Kintetsu Group Integrated Repor t 2021

Kintetsu Group
Integrated Report

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 November 2021
Published March 2022
（English）

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.

The symbol represents Kintetsu Group Holdings’ Corporate Philosophy—To
Support Daily Life, To Create More Value.—by two figures of “stillness”and“motion”, while also resembling the initial letter “K.” While we hold on to thefundamentals that will never change, we flexibly adapt to new changes as theycome, a guiding principle that is fluid yet immutable. Our role is to support
peace of mind in people’s daily lives and to create new value. This markrepresents our strong intention to contribute to society by supporting daily lifein safety and offering new value of life.
“One step forward into the future”
This is our ideal business standard lead by the philosophy.

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Kintetsu Group Integrated Report 2021

Kintetsu Group Integrated Report 2021

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Editorial Policy

Contents

Editorial Policy for Kintetsu Group Integrated Report 2021
The purpose of this report is to introduce the Group’s business activities and the value it provides to society, and to help
shareholders, investors, customers, local residents, business partners, employees, and other stakeholders gain a better
understanding and familiarity with the Group.
In addition, through the publication of this report, we will enhance our corporate value by further communicating with our
stakeholders.

Kintetsu Group Management Philosophy ･････････････ 1

Strategies of major companies

Editorial Policy / Contents ････････････････････････････ 3
Kintetsu Railway Co., Ltd. ････････････････ 35

Top Message

Kintetsu Real Estate Co., Ltd. ････････････ 37
Kintetsu Department Store Co., Ltd. ･･････ 39
KINTETSU RETAIL HOLDINGS CO., LTD. ･･･ 41

Message from the Group CEO ････････････ 5
Message from the President ･･････････････ 7
Period covered

Kintetsu Miyako Hotels International, Inc. ･･･ 43
KNT-CT Holdings Co., Ltd. ･･･････････････ 45

April 1, 2020 to March 31, 2021
(includes some more recent initiatives)

Kintetsu Group Overview
Scope covered
Figures given in this report cover Kintetsu Group Holdings Co.,
Ltd. and its consolidated subsidiaries. Initiatives detailed are thoseof Kintetsu Group Holdings and its group companies.

The History of the Kintetsu Group ･････････ 9
Business Area ････････････････････････････ 13
Financial / Non-Financial Highlights ･･････ 15

Reference guidelines, etc.
●

International 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”●

Information disclosure

Forward-looking statements
This report contains statements regarding future performance.
Such statements are not guarantees of future performance andare subject to risks and uncertainties. Please note that future
performance may differ from planned figures due to changes
in the business environment and other factors. This report isprovided for informational purposes only and is not intended as asolicitation for transactions.

Business Activities ････････････････････････ 17

Initiatives of Materiality
Supporting Lives Initiatives ････････････････ 47
Community Development Initiatives ･･･････ 48
Tourism Initiatives ････････････････････････ 49
Environmental Initiatives ･･････････････････ 51
Safety and Peace of Mind Initiatives ･･････ 57

Value Creation

Human Resources Initiatives ･････････････ 63
Governance Initiatives ････････････････････ 71

Value Creation Process･･･････････････････ 23

Corporate Officers ････････････････････････ 75

Information can be found on the Kintetsu Group Holdings website.
Kintetsu Group Sustainability Policy &Contents

Materiality (Priority Issues) ･･･････････････ 25

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.
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.

Company Overview and Stock Information･･･ 83

Corporate governance report

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/

Kintetsu Group Sustainability Policy ････････････････ 84

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.

Kintetsu Group Medium-term Management
Plan 2024 ･････････････････････････････････ 27

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Corporate Information

Integrated report(this report)

Kintetsu Group Integrated Report 2021

Message from the External Directors ･････ 33

Financial Data ････････････････････････････ 79
Kintetsu Group Companies ･･･････････････ 82

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Message from the Group CEO
The Future of the Kintetsu GroupWe will continue to reformthe Kintetsu Group andcontribute to the realizationof a prosperous society by
co-creation.
Tetsuya Kobayashi
Representative Director and Chairmanof the Board, Group CEO

The Reform of the Kintetsu Group During the COVID-19
Pandemic
I have been managing our company based on the belief that therole of our group is to contribute to the development and happinessof the community through our business. To this end, we have set up
three different bases - a terminal in the heart of the city, a residentialarea, and a tourist spot - and by connecting these bases by train,
we have aimed to provide a prosperous daily life and enjoyable andunusual experiences.
However, as the structural problems of Japanese society havebecome more apparent, such as the low birthrates, aging society,and accelerating population decline, and the growing exhaustionand depopulation of rural areas, the Group has been focusing
on deepening its efforts along its railway lines in recent years. In
railways business, we have introduced new limited express trains
such as “Shimakaze”, “Blue Symphony”, and “Hinotori”, and shifted
our strategy to proposing journeys that make transportation apleasure. We believe that we have been able to revitalize the areas
along our railway lines by taking advantage of the synergy effects of
the Group and working in cooperation with local residents.
We are now in the midst of the COVID-19 pandemic, a 100 oncea-year national crisis. I believe this is a kind of “rapid wave” which
may cause not only where and how to live and work, but change our5

Kintetsu Group Integrated Report 2021

set of values.
Our group has been strengthening our disaster countermeasuresrealizing natural disasters as a major risk factor without sticking to
the precedent. However, since our businesses were concentrated
on so-called B2C, the COVID-19 pandemic caused major damage
to all of us. So now, we strongly recognized that we must expect
future risks and prepare for them in a proactive manner.
The world is changing after the COVID-19 pandemic. The
advancement of digitalization is about to realize a society that
does not rely on human mobility. We see the dramatic changes inthe environment that are occurring now as an opportunity for us
to change, and we will continue to go forward with our businessstructural reforms.

I would like to describe the future of the Kintetsu Group. First isabout our railway business. The Kintetsu Limited Express Network
has been a major asset of ours since it was constructed shortly after
the war, in 1947. By leveraging this network, we will further enhance
the added value of our limited express services and promoteseamless integration with other services to offer high-quality,
enjoyable and safe travel. In the midst of a motorized society, we
will once again enhance the vitality of the railway business andcontribute to the realization of a decarbonized society.
We will also promote tourism by proposing fun ways to get aroundand by utilizing the natural, historical, and cultural resources along
Kintetsu Lines. Together with you, we will work to build tourism
attractions and make the region worth visiting.
In regard to the community development, the digitaltransformation is bringing about a new society that people can freely
choose where to live. The Kintetsu Group have a lot of residence,commercial facilities, and public transportation services. Byleveraging our experiene and service assets, we will create compact
and comfortable towns where people want to live, getting along withlocal residents.
I would like to speak a little more about our business structure.
While our main customers will continue to be people living along
Kintetsu Lines, we believe that we need to go beyond the B2C
business that we have been promoting in our railways, real estate,merchandise sales, and other businesses. For example, in thereal estate business, we will expand the number of assets we are
involved with in the Tokyo metropolitan area and core cities, inaddition to the areas along Kintetsu Lines in order to broaden ourbusiness. In addition, we will strengthen the group companies thatare already engaged in B2B business and actively pursue M&A
to ensure business diversity. In addition, we will reform existing
businesses using digital technology and build a digital social
infrastructure.
We will also work to expand our business areas, seizing theopportunity of the opening of the IR in Yumeshima to plan direct
trains to our railway lines to bring the effects of the IR to ouroperational area. In addition, we will strengthen the hub function of
Uehommachi Osaka, which is the base of our group. Uehommachi
is our main terminal station, with a concentration of department
stores, hotels, theaters, etc. As a hub in the east of Osaka, we will
strengthen the bus terminal and other functions to attract customers.
The area will be redeveloped.
On the other hand, for customers from the Tokyo metropolitanarea, which will increase with the opening of the Linear Chuo
Shinkansen Line in Nagoya, we will look at ways to attract people toIse-Shima and other areas along our railway lines. Furthermore, wewill take the opportunity of the redevelopment of the Nagoya area
to strengthen our ties with Aichi and Gifu prefectures, including the
Chubu International Airport, and expand our business in the Chukyoarea. We believe that it is also possible to develop a circular routefor inbound travelers, such as taking a high-speed ferry from KansaiInternational Airport to Yumeshima IR, and from Nagoya to Central
Japan International Airport after sightseeing in Nara and Ise.
We would also like to expand our business overseas. In addition
to cultivating inbound demand along our railway lines, we will
actively seek opportunities for overseas business by utilizing thebases and sales channels that we have established in the Group’s
international logistics, travel, and hotel businesses.

To Pass on a Prosperous Society to the Next Generation
In post-war Japan, the cost of pursuing and achieving economic
growth and affluence has been the structural problems of theconcentration of power in Tokyo, the exhaustion of rural areas, andthe increasing depopulation of the population. In the process, I feelthat the traditional Japanese advantage of “living by helping one
another” in the local community has been diminished. The searchfor convenience and material wealth has led to the “individualization”
of everything and the fragmentation of society, and I believe that the
COVID-19 pandemic has highlighted this fact even more.
In order to pass on a prosperous society to the next generation,
it is necessary to enhance the role of local communities. We believethat supporting and enhancing each other will lead to a society thatis rich in both material and spiritual resources and can develop
sustainably.
We will contribute to the revitalization of local communities asa corporate group that possesses both hardware and software
management resources directly related to people’s lives. We will
work together with everyone to revitalize the communities along ourrailway lines, which have nurtured us over the years, and contributeto passing on to the next generation a “prosperous society throughco-creation.”
In addition, we will enhance our resilience and growth potential
by pursuing new strategies, such as proactively engaging in B2B
activities and expanding our business areas overseas and in Japan.
Based on the strengths we have cultivated along our railway lines,
we will become a corporate group that contributes to society more
broadly in the new era.
We will also continue to develop sustainably as a company thatis responsible to our stakeholders, including the people along ourrailway lines, our employees, and our shareholders.

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Kintetsu Group
Overview

Value
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Strategies ofmajor companies

Initiatives ofMateriality

Corporate
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Message from the President

We will focus on recoveringfrom the COVID-19 pandemic
to achieve sustainable growth
for the Group and a prosperous
society.
Toshihide Ogura

pandemic and move toward new business development and leaps
forward.
The plan will cover the four-year period to fiscal 2024. We set
fiscal 2021 as a year of dealing with COVID-19, and the years
2022 onward as the period in which we learn to live in a postpandemic world. After establishing the foundation of our business,
we will proceed with our business activities in order to respond to
the diversification of people’s values and their changing lifestyles in
conjunction with the progress of digitalization.
Specifically, we have set up the 6 following priority measures:

Establishing a Sustainability Policy
As we currently focus on business recovery from the COVID-19
pandemic, we have formulated the Kintetsu Group Sustainability
Policy in order to clarify the significance of our business once again.

Kintetsu Group Sustainability Policy

Representative Director and President

The Kintetsu Group aims sustainable growth, andcontributes to the realization of prosperous society for
next generation, by creating new value through cocreation with various people.

The Kintetsu Group Has Walked with the Community
The Kintetsu Group was founded in 1910 as Nara Tramway
Co., Ltd. , connecting Osaka and Nara. In order to connect Osakaand Nara in the shortest possible distance for high-speed masstransportation, the decision was made to dig a tunnel through Mt.
Ikoma on the border of the two prefectures as the grand plan ofa century. The challenging project was finally completed, and theline opened in 1914. Since then, we have expanded our businessby adding new lines and merging with other companies, and ourrailroad business has developed a network of lines in the Kinki
and Tokai regions that is close to the longest in the private railway
group at 600 kilometers, and we are also engaged in a wide rangeof lifestyle-related businesses that are deeply rooted in the lives ofpeople along our railway lines.
Although there have been many trials and tribulations up to today,

our predecessors have overcome adversity with an enterprisingspirit and a willingness to take on challenges, and have supported
the development of the region by providing value that is one stepahead of the times.
However, in recent years, the issues surrounding society havebecome more severe and more complicated, and it has become
increasingly difficult for businesses to solve these issues simply
by taking a stand-alone approach. As a public service provider,
we believe that it is important for us to play a mutual role with thepeople who make up the local community, to support each other'sefforts, and to work together to solve problems.
In the future, we will continue to judge the value of the businesses
in which we operate from a social and long-term perspective, andseek the best way to pass them on to the next generation.

Formulation and Implementation of the Kintetsu Group
Medium-Term Management Plan 2024
The effects of the coronavirus have been felt for a long time,since January 2020 and the Kintetsu Group, whose core businessis transportation, which is part of the social infrastructure, hascontinued to fulfill its social responsibility by paying close attention tocountermeasures against the new coronavirus.
However, the management environment has been very severe,and people’s movement and consumption dropped off dramatically infiscal 2020, resulting in our worst ever performance—a consolidated

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Kintetsu Group Integrated Report 2021

net loss of 60 billion yen—and our inability to pay out dividends. We
realize that our portfolio was heavily biased toward B2C businesses
based on human flow. Although the current fiscal year continues
to be difficult, we are determined to take all possible measures tosecure profits.
In response to the drastic changes in the social environment,
the Kintetsu Group formulated the “Kintetsu Group Medium-Term
Management Plan 2024” in May 2021 to recover from the COVID-19“Radically reviewing our cost structure,” “Early reduction of interestbearing debt,” “Strengthening collaboration with external partners,”“Reforming our business portfolio,” “Creating new businesses andservices through DX,” and “Implementing community developmentthat aims to resolve regional issues.” We are working diligently
to improve our financial position, enhance our risk tolerance, andstrengthen our profitability.
We will steadily implement this management plan and lead it to
the next leap forward.

Our unchanging role is to contribute to the development andhappiness of the community through our business. Our businesses,
which are involved in every aspect of our lives, are themselves
SDGs activities that contribute to a sustainable society, and thesustainable growth of the Group and the realization of a prosperous
society are two wheels that support each other.
Public transportation, including railway, is the foundation of social
life. Public transportation is accessible to everyone, and is also
environmentally friendly. We are promoting urban development
around stations, providing a variety of lifestyle-related facilities atstations in the city center and a comfortable living environment
around stations in the suburbs. In addition, we also help visitors toenjoy tourism that nourishes the soul in our operational area, which
is full of history and scenic nature. We will continue to contributeto the realization of prosperous society as we flexibly respond tothe changing society with Corona Damages and seize business
opportunities.
Our sustainability policy cleary shows the significance of ourbusiness activities.

In order to put this policy into practice, we have set up 7 priority
issues for sustainability as our long-term goal by the advantage of
our Group businesses, as the result of considering various social
issues. Details are referred on page 25 of this report.
First of all, we decided on the following themes to directly create
value for a sustainable society through our business activities:“Creating a lifestyle that anticipates changes in values,” “Energizing
communities by enhancing the network,” and “Enriching people andcommunities with travel.”
Next, we have set “Contributing to the realization of adecarbonized and recycling-oriented society” as our environmental
initiative. In addition to promoting energy and resource conservationin each of our businesses, we will promote information disclosure inline with the framework of the TCFD (Task Force on Climate-related
Financial Disclosure) recommendations.
As a group centered on railways, we have given top priority tosafety, and in order to provide people with peace of mind in their
daily lives, we have adopted the policy of “ensuring safety andpursuing peace of mind.”
Finally, we have defined “Bolstering our governance and risk
management” and “Fostering diverse human resources andsupporting their activities” as those that solidify the corporate
foundation that is the premise for our business activities. We aim
to build a highly transparent and fair management system for eachcompany in the Group, and to continue to provide value to society
by leveraging synergies. The foundation of a company is the “humanresources” who work there. In order to provide diverse value to ourcustomers, we aim to be a corporate group where diverse humanresources gather and grow.

Value Creation by The Kintetsu GroupOn page 23 of this report, we detail our value creation process.
We promote business activities based on the Kintetsu Group
Sustainability Policy, which was established based on the KintetsuGroup’s management philosophy of “To Support Daily Life, To
Create More Value.” By doing so, we aim to achieve sustainablegrowth and contribute to the realization of a prosperous society
through co-creation.

As I have mentioned so far, we will overcome the severe
environment of the COVID-19 pandemic and aim to achievesustainable growth by turning pinch points into opportunities. Even
under difficult circumstances, we will place the highest priority on
satisfying our stakeholders and contributing to the realization of asustainable society by practicing sustainable corporate development.

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Kintetsu Group
Overview

Value
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Strategies ofmajor companies

Initiatives ofMateriality

Corporate
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The History of the Kintetsu GroupNew Services Lead to Business Expansion

With an enterprising spirit anda willingness to take on challenges,
the Kintetsu Group has 110-year
history of turning pinch points
into opportunities

During the period of recovery after World War II, Kintetsu bought and merged with smaller railways while focusing its efforts on building alimited express network. The company was Japan’ s first private railway to have a system that regulated seat capacity for its new limited express
services, which required a separate fee in addition to the standard fare, and began operations between Uehommachi and Nagoya in 1947, andbetween Uehommachi and Ujiyamada the following year.
At that time, with the chaos of the post-war period, regular trains were often overcrowded, but
by providing a train that was comfortable and where even women with babies could feel safe andsecure, Kintetsu demonstrated how railway transportation services should evolve in the future.
In 1958, Kintetsu was the first railway in the world to introduce a double-decker limited
express, and brought in services one after another that were the first of their kind in Japan,
including on-board public telephones and seat radios, and hot towels service.
At the same time, Kintetsu was looking at what was going on elsewhere in the world, actively
importing new services and expanding its business. One example was its modern taxi service,with the cars painted a yellow to match the shade of the United States’ famous yellow cabs andilluminated signs that showed at a glance whether the taxi was vacant or occupied. Kintetsu
Department Store Abeno Store was also home to Japan’ s first drug store; its sales style—sellingnecessities for 12 hours a day, 365 days a year—was a cutting-edge development that had neverbeen seen before.
In this way, Kintetsu at that time developed its business with a global perspective, offering avariety of services that anticipated the needs of the market.
Kintetsu Taxi “Yellow Taxi” (1950)

Opened thewhole line
Opened Daiki
betweenUehommachi and Department Store(now Uehommachi Store)
UjiyamadaBegan operation of a line
between Uehommachi and Nara

1910

1914

Nara Tramway Co., Ltd.
was established on September 16
Changed name to
Osaka Electric Tramway Co., Ltd.

1926

1929

OpenedAyameike
Amusement
Park

1931

OpenedIkoma Sanjo
Amusement
Park

1936

Established a rugby club(now Hanazono Kintetsu Liners)
Opened Hanazono Rugby
Sports Ground

1941

1944

Opened Daitetsu
Department Store(now Kintetsu Department Store
Main Store Abeno Harukas)

Established Kintetsu
Railway Co., Ltd. on June 1

Began operation ofa limited express service
between Uehommachi
and Nagoya

1947

1948

Established theKintetsu Pearls
baseball club

1949

Began operation ofa limited express service
between Uehommachi
and Ujiyamada

Began operation of thefirst-generation Vista Car

1951

1953

Opened the
Shima Kanko
Hotel

1958

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

Began capital participationin Miyako Hotels Co., Ltd.

The Decision to Excavate the Ikoma Tunnel was a Gambleon the Company's Future.

Disaster to Opportunity: Widening the
Gauge of Tracks on the Nagoya LineThe Kintetsu story began on September 16, 1910 when Nara Tramway Co., Ltd. was established to build a railway connecting Uehommachi in
Osaka and Nara. In October of the same year, the company was renamed Osaka Electric Tramway Co., Ltd.
In order to connect Osaka and Nara by rail, it was necessary to cross Mt. Ikoma. A number of ideas were considered, including a large detourto the north and a cable car connection, but the final decision was to excavate a tunnel over the shortest distance, which was considered the mostdifficult. It predicted the need for high-speed, mass transit in the future, and so came to the decision to undertake this incredibly large-scale
project. The excavation of the long-distance tunnel, 3.2 km took around two-and-a-half years and cost five million yen, which went well over thecompany’ s capital at the time of three million yen. Many thought it reckless, but the company’ s executives managed to articulate the need for thetunnel to their shareholders and gain their understanding. So, in 1911, construction began.
Such was the difficulty and danger of the project that during digging, including one
where a cave-in occurred, killing 19 workers. After myriad hardships, the tunnel was
finally completed on April 30, 1914, and a line running between Uehommachi andNara was opened. While the opening of the line led to a boom in the company’ s
fortunes, its expenses for setting up the railway had grown to 7.87 million yen and thecompany was in a predicament. The company’ s management issued bonds,
exchanged stocks for preferred stocks, and reduced the amount of capital, anddespite being on thin ice, ultimately managed to claw its way out of that hole. The
ability of those executives, our predecessors, to make decisions and execute them,and their spirit of taking on challenges, is the foundation of our current Nara Line.

While Kintetsu had begun operating services between Osaka and Nagoya,
the gauge of the tracks varied, standard gauge (1,435 mm) on the Osaka Linebetween Osaka and Ise-Nakagawa, and narrow gauge (1,067 mm) on the
Nagoya Line between Ise-Nakagawa and Nagoya. This meant passengers
needed to switch trains. To reduce travel time, and increase capacity, thecompany made the decision to make the gauge for the entire journey uniform
and began work on widening the gauge of the Nagoya Line.
However, just as work was scheduled to be completed, Typhoon Vera struck
Japan on September 26, 1959 and Kintetsu’ s entire Nagoya Line was plunged
under water. Eighty-four railcars were affected and the damage came to 2.5
billion yen. As well as putting all of its energies into repairs, the company took
this opportunity to move forward with the standard gauge and open the entire
length of track between Osaka and Nagoya in one go.
At the same time, Kintetsu introduced a second-generation Vista Car, anevolution of the original, double-decker limited express train that was theirflagship, the Vista Car. As a result, Kintetsu’ s share of passengers on trains
between Osaka and Nagoya rose to 30% compared to the Japanese national
railway’ s 70%. Through this and other achievements the line became one of ourcore inter-city transportation routes.

Uehommachi Stationon the day of its opening (1914)

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1937

Established Kankyu Travel Agents Limited(now KNT-CT Holdings Co., Ltd.)

Kintetsu Group Integrated Report 2021

1959

Began operation Began operation of a limited expressof a limited
service between Abenobashi and Yoshino
express service
Began operation of a limited
between Kyoto
express service between
and Nara
Kyoto and Ujiyamada

1964

Suffereddamage during
Typhoon Vera

1965

1966

Began operation of the second-generation Vista Car
as a direct, limited express service
between Uehommachi and Nagoya

Completed work to widen the gaugeof tracks on the Nagoya Line

The Nagoya Line
Suffered Damage
in Typhoon Vera
(1959)A second-generation Vista Car

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Making Ise-Shima the Second Siteof the Expo

ABENO HARUKAS, Bringing Together the Kintetsu Group’s
Strengths

For the Japan World Exposition in Osaka in 1970, Kintetsu enacted three massive
projects to attract expo visitors to Nara and Ise-Shima: the extension of the Namba
Line, the relocation of Kintetsu-Nara Station underground, and work on establishing
the Toba Line and widening the Shima Line. The extension of the line from
Uehommachi to Namba enabled Kintetsu to connect its operational area to the heartof Osaka, dramatically improving the flow of people. Kintetsu-Nara Station wascompletely reconstructed to make it a fitting entranceway to the international tourist
destination, the city of Nara. In Ise-Shima, the company also established a new line
between Ujiyamada and Toba, which previously were not connected, and by widening
the gauge of the Shima Line, the company became able to offer direct limited express
services all the way to Kashikojima from Osaka, Kyoto, and Nagoya. At the same time,
Kintetsu added a new building to the Shima Kanko Hotel (now The Classic) andopened leisure facilities such as the Kashikojima Country Club and Shima Marineland.
This made the Kashikojima area a resort area with a strong international air, whichbustled as an unofficial second venue for Expo ’70.
In 1994, the Ise Jingu shrine underwent the process of rebuilding and relocation—
something that only happens once every 20 years. To coincide with that, Kintetsu
opened Shima Spain Village and began operation of the Ise-Shima Liner. The
company has continued to work on developing the Ise-Shima region as a tourist
destination, as seen in measures such as its opening of Shima Kanko Hotel’ s Bay
Suites in 2008. These efforts would play a part in Ise-Shima being chosen as the siteof a G7 summit in 2016.

From 2010 onward, the Kintetsu Group halted the shrinking of its operational area and went on the offensive. In particular, it poured its energies
into the construction of ABENO HARUKAS, a multi-story city situated right above the railway station, with a department store, hotel, observatory,art museum, and many other attractions. All of the functions for the building— facilities, management, etc.—were all handled by the KintetsuGroup, with different divisions cooperating with each other with the goal of creating a base that can provide the comprehensive services asked ofa railway terminal. The aim behind the construction of ABENO HARUKAS, Japan’ s tallest skyscraper, was to create new value and charms
through the synergistic effects of the group’s collaboration and attract visitors to the terminal.

Work underway on constructing the Namba underground line (1969)

The Journey is Itself the Purpose of the Trip:
the Shimakaze Sightseeing Limited Express

A poster advertising the opening of a railway connection
between the Toba and Shima lines (1970)

Reorganized
Kintetsu Real
Estate Co., Ltd.

Opened Kintetsu Theater

1969

1970

Relocated
KintetsuNara Station
undergroundConstructedToba Line andimproved
Shima Line

1985

1994

Opened Shima
Began
operation Marinelandof theNamba Line

Established Kintetsu
Air Cargo Co., Ltd.
(now Kintetsu World
Express, Inc.)The Japan
Began operation of direct limited
World Exposition express services between Kashikojima
1970 was held
and Namba, Kyoto, Nara, and Nagoya
in Osaka

2002

Began operation of theIse-Shima Liner
Opened Shima
Spain Village

2003

Transferred Hokusei Line to
Sangi Rail Co., Ltd.

2004
Closed Kintetsu Theater
Closed Ayameike
Amusement Park
Osaka Kintetsu
Buffaloes Co., Ltd.
transferred its
baseball business

The Collapse of the Bubble Economy and the Decision
is Made to Restructure
After the economic bubble came to an end in 1991, the Kintetsu Group’ s management situation worsened, and the policy of actively expandingthat had been in place since the company was founded, was changed to one of concentrating management resources on the area in which it
already operated. It endeavored to improve its cost structure so that it could maintain a profit, even if revenue decreased.
The company realized that in the railway business, it faced a declining population. A conventional business model predicated on high-speed
mass transit would not cut the mustard. As a result, the company worked to rationalize operations based on systems that require fewer
employees, such as low-staffed and unstaffed operations at stations and train operations that only need one driver.
The problem of the balance between revenue and expenditure on the regional lines reached crisis, and the company transferred some of its
businesses to other companies or spun off businesses through public-private partnerships one after another. With land values tumbling after theend of the economic bubble, Kintetsu Real Estate was severely affected by unrealized losses. Seeing as asset impairment accounting had been
introduced as part of the international accounting standards that the Japanese government had mandated Japanese companies use, Kintetsu
decided to undertake a fundamental reorganization in 2002. On the other hand, Kintetsu’ s baseball business, which had served to broadcast thebrand name nationwide, was facing bigger losses each year and under pressure from sluggish ticket sales and rising salaries for its players. So, in
2004, the management rights to the club were transferred to Orix Baseball Club Co., Ltd. and the group withdrew from the baseball business.
Similarly, the group was forced to close the Ayameike Amusement Park and Kintetsu Theater, and to end its support for the OSK Nippon Revuetheatrical troupe; moves which led it to decide on structural reforms.
The group implemented these reforms, and while the four fiscal years from 1999 showed consecutive losses, fiscal 2006 resulted in the group’ s
best-ever profit—22.8 billion yen; the group was once more on the track to growth.

