INTEGRATED REPORT 2023

Securities code: 9042

Group Business Plan Framework

Group Management Philosophy

Contributing to a Sustainable SocietyGroup

anagement Philosophy
MissionCommunities

Partners

What we try to achieve

Employees

Nextgeneration

Creditors
Customers

Shareholders

By delivering Safety and Comfort andDreams and Excitement, we create satisfaction
among our customers and contribute to society.

Sustainably Enhance Corporate Value

ValuesWhat is important to us

Long-Term Vision

Customers First

Sincerity

Medium-Term Management Plan

Everything we do is for the customer.

Gain customers conﬁdence

That s where it all starts.

by always being sincere.

Foresight & Creativity

Respect for People

With our pioneer spirit and ﬂexible

Everyone is absolutely

thinking, we create a new value.

invaluable to the Group.

Sustainability Declaration
Group Management Philosophy

Principles

How to act to uphold our values and ful ll our mission
Group Management Philosophy
Sustainability Declaration
See page 45 for details.

Long-Term Vision
Medium-Term Management Plan
See pages 25‒30 for details.

Our value to society
1. We treasure encounters with people, and do our best in the position of a customer.

The core elements underlie our pursuitof sustainable growth

The vision and strategy for the Groupʼs sustainable growth,and the speciﬁc plans for their implementation

2. We abide by the laws and regulations, and act with a clear awareness of our social
responsibilities.
3. We take pride and responsibility in our work, and carry it out promptly.
4. We are not concerned with what is just before us, but think from medium- and long-term
perspectives.
5. We are not satisﬁed with present conditions, but ﬁx our eyes on the future and act.
6. We have caring feelings and respect each other.
7. We communicate in a lively way and create a workplace with a positive atmosphere.
8. We cooperate with one another for the prosperity of the Group.

1

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

2

Creating Real Value:
Our Story

ProﬁleProﬁleCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Contents

Message from the Chairman

00
On the Publication of
Our Integrated Report
In keeping with the Hankyu Hanshin Holdings Group s
management philosophy, we remain committed todelivering safety and comfort as well as dreams andexcitement as a means of maintaining customer
satisfaction while contributing to society at large. At
the same time, we are maintaining our focus onachieving

Long-Term

Vision:Toward2040,

theconcept we formulated in 2022 that encompasses
strategies grounded in sustainable management as

Kazuo Sumi

In Hankyu Hanshin Holdings Integrated Report

2023, we have presented both ﬁnancial and non-Creating Real Value: The Processes

1Group Business Plan Framework45

2Group Management Philosophy

47

Human Capital̶Empowering Individuals

3

Message from the Chairman
On the Publication of Our Integrated Report

53

Task Force on Climate-related Financial Disclosures (TCFD)

5

Value Creation Trajectory

56

Business Strategy

7

Business Overview

9Service Area

13

Financial Highlights / Non-Financial Highlights

01

Creating Real Value: Our Story

17

Value Creation Process(Overall Long-Term
Vision)19

Message fromthe President

set forth in our Sustainability Declaration.

Chairman and
Representative Director,
Group Chief Executive
Oﬃcer

02

Pro le03

ﬁnancial information in an integrated manner in order

Sustainable Management

56

Urban Transportation

59

Real Estate

64Entertainment

67

Information and Communication Technology

69

Travel71

International Transportation

Creating Real Value: The Foundations

75

G Priority Issue 6 Robust governance83

Directors and Audit & Supervisory Committee Members

85

Outside Directors and Chairman Roundtable Discussion

to provide stakeholders with detailed yet easy-tounderstand explanations of the policies and strategies
we are implementing to enhance our corporate value
over the medium and long terms.
In this report, our ﬁfth since our inaugural edition
was published in ﬁscal 2019, we have introduced new
disclosures on our Scope 3 CO₂ emissions (see page

25

Long-Term Vision: Toward 2040

27

Outline of Our Medium-Term Management Plan
(Fiscal 2023‒2026)

3191). We have done so in acknowledgment of theimportance of eﬀorts to reduce emissions attributable
to the supply chain and other such sources. We also
report on the roundtable discussion we have heldwith outside directors (see page 85) to address the35

current status and future challenges of our Group s
focus on sustainable management. Through these
new additions, we have sought to enrich the content
of this publication by addressing matters of broad

37

market interest.
We trust this report will help to deepen yourSpecial Feature 1

Umeda and Line-Side
Communities Are Driving
Growth in Accordance with
the Long-Term Vision
Special Feature 2

Another Driver of Growth inLine with the Long-Term Vision(Overseas Real Estate)

We look forward to your continued support in the
October 2023

40

The Pursuit of Safety andPeace of Mind in the Railway
Business

Deﬁnition of the areas served by the Hankyu and Hanshin lines:
Below are lists of areas with Hankyu Corporation and Hanshin Electric Railway
stations (including tier 2 railway operators).
Osaka Prefecture: Osaka City (Fukushima, Konohana, Nishi, Naniwa, NishiYodogawa, Higashi-Yodogawa, Yodogawa, Kita, and Chuo,
out of a total of 24 wards); and Toyonaka, Ikeda, Suita,
Takatsuki, Ibaraki, Minoh, and Settsu cities and Shimamoto
town
Hyogo Prefecture: Kobe City (Higashi-Nada, Nada, Hyogo, Nagata, and Chuo, outof a total of 9 wards); and Amagasaki, Nishinomiya, Ashiya,
Itami, Takarazuka and Kawanishi cities
Kyoto Prefecture: Kyoto City (Nakagyo, Shimogyo, Ukyo, and Nishikyo, out of a
total of 11 wards); and Muko and Nagaokakyo cities andOyamazaki town

3

Hankyu Hanshin Holdings Integrated Report 2023

Period under Review
This integrated report is based on the ﬁscal year 2023 (April 2022‒March 2023),
however it also includes information pertaining to activities before and after this period.
Forward-Looking Statements
The reader is advised that this integrated report contains forward-looking
statements regarding the future plans, strategies, and earnings performance ofHankyu Hanshin Holdings, Inc., which are not statements of historical fact but
constitute estimates or projections based on facts known to the Company s
management as of August 2023. Actual results may be inﬂuenced by various
business risks and uncertainties, and diﬀer substantially from such statements.
About the Compilation of this Integrated Report and the Auditing Company Used
The ﬁnancial section of this integrated report includes a digest of information
including consolidated ﬁnancial statements in the Company s Securities Report forthe 185th period, audited by KPMG AZSA LLC and presented in a somewhat
modiﬁed format. We have presented this information in such a way as to ensurethat there is no discrepancy with the data presented in the annual securities report.
However, the integrated report itself has not been audited by KPMG AZSA LLC.

E Priority Issue 5 Environmental protection

94

Participation in Initiatives and External Evaluation

97

Financial Section and Corporate Data
Consolidated Eleven-Year Summary

99

Business Risks

101

Consolidated Balance Sheets

Special Feature 4

103

Working toward Carbon
Neutrality

Consolidated Statements of Income/Consolidated Statements of Comprehensive Income

104

Consolidated Statements of Changes in Net Assets

106

Consolidated Statements of Cash Flows107

Notes to the Consolidated Financial Statements

138

Others139

Major Group Companies

140

Company Overview and Investor Information

Editorial Policy
This integrated report, in addition to a review of ﬁscal 2023, also
describes the management policies and ESG-related initiatives ofHankyu Hanshin Holdings, Inc. It is intended to aid all those who read it,
beginning with our shareholders and investors, in gaining a deep
understanding of our Company.

S Priority Issue 4 Empowering individuals

91

04

Special Feature 3

understanding of our Group and its initiatives.
years ahead.

89

Reference Guidelines
This report references
the International
Integrated Reporting
Framework set by theInternational Integrated
Reporting Council̶now
part of the IFRSFoundation̶and theMinistry of Economy,
Trade and Industry s
Guidance forCollaborative Value
Creation. It also
references the Global
Reporting Initiative s GRI
Standards for its ESG
information.

Role of Each of Our Publications
Publication

Sustainability Data Book

Contents

The Sustainability Data Book provides
detailed information on our ESG
approach, targets, initiatives, data,and other topics.

Integrated Report(this report)

Particulars as per the Contents page.

Group Guide

We compile an annual Group Guide to aid in understanding of the Groupoutline. This Group Guide includes an outline of the scope of Groupbusinesses, and a list of Group companies.

Securities Report(Japanese only)

Based upon Article 24, Paragraph 1 stipulated in the Financial Instruments
and Exchange Act, this report is required to be submitted to the Kanto Local
Finance Bureau. Please consult this report for detailed ﬁnancial information.

Corporate
Governance Report(Japanese only)This report is in accordance with Japan s Corporate Governance Code and isrequired to be submitted to the Tokyo Stock Exchange. Please consult thisreport for information on our Corporate Governance stance and systems.

Sustainability
Data Book

This data book contains detailed information regarding our Group s ESG
initiatives. Please consult this data book for particulars about our ESG strategy.

Safety Report(Japanese only)

In observance of Article 19, Paragraph 4 of the Railway Business Act, thisreport is aimed at promoting a broad understanding of our eﬀorts toward
preserving transportation safety. It systematically presents information about
safety for each of our railway companies (Hankyu Corporation, Hanshin
Electric Railway, Kita-Osaka Kyuko Railway, and Nose Electric Railway).

Social:Respect human rights, ensuringbusiness safety and reliableness,
contribute to local communities,
improve employee satisfaction andcreate a more positive workplace,occupational safety & health andhealth management
Environment:
Environmental management, climatechange, pollution and resources,
biodiversity, and water resources
Governance:
Corporate governance, thoroughcompliance and corruption
prevention, risk management, andtaxation transparency

Hankyu Hanshin Holdings Integrated Report 2023

4

ProﬁleProﬁleCreating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Value Creation Trajectory
We have provided never-before-seen services one after another in a range of ﬁelds, from the development of residential and commercial
facilities to the provision of attractive entertainment, such as Hanshin Tigers games and Takarazuka Revue performances, based on ourrailway operation business. By doing so, we have contributed to high-quality community building, particularly in the areas along our railway
lines, while also ushering in new eras for society. In these ways, we have left our mark across the more than 100 years of our history.

1907

Establishment of the Minoh‒Arima Electric
Railway Company (the forerunner toHankyu Corporation)

1899

Establishment of Settsu Electric Railway(currently Hanshin Electric Railway)

1905

Opening of railway line
Kobe (Sannomiya)‒outer Osaka(Deiribashi)

A Robust Transportation Network

Attractive line-side areas
formed over a century

Hankyu Corporation and Hanshin Electric Railway began operations in the early
1900s. Over a full century, we expanded our railway network on the businessmodel of attracting people to the areas along the lines by developing residential
areas and through other means to increase the number of railway passengers.
Today, we have built an extensive transportation network in the Kansai region that
includes bus and taxi services, primarily in the Keihanshin area that includes Kyoto,

Total length of railway lines
Hankyu Corporation
Hanshin Electric Railway

143.6 km48.9 km

Osaka, and Kobe. This network serves as important social infrastructure, providing
people with safe, secure, and comfortable transportation services.

1910

Opening of railway lines
Takarazuka Line (Umeda‒Takarazuka) and
Minoh Line (Ishibashi‒Minoh)
Launch of land subdivision business(Start of sales of Ikeda Muromachi
Residential Land Plots)

The Group has built on this railway operation business, expanding into real

1909

estate development, entertainment, and a number of other ﬁelds over the course

Launch of land and buildings leasing
business(completion of 30 rental houses infront of Nishinomiya Station)of more than a century, working to develop services that provide high customer
satisfaction and oﬀer new value to people along those rail lines. In these ways wehave built a reliable reputation, growing the line-side areas around transportationlines that form the core of the Group s business.

Number of railway passengers carried(actual FY2023 ﬁgures)

HankyuCorporation

Approx.

HanshinElectric Railway

Approx.

1913

Formation of Takarazuka Girls Revue(currently Takarazuka Revue Company)

1924
1935

1926

Establishment of Osaka Baseball Club
(Osaka Tigers, currently Hanshin
Tigers)Positive Urban Development

Competitive advantage
cannot be developed in a day

To increase the number of passengers along the railway lines, Hankyu
Corporation s founder, Ichizo Kobayashi, actively pursued other forms ofdevelopment in addition to building residential areas. Those endeavors include thestill-popular Takarazuka Grand Theater and the world s ﬁrst department store at a
train terminal, the Hankyu Department Store. In the Osaka-Umeda area, theGroup s largest business base, we have continued to develop oﬃce buildings andcommercial facilities connected directly to the train station, establishing the area as
the Kansai region s largest terminal. After the establishment of Hankyu Hanshin

1948

Launch of Hankyu Corporation s airline
agency(ﬁrst Pan American Airways agency
agreement in Japan)
Acquisition of Japan s ﬁrst IATA air cargoagency license

218,700,000
See pages 9 and 10

Opening of Koshien Stadium(later renamed Hanshin Koshien
Stadium)

Opening of Takarazuka Hotel

571,600,000

Holdings, development has accelerated even further to make the area even more1948

attractive, taking advantage of the Group s greater total strength.

Launch of Hanshin Electric Railway s
airline agency businessWith a long history of business wedded to this region, our competitiveness isrooted in this drive to oﬀer new enrichment and lifestyle options to people through1950

urban development that attracts people to line-side areas to visit or live.

Acquisition of IATA air cargo agency
licenseLeasable area (at the end of FY2023)

Approx.

2.23 million m²

Most Desirable Towns to Live In( ansai region)* An investigation conducted by MAJOR 7 (Sumitomo Realty &Development and six other companies) on October 6, 2022

1st: Osaka-Umeda Station
Osaka Station
2nd: Nishinomiya-kitaguchi Station
3rd: Shukugawa Station
Top three are all on Group railway lines

1952

See pages 10 and 59

Establishment of Hankyu Real Estate(currently Hankyu Hanshin Properties)

1960

Establishment of Hankyu Kokusai Kotsu-sha(currently Hankyu Travel International)

1967

Opening of Hotel Hanshin (currently
Hotel Hanshin Osaka)

2006 Establishment of Hankyu Hanshin Holdings, Inc.

Exciting Content

Providing real-world value,o ering dreams and excitement

Entertainment is one of the unique strengths of the Group, and two of our mostimportant assets are the Takarazuka Revue and Hanshin Tigers.
The Takarazuka Revue began with a singing troupe performing operas in atheater converted from an indoor swimming pool facility. The Takarazuka Revue,with its motto, Modesty, Fairness, Grace, is loved by people across Japan and2008

Opening of the Hankyu Nishinomiya Gardens Main Building

abroad, and will celebrate its 110th anniversary in 2024. The Hanshin Tigers

2009

Opening of operations of Hanshin Namba Line
(Nishikujo‒Osaka-Namba)

90-year history and the strong support of local fans and people who love its home,

2012Completion of Umeda Hankyu Building project (currently Osaka
Umeda Twin Towers North)the Hanshin Koshien Stadium.
Besides entertainment, the Group runs a travel business, centering on the
Trapics brand, focusing on fulﬁlling a diverse and growing range of travel needs.
is again being recognized. We will continue to develop and reﬁne all of this uniqueCompletion of Osaka Umeda Twin Towers South project

Approx.

2,620,000

started out as the Osaka Baseball Club, established in 1935, so it has a nearlyIn the aftermath of the COVID-19 pandemic, the value of real-world experiences2022

Total attendance at Hanshin Tigers
home games (2022 season)content to oﬀer excitement and encourage people to dream.

Takarazuka Revue total attendance ofperformances (actual FY2023 ﬁgures)

Approx.

2,780,000
See page 10

5Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

6

Creating Real Value:
Our Story

ProﬁleProﬁleCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Business Overview
The Hankyu Hanshin Holdings Group has core businesses in six business domains: Urban Transportation, Real Estate, Entertainment,
Information and Communication Technology, Travel, and International Transportation. Further, under the direction of the Company, which
supervises the Group s management, these businesses are operated by ﬁve core companies: Hankyu Corporation, Hanshin Electric Railway
Co., Ltd., Hankyu Hanshin Properties Corp., Hankyu Travel International Co., Ltd., and Hankyu Hanshin Express Co., Ltd. Through these corebusinesses and companies, we will foster organic growth across the entire Group.

Fiscal 2023 Results Summary＊

Hankyu Hanshin Properties

Real Estate

Real estate sales and other businessThis business markets condominiums, residential land lots, and detached houses, mainly in theline-side areas of the Hankyu and Hanshin lines, and the Tokyo metropolitan area. The business is
engaged in property management, building maintenance, and real estate fund/REIT management,
including private placement funds and J-REIT operations.

See page 59

Sports businessThis business manages the Hanshin Tigers professional baseball team as well as
the team s home ground and high-school baseball mecca Hanshin Koshien Stadium
and related businesses. The business also operates a music business (Billboard
Live).
Stage businessThis business manages the performances of the Takarazuka Revue, and manages
and operates related businesses engaged in original merchandise sales and video
and music streaming. Further, the business operates Umeda Arts Theater andcreates and promotes theatrical productions.

Entertainment

See page 64

18

16

968,300
million19
6

Hanshin Electric Railway

Information andCommunication
Technology

See page 67

15,257 million
16

28

5,917 million

282,049 million

60,355 million

3

9

24

22,435 million

29

27,851 million

Consolidated
total:

89,350
million

6
13

7
12,622 million

72,289 million■ Changes in operating proﬁt(¥ billion)
100
80(Increased pro t (about 20.0 billion) from response totemporary demand spike)
In travel, pandemic-related operations for local authorities
Pressing demand for international transportation

Increase of 50.1 billion

89.4

60
Information and communication technology businessThis business is in charge of the information services business, which oﬀers a rangeof IT-based services such as system development; the broadcasting andcommunications business, which provides multi-channel broadcasts, internet
services, and ﬁxed telephone services; and the safety/education business, which
operates ProgLab robot programming classes for children, and Mimamorume, achild safety service which monitors children s journeys to and from school.

8,381 million

185,581 million

Consolidated
total:

191,400 million■ Other

2,752 million

6163,269 million■ International transportation

Operating pro t

55,649 million

Overseas real estate business
Building on results in Japan, the business is developing residential sales and leasing businesses
elsewhere, particularly in the ASEAN region.
Hotel businessThis business operates a wide range of hotel formats in many regions but
particularly Tokyo and Osaka.

■ Travel

40
20

Increase of(¥ billion)
100

About
20.0 billion＋21.0 ＋0.4

80

＋16.8

60

39.2
FY2022
results

FY2023
results

39.2

40

FY2022
results

20

0＋8.4 ＋3.4 ＋0.1

0

＋0.1
Other/adjustments

Leasing businessThis business owns commercial facilities, oﬃce buildings, and other facilities, mainly in the
Osaka-Umeda area and the line-side areas of the Hankyu and Hanshin lines. The business has been
actively pursuing development of real estate, including in the short-term-return (ﬁx-and-ﬂip) business.

■ Information and communication technology

Internationaltransportation

Retailing businessThis business manages shops mainly inside railway stations on the Hankyu andHanshin lines.
See page 56■ Entertainment

Operating revenue

Automobile business (bus, taxi)
This business operates bus and taxi services, which coordinate with railway
services to increase convenience in line-side areas.

Urban
Transportation■ Real estate

TravelHankyu Corporation■ Urban transportation

Information andcommunication
technology

Railway operation business
The railway network in the Kansai region is centered on Hankyu Corporation andHanshin Electric Railway, which operate 143.6 km* and 48.9 km* of track
respectively.
*Including tier 2 railway operators

Note: Calculated based on the simple aggregate amount (including intersegment transactions) of each segment.

Entertainment

Nature of Business

Real estateCore Companies

Urban
transportation

Core Businesses

50.1 billion

89.4

FY2023
results

In ﬁscal 2023, the eﬀects of the pandemic continued to be felt, but many business segments saw at least some recovery. Added
to this, in our travel business, we received a much larger number of orders from local governments to support those recovering
at home. As a result, revenues and proﬁt increased compared to ﬁscal 2022.

Hankyu Travel International

TravelSee page 69

Hankyu Hanshin Express

International
Transportation

7

Travel businessThis business plans, markets, arranges, and supports travel for Japanese people inoverseas and Japan and for inbound tourists. The business provides various travel
services which include: media sales to sell packaged tours, group tours that we
propose for study or as educational tours, counter sales at shops, tours for inboundinternational visitors and arrangements for overseas business trips. As well as
providing contracted call center services, the business provides solutions for avariety of contracted tasks for national and local authorities.

International transportation businessAs a global forwarder, we have established bases in regions all over the world anddeveloped a comprehensive international logistics business. As the global businessdiversiﬁes, we provide a one-stop logistics solution that is optimized to ourcustomers diverse needs by bringing together air freight, sea freight, and logistics
services as a logistics consultant.
Domestic bases: 47 / Overseas bases: 148 (As of September 1, 2023)
See page 71

Segment assets
42,742 million(As of the end of FY2023)

72,019 million
88,245 million
72,196 million
113,110 million

4 3

3

3

2
31

861,185 million

Consolidated
total:

2,865,410
million55

1,537,946 million* As for our real estate business, Hankyu Corporation and Hanshin Electric Railway collaborate with Hankyu Hanshin Properties to promote urban development of real estate
owned by Hankyu Corporation and Hanshin Electric Railway for rent and development in cooperation with transportation networks, local governing bodies and others in
Osaka-Umeda and their line-side areas.
Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

8

Service Area

Kobe Line46.9 km

Takarazuka Line 28.5 km

Kyoto Line

65.4 km

Kobe Rapid
2.8 kmTransit Railway Line

(Kobe Line, Imazu Line, Itami Line, Koyo Line)

HankyuArashiyama Line

Kyoto
Prefecture(Takarazuka Line, Minoh Line)

43.9 km

Hanshin Line

5.0 kmOsaka
Prefecture
HankyuMinoh Line

110%

Takatsuki-shi

HankyuImazu
LineHankyu Koyo Line
Hankyu Kobe Line

lec

tric

Rai

y

Kobe Rapid Transit
Railway

n
anse

hink

yo S

San

OkamotoMikagelwa

AshiyaHanshin Koshien
Stadium

Shin-Kobe
Kobesannomiya

KoyoenShukugawa

Ashiyagawa

Imazu

Nishidai

Imazu
Koshien
Mukogawa

Daimotsu

Mukogawadanchi-Mae

Hanshin
Mukogawa
Line

106%

107%

106%

2014

2015

2016

2017

2018

2019

93%

83%

2021

2022

2023

2024

(Estimate)(FY)

Survey of Most Desirable Towns to Live In ( ansai region)

Kansai

Osaka Pref.

Ranking

Station1

Osaka-Umeda/Osaka(Kita-ku, Osaka)

2

Nishinomiya-kitaguchi(Nishinomiya, Hyogo Pref.)12 Sannomiya(Chuo-ku, Kobe)

3

Shukugawa(Nishinomiya, Hyogo Pref.)13 Tennoji(Tennoji-ku, Osaka)

4

Okamoto(Higashinada-ku, Kobe)

14 Ashiyagawa(Ashiya, Hyogo Pref.)5

Takarazuka(Takarazuka, Hyogo Pref.)15 Yodoyabashi(Chuo-ku, Osaka)

6

Senri-Chuo(Toyonaka, Osaka Pref.)16 Kitahama(Chuo-ku, Osaka)

7

Mikage (Hankyu)(Higashinada-ku, Kobe)

17 Toyonaka(Toyonaka, Osaka Pref.)8

Takatsuki/
Takatsuki-shi(Takatsuki, Osaka Pref.)18 Kyoto(Shimogyo-ku, Kyoto)

9AshiyaKyoto Pref.

Hyogo Pref.

100%

Kintetsu
Nara Line

2020

99%

88%

79%

102%

Fukushima

Metro

The largest airport inwestern Japan, andthe Kansai areaʼs
gateway to the world

106%

105%

106%
99%

83%

Hankyu and Hanshinline-side area

104%

Osaka-Umeda

Os a k a

Kansai International
Airport

105%

111%

The populations in the line-side areas where we have been committed to community building since our founding have steadily grown despite thelow birthrates and aging society in Japan as a whole. Furthermore, of the top twenty Most Desirable Towns to Live In (Kansai region), thirteen of
our line-side towns were selected, and have been highly praised.

98%(Location)

10 Karasuma Oike
91

19

Osaka-Umeda

Hanshin Electric Railway

Our community building has powered our line-side areas appeal

96%

Osaka Bay

102%

Population trends (1991 = 100)

Tenjimbashisuji
6-chome

Osaka-Nambaco e Airport

102%

111%

109%

107%

106%

108%

Awaji

Hanshin Namba Line

Hanshin
Main Line103%

Population

Shin-Osaka
Juso

100%

2013

Esaka

Osaka
Metro

ri
ct
Ele
o Li n e
y
n
Sa
in
Ma

Motomachi

Tsukaguchi
Nishinomiya-kitaguchi

Amagasaki

Kobe-Sannomiya
ShinkaichiHankyuTakarazuka
Line

Osaka
Metro

eE

HankyuItami Line

Toyonaka
Itami

100%

102%

70%

T
Sh ok
in aidka onsen

Takarazuka Grand Theater

Hankyu Corporation

80%

HankyuSenri
LineSenri-Chuo
Ishibashi
handai-mae
Kita-Osaka Kyuko

Hyogo
Prefecture

100%
90%

Kita-senri

Osaka
International
AirportItami Airport

Number of passengers in FY2013 = 100%

120%

Minoh

Kawanishi-noseguchi

Takarazuka

Hankyu Corporation s railway lines link Osaka-Umeda with Kobe, Takarazuka, and Kyoto. Hanshin Electric Railway is an operator with railway linesthat directly link Kobe with Osaka s major northern and southern terminals, which are Osaka-Umeda and Osaka-Namba, respectively. These
operations form a network that acts as a type of major society-supporting infrastructure in the Kansai area. While the number of passengers wasparticularly hard-hit by the pandemic, there are signs of recovery.

Changes in number of passengers

tric(Hanshin Main Line, Hanshin Namba Line, Hanshin Mukogawa Line)

Kobe Rapid Transit Railway Line

Myokenguchi

Nissei-chuo

A strong transportation network
HankyuKyoto Lineec
Nose El
Railway(Kyoto Line, Senri Line, Arashiyama Line)

48.9 km

N

Kyoto

Note: Station names in blue are those found in the top twenty Most Desirable Towns to Live In (Kansai region), an investigation conducted by MAJOR 7 (Sumitomo Realty &Development and six other companies) on October 6, 2022.

HanshinElectric Railway

Financial Section andCorporate Data

Katsurain the form of safe, comfortable urban lifestyles and experiences that stimulate dreams and excitement.

143.6 kmCreating Real Value:
The Foundations

Kyoto-kawaramachi

Centered around our eﬀorts in Osaka-Umeda, we are going further with our development of communities, providing myriad value

HankyuCorporation

Creating Real Value:
The Processes

Arashiyama

Making our line-side communities the absolute best among
P31 34the ansai networks

Kob

Creating Real Value:
Our Story

ProﬁleProﬁle

95

19

00

20

05

20

10

20

15

20

20

20

Ranking

Station11 Hommachi
Kobe-Sannomiya/(Location)(Chuo-ku, Osaka)(Ashiya, Hyogo Pref.)19 Tanimachi 6-chome(Chuo-ku, Osaka)(Nakagyo-ku, Kyoto)

20 Fukushima(Fukushima-ku, Osaka)*Of the top twenty, thirteen are our line-side areas.

Source: Basic Resident Registration population ﬁgures taken from Chiiki Keizai Soran (Local
Economy Directory), published by Toyo Keizai (as of January 1, 2023)

Source: Investigation conducted by MAJOR 7 (Sumitomo Realty & Development and six
other companies) (October 6, 2022)

Two big draws supported by a wide array of fans
In our entertainment business, the Hanshin Tigers and Takarazuka Revue have gained a following among a diverse range of fans, carrying the
dreams and excitement of many people over a number of years.

Total attendance at Hanshin Tigers home games (by season)

Takarazuka Revue total attendance of performances(Thousands of people)
3,500(Thousands of people)
3,500

3,000

2,899

3,091

3,000

2,619

2,500

2,000

1,500

1,500

518

500

2,991

Takarazuka Grand Theater/Tokyo Takarazuka Theater

2,500

2,000

1,000

3,128

Live viewing*¹/Live streaming*²
Other theaters

2,716

2,781

2022

2023

1,565

1,000

749

500
0

0
2018

2019

2020

2021

2022

(CY)

*1 Live viewing of shows at movie theaters nationwide for paying audiences*2 Live streaming of shows via the internet for viewing at home on a TV, smartphone,or other device for paying viewers (started in ﬁscal 2021)

2019

2020

2021

(FY)

Number of shows:
Takarazuka Grand Theater: 368 (-22 from previous year, 78 cancellations)Tokyo Takarazuka Theater: 390 (+3 from previous year, 64 cancellations)ansai International Airport

9

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

10

Creating Real Value:
Our Story

ProﬁleProﬁleCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Service Area

Creating richer lifestyles beyond our railway lines

Development leasing

We are expanding the type of thriving community development and business models that we have created along our lines

we have focused on in the ASEAN region sooverseas̶particularly in the ASEAN region̶and to the Tokyo metropolitan area.

far, we are working on our long-term holding

In addition to the residential sales businessbusiness (real estate leasing business) andReal estate business development overseas

Special Feature 2 (see pages 35 36)

Overseas, with a particular focus on the ASEAN region because of the sustainable growth forecast there, we are utilizing the expertise we havegained at our line-side areas, to expand the scale of our residential sales, long-term leasing, and ﬁx-and-ﬂip businesses.

business(short-term-return

business) to quickly expand and grow thescale of our earnings and proﬁts in ouroverseas real estate business.

Plaza Indonesia Complex

Park at 33rd in Arizona, U.S.A.

Central Park Mall in Indonesia (acquired FY2023)

Residential sales
Logistics facilities

We acquired Central Park Mall, a landmark large-scale commercial facility

VietnamResidential sales

ﬁx-and-ﬂip

in the western Jakarta area. The mall is aimed at middle and higher

U.S.A.

Thailandbrackets of society, a demographic that is predicted to grow signiﬁcantly

Rental residencesin the medium and long term alongside Indonesia s economic growth.
This means we can expect the number of user to continue rising.

The Philippines

Total ﬂoor space

Approx. 188,000 m² (including equity belonging to business partners)Size

10 ﬂoors above ground, 2 below ground, and other areas

PurposeCommercial facility (approx. 300 tenants)

Residential sales
Logistics facilities

Developing the real estate business in the Tokyo metropolitan area

Singapore

In addition to the steady promotion of developments currently underway in the Tokyo metropolitan area, we will look at how toincorporate hotel and entertainment functions in community building. We will accelerate eﬀorts in the short-term-return business,while also expanding redevelopment and replacement projects.

Malaysia

As part of the H-CUBE low-

We promote the developmentaforrise commercial facility on

Residential sales

busy

road

in

of rental condominiums

theOmotesando/Jingumae

Indonesiaarea, we developed or

the Tokyo metropolitan

sold oﬀ to Hankyu Hanshinarea̶through our short-

REIT Asset Management,

National GDP forecasts (where 2017 = 100)

Residential sales

term-return business.
Leasing condominium brand Geo ent

In 2015, we began selling condominiums in Vietnam s Ho Chi

200
190

The Philippines

Thailand

Vietnam

Malaysia

Singapore

U.S.A.

Indonesia

Minh City, and now we have 52 projects (covering more than

Japan

180

50,000 units) in ﬁve countries: Thailand, Vietnam, the170

Philippines, Indonesia, and Malaysia.

160

Yaesu 2 Naka Redevelopment (scheduled to be completed in FY2029)
As a participant in this project, at the end of March 2023 we received approval for achange to the legal designation, and we began demolition work.

(As of September 1, 2023)

150

Overseas markets

Projects

Total units

Thailand36

Approx. 29,870

Vietnam6

Approx. 13,990

110

The Philippines

5

Approx. 4,220

100

Indonesia

4

Approx. 3,980

Malaysia

1

Approx. 850

Total

52

Approx. 52,910

140
130
120

90

20

17

20

18

20

19

20

20

20

21

20

22

20

23

24

20

Source: IMF World Economic Outlook, April 2023

11

Inc.

gain

buildings̶particularly inthree of which have been

H-CUBE Minamiaoyama(Minato-ku, Tokyo)

todormitories, and otheracquired four buildings,

Hotels
Logistics facilities

Residential sales
Commercial facilities
Oﬃces

investors

revenue, and of student

Hankyu Hanshin Holdings Integrated Report 2023

20

25

20

26

20

27

20

28

Total site area

Approx. 19,600 m² (including parts belonging to business partners)

Total ﬂoor space

Approx. 388,700 m² (including parts belonging to business partners)Size

43 ﬂoors above ground and 3 below groundPurposeOﬃces, stores, theater, serviced apartments, international school,
bus terminal, parking, etc.

Artist s impression of the exterior

Hankyu Hanshin Holdings Integrated Report 2023

12

Creating Real Value:
Our Story

ProﬁleProﬁleFinancial Highlights

Non-Financial Highlights

ey Financial Indicators (Graphs)

Environmental Factors

Operating revenue

Operating profit and operating profit margin(¥ billion)
1,000(¥ billion)
120

800

968.3
791.4

762.7

600

746.2
568.9

400

CO₂ emissions volumes (Scope 1 and 2 equivalent)
（%）
21

114.9
95.2

14.5

80

89.4

12.5

40

14

7

5.3
2.1

0
2019

2020

2021

2022

2023

2019

（FY）

Operating profit

2020

2022

2023

616,365

Operating profit margin (right axis)

300,000
434,932

370,131393,821361,832

Profit attributable to owners of parent and ROE(¥ billion)
80

Urban transportation

150

171.4

60

153.7

154.1

40

100

2020

2021

2022

(FY)

2023

Entertainment

Real estate

TravelInternational transportation

60.3

50

-4.1

-40

0
2019

2020

2021

2022

2023

（FY）

3

2.5

-20

2019

2020

2021

2022

Social Factors-3

Capital investment in railway operation business

2023

15

3

2.47

2

2.49

2.72

2.62

3.6

4.5

2.87

3.2

1
1.4

0

-0.3
2019

Total assets

2020

2021

2022

2023

（%）
6

(¥ billion)
1,200

4

900

2

600

0

300

-2

0

（FY）

ROA (right axis)

877.1

903.5

1,096.0
1,063.0
17.6

1,106.4

5

5.9

1.0

1.0

2019

2020

10
7.2

1.3

1.2
2021

2022

(Times)
20
15

10.9
5.1

1.2
2023

5
0
（FY）

Interest-bearing debt

Note: ROA = ordinary profit/total assets (average of period-start and period-end totals)

D/E ratio (right axis)

Interest-bearing debt/EBITDA ratio (right axis)

4.7

4.3

6.4

0

14.1

2.3

14.4 0.7

4.5

4.8

Hankyu Hanshin

Hankyu Hanshin

2019

2020

Safety-related capital investment

12.6 0.6

4.1

Returns to shareholders(¥ billion)
150(¥ billion)
25

(¥)
100

20

80

100

123.1

132.1
81.8

50
0

9.9
-5.4

-50
-100

-116.2-128.5

-150
2019

2020

-32.5

-96.4

Net cash provided by operating activities

9.8

10

-14.6

-102.2-134.7
2021

15

18.9

4.8

Hankyu Hanshin

Hankyu Hanshin

2022

11.5

1.6

5

-113.2

40
9.9

2.0
50

12.2

50
12.2

50
12.1

50

12.1

2022

2023

（FY）

Free cash flow

Hankyu Hanshin Holdings Integrated Report 2023

40

2019
Acquired treasury stock

2020

2021

2022

(FY)

Hankyu Hanshin

2023

2023

Total annual dividend

Annual dividend per share (right axis)

（FY）

4.5

5.6

30
20

0
2020

2021

2022

2023

(FY)

Percentage of women in management positions
Percentage of women among new hires (right axis)*Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel
International, Hankyu Hanshin Express, and Hankyu Hanshin Hotels

Hankyu Hanshin Holdings and its six major companies are actively continuing tohire female employees and also pursuing fair working environments where
employees are able to fulfill their roles to the best of their abilities, regardless ofgender, by supporting them by encouraging diverse paths and helping them tobalance their work and private lives. In fiscal 2023, the percentage of women in
management positions was 5.6% and females made up 34.6% of new hires.

Rate of attendance of outside directors at meetings of the Boardof Directors and Audit & Supervisory Committee

（%）
60

（%）
100
45.5

5.1

4.7

40

10

2019

(FY)

Other capital investment

As a railway operator, the Group provides a form of public infrastructure. We
therefore make giving priority to the safety of our customers a fundamental policyof management, and conduct ongoing safety-related capital investments in ourrailway operation business accordingly. Safety-related capital investments in fiscal
2023 totaled ¥11.5 billion at Hankyu Corporation and ¥3.1 billion at Hanshin
Electric Railway. These investments were primarily used for the construction of
new trains and renovation of existing ones, as well as for installing platform screen
doors, further improving stations, and seismically reinforcing elevated tracks.

40

4.5

34.6

0

Note: The total length of lines operated is 143.6 km for Hankyu Corporation and 48.9 km
for Hanshin Electric Railway.

45.5

（%）
50

44.5
36.8

41.7

45.5

92.9

80

33.3

100.0

100.0

100.0

98.0

97.8

100.0

80.0
60

20

20
0

Note: The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and other standards have been applied from the beginning of fiscal 2022.
The key management indicators for fiscal 2022 onward presented here have been calculated to reflect these changes.

13

60

0
Net cash used in investing activities

2023

2

3.1

Percentage of outside directors

4,3

47.8

6
4

1.7
12.2

3.5
2021

45.3

8

6.9

Governance Factors
Cash flows
126.0

2022

(Target: Hankyu Hanshin Holdings and its six major companies*)

（%）
10

10

Interest-bearing debt, D/E ratio, and interest-bearing debt/EBITDA ratio(¥ trillion)

2021

Percentage of women in management positions and women among new hires(¥ billion)
20

（FY）

ROE (right axis)

Note: ROE = profit attributable to owners of parent/equity (average of period-start andperiod-end totals)

Total assets and ROA

2020

CO₂ emissions for fiscal 2023 totaled 361,832 t-CO₂, 8.1% reduction year on year
and 41.3% reduction from fiscal 2014 levels.

0

-6

-36.7

Profit attributable to owners of parent

2014

In fiscal 2023, energy consumption on a crude oil conversion basis totaled
257,257 kl (18.7% reduction from fiscal 2014 levels). The increase in energy
consumption from the previous year was due to the recovery from the pandemic.

6

5.3

21.4

0

257,257

9

47.0

6.1

7.6

20

100.7

54.9

252,495

Note: Due to the merger in fiscal 2023 of the real estate business and the hotel business,for this data the hotel business is recorded under the real estate business, and thishas also been applied to past years figures.

（%）
12

65.5

253,116

0
2014

Other

EBITDA

283,045

100,000

Information and communication technology(¥ billion)
200

316,491

200,000

0（FY）

Financial Section andCorporate Data（kl）
400,000

200,000

0

0.4

2021

600,000

Creating Real Value:
The Foundations

Energy consumption (crude oil conversion basis)（t-CO2）800,000

400,000

9.2

39.2

200
0

Creating Real Value:
The Processes

Outside directors, the Board of Directors
Outside directors, the Audit & Supervisory Committee

0

0
2019

2020

2021

2022

2023

(As of theconclusion of
the General
Meeting of
Shareholders
for each year)

2019

2020

2021

2022

2023

(FY)

Note: With the approval obtained at the Ordinary General Meeting of Shareholders heldin June 2020, Hankyu Hanshin Holdings became a company with an audit andsupervisory committee.

Hankyu Hanshin Holdings Integrated Report 2023

14

Profile

Creating Real Value: Our Story

01
15

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Osaka-Umeda area

Creating Real Value:
Our Story

Hankyu Hanshin Holdings Integrated Report 2023

CONTENTS
17

Value Creation Process

19

Message from the President

25Long-Term Vision: Toward 2040

27

Outline of Our Medium-Term Management Plan (Fiscal 2023-2026)

31

Special Feature 1

Umeda and Line-Side Communities Are Driving Growth in Accordance with the Long-Term Vision

35

Special Feature 2

Another Driver of Growth in Line with the Long-Term Vision (Overseas Real Estate)

37

Special Feature 3

The Pursuit of Safety and Peace of Mind in the Railway Business

40

Special Feature 4

Working toward Carbon Neutrality

Hankyu Hanshin Holdings Integrated Report 2023

16

Creating Real Value:
Our Story

ProfileCreating Real Value: Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Value Creation Process (Overall Long-Term Vision)
By working toward achieving our Long-Term Vision, we will bring the Group together and push forward with reforms, while
also further enhancing the appeal of our operational area and the products and services̶the content̶that we oﬀer. Moreover,
we will expand our business ﬁelds, pursue ﬁnancial stability, and ensure that a style of management that is more conscious of
capital costs takes hold. By doing so, we will aim to be a corporate group that can grow alongside the Kansai region.

AccumulatedLong-Term Vision: Toward 2040 p25

Services we provide (value)(core strategy)

Make our line-side communities theabsolute best among the ansai
networks
Strategy

Application(incl. digitaltechnologies)

Intellectual capital

Expertise and brandpower accumulated
over more than 100
years of history

Human capital

Diverse workforce
with the courage to
try new things
See page 47

Financial capital

Stable ﬁnancial
foundation

Expand the coverage of ourline-side business model

Strategy

Make our content as compelling as possible

Strategy

Increase market share by providing highvalue-added services

Promotion of the Hankyu Hanshin D

p27

Project

Contribute to SDGs and 2050 carbon neutrality goal
Strengthening cooperation with external partners
Financial policy

Bringing the Group together to promote reforms

Advantageous
operational area
environment

Create a future grounded in Safety
and Comfort, and a future coloredby Dreams and Excitement.

Advancedbusiness support

Stable returns(via the Long-Term Vision)

Sustainability Declaration p45

Natural capital

Experiences that
stimulate dreams
and excitement

Establishing a capital-cost-aware management stylePursuit of nancial stability

General Principles

Safe,
comfortableurban lifestyles

Medium-Term Management Plan
(FY2023 2026)

Strategy

Extensive assets thatcan create stablerevenue

Services based ontrust and brandstrength

Enhancing line-side areas and expanding elds

Strategies for achieving the future vision

Manufactured
capitalSocial andrelationship capital

SloganImproved customer satisfaction

Tangible andintangible
management
resources

commitourselves

Customers
Through safe, comfortable urban lifestyles
and compelling content, we will provide
experiences that stimulate dreams andexcitement for improved customer satisfaction.

Communities
Working with the region, we will make ourline-side communities the absolute best
among the Kansai networks.

Employees
We will remain aware of diversity andinclusion, and raise employee satisfaction.

Business

external partners

By continuously providing high-value-added
services, we will construct relationships oftrust and grow together.

Creditors
We will maintain our ﬁnancial soundness(to maintain our ﬁnancial ratings).

Shareholders
We will aim to maintain and improve ROE,
to continue to provide a stable, appropriate
level of shareholder return.

Contributing to the
SDGs carbon
neutrality by 2050

cultivate communities and enrich lives. Leveraging
weContributing to and giving backto stakeholders

Next generation

Six priority issues (materiality matrix)

experience,Contributing toa sustainable
society

We will create a vigorous Kansai where
people want to live, visit, and work, andpass the baton on to the next generation.

For over a hundred years, we have sought tothisSustainable improvements to corporate value

Dynamism of external partners

toaddressing social and environmental challenges
and working toward a sustainable future, one thatoﬀers a fulﬁlling, joyful life to all and inspires thenext generation to dream with hope.

Safe, reliableinfrastructure

Thriving
communities

Life designs
for tomorrow

Empowering
individuals

Environmental
protection

Robustgovernance

MissionGroup Management Philosophy p2

17

Hankyu Hanshin Holdings Integrated Report 2023

What we try to achieve

By delivering Safety and Comfort andDreams and Excitement, we create satisfaction
among our customers and contribute to society.

Hankyu Hanshin Holdings Integrated Report 2023

18

Profile

Creating Real Value: Our Story

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Message from the President
A stroll through the city often serves to realignmy perspective.

Driving the Innovation
That Shapes the Future
In conversation with our editorial team

Q: What concerns you the most at present?

However, I feel that Japanʼs population decline reveals a major
shift in the economic environment.
The number of births in Japan in 2022 totaled less than
800,000, which represents a decrease of more than 30% from 20
years ago. By way of comparison, in 2002 births totaled about

Even before I was appointed president in March, I would try to

1.15 million. Forecasts envision that the population of 20-year-

find time whenever I could to stroll around my neighborhood orolds in Japan will decrease by more than 30% in a mere 20 years.

along our railway lines, using a smartphone app as motivation.

Our Group has developed its businesses̶which include

When I actually take the time to look around and see things withrailways, real estate, and entertainment̶on the premise thatmy own eyes, it becomes evident that people have mostly

many people will feel the need to travel. However, if theresumed their travel habits to a large extent, especially since thepopulation continues to decline to this extent, we will have to

beginning of 2023. Especially after reading reports on the number

adopt appropriate measures in response.

of people using the railways, I would say the situation is clearly

I had assumed that the number of births in Japan in 2022

revealing this trend. However, the elderly may still be a little

would decrease, but the release of the official statistics made me

cautious about their travel habits.

realize that our Group will face difficult challenges in the future if

Q: Walking is your favorite pastime, isn t it?

we continue with business as usual.

were to injure myself, it would cause a lot of trouble for everyone,

Q: Under these circumstances, how do you think theGroup should respond?

so I decided to put aside that particular activity after becoming

In May 2022, our Company formulated Long-Term Vision:president. [Laughs]

Toward 2040 (see page 25), which sets forth our four strategies

Actually, Iʼd rather go to the hot springs or even go skiing, but if I

During the COVID-19 pandemic, many people realized thatand management goals for fiscal 2031. Above all, however, I

digital technology enabled them to accomplish a lot of things

believe we must work to address the following two issues: first,

without having to travel. On the other hand, most of us haveto achieve stable cash generation and to use this cash as

since recognized anew that interacting with others is essential.

resource for future growth and new reforms and solutions andAs I walk around various places, I feel that people are becoming

second, to gain recognition from the capital markets andmore aware of this. In fact, when I stroll through town, I see morestabilize our management structure.

and more people happily chatting away, and seeing that cheers
me up considerably.

Q: However, some of the eﬀects of the COVID-19
pandemic are still in evidence, aren t they?
Yes, it seems so. Partly because working from home has become
established to a certain extent, the number of passengers using
commuter passes has not fully recovered, and the number ofpeople going to restaurants and taking trains late at night has not
yet rebounded. This social tendency has not returned to its pre-In addition to the commitments, I have made so far, I feel that
we must set even higher goals for management and take thesteps necessary to achieve them.

■ Our Strategy for Managing the
FutureOur mission is to derive even greater value fromour operational areas.

pandemic levels. Honestly, I donʼt think this situation will everfully recover.

Yasuo Shimada
President andRepresentative Director

COVID-19 pandemic. Itʼs unlikely that many will return to the

Q: Please tell us more speciﬁcally about the ﬁrst issue
you just mentioned, achieving stable cash
generation.”

lifestyle of drinking late into the night and then going to work the

In order to achieve stable cash generation, we must first focus on

next day feeling the worse for wear.

our operational areas̶in other words, the areas adjoining ourLifestyles have definitely changed in the aftermath of therailway lines̶where we happen to enjoy a relative competitive

The accelerated population decline following the
COVID-19 pandemic remains one of our mostpressing crises.
Q: Accommodating the change in lifestyles is an
important challenge to the Group, isn t it?

Hankyu Hanshin Holdings Integrated Report 2023

In this market, we will review our existing services toaccommodate changing demand. Examples of these changes
include timetable revisions and the introduction of paid seatreservation services. We believe these initiatives will lead to
improved cash generation in the short term.

we should shift our products and services. Consequently, we will

Q: Several projects in the Group s operational areas arealso making progress, are they not?

continue to monitor the needs of our customers and respond

When it becomes clear that weʼre not making full use of ourwith a variety of innovative ideas.

assets, or when we determine that new investments will increase

Changing lifestyles present our Group with major clues for how

19advantage thanks to the efforts of our predecessors.

Hankyu Hanshin Holdings Integrated Report 2023

20

Profile

Creating Real Value: Our Story

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data2022̶Central Park Mall, a large-scale commercial facility inand it will remain unchanged. Even if we continue with the sameIndonesia.

approach, it is difficult to imagine that these businesses will
shrink rapidly in the future. They may be fine for the next 10 or 15

Our Group mission is to increase the

Q: What are your future goals for the overseas realestate business?

years, but we are beginning to see a major demographic shift

value of our operational areas.

Our goal is to achieve business profit* of 10 billion yen as soon

growth̶even if only in a stair-step manner̶it will be possible toas possible.

generate the cash needed to increase our corporate value in the

coming our way in the next 20 years or so. By achieving dynamic

In addition, for example, we would like to incorporate our

future. In order to garner a higher evaluation from institutionaloverseas operational expertise into our commercial facilities

investors outside Japan, I believe we must keep in mind a global

markets and achieve sustainable growthalong railway lines and demonstrate synergies unique to ourlevel of capital efficiency, including acknowledgement of theGroup.

sustainable development goals, or SDGs.

as a corporate group.

*Business profit = Operating profit + Non-operating profit/loss: Equitymethod gains/losses related to overseas business investments (in Real
Estate segment) See page 27.

an ROE of 8%, even if it might take some time to get there. In

Concurrently, we will cultivate growth

For these reasons, I have come to accept that we must aim fororder to achieve this goal, we believe we must make significant

Q: What about other business segments?

businesses can be sufficiently maintained. To this end, it is

In the international transportation business, in 2018 we acquired

essential that we capture the vitality of growing markets. Ouran African company that is expected to grow in the future throughentire Group will have to conduct various studies with the goal of

M&A, and its performance has been solid. Expanding our businessadopting the necessary reforms.

scale as well as our global network is of paramount importance,
so we will continue to work towards this objective.

Q: What are the challenges to achieving an ROE of 8%?

In addition, because content and intellectual property such as

I think the first step is for the entire Group to adopt a sense ofentertainment and travel have no national borders, they can becrisis that we need to fundamentally change our way of thinking.

significant. Examples of the first case include the Shibata 1 Project

Q: Among the Group s various operational areas, theOsaka-Umeda district is particularly important, isn t
it?

the key to either capturing the vitality of a growing market or

In our Group, each and every employee places great

and the redevelopment of the Senri Chuo area, while examples ofIn the Kansai region, in addition to expositions and integrated

entering a growing market. And as digitization progresses, we

importance on the customers they are dealing with. I believe thatthe latter include the development of the Umekita Phase II

resorts, rapid progress is being made in the development of

anticipate that the information services business will continue tobecause of this, our employees tend to focus well on theDistrict and new railway line plan known as the Shin-Osaka

infrastructure such as air and land gateways and new railway

grow domestically as well.

individuals they are dealing with. I think it is preferable to adopt

Connection Line and Naniwasuji Connection Line.

lines linking these areas. With administrative support systems inthe value of our operational areas, we will make the upfront
investments for the future, even if the amount to be invested is

Our Group owns many commercial facilities and offices alongplace, such as the Super City designation under the National

our operational areas, and it is essential that we enhance theStrategic Special Zone system, the Kansai region will likely gain

value of these properties over time in a consistent manner.

international

Although this may entail a temporary negative financial impact, it

investment, to become a region that will make great strides.

recognition,

attracting

people,goods,a more challenging attitude in areas other than those related to

We must target an 8

return on equity.

andsafety and security.

Reshaping our Group through the digitaltransformationis the mission of our Group, which has grown together with the

The Osaka-Umeda district, which is at the center of this region,

local community, to engage in the cycle of reinvesting in theseis our Groupʼs largest business base. According to the “Umeda

Q: Please tell us your views about the second issue you
mentioned gaining recognition from the capital
markets.”

properties and restoring their value.

Vision” we formulated in 2022, we aim to increase the value of

In light of the large number of foreign investors, becoming aware

Umeda over the medium and long terms as a base for internationalof capital efficiency as well as growth strategies is extremely

exchange while create value unique to Osaka-Umeda. I would

important in order to earn a stable evaluation from the capital

Q: Promoting the digital transformation is also one ofyour initiatives for change. How are you proceedingwith this endeavor?

like to establish functions as a new industry development center

markets.

The digital realm is often described as being in a “zero-sum”

Capturing the vitality of a growing market
Q: What initiatives are being pursued outside of existing
markets?
As Japanʼs population continues to decline, it is essential that weand a base of international tourism, increase the influx of foreign

Under our Long-Term Vision updated in 2022, we set an ROE

relationship with concrete reality, but I myself donʼt think thatʼsvisitors and the number of foreign permanent residents, and thus

target in the 7% range for the first time as an indicator of capitalthe case. While itʼs true that the development of digital technology

fill our operational areas with a new vitality.

efficiency. However, in light of recent market trends, I believe we

has increased the range of available options for how we choose

need to be even more aggressive, so it may be necessary to raise

to live and work, this does not mean that the demand for

our ROE benchmark to 8% or more while we monitor the progresstransportation will ever disappear. On the other hand, itʼs alsoof several of our projects.

true that the technologies that enable us to have normal

achieve this: one is to incorporate the vitality of growing markets

Q: What do you mean by taking another direction andintroducing ourselves into growing markets”?

into our operational areas, and the second is to introduce

One aspect is the overseas real estate business.

develop new markets. There are two points of view on how toourselves into growing markets.

