Kintetsu Group Integrated Report 2023

Corporate Strategy Division
Kintetsu Group Holdings Co., Ltd.
6-1-55 Uehommachi, Tennoji-ku, Osaka 543-8585, Japan
https://www.kintetsu-g-hd.co.jp/lang/english/
https://www.kintetsu-g-hd.co.jp
Published February 2024
Published March 2024 (English)

Kintetsu Group Integrated Report

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

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

■ Kintetsu Group Corporate Code of Conduct●●

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 high ethical standard.

●

We will disclose information as appropriate and ensure transparency of management.

●

Kintetsu Group Integrated Report 2023

We will increase corporate value through the independence and cooperation of groupcompanies.

●

●

1

We will raise customer satisfaction through the business activities of group companies.

We will respect human rights and foster workplaces where labor and management work
together harmoniously.
We will outright refuse any relationship with anti-social forces or organizations.

Kintetsu Group Integrated Report 2023

2

Editorial Policy for Kintetsu Group Integrated Report 2023

Contents

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

2023 Highlights

2

Kintetsu Group Sustainability Policy

PART
Contents

Part of report

Messages from Top Management

Chairman: The stance of the Kintetsu Group
President: Kintetsu Group issues and key initiatives

PART 1

Value Creation /Sustainability Policy & Materiality (Priority Issues)

Value creation process / promotion frameworks / risks, opportunities, and
KPIs

PART 2–PART 4

Management Strategy / Human Resources Strategy /Strategies for the Digital Transformation

Explanations by the director in charge

PART 3

Initiatives for Important Business Areas

Steps taken and outlook for the Abeno/Tennoji area and Ise-Shima area

PART 3Major Company Strategies

Business outlook and measures for the future set by the directors of majorgroup companies

Environmental Targets
Roundtable Discussion with External Directors

3

Editorial Policy

1

Messages from Top Management

5

Message from the Chairman

7

Message from the President

Our Value Creation Story

PART 3

9

Value Creation Process

Revision of the Kintetsu Group Environmental Targets

PART 4

11

Business Overview

Roundtable discussion with three external directors on corporate valueenhancement and sustainable management

PART 5

13

Business Area

17

Business Data

19

Kintetsu Group Sustainability Policy &Materiality (Priority Issues)

Figures: April 1, 2022 to March 31, 2023
Initiatives: April 2022 to December 2023

Reference guidelines, etc.

Scope covered

Figures:●

IFRS Foundation “International Integrated Reporting Framework”
Ministry of Economy, Trade and Industry“Guidance for Collaborative Value Creation”● Global Reporting Initiative“GRI Sustainability Reporting Standards”● TCFD Consortium“Guidance on Climate-related Financial Disclosures 3.0 (TCFD Guidance 3.0)”

PART

●

 intetsu Group Holdings andK
consolidated subsidiaries
Initiatives: Kintetsu Group Holdings and groupcompanies

Disclosure of various information
Posted on our website, etc.
(https://www.kintetsu-g-hd.co.jp/)

3

Our Value Creation Strategy

25

Management Strategy

27

Medium-Term Management Plan Progress

29

Human Resources Strategy

31

Strategies for the Digital Transformation

Corporate governance report33

Feature Development of the Abeno and Tennoji Area

Detailed sustainability information

35

Feature Promoting the Revitalization of the Ise-Shima Area

Safety report

37

Financial / Non-Financial Highlights

Financial information

Kintetsu Group Holdings website
Securities report
Integrated Report 2023

Comprehensive

PART

Major Company Strategies

Non-financial information

Contents
Integrated report (this report)

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

Securities report

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

Corporate governance report

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

Detailed sustainability
information

Detailed data and information on our initiatives relating to the environment, safety, peace of mind, personnel, andother sustainability topics are available on our website.
(https://www.kintetsu-g-hd.co.jp/csr/)

Safety report

This report is prepared and published by Kintetsu Railway Co., Ltd. and other transportation companies in
the Group in accordance with the Railway Business Act and Road Traffic Act, which describes their efforts toensure the safety of transportation.

Forward-looking statements

PART

4

Initiatives for Materiality
Value Creation

2

Period covered

ConciseKintetsu Group Management Philosophy

53

Creating a Lifestyle that Anticipates Changes
in Values

56

Energizing Communities by Enhancing the
Network

59

Enriching People and Communities with
Travel61

Contributing to the Realization of a
Decarbonized and Recycling-Oriented Society

Business Foundations

76

Fostering Diverse Human Resources andSupporting Their Activities

89

Ensuring Safety and Pursuing Peace of Mind

ESG environmental
data

PART

ESG personnelrelated data

5

Corporate Governance

39

Kintetsu Railway Co., Ltd.

93

Roundtable Discussion with External Directors

41

Kintetsu Real Estate Co., Ltd.

99

43

Kintetsu World Express, Inc.

Bolstering Our Governance and Risk
Management

45

Kintetsu Department Store Co., Ltd.

107

Corporate Officers

47

KINTETSU RETAIL HOLDINGS CO., LTD.

49

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

6

Corporate Information

51

111

The History of the Kintetsu Group113

Social Contribution Activities

115

Financial Data

118

Kintetsu Group Companies

119

Company Overview and Stock Information

PART

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

3

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

4

PART

Messages from Top Management

The philosophy common to all our management strategies is

become more difficult than ever. The Kintetsu Group is facing

to take on the many challenges and difficulties encounteredchallenges that encompass ongoing advances in digitalwhile also gathering extensive information and making boldtechnology, uncertain global economic trends and geopoliticaldecisions with an eye to the business environment of therisks, business continuity planning in a time of unpredictable

future. I believe this approach enables us to turn crises into

personnel shortages, and the increasing complexity of theopportunities.

issues that companies must contend with. These include theDuring the COVID-19 pandemic that began in 2020, themultitude of stakeholders and emerging ESG issues we face.

business associated with transporting people, which is theWe can easily foresee that problems will emerge that evencore of the Kintetsu Group’s operations, suffered a major

a company with 113 years of experience will be challenged

setback. Even amid those difficult times, we continued toto solve. For management in this era of high uncertainty, ittake on every challenge, promoting dual-axis management

is more important than ever that we adhere to our statedof our hotel businesses (which include directly owned hotels

philosophy. We intend to continue contributing to society byand contracted hotels) while proactively moving forward bymeeting every challenge head-on as we strive to enhance ourreviewing our portfolio and by making Kintetsu World Express,

corporate value.

Taking on All Challenges

we should reflect this teaching in the manner in which we

stakeholders, who include its shareholders, customers,

implement the preventive measures stated above. It isbusiness partners, employees, and members of the public

important that we share this information not only with thesector. By building on the support of these various parties,

companies involved, but with the entire Kintetsu Group as

our company has been able to accumulate assets classified

the basis for inculcating these preventive measures. An

as non-financial information. These include assets thatadherence to honesty requires correct actions that ensure

are difficult to quantify—such as brands, goodwill, human

compliance with laws and regulations. These represent theresources, and expertise—that can exceed the value of thefoundation of business, along with reliably fulfilling contractual

cash, deposits, and fixed assets recorded in our consolidated

matters and earning appropriate profits. In addition, if we dofinancial statements. I believe that those assigned withnot manage our organization and engage in communication

management responsibilities have a duty not only to protectwith courage and a spirit of benevolence, all rules will becomethese quantifiable assets, but also to preserve and pass on

but mere formalities.

those assets that are difficult to quantify.

A scandal at a single company within the Group can lead

Looking to other matters, in April 2023 it was discovered

to a damaged brand and loss of credibility across the entire

structural reforms throughout the Group without setting any

that Kinki Nippon Tourist, a member of the Group, had been

Kintetsu Group. In an effort to restore trust and confidence, wewith the founding of the Nara Tramway. We have taken on

boundaries and resolutely rebuilt our financial structure,

overcharging local governments for contracted services. We

will continue to provide stringent compliance education andmany challenges throughout our history of more than 110

which had been damaged by the collapse of the bubble

apologize to all concerned for the distress and inconvenience

re-examine the governance systems that are in place at eachyears, including the construction of a railway between

economy and the effects of the accounting “Big Bang” (thethis incident has caused.

group company. I believe that a company is an organization,

Osaka-Uehommachi and Nara, a project saddled withmandated adoption of International Accounting Standards

In response to this incident, this company’s parent, KNT-CT

that an organization is composed of people, and that these

construction difficulties and a lack of funds; the recovery

by Japanese corporations). In 2015, Kintetsu Railway was

Holdings, conducted its own study and also took into accountpeople create the brands that engender trust. We will focus

from the devastating Isewan Typhoon in the fall of 1959; andreorganized as a pure holding company in order to strengthen

the recommendations for preventive measures contained

the strengths of everyone in the Kintetsu Group to ensure thatthe construction of the new Kintetsu express rail network. In

the Group’s management functions and institute autonomousin the investigative report received from an independently

we preserve for posterity the assets we have accrued fromaddition, we extended the railway from Osaka-Uehommachi

management at each operating company. Under theestablished investigative committee. In September 2023, theour stakeholders, and that these assets are securely passed

to Osaka-Namba through a tunnel in the year of the 1970

governance of the new holding company, named Kintetsu

company published the recurrence preventive measures thaton to future generations. In this regard, we remain committed

Osaka Expo; developed tourist facilities in Ise-Shima; andGroup Holdings, we have taken on bold challenges that go

had been compiled and formulated in this effort.

to meeting our corporate responsibilities as a Group that fulfills

opened ABENO HARUKAS in 2014.

beyond mere business growth. For example, we transitioned

In his book Bushido, the author Inazo Nitobe puts forth,

to a system that allows operating companies in the railway,

as a universal teaching, a spirit of honesty, courage, andKintetsu Group Integrated Report 2023

Initiatives for Materiality

benevolence that all business people should adopt. I believe

The history of the Kintetsu Group dates back to 1910

Moreover, around the year 2000, we implemented

5

The Kintetsu Group has been able to develop and growits business for 113 years thanks to the support of its many

Our Value Creation Strategy

a global logistics operation, a wholly-owned subsidiary.

Preserving Our Assets for Posterity

Boldly taking on the challenges of the new era,preserving what is important, and passing on ourassets to future generations

Our Value Creation Story

environment surrounding our corporate operations have

Corporate Governance

Representative Director andChairman of the Board

However, our attempts to forecast the economic

optimal corporate culture for their respective businesses.

Corporate Information

Tetsuya Kobayashi

real estate, hotel, and distribution sectors to establish the

Messages fromTop Management

Message from the Chairman

its role as a valued public institution.

Kintetsu Group Integrated Report 2023

6

The new Kintetsu Group:
Meeting the challenges ofa changing society
Implementing our Medium-Term
Management Plan with resolve
I was appointed president of Kintetsu Group Holdings in June
2023. Previously, I served as president of Kintetsu Railway, the corecompany of the Group, for four years. For more than three of those
years, I had to contend with the unexpectedly challenging economic
circumstances that resulted from the COVID-19 pandemic. However,having been dealt this unprecedented crisis, I believe we were able
to improve the sustainability of our railway business by implementing
drastic structural reforms as well as various other measures. I pledge
to apply the lessons learned from that difficult experience to the
management of the Group.
Looking back at the performance of the Kintetsu Group in fiscal
2022, it is clear that we vigorously implemented Kintetsu Group
Medium-Term Management Plan 2024, which we formulated in
May 2021. In August 2022, the Kintetsu World Express (KWE)
Group, one of the world’s leading international logistics businesses,
became a wholly-owned subsidiary, transforming the Group from a

7

Kintetsu Group Integrated Report 2023

Maintaining our commitment tomeeting challenges and contributing
to society
Since joining the company in 1982, I have spent most of mycareer in the railway business, mainly in positions related to civilengineering. Two major projects that I was involved in early in mycareer were the double-tracking of the Shima Line, which provides
access to Shima Spain Village and other resort facilities in the Shimaarea, and the construction of the new Keihanna Line, which provides
a link to Keihanna Science City. The former project resulted from themore diverse tourist base and competition with private vehicles; thelatter resulted from a review of town development plans and the like.
Unfortunately, we did not achieve the outcomes we initially expectedfrom those projects. However, today we have renewed our efforts torevitalize the Ise-Shima area in addition to our initiatives to establish
reciprocal direct links to Yumeshima in Osaka while strengthening
cooperation with local governments. Now, we find ourselves in an
era in which we can realize the full potential of both these businesses.
Clearly, the majority of our businesses cannot be evaluatedovernight, and it can take a very long time to accrue results. We
therefore feel it is important to manage our business from a longterm perspective.
As part of this effort, the Group is focusing on working together
as a single unit by increasing opportunities for dialogue. This
includes holding training-camp-style study sessions that bring
together the presidents of our major companies. In relation to thisinitiative, we remain dedicated to maintaining a broad perspective
and maximizing the Group’s strengths through collaborations among
all our companies.
In an era in which sustainability has come to the fore, we take pridein our work as a Group that provides much-needed social infrastructureand services. We pledge to continue taking on the challenge ofenriching our changing society hand-in-hand with our stakeholders.

Kintetsu Group Integrated Report 2023

Our Value Creation Story
Our Value Creation Strategy

Representative Director andPresident

As the impacts of the COVID-19 pandemic gradually subside, it
has become clear which aspects of our lives have returned to normal
and which have changed permanently due to the pandemic response.
I believe my role is to create a “new Kintetsu Group” that benefits all inthis era of a changing society under the current “new normal.”
In light of the progress achieved in reforming our businessportfolio and the fact that the Japanese economy is exhibiting a fullfledged recovery, in June 2023 we raised our operating profit target
for fiscal 2024 from over 65 billion yen to over 86 billion yen. We
have also updated our target management indicators for fiscal 2024,
including increasing the interest-bearing-debt-to-EBITDA ratio fromaround eight to around seven. Beyond that, we are forecasting over
100 billion yen in operating profit and a net interest-bearing-debt-toEBITDA ratio of around six.
As we set out to promote a variety of initiatives, I have identified
five issues of particular focus that are affecting the Group.
First, the declining birthrate and aging population of Japan arecontributing to an accelerating population decline along our railway
lines in addition to a corresponding decline in demand for associatedbusinesses. Second, the geopolitical risks we face are becoming
more complex, as seen in Russia’s prolonged invasion of Ukraine
and ongoing Middle East conflicts. Third, the risk of natural disasters
is increasing, such as the risk of a Nankai Trough earthquake and theworsening damage from flooding and high winds due to the effects ofclimate change. At the same time, the Group’s facilities, which wereintensively developed during the postwar period of high economic
growth, are aging and equipment is becoming obsolete. The fourthissue is the labor shortage, which has become increasingly apparent
in recent years, and which is having an effect on business continuity.
The impact of this phenomenon on business as well as society atlarge is expected to become even more serious in the future, witha shortage of bus and taxi drivers making it difficult to provide
public transportation services, which are an essential aspect of theinfrastructure of daily life. The fifth and final issue is the increasing
global awareness of the need for sustainability. Conservation of the
global environment in the form of addressing climate change aswell as promoting human happiness, a vibrant society, and respectfor human rights are all important themes, but our efforts remain a

Initiatives for Materiality

Takashi Tsuji

to create an environment in which our employees can experience
both growth and a sense of accomplishment. We will also create acomfortable work environment by promoting health and productivity
management and other benefits. In addition, to strengthen thefoundation for sustainable business operations, we are developing arobust risk management and compliance system.
While I have already addressed the five measures we will focus
on above, the true strength of the Group lies in the fact that a varietyof our businesses function in close contact with customers, andthus they are able to monitor minute changes in customer demand
firsthand. Personally, I believe that the keys to uncovering problems
and devising solutions can be found in the workplace, so I visit
our workplaces often to listen to our employees as a means ofunderstanding customers and their needs through close interaction.
Regardless of the current era or the industrial sectors we operate in,we manage to earn the trust of our stakeholders by managing ourbusinesses from the customer’s perspective.

Corporate Governance

Developing initiatives focusedon the future

work in progress. Recently, Kinki Nippon Tourist, a member of theGroup, was involved in an incident involving the overbilling of a local
government; as a result, we are strongly committed to establishing acompliance system that will enable us to regain public trust.
While remaining aware of these issues and future management
goals, we will focus on the following measures with a medium- andlong-term perspective.
First, local governments and residents situated alongside ourrailway lines are working together with the group companies torevitalize these railside areas by creating vibrant towns and tourism
attractions. I myself have visited many local governments along
these routes and have had a series of conversations with upper
management. In the fall of 2023, we concluded a comprehensive
partnership agreement with Nara Prefecture and the city of Ikoma.
Working in collaboration with many stakeholders, we intend topromote a regional revitalization effort that incorporates new
perspectives, contributes to the growth of the resident population,and sparks demand. In order to create a vibrant nonresident
population by leveraging the charm of the cultural, natural, and tourist
resources along the railway line, we have established the Ise-Shima
Office together with Kintetsu Leisure Create in the Ise-Shima region,
our most important tourism center. Moreover, we are collaboratingwith the entities in the region and formulating new strategies.
Next, we will proceed with measures that take advantage ofthe opportunities presented by Expo 2025 Osaka, Kansai, and the
Yumeshima Integrated Resort (IR) scheduled to be completed in
2030. As an infrastructure company rooted in the Kansai region, we
intend to do our utmost to attract large crowds to Expo 2025 andto Yumeshima IR while encouraging them to visit the areas along
our railway lines, which are full of engaging tourist attractions. We
also plan to enhance the appeal of Uehommachi Terminal, where theGroup’s facilities are concentrated, and create an attractive easterngateway to Osaka. As a first step, we are redeveloping our bus
terminal in preparation for Expo 2025.
In parallel with our effort to strengthen our facilities along therailway lines, we will seek to provide high value-added services bycombining the Group’s strengths as we expand into markets outside
Japan and strengthen activities to attract inbound customers at the
points of origin. We will also enhance our operations in the Tokyo
metropolitan area and in parts of the country not served by ourrailway lines.
To keep pace with the times, we intend to emphasize thedigital transformation as a means of addressing various problems
and creating value. In June 2023, we established the Digital
Transformation Management Office in our company. Through thisinitiative, we intend to improve efficiency and productivity, spark
demand by building a new digital customer base, and develop
personnel skilled in the digital transformation throughout the Group.
We are committed to focusing more intently than ever before
on implementing sustainable management and turning challenges
into opportunities. By providing a wide range of our services to local
communities—centered on public transportation, which is highly
efficient and has a low environmental impact—we aim to achievesustainable growth for the Group as well as for society at large.
Moreover, we recognize that our employees represent the very coreof our business. In order to contribute to their spiritual enrichment
as well as their physical and mental well-being, we will continue

Corporate Information

Japan-focused corporate group to one that operates globally witha renewed emphasis on B-to-B transactions. As a result, we havebeen able to construct a balanced portfolio of businesses.
As well, we expanded our asset-light businesses: the KWE
Group, a freight forwarder that does not maintain its own transport
fleet; and our hotel business, which we have split into two
tracks—wholly-owned hotels we manage directly and contracted
management hotels. At the same time, we have lowered our breakeven point permanently by implementing a variety of rationalization
measures to benefit each of our businesses, and at Kintetsu Railway,
we have sought to improve the sustainability of the business byobtaining approval to revise fares. Through these initiatives, we havetransformed the Group’s business model and established a new
foundation for the Kintetsu Group.

Messages fromTop Management

Message from the President

8Our Value Creation StoryPART

Value Creation Process (as of September 2023)

Acceleration of digitization●

Heightened geopolitical risk●

Growing awareness of sustainability●

Changes in lifestyles and diversification

Kintetsu Group
Medium-Term
Management Plan
2024

Societal ValueContribution to therealization of aprosperous society
through co-creation

Real EstateBusiness

Main Measures

Management Resources●

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

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

A logistics network extending around theglobe
45 countries, 300 cities, and683 business locations

Intellectual Capital●

Expertise accumulated in a wide range ofbusinesses

Human Capital●

Reforming ourbusiness portfolio

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

Collaboration andsharing ofmanagement
resources

International
Logistics
Business

Merchandise
Sales
Business

Contributing
to therealization ofa prosperous
societyfounded uponco-creation
throughthe strengthof our
networks

Stable operating cash flow creation

Social Capital●

Extensive customer base, mainly in ouroperating area●

Relationships of trust with stakeholders

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

Tourism
A borderless,enrichingpeople’s hearts connected world

Customers

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

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

Shareholders& investors

Kintetsu
Group

Regional
communities■ Energizing communities by enhancing the network

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

Employees

Business
partners■ Ensuring safety and pursing peace of mind

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

Economic Value
Sustainable Business Growth

Natural Capital●Society in whichpeople can workwhere they wantto live
Prosperous
Society in whichlivingpeople help one
environments
anotherHotel and
LeisureBusiness

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

Financial Capital●Strengthening
cooperation withexternal partners

Transportation
Business

Our Value Creation Story

Climate change, increase in natural disasters●

Our Value Creation Strategy●

Initiatives for Materiality

A declining population in Japan with fewer
children and aging citizens

Corporate Governance●Value Creation

Kintetsu Group’s Corporate Philosophy, Strategies, and Businesses

Corporate Information

External Environment

Messages fromTop Management

The value creation process refers to generating a flow of sustainable value through business activities.
The Kintetsu Group aims to achieve sustainable growth and contribute to the realization of a prosperous
society founded upon co-creation. We do this by addressing social issues with integrity and promoting
business activities that prioritize sustainability.

Kintetsu Group Management Philosophy“To Support Daily Life, To Create More Value.”

Capital enhancement through value circulation and sustainable value creation
9

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

10

Kintetsu Railway Co., Ltd.

Real estate sales and Real estate leasing

Real EstateBusiness

Major group company
Kintetsu Real Estate Co., Ltd.

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

Air Freight

International
Logistics
Business

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

Sea Freight
Major group company
Kintetsu World Express, Inc.

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

Department stores

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

We operate department stores andcommercial facilities, with many—including
Kintetsu Department Store Main Store Abeno
Harukas—located at major Kintetsu stations.
We have also expanded our franchise store
business, particularly in the food, housing, andservice industries. In the out-of-store sales
business, to meet customers’ wide range ofneeds, we are working to develop goods not
sold in our department stores, as well asbuilding relationships with suppliers.

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

11

Kintetsu Group Integrated Report 2023

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

Travel agency

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

Maintenance of railway facilities

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

Other transportation-related business

Other 9%

Railways

Maintenance ofrailway facilities

61%

11%

Taxi
services 5%
Busservices 14%

Operating revenue(billion yen)

300

150.2

200

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

-2.7
-24.6

Real estate
management 25%

Realestate sales

49%(billion yen)

184.9
142.9

100

Operating revenue

2021

Operating revenue

300
200

Operating profit

(FY)

163.8
16.0

¥163.8 billion
26%

2020

Other 5%

Logistics

Air freight

45%

Logistics

2021

Operating revenue(billion yen)

2022

50
40
30
20
10
0
-10
-20
-30
-40
-50

(billion yen)

29.3

14.8

0

2022

Real estateleasing

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

191.7

0

¥191.7 billion

2020

Real estate management(billion yen)

13.0

100

Operating revenue

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

We also offer real estate brokerage andother solutions and proposal-based contract
work for higher-grade renovations. In addition,
we have expanded our business to coveragriculture, solar power generation, life care,and golf.

158.9

Operating profit

(FY)

50
40
30
20
10
0
-10
-20
-30
-40
-50

Operating profit

710.8

700
600

19%

500

Sea freight

31%

Operating revenue

400¥710.8 billion

300(billion yen)

23.3

200
100
0

2022

(FY)

50
40
30
20
10
0

Messages fromTop Management

Major group company

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

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

Our Value Creation Story

Bus services

Taxi services* These figures are from the consolidated balance sheets from July 2022 on.

Stores and restaurants

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

Department
stores53%

CinemaWe operate the Abeno Apollo Cinema, anurban cinema complex.

Aquarium

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

300

Aquarium 2%
Cinema 1%

Hotels11%(billion yen)100

¥292.6 billion

50
40
30
20
10
0
-10
-20
-30
-40
-50

202.7
2.7

-4.6

-1.5

2020

2021

Operating revenue

2022

Operating profit

292.6

300
200

Operating revenue

86%

188.2

0

¥202.7 billion

Travel agency(billion yen)100

Operating revenue

Operating profit

313.1

200

Stores andrestaurants

47%

Operating revenue(billion yen)

114.1

(FY)

(billion yen)

50
40
30
20
10
0
-10
-20
-30
-40
-50

166.6
9.1

0

-49.2
2020

-21.6
2021

2022

Corporate GovernanceTransportation
Business

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

Corporate Information

Railways

Operating revenue and profit(FY2020–2022)

Our Value Creation Strategy

Operating revenue breakdown(FY2022)

Business activities

Initiatives for Materiality

Business Overview(FY)

Kintetsu Group Integrated Report 2023

12

Business Area: Kintetsu Operational Area

Aichi Pref.

Kyoto Subway

World Heritage
Historic Monumentsof Ancient Kyoto● Miyako City Kintetsu Kyoto Station

Official store #1 opens

Miyako Hotel Yokkaichi
Kintetsu Department Store,
Yokkaichi Store

Main facilities in Kyoto area
● The Westin Miyako Kyoto(Starting November 2023)

KuwanaMiyako Hotel Yokkaichi

Kyoto(September 2023 in Kintetsu
Department Store Main Store
Abeno Harukas)

Kintetsu-Yokkaichi● Miyako Hotel Kyoto Hachijo

Connecting Yumeshima directly by our rail lines● Miyakomichi
The Westin Miyako Kyoto
Yokkaichi Asunarou Railway Line

Osaka Pref.

Convenience stores

Supermarkets● FamilyMart● Kinsho Store and Harves

Shiroko

Asuka Country Club
Kintetsu Department Store,
Ikoma Store

Hanshin Line
Shin-Osaka
OsakaUehommachi
Tsuruhashi

Kintetsu
Department Store,
Nara Store

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

OsakaNamba
OsakaOsaka Metro
Abenobashi

Mikasa Ryokan
Nara Kasugaokuyama Tsukihitei

Iga-Kambe
Iga Golf Course

Ise-Nakagawa

Kikyogaoka Golf Course

Nara Pref.

World Heritage

・Kintetsu Bus・Nara Kotsu Bus Lines・Nara Kanko Bus・Mie Kotsu
・Meihan Kintetsu Bus, etc.

Shorenji Lake Hotel

Yumeshima

Matsusaka

Yamato-Yagi

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

Yumeshima
World
Expo venue

Hanayoshino
Country Club

Osaka-

World Heritage

Ise-Shima National Park

Kashikojima

Shima Spain Village

Ugata

Yoshino-Kumano
National Park

Kashikojima
Miyako Resort
Okushima
Aqua Forest

AONIYOSHI, sightseeing limited express(between Osaka-Namba, Kintetsu-Nara,and Kyoto)

Hinotori, Meihan limited express(between Osaka-Namba andKintetsu-Nagoya)Blue Symphony, sightseeing limited
express(between Osaka-Abenobashi and
Yoshino)Shimakaze, sightseeing limited
express(between Osaka-Namba, Kyoto, andKintetsu-Nagoya, and Kashikojima)

Tsuruhashi
Major facilities in Abeno/Tennoji area
ABENO HARUKAS

OsakaAbenobashi● HARUKAS 300 (Observatory)● Osaka Marriott Miyako Hotel● ABENO HARUKAS Art Museum● Kintetsu Department Store● Sheraton Miyako Hotel Osaka● Kintetsu Department Store,

Uehommachi Store● Uehommachi YUFURA

Kintetsu Group Integrated Report 2023

YoshinoHotel Shima Spain Mura

Sacred Sites and Pilgrimage Routes
in the Kii Mountain Range

Main facilities in Uehommachi area

13

KintetsuNagoya

Extensive limited express network withattractive trains

Osaka-Uehommachi

Namba
Osaka
Aquarium Kaiyukan
CosmosquareWorld Expo venue
Image courtesy of the Japan Association
for the 2025 World Exposition

Mie Pref.

KintetsuNara

Ikoma

Toba

IsuzugawaIse Jingu

YoshinoKintetsu
Keihanna
Line

Toba Bay Cruise &Dolphin Island

IseshiUjiyamada・Kintetsu Cable Network
・Kintetsu Cable Network Kyoto
・TV KISIWADA・Komadori Cable
・KCN Nantan

Shin-Osaka

Osaka Metro
Chuo Line(extension)
OsakaOsaka-Namba Uehommachi
Osaka-Abenobashi

Mt. Yoshino cherry blossoms

Universal
Studios Japan

Promotions in conjunction with Expo;
Conversion to Expo satellite sites throughgroup collaboration

Kyoto

Kintetsu Department Store,
Kashihara Store

Kashiharajingumae

KansaiInternational Airport

Hotel Kintetsu
Universal City

Abeno
TennojiStrengthen sales collaboration between group facilities suchas the Osaka Aquarium Kaiyukan and Hotel Kintetsu
Universal City and the Expo site and individual facilities

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

Cable televisions

Osaka Aquarium Kaiyukan

Bus terminal development for the Expo;
Promotion of sightseeing tours thatconnect with Kintetsu rail lines

Bay area tourism around Yumeshima and lodging
facilities

Taxi services

Historic Monumentsof Ancient Nara

Buddhist Monumentsin the Horyu-ji Area
Mozu-Furuichi
Kofun GroupTsu

Nara Park

Kintetsu-Nara
World Heritage

World Heritage

Enlarged view

Uehommachi
Bus services
Gakken-Nara-Tomigaoka
residential area

Kobe Airport

Attract customers to the Nara area via Ikoma Station utilizing
a direct connection between the Osaka Metro Chuo Line andthe Kintetsu Keihanna Line

Connecting Yumeshima to our terminal by shuttlebus

Chubu Centrair
International Airport

Interactive
Aquazoo,
NIFREL

Osaka
International
AirportOperation of train withoriginal train wrap for Expo
2025 Osaka, Kansai

Corporate GovernanceKyoto Pref.

Initiatives for Expo 2025 Osaka, Kansai

Our Value Creation Story

Kintetsu-Nagoya

Our Value Creation Strategy

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

Kintetsu Line
Kintetsu Group Line
Other Line(interconnection section)
Other Line
JR Shinkansen Line
Department Store /Commercial Facility
Hotel / Japanese Inn
Leisure Facility(as of September 30, 2023)

Initiatives for Materiality

We are pushing ahead with community development and expanding into lifestyle-related businesses, centered on ouroperational area, which covers the Kinki and Tokai regions. As well as supporting people’s daily lives, we are making fulluse of the regions’ tourism potential to create excitement for visitors.

Messages fromTop Management

Creating an area full of wonder through a wide range ofbusinesses

ABENO HARUKAS

Main facilities in Kashikojima area
Shima Kanko Hotel The Bay Suites● Shima Kanko Hotel● Miyako Resort Shima Bayside Terrace● Kashikojima Hojoen● Kintetsu Kashikojima Country Club

Main Store Abeno Harukas● Miyako City Osaka Tennoji● Ten-Shiba● Abeno Apollo Cinema● Kashikojima España Cruise

Shima Spain Village

Kintetsu Group Integrated Report 2023

14

Business Area: Overseas / Japan(as of March 31, 2023)

Hotel
TravelRestaurant
Railcar manufacturing

Business development in Japan

Europe,Middle East &Africa1

2

The Americas

54South East Asia &Oceania● Bus service

13● Taxi service

14● Ferry / Ropeway

5● Department store

10● Parking/Service Area

10

● Hotel / Japanese inn

26

Our Value Creation StoryKWE Group
KWE
APLL
KWE & APLL

(as of September 30, 2023)

Japan,Taiwan &Korea (JTK)
Okinawa

East Asia

3 6 APL Logistics

Kintetsu
Operational
Area▶pp. 13–14

Miyako Hotel
Los Angeles

Sheraton Miyako Hotel Tokyo

Hiroshima Kintetsu Taxi
HAKONE KOGEN HOTEL

Miyako Hotel Hakata

worldwide 45
683 locations

KWE Group
1

2

CanadaUnited States
BrazilMexicoEngland
Belgium
Netherlands
Czech Republic
FranceGermany

IrelandItaly
Romania
RussiaSwedenSwitzerland

countries

300 cities

United Arab Emirates
Saudi Arabia
Bahrain
Republic of South Africa

3

Hamanako Service Area

Australia
Bangladesh
Cambodia
India
Indonesia
Laos

Malaysia
MyanmarPhilippines
Singapore
Sri Lanka
Thailand

Vietnam

4

China

5

Japan
South
Korea
TaiwanMiyako Hotel Gifu Nagaragawa
Kokudo Kyushi FerryTokyo●Sheraton Miyako Hotel Tokyo

Egypt

Costa Rica

PanamaTurkeyGuatemalaPakistan

Chile

Honduras

Aichi●Kariya Parking Area

●Miyako City Tokyo Takanawa

Gifu

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

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

Kanagawa●Gifu Kintetsu Taxi

●HAKONE KOGEN HOTEL●Kintetsu Toubi Taxi
●Miyako Hotel

Tochigi

Restaurant

・Edogawa Taipei Zhongshan Store

Railcarmanufacturing ・KINKISHARYO International, L.L.C.

●OKUNIKKO KOGEN HOTEL

Shizuoka●Hamanako Service Area

15

Kintetsu Group Integrated Report 2023

Messages fromTop Management

Through our transport network—including buses, taxis, ferries—condominiums, office buildings, hotels,
travel facilities and other forms of infrastructure, we provide valuable services throughout Japan.

Our Value Creation Strategy

Japan

Initiatives for Materiality

We will expand our business globally, to Asia, Europe, the Americas, and elsewhere, centered oninternational logistics.

Shiga●Kintetsu Department Store,

Kusatsu Store
Hyogo●Miyako Hotel Amagasaki●Kobe Kitano Hotel

Gifu Nagaragawa●Hiroshima Kintetsu Taxi

Fukuoka●Hokko Daiwa Taxi
●Miyako Hotel Hakata

Yamaguchi●Bocho Bus Company

Oita●Shunan Kintetsu Taxi

●Kokudo Kyushi Ferry●Hagi Kintetsu Taxi

●Beppu Ropeway●Hagi Kanko Hotel

Wakayama
Ishikawa●Meiko Bus●KITANIPPON KANKO BUS●Kintetsu Department Store,●Ishikawa Kintetsu Taxi

Hiroshima

Corporate Information

Overseas

Development in Japan Utilizing Our Group Strengths

Corporate GovernanceWorldwide Development Driven by Our Global Networks

Ehime●EHIME KINTETSU TAXI

Wakayama Store●Amagozen Service Area

Kintetsu Group Integrated Report 2023

16

Business Data (as of March 31, 2023)
Transportation Business

International Logistics Business
Other railways

Nara Ikoma Rapid Railway

Bocho BusKITANIPPON KANKO BUS

Nagoya Kintetsu Taxi
Other

1,441 ー(Consolidated subtotal)

Other

1,070 Mie, Aichi, etc.
74 Nara, Osaka, Kyoto
98 ー(Non-consolidated subtotal)
Total

Mie Kotsu Group
Nara Kanko Bus

Offices

Business area

18

(Non-consolidated subtotal)

635 ー

2,683 ー

Total

1,893 ーEHIME KINTETSU TAXI

Scenic highway
Distance3
731.0 km41.8 km10

72.8 km

Kokudo Kyushi Ferry
Shima Marine Leisure
Total

Volume of cargo handled

Ise-Shima

Distance

Gozaisho Ropeway
Beppu Ropeway

1,305 m
2,161 m
1,816 m

Total

Cars

Sales of detached houses (cumulative)
Total

Company2

Craft beer halls
Supermarkets

2
36
2
40

2

Properties
Kinki region
Tokyo metropolitan area
Chubu area
Other
Total

17

433
205
134
33

55,09329,456
7,983
1,829

805

94,361

Kintetsu Group Integrated Report 2023

Properties
Office buildings
Commercial facilities
Under elevated tracks
Leased condos
Parking lots

14 56,000 m
70 293,000 m
48 48,000 m
1,448 71,000 m
11,000ー

Edogawa, Hyakuraku
Caffè Ciao Presso, Hakoyume
Hamanako, Kariya, Amagozen, Goseminami
Yamato Craft Beer Table
Kinsho, Harves
Irodori Mall

Rooms

Inns

Rooms

Hotels and inns

Rooms

6
3
2
1
2
14

2,080
416
669
118
382
3,665

4
2
ー
2
ー
8

1,659
235
ー
400
ー
2,294

2
1
ー
1
ー
4

40
165
ー
20
ー
225

1
ー
2
1
ー
4

17
ー
122
75
ー
214

13
6
4
5
2
30

3,796
816
791
613
382
6,398

Kinki region
Ise-Shima
Tokyo metropolitan area
Other

Theme parks, amusement parks, aquariums, cinemas

TravelPrivate travelGroup travel

29 outlets
ー74 branches
22 branches

KNT
Club Tourism

Members
Club Tourism members

Midosuji Grand Building, Kintetsu Ginza Chuo-dori Building

2

ABENO HARUKAS, Uehommachi YUFURA

2

Lon Mall Fuse, Miyakomichi

2

Laurel Tower Nagoya Sakae

Total

Inns

Over

2

Japanese inns

Rooms

Units managed

Main properties

Leased spaceTime’s Place, Meets Sweets

Other
Japanese inns

7 million
2.9 million

Approx.
Approx.

Main leased properties

Units

Goto-Chi, Seijo Ishii

Hotels1,000 facilities
KINTETSU-COMMUNITY Approx. 98,000 units
Kintetsu Facilities

Outsourced

KNT members

Condominiums for sale by region (cumulative total)

Other

FamilyMart

Rooms

Building/condominium management

25.64 million m 3.06 million m 28.69 million m
House and lot
14,003 units
2,918 units
16,921 units
Lot only
21,326 lots
3,885 lots
25,211 lots
2

Main outlets

Hands, Plugs Market, Seijo Ishii

Hotels

Total

Area

Outlets

Miyako Hotels & Resorts

Real Estate BusinessNot along line

Service areas (SA/PA)

10th
18th

Directly managed

Overseas

Along line

Kintetsu Department Store, Uehommachi YUFURA

Hotel and Leisure Business

Katsuragi Ropeway

46.2 km

Total

Food

1 TEU = 1 × 20’ container equivalent

Facility

20.9 km
9.0 km16.3 km

Nara Okuyama

Cargo-handling volume
world ranking

637,000 t
698,000 TEUs

13
58

Hotels / Japanese inns

Distance

Shigi-Ikoma

Restaurants

VolumeRopeway

Name

RetailTenants

Sea

1,242 ーBoats/ships

622
Lease cars 1,893

Main outlets

86
17
130
37
49
4
3
37
4

Convenience stores
2

Air

Other

Sanco Taxi

Business

322 warehouses, 2.11 million m

Rental cars

Outlets

RetailLogistics sites

Freight transport

134 Mie
118 Ehime
383 Gifu, Yamaguchi, etc.

Marine transportation

Vehicles1,258 ー(Consolidated subtotal)

Franchise business45 countries, 300 cities, 683 locations

Osaka

NARA KINTETSU TAXIBusiness

Global network

348
242 Nara
248 Aichi
420 Ishikawa, etc.

Kintetsu Taxi

Osaka, Nara

Nara Kotsu Bus Lines

VehiclesDepartment stores

Department stores, commercial facilities

Rent-a-car service (as of September 30, 2023)

Company

Messages fromTop Management

Yokkaichi Asunarou Railway

With credit function

KIPS credit card

Without credit function KIPS point card
KIPS ICOCA Card

Pat Kintetsu Ayameike Ekimae parking lot
Total

Facilities
Shima Spain Village
Parque España

Ikoma Sanjo Amusement Park
Osaka Aquarium Kaiyukan
Interactive Aquazoo, NIFREL
Abeno Apollo Cinema

Visitors annually

Area

34 ha
880,000
24 ha
350,000
27,000 m
2,060,000
7,000 m660,000
9 screens
860,000
2

2

Kintetsu Cable Network Subscribers

Kintetsu Group Card KIPS
Card type

Our Value Creation Story

Business area

395
755 Nara, Kyoto, Osaka, Wakayama
259 Yamaguchi, Shimane
32 Ishikawa, Toyama

Kintetsu Bus

Company

Yoro Railway

Our Value Creation Strategy

VehiclesRail lines

10 16.6 km
31 57.5 km
14 7.0 km
ー 8.6 km

Iga Railway

Taxi services

Company

Train cars

Initiatives for Materiality

Company

Corporate Governance501.1 km
Annual passenger transport 270.76 million km
Stations
286 stations
Passengers (annually)
501.39 million people
1.37 million people
Daily average
1,885 cars
Train cars Total
Limited express
461 carsStandard
1,416 cars
Cable
8 carsRail lines (total route-km)

Bus services(as of September 30, 2023)

Corporate Information

Railways (Kintetsu Railway)

Merchandise Sales Business

Members

Cable television590,000
810,000
300,000

Internet

350,000
240,000(Total of five group companies)

1,700,000
Kintetsu Group Integrated Report 2023

18

Kintetsu Group Sustainability Policy & Materiality (Priority Issues)

Kintetsu Group Sustainability Policy

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 with major group companies, outside expert opinions,societal viewpoints, and our management philosophy.

Identify priority issues

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

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

Materiality (Priority Issues for Sustainability)
Creating a lifestyle that anticipates changes in values
Energizing communities by enhancing the network

Value
creation

Enriching people and communities with travel
Contributing to the realization of a decarbonized
and recycling-oriented society

Fostering diverse human resources and supporting
their activities

In October 2023, the Kintetsu Group signed a statement of support for the UN Global Compact andbecame registered as a UNGC participating company. The Group supports the ten principles set out by the
UNGC relating to human rights, labor, the environment, and anti-corruption, and engages in sustainable
management.

█

Major group companies

CSR Manager Meeting

Status of External Evaluation, etc. (as of December 31, 2023)
Adoption of Indexes

External Evaluation

Major group companies· CSR promotion reps
(manager level)

Corporate Governance

Kintetsu Group Holdings Co., Ltd.

CSR Committee

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

Kintetsu Group companies· CSR promotion reps
· All employees

Kintetsu Group
companies

Key Topics Before the CSR Committee

September 8, 2022

March 13, 2023

October 16, 2023

• Kintetsu Group Integrated Report• Sustainability activities (Summary of• Status of achievement of KPIs for2022• Setting KPIs for materiality (priority

issues)• Environmental initiatives (TCFD

information disclosure, etc.)• Establishment of human rights basic
policy for the Kintetsu Group• Report on the activities of theHarassment Prevention Subcommittee• ESG evaluation of the Kintetsu Group19

Bolstering our governance and risk management

Sustainability Promotion Framework

To strengthen the relationship of trust we have built with allof our stakeholders—whether customers, regional communities,
shareholders, business partners, employees, or others—and toresolve societal issues and raise corporate value in the long term,
we have put in place a CSR Committee. The committee is chaired
by Kintetsu Group Holdings’ president, and comprises executive
officers from the company as well as CSR representatives frommajor group companies. The key topics it has recently examined
are listed below.