11

Kintetsu Group
Overview

Kintetsu Group Integrated Report 2021

In 2013, Ise Jingu was rebuilt and relocated and in line with this, Kintetsu introduced aflagship sightseeing train, the Shimakaze sightseeing limited express with the design conceptof a train that where the journey is itself the purpose of the trip. As people’ s sense of priorities
toward travel diversified, the company felt a sense of urgency that there was no future forrailways if they could not provide services that satisfy each and every customer individually.
This kind of strategy to offer added-value is part of the heritage that has been passed down to
the new sightseeing express between Nagoya and Osaka, the Hinotori. In the future, Kintetsu
will work to develop a comprehensive limited express strategy that is not limited to railcar
design, but incorporates in-train services, timetables, fare systems, sales channels, and otheraspects.

Opened Shima Kanko
Hotel's Bay Suites

2008

2009

Celebrated 100 yearsof Kintetsu Railway
Co., Ltd.

2010

Began mutual direct
operations with
Hanshin Electric
Railway

2013

Grand Opening of
ABENO HARUKAS

2014

Established
Kintetsu Venture
Changed trade name to
Kintetsu Group Holdings Co., Ltd. Partners, Inc.

2015

2016

Integrated management of Kinki Nippon Tourist
Co., Ltd. and Club Tourism International Inc.
to form KNT-CT Holdings Co., Ltd.
Began operation of the sightseeing express Shimakaze

Switch to a Pure Holding
Company Structure
Changes in society are gaining speed, with the local population
declining, people aging with low birthrates, the internet environment
spreading, and many others transformations afoot, but newcompanies and services are also emerging. In such circumstances,
the Kintetsu Group, which has developed in a wide range of diverse
industries, determined that each industry needed to be managed
through organizational structures and corporate cultures appropriate
to that individual industry.
With this in mind, the Kintetsu Group switched to a pure holding
company structure on April 1, 2015, to raise corporate value andachieve the twin goals of strengthening the group’ s management
functions and introducing autonomous management for the different
companies in different businesses.
Under the new structure, which allowed the holding company toplan management strategies and make adjustments, companies
were able to better foster corporate cultures with different priorities:
for the railway business, this meant a culture that focused on safety
and peace of mind first, while for companies in the real estate, hotel,
leisure, and merchandise sales sectors, their corporate culturesemphasized close attention to the markets and being at the
cutting-edge of the times. With each company becoming morerobust, they each looked to, and worked toward, making the groupas a whole stronger.

The Shimakaze sightseeing limited express

2018

Began operation of
the Meihan
Limited Express
Hinotori

2020

2021

Made Osaka Aquarium Kaiyukan Co., Ltd. a subsidiary
The G7 Ise-Shima Summit
was held May 26–27

A Chance to Reform:
Conquering the Covid-19 Pandemic
and Achieving Further Growth
The COVID-19 pandemic led to a decrease in people’s movement
and consumption and, as a result, the railway, hotel, travel agency,
department store, and other businesses were severely affected,
leading in to the worst financial result in Kintetsu’ s history in fiscal
2020, a loss of around 60 billion yen.
The extent to which people have changed the way they think andlive as a result of the pandemic is something unprecedented in
Kintetsu’ s 110-year history. This unheard-of crisis has shaken thegroup’ s businesses to the core, yet it also presents the group with achance to restructure and achieve a new stage of dramatic growth.
Currently, the Kintetsu Group is steadily working to implement
and achieve its newly formulated Kintetsu Group Medium-termManagement Plan 2024. The ultimate aim of the plan is to restore
the group to a pre-pandemic standard and to make it a corporategroup that is needed by local residents and that can continue togrow hand in hand with the region.

Kintetsu Group Integrated Report 2021

12

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Message

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Business Area
We are pushing ahead with community development and expanding into lifestyle-related businesses, centered on
our railway network, which covers the Kinki and Tokai regions. As well as supporting people’s daily lives, we aremaking full use of the regions’ tourism potential to create excitement for visitors. Our business network goes far
beyond the areas served by our trains, though, as our businesses forge a path throughout Japan and even further
afield.
Kintetsu Line

Kintetsu Department Store,
Nagoya Store (Kintetsu Pass’e)

KintetsuNagoya

Aichi Pref.

Kyoto Pref.

Kintetsu Group Line
Other Line (interconnection section)

World Heritage

Other Line

Historic Monumentsof Ancient Kyoto

JR Shinkansen Line

KuwanaKyoto Subway
Kintetsu Pass’e

Main facilities in Kyoto area

Department store/ commercial facility
Hotel and Japanese inn

Main Businesses along Kintetsu Lines

Leisure facility● The Westin Miyako Kyoto

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

Main facilities in Uehommachi area
● Sheraton Miyako Hotel Osaka● Kintetsu Department Store,
Uehommachi Store

Miyako Hotel Yokkaichi
Kintetsu Department Store,
Yokkaichi Store

Kintetsu-Yokkaichi

The Westin Miyako Kyoto

Osaka
Pref.
O

● Uehommachi YUFURA

Chubu Centrair
International Airport

・Railway: 582.2 km (group total)
・Buses and taxis
・Real estate:
Condominiums 60,677 units(cumulative total for Kinki and Chubu regions)
Detached houses 13,915 units(cumulative total along Kintetsu Lines)
・Department stores: 10 stores・Supermarkets: 37 stores・Convenience stores: 93 stores・Hotels and Japanese inns: 18 facilities(Miyako Hotels & Resorts facilities in Kinki andTokai regions)・Theme parks
・Cable television, etc.
※Figures correct as of September 30, 2021

ShirokoUehommachi YUFURA

Osaka Inte
IInternationalnternationalntenAirportA

Nara Kotsu Bus Lines

Main Businesses outside Kintetsu Lines

Hinotori

Kintetsu Ayameike
Residential Area

Hanshin LineJapan

Kintetsu Department Store,
Ikoma Store

Shin-Osaka

Tsu

Kintetsu Department Store,
Nara Store

Yamato-Saidaiji
Ikoma
Ikoma Sanjo
Kintetsu-Nara
Amusement Park
Kintetsu Department Store,
World Heritage
Higashi-Osaka StoreNara Park
Historic Monumentsof Ancient Nara

Hokuriku region
・Bus services
・Taxi services
・Roadside service areas

OsakaUehommachi
OsakaTsuruhashi
Namba
OsakaOsaka Metro Abenobashi

Iga-Kambe

World Heritage
Buddhist Monumentsin the Horyu-ji Area

Matsusaka

Nara Pref.
Kintetsu Department Store,
Kashihara Store
Yamato-Yagi

World Heritage
Mozu-Furuichi
Kofun Group

IseshiUjiyamadaIsuzugawaBlue SymphonyShin-Osaka

YoshinoShima
Spain Village
Ugata

World Heritage
Sacred Sites and Pilgrimage Routes
Mt. Yoshino Cherry blossoms
in the Kii Mountain Range

Osaka Aquarium Kaiyukan

Universal
Studios Japan
Yumeshima

World
Expo venue

OsakaNamba

Osaka
Aquarium Kaiyukan
Cosmosquare

OsakaUehommachi
OsakaAbenobashi

World Expo venue
Image courtesy of the Japan Association for the 2025 World Exposition

13

Kintetsu Group Integrated Report 2021

Tsuruhashi

Main facilities in the Abeno area
● ABENO HARUKAS● HARUKAS 300 (Observatory)● Osaka Marriott Miyako Hotel● ABENO HARUKAS Art Museum● Kintetsu Department Store
Main Store Abeno Harukas● Ten-Shiba● Hoop● Abeno and● Miyako City Osaka Tennoji● Abeno Lucias● Apollo Building● Abeno Apollo Cinema
ABENO HARUKAS and Ten-Shiba

Kintetsu Lines

Overseas

Mie Pref.

Osaka Metro
Midosuji Line

Toba

Ise-Shima
National ParkIse Jingu

Enlarged view

Nationwide
・Travel agency
・Logistics

・Hotels and Japanese inns

Shimakaze

Kashiharajingumae

Kansainsai International
nation Airport

Chugoku, Shikoku,
and Kyushu regions
・Bus services
・Taxi services
・Marine transportation

Ise-Nakagawa

Shima Spain Village

China andTaiwan・Restaurant・Travel agency

Tokyo
metropolitan
area・Real estate・Hotels andJapanese inns

USA・Hotels
・Railcarmanufacturing
・Travel agency

Kashikojima

Yo
YoshinoK
KumanoN
National Park

Main facilities in the Kashikojima area
● Shima Kanko Hotel● Miyako Resort Shima Bayside Terrace● Miyako Resort Okushima Aqua Forest● Kashikojima Hojoen● Kintetsu Kashikojima Country ClubAgo Bay

46 countries
・Logistics

Australia
・Travel agency

Kintetsu Group Integrated Report 2021

14

Top
MessageFinancial Highlights

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Non-Financial Highlights

Operating revenue

Operating profit (loss) and operating profit (loss)
to revenue from operations

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

CO2 emissions (companies subject to periodic
reporting pursuant to the Energy Conservation Act*1)(Billionsof yen)(Billionsof yen)80(Crude oil
equivalent
1,000 kl)
500

(1,000 t-CO2)

1,500

1,204.8

1,222.7

1,236.9

Operating profit (loss)

64.8
1,194.2

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

67.7

64.6

60

1,000

40

697.2

5.5

5.3

-8.9

2019

2020

(FY)

2016

2017

2018

2019

2020

Profit (loss) attributable to owners of parent and ROE(Times)
20.0

40

1,200

1,099.2

1,080.2

1,055.9

30
15.0

800
600

9.3

9.2

Profit (loss) attributableto owners of parent

ROE (right axis)

20

10.2
8.8

10.0

(%)
20.0

35.9

1,058.2

1,000

200

400

100

200

26.2
7.9

29.6
9.6

8.4

2018

2019

2020

20.5

Full-time Director
40

10.0

5.4
5.0

10

0.0

0

-17.3
-60.1
2016

(FY)

2017

2018

20

2019

2020

Capital expenditures(Billionsof yen)3,000(Billionsof yen)Total assets

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

3.2

2.9

1,914.4

2,000

3.5
1,936.4

2.5

(%)
4.0
3.0

1,955.0

1,912.9

2.0

(FY)

20

2016

2017

2018

2019

(FY)

2020

Number of employees (consolidated)(%)
40

40,00028.6

30

30,000

23.5

23.5

17

17

4
3

4
3

20

20,00010

10

10

10,000

2016

2017

0

0

30,59730,50630,491

30,343

2016

2017

2018

2019

2020

23.1

14
4
3

13
3
3

12

7

7

8

2018

2019

2020

4

(FY)

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

Number of female managers (major companies*2)(%)

Female employee ratio

100

11,742

11,763

12,447
11,488

11,50080

68.9

Number of female managers

150

20.0

149
123

121

7.6

7.8

60

42.1

43.1

43.0

44.9

44.0

(%)

Female manager ratio

200

10,00055.2(FY)*Denotes the number of full-time employees and does not include temporary employees.

78.2

54.0

30,719*At the conclusion of general meeting of shareholders of each fiscal year

45.5

0.0

External Director

External Director ratio

Number of female employees

60
40

Part-time Director

0

(FY)

2020

15,000

80

1.0

2019

0

100

1,891.3

1,000

10

-20.0

*Ratio of interest-bearing debt to EBITDA for fiscal 2020 was negative, therefore it is omitted.

Total assets and ordinary profit to total assets (%)

2018

Number of directors (non-consolidated) andexternal director ratio

30

-60
2017

2017

15.0

0.0
2016

555

33.3

200
0

736

487

400
5.0

750

646
600

2016

(Billionsof yen)1,182.2

800

326

0

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

355

300

(FY)

Ratio of interest-bearing debt to EBITDA
Interest-bearing debt

360

-10.0

-62.1

0
2018

367

0.0

-60
2017

375

2.0

0

2016

400

1,000

4.0

4.1

20

500

6.0

49.3
5.4

(%)
8.0

100

8.4

40

129
8.3

136

15.0

8.8

10.0

5,000
0

-2.2
2016

2017

2018

2019

2020

(Billionsof yen)150
100

Cash flows from operating activities

Cash flows from investing activities

43.4

88.7

50.0

38.0

30.0

-25.4
-46.0
-50.7

-100
2016

2018

2017

Annual dividend per share

2019

(FY)

2020

Dividend payout ratio(%) (right axis)

(%)
60.0

50.0

50.0

50.0

40.0

38.1
0.8

-41.3

2017

60.0

102.3

0
-50

0
2016

(JPY)

58.2
50

0

2016

2017

2018

2019

2020

(FY)

0

0
2016

2017

2018

2019

2020

(FY)

0

Shareholder return

Free cash flows

84.8

5.0

50

-2.0

(FY)

Cash flows

20

-64.1

-57.4

-71.4

2018

2019

2020

50.0

50.0
40.0

46.2
36.2

30.0

32.1
26.4

20.0

20.0
10.0

10.0

0.0

0.0
(FY)

*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 , Kin-Ei , Osaka Aquarium Kaiyukan*2 Kintetsu Group Holdings , Kintetsu Railway , Kintetsu Real Estate , Kintetsu Department Store , Kintetsu Retailing , Kinsho Store , Kintetsu Miyako Hotels , KNT-CT Group

2016

2017

2018

2019

2020

(FY)

*1 Dividends before the reverse stock split (on October 1, 2017) are converted
based on the standard after the reverse stock split.
*2 Annual dividend per share and dividend payout ratio for fiscal 2020 are notdescribed because no dividend was paid.

15

Kintetsu Group Integrated Report 2021

Kintetsu Group Integrated Report 2021

16

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Message

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Business Activities
Transportation Business■ Number of consolidated■ Segment operating revenue

subsidiaries

breakdown

23

Maintenance ofrailway facilities 14 %companies(As of March 31, 2021)

Real Estate Business■ Operating revenue and profit(billion yen)

Other 9 %500
400

■ Proportion of total
operating revenue

4%

20.3 %

300

Taxi
services

Operating revenue

30.9
231.9

29.2
228.1

Operating profit(billion yen)
40

32.9
27.6
226.7

221.7

20

150.2

100

¥150.2billion

0

2016

2017

2018

2019

Railways

14 %

59 %

breakdown

6

Real estate
managementRealestate sales

27%

41%

companies(As of March 31, 2021)■ Operating revenue and profit(billion yen)
500

2020 (FY)10

Operating revenue

300

0¥142.9billion

200

19.3 %-20

Operating revenue

18.6
16.8

16.2

Operating profit

Real estateleasing

32%(billion yen)
20

17.9
14.8

400

■ Proportion of total
operating revenue

-10

Bus
services■ Segment operating revenue

subsidiaries

30

200
Operating revenue■ Number of consolidated

15
10

152.1

149.5

164.2

161.2

142.9
5

100
0

2016

2017

2018

2019

2020 (FY)

0

-24.6

Railways

Real estate sales and Real estate leasing

Kintetsu Railway Co., Ltd.

Kintetsu Real Estate Co., Ltd.; and others

Japan’s longest private railway network, with lines totaling around 500
kilometers, which stretches across five prefectures in the Kinki and Tokai
regions. The railway handles travel between and within the regions’ cities, aswell as tourism and local transport services.

Our real estate sales business provides homes for people in the region’s three largest cities that match their lifestyles. Through the use ofenergy-saving equipment and other measures, we are considering how best to coexist with the natural environment as part of our operations.
The Real estate leasing involves running office buildings as well as major terminal buildings on Kintetsu lines and retail buildings. We arecontributing to community development, particularly centered on our stations.
We also offer real estate brokerage and other solutions and proposal-based contract work for upgrade renovations. In addition, using thegroup’s combined strengths, we have expanded our business to also cover agriculture, solar power generation, golf, and life care facilities.

Bus services

Shimakaze

Series-21

Kintetsu Bus Co., Ltd.; Nara Kotsu Bus Lines Co., Ltd.;
Bocho Bus Company Limited; and others
Operating in the Kinki, Hokuriku, and Chugoku regions, we run fixed-routebus services for local residents, long-distance buses bound for various partsof Japan, limousine buses, and sightseeing buses.

Nara Kotsu Bus
Lines “Shijin” Series

Taxi services
Kintetsu Taxi Co., Ltd.; NARA KINTETSU TAXI Co., Ltd.;Mie Kintetsu Taxi Co., Ltd.; and others
As a means of transport for the local society, we have expanded ourbusiness with a focus on the areas along Kintetsu lines, and have installed
dedicated taxi stands at stations, hotels, hospitals, and other locations, so as
to satisfy customers’ needs.

An accessible(universal design)taxi

recolax Tomigaoka

Kintetsu Farm Hana-yoshino

Plat-HOME(platform) for Housing and Living in
Gakuenmae

Kintetsu Hanayoshino Solar Power Plant

Kintetsu facilities “Cleaning in Abeno HARUKAS”

KINTETSU-COMMUNITY “Acti Meguro Ekimae”

Maintenance of railway facilities
Kintetsu Electrical Engineering Co., Ltd.; Kintetsu Railcar Engineering
Co., Ltd.; Kintetsu Track Engineering Co., Ltd.;ALL NIPPON ENGINEERING CONSULTANTS CO., LTD.; and others

ALL NIPPONENGINEERINGCONSULTANTS
design management
for publicly accessible passageways at
Yamato-Saidaiji
StationWe support the safe operation of railroads by utilizing our expertise inelectrical equipment work, railcar servicing, track maintenance, railway
structure design, etc.

Other transportation-related business

Kintetsu facilities Co., Ltd.;KINTETSU-COMMUNITY CO., LTD.; and others

We operate ferries that connect Shikoku and Kyushu via the shortest
route, rent cars at major Kintetsu stations, operate theme park and amusement park along Kintetsu lines, and engage in transportation advertising.

We manage and operate a wide range of facilities,
including office buildings, commercial facilities, hotels,
cultural and sporting facilities, and condominiums.
Parque España Parade

Kintetsu Group Integrated Report 2021

Laurel Tower SAKAISUJI HOMMACHIReal estate management

Kokudo Kyushi Ferry Co., Ltd.; Kintetsu Rent-A Lease Co., Ltd.;
Kintetsu Leisure Service Co., Ltd.; AD KINTETSU CO., LTD.; and others

17

Kintetsu Ginza Chuo-dori Building.
(I–III)

Kokudo Kyushi Ferry “Suzukaze”

Kintetsu Group Integrated Report 2021

18

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Message

Merchandise Sales Business■ Number of consolidated■ Segment operating revenue

subsidiaries

breakdown

10Stores &restaurantscompanies(As of March 31, 2021)■ Operating revenue and profit
Operating revenue

Operating profit(billion yen)

500
400

379.9

300

■ Proportion of total

200

operating revenue
Operating revenue

42.4 %

395.8
7.0

10

393.6

392.7

Strategies ofmajor companies■ Segment operating revenue

subsidiaries

breakdown

Initiatives ofMateriality

Corporate
Information

38

companies(As of March 31, 2021)

Aquarium 2%
Cinema 3%

0

2016

5

5.1

2017

2018

■ Operating revenue and profit(billion yen)

Operating revenue

500

470.8

478.6

400

9.8

9.6

Hotels 18%

313.1

7.7

5.3

■ Number of consolidated

2019

300

■ Proportion of total
Operating revenue

2020 (FY)¥114.1billion

0

Operating profit

481.8

-5

70%

10

Department stores

Hotels

Kintetsu Department Store Co., Ltd.; and others

Kintetsu Miyako Hotels International, Inc. andKintetsu Enterprises Company of America

We operates 10 department stores and 3 other commercial facilities, including the Kintetsu Department Store Main Store Abeno Harukas,
stores at Osaka-Uehommachi and Yamato-Saidaiji, and at other major Kintetsu stations. We have also expanded into 14 different industries
through franchising, and in terms of our e-commerce endeavors, we operate a site that proposes a wide range of goods unique to our department
stores to customers within Japan. For customers overseas, we are selling through popular online shops, and focusing our efforts on sellingJapanese cosmetics, hygiene products, and other items.

5

114.1

100
0

2016

2017

2018

2019

0

2020 (FY)-5-3.6
Travel 77%

-4.6

15

6.1

15.5 %

Department
stores(billion yen)

449.2

200

operating revenue

100¥313.1billion

Value
Creation

Hotel and Leisure Business(billion yen)

30 %Kintetsu Group
Overview-49.2

We operate the Miyako Hotels & Resorts brand of hotels in Japan andoverseas. We offer a wide range of attractive services from casual urban
hotels to luxury hotels.

The Westin Miyako Kyoto

Miyako City Osaka Hommachi

Kinki Nippon Tourist

CLUB TOURISM FIRST

Apollo Building and Lucias Building

Abeno Apollo Cinema

Osaka Aquarium Kaiyukan

Interactive Aquazoo, NIFREL

Travel agency
KNT-CT Holdings Co., Ltd.;Club Tourism International Inc.; and others
We organize tours emphasizing tourists’ safety and peace of mind, on thetheme of providing memorable experiences and encounters for people
around the globe. We help customers of any age, young and old alike, toachieve self-actualization and build a circle of friends through travel.
Japanese and Western confectionary counter at Main
Store Abeno Harukas

Hoop

International online shop

CinemaStores & restaurants

Kin-Ei Corp.

Kintetsu Retailing Co., Ltd.; Kinsho Store Co., Ltd.; and others
We operate a number of various retail and dining formats, including convenience stores, supermarkets, restaurants, and cafes, particularly inthe areas along Kintetsu lines. Recently, we have been working to create new businesses such as a craft beer business, as well as expanding our
shopping support services such as online supermarkets and mobile supermarkets, in order to support the richness of daily life.

We operate the Abeno Apollo Cinema, an urban cinema complex that
contributes to the liveliness and development of the Abeno area through its
realistic atmosphere.

Aquarium
Osaka Aquarium Kaiyukan Co., Ltd.
Kaiyukan, one of the world’s largest aquariums, and NIFREL, an interactive “aquazoo”, have been well received by many customers as facilities
where they can experience the charm of living things and nature.

Harves Yamamoto Store

19

Kintetsu Group Integrated Report 2021

Edogawa Naramachi Branch

YAMATO Craft Beer Table

Kintetsu Group Integrated Report 2021

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Message

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Cultural Programs and Sports Initiatives
Other

Cultural Programs■ Number of consolidated subsidiaries

3

We promote a variety of cultural programs, one of which is the Museum Yamato Bunkakan, which preserves and exhibits Oriental artworks.

■ Operating revenue and profit(billion yen)

Operating profit

Operating revenue

companies(As of March 31, 2021)

20

15.7

■ Proportion of total operating revenue

15
10

2.5 %

16.3

18.1

1.6

1.4

19.1

(billion yen)

18.6

2.0

1.4

1.5

1.2

1.0
0.5

5
0

1.5

2016

2017

2018

2019

2020

(FY)

The Museum Yamato Bunkakan
The museum was opened as part of the celebrations to commemorate the50th anniversary of Kintetsu Railway’s founding, and houses around 2,000
artworks that come predominantly from Japan, China, and Korea. The museum’s
collection contains four national treasures—including the Matsuura screens—andthirty-one important cultural properties.
Address: 1-11-6 Gakuen-minami, Nara-shi
Opened: October 1960

0

Shouhaku Art Museum
The museum collects and displays artworks and art-related materials with aparticular focus on the traditional Japanese-style paintings of three generationsof the distinguished Uemura painting dynasty—Shoen, Shoko, and Atsushi.

Kintetsu Cable Network Co., Ltd.;
Kintetsu Information System Co., Ltd.;
Kintetsu Insurance Service Co., Ltd.; and others
We provide telecommunications such as cable television, internet,
and phone services, as well as other services that are an integral
part of people’s lives. We have also expanded into areas such as
information processing and insurance agency businesses.
In April 2021, we brought SAKAE CO., LTD. into the Kintetsu
group. SAKAE produces and sells metal equipment used in the
manufacturing industry and boasts a top-class domestic market
share for its major products, which include workbenches, carts, andtool cabinets.

Address: 2-1-4 Tomigaoka, Nara-shi
Opened: March 1994

ABENO HARUKAS Art Museum
Kintetsu Cable Network

With its prime location above one of our railway terminals, this urban art
museum allows anyone to easily enjoy art and culture. The museum holds
various exhibitions, of genres such as Japanese, Oriental, Western, and contemporary art.

SAKAE

Address: ABENO HARUKAS 16F, 1-1-43 Abenosuji, Abeno-ku, Osaka
Opened: March 2014

Equity-method Affiliates 8 Companies (As of March 31, 2021)
Kintetsu World Express, Inc.;
Mie Kotsu Group Holdings, Inc.;
The Kinki Sharyo Co., Ltd.; and others

Kintetsu Rugby Football Team (Hanazono Kintetsu Liners)

Kintetsu World Express, Inc. is a comprehensive international
freight handler that handles air and sea freight and offers one-stop
logistics solutions. Through our worldwide network, we are supporting our customers’ global businesses with our optimal logistics
services.
Mie Kotsu Group Holdings, Inc. consists of companies engaged in
the distribution and leisure service industries, in addition to the core
bus and real estate businesses, and aims to achieve sustainablegrowth as a corporate group that operates a comprehensive lifestyleindustry closely linked to the community.
The Kinki Sharyo Co., Ltd. has been manufacturing and sellingrailcars throughout its history, which dates back to its founding in
1920. As well as Kintetsu Railway’s express trains and shinkansenbullet trains for the Japanese market, the company has manufactured railcars for the US and other parts of the world. It has beenhighly praised for its railcars, which combine exceptional quality,
safety, and comfort.

We deliver the joy and excitement of rugby to many people.

