,671

10,000

43.1

43.0

44.9

44.0

200

100
40
20

2017

2018

2019

2020

2021

(FY)

0

(%)

Number of female managers

20

Female manager ratio (right axis)

150

60

43.0

5,000

0

Overview ofthe Kintetsu Group

800

326

Kintetsu Group’s
Value Creation

355

123

121

7.6

7.8

129
8.3

136

130

8.8

8.5

15

10

5

50

0

2017

2018

2019

Business Strategies

360

2020

2021

(FY)

Initiatives for Materiality367

0*1	Kintetsu Railway, Kintetsu Bus, Nara Kotsu Bus Lines, Bocho Bus, Kintetsu Taxi, Kintetsu Real Estate, Kintetsu Department Store,
Kintetsu Retailing, Kinsho Store, Kintetsu Miyako Hotels International, Kin-Ei, Osaka Aquarium Kaiyukan*2	Kintetsu Group Holdings, Kintetsu Railway, Kintetsu Real Estate, Kintetsu Department Store, Kintetsu Retailing, Kinsho Store,
Kintetsu Miyako Hotels International, KNT-CT Holdings Group

Kintetsu Group Integrated Report 2022

Corporate Information

400

Messages fromthe Top Management

Energy use (companies subject to periodic reporting
pursuant to the Energy Conservation Act*1)

20

Value Creation Process (Revised February 2023)
The value creation process refers to generating a flow of sustainable value through business activities. The Kintetsu Group aims to achievesustainable growth and contribute to the realization of a prosperous society founded upon co-creation. We do this by addressing social
issues with integrity and promoting business activities that prioritize sustainability. With the international logistics business as one of our
new core businesses, we will take on the challenge of fulfilling the vision of society as a “borderless, connected world” we aspire to create.

External Environment●

Kintetsu Group’s Corporate Philosophy,

A declining population in Japan with fewer
children and aging citizens

Climate change, increase in natural disasters
Acceleration of digitization● Transition to a decentralized regional society● Heightened geopolitical risk
● Growing awareness of sustainability● Changes in lifestyles and diversification●●

Kintetsu Group
Medium-Term
Management Plan
2024
Main Measures

Management Resources●

Developing a wide range of businesses tosupport people’s lives
265 group companies●

A wide-area transportation network andcommercial facilities, mainly in the Kinki
and the Tokai regions
582.2 km of railway lines●

A logistics network extending around theglobe
45 countries, 304 cities, and687 business locations

Intellectual Capital●

Expertise accumulated in a wide range ofbusinesses

Human Capital●Strengthening
cooperation withexternal partners

Reforming ourbusiness portfolio

Transportation
Business

Collaboration andsharing ofmanagement
resources

Creating new
businesses andservices through DX
Implementing
community developmentthat aims to resolve
regional issues

Hotel and
LeisureBusiness

Highly specialized human resources acrossa variety of industries
Number of consolidated employees:
approx. 45,000

Financial Capital●

Stable operating cash flow creation

Social Capital●

Extensive customer base, mainly in ouroperating area●

Relationships of trust with stakeholders

Kintetsu Group Sustainability Policy
The Kintetsu Group aims sustainable growth,and contributes to the realization of prosperous society for
next generation, by creating new value through co-creation
with various people.

Natural Capital●Rich natural and cultural tourism resourcesin areas along Kintetsu lines
2 national parks and
5 World Heritage sites

Kintetsu Group Management Philosophy

Capital enhancement through value circulation
21

Kintetsu Group Integrated Report 2022

Contribution to therealization of aprosperous society
through co-creation

Real EstateBusiness

International
Logistics
Business

Society in whichpeople can workwhere they wantto live
Society in which
Prosperous living
people help one
environments
another
Tourism
A borderless,enrichingpeople’s hearts connected world

Materiality (Priority Issues for Sustainability)■ Creating a lifestyle that anticipates changes in values

Shareholders& investors

Kintetsu
Group

Regional
communities■ Energizing communities by enhancing the network

Value■ Enriching people and communities with travel
creation■ Contributing to the realization of adecarbonized and recycling-oriented society

Employees

Business
partners■ Ensuring safety and pursing peace of mind

Business ■ Bolstering our governance and risk managementfoundations ■Fostering diverse human resources andsupporting their activities

Economic Value

Corporate Information

Customers

Initiatives for Materiality

Business Strategies

Merchandise
Sales
Business

Contributing to
the realization ofa prosperous
society founded
upon co-creation
throughthe strength of
our networks

Messages fromthe Top Management

Societal Value

Overview ofthe Kintetsu Group

Value Creation

Kintetsu Group’s
Value Creation

Strategies, and Businesses

Sustainable Business Growth“To Support Daily Life, To Create More Value.”and sustainable value creation
Kintetsu Group Integrated Report 2022

22

Kintetsu Group Sustainability Policy & Materiality (Priority Issues)
In order to clarify the significance of the Kintetsu Group’s business activities, we formulated the KintetsuGroup Sustainability Policy in November 2021. The policy identifies seven priority issues that we will work
to toward over the long term, and by implementing initiatives, we aim to achieve sustainable growth andcontribute to the realization of a prosperous society through co-creation.

Kintetsu Group Sustainability Policy
Kintetsu
Group
Management
Philosophy

The Kintetsu Group aims sustainable growth,and contributes to the realization of prosperous society for
next generation, by creating new value through co-creation
with various people.

Materiality (Priority Issues for Sustainability)
Kintetsu Group
Sustainability Policy

Creating a lifestyle that anticipates changes in values
Valuecreation

Energizing communities by enhancing the network
Enriching people and communities with travel
Contributing to the realization of a decarbonized
and recycling-oriented society
Ensuring safety and pursing peace of mind

Businessfoundations

Kintetsu Group
Medium-Term Management Plan 2024

Bolstering our governance and risk management
Fostering diverse human resources and supporting
their activities█ Sustainability Promotion Framework
To strengthen the relationship of trust we have built with allof our stakeholders—whether customers, regional communities,
shareholders, business partners, employees, or others—and toresolve societal issues and raise corporate value in the long term,
we have put in place a CSR Committee. The committee is chaired by
Kintetsu Group Holdings’ president, and comprises executive officers
from the company as well as CSR representatives from throughout
the group. The key topics it has recently examined are listed below.
A meeting of the CSR Committee█ Key Topics Before the CSR Committee
July 2, 2021
• Response to harassment case

September 17, 2021
• Kintetsu Group Integrated Report 2021
• Value creation process• Kintetsu Group sustainability policy andmateriality (priority issues)• Review of the Kintetsu Group’s
environmental targets• Health and productivity management
for the Kintetsu Group, etc.

23

Kintetsu Group Integrated Report 2022

March 1, 2022
• Status of compliance with legal

regulations and corporate ethics• Setting KPIs for materiality (priority
issues)• TCFD scenario analysis• Setting health and productivity
management targets• Partnership-building declaration, etc.

September 8, 2022
• Kintetsu Group Integrated Report 2022
• Setting KPIs for materiality (priority

issues)• Environmental initiatives (TCFD

information disclosure, etc.)• Establishment of human rights basic

policy for the Kintetsu Group• Report on the activities of theHarassment Prevention Subcommittee,
etc.

STEP

Rank by priority

Select issues that have particular importance for each business sector,
considering dialogue with major group companies, outside expert opinions,societal viewpoints, and our management philosophy.

STEP

Identify priority issues

Organize the themes identified in STEP 3 and set seven priority issues basedon business characteristics.
Through debate with executive officers concerned and discussions by the
CSR Committee, determine themes and report them to the Board of Directors.

Business foundations

Materiality(Priority Issues for Sustainability)

Direction to aim for

Creating a lifestyle that
anticipates changes in values

As people’s lifestyles and preferences diversify, we will anticipate how
their values will change and provide services that enrich every aspect of
their lives—at home, at work, and at play.

Energizing communities byenhancing the network

Through co-creation, we will enhance our transportation network,
the Kintetsu Group and regional communities, and people-to-people
networks, while contributing to community building and creating avibrant city that contributes to the development and happiness of theregion.

Enriching people andcommunities with travel

Through co-creation, we will discover the wonders of the historicalculture and tourist resources along Kintetsu lines, create the enjoymentof travel, and propose travel that resonates with the heart. In addition, we
will enrich the region by increasing outside visitors and fostering industry
through tourism.

Contributing to the realizationof a decarbonized andrecycling-oriented society

In addition to taking advantage of the high energy efficiency andenvironmental superiority of railroads, we will work to conserve energy
and resources in each of our businesses and contribute to the realizationof a decarbonized and recycling-oriented society.

Ensuring safety and pursing
peace of mind

As a corporate group that supports daily life with a focus on railroads, weplace the highest priority on ensuring safety, which is the foundation of
our business, and providing peace of mind in every aspect of our lives.

Bolstering our governanceand risk management

We will focus on building a highly transparent and fair management
system in each Group company, which will lead to the realizationof synergies and the provision of value. We will also work to ensure
thorough compliance and strengthen risk management throughout thegroup.

Fostering diverse humanresources and supporting
their activities

We will strive to develop human resources who will lead the next
generation by accepting a diverse range of human resources andcreating an environment where employees can maximize their abilities.
We will provide diverse values to everyone through the activities of ouremployees in a wide range of fields.

Kintetsu Group Integrated Report 2022

Overview ofthe Kintetsu Group

Narrow down the selection (to 66), considering relevance to the Kintetsu Group.

Kintetsu Group’s
Value Creation

Narrow down choiceBusiness Strategies

STEP

Initiatives for Materiality

Select a range of societal issues (around 200) from the SDGs, SASB, Global
Risks Report, and other sources.

Corporate Information

Select issues

Value creation

STEP

Messages fromthe Top Management█ Materiality (Priority Issues for sustainability)—Identification Process24

Materiality (Priority
Issues for sustainability)

Related societal issues
Responding to low birthrates,
aging society, and declining
population⨋ Growing awareness ofsustainability⨋ Promoting innovation and technicalprogress

Risks

Opportunities⨋

Creating a lifestylethat anticipateschanges in values

Responding to low birthrates,
aging society, and declining
population⨋ Maintaining and growing theregional economic base⨋ Maintaining and renewing criticalregional infrastructure⨋ Providing a sustainabletransportation system⨋

Energizing
communities byenhancing the
network

Promoting a sustainable tourism
industry⨋ Maintaining and growing theregional economic base
⨋ Protection and preservation ofcultural and natural heritage⨋

Enriching people
and communities
with travel

Decreased demand due topopulation decline⨋ Decline in non-resident population⨋ Decrease in domestic and inboundtourists⨋ Intensifying competition, emergenceof new competitors⨋ Revisions to existing businessmodels prompted by changing anddiversifying lifestyles⨋ Shortage of labor⨋ Political instability, economic
stagnation, and rising prices caused
by geopolitical risks⨋ Slowdown in innovation andtechnological progress⨋

Facility damage and business
shutdowns due to increased
number and severity of natural
disasters⨋ Higher procurement costs forenergy⨋ Tighter policies and regulations⨋ Response to environmental issues,
including supply chains

Expansion of online businessand creation of new customer
contact points through digitalmeans⨋ Business opportunities basedon an increase in active seniors⨋ A return to regional core cities⨋ Revived awareness of thevalue of real-world experiences⨋ Creation of new businessmodels⨋ Development of an efficientbusiness operation framework⨋⨋

Contributing to
the realization of adecarbonized andrecycling-oriented
society

Responding to climate change⨋ Promoting sustainable resource
usage, production, andconsumption⨋ Environmentally friendly businessactivities⨋

Preventing accidents
Responding to climate changerelated disasters⨋ Deter malfunctioning of criticalinfrastructure⨋ Prevention of infectious diseases⨋ Quality and safety of products andservices

Developing businesses withlow environmental impact⨋ Growing preferences forenvironmentally friendly
services⨋⨋⨋

Ensuring safety andpursuing peace ofmind

Large-scale fires or accidents
Outbreak of new infectious
diseases⨋ Harm to reputation for quality andsafety⨋⨋Deterioration of stakeholder trust
Harm to corporate value due toserious legal and ethical violations,
including in the supply chain⨋ Increasing sophistication of
stakeholder demands

Early business recovery byboosting resilience⨋ Growing preference for services
that offer safety and peace of
mind
⨋

⨋

Bolstering ourgovernance and risk
management

Highly transparent management⨋ Business activities in compliancewith laws and ethics⨋⨋

Labor shortages, intensifying
competition for human resources⨋ Adequacy of working environment⨋ Mental and physical health of
employees⨋ Protection of human rights,
including in the supply chain⨋ Diversity and inclusivenessmeasures⨋ Responding to technologicalinnovation, etc.

⨋

Increasing corporate value
through management
personnel diversification⨋

Promoting safe, secure working
environments⨋ Respect human rights⨋ Promoting diversity andinclusiveness⨋ Expansion of education system⨋ Responding to low birthrates,
aging society, and declining
population⨋

Fostering diverse
human resources
and supporting theiractivities

25

Kintetsu Group Integrated Report 2022

Creating new value throughemployee diversification⨋ Improving productivity throughbetter use of technology⨋ Creating new value throughenhanced education andtraining⨋

Example initiatives[Railways]
Number of new general-purpose railcars thatmeet diverse needs[Department stores]⨋ E-commerce sales[Stores]⨋ Proportion of total sales of key health products[Real estate]
Creation of resident and non-resident
populations through redevelopment of areaaround a station[Railways]⨋ Number of railway passengers[Department stores]⨋ Number of urban development-designed
commercial service complexes[Stores]⨋ Number of mobile supermarkets in operation

Overview ofthe Kintetsu Group⨋[Railways]
Number of people using the Ise-Shima Limited
Express⨋ Number of inbound rail passengers[Travel agency]⨋ Number of people utilizing universal tourism⨋ Number of visitors brought in by regional visitor
attraction programs⨋ Number of Peace Program and SDGs Program
initiatives⨋

Improve the attractiveness and dissemination of
local tourism resources in cooperation with local
governments, etc.
⨋ Promote micro-tourism⨋ Introduce new sightseeing limted express trains⨋ Capture inbound demand in post-pandemic era⨋ Tempt Expo/IR visitors to our operational areas⨋

Promotion of energy saving⨋ Promotion of CO2 reduction and use of renewableenergy⨋ Promotion of a modal shift⨋ Reduction of food loss
⨋ Management of the entire supply chain⨋ Logistics services using low-carbon fuels⨋⨋

Messages fromthe Top Management⨋

Kintetsu Group’s
Value Creation

Regional revitalization through co-creation withlocal governments and local businesses⨋ Promote area management for the Abeno/Tennoji
area⨋ Provide a place for exchange and co-creation
among residents⨋ Department stores are becoming regional core
stores and suburban stores are becoming town
centers.
⨋ Promote redevelopment around major stations⨋

Related SDGs

[Kintetsu Group]
Energy consumption⨋ CO2 emissions[Railways]⨋ LED lighting installation rate
[Department stores, Stores and restaurants]⨋ Food waste emissions and disposal rate
[Travel agency]⨋ Number of participants in green tourism andeco-tourism

Business Strategies

Provide products and services that contibute to
new lifestyles⨋ Provide products and services that solve lifestyleissues⨋ Provide products and services that consider healthand the environment⨋ Develop management foundations through the useof digital technology⨋

Key Performance Indicators (KPIs)[Railways]
Number of accidents involving railway operations
for which the company was responsible⨋ Number of accidents involving railway operations
and transportation disruptions[Real estate]⨋ Percentage of condominiums with stockpiles of
emergency items[Hotels]⨋ HACCP implementation

Ensure safety on railways and at facilities
Strengthen disaster countermeasures⨋ Thorough hygiene management⨋ Promotion of barrier-free access⨋⨋

Enhance corporate governanceThorough compliance⨋ Rigorous measures to fight corruption⨋ Strengthen risk management⨋ Maintain and deepen relationships of trust withstakeholders⨋ Promote responsible procurement

Initiatives for Materiality⨋⨋

Improve uptake of childcare leave and prevent
employees from leaving the workforce for childcare
or nursing care
⨋ Promote health and productivity management⨋ Prevent harassment⨋ Increase the ratio of female hires and female
managers⨋ Support employees’ career development⨋ Improve labor productivity through the use oftechnology, work style reforms, etc.

[Kintetsu Group Holdings]
Ratio of external directors[Railways]⨋ BCM rating (Development Bank of Japan)

Corporate Information

⨋

⨋

⨋

[Major companies]
Ratio of female employee hires⨋ Ratio of female managers⨋ Obesity rate
⨋ Percentage of high-stress employees[Railways, Department stores]⨋ Rate of employees taking childcare leave[Department stores]⨋ Childcare/nursing care turnover rate⨋

Comprehensive evaluation indicators[Kintetsu Group Holdings]
Maintaining and improving external ESG evaluation
Kintetsu Group Integrated Report 2022

26

Messages from the External Corporate Officers
My Hopes for Excellent
Operational Area Resourceand Global Business
Development
Masanori Yanagi
External Director

Drawing a Favorable Operational Area
Environment into Business Focus
As an external director, I am involved in the managementof the Kintetsu Group, and my sense is that the railroad lines
are rich in cultural and natural attractions, some of which
are of overwhelming value to the Group’s management, andI want to make the most of these attractions. With respect
to the railway business, Kintetsu has the longest lines of any
private railway and links Kyoto, Nara, Ise, and other areas in aregion of extremely high historical value, which I see as a greatstrength. The corporate group is engaged in a truly diverse
range of fields, from the transportation business—which
includes railway, bus, and taxi companies—to real estate,retail, manufacturing, and international logistics. That diversity
is another key strength. Although the group was hit hard by
the COVID-19 pandemic overall, government approval to raisepassenger fares in the core railway business has allowed
management to set goals to establish sound financials.
Starting there, I believe it is essential for the group to gather
its strengths, return to its roots as a railway company, andpursue two things I will describe below to achieve sustainable
operations going forward.
The first is to tap into the resurgent tourism industry. We
must attract visitors to the operational areas from all overJapan and from overseas as inbound tourists. The competition
will be fierce among tourist destinations in the post-pandemicera, but the areas along the Kintetsu lines include many lesserknown attractions that are both diverse and deeply captivating.
As Japan pursues a national strategy of welcoming tourism,if everyone involved joins together to refine what exists into
first-class tourist resources, we can enjoy an expansion in thenumber of both first-time and repeat visitors.
The second thing is to tap into the region’s latent appeal.
In the Economist’s survey of the world’s most livable cities in
2022, Osaka was the top spot among cities in Asia. According
to The Institute for Urban Strategies at the Mori Memorial
Foundation, in its Japan Power Cities 2022 reports, Osaka

27

Kintetsu Group Integrated Report 2022

was ranked No. 1, followed by Kyoto at No. 2 and Nagoya at
No. 5. The Kintetsu Group needs to utilize the railway terminals
in these attractive cities so that even with Japan’s declining
population, it becomes possible to increase the resident
population by attracting schools and developing housing alongtrain lines, thereby boosting the vitality of its operational areas.
These days, with growing interest in dual-location living, theareas along Kintetsu lines have both urban and leisure appeal
and hold great potential for people to establish a second
residence, such as a weekend home or vacation home.

Hopes for Global Business
The acquisition of Kintetsu World Express as a wholly-owned
subsidiary marks a major turning point in the company’s global
group development. With its solid position in the international
logistics industry, Kintetsu World Express is an extremely
valuable asset and will significantly impact the consolidated
bottom line. The group should be striving to work more actively
in the B-to-B and overseas spheres, and the new subsidiarycan be an important driver of growth in such endeavors.
Also, decarbonization is a major global issue today. The
expansion of solar power generation is one way to achieve this,both as a railway company with low environmental impact andas a corporate group with expanding global interests, which
can bring great advantages to the world while also benefiting
corporate operations.
When I worked for the Japan Development Bank and theDevelopment Bank of Japan, starting with maritime transport,
I was involved in a wide range of business areas, including
airlines, hotels, railways, and real estate. The Kintetsu Groupis involved in most of these, so I aim to use my expertise inindustrial development as best I can in my role as an external
director.
I will be committed to helping the Kintetsu Group develop
its operational areas and do business at the global level.

Messages fromthe Top Management

For the Sound Managementof the Kintetsu Group

Kintetsu Group Management—Bold Yet
Deliberate
The Kintetsu Group is managed in a deliberate way overallthat I feel is both stable and reliable. But management is also
capable of bold, fast decision-making at critical junctures,
exemplified by decisive action to revise the medium-term
management plan during the COVID-19 pandemic, an
extremely critical time. The revision included a new dualaxis approach to the hotel business and structural reforms
in other businesses that led to a quick recovery in businessresults. This bold yet deliberate approach is a great strength

Youth Today and the Human Resources That
Society Needs
Having taught at a university for over 35 years, in recent
years I have noticed an appreciable change in temperament
among young people. Particularly since the 2008 global
financial crisis, students have been feeling more pressure
due to greater difficulty in finding a job, and they are moreanxious about their future; university life is not as carefree as
it once was. One’s college years should be a time for trying
lots of new things regardless of success and is of great value
in trying to figure out what does or doesn’t suit your aptitudes
and temperament. I feel sorry for students who feel forced tofocus on finding a job or acquiring qualifications. Similarly, in
corporate management, rather than merely focusing on profit
in the short term, it is becoming increasingly important tofocus on long-term sustainability and make decisions using amore multifaceted approach.
I understand that university students are in a difficult
position, but I hope that they can expand their interests intheir student years and develop a broader perspective onsociety to be able to contribute to it. And I expect that the
Kintetsu Group, which operates sustainable businesses
supporting society, will continue to base its management on
a rich diversity of human capital.

Kintetsu Group Integrated Report 2022

Kintetsu Group’s
Value Creation
Business Strategies

I have been involved in research and the teaching ofcorporate law at the university level for many years. The duty ofan Audit & Supervisory Board Member, as I see it, is to ensurethat the company’s directors are carrying out their duties ina lawful manner. From the highly independent perspective ofan auditor who is external to management, I try to perform
my duties in a way that helps maintain sound management,
primarily by working on the Audit and Supervisory Board. If ascandal were to occur, even once, it could do immeasurable
harm to the reputation of the organization. So, although
the pursuit of operational efficiency is important, with thestock market’s ever-growing insistence on profits, soundmanagement comes first and that is where an auditor likemyself plays a key role.
I feel fortunate that Kintetsu Group Holdings has sucha well-developed auditing system. The system includes
monthly meetings of the Audit & Supervisory Board which
provide the opportunity to receive all kinds of information,such as information from full-time board members gleaned
from the various meetings they have attended, information
provided by members of the Office of Audit & Supervisory
Board, the section that staffs the Board, and reports from theInternal Audit Department and financial auditors.

of the Kintetsu Group’s management, which seems well intune with its corporate philosophy—To Support Daily Life, To
Create More Value.
I am particularly eager to see how the group reforms its
business portfolio—one of six priority measures listed in
the medium-term management plan. Future risks, such as
new infectious diseases or unexpected catastrophes, areunpredictable. So, I feel it will be important for the corporation
to bolster itself in terms of sustainable growth and risk
tolerance by diversifying through M&A and new businessdevelopment, as seen with the recent acquisition of Kintetsu
World Express as a wholly-owned subsidiary.

Initiatives for Materiality

What Is Expected of an External Auditor

Corporate Information

External Audit & Supervisory Board Member

Overview ofthe Kintetsu Group

Masahiro Maeda

28

Kintetsu Group Medium-Term Management Plan 2024 Progress
The Kintetsu Group Medium-Term Management Plan 2024 was formulated in May 2021. We have made steadyprogress on six main measures for the recovery from the COVID-19 pandemic, the development of new
businesses and the dramatic growth of the Kintetsu Group.

Principal Initiatives of the 2024 Plan’s Main Measures

1

We set fiscal 2021 as a year for taking thorough measures to cut costs and reorganize our business structure to return toprofitability. The year was also needed for focusing on reducing interest-bearing debt by liquidating company assets and restoring
our equity capital.
We have designated fiscal 2022 and forward for accelerating new business development in a post-pandemic world, thereby
strengthening our profitability and leading to new successes.
Main measures

Major initiatives

1

Radically reviewing our cost structure2

Early reduction of interest-bearing debt

3

Strengthening cooperation with external
partners

4

Reforming our business portfolio

5Creating new businesses and services
through DX

6Implementing community developmentthat aims to resolve regional issues

Lowering break-even point by revising business
operation frameworks

Collaborating with Blackstone
for dual-axis management ofhotel business

Expanding business fields throughmergers and acquisitions (M&A)

Developing realestate businessusing special
purpose companies(SPCs), etc.

Developing a digital services platform for the Kintetsu
operational area
A one-stop regional DX platform that can seamlessly provide
a range of services, including MaaS and payment services

Reduction of unprofitabledivisions
Disposing of non-core
assetsPromoting open innovation
using corporate venture
capital (CVC)

Expanding our online
shopping business
Promoting redevelopmentof areas around stations

Progress in the Main Measures

2

Main measures ①

Radically reviewing our cost structure

Pursue cost reductions by implementing business structure reforms to lower the break-even point

Anticipated amount of FY2022 cost
reductions (consolidated) * Compared to pre-pandemic
Futurepolicies

Approx. -¥49 billion * Does not include the reduction of variable costs linked to sales

Lower the break-even point further by using ongoing efforts to improve operational efficiency
In addition to a radical revision of the cost structure, accelerate new business development suited to a post-pandemic
era to bolster profitability● Phase out temporary cost reductions as demand recovers, but implement flexible cost reductions if demand declines
in the event of a resurgence of infections●●

Initiatives by Major Companies
Business area

Main items to be implemented/measures to be taken

Anticipated amountof FY2022 cost
reductions (compared
to pre-pandemic)

Change timetables in response to customer usage patterns
Streamline and digitalize station operations, etc., as part of establishing efficient business operations-¥11.0 billion

Reduce personnel costs by cutting back on hiring and by promoting employee multitasking; consolidate
hotel back-office operations
Reduce capital expenses by switching to contracted management in collaboration with Blackstone-¥6.5 billion●

Shift mode of advertising from print media to apps as part of digitalization strategy
Improve personnel efficiency by promoting multitasking and low-cost operations at regional core storesand suburban stores-¥5.5 billion●

Cut rent and personnel expenses by withdrawing from unprofitable stores-¥1.0 billion

Reduce fixed costs such as personnel and facility expenses by making major cuts in personnel,
consolidating the head office through organizational restructuring, and significantly reducing the numberof outlets and branches
Increase productivity by accelerating a shift to Web-based sales, promoting DX, and reallocating
personnel as appropriate
FY2022 forecast (compared to FY2018): -¥28.4 billion (fixed costs: -¥17.5 billion plus variable costs:-¥10.9 billion)-¥17.5 billion

TargetRailways

Quickly establish managementfoundations that will secure stableprofits even if revenue decreases
post-pandemic

HotelsLower break-even sales by 20%
by reducing fixed costs

Department Continue to reduce SG&A
expenses by 10% or more
storescompared to FY2019
In-station
Withdraw from loss-making
stores and promote rationalization
stores andrestaurants through digitalization

●
●

●

●
●

●

TravelagencyReduce expenses for FY2022
onward by approx. ¥20 billion
compared to FY2018

●

●

29

Kintetsu Group Integrated Report 2022

Main measures ②

Early reduction of interest-bearing debt

Maintain as a top priority policy. Aim to reduce interest-bearing debt, which increased with theacquisition of Kintetsu World Express (KWE), as soon as possible using the cash flow generated by
the company as a source of funds (see below)

Capital expenditures

Invest in business continuity and strategic investments for future growth while focusing on investment
efficiency

Shareholder return

Aim for reliable payment of dividends in light of our equity capital building and business performance
Overview ofthe Kintetsu Group

Reduction of interest-bearing debt

Consolidated interest-bearing debt
(Billion yen)

* EBITDA: operating profit + depreciation + amortization

Ratio of interest-bearing debt to EBITDA

1,200

1,100

19.2 times

1,280.0(1,100.0)of goodwill

Worsening financial position due
to the COVID-19 pandemic
impact

1,055.9(1,002.6)

1,182.2(1,105.2)+¥270.0 billion

Down ¥122.2 billion
after implementing suchmeasures as
disposal/liquidation ofcompany assets

270.0

1,058.2(1,017.4)

1,060.0(980.2)

Increase fromKWE becoming
a wholly-owned
subsidiary

10.2 times
8.8 times

due to negative ratio ofinterest-bearing debt
to EBITDA

10.3 times Interest-bearing
debt balance on
1,010.0
conventional

900

basis

0

Mar. 2019

Main measures ③

Mar. 2020

Mar. 2021

Mar. 2022

Interest-bearing debt held by KWE:+¥110.0 billion
Aiming for early reduction* KWE’s cash equivalent of approx. ¥130 billion also
consolidated at the same time

* Fiscal 2020 omitted
1,000

Financing of acquisition of KWE shares:+¥160.0 billion

Mar. 2023(forecast)

Change from end of previous period:-¥50.0 billion (forecast)
Recovery of demand in multiple business segments is
expected to meet medium-term plan targets,
excluding the impact of KWE becoming a wholly
wholly-owned subsidiary.
(Target: less than ¥1 trillion at the end of FY2024)

Strengthening cooperation with external partners

Collaboration with Blackstone

Corporate Information

In 2021, eight hotels were sold to a special purpose
company in which Blackstone and we invested, we are now
pursuing hotel management on dual axis—Kintetsu-ownedand-operated hotels and contracted-operation hotels. We
are looking to improve the value of the latter’s assets andtheir business performance by taking full advantage of thecollaboration with Blackstone, with its rich experience in hotelmanagement overseas.
Miyako Hotel Kyoto Hachijo and Hotel Kintetsu Universal
City will be renovated by the company. AI-based revenue
management services will be introduced for these two hotels
and Miyako Hotel Hakata—a feature that has a proven trackrecord in Blackstone’s overseas hotels.

Kintetsu Group’s
Value Creation

1,300

Business Strategies

Upper row: Interest-bearing debt
Lower row: (Net interest-bearing debt)

Initiatives for Materiality

1,400

Messages fromthe Top Management

Our Financial Policy for the Future

Miyako Hotel Kyoto Hachijo

Kintetsu Group Integrated Report 2022

30

Main measures ④

Reforming our business portfolio

We are aiming to strengthen the risk tolerance of our business portfolio through M&A and other initiatives. We are also
incorporating international logistics as a core business and expanding the scope of our business activities (global, B-to-B, not reliant
on the physical movement of people) to transform our business portfolio.

New Business Portfolio(projected)

International
logistics

B-to-Bbusiness(Air freight)(Sea freight)(Logistics)

GlobalBold, active businessdevelopment at
Kintetsu World Express

Real estate
Hotel and Leisure(Sales, Leasing,Management)(Hotels, Travel agency) Merchandise sales

Transportation(Department stores,(Railways, Bus services, Stores and restaurants)
Taxi services)

B-to-Cbusiness

Creation of
new business value

Domestic/Community-Based* April 1, 2021: SAKAE CO., LTD., a metal products
manufacturer and seller, joined the group.

Existing Kintetsu Group businesses founded uponsafety and peace of mind

Businesses dependenton people’s movement

Businesses not dependenton people’s movement

Kintetsu World Express Becomes a Wholly-Owned Subsidiary● Objective of Acquiring Ownership

To increase the value of both KWE and the Kintetsu Group by further deepening their collaboration

Improved Value for Kintetsu World Express

Improved Value for the Kintetsu Group
1 Broadens growth drivers

1 Allows growth by switching to managementthat is not constrained by capital markets

Corporate value improves by having another corebusiness in addition to railways and real estate.

Without the constraints of capital markets, thecompany’s focus can shift from short-term returns tolong-term growth, which will serve to speed theimplementation of strategies, tactics, and the like.

2 Diversifies and stabilizes business risk
Business portfolio shifts from being B-to-C anddomestic-centric to including B-to-B and global
business.

3 Enables shift to new group governance

2 Sharing of the Kintetsu Group management
resources based on a long-term approach

Enables transition to group management that embraces
different types of businesses, thereby boosting thegroup’s competitiveness and business momentum.

Being able to utilize the tangible and intangible
management resources of the Kintetsu Group, suchas fund-raising capabilities and knowledge andexpertise in M&A and other capitalization strategies
increases the likelihood of value rising in different
areas.

4 Promotes human resource development
and corporate culture reform
The corporate culture of the entire group is transformed
through personnel exchanges with KWE, which has a global
culture and values.

31● Financial Impact (approximate values)● Change in operating revenue by segment❶ Increase in interest-bearing debt: approx. 270 billion yen● Acquisition funds for making KWE a wholly-owned subsidiary:
approx. 160 billion yen● Interest-bearing debt of KWE to be consolidated:
approx. 110 billion yen❷ Increase in cash and deposits: approx. 130 billion yen❸ Gain on step acquisition:
47.5 billion yen (recorded as extraordinary income)❹ Impact on our consolidated financial results in FY2022
Increase in consolidated ordinary profit of approx.
15 billion yen(After taking into account amortization of goodwill, etc., interest
expenses, decrease in equity in earnings of affiliates, etc.)

Forecasts for FY2022

Kintetsu Group Integrated Report 2022

Other
Hotel and
LeisureHotel and
LeisureOther

TransportationRealestateTransportation
Merchandise
sales

Consolidated
operating revenue¥867.0 billionRealestateConsolidated
operating revenue¥1,696.0 billion

International
logistics included ascore business

International
logistics*

Merchandise sales

May disclosure

November disclosure* International logistics reflected in consolidated
figures as of the second quarter

Developing a Digital Services Platform for Kintetsu Line Areas
The Digital Services Platform for Kintetsu Line Areas aims to provide customers with improved conveniences while establishing
many points of contact with consumers, new payment methods, and infrastructure for data analysis. In addition to consolidating
data within the group, the sharing of user IDs across the group from the apps of individual companies will facilitate smooth use ofgroup services and contribute to increased revenues.

Kintetsu Department
Store app

MaaS

Main measures ⑥

3

Purchase
information

Location
information

Linking and enabling of intra-groupproducts and services through the
integrated use of customer information

Data Marketing
One-to-one marketing● Dynamic pricing●

Improved Profitability of
the Group as a Whole

Data linkage

The Prospect of New Businesses and Services

New payment method

●
●

App
integration

P

Sale of statistical data to third parties
Location-based digital advertising
services

Creating New Value by
Leveraging Group Strengths

Implementing community development that aims toresolve regional issues▶ See pages 51 and 52

Update to Medium-Term Management Plan Target Indicators, etc.