█

Businessfoundations

Signing of the United Nations Global Compact

Corporate Information

Kintetsu Group
Medium-Term Management Plan 2024

Ensuring safety and pursing peace of mind█

Kintetsu Group Integrated Report 2023

current fiscal year and priority issues fornext fiscal year)• Disclosure of sustainability information insecurities reports• Status of compliance with legal
regulations and corporate ethics• Risk management• Review of the Kintetsu Group
Environmental Targets• Understanding of Scope 3 CO2 emissions• Disclosure of TCFD information• ESG evaluation of the Kintetsu GroupOur Value Creation Strategy

Kintetsu Group
Sustainability Policy

█

STEP

Initiatives for Materiality

Kintetsu
Group
Management
Philosophy

Materiality (Priority Issues for Sustainability)—Identification Process

Messages fromTop Management█

Our Value Creation Story

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

S&P/JPX Carbon Efficient Index

materiality (priority issues)• Kintetsu Group Integrated Report 2023
• Signing of the United Nations Global

Compact• Bolstering our risk management• Status of achievement of the KintetsuGroup Environmental Targets• Review of the Kintetsu Group

Environmental Targets• Understanding of Scope 3 CO2 emissions• ESG evaluation of the Kintetsu Group

Morningstar Japan
ex-REIT Gender Diversity
Tilt Index

Health & Productivity Management Outstanding Organization
White 500

Kintetsu Group Integrated Report 2023

20

Materiality (Priority Issues for Sustainability)—Direction, Risks and Opportunities⨋

Value creation

⨋

⨋

⨋

⨋

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

⨋

⨋

⨋

⨋

⨋

⨋
⨋

Enriching people andcommunities with travel

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

⨋

⨋

⨋

Promoting a sustainable tourism
industry
Maintaining and growing the regional
economic baseProtection and preservation of culturaland natural heritage⨋⨋

Contributing to therealization of a decarbonized
and recycling-oriented
society

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

⨋⨋⨋As a corporate group that supports daily life with a focus on railroads,
we place the highest priority on ensuring safety, which is the foundationof our business, and providing peace of mind in every aspect of ourlives.

⨋⨋⨋⨋

Business foundations

⨋

⨋
⨋

⨋

Ensuring safety andpursuing peace of mind

Responding to climate change
Promoting sustainable resource usage,
production, and consumption
Environmentally friendly businessactivities

Preventing accidents
Responding to climate change-related
disasters
Deter malfunctioning of criticalinfrastructure
Prevention of infectious diseases
Quality and safety of products andservices

⨋

⨋

⨋

⨋

Bolstering our governanceand risk management

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

⨋⨋

Highly transparent management
Business activities in compliance withlaws and ethics

⨋

⨋

⨋

Fostering diverse humanresources and supporting
their activities

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

⨋

⨋
⨋
⨋
⨋

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

⨋

⨋

⨋

⨋

⨋

21

Kintetsu Group Integrated Report 2023

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

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

Large-scale calamities or
accidents
Outbreak of new infectious
diseases
Harm to reputation for quality
and safety

Deterioration of stakeholder
trust
Harm to corporate value due toserious legal and ethicalviolations, including in the
supply chain
Increasing sophistication of
stakeholder demands
Labor shortages, intensifying
competition for humanresources
Adequacy of working
environment
Mental and physical health of
employees
Protection of human rights,
including in the supply chain
Diversity and inclusivenessmeasuresResponding to technologicalinnovation, etc.

⨋

⨋

⨋
⨋

⨋

⨋

⨋

⨋

⨋

⨋

⨋

⨋

⨋

⨋

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

Developing businesses with low
environmental impact
Growing preferences forenvironmentally friendly services

Early business recovery byboosting resilience
Growing preference for services
that offer safety and peace ofmind

Increasing corporate value
through management personnel
diversification

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

Kintetsu Group Integrated Report 2023

Messages fromTop Management⨋

Responding to low birthrates, aging
society, and declining population
Growing awareness of sustainability
Promoting innovation and technicalprogress

Related SDGs

Our Value Creation Story

Energizing communities byenhancing the network

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

⨋Opportunities

Our Value Creation Strategy

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

Risks

Initiatives for Materiality

Creating a lifestyle that
anticipates changes invaluesRelated societal issues

Corporate GovernanceDirection to aim for

Corporate Information

Materiality(Priority Issues for Sustainability)

22

Major Initiatives and Key Performance Indicators (KPIs) for Priority Issues for Sustainability

Railways

Number of new general-purpose railcars that meet diverse
needs

Department
stores

E-commerce sales

Stores

Proportion of total sales of key health products

Real estate

Creation of resident and non-resident populations throughredevelopment of area around a station

Railways

Number of railway passengers

Department
storesNumber of commercial service facility complexes constructed
as part of community development

StoresNumber of mobile supermarkets in operation

Linkage with bicycles, maintenance of bus routes, demand-oriented
transport

pp. 53–54

Smartphone season tickets, digital tickets, credit card touch boarding

p. 54

Challenge of co-creation for peace of mind andricher lives

10th anniversary of the En-katsu Project, pre- and post-natal care hotels,
new services at stations

p. 55

Development of the Abeno and Tennoji Area

Urban development around ABENO HARUKAS

pp. 33–34

Promoting redevelopment of our operational area

Development around stations (Uehommachi, Saidaiji, Yokkaichi, etc.)

p. 56

Stronger cooperation with local authorities

Collaborative agreements with Nara Prefecture, Ikoma City, Yao City and
Higashisumiyoshi Ward in Osaka

pp. 57–58

Compact community development around major
stations

Development of condominiums around major stations, conversion of
department stores into town centers

p. 58

HotelsPromoting the revitalization of the Ise-Shima area

History of development, initiatives and revitalization

pp. 35–36

Railways

Campaigns in the Kintetsu area

Kintetsu Railway’s regional cooperation and discovery of tourism resourcesp. 59

Invigorating region through co-creation business

KNT-CT Holdings Group’s efforts to attract visitors and revitalize regional
tourismp. 60

Environmental Management System andKintetsu Group Environmental Targets

CO2 emissions reduction targets increased, overseas added to scope

pp. 61–62

Energy Use and CO2 Emissions

Scope 3 emissions coverage expanded, disclosure by category

pp. 63–65

Energy-Saving and CO2 Reduction Initiatives

Renewable energy, SAF, EV buses, taxis, etc.

pp. 66–68

Information Disclosure Related to TCFD

Climate change risks and opportunities organized, impact amounts
reviewed

pp. 69–72

Travel agency

Group

Contributing
to therealization of adecarbonized
and recyclingoriented
society

Resource-Saving, Recycling and Biodiversity
Conservation Initiatives

Plastic reduction, food waste reduction, forest maintenance

Ensuring safety Initiatives in the railway business (Kintetsu Railway) Safety assurance approach, safety management systems, disasterprevention and safety measuresand pursuingpeace of mind
Bolstering ourgovernanceand riskmanagement

Fostering
diverse humanresources andsupporting
their activities

Various safety-related initiatives

pp. 73–74
pp. 89–91

Safe driving workshops, barrier-free programs

p. 92

Corporate Governance

Board of Directors, skills matrix

pp. 99–103

Compliance

Legal and ethical compliance framework, legal and ethical consultation system p. 104

Risk Management

Enhancement of risk management

pp. 105–106

Supply Chain Management

Partnership Building Declaration, KWE Vendor Code of Conduct

p. 106

Human Resources Strategy

Valuing people and their diversity in group management

pp. 29–30

Human Capital

Fundamental policy on human resources (recruitment, development andenvironmental improvement)

pp. 76–77

Recruitment

Strengthening recruitment of diverse employees and of human resources
for DX

p. 78

Development

Competence development training and personnel development

pp. 79–80

Creating a Positive Work Environment

Environmental improvement, employee engagement

pp. 80–81

Health and Safety

Health & Productivity Management Declaration, common targets for healthmanagement (obesity rate, stress)

pp. 82–83

Human Rights

Fundamental policy on human rights, implementation and handling of
human rights due diligence

pp. 86–88

Target year

Target－－2025

80 in total

5.8 billion yen

4.3 billion yen

2024

Gradual expansion

0.3%

2.5%

2025

3%

－

－

2023 onMonitoring indicators

456 million

501 million

2025

517 million

－

2

2024

Gradual expansion

20 (cumulative)

22 (cumulative)2024

30 (cumulative)

Number of facilities with tie-ups with local companies

－

9

2023

14

Number of users of Ise-Shima limited express trains

Approx. 1.2 million

Approx. 2 million

2026

Number of inbound rail passengers

－

－

2026

Number of participants in universal tourism－

71,6882024

100,000

Number of programs to attract visitors to the region

10

11

2025

20

Number of visitors to the three prefectures in the Tohoku region

76,000222,000

2023

230,000

Energy use (compared to FY2015)-16.9％-14.3％

2030-20% or more

CO2 emissions (total) domestic (compared to FY2015)-38.2％-40.9％

2030

-50％

－

Base year

2030

-20％

Food wastage reduction rate (compared to FY2019)-26.9％-25.7％

2030-20％

Reduction rate of food loss volume (compared to FY2018)-26.5％-27.4％

2030-40％

Number of participants in eco-tourism

－

4,125

2024

10,000

Number of J-credit users

－

3,082

2024

6,000

0

0

Every fiscal year

0

CO2 emissions (total) domestic + international (compared to
FY2022)

Department
storesStores andrestaurants

FY2022
results

Pre-COVID level (approx.
2.65 million in FY2018)
Pre-COVID level (approx.
4.90 million in FY2018)

Travel agency

Railways

Number of accidents involving railway operations for which
the company was responsible
Number of accidents involving railway operations andtransportation disruptions

80

92

Every fiscal year

Fewer than the previous
fiscal year

33.3%

33.3%

2023

Maintain one third or higher

Highest rank

Highest rank

2025

Maintain the highest rank

Percentage of female employee hires to total number ofcareer-track hires
Percentage of mid-career hires to total number of careertrack hires
Number of employees hired as career-track IT-related
personnel
Hours per career-track employee of participation in skills
Kintetsu Group development training

－

17.4%

2025

30% or more

－

30.4%

Every fiscal year

20% or more－

6

Every fiscal year

5 or more－

21.9 hours

Every fiscal year

20.0 hours

Of those, hours of IT/DX training

Kintetsu Group Ratio of external directors
Holdings
Railways

Holdings

Major
companies

BCM rating (Development Bank of Japan)－

1.9 hours

Every fiscal year

3 hours

Employee turnover rate among all career-track employees at
the Company
Percentage of career-track employees at the Company
interviewed directly by the Human Resources Division
Section manager-level employees at the Company who havetaken training on how to manage their subordinates

－

2.0%

Every fiscal year

2.0% or less

－

25.7%

Every fiscal year

40% or more

－

74.5%

FY2023100%

See pp. 84-85

－

－

－

－

Messages fromTop Management

pp. 31–32

Maintaining and diversifying means oftransportation through co-creation
Promoting digitalization in railway and bus
passenger services

FY2021
results

Our Value Creation Story

Key Performance Indicators (KPIs)

Our Value Creation Strategy

Enrichingpeople andcommunities
with travel

Business
category

Initiatives for Materiality

Energizing
communities
by enhancing
the network

Creating new businesses and services through DX Building a customer database, improving operational efficiency

Pages

Corporate Governance

Creating alifestyle that
anticipateschanges invaluesMain details

Corporate Information

Title

Materiality

Comprehensive evaluation indicators
Kintetsu Group Maintaining and improving external ESG evaluation → See p. 20
Holdings

23

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

24

PART

Our Value Creation Strategy

The Kintetsu Group Medium-Term Management Plan
2024 is a four-year plan with the basic policy of reforming
management to support the post-pandemic recovery and drive
the shift toward new business development and growth. During
fiscal 2021-22, the first two years of the plan’s implementation,
the Kintetsu Group has been focused on reducing the breakeven point for each business in the Group, liquidating andsecuritizing assets, and expanding B-to-B businesses. Thesetasks have been undertaken by the entire Group as part ofan effort to engage in reform of our business structure aswell as our business structure portfolio. As a result, in fiscal
2022, operating revenue increased by 125.7% year-on-year
to 1,561.0 billion yen, and operating profit increased by 63.2
billion yen to 67.1 billion yen. These results were attributed tothe post-pandemic rebound in spending after a period of being
housebound and the conversion of Kintetsu World Express toa wholly-owned subsidiary in July 2022.
In fiscal 2023 and 2024, when the constraints on social andeconomic activities are expected to have dissipated to a large
extent, our priority initiatives will be as follows: to strengthen
our business risk tolerance by formulating and implementing
business structural reforms; to restore the financial soundness
that temporarily deteriorated due to the pandemic; and tosolidify our business foundation for future growth.
To achieve these goals, we revised our target management
indicators in June 2023. Specifically, we increased operating
income for fiscal 2024 from over 65 billion yen to more than
86 billion yen and reduced our net interest-bearing debtto-EBITDA ratio from 8 to around 7. These changes reflectrevisions to railway freight rates and the acquisition of Kintetsu
World Express as a subsidiary.
While fully acknowledging the shifting businessenvironment and the new society that has emerged in the postpandemic era, the “new Kintetsu Group” remains committed
to proactively developing businesses that will strengthen
profitability, help to resolve societal issues, and provide stable
returns to shareholders.

25

Kintetsu Group Integrated Report 2023

Financial strategy
In terms of our financial strategy, we are dedicated to apolicy of assured financial soundness. Moreover, we willcontinue to reduce interest-bearing debt while diversifying
risk through improved profitability by generating high cash
flow at Kintetsu World Express, seeking to recover demand ineach business to pre-pandemic levels, establishing a robust
business management structure, and shifting to an asset-lightmodel in our hotel business and other businesses.
We seek to reduce net interest-bearing—which rose
to 1,095.3 billion yen at the end of fiscal 2022 due to ouracquisition of Kintetsu World Express as a subsidiary—to lessthan 1,000 billion yen. We are also committed to increasing
our equity ratio from 18.2% to a minimum of 25%.

Capital investment policy
With regard to capital investments, we will carefully identify
and undertake the investments necessary for business
continuity and future-oriented growth strategies with anemphasis on investment efficiency, in line with future EBITDA
growth. We plan to invest a total of 220 billion yen over the four
years of our medium-term management plan. In our railway
business, we will secure funds through the fare revisions
undertaken in the spring of 2023, and we intend to makeinvestments to ensure our continuation as a form of sustainablesocial infrastructure. This will include a systematic upgrade to
new general rolling stock as well as our focus on maintaining
the soundness of equipment. We will also make investmentsthat will contribute to growth, such as digital strategies andrevitalization of the areas alongside our railway lines. In our realestate segment, we are planning well-balanced investmentsin the redevelopment of the areas around our stations and in
the outdoor experience-based facilities at Ise-Shima, which
will contribute to the revitalization of the railway line. We arealso making highly profitable investments elsewhere outside
our railways.

Ensuring financial soundness
Net interest-bearing debt

Capital Investment Plan (FY2021–FY2024)

Equity ratio (right axis)(billion yen)

1,200
1,000

(%)

1,023.1

1,095.3

1,070.0

40.0

1,000.0

800

25.0

25.0

400

0

15

30.0

600

200

35.0

Transportation
Real Estate
Hotel and Leisure
Other

19.7
Results
at end of
FY201818.2
Results
at end of
FY202221.0
Targets
for end of
FY202415.0

Targets forthe next planand beyond

30

20.0

10.0

25

¥220.0 billion
40

Merchandise Sales

Major investments

10

Total Capital
Expenditure

International Logistics

100· Introduction of new general railway vehicles(Railways)· Installation of platform doors (Railways)· Undertaking seismic reinforcement ofstructures (Railways)· Redeveloping station areas (Real Estate)· Hamajima Outdoor Experience Complex(Real Estate)· Renewing hotel facilities (Hotels)· Investing in IT (all companies)

Our Value Creation Story

Earning the trust of our stakeholders represents the very
foundation of the Group’s management. In light of the factthat Kinki Nippon Tourist, one of our group companies,
was involved in a compliance-related scandal related to the
overbilling of local governments as part of its contract work,and acknowledging that the Group’s business domains
and business areas have expanded and target risks havediversified due to the acquisition of Kintetsu World Express asa wholly-owned subsidiary, we are committed to minimizing
risks and reducing any related losses. We are therefore
strengthening the risk management system of the entire
Group as we reinforce our current management foundation.
In conclusion, we will continue to engage in various formsof collaboration with our multiple stakeholders (including
shareholders, customers, business partners, employees,
and public sectors) by actively disseminating informationin response to emerging needs. Through dialogue such as
this, we will continue to focus on improving our managementtransparency while contributing to the emergence of aprosperous society founded on co-creation.

Our Value Creation Strategy

Updated target indicators for our medium-term
management plan

Addressing our stakeholders

Initiatives for Materiality

Director, Senior Managing Executive Officer
Responsibilities: Corporate Strategy DivisionCorporate GovernanceTakashi Wakai

Under our medium-term management plan, we arepromoting the following six priority measures: ① Radicallyreviewing our cost structure; ② Early reduction of interestbearing debt; ③ Strengthening cooperation with external
partners; ④ Reforming our business portfolio; ⑤ Creating new
businesses and services through DX; and ⑥ Implementing
community development that aims to resolve regional issues.
Among these, items ①, ③, and ④ were achieved in fiscal
2021 and 2022, and we are currently in an expansion phasefor these items. With regard to item ②, we continue to focus
on the financial strategy described above. As for item ⑤, as
stated in a separate article, the officer in charge of the Digital
Transformation Management Office is working to establish
a digital customer base that will lead to demand generation
through data analysis and digitization of customer contact
points across the Group.
Item ⑥ is a measure on which we place particular emphasis
from the perspective of sustainable management. Revitalizing
the areas alongside our railway lines while providing solutions
to societal issues through business is also a source of theGroup’s sustainable growth. As we deepen cooperation withvarious stakeholders, including local governments, we will strive
to improve urban development and tourism attractivenessthrough co-creation with local communities. In addition, in thefall of 2023, we updated the Kintetsu Group’s environmental
targets, including raising the CO2 emissions reduction target
in fiscal 2030 from a minimum of 40% to 50% compared tofiscal 2015 levels. We will further engage in efforts to createcompact cities that contribute to energy efficiency andresource conservation centered on public transportation witha low environmental impact. As well, we will pursue energy
efficiency and CO2 reduction initiatives in our international
logistics business and other businesses, which we expect
will lead to the achievement of carbon neutrality by 2050. At
the same time, we have signed the United Nations Global
Compact (UNGC). We fully support the 10 principles related
to human rights, labor, the environment, and anti-corruption
established by the UNGC, and we intend to further promotesustainable management throughout the Group.

Corporate Information

Sustainable management andenhancing corporate value ina post-pandemic world

Our medium-term management plan:
Priority measures and a focus on sustainable
management

Messages fromTop Management

Management Strategy

Shareholder returns
Ensuring stable shareholder returns commensurate with performance while strengthening
our profitability and financial foundation

Kintetsu Group Integrated Report 2023

26

Kintetsu Group Medium-Term Management Plan 2024 Progress¥67.1 billion¥80.0 billion¥65.0 billion or more

¥86.0 billion or more

¥100.0 billion or more

¥1.0559 trillion¥1.2793 trillion―

Less than ¥1 trillion――

Net interestbearing debt

¥1.0231 trillion¥1.0953 trillion ¥1.0500 trillion― Less than ¥1.0700 trillion

Less than ¥1 trillion

Interest-bearing
debt/EBITDA ratio

8.8 times

10.2 times―

8–9 times――

8.5 times

8.7 times

7.3 times―

About 7.0 times

About 6.0 times

19.7%

18.2%

―

23% or more

21% or more

25% or more

FY2022

FY2023–FY2024

Pandemic period

Transitional period

Post-pandemic period

Equity ratio· Elimination of restrictions on socioeconomic activities· Continued recovery of the Japanese economy· Increased geopolitical risk from deterioration of the international situation· Rise in prices and long-term interest rates· Ongoing trend of yen depreciation/US dollar appreciation· Labor shortage

Concerns about theslowing pace of recovery
in the global economy

Consolidated
indicators【Main measures ①, ③, and ④】● Lowering the break-even point through reform of the cost structure● Reforming our business portfolio (expansion of B-to-B businesses andglobal businesses)
Transportation

International Logistics

Real Estate
Hotel and Leisure
Merchandise Sales

Incorporating the international logistics business
into our core businesses

Priority Initiatives【Main measures ①–④】
I. Strengthening our resilience to business risk by formulating andimplementing structural reforms of the business【Main measures ①, ②, and ③】
II. Restoring the financial soundness temporarily undermined by the
pandemic

ROE

9.6%

21.6%

About 10%

About 10%

ROA

3.5%

3.5%

About 3.5%

3.2% or more

Notes:· ROE (Return on Equity): Profit attributable to owners of parent ÷ equity · ROA (Return on Assets): Ordinary profit ÷ total assets

Trend in operating profit and loss
(billion yen)100

Operating profit (loss)

80¥67.7 billion

20¥3.8 billion① Radically reviewing ourcost structure② Early reduction ofinterest-bearing debt

-60

Incorporated the international logistics business(Kintetsu World Express) into the Group’s corebusiness through a TOB.

Formulated long-term digital transformation⑤ Creating new businesses
strategies and evaluated measures for establishingand services through DX a digital services platform.

27

Mostly achieved.
Committed to achieving
further results.

To develop a balanced business portfolio (integration
Mostly achieved.
within the Group, transformation of the corporate
culture, and strengthening of risk management)
Committed to achieving
through process management integration (PMI) at
further results.
Kintetsu World Express
To employ the digital services platform to develop
a group-wide customer database without delay

Will maintain focus.
(pp. 31–32)

To solve societal issues, improve appeal to tourists,⑥ Implementing community Strengthened collaborations with local communities
and promote regional revitalization and sustainable
and companies, mainly in the areas around railway
development that aims
regional development through co-creation withto resolve regional issues stations.
local communities in railside areas

Will maintain focus.
(pp. 33–34, 56–59)

Kintetsu Group Integrated Report 2023

FY2019¥80.0 billion¥86.0 billion or more

Kintetsu World Express
becomes a wholly-owned
subsidiary.

Post-pandemic era(adoption of new ways of life and work styles)of pandemic:
Scope of the Kintetsu Group
About -¥125.7 billion Medium-Term Management Plan 2024

FY2020

FY2021

FY2022

FY2023 (forecast)

FY2024 (target)

Next plan andbeyondProgress and future
developments

Achieved a lower break-even point throughstructural cost reductions accomplished
Mostly achieved.
To establish structural cost reductions and further
through structural reforms of the business.
Cost reductions achieved (comparison with pre- deepen business structural reforms implemented Committed to achieving
during the pandemic
pandemic period on a consolidated basis)
further results.
FY2021: About 60 billion yen
FY2022: About 49 billion yen
To continue adhering to the policy of ensuring
Significantly reduced interest-bearing debt
financial soundness and increasing equity for theWill maintain focus.
through asset sales and other measures.
next leap forward

Hotel business:③ Strengthening
Sold eight hotels to an SPC with Blackstone. In the hotel business, to promote two-pronged
ownership/direct management and outsourced
cooperation with external Real estate business:
Incorporated real estate holdings into an SPC management in collaboration with Blackstone
partners
with the Development Bank of Japan.

④ Reforming our businessportfolio- ¥62.1 billion
FY2018¥67.1 billion

Declarationof state of
emergency Financial impact

COVID-19
pandemicoutbreak-40

Future initiatives

Lowering the break-evenpoint through reform of
the cost structure

40
0

Past initiatives and achievements¥100.0 billion or more (target)¥49.3 billion

60

-20

Main measures

Updated plan

FY2022 results【Main measures ⑤ and ⑥】
III. Solidifying our business foundation through digital strategies for future
growth and revitalization of railside areas

2 Progress of Our Six Main Measures

Initial plan

FY2018 results

Recovery of inbound demand

Management reform in the post-pandemic period: Phase 2

Reflecting the increase in cash and deposits due to the acquisitionof Kintetsu World Express, we have adopted new target indicators
for “net interest-bearing debt” and “net interest-bearing debt/
EBITDA ratio” (which are calculated by adding lease obligations anddeducting cash and deposits).

Notes:· Interest-bearing debt: Borrowings + bonds payable· Net interest-bearing debt: Interest-bearing debt + lease obligations (excluding amountrecorded under IFRS 16) – cash and deposits· EBITDA: Operating profit + depreciation (excluding amount recorded under IFRS 16) +amortization of goodwill

4 Basic Initiatives for the Next Plan and Beyond
The Kintetsu Group’s Leap Forward: Aiming to Expand the Scope of Business and Increase Profitability
Measures and Course of Action to Implement
Expanding the business territory (Area portfolio)
Pursuing stable growth by expanding the business territory
beyond the railway line to the Tokyo Metropolitan Area andoutside Japan⨋ Expanding the scope of business (Business portfolio)
Expanding the scope of the business through M&A,
collaborating with external partners, and financing throughprivate funds⨋ Promoting the digital transformation
Establishing a new digitized customer base and developing
new businesses and services⨋

Developing our railside areas
Developing attractive railside areas and increasing thenumber of people who interact with each other and settle
along the railway line in the long term
⨋ Expanding revenue opportunities through major events
Expanding the Group’s revenue opportunities by leveraging
major events such as Expo 2025 Osaka, Kansai and theopening of the Osaka Integrated Resort⨋ Promoting human capital management
Ensuring the diverse workforce needed to maintain andexpand the business⨋ Strengthening sustainability initiatives
Seeking to address societal issues and increase corporate
value through our business activities⨋

Kintetsu Group Integrated Report 2023

Messages fromTop Management¥67.7 billion

Interest-bearing
debt

Our Value Creation Story

Operating profit

FY2021

Post-pandemic recovery measures: Phase 1

Priority Initiatives

FY2022 results

Our Value Creation Strategy

Monitoring the Business
Environment

Management reform for post-pandemic recovery, the development of new businesses andthe dramatic growth of the Kintetsu Group

Targets for the nextplan and beyond

FY2018 results

Net Interestbearing debt/
EBITDA ratio

Basic Policy

FY2024 targets
Initial plan
Updated plan

FY2023
forecast

Main measures

Initiatives for Materiality

Agenda of the Kintetsu Group Medium-Term Management Plan 2024

In June 2023, we updated the target indicators of the medium-term management plan to reflect the post-pandemic
recovery strategies of each of the Group’s businesses, railway fare revisions, the impact of the acquisition of
Kintetsu World Express on our consolidated financials, and the future direction of our business.

Corporate Governancethe Business Environment and Implementing the Priority Initiatives
1 Monitoringof the Management Plan

3 Updating Target Management Indicators

Corporate Information

We are implementing the Kintetsu Group Medium-Term Management Plan 2024, which was formulated in May
2021 and is grounded in our policy of adopting management reforms as part of our post-pandemic recovery andcommitment to growth and business development.
In the first two years of the plan leading up to fiscal 2022, we implemented firm measures targeting postpandemic recovery and posted positive results as a consequence. We have positioned the final two years of theplan, concluding in fiscal 2024, as the second phase of our management reform initiative in the post-pandemic
period. As part of this effort, we are focusing on strengthening our tolerance to business risk, restoring financial
soundness, and solidifying our business foundation. In June 2023, we updated our target management indicators.

28

Human Resources Strategy“To Support Daily Life, To Create More Value” is ourmanagement philosophy. As a corporate group, in striving togive physical form to this philosophy, we depend on people, ourmost valuable resource. In a constantly changing environment
in which our customers’ needs continue to diversify, the abilities
that our talented personnel deliver include understanding ourideals and envisioning the future, making proper assessments
and good decisions, leading change, and having a good
sense of others’ feelings and connecting with them. Above all,personal determination is crucial to realizing this purpose.
People with a diverse range of knowledge and experienceand unique personalities are essential to the Kintetsu Group.
We encourage high aspirations in steadfastly implementing
operations and working to create new value in the Group’s
wide range of businesses. That approach is how we aim
to embody our management philosophy and achievesustainable growth. To reach our goals, one of the priority
issues for sustainability that we have identified is “fostering
diverse human resources and supporting their activities.”
The basic human resource policy we have established aims
to hire and foster the development of individuals with drive,
ability, and character and create a positive work environmentthat allows them to flourish. Based on this two-pronged
policy, we are committed to enhancing our human capitalacross the entire Group.

Confronting the labor shortage—a major issue
Dealing with the current labor shortage is a criticalchallenge for the Group in the area of human capital. In
Japan as a whole, competition for human resources isintensifying. Fortunately, no company in the Group has faced
bankruptcy due to the labor shortage. Nevertheless, anongoing shortage exists, resulting from many people having
left the labor pool due to the COVID-19 pandemic, combined

29

Kintetsu Group Integrated Report 2023

with restrictions on recruitment. Some industries have been
unable to respond adequately to the recovering demand,and the inability to hire specialized personnel who areindispensable for the Group’s operations poses a significant
problem—such as digital talent, qualified personnel intechnical fields, and chefs.
Possible measures to address the labor shortage include
bolstering recruitment, preventing employee turnover, andreducing the number of personnel needed. Among these,
preventing turnover depends on the workplace culture
and many other factors, and cannot be resolved overnight.
When I joined Kintetsu Railway in 1984, the company had
approximately 9,400 employees in its railroad division, anumber that peaked at 10,400 or so around 1993. By theend of fiscal 2022, that number had dropped significantly
to around 6,600. This was the result of efforts to streamline
operations under the challenging conditions of increased
private vehicle ownership and a declining population along
our railway lines. Currently, we must not only confront thelabor shortage but also continue to aim to run operations
using fewer employees. The danger of having fewer people
in the workplace, however, is a weakening of bonds between
people, resulting in a decreased sense of belonging. My own
interactions with senior colleagues in the workplace gave mea sense that the company was a place where I belonged. I
also learned many things from my seniors. Although somepeople today, especially younger people, are reluctant tobuild such relationships, I believe it is very important for
preventing turnover to create a workplace environment
where people can work with peace of mind and rely oninterpersonal relationships. Our group companies strive toimprove working conditions, including compensation, andpursue measures to foster interaction and build trust amongcoworkers and between supervisors and their subordinates.
For example, starting this year, we began jointly sponsoring
events for employees and their families to gather andinteract, co-hosted by the labor union and health insurance

Employee breakdown by gender(consolidated)

Employee breakdown by company(consolidated)
Kintetsu Group Holdings

270

Female managers

1,162

Kintetsu Railway

6,764

Male

14,30431.8%

30,681
68.2%

KNT-CT
Holdings Group

3,734

Male managers

1,310

Messages fromTop Management
Our Value Creation Story

20s andunder

999

Consolidated
number of
employees

50s

19.2%

35.8%

44,985

30s

17.8%
40s

KWE Group(consolidated)

1,916

Kintetsu Retailing /Kinsho Store60s and over 5.1%

Kintetsu
Real Estate

12,830

Kintetsu Miyako
Hotels International

4,427

Ratio of employees by age(major companies)

Other

FemaleOur Value Creation Strategy

People and their ideas support
the foundations of Kintetsu Group

Initiatives for Materiality

Director, Managing Executive Officer
Responsibilities: Human Resources DivisionCorporate GovernanceNobu Hayashi

While I have been talking about the labor shortage up to
this point, it is important to mention that the Group maintains
a 45,000-strong workforce that is extremely diverse andtalented, working in a broad range of business domains andareas.
We consider the promotion of diversity to be a vital
component of our business development, as diversity brings
fresh views and new ideas, leading to the creation of newvalue. It also helps us to respond to the diversifying needs ofcustomers and offers mutual inspiration for personal growthamong colleagues coming from different cultures withdifferent ways of thinking. Considerable challenges remain
at an individual company level, such as the preponderanceof men holding management positions at Kintetsu Railway
and other major companies, but KPIs are being set withefforts directed at increasing the ratio of female managers atthese companies and addressing other issues.
Diversity in the Group’s human resources was also given
a big boost in the summer of 2022 with the acquisition of
Kintetsu World Express, which operates a global logistics
business. We will use this opportunity to secure even morediverse talent and facilitate further exchange within the Groupto leverage such a valuable asset—people—maximizing theirvalue and creating synergies for the entire Group.

22.1%

Corporate Information

Valuing people and their diversity
in group management

Promoting diversity

association. Kintetsu Railway has also resumed its systemof providing company subsidies for employee athletic meets
and workplace get-togethers, which had been suspended
during the pandemic.
Up to this point, group companies have been taking steps
individually to address the labor shortage based on their
specific circumstances. While individual company efforts
will remain central, to address this issue collaboratively
group-wide, several companies, including Kintetsu Group
Holdings, have joined together to establish a project teamto support individual company initiatives and study ways
to raise the standard for the Group as a whole. In 2017,
we launched Kintetsu Oshigoto Station (Oshigoto means“job” in Japanese) as a one-stop service that provides job
information and accepts applications for jobs in the Group.
It has achieved a certain level of success in recruiting parttime employees, mainly along the Kintetsu railway lines.
We will continue to take advantage of the Group’s scale toexpand our job advertising and recruiting events, tap into
more senior talent, including retirees from group companies,
and strengthen the recruitment of personnel from othercountries. We also recognize that some occupations in
the Group are having difficulty attracting workers becauseof the social perception that the jobs involve hard work at
low wages, diminishing their attractiveness. Yet, the Group’s
various businesses contribute significantly to society and thework is very rewarding. So, in addition to improving working
conditions, we feel it is necessary going forward to improve
the image of the work and communicate how the industry
and the Group involve rewarding work that helps to solve
issues in society.

18,472
Kintetsu Department Store

1,792

Note: FY2022 results

Kintetsu Group Integrated Report 2023

30

Strategies for the Digital Transformation

The Offensive Digital Transformation:
Strengthening competitivenessEstablishing a group-wide digital transformation management
systemStimulate demand for individual group companies and the Group
as a whole by integrating and utilizing the data and customer
contact points held by each group company.
• Utilize marketing that combines digital and concrete customer
contact points.
• Pursue customer uptake and revenue opportunities through theuse of Group data.

Establishing a Digital Transformation Management Officewithin the Kintetsu Group Holdings Company

Transformation

Formulate the Group’s digital vision.
Plan and promote group-wide digital transformation
measures.
● 
Support the digital transformation measures of groupcompanies.
● 
Coordinate measures and optimize investment for theentire Group.
● 
Hire and train personnel with digital expertise and assign
them to group companies.
●

31

Kintetsu Group Integrated Report 2023

Establishing a group-wide Customer Data Platform Through the Digital Services Platform
1 Overview and Direction of the Digital Services
PlatformPhase 1 (currently in effect): Strengthen intra-groupcollaboration.

Phase 3: Cooperate with other economic areas andadministrative services.

•
Introduce new customer contact points that interlink eachcompany’s apps and websites.
• Introduce mechanisms such as points/payment apps and ID
integration as a medium for mutual cooperation.
• Build a data analysis platform to aggregate and utilize data.
• Share customers of group companies as the Kintetsu Group andcross-sell to them.
• Deepen customer understanding and strengthen relationships
with one-to-one marketing.
• Utilize data as a means of developing new businesses and services.

• Plan for further expansion of the Kintetsu Economic Zone.
• Contribute solutions to regional issues as reflected by our customer
base.
The Concept of a Digital Services Platform

Partnercompanies

K

t
in

et

su

G

Phase 2: Collaborate with partner companies.

Healthcare

p
rou

es
rvic
se
sic
a
B

Dwellings

LeisureprovidersNursing
care/
med
ical
ser
vic
es

Nursing care

Medical treatment

Eating & drinking• E xpand services that the Kintetsu Group does not offer, responding
to a wide range of diverse lifestyle needs such as health/medicalcare, education, and child-rearing.

Shopping

Digital Services
Platform

Municipalities

G
Educational
institutions

Disaster preparedness

erviceslic s
pub① Establishing a digital services platform
Our objective is to integrate and unify the digital customer
contact points maintained by each group company, improvecustomer convenience, and utilize customer data to strengthen
relationships and stimulate demand. In the future, we aim tocollaborate with partner companies and government services
and use data to create a platform that responds to the various③ Utilize technology (data & AI).
④ Hire and train personnel withdigital expertise.
⑤ Strengthen cybersecurity
through collaboration.

t&
en
nm

Specific measures for implementation

3 Measures to Prioritize in the Future①E
 stablish a digital services
platform.
②S
 tandardize back-office
operations.

erov

The Kintetsu Group launched the Digital Transformation
Management Office in June 2023. This initiative was inspiredby the emerging challenges the Kintetsu Group has had tocontend with in Japan—including the declining population,
declining birthrate, and aging of the population—along withthe societal changes that emerged due to the COVID-19
pandemic. The Group is experiencing a serious impact fromthe population trends noted above, both in terms of decreased
demand and a decline in the working population. Moreover,changes in behavioral patterns arising from the COVID-19
pandemic require the Group, which has a portfolio focusedon “B-to-C” businesses primarily in the mobility segment, tobe adaptable to exigencies, which requires that we review
our portfolio. Working in collaboration with each company
in the Group, we have recognized the need to pursue twoparallel strategies: a “defensive digital transformation” aimed
at streamlining operations and improving productivity; and an“offensive digital transformation” to implement a growth strategy
that encompasses the needs to stimulate demand and develop
new businesses. To this end, we have established the Digital
Transformation Management Office. This office will support
each group company to proactively promote digitalization
and will promote the following five specific measures:① Establishing a digital services platform; ② Standardizing
back-office operations and systems; ③ Utilizing data as well as
AI and other technologies; ④ Hiring and training personnel withdigital expertise; and ⑤ Strengthening cybersecurity throughcollaboration.

lifestyle needs of those living along our railway lines.
② Standardizing back-office operations and systems
We will consider introducing a group-wide system for backoffice operations such as human resources, accounting, andadministrative affairs. In particular, when updating the Groupaccounting system that is currently in operation, we will not
simply update it, but will treat it as an opportunity to optimize
our operations as a Group.
③ Utilizing data as well as AI and other technologies
We are planning to establish a new team within ourcompany to acquire expertise in data usage and AI, conduct
research on new technologies, and implement demonstration
projects. We will also consider supporting the business
transformation (the development of new services andbusinesses) by collaborating with each group company.
④ Hiring and training personnel with digital expertiseand placing them at group companies
We are working to secure personnel with digital expertise
who can strategically lead the Group’s digital transformation
by hiring new graduates and appointing external personnel
with the aim of increasing the current number of personnel
by 50% over three years. Furthermore, we will continue toprovide training with the goal of ensuring that 10% to 20%
of our employees have the required skills to take on the roleof leading the way in solving workplace issues and utilizing
measures using digital technology. We plan to provide levelspecific training to improve the digital transformation literacy of
all employees while fostering a corporate culture that focuseson problem-solving through the digital transformation not onlyin terms of skills but also in terms of mindset.
⑤ Strengthening cybersecurity through collaboration
The cyber risks to which the Group is exposed areincreasing year by year, and further attacks are expected in
the run-up to Expo 2025 Osaka, Kansai. The Group, which is
responsible for operating many social infrastructure elements,
is required to take steps to improve its level of information
security in the Group without being bound by conventional
wisdom in order to reduce the impact on customers andensure stable business continuity. We feel that this is ourcurrent reality and we will continue to promote this initiative.

Concentrate the labor force on core businesses by introducing
technology suitable for each group company based on consistency
with individual business characteristics and business strategies.
• Achieve automation and operational efficiency using AI, robots,and sensing technologies.
• Strengthen information-sharing and improve the efficiency ofback-office operations by expanding the digital infrastructure.

Mobil
e se
rvic
es

Background and purpose to ourimplementation system

Buses & taxis

Certification

Railways

Education

2 Current Level of Progress and Future Plans① Data analysis platform
Collect and analyze data within the Group in
preparation for the start of operations in spring2024.
② ID and data integration
Develop a common ID that links customers of eachgroup company.
This will be available from the digital ticket site in the
Ise-Shima area in spring 2024
③ Digitization of customer contact points
The KIPS app, a common point service for customers,
is scheduled to be released in summer 2024.

Digital Services Platform

Kintetsu app

Miyako Plus app

Kinsho Storeapp

Kintetsu
Department
Store app

Our Value Creation Strategy

The Defensive Digital Transformation:
Improving operational efficiency and productivity

Our Value Creation Story●

Initiatives for Materiality

Senior Officer
Digital Transformation Management Office

2 Establishing a System to Promote the Digital

TransformationNew
customer
contact
pointslinking
services③②①

ID and data integration

Group-wide
data analysis platform

Cross-selling within the Group
Provision of common functions

KIPS
app

KIPS points
KIPS credits
Coupon offers

Corporate Governance

Hideo Fujii

1 Establishing Group Measures Targeting the Digital

Corporate Information

Effecting a transformation throughdigitalization and an eagerness tomeet new challenges

Messages fromTop Management

Management Reform Utilizing Digital Technologies: The Kintetsu Group’s Stance Toward the Digital
Transformation

One-to-one marketing

New businesses and services

Improved profitability of
the Group as a whole

Creating new value

Kintetsu Group Integrated Report 2023

32

Feature
Materiality(Priority Issues for
Sustainability)

Impact of ABENO HARUKAS
and modern art styles. These functions have raised the valueof the area, and also continued to draw many customers. The
Osaka Marriott Miyako Hotel, which is in the upper part of ABENOHARUKAS, has received great praise as a hotel in the sky with afantastic panoramic view, and has cemented its position as one of
Osaka luxury hotels, with its business doing well. The office floors,which boast a total floor space of more than 60,000 m2, havebeen lauded for the convenience of its transport connections, andhigh degree of recognition and functionality. Since its opening, it
has maintained a high occupancy rate with almost full capacity
throughout. At Kintetsu Department Store Main Store Abeno
Harukas, meanwhile, we have taken advantage of its approximate
100,000 m2 of floor space, which makes it one of the largest inJapan, to gradually evolve inspired by the concept of a town-likespace where encounters with things, experiences, and people
abound, to make it more attractive and to appeal to wide range oftarget demographics as a store that fuses department store andcommunity functions where people want to spend time.
After the outbreak of COVID-19, areas of the facility other thanthe offices saw reduced footfall, but these are now recovering
and we are seeing ABENO HARUKAS flourish with even more
visitors than before the pandemic.