Kintetsu World Express“air freight containers”

Mie Kotsu “Shinto Liner”

21

Kintetsu Group Integrated Report 2021

1929
Established:
Home ground:
Hanazono Rugby StadiumComposition:
48 players and 32 support staff (as of September 30, 2021)
Major achievements: 6 appearances at the All-Japan Rugby Football Championship (won 3 times)
53 appearances at the National Company Rugby Championship(incl. 50 times in a row and won 8 times)
Appeared at the Kansai Company A League (won 17 times)
2015: 7th place in the Japan Rugby Top League
2016: 13th place in the Japan Rugby Top League
2017: 16th place in the Japan Rugby Top League
2018: 3rd place in the Japan Rugby Top Challenge League
2019: Won the Japan Rugby Top Challenge League
2020: 2nd place in the Japan Rugby Top Challenge League,
joint-9th place in the Japan Rugby Top League Playoff Tournament

Kinki Sharyo “Doha Metro”

Kintetsu Group Integrated Report 2021

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Message

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Value Creation Process
The Kintetsu Group aims to achieve sustainable growth and contribute to the realization of a prosperous
society by faithfully addressing social issues and promoting business activities through co-creation.
External Environment●

Kintetsu Group’s Corporate Philosophy, Strategies, and Businesses

Kintetsu Group Mediu
Medium-termManagement Plan 202
2024

Declining population, low birthrates and aging
society●

Climate change, increase in natural disasters●

Increasing awareness of sustainability andenvironmental protection

People moving around less by meeting face to face
Changing ways of working ● Transition from a● Reviewing the way we live
centralized urban society● Acceleration of digitization
to a decentralized● New recognition ofregional society
the value provided

Management reform for the recoveryy from COVID-19 pandemic,p,
the development of new businesses
nesses and the dramatic growth of
Kintetsu Group.

Economic Value

Sustainable Business Growth

COVID-19-related Changes●●

Basic Policy

Value Creation

Main Measures
esReal EstateBusiness

Transportation
Business

Housing, Office buildings,
Commercial facilities,
Life care, etc.

Railways,
Bus services, Taxi services,
Marine transportation, etc.

Collaboration with local
government andoutside companies

Customers
Regional communities
Shareholders & investors
Business partners

Management Resources
Employees●

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

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

Intellectual Capital●

Expertise accumulated in a wide range ofbusinesses

Human Capital●

Highly specialized human resources acrossa variety of industries
Number of consolidated employees:
approx. 30,000

Reforming ourbusiness portfolio

Development and Expansion of Business and Service
Taking Advantage of our Group Synergy.
Societal Value

Creating new
businesses andservices through DX

Implementing community
development that aims toresolve regional issues

Contribution to the realization of aprosperous society through co-creation
Hotels andLeisureBusiness

Merchandise
Sales Business
Department stores,
Stores and restaurants, etc.

Society people canwork in towns where
people want to live

Society people
can help
one another

Tourism enrichingpeople’s heart

Prosperous living
environments

Hotels, Japanese inns,
Travel agency, Cinema,
Aquarium, etc.

Financial Capital●

Stable operating cash flow creation

Social Capital

Kintetsu Group Sustainability Policy

Materiality（Priority Issues for S
Sustainability）
t i bilit ）Creating a lifestyle that anticipates changes in values
Energizing communities by enhancing the network● Enriching people and communities with travel● Contributing to the realization of a decarbonized andrecycling-oriented society●●

Extensive customer base, mainly in ouroperating area
KIPS Card members: approx. 1.75 million
Club Tourism members: approx. 7 million●

Relationships of trust with stakeholders

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●

Ensuring safety and pursing peace of mind
Bolstering our governance and risk management● Fostering diverse human resources and supporting
their activities●●“To Support Daily Life, To Create More Value.”

Capital enhancement through value circulation and sustainable value creation

23

Kintetsu Group Integrated Report 2021

Kintetsu Group Integrated Report 2021

24

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Message

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Kintetsu Group Sustainability Policy& Materiarity (Priority Issues)
In order to clarify the significance of the Kintetsu Group’s business activities, we formulated the Kintetsu Group 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 achievesustainable growth and contribute to the realization of a prosperous society through co-creation.

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

Management
Philosophy

Materiarity (Priority Issues for sustainability)

Valuecreation

Sustainability Policy

Medium-termManagement Plan 2024

Businessfoundations

Creating a lifestyle that
anticipates changes in values

Energizing communities byenhancing the network

Enriching people andcommunities with travel

Contributing to the realization ofa decarbonized and recyclingoriented society

Ensuring safety and
Bolstering ourFostering diverse humanpursuing peace ofgovernance and resources and supportingmind
risk management
their activities

Value creation

Materiarity (Priority
Issues for sustainability)

Direction to aim for

Creating a lifestylethat anticipateschanges 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, andat play.

Energizing
communities byenhancing the
networkThrough co-creation, we will enhance our transportation
network, the Kintetsu Group and regional communities, andpeople-to-people networks, while contributing to community
building and creating a vibrant city that contributes to thedevelopment and happiness of the region.

Enriching people
and communities
with travel

Through co-creation, we will discover the wonders of thehistorical culture and tourist resources along Kintetsu Line,create the enjoyment of travel, and propose travel that
resonates with the heart. In addition, we will enrich the region
by increasing outside visitors and fostering industry throughtourism.

Contributing to therealization of adecarbonized andrecycling-oriented
society

In addition to taking advantage of the high energy efficiency
and environmental superiority of railroads, we will work toconserve energy and resources in each of our businesses
and contribute to the realization of a decarbonized andrecycling-oriented society.

Ensuring safety andpursuing peace ofmind

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

Sustainability Promotion Framework
To strengthen the relationship of trust we have with all of our stakeholders—whether they becustomers, regional communities, shareholders, business partners, employees, or other—and to resolve
societal issues and raise corporate value in the long term, we have put in place our CSR Committee. The
committee is chaired by Kintetsu GHD’s president, and comprises executive officers from the company
as well as CSR representatives from throughout the group. The committee’s role is to examine policy andinitiatives toward sustainability-related issues. Most recently, it has held discussions on topics such assustainability policies, environmental targets, and health and productivity management.

Materiarity (Priority Issues for sustainability)—Identification Process
Step

Select issues

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

Step

Narrow down choice

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

Step

Rank by priority

Select issues that have particular importance for each business sector, considering dialogue withmajor 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 based on business characteristics.
Through debate with executive officers concerned and discussions by the CSR Committee,
determine themes and report them to the Board of Directors.

Related SDGs

Related societal issues
Responding to low birthrates, aging society, and declining population
Growing awareness of sustainability● Promoting innovation and technical progress●●

Business foundations

25

Bolstering ourgovernance and risk
management

Fostering diverse
human resources
and supporting theiractivities

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

Kintetsu Group Integrated Report 2021

Example initiatives
Provide products and services that contibute to new lifestyles
Provide products and services that solve lifestyle issues● Provide products and services that consider health and the environment● Develop management foundations through the use of digital technology●●

Regional revitalization through co-creation with local 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.
●

Responding to low birthrates, aging society, and declining population● Maintaining and growing the regional economic base● Maintaining and renewing critical regional infrastructure● Providing a sustainable transportation system●

Improving the attractiveness and dissemination of local tourism resources incooperation with local governments, etc.
Promote micro-tourism● Introduce new sightseeing limted express trains● Caputuring inbound demand after COVID-19● Tempt Expo/IR visitors to our operational areas●●

Promoting a sustainable tourism industry●

Maintaining and growing the regional economic baseProtection and preservation of cultural and natural heritage●

Responding to climate change●

Promoting sustainable resource usage, production, and consumption
Environmentally friendly business activities

●

●

●

We will focus on building a highly transparent and fairmanagement system in each Group company, which will leadto the realization of synergies and the provision of value. We
will also work to ensure thorough compliance and strengthenrisk management throughout the group.

A meeting of the CSR Committee●

Preventing accidents
Responding to climate change-related disasters

Deter malfunctioning of critical infrastructure● Prevention of infectious diseases●●

Quality and safety of products and services●

Highly transparent management●

Business activities in compliance with laws and ethics●

Promoting safe, secure working environments●

Promotion of energy saving
Promotion of CO2 reduction and use of renewable energy● Promotion of a modal shift● Reduction of food loss
● Management of the entire supply chain●●

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

Enhance corporate governanceThorough compliance● Strengthen risk management● Maintain and deepen relationships of trust with stakeholders●

Respect human rights● Promoting diversity and inclusiveness●●●

Expansion of education system
Responding to low birthrates, aging society, and declining population●

Improve uptake of childcare leave and prevent employees from leaving theworkforce 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 various work style reforms●

Kintetsu Group Integrated Report 2021

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Message

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Kintetsu Group Medium-term Management Plan
2024 (FY2021–2024)
The COVID-19 pandemic has undoubtedly brought about major changes in the business environment. In order to recover from the effects of thepandemic and move toward new business development, in May 2021, we formulated Kintetsu Group Medium-term Management Plan 2024.

Changes in the Business Environment Due to the COVID-19
Pandemic and the Direction of our Strategy
disappearance of tourism demand—but we recognize that others—
such as fewer people commuting to work or taking business trips, andthe expansion of online businesses—are permanent. Considering
how the business environment will alter in the future, we set threecourses of action: (1) to improve our financial soundness by
fundamentally reviewing our cost structures and replacing our assets
in order to rebuild our foundations for growth ; (2) to strengthen
profitability by developing new businesses that cater to post-pandemic society, while demonstrating group synergy; and (3), to enhance
our tolerance for risk by reviewing businesses in our portfolio that are
particularly affected by changes in individuals’ consumer behavior.

Our target of the four-year medium-term management plan starting in fiscal 2021, is management reform for the recovery from COVID-19
pandemic, the development of new businesses and the dramatic growth of Kintetsu Group. To that end, we will work on six main measures.
Fiscal 2021 will be a year of dealing with the pandemic. We will aim to return to profitability by thoroughly reducing costs and reviewing ourbusiness operation framework. Also, we will concentrate on reducing interest-bearing debts and increasing our equity capital, by off-balancing ourassets. We have set fiscal 2022 onward as a post-pandemic period, and by accelerating the development of new businesses that meet the needsof society after COVID-19, we will improve our earnig power and leading to further growth.

Basic policy
Management reform for the recovery from COVID-19 pandemic, the development of
new businesses and the dramatic growth of Kintetsu Group.
Period of the new medium-term management plan
(Operating profit)¥67.7 billion

Pandemic period(Countermeasures alongsideeconomic activities)¥49.3 billion

y
over
Rec

e
m th

ic

dem

pan

fro

¥65 billion or more

Outbreak of
COVID-19(Target)States of emergency

FY2018Business environment
Regional community
issue

Aging society● Declining population●

People moving around less
● Changing ways of working● Reviewing the way we live
● Acceleration of digitalization

Temporary
impact●Decrease in transportation demand●●

Deterioration of financial soundness
Disappearance of tourism demand●

Permanent
effectDecrease in demand for commuting and business trips●

Reconsideration of how offices are used
Expansion of online businesses●●−¥62.1 billion

Transition from a centralized urban society toa decentralized regional society

Main measures
1

Radically reviewing our cost
structure2

Early reduction of interest-bearing
debt

3Strengthening cooperation withexternal partners

4

Reforming our business portfolio

5Creating new businesses andservices through DX

To improve our financial soundness by fundamentally reviewing our cost structures and replacing our assets in order torebuild our foundations for growth
To strengthen profitability by developing new businesses that cater to post-pandemic society, while demonstratinggroup synergy
To enhance our tolerance for risk by reviewing businesses in our portfolio that are particularly affected by changes inindividuals’ consumer behavior

Kintetsu Group Integrated Report 2021

FY2021

FY2022

FY2023

FY2024Post-pandemic(New ways of living and working take hold)

Main measures

Direction of review

27

FY2020

Impact on our business●

Pandemic-promptedchangeFY2019To further growth

We were developing our businesses under the Kintetsu GroupManagement Plan, which we formulated in May 2019, but the spreadof COVID-19 has transformed the environment in which we operate.
Our financial foundations took a hit—with our biggest losses ever infiscal 2020—and the business environment that we had based ourplan on changed beyond recognition. That made it necessary for us torevise our strategy. In order to put the group back on a sustainablegrowth trajectory, we determined that the fiscal years to 2024 would
be a period of recovery from the pandemic, and that we would haveto rebuild our business foundations. As such, in May 2021 we revised
the group’s management plan.
Some of the changes the pandemic brought are temporary—for
instance the drop in demand for transportation and the complete

Our Target and Main Measures

Major initiatives
Topic1

Lowering break-even point by revising business
operation frameworks

Topic2

Collaborating with Blackstone
for two-pronged hotel business
Topic3Topic3Topic4
6

Implementing community developmentthat aims to resolve regional issues

Expanding business fields throughmergers and acquisitions (M&A)

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

Reduction of unprofitable divisions

Developing
real estatebusinessusing special
purposecompanies(SPCs), etc.

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

Expanding our online shopping business

Topic5

Promoting redevelopment ofareas around stations

Kintetsu Group Integrated Report 2021

28

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MessageFinancial Strategies

Kintetsu Group
Overview

place the highest priority on reducing interest-bearing debt. We will
freeze strategic investments that were to be allocated mainly to new 3
major projects by reviewing the scale and timing of the projects, andwe will review our investment plan for growth investments on a zerobasis. With an eye on the post-pandemic society, we will implement
our plan while carefully examining the details of necessary
investments, such as the creation of new businesses and services
through DX and urban development aimed at solving regional issues.
We will also limit investment in maintenance and renewal as much as
possible, giving top priority to ensuring safety.
With regard to shareholder returns, we aim to resume dividend
payments as soon as possible by building up our equity capital.

Topic

Railways

Quickly establish management foundations that will secure stable profits even if revenue decreases post-pandemic

Development of an efficient business operation framework
Using digital technologies, we will reduce costs while raising safety, stability, and peace of mind.
● By rationalizing station operations and adjusting the number of personnel, we will promote reductions inpersonnel expenses (reducing staffing from 7,200 employees at the end of FY2019 to 6,600 by the end of FY2024).
●●

As well as further cost-cutting for branch lines, we will conduct a radical review of the future of our operation framework.

Revision to our timetables that matches how customers use our lines
Revision to timetables on July 3, 2021:
Reduce the number of trains, especially at night, move up the last train, cancel some limited express trains,and change to irregular trains according to demand

Major revision of capital expenditures

Capital expenditures planRef.: Pre-review plan
(FY2019–2023)(FY2021–2024)
(%)
30
25

Other 10For strategy

20¥80 billion

Merchandisesales

For growth

19.7
800

20

23.0

16.4

15

600
400

10

200

5

0

0

Mar. 2019

Mar. 2021

Mar. 2025

Prepandemic

Duringpandemic

Final yearof plan

By bringing outsourced tasks inside the company, and promoting multitasking, we will raise personnel efficiency.
● We will promote the use of digital technologies for advertising.
●Establish low-cost operation system for regional core stores and suburban stores

Total:¥420 billion
Hotels & leisure

1,000.0

Total:¥210 billion

Total capital
expenditures

30

For growth

Transition from the department store model to become a commercial developer, with a focus on tenants, for low-cost store operations¥170 billionFormaintenance/
update¥120 billion

Transportation
Real estate 50

100

For
Maintenance/
updateIn-station stores and restaurants

Withdrawal from loss-making stores and promote rationalization through digitalization

Withdrawal from unprofitable stores

Personnel number adjustments and other measures tooptimize personnel expenses●

Restaurant business:
Close 22 stores from a FY2019 total of 102●

Service area business:
Withdraw from 4 areas from a FY2019 total of 8

¥210 billion¥90 billion

Create a new business model by reforming the cost structure and business portfolio

In FY2021 onward, reduction of sales, general, and administrative expenses by ¥6 billion from FY2019 levels (a decrease of 10%)

This medium-term
management plan

1,182.2

1,000

Corporate
Information

Minimize capital expenditures while placing top priority on ensuring safety
FY2021–2024 planned capital expenditures:
Pre-pandemic: ¥129.2 billion; Post-revision: ¥71.4 billion (a decrease of ¥57.7 billion)

Equity ratio

1,055.9

Initiatives ofMateriality

1 Lower our break-even point

Department stores
Changes in interest-bearing debt and equity ratio(Billion yen)
1,200

Strategies ofmajor companies

Principal Initiatives of the Main Measures

During the period of this medium-term management plan, we willplace the highest priority on reducing interest-bearing debt, which
increased due to the pandemic and restoring equity capital. By doing
so, we aim to early improve our financial soundness. At the end of
fiscal 2020, we held 1.1822 trillion yen in interest-bearing debt, andunder the plan our target is to reduce this to less than 1 trillion yen by
the end of fiscal 2024. Also, we plan to restore the equity ratio fromthe 16.4% at the end of fiscal 2020, to over 23% by the end of fiscal
2024. To achieve these goals, we will not only accumulate profits bystrengthening our earning power through a drastic review of our cost
structure and new business development that cater to post-pandemic
society, but also by off-balancing our assets as necessary.
In hotels business, we are working with Blackstone to operate some
hotels on a specialized contracted management basis. Meanwhile, inreal estate business, we are putting some of our assets towardspecial purpose companies (SPCs). In June last year, we sold off ourshares in an equity-method affiliate, Fukuyama Transporting Co., Ltd.
In the future, we will work to enhance our financial foundations, suchas by disposing of non-core assets.
Capital investment will be curbed as much as possible, as we will

Interest-bearing debt

Value
Creation¥170 billion

Hotels●

We will adjust personnel numbers with store closures and withdrawals
From 930 employees at the end of FY2019 to 740 by
the end of FY2024●

We will promote the efficiency of tasks by reviewing tasks and using
digitalization

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

Targets and management indicators
Consolidated indicators

FY2018 results

FY2020 results

FY2024 targets

Operating profit (loss)¥67.7 billion−¥62.1 billion¥65 billion or moreInterest-bearing debt

¥1.0559 trillion¥1.1822 trillion

Less than ¥1 trillion

8.8 times−

8–9 times

19.7%

16.4%

23% or more

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

Optimization of labor costs through personnel adjustments, etc.
●●

Withdrawal from unprofitable hotels●●

Reference indicators

We will reduce personnel expenses by ¥2.5 billion by FY2022(compared to pre-pandemic levels).

Travel agency
FY2018 results

FY2020 results

Reduce expenses for FY2022 onward by ¥20 billion compared to FY2018 levels

FY2024 targets

Business selection and reorganization
ROE

9.6%

−17.3%

approx. 10%

ROA

3.5%

−2.2%

approx. 3.5%

*1 ROE (return on equity) = Profit attributable to owners of parent/equity*2 ROA (return on assets) = Ordinary profit/total assets

29

Kintetsu Group Integrated Report 2021

Miyako City Tsu (Closed February 28, 2021)
Kashihara Kanko Hotel (Closed July 31, 2021)

Reduction of expenses and review of operations framework*EBITDA = operating profit + depreciation

Consolidated indicators

We will gradually reduce the number of employees and contract
workers over the course of the FY2022 due to restraints on new hiringand natural attrition.
From 2,400 employees at the start of FY2020 to 2,080 in FY2022

Reduction of the number of stores for individual travelers● Consolidation of branch stores for group travel●●

Personnel number adjustments●

Reduce the number of enrolled personnel by around two-thirds by theend of FY2024, from approx. 7,000 at the end of FY2020

Integration of head office and other back-office divisions throughcorporate restructuring

Kintetsu Group Integrated Report 2021

30

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MessageTopic

2 Dual-axis management of hotel business

Topic

In the hotel business, which has been greatly affected by the COVID-19 pandemic we will continue to promote our business with both management with assets, which is essential for group business management, and non-asset management, which specializes in operations.
Flagship hotels such as The Westin Miyako Kyoto and Shima Kanko Hotel, where we own the assets, will continue to operate as the core of ourhotel business. At eight hotels—including Miyako Hotel Kyoto Hachijo and Hotel Kintetsu Universal City—we will eliminate risks associated withholding assets, by running them as contracted managers specialized in the fee-based business.
Through collaboration with Blackstone, with its rich experience in hotel management overseas, we plan to enhance our global competitivenessas we look to the post-pandemic world. We will roll out our combined expertise to all of our hotels and raise the standard for marketing power for theentire Miyako hotel chain.

Hotels inseparable from railway facilities
Hotels leased from third parties

Eliminate risks associated withowning assets, specialized in thefee-based business

Management
outsourced
to us

Contracted hotel operations

Two-pronged businessContinue management withassets as the core of the business

Owned/
directly managed

Flagship hotels

The Westin Miyako Kyoto
Osaka Marriott Miyako Hotel● Sheraton Miyako Hotel Tokyo
●

●

●

●

●

Sheraton Miyako Hotel Osaka●

Miyako City Tokyo Takanawa●

Shima Kanko Hotel The Classic
Shima Kanko Hotel The Bay Suites

Miyako City Osaka Tennoji●

Miyako Hotel Kyoto Hachijo
Hotel Kintetsu Universal City
● Miyako Hotel Hakata● Kobe Kitano Hotel●

Miyako City Kintetsu Kyoto Station

Miyako City Osaka Hommachi

●

●

●

●

Future policies:●

Businesses dependent on
people’s movement

We will push ahead with M&A designed to strengthen our B2B businesses and create group synergies.

●

To accelerate the creation of new businesses, we are promoting open
innovation using CVC.

Businesses not dependent on
people’s movement

Developing real estate business using special
purpose companies (SPCs), etc.

Residents of the area along
Kintetsu lines● Tourists from inside andoutside the area along
Kintetsu lines

Acquisition of new properties in the Tokyo
metropolitan area and in core regional cities

Asset management

AcquiredSold

31

Increasing
number ofproperties

Owned

Property management

Kintetsu Group Integrated Report 2021

Brokerage

SAKAE produces and sells metal equipment used in the manufacturing industry and boasts a top-class domestic
market share for its major products,
which include workbenches, carts, andtool cabinets.
● Aim to maximize group synergies throughcollaboration with group companies engaged in interior decoration work andbuilding maintenance businesses.

●

Kintetsu Groupfacilities/stores● Non-groupfacilities/stores

Offering purchasing data, etc.
Publishing corporate information, etc.

Data usage

Attracting customers to real-life facilities and stores*A range of digital services that users can access with their smartphones, such as MaaS,
contactless payments, online shopping, e-tickets, online customer service, and online reservations

5 Promoting redevelopment of areas around stations

Kawachi-Kosaka Station
In the 13,000 m2 area we own close to thestation, we will consider the local characteristics as we push ahead with a comprehensive
development plan (replacing the dilapidated
Kosaka Buildings 1–5, which have stood formore than 50 years).

Gakuemmae Station
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 more than 500 condominiums and more than 100 house plots.

4

2
1
Kosaka Buildings1–5
3
5
Kawachi-Kosaka
Station

Kyoto

Kintetsu-Nagoya

Expo 2025
Osaka, Kansai
Osaka-Namba
OsakaYumeshima Abenobashi

KintetsuNara

Yoshino●

SAKAE’s Osaka Factory

Kashikojima

Osaka-Uehommachi Station

Yamato-Saidaiji Station

We continue to explore the potential of
the Uehommachi terminal as a transport and tourist information base, withthe opening of the integrated resort in
Yumeshima.

In line with the redevelopment of the area tothe south of Yamato-Saidaiji Station, we areworking with local authorities and others topromote the integrated redevelopment of station and surrounding area using the land weown around the station.

Development site

mmae
Gakue on
Stati

Kintetsu-Yokkaichi Station
We are currently looking at how
to develop the site close to thestation where the Star Islandcommercial facility once stood,
and will promote a development
plan that ensures the result
becomes a regional landmark,taking into account how best tocommercialize the concept ofmulti-transport hubs promotedby the Ministry of Land, Infrastructure, Transport and Tourism.
Kintetsu department
store
Former site ofStar Island

uion
tets
Kin i Stat
h
kaic
Yok

Developing
recyclingoriented
businesses

Providing digital services*

On April 1, 2021, SAKAE CO., LTD. joined the Kintetsu GroupStrengthening businesses inadjacent fields

Developed

Digital services platform for the area along Kintetsu lines(sightseeing type service + living type service)

Expansion of business fields through M&A

Diversification of areas
and assets

Redevelopmentof areas aroundstations

In existing businesses, shift to a business model that is not overly dependent on the movement of people through structural reforms.

●

B2C BusinessCorporate
Information

Through systematic redevelopment in the vicinity of major stations along Kintetsu lines we will promote urban development aimed at the efficient
provision of living and social infrastructure, such as smart cities and compact cities, adapted to regional characteristics and scale.

Our business composition is biased toward the B2C market and businesses based on people’s movement. And so the impact of COVID-19 has
been significant. In the future we will reform our business structure to cultivate and strengthen the B2B market and businesses that are not reliant
on movement, thereby strengthen our tolerance to risk.
First, we aim to diversify our areas and assets by expanding our real estate business through the use of SPCs, etc., and expanding the numberof properties that we are involved in. In addition, in order to strengthen our B2B businesses,on April 1, 2021, as part of our M&A efforts, we brought
SAKAE CO., LTD.—a manufacturer and seller of metal equipment for the manufacturing industry—into the group. By working with our group companies that operate in the interior design and building maintenance industries, we hope to maximize the group’s internal synergy.

B2B BusinessInitiatives ofMateriality

4 Developing a digital services platform for the area along Kintetsu lines

Miyako Hotel Yokkaichi

3 Changes in our business portfolio

Strategies ofmajor companies

●

Topic
Topic

Value
Creation

We will develop a new platform that will act as a regional DX base, using digital technologies to connect consumers with facilities and stores by
seamlessly providing MaaS, contactless payment, and other digital services as a one-stop solution.
For consumers, this means they will be able to access a variety of digital services in one place. For example, we are examining how we could sell
travel packages online pre-travel, provide local information and the ability to change reservations mid-travel, and then make recommendations for
future destinations post-travel. On the other hand, in terms of benefits for facilities and stores, we will use the customer contact points we sharethroughout the group to allow us to share information at optimal times. Building new contact points with consumers in this way will lead to an increasein opportunities for revenue.

Miyako Resort Shima Bayside Terrace
Miyako Resort Okushima Aqua Forest● Miyako Hotel Gifu Nagaragawa● Miyako Hotel Amagasaki●

Kintetsu Group
Overview

Multi-transport
hub project1

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Message from the External Directors
I would like to contribute to the33

Contributing to a prosperous

strengthening of management by taking

society by utilizing theadvantage of the characteristics of aadvantage of the Kintetsu

corporate group that is loved by theGrouppeople along the railway lines.
Kunie Okamoto

Toshiko Katayama

External Director

External Director

Contributing to society while making the most of
our great tourism resources

The group’s management should strike a balance
between independence and cooperation

It is important to make proposals on how to live
from a long-term perspective.

Expectations for efforts to realize a prosperous
society through co-creation

I am interested in history, and when I was working in Osaka asa young man, I used to take Kintetsu trains to Nara and Kyoto on
my days off. Now that I am involved in management as an external
director, I feel that the fact that the Kintetsu lines is a treasure troveof history, culture and nature is a major attraction. The COVID-19
pandemic has had a tremendous impact on the area, but I believethat an important theme for the Kintetsu Group is to make use of
the tourism resources along the railway lines to attract inbound andother tourists, as Japan aims to become a tourism nation.
On the other hand, the fact that the group’s operational area is sovast, and only in parts densely populated, which can be a negative
factor in terms of management. However, railroads are a public
institution, and they need to continue to play a role for the benefit ofsociety, while taking into consideration their profitability. To this end,
I believe that three points should be kept in mind.
The first is the SDGs. Among 17 themes set forth in the SDGs
as global issues, it is important for all executives and employees toshare which themes we should make effort and contribute as the
Kintetsu Group. In particular, we have to take the initiative in working
on the significant issues today such as climate change and DX.
The second is the CS, as Customer Satisfaction. It isn’t enoughfor us to be satisfied with current efforts at CS. What we have to do
is to clarify what and how we focus on relationship with customer for
CS compared to other companies.
The last is ES, as Employee Satisfaction. I believe that asolid bond between the management and employees, where themanagement talks about their dreams and the employees work hardwith passion, will lead to the improvement of CS.