In the growing ASEAN market, we first started with the housingbusiness, which entails relatively low risk. Since then, we have21

reforms to the Group while the cash generation of existing

Q: What measures are you considering to incorporate
the vitality of growing markets into the Group s
operational areas?

posted a considerable track record with cumulative production

One way is to ensure that we capture inbound demand. To thisway, local communities have become aware of our Groupʼsend, we will not only strengthen our existing products and services,

exceeding 50,000 units, including our joint venture interests.

conversations without having to travel to distant locations have

Cultivating the determination to e ect change

become very convenient and widespread. While we continue todevelop new digital services, we also need to think more about
how to employ these digital technologies to stimulate demandfor our transportation services in the real world.

depth of commitment, and we have begun to access a variety of

Q: An ROE of 8% is a lofty goal for the Group, and weare sometimes asked whether this is even necessary
for a company known for stable management ofrailways.

but also consider creating mechanisms that will make people wantdata sources. Furthermore, along with the expansion of these

Until now, our Group has used the cash that is steadily earned

and marketing efficiency. In the future, as our Groupʼs common

to visit our operational areas repeatedly. In addition, we will create“information networks,” we have continued to grow steadily,from railways, real estate, and other businesses to increase theidentifier, “HH cross ID,” becomes more widely adopted, customer

methods that allow us to approach customers directly.

which included the opportunity to acquire a major investment invalue of our operational areas. We intend to hold to this principle,

data will be gathered in a way that cuts across each business ofHankyu Hanshin Holdings Integrated Report 2023

As a result of our having done business outside Japan in thisWe are currently promoting the Hankyu Hanshin Digital
Transformation Project across our Group, and in the short term,
we will utilize digital technologies to improve our productivity

Hankyu Hanshin Holdings Integrated Report 2023

22

Profile

Creating Real Value: Our Story

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

our Group. So, over the medium and long terms, we intend to

Management Plan. I have also served as an executive at one ofunderstand each other and move forward in the right direction.

business model grounded in the movement of people, and thisoffer innovative solutions that exploit the advantages of both the

our core companies, so I believe I have a certain degree of

The same approach applies to customers. I believe it iswill not change in the future. However, in order to achieve growth

digital and concrete realms.

understanding of the Groupʼs current situation and the path weessential to listen to customer feedback, take it seriously, andover the medium and long terms in the midst of a changing

should follow. From that perspective, I am currently approachinguse it to make improvements.

operating environment marked by population decline and other

Although the hurdles to achieving these goals are extremely
high, we intend to work together as an integrated group to
develop new opportunities for profit. I am confident that we will

Q: When I have worked with you in the past, I havealways felt that you have placed great importanceon agility and dialogue. I think investors would
appreciate it if you could engage in such dialogue
with them as well.

further refining our existing business model. I will work together

I believe itʼs important to communicate with investors in order tocontinue to make steady efforts and aim to grow into a corporate

Matters related to business operations are essentially delegatedgain their understanding and obtain a favorable evaluation in thegroup that earns greater trust than ever before. We continue toto the presidents of the operating companies. Instead, I maintainmarket. Since I was appointed, I have made the effort to be

be grateful for all the understanding and support we havesufficient communication with the presidents of our operating

available at every such opportunity. Of course, we always

received.

companies and have obtained their commitment to achieving

appreciate hearing the candid views of our investors.

I am committed to implementing the necessary changes
rapidly in order to realize the goals set forth in our Long-Termbe transformed by these efforts.

Vision.

■ Targeting Sustainable Growth
Emerging as a corporate group that grows intandem with our regions
Q: ESG initiatives are also important in order to attract
a high evaluation from the capital markets. We
appreciate that our Group has received high praiseand has even been incorporated into many ESG
indices (see page 94). Please tell us your thoughts
on sustainable management.
Although we adopted our Sustainability Declaration in 2020, ourtrends, we intend to steadily grow our existing business while

things in a natural way.

Q: What do you think about the role of president of aholding company?

results.
The role of the president of a holding company is generally towith our Group employees to implement reforms so that we can
improve our business performance and offer new businessmodels.
Although the business environment remains difficult, we will

Thank you very much for your time.

make final decisions on the allocation of management resources,

Q: Lastly, what is your message to investors?

namely people and money. By collecting widely varied data fromFor more than 100 years, our Company has operated on awithin and outside the Company, I will adopt major policies witha sense of urgency and make quick decisions when necessary sothat no opportunities slip past our business divisions.

Group takes pride in having contributed to the emergence of asustainable

societyeven

beforetheterm“sustainable

management” became popular.
This Integrated Report includes a roundtable discussion with

Sales reveal the results of an evaluation
performed by a customer.

outside directors (see page 85), so I will leave the details to theemissions of railways are significantly lower than those of other

Q: Please tell us your views concerning the foundationof corporate management.”modes of transportation, so railways can therefore be considered

Please bear with me for the time being, as I donʼt yet have a trackan environment-friendly mode of transportation. I think that therecord that I can boast about. However, I always tell myurban renewal weʼve been pursuing for over 100 years is the very

employees the following: “Sales reveal the results of an evaluation

essence of society, as represented by the “S” in ESG.

performed by a customer; our costs represent our ingenuity; andreader to explore. But I would like to point out that the CO₂

We provide products and services that enrich the lives ofpeople in our operational areas, and we help our various regions

our growing profits show that we are making appropriate efforts
for the services we provide.”develop in a sustainable manner. As a result, our Group is poised

If we make only minimal efforts to increase sales, our reputation

to grow sustainably. What our Group values above all else is towith our customers will not last very long. I was previously

uphold this cycle, and I believe that this is the very essence of

involved in the launch of a new venture and worked in thesustainable management. As a corporate group that grows

retailing business, and this is what I came to realize at that time.

together with the local community, we will continue to actively

We must continue to provide high-quality products andpromote initiatives that contribute to the emergence of aservices that we believe are the best, with added value thatsustainable society.

satisfies our customers. I believe this is the successful footing on
which our Company has continued to operate over the many

■ On Being Appointed Company
President

years since our founding.

Dialogue is essential.

Mr. Shimada in his own words
Motto
Whatever will be, will be.

I am above board, straightforward, and exactly who I

I tend to look at everything positively, even situations thatappear to be.

tend to be diﬃcult or painful. That s just the way I am.
How I spend my holiday time

Rapidly e ecting change after gathering needed
information

Q: In your role as president and leader of our Group,
please tell us what you value most.
What I value most is two-way communication, otherwise known

Q: Have you made any major changes since you wereappointed president in March?

23

as dialogue. I was once involved in business restructuring and in
the rebuilding of companies in dire business straits. At times, I

As the head of the Group Planning Division, I have been involved

had to convey some very harsh realities to managers andin the formulation of our Long-Term Vision and Medium-Term

employees. However, by talking face-to-face, we were able toHankyu Hanshin Holdings Integrated Report 2023

My strengths

On days when I have nothing else to do, I go to golf
practice first thing in the morning, which entails a roundtrip walk of more than an hour. My goal is to walk at least

Where I excel compared to others in similar roles
No matter how diﬃcult the situation, I always do my best
to maintain a positive attitude.
What I treasure most

10,000 steps a day. Walking to and from the practice

I treasure not only my family, but also all the connections I

range is still not enough, so I go for an extra walk after I get

make with everyone I meet.

home. I don t like remaining stuck indoors.

Hankyu Hanshin Holdings Integrated Report 2023

24

Creating Real Value:
Our Story

ProfileCreating Real Value: Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Long-Term Vision: Toward 2040

Long-Term Vision

We formulated our Long-Term Vision: Toward 2040 in May 2022. This new corporate vision looks to the future, to theperiod between 2035 and 2040 when we expect the large-scale projects we are working on to start contributing to
proﬁts. It outlines our Long-Term Vision for the future and sets strategies and ﬁnancial policies to reach those goals.
However, the time frame for that contribution to proﬁts is still some way oﬀ, so we have announced our managementtargets for ﬁscal 2031 as a waymark on the path to accomplishing sustainable growth toward 2040.

Financial and non- nancial

In ﬁscal 2031, a waymark on the path to future growth and rapid progress, we will aim to achieve proﬁt growth (particularly in existing
businesses) and business proﬁt of 130.0 billion yen, as well as taking on the challenge of getting something extra through eﬀorts such as
the Hankyu Hanshin DX Project. Our management targets (for ﬁnancial and non-ﬁnancial KPIs) for ﬁscal 2031 are as follows.

Financial

Summary of the Long-Term Vision

PI targets for FY2031

PI targets

To be able to continue oﬀering a stable supply of the products and services with a view to achieving a sustainable society and thedevelopment of the region, we will pursue ﬁnancial stability and, in order to meet stakeholder s expectations, we will establish aEnhancing line-side areas and expanding elds

Sloganmanagement style that is more aware of capital costs, and speciﬁcally aim to maintain and enhance capital eﬃciency.

Strategy

Make our content as compellingas possible

Experiences that
stimulate dreams
and excitement

Increase market share by providing
high value-added services

Advancedbusiness support

Promotion of the Hankyu Hanshin D

Project

Contribute to SDGs and 2050 carbon neutrality goal
Pursuing nancial stability

Contributing to a sustainable
societyStrategy

Expand the coverage of ourline-side business model

Safe, comfortableurban lifestyles

our proﬁtability structure, and working diligently to use digital technologies to expand ourrevenue base and raise productivity, we can record a certain standard of proﬁts.

Sustainable improvements
to corporate value

Make our line-side communities the absolute
best among the ansai networks

Strategy● By expanding revenue for each of our businesses, driving thorough cost reductions, strengthening

Services we provide (value)
Improved customer satisfaction

Strategies for achieving the future vision
Strategy

Establishing a capital-cost-aware management style

The Group s long-term ideal● We will also press ahead with thorough risk management for highly volatile businesses

Pursuing
ﬁnancial
stability

such as overseas real estate.

Maintenance of ﬁnancial soundness● As well as advancing initiatives aimed at business expansion̶including large-scale projects̶andmaking growth investments, we will control the interest-bearing debt balance while keeping thecurrent rating level in mind, and aim for an interest-bearing-debt/EBITDA ratio of between 5 and 6.

lifestyles and experiences that stimulate dreams and excitement. At the same time, by expanding the areas in which we dobusiness, we will raise customer satisfaction and enhance corporate value sustainably.

● We will meet the expectations of customers, regional communities, and other stakeholders, and contribute to bringing

about a more sustainable society.

Through these e orts, we aim to be a corporate group that grows hand in hand withansai

(core strategy) Make our line-side communities the absolute best among theansai networks

Urban Transportation, Real Estate, etc.

● Focus on making our line-side areas much more attractive by engaging in community building and actively leveraging digital innovations with theaim of coping with the shrinking and aging population.

● Extend the land transport vitality and global dynamism of our line-side areas by steadily carrying out new line projects such as the

Naniwasuji Connection Line and Shin-Osaka Connection Line Project, and use new projects such as the Shibata 1 Project to make
Osaka-Umeda as a whole a world-class urban environment in line with the Umeda Vision.

Strategy

Make our content as compelling as possible

Expand the coverage of our line-side business model● Also, by carefully selecting new growth investments from the perspective of yield, we will

carefully move forward with accumulating stocks, reviewing the business situation, andwithdrawing from low-yield assets, and so prevent a bloated balance sheet.

● We will provide and continue to oﬀer stable, appropriate shareholder returns, and maintaina suitable debt/equity (D/E) ratio.

● Through these measures, we will aim for the ROE standard detailed on the right.

Strategy

Increase market share by providing high value-added services

Information and Communication Technology and International Transportation

Rate of CO₂ emissions cuts: 46

in the medium tolong term

reduction from FY2014 level

Continued improvement in employee satisfaction
Percentage of women in management positions: Around 10
Percentage of women among new hires: Always more than 30

Annual operating proﬁt prior to the pandemic was more than 100.0 billion yen, but in ﬁscal 2031 we aim to achieve proﬁt growth,particularly in existing businesses, for a total business proﬁt of 130.0 billion yen, and are challenging ourselves to accomplish something
extra via the DX Project. Next, as the large-scale projects are completed and opened in turn, they will start to contribute to proﬁts, so they
are sure to help further grow our proﬁt between 2035 and 2040.

Business proﬁt (FY2031 target)

130.0 billion
plus something extra¥130.0 billion

Something extra in the way of growth via D Project, etc.

Aim for further pro t
growth 2035 2040

Further promotion of
the D Project, etc.
Underpinning of existing business with D(greater efficiency, labor savings, etc.)¥118.0 billion

130.0 billion,

particularly from existing
businesses¥100.0 billion

Hankyu Hanshin Holdings Integrated Report 2023

7% range

Pro t growth toward 2040

● Provide high-quality, competitive services to increase our business scale and market share.

25

ROE

Non- nancial PI targets● Use our technologies and know-how to expand the value scope of our businesses.

In addition to pursuing these four strategies, we will strongly promote our eﬀorts to implement the Hankyu Hanshin DX Project and to contribute to theachievement of the SDGs and the 2050 carbon neutrality goal.

Between 5 and 6*Business proﬁt/invested capital

Real Estate and other businesses

we have accumulated through strategies ① and ②.
● Outside Japan, we plan to expand our business, particularly in the ASEAN region where sustainable growth is forecast, through residential
subdivision as well as long-term property leasing and the ﬁx-and-ﬂip business.

Interest-bearing-debt/
EBITDA ratio

Note: Business proﬁt = Operating proﬁt + Non-operating proﬁt/loss: Equity-method gains/losses related to overseas business investments (in Real Estate segment) (See page 27 for details.)

Entertainment and Travel● Expand our line-side business model (e.g., building abundant communities) beyond line-side areas by utilizing the know-how and achievements that

*Aim to go further throughthe DX Project, etc.

as we aim to maintain and improve yield.

Establishing acapital-costaware
management
style● Make our content more compelling while expanding our customer base and actively leveraging digital technologies.

Strategy¥130.0 billion plus
something extra＊

Maintenance and improvements to capital eﬃciency (to create returns that exceed capital costs)

ero culpable incidents in our railway operation business

Strategies to achieve our ideal

Business proﬁt● In each business, we will remain conscious of capital costs and utilize ROIC* and other indicators,● We are going further with our development of communities, providing manifold value in the form of safe, comfortable urban

Strategy(FY2031 target)

Stable base proﬁt results

Long-Term Vision overview

FY2026

FY2031

Around 2035

Around 2040

Hankyu Hanshin Holdings Integrated Report 2023

26

Creating Real Value:
Our Story

ProfileCreating Real Value: Our Story

Outline of Our Medium-Term Management Plan (Fiscal 2023‒2026)

Medium-Term Management Plan

Our Group has formulated its Medium-Term Management Plan* as a concrete action plan for the implementation of
medium-term initiatives that aid the achievement of our Long-Term Vision. The plan covers the four-year period fromﬁscal 2023 to 2026.

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Cash Flows
We expect cash expenditures during the plan period to be approximately 790.0 billion yen, including about 360.0 billion yen in growthinvestments (an increase of 70.0 billion yen from the previous plan in the announcement released in May 2023, which reﬂected the results*In May 2023, we undertook a periodic review of some of the details of the plan.

of our periodic review of the plan).

Positioningof about 120.0 billion yen. We will accommodate this through additional debt and other measures (representing an increase in interest-

In addition, we forecast that EBITDA for the current plan period will be approximately 670.0 billion yen, resulting in a funding shortfall
bearing debt) while continuing to monitor our interest-bearing debt/EBITDA ratio.

In response to rapid changes in the economic environment, ourIn addition to promoting the implementation of strategies intended toGroup has devised various initiatives to return to our stable pre-achieve sustainable proﬁt growth in line with our Long-Term Vision, we

pandemic growth trajectory and quickly recover to a base proﬁt

are solidifying our footing for our next growth phase by expanding ourlevel of 100.0 billion yen.

investments in overseas real estate and the condominium businesses.

Pro t Targets■ Planned four-year cumulative totals for FY2023 to FY2026
Cash in

670.0

Business pro t: 118.0 billion yen
Additionalborrowing, etc.

Introduction to the concept of business pro t
In ﬁscal 2024, we introduced the concept of business proﬁt, which represents anequity method proﬁt or loss associated with investment in overseas businesses in
addition to operating proﬁt. This represents a new management indicator for theGroup. By adopting this metric, we can appropriately encompass the progress of our
In May 2023, we announced that the basis for our proﬁt target would be changed

Business pro t

Illustration of operating pro t and business pro tOperating
Urban
Real Estate Entertainment
Transportation
proﬁt
Non-operating
proﬁt/loss

Information andCommunication Technology

Travel＋Equity-method gains/losses related to overseas business investments (in overseas real estate segment)

Business proﬁt

from 115.0 billion yen in operating proﬁt to 118.0 billion yen in business proﬁt.

Additional interest-bearing
debt from new
consolidation: ¥20.0 billion

Growth CapEx

30.0
360.0

Note: This includes investments in for-saleproperty and net increases in equity.
Maintenance CapEx (investment
in maintenance and renewal ofexisting infrastructure)

240.0

Return to Shareholders,Interest expense,tax payment etc.

160.0

Increasecompared toprevious plan:¥70.0 billion

Main growth CapEx• Installation of station platform doors
Urban
and making stations more accessible
Transportation

Total capital investment(including lending)• Extension of the Kita-Osaka Kyuko
Line• Naniwasuji Connection Line andShin-Osaka Connection Line

Real Estate• Umekita Phase II Development Plan
• Shibata 1 Project• Senri-Chuo Redevelopment• Developments in the Tokyo
metropolitan area
(Yaesu 2 Naka Redevelopment andHotel Grand Palace site)• Expansion of the overseas real estatebusiness• Expansion of the condominium
business within Japan• Expansion of the short-term-return(ﬁx-and-ﬂip) businessEntertainment• Relocation of the Hanshin Tigers Farm
facility

Other• IT strategy, DX investment, etc.

630.0

Total cash out

790.0International
Transportation＝eﬀorts to grow our overseas business (real estate and other businesses).

120.0＝ Operating proﬁt + Non-operating proﬁt/loss: Equity-method gains/losses related
to overseas business investments (in Real Estate segment)(¥ billion)

Strategic investment framework

EBITDAPro t Plan for Fiscal 2026

Cash out

Increasing investment in growth to enhance the probability of achieving our Long-Term Vision
Following our periodic review of our Medium-Term Management Plan, we increased ourinvestment in growth by 70.0 billion yen. Here, I will explain the background of this initiative.
First, in ﬁscal 2023, we proceeded with our general investments as planned, keeping in mind

Roadmap for Fiscal 2026
We aim to achieve our plans by realizing the beneﬁts of new initiatives we have launched and promoted over the past few years (including
Osaka Umeda Twin Towers South, entertainment streaming businesses, overseas real estate businesses, and digital transformation projects).
At the same time, during the plan period, we will steadily sow the seeds of growth in ﬁscal 2026 and beyond (by expanding investment inour overseas real estate business and for-sale condominium business, our digital transformation projects, and other projects).

100
80

20

Impact of
COVID-19
pandemic

130.0 billion
plus something
extra

89.4

Current plan

FY2024

39.2

Past achievement

2.1

0
2019

2020

2021

Increased
investment
targetinggrowth

90.0 billion

Loss of about¥100.0 billion

60
40

business model, we will develop condominiums and overseas real estate, which have been

FY2031

95.2

Excludesresponse totemporary
demand in travel
and internationaltransportation.

Pandemic recovery period

2022

2023

In ﬁscal 2024, despite the factors that caused a
year-on-year decline in proﬁtability (such as thereﬂexive temporary rebound in demand for travel andinternational transportation), we aim to surpass ourﬁscal 2023 performance by steadily recovering our
proﬁtability and implementing growth initiatives.

2024

2025

2026

・
・
・

2031

(FY)

Notes:
1. Forecasts for ﬁscal 2024 are based on data released on May 15, 2023.
2. Responding to the temporary rebound in demand for travel and international transportation: Includes home support services forindividuals in the travel business being treated for COVID-19 infection and the capture of demand due to tight supply and demand in
the international transportation business.

27

Hankyu Hanshin Holdings Integrated Report 2023

Under these circumstances, given that the end of the COVID-19 pandemic is in view and thethird strategy of our Long-Term Vision, which entails expanding the coverage of our line-side

Base pro t level of¥100.0 billion

expected to be recorded in ﬁscal 2026.

Long-Term Vision. In order to increase the probability of achieving this in accordance with the118.0 billion

120Management Plan, with revenue from land purchased in Japan for construction of condominiums

to increase our proﬁt target for ﬁscal 2031 (130.0 billion yen plus something extra) under our

FY2026(¥ billion)

As a result, we are increasing the probability of achieving the goals of our Medium-Termenvironment has become conducive to forward-looking investments in growth, we have decided■ Changes in operating pro t (up to and including FY2023) and business pro t(from FY2024 onward)

the goal of improving capital eﬃciency as set forth in the ﬁnancial policy of our Long-Term Vision.

posting good results from our eﬀorts to date.

unichi Otsuka

Executive Oﬃcer
Group Planning Division

On the other hand, since the contribution
to proﬁts from these increased investments
will not be made until ﬁscal 2027 onward,
each indicator of ﬁnancial soundness inﬁscal 2026 will temporarily deteriorate incomparison to the previous plan. However,as we expect EBITDA to grow from ﬁscal
2027 onward, we are maintaining ourmanagement target of our interest-bearing
debt/EBITDA ratio of between 5 and 6 forﬁscal 2031 as set forth in our Long-Term
Vision.

Expanding investment in overseas real estate
Promoting appropriate risk control in a growing market●●●

Developing our business in ASEAN and several other countries
Focusing on small-scale projects in ﬂow-oriented businesses (suchas housing) and gradually expanding the scale of our properties
Conducting business jointly with reliable local partners (partners
who understand our Group s intentions)Targeted business scale●

Aiming for an initial proﬁt scale of around 10.0 billion yen

Hankyu Hanshin Holdings Integrated Report 2023

28

Creating Real Value:
Our Story

ProfileCreating Real Value: Our Story

Management Indicator Forecasts
FY2024 forecast*1

FY2026 target

Business proﬁt (① + ②)

¥89.4 billion¥90.0 billion¥118.0 billion

Operating proﬁt (①)¥89.4 billion¥87.7 billion¥115.0 billion−¥2.3 billion¥3.0 billion¥153.7 billion¥156.0 billion¥193.0 billion¥1,106.4 billion¥1,190.0 billion¥1,230.0 billion

Interest-bearing debt/EBITDA ratio

7.2

7.6

6.4

Debt/equity (D/E) ratio*³

1.2

1.3

1.2

¥47.0 billion¥52.0 billion¥75.0 billion

5.3%

5.6%

7% range¥1,063.5 billion¥1,165.0 billion¥1,205.0 billion

6.9

7.5

6.2

Equity-method gains/losses related to overseas business
investments (②)

Interest-bearing debt

Proﬁt attributable to owners of parent
ROE(Reference)
Net interest-bearing debt*⁴
Net interest-bearing debt/EBITDA ratio

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Measures to ensure a strong management focus on capital costs and monitoring of the share price
FY2023 result

EBITDA*²

Creating Real Value:
The Processes*1 Forecasts for ﬁscal 2024 are based on information published on May 15, 2023.
*2 EBITDA = Business proﬁt (Operating proﬁt + Equity-method gains/losses related to overseas business investments) + Depreciation expenses + Amortizationof goodwill*3 D/E ratio = interest-bearing debt / equity*4 Net interest-bearing debt = interest-bearing debt - cash and deposits

In order to ensure management remains focused on capital costs, our Group has adopted return on
equity (ROE) as an indicator as part of our Long-Term Vision. We believe that the key to achieving a
positive assessment from the markets is to aim for growth over the medium and long terms by adhering
the initiatives adopted in our Long-Term Vision.
In order to improve our ROE, the Group utilizes return on invested capital (ROIC) as an importantinternal management indicator with the goal of balancing proﬁts with invested capital. Speciﬁcally, thisinformation is being utilized for business analysis and consideration of business policies from medium
and long-term perspectives. It is also used investment decisions across business management cycles.
ROIC is used as an important indicator because the management of invested capital is criticallyimportant, particularly in the real estate business, which accounts for the majority of the Group s
invested capital. For example, we are also working on a short-term return ( ﬁx-and-ﬂip ) business thatenji oto

contributes to improved ROIC. Following the sale of a certain number of properties in ﬁscal 2023, we

Executive Oﬃcer
Group Planning Division

expect to sell a corresponding number of properties in ﬁscal 2024. We will continue to utilize these
initiatives to improve our capital eﬃciency.

Clearly, when considering new investments, we must undertake a careful examination of businesses with low invested capital. Our
fundamental approach is to promote such business with the awareness that expanding the scale of these business will improve the ROIC
for the entire Group.

Fiscal 2024 Forecast for Earnings and Shareholder ReturnFiscal 2024 Earnings Forecast
For ﬁscal 2024, we expect revenues to increase due to higher condominium sales in our real estate business and amoderate recovery in the number of passengers in the urban transportation business. Moreover, we expect proﬁts toexceed ﬁscal 2023 levels due to the response to the temporary surge in demand* in the travel business and internationaltransportation business in ﬁscal 2023.
*Providing support services for individuals in the travel business recovering at home due to COVID-19 infection, and capturing demand arisingfrom supply/demand imbalance in the international transportation businessTravel

Our goal:
Surpass prepandemic levels.

Capture demand related to the digital transformation.

50.5

Real Estate

International
Transportation

43.5

Steadily capture the recovery in travel demand.

FY201929

Expand the scale of the air freight, sea freight, andlogistics businesses and grow our global network.
For ﬁscal 2026, we forecast a boost in proﬁts from the ﬁscal 2022
completion of Osaka Umeda Twin Towers South, including the Phase II
portion. We will also achieve signiﬁcant growth in our overseas real estatebusiness and domestic condominium sales, which will enable us to exceed
our pre-pandemic levels signiﬁcantly (excluding special factors*).
*Gain on sale of facility land in the Eastern Saito area in Ibaraki, Osaka Prefecture

Urban
Transportation

Urban
Transportation
performancefor operating
proﬁt

20

FY2023
performance(¥ billion)120＋14.3 ‒0.9

110
100
FY2024
forecast

90
80

Responding to the temporary surge in demandin travel and international transportation

70

89.4
FY2023
performance＋0.2 ‒14.9

＋8.9

‒5.9

Increase of
600 million

90.0
FY2024
forecast

Note: Forecasts for ﬁscal 2024 are based on data released on May 15, 2023.

Shareholder Return (Distribution of Tangible Pro ts)
Basic Approach to Shareholder Return
The Group provides a total payout ratio as an indicator of shareholder return, and its basic policy is to provide a stable dividend

Real Estate

Urban
Transportation

40

0Real Estate(Including
specialfactors)60

90.0International
Transportation

SpecialFactors

Information andCommunication
Technology

80

About
20.0
billionSubstantial pro t
increase of about
20.0 billion

TravelEntertainment,
Entertainment,
etc.
etc.
20.9

Entertainment

89.4

600 million

Information andCommunication
Technology

118.0

100

Increase ofEntertainment

114.9

Expand the customer base through the use of digitaltechnology and grow our streaming business as wellas other new revenue sources.

(¥ billion)

Real Estate(¥ billion)■ Trend in business pro t

Urban
Transportation

Reference Data: FY2026 Pro t Compared with Pre-Pandemic Results (FY2019)

FY2026

forecast forbusiness
proﬁtHankyu Hanshin Holdings Integrated Report 2023

In addition to adopting a barrier-free fare system at railway stations andintroducing a reserved seat service, we will focus on reducing costs andadopting other measures to maximize proﬁts. (However, any return to prepandemic proﬁt levels will likely present a diﬃcult challenge).

and implement share buybacks by establishing a total payout ratio of 30

while striving to further strengthen the managementfoundation. Regarding share buybacks, the upper limit of treasury stock holdings is set at 5% of the total number of shares issued;
if the upper limit is exceeded, the share buybacks will be canceled.
Dividend distribution for scal 2023: Annual dividend of 50 yen per share plus 2.0 billion yen in treasury stock buybacks (upper limit)
Planned dividend distribution for scal 2024: Annual dividend of 50 yen per share, planned treasury stock buybacks■ Reference: Method of calculating total payout ratio
Total payout ratio for year n ( ) ＝(Total annual dividends for ﬁscal year n) + (Amount of treasury stock buybacks in ﬁscal year n + 1)
(Proﬁt attributable to owners of parent for ﬁscal year n)

× 100

Hankyu Hanshin Holdings Integrated Report 2023

30

Creating Real Value:
Our Story

ProfileCreating Real Value: Our Story

SpecialFeatureCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Osaka Umeda Twin Towers South(Umeda 1-1 Project)
As a major project that embodies the 2006 business merger

Umeda and Line-Side Communities Are Driving
Growth in Accordance with the Long-Term Vision
We have set making our line-side communities the absolute best among the Kansai networks the ﬁrst, core strategy of
our Long-Term Vision.

between Hankyu and Hanshin, from October 2014 onward werebuilt the New Hankyu Building and Dai Hanshin Building andpromoted the integrated development project. Throughchanges such as the easing of the ﬂoor-area ratio from 1,000%
to 2,000%, we have been able to secure a large ﬂoor spacethat was not possible previously with the two separatebuildings. It also raised the value of the facility and the appealof the area.

As such, our focus is on making our line-side areas much more attractive by engaging in community building andactively leveraging digital innovations with the aim of coping with the shrinking and aging population.

In February 2022, ﬁnal construction was completed and in
the following month the oﬃce section opened. In April, theHanshin Umeda Main Store, a department store, fully opened
and began operations. The tower has also made a massive
contribution to proﬁt growth in our real estate leasing business.
PurposeOﬃces, department store, halls, etc.

Total ﬂoor space

Approx. 260,000 m2

The Osaka-Umeda area is our most important business base, and based on our Umeda Vision, we are pushing ahead with newSize

38 ﬂoors above ground and 3 below grounddevelopments such as the Shibata 1 Project, and will ensure the area continues to evolve into a globally competitive city.

CompletedFeb. 2022

Approach 1

Community Building in the Osaka-Umeda Area

GRAND GREEN OSA A, Umekita Phase II Development Project
GRAND GREEN OSAKA
Umekita Phase II
Development Project

Shibata 1 Project〈completion date TBA〉

〈initial opening in Sep. 2024〉

n )
io n
at tioSt sta
d
un

sa
O o
R rgr
e
d
n
U

Hotel new Hankyu
Osakahotels, commercial facilities, and residences, but also an approx.

Corporation) and six design and operating companies (including

45,000 m² city park and innovation facility. The area is scheduled

Hankyu Hanshin Properties) formed respective consortia.

for an initial opening in September 2024, and then a full open inHankyu Sanban Gai
Shopping Center

Hanshin
Osaka-Umeda Sta.

Ni Osa
sh ka
i-U M
m et
ed ro
a
St
a.

〈construction completed inFeb. 2022〉

R

ita

sh

in

ch

iS

ta

.

Osaka Umeda
Twin Towers
South

Sonezaki 2 Project〈completion date TBA〉

Os
Higa aka Metr
shi-U
o
med
a Sta
.

R Osaka Station

Osaka
Ume Metroda Sta.

Hankyu Terminal Bldg.

Osaka Umeda
Twin Towers South■ Osaka-Umeda area office oor space（m2）
Umeda Central Bldg. 2,500,000
Osaka Nikko Bldg.
Umeda OS Bldg.
2,000,000
1,500,000

March
2003

March
2013

March
2023
South zone

Source: Monthly surveys on Osaka s latest oﬃce market conditions (published by Miki Shoji Co., Ltd.)

What makes Osaka-Umeda special
Osaka-Umeda is the cornerstone of the transportation network that connects the major cities of Kyoto, Osaka, and Kobe. The

Purposedistrict prospered as a center of culture revolving around commerce, and had relatively few oﬃces. Through the developmentsthat we are involved in, such as Osaka Umeda Tower Towers North and South, in recent years there has been a supply of a goodnumber of sophisticated oﬃces and, in the future, there are large-scale oﬃce buildings scheduled to open. Only two kilometers indiameter, the compact Osaka-Umeda area is home to seven stations, as well as oﬃces, commercial facilities, hotels, ﬁnancial institutions, legal oﬃces, and more besides. It excels as a business environment that always commands praise.

31

Hankyu Hanshin Holdings Integrated Report 2023

the spring of 2027.

HankyuOsaka-umeda Sta.

(

Assets owned or shared by theGroup (incl. leased property)

and innovation, the integrated development will combine oﬃces,

nine companies engaged in a joint venture (including Hankyu

In line with our community building concept of fusing greeneryka

LegendThe Group was selected to lead development of the area after

Total ﬂoor
space

City parkOﬃces, hotels,commercial facilities,
MICE facilities,
residences, etc.

Museum; large roof
facility; dining
facilities; etc.

Approx. 407,250 m2

Approx. 11,000 m2

North zone
Innovation facility,
hotel, commercial
facilities, residences,etc.

Approx. 136,800 m2

Mar. 2023

JR Osaka Station(Umekita area) opening

Sep. 2024

Initial opening*1

Spring 2025

Opening of all leased
buildings*2

Spring 2027

Complete opening*1 North district leased building, and part ofthe city park
*2 South district leased building

Hankyu Hanshin Holdings Integrated Report 2023

32

Profile

Creating Real Value: Our Story

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Shibata 1 Project

Sonezaki 2 Project

Nishinomiya-kitaguchi area

Focused on the next generation, we will aim to replace theWe have signed a basic agreement with Heisei Buildings Co., Ltd.

As part of its community building eﬀorts in the area around Nishinomiya-kitaguchi Station, in 2008

building for the Hotel new Hankyu Osaka/Hankyu Terminal

to move forward with a study into jointly replacing the Umeda

Hankyu Corporation opened a large-scale commercial facility, Hankyu Nishinomiya Gardens Main

Building, make complete repairs to its Hankyu Sanban Gai

OS Building, Osaka Nikko Building, and Umeda Central Building.

Building. As well as attracting educational and other institutions to the area, the company has

underground area, strengthen the complex s functions as a

By rebuilding these three as one single, integrated building weprovided a lot of quality homes and continuously striven to enhance its attractiveness andstation terminal, and develop the site as a combined-function

will secure a total ﬂoor space of around 3,000 m², and we will be

convenience.

facility that suits its role as the gateway to the Osaka-Umeda

able to develop a symbolic, highly visible tall building along

In September 2023, we opened Hankyu Nishinomiya Gardens Plus Building, a collection of large-

area.

Midosuji, Osaka s main street. In the future, we will look atscale developments in the southeast area of Nishinomiya-kitaguchi. This kind of community

speciﬁc ways of utilizing the advantages of this site, such as

development is thanks to the support of many people, and the result is that Nishinomiya-kitaguchi

introducing oﬃce functions.

has established its position as a place where people want to live and as such is always at or near

For the Group to come together and promote this project, in
October 2022, we have gathered members from across theGroup and formed the Osaka-Umeda 2030 Project Team. Going

Financial Section andCorporate Data

the top in the Kansai region s Most Desirable Towns to Live In survey.

forward, we will be combining our strengths and putting in placea framework to ﬁrm up project details from a range of angles.

Hankyu Nishinomiya Gardens Plus Building, opened in September 2023
This complex integrates commercial facilities, oﬃces, and the rental
condominium building Geo Ent Nishinomiya-kitaguchi

Umeda Vision
In May 2022, we formulated the Umeda Vision as a concept to help us improve the value of our most important site, the Osaka-

uso area

Umeda area, which is the biggest transport hub in western Japan, with the aim of raising the area s global competitiveness andmaking it a base for international exchanges.

Hankyu Juso Station is a major hub where three major Hankyu lines̶the
Kobe Line, Takarazuka Line, and Kyoto Line̶converge, and in the future
two new lines̶the Naniwasuji Connection Line and Shin-Osaka

Six basic policies

1

Make Umeda a place of co-creation that produces newer value

2

Make Umeda a place that facilitates encounters and interaction

3

Make Umeda a dynamic cluster of people and companies

4

Make Umeda a place that uses the latest digital technology to oﬀer new value

Umeda for the new normal

5

Make Umeda a sustainable place

Promoting the Umeda brand to the world

6

Strategically organize marketing communications to the world

to Shin-Osaka and Kansai International Airport. Through community
building that integrates the area with the area around Shin-Osaka Station,
which has been designated as a priority district for urban regeneration,
the area has considerable potential to rise in value.
About three minutes walk from Hankyu Juso Station is the former siteof the Yodogawa Ward Oﬃce, and Hankyu Hanshin Properties has beenchosen to redevelop it. Its development plans are for a complex that will
include the condominium building Geo Tower Osaka Juso. We have嵐山

For more details on the Umeda Vision, please see our website.

https://umeda-vision.hhp.co.jp/ (Japanese only)

京都河原町

嵐山線

Approach 2

桂

京都府

Community in Our Other Line-Side Areas

京都本線

西山天王山

enhance their appeal and convenience. Going forward, we will eﬀectively utilize our assets to tie them into improved value for能勢電鉄Nishinomiyakitaguchi

HankyuImazu
Line

to Osaka-Umeda

Hankyu Koyo Lineay

HankyuItami Line

HankyuTakarazuka
LineTsukaguchi

Imazu

Imazu

Nishinomiya-kitaguchi
Mukogawa

Mukogawadanchi-Mae
Kobe-Sannomiya

Motomachi

Hanshin
Main Lineo e Airport

Airport (Itami Airport) and is densely packed with retail facilities, oﬃces, homes, and manyother functions. The extension of the Kita-Osaka Kyuko Line is scheduled to open on March 23,

made up of representatives from Toyonaka City and local landowners, and we are investigating

Approx.

public-private partnerships for future community building.

20 mins.

to Osaka-Umeda

Esaka

Tenjimbashisuji
6-chome

Osaka-Umeda

uso

Hankyu Hanshin Holdings Integrated Report 2023

Momoyamadai

Approx.

Shin-Osaka

3 mins.

to Osaka-Umeda

Umeda

Hanshin Namba Line

Osaka Bay
Osaka-Namba

Senri-Chuo area

33

Senri-Chuo

Esaka

Awaji

Shin-Osaka

Minoh-SembaHandaimae

Extension

Ryokuchi-Koen

HankyuKyoto Line

Daimotsu

Hanshin
MukogawaLineclosed at the end of ﬁscal 2026) and oﬃce buildings. At the moment, we have joined a council

Senri-Chuo

HankyuSenri
Line

Minoh-Kayano

The Senri-Chuo area boasts easy access to Shin-Osaka, Osaka-Umeda, and Osaka International

We own a number of assets in the area, including the Senri Hankyu Hotel (scheduled to be

Osaka
Prefecture

Kita-senri

Juso
Kobesannomiya

Nishidai

Itami

KoyoenShukugawa

Kobe Rapid Transit
Railway

Shinkaichi

Ishibashi
handai-mae

Osaka
Metro

Hankyu Kobe LineK
ctricobe
Railw

Senri-Chuo

Osaka
International
AirportItami Airport

Kita-Osaka Kyuko

12 mins.

Approx.

Ele

Minoh Minoh-Kayano

Kawanishi-noseguchi

Takarazuka

potential and develop it as a place people want to live.

2024, and this is predicted to improve convenience for Senri-Chuo even further.
HankyuMinoh Line

Hyogo
Prefecture

positioned this project as an opportunity to make the most of the area s

Senri-Chuo area

妙見口
For many years, in each of our line-side areas, we have worked to日生中央
create desirable
towns where people want to live and visit to

the areas.

Geo Tower Osaka Juso
As well as condominium housing, it is being developed as acomplex with a library, childcare facilities, retailers, a school, andother facilities, which will help to enliven the district

Kita-Osaka Kyuko LineThe basic value that will equiparea around the station will become far more convenient with its accessOsaka Metro
Midosuji LineAn international city with unique valuethat beats the competition

Connection Line̶are also planned to meet here. With the new lines, theKita-Osaka Kyuko Line Extension(Scheduled to open on March 23, 2024)

Hankyu Hanshin Holdings Integrated Report 2023

34

Creating Real Value:
Our Story

ProfileCreating Real Value: Our Story

SpecialFeatureCreating Real Value:
The Processes

Entry into the development and leasing
business

Creating Real Value:
The Foundations

Approach 2

Financial Section andCorporate Data

E orts in the U.S.A.

We are building up a track record in residential sales, and slowly

Another Driver of Growth in Line with theLong-Term Vision (Overseas Real Estate)
The third strategy of our Long-Term Vision is to expand the coverage of our line-side business model.
For us to be able to grow sustainably even as the Japanese population shrinks, we have to harness the dynamism ofgrowth markets, and put to use the track record and expertise we have gained in our line-side areas to roll out ouroverseas real estate business.

accumulating experience in the overseas real estate business,while also constructing an information network.
As such, as well as starting development and operation oflogistics facilities in Indonesia in 2015, in 2019 we started on the
Plaza Indonesia Complex there, and entered the lease holding
and management business. Also in Indonesia, we worked underTo speed up our overseas real estate business, since 2022 wehave been acquiring rental residences in the U.S.A. which has anenormous leasing market and for which movement is high andrents are predicted to rise. Going forward, through renovations
and similar, we plan to improve the value of our holdings.

a policy of acquiring already operating properties that are lowrisk and that can achieve immediate revenues. In line with this, in
2022, we made our ﬁrst acquisition as part of a major investment:
the Central Park Mall. In September of the following year, we
acquired the adjoining Neo Soho Mall. Through such eﬀorts, weare building a base for our leasing business in the ASEAN region.
Fox & Finch, rental residences in
SeattleApproach 1

E orts in the ASEAN Region

Westview Village Apartments,
rental residences in Renton

Central Park
Residence
Soho

Thailand

VietnamResidential sales

Residential sales
Logistics facilities

APL Tower

The Philippines

Pullman Hotels& Resorts

Soho CapitalPark at 33rd, rental residences in
Phoenix

Residential sales

Central Park Mall

Future outlook

Logistics facilities

Singapore

Neo Soho Mallbillion. Our aim for the future is to reach business proﬁt of ¥10.0

Central Park Mall (acquired Sep. 2022)
Neo Soho Mall (acquired Sep. 2023)

Malaysia
Residential sales

Neo Soho Mall

Approx. 85,700 m²(complex site area)

Approx. 21,700 m²

Approx. 188,000 m²(mall area)

Approx. 63,500 m²

Size

10 ﬂoors above groundand 2 below ground

7 ﬂoors above groundand 2 below groundPurposeCommercial facility(approx. 300 tenants)

Commercial facility(approx. 70 tenants)

Total ﬂoor
space

Indonesia
Residential sales
Commercial facilities

Oﬃces
Hotels

Logistics facilities

Expanding our residential sales businessbillion at as early a stage as possible.

Central Park Mall
Total sitearea

Note: Total site area and total ﬂoor space include equity belonging tobusiness partners.

Our ﬁrst forays abroad were limited to ﬂow-oriented business (the residential
sales business), which is comparatively low risk, but from this stepping stone
we have fully entered the overseas real estate business. Our main target isBusiness proﬁt* for ﬁscal 2024 are predicated to reach ¥5.1

■ Changes in revenues and pro t in theoverseas real estate business(Billion yen)

FY2023 results

FY2024 forecast+/−

Operating revenue

3.2

6.8

＋3.6

Business proﬁt*

1.1

5.1

+4.0

Operating proﬁt

1.1

2.8

+1.7

Equity-method gains/losses related to overseas
business investments

―

2.3

+2.3

* Business proﬁt = Operating proﬁt + Equity-method gains/losses related
to overseas business investments
Note: The anticipated full-year results for ﬁscal 2024 are based on
information announced on May 15, 2023.

in the volume zone of user demand, and as such we are rolling out residential
sales for homes such as condominiums and detached houses.

E orts to minimize risk

■ Number of residences sold in the ASEAN region(including equity belonging to business partners)(As of September 1, 2023)(Units)
30,00029,87020,00013,990Thailand

Vietnammore than 50,000 units
cumulatively
4,220

3,980

The Philippines

Indonesia

As we expand our overseas real estate business, we are carrying out the following and similar initiatives to ensure risk is kept to aminimum.
• In addition to dealings in areas where the economy is predicted to grow (like the ASEAN region), we conduct business in developed nations that see
a lot of movement and large numbers of transactions (such as the U.S.A.).

Involved in

10,0000Niche Mono Chaengwatthana, Thailand• For our ﬁrst entries into overseas markets, we start with ﬂow-oriented business (residential sales business) and ﬁx-and-ﬂip business, which arecomparatively low-risk, even compared to stock (leasing business) based on long-term holdings.
• For residential sales, we target user demand in high-volume demographics, which makes the business less susceptible to changes in the economic
environment.
• To avoid an over-concentration in our business portfolio, in our ﬁrst overseas market entries we start with small projects and gradually increase thescale. We also roll out our business into multiple countries.

850• In order to reduce country-speciﬁc risks, such as diﬀerences in commercial practice or legal systems, we collaborate with trustworthy local partners.

Malaysia

Idesia San Jose Del Monte, Philippines

35

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

36

Profile

Creating Real Value: Our Story

SpecialFeatureCreating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

2. Barrier-free measures at railway stations
The Group s railway companies are eliminating steps andinstalling elevators at train stations to provide passengers withThe Pursuit of Safety and Peace of Mind in the Railway Businessgreater convenience and peace of mind when using our rail

As transportation is an important public service, the railroad companies in the Group aim to provide stable transportation service with top priority placed

make barrier-free, Hankyu Corporation installed an elevator, aon safety. We are committed to improving safety so that everyone can use our trains with peace of mind. In recent years, we have been enhancing boththe hard infrastructure and soft service side to promote barrier-free measures so that seniors and physically challenged passengers can use our trains
and stations with greater ease. At the same time, we are strengthening our response to crimes and other critical situations onboard trains.

systems.
At Kasuganomichi Station, which was considered diﬃcult to

Kasuganomichi Station (Hankyu Corporation) Left: Elevator Right: Barrier-free restroom

barrier-free restroom, and wheelchair-accessible ticket vending
machines (with space under the counter for wheelchair footsupports), completing the improvements in March 2023. Hanshin
Electric Railway is in the process of widening the platform at
Osaka-Umeda Station and installing an elevator and escalators(with the improvement work scheduled to be completed around

Kasuganomichi Station(Hankyu Corporation)

spring 2024).
We want all of our stations to be more than just places for

Osaka-Umeda Station West Gate (Hanshin Electric Railway)■ Status of barrier-free implementation at railway companies

getting on and oﬀ trains̶we want them to be inclusive facilities
that can be used with ease by all people.

Approach 1

Initiatives to Improve Safety and Barrier-Free Accessibility

Rate of step-barrier removal

Rate of barrier-free restroom installation

Hankyu Corporation

99％

98％

Hanshin Electric Railway

100％

100％

Kita-Osaka Kyuko Railway

100％

100％

Nose Electric Railway

100％

71％

*Percentage of stations that have an average ridership of 3,000 or more
people per day

1. Installing platform screen doors at all stations
To improve safety, Hankyu Corporation and Hanshin Electric Railway are moving ahead

3. Improved railcar safety and barrier-free measureswith installing platform doors on station platforms. The two railways are utilizing a barrierfree fare system at railway stations set up in December 2021 to more quickly and steadily

The new Hankyu Series 1000 and Series 1300 railcars will have door opening/closing warning lights, in-train information display panels,

install accessible facilities. Hankyu Corporation has set the end of ﬁscal 2041 and Hanshin

and extra space for wheelchairs. In ﬁscal 2023, two Series 1300 trains were deployed on the Kyoto Line. The newly built railcars employ

Electric Railway has set ﬁscal 2043 as the general targets to complete the installation ofan aluminum double skin structure to increase the strength of the chassis and are outﬁtted with larger bench-seat end dividers andplatform doors (sliding or ﬁxed) at all stations.
Hankyu Corporation had already installed sliding platform doors at two stations̶Juso
and Kobe-Sannomiya̶and completed the installation at Kasuganomichi Station at theend of ﬁscal 2023. The company plans to install sliding platform doors at Nishinomiya-vertical handrails to prevent passengers from falling or getting thrown during emergency braking, thereby improving safety. Also, Hankyu
Kasuganomichi Station Platform(Hankyu Corporation)

Corporation will be putting the same features into existing railcars with upcoming renovations. Starting in ﬁscal 2021, a chime that rings

In the unlikely eventthat a passenger getscaught between theplatform door and therailcar, the platform
door can be opened
manually by pressing
the emergency button.

kitaguchi, Katsura, and Hotarugaike stations by around the spring of 2025.
Hanshin Electric Railway has installed sliding platform doors at Kobe-sannomiya andOsaka-Umeda stations, and plans to install them on platforms No. 1 and 2 at Amagasaki
Station by the end of ﬁscal 2024.
Kita-Osaka Kyuko Railway has completed the installation of sliding platform screen

when the doors are standing open will be introduced to help visually impaired passengers locate the train entrances on the platform forboarding.
Hanshin Electric Railway has installed a wheelchair/stroller space in every railcar, along with between-car fall-prevention barriers.
Already, 95% of its railcars are now equipped with in-train information display panels. Also, the hand straps are adjustable to threepositions, allowing passengers of diﬀerent heights to hold on comfortably when the train sways.

doors at all of its stations and is also raising the height of platforms to eliminate the heightdiﬀerence between the platform and the railcar to improve safety.

■ Platform installation status

HankyuCorporation

HanshinElectric
Railway■ Amount of fees to be collected under the barrier-Juso Station

Installed on the Takarazuka Line (Platforms
3 and 4) and Kyoto Line (Platform 5) at theend of FY2019

Kobe-Sannomiya Station

Installed on all platforms at the end of FY2022

Kasuganomichi Station

Installed at the end of FY2023

free fare system at railway stations

Katsura Station

adding the barrier-free charge to the fare in April 2023.
Hankyu Corporation

To be installed by spring 2025

Hotarugaike Station

Amount to becollected annually

Platform screen doors (sliding or xed) to be installed at all
stations by around the end of FY2041

Collection
periodKobe-sannomiya Station

Installed on all platforms at the end of FY2022

Osaka-Umeda Station

Installed on new Platform 1 in October 2021
To be installed on all platforms by the end of
FY2024

Amagasaki Station

To be installed by the end of FY2024 on
Platforms 1 and 2

Hankyu Hanshin Holdings Integrated Report 2023

Larger wheelchair space(Hankyu Corporation)

Large seat-end dividers and vertical In-train information display panel(Hanshin Electric Railway)
handrails (Hankyu Corporation)

Adjustable-height hand straps(Hanshin Electric Railway)

Hankyu Corporation and Hanshin Electric Railway started

Nishinomiya-kitaguchi Station

Platform screen doors (sliding or xed) to be installed at all
stations by around FY2043

37

Sliding platform screen door emergency button

Total amountto be collected

Total cost of
installation

3,672 million yen
13 years(April 1, 2023‒March 31, 2036)*Scheduled to continue
beyond FY2037

Hanshin Electric Railway

1，
350 million yen
13 years(April 1, 2023‒March 31, 2036)*Scheduled to continue
beyond FY2037

47,780 million yen

17，
550 million yen

91,258 million yen

32,000 million yen

Plan for FY2022‒FY2026
17,222 million yen
Plan for FY2027‒FY2036
74,036 million yen*Scheduled to continue
beyond FY2037

Plan for FY2023‒FY2026
8,800 million yen
Plan for FY2027‒FY2036
23,200 million yen*Scheduled to continue
beyond FY2037■ Safety-related capital investment
In ﬁscal 2023, Hankyu Corporation and Hanshin Electric Railway
performed many kinds of work̶seismic reinforcements of elevatedbridges, station improvement work aimed primarily at widening platforms
and making them barrier-free, platform door installations, and theconstruction of new railcars and improvement of existing ones. In
addition, Hankyu Corporation performed trackside construction work
along sections of track with a high risk of landslide to prevent slope
collapse and rock fall, improve drainage, and prevent sudden, highrainwater inﬂow from causing landslides.
Hanshin Electric Railway is making steady progress on the Hanshin
Namba Line Yodogawa Bridge replacement work (scheduled forcompletion in ﬁscal 2033), which includes replacing track in some

Capital investment in railway operation business
Safety-related capital investment

Other capital investment

Note: The total length of lines operated is 143.6 km
for Hankyu Corporation and 48.9 km for
Hanshin Electric Railway.

(¥ billion)
25
20
15
10
5
0

4.7

4.3

14.1

2.3

6.9

6.4

14.4 0.7 12.6
0.6 12.2

4.1
1.7

11.5

1.6

4.5

4.8

3.5

4.8

3,1

Hankyu Hanshin

Hankyu Hanshin

Hankyu Hanshin

Hankyu Hanshin

Hankyu Hanshin

2019

2020

2021

2022

2023

(FY)

sections between Fuku Station and the Shin-Yodogawa Bridge.

Hankyu Hanshin Holdings Integrated Report 2023

38

Profile

Creating Real Value: Our Story

Approach 2

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

SpecialFeatureEmergency Response-Strengthening Initiatives

1. Strengthening responses to violent behavior on a train
In response to a violent incident on a train run by a diﬀerent company, we have

In addition to an
emergency call button,
an intercom system for
emergencies is being
installed that allows
passengers to speak tocrew members in theevent of an incident in
the car. (Hankyu Corporation)

been working on emergency response measures beyond readiness for an
emergency caused by a natural disaster̶we are strengthening our readinessto respond to a terrorist attack or other act of violence.
Hankyu Corporation is conducting drills in conjunction with the police inwhich station staﬀ and train crews cooperate in guiding passengers to evacuate,
assuming a situation before the police arrive in which a perpetrator has

Working toward Carbon Neutrality
Under our Long-Term Vision announced in May 2022, we adopted a new CO₂ emissions reduction target of net zero forﬁscal 2051 as a means of achieving the 1.5°
C temperature rise scenario set by the Paris Agreement. We also updated
our interim target for ﬁscal 2031 to a 46% reduction in CO₂ emissions from ﬁscal 2014 levels. As fundamental eﬀorts toachieve carbon neutrality, we will take various initiatives to steadily reduce CO₂ emissions and strengthen collaboration
with customers and local communities.

attacked passengers with a knife. The company is also taking steps to moreclearly indicate the location of emergency call buttons and other equipment to
use in times of emergency, and hanging posters that inform passengers of how

Fundamental eﬀorts to achieve carbon neutrality

to use them and what other precautions to take. Additionally, to enhance
security onboard trains, security cameras have been installed on some trains inservice, and their operation is being tested. The installed security cameras will

Steadily promoting energy-saving measures

allow the train driver and control center to see what is going on inside the cars

Firstly, in order to reduce the Group s base energy usage, we will steadily promote greater energy eﬃciency while also looking at

to facilitate a faster response in the event of an emergency.

ﬁnancial soundness and the eﬃciency of investments.

Hanshin Electric Railway also conducts drills for dealing with violent behavior
at each station jurisdiction. At Sakuragawa Station, where Hanshin runs a direct
service with Kintetsu Railway, joint drills were conducted in April 2022 and asystem of close cooperation has been established to ensure the safety of all

Violent behavior response drills(Left: Hankyu Corporation, Right: Hanshin Electric Railway)

passengers. Passenger rescue and evacuation guidance drills were also

Considering energy creation
We will push forward with studies into how we can create energy (such as by introducing renewable energy generation facilities, etc.),
while also keeping ideas such as technical trends and the proﬁtability of our businesses.

conducted for a scenario in which a J-ALERT warning is issued on train in
operation.