We will update the target indicators of the medium-term management plan and aim to release the plan around the spring of
2023. The update will reflect post-pandemic recovery strategies in each group business, railway fare revisions, the impact of KWE’s
acquisition on the consolidated financials, and our business direction for the future.
Update to Target Indicators, etc.
Revision of

2 railway passenger fares

3

Kintetsu Group Medium-Term Management Plan 2024

KWE Management Plan 2027

(announced May 2021)

Target (long-term vision)

Basic Policy

Management reform for the recovery from the COVID-19 pandemic,
the development of new businesses and the dramatic growth of the Kintetsu Group

Global Top 10 Solution Partner
A Global Brand Born in Japan

Targets and management indicators

Consolidated indicators

FY2018 results FY2021 results

FY2024 targets

Operating profit (loss)¥67.7 billion¥3.8 billion¥65.0 billion or moreInterest-bearing debt

¥1.0559 trillion¥1.06 trillion

Less than ¥1 trillion

8.8 times

19.2 times

8–9 times

Ratio of interest-bearing
debt to EBITDA (times)
Equity ratio

Making KWE a wholly-owned
subsidiary

Corporate Information

Post-pandemic recovery

1 strategies for group businesses

19.7%

20.0%

Kintetsu Group’s
Value Creation

Customers

ID and data
integration

Memberinformation●

Business Strategies

Kinsho Store app

New customer contact points linking services

Miyako Plus app

Cross-selling within the Group

Data analysis infrastructure

Overview ofthe Kintetsu Group

Examples of Use

Digital Services Platform for Kintetsu Line Areas

Kintetsu app

Messages fromthe Top Management

Creating new businesses and services through DX

Initiatives for Materiality

Main measures ⑤

23% or more

* EBITDA = operating profit + depreciation

Targets and management indicators

Consolidated
indicators

FY2018 results FY2021 results

FY2027 targets

Operating revenue¥592.0 billion¥980.4 billion¥1 trillion

Operating profit¥20.7 billion¥62.4 billion¥50.0 billion

Air freight

600,000 mt

740,000 mt

Over 1 million mt

Sea freight

700,000 TEUs

710,000 TEUs

Over 1 million TEUs

Reflects impact of fare revision in railway business
Kintetsu Group Integrated Report 2022

32

Kintetsu Railway Co., Ltd.
We faithfully support our customers’ daily lives, particularly through our railway business, andwe provide peace of mind and better ways of living.

Business Overview

Management Resources

We possess a total of 501.1 kilometers of track, connecting
major cities and tourist destinations across the Kinki and Tokai
regions’ five prefectures (Osaka, Kyoto, Nara, Mie, and Aichi).
Through our operations, we support our customers’ daily lives
and tourism activities; prior to the COVID-19 pandemic, anaverage of 580 million passengers used our lines each year.
As part of our leisure business, we also run sites suchas Shima Spain Village and Ikoma Sanjo Amusement Park,
bringing excitement and joy to thousands of customers livingin the areas along our railway lines and elsewhere.

Business Environment
Population declines in the Kintetsu operational area, fueled
by low birthrates and the aging society, as well as competition
with motorization due to the expanding expressway network,
are having a major impact.
As well as these long-standing issues, it is predicted that thedrop in demand for transportation brought about by lifestylechanges resulting from the COVID-19 pandemic, particularly
for commuting and business trips, is set to become permanent.
On the other hand, as pandemic-related restrictions have

■ A n operational area that boasts diversity and varied appeal(Osaka, Nagoya, Kyoto, and other urban centers; tourist
destinations such as five UNESCO World Heritage sites andtwo national parks)■ A n extensive limited express network■ High levels of trust due to many years of providing safe,
comfortable transportation services■ Highly specialist personnel and expertise in supporting trip
and interaction in the area

come to an end and things are returning to normal, demand
for tourist-related travel and going out is forecast to expand.
As a company with significant tourism resources in its
operational area, this presents us with a massive opportunity.
To take advantage of this chance, we will work on measures
to stimulate demand for tourism and going out, including by
publicizing the appeal of tourism in the operational area andby running sightseeing limited express trains. We are also
making efforts to achieve carbon neutrality, a global trend.
Rising awareness of sustainability is an excellent opportunity
to gain recognition for the value presented by railways, which
are energy efficient and highly efficient means of transport. I
would like to see us grasp that chance.
Business area along Kintetsu lines
Kiyomizu-dera
World Heritage
TempleShin-Osaka

Ikoma Sanjo
Amusement Park

OsakaNamba
Tennoji

OsakaAbenobashi

Osaka-Uehommachi
Tsuruhashi

Cosmosquare

Representative Director andPresident

Shinkansen

Osaka
Umeda
Kobe-Sannomiya

Takashi Tsuji

Kyoto

YamatoSaidaiji

Ikoma
Horyu-ji Temple

Yunoyamaonsen

Todai-ji
TempleKintetsuNara

World Heritage

World Heritage

YamatoYagi
Kashiharajingu-mae
Asuka

Kintetsu-Nagoya

KintetsuYokkaichi

Nara Park

Nabari
IseshiToba Aquarium

Toba

ABENO
HARUKAS

Mozu-Furuichi
Kofun Group

Yoshino-Kumano
National Park

YoshinoWorld Heritage

Ise Jingu

Kashikojima

Shima Spain
Village

Ise-Shima
National Park
Zaodo at Kimpusen-ji Temple World Heritage

33

Kintetsu Group Integrated Report 2022

Main Capital Expenditure (FY2023–2025)
Continuing improvement measures

New measures

Equipment andinfrastructure
maintenance¥24 billion

Accelerationof accessibility
improvements¥6 billion

Updates for existing
general rolling stock, in-car
security measures¥18 billion

Safety & disaster
preparedness
measures¥12 billion

Greater efficiency
via DX and remote
operations¥4 billion

Introduction of nextgeneration sales devices¥6 billion

Station beautification &renovation of existingrolling stock¥11 billion

Regional
revitalization, etc.

¥2 billion

Forward-looking
technology development¥3 billion

Kintetsu Group Integrated Report 2022

Messages fromthe Top Management
Overview ofthe Kintetsu GroupThe business environment we find ourselves in is anextremely challenging one, and we have made unceasing
managerial efforts—including implementing a variety ofmeasures designed to stimulate demand, and reducing
costs by raising the efficiency of our operational framework.
However, under current circumstances, this will not beenough to maintain our safe, comfortable transportation
services.
As such, to continue sound business operations, in
September 2022 we received approval from the Minister ofLand, Infrastructure and Transport to begin implementing
passenger fare revisions, which we will do in April 2023. The
average price increase will be 17.0%, and in the three years
from fiscal 2023 to 2025, we predict total increased revenueof around 47 billion yen. Utilizing that increased revenue, weplan to make capital investments of approximately 86 billion
yen over three years. As continuing strengthening measures,
we will keep making strides in maintaining the soundnessof our equipment and infrastructure, measures toward
safety and disaster preparedness, beautification of stations,renovation of existing rolling stock, and our accelerationof efforts to improve accessibility. To this, we will add newmeasures: we will promote updates to general rolling stock,measures to improve in-car security, the introduction of
next-generation sales devices, and more besides.
The role of the railway operator is not limited to transporting
passengers to their destinations safely and comfortably. Our
duty is also to create interaction between people, contributeto community development where stations are at the heartof the hustle and bustle, and add to the development andhappiness of the region through our business operations.
As an expression of that desire, we have formulated our
future ideal as the creation of an operational area full of
wonders, as a company loved and chosen by its customers.
To achieve this, we need to provide our customers with
continually better services that resonate with them. We mustalso run our business in a way that is sound and sustainable.
To that end, we will make the most of our management
resources, first and foremost the many and varied charmsof our operational area, and develop the area along Kintetsu
lines as one full of dreams in cooperation with a shining
region.
Through repeated efforts like these, we will provide all
those who bring us their custom with safe, comfortable
services, and will fulfill our mission as a public transportation
provider going forward.

Kintetsu Group’s
Value Creation

Future Direction

Business Strategies

Providing safe, comfortable services, while working with the bright areas along ourrailway lines.

Initiatives for Materiality

Future Ideal

Corporate Information

We create an operational area full of wonders, as a company
loved and chosen by people.

34

Measures/Initiatives toward the Future
Increased revenue
via regional
revitalization

Development andexpansion of new
businesses

Introduction of
new technologies

Growth strategies＜Future Ideal＞
We create an operational area full of wonders, as a company loved and chosen by people.
Providing safe, comfortable services, while working with the bright areas along our railway lines

Providing safe,
comfortable
services

Human
resources
utilization andtraining

Sustainable infrastructure
premised on safety and peace of mind

Rationalizedbusiness
operations

Implementing
ESG-focusedmanagement

Sustainable infrastructure premised on safety and security
While disasters are becoming more severe and railway facilities are deteriorating, the demands and expectations of society
toward railway services such as accessibility and security are growing.
In such circumstances, in order to continue providing safe, comfortable transportation services, we will continue to makeinvestments toward accessible facilities, safety and disaster preparedness measures, and other areas.

Accessibility (installing elevators)

Earthquake-proofing work

Introduction of new general rolling stock
From fiscal 2024 onward, we plan to introduce
new general rolling stock.
These new railcars are designed to be beneficial
for both customers and the environment, and weplan to make them more comfortable by promoting
in-car security measures, energy-savings, andaccessibility.

35

Kintetsu Group Integrated Report 2022

Embankment strengthening

Introduction of digital ticket services

On April 29, 2022, we started operations of AONIYOSHI, asightseeing limited express that runs between Osaka-Namba
Station, Kintetsu-Nara Station, and Kyoto Station.
As well as catering to the needs of users, such as thosefor whom riding a train is a journey in itself or for in-boundtourists, the train offers a new kind of travel featuring directjourneys between the three cities of Osaka, Nara, and Kyoto.

In March 2022, we introduced a digital ticket service thatutilizes QR codes, which allows users to enjoy seamless travel,from purchase to use, via their smartphones.
Going forward, we will increase the number of stations wherethese can be used, and the variety of digital tickets available,
and will endeavor to make travel even more comfortable andeven smoother.

Kintetsu Group’s
Value Creation

Overview ofthe Kintetsu GroupOperation of sightseeing limited express, AONIYOSHI

Messages fromthe Top Management

Growth strategies

SDGs topics

BeforeChartered truck

Withinthe cityof
Osaka

Withinthe cityof
NagoyaAfter
Withinthe cityof
NagoyaWithinthe cityofOsaka① Goods collected in the morning② Loaded at OsakaNamba Station⑤ Delivery in the evening④ Unloaded at Kintetsu-Nagoya Station

Osaka-Namba Station

Joint passenger-freighttransportation using
the Urban Liner

Kintetsu-Nagoya Station③ Joint passenger-freight transportation on a Meihan limited express

Initiatives for Materiality

We are working on joint-passenger transportation so as
to make effective use of empty space on our limited express
trains. Through this business, we can deliver goods on thesame day they are sent, which is more convenient for the user
and also the modal shift involved aids with driver shortages
and efforts to reduce CO2 emissions. This initiative has
been highly praised and in September 2022 we received
an official commendation from the Kinki District Transport
Bureau for excellence in environmental conservation in thetransportation industry.

*① to ⑤ for the example of Osaka to Nagoya

Revitalizing Kintetsu’s operational area withlocal communities
Renewal of Harinakano Station

Operation of cycling trains

We have signed a collaborative agreement with the local
authorities in Higashisumiyoshi Ward, an area in the city ofOsaka, and we are deepening our cooperation with the ward.
As the nearby Nagai Park and Nagai Botanical Gardens areundergoing renewals, we have added
a tagline to our Japanese station namesigns at Harinakano Station. Moreover,in collaboration with Yanmar Holdings
Co., Ltd., we have renovated the station’s
platforms, concourse, and toilets. We arealso working to add digital signage andspaces to promote regional revitalization.

In hand with local authorities and tourist associations
along our lines, we are now running cycling trains—trains
on which passengers can bring their bicycles without
an additional fee or need to book in advance—between
Matsusaka Station and Kashikojima Station, and on the
Tawaramoto Line. By offering a new way of going for daysout that fuses train and bike, we endeavor to revitalize
these regions and spread the word of their appeal.

Kintetsu Group Integrated Report 2022

Corporate Information

Joint passenger-freight transportation
using limited express trains

Business Strategies

Encouraging energy-savings and CO2 reductions

36

Kintetsu Real Estate Co., Ltd.
Our business covers everything from managing office buildings or commercial facilities to supporting
where people live. This allows us to make lifestyle proposals that fit in to changing ways of living.

Business Overview

Management Resources

As a comprehensive real estate developer, we have
expanded in a wide range of fields centered on the areas
along Kintetsu lines, including residential area development,
condominiums, real estate brokerage, renovation, officebuilding leasing, the running of commercial facilities suchas ABENO HARUKAS, agricultural business, solar powerbusiness, and golf course business. The company also
promotes effective use of all of the properties owned by the
Kintetsu Group.

Business Environment
In the real estate industry, the COVID-19 pandemic haschanged people’s lifestyles and this has led to greater interestin living environments. As such, in the residential businessthe number of transactions involving both new and existing
properties is increasing, as is demand for renovations. For ourcompany, too, we are responding to changes in customer needs
after the pandemic, promoting an urban-center condominium■ A history spanning more than 50 years and a track recordof supplying more than 130,000 condominiums and homes■ Possession and operation of facilities that act as regionalbases (ABENO HARUKAS, Ten-Shiba, etc.)■ Network of 27 Plat-HOME (platform) for Housing and Living

integrated sales bases along Kintetsu lines■ E xpertise about the effective use of land depending on thelocation (agriculture, solar power, business under elevatedtrain tracks, etc.)■ Human resources with diverse qualifications and skills

sales business, and contributing to regional revitalization in theareas along Kintetsu lines.
In the office leasing market, the spread of remote working
has led to trends in higher proportions of empty rooms anddrops in asking rents. We have seen some evidence of this in
our own business. However, we have started a new businessthat makes deals in real estate liquidity, and by accumulating
knowhow in real estate securitization and applying this to futurebusiness development, we will strengthen our revenue base.

Future Direction

Takahisa Kurahashi
Representative Director andPresident

37

Kintetsu Group Integrated Report 2022

The COVID-19 pandemic caused very rapid changes to thestructure of society. Coupled with IT technological advances, newbusiness fields are coming into being in the ways people work,
live, and spend their leisure time. We are seizing this business
opportunity, and proposing new lifestyles adapted to various sensesof values, while also raising the appeal of our operational area.
Through verification tests of Ise-Shima workations and otherefforts, we have started initiatives aimed at responding to new ways
of working. We will also move forward with our redevelopments
focused on making the areas around major stations on our lines
as compact cities. With regard to the growing number of vacantplots and houses, through business activities such as buying andreselling, we are strengthening our ability to act as real estate
brokers. Meanwhile, we are pressing forward smoothly with ourrenovation business, and will promote community developmentin our operational area, particularly centered on our Plat-HOME(platform) for Housing and Living integrated sales bases.

New working styles③ Proposals for new lifestyles for both work and leisure●● romoting the workation business in the Ise-Shima region
PHighlighting new ways of enjoying golf courses, where those on
their own can also enjoy the outdoors④ Creation of new, experiential facilities hifting Kintetsu Hamajima Country Club, which we currently run, toS
a complex that makes use of the spectacular natural surroundings(scheduled to open in 2024) to offer visitors outdoor experiences, andcontributing to the prosperity and revitalization of the Ise-Shima area● 
Beginning the K ∙ DogSpa business, a new self-service facility
for dog lovers●

New fields① Proposals for new
ways of living andworking③ Proposals for new
lifestyles for both workand leisure② Redevelopment ofareas around bases④ Creation of new,experiential facilities

New ways of living

New ways of spending
leisure time

① Proposals for new ways of living and working

 xpanding Plat-HOME (platform) for Housing and Living, sales
Ebases that integrate real estate brokerage, renovations, and our
detached home business (27 stores along our lines)● 
Developing homes with integrated garages (K ∙ BLOC) to makeeffective use of land underneath elevated train tracks or unusedland●② Redevelopment of areas around bases●

 oncentrating capital investments in our bases in our operationalCarea, incorporating concepts such as “smart cities,” “compact
cities,” and “eco-cities,” to raise the population of residents andvisitors

Strengthening the housing business y linking the three businesses of real estate brokerage,Brenovations and detached homes, we will form a cyclical modelthat incorporates stages from gathering real estate information
to purchases, rebuilding work, and sales; at the same time asenacting measures for empty homes and land, this contributes
to regional revitalization● 
Unifying in-house information gathering about customer
needs and other topics, putting in place DMP (an information
management platform), and—by utilizing that information—
providing customers with attentive and timely services●

Challenging ourselves to take on new businessfields● reating a new Kintetsu operational area as a virtual space—asCpart of a metaverse-based business, and based on resources
the Kintetsu Group has gained in real life—to bring about
synergies between real and virtual, and develop new market
value for the area

SDGs topics

Messages fromthe Top Management
Overview ofthe Kintetsu Group

Expanding the business to cater to new lifestyles
and adapting to this new age, without limiting
ourselves to the conventional real estate framework

Kintetsu Group’s
Value Creation

Measures/Initiatives toward the Future

Business Strategies

We will propose diverse ways of living and create platforms that form the basis for
new ways of living, working, and enjoying leisure time.

Initiatives for Materiality

Future Ideal

Corporate Information

Our role will continue to be as a platform that can offer better
home and daily lives by supporting prosperous lifestyles for all.

Promoting the development of Kintetsu operational area bases
Using the Kintetsu Group’s combined strength, we will promote theredevelopment of the operational area based on its characteristics, scale, andissues. In particular, we aim to pursue sustainable community development
adapted to each project’s individual traits, which might involve concepts suchas “smart cities,” “compact cities,” or “eco-cities.” In the spring of 2023, we plan
to open a new facility—based on a concept of a commercial facility that brings
together people, town, and greenery—to the south of Yamato-Saidaiji Station.
We also hope to recall the type of connections people have slowly lost with themove to nuclear families and the effects of the COVID-19 pandemic, to provide
richer lifestyles where people support one another.

Kintetsu Group Integrated Report 2022

38

Kintetsu World Express, Inc.
Contribute to the development of a global community through logistics services by creating newvalues, sustaining the environment and collaborating with our clients, shareholders and employees

Business Overview

Management Resources

We provide comprehensive international forwarding
solutions to customers around the globe. Air freight has
been our core business from the beginning, and we now
rank among the top ten in the world in volume. We also
handle a wide range of sea freight in partnership with major
ocean carriers. Our contract logistics services include
inventory management and value-added services as well astransportation to and from warehouses worldwide. And wework closely with KWE Group company, APL Logistics Ltd(APLL), to offer customized, flexible solutions for all kinds ofsupply-chain challenges.

Business Environment
The recovery of the global economy with the slowdown of
the COVID-19 pandemic in fiscal 2021 and new technologicalinnovations have driven significant growth in internationaltransportation demand. At the same time, shipping andsales costs have continued to rise with the short supply of■ A diverse staff of 18,277 employees in 45 countries■ Over

50 years of experience in providing high-quality
logistics services that prioritize the customer’s needs■ A global network in 687 locations, 304 cities, and 45
countries■ Service quality certified to international management andsecurity standards■ Highly competitive, continuing growth in freight volume,
now at 740,000 metric tons air freight and 710,000 TEUs sea
freight annuallycapacity, and our company recorded our highest profits ever
two years in a row. However, we continue to face an uncertain
business outlook with ongoing supply chain disruptions due
to supply constraints, the Russia-Ukraine conflict creating
new geopolitical risks, the soaring rise of prices for criticalresources, and global economic inflation.

Future Direction

Nobutoshi Torii
President and Chief
Executive Officer

39

Kintetsu Group Integrated Report 2022

We are now a wholly-owned subsidiary of Kintetsu Group
Holdings.
Being prepared to respond flexibly to the long-term
fundamental changes that global supply chains are now
undergoing is key to handling crises that may arise in the
future.
We are collaborating closely with the Kintetsu Group,
sharing and leveraging business resources to meet diverse
logistics needs in this rapidly changing business environment
as we move forward toward our long-term vision of becoming
a Global Top 10 Solution Partner — a Global Brand Born inJapan.

Messages fromthe Top Management— A Global Brand Born in Japan

Action on sustainability material topics

Promote communication about anti-corruption policy andprocedures⨋ Identify risks of misconduct in the workplace, identify confirmed
cases of misconduct, and implement appropriate measures

Initiatives in FY2022 and proposed future measures
Conducting group-wide compliance training to increase employee
understanding of compliance⨋ Implementing the KWE Group integrated whistleblowing system⨋

2 Data Security
Targets⨋⨋

Strengthen IT security/architecture
Raise IT security awarenessInitiatives in FY2022 and proposed future measures
Continuing cyber-security measures
Continuing employee training⨋ Planning and implementing periodic security assessments⨋ Continuing risk reduction for data center, server, network, andother risks⨋⨋

3 Diversity and Equal Opportunity
Targets
Promote appointment of women to management positions⨋ Promote recruitment from minority groups⨋ Promote employee education on human rights and equal
opportunity

5 Energy
Targets⨋⨋

Initiatives in FY2022 and proposed future measures
Switching Japan HQ office electricity use to 100% renewableenergy sources⨋ Performing scenario analysis based on TCFD recommendations⨋ Releasing the KWE CO 2 Calculator estimating emissions associatedwith freight transport⨋ Increasing participation in SAF programs⨋ Continuing to shift from engine
fuel-powered forklifts to electric ones
⨋ Continuing to promote rail transport⨋ Continuing to reduce paper use⨋ Updating air conditioning equipment at
Container transported as is by
No. 4 Baraki Terminaltruck⨋ Shifting to LED lighting inside Yokkaichi
Terminal, No. 4 Baraki Terminal, No. 2 Baraki Terminal, and Narita
Terminal⨋ Updating to high efficiency elevators at No. 2 Baraki Terminal andOsaka Nanko Terminal⨋

6 Social Impacts in the Supply Chain
Targets⨋

Initiatives in FY2022 and proposed future measures
Setting diversity and inclusion policy and regulations⨋ Continuing to promote advancement of women to management⨋ Continuing to promote hiring from minority groups⨋ Continuing to promote human rights and equal opportunity training⨋

Reduce CO2 emissions
Promote clean energy use⨋

Fulfill ethical, social, and environmental responsibilities in the supply
chain

Business Strategies

Targets⨋

4 Emissions

Initiatives for Materiality

1 Anti-Corruption

Kintetsu Group’s
Value Creation

We have identified the six materialities of the KWE Group, which are topics that are of high importance to both stakeholders andsociety, the economy, and the environment, using objective indicators. Currently, KWE is working to set and implement measuresand targets for each materiality.

Overview ofthe Kintetsu Group

Global Top 10 Solution Partner

Corporate Information

Long-Term Vision

Initiatives in FY2022 and proposed future measures
Continuing to inform vendors of the KWE Vendor Code of Conduct
Creating guidelines for safety and health, labor, vendor
management, and environmental compliance⨋ Monitoring and surveying vendors⨋⨋

Kintetsu Group Integrated Report 2022

40

Kintetsu Department Store Co., Ltd.
We will create and offer new value in response to drastic changes
in our customers’ lives.

Business Overview

Management Resources

Centered on the Kinki and Chubu regions, we currently
manage ten department stores: Flagship store ABENO HARUKAS,
Uehommachi, Higashi-osaka, Nara, Kashihara, Ikoma, Wakayama,
Kusatsu, Yokkaichi, and Nagoya; together with three commercial
facilities: Abeno and, Hoop, and Uehommachi YUFURA. While
expanding the number of stores we run in the food, home, andservice industries—predominantly through franchising, as seenin our Hands, FamilyMart, and SEIJO ISHII stores; we are also
working to create new businesses, one example being online
stores aimed at both domestic and foreign customers.

brand value■ Regional network covering the Abeno/Tennoji area, Nara,

Wakayama, Mie prefectures, and others.
■ 1.9 million registered customers (KIPS cardholders, Kintetsu

Tomonokai members, out-of-store customers, etc.)■ 2,225 group employees (as of February 2022)■ 13 directly managed or operated commercial facilities

Business Environment

Future Direction

The global situation is becoming increasingly uncertain
due to factors such as the conflict in Ukraine and tensions
between the U.S. and China. In addition, consumer awarenessand values have undergone significant changes due to the
COVID-19 pandemic. People’s needs to improve their lifestyles,
not just in terms of clothing, food, and homes, are changing
to more ethical consumer behavior. At the same time, wehave seen customers move away from the homogeneity of
conventional department stores, particularly with regard to
fashion and apparel. If we keep treading the same old path,
we will lose the value we offer society, and we feel this senseof crisis.

I would like department stores to be places that can discovervalue that meets their customers’ preferences and get them
excited about shopping. We should go back to the drawing board
to discover the department store raison d’être, and take on thechallenge of creating new customer bases and new value.
Therefore, we have greatly reviewed our merchandising strategy
and have been working on “Scrambled Merchandising,” which
combines fashion (our specialty) with food and home-related goods,
in order to expand our reach to new customer demographics. On
the other hand, each store has been promoting “community cocreation” activities to discover and showcase the appeal of thelocal area. In the future, having run trials with Dosanko Plaza, which
is officially recognized by the Hokkaido government, we want tocollaborate with various regions across the country, and throughefforts such as running shops that specialize in a particular region’s
goods, we will discover local specialties and publicize those toboost development. We also aim to make promoting the value ofregions along our railway routes and throughout the country a coreelement of our “Scrambled Merchandising” strategy.
Going further, as part of our efforts to promote ESG management,
we are also taking on the challenge of agricultural business. We
will produce high value-added agricultural products by utilizing
digital transformation (DX) and work with local producers to build a
network from production to sales, promoting regional revitalization
by establishing “urban road stations.” Moreover, we will link with
the Kintetsu Group’s many different products, experiences,and services, with our out-of-store staff acting as concierges topropose the value of those offerings and enhance the richness of
our customers’ lives.

Takuji Akita
Representative Director
and President

41■ E xpertise in sales and attracting customers, as well as Kintetsu

Kintetsu Group Integrated Report 2022

Measures/Initiatives toward the Future

The main store will be a center of discovery andsurprise that draws in customers from a very wide area.
 trengthening our special selection (luxury) zoneS
Increasing value by placing importance on seasons for food andconfectionary sales locations● 
Using “Scrambled Merchandising” on central floors●●

In fiscal 2022, we undertook some remodeling on our fashion
floors. With “Scrambled Merchandising,” we have added food,lifestyle-related miscellanea, as well as cafes and workshops thatbring people in. In the future, we will continue to evolve the store
and tie this into to drawing more customers to the central floors.

Developing “town centers” around stores in key
regional cities or suburbs
 ccurately grasping the region’s and customers’ needs and, withA
a focus on seasonal foods, adding “Scrambled Merchandising”
on central floors and features such as specialist stores andlocal government and community functions on upper floors. By
doing so, we are developing “town centers,” with the goal ofcarving out an indispensable role in each region.
● At our Nara store, in the fiscal year 2022, we will expand andrenew the “Yamatoji Shop” and “Nara-ni-yoshi” zone to promote
the attractiveness of Nara. On the fashion floors, we will implement“Scrambled Merchandising” by introducing “Dosanko Plaza,” themiscellaneous lifestyle goods retailer “Humpty Dumpty,” the fruits
café “Fruit FullCafé,” and “Kaldi
Coffee Farm.”●Nara-ni-yoshi

Dosanko Plaza

Kintetsu Group’s
Value Creation

We will reform and develop the main store
ABENO HARUKAS as an urban department store
with a focus on value, and rebuild cooperative
relationships with nearby commercial facilities.

Messages fromthe Top Management

We will develop ourselves as a lifestyle platform that helps bring about a moresustainable society; by providing consumers with comprehensive services, we will
create richer, in other words more worthwhile, ways of living.

Business Strategies

Future Ideal

Overview ofthe Kintetsu Group

A platformer that enriches life

From regional co-creation to rural revitalizationIn addition to researching digital transformation (DX) in primaryindustries such as agriculture, we are promoting collaboration with
regional and rural governments and producers to establish new
businesses that will contribute to regional co-creation and rural
revitalization● 
Taking on the challenge of agricultural and aquaculture businesses● 
Developing Haruchika Marché, which sells and sends fresh
vegetables to urban areas● 
Developing Dosanko Plaza, a line of shops that specialize in aparticular region’s goods● 
Cooperating with regional department stores to run a website that
introduces region-specific items and other goods, among other measures●“Scrambled Merchandising” at Irodori Marché“Hoop” complements the main for luxury foods, bringing
together select products that can only be found here.
Meanwhile, “Abeno and” will be reformed as a venue forhigh-quality lifestyle proposals aimed at the increasing
number of young families that live nearby.

Corporate Information

 oing forward, we aim to expand our business areas by workingGon our restaurant and home center businesses, among others,
while also focusing our management resources on high-profit
businesses through product portfolio management.

Initiatives for Materiality

Advancing the franchising business●

SDGs topics
Clothing recovery project
Since 2021, our stores have been running a project to recover clothing that is no longer needed. This project has been carriedout with Shoichi Co., Ltd., allowing the unwanted items that customers drop off at our stores to be used as part of Shoichi’s
volunteer projects and to be donated to facilities such as orphanages or special needs schools in Southeast Asia. From when the
project began in August 2021 to October 2022, all of our stores combined had received around 33,000 items of clothing. Throughthis project, we are working hand in hand with our customers to bring about a recycling-oriented society.

Kintetsu Group Integrated Report 2022

42

KINTETSU RETAIL HOLDINGS CO., LTD.
Through the retail and restaurants businesses, we create futures that excite
to support customers’ lifestyles.

Business Overview

Management Resources

Kintetsu Retailing includes a number of businesses, mostly
within Kintetsu Railway stations. These include convenience stores,
high-quality food supermarkets, and retail store and restaurant
management. It also covers the management of tenants’ in-station
stores and the Time’s Place shopping mall, and of roadside service
stations alongside expressways. In recent years, we have gone
into new business areas such as craft beer or, with the aim ofrevitalizing our regions, irodori kintetsu, a business that discovers,
processes, and sells desirable products from those regions.
Kinsho Store, meanwhile, has expanded to operate a totalof 37 Supermarket KINSHO and Harves stores that offer highly
appealing products and services, particularly along Kintetsu lines
and in the southern part of Osaka Prefecture.

Business Environment
Due to the COVID-19 pandemic, the number of people diningout together at restaurants dropped, but demand for takeout
grew and sales in the e-commerce market have continued to
grow. These and other trends show how customers’ consumer
behavior has undergone great change. On the other hand,changes in lifestyles and the advances of digitalization areopportunities to create new contact points with customers or

Shigenobu Oya
Representative Director
and President

43

Kintetsu Group Integrated Report 2022

Kintetsu Retailing■ Business expansion in convenient locations inside train stations■ Development of original-brand stores in the restaurant business,such as Edogawa, Hyakuraku, and Caffè Ciao Pressoof operational expertise in diverse industries andoperational models
Kinsho Store■ Brand recognition and trust from society backed up by morethan 65 years of sales■ Ability to provide fresh perishables that offer safety and peaceof mind, particularly those processed in-store■ Business expansion in convenient locations close to or inside
train stations■ Wealth

new businesses. As such, we have been expanding our efforts
to develop and expand e-commerce websites, create unmanned
stores, promote sales that use apps or signage, place orders for
products that utilize AI, and other initiatives.

Future Direction
Kintetsu Retailing’s mission is to pump life back into in-stationand station-vicinity shopping experiences, and so the developmentof the Kintetsu operational area is essential for our growth strategies.
That is why we are working to publicize the wonders that the area
along our lines has to offer through measures such as expanding
our store openings at Yamato-Saidaiji and Ujiyamada stations, anddeveloping our irodori kintetsu brand, which sells goods producedin the area. In our craft beer business, we will strive to introduce
stores with limited staffing and online sales, while for restaurants
we will develop chef-less stores will seek to develop, and seek toexpand sales channels for, takeout dishes.
Through Kinsho Store, we will endeavor to create “personalized”
stores that customers will select creating points of difference fromour rivals in the fiercely competitive supermarket industry. We
have shifted from a focus on price to a focus on value throughthe development of our private brand “Harves Quality” products.
In addition to our proposal-based sales activities—such as byproposing menus on sales floors and by providing information
through apps—we will strengthen other services, too, including
our online and mobile supermarkets.

We want to be a lifestyle partner that brings customers abundance totheir dining tables.

We will propose high-quality products, services, information, and dishes to make life richer.

Measures/Initiatives toward the Future
Kintetsu Retailing
Developing takeout dishes at Hyakuraku
Yamato-Saidaiji he Chinese cuisine brand Hyakuraku has been around for 60
Tyears, and as a new initiative that takes advantage of its strengths,
in April 2022, we opened a Hyakuraku takeout store at YamatoSaidaiji Station that focuses on dim sum, including steamed porkbuns, gyoza dumplings, and steamed shumai dumplings.

Investigating expanding the automatic ordering—which works
off sales predictions using AI—that we have currently introduced
for tofu and other items in the daily foods category, to preparedfood categories● 
Investigating expanding process center functions—which gather
and process meat, salted salmon and similar items—and using
them for all fresh foods and prepared food products●

Future plans xpanding sales channels for frozen foods via online sales,E
vending machines, and wholesalers● 
Developing brands around products, and taking on thechallenge of franchising

Initiatives for Materiality

Business Strategies●

SDGs topics
Kintetsu Retailing

Kinsho Store

Aiming for superior workplaces

Environmentally friendly wooden spoons andpaper straws

One of our duties, as a company involved in store
operations that is supported by its many employees, is toaspire to ensuring all employees can work in good healthand safety, and to that end we implement a wide range ofinitiatives. At head office departments, in April 2021 we
introduced a flextime system and working from home. In
terms of employee health, in May 2022 we set ourselves
health management target, and in August that same year weestablished an external helpdesk for health-related matters.
That same August, we also made it possible for parents to use
paid leave they had accumulated to look after their children,
so as to support their raising children and balancing work. In
the future, too, we are aiming to develop workplaces whereanyone can find it easy to work, and we will be taking strides
in putting in place a working environment that supports that.