Major issue for us is how to proceed with our businesses under
the situation of decreasing population. First of all, we must focus on
tourism. Attracting tourists, both domestic and foreign, is a business
opportunity for the Kintetsu Group. In addition, it is important to havea strategy that build strong relationships of trust with local residents,
so that they look to the group as a one-stop provider for every
aspect of their lives. ABENO HARUKAS, with its concentration ofvarious functions, is contributing to improving the quality of life incentral and southern Kansai, with Tennoji as its base, and we needto expand these efforts.
Therefore, group management becomes important. As declining
population, low birthrates and aging society, it is extremely importantfor businesses to cooperate with each other. On the other hand,since the Kintetsu Group is consist of so many industries withdifferent characteristics, each business needs to be independentand strong in order to compete and gain an advantage in eachindustry. Under the holding company structure, it is important tostrike a balance between grouping and independence in order toachieve efficient and effective group management.

I believe it is important to make proposals that contribute to
the sustainable growth of the Kintetsu Group over the medium tolong term based on my expertise as a lawyer. In particular, since
one of my specialist fields is consumer-oriented managementthat enhances the social value of the Kintetsu Group’s diverse
businesses through co-creation and collaboration with consumers,
I would like to bring new insights based on two-way communication
between consumers and companies to the management decisionmaking process.
One of the characteristics of the Kintetsu Group is that it supports
people in all aspects of their lives, including transportation, housing,food, and tourism, and has been a corporate group that has been
loved by residents along its railway lines for many years. In order tofulfill this role, the board of directors is making decisions quickly toensure the soundness of the company’s finances and management,even during the COVID-19 pandemic which is highly evaluated.
As for future challenges for the Kintetsu Group, while the
COVID-19 pandemic is expected to continue and the businessenvironment is difficult to predict, we have to stay close to thechanges in consumers’ lifestyles and further enhance our featuresand strengths as a corporate group. As a company closely
connected to the lifestyles of residents along the railway lines,
we must respond to consumer needs, and at the same time, wemust propose ways of living from a long-term perspective, with aview to the future of society as a whole, including responses toglobal environmental issues. I think it is an important task to create
communities along the railway lines where people can have dreams
for the future and can live with peace of mind for years to come.

I believe that what the Kintetsu Group should do is to pursue
consumer-oriented management. In the past, many companies haveconducted monitoring systems to listen to customer opinions as partof their marketing activities, but in order to gain the satisfaction andtrust of consumers, we should emphasize two-way communication
through honest discussions with consumers. Specifically, throughsmall-group dialogues and all kinds of contact with consumers,
consumers and companies should learn more about each other’sideas and discuss until they are satisfied to deepen mutual
understanding. Although opinions may sometimes clash, the value
lies in the fact that through repeated dialogue, both parties gain
new insights, think together about the future of society and true
affluence, come up with answers, and work together to create a newprosperous society.
The Kintetsu Group has set forth “Realization of a prosperous
society through co-creation” in its medium-term management plan,and I have high expectations for the company to put into practice theconsumer-oriented management that I have been emphasizing. In
addition, with the accelerating changes of the times, it has become
difficult for a single company to address social issues on its own.
Therefore, it is essential to cooperate and collaborate with a wide
range of stakeholders, including consumers, external companies,
and local governments.
As the importance of external directors increases in corporate
governance, I will strive to enhance the corporate value ofthe Kintetsu Group by understanding the importance of their
responsibility and fulfilling our mission by contributing to the further
vitalization of the Board of Directors.

Kintetsu Group Integrated Report 2021

As an external director
From the standpoint of an external director, I try to makeproposals on management from a third-party perspective as
much as possible, based on the perspectives and values I havecultivated over the years. In doing so, I try to base my comments onwhat today’s society demands, and also on the soundness of thebusiness and the risks involved, based on my own experience as afinancial institution.
Through discussions at the Board of Directors, I will work toensure that the Kintetsu Group continues to contribute to society.

Kintetsu Group Integrated Report 2021

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Message

Kintetsu Group
Overview

Value
Creation

Initiatives ofMateriality

Strategies ofmajor companies

Corporate
Information

Strategies of Major Companies

Kintetsu Railway Co., Ltd.
We faithfully support our customers’ daily lives, particularly
through our railway business, and we provide peace of mind andbetter ways of living.
Takashi Tsuji Representative Director and President
Business Overview

Medium- and Long-term Strategies

We possess a total of 501.1 kilometers of track, spanning five prefectures (Osaka, Kyoto, Nara, Mie, and Aichi) in the Kinki and Tokai regions.
Those tracks connect some of the area’s major cities, as well as some of Japan’s most special tourist destinations—Kyoto, Nara, and Ise-Shima justto name a few. As well as supporting tourism, we also help millions of customers with their daily lives, taking them to and from work and school. As
part of our leisure business, we also run sites such as Shima Spain Village and Ikoma Sanjo Amusement Park. Our work brings excitement and joy
to customers in Japan and overseas, including those along the railway lines.

Internal Environment
Trust built up over many years in our operational
area and through railway transportation● Excellent limited express train network● A treasure trove of tourist destinations, including
5 World Heritage Sites

Future ideal

One year on from the Meihan Limited Express Hinotori’s debut
Population along the railway lines declining andaging● Aging of infrastructure such as vehicles andbridges●IssuesRecovery in tourism demand●

Enhance lineup of products and services that respond to
demand, such as investing in sightseeing limited expresses●

Capturing demand for transportation from residents along theline and demand from domestic and overseas customers forsightseeing along the railway lines●

Examine running trains directly to Yumeshima for the opening

We went for a sense of the special by making a more relaxed travel
environment to further stimulate demand

Utilize tourism resources along the railway lines to expand the●Promotion of moving in and settling down by increasing theBlue Symphony, sightseeing
limited express(between Osaka-Abenobashi
andnd Yoshino)

population of exchange
value of the line

Kintetsu-Nagoya
World Heritage
Historic Monuments●

Rationalize and systemize tasks for a framework that requires

Hinotori, Meihan limited express(between Osaka-Namba andKintetsu-Nagoya)
Kintetsu Nagoya)of Ancient Nara
Kintetsu-Nara

Shimakaze, sightseeing
limited express(between Osaka-Namba, Kyoto,
and Kintetsu-Nagoya, andKashikojima)

Ise-Shima National Park
YoshinoLabor shortages

between Yumeshima and tourist attractions on the railway lines

Kyoto

OsakaNamba
OsakaAbenobashi●

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

Kashikojima

fewer people to manage
Large-scale disasters

Capturing demand for sightseeing and outings

Reforming business management throughdigital transformation (DX)plans

At the moment we are focusing on attracting domestic tourists,

We will promote station operations that utilize AI, robots, andNew pandemics

including micro-tourism, and we will make preparations when
inbound tourism will recoverother digital technologies

We will promote Mobility as a Service (MaaS) to strengthenties with secondary transportation methods

the situation at facilities and in railcars and aid us inmaintenance

We are examining introducing dynamic pricing that can

We will formulate sales strategies based on big data findings

respond to varying levels of demand for different seasons,days of the week, times, and destinations

We will promote research into driverless

Promotion of earthquake reinforcement and other disaster

Contribution to decarbonized society

prevention measures, and development of crisis management

Use trains as a highly efficient, low-environmental-impact

systems, including periodic reviews of business continuity

means of transport●

Establish and review business continuity plans that coverinfectious diseases●

Reduce the risk of infection by implementing thorough hygiene
measures and reducing face-to-face work

Kintetsu Group Integrated Report 2021

We are looking into operating a regular direct train service

Yumeshima●

35

limited express, Aoniyoshi

form 11 trains)

Decline in population along the railway lines, change inlifestyle brought about by the COVID-19 pandemicof the IR●●

In April 2022, we will begin operating a new sightseeing

In February 2021, we completed introducing all 72 railcars (which

Main risks and countermeasures

train
Holding of the World Expo and opening of the Integrated
Resort (IR)●Aoniyoshi, sightseeing
limited express(between Osaka-Namba,
Kintetsu-Nara, and Kyoto)

External Environment
Main business opportunities and initiatives

We will flexibly respond to changes in society (declining population, aging society, decentralizedsociety) and continuously provide transportation services that are safe and offer peace of mind.

Create tourism demand by developing attracting train●

Strengths

The railway business will remain at the heart of the Kintetsu Group’s role as a form ofsustainable infrastructure that support movement and interaction in the region.

The use of sensing technologies will allow us to monitor

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Kintetsu Real Estate Co., Ltd.
Our business covers everything from managing office buildings orcommercial facilities to supporting where people live. This allows us
to make lifestyle proposals that fit in to changing ways of living.
Takahisa Kurahashi Representative Director and President

Business Overview

Medium- and Long-term Strategies

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

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

Future ideal

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

Strengthening the area’s appeal
We have established strategic bases in the form of major Kintetsu stations and their immediate vicinities, and by strengthening the connections
between these areas we will maximize the appeal of the entire operational area.
We will draw together residents, shops, and offices to develop an area where people can lead rich lives and bring about a positive environmentthat attracts further revitalization in a virtuous circle.

Internal Environment

Integrated strengths of the group
Brand power in the Kintetsu Group’s operational
area● Varied business expansion as a comprehensive
real estate developer●

Strengths

Improvement of brand power outside theoperational area by expanding business scale
and areas● Acquisition of positive assets in major cities● Entry into new business sectors

We are using the group’s collective strengths and promoting●●

Issues●co-create, both in real life and online, and so support local
communities, including by promoting member-based communities
through Lifestyles-as-a-Service (LaaS)

development that takes the region’s traits, scale, and issues●

into accountWe will create appealing places through the appropriate use of
methodologies such as smart cities, eco-cities, and space-efficient
cities

Shift toward becoming an issue-resolution-based business●

Through our community developments along Kintetsu lines, wehave built up the expertise needed to resolve issues in cities andsuburbs, and we aim to become a consultancy business that canoffer solutions to national issues●

We will expand into the life care business as a response to theaging of society

We will expand our network of “Sumai to Kurashi no Puratto
HOME” integrated sales bases to 27 locations along Kintetsu
lines

External Environment
Main business opportunities and initiatives●

Main risks and countermeasures

We will provide opportunities for local residents to interact andWe will integrate our real estate brokerage and housingbusinesses to make proposals for new home and daily lives

Concept behind “Sumai to Kurashi no Puratto HOME”

Integration
Redevelopment of areas around major Kintetsu stations●

Promote community development that accommodates regional
traits and issues

Decreasing demand for homes in the long term as the
population declines●

Provide specialized homes, such as residences for the elderly●

Expand bases to offer one-stop solutions for queries about

Development of fluidized real estate business using
special purpose companies (SPCs), etc.
Diversify assets and business areas●

Enter into fee-based businesses, such as asset management
and property management

Lifestyle diversification●

Make proposals for people’s lives—at home, at work, and at

Residents

home and daily lives●●

Brokerage businessInformation
gathering

Housing business
Detached house
Renovation
Remodeling● Reconstruction●

Buying●Selling

Support local communities by providing opportunities for local

Residents

Interaction & co-creation

residents to interact and co-create
Lessening demand for leasing of office buildings orcommercial facilities as lifestyles change●

Strengthen leasing capabilities●

Propose and create services that meet new needs

Challenging ourselves to take on new business sectors

play—that cater to changing lifestyles
Investment in positive assets in Tokyo metropolitan area andmajor cities via SPCs

⇒We will increase the number of properties that we are involved

fee-based businesses such as asset management and property
management
Promotion of the work vacation project in the Ise-Shima area

in, and expand opportunities for revenue, particularly through37

Kintetsu Group Integrated Report 2021

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Kintetsu Department Store Co., Ltd.
We will create and offer new value in response to drastic changes
in our customers’ lives.
Takuji Akita President
Medium- and Long-term Strategies

Business Overview

We will be a platform for people to lead richer lives.

Our main commercial area is established along Kintetsu lines. 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: And,
Hoop, and Uehommachi YUFURA. While expanding the number of stores we run in the food, home, and service industries — predominantly
through franchising such as in the case of our Tokyu Hands, FamilyMart, and SEIJO ISHII stores; we are also working to create new businesses,
one example being online stores aimed at domestic and foreign customers.

Future ideal

Medium- and long-term target

Internal Environment
Impressive brand recognition and reputation
along Kintetsu lines● Mobilization of refined customers in the area
● Spirit of meticulous hospitality cultivated at our
department stores● A regional hub which connects directly to major
cities and train stations

We will develop ourselves as a lifestyle platform that helps bring about a more sustainable society; byproviding consumers with comprehensive services, we will create richer, more worthwhile ways of living.

We will shift to being a co-creative multi-style developer that enriches lives.
We are working to change from “product” provider to “value” provider

Maximizing the appeal of “Harukas Town” in
the Abeno and Tennoji area

Using the strengths of our department stores tocreate profitable businesses●

Strengths

Declining of population in rural and suburban
areas● Progress of digitalization● Changes in values, lifestyles, and behavior

We will make reforms to further strengthen the position of
the flagship store Abeno Harukas●

Issues●

We will promote the community development business in the
Abeno and Tennoji area●

External Environment●

Main business opportunities and initiatives
Diversification of customer behavior and lifestyles●

Advance autonomous businesses (franchises, etc.)●

Strengthen online shopping●

Make out-of-store sales functions more customer servicefocused

Development of digital technologies
●

●

39

●

Initiatives in the regional co-creation business

Kintetsu Group Integrated Report 2021

Develop “Town centers” around stores in key
regions and suburbs●

We aim to grow our businesses by expanding the number of storesin our existing business lines and starting new ones●●

Promote reforms to cost structures●

Changes to social and economic circumstances●

Develop a new business model based on the group’s medium-●

Disasters●●

Put in place a crisis management framework and formulate
BCPs●

We will switch to commercial service complexes that incorporate
urban development functions which consist of lifestyle function,commercial function, and community function; and form the core ofcities and towns in front of our stations
Efficiency improvements for our store management systems
We will transition from just the department store model to become acommercial developer, with a focus on tenants, for low-cost store
operations
Regional co-creation business initiatives
We will cooperate with local industrialists, producers, organizations,and governments to co-create new businesses that will revitalize
the region

Strengthening of our online shopping business
Domestic online shopping
Our online store provides a wide range of daily necessities and otheritems with gifts, food, and cosmetics being the most popular ones
International online shopping
We will strengthen sales via our online shopping site aimed
predominantly at Chinese customers, and bolster our business in theB2B market, for example by launching stores on buyer-focused sites

Switch to “Town centers” (commercial service facility
complexes incorporate urban development functions)sales and labor management

corporate structure and our business portfolio

Develop “Town centers” around stores in key regions andWe will endeavor to stimulate inbound tourism demand
We will attract individual travelers and visitors from South East Asia

We are working to develop a new retail format by combining
multiple franchises with our own food-, home-, and service-based
business system

Strive to implement preventive measures for both in-store

term management plan and promoting reforms to thesuburbs●

Extension of the COVID-19 pandemic

connect at any time

Return to key regional cities●

We will advance our community development business on bothtangible and intangible fronts through cooperation with neighboring
companies and facilities●

Main risks and countermeasures

Establish touch points that allow anyone, from anywhere, toBuild foundations for diverse relationships

We will develop the store so that it can attract customers from allaround the world

Advance independent businesses (franchising, etc.)
Taking on the challenge of franchising⇒We have launched the first Japanese store of popular Taiwanese
miscellaneous goods shop, “Maji Treats(Shinnou Seikatsu)”●

Make out-of-store sales functions more customer servicefocusedStrengthening functions and foundations forsupporting growth
Expansion of diverse relationships and convenience throughthe use of digital technologies●

We will put in place a digital environment that allows customers toorder and pay at any time and from anywhere●

We will develop a mechanism by which the rich lineup of products
available at our flagship store Abeno Harukas can also bepurchased at other stores●

We will introduce one-to-one communication based on histories ofcustomers’ behavior
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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

KINTETSU RETAIL HOLDINGS CO., LTD.
Through the retail and restaurants businesses, we create futuresthat excite to support customers’ lifestyles.
Shigenobu Oya Representative Director and President

Business Overview

Medium- and Long-term Strategies

Kintetsu Retailing, a subsidiary of Kintetsu Retail Holdings, and includes a number of businesses, mostly within Kintetsu Railway stations.
These include convenience stores, high-quality food supermarkets, gift shops, sundry goods, and other goods shops. We also have a leasing
business, various food and drink establishments, and roadside service stations alongside expressways. We have also gone into new businessareas such as craft beer. Kinsho Store operate our supermarket business under the brand names Supermarket Kinsho and Harves. In termsof our international business, we set up a joint venture, Kintetsu Restaurant International Co., Ltd. in Taiwan, and opened the eel restaurant
Edogawa.

Internal Environment

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

Future ideal

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

Revitalizing stores within our stations andalong Kintetsu lines

Expanding new businesses and shifting gears
to chef-less operations

We will bring about regional revitalization through thediscovery, processing, and selling of appealing regional

We will develop new sales channels, such as stores withlimited staffing and online
sales, for the craft beerbusiness

Kintetsu Retailing

Kintetsu Retailingproducts

Convenient locations inside train stations● Development of original-brand stores in therestaurant business●Business expansion limited due to location insidestations● Review of restaurant business during the
COVID-19 pandemic

We will develop systems by which in-station, real-life storesand online shopping sites send customers to one other

Kinsho StoreWe will develop our station agency business via in-station
convenience store staff●

Strengths

In-station stores and restaurants

Kinsho Store

IssuesBrand power and trust as part of the Kintetsu Group● High convenience due to location close to or under
stations●●●

Aging of customers
Acquisition of support from next generation ofcustomers

We will expand the store area within or underneath stations
such as Yamato-Saidaiji or Ujiyamada

Supermarkets

We will shift gears for therestaurant business as wemove to highly profitablechef-less operations bylaunching new specialized, Yamato Craft Beer Switch Kintetsu-Nara
Station Storelimited-menu stores and (craft beer store with limited staffing)
franchising in the café businessWe want to be a lifestyle partner that brings customers abundance to their dining tables.

Future ideal

External Environment
Main business opportunities and initiatives
Advancement of digital technologies●

Raise efficiency of register payments, e.g., self-service registers●

Form new customer contact points through apps, etc.

Changes in lifestyles●

Push ahead with launches of craft beer taprooms●

Expand restaurant business aimed at solo diners●

Fuse real-life stores with online shopping

Recovery of tourism demand●

Attract demand to goods stores and restaurants at tourist destinations

Main risks and countermeasures

Kintetsu Group Integrated Report 2021

From pursuing costs to pursuing value

Decrease in customers, labor shortages, and increased
wages due to the declining population
Economic recession and deflation
Bipolarization of consumption●

Raise efficiency of, and rationalize, tasks through reviews anddigitalization●

Implement labor-saving initiatives by introducing DX●

Improve skills through multitasking

Changes in lifestyles●

41

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

Switch to a business line that operates stores that cater to new lifestyles

Conventionally, we have appealed to customers who
prioritize low costs and loyalty points, but we will develop
products under our private brand, Harves Quality, andpropose new dishes to appeal to customers who prioritizevalue
We will gather and analyze customer data to create sales
areas that connect with customers, and implement one-toone marketing

Creating personalized shopping experiencesthat customers will choose
We will strengthen our
proposal-based sales
activities (responding tocustomer concerns throughmeasures such as dailychanging menus)
We will strengthen sales
support services, such as
online and mobile supermarkets

Example of development at the delicatessen
sales point at the Harves Tennoji store

We will create new customer contact points
through mobile phone apps

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Kintetsu Miyako Hotels International, Inc.
In addition to clarifying service concepts in each of our businesscategories, we will meet our diverse customers’ needs and provide alevel of hospitality that exceeds all expectations at excellent facilities.
Takashi Nishimura Representative Director and President

Business Overview
Kintetsu Miyako Hotels International runs Miyako Hotels & Resorts, a chain that contains everything from casual-service hotels in cities toluxury resort hotels. Our 23 hotels, and around 6,200 rooms, provide a wonderful service for our guests in three business categories: Miyako
Hotel, which are full-service city-based hotels; Miyako City, which are casual-service hotels; and Miyako Resort full-service resort hotels. Our
goal for the future is to be able to pass down tradition and dignity, while always continuing to evolve. Many of our historic hotels are rooted in theregion, and going forward we wish to be a hotel chain that customers choose, and to get there we will continue to quickly respond to customers’
needs.

Medium- and Long-term Strategies

Future ideal

We will improve the appeal of the Miyako brand and raise its status as a hotel managementcompany.
We will provide hospitality that has been refined by 130 years of tradition, but which adapts to the times
and continues to evolve.

Internal Environment●●

Strengths●

A 130-year-old hospitality tradition
Numerous hotels rooted in the region, such as
The Westin Miyako Kyoto and the Shima Kanko
Hotel

Strengthening of operational capabilities●

IssuesThe Miyako brand, which caters to diverse
customer needs, from city hotels to luxury hotels●

Strengthening of marketing and businessdevelopment capabilities

Raise management capabilities to further enhance the
Miyako brand image
Strengthen sales of products aimed at the “new normal”

Further improving the Miyako brand reputation
Response to greater use of IT and digitaltechnologies

Through brand collaboration with the world’s largest hotel
chain, Marriott, we will strengthen our sales capabilities
via Marriott’s brand recognition and their member
organization

Boost sales of afternoon teas
Expand lineup of takeout and online products● Shift to co-working spaces in our food reception areas●●

Joint-brand projects:

Reopen the domestic market
Bolster sales of long-stay plans and region-specific plans● Create products aimed at wealthier customers, such as suite plans●

External Environment
Main business opportunities and initiatives

Main risks and countermeasures

Recovery in tourism demand

Extension of the COVID-19 pandemic

Cooperate with the region to publicize the excellence of
local food and the charm of other tourism resources● Provide services that are safe and offer peace of mind●●

Development of digital technologies

Enhance convenience for customers by using IT toautomate existing services● Updating the member system to improve customer
management and increase sales●

Labor shortages●●

Promote multiple business styles to produce a systemthat allows a limited workforce to manage operations andpush for greater employee diversity

The Westin Miyako Kyoto●

Sheraton Miyako Hotel Tokyo●

Osaka Marriott Miyako Hotel●

Sheraton Miyako Hotel Osaka●

Through the alliance with Blackstone, which has extensive experiencein overseas hotel management, we will accumulate global
competitiveness in anticipation of a post-pandemic world. We will also
apply the expertise we have gained to all of our hotels and through thisraise the standard of our marketing capabilities throughout the entire
chain

●

In the growth phase of post-pandemic, we will drive new developments
at our facilities through assetless management specialized on
operations

The Westin Miyako Kyoto reopened after arenovation

Strengthen sales of products aimed at the “new normal”
Reopen the domestic market●

Intensifying competition

Apply expertise gained cooperating and collaboratingwith others in the industry to the entire chain● Raise the standard of our marketing and sales
capabilities to further enhance the Miyako brand●Changes in lifestyles

Offer flexible services that adapt to the “new normal,”and other lifestyle changes● Value our legacy of tradition but provide hospitality thatalways meets the sensibilities of the time●

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Kintetsu Group Integrated Report 2021

Spa Kacho uses
natural hot springwaters
SPA lucida at Miyako Hotel Hakata

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

KNT-CT Holdings Co., Ltd.
We provide safe and reliable travel under our credo that “we will
create great encounters and excitements for people all over theworld”.
Akimasa Yoneda President & CEO

Business Overview

Medium- and Long-term Strategies

Our business is operated under 2 brands of Club Tourism (CT) and Kinki Nippon Tourist (KNT).
CT provides individual themed travels which are based on hobbies and preferences. KNT provides dynamic packages that cater to the diverse
needs of individual travelers. Also, it operates corporate travel business using specialisms cultivated in MICE and Sports-related businesses,
and group travel business, particularly in educational travels and regional exchanges that make the most of regional traits. As a comprehensive
travel agency, we provide one-stop solutions that can cover everything from arrangements for individual travelers to group travels and runninginternational conferences.

Internal Environment

Expansion of the Club Tourism business●

Strengths●

Planning and proposal capabilities●

Business networks of educational institutions
and corporations●

Membership organization especially for frequent

As a comprehensive travel agency, we havedeveloped a full-line and full-specification
business which has resulted in the diversification

Issuesof our management resources●

travelers and active seniors●

Future ideal

We are the company that to offer enjoyments and excitments in a variety of scenes in everyday
life as well as any extraordinary needs.
Through our travel business, we have cultivated proposal-making capabilities, expertise, and networks.
And we have organically fused these with various alliances to produce a form of support for people’s lives
that offer fun and excitements in everyday life.

Insufficient business efficiency and innovations
due to slow utilization of IT and DX

Supplier network that extends to all over Japan●

Insufficient collaborations between KNT and CT

External Environment

Making the our travel sales up by activating ourmembership organization which boasts around 7 million
members who consist of a wide range of age groups, andby strengthening our product planning ability
We have just launched the “New Club 1000” business. It
is a lifestyle-related business that makes use of an online
platform to bring together people who share the samehobbies and interests, and offer various services. Throughalliances with other organizations, we are able to connect
like-minded people either through online or offline
Examples of New Club 1000 communities

Main business opportunities and initiatives
Increase in numbers of active seniors●

Responding to the diverse needs of customers with avariety of themed travels based on original planningcapabilities

Change in lifestyles

Appealing to a wide range of age groups by planning
products that meet new needs of travels● Providing various hobby-based services throughassorted alliances●

Drop in travel demands due to the pandemic

Developing safe and reliable travel alternatives such as
online educational field trips● Expanding “New-style Tours” by Club Tourism which
includes the COVID-19’s countermeasures●

Improvements of individual travel business
Shift from shop sales to any online sales such as theKNT Dynamic Packages
Expanding range of products that convey the charmsof the regions through collaborations with the KNT-CT
Partners Association which includes around 3,800 hotels,
public transportations, and other accomodations
Developing a new type of online contacts, new “Travel
Avatar Concierges” which are able to offer online
guidances and supports for travelers, and withdrawing
from shop-based systems and promoting DX

Fishing Club
Sales channels

Subscription service called “Club Tourism PASS”

Formulating countermeasures based on the corporate
IT security standards, and monitoring all our business
operations by themStrengthening ties with affiliated institutions to enhance
products lineup offered during travels● Boosting online sales by improving our websites● Introducing the new type of online customer service
system by the new “Travel Avatar Concierges”● Expanding into the new business markets (through BPO,
etc.)