33

Kintetsu Group Integrated Report 2023

ABENO HARUKAS celebrates its
10th anniversary on March 7
History of
ABENO HARUKAS

OpenedTen-Shiba i:nain the area by
the entrance
gates to Tennoji
Zoo

Opened Ten-Shibain Tennoji Park

2014.32015

2018

Grand Opening of ABENO HARUKAS

10th anniversary of
ABENO HARUKAS

2019

Opened Edge the Harukas in
the HARUKAS 300 observatory

2023

2024.3

Launched Virtual ABENO HARUKAS
Established the soranosu multipurpose space● Undertook the first major renovations to Kintetsu Department
Store Main Store Abeno Harukas since it opened●●

Business development in the Abeno/Tennoji area

Ten-Shiba

ABENO HARUKAS’ links to the community
Since the preparatory stages for ABENO HARUKAS, wehave valued feedback from those living and working in the area.
Even as early as the planning stage, Kintetsu Railway, Kintetsu
Department Store, and other companies cooperated with local
merchant associations and residents’ neighborhood associations
to ensure the ABENO HARUKAS and neighboring town could
grow together.
Kintetsu Department Store has created stores that contributeto local communities and that have earned an indispensable
place in the minds of local people. A good example of this is

A Brighter Place to Be

the En-katsu Project (see p. 55) which we have been runningsince Kintetsu Department Store Main Store Abeno Harukas
opened and which develops various citizen activity programs.
The Welcoming Abeno & Tennoji Campaign has also been
going for more than ten years. This is jointly organized bycompanies operating commercial facilities in the area—Kintetsu
Real Estate, Tokyu Land, and JR West. Through the campaign’smusic and town walking events, we have been collaborating tohelp people rediscover the appeal of the location and further
invigorate the area.

O sa kaTe nn oj M et roi St at ionUnlike the working center of the city of Osaka in the northand the socializing center in the south, the Abeno and Tennoji
area where ABENO HARUKAS is located has long had the airof a center of everyday life where traditional culture lives andbreathes. To turn the area into a third city center, which also acts
as the entranceway to the area to the south of the prefecture
and beyond, we constructed this landmark, at that time Japan’stallest complex with a large-scale department store, offices, aworld-class hotel, art museum, observatory, and train station.
Moreover, we renewed the Tennoji Park area into Ten-Shiba with
its extensive lawns. The same period saw a large shopping mall
open across the road and infrastructure put in place throughout
the area. These efforts raised the area’s appeal and improved
accessibility, transforming it into somewhere all kinds of people—
business people, young people, families, overseas visitors, andother besides—could interact.
ABENO HARUKAS attracts around 40 million visitors eachyear, while Ten-Shiba sees more than 5 million.
HARUKAS 300, the uppermost part of ABENO HARUKAS thatacts as an observatory, offers stunning, unimpeded 360° views of
the surrounding area and a variety of events, while the complex’s
art museum (an urban art gallery without its own collection) puts
on a wide range of exhibitions of Japanese, Oriental, western

ABENO HARUKASHARUKAS 300(Observatory)

JR Te

Abeno Lucias

nnoji

Os
Tennaka MetrojioOsaka Station-Ab

Stationenobashi

Apollo Building
Abeno Apollo Cinema

Osaka Marriott
Miyako Hotel

Stati

on

Offices
Miyako City
Osaka Tennoji

Hoop
ABENO HARUKAS● HARUKAS 300 (Observatory)

Abeno and● Osaka Marriott Miyako Hotel● ABENO HARUKAS Art

Museum● Kintetsu Department StoreABENO HARUKASArt Museum
Kintetsu Department Store
Main Store Abeno Harukas

Overview of ABENO HARUKAS
60 floors above ground, 5 floors underground

Messages fromTop Management
Our Value Creation Story

efforts to strengthen our luxuries zone; developing multiple floorsthat make use of “scrambled merchandising” to mix clothing,
lifestyle-related miscellanea, and food; opening the first official
store for Expo 2025 Osaka, Kansai; and introducing new-stylerestaurants to Harukas Dining.
Furthermore, with 2024 as the facility’s 10th anniversary year,
we will develop a variety of events and services that bring theKintetsu Group together under the theme of “A Brighter Place toBe.” Moreover, in 2025 our goal will be to work with Expo 2025
Osaka, Kansai to attract visitors, and to encourage further use
by overseas visitors by making the most of our advantageousaccess links to and from Kansai International Airport.
We at the Kintetsu Group will continue to strengthen our ties
with the local community and with local facilities and companies
as we strengthen the Abeno and Tennoji area’s branding, andfocus our energies on further developing the area as a core partof Osaka that can be enjoyed by people who gather here from allover the world, and gain the affection of those who live in the area
and those from further afield.

Our Value Creation Strategy

ABENO HARUKAS opened in 2014 as a high-rise complex measuring 300 meters tall. On March 7, 2024, the facility will markten years since its grand opening.
Centered on ABENO HARUKAS, several companies from the Kintetsu Group have worked together, and through multiple,
varied initiatives with the people of the local community, we have helped to make the Abeno and Tennoji area more prosperous
and to transform it into an urban area that all can enjoy.
While the facility has passed on its crown as Japan’s tallest complex to Azabudai Hills, which opened in the Toranomon
district of Tokyo in November 2023, it remains an important Osaka landmark and contributes to the Abeno and Tennoji area,
but also to Osaka and the Kansai region.

With the aim of further improving our ability to attract
customers and communication capabilities, we have been rollingout Virtual ABENO HARUKAS through the metaverse since
March 2023, and our group companies cooperate each other for
urban development that fuses the real and the virtual. In July of
the same year, we opened soranosu, a new facility, on the same
floor (the 17th) as the entrance to the office floors. The soranosu
caters to needs for diversifying ways of working and acts as aplace to realize freedom in terms of working styles and as a venue
for exchanges among those who work at ABENO HARUKAS andthose who live locally.
At Kintetsu Department Store Main Store Abeno Harukas, in
2023 we carried out the first major renewal work since it opened.
We continue to work on appealing store development with theintention of making it a lifestyle landmark that can be enjoyed dayin, day out by customers who come from a very wide area—insideand outside Japan—and people living in our operational area or
its surrounds. We continue to work nonstop to evolve the store,
including by introducing new, special brands and through other

Initiatives for Materiality

ABENO HARUKAS 10th Anniversary: Efforts to Develop Abeno/Tennoji,
Osaka, and Kansai

10th anniversary and efforts for the future

Corporate Governance

Development of the Abeno
and Tennoji Area

Corporate Information

Energizing
communities byenhancing the
network

Total floor space: 306,000 m2(Tower building: 212,000 m2)
Department store: 167,000 m2(Tower building: 83,000 m2)
Offices:

62,000 m2

Hotel:

32,000 m2 (360 rooms)

Initial investment: approx. ¥130 billion(consolidated basis)

Ten-Shiba

Main Store Abeno Harukas

Kintetsu Group Integrated Report 2023

34

Feature

Sancoinn
Iseshi-Ekimae andSancoinn Iseshi-EkimaeAnnex GrandeMateriality(Priority Issues for
Sustainability)

Mie Pref.

Promoting the Revitalizationof the Ise-Shima Area

UjiyamadaIsuzugawa

Toba Seaside
Hotel

Toba

Ise Jingu Ise-Shima(Naiku)SkylineIse-Shima National ParkIse Jingu (courtesy of Jingu Administration Office)Kashikojima España Cruise

Miyako Resort
Okushima Aqua Forest

Kashikojima Hojoen

The beginnings of Ise-Shima development

Initiatives of Our Group Companies

The Kintetsu Group’s involvement with Ise-Shima dates back to 1929 when the Shima Electric
Railway (now the Shima Line) was built to transport cultivated pearls and related cargo. The railway ran
from the former Shinjuko Station (one station away from Kashikojima Station today) to Toba Station.
Sangu Kyuko Electric Railway was launched in 1931, starting direct service between Uehommachi and
Ujiyamada. This became the Kintetsu Yamada Line, which continues to provide transportation to Ise
Jingu shrine to the present day. Ise-Shima National Park was established as Japan’s first national park
after the war in 1946, and Shima Kanko Hotel was opened on Kashikojima in 1951.

Kintetsu Railway offers a “cycling train” that allows passengers to bring their bicycles directly onto the train, and through a collaboration
between Kintetsu Railway and Kintetsu Department Store, fresh fish for sale at the department store is transported from Ise and Matsusaka
to Osaka on a train with a chassis decorated as a guide to the fish of Ise-Shima. In accommodation, Kashikojima Hojoen offers a Japanesestyle floor, Suikei, with special rooms that provide an elegant, relaxing space designed using traditional Japanese sensibilities. In front ofIseshi Station, Sancoinn Iseshi-Ekimae Annex Grande newly opened under Sancoinn’s premium brand, Grande.
In 2024, as Shima Spain Village celebrates its 30th anniversary, the Kintetsu Group continues to engage in initiatives to increase theattractiveness of the Ise-Shima area and draw visitors, including holding various events and working with Kintetsu Real Estate to open an
outdoor experience complex.

Shima Kanko Hotel The ClubThe development and expansion of an express train network
In 1964, with the opening of the Tokaido Shinkansen, efforts were made to entice Shinkansen riders
to visit Ise-Shima. At the same time, an expanded express train network began to offer direct express
trains from Osaka, Kyoto, and Nagoya, increasing the convenience of travel to the area. Timed for the
hosting of the 1970 Japan World Exposition in Osaka, direct service from Osaka, Kyoto, and Nagoya
to Kashikojima was established, positioning the island as “the Expo’s second venue,” coinciding withresort development in the area, which included the expansion of the Shima Kanko Hotel and the openingof Shima Marineland.

Revitalizing the Ise-Shima Area
Ise-Shima is the most important tourist destination for the Group, home to many businesses and facilities, so to focus resources on theregion’s revitalization, an Ise-Shima Office was established in the Business Strategy Division of Kintetsu Group Holdings on June 27, 2023,
followed by the establishment of Kintetsu Leisure Create Co., Ltd., an intermediate holding company for the leisure business on July 1.
Poster for the opening of the Toba–Shima LineThe ritual rebuilding of the Ise Jingu shrine and the Kintetsu Group’s
development of Ise-Shima
Since ancient times, the Ise Jingu shrine has been rebuilt every 20 years in a process known as
Shikinen Sengu. In recent times, the Group has developed and invested in Ise-Shima to coincide with thegenerational rebuilding. In 1994, a year after the 61st Shikinen Sengu, Shima Spain Village theme park
opened and the Ise-Shima Liner train went into operation. Kashikojima Hojoen opened in 1995, making
Ise-Shima a year-round resort destination. Then, in 2013, for the 62nd Shikinen Sengu, the Shimakazesightseeing limited express train went into service, where the ride itself is the attraction. The train has
been quite popular.

The aims of business restructuring
In the current climate for tourism and leisure, inbound demand is expected to recover in a post-pandemic phase, while competition
between tourist destinations may intensify in the run-up to big international events such as Expo 2025 Osaka, Kansai. We will work withlocal communities and collaborate in leisure and other areas to strengthen group businesses, thereby helping to improve the attractivenessof the region overall and build its brand strength.

Future initiatives in the Ise-Shima area
Shimakaze, sightseeing limited express

Hosting the Summit

Our Ise-Shima Office and Kintetsu Leisure Create are working together, not only within the Kintetsu Group but in collaboration with local
governments and businesses to improve the name recognition of the Ise-Shima area, build its brand, and draw more visitors. In preparation
for the Osaka Expo coming up in 2025 and the 63rd Shikinen Sengu in 2033, we want to increase the destination allure of the Ise-Shimaarea, so the Kintetsu Group is formulating a consistent vision for the Ise-Shima area. In addition, to attract more visitors from Tokyo andinbound tourists from overseas, we will produce more information along with other measures to promote the Ise-Shima area as a whole.

The G7 Ise-Shima Summit was held on Kashikojima in 2016 and the G7 Transport Ministers’ Meeting
was held in 2023, and in preparation we performed many renovations, including on Kashikojima Station,
Shima Kanko Hotel, and Kashikojima Hojoen. The G7 summit brought the name of Ise-Shima to theworld’s attention, which will lead to attracting future conferences and the like and attract inbound visitors.
G7 Ise-Shima Summit (courtesy of the
Ministry of Foreign Affairs)

Relatedevents

Kintetsu’s
development
history

1946

Ise-Shima National Park
designation

59th Shikinen Sengu(shrine rebuilding)

1964

Tokaido Shinkansen bullet
train begins service

1970

Japan World Exposition(Osaka)1973

60th Shikinen Sengu● Railways ● Accommodation ● Leisure

1993

1929

1959

1969

1970

1971

1987

● Dolphin Island Marine● Shima Kanko Hotel is● Ujiyamada–Toba line

● Toba Seaside Hotel● Kintetsu Hamajima

Amusement Park (nowDolphin Island) opens● Kintetsu Kashikojima● Direct express train

opens between Toba Stationand Shinjuko Station

1951

1964

● The Shima Kanko Hotel opens● New Kashikojima-so

1952

Kintetsu Group Integrated Report 2023

Villa opens● Ise-Shima Skyline

toll road opens

expanded

Country Club opens

1970● Shima Marineland

opens

opens
service begins between
Osaka, Kyoto, Nagoya
and Kashikojima● Shima line improvement
work

opens

1973
● 3rd Kashikojima-so

Villa (now Kashikojima
Hojoen, Sanyou
building) opens

2013

61st Shikinen Sengu● Shima Electric Railway● Kashikojima-so Villa opens

35

1953

Our Value Creation Story

The Group has been expanding its business while developing the areas along its rail lines. The Ise-Shima region is a primeexample. This feature section looks at the Kintetsu Group’s development of Ise-Shima over the years leading to the present day.

Kashikojima

Our Value Creation Strategy

The Kintetsu Group and Ise-Shima

Shima Kanko Hotel The Classic
Shima Kanko Hotel The Bay Suites
Miyako Resort Shima Bayside Terrace
Kashikojima Hojoen
Kintetsu Kashikojima Country Club
Kashikojima España Cruise

Initiatives for Materiality

Outdoor experience complex(scheduled to open)

Messages fromTop Management

Shima Spain Village
Hotel Shima Spain Mura
Ugata

Corporate Governance

Shima Kanko Hotel The Classic

Corporate Information

Enriching people
and communities
through travel

Ise Jingu(Geku)

Toba Bay Cruise &Dolphin Island

IseshiCountry Club opens

1992● Prime Resort

Kashikojima opens

62nd Shikinen Sengu

1994● Ise-Shima Linertrain service begins● Shima Spain Village

theme park opens

1995● Kashikojima Hojoen opens● Kayou building is added

1995● Kashikojima España

Cruise on the Esperança
begins service

2007● Hotel Kintetsu Aquavilla

Ise Shima opens

2016

G7 Ise-Shima Summit

2008

2023

G7 Transport Ministers’ Meeting in Ise-Shima,
Mie

2019

● Shima Kanko Hotel The Bay Suites opens● Prime Resort Kashikojima renamed Miyako

2013● Hotel Kintetsu Aquavilla Ise Shima renamed

2015

2024

● Renamed Shima Kanko Hotel The Classic● Shimakaze train service begins● Shima Kanko Hotel and Kashikojima

Station are renovatedResort Shima Bayside Terrace

Miyako Resort Okushima Aqua Forest● Hamajima Outdoor Experience Complex to

open

Kintetsu Group Integrated Report 2023

36

Non-Financial Highlights

Operating revenue

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

67.1

67.7

1,000

5.5

4.3

20

691.5

697.2

0

2018

2019

2020

2021

2022

(FY)

Ratio of net interest-bearing debt to EBITDA(Billionsof yen)Net interest-bearing debt

2019

2020

2021

2022

(Times)20

18.4(Billionsof yen)100

Profit (loss) attributableto owners of parent

1,023.1

1,042.7

1,141.3
1,015.5

800

8.5

15

1,095.3

ROE (right axis)

10

8.7

10.0

40
20

400

5

12.2

2018

2019

2020

2021

2022

(FY)

0

0

15
10

42.7

20.5
-17.3

-60
0

88.7

9.6
5.4

2019

2020

(Billionsof yen)Total assets

2021

2022

2,424.7

2,500
2,000

1,936.4

1,500

3.5

1,891.3

1,955.0

1,895.7

4

3.5

2.5

2
1

40

0

0

20

-2

-2.2
2018

2019

2020

2021

2022

(FY)

Part-time Director

2022

33.3

30

4

4

7

7

8

8

2018

2019

2020

2021

10

0

2020

2021

2022

30,491

30,343

2018

2019

2020

26,60520,000

12

12

4
1
7
2022

10

(FY)

0

10,000
0

2021

2022

(FY)

Number of female managers and female manager ratio

Number of female employees(%)

Female employee ratio (right axis)

80

14,30443.0

12,44744.9

11,50044.0

60

10,671

0

2019

2020

43.0

Major companies*2

2021

(%)

Number of female managers

25

Female manager ratio (right axis)

20.8

1,200

20

1,162
900

31.8

600
20

2018

1,500

15

40

5,000

(FY)

30,506

Number of female employees and female employee ratio

10,0002022

44,98540,000*Denotes the number of full-time employees and does not include temporary employees.

11,4882021(FY)*At the conclusion of general meeting of shareholders of each fiscal year

55.2
38.2

2019

20

20

12

(FY)

2018

50,00030,00015,000

2020

458

(%)

23.1

13
3
3

68.9

2019

479

33.3

28.6

30

78.2

2018

487

Number of employees (consolidated)

40

33.3

0

(FY)

External Director

4
3

26.5

0

2021

External Director ratio (right axis)

20,000

60

500

2020

14

100
80

2019

Full-time Director
40(Billionsof yen)

3

1.6

1,000

(%)
5

2018

0

Capital expenditures

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

200

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

Total assets and ordinary profit to total assets (%)

555

600

100

-20

-60.1
2018

310

400

20

35.9

646

320

200

0

(%)
25

21.6

60

800

326

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

80
1,200

355

300

(FY)

Profit (loss) attributable to owners of parent and ROE

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

1,600

-10

-62.1
2018

360

0

-8.9

-60

400

1,000

2

3.8

0.6

0

500

4

4.1

(1,000 t-CO2)

2022

(FY)

0

300
0

Consolidated

7.8

8.3

8.8

8.5

121

129

136

130

2018

2019

2020

2021

Major companies*2

10
5

2022

(FY)

0

Consolidated(regular employees + contract employees + part-timers) (regular employees +contract employees)

Cash flows(Billionsof yen)150

Shareholder returns
Free cash flows

Cash flows from operating activities

Cash flows from investing activities

102.3
58.2
50

44.2

-25.4
-46.0

-50

37

-64.1

-57.4

-71.4

2018

2019

2020

Kintetsu Group Integrated Report 2023

50.0

50.0

20.0

60

50.0

50
40

30.0

-41.8

(%)

Dividend payout ratio(%) (right axis)

46.2

40.0

0.8

0

-100

50.0

92.1

57.5

38.1

Annual dividend per share

60.0

133.9
101.8

100

(JPY)

Our Value Creation Story

40

6

49.3

(Crude oil equivalent
1,000 kl)500

Our Value Creation Strategy

60

1,194.2(%)
8

Initiatives for Materiality

1,236.9

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

Corporate Governance

1,561.0
1,500

Operating profit (loss)

CO2 emissions (Scope 1 + 2) (companies subject to periodic
reporting pursuant to the Energy Conservation Act*1)*1	For fiscal 2021 and before, 12 companies: Kintetsu Railway, Kintetsu Bus, Nara Kotsu Bus Lines, Bocho Bus, Kintetsu Taxi, Kintetsu Real Estate,
Kintetsu Department Store, Kintetsu Retailing, Kinsho Store, Kintetsu Miyako Hotels International, Kin-Ei, and Osaka Aquarium Kaiyukan
For fiscal 2022, 14 companies including the aforementioned 12 companies plus 2 companies: Kintetsu World Express and Kintetsu Logistics
Systems.

Corporate Information

80

2,000

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

Messages fromTop Management

Financial Highlights*2	Kintetsu Group Holdings, Kintetsu Railway, Kintetsu Real Estate, Kintetsu Department Store, Kintetsu Retailing, Kinsho Store,
Kintetsu Miyako Hotels International, and major companies of KNT-CT Holdings Group

30

25.0
26.4

20

11.1
10.7

10.0

10

0
2021

2022

(FY)

0.0

2018

2019

2020

2021

2022

(FY)

0

Kintetsu Group Integrated Report 2023

38

Transportation Business

12.3%
8.7%

Kintetsu Railway Co., Ltd.

191.7 billion

Operatingrevenue ¥13.0 billion

Operatingprofit (loss) ¥Kintetsu Railway Co., Ltd.

135.7 billion Operating
profit (loss) ¥11.3 billion

Operatingrevenue ¥Consolidated operating
revenue breakdown

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

Business Overview

Management Resources

We possess a total of 501.1 kilometers of track, connecting major
cities and tourist destinations across the Kinki and Tokai regions’ fiveprefectures (Osaka, Kyoto, Nara, Mie, and Aichi), which is used bymore than 500 million passengers each year. Through our business,
we are helping support our customers’ movement, from commuting
workers and students in major and regional cities, to long-distancetransport between Osaka and Nagoya on the Hinotori or Urban Liners
services, and tourism transport to Nara-Yamatoji and Ise-Shima or
similar on the AONIYOSHI, Blue Symphony, Shimakaze, and IseShima Liner services.

■	An

operational area that boasts diversity and varied appeal(high-rise buildings, shopping facilities, and art museums in city
centers; tourist destinations such as five UNESCO World Heritage
sites, and two national parks; and amusement parks and resorts,
including Shima Spain Village)■	A n extensive limited express network■	High levels of trust due to many years of providing safe, comfortabletransportation services■	Highly specialist personnel and expertise in supporting trip andinteraction in the area

Business Environment
The population in the Kintetsu operational area has been
shrinking due to low birthrates and the aging society, and in
addition, the effects of the COVID-19 pandemic have had asignificant impact on us. Despite this, fiscal 2022 saw the startof an easing of restrictions on movement and behavior andsupport for travel within Japan, and we returned to profitability
for the first time in three years.
However, due to behavioral changes resulting from the
COVID-19 pandemic, teleworking and online meetings havetaken root. It seems that business use for commuting or work
trips is unlikely to return to pre-pandemic levels.
On the other hand, demand for the kind of real-life, visceralexperiences that cannot be duplicated in the virtual world is
growing, and demand for tourism and days out is predicted torise. We recognize that as a company with so many highlights

For us to fulfill our missions as a public transportation
provider as we go into the future, we must create an
operational area full of appeal so that people want to live here.
In line with this belief, we have determined our future ideal.
In April 2023, in order for us to continue offering the safe
and comfortable transportation we have always provided toour customers, we made changes to our fares. Our forecasts
suggest this will results in a total increase in revenue of 47
billion yen over the three years to fiscal 2025. We plan to use
this increase as the basis for roughly 86 billion yen of capital
investments over three years.
Making sure our future ideal becomes a reality is predicatedon our ability to offer safe transportation, the foundation of ourrailway business. We will move to expand our business by
ensuring that customer safety—our highest priority—keeps
up with technological advancements and changes in theenvironment and that we provide comfortable transportation
services.
In terms of securing safety, as well as working on
maintaining the soundness of our infrastructure and on safety/
disaster-preparedness measures, to make sure that we offer
customers comfortable services, we will promote actions
such as updating our commuter trains and improving andrenovating toilets and other station facilities.
Another factor that is an important part of our efforts tobring about our future ideal is energizing our operational
area. Therefore, we will work with the other companies of theKintetsu Group, and cooperate with local governments, tohelp the area flourish based around our stations.

Sustainable infrastructure that offers safety andpeace of mind
For safe operations, as well as our efforts to create
infrastructure that is resilient to disasters (such as strengthening
line embankments or implementing
heavy rainfall countermeasures forriver bridge piers), we will move ahead
with measures to ensure passengers
can use our services with peace ofmind, including through installing
movable platform edge gates andfitting security cameras inside trains. Line embankment strengthening●

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

Providing safe,
comfortable
services

Human
resources
utilization andtraining

Sustainable infrastructurethat offers safety and peace of mind

Rationalizedbusiness
operations

Implementing
ESG-focusedmanagement

Providing comfortable services

Our goal is to provide the varied people that use our transportation with
comfortable, easy-to-use services, and to that end we are carrying out
efforts to improve a variety of services, including making stations and trains
more accessible, beautifying stations (improving toilets, etc.), introducing
sharing services for baby strollers, and creating private rooms for baby care.

Growth strategies●

Development andexpansion of new
businesses

Introduction of
new technologies

Initiatives for Materiality

Representative Director
and President

Future Direction

Increased revenue
via regional
revitalization●Introducing and expanding services that make use ofdigital technologies

We are gradually expanding the digital ticket services that weoffer, and in February 2023 we installed QR-code-compatible
automated ticket gates in the Osaka and Kyoto areas.
Next, in July 2023, we launched an online season ticket
reservation service, which allows customers to reserve season
tickets in advance online and then buy them smoothly at automatedticket machines.
Going forward, we willcontinue to make life easierand more convenient forcustomers.
Note: “QR code” is a registered trademarkof DENSO WAVE Incorporated.

Above: QR-code-compatible
automated ticket gates
Right: Ticket machine forseason tickets

Ramps at Hozenji Station

Sharing services

 evitalization efforts in collaboration with local
R
governments

In cooperation with authorities in our operational
area to revitalize these regions, we have operated
trains wrapped with graphic designs and cycling trains,
run exciting events at stations, decorated our stations
with designs inspired by the local area, and made otherefforts to publicize the appeal of the regions throughour trains and stations.

Toba-Shima Memory trains wrappedwith a graphic design

Corporate GovernanceYasushi Hara

Measures/Initiatives toward the Future

Corporate Information

along our lines—such as in the Nara-Yamatoji and Ise-Shimaregions—this presents us with a real opportunity.

Our Value Creation Strategy

Our Value Creation Story

Future Ideal

Transportation BusinessMessages fromTop Management

Major Company Strategies

Exciting events at our stations

To push ahead with these measures and initiatives, we are working to develop and utilize the right personnel.

39

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

40

10.5%
7.9%

Kintetsu Real Estate Co., Ltd.

163.8 billion

Operatingrevenue ¥16.0 billion

Operatingprofit (loss) ¥Kintetsu Real Estate Co., Ltd.

123.8 billion Operating
profit (loss) ¥14.3 billion

Operatingrevenue ¥Consolidated operating
revenue breakdown

We will go beyond the confines of real estate to be a company that can propose newlifestyles.

Business Overview

Management Resources

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

■	A history spanning more than 50 years and a track record of supplying more than

130,000 condominiums and homes
and operation of facilities that act as regional bases (ABENOHARUKAS, Ten-Shiba, etc.)■	Network of 29 Plat-HOME (platform) for Housing and Living integrated sales bases
along Kintetsu lines■	
The Virtual ABENO HARUKAS metaverse space has had more than 90,000
visitors■	Human resources with diverse qualifications and skills (52 1st-class architects, 4
real estate appraisers, etc.)■	
Possession

Business Environment
While the effects of the pandemic are gradually subsiding,interest in living environments has risen as a result of changing
lifestyles. Against this backdrop, demand for housing, such as
condominiums and detached homes, is positive. Furthermore,
there has been a steady recovery in the number of overseas
visitors to Japan, and ABENO HARUKAS—which marks its
10th anniversary in 2024—now welcomes a large number ofcustomers from inside and outside Japan. We also expectthat redevelopment work and infrastructure preparation
associated with Expo 2025 and the integrated resort (IR) in
Osaka will have a significant impact on land values throughout
the Kansai region and on demand for housing and offices.
Meanwhile, even in the real estate industry, thediversification of lifestyles and the shrinking Japanese
population mean that the elements and functions required

We will move forward with redevelopment projects centeredaround the major stations along our lines. Incorporating
concepts such as “smart cities,” “compact cities,” and “ecocities” to match regional characteristics, we aim to develop
towns suitable to act as bases for their respective areas.
In our operational area, we have rolled out a network of 29
Plat-HOME (platform) for Housing and Living integrated sales
bases for real estate brokerage and renovation business,
which offer one-stop services, and we will strengthen our
housing business going forward.
Moreover, we will work to foster a pioneering organizational
culture that encourages us to take on challenges in thesebusinesses. As examples of our new initiatives that go
beyond traditional real estate, we have constructed andbegun operation of Virtual ABENO HARUKAS, a metaverse
business; begun work on transforming Hamajima Country
Club into an outdoor experience complex that makes use of
the great nature at the location (scheduled to open in 2024);
developed homes with integrated garages (K ∙ BLOC) to makeeffective use of unused land underneath elevated train tracks;and developed the K ∙ DogSpa self-service facilities for dog
lovers. In the future, we will continue to break out of theconfines of the real estate business and to boldly tackle new
business fields.

Our strategy for redevelopment in a shrinking, aging society is
to position the major stations in our operational area, and the areas
around them, as bases where we can concentrate capital investment.
Based on the characteristics of each base, we will introduce thefunctions of “smart cities,” “compact cities,” and “eco-cities” to raise
the population of residents and visitors. Our developments are notlimited to infrastructure, we will also put in place systems to create new
businesses and revitalize local communities.

Coconimo SAIDAIJI, in front of Yamato-Saidaiji Station on the
Kintetsu Nara LineStrengthening the housing business

SMART SPOT within soranosu, on the 17th floor of ABENO HARUKAS

Through synergies in our real estate brokerage, renovation,and reselling businesses, we will create a circular model thatincorporates everything from collating real estate information tobuying, rebuilding, and selling. As well as putting in place measures
to deal with empty houses and empty land, we will help to revitalize
our operational area. We are rolling out Plat-HOME (platform) for
Housing and Living integrated sales bases and SMART SPOT,
unmanned spots where customers can make online consultations
about housings. In these ways, we will propose new ways ofhousing and living.

Challenging ourselves to take on new business fields

Initiatives for Materiality

Future Direction

Promoting base building in the Kintetsu operational area

Corporate Governance

Representative Director
and President

Measures/Initiatives toward the Future

Corporate Information

Takahisa Kurahashi

of urban development are in a state of flux. Trends such ascompanies from other industries entering the real estateindustry and computerization are progressing. In addition,
given concerns about potential risks that could affect the wholeof society—such as rising interest rates or a renewed spreadof COVID-19—we predict that the business environment inwhich we operate will change dramatically.

Our Value Creation Strategy

Our Value Creation Story

Future Ideal

Real Estate BusinessMessages fromTop Management

Real Estate BusinessWe are creating a new Kintetsu operational area as a virtual space—as part of a metaverse-based business, and based on resources
the Kintetsu Group has gained in real life—to bring about synergies
between real and virtual, and further develop market value for the area.
Moreover, we are transforming Hamajima Country Club into an outdoor
experience complex, and in 2024 we will open our glamping facility andoutdoor attractions there.

Artist’s impression of the glamping facility

41

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

42

45.5%
45.5%

Kintetsu World Express, Inc.

International Logistics Business (July 2022 onward)

710.8 billion

Operatingrevenue ¥23.3 billion

Kintetsu World Express, Inc. (July 2022 onward)

710.8 billion

Operatingrevenue ¥Consolidated operating
revenue breakdown

Operatingprofit (loss) ¥23.3 billion

Global Top 10 Solution Partner — A Global Brand Born in Japan
Operating revenue of ¥1 trillion, operating profit of ¥50 billion, more than 1 million metric tons of air freight, andmore than 1 million TEUs of sea freight

Business Overview

Management Resources

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

■	A diverse staff of 18,552 employees in 45 countries■	O ver 50 years of experience in providing high-quality logistics services thatprioritize the customer’s needs■	A global network in 683 locations, 300 cities, and 45 countries■	Service quality certified to international management and security standards■	Highly competitive, continuing growth in freight volume, now at 630,000

metric tons air freight and 690,000 TEUs sea freight annually

In the international logistics market, the top ten companies—mostly
European and American logistics companies known as “mega-forwarders”—
possess around 40% of market share. For us to compete with and overcome
these mega-forwarders, it is imperative that we expand volumes for air freight
Kintetsu World Express (U.K.) Ltd.
and sea freight, our lead drivers of operating revenue. At a minimum, we needto expand volumes to 1 million metric tons for air freight and 1 million TEUs (1 TEU = 1 × 20’ container equivalent) for sea
freight. As a Japanese forwarder, our strengths lie in lanes starting and ending in Japan or within Asia, but our market shareof the lanes with the world’s highest volumes—Asia-Pacific lanes and Asia-Atlantic lanes—is still low and improving it is aconstant issue for us.
Specifically, as part of our Management Plan 2027, we have set the core pillar of our growth strategy as expanding
market share in eight lanes (including air and sea lanes between Asia and the Americas and between Asia and Europe). With
the numeric targets in place, we will promote the strengthening of our sales activities.

Future Direction

Business Environment
Currently, inventory is continuing to build up in various
regions around the world, and there are concerning factors,
including geopolitical risks such as the Russia-Ukraine
conflict and confrontation between the US and China as wellas continued increases in interests rates in developed nations.
Due to concerns over these risks that could lead to economic
stagnation, and also changes in consumer trends and values,
we find demand for transportation is not as strong as it could
be, which means the future outlook remains unclear. We areafraid that the market could change faster than expected,
the balance between supply and demand in internationaltransportation could crumble, or an intensification ofcompetition in the market could impact our performance.

43

Kintetsu Group Integrated Report 2023

We held repeated discussions among management about
the ideal we should strive for in the changing international
logistics market to raise the Group’s brand value and growsustainably by continuing to be chosen by customers. As
a result of these discussions, we formulated a long-term
vision. To work toward the numerical targets in the vision,
the Group aims to come together and act to improve quality,competitiveness, and its ability to address issues, and to be alasting company selected by customers.
The concept we came up with was “Global Top 10 Solution
Partner — A Global Brand Born in Japan.” The first part refers
to our aim to take our place in the top ten companies in theworld in terms of operating revenue, air freight volume, andsea freight volume. The second part, meanwhile, hints at theway in which we are able to flexibly respond to customers’
needs and offer a distinctly Japanese level of meticulous
service.

Introducing and operating next-generation IT

KWE-Kintetsu World Express (Thailand) Co., Ltd.

To support a business scale that can cope with 1 million metric tons of air
freight and 1 million TEUs of sea freight, we plan to bolster the IT functions thatwill be the core of our operations. As concrete examples, we are carrying out thefollowing initiatives.
●E xpanding functions of core task systems●P romoting the move of IT assets to the cloud● I mproving employees’ IT resilience and toughening up IT security, in preparation
for cyber-attacks●A utomating tasks and improving productivity by promoting the digitalization of
information and data

Developing human resources and promoting diversity
As another way to support this larger business scale, we will train
employees who can act from a global perspective. Specific examples include
the following.
●T raining and developing personnel who, even in an age where the businessenvironment is undergoing dramatic change, can respond to those changes
flexibly and proactively, contribute to business development, and shoulder
the company’s lasting development●R ecruiting and appointing personnel by respecting diversity, and investigating
and preparing for the introduction of working styles (systems) that arecompatible with individuals’ varied lifestyle

Initiatives for Materiality

Expanding volume

Corporate GovernancePresident andChief Executive Officer

Measures/Initiatives toward the Future

Corporate Information

Nobutoshi Torii

However, we are also aware that such changes are one partof the process of returning to normality from an unusual
situation, like the unprecedented experience we had with the
COVID-19 pandemic. Therefore, in the logistics market, forwhich we can expect sustainable growth in the future, ourpolicy remains unchanged—to expand the volume we handle
and achieve sustainable development.
Precisely because the situation is so harsh, we have to be
more sensitive than ever to market changes so that we do not
miss out on business opportunities. To this end, we believe
it is vital that we strive every day to collect information that is
highly sensitive to such opportunities, and to make accurate
decisions and act rapidly.

Our Value Creation Strategy

Our Value Creation Story

Future Ideal

Operatingprofit (loss) ¥Messages fromTop Management

International Logistics Business

Kintetsu World Express (U.S.A.), Inc.

Kintetsu Group Integrated Report 2023

44

Kintetsu Department Store Co., Ltd.

Operatingrevenue ¥202.7 billion

Operatingprofit (loss)¥ 2.7 billion

Kintetsu Department Store Co., Ltd.

107.8 billion Operating
profit (loss) ¥1.5 billion

Operatingrevenue ¥Consolidated operating
revenue breakdown

A platformer that enriches life

Business Overview

Management Resources

In our central Kinki region and in the Chubu region, we currently
manage ten directly operated stores, including our flagship Kintetsu
Department Store Main Store Abeno Harukas, and three othercommercial facilities.
As well as our regional co-creation department store businessthat grows and develops with local communities, we are working
to create new business models such as our franchising businessthrough which we have developed a wide variety of stores in different
industries, and our entry into the agriculture business.

■	13 directly managed stores and facilities centered on the Kinki andTo bring about a richer, more sustainable society, we will follow changes to customers’ lifestyles and become acompany that can create and offer new value.

Chubu regions■	Registration of 1.9 million high-quality customers in our operational

area through our KIPS card, out-of-store sales, Kintetsu Tomonokai,etc.
■	Initiatives to create new value with our 2,142 group employees and
7,000 partner companies■	
Sales power based on out-of-store sales staff centered around
wealthy customers■	Sales and customer-attraction expertise and a hospitality mindset
cultivated in the department store businessBusiness Environment
The restrictions on social and economic activities resulting
from the spread of COVID-19 that went on for so long havefinally come to an end, and our shops are bustling like they
did before the pandemic. The effects of the reforms to ourbusiness structure that we have been working on are now
bearing fruit.
On the other hand, the experience of the pandemic andfactors such as anxiety about society have resulted in majorchanges to people’s awareness and values, raising theirinterest in ways of living that offer safety and peace of mind,
as well as in the global environment. As a company tied up
with local lifestyles, and under our ESG policy of sticking close
to communities and existing alongside them, we will endeavor

As a platformer that enriches life, we aim to follow thechanges customers experience in their daily lives, and forour department stores to create new value. As our primarybusiness strategies to that end, we are promoting a focus on
luxury to improve our branding at Kintetsu Department Store
Main Store Abeno Harukas, and in lower floors we will actively
undertake large-scale remodeling and continue to enhance
the store’s appeal.
At our other stores, we will press forward with developmentsthat fuse lifestyle and community functions, and projects suchas “Scrambled Merchandising,” which mixes clothing, food,and lifestyle goods. At the same time, we will achieve low-cost
operations.
In terms of our franchising business, which is a key objectof our focus as a high-revenue business, progress is fasterthan expected and we will continue to strengthen existing
businesses and develop new business lines. In addition, we
will enter the agricultural business—not only in retail but also
as a producer—to work with other producers in our operational
area to construct networks that will cover everything fromproduction to sales; in this way we will strive to reinvigorate
the region. Through these strategies, we will not only keep ourexisting businesses on track, we will continue to transform tocreate new business and enter new business fields.

Our goal is an appealing, urban department store that can bring incustomers from a wide area—from inside and outside Japan—as ourflagship store and we are undertaking major remodeling. As well as
promoting the introduction of selected brands and enhancing our luxury
zone through a renewal, we have opened multiple new shops that are firsts
for western Japan at confectionery and food sales locations. In the store’s
fashion zone, since last fiscal year we have been developing Scrambled
Merchandising that focuses on lifestyles and we are creating a new floor tohouse this mix of clothing, food, interior goods, and services.
In addition, as one of a range of our initiatives for Expo 2025 Osaka,
Kansai, we opened the first official Expo store in September 2023. Goingforward, we will work hard to improve our ability to attract customers andexpand our clientele, and to further enhance the appeal of the Abeno andTennoji areas.

Expo 2025 Osaka, Kansai official store at ABENO HARUKAS

Initiatives at regional and suburban stores
Taking advantage of the strengths of sites around our stations as well as our established customer base, we will shift
toward our “town centers,” i.e., urban-development-focused commercial services facilities that combine lifestyle andcommunity functions. We will further enhance our food floors, introduce large specialist stores that cater to local needs, andincorporate city services such as from local governments. Through appealing content like these, our aim is to carve out anecessary position for local communities.

Strengthening the franchising business

Sky Terrace at ABENO HARUKAS

45

Kintetsu Group Integrated Report 2023

Bi-sion Terrace

Initiatives for Materiality

Future Direction

Improving profitability at our flagship store, Kintetsu
Department Store Main Store Abeno Harukas

Corporate Governance

Representative Director
and President

Measures/Initiatives toward the Future

Corporate Information

Takuji Akita

to resolve the issues that face local communities and help tomake society richer and more sustainable.
To continue to be a company that can make lives richer
going into the future, we are working full out on a range ofmeasures that go beyond the conventional department store
framework.

Our Value Creation Strategy

Our Value Creation Story

Future Ideal

Merchandise Sales BusinessMessages fromTop Management

13.0%
6.9%

Merchandise Sales BusinessWe are moving ahead with franchising collaborations in various industries,
going beyond just selling things, to offer experiences and services. In fiscal
2023, we opened Baby Face in the Sky Terrace at ABENO HARUKAS as our
second restaurant business, and our new dessert brand jointly developed with
Fujiya, Pekolicious at Kintetsu Department Store Main Store Abeno Harukas.
We had expanded our franchising business to 58 stores in 21 industries as of
September 2023. We will keep taking on the challenge of increasing the numberof stores for our existing businesses and entering new businesses, in order toachieve sales of 20 billion yen soon.

Kintetsu Group Integrated Report 2023

46

KINTETSU RETAIL HOLDINGS CO., LTD.

KinshoStore

202.7 billion

Operatingprofit (loss)¥ 2.7 billion

Operatingrevenue¥ 92.5 billion

Operatingprofit (loss)¥1.2 billion

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

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

We want to be a lifestyle partner that brings customers abundance to their dining tables.
We will propose high-quality products, services, information, and dishes to make life richer.