In July 2020, we stopped giving out disposable plasticbags for free, and as well as encouraging customers to bringreusable bags, we have been providing disposable bags
containing biomass materials, and charging for them. Also,in April 2022, we started gradually switching our disposable
plastic spoons and straws to ones made from wood andpaper respectively, which we provide without charge.
We use notices and similar to ask customers to only takeas many as they really need, so as to help us make more
effective use of resources, and we are working to reduce theamount of overall amount of plastic we give out each year.

Kintetsu Group Integrated Report 2022

Corporate Information●

Kinsho StoreUse of IT technology and streamlining of logistics

Messages fromthe Top Management

By making the areas within and underneath train stations more fun and more appealing,
we will produce exciting, lively places to visit.

Overview ofthe Kintetsu Group

KinshoStore

We will become a local developer for in-station and station-vicinity stores.

Kintetsu Group’s
Value Creation

Future Ideal

Kintetsu
Retailing44

Kintetsu Miyako Hotels International, Inc.
We create a heart-warming time with a subtle and graceful sensibility.

Business Overview

Management Resources

From city hotels to resort hotels and traditional Japanese
inns, we operate 22 facilities with a total of around 5,400
rooms inside and outside Japan, providing attractive service
to our guests.
We have inherited the Miyako brand’s reputation for being
able to meet guests’ diverse needs, and we continue to deliver“heart-warming time with a subtle and graceful sensibility” toour guests.

Business Environment
The COVID-19 pandemic has put the hotel industry in adifficult situation. Although the situation is still uncertain,
demand is expected to recover due to the lifting of movement
restrictions and easing of immigration restrictions. In particular,■ Hospitality inherited from 130 years of tradition■ Historical hotels rooted in the region■ A round 5,400 guest rooms in 22 facilities inside andoutside Japan■ A round 90,000 Miyako Plus members (as of December2022)■ Miyako brand reputation for being able to meet guests’

diverse needs

the Expo 2025 Osaka, Kansai is a major business opportunity
for us. In addition to hotels in Osaka area, which are locatednear the Expo venues, we will make efforts to take advantageof the strengths of our bases, such as attracting guests tohotels located in Kyoto and Ise-Shima areas.

Future Direction

Takashi Nishimura
Representative Director
and President

45

Kintetsu Group Integrated Report 2022

Kintetsu Miyako Hotels International has developed a hotelbusiness that can meet guests’ diverse needs, including city
hotels, resort hotels, and traditional Japanese inns.
We have three business categories: Miyako Hotel, which
are full-service city hotels; Miyako City, which are casualservice city hotels; and Miyako Resort, which are full-service
resort hotels. By continuing to pass on and refine our service,
we aim to be the hotel brand of choice for guests.
Going forward, we will promote efforts in the area ofmanagement contract hotels’ operations, and we will apply theexpertise we have gained by working with other companies toall of our hotels. This will enhance our operational capabilities
and we will strive to provide hospitality that goes beyond evenour guests’ expectations.

Measures/Initiatives toward the Future wned/directly managed hotels: investigating redevelopmentOand opening new hotels at assets owned by Kintetsu Real EstateCo., Ltd.; Management contract hotels: assessing proactive
expansion in major cities

Sheraton Miyako Hotel Osaka s an investment to raise the brand power of Miyako Hotels &A
Resorts, prioritizing renovation of guest rooms at core hotels
and those with high profitability

Management contract hotels●●

 ollaborating with Blackstone to improve the value andC
performance of our hotel business by maximizing their knowledge
Investigating Blackstone’s renovation investment plans for
Miyako Hotel Kyoto Hachijo and Hotel Kintetsu Universal City
particularly for guest rooms, of which the total amount ofinvestment will be several billion yen

Miyako Hotel Kyoto Hachijo

SDGs topics
Shima Kanko Hotel

Miyako Hotel Kyoto Hachijo

Publicizing appealing food in collaboration
with the local region

Collaborating with Kyoto Prefectural Nougei High School
Food SDGs Project

Shima Kanko Hotel is located in a land blessed with delicious
ingredients from surrounding mountains and seas. And throughits Gastronomy campaign, the hotel hopes to share theingredients’ attractiveness with the world through cuisine.
Each month, the hotel holds a Ise-Shima Gastronomy
tasting event, at which those involved in the dishes that drawout the full flavor of the local ingredients give talks, and works
to convey the appeal and culinary richness of the Ise-Shimaregion and the wider Mie Prefecture.
One “blue seafood” (a sustainable marine resource) that isfarmed in the prefecture is sujiaonori (Enteromorpha prolifera),a type of seaweed. As well as developing dishes that use
sujiaonori as an ingredient, chefs are also creating dishes using
Taki sustainable salmon—salmon that has been farmed on-landand fed with local ingredients.
In the future, in order to protect
our finite marine resources, wewill be working with those in
the aquaculture industry to
spread the word about thequality of farmed ingredients.

We are working on learning and practicing the importanceof “food” and “SDGs” (the UN’s Sustainable Development
Goals) in cooperation with Kyoto Prefectural Nougei HighSchool.
Miyako Hotel Kyoto Hachijo takes eggs, meat, andvegetables that the school has produced, and transforms
them into safe, secure food for their guests. This provides
the school’s students with an opportunity to learn about their
responsibilities as producers and about real distribution. The
initiative also allows hotel staff to deepen their understandingof agriculture and livestock. By bringing both groups
together, not only does it enable local production for local
consumption, the effort these people of all ages put into
food education contributes to the local food culture and theSDGs.
At present, as a further
initiative, we are operating“composting” aiming tocirculate food by recycling
raw waste.

Ise-Shima Gastronomy banquet

Initiatives for Materiality●In 2021, we sold eight hotels to specific purpose companies
financed by Blackstone and ourselves, and started to prompt
the dual-axis hotel business approach with both owned/directly
managed hotels and management contract hotels.

Corporate Information●

Owned/directly managed hotels●

Business Strategies

Promotion of the dual-axis hotel business
management approach

Messages fromthe Top Management

We will provide hospitality that has been refined by 130 years of tradition, which continues to
evolve in response to the times.

Overview ofthe Kintetsu Group

Future Ideal

Kintetsu Group’s
Value Creation

We will improve the attractiveness of Miyako brand and promote
the dual-axis management approach with both owned/directly
managed hotels and management contract hotels.

“Composting” aiming to circulate food

Kintetsu Group Integrated Report 2022

46

KNT-CT Holdings Co., Ltd.
We aim to be a “Hybrid Communication Company” inspired by the concept ofproviding memorable experiences and encounters for people around the world.

Business Overview

Management Resources

Kinki Nippon Tourist (KNT) and Club Tourism (CT) are
the two core brands of KNT-CT Holdings Co., Ltd. Since
its founding, KNT has provided its customers with the bestproducts through its unique and abundant experiences
and achievements, as well as the planning capabilities toprovide corporate and business services with human touch
communication. CT is a media-based travel agency that hasdeveloped unique tours with theme-specific originality.

Business Environment
Customers’ needs have diversified as a result of the effects of
the COVID-19 pandemic on consumer behavior. There are also
concerns that issues such as political instability, soaring crude oil
prices, the weakness of Japanese Yen, and other price rises may
be here for the long term. Therefore, the future is unclear, andour existing business models find themselves in an increasingly
challenging environment.

■ E xtensive marketing, planning and proposal capabilities,

as well as operational capabilities with excellent hospitality
which gained through our business operations by ourcreative and experienced human resources■ Our sales networks and track record of trust witheducational institutions, corporations, public agencies andmunicipal offices■ Membership base of more than 10 million people (CT has 7
million members and KNT has 3.4 million members)■ Nationwide suppliers’ network (The “KNT-CT Partners Association”
consists of lodging, sightseeing, and transportation-related facilities
with around 3,600 facilities, and the “Tabimaru-kai” organization
incorporates around 170 companies and 480 agency shops thatcarry out affiliated sales.)Under these circumstances, we are working on businessstructure reforms, reviewing cost structures, promoting DX,
and investing in systems to meet new needs. Simultaneously,
we are going to expand our BPO business and regional cocreation business to diversify our business portfolio, and tocreate new businesses. Through such measures, we areworking to build a structure that will allow us for sustainablegrowth.

Future Direction
Akimasa Yoneda
President & CEO

47

Kintetsu Group Integrated Report 2022

We have been focusing on the travel business, andwe are striving to transform ourselves into a new businessmodel which is capable of diversifying customer needs, andachieving sustainable growth under the rapidly changing
business environment.
To implement this, we are continuously concentrating on
specialized fields in our existing businesses. At the sametime, we are establishing and expanding new businesses
in travel-related services and proximity areas by leveraging
our strengths in the travel business in order to diversify ourbusiness portfolio. In addition, we aim to become a “HybridCommunication Company” that combines highly efficient
services using IT and warm human services.

Measures/Initiatives toward the Future●

Travel Avatar Concierges

Future plansIntroducing year-round services available in multiple
languages● 
In addition to “Pre-Trip,” wide-ranging assistant services
through “Mid-Trip” and “Post-Trip” will be provided throughthe application.
●●

 elling products with rich regionalS
flavors and themes from all overJapan

Creation of new businesses
Short- and medium-term initiatives

 tilizing Avatars to introduce theUcharms of specific destinations
and the local products●●

VR Mall concept

Expansion of the New Club 1000 business● reating a new business
C
model
which
bring
together regional tourism
resources and contents,and enhancing destinationbased travels rooted in the
areas
Signed the “Comprehensive Collaborative
Agreement on Tourism Promotions andRegional Revitalizations” with the Nishimeya
Village, Aomori Prefecture

Development of VR malls● ffering venues (“clubs”) for exchange interests on an onlineO
platform, and expanding our communication business thatconnects like-minded people with their peers and enlivening
them with regular events. (15 clubs as of September 2022 ⇒30 clubs by the end of FY2022)

Messages fromthe Top Management

Expansion of the regional co-creation business●

Kintetsu Group’s
Value Creation

 ffering assistant services through avatar concierges whoOhave special expertise in each destination and theme (as of July
2022: 19 avatars / 11 destinations / 5 themes)●

 s the services directly related to travel business, establishingAand expanding our on-demand printing, contact center, temp
agency, and e-commerce businesses
Developing a virtual tour business by using VR/AR and AI
 eveloping and marketing new future foods that areDenvironmentally friendly to the Earth as a part of SDGs education

Medium- to long-term challenges●

 urrently promoting regional development support business,Cethical promotion business, and educational development
business in business fields related to travel

Corporate Information●

 eveloping the subscription service “Club Tourism Pass (CTP)”
D
as one of the online platforms since October 2021

Business Strategies

Promotion of Avatar DX project

Overview ofthe Kintetsu Group

Organically combining our strengths in the travel business, such as proposal capabilities andknow-how with diverse alliance networks, we will provide not only extraordinary pleasures
such as travel and events, but also everyday pleasures such as life support.

Initiatives for Materiality

Future Ideal

We are the company that provides enjoyments and excitements invariety of scenes in everyday life as well as in the extraordinary.

SDGs topics
Blue Planet (KNT)
In October 2021, KNT launched “Blue Planet,” a website selling luxury inns and hotels. The website
introduces carefully selected traditional Japanese inns and hotels based on the Group’s uniquesustainability policy in response to the needs of customers seeking sustainable travel these days.
We intend to further promote this activity and use “Blue Planet” as a platform for the KNT-CT HoldingsGroup’s SDG-related activities and expand it as a brand for SDG-related products and services, such as
Club Tourism’s universal tours.

The Blue Planet is abrand that represents oursustainability initiatives.

Kintetsu Group Integrated Report 2022

48

Materiality

Creating a Lifestyle that Anticipates Changes
in Values

1 Providing value through digital technologies■ Launch of the Virtual ABENO HARUKAS on metaverse space
In the spring of 2023, we plan to work with Cluster, Inc. to utilize
its strengths in virtual spaces and make ABENO HARUKAS, thefocus of many of our resources, the stage for our creation of Virtual
ABENO HARUKAS, which will fuse the real and the virtual.
Kintetsu Real Estate Co., Ltd. will take the lead, and collaborate
with Kintetsu Railway Co., Ltd., Kintetsu Department Store Co.,
Ltd., Osaka Marriott Miyako Hotel, and others to trial new businessmodels. Moreover, we provide business incubation functions where
young people and creators are free to come up with new ideas at
Ten-Shiba, the green plaza we operate in a metaverse space.
Looking ahead, in addition to this urban metaverse, we will
also work to bring tourist attractions, suburban districts, and otherlocations along our lines into the metaverse.

3D-CGI designs

Virtual ABENO HARUKASABENO HARUKAS■ Unmanned stores
In a joint project between Kintetsu Retailing Co., Ltd. andFamilyMart Co., Ltd., in November 2022 we opened a convenience
store that uses an unmanned payment—the first shop of its kindin Kansai—on the fourth floor of Fuse Station, on the Nara Lineplatform. The store, a practical application of an unmanned
payment system developed by TOUCH TO GO Co., Ltd., allows
customers to do their shopping quickly and without a clerk present.
Kintetsu Real Estate Co., Ltd., meanwhile, has opened two
unmanned stores, under the “SMART SPOT” name, since December
2021 to enable online consultations about housing. The company
also launched its K∙DogSpa business in November 2022. Thesefacilities are self-service spas for dogs, a new service that isperfect for dog lovers to bathe and clean their dogs. There are now
three stores open close to Kintetsu stations, including KawachiHanazono Station.

FamilyMart convenience store that uses an unmanned payment system, on the
Nara Line platform on the fourth floor of the Fuse Station

SMART SPOT

K∙ DogSpa■ Digitalization of train and bus tickets
At our various train and bus companies, we have considered how they are used and their characteristics, and are promoting
digital tickets and cashless payments to make buying and using tickets easier. Recently, we have been undertaking the following
measures.
Company49

Timeframe

Measures

Kintetsu Railway

Since Mar. 2022

Digital ticket service that uses QR codes (see page 53)

Iga Railway

Since Mar. 2022

Digital travel passes in collaboration with RYDE, Inc.

Yoro Railway

Since Mar. 2022

Smartphone season tickets developed with KINCHAKU Co., Ltd.

Yokkaichi Asunarou Railway

Since Aug. 2021

Transport IC card system and IC season tickets with support fromthe city of Yokkaichi

Kintetsu Bus

Since Sep. 2022

Bus Mori! smartphone season ticket provided by Wellnet
Corporation

Nara Kotsu Bus Lines

From Mar. 2023

Online launch of a cash-based IC card season ticket, CI-CA plus,
and start of automatic renewal services

Mie Kotsu Group

Since Apr. 2022

Mie Kotsu Group App with digital tickets available via the app

Kintetsu Group Integrated Report 2022

Iga Railway

Kintetsu Bus

2 Responses and proposals for various lifestyles
Messages fromthe Top Management■ New style of rolling stock to meet diverse needs
The new style of general rolling stock that Kintetsu Railway Co., Ltd. will introduce in autumn 2024
is fitted with features that will make them easy to use for various different customers. For example,
they will have seats for passengers with baby strollers or large baggage, and there are seats that canswitch between facing parallel or perpendicular to the direction of travel. They are made to be moreaccessible and are fitted with security cameras to provide comfortable journeys.

Kikumidai Residential Area

In March 2022, Kintetsu Real Estate Co., Ltd. and Kintetsu Railway Co., Ltd. opened K∙BLOC
HANAZONO, the first garage house on the Kintetsu Line, with 6 buildings and 12 units, utilizing thearea under the elevated railroad tracks east of Kawachi-Hanazono Station.
A joint development with DAYTONA HOUSE, we offer a new style of home for diversifying ways ofworking and living. In the future, we plan to expand this concept to other sites in stages.
K∙ BLOC HANAZONO■ Assisting with PTA duties

Initiatives for Materiality

Since the summer of 2022, Kinki Nippon Tourist Co., Ltd. has been utilizing the experience andexpertise it has gained through many years of working closely with educational institutions throughits educational travel business, in order to provide contracted PTA services. We plan to expand therange of services we offer, with the aims of reducing the number of tasks that parents, guardians or
schools are required to do, so that they can spend more time with children.

3 Food with new value■ Group collaboration provides fresher vegetables
Since July 2022, we have been transporting fresh vegetables from Kintetsu Farm Hanayoshino (operated by Kintetsu Real Estate)
to Haruchika Marché, inside the Kintetsu
Example transport flow
Transported by Sakura Liner, around 3 hours from harvest to shopfloor
department store at ABENO HARUKAS, in
Osaka via the Sakura Liner limited express.
This ensures that they can be sold the verysame day as they are harvested. Haruchika
Marché has been well received, and in
Kintetsu Farm
Departs Fukugami
Transported on the
Arrives at OsakaHaruchika Marché
November 2022, another was opened in
Hanayoshino
Station
Sakura Liner
Abenobashi Station
Kintetsu Department Store, Higashi-Osaka
Store.

Corporate Information■ Garage House, proposals for diverse home lives

Business Strategies

In the autumn of 2022, Kintetsu Real Estate Co., Ltd. started selling homes with a new concept.
This new way of suburban life, a result of lifestyle changes prompted by the COVID-19 pandemic,
is known as Ikoma Kikumidai Nature Style and is located in Ikoma, a city in Nara Prefecture. Here,residents can enjoy a way of life that is closer to nature from the comfort of their own homes. We plan
to expand this concept from Kikumidai Residential Area to other locations.

Kintetsu Group’s
Value Creation

Overview ofthe Kintetsu GroupSpaces for strollers and large baggage■ Nature Style—a life closer to nature■ Lifestyle-related indicators and targets (KPIs)
Company
Kintetsu Railway

Indicator
Introduction of a new style of general rollingstock to meet diverse needs

Kintetsu Department Store E-commerce sales
Kinsho Store

Proportion of total sales of key health products

FY2021 results

Target year

Target—FY202440 railcars¥5.8 billion

FY2024

Gradual expansion

0.3%

FY2025

3%

Kintetsu Group Integrated Report 2022

50

Materiality

Energizing Communities by
Enhancing the Network

1 Community development in the areas along Kintetsu lines■ Promoting redevelopment projects around stations
Kawachi-Kosaka Station

Gakuemmae Station

In the 13,000 m2 area we own close to the station, we will consider
the local characteristics as we push ahead with a comprehensive
development plan (replacing Kosaka Buildings 1–5)

We acquired an approx. 50,000 m2 plot of land around a kilometer
north of the station, and we are beginning to go ahead with alarge-scale residential development plan, which will include morethan 500 condominiums and more than 100 house plots.

Kintetsu-Nagoya

Work to take down Kosaka Building 1
1

4

Kosaka Buildings 1–5
3

5

OsakaNamba
OsakaYumeshima
Abenobashi

Yamato-Saidaiji Station
Kintetsu-Nara

YoshinoKintetsu-Yokkaichi Station

Kashikojima

Kintetsu department
store
u- n
tets atio
Kin hi St
kaic
Yok

We continue to explore the potentialof the Uehommachi terminal as atransport and tourist informationbase, with the opening of theintegrated resort in Yumeshima.

mmae
Gakue tionSta

We will promote a development planthat ensures the result becomes a
regional landmark, taking into accounthow best to commercialize theconcept of Bus Terminal Project
promoted by the Ministry of Land,
Infrastructure, Transport and Tourism.

Kawachi-Kosaka
StationOsaka-Uehommachi Station

Development
site
PARADIS
Gakuemmae

Kyoto

2

Nara City
Western
Library

Former site ofStar Island

Bus Terminal
Project

Community development around Yamato-Saidaiji Station
In line with the redevelopment of the area to the south of Yamato-Saidaiji Station, we are working with local authorities
and others to promote the integrated redevelopment of station and surrounding area using the land we own around thestation, and making the area more prosperous.
Station (Since 2020)●T o match the accessible north-south walkway that Nara

City has put in place, we have reorganized the ticket gates,
extended the concourse, and in line with our “Kinmirai(Near-Future) Station” concept, made the station a model
station for the use of cutting-edge technologies such as AI
robot guides.
●W e have gradually expanded
the Time’s Place Saidaiji instation shopping mall, andcreated the VIEW TERRACE,
which gives customers a viewof the train lines as they eat.
VIEW TERRACE

Station-front plazas (Since 2021)
Nara City has developed plazas in front of the station, on thesouthside in fiscal 2021 and on the northside in fiscal 2022.
Kintetsu department store (2022)
We renovated the department store as a “regional co-creation
town center” with the concepts of strengthening Nara publicity
and making the store an indispensable part of regional life.
New commercial facility in front of the station (2023)
We will open a new facility wherevisitors can feel nature, centeredon a lawn plaza, with the conceptof a commercial facility where
people, town, and nature caninteract.

■ Community development around Nara Medical University

Hospital

In November 2022, Kintetsu Railway Co., Ltd. signed a cooperative agreementwith Nara Prefecture, Nara Medical University, and Kashihara City for community
development in district to the south side of Nara Medical University Hospital. This
collaboration between the region and the railway aims to help each other develop
sustainably, and working with others involved we will establish a new station in thesame area (on the Kashihara Line between Yagi-nishiguchi Station and Unebigoryomae
Station). We will take active part in this community development project centered on
the new station.

51

Kintetsu Group Integrated Report 2022

Signing ceremony1

■ Regional co-creation town centers
Kintetsu Department Store Co., Ltd. is pressing ahead with its shift to making its stores in key regions and suburbs “regional
co-creation town centers,” which fuse commercial, lifestyle, and community functions. We have signed cooperation agreementswith local authorities, and as well as advancing our discovery and sales of regional goods, we are introducing large specialist storesthat cater to local needs and open mixed sales floors that combine clothing, food, and miscellaneous goods. In such ways, we are
creating local community spaces.
Timeframe

KusatsuCharacteristics

Agreement with local authorities

2020

⨋

Community-based “Plugs Market” and “Oumiji”

2020: Signed an industrial promotion
agreement with Shiga Prefecture

Yokkaichi

2022⨋

Community-based “Plugs Market” and “Iseji Terrace”

2022: Signed an industrial promotion
agreement with Mie Prefecture

Nara

2022

Kashihara

2022 or
later

⨋
⨋
⨋

Community space from the village of Yoshino, “Yagimoku Hiroba”
Scheduled to introduce the community-based “Plugs Market”—
2021: Concluded a comprehensive
partnership agreement with Kashihara City

Kintetsu Group’s
Value Creation⨋

Community-based “Yamatoji Shop” and “Nara-ni-yoshi”“Scrambled Merchandising” mixing clothing, food, and miscellaneous goods

Overview ofthe Kintetsu GroupStore

Messages fromthe Top Management

2 Co-creation for regional bases and contributing to revitalizing local industry■ Expanding the “Plat-HOME (platform) for Housing■ Expanding the “irodori kintetsu” brand of

Kintetsu Real Estate Co., Ltd. has established 27 “Plat-HOME(platform) for Housing and Living” stores and 2 unmanned “SMART
SPOT” stores in areas along the Kintetsu lines to provide a onestop shop for consultations and information about housing—including real estate brokerage, renovations, and detachedhomes—and other lifestyle-related topics. At the flagship storesin Gakuemmae and Hanayoshino,
we hold various seminars, culture
workshops, and other events andthese stores acts as a venue forinteraction that can help makelives richer.

Kintetsu Retailing Co., Ltd. is working with producers andprocessing companies in the Kintetsu operational area throughits “irodori kintetsu” brand. This involves developing and selling
original regional goods that boast local characteristics.
The desserts, prepared food, alcoholic drinks, and othergoods made using local ingredients that we have developed so far
as currently being sold at a
specialist shop at OsakaAbenobashi Station.

and Living” integrated sales base network

regional produce

Plat-HOME (platform) for Housing
and Living

irodori kintetsu Abenobashi Store■ Community development indicators and targets (KPIs)
Company

Indicator

FY2021 results

Target year

Target

Kintetsu Real Estate

Redevelopment projects (Uehommachi, Kawachi-Kosaka,
Gakuemmae, Yamato-Saidaiji, and Yokkaichi) to increase
resident and visitor populations in the development areas—

FY2023
onwardMonitoring indicators*

Kintetsu Railway

Number of railway passengers

456 million

FY2025517 million

Kintetsu
Department Store

Commercial service facility complexes constructed aspart of community development in cooperation with
communities and local authorities

Yokkaichi Store, Nara Store(FY2022 results)

FY2024

Gradual expansion offacility numbers

Kinsho Store

Mobile supermarkets in operation

20 (cumulative)

FY202430 (cumulative)

Business Strategies

Yagimoku Hiroba

Initiatives for Materiality

Nara-ni-yoshi

Corporate Information

Iseji Terrace* We do not set specific targets, but use indicators to verify results in order to manage progress.
Kintetsu Group Integrated Report 2022

52

Materiality

Enriching People and Communities with Travel

1 Ise-Shima Area
Making use of the many resources with which the area is blessed—including Ise Jingu shrine, picturesque coastal scenery,culture of female divers, and rich food culture—we will work with the region to make spread the word about the charms of the areaand make proposals for various ways to enjoy it so as to give the whole region a boost.

■ New ways to enjoy Ise-Shima
Developing an outdoor experience complex
Kintetsu Real Estate Co., Ltd. and Kintetsu Golf & Resort Inc. are making Kintetsu
Hamajima Country Club an outdoor experience complex, one of only a few in Japan. Whenit opens in 2024, it will feature glamping and experiential attractions.
The concept for our glamping is that it should be extremely luxurious, where glampers
can enjoy time on the grass under the stars, so we will provide a stay that is completely
unlike their everyday surroundings. By experiential attractions, we mean facilities such as
zip lines that deliver thrills among nature and allow visitors to enjoy a change of air. We haveincorporated active elements into the Ise-Shima area and through cooperation between
different group companies, we are creating new activity in the region.
Glamping facility

Renewal of the character rooms at Hotel Shima Spain
Mura
In February 2022, we updated the designs in our 20 themed
character rooms at Hotel Shima Spain Mura so guests canfeel even closer to the characters of the Shima Spain Village
theme park.
In addition to special
perks unique to the characterrooms, guests can also
enjoy a special full-course
dinner meal themed to thecharacters.

■ Initiatives for smoother travel
Digital ticket services that use QR codes
Kintetsu Railway Co., Ltd. started offering digital ticket
services that use QR codes in March 2022, and since thenhas been gradually expanding the service to include different
ticket types. On the service’s website, Kintetsu Ticket E-Mall,customers can purchase tickets such as the Ise Jingu Shrine
Visit Digital Ticket and the Ise/Toba/Shima Super Passport
Digital Pass. They can then hold a QR code displayed on theirsmartphone screen over scanners on automated ticket gateson the railway. They can also use the code at their destination.
This enables them to buy and use tickets and enjoy their trips
seamlessly via their smartphone.
Moreover, we are expanding our online sales channels,
including offering the Kintetsu Ise-Shima Free Pass on theCentral Japan Railway Company’s EX Travel Portal website,
and the Ise/Toba/Shima Super Passport Digital Pass via the
Rakuten Travel Experiences and Jalan websites.
Note: “QR code” is a registered trademark of DENSO WAVE Incorporated.

53

Kintetsu Group Integrated Report 2022

RV Park at Toba Seaside Hotel
In order to cater to a wider variety of travel styles, in
October 2022 the Toba Seaside Hotel opened up an areaof the hotel grounds as afee-charging facility where
guests can enjoy sleeping
in their campervans.

Note: An RV Park is a facility for guests wishing tosleep in their vehicles, and meets standards set
by the Japan Recreational Vehicle Association.

Meotoiwa Rocks

UjiyamadaIse Jingu(Geku)Mie Pref.

Toba Seaside
Hotel

Toba

IsuzugawaIse Jingu(Naiku)Messages fromthe Top Management

IseshiIse-Shima National Park
Shima Kanko Hotel The Classic

Meotoiwa Rocks
Shima Spain Village
Ugata

Hamajima
Country Club

Shima Kanko Hotel
Miyako Resort Shima Bayside Terrace
Kashikojima Hojoen
Kintetsu Kashikojima Country Club
Kashikojima Hojoen

Kashikojima Espana Cruise

Overview ofthe Kintetsu Group

Kashikojima

Opening event

Campaign logo

cocoyan! walking tour video series

Cycling trains

Since October 2022, we have been releasing a series ofvideos on our official YouTube channel. These videos combine
maps and footage of spots that locals recommend to suggest
walking routes and new ways toenjoy the Kintetsu operational
area. The first video to be released
was an introduction to Ise Jingu’s
Geku sanctuary.

Local trains running between Matsusaka Station andKashikojima Station now allow passengers to bring on theirbicycles without needing to be folded or put in a specialist
container. As well as proposing a new style of going outthat combines train and bike travel, we are working withrental bicycle shops in theregion to encourage cycling
tourism in Ise-Shima.
Since September 2022,
we will be running thesetrains almost year-round.

Bargain train travel packages in collaboration with
Shima and Toba

Adult travel in the finest of luxury—sales of Kintetsu’s
custom-made travel packages

Through cooperation with the cities of Shima and Toba,
since autumn 2021 and into fiscal 2022, we have been selling
discounted train travel packages by which customers canenjoy local foods and aimed to boost tourism demand throughour railway services.

Between October 2022 and March 2023, we are selling
travel packages that allow customers to enjoy luxurious travel
to and within the Ise-Shima area. This special plan involves
exclusive tours or similar that boast extraordinary levelsof hospitality, with travel courtesy of the Shimakaze limited
express and stays at each of five facilities, including Shima
Kanko Hotel The Bay Suites.

Private compartment on the Shimakaze,sightseeing limited express

Initiatives for Materiality

In collaboration with several cities, including Ise, Toba, and Shima, we are
running a campaign in the Kintetsu area—MEET SMILE! Ise-Shima—from
September 2022 to March 2023. The theme for the campaign is smilingfaces, and the region is coming together and conveying the charms of theIse-Shima area and its wealth of nature and good food.
Through the campaign’s photo contest, limited-edition train cars, travel
packages, and events, we hope to enliven the entire region and attract visitors
to Ise-Shima as tourism demands begins to recover following the COVID-19
pandemic.

Corporate Information

MEET SMILE! Ise-Shima

Business Strategies

Kintetsu Group’s
Value Creation■ Railway-specific initiatives to strengthen local ties

Shima Kanko Hotel The Bay Suites

Kintetsu Group Integrated Report 2022

54

2 Nara Area
Home to several scattered World Heritage sites and the teeming deer of Nara Park, which is located next to the conveniently
placed Kintetsu-Nara Station. Lots of people come from throughout Japan and the rest of the world to experience the old-world feelof Nara and we are working to promote initiatives that convey its wonders.

■A ONIYOSHI, sightseeing limited express
In April 2022, with the goal of capturing demand among domestic and international tourists coming to Nara via Kyoto, we debuted
a sightseeing limited express train to run directly between Osaka, Nara, and Kyoto, a service that has been extremely well received.
From the moment passengers step aboard the train, their journey into antiquity begins, with an interior design that features designs
in the style of Tempyo-period (710–794) art inspired by the treasures of Nara’s Shosoin Repository. In December, the number ofreturn journeys between Kyoto and Nara each day was increased by one, taking the daily total to four return journeys a day.

AONIYOSHI route

Shinkansen

Kyoto

From Tokyo

KintetsuNagoya

Kintetsu-Tambabashi
From Hakata

ShinOsaka

Osaka-Umeda
KobeSannomiya

OsakaNamba

Tennoji
OsakaAbenobashi

OsakaUehommachi Gakuemmae
Tsuruhashi Ikoma

Yamato-Saidaiji

KintetsuNara

Yamato-Yagi
Kashiharajingu-mae
YoshinoKashikojima

Publicizing the wonder of the Nara Park area
Nara Deer Trains, wrapped with a graphic
designTo make journeys to Nara even more fun, in
December 2022 we started operating Nara Deer
Trains.
The images that illustrator Gemi created,
inspired by the deer and scenery of the area aroundKintetsu-Nara Station, have been applied to theinside and outside of rolling stock, resulting in traincars that are apleasure to ride in.
These trains aremainly operating
between KintetsuNara Station andKobe-Sannomiya
Station.

Giving Kintetsu-Nara Station a secondary station name: “Nara Park”
Nara Park is within walking distance of KintetsuNara Station, and to make it more widely known how
convenient the station is for those wishing to visit
the park, in December 2022, we gave Kintetsu-Nara
Station a secondary station name, “Nara Park.”

Electric scooter sharing service
Since August 2022, AD KINTETSU CO., LTD. has
been recognized under the Ministry of Economy,
Trade and Industry’s New Business Exception
System, and has been running a trial for an electricscooter sharing service called TabiMO in the centerof the city of Nara, the first such business in theprefecture. We will propose new ways of touring
tourist attractions and tie it in to regional revitalization.

■ Improving access to Okuyoshino
Nara Kotsu Bus Lines Co., Ltd. has been running some Saturday, Sunday, andpublic holiday services of Japan’s longest route bus route, the Yagi-Shingu Limited
Express Bus, as the Yamakaze sightseeing limited express since October 2022. By
shortening the route it runs, the time it takes to get from Yamato-Yagi Station to
Totsukawa Onsen, in the south of Nara Prefecture, has been cut down by around 35
minutes to just 3 hours and 50 minutes or so.

55

Kintetsu Group Integrated Report 2022

Yamakaze, sightseeing limited express4 Promoting business that attract visitors to the region
Kinki Nippon Tourist Co., Ltd. and Club Tourism International Inc. have concluded cooperative agreements with local authorities
in regions across Japan to promote activities that raise the number of visitors to each area by utilizing its tourism resources, added
to regional revitalization, and contribute to enhancing the lives of the people that live there. We are working to develop tourism ineach region, and are planning and selling destination-based travel packages. Moreover,
we are endeavoring to offer support for personnel training in tourism-related industries
and for sales activities in larger cities. Our aim is to create a model for private companies
and local authorities to work together toward countryside revitalization.
In April 2022, KNT-CT Holdings Co., Ltd. announced that it would be working with
Kochi Prefecture on discovering new tourism resources and on attracting tourists to thearea, with an eye on tourism post-pandemic. In addition, Club Tourism International Inc.
and Kinki Nippon Tourist Co., Ltd. have sign cooperative agreements with each of theApril 2022: presentation of initiatives toward countryside
following authorities, and are pressing ahead with initiatives.
revitalization between Kochi Prefecture and KNT-CT
Holdings Co., Ltd.

■C ooperative agreements with local authorities since FY2021
In fiscal 2021, Club Tourism International
Inc. signed cooperative agreements in the fieldof tourism, and in fiscal 2022, Club Tourism
International Inc. and Kinki Nippon Tourist
Co., Ltd. signed comprehensive cooperative
agreements relating to tourism recovery andregional revitalization.