●

Creating BCPs (Business Continuity Plans) andconducting periodical drills

New Travel Avatar Concierges
Pre-trip

Branch/ Shop
OnlineCustomers Reception●

Natural disasters / Terrorist incidents

Kintetsu Group Integrated Report 2021

Train and Railroad Club

Offering one-stop solutions to various demands for new
travel styles in the field of corporate travels, such as“workation” and new type of MICE including a hybrid
MICE here in Japan and overseas

IT Securities

New Normal●

45

Main risks and countermeasures

Expansion of corporate travel businessCallcenters

Consultation for
selecting travelcommodities

During the trip
Experts for
Customer
Avatar travel operations services
for 24
Concierges
hours(online travel
Post-trip
consulting
Following-up withservice)proposals for next
Partners
trips

Travel Concierges provide smooth customer experience support

Improvement of group travel businessWe will shift from existing conventional full-line andfull-specification sales to the highly specialized andcompetitive business by offering educational travels,
regional exchange programs and other solutions thatmake the regions be attractive

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Supporting Lives Initiatives

Community Development Initiatives

Creating a Lifestyle that Anticipates
Changes in Values

Energizing Communities
by Enhancing the Network

Kintetsu Ise-Shima Workations
Kintetsu Real Estate, Kintetsu Miyako Hotels International and Kintetsu Railway are working together to examine new ways of living andworking, one measure that they introduced in the autumn of 2020 was
Kintetsu Ise-Shima Workations at Miyako Resort Okushima Aqua
Forest, which required the help of several other companies.
In November 2021, Kintetsu Group began operating Workation
Trains with the Raku (Series 20000) train dedicated to groups, so thatusers could make the most effective use of their travel time. Goingforward, the group will continue to strengthen internal collaboration
and aims to discover new ways of working.

promote more movement and more consumption in Kintetsu Group’s
operational area.

Club Tourism PASS
Club Tourism International has collaborated with KDDI Corporation
and, in October 2021, they launched Club Tourism PASS, a subscription service that suggests new ways of having fun, including travel,and provides a series of enjoyable services, mainly online but withsome offline.

Improved Osaka-Nagoya transportation
services

Community development in the Abeno/
Tennoji area
Standing 300-meters tall, ABENO HARUKAS is Japan’s tallest skyscraper, a multi-story complex that includes a railway station, department store, art museum, offices, a hotel, observatory, and muchmore. A stone’s throw away, Ten-Shiba, the entrance area to Tennoji
Park, is a lawn area with restaurants, a hostel, and more besides.
More recently, Kintetsu Department Store Main Store Abeno Harukas began major renovations in 2021. The Kintetsu Group is working
with neighboring companies and facilities to further develop the Tennoji area and is pushing forward with community development thatbrings people together.

Cottage at Miyako Resort Okushima Aqua Forest

Teleworking-friendly environments

In February 2021, Kintetsu Railway finished introducing all 11
trains of Hinotori, the new Meihan limited express. The trains provide
a luxurious space from which to enjoy the journey, bringing new value
to the Nagoya-Osaka route. It also led to an improvement in the limited express service overall, with Hinotori—which stops at very few
stations—leaving Osaka-Namba Station for Kintetsu-Nagoya Stationon the hour every hour, and the Urban Liner—which stops at all the
major stations—departing at half past the hour.

Kintetsu Real Estate is proposing homes with environments thatsuit working from home. As well as selling residences in Gakken-Nara-Tomigaoka that come with special teleworking-friendly
Kokochi spaces, the company is incorporating teleworking lounges
into its new condominium buildings.
Kintetsu Retailing meanwhile, runs the Caffè Ciao Presso Due,which has private rooms, within ABENO HARUKAS.
Hinotori

Urban Liner

Meihan limited express Urban Liner enables joint
passenger-freight transportation

Caffè Ciao Presso Due

Promoting movement and consumption
with startups
In April 2021, Kintetsu Venture Partners invested in KabuK Style,which has developed a subscription accommodation service, HafH
(Home away from Home). Between KabuK Style’s HafH service andKintetsu Group’s transportation and other services, the two are aiming to respond to a new need—to live and work wherever one wants—that has risen out of changes to lifestyles and ways of working, and to

Kintetsu Group Integrated Report 2021

In cooperation with Fukuyama Transporting Co., Ltd., the Urban
Liner began operating joint passenger-freight services in July 2021.
This is a new service that can transport daily necessities and othergoods between the centers of Osaka and Nagoya on the same day.
This makes effective use of free space on an existing train service,raising convenience throughsame-day, safe and securedeliveries, while resolving
issues of driver shortages
and helping to reduce CO2
emissions.

Luggage being loaded

Initiatives ofMateriality

Corporate
Information

Mobile supermarket Tokushimaru
For those customers who find it difficult to visit one of its supermarkets, Kinsho Store operates a Tokushimaru, a “mobile supermarket”
service that loads up a small van with uses a van to deliver small dishes and daily necessities. It started in Ikoma in 2018, but by October
2021 there were 17 vans in operation in Osaka, Nara, and Kyoto
prefectures. For elderly customers
who live alone, the service is also
a way of keeping an eye on themand making sure that they are allright.
Tokushimaru

Yell Rail—crowdfunding aimed atrevitalizing Kintetsu’s operational area

Introduction of the new Meihan limited express Hinotori
completed

47

Strategies ofmajor companies

ABENO HARUKAS and Ten-Shiba

Making department stores centers ofregional co-creation
Kintetsu Department Store has been building up “town centers”
around department stores in key regional cities or suburbs as it aims
to switch its stores there into combined commercial service facilities
that fuse lifestyle, commercial, and community functions. This will allow the company to work on regional co-creation activities and contribute to regional revitalization. In February 2020, Kusatsu Storesigned an industrial recovery agreement with Shiga Prefecture, while
Kashihara Store concluded a comprehensive partnership agreementwith Kashihara City in May 2021.

“Sumai to Kurashi no Puratto HOME”
expansion
In April 2021, Kintetsu Real Estate rolled out “Sumai to Kurashi no
Puratto HOME”, which was opened in Gakuemmae as a one-stop
provider of lifestyle support and information on real estate brokerage
and renovations, to 27 locations
along Kintetsu Lines. In conjunction with this, the company ispromoting the membership-based
community “LaaS” and contributing to building up local communities.
LaaS members’ lounge

In March 2021, AD KINTETSU launched Yell Rail, a purchase-based
crowdfunding service. More specifically, Yell Rail is a service that was
created with the concept of supporting the area and that offers assistance to projects being run by clients who are facing issues. One example of a project it has helped is Shika Gami, which aims to protect
the deer and environment of Nara
Park. In the future, it will help various projects to revitalize Kintetsu’s
operational area.

Yell Rail

Sustainable regional railways
The Kintetsu Group operates a number of local lines that have too
few passengers to survive alone. It can run these railways in a sustainable manner through dedicated public-private partnerships thatuse national systems, while the facilities and railcars belong to local
authorities or other bodies. Iga Railway; Yoro Railway; and Yokkaichi
Asunarou Railway are the railway business operators and they provide services that remain close to their local areas and helping maintain, and even raise, activity in their towns.
Most recently, in August 2021, Yokkaichi Asunarou Railway received assistance from Yokkaichi City and was able to introduce atransportation IC card system, which allows it to also sell IC commuter passes, and offer the convenience of cashless, contactless payment.

Iga Railway

Yoro Railway

Yokkaichi Asunarou Railway

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Tourism Initiatives
Enriching People and Communities
with Travel
Nara Area

Ise-Shima Area

Nara and our operational area have taken center stage in Japan’s
history, and the area is full of history and culture, home to three
UNESCO World Heritage sites and countless national treasures.

The area is home to a varied wealth of attractions, including the 2,000-year-old Ise
Jingu shrine, picturesque coastal scenery, homeland of cultured pearls and wealthymarine and agricultural products that has led to the region being dubbed “Miketsukuni.”

Tsu

Aoniyoshi

To Kyoto

Limited express network

To Nagoya
To Osaka,
Kyoto & Nara

The Aoniyoshi service will debut in April 2022 as a sightseeing
limited express that directly connects Osaka, Nara, and Kyoto. The
aim behind the service is to stimulate demand by proposing travel
where the journey is itself the purpose for visitors to Nara and inbound tourists after the pandemic. With the relaxed interior, the moment you step into the railcar it is like being transported back to the
Tenpyo era (729–749 CE).

Here we take a look at some of the varied limited expresses
that take passengers between Ise-Shima and Osaka, Nagoya,
and Kyoto, including the purpose in itself, the Shimakaze sightseeing express, the Ise-Shima Liner, and Vista Car. At Nagoya
and Kyoto these connect to the Shinkansen bullet train line.

Meotoiwa

Ise-Nakagawa
Nara Palace Site

Yamato-Saidaiji
Ikoma

Matsusaka

Kintetsu-Nara
World Heritage

Pleasure cruise of Toba Bay

Historic Monumentsof Ancient Nara

To Osaka

Iseshi

Kofuku-ji temple
and Sarusawa-ike Pond

World Heritage
Buddhist Monumentsin the Horyu-ji Area

To Nagoya&
Ise-Shima

UjiyamadaIsuzugawaMie Pref.

Toba

Ise-Shima
National Park

Ujibashi Bridge at Ise Jingu

Yamato-Yagi
Yamanobe-no-michi Trail

Kashiharajingu-mae

Blue Symphony
The Blue Symphony service is a well-loved sightseeing express
that offers a higher-quality, grown-up journey from Osaka to the World
Heritage site at Yoshino and the mythical ancient capital of Asuka.
In September 2021, Blue Symphony celebrated five years of operation and through a campaign in collaboration with the local area, itplans to help with a boost in tourism.

Shima Spain Village

Ugata

Nara Pref.
Ishibutai Burial Mound
Azalea on Mt. Katsuragi

YoshinoYoshinoKumano
National Park

Kashikojima
Sunset over Ago Bay

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

Shinto Liner
In April 2021, Mie Kotsu Co.,
Ltd. began operating the Shinto
Liner, an articulated bus service
that directly connects the twomain Naiku and Geku sanctuaries. The limited express schedule allows passengers to ride
between the two quickly and in
comfort.

Ise-Shima Gastronomy

Ago Bay Marine Cab

The Shima Kanko Hotel is running
the Ise-Shima Gastronomy campaign
to protect and support local resources and demonstrate the charms offood produced in Ise-Shima.

This boat service takes passengers between Kashikojima Port andMiyako Resort Okushima Aqua Forest and offers pleasure cruises around
Ago Bay and other cruise activities.

Travel assistance that brings together
Shima food and railway journeys

New helicopter service

Kimpusen-ji temple

Kinki Cultural Association & Yamato
Cultural Association
Revitalizing the Ikoma area
Kinki Cultural Association
Kintetsu Railway in collaboration
with Ikoma City, is using retro-themed
regional branding to assist with the revitalization of the area.

The association aims to promote a love of conserving the area’s
cultural treasures and raising people’s awareness of history, and tothat end publishes a journal, Kinki Bunka (Kinki Culture) and holds
field trips to historical ruins or ancient shrines and temples.

Yamato Cultural Association

The path to Hozan-ji temple

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Kintetsu Group Integrated Report 2021

To convey the wonders of the history and culture of Nara-Yamatoji
in the Tokyo metropolitan area, the association holds monthly lecturesand lectures for the public.

In cooperation with Shima City, we areselling discount train travel packages thatallow passengers to savor the winter flavors of Shima’s food between November
2021 and March 2022. The campaign
aims to encourage tourism, local production and consumption, and railway travel,
and uses funds from Shima City.

In collaboration with AirX Inc., we are offering a special set planthat includes direct helicopter flights between Tokyo and Ise-Shima(using a heliport close to Shima Spain Village) and accommodation at
Kintetsu Group facilities. In the future, we will consider offering tourism services related to the World Expo andthe IR and will work with an eye on the next
generation of mobility.

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Environmental Initiatives
In order to contribute to the realization of a decarbonized and recycling-oriented society, we are promoting various initiatives such as energy

Kintetsu Group Environmental Targets for FY2021–2030

saving, CO2 saving, resource saving, and recycling, aiming to achieve the “Kintetsu Group Environmental Targets” formulated for fiscal 2030 andcarbon neutrality by 2050.

(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 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, andtherefore aims for environmentally friendly corporate management.

*Scope of coverage

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 and resource 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.

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 makes up 95% or more of total emissions by KintetsuGroup Holdings and all 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

The Kintetsu Group’s environmental promotion framework

Energy use and CO2 emissions: results and future targets
・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

CSR Committee

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

Energy use (crude oil equivalent)

Chair: Kintetsu Group Holdings’
president
Members: Executives from majorgroup companies

Kintetsu Group Holdings Co., Ltd.

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. Goingfurther, 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 to their respective
business and their supply chains.

・Determines environmental policies(Thousand kl)

・Sets environmental targets and verifies results
400

・Examines individual company initiatives

373
(100)

375
(101)

367
(98)

360
(96)

355
(95)

326
(87)

・Acts as an information exchange
・Examine environmental impact data
・Set environmental targets
・Implement environmental training
・Enact environmental initiatives related to their own business

Status of achievements of Kintetsu Group medium-term environmental targets (FY2016–2020)

200

100

0
FY2015FY2016FY2017FY2018FY2019FY2020Medium-term environmental target results
Medium-term environmental targets

FY2017
Results

FY2018Results

FY2019Results

FY2020Results

FY2020Targets

CO2 emissions(Thousandt-CO2)
800

774
(100)

Figure in parentheses: index (100 = FY2015 levels)

750
(97)

736
(95)

Number of group companies that:(1) Set environmental targets

58

58

54

54

54

54

(2) Implemented environmental training

40

47

52

51

48

54

(3) Examined results for energy and resource use

50

54

54

54

54

54

2. The Kintetsu Group will aim to reduce energy and resourceuse* at group companies in FY2020 by at least 5% compared to
FY2015 levels.(*Electricity, water, paper, and other resources)
Cut achieved and number of companies

-1%
27

-2%
28

-3%
36

-4%
35

-5%
45

-5%
54

3. The Kintetsu Group will aim to reduce CO 2 emissions (total andintensity) in FY2020 by 5% compared to FY2015 levels.

Total- 3.1%

Total- 5.0%

Total- 16.6%

Total- 28.4%Total- 37.1%

Total
- 5%

4. The Kintetsu Group will aim to have all group companies
operate in an environmentally conscious way with respect totheir respective business in FY2020.
Number of companies

34

37

42

45

47

47

Kintetsu Group Integrated Report 2021

FY2030(Target)Upper figure: emissions in thousand t-CO2

FY2016
Results

1. The Kintetsu Group will aim to achieve a 100% implementation
rate for important environmental targets in FY2020.

51

Over 20% reduction

300

646
(83)

600

555
(72)

487
(63)

Over 40% reduction

400

Virtually zero
emissions200

0
FY2015FY2016FY2017FY2018FY2019FY2020

FY2030(Target)2050(Target)Kintetsu Group Integrated Report 2021

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Agreement with the TCFD’s recommendations

Climate-change-related governanceIn August 2021, we announced our agreement with the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD). Climate change is a major societal issue, and so we conductbusiness with a focus on ensuring our railway is more energy-efficientand environmentally friendly than those of our competitors. We arealso working to further reduce our environmental impact, which will
help bring about a decarbonized, recycling-oriented society. We willcontinue to push forward with analyzing potential climate change scenarios and formulating strategy. As well as disclosing appropriate information via our website or other sources, we will work on groupwide
measures that take a long-term perspective toward climate change,
and contribute to efforts to achieve the Japanese government’s targetof a decarbonized society by 2050.

We have established our CSR Committee as a way of developing
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 thelong term. The CSR Committee is chaired by Kintetsu Group Holdings’ president and comprises Kintetsu Group Holdings executives
and CSR-responsible executives from major group companies. The
committee’s roles include formulating policy and targets related to environmental protection issues (including climate change) and oversees their implementation. The Board of Directors, meanwhile, is
responsible for managing business risks, which include the risk presented by climate change. Important matters, such as investing tostrengthen the resilience of infrastructure against climate change risk,
are discussed at the individual boards of directors at Kintetsu Railway
Co., Ltd. and other companies.

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

2 Environmental Data
CO2 emissions by business (FY2016–2020)
CO2 emissions by business (total and intensity)
CO2 emissions (total)

Unit

FY2015t-CO2(1) Railway

Index
t-CO2

(2) Buses, etc.

Index
t-CO2

(3) Facilities

Index
t-CO2

Total

Index

CO2 emissions (intensity)

Unit(2) Buses, etc.
(3) Facilities

384,000
98.5
68,47098.5
297,76594.5
750,23596.9

FY2015t-CO2/Thousand km
Index
t-CO2/Thousand km
Index
t-CO2/Thousand km
Index(1) Railway

FY2016

390,000
100
69,480100
314,934
100
774,414100

FY2016

1.350
100
0.726
100
0.144
100

1.339
99.2
0.751
103.4
0.137
95.1

FY2017FY2018380,000
97.4
67,12096.6
288,603
91.6
735,72395.0
FY2017FY2019337,000
86.4
66,376
95.5
242,34777.0
645,72383.4
FY2018

1.324
98.1
0.758
104.4
0.136
94.4

FY2020289,000
74.1
63,35091.2
202,17464.2
554,52471.6

266,000
68.2
44,71064.3
176,75656.1
487,466
62.9

FY2019

1.179
87.3
0.754
103.9
0.115
79.9

FY2020

1.000
74.1
0.753
103.7
0.093
64.6

0.943
69.9
0.750
103.3
0.081
56.3

・Covers specific transport industries or specific industries that have particularly high energy use and must make periodic reports under the Energy Conservation Act.
・CO2 emissions figures are those reported by each company to the Ministry of Land, Infrastructure, Transport and Tourism or Ministry of Economy, Trade and Industry.
・“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;

Climate-related strategies

and Nara Kotsu Bus Lines.
・The total CO2 emissions for these 12 companies makes up 95% or more of total emissions by Kintetsu Group Holdings and all consolidated subsidiaries.
・“Intensity” is total CO2 emissions per single unit, which varies by industry (m2 in the case of floor surface area and km for distance run by railcars, buses, etc.).

We determine and evaluate risks and opportunities related to climate change for the Kintetsu Group’s major companies. In the future, we willpress ahead with scenario forecasting and scenario analysis to evaluate the degree of impact on our businesses.

Risks●Transition risks (risks associated with the transition to a decarbonized society)

Measures &regulations

・Potential rise in energy procurement costs with introduction of carbon taxes
・Potential rise in costs relating to adhering to regulations, e.g., ZEB (net Zero Energy Buildings)

Market・Potential rise in energy procurement costs

Reputation

・A delay in implementing environmentally focused business activities could estrange customers

・The intensity for “Railway” and “Buses, etc.” is CO2 emissions divided by distance traveled in kilometers. For “Facilities,” emissions are divided by floor surface area in m2.

CO2 emissions by scope (FY2016–2020)

FY2020 energy use and CO2 emissions

The CO2 emissions produced by the Kintetsu Group are split into three
categories: Scope 1 (direct emissions from fuel use), Scope 2 (indirectemissions from electricity and other energy usage), and Scope 3 (indirectemissions 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. We have detailed our fiscal 2020 emissions by scope below.

Acute

Chronic・Temperature rises could cause passengers to stay at home, decreasing railway sales and sales atcommercial facilities, etc.
・Potential rise in air-conditioning costs for railcars and office buildings

CO2 emissions by scope
Scope 1
Scope 2
Scope 3Total

53

Products &services

・Potential rise in passengers choosing energy-efficient, low-environmental-impact trains and buses
・Potential sustainable business growth and improved income/outgoing balance if authorities logically offer
greater support for energy-efficient, low-environmental-impact trains and buses or promote a modal shift・Sales may rise if customers choose environmentally friendly condominiums or houses

Kintetsu Group Integrated Report 2021

MWh
Thousand m3

t
kl
kl
kl
kl
GJ
GJ
t-CO2

(Unit: t-CO2)

FY2017FY2018FY2019FY2020

FY2020 waste production

58,191
549,181
64,722672,094

59,772562,257
65,019687,048

57,884551,456
132,916
742,256

53,285527,586
156,454
737,325

46,881
477,452
108,976
633,309

General waste
General waste*Total for major group companies

Industrial waste
CO2 emissions (FY2020)

・Improved efficiency through technical innovations could lead to reduced costs
・Development of energy-saving technologies might result in reduced costs

1,117,451
16,512
579
245
6,839
1,581
17,134148,058
12,917,016
468,751

Electricity
City gas
Propane
Kerosene
Fuel oil
Gasoline
Light oilCold water
Total (energy)
Total (CO2 emissions)

FY2016

Opportunities
Resource
efficiency
increases

Total of the Company and its consolidated
subsidiaries (54 companies)*CO2 emissions are calculated using emissions coefficients from Kansai
Electric Power Company.

●Physical risks (risks associated with physical changes resulting from climate change)

・Large-scale typhoons or rainstorms would lead to railway stoppages, closures for commercial facilities, andcancelled bookings for hotels and travel, leading to decreased sales
・Potential rise in repair costs for facilities and equipment that are damaged

Type

Scope 3
108,976
t-CO2

Scope 1
46,881
t-CO2

Scope 2477,452
t-CO2

Combustion residue
SludgeOil
Acid
Alkaline
Plastic
Paper
Wood
TextilesPlant waste
Rubber
Metal
Glass/ceramics
Building waste
Other
Total

Total of the Company and its consolidated
subsidiaries (21 companies)

23,039 t
Total of the Company and its consolidated
subsidiaries (21 companies)

1t
1,078 t
307 t
53 t
7t
896 t
175 t
4,740 t233 t
6,800 t100 t10,908 t
20,745 t
35,295 t
795 t
82,134 t

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

3 Energy-saving and CO2 Reduction Initiatives

4 Resource-saving and Recycling Initiatives

Percentage of stations and trains equippedwith LED lighting

Efforts to tackle food loss

The Japanese government has positioned housing complexes as
an integral part of reaching its 2030 targets for ZEH, and so Kintetsu
Real Estate will work to gradually promote zero-energy condominium
buildings.

Kintetsu Railway‘s percentage of stations and trains equipped with LED lighting
Stations(%)

In-car lights

100
80

Stations

60

51.8
36.6

40

63.3

57.5

In-car lights

20.0
20

0

0.0

2.2 0.6 5.6

2012

2013

11.0
4.4
2014

14.2
11.3
2015

17.4
2016

Introduction of electric buses

21.0

24.7

2017

2018

28.5

30.0

2019

2020

Solar power generation
Kintetsu Real Estate Co., Ltd. is running its power generation business from solar power farms in six locations: Iga, Shima, Ise, andNabari in Mie Prefecture; Oyodo in Nara Prefecture; and Oita in Oita
Prefecture. Between them, the six sites produce a total of approx. 33
GWh a year, which is equivalent to the amount used by around 6,800
normal households.
As well as its 28 existing sites—including Ise-Futami Megasolar“Hikari no Machi”—Sanko Real Estate began power generation operations at Tsu Megasolar “Mori no Machi” in October 2020. The company’s sites produce approx. 140 GWh, around 38,900 households’
worth.
Bus stations belonging to Nara Kotsu Bus Lines Co., Ltd. and Mie
Kotsu Co., Ltd., the Sheraton Miyako Hotel Osaka, and other facilities
also have solar panels installed.

In August 2021, Kintetsu Bus Co., Ltd. made use of a fund supported by the Ministry of Land, Infrastructure, Transport and Tourism thataims to regional transportation more environmentally friendly, to introduce electric buses. The buses will start operating in the spring of2022 on two routes: between Osaka-Uehommachi Station and JR
Momodani Station, and between Yaenosato Station in Higashi-osaka
and Higashiosaka City Medical Center. These bus services are forecast to save around 428 metric tons of CO2 over the course of the next
decade. Furthermore, the buses’ batteries can be used as emergency
power supplies in the event of a disaster.
Mie Kotsu has been running large-scale electric buses service—
which was later rolled out nationwide—in Ise since March 2014, andin March 2020 the buses had a Pokémon makeover inside and out.

An electric bus being introduced by
Kintetsu Bus

In order to reduce food loss, Kintetsu Miyako Hotels International,
Inc. is implementing a range of measures throughout the food ordering, cooking, and serving processes, including more precise ordering,making effective use of food scraps left during cooking, and providing
more appropriately sized portions.
In May 2020, the company put up posters in all the group’s hotels
to raise awareness, and will continue to work on creating hotel foodenvironments that delight.
Kinsho Store Co., Ltd. has been collecting leftover food produced
during cooking and processing at stores and recycling it as animal
feed.
Initiatives to combat food loss are also underway at Kintetsu Department Store Co., Ltd. and Kintetsu Retailing Co., Ltd.

Effective use of food waste as animal feed
At Nifrel, which is run by Osaka Aquarium Kaiyukan Co., Ltd., they
have been cooperating with their neighbor in the Expocity complex, Daily Qanat Izumiya LaLaport Expocity, since December 2020, to make effective use of ingredients that don’t make it into products to sell by using
them as animal feed at Nifrel. As part of Nifrel’s environment enrichment
activities, staff are giving the animals special foods and toys and finding
novel ways to give them food, to stimulate the animals and ensure theylead exciting lives. Being able to give them seasonal foods that vary fromtheir ordinary food plays a part in those efforts.

Interior of a Mie Kotsu electric bus©2021 Pokémon ©1995-2021, Nintendo/Creatures Inc./Game Freak Inc.

Corporate
Information

Staff wearing the new uniforms

Tidal restoration efforts in Ago Bay
Ago Bay, which lies within the Ise-Shima National Park, has lostaround 70% of its tidal flats to land reclamation. Now, as part of community development efforts to create a more productive, more biodiverse coastal region, sea water is being brought into fallow areas as
an experiment in how to reintroduce tidal flats.
In 2012, the Ministry of the Environment, from the perspective ofcoastal scenery and preserving and fostering biodiversity, opened
water gates to allow sea water into a fallow area of the Miyako Resort
Okushima Aqua Forest site, beginning an initiative to reintroduce tidal
flats. The campaign was advanced by cooperation between the Ministry of the Environment, Kintetsu Miyako Hotels International, Inc.,
members of the fishing industry, and affiliated government bodies andin April 2015, Shima City joined in and efforts are still ongoing on behalf of the Ministry of the Environment.
Since opening the water gates, there have been
periodic surveys of thewildlife and environment,
and wildlife observation
sessions and other nature
activities have been put
on for local residents andhotel guests.

Looking for wildlife on the tidal flats

Ise-Futami Megasolar Hikari no Machi

ZEH-M Oriented certification for Laurel
Court Momoyamadai The Residence
In December 2020, Kintetsu Real Estate’s condominium building,
Laurel Court Momoyamadai The Residence, was the first in thenorthern part of Osaka Prefecture to receive ZEH-M certification.
This certification recognizes condominium buildings that havemassively improved heat insulation and other features, that maintain quality indoor environments through high-efficiency equipment
systems, and that try to reduce primary energy consumption for theentire building—including shared areas—by 20% or more. Laurel
Court Momoyamadai The Residence was designed to reduce primary energy consumption by a full 28%.