Purchasing renewable energy (to add environmental value)
Where the eﬀorts detailed above in ① and ② alone are insuﬃcient to achieve our target, we will cover the diﬀerence by buying■ Other measures to further improve safety

electricity above to add environmental value.

Hanshin Electric Railway

Measures will be taken such as reinforcing patrols and

A comprehensive train accident response training drill was held, based on thestrengthening cooperation with the police according toscenario of a train derailment caused by a vehicle stalled at a crossing. More thanthe level of danger in circumstances such as an

100 people participated in the drill, including the company president and the chief

anticipated terrorist attack or other situation that could

safety management oﬃcer. The drill was designed to improve judgment andhave serious, lasting social impact, or if a warning of

response capabilities for the quick and unerring evacuation of passengers to ensure

such an attack has been issued and continuous

their safety, which is our top priority. The drill was intended to verify how quickly thevigilance is deemed necessary, if a dangerous object or

extent of damage could be conﬁrmed, information could be collected andperson is found, or if damage occurs. In addition,communicated for repairs to be made and operations resumed, and how to provide

approximately

information to the public regarding the status of train operations and other matters.

1,200

Trial run

Restoration
work

Information sharing on damage and restoration status andinformation provision to customers

Flow of training

2. Improving the provision of information to foreigners visiting apan intimes of natural disaster or other emergency
When train service is delayed or suspended due to a typhoon, heavy rains, or other natural phenomenon, or
due to an accident resulting in injury or death, it is important to provide current information to foreign visitors

Resumption ofservicefurther crimes.

Establishmentof railroad
emergency
response
headquartersof all stations to prevent

Assessmentof damages

platforms and concourses

Passenger
rescue andevacuation
guidance

been installed on the

Accident occurs

security cameras have

Our Group s CO
Emissions Reduction
Target(announced in May
2022)*Scope 1 and 2 equivalent

Fundamental e orts to achieve carbon neutrality

Hankyu Corporation① Steadily
promotingenergy-saving
measures② Considering
energycreation③ Purchasing
renewableenergy(to add
environmental
value)

Since March 2020, Hankyu Corporation has been utilizing tablet devices at all of its train stations equipped
multilingual station announcements both during normal times and when the train schedule gets disrupted.
Conductors mobile information terminals are also equipped with this app, enabling in-train announcements to
be made in multiple languages to provide information on train service (in the event of temporary suspensions).

39

Hankyu Hanshin Holdings Integrated Report 2023

reduction

616,365 t-CO2

FY2014 Results

Net zero

361,832 t-CO2

332,837 t-CO2

FY2023 Results

Systematic
upgrades toenergy-eﬃcientrolling stock

FY2031 Targets

Electric buses(Left: Hankyu Bus
Right: Hanshin Bus)

Introduction ofelectric buses

Solar power
generationequipment

Collaboration withcustomers andlocal communities

Introduction andexpansion of power
derived fromrenewable energy
Emission
quotas also
being used
Formation of atransportation
network with low
environmental impact

FY2051 Targets

Left: Hankyu Corporation 1000 Series
Right: Hanshin Railway 5700 Series

Hanshin Koshien Stadium Hankyu Settsu-shi Station Hanshin Oishi Station Hankyu Nishinomiya-kitaguchi Station

to Japan about the situation as quickly as possible to ease their anxiety.
with a multilingual voice translation app. These devices have started being used at major stations to provide

46

compared to FY2014

Hanshin Koshien
Stadiumcarbon-oﬀset
games held

Introduction and expansion of
power eﬀectively derived fromrenewable energy for oﬃce buildings
and commercial facilities operated
by Hankyu Hanshin Properties

We will promoteenergy conservationand consider energy
creation while promoting
the use of renewableenergy as we watch
technological trends.

Takarazuka Grand
Theater introducescarbon-neutral city gas

Larger walking and bicycling zone accompanying
the extension of the Kita-Osaka Kyuko Line

Zero-Carbon
Baseball Park

Decarbonization of theentire area through the
Zero-Carbon Ballpark
Project

Aiming to achievea sustainable society
through collaboration
with customers andcommunities

Hankyu Hanshin Holdings Integrated Report 2023

40

Profile

Creating Real Value: Our Story

Approach 1

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Introducing renewable energy-derived electricity at office buildings and commercial facilities

Energy Efficiency Initiatives

In April 2022, at the Osaka Umeda Twin Towers North/South buildings, we introduced Non-Fossil
Certiﬁcates With Tracking*¹ to utilize electricity eﬀectively derived from renewable energy*². We will

Upgrading to energy-efficient rolling stock

be applying this system to additional properties, and by ﬁscal 2026 we plan to have oﬃce buildings

Railway operations account for 40% of the Group s energy usage, which is why weswitch to renewable energy eﬀectively for the bulk of their power consumption*⁴. In this way,

and commercial facilities in the Osaka-Umeda district and along the Hankyu and Hanshin lines*³

place high priority on reducing CO₂ emissions from railway operations. We are havingbuilding owners and tenant ﬁrms are uniting in a societal eﬀort to achieve carbon neutrality.

discussions with rolling stock manufacturers focusing on introducing energy-eﬃcientrolling stock or upgrading the eﬃciency of existing railcars. Hankyu Corporation andHanshin Electric Railway have, for example, adopted a highly eﬃcient variable-voltage
variable-frequency (VVVF) inverter control system using a permanent magnet
synchronous motor in their latest and most energy-eﬃcient rolling stock. All lights,
including headlights, were replaced with LED lights, resulting in an electricity
consumption reduction of about 50%‒60% from conventional rolling stock. The two

1000 Series (Hankyu Corporation)

Osaka Umeda Twin Towers North (left); South (right)*1 Certiﬁcates issued for the environmental value of electricity derived from non-fossil powersources (renewable energy, etc.) that include speciﬁc attribute information (tracking) about thepower-generating facility, such as its location. By adding a certiﬁed renewable energy
designation to electricity, it becomes electricity eﬀectively derived from renewable energy.
*2 For both the common areas and private oﬃce areas of the buildings*3 Excluding some properties, such as those scheduled for reconstruction or redevelopment,
properties with extremely low power consumption, and properties where the Group does nothave energy management rights*4 Excluding private power generation using a gas cogeneration system

railway companies are also seeking to introduce aluminum bodies and stainless steel
bodies for rolling stock, which are lighter than conventional steel and can run on less

Emission quotas also being usedelectricity due to their lighter body weight.

Hanshin Koshien Stadium was able to oﬀset approximately 200 t-CO₂ in ﬁscal 2023 by holding six carbon oﬀset games using the J-Credit
Scheme*¹, with the endorsement and support of Okamura Corporation. The Takarazuka Grand Theater switched to carbon-neutral city

Upgrading to energy-efficient rolling stock (as of March 31, 2023)
Hankyu Corporation rolling stock:

Hanshin Electric Railway rolling stock:• VVVF: 63% (105/168 train units)• VVVF: 70% (53/76 train units)• Aluminum bodies: 842 (65%)• Aluminum bodies: 162 (47%)• LED lights: 772 (60%)• LED lights: 220 (67%)

Note: Total rolling stock: 1,291

Note: Total rolling stock: 358

gas*² in August 2023 for the city gas used in the theater. This is expected to reduce annual CO₂ emissions by approximately 1,300 t-CO₂
per year (equivalent to the amount used by 1,300 ordinary households).

5700 Series (Hanshin Electric Railway)

Introduction of electric buses forlow environmental impact
Hankyu Bus introduced two electric buses in October 2021 as Osaka
University campus liaison buses. These buses emit no CO₂ as they run, andthus have low environmental impact. At present, those two electric buses
are running under the jurisdiction of the Senri Oﬃce, while four are runningon routes under the jurisdiction of the Ibaraki Oﬃce.
Electric bus (Hankyu Bus)Electric bus (Hanshin Bus)

Hanshin Bus also began operating two electric buses in May 2023. These
are the ﬁrst electric buses running on a passenger route in Hyogo Prefecture.

*1 J-Credit scheme: A program under which the Japanese government certiﬁes amounts of CO₂ and other greenhouse eﬀect gases reduced/absorbed throughthe introduction of energy-saving equipment, forest management, and other eﬀorts as credits*2 Carbon-neutral city gas: city gas that uses carbon-neutral LNG, which means that the greenhouse gases generated in the entire process from the mining to
the combustion of natural gas are oﬀset by credits

Approach 3

Contributing to Achieving Carbon Neutrality across Society

Formation of a transportation network with low environmental impact
Compared to passenger cars, trains produce about one-eighth the amount of carbon emissions by carrying capacity, making rail a low-impact, environmental
mode of transportation. Improving the convenience of rail travel is an eﬀective means of reducing CO₂ emissions society-wide, as people will tend to drive less.
We are working to create a transportation network of low environmental impact centered around train stations. This involves expanding our rail network,
as exempliﬁed by the Hanshin Namba Line, and redeveloping our bus network, as well as improving systems for bicycle use, which includes bicycle rental andbicycle parking facilities. The extension of the Kita-Osaka Kyuko Line scheduled for completion in March 2024 will create two new stations in the middle of thecity on a north-south axis. Large numbers of people in the vicinity of the new stations will either walk or ride their bicycles to the stations. A reorganization ofApproach 2

Creating Energy and Utilizing Renewable Energy (for Environmental Value)

Installation of solar panels

Implementations

As part of its Zero-Carbon BallPark Project, Hanshin Electric Railway aims to help make theinstallations on the roofs of railroad station buildings.

entire area carbon neutral and is working on thorough measures that include reducing

Urban transportation: Hanshin Oishi Station,energy usage and adopting renewable energy systems. These measures are being put into

Hankyu Settsu-shi Station,

place across the region, from Odaminami Park̶a location in Amagasaki, Hyogo, that is set

Hankyu Nishinomiya-kitaguchi Station

to be the new home of the Hanshin Tigers Farm (the base for the Tigers farm team)̶as well
Hanshin Koshien StadiumDreams and Communities of the Future SDGs Trains
To commemorate the 10th anniversary of the Hankyu Hanshin Dreams andHankyu Nishinomiya-kitaguchi Stationas Hanshin Electric Railway s train stations in Amagasaki that provide access to the park.
The project is a joint proposal by the Amagasaki City authorities and Hanshin Electric Railway and was selected by the Ministry ofEnvironment in April 2022 for inclusion on its List of Decarbonization Leading Areas* (First Round). During selection, the proposal was
praised for the way in which, by working with the Hanshin Tigers, its aims of community development, tourism promotion, regional
revitalization, and carbon neutrality, were highly achievable and for the eﬀect the announcement of the project had. The proposal was also

Communities of the Future Project, in May 2019 we began running Dreams andlauded for the plans to help make the railway stations carbon neutral that provide access to the park and plans to introduce electric buses.

Communities of the Future SDGs Trains (three sets of Hankyu trains; one set of*Decarbonization Leading Areas: Areas that aim to achieve virtually zero CO₂ emissions from households and the business sector (stores, buildings, etc.) toachieve carbon neutrality by 2050 through pioneering projects selected by the Ministry of the Environment

Hanshin trains) to deliver messages aimed at achieving the SDGs in cooperation with
the national and local governments, as well as companies and civic groups. The

41

transportation.

ero-Carbon Baseball Park

generation equipment at various facilities in addition to puttingEntertainment: Hanshin Koshien Stadium

modal shift from private cars to public transportation. Going forward, we will continue to work with national and local governments to promote public*A carbon reduction of 1,310 t-CO₂ per year by extending the Kita-Osaka Kyuko LineThe Group is reducing CO₂ emissions by installing solar power

Real estate: HEP Fivethe bus routes centered on the new stations will also bring greater convenience. The total expected eﬀect will be to reduce environmental impact* through a

trains use the latest energy-eﬃcient rolling stock, consuming around half of the

Proposing and carrying out the installation and operation of solar panels

electricity used by conventional railcars. Since September 2020, when the Tokyu

Hanshin Kensetsu and Chuo Densetsu propose and carry out plans to install and operate solar panels and other equipment at facilities inside

Group joined this project, the SDGs Trains have been operated collaboratively inand outside the Group based on their extensive experience in construction for both government and the private sector. Such business endeavors

eastern and western Japan and are eﬀectively 100% powered by renewable energy.

strengthen the Group s eﬀorts aimed at carbon neutrality and contribute to the expanded use of renewable energy throughout society.

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

42

Profile

Creating Real Value: The Processes

02
43

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Osaka Umeda Twin Towers South (left) and North (right)

Creating Real Value:
The Processes

Hankyu Hanshin Holdings Integrated Report 2023

CONTENTS
45

Sustainable Management

47

Human Capital̶Empowering Individuals

56

Urban Transportation

53

Task Force on Climate-related
Financial Disclosures (TCFD)

59

Real Estate

64Entertainment

67

Information and Communication
Technology

69

Travel71

International Transportation

56

Business Strategy

Hankyu Hanshin Holdings Integrated Report 2023

44

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Sustainable Management
The Group formulated a Sustainability Declaration in 2020 as the basis for working toward sustainable growth and we are
now accelerating our ESG-related initiatives. Our goals are to resolve societal issues through our business activities, enhance
corporate value sustainably, and ultimately achieve sustainability in society.

For over a hundred years, we have sought to cultivate communities and enrich lives. Leveraging this experience, we
commit ourselves to addressing social and environmental challenges and working toward a sustainable future, one thatoﬀers a fulﬁlling, joyful life to all and inspires the next generation to dream with hope.

Safe, reliableinfrastructure

Provide railways and otherinfrastructure that are safe anddisaster-resilient. Ensure thatanyone can safely access ourfacilities and services.

Thriving
communities

Help build sustainablecommunities with rich naturaland cultural heritage, making
great places to live in, work in,and visit.

Related elds

Project themes(composition details to the right), will meet twice each ﬁscal year,
outside environment (government, investor, competitor trends,etc.), ESG evaluation bodiesʼ rating situation, and other factors as
they formulate policies related to the sustainable management
priority issues, verify the progress of associated initiatives, anddeliberate and decide on items to be reﬂected in theMedium-Term Management Plan.
The committeeʼs deliberations are then referred to the GroupManagement Committee and it also reports to the Board of
Directors and accepts their oversight. In this way, we are promoting
sustainable management and incorporating it into the Groupʼsoverall management system.

S

Socia l① Eliminate accidents and improve safety at railways and commercial facilities② Promote actions to prevent/reduce accidents and respond promptly and properly
to accidents if they occur③ Establish safe and comfortable facilities and services that satisfy the needs of adiversity of people

Promote reﬁned and inspired
lifestyle solutions for a better
tomorrow.

Provide an inclusive workplacethat values diversity and taps
into individual talent. Cultivate
tomorrowʼs leaders for society.

Environmental
protection
Conduct eco activities that
contribute to a carbon-neutral
world and a circular economy.

Robustgovernance
Act honestly and in good faith,
as stakeholders expect us todo.

Refer/Report(important issues)

Corporate Sustainability Committee
Hankyu Hanshin Holdings Group CEO
Hankyu Hanshin Holdings representative directors,
executive oﬃcer in charge of the Personnel andGeneral Aﬀairs Div., executive oﬃcer in charge of theGroup Planning Div., and others nominated by thecommittee chair・Chair:・Members:

・Secretariat: Corporate Sustainability Dept. of the Personnel andGeneral Aﬀairs Div. (supervisory role) and the
Corporate Communication Dept. and Management
Planning Dept. of the Group Planning Div.

Propose policies

Implement/Report

Group companies

The Corporate Sustainability Department, which is the supervising secretariat under the Corporate Sustainability Committee, collaborates with
the Corporate Planning Division and the individual business divisions to apply the PDCA cycle in an eﬀort to enhance sustainable management.

S

Socia l① Develop a good living environment (providing good residences, creating green
spaces and public spaces, establishing cultural and educational facilities, etc.)② Develop and expand commercial/business areas where people communicate witheach other③ Create a line-side environment that makes it easier for women to work and raisechildren④ Promote measures to extend the healthy lifespan of the elderly⑤ Oﬀer services that satisfy the needs of foreign visitors/residents⑥ Enhance collaboration and partnerships with universities, research institutions,ventures, local communities, etc.

●

●

S

Socia l① Propose products/services that help realize a lifestyle in harmony with nature② Propose products/services that lead to revitalization and promotion of local
communities and cultures③ Propose products/services that respond to diverse values and create comfort andexcitement④ Propose products/services for young people who will lead the next generation⑤ Create and disseminate cultures through sports and entertainments⑥ Improve existing services and create new businesses by utilizing ICT innovation●

S

Socia l① Improve employee satisfaction and create a more positive workplace② Promote health and productivity management③ Promote diversity and inclusion④ Respect human rights and prevent harassment⑤ Cultivate tomorrowʼs leaders

Environment

A

Analysis of societal trends related tosustainability

Safe, reliable

Group Companies

PIs

Environmental

Corporate
Sustainability
Committee

D

C Committee (September)Conﬁrms the results of non-ﬁnancial
KPIs in the previous ﬁscal year anddeliberates and decides on issues thatshould be reﬂected in the
management plan of the entire Group.

C

Target value

FY2023 result

Scope

Number of culpable incidents inrailway operations business

Maintain at zero

Hankyu Corporation, Hanshin Electric Railway,
Kita-Osaka Kyuko Railway, and Nose Electric
Railway

Employee satisfaction

Always better than in previous survey

Conducted once every two years by Hankyu
Hanshin Holdings and the six major companies*.

Percentage of women in
management positions❺ protection

D Group Companies
Implements speciﬁc initiatives toachieve non-ﬁnancial KPIs in lightof the plans and action plan
decided in March.

PIs

Non- nancial❶ infrastructure

A

Following the deliberations and decisions madeby the committee in September, considers
reﬂecting them in the action plans of each corebusiness and reviewing action plans andnon-ﬁnancial KPIs.

Formulation of policies andconﬁrmation of plans based on theabove

Empowering① Cut greenhouse gas (CO₂) emissions② Improve energy eﬃciency (promote energy saving)③ Use more renewable energy (e.g. solar)④ Aim for more eco-friendly buildings (green buildings)⑤ Produce less waste and recycle more・Following the committee meeting in February,
the Board of Directors decides on a plan after
deliberations at the Group Management
Meeting in March.

Evaluation and analysis of eﬀorts todisclose ESG information by theGroup❹ individualsE・Conﬁrms plans for the next ﬁscal year andissues for achieving non-ﬁnancial KPIs.

Conﬁrmation of the progress of
initiatives related to important
themesGroup-wide non- nancial

P

P Committee (February)

Issues to be reported anddeliberated on by the Corporate
Sustainability Committee

Priority issues

Empowering
individuals

Refer/Report(important issues)

Oversight■ The PDCA Cycle Applicable to Sustainable Management●

Life designs for
tomorrow

Group Management
Committee

in September and February. The committee will consider the

Topics factored into
Medium-Term Management Plan

Create a future grounded in Safety and Comfort, and a futurecolored by Dreams and Excitement.

Priority issues (materiality) and policies

Board of Directors

From ﬁscal 2021, the Corporate Sustainability Committee

Sustainability Declaration
General Principles■ Sustainability Promotion Framework

Sustainable Management Promotion Framework

0 incidents

Reference
page
P58

3.57

(actual ﬁgures for FY2022)

Improve to around 10% (FY2031)

Hankyu Hanshin Holdings and the six major
companies

Percentage of women among newhires
Speciﬁc health guidance
implementation rate

Always 30% or more

Hankyu Hanshin Holdings and the six major
companies

34.6%

60% or more (FY2026)

Hankyu Hanshin Holdings and the six major
companies

55.8%

Smoking prevalence

15% or less (FY2026)

Hankyu Hanshin Holdings and the six major
companies

18.7%

Paternity leave uptake rate

100% (FY2026)

Hankyu Hanshin Holdings and the six major
companies

94.8%

Rate of CO₂ emissions cuts
(Scope 1 and 2 equivalent)

FY2031: 46% reduction compared to FY2014
FY2051: Net zero

Hankyu Hanshin Holdings and its subsidiariesʼ
Japanese worksites

5.6%

41.3% reduction
compared to FY2014

P89

P91

*Six major companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin Express, and Hankyu Hanshin Hotels

G

Governance① Promote eﬀective and transparent corporate governance② Ensure compliance and prevent corruption③ Enhance risk management, including climate change④ Pay attention to opinions of stakeholders in doing business

Non- nancial

PIs for each core businessIn order to address the six priority issues (materiality), we have identiﬁed non-ﬁnancial KPIs for each core business and are engaged in
improvement eﬀorts.

*The SDG icon that is placed ﬁrst is the most relevant to each priority issue.
The Process of Determining Materiality
Our Board of Directors identiﬁed the Group s priority issues (materiality) based on interviews with each business division, external experts, and others, taking
into consideration the societal issues facing the world today (outlined by the SDGs, SASB Standard, etc.) that the Group should address. For details, see:https://www.hankyu-hanshin.co.jp/sustainability/materiality/#theme (Japanese only)

45

Hankyu Hanshin Holdings Integrated Report 2023

Urban Transportation

Real EstateEntertainment

Information andCommunication Technology

TravelInternational
Transportation

Barrier-free accessibility rate,
ratio of energy-eﬃcientrolling stock, etc.

Compliance rate of large buildings with BCP,
environmental certiﬁcation acquisition rate,
adoption rate of ZEH construction methods, etc.

Number of baseball classes,
number of children and students
in attendance at the theater, etc.

Number of municipalities with which disasterprevention agreements have been concluded,
status of information security certiﬁcations, etc.

Satisfaction of tour participants,
number of cooperating
municipalities, etc.

Improvement of the BCP
maintenance rate, lowering of thecustoms clearance error rate, etc.

See page 58 for details

See pages 62‒63 for details

See page 66 for details

See page 68 for details

See page 70 for details

See page 72 for details

Hankyu Hanshin Holdings Integrated Report 2023

46

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Human Capital—Empowering Individuals
To achieve our Long-Term Vision, we need to increase the appeal of our line-side areas and content, expand our fields ofbusiness, and work together to push Group transformation in unison. An essential factor in that effort is the full engagementof every employee and the driving force that can become. We thus aim to make significant improvements in the working

Initiatives Based on Each Strategy

environment within the Group to enhance the workplace, ensuring that it is both enjoyable and enriching, and that it allows
people of different characters and abilities to make full use of their unique strengths. We want to foster a vibrant, interactive

Strategy

culture that values everyone’s point of view.

To push Group transformation as one, it is necessary to have a highly engaged workforce—1

people who are capable of responding flexibly to changes in the external environment, muchas people adapted their behavior to the pandemic. We require people who enjoy change
and can act autonomously to grow the organization.

Our Approach

Specific Measures

Achieving our Long-Term Vision requires a human resources strategy that lines up with that vision, which means not relying on the highly
homogeneous pool of graduates fresh from university, but bringing greater diversity into the workforce. It means drawing out new, latent

Develop Highly
Engaged Personnel

makes it easy for empowering individuals.

FY2023 Actual record(difference from previous year)

Always better thanin previous survey

3.57 out of 5
(FY2022 actual record)

Turnover rate of employees who havejoined the company within the last 3 years

Assemble Diverse Talent
to Help Create New Value

3

―

25.4%

Average years of service―

19.6 years

Specific health guidance
implementation rate

60% or higher

55.8% (+6.5 pts)

Secure Personnel to Promote
and Implement DX in the Group

Smoking prevalence

15% or lower

18.7% (-1.6 pts)

―

0.55

Always 100%

100%

Number of trainees (total)―

21,253 employees

Training hours per employee―

11.13 hours

Frequency rate of lost-time
injuries

Continuous Rise in Corporate Value
Strategy2Strategy

Carry Out Group-Wide3

Transformation throughthe Long-Term Vision

Strategy

1

Conducted every other year (not conducted in FY2023)

Subjects taken from the results of health checkups in FY2022(individuals who completed Specific Health Guidance or thoseeligible for Specific Health Guidance)

Number of fatalities or injuries due to work-related accidents
per one million total actual working hours (one or more days
lost from work) excluding accidents involving a third party andcommuting accidents

Employee satisfaction survey
Secure Personnel to Promote and
Implement DX in the GroupThe Group has long conducted employee satisfaction

Employee satisfaction level: 3.57

surveys and aimed to improve employee satisfaction throughQuality maintenance and improvement

periodic monitoring (using the PDCA cycle). In the survey,● Proactively recruit

women, seniors,
people withdisabilities, foreign
workers, hires withcareer experience, etc.

Details

Note: Scope of coverage: Hankyu Hanshin Holdings and six major companies (Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu
Travel International, Hankyu Hanshin Express, Hankyu Hanshin Hotels)

Empowering Individuals
Assemble Diverse Talent toHelp Create New Value

Rate of participation in Companyrun human rights training● Recruit specialists from theexternal labor market● Upskill and reskill employees

the employee satisfaction level is calculated as the averagevalue for the four items listed in the“Outcomes”section in
the diagram to the right. The four items are considered to be

Outcomes

Develop Highly Engaged
Personnel

2Strategy

the outcomes or results of actions and were set to ascertain

Develop Highly Engaged Personnel

current conditions such as job, workplace, boss, and● Discover and develop latentabilities in employees

satisfaction, so that improvement measures can be set up● Implement job rotationand their effects verified. Considering the importance of

Human resources strategies linked to the Long-Term Vision (management strategy)

understanding

employeeengagement

groupwide,

we

decided to conduct surveys at 94 Group companies,
beginning in fiscal 2024, including consolidated subsidiaries
and some unconsolidated subsidiaries and affiliates.

3.35

Desire to contributeto the work

3.61

Work
situationcompany, which are possible factors affecting employee
Factors

1

Strategy• Human resource development
initiatives

Target (FY2026)

Non-financial KPIs
Employee satisfaction

Strategy• Elimination of harassment• Diverse work styles and workplaceenvironments• Promotion of health and productivity
management

abilities from employees and fostering them through a work environment of mutual cooperation between company and employee that

Our Human Resources Strategy• Employee satisfaction survey

Desire to contributeto the workplace

3.64

Desire to contributeto the company

3.69

Implementation of the Groupʼsmanagement philosophy in the workplace

Trust in thecompany

Promotion of diversity inthe workplace

Spread of thecompany message

Bossʼs management
Suﬃciency of personnel systems

Structure of the employee satisfaction survey
Note: These are results from the previous (fiscal 2022) survey (5-point scale);conducted at Hankyu Hanshin Holdings and its six major companies

47

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

48

Diverse work styles and workplace environments
The Group is setting up systems to enable diverse working styles
independent of time and place and is creating open-design
workplaces that are employee-friendly*. We are creating anenvironment that will allow employees to work ﬂexibly aroundtheir life events and continue working with peace of mind, while
fostering a workplace culture that raises productivity in which
active communication takes place that contributes to value
creation.
*Workplaces will vary according to the company, department, etc.

Telecommuting system●

Flextime system●

Staggered work hours●●

Creating Real Value:
The Foundations

Financial Section andCorporate Data

and Hankyu Hanshin REIT Investment Trust was awarded Bright 500

group-wide perspective, we plan to gradually increase the scope

employees out to get external training or to attend graduate

status̶each for being in the top 500 in their respective categories.

of job rotations in a systematic way that includes providing cross-school for an MBA, helping them acquire knowledge and develop*This system honors companies in two categories̶large enterprises and
SMEs̶for outstanding implementation of health and productivity
management, recognizing the top 500 companies in each category as
White 500 and Bright 500 enterprises, respectively.

business experience through internal transfers beyond each core.

personal connections.

《 Expert Professional Course 》

the GLOBIS University MBA program and assist with costs for

The Company set up a new training program in ﬁscal 2023̶another types of external training such as DX-related e-learning. We

Expert Professional Course̶to join the existing Basic Management

also cover the full cost of tuition for correspondence courses that

Course. This will enable us to develop the specialized personnel

lead to career advancement (with an upper limit).

2020

Category

2021

2022

2023

Large enterprise

5

8

10

11

Small and medium-sized enterprise

6

7

9

14

Total

11

15

19

25

Systems that enable diverse working styles independentof time and place●

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

In the area of self-development, we subsidize tuition to attend

needed to carry out our business strategy.

In addition, the Group is carrying out training aimed at

By providing new career options for our employees, thecultivating foresight and creativity through the New Value

Company hopes to elicit even better individual performance,

Creation Project Research. This unique project trains people toaiming to strengthen the Group s businesses and further augment

conceptualize and propose new value by using cutting-edge

our corporate performance.

technologies in the businesses we are in, based on seminars
given by experts in various ﬁelds complemented by discussion《 Extensive Training Programs 》

and research.

The Company has established a Basic Policy on Human Resource
Development, based on which we oﬀer many types of training

System that allows employees to take annual paid
leave in half-day or hourly increments
System of short working hours and short work days
that allows employees to balance childcare, nursing
care, or medical treatment with their professional lives

programs

each

year.

Such

programs

supportthecareeraspirations of all employees in a step-by-step manner. We also
support independent study by subsidizing self-development andLarge enterprise category(White 500)

Large enterprise category

study opportunities and correspondence courses. We send

Open-design workplaces that are employee-friendly
Basic Policy on Human Resource Development

Activity-Based Working (ABW) areas (private spaces
suitable for a single person to concentrate on workor conduct a web conference, free spaces suitable
for small group meetings, etc.)
Loosening of dress code

improvements and provide education. Striving to create an

periodicallyenvironment in which it is easy to seek consultation, we have set

individual

awareness and foster a culture of sustainable management.

up Harassment Consulting Oﬃces at the head oﬃce and at eachcompany, and provide training to improve the expertise of those

Health and Productivity Management

working in the oﬃces. We also provide human rights awarenesstraining for the president of each Group company annually, along

The Group carries out health and productivity management based onwith training regarding awareness of harassment and otherthe belief that happiness stems from the physical and mental healthhuman rights for new employees and employees promoted atof our employees and their families, which is also the cornerstone ofeach level.

a prosperous future for the Group. In January 2023, we establishedthe Health and Productivity Management Promotion Committee,
chaired by the Group CEO, to hold group-wide discussions and49

Personnel Training

promote health and productivity management in a more strategic《 Systematic Job Rotation 》

way.

We value and use job rotation in the Group s six core businesses,

In addition, for the Company and its six major companies andprimarily within each core separately to train large numbers ofother Group companies, a system has been set up that establishes

employees. This practice gives employees familiarity with thethe president of each company as the person ultimately responsible

business and helps them develop knowledge that will give us afor promoting health and productivity management and initiatingcompetitive edge in the industry.

health measures. As a result, 25 companies (six more than the

From the perspective of the management of the entire Group,

previous year) were recognized as Certiﬁed Health & Productivity

however, it is essential to have personnel who are familiar withManagement Outstanding Organizations in 2023*, of which Hankyu

many diﬀerent businesses and can guide the Group in a leadership

Corporation and ITEC Hankyu Hanshin received White 500 statusrole. To develop that kind of expertise over the long term from a

Hankyu Hanshin Holdings Integrated Report 2023

Stratiﬁed training• Training for the Groupʼs new
directors and auditors• In-house business school• New manager training• Manager promotion training• Evaluator training
etc.
• Marketing/Management strategy
training• Promotion training• Follow-up training for new
employee• Training for new employees etc.

(3) Self-development
supportObjective-based training

Business schools
such asGLOBIS University

Congratulatory money systemfor qualiﬁcation winners

measures, and are also used to make work environment

and what they ought to do to support it. We want them to(2) Training (Oﬀ-JT)

Correspondence
education support system

employee to think about what sustainable management entails(1) Training
in theworkplace

Learning support
systemcompany to formulate a plan for harassment prevention

Seminar for employees returningfrom childcare leaveenvironment survey. The results of the questionnaire help eachthat contribute to sustainable management. We want each

Outline of Training System

Dispatch to MBA
graduate schooland promoting health and productivity management̶all items

heightenlearning

External dispatch training

Once every two years, we conduct a group-wide worktopreconceptions● Engages with others sincerely and with humility and is constantly

New Value Creation
Project Research

Elimination of harassment

ideas

Encourage the creation of new value from a long-term perspective

has the drive to actualize that vision● Has high aspirations and strong beliefs and takes on challenges without

Our Basic Policy on Human Resource Development/Types of Personnel Neededin the workplace, encouraging more men to take childcare leave,

those

3

● Envisions the future of the entire Group from an optimal perspective andSmall and medium-sized enterprise
category

our annual employee goals̶goals such as empowering womenverbalize

2

Clarify the types of personnel needed and support their training in
the workplace

Expanded digital literacy training

Starting in ﬁscal 2024, sustainability goals will be newly added to

The Ideal Employee of Hankyu Hanshin Holdings

Support proactive career formation and skills development

Goal-setting interview

Sustainability goals newly added to employee
goal-setting interview sheet

Small and medium-sized enterprise
category (Bright 500)

Types of Personnel Needed

1Targets●

Free address system

AssistantManagerial
manager
staﬀ
class

●

Non-managerial
employees●

Expandeddigital-related
supportDiagram of Our Overall Training System

Hankyu Hanshin Holdings Integrated Report 2023

50

Strategy

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

To meet the challenge of the SDGs and keep providing value of many kinds requires not only2

human resources skilled in the proper execution of prescribed tasks but diverse talent̶
people who can bring change to the organization from new perspectives. That diversity canCreating Real Value:
The Foundations

Financial Section andCorporate Data

In a rapidly changing business climate that includes labor shortages and shifting consumer

3

Strategy

Creating Real Value:
The Processes

needs and values, it is essential to respond quickly and utilize data and digital technologies
to achieve transformation (creating value and improving productivity). To do this, the Grouptake the form of skills, behavioral characteristics, career experience, high-productivity workneeds personnel who can promote and implement DX.

styles, etc.

Speci c Measures

Assemble Diverse
Talent to Help Create
New Value• Empowering women in the workplace• Encouraging male employees to participate
in childcare

Non-ﬁnancial KPIs

Target (FY2026)

FY2023 Actual record(diﬀerence from previous year)

Percentage of women among new
hires

Always 30% or more

Percentage of women in
management positions• Supporting employment ofpeople with disabilities

Secure Personnel toPromote and Implement
D in the GroupSpeci c Measures• Creation of a DX promotion system• Hiring and training of DX personnel

Non-ﬁnancial KPIs

Target (FY2026)

FY2023 Actual record(diﬀerence from previous year)

34.6% (-2.2 pts)

DX education expenditure

Always about 15%

19%

Scope of coverage: Hankyu Hanshin Holdings

Improve to around 10%(FY2031)

5.6% (+0.5 pts)

Percentage of employees
completing DX online education

Always 100%

100%

DX education expenditures as a percentage ofhuman resource development expenditures(Scope of coverage: Hankyu Hanshin Holdings)

―

71.5%

Ratio of actual wages paid to female employees vs.
male employees(Scope of coverage: Hankyu Hanshin Holdings)

94.8% (+7.2 pts)

Number of employees who took childcare leave or
leave for childcare purposes in FY2023/Number of
employees whose spouses gave birth in FY2023

Wage gap between men and
women

100%

Paternity leave uptake rate

Details

Employment rate of people withdisabilities

Always at or above statutory
employment rate

3.05% (+0.09 pts)

Scope of coverage: 19 companies designated as
special subsidiaries

Ratio of new hires with career
experience―

27.5% (+17.9 pts)

Percentage of new hires in FY2023 with career
experience

Ratio of foreign employees(Percentage of increase in foreign
employees over the previous year)―

0.53% (+0.01 pts)

Note: Scope of coverage: Hankyu Hanshin Holdings
and six major companies (Hankyu Corporation,
Hanshin Electric Railway, Hankyu Hanshin
Properties, Hankyu Travel International, Hankyu
Hanshin Express, and Hankyu Hanshin Hotels),
except as described in details.

Creation of a D

promotion system

In ﬁscal 2023, we began providing all employees with extensive

In April 2022, we established the DX Project Promotion

digital training, starting with basic digital education using an

Department. The department will be building a common platform
for the entire Group, while personnel with expertise in theoperations of our core businesses will be actively incorporating
digital technologies, to implement a digital transformation
throughout the Group.

e-learning system. Additionally, we introduced a new job rotation
system, dubbed the DX Human Resource Development Program.
The program works by taking a certain number of young
employees positioned in core businesses̶generally in their thirdyear with the Company̶and transfers them to Itec Hankyu
Hanshin to pick up skills, then sends them back to their original
departments after about two years. During their time with theHiring and training of D

company, they gain experience in programming, systems

personnel

The Hankyu Hanshin Holdings Group has strengths in information• Approximately 85.5% of our total 1,300 employees are male (including those temporarily
dispatched to other companies), quite a high percentage.
• Although the criteria for promotion are the same for men and women, the ratio of women is low
in the age bracket corresponding to management positions, likely accounting for the diﬀerence.

Details

and communications and has developed specialized talentworking at the forefront of IT. In addition to such talent, in ﬁscal
2023 we began hiring new personnel with career experience inorder to promote DX throughout the Group, incorporating theirdevelopment, and other skills. The goal of the program is todevelop personnel who have insight into both information
technology and business operations. We later plan to use theprogram to reskill more seasoned employees in the focused areaof DX.

knowledge and perspectives.

established action plans based on the Act on Promotion of

Given that the rate of male employees taking childcare leave is

Women s Participation and Advancement in the Workplace, andalready quite high, to make their participation in childrearing

continue to be proactive hirers of women. In addition, we strive

even more eﬀective, in April 2023 a policy was implemented

to maintain a working environment where all employees̶

aimed at extending the number of days taken for childcare leave

regardless of gender̶can seek to fulﬁll their potential. To this(including incentives for taking long-term leave and granting

end, we encourage career development and implement policies

special paid leave). We have also created a leaﬂet that explains

to help maintain a balance between work and home life.

the Company s childcare support system at a glance, and are

These initiatives earned Hankyu Hanshin Holdings the honor of

encouraging employees to take advantage of the diﬀerent

being selected as a constituent of the MSCI Japan Empoweringsystems. These eﬀorts will help build a workplace culture that

Women (WIN) Select Index, which comprises leading companies

facilitates participation in childcare by male employees.

in terms of gender diversity, for the fourth consecutive year since2020. We will continue to promote policies that enable all

Supporting employment of people with disabilities

employees to fully express their individuality and show their

The Group hires people with disabilities primarily through ourabilities, based on: ① support for balancing work and life events,

special subsidiary, Assist Hankyu Hanshin, to create a supportive② support for career development, and ③ promotion ofworking environment for people with disabilities and actively

understanding in the workplace.

create work opportunities for people with disabilities in the
future.

Our Approach to Digital Education

Objectives of the D Human Resource Development Program

We will provide educational opportunities through both training (Oﬀ-JT) andself-development support aimed at developing personnel capable of promoting
value creation in each business, improving the productivity of each Group company,
and leading their respective organizations.

❶ The acquisition of practical, real-world technical skills
through Engineer/Programmer developmental training

Objective

Means
D
Business and businessmodel transformation
for customer-centric
value creation• Philosophy of digital transformation
seminars• New Value Creation Project Research• Problem-solving training using AI• E-learning for acquiring basic DX
knowledge

Higheradded
value

Digitalization
Digitalizing of individual
operations andmanufacturing
processes• E-learning for acquiring the ability
to read and analyze numbers• Assigning employees to takeproductivity improvement
training using Oﬃce

Cost
reductions

Digitization
Conversion of analog
and physical data into
digital data

• Productivity improvement andinformation security training
using IT tools

New
value
creation❷ The acquisition of the fundamentals for becoming future
Systems Architects (personnel who can design systems
related to DX and digital business)

Training Programs

Basic Digital Education at the Company

Learning support system(strengthened support for DX and IT ﬁelds)

Encouraging male employees to participate inchildcare

Value creation

Hankyu Hanshin Holdings and the six major companies have

Improved productivity

Empowering women in the workplace

Personnel Title

Personnel Roles

Producers

Leaders (personnel including CDOs) to lead theimplementation of DX and achieve digital businessBusiness designers

Personnel responsible for planning, draftingand promoting DX and digital business❷ Systems architects

Personnel who can design systems
related to DX and digital business

Data scientists/
AI engineers

Personnel with expertise in digital technologies(AI, IoT, etc.) and data analysis related to DX

UX designers

Personnel in charge of user interface design
for systems related to DX and digital businessEngineers/❶ Programmers

Personnel responsible for the implementation of digitalsystems and infrastructure-building, plus the above

Specialized digital education at Itec Hankyu Hanshin*MSCI https://www.msci.com/our-solutions/esg-investing

51

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

52

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Task Force on Climate-related Financial Disclosures (TCFD)In May 2021, our Group announced its support for the Task Force on Climate-related Financial Disclosures (TCFD). Since then,we have proceeded with information disclosure in line with the various principles related to governance, strategy, risk
management, and metrics and targets. Under our Long-Term Vision announced in May 2022, we adopted a new CO₂ emissions
reduction target of net zero for ﬁscal 2051 as a means of achieving the 1.5°
C temperature rise scenario set by the Paris
Agreement. We also updated our target for ﬁscal 2031, which represents the halfway point, to a 46% reduction in CO₂emissions from ﬁscal 2014 levels. Going forward, we will continue to steadily promote the transition to a carbon-neutral society
by incorporating a response to climate change into our business strategies and by enhancing the resilience of our businesses.

Railway operations
Impacts on the railway operation business and future response
Under the 1.5°
C temperature-rise scenarios, we were able to
conﬁrm that environmental regulations should be tightened due topolicies and that the impact of carbon taxes would increase. We
will continue to reduce the impact of these by reducing energy
consumption

byupgradingtoenergy-eﬃcientrailwaycars;

introducing LED lighting; and working to utilize renewable energy byinstalling solar panels at stations.

1 Governance

Under the 4°
C temperature-rise scenario, it was conﬁrmed thatthe potential for greater physical damage would be exacerbated by

To promote environmental, social, and governance (ESG)

progress of initiatives, and deliberates and decides on matters

responses, which includes a response to climate change,that should be reﬂected in the Medium-Term Management Plan.

throughout the Group, the Corporate Sustainability Committee

In addition, the deliberations by the committee are submitted

meets in September and February of each year under theto a meeting of the Group Management Committee, which ischairmanship of the Group CEO. The committee formulates aattended by all representative directors and representatives ofpolicy on the priority issues of sustainable management of theeach core business, and are reported to the Board of Directors.

Group, with reference to the external environment relevant toIn this way, we are promoting sustainable management bysustainability (administrative, investors, and other companies)

incorporating it into the management system of the entire Groupand ESG evaluation agencies. In addition, the Group conﬁrms the(see page 46 for details).

Category
Transition risks

Physical risks

Carbon tax and costs

Abnormal weather(intensiﬁcation of natural disasters)

Changes in rainfall and other weather patterns

natural disasters that are more intense in scale and frequency. In
this trial calculation, we selected the Muko River, which would be
expected to cause the largest amount of damage on our line-side
areas, and calculated the likely amount of damage. On the other
hand, it was conﬁrmed that the damage could be greatly reducedby evacuating trains when the Muko River ﬂoods. We will continue
to strive for robust business operations that can avoid long-termsuspensions through various safety investments and steadily
implementing train evacuation plans.

Eventualities That Would Impact Business
Requirement to pay carbon taxes
Flooding from Muko Riverwould damage our assets
and reduce ridershiprevenue

Impact on operating proﬁt*¹(¥ billion)
1.5−‐2.7*³

No train evacuations

‐3.9

‐1.0

(Amount saved by
avoiding train evacuations)

(3.4)

(0.9)

Train evacuation

‐0.4

‐0.1

‐0.4

‐0.2

Higher frequency of service cancellations due to torrential rain*⁴*1 None of the ﬁgures account for the possibility of passing on cost increases to passengers.
*2 As there are no parameters for physical risk for the 1.5°
C scenario, we have assumed the same impact as under the 2°
C scenario.
*3 For the IEAʼs 1.5℃ scenario, impacts are calculated on the basis of 140$/t-CO₂, with a dollar worth 134 yen (the rate at the end of March 2023).
*4 Increase in torrential rain is averaged over a period from 2076 to 2095.

2 Strategy
Identifying risks and opportunities
In considering responses to climate change issues, the Group identiﬁed risks and opportunities that have the potential to inﬂuence theGroupʼs core business, especially in railway operations and real estate, which are predicted to be particularly aﬀected by climate change.

ExamplesExamples of Both Tangible and Intangible Responses to Physical Risks

On the tangible side, we are implementing countermeasures such as preventing collapses of sloped trackside embankments and falling rocks,
strengthening drainage functions, and increasing the number of rain gauges in areas where risk of landslides along the tracks is high. On theMain Items Identiﬁed

Risk

Opportunity

Timeframe

The imposition of carbon taxes, changes to the energy mix, and other measures will lead to an increase in power costs.

Medium tolong term

Ultra-large-scale typhoons and increasingly heavy rainfalls increase the potential for damage due to ﬂooding of garages,
stations underground, or electrical equipment, and the destruction of embankments may lead to the suspension ofrailway services.

Short tolong termRealestate

The cost of construction and renovation of buildings will increase due to soaring prices of building materials from theimposition of carbon taxes and the tightening of regulations on Net Zero Energy Buildings (ZEB) and Net Zero Energy
Houses (ZEH).

Short tomedium term

Railway
operations

The price advantage of energy eﬃcient railways is expected to increase, and customers can be expected to shift to railtransportation.

RealestateWe can strengthen our competitiveness by responding to emerging needs for disaster-resilient buildings and housingwith high environmental performance.

Railway
operations

Medium tolong term

For details of the risks and opportunities identiﬁed, please visit our website (https://www.hankyu-hanshin.co.jp/sustainability/tcfd/)(Japanese only).

intangible side, in order to avoid ﬂooding damage to garages and vehicles due to ﬂooding of rivers, we are promoting ﬂood countermeasures
such as train evacuation plans. For example, for the Muko River, where the ﬁnancial impact was estimated in this scenario, no ﬂoods haveoccurred in downstream areas such as the Nishinomiya Marshaling Yard area for the past 100 years. In preparation for an expectedlarge-magnitude impact in the event of an actual occurrence, we have formulated a plan to evacuate the trains in Hankyu Corporation s
Nishinomiya Marshaling Yard to a location that would not be aﬀected by ﬂooding should disaster-level torrential rain* occur. In this way, we areworking to reduce damage by promoting safety measures against climate change risks from both a tangible and an intangible perspective.
*Assuming expected rainfall (once in 100 years) on hazard maps created by municipalities, etc.

Real estate
Impact on our real estate business and future responses
Under the 1.5°
C temperature-rise scenario, it is conﬁrmed that
construction costs would increase due to the increased prices forconstruction material arising from the introduction of the carbon

Scenario analysis and estimation of nancial impacts
We conducted scenario analyses of those that are expected totax, the adoption of ZEB/ZEH construction methods, and theInternal data: CO₂ emissions forecasts, natural disasterrisk response plan, ZEB and ZEH
construction plans, etc.

have a particularly large impact on the railway operation
business and real estate business in ﬁscal 2031, especially for
identiﬁed risks and opportunities. Speciﬁcally, we estimated theExternal data: Carbon tax forecasts, rainfall forecasts,

from reports* by the International Energy
Agency (IEA), the Ministry of theEnvironment, and the Japan
Meteorological Agency

ﬁnancial impact on business of the 1.5°
C temperature-rise
scenario, under which carbon-neutral policies are expected to bestrengthened, and the 4°
C temperature-rise scenario, underwhich physical risks are expected to materialize. The internal andexternal data used for the analyses are shown on the right.

53

Hankyu Hanshin Holdings Integrated Report 2023

*Transition risks: IEA World Energy Outlook 2022 (page 465: Appendix
B.2 CO₂ Prices), etc.
Physical risks:

IPCC RCP 8.5 and RCP 2.6, Japan Meteorological
Agency (JMA) Climate Change in Japan 2020̶
Observations, Predictions and Evaluation Reports on the
Atmosphere, Land and Ocean, etc.

tightening of environmental regulations. Of these, for ZEH
construction methods, we will reduce the impact on operating
proﬁt by utilizing subsidies from the government and other sources(tax incentives for ZEH housing and the like having improved
customer opinion of such housing), incorporating the increase incosts resulting from the adoption of ZEH construction methods into
proﬁt and expenditures from the stage of land procurement andpassing it on through an appropriate selling price. We will reducethe impact on operating proﬁt. On the other hand, it is diﬃcult topass on the cost of ZEB construction methods in rent prices, andthe possibility exists that an impact equivalent to depreciation

would occur on operating proﬁt. We will strive to reduce the impact
as much as possible while utilizing government subsidies.
We have conﬁrmed that the ﬁnancial impact on the real estatebusiness under the 4°
C scenario would be limited. Flood damage inthe Umeda area is assumed as a physical risk, but we have alreadycompleted countermeasures against inland water ﬂooding. This
includes the installation of ﬂood barriers on real estate properties
and the preparation of disaster response manuals. River ﬂooding isassumed to have a very low probability of occurrence*.
In the future, we will continue to adopt metrics such as thebusiness continuity plan (BCP) compliance rate, the green building
certiﬁcation acquisition rate, and the adoption rate for ZEH
construction methods in new condominium development, mainly
for large buildings that are in development, and will promote
initiatives to respond to any scenario.

*Flooding of the Umeda area from the Yodo River is assumed only when the hazard map assumes the largest amount of rainfall (once in 1,000 years). However, theprobability of occurrence is assumed to be extremely low even under the 4°
C temperature-rise scenario.

Hankyu Hanshin Holdings Integrated Report 2023

54

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Business Strategy

Category

Carbon tax and costs

Impact on operating proﬁt*¹(¥ billion)

Eventualities That Would Impact Business

1.5°
C

Rising prices of construction materials due to introduction of a carbon tax−‐2.3*²Requirement to pay carbon taxes−‐0.4*²

Increase in construction costs due to ZEB construction methods(equivalent to depreciation cost)

−

‐0.5

Urban Transportation*1 None of the ﬁgures account for the possibility of passing on cost increases to passengers.
*2 Estimated based on the IEA s 1.5°
C temperature-rise scenario estimates (same as railway operation business)

We remain focused on enhancing thevalue along our line-side areas byproviding safe, secure, and comfortabletransportation services.

3 Risk management

Business Environment

Fiscal 2023 Review of Operations

We are responding to changes to demand formovement and raising expectations for the safe,
secure, and comfortable services we provide.

As well as the lingering eﬀects of the COVID-19 pandemic,

Transition
risks

Response to greenhouse gas
emissions regulations such as
ZEB/ZEH construction methods, anddissemination of new technologies

Our Group has established a dedicated risk management oﬃce inexamine not only the risks for each item, such as natural

the Personnel and General Aﬀairs Division to oversee group-wide

disasters, that directly aﬀect business operations, but also risks

risk management and conduct annual risk assessments. The

that occur in the value chain, such as soaring energy and material

survey covers risks related to climate change (natural disasters,

prices. We then conduct risk assessments in relation to the timeetc.), accidents, information management, legal compliance, andhorizon (short, medium, and long terms). We also monitor theother organizational operations. The oﬃce is responsible forstatus of countermeasures several times a year.

identifying and analyzing pan-organizational risks, while business

The Corporate Sustainability Committee also deliberates on

divisions do the same for risks inherent to their own division andclimate change-related risks and their impact on business. The

establishes appropriate countermeasures. The status of thesecontents of the assessment are reﬂected in risk management forrisks is analyzed, and risk countermeasures are reported to thethe entire Group, where it is used to identify priority risks during

Board of Directors every year.

risk assessments.

With regard to climate change-related risks, we analyze andsustainable management and have adopted CO₂ emissions reduction
targets as a non-ﬁnancial KPI common to our Group. In May 2022, we
adopted a new goal of net zero CO₂ emissions by ﬁscal 2051, and as
an interim goal, we aim to reduce CO₂ emissions by 46% from the ﬁscal
2014 level by ﬁscal 2031. While looking at ﬁnancial soundness andinvestment eﬀects, we are steadily promoting energy eﬃciency, and wewill consider energy generation (introduction of renewable energy
power generation equipment, etc.) based on trends in technologicalinnovation and business proﬁtability (see page 40 for details).
In line with the above policy, each business has establishedindicators for properly managing non-ﬁnancial action plans andprogress, including responses to climate change. In both ourLong-Term Vision and Medium-Term Management Plan, we clarify the
speciﬁc ways in which we are working on the SDGs ad carbon
neutrality by 2050. Furthermore, with the aim of encouraging
investment aimed at reducing CO₂, in ﬁscal 2024 we introduced
internal carbon pricing* (¥5,000/t-CO₂). We will continue to actively
promote initiatives contributing to the emergence of a society
committed to carbon neutrality.

Railway
operations
Real estate■ Revenue and Pro t

Umeda district, continue to be highly popular and the population

Operating revenue (left axis)

is increasing in those areas.

(¥ billion)
250

However, the COVID-19 pandemic has brought changes tomovement demand and we need to respond to such changes.
along with further increasing productivity by means such as

150

improving rider services to respond to diversifying needs, revising100

train schedules to take demand into account, and employing

50*A method whereby companies set their own carbon prices, which helps themto grasp the future ﬁnancial impact of reducing CO₂ emissions or if carbon
taxes were to be introduced, carry out proper decision-making when judging
investments, and incentivize the promotion of energy eﬃciency.

■ Our Group s CO Emissions Reduction Targets
Urban transportation

Real estate*²

Entertainment

International transportation（t-CO₂）700,000
600,000
500,000
400,000

46

616,365

compared to
FY2014

361,832

300,000
200,000
100,000
0

reduction

safety and our disaster mitigation performance, and to reduce

Net
zero

40

where a certain number of passengers can be expected,

3020FY2014FY2023
FY2031FY2051Results
Results
Targets
Targets*1 Scope 1 and 2 equivalent*2 Due to the merger in ﬁscal 2023 of the real estate business and the hotelbusiness, for this data the hotel business is recorded under the real estatebusiness, and this has also been applied to past years ﬁgures.

PIs: BCP compliance rate for large buildings in the Osaka-Umeda area, green building certiﬁcation rate for large oﬃce and commercial
buildings, rate of adoption of ZEH construction methods for new condominiums for leasing or sale in Japan, etc. (See pages 62‒63
for details.)