Management Resources

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

Kintetsu Retailing■	Business expansion in convenient locations inside train stations (approx. 120 stores*)■	Development of original-brand stores in the restaurant business, such as

Edogawa, Hyakuraku, and Caffè Ciao Presso■	Wealth of operational expertise in diverse industries and operational models

Kinsho Store■	Brand recognition and trust from society backed up by more than 65 years ofsales■	A bility

to provide fresh products that offer safety and peace of mind,
particularly those processed in-store■	Business expansion in convenient locations close to or inside train stations*As of September 2023

Business Environment
In the retail and restaurant businesses, with the COVID-19
pandemic drawing to a close, demand among Japanesecustomers and overseas visitors is recovering, and Expo
2025 Osaka, Kansai, which is scheduled for 2025, is also
expected to play a role. That said, due to the inflation thathas come with the recent international situation, we face anumber of issues in the industry: including a drop in consumer
confidence, soaring cost prices and other expenses, labor
shortages, and difficulties retaining personnel. Nor can we
ignore the likely impact on the industry of social issues such
as Japan’s low birthrates and aging population, and the “2024problem” (in 2024, legal changes will result in a cap on thehours drivers in the logistics industry can work, which may
eventually cause stagnation in logistics). Also, given the need

Kintetsu Retailing’s mission is to pump life back into instation and station-vicinity shopping experiences, therefore,
the development of the Kintetsu operational area is essential
for our growth strategy. We have announced that we will fulfill
this strategy by further conveying the appeal of the area byusing our railway facilities for logistics, invigorating existing
stores and the in-station Time’s Place shopping mall, andexpanding our irodori kintetsu brand, which sells goods
produced in the area. In addition, we will strengthen our
manufacturing and retail business for our Hyakuraku Chinese
cuisine and products such as craft beers, reconstruct anddevelop franchising for our restaurant business, and strive toinvest in and develop the personnel we need to achieve ourgrowth strategy.
Through Kinsho Store, we will endeavor to create“personalized” stores that customers will select creating
points of difference from our rivals in the fiercely competitive
supermarket industry. We have shifted from a focus on priceto a focus on value through the development of our private
brand “Harves Quality” products. In addition to our proposalbased sales activities—such as by proposing menus onsales floors and by providing information through apps—wewill strengthen other services, too, including our online andmobile supermarkets.

Craft beer initiatives

Staff member at work at Yamato Brewery

Kintetsu Group Integrated Report 2023

Serving robot at Iga Golf Course

Kintetsu Retailing

As part of our craft beer business which we launched in 2019, beer that is made at Yamato
Brewery, close to Kintetsu-Nara Station, makes its way to customers via outlets such as
directly managed restaurants at Kintetsu-Nara Station and Yamato-Saidaiji Station. At someof these restaurants, we have introduced automated beer servers that are connected to
payment systems. In the future, we will increase the supply of our beer by opening a second
brewery and will reach a wider area by expanding the number of stores/restaurants that carry
craft beer, and by developing other sales channels. With these efforts we will help revitalize
our operational area.

Improving efficiency by concentrating shipping and manufacturing

Kinsho StoreThe perishables and agricultural produce we receive from producers, as well as generalprocessed foods, are all received at logistics centers, after which they are sent to storesby truck, thereby bringing together shipping and receiving tasks in one place. Also, byconcentrating processing at our processing center for products like meat and salted salmon,
we are working to both streamline tasks and lessen the burden in terms of tasks performed
in-store. Going forward, for further streamlining and efficiency improvements, we are looking
into processing general perishables and preparing carry-out food at these centers.

Utilizing IT

Checking an AI-automated orders terminal

47

Kintetsu Retailing

As a result of society-wide low birthrates and the aging population, Japan now faces
shortages in its workforce. Therefore, we are working to enact measures that will allow us tocontinue operating our stores and maintain our competitiveness, even as this problem grows
worse. In a first for the Kansai region, in November 2022 the FamilyMart chain of convenience
stores opened up a store that uses an unmanned payment system in Fuse Station. In May
2023, meanwhile, we introduced serving robots at our golf course restaurant. In these andother ways, we are making advances to reduce the number of staff required.

Initiatives for Materiality

Future Direction

Initiatives to address labor shortages

Corporate Governance

Representative Director andPresident

Measures/Initiatives toward the Future

Corporate Information

Shigenobu Oya

to respond to SDGs and environmental issues, we are called
on to go beyond our previous business lines and to promotebusiness activities that can respond to changes in customers’
consumer behavior and to digitalization. We must also put
in place working environments that aim to support work foreveryone.

Our Value Creation Strategy

Our Value Creation Story

Future Ideal

Operatingrevenue ¥KINTETSU RETAIL HOLDINGS CO., LTD.
Consolidated operating
revenue breakdown

Kintetsu
Retailing

Business Overview

Merchandise Sales BusinessMessages fromTop Management

13.0%
5.9%

Merchandise Sales Business

Staff member at work at the processing center

Kinsho Store

Based on a vast range of data such as sales results, weather information, and planningdata, we have introduced AI-automated ordering systems for foods categories like milk andtofu and certain categories like prepared food products. We are working to further reduce timeneeded to make orders, opportunity losses, and waste losses, by improving the accuracy ofordering through these systems.

Kintetsu Group Integrated Report 2023

48

Kintetsu Miyako Hotels
International, Inc.

Hotel and Leisure Business292.6 billion

Operatingrevenue ¥Operatingprofit (loss)¥ 9.1 billion

Kintetsu Miyako Hotels International, Inc.
Operatingrevenue
Consolidated operating
revenue breakdown¥ 27.6 billion

Operatingprofit (loss)-¥4.1 billion

We will improve the attractiveness of the Miyako brand and promote the dual-axis management
approach with both directly managed hotels and management contract hotels.
We will provide hospitality that is the continuation of tradition and ceremony, while still evolving in response to
the times.

Business Overview

Management Resources

We are developing the Miyako Hotels & Resorts brand torespond to customers’ diverse needs in a number of businesscategories: Miyako Hotel, which are full-service city hotels;
Miyako City, which are casual-service city hotels; Miyako Resort,which are full-service resort hotels; hotels next to theme parks;
and Japanese inns. We focus on the tradition, peace of mind,
quality, and hospitality that we have passed down for more than
130 years, and offer our guests diligent thoughtfulness and aheartwarming time that comes from the elegance we havecultivated.

■	More than 130 years of history since our founding in 1890
■	Trust in the Miyako brand, in which tradition lives on■	D iverse personnel with the skills and specialisms to suit hospitality■	22 hotels and Japanese inns around Japan, with around 5,400 guest

rooms■	Loyalty program, Miyako Plus, with around 120,000 members

Future Direction

Business Environment
The hotel industry has in recent years faced an incredibly
harsh business environment due to the COVID-19 pandemic.
However, with the significant easing of restrictions on foreign
visitors entering Japan in October 2022 and the Japanese
government’s reclassification of COVID-19 as a class-5
disease (the same as the flu) in May 2023, demand in theindustry is rapidly recovering. As well as placing importanceon domestic demand and strengthening our foothold there,
we will implement steady efforts to capture the rapidly risingdemand among inbound visitors. On the other hand, there
is a chronic shortage of the personnel needed to respond to
this rise. As such, we will do everything we can to prevent job
turnover by improving the way workers are treated, and tooffer customers hospitality that exceeds their expectations.

49

Kintetsu Group Integrated Report 2023

Enhancing value of the Miyako brand andimproving our publicity of it
Raising appeal by updating the membership program
Artist’s impression of a pre- and
GRANOFFICE Shirokane	In 2022, Miyako Hotels & Resorts’ membership
post-natal care hotel room
Miyako Plus app
program, Miyako Plus, underwent a major renewal tobe reborn as a more attractive program that can enhance member loyalty. By September 2023, the membership had grown to 120,000,
and by providing a highly convenient app and services adapted to membership status, we aim to encourage customer use and to growa membership organization that will contribute to revenue.
Increasing charm by promoting new businesses●	
In July 2023, we started operations for a pre- and post-natal care hotel at Miyako City Osaka Hommachi. This service
caters to the latent need for support for those who are going to give birth or have recently done so, while taking advantageof the special characteristics of a hotel, and will lead to new business opportunities.
●	At the Sheraton Miyako Hotel Tokyo, in April 2022 we opened the GRANOFFICE Shirokane office space for guests. It fuses
office services with a variety of other hotel services, to provide a new workstyle for the post-pandemic age.

Promoting measures to improve employee
satisfaction
Using the strength that comes from having a networkof many hotels, we promote measures that will boost
employee satisfaction. Increasing their motivation andloyalty to the company, in turn, leads to a higher-quality
service for our guests.
●	
We hold accommodation hospitality and hotel cuisinecontests, among others, for employees to demonstrate
the skills they have gained in their daily work, while also
representing their respective hotels.
●	
We have enhanced our hotel experience programswith the goal of giving back to employees while also
increasing the knowledge they have of our products.

	We conduct study seminars to help employees become asommelier or gain specialist technical qualifications fromThe Japan Hotel and Restaurant Service Development
Association. Participating employees from different hotels
can join in online during their normal working hours, improving
their knowledge and skills through exchanging ideas.

●

Accommodation hospitality contest

A newly certified sommelier

Initiatives for Materiality●

Corporate Governance

Representative Director andPresident

Measures/Initiatives toward the Future

Corporate Information

Takashi Nishimura

We are rolling out our historic hotel and Japanese innbrands, which are rooted in our region, to the rest of Japan.
Of course, we will continue to pass on the excellent standardsof service of the Miyako brand, part of an unbroken tradition,but our goal is to continue to refine and evolve this so that we
can improve our hospitality and offer customers the addedvalue they will love, and so that our hotels and Japanese inns
will be chosen by guests.
Since October 2021, we have been promoting a dual-axis
management approach with both directly managed hotels
and management contract hotels. For directly managed
hotels, we carried out renovations for guest rooms at theSheraton Miyako Hotel Osaka and Miyako City Kintetsu Kyoto
Station. For management contract hotels, meanwhile, we areusing capital from the Blackstone Group (the company that
contracts us) to undertake extensive renovation work at guest
rooms and other locations at the Miyako Hotel Kyoto Hachijo
and Hotel Kintetsu Universal City.
Seizing on the major business opportunity that Expo 2025
Osaka, Kansai presents us with, we are making preparations
and proactively implementing initiatives such as planning
redevelopment work for the Kintetsu Group’s assets, andstrengthening our information gathering and publicity work inorder to gain management contracts for other hotels.

Our Value Creation Strategy

Our Value Creation Story

Future Ideal

18.7%
1.8%

Messages fromTop Management

Hotel and Leisure Business

Promoting greater task efficiencies through automationand mechanization
	We have installed automated check-in machines at all of our Miyako
City hotels. These machines are fitted with the ability to scan
passports, so they can also provide overseas guests with a smart
check-in option.
●	We have introduced cleaning robots at the Westin Miyako Kyoto andSheraton Miyako Hotel Osaka. As well as saving labor, these robots
can work any time of day or night to provide clean spaces.
●

Automated check-in machines(Miyako City Kintetsu Kyoto Station)

Cleaning robot(Sheraton Miyako Hotel Osaka)

Kintetsu Group Integrated Report 2023

50

252.1 billion Operating
profit (loss) ¥11.4 billion

We are the company that provides enjoyments and excitements in variety of scenes ineveryday life as well as in the extraordinary.
Through the proposal capabilities and networks that we have gained in the travel business, as well as diverse alliances, wewill provide not only extraordinary pleasures such as travel and events, but also everyday pleasures such as life support.

Kinki Nippon Tourist and Club Tourism are thetwo core brands of KNT-CT Holdings Co., Ltd. Kinki
Nippon Tourist provides companies and corporations
with a wide range of services not limited to grouptravel. For individuals, meanwhile, it offers travel
products that are optimized to individual customers’
needs. Club Tourism is one of Japan’s biggest mediabased travel agencies, with strengths in themed travel.
Through co-creation activities with customers andcommunities, the company has developed a highly
original travel business.

■	E xtensive marketing, planning and proposal capabilities, as well as operational

capabilities with excellent hospitality gained through our business operations by
our creative and experienced human resources■	
Our client base, which comprises educational institutions, corporations, publicagencies and municipal offices■	Membership base of about 10 million individuals (CT has 7 million members and
KNT has 3 million members)■	
Nationwide suppliers’ network (The KNT-CT Partners Association consistsof lodging, sightseeing, and transportation-related facilities with around 3,400
facilities, and the “Tabimaru-kai” organization incorporates around 170 companies
and 480 agency shops that carry out affiliated sales.)Working with communities to create regional tourism, attract visitors, and create even more fans of the region.

Future Direction

Akimasa Yoneda
President & CEO

Business Environment
I would like to express our sincerest apologies to thecustomers, business partners, and all others who were
impacted by the overcharging cases at Kinki Nippon Tourist.
With regard to the cases, we commissioned an investigationcommittee, made up of external experts and others. Basedon the committee’s results, we have formulated recurrence
prevention measures, and we are currently implementing
these.
We are also extremely sorry to those customers who were
overcharged and we have returned their money after ourserious discussions.
In the future, we as a company will all work together torecover the trust of everyone in society, and to reform ourcorporate culture.

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Kintetsu Group Integrated Report 2023

Taking on board the lessons of Kinki Nippon Tourist’s
overcharging cases, to ensure thorough measures to stop itfrom happening again and to regain society’s trust, we will carryout three initiatives: ① reforming awareness, ② reforming
work tasks, and ③ reforming the organization.
We already conducted awareness surveys for all 4,600
employees of the KNT-CT Holdings Group, and taking thatsurvey as a starting point, we are promoting reforms toemployee awareness by holding direct dialogue between
management and frontline employees, establishing a
corporate academy where employees can learn about these
topics, and running ethical training.
In terms of reforms to work tasks, we formulate a seriesof guidelines and make our internal procedures stricter, while
also utilizing IT systems, so as to create mechanisms toensure compliance with laws and regulations and to prevent
us from engaging in any further improper conduct.
Organizational reforms, meanwhile, have involved
establishing the Compliance Committee and Compliance
Reforms Division. In addition, we established a new Legal
Ethics Management Center at both Kinki Nippon Tourist (KNT)
and Club Tourism (CT), and we will be thorough in bringing
together and managing practical tasks related to compliance,and raising awareness of group-wide compliance policy andtraining.
In these ways, KNT-CT Holdings Group is promoting
reforms to the corporate culture from the perspectives of bothcompliance and governance.
We will also continue to make changes to our businessstructure, and to diversify our business portfolio by creating
new value in the travel business, and creating new businesses
in travel-related fields and adjacent domains.

Messages fromTop Management

Operatingrevenue ¥Management Resources

Our Value Creation Story¥ 9.1 billion

Business Overview

Measures/Initiatives toward the Future
Reforming awareness

Ethical training (fixing of morality andcorrect behavior as members of society)Invigoration of communication throughtown hall meetings with the management team,and promotion of self-aware, autonomous
employee behavior through participation in
workplace workshops
Spread of uniform standards of value and guidelines
for action through the corporate academy, etc.
Reviews oftarget setting,etc.

Improvements
to information
sharing, etc.

Employee awareness surveys
Redefinition of
Operation of
Checks onroles of KNT-CT
the Legal
all contracts,
Holdings andEthicsetc.
group companies, Management
etc.
Center

Reforming theorganization

Reforming
work tasks

Overall framework for recurrence prevention
measures
Reforming awareness	Ethical training
To establish guiding principles that steer employees sothey do not deviate from sincere, proper business activities.
● Town hall meetings and workplace workshops
To foster a free, open corporate culture through direct
dialogue between management and frontline employees.
● Corporate academy
To spread our code of conduct and have employees takepart in discussions related to the company’s societal
raison d’être and our ideal.
To reconstruct our corporate identity.
Reforming work tasks●	S ystematization of stocking and billing detail management●	
Contract reviews that use AI contract evaluation tools●	Introduction of digital forensic tools
Reforming the organization●	Reviews of target setting and budget management methods●	Redefinition of roles of KNT-CT Holdings and group companies●

Initiatives involving employees / Utilization of IT systems and DX

Creation of new businesses and diversification of business portfolios
Enhancement of the regional co-creation
business

Development of inquiry-based learning
programs

Publicity for regional appeal by creating
destination-focused products in collaboration
with local authorities

As well as school trips, we support schools invarious situations.

Matsue Water Lantern Festival

Pre-travel (taking a lesson)

Post-travel (the result)Spreading Japan’s appeal overseas
Sales of onigiri (rice balls) in Los Angeles
awaken a desire to visit Japan

Publicity poster

Our Value Creation Strategy

Operatingprofit (loss)

KNT-CT Holdings Co., Ltd.
Consolidated operating
revenue breakdown

Future Ideal

292.6 billion

Operatingrevenue ¥Initiatives for Materiality

KNT-CT Holdings Co., Ltd.

Hotel and Leisure BusinessCorporate Governance

18.7%
16.1%

Corporate Information

Hotel and Leisure Business

Store

Kintetsu Group Integrated Report 2023

52

PART

Initiatives for Materiality

Materiality

Creating a Lifestyle that Anticipates
Changes in Values

Osaka-

ImazatoYoro Railway
KoganeKasumori
Kintetsu-Hatta

Jujo
Kamitobaguchi Yokkaichi
Kintetsu- Asunarou
Railway
Nara

Namba
Kintetsu Railway is working with a number of companies to
KintetsuIIga Railway
OsakaYao
Abenobashi
install bike-sharing stations at 17 stations and 20 other locations
Tawaramoto Line
Kawachi(as of October 2023) in Osaka, Kyoto, and Aichi prefectures,
Kokubuand to improve ease of use for those using the bicycles to
Osakakyoikudaimae
Iga-Kambe
commute to work or school, or for tourism purposes.
At seven such locations, including Fujiidera Station andImagawa/Harinakano/
Domyoji Station, we use Hello Cycling, a bike-sharing platform
Yata/Nunose/
Takaminosato/Kawachi-Matsubara/developed by OpenStreet Co., Ltd., to directly manage the
YoshinoFujiidera/Domyoji
service, and we will expand into tourist areas in Nara and Mie
prefectures.
* Bike-sharing services allow users to use an app to hire and return bicycles even at different locations

KuwanaKintetsu-Yokkaichi

A range of our companies, including Nara Kintetsu Taxi and the rest of the Nara Kotsu Group,
Gifu Kintetsu Taxi, and Meihan Kintetsu Bus, are collaborating with local authorities to roll outtransportation services that can flexibly respond to demand with taxis and buses.
With support from local authorities, we are able to to provide various means of transportation
for daily use or tourism over a broad area not well covered by public transportation with fares lessexpensive than normal taxis.
Demand-responsive taxi (Nara Kintetsu Taxi)

Demand-responsive transportation by the Nara Kotsu Group (Nara Prefecture)

MatsusakaMatsusaka
IseshiToba

Our Value Creation Story

Expanding bike-sharing services in our area

■ Providing demand-responsive transportation through taxis and other means

Kintetsu-Nagoya●●

Taxis: in Tenri, Kashiba, Heguri, Sango, Uda, and Oyodo
Buses: Yoshino Town Smile Bus and Totsukawa Village Bus

Demand-responsive transportation by Gifu Kintetsu Taxi (Gifu Prefecture)
Kashikojima●

Taxis: in Godo, Sekigahara, Ikeda, and Yoro

Demand-responsive transportation by Meihan Kintetsu Bus (Gifu Prefecture)●

Buses: in Wanouchi and Yoro

Demand-responsive bus (Meihan Kintetsu Bus)

Cycling trains
Bike-sharing station

We are promoting diverse purchase and payment methods for passenger tickets using digital technologies, and working on
greater convenience and better streamlining.

■ New passenger services being introduced by Kintetsu Railway

Cycling train■ Maintaining route bus services
Strengthening cooperation with local authorities
The various companies that run our bus business—
Kintetsu Bus, Nara Kotsu Bus Lines, Bocho Bus Company,
Mie Kotsu, and others—have been participating in regional
public transportation meetings, and through these and otherchannels have been improving communication with local
authorities and residents of our operational area. For certain
routes, we also receive support from local authorities for ouroperations.
From September 2022 to February 2023, with support
from the cities of Yao and Fujiidera (support to get people out),
Kintetsu Bus implemented a campaign to encourage bus use
where passengers in the two cities could ride a route bus forjust 100 yen a journey. The effect of this was a 20% or morerise in users compared to other routes during the campaign.

53

Kintetsu Group Integrated Report 2023

2 Promoting digitalization in railway and bus passenger services

With a halt to operations by Kongo Bus, in response toappeals from four towns and cities, including Tondabayashi
in Osaka Prefecture, and a decision by the regional public
transportation promotion organization, in December 2023 wetook over certain routes previously operated by Kongo Bus
from local authorities, andwe are working together tosecure this local means oftransportation.

FY2021Introduced digital tickets (compatible with QR codes via asmartphone, designated areas only)

FY2022

Expanded use of digital tickets (expanded types of tickets andareas where they can be used, introduced PayPay payments)

July
2023

Introduced online reservation service for season tickets
Enabled season ticket sales via ticket machines (and ended
their sales at ticket offices)

Corporate GovernanceThroughout the year, we run trains that allow passengers to take their App
bicycles on with them on the Kintetsu-Tawaramoto Line, between Matsusaka
Station and Kashikojima Station, along the whole Yoro Railway, most of Iga Railway, and part of
Yokkaichi Asunarou Railway. This increases daily use and also cycling tourism.
Moreover, from December 2023 to March 2024, in collaboration with national and Mie
prefectural governments, Kintetsu Railway is trialing school-commute cycling trains between Toba
Station and Kashikojima Station to help some students at two high schools in the area.

February
Started a Kintetsu ICOCA point reward service
2024
FY2024

Our Value Creation Strategy■ Strengthening links between rail and road

Stations with bike-sharing stations Kyoto
Cycling train routes

Route bus (Nara Kotsu)

Initiatives for Materiality

The Kintetsu Group works with local authorities and companies to provide transportation in many different forms within a onemile radius of its stations or in areas not covered by public transportation. As well as encouraging use of public transportation, these
efforts contribute to resolving local issues and help bring prosperity to the area.

Expand digital ticket use to almost all stations
Enable card touch payments for passengers on all lines(excl. some stations)Ticket machine fitted with QR code
reader and card touch payment
function■ New passenger services by our railway and bus companies
Iga Railway

Introduced smartphone season ticket sales (February 2023) as well as transportation
IC card systems and ICOCA season ticket sales (scheduled for March 2024)

Yoro Railway

Introduced smartphone student season ticket sales (March 2023) and online season
ticket reservations (May 2023)

Bocho Bus Company &Meihan Kintetsu Bus

Introduced transportation IC card systems (March 2023)

Nara Kotsu Bus Lines

Online cash-based IC card season ticket (CI-CA plus) sales and automatic renewal
service (March 2023)
Introduced card touch payments (demonstration in April 2023, full-scale introductionand expansion of routes in October 2023)

Kintetsu Group Integrated Report 2023

Corporate Information

1 Maintenance and diversification of means of transportation

We face an extremely challenging business environment—structural issues such as theshrinking population and fewer customers due to the pandemic; need to respond to driver
shortages; soaring fuel costs; and other factors—and therefore some of our companies
have carried out fare revisions: Mie Kotsu in March 2023, Kintetsu Bus in November 2023,
and Nara Kotsu in February 2024. At the same time, we will deepen our ties with local
authorities, maintain the bus network to the greatest possible extent, and fulfill our mission
as a provider of public transportation.

Messages fromTop Management

Securing sustainability through fare revisions

54

Materiality

As Japanese society is facing a shrinking, aging population,with declining birthrates, we are placing our major stations and theareas around them as our bases of operations, and are redeveloping
these to match local characteristics and to incorporate functions
from concepts such as “compact cities,” “smart cities,” and “ecocities,” and to raise the population of residents and visitors.

We are strengthening the way in which we collaborate with local
authorities in various capacities, including improving and publicizing
the appeal of areas through our stations and trains, community
development centered on our stations, making lifestyles richer,and revitalization of tourism. Through these we aim to energize
communities and increase value in our operational area.

Kyoto

KuwanaOsaka-Namba
OsakaAbenobashi

Abeno-Tennoji area(see p. 33)

Ikoma
KintetsuYao
Yao City

Ikoma
City

Yamato-Yagi

hotelsAt Kintetsu Miyako Hotels International’s Miyako City Osaka
Hommachi, since July 2023, we have been working with Sky
Recruiting Solutions to provide some guest rooms to offer
physical and emotional care to those who are expecting or
have recently given birth and to support the health of theirchildren.

groping and other bad behavior■ New station services
Started a trial of a service to provide sanitary pads for free in the toilets at Yamato-Saidaiji
Station, in collaboration with Next Innovation

August 2023

Started Share Buggy, a lending service for baby strollers, at Kintetsu-Yao Station, in collaboration
with Babydoor

September 2023

Installed prescription medication retrieval lockers at Osaka-Abenobashi Station, in collaboration
with GOODAID

December 2023

Installed “telecubes” (private working booths) at Kyoto Station, in collaboration with Telecube
Services

Tondabayashi
Nara Pref.

Prescription medication
retrieval lockers

Indicator

FY2021 results

FY2022 results

Target year

Target

Kintetsu Railway

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

FY202580 total

Kintetsu Department Store

E-commerce sales¥5.8 billion¥4.3 billion

FY2024

Gradual expansion

Kinsho Store

Proportion of total sales of key health products

0.3%

2.5%

FY2025

2.5%

Kintetsu Group Integrated Report 2023

IseshiUjiyamada
Toba

YoshinoInvigoration in the
Ise-Shima area(see p. 35)

Kashikojima■ Osaka-Uehommachi■ Kintetsu-Yokkaichi

We are currently carrying out studies into how to re-equip the areaaround the station to make it a place that brings together people and ideas,
and to improve how it functions as a terminal. Firstly, looking to Expo 2025
Osaka, Kansai, we will transform the area into a transport hub, redeveloping
the existing bus terminal
and train station, andmore besides. During theexpo, Kintetsu Bus will
be running a shuttle bus
between Uehommachi
and the expo venue.

We are promoting a development plan that makes use of land thatused to be the site of a commercial facility in front of the station tocreate a regional landmark, taking into account the Bus Terminal Project
promoted by the Ministry of Land, Infrastructure, Transport and Tourism.
Separately, Sanko Real Estate, part of the Mie Kotsu Group, iscurrently constructing a large-scale office building called Yokkaichi
Station Sanko Building (tentative name) with the aim of opening it inspring 2025. The building
has acquired energy-efficient
ZEB Ready certification, andis the first building in Mie
Prefecture to be awarded thehighest S-rank CASBEE Smart
Wellness Office certification.

In 2023, as part of the project by the city of Nara, overhauls ofaccessible north-south walkway through the station and the station plaza
were completed alongside our redevelopment work on the station and thesurrounding area with cooperation throughout the Kintetsu Group. This
integrated development for both station and surrounds has involved improving
the station’s functions as a transport hub, but also the introduction of station
operations that utilize cuttingedge technologies; the expansionof the in-station shopping
mall; renewal of the Kintetsu
Department Store; and theopening of Coconimo SAIDAIJI,
a commercial facility that uses its
greenery to draw people in.
Coconimo SAIDAIJI

55

Tsu

1 Promoting redevelopment of our operational area

■ Yamato-Saidaiji (Completed 2023)■ Lifestyle-related indicators and targets (KPIs)
Company

Kintetsu-Yokkaichi
ShirokoUgata

Working alongside the Stop Chikan Badge Action Center, whichfights molestation, the Kintetsu Group carries out awarenessraising activities to help prevent groping and other bad behavior
on its trains. As part of the En-katsu Project, each year Kintetsu
Department Store Main Store Abeno Harukas exhibits badges
from a groping prevention
badge contest organized by
the center, and in May 2023
Kintetsu Group Holdings andthe center presented Kindai
University Junior High Schoolwith a groping prevention
Groping prevention badge contest
seminar set and gave a talk on (Kintetsu Department Store Main Store
Abeno Harukas)
the subject.

October 2022

Kintetsu-Tomida

Candidate site for new station(to the south of Nara Medical
University Hospital)
Kashiharajingumae

Higashisumiyoshi Ward■E
 ducational activities to help prevent

KintetsuKoriyama
YuzakiHarinakano■ L aunch of pre- and post-natal care at our

KintetsuNara■ Kawachi-Kosaka

Our Value Creation Story

Yamato-Saidaiji

Our Value Creation Strategy

Osaka-Uehommachi Kawachi-Kosaka Gakuemmae

Kintetsu-Nagoya

Initiatives for Materiality

The En-katsu Project launched in 2013, the same year that Kintetsu Department Store Main Store Abeno Harukas opened,
and in June 2023 it reached its 10th anniversary. The project aims to develop programs to make society that little bit better.
Centered on department stores, the project runs around 60 resident activity programs each month, bringing together resident
activity organizations, members of the local community, and individual volunteers. Over the ten years, around 180,000 people havetaken part. Going forward, we will continue to expand this community.

Stronger cooperation with authorities

Corporate Governance■ 10th anniversary of the En-katsu Project at Kintetsu Department Store Main Store Abeno Harukas

Redevelopment of the area

Corporate Information

The Kintetsu Group works with various others on activities and services that help to bring people peace of mind and make theirlives richer.

Messages fromTop Management

Energizing Communities by Enhancing the Network

3 Challenge of co-creation for peace of mind and richer lives

We are moving forward with developing a complex on a
13,000 m2 site close to the station that takes local characteristics
into account.

■ Gakuemmae
We have acquired an approx. 50,000 m2 plot of land, andwe are promoting a large-scale comprehensive development
project that will include 500 condominiums and 100 houses.
Kintetsu Group Integrated Report 2023

56

■ Collaborative agreement with Higashisumiyoshi Ward in Osaka

We are participating in a city-led investigation committee that is looking into developing theregion around the station to promote walking and healthy lifestyles by enhancing the station as apublic transportation hub, and we are working on translating it into business.

Messages fromTop Management

In June 2022, we remodeled the Yuzaki Station building to represent a
traditional Yamato-mune style of architecture with modern design uponcompletion of the new plaza that Kawanishi, in
Nara, had built in front of the station.
In the future, in collaboration with the town,
we will publicize its charms to help ensure Yuzaki
Station and the plaza attract lots of visitors.

3 Compact community development around major stations[Construction of a new station and community development to the south of Nara
Medical University Hospital]
The University Hospital and Surrounds Development Committee, which comprises Nara Prefecture,
Nara Medical University, Kashihara City, and the Kintetsu Group, is moving ahead with plans to establish
a new train station to the south side of the hospital, and is cooperating to make it a reality.

On the Kintetsu Minamiosaka Line and Nagano Line, wehave been implementing South Osaka Project: a Town Full of
Art to expand the area’s appeal throughart. At locations such as Harinakano
and Tondabayashi stations, artworks by
students and other involved in art in thearea are shown in galleries or as murals.

Artist’s impression of the Kintetsu-Koriyama
Station and surrounds project■ Comprehensive collaborative agreement with Ikoma City
Ikoma City and Kintetsu Group Holdings concluded a comprehensive collaborative agreement on September 1, 2023. The KintetsuGroup has developed a wide range of businesses in Ikoma, and has previously worked with the city on various projects, particularly on
developing housing. With this agreement, the city and the Group are working together to investigate and implement the following specificmeasures to to enhance value in our operational area.
(1)	Base formation: community development around Gakken-Kita-Ikoma, Ikoma, Higashi-Ikoma, and
Mt. Ikoma area branding
Minami-Ikoma stations
based on retro themes(2)	Promoting commercialization of community development in the
Gakken Takayama district(3)	Energizing the region∙ Housing measures (redeveloping/reorganizing new towns)∙ Transforming Kintetsu Department Store Ikoma into a town center(4)	Tourism boosting in Mt. Ikoma(5)	Expo 2025 Osaka, Kansai, etc.

■ Collaborative agreement on regional revitalization with Yao City
Yao City and Kintetsu Railway concluded a collaborative agreement on regional revitalization on
October 30, 2023. We are working together to deepen this cooperative relationship, work on theactivities below, and create towns and our operational area full of charm.
(1) Improving value of areas around stations(2) Encouraging more people to visit and live long-term in the operational area(3) Improving convenience of public transportation and encouraging its use(4) Achieving decarbonized towns, etc.

■ Developing condominiums near major stations in Nara and Mie prefectures
Kintetsu Real Estate is developing condominiums close to stations in Nara Prefecture where its limited express trains stop—YamatoYagi, Kashiharajingu-mae, and Ikoma—and near Kintetsu-Tomida in Mie Prefecture. Sanko Real Estate, part of the Mie Kotsu Group, isalso developing condominiums, within walking distance of two major stations where limited express trains stop in Mie Prefecture: Tsu andShiroko. By providing homes in theseconvenient, advantageous locations,which offer easy access to Osakaand Nagoya, and have superior living
environments in place, we aim to raisethe value of our operational area andincrease its fixed population.
Laurel Court Kashihara Jingu The
Laurel Square Yokkaichi Tomida
Praise Shiroko Ekimae
Residence■ Developing our department stores into “town centers” in key regional cities and suburbs
Kintetsu Department Store is transforming its stores in key regional cities and suburbs into “town centers,” by which it means facilities thatoffer community-development-based, integrated commercial services. This involves strengthening our food business; developing sales
areas that mix clothing, foodstuffs, and miscellaneous lifestyle goods; introducing large specialist stores, and other measures to combine
commercial functions with lifestyle and community functions to become indispensable to the region. We have also signed collaborative
agreements with Shiga Prefecture, Mie
Prefecture, and Kashihara City, andare working to energize the area. We
have now carried out renovations to
Kusatsu Store in fiscal 2020, YokkaichiStore and Nara Store in fiscal 2022,
and Kashihara Store in fiscal 2023.
K’s Denki (Nara Store)
Humpty Dumpty (Nara Store)
Plugs Market (Kashihara Store)■ Prosperous community development KPIs

Our Value Creation Story[Moving Kintetsu-Koriyama Station and developing the surrounding area]■ Renewal of Yuzaki Station

Our Value Creation Strategy

Nara Prefecture community development in which Kintetsu Railway is taking part

■ South Osaka Project: a Town Full of Art

Initiatives for Materiality

Nara Prefecture and Kintetsu Group Holdings concluded a comprehensive collaborative agreement on November 27, 2023.
Based on our shared understanding of local issues, we are implementing the following
measures through collaboration and cooperation, with the aim of energizing the region,achieving sustainable community development, and boosting tourism.
(1)	Station-centered community development and access improvements(2)	Maintenance and enhancement of regional public transportation through linking diverse
transport modes(3)	Achievement of convenient lifestyles that offer safety and peace of mind(4)	Boosting tourism and attracting visitors, etc.

Higashisumiyoshi, a ward of the city of Osaka, and Kintetsu Railway concluded an agreement on revitalizing
the region and train line area in March 23, 2022. The two are carrying out various initiatives, including installing
bike-sharing stations at three stations, cooperating with Komagawa Shopping Street, renovating Harinakano
Station and adding a secondary station name highlighting its proximity to Nagai Park and Nagai Botanical
Gardens, putting in place routes to the park, and collaborating in events at the botanical garden.

Corporate Governance■ Comprehensive collaborative agreement with Nara Prefecture

Corporate Information

2 Stronger cooperation with local authorities

Example Kintetsu Railway initiatives in Yao∙ Events to publicize the appeal of manufacturing companies, regional publicity utilizing Yao Station, and work to create new draws
to the Mt. Takayasu area

Factory Train
Factory Station
FactorISM event in Kintetsu Railway WAO! YAO
trains57

Decorated train
Takayasu Manabiyama

Stalls at the Mt. Takayasu summer festival—Enjoy edamame beans and other goodies from Yao—

Company

Indicator

Kintetsu Real Estate

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

Kintetsu Railway

Number of railway passengers

Kintetsu Department
Store

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

Kinsho Store

Mobile supermarkets in operation

Kintetsu Miyako Hotels
International

Tie-ups with local companies

FY2021 results FY2022 results Target year

Target——FY2023
onwardMonitoring indicators*

456 million

501 million

FY2025517 million—

Yokkaichi Store,
Nara StoreFY2024

Gradual expansionof facility numbers

20 (cumulative)

22 (cumulative)

FY202430 (cumulative)—

9 facilities

FY2023

14 facilities* We do not set specific targets, but use indicators to verify results in order to manage progress.
Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

58

Materiality

Enriching People and Communities with Travel

The KNT-CT Holdings Group has taken as its motto “Leveraging our resources for the benefit of communities.” Under this motto,
its group companies and sites throughout Japan are collaborating with people in their communities to address the individual issues
they face. In the future, we will utilize the strengths we have built up in the travel business—knowledge, expertise, and networks—
and focus even further on our regional co-creation business to help these communities prosper.

■ History of campaigns in the Kintetsu area
Since the first such campaign in the Yoshino-Asuka area in 2012, we have held area campaigns about once a year for different
parts of our operational area. Our efforts, however, go beyond the end of each campaign—they have led to activities such as ourfootbath trains to Yunoyama-onsen and the taking root of our campaign in Matsusaka. We use the campaigns as a starting point
for work to strengthen ties with local communities and tie in to ongoing initiatives.
No.
①
②
③
④
⑤
⑥
⑦
⑧
⑨

Year
2012
2013
2014
2015
2017
2018
2019
2022
2023

Campaign
Yoshino-Asuka
Shrine Transfer in Ise-Shima
Muro-Akame-Iga Ueno
It’s Great in Matsusaka
Let’s Go to Nagoya
1,300 years of hot springs at Yunoyama-onsen
Tumulus of Habikino & Fujiidera
MEET SMILE! Ise-Shima
Let’s Go to Mt. Ikoma◇ Main campaign programs
Special access to Buddhist images not normally open to
the public at temples and shrines in the area
• Hospitality and events featuring local people• Tourist trains and trains wrapped with graphic designs• Celebratory event trains• In-car sales of local specialties• Limited-edition travel products, hiking events, and stamp
rallies•

Tsukimi-no-Owara: Bon dancing event we nurture with the region

Our Value Creation Story

Each year, Club Tourism International works with local people to hold an original festival named Tsukimi-no-Owara
that allows people to enjoy different styles of traditional bon dancing from every town or village at Etchu-Yatsuo in
Toyama Prefecture, originally featured at autumn Owara-Kaze-no-Bon festival in the area in early September.
The company collaborates with town and tourism associations, conservationsocieties, and other organizations, and provides overall management andoperational support that includes organizing venues, guidance, and cleaning.
We are also creating tours and drawing visitors to these communities. With thesupport of local people, this is an initiative we continue to treasure and cultivate,over the past 26 events.

Sustainable community development by unearthing hidden tourism resources and creating products
In 2021, Club Tourism International signed a cooperative agreement with Taito City in Tokyo, and has promoted regional
development by uncovering lesser-known tourism resources that are not in the spotlight, and its photography tours of places where
photography is not normally possible—such as bathhouses or craftsmen’s working environments—have proved popular.
The authorities in Taito City also praised the efforts, adding that having companies in the district realize their own appeal acts to spurthem on. Many of the district’s sites have also featured in the media
and the initiatives have been recognized with awards—our workwith the region receiving the Special Award at the Sports Culture
Tourism Awards 2022, and our craftsmen’s working environment
photography tour, the Special Award at the Japan Tourism Agency’s
Sustainable Tourism Travel Product Awards 2023.

“Ryukyu historical romance: An evening of Ryukyu entertainment beside Shuri Castle” in Okinawa
In September 2022, Okinawa Prefecture outsourced the running of events designed to attract visitors to the prefecture to Kinki
Nippon Tourist Okinawa, which organized an event in Shuri Castle Park that featured projection mapping and traditional Ryukyu
performances. Overall production of the event came from one of Okinawa’s most famed entertainers, Daiichi Hirata, and the showused light, sound, and performances to bring Okinawa’s historicculture and the desire to rebuild Shuri Castle to life.
Club Tourism International, meanwhile, created travel products
and drew in visitors from outside Okinawa, raising awareness ofefforts to rebuild the castle, while also contributing to the invigorationof the local tourist industry.

■T ourism-related indicators and targets (KPIs)

Campaign area
⑤Nagoya

Kyoto

Company

Indicator

Kintetsu
Railway

Active measures to attract visitors① Users of Ise-Shima limited express trains② Foreign visitors using our trains

FY2021 results

FY2022 results

Targetyear

TargetFY2026①A
 im to return to pre-pandemic levels(FY2018: approx. 2.65 million)②A im to return to pre-pandemic levels(FY2018: approx. 49.0 million)

Kintetsu-Nagoya⑥Yunoyama-onsen⑨Mt. Ikoma

Osaka-Namba

Ishikiri
OsakaAbenobashi

Kintetsu-Nara

Yunoyama-onsen

Ikoma

KintetsuYokkaichi

Ikomasanjo

Kimpusen-ji Temple (Mt. Yoshino)③Muro-Akame-Iga Ueno ④Matsusaka

Fujiidera
Furuichi⑦Habikino-Fujiidera

Haibara Nabari IgaKambe

Matsusaka

Kashiharajingu-mae
Asuka
Yoshino①Yoshino-Asuka②⑧Ise-Shima

KNT-CT
Holdings

IseshiToba

Kashikojima

Train car fitted with footbaths

59

Kintetsu Group Integrated Report 2023

Accessible tourism participants

MEET SMILE!
Ise-Shima

Regional efforts to attract visitors① Number of programs② Number of passengers attracted/sent to
3 prefectures in the Tohoku region
Peace program & SDGs program① Developments target② Proposals target③ Orizuru Project implementation ratio① Approx. 1.2 million ① Approx. 2.0 million
②
—
②
—
—
① 10
② 76,000—

71,688FY2024 100,000① 11② 222,000① FY2025 ① 20② FY2023 ② 230,000① 5② 227 (100% proposals)③ 1%

Our Value Creation Strategy

for mystery puzzle games, password campaigns for special perks
at stores in the Mt. Ikoma area, and tours of the decommissioned
Ikoma Tunnel.
As part of our efforts to attract inbound tourists fromoutside Japan, to gauge the appeal of the Mt. Ikoma area froman overseas visitor perspective, we have run trial tours andconducted questionnaires.
During the three days of the lantern event, around 1,700
people—mostly young people—took part, and the sight of thelanterns in the night sky alongside the magical nightscape was
highly praised. Over the four months of the campaign, the numberof visitors to Ikoma Sanjo Amusement Park and users of the Mt.
Ikoma cable car rose steeply even compared to pre-pandemic
levels. The result, therefore, was a flourishingarea and a contribution to business there.