New travel packages make use ofenvironmentally friendly EVs
Kinki Nippon Tourist Metropolitan (now Kinki Nippon Tourist) started
selling a new travel package, E Vacation, using electric vehicles (EVs)jointly developed and commercialized with Nissan. During the pandemic, this new style of travel, which allows travelers to avoid crowded
places, has proved popular. The company’s new package, which uses
a car-sharing service developed by Nissan, Nissan e-share mobi, involves stays at traditional Japanese inns and hotels that are equippedwith EV charging stations in Kanagawa and Shizuoka prefectures. By
using EVs, which produce zero CO2, the company has created a travel format that is also kind to the environment at tourist destinations.

Hungry ring-tailed lemurs

Sustainability-focused uniforms
The Westin Miyako Kyoto, run by Kintetsu Miyako Hotels International, Inc., updated its staff’s uniforms in March 2021. The materials
used in the uniforms have been carefully selected: textiles that havebeen chosen for their minimal economic impact at every stage of the
manufacturing processes (raw material selection, dyeing, etc.) andtextiles made from recycled plastic bottles or other sustainability-considerate textiles. The uniforms’ designs are a fusion of sustainability
and traditional culture, with collars and belts featuring braiding andNishijin brocade, both traditional Kyoto crafts.

Condominium building receives prizes at
the Osaka Green Landscape Awards
In January 2021, the Kintetsu Real Estate-run condominium building, Laurel Square Kento The Residence, picked up two awards—theGovernor’s Award and the Biodiversity Award—at the 14th Osaka
Green Landscape Awards, held by the prefectural government. The
awards aim to reward initiatives that act as models
for how greenery can improve urban environments
within the prefecture andfor how greenery canraise the attractiveness of
housing complex grounds.
Laurel Square Kento The Residence

55

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Safety and Peace of Mind Initiatives
1 Initiatives in the Railway Business
Safety management system

Station accessibility: results

Main disaster countermeasures

With the aim of improving safety for our transportation services, wehave established safety management regulations, which are a clear
indication of our basic policy for ensuring safety. 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 carbusinesses.

We are making progress with initiatives such as removing steps
from our major stations between the ticket gates and the platforms,
and making movement smoother by installing elevators and slopes.
We base our efforts on the provisions of the Act on Promotion of SmoothTransportation, etc., of Elderly Persons, Disabled Persons, etc.

Railway embankments

Anemometers

To prevent landslides at eroded or weathered embankments, weare undertaking systematic improvement works.

These devices measure wind direction and speed and their transmitters are located at stations, bridges, elevated sections of track, andother areas subject to powerful gusts. During strong winds, special
driving regulations come into effect, and we are working to ensure
safe operations for our trains.

Making stations easier to use
Facility or equipment

Safety-related investment: results andfuture plans
In fiscal 2020, we invested 21.5 billion yen in railway safety-related
equipment, and we are carrying out a variety of safety measures, including earthquake-proofing, embankment work, and updating trackequipment and railway crossing devices. Similar investment for fiscal
2021 is forecast to total 12.0 billion yen.
(billion yen)
Results

Plan

FY2016FY2017FY2018FY2019FY2020

FY2021

Railwayequipment
investment

19.7

21.1

24.2

24.2

26.5

16.6

Of that,in safety
equipment

14.2

Number of equipped stations

Wheelchair-accessible toilets

165

Of those, multipurpose toilets

149

16.8

18.4

21.5

In the event of a widespread power outage due to a large-scaledisaster, we can utilize the storage battery system located at the Higashi Hanazono substation, which would allow us to run trains caught
without power in the underground section of the Namba Line or in the
Ikoma Tunnel to their nearest station, keeping passengers safe.

*Stations with toilets converted to be wheelchair-accessible:
Iga-Kambe, Koboreguchi, Hiratacho, and Edobashi (FY2020)*Stations with toilets converted to be multipurpose (stoma-friendly):
Iga-Kambe, Koboreguchi, Hiratacho, Edobashi, and Iseda (FY2020)

Working to make getting around smoother for wheelchairusers and other passengers
Facility or equipment

Number of equipped stations

Elevators

130

Escalators81*Of our 280 stations, 251 allow passengers to travel from outside the station to
the platform without using steps.
*Stations with elevators: Isuzugawa, Takaminosato, and Iseda (FY2020)

Ensuring safe travel for visually impaired passengers
16.1

Wide-area power outage measures

12.0
Facility or equipment

Number of equipped stations

Guidance chimes

130

Embankment improvement work

Rainstorm measures
During unusually heavy rain, such as from heavy downpours, weobserve river water levels via monitoring cameras to make sure trains
operate safely when crossing bridges; where water levels rise dramatically, special driving regulations come into effect. In such ways, weare striving to ensure safe train operations.

*We are making progress with the installation of braille stickers guiding
passengers to handrails.

Rainfall measurement systems

Number of railway driving accidents

Safety measures at railway crossings

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

Collision at crossing

Collision with person on tracks

60
50
40

11

22

25

12

30
20

10
36

10
0

2016

26

26

2017

2018

As a safety measure at railway crossings, we have installed equipment that detects obstructions caused by stopped or broken-down
vehicles, and relays this information to train drivers via signal lights ora wireless safety system. The conventional sensor system could detect objects that passed a straight line between sensors, but the new
systems can verify objects on the railway crossing with the lasers
projected by its horizontal laser sensors, so it is able to detect items
within a larger area.

We put in varying driving regulations depending on the level ofrainfall, so as to ensure safety from embankment landslides or similar.
To that end, we have installed rainfall measurement devices all along
our lines and have introduced a system that can gather other rainfall
data and deal with localized heavy rain.

(FY)

We have installed an emergency earthquake warning system,
which transmits earthquake reports from the Japan Meteorological
Agency (JMA) to trains that are in operation. Information sent from the
JMA about the scale and estimated time of the quake—sent seconds
or tens of seconds before the earthquake hits—is received in operation control rooms and voice messages are automatically sent tomoving trains to minimize damage and injuries.

Improving safety for bridges and station buildings

Tsunami countermeasures in Tokai area

21
2020

Emergency earthquake warning system

We are continuously working to earthquake-proof bridges, stations, and infrastructure.

33

2019

Large-scale battery system

Horizontal laser sensors(detect lower-level obstructions)*In the past five years, there have been no accidents involving train-on-train
collisions, fires on trains, or derailments.
Rainfall measurement system

To protect customers and staff on lines in Mie and Aichi prefectures
should a tsunami strike, we have established evacuation maps basedon local authorities’ tsunami path and flooding forecasts, and distributed these to train staff. These maps display the locations of public
evacuation points and emergency evacuation points that we havedesignated, as well as their altitudes. We have also placed emergency evacuation guidance signs on our lines to help passengers evacuate smoothly in the event of a tsunami.

Horizontal laser sensors(detect upper-level obstructions)
Obstruction detection equipment (new style)57

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BCP (Business Continuity Plan)

Ticket gate monitoring system

To improve our ability to respond to unusual circumstances, weformulate BCP. BCP set out in advance a task priority order, methods,
and other measures to return the business to normal operations andaim to effect this as quickly as possible. We have established BCP to
first ensure customer safety, but also to advance the recovery of therailway business should something occur.

In June 2020, we introduced a ticket gate monitoring system at
Yamato-Saidaiji that utilizes AI and cameras to identify wheelchairusers or visually impaired travelers, then sends an alert to station staff.
This makes it easier for staff to identify when customers who might
require help come to the station, while busy with other work. Our aim
for the system is to help provide customers with a safer, more reassuring experience.

“Kinmirai Station” initiative makes use ofadvanced technologies

Ticket gate
Station office

To respond to diversifying customer needs and forecasts of labor
shortages, we are currently examining what we call the “Kinmirai Station” concept, a new way of managing stations using the latest technologies. At Yamato-Saidaiji Station, which is undergoing renovations,
we have introduced large-screen multi-displays, and are running verification tests for guide robots that use AI and ticket gate monitoring
systems for wheelchair users.

Offershelp/gives assistance

Value
Creation

Agreement to build temporary emergency
housing in the event of a disaster

Image recognition AI server(White cane/wheelchair detection mode)

CameraKintetsu Group
Overview

Station staff(office duties)

As a core Osaka-based member company of the Wooden Home
Builders Association of Japan (WHBAJ), in February 2019, Kintetsu
Real Estate signed an agreement with Osaka Prefecture to construct
and supply temporary emergency housing should a large-scale disaster occur.
If such a disaster should happen, the area affected is predicted tosuffer from housing shortages in the immediate aftermath. Due to theneed to secure accommodation for victims quickly, the WHBAJ has
been concluding agreements with individual prefectures to provide
wooden temporary shelters. As well as building these in an emergency, Kintetsu Real Estate has created temporary housing plans, specifications, and distribution plans, and through its participation in disaster preparedness drills and creation of instruction manuals, it iscontributing to regional communities.

PC for alerts

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Agreement with Nagoya City and otherlocal authorities to provide accommodation
to support workers in a large-scale disaster
In November 2020, Kinki Nippon Tourist Chubu (now Kinki Nippon
Tourist) signed an agreement with Nagoya City to open up accommodation facilities to support workers from Nagoya or other local authorities in the event of a major emergency. In the case of a large-scale
earthquake or storm and rain damage, or similar, the agreement promotes cooperation to enhance the city’s ability to respond to a disaster by offering or receiving support. The aim is to swiftly and smoothly
secure accommodation and methods of getting around for the support workers local authorities dispatch to one another in such cases.
KNT Chubu, in the event of an emergency, agreed to quickly begin
making hotel reservations and provide rooms either at accommodation facilities with which it has special contracts, or from its own inventory of guest rooms, and to offer support workers means of travel andnecessary information.

Ticket gate monitoring system

Quality and safety management initiatives

Examples of other agreements
Company

Kintetsu Department Store puts together product quality labeling
manuals and food hygiene management manuals, and by periodically
distributing quality management reports to employees, it is working to
improve quality and hygiene management. In particular, KURASHIKAGAKU LABORATORY, part of the Kintetsu Group, conducts regular quality checks, and in addition to strictly managing food safety andsecurity, 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.

Guide robots use AI and can offer information about trains,
station equipment, nearby facilities, and other topics, in four
languages.

2 Other Initiatives
Condominium buildings shared spaces
gain teleworking lounges with privateboothsStart of sales for teleworking-friendly
homes in Kintetsu’s Gakken-NaraTomigaoka residential area

Kintetsu Real Estate, in a first for the Tokai region, has introduced
24-hour teleworking lounges with private booths in the shared spaceof its Laurel Tower Nagoya Sakae condominium building, which wascompleted in January 2021. During the COVID-19 pandemic, as partof working style reform, many companies are recommending or implementing ways of working that are focused on working from home.
Among other things, this working style helps workers to avoid the riskof catching COVID-19, and for those who can’t make a space to concentrate on work in their own condominiums, they can make effective
use of this work space and time without leaving the building in which
they live. Kintetsu Real Estate aims to establish new lifestyles and will
be rolling this out to its other condominium buildings.

Kintetsu Real Estate has begun selling homes that are geared toward teleworking, one new form of living that has emerged during the
pandemic, at residential area in Gakken-Nara-Tomigaoka. Kokochi
spaces are comfortable private areas that are designed to complement working from home but can also be used for doing householdchores or hobbies, and include private terrace areas and wooden terraces that are perfect for taking tea, house parties, barbecues and thelike. Going forward, we will continue to make proposals for ways to livein this new age that meet the needs of customers.

Partner

Agreement

Kinki Nippon
Tourist Hokkaido

TEC-FORCE,
Hokkaido
Regional
Development
Bureau, MLIT

Agreement concerning cooperation
to ensure accommodation forsupport workers sent to disasterareas swiftly and smoothly

Kinki Nippon
Tourist Kanto

Mito City, Ibaraki
Prefecture

Agreement concerning ensuringaccommodation in a disaster

Kinki Nippon
Tourist Chubu

Central Nippon
Expressway
Company
LimitedAgreement concerning cooperation
to ensure accommodation in adisaster*Now all part of Kinki Nippon Tourist

Introduction of new buses fitted with an
EDSS
Mie Kotsu, in order to raise safety on its buses, has been steadily
introducing buses fitted with an Emergency Driving Stop System(EDSS) since September 2019. Meihan Kintetsu Bus Co., Ltd. has
also been introducing buses equipped with the system since March
2019, and in November 2019, it brought in sightseeing buses withEDSS and a lift. We plan to continue systematically introducing buses
fitted with EDSS.
*EDSS is an emergency system that can be used if the driver is suddenly
unable to continue driving. The system can be triggered by the driver, or apassenger, using the onboard emergency brake switch, at which point thesystem automatically takes control and gradually brings the bus to a stop.

Kokochi spaces

59

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3 COVID-19 Pandemic Countermeasures
The companies that make up the Kintetsu Group place the safety and peace of mind of their customers
and employees as their highest priority. In their respective businesses, they are working on measures
to prevent the spread of this infectious disease, such as ensuring adequate ventilation and social
distancing, and placing sanitizing fluid. Equally, group companies are implementing initiatives to
respond to this new way of living.
Osaka Marriott Miyako Hotel lit-up

Supporting the fight against COVID-19
Anti-viral, anti-bacterial coatings

Miyako Green Guarantee introduced

Kintetsu Railway, etc.

Kintetsu Miyako Hotels International

From June 2020

October 2020

We are adding anti-viral, anti-bacterial coatings that continuously
reduce and suppress viruses and bacteria to objects that customers
come into direct contact

Kintetsu Miyako Hotels International has introduced the Miyako
Green Guarantee, which was established as a new standard for hygiene and disinfection, to all of its hotels.
Its spirit of hospitality remains undimmed, and the company is responding to new lifestyles bymaintaining appropriate distances between people andimplementing thorough hygiene
management, doing all it can toprotect the health and safetyof customers and employees.

with—such as straps, handrails, or seats—as well as
air-conditioner filters, toilets,
etc.

Kintetsu Group
Overview

Value
CreationContent to be enjoyed at home streamed
Osaka Aquarium Kaiyukan, Hanazono Kintetsu Liners

March 2020
During the time it was temporarily closed, Osaka
Aquarium Kaiyukan has been releasing footage of its
animals on its official YouTube channel for people towatch at home. The aquarium broadcast around 60
videos in a project that aimed to make people’s lives alittle bit brighter by showing them how the animals
were getting on.

April 2020
To raise rugby fans’ spirits while they are stuck at
home, the Hanazono Kintetsu Liners have beenstreaming their training sessions “Liners Boot Camp”
every Saturday on their official Instagram account.

61

Kintetsu Group Integrated Report 2021

Socially distanced online
communications helpdesk
launched
Kintetsu Real Estate

Kintetsu World Express

Kintetsu GroupMay 2021

June 2021

Full-scale exports of the Takeda/Moderna vaccine from Europe toJapan began.
As a forwarding company, Kintetsu World Express undertook alltasks relating to the international transport from there to here.
The company collaborated closely with affiliated companies insideand outside Japan, and developed a system that would allow the
speed and safety needed for the strict temperature management andrisk management required to transport this vaccine. By providing
high-quality international transport services, the company is contributing to bringing the end of
the pandemic a little closer.

We started vaccinating Kintetsu Group employees at theirworkplaces, which covers up to approximately 17,000 people. We
began in the city of Nara on June 21, and in Yokkaichi in Mie Prefecture on June 28, and by August we had finished vaccinating 6,000
railway or station staff who wanted to be vaccinated. From August
onward, we expanded this initiative to volunteers throughout all groupcompanies.

2021

Kintetsu Department Store introduced a new pick-and-go service
that allows customers to buy foods of a quality unique to our department stores and have them delivered to their homes the same day.
This service helps support those who are staying at home andavoiding the Three Cs (closed spaces, crowded places, andclose-contact settings) and this is the time it has been introduced in a
department store in Kansai. Part one of this initiative involved
introducing the system at food counters in the Abeno Harukas store,
and we plan to gradually expand the number of counters and productcategories.

May 2020
Kintetsu Real Estate launched a newcommunications helpdesk to let customers
view new properties online from their homes
via their phone or internet lines. Customers
do not need to download a special app, but
can listen to explanations as they look at
documents on their computer or smartphone.
The aim of the helpdesk is not only to help
reduce the number of face-to-face meetingsneeded, it can also offer detailed answers to
any questions or doubts a customer may
have before applying for a home or signing acontract.

Corporate
Information

Vaccinations at workplaces began

December 2020

Initiatives catering to new lifestyles

Initiatives ofMateriality

Transport of Takeda/
Moderna COVID-19 vaccines beganHome delivery service offeredby department store Kintetsu Department Store

2020

Strategies ofmajor companies

February 2021
At Kintetsu Department Store Main Store Abeno Harukas, welaunched a service that allows customers to place orders on theirphones. This new service is not limited to items on the online shop,
but any item available to buy in-store; customers can simply use theirphones to order and pay for goods from their own homes. Feedback
has been positive, with customers saying things like, “The clothes I’dseen on social media and in magazines have arrived, and I’m sopleased with them!” and “I’m not used to shopping online but it was soeasy by phone!” A large number of customers who wouldn’t normallyshop online have been taking advantage.

Bus tours with accommodation
and PCR testing included implemented
Club Tourism International

April 2021
Club Tourism International ran a new style of travel developed forthis pandemic world: a bus tour that included monitoring andmeasures to prevent the spread of the disease. For the tour, we trialed
four measures, including PCR testing prior to participation and healthmanagement reports, for Club Tourism International Inc.’s grouptravel, and the results of the trial will be used to strengthen safety andpeace of mind for future tours.
Club Tourism International has also rolled out Club Tourism New
Style, tours set in line with our independent guidelines, which are
based on four key pandemic countermeasures: 1) avoiding the ThreeCs; 2) minimizing contact; 3) anti-droplet measures; and 4) healthmanagement. Since October, we have also been offering packages
such as a plan that is only available to those that have been vaccinated twice.

Kintetsu Group Integrated Report 2021

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Human Resources Initiatives
1 Human Rights

2 Creating a Comfortable Workplace

Basic approach

Creating workplaces where diverse personnel work comfortably

The Kintetsu Group is supported by the efforts of each and every employee. In order to continuously improve corporate value as ourmanagement environment changes to be remarkable, it is important to create an environment in which diverse employees feel motivated towork and continue to play an active role. The Kintetsu Group is committed to creating a workplace where each and every employee, regardlessof lifestyle differences, can have peace of mind and fully demonstrate their abilities through its human resource systems and development, andcooperation with related organizations.

The Kintetsu Group’s management philosophy is to contribute to society through collaboration with diverse people, and we are working tocreate an environment in which each employee can maximize his or her abilities. The Kintetsu Group is engaged in a wide range of businesses,
and the activities of its employees vary widely. Each of the operating companies is promoting the activities of its employees in accordance with
their respective challenges.

Basic policy toward human rights

Harassment prevention measures

1. We recognize that it is our corporate responsibility to provide
positive workplaces, and a society, where the dignity of
the individual is enshrined, and that are fair and free fromdiscrimination. Therefore, we will promote organized,
systematic training and practice throughout the entire groupwith the aim of completely eradicating human rights andsocial integration issues.
2. We will ensure that all employees are aware of and truly
understand human rights and discrimination and put
our efforts into initiatives that focus on not committing or
allowing discrimination, which show every employee thatworking on resolving human rights and social integration
issues is something they should be doing independently.

One clause of the Legal and Ethical Guidelines that Kintetsu Group
Holdings and Kintetsu Railway follow, states that, “We will prohibit
harassment.” As well as implementing educational activities throughlegal and ethical training, we explain the different forms harassment cantake through materials that we distribute to employees. To deal with
queries about harassment, we established legal and ethical helpdesks
and, in June 2021, job-hunting harassment helpdesks inside andoutside the company. In terms of our harassment training, we started
implementing e-learning on sexual harassment in fiscal 2020, andthis successfully raise employee knowledge about the subject. Eachcompany has its own Harassment Prevention Subcommittee to discussdeveloping systems to monitor harassment cases that have occurredand implement measures to prevent them, as well as awarenessraising, training, and other efforts. In these ways, we are strengthening
the harassment prevention framework throughout the entire KintetsuGroup.

Policies and initiatives to ensure a good work-life balance
Company

Kintetsu Group Holdings
Kintetsu Railway

・Promotion of no-overtime days
・Allowing of employees to take annual leave in half-days, expanding of flextime system and enacting of policies
that support childcare leave, to support employees in their home and work lives
・Managing of work computer logs to ensure appropriate use during work hours
・Using of Robot Process Automation (RPA) and other IT to automate routine work・Utilizing of remote conference systems to reduce time spent traveling between different workplaces

Kintetsu Real Estate・Putting in place of an attendance/absence system, improving of work efficiency, managing of working hours, andimplementing of a no-overtime day every Tuesday
・Promotion of half-day leave use for annual leave, implementing of systems that promote half-day leave use eachmonth and the use of annual leave in units of one hour, to encourage uptake of leave・Implementing of leave accumulation system without uptake requirements

Kintetsu Miyako Hotels International

・For those requiring shorter working hours in order to care for others, the maximum time they can shorten their
fixed shifts by has been increased to four hours a day (January 2021)

Kintetsu Department Store・Establishing of a Dedicated Working Hours Management Committee comprising representatives of the labor
union and managers responsible for human resources affairs, as we believe that ensuring working hours areappropriate is a key part of a positive work-life balance. Efforts to improve productivity and prohibit overworking
through a variety of initiatives, including amending the working hours management manual and creating
educational posters
・Implementing of a weekly no-overtime day at each workplace, introducing “anniversary leave”* (two days ayear), a system for taking several consecutive days from annual leave to encourage systematic leave usage
and, in October each year, a special month to promote leave uptake. Introduction, in October 2020, of asystem where employees can take their annual leave in half-days, and general efforts to promote systems thatencourage employees to better balance their work and home lives*A new system introduced in March 2017 to replace the conventional “birthday leave” which was one day a year.
The new system gives employees two days extra a year that they can take regardless of the reason, so as topromote greater leave uptake.
・Shortening of fixed working hours by 10 minutes (42 hours over the course of a whole year)
・To develop a working environment that allows employees to balance work and caring for others or coping withinjury or illness and to aid the career development of employees, introduction of a short working week systemwith a fixed three or four days per week (March 2021)
・Addition of care-giving and infertility treatment to the reasons employees can take special (savable) paid leave,and change to make it possible to take special leave in one-day units (March 2021)

Kintetsu Retailing・Launching of the ES Enhancement Project in August 2019, taking on board the results of an employee
awareness survey conducted in November 2018. First, distribution of a digest of the survey results to all
employees and feedback gained. Holding of ES-focused meetings between December 2019 and March 2020.
Implementing of 30 workplace interviews about site operations. Efforts to make improvements and plans forchanges to the human resources system in April 2022.
・To respond to flexible working styles, introduction in April 2021 of flextime and teleworking systems for head
office workers

Kinsho Store・Systematic allowance for annual leave (five days a year)
・Leave can be taken in half-day units
・Minimum interval between shift extended from nine hours to ten

KNT-CT Holdings

The goals behind our creation of teleworking guidelines are as follows:・Preventing the spread of COVID-19 (and for business continuity during emergencies)
・Improving work efficiency and productivity
・Reducing mental and physical burden from commuting
・Reducing office costs

Human rights enlightenment initiatives
The Human Rights & Social Integration Promotion Committee, which is chaired by the corporate officer responsible for human resources,
meets once a year and formulates our basic policy toward human rights and social integration, and promotes efforts to raise awareness of social
integration, including of social groups that have been historically discriminated against, and other human rights-related issues. The labor union is
also part of this committee, so labor and management are working together to systematically tackle these issues.
Human rights training is not limited to when employees join their companies or are promoted, and corporate officers and managers also
receive the training. Each workplace also has a human rights and social integration trainer who has received extra training. We strive to promote
training for every single employee and ensure that preventive measures are in place as standard, but also to respond appropriately if a breachshould occur. Furthermore, to prepare the group to expand overseas, we are demanding thorough respect for human rights and are focusing onstrengthening aware-raising activities related to preventing child and forced labor, including at our business partners.

Human Rights & Social Integration Promotion Committee
・Chair：Kintetsu Group Holdings corporate officer responsible for human resources
・Vice-chairs：Kintetsu Railway corporate officer responsible for human resources
Kintetsu Railway Labor Union Committee chair・Committee：Group company general manager responsible for human resources
members Kintetsu Railway Labor Union Committee vice-chair and others
・Observers：Group company general manager responsible for human resources

Formulation of our basic policy

Gives brief and fullreports to the committee

Workplacedaily guidance

Human Rights & Social Integration Secretariat
・Promotion coordinators：Group company project managers responsible for human resources

Human rights andsocial integration trainers

Human rights andsocial integration trainers

Human rights andsocial integration trainers

Policy/initiatives

Human rights education framework

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Kintetsu Group Integrated Report 2021

Kintetsu Group Integrated Report 2021

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Number of employees, female employees, managers,and female managers at major group companies

Overtime, work-accidents, employees
turnover, etc. at major group companies

Total of major group companies

Overtime at major group companies

FY2016FY2017FY2018FY2019FY2020

Employees (total)

27,85827,27826,731

27,707

26,150Full-time

14,39014,525

15,697

15,787

15,485Contract

862

850

1,048

1,047

875

Part-time

9,466

10,016

9,986

10,873

9,790

Female (total)

11,742

11,763

11,48812,447

11,500Female (%)

42.1%

43.1%

43.0%

44.9%

44.0%

Managers

1,764

1,621

1,550

1,547

1,549

Female managers(total)

149

123

121

129

136

Female managers
(%)

8.4%

7.6%

7.8%

8.3%

8.8%

*Due to a reorganization of the KNT-CT Group, staff breakdowns for FY2016
and FY2017 are only those for which data could be calculated.