2021
Results

40.7
7.9

0
−10
2020
Results■ Transportation revenue (tier 1

0

2022
Results

2023
2024
Results (Estimate)
Other
Advertising

0.7
0.8 26.5
0.7
0.8 14.7

10

society.

15

−50

0.9
2.7
1.3
1.9

50

332,83746
reduction

‒5.1

‒4.2

‒6.8

2021
Results

2022
Results

0.6
1.0
0.7

Commuter pass

35.7

2023
2024
Results (Estimate)tier 2)(¥ million)

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024 (estimate)

30,391

31,29931,54932,272

32,62833,19833,456

34,11928,09328,65429,90031,65360,74961,63092,92960,91092,45962,92095,19262,72095,34863,137
96,33563,05996,516

61,88796,00740,982
69,07545,422
74,07754,90884,809

100%
80%
60%

94,580FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023(¥ million)（百万円）
FY2024 (estimate)

10,74011,008

11,107

11,372

11,563

11,797

12,024

12,327

10,476

10,628

11,096

11,69819,66920,26031,26920,286
31,394

21,03532,407

21,13632,699FY2013 transportation revenue (total) = 100%
120%

62,926FY201330,410

Total

(FY)

Note 1: The anticipated full-year results for fiscal 2024 are based on information
announced on May 15, 2023.
Note 2: Due to a reorganization of the advertising business, advertising is included in therailway category from ﬁscal 2021 onward.

Hanshin Electric Railway

Commuter pass

Retailing
Automobile
Railway

FY2013

91,141

Total

(FY)

0.7
1.0
1.5

Hankyu Corporation
Non-commuter pass

60

30

5.6

(¥ billion)

energy used per person is extremely low, so in urban areas

31.3

22.4

(with separate head oﬃce expenses, etc.)

eﬃcient vehicles. Trains are a mode of transport for which the(¥ billion)
75

45

Operating proﬁt by type of business

CO₂ emissions through measures such as introducing energy-

can help with saving energy and decarbonizing throughout

Other

40.1

2020
Results

promoting train use as the core of public transportation networks

TravelInformation and Communication Technology

156.9

205.1

185.6

161.6

0

respond to this, there is a need to further enhance transportation

Operating proﬁt (right axis)

227.2

200

Speciﬁcally, we must focus on creating new movement demand,transportation, the SDGs, and carbon neutrality are growing. To

Helping make rental facilities carbon neutral (energy eﬃciency/generation and procurement of renewable energy)
Promoting ZEB and ZEH construction methods for buildings and housing under development

Hankyu Hanshin Holdings Integrated Report 2023

increased operating revenue and proﬁt overall.

decline, the Group s line-side areas, especially in the Osaka-Non-commuter pass55

operation and automobile businesses and other factors, we saw

While the overall population in the Kansai region is on theAlso, public awareness and expectations about safety in

Upgrading to energy-eﬃcient rolling stock, installing solar power generation on factory roofs and station buildings, and introducing
regenerative power storage devices
Promoting a response to natural disasters based on business continuity plan (BCP)
Non- nancial PIs: VVVF train* conversion rate, LED conversion rate, zero long service downtime due to natural disaster, etc.
(See page 58 for details.)*Railway cars whose motor voltage and frequency can be controlled with high environmental eﬃciency and no waste.

Non- nancial

due to a certain amount of recovery in users in the railway

new technologies to make operations more eﬃcient.

4 Metrics and targets
We have adopted Environmental protection as a priority issue fortransportation costs have risen due to soaring energy prices, but

103%

107%

21,63833,43622,03034,054

Hankyu Corporation
108%

100%

103%

100%

102%

101%

104%

105%

2013

2014

2015

2016

2017

110%
106%
2018

112%
106%
2019

21,66533,993

13,72524,202

15,39726,026

19,36530,462

22,31134,010Hanshin Electric Railway
112%
105%
2020

80%
76%
2021

86%
81%
2022

100％
93%
2023

112％
104%
2024 (FY)(Estimate)
Note 1: The anticipated full-year results for ﬁscal 2024 are based on information announced on May 15, 2023.
Note 2: Since ﬁscal 2024, a fare system for barrier-free facilities at railway stations has been applied, and a barrier-free charge is levied in addition to the normal fare. The charge is included in
non-commuter pass revenue and commuter pass revenue (excluding school students commuter passes).

Hankyu Hanshin Holdings Integrated Report 2023

56

Summary of the Medium-Term Management Plan

Priority issues

Provide quality urban transportation services
Enhance services to match diversifying needs/Strengthen
cooperation within the Group

Ensure safe, reliable transportation
Maintain and steadily enhance driving safety/Promote measures
to prepare for large-scale disasters

Increase convenience and reliability of transportation
infrastructure, and stabilize business baseDevelop and expand railway stations and the transportation
network/Promote the creation of excitement around stations
and line-side urban development/Establish eﬃcient task
management systems

Take measures toward carbon neutrality
Promote introduction of energy-eﬃcient trains and equipment/
Promote introduction of EV buses/Work on energy generation
via solar power, etc./Encourage use of public transportation

Safe, reliableinfrastructure
Reason for action
plan based on
opportunity and risk

absolute best among the Kansai networks the ﬁrst,
core strategy of our Long-Term Vision. Our focus is on
making our line-side areas much more attractive byincommunity

leveraging

thelatestbuilding

andactivelytechnologies

toimproveconvenience and the level of service we can oﬀer,
with the aim of coping with the shrinking and aging
population.

To Takarazuka

Osaka International
Airport(Itami Airport)④Osaka Airport Line
Sanyo Shinkansen
Kobesannomiya⑤New Mukogawa Station
Hankyu Kobe LineJR Osaka Station(underground station)

investigating and discussing the new lines and new

Esaka

ShinOsaka

Minoh-Kayano①Extension of the Kita-Osaka Kyuko Line
Senri-Chuo
Kita-Osaka Kyuko Line
Osaka Metro

entrances. We believe that this will invigorate

Osaka-Namba

Kobe Airport

JR Namba

transport links to our line-side communities and allow
them to harness global power. Moreover, with the

JR Osaka
Loop Linegovernment s designation of the Shin-Osaka area as apriority district for urban regeneration, we are pushing
forward with a public-private partnership for new

JR & Nankai Lines

community development for an area that includes theadjacent Hankyu Juso and Awaji stations, where
Shin-Osaka will be at the center of eﬀorts to improve
the areaʼs incredible potential as a major transport
hub serving a large region.

Kansai International
AirportReason for action
plan based on
opportunity and risk

Osaka Metro

improve access to Osaka-Umeda from air and land

In particular, laying the Naniwasuji Connection Lineand the Shin-Osaka Connection Line will massively

Tokaido Shinkansen

Safe, reliableinfrastructure

Underway

Safe, reliableinfrastructure

Under
investigation/
discussion①Extension of the Kita-Osaka Kyuko Line
(Senri-Chuo to Minoh-Kayano)②Naniwasuji Connection Line (JR Osaka s newunderground station)③Shin-Osaka Connection Line (Juso to Shin-Osaka)④Osaka Airport Line (branch line from the
Takarazuka Line)⑤New Mukogawa Station (between Mukonoso andNishinomiya-kitaguchi)

Reason for action
plan based on
opportunity and risk

Predicting and responding to medium- and long-term changes to demand
Also in Urban Transportation, we will continue to pursue services

that is predicted to continue, it is unlikely to return to pre-that prioritize safety, peace of mind, and comfort, even as the

pandemic levels. Based on these kinds of forecasts, we will seek

pandemic has triggered changes in customer demand and needs.

to optimize existing services̶such as by appropriately reviewing

Using the barrier-free fare system at railway stations that has

train schedules to meet changes in demand̶while also

been levied since April 1, 2023 on Hankyu Corporation andpromoting measures to respond to new needs, such as byHanshin Electric Railway train journeys toward improving

introducing a seat reservation service. At the same time, we willaccessibility, such as for platform screen doors at all stations, wework to improve productivity, through new technologies andwill quickly but steadily install equipment to make stations moreother means, to secure proﬁt.

accessible and raise journey safety.

Action plan

• Improve safety
education training
and performance of
train operation safetysystems

Non-ﬁnancial KPIs

Creating Real Value:
The Foundations

Environmental
protection

Reason for action
plan based on
opportunity and risk

Financial Section andCorporate Data

PIs

Target values

Scope

FY2023 Actual record
Hankyu: 0 incidents (since 1979)
Hanshin: 0 incidents (since 1986)
Kita-Osaka Kyuko: 0 incidents (since 1970)
Nose Electric: 0 incidents (since 1982)
Hankyu Bus: 0 incidents
Hanshin Bus: 0 incidents
Hankyu Kanko Bus: 0 incidents
Hankyu Taxi: 0 incidents
Hanshin Taxi: 0 incidents
Osaka-Hanshin Taxi: 0 incidents

Number of culpable
incidents in railway
operation business

Maintain at zero

Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko
RailwayNose Electric Railway

Number of major
accidents in
automobile businessNo accidents involving
death

Hankyu Bus
Hanshin Bus
Hankyu Kanko Bus
Hankyu Taxi
Hanshin Taxi
Osaka-Hanshin Taxi

In response to rising interest in customer safety and peace of mind, to add transport reliability to the given fundamental of transport safety to put
customers at ease and strengthen the Groupʼs brand and trustworthiness• Seismic retroﬁtting(elevated bridges/
stations)• Slope protection• Flood protection
for major facilities(including railcar
evacuation)• Bridge reconstruction
to lower risk of
ﬂooding• Ascertainment ofbridge soundness

Long service
downtime due tonatural disaster(non-operational for
2 days or more)

Zero

Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway

0 incidents

To improve sturdiness to make railway infrastructure more resistant to natural disasters such as earthquakes or torrential rains and typhoons thatare intensifying due to climate change, and to set up core systems to enable continuation of operation after a disaster in order to strengthen theGroupʼs brand and trustworthiness• Guidance chime installation rate
Hankyu：41%
Hanshin：72%
Kita-Osaka Kyuko：0%
Nose：8%

Hankyu Kyoto Line

Umeda
Hanshin Main
HaOsaka-Umeda
Line
ns
hi
n
N
am
Naniwasuji Line
ba
Lin
e

station projects shown on this map.

Kyoto-kawaramachi③Shin-Osaka Connection Line

Juso

②NaniwasujiConnection LineAs part of that, in Urban Transportation, in order tofurther strengthen the transportation network, we are

HankyuTakarazuka
Line

Aiming to grow the value of line-side areas by expanding the transportation network
We have set making our line-side communities theCreating Real Value:
The Processes

Urban Transportation Business Non-Financial■ Basic Policies

engaging

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes• Expand wheelchair
space inrailcars, improve
responsiveness of
guidance chimes forthe vision-impaired,etc.
• Encourage rail transit
employees (station
employees, train crew,etc.) to acquire service
assistant certiﬁcation

Increase number ofaccessible railcars(units)Aim for steady increase

Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway• Installation rate of advance warning
light for side sliding door opening/closing
Hankyu：67%
Hanshin：72%
Kita-Osaka Kyuko：86%
Nose：77%

Percentage ofaccessible railway
stations• Rate of step-barrier
removal*1
100%

Hankyu：99%
Hanshin：100%
Kita-Osaka Kyuko：100%
Nose：100%

Accessible humanservice rate

• 100% service assistantcertiﬁcation among
rail transit employees(station employees,
train crew, etc.)

Hankyu：71%
Hanshin：100%
Kita-Osaka Kyuko：100%
Nose：29%

To proceed with accessibility measures both technical and human to provide safe, comfortable, high-quality service for diversifying needs in orderto strengthen the Groupʼs brand and trustworthiness• Introduction of
new low-energyconsumption railcars• Conversion to LED
lighting in stationbuildings, etc.

Rate of conversion
to VVVF invertertype railcars*2

Aim for steady increase

LED light
conversion• Station lighting(excluding back yard)
Hankyu:100% (FY2031)
Hanshin:
100% (FY2031)
Kita-Osaka Kyuko:
100% (FY2022)
Nose：
100% (FY2027)

Hankyu：63% (105/168 train units)
Hanshin：70% (53/76 train units)
Kita-Osaka Kyuko：100%
Nose：23% (3/13 train units)
Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway

Hankyu：60%
Hanshin：75%
Kita-Osaka Kyuko：100%
Nose：47%• To accelerate environmental measures amidst rising interest in environmental issues such as global warming in order to meet the expectations ofsociety• To prepare for the risk of rising costs such as electricity rates accompanying stricter environmental regulations*1 Percentage of accessible stations (among stations that service 3,000 or more passengers per day)*2 VVVF inverter-type railcar: a diﬀerent type of railcar (not the type that generates waste heat energy to control resistors to adjust the voltage for the motor), but a moreenvironmentally eﬃcient railcar that can control the motorʼs voltage and frequency without waste

While transportation revenue has recently been gradually
recovering from the eﬀects of COVID-19, and this is something

57

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

58

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Business Strategy

Real Estate

Fiscal 2023 Review of Operations

Our goal is to support attractive urban
development while o ering the choiceof an a uent lifestyle.

While the eﬀects of the pandemic linger, restrictions on

hotel business, and in rental income for our line-side commercial

movements and behavior have been eased. As a result, we havefacilities in our real estate leasing business. This resulted inseen a partial recovery in the number of users of ourincreased operating revenue and proﬁt compared to the previous

accommodation operations and food/beverage business in ourﬁscal year.

■ Revenue and Pro t
Operating revenue (left axis)

Operating proﬁt/business proﬁt (right axis)(¥ billion)(¥ billion)

360

Business Environment

240

Real estate leasing business

Overseas real estate business

Demand for our oﬃce building remains stable, thanks to their

Economic growth in the ASEAN region has been particularly

advantageous locations and functions. However, as a result of theremarkable, and sustainable growth there looks likely. Promoting

pandemic, ways of working are diversifying, and so the roles andbusiness expansion in such a region is a two-fold chance to utilize

functions expected of oﬃce buildings are also changing; wethe expertise we have built up in Japan there, but also totherefore need to respond to changes like these. For ourincorporate new ideas from overseas into our line-side and othercommercial facilities, we need to continuously improve theircommunity development projects.

value̶such as through renovations or tenant changes̶so as toHotel businessdiﬀerentiate our facilities from others in the area.

As a result of the Japanese government s easing of protective

Real estate sales business and othersmeasures at ports and airports in October 2022, tourism to

Demand remains strong in our core sector̶urban central

Japan is recovering. Added to this, the planned Expo 2025 inareas whose prime location and proximity to train stations

Osaka and other events are expected to drive up demand foroﬀer high convenience. Sales prices, too, have stayed at a highhotel stays in the Kansai area.

interest

rates,

factorsthat

impact

282.0

188.4
41.5

28.9

42.2
19.4

27.9

75

50

25

0

0
2020
Results

2021
Results

2022
Results

consumer(with separate head oﬃce expenses, etc.)(¥ billion)

HotelOverseas real estate business

60
40
20

15.1
35.2

1.1

0.2
5.1

Sales
Leasing

9.1

15.7

30.1

32.4

31.9

‒13.2

‒4.8

2022
Results

2023
2024
Results (Estimate)

8.3

11.4

29.2

0

2023
2024
Results (Estimate)(FY)

Hotel business not included

level. We do, however, need to remain vigilant about trends inmortgage

120

246.6

236.0

329.4

Operating proﬁt/business proﬁt by type of business

Note 1: The anticipated full-year results for ﬁscal 2024 are based on information
announced on May 15, 2023.
Note 2: Business proﬁt: Operating proﬁt + Equity-method gains/losses related tooverseas business investments (as there were previously no equity method
aﬃliates connected to business overseas, for data relating to ﬁscal 2023 or
earlier, business proﬁt and operating proﬁt are the same).
Note 3: In line with the integration of the hotel business into the real estate businessfrom ﬁscal 2023, ﬁgures from ﬁscal 2022 onward include the hotel business.
Note 4: From ﬁscal 2024, overseas real estate business, previously recorded as partof Real estate sales business and others, will be an independent category.
Fiscal 2023 results are the post-reorganization ﬁgures.

-20
2020
Results

2021
Results(FY)

Hotel business not included(¥ billion)
Reference:
Hotel business

(FY)

2020
Results

2021
Results

Operating revenue

60.3

19.1

Operating proﬁt

‒3.1

‒17.9

conﬁdence (such as reviews to taxation systems), and trends
in construction costs.

Summary of the Medium-Term Management Plan

240
■ Leasablearea (at end of scal year)120(1,000 m²)

2,200

1,600
1,400
1,200

1,700

Completion of Osaka Umeda
Twin Towers North Phase II

2013

2014

Completion of Osaka Umeda Twin Towers
South Phase I, start of work on Phase II, andpartial sale of stake in GRAND FRONT OSAKA

Start of work on Osaka Umeda
Twin Towers South Phase I

2015

2016

2,000

2017

2018

2019

(yen)

1,516
1,114

90.9

867

90.9

1,137 1,107

10,000

2020

2021

2022

2023

2020

2021

ADR (Kansai region)
ADR (Tokyo region)

700

Completion of Osaka Umeda
Twin Towers South Phase II

2022

2023

(FY)

(FY)

0

2019

Occupancy rate (Kansai region)
Occupancy rate (Tokyo region)

89.5 89.5

80.6

79.7
16,654※2
13,748※2
20,00016,167
12,550

500

2019

900

600

73.9

Hankyu Hanshin Holdings Integrated Report 2023

Promote attractive urban development in Osaka-Umeda
and areas along our rail lines to make our line-side
communities the absolute best among the ansai
networks• Enhance urban functions by promoting large-scale
development plans and both upgrading the value of andrebuilding holdings based on the Umeda Vision plan (see page
33)
• Develop major line-side bases from a long-term perspective

Overseas real estate business
Expand the scale of international businesses and build astable revenue base

• Expand the scale of business in ASEAN nations• Extend to developed countries (U.S.A. and others), which havestable markets• Acquire non-residential assets such as commercial facilities
and oﬃces

（%）

100.0
75.0

73.1

*1 For hotels that were temporarily closed due to the COVID-19 pandemic, data for the periods
they were shut is omitted from the ﬁgures above.
*2 In ﬁscal 2020, we switched how we record overseas OTA results from net to gross ﬁgures. As aresult, data for ﬁscal 2019 has been calculated retrospectively to produce a gross amount.

59

Real estate leasing business

Strengthen short-term-return ( x-and- ip) business anddistribution facility real estate business

50.0
19,66812,782
15,23340.9
28.9
11,91225.0
8,968 8,358
16.8 10,287
11,830
0
(FY)
2020
2021
2022
2023
Q1, 2024

46.8■ Basic Policies

Strengthen business foundation, etc., in Tokyo
metropolitan area

■ Average daily rate (ADR) and occupancy rate atHankyu Hanshin Hotels directly managed hotels(units)

0

1,000

800

■ Domestic condominium units sold

1,000

1,100

940

Completion of GRANDFRONT OSAKA

760

1,500

(1,000 m²)

Acquired LaLaport
Koshien (site)

Leasable area in Osaka-Umeda (right axis)

2,000
1,800

2,230

Leasable area (left axis)

Real estate sales business and others
Secure stable pro ts in the real estate sales business andexpand scale of operations• Participate in medium- and long-term projects(urban redevelopment, building reconstruction, etc.)• Expand business portfolio (rental condominiums for income,etc.)• Expand business area (extend to Nagoya area and major
regional cities)

Hotel business
Carry out structural reforms• Strengthen business competitivenessStrengthen competitiveness by using management resources
to concentrate and specialize• Improve competitiveness of each hotel
Review cost structure at existing hotels/
Improve eﬃciency of business operations at existing hotels

Strengthen and expand non-asset business• Expand scope of real estate funds and REIT business

Hankyu Hanshin Holdings Integrated Report 2023

60

Profile

Creating Real Value: The Processes

The absolute best line-side communities among theansai networks

Overseas expansion focused on the ASEAN region
Special Feature 2 (see pages 35 36)

Special Feature 1 (see pages 31 34)

In our overseas real estate business, in addition to the residential

In the real estate leasing business, increased occupancy of the Osaka

sales business we have focused on in the ASEAN region so far,Umeda Twin Towers South building and other factors is expected to

we are working on our long-term holding business (real estate

boost rental income, which we anticipate will increase proﬁt signiﬁcantly

leasing business) and rotational business (short-term-return

through ﬁscal 2026. In addition, as part of eﬀorts connected to the ﬁrst

business) to quickly expand and grow the scale of our earnings

strategy in our Long-Term Vision̶to make our line-side communities theand proﬁts.

absolute best among the Kansai networks̶we will develop and enhancethe value of major bases such as the Osaka-Umeda area.

Based on this policy, in ﬁscal 2023 we acquired Central Park
Mall, a large-scale commercial facility in Indonesia.

Real Estate Business Non-Financial
Priority issues

Safe, reliableinfrastructure

Creating Real Value:
The Processes

Creating Real Value:
Our Story

Action plan
• Implement measures, bothhuman and technological, toenable customer use withpeace of mind, including
measures to manage natural
disasters

Creating Real Value:
The Foundations

Financial Section andCorporate Data

PIs

Non-ﬁnancial KPIs

Target values

Scope

FY2023 Actual record

Accident and emergency
course attendance rate(for employees in realestate leasing)

100% (FY2031)

Hankyu Hanshin
Properties
79％
Hankyu Hanshin Building
Management

BCP readiness*1 rate forlarge buildings*2 in the
Osaka-Umeda area

100%

Hankyu Corporation
100%
Hanshin Electric Railway Note: Target property:
Osaka Umeda Twin
Hankyu Hanshin
Towers South
Properties

In response to rising calls for safety, to prepare for accidents or natural disasters such as earthquakes or ﬂooding from storms occurring more
Reason for action
frequently because of climate change through measures both human and technological, thereby strengthening the Groupʼs brand value andplan based on
opportunity and risk trustworthiness

Safe, reliableinfrastructure• Manage use of selectingredients listed on menus• Train employees on menu
creation and item listings• Comply with designatedsystem of checks

Number of serious
culpable incidents related Maintain at zero
to listing of foods

Hankyu Hanshin Hotels
Hanshin Hotel Systems

0 incidents

Reason for action
To make an active and ongoing eﬀort to label foods properly in order to provide customers with safe food, thereby helping to build trust in the Groupplan based on
and bolster our brand value
opportunity and risk

Osaka Umeda Twin Towers South (fully completed in February 2022)

Central Park Mall, a large-scale commercial facility in Indonesia (acquired in September 2022)

Residential sales business and business portfolio expansion

Recovery and structural reforms for a stronger business

In Japan, meanwhile, we will develop our short-term-return

In the hotel business, we are continuing to work on a gradualbusiness (selling rental condominiums to investors to generate

recovery in sales for our accommodation operations and food/revenues), as well as our residential sales business (whichbeverage business after the pandemic. We are also focused on

includes redevelopments or building replacement) and wetaking on demand that will come with the holding of Expo 2025

forecast that proﬁt will continue to grow into ﬁscal 2026.

in Osaka.

Geo Tower Takarazuka
Grand Regis, a large-scale
development on the site of
the old Takarazuka HotelSafe, reliableinfrastructure• Enhance collaboration with local
governments• Prepare stockpiles of items
for disaster preparedness andestablish a system for managing
them• Prepare a response manual forwhen lifelines get cut oﬀ• Prepare a response manual for
how to evacuate, the location ofevacuation shelters, etc.

toward structural reforms, and we concluded operations at ﬁve
hotels by the end of ﬁscal 2023. We also plan to shut down
2025 and Senri Hankyu Hotel around the end of ﬁscal 2026.
In the latter half of ﬁscal 2025, though, we plan to open the

Thriving
communities• Carry out robust urban
development that promotes
ease of use for diverse
customers and working styles

Hotel Hankyu GRAND RESPIRE OSAKA in the GRAND GREENOSAKA building, part of the Umekita Phase II Development
Project. Using its proximity to the underground station part of JR
Osaka Station, which provides access to Kansai International
Airport, the hotel s main target will be adult frequent travelers

Rate of multilingual
guidance at major
100%
commercial facilities in the
Osaka-Umeda area

Number of startups
and other collaborative
projects aimed at creating
new work-life-play forms
Aiming for a steady increasefor diverse lifestyles andto provide services that
improve safety, comfort,
and peace of mind

Hankyu Corporation
Hanshin Electric Railway 88 instances
Hankyu Hanshin(since FY2019)
Properties

Reason for action
To provide facilities and services that deliver safety and comfort and oﬀer dreams and inspiration, and that are easy to use for a diverse range ofplan based on
customers, including non-Japanese people; and to get out ahead of the growing need for work style reform and diversiﬁcation, thereby diﬀerentiating
opportunity and risk our Company from others and strengthening our competitiveness

Life designs for
tomorrow

61

Hankyu Hanshin Holdings Integrated Report 2023

Secure a 3-day supply for
employees and a 1-day
supply for guests (based on a
100% occupancy rate)

100%
Note: Target facilities:
Hankyu Sanban Gai, HEP
Hankyu Corporation
Five, Herbis Plaza, Herbis
Hanshin Electric Railway
Plaza ENT (Facilities website
Hankyu Hanshin
and pamphlet available in
Properties
4 languages, interpretation
service available atinformation desk)

visiting Japan for tourism and leisure.

Geo Tower Osaka Juso, acombined development
brings together diﬀerent
generations through its
residential, commercial, andgovernmental facilities(scheduled to begin
handovers in ﬁscal 2027)

Hankyu Hanshin Hotels

Reason for action
To strengthen risk countermeasures in times of emergency and create an environment in which customers can feel safe at a hotel, thereby helping toplan based onbuild trust in the Group and bolster our brand value
opportunity and risk

Alongside this, we are currently making steady progress

operations at Hotel new Hankyu Osaka around the end of ﬁscal

Secure a 3-day supply for
Prepare stockpiles of items
employees and guests
for disaster preparedness(FY2031)• Work to improve customer
satisfaction by responding
to customersʼ diverse values,
providing comfort andinspiration, and proposing
lifestyles and carrying out urban
development projects that willlead to community revitalization

Geo condominium or
and home purchasedesirability and tenant/owner satisfaction rates• Purchase desirability survey of• Purchase desirability
prospective buyers*3
No. 1 among 18 brands for
Kansai-region condominiums:
prospective condominium
Maintained No. 1 brand position inbuyers in Kansai region
No. 10 among 16 brands for
KansaiTokyo-region condominiums: Among Hankyu Corporation
prospective condominium
the top 7 brands in Tokyo (FY2031) Hanshin Electric Railway
buyers in Tokyo region• Tenant/owner satisfaction rates
Hankyu Hanshin• Satisfaction rates
Condominium tenants in Kansai
Among condominium tenants
Properties
region: continued to be 90% or higher
in Kansai region: 91%
Condominium tenants in Tokyo
Among condominium tenantsregion: 90% or higher (FY2031)
in Tokyo region: 96%
Detached-home owners in Kansai
Among detached-home owners
region: 90% or higher (FY2031)
in Kansai region: 95%*4

Number of apartment
units sold in ASEAN
countries (total)

Aim is for a steady increase

Hankyu Hanshin
Properties

Approx. 51,120 units(Vietnam: 14,000; Thailand:
28,000; Philippines: 4,000;
Indonesia: 4,000; Malaysia: 1,000)• To increase customer satisfaction and boost loyalty to the company brands, propose lifestyles that match diversifying customer values and needs,
Reason for action
and carry out urban development for local revitalization and the beneﬁt of the next generation
plan based on• To leverage our expertise from Japan to contribute to local urban development in ASEAN countries in order to boost the Groupʼs brand value
opportunity and risk
overseas and develop future clientele

Hotel Hankyu GRAND RESPIRE OSAKA (scheduled to open in the latter half of ﬁscal 2025)*1 BCP readiness: emergency power installed at the 3rd ﬂoor or higher; emergency power to last 72 hours*2 Large buildings: buildings with a total ﬂoor area of 30,000 m² or more that were completed in ﬁscal 2022 or later*3 Based on purchase desirability survey of prospective buyers (conducted by Hankyu Hanshin Marketing Solutions on the Web)
*4 Pertains to Geo Garden houses with handover between April 2021 and March 2022

Hankyu Hanshin Holdings Integrated Report 2023

62

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Business Strategy

Priority issues

Environmental
protection

Reason for action
plan based on
opportunity and risk

Environmental
protection

Reason for action
plan based on
opportunity and risk

Environmental
protection
Reason for action
plan based on
opportunity and risk

Action plan

• Reduce CO₂ emissions byimproving energy eﬃciencies,etc., and pursue green
building and eco-friendly
housing to contribute toresolving societal issues anddiﬀerentiate the company

Non-ﬁnancial KPIs

Target values

Scope

Percentage of all new
condominiums that goon sale or start taking
applications for lease in
FY2025 onward that are
ZEH certiﬁed(ZEH-M oriented*¹ or
better)100%
Note:
Excluding someproperties suchas those jointly
owned withanother company

Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin
Properties

100%

Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin
Properties

Acquisition rate ofgreen building andother environmental
certiﬁcations*2 that
apply to oﬃce buildings
and large buildings*3
for commercial andother uses

FY2023 Actual record

−

Note:
Applied from Geo Saito Irodori No
Oka; construction to be completed
in FY2024

100%
Note: Target properties:
Kobe-Sannomiya Hankyu Building(acquired a 3-star DBJ rating in
FY2022)
Osaka Umeda Twin Towers South(acquired a 5-star DBJ rating in
FY2023)To maintain and improve the asset value of owned real estate, improve customer ratings, and raise brand value by taking active measures toachieve carbon neutrality• Control food waste (useprocessed waste materials
eﬀectively, and devise ways ofserving and arranging food)• Establish a system forweighing waste• Promote the reduction andrecycling of waste• Introduce garbage disposals
for food waste disposal

We will continue to ful ll dreams ando er excitement through our content.

Business Environment■ Revenue and Pro t

Embracing the rising value of real experiences
brought on by the COVID-19 crisis

Operating revenue (left axis)(¥ billion)80

One outcome of COVID-19 has been the diversiﬁcation of
consumption styles in the entertainment market. Live streaming
Volume of food waste

50% reduction
compared to
FY2014(FY2031)

Hankyu Hanshin Hotels

66% reduction compared to FY2014
Note:
Steep drop-oﬀ due to the COVID-19
pandemic

60of content of all kinds has spread, along with the use of digitaltechnologies in streaming such as XR (extended reality). At the

40same time, when pandemic restrictions were lifted, people
realized how much they valued the shared experience ofattending events live, in person.

To contribute to building a sustainable society by working hard to reduce food waste as a company that handles food in light of the growing
problem of food waste• Study how to eliminate theuse of disposable plastic
items• Select products made ofalternative materials

Entertainment

The pandemic had a tremendous impact on the entertainment

50% reduction
compared to
FY2020(FY2031)

14.8% reduction (196 items)

To respond to customer expectations and contribute to building a sustainable society by working hard to reduce the use of plastics in light ofgrowing global concern among the public about microplastics ruining the environment*1 ZEH-M Oriented (Zero Emissions House-Mansion): a condominium with 20% or more reduced overall primary energy consumption, including common areas (the energy
consumed for heating, cooling, ventilation, lighting and hot water heating as deﬁned by 2016 energy conservation standards)*2 Environmental certiﬁcations: systems such as DBJ Green Building, CASBEE, BELS, LEED, etc.
*3 Large buildings: buildings with a total ﬂoor area of 30,000 m² or more that were completed in ﬁscal 2021 or later (excluding properties jointly owned with anothercompany)*4 Changes to non-ﬁnancial KPIs and targets from ﬁscal 2024: Decrease per-person amount of plastic (for 20 designated guest room items) by 70% compared to ﬁscal 2022
levels by ﬁscal 2031

11.7

42.2

75.0

12.6

11.7

9.3

(¥ billion)
20
15
10
5

0

0

‒2.3

business, with limitations imposed on attendance at stadium

2020
Results

eased recently, business has been returning to pre-pandemic
Hankyu Hanshin Hotels

62.9

72.3

20

events and theater performances. But with restrictions having
Number of disposable
plastic items in guest
rooms*⁴74.0

Operating proﬁt (right axis)

levels. To embrace the rising value of the live-attendance

2021
Results-5
2022
Results

2023
2024
Results (Estimate)(FY)

Operating proﬁt by type of businessexperience, we will further reﬁne the content itself and employ(with separate head oﬃce expenses, etc.)

Stage
Sports(¥ billion)
20

digital and other new technologies to expand services andoﬀerings, aiming for further growth through greater entertainment
appeal and an expanded customer base.

15
10

Fiscal 2023 Review of Operations

7.2

5
0

In the stage business, the eﬀects of the pandemic still lingered,-5with the cancellation of many Takarazuka Revue performances,

2020
Results

but in the sports business, the lifting of restrictions on stadium
events led to greater attendance at Hanshin Tigers home games,
resulting in increased operating revenue and proﬁt compared to

6.5

6.8

7.0

7.4

6.4

6.9
1.7
‒2.5

3.7

2021
Results

2022
Results

2023
2024
Results (Estimate)(FY)

Note: The anticipated full-year results for ﬁscal 2024 are based on information
announced on May 15, 2023.

the previous year.

■ Total attendance at Hanshin Tigers home games (by season)■ Takarazuka Revue total attendance of performances(Thousands of people)(Thousands of people)

3,500

3,500

3,000
2,500

2,772 2,690 2,878

2,911

3,035

2,899

3,091

3,000

2,619

2,500

2,000

2,000

1,500

1,500

1,000
500

518

749

2,996

3,128

2,991

2,716 2,781

1,565

500
0

2013 2014 2015 2016 2017 2018 2019 20202021 2022(CY)*1 Live viewing of shows at movie theaters nationwide for paying audiences*2 Live streaming of shows via the internet for viewing at home on a TV, smartphone,or other device for paying viewers (starting in ﬁscal 2021)

Hankyu Hanshin Holdings Integrated Report 2023

2,825 2,844

Live viewing*¹/ Live streaming*²

1,000

0

63

2,672 2,668

Takarazuka Grand Theater/Tokyo Takarazuka Theater

Other theaters

2014 2015 2016 2017 2018 2019 20202021 2022 2023
(FY)

Number of shows:
Takarazuka Grand Theater: 368 (-22 from previous year, 78 cancellations)Tokyo Takarazuka Theater: 390 (+3 from previous year, 64 cancellations)Hankyu Hanshin Holdings Integrated Report 2023

64

Profile

Creating Real Value: The Processes

Summary of the Medium-Term Management Plan

Creating Real Value:
The Processes

Creating Real Value:
Our Story

Entertainment Business Non-Financial■ Basic Policies

Priority issues

Maximize value of the Hanshin Tigers and oshien brands
Forge a team that contends for the championship on a regular basis/Increase the appeal of Hanshin Koshien Stadium and the
Koshien area, and expand the stadium businessMaximize value of the Takarazuka brand
Quickly restore the capacity utilization and build a strong ﬁnancial record for the Takarazuka Revue/Actively expand the content
business using digital technologies/International trial performances

Safe, reliableinfrastructure

Reason for action
plan based on
opportunity and risk

Action plan
• Train theater attendants toimprove their customer service
skills• Provide multilingual support using
communication tools, etc.
(English, Chinese, Korean)• Improve/renovate facilities andsignage• Explore the introduction of newservices using cutting-edge
technologies

Creating Real Value:
The Foundations

Financial Section andCorporate Data

PIs

Non-ﬁnancial KPIs

Number of training
sessions on universal
service

Target values

Scope

FY2023 Actual record

Once a year
(Takarazuka Grand Theater,
Tokyo Takarazuka Theater,
Umeda Arts Theater)

Hankyu Corporation
Umeda Arts Theater

Takarazuka Grand Theater:
once a year
Tokyo Takarazuka Theater:
once a year
Umeda Arts Theater:
once a year

To expand the customer base for the Takarazuka Revue and other theatrical performances by oﬀering more opportunities to see productions andcreating accessible theaters, which means safe, comfortable attendance no matter what a personʼs needs̶whether disabilities or other physicalconditions̶plus language accessibility for guests from abroad.

Advance growth of other entertainment businesses and the leisure business
Expand the music business and Mt. Rokko businesses

In the entertainment business, we plan to expand the customer base and grow new revenue sources through streaming and other digitaltechnologies to exceed pre-pandemic proﬁt levels through ﬁscal 2026.

The Hanshin Tigers baseball team and Hanshin
oshien Stadium are great sports content

We are expanding services using digital technologies
to enhance the appeal of stage content

anniversary in 2024, is a familiar baseball stadium loved byloyalty using new digital technologies that include live streaming,

people all over Japan. We want it to continue that legacy as awhich was started out of necessity during the pandemic.

Life designs for
tomorrow
Reason for action
plan based on
opportunity and risk

歌Takarazuka
劇 1 1 0Revue
周 年ロゴ
［カラー
定building］Hanshin Koshien Stadium, which will celebrate its 100th 宝 塚
Theis expanding
its fan base設andstadium that people want to visit from across Japan and around

In December 2021, the Takarazuka Revue common ID was

the world for the next 100 years. To make that happen, we strive

introduced to allow its users access to multiple services̶into provide a safer, more pleasant environment for spectators

August 2022, a members-only video streaming service wasthrough various means that include enhancing the communications

started using the Group s video streaming platform; the following

infrastructure at the stadium, introducing electronic ticketing, amonth the oﬃcial Takarazuka Revue Pocket app was released.

POS system that accepts diﬀerent types of digital payment for

These services promote use of the Takarazuka Revue common

greater convenience, and a construction plan to extend theID, strengthening engagement with a light fan base. Also, in June

Ginsan roof over the grandstand (which covers part of the inﬁeld

2023, Takarazuka Revue conducted a trial live streaming forseating) to the Alps section of the stands.

overseas customers for the ﬁrst time.

The Hanshin Tigers also plans to relocate their farm team

Many special events and other projects will be held in 2024,

facility to Odaminami Park Ballpark in Amagasaki in March 2025

when the Takarazuka Revue celebrates its 110th anniversary, toto greatly improve the environment for player development andfurther enhance the appeal of the stage content.

training and keep the team strong in the future.

モノクロ 使 用・K 1 0 0 ％Oﬃcial Takarazuka Revue Pocket app

Life designs for
tomorrow

Reason for action
plan based on
opportunity and risk

・白 ヌ キ

Reason for action
plan based on
opportunity and risk

Hanshin Koshien Stadium 100th Anniversary logo

Reason for action
plan based on
opportunity and risk

カラ ー 使 用（ スミレ カラ ー ）・C 5 0 ％ ＋ M 6 5 ％・D I C 2 2 0 7

65

Hankyu Hanshin Holdings Integrated Report 2023

Number of baseballschool classes hosted
by the Tigers Academy

Maintain 60 or more classes
into the future

Hanshin Tigers
Baseball Club62 classes

To promote baseball by developing womenʼs baseball and by training youth as the next generation of good athletes, thereby expanding the fanbase for professional baseball• Actively provide opportunities
to school groups to attend
performances of the Takarazuka
Revue• Hold events for youth such as
kidsʼ seminars• Look into holding lectures andseminars led by Takarazuka Revuealumnae in collaboration with themedia• Hold series of Takarazuka
Kodomo Athene*² classes at the
Takarazuka Music School

Number of students/
children who attended
a performance andrelated program

Over 60,000 (annually)

Hankyu Corporation
Umeda Arts Theater
Takarazuka Live Next
Takarazuka Music
SchoolApprox. 68,000 (attendeesof performance/related
program, Takarazuka
Music School candidates,
Takarazuka Kodomo
Athene students)• To provide opportunities for youth to have contact with the performing arts and contribute to cultural education, including fostering a richimagination and artistic sensibilities• To give dreams to children by promoting the appeal of the Takarazuka Music School and supporting the fulﬁllment of their dreams through astrong school curriculum, thereby contributing to the cultivation of young talent• Hold performances of the
Takarazuka Revue outside the
Osaka and Tokyo areas• Oﬀer live viewing at movie
theaters or other venues andlive stream to mobile devices,
employing digital technologies
Life designs forand delivery services
tomorrow• Stream video using Takarazuka
Sky Stage*³
ネ ガ 使 用• Stream video using
YouTube, etc.

Environmental
protection

Takarazuka Revue
110th Anniversary
logo• Provide opportunities for children
to experience the natural appealof baseball through the Tigers
Academy*¹

Total number of viewersof theater performances
outside the Osaka andTokyo area, as well aslive viewing and live
streaming, Takarazuka
Sky Stage subscribers(households), YouTube
channel subscribers,etc.

Over 1.20 million people(FY2026)

Hankyu Corporation
Takarazuka Creative
Arts
Takarazuka Stage
Takarazuka Music
SchoolApprox. 1.07 million
people• To get people to become more familiar with the Takarazuka Revue in many other parts of Japan using advanced digital technologies even if they
are unable to get to a theater, thereby creating more opportunities for people to have contact with the performing arts
• Promote the appeal of the Takarazuka Music School to all parts of Japan, and by fostering the dream among children of performing on stage, help
build a society that encourages dreams and ambitions• Convert Hanshin Koshien Stadium
lighting to LED lighting for night
games and placement around thestadium, utilize solar panels on
the roof known as “Ginsan,” andhold “carbon oﬀset” games• Switch to the use of biomass
packaging material at food stalls
and take steps to reduce plastic
checkout bags
• Implement the collection andrecycling of plastic cups

Usage rate of nonplastic food packaging

Pro baseball/high school
baseball games: 70% each(2030 season)

Plastic cup collectionrate

70% (2030 season)

Hanshin Electric
Railway
Hanshin Tigers
Baseball Club
Wellness Hanshin

Pro baseball: 51%
High school baseball: 47%(2022 season)

35% (2022 season)

Carry out environmental measures at Hanshin Koshien Stadium and comprehensively publicize those efforts, thereby contributing toward theachievement of a carbon-neutral, circular society*1 Tigers Academy:
establishedin ﬁscal 2019 to instruct children on how to play baseball or how to dance
カラ ー a使school
用（ business
ゴ ー ルド）*2 Takarazuka Kodomo Athene: a school run by employees of the Takarazuka Music School that teaches singing, ballet and classical Japanese dance to girls from4th to ・C
8th grade(40＋
students/year)20％
M30％＋Y60％＋K15％*3 Takarazuka Sky Stage: a service for viewing public performances and original programs featuring Takarazuka Revue stars via CS broadcasts and cable TV

・D I C 2 3 0 6

Hankyu Hanshin Holdings Integrated Report 2023

66

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Business Strategy

Information andCommunication Technology

Incorporating accelerating D
pro ts further

We contribute to the development ofsociety through information andcommunication technology.
Business Environment

Fiscal 2023 Review of Operations

Collecting Group strengths, to contribute tocommunity development through one-stop solutions

As some of our activities in our information services business, we

In June 2023, we launched the Machizukuri ( community

are actively incorporating demand among railway companies fordevelopment ) DX website, which brings together ICT solutions

in-train security cameras (which are increasingly installed) andservices developed at diﬀerent Group companies to help eﬀorts

systems related to platform doors. At the same time, we are also

by local governments across Japan to incorporate DX into

focusing our energies on using digital technologies to develop

community development.

and roll out solutions that can contribute to improved productivity

The website gives a comprehensive introduction to the ICT

and eﬃciency. In January and February 2023, on part of thesolutions services our Group companies can oﬀer, particularly

Hanshin Main Line, we used local 5G, AI image recognition, andthose from Itec Hankyu Hanshin Co., Ltd.; Mimamorume Co., Ltd.;other technologies for a trial of a system to quickly detectand Hanshin Cable Engineering Co., Ltd. In the future, we will

equipment or in-train irregularities or similar. In such ways, we are

ﬂexibly combine these technologies depending on each local

striving to oﬀer solutions that improve railway safety via digital

authority s needs, and further customization will allow us to oﬀer

technologies.

a one-stop solution. We will also aim for services that follow

Markets are expanding in all business areas astechnological innovations unfold

In the information services business, steady eﬀorts to increase

Through activities like these to proactively capture accelerating

people closely, with a focus on the national government s goal of

the number of orders, among other measures, led to improved

demand for DX, and through them achieve growth in thehaving all regional authorities working on digital implementation

In the information services business, we foresee further growth inrevenues from the previous ﬁscal year, but for the broadcasting

information services business (including through M&A) and an

by 2030.

corporate investment̶which will connect to new IT demand̶inand communications business, factors such as a rebound after

expansion in scale for the broadcasting and communications

areas such as DX, energy savings, and safety. We can therefore

large orders last year and rising expenses, meant that proﬁts

business,

expect robust growth in the market. In the transportation sector

were largely the same as the previous ﬁscal year.

business is predicted to see increased operating proﬁt into ﬁscal

in particular, a heightened interest in railway safety and security
has led to the installation of in-train security cameras becoming
those for in-train security or platform safety.
The broadcasting and communications business will see
continued steady growth for cable television focused on internet
service, which is being driven by the spread of teleworking andOperating revenue (left axis)(¥ billion)

80

58.6

58.1

59.2

60.4

65.8

20

anticipated demand growth.
The market for the safety and education business is likely to

15

Priority issues

continue growing as parents and guardians take increasing
interest in our child safety service that monitors children sjourneys to and from school. As programming classes became
compulsory in elementary schools, the market for our STEAM
education* will also take hold.
*STEAM Education is an approach to learning that provides an integrated
education across the subject areas of Science, Technology, Engineering,
the Arts and Mathematics aimed at solving real-world societal issues aspart of the learning process.

10

40
20

5.6

5.6

5.9

5.9

6.1

5
0

0
2020
Results

2021
Results

2022
Results

2023
2024
Results (Estimate)(FY)

Safe, reliableinfrastructure
Reason for action
plan based on
opportunity and risk

Note: The anticipated full-year results for ﬁscal 2024 are based on
information announced on May 15, 2023.

Thriving
communities

Summary of the Medium-Term Management Plan
■ Basic Policies

Reason for action
plan based on
opportunity and risk

Information Services
Strengthen proﬁtability power in existing businesses, bring in technologies that are lacking through outside partnerships,
integrate with the Company s own products, and resolve societal issues inside and outside the Group to co-create a new
future.

Broadcasting and Communications
Further expand broadcasting and telecommunications networks and diversify their uses to broaden our presence as a regional
infrastructure provider and provide reliable communications services over the long term.

Safety and EducationOﬀer peace of mind to people in many ways through original ideas and cutting-edge technologies (IoT, AI, drones, AR/VR, 5G,etc.), and provide quality education to children (tomorrow s leaders) that is a step ahead of what is needed in society.

Hankyu Hanshin Holdings Integrated Report 2023

andcommunication

technology

Machizukuri DX website https://www.machidx-hh.jp/(Japanese only)

Information and Communication Technology Business Non-Financial

other trends. Going forward, needs will grow for technologicaladvances in telecommunications and data centers to meetinformation

Operating proﬁt (right axis)(¥ billion)

60

the

2026.

■ Revenue and Pro t

compulsory, and is expected to boost needs for solutions like67

demand will grow

RobustgovernanceReason for action
plan based on
opportunity and risk

Action plan

Non-ﬁnancial KPIs

• Strengthen eﬀorts aimed atgetting local authorities toenter into an agreement on
disaster preparedness in the
Kyoto-Osaka-Kobe area andTokyo metropolitan area

Number of local
authorities to sign adisaster preparedness
agreement

Target values―(monitoring actual
record)

PIs

Scope

Bay Communications
Hanshin Cable Engineering
Itec Hankyu Hanshin

FY2023 Actual record
Bay Communications:
4 local authorities
Hanshin Cable Engineering:
16 local authorities
Itec Hankyu Hanshin:
7 local authorities• To respond rapidly and appropriately when a disaster occurs as a local telecommunications infrastructure provider, thereby contributing to thesafety and security of local residents• To strengthen responses to local government needs (disaster preparedness and mitigation, crime prevention, etc.) in preparation for expanding
the BWA business*¹• Use the Mimamorume*²
school route safety tracking
system as the core of our
security business to expand
GPS services as services that
diﬀerentiate us and enhance
our competitiveness• Expand the Machinaka
Mimamorume*³ service
for city residents, anopportunity for using our
BWA business

Number of local
authorities to which
we contract GPS
service and Machinaka
Mimamorume andother safety systems―(monitoring actual
record)Mimamorume

GPS service contracts:
39 local authorities
Machinaka Mimamorume:
7 local authorities• To help raise the value of line-side areas by responding to increased interest in safety and security• To utilize the Groupʼs wireless and wired communications networks, external lines, and construction expertise for expanding services• Acquire external certiﬁcation
for information security(PrivacyMark, ISMS*⁴)

Status of acquisition of
external certiﬁcation
for information security(PrivacyMark, ISMS)―(monitoring actual
record)Itec Hankyu Hanshin,YMIRLINK, Rworks,
Nihon Protec, Bay
Communications,
Himeji Cable Television,
BAN-BAN Networks,
Hanshin Cable Engineering,Mimamorume

Privacy Mark & ISMS: Itec
Hankyu Hanshin, YMIRLINK,Rworks, and Nihon Protec;
Privacy Mark only: Bay
Communications, Himeji Cable
Television, BAN-BAN Networks,
Hanshin Cable Engineering, andMimamorume

To ensure the secure handling of personal information and electronic data as an information and communications technology company tostrengthen customer trust in the company*1 BWA business: Broadband Wireless Access system*2 Mimamorume school route email notiﬁcation service: a service that links school gate sensors and IC tags in childrenʼs school backpacks for tracking whenchildren arrive or leave school, providing notiﬁcations by smartphone app or email*3 Machinaka Mimamorume: a service that allows family members with a beacon tag to receive notiﬁcations by smartphone app or email when the tag passes
a location such as a school or street intersection where a beacon receiver is set up*4 ISMS: Information Security Management System

Hankyu Hanshin Holdings Integrated Report 2023

68

Profile

Creating Real Value: The Processes

Creating Real Value:
The Processes

Creating Real Value:
Our Story

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Business Strategy

Travel
We create travel itineraries that re ect
customers desires

Business Environment

Fiscal 2023 Review of Operations

Strengthening the core international and domestic
travel business

Stronger management base for medium- and long-term
growthIn the travel business, international and domestic travel will continue

In the travel business, with the aim of strengthening our

to be our core business, and for our group tours led by a tour guidemanagement base, we will utilize the connections that we havein particular, we will work to establish a predominant presence,

built with local governments during the pandemic, to expand andwhile also diversifying our travel models and capturing newstrengthen our solutions business for support services for local

customers over the medium and long terms. In terms of travel model

governments, and to proactively capture rising demand fromdiversiﬁcation, as well as enhancing our products that delve intoamong foreign visitors to Japan.

speciﬁc themes, we are implementing initiatives to improve our

We will also work to improve work eﬃciencies using digital

lineup of hotels and traditional inns and to increase the range oftechnologies, including expanding customer bookings via the

products for travel within Japan. For international travel, meanwhile,internet. We work with the Hankyu Hanshin DX Project to analyze

we are working to open up new tourism resources and put together

and apply customer data, and are endeavoring to raise theproducts for new countries and regions.

eﬃciency of activities to attract customers through detailed

For the period of the Medium-Term Management Plan, in line withapan s reopening expected to boost travel demand

The eﬀects of the pandemic continue to be felt, particularly withan expected recovery in international travel demand, we anticipate

After years of restrictions due to the COVID-19 pandemic, theregard to international travel, but separate to our travel business

operating proﬁt to return to pre-pandemic levels in ﬁscal 2026.

easing of restrictions on movement and of immigration regulations

we had a big increase in orders from local governments to help

has led to a gradual recovery toward pre-pandemic levels. As

support individuals recovering from COVID-19 at home, and forsuch, it is vital that we actively incorporate into our plans rising

travel within Japan, sales for tours that made use of ﬁnancial

demand among domestic and other travelers prompted by the

incentives to travel from prefectural or national governments

reopening of Japan s economy and borders. We do, however,remained strong. The result of these factors was that operating

predict that a full recovery to pre-pandemic levels will take timerevenue and proﬁt rose from the previous ﬁscal year.

due to foreign travel concerns such as the weakness of the yen
and soaring fuel surcharges.
Duringthepandemic,wereceivedordersfrom■ Revenue and Pro t

local

governments to support those recovering at home and to operate
COVID-19 recovery accommodation facilities, a business otherthan travel. Leveraging such relationships with local governments,
we believe there is signiﬁcant opportunity for business inproviding solutions to new problems and needs.

Operating revenue (left axis)(¥ billion)
200

Operating proﬁt (right axis)
191.4

205.0 (¥ billion)
20

150

15

100
50
0

33.8
0.2

60.4
12.0
‒7.4

2020
Results

2021
Results

0.4
‒5.7
2022
Results

Travel Business Non-Financial

PIs

10

15.3

5

Priority issues

0
−5

2023
2024
Results (Estimate)

−10
(FY)

Note: Since ﬁscal 2022, the Accounting Standard for Revenue Recognition
has been applied, and the presentation of operating revenue fromtravel packages has changed from net to gross amounts.
The anticipated full-year results for ﬁscal 2024 are based on
information announced on May 15, 2023.

Safe, reliableinfrastructure
Reason for action
plan based on
opportunity and risk

Summary of the Medium-Term Management Plan
Life designs for
tomorrow■ Basic Policies
Strengthen competitiveness of travel packages
Further strengthen international and domestic group tours/
Enhance high-added-value products that delve into speciﬁcthemes, etc./Win over new customers/Strengthen collaboration
with local areas

product planning and eﬀective advertising.