SignedPartner

Oct. 2021

Kamikawa Town,
Hokkaido

SignedNov. 2021

Taito City, Tokyo

Nov. 2021

Hachimantai City,
Iwate

Nov. 2021

Nanae Town, HokkaidoPartnerMar. 2022

Lake Nakaumi/Lake Shinji/
Mt. Daisen Area Tourist Bureau

May 2022

Shin’etsu 9 City, Town, and Village
Tourist Association AllianceJun. 2022

Minamiboso City, Chiba Prefecture

Nov. 2021

Nishimeya Village, Aomori Prefecture■ Tourism-related indicators and targets (KPIs)
Company

Indicator

FY2021 results

Kintetsu Railway

Active measures to attract visitors① Users of Ise-Shima limited express trains② Foreign visitors using our trains① Approx. 1.2 million② Approx. 4.9 million(Figure for ② is for FY2018)

FY2026① Aim to return to pre-pandemic levels(FY2018: approx. 2.65 million)② Aim to return to pre-pandemic levels—

FY2024350,000① FY2025② FY2023① 25② 216,000 attracted/sent to 3 prefecturesin the Tohoku region

FY2023① 25② 100% implementation ratio for
proposals③ 20% implementation

Accessible tourism participants

KNT-CT Holdings

Regional efforts to attract visitors①N umber of programs②N
 umber of passengers attracted/sent
Peace program & SDGs program①D
 evelopments target②P
 roposals target③O rizuru Project implementation ratio①1
 0② 76,000 attracted/sent
to 3 prefectures in the
Tohoku region—

Target year

Overview ofthe Kintetsu Group

Ohmiwa-jinja Shrine

Kintetsu Group’s
Value Creation

Kasugataisha Shrine

Business Strategies

Kashihara Jingu

Initiatives for Materiality

Ise Jingu

Corporate Information

Kintetsu’s railway lines run through Nara, Kyoto and Ise,home to many historical shrines and temples, including Ise
Jingu, Kashihara Jingu, Kasugataisha Shrine, and Ohmiwajinja Shrine. In the first few days of the New Year, the areas
are busy with the many people making traditional shrine or
temple visits.
At the beginning of 2023, Kintetsu Railway Co., Ltd. soldspecial handy tickets for those making New Year shrine or
shrinetemple visits for the first time in three years and ran local Example
visit ticket
trains all night on New Year’s Eve.
In January, we also offered tours using limited express trains that operated
a direct service between Hanshin Electric Railway’s Kobe-Sannomiya Station
and Ise. Nara Kotsu Bus Lines Co., Ltd. and Mie Kotsu Co., Ltd. put on extra
buses to provide access from stations, while Club Tourism International Inc.
sold shrine visit travel plans to visitors coming to the Kintetsu operational areafrom all over Japan. The entire group is working to support those making New
Year shrine and temple visits or other trips in the area.

Messages fromthe Top Management

3 New Year visits to shrines and temples along our lines

Target

Kintetsu Group Integrated Report 2022

56

Materiality

Contributing to the realization of a decarbonized
and recycling-oriented society
In order to contribute to the realization of a decarbonized and recycling-oriented society, we are promoting
various initiatives such as energy saving, CO2 saving, resource saving, and recycling, aiming to achieve the“Kintetsu Group Environmental Targets” formulated for fiscal 2030 and carbon neutrality by 2050.

1 Environmental Management System■ Kintetsu Group Environmental Policy(Created April 1, 2015)
The Kintetsu Group recognizes that protecting the global environment is a vital issue that should be worked toward jointly by all
mankind, and therefore aims for environmentally friendly corporate management.
1.	We will comply with all related laws and regulations and endeavor to protect the environment.
2.	We will work to prevent global warming and reduce our environmental impact through initiatives aimed at reducing energy andresource use and waste, while promoting recycling.
3.	We will raise employees’ awareness of the environment through environmental training.
4.	We will value the relationship we have with regional communities, and through environmental conservation activities we will
make a major contribution to society.
5.	We will spread this environmental policy among employees and make it available to the public.

■T he Kintetsu Group’s environmental promotion framework
Chairman: Kintetsu Group Holdings’
president
Members: Executives from majorgroup companies

・Formulates group policies

Kintetsu GroupCSR Liaison conference

Participants: CSR promotion reps
from group companies(manager level)

・Communicates policies and targets, verifies results

Kintetsu Group companies

Applies to all employees
at group companies

Kintetsu Group Holdings Co., Ltd.

CSR Committee

・Determines environmental policies
・Sets environmental targets and verifies results

・Examines individual company initiatives
・Acts as an information exchange
・Examine environmental impact data
・Set environmental targets
・Implement environmental training
・Enact environmental initiatives related to their own business■ Kintetsu Group Environmental Targets for FY2021–2030(Created October 2021)
Each company in the Kintetsu Group will formulate its own environmental targets, monitor and analyze environmental
impact data, and provide environmental education and enlightenment to employees in order to achieve the Kintetsu Group’s
environmental targets.
1.	The Kintetsu Group will aim to reduce energy use—measured by crude oil equivalency (kl)—in FY2030 by at least 20%
compared to FY2015 levels.
2.	The Kintetsu Group will aim to reduce CO2 emissions (total and intensity) in FY2030 by at least 40% compared to FY2015
levels. Going further, the group will aim for “virtually zero” CO2 emissions in 2050.
3.	The Kintetsu Group will strive to reduce the amount of water it uses and waste it produces.
4.	The Kintetsu Group will endeavor to have all group companies operate in an environmentally conscious way with respect totheir respective business and their supply chains.

* Scope of coverage
Clauses 1 and 2 refer to 12 companies with particularly high energy use. The 12 companies are in specific transport industries or specific industries that must
make periodic reports under the Energy Conservation Act and their CO2 emissions make up 95% or more of total emissions by Kintetsu Group Holdings andall consolidated subsidiaries.
Relevant companies: Kintetsu Railway; Nara Kotsu Bus Lines; Kintetsu Bus; Bocho Bus; Kintetsu Taxi; Kintetsu Real Estate; Kintetsu Miyako Hotels
International; Kintetsu Department Store; Kintetsu Retailing; Kinsho Store; Osaka Aquarium Kaiyukan; and Kin-Ei.
Clauses 3 and 4 refer to all consolidated subsidiaries

57

Kintetsu Group Integrated Report 2022

periodic reporting pursuant to the Energy Conservation Act: 12)

373,361 kl

310,362 kl-16.9%

774,414 t-CO2

478,770 t-CO2-38.2%

Total

1.350 t-CO2 /1,000 km

Intensity (railway)

CO2
emissions0.961 t-CO2 /1,000 km-28.8%
4.3%

Intensity (buses, etc.)

0.726 t-CO2 /1,000 km

0.757 t-CO2 /1,000 km

Intensity (facilities)

0.144 t-CO2 /m2

0.085 t-CO2 /m2

Target year

Target-20% or more

FY2030-40% or more

-41.0%

Energy use (crude oil equivalent)
Railway

Buses, etc.

Facilities(Thousand kl)

373
(100)

154

300

375
(100)

151

367
(98)

146

360
(96)

355
(95)

142

139

326
(87)

310
(83)

124

115

200

27

26

100

193

197

195

193

192

184

178

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

0

26

25

24

17

18

CO2 emissions (total) (Scope 1 + 2)

Railway

Buses, etc.

-16.9％

800

750
(97)

736
(95)

700

315

600

298

Facilities

Upper figure: emissions in thousand t-CO2
Figure in parentheses: index (100 = FY2015 levels)

646
(83)

289

69

400

68

67

487
(63)

479
(62)

177

171

45

47

289

266

261

FY2019FY2020

FY2021

202
66

300

390

200

384

380

337

100
0

555
(72)

242

500

FY2015FY2016FY2017-20% or more

FY2030(Target)(Thousand t-CO2)

774
(100)

Kintetsu Group’s
Value Creation

400

Upper figure: energy use in thousand kl
Figure in parentheses: index (100 = FY2015 levels)

FY201863-38.2％ -40% or more

FY2030(Target)Virtuallyzero
emissions

2050(Target)■ Energy-saving and CO2 reduction indicators and targets (KPIs)
Company

Indicator

Target year

Target① 87.7%② 34.9%③ -9.2%④-39.6% (total)
 -35.8% (intensity)

FY2030① 90% or higher② 40% or higher③ Reduction ofover 20%④ Reduction ofover 50%

New condominium buildings and detached houses① Percentage of those with thermal insulation Class 4② Percentage of “high-efficiency equipment” (water heater,
LED lighting, water-saving toilet)① 84.6%② 100%

FY2022① 100%② 100%

Kintetsu Department
Store

Greenhouse gas reduction rate (compared with FY2015 levels)

 -42.6%

Kinsho Store

Number of stores still using CFC refrigerants (R22)

Kintetsu Railway① Percentage of station LED lighting② Percentage of train interior LED lighting③E
 nergy use reduction rate (COE kl) (compared with
FY2013 levels)④ CO2 emission reduction rate (total, intensity) (comparedwith FY2013 levels)

Kintetsu Real Estate

FY2021 results

FY203014 stores

Business Strategies

Energy use

Percentage change(compared with
FY2015 levels)

FY2021 results

Initiatives for Materiality

FY2015 results

Corporate Information

Indicator

Overview ofthe Kintetsu Group■ Developments in the Kintetsu Group Environmental Targets (KPIs) (companies subject to

Messages fromthe Top Management

2 Energy-Saving and CO2 Reduction Initiatives

Reduction ofover 50%

2050

Zero emissions

FY20250 stores

Kintetsu Group Integrated Report 2022

58

■ Initiatives in the railway business■ Using sustainable aviation fuel (SAF)

Kintetsu Railway Co., Ltd. is committed to achieving its
environmental targets by switching to station/railcar-interior
LED lighting and energy-efficient railcars. As of end-March
2022, for example, energy-saving railcars account for 64% of
the company’s railcars (1,222 out of 1,906). New railcars tobe phased in from 2024, replacing the aging counterparts,
consume about 45% less electricity per car.

As part of its initiative to promote low-carbon transportation,
Kintetsu World Express, Inc. is increasingly switching to SAF(Sustainable Aviation Fuel). SAF produces about 80% less
CO2 emissions than its conventional counterparts throughits lifecycle, from production and collection of raw materials(biomass resources, used cooking oil, waste gases, etc.) to
manufacturing and combustion.
In support of All Nippon Airways’ SAF program, moreover,the company used SAF cargo flights in September 2021, thefirst flights originating from Japan. Subsequent developments
in 2022 include participation in Cathay Pacific Airway’s SAF
program in April, conclusion of an SAF agreement with
Lufthansa Cargo AG in October and of another SAF agreementwith All Nippon Airways in November. We will continue towork on various environmental programs to help realize adecarbonized society.

■ Initiatives in the bus service businessBus companies are increasingly switching to buses
emitting less CO2 such as hybrid/electric buses. Kintetsu Bus
Co., Ltd., for example, started operating two electric busesin February 2022, with five larger ones scheduled to be inoperation during fiscal 2022. Nara Kotsu Bus Lines Co., Ltd.
will also introduce electric buses in fiscal 2022.
Mie Kotsu Co., Ltd., meanwhile, started using “MieUmashikuni Green Electricity” (electricity generated byhydropower plants in Mie Prefecture, where their environmental
value is leveraged to eliminate CO2 emissions) from December
2021 to power their electric buses operated by the Isebusiness office. This is part of the company’s drive to promotelocal energy production for local consumption and CO2-free
operations.

■ Sourcing electricity from renewable energy
With the purchase of FIT non-fossil fuel certificate(originating from solar power farms in Mie Prefecture), Sanko
Real Estate Co., Ltd. switched entirely to renewable energy in
April 2022 for its electricity use.
This virtually translates into an annual consumption of
6 million kWh (or 2,500 metric tons of CO2 emissions) ofrenewable electricity.

■ Solar power generation
Kintetsu Real Estate Co., Ltd. generates a total of about
30 million kWh a year at four locations in Mie Prefecture (Iga,
Shima, Ise, and Nabari), one in Nara Prefecture (Oyodo-cho)and one in Oita Prefecture (Oita City) to power about 6,000
households. Likewise, Sanko Real Estate Co., Ltd. generates
a total of about 140 million kWh a year at 33 locations primarilyin Mie Prefecture, including Ise-Futami Megasolar “Hikari no
Machi,” to power about 38,900 households.

59

Kintetsu Group Integrated Report 2022

Signing an agreement with Lufthansa Cargo AG■ Awarded the highest ranked “CASBEE

Smart Wellness Office Certification”

Sanko Real Estate’s Second
Nagoya Sanko Building (provisionalname), which is scheduled to open
in the spring of 2024, was awarded
the “S rank” CASBEE Smart Wellness
Office Certification for the firsttime in the Tokai region. Its earthfriendly urban development initiatives
include installation of multipurpose
restrooms using rainwater for flushingand of fast-charging stations forelectric vehicles.

Artist’s impression (exterior view)

Note: CASBEE Smart Wellness Office Certification: A systemcomplementary to “CASBEE” (CASBEE for the Nagoya
Municipal Government), a comprehensive environmental
performance evaluation system launched in 2019 by theInstitute for Built Environment and Carbon Neutral for
SDGs, where environmental initiatives are evaluatedfor the use, performance and measures of buildings
contributing to maintenance and promotion of users’
health and amenity,

■ Energy use and CO2 emissions (companies subject to periodic reporting pursuant to the

FY2019FY2020

FY2021① Railway

kl

195,163

192,850

191,701

184,457

177,827② Buses, etc.

kl

25,69825,41024,20917,131

17,784③ Facilitieskl

146,369

141,624

138,645

123,942

114,751

Total

kl

367,230

359,884

354,555

325,530

310,362

CO 2 emissions (total)

Unit

FY2017FY2018FY2019FY2020

FY2021① Railway

t-CO2

380,000

337,000

289,000

266,000

261,000② Buses, etc.

t-CO2

67,12066,376

63,35044,71046,500③ Facilities

t-CO2

288,603242,347

202,174

176,756

171,270

Total

t-CO2

735,723

645,723554,524

487,466

478,770

CO 2 emissions (intensity)

Unit

FY2017FY2018FY2019FY2020

FY2021① Railway

t-CO2 /Thousand km

1.324

1.179

1.000

0.943

0.961

② Buses, etc.

t-CO2 /Thousand km

0.758

0.754

0.753

0.750

0.757

③ Facilities

t-CO2 /m2

0.136

0.115

0.093

0.081

0.085

・“Railway” is the total for Kintetsu Railway.
・“Buses, etc.” is the total for Nara Kotsu Bus Lines; Kintetsu Bus; Bocho Bus; and Kintetsu Taxi.
・“Facilities” is the total for Kintetsu Real Estate; Kintetsu Miyako Hotels International; Kintetsu Department Store; Kinsho Store; Kintetsu Retailing; Osaka Aquarium Kaiyukan; Kin-Ei; andNara Kotsu Bus Lines.

* CO2 emissions refer to those reported by each company to the Ministry of Land, Infrastructure, Transport and Tourism or the Ministry of Economy, Trade and Industry through periodic
reporting pursuant to the Energy Conservation Act.

* The total CO2 emissions for these 12 companies make up 95% or more of total emissions by Kintetsu Group Holdings and all consolidated subsidiaries.
* CO2 emissions from Kintetsu World Express are not included in the results prior to fiscal 2021 as it became a consolidated subsidiary in fiscal 2022 (6,941 t-CO2 in FY2021).

■C O2 emissions by scope (major group companies: 4)
The CO2 emissions produced by the Kintetsu Group are split into three categories: Scope 1 (direct emissions from fuel use),
Scope 2 (indirect emissions from electricity and other energy usage), and Scope 3 (indirect emissions from supply chains). “Supply
chain” refers to the linked processes take a product from manufacture to reaching the consumer: development, procurement,
manufacture, transport, and sale. By calculating Scope 3 emissions, a company can ascertain the overall impact of its activities. As
shown in the table below, we have been reporting our CO2 emissions (by scope) to CDP since 2010.

Overview ofthe Kintetsu GroupFY2018

Kintetsu Group’s
Value Creation

FY2017

Business Strategies

Unit

Initiatives for Materiality

Energy use (total)

Messages fromthe Top Management

Energy Conservation Act: 12)

FY2018FY2019FY2020

FY2021

Scope 1

59,772

57,88453,28546,88140,141

Scope 2 (location-based)

648,418

551,456

527,586

477,452

436,259

Scope 2 (market-based)

562,257

450,212361,094

323,042

338,209

Scope 365,019132,916

156,454

108,976

104,927

Scope 1 + 2 Total (location-based)

708,190609,340

580,871524,333

476,400

Scope 1 + 2 Total (market-based)

622,029

508,096414,379

369,923

378,350

Corporate Information(Unit: t-CO2)
FY2017* Total CO2 emissions from Kintetsu Railway, Kintetsu Real Estate, Kintetsu Department Store and Kintetsu Miyako Hotels International, accounting for about 80% of those from all
consolidated subsidiaries.

* Location-based emissions are calculated using the common emission coefficient in Japan.
* Market-based emissions are calculated using emissions coefficients from Kansai Electric Power Company, and hence are different from those reported through periodic reporting
pursuant to the Energy Conservation Act.

Kintetsu Group Integrated Report 2022

60

■E
 nergy use and CO2 emissions (consolidated subsidiaries: 70)
Type

Unit

FY2017FY2018FY2019FY2020

FY2021

Electricity

MWh1,229,409

1,196,323

1,189,658

1,117,451

1,098,525

City gas

Thousand m3

21,055

21,186

19,72016,512

17,029Propane

ｔ

740

717

702

579

682

Kerosene

kl

350

303

254

245

168

Fuel oil

kl

7,597

7,629

7,394

6,839

6,117

Gasoline

kl

2,127

1,574

1,758

1,581

1,867

Light oilkl

17,025

17,524

17,264

17,13417,757

Cold water

GJ

151,662

169,089

155,245

148,058

127,347

Total (energy)

GJ

14,473,851

14,171,606

14,005,194

12,917,016

12,748,502

Total (crude oil equivalent)kl

373,425

365,627

361,334

333,259

328,911t-CO2

739,196

630,670

522,760

468,751

500,182

Total (CO2 emissions)* Total emissions from Kintetsu Group Holdings and its consolidated subsidiaries whose energy use is available (FY2021: 70 companies).
* CO2 emissions are calculated using emissions coefficients from Kansai Electric Power Company.

3 Resource-Saving, Recycling and Biodiversity Conservation Initiatives■ Developments in the Kintetsu Group Environmental Targets

Targets

The Kintetsu Group is committed to reducing water
use and the amount of waste.

FY2015 results

FY2021 results

Percentage change

Water

6,057 m3

4,442 m3

-26.7%

General waste

22,916 t

26,401 t

15.2%

Industrial waste

60,728 t

49,795 t-18.0%■ Resource-saving, recycling, biodiversity conservation indicators and targets (KPIs)
Company
Kintetsu Department
Store

61

Indicator

FY2021 results

Target year

① Amount of food loss (compared with FY2019 levels)② Food recycling rat rate

①-26.9%② 19.6%

FY2030① 20% reduction
② 50%

4.4%

FY203050%①-26.5%② 1.3%

FY2030① -40%② Below 1.0%

0.42 %

FY20300.36%

Two facilities

FY2022Seven facilities

ー

FY2024① 10,000 participants② 10,000 participants③ 400 facilities, 150 products

Percentage of eco-friendly packaging materials

Kintetsu Retailing① Food loss volume (compared with FY2018 levels)② Food wastage rate

Kinsho Store

Food wastage rate

Kintetsu Miyako
Hotels International

Number of hotels using foodstuff with sustainability
certificates

KNT-CT Holdings

Tours to raise awareness of environmental friendlinessand natural conservation① Number of participants in green tourism② Number of participants in eco-tourism
 umber of Blue Planet accommodation facilities and③N
products④ Number of J-credit users

Kintetsu Group Integrated Report 2022

Target

④ 6,000 users

Kintetsu
Miyako Hotels
International

Phasing out conventional accommodation amenities(toothbrushes, etc.), forks, knives, straws, etc. tobe replaced by those made of alternative materials(biomass resins, recycled plastics, etc.) and bylightweight alternatives

Kintetsu
Retailing

Using paper coffee cups/straws, wooden spoons andbamboo bagasse bowls at the “Come on met Terrace
Toba” in the Toba Station

Kinsho Store

Phasing out free plastic spoons, straws, etc. to be
replaced by their wooden or paper counterparts while
encouraging customers to make full and effective useof resources■E co and human friendly powder coating
SAKAE CO., LTD. has been manufacturing eco-friendly
products since 2002, giving priority to human welfare and theglobal environment. For example, the company uses solvent(thinner)-free power coating for their products. Powder coating,because of its properties, can be recovered for recycling
purposes, which reduces offensive odors, poisoning risks
during production processes and resource consumption.
Powder coating is used for the company’s mainstay products(approximately 80% of worktables and 90% of tool wagons).
SAKAE CO., LTD. is committed to developing and distributing
eco-friendly products using clean energy and non-toxic
materials, emphasizing human welfare and the global
environment while delivering safe and secure products as acompany supporting the manufacturing industry.

■ Awarded with the “Business Innovation in

Harmony with Nature and Community®”certificate

Six companies including Sanko Real Estate Co., Ltd arejointly building the high-rise condominium “NAGOYA the
TOWER,” which, under construction as of December 2022,
was awarded with the “Business Innovation in Harmony with
Nature and Community®” certificate by the Association for
Business Innovation in Harmony with Nature and Community(hereinafter “ABINC*”).
The certificate recognizes the project’s environmental
consciousness such as its plans for leafy surroundings (withwoodlands and grasslands constituting about 70% of thepremises) and nature observation meetings.
* ABINC-certified businesses: Businesses that are planned and managed
in compliance with the guidelines of the “Business Innovation in Harmony
with Nature and Community®,” meet the land use standards and are
certified through examinations

Overview ofthe Kintetsu Group

Osaka Aquarium Kaiyukan Co., Ltd. has been organizing
an exhibition since December 23, 2021, where plastic waste(plastic bags, food packaging materials, etc.) excreted formore than a month by a green turtle captured in November
2020 by the Iburi Center (Tosashimizu City, Kochi Prefecture)
is exhibited along with the turtle itself. The turtle at first did
not feed at all as plastic waste obstructed its digestive tract.
With drugs administeredthrough injection to activate
the bowel, however, theturtle recovered its health.
The exhibition is expected
to provide viewers with anopportunity to raise their
Plastic waste excreted
environmental awareness.

Kintetsu Group’s
Value Creation

Each company’s key initiatives■ Exhibition of a green turtle and plastic waste

Business Strategies

With the Plastic Resource Circulation Act enforced in
April 2022, the merchandise sales and hotel businesses are
stepping up efforts to reduce plastic waste.

Eco-friendly products: worktables and tool wagons

Initiatives for Materiality■P lastic waste reduction initiatives

Powder coating line

Corporate Information

Kintetsu Department Store Co., Ltd. and Kuradashi jointly
launched the socially beneficial online shopping website“KIKI MARKET” in September 2021 to reduce waste (foodloss, etc.), where products nearing expiration dates are
sold online. Specifically, they include foodstuff, cosmetics,
everyday items and miscellaneous goods.
In addition, the Kintetsu Department Store’s app
disseminates information on products to be discarded,labeling them as “Mottainai (a sense of regret over waste)food” to be sold, thereby minimizing food loss.

Messages fromthe Top Management■ Food loss reduction initiatives

NAGOYA the TOWER landscape (artist’s impression)

Kintetsu Group Integrated Report 2022

62

■ Resource input
Unit

FY2017FY2018FY2019FY2020

FY2021

Office paper

Type

Thousand sheets

155,360

145,870

207,120

184,530

120,920

Clean water

Thousand m3

4,403

4,651

4,470

3,527

3,540

Recycled water

Thousand m3

195

205

192

182

105

Groundwater

Thousand m

3

1,135

1,094

1,084

865

797

Total water(Clean water + Recycled water)

Thousand m3

4,598

4,856

4,662

3,709

3,646

* Total amount of Kintetsu Group Holdings and its consolidated subsidiaries whose resource inputs are available (FY2021: 58 companies).

■ Waste amountType
General waste

FY2017FY2018FY2019FY2020

FY2021

25,639 t

28,434 t

21,858 t

23,039 t

26,401 t

Industrial waste

64,859 t

83,639 t

60,330 t

82,134 t

49,795 t

Total

90,498 t

112,073 t

82,188 t

105,173 t

76,196 t* Total amount of Kintetsu Group Holdings and its consolidated subsidiaries whose waste emissions are available (FY2021: 29 companies for general waste and 26 companies forindustrial waste).

General waste (FY2021)
Total of Kintetsu Group Holdings and its consolidated subsidiaries(29 companies)
Emission amount

Recycled amount

26,401 t

13,587 t

General waste

Industrial waste (FY2021)
Total of Kintetsu Group Holdings and its consolidated subsidiaries(26 companies)
Emission amount
Combustion residue

Recycling

Reuse

Other

26 t

26 t

0t

0t

0t

1,727 t1,617 t

13 t

0t

97 t

Oil

424 t

266 t

150 t

1t

6t

Acid

47 t

21 t

0t

0t

26 t

SludgeAlkaline

5t

4t

1t

0t

0t

Plastic

1,163 t1,022 t

22 t

7t

112 t

Paper

55 t

55 t

1t

0t

0t

Wood

2,146 t1,961 t

61 t

31 t

93 t

TextilesPlant waste
Rubber
Metal

2t

2t

0t

0t

0t

194 t

0t

194 t

0t

0t

2t

2t

0t

0t

0t

4,060 t370 t2,379 t205 t

1,106 tGlass/ceramics

804 t

783 t

19 t

0t

2t

Building waste

38,651 t

31,057 t

7,454 t

74 t

66 t

489 t

489 t

0t

0t

0t

49,795 t

37,674 t

10,294 t

318 t

1,508 t

Other
Total

63

Industrial waste
disposal

Kintetsu Group Integrated Report 2022

Groupcompany

Groupcompany■C limate-change-related risk management
Each company and division identify and evaluate climate change risks, from company-wide to divisional, at various levels whilecritical risks are discussed by the Board of Directors, etc.

Company-wide risk management

Climate-change-related risk management

The Board of Directors, Management Committee,
Group Strategy Committee, etc.

CSR Committee“Risk management rules” are in place, where fundamentals are
set to properly manage business risks faced by Kintetsu Group
Holdings and its consolidated subsidiaries. In accordance with theserules, a risk management body comprising the Board of Directors
and the members of Management and Group Strategy Committees
identifies and manages business risks (climate change risks, etc.) for
prevention purposes, with appropriate countermeasures developed
and put into practice to minimize damage should such risksmaterialize. At the same time, the Corporate Strategy Division and theAdministrative General Affairs Division jointly collect risk informationfrom other departments and group companies to consolidate
potential risks, which are ranked by degree of seriousness from acompany-wide perspective.
Of risk factors, those involving critical administrative issues are
discussed at Management Committee, etc. to set directions anddevelop measures for further discussion and approval by the Boardof Directors.

The CSR Committee comprising the Kintetsu Group Holdingspresident and executives and major group companies’ executives
manages CSR-related issues (ESG including climate change
strategies) and finds solutions from a long-term perspective
while setting climate change policies and targets, overseeing
their implementation and evaluating the risks and opportunities
involved. Likewise, major group companies evaluate their own
climate change risks and opportunities, with the results andcountermeasures reported to, and evaluated and overseen by
the CSR Committee and its members.
Countermeasures exceeding a certain amount, meanwhile,
are reviewed by the Board of Directors, along with those featuring
energy conservation, which contributes to climate change
mitigation. An appropriate management system is thus in place,with the CSR Committee and the Board of Directors overseeing
the whole procedure.

Overview ofthe Kintetsu Group
Kintetsu Group’s
Value Creation

Group
company

Business Strategies

CSR Committee
Chairman: Kintetsu Group Holdings president
Vice-chairman: Kintetsu Group Holdings executives incharge of CSR
Committee members: Kintetsu Group Holdings
executives and major group companies’ executives incharge of CSR
Secretariat: General affairs department

Initiatives for Materiality

Kintetsu Group Holdings Co., Ltd.
Board of Directors

We have established our CSR Committee as a way ofdeveloping relationships of trust with all of stakeholders—
including customers, regional communities, shareholders,business partners, and employees—and to address societal
issues and raise corporate value in the long term.
The CSR Committee, headed by the Kintetsu Group
Holdings president, comprises the Kintetsu Group Holdings
executives and major group companies’ executives incharge of CSR, with regular meetings held about twice ayear. The committee’s role includes setting policies andtargets for climate change and other issues related toenvironmental protection, overseeing their implementation,
evaluating the risks and opportunities involved and reviewing
countermeasures, all designed to contribute to realizing a“decarbonized, recycling-oriented society,” a key theme insustainability.
The Board of Directors, meanwhile, reviews critical issues
such as business opportunities and risks associated with theimpact of climate change. In addition, the boards of directors
at Kintetsu Railway Co., Ltd. and other group companies
discuss other critical issues, including investment to build arobust infrastructure to address climate change risks.

Corporate Information■ Climate-change-related governance

Messages fromthe Top Management

4 Information Disclosure Related to TCFD

■ Indicators and targets
With the Kintetsu Group Environmental Targets for fiscal 2021 to 2030 in place, the Kintetsu Group is stepping up efforts to
reduce its energy use and CO2 emissions (see Page 57).

Kintetsu Group Integrated Report 2022

64

■ Climate strategies (railway business)
A scenario analysis was conducted for the railway business, the Kintetsu Group’s core business, based on information available
as of the summer of 2022.
Operating revenue(FY2021)CO2 emissions(FY2021)

Scenario analysis procedures

1 Risk and opportunity identification

Kintetsu
Railway

16.1%

Facilities

2 World view reconsideration

35.8%
Operating revenue
691.512 billion yen

CO2 emissions
487,770 t-CO2

Kintetsu
Railway

3 Business impact assessment

54.5%

83.9%
9.7%

4 Future measures

Buses, etc.

① Risk and opportunity identification (railway business)

Transition risks

Risk descriptions
Policies, Increased burden due to tax reforms (carbon tax, etc.)
laws and Increased energy cost due to policies promoting renewable
regulations energy and energy saving (renewable energy surcharge, etc.)
Increased energy cost due to higher crude oil prices
Unstable power supply due to a change in the energy mix(increased use of renewable energy)MarketIncreased material cost due to the environmental cost passed
on by suppliers
Technology

Reputation

RatingRisk management measures

High
High
High

⨋
⨋
⨋
⨋

MediumMediumIncreased cost of introducing new technology (low-carbon
technology, energy-saving technology, etc.)

MediumLoss of reputation with customers due to delay in addressing
environmental issues

MediumDifficulties in financing due to loss of reputation with investors

Medium

⨋
⨋
⨋

⨋

⨋
⨋
⨋
⨋

Physical risks

Increased damage caused by storm and flood
Acute risks(increasingly
severeDisruption of power supply from utilities
disaster)

Chronic risks Decreased operating revenue due to hot weather (with more

Opportunity descriptions

Opportunities

MediumShortage of commodities due to distribution disruption caused
Mediumby suppliers(temperaturecustomers staying at home and inbound tourists decreasing)rises)

MediumResource
efficiency
Energysources

Decreased energy cost due to optimized energy procurement

⨋

⨋

⨋

⨋

⨋

⨋

High

Policies emphasizing public transportation systems designed
for compact, clean urban development to stimulate demand(accelerated shift to smart cities and MaaS)

High

⨋

⨋
⨋

MediumVitalization of the carbon market

MediumIncreased customer confidence through construction toprevent damage caused by storm and flood

MediumKintetsu Group Integrated Report 2022⨋⨋

Increased green investment

Optimization of facility requirements and renewal plans
Early detection and repair of failures
Detailed examination of new technology that takes into
account cost and performance
Enhanced promotion of the environmental advantage ofrailways
Provision of safe, punctual transportation services
Disclosure of information on progress on environmental targets
Information disclosure related to TCFD and response to CDP
Reinforcement construction to be prepared for large-scaledisasterDevelopment of railway facilities monitoring systems (forprecipitation and river levels)
Diversification of electricity suppliers (including private power
generation and multiple power companies)
Double-track construction to bolster the supply chain of
essential commodities, which impacts train service operations
Promotion of measures to encourage outings by developing
tourism and providing attractive transportation services
Opportunity exploitation measures⨋

MediumIncreased demand for railway transportation due to increased
Products &environmental awareness of consumers (increasing modal
services
shift from automobiles to trains)

Resilience⨋

RatingDevelopment of energy-saving technology to reduce electricity
High
consumption
Policies promoting renewable energy and energy saving
MediumMarket65

High

Introduction of energy-saving railcars and facilities
Optimal combination of energy sources
Proactive approach to subsidy systems
Introduction of large-scale storage batteries

⨋
⨋

⨋
⨋

Introduction of energy-saving railcars and facilities
Proactive approach to subsidy systems
Mobilization of large-scale storage batteries and modificationof the company’s transmission systems
Introduction of renewable energy facilities
Enhanced communication of the environmental advantage ofrailways
Introduction and promotion of energy-saving railcars
Expansion of secondary transportation directly linked with railways
Development of cities along the railway lines in collaboration
with local communities
Policy-based promotion of the use of railways
Information disclosure related to TCFD
Participation in the carbon market, leveraging theenvironmental advantage of railways
Reinforcement construction to be prepared for large-scale disaster
Quick restoration/reconstruction from disaster (quick resumptionof services)Positive impact
Negative impact

2°C scenario world in 2050

(2°C scenario)• With more stringent measures in place against global warming,

global temperature rise by the end of the century will be limited to
2°C above pre-industrial levels.

Low-carbon initiatives help renewable energy andsmart cities develop further.
Customers●

CitiesConsumers’ environmental
awareness grows

ClimateOverview ofthe Kintetsu GroupWe analyzed impacts expected in fiscal 2030 and fiscal 2050 based on “2°C scenario” and “4°C scenario,” both of which predict
temperature rises.