Initiatives for Materiality

Most years, Kintetsu Railway conducts promotional campaigns
in the Kintetsu area with the aim of uncovering tourism assets
throughout its area, while strengthening tourism in collaboration
with locals. We cooperate with local authorities, and concentrate
our publicity efforts on specific regions to spread awarenessand attract visitors, but also to discover hidden or new tourism
resources and draw customers to the area over the long term.
In 2023, for the ninth campaign, we went with the theme ofLet’s Go to Mt. Ikoma, which took place in the Mt. Ikoma area
in conjunction with the cities of Ikoma and Higashiosaka from
August 1 to December 10.
Aimed at those living in the area in and around Kansai—those
who can make day trips to the area—we worked to mainly attract
a new, younger demographic in addition to families visiting Ikoma
Sanjo Amusement Park and older hikers. To that end, we held anevening lantern event and a Higashiosaka-viewing sauna event in
the grounds of the amusement park.
Moreover, with the cooperation of shrines and temples in
the area, we have been able to offer visitors special accessand special stamps to be collected, while as other measures toencourage visitors to spend time in the area, we have sold tickets

Corporate Governance■ The unusual at your doorstep: Publicizing the Mt. Ikoma area

Corporate Information

1 Expanding campaigns in the Kintetsu area

Messages fromTop Management

2 Community ties: Invigorating region through co-creation business① 5② 100% implemented came fromFY2023
proposals③ 1,000 participants (indicator changed
to number of participants)

Trains with tumulus decoration

Kintetsu Group Integrated Report 2023

60

Materiality

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

The Kintetsu Group Environmental Targets were revised in November 2023, with domestic offices committed to more ambitious
CO2 emissions reduction targets (total) for fiscal 2030. New targets were set, including targets for overseas offices.

Pre-revision
2.	The Kintetsu Group aims to reduce CO2 emissions (total and intensity) in FY2030 by at least 40% compared to FY2015
levels. Going further, the Group aims for “virtually zero” CO2 emissions in 2050.

Environmental Management System and1 Kintetsu Group Environmental Targets

Revision details (CO2 emissions reduction targets)
2. (1) More ambitious domestic targets(1,000 t-CO2)

800

Railway

600

Buses, etc.

400

1.	The Kintetsu Group aims to reduce energy use—measured by crude oil equivalency (kl)—in FY2030
by at least 20% compared to FY2015 levels.
2. (1) The Kintetsu Group (Japan) aims to reduce CO2 emissions (total) in FY2030
by 50% compared to FY2015 levels.
(2) The Kintetsu Group (Japan) aims to reduce CO2 emissions (intensity) in FY2030
by at least 40% compared to FY2015 levels.
(3) T he Kintetsu Group (Japan and overseas) aims to reduce CO2 emissions (total) in FY2030
by 20% compared to FY2022 levels.
(4) The Kintetsu Group (Japan and overseas) aims to achieve “virtually zero” CO2 emissions in FY2050.
3.	The Kintetsu Group strives to reduce the amount of water it uses and waste it produces.
4.	The Kintetsu Group endeavors to have all group companies operate in an environmentally conscious way with respect totheir respective business and their supply chains.

200

16 domestic companies

Overseas (KWE)

Offset387
241
FY2022

560

500

84

20%
reduction

7

300

53
390

FY2015

600

400

164

100
0

50%
reduction

458

69

300

Each company in the Kintetsu Group formulates its own environmental targets, monitors and analyzes environmental
impact data, and provides environmental education and enlightenment to employees in order to achieve the Kintetsu Group
Environmental Targets.

(1,000 t-CO2)

700

40.9%
reduction

315

500

(Revised November 2023) (Created October 2021)

Facilities

774

700

■ Kintetsu Group Environmental Targets for FY2021–2030

2. (3) New targets, including targets for overseas offices

200

469

448

100
FY2030* Total emissions of 12 companies (FY2015) and of 14 companies (FY2022)

0

FY2022

FY2030* FY2022 (baseline emissions) = 16 domestic companies + KWE (overseas) + Offset* Including Shima Spain Village and Kashikojima Hojoen, both of which became
consolidated subsidiaries in FY2023.

Revision backgroundCO2 emissions (Scope 1 + 2) from domestic offices in FY2022 decreased by 40.9% compared to FY2015 levels, overachieving
the FY2030 target (-40%).
• The Kintetsu Group’s overseas operations expanded dramatically, with the KWE Group becoming a wholly-owned subsidiary in
2022.
•■ The Kintetsu Group environmental promotion framework* Scope of coverage

Clause 1 and Clause 2 (1) and (2) refer to 14 companies with particularly high energy use.
Clause 2 (3) and (4) refer to the above 14 companies and the Kintetsu World Express Group (overseas)
Clauses 3, 4, and the preamble refer to all consolidated subsidiaries.
* The 14 companies refer to specific transportation businesses or specific businesses for which periodic reporting is required in compliance with
the Energy Conservation Act. Their total CO2 emissions account for more than 95% of those from Kintetsu Group Holdings and its consolidated
subsidiaries. Included are domestic offices subject to the Energy Conservation Act.
Relevant companies: K intetsu 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;
Kin-Ei; Kintetsu World Express (KWE); and Kintetsu Logistics Systems* Standards are subject to revision based on the number of companies specified in Clauses 1 and 2.
* Target 2 refers to Scope 1 + 2 CO2 emissions.

Kintetsu Group Integrated Report 2023

Kintetsu Group Holdings Co., Ltd.

CSR Committee
Major group companies

CSR Manager Meeting
Kintetsu Group companies

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

・Formulates group policies
・Determines environmental policies
・Sets environmental targets and verifies results

Major group companies
・CSR promotion reps
(manager level)

・Previews and discusses CSR Committee agendas
・Reviews environmental policies, targets, and initiatives
・Verifies results of environmental targets and data
・Understands each company’s initiatives andexchanges information

Kintetsu Group companies
・CSR promotion reps・All employees

・Examine environmental impact data
・Set environmental targets, and implements
environmental training
・Enact environmental initiatives related to their own
business

Kintetsu Group Integrated Report 2023

Our Value Creation Strategy

1.	We comply with all related laws and regulations and endeavor to protect the environment.
2.	We work to prevent global warming and reduce our environmental impact through initiatives aimed at reducing energy andresource use and waste, while promoting recycling.
3.	We raise employees’ awareness of the environment through environmental training.
4.	We value the relationship we have with regional communities, and through environmental conservation activities we make amajor contribution to society.
5.	We spread this environmental policy among employees and make it available to the public.

Initiatives for Materiality

The Kintetsu Group recognizes that protecting the global environment is a vital issue that should be worked toward jointly by all
mankind, and therefore aims for environmentally friendly corporate management.

Corporate Governance(Created April 1, 2015)

Corporate Information

2. (1) The Kintetsu Group (Japan) aims to reduce CO2 emissions (total) in FY2030
More ambitious domestic targets
by 50% compared to FY2015 levels.
(2) The Kintetsu Group (Japan) aims to reduce CO2 emissions (intensity) in FY2030
by at least 40% compared to FY2015 levels.
(3) T he Kintetsu Group (Japan and overseas) aims to reduce CO2 emissions (total) in FY2030
New targets, including targets
for overseas offices
by 20% compared to FY2022 levels.
(4) The Kintetsu Group (Japan and overseas) aims to achieve “virtually zero” CO2 emissions in FY2050.

Our Value Creation Story

Post-revision■ Kintetsu Group Environmental Policy

61

Messages fromTop Management■ Revision of the Kintetsu Group Environmental Targets (November 2023)

62

■E nergy use and CO2 emissions (companies subject to periodic reporting pursuant to the2 Energy Use and CO2 Emissions

Energy Conservation Act: 14)

184,457

177,827

177,898

FY2022 results② Buses, etc.

kl

25,41024,20917,131

17,784

20,123373,361

320,029-14.3%-20% or more

③ Facilitieskl

141,624

138,645

123,942

114,751

122,008

-50%

Total

kl

359,884

354,555

325,530

310,362

320,029

CO 2 emissions (total)

Unit

FY2018FY2019① Railway

t-CO2

337,000

289,000

266,000

261,000

241,000② Buses, etc.

t-CO2

66,376

63,35044,71046,50052,560③ Facilities

t-CO2

242,347

202,174

176,756

171,270

164,378

Total

t-CO2

645,723554,524

487,466

478,770

457,938

CO 2 emissions (intensity)

Unit

FY2018FY2019kl

457,938-40.9%

1.350

0.890

-34.1%

Intensity (buses, etc.)

t-CO2/1,000 km

0.726

0.774

6.6%

Intensity (facilities)

t-CO2/m2

0.144

0.070

-51.4%-40% or more

Energy use (crude oil equivalent)

400

Railway

300

154
27

200

100

0

367
(98)

151

146

26

360
(96)

355
(95)

142

139

26

25

24

Buses, etc.

326
(87)

Facilities

310
(83)

320
(86)

124

115

122

17

18

20

-14.3%

193

197

195

193

192

184

178

178

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022Upper figure: energy use in 1,000 kl
Figure in parentheses:
index (100 = FY2015 levels)-20% or more

800

774
(100)

750
(97)

736
(95)

700
600

315

298

646
(83)

289

69

68

66

390

384

380

337

100
0

FY2015FY2016FY2017FY2018

Buses, etc.

FY2030(Target)Facilities

479
(62)

458
(59)

177

171

164

45

47

53

289

266

261

241

FY2019FY2020

FY2021

FY2022

63

Virtuallyzero-50% emissions-40.9%

FY2030(Target)Railway
1.4

t-CO2/1,000 km
1.350

1.339

2050
(Target)Buses, etc.

1.179
1.000

1.0

0.943

0.961

0.890

-34.1%
6.6%

0.8 t-CO2/1,000 km
0.6
0.4
0.2
0.0

63

0.754

0.753

0.750

0.757

0.774

0.726

0.751

0.758

t-CO2/m2
0.144

0.137

0.136

0.115

0.093

0.081

0.085

0.070

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Kintetsu Group Integrated Report 2023

① Railway

t-CO2 /1,000 km

1.179

1.000

0.943

0.961

0.890

② Buses, etc.

t-CO2 /1,000 km

0.754

0.753

0.750

0.757

0.774

③ Facilities

t-CO2 /m

0.115

0.093

0.081

0.085

0.070

2

Type

Unit

FY2018FY2019FY2020

FY2021

FY2022

Electricity

MWh1,196,323

1,189,658

1,117,451

1,098,525

1,180,356

City gas

1,000 m3

21,186

19,72016,512

17,02917,556

Propane

ｔ

717

702

579

682

1,169

Kerosene

kl

303

254

245

168

184

Fuel oil

kl

7,629

7,394

6,839

6,117

5,785

Gasoline

kl

1,574

1,758

1,581

1,867

2,605

Light oilkl

17,524

17,264

17,13417,75731,022

Cold water

GJ

169,089

155,245

148,058

127,347

142,314

Total (amount of heat)

GJ

14,171,606

14,005,194

12,917,016

12,748,502

14,097,036

Total (crude oil equivalent)kl

365,627

361,334

333,259

328,911363,704

Facilities

1.324

1.2

FY2022Upper figure: emissions in 1,000 t-CO2
Figure in parentheses:
index (100 = FY2015 levels)

CO2 emissions (intensity): Railway and buses (per vehicle trip), Facilities (per floor area)
1.6

FY2021

FY2022■E nergy use (total of consolidated subsidiaries)
487
(63)

202

67

300
200

555
(72)

242

500
400

Railway

FY2020

FY2021

・CO2 emissions refer to those reported by each company to the Ministry of Land, Infrastructure, Transport and Tourism or the Ministry of Economy, Trade and Industry through periodic
reporting pursuant to the Energy Conservation Act.
(Domestic offices only, according to Energy Conservation Act standards, with overseas offices excluded)・“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; Nara
Kotsu Bus Lines; Kintetsu World Express; and Kintetsu Logistics Systems
・Emissions from Kintetsu World Express and Kintetsu Logistics Systems, both of which became consolidated subsidiaries in 2022, have been factored in since FY2022.
・The total CO2 emissions for these 14 companies make up 95% or more of total emissions by Kintetsu Group Holdings and its consolidated subsidiaries.

CO2 emissions (total) (Scope 1 + 2)
(1,000 t-CO2)

FY2020Our Value Creation Story

191,701

Our Value Creation Strategy

192,850

774,414375(100)

FY2022

kl

t-CO2

373
(100)

FY2021① Railway

FY2015 results(1,000 kl)

FY2020Initiatives for Materiality

CO2 emissions

FY2019FY2030 targets

t-CO2/1,000 km

Total
Intensity (railway)

FY2018Percentage change(compared with
FY2015 levels)

Unit

Energy use (crude oil equivalent)

Unit

Corporate GovernanceIndicator

Energy use (total)

Corporate Information

periodic reporting pursuant to the Energy Conservation Act: 14)

Messages fromTop Management■ Achievement status of the Kintetsu Group Environmental Targets (companies subject to-51.4%

Kintetsu Group Integrated Report 2023

64

■ CO2 emissions by scope (major group companies: 8)

FY2020

FY202153,28546,88140,141

FY2022
77,122

Scope 2 (location-based)

551,456

527,586

477,452

436,259

516,935

Scope 2 (market-based)

450,212361,094

323,042

338,209400,376

Scope 1 + 2 Total (location-based)

609,340

580,871524,333

476,400

594,057

Scope 1 + 2 Total (market-based)

508,096414,379

369,923

378,350

477,498

Scope 3

132,916

156,454

108,976

104,927

1,379,011* Scope 3 emissions in FY2022 increased dramatically, with the calculation range expanding, not including emissions from overseas offices.
* The results in FY2018-2021 are the total emissions from the four major Kintetsu Group companies (Kintetsu Railway, Kintetsu Real Estate, Kintetsu Department Store, and Kintetsu

Promoting the environmental advantage of railways
The railway industry is making concerted efforts to promote
the environmental advantage of railways, using an industrywide logo and slogan adopted in autumn 2023. The industry is
specifically committed to promoting changes in behavior andrailway transportation to help reduce CO2
emissions from the transportation sector
and achieve decarbonization in society.
Promoting joint passenger-freight transport
Kintetsu Railway and companies located along its service
lines are using empty space on trains to promote joint
passenger-freight transport to reduce CO2 emissions, delivering
fresh products, alleviating driver shortages, and ensuring stable
distribution. This started in 2021 with small freight transport
between Nagoya and Osaka, with thescope expanding to include delivery
of morning-harvested vegetables from
Yoshino to Osaka, akafuku mochi from
Ise to Nagoya, and fresh seafood from
Matsusaka to Osaka.

Miyako Hotels International), which account for about 80% of emissions from the entire Kintetsu Group.

* The results in FY2022 are the total emissions from the above-mentioned companies, plus emissions from Kintetsu Retailing, Kinsho Store, and Kintetsu World Express Group companies
at home and abroad (Kintetsu World Express, Kintetsu Logistics Systems, etc.), which together account for about 85% of emissions from businesses subject to the Kintetsu Group
Environmental Targets.
* Location-based emissions are calculated using a common CO2 emission factor set by each country for electricity.
* Market-based emissions are calculated using a CO2 emission factor from the company from which electricity is sourced.
* The figures in the table represents figures submitted to CDP.
While the Kintetsu Group Environmental Targets apply to 14 companies (specific emission-intensive businesses) subject to the Energy Conservation Act, the response to CDP only covers
the above-mentioned scope (eight companies subject to the Energy Conservation Act, and the Kintetsu World Express Group) due to the response deadline.

Hinotori, Meihan limited express

New general rolling stock (image)■D ecarbonization community development

through partnerships with municipalities

Scope 3 CO2 emissions
Category

Description(Unit: t-CO2)
FY2022

1

Products and services purchased

2

Capital goods

161,228

3

Fuel and energy activities not includedin Scope 1 + 2 emissions

72,754

4Transport, distribution (upstream)

1,300
10,658report on greenhouse gas emissions, etc.

1,057,928

5

Waste produced in business activities

6

Business trips

1,819

7

Employees’ commuting

3,553
5,725

8

Leased assets (upstream)

9

Transport, distribution (downstream)

0

10

Processing of products sold

011

Use of products sold

012

Disposal of products sold0

13

Leased assets (downstream)

Kintetsu World Express was endorsed by SGS Japan in
December 2022 for its greenhouse gas emissions and energy
use in fiscal 2021, based on verification through the ISO
14064-3:2019, etc.
Verification period: April 1, 2021 to March 31, 2022
Verification item:	Scope 1 + 2 greenhouse gas emissions,energy use (Kintetsu World Express only)

64,046

14

Franchises

015

Investment

0

Total

■E
 ndorsed through a third-party verification

1,379,011■ Information disclosure though response to CDP
CDP, a nonprofit charity comprising institutional investors at home and abroad, runs a disclosure system for companies
worldwide, requesting provision of information on details regarding climate change risks and opportunities, countermeasurestrategies, greenhouse gas emissions, etc. Our responses to CDP started in 2010 for information disclosure purposes. In Japan,
CDP currently (as of 2023) covers companies listed in the prime market, with its questionnaires primarily covering topics suchas “climate change,” “forests,” and “water.” Our response concerns
2018
2019
2020
2021
2022
“climate change.” The questionnaires on “climate change” are in linewith disclosure requirements mandated by TCFD.
C
B
B
B
B

65

Kintetsu Group Integrated Report 2023

Kintetsu Railway and Yao City signed a Local Community
Vitalization Partnership Agreement in October 2023 to cooperatein “decarbonization community development.” This agreement,
among others, aims toward a “zero-carbon Yao City,”
encouraging the use ofrailways and bicycles andconservation of the naturalenvironment around Mt.
Takayasu.

■ Using large-capacity storage battery

systems during a power crunch

Kintetsu Railway uses a large-capacity storage battery systemat the Higashihanazono substation to participate in a demandresponse program led by the Kansai Electric Power Company,
which provides stable electricity supplies on a social level.
Specifically, large-capacity storage batteries are used during
power crunches for peak-cut purposes. These batteries canpower about 2,000 households for a maximum of three hours.

Bus and taxi initiatives■O perating large electric buses■ Introducing electric buses

Kintetsu Bus started operating five large electric buses in March2023 in Osaka, Higashiosaka, and Ibaraki, following two small
electric buses introduced in fiscal 2021. The buses are CO2
emission-free during operation, and can reduce 100 metric tons of
CO2 per year compared to dieselpowered buses. In times of disasters,
moreover, their large batteries canserve as emergency power sources.
Six more electric buses will be
introduced in fiscal 2023.

Nara Kotsu Bus Lines and the Nara Prefectural Government
jointly introduced two small electric buses in March 2023 forthe “Grutto bus line,” etc., which visit tourist sites in Nara. They
are free of engine vibrations, shift shocks, and tailpipe
emissions such as CO2, providing
a smooth, quiet ride.

Large electric bus

Our Value Creation Story

FY201957,884

Energy-saving initiatives at Kintetsu Railway include aswitch to station/railcar-interior LED lighting and energyefficient railcars. As of the end of March 2023, 96.7% of
station lighting has been replaced with LEDs and energyefficient railcars account for 64% of the rolling stock (1,207
out of 1,877 railcars, with extremely energy-efficient VVVF
railcars totaling 974, accounting for 52% of the rolling stock). In
addition, a new type of railcar that consumes about 45% lesselectricity than conventional counterparts will be introducedin autumn of 2024; about 80 new railcars are scheduled to bein operation by fiscal 2025, replacing old types, followed bysystematic upgrading.

Our Value Creation Strategy

FY2018
Scope 1■P
 romoting a modal shift

Initiatives for Materiality

Four major companies■ Introducing a new fleet of rolling stock

Corporate Governance(Unit: t-CO2)
Eight major
companies +KWE Group

Railway initiatives

Corporate Information

The CO2 emissions produced by the Kintetsu Group are split into three categories: Scope 1 (direct emissions from fuel use),
Scope 2 (indirect emissions from electricity and other energy usage), and Scope 3 (indirect emissions from supply chains). “Supply
chain” refers to the linked processes to 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.
Companies subject to Scope 3 reporting increased in fiscal 2022, with the calculation range expanding.

Messages fromTop Management

3 Energy-Saving and CO2 Reduction Initiatives

Small electric buses■ Introducing electric taxis
Nagoya Kintetsu Taxi introduced 10 electric taxis in April 2023, each equipped with a 60 kWh battery,running 450 km on a single charge. In addition, a fast charger and five standard chargers were installedat the Kanie business office. Prior to their introduction, the company participated in the Taxi Industry GX
Project and received a subsidy from the Green Innovation (GI) Fund: Building Smart Mobility Society,where a fleet of electric taxis were introduced for the first time in Aichi Prefecture, subsidized by the fund.

Electric taxis

Kintetsu Group Integrated Report 2023

66

35％

63,292 t■C ontainer round use / container matching services
For ocean transport, we are promoting container round use (where unloaded empty containers are used directly for exports
without returning them to container yards or ports) and container matching services (where empty containers and export cargo arematched for optimization). This reduces CO2 emissions and eliminates the cost of shipping back empty containers.
How container matching services work

FY2022

FY2030■ A “virtual 100% switch” to renewable energy completed at all domestic business locationsin accordance with their electricity needs

Following arrival, containers are unloaded at the customer site A.

Kintetsu World Express purchased a FIT non-fossil fuel certificate*1 in March 2023, equipped with tracking
information (29 million kWh), where a “virtual 100% switch” to renewable energy was completed at all domestic
business locations in accordance with their electricity needs. This virtually eliminated 11,600 metric tons*2 of
Scope 2 CO2 emissions originating from electricity consumption in fiscal 2022. These initiatives are expected
to significantly reduce CO2 emissions from domestic operations, with efforts underway to lower environmental
impact by further reducing CO2 emissions at home and abroad.
*1: A non-fossil fuel certificate for the “non-fossil value” inherent in green electricity produced by non-fossil energy sources such as solar, wind, and biomass

Unloaded empty containers are forwarded to the customer site B and optimally matchedwith export cargo.

Real estate, hotel, and travel agency business initiatives■ Special award received at the Osaka

power, equipped with tracking information on power sources, power plant locations, etc.

*2: C alculated based on each electricity company’s adjusted emission factor

Climate Change Action Awards

Renewable energy certificate■ Green power certificate■P romoting rail transport

Misato Green Warehouse, a Kintetsu World Express
domestic logistics hub, started a green power system*1 topurchase again a green power certificate (1.2 million kWhequivalent) in 2022. This facility was previously certified with
the ISO 14001, which specifies requirements for effective
environmental management and pollution
prevention systems, and its roof/wall
greening and LED lighting system resulted
in acquisition of the LEED certificate*2.
*1: A system where the environmental added value ofRail transport, which is less emission intensive than air, ocean,and truck transport, is an effective means to reduce CO2 emissions.
Kintetsu World Express (KWE) started providing distribution
services in May 2021, using domestic rail transport in an effort to
reduce environmental load and secure transport capacity.
For example, KWE proposed a modal shift from trucks torailways for its customers in Niigata Prefecture in a tie-up withJapan Freight Railway Company, where imports are transported
from Tokyo Bay to warehouses in Niigata Prefecture, taking
into account the 2024 problem* and an increased awarenessof transport decarbonization. As a result, CO2 emissions werereduced by about 75% from previous levels with the adoption of
the proposal.
* 2024 problem: A range of problems that distribution services need to address, to beelectricity produced by renewable energy is traded in theform of a “green power certificate”
2:* A certification system developed by the U.S. Green
Building Council for evaluation of “building operation,” “siteoperation,” and “energy-saving effects”

Green power certificate

caused in part by work style reform laws, which limit drivers’ work hours■ Promoting the use of sustainable aviation fuel (SAF)
Air carriers have been promoting the use of sustainableaviation fuel (SAF) since September 2021. We took part in the
SAF program participated in by three air carriers (All Nippon
Airways, Cathay Pacific Airways, and Lufthansa Airlines) anda fueling company in fiscal 2022.
Sustainable aviation fuel (SAF) produces about 80%
fewer CO2 emissions through its lifecycle compared to67

Kintetsu Group Integrated Report 2023

conventional aviation fuel, from production and collection of
raw materials (biomass, used cooking oil, exhaust gas, etc.)
to manufacturing and combustion, making it a very effectivemeans to reduce CO2 emissions. We will continue to opt for
cargo flights powered by SAF in cooperation with stakeholders
for sustainable air cargo transport.

The Laurel Court Momoyamadai the Residence, acondominium built by Kintetsu Real Estate, received a special
award in April 2023 at the 2022 Osaka Climate Change Action
Awards, sponsored by the Osaka Prefectural Government.
The award is granted to recognize building owners andarchitects who demonstrate the best practices in constructing
buildings that alleviate heat island effects. The condominium,
certified as “ZEH-M Oriented,” has premises planted withtrees and shrubs providing
shade through layout planningand features high-efficiency
facilities. The properties wererecognized for measures takenthat reduce heat radiation to theatmosphere.
Appearance■S olar power generation
Kintetsu Real Estate generates a total of about 30 million
kWh a year at four locations in Mie Prefecture (Iga, Shima, Ise,and Nabari), one in Nara Prefecture (Oyodo-cho) and one in
Oita Prefecture (Oita City) to power about 6,000 households.
Likewise, Sanko Real Estate generates a total of about 140
million kWh a year at 33 locations primarily in Mie Prefecture,including Ise-Futami Megasolar “Hikari no Machi,” to power
about 38,900 households.

■M arketing a carbon offset travel plan
Kintetsu Miyako Hotels International and Kinki Nippon
Tourist jointly launched a travel plan in June 2022 that
contributes to global environmental conservation, where“carbon offset mechanisms” are used to offset (compensate)
GHG emissions (CO2 emissions, etc.) originating fromtransportation and accommodation during travel. Specifically,
forest-derived carbon credits, certified by the J-Credit
scheme administered by the general incorporated association
More Trees, are used to offset CO2 emissions.

■V irtual switch to renewable energy at

rent-a-car offices

Kintetsu Rent-A Lease purchased FIT non-fossil fuelcertificates in December 2023 through ORIX Auto Corporation;
electricity used between April and September 2023 at 15 outof the 18 ORIX rent-a-car offices it operates was virtuallysourced from renewable energy. As a result, electricity use
achieved net-zero CO2 emissions (about 25 metric tons). Thisinitiative will be continued.

Kintetsu Group Integrated Report 2023

Our Value Creation Story−34,080 t

HVO-powered truck transport

Our Value Creation Strategy

97,372 t

CO2 emissions
reductions

Initiatives for Materiality

2050
Carbon neutrality

Corporate Governance

Since its establishment 75 years ago, the Kintetsu World Express (KWE) Group has been growing
with its international forwarding business, with a global network consisting of 683 business locationsin 300 cities in 45 countries (as of March 31, 2023). The group is now working on short-, medium-,and long-term initiatives to achieve carbon neutrality by 2050.
The KWE Group set fiscal 2030 reduction targets for CO2 emissions (Scope 1 + 2 emissions) inAugust 2023 for its domestic and overseas operations—i.e., a 35% reduction from fiscal 2022 levels.
Accordingly, a commitment letter was submitted to and received by SBTi in October 2023 to havethe targets certified as “science-based targets.”
CO2 emissions (Scope 1 + 2 emissions) from overseas business locations are also scheduled forverification by third parties and Scope 3 emissions, too, will be dealt with on a consolidated basis,
with focuses on collecting data, acquiring third-party verification, and setting reduction targets.
The KWE Group is gearing up to achieve its long-term target (carbon neutrality by 2050) througha range of initiatives.

FY2030 reduction targets(from FY2022 levels,
Scope 1 + 2 emissions)

We are expanding the use of hydrogenated vegetable oil (HVO) for truck transport. HVO, which
is made from vegetable oil and used cooking oil, is a renewable, sustainable, and fossil-fuel free
fuel that can reduce GHG emissions by a maximum of 90% compared to ordinary fuels. Use is thus
becoming widespread primarily in Europe. In fact, KWE Benelux started providing HVO-powered
truck transportation services in February 2023 for major high-tech customers, resulting in a 90%
reduction in GHG emissions.

Corporate Information

35％■ Setting KWE Group’s CO2 emissions reduction targets (Scope 1 + 2 emissions)

Messages fromTop Management■U sing hydrogenated vegetable oil (HVO) for truck transport

International logistics initiatives (Kintetsu World Express Group)

68Groupcompany

Groupcompany

Groupcompany• Increased cost due to the carbon tax

Climate-change-related risk management

Railways

High

Real estateHigh

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

CSR Committee
The CSR Committee comprising the Kintetsu Group
Holdings president and executives and major groupcompanies’ executives manages CSR-related issues (ESG
including climate change strategies) and finds solutions froma long-term perspective while setting climate change policies
and targets, overseeing their implementation and evaluating
the risks and opportunities involved. Likewise, major groupcompanies evaluate their own climate change risks andopportunities, with the results and countermeasures reported
to, and evaluated and overseen by the CSR Committee andits members.
Countermeasures exceeding a certain amount, meanwhile,
are reviewed by the Board of Directors, along with thosefeaturing energy conservation, which contributes to climatechange mitigation. An appropriate management systemis thus in place, with the CSR Committee and the Board of
Directors overseeing the whole procedure.

• Introduction of energy-saving railcars and facilities• Promoting properties with excellent environmental

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

implementation and maintenanceInternational
logistics

High–
Low

• Switching to eco-cars and electric forklifts• Switching to electricity derived from renewable energy• Passing additional costs onto freight charges in an

RailwaysHigh• Optimal combination of energy sources• Increased energy cost due to policies promoting

renewable energy and energy saving (renewable energy
surcharge, etc.)

Real estate
Merchandise
sales
HotelsHigh• Promoting energy-saving measures such as energy-saving equipment to be installed at stores and facilities• Improving environmental performance by replacing• Increased construction cost due to more stringent energy

efficiency standards for new construction and renovation,
ZEB requirements for newly constructed buildings and
ZEH requirements for newly constructed condominiums
and houses• Regulations to encourage the use of transportation andaccommodation with less CO2 emissions

High

Travel agency

High• Planning and offering tours with less CO 2 emissions

High• Proactive approach to subsidy systems• Increased energy cost due to higher crude oil prices• Unstable power supply due to a change in the energy mix(increased use of renewable energy)

Railways• Increased material cost due to the environmental costModerate• Introduction of large-scale storage batteries

Moderate• Optimization of facility requirements and renewal plans• Early detection and repair of failures

Market• Developing ocean and rail transport services to• Revenue loss due to growth in rail and ocean transport,with the shift to eco-friendly transport accelerating• Increased cost of introducing new technology (low-carbon

technology, energy-saving technology, etc.)

Technology

International
logistics

High–
Moderate

Railways

Moderate• Increased operation costs due to introduction of next-

generation aircraft, vessels, and vehicles• Development and supply of new forms of fuel (SAF,

biofuel, etc.): Decreased usage rates and increased
purchasing costs due to supply shortages

International
logistics

High–
Low

Moderate

addressing environmental issues

Railways• Difficulties in financing due to loss of reputation withratings, revenue loss due to failure in participating in bids,
possible impact on recruiting• Detailed examination of new technology that takes into

account cost and performance

Messages fromTop Management

SAF in the market• Reaching out to the government and affiliatedorganizations, making industry-wide efforts to increase
the adoption rate

• Enhanced promotion of the environmental advantage ofrailways• Provision of safe, punctual transportation services• Disclosure of information on progress on environmental

Moderate

investors• Loss of orders due to low environmental performanceaccommodate customers’ needs, creating businessmodels in response to changes in the market• Utilizing SAF and developing eco-friendly air transport
products in cooperation with air carriers.
• Utilizing AI to develop CO 2 emission reduction routes
and transportation• Proactively participating in SAF programs to promote• Loss of reputation with customers due to delay in

Reputation

lighting in common areas with their LED counterparts
and by upgrading facilities• Reviewing possibilities of complying with ZEB
requirements for new construction and of leveraging
renewable energy• Opting for decarbonized products (ZEH, etc.) whenbuilding houses

Real estate

passed on by suppliers

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

High

Risk management measuresappropriate way

Policies,
laws andregulations

Transition risks

Company-wide risk management

Impact• Setting GHG emission reduction targets, followed by■ Climate-change-related risk management
Each company and division identify and evaluate climate change risks, from company-wide to divisional, at various levels whilecritical risks are discussed by the Board of Directors, etc.

Business
category

Our Value Creation Story

Chairman: Kintetsu Group Holdings president
Vice-chairman: Kintetsu Group Holdings executives incharge of CSR
Committee members: Kintetsu Group Holdings
executives and major group companies’ executives incharge of CSR
Secretariat: Corporate Strategy Division

Risk descriptions

Our Value Creation Strategy

CSR Committee

Climate change-related risks

Initiatives for Materiality

Kintetsu Group Holdings Co., Ltd.
Board of Directors

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

The CSR Committee lays out a policy, based on which we conduct qualitative analysis at major group companies assuming a
2°C world and a 4°C world respectively, address climate change risks and opportunities and determine how we can best utilize
these opportunities.
In addition, Kintetsu Railway conducts quantitative analysis on risks with significant impacts.

Corporate Governance■ Climate-change-related governance■C limate strategies

targets• Endorsing TCFD recommendations, responding toCorporate Information

4 Information Disclosure Related to TCFD

information disclosure requirements and CDP

International
logistics

High–
Low

• Making efforts for higher customer evaluation by

aggressively incorporating environmental measures into
the corporate strategy■ Indicators and targets
With the Kintetsu Group Environmental Targets for fiscal 2021 to 2030 in place, the Kintetsu Group is stepping up efforts to
reduce its energy use and CO2 emissions. (See pp. 61–65.)

69

Kintetsu Group Integrated Report 2023

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70

High

becoming unusable due to sea-level rise

• Decreased availability of related facilities

Chronic risks(temperaturerises)

International
logistics• Food poisoning risks, etc.
• Employees’ health management risks

Low–
High

High

Merchandisesales• Decreased crop yield due to heat waves, etc., increased
Hotelscosts of raw materials and fresh food, increased risks in
product procurement (quality loss, etc.)

Low• Upgrading the EC shopping site
• Increased needs for properties with excellent environmental

performance (low-carbon construction, etc.)

disasters in cooperation with customers and authorities
concerned• Putting a rigorous risk management system in placethrough effective partnership with the KWE Group risk
management committee• Strict food hygiene practices• Improving employees’ health management andoptimizing working hours

to hot weather, etc.

HotelsModerate
Travel agency

Products& services

forms of fuel (SAF, biofuel, etc.); decreased costs in complying
with regulations such as carbon taxes

through increased partnerships with local communities
and farmers

High

scale disasterPhysical risks

Real estate

Merchandise
sales

Low

Low

• Better preparing for floods and other disasters by• Revenue loss due to decreased material flow and

Acute risks(increasingly
severedisaster)possible increases in recovery costs, both attributable
to difficulties in providing distribution services• Temporary closing of stores to ensure the safety ofcustomers and employees, following suspension of
public transport operations• Disruption in distribution networks and business atstores due to damage at facilities (of their own and of
suppliers), impassable roads, etc.

• Disruption in power supply from power companies• Typhoons and heavy rain preventing customers fromarriving on time or leaving them stranded• Loss of opportunities to provide travel programs due toserious natural disasters

International
logistics

Merchandise
sales

Railways

Low–
High

High–
Low

Moderate

Merchandise
sales

Low

Railways

Moderate

HotelsLow

Travel agency

Low• Diversification of electricity suppliers (including private

71• Decreased energy cost due to optimized energy procurement

Kintetsu Group Integrated Report 2023

Railways

International
logistics

customers’ needs and creating business models in response tochanges in the market• Utilizing SAF and developing eco-friendly air transport products incooperation with air carriers.
• Utilizing AI to develop CO 2 emission reduction routes and transportation• Strengthening partnerships among the Kintetsu Group companies

Hotelsand increasing the convenience and amenity of access to hotels

locations such as station premises, each of which are notaffected so much by weather• Opening stores at convenient locations through enhanced

partnerships among the Kintetsu Group companies• Optimum arrangement of station facilities and stores• Developing markets in response to changing lifestyles, withcustomers’ awareness of sustainability in mind

• Offering purchasing options that allow customers to buy what

Merchandise
sales• Expanding EC sales• Increasing the number of stores featuring online supermarkets• Increasing the number of mobile supermarkets

they want without visiting stores• Providing shopping opportunities near residences using mobile

supermarkets (to eliminate the need to go out shopping on
extremely hot days)

Railways• Reinforcement construction to be prepared for large-scale disaster• Quick restoration/reconstruction from disaster (quick resumption ofTravel agency• Developing products using IT such as VR to provide virtual experience• Increased customer confidence through construction to

Resilience

prevent damage caused by storm and flood• Developing products by leveraging areas and methods that are

not affected by climate change• Offering eco-friendly products and services

services)

power generation and multiple power companies)

Business impact assessment (railway business)• Introducing large-capacity storage batteries

development, BPO, etc.)

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

natural disasters

Additional costs of the impacts (annual)• Developing emergency response manuals andconducting regular drills• Developing an advanced BCP to prepare for serious• Mobilization of large-scale storage batteries and modification of thecompany’s transmission systems• Introduction of renewable energy facilities

Transition risks

Opportunity utilization policy• Introduction of energy-saving railcars and facilities• Proactive approach to subsidy systems

consumption• Policies promoting renewable energy and energy saving• Information disclosure related to TCFD

advantage of railways• Opening stores near or adjacent to stations, or at convenient

Physicalrisks

Energysources• Development of energy-saving technology to reduce electricity

local communities• Policy-based promotion of the use of railways

Railways• Creating supplier portfolios

Climate change opportunities

Resource
efficiency

packages• Expansion of secondary transportation directly linked with railways• Development of cities along the railway lines in collaboration with

Marketconfirmation systems• Promoting information collection and communication,with a better emergency-contact network in place• Increasing revenue in non-travel businesses (community

Business
category• Planning and sale of tours with less CO 2 emissions• Offering new ways to enjoy resort life and developing new travel• Participation in the carbon market, leveraging the environmental• Developing new services and expanding business areas

Item

Descriptions of opportunities and advantages

HotelsTravel agency• Developing ocean and rail transportation services to accommodate• Developing crisis management manuals• Collecting and communicating information using safety

essential commodities, which impacts train service
operations

Merchandisesales• Vitalization of the carbon market

promoting cooperation with maintenance companies (oftheir own and of contractors) for proprietary logistics
warehouses and with lenders for their warehouses• Creating a reliable distribution network by selecting
alternative facilities and routes for forwarding
warehouses• Putting a rigorous risk management system in placethrough cooperation with the KWE Group risk
management committee• Double-track construction to bolster the supply chain of• Increased demand for protection against heat and cold
• Sale of emergency response kitsstrategy for better feedback from customers• Increased green investment• Minimizing property damage or loss by moving up

closing times and implementing prevention measuresagainst shattering, etc.

promoting products and services in the market• Reaching out to the government and affiliated organizations, making• Setting up special corners• Expanding overall sales through external sales and EC shopping sites• Preventing stockout situations

for compact, clean urban development to stimulate demand(accelerated shift to smart cities and MaaS)

buildings• Assessing flood damage risks, etc. through surveys,
designing structures based on flood hazard maps, etc.
and providing secure housing by establishing electricrooms at higher elevations• Improving soil quality through day-to-day management or
during restoration/maintenance work

• Proactively participating in SAF programs and increasing effort inindustry-wide efforts to increase the usage rate

• Policies emphasizing public transportation systems designed

precipitation and river levels)

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

products and services based on cost performance

International
logistics• Aggressively incorporating environmental measures into the corporate

warming• Effecting corporate property blanket insurance for rental• Damage, including flood damage, to facilities due todeveloping new technology• Increased orders and revenue brought about by higher• Increased demand for eco-friendly products and services• Resort hotels available for a longer period due to global• Development of railway facilities monitoring systems (forin existing buildings and facilities with LED counterparts andupgrading facilities• Reviewing possibilities of complying with ZEB requirements for new
construction and of utilizing renewable energy• Participating in pilot programs and discussing introduction ofenvironmental performance ratings

destination changes (travel package development, factoringin ecological changes and new ocean/air routes)• Developing unique travel packages (themed tours, etc.)
and those featuring environmental sustainability• Building super-insulated houses• Adopting products with excellent environmental performance (ZEH, etc.)• Improving environmental performance by replacing lighting systems• Developing investment plans, taking social trends into account andaircraft, vessels, and vehicles; decreased costs in complying
with regulations such as carbon taxes• Fewer GHG emissions due to development and supply of new• Creating supplier portfolios• Ensuring stable supply and reaching new customers• Reinforcement construction to be prepared for large-

Railways

Real estate• Fewer GHG emissions due to introduction of next-generation• Tour development tailor-made to tourist seasons and• Decreased desire to travel and destination changes due• Enhanced communication of the environmental advantage of railways• Introduction and promotion of energy-saving railcars

environmental awareness of consumers (increasing modal shift
from automobiles to trains)developing tourism and providing attractive
transportation services• Improving capabilities to deal with floods and other• Risks of ports, harbors, and airports in low-lying areas

Railways• Increased demand for railway transportation due to increased• Promotion of measures to encourage outings by

Messages fromTop Management

Merchandise
sales

Opportunity utilization policy

Our Value Creation Story

Moderate

Business
category

Our Value Creation Strategy• Decreased customer traffic due to hot weather, etc.

Railways

Descriptions of opportunities and advantages

Risk management measures

Initiatives for Materiality

more customers staying at home and inbound tourists
decreasing)

ImpactCorporate Governance• Decreased operating revenue due to hot weather (withBusiness
category

2030

2050

Remarks

2°C

4°C

2°C

4°C

+5 billion yen

ー

*

ー

Increased renewable energy
surcharge+2 billion yen+1 billion yen

ーー

Increased crude oil prices+1 billion yen+3 billion yen+0.5 billion yen+3 billion yen

Calculated, taking into account Japan’s future power
generation mix in addition to higher crude oil prices+0.15 billion yen +0.3 billion yen+0.3 billion yen+0.9 billion yen+0.2 billion yen+0.4 billion yen+1.2 billion yen

Calculated, taking into account damage to facilities causedby storm and flood (averaged over the past decade) and theresulting loss of revenue

Burden of the carbon tax

Corporate Information

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

Increased electric bill

Impacts of storm and flood
Amount of damage tofacilities
Decreased revenue due tosuspended operations+0.4 billion yen

Kintetsu Group Integrated Report 2023

72

FY2020

FY2021

FY2022

20,712

18,45312,092

22,402

Clean water

1,000 m

3

4,651

4,470

3,527

3,540

3,716

Recycled water

1,000 m3

205

192

182

105

94

Groundwater

1,000 m3

1,094

1,084

865

797

695

Total water(Clean water + Recycled water)

1,000 m3

4,856

4,662

3,709

3,646

3,810

■ Waste amount

General waste

Unit

FY2018FY2019FY2020

FY2021

FY2022

Metric tons

28,434

21,85827,71026,401

27,896

Industrial waste

Metric tons

83,63960,33032,22349,79521,061

Total

Metric tons

112,073

82,18859,93376,196

48,957* Total amount of Kintetsu Group Holdings and its consolidated subsidiaries whose wastes are available (FY2022: 28 companies for general waste and 26 companies for industrial waste).