Strengthen management baseStrengthen the solutions business/Reinforce international
travel business/Improve eﬃciency of attracting customers/
Streamline administrative work

Reason for action
plan based on
opportunity and risk

RobustgovernanceReason for action
plan based on
opportunity and risk

Action plan
• Preparation of serious-accident responsemanual and other manuals (as necessary
revising BCPs which stipulate response tonatural disasters, in light of the intensiﬁcationof natural disasters due to climate change)• Employee and supplier training in safe
operations• Information dissemination on safe operations• Supplier assessments

Non-ﬁnancial
KPIs
Number ofaccident
reportsof serious
culpable
incidents

Target values

Scope

HankyuTravelInternational

Maintain at zero

FY2023 Actual record

0 incidents

To respond rapidly and appropriately to an accident when operating tours or upon the occurrence of a natural disaster, thereby helping to build
customer trust and bolster our brand value• Plan tours that promote local areas incoordination with local governments (longstay domestic travel, infrastructure study tours,
community-based tours that start and end in
localities, etc.)• Hold seminars through Hankyu Tabikotojuku*
that promote regional and culturaldevelopment• Support regional development throughGeneral Incorporated Association Chiiki Mirai
KikakuNumber ofcollaborating
local
governments

HankyuTravelInternational

250 per year (FY2024)

224 local governments

To strengthen mutually beneﬁcial collaboration with local governments and actively promote the appeal of the important elements of travel̶localities
and culture̶thereby contributing to regional revitalization• Conduct questionnaires of tour participants• Expand customer hot-line/customer centersystem
• Improve quality through tour monitoring by
employees and checks during the ﬁrst run of atrip
• Hold meeting on safe international travel
locally• Improve response through a call center andWeb-based inquiry service

Satisfaction
rate based onquestionnaires• Satisfaction rate (FY2031)
International/with guide: 90%
International/without guide:90%
Domestic/overnight: 85%
Domestic/day trip: 85%

HankyuTravelInternational• Customer satisfaction
International/with guide:
92%
International/without guide:87%
Domestic/overnight: 85%
Domestic/day trip: 83%

To improve satisfaction rates by directly hearing customersʼ voices and meeting diversifying needs with regard to the undeﬁnable product of travel,
thereby further boosting product value*Hankyu Tabikotojuku: lectures and workshops held by Hankyu Travel International in Tokyo, Osaka, and other parts of Japan to share helpful tips on travel
and information that makes travel more enjoyable

69

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

70

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value: The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Business Strategy

International
Transportation

Taking on the challenge of expanding our global network and entering new growth areas

We o er high-quality services on a
global basis, designing optimal logistics
solutions for customers.

The Hankyu Hanshin Holdings Group has already expanded

We are also taking on new challenges by entering new growth

into major cities around the world, but we will continue toareas. We are surveying and exploring the fast-growing area of

expand our global network and enhance services, including byinternational electronic commerce (cross-border EC) logistics,

establishing bases in regions where we anticipate new businessbuilding a distribution network to provide the logistics services

opportunities

logistics

needed for next-generation mobility (a promising new industry),

warehouses and expanding our own sea freight consolidationand expanding business in India, the Middle East, and Africa,

routes.

where large population growths are expected in the future.

emerging,

andbybuilding

more■ Our global network in the international transportation businessBusiness Environment

Fiscal 2023 Review of Operations

The role of global forwarders will take on even greater
importanceYear-on-year increases were achieved in air and sea freight

From 2020 on, the pandemic resulted in reduced airfreighthigh freight-in rates, particularly in the ﬁrst half of the ﬁscal year.

service, container shortages, and port congestion, all of which led■ Revenue and Pro t

to a severe disruption in the balance of supply and demand inoperations at all 193 business sites worldwide, fulﬁlling our role

Operating revenue (left axis)

as an essential industry that supports logistics infrastructure.

(¥ billion)(¥ billion)

180

To meet diversifying needs and resolve issues in global
logistics, we leverage the global network of Hankyu Hanshin
Express to provide comprehensive transportation services that
include high-quality, high-value-added air freight, sea freight, andlogistics. We can thus propose solutions optimized for the entire

Operating proﬁt (right axis)

143.3
120

76.2

85.6

8.0

15

163.3

8.4

107.8

60

LondonParis
Dusseldorf
Prague0.2
2020
Results

2022
Results

2023
2024
Results (Estimate)

NairobiMombasa

Johannesburg(FY)

Summary of the Medium-Term Management Plan
■ Basic Policies

Expand scale of business and strengthen competitiveness• Strengthen sales capabilities globally• Expand synergies with the Seino Holdings Group

Fortify systems to ensure robust global governancePursue initiatives in new growth elds
• Enter the area of cross-border EC logistics• Establish logistics for next-generation mobility• Expand business in Africa, the Middle East and India

turmoil in the logistics market gradually settles, we anticipate ascale of our business and strengthen our competitiveness while

return to levels prior to the impact felt by the pandemic. Throughstriving to achieve a well-balanced portfolio by reinforcing our

ﬁscal 2026 we will increase operating proﬁt by expanding thesea freight and logistics operations.

volume of items handled.

For the period of the Medium-Term Management Plan, as the71

Hankyu Hanshin Holdings Integrated Report 2023

Hanoi
Bangkok

IncheonBucheon

Kuala Lumpur
Port Klang

SeattlePortland

Seoul

Shanghai

Dubai
Taipei
Chiang Mai
Mumbai
DanangPune
YangonSricity
ChennaiBangalore
Coimbatore
Jakarta
ButterWorthTanjung Priok
PenangBekasi

DurbanSingapore

KuantanJohor Bahru

ChicagoSan Francisco
Los Angeles
Kaohsiung
Taichung

McAllenMonterrey

Manila

Davao
General Santos

Sao Paulo

Laem Chabang
Binh Duong
Ho Chi Minh
Phnom Penh

In collaboration with Hankyu Hanshin Properties, we
opened an Indonesia warehouse in 2016 and a Singapore
warehouse in 2017. We are also expanding our logistics
business in Thailand, the Philippines, Vietnam, India, andother countries, while setting up business locations acrossAsia, further enhancing our logistics structure, andexpanding our global network in growing markets.

International Transportation Business Non-Financial

Safe, reliableinfrastructure
Reason for action
plan based on
opportunity and risk

• Prepare a BCP

Non-ﬁnancial
KPIs
Rate of existenceof BCP

148 outside Japan(as of September 1, 2023)

CaviteClark
LagunaCebu

In April 2018, we acquired Intraspeed South
Africa (Pty) Ltd., a freight forwarder, as a
subsidiary; we also acquired Intraspeed s twocompanies in Kenya and Uganda as
subsidiaries. Its South African and Kenyan
companies became consolidated subsidiaries
in ﬁscal 2024.

Action plan

DetroitToronto
New Jersey● Local subsidiary
New York● Branch/Oﬃce
BostonCincinnati● Representative oﬃce
Atlanta
Dallas47 in Japan,

Mexico City

• Expansion of our Asian network, rollout oflogistics centers, and collaboration in the realestate businessPriority issues

Miami

Bajio
Queretaro• Strengthening business developmentin Africa

Reason for action
plan based on
opportunity and risk

To achieve our Long-Term Vision, we will continue to expand theHai PhongCape Town

Safe, reliableinfrastructure

Expanding the scale of our business and achieving awell-balanced business portfolio

Beijing
Guangzhou

Manesar
Neemrana Bawal
Ahmadabad

EntebbeNote: The anticipated full-year results for ﬁscal 2024 are based on
information announced on May 15, 2023.

Reform to establish a balanced business portfolio• Strengthen air freight, sea freight and logistics businesses
globally

Delhi

Kampala02021
Results

Hong Kong
MoscowFrankfurt
Milan

2.5

2.3

*A company of the Seino Holdings Group, which entered into a capital and operational tie-up with Hankyu Hanshin Express in 2018.

Amsterdam

Rotterdam
Brussels

5

supply chain of our customers.
010

The Narita International Logistics Center was established in the warehouse built by Seino Transportation*
adjacent to Narita International Airport. By cooperating with the Seino Transportation truck terminal, we haveestablished a logistics hub that combines international transportation, logistics, and domestic transportation,
and allows us to oﬀer a comprehensive range of seamless transportation services. Since the facility s opening,
we have acquired new clients and business has been growing steadily in other ways as well.

Wuhan
Chongqing
ChengduKunshanShenzhen
XiamenFuzhouZhengzhou
DalianXi an
Shenyang
Changchun Nanjing
Wuxi
TianjinSuzhouTangshanNingboQingdaoHangzhou
Yantaiforwarding in both operating revenue and proﬁt due to continued

both air and sea freight. In such circumstances, we continued• Narita Global Logistics Center commences operations

Branches/Oﬃces in China• Strengthening our business inNorth and Central America
We are expanding our logistics businessand network of business locations
throughout the U.S.A. and Mexico,
working to capture the vigorous
demand in international logistics.

PIs

Target values

100%

Scope

FY2023 Actual record

Hankyu Hanshin Express
Hankyu Hanshin Logipartners

Preparation completed byboth companies

To build systems that prevent the stoppage of distribution as an essential industry, even if an accident or natural disaster occurs, thereby increasing
trust in the business and beneﬁting society• Improve the quality of customs
clearance services

Rate of customs
errorsAbout 0.1% maintained,
which is lower than theindustry average (0.3%)

Hankyu Hanshin Express

0.06%

To pursue protective measures at ports and airports as a customs broker, thereby helping to maintain safety and security in society

Hankyu Hanshin Holdings Integrated Report 2023

72

Profile

Creating Real Value: The Foundations

03
73

Creating Real Value:
The Foundations

Hankyu Hanshin Holdings Integrated Report 2023

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

CONTENTS75

G Priority Issue 6 Robust governance83

Directors and Audit & Supervisory Committee Members

85

Outside Directors and Chairman Roundtable Discussion

89

S Priority Issue 4 Empowering individuals

91

E Priority Issue 5 Environmental protection

94

Participation in Initiatives and External Evaluation

Hankyu Hanshin Holdings Integrated Report 2023

74

Creating Real Value:
Our Story

ProfileCreating Real Value: The Foundations

Creating Real Value:
The Foundations

Creating Real Value:
The Processes

Financial Section andCorporate Data

Governance

Robust governancewhich includes representatives of the Groupʼs core businesses.
Further, to ensure transparency in the appointment anddismissal of the Companyʼs directors and to facilitate coordination

Overview of Hankyu Hanshin Holdings andthe Group s Corporate Governance Structure

Policies
Act honestly and in good faith, as stakeholders expect us to do.

Basic Approach
The Company aims to remain a company that customers and other stakeholders trust. To this end, the Company is strengthening
and increasing corporate governance by heightening the transparency and soundness of business management, complying with
relevant laws and regulations, and ensuring appropriate, timely disclosure.
Reflecting this basic approach, the Company has established the policies below with a view to adhering to the principles of our
Corporate Governance Code, sustaining growth, and enhancing corporate value over the medium to long term.
(1) We shall respect shareholdersʼ rights and ensure equality.

(2) We shall take into consideration the interests of shareholders and other stakeholders and cooperate with themappropriately.

(3) We shall disclose corporate information appropriately and ensure transparency.

(4) We shall ensure that the Board of Directors performs its roles and duties appropriately and ensure advanced oversight anddecision making.

(5) We shall have constructive dialogue with shareholders with a view to sustaining our growth and enhancing corporate value
over the medium to long term.

Compensation
Committee

Findings

Directors(excluding Audit &Supervisory Committee
members)

Board ofDirectors

Audit & Supervisory Committee

Audits, etc.

(Audit & Supervisory
Committee members)

Call/Report on
execution situation

Directors

Selection/Dismissal/Supervision

Call

the

president,

in

the

chairmanʼsabsenceormember companies. Hankyu Hanshin Holdingsʼ principal role isCompany, and is chaired by one of the outside directors.

supervision and oversight of the entire Group̶meaning that

Moreover, to ensure that concrete decisions regarding thethese functions are separate from the conduct of Groupamount of director compensation (excluding that of members ofbusinesses.

the Audit and Supervisory Committee) under the responsibility ofThrough this system, the Company realizes supervision and

the Board of Directors, are made based on objective andoversight and enhances the overall governance of the Group by:transparent

retaining the authority to approve the Companyʼs and theCompensation Committee which comprises the chairman of the(orprocedures,
the

the

president,

Company

in

the

has

establishedchairmanʼsaGroupʼs management policies and strategies, and the medium-board

term or annual management plans of all core businesses;

unavailability) and outside directors who are independent of theabsenceorrequiring timely submission of progress reports by operating

Company, and is chaired by one of the outside directors.

companies; and having Group companies obtain approval from,

In addition, as part of eﬀorts to strengthen its overall

or report to, Hankyu Hanshin Holdings before taking actions thatcapabilities, the Company is strengthening the governance ofaﬀect the Groupʼs management signiﬁcantly (for example,

funding.

investments above a certain threshold).

Company, as a rule, and promoting putting in place mechanisms

With regard to the above matters, the Board of Directors,
which includes outside directors, makes approval decisions andMeasuresincludecentralizing

funding

under

the

to distribute funds to operating companies within the limits set
out in business plans that the Company has approved.

receives reports. Moreover, to undertake preliminary reviews theReportStaff of Audit &Supervisory
Committee

FY2018Abolition of senior advisors system

Group
Auditing Division

FY2019

ReportAbolition of anti-takeover measures and Compensation Committee established• Charged with ensuring that the objectivity and transparency of procedures relating to decisions regarding board membersʼ remuneration,
including amounts. (Held once a year)

Review of compensation system

Audit

FY2020Independent outside directors● Male ● Female

FY2021

FY2023• Stock-based, performance-linked stock compensation system (paid into trust) introduced for the chairman and president (representative
directors, since fiscal 2023) in order to further motivate them to enhance the Company's corporate value and business performance, as
well as to enhance shareholder value.

Change in legal status regarding audit function• Became a “Company with an Audit & Supervisory Committee” as part of efforts to bolster the Board of Directorsʼ oversight function andenhance corporate governance.

Outside directors made chairs of both the Corporate Governance Committee and Compensation Committee

Corporate Governance Committee (6 members)

Board of Directors (11 members)
Chairman of
the Board■ FY2024 Data

Chair

Noriko Endo
(Academic)

Evaluation of the Board of Directors eﬀectiveness• A survey was carried out to assess the management by the Board of Directors, including the sufficiency of its explanations and theappropriateness of its handling of its proceedings.
(Starting in fiscal 2021, interviews are preceded by questionnaires for more effective assessment.)*The Hankyu Hanshin Holdings Group takes practical steps to enact all of the principles stipulated in the Corporate Governance Code (including elements for TSEʼs Prime Market). For
examples of specific action and other items relating to corporate governance, please refer to the Corporate Governance Report in the sustainability section of the Groupʼs website.
https://www.hankyu-hanshin.co.jp/download/sustainability/materiality/corporate/governance/info̲governance.pdf (Japanese only)

Naoya Araki• Charged with ensuring transparency of corporate director appointments and dismissals and facilitating coordination with outside officers.
(Held twice a year)

FY2017

Group Companies

Yoshishige
Shimatani

Corporate Governance Committee establishedAccounting
Auditors (CPAs)

Participate

Yuki Tsuru(Attorney atlaw)

Mitsuyoshi
Kobayashi(Manager)

Sumi

Audit & Supervisory Committee (3 members)

Endo

Tsuru

Kobayashi

Komiyama

Takahashi

Compensation Committee (6 members)

Chair

Masayoshi Ishibashi(orReportReportParticipate(as observer)Group Management Committee

Yusuke Kusu

unavailability) and outside directors who are independent of the

Accounting audit

Representative Directors

Yasuo
Shimadaboard

conduct of operations is basically the responsibility of Group

Appointment/Dismissal

Appointment/Dismissal

Appointment/Dismissal

Consultation

Hankyu Hanshin Holdings, Inc. is a pure holding company, and the

FY2016

General Meeting of Shareholders
Corporate
GovernanceCommittee

with outside directors, the Group has established the Corporate
Governance Committee, which comprises the chairman of the■ Recent Efforts to Strengthen Corporate Governance■ Corporate Governance System

Kazuo Sumi

Company has established a Group Management Committee,

Governance Structure

45.5

27.3

83.3

Proportion of independent
outside directors
on the Board of Directors

Proportion of
female members on
the Board of Directors

Proportion of independent outside directors
on the Corporate Governance Committee
and Compensation Committee

Chair
Michiari Komiyama(Attorney at law)

Yuko Takahashi(Doctor & Academic)

Sumi

Endo

Tsuru

Kobayashi

Komiyama

Takahashi(See pages 83‒84 for more details about Directors and Audit & Supervisory Committee members.)

75

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

76

Creating Real Value:
Our Story

ProfileCreating Real Value: The Foundations

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Priority Issue 6

Robust governanceEvaluation of the Board of Directors effectivenessCorporate Governance Committee(voluntarily established committee that functions as anominating committee)

More Transparent Management andE ective Governance

The Company conducts evaluations of the boardʼs effectivenessat the board meeting held in April every year.

and coordination with outside directors, the Corporate Governance

Board of Directors and Directors
The Board of Directors enhances governance of the entire Groupand oversight of respective companies by: retaining the authority
to approve decisions regarding the Company and the Groupʼsmanagement policies and strategies, and the medium-term or
annual management plans of all core businesses; and requiring
timely reporting by operating companies about Group companiesʼ

account past analysis and evaluation resultsin the chairmanʼs absence or unavailability) and outside directors

As it was suggested that information sharing about issues facing

who are independent of the Company, and is chaired by one of thecore businesses and current circumstances could be improved,

outside directors. The committee gives advice about the selection of

information given to directors about results and financial during

director candidates and the dismissal of directors (excluding Audit &the fiscal year via reports has been enhanced. Other efforts

Supervisory Committee members) to the Board of Directors and on

include thorough explanations of the background, etc., forrequest, serves as a forum to provide information in such areas asagenda items to deepen understanding. The members of thethe Groupʼs finances to outside directors.

board also visit sites to enhance their understanding of thewhom are independent directors. Members include women;

To ensure that the decision-making process for the amount of

those with knowledge, experience and skills in legal affairs andcompensation paid to directors (excluding Audit & Supervisory

risk

those

with

specialist

knowledge,

Committee members) is objective and transparent, the Compensation

experience, and skills of areas such as social and environmental.

Committee comprises the chairman of the board (or the president,

With this membership, the aim is to raise diversity, reinforce

in the chairmanʼs absences or unavailability) and outside directors

governance and oversight capabilities, and boost decision-

who are independent of the Company, and is chaired by one of the

making quality. Moreover, three directors are members of theoutside directors. The committee gives advice to the Board ofAudit & Supervisory Committee.

Directors on the Companyʼs compensation system on request.

Audit

In fiscal 2023, the Compensation Committee met twice.

Supervisory Committee and Its Members

Of the Audit & Supervisory Committeeʼs three members, two areGroup Management Committee

independent directors. By selecting committee members who

The members of the Group Management Committee include full-are independent from the Company and have a high level oftime directors (excluding Audit & Supervisory Committee members)

specialist expertise, the Company endeavors to further ensureand executive officers of the Company, and representatives of eachsound decision making. We provide full backup to enable theof the Groupʼs core businesses. The committee meets to deliberate

Audit & Supervisory Committee members to perform theirand decide on the approval of resolutions of the Board of Directors;

governance and oversight functions, for example by involving thethe Groupʼs management strategies and business plans; Group

full-time member in the Group Management Committee andcompaniesʼ

other meetings within the Group.

management matters.

significant

investments;

andsignificant

Group

In fiscal 2023, the Group Management Committee met 17 times.

Ensuring E ectiveness of the Board of Directors and Audit
Attendance at meetings of the Board of Directors and Audit

Name

Noriko Endo

Yuki Tsuru

Position

Supervisory Committee

Board of Directors

11/11

ー

Instructive comments based on a wealth of experience and knowledge
gained through research into public and government policy, and theenvironment and energy ﬁeld

11/11

ー

Instructive comments from a compliance perspectiveーInstructive comments based on a wealth of experience, perspectives, and a
track record as a manager

Director

Mitsuyoshi
Kobayashi

Director

Michiari
Komiyama

Director and Audit &Supervisory Committee
member

11/11

Yuko Takahashi

Director and Audit &Supervisory Committee
member

9/9

9/9

13/13

10/10

Hankyu Hanshin Holdings Integrated Report 2023

astocomprises

well

two

enhanceshareholder

elements:

fixed

value.

monetary

compensation paid according to position and job responsibilities,
and performance-linked stock compensation paid in trust to
representative directors.
*The Groupʼs stock-based, performance-linked stock compensation systemapplies to all three representative directors, including the Group CEO. For
all three, the system includes a malus clause, under which rights to receive
stock-based compensation may be withheld from any person eligible forthis payment who commits an egregious breach of duty prior to finalizationof such rights, or if any other grounds for withholding such rights arise.
*The payment of retirement benefits to directors was discontinued in April
2004 to heighten transparency of the compensation system.

Procedure
regarding the amount of director compensation, which are theresponsibility of the Board of Directors, are made based on
objective and transparent procedures, the Company has

is as shown below.

established a Compensation Committee comprising the chairman

1. Evaluation processunavailability) and independent outside directors, and is chairedof the board (or the president, in the chairmanʼs absence or
In fiscal 2023, all directors evaluated the adequacy of the boardʼsby one of the outside directors. The Board of Directors makes

composition and operations as a way of determining its

compensation decisions after consultation with the Compensation

effectiveness.

Committee concerning the compensation system and content ofcompensation.

■ Timeline

The

Compensation

Committee

carriesout

multifaceted reviews of the individual compensation paid to

February 2023

Individual questionnaires

directors (excluding Audit & Supervisory Committee members),

April 2023

Reports were given to the Board of Directors
on the answers to the questionnaires detailed
above, and these were discussed

including into the decision-making policy and whether it complies■ Evaluation itemwith this. It has been determined that the Board of Directors acts
in accordance with this policy and fundamentally respects thecommitteeʼs findings.

Board composition

The number and type of directors

Board operations

Schedule, selection of agenda items/report
topics, sharing of information in advance,
explanations, documents, time for deliberations,progress of discussions (particularly concerning
the Medium-Term Management Plan) andproceedings

Corporate
GovernanceCommittee/
Compensation
Committee

Composition and operation of both committees

More information on this policy can be found in the Corporate
Governance Report.
Corporate Governance Reporthttps://www.hankyu-hanshin.co.jp/download/sustainability/
materiality/corporate/governance/info̲governance.pdf(Japanese only)

Other E orts to Strengthen Governance

As a result of the questionnaire and interviews, the boardʼs
composition and operations in fiscal 2023 were deemed to beadequate, and the evaluation concluded that the board was
effective and generally administered appropriately.
Conversely, it was suggested that information sharing about
periodic follow-ups about the progress and results of the Groupʼs
investments, as well as indicators that show the current status ofcore businesses, could be improved.
Taking this into account, a study will be carried out into how
to further improve the boardʼs oversight and decision-making.

Position regarding strategic shareholdings
The Company acquires shares held for strategic reasons with aview to building relationships of trust with various stakeholders
and enhancing corporate value over the medium to long term by
maintaining business relationships or strengthening collaborations
with partner companies and maintaining relationships with
regional communities.
Individual

strategic

shareholdings

arereviewedforappropriateness each year by the Board of Directors, taking into
account economic rationales such as dividend income. Where agiven holding is deemed no longer appropriate, it is soldprogressively, with comprehensive consideration of factors such

Instructive comments from a compliance perspective

as the Companyʼs financial circumstances and the influence ofInstructive comments based on a wealth of experience and knowledge
gained through research and clinical research into public health and healthand productivity management*The office of the Board of Directors assists outside directors and the office of the Audit & Supervisory Committee assists outside directors who are Audit &Supervisory Committee members; in particular, the office of the Audit & Supervisory Committee is staffed with dedicated staff. Moreover, the office of the Boardof Directors sends out materials relating to motions to be tabled at board meetings, in principle around seven days before the meeting date, as well as its otheractivities to enhance outside directorsʼ supervision and oversight functions.

77

aseffectiveness of the Board of Directors conducted in fiscal 2023

2. Evaluation results
Statements at Board of Directors meetings, etc.

Audit & Supervisory
Committee

Director

A summary of the process and results of an evaluation of theSupervisory Committee by outside directors (FY2023)

Attendance(times attended/times held)

performance,

Based on the foregoing policies, to ensure that concrete decisions

Analysis and evaluation process for fiscal 2023

Compensation Committee (voluntarily established)

The Board of Directors is composed of 11 directors, 5 ofandGroupʼs different businesses.

times.

significant investments.

management;

Major initiatives carried out in fiscal 2023 that take into

Committee comprises the chairman of the board (or the president,

In fiscal 2023, the Corporate Governance Committee met threethem to enhance the Companyʼs corporate value and business
Compensation

To ensure transparency in the appointment and dismissal of directors

Management Organization for Decision Making,Execution, and Oversight of Matters Related toCompany Management

Audit & Supervisory Committee members) further motivates

Compensation System

stock sales on market conditions.

Compensation of Directors
Basic Policies
The Companyʼs compensation system for directors (excluding
Hankyu Hanshin Holdings Integrated Report 2023

78

Creating Real Value:
Our Story

ProfileCreating Real Value: The Foundations

Creating Real Value:
The Foundations

Creating Real Value:
The Processes

Financial Section andCorporate Data

Priority Issue 6

Robust governance■ Strategic Shareholdings Held (Taking FY2016 final levels as 100)
100
80
60
40

To ensure full awareness of this policy throughout the entire

24/7, year-round), by letter, or by telephone.
Furthermore, the desk reports each year to the Board of

the Internal Control System and clearly set forth in the Hankyu

Directors and the Audit & Supervisory Committee on its
operations; in fiscal 2023 it received sixty-nine reports fromSee the website for more details on our Anti-Corruption

Group directors and employees.

throughout the whole Group.

Policy:https://www.hankyu-hanshin.co.jp/en/corporate/compliance.
html

Should a risk become apparent through the desk, and it be20

police, and other organizations, and all Hankyu Hanshin Holdings

considered significant, the Risk Management Committee is0Group contracts contain clauses banning involvement withconvened to discuss and decide on appropriate responses.

2017

2018

2019

2020

2021

2022

2023 (end ofﬁscal year)

antisocial forces.
We also share relevant information between Group companies,

Abolition of anti-takeover measures

maintain high awareness of issues through employee training,

After considering recent trends related to such measures andand participate proactively in community meetings and activities

changes in the business environment, the Company has decided

pertaining to the elimination of organized crime and otherto abolish anti-takeover measures that have already been set toantisocial forces.

expire at the conclusion of the General Meeting of Shareholders
held in June 2018.

against corruption in all its forms, including extortion and bribery.”Hanshin Holdings Group Compliance Handbook distributed to all
Moreover, in practice, we cooperate closely with lawyers,

2016■ Corporate Ethics Consultation Desk consultation ow

Reports

If an incident occurs, we take a pan-organization approach inConsults

Consulter

response, bringing in the relevant in-house departments andResponds

Consultation
Desk

teaming up with outside experts.

Reports
Instructs

Risk Management Structure

Audit &
Supervisory
Committee
members

We have established a risk management structure to help
maintain the health of the Groupʼs management by preventing
risks from becoming reality, and at minimizing the damage if they

President

do. This structure is being constructed with reference to ISO
31000.

Investigates, calls for correction,
checks problem rectiﬁed

Evaluating risk

Departments/Group
companies

Internal Control System
Corruption Prevention and Compliance

We conduct an annual risk survey that brings to light, specifically,risks related to natural disasters (including infectious diseases),

Basic Approach to Internal Control System and
the Progress of System Development

We at the Hankyu Hanshin Holdings Group are constantly striving

We are setting up compliance promotion offices at core Group

organizational management risks, including ESG-related risks*. An

Recognizing the importance of ensuring that the businessto live up to the stakeholdersʼ expectations and become a good,companies and appointing “compliance leaders” at otherappropriate response is then determined for each, after anoperations of the Company are conducted in an appropriate

trustworthy organization. Our strong focus on compliance is one

companies to ensure our response is on a group-wide basis.

assessment of its likelihood and impact, and hypotheticalmanner, we believe it is vital to have an internal control systemof the pillars underpinning our efforts in this area.

for the entire Group, and to revise it when deemed necessary.
In particular, the Group has a robust structure for compliance-

Organizational Initiatives for Better Compliancefocused management, including a dedicated compliance office, a

We are thoroughly implementing this focus through the Group

Compliance Manual, and compliance training, all aimed at raising

Management Philosophy (as clarified in our Mission, Values, andawareness of compliance issues throughout the entire Group

Principles) and various fundamental policies and regulations that(see below for more details).

we have put in place.

As part of our whistleblower system, we have a Corporate

Of those, the Board of Directors reviews adherence to the

Ethics Consultation Desk for quickly bringing our attention to any

Principles every two years, based on employee questionnaires.

incident that may threaten our compliance-focused management.

As necessary, it also carries out periodic evaluations andIf a serious incident occurs, we promptly convene the Risk

investigations into the effectiveness of the Principles. Rather thanManagement Committee to determine how to respond.

rules set in stone, we are always considering customer and otherWe also have a Group Auditing Division, which has its own

3. Other Initiatives

accidents, information management, compliance, and otherscenario analysis.

■ Overview of Group ComplianceHankyu Hanshin Holdings●Information to Group companies●Guidance and training for Group
companies●Risk management●Risk Management Committee
secretariat●Corporate Ethics Consultation
Desk(internal whistle-blower
procedures)●Internal auditing

Compliance promotion oﬃce

*ESG-related risks:
Environment: Climate-related risk, waste/pollution risks, impact on
biodiversity, etc.
Social: Risks related to employee working environments and occupationalsafety, risk of human rights breaches or harassment, etc.
Governance: Comprehensive corruption risks, connected to unfair
business practices, insider trading, bribery, etc.

Other Group companies

Risk Management Committee and Group management

Core companies
Internal whistle-blowing, responsible forplanning and organizing seminars andother awareness-raising activities

systems

Complianceleaders

We have set an executive officer in charge of risk management,

Liaise with compliancedepartments of corecompanies

who acts as the person with responsibility for risk management.
With the aim of strengthening the effectiveness of our risk
management, the Risk Management Committee meets twice astakeholdersʼ perspectives and updating them.

dedicated staff and operates under the direct control of the

Furthermore, we have established a dedicated compliancepresident. This division establishes regulations and conducts

office in the Personnel and General Affairs Division to help bolster

internal audits of Hankyu Hanshin Holdings and its Group

compliance groupwide by pursuing three main initiatives as set

companies.

forth below.

To create a structure for ensuring appropriate operations, theyear. The committee is chaired by the president, and attended byAwareness-Raising and Training for All Officers andEmployees

full-time directors including the executive officer in charge of risk
management (excluding directors who are members of the Audit

In order to raise awareness of compliance among the Groupʼsandexecutives and other employees, we conduct various types ofrepresentatives of core businesses. This allows the Group as a

Supervisory

Committee),executive

officers,andGroup vests auditors of each Group company with authority not

1. Raising Awareness via the Compliance Handbook

training

inwhole to confirm the status of countermeasures and initiatives

only in accounting but also in operational audits, and at the same

The Compliance Handbook is distributed to all the Groupʼsparticular, helps to establish compliance that considers points offor different kinds of risks: significant risks that are common totime provides guidance to smaller Group companies on Board of

officers and employees and makes it clear that violations of law

notes

the whole Group (selected via the risk evaluations detailed above

Directorsʼ resolutions for the creation of an internal control

or social norms, or actions that betray customer trust, areshareholder, etc.) or scenario (workplace, private life, etc.), andand addressed across core business boundaries), significant riskssystem.

prohibited, and provides handy examples of likely scenarios. In

we are working on more practical education activities.

specific to individual companies (for different group companies),

With regard to systems for “Evaluation and Auditing of Internal
Controls over Financial Reports,” a section of the Financial
Instruments

andExchange

Act,

the

Company

this way, the manual is part of our effort to raise awareness of theimportance of compliance.

consolidated basis, in line with in-house rules.

Basic Approach to Eliminating Anti-social Forces
and the Progress of its Development

orfor

information
each

disclosure.

stakeholder

Compliance(customer,

training

business

partner,

Thorough Corruption Prevention

and significant risks that become apparent due to changes in theexternal environment̶shifts in socioeconomic circumstances,

We work to prevent corrupt behavior by executive and otheretc. The committee also discusses risks that have a large effect

2. Corporate Ethics Consultation Desk
(Internal Whistle-Blower Procedures)

employees (such as improper behavior that takes advantage ofon Group management, and deepens its understanding of these.

status or position, or actions that breach legal or ethical rules)

The Risk Management Committee reports to the Board of

The Corporate Ethics Consultation Desk comprises an in-housebased on a variety of regulations. Specifically, we set our Anti-

Directors each year on its analysis of risks̶including ESG-related

responds

appropriately by carrying out management evaluations on a79

on the compactʼs tenth principle: “Businesses should work

Group, it is instituted in the Basic Policy on the Establishment ofsection and an external section, which is staffed by outside

Corruption Policy, and put in place regulations and guidelines

risks̶and the operational status of risk countermeasures. The

lawyers. It enables all Hankyu Hanshin Holdings Group officers

aimed at preventing corruption, which include

Board of Directors, then, oversees management of risks that are

We have a clear policy of thorough rejection of any involvement

and employees, as well as the Groupʼs business partners, tothose aimed at stopping insider trading orimportant to the Groupʼs management, again including ESG-

with organized crime groups, companies connected with

report̶anonymously̶behavior that violates (or may violate)bribery. Then, in May 2021, we announced

relatedorganized crime groups,

racketeers, or other “antisocial

laws or regulations, or is otherwise unethical (including corruption

our agreement with the United Nations

effectiveness of risk management processes.

forces” that threaten the order and safety of civic society, andor human rights breaches includes in compliance procedures).

Global Compact; we are pushing forward

firm refusal of their unreasonable demands.

Reports can be made via a dedicated email address (available

with corruption prevention activities based

Hankyu Hanshin Holdings Integrated Report 2023

risks,

and

as

and

when

necessary,

reviews

theHankyu Hanshin Holdings Integrated Report 2023

80

Profile

Creating Real Value: The Foundations

Creating Real Value:
Our Story

Creating Real Value:
The Foundations

Creating Real Value:
The Processes

Financial Section andCorporate Data

Priority Issue 6

Robust governancePutting in place a crisis response system
Even though we work diligently to evaluate and mitigate risks, if

the shareholder holds or areas of interest) responsible executive

Acting on Feedback from Customers

5. Tax-related risk management

officers also carry out interviews.

We value feedback from customers, which we receive in via

Should any dealings for which tax interpretations are unclear

a serious risk situation materializes, a Crisis Response Team,IR staff also create reports on the content of Q&A sessions andmultiple channels, including our Listening Center and forums fortake place as part of our business activities, we take advice fromheaded by the president, is formed to respond quickly andfeedback from shareholders or institutional investors, as needed,dialogue with residentsʼ groups from communities along ouroutside experts and where needed consult with tax authorities inappropriately to contain the damage spreading and minimize theand feed this back to the management team.

railway routes. This structure is designed so that customer

advance so as to minimize tax-related risk.

When engaging in dialogue with shareholders, as well as

fallout.

Cyber-Security Measures

making major themes out of our sustainable growth and efforts

feedback is routinely shared in-house and reflected in ourbusiness.

6. Relationship with tax authorities

to enhance corporate value, we put in place a silent periodHankyu Corporation incorporates its Transit Information

We work to maintain a positive relationship with tax authorities

before announcing financial results, during which dialogue isCenter and Public Relations Dept. Listening Center into its

and respond in a timely manner to their queries accurately andbusinesses, including in its railway operations̶an important

restricted. In this and other ways we pay careful attention to how

framework for collecting and acting on customer feedback. For

honestly.

piece of infrastructure. As such ensuring cyber-security is an

we manage insider information.

its part, Hanshin Electric Railway seeks to act on feedback

The Group uses a variety of information systems in its different

important element of risk management.
As a cyber-security measure for these kinds of information
systems, we have established regulations and systems for eachGroup company based on Fundamental Policies on Electronic
Information Security. Furthermore, we periodically carry out
director and employee training, information security evaluations,inspections, and improvements. At the same time, we actively
cooperate with local authorities and other relevant organizations
to collect data. In these ways, we are continuously working toprevent information security incidents.
However, should an incident occur, we would quickly
communicate this and respond, and establish a CSIRT* toappropriately prevent its spread and ensure no reoccurrence.
*Computer Security Incident Response TeamRe ecting Stakeholder Sentiment in
Operations
At the Hankyu Hanshin Holdings Group, we believe that the viewsof our stakeholders̶including customers, local communities,
shareholders, trading partners, and employees̶have an important

Dialogue with shareholders
In accordance with the policy above, the president or the
executive officer in charge of the Group Planning Division

respondout a total of around 110 individual interviews with institutional

appropriate, and the results are subsequently used to improve

investors and analysts from Japan and abroad in fiscal 2023.

our businesses.

As part of dialogue with shareholders, in addition to overviewsof financial results and performance forecasts, main themes

Total

FY2021

19.4

0.3

19.8

FY2022

-11.1

0.9

-10.1

FY2023

9.6

2.3

11.9

*Tax paid is a combined figure for both national and regional taxes. The
figures given above are based on country-specific reports and are notdirectly connected to our consolidated financial statements.

Approach to Intellectual Property
The intellectual properties that we have built up through our

documents, to help further raise understanding by shareholders.

business activities over many years̶including our brands,

Respecting Stakeholders Positions
Realizing our mission to create satisfaction among our customers
and contribute to society by delivering safety, comfort, dreams,
and excitement involves the ongoing pursuit of sustained growthunderpinned by an active commitment to ESG.
In May 2020, we launched the Hankyu Hanshin Holdings Group
we intend to contribute to more sustainable use of resources

avoid scheduling clashes with other companies, using online

overcoming the challenges we all face as a society.

voting platforms, posting convocation and resolution notices

Our social contribution activities, such as environmental and(including English versions) on our website, and improving thecommunity action, have benefited from the institution of a clear

voting experience for institutional investors.

Group policy and the establishment of a dedicated department

about our business strategies and financial policies. IR staff holdOverseas

We are striving to make improvements, such as enhancing these

trading partners, employees, and other stakeholders, and to use

and other ways we implement activities to deepen understandingJapanwith the themes above are added to financial briefing documents.

the Hankyu Hanshin Holdings Groupʼs businesses as a vehicle for

For shareholders, we disclose information via our website,

Acting on Feedback from Experts

provided by a broad variety of experts, including professors, civic

exercise their voting rights. These include timing meetings towhile for institutional investors we hold regular briefings, in theseasgroups, and investors.

meetings more rigorous and make it easier for shareholders toactivities.

feedback

are fed back to the management team each quarter. Based on

ramp up ESG initiatives, to further solidify the relationship of trust

affairs, legal affairs, and PR departments, and promotes IR

otherthese kinds of dialogue, executive summaries or content in line

we enjoy with customers, local communities, shareholders,

information and collaborate with finance, accounting, generalandThe priority issues relating to sustainable management set forth

We have adopted a variety of initiatives to make shareholder

The division has dedicated IR staff, who regularly sharequestions,in the Materiality Matrix (see page 45) reflect the diverse views

across society. The declaration sets forth our determination to

takes overall control of IR activities.

opinions,

include medium- and long-term growth strategies and the status

Initiatives to energize shareholder meetings and improveease of exercising voting rights

shareholders, and the executive officer in charge of the division

toof management that focuses on capital efficiency. These contents

Sustainability Declaration (see page 45), a clear indication of how

The Group Planning Division is responsible for dialogue with

Alongside the pertinent departments, we investigate and(¥ billion)■ Amount of Tax Paid

as well as through its website and the efforts of its communications
staff.

attended quarterly financial results briefings, and IR staff carriedplace in our business operations.

Investor Relations
IR activities policy

collected by its public relations office and at its various facilities,

within the Personnel and General Affairs Division, and our efforts
in this area are guided by the Sustainability Declaration. Moreover,
we publish the Sustainability Data Book to present the results ofmajor activities, as well as our future policies and plans, alongside
putting details on the Hankyu Hanshin Holdings website
for details.
https://www.hankyu-hanshin.co.jp/en/sustainability/

Taxation Transparency (Tax Policy)
1. Fundamental policy

trademarks, and confidential management assets such as writtenmaterials and expertise̶are important corporate assets to the
Hankyu Hanshin Holdings Group. As such, we will endeavor to

The Group wishes to remain a corporate group that has the trust

create new intellectual properties, both to provide products andof its customers and the rest of society. To this end, we areservices that customers can choose with peace of mind and tostrengthening and enhancing our corporate governance byappropriately distribute as a management asset to support future

further raising the level of transparency and soundness of ourbusiness expansion. To those ends, it is imperative that webusiness management, complying with laws and regulations, andmanage and use these assets appropriately.

disclosing information in an appropriate manner and at a suitable
time.
This fundamental approach will guide us as we aim to bothcontribute to society by paying a reasonable amount of tax andBased on that approach, we will manage intellectual properties
in the ways outlined below so as to raise their value even further.
We also have the utmost respect for intellectual properties
that belong to third parties.

achieve sustainable growth and greater corporate value in themedium to long term.

2. Compliance with tax laws and regulations
As well as complying with laws and regulations pertaining totaxation, we will report and pay taxes appropriately and thereby
fulfill our corporate social responsibility.

3. Tax planning
The scope of our tax planning is based on our business objectives
and actual performance and we are working to improve corporate
value through the effective use of tax incentives and othermeasures. Our tax planning is not conducted with the aim of tax
avoidance.

4. Tax governanceCorporate governance of taxation is covered by our group-wide(1) We will not only work to avoid or prevent the infringement of
the intellectual properties we have created, but will acquire
rights so as to support the expansion of our business activities
and use these intellectual properties actively and strategicallyin our businesses.
(2) Where third parties, including business partners, wish to dobusiness that involves the use of our intellectual properties,
we

will

make

our

permission

mandatory

andensurepermission is dependent on the contents of that use after anappropriate investigation.
(3) Where we confirm that a third party has, or may have,infringed upon our intellectual property rights, we will takeserious actions.

governance system. We have an oversight system in place, underwhich tax-related risks are reported to the Board of Directors andAudit & Supervisory Committee as appropriate.

dialogue (via interviews) with shareholders, but where necessary(taking into consideration factors such as the number of shares

81

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

82

Creating Real Value:
Our Story

ProfileCreating Real Value: The Foundations

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Directors and Audit & Supervisory Committee Members
As of June 16, 2023

Directors

Outside director

OutsideKazuo Sumi

Chairman and Representative Director,
Group Chief Executive Officer

1973

Joined Hankyu Corporation

2000

Director, Hankyu Corporation

2002

Managing Director, Hankyu Corporation

2003

President, Hankyu Corporation

2005

President, Hankyu Holdings, Inc.

2006

President, Hankyu Hanshin Holdings, Inc.

2014

Chairman, Hankyu Corporation

2017

Chairman, Group CEO, Hankyu Hanshin Holdings,
Inc. (Current position)

2021

Director, Hankyu Travel International Co., Ltd.
(Current position)

Yasuo Shimada

President and Representative Director
1988

Joined Hankyu Corporation

2019

Director, Hankyu Corporation

2021

Managing Director, Hankyu Corporation

2022

President, Hankyu Corporation (Current position)

2022

Director, Hanshin Electric Railway Co., Ltd.
(Current position)

2022

Director, Hankyu Travel International Co., Ltd.
(Current position)

2022

Executive Vice President, Hankyu Hanshin
Holdings, Inc.

2023

President, Hankyu Hanshin Holdings, Inc.
(Current position)

2023

Directors, Audit & Supervisory Committee Members

Independent oﬃcer

Independent

Yusuke Kusu

Executive Vice President andRepresentative Director
1984

Joined Hanshin Electric Railway Co., Ltd.

2013

Director, Hanshin Electric Railway Co., Ltd.

2017

Managing Director, Hanshin Electric Railway Co., Ltd.

2020

Senior Managing Director, Hanshin Electric Railway Co., Ltd.

2023

President, Hanshin Electric Railway Co., Ltd.
(Current position)

2023

Director, Hankyu Corporation (Current position)

2023

Executive Vice President, Hankyu Hanshin Holdings, Inc.
(Current position)

2023

Michiari Komiyama

Masayoshi Ishibashi

Director, Audit & Supervisory Committee
Member (Full-time)
1979

Joined Hanshin Electric Railway Co., Ltd.

2013

Standing auditor, Hanshin Electric Railway
Co., Ltd. (Current position)

2013

Standing auditor, Hankyu Hanshin Holdings,
Inc.

2020

Director, Audit & Supervisory Committee
Member (Full-time), Hankyu Hanshin
Holdings, Inc. (Current position)

Director, Hankyu Hanshin Properties Corp.
(Current position)

Director, Hankyu Hanshin Express Co., Ltd.

OutsideOutsideDirector, Audit & Supervisory Committee
Member (Outside director*)

1971

Prosecutor

1978

Joined Kyoto University Hospital

1999

Prosecutor, Supreme Public Prosecutorʼs Office

1986

Head of Internal Medicine, Yamato Koriyama Hospital

1999

Chief Prosecutor, Saga District Public Prosecutorʼs Office

1994

Head of Internal Medicine, Yamato Takada Municipal Hospital

2002

Chief Prosecutor, Kobe District Public Prosecutorʼs Office

2001

Head of Smoking Cessation Outpatient Services, Kyoto

2003

Notary, Osaka Legal Affairs Bureau

2013

Attorney at law (Current position)

2002

2017

Auditor, Hankyu Hanshin Holdings, Inc.

2003

Professor, Graduate School of Humanities and Sciences, Health

2017

Auditor, Hankyu Corporation (Current position)

2020

Director, Audit & Supervisory Committee Member,

2007

Visiting Head of the Clinical Research Center, National Hospital

University Hospital (Current position)(Current position)

Professor, Health Care Center of Nara Womenʼs University
Care Center of Nara Womenʼs University

Hankyu Hanshin Holdings, Inc. (Current position)*Ms. Noriko Endo, Ms. Yuki Tsuru, Mr. Mitsuyoshi Kobayashi, Mr. Michiari Komiyama, and Ms. Yuko Takahashi satisfy thequalifications of outside directors as provided in Article 2, Paragraph 15 of the Companies Act. The Company has submitted
notifications to the stock exchanges on which its shares are listed, naming Ms. Endo, Ms. Tsuru, Mr. Kobayashi,
Mr. Komiyama, and Ms. Takahashi as independent officers.

Director, Hankyu Hanshin Properties Corp.

Independent

Director, Audit & Supervisory Committee
Member (Outside director*)(Current position)
2023

Yuko Takahashi

Independent

Organization Kyoto Medical Center (Current position)
2016

Specially Appointed Professor, Graduate School of Medicine,
Kyoto University (Current position)

2022

Director, Audit & Supervisory Committee Member, Hankyu
Hanshin Holdings, Inc. (Current position)

Board of Directors Skills Matrix

Noriko Endo

OutsideIndependent

Director (Outside director*)
1994

Joined DIAMOND, Inc.

2013

Visiting Researcher, Policy Alternatives
Research Institute, the University of Tokyo

2015

Project Professor, Graduate School of Media

Yuki Tsuru

OutsideIndependent

Director (Outside director*)
2000 Attorney at law (Current position)2016 Auditor of Hitotsubashi University
2020 Director, Hankyu Hanshin Holdings, Inc.
(Current position)

and Governance, Keio University
2019

OutsideDirector, Hankyu Hanshin Holdings, Inc.

Independent

Director (Outside director*)
1982

Joined Nippon Telegraph and Telephone Public
Corporation

2018

President and Representative Director, Nippon Telegraphand Telephone West Corporation(Current position)
2020

Mitsuyoshi Kobayashi

2021

Project professor at the Keio University

Corporate
management

Finance Accounting

Legal a airs
Risk management

Kazuo
Sumi

●

●

●

Yasuo
Shimada●●YusukeKusu●●

NorikoEndo

2022

Director, Hankyu Hanshin Holdings, Inc. (Current position)

E

2022

Advisor, Nippon Telegraph and Telephone West

Yuki
Tsuru

OutsideIndependent
Independent

Mitsuyoshi
Kobayashi

OutsideIndependent
Independent

Yoshishige Shimatani

Naoya Araki

1975

Joined TOHO CO., LTD.

1981

Joined Hankyu Department Store, Inc.

2011

President, TOHO CO., LTD.

2012

President, Hankyu Hanshin Department Stores, Inc.

2015

Director, Hankyu Hanshin Holdings, Inc.

2012

Representative Director, H2O RETAILING CORPORATION

2017

Director, Hankyu Hanshin Holdings, Inc. (Current position)

2020

President and Representative Director, H2O

Representative Director and President, President
and Executive Officer, TOHO CO., LTD.

2022

Representative Director and Chairperson,
TOHO CO., LTD. (Current position)

83

Hankyu Hanshin Holdings Integrated Report 2023

◎

◎

Naoya
Araki

◎
Audit & Supervisory Committee member

Michiari
Komiyama

Audit & Supervisory Committee member

Yuko
Takahashi

Audit & Supervisory Committee member

OutsideIndependent

◎ DX

◎

Yoshishige
Shimatani

Masayoshi
Ishibashi

2021

Public policy
Environment/Energy

Independent
Independent

President, Representative Director, and Executive Officer,

Corporation (Current position)(Current position)◎

OutsideNippon Telegraph and Telephone West Corporation

Global Research Institute (Current position)

Director (Part-time)

Specialist knowledge(including
social environment)●●◎

Director (Part-time)◎

OutsideIndependent

Public health
Health and productivity
management

S

RETAILING CORPORATION (Current position)
2020

Chairman, Hankyu Hanshin Department Stores, Inc.
(Current position)●…Major knowledge, experience, and capabilities of those who have come up through the Group◎…Knowledge, experience, and capabilities expected of directors, excluding the above ( S and E represent social and environmental specialisms respectively.)*The matrix above does not represent the total knowledge, experience, and capabilities of each director.

Hankyu Hanshin Holdings Integrated Report 2023

84

Creating Real Value:
Our Story

ProfileCreating Real Value: The Foundations

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Outside Directors and Chairman

Roundtable
Discussion

was common for companies to emphasize
carbon-neutral initiatives as purely as asocialKazuo Sumi

responsibility,ifanything

they

thought of it as just another cost. Goingforward, though, as we progress toward

Chairman and
Representative Director,
Group Chief ExecutiveOﬃcer

carbon neutrality, we need to think of it
as a business opportunity, and take theviewpoint that it can encourage innovationand lead to profit. I would like theCompany

to

be

more

proactiveinpublicizing these kinds of initiatives to

Noriko Endo

Yuki Tsuru

Outside Director

Outside Director

investors and society. I think we stand at
a turning point where the relationshipbetween making society carbon neutral

I d like to see

the Company use

carbon neutrality asa springboard tocorporate value.

and companies is shifting from a mere
cost to be borne, to new businesschances.
Sumi As well as investors, financial institutions have also
started strictly assessing efforts toward carbon neutrality,
and the pace seems to have picked up overnight.
Endo Yes, it is certainly true that ratings and requests frominvestors and funding institutions concerning equity and debt
are becoming more stringent. But we should not be actively
reacting to this just because it is our duty, we need to takethe approach of using carbon neutrality as a springboard to
growth.
Tsuru Thatʼs right. In 2023, the Company introduced internal

Sustainable management:
present and future as seen by outside directors
Two of our outside directors spoke to our chairman, Kazuo Sumi, about the sustainable management we promote in linewith our Sustainability Declaration, and exchanged ideas based on its current state and issues from their perspectives as
outside directors.

carbon pricing (ICP). With this we can visualize costs, andaim to improve business performance, but it can also lead torising corporate value.
Endo Yes, ICP allows companies to quantify costs, including
for the carbon taxes that may be introduced in the future. I
think itʼs also an effective motivational tool for encouraging
businesses to invest more in reducing CO₂. Hankyu Hanshin
Holdings is actively incorporating new methods like this andis disclosing its Scope 3 emissions, and I think itʼs fair to say
the Company is leading the industry in terms of contributing
to carbon neutrality. From the standpoint of governance,

CO₂ emissions.

too, there are regular reports about the status of sustainable

Sumi In our Long-Term Vision, which we updated in May

management initiatives, which include actions toward carbon

2022, with the aim of ensuring the 1.5 C temperature rise

neutrality. I think we are succeeding, through discussions

Sumi Thinking back to the fierce heat we had this summer,

scenario found in the Paris Agreement comes to pass, weand similar, in sharing the Companyʼs direction.

it is impossible to say where the impact of global warming

announced a new our CO₂ emissions reduction target to net

will end. I would like to ask you, Ms. Endo, as an expert inzero by fiscal 2051, and̶as a stepping stone toward that̶

Duty as a company to work toward acarbon-neutral society

85

Tsuru I agree. In Europe, companiesʼ efforts to tackle humanrights problems are becoming much stronger, and they
enforce strict checks on the possibility of human rights
infringements or child labor throughout the entire supply
chain, right from the contract stage. This trend may well
expand worldwide, so I think that the fact the Company has
reviewed its basic policy can be seen as a way of accurately
grasping the way in which the times are changing.
Sumi Youʼre talking about the Basic Philosophy on Respectfor Human Rights and Basic Policy on Respect for Human
Rights (see page 89), which we revised in April 2023 to take
into account the UNʼs Guiding Principles on Business andHuman Rights.
Tsuru Yes. While there are lots of companies in Japan thatlook at human rights problems from a domestic standpoint, I
think efforts like that, which take a more global perspective,
are a big first step.
Endo Hankyu

HanshinHoldings

already

operatesaninternational transportation business, and is looking to
expand its overseas real estate business. I think the Company
does, therefore, have to look at things from a global
perspective. It has always been a company rooted in its
community, though, and I think there have been few chances
for it to really advocate global management. This is something
the Company will have to overcome, and I hope it will pushforward with initiatives as a global company.
Sumi We theorize various different risks, and of those,

Issues standing in the way of becoming a
global company

environmental and energy policy, how do you thinkrevised our target for fiscal 2031 to a 46% reduction fromcompanies should respond to climate change?

fiscal 2014 levels.