Messages fromthe Top Management② World view reconsideration (railway business)

EnergyNew technology (low-carbon/energy-saving
technology) develops● Energy mix changes● Energy procurement options expand●

Increased demand for
public transportation
Increased energy cost

Disasters are sporadic,
with delays limited

Railway business●Climate change causes more devastating,frequent disaster

Increased
corporate value

Financial market

More support available
Policies emphasizing public
transportation●●

Government●●●

Green investment grows
The carbon market gains momentum

Business Strategies

Compact, clean urban development gains
momentum
Smart cities and MaaS develop

Tax reforms (carbon tax, etc.)
Policies promoting renewable energy and energy saving
Policies are in place, encouraging the use of public
transportation from the perspective of decarbonization

4°C scenario world in 2050

(4°C scenario)• With more stringent measures not in place against global warming,

the average global temperature by the end of the century will be
about 4°C above pre-industrial levels.

Low-carbon initiatives lag, resulting in greater
physical risks
Customers●●

CitiesConsumers’ environmental awareness remains unchanged
Hot weather keeps customers at home (fewer outingsand inbound tourists)

ClimateDecreased demand forrailway transportation●●

Expansion-oriented urban development
continues
Smart cities and MaaS develop to alesser extent

Energy●●Renewable energy develops to a lesser
extentCrude oil prices increase, with lessresources available●

Decreased demand for
public transportation
Increased energy cost

Disasters are prevalent,with delays increasing

Railway businessClimate change causes more devastating,frequent disaster (to a greater extent)

Unchanged
corporate value

Financial market

Fewer support available
Policies emphasizing
road transportation

Government●●●

Initiatives for Materiality●●

Corporate Information●

Kintetsu Group’s
Value Creation

Opting for railways as ameans of transportation

Green investment remains unchanged

Carbon tax is yet to be introduced
Few policies promoting renewable energy and energy saving
Policies are in place to encourage the use of public
transportation from the perspective of decarbonization, but
to a lesser extent

Kintetsu Group Integrated Report 2022

66

③ Business impact assessment (railway business)
According to the 2°C scenario and the 4°C scenario, possible impacts on the railway business were evaluated for items whose
risks are rated “High.” Specifically, the costs of the impacts on its business in 2030 and 2050 were calculated, based on data
forecasted and provided by IEA and the Japanese Government.

Prerequisites for calculating the costs of the impacts
2030

2050

Parameters
4°C

2°C

4°C

100$/t-CO2

ー

160$/t-CO2ー

IEA “World Energy Outlook 2021” (October 2021)

Percentage rise ofrenewable energy
surcharge (comparedwith 2020 levels)

100%

50%

ー

ー

“2013 Report on Feasibility of Promoting Renewable
Energy Towards 2050,” The Ministry of the Environment(January 2015)

Percentage rise of crude
oil prices (compared with2020 levels)

33%

83%

19%

110%

IEA “World Energy Outlook 2021” (October 2021)

About
1.5 times

About
2 timesAbout
2 timesAbout
4 times“Review of Water Control Technology in Light of Climate
Change,” The Ministry of Land, Infrastructure, Transport
and Tourism (April 2021)

Transition risks

Unit carbon pricePhysical risks

Source2°C

Flood occurrence
frequency

Additional costs of the impacts (annual)
2030

2050

Physical risks

Transition risks

Item

Remarks
2°C

4°C

2°C

4°C

+5 billion yen

ー

*

ー

Increased renewableenergy surcharge+2 billion yen+1 billion yen

ーー

Increased crude oil
prices+0.5 billion yen+3 billion yen+0.3 billion yen+4 billion yen

Amount of damage tofacilities+0.15 billion yen +0.3 billion yen+0.3 billion yen+0.9 billion yen

Decreased revenue
due to suspended
operations+0.2 billion yen+0.4 billion yen+1.2 billion yen

Burden of the carbon
tax* While the goal is to reach net zero CO2 emissions in 2050,
failure to do so will result in tax burdens.

Increased electric bill

Calculated, taking into account Japan’s future power
generation mix in addition to higher crude oil prices

Impacts of storm andflood+0.4 billion yen

Calculated, taking into account damage to facilities causedby storm and flood (averaged over the past decade) andthe resulting loss of revenue④ Measures to be taken (railway business)
Potential impacts of climate change on the railway business were analyzed, based on the 2°C scenario and the 4°C scenario,
both provided by specialized institutions, where “tax reforms,” “increased energy cost” and “increasingly severe disaster” wereidentified as serious risks to the railway business.
The 4°C scenario forecasts an increase in damage to railway facilities due to natural disaster, resulting in restoration/reconstruction
costs, and decreased revenue caused by suspended operations.
The 2°C scenario, meanwhile, forecasts cost increases brought on by the introduction of the carbon tax and renewable energy,
while a shift from other transportation modes can be expected, with the environmental advantage of railways maintained.
The railway business will continue to promote energy saving, reduce CO2 emissions, put protection measures in place tobe prepared for large-scale disaster, and introduce new types of energy-efficient railcars, thereby minimizing risks, maximizing
opportunities and contributing to realizing a decarbonized, recycling-oriented society.

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Kintetsu Group Integrated Report 2022

■ Climate strategies (real estate, international logistics, merchandise sales, hotel and travel

Reputation

Chronic risks

HighInternational Medium
logistics

Risk descriptions

Business
Ratingcategory
Merchandise High
sales
Merchandise
sales
High
Hotels•Decreased customer traffic due to hot weather, etc.
Food poisoning risks, etc.
Employees’ health management risks
Decreased desire to travel and destination changes
due to hot weather, etc.

Temporary closing of stores to ensure the safety ofcustomers and employees, following suspension of
Acute risks public transport operations

HotelsMediumTravel agency

High

⨋

⨋

⨋

Descriptions of opportunities and advantages

Business
category⨋

Real estate

•

⨋

⨋

Switching to SAFs and promoting carbon offset
International
Products & in partnership with carriers to improve reputation
logistics
among
customers
services• Increased demand for protection against heat and cold
Merchandise• Sales of disaster kitssales
• Increased demand for eco-friendly products and services
Hotels• Increased demand for eco-friendly products and services
Travel agency• Resort hotels available for a longer period due toHotelsglobal warming
Travel agency• Opening stores near or adjacent to stations, or atconvenient locations such as station premises, each
Hotelsof which are not affected so much by weather
Developing markets in response to changing lifestyles, Merchandise
with customers’ awareness of sustainability in mind
sales

•

Offering purchasing options that allow customers to
buy what they want without visiting stores

Merchandise
sales

•

Developing products by leveraging areas andmethods that are not affected by climate change

Travel agency

Promoting energy-saving measures such as energy-saving
equipment to be installed at facilities and stores
Improving environmental performance by replacing
lighting in common areas with their LED counterparts andby upgrading facilities
Reviewing possibilities of complying with ZEB requirements
for new construction and of leveraging renewable energy
Opting for decarbonized products (ZEH, etc.) whenbuilding houses
Planning and offering tours with less CO2 emissions
Providing information on emissions from air, sea andtruck transportation
Building relationships with carriers that promotedecarbonization initiatives
Participating in SAF programs, etc.

⨋
⨋

⨋

⨋

⨋

Upgrading the EC shopping site
Strict food hygiene practices
Improving employees’ health management andoptimizing working hours
Tour development tailor-made to tourist seasons anddestination changes (travel package development,
factoring in ecological changes and new ocean/air routes)
Developing unique travel packages (themed tours, etc.)
and those featuring environmental sustainability
Developing crisis management manuals
Collecting and communicating information using safety
confirmation systems
Developing measures against disaster (flooding, etc.) in
partnership with the relevant authorities and business partners
Developing a reliable logistics network by opting foralternative facilities and routes (applicable to warehousesof the forwarding business)
Opportunity capture measures⨋

Increased needs for properties with excellent
environmental performance (low-carbon
construction, etc.)

Promoting energy-saving measures such as energy-saving
equipment to be installed at facilities and stores
Introducing energy-saving facilities

Risk management measures⨋⨋

International Medium
to large-scale natural disaster such as typhoon andlogistics
heavy rain and the resulting suspension of operations

Opportunities⨋⨋

Merchandise
sales(increasingly
severeDamage, including flood damage, to facilities due
disaster)

Resilience

⨋

⨋

•

Market⨋⨋Decreased sales due to failure to provide low-GHG
transportation modes(temperaturerises)

Physical risks

Real estate

TravelHighagencyInternational Medium
logistics•⨋⨋

Regulations to encourage the use of transportation
and accommodation with less CO2 emissions
Increased cost due to more stringent CO2 emission
reporting requirements•⨋

Promoting properties with excellent environmental performance

⨋
⨋

⨋
⨋
⨋

⨋

⨋

⨋

⨋

⨋
⨋
⨋
⨋
⨋

Kintetsu Group’s
Value Creation

Policies,
laws andregulations Increased construction cost due to more stringent
energy efficiency standards for new construction andrenovation, ZEB requirements for newly constructedbuildings and ZEH requirements for newly
constructed condominiums and houses

Risk management measures⨋

Building super-insulated houses
Adopting products with excellent environmental performance (ZEH, etc.)
Improving environmental performance by replacing lighting in existing
facilities with their LED counterparts and by upgrading facilities
Reviewing possibilities of complying with ZEB requirements for
new construction and of leveraging renewable energy
Participating in SAF programs
Scrutinizing credit quality and strategically participating in offset programsof business partners (air carriers) as well as in their SAF programs
Setting up special corners
Expanding overall sales through external sales and EC shopping sites
Preventing stockout situations

Business Strategies

Increased energy cost due to policies promoting
renewable energy and energy saving (renewableenergy surcharge, etc.)

RatingReal estateHigh
Merchandise
sales
High
HotelsInternational
Mediumlogistics
Real estate
Merchandise
High
sales
Hotels

Initiatives for Materiality

Transition risks

Increased cost due to the carbon tax

Business
category

Corporate Information

Risk descriptions

Overview ofthe Kintetsu Group

Risks and opportunities

Messages fromthe Top Management

agency businesses)

Planning and offering tours with less CO2 emissions
Offering new ways to enjoy resort life and developing new travel
packages
Strengthening partnerships among the Kintetsu group companies
and increasing the convenience and amenity of access to hotels
Opening stores at convenient locations through enhanced
partnerships among the Kintetsu group companies
Offering eco-friendly products and services
Increasing the number of mobile supermarkets
Expanding EC sales
Increasing the number of stores featuring online supermarkets
Developing products using IT such as VR to provide virtual
experience

Kintetsu Group Integrated Report 2022

68

Materiality

Ensuring Safety and Pursuing Peace of Mind

1 Initiatives in the railway business (Kintetsu Railway)■ Ensuring safety and pursuing peace of mind for transportation
To ensure that all executives and other employees are acutely aware of the need for safety and that they incorporate that into
their respective roles, we have formulated our Safety Policy. We also set safety targets and safety-focused measures for each fiscal
year, and the entire company is coming together to secure safety in transportation. In addition, in recent years the threat to safety
in the transportation industry posed by natural disasters has grown, and so we have formulated a Fundamental Policy on Disaster
Preparedness to act as a company-wide policy on how to prepare for and react to natural disasters.

Safety Policy

Fundamental Policy on Disaster Preparedness

In line with the main points of operational safety standards,
we will all work together with the aim of further raisingsafety levels.

1.	We will learn the lessons of past natural disasters, andwork to prevent, prepare, and mitigate the effects ofdisasters.

Main points of our operational safety standards:

2.	When responding to natural disasters, we will act toprioritize the safety of customers and employees above
all else.

1.	Securing safety is the duty of transportation.
2.	Compliance with official regulations is the foundation ofsafety.
3.	Correct working procedures are a requisite for safety.

3.	
When recovering after natural disasters, we will aim to
restore operations as quickly as possible and work toshare information in an appropriate and timely manner,
but only after doing all that is necessary to secure safety.

■ Safety management system■N umber of accidents involving railway operations

With the aim of improving safety for our transportation
services, we have established safety management regulations,which are a clear indication of our basic policy for ensuringsafety. We have also set safety supervisors who oversee
safety for railways and cable cars, and also defined the roles
and powers of safety reps who ensure safety in the different
fields that make up our railway and cable car businesses.

Changes in number of accidents in the past five years(Number)

When it meets, the Safety Promotion Committee formulates
and reviews important safety measures, which are based on
the Safety Policy. Our Railway Accident/Disaster Prevention
Subcommittee, meanwhile, conducts comprehensive discussions
around accidents, natural disasters, and other related topics, andcomes up with effective, appropriate countermeasures.

Internal audits
As part of our transport safety management, once a year we
carry out an internal audit, and work continuously to improvesafety.

Worksite investigation patrols
The president, safety supervisors, and others involvedin the management of our railway departments, undertake
inspection tours of the worksites that support railway safety
as and when needed. As well as checking the progress ofworksite initiatives, they are able to exchange ideas about
how to secure transport safety, and verify how safety is being
managed on the ground.

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Kintetsu Group Integrated Report 2022

Collision with person on tracks

Serious incidents

1

50
40
30
20
10

Meetings of the Safety Promotion Committee, etc.

Collision at crossing

60

0

25

12

26

26

33

2017

2018

22

21
10

2019

21

26

2020

2021

(FY)

* In the past five years, there have been no accidents involving train-on-train collisions,fires on trains, or derailments.

Serious incident
Time and date: around 18:50 on November 23 (Tue.), 2021
Location:
Between Kuwana Station and Ise-Asahi Station on the Nagoya Line
Details:
While traveling between Kuwana Station and Ise-Asahi Station, adoor on the lefthand side of the backmost car (car no. 1) of a limited
express train was discovered to be around 1 centimeter open by
the train guard, who manually closed the door and locked it.
Cause:The shaft of the connecting part that connected the opening/closing rod in the aforementioned door to the door had comeaway from the door, so it was unable to hold the door closed,
meaning the door opened as the train was moving.
Countermeasures:
We inspected all folding doors and made additional repairs to thewelded parts. Also, we have taken on board the findings of theJapan Transport Safety Board’s serious incident investigation
report (published on December 1, 2022), we have been welding
the rotating shafts that caused the incident, and strengthening
our checks, and will endeavor to ensure it cannot happen again.

FY2021 results

Target year

Target0Every fiscal year

080

Every fiscal year

Fewer than the previous fiscal year
(billion yen)

FY2018

Approx. 17

Approx. 18 Approx. 19 Approx. 22

21.1

24.2

FY201924.2

FY2020

FY2021

FY2022

Approx. 9

Approx. 13 Approx. 20 Approx. 26 Approx. 27

26.5

9.3

FY202318.9

FY202425.0

FY202530.5

30.6

Large-scale earthquakes or natural disasters—made worse
by climate change—are major risks, and as such we work
proactively on measures to mitigate damage. For instance, forthe pillars that hold up our elevated tracks, we had completed
earthquake-proofing for 95% of the pillars by the end of fiscal
2021, and we are working to complete work on them all infiscal 2024. As for tunnels, in the case of the shield tunnels thatare being used on the Namba Line, we are making progresswith anti-seismic reinforcement and waterproofing measures,and work on the section between Osaka-Namba Station andKintetsu-Nippombashi Station is scheduled to be completed
at the end of fiscal 2026. In addition to these projects, we arecarrying out anti-seismic reinforcement at stations, elevatedtracks, and other locations. We are also pressing forward withefforts to strengthen railway embankments, and raise importantequipment and facilities to prevent damage from water ingress.
In some areas, we have installed high-capacity batteries sothat even if a large-scale earthquake were to cause widespread
power outages, trains that lose power in tunnels or similar canmove to the nearest station, to ensure passenger safety.

Kintetsu Group’s
Value Creation■D isaster prevention measures

Anti-seismic reinforcement work on
Namba Tunnel

High-capacity batteries

Main investment plans for FY2023–2025

Disaster prevention measures
Capital expenditure: approx. ¥12 billion○A nti-seismic reinforcement work for stations and elevatedtracks○A nti-seismic reinforcement work and water ingress

prevention for shield tunnels○C ountermeasures against bridge scouring, water ingress

prevention for electrical equipment, etc.

■ Equipment safety measures
For railway crossings, we have partnered with the relevant
authorities and brought in grade separation, consolidated
crossings, installed pedestrian walkways, and undertaken othermeasures. Moreover, we have been moving forward with technicaldevelopment to allow us to detect if a vehicle or pedestrian getsstuck at a railway crossing. In fiscal 2018, we introduced detection
equipment with horizontal laser sensors that is able to detect
items within a larger area. We have been updating our railway
crossing warning lights so that it is possible to see if they are litor flashing from any direction, helping to prevent accidents before
they happen (630 locations updated as of the end of fiscal 2021).
Since November 2021, we have been remotely monitoring thesituation at railway crossings and transformers using LTE circuits
and internal networks connected to security cameras. We are also
working on how we can quickly discover and identify the causes ofaccidents and breakdowns, raise the efficiency of recovery efforts,

Overview ofthe Kintetsu GroupFY2017

Business Strategies

Capital investment relating tosafety and peace of mind
(Ref.) Kintetsu Railway capital
expenditure

Forecast

and prevent any spread of accidents. In order to strengthen our
in-car security measures, we are moving ahead with installingsecurity cameras in all rolling stock. We are also expanding ourinstallation of communications equipment in train cars that include
an intercom.
Added to all ofthese efforts, we
are working daily tocheck and develop
our rolling stock,electrical equipment,
railway lines, andstructures—we strive
every day toward
transport safety.

Initiatives for Materiality

Indicator

Results

Corporate Information

Indicator
Number of accidents involving
railway operations for which thecompany was responsible
Number of accidents involving
railway operations andtransportation disruptions

Messages fromthe Top Management■ Safety and peace of mind indicators and targets (KPIs)

Grade separation work between Kishi Station andTondabayashi Station on the Nagano Line

Kintetsu Group Integrated Report 2022

70

Main investment plans for FY2023–2025

Placement of “escort zones” at railway crossings

Ensuring infrastructure remains soundTaking on board an accident that occurred at
Koriyama No. 2 Crossing on our Kashihara Line in April
2022, the city of Yamatokoriyama put in place a “escortzone” to offer guidance for visually impaired pedestrians
at the railway crossing. Kintetsu Railway Co., Ltd. has
also installed obstruction detection equipment that uses
horizontal lasers, and is working with the local authorities
to implement safety measures.

Capital expenditure: approx. ¥24 billion○S trengthening and continuation of work to bolster andrepair bridges, tunnels, etc.
○R
 eplacement of railway infrastructure such as tracks,electrical equipment, station equipment, operation
management systems, etc.
Updating to general rolling stock and in-car security measure
Capital expenditure: approx. ¥18 billion○U pdating to dilapidated general rolling stock○ In-car security measures:

・Promoting placement of security cameras in all train cars
・Expanded installation of communications equipment in
train cars that include an intercom, etc.

Koriyama No. 2 Crossing on our Kashihara Line■A
 ccessible infrastructure
As well as making progress with initiatives such as removing steps from stations between the ticket gates and the platforms, andmaking movement smoother by installing elevators and slopes, we are installing equipment that provides train information or station
guidance in both written and audio forms.
Stations with elevators

Stations with escalators

Stations with wheelchair-accessible toilets(of which, multipurpose)

Stations with guidance chimes

128

81

164 (149)

130* Of our 280 stations, 251 allow passengers to travel from outside the station to the platform without using steps
Main investment plans for FY2023–2025

Accessible infrastructure○ Installation of movable platform edge gates

・During fiscal 2023, installation of movable platform edge

gates to cater to trains with different door placement or
number of doors
・Placement will begin in order at stations with morethan 100,000 users (plans to put in place a total of fiveplatforms’ worth between fiscal 2023 and 2025)○R eduction of the gap between platform and train

・Promotion of reductions to the gap between platform

and train by work to raise platforms and changes to newrolling stock to lower their floors

Capital expenditure: approx. ¥6 billion○A cceleration of efforts to make facilities more accessible

・Each train car to have one

dedicated wheelchair spot(for general rolling stock)・Installation of train car
guidance displays
・Replacement of steps withelevators and slopes
・Introduction ofFitted movable platform edge gates atmultipurpose toilets at
Osaka-Abenobashi Station
stations, etc.

■D rills and training
As well as the accident/disaster recovery drills we carry out
with the help of police and fire departments, we also conduct
drills that imagine tsunamis, fires on subway trains, injuries
on train carriages, terrorist attacks, and other potential crises.
Rather than let memories of past accidents and breakdowns
fade away, in 2017 we opened an archive that includes
artifacts from the time of past accidents so that they cannot
be forgotten. We are gradually working to expand the archive’scontents, and we use these as part of internal training.

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Kintetsu Group Integrated Report 2022

Accident/disaster recovery drill

■F ood quality and safety management

Home delivery andemergency supplies box

initiatives

Kintetsu Department Store Co., Ltd. puts together productquality labeling manuals and food hygiene management
manuals, and by periodically distributing reminders orsimilar to employees, it is working to improve quality andhygiene management. In particular, KURASHI KAGAKULABORATORY CO., LTD., part of the Kintetsu Group,
conducts regular quality checks, and in addition to strictly
managing food safety and security, it holds food hygiene
seminars for food-related workers. Also, through cooperation
with business partners, Kintetsu Department Store
periodically surveys product quality labeling, and conducts
appropriate educational activities about labeling, such as
employee training.
Kintetsu Miyako Hotels International, Inc. has introduced
the Miyako Green Guarantee—established in 2020 as a new,original standard for hygiene and disinfection—at all of its
hotels. It is also working hard to ensure thorough compliancewith HACCP, a way of managing food safety hazards in foodproduction.

■ Agreement to provide accommodation

Overview ofthe Kintetsu Groupduring a disaster

In July 2021, KNT-CT Holdings Co., Ltd. signed anagreement with East Nippon Expressway Company Limited(NEXCO East) to work together to secure accommodation
facilities during a disaster. Should a natural disaster—such as
an earthquake or heavy snowfall—damage the expressway
network, this will allow the two companies to smoothly andquickly find accommodation for stranded drivers or emergency
relief workers, and secure means of transport to take themfrom the scene of the disaster to those accommodation
facilities. This initiative will help raise the quality of NEXCO
East’s business continuity planning (BCP), part of its crisis
management; KNT-CT Holdings Group endorses this effort
and will play its part.
Example flow
① Request to secure

NEXCO East
⑥ Dispatchedaccommodation

Disaster siteor relief
worker site

KNT-CT
Holdings④ Answer to request⑤ Reservations ataccommodation
facilities

emergency
reliefworkers

Quality check by KURASHI KAGAKU LABORATORY

Kintetsu Group’s
Value Creation

In February 2022, Kintetsu Real Estate Co., Ltd. developed adedicated box that brings together a box for delivery companies
to deposit goods in, and storage for emergency supplies, to beinstalled next to the front door of each condominium. As online
shopping becomes more common, there are more and more
people for whom using home delivery services have beennormalized and who want its greater convenience. There arealso more people who wish to “shelter in place” during disasters
such as earthquakes or rainstorms but do not want to risk the
spread of infectious diseases at evacuation points, so there is a
growing awareness of the desire to secure a place in theirbuilding where they can store emergency supplies—supplies
that are catered to their household’s requirements and separate
to communal supplies. To meet the needs of such residents,
Kintetsu Real Estate has developed adedicated box that provides both
functions—a space for delivery drivers todeposit packages, and storage for
emergency supplies—which can beinstalled next to each condominium’s front
door. The company’s goal is to have 100%of all condominiums have emergency
supplies placed and ready.

Business Strategies

Bus stop that has been improved with expansion
work

boxes for new condominiums

Initiatives for Materiality

Each of the bus companies is implementing initiatives thatlead to safe bus operations, including safe driving training,
drills for how to react during crises, and introducing systems
that can respond if they detect an abnormality with the driver.
Nara Kotsu Bus Lines Co., Ltd. buses that pull up at bus
stops next to pedestrian crossings or intersections create blind
spots along their sides, and so these can lead to traffic accidents
so we are working to remove these dangerous bus stops. Asof March 2021, there were 43 bus stops that were deemed
dangerous and with the cooperation of local authorities, police,
and residents, we have been moving forward with works tomove or expand these stops so that as of the end of March
2022, there were only 5 such stops remaining.

■ Dedicated home delivery and emergency

Corporate Information■ Bus service safety measures

Messages fromthe Top Management

2 Initiatives in non-railway businesses② Check for③ Communicate
about empty
rooms

empty rooms⑦ Accommodation for emergency
relief workers, etc.

Hotel

Kintetsu Group Integrated Report 2022

72

Materiality

Fostering Diverse Human Resources andSupporting Their Activities

1 Human Rights■ Fundamental Policy on Human Rights of the Kintetsu Group(Created November 2022)
The Kintetsu Group aims to contribute to the realization of a prosperous society founded upon co-creation through the group’sbusiness activities. To that end, it is important for every employee of the group to be aware of the impact that our actions have onsociety in the course of doing business. The Fundamental Policy on Human Rights of the Kintetsu Group has been establishedbased on the United Nations Guiding Principles on Business and Human Rights and other international conventions on humanrights to promote respect for the human rights of all of the people involved in our business activities.
1. Respect for Human Rights
The Kintetsu Group respects the human rights of our customers, local residents, business partners, employees, and otherstakeholders, and does not discriminate against anyone based on their race, nationality, religion, gender, sexual orientation,
gender identity, disability, or social status. We also address important human rights and labor practice issues such as
preventing harassment, limiting excessive working hours, and promoting occupational health and safety.
2. Human Rights Due Diligence
The Kintetsu Group strives to continuously implement human rights due diligence to end or avoid adverse effects on humanrights through our business activities.
(1) Dialogue with Stakeholders
The Kintetsu Group engages in dialogue with our stakeholders regarding impacts on human rights and strives to improveefforts that involve respect for human rights.
(2) Education and Training
The Kintetsu Group provides relevant education and training to ensure that our employees understand and comply with ourhuman rights policy.
(3) Remedies and Corrections
If the Kintetsu Group either directly or indirectly caused an adverse effect on human rights, we will take appropriate
measures to remedy the situation and implement corrections.
(4) Information Disclosure
The Kintetsu Group will disclose information concerning our human rights-related efforts as appropriate through our
website, integrated reports, etc.
3. Scope of Application
This policy applies to all Kintetsu Group officers and employees. We request that everyone in our supply chain also understandthis policy and together we shall promote respect for human rights.

■ Kintetsu Group Human Rights Promotion Framework
The CSR Committee, chaired by the president of Kintetsu Group
Holdings, meets approximately twice a year, setting our basic policy
toward human rights, and deliberates on legal and ethical matters. The
individual companies in the Kintetsu Group work to promote educationand training to prevent and mitigate human rights risks and respond
appropriately if risks occur based on their management framework,
which includes the establishment of a legal and ethical affairs committee.
With regard to human rights and social integration issues, the
Human Rights & Social Integration Promotion Committee, chaired byour corporate officer responsible for human resources, meets oncea year to formulate annual targets and promote awareness-raising
activities. In addition, the major companies of the Kintetsu Group, ourLabor Union, and the Kintetsu Railway Labor Union are also part of thiscommittee to facilitate systematic efforts with labor and management
working together.

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Kintetsu Group Integrated Report 2022

CSR Committee
Chairman: KGH president
Members: KGH corporate officers
Responsible officers of major
Kintetsu Group companies

・Establishment of basic policy onhuman rights

・Deliberation on legal and ethicalmatters

・Quick response as contact point for

Legal and ethicalconsultation
helpdesk

Kintetsu Group companies

reporting upon the occurrence of humanrights risks

Based on individual companies’
management framework, including theestablishment of a Legal & Ethical Affairs
Committee:
・Implementation of education and training
to prevent and mitigate human rights risks
・Responding upon the occurrence ofhuman rights risks
・Implementation of remedies andcorrections* Kintetsu Group Holdings = KGH

■ Conducting Human Rights Due Diligence

In addition to the Kintetsu Group collaborating with industry groups and the government and holding dialogues with disability
organizations, Kintetsu Railway Co., Ltd. is a member of the Corporate Federation for Dowa and Human Rights Issue, Osaka.
Through these efforts, we are identifying human rights risks and striving to improve efforts that involve respect for human rights.

(2) E fforts to Prevent and Mitigate Human Rights
Risks through Education and Training

Messages fromthe Top Management(1) Identifying Human Rights Risks through Dialogues with Stakeholders

for Kintetsu Group Holdings and Kintetsu Railway Co., Ltd.)
Topics in the “Learn all about compliance!” class (2022)
Class 1

“Human Rights News” Topics

What kind of speech and conduct are consideredbullying?

First-half

Human rights on the internet

Secondhalf

Looking at COVID-19 discrimination

First-halfLooking at human rights issues(Human rights of children, the elderly, people
with disabilities, and women)

Secondhalf

Looking at human rights from the Paralympics

First-half

Prohibiting harassment—creating an environment
in which everyone can work positively

FY2020Class 2

When passionate instruction goes too far

Class 3

If a legal or compliance violation occurs in one’s private
timeClass 4Things that should be considered by those giving andtaking advice

Class 5

Someone is observing what you say and do ①

Class 6

Someone is observing what you say and do ②

FY2021

FY2022③ Exerting influence on the supply chain
Formulate conduct guidelines for the suppliers of materials and other business partners that prohibit child labor and stipulate
compliance, and promote respect for human rights in the supply chain (Kintetsu Railway Co., Ltd., Kintetsu World Express, Inc. andother companies)(3) Remedies and corrections for when a negative impact on human rights occurs
A job seeker harassment helpdesk and legal and ethics helpdesk that doubles as an internal whistleblower hotline have been
established at Kintetsu Group Holdings and outside the company (at a law office) (see p. 92). These are part of a system for responding
quickly to human rights risks when they occur. Plus, there is a CSR Committee and committees set up at individual companies.

Business Strategies

for the Kintetsu Group)・“Human Rights News” distribution (once every six months

Initiatives for Materiality② Intranet-based education and information distribution
・“Learn all about compliance!” class (held once a month

Kintetsu Group’s
Value Creation

Human rights training seminar being given by an outside lecturer

Corporate Information(Held once every two years for the Kintetsu Group officers
and managers)
・Training to prevent harassment in recruitment activities(Held once a year for recruiters and managers in the
Kintetsu Group)・Other types of training, such as e-learning, held according
to the situations at individual companies

Overview ofthe Kintetsu Group① Training
・Human rights training by outside lecturers(4) Information Disclosure
We disclose information concerning our efforts that involve respect for human rights as appropriate through our website,
integrated reports, etc.

Kintetsu Group Integrated Report 202274

2 Human Capital■ Fundamental Policy on Human Resources of the Kintetsu Group (human resource

development and work environment improvement policy)

The Kintetsu Group considers ensuring diversity to be an essential part of its corporate mandate and has established a basic
policy with regard to human resources aimed at hiring and fostering the development of individuals with drive, ability, and characteras well as creating a positive work environment that allows them to flourish.
Based on this policy, we value our employees who have a wide range of knowledge, experience, and personal qualities and work
to support the daily life of customers and create more value for them, sustaining the group’s stable growth.

1

Recruitment

Taking advantage of strong cooperation within the group, we have adopted flexible
hiring practices in line with the needs of each company based on their businessstrategy. The aim is to hire diverse personnel, regardless of whether they are fresh outof college or switching jobs mid-career.

Hiring andfostering thedevelopment of
individuals withdrive, ability
and character

・Boosting recruitment of female employees and mid-career hires to ensure diversity
・Boosting recruitment of digital specialists to advance DX・Utilization of cooperation within the group and a group recruiting website to compete
in a highly competitive jobs market

2

Development

Ensuring Diversity

We foster the development of our personnel through various training and self-development
programs for their ongoing growth on the job, based on the idea that personal evolution
sustains company growth.

・Development of senior management for the group through job rotations
・Establishment of a grant system for employees who earn standard qualifications within
the Kintetsu Group to encourage self-improvement

3

Creating a Positive Work Environment

We firmly believe that a company draws vitality from its employees when they feel
genuine enthusiasm for their work, so we listen closely to what our employees have to
say about their workplaces in each group company and strive to make their work lives
easier and give them greater motivation.

Creating a
positive work
environmentthat allows
individuals toflourish・Establishment of a system that enables flexible working styles unconstrained by timeor physical location
・Expansion of a support system that enables individuals to balance work with childcare
or nursing care
・A self-assessment system and 1-on-1 meetings to boost motivation and psychologicalsafety4

Health and Safety

We believe that our employees’ sound mental and physical health forms the foundationthat supports our operations, so we work with occupational health and safety
professionals to implement measures that promote health and improve work safety inthe work environments of each group company.

・Establishment of a health and productivity management framework and Health &Productivity Management Center to help maintain the mental and physical health of
our employees
・Further advancement of occupational health and safety measures to eliminate
work-related accidents

75

Kintetsu Group Integrated Report 2022

■M
 ain Indicators on Human Resources (major group companies)
These figures pertain to the major Kintetsu Group companies (Kintetsu Group Holdings, Kintetsu Railway, Kintetsu Real Estate, Kintetsu
Department Store, Kintetsu Retailing, Kinsho Store, Kintetsu Miyako Hotels International, KNT-CT Holdings Group’s major companies).

60%

43.1%

11,763

44.9%

43.0%

11,48812,44744.0%

11,500

2,000

50%
43.0%

10,671

15,000

1,500

20%

123

121

1,000

20%
15,243

15,26014,65014,163

5,000
0

15%

130

136

500

8.5% 10%

8.8%

8.3%

7.8%

7.6%

15,515

129

40%
30%

10,000

Number of female managers

1,498

1,429

1,418

1,413

1,404

FY2017FY2018FY2019FY2020

FY20215%10%FY2017FY2018FY2019FY2020

FY20210%

Ratio by employment status

Ratio of foreign nationals

Contract employees 3.4%

Non-Japanese 1.3%00%Number of employees taking childcare leave anduptake among male employees
Number of employees taking childcare leave (total)
Percentage of male employees taking childcare leave

Part-time
employees
35.1%

500

Full-time
employees
61.5%Japanese 98.7%

50%

400

380

300

362

40%
340
30%

283
253

Ratio by age

19.4%

200

60s and over 7.3%

100

50s

0.6%

0

FY2017FY2018FY2019FY2020

FY20210%Note: T he percentage of male employees taking childcare leave does not include
Kintetsu Miyako Hotels International, the KNT-CT Holdings Group (for all periods),
and Kinsho Store (up to fiscal 2020).