■C offee galette made from extracted■W ater dispensers on every floor

Miyako Hotels International’s Miyako City Osaka Tennoji,
likewise, has been serving “coffee galette” for breakfast using
extracted coffee grounds since August 2023, where thecoffee grounds are dried and ground again with a mill to be
used as an ingredient. This
process can reduce coffee
ground waste by about 31.2 kg
a year. Extracted coffee grounds
are expected to find more
applications, which will further
reduce waste.

Miyako Hotels International’s Miyako City Osaka Hommachi
is reducing plastic waste. Specifically, plastic bottle mineralwater services to guests were discontinued in April 2023.
Instead, water dispensers are available on every floor, witheach guest room equipped with a water bottle made ofsustainable, recycled plastic. At
the same time, each staff
member is encouraged to bringand use their own hotel-specificoriginal bottle. Miyako City
Osaka Hommachi is putting
forth a great deal of effort toWater bottle at a guest room, designed
reduce plastic waste.
for water dispenser■U sing recycled material for business cards■ KNT-CT Shimanto River Headwaters Forest

The material for the business cards used by Kintetsu World
Express executives and employees in Japan switched in
October 2021 from paper to a new material, LIMEX*, which ismade from limestone. This is expected to reduce water
consumption by 10 liters per pack of business cards (100sheets). Printed LIMEX business cards that would otherwise
be disposed of following personnel changes can be recycled
to make new cards. With each employee using LIMEX businesscards, our awareness of global environmental issues is
expected to grow, which in turn contributes to promoting thegroup’s sustainability activities.
* Developed, manufactured and distributed

Club Tourism International signed a partnership agreementin 2012 with Kochi Prefecture and Tsuno Town on a
Collaborative Forest Conservation Project in Kochi Prefecture,
the prefecture with the densest forests in Japan. KNT-CT
Holdings took over the partnership, where forests in Tsuno
Town are designated as KNT-CT Shimanto River Headwaters
Forests to conduct forest management (thinning) andexchange programs (collaborative thinning).
KNT-CT Holdings received a certificate of appreciationfrom the prefectural governor in December 2022 in recognitionof its 10-year contribution to theproject, such as the Thinning
Experience Tour, which features
forest conservation activities in
the Shimanto River headwaters
forest and exchange with local
communities.

coffee grounds

Coffee galette

General waste (FY2022)
Total of Kintetsu Group Holdings and its consolidated subsidiaries(28 companies)
Waste amount

Recycled amount

27,896 t

12,559 t

General waste

Industrial waste (FY2022)
Total of Kintetsu Group Holdings and its consolidated subsidiaries(26 companies)
Waste amount
Combustion residue
SludgeIndustrial waste
disposal

Recycling

Reuse

Other

0t

0t

0t

0t

0t

3,854 t3,737 t

16 t

0t

101 t

Oil

498 t

376 t

116 t

0t

7t

Acid

39 t

19 t

0t

0t

21 t

Alkaline

10 t

10 t

0t

0t

0t

Plastic

1,201 t1,028 t

34 t

24 t

115 t

Paper

109 t

109 t

0t

0t

0t

Wood

1,273 t1,035 t

72 t

45 t

121 t

2t

1t

1t

0t

0t

128 t

0t

128 t

0t

0t

TextilesPlant waste
Rubber

2t

2t

0t

0t

0t

5,246 t301 t2,412 t179 t2,355 tGlass/ceramics

284 t

260 t

21 t

0t

2t

Building waste

7,901 t7,085 t

564 t

244 t

9t

514 t

514 t

0t

0t

0t

21,061 t

14,476 t

3,364 t492 t2,730 t

Metal

Other
Total

Spaghetti Bolognese with soybean meat

by TBM Co., Ltd.

Business card made of new material

The Shimanto River Headwaters Forest

Messages fromTop Management

FY201914,587

Our Value Creation Story

FY201810,000 sheets

Our Value Creation Strategy

Type

Initiatives for Materiality

Unit

Office paper

Some of Kintetsu Miyako Hotels International’s hotels, such as Miyako Hotel Amagasaki, havebeen offering new menu items featuring soybean meat since April 2021. Concerns are growing
over food crises triggered by global warming, where sourcing protein from livestock products may
become difficult. GHG emissions from the livestock sector pose another concern. With healthconsciousness growing among consumers, “soybean meat” is receiving attention as a healthy food.
We are therefore committed to offering flavorful, healthy menu items as part of our contribution tosociety.

Corporate Governance■ Resource input (consolidated subsidiaries: 59)■O ffering menu items featuring soybeans

Corporate Information

5 Resource-Saving, Recycling and Biodiversity Conservation Initiatives■P romoting local produce and reducing the use of plastic products
Kintetsu Retailing has been offering snack menu items since July 2021 at the “Come on met
Bay Terrace Toba,” a restaurant located in the Kintetsu Toba Station building. They feature local
specialties such as Ise-Shima sea lettuce, Ise tea, and Ise yam potatoes. Cherishing the beautyof the sea of Toba, the restaurant is reducing the use of plastic products, opting for paper andwooden packaging materials. In addition, the NPO “mina” started supplying vegetables grown in theMultifunctional Farm Futami in May 2023 as ingredients for some of the items offered.
Come on met Bay Terrace Toba

73

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74

Materiality

FY2022
results

Target year

TargetPercentage of station LED lighting

－

87.7%

96.7%

2030

90% or higher

Percentage of train interior LED lighting

－

34.9%

39.8%

2030

40% or higher

Energy use reduction rate

2013

-9.2%

-9.2%

2030

-20% or higher

Total CO2 emissions (Scope 1 + 2) reduction rate

2013

-39.6%-44.2%

2030-50% or higher

CO2 emissions (intensity) reduction rate

2013

-35.8%-40.5%

2030-50% or higher

Percentage of new condominiums and houses
with thermal insulation Class 4

－

84.6%

99.8%

2023

100%

“High-efficiency equipment” percentage(water heaters, LED lighting, water-saving toilets)

－

100%

100%

2023

100%

Kintetsu World Express

Total CO2 emissions (Scope 1 + 2) reduction rate

2022

ー

ー

2030

-35%

2050

-100%

Kintetsu Department
Store

Greenhouse gas emissions reduction rate

2015

-42.6%-46.8%

2030-50% or higher

2050

-100%

Kinsho Store

Number of stores still using CFC refrigerants (R22)－

14 stores

10 stores

2025

0 stores

Percentage of guest rooms with LED lighting

－

－

67%

2030

80%

Number of eco-accommodations

－

－

－

2023

10%

Kintetsu Railway

Kintetsu Real Estate

Kintetsu Miyako Hotels
International■ Fundamental Policy on Human Resources of the Kintetsu Group (human resource

development and work environment improvement policy)

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

1

Hiring andfostering thedevelopment of
individuals withdrive, ability
and character

Company

Kintetsu Department
Store

Key Performance Indicator (KPI)

Kintetsu Miyako Hotels
International

FY2021
results

FY2022
results

Target year

TargetAmount of food loss

2019

-26.9%-25.7%

2030-20%

Food recycling rate

－

19.6%

17.9%

2030

50%

Percentage of eco-friendly packaging materials

－

4.4%

7.7%

2030

50%

Food loss volume

2018-26.5%-27.4%

2030-40%

Food wastage rate

－

1.3%

1.15%

2030

Below 1.0%

Food wastage rate

－

0.42%

0.42%

2030

0.36%

Number of hotels using foodstuff withsustainability certificates－

2 facilities

9 facilities

2022

7 facilities

2021

－

-23%

2024

-50%

Kintetsu Retailing
Kinsho Store

Baseline
fiscal year

Reduction rate of designated plastic amenities
per guest
Tours to raise awareness of environmental
friendliness and natural conservation

KNT-CT Holdings

Ensuring Diversity■ Resource-saving, recycling, biodiversity conservation indicators and targets (KPIs)

Recruitment

Taking advantage of strong cooperation within the Group, we have adopted flexible
hiring practices in line with the needs of each group company based on their businessstrategy. The aim is to hire diverse personnel, regardless of whether they are fresh outof college or switching jobs mid-career.
・Boosting recruitment of female employees and mid-career hires to ensure diversity
・Boosting recruitment of digital specialists to advance DX・Utilization of cooperation within the Group and a Group recruiting website to compete
in a highly competitive jobs market

2

Development

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

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

3

Creating a Positive Work Environment

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

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

Health and Safety

Our Value Creation Story

1 Human Capital

FY2021
results

Our Value Creation Strategy

Baseline
fiscal year

Initiatives for Materiality

Key Performance Indicator (KPI)

Corporate Governance

Company

Corporate Information■ Energy-saving and CO2 reduction indicators and targets (KPIs)

Messages fromTop Management

Fostering Diverse Human Resources andSupporting Their Activities

6 Environmental Indexes and Targets (for each group company)

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

Number of participants in green tourism－－

9,625 users

2024

10,000 users

Number of participants in eco-tourism－－

4,125 users

2024

10,000 users

Number of Blue Planet accommodation
facilities and products－－

183 facilities
87 products

2024

400 facilities
150 products

・Establishment of a health and productivity management framework and Health

Number of J-credit users－－

3,082 users

2024

6,000 users

・Further advancement of occupational health and safety measures to eliminate

Management Center to help maintain the mental and physical health of our employees
work-related accidents

75

Kintetsu Group Integrated Report 2023

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76

■ Cooperation within the Kintetsu Group

1-1 Recruitment

Number of male employees
Female employee ratio
50,000

50％

44.9%

43.0%

Number of male managers
Female manager ratio

44.0%

40％

14,30431.8%

30,000

6,000

60％

1,162

5,000

50％

4,000

40％

30％
3,000

20,000

11,48812,447

11,5002,000

30,681
10,000015,243

FY201815,260FY201910％
14,65014,163

FY2020

FY2022

FY2021

Major companies*

0％

20.8%

121

Ratio of foreign nationals(major companies)

Contract employees 6.1%

Non-Japanese 1.3%

8.5%

1,429

1,418

1,423

1,404

FY2018FY2019FY2020

FY2021

Major companies*(regular employees +contract employees)

Ratio by employment status(consolidated)

130
8.7%

8.3%

7.8%

1,000

0

136

129

Consolidated(regular employees + contract employees + part-timers)

Part-time
employees
24.4%

30％
4,427

20％

10,671

FY20220％

Consolidated(regular employees + contract employees + part-timers)(regular employees +contract employees)■ Number of hires, newly graduated hires who left

Number of employees taking childcare leave anduptake among male employees (major companies)
Number of employees taking childcare leave (total)
Percentage of male employees taking childcare leave

380

Japanese 98.7%
300

362

340

37.8%

365

283

200

40％

30％

20％

19.4%

100

7.7%

0

19.2%
50s

35.8%

17.8%
22.1%

* Major companies

FY2019FY2020

FY2021

FY2022

Kintetsu Group Integrated Report 2023

FY2022

Number of hires

4,274

4,438

3,367

2,422

427

Of those, female

2,650

2,817

2,045

1,490

190

Female hire ratio

62.0%

63.5%

60.7%

61.5%

44.5%

729

687

665

336

Of those, number of mid-career
hires

177

212

145

79

89

0％

Proportion of regular employees
who were mid-career hires

27.5%

29.1%

21.1%

11.9%

26.5%

Newly graduated hires who left

214

244

193

287

506

Notes:• FY2022 results• Regular employee base

Prior to 2021: Kintetsu Group Holdings, Kintetsu Railway, Kintetsu Real Estate, Kintetsu Department Store, Kintetsu Retailing, Kinsho Store, Kintetsu Miyako Hotels International,
and KNT-CT Holdings Group’s major companies.
In fiscal 2022, Kintetsu World Express was added to the above list.

77

FY2021643

Note: The percentage of male employees taking childcare leave does not include
Kintetsu Miyako Hotels International, the KNT-CT Holdings Group (up to fiscal
2021), and Kinsho Store (up to fiscal 2020).

30s

40s

FY2018FY2020

Number of regular employees
hired

3.9%

20s andunder

FY201910％

12.6%

60s and over 5.1%

FY201850％

400

Ratio by age(major companies)

20％

10％

500

Regularemployees
69.5%

One main measure identified in the Kintetsu Group
Medium-Term Management Plan 2024 is “creating new
businesses and services through DX,” a part of which is
the goal to expand businesses online to offer real-world
attractiveness in each business area. To achieve this, KintetsuGroup Holdings has set up a recruitment framework for new
graduates to utilize their specialized knowledge and skills in
the field of information technology in developing a DX visionand strategy for group companies and the Kintetsu Group asa whole. In mid-career recruitment, we are hiring individuals
capable of immediately drawing upon their experience in IT
and DX as candidates for future management positions.

resources for DX

Number of female managers

43.0%

40,000For the Kintetsu Group to grow sustainably by providing
diverse value to our customers, we believe it is essential tohave a wide range of employees who possess disparate
knowledge, experience, and personality traits. We hire midcareer people to bring in a new perspective and are currently
working to hire more female employees to make up for pastpolicies. There is a low percentage of female employees at
Kintetsu Railway, for example, because the company used tohave a policy prohibiting women from working late at night.
In addition, throughout the year we carry out new hiring ofpeople with disabilities, regardless of the type of disability, tomeet the mandatory employment ratio and build upon it.

employees

Number of managers and female manager ratio

Number of female employees■S trengthening recruitment of humanInitiatives for Materiality

Number of employees and female employee ratio■ Strengthening recruitment of diverse

Corporate Governance■M ain indicators on human resources

Our Value Creation Strategy

Our Value Creation Story

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

Messages fromTop Management■ Our basic approach

Corporate Information

The Kintetsu Group covers a broad range of business categories and also faces wide-ranging issues related to human resources.
The Kintetsu Group Human Resources Council, composed of the general managers of the human resources divisions at the Group’s
major companies, meets once every two months to exchange information and discuss issues that each company faces such aslabor shortages or excesses and mitigating solutions. Such meetings aim to improve the overall strength of the Group by resolving
personnel issues through knowledge-sharing and the effective utilization of human resources across the Group.
As part of recruitment activities, seminars are held with the Kintetsu Group companies to provide company information and promotegroup discussions. Level-specific training is also conducted with the Kintetsu Group companies to boost employee capabilities—
training aimed at new employees, mid-career employees, managers, and others.

* The number of hires in fiscal 2022 does not include part-time employees.
* The number of “newly graduated hires who left” pertains to those who left within 3 years and are calculated as hires who left regardless of their reason for leaving or theirstatus of employment after leaving (based on the definition provided by the Ministry of Health, Labour and Welfare).

* For fiscal 2018 to 2020, the number of regular employees hired, number of mid-career hires, and proportion of regular employees who were mid-career hires do notinclude figures for the KNT-CT Holdings Group.

Kintetsu Group Integrated Report 2023

78

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

The Kintetsu Group provides systematic training and support for employee self-development and qualifications acquisition to
encourage continued growth on the job. We also encourage self-improvement through a grant system for employees who earnstandard qualifications within the Kintetsu Group.

Main types of training by job role

Kintetsu Group Holdings training system framework (FY2022 results)
Level

Attitude

Grit

Educational support

New general manager training

Junior management training
Management implementation training
Management simulation

New assistant manager training
Growth enhancement
training

Employees
Cross-yearexchanges

Intra-industry exchange

Labor management training
Business skills training(elective)

Correspondence
learning support

Growth enhancement
training

New employee training

Kintetsu Miyako Hotels
International

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

Kintetsu Department Store

Training in outside sales skills, color and visual merchandising, marketing,and consulting sales

Kintetsu Retailing

Seminars to train restaurant managers and head chefs; in-station store
rules training; workshops to improve eel-cooking techniques

Kinsho Store

Basic sales training, customer satisfaction training; store manager
training; store chief training; buyer training

KNT-CT Holdings

Training to improve business negotiation skills; training to improve
questioning and engagement skills; training in logical thinking; business
communication training

Training session on improving hospitality at Kintetsu
Railway

Our Value Creation Strategy

Kintetsu World Express

Training in dangerous goods transported by air; aviation security
systems-related training; customs clearance-related training; overseas
training (employees in their third to seventh year of employment are
dispatched to an overseas subsidiary of Kintetsu World Express for one
year)

1-3 Creating a Positive Work Environment
We believe it is vital to create a positive work environment and strive to improve motivation so that employees are able to reach
their full potential. At each group company, we listen carefully to feedback from our employees. We are enhancing support systems
such as those for balancing work and personal life and are introducing systems that allow for flexible working styles. Other initiatives
include improving motivation by assigning people to positions based on their self-assessments.

Cross-industry exchange■A positive work environment for a diverse range of employees

Management, analytical skills,
marketing, finance &accounting, IT, data analysis

New section headtraining

Sales etiquette training; training to enhance real estate knowledge suchas tax and legal matters; training to improve customer negotiation skills■O ur basic approach

Middle manager training
New manager training

Kintetsu Real EstateGroup-wide training

Intelligence

Managers

Training of train engineer and conductor instructors; training of Service
Care-Fitters; training to improve hospitality, company history on-thejob training (at Joganji Temple and the site of the 1971 Aoyama tunnel
accident); accident and disaster relief training

Initiatives for Materiality

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

Kintetsu Railway

Businessaccounting tests■ Developing human resources for DX

We are expanding our systems and working arrangements to provide an accommodating
work environment for diverse personnel, including flextime and a support system forbalancing work and home life. Kintetsu Railway has set up new satellite offices to make iteasier for employees who commute and to increase work efficiencies. A teleworking system
was introduced at group companies to enable at-home work, thereby supporting a goodwork-life balance. Also, to better utilize the strengths of senior employees, changes arebeing made such as raising the compulsory retirement age in phases and switching toflexible hiring arrangements in our rehiring system. In such ways, we are trying to create apositive work environment that encourages employees to use their experience and abilities
to the fullest, according to their personal circumstances.

Corporate Information

Kintetsu Group Holdings strives to develop talent forleadership by defining the “ideal employees” to be a future
executive in the Group. Development practices include hiring,level-specific training, evaluations, and promotions basedon the requirements defined for each position, covering newhires to general managers. Job rotations across the Groupare emphasized to develop managerial talent at all companies
and a talent management system centralizes information
about employees to offer training and work assignments
based on individual traits, strengths, and weaknesses. We
also focus on supporting growth and stimulating engagement
through 1-on-1 meetings.

Description

Corporate Governance■ Human resource development

Company

Our Value Creation Story■ Our basic approach

Messages fromTop Management■D eveloping and enhancing job role capabilities

1-2 Development

Satellite office (Nabari)

To create new businesses and services through DX, which is one of the main measures defined in the Kintetsu Group MediumTerm Management Plan 2024, we focus on training IT personnel by enrolling them in outside training courses covering such
topics as generative AI and data analysis. Also, we train people in basic IT and DX literacy through a digital skills training program
incorporated into the training of new employees and other level-specific training carried out jointly with the Kintetsu Group to build
business skills.

79

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

80

■ Systems to support working alongside childcare and nursing care

1-4 Health and Safety• Time off for annual paid leave in• Flexible working hours system with noincrements of hours• Expansion of accumulated leave systemcore hours• Leave for fertility treatment■ Employee benefits and social services
The Kintetsu Group features a benefits program that
supports employees in their leisure and private time andpromotes good health. The system includes the use of
the Group’s Health Management Center at no cost to theemployee. In addition to providing medical services, thecenter includes a sports center with a gymnasium, athletic

field, tennis courts, training gym, and other facilities, plus a
company cafeteria. Also, Kintetsu Miyako Hotels Internationalis enhancing its employee benefits beyond providing lodging
discounts to include use of the company’s products andservices, such as lodging, recreation, and resort facilities.

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

Self-assessment system

1-on-1 meetings

Annually, the Human Resources Division gathers information
directly from all employees regarding their working conditions,career aspirations, family situation, etc. The division also
conducts interviews with employees periodically to obtain
more detailed information.
Goals

Managers hold 1-on-1 meetings for their section employees
on a monthly basis. A practical training program for all
manager-level employees is held over a period of several
months on how to listen to section employees in 1-on-1
meetings and boost their motivation.
Goals• The Human Resources Division ascertains the career goals of• To communicate what is expected of a person in their job

each employee directly and will use that information to provide
highly motivating job assignments• To identify and resolve issues that may arise with individuals, atworkplaces, or between superiors and subordinatesrole based on company and division policies and to instill anunderstanding of their mission and the significance of their work
• To improve psychological safety and willingness to contribute
through more active communication, listening, and follow-ups
by supervisors■ Wages of female employees compared to male employeesAllemployees
67.3％

81

RegularNon-regular
employees employees
69.4％

46.1％

Kintetsu Group Integrated Report 2023

* These figures indicate the ratio of women’s to men’s wages with men’s wages set at 100.
* The figures were calculated based on the provisions of the “Act on Promotion of Women’s Participation and Advancement in the
Workplace” (Act No. 64 of 2015) (hereinafter referred to as the “Women’s Participation Promotion Act”).
* The difference in wages between male and female workers largely reflects the difference in average age among all employees(34 for women and 43 for men), whereas women get paid 96.8% of men’s wages among workers under the age of 30. The
reason for the lower average age of women compared to men is that a large proportion of employees are transferees from
Kintetsu Railway, which employed a large number of people required to stay overnight at the company, and up until 1999,
generally prohibited women from working late-night hours, resulting in fewer women being hired. Among non-regular employees(22% female, 78% male), 56.0% are in management positions with relatively high wages, largely reflecting the fact that all of the
managers are men. The hourly wage employment category was calculated at 0.5 employees.

CSR Committee
Chairman: KGH president
Members: Officers of majorgroup companies

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

Health Insurance Association
Information and policy collaboration
Health & Productivity Management
Promotion Secretariat
Secretariat chief: KGH officer responsible
for human resources
Members: KGH Human Resources Division,
occupational health staff

Philosophy

Kintetsu Group Holdings andgroup companies
Target setting Implementationof measures

TargetAdvice measures
recommendation
Labor unions
Gather employee reactions andstudy policy requests
Discussion and information linkages

Employees* Kintetsu Group Holdings = KGH■H ealth and productivity management strategy
Kintetsu Group Holdings and Kintetsu Railway are promoting
health measures based on a strategic chart for health managementthat was created internally. Recruiting good personnel is central tocarrying forward our business reliably and providing safe, dependable
transportation services through which we can fulfill our social
responsibility. As competition for human resources intensifies and theaverage age of employees rises, it has become a critical management

issue to hold down employee turnover and address employee healthissues (which can lead to work loss), aiming to boost the performanceof every employee. By proactively addressing these issues throughhealth management, we hope to create the conditions that allow ouremployees to continue working actively and for a long time with good
physical and mental health, take pride in their work, and feel a senseof belonging and fondness for their workplace.

Investment effects
Health investments

Free healthcheckups for
employees

New healthmanagement
systemHealthcheckups

Indicators related tothe status of healthinvestment measures

Indicators related tochanges in employee
awareness and behavior

Improved nap
rooms

Percentage of nap
rooms made private

Higher percentageof employees who
exercise regularly

Decrease in obesityrate

No-overtimedays andflextime

Reduction of
overtime hours

Improved sleep

Decrease in percentageof employees requiring
medical exams

Annual leavein half-days

Paid leave uptake
sustained orincreased

Athletic
eventsIncreased
participation inathletic events

Infectious
diseaseprevention

Vaccination rates
sustained orincreased

Healthguidance

Increased uptake ofhealth guidance

Mentalhealthcare

Percentage of
employees taking stresschecks maintained

Seminars forquitting
smoking

Increased participationin program for quitting
smoking

Women’sseminars

Higher participation
in women’s seminars

DesiredoutcomeFinal target indicators related to health

Improvedcommunication

Reducedabsenteeism

Lower work absence
rate due toinfectious diseases

Reducedpresenteeism

Higher percentage of
employees aware of needfor diet improvement

Improved
engagement

Lower percentage of
employees who feel
highly stressed

Our Value Creation Story• Annual leave in half-day increments■H ealth and productivity management framework

Our Value Creation Strategy* Excerpted from the initiatives of major companies

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.

Decrease inturnover rate

Issues to beresolved(Anticipated effect)

Healthieremployees

Improved employee
performance

Happier
employees

Talent secured andtransportation
services that aresafe anddependable
sustainably assured

Initiatives for Materiality

Nursery school facility for group employees(Kintetsu Hoikuen Uehommachi)(Created September 2021)

Corporate Governance■ Other initiatives

Kintetsu Group Health & Productivity Management Declaration

Corporate Information

Major initiatives in support systems for balancing work with childcare or nursing care
· Longer childcare leave and shorter working hours beyond legal requirements to facilitate childcare· Establishment of a consultation service and hosting of seminars on maternity and childcare leave· System of shortened working hours to facilitate nursing care
· Assistance for nursing care services using outside welfare service providers

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

Messages fromTop Management■K intetsu Group Health & Productivity Management Declaration

We are expanding our systems that enable individuals to work according to theirprivate-life situations and maintain a healthy work-life balance. The systems will allow
employees to work using their full capabilities even at stages in their life that require themto provide childcare or nursing care. As a way to help balance work with childcare, in April
2018 we opened nursery school facilities for group employees in group-owned buildingsin three locations along Kintetsu lines (in Uehommachi, Saidaiji, and Yokkaichi), utilizing a
corporate-led childcare system.

Lower percentage ofsmokers
Higher rate offemale-specifichealth checkups

Kintetsu Group Integrated Report 2023

82

■ Major initiatives to maintain and promote health• Stress checks covering all workplaces, consultations fordiseases, ongoing health guidance and education, and ahealth follow-up system• Full cost covered for influenza vaccinations, provided inhouse• Guidance for quitting smoking, measures to prevent secondhand smoke, reduced number of smoking rooms• Non-mandatory medical tests offered with periodic healthcheckups• Health checkups for a wider range of employees than requiredby law and guidance provided by occupational health doctors• Participation as a company in online athletic events using awalking app• Establishment of a Safety & Health Promotion Center

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

Management Policy

Kintetsu Retailing

Kintetsu Miyako Hotels
International◎O ccupational Safety and Health Management Policy(FY2023)

Percentage of mid-career hires to total
number of career-track hires

30.4%

20% or higher

Every fiscal year

6

5 or more

Every fiscal year

Percentage of female hires in railway
transport divisions

17.3%*

30% or higher

Every fiscal year

Percentage of female hires in railway
engineering divisions

3.9%*

5% or higher

Every fiscal year9

20 or more

Every fiscal year

Percentage of regular female employee hires
(%)

44.4%

45% or higher

Every fiscal year

Percentage of male recruits among new
graduate hires

28.8%

30% or higher

Every fiscal year46

50 or more

Every fiscal year

Number of new graduate and mid-careerhires■ Certified as a Health & Productivity

Company

Management Outstanding Organization

In March 2023, for the fourth consecutive year, the Ministry of
Economy, Trade and Industry (METI) recognized Kintetsu Group
Holdings and Kintetsu Railway as “White 500” corporations thatpractice outstanding health and productivity management.

Indicator

FY2022 results

Kintetsu Railway

TargetTarget year

Hours per career-track employee ofparticipation in skills development training

21.9 hours

20.0 hours

Every fiscal year

Of those, hours of IT/DX training

1.9 hours

3 hours

Every fiscal year

―

―

―

―

―

―

49.5 hours*3

50.0 hours

FY2025

117,028 employees*1

Training for specialized skills acquisition andimproved safety awareness

312,432 hours*2
21,132 employees*1

Training related to legal ethics andpromoting diversity

20,555 hours*2
7,759 employees*1

Other training (e.g., training to acquire
general-purpose skills, etc.)

15,943 hours*2

Average hours of training per employee
per year

Messages fromTop Management

FY2025■M ain training-related indicators and targets (KPIs)

Work together to create a workplace withzero work-related accidents
Always carry out “pointing and calling”
Eliminate negligent work
Zero accidents by acting with a heightened sensitivity toward
danger

30% or higher* New graduates hired in April 2023 are shown

1. Occupational Safety Management Policy

•
•
•

17.4%

Number of mid-career hires per year

Kintetsu Group Holdings

Kintetsu Railway has established management policies foroccupational safety and health at each workplace, based on
which employees work together proactively toward the goal ofzero work-related accidents.

Target year

Percentage of female employee hires to total
number of career-track hires

Number of employees hired as career-track
IT-related personnel

Kintetsu Railway

Target* Excerpted from the initiatives of major companies* Excerpted from the initiatives of major companies■ Our Occupational Safety and Health

FY2022 results

Our Value Creation Story• Subsidies for medical checkups to prevent lifestyle-relatedKintetsu Group Holdings

Indicator

Our Value Creation Strategy■ Mental health initiatives

Company

Initiatives for Materiality■ Physical health initiatives■R ecruitment-related indicators and targets (KPIs)

Kintetsu Real Estate

Training costs and support costs for gaining
real estate-related qualifications

Total for training: 24 million yen
Qualifications: 19 million yen
Per employee: 50,000 yen

Total for training:
25 million yen

Every fiscal year

Kintetsu RetailingNumber of employees attending level-specifictraining

1,006

More than 1,000

Every fiscal year

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

Corporate Information

As a means of offering health management to employees
at all group companies, the Health Management Center run
by Kintetsu Railway was relaunched under the auspicesof Kintetsu Group Holdings as the Kintetsu Group HealthManagement Center in June 2019. The center was renovatedand expanded to offer a wider range of health checkups togroup employees. The center provides general medical careand guidance consultations following health checkups, aswell as a consultation section exclusively for women andmental health counseling provided by occupational healthdoctors.

1-5 Human Capital Indicators and Targets (KPIs)

2. Occupational Health Management Policy

Work together to build health in mind and body
•
•
•

83

Let’s create positive, open workplaces
Let’s prevent illnesses by ourselves
Let’s stop smoking and get exercise

Kintetsu Group Integrated Report 2023

* 1 Total number of persons* 2 Total number of hours* 3 Total hours of training divided by the number of employees at the beginning of the fiscal year

Kintetsu Group Integrated Report 2023

84

■ Indicators and targets for creating a positive work environment (KPIs)

2.0% or lessEvery fiscal year

25.7%

40% or higher

Every fiscal year

74.5%

100%

Employee turnover rate

2.3%

2.0% or lessEvery fiscal year

Paid leave uptake rate

87.5%

90.0% or higher

Every fiscal year

Employee turnover rate

3.1%

2.5% or less

Until FY2025

Utilization rate of shorter hours and shorter
work days for childcare

45.7%

50% or higher

Every fiscal year

Paid leave uptake rate

32.7%

35.0% or higher

Every fiscal year

Employee turnover rate

9.6%

4.0% or less

FY2025

Average years of service

12 years

15 years or longer

FY2029Paid leave uptake rate

58.7%

60% or higher

FY2025Percentage of men taking childcare leave

25.0%

30% or higher

FY2025

Total number of employees taking harassment
training

2,064

All employees

Every fiscal year

Awarded Silver Certificate of Excellent HealthCompany

2 companies

4 companies

FY2025Percentage of career-track employees at theCompany interviewed directly by the Human
Resources Division
Section manager-level employees at theCompany who have taken training on how tomanage their subordinates

FY2023

Kintetsu Railway

Kintetsu Real Estate

Kintetsu Retailing

Kintetsu Miyako Hotels
International

KNT-CT Holdings* The employee turnover rate is calculated by dividing the number of employees leaving the company (not including those who have retired or who have completed rehire contracts
after retirement) by the number of employees at the beginning of the fiscal year.

■ Shared targets of major companies in health management (KPIs)

Company

Reduce obesity rate

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

Reduce percentage of employees who feel highly stressed

FY2022 results

FY2023 target

FY2022 results

FY2023 target

Kintetsu Group Holdings andKintetsu Railway

32.2%

Under 30%

6.6%

Under 6%

Kintetsu Real Estate

28.4%

25% or lower

6.3%

3% level

19.5%

Below FY2021 results(22.4%)

13.0%

Below FY2021 results(11.0%)

Kintetsu Department Store

24.4%

Below FY2021 results(24.2%)

13.6%

Below FY2021 results(12.7%)

Kintetsu Retailing

26.7%

Under 28%

18.3%

Under 15%

Kinsho Store

27.9%

Below FY2021 results(28.6%)

13.6%

Below FY2021 results(21.7%)

Kintetsu Miyako Hotels
International

22.1%

Below FY2021 results(22.4%)

7.2%

Below FY2021 results(4.9%)Club Tourism International

20.8%

Below FY2022 results(20.8％)

21.9%

Below FY2022 results(21.9％)

Kinki Nippon Tourist

33.8%

Below FY2022 results(33.8％)

24.3%

Below FY2022 results(24.3％)

Kintetsu World Express(Created November 2022)■K intetsu Group human rights promotion framework
The CSR Committee, chaired by the president of KintetsuGroup Holdings, meets approximately twice a year, setting
our basic policy toward human rights, and deliberates on legal
and ethical matters. The individual companies in the KintetsuGroup work to promote education and training to prevent andmitigate human rights risks and respond appropriately if risks
occur based on their management framework, which includes
the establishment of a legal and ethical affairs committee.
With regard to human rights and social integration issues,the Human Rights & Social Integration Promotion Committee,
chaired by our corporate officer responsible for humanresources, meets once a year to formulate annual targets andpromote awareness-raising activities. In addition, the major
companies of the Kintetsu Group, our Labor Union, and theKintetsu Railway Labor Union are also part of this committee
to facilitate systematic efforts with labor and management
working together.

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

・Establishment of basic policy onhuman rights

・Deliberation on legal and ethicalmatters

・Quick response as contact point for

Legal and ethicalconsultation
helpdesk

Kintetsu Group companies

Messages fromTop Management

2.0%

■F
 undamental Policy on Human Rights of the Kintetsu GroupOur Value Creation Story

Target year

Our Value Creation Strategy

Kintetsu Group Holdings

TargetInitiatives for Materiality

FY2022 results

Corporate GovernanceIndicator
Employee turnover rate among all career-track
employees at the Company

reporting upon the occurrence of humanrights risks

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

Corporate Information

Company

2 Human Rights* Kintetsu Group Holdings = KGH* In addition to the targets above, individual companies have set their own targets, such as to reduce the smoking rate.

85

Kintetsu Group Integrated Report 2023

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86

■ Conducting human rights due diligence(2) E fforts to prevent and mitigate human rights risks through education and training
We strive to prevent and mitigate human rights risks by ① providing education and training, ② disseminating information, and① List of major human rights risks

Major internal initiatives

Human rights risks have been organized with reference to the booklet “Measures Currently Required for Companies Regarding
Business and Human Rights” (Human Rights Bureau of the Ministry of Justice) and other sources.

Harassment

Power harassment, sexual harassment, maternity harassment, paternity harassment, nursing care harassment

Foreign workers, child labor

Discriminatory treatment on the basis of being a foreign national; child laborTechnology, AI

Defamation, invasion of privacy, or discrimination associated with the spread of technology, AI, and other digitaltechnologies• Publicize our Partnership Building Declaration (7 Kintetsu Group

Nations Global Compact
companies)• Thorough safety training• Training (human rights, harassment prevention, legal ethics)

Kintetsu Railway• Prevention of unpaid overtime through attendance

management system• Encouragement to gain Care-Fitter certification• Requests based on Fundamental Policy on Buying Activities(compliance with laws and regulations, respect for humanrights, prohibition of child labor, work hours, etc.)• Training (human rights, harassment prevention, legal ethics)

Violation of the right to not have one’s private life or private affairs made public; provision of personal information without
consent

Consumer safety

Violation of consumer safety and right to know; violation of freedom of expression; violation of human rights due toenvironmental destruction or climate change

Discrimination, gender

Discriminatory treatment based on gender, sexual minority, disability, social integration issues, nationality, religion,
employment status, etc.

Indigenous people and local
communities

Human rights violation such as corporate activities affecting the culture and residence of indigenous people and local
communities

Supply chain

Human rights violation such as a labor violation or harassment in the supply chain• Prevention of unpaid overtime through attendance• Appropriate handling of personal information

management system• Implementation of stress checks• Conducting of surveys in consideration of human rights• Dissemination of the KWE Vendor Code of Conduct

Kintetsu World
Express• Training programs (harassment, diversity & inclusion,

compliance, IT security)* Detailed reviews to be conducted in the future• Training (harassment prevention, Subcontract Act, quality

Kintetsu Department
Storelabeling)• Dissemination of Principles of Action for Suppliers• Improvement plan for employees who work long hours

Based on the identified human rights risks, we identified items that could have a greater impact if they occurred because of thenature of the business of our major companies.
Representative human rights risks
Kintetsu Group Holdings• Airing of instances of occupational accidents at board meetings

Kintetsu Retailing

Kinsho Store

Kintetsu Real Estate

Labor, harassment, privacy, discrimination and gender, indigenous people and local communities

Kintetsu World Express
Group

Labor, harassment, foreign workers, technology and AI, discrimination and gender, supply chain

Kintetsu Department Store

Labor, harassment, consumer safety, supply chain

Kintetsu Retailing

Labor, harassment, consumer safety, discrimination and gender, supply chain

Kinsho Store

Labor, harassment, consumer safety, supply chain

Kintetsu Miyako Hotels
International

Labor, harassment, foreign workers, privacy, consumer safety

KNT-CT Holdings Group

Labor, harassment, privacy, consumer safety, discrimination and genderand prevent occupational accidents• Appropriate disclosure of product information in accordancewith the Food Labeling Law• Investigation of transactions (Subcontract Act)
• Training (harassment prevention, customer harassment, foodlabeling, occupational safety and health, Subcontract Act)

• Holding of briefing sessions for suppliers about the Principlesof Action for Suppliers• Fair trade questionnaire for suppliers• Training sessions for suppliers (prevention of industrial

accidents)• Establishment of a contact point for suppliers to report humanrights issues• Aiming for co-existence and co-prosperity with our business

partners based on mutual trust and fair business relationships• Understanding and maintenance of the work environment for• Some hotels have adopted supplementary services that areforeign workers• System for compliance with Food Labeling Law, information
disclosure education

Rainforest Alliance Certified (a system that promotes theprotection of forests and the human rights of workers)• Training (harassment, human rights, labor management)

KNT-CT Holdings
Kintetsu Railway* Detailed reviews to be conducted in the future• Training (harassment prevention and compliance)

Kintetsu Miyako
Hotels International

Labor, harassment, technology and AI, privacy
Labor, harassment, privacy, consumer safety, discrimination and gender, indigenous people and local communities,
supply chain

management, environmental, compliance)• Conducting of audits and surveys of suppliers• Training (labor management, harassment prevention, compliance)• Patrols of directly managed stores to identify hazardous areas② Identification of human rights risks at major companies• Creation of various guidelines (health and safety, labor, vendor• Ensuring that all employees are familiar with the Compliance

Policy• The creation of supplier guidelines is under consideration(as of October 2023)

Corporate Information

Privacy

Kintetsu Real Estate

Our Value Creation Story

Insufficient or unpaid wages; excessive or unreasonable work hours; violation of occupational safety and health;violation of the right to social protection; forced labor; violation of freedom of residence and association• Publicize the fact that the Group is a signatory to the United

activities)(also for group companies)• Dissemination of information on human rights (every 6 months)

Our Value Creation Strategy

Labor

Major risks• Training (human rights, prevention of harassment in recruitment

Initiatives for Materiality

Category

Kintetsu Group
Holdings

Major external initiatives(3) R emedies and Corrections
A legal ethics helpdesk that doubles as an internal whistleblower hotline and a job
seeker harassment helpdesk have been established at Kintetsu Group Holdings andoutside the company (at a law office).
In addition, there is a CSR Committee and committees set up at the individual groupcompanies to handle responses.

Corporate Governance(1) Identifying human rights risks

Messages fromTop Management③ exerting influence over our supply chain.

Human rights training at the Kintetsu Group(4) Information Disclosure

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Kintetsu Group Integrated Report 2023

We disclose information as appropriate concerning our efforts that involve respect for human rights through our website,
integrated reports, etc.

Kintetsu Group Integrated Report 2023

88

Materiality

Ensuring Safety and Pursuing Peace of Mind

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

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

Main points of our operational safety standards:

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

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

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

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

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

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

The Safety Promotion Committee, chaired by the president,
meets semiannually to formulate and review importantmeasures based on the Safety Policy. Our Railway Accident/
Disaster Prevention Subcommittee and Disaster Response
Subcommittee,
meanwhile,
conduct
comprehensive
discussions around accidents, natural disasters, and otherrelated topics, and come up with effective, appropriate
countermeasures.

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

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

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Kintetsu Group Integrated Report 2023

Collision with person on tracks

Serious incidents

1

50
40

25

12

26

33

30
20
10

Meetings of the Safety Promotion Committee, etc.

Collision at crossing

60

0

21
10

2018

2019

18

21

26

22

2020

2021

2022

TargetNumber of accidents involving
railway operations for which thecompany was responsible

00Every fiscal year

0

Number of accidents involving
railway operations andtransportation disruptions

80

92

Every fiscal year

Fewer than the previous fiscal year
(billion yen)

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

Results
FY2018FY2019FY2020Approx. 18 Approx. 19 Approx. 22
24.2

24.2

26.5

fires on trains, or derailments.

Award for excellence in transport safety
management
In November 2023, Kintetsu Railway was recognizedwith the Minister of Land, Infrastructure, Transport andTourism Award for its excellent safety-related initiatives
in the transportation business. This award was given inrecognition of our contribution to the improvement oftransportation safety through the establishment of anauditing system, in which the internal audit departments
report on the current status and issues based on
objective data and propose improvements with respect
to new safety issues arisingfrom management decisions
and changes in the social
environment, with the goal ofinternal audits leading to correct
decisions and awareness bymanagement.
Award certificate

FY2021

FY2022

Approx. 9

Approx. 14 Approx. 20 Approx. 26 Approx. 28 Approx. 27

9.3

17.9

FY2023

FY202425.8

29.5

FY2025

FY2026

31.3

28.8

■D
 isaster prevention measures
Large-scale earthquakes or natural disasters—made worse
by climate change—are major risks, and as such we work
proactively on measures to mitigate damage. As well as ourcontinuous anti-seismic reinforcement work at locations suchas elevated tracks or stations, and work to prevent bridge
collapses, we are also carrying out anti-seismic reinforcement
and waterproofing measures on shield tunnels between
Kintetsu-Nippombashi Station and Osaka-Namba Station,with a goal of completing this by the end of fiscal 2026. We
are also pressing forward with efforts to strengthen railway
embankments, and raise important equipment and facilities toprevent damage from water ingress.
In some areas, we have installed high-capacity batteries sothat even if a large-scale earthquake were to cause widespread
power outages, trains that lose power in tunnels or similar canmove to the nearest station, to ensure passenger safety.