Endo Developed nations, in particular, are positioning

Endo As a company rooted in its community, but well-

reducing greenhouse gas emissions as a major issue. Hankyu

known across Japan, having Hankyu Hanshin Holdings push

Sumi Speaking of governance, I think that risk management

Hanshin Holdings has taken on board the Japanese

this kind of initiative has real meaning for society.

is an important issue. For example, for risks related to humangovernmentʼs targets to achieve the goals of the ParisOn the other hand, sustainably enhancing corporate value

rights, I have seen example of even Japanese companies

Agreement, and is actively promoting efforts to reduce its

by increasing profit is another important duty. In the past, it

actively working on human rights due diligence. I think that it

Hankyu Hanshin Holdings Integrated Report 2023

is a topic that is gaining a great deal of interest from society.

preventing the risk of human rights infringements before theyoccur is something that requires more efforts. In terms ofactual business affairs, we need to work steadily one step at
a time, and work our way up to a global level as best we can.
Tsuru Quite so. This is something that includes workplace
responses and fostering awareness, and so cannot be
achieved in a short time. The Company identifies major risks

Hankyu Hanshin Holdings Integrated Report 2023

86

and issues, and I too think that is
important to address these one by one.
Sumi A different risk that also needs tobe addressed is corruption. In March
2022, we formulated our Anti-Corruption
Policy, and then in September this year
we put in place rules and operationalguidelines to prevent corruption. Between
these

and

workingtoothermeasures,furtherwearestrengthen

theCreating Real Value:
Our Story

ProfileCreating Real Value: The Foundations

Relationships of trust,forged throughcommunication, arethe foundation of good
governance.

initiatives we already have.
Tsuru The ban on corruption is clearly
defined in law, but personally I think that

Creating Real Value:
The Processes

population, and energetically expanding internationally.

active role in fighting for gender equality and female

Surely by fusing the significance of its history, with the energy

empowerment, and I think it somewhat mirrors the approachof innovation, the Company will be able to take a great leap

to female participation that the Company takes. By taking on

forward. I think my responsibility as a director is to provide

the principles of the HeForShe movement, companies canwhat knowledge I have to help it grow to become anenhance their corporate value as advocates for gender

exemplar of a global company, not just a Japanese company.

equality, and at the same time raise employee satisfaction

Tsuru I did my legal training in Osaka, and at that time I had

and motivation.

real fondness for the Hankyu Department Store and theSumi One of the missions of any company is to put in place

Hotel Hankyu International. Likewise, when I visited Kyoto, I

environments where anyone, regardless of gender, can fulfill

would take Hankyu trains. So, when I was offered thetheir potential. It is also the key to sustainable growth, which

position of director here, I really felt it was a great honor tois linked to engagement and corporate value. In fact, even on

be associated with this kind of company.

actively helping to run the Company.

corruption that does not end with legal

Hanshin Koshien Stadium, and I was reminded anew of themuch wider sense. Companies with ethical problems, even if

energy is the spark from which corporate value comes, andthey do not formally break the law, cannot survive in theso I believe our responsibility as managers is to do what webusiness world. In Europe or North America, many contracts

can to improve employee engagement.
Infiscal2024,

HankyuHanshinHoldings

addedCompany too, in the basic policy you touched on earlier, issustainability targets to the scripts for interviews where

sufficiently aware of the problem of corrupt behavior. In theemployees talk about their targets each year. Each employee

future, I have great expectations for even more effective

considers what sustainable management really means, andinitiatives, that take a more global perspective.

what they themselves can do. Having them put this into

Sumi What do you think we need to do to raise thewords is helping to clarify awareness and attitudes towards

effectiveness of our efforts to prevent corruption?

sustainable management.

Tsuru As well as educating employees about the issue, I

Tsuru That

think you need adequate communication with businessemployees can understand it for themselves, rather thanpartners. If the Company can build relationships of trust

being told to think.

through dialogue, such things are one-way demands for

Sumi Before they suddenly have to consider it themselves, I

suppliers will become unnecessary. The importance ofwould like them to properly understand how it stands in

dialogue does not end with preventing corruption. Proactive,

Japan. For example, the phenomenon of low birthrates andgenerous communication through various channels will build

a rising average age is steadily worsening. I want to share thethose relationships of trust, and if the Company can do this it

sense of danger that one day the workforce will be far lesswill lead to improper conduct being prevented, and a better

than is needed, and for everyone in the Group to join me ingovernance system.

understanding that companies have to face societal problems

sounds

like

a

good

opportunity,

where

like these head-on. It should go without saying, but thePeople power drives forward sustainablegrowthsolution lies in greater female participation and improved
productivity.
Endo The management here does not just pursue higher
share values and profits, I get the impression that it earnestly

87

Endo When it promotes its sustainable management, theconfronts more substantial societal issues, and thinks

Company properly involves its business and employees in its

seriously about what the Company can do, and acts

initiatives, through means such as setting original, non-accordingly. I think that it feels the weight of its long history

financial KPIs for each of its business areas, that match theon its shoulders.

characteristics of a company that has expanded into varied

Tsuru In actuality, the Company has many active female

businesses, and by linking these in to its Medium-Termmanagers; I can feel the long history of working toward

Management Plan.

diversity. I do think, though, that there is still room for

Sumi Of the various KPIs we use, the one Iʼm most focused

improvement, and I would like the Company to continue

on is employee satisfaction. Happier employees lead todeveloping fields and environments in which women can beproducts and services that make customers happy. Employee

more active.

Hankyu Hanshin Holdings Integrated Report 2023

After taking up the role, I got to experience for myself theemotions of the Takarazuka Revue and the passion ofbreaches, but prevents corruption in a

already feature clauses covering corruption prevention. The

Financial Section andCorporate Data

Endo Thereʼs the term “HeForShe.” It refers to men taking an

the Board of Directors, you two are just some of the women

there is a need for a fight against

Creating Real Value:
The Foundations

Board of Directors operations that look toensure fairness and transparency

appeal that the Group holds, which it can do because it is anentertainment pro, but also a company that makes peopleʼs
lives richer, through trains, shopping, and even hotels andreal estate. The entertainment business in particular, hasEndo The Board of Directors provides a space where

expanded with a focus on Japan, but the content works

everyone, including us, can speak our minds freely.

internationally so surely demand will grow even further.
In the future, I would like to see the Company publicize its

Tsuru I think so, too. Of course, discussions are openminded, and there is a positive sense of urgency to

dreams and excitement for the world. There are many

proceedings. The content of those discussions too is

obstacles in the path to becoming a truly global company,

interesting and engaging, and we too can voice ourbut as a director, I will use my specialist knowledge and try

opinions̶it is very rewarding. Each time we meet, necessary

to lead discussions with the goal of keeping risks to a

documents are collated in an easy-to-understand manner,

minimum and maintaining compliance.

and we are able to have effective debates.

Sumi I am extremely reassured by what you have said; I

Sumi Ms. Endo as chair of the Corporate Governancehave great hopes for both of you.

Committee and the Compensation Committee, what do you
aim to do?
Endo The

role

of

both

committees

is

to

raise

the

transparency of the Companyʼs personnel affairs andremuneration systems, and I think that having an outside
director, in this case myself since fiscal 2023, as chair forboth has helped to enhance transparency
and fairness. I honestly believe that toimprove governance, sharing informationand ensuring transparency is vital. As
chair,

I

want

to

continueplacing

importance on objective perspectives,devoid of prejudgments, as I manage thecommittees.
Sumi Lastly, do you both have anything
you would like to say to our investors?
Endo This is a company with layers of
tradition, and that continues to maintain

The source of corporate
value is people power.
One of the

responsibilities of amanagement team is

to improve employee
engagement.

significant brand value. But as well as
treasuring that history, it is boldly taking
on the challenges posed by societal
issuessuchasJapanʼsshrinkingHankyu Hanshin Holdings Integrated Report 2023

88

Creating Real Value:
Our Story

ProfileCreating Real Value: The Foundations

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

SocialEmpowering individuals

T OPICS

Hankyu Hanshin Holdings Group Social Contribution Activity

Hankyu Hanshin Dreams and Communities of the Future ProjectAs part of the Groupʼs commitment to creating communities that people will truly want to live in,

Policies

we have operated the Hankyu Hanshin Dreams and Communities of the Future Project since 2009.
The project, which focuses chiefly on developing environment-friendly regional environments
and tomorrowʼs leaders, is one of our eﬀorts aimed at helping meet the SDGs as outlined in theProvide an inclusive workplace that values diversity and taps into individual talent.

Sustainability Declaration we unveiled in May 2020.

Cultivate tomorrow s leaders for society.

Basic Policy

Non-Financial

PIs

Non-ﬁnancial KPIs

Target value

Scope

FY2023 result

Employee satisfaction

Always better than inprevious survey(conducted biennially)

Hankyu Hanshin Holdings and the six major companies*

3.57(on a ﬁve-point scale)(FY2022 results)

Percentage of women in management positions

Improved to around 10% in FY2031

Hankyu Hanshin Holdings and the six major companies

5.6%

Percentage of women among new hires

Always 30% or more

Hankyu Hanshin Holdings and the six major companies

34.6%

Speciﬁc health guidance implementation rate

60% or more in FY2026

Hankyu Hanshin Holdings and the six major companies

55.8%

Smoking prevalence

15% or less in FY2026

Hankyu Hanshin Holdings and the six major companies

18.7%

Paternity leave uptake rate

100% in FY2026

Hankyu Hanshin Holdings and the six major companies

94.8%

Employment rate of people with disabilities

Always at or above statutory employment rate

19 special subsidiaries

3.05%

Rate of participation in human rights training(level-speciﬁc training mainly conducted byHankyu Hanshin Holdings)

Always 100%

Hankyu Hanshin Holdings and six major companies

100%

Collaboration with companies

We intend to promote the creation of communities along our

We promote the CSR activities of our Group companies through public

line-side areas that people will truly want to live in.

relations, sponsorships, and additional contributions. In fiscal 2023, 107
initiatives were carried out groupwide (105 in fiscal 2022).

Priority Fields

For example, the One-million Candle Night event as part of

Sustainable Community
Development
Developing communities
sustainably

To bring about our Long-Term Vision, are putting in place acooperation

between

For more details on our approach to human capital̶including
our personnel strategy̶and non-ﬁnancial KPIs, see page 47 onward.

andFuture Fund. By the end of fiscal 2023, 183 institutions have received a
total of 109.06 million yen. This local support program has led to our① Promotion of CSR activities at
each Group company

collaboration withcompanies② Support for civic groups
through ﬁnancial assistance andcooperation in public relations③ Promotion of social contribution
initiatives by current and past
Group employees

collaboration with
employees

through various projects.

Collaboration with Group employees
As a support for current and past employees to join or continuously
engage in community activities voluntarily, we distribute information
through Group magazines and mail magazines and provide opportunities
for volunteering inside and outside the Company. In fiscal 2023, thenumber of participants in volunteer activities reached 5,861.

As part of the Hankyu Hanshin Dreams and Communities of theCase study

Dreams and Communities of the Future SDGs Trains

Future Project, we provide career education programs for

To commemorate a decade of these project initiatives, in May 2019, we launched theelementary school children. Our Hankyu Hanshin Dreams andDreams and Communities of the Future SDGs Trains, which disseminate a variety ofCommunities

andmessages to help achieve the SDGs. We have been running these trains in cooperation

Communities Exciting Work Program received the Ministerʼswith governments, municipalities, companies, civic groups, and other bodies. The

Challenge

Troop

and

HankyuDreamsThree Human Resources Strategies

Award (Grand Prix) at the 8th Career Education Awards held byexternal appearance of the trains features illustrations inspired by the SDGs, while

Strategy 1

Develop Highly Engaged Personnel

the Ministry of Economy, Trade, and Industry in ﬁscal 2018, andinside the trains posters and stickers are also all related to the SDGs.

Strategy 2

Assemble Diverse Talent to Help Create New Value

the highest award (the Ministerʼs Award) at the Youth Experience

Since September 2020, we have been operating the trains in collaboration with theActivity Promotion Company Award sponsored by the Ministry

Tokyu Group, and the energy used to run the trains is sourced entirely (effectively

Strategy 3

Secure Personnel to Promote and Implement D in the Groupof Education, Culture, Sports, Science and Technology in ﬁscal

100%) from renewable sources, as well as other initiatives.

Basic philosophy and policy on respect forhuman rights revised
At the Hankyu Hanshin Holdings Group, we work hard to ensure
across-the-board respect for human rights. To ensure all employees
understand our stance, we have compiled a written Basic
Philosophy on Respect for Human Rights and Basic Policy on
Respect for Human Rights.

In December 2020, these linked efforts were well-received and presented with a

2021.

Hankyu Hanshin Dreams and Communities Challenge Troop

Hanshin Koshien Stadium and other venues, we offer elementary
school students summer vacation learning experiences in a variety of

The Dreams and Communities of
the Future SDGs Trains underwent a
design renewal in April 2022

real-world work settings. Up to fiscal 2023, we have hosted overHankyu Hanshin Dreams and Communities of the Future Project Website ( apanese only)
https://www.hankyu-hanshin.co.jp/yume-machi/

19,000 children across 459
programs so far.

For more details on our approach to ESG issues, targets, initiatives, and other data, see our Sustainability
Data Book.

https://www.hankyu-hanshin.co.jp/en/sustainability/

Rights and other standards, and we will continue to implement● Social themes: … Respect for human rights, safety and security initiatives, contribution to the local communities

human rights due diligence and work to avoid and reduce negative

Hankyu Hanshin Holdings Integrated Report 2023

We plan to continue these initiatives until EXPO 2025 in Osaka, Kansai.

resources at railway stations, hotels, the Takarazuka Revue, andon the United Nations Guiding Principles on Business and Human

impacts on human rights.

Special Award (SDGs Partnership Award) at the 4th Japan SDGs Award.

Through our businesses and facilities, and utilizing our human

In April 2023, we revised our basic philosophy and policy based

89

communities,

Cultivate tomorrow s leaders

Furthermore, we have set non-ﬁnancial KPIs to help strategicallyindividual.

local

the Company via the Hankyu Hanshin Dreams and Communities of theworking with civic groups as urban environment-building partners

collaboration with local
communities

hire and develop the personnel we need for to advance ourmanagement strategies, and maximize the performance of every

companies,

employees.

personnel strategy that is coordinated with the vision to further

Collaboration with local community
We subsidize citizenʼs groups in the Hankyu Hanshin service area throughdonations raised by our employees and additional contributions from

We are conducting a variety of activities supported by

See our basic philosophy and policy on respect for humanrights athttps://www.hankyu-hanshin.co.jp/sustainability/
materiality/human/rights/ (Japanese only)

enhance our human capital.

Communities of the Future Challenge Troop (see page 89).

Developing those who
responsible for the communitiesof the future

Main activities*Six major companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin Express, andHankyu Hanshin Hotels

Enhance our human capital

Nishiumeda Night in Osaka City, and the Hankyu Hanshin Dreams andTomorrow s Leader
Development

and society, employment and labor initiatives, and occupational safety and healthCreating a cable TV program

Hankyu Hanshin Holdings Integrated Report 2023

90

Creating Real Value:
Our Story

ProfileCreating Real Value: The Foundations

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Environment

Environmental protection

Aim for more eco-friendly buildings
Alongside energy-saving measures, we are promoting activities to

Policies

introduce

renewable

environmental

energy,performance,

attainand

ZEB/ZEH-standard

acquireenvironmental

acquisition.

Conduct eco activities that contribute to a carbon-neutral world and a circular economy.

Acquisition of Environmental Certi cation
The Group is increasing efforts to acquire certification designed

Basic Environmental Philosophy

Basic Environmental Policies

Mindful that global environmental preservation is a task facing all

1. We will monitor the environmental impact of our business activities and takemankind, the Hankyu Hanshin Holdings Group works for asustainable society through environmental activities aimed athanding down a sounder global and human environment to thenext generation.

action to reduce it.
2. We will accurately understand environmental laws and regulations andother social requirements and comply with them.
3. We will strive to raise employeesʼ awareness so that every employee will beable to act in an environmentally sustainable manner.

Major Non-Financial

offices to be newly built and commercial buildings.
*Environmental certiﬁcation systems such as DBJ, CASBEE, and BELS

DB Green Building certified buildings
Hankyu Nishinomiya Gardens: 5 stars

PIs

Produce less waste and recycle more

• Osaka Umeda Twin Towers South andWe have set ourselves the task of promoting environmental• HEP FIVE: 4 stars• Kobe Sannomiya Hankyu Building: 3 stars

Non-Financial KPIs
Rate of CO₂ emissions* cuts

to recognize eco-friendly real estate* for large buildings, including*1 Excluding some buildings, such as those developed jointly with othercompanies*2 Condominium with 20% or more reduced overall primary energy
consumption (energy consumed for heating, cooling, ventilation, lighting
and hot water heating) from current energy-eﬃciency standards,
including for common areas*3 By improving surface vegetation, rainwater is collected on the leaves ofsuch vegetation, and their roots make the terrain spongier, so rainwater
does not combine into a single, powerful ﬂow. Retaining water in forest
terrain in this way enhances water resource environments.
*4 Forest thinning opens up the space between trees, allowing theremaining trees to grow bigger and stronger, and thereby capture agreater amount of CO₂.
*5 ZEH: Condominiums with 100% or more reduced overall primary energy
consumption (energy consumed for heating, cooling, ventilation, lighting
and hot water heating) from current energy-eﬃciency standards; Nearly
ZEH: 75% or more reduction; ZEH Oriented: 20% or more reduction.

conservation activities that contribute to the development of acircular economy. We are endeavoring to understand and reduce
the environmental impact we have through the pollution andTarget value

Scope

FY2023 result

FY2031: 46% reduction compared to FY2014
FY2051: Net zero CO₂ emissions

Hankyu Hanshin Holdings and its subsidiaries
Japanese worksites

41.3% reduction
compared to FY2014

waste our business activities produce*, and to make effective useof resources, such as by promoting recycling.
*Data on waste, chemicals, and water resources can be found in the
Sustainability Data Book.

*Scope 1 and 2 equivalent

For more details on our approach to ESG issues, targets, initiatives, and other data, see our Sustainability Data Book.

Recycling Hanshin
and Bottles

https://www.hankyu-hanshin.co.jp/en/sustainability/● Environmental themes: Environmental management, climate change, pollution and resources, biodiversity,

Osaka Umeda Twin Towers
South (5 stars)

water resourcesoshien Stadium s Plastic Cups

At Hanshin Koshien Stadium, we are promoting recycling incollaboration with other companies and the local authorities, withthe goal of reducing resource use and improving recycling rates.
Through collaboration with two companies, Teijin Frontier andCut greenhouse gas (CO ) emissions

Shimojima, and the assistance of our customers, we are using■ CO emissions by scope (FY2022)
Ratio by scope

recycled plastic cups in which draft beer and other drinks are soldScope 2
7.6%

Scope 1
2.8%

Environmentally Friendly Homes
For some time, all of Hankyu Hanshinʼs Geo condominiums*¹ for

Changes in CO Emissions (See Page 14)

sale have featured laminated low-emissivity glass, LED lights

In the Long-Term Vision announced in May 2022, we set out a(common and exclusively owned areas), EV charging facilities,

target of achieving net zero CO₂ emissions* by fiscal 2051 as we

etc. In this way, we have proactively striven to create home thatwork to become carbon neutral by that point. We promote

consumption include the systematic introduction of an increased

Category 4
10.1%

facilities, hotels, etc., and our CO₂ emissions* in fiscal 2023 weresuch as common-area washrooms, is expected to help with
replenishing water sources*³ and improve carbon capture*⁴, as
well as being effective in preserving biodiversity. It will also
Scope 3 emissions

contribute to conserving local forest environments.

3,404*Scope 1 and 2 equivalentCategory 2
20.2%

Emissions from the Supply Chain

Hankyu Hanshin Holdings Integrated Report 2023

principle for local consumption of local production), in places

Other 12.4%

41.3% (362,000 t-CO₂) less than in fiscal 2014.

91

Moreover, utilizing wooden materials produced in Japan (inScope 3 breakdown

as the introduction of LED lighting in railway stations, commercial*Scope 1: Direct emissions of greenhouse gases, such as through the
combustion of fuelScope 2: Indirect emissions from our use of electricity, heat, or steam
supplied by other companies
Scope 3: Indirect emissions related to our activities but produced bycompanies other than us

the same materials to be reused at the stadium.

for sale or lease will be ZEH-M Oriented*² or better.

number of new rolling stock with better energy efficiency, as wellSince fiscal 2022, we added Scope 3 calculations to those for
Scope 1 and Scope 2.*

rubber fencing. This cyclical initiative allows for

performance, from fiscal 2025 all of our condominiums*¹ offered

to reduce CO₂ emissions.
In our railway operation business, our efforts to reduce energy

garbage bags, and cushioning for stadium

consider the environment. In order to raise environmental

Scope 389.6%

energy-efficiency initiatives throughout the Group and endeavor

at the stadium toward the materials needed to make novelty
merchandise (such as beer cup holders),

thousand t-CO₂

For our Geo Garden detached home developments too, ourtarget is to make 50% or more of our detached homes for sale inCategory 1
57.3%

fiscal 2026 either ZEH or Nearly ZEH standard, and, in principle,
all of them ZEH (ZEH, Nearly ZEH, or ZEH Oriented)*⁵ by fiscal
2031.

Major Scope 3 emissions categories
Categoryanshin oshien
Stadium Recycling

A beer cup
recycle bin

Relevant activities(thousand t-CO₂)

Recover plastic
cups at thestadium

Use at thestadium

Emissions1

Emissions from the all products and services
purchased or acquired

1,950

2

Emissions from the production of capital goods
purchased or acquired

689

4

Emissions from third-party transportation anddistribution of products, etc. (excluding thosereported under Category 1)

344

Pulverize and melt collectedcups to process them into
recycled materials

Manufacture garbage bags,
partly from the recycledmaterials

Hankyu Hanshin Holdings Integrated Report 2023

92

Profile

Creating Real Value: The Foundations

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Participation in Initiatives and External Evaluation
In fiscal 2023, we were recognized for reusing materials forConserve biodiversity

government-specified garbage, which has expanded their use
other than within the stadium, and we are promoting cooperation
with local authorities to reduce the amount of resources that areused.
In addition, in collaboration with Asahi Soft Drinks, we have
implemented abottle to bottle

initiative that uses the plastic

from plastic bottles recycled with the help of our customers at
Hanshin Koshien Stadium to produce recycled plastic bottles
used at the summer 2023 National High School BaseballChampionship of Japan.

Recycling Food Waste in the Hotel Business
Hankyu Hanshin Hotels has set food waste as a non-financial KPI(see page 63) and by putting in place systems related to making
effective use of, and measuring, waste materials produced during
food processing, is working to control how much food waste is
generated. Also, some hotels strive to use resources more
effectively by properly separating scraps and repurposing someas compost or feed on a pig farm.

The Group has joined the following international initiatives, is accelerating ESG-related initiatives, and has undergone
evaluations and certiﬁcation procedures for ESG indices (Socially Responsible Investment Indices; as of July 2023).

We have set thriving communities as one of our priority themes

In June 2023, we were selected for inclusion in the FTSE 4Good Index Series and FTSE Blossom Japan Index, indicesand so as an initiative to put in place quality living environments,that comprise companies with excellent ESG ratings, for the ﬁrst time. The FTSE Blossom Japan Index is actually used

we are promoting activities connected to the natural environment

as an ESG index for the Government Pension Investment Fund (GPIF), one of the world s largest pension funds.

and biodiversity throughout the Group.

Supporting Citizen Groups with the Hankyu Hanshin
Community Future Fund

In our Hankyu Hanshin Dreams and Communities of the Future
Project, a priority area is Sustainable Community Development

Our selection for the FTSE Blossom Japan Index means that we have also been selected for all six Japanese ESG
indices*¹ that the GPIF uses. This actually means that we are̶as of July 2023̶the only railway company or company
in a railway group, to be selected for all these indices.

Initiatives
Task Force on Climate-related Financial Disclosures (TCFD)

and so we are working to conserve biodiversity. Part of that has

In May 2021, we signed a petition expressing our support for the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD). Since then, we have been actively disclosing
information in line with the disclosure framework recommended by the TCFD as we worked totackle climate change of other societal issues.

involved collecting donations from employees, to which we havethen added an identical amount, and using that to support citizen
groups in areas along our railway lines as the Hankyu Hanshin

United Nations Global Compact

Community Future Fund. This fund has helped to support civic

We signed a petition to express our support for the United Nations Global Compact (UNGC)
advocated by the United Nations, and in May 2021 we registered as a participating company.
Complying with the ten principles advocated by the UNGC will help to bring about a more sustainable
society.

groups who survey and conserve biodiversity in the local mountains andrivers.

Inclusion in the ESG Indices

Save and e ectively use water resources

FTSE 4Good Index*²

This index is compiled by FTSE Russell from a selection of major global companies that excel in termsof ESG perspectives. The Company was originally added to this index in 2023.

We are committed to reducing water use as much as possible bysaving water and reusing wastewater, in collaboration with

FTSE Blossom apan Index*²

customers, real estate business tenants, and other stakeholders.

E ective Use of Water at Group Facilities
Some commercial facilities have wastewater reuse equipmentthat purifies rainwater and kitchen wastewater from restaurants
and uses it for watering plants and flushing toilets. At stations
and other facilities, we have also installed water-saving toilets.
Meanwhile, Hankyu Settsu-shi Station and Hankyu Nishiyama-This index is compiled by FTSE Russell from a selection of Japanese companies with particularly high
ESG ratings. The Company was originally added to this index in 2023.
Mushugawa River Area Nature Protection Association

Protecting Biodiversity at the Rokko Alpine
Botanical GardenThis ESG index is compiled by FTSE Russell from a selection of Japanese companies with high ESG
ratings in their respective industries. The Company was originally added to this index in 2022.

Rokko Alpine Botanical Garden, a member of the Japan
Association of Botanical Gardens since its inception in 1947

tennozan Station use rainwater for jobs like flushing toilets, whileserving as a local outpost, is devoted to preserving biodiversity;

Hanshin Koshien Stadium uses it for flushing toilets and watering

around 1,500 varieties of alpine and cold-region plants fromthe grass.

FTSE Blossom apan Sector Relative Index*²

MSCI apan ESG Select Leaders Index*³

This index is compiled by MSCI based on MSCI s ESG ratings (which sort companies into sevencategories, from the highest AAA rating to the lowest CCC). It brings together a selection of Japanesecompanies with excellent ESG ratings from various industrial sectors. The Company was included inthis index when it was ﬁrst formed in 2017.

around the world, as well as plants native to Rokko, andendangered species are all cultivated in near-natural conditions.
Since 2021, we have also provided Hemerocallis esculenta (aMSCI apan Empowering Women Index (WIN)*³

type of daylily) to Itami City Museum of Insects, a facility that isThis is an index that selects Japanese companies that lead the industry in terms of gender diversity
according to MSCI s data on the employment and promotion of women as well as information
disclosure on diversity initiatives. The Company was originally added to this index in 2020.

trying to protect the agapanthia beetle (Agapanthia japonica)̶
which is listed in the endangered section of the Ministry of theEnvironmentʼs Red List. In 2022, the museum was the first facility

S P

Water Saving in the Hotel Business

P

Carbon Efficiency Index

This index is compiled from a selection of companies from among the constituents of the TOPIX
index, which comprises companies in the S&P Dow Jones Index and the Tokyo Stock Exchange,
excluding those with extremely low carbon eﬃciency and risk indicators above a certain level.
The Company was included in this index when it was ﬁrst formed in 2018.

in Japan to successfully breed the beetles in captivity.

ESG Evaluation and Certi cation

Hankyu Hanshin Hotels encourages guests staying multiple nights
to use the same sheets and towels as the first night instead of

MSCI s ESG RATINGS*³: Achieved the Highest Ranking of AAA

having them replaced every day, saving water on laundry. Also,

Since September 2021, we have maintained the highest ranking of AAA in MSCI s ESG rating. This
serves as the criterion for selecting stocks for the MSCI Japan ESG Select Leaders Index..

some of the money saved on this laundry is donated toenvironmental action groups and similar in each region.

Hemerocallis esculenta*1 The six ESG indices of Japanese shares that the GPIF uses are: the FTSE Blossom Japan Index, MSCI Japan ESG Select Leaders Index, MSCI Japan Empowering Women Index(WIN), FTSE Blossom Japan Sector Relative Index, S&P/JPX Carbon Eﬃciency Index, and Morningstar Japan ex-REIT Gender Diversity Tilt Index*2 FTSE Russell (a registered trademark of FTSE International Limited and the Frank Russell Company) has veriﬁed through a third-party survey that the Company fulﬁlls all thenecessary criteria for inclusion in these indices. FTSE Russell, the compiler of these indices, is a global index provider and was set up to measure the performance of companies
with excellent responses to ESG (environment, social, and governance) topics. As such, it is widely used in developing and evaluating various ﬁnancial products, such assustainable investment funds.
*3 MSCI https://www.msci.com/our-solutions/esg-investing

For other environmental and social evaluations, please refer to our website (Japanese only).
https: www.hankyu-hanshin.co.jp sustainability evaluation

93

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

94

Financial Section and Corporate Data

04

Financial Section andCorporate Data

ProfileCreating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

CONTENTS
97 Consolidated Eleven-Year Summary
99 Business Risks
101 Consolidated Balance Sheets
103 Consolidated Statements of Income/Consolidated Statements ofComprehensive Income

107 Notes to the Consolidated Financial
Statements
138 Others
139 Major Group Companies
140 Company Overview andInvestor Information

104 Consolidated Statements of
Changes in Net Assets
106 Consolidated Statements of Cash Flows95

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

96

Creating Real Value:
Our Story

ProfileFinancial Section and Corporate Data

Creating Real Value:
The Processes

Financial Section andCorporate Data

Creating Real Value:
The Foundations

Consolidated Eleven-Year Summary
Fiscal Year

2013

2014

2015

20167

2017

20188

2019

2020

2021

20229

2023

Result of Operations (Millions of yen):
Revenues from operations¥ 682,439¥ 679,157¥ 685,906¥ 746,792¥ 736,763¥ 760,252¥ 791,427¥ 762,650¥ 568,900¥ 746,217

Operating income

87,921

91,82894,026110,293

104,058

105,211

114,937

95,1702,066

39,212¥

968,300
89,350EBITDA1

145,100

149,200

150,100

166,500

159,300

160,800

171,400

154,100

60,300100,700

153,700

Ordinary income (loss)

74,914

81,191

85,590104,479

100,607

103,774

110,543

88,795(7,623)38,45088,432

Income (loss) before income taxes

62,192

83,542

77,62096,087

100,805

101,41088,56286,746(41,013)

38,59275,012

Net income (loss) attributable to owners of the parent

39,702

46,352

54,201

69,971

71,302

66,36165,47654,859(36,702)21,41846,952Comprehensive income

54,081

55,941

71,034

63,842

79,28873,991

66,56544,292(22,803)

17,251

51,991

Capital expenditure

59,51280,722

68,11566,63986,21286,404

114,368

81,090108,472

120,302

63,039Depreciation and amortization

54,54054,474

53,14353,70152,80053,27654,17256,542

55,733

59,10762,037

Cash ﬂows from operating activities¥ 127,655¥ 146,991¥ 131,881¥ 124,838¥ 115,633¥ 135,821¥ 126,035¥ 123,086

Cash ﬂows from investing activities(58,923)(45,517)(52,529)(78,843)(84,845)(88,351)(116,160)

Cash ﬂows from ﬁnancing activities(69,195)(105,079)(81,746)(47,278)(30,595)(43,242)(11,171)964

817(1,840)(1,125)(1,978)

(480)

4,588

(1,848)（4,454）25,581

24,49723,49722,363

22,53027,501

27,589¥2,281,007¥2,286,928¥2,279,638¥2,282,180¥2,349,831¥2,404,926

573,154

617,598

679,482

724,237

804,659

866,512

1,126,633

1,032,307

955,828

916,570

899,523

866,758

Cash Flows (Millions of yen):

Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of year¥

（128,498）(32,501)¥

81,844¥132,091(102,151)(96,442)(113,216)

134,631

15,141(8,981)

(375)

1,983

11,797

23,52625,222

29,422

41,375¥2,466,223¥2,489,081¥2,621,028¥2,722,841¥ 2,865,410

915,381

937,672

909,985

915,363

980,940

877,055

903,480

1,063,048

1,095,965

1,106,351

Financial Position (Millions of yen):
Total assets
Total net assets
Interest-bearing debt
Per Share Data (Yen)2:
Net income attributable toowners of the parent

Basic

¥

Diluted3

31.48

¥

36.76

¥

42.98

¥

277.88¥285.11¥

267.91¥266.86¥225.69¥(151.72)

¥

88.89

¥

194.88

31.47

36.75

42.95

277.67284.86267.81266.86

̶

̶

88.83

194.78

Net assets

443.63477.69525.562,815.96

3,150.67

3,391.35

3,615.52

3,738.56

3,598.83

3,612.17

3,764.17

Dividend

5.00

6.00

6.00

35.00

35.00

40.00

40.00

50.00

50.00

50.00

50.00

Operating income margin (%)

12.9

13.5

13.7

14.8

14.1

13.8

14.5

12.5

0.4

5.3

9.2

ROA (%)4

3.3

3.6

3.7

4.6

4.3

4.4

4.5

3.6

(0.3)

1.4

3.2

ROE (%)5

7.4

8.0

8.6

10.3

9.4

8.2

7.6

6.1

(4.1)

2.5

5.3

Interest-bearing debt/EBITDA (Times)

7.8

6.9

6.4

5.5

5.6

5.4

5.1

5.9

17.6

10.9

7.2

Equity ratio (%)

24.5

26.3

29.1

31.0

33.5

34.8

35.9

36.4

33.1

32.0

31.6

Debt/equity (D/E) ratio (Times)6

2.0

1.7

1.4

1.3

1.1

1.0

1.0

1.0

1.2

1.3

1.2

1,271,406

1,271,406

1,271,406

254,281254,281254,281254,281254,281254,281254,281254,281

20,751

20,913

21,037

21,607

21,86022,152

22,65422,80023,192

22,86922,527

Ratios:Others:Number of outstanding shares (Thousands)
Number of employees

1. EBITDA = operating income + depreciation expenses + amortization of goodwill
EBITDA ﬁgures are rounded to the nearest ¥100 million.

2. The Company (since ﬁscal 2020) and our subsidiary Hankyu Hanshin Properties Corp. (since ﬁscal 2019), as well as Hankyu Corporation and Hanshin Electric Railway

Co., Ltd. (both since ﬁscal 2018), have operated the Board Incentive Plan Trust, and the shares of the Company held by such trust are recorded as treasury shares in the
consolidated ﬁnancial statements.

7. Regarding transactions related to such items as the export of mixed cargo of the International Transportation Business, the Company has changed the recognition ofrevenues from operations from net presentation to gross presentation as of ﬁscal 2017. As a result of this change, the amount of revenues from operations for ﬁscal 2016is the amount after retrospective application (gross presentation).

Furthermore, the Company consolidated shares at the ratio of 5 shares to 1 share with an eﬀective date of August 1, 2016. Net income per share, diluted net income per

Therefore, when net assets per share, and net income per share and diluted net income per share attributable to owners of the parent are calculated, the number of suchshare attributable to owners of the parent, net assets per share, dividend per share, and number of outstanding shares have been calculated based on the assumption

3. As there are no residual shares with a dilutive eﬀect, diluted net income per share attributable to owners of the parent for ﬁscal 2020 has been omitted. For ﬁscal 2021,

that the said reverse stock split was executed on April 1, 2015.
8. The partially amended “Tax Effect Accounting” standards (ASBJ Guidance No. 28, February 16, 2018) have been applied since the start of fiscal 2019, and the

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

9. The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and other standards have been applied from the beginning of ﬁscal 2022,

shares is included in the treasury shares to be deducted.

diluted net income per share attributable to owners of the parent is omitted because a net loss per share was recorded despite the existence of dilutive shares.

5. ROE = net income attributable to owners of the parent / equity (average of period-start and period-end totals)

97

6. D/E ratio = interest-bearing debt / equity

Hankyu Hanshin Holdings Integrated Report 2023

consolidated ﬁnancial indicators and similar of ﬁscal 2018 are those after retrospective application of the relevant accounting standards.

and the key management indicators, etc., for ﬁscal 2022 onward indicate values after applying the above-mentioned accounting standard, etc.

Hankyu Hanshin Holdings Integrated Report 2023

98

Profile

Financial Section and Corporate Data

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Business Risks
The various categories of risk to which business performance, stock price, ﬁnancial position and other aspects of the operations of
the Hankyu Hanshin Holdings Group are subject are detailed below. Information about future events that appears in this integrated
report was determined by the Group and was current as of March 31, 2023. These risks do not include all of the risks that theGroup could face.

1

Natural Disasters and Accidents

1.1 Risk from Epidemics

due to an unexpected incident, claims for damages and loss of publiccredibility may substantially aﬀect the Group s performance.
In accordance with internal regulations such as the Fundamental

imposed on the movement and lives of people in various ways, it may

Polices on Electronic Information Security, the Group takes measuresmaterially aﬀect the Company s businesses. Speciﬁcally, impacts may

required to prevent leaks, falsification, or unauthorized use of

be seen in the Urban Transportation Business through effects suchinformation and to operate its information systems securely. In light ofas a declining number of passengers on railways and other means ofbeing a railway operator, an important role, and with ensuring cybertransportation; in the Real Estate Business through temporary closingssecurity positioned as an important element in risk management,

and a decreasing number of visitors to leased facilities with fewer

the Group makes continuous efforts such as proactive information

hotel guests from overseas and weaker domestic demand; in thegathering in cooperation with administrative agencies and other

Entertainment Business through the cancellation of and attendance

related organizations. Additionally, the Group CSIRT has been

restrictions on professional baseball games and performances of theestablished for damage localization by promptly communicating and

Takarazuka Revue; and in the Travel Business through the cancellation

dealing with a problem when it occurs. A system to take appropriateof overseas and domestic tours.

recurrence prevention measures is also in place. Regarding personal

Since the spread of COVID-19, the Group has been impacted as

information, in addition to the above, the Group has establisheddescribed above. Although impacts remain in ﬁscal 2022, a degree of

regulations, such as fundamental policies on the management ofrecovery is seen in many business segments.

personal information, to ensure compliance with laws and regulations
related to the protection of personal information at home and abroad,activity to a significant degree expected as the influence of theand developed a system to help ensure the appropriate use andpandemic subsides, the Group will get back onto a pre-Covid growth

protection of personal information. Relevant training programs for

track through the implementation of the medium-term managementoﬃcers and employees are also provided.

plan, and will push forward with the implementation of strategies torealize its Long-Term Vision: Toward 2040 .
1.2 Natural Disasters
Operating across an extremely wide range of businesses in its

3

Compliance

The Group aims to meet the expectations of all its stakeholders andoperate as a corporate group that is trusted and applauded by them.
One of the preconditions for achieving this goal is a compliance-

Urban Transportation, Real Estate, Entertainment, Information andfocused business attitude. In the event of noncompliance, claims forCommunication Technology, Travel, and International Transportation,

damages and loss of public credibility may aﬀect the Group s businessthe Group maintains a correspondingly large assortment of facilities

performance and ﬁnancial position.

necessary for conducting business. In the event of earthquakes,

The Group promotes compliance management in each of its

typhoons or other natural disasters, large-scale accidents or actsbusiness segments not only by strictly observing the Companiesof terrorism, the business performance and financial position of theAct, Financial Instruments and Exchange Act, labor laws, tax laws,

Group could be adversely affected by damage to these facilities,

economic laws, various industrial laws, and other relevant laws, but

its customers and/or limitations placed on its business operations.

also by developing various basic policies on respect for human rights,

Especially in recent years, it has been pointed out that climate

prevention of corruption (bribery, etc.), tax aﬀairs, and so on, as wellchange in the form of rising air and sea temperatures may increase

as internal regulations, such as a code of corporate ethics, thoroughly

the frequency of torrential rains and strong typhoons, and there is an

implementing business operations in line with these.
In particular, the Group believes that respect for human rights

increasing risk of the above-mentioned adverse eﬀects being brought
about by these natural disasters.

is the foundation for continuing to fulfill its mission. Based primarily

The Group is striving to minimize both the tangible and intangibleon the United Nations Guiding Principles on Business and Human

impacts of natural disasters and accidents. Eﬀorts include investing in

Rights, the Group has developed (and revised in April 2023) a basic

maintenance and renovation of existing facilities, conducting seismic

philosophy on respect for human rights and a basic policy on respect

reinforcement work, analyzing and responding to the impact offor human rights, and is undertaking due diligence to avoid or reduce

intensifying natural disasters, and developing systems with a priority on

any negative occurrences. To further enhance the effectiveness ofsafety, especially at group companies engaged in the railway businessthese efforts, a variety of education and training programs are also

and other forms of public transportation.

implemented for officers and employees to raise their awareness2

noncompliance. The Group has also established a whistleblowerof compliance and improve their knowledge, thereby preventing
Information Management

The Group uses information systems in each of its business segments.

system that allows prompt detection of and dealing with events that

If the functions of these systems are materially impacted bythreaten our compliance stance and record.

accidents, disasters, human errors or cyber-attacks, system failures
or malfunctions, information leaks or other events may occur and99

4

Finance (Interest-Bearing Debt)

disrupt the Group s business operations, thereby aﬀecting its business

The Group makes continuous capital investments in each of its

performance and financial position. Regarding personal information,business segments. Most of the necessary funds are procured by

the Group manages databases containing customer data and otherborrowing from financial institutions and issuing corporate bonds,

personal information in each of its businesses. If information is leaked

among other means. For this reason, in the case of future increases

Hankyu Hanshin Holdings Integrated Report 2023

5.4 Social Changes (in Lifestyle and Workstyle)Group s credit rating due to changes in its financial position, theTriggered by the COVID-19 pandemic, social changes, such as changes

Group s interest expenses may increase, and raising additional funds

in people s behaviors and locations they are based in, and expansion

on desirable terms, including funds needed to refinance interest-of awareness of QOL (Quality of life) are seen. Socioeconomic

bearing debt that reaches maturity, may become diﬃcult.

If an infectious disease becomes widespread and restrictions areWith the recovery of domestic and international economic

in interest rates, changes in ﬁnancial markets, or downgrades in theand business environments are changing rapidly, as illustrated by

The balance of interest-bearing debt held by the Group as of theincreasing awareness of SDGs and carbon neutrality 2050 (achieving

end of March 2023 on a consolidated basis was ¥1,106,351 million.

a decarbonized society by 2050). Going forward, if these changes

Going forward, the Group plans to make capital investments required

transform people s lives, it may affect the existing business models

for maintaining and improving facilities, etc., as well as growth investingof the Group, since it operates businesses closely related to the way

toward the future, including investment in large-scale projects. Withpeople live.

these investments, consolidated interest-bearing debt is expected toincrease to a certain degree.
The Group will continue to diversify its funding and secure its
liquidity, take steps to avoid interest rate risks through fixed rate
ﬁnancing, and strive to maintain the soundness of its ﬁnancial position
by controlling interest-bearing debt through cost reduction andreductions in investment in maintenance and replacement.
5

Changes in Political, Economic and Social Environment

5.1 Legal Risk
In accordance with the stipulations of Article 3 of the Railway Business
Law, the Group must obtain separate permissions from the Ministry ofLand, Infrastructure, Transport and Tourism (MLIT) for each categoryof railway operations on each route that it intends to operate. Under
Article 16 of the Law, a railway operator must obtain MLIT s approval
for the passenger fares it intends to set and on each occasion when it
wishes to change the fares. Therefore, these regulations may limit theactivities of the Group s railway business. Notably, no ﬁxed periods areprescribed for the permissions or approvals of MLIT.
In addition to the railway business, other businesses in which
the Group engages are also subject to various laws and regulations. If
these are tightened, the cost of regulatory compliance may increase,
while failure to comply with regulations may limit the Group s activities
and aﬀect the Group s business performance, ﬁnancial status, etc.
The Group is working to minimize any such effects byinvestigating and ascertaining in advance information regarding
changes in existing regulations and the establishment of new

In light of this situation, the Group will progress with measuresin line with the strategies outlined in its Long-Term Vision: Toward2040 formulated in May 2022, respond to changes in socioeconomic
and business environments, and take into account people s needs
and preferences to offer a range of products and services, thereby
continuously improving the corporate value of the Group.
5.5 Addressing Climate Change
To cope with climate change, eﬀorts are being mounted extensively
on a global basis to reduce greenhouse gas emissions. Although
the Group s railway, its core business, has less of an environmental
impact than other means of transportation, the business is expected
to require future investment or incur additional expense to respondto a more decarbonized and recycling-based society. Moreover,introduction of a carbon tax system for greenhouse gas emissions anda rise in retail electricity prices (to promote renewable energy, etc.)
may be accompanied by further increases in cost. If the Group fails toadjust to these social demands, it may face a decrease in revenue dueto the loss of public credibility and/or ﬁnancing diﬃculties.
The Group recognizes that greenhouse gas reduction is necessary
for realizing a sustainable society. With environmental protection
set as one of the priority issues in its Sustainability Declaration, theGroup is moving forward with environmental protection activities that
contribute to achieving a more decarbonized and recycling-basedsociety.
As part of these activities, the Group has agreed to and istaking steps in accordance with the recommendations from the Task

regulations and their respective impacts.

Force on Climate-related Financial Disclosure (TCFD). In line with its

5.2 Decline in the Market Value of Assets Held by Members of the

management, and indicators and goals. As for strategies,

Hankyu Hanshin Holdings GroupIn the case of a substantial decline in the market value of inventory
assets, property and equipment and intangible assets, investment
securities or other assets, the recording of impairment loss or valuation
loss would likely have a negative impact on the business performanceand ﬁnancial position of the Hankyu Hanshin Holdings Group.
5.3 Declining Birth Rate
In the Group s mainstay Kyoto-Osaka-Kobe area, demographic
changes accompanying the declining birth rate and other factors are
expected to decrease demand for railway, bus, taxi and other typesof passenger transportation services, as well as decrease demandin other business areas. In addition, securing personnel is likely to
become difficult as an imbalance between supply and demand
develops in the labor market. Such situations could aﬀect the businessperformance and ﬁnancial position of the Group.
In addition to eﬀorts to increase the resident population in areas
along railway lines operated by the Group and to increase the inﬂux ofvisitors to these areas by capturing the demand generated by foreign
tourists, etc., the Group will broadly promote efforts to improve
productivity by leveraging DX (Digital Transformation) and by othermeans.

disclosure framework, the Group has speciﬁed its governance,risk

risks andopportunities in the railway business and real estate business that arelikely to be signiﬁcantly aﬀected by climate change in its businesses
have been identiﬁed by the Group for analysis, including estimationand disclosure of ﬁnancial impacts. For the purpose of evaluating andmanaging these risks and opportunities related to climate change, CO2
emission reduction target values (ﬁscal 2031: 46% reduction comparedto fiscal 2014; fiscal 2051: net zero) have been set as group-wide
Key Performance Indicators (KPI). Having set individual KPIs for eachbusiness as well, the Group is working to improve the resilience of its
business to climate change.
5.6 International Operations
The Group s Real Estate, Travel, International Transportation andother businesses are also active overseas and are, therefore, subject
to various risk factors in each country, ranging from drastic changes
in political and economic conditions to incidents of conﬂict, disputeor terrorism and the outbreak of infectious diseases. The Group is
working to address these risks based on risk analyses supported by
the advice of lawyers, consultants and other experts. However, in thecase of an unexpected development, the business performance andﬁnancial condition of the Group may be aﬀected.

Hankyu Hanshin Holdings Integrated Report 2023

100

Profile

Financial Section and Corporate Data

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Financial Section andCorporate Data

Creating Real Value:
The Foundations

Consolidated Balance Sheets
As of March 31, 2022 and 2023

Millions of yen

2022

Millions of yen

2023

2022

Assets:Liabilities:

Current assets:
Cash and deposits

2023

Current liabilities:
42,876

Trade payables

Trade receivables (Note 8.1)¥

112,568

31,331¥

120,067

Accrued expenses¥

40,69916,853¥42,02423,182Land and buildings for sale

166,331

193,607

Short-term borrowings (Note 8.4)

145,737

187,982

Finished products and merchandise

2,372

2,897

Commercial paper

50,00010,000Work in progress

2,131

2,461

Current portion of bonds

7,000

30,000Materials and supplies

5,464

5,790

Lease obligations

3,834

4,251

Other

46,01861,237

Income taxes payable

6,380

10,029

(408)

(856)

Provision for bonuses

365,811

428,082

Allowance for doubtful receivables
Total current assets
Noncurrent assets:
Property and equipment:

3,682

4,337

Other (Notes 8.1 and 8.4)

152,471

187,877

Total current liabilities

426,659

499,684

Non-current liabilities:

Buildings and structures‒net (Note 8.4)

646,407633,990

Long-term debt (Note 8.4)

649,476

634,613

Machinery, equipment and vehicles‒net (Note 8.4)

60,31457,804

Bonds

230,000

230,000

Land (Notes 8.4 and 8.6)

973,0121,010,609

9,916

9,503

Construction in progress

218,215

252,908

Deferred tax liabilities

176,516

181,831

Other‒net (Note 8.4)

25,02325,678Deferred tax liabilities related to land revaluation (Note 8.6)

5,182

5,182

1,922,974

1,980,991

Total property and equipment (Notes 8.2 and 8.3)
Intangible assets:

Lease obligations

Net deﬁned beneﬁt liability

62,79561,916Long-term deferred contribution for construction

117,561

132,580

Goodwill

9,655

7,334

Other

Other (Notes 8.3 and 8.4)

27,85628,155

Total non-current liabilities

Total intangible assets

37,51235,489Total liabilities

129,369

129,156

1,380,818

1,384,785

1,807,477

1,884,470

Investments and other assets:
Investment securities (Notes 8.4 and 8.5)

316,231342,659

Deferred tax assets

7,218

7,272

Shareholders equity:

Net deﬁned beneﬁt asset

18,505

18,590Common stock

99,474

99,474

Other (Note 8.4)

54,91752,583

Capital surplus

147,358

147,343

(329)

(258)

Retained earnings

645,212680,040

Allowance for doubtful receivables
Total investments and other assets
Total noncurrent assets
Total assets

Net assets:

396,544420,846

Less treasury stock, at cost

(48,713)(48,748)

2,357,030

2,437,328

Total shareholders equity

843,332

878,1102,722,841

2,865,410

18,756

20,930

Accumulated other comprehensive income:
Valuation diﬀerence on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land (Note 8.6)
Foreign currency translation adjustments

Hankyu Hanshin Holdings Integrated Report 2023

(78)
5,499

435

908

Cumulative adjustments related to retirement beneﬁt plans

2,317

1,433

Total accumulated other comprehensive income

27,016

28,692

Non-controlling interests (Note 8.6)

45,014

74,137

Total net assets

915,363

980,940

2,722,841

2,865,410

Total liabilities and net assets

101

7
5,499

Hankyu Hanshin Holdings Integrated Report 2023

102

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Financial Section and Corporate Data

Consolidated Statements of Income

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Years ended March 31, 2022 and 2023

Millions of yen

2022

¥

Millions of yen
Shareholders equity

2023

746,217¥968,300

Costs of revenues from operations:Operating expenses and cost of sales of transportation

679,865

849,136

707,005

878,949

27,139Selling, general and administrative expenses (Note 9.2)
Total costs of revenues from operations (Note 9.3)

29,81339,212

Operating income

89,350Non-operating income:

179

314

7,167

8,325

10,885

12,145Interest income

928

Dividend income
Equity in income of aﬃliates

957

2,609

Miscellaneous income
Total non-operating income

2,547

Non-operating expenses:

Balance as of March 31, 2021

Commonstock

CapitalsurplusRetainedearnings

Less treasury
stock, at cost

Total
shareholders
equity¥99,474¥146,772¥636,095¥(48,701)¥833,640

99,474

146,772

635,818(48,701)

833,363

Cumulative eﬀects of changes in accounting policies
Restated balance

(277)

8,516

Loss on retirement of noncurrent assets

8,768

1,034

1,784

11,64813,063

2,097

Miscellaneous expenses
Total non-operating expenses

2,510

38,450Ordinary income

88,432Extraordinary income:

28,239Gain on contributions for construction

Dividends from surplus(12,126)(12,126)

Net income attributable to owners of the parent

21,41821,418

Reversal of revaluation reserve for land

8

Other

42,969Total extraordinary income

7,927

Extraordinary loss:

28,302

Loss on reduction of noncurrent assets

4,986

631

12,672

42,827

21,348

Impairment losses (Note 9.5)

13,892

Other
Total extraordinary loss

3,689

38,592

Income before income taxes
Income taxes ‒ current

75,012

9,963

18,24913,25623,422

3,292

Income taxes ‒ deferred
Total income taxes

5,173

25,335

Net income

51,5893,916

Net income attributable to non-controlling interests

4,636

21,418Net income attributable to owners of the parent

46,95236

̶

consolidated subsidiaries
122

consolidated subsidiaries

(0)

122
93

Changes in equity in aﬃliates accounted
for by equity-method treasury stock

92
(0)

(0)

Net changes in items other than shareholders equity
Total changes in items during the period
Balance as of March 31, 2022

̶

586

9,394

(12)

9,969

¥99,474¥147,358¥645,212¥(48,713)¥843,332

99,474

147,358

645,212(48,713)843,332

Cumulative eﬀects of changes in accounting policies
Restated balance̶

Changes in items during the period:
Dividends from surplus(12,125)(12,125)

Net income attributable to owners of the parent

46,952

46,952

Reversal of revaluation reserve for land0

Disposal of treasury stock0

Change in equity of parent arising from transactions
with non-controlling interest shareholders
Changes in equity due to purchase of treasury stock ofconsolidated subsidiaries

Years ended March 31, 2022 and 2023

36

465

Purchase of treasury stock

Consolidated Statements of Comprehensive Income(47)

Changes in equity due to purchase of treasury stock of

Change in scope of consolidation

2,060

8
(47)

465

with non-controlling interest shareholders

1,942

10,661(0)Change in equity of parent arising from transactions

Changes in equity due to capital increase of

1,394

3,702

Gain on sales of investment securities

Disposal of treasury stock

2,530

366

Gain on sales of noncurrent assets (Note 9.4)

(277)

Changes in items during the period:

Purchase of treasury stock

Interest expenses

0
(53)

(53)

101

101

11

11

(26)

(26)

Changes in equity due to capital increase of̶

consolidated subsidiaries
Millions of yen

2022

Net income¥

Change in scope of consolidation

2023

25,335¥51,589Other comprehensive income:
Valuation diﬀerence on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of deﬁned beneﬁt plans

Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income (Note 10)
Comprehensive income

Financial Section andCorporate Data

Consolidated Statements of Changes in Net Assets

Years ended March 31, 2022 and 2023

Revenues from operations (Note 9.1)

Creating Real Value:
The Foundations(8,633)
4

1,860

(86)

2,191

(1,340)108

727(1,754)(8,084)(759)

̶Changes in equity in aﬃliates accounted
for by equity-method treasury stock

(82)

(82)

Net changes in items other than shareholders equity
Total changes in items during the period
Balance as of March 31, 2023

̶

(15)

34,827(34)

34,777

99,474

147,343

680,040(48,748)

878,110402

17,251

51,991

15,837

48,955Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

103

Hankyu Hanshin Holdings Integrated Report 2023

1,413

3,036

Hankyu Hanshin Holdings Integrated Report 2023

104

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Financial Section and Corporate Data

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Creating Real Value:
The Processes

Financial Section andCorporate Data

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The Foundations

Consolidated Statements of Cash Flows
Years ended March 31, 2022 and 2023

Millions of yen

2022

Millions of yen
Accumulated other comprehensive income
Valuation
diﬀerence on
available-forsale securities

Balance as of March 31, 2021

¥24,600

Deferred gains
Revaluation
or losses onreserve for land
hedges¥3¥5,483Foreigncurrencytranslation
adjustments

Cumulative
adjustments
related toretirement
beneﬁt plans¥(615)¥4,038Cumulative eﬀects of changes in accounting policies
Restated balance

24,600

3

5,483

(615)

4,038

Total
accumulated Non-controlling Total net assetsinterests
othercomprehensive
income¥33,511¥42,834¥909,985

̶

(7)

(284)

33,51142,826

909,701

Income before income taxes
Depreciation and amortization (Note 12.2)
Impairment losses

38,592¥75,012

59,94562,223631

12,672

2,366

2,326

Equity in (income) losses of aﬃliates(7,167)(8,325)

Increase (decrease) in net deﬁned beneﬁt liability(1,242)(2,105)128377(1,108)(1,272)
8,768

Dividends from surplus(12,126)

Interest and dividend income

Net income attributable to owners of the parent

21,418Interest expenses

8,516

Loss on reduction of noncurrent assets

28,302

4,986

(290)

(1,394)Gain on contributions for construction(28,239)(2,530)Loss (gain) on sales of investment securities(3,680)(1,937)

Decrease (increase) in trade receivables(38,870)(7,652)

Decrease (increase) in inventories(2,560)(29,286)

Increase (decrease) in trade payables

11,561

1,308

Other

13,433

41,781

Subtotal

80,318

154,951

Interest and dividends received

3,148

3,795

Interest paid

(8,557)(8,626)

Income taxes (paid) refunded

6,934(18,029)

Net cash provided by operating activities

81,844132,091(131,491)(92,775)

Reversal of revaluation reserve for land

8

Purchase of treasury stock(47)

Disposal of treasury stock

36

Change in equity of parent arising from transactions

465

with non-controlling interest shareholders
Changes in equity due to purchase of treasury stock of̶consolidated subsidiaries
Changes in equity due to capital increase of122

consolidated subsidiaries
Change in scope of consolidation

92

Changes in equity in aﬃliates accounted(0)

for by equity-method treasury stock
Net changes in items other than shareholders equity
Total changes in items during the period
Balance as of March 31, 2022

(5,843)

3

15

1,050

(1,721)(6,494)2,188(4,306)(5,843)

3

15

1,050

(1,721)(6,494)

2,188

5,662

¥18,756¥7¥5,499¥435¥2,317¥27,016¥45,014¥915,363

Cumulative eﬀects of changes in accounting policies
Restated balance̶
18,756

7

5,499

435

2,317

27,016

̶
45,014915,363

Loss (gain) on sales of noncurrent assets

Cash ﬂows from investing activities:
Purchases of noncurrent assets
Proceeds from sales of noncurrent assets

681

320

Purchases of investment securities(5,142)(21,672)

Proceeds from sales of investment securities

9,187

4,733

̶

(28,636)

31,242

22,680Purchase of shares of subsidiaries resulting in change in scope of consolidation (Note 12.3)

Changes in items during the period:
Dividends from surplus(12,125)

Net income attributable to owners of the parent

46,952

Reversal of revaluation reserve for land0

Receipt of contributions for construction
Other
Net cash used in investing activities

(920)

2,132

(96,442)(113,216)

Cash ﬂows from ﬁnancing activities:

Purchase of treasury stock(53)

Net increase (decrease) in short-term borrowings(14,797)

5,180

Disposal of treasury stock101

Net increase (decrease) in commercial paper

20,000(40,000)

Proceeds from long-term debt

30,36060,210

Repayment of long-term debt

(44,971)(54,337)

Proceeds from new bonds issued

49,712

29,841

Redemption of bonds(10,000)(7,000)Change in equity of parent arising from transactions

11

with non-controlling interest shareholders
Changes in equity due to purchase of treasury stock of(26)

consolidated subsidiaries
Changes in equity due to capital increase of̶

consolidated subsidiaries
Change in scope of consolidation
Changes in equity in aﬃliates accounted
for by equity-method treasury stock
Net changes in items other than shareholders equity

Purchases of treasury stock
Dividends paid

(53)

(12,126)(12,125)

Dividends paid to non-controlling shareholders of consolidated subsidiaries

(564)

(853)

(82)

Proceeds from non-controlling shareholders associated with establishment ofconsolidated subsidiaries̶

14,756Other(2,424)(4,600)Net cash used in ﬁnancing activities

15,141(8,981)

2,173

(86)

(0)

473

(884)

1,676

29,12230,798

Total changes in items during the period

2,173

(86)

(0)

473

(884)

1,676

29,12265,576

Balance as of March 31, 2023

20,930

(78)

5,499

908

1,433

28,692

74,137980,940Eﬀect of exchange rate changes on cash and cash equivalents

1,441

1,904

Increase (decrease) in cash and cash equivalents

1,983

11,797

Cash and cash equivalents at beginning of year

25,222

29,422

Increase in cash and cash equivalents from newly consolidated subsidiary

2,215

̶

̶

155

29,422

41,375

Cash and cash equivalents at end of year (Note 12.1)

Hankyu Hanshin Holdings Integrated Report 2023

(47)

̶

Increase in cash and cash equivalents resulting from merger with unconsolidated
subsidiaries

105¥

Amortization of goodwill

Increase (decrease) in allowance for doubtful receivables

Changes in items during the period:

2023

Cash ﬂows from operating activities:

Hankyu Hanshin Holdings Integrated Report 2023

106

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Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements
1.