30s

15.2%
40s

22.8%

10%

7.7%
3.9%

22.2%

32.5%

20%

12.6%

20s andunder

Business Strategies

25,000

Number of male managers
Female manager ratio

Initiatives for Materiality

30,00020,000

Number of managers and female manager ratio

Number of female employees

Corporate Information

Number of male employees
Female employee ratio

Kintetsu Group’s
Value Creation

Number of employees and female employee ratio

Overview ofthe Kintetsu GroupThe Kintetsu Group covers a broad range of business categories and also faces wide-ranging issues related to human resources.
The Kintetsu Group Human Resources Council, composed of the general managers of the human resources divisions at the group’s
major companies, meets once every two months to exchange information and discuss issues that each company faces such aslabor shortages or excesses and mitigating solutions. Such meetings aim to improve the overall strength of the group by resolving
personnel issues through knowledge-sharing and the effective utilization of human resources across the group.
Group-wide seminars are held as part of recruitment activities, along with training programs to boost employee capabilities.

Messages fromthe Top Management■ Cooperation within the Kintetsu Group* Ratio by age based on
full-time employees

Kintetsu Group Integrated Report 202276

2-1 Recruitment■ Our Basic Approach
The Kintetsu Group hires the personnel we need to implement our business strategy in line with the situation faced by each groupcompany. We are looking for diverse talent—people who are not afraid to take on new challenges and can generate new value—
individuals who think outside the box in response to the rapid changes taking place in the business climate across the group. We
are flexibly hiring all kinds of people, both new university graduates and individuals making a mid-career change.
We also maintain a fundamental policy of fair, non-discriminatory hiring that respects human rights and does not discriminate
based on one’s background, gender, age, sexual orientation, disability, nationality, race, or religion.

■ Strengthening Recruitment of Diverse■ Strengthening Recruitment of Human

For the Kintetsu Group to grow sustainably by providing
diverse value to our customers, we believe it is essential tohave a wide range of employees who possess disparate
knowledge, experience, and personality traits. We hire midcareer people to bring in a new perspective and are currently
working to hire more female employees to make up for pastpolicies. There is a low percentage of female employees at
Kintetsu Railway, for example, because the company used tohave a policy prohibiting women from working late at night.
In addition, throughout the year we carry out new hiring ofpeople with disabilities, regardless of the type of disability, tomeet the mandatory employment ratio and build upon it.

One main measure identified in the Medium-Term
Management Plan 2024 is “creating new businesses andservices through DX,” a part of which is the goal to expand
businesses online to offer real-world attractiveness in eachbusiness area. To achieve this, Kintetsu Group Holdings has
set up a recruitment framework for new graduates for all rolesin the information field separate from other office positions. In
our mid-career recruitment, we are hiring individuals capableof immediately drawing upon their experience in IT and DX as
candidates for future management positions.

Employees

Resources for DX■ Recruitment-related indicators and targets (KPIs)
Indicator

Company
Kintetsu Group Holdings

Ratio of full-time
female employee
hires (%)

Ratio of female
managers (%)

Target year

Target21.7%

FY202530% or higher

Railway transport divisions: 27.7%
Railway engineering divisions: 4.0%

FY2025

Railway transport divisions: 30% or higher
Railway engineering divisions: 5% or higher

Kintetsu Real Estate

24.4%

FY202535% or higher

Kinsho Store

51.9%

FY2025Maintain 40% or higher

Kintetsu Department Store

8.7%

FY203025%

Kintetsu Retailing

8.6%

FY2025

10% or higher

Kinsho Store

4.4%

FY203010% or higher

Kintetsu Miyako Hotels
International

12%

FY202515% or higher

17.0%

FY2025
FY203028% or higher
35% or higher

Kintetsu Railway

KNT-CT Holdings

77

FY2021 results

Kintetsu Group Integrated Report 2022

FY2018

FY2019FY2020

FY2021

Number of hires

4,707

4,274

4,438

3,367

2,422

Of those, female

2,843

2,650

2,817

2,045

1,490

Female hire ratio

60.4%

62.0%

63.5%

60.7%

61.5%

Number of permanent staff hired

642

643

729

687

665

Of those, number of mid-career
hires

166

177

212

145

79

Proportion of permanent staff who
were mid-career hires

25.9%

27.5%

29.1%

21.1%

11.9%

145

214

244

193

287

Newly graduated hires who left

* These figures pertain to the major Kintetsu Group companies (Kintetsu Group Holdings, Kintetsu Railway, Kintetsu Real Estate, Kintetsu Department Store, Kintetsu

Overview ofthe Kintetsu GroupFY2017

Messages fromthe Top Management■ Number of hires, newly graduated hires who left

Retailing, Kinsho Store, Kintetsu Miyako Hotels International, KNT-CT Holdings Group’s major companies).

* The number of permanent staff hired, number of mid-career hires, and proportion of permanent staff who were mid-career hires for fiscal 2017 to 2020 do not include

FY2018－－FY2019FY2020

FY2021

1.36%

1.24%

1.74%

Kintetsu Railway

2.10%

2.40%

2.47%

2.69%

2.43%

Kintetsu Real Estate

1.92%

1.91%

1.76%

1.71%

1.50%

Kintetsu Department Store

2.18%

2.27%

2.33%

2.35%

2.37%

Kintetsu Retailing

1.69%

1.91%

2.13%

2.38%

1.70%

Kinsho Store

2.34%

2.65%

2.98%

2.64%

2.62%

1.73%

2.05%

2.08%

2.08%

2.32%

2.22%

2.29%

2.52%

3.18%

2.57%

Kinki Nippon Tourist*

3.50%

2.97%

2.33%

2.42%

2.33%

Club Tourism International

2.62%

2.14%

2.18%

2.04%

2.13%

Kintetsu Miyako Hotels
International
Kinki Nippon Tourist Corporate
Business*1
2*1 Results for fiscal 2017 are those of the former Kinki Nippon Tourist.
*2 Results for fiscal 2017 are those of Kinki Nippon Tourist Individual Travel and for fiscal 2018 to 2020 are those of Kinki Nippon Tourist Metropolitan.

Kintetsu Group Integrated Report 2022

Business Strategies

Kintetsu Group Holdings

FY2017

Initiatives for Materiality■E mployment rate of persons with disabilities

Corporate Information

status of employment after leaving.

Kintetsu Group’s
Value Creation

figures for the KNT-CT Holdings Group.

* The number of “newly graduated hires who left” pertains to those who left within 3 years and are calculated as hires who left regardless of their reason for leaving or their782-2 Development■ Our Basic Approach
The Kintetsu Group provides systematic training and support for employee self-development and qualifications acquisition to
encourage continued growth on the job. We also encourage self-improvement through a grant system for employees who earnstandard qualifications within the Kintetsu Group.

■ Human Resource Development
Kintetsu Group Holdings carries out level-specific training
for everyone ranging from new hires to general managers
and we promote job rotations across the group to develop
managerial talent at all companies. We employ a talentmanagement system that centralizes information about
employees to offer training and work assignments based on
individual traits, strengths, and weaknesses. We also define
the “ideal employee” and use it for human resource evaluationand other purposes.

Specific traits of an “ideal employee” (excerpt)
・ Has a well-anchored self (makes sound judgments ofright and wrong)・ Takes responsibility for his/her actions (feels a sense ofownership)
・ Proactive and does not shirk responsibility (seeks out
work on his/her own)
・ Acts with awareness of the division and company as awhole (does not put oneself or one’s department first)
・ Quick to understand what is important (takes action
after reflecting on what he/she may be missing or wrong
about)
・ Never gives up (able to come up with alternative ways of
doing things)
・ Is always prepared and resolved (able to make important
decisions in a crisis situation without hesitation)

Kintetsu Group Holdings training system framework (FY2021 results)

Group-wide training

Intelligence

Grit

New general manager training
Managers

Middle manager training
New manager training

Junior management training
Management implementation training
Management simulation

External dispatch training (selective)

Labor management training

Marketing and business strategy
Accounting and finance, etc.

Business skills training (elective)

Employees

Cross-industry exchange

Educational support

Management and analytical skills
Marketing, finance & accounting, IT

Growth enhancement training
Cross-year exchanges
Growth enhancement training
New employee training

Correspondence learning support

AttitudeLanguage learning support for
those dispatched abroad

Level

TOEIC
Businessaccounting tests■ Developing Human Resources for DX
Kintetsu Group Holdings and Kintetsu Railway Co., Ltd. introduced the DX Promotion Leader System in August 2022. The
purpose of this system is to train people at each workplace in basic IT and DX literacy so that they may “create new businesses andservices through DX,” one of the main measures in the Medium-Term Management Plan 2024. A DX-oriented training program has
also been incorporated into level-specific training, including the training of new employees.

79

Kintetsu Group Integrated Report 2022

Main types of training by job role
Company

Description

Kintetsu Real Estate

Sales etiquette training, training to enhance real estate knowledge
such as tax and legal matters
Training to improve customer negotiation skills

Kintetsu Miyako Hotels
International

Service etiquette training, training in initial response to complaints
Contests (cooking, food & beverage, lodging)

Kintetsu Department Store

Customer service and sales skills training, external sales skills training,commercial development training

Kintetsu Retailing

Seminars for store managers, in-station store rules training

Kinsho Store

Basic sales training, customer service training, store manager training,
store chief training, buyer training

KNT-CT Holdings

Training to improve business negotiation skills, training to improve
questioning and engagement skills
Marketing training

Training session on improving hospitality at Kintetsu
Railway

Kintetsu Group’s
Value Creation

Kintetsu Railway

Training for train engineer instructors and conductors, training for new
train engineers and conductors
Training to improve hospitality, new employee visits to the site of the1971 Aoyama tunnel accident and Joganji Temple, and accident anddisaster-relief training

Overview ofthe Kintetsu GroupTo develop and improve the work capabilities of every employee, the Kintetsu Group provides training in all-purpose businessskills, training specific to roles at each level, and training tailored to the duties performed at different jobs and positions.

Messages fromthe Top Management■ Developing and enhancing job role capabilities■S upport for self-development

Kintetsu Group Holdings
Kintetsu Railway•

Grant system for completing company-designated correspondence learning courses and qualifications from certification
exams

•

Qualification acquisition grants (set grants provided to those who acquire qualifications)
Qualification acquisition training system (assistance with tuition or work exemptions for those taking exams to become a
1st-class architect, real estate appraiser, or licensed electrical engineer)

Kintetsu Real Estate•

Kintetsu Department
Store

•
•

Support for tuition fees
Correspondence learning, e-learning, external seminars, GLOBIS Management School, English studies, etc.

•

Grants for employees who complete correspondence learning courses (50–90%)
Exam fees paid to employees who earn company-designated qualifications

Kinsho Store•

Arrangement of correspondence learning and publication subscriptions

Kintetsu Miyako Hotels
International•

Subsidy system for exam fees for qualifications (payment of exam fees for applicable qualifications)
Subsidy system for correspondence learning courses (half of the course fee is paid upon completion of the course)•

Kintetsu Retailing••

Grants are paid to those who complete correspondence learning courses offered twice a year (July and December) or
acquire a national qualification (Certified General Travel Services Manager) or other specialist qualification (area specialist,
cruise consultant, Test of World Heritage Studies qualification) (excl. some group companies)•

Complete e-learning library is available
External dispatch training with open applications, job challenge system (capability development through otherconcurrent roles within the company), leave system for skill enhancement, etc.

KNT-CT Holdings

Club Tourism International•■ Education and Training Results (by topic) (total hours) (FY2021)
Skillsdevelopment
Total
Hours perpersonHuman rights,
compliance,harassment

153,939 hours 13,121 hours
10.0 hours

0.9 hours

SDGs,
environment,
other

Executives

Managers

GeneralemployeesNew
employees

Number ofparticipants

143

1,438

13,164577

Number oftrainings

15

57

115

135
30,112 hours
52.2 hours

Total

37,629 hours 204,689 hours
2.5 hours■ Education and Training Results (by level) (FY2021)

13.4 hours* The scope for both covers the major Kintetsu Group companies (KintetsuGroup Holdings, Kintetsu Railway, Kintetsu Real Estate, Kintetsu Department
Store, Kintetsu Retailing, Kinsho Store, Kintetsu Miyako Hotels International,
KNT-CT Holdings Group’s major companies).

Total hours

1,038 hours

36,919 hours

136,620hours

Hours perperson7.3 hours

25.7 hours

10.4 hours

Initiatives for Materiality

Description
Grants for taking correspondence learning courses (50–90%)• Subsidized exam fees (business accounting examinations, etc.)•

Corporate Information

Company

Business Strategies

Self-development support content* The number of participants is defined as the number of people who took thetraining (no duplication, the number of people who actually attended at least
one training session), and even if the same person attended three types oftraining or the same training twice, he/she is considered as one person.

Kintetsu Group Integrated Report 202280

2-3 Creating a Positive Work Environment■ Our Basic Approach
We believe it is vital to create a positive work environment and strive to improve motivation so that employees are able to reach
their full potential. At each group company, we listen carefully to feedback from our employees. We are enhancing support systems
such as those that encourage childcare or nursing care and are introducing systems that allow for flexible working styles. Other
initiatives include improving motivation by assigning people to positions based on their self-assessments.

■ A positive work environment for a diverse range of employees
We have introduced measures that enable flexible
working arrangements such as a flextime system and theability to take paid annual leave in half-day or hourly units,in addition to teleworking and satellite offices set up in
response to the COVID-19 pandemic. By enabling working
styles that are not dependent on time or physical location,
we are creating work environments that are easy for a wide
range of employees to work in. Kintetsu Retailing Co., Ltd.
has implemented a free address office layout at its head

office to improve operational efficiency.
Also, to better utilize the strengths of senior employees,
we are making changes such as raising the compulsory
retirement age in phases and switching to flexible hiring
arrangements in our rehiring system. In such ways, we aretrying to create a positive work environment that considers
each group company’s situation and enables employees to
use their experience and abilities to the fullest.

Satellite office using the back office at Nagoya Station

Kintetsu Retailing head office■ Systems to support working alongside childcare and nursing care
We are expanding our systems that enable individuals towork according to their private-life situations and maintain ahealthy work-life balance. The systems will allow employees
to work using their full capabilities even at stages in their lifethat require them to provide childcare or nursing care. As away to help balance work with childcare, in April 2018 we
opened nursery school facilities for group employees in threelocations along Kintetsu lines (in Uehommachi, Saidaiji, andYokkaichi) utilizing group-owned buildings in a corporate-led
childcare system.
Kintetsu Uehommachi nursery school facility■ Major initiatives to support work-life balance and working alongside childcare and nursing care
Note: This is an excerpt from the initiatives of major companies.

Work-life balance

Balancing work with childcare and nursing care

Expansion of system allowing employees to take annual leave in
half-days, flextime system, and accumulated leave system• Management of reasonable working hours through work
computer log management• Promotion of telework and no-overtime days
• Automation of routine work through the use of IT technology(RPA, etc.)

•

•

81

Kintetsu Group Integrated Report 2022

Ensuring that employees take childcare leave and work shorter
hours than legally mandated during childcare-giving years• A return-to-work system for employees who have left thecompany due to childcare or nursing care commitments• A childcare leave and spouse’s childbirth leave system for male
employees• Establishment of a consultation service and hosting of seminars
on maternity and childcare leave1-on-1 meetings

Every year, all employees submit a self-assessment to the Human
Resources Division
Goals

Managers hold 1-on-1 meetings for their section employees ona monthly basis. A practical training program for all managerlevel employees is held over a period of several months on
how to hold 1-on-1 meetings.
Goals
To communicate what is expected of a person in their jobrole based on company and division policies and to instill anunderstanding of their mission and the significance of their work
• To improve psychological safety and willingness to contribute
through more active communication, listening, and follow-ups
by supervisors•■ Employee benefits and social services
field, tennis courts, training gym, and other facilities, plus a
company cafeteria. Some group companies have introduceda system for utilizing outside social services and they provide
assistance to employees who use childcare or nursing careservices as well as a discount on leisure and other services.

Business Strategies

The Kintetsu Group features a benefits program that
supports employees in their leisure and private time andpromotes good health. The system includes the use of thegroup’s Health & Productivity Management Center at no costto the employee. In addition to providing medical services, thecenter includes a sports center with a gymnasium, athletic■ Childcare and other leave-related indicators and targets (KPIs)
Indicator

Company

FY2021 results

Target year

Female: 115%*
Kintetsu Railway

Maintain 80% or higher
FY2025

Male: 19.5%

Childcare leave uptake rate

Kintetsu Department Store

Target30%

Male: 30.8%

100%

Initiatives for Materiality

The HR Div. ascertains the career goals of each employee
directly and will use that information to provide highly motivating
job assignments• To identify and resolve issues that may arise with individuals, atworkplaces, or between superiors and subordinates•

Overview ofthe Kintetsu Group

Self-assessments

Kintetsu Group’s
Value Creation

We implement the following types of initiatives to give every employee a chance to understand and tune in to the company’s
direction for success and to feel that their job is rewarding and meaningful, which will stimulate proactive engagement.

Messages fromthe Top Management■ Employee Engagement Initiatives

Employee turnover rate due tochildcare and nursing care

Kintetsu Department Store0%0%

Kintetsu Group Holdings

55.2%

FY202570% or higher

Kintetsu Railway

88.7%

Annually

90% or higher

FY20254% or less for both
men and women

Paid leave uptake rate

Corporate Information

FY2024

Male: 2.2%
Employee turnover rate

Kintetsu Retailing
Female: 8.3%

* In cases where the date of birth and childcare leave starting date straddle two fiscal years, the percentage may exceed 100% because calculations are made for eachfiscal year.

Kintetsu Group Integrated Report 2022

82

■ Paid leave uptake rate
FY2017FY2018FY2019FY2020

FY2021

Kintetsu Group Holdings

58.1%

55.2%

78.0%

57.1%

Kintetsu Railway

90.6%

89.3%

92.6%

88.4%

55.2%
88.7%

Kintetsu Real Estate

30.0%

35.2%

47.3%

48.7%

45.3%

Kintetsu Department Store

48.7%

56.4%

53.3%

38.5%

48.2%

Kintetsu Retailing

21.9%

21.0%

32.5%

31.2%

29.5%

Kinsho Store

78.0%

76.1%

84.5%

73.0%

85.5%

Kintetsu Miyako Hotels International

33.1%

30.7%

53.7%

31.7%

51.8%

Kinki Nippon Tourist Corporate Business*1
Kinki Nippon Tourist*2

54.9%

58.9%

73.4%

39.1%

38.0%

48.5%

45.5%

53.1%

53.1%

47.4%

Club Tourism International

63.4%

57.1%

65.2%

33.4%

36.0%

*1 Results for fiscal 2017 are those of the former Kinki Nippon Tourist.
*2 Results for fiscal 2017 are those of Kinki Nippon Tourist Individual Travel and for fiscal 2018 to 2020 are those of Kinki Nippon Tourist Metropolitan.

■ Average length of service in years
FY2017
Kintetsu Group Holdings
Kintetsu Railway
Kintetsu Real Estate
Kintetsu Department Store
Kintetsu Retailing
Kinsho Store
Kintetsu Miyako Hotels
International
Kinki Nippon Tourist
Corporate Business*1
Kinki Nippon Tourist*

2

Club Tourism International

FY2018FY2019FY2020

FY2021

20.0

19.5

19.4

17.7

Female

－
－

19.0

12.4

13.2

12.1
24.0

Male
Male

23.6

24.1

24.4

24.2

Female

8.7

8.6

8.1

8.0

8.1

Male

17.0

17.3

16.8

16.5

16.6

Female

16.4

16.4

17.3

17.6

17.3

Male

22.6

23.2

23.6

24.1

24.8

Female

16.8

17.7

18.4

18.8

19.2

Male

7.3

7.9

8.8

9.6

10.4

Female

8.8

9.2

9.4

9.4

9.9

Male

22.1

24.0

18.7

18.9

19.3

Female

9.6

12.1

13.2

13.3

12.8

Male

13.7

14.4

14.1

12.2

13.6

Female

6.8

7.6

7.3

6.9

7.0

Male

18.8

21.1

21.8

21.9

23.0

Female

8.8

11.1

11.5

10.8

11.9

Male

19.0

24.0

24.1

24.4

23.9

Female

11.4

13.0

12.6

12.4

12.4

Male

12.2

12.0

12.2

12.9

13.8

Female

9.4

9.1

10.2

10.5

11.6

*1 Results for fiscal 2017 are those of the former Kinki Nippon Tourist.
*2 Results for fiscal 2017 are those of Kinki Nippon Tourist Individual Travel and for fiscal 2018 to 2020 are those of Kinki Nippon Tourist Metropolitan.

■ Employee turnover rate
FY2017FY2018FY2019FY2020

FY2021

Kintetsu Group Holdings

0.8%

0.8%

1.5%

2.6%

4.3%

Kintetsu Railway

0.9%

1.4%

1.4%

3.5%

1.8%

Kintetsu Real Estate

2.6%

2.9%

3.0%

3.0%

4.4%

Kintetsu Department Store

3.2%

4.0%

3.0%

2.8%

2.7%

Kintetsu Retailing

3.7%

5.3%

4.4%

3.9%

4.0%

Kinsho Store

3.6%

3.8%

6.1%

2.7%

3.2%

Kintetsu Miyako Hotels International

11.2%

12.1%

13.4%

9.3%

13.4%

－

－

－

16.7%

10.2%

KNT-CT Holdings Group*• The employee turnover rate does not include retirees who have reached retirement age.
• Fiscal 2020 figures include those who retired under an early retirement incentive plan implemented by Kintetsu Group Holdings and Kintetsu Railway Co., Ltd.

* The fiscal 2020 figures for the KNT-CT Holdings Group are the non-consolidated results for KNT-CT Holdings Co., Ltd.

83

Kintetsu Group Integrated Report 2022

(Created September 2021)

The Kintetsu Group will:• Recognize that the mental and physical health of its employees is the basis of its business, and so it actively strives to maintainand improve that health as an important management issue.
• Contribute to society by creating new value, by ensuring employees can play active roles healthily and energetically.

CSR Committee
Chairman: KGH president
Members: KGH corporate officers
Responsible officers of major
Kintetsu Group companies

To promote health and productivity management, in fiscal
2021 we established a health and productivity management
framework centered around the CSR Committee chaired by
Kintetsu Group Holdings’ president. The Kintetsu Group is
working to achieve group-wide health targets—reduce theemployee obesity rate and lower the percentage of employees
who feel highly stressed. To that end, each group company
will cooperate with the Health & Productivity Management
Promotion Secretariat, staffed by occupational health workers
who have specialized expertise, to enact various measuresand promote better employee health.

Philosophy

Health & Productivity
Management Promotion
Secretariat
Secretariat chief: KGH committee
member responsible for humanresources
Members: KGH Human Resources
Division, occupational health staff

Group companies
Target setting Implementationof measures

Target setting

Employees

Measures
implementation* Kintetsu Group Holdings = KGH■H ealth & Productivity Management Strategy
In fiscal 2020, Kintetsu Group Holdings and Kintetsu
Railway Co., Ltd. created a strategic map for healthmanagement. At Kintetsu Railway, the total number of daysof absence for medical reasons (absenteeism) had been on
the rise since fiscal 2017, resulting in a drop in productivity.
Mental health issues seemed to play a big role, so efforts werefocused on preventing mental health problems. In fiscal 2021,
mental health issues accounted for 4,306 days of absencefrom work, a 5.8% reduction from the previous year. The drop
in absenteeism contributed to increased productivity and wewill continue to aim for 3% annual reductions to further theeffectiveness of health management.

Investment effects
Indicators related to thestatus of health investment
measures

Indicators related to changes
in employee awareness andbehavior

Reduction of overtime
hours

Improved sleep

Flexibleannual leavein half-days

Increased uptake of paid
leave

Higher percentage of
employees who exercise
regularly

Athletic
eventsIncreased participation inathletic events

Improved communication

Infectious
diseaseprevention

Higher influenza
vaccination rate

Lower work absence rate
due to infectious diseases

Healthguidance

Increased uptake of healthguidance

Higher percentage of
employees aware of needfor diet improvement

Mentalhealthcare

Higher percentage of
employees taking stresschecksLower percentage of
employees who feel highly
stressed

Seminars forquitting
smoking

Higher participation inseminars for quitting
smoking

Lower percentage ofsmokers

Women’sseminars

Higher participation in
women’s seminars

Higher rate offemale-specific healthcheckups

No-overtimedays

New leave
systemNew healthmanagement
systemHealthcheckups

Final target indicators related
to health

Issues to be resolved

Corporate Information

Health investments

Reduced absenteeism

Reduced presenteeism

Improved engagement

Decrease in turnover rate

Business Strategies■ Health and productivity management framework

Initiatives for Materiality

Kintetsu Group Health & Productivity Management Declaration

Overview ofthe Kintetsu GroupThe Kintetsu Group is actively engaged in health and productivity management, aiming to raise corporate value by promoting
good health among our employees. The Kintetsu Group Health & Productivity Management Declaration was created in September
2021 to further promote these efforts.

Kintetsu Group’s
Value Creation■ Kintetsu Group Health & Productivity Management Declaration

Messages fromthe Top Management

2-4 Health and Safety

Increased employee
productivity
Providing better service
to customers

Decrease in obesity rate

Decrease in percentage of
employees requiring
medical exams

Kintetsu Group Integrated Report 2022

84

■ Major Initiatives to Maintain and Promote HealthAs a means of offering health management to employees
at all group companies, the Health Management Centerrun by Kintetsu Railway Co., Ltd. was relaunched under the
auspices of Kintetsu Group Holdings as the Kintetsu Group
Health & Productivity Management Center in June 2019. The
renovated center was expanded to be able to offer a wide
range of health checkups to group employees. The center
provides general medical care and guidance consultations
following health checkups, as well as a consultation section
exclusively for women and mental health counseling provided
by occupational health doctors.

In addition, the major companies of the Kintetsu Group aretaking numerous measures
to help improve the mental
and physical health of thegroup’s employees and tomeet health and productivity
targets. These include regulartraining sessions on mental
health, stress checks, newly
Group Health & Productivity
built office lounge areas, and Kintetsu
Management Center
workplace walking events.

■ Physical health initiatives■ Mental health initiatives

Subsidies for medical checkups to prevent lifestyle-relateddiseases, ongoing health guidance and education, and ahealth follow-up system• Full cost covered for influenza vaccinations, provided inhouse• Guidance for quitting smoking, measures to prevent secondhand smoke, reduced number of smoking rooms• Non-mandatory medical tests offered with periodic healthcheckups• Health checkups for a wider range of employees than requiredby law and guidance provided by occupational health doctors• Participation as a company in online athletic events using awalking app••* Excerpted from the initiatives of major companies* Excerpted from the initiatives of major companies■ Our Occupational Safety and Health■ Certification as a Health & Productivity

Kintetsu Railway Co., Ltd. has established management
policies for occupational safety and health at each workplace,based on which employees work together proactively toward
the goal of zero work-related accidents.

In March 2022, for the third consecutive year, the Ministryof Economy, Trade and Industry (METI) recognized KintetsuGroup Holdings and Kintetsu Railway Co., Ltd. as “White 500”
corporations that practice outstanding health and productivity
management.

Management Policy◎O ccupational Safety and Health Management Policy(FY2022)

1. Occupational Safety Management Policy

Work together to create a workplace withzero work-related accidents
Always carry out “pointing and calling”
Eliminate negligent work
• Zero traffic accidents through careful, anticipatory driving andactions••

2. Occupational Health Management Policy

Work together to build health in mind and bodyLet’s create positive, open workplaces
Let’s prevent illnesses by ourselves• Let’s stop smoking and get exercise••

85

Stress checks covering all workplaces, consultations forpeople feeling highly stressed, and improvements to thework environment• Mental health helpdesk staffed by public health nurses,
external phone consultation services, and counseling roomat the Health & Productivity Management Center• Consultations with an occupational health doctor for individuals
who have taken leave due to mental imbalance and returned
to work• Periodic mental healthcare training sessions• Encouragement to take the Mental Health Management
Certification Test

Kintetsu Group Integrated Report 2022

Management Outstanding Organization

■ Shared Targets of Major Companies in Health Management (KPIs)

FY2021 results

FY2023 target

33%

Under 30%

6.1%

Under 6%29%

25% or lower

4.1%

3% level

Kintetsu Department Store

24.2%

Below FY2021 figures

12.7%

Below FY2021 figures

Kintetsu Retailing

28.8%

Under 28%

16.7%

Under 15%

Kinsho Store

28.6%

21.7%

Kintetsu Miyako Hotels
International

22.4%

4.9%

Club Tourism International

23.4%

15.7%
Below FY2021 figures

23.7%

Head office: 14.7%
Other than head office: 21.7%

Kinki Nippon Tourist
Corporate Business

20.1%

13.0%

Below FY2021 figures

Kintetsu Group’s
Value Creation

Kinki Nippon Tourist* In addition to the targets above, individual companies have set their own targets, such as to reduce the smoking rate.

■ Number of work-related accidents (total for major companies)
FY2017
Number of workers involved in
work-accidents

FY2018FY2019FY2020

FY2021

196

207

217

171

156

Employees

－

－

－

164

140

Contractors

－

－

－

7

16

Work-related fatalities

0

0

0

0

0

Number of breaches of labor
standards

2

0

1

2

2

* These figures pertain to the major Kintetsu Group companies (Kintetsu Group Holdings, Kintetsu Railway, Kintetsu Real Estate, Kintetsu Department Store, Kintetsu
Retailing, Kinsho Store, Kintetsu Miyako Hotels International, KNT-CT Holdings Group’s major companies).

* Fiscal 2017 to 2019 do not include figures for the KNT-CT Holdings Group.

■ Average number of overtime hours per month
FY2017FY2018FY2019FY2020

FY2021

Kintetsu Group Holdings

12.0

14.2

15.0

12.0

15.5

Kintetsu Railway

21.5

22.3

21.7

16.7

17.6

Kintetsu Real Estate

11.7

11.3

11.0

12.6

13.2

Kintetsu Department Store

14.1

15.1

14.8

7.6

9.6

Kintetsu Retailing

4.8

5.2

5.2

7.6

8.0

Kinsho Store

14.0

14.4

15.0

15.0

17.8

Kintetsu Miyako Hotels
International

17.5

16.7

14.8

6.3

7.3

2.6

15.1

KNT-CT Holdings Group

－

－

－

Messages fromthe Top Management

FY2023 target

Overview ofthe Kintetsu GroupFY2021 results

Kintetsu Group Integrated Report 2022

Business Strategies

Kintetsu Real Estate

Reduce percentage of employees who feel highly stressed

Initiatives for Materiality

Kintetsu Group Holdings andKintetsu Railway

Reduce obesity rate

Corporate Information

Company86Materiality

Bolstering Our Governance and Risk Management

1 Corporate Governance■ Fundamental approach
As summed up in our management philosophy—To Support Daily Life, To Create More Value—our goal is to support safety inpeople’s lives and boldly take on the challenge of creating new value, through sincere corporate activities. We also aim to collaborate
with a diverse range of people to make our society better. Through these activities, we hope to maintain and strengthen our
relationships of trust with customer, local communities, shareholders, business partners, employees and other varied stakeholders,so to this end, we are working to enhance our corporate governance and the soundness of our management.

■A history of governance reforms

2021
Jun. ● Increased the number of female corporate officers (to 1 external director and1 external Audit & Supervisory Board member)● Changed the number of directors to 12 (of whom one third (4) are independent
external directors)
Mar. ● Revised the decision-making process for the amount given to individual
directors as pecuniary rewards (from entrusting the matter to the chairman todeliberations by the entire board)
2020

Jun.

2019
Jun.

2018

●

Oct.

2016

2015

2012
Jun.

2010
Jun.

2006

2004
Jun.

Jun.

●

May

●

●

●

●

●

May

●

Oct.

●

Apr.

●

2014
Jun.

Jun.

●

●

●

●

Appointed a female corporate officer (1 external Audit & Supervisory
Board member)

Reviewed the corporate officer remuneration system (introducing compensation
via transfer-restricted shares)
Changed the number of directors to 14 (of whom 4 were external directors)

Established the Personnel and Compensation Advisory Committee (of whom amajority of members are independent external directors)

Ended anti-takeover measures due to changes in the management
environment, etc.
Started evaluating the effectiveness of the Board of Directors

Reviewed the corporate officer remuneration system (raised the proportion of
performance-linked compensation)
Switched to a pure holding company structure (to raise corporate value by
strengthening group management functions and giving group companies
greater management independence)Started employing an electronic voting platform for use at general meetingsof shareholders

Reviewed the corporate officer system (established the senior managing
executive officer and managing executive officer ranks)

Held the general meeting of shareholders on June 25, and changed it to makefuture such meetings earlier in the fiscal year

Reviewed the corporate officer remuneration system(introduced performance-linked compensation)
Introduced anti-takeover measures to raise corporate value and secure profits
to share with shareholders

Changed the number of directors to 17 (of whom 4 were external directors)

2003
Jun.

●
●
●
●

87

Ended the retirement golden handshake system for corporate officers
Introduced an officer system
Shorted directorial terms from 2 years to 1
Changed the number of directors from 25 to 19 (of whom 4 were external directors)

Kintetsu Group Integrated Report 2022

We believe that having a highly transparent, fair management framework is vitally important for building relationships of trust, andto that end we work to enhance our corporate governance.

Overview of the corporate
governance framework

Shareholders

President

Cooperation

Overview ofthe Kintetsu Group・Makes important business execution decisions
・Selects and dismisses representative directors
・Oversees the directors’ execution of their duties
・Determines basic policy toward establishing aninternal control system

Audit &
Financial auditors
Supervisory Board Cooperation

Audit &
Supervisory
Board Member
Support Dept.

Execution

Personnel andCompensation
Advisory Committee

Cooperation

Executive directors& officers

MutualchecksExecutive directors& officers

MutualchecksAuditing

Kintetsu Group’s
Value Creation

Board of Directors

Internal Audit Dept.

Discussion bodies for business execution:
Management Committee, Board of Managing Directors,
Group Strategy Committee, CSR Committee,
assorted project teams, etc.

Auditing

Business Strategies

Supervision

Executive directors& officers

Establishing a sound corporate culture and internal
environment as clearly seen in the Kintetsu GroupManagement Philosophy, Corporate Code of Conduct, etc.

General Meeting of Shareholders

Messages fromthe Top Management■ Corporate governance framework

Management
oversight

Group companies

The Kintetsu Group Holdings Corporate Code of Conduct, which acts as the foundation for how we behave, is detailed below.
・We will raise customer satisfaction through the businessactivities of group companies.
・We will increase corporate value through the independence
and cooperation of group companies.
・We will contribute to the development of local communities
as a good corporate citizen.
・We will work diligently to protect the environment.