Uptake of leave at major group companies
Total of major group companies

FY2019FY2020

Kintetsu Group
Holdings

-

12.0

14.2

15.0

12.5

Kintetsu Railway

21.9

21.5

22.3

21.7

16.7

Kintetsu Real Estate

12.9

11.7

11.3

11.0

7.2

Kintetsu Department
Store

14.5

14.1

15.1

14.8

10.9

Kintetsu Retailing

3.8

4.8

5.2

5.2

7.6

Kinsho Store

12.0

14.0

14.4

15.0

15.0

Kintetsu Miyako Hotels
International

20.6

17.5

16.7

14.8

6.3

-

-

-

-

2.6

FY2016FY2017FY2018FY2019FY2020

472

424

543

605

473

Kintetsu Group
Holdings

2.3%

0.8%

0.8%

1.5%

1.8%

Kintetsu Railway

1.1%

1.0%

1.5%

2.0%

1.7%

Kintetsu Real Estate

3.5%

2.1%

3.0%

3.1%

2.3%

11.7%

11.2%

12.1%

13.4%

9.3%

5.9%

4.2%

6.2%

5.5%

FY2018FY2019FY2020Childcare leave

256

253

283

380

362

Kintetsu Miyako Hotels
International

Childcare leave
user (Male)

0

1

2

4

3

Kintetsu Department
Store

Childcare leave
user (Female)

127

126

153

144

Initiatives ofMateriality

ResultTarget

FY2016FY2017FY2018FY2019FY2020

Kintetsu Railway

Railway transport divisions: percentage of female hires of 30% or higher

13.0%

26.7%

24.6%

23.5%

21.0%

Kintetsu Real Estate

Percentage of female newly graduated hires of 35% or higher

8.3%

24.0%

21.9%

14.3%

14.3%

Kintetsu Miyako Hotels
International

Percentage of female managers of 10% or higher

6.5%

8.6%

8.7%

9.5%

11.3%

Kintetsu Department Store

Percentage of female managers of 8% or higher

5.0%

5.9%

7.8%

8.3%

8.4%

Kintetsu Retailing

Percentage of female managers of 10% or higher

9.5%

10.1%

6.7%

8.7%

7.2%

Kinsho Store

Percentage of female newly graduated hires of 40% or higher

61.4%

34.7%

57.1%

46.7%

41.7%

Action plans (numerical targets) based on the Act on the Promotion of Female Participation
and Career Advancement in the Workplace (FY2021–2025)
Company

Targets
Percentage of female employees to reach 30% or higher of all roles, and paid leave uptake to reach 70% or higher

Kintetsu Railway

Railway transport divisions: percentage of female hires of 30% or higher
Railway engineering divisions: percentage of female hires of 5% or higher
Childcare leave (including maternity leave) uptake for female employees of 75% or higher, and average maternity
leave length of one year or longer
Childcare leave (including paternity leave) uptake for male employees of 7% or higher, and average paternity leave
length of three months or longer

4.5%

Kintetsu Real Estate

Percentage of female newly graduated hires of 35% or higher

Kintetsu Department Store

Percentage of female managers of 10% or higher by FY2023

Kintetsu Retailing

Percentage of female managers (supervisor level or above) of 10% or higher
Percentage of employees leaving of 4% or lower for both male and female employees

6.0%

3.7%

5.3%

4.4%

4.5%

Kinsho Store

3.7%

4.1%

4.0%

6.2%

3.3%

-

-

-

-

17.0%

Paternity leave
user

56

166

174

165

172

*Full-time employees only

Kinsho Store

Percentage of female newly graduated hires of 40% or higher (FY2019–2021)

Maternity leave
user

48

57

77

62

58

Total of major group companies

Kintetsu Miyako Hotels
International

Shortened-hourworking

Percentage of female managers (project manager level or above) of 15% or higher
Overall average monthly overtime of 15 hours or lessEnhanced procedures and systems to enable flexible ways of working

367

354

250

484

493

Number of workers
involved in work-accidents
Number of work-related
deaths (employees)
Number of breaches oflabor standards

Paid leave uptake rate

FY2016FY2017FY2018FY2019FY2020

198

196

207

217

163

Kinki Nippon Tourist Corporate
Business

An average service life in years for female employees that is at least half that of male employees(fifth period; between April 1, 2019 and March 31, 2022)

1

0

0

0

0

Club Tourism International

Percentage of female managers of 20% or higher (second period; between April 1, 2019 and March 31, 2022)

3

3

0

2

2

FY2016FY2017FY2018FY2019FY2020

Kintetsu Group
Holdings

58.5%

58.1%

55.2%

78.0%

65.3%

Employment rate of persons with disabilities

Kintetsu Railway

87.8%

90.6%

89.3%

92.6%

88.4%

Employment rate of persons with disabilities

Kintetsu Real
EstateEfforts to make better working environments for female employees
Company

29.1%

Kintetsu
Department Store

42.1%

Kintetsu Retailing

21.2%

30.0%
48.7%
21.9%

35.2%
56.4%
21.0%

47.3%
53.3%
32.5%

48.7%
38.5%
31.2%

Kinsho Store

70.8%

78.0%

76.1%

84.5%

73.0%

Kintetsu
Miyako Hotels
International

32.5%

33.1%

30.7%

53.7%

31.7%

Kinki Nippon
Tourist Corporate
Business

52.0%

Kinki Nippon
Tourist Metropolitan

43.5%Club Tourism
International

45.5%

54.9%

48.5%
63.4%

Kintetsu Group Integrated Report 2021

58.9%

45.5%
57.1%

73.4%

53.1%
65.2%

39.1%

53.1%
33.4%

Corporate
Information

Kintetsu Group Holdings

Kintetsu Retailing
KNT-CT Holdings

Strategies ofmajor companies*Figures for Kintetsu Miyako Hotels International include contract employees.

Number and rate of employees turnover at major group companies

FY2017*Figures for the number of childcare leave users and paternity/maternity leave
users are the totals for only companies where the information is available

65

FY2018FY2016127

Company

FY2017

Employees turnover

Value
Creation

Action plans (numerical targets) based on the Act on the Promotion of Female Participation
and Career Advancement in the Workplace (FY2016–2020)

FY2016

KNT-CT Holdings

Kintetsu Group
Overview

FY2016FY2017FY2018FY2019FY2020

Kintetsu Railway

2.17%

2.10%

2.40%

2.47%

2.69%

Kintetsu Real Estate

1.71%

1.92%

1.91%

1.76%

1.71%

Kintetsu Miyako Hotels
International

1.84%

1.73%

2.05%

2.08%

2.08%

Kintetsu Department
Store

2.07%

2.18%

2.27%

2.33%

2.35%

Kintetsu Retailing

1.40%

1.69%

1.91%

2.13%

2.38%

Kinsho Store

2.53%

2.34%

2.65%

2.98%

2.64%

Kinki Nippon Tourist
Corporate Business

1.95%

2.22%

2.29%

2.52%

3.18%

Kinki Nippon Tourist
Metropolitan

2.16%

3.50%

2.97%

2.33%

2.42%

Club Tourism
International

2.64%

2.62%

2.14%

2.18%

2.04%

*1 Due to a company reorganization, results for FY2016–2017 are those of
Kinki Nippon Tourist*2 Due to a company reorganization, results for FY2016–2017 are those of
Kinki Nippon Tourist Individual Tour*1

Initiatives

Kintetsu Group Holdings
Kintetsu Railway

・Implementation of e-learning classes to prevent harassment (sexual harassment, harassment of pregnant women,etc.) for head office departments (August 2020)・Inclusion of information of women’s rights in materials designed to raise awareness of human rights that are
distributed to employees (April 2021)
・Proactive recruitment of female employees and continuing support
・Implementation of training, etc., to improve awareness of supervisors at railway worksites

Kintetsu Real Estate・Target of percentage of female newly graduated hires of 35% or higher, and increase in contact points between
existing female employees and female candidates

Kintetsu Miyako Hotels
International

・Normalization of teleworking, and formulation of working-from-home regulations

Kintetsu Department Store・Enhancement of systems related to support working alongside childcare (for more details, please see the“Systems to support working alongside childcare” section on the following page)・Expansion of choices for working hours (seven hours)
・Promotion of personnel training programs (increased training open to all and selected training, and expansion of
educational curricula for self-development)
・Implementation of female participation promotion seminars (awareness-raising seminars for managers to foster aninternal environment that supports female participation (particularly in management roles))Kintetsu Retailing・Addition to the daycare facility system opened by Kintetsu Group Holdings

Kinsho Store・Addition to the daycare facility system opened by Kintetsu Group Holdings
・Enhancement of systems related to shortened working hours for those working alongside childcare*2

KNT-CT Holdings

As part of diversity promotion efforts, introduction of a system whereby employees who change their names (throughmarriage, adoption, etc.) can continue to use their original names if they wish to (for employee registers, email
addresses, etc.)

Kintetsu Group Integrated Report 2021

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Systems to support working alongside childcare

Kintetsu Group Holdings
Kintetsu Railway

Kintetsu Real Estate・Shortened working hour system for those caring for children up to school-going age
・Creation of a guide to childbirth and childcare procedures and development of a system to raise awareness・Staggered working hours (one hour) to take/collect children to and from daycare/nursery/kindergarten/school up to
the fourth grade of elementary school・Announcement of corporate daycare facilities established by Kintetsu Group Holdings

Kintetsu Miyako Hotels
International

・Establishing of pre/post-childbirth leave that is longer than that required by law (two years)
・Elimination of an upper limit on the number of times employees can utilize shortened working hour systems
・Establishing of a helpdesk for the childcare-related systems
・Implementation of seminars on combining childcare with work (twice a year) for those on shortened working hours
・Strengthening of corporate information sharing with those on childcare leave (holding gatherings each year)
・Paid salary where paternity leave is five days or less to support childcare leave for male employees
・Extension of shortened working hours program application window for those caring for children up to the sixth
grade of elementary school・Expansion of teleworking system for those on shortened working hours for childcare or caregiving reasons from up
to four times a month to up to twice a week (from March 21, 2021)
・Extension of shortened working hours program to those caring for children up until they attend elementary school・Addition to daycare facility system opened by Kintetsu Group Holdings for Kintetsu Group employees

KNT-CT Holdings

・Enabling of leave for unwell children to be taken in single-hour units, in line with revisions to the Act on Childcare
Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members

Kinsho Store・Paternity leave of up to five days (from September 2020)・Extension of shortened working hours program to those caring for children up until they attend junior high school

Average length of service in years at major group companies
Kintetsu Group Holdings
FY2018FY2019FY2020FY2016FY2018FY2019

-

20.0

19.5

19.4

Male

6.7

7.3

7.9

8.8

9.3

Female

-

-

19.0

12.4

13.2

Female

8.8

8.8

9.2

9.4

9.3

FY2019FY2020FY2016FY2017FY2018FY2019FY2020

23.4

23.6

24.1

24.4

24.2

Male

23.4

22.1

24.0

18.7

18.9

Female

9.3

8.7

8.6

8.1

8.0

Female

9.4

9.6

12.1

13.2

13.3

17.3

16.4

16.4

16.8
17.3

FY202016.5
17.6

FY2017FY2018FY2019

15.0

13.7

14.4

14.1

12.2

Female

8.1

6.8

7.6

7.3

6.9

Kintetsu Department Store

18.8

9.0

8.8

21.1
11.1

FY2019FY2018FY2019FY2020

Male

21.9

22.6

23.2

23.6

24.1

Female

16.3

16.8

17.7

18.4

18.8

21.8
11.5

21.9
10.8

FY2017FY2018FY2019FY2020

Male

22.1

19.0

24.0

24.1

24.4

Female

13.1

11.4

13.0

12.6

12.4

*Due to a company reorganization, results for FY2014–2017 are those of
Kinki Nippon Tourist Individual Travel

Club Tourism International
FY2016

Kintetsu Group Integrated Report 2021

Newly graduated

424

701

652

746

503

Mid-career/limited-term contracts, etc.

412

639

325

397

205

3,057

2,349

Part-time

3,041

3,367

3,297

3,344

Of those, female

2,358

2,843

2,650

2,818

1,888

Female employee ratio

60.8%

60.4%

62.0%

62.8%

61.8%

Newly graduated hires who left

133

129

123

155

107

Proportion of permanent staff who were mid-career hires

5.3%

4.9%

6.2%

6.9%

5.2%

Permanent staff

3,241

3,223

4,502

4,670

4,627

Mid-career hires

172

159

279

322

241

To improve the capabilities of every single employee in the Kintetsu Group, individual group companies systematically carry out employee
training. At Kintetsu Group Holdings, with the cultivating of the next generation of executives in mind, we implement training that is specific todifferent levels, from, new employees through to the department general manager class, with a focus on overall capabilities, resourcefulness, andpractical ability. In addition to remote learning, the mid-management/leader class, before promotion to management positions, are provided with
opportunities to take seminars from external bodies on an elective basis, aligned with individual topics.

Training system framework (FY2020 results) ★Kintetsu Group training

FY2017FY2018FY2019Overall capabilities

Empowerment of human resource

FY2020

Male

12.0

12.2

12.0

12.2

12.9

Female

9.0

9.4

9.1

10.2

10.5

denotes FY2020 training canceled due to the pandemic
Practical ability

New general manager training
Mid manager training★
New manager training

FY2020Kinki Nippon Tourist Metropolitan
FY2016FY2020

4,487

Young
employees

FY2017

Female21.0

FY2018FY2020Male

FY2016Male

FY2017*Due to a company reorganization, results for FY2014–2017 are those of
Kinki Nippon Tourist

Kintetsu Miyako Hotels International
FY2016FY2016FY20194,274Management implementation training
Dispatch to external public seminars
Mid-management/leader training★

Cross-industry exchange
training

Marketing & management strategies
Labor management training★
Accounting & finance, etc.

Elective training★
Marketing and accounts
Problem resolution and leadership
Motivation/business practicalability training for multiple levels

New employee training (after assignment, Japan Self-Defense Forceexperience , operational area history and culture seminars)

Educational support

Remote learning support

18.0

17.0

FY2019FY20184,707

Mid-level and leader class

FemaleKinki Nippon Tourist Corporate Business
FY2018FY20173,877

Language learning support for
those dispatched abroad

Male

FY2017FY2016

General Manager
manager

FY2018

Total for major group companies

Level

Kinsho StoreFY2017

Number of hires, female employee ratio, newly graduated hires who left, etc.

FY2020-

Kintetsu Real Estate67

FY2017

Male

Kintetsu Railway

During recruitment, Kintetsu Group Holdings and Kintetsu Railway appoint individuals whose role it is to promote fair recruitment selection
and raise awareness of human rights, and conduct hiring that is fair and free from discrimination. Human rights are respected and there is nodiscrimination based on background, sex, age, sexual orientation, disability, nationality, race, religion, or any other factor.

Annual training results and training time for FY2020
Kintetsu Group Holdings: 21 seminars, approx. 870 employees; Kintetsu Railway: 26 seminars, approx. 5,500 employees
Kintetsu Group Holdings: approx. 28,200 hours; Kintetsu Railway: 16,900 hours (excl. training carried out by worksite operation divisions)

Kintetsu Retailing

FY2017

15.4

Corporate
Information

Human resources development and education

Kintetsu Retailing

Male

Initiatives ofMateriality

Recruitment policy

Number of hires

・System whereby employees could take time off to look after unwell children or others was changed from half-day(four-hour) units to single-hour units (from January 1, 2021)

Kintetsu Department StoreFY2016Strategies ofmajor companies

Initiatives
・Implementation of measures to smooth the return to work after childcare leave
・Extension of shortened working hours program to those caring for children up to the fifth grade of elementary
school・Establishing of a system for pre- and post-childbirth leave and childcare leave that goes beyond legal requirements
・Establishing of a system to rehire employees who left due to reasons that made it hard to continue to work due tocircumstances such as marriage, pregnancy, childbirth, childcare, caregiving, spouse’s job-related relocation, orother unavoidable reason

FY2016

Value
Creation

3 Recruitment and Training

Company

FY2016

Kintetsu Group
Overview

Other

Group
management
training★

TOEIC
Businessaccounting
tests

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Initiatives to develop and enhance job role capabilities

Kintetsu Group
Overview

Value
Creation

FY2020
Kintetsu Railway

New employee training, level-specific training

Kintetsu Real Estate

New employee training, level-specific (1, 2, and 3) training, DX-related seminars, harassment prevention training, labor
management training, human rights training

Kintetsu Miyako Hotels
International

Level-specific training (new employees, new foreign employees, fourth-year employees, newly appointed leaders, newly
appointed project managers), management practice, Kintetsu Group joint training (new employees, business seminars,
management simulation, labor management)

Kintetsu Department Store

Level-specific training (to gain knowledge and skills needed for qualifications, etc.), role training (for management andsupervisory roles), direct customer sales technique training, outside sales technique training

Kintetsu Retailing

Since FY2020, store manager training (labor- and human resources-related procedures, accounting processes, etc.) andlabor management training for management roles and above.
Implementation of level-specific training from fiscal 2021. Also, K-SUPPORT seminars introduced where necessary.

Kinsho StoreNew employee training, level-specific training, division rotation training, basic sales training, complaint handling training,
CS training, mental health training, etc.

KNT-CT Holdings

Training followed the FY2020 human resources training program. The original plan was for all training to be collective
training but, with the exception of the winter intake of new employees and second-year employees, training was
conducted online

Club Tourism International

New employee orientation training, CHIE training (for first-, second-, and fourth-year employees), on-the-job training,
promotion candidate training, management role training, accounting training, labor training, travel itinerary management
training, tour guide practical training, career development training, flow workshop training, leadership training, etc.

Self-development support
FY2020
Kintetsu Railway

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

Kintetsu Real Estate

Qualification acquisition grant: assists employees and others in their independent studies, and to help them improve theirabilities we supply a set grant for each qualification for those who acquire them
Qualification acquisition training system: assistance with tuition fees or work exemptions for those taking exams tobecome 1st-class architects, real estate appraiser, or licensed electrical engineer

Kintetsu Miyako Hotels
International

Qualification exam fee support system (exam fees for designated qualifications are paid), remote learning tuition fee
support system (half the tuition fees for completing designated courses are paid)

Kintetsu Department Store

Support for tuition fees, including for remote training, e-learning, external seminars, Globis Management School, English
studies, etc.

Kintetsu Retailing

Employees who complete remote learning courses can receive a grant (50–90%). Employees who acquire qualifications(designated by the company) can have their exam fees paid

Kinsho Store

Employees who complete remote learning courses (designated by the company) can receive a grant (50–90%)

KNT-CT Holdings

For remote learning courses held twice a year (July and December), acquisition of a national qualification (as a Certified
General Travel Services Manager), or other specialism (area specialist, cruise consultant, Test of World Heritage
Studies), a grant is paid for those who are successful (excl. some group companies)

Club Tourism International

Complete e-learning library, external dispatch training with open applications, job challenge system (capability development
through other concurrent roles within the company), skilling-up leave system, etc.

FY202069

Our health and productivity management
declaration

Main policies to improve healthmaintenance

The Kintetsu Group aims to improve the health of its employees
and so actively works on health and productivity management. In
September 2021, to further promote it, we formulated the KintetsuGroup Health & Productivity Management Declaration to embody
our policy on the subject.

At Kintetsu Group Holdings and Kintetsu Railway the following
measures are being put into practice to enhance employee healthmanagement.

Kintetsu Group Health & Productivity Management Declaration(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.

Health and productivity management
framework

Career development consulting system

Kintetsu Railway

For new employees

Kintetsu Real Estate

For new employees

Kintetsu Miyako Hotels
International

For new employees

Club Tourism
International

For new employees

Kintetsu Group Integrated Report 2021

Internal qualification test systems

FY2020
Kintetsu Real
EstateRehiring support for retired
employees

Kintetsu
Department Store

Self-reporting system
Career developmenttraining(canceled in FY2020)

Corporate
Information

Initiatives ofMateriality

4 Health

Training

Mentor system

Strategies ofmajor companies

Kintetsu
Department StoreClub Tourism
International

To promote health and productivity management, we establisheda health and productivity management framework that has the CSR
Committee—chaired by the Kintetsu Group Holdings president—at
its heart.
From fiscal 2022 onwards, the CSR Committee is scheduled to
set the Kintetsu Group Health Targets.
To work towards achieving those targets, each group company
will cooperate with the Health & Productivity Management Promotion
Secretariat, which is staffed by occupational health workers withspecialist expertise, to enact various measures and strive to improve
employee health.

Health & productivity management framework
CSR Committee
Chair: KGH president
Members: Corporate
officers from major groupcompanies
Philosophy
Health & Productivity
Management
Promotion Secretariat
Group companies

FY2020Target setting

Internal sales qualification
system(Support for acquiring
qualifications, focusedon sales techniques/
knowledge)

Implementation of
measuresMedia presentation
qualification test

Secretariat chief:
KGH committee member
responsible for humanresources
Members: KGH Human
Resources Division,
occupational health staff

Mental health measures
As well as holding regular mental health training seminars, we
introduced an external employee assistance program (EAP) to deal
with employee queries and in addition to mental health consultations
with occupational health doctors, we established a mental healthhelpdesk staffed by public health nurses. We have listened to
employee feedback and the result is a framework that can respond
appropriately. We also set up a counseling room within the Health& Productivity Management Center for an environment where
employees can easily consult someone.
Our annual stress checks cover all workplaces, and in fiscal 2020,
99.5% of employees were checked. From these findings, we areoffering interviews for those with high stress levels and improving
working environments.
The percentage of those who had high stress levels in fiscal
2020 was 3.5%, a slight decrease from 4.2% in fiscal 2019.
Going forward, we will continue working to create positive, open
workplaces where every employee can work in a lively way.
Anti-smoking measures
We continuously promote initiatives such as guidance fromoccupational health doctors, no-smoking days and times, etc.
In fiscal 2020, public health nurses toured individual workplaces,
and we reviewed smoking areas to develop appropriate smoking
environments, but also create anti-smoking posters and put themwhere smokers would see them. Also, 131 employees (including
non-smokers) attended seminars given by public health nurses. In
collaboration with Kintetsu Railway’s health insurance association,
we jointly promoted an online anti-smoking program, in whichapprox. 100 employees took part. We also present annual awards tothose workplaces whose efforts to minimize smoking are particularly
good, which boost employee motivation to make a positive change.
With lowering the proportion of employees who smoke, wehave heard from ex-smokers that giving up has improved theirhealth and made them more aware of their health. The effectsof these efforts will likely be seen in health check results in the
future. The proportion of smokers in fiscal 2020 was 11.5% and weare continuously working to discourage the habit with the aim of
reducing that to 10% by fiscal 2022.

Target setting
Measures implementation

Employees*Kintetsu Group Holdings =KGH

A public health nurse gives
a seminar on the dangers
of smoking

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Governance Initiatives
1 Corporate GovernanceCorporate governance framework
We believe that having a highly transparent, fair management framework is vitally important for building relationships of trust, and to that end wework to enhance our corporate governance.

Overview of the corporate
governance framework

Shareholders

Board of Directors

Personnel andCompensation
Advisory Committee

・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

President

Audit &
Financial auditors
Supervisory Board Cooperation

Audit &
Supervisory
Board Member
Support Dept.

Execution

Executive directors& officers

MutualchecksExecutive directors& officers

MutualchecksExecutive directors& officers

Establishing a sound corporate culture and internal
environment as clearly seen in the Kintetsu Group
Corporate Philosophy, Corporate Code of Conduct, etc.

General Meeting of Shareholders
Supervision

Cooperation

Audit & Supervisory Board

The Board of Directors is chaired by KGH’s chairman andmeets, 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 toestablish and operate internal controls. Business execution is thenoverseen by the board’s executive directors and officers.
In fiscal 2020, the Board of Directors met 10 times. Attendance
for the external directors was as follows: Kunie Okamoto 10/10(100%); Ryuichi Murata 9/10 (90%); and Masanori Yanagi 9/10
(90%).
To appraise its own effectiveness, the Board of Directors evaluates all directors and Audit & Supervisory Board members, and thefindings are analyzed and assessed by the board. Summaries of
the results are disclosed in corporate governance reports.

In principle, the Audit & Supervisory Board meets once a month.
In addition to determining basic policies toward auditing, eachboard member will report on their ordinary auditing activities, andmembers will then exchange opinions among themselves.
In fiscal 2020, the Audit & Supervisory Board met 13 times.
Attendance for the external members was as follows: Masahiro
Maeda 13/13 (100%); Kazumi Suzuki 13/13 (100%); and Toshiko
Katayama 9/10 (90%).

Cooperation

Personnel and Compensation Advisory
Committee

Auditing

Internal Audit Dept.

Discussion bodies for business execution:
Management Committee, Board of Managing Directors,
Group Strategy Committee, assorted project teams, etc.

Board of Directors

Auditing

The Personnel and Compensation Advisory Committee wasestablished to act as a consulting body for the Board of Directors,
and it aims to discuss the personnel and compensation affairs of
directors, and to assist with the board’s decisions. More than halfof its members are independent external directors. The committee
holds the functions of both a directorial candidate selection committee and a remuneration committee, and is currently composedof six members—KGH’s chairman and president, as well as four
independent external directors—and meets at least once a year.

Management
oversight

Group companies

Audit & Supervisory Board members(As of June 2021)

Corporate Code of Conduct

・ 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.

71

Kintetsu Group Integrated Report 2021

Directors
Kintetsu Group Holdings (KGH) has 12 directors, 4 of whom areexternal directors who do not have a personal stake in the group’s
success or failures. Their opinions, which come from a wealth ofexperience and wide-ranging points of view, are incorporated into
the group’s management and the board works to strengthen management oversight functions. There is currently one female director.

Of the five members of KGH’s 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.

External directors’ independence
The seven external officers who meet the independent officer criteria
have been designated as independent officers.
Independent officers are external directors and external Audit andSupervisory Board members who will not have a conflict of interest withgeneral shareholders, and the standards by which we determine independence are detailed in corporate governance reports.

Remuneration for directors and Audit &Supervisory Board members
Directorial remuneration 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 is made up of
a fixed pecuniary reward, a performance-linked pecuniary reward,
and remuneration in shares. Compensation for Audit & Supervisory Board members is pecuniary amount determined by discussions
by the Audit & Supervisory Board.
The amount of remuneration given to individual officers is disclosed in securities reports.

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Kintetsu Group
Overview

Value
Creation

Corporate
Information

2 Compliance

3 Risk Management

Legal and ethical compliance framework

Regulations and other frameworks concerning loss risk management

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 andother topics, and details can be found on our website. All officers and other employees have been issued with a handbook entitled “The Legaland Ethical Standards Manual,” and we work to spread awareness of these issues. Moreover, our policy 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 reps in each department.
We have established compliance frameworks in our group companies and are promoting appropriate corporate behavior.

In order to adequately manage business and other risks, we formulated our comprehensive Risk Management Regulations. We also, where
necessary, carry out debates on matters 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 and disasters, or matters of legal andethical compliance—we have specialist staff in addition to the overall risk management framework, and prepare separate management systems,
such as by formulating internal regulations or instruction manuals.

Basic risk management policy
Legal and Ethical Guidelines
We have formulated a set of guidelines pertaining to compliancewith laws, regulations, and corporate ethics and have distributed
copies of “The Legal and Ethical Standards Manual” to officers andother employees so as to raise awareness.
Kintetsu Group Holdings Co., Ltd. formulated the policy
below with regards to legal and ethical compliance. All employees, including officers, understand the policy and strive toensure compliance.
All managers responsible for this organization, including
the officers who manage the group, will set an example andalways endeavor to strengthen the internal system to guarantee the effectiveness of the Corporate Code of Conduct andthe Legal and Ethical Guidelines.