Framework for Preparing Consolidated Financial Statements

1.1

Method of preparation for consolidated financial statements

1.3

Special measures to ensure the appropriateness ofaccordance with the “Regulations Concerning Terminology, Forms and

The Company makes special efforts to ensure the appropriateness of

Preparation Methods of Consolidated Financial Statements” (Finance Ministry

its consolidated financial statements and other reports. In addition to

Ordinance No. 28 of 1976).

subscribing to related publications, it has joined the Financial AccountingStandards Foundation and participates in seminars and other events held by

1.2

Audit verification

Notes to the Consolidated Financial Statements

2016 are calculated using the straight-line method.

passes, performance obligation is deemed to have been fulfilled over theOverseas consolidated subsidiaries

period of validity of a commuter pass, and revenue is recognized according

consolidated financial statements and other reports

The Company’s consolidated financial statements were prepared in

the Foundation, audit firms and other relevant organizations to establish a

The Company’s consolidated financial statements for the fiscal year ended

system for understanding the accounting standards in detail and responding

March 31, 2023 (April 1, 2022 to March 31, 2023) were audited by KPMG

suitably to changes made to them. The Company also compiles and provides

AZSA LLC, as per Article 193-2(1) of Japan’s Financial Instruments andcommon manuals for preparing the consolidated financial information on

Exchange Act.

a Group-wide basis and arranges training courses for accounting staff ataffiliates.

Financial Section andCorporate DataII.

The straight-line method is mainly used.

to the validity period.

Intangible assets (excluding leased assets)

Retailing

Intangible assets (excluding leased assets) are amortized using the straight-

This business is mainly engaged in product sales at shops inside railway

line method.

stations. Revenue is recognized at the point products are handed over toInternal-use software is amortized by the straight-line method over its
useful life (mainly 5 years).

the customer. When the Group is deemed to be involved in product sales
as an agent, revenue is recognized at the net amount after deducting theamount paid to the supplier from the amount received from the customer.

III. Lease assets
Lease assets are depreciated using the straight-line method with the leaseII.

term as the useful life and a residual value of zero (the amount of guaranteed

Leasing

Real estate

residual value if there is an agreement for a residual value guarantee).

This business mainly owns and leases office buildings and commercial
facilities in Kita-ku, Osaka and other areas. In accordance with the

2.4.3

2.

Basis of Preparation of Consolidated Financial Statements

2.1

Scope of consolidation

I.

Accounting for significant allowances and provisions

Allowance for doubtful receivables

Allowance for doubtful receivables is provided based on the ratio of pastfinancial statements based on the closing date of each company, andloan loss experience for general accounts and individually estimated

2.1.1 Number and names of consolidated subsidiaries

major transactions conducted between the individual closing dates anduncollectible amounts for certain individual accounts.

The number of consolidated subsidiaries̶99.

the consolidated closing date have been adjusted for as necessary for the

The names of primary consolidated subsidiaries are listed on page 139.

consolidation.

From the consolidated fiscal year ended March 31, 2023, CPM Assets
Japan and PT CPM ASSETS INDONESIA have been included in the scope of

2.4

consolidation through its founding and share acquisition, respectively.

2.4.1 Valuation standards and methods for major assets

Additionally, during the consolidated fiscal year ended March 31, 2023,

I.

Accounting policies
Securities

accounting standards for lease transactions, revenue from the lease of
these properties is recognized as “Revenue from other sources” over thelease agreement period.
Real estate sales and other businesses
This business mainly markets condominium units and detached houses

II.

Provision for bonuses(buildings with land) for which it is involved from land acquisition through

The Company recognizes as provision for bonuses the amount expected toconstruction, as well as residential land lots to customers. Based on thebe paid to employees as bonuses for the fiscal year.

purchase and sales agreement with the customer, it is obliged to deliver
the property. Performance obligation is deemed to have been fulfilled at

2.4.4

Accounting methods for retirement benefits

the time each property is delivered to the customer, and at that point

Hankyu Kanko Bus Co., Ltd. was excluded from the scope of consolidation as

Available-for-sale securities:

In calculating the amount of retirement benefit obligations, the benefit

it was dissolved in an absorption-type merger with Osaka Kuko Kotsu K. K.

a.

Available-for-sale securities other than equity securities without market

formula method is used to attribute the estimated amount of retirement

to become the surviving company as of July 1, 2022. Osaka Kuko Kotsu K. K.,

prices:benefits to the period up to March 31, 2023.

changed its name to Hankyu Kanko Bus Co., Ltd. on the same date.

The market value method is applied. (Related valuation differences

Past service cost is recorded in expenses using the straight-line method

This business mainly provides customers with services related to accommodation,

are directly included under net assets and the cost of securities sold isover a certain number of years (mainly 10 years), which is within thebanquets, and restaurants, at directly managed hotels. Performance obligation for

determined by the moving average method.)

average remaining years of service of the employees at the time whenthese services is deemed to have been fulfilled at the time a service is provided

these costs are incurred.

to the customer, and at that point revenue is recognized.

2.1.2 Names of major nonconsolidated subsidiaries
Hankyu Mediax Co., Ltd.

b. Equity securities without market prices:

Nonconsolidated subsidiaries have been excluded from the scope of

The moving average cost method is applied.

revenue is recognized.
Hotel

Actuarial differences are recorded in expenses from the following

consolidation because the total amounts of their entire assets, sales, net

For investments in limited liability investment partnerships and similar

year using the straight-line method over a certain number of years (mainly

III. Entertainment

income or loss (amount equivalent to equity interests), retained earnings

investments, however, the Company’s share of assets held by such

10 years), which is within the average remaining years of service of theSports(amount equivalent to equity interests) and other figures are limited, and thepartnerships is recorded.

employees at the time when these costs are incurred.

a.

Derivatives

2.4.5

effect on the consolidated financial statements as a whole is negligible.

This business sells tickets to customers for the Hanshin Tigers
II.

2.2

Items related to application of equity-method accounting

The market value method is applied.

2.2.1 Number and names of affiliates for which the equity method is applied
Number of affiliates for which the equity method is applied̶10.
The names of the primary companies are listed on page 139.

professional baseball team’s home games mainly held at Hanshin

Details of the main performance obligations in key businesses of the

Koshien Stadium. Performance obligation for this service is deemed toCompany and its consolidated subsidiaries related to revenue from contracts

have been fulfilled at the time each home game is completed, and atwith customers and as to when such performance obligations are usuallya.

Land and buildings for sale:satisfied (point of time revenue is usually recognized) are as follows:

The specific cost method is applied. (Balance sheet values are calculatedI.

by writing down book values based on decreased profitability.)

Railway operations

Koshien Stadium upon request from advertisers or customers.

This business mainly provides railway transportation services and generates

Performance obligation for this service is deemed to have been fulfilled

The moving average cost method is applied. (Balance sheet values areincome from non-commuter passes and commuter passes. Income fromat the time an advertisement is displayed, and revenue is recognizedcalculated by writing down book values based on decreased profitability.)

non-commuter passes is transportation income generated by the use of

In the current consolidated fiscal year, Nikkei Culture Inc. was excluded

b. Other inventories:

2.2.2 Names of nonconsolidated subsidiaries and affiliates for which theequity method is not applied

This business places advertisements on signboards, etc. at Hanshin

Urban transportation

tickets and IC cards. Performance obligation is deemed to have beenover the period the advertisement is displayed.
c.

Sales of food, drink, and goods

2.4.2

fulfilled at the time each transportation service is provided to the customer,

This business sells food, drinks, and Tigers-related products principally

affiliates including OS Co., Ltd., to which the equity method does not apply

I.

Property and equipment (excluding leased assets)

and at that point revenue is recognized. As for income from commuterat Hanshin Koshien Stadium. Revenue from the sale of such products

are accounted for using the cost method rather than the equity method

The Company and its domestic consolidated subsidiaries

passes, performance obligation is deemed to have been fulfilled over theis recognized at the point products are handed over to the customer.

because the total amounts of their net income or loss (amount equivalent toa.

Replacement assets of railway operations:period of validity of the commuter pass, and revenue is recognized according

When the Group is deemed to be acting as an agent in product sales,

Replacement method (mainly the declining-balance method) is applied.

to the validity period.

revenue is recognized at the net amount after deducting the amountand other figures are limited, and the effect on the consolidated financial
statements as a whole is negligible.

2.3

Items related to fiscal year-ends, etc., for consolidated
subsidiaries

Depreciation methods for major depreciable assetsthat point revenue is recognized.
b. Advertising signboards

The nonconsolidated subsidiaries including Hankyu Mediax Co., Ltd., andequity interests), retained earnings (amount equivalent to equity interests)

107

Standards for recognition of significant revenues and expenses

III. Inventories

from the scope of equity method application due to the completion ofliquidation.

Professional baseballb. Other property and equipment:

paid to the supplier from the amount received from the customer.

While property and equipment (excluding leased assets) are depreciatedAutomobile

mainly by the declining balance method, some assets are depreciatedThis business primarily provides transportation services with fixed-routeStageby the straight-line method.

buses, airport limousine buses, and highway buses, and generates incomea.

The Takarazuka Revue

However, regarding the above-mentioned “Replacement assets offrom non-commuter passes and commuter passes. Income from non-This business sells tickets to customers and stages performances of theOf the consolidated subsidiaries, the closing date of PT CPM ASSETS

railway operations” and “Other property and equipment,” depreciation

commuter passes is transportation income generated by cash sales of

Takarazuka Revue held mainly at the Takarazuka Grand Theater and

INDONESIA, HANKYU HANSHIN EXPRESS (USA) INC. and 24 otherof buildings acquired on or after April 1, 1998 (excluding facilities

tickets and use of IC cards. Performance obligation is deemed to have been

the Tokyo Takarazuka Theater. Performance obligation for this service

companies is December 31, and that of Nihon Protec Co., Ltd. is January

attached to buildings) and depreciation of facilities and structures that

fulfilled at the time each transportation service is provided to the customer,

is deemed to have been fulfilled at the time a performance is staged,

31. The consolidated financial statements have been prepared using theare attached to buildings and which were acquired on or after April 1,

and at that point revenue is recognized. As for income from commuterand at that point revenue is recognized.

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

108

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Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statementsb. Sales of food, drink, and goods

Notes to the Consolidated Financial Statements

II.

Hedging instruments and hedged items

This business sells food, drinks, and Takarazuka-related products

Main hedging instruments and hedged items are as follows:

principally at the Takarazuka Grand Theater. Revenue from the sale ofa. Hedging instruments: Forward exchange contracts, currency swap

3.

Significant Accounting Estimates

Fiscal year ended March 31, 2022

such products is recognized at the point products are handed over tocontracts and currency option contracts

Accounting estimates are reasonably calculated based on the information

the customer.

Hedged items: Foreign currency receivables and payables and futureavailable when preparing the consolidated financial statements. Among theforeign currency transactions

amounts recorded in the consolidated financial statements for the fiscal year

IV. Information and communication technology

Financial Section andCorporate Datab. Hedging instruments: Interest rate swap contracts and interest rate

3.2.2

Other information that assists users of financial statements inunderstanding the nature of the estimates

I.

Method used to calculate the amount recorded in the consolidated
financial statements for the fiscal year ended March 31, 2023

ended March 31, 2022 based on accounting estimates, the items that may

Deferred tax assets were recorded based on future taxable income, etc.,

Information services

option contracts

have a significant impact on the consolidated financial statements for theestimated in the medium-term management plan pursuant to the “Implementationa.

Hedged items: Loans payable and bonds

next fiscal year are as follows.

Guidelines on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26).
II.

Entrusted software development
This business plans, designs, and develops software based on contracts
with customers, and is obliged to deliver the software to customers.

III. Hedging policy

3.1

Recoverability of deferred tax assets

Such contracts entail obligation mainly over a certain period of time,

The Group is exposed to the risk of foreign exchange and interest rate

3.1.1

Amount recorded in the consolidated financial statements for theand revenue is recognized according to the degree of progress madefluctuations and uses derivatives to hedge risks.

in fulfilling the performance obligation. Progress is measured based on

fiscal year ended March 31, 2022

consolidated financial statements for the fiscal year ended March 31, 2023
Estimates of future taxable income were based on the medium-term

Deferred tax assets of 59,531 million yen (amount before offsetting deferredmanagement plan. Additionally, the following assumptions were made to

tax liabilities)

reflect the effects of COVID-19 on the accounting estimates.

is evaluated semiannually using the comparison and analysis method.

3.1.2

recover through three roughly classified steps as below.

services for a certain period of time to customers to whom systems are

V. Other risk management methods concerning hedge accountingI.

delivered. Performance obligation for such services is deemed to haveInternal rules regarding the segregation of duties, maximum transaction

been fulfilled over a period of time, and revenue is recognized over theamounts, etc., have been established for the use of derivative transactions

Deferred tax assets were recorded based on future taxable income, etc.,

contract period with the customer.

based on which derivative transactions are used. The implementation andestimated in the medium-term management plan pursuant to the “Implementation

management of derivative transactions are carried out by the accounting

Guidelines on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26).

the percentage of costs incurred by the end of each reporting period

IV. Method for evaluating hedge effectivenessto the total expected costs.

Other than when the effectiveness of hedges is obvious, hedge effectivenessb. System operation and maintenance services

Socioeconomic activities that affect the Group are expected to graduallyThis business mainly provides software operations and maintenanceBroadcasting and communications

department with the approval of the decision makers in each Group

This business mainly provides internet, cable television, and fixed-line

company. An internal control system has been developed to ensure that

telephone services. Performance obligation for such services is deemed tothe contract signing and termination comply with the internal rules.

the contract period with the customer.

2.4.8

Method and period of amortization of goodwill

V. Travel

goodwill resulting from the management integration with Hanshin ElectricThis business mainly offers agent-organized tour packages. Performance

Railway Co., Ltd. in the fiscal year ended March 31, 2007 is being amortized

obligation for these services is deemed to have been fulfilled at the timein equal amounts over 20 years.

a tour ends, and at that point revenue is recognized. Aside from travel
2.4.9

under contract to public offices and local government agencies. For thesein neighborhoods in Japan and gradually extends beyond. The effects offinancial statements for the fiscal year ended March 31, 2022

physical distancing are also gradually mitigated.

Scope of cash and cash equivalents included in consolidated

II.

Major assumptions used to calculate the amounts recorded in theextent.
However, the Group considers that its business environment will not fully
return to its pre-COVID-19 state even in the third step.

management plan. Additionally, the following assumptions were made toreflect the effects of COVID-19 on the accounting estimates.
Socioeconomic activities that affect the Group are expected to gradually
recover through three roughly classified steps as below.

III. Impact on the consolidated financial statements for the next fiscal year
The timing and amount of taxable income may be affected by uncertain future
economic conditions and COVID-19 infection status. If the actual timing andFirst step (until September 2022): The movement of people resumes

amount of taxable income differ from estimates, the amount of deferred tax

in neighborhoods in Japan and gradually extends beyond. The effects ofassets that are considered recoverable may fluctuate and have a significant

physical distancing are also gradually mitigated.

impact on the consolidated financial statements for the next fiscal year.

Second step (October 2022‑September 2023): People come and go not

In preparing the consolidated statements of cash flows, cash on hand, readily

the customer, based on the judgment that performance obligation will beavailable deposits and short-term highly liquid investments without material

Third step (October 2023 and beyond): The impact of COVID-19 diminishes,

fulfilled over a certain period of time.

risk of change in value and with maturities not exceeding three months at theand domestic and overseas economic activities recover to a considerable

time of purchase are considered to be cash and cash equivalents.

extent.

2.4.10 Other significant matters for preparing consolidated financial

return to its pre-COVID-19 state even in the third step.

only within Japan but throughout the world, recovering gradually.

VI. International transportation

3.3

Impairment of noncurrent assets

3.3.1

Amount recorded in the consolidated financial statements for the
fiscal year ended March 31, 2023

As described in "Notes (to Consolidated Statements of Income)," impairment

However, the Group considers that its business environment will not fullystatements

losses of 12,672 million yen were recorded for real estate leasing businessassets and other assets. Property and equipment in the real estate businessamounted to 1,058,617 million yen.

satisfied at the time cargo is loaded onto an aircraft, and for imports, at theI.

Accounting for contributions for construction in railway operations

III. Impact on the consolidated financial statements for the next fiscal year

time of delivery, and revenue is recognized at these points.

The Company receives contributions for construction from local governments

The timing and amount of taxable income may be affected by uncertain futureand other organizations that cover a portion of construction expenses arising

economic conditions and COVID-19 infection status. If the actual timing andBasis for converting significant assets and liabilities in foreignfrom the construction of continuous grade separations in railway operations.

amount of taxable income differ from estimates, the amount of deferred tax

currencies into Japanese yen

When construction is completed, noncurrent assets acquired as a result ofassets that are considered recoverable may fluctuate and have a significant

The assets and liabilities of overseas subsidiaries are converted into yen

accepting these contributions for construction are recognized at acquisition

impact on the consolidated financial statements for the next fiscal year.

based on the spot exchange rate on the balance sheet date, and income

cost after deducting the amount of the contributions.

2.4.6

Third step (October 2023 and beyond): The impact of COVID-19 diminishes,

consolidated financial statements for the fiscal year ended March 31, 2022

statements of cash flows

logistics. For exports, the performance obligation is deemed to have been

Second step (October 2022‑September 2023): People come and go not
only within Japan but throughout the world, recovering gradually.
and domestic and overseas economic activities recover to a considerable

services, the Company recognizes revenue over the contract period with

As a forwarder, this business mainly carries out transportation in international

First step (until September 2022): The movement of people resumes

Method used to calculate the amount recorded in the consolidated

Estimates of future taxable income were based on the medium-term
Goodwill is amortized, in general, in equal amounts over 5 years. The

business, the Company provides facility management and other services

Other information that assists users of financial statements inunderstanding the nature of the estimateshave been fulfilled over a period of time, and revenue is recognized over

3.3.2

Other information that contributes to user understanding withconsolidated financial statements regarding the nature of accounting
estimates

I.

Method used to calculate amounts recorded in consolidated financial
statements for the fiscal year ended March 31, 2023

The Group includes each business or property as group assets for accountFiscal year ended March 31, 2023

and expenses of overseas subsidiaries are converted into yen based

In the consolidated statements of income, gain on contributions foron the average exchange rate during the relevant period. Differences inconstruction is recognized in extraordinary income, and the amounts

Accounting estimates are reasonably calculated based on the information

When an indication of impairment exists, the Group determines

conversion are included in foreign currency translation adjustments andequivalent to the contributions for construction, which was deducted fromavailable when preparing the consolidated financial statements. Among thewhether an impairment loss should be recognized by comparing the total

non-controlling interests in the net assets section.

the acquisition cost of noncurrent assets, is recognized in extraordinary

amounts recorded in the consolidated financial statements for the fiscal year

undiscounted future cash flows from the asset group with the carrying

loss as loss on reduction of noncurrent assets.

ended March 31, 2023 based on accounting estimates, the items that may

amount. Based on the determination, if the total undiscounted future cash

have a significant impact on the consolidated financial statements for theflows are less than the carrying amount and recognizing an impairment loss

next fiscal year are as follows.

is deemed necessary, the carrying amount is reduced to the recoverable

2.4.7
I.

Significant hedge accounting methods

Method of hedge accounting

Deferred hedge accounting is applied.
Exceptional accounting applies to interest rate swaps that satisfy therequirements for exceptional accounting treatment for interest rate swaps.
Designation accounting applies to foreign currency-denominated109

Major assumptions used to calculate the amounts recorded in the

II.

Adoption of the Group tax sharing system

A Group tax sharing system has been adopted.

amount (net selling price or value in use, whichever is higher) and the amount

3.2

Recoverability of deferred tax assets

3.2.1

Amount recorded in the consolidated financial statements for theof the reduction in carrying amount is recognized as an impairment loss.

fiscal year ended March 31, 2023

receivables and payables that have forward exchange contracts and which

Deferred tax assets of 51,049 million yen (amount before offsetting deferredsatisfy the requirements for designation accounting.

tax liabilities)

Hankyu Hanshin Holdings Integrated Report 2023

management purposes.

Hankyu Hanshin Holdings Integrated Report 2023

110

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Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

II.

Financial Section andCorporate Data

Notes to the Consolidated Financial Statements

Key assumptions used in the calculation of amounts reported inIII. Impact on consolidated financial statements for the next fiscal year

consolidated financial statements for the current fiscal year

Future cash flows may be affected by other uncertain future economic

Estimates of future cash flows are based on the medium-term management

conditions and fluctuations in market values, in addition to the future status ofplan, and the same assumptions as in “3.2 Recoverability of deferred tax

COVID-19 infection, and if actual results differ from the estimates, there may

assets” above are made with respect to the impact of COVID-19.

be a significant impact on the consolidated financial statements for the next
fiscal year.

7.

Additional Information

7.1

Performance-based stock compensation plan for directors,

7.1.2 Shares in the Company remaining under the trustetc., of the Company

Shares in the Company remaining under the trust were recorded as treasury

7.1.1 Outline of transaction

stock in the net assets section on a book value basis for trust (excluding

To further enhance motivation to improve corporate value and business

ancillary expenses). The book value of and the number of shares of theperformance, and to provide an incentive to improve shareholder value, thetreasury stock at the end of the fiscal year ended March 31, 2022 wereCompany has introduced a stock compensation system (hereinafter referred

1,575 million yen and 399,468 shares, and at the year ended March 31, 2023

to as the “System”) for representative directors at the Company.

were 1,475 million yen and 374,149 shares, respectively.

Moreover, Hankyu Corporation, Hanshin Electric Railway Co., Ltd., and4.

Changes in Accounting Policies

4.1

Application of Implementation Guidance on Accounting

for the foreseeable future pursuant to the transitional treatments stipulated inStandard for Fair Value Measurement

Paragraph 27-2 of the same Guidance. This change in accounting policies has

The Group began applying“Implementation Guidance on Accounting

Hankyu Hanshin Properties Corp. have adopted the System for full-time

no impact on consolidated financial statements.

Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June

Regarding notes on investment trusts, which are included in matters17, 2021; hereinafter“Fair Value Measurement Accounting Standard

regarding the breakdown of financial instruments by each fair value level in

Implementation Guidance”) at the beginning of the current consolidated fiscal

notes on“Financial Instruments,”pursuant to Paragraph 27-3 of the“Fairyear. The Group has decided to apply new accounting policies outlined in the

Value Measurement Accounting Standard Implementation Guidance,”notes“Fair Value Measurement Accounting Standard Implementation Guidance”

concerning the previous consolidated fiscal year are not stated.

5.

Standards and Guidance Not Yet Adopted

5.1

Accounting Standard for Fair Value Measurement• “Accounting Standard for Corporate Taxes, Inhabitants Taxes, andEnterprise Taxes”(ASBJ Statement No. 27, October 28, 2022)• “Accounting Standard for Presentation of Comprehensive Income”(ASBJ
Statement No. 25, October 28, 2022)• “Guidance on Accounting Standard for Tax Effect Accounting”(ASBJ
Guidance No. 28, October 28, 2022)

released.

directors and others based on performance and position.

8.

Consolidated Balance Sheets

8.1

Balances of receivables, contract assets and contract liabilities

Accumulated contributions for construction directly deductedfrom the acquisition cost of noncurrent assets
Millions of yen

2023¥ 104,967¥ 108,741• Tax effect on the sale of shares of a subsidiary (shares of a subsidiary or

Contract assets

6,586

10,539Contract liabilities

41,57363,754

an affiliate) when the corporate group tax system is applied.

8.3

Millions of yen
2022• Classification of tax expenses (taxation on other comprehensive income)

2022

2023

¥ 474,732¥ 476,082

5.1.2 Effective date

8.2

Accumulated depreciation of property and equipment

March 31, 2025.

Statement No. 28, etc.”) completed the transfer of the Japanese Institute

The Company and its consolidated domestic subsidiaries are currentlyof Certified Public Accountants’ practical guidance on tax effect accounting

in the process of determining the effects of these new standards on theto the Accounting Standards Board of Japan (ASBJ). In the course of theconsolidated financial statements.

Consolidated Statements of Income

equivalent to the exchange value of shares in the Company will be paid to

Receivables from contracts withcustomers

5.1.3 Effects of the application of the standards

6.1

The System uses an officer compensation BIP (Board Incentive Plan)trust under which shares in the Company will be provided to, and money

after the issuance of ASBJ Statement No. 28, etc., were deliberated andto Accounting Standard for Tax Effect Accounting,” etc. (hereinafter “ASBJ

Changes in presentation method

Properties Corp.

deliberations, the following two issues, which were to be discussed again

In February 2018, issuance of ASBJ Statement No. 28 “Partial Amendments

6.

of Japan and employees of other companies on loan to Hankyu Hanshin

originating from contracts with customers are as follows:

The guidance is to be effective from the beginning of the fiscal year ending
5.1.1 Outline

directors and corporate officers, excluding outside directors and nonresidents

Millions of yen
2022

2023

¥ 1,217,145¥ 1,255,057

As a result of the above, in the Consolidated Statements of Income

Employment adjustment subsidies and COVID-19-related losses, which

for the fiscal year ended March 31, 2022, ¥9,234 million in “Employment

were separately recorded under extraordinary income and extraordinary

adjustment subsidies” under “Extraordinary income” and ¥9,518 million inloss, respectively, in the fiscal year ended March 31, 2022, are included in“COVID-19-related losses” under “Extraordinary loss” have been reclassified“Other” under “Extraordinary income” and in “Other” under “Extraordinary

as “Other” under “Extraordinary income” and “Other” under “Extraordinary

loss,” respectively, in the fiscal year ended March 31, 2023, due to theirloss,” respectively.

decreased significance.

111

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Creating Real Value:
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Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

8.4

Notes to the Consolidated Financial Statements

Pledged assets and secured liabilities

The following table shows the assets pledged as collateral. Amounts in parentheses () indicate those related to a railway foundation.

Millions of yen

9.

Consolidated Statements of Income

9.1

Breakdown of revenue from operations is as follows:¥ 206,416¥ (206,416)¥ 221,142¥ (205,499)

Machinery, equipment and vehicles

49,797(49,797)

48,279(48,279)Land

240,971(240,971)

277,721(240,864)

Other

2,014

(2,014)2,640(2,640)

109

(109)

109

(109)

Investment securities

159

(̶)

93

(̶)

Other

524

(̶)

592

(̶)

Total

499,994(499,310)

550,579(497,393)

Intangible assets:

2023

Revenue from contracts withcustomers¥ 668,522¥ 881,410

Revenue from other sources

77,69486,889Total

746,217968,300

9.2

Millions of yen
Retirement beneﬁt expenses

2022

2023

¥ 6,285¥ 6,154

3,854

4,467

Breakdown of selling, general and administrative expenses isshown below.
Millions of yen

In addition to the above, the Company pledged investment securities (fiscal year ended March 31, 2022: 800 million yen, fiscal year ended March 31, 2023:
537 million yen) as collateral for loans of third parties.
) indicate those related to a railway foundation.
Millions of yen
2023

2022

shown below.

2022

Provision for bonuses

Investments and other assets:

The following table shows the secured liabilities. Amounts in parentheses (The retirement benefit expenses and the main expense items
provision included in the costs of revenues from operations are

Millions of yen

Property and equipment:

Other

9.3

and monetary amounts within the amounts of allowance and

2023

2022
Buildings and structures

Financial Section andCorporate Data

2022

2023

¥ 13,381¥ 14,160

Expenses

9,205

10,977

Taxes

1,075

1,103

Depreciation and amortization

1,110

1,245

Personnel expenses

Amortization of goodwill

2,366

2,326

Total

27,13929,813Current liabilities:
Short-term borrowings¥

18,531

Other¥(18,531)¥

11,267¥(11,049)

123

(̶)

81

(̶)

Long-term debt

117,050(117,050)

147,175(131,134)

Total

135,705(135,582)

158,524(142,184)

9.4

8.5

Information is omitted as significance was negligible.
Fiscal year ended March 31, 2023
Gain on sales of noncurrent assets is largely attributable to sales of land.

The following table shows the securities of nonconsolidated subsidiaries and affiliates.
Millions of yen

Investment securities

9.5

2022

2023

¥ 258,898¥ 286,144

Information is omitted as significance was negligible.

8.7

Two consolidated subsidiaries and an equity-method affiliate revaluated

The Company and its subsidiaries have provided liability guarantees for loans

land for business use based on the Law Concerning Revaluations of Landof the companies, etc., listed below.

(Law No. 34, promulgated on March 31, 1998) and the Law to Partially
Modify the Law Concerning Revaluations of Land (Law No. 19, promulgatedon March 31, 2001). Of the valuation differences identified as a result of
this, the consolidated subsidiaries recorded the amount corresponding to
the taxes on the valuation difference in the liability section as “Deferred tax
liabilities related to land revaluation” and the amount attributable to minority
shareholders as “Non-controlling interests.” The amount remaining after
subtracting these was recorded in the net assets section as “Revaluation

Contingent liabilities

corresponding to its equity in the valuation difference (after subtracting taxes)in the net assets section as “Revaluation reserve for land.”The revaluation amounts were determined based on the revaluatedvalue of noncurrent assets provided for in Article 2, Paragraph 3 ofthe Enforcement Ordinance for the Law Concerning Land Revaluation(Ordinance No. 119, promulgated on March 31, 1998).

Millions of yen
Nishi-Osaka Railway Co., Ltd.

¥ 15,525

Overseas aﬃliates

8,992

Borrowers on loans for purchases of land and buildings

8,089

Other (three companies)
Total

512

Millions of yen
2022

2023

¥ (6,040)¥ (5,911)

Hankyu Hanshin Holdings Integrated Report 2023

Use
Real estate leasing business assets, etc. (24)Type
Buildings and structures, etc.

RegionAmountOsaka, etc.

¥ 12,672

9.5.1 Method of asset grouping
Our Group includes each business or property as group assets for account management purposes.

33,1209.5.2 Background to recognizing impairment loss
The book value of noncurrent asset groups for which recovery of the investment amount was deemed difficult due to a decline in profitability adversely affected

Fiscal year ended March 31, 2023
Nishi-Osaka Railway Co., Ltd.

¥ 14,547

Overseas aﬃliates

12,699Borrowers on loans for purchases of land and buildings

6,690

Other (three companies)
Total• Date of revaluation: March 31, 2002

The Group recorded an impairment loss for the asset groups shown below.
Millions of yen

Millions of yen• Revaluation method

Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2022

reserve for land.” The equity-method affiliate recorded the amount

113

Impairment losses

Fiscal year ended March 31, 2022

8.6

Diﬀerence between the market value
as of March 31 of the lands for which
reevaluation was made and the bookvalue after reevaluation

Gain on sales of noncurrent assets

Fiscal year ended March 31, 2022

Non-current liabilities:

995
34,933

In addition to the above, a subsidiary of the Company submitted letters ofawareness for management guidance (fiscal year ended March 31, 2022:
1,459 million yen, fiscal year ended March 31, 2023: 1,531 million yen) in
connection with the fund procurement of overseas affiliates.

by COVID-19 was reduced to a recoverable amount, and the resulting decrease in the book value was recorded as an impairment loss (12,672 million yen) under
extraordinary loss.
9.5.3 Breakdown of loss on impairment
Millions of yen
Buildings and structures¥ 11,395

Other

1,276

Total

12,6729.5.4 Method used to calculate recoverable amountThe recoverable amount is mainly based on net realizable value.
For net realizable value, the amount based on appraisal value in accordance with the real estate appraisal standards, etc. is used.

Hankyu Hanshin Holdings Integrated Report 2023

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Creating Real Value:
The Processes

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

10. Consolidated Statements of Comprehensive Income

11. Consolidated Statements of Changes in Net Assets

Reclassification adjustments and tax effects related to other comprehensive income

Fiscal year ended March 31, 2022
Millions of yen

11.1

2023

2022

Types and total number of shares issued, and types and number of shares of treasury stock(Thousands of shares)

Valuation diﬀerence on available-for-sale securities:
Increase (decrease) during the year¥

(7,834)¥

5,434

Reclassiﬁcation adjustments(3,680)(1,908)Subtotal, before tax(11,515)3,525

Tax (expense) or beneﬁt

2,881(1,665)

Valuation diﬀerence on available-for-sale securities(8,633)

1,860

Increase (decrease) during the year

5

(128)

Reclassiﬁcation adjustments̶̶

Subtotal, before tax

5

(128)

Tax (expense) or beneﬁt

(1)

42

Deferred gains or losses on hedges

4

(86)

2,191

(1,340)

̶

̶

2,191

(1,340)

̶

̶

2,191

(1,340)(1,764)(162)

Number of shares as of April 1, 2021
Common stock
Total

Reclassiﬁcation adjustments
Subtotal, before tax
Tax (expense) or beneﬁt
Foreign currency translation adjustments
Increase (decrease) during the year
Reclassiﬁcation adjustments
Subtotal, before tax
Tax (expense) or beneﬁt

(918)

(873)

(2,682)(1,035)928

276(1,754)(759)

Increase (decrease) during the year

310

713

Reclassiﬁcation adjustments

(202)

14

Remeasurements of deﬁned beneﬁt plans
Share of other comprehensive income of associates accounted for using equity method:

Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income

Total

108

727

(8,084)402

Number of shares as of March 31, 2022

254,281̶̶254,281254,281̶̶254,281

13,32713

913,332

13,32713

913,332

Notes:
1.

The number of shares of treasury stock at the end of the fiscal year ended March 31, 2022 included 399,468 shares in the Company owned by the officer’s
compensation BIP trust.

(Overview of reasons for fluctuations)2. The increase of 13 thousand shares of treasury stock of common stock consisted of 13 thousand shares acquired upon the purchase of odd-lot shares.
3

The decrease of 9 thousand shares of treasury stock of common stock consisted of 8 thousand shares delivered by the officer's compensation BIP trust,
0 thousand shares due to the sale of odd-lot shares and 0 thousand shares due to a change in the equity ratio against affiliates to which the equity method
is applicable.

11.2

Remeasurements of deﬁned beneﬁt plans:

Decrease in number of shares

Treasury stock, at cost:
Common stock (Notes 1, 2 and 3)

Foreign currency translation adjustments:

Increase in number of shares

Number of shares issued:

Deferred gains or losses on hedges:

Increase (decrease) during the year

Financial Section andCorporate Data

Creating Real Value:
The Foundations

Items concerning stock acquisition rights

There is no relevant item.

11.3

Items related to dividends

11.3.1Dividends paid
Dividends paid

Dividend per share(Millions of yen)

(Yen)

(Resolution)

Type of shares

June 16, 2021
Annual General Meetingof Shareholders

Common stock¥ 6,063

October 29, 2021
Board of Directors

Common stock

6,062

Record date

Effective date¥ 25

March 31, 2021

June 17, 2021

25

September 30, 2021

December 1, 2021

Notes:
1. The dividends by a resolution at the Annual General Meeting of Shareholders on June 16, 2021 included 10 million yen of dividends for the shares in the
Company owned by the officer’s compensation BIP trust.
2. The dividends by a resolution of the Board of Directors on October 29, 2021 included 9 million yen of dividends for the shares in the Company owned by theofficer’s compensation BIP trust.
11.3.2

Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
(Resolution)

Type ofsharesJune 15, 2022
Annual General Meetingof Shareholders

Commonstock

Dividends paid
(Millions of yen)
¥ 6,062

Source ofdividends
Retainedearnings

Dividend per share
(Yen)
¥ 25

Record date

Effective date

March 31, 2022

June 16, 2022

Note: The total amount of dividends includes 9 million yen of dividends for the shares in the Company owned by the officer’s compensation BIP trust.

115

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ProfileFinancial Section and Corporate Data

Creating Real Value:
The Processes

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

12. Consolidated Statements of Cash Flows

Fiscal year ended March 31, 2023

11.4

12.1

Types and total number of shares issued, and types and number of shares of treasury stock

Relationship between cash and cash equivalents at fiscal year-end and amounts shown on consolidated balance sheets(Thousands of shares)
Number of shares as of April 1, 2022

Increase in number of shares

Decrease in number of shares

Common stockTotal

254,281̶̶254,281254,281̶̶254,281

13,33271

25

13,377

13,33271

25

13,377

Treasury stock, at cost:
Common stock (Notes 1, 2 and 3)
Total
Notes:The number of shares of treasury stock at the end of the fiscal year ended March 31, 2023 included 374,149 shares in the Company owned by the officer’s
compensation BIP trust.

Cash and deposits in the consolidated balance sheets

2. The increase of 71 thousand shares of treasury stock of common stock consisted of 57 thousand shares of treasury stock (shares of the Company’s own
stock) due to a change in the equity ratio against affiliates to which the equity method is applicable, and 13 thousand shares created by the purchase of oddlot shares.
The decrease of 25 thousand shares of treasury stock of common stock consisted of 25 thousand shares of treasury stock (shares of the Company’s own

11.6.1

Items concerning stock acquisition rights(1,909)(1,501)

29,422

41,375

12.2
Depreciation and amortization include depreciation costs recorded as “COVID-19-related losses” (as “Other” under “Extraordinary loss”).

Major asset and liability items in the company newly consolidated through stock acquisition

Fiscal year ended March 31, 2023
A breakdown of assets and liabilities for PT CPM ASSETS INDONESIA upon consolidation through share acquisition and the relationship between shareacquisition price and expenditure for the acquisition (net amount) are as follows:

Current assets¥ 5,535

Noncurrent assets

59,249Current liabilities

325

Non-controlling interests
Dividends paid

Dividend per share(Millions of yen)

(Yen)

June 15, 2022
Annual General Meetingof Shareholders

Common stock¥ 6,062

October 31, 2022
Board of Directors

Common stock

6,062

Effective date¥ 25

March 31, 2022

June 16, 202225

September 30, 2022

December 1, 2022

1. The dividends by a resolution at the Annual General Meeting of Shareholders on June 15, 2022 included 9 million yen of dividends for the shares in the
Company owned by the officer’s compensation BIP trust.
2. The dividends by a resolution of the Board of Directors on October 31, 2022 included 9 million yen of dividends for the shares in the Company owned by the

29,766

Cash and cash equivalents(1,130)

Net: Expenditures for acquisition

28,636

13. Lease Transactions<As lessee><As lessor>

Future lease payments for noncancelable leases in connection with operating

Future lease receivables for noncancelable leases in connection withlease transactions

operating lease transactions

officer’s compensation BIP trust.

Millions of yen

Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
Type ofshares(12,430)

Acquisition cost for shareholders
Record dateNotes:

June 16, 2023
Annual General Meetingof Shareholders(624)

Foreign currency translation adjustment

Dividends paid

(Resolution)(21,709)

Gain on bargain purchase

Items related to dividends

Type of shares

11.6.2(579)

Noncurrent liabilities(Resolution)

Dividends paid
(Millions of yen)

Commonstock¥ 6,062

Source ofdividends
Retainedearnings

Dividend per share
(Yen)
¥ 25

Record date

March 31, 2023

¥ 42,876

Millions of yen

There is no relevant item.

11.6

2023

¥ 31,331

Cash and cash equivalents in the cash ﬂow statements

stock) delivered by the officer’s compensation BIP trust, and 0 thousand shares due to the sale of odd-lot shares.

11.5

2022
Deposits with maturities over 3 months

12.3(Overview of reasons for fluctuations)

3

Millions of yen

Number of shares as of March 31, 2023

Number of shares issued:

1.

Financial Section andCorporate Data

Creating Real Value:
The Foundations

Effective date

2022

2023

Due within one year

¥ 7,008¥ 6,929

Due after one year

59,896

Total

66,905

Millions of yen
2022

2023

Due within one year

¥ 3,939¥ 3,91460,541

Due after one year

27,17324,47067,470Total

31,11328,385June 19, 2023

Note: The total amount of dividends includes 9 million yen of dividends for the shares in the Company owned by the officer’s compensation BIP trust.

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Profile

Financial Section and Corporate Data

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

Financial Section andCorporate Data

Notes to the Consolidated Financial Statements

14. Financial Instruments

5. Redemption and repayment schedule of monetary claims and investment securities with maturities after the consolidated closing date

14.1

Matters regarding financial instruments

the Group companies are concentrated and used effectively through the

14.1.1

Policy on financial instruments

centralization of Group funds by using a cash management system. The

Fiscal year ended March 31, 2022
Millions of yen
Due after one
Due within one
year through five
year
years

Due after five
years throughten years

Due after ten
years

It is the Group’s policy to limit the investment of its funds to short-term

immediate raising of funds from financial institutions became possible

deposits which are highly secure, and the Group raises funds mainly

through the establishment of backup financing, such as commitment lines.

through loans from financial institutions, bonds and commercial paper.

In addition, the Company maintains a proper balance between direct

Cash and deposits¥ 31,331

Derivative transactions are used to avoid risk, as discussed later, and it isfinancing and indirect financing and diversifies the raising of funds by using

Trade receivables

112,568̶̶̶

our policy to refrain from speculative transactions.

multiple financial institutions, thus securing liquidity.

Investment securities:

14.1.2

Details of the financial instruments used, the risk involved and theprescribe the division of duties and transaction limits. Forward exchange

65

94

̶

300

risk management system

contracts are used to hedge exchange rate fluctuation risk involved in a

143,965

94

̶

300

Regarding the use of derivative transactions, internal regulations

Trade receivables, namely note receivables and trade account receivables,

portion of the foreign currency-denominated assets and liabilities. The

are exposed to the credit risk of customers. The Group limits its exposure

purpose of interest rate swap transactions is to hedge the interest rate

to this credit risk by controlling due dates and balances by customer andfluctuation risk of certain loans. These derivative transactions involve creditby making periodical checks of the credit conditions of major customers

risk because if the other party to a transaction defaults under the terms

pursuant to the internal regulations of each company.

of contract or becomes bankrupt, then the benefit that would have been

Available-for-sale securities with maturities(government bonds, etc.)
Total

¥

̶

¥

̶

¥

̶

Fiscal year ended March 31, 2023
Millions of yen
Due after one
Due within one
year through five
year
years

Due after five
years throughten years

Due after ten
years

Investment securities consist mainly of stocks and bonds and are

obtained in the future if the transaction had continued would not be

Cash and deposits¥ 42,876

exposed to market price fluctuation risk. However, fair values and theobtained. However, credit risk is limited by carrying out transactions only

Trade receivables

120,067̶̶̶financial condition of the issuers are checked periodically, and the risk

with financial institutions with high credit ratings.

Investment securities:
60

33

̶

300

163,004

33

̶

300

More information regarding hedging instruments and hedged items,

management system is confirmed.
Almost all trade payables, namely note payables and trade accounthedging policy and the method used to evaluate the effectiveness of hedges

payables, have a payment date that falls within one year. Some assets andrelated to hedge accounting for derivative transactions is described in Noteliabilities denominated in foreign currencies are exposed to exchange rate

2.4.7, “Significant hedge accounting methods” under Note 2.4, “Accounting

fluctuation risk (market risk), which is limited through forward exchange

policies,” outlined in Note 2, “Basis of Preparation of Consolidated Financial

contracts.

Statements.”

Available-for-sale securities with maturities(government bonds, etc.)
Total

14.1.3¥̶¥̶Fiscal year ended March 31, 2022
Millions of yen
Due after one
Due within one
year through five
year
years

Supplementary explanation regarding fair value, etc. of financial
instruments

used mainly to raise long-term funds necessary for capital investment

̶

6. Amount of planned redemption and repayment of bonds and long-term debt after the consolidated closing date

Short-term borrowings and commercial paper are used mainly to raise
short-term funds for working capital, and long-term debt and bonds are¥

Due after five
years throughten years

Due after ten
years¥ 75,000

plans. Some floating-rate debt is exposed to interest rate fluctuation risk

As fluctuation factors are incorporated in the calculation of the fairBonds

¥ 7,000¥ 85,000¥ 70,000(market risk), which is limited by fixing interest rates through interest

values for financial instruments, these values may fluctuate if different

Long-term debt

54,271

311,710

248,879

88,886rate swap transactions. In addition, liquidity risk̶the risk that payment

assumptions, etc. are adopted. As for the contract amounts, etc. of61,271

396,711

318,879

163,886

will not be made by the due date̶is limited by the timely preparation

derivative transactions stated in “Derivatives,” the amount itself does notof financing plans and proper fund management. Also, surplus funds ofindicate the market risk involved in derivative transactions.

Total
Fiscal year ended March 31, 2023

Millions of yen

14.2

Matters regarding fair values of financial instruments

Book values recorded in the consolidated balance sheets, fair values and differences between them are as shown below.
Bonds

Millions of yen
2023

2022
Book value

Fair value¥ 46,857¥ 46,856

Long-term debt

DiﬀerenceBook value

Fair value¥ 46,402¥ 46,401Diﬀerence

Total

Due after one
Due within one
year through five
year
years

Due after five
years throughten years

Due after ten
years¥ 30,000¥ 70,000¥ 85,000¥ 75,000

91,331

301,494

262,651

70,466

121,331371,495

347,651

145,466

Assets(1) Investment securities

¥

(0)

¥

(0)

Liabilities(2) Short-term borrowings

91,466

91,466

̶96,65096,650̶(3) Bonds (Current portion is included)

237,000

232,907(4,093)260,000

249,779(10,220)(4) Long-term debt (Current portion is included)703,747

725,827

22,080725,944728,526

2,581

38

38

̶

(39)

(39)

̶

(5) Derivative transactions
Notes:

1. “Cash and deposits,” “Trade receivables,” “Trade payables,” and “Commercial paper” are omitted mainly because they are settled in a short period of time andtheir fair value approximates their book value.
2. Equity securities, etc., without market prices are not included in (1) Investment securities. Amounts for financial instruments recorded in the consolidated balance
sheets for these financial instruments are as follows:
Millions of yen
Classiﬁcation
Non-listed equity securities, etc.
Investments in limited liability investment partnerships and similar investments*

2022

2023

¥ 6,109¥ 4,847

4,366

5,264

* This item is not subject to the disclosure of fair value in accordance with Paragraph 27 of the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, July 4, 2019) for the previous fiscal year and Paragraph 24-16 of the “Implementation Guidance on Accounting Standard for
Fair Value Measurement” (ASBJ Guidance No. 31, June 17, 2021) for the current fiscal year.
3. Shares of nonconsolidated subsidiaries and affiliates are not included in (1) Investment securities.
4. The net receivables/liabilities incurred as a result of derivative transactions are shown in net figures; net liabilities are shown in parenthesis.

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Profile

Financial Section and Corporate Data

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

14.3

Notes to the Consolidated Financial Statements

Matters regarding breakdown by level of fair values of financial instruments

14.3.2

The fair values of financial instruments are classified into the following three levels depending on the observability and significance of input used in the fair value

Financial instruments other than those reported on the consolidated balance sheets at fair value

Fiscal year ended March 31, 2022

measurement:
Level 1 fair value: fair value measured based on observable inputs used in the fair value measurement that are the quoted prices of identical assets or liabilities
in an active market.

When using multiple inputs with a material impact on the measurement of fair value, the Group classifies the fair value into the level with the lowest priority in thefair value measurement among the levels to which each of those inputs belongs.

Fiscal year ended March 31, 2022
Millions of yen
Fair value
Level 2
Level 3

Total

Assets

Held-to-maturity bonds
Government bonds¥ 31,902¥ ̶¥ ̶¥ 31,902

159

̶

̶

159

̶

38

̶

38

for Fair Value Measurement” (ASBJ Guidance No. 31, July 4, 2019) have been applied are not included in the above table. The amount of investment trusts
reported on the consolidated balance sheets is 14,784 million yen.

Level 1Millions of yen
Fair value
Level 2
Level 3¥9

̶91,466

̶

91,466

232,907̶

232,907

Long-term debt

̶725,827

̶

725,827

Fiscal year ended March 31, 2023
Millions of yen
Fair value
Level 2
Level 3

Level 1

Total

AssetsInvestment securities
Government bonds

¥

9

¥

̶

¥

̶

¥

9

Liabilities
Short-term borrowings

̶

96,650̶

96,650

Corporate bonds

̶249,779̶

249,779

Long-term debt

̶728,526

̶

728,526

Listed equity securities and government bonds, etc., are valued using the quoted prices. Because they are traded in active markets, their fair values are classified as
Level 1 fair value.