・We will comply with the law and hold ourselves to a highethical standard.
・We will disclose information as appropriate and ensuretransparency of management.
・We will respect human rights and foster workplaces wherelabor and management work together harmoniously.
・We will outright refuse any relationship with anti-social forces
or organizations.

Corporate Information■C orporate Code of Conduct

Initiatives for Materiality(As of June 2022)■ Corporate governance indicators and targets (KPIs)
Company

Indicator

FY2021 results

Target year

Target

Kintetsu Group Holdings
Co., Ltd.

External director ratio

33.3%

FY2022

Maintain one third or higher

Kintetsu Group Integrated Report 2022

88

■ Directors■ Appraising the effectiveness of the Boardof Directors

Kintetsu Group Holdings has 12 directors, 4 of whom areexternal directors who do not have a personal stake in thegroup’s success or failures. Their opinions, which come froma wealth of experience and wide-ranging points of view, areincorporated into the group’s management and the board
works to strengthen management oversight functions. Thereis currently one female director.

■ Board of Directors
The Board of Directors is chaired by Kintetsu Group
Holdings’ chairman and meets, in principle, once a month. In
addition to deciding important matters of business execution,
it regularly receives progress reports on business activities,
including on the status of efforts to establish and operateinternal controls. Business execution is then overseen by theboard’s executive directors and officers.
As well as deciding on vital topics concerning KintetsuGroup Holdings’ business execution, the Board of Directors
approves important matters at major group companies, reports
on revenue and expenditure budgets and performance, andfulfills other roles. The attendance figures and percentages forfiscal 2021 for each director can be found below.
Director
Tetsuya Kobayashi

10/10(100%)

Toshihide Ogura

10/10(100%)

Yoshihiro Yasumoto

10/10(100%)

Masaaki Shirakawa

9/10

(90%)

Hiroyuki Murai

9/10

(90%)

Takashi Wakai

10/10(100%)

Shiro Hara

10/10

(100%)

Nobu Hayashi

7/8

(88%)

Kunie Okamoto

10/10(100%)

Ryuichi Murata

10/10(100%)

Masanori Yanagi

9/10

(90%)

Toshiko Katayama

10/10(100%)* Information for Nobu Hayashi only covers Board of Directors meetings held after his
appointment on June 18, 2021.

* Information for Toshiko Katayama also covers Board of Directors meetings she

attended as an Audit & Supervisory Board member prior to her appointment as adirector on June 18, 2021.

Audit & Supervisory Board Member
Hirohisa Tabuchi

10/10(100%)

Hitoshi Tada

10/10

(100%)

Masahiro Maeda

10/10(100%)

Kazumi Suzuki

10/10(100%)

Michiko Inoue

7/8

(88%)

* Information for Michiko Inoue only covers Board of Directors meetings held after her
appointment on June 18, 2021.

89

Kintetsu Group Integrated Report 2022

In order to evaluate its own effectiveness, the Board of
Directors has continued from last year in carrying out selfassessments for all directors and auditors. The findings ofthese are analyzed and appraised, and an overview of these
are as follows.
The Board of Directors was given a positive evaluation
overall. It receives prior explanations for important matters,
meetings are held at appropriate times and frequency, and theboard is functioning properly in both its decision-making andoversight roles with a well-balanced composition of corporate
officers. The reports it receives from the presidents of eachof the group’s main group companies about their respective
issues and measures are also clear.
One issue that was identified during last year’s effectivenessappraisal was that there was a desire for advance explanations,
opportunities to question people involved, and documents
to be provided earlier. This time, the situation around early
distribution of documents and advance explanations wasdeemed to have improved.
On the other hand, due to the COVID-19 pandemic andother reasons the management environment has become
more severe, and so there are more very important mattersthat require decisions. There was some feedback that as aresult, it would be better to dig down further than previously
into the background or through verification where possible
when providing documents or explanations.
Taking these ideas on board, we will continue to work to
improve the board’s functions.

■ Diversity policy for the Board of Directors
Corporate officers are appointed based on overall
considerations of experience, knowledge, abilities,
personalities, and other factors, regardless of gender.
However, given that female-perspective-driven management
will be increasingly important going forward, we will
undertake further initiatives to promote female participation.
Also, in the case of external corporate officers, we will appoint
myriad individuals—such as executives in other companies,
attorneys, and academics from all manner of fields—andconsider the diversity of the board’s composition.

■ Audit & Supervisory Board members■ Personnel and Compensation Advisory

12/12(100%)

12/12(100%)

Masahiro Maeda

12/12(100%)

Kazumi Suzuki

12/12(100%)

Michiko Inoue

8/9

(89%)

The seven external officers who meet the independent
officer criteria have been designated as independent officers.
Independent officers are external directors and external
Audit and Supervisory Board members who will not havea conflict of interest with general shareholders, and thestandards by which we determine independence are detailed
in corporate governance reports.

* Information for Michiko Inoue only covers Audit & Supervisory Board meetings held
after her appointment on June 18, 2021.

■ Corporate officer skills matrix

NameManagement
experience

Business
experience

Marketing/Businessstrategy

Representative Director,
Chairman of the Board

Tetsuya Kobayashi

○

○

○

Representative Director,
President

Toshihide Ogura○○

Director, Senior Managing
Executive Officer

Masaaki Shirakawa

Director, Senior Managing
Executive Officer

Takashi Wakai

Director, Managing
Executive Officer

Shiro Hara

Director, Managing
Executive Officer

Nobu Hayashi

Director, Managing
Executive Officer

Akihiko Matsumoto○

Director, Managing
Executive Officer

Kunimitsu Izukawa○○

External Director

Kunie Okamoto

○

○

○

External Director

Masanori Yanagi

○

○

○

External Director

Toshiko Katayama

External Director

Takashi Nagaoka

Audit & Supervisory Board
Member (full-time)

Hirohisa Tabuchi

Audit & Supervisory Board
Member (full-time)

Hitoshi Tada

Position○

IT/DX

Finance/
Accounting

○
○

○

○

○

○
○

○
○

○
○

○

○
○
○
○

○
○

Human Resource
development/
Diversity

○

○

○

○

○

○

○
○

External Audit & Supervisory
Masahiro Maeda
Board Member○

External Audit & Supervisory
Kazumi Suzuki
Board Member
External Audit & Supervisory
Michiko Inoue
Board Member

Governance/
Compliance○○○

Legal affairs

Corporate Information

Hirohisa Tabuchi
Hitoshi Tada

■ External officers’ independence

Overview ofthe Kintetsu GroupIn principle, the Audit & Supervisory Board meets oncea month. In addition to determining basic policies towardauditing, each board member will report on their ordinary
auditing activities, and members will then exchange opinions
among themselves.
The attendance figures and percentages for fiscal 2021
for each member can be found below.

Kintetsu Group’s
Value Creation■ Audit & Supervisory Board

Business Strategies

The Personnel and Compensation Advisory Committee
was established to act as a consulting body for the Boardof Directors, and it aims to discuss the personnel andcompensation affairs of directors, and to assist with theboard’s decisions. More than half of its members are
independent external directors. The committee holds thefunctions of both a directorial candidate selection committee
and a remuneration committee, and is currently composedof six members—Kintetsu Group Holdings’ chairman andpresident, as well as four independent external directors—
and meets at least once a year. In fiscal 2021, the committee
met once, with all members in attendance, where it discussed
revisions to the corporate officer system, personnel affairs forcorporate officers, corporate officer remuneration and othertopics.

Initiatives for Materiality

Of the five members of Kintetsu Group Holdings’ Audit &Supervisory Board, three are external auditors and independent
officers. We ensure members have the required expertise to
discuss matters of a financial, accounting, and legal nature,
and we aim to enhance the stringency and thoroughness of
the auditing process. There is currently one female Audit &Supervisory Board member.

Messages fromthe Top Management

Committee

○
○

○

○
○
○

○

* The table above does not detail all the knowledge, experience, or capabilities that each director or auditor may possess.
Kintetsu Group Integrated Report 2022

90

■ Remuneration for directors and Audit &Supervisory Board members

Director and auditor remuneration is decided within thescope approved by the general meeting of shareholders for
total compensation. The pecuniary remuneration for individual
directors is determined by the Board of Directors after
deliberations by the Personnel and Compensation Advisory
Committee, more than half of whose members are independent
external directors. Compensation for full-time directors ismade up of a fixed pecuniary reward, a performance-linked
pecuniary reward, and remuneration in shares. Compensation
for Audit & Supervisory Board members is pecuniary amountdetermined by discussions by the Audit & Supervisory Board.
Our decision-making policies on remuneration for individual
directors, as well as remuneration for each type of corporate
officer, are detailed below.
Decision-making policies on remuneration for individual directors
With the belief that directorial remuneration should act as afurther incentive to raise corporate value and performance, it
comprises three parts: a fixed pecuniary reward, a performancelinked pecuniary reward, and remuneration in shares. Individual
amounts are determined in line with the following policies:i.	Decision-making policy on fixed pecuniary rewards
Fixed pecuniary rewards are set in accordance with rank andconsider duties, etc.
ii.	Decision-making policy on performance-linked pecuniary
rewards
Full-time directors are provided with performance-linked pecuniary
rewards. The amount is set in accordance with rank, andcalculated based on the amount of two indicators: consolidated
ordinary profit and profit attributable to owners of parent.
iii.	Decision-making policy on remuneration in shares
For full-time directors’ remuneration in shares, they are given
transfer-restricted shares that come with certain conditions—such as not being able to be disposed of until after leaving theirposition—and the number of shares is set in accordance with rank.
iv.	Decision-making policy on pecuniary proportion of different
compensation levels
The ratio between fixed pecuniary rewards, performancelinked pecuniary rewards, and remuneration in shares are set
to appropriate proportions to contribute to raising corporate
value and performance.
v.	Decision-making policy on when rewards are provided
Pecuniary rewards are paid each month. A year’s worth of
remuneration in shares is provided each July, but should theBoard of Directors have deemed that a major legal breach, orother specific event, has occurred, the company may choose
not to provide this reward.
vi.	Decision-making method on individual remuneration amounts
The amount of individual remuneration is determined by the Board of
Directors, following deliberations by the Personnel and Compensation
Advisory Committee, based on plans created by the company.

■ Internal control system
More details of our internal control system can be found in
our corporate governance report, in particular in the section“IV. Internal Control System.”■ Significance of possessing listed

subsidiaries and governance effectivenessOf our subsidiaries, there are three that are listed on Tokyo
Stock Exchange’s Standard Market: Kintetsu Department
Store Co., Ltd., KNT-CT Holdings Co., Ltd., and Kin-Ei Corp.
We have developed a wide range of lifestyle-related
businesses, first and foremost our railway business, andKintetsu Department Store Co., Ltd. and Kin-Ei Corp.’simportant role is to develop comfortable, varied urban
functions at major train terminals and locations along ourlines. KNT-CT Holdings Co., Ltd.’s important role, meanwhile,
is to attract visitors to Ise-Shima, Nara, and tourist attractionsin the Kintetsu operational area. By having our companies
connect organically in this way, we aim to achieve the goalof our management philosophy: To Support Daily Life, To
Create More Value. On the other hand, for these market-listedcompanies, having them listed increases their autonomy andis also an advantage in terms of gaining the trust of society
and securing personnel. We believe that in this way wecan synergistically raise the quality of the Kintetsu Group’s
management.
For our oversight of group management, we take care notto adversely affect these listed companies’ independence or
the profits of their few shareholders. For vital transactions
between the listed companies and ourselves in the parent
company, we make sure to receive approval from our Boardof Directors, which includes several independent external
directors. Where needed, we also take on board third-party
opinions to ensure the fairness of any such dealings.

Amount of remuneration (FY2021)
Corporate officer type

Total (million yen)

Reward breakdown (million yen)Fixed pecuniary

Performance-linked

Remuneration in shares

Directors

290

211

49

29

15

(of which, external directors)

(24)

(24)

(－)

(－)

(4)

Auditors

65

65

－

－

6

(of which, external auditors)

(18)

(18)

(－)

(－)

(4)

* Includes remuneration, etc., for 3 directors and 1 external Audit & Supervisory Board member who retired during fiscal 2021.
* The amounts for remuneration in shares are the cash amounts, taking into account expenses, during fiscal 2021.

91

Number of individuals

Kintetsu Group Integrated Report 2022

■ Legal and ethical consultation system

We have formulated a set of guidelines pertaining tocompliance with laws, regulations, and corporate ethics andhave distributed copies of “The Legal and Ethical Standards
Manual” to officers and other employees so as to raiseawareness.

To quickly detect and correct infractions of legal standards,
corporate ethics, or our internal regulations, we haveestablished internal and external legal and ethical consultation
helpdesks. The helpdesks can handle reports and queries
from Kintetsu Group Holdings employees and employees
from 61 group companies in the transportation, real estate,
hotel and leisure, logistics, and other fields (there were 50
such reports in fiscal 2021).
These helpdesks also act as hotlines for internal
whistleblowing, based on the provisions of the Whistleblower
Protection Act. We have also established female-staffed
helpdesks to deal with consultations from female employees,
and internal and external (at a law firm) helpdesks thatspecialize in dealing with reports of job hunting harassment.
An important part of the system is that the name of anyone
who raises concerns, and the nature of their consultations,
are kept confidential and handled impartially.
Legal and ethical consultation system flow
KGH and group company employees
Consultation

Report of results

Report of results

Consultation

Legal and ethical
External consultation helpdesk(Outside legal office)consultation helpdesk
Reportof(Legalandethicalaffairs
rep,
Report of
Audit &
ReportAdministrative General Affairs Div., results
Supervisory results
Board
Kintetsu Group Holdings
members
ReportDirections
Chairman of the
CSR Committee
Investigation

Report/Cooperation

Relevant departments(incl. group companies)* Kintetsu Group Holdings = KGH(As of April 2022)■E ducation and training
To raise awareness of compliance, we carry out training
for all employees twice a year to give an understanding of theimportance of compliance and the risk of breaches. Training is
split into different levels, for every class of employee from new
employees to corporate officers. With an understanding of theirroles and responsibilities according to their position, employees
are working to prevent scandals and raise corporate value.
Furthermore, to raise groupwide awareness, we provide
training materials to group companies as a way of supporting
their legal and ethical training. We also work to prevent

Initiatives for Materiality

1. We will thoroughly comply with laws and regulations.
2. We will rigidly enforce information management.
3. We will prohibit insider trading.
4.	We will respect human rights and prevent discrimination.
5. We will prohibit harassment.
6.	We will outright refuse any relationship with anti-social
forces or organizations.
7.	We will handle our assets appropriately.
8.	We will police entertainment of guests and gift-giving.
9.	We will make sure business dealings are fair and honest.
10.	We will utilize our intellectual properties appropriately.
11.	We will ensure the transparency of business operations.

Corporate Information

Kintetsu Group Holdings Co., Ltd. formulated the policy
below with regards to legal and ethical compliance. All
employees, including officers, understand the policy andstrive to ensure compliance.
All managers responsible for this organization, including theofficers who manage the group, will set an example and always
endeavor to strengthen the internal system to guarantee theeffectiveness of the Corporate Code of Conduct and the Legaland Ethical Guidelines.

Overview ofthe Kintetsu Group■ Legal and Ethical Guidelines

Kintetsu Group’s
Value Creation

To promote corporate behavior that is line with laws, regulations, and corporate ethics, we have formulated the Legal and Ethical
Guidelines. We have set out our policies on strict information management, the elimination of anti-social forces, prevention of bribery
and corruption and other topics, and details can be found on our website. All officers and other employees have been issued witha handbook entitled “The Legal and Ethical Standards Manual,” and we work to spread awareness of these issues. Moreover, ourpolicy on the protection of the personal information that we handle is outlined in the separate Personal Information Protection Policy.
In terms of our internal framework, in addition to establishing the CSR Committee, we have also placed legal and ethical standards
managers and persons in charge in each department, and are promoting compliance activities. We have established complianceframeworks in our group companies and are promoting appropriate corporate behavior.

Business Strategies■ Legal and ethical compliance framework

Messages fromthe Top Management

2 Compliancescandals by holding on-site training at other group companies
to conduct discussions that consider individual companies’
businesses and needs, and to exchange specific case studies.
In fiscal 2021, we provided training
materials to 61 group companies
twice and a total of 700 people
went on on-site training at 16 groupcompanies or facilities.
Employees receiving training

Kintetsu Group Integrated Report 2022

92

3 Risk Management■ Basic risk management policy
By developing and operating appropriate internal control systems, we aim to reduce risk and raise corporate value.
Under the Financial Instruments and Exchange Act, we are obliged to evaluate and audit internal controls that pertain to financial
reporting. As such, we have determined fundamental plans and policies for such internal controls.

■R egulations and other frameworks■K intetsu Group’s basic information

In order to adequately manage business and otherrisks, we formulated our comprehensive Risk Management
Regulations. We also, where necessary, carry out debates onmatters of importance, including risk, at deliberating bodies
such as the Board of Directors, Management Committee,
Board of Managing Directors, and Group Strategy Committee.
To manage categories of risk deemed particularly
important—such as crisis management for incidents anddisasters, or matters of legal and ethical compliance—wehave specialist staff in addition to the overall risk management
framework, and prepare separate management systems,
such as by formulating internal regulations or instruction
manuals.

As our reliance on IT in our corporate activities has grown,
so has the importance of information security measures.
Therefore, to maintain a necessary information security
standard, Kintetsu Group Holdings and its subsidiaries have,as a group, have compiled fundamental principles that should
be complied with throughout the group in the Kintetsu Group
Information Security Basic Policy.

concerning loss risk management

Overall risk management framework
Risk management bodies
Board of Directors
Discussion of risk andother important matters

Audit&
Supervisory
Board
members

Any meeting
Management Committee

Board of Managing Directors

Group Strategy Committee

CSR Committee

Cooperation

Controls management ofoperational risk relating
to safety, etc.

To ensure that we maintain and manage all of theinformation assets that we possess in an appropriatemanner, we work to secure information security.
1. Information management
We have clarified roles and responsibilities relating to
information security, and we will manage all of the information
assets we possess appropriately in response to theirimportance and any risks.
2. Legal compliance
We will adhere to related laws, contracts with customers,
these policies, and regulations set by individual groupcompanies.
3. Technical security measures
In order to prevent unauthorized access to information, or its
loss, falsification, leaking, or disappearance, we take bothtechnical and physical security measures.
4. Training and education

Risk summarizing divisions
Administrative
General Affairs Div.

security policy

Corporate Strategy Div.
Controls management ofcorporate strategic risk
relating to new investments, etc.

Corporate officers, other employees and workers undergo
training and drills on information security. This training aims tohelp them recognize their own roles and responsibilities, andalso provide them with the knowledge needed to implement
information security measures.
5. Managing contractors

EachdivisionEachdivisionGroupcompany

Groupcompany

Groupcompany

Manages business activity risk related to jurisdictions(As of June 2022)

When we outsource tasks to external parties, we share thesepolicies with contractors, and request that they maintain thesame kind of security level as the Kintetsu Group.
6. Response to breaches
In the unlikely event that an information security incident
should occur, we will work swiftly to respond and minimize
damage, as well as to prevent a reoccurrence.
7. Maintenance and improvement
Should the situation change in terms of information security
measures or in the environment, we will carry out reviewsand endeavor to maintain and continuously improve ourinformation security.

93

Kintetsu Group Integrated Report 2022

Taking into account the Kintetsu Group’s business and financial situation, management has identified the major risks—issues
that they recognize as having the potential to adversely affect the financial standing, operating results, or cash flows of KintetsuGroup Holdings or its consolidated subsidiaries—detailed in the table below.
As well as recognizing the likelihood of these risks occurring, we are working to avoid them coming about or how to respond ifthey do.
Moreover, forward-looking statements were determined by the Kintetsu Group as of November 11, 2022, the publication date of
our Fiscal 2022 Second Quarter Report.

2

Spread of infectious
diseaseThe spread of the COVID-19 pandemic has placed restrictions
on economic activities, halted customers’ business activities,
and led to a rapid drop in demand for travel and tourism. These
have had a massive impact on the Kintetsu Group. Should
employees become infected en masse, business execution
could become difficult. Even in a post-pandemic world, its
effect on the structure of society and behavior remains,
and this could lead to a drop in demand for commuting andbusiness trips, an expansion of online businesses, and otherpermanent changes.

We will prioritize infection prevention, and preventing
its spread, and will strive to make structure reforms ineach of our business areas to respond to the social andenvironmental environment, and to changes in behavior.

Changes in the costprice of freight/
transport

In our international logistics business, for air freight, a returnto pre-pandemic flight numbers is slow, particularly forlong-distance flights. For sea freight, container shipping
is still in chaos. As a result of these factors, the cost priceof freight and transport by both air and sea have changed
dramatically, and the situation remains unstable. In response,
for air freight, we have been using charter flights to securetransportation space, but charter contracts must be bought
up in fixed amounts, so if transportation demand were todrop below expectations, this could adversely affect ourbusiness performance. Labor shortages are also becoming
apparent in the logistics industry, and this situation could leadto major changes in the costs of transportation and cargohandling. If these purchasing costs exceed expectations, it
could become difficult to receive reasonable amounts from
customers. In such a case, our business performance andfinancial situation could be adversely affected.

As well as strengthening cooperative relating with airline
companies, marine transport companies, trucking
companies, and others in the industry, we will work torequest appropriate amounts from customers to respondto changes in the environment. Through these and othermeasures, we will respond to changes in the businessenvironment quickly and flexibly, and work to minimize theimpact on our business performance.

Shrinking populationin the area, further
motorization,competition with rivals

Low birthrates, the aging of society, and the movement of the
population to urban centers mean that the population in the
Kintetsu operational area—particularly the population that
commutes to work or school—is shrinking, and is predicted
to continue dropping in the future. The development of theexpressway network, a direct rival to our railway lines, is also
propelling the motorization of society. Moreover, in somelines, we are competing with other railway companies. Thissituation has the possibility of reducing our revenue from therailway, merchandise sales, and real estate business areas.
The tourist attractions along our lines are in competition with
tourist attractions elsewhere, so if the number of tourists
decreases, this might impact on the railway business, butalso revenue in the hotel and leisure business area. Also, inareas such as Osaka, Nara, and Mie, the opening of newstores or renovations of existing stores for rival department
stores or other types of retailers could adversely affectrevenue in the merchandise sales business area.

As well as working to utilize the abundant tourism resourcesof our operational area and to enhance our products andservices to meet customer and local needs, we will develop
real estate in areas where we are competitive, new businessmodels using new technologies, and effective management
frameworks. We will proactively implement these measuresand use cooperation between group companies tostrengthen the group’s overall business foundations.

3

4

Kintetsu Group Integrated Report 2022

Kintetsu Group’s
Value Creation

In addition to making structural reforms to lower our breakeven point, we will make our business portfolio more resilient
to risk by developing and strengthening B-to-B business.
This will allow us to quickly and flexibly respond to changes
in the business environment or customer trends or needs,
and to enhance our business performance going forward.

Business Strategies

1

In our transportation, real estate, merchandise sales, andhotel and leisure business areas, our customers are general
consumers. As such, there are a number of factors that
could have an adverse effect on our business performance,
including financial influences (the economy, personal
consumer behavior, etc.) and the influence of the weather
Changes in the(cool summers, warm winters or other abnormalities). These
economy, personal
business areas could also be impacted by fewer foreign
consumer behavior, the visitors to Japan if there were to be a natural disaster, badinternational situation,
weather, or if the international were to deteriorate (terrorism,etc.
war, etc.).
Performance in our international logistics business too
could be adversely affected by a range of factors, including
economic trends inside and outside Japan, changes indemand for transportation among our client companies,
political or other social factors, natural disasters, badweather, terrorist attack, regional warfare, or pandemic.

Overview ofthe Kintetsu GroupCountermeasures

Initiatives for Materiality

Details

Corporate Information

Major risk

Messages fromthe Top Management■ Business and other risks94

Major risk

5

There are several difficult events that severely damage
the Kintetsu Group and require large sums of money torecover from. Such potential events include a Nankai Troughearthquake or similar; any tsunami that might result; fires or
terrorist attacks at major train terminals or similar; damage
to large bridges, railway tunnels or tracks or other railway
facilities; trouble with online ticket systems for limited express
trains; or any other damage to hotels, department stores,
leased facilities, leisure facilities, etc. Since the group’s
Large-scale disaster or management resources are focused on its operational
incident
area—centered on Osaka, Nara, and Mie prefectures—
so an earthquake in the Nankai Trough in particular could
have a serious impact on the Kintetsu Group’s businessperformance.
Also, should a large-scale incident occur, recovery anddamage compensation would require enormous outgoings,
which could also have a serious impact on our businessperformance. In the railway business, incidents caused byexternal factors, such as entry onto railway crossings when
the gates are down, could impede train operations.

Countermeasures

We believe that as a public transportation provider, our firstpriority is to ensure the safety of our customers, in our railway,
bus service, and other transportation businesses, whichcarry millions of customers. As a result, we not only train anddrill employees, in the railway business we also continuously
make strategic investments, such as introducing, updating,and strengthening equipment to maintain driving safety.
We also promote anti-seismic reinforcement and disasterprevention measures in each of our businesses, as wellas doing all we can to ensure safety in all its forms. We
periodically review the business continuity plans we havefor large-scale earthquakes, and are pushing forward withfurther developing a crisis management system so we areprepared should a large-scale disaster or incident occur.

Exchange rate
fluctuations

To avoid the risk of exchange rate fluctuations in foreigncurrency obligations/liabilities and planned transactions,
As our international logistics and travel businesses have
we use methods such as forward exchange agreements
expanded worldwide, fluctuation in the value of currencies
and foreign currency swaps. During transactions, ourin different areas could impact our business performance
execution and management is in line with our internal control
and financial situation.
regulations, and our policy is not to conduct speculativetransactions or those with a high leverage effect.

Climate change

Of the physical risks presented by climate change, train
operations may become impossible due to acute risks
such as wind and water damage or landslides resulting
from powerful typhoons or heavy rainfall. It could also
lead to reservations for travel or hotels being canceled,or people avoiding going out for shopping or other leisureactivities. Chronic risks include the potential for electricity
usage and energy bills to go up through greater use of airconditioning or similar in extremely hot weather. There arealso transitional risks, such as strengthening of laws andregulations, changes in consumer behavior in terms oftravel or daily life, and a greater need to invest in large-scaleequipment or review our business structure.

In line with the TCFD’s framework, we are moving forwardwith climate-related risk management, strategic measures,and information disclosure via our integrated reports.
In preparation for increasingly severe disasters, we arepromoting disaster preparedness and safety measureson our railways, and based on the Kintetsu Group
Environmental Targets—with the aim of achieving carbon
neutrality by 2050—we are advancing efforts to save energy
and resources, and are striving to tackle climate change.

Worker shortages/
soaring pays

The railway business and many of the Kintetsu Group’s otherbusiness areas are labor intensive, and as such being able
to secure stable human resources is imperative. However,Japan’s low birthrates and aging society mean that theworking-age population will continue to drop. In the future, if
we are unable to secure sufficient human resources, or if ourtalented personnel leave, it could affect the running of ourbusinesses. Also, as competition to recruit becomes more
intense, wages are going up and if they keep going up in the
future, it may impact on our income and outgoings.

We are endeavoring to continue securing personnel by
expanding employment classifications and geographic
areas, and by rationalizing and systemizing tasks, etc., wewill work to create a more effective management framework.

9

Legal/regulatory risks

In accordance with the Railway Business Act (Act No. 92
of 1986), setting or changing passenger fares requires
approval from the Minister of Land, Infrastructure, Transport
and Tourism, and so there is the chance that setting orchanging passenger fares will be limited.
In our business activities, we face various types of laws
We gather information relating to laws and regulations
and regulations, and depending on revisions to these, they
inside and outside Japan, and are working to minimize any
could impact on our business performance. While we innegative impact on the group’s business information.
the Kintetsu Group work hard to prioritize legal compliancein our business, in the unlikely event that we did not act
appropriately in regard to a law or regulation, or if there
were to be a serious breach, our sales activities could be
restricted or a fine imposed, which could adversely affect
the group’s business performance or levels of trust.

10

In the merchandise sales and hotel and leisure businessareas, most of our customers are general consumers. As
such, if we were to lose trust because of a problem with
Loss of trust due toquality or food safety/labeling for the products we sell, we
product quality or foodwould lose customers, which in turn could lead to reduced
safety or labeling
revenue, and this alongside compensation payouts, legal
fees, and other costs could adversely affect our businessperformance.

6

7

8

95

Details

Kintetsu Group Integrated Report 2022

We verify compliance with relevant laws and regulations;check quality and hygiene management, as well as foodlabeling; periodically carry out training for employees;
ensure product quality and food safety; and, work to label
food appropriately.

15

16

17

Each business is striving to keep down cost prices, while
each company and the group in unison, when necessary,band together to negotiate with suppliers about the priceof resources.

Changes in interest
rates for procuring
funding

Rapid changes in the economy or chaos in financial
markets could lead to market rates rising or rapidly
dropping in the future. It could also result in credit rating
agencies lowering their ratings. In either case, interest
We are working to lower our consolidated interest-bearing
rates on procured funding could rise and have an adverse
debt balance, and we are working to fix long-term interest
effect on our business performance. At the end of fiscal
rates to reduce any impact on changes in interest rates.
2021, our balance of consolidated interest-bearing debt
totaled ¥1,060,088,000,000, so our interest expenses andcorporate bond interest on non-operating expenses forfiscal 2021 totaled ¥7,386,000,000.

Changes in stock
pricesChanges in stock prices could cause the price of investments
in securities with market values to fall, which would adversely
affect our business performance. We also use part of ourpension assets (including our retirement benefit trust) toinvest in listed stocks, so dropping stock prices could leadto a rise in retirement benefit expenses or contributions.

We periodically work to keep up to date with the market
prices for investments in securities, and to control risks.
For our use of pension assets, we take on advice fromoutside experts, and conduct regular reviews to verify ourinvestments.

Changes in lifestyles
due to the evolutionof digital information
technologies

The evolution of IT is leading to an environment where
working from home or attending meetings online is taking
root, and the COVID-19 pandemic has accelerated thistrend, reducing the number of people commuting or making
long-distance business trips using public transportation.
Going forward, if this trend were to continue, passenger
revenue from trains and buses, as well as real estate leasing
revenue from offices and other buildings, could decrease.

We are developing rolling stock where the aim of riding thetrain is the journey itself, and working to increase the numberof tourists in the area by further enhancing the appeal of
tourist attractions along our lines, such as in Ise-Shima or
Nara. Moreover, we are developing our real estate businessin areas where our competitive strengths lie, and throughfacility renovations we will maintain and raise the value of
our assets. Through these measures, we will aim to increase
the number of visitors to the Kintetsu operational area, andendeavor to provide services that are focused on the newlifestyles that are becoming established.

Information leaks, etc.

Through our activities—selling season tickets, gathering
information on card members, and sales in the hotel,
department store, and travel businesses—we hold customers’
personal information and other confidential information. In theunlikely event of unauthorized access to that information, or its
loss, falsification, leaking, or disappearance, we might have to
pay out compensation or similar, and the resulting loss of trust
could have an adverse effect on our business performance.
Also, there is a risk that our systems could become unusable
for a long period of time, or a similar unexpected incident
occur, as a result of worse-than-expected computer systemdamage, communications failures, computer viruses or cyberattacks—which in recent years have become increasingly
ingenious. In such a case, this could have an adverse effecton our business performance.

To prevent any leaks of information, each group company
is responsible for ensuring information security andmaintaining strict control of information, in accordance withlaws, regulations, the Kintetsu Group Information Security
Basic Policy, and internal regulations each company sets
individually. We also work to strengthen our information
security framework in terms of both hardware and software,to prevent unauthorized access or computer viruses.

Corporateacquisitions, etc.

The companies that make up the Kintetsu Group, with theaim of raising their competitiveness toward future growth,
engage in corporate buyouts and similar measures, and willcontinue to do so in future. Should an acquired company’s
performance fall short of predictions made at the time ofpurchase, or where it is determined to have not produced
the results expected of it, due to changes in the businessenvironment or a lack of competitiveness, the group company
that acquired it could have to record it as goodwill or other
impairment loss. This could impact the group’s businessperformance. In May 2015, Kintetsu World Express, Inc.
(KWE)—at that time an equity-method affiliate—acquired
the global logistics company APL Logistics Ltd, and in July
2022, Kintetsu Group Holdings made KWE a consolidated
subsidiary by making a tender offer for all of the company’s
issues shares. As of the end of September 2022, our noncurrent assets related to the acquisitions above totaled¥263,693,000,000 (including ¥109,114,000,000 of goodwill)on our consolidated financial statements. However, as the
allocation of the acquisition cost has not been completed,this goodwill amount is a provisional calculation.

In line with the scale, etc., of individual acquisitions, theBoard of Directors, as well as various decision-making
bodies at each company, have been carrying out sufficientdeliberations and due diligence into investment candidates
to promote corporate acquisitions, etc. At the same time,
we will work to raise the asset efficiency of acquirers andmaximize their profits.

Messages fromthe Top Management

Soaring prices ofresources such as oil

Rising resource prices—for resources such as crude oil—would have a massive impact on our railway, bus service,taxi service, and international logistics businesses. Equally,rising construction costs for condominiums in the real estatebusiness, or rising energy costs for our restaurant, hotel, or
department store businesses, could lead to a drop in profits.

Overview ofthe Kintetsu GroupTo do all we possibly can to avoid the effects of changing land
prices, we are replacing existing assets we own, promoting
business development in areas where we possess competitive
strengths, and encouraging the development of new highadded-value properties. At the same time, by effectively
utilizing largely unused land, we are working to improve thebusiness performance of our real estate business.

Kintetsu Group’s
Value Creation

14

Drop in land prices,etc.

Our business performance could be adversely affectedby sluggish sales of land for sale or condominiums, lower
revenues from leased real estate, or evaluation losses forland and buildings for sale or fixed assets, all resulting froma slump in the real estate market and dropping land prices.