Anti-seismic reinforcement work on ashield tunnel on the Namba Line

Embankment strengthening work
(Osaka Line)

Main investment plans for FY2023–2025○A nti-seismic reinforcement work for stations and elevatedtracks○A nti-seismic reinforcement work and water ingress

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

and lightning-strike prevention for electrical equipment, etc.

(FY)

* In the past five years, there have been no accidents involving train-on-train collisions,

Forecast■S afety measures
For railway crossings, we have partnered with the relevant
authorities and brought in grade separation, consolidated
crossings, installed pedestrian walkways, and undertaken othermeasures. Moreover, we have been moving forward with technicaldevelopment to allow us to detect if a vehicle or pedestrian getsstuck at a railway crossing. In fiscal 2018, we introduced detection
equipment with horizontal laser sensors that is able to detect
items within a larger area. We have been updating our railway
crossing warning lights so that it is possible to see if they are litor flashing from any direction, helping to prevent accidents before
they happen (670 locations updated as of the end of fiscal 2022).
Since November 2021, we have been remotely monitoring
the situation at railway crossings and transformers using LTE
circuits and internal networks connected to security cameras.
We are also working on how we can quickly discover and identify
the causes of accidents and breakdowns, raise the efficiency ofrecovery efforts, and prevent any spread of accidents. In order to

Our Value Creation Story

Fundamental Policy on Disaster Preparedness

Target year

Our Value Creation Strategy

Safety Policy

FY2022 results

Initiatives for Materiality

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

FY2021 results

strengthen our in-car security measures, we are moving ahead
with installing security cameras in all rolling stock (scheduled to becompleted by fiscal 2028). We are also expanding our installationof communications equipment in train cars that include anintercom.
Added to all of these efforts, we are working daily to checkand develop our rolling stock, electrical equipment, railway lines,
and structures—we strive every day toward transport safety.

Corporate Governance■ Ensuring safety and pursuing peace of mind for transportation

Indicator

Corporate Information

1 Initiatives in the railway business (Kintetsu Railway)

Messages fromTop Management■F uture safety investment plans and KPIs

In-car security camera

Kintetsu Group Integrated Report 2023

90

・Promoting placement of security cameras in all train cars
・E xpanded installation of communications equipment in
train cars that include an intercom, etc.
Before work to elevate theoutbound line

After work was completed

In December 2022, Iga Railway and the city of Iga, as part ofmeasures to prevent a terrorist attack, introduced in-car security
cameras integrated into
fluorescent lights on all trains(5 formations / 10 cars) that
operate on the Iga Line.
Going forward, we aim tooffer passengers trains thatprovide them with safety
and peace of mind, and to
improve our service.
In-car security camera■B us safe-driving training■ Accessible infrastructure
We are making progress with initiatives such as removing steps from stations between the ticket gates and the platforms, andmaking movement smoother by installing elevators and slopes. We are also installing equipment that provides train information or
station guidance in both written and audio forms.
Stations with elevators

Stations with escalators

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

Stations with guidance chimes

128

79

164 (149)

133* Of our 283 stations, 250 allow passengers to travel from outside the station to the platform without using steps.
Main investment plans for FY2023–2025○ Installing platform edge gates

・We are installing platform edge gates with cables thatcan be raised and lowered to adapt to train cars withdifferent door locations or numbers on Platform 2 atTsuruhashi Station (March 2025)
・Placement will begin in order at stations with morethan 100,000 users (plans to put in place a total of fiveplatforms’ worth between fiscal 2023 and 2025)○R eduction of the gap between platform and train

・Promotion of reductions to the gap between platform○A cceleration of efforts to make facilities more accessible

・Each train car to have one dedicated wheelchair spot (forgeneral rolling stock)・Installation of train car

Photo from the training session

guidance displays
・Replacement of steps
with elevators and slopes
・Introduction ofmultipurpose toilets at
stations, etc.

and train by work to raise platforms and changes to newrolling stock to lower their floors■M ental accessibility programs

Fitted raisable cable platform edge
gates at Osaka-Abenobashi Station■ Drills and training
As well as the accident/disaster recovery drills we carryout annually with the help of police and fire departments, we
also conduct drills that imagine tsunami evacuations, fires on
subway trains, injuries on train carriages, terrorist attacks,
and other potential crises. Rather than let memories of past
accidents and breakdowns fade away, we opened an archivethat includes artifacts from the time of past accidents so thatthey cannot be forgotten, and we use them as part of internal
training, etc.

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Kintetsu Group Integrated Report 2023

Nara Kotsu Bus Lines Company has been running bus safedriving training sessions since 1952 to improve awareness ofsafe driving, enhance driving techniques, and achieve truly
safe transport for passengers. At these sessions, selected
drivers from different sites compete using the knowledge andskills they have gained in their everyday duties. At the 72nd
session, held in January 2023, we made the contest evenmore challenging, such as by shortening the time limits forsome events. Through thesessions, we will remind
drivers of the importanceof maintaining the basics,
and promote a safer, moresecure Nara Kotsu Bus
Lines.

Since 2019, Kinki Nippon Tourist has been making
proposals for “mental accessibility” programs that promote
understanding of topics such as the SDGs and diversity
through school education, with the goal of training humanresources who can prosper in an inclusive society. Utilizing
the knowledge and organizational/individual networks wehave gained in the universal tourism promotion activities wehave been running since 1997, we have been putting in placevarious programs. With the aim of improving understandingof the social model of disability, which states that society

has a duty to remove society’s barriers for people withdisabilities, our proposals
include seminars by people
with disabilities, opportunities
to experience what it is like to
be visually impaired or elderly,
and para-sports experiences.
Photo from a mental accessibility
program■C ar-driving tour for the visually impaired
To cater to the desire among some visually impaired
customers to have a go at driving a car, since 2010 Kinki
Nippon Tourist has been conducting driving tours for them.
The tours involve hiring out a racing circuit, having specialist
instructors ride along with customers, and giving thecustomers the experience of driving in a straight line or taking
a slalom, accelerating and braking—the action of driving forthemselves, feeling for themselves the wind in their hair and thecentrifugal force—but in perfectsafety. This activity also helps
to reduce the number of traffic
accidents by showing visually
impaired customers what it is liketo be a driver, and increase theirunderstanding of traffic safety.
Photo from the tour■T
 he Westin Miyako Kyoto wins the

Excellence in Earthquake-Proofing
Construction Prize 2022

In February 2023, the Westin Miyako Kyoto, a hotel owned
and managed by Kintetsu Real Estate, received an Excellencein Earthquake-Proofing Construction Prize at the Excellencein Earthquake-Proofing Construction and Contribution Awards
2022, which is organized by the Japan Building Disaster
Prevention Association. The aim of these awards is to recognize
builders and other relevant parties who have shown particular
excellence in earthquake-proofing, disaster prevention, safety,
and craftsmanship for buildingsthat have had anti-seismic
retrofitting. It also encourages
this kind of retrofitting forexisting buildings, and aims tocontribute to the formation of arobust building stock for Japan. The Westin Miyako Kyoto

Messages fromTop Management

Updating to general rolling stock and in-car security measure○U pdating to dilapidated general rolling stock○ In-car security measures■ In-car security cameras

Our Value Creation Story

repair bridges, tunnels, etc.
○R
 eplacement of railway infrastructure such as tracks, electricalequipment, station equipment, operation management
systems, etc.

For our grade separation project between Kishi Station
and Tondabayashi Station on the Nagano Line, after ourwork on the inbound side (toward Osaka-Abenobashi)completed in June 2022, we finished work to elevate theoutbound side (toward Kawachinagano) in June 2023,
allowing the removal of two railway crossings.

Our Value Creation Strategy○S trengthening and continuation of work to bolster and2 Various safety-related initiatives

Initiatives for Materiality

Ensuring infrastructure remains soundCorporate Governance

Grade separation work between Kishi Station
and Tondabayashi Station on the Nagano Line

Corporate Information

Main investment plans for FY2023–2025■S afety and peace of mind indicators and targets (KPIs)

Accident/disaster recovery drill

Drill with the police that imagined aterrorist attack

Company

KPIs

FY2021 results

FY2022 results

Target year

Target

Kintetsu Real Estate

Percentage of condominiums with stockpiles of emergency
items

ー

100％

2023

100％

Kintetsu Miyako Hotels
International

Food poisoning cases or cases of severe allergic reactions

ー0Every fiscal
year

0

Kintetsu Group Integrated Report 2023

92

PART

Corporate Governanceby citizens and consumers. That is my answer. Corporate

give advice from this kind of perspective.

activities that earn the trust of society must be carried out

Nagaoka When the only perspective you have is that of

impeccably, or sustainability for the company will be out ofan executive, your view will tend to align closely with thereach.

company’s internal logic. Our role is to provide advice andNagaoka That is right on target. The Kintetsu Group is anoversight as an independent party. I feel it is important to giveamalgam of corporate entities that have different businessadvice not on short-term operational strategy but on medium-characteristics, different histories and origins, and disparate

to long-term business strategy and to provide oversight bycorporate cultures. Accordingly, a risk governance systempresenting information in terms of risk governance. I want tomust be built to cover the entire Group. It needs to establish autilize my managerial experience at a financial institution and

fixed point of reference from which to evaluate geopolitical risk

my expertise in business finance to help sustainably improveor compliance and catalog each event or occurrence.

As an external auditor, I am expected to contribute

management philosophy and corporate code of conduct thatto governance, especially in the areas of finance andit has developed over several decades. A more systematic

accounting. The Corporate Governance Code states thatway of maintaining and passing on this framework is needed,

external auditors can do more than perform “defensive

based on a bottom-up approach to ensure that it reaches allfunctions” of governance—that we should positively andemployees.

proactively exercise our authority to increase corporate value.

SuzukiWith Kintetsu Group Holdings in particular, I am interested

about. Looking at the organizational structure of the Kintetsu

in the Group’s financing and organizational restructuring not

Group, the type of business being done by each grouponly in terms of structural compliance but also in terms ofcompany is apparent from the flow of funds, but the holding

effectiveness and efficiency.

company will inevitably find it difficult to assess compliance inTakashi Nagaoka

Kazumi Suzuki

External Director

External Director

External Audit & Supervisory
Board Member

How can corporate value be enhanced and what does
sustainable management look like for the Kintetsu Group
going forward?

everyday business situations. This is one of the drawbacks ofa pure holding company system. The only solution is to ensure

What are some governance issues for the KintetsuGroup?

A fully ingrained management
philosophy and risk governanceIndependent oversight and advice fromthe consumer’s perspective

93

that the management philosophy and code of conduct are
fully ingrained at every level throughout the Group.
Katayama And they need to be incorporated into daily
activities seamlessly so that following them becomes second
nature throughout the organization.
The question I would like to ask people in those

Katayama When speaking about governance, one issue

Suzukithat cannot be ignored is the Kinki Nippon Tourist (KNT)

everyday business situations is, “What do you want to achieve

overcharging of municipalities (for commissioned work related

through your work?” Because earning the trust of customers

to COVID-19 vaccination programs), which was uncovered

and convincing them that this is a good company and thatin April 2023. The report by the investigatory panel eventhe company’s products and services are better than any

pointed out that governance was an issue. I know that every

competitors’ will build confidence. In the long run, employees

department has properly put in place a system and rules, butwill become more devoted to the company and the positive

attorney by profession and have spent many years working on

it seems that they may not have been followed in some areas

effects will extend even further to manufacturing and theconsumer issues. Through my daily work, I was in touch within actual business practices.

offering of services, creating a virtuous cycle.

consumer trends and consumer characteristics, and I know

Nagaoka So, when you pose the question of what should be

Nagaoka Sometimes, people see compliance in the wrong

how difficult it is for a corporate entity to actually “take thedone, I think that what Ms. Katayama said about consumer-

way. They think that it does not apply to their situation or they

perspective of the consumer,” as they profess they will.

oriented management pertains well here.

consider it a cost. That is simply wrong. Compliance is, in fact,Three external directors of the Kintetsu Group Holdings joined a roundtable discussion to talk about theGroup—its present state, ongoing issues, and outlook for the future—from their unique outside perspective.
The meeting saw a lively exchange of views on how to uphold the vision and compliance more persistently
throughout the large corporate group that is Kintetsu Group Holdings, with the directors sharing their ideas
on governance and approaches to risk.

What role do you focus on in your capacity as anexternal director?

I have a point that relates to what you both talked

Katayama The role of an external director is to keep a close

I sincerely want to see everyone in the Kintetsu Group

Katayama Yes. I would like to see every employee—andthe very foundation that supports the company. Unless this iseye on the company from an outside viewpoint, which includes

renew their approach and take to heart the wishes ofthat certainly includes the executives—get back to basics andrecognized, trust that has been built up over many years cana legal lens, looking at the important decisions being madeconsumers while engaged in their daily tasks. Management

reconsider the true purpose of performing corporate activities.

disappear in a flash.

and ensuring that business is being executed properly. I am anthat is oriented toward consumers—that keeps in mind what

A company is part of society, and the most important thing we

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

Corporate GovernanceSuzukiToshiko Katayama

At the same time, the Kintetsu Group has an admirable

Corporate Information

the corporate value of the Kintetsu Group.

Our Value Creation Storysustainability and other positives, and I am always ready to

Our Value Creation Strategy

can do is to provide services and products that can be trusted

Initiatives for Materiality

consumers want out of the Kintetsu Group—is the basis for

Messages fromTop Management

Roundtable Discussion with External Directors

94the company. That’s another reason why it is important toestablish risk governance.
Katayama In previous employment, I had the chance toobserve how business was being conducted at several othercompanies and to talk to people doing their jobs. I discoveredthat there was a tendency to cut corners. People figured thatwhat they were doing was good enough, and this was a kindof shared mindset.
Suzuki

Often, attitudes will depend on the industry or typeof business, or even the era. When people say, “Everyone didit this way in the past, so it should be fine,” that is also a kindof insular shared mindset.
Katayama As Mr. Suzuki said, people need to understand
why those rules have been put in place. And that is because
not following the rules can have serious consequences. To
develop a correct understanding among employees working
in everyday business situations, it is necessary to get people toask questions and engage in discussion until they understandin their own words what it means to follow the rules.

When talking about enhancing corporate value, acommon problem is the potential conflict of interest between
a publicly listed parent company and its publicly listed
subsidiary. The parent company will usually take care not
to exert management influence over the subsidiary to avoid
the suspicion of acting in its own interest to the detrimentof minority shareholders of the subsidiary. As with the KNT
case, when something happens at the subsidiary, the parent
company finds itself in the very difficult position of being
required to take the blame.
However, the reason why the stock price of Kintetsu’s
listed subsidiaries did not fall significantly even during the
COVID-19 pandemic was that the minority shareholders of thesubsidiaries had faith in the parent company that everything
would be okay, even when faced with a dire situation. The
Group’s management did not betray such faith. In fact, thatshould be extolled and communicated to the public.
Nagaoka It is vital to make constant efforts to communicate
the Group’s aim to increase corporate value, which is also
the purpose of the Integrated Report. Such efforts should
be directed not only to employees of the Group but also toa wide range of stakeholders, which includes the minority
shareholders of the subsidiaries.
Katayama That makes a lot of sense. Communicating themessage that the Group and its constituent companies are
striving to provide customer satisfaction from the perspectiveof consumers themselves will, without a doubt, lead to higher
corporate value in the long run. The company’s leaders
should communicate directly with consumers to help themunderstand the company’s true value and what it is striving
toward, because once consumers have made the judgmentthat this is a good company, no matter what happens they will
steadfastly support the company, confident that the company
is striving for the good of society, and they will always maintainthat stance.
Nagaoka The key to building corporate value consistently is
to have a business strategy that focuses on both social value
and economic value. The Kintetsu Group, whose businessactivities have been rooted in the community for well over ahundred years and is well trusted, and whose management
philosophy is “To Support Daily Life, To Create More Value,”
does not have to be too concerned about losing that trust.
The only question now is how to formulate concrete strategies
to increase its value.

95

Kintetsu Group Integrated Report 2023

hotels and leisure, and other areas. It is also involved with a

Messages fromTop Management

Such foundational concepts need to be instilled throughout

Suzukiwide variety of services and cultural programs. So, the key
will be how well it can draw upon synergies and incorporate
outside expertise to improve its value creation processes andput them into action.
SuzukiThat is quite true. Sustainable management for the

Kintetsu Group overlaps with the interests of the surrounding

Our Value Creation Story

and what could happen to them personally in such a case.

transportation, real estate, international logistics, distribution,community with regard to sustainability, which can also
give the Group a competitive edge. By establishing an
understanding throughout the Group that the betterment of
the region—from the standpoint of consumers, passengers,
and local communities—leads to the advancement of thecompany, corporate value will improve quite naturally.
Nagaoka That’s exactly right. People already understandNagaoka One other key to sustainable management I

railroads to be crucial infrastructure, which should allow

would like to point out is having active personnel exchanges.

the Kintetsu Group to improve its corporate value quite

That means actively rotating personnel—say, sending railway

sustainably. Why not be confident in that position and share it

employees to international logistics, or real estate employeeswith all employees? Don’t you think that will create a fun andto hotels, and the like. This kind of revolving door approach

exciting atmosphere?

to human resources can maximize synergies and elevate

Katayama I do, and I agree with the approach to create

both employee quality and overall awareness in businessexcitement. Railways support livelihoods, businesses, and thesituations.

leisure activities of local residents, and as a business its value

Of course, this is already being done to some degree, but I

is closely connected to people’s lives. However, I don’t thinkfeel that even more rotation is needed. Since railways are thepeople have been made fully aware of that value. I myself havecore business of the Group, personnel exchanges can create

lived in Osaka for many years, but I never really understoodan even more open culture, allowing synergies to develop

Kintetsu’s real value until I came to observe the Kintetsu Groupnaturally. I think that such rotations are an essential tool forfrom my current position. I had just taken Kintetsu’s existence

improving the company’s sustainability.

for granted and simply used it without much thought.
SuzukiFor residents who live along its railway lines,

Kintetsu is an established presence that people really do takefor granted.
Katayama That may be true, but there are lots of things I
learned for the first time, having the perspective of this position.
The Kintetsu Group has a wonderful business that exhibits

What is required to increase value in the areas along
Kintetsu lines?

Building an ecosystem together withresidents and municipalities
The areas along Kintetsu lines are blessed witha special warmheartedness in many areas. I have also been

Nagaoka

impressed by its hidden reserves of strength in overcomingsome of Japan’s finest sites for cultural and historical tourism inthe crisis presented by the COVID-19 pandemic—mustering

addition to commercial and residential areas. To make the best

all of its wisdom to continue providing rail service.

use of these resources, it is vital to work with local governments.

I believe that more direct, genuine communication with

Our Value Creation Strategy

harm could come to the company if they are not observed,

The Kintetsu Group has diversified business concerns inBoth social and economic value

Initiatives for Materiality

exist, why such laws and norms need to be observed, what

What will it take to enhance corporate value?

Corporate GovernancePeople think of compliance incorrectly likely because

they aren’t properly informed about why laws and norms

Corporate Information

Suzuki

The Kintetsu Group engages in these collaborations, such as

consumers will better convey the value of the company

the promotion of Ise-Shima as a tourist destination.

to them. The ability to embrace a back-and-forth style ofSuzukiinformation exchange will make consumers feel that theirbroad area, so to take advantage of this network, I believe it isvoices are being heard and they will engage even more with

important to consider all things related to areas along railway

the company, stimulating a mutual excitement on both sides.

lines as part of one strategy. This broad-area network provides

The Kintetsu railway network extends across a

Kintetsu Group Integrated Report 2023

96

operating companies, there will naturally be variation

residential areas and residential areas for young families towill earn the trust of consumers. Actions taken together withwhen they hear the name. With this in mind, top managementfrom one company to another in business environment,

cultural assets and tourist attractions. These resources must

residents along Kintetsu’s railway lines can also be effective

should also focus on global business activities, so toward thatapproach to governance, risk assessment, and otherbe combined well to increase the value of the railway line areas

in revitalizing those train lines. I suggest asking employees if

end, the brand value must be further enhanced.

matters. To put the Group’s management philosophy into

in total, and the Kintetsu Group should consider building an

they would be interested in working on these kinds of things.

Suzukiecosystem that covers everything in those areas needed for

Suzukibecome increasingly important.

to communicate the Group’s purpose (what it exists for),living, working, child rearing, education, leisure, and the like.

that I brought up earlier. Environmental measures need to be

Nagaoka No doubt about it. In the global arena, branding

mission (what it does), and vision (what it aims to become).

Katayama Communities everywhere in Japan today are

adapted to each locality, so it is important to listen to what local

and building a network are important to success, along withAt this time, when drastic changes are taking placefacing serious challenges. Issues such as elderly care andcitizens have to say and take their needs into consideration.

the perspective of diversity. For example, at present, there arein the external business environment, the Kintetsu Groupchildcare are becoming too difficult for the government to

For example, in one area everyone might agree to create ano non-Japanese people in top management in the Kintetsu

has integrated the international logistics firm KWE, whichhandle without help. I believe the Kintetsu Group can takegreen space and in another, a priority would be not disturbing

Group, so the question will need to be raised going forward:

has further brought sudden changes to the internalon the role of overall coordinator, bringing in NPOs that work

the environment, or in yet another location, recycling would“Why aren’t there any?”business structure that are still being implemented. To

independently on various issues along with others to develop

be the best idea.

This also relates to the idea of building an ecosystem

As an international company, diversity will also

practice given such differences will take a constant effort

Earlier I talked about the revolving door concept of rotating

continue growing as a sustainable corporate group, there

solutions that meet the particular needs of each area or

people in different jobs. They can also be sent overseas andneeds to be a process for the constant review of how thecommunity.

foreign nationals can be brought to Japan. By extending the

purpose, mission, and vision are being communicated,practice of rotation internationally, diversity is sure to increase.

taking into consideration the Group’s diverse range of

Also, it wouldn’t be a bad idea to have a foreign director inoperating companies and the rapidly changing businesscharge of the hotel business, for example, especially sinceenvironment and internal business structure. By continuing

the Kintetsu Group is partnering with overseas hotel groups.

to ensure that the Group’s employees are aware of these

The phrase “To Support Daily Life, To Create Morethings, a desirable community-based management styleof vital infrastructure as a business, so it would seem quite
feasible for the Group to work with local governments andresidents along the railway lines to address important social
issues that have arisen recently, including achieving carbon
neutrality. The power to remedy social issues as a business
relies on human resources and that is where the KintetsuGroup excels. It has fine employees with advanced skills. The
question is whether their combined wisdom can be mobilized
to execute a plan with energy and passion.
Katayama Many companies are working hard to address
the SDGs in their business operations or as an extension ofWhat do you expect from top management?

Getting the corporate philosophy more
fully ingrained everywhere
Katayama The most outstanding characteristic of theKintetsu Group is that it has been supplying services andinfrastructure to support the lives of area residents like us forso many years. That is a great strength, and I believe that 100
or 200 years from now, as long as people are living in thisSuzukiValue” embodies the management philosophy of the Kintetsu

can be renewed on an ongoing basis.

Group and reflects the Group’s aim to contribute to regional
development and the well-being of local communities throughits business activities.

area, the business operations run by the Kintetsu Group willcontinue to be indispensable.
That is why I would like top management to be passionate

Corporate GovernanceNagaoka The Kintetsu Group runs a significant amount

Messages fromTop Management

Since the Kintetsu Group consists of diverse types ofcorporate group about which people say, “Oh, that Kintetsu!”

Our Value Creation Story

firm, so especially in Asia we need to strive to be the kind of

directly involve profit. Such efforts create a virtuous cycle that

Our Value Creation Strategy

those operations, even when the measures they take do not

ranging from business and commercial districts to upscale

Initiatives for Materiality

access to a wide variety of regional resources along its lines,

in appealing to employees to sustainably fulfill the Group’s
mission of providing social value while strengthening
economic foundations. Above all, it is important for every
employee to understand and be aware of this mission andto implement it, so the company’s leaders must present themessage as “Let’s do this together” rather than “Please do it

Corporate Information

yourselves.” It is vital to use this kind of inclusive language sothat employees can relate to the message.
Nagaoka I agree. To add one more point about making animpassioned appeal, I would like to see a focus on building thevalue of the Kintetsu Group brand further. The word “Kintetsu”
should have a special ring to it, representing to everyone inJapan a wonderful, trustworthy corporate group that stands
for high quality.
Katayama Yes, and not only in Japan but globally, too.
Nagaoka That’s right. In the summer of 2022, the Group
added Kintetsu World Express (KWE), an international logistics
Roundtable discussion held at ABENO HARUKAS in October 2023

97

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

98

Materiality■ Our basic approach

General Meeting of Shareholders

Jun.

2019
Jun.

2018

●

Oct.

2016

2015

Jun.

Jun.

2006

2004
Jun.

2003
Jun.

●
●
●
●

99

Jun.

●

May

●

●

●

●

●

May

●

Oct.

●

Apr.

●

2014
Jun.

Jun.

●

●

●

●

Started evaluating the effectiveness of the Board of Directors

Reviewed the corporate officer remuneration system (raised the proportion of
performance-linked compensation)
Switched to a pure holding company structure (to raise corporate value by
strengthening group management functions and giving group companies
greater management independence)Started employing an electronic voting platform for use at general meetingsof shareholders

Reviewed the corporate officer system (established the senior managing
executive officer and managing executive officer ranks)

Held the general meeting of shareholders on June 25, and changed it to makefuture such meetings earlier in the fiscal year

Our Value Creation Story
Our Value Creation Strategy

Internal Audit Dept.

Auditing

Management
oversight

Reviewed the corporate officer remuneration system (introducing
compensation via transfer-restricted shares)
Changed the number of directors to 14 (of whom 4 were external directors)

Ended anti-takeover measures in line with changes to the management
environment

Cooperation

Auditing

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

Appointed a female corporate officer (1 external Audit & Supervisory
Board member)

Established the Personnel and Compensation Advisory Committee(of whom a majority of members are independent external directors)

Cooperation

Initiatives for Materiality

Mar. ● Revised the decision-making process for the amount given to individual
directors as pecuniary rewards (from entrusting the matter to the chairman todeliberations by the entire board)
2020

Executive directors& officers

Jun. ● Increased the number of female corporate officers (to 1 external director and1 external Audit & Supervisory Board member)● Changed the number of directors to 12 (of whom one third (4) are independent
external directors)

MutualchecksEnhance risk management (establish group-wide risk
management framework and processes)

President

Executive directors& officers

2021

●

Execution

Audit &
Financial auditors
Supervisory Board Cooperation

・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

MutualchecksSpringBoard of Directors

Executive directors& officers

2024 (Planned)

Personnel andCompensation
Advisory Committee

Supervision

Audit &
Supervisory
Board Member
Support Dept.

■ A history of governance reforms

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

As summed up in our management philosophy—To Support Daily Life, To Create More Value—our goal is to support safety inpeople’s lives and boldly take on the challenge of creating new value, through sincere corporate activities. We also aim to collaborate
with a diverse range of people to make our society better. Through these activities, we hope to maintain and strengthen our
relationships of trust with shareholders, customers, business partners, local communities, employees and other varied stakeholders,so to this end, we are working to enhance our corporate governance and the soundness of our management.

2010

Shareholders

Group companies(As of June 2023)■C orporate Code of Conduct
The Kintetsu Group Holdings Corporate Code of Conduct, which acts as the foundation for how we behave, is detailed below.
・We will raise customer satisfaction through the businessactivities of group companies.
・We will increase corporate value through the independence
and cooperation of group companies.
・We will contribute to the development of local communities
as a good corporate citizen.
・We will work diligently to protect the environment.

・We will comply with the law and hold ourselves to a highethical standard.
・We will disclose information as appropriate and ensuretransparency of management.
・We will respect human rights and foster workplaces wherelabor and management work together harmoniously.
・We will outright refuse any relationship with anti-social forces
or organizations.

Corporate Governance

Overview of the corporate
governance framework

Messages fromTop Management

We believe that having a highly transparent, fair management framework is vitally important for building relationships of trust, andto that end we work to enhance our corporate governance.

1 Corporate Governance

2012

■C
 orporate governance framework

Corporate Information

Bolstering Our Governance and Risk Management

Reviewed the corporate officer remuneration system(introduced performance-linked compensation)
Introduced anti-takeover measures to raise corporate value and secure profits
to share with shareholders■C orporate governance indicators and targets (KPIs)

Changed the number of directors to 17 (of whom 4 were external directors)

Ended the retirement golden handshake system for corporate officers
Introduced an officer system
Shortened directorial terms from 2 years to 1
Changed the number of directors from 25 to 19 (of whom 4 were external directors)

Kintetsu Group Integrated Report 2023

Company

Indicator

FY2021 results

FY2022 results

Target year

Target

Kintetsu Group Holdings

External director ratio

33.3%

33.3%

FY2023

Maintain one thirdor higher

Kintetsu Group Integrated Report 2023

100

■ Diversity policy for the Board of Directors
Corporate officers are appointed based on overall
considerations of experience, knowledge, abilities,
personalities, and other factors, regardless of gender.
However, given that female-perspective-driven management
will be increasingly important going forward, we will
undertake further initiatives to promote female participation.
Also, in the case of external corporate officers, we will appoint
myriad individuals—such as executives in other companies,
attorneys, and academics from all manner of fields—andconsider the diversity of the board’s composition.

■ Audit & Supervisory Board members
Of the five members of Kintetsu Group Holdings’ Audit &Supervisory Board, three are external auditors and independent
officers. We ensure members have the required expertise to
discuss matters of a financial, accounting, and legal nature,
and we aim to enhance the stringency and thoroughness of
the auditing process. There is currently one female Audit &Supervisory Board member.

■A udit & Supervisory Board
In principle, the Audit & Supervisory Board meets oncea month. In addition to determining basic policies towardauditing, each board member will report on their ordinary
auditing activities, and members will then exchange opinions
among themselves.
Attendance information for fiscal 2022 is detailed in thecorporate officer skills matrix.

The seven external officers who meet the independent
officer criteria have been designated as independent officers.
Independent officers are external directors and external
Audit and Supervisory Board members who will not havea conflict of interest with general shareholders, and thestandards by which we determine independence are detailed
in corporate governance reports.

Our Value Creation Story

The Personnel and Compensation Advisory Committee
was established to act as a consulting body for the Boardof Directors, and it aims to discuss the personnel andcompensation affairs of directors, and to assist with theboard’s decisions. More than half of its members are
independent external directors. The committee holds thefunctions of both a directorial candidate selection committee
and a remuneration committee, and is currently composedof six members—Kintetsu Group Holdings’ chairman andpresident, as well as four independent external directors—
and meets at least once a year. In fiscal 2022, the committee
met three times, with all members in attendance. In addition
to discussing and investigating personnel affairs andcompensation for directors, group officers, and officers, thecommittee also looked into the skills officers need as part ofcreating the skills matrix.

■C orporate officer skills matrix

Management Business
Global Finance/
Marketing IT/DX
experience experiencebusiness Accounting

Position

Name

Representative Director,
Chairman of the Board

Tetsuya Kobayashi○○

Representative Director,
President

Takashi Tsuji○○

Director, Senior Managing
Executive Officer

Takashi Wakai

Director, Senior Managing
Executive Officer

Shiro Hara

Director, Managing
Executive Officer

Nobu Hayashi

Director, Managing
Executive Officer

Akihiko Matsumoto

Director, Managing
Executive Officer

Hiroyuki Kasamatsu

Director

Akimasa Yoneda○

External Director

Masanori Yanagi○

External Director

Toshiko Katayama

External Director

Takashi Nagaoka

External Director

Yuji Mikasa

Audit & Supervisory Board
Member (full-time)

Hitoshi Tada

Audit & Supervisory Board
Member (full-time)

Hajime Nishizaki

○

-

-

-

10/10 (100%)-○

10/10 (100%)-○

10/10 (100%)-○

8/8 (100%)

-

○

-

-

-

-

○

9/10 (90%)-

10/10 (100%)

-

○

○

○

○

○
○

○

○
○

○

○

8/8 (100%)

-

○

-

-

10/10 (100%)

11/11 (100%)

-

-

○

10/10 (100%)

11/11 (100%)○

10/10 (100%)

11/11 (100%)○

9/10 (90%)

10/11 ( 91%)

○
○

○

○
○

○

External Audit & Supervisory
Masahiro Maeda
Board Member○

External Audit & Supervisory
Kazumi Suzuki
Board Member
External Audit & Supervisory
Michiko Inoue
Board Member

○

○

○

○
○

Attendance at the Attendance at the Audit
Board of Directors & Supervisory Board(FY2022)(FY2022)
10/10 (100%)

○

○

Human
resource
development/
Diversity

○

○
○

Legal
affairs○○○

Messages fromTop Management■ External officers’ independence

Committee

Our Value Creation Strategy

The Board of Directors is chaired by Kintetsu Group
Holdings’ chairman and meets, in principle, once a month. In
addition to deciding important matters of business execution,
it regularly receives progress reports on business activities,
including on the status of efforts to establish and operateinternal controls. Business execution is then overseen by theboard’s executive directors and officers.
As well as deciding on vital topics concerning KintetsuGroup Holdings’ business execution, the Board of Directors
approves important matters at major group companies,
reports on revenue and expenditure budgets and performance,
and fulfills other roles. In fiscal 2022, the Board of Directors
deliberated and decided on issues such as buying up sharesin our companies (including making Kintetsu World Express
a wholly-owned subsidiary) and investments by majorgroup companies (examples include the construction of an
outdoor experience complex in the Shima area). Attendance
information for fiscal 2022 is detailed in the corporate officer
skills matrix.

In order to evaluate its own effectiveness, once a year
the Board of Directors carries out self-assessments for all
directors and auditors. The findings of these are analyzed andappraised, and an overview of the results for the most recent
evaluation, in spring 2023, are as follows.
The Board of Directors was deemed to be functioning
appropriately and given a positive evaluation overall. Meetings
are held at a necessary and appropriate frequency, and thedecision-making process for important matters or similar isappropriate. Also, the presidents of major group companies
supply the board with detailed, specific reports, and Q&As
and discussions are substantial.
One issue identified during the last effectiveness appraisal
was that given the severe management environment with the
COVID-19 pandemic and other factors, there was an increasing
number of matters that necessitated very important decisions
and so it would be beneficial for reference documents andexplanations to take a deeper dive than previously into the
backdrop to matters and studies where possible. This time,
the board was deemed to have improved, with extensive
documents and explanations focused on the key points, andadvanced explanations about important matters were also
deemed to be substantial.
On the other hand, there was some feedback thatgovernance-related reports could be more extensive; that
there could be more opportunities for debates on risk andcompliance approaches and subjects such as future businessoutlook or medium- and long-term strategies; and that it could
be beneficial to strengthen the Group’s evaluation functions
for total risks.
Taking these ideas on board, we will continue to work to
improve the board’s functions.

■P ersonnel and Compensation Advisory

Initiatives for Materiality■ Board of Directorsof Directors

Corporate Governance

Kintetsu Group Holdings has 12 directors, four of whomare external directors who do not have a personal stake in
the Group’s success or failures. Their opinions, which comefrom a wealth of experience and wide-ranging points of view,are incorporated into the Group’s management and the board
works to strengthen management oversight functions. Thereis currently one female director.

■ Appraising the effectiveness of the Board

Corporate Information■ Directors* The table above does not detail all the knowledge, experience, or capabilities that each director or auditor may possess.
* Information for Akihiko Matsumoto and Takashi Nagaoka only covers Board of Directors meetings held after their appointments on June 17, 2022.
* Information for Takashi Tsuji, Hiroyuki Kasamatsu, Akimasa Yoneda, Yuji Mikasa, and Hajime Nishizaki were appointed as directors and Audit & Supervisory Board members on June27, 2023.

101

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

102

With the belief that directorial remuneration should act as afurther incentive to raise corporate value and performance, it
comprises three parts: a fixed pecuniary reward, a performancelinked pecuniary reward, and remuneration in shares. Individual
amounts are determined in line with the following policies:i.	Decision-making policy on fixed pecuniary rewards
Fixed pecuniary rewards are set in accordance with rank andconsider duties, etc.
ii.	Decision-making policy on performance-linked pecuniary
rewards
Full-time directors are provided with performance-linked pecuniary
rewards. The amount is set in accordance with rank, andcalculated based on the amount of two indicators: consolidated
ordinary profit and profit attributable to owners of parent.
iii.	Decision-making policy on remuneration in shares
For full-time directors’ remuneration in shares, they are given
transfer-restricted shares that come with certain conditions—such as not being able to be disposed of until after leaving theirposition—and the number of shares is set in accordance with rank.
iv.	Decision-making policy on pecuniary proportion of different
compensation levels
The ratio between fixed pecuniary rewards, performancelinked pecuniary rewards, and remuneration in shares are set
to appropriate proportions to contribute to raising corporate
value and performance.
v.	Decision-making policy on when rewards are provided
Pecuniary rewards are paid each month. A year’s worth of
remuneration in shares is provided each July, but should theBoard of Directors have deemed that a major legal breach, orother specific event, has occurred, the company may choose
not to provide this reward.
vi.	Decision-making method on individual remuneration amounts
The amount of individual remuneration is determined by the Board of
Directors, following deliberations by the Personnel and Compensation
Advisory Committee, based on plans created by the company.

subsidiaries and governance effectivenessOf our subsidiaries, there are three that are listed on Tokyo
Stock Exchange’s Standard Market: Kintetsu Department
Store Co., Ltd., KNT-CT Holdings Co., Ltd., and Kin-Ei Corp.
We have developed a wide range of lifestyle-related
businesses, first and foremost our railway business, andKintetsu Department Store Co., Ltd. and Kin-Ei Corp. are todevelop comfortable, varied urban functions at major train
terminals and locations along our lines. KNT-CT Holdings’
important role, meanwhile, is to attract visitors to Ise-Shima,
Nara, and tourist attractions in the Kintetsu operational area.
By having our companies connect organically in this way,
we aim to achieve the goal of our management philosophy:
To Support Daily Life, To Create More Value. On the other
hand, for these market-listed companies, having them listed
increases their autonomy and is also an advantage in termsof gaining the trust of society and securing personnel. We
believe that in this way we can synergistically raise the qualityof the Kintetsu Group’s management.
For our oversight of group management, we take care notto adversely affect these listed companies’ independence or
the profits of their few shareholders. For vital transactions
between the listed companies and ourselves in the parent
company, we make sure to receive approval from our Boardof Directors, which includes several independent external
directors. Where needed, we also take on board third-party
opinions to ensure the fairness of any such dealings.

To promote corporate behavior that is line with laws, regulations, and corporate ethics, we have formulated the Legal and Ethical
Guidelines. We have set out our policies on strict information management, the elimination of anti-social forces, prevention of bribery
and corruption and other topics, and details can be found on our website. All officers and other employees have been issued witha handbook entitled “The Legal and Ethical Standards Manual,” and we work to spread awareness of these issues. Moreover, ourpolicy on the protection of the personal information that we handle is outlined in the separate Personal Information Protection Policy.
In terms of our internal framework, in addition to establishing the CSR Committee, we have also placed legal and ethical standards
managers and persons in charge in each department, and are promoting compliance activities. We have established complianceframeworks in our group companies and are promoting appropriate corporate behavior.

■L egal and Ethical Guidelines■L egal and ethical consultation system

We have formulated a set of guidelines pertaining tocompliance with laws, regulations, and corporate ethics andhave distributed copies of “The Legal and Ethical Standards
Manual” to officers and other employees so as to raiseawareness.

To quickly detect and correct infractions of legal standards,
corporate ethics, or our internal regulations, we haveestablished internal and external (via outsourcing to outside
legal offices) legal and ethical consultation helpdesks. The
helpdesks can handle reports and queries from KintetsuGroup Holdings employees and employees from 61 groupcompanies in the transportation, real estate, hotel and leisure,logistics, and other fields. These helpdesks also act as hotlines
for internal whistleblowing, based on the provisions of the
Whistleblower Protection Act (there were 44 such reports infiscal 2022).
Moreover, to ensure that the legal and ethical consultation
system is easier to use, we have also established femalestaffed 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 impartially.

Kintetsu Group Holdings Co., Ltd. formulated the policy
below with regards to legal and ethical compliance. All
employees, including officers, understand the policy andstrive to ensure compliance.
All managers responsible for this organization, including theofficers who manage the Group, will set an example and always
endeavor to strengthen the internal system to guarantee theeffectiveness of the Corporate Code of Conduct and the Legaland Ethical Guidelines.
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.

Legal and ethical consultation system flow
KGH and group company employees
Consultation

Report of results

Report of results

Consultation

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

Report/Cooperation

Relevant departments(incl. group companies)* Kintetsu Group Holdings = KGH(As of April 2023)■ Education and training

Messages fromTop Management■ Significance of possessing listed■L egal and ethical compliance framework

Our Value Creation Story

More details of our internal control system can be found in
our corporate governance report, in particular in the section“IV. Internal Control System.”Our Value Creation Strategy

Decision-making policies on remuneration for individual directors

2 Compliance

Initiatives for Materiality

The pecuniary remuneration for individual directors isdetermined 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 determinedby discussions by the Audit & Supervisory Board.
Our decision-making policies on remuneration for individual
directors, as well as remuneration for each type of corporate
officer, are detailed below.

■ Internal control system

Corporate GovernanceSupervisory Board members

Corporate Information■ Remuneration for directors and Audit &Amount of remuneration (FY2022)

103

Reward breakdown (million yen)

Corporate officer type

Total (million yen)Fixed pecuniary

Performance-linked

Directors

331

209

94

27

15

(of which, external directors)

(27)

(27)

(－)

(－)

(5)

Auditors

71

71

－

－

5

(of which, external auditors)

(19)

(19)

(－)

(－)

(3)

Kintetsu Group Integrated Report 2023

Remuneration in shares

Number of individualsWith the goal of raising awareness of compliance among all
employees, from corporate officers on down, we continuously
carry out educational and training activities through a variety ofopportunities, including new-employee training.
Furthermore, to raise group-wide awareness, we provide
training materials to group companies as a way of supporting
their legal and ethical training. We also work to prevent scandals
by holding on-site training at group companies through lecturesthat consider their individual businesses and needs, and that
include specific case studies.
In fiscal 2022, we provided training
materials to 61 group companies
twice and held on-site training at 20
group companies for a total of 4,000
people.
Employees receiving training

Kintetsu Group Integrated Report 2023

104

■B
 usiness continuity plans

In order to adequately manage business and otherrisks, we formulated our comprehensive Risk Management
Regulations. We also, where necessary, carry out debates onmatters of importance, including risk, at deliberating bodies
such as the Board of Directors, Management Committee,
Board of Managing Directors, and Group Strategy Committee.
To manage categories of risk deemed particularly
important—such as crisis management for incidents anddisasters, or matters of legal and ethical compliance—wehave specialist staff in addition to the overall risk management
framework, and prepare separate management systems,
such as by formulating internal regulations or instruction
manuals.
Overall risk management framework
Risk management bodies
Board of Directors
Discussion of risk andother important matters

Audit&
Supervisory
Board
members

Any meeting
Management Committee

Board of Managing Directors

Group Strategy Committee

CSR Committee

Risk summarizing divisions
Administrative
General Affairs Div.