Investment securities
Available-for-sale securities¥ 30,629¥ ̶¥ ̶¥ 30,629

93

̶

̶

93

̶

(39)

̶

(39)

Derivative transactions
Currency̶Investment securities
Total

AssetsGovernment bonds¥

Note 1: Explanation of the valuation techniques and inputs used in the fair value measurement

Fiscal year ended March 31, 2023

Equity securities, other̶

Held-to-maturity bonds

Note: Fair values for investment trusts to which the transitional treatments stipulated in Paragraph 26 of the “Implementation Guidance on Accounting Standard

Classiﬁcation¥

̶Classiﬁcation

Derivative transactions
Currency

9

Short-term borrowings

Available-for-sale securities
Government bonds¥

Corporate bonds

Investment securities
Equity securities, other

Total

Liabilities

Financial instruments reported on the consolidated balance sheets at fair value

Level 1

Level 1

Investment securities

Level 3 fair value: fair value measured using unobservable inputs.

Classiﬁcation

Classiﬁcation

Millions of yen
Fair value
Level 2
Level 3

AssetsLevel 2 fair value: fair value measured using observable inputs other than Level 1 inputs.

14.3.1

Financial Section andCorporate Data

Note: Investment trusts that have real estate as assets in trust to which the treatments stipulated in Paragraph 24-9 of the “Implementation Guidance on AccountingStandard for Fair Value Measurement” (ASBJ Guidance No. 31, June 17, 2021) have been applied are not included in the above table. The amount ofDerivative transactions
The fair values of derivative transactions are determined using the discounted cash flow method with observable inputs, such as exchange rates, and are classified
as Level 2 fair value.
Short-term borrowings
The fair values of short-term borrowings are determined based on the book value because they are settled in a short period of time and their fair values approximate
their book value, thereby being classified as Level 2 fair value.

investment trusts reported on the consolidated balance sheets is 15,668 million yen.
Corporate bonds
The fair values of the bonds issued by the Company are measured based on the quoted prices and classified as Level 2 fair value.
Long-term debt
For long-term debt, the fair value of debts with fixed interest rates is calculated by discounting the total amount of principal and interest at an interest rate thatwould be charged for similar new loans, and the fair value is classified as Level 2 fair value. Debts with floating rates reflect market interest rates in a short period oftime, and their fair value approximates their book value. Therefore, the fair value is determined based on the relevant book value and classified as Level 2 fair value.
The fair value of debt subject to exceptional treatment of interest rate swaps reflects the fair value of the relevant interest rate swaps.

Note 2: Information on investment trusts with net asset values deemed to be market priceA reconciliation of the beginning to the ending balance of investment trusts that have real estate as assets in trust is as follows:
Fiscal year ended March 31, 2023
Millions of yen
Beginning balance¥ 14,784

Net income (loss) or Other comprehensive income
Recorded as Net income (loss)
Recorded as Other comprehensive income*̶884

Net purchases, sales, and redemptions

̶Amount for investment trusts with net asset values deemed to be market price̶

Amount for investment trusts with net asset values not deemed to be market priceEnding balance̶
15,668* Included in “Valuation difference on available-for-sale securities” under “Other comprehensive income” in the Consolidated Statements of Comprehensive Income,and presented in the amount before tax effect accounting was applied.

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122

Creating Real Value:
Our Story

ProfileFinancial Section and Corporate Data

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

15. Securities

16. Derivatives

15.1

16.1

Available-for-sale securities
Millions of yen

Securities with bookvalue exceedingacquisition cost
Securities with bookvalue not exceedingacquisition cost

Derivative transactions for which hedge accounting has not been applied

There is no relevant item.

2023

2022
Book value

Acquisition costDiﬀerenceBook value

Acquisition costDiﬀerence

16.2

Derivative transactions for which hedge accounting has been applied¥ 30,611¥ 19,375¥ 11,235¥ 29,913¥ 17,407¥ 12,505

16.2.1

Currency

159

158

1

93

93

(0)

Subtotal

30,77019,533

11,23630,006

17,50012,506Equity securities, etc.

16,076

18,293(2,217)

16,385

17,565(1,179)Subtotal

16,076

18,293(2,217)

16,385

17,565(1,179)46,84737,827

9,019

46,39235,065

11,326Classiﬁcation(1) Equity securities, etc.
(2) Bonds

Total

Note: Equity securities, etc., without market prices (10,476 million yen for the previous consolidated fiscal year, 10,112 million yen for the current consolidated fiscal

Fiscal year ended March 31, 2022
Classiﬁcation

Primary methodyear) are not included in the above table.

15.2

Fiscal year ended March 31, 2022
Millions of yen

Equity securities

Amount sold
¥ 9,187

Total amount ofgain on sales¥ 3,702

Total amount ofloss on sales¥ 21

Designation of
forward exchange
contracts, etc.

Fiscal year ended March 31, 2023
Millions of yen
Classiﬁcation
Equity securities

Type
Forward exchange contracts
Sell contract
US dollar
Buy contract
Japanese yen
US dollar
Singapore dollar
Forward exchange contracts
Buy contract
US dollar

Available-for-sale securities soldClassiﬁcation

Amount sold¥ 4,659

Financial Section andCorporate Data

Total amount ofgain on sales¥ 1,942

Total amount ofloss on sales¥ 4

Forward exchange contracts
Sell contract
US dollar
Buy contract
US dollar

Main hedged
items
Trade receivables
Trade payables

Contract
amount¥Trade payables(forecast transactions)

Trade receivables
Trade payables

168

905

̶

58

147

̶
̶
̶

Euro

213

̶

Hong Kong dollar

109̶Pound sterling36

̶Singapore dollar

10̶

Swiss franc

7

̶

4,352

Japanese yen
Buy contract
Japanese yen
US dollar
Singapore dollar

Main hedged
items
Trade receivables

Trade payables

Trade payables(forecast transactions)Contract
amount

¥

1
(18)
(1)
(0)

244

Type
Forward exchange contracts
Sell contract
US dollar

¥

̶
̶
̶

1,172

Forward exchange contracts
Buy contract
Euro

Designation of
forward exchange
contracts, etc.

̶

Fair value

1,289
46
1

Fiscal year ended March 31, 2023

Primary method¥

Thai baht

Total

Classiﬁcation

Millions of yen
Portion of contract
amount exceeding
one year

318(Note)

̶

Millions of yen
Portion of contract
amount exceeding
one year¥̶38

Fair value

¥

(2)

12

̶

0

1,200
22
6

̶
̶
̶

32
(0)
0

4,426

̶

42

US dollar

3,191

̶

(76)

Swiss franc

481

̶

(7)

Canadian dollar

393

̶

(19)

Australian dollar

263

̶

(10)

Pound sterling

128

̶

1

Singapore dollar

66

̶

(0)

New Zealand dollar

52

̶

(0)

Chinese yuan

22

̶

0

59

̶

Forward exchange contracts
Sell contract
US dollar
Buy contract
US dollar

Trade receivables
Trade payables

812

̶

Euro

163

̶

Thai baht

102

̶Hong Kong dollar

98

̶
̶

Pound sterling

24

Swiss franc21

̶Singapore dollar

15̶

New Zealand dollar

10

̶

3
11,897̶̶Australian dollar

Total(Note)(39)

Note: Items subject to the allocation method for forward exchange contracts (listed as “Designation of forward exchange contracts, etc.”) are accounted for synthetically withtrade receivables and trade payables that are subject to hedging. The fair value of the relevant trade receivables and trade payables, including those of the above items,
approximates their book value because the trade receivables and trade payables are settled in a short period of time. For this reason, the fair value of the above items isomitted.

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Profile

Financial Section and Corporate Data

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

16.2.2

Notes to the Consolidated Financial Statements

Interest rates

17.2.417.2.7

Breakdown of retirement benefit expenses

I.

Fiscal year ended March 31, 2022
Millions of yen

Millions of yen
Classiﬁcation
Exceptional
accounting forinterest rate
swaps

Contract
amountMain hedged
items

Type
Interest rate swap contracts:
Pay ﬁxed rate/
Receive ﬂoating rateLong-term debt

Portion of contract
amount exceeding
one year

Fair value¥ 124,700¥ 108,200¥ (4,932)

124,700

108,200(4,932)

Total
Fiscal year ended March 31, 2023

Classiﬁcation
Exceptional
accounting forinterest rate
swaps

Main hedged
itemsInterest rate swap contracts:
Pay ﬁxed rate/
Receive ﬂoating rateLong-term debt

Service cost

¥ 8,109¥ 7,951

Interest cost

261

264

(1,294)(1,225)

Amortization of actuarial diﬀerences

(778)

(748)

Amortization of past service cost

(139)

(138)

86

8

6,245

6,111

Retirement beneﬁt expenses

Contract
amountPortion of contract
amount exceeding
one year

Fair value¥ 108,200¥ 87,200¥ (3,076)

108,200

87,200(3,076)

Total

2023

Other

Items relating to plan assets

Breakdown of major plan assets
Ratios of the major types of assets to total plan assets are as follows:

2022

Expected return on plan assets

Millions of yen

TypeFinancial Section andCorporate Data

Notes:

2022

2023

Bonds

36%

36%

Equity securities

34

34

Cash and deposits

22General accounts of life insurance

26

26

Other

2

2

Total

100

100

Note: The retirement benefits trust established for the Company’s pension
plan constituted 8% of total plan assets in the previous fiscal year and1. Amounts in the table above include the retirement benefit expenses of

9% of total plan assets in the current fiscal year.

consolidated subsidiaries using simplified methods.
2. In addition to the retirement benefit expenses shown above, extra
retirement payments have been paid: 51 million yen in the fiscal year
ended March 31, 2022, and 12 million yen in the fiscal year ended March
31, 2023, were recorded as extraordinary loss.

II.

Method of determining the long-term expected rate of return on plan
assetsCurrent and target asset allocations and historical and expected returns
on various categories of plan assets have been considered in determining

17.2.5

17. Retirement Benefits
17.1

Breakdown of items related to remeasurements of defined benefit plans (prior
to the deduction of the tax effect) is as follows:

Overview of retirement benefit plans

The Company and some consolidated subsidiaries provide defined benefit plans (defined benefit pension plans and lump-sum payment plans) or defined
In addition, some consolidated subsidiaries subscribe to employee pension fund plans in multi-employer plans. For them, the Company has used the sameaccounting treatment as it used for defined contribution plans when the amount of plan assets corresponding to the contributions by the Company cannot be
rationally calculated.

17.2

Defined benefit plans

17.2.1

Table of movement in retirement benefit obligations

17.2.3

Table of reconciliation between the balance of retirement benefit
obligations and of plan assets, and the liabilities for retirement
benefit and assets for retirement benefit recorded in theMillions of yen

consolidated balance sheets, as of the end of the fiscal year

2022

2023

¥ 132,057¥ 130,623

Service cost

8,109

7,951

Interest cost

261

264

Actuarial loss (gain)

(412)

(219)

(9,625)(10,119)

Retirement beneﬁts paid
Other
Balance at the end of the year

232

17

130,623

128,517

Note: Amounts in the table above include the retirement benefit obligationsof consolidated subsidiaries using simplified methods.
17.2.2

Table of movement in plan assets

2022

2023

¥ 89,352¥ 86,334
1,225

Expected return on plan assets

1,294(2,176)(381)

Contribution paid by the employer

3,005

2,922

Retirement beneﬁts paid

(5,211)(4,908)

Balance at the end of the year

¥ (138)Actuarial diﬀerences(2,542)

(896)

Total

(2,682)(1,035)17.2.62023¥ 68,282¥ 67,020(86,334)(85,192)(18,051)(18,171)

Unfunded retirement beneﬁt obligations

62,341

61,497

Total net deﬁned beneﬁt liability and asset

44,28943,325Net deﬁned beneﬁt liability

62,79561,916

Net deﬁned beneﬁt asset(18,505)(18,590)

Total net deﬁned beneﬁt liability and asset

44,28943,325Funded retirement beneﬁt obligations
Plan assets

2022

2023

Discount rate

Mainly 0.0%

Mainly 0.0%

Long-term expected rate of return onplan assets

Mainly 2.0%

Mainly 2.0%

Expected rate of salary increase

Mainly 2.1%

Mainly 2.1%

Cumulative adjustments related to retirement benefit plans

Breakdown of items related to the cumulative adjustments for retirement
benefit plans (prior to the deduction of the tax effect) is as follows:

17.3

Millions of yen
2022

2023

¥ (623)¥ (485)

Unrecognized actuarial diﬀerences(3,395)(2,498)

Total(4,019)(2,983)

Unrecognized past service cost

Defined contribution plans

The amount of the required contribution for the consolidated subsidiaries’
defined contribution plans (including employee pension fund plans in
multi-employer plans to which the same accounting methods are applied
as those for defined contribution plans) was 39 million yen in the fiscal year
ended March 31, 2022 and 73 million yen in the fiscal year ended March 31,2023.

Note: The above relates to consolidated subsidiaries. In addition to theabove items, the remeasurements of defined benefit plans include
unrecognized items (the amount corresponding to equity) of equitymethod affiliates.

and plan assets of consolidated subsidiaries using simplified methods.

Actuarial loss (gain)

Other

2023

¥ (139)Items relating to actuarial assumptions

Major actuarial assumptions

Note: Amounts in the table above include the retirement benefit obligations
Millions of yen

Balance at the beginning of the year2022
Past service cost

Millions of yen
2022

17.2.8Millions of yen

contribution plans. Hankyu Corporation has set up a retirement benefit trust.

Balance at the beginning of the year

the long-term expected rate of return on plan assets.

Remeasurements of defined benefit plans69̶86,33485,192

Note: Amounts in the table above include the plan assets of consolidated
subsidiaries using simplified methods.

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Profile

Financial Section and Corporate Data

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

18.2

18. Deferred Tax
18.1

Financial Section andCorporate Data

statements of income

Significant components of the Company’s deferred tax assets and liabilities

2022

2023

¥ 55,122¥ 55,122

Tax loss carryforwards (Note 1)

32,46821,704

Net deﬁned beneﬁt liability

14,49314,098Loss on revaluation of real estate for sale

8,823

8,870

Loss on impairment of ﬁxed assets

7,643

7,626

Loss on adjustment of gain or loss on transfer

6,589

6,440

Unrealized gain or loss on assets

5,568

6,032

Allowance for loss on withdrawal of property and equipment

2,345

2,345

Provision for bonuses

1,635

2,051

Enterprise taxes and business oﬃce taxes

1,074

1,361

Subtotal of deferred tax assets

2023
−%

Elimination of dividends received fromconsolidated subsidiary companies, etc.

12.8

−

Valuation allowance

8.1−

Amortization of goodwill

1.9−

Per capita portion of inhabitants tax

1.0−(Adjustment)

Deferred tax assets:

Other

2022
30.6%

Statutory tax rate

Millions of yen

Gain on donations by related companies for tax purposes

Reconciliation of significant differences between the statutory tax rate and the effective tax rate reflected in the accompanying consolidated

10,495

11,844

146,259

137,499

Nondeductible expenses
Nontaxable income
Proﬁt or loss from investments in equitymethod aﬃliates
Diﬀerence in tax rates from those of Parent
Company
Other
Eﬀective tax rate

0.7−

(13.0)

−

(5.7)

−

(0.1)

−

(1.9)

−

34.4

−

Note: Note is omitted because the difference between the statutory tax rate and effective tax rate was less than 5/100 of the statutory tax rate.

Valuation allowance for tax loss carryforwards (Note 1)(8,901)(7,835)

Valuation allowance for the total of future deductible temporary
diﬀerences

18.3(77,826)(78,614)

Beginning from the fiscal year ended March 31, 2023, the Company and some of its domestic consolidated subsidiaries have adopted the Group Tax Sharing

Subtotal of valuation allowance(86,727)(86,450)

Less amounts oﬀset against deferred tax liabilities(52,312)(43,777)

7,218

7,272

Total deferred tax assets

Accounting for income taxes and local income taxes or tax effect accounting for these taxes

System. Accounting treatment and disclosure of income taxes and local income taxes or tax effect accounting related to these taxes are in accordance with the“Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (PITF No. 42, August 12, 2021).

Deferred tax liabilities:
Gain on reversal of diﬀerence from land revaluation (Note 2)(131,388)(131,388)

Revaluation of assets on consolidation(77,630)(73,504)

Net unrealized holding gains on securities(12,520)(12,488)

Reserve for reduction of noncurrent assets(3,339)(3,295)Gain on valuation of properties of business reorganization(1,702)(1,683)Other(2,248)(3,248)(228,829)(225,608)

Subtotal of deferred tax liabilities

52,312

43,777

Total deferred tax liabilities

Less amounts oﬀset against deferred tax assets(176,516)(181,831)

Net deferred tax liabilities(169,297)(174,559)

19. Asset Retirement Obligations
Omitted as the significance was negligible.

20. Rental Property

Notes:
1. Tax loss carryforwards, and the related valuation allowance and net deferred tax assets by expiration periods

Notes:and commercial facilities for lease in Kita Ward, Osaka and other areas

1. Amounts recorded on the consolidated balance sheet represent thein Japan and overseas (primarily in Indonesia). Rental profits and losses

acquisition cost less the accumulated depreciation and accumulated

related to the rental property in the fiscal year ended March 31, 2022 wereFiscal year ended March 31, 2022
Millions of yen
Within one year

Over one year
to two years

Over two years
to three years

Over three years
to four years

Over four years
to ﬁve years

Over ﬁve years

Total¥ 2,201

¥ 123

¥ 41

¥ 190

¥ 23

¥ 29,888¥ 32,468

Valuation allowance

(991)

(115)

(7)

(189)

(15)

(7,583)(8,901)

Deferred tax assets

1,210

8

34

0

8

22,30423,566*²

Tax loss carryforwards*1

Some consolidated subsidiaries own rental property, such as office buildings*1 Tax loss carryforwards were calculated by multiplying the statutory tax rate.

2. As for the increases/decreases during the fiscal year ended March

operations and major rental expenses are recorded in costs of revenues

31, 2022, the main increase was the completion of buildings underfrom operations). Rental profits and losses related to the rental property

construction at 184,704 million yen, and the main decrease wasin the fiscal year ended March 31, 2023 were 30,456 million yen (major

depreciation of 15,602 million yen. As for the increases/decreases during

rental revenues are recorded in revenues from operations and major rental

the fiscal year ended March 31, 2023, the main increase was the change in

expenses are recorded in costs of revenues from operations). Impairment

scope of consolidation at 58,764 million yen, and the main decreases were

losses were 12,291 million yen (recorded in extraordinary loss).

depreciation of 17,520 million yen and impairment losses of 12,291 million

Book value recorded in the consolidated balance sheets, the increase/*2 Of the total tax loss carryforwards of 32,468 million yen (multiplied by the statutory effective tax rate), deferred tax assets of 23,566 million yen were recognized.
The deferred tax assets were determined to be recoverable based on the future taxable income expected as set forth in Note 3, “Significant Accounting Estimates.”

impairment losses.

27,072 million yen (major rental revenues are recorded in revenues fromdecrease during the fiscal year and the market value for rental property are as
follows:

Fiscal year ended March 31, 2023

to outside real estate appraisers based on Japanese Real Estate Appraisal
Millions of yen
2022

Millions of yenyen.
3. Fair value as of the end of the fiscal year is the appraisal value according

2023

Standards in the case of key properties and the fair value based on indicatorssuch as the assessed value of noncurrent assets and the road tax rating forother properties.

Within one year

Over one year
to two years

Over two years
to three years

Over three years
to four years

Over four years
to ﬁve years

Over ﬁve years

Total

¥ 123

¥ 41

¥ 190

¥ 16

¥ 55

¥ 21,277¥ 21,704¥ 653,108¥ 849,119

Valuation allowance

(114)

(7)

(189)

(10)

(55)

(7,459)(7,835)

Increase/Decrease (Note 2)

196,011

29,371properties under development recorded in the consolidated balance sheets

Deferred tax assets

9

34

0

6

̶

13,81813,869*²

Balance at the end of the year

849,119

878,490

for the fiscal year ended March 31, 2022 and 2023 were 32,777 million yen

1,379,880

1,410,856

Tax loss carryforwards*1*1 Tax loss carryforwards were calculated by multiplying the statutory tax rate.

Book value (Note 1):
Balance at beginningof the year

Fair value at the end of the year (Note 3)

4. Properties under development were not included in the above tablebecause it was difficult to determine the market value. Furthermore,

and 47,140 million yen, respectively.

*2 Of the total tax loss carryforwards of 21,704 million yen (multiplied by the statutory effective tax rate), deferred tax assets of 13,869 million yen were recognized.
The deferred tax assets were determined to be recoverable based on the future taxable income expected as set forth in Note 3, “Significant Accounting Estimates.”

2. The Company reversed “Surplus from land revaluation” when, as a result of a (physical) absorption-type corporate split on April 1, 2005, it handed over all of its
land to Hankyu Corporation (which changed its name from Hankyu Corporation Spin-Off Preparation Inc. to Hankyu Corporation on the same day). As a result,“Deferred tax liabilities related to land revaluation” has been recorded as “Deferred tax liabilities” starting from the fiscal year ended March 31, 2006.

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Profile

Financial Section and Corporate Data

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

21. Revenue Recognition
21.1

21.3

Information on disaggregated revenue from contracts with customers

segments and are components of the Group for which separate financial statements are available and which are evaluated regularly by the Board of Directors indetermining the allocation of management resources and in assessing business performance.

Information on the relationship between fulfillment of performance obligation based on contracts with customers and cash flows arisingfrom such contracts, and the amount and timing of revenue expected to be generated from contracts with customers existing at the end

Revenue from contracts with customers is disaggregated into segments based on the contract with the customer. The Group’s segments are made up of businessof the current consolidated fiscal year and to be recognized in the next consolidated fiscal year and beyond
21.3.1

Balances of contract assets and contract liabilities
Millions of yen

The relationship between disaggregated revenue and operating revenue by segment is as follows:
Millions of yen
2022

2023

Urban Transportation¥ 161,623¥ 185,581

Railway operations

118,539

Automobile
Retailing
Urban Transportation - Other businesses

2022

2023

Receivables from contracts with customers (balance at beginning of year)¥ 65,826¥ 104,967

Receivables from contracts with customers (balance at end of year)

104,967

108,741

Contract assets (balance at beginning of year)

6,459

6,586

134,472

Contract assets (balance at end of year)

6,586

10,53934,09840,159Contract liabilities (balance at beginning of year)

33,276

41,573

10,921

11,969Contract liabilities (balance at end of year)

41,57363,754

8,696

8,913

(10,633)(9,933)

Real Estate

246,584

282,049

Leasing

112,468

126,227

Real estate sales and other businesses

135,484

140,692

Hotel

25,554

44,175Adjustment

Contract assets are mainly unclaimed rights to consideration recognized based in accordance with the degree of progress made in fulfilling performance obligations related
to construction contracts in the Construction Industry, and are transferred to receivables from contracts with customers at the time of acceptance inspection by customers.
Contract liabilities are mainly advances received from customers in Urban Transportation, Travel, and other businesses, and are reversed upon recognition of revenue.
The balance of contract liabilities as of the beginning of the previous fiscal year and the current fiscal year is generally recognized as revenue for the previous fiscal year andthe current fiscal year, respectively, and the amount carried forward to the next fiscal year onward is immaterial.

Adjustment(26,922)(29,046)

21.3.2Entertainment

62,86472,289Because the Group does not have significant transactions in which the duration period is initially expected to exceed one year, disclosure of remaining performanceSports29,43238,363

obligations is omitted.

Stage33,36433,858Adjustment

Transaction price allocated to the remaining performance obligations

67

66

59,18160,355

Travel

60,419191,400

International transportation

143,296

163,269

22. Segment Information

Other businesses

51,66655,649Adjustment(39,417)(42,295)

22.1

Segment information

746,217968,300

22.1.1

Summary of reportable segments

Information and Communication Technology

Total

Notes: 1. In addition to “Revenue from contracts with customers,” the above figures include “Revenue from other sources” (77,694 million yen for the fiscal year
ended March 31, 2022, and 86,889 million yen for the fiscal year ended March 31, 2023). “Revenue from other sources” mainly consists of rental incomein the real estate leasing business.
2. Beginning from the fiscal year ended March 31, 2023, the Company has changed its reportable segments from the previous seven segments of “Urban
Transportation,” “Real Estate,” “Entertainment,” “Information and Communication Technology,” “Travel,” “International Transportation,” and “Hotels” to

The Group’s reportable segments are components of the Group for which separate financial information is available, and which are regularly reviewed by the Board of
Directors to determine the allocation of management resources and evaluate business results.
The Group, centering on five core companies of Hankyu Corporation, Hanshin Electric Railway Co., Ltd., Hankyu Hanshin Properties Corp., Hankyu Travel International
Co., Ltd., and Hankyu Hanshin Express Co., Ltd., under the leadership of the Company in charge of management of the Group, is conducting business centered aroundthe six business areas of urban transportation, real estate, entertainment, information and communication technology, travel, and international transportation.
The nature of the business in each reportable segment is as follows:
Urban Transportation: Railway operations, automobile and retailing businesses

the six segments of “Urban Transportation,” “Real Estate,” “Entertainment,” “Information and Communication Technology,” “Travel” and “International

Real Estate: Rental real estate, real estate sales and other businesses, and hotel businessTransportation.” Information on disaggregated revenue from contracts with customers from the previous fiscal year has been prepared based on segments

Entertainment: Sports-related businesses and stage events

after the change.

21.2

Financial Section andCorporate Data

Information and Communication Technology: Information and communication technology businessTravel: Travel services

Basic information for understanding revenue from contracts with customers

International Transportation: International cargo services

Basic information for understanding revenue from contracts with customers is as stated in Note 2.4.5, “Standards for recognition of significant revenues andexpenses” under Note 2.4, “Accounting policies,” outlined in Note 2, “Basis of Preparation of Consolidated Financial Statements.”
22.1.2

Method used to calculate revenues from operations, income (or loss), assets and other items for each reportable segment

The accounting treatment for each reportable business segment is based on the methods described in Note 2, “Basis of Preparation of Consolidated Financial Statements,”
including internal transactions (lease transactions for lands and buildings, etc.) that are calculated through management accounting at companies with businesses covering
multiple segments.
Income (or loss) for each reportable segment refers to a figure based on operating income (or loss).
Intersegment revenues from operations and transfers are mainly based on the price similar to that for regular transactions.

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Creating Real Value:
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ProfileFinancial Section and Corporate Data

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Notes to the Consolidated Financial Statements

22.1.3

Notes to the Consolidated Financial Statements

Information regarding totals for revenues from operations, income (loss), assets and other items by reportable segment

22.2

Fiscal year ended March 31, 2022

Real
Estate¥ 157,128¥ 238,070

Reportable segments
Information andEntertainment Communication
Technology

TravelInternational
Transportation

Other(Note 1)

Adjustment(Note 2)

Amounts recordedin the consolidated
financial statements(Note 3)

¥ 61,485¥ 48,638

22.2.1

Information about product and service

Information about product and service categories is the same as that described in Note 22.1.3, “Information regarding totals for revenues from operations, income(loss), assets and other items by reportable segment.”

Revenues from operations:
I. Customers

Related information

Fiscal years ended March 31, 2022 and 2023

Millions of yen
Urban
Transportation

Financial Section andCorporate Data

Creating Real Value:
The Foundations¥ 60,102¥ 143,229¥ 37,153¥

408¥ 746,217
21.2.2

Information about region

II. Intersegment

4,494

8,513

1,378

10,542317

67

14,512(39,826)

̶

Total

161,623

246,584

62,864

59,18160,419143,296

51,666(39,417)746,217I.

Since over 90% of revenues from operations in the consolidated statements of income are revenues from external customers in Japan, a breakdown by region is

Segment income (loss)
Segment assets

5,629

19,425

9,263

5,867

(5,748)

8,019

2,385

(5,628)39,212

833,681

1,449,581

112,522

68,33846,154

69,18842,004

101,369

2,722,841

27,222

21,816

3,487

4,775

912

1,592

396

(1,095)

59,107

Revenues from operations

omitted.

Other items:
Depreciation andamortization
Increase in property andequipment and intangible assets

30,274

77,521

5,102

5,104

738

2,474

364

(1,276)

120,302

Notes:
1. The “Other” segment refers to a business segment not included in reportable segments and includes the construction business, etc.
2. The main item in the adjusted amount of the segment income or loss for the fiscal year was the amortization of goodwill of (2,238) million yen (amortization of
goodwill having originated mainly from the management integration with Hanshin Electric Railway Co., Ltd. in fiscal 2007).
In addition to the balance of unamortized goodwill of 9,511 million yen (goodwill having originated mainly from the management integration with Hanshin
Electric Railway Co., Ltd. in fiscal 2007), the adjusted amount for segment assets includes unallocated assets such as surplus working capital (cash and deposits),
long-term investment funds (investment securities), and land at the Company, Hankyu Corporation and Hanshin Electric Railway Co., Ltd., as well as intersegment
eliminations.
3. Segment profit and loss is reconciled to operating income in the consolidated statements of income.
Fiscal year ended March 31, 2023
Reportable segments
Real
Estate¥ 180,663¥ 272,947

Entertainment

Information andCommunication
Technology¥ 70,766¥ 49,092

region is omitted.
22.2.3

Information about major customers

No single external customer accounts for more than 10% of the revenues from operations reported in the consolidated statements of income.

22.3

Information regarding impairment loss on noncurrent assets for each reportable segment

Fiscal year ended March 31, 2022
Omitted as the significance was negligible.

Other(Note 1)

TravelInternational
Transportation¥ 191,023¥ 163,204¥ 40,066

Adjustment(Note 2)¥

535

Millions of yen

Amounts recordedin the consolidated
financial statements(Note 3)

Revenues from operations:
I. Customers

Property and equipment

Since over 90% of the total value of property and equipment in the consolidated balance sheets relates to property and equipment in Japan, a breakdown by

Fiscal year ended March 31, 2023

Millions of yen

Urban
TransportationII.

¥ 968,300

Reportable segments
Urban
Transportation
Impairment losses

29

Real
Estate12,626

II. Intersegment

4,918

9,102

1,522

11,262376

65

15,583(42,831)̶

Total

185,581

282,049

72,28960,355

191,400

163,269

55,649(42,295)

968,300

22.4

Segment income (loss)

22,43527,851

12,622

5,917

15,257

8,381

2,752

(5,866)89,350Information is omitted as the significance was negligible.

Segment assets

861,185

1,537,946

113,100

72,19688,24572,01942,742

77,974

2,865,410

26,23524,867

3,719

5,115

943

1,767

427

(1,038)62,03727,39624,549

2,400

5,629

716

2,401

422

(477)

63,039Other items:
Depreciation andamortization
Increase in property andequipment and intangible assets

22.5Entertainment

Information andCommunication
Technology̶9International
Transportation

Travel
7

̶

Other
̶

Adjustment

Amounts recordedin the consolidated
financialstatements̶

12,672

Information regarding amortization of goodwill and the balance of unamortized goodwill by reportable segment

Information regarding gain on bargain purchase by reportable segment

Information is omitted as the significance was negligible.

Notes:
1. The “Other” segment refers to a business segment not included in reportable segments and includes the construction business, etc.
2. The main item in the adjusted amount of the segment income or loss for the fiscal year was the amortization of goodwill of (2,238) million yen (amortization of
goodwill having originated mainly from the management integration with Hanshin Electric Railway Co., Ltd. in fiscal 2007).
In addition to the balance of unamortized goodwill of 7,273 million yen (goodwill having originated mainly from the management integration with Hanshin
Electric Railway Co., Ltd. in fiscal 2007), the adjusted amount for segment assets includes unallocated assets such as surplus working capital (cash and deposits),
long-term investment funds (investment securities), and land at the Company, Hankyu Corporation and Hanshin Electric Railway Co., Ltd., as well as intersegment
eliminations.
3. Segment profit and loss is reconciled to operating income in the consolidated statements of income.
22.1.4

Matters regarding changes in reportable segments, etc.

Beginning from the fiscal year ended March 31, 2023, the Company’s reportable segments have been changed from the previous seven segments of “Urban
Transportation,” “Real Estate,” “Entertainment,” “Information and Communication Technology,” “Travel,” “International Transportation,” and “Hotels” to the six
segments of “Urban Transportation,” “Real Estate,” “Entertainment,” “Information and Communication Technology,” “Travel” and “International Transportation.”
This change was made with the hotel business positioned as a category in real estate business after integrating the hotel business into the real estate business,based on the partial revision of the core business structure undertaken since fiscal 2022.
Segment information on the previous fiscal year has been prepared based on segments after the change.

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Profile

Financial Section and Corporate Data

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Notes to the Consolidated Financial Statements

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Notes to the Consolidated Financial Statements

23.2

23. Related-party Transactions

Notes about parent company and major affiliated companies

23.2.1 Parent company information

23.1

Related-party transactions

23.1.1

Transactions between the company submitting the consolidated financial statements and related parties

There is no relevant item.
23.2.2 Condensed consolidated financial information of important affiliates

No items

In the consolidated fiscal year ended March 31, 2023, the important affiliated company is Toho Co., Ltd. and the condensed consolidated financial information
23.1.2is as follows:

Transactions between consolidated subsidiaries of the company submitting the consolidated financial statements and related parties

Millions of yen
I.

Toho Co., Ltd.

Nonconsolidated subsidiaries or affiliates of the company that submitted the financial statements

Fiscal year ended March 31, 2022
Type
Subsidiary ofAffiliate

Name ofCompany, etc.

Amountof capital(Millions of yen)

Address

Hankyu Hanshin
Kita-ku, Osaka
Department
City
Stores, Inc.

Business
Department
store business

¥ 200

Type

Amountof capital(Millions of yen)

Address

Hankyu Hanshin
Subsidiary of
Kita-ku, Osaka
Department
Affiliate
City
Stores, Inc.

¥ 200

Business
Department
store business

Consolidated fiscal year ended
March 31, 2023

Voting Relationship withinterest
related party

Details oftransaction

Transaction
amounts(Millions of yen)

Item

Balance as ofMarch 31, 2022
(Millions of yen)

Total current assets¥ ̶¥ 171,104

Total noncurrent assets

̶

280,929

Lease of realestate,Directors holding
concurrent posts

Acceptanceofdeposits

̶

Leaseholddeposit¥30,598

Total current liabilities̶

111,293

Total noncurrent liabilities̶

41,645

Total net assets

̶

299,095

Voting Relationship withinterest
related party

Details oftransaction

Transaction
amounts(Millions of yen)

Item

Balance as ofMarch 31, 2023
(Millions of yen)

Revenues from operations

̶

122,924

Lease of realestate,Directors holding
concurrent posts

Acceptanceofdeposits

Income before income taxes̶38,156

Net income̶

28,122

None

Fiscal year ended March 31, 2023
Name ofCompany, etc.

Consolidated fiscal year ended
March 31, 2022 (Note)

None

Leaseholddeposit̶¥30,567

Note: From the fiscal year ended March 31, 2023, Toho Co., Ltd. has been classified as an important affiliated company in view of its increased materiality.

Note: Terms and conditions of transactions and policies for determining terms and conditions of transactions
Terms and conditions for leasehold deposits are determined in the same way as general transactions.
II.

Directors and principal shareholders (only individual shareholders) of the company submitting the consolidated financial statements

Fiscal year ended March 31, 2022
Type

Name ofrelated party

Address

Amountof capital(Millions of yen)

Business

Votinginterest

Relationship withrelated party

Details oftransaction

Transaction
amounts(Millions of yen)

Auditorof Major
Subsidiary

Haruo
Sakaguchi̶¥ ̶

Auditorof Hankyu
Corporation

Directly
0.0%

Lease of realestateLease of realestate¥ 53

Leaseholddeposit̶̶

Close relativeof Auditor of
Hanshin Electric
Railway Co., Ltd.

None

Sales ofcondominiums

Sales ofcondominiums

49

̶

Item

Close relative
Close relativeof Majorof Toshiro
Subsidiary’s
Kuroki
Auditor

Item

Balance as ofMarch 31, 2022
(Millions of yen)
¥ 40

̶

Fiscal year ended March 31, 2023
Type

Name ofrelated party

Address

Amountof capital(Millions of yen)

Business

Votinginterest

Relationship withrelated party

Details oftransaction

Transaction
amounts(Millions of yen)

Auditorof Major
Subsidiary

Haruo
Sakaguchi̶¥ ̶

Auditorof Hankyu
Corporation

Directly
0.0%

Lease of realestateLease of realestate¥ 53

Leaseholddeposit

Auditorof Major
Subsidiary

Junzo Ishii̶̶

Auditor of
Hanshin Electric
Railway Co., Ltd.

Directly
0.0%

Sales ofcondominiums

̶

None

Sales ofcondominiums

59̶

Close relativeof Auditor of
Hanshin Electric
Railway Co., Ltd.

Close relativeof Major
Close relative
Subsidiary’s of Junzo Ishii
Auditor̶

Balance as ofMarch 31, 2023
(Millions of yen)
¥ 40̶Note: Terms and conditions of transactions and policies for determining terms and conditions of transactions
Terms and conditions for leases are determined by referencing to similar transaction cases in the neighboring area.
Terms and conditions for sales of condominiums are rationally determined after negotiations, taking into consideration the actual market value. Mr. Toshiro
Kuroki retired from the position of Audit & Supervisory Board Member of Hanshin Electric Railway Co., Ltd. on September 28, 2021, and the above information
pertains to his term of office. In addition, Mr. Junzo Ishii and one of his close relatives have signed a joint purchase agreement in their names.

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Creating Real Value:
Our Story

ProfileFinancial Section and Corporate Data

Creating Real Value:
The Processes

Financial Section andCorporate Data

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

24. Per Share Information

26. Consolidated Supplementary Statements
26.1

Net assets per share, net income per share, diluted net income per share, and their respective calculation bases are as shown below.
(1) Net assets per share (Yen)

2022

2023

¥ 3,612.17¥ 3,764.17

Millions of yen(Basis for the calculation)
Total net assets (Millions of yen)

¥ 915,363¥ 980,940

Amount to be deducted from total net assets (Millions of yen)¥¥

(Of the amount, non-controlling interests) (Millions of yen)

¥ [45,014]¥ [74,137]

Net assets at the end of the ﬁscal year related to common shares (Millions of yen)

45,014

Corporate bond statements

74,137

Balance asof March 31,
2023

Company

Name

Issue date

Balance asof April 1,
2022

Hankyu Hanshin Holdings, Inc.

Series 41 unsecured corporate bonds

Sep 22, 2010

¥ 7,000¥

Hankyu Hanshin Holdings, Inc.

Series 46 unsecured corporate bonds

Oct 25, 2013

Interest rate

Security

Redemptiondate̶

1.720％None

Sep 22, 2022

10,00010,000(10,000)

0.819

None

Oct 25, 2023

¥ 870,348¥ 906,802

Hankyu Hanshin Holdings, Inc.

Series 47 unsecured corporate bonds

Jul 18, 2014

10,00010,000

1.202

None

Jul 18, 2029

Common shares issued (Thousands of shares)

254,281254,281

Hankyu Hanshin Holdings, Inc.

Series 49 unsecured corporate bonds

Dec 15, 2016

10,00010,000

0.817

None

Dec 15, 2036

Treasury stock shares (Thousands of shares)

12,17012,158

Hankyu Hanshin Holdings, Inc.

Series 50 unsecured corporate bonds

Sep 13, 2018

10,00010,000

0.345

None

Sep 13, 2028

Common shares held by consolidated subsidiaries and equity-method aﬃliates (Thousands of shares)

1,161

1,219

Hankyu Hanshin Holdings, Inc.

Series 51 unsecured corporate bonds

Sep 13, 2018

10,00010,000

0.789

None

Sep 13, 2038

240,949

240,903

Hankyu Hanshin Holdings, Inc.

Series 52 unsecured corporate bonds

Nov 21, 201910,00010,000

0.215

None

Nov 21, 2029

Hankyu Hanshin Holdings, Inc.

Series 53 unsecured corporate bonds

Nov 21, 201910,00010,000

0.878

None

Nov 19, 2049

Hankyu Hanshin Holdings, Inc.

Series 54 unsecured corporate bonds

Feb 27, 2020

10,00010,000

0.486

None

Feb 27, 2040

0.001

None

Jul 14, 2023
Jul 17, 2025

Common shares used to calculate net assets per share (Thousands of shares)(2) Net income per share (Yen)

¥

88.89

¥

194.88(Basis for the calculation)
Net income attributable to owners of the parent (Millions of yen)¥Amount not belonging to common stockholders (Millions of yen)

21,418¥¥ ̶

Net income attributable to owners of the parent related to common share (Millions of yen)¥

Average number of common shares during term (Thousands of shares)(3) Diluted net income per share (Yen)21,418¥ ̶¥

240,951¥88.83

46,952¥

Jul 17, 2020

20,00046,952

Hankyu Hanshin Holdings, Inc.

Series 56 unsecured corporate bonds

Jul 17, 2020

10,00010,000

0.120

None

Hankyu Hanshin Holdings, Inc.

Series 57 unsecured corporate bonds

Jul 17, 2020

20,00020,000

0.280

None

Jul 17, 2030

194.78

Hankyu Hanshin Holdings, Inc.

Series 58 unsecured corporate bonds

Feb 26, 2021

20,00020,000

0.090

None

Feb 26, 2026

Hankyu Hanshin Holdings, Inc.

Series 59 unsecured corporate bonds

Feb 26, 2021

10,00010,000

0.270

None

Feb 26, 2031

Hankyu Hanshin Holdings, Inc.

Series 60 unsecured corporate bonds

Feb 26, 2021

20,00020,000

0.680

None

Feb 26, 2041

Hankyu Hanshin Holdings, Inc.

Series 61 unsecured corporate bonds

Sep 9, 2021

15,00015,000

0.001

None

Sep 9, 2024

Hankyu Hanshin Holdings, Inc.

Series 62 unsecured corporate bonds

Sep 9, 2021

10,00010,000

0.240

None

Sep 9, 2031

Adjustment of net income attributable to owners of the parent (Millions of yen)

¥ (14)¥ (24)(Of this, equity in income of aﬃliates) (Millions of yen)

¥ [(14)]¥ [(24)]

Outline of dilutive shares not included in the calculation of diluted net income per share because they do not havedilutive eﬀect

Series 55 unsecured corporate bonds

240,927(Basis for calculation)

Increase in number of common shares (Thousands of shares)

Hankyu Hanshin Holdings, Inc.

20,000(20,000)

̶

̶

̶

̶

Notes:

Hankyu Hanshin Holdings, Inc.

Series 63 unsecured corporate bonds

Sep 9, 2021

15,00015,000

0.580

None

Sep 9, 2041

Hankyu Hanshin Holdings, Inc.

Series 64 unsecured corporate bonds

Dec 8, 2021

10,00010,000

0.100

None

Dec 8, 2026

In calculating net assets per share, the number of shares in the Company owned by the officer’s compensation BIP trust is included in that of treasury stock

Hankyu Hanshin Holdings, Inc.

Series 65 unsecured corporate bonds

Dec 15, 2022

̶

15,000

0.489

None

Dec 15, 2027

shares to be excluded from the total number of outstanding shares at the end of the fiscal year. Furthermore, in calculating the net income (loss) per share andHankyu Hanshin Holdings, Inc.

Series 66 unsecured corporate bonds

Dec 15, 2022

̶

15,000

0.729

None

Dec 15, 2032

Total

̶

̶

237,000

260,000(30,000)̶̶̶

diluted net income per share for the current fiscal year, the number of the shares in the Company owned by the officer’s compensation BIP trust is included inthat of treasury stock shares to be excluded in calculating the average number of shares during the current fiscal year. The number of such treasury stock sharesdeducted in calculating net assets per share as of March 31, 2022 was 399,468, and 374,149 as of March 31, 2023. The average number of treasury stock sharesdeducted in calculating net income per share and diluted net income per share for the fiscal year ended March 31, 2022 was 402,583, and 385,835 for the fiscal
year ended March 31, 2023.

Notes:
1. The figures in parentheses for the balances as of March 31, 2023 are the amounts payable within one year of the total outstanding and are listed as current
liabilities in the consolidated balance sheets.
2. The amounts of bonds scheduled to be redeemed within five years subsequent to March 31, 2023 are as follows.
Millions of yen
Due within one year

25. Subsequent Events
25.1

Stock repurchase

At the Board of Directors meeting held on May 15, 2023, the Company resolved matters concerning stock repurchase as shown below in accordance with Article¥ 30,000

Due after one year through two years

15,000Due after two years through three years

30,000Due after three years through four years

10,000Due after four years through ﬁve years

15,000156 of the Companies Act of Japan, as applied pursuant to Paragraph 3 of Article 165 of the same Act.
25.1.1

Purpose of stock repurchase

To enhance shareholder return and to improve capital efficiency
25.1.2

Details of stock repurchase

I.

Class of share

Common stock of the Company

II.

Total number of shares of common stock to be repurchased

Up to 600,000 shares(0.25% of the total number of shares of common stock outstanding [excluding treasury
stock])

135

III. Total amount of purchase

Up to 2,000,000,000 yen

IV. Period of purchase

From May 24, 2023 to June 23, 2023

V. Purchase method

Market buying on Tokyo Stock Exchange

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

136

Profile

Financial Section and Corporate Data

Statements of loans payable

Short-term borrowings
Current portion of long-term debt
Current portion of lease obligations
Long-term debt (excluding current portion)
Lease obligations (excluding current portion)
Other interest-bearing debt
Commercial paper (to be repaid within one year)
Total
Notes:
1. The balances refer to those after the elimination of transactions between
companies in the consolidated group.
2. “Average interest rate” of loans payable refers to the weighted averageinterest rate for outstanding loans as of the end of the fiscal year ended
March 31, 2023.
3. For lease obligations, “average interest rate” is not shown because theCompany uses mainly the method that includes the amount of interest
in total lease obligations and that spreads the total amount of interest
equally over each fiscal year of the lease period.
4. The repayment schedule for long-term debt and lease obligations (excluding
those scheduled to be repaid within one year) within five years subsequent

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Quarterly financial information in the fiscal year ended March 31, 2023

Balance as ofApril 1, 2022
¥ 91,466
54,271
3,834
649,476
9,916

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter¥ 228,993¥ 467,160¥ 716,444¥ 968,300

Income before income taxes for quarter of the ﬁscal year (Millions of yen)

25,75948,651

78,37375,012

Net income attributable to owners of the parent for quarter of the ﬁscal year
(Millions of yen)

16,826

31,05051,051

46,952

Net income per share for quarter of the ﬁscal year (Yen)

69.84

128.87211.89194.88

Accounting period

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter¥ 69.84¥ 59.03¥ 83.02¥ (17.02)

Cumulative period

Millions of yen
Item

Creating Real Value:
The Processes

Others

Notes to the Consolidated Financial Statements

26.2

Creating Real Value:
Our Story

Balance as ofMarch 31, 2023
¥ 96,650
91,331
4,251
634,613
9,503

Average interest
rate
0.339%
0.825
̶
0.963
̶

Repayment deadline̶̶̶2024‑2043
2024 2032

50,00010,0000.000

̶858,964

846,350̶̶Long-term debt

Net income (loss) per share for quarter of the ﬁscal year (Yen)Millions of yen

Due after one year through two years¥ 83,914

Due after two years through three years

72,277

Due after three years through four years

67,429Due after four years through ﬁve years

77,873

Lease obligations

Revenues from operations (Millions of yen)

Millions of yen

Due after one year through two years¥ 3,325

Due after two years through three years

2,112

Due after three years through four years

1,127

Due after four years through ﬁve years

971

to March 31, 2023 is as follows.

26.3

Schedule of asset retirement obligations

The schedule is omitted as the significance was negligible.

137

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

138

Major Group Companies■ Entertainment

Automobile

254,281,385

Hanshin Contents Link Corporation
Stage

Hankyu Corporation

Tokyo Office (Personnel and General Affairs Div.)

Takarazuka Creative Arts Co., Ltd.

Tokyo 100-0006, Japan

Hankyu Bus Co., Ltd.

Umeda Arts Theater Co., Ltd.

Phone: +81-3-3503-1568

Hankyu Corporation

Alna Sharyo Co., Ltd.

■ Travel
Travel agency

Itec Hankyu Hanshin Co., Ltd.
YMIRLINK, Inc.

Name of company

Hankyu Travel International Co., Ltd.

Internationaltransportation

Hankyu Hanshin Express Co., Ltd.
Hankyu Hanshin Logipartners Co., Ltd.
HHE (USA) Inc.

Hankyu Hanshin Properties Corp.

HHE (Deutschland) GmbHHankyu Corporation

HHE (HK) Limited

Hanshin Electric Railway Co., Ltd.

HHE Southeast Asia Pte. Ltd.

Hankyu Hanshin Properties Corp.

HHE: Hankyu Hanshin Express

Hankyu Hanshin High Security Service Co., Ltd.
Hankyu Hanshin Clean Service Co., Ltd.

■ Other
Construction

Hankyu Hanshin REIT Asset Management, Inc.
Hankyu Hanshin Housing Support Ltd.

Name of company

hankyu hanshin marketing solutions Inc.

Hanshin Hotel Systems Co., Ltd.

Outsourcing services
for personnel andaccounting services

Hankyu Hanshin Business
Associate Co., Ltd.

Arima View Hotel Co., Ltd.

Credit and point card Hankyu Hanshin Card Co., Ltd.

Hankyu Hanshin Hotels Co., Ltd.

Group ﬁnance■ Equity-Method Affiliates (As of March 31, 2023)
Main business

Name of company

Department store

H2O RETAILING CORPORATION(Securities code: 8242)

Railway operations

Nishi-Osaka Railway Co., Ltd.
Kobe Electric Railway Co., Ltd. (Securities code: 9046)

Motion picture business

TOHO CO., LTD. (Securities code: 9602)

Real estate leasing

TOKYO RAKUTENCHI CO., LTD. (Securities code: 8842)

Commercial broadcasting

Kansai Television Co., Ltd.

Hankyu Hanshin Holdings Integrated Report 2023

Transfer Agent

Mitsubishi UFJ Trust and Banking Corporation

Ownership Breakdown
Number of shares(Thousands)

Percentage(%)

The Master Trust Bank of Japan, Ltd. (Trust account)

37,076

15.29

Custody Bank of Japan, Ltd. (Trust account)

13,393

5.52

Nippon Life Insurance Company(Standing Proxy: The Master Trust Bank of Japan, Ltd.)

5,224

2.15

STATE STREET BANK WEST CLIENT‒TREATY 505234(Standing Proxy: Mizuho Bank, Ltd. Settlement &Clearing Services Division)

4,683

1.93

H2O RETAILING CORPORATION

4,207

1.74

JP MORGAN CHASE BANK 385781(Standing Proxy: Mizuho Bank, Ltd. Settlement &Clearing Services Division)

2,913

1.20

Sumitomo Mitsui Banking Corporation

2,181

0.90

STATE STREET BANK AND TRUST COMPANY 505103(Standing Proxy: Mizuho Bank, Ltd. Settlement &Clearing Services Division)

2,105

0.87

Custody Bank of Japan, Ltd. (Trust account 4)

1,989

0.82

SSBTC CLIENT OMNIBUS ACCOUNT(Standing Proxy: HSBC Tokyo)

1,977

0.82

Name

Financial
institutions

28.14%

Individuals
and others

41.22%

Securities
companies

1.19%

Other
corporations

7.70%

Foreigncorporations, etc.
(individuals)

Foreigncorporations, etc.
(excl. individuals)

0.01%

21.74%Hanshin Kensetsu Co., Ltd.
Chuo Densetsu Co., Ltd.

Advertising andmedia design

PT CPM Assets Indonesia

Tokyo

Principal Shareholders

Bay Communications Inc.

Hanshin Electric Railway Co., Ltd.

Hankyu Hanshin Building Management Co., Ltd.

100 shares

Stock Exchange Listing

Name of company

Information andcommunication
technology

Name of company

Hankyu Corporation

Fax: +81-3-3508-0249

Unit of Trading■ Information and Communication Technology■ International Transportation
Name of company

Number of Shareholders 78,317

17F Toho Hibiya Bldg. 1-2-2, Yurakucho, Chiyoda-ku,

Kobe Rapid Transit Railway Co., Ltd.

Hanshin Station Net Co., Ltd.

139

Issued Shares

Nose Electric Railway Co., Ltd.

Hankyu Sekkei Consultant

Hotel640,000,000

Fax: +81-6-6373-5042

SportsHankyu Style Labels Co., Ltd.

Real estate sales andothers

22,527 (consolidated)

Authorized Shares

Hanshin Tigers Baseball Club, Ltd.

Eki Retail Service Hankyu Hanshin Co., Ltd.

Real estate leasing

Number of Employees

Hanshin Electric Railway Co., Ltd.

Hanshin Taxi Co., Ltd.

■ Real Estate

March 31

(IR Office, Corporate Communication Dept., Group Planning Div.)

Hankyu Taxi Inc.

Other

¥99,474 million

Fiscal Year-End

Hanshin Electric Railway Co., Ltd.

Hanshin Bus Co., Ltd.

Retailing

Paid-in Capital

1-16-1, Shibata, Kita-ku, Osaka 530-0012, Japan
Phone: +81-6-6373-5001

Kita-Osaka Kyuko Railway Co., Ltd.

Financial Section andCorporate Data

Head Office
Name of company

Hankyu Corporation

Creating Real Value:
The Foundations

Hankyu Hanshin Holdings, Inc. (As of March 31, 2023)

Name of company

Railway operations

Creating Real Value:
The Processes

Company Overview and Investor Information■ Consolidated Subsidiaries (As of March 31, 2023)■ Urban Transportation

Creating Real Value:
Our Story

ProfileFinancial Section and Corporate Data

Hankyu Hanshin Financial Support Co., Ltd.

Stock Price and Annual Trading Volume (Tokyo Stock Exchange)
Stock price (¥)

5,000

Stock price

Trading volume(Thousand shares)

Trading volume (right axis)

200,000

4,000

160,000

3,000

120,000

2,000

80,0001,000

40,000

0

0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023 (FY)

Notes:
1. The stock prices are as of the end of each ﬁscal year (March 31). The trading volumes are for each ﬁscal year (April 1 to March 31).
2. The data takes into account the reverse stock split and the change of trading unit conducted with an eﬀective date of August 1, 2016.

Hankyu Hanshin Holdings Integrated Report 2023

140

Hankyu Hanshin Holdings, Inc.
1-16-1, Shibata, Kita-ku, Osaka 530-0012, Japan
Phone: +81-6-6373-5001 Fax: +81-6-6373-5042
https://www.hankyu-hanshin.co.jp/en/

Hankyu Hanshin Toho Group