Business Strategies

13Countermeasures

Initiatives for Materiality

12

Details

Corporate Information

11

Major risk

Kintetsu Group Integrated Report 2022

96

■ Business continuity plans■ Highest BCM rating rank from the DBJ

With the aim of improving our ability to respond to extraordinary
circumstances, we formulate business continuity plans (BCPs)
to deal with such serious risks as major earthquakes in the
Nankai Trough or elsewhere, typhoons or other weather-related
damage, or the COVID-19 pandemic or other infectious disease.
These plans, which aim to restore business operations as swiftly
as possible, set out in advance the measures required to returnthe business to normal operations, the time this is expected totake, and which departments will take the lead.

In March 2022, we received the highest-rank BusinessContinuity Management (BCM) rating from the Development
Bank of Japan (DBJ) for the tenth consecutive year forhaving particularly exceptional initiatives toward disaster
preparedness and business continuity. The BCM rating isan evaluation of such initiatives and a means of recognizing
exceptional companies.

■ Extraordinary Circumstances Response

Regulations

DBJ BCM格付

2 02 1

Potential extraordinary circumstances are myriad, including
large-scale incidents, natural disasters such as big earthquakes,
widespread fires, terrorist attacks or other damage incurred fromthird parties, or a new infectious disease. We have set out what wewould do should such an event occur—how we would respond to
the severity and circumstances, how to respond as a group, how
we would establish a countermeasures headquarters, etc.—in our
Extraordinary Circumstances Response Regulations.

■R isk management indicators and targets (KPIs)
Company

Indicator

FY2021 results

Target year

Target

Kintetsu Railway

Business Continuity Management(BCM) rating (Development Bankof Japan)Highest rank

FY2025Maintaining the highest rank

4 Supply Chain Management97■ Action guidelines for suppliers, etc.

■ Partnership Building Declaration

The Kintetsu Group has expanded into a range of different
businesses inside and outside Japan, and we believethat sharing awareness of CSR themes—such as legal
compliance, respect for human rights, and environmental
conservation—and being sincere and acting responsibly areof vital importance.
Kintetsu Railway Co., Ltd. has formulated the Fundamental
Policy on Buying Activities and the Requests for Business
Partners, for the companies it works with. It also carries out
periodic questionnaires and, when necessary, interviews
and company visits to check conditions on the ground andpromote improvements.
In 2020, the KWE Group formulated its KWE Vendor Codeof Conduct. The group also set “Social Impacts in the Supply
Chain” as one of its areas of materiality to promote responsible
procurement, and going forward will further strengthen its ties
with business partners.

In March 2022, we announced our Partnership Building
Declaration. The aim of the declaration is to advance cooperationand mutual prosperity between companies and supply chain
partners and business operators looking to create value, and tobuild new partnerships. In addition to Kintetsu Group Holdings, sixof our consolidated subsidiaries have also made the declaration.
As well as working to support efficiency enhancements at
suppliers, such as by promoting electronic business transactions,by understanding the situation throughout the entire supply chain
and sharing information, we are contributing to the realization of aprosperous society through co-creation.

Kintetsu Railway Co., Ltd.
Fundamental Policy on Buying Activities
https://www.kintetsu.jp/shizaichotatsu/basicpolicy.html
Requests for Business Partners
https://www.kintetsu.jp/shizaichotatsu/onegai.html

Kintetsu World Express, Inc.
KWE Vendor Code of Conduct
https://www.kwe.com/about/whoweare/policy/
vendor-code-of-conduct/

Kintetsu Group Integrated Report 2022

Social contribution activities

The Kintetsu Group has grown with its regions, particularly along its lines, and runs many different forms of social contribution
activities.
Example activities

Contributing to the region

Workplace experiences/tours, school visits, clean-up activities, safety
patrols for kids going to and from school, providing venues for regional
community volunteer activities, etc.

Volunteer activities

Participation in and sponsorship of regional events and sports events,
support for kids’ cafeterias

Supporting recovery after
disasters

Donations and other contributions, fund-raising activities, campaigns torecover travel demand

Overview ofthe Kintetsu Group

Example workplace tour: Kindergarten
kids tour of Kokudo Kyushi Ferry Co., Ltd.

Theme

Messages fromthe Top Management■ Giving back to society in a wide range of areas

Kintetsu Group Holdings, Kintetsu Railway Co., Ltd. and other companies havevolunteering leave systems in place.

We contribute to culture and art, such as by collecting and displaying artworks at The Museum Yamato Bunkakan and otherlocations, and other activities, including caring for art and culture properties.

The museum has gathered and displays around 2,000 pieces ofOriental art, including 4 national treasures, one of which is the
Matsuura screens.

Shouhaku Art Museum

The museum collects and displays artworks with a particularfocus on the traditional Japanese-style paintings of three
generations of the distinguished Uemura painting dynasty—
Shoen, Shoko, and Atsushi.

ABENO HARUKAS Art
MuseumWith varied exhibitions, this urban art museum allows anyone toeasily enjoy art and culture.

Kinki Cultural Association& Yamato Cultural

It also holds on-site lectures at archaeological sites or historic
shrines and temples, as well as public lectures.

Shouhaku Art Museum■H anazono Kintetsu Liners are giving back to sports and the region
Hanazono Kintetsu Liners, a rugby team that plays in Japan Rugby League One, has been helping to spread rugby by visiting
schools and giving lessons, and is fostering dreams among the children, sharing the wonder and emotion of sports, and helping
them to grow up healthy. The team also interacts with the people of the region in many different ways, and is working to be loved
by the community.
They have collaborated with Osaka
Prefecture and the city of Higashiosaka,
and in fiscal 2021 took part in morethan 50 school lessons or events. They
have also provided chances to try rugby,
lectures, and agricultural experience
programs for adults.

Kintetsu Group Integrated Report 2022

Initiatives for Materiality

The Museum Yamato
Bunkakan

Business Strategies

Details

Corporate Information

Facility/Organization

Kintetsu Group’s
Value Creation■ Promotion of art and culture98Corporate Officers (as of September 30, 2022)

99

External Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

Michiko Inoue

Kazumi Suzuki

Masahiro Maeda

External Director

External Director

External Director

External Director

Takashi Nagaoka

Toshiko Katayama

Masanori Yanagi

Kunie Okamoto

Kintetsu Group Integrated Report 2022

Messages fromthe Top Management
Overview ofthe Kintetsu Group
Kintetsu Group’s
Value Creation
Business Strategies
Initiatives for Materiality
Director, Managing
Executive Officer

Director, Managing
Executive Officer

Audit & Supervisory
Board Member

Audit & Supervisory
Board Member

Nobu Hayashi

Akihiko Matsumoto

Kunimitsu Izukawa

Hirohisa Tabuchi

Hitoshi Tada

Representative Director,
Chairman of the Board andGroup CEO

Representative Director,
President

Director, Senior Managing
Executive Officer

Director, Senior Managing
Executive Officer

Director, Managing
Executive Officer

Tetsuya Kobayashi

Toshihide Ogura

Masaaki Shirakawa

Takashi Wakai

Shiro Hara

Kintetsu Group Integrated Report 2022

Corporate Information

Director, Managing
Executive Officer

100Corporate Officer Profiles (as of September 30, 2022)
Directors

Ext ... External Corporate Officer

Ind ... Independent Corporate Officer

Tetsuya Kobayashi

Toshihide Ogura

Masaaki Shirakawa

Takashi Wakai

Chairman of the Board and Group CEO(Representative Director)

President(Representative Director)

Apr.1968
Jun.2001
Jun.2003
Jun.2005

Apr.1978 Joined the Company
Jun.2009 Officer, the Company
Jun.2012 Director, Managing Executive
Officer, the Company
Jun.2015 Director, Senior Managing
Executive Officer, the Company
Jun.2016 President, Mie Kotsu Group
Holdings, Inc.
Jun.2020 President, the Company(present position)

Director, Senior Managing Executive
Officer
Responsibilities: Business Strategy Div.

Director, Senior Managing Executive
Officer
Responsibilities: Corporate Strategy Div.
and Accounting Div.

Joined the Company
Director, the Company
Managing Director, the Company
Senior Executive Director,
the Company
Jun.2007 President, the Company
Apr.2015 Chairman of the Board,
the Company
Jun.2020 Chairman of the Board andGroup CEO, the Company(present position)

Apr.1982 Joined the Company
Jun.2014 Officer, the Company
Jun.2016 Director, Managing Executive
Officer, the Company
Jun.2019 Director, Senior Managing
Executive Officer, the Company(present position)

Apr.1983 Joined the Company
Jun.2016 Director, Managing Executive
Officer, the Company
Jun.2021 Director, Senior Managing
Executive Officer, the Company(present position)

Important positions concurrently held

Director,The Kansai Electric Power
Company Incorporated

Shiro Hara

Nobu Hayashi

Akihiko Matsumoto

Kunimitsu Izukawa

Director, Managing Executive Officer
Responsibilities: Human Resources Div.

Director, Managing Executive Officer
Responsibilities: Secretarial Div. andTokyo OfficeDirector, Managing Executive Officer
Responsibilities: Administrative
General Affairs Div.

Director, Managing Executive Officer
Responsibilities: Corporate Strategy Div.

Apr.1984 Joined the Company
Jun.2018 Officer, the Company
Jun.2021 Director, Managing Executive
Officer, the Company(present position)

Apr.1984 Joined the Company
Apr.2022 Managing Executive Officer,
Kin-Ei Corp.
Jun.2022 Director, Managing Executive
Officer, the Company(present position)

Masanori Yanagi

Toshiko Katayama

Apr.1984 Joined the Company
Jun.2019 Officer, the Company
Jun.2020 Director, Managing Executive
Officer, the Company(present position)

Kunie Okamoto
External Director

Ext

Ind

Jun.1969 Joined Nippon Life Insurance
Company
Apr.2005 President, Nippon Life Insurance
Company
Jun.2005 External Director, the Company
Jun.2006 Retired as External Director,
the Company
Jun.2010 External Director, the Company(present position)
Apr.2011 Chairman, Nippon Life Insurance
Company
Apr.2018 Director and Executive Advisor to
the Board, Nippon Life Insurance
Company
Jul.2018 Executive Advisor to the Board,
Nippon Life Insurance Company(present position)
Important positions concurrently held

External Director

Ind

External Director

Ext

Takashi Nagaoka
Ind

Apr.1974 Joined Japan Development Bank
Jun.2011 Deputy President,Development
Bank of Japan Inc.
Jun.2015 President and CEO,Development Bank of Japan Inc.
Jun.2018 Retired as President and CEO,Development Bank of Japan Inc.
Aug.2018 Chairman, The Japan
Economic Research Institute(present position)
Jun.2019 External Director, the Company(present position)

Apr.1988 Registered as an attorney at law
Apr.1993 Established Katayama Toshiko
Law OfficeJul.2005 Established Katayama, Kuroki
and Hiraizumi Law Office(currently Katayama andHiraizumi Law Office)(present position)
Jun.2020 Audit & Supervisory Board
Member, the Company
Jun.2021 External Director, the Company(present position)

Important positions concurrently held

Important positions concurrently held

Director, Fukoku Mutual Life Insurance
Company
Director, Tobu Railway Co., Ltd.
Director, Sumitomo Mitsui Trust Holdings, Inc.

Director, Sumitomo Life Insurance Company

Director, Hotel Okura Co., Ltd.

101

Ext

Kintetsu Group Integrated Report 2022

Apr.1987 Joined the Company
Sep.2020 Managing Executive Officer,
KNT-CT Holdings Co., Ltd.
Jun.2022 Director, Managing Executive
Officer, the Company(present position)

External Director

Ext

Ind

Apr.1976 Joined The Mitsubishi Bank, Ltd.
Jun.2011 Deputy President, The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Jun.2014 President & CEO, Mitsubishi UFJ
Securities Holdings Co., Ltd.
Jun.2014 President & CEO, Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd.
Jun.2015 Member of the Board of
Directors, Deputy Chairman,
Mitsubishi UFJ Financial Group, Inc.
Apr.2018 Member of the Board of
Directors, Chairman, Mitsubishi
UFJ Securities Holdings Co., Ltd.
Apr.2022 Senior Advisor, Mitsubishi UFJ
Securities Holdings Co., Ltd.
(present position)
Jun.2022 External Director, the Company(present position)
Important positions concurrently held

Director, ELECOM Co., Ltd.

Masahiro Maeda

Audit & Supervisory Board Member(full-time)

External Audit & Supervisory
Board Member

Apr.1977
Jun.2008
Jun.2011
Jun.2012

Apr.1982 Joined the Company
Nov.2016 Director, Managing Executive
Officer, Kintetsu Railway Co., Ltd.
Jun.2019 Audit & Supervisory Board
Member (full-time), Kintetsu
Railway Co., Ltd.
Jun.2020 Audit & Supervisory Board
Member (full-time),
the Company (present position)

Apr.1987 Associate Professor,
Department of Law,
Kyoto University
Apr.1992 Associate Professor, Graduate
School of Law, Kyoto University
Apr.1996 Professor, Graduate Schoolof Law, Kyoto University(present position)
Jun.2014 External Audit & Supervisory
Board Member,the Company (present position)

External Audit & Supervisory
Board Member

Ind

Ext

Ind

Apr.1994 Associate Professor, Faculty ofBusiness and Economics,
Kindai University
Apr.1995 Associate Professor, School ofBusiness Administration,
Kobe University
Apr.1999 Associate Professor,
Graduate School of Business
Administration, Kobe University
Apr.2012 Professor, Graduate School ofBusiness Administration,
Kobe University
Jun.2019 External Audit & Supervisory
Board Member, the Company(present position)
Apr.2021 Professor, Kobe University
Center for Social Systems
Innovation (present position)
Important positions concurrently held

Business Strategies

Director, Nozaki Insatsu Shigyo Co., Ltd.

Michiko Inoue
External Audit & Supervisory
Board Member

Ext

Ind

Group Officers

Initiatives for Materiality

Mar.2001 Associate Professor, Division ofInformation Science, Nara
Institute of Science andTechnology
Apr.2011 Professor, Division of Information
Science, Nara Institute of
Science and Technology
Apr.2018 Professor, Graduate School of
Science and Technology,
Nara Institute of Science andTechnology (present position)
Jun.2021 External Audit & Supervisory
Board Member, the Company(present position)

Senior Officer

Takashi Tsuji(Representative Director and President,
Kintetsu Railway Co., Ltd.)

Takahisa Kurahashi(Representative Director and President,
Kintetsu Real Estate Co., Ltd.)

Takashi Nishimura(Representative Director and President,
Kintetsu Miyako Hotels International, Inc.)

Nobutoshi Torii(President & CEO, Kintetsu World Express, Inc.)

Akio Hata(Responsibilities: Audit Div.)

Corporate Information

Joined the Company
Officer, the Company
Managing Director, the Company
Director, Senior Managing
Executive Officer, the Company
Jan.2015 Senior Executive Vice President,
Kintetsu Division Preparation
Company (currently Kintetsu
Railway Co., Ltd.)
Jun.2018 Audit & Supervisory Board
Member (full-time),
the Company (present position)

Ext

Kazumi Suzuki

Overview ofthe Kintetsu Group

Hitoshi Tada

Audit & Supervisory Board Member(full-time)

Kintetsu Group’s
Value Creation

Hirohisa Tabuchi

Messages fromthe Top Management

Audit & Supervisory Board Members

Officers
Michiyasu Masuda(Responsibilities: Secretarial Div., Corporate
Strategy Div., and Business Strategy Div.)

Hirokazu Kambayashi(Public Relations Div.)Jun Kobayashi(Business Strategy Div. and Taipei Office)Kintetsu Group Integrated Report 2022

102

Financial Data
1. Summary of business results

Millions of yen

FY2017FY2018FY2019FY2020

FY2021

Operating results
Operating revenue

1,222,779

1,236,905

1,194,244

697,203

691,512

Operating profit (loss)

64,64367,77949,380(62,115)

3,864

Ordinary profit (loss)

61,323

67,12947,224(41,959)

30,658

Profit (loss) attributable toowners of parent

29,61435,962

20,561(60,187)

42,755

Depreciation

52,53852,19653,92454,77951,269

Capital expenditures

54,05778,22968,90755,207

26,547

EBITDA (operating profit +depreciation)

117,182

119,975

103,304(7,336)55,134

Cash flows fromoperating activities

88,798102,319

58,266(25,470)

57,548Cash flows frominvesting activities(50,796)(64,148)(57,440)(46,013)44,264

Cash flows fromfinancing activities(36,891)(38,905)(12,952)

107,897(102,918)

Cash and cash equivalents
at end of period

52,76352,08939,78776,32175,765

1,914,480

1,936,417

1,891,300

1,955,048

1,895,770

Equity366,410382,266

376,978

320,595

378,621

Retained earnings

75,734

102,039

110,288

40,82980,555Interest-bearing debt

1,080,230

1,055,904

1,058,274

1,182,219

1,060,088

Borrowings

769,150

736,264

713,774

792,571

707,144

Bonds payable

311,080

319,640

340,500

344,648

312,944

－

－

4,000

45,00040,000Operating profit to revenue
from operations (%)

5.3

5.5

4.1

(8.9)

0.6

Ordinary profit to total
assets (%)

3.2

3.5

2.5

(2.2)

1.6

Profit to equity (%)

8.4

9.6

5.4

(17.3)

12.2

Equity ratio (%)

19.1

19.7

19.9

16.4

20.0

Ratio of interest-bearing
debt to EBITDA (times)

9.2

8.8

10.2

－

19.2

Earnings per share (yen)155.74

189.17108.16(316.62)224.81

Net assets per share (yen)1,927.22

2,010.87

1,983.12

1,686.55

1,990.85

Dividends per share (yen)

50.00

50.00

50.00

0.00

25.00

190,662

190,662

190,662

190,662

190,662

85

82

81

80

71

Cash flows

Financial position
Total assets

Commercial papers
Financial indicators

Per share information (yen)

Other
Issued shares(thousands of shares)
Consolidated subsidiaries(companies)

Note: “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied for FY2021 and thereafter.

103

Kintetsu Group Integrated Report 2022

2. Consolidated financial statements
1. Consolidated balance sheets

FY2017

Millions of yen

FY2018FY2019FY2020

FY2021

282,328

289,716

257,302331,123

331,569

Non-current assets

1,628,999

1,643,828

1,631,014

1,621,243

1,561,947

Property, plant and equipment

1,394,508

1,407,403

1,404,868

1,358,710

1,289,093

Intangible assets

11,912

15,755

17,227

14,963

13,958Investments and other assets

222,578

220,669

208,918

247,568

258,895

Deferred assets

3,152

2,873

2,983

2,681

2,252

1,914,480

1,936,417

1,891,300

1,955,048

1,895,770

Current liabilities

559,904

576,515

516,707585,804

504,045

Non-current liabilities

960,337

946,851

969,296

1,030,748

969,964

1,520,242

1,523,367

1,486,004

1,616,553

1,474,009

Shareholders’ equity

262,829

289,027

297,241

227,766

267,809

Share capital

126,476

126,476

126,476

126,476

126,476

Capital surplus

61,866

61,86561,87761,884

61,927Retained earnings

75,734

102,039

110,288

40,82980,555

Treasury shares(1,248)(1,353)(1,401)(1,424)(1,150)

Accumulated othercomprehensive income

103,581

93,23879,737

92,829110,812

Total assets
Liabilities

Total liabilities

Overview ofthe Kintetsu Group

Current assets

Messages fromthe Top Management

Assets28,317

17,89943,139405,295

338,494

421,760

1,914,480

1,936,417

1,891,300

1,955,048

1,895,770
Millions of yen

2. Consolidated statements ofincomeFY2017FY2018FY2019FY2020Business Strategies

30,784
413,050

FY2021

Operating revenue

1,222,779

1,236,905

1,194,244

697,203

691,512

Operating expenses

1,158,135

1,169,125

1,144,864

759,318

687,647

Operating profit (loss)

64,64367,77949,380(62,115)

3,864

Non-operating income

9,559

11,533

9,065

31,37436,945

share of profit of entities
accounted for using
equity method

5,976

7,140

4,848

11,722

21,851Non-operating expenses

12,87912,183

11,22011,218

10,152interest expense

9,485

8,611

7,992

7,864

7,386

Ordinary pro­fit (loss)

61,323

67,12947,224(41,959)

30,658Extraordinary income

7,310

9,061

6,962

7,055

40,952Extraordinary losses

18,13920,66918,112

48,601

19,472

Profit (loss) before income taxes

50,49455,521

36,075(83,505)

52,138

Income taxes–current

11,88916,542

11,438

1,510

6,528

Income taxes–deferred

7,048

(7)

5,664

(14,459)

2,605

Profit (loss)

31,55638,986

18,971(70,556)

43,003

Profit (loss) attributable tonon-controlling interests

1,942

3,024

(1,589)(10,368)

247

Profit (loss) attributable toowners of parent

29,61435,962

20,561(60,187)

42,755Initiatives for Materiality

Total liabilities and net assets

27,828394,238

Corporate Information

Non-controlling interests
Total net assets

Kintetsu Group’s
Value Creation

Net assets

Note: “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied for FY2021 and thereafter.

Kintetsu Group Integrated Report 2022

104

Financial Data
3. Segment information

Millions of yen

FY2017

Operating revenue

FY2018FY2019FY2020

FY2021

1,222,779

1,236,905

1,194,244

697,203

691,512

Transportation

228,186

226,754

221,711150,218

158,907

Railways

158,089

156,444

152,724

99,234

107,006

Bus services

34,677

34,63633,721

22,60525,065

Taxi services

11,497

11,537

11,089

7,520

7,854

Maintenance of railway
facilities

27,65528,347

26,71022,64017,110

Other transportationrelated business

22,032

21,42622,226

14,975

13,910Real estate

149,565

164,245

161,248

142,965

184,984

Real estate sales

68,30877,72575,59760,13470,697

Real estate leasing

45,84947,37447,71347,404

79,345

Real estate management

40,96643,40843,58340,29939,414

395,817393,670

392,796

313,110

188,246

Department stores

281,817282,220

283,047

218,149

97,534

Stores and restaurants

115,286

112,647

111,039

95,67390,712478,669

481,818

449,276

114,177

166,681

Merchandise sales

Hotel and Leisure
Hotels61,18357,38951,55920,69820,216

Travel agency

405,172

411,821385,362

87,889139,957

Cinema

3,544

3,618

3,882

2,857

3,001

Aquarium

9,015

9,175

8,626

2,732

3,506

16,38018,174

19,11018,66526,884

Other

Note: “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied for FY2021 and thereafter.

Millions of yen

FY2017FY2019FY2020

FY2021

Operating profit (loss)

64,64367,77949,380(62,115)

3,864Transportation

29,20632,943

27,686(24,670)(2,721)

Real estate

16,297

18,69817,91914,83329,346Merchandise sales

7,080

7,783

5,152

(4,668)(1,513)

Hotel and Leisure

9,627

6,185

(3,693)(49,242)(21,685)

Other

1,611

1,491

1,581

1,453

1,708

5.3

5.5

4.1

(8.9)

0.6

Operating profit to revenue
from operations (%)
Transportation

12.8

14.5

12.5

(16.4)(1.7)

Real estate

10.9

11.4

11.1

10.4

15.9

Merchandise sales

1.8

2.0

1.3

(1.5)

(0.8)

Hotel and Leisure

2.0

1.3

(0.8)

(43.1)(13.0)

Other

9.8

8.2

8.3

7.8

6.4

1,914,480

1,936,417

1,891,300

1,955,048

1,895,770

Transportation

953,318

952,451

940,259

953,538

934,611

Real estate584,259594,594596,264

605,520547,866

Merchandise sales

158,994

160,445

160,826

152,576

145,997

Hotel and Leisure

186,913

198,233

146,158

115,938

141,276

Other

25,47625,18025,55324,921

48,681

Depreciation

52,53852,19653,92454,77951,269Transportation

27,263

27,18527,741

28,42027,844

Real estate

11,42911,55812,146

12,55011,560

Merchandise sales

7,165

7,049

7,606

7,536

7,550

Hotel and Leisure

4,168

4,392

4,478

4,337

2,361

Other

1,836

1,728

1,630

1,688

1,717

Capital expenditures

54,05778,22968,90755,207

26,547

Transportation

24,86827,97028,91530,46912,606

Real estate

15,58334,927

19,912

13,9495,215

Merchandise sales

6,038

7,739

9,699

4,736

5,455

Hotel and Leisure

5,526

6,004

8,792

3,876

2,271

Other

1,612

1,254

1,230

2,049

1,117

Total assets

105

FY2018

Kintetsu Group Integrated Report 2022

Kintetsu Group Companies(as of September 30, 2022)●：Consolidated subsidiaries:

200
43▲：Equity-method affiliates:
13△：Non-equity-method affiliates:
8○：Unconsolidated subsidiaries:

Kintetsu Group companies total: 265 (incl. Kintetsu Group Holdings)

International logistics● Kintetsu World Express, Inc.

● Kintetsu Railway Co., Ltd.

Other ● 129 companies ○ 1 company ▲ 8 companies● Event & Convention House, Inc.

Merchandise sales● KINTETSU INTERNATIONAL EXPRESS

Merchandise sales● KNT-CT IT Solutions Co., Ltd.

● Kintetsu Department Store Co., Ltd.

Other international travel agencies, etc.
● 7 companies ▲ 1 company(U.S.A), INC.

○ Yokkaichi Asunarou Railway Co., Ltd.

● Kintetsu Bus Holdings Co., Ltd.
● Kintetsu Bus Co., Ltd.
● Nara Kotsu Bus Lines Co., Ltd.
● Bocho Bus Company Limited● KITANIPPON KANKO BUS Co., Ltd.
○ Nara Kanko Bus Co., Ltd.

● KINTETSU RETAIL HOLDINGS CO., LTD.
● Kintetsu Retailing Co., Ltd.

○ KITANIPPON KANKO RYOKOU

Co., Ltd.

○ Bocho Travel Co., Ltd.

● Kinsho Store Co., Ltd.
● Nako service Co., Ltd.
● Japan Foods Create Co., Ltd.

Other

● Kintetsu Tomonokai Co., Ltd.
● Mie-KK Road & Highway service area Co., Ltd.

Manufacturing / construction○ NARA CONVENIENT BUS LINES Co., Ltd.

Car sales / servicing● KINSO Co., Ltd.

○ Bocho Kanko Bus Co., Ltd.

● Stern Kintetsu Co., Ltd.

● Kintetsu Engineering Holdings Co., Ltd.

○ Meiko Bus Co., Ltd.

● Kintetsu Electrical Engineering Co., Ltd.

○ Nako Car Maintenance Co., Ltd.

Taxi services○ Kyowa Automobiles Co., Ltd.

● Kintetsu Railcar Engineering Co., Ltd.

● Kintetsu Taxi Co., Ltd.

Restaurant● ALL NIPPON ENGINEERING● Mie Kintetsu Taxi Co., Ltd.

○ Kintetsu Restaurant International Co., Ltd.

● Kintetsu Taxi Holdings Co., Ltd.

● Nagoya Kintetsu Taxi Co., Ltd.
● Ishikawa Kintetsu Taxi Co., Ltd.
● Hokko Daiwa Taxi Co., Ltd.
○ Gifu Kintetsu Taxi Co., Ltd.
○ EHIME KINTETSU TAXI Inc.
○ Kameyama Kotsu Co., Ltd.
○ Kintetsu Toubi Taxi Co., Ltd.
● NARA KINTETSU TAXI Co., Ltd.
○ Bocho Taxi Holdings Co., Ltd.
○ Hiroshima Kintetsu Taxi Co., Ltd.
○ Shunan Kintetsu Taxi Co., Ltd.
○ Hagi Kintetsu Taxi Co., Ltd.

● Kinki Transportation Service Co., Ltd.
○ NARA POST TRANSPORT Co., Ltd.

● Kokudo Kyushi Ferry Co., Ltd.

Co., Ltd.

CONSULTANTS CO., LTD.
● Kintetsu Landscape Design & Engineering

Co., Ltd.

Hotel and Leisure● SAKAE CO., LTD.

Hotels & Japanese inns

▲ The Kinki Sharyo Co., Ltd.
▲ DAI NIPPON CONSTRUCTION CO., LTD.

● Kintetsu Miyako Hotels International, Inc.

Other ● 1 company● Kintetsu Enterprises Company of America

Services○ Kongou Katsuragi Tourism Development Co., Ltd.
○ HAKONE KOGEN HOTEL Co., Ltd.

● AD KINTETSU CO., LTD.
● Kintetsu facilities Co., Ltd.

○ OKUNIKKO KOGEN HOTEL Co., Ltd.

● KINTETSU-COMMUNITY CO., LTD.

○ KASHIKOJIMA HOJOEN Co., Ltd.

● MiDI Corporation○ Hagi Kanko Hotel Co., Ltd.

○ KURASHI KAGAKU LABORATORY CO., LTD.
○ K-SUPPORT Co., Ltd.

LeisureOther ○ 2 companies △ 3 companies● Kintetsu Leisure Service Co., Ltd.

Cable televisions○ Shima Spain Village Co., Ltd.

Marine transportation○ Shima Marine Leisure● Kintetsu Track Engineering Co., Ltd.

Other △ 2 companies

Freight services● Kintetsu Cable Network Co., Ltd.

Aquarium○ Komadori Cable Co., Ltd.
○ Kintetsu Cable Network Kyoto Co., Ltd.

● Osaka Aquarium Kaiyukan Co., Ltd.

○ KCN Nantan Co., Ltd.

Rent-a-car service

Cinema● Kintetsu Rent-A Lease Co., Ltd.

● Kin-Ei Corp.

Information processing

Toll road service

Golf courses● Kintetsu Information System Co., Ltd.

○ Shin Wakakusayama Motorway Co., Ltd.

○ Kintetsu Golf & Resort Inc.

Insurance agency

Ropeway○ Beppu Ropeway Co., Ltd.

△ TV KISIWADA CO., LTD.

○ Asuka Golf Co., Ltd.

● Kintetsu Insurance Service Co., Ltd.

Travel agency

Nursing care

● KNT-CT Holdings Co., Ltd.

Real estate● Kintetsu Real Estate Co., Ltd.

▲ Mie Kotsu Group Holdings, Inc.
△ Nara Kanko Tochi Corporation
Other ○ 1 company △ 1 company

Overview ofthe Kintetsu GroupBus services

Kintetsu Group’s
Value Creation▲ Nara Ikoma Rapid Railway Co., Ltd.

Business Strategies○ Yoro Railway Co., Ltd.

● KNT Business Create Co., Ltd.

○ KINTETSU SMILE LIFE INC.

● Club Tourism International Inc.
● Kinki Nippon Tourist Co., Ltd.
● Kinki Nippon Tourist Corporate Business Co., Ltd.
● United Tours Co., Ltd.

CVC

Initiatives for Materiality○ Iga Railway Co., Ltd.

● Kinki Nippon Tourist Okinawa, Inc.

Messages fromthe Top Management● Tourist Experts Inc.

Railways

Corporate Information

Transportation○ Kintetsu Venture Partners, Inc.

● Club Tourism Life Care Service Co., Ltd.
● Club Tourism Space Tours Inc.
● Kinki Nippon Tourist Shoji Co., Ltd.
● SANKI Travel Service Co., Ltd.
● Tourist International Assistance Service, Inc.

* Segments detailed above differ from accounting segments.

Kintetsu Group Integrated Report 2022

106Company Overview and Stock Information (as of March 31, 2022)
Company overview

Major shareholders

Trading name

Kintetsu Group Holdings Co., Ltd.

Established

June 1, 1944

Number ofshares held
(thousand shares)

Name* The predecessor Nara Tramway Co., Ltd. wasestablished on September 16, 1910.

Head office address

6-1-55 Uehommachi, Tennoji-ku, Osaka
543-8585, Japan

Capital¥126.476 billion

Number of employees

255

Stock exchange listing

Tokyo Stock Exchange (Prime Market)* Post-market category change in April 2022
Accounting auditor

Composition ratios
to total number ofshares (excluding
treasury shares)

The Master Trust Bank of Japan, Ltd.
(Trust Account)

27,972

14.7

Custody Bank of Japan, Ltd.
(Trust Account)

8,042

4.2

Nippon Life Insurance Company

4,198

2.2

STATE STREET BANK WEST
CLIENT - TREATY 505234(Standing Proxy: Mizuho Bank, Ltd.)

3,643

1.9

MUFG Bank, Ltd.

3,000

1.6

JP MORGAN CHASE BANK
385781 (Standing Proxy: Mizuho
Bank, Ltd.)

2,352

1.2

Mitsubishi UFJ Trust and Banking
Corporation

2,000

1.0

Meiji Yasuda Life Insurance
Company

1,629

0.9

STATE STREET BANK AND
TRUST COMPANY 505103(Standing Proxy: Mizuho Bank, Ltd.)

1,608

0.8

SSBTC CLIENT OMNIBUS ACCOUNT(Standing Proxy: The HongKong
and Shanghai Banking Corporation
Limited Tokyo Branch)

1,477

0.8

KPMG AZSA LLC

Stock / shareholder status
Type of stock issued

Common stock

Authorized shares

500,000,000

Issued shares

190,662,061

Number of shareholders

212,850

Share distribution by shareholder type
Government andLocal Government
0.0%* Figures are rounded down to the nearest whole thousand.

Financial
institutions
32.3%

Individuals
and others
43.4%

Foreigncorporations, etc.
16.9%

Financial
instruments
business
operator
0.4%

Adoption in ESG indexes (as of October 31, 2022)● MSCI Japan Empowering Women Index● S&P/JPX Carbon Efficient Index

Other
corporations
7.0%● SOMPO Sustainability Index* Percentage calculations exclude shareholders holding less than one share.

Stock price and Trading volume
Stock price (yen)7,000

Trading volume (thousand shares)
35,0006,000

30,0005,000

25,0004,000

20,0003,000

15,0002,000

10,000

1,000

5,000

0

0
April
2017

April
2018

April
2019

April
2020

April
2021

* Figures reflect changes to the number of share units and a reverse stock split dated effective on October 1, 2017.
107

Kintetsu Group Integrated Report 2022

April
2022

September
2022

Kintetsu Group Integrated Report 2022

108

Corporate Information

Initiatives for Materiality

Business Strategies

Kintetsu Group’s
Value Creation

Overview ofthe Kintetsu Group

Messages fromthe Top Management

Administrative General Affairs Division (CSR)
Kintetsu Group Holdings Co., Ltd.
6-1-55 Uehommachi, Tennoji-ku, Osaka 543-8585, Japan
https://www.kintetsu-g-hd.co.jp/lang/english/
https://www.kintetsu-g-hd.co.jp
Published February 2023
Published March 2023 (English)