Cooperation

Controls management ofoperational risk relating
to safety, etc.

EachdivisionEachdivision

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

Groupcompany

Groupcompany

Groupcompany

Manages business activity risk related to jurisdictions(As of June 2023)

105

Kintetsu Group Integrated Report 2023

Taking into account the Kintetsu Group’s business andfinancial situation, management has identified the majorrisks—issues that they recognize as having the potential to
adversely affect the financial standing, operating results, orcash flows of consolidated subsidiaries—detailed in the tablebelow (as of June 2023).
As well as recognizing the likelihood of these risks
occurring, we are working to avoid them coming about or how
to respond if they do. More details can be found in our Annual
Securities Report 2023.
1.	Changes in the economy, personal consumer
behavior, the international situation, etc.
2.	Spread of infectious disease
3.	Changes in the cost price of freight/transport
4.	Shrinking population in the area, further
motorization, competition with rivals
5.	Large-scale disaster or incident
6.	E xchange rate fluctuations
7.	Climate change
8.	Worker shortages/soaring pays
9.	Legal/regulatory risks
10.	Loss of trust due to product quality or food safety
or labeling11.	Drop in land prices, etc.
12.	Soaring prices of resources such as oil
13.	Changes in interest rates for procuring funding
14.	Changes in stock prices
15.	Changes in lifestyles due to the evolution of digital
information technologies
16.	Information leaks, etc.
17.	Corporate acquisitions, etc.

■ Enhancement of risk management
The risks we face are becoming increasingly diverse
due to changes and growing complexity in the businessenvironment and the making of Kintetsu World Express
into a wholly-owned subsidiary. Considering also theareas where risks are emerging and other factors, theKintetsu Group is enhancing its management of risk.
With the main aims of preventing risks from emerging,or minimizing loss if they do emerge, we will put in placea risk management framework that spans the entire
Group in spring 2024. Concrete steps toward this will
include creating a risk management committee chairedby the president and establishing a PDCA cycle tomanage risk.

■E xtraordinary Circumstances Response

Regulations

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.

■H ighest BCM rating rank from the DBJ
In March 2023, we received the highest-rank BusinessContinuity Management (BCM) rating from the Development
Bank of Japan (DBJ) for the eleventh consecutive year forhaving particularly exceptional initiatives
toward disaster preparedness andbusiness continuity. The BCM rating
is an evaluation of such initiatives and DBJ BCM格付2022
a means of recognizing exceptional
companies.

■R isk management indicators and targets (KPIs)
Company

Indicator

FY2021 results

FY2022 results

Target year

Target

Kintetsu Railway

Business Continuity Management (BCM)
rating (Development Bank of Japan)

Highest rank

Highest rank

FY2025Maintaining thehighest rank

4 Supply Chain Management■A ction guidelines for suppliers, etc.

■P artnership Building Declaration

The Kintetsu Group has expanded into a range of different
businesses inside and outside Japan, and we believe thatsharing awareness of CSR themes—such as law and ethics,
the environment, and occupational health and safety—withbusiness partners, and being sincere and acting responsibly
are of vital importance.
Kintetsu Railway Co., Ltd. has formulated the Fundamental
Policy on Buying Activities and the Requests for Business
Partners, for the companies it works with and carries out
periodic questionnaires to check conditions on the groundand promote improvements.
In 2020, the Kintetsu World Express (KWE) Group formulated
its KWE Vendor Code of Conduct. The group also set Social
Impacts in the Supply Chain as one of its areas of materiality
to promote responsible procurement, and going forward willfurther strengthen its ties with business partners.

In March 2022, we announced our Partnership Building
Declaration. The aim of the declaration is to advance cooperationand mutual prosperity between companies and supply chain
partners and business operators looking to create value, and tobuild new partnerships. In addition to Kintetsu Group Holdings,
seven Kintetsu Group companies have also made the declaration.
As well as working to support efficiency enhancements at
suppliers, such as by promoting electronic business transactions,by understanding the situation throughout the entire supply chain
and sharing information, we are contributing to the realization of aprosperous society through co-creation.

Kintetsu Railway Co., Ltd.
Fundamental Policy on Buying Activities
https://www.kintetsu.jp/shizaichotatsu/basicpolicy.html
Requests for Business Partners
https://www.kintetsu.jp/shizaichotatsu/onegai.html

Kintetsu World Express, Inc.
KWE Vendor Code of Conduct
https://www.kwe.com/upload/docs/en_vendor_code_of_
conduct-2021nov.pdf
Kintetsu Group Integrated Report 2023

Messages fromTop Management
Our Value Creation Story

concerning loss risk management■B usiness and other risks

Our Value Creation Strategy■ Regulations and other frameworks

As our reliance on IT in our corporate activities has grown,
so has the importance of information security measures.
Therefore, to maintain a necessary information security
standard, Kintetsu Group Holdings and its subsidiaries, as aGroup, have compiled fundamental principles that should becomplied with throughout the Group in the Kintetsu Group
Basic Information Security Policy.
Kintetsu Group Basic Information Security Policy
https://www.kintetsu-g-hd.co.jp/csr/structure/risk.html#STR-RISK_05

Initiatives for Materiality

By developing and operating appropriate internal control systems, we aim to reduce risk and raise corporate value.
Under the Financial Instruments and Exchange Act, we are obliged to evaluate and audit internal controls that pertain to financial
reporting. As such, we have determined fundamental plans and policies for such internal controls.

PolicyWith the aim of improving our ability to respond to extraordinary
circumstances, we formulate business continuity plans (BCPs)
to deal with such serious risks as major earthquakes in the
Nankai Trough or elsewhere, typhoons or other weather-related
damage, or the COVID-19 pandemic or other infectious disease.
These plans, which aim to restore business operations as swiftly
as possible, set out in advance the measures required to returnthe business to normal operations, the time this is expected totake, and which departments will take the lead.

Corporate Governance■ Basic risk management policy■K intetsu Group Basic Information Security

Corporate Information

3 Risk Management

106

107

Audit & Supervisory
Board Member

Director, Managing
Executive Officer

Hitoshi Tada

External Audit & Supervisory
Board Member

Michiko Inoue

Director, Senior Managing
Executive Officer

Director, Senior Managing
Executive Officer

Director, Managing
Executive Officer

Hiroyuki Kasamatsu Nobu Hayashi

Takashi Wakai

Shiro Hara

Akihiko Matsumoto Akimasa Yoneda

Hajime Nishizaki

External Audit & Supervisory
Board Member

External Director

External Director

Representative Director,
Chairman of the Board

Representative Director,
President

External Director

External Director

External Audit & Supervisory
Board Member

Masahiro Maeda

Takashi Nagaoka

Masanori Yanagi

Tetsuya Kobayashi

Takashi Tsuji

Toshiko Katayama

Yuji Mikasa

Kazumi Suzuki

Kintetsu Group Integrated Report 2023

Director, Managing
Executive Officer

Director

Audit & Supervisory Board
Member

Kintetsu Group Integrated Report 2023

Corporate Information

Corporate GovernanceInitiatives for Materiality

Our Value Creation Strategy

Our Value Creation Story

Messages fromTop Management

Corporate Officers (as of September 30, 2023)

108

Corporate Officer Profiles (as of September 30, 2023)
Directors

Ind ... Independent Corporate Officer

Audit & Supervisory Board Members

Messages fromTop Management

Ext ... External Corporate Officer

Takashi Wakai

Shiro Hara

Hitoshi Tada

Hajime Nishizaki

Masahiro Maeda

President(Representative Director)

Audit & Supervisory Board Member(full-time)

External Audit & Supervisory
Board Member

Apr.1982 Joined the Company
Jan.2015 Officer, Kintetsu DivisionPreparation Company (currently
Kintetsu Railway Co., Ltd.)
Jun.2016 Managing Executive Officer of sameJun.2019 Director, the Company
Jun.2019 President, Kintetsu Railway Co., Ltd.
Jun.2021 Officer, the GroupJun.2023 Director, Kintetsu Railway Co., Ltd.
(present position)
Jun.2023 President, the Company (present
position)

Director, Senior Managing Executive
Officer
Responsibilities: Business Strategy Div.
and Public Relations & Advertising Div.

Audit & Supervisory Board Member(full-time)Apr.1968
Jun.2001
Jun.2003
Jun.2005

Director, Senior Managing Executive
Officer
Responsibilities: Corporate Strategy Div.
and Accounting Div.

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
Jun.2023 Director, Senior Managing
Executive Officer, the Company(present position)

Apr.1982 Joined the Company
Jun.2020 Audit & Supervisory Board
Member (full-time),
the Company (present position)

Apr.1979 Joined the Company
Jun.2018 Director, Managing Executive
Officer, Kintetsu Railway Co., Ltd.
Jun.2019 Director, Senior Managing
Executive Officer of sameJun.2021 Senior Executive Vice Presidentof sameJun.2023 Audit & Supervisory Board
Member (full-time), the Company(present position)

Apr.1987 Associate Professor,
Department of Law,
Kyoto University
Apr.1992 Associate Professor, Graduate
School of Law, Kyoto University
Apr.1996 Professor, Graduate Schoolof Law, Kyoto University(present position)
Jun.2014 External Audit & Supervisory
Board Member, the Company(present position)

Jun.2020
Jun.2023

External Audit & Supervisory
Board Member

Ind

Ext

Ind

Apr.1994 Associate Professor, Faculty ofBusiness and Economics,
Kindai University
Apr.1995 Associate Professor, School ofBusiness Administration,
Kobe University
Apr.1999 Associate Professor,
Graduate School of Business
Administration, Kobe University
Apr.2012 Professor, Graduate School ofBusiness Administration,
Kobe University
Jun.2019 External Audit & Supervisory
Board Member, the Company(present position)
Apr.2021 Professor, Kobe University
Center for Social Systems
Innovation (present position)
Important positions concurrently held

Nobu Hayashi

Akihiko Matsumoto

Hiroyuki Kasamatsu

Akimasa Yoneda

Michiko Inoue

Director, Managing Executive Officer
Responsibilities: Secretarial Div. and
Human Resources Div.

Director, Managing Executive Officer
Responsibilities: Administrative
General Affairs Div. and Audit Div.

Director, Managing Executive Officer
Responsibilities: Corporate Strategy Div.

Director (part-time)

External Audit & Supervisory
Board Member

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

Apr.1984 Joined the Company
Jun.2022 Director, Managing Executive
Officer, the Company(present position)

Ext

Ind

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)

Group Officers
Masanori Yanagi
External Director

ExtToshiko Katayama
Ind

Apr.1974 Joined Japan Development Bank
Jun.2011 Deputy President, Development
Bank of Japan Inc.
Jun.2015 President and CEO,Development Bank of Japan Inc.
Aug.2018 Chairman, The Japan
Economic Research Institute(present position)
Jun.2019 External Director, the Company(present position)
Important positions concurrently held

Director, Fukoku Mutual Life Insurance
Company
Director, Tobu Railway Co., Ltd.

External Director

Ext

Takashi Nagaoka
Ind

Apr.1988 Registered as an attorney at law
Apr.1993 Established Katayama Toshiko
Law OfficeJul.2005 Established Katayama, Kuroki
and Hiraizumi Law Office(currently Katayama andHiraizumi Law Office)(present position)
Jun.2020 Audit & Supervisory Board
Member, the Company
Jun.2021 External Director, the Company(present position)
Important positions concurrently held

Director, Sumitomo Life Insurance Company

External Director

Ext

Yuji Mikasa
Ind

Apr.1976 Joined The Mitsubishi Bank, Ltd.
Jun.2011 Deputy President, The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Jun.2014 President & CEO, Mitsubishi UFJ
Securities Holdings Co., Ltd.
Jun.2014 President & CEO, Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd.
Jun.2015 Member of the Board of
Directors, Deputy Chairman,
Mitsubishi UFJ Financial Group, Inc.
Apr.2018 Member of the Board of
Directors, Chairman, Mitsubishi
UFJ Securities Holdings Co., Ltd.
Apr.2022 Senior Advisor, Mitsubishi UFJ
Securities Holdings Co., Ltd.
(present position)
Jun.2022 External Director, the Company(present position)

External Director

Ext

Ind

Jun.1986 Joined Nippon Life Insurance
Company
Mar.2020 Director, Senior Managing
Executive Officer of sameMar.2022 Senior Executive Vice Presidentof same (present position)
Jun.2023 External Director, the Company
Important positions concurrently held

Corporate GovernanceApr.1987 Joined the Company
Apr.2021 Senior Executive Officer, Kintetsu
World Express, Inc.
Jun.2023 Director, Managing Executive
Officer, the Company (present
position)

Apr.1982 Joined the Company
Jun.2016 Director, Managing Executive
Officer, the Company
Jun.2019 President, KNT-CT Holdings Co., Ltd.
(present position)
Jun.2023 Director, the Company (present
position)

Initiatives for Materiality

Director, Nozaki Insatsu Shigyo Co., Ltd.

Senior Officer

Takahisa Kurahashi(Representative Director and President,
Kintetsu Real Estate Co., Ltd.)

Takashi Nishimura(Representative Director and President,
Kintetsu Miyako Hotels International, Inc.)

Nobutoshi Torii(President & CEO, Kintetsu World Express, Inc.)

Yasushi Hara

(Representative Director and President,
Kintetsu Railway Co., Ltd.)

Hideo Fujii(Business Strategy Div.)

Corporate Information

Jun.2007
Apr.2015

Joined the Company
Director, the Company
Managing Director, the Company
Senior Executive Director,
the Company
President, the Company
Chairman of the Board,
the Company
Chairman of the Board andGroup CEO, the Company
Chairman of the Board, theCompany (present position)

Ext

Kazumi Suzuki
Our Value Creation Story

Takashi Tsuji

Chairman of the Board(Representative Director)

Our Value Creation Strategy

Tetsuya Kobayashi

Officers
Hirokazu Kambayashi(Public Relations & Advertising Div. andTokyo Office)Jun Kobayashi(Business Strategy Div.)

Yasuyuki Iida

(Business Strategy Div.)

Kenichi Etou

(Corporate Strategy Div.)

Director, Aioi Nissay Dowa Insurance Co., Ltd.

Important positions concurrently held

Director, ELECOM Co., Ltd.

109

Kintetsu Group Integrated Report 2023

Kintetsu Group Integrated Report 2023

110

Corporate Information

PART

1970

1990

2010

2020

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

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

The Osaka Expo in 1970 spurred
the building of the railway networkand the development of tourism in
the area

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

ABENO HARUKAS, bringing together
the Kintetsu Group’s strengths

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

1930

1940

1950

1929

1960

1980

1970

1947

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

Began operation of a limited
express service between
Uehommachi and Nagoya

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

1970

1990

Opened theHigashiosaka Line

Nara Tramway
Co., Ltd. wasestablished

1914

1948

Real EstateBusiness

1950

1924

Began selling lotsin the Gakuemmae
Residential Area

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

2006

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

2023

2020

2014

Grand Opening of
ABENO HARUKAS

Opened the Keihanna Line1959

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

2010

2009

1986

Transportation
Business

1910

2000

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

2020

2015

Switched to a pureholding company
structure

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

2013

Completedwork to widen
the gauge of
tracks on the
Nagoya Line

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

1969

Opened Kintetsu Kashikojima
Country Club

1973

1980

Completed theKintetsu Namba
Building

1989

2002

2015

Began renovation business

Reorganized the real estate business

Opened Ten-Shiba,
the Tennoji Park
Entrance Area

Began real estate and logistics operations

Initiatives for Materiality

1920

Founding

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

Business diversification

1953

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

Merchandise
Sales Business

1950

1936

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

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

1969

2019

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

1949
Established the Kintetsu Pearls
professional baseball club

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

1979

1968

2018

Opened Miyako
Hotel Tokyo

Established KINTETSU RETAILHOLDINGS CO., LTD.

Opened Miyako
Hotel San Francisco

Hotel and Leisure Business

1926

1941

1951

1985

1994

2004

2016

2021

Opened Ayameike
Amusement Park

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

Began capital
participation in Miyako
Hotels Co., Ltd.
● Opened the Shima
Kanko Hotel

Opened Miyako
Hotel Osaka

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

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

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

Began a joint venture in
the hotel business withBlackstone

1927
Established a rugby team(now Hanazono Kintetsu Liners)

Corporate Governance1910

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

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

Corporate Information

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

During the period of recovery after WorldWar II, in order to provide comfortable train
travel, the company introduced a fee-based
seat reservation system—the first private
railway in Japan to do so—as well as theworld’s first double-decker train cars. Its
department stores also brought in services
that anticipated customers’ needs, such as
through Japan’s first drug stores.

Our Value Creation Story

1945

Our Value Creation Strategy

1910

Messages fromTop Management

The History of the Kintetsu GroupInternational
Logistics Business

111

Kintetsu Group Integrated Report 2023

1948

1955

1970

1989

2015

2022

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

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

Established Kintetsu
Air Cargo
International Co., Ltd.

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

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

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

Kintetsu Group Integrated Report 2023

112

■ Giving back to society in a wide range of areas■ Hanazono Kintetsu Liners are giving back to sports and the region

The Kintetsu Group has grown with its regions, particularly along its lines, and runs
many different forms of social contribution activities.

Hanazono Kintetsu Liners, a rugby team that plays in Japan Rugby League One, has been helping to spread rugby by visiting
schools and giving lessons, and is fostering dreams among the children, sharing the wonder and emotion of sports, and helping
them to grow up healthy. The team also interacts with the people of the region in many different ways, and is working to be loved
by the community.
In fiscal 2022, they took part in more than 70 initiatives in collaboration with Osaka Prefecture and the city of Higashiosaka,including school lessons, chances to try rugby, and agricultural experience programs for adults.

Volunteer activities

Participation in and sponsorship of regional events and sports events,
support for kids’ cafeterias* Kintetsu Group Holdings, Kintetsu Railway Co., Ltd. and other companies
have volunteering leave systems in place.

Supporting recovery after
disasters

Donations and other contributions, fund-raising activities, campaigns
to recover travel demand

High-schooler department store

Our Value Creation Story

Contributing to the region

Harukas School Fair

■ Example activities

We contribute to culture and art, such as by collecting and displaying artworks at The Museum Yamato Bunkakan and otherlocations, and other activities, including caring for art and culture properties.
Facility/Organization

Kinki Nippon Tourist (KNT) has been providing multifaceted school club activity
support since fiscal 2023. Like the PTA duties contracting it has been carrying out
since fiscal 2022, this is an initiative to support schools, and with the continuing crisis
presented by Japan’s low birthrates, one potential cause is the very long working hours
that teachers face, so this support hopes to help address multiple issues associatedwith school club activities. KNT is contributing to the continuation of school club
activities in areas away from the major cities in particular, such as through introducing
online club activities whereby students at schools in places like remote islands canreceived expert instruction, or by taking over administrative duties for the running ofschool club activities on behalf of schools.

Details

The Museum Yamato
Bunkakan

The museum has gathered and displays around 2,000 pieces ofOriental art, including 4 national treasures, one of which is the
Matsuura screens.

Shouhaku Art Museum

The museum collects and displays artworks with a particularfocus on the traditional Japanese-style paintings of three
generations of the distinguished Uemura painting dynasty—
Shoen, Shoko, and Atsushi.

ABENO HARUKAS Art
MuseumWith varied exhibitions, this urban art museum allows anyone toeasily enjoy art and culture.

Kinki Cultural Association &Yamato Cultural Association

The associations hold on-site lectures at archaeological sites orhistoric shrines and temples, as well as public lectures.

ShinkabukizaThis theater inside the Uehommachi YUFURA complex (directly
connected to Osaka-Uehommachi Station) puts on concerts,
musical, stage performances, and more.

School club activities support

Initiatives for Materiality

Ad Kintetsu operates a purchase-based crowdfunding site called Yell Rail, inspiredby the idea of supporting the Kintetsu operational area. The service offers help for thoseplanning to use crowdfunding to tackle the issues that people in the area face, aids inthe designing of plans for thank-you gifts, and supports the launch of project websites.
Examples so far have included the Motto Zutto Shikagami project, which aims tohelp protect the deer and natural environment of Nara Park, and the Recycled Organic
Cotton Socks project, which recycles scraps of fabric from T-shirts to make socks. In
this way, the service is supporting a variety of projects linked to resolving social issues,
revitalizing local industries, or protecting cultural assets.

■ Promotion of art and culture

The Museum Yamato Bunkakan

Corporate GovernanceYell Rail, a crowdfunding source to energize the Kintetsu operational area

Our Value Creation Strategy

Example activities
Workplace experiences/tours, school visits, clean-up activities, safety
patrols for kids going to and from school, providing venues for regional
community volunteer activities, etc.

Shouhaku Art Museum

Support to improve orphanages
KWE India has been participating in efforts by an NGO to put in place orphanages
and better teaching environments for orphans since fiscal 2021. Over the past two
years, the NGO has donated biogas plants to 15 orphanages in the city of Chennai.
Biogas can be used as a substitute for LPG when cooking, and as well as having
excellent heat efficiency, the fuel can help to reduce the use of fossil fuels. The waste
product can also be used as an organic fertilizer. In June 2023, KWE India also started
participating in similar activities in the Gurugram area.

Corporate Information

Theme

Messages fromTop Management

Social Contribution Activities

ABENO HARUKAS Art Museum

113

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Kintetsu Group Integrated Report 2023

114

Financial Data
1. Summary of business results
FY2018FY2019FY2020

FY2021Millions of yen

2. Consolidated financial statements

FY2022

Consolidated balance sheets

Millions of yen

FY2019FY2020

FY2021

FY2022

1,561,002

289,716

257,302331,123

331,569

702,048

Operating profit (loss)

67,77949,380(62,115)

3,864

67,144Non-current assets

1,643,828

1,631,014

1,621,243

1,561,947

1,720,508

Ordinary profit (loss)

67,12947,224(41,959)

30,65874,612

Property, plant and equipment

Profit (loss) attributable toowners of parent

35,962

20,561(60,187)

42,75588,779Depreciation (excluding
depreciation of right-ofuse assets)

52,19653,92454,77951,26956,008

Capital expenditures

78,22968,90755,207

26,547

38,274

EBITDA (*1,*2)

119,975

103,304(7,336)55,142

125,597

Cash flows fromoperating activities

102,319

58,266(25,470)

57,548133,992

Cash flows frominvesting activities(64,148)(57,440)(46,013)44,264(41,855)

1,358,710

1,289,093

1,364,404

17,227

14,963

13,958

169,917

Investments and other assets

220,669

208,918

247,568

258,895

186,186

2,873

2,983

2,681

2,252

2,199

1,936,417

1,891,300

1,955,048

1,895,770

2,424,755

576,515

516,707585,804

504,045779,761

Deferred assets
Liabilities
Current liabilities

946,851

969,296

1,030,748

969,964

1,144,732

1,523,367

1,486,004

1,616,553

1,474,009

1,924,493

Shareholders’ equity

289,027

297,241

227,766

267,809

342,006

Share capital

126,476

126,476

126,476

126,476

126,476

Capital surplus

61,86561,87761,884

61,92754,898Retained earnings

102,039

110,288

40,82980,555

161,795

Treasury shares(1,353)(1,401)(1,424)(1,150)(1,164)

Accumulated othercomprehensive income

93,23879,737

92,829110,812

99,845

Non-controlling interests

30,78428,317

17,89943,13958,410Total liabilities
Net assets(38,905)(12,952)

107,897(102,918)

44,817

Cash and cash equivalents
at end of period

52,08939,78776,32175,765

208,188

Financial position
1,936,417

1,891,300

1,955,048

1,895,770

2,424,755

Equity382,266

376,978

320,595

378,621441,851

Retained earnings

102,039

110,288

40,82980,555

161,795

Interest-bearing debt

1,055,904

1,058,274

1,182,219

1,060,088－

Borrowings

736,264

713,774

792,571

707,144

849,132

Bonds payable319,640

340,500

344,648

312,944385,191－

4,000

45,00040,00045,000Net interest-bearing debt (*3)

1,023,125

1,042,770

1,141,339

1,015,598

1,095,387

Lease obligations (excluding
lease obligations related toright-of-use assets)

－

－

－

－

33,151

Financial indicators

Total net assets
Total liabilities and net assets

413,050

405,295

338,494

421,760

500,262

1,936,417

1,891,300

1,955,048

1,895,770

2,424,755
Millions of yen

Consolidated statements
of income (Summary)

FY2018FY2019FY2020

FY2021

FY2022

Operating revenue

1,236,905

1,194,244

697,203

691,512

1,561,002

Operating expenses

1,169,125

1,144,864

759,318

687,647

1,493,857

Operating profit (loss)

67,77949,380(62,115)

3,864

67,144Non-operating profit (loss)

Operating profit to revenue
from operations (%)

5.5

Ordinary profit to total
assets (%)

3.5

2.5

(2.2)

Profit to equity (%)

9.6

5.4

Equity ratio (%)

19.7

Ratio of interest-bearing
debt to EBITDA (times)

8.8

Ratio of net interest-bearing
debt to EBITDA (times) (*4)

1,404,868

15,755

Non-current liabilities

Cash flows fromfinancing activities

Commercial papers

1,407,403

Intangible assets

Total assets

Cash flows

Total assets

Current assets

8.5

4.3

Non-operating income

11,533

9,065

31,37436,945

19,966

1.6

3.5

Interest and dividend
income

1,186

1,125

833

1,174

1,962

(17.3)

12.2

21.6

7,140

4,848

11,722

21,851

8,710

19.9

16.4

20.0

18.2

Share of profit ofentities accounted forusing equity method
Non-operating expenses

12,498

10.2

－

19.2

－

4.1

10.0

(8.9)

－

0.6

18.4

8.7

Per share information (yen)12,183

11,22011,218

10,152

Interest expense

8,611

7,992

7,864

7,386

8,837

Ordinary pro­fit (loss)

67,12947,224(41,959)

30,65874,612Extraordinary income

9,061

6,962

7,055

40,95253,374Extraordinary losses

20,66918,112

48,601

19,472

21,102

Profit (loss) before income taxes

55,521

36,075(83,505)

52,138106,884

Income taxes–current

16,542

11,438

1,510

6,528

13,057

Income taxes–deferred

(7)

5,664

(14,459)

2,605

2,307

Earnings per share (yen)189.17108.16(316.62)224.81466.81

Net assets per share (yen)2,010.87

1,983.12

1,686.55

1,990.85

2,323.34

Dividends per share (yen)

50.00

50.00

0.00

25.00

50.00

Profit (loss)

38,986

18,971(70,556)

43,00391,519190,662

190,662

190,662

190,662

190,662

Profit (loss) attributable tonon-controlling interests

3,024(1,589)(10,368)

247

2,740

82

81

80

71

197

Profit (loss) attributable toowners of parent

35,962

20,561(60,187)

42,75588,779Other
Issued shares(thousands of shares)
Consolidated subsidiaries(companies)*1 EBITDA = Operating profit + Depreciation and amortization of goodwill (excluding depreciation of right-of-use assets)*2 Starting from FY2021, EBITDA retroactively includes amortization of goodwill.
*3 Net interest-bearing debt = Interest-bearing debt (excluding lease obligations related to right-of-use assets) - Cash and deposits*4 FY2020 result is a negative number, therefore it is represented as “-”.
*5 “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied for FY2021 and thereafter.
Kintetsu Group Integrated Report 2023

Our Value Creation Story

691,512

Our Value Creation Strategy

697,203

Initiatives for Materiality

1,194,244

Corporate Governance

1,236,905

Corporate Information

Operating revenue

Messages fromTop Management

AssetsOperating results

115

FY2018

Note: “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied for FYE March 2022 and thereafter.

Kintetsu Group Integrated Report 2023

116

Financial Data

Kintetsu Group Companies(as of September 30, 2023)●：Consolidated subsidiaries:

197
41▲：Equity-method affiliates:
11△：Non-equity-method affiliates:
7○：Unconsolidated subsidiaries:

Kintetsu Group companies total: 257 (incl. Kintetsu Group Holdings)

28,347

26,71022,64017,11022,50821,42622,226

14,975

13,91019,126

164,245
77,72547,374
43,408
－
－
－
－
－
－
－
－
393,670
282,220
112,647
481,818
57,389411,821
3,618
9,175
18,174

161,248
75,59747,713
43,583
－
－
－
－
－
－
－
－
392,796
283,047
111,039449,276
51,559385,3623,882
8,626
19,110142,965
60,13447,40440,299
－
－
－
－
－
－
－
－
313,110
218,149
95,673
114,177
20,69887,8892,857
2,732
18,665

184,984
70,697
79,34539,414
－
－
－
－
－
－
－
－
188,246
97,53490,712
166,681
20,216
139,957
3,001
3,506
26,884

163,831
82,494
43,20042,038710,855
205,213
99,48556,172
149,338
110,037
127,217
4,316
202,738
108,00994,728292,638
30,348252,152
3,344
6,792
35,545Note 1: “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied for FYE March 2022 and thereafter.
Note 2: International logistics segment has been added to the reportable segments from FYE March 2023.

Operating profit (loss)
Transportation
Real estate
International logistics
Merchandise sales
Hotel and Leisure
Other
Operating profit to revenue
from operations (%)
Transportation
Real estate
International logistics
Merchandise sales
Hotel and Leisure
Other
Total assets
Transportation
Real estate
International logistics
Merchandise sales
Hotel and Leisure
Other
Depreciation (excluding depreciation ofright-of-use assets)
Transportation
Real estate
International logistics
Merchandise sales
Hotel and Leisure
Other
Capital expenditures
Transportation
Real estate
International logistics
Merchandise sales
Hotel and Leisure
Other

117

Kintetsu Group Integrated Report 2023

5.5
14.5
11.4
－
2.0
1.3
8.2
1,936,417
952,451594,594－
160,445
198,233
25,180FY201949,38027,686
17,919－5,152(3,693)
1,581
4.1
12.5
11.1
－
1.3
(0.8)
8.3
1,891,300
940,259596,264－
160,826
146,158
25,553

FY2020(62,115)(24,670)
14,833－(4,668)(49,242)
1,453
(8.9)
(16.4)
10.4－(1.5)(43.1)
7.8
1,955,048
953,538
605,520－
152,576
115,938
24,921

Real estate【13】Railways (5)Real estate sales (3)● Kintetsu Railway Co., Ltd.

● Kintetsu Real Estate Co., Ltd. (Overlap with real estate leasing)▲ Nara Ikoma Rapid Railway Co., Ltd.

● Kintetsu Landscape Design & Engineering Co., Ltd.

○ Iga Railway Co., Ltd.

▲ Mie Kotsu Group Holdings, Inc.

○ Yoro Railway Co., Ltd.
○ Yokkaichi Asunarou Railway Co., Ltd.

Bus services (16)Real estate leasing (6)● Kintetsu Real Estate Co., Ltd. (Overlap with real estate sales)○ Kintetsu Golf & Resort Inc.

● Kintetsu Bus Holdings Co., Ltd.

○ KINTETSU SMILE LIFE INC.

● Kintetsu Bus Co., Ltd.

△ Nara Kanko Tochi Corporation● Nara Kotsu Bus Lines Co., Ltd.

Other ○ 1 company △ 1 company● Nako Service Co., Ltd.
○ NARA CONVENIENT BUS LINES Co., Ltd.

Real estate management (5)○ Nako Car Maintenance Co., Ltd.

● Kintetsu Facilities Co., Ltd.

○ Nara Kanko Bus Co., Ltd.

● MiDI Corporation○ Meiko Bus Co., Ltd.

● KINTETSU-COMMUNITY CO., LTD.

● KITANIPPON KANKO BUS Co., Ltd.

Other △ 2 companies○ KITANIPPON KANKO RYOKOU Co., Ltd.
● Bocho Bus Company Limited○ Bocho Kanko Bus Co., Ltd.
○ Bocho Travel Co., Ltd.
○ Hagi Kanko Hotel Co., Ltd.
○ Kyowa Automobiles Co., Ltd.

Other △ 1 company

Taxi services (15)● Kintetsu Taxi Holdings Co., Ltd.
● Kintetsu Taxi Co., Ltd.
● Mie Kintetsu Taxi Co., Ltd.
○ Kameyama Kotsu Co., Ltd.

International logistics【134】International logistics (134)● Kintetsu World Express, Inc.
● KINTETSU LOGISTICS SYSTEMS, INC.
● Kintetsu Cosmos, Inc.
● Kintetsu World Express Sales, Inc.
● Kintetsu Trading Service Co., Ltd.
● APL Logistics Ltd○ Kintetsu Toubi Taxi Co., Ltd.

FY2021
3,864(2,721)
29,346－(1,513)(21,685)
1,708
0.6
(1.7)
15.9
－
(0.8)
(13.0)
6.4
1,895,770
934,611547,866－
145,997
141,276
48,681

FY2022
67,144
13,06916,024
23,317
2,704
9,152
3,460
4.3
6.8
9.8
3.3
1.3
3.1
9.7
2,424,755
934,163546,088615,909145,388
182,664
52,63852,19653,92454,77951,26956,00827,185
11,558
－
7,049
4,392
1,728
78,22927,97034,927
－
7,739
6,004
1,254

27,741
12,146
－
7,606
4,478
1,630
68,90728,915
19,912
－
9,699
8,792
1,230

28,42012,550
－
7,536
4,337
1,688
55,20730,46913,949
－
4,736
3,876
2,049

27,844
11,560
－
7,550
2,361
1,717
26,547
12,606
5,215
－
5,455
2,271
1,117

26,436
10,020
8,297
7,417
1,798
1,789
38,274
20,109
4,188
5,894
4,058
2,001
2,121

○ Gifu Kintetsu Taxi Co., Ltd.
● Ishikawa Kintetsu Taxi Co., Ltd.
○ EHIME KINTETSU TAXI Inc.
● Hokko Daiwa Taxi Co., Ltd.
● NARA KINTETSU TAXI Co., Ltd.
○ Bocho Taxi Holdings Co., Ltd.
○ Hiroshima Kintetsu Taxi Co., Ltd.
○ Shunan Kintetsu Taxi Co., Ltd.
○ Hagi Kintetsu Taxi Co., Ltd.

Freight services (1)○ NARA POST TRANSPORT Co., Ltd.

Transportation advertising (1)● AD KINTETSU CO., LTD.

Maintenance of railway facilities (5)● Kintetsu Engineering Holdings Co., Ltd.

● Kintetsu Track Engineering Co., Ltd.
● ALL NIPPON ENGINEERING CONSULTANTS CO., LTD.

Merchandise sales【13】● Tourist Experts Inc.
● Kinki Nippon Tourist Okinawa, Inc.
● KBC Co., Ltd.
● Event & Convention House, Inc.
● KINTETSU INTERNATIONAL EXPRESS(U.S.A), INC.
● KNT-CT IT Solutions Co., Ltd.
● Cosmopolitan Creative Lab Co., Ltd.

Other ● 5 companies ▲ 1 company

Cinema (1)● Kin-Ei Corp.

Aquarium (1)● Osaka Aquarium Kaiyukan Co., Ltd.

Travel facilities (4)● Kintetsu Leisure Create Co., Ltd.
● KASHIKOJIMA HOJOEN Co., Ltd.
● Shima Spain Village Co., Ltd.
○ Shima Marine LeisureCo., Ltd.

Other (2)○ Asuka Golf Co., Ltd.
○ Shin Wakakusayama Motorway Co., Ltd.

Rolling stock manufacturing (1)▲ The Kinki Sharyo Co., Ltd.

Industrial metal product manufacturing (1)● Kinki Transportation Service Co., Ltd.
● Japan Foods Create Co., Ltd.
● Kintetsu Tomonokai Co., Ltd.
● Stern Kintetsu Co., Ltd.
● KINSO Co., Ltd.
○ K-SUPPORT Co., Ltd.

Stores and restaurants (6)● KINTETSU RETAIL HOLDINGS CO., LTD.
● Kintetsu Retailing Co., Ltd.
● Kinsho Store Co., Ltd.
○ Kintetsu Restaurant International Co., Ltd.
● Mie-KK Road & Highway Service Area Co., Ltd.

Other ○ 1 company

Hotel and Leisure【36】Hotels (5)● Kokudo Kyushi Ferry Co., Ltd.

○ HAKONE KOGEN HOTEL Co., Ltd.
○ OKUNIKKO KOGEN HOTEL Co., Ltd.
● Kintetsu Enterprises Company of America

Other △ 1 company

Ropeway (1)Travel agency (23)○ Beppu Ropeway Co., Ltd.

● KNT-CT Holdings Co., Ltd.

Other (3)● Tourist International Assistance Service, Inc.

● Kintetsu Department Store Co., Ltd.

● Kintetsu Miyako Hotels International, Inc.

● Kintetsu Rent-A Lease Co., Ltd.

● SANKI Travel Service Co., Ltd.

Department stores (7)Marine transportation (1)Rent-a-car service (1)● Kinki Nippon Tourist Shoji Co., Ltd.

Other【12】● Kintetsu Electrical Engineering Co., Ltd.
● Kintetsu Railcar Engineering Co., Ltd.

● United Tours Co., Ltd.

Other ● 121 companies ○ 1 company ▲6 companies● Nagoya Kintetsu Taxi Co., Ltd.

Millions of yen

FY201867,77932,943
18,698
－
7,783
6,185
1,491

Transportation【48】Messages fromTop Management

FY2022
1,561,002
191,736
128,564
30,087
9,264● SAKAE CO., LTD.

Cable televisions (5)Our Value Creation Story

FY2021
691,512
158,907
107,006
25,065
7,854

Our Value Creation Strategy

FY2020697,203150,218
99,23422,605
7,520

Initiatives for Materiality

FY20191,194,244
221,711
152,724
33,721
11,089● Kintetsu Cable Network Co., Ltd.
○ Komadori Cable Co., Ltd.
○ Kintetsu Cable Network Kyoto Co., Ltd.
○ KCN Nantan Co., Ltd.
△ TV KISIWADA CO., LTD.

Information processing (1)● Kintetsu Information System Co., Ltd.

Insurance agency (1)Corporate GovernanceOperating revenue
Transportation
Railways
Bus services
Taxi services
Maintenance of railway
facilities
Other transportation-related
business
Real estate
Real estate sales
Real estate leasing
Real estate management
International logistics
Japan
Americas
Europe, Middle East, and Africa
East Asia
Southeast Asia and Oceania
APLL
Other logistics businesses
Merchandise sales
Department stores
Stores and restaurants
Hotel and Leisure
HotelsTravel agency
CinemaAquarium
Other

Millions of yen

FY20181,236,905
226,754
156,444
34,636
11,537● Kintetsu Insurance Service Co., Ltd.

Construction (1)▲ DAI NIPPON CONSTRUCTION CO., LTD.

Food hygiene (1)○ KURASHI KAGAKU LABORATORY CO., LTD.

Other (1)Corporate Information

3. Segment information○ Kintetsu Venture Partners, Inc.

● Club Tourism International Inc.
● Club Tourism Life Care Service Co., Ltd.

● Kintetsu Railway Co., Ltd. (Overlap with railroads)● Club Tourism Space Tours Inc.

○ Kongou Katsuragi Tourism Development Co., Ltd.

● Kinki Nippon Tourist Co., Ltd.

○ Kintetsu Ikoma Leisure Co., Ltd.

● Kinki Nippon Tourist Blue Planet Co., Ltd.

* Arranged by accounting segment.

Kintetsu Group Integrated Report 2023

118

Company Overview and Stock Information (as of March 31, 2023)

June 1, 1944

Name

Number ofshares held
(thousand shares)

Composition ratios
to total number ofshares (excluding
treasury shares)

The Master Trust Bank of Japan, Ltd.
(Trust Account)

26,442

13.9

Custody Bank of Japan, Ltd.
(Trust Account)

8,013

4.2

Nippon Life Insurance Company

4,198

2.2

STATE STREET BANK WEST
CLIENT - TREATY 505234(Standing Proxy: Mizuho Bank, Ltd.)

4,032

2.1

JP MORGAN CHASE BANK
385781(Standing Proxy: Mizuho Bank, Ltd.)

2,410

1.3

MUFG Bank, Ltd.

2,250

1.2

STATE STREET BANK AND
TRUST COMPANY 505103(Standing Proxy: Mizuho Bank, Ltd.)

1,672

0.9

SSBTC CLIENT OMNIBUS ACCOUNT(Standing Proxy: The Hongkong
and Shanghai Banking Corporation
Limited Tokyo Branch)

1,667

0.9

Meiji Yasuda Life Insurance
Company

1,629

0.9

Mitsubishi UFJ Trust and Banking
Corporation

1,500

0.8

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

Head office address

6-1-55 Uehommachi, Tennoji-ku, Osaka
543-8585, Japan

Capital¥126.476 billion

Number of employees

269

Stock exchange listing

Tokyo Stock Exchange (Prime Market)

Accounting auditor

KPMG AZSA LLC

Stock / shareholder status
Type of stock issued

Common stock

Authorized shares

500,000,000

Issued shares

190,662,061

Number of shareholders

211,434

Share distribution by shareholder type
Government andLocal Government
0.0%
Financial
institutions
30.2%

Foreigncorporations, etc.
19.6%

* Figures are rounded down to the nearest whole thousand.
Financial
instruments
business
operators
1.3%

Other
corporations
7.0%

Adoption in ESG indexes (as of June 30, 2023)● FTSE Blossom Japan Sector Relative Index

Corporate GovernanceIndividuals
and others
42.0%

Our Value Creation Story

Kintetsu Group Holdings Co., Ltd.

Established

Our Value Creation Strategy

Trading nameMessages fromTop Management

Major shareholders

Initiatives for Materiality

Company overview● S&P/JPX Carbon Efficient Index● MSCI Japan Empowering Women Index* Percentage calculations exclude shareholders holding less than one share.

● Morningstar Japan ex-REIT Gender Diversity Tilt Index

Stock price (yen)
6,000

Trading volume (thousand shares)
30,0005,000

25,0004,000

20,0003,000

15,0002,000

10,000

1,000

5,000

0

0
April
2018

119

Corporate Information

Stock price and trading volume

April
2019

Kintetsu Group Integrated Report 2023

April
2020

April
2021

April
2022

April
2023

Kintetsu Group Integrated Report 2023

120