To quickly detect and correct infractions of legal standards,
corporate ethics, or our internal regulations, we have establishedinternal and external (via a contracted legal office) legal and ethical consultation helpdesks. The helpdesks can handle reports andqueries from KGH employees and employees from 63 group companies in the transportation, real estate, hotel and leisure, logistics,
and other fields.
To make the system easier to use, we have also establishedfemale-staffed helpdesks to deal with consultations from female
employees.
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 appropriately.

KGH and group company employees
Consultation

Report of results

Report of results

Kintetsu Group Integrated Report 2021

Consultation

Legal andExternal consultation helpdesk(Outside legal office)ethical consultation helpdesk
Report of(Legal and ethical affairs rep,
Report of
Audit &
Reportresults
Supervisory results Administrative General Affairs Div.,
Board
Kintetsu Group Holdings
members
ReportDirections
Chair of the
CSR Committee
Investigation

Cooperation

Relevant departments(incl. group companies)(As of April 2021)

Risk management bodies
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 plansand policies for such internal controls.

specific case studies.
In fiscal 2020, we provided training materials
to 63 group companies
twice and went on on-sitetraining at 12 group companies.
Employees receiving training

Board of Directors
Discussion of risk andother important matters

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, KGH andits 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.

Audit&
Supervisory
Board
members

Any meeting
Group
Strategy
Meeting

Managing
Directors
Meeting

Management
Meeting

Kintetsu Group’s basic information security
policyRisk summarizing divisions
Cooperation

Administrative
General Affairs Div.
Controls management ofoperational risk relating
to safety, etc.

Eachdivision

Corporate Strategy Div.

Controls management ofcorporate strategic risk
relating to new investments, etc.

EachdivisionGroupcompany

Groupcompany

Groupcompany

Manages business activity risk related to jurisdictions

Business continuity plans
With the aim of improving our ability to respond to extraordinary
circumstances, we formulate business continuity plans (BCPs).
These plans set out in advance a task priority order, methods, andother measures to return the business to normal operations andaim to effect this as quickly as possible.

Regulations for dealing with extraordinary
circumstances

Education and training
To raise awareness of compliance among every employee, from
top to bottom, we continuously conduct educational and training
activities through a variety of opportunities, such as new-employee
orientation.
Furthermore, to raise groupwide awareness, we provide training
materials to group companies as a way of supporting their legal andethical training. We also work to prevent scandals by holding on-sitetraining at other group companies to conduct discussions that consider individual companies’ businesses and needs, and to exchange

Overall risk management framework

Legal and ethical consultation system

Legal and ethical consultation system flow
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.

73

Initiatives ofMateriality

Strategies ofmajor companies

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.

(As of June 2021)

Highest BCM rating rank from the DBJ
In March 2021, we received the highest-rank Business Continuity Management (BCM) rating from the Development Bank ofJapan (DBJ) for the ninth consecutive year for having particularly
exceptional initiatives toward disaster preparedness and business
continuity. The BCM rating is an evaluation of such initiatives and ameans of recognizing exceptional companies.

DBJ BCM格付
2 02 0In March 2021, we received the highestrank BCM rating from the DBJ, and therating’s findings praised us in particular forour efforts in regards to business continuity.

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Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Corporate Officers

75

External Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

Director, Senior Managing
Executive Officer

Director, Managing
Executive Officer

Director, Managing
Executive Officer

Audit & Supervisory
Board Member

Audit & Supervisory
Board Member

Michiko Inoue

Kazumi Suzuki

Masahiro Maeda

Takashi Wakai

Shiro Hara

Nobu Hayashi

Hirohisa Tabuchi

Hitoshi Tada

Representative Director,
President

Representative Director,
Senior Executive
Vice President

Director, Senior Managing
Executive Officer

Director, Senior Managing
Executive Officer

Toshihide Ogura

Yoshihiro Yasumoto

Masaaki Shirakawa

Hiroyuki Murai

External Director

External Director

External Director

External Director

Representative Director,
Chairman of the Board andGroup CEOToshiko Katayama

Masanori Yanagi

Ryuichi Murata

Kunie Okamoto

Tetsuya Kobayashi

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Corporate Officer Profiles (as of September 30, 2021)

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Audit & Supervisory Board Members

Directors

Tetsuya Kobayashi

Toshihide Ogura

Yoshihiro Yasumoto

Masaaki Shirakawa

Hirohisa Tabuchi

Hitoshi Tada

Masahiro Maeda

Kazumi Suzuki

Chairman of the Board and Group CEO(Representative Director)

President(Representative Director)

Senior Executive Vice President(Representative Director)

Director, Senior Managing
Executive Officer

Audit & Supervisory Board Member(full-time)

Audit & Supervisory Board Member(full-time)

External Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

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)

Responsibilities: Corporate
Strategy Div. and Accounting Div.

Responsibilities:
Business Strategy Div.

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.2020 Senior Executive Vice President,
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.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 School ofLaw, Kyoto University(present position)
Jun.2014 External Audit & Supervisory
Board Member, the Company(present position)

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)

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)
Important positions concurrently held

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)

Director,The Kansai Electric Power
Company Incorporated

Important positions concurrently held
Director, Nozaki Insatsu Shigyo Co., Ltd.

Hiroyuki Murai

Takashi Wakai

Shiro Hara

Nobu Hayashi

Michiko Inoue

Director, Senior Managing
Executive Officer

Director, Senior Managing
Executive Officer

Director,
Managing Executive Officer

Director,
Managing Executive Officer

External Audit & Supervisory
Board Member

Responsibilities: Administrative
General Affairs Div. and Audit Div.

Responsibilities:
Corporate Strategy Div.

Responsibilities:
Human Resources Div.

Responsibilities: Secretarial Div.

Apr.1982 Joined the Company
Jun.2016 Director, Managing Executive
Officer, the Company
Jun.2020 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)

Apr.1984 Joined the Company
Jun.2019 Officer, the Company
Jun.2020 Director, Managing Executive
Officer, the Company(present position)

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)

Kunie Okamoto

Ryuichi Murata

Masanori Yanagi

Toshiko Katayama

External Director

External Director

External Director

External Director

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

Apr.1971 Joined The Mitsubishi Bank, Ltd.
May 2006 Deputy President, The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Jun.2009 Deputy President, Mitsubishi UFJ
Lease & Finance Company
LimitedJun.2010 President, Mitsubishi UFJ Lease& Finance Company Limited
Jun.2012 Chairman, Mitsubishi UFJ Lease& Finance Company Limited
Jun.2017 External Director,
the Company (present position)
Jun.2017 Advisor, Mitsubishi UFJ Lease& Finance Company Limited(currently Mitsubishi HC
Capital Inc.)
Jul.2018 Senior Advisor, Mitsubishi UFJ
Lease & Finance Company
Limited (present position)
Important positions concurrently held

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)

Director, Hotel Okura Co., Ltd.

Important positions concurrently held
Director, Fukoku Mutual Life
Insurance Company

Apr.1984 Joined the Company
Jun.2018 Officer, the Company
Jun.2021 Director, Managing Executive
Officer, the Company(present position)

Important positions concurrently held

Group Officers

Officers(Representative Director and President,

Takashi Tsuji

Kintetsu Real Estate Co., Ltd.)

Makoto Nakakita

Tokyo Office, and Taipei Office)Fumio Hagihara(Responsibilities: Public Relations Div.)(Representative Director and President,

Takashi Nishimura(Responsibilities: Audit Div.)(Responsibilities: Business Strategy Div.,(Representative Director and President,

Takahisa Kurahashi

Akio Hata

Kintetsu Railway Co., Ltd.)

Kintetsu Miyako Hotels International, Inc.)(Responsibilities: Secretarial Div., Corporate

Michiyasu Masuda

Strategy Div., and Business Strategy Div.)

Director, Sumitomo Life Insurance
Company

Director, Tobu Railway Co., Ltd.
Director, Sumitomo Mitsui TrustHoldings, Inc.

Director, Eisai Co., Ltd.

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Top
Message

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Initiatives ofMateriality

Corporate
Information

Financial Data
1. Summary of business results
FY2016FY2017FY2018FY2019Millions of yen

2. Consolidated financial statements

FY20201.Consolidated balance sheets

Operating revenue

1,204,867

1,222,779

1,236,905

1,194,244

697,203

Operating profit (loss)

64,82864,64367,77949,380(62, 115)

Ordinary profit (loss)

56,68961,323

67,12947,224(41,959)

Profit (loss) attributable toowners of parent

26,247

29,61435,962

20,561(60,187)

Depreciation

53,27852,53852,19653,92454,779

Capital expenditures

45,55554,05778,22968,90755,207

EBITDA (operating profit +depreciation)

118,107

117,182

119,975

103,304(7,336)

Cash flows frominvesting activities(41,343)

88,798102,319

58,266(25,470)(47,445)
51,914(50,796)(36,891)
52,763(64,148)(38,905)
52,089(57,440)(12,952)
39,787(46,013)
107,897
76,321

1,912,931

1,914,480

1,936,417

1,891,300

1,955,048

338,531366,410382,266

376,978

320,595

Retained earnings

55,84875,734

102,039

110,288

40,829Interest-bearing debt

1,099,224

1,080,230

1,055,904

1,058,274

1,182,219

Borrowings

775,704

769,150

736,264

713,774

792,571

Bonds payable

323,520

311,080

319,640

340,500

344,648

-

-

-

4,000

45,000Financial indicators
Operating profit to revenue
from operations (%)

5.4

Ordinary profit to total
assets (%)

2.9
7.9

5.3
3.2
8.4

5.5
3.5
9.6

4.1
2.5
5.4

(8.9)
(2.2)
(17.3)

Equity ratio (%)

17.7

19.1

19.7

19.9

16.4

Ratio of interest-bearing
debt to EBITDA (times)

9.3

9.2

8.8

10.2

-

Per share information (yen)Earnings per share (yen)13.80

155.74

189.17108.16(316.62)

Net assets per share (yen)178.02

1,927.22

2,010.87

1,983.12

1,686.55

Dividends per share (yen)

5.00

50.00

50.00

50.00

50.00

Other

282,328

289,716

257,302331,123

1,612,378

1,628,999

1,643,828

1,631,014

1,621,243

1,406,486

1,394,508

1,407,403

1,404,868

1,358,710

Intangible assets

11,81911,912

15,755

17,227

14,963

Investments and other assets

194,073

222,578

220,669

208,918

247,568

Deferred assets
Total assets

2,120

3,152

2,873

2,983

2,681

1,912,931

1,914,480

1,936,417

1,891,300

1,955,048

648,943559,904

576,515

516,707585,804

Total liabilities

897,804

960,337

946,851

969,296

1,030,748

1,546,747

1,520,242

1,523,367

1,486,004

1,616,553

Shareholders’ equity

242,741

262,829

289,027

297,241

227,766

Share capital

126,476

126,476

126,476

126,476

126,476

Capital surplus

61,47561,866

61,86561,87761,884Retained earnings

55,84875,734

102,039

110,288

40,829Treasury shares(1,059)(1,248)(1,353)(1,401)(1,424)

Accumulated othercomprehensive income

95,790103,581

93,23879,737

92,829Non-controlling interests

Total liabilities and net assets

27,651

27,82830,78428,317

17,899366,183

394,238

413,050

405,295

338,494

1,912,931

1,914,480

1,936,417

1,891,300

1,955,048

Note: “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Corporate Accounting Standard No.28) have been applied for FY2017 and thereafter.

Millions of yen
2.Consolidated statements
of income

FY2016FY2017FY2018FY2019FY2020Operating revenue

1,204,867

1,222,779

1,236,905

1,194,244

697,203

Operating expenses

1,140,039

1,158,135

1,169,125

1,144,864

759,318

Operating profit (loss)

64,82864,64367,77949,380(62,115)

Non-operating income

5,639

9,559

11,533

9,065

31,374interest and dividend income

852

1,001

1,186

1,125

833

share of profit of entities
accounted for using equity method

1,948

5,976

7,140

4,848

11,722Non-operating expenses

13,77812,87912,183

11,22011,218interest expense

10,394

9,485

8,611

7,992

7,864

Ordinary profit (loss)

56,68961,323

67,12947,224(41,959)

Extraordinary income

8,627

7,310

9,061

6,962

7,055

Extraordinary losses

20,33018,13920,66918,112

48,601

Profit (loss) before income taxes

44,98650,49455,521

36,075(83,505)

Income taxes–current

15,944

11,88916,542

11,4381,510

Income taxes-deferred

1,608

7,048

(7)

5,664

(14,459)

Profit (loss)

27,43331,55638,986

18,971(70,556)

80

Profit (loss) attributable tonon-controlling interests

1,186

1,942

3,024

(1,589)(10,368)

Note 1: The Group conducted a 1-for-10 reverse stock split with an effective date of 1st October 2017.
Note 2: “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Corporate Accounting Standard No.28) have been applied for FY2017 and thereafter.

Profit (loss) attributable toowners of parent

26,247

29,61435,962

20,561(60,187)

Issued shares(thousands of shares)
Consolidated subsidiaries(companies)

79

298,431

Non-current assets

Total net assets

Profit to equity (%)

FY2020Net assets

Financial position

Commercial papers

FY2019Property,plant and equipment

Non-current liabilities
84,816EquityCurrent assets

Current liabilities

Cash flows fromoperating activities

Total assets

FY2018

Liabilities

Cash flows

Cash and cash equivalents
at end of period

FY2017

AssetsOperating results

Cash flows fromfinancing activities

FY2016

Millions of yen

Kintetsu Group Integrated Report 2021

1,906,620
81

190,66285

190,66282

190,66281

190,662

Kintetsu Group Integrated Report 2021

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Top
MessageFinancial Data

Kintetsu Group
Overview

Value
Creation

Strategies ofmajor companies

Kintetsu Group Companies(as of September 30, 2021)

3. Segment information
FY2016FY2017FY2018FY2019FY20201,204,867

1,222,779

1,236,905

1,194,244

697,203

Transportation

231,989

228,186

226,754

221,711150,218

Railways

157,192

158,089

156,444

152,724

99,234

Bus services

34,807

34,677

34,63633,721

22,605

Taxi services

11,709Maintenance of railway
facilities

30,048Other transportationrelated business

23,48911,49727,65522,032

11,53728,347
21,426

11,08926,71022,226

7,520
22,64014,975● Kintetsu Railway Co., Ltd.

● Kintetsu Department Store Co., Ltd.

○ Iga Railway Co., Ltd.

● Kintetsu Tomonokai Co., Ltd.

○ Yoro Railway Co., Ltd.

● KINTETSU RETAIL HOLDINGS CO., LTD.

● Club Tourism Life Care Service Co., Ltd.

○ Yokkaichi Asunarou Railway Co., Ltd.

● Kintetsu Retailing Co., Ltd.

▲ Nara Ikoma Rapid Railway Co., Ltd.

● Kinsho Store Co., Ltd.

● Kintetsu Bus Holdings Co., Ltd.

72,79368,30877,72575,59760,134● Bocho Bus Company Limited● Stern Kintetsu Co., Ltd.

44,90145,84947,37447,71347,404● KITANIPPON KANKO BUS Co., Ltd.

○ Kyowa Automobiles Co., Ltd.

○ Nara Kanko Bus Co., Ltd.

○ Nako Car Maintenance Co., Ltd.

Real estate management

40,22040,96643,40843,58340,299○ Meiko Bus Co., Ltd.

379,987

395,817393,670

392,796

313,110○ NARA CONVENIENT BUS LINES Co., Ltd.

Department stores

266,095

281,817282,220

283,047

218,149

Stores and restaurants

115,345

115,286

112,647

111,039

95,673

Taxi services

470,819478,669

481,818

449,276

114,177● Kintetsu Taxi Holdings Co., Ltd.

Hotels62,156

61,18357,38951,55920,698Travel agents

396,004

405,172

411,821385,362

87,889Cinema

3,542

3,544

3,618

3,882

2,857

Aquarium

9,374

9,015

9,175

8,626

2,732
18,665
Millions of yen

FY2016
Operating profit (loss)

FY2017FY2018FY2019FY202064,82864,64367,77949,380(62,115)

Transportation

30,981

29,20632,943

27,686(24,670)

Real estate

16,82816,297

18,69817,91914,833Merchandise sales

5,359

7,080

7,783

5,152

(4,668)

Hotel and leisure

9,822

9,627

6,185

(3,693)(49,242)

Other

1,241

1,611

1,491

1,581

1,453

Operating profi t to revenue
from operations (%)

5.4

5.3

5.5

4.1

(8.9)

● Tourist International Assistance Service, Inc.
● Event & Convention House, Inc.
● KNT-CT IT Solutions Co., Ltd.

● Kintetsu Taxi Co., Ltd.
● Mie Kintetsu Taxi Co., Ltd.

● KINTETSU INTERNATIONAL EXPRESS(U.S.A), INC.

Real estate leasing○ Bocho Kanko Bus Co., Ltd.

● Tourist Experts Inc.
● KNT Business Create Co., Ltd.

Car sales / servicing

Real estate sales

19,110● Tourist Service Hokkaido Co., Ltd.

● Mie-KK Road & Highway service area Co., Ltd.

● Nara Kotsu Bus Lines Co., Ltd.

18,174● Kinki Nippon Tourist Shoji Co., Ltd.

● Nako service Co., Ltd.

142,965

16,380● Club Tourism Space Tours Inc.

● Japan Foods Create Co., Ltd.

Bus services

161,248

15,727137(incl. Kintetsu GHD)

Merchandise sales

164,245

Other

Kintetsu Group companies total:▲

Railways

149,565

Hotel and leisure：Equity-method affiliates:：Non-equity-method affiliates:

80
42
6
8

○：Unconsolidated subsidiaries:

Merchandise sales

152,176

Merchandise sales●：Consolidated subsidiaries:

Transportation● Kintetsu Bus Co., Ltd.

Real estate

Corporate
Information△

Millions of yen

Operating revenue

Initiatives ofMateriality

Other international travel agencies, etc.
● 8 companies ▲ 1 company○ KITANIPPON KANKO RYOKOU

Co., Ltd.

○ Bocho Travel Co., Ltd.

Restaurants

Other○ Kintetsu Restaurant International Co., Ltd.

Manufacturing / construction● KINSO Co., Ltd.

Hotel and Leisure● Kintetsu Engineering Holdings Co., Ltd.
● Kintetsu Electrical Engineering Co., Ltd.

Hotels & Japanese inns

● Kintetsu Railcar Engineering Co., Ltd.

● Nagoya Kintetsu Taxi Co., Ltd.

● Kintetsu Enterprises Company of America● Kintetsu Track Engineering Co., Ltd.

● Ishikawa Kintetsu Taxi Co., Ltd.

● Kintetsu Miyako Hotels International, Inc.

● ALL NIPPON ENGINEERING● Hokko Daiwa Taxi Co., Ltd.

○ Kintetsu Ryokan Systems, Inc.

○ Gifu Kintetsu Taxi Co., Ltd.

○ KASHIKOJIMA HOJOEN Co., Ltd.

○ EHIME KINTETSU TAXI Inc.

○ Kongou Katsuragi Tourism Development Co., Ltd.

○ Kintetsu Toubi Taxi Co., Ltd.

○ Hagi Kanko Hotel Co., Ltd.

● SAKAE CO., LTD.

CONSULTANTS CO., LTD.
● Kintetsu Landscape Design & Engineering

Co., Ltd.

○ Kameyama Kotsu Co., Ltd.

○ OKUNIKKO KOGEN HOTEL Co., Ltd.

● NARA KINTETSU TAXI Co., Ltd.

○ HAKONE KOGEN HOTEL Co., Ltd.

▲ The Kinki Sharyo Co., Ltd.
▲ DAI NIPPON CONSTRUCTION CO., LTD.

○ Bocho Taxi Holdings Co., Ltd.

Other △ 2 companies

Other ● 1 company

LeisureOther services● Kintetsu Leisure Service Co., Ltd.

● AD KINTETSU CO., LTD.

○ Shima Spain Village Co., Ltd.

● KINTETSU-COMMUNITY CO., LTD.

○ Hiroshima Kintetsu Taxi Co., Ltd.
○ Shunan Kintetsu Taxi Co., Ltd.
○ Hagi Kintetsu Taxi Co., Ltd.

Freight services● Kinki Transportation Service Co., Ltd.

Aquarium○ NARA POST TRANSPORT Co., Ltd.

● Osaka Aquarium Kaiyukan Co., Ltd.

International logistics solutions

Cinema▲ Kintetsu World Express, Inc.

● Kin-Ei Corp.

● Kintetsu facilities Co., Ltd.
● MiDI Corporation○ KURASHI KAGAKU LABORATORY CO., LTD.
○ K-SUPPORT Co., Ltd.

Other ○ 2 companies △ 3 companies

Transportation

13.4

12.8

14.5

12.5

(16.4)

Real estate

11.1

10.9

11.4

11.1

10.4

Merchandise sales

1.4

1.8

2.0

1.3

(1.5)

Marine transportation

Golf courses

Hotel and leisure

2.1

2.0

1.3

(0.8)

(43.1)● Kokudo Kyushi Ferry Co., Ltd.

○ Kintetsu Golf & Resort Inc.

○ Kintetsu Cable Network Kyoto Co., Ltd.

Other

7.9

9.8

8.2

8.3

7.8

○ Shima Marine Leisure○ Asuka Golf Co., Ltd.

○ Komadori Cable Co., Ltd.

1,912,931

1,914,480

1,936,417

1,891,300

1,955,048

Travel agency△ TV KISIWADA CO., LTD.

Total assets

Co., Ltd.

Rent-a-car services

Cable television● Kintetsu Cable Network Co., Ltd.

Transportation

957,145953,318

952,451

940,259

953,538

Real estate

580,421584,259594,594596,264

605,520

Merchandise sales

159,781

158,994

160,445

160,826

152,576Toll road service● Kinki Nippon Tourist Hokkaido Co., Ltd.

Hotel and leisure

182,015

186,913

198,233

146,158

115,938○ Shin Wakakusayama Motorway Co., Ltd.

● Kinki Nippon Tourist Tohoku Co., Ltd.

Insurance agency● Kinki Nippon Tourist Kanto Co., Ltd.

● Kintetsu Insurance Service Co., Ltd.

Other

24,78425,47625,18025,55324,921

Depreciation

53,27852,53852,19653,92454,779Transportation

26,472

27,263

27,18527,741

28,420Real estate

11,472

11,42911,55812,146

12,550

Merchandise sales

7,345

7,165

7,049

7,606

7,536

● Kintetsu Rent-A Lease Co., Ltd.

● KNT-CT Holdings Co., Ltd.
● Club Tourism International Inc.

Ropeways○ Beppu Ropeway Co., Ltd.

● Kinki Nippon Tourist Metropolitan Co., Ltd.
● Kinki Nippon Tourist Chubu Co., Ltd.
● Kinki Nippon Tourist Kansai Co., Ltd.

Real estate● Kinki Nippon Tourist Chugoku-Shikoku

Co., Ltd.
● Kinki Nippon Tourist Kyushu Co., Ltd.

Hotel and leisure

5,316

4,168

4,392

4,478

4,337

Other

1,975

1,836

1,728

1,630

1,688

Capital expenditures

45,55554,05778,22968,90755,207▲ Mie Kotsu Group Holdings, Inc.
△ Nara Kanko Tochi Corporation

Transportation

25,52624,86827,97028,91530,469Other ○ 1 company △ 1 company

Real estate

5,331

15,58334,927

19,912

13,949Merchandise sales

7,592

6,038

7,739

9,699

4,736

Hotel and leisure

5,798

5,526

6,004

8,792

3,876

Other

1,472

1,612

1,254

1,230

2,049

● Kintetsu Real Estate Co., Ltd.

Information processing● Kintetsu Information System Co., Ltd.

Nursing care
○ KINTETSU SMILE LIFE INC.

CVC
○ Kintetsu Venture Partners, Inc.

● Kinki Nippon Tourist Corporate BusinessCo., Ltd.
● KNT-CT Web Travel Co., Ltd.
● Kinki Nippon Tourist Okinawa, Inc.
● United Tours Co., Ltd.
● SANKI Travel Service Co., Ltd.

*Segments detailed above differ from accounting segments.

Note: “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Corporate Accounting Standard No.28) have been applied for FY2017 and thereafter.

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Company Overview and Stock Information(as of March 31, 2021)
Company overview
Trading name
Established

Major shareholders

Kintetsu Group Holdings Co., Ltd.
June 1, 1944

Name

*The predecessor Nara Tramway Co., Ltd. wasestablished on September 16, 1910.

Head office address
Capital
Number of employees
Stock exchange listing
Accounting auditor

6-1-55 Uehommachi, Tennoji-ku, Osaka
543-8585, Japan¥126.476 billion
277Tokyo Stock Exchange (First Section)
KPMG AZSA LLC

Composition ratios

Number of

to total number ofshares held
(thousand shares)

The Master Trust Bank of Japan,
Ltd. (Trust Account)
Custody Bank of Japan, Ltd. (Trust
Account)
Nippon Life Insurance Company

shares (excluding
treasury shares)

14,380

7.5

7,998

4.2

4,198

2.2

4,124

2.2

3,000

1.6

2,903

1.5

2,844

1.5

2,574

1.4

2,309

1.2

2,244

1.2

Kintetsu Group Sustainability Policy

STATE STREET BANK WEST
CLIENT - TREATY 505234

Stock / shareholder status(Standing Proxy: Mizuho Bank,

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

Ltd.)

Type of stock issued
Authorized shares
Issued shares
Number of shareholders

MUFG Bank, Ltd.

Common stock
500,000,000
190,662,061
195,884

Custody Bank of Japan, Ltd.
(Trust Account 5)
Custody Bank of Japan, Ltd.
(Trust Account 7)
Custody Bank of Japan, Ltd.

Share distribution by shareholder type

(Trust Account 6)
Custody Bank of Japan, Ltd.

Government andLocal Government
0.0%(Trust Account 1)

Materiality (Priority Issues for Sustainability )JP MORGAN CHASE BANK
385781 (Standing Proxy: Mizuho
Bank, Ltd.)

Financial
institutions
32.5%

Individuals
and others
40.4%

Creating a lifestyle that anticipates changes invalues● Energizing communities by enhancing the network● Enriching people and communities with travel● Contributing to the realization of a decarbonized
and recycling-oriented society●*Figures are rounded down to the nearest whole thousand.

Financial
instruments
business
operator
0.5%

Foreigncorporations, etc.
19.8%
Other
corporations
6.8%*Percentage calculations exclude shareholders holding less than one share.

Adoption in ESG indexes(as of June 30, 2021)● MSCI Japan ESG Select Leaders Index● MSCI Japan Empowering Women Index● S&P/JPX Carbon Efficient Index● SOMPO Sustainability Index

Valuecreation

Stock price and Trading volume

Ensuring safety and pursuing peace of mind
● Bolstering our governance and risk management● Fostering diverse human resources and supporting
their activities●

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 2016

Businessfoundations

April 2017

April 2018

April 2019

April 2020

March 2021

*Figures reflect changes to the number of share units and a reverse stock split dated effective on October 1, 2017.

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84