Hankyu Hanshin Holdings Group
Results Briefing Materials for
Second Quarter of Fiscal 2019(Ended September 30, 2018)
November 8th, 2018
Hankyu Hanshin Holdings, Inc.
9042 http://www.hankyu-hanshin.co.jp/en/

Contents
Ⅰ. Performance Highlights for the Second Quarter of
Fiscal 2019 (fiscal year ending 31st March 2019)･･･

Ⅱ. Forecasts for Fiscal 2019 (fiscal year ending
31st March 2019)[Change from May forecasts]･･･ 20

Ⅲ. Key Topics for the Second Quarter of Fiscal 2019･･･ 28

Ⅳ.Others①Medium-Term Management Plan･･･ 322(Reproduced from the results briefing materials released in May 2018)②Key Strategies･･･ 46

Ⅴ.Referential Materials･･･ 60This document contains forward-looking statements such as business performance forecasts. These statements are based on currently
available information and what we believe to be reasonable assumptions; they do not, however, represent guarantees of future performance.
Actual results or developments may differ materially from those in the forward-looking statements as a result of various factors.

1

Ⅰ. Performance Highlights for

the Second Quarter of Fiscal 2019(fiscal year ending 31st March 2019)2

3

Consolidated Statements of Income(Summary)
1H FY2019
Results

FY2018Results

ChangeConsolidated Subsidiaries
Equity-Method Affiliates
Total

94 companies 92 companies +2 (3 companies increase, 1 company decrease)
11 companies 11 companies
105 companies 103 companies +2(¥ million)

1H FY2019
Results

1H FY2018
Results

374,792

361,906+12,885(+3.6%)

56,63562,661-6,026(-9.6%)

Non-operating income

4,329

6,524

-2,194Non-operating expenses

6,094

6,334

-239

54,87062,852-7,981(-12.7%)

1,116

9,294

-8,178Gain on contributions for construction-7,973

3,065

9,569

-6,503

Loss on reduction of noncurrent
assets -7,801, Loss on retirement of
noncurrent assets＋1,321

Net income attributable to33,853owners of the parent -2.0billion yen

41,649-7,796(-18.7%)（※）The impact ofnatural disasters-2.8billion yen

Revenues from operations
Operating income

Ordinary income-2.4billion yen-2.4billion yen

Extraordinary income
Extraordinary loss

Losses associatedwith natural
disasters
0.5billion yen

1H FY2019
Results（Reference）

1H FY2018
Results

ChangeRemarks
For details,
please see next page
Equity in income of affiliates -2,783

ChangeDepreciation and amortisation

26,25825,940+317

Financial balance ① - ②-3,930-4,323+392

Interest and dividend income①

914

792

+122

Interest expense②

4,845

5,115

-269

※Affected by the 2018 Osaka earthquake, 2018 Japan floods, Typhoon Jebi, 2018 Hokkaido
Eastern Iburi earthquake (travel business only), and Typhoon Trami.

4Consolidated Statements of Income (Breakdown for each business segment)[Key results in current period]
・Across the segments, operating revenue increased as condominium sales increased YOY,
but operating income decreased. Many businesses were affected by natural disasters.
Other factors included the relatively low number of Hanshin Tigers’ regular season
games and the sell-off of commercial land last year.
Revenues from operations(¥ million)

1H FY2019
Results

1H FY2018
Results

118,372

118,127

The impact of natural
disasters -1.2billion yen

Urban Transportation

Segment income

Change99,63589,448+10,187

Entertainment andCommunications

64,91964,960-40

18,083

18,377-293

44,16340,163+4,00031,39432,338-943

16,822

17,500-677-18,600-19,009+408-0.9billion
yenInternational
Transportation

Hotels

-0.6billion
yen

Other
Adjustment
Total-2.8billion
yen374,792

361,906

1H FY2018
Results

23,724

24,134-410

17,902

19,245-1,343

14,132

15,781-1,649

1,118

2,463

-1,345

828

1,609

-780

-11

492

-504

725

522

+202

-1,783-1,587-195

56,63562,661-6,026+244

Real Estate

Travel1H FY2019
Results+12,885-1.1billion
yen-0.8billion
yen-0.4billionyen-2.4billion
yenChange5

Urban Transportation Results

The impact of natural disasters
Revenues from operations：-1.2billion yen
Operating income：-1.1billion yen[Railway]・Operating revenue was on par with last year’s level due the impact of natural disasters.
Operating income declined due to an increase in depreciation and amortisation.
[Automobile]
・The addition of a consolidated subsidiary resulted in higher operating revenue. However,operating income declined due to the impact of natural disasters and higher fuel costs.
(¥ million)

1H FY2019
Results

1H FY2018
Results

Change%Revenues from operations

118,372

118,127

+244

+0.2%

Operating income

23,724

24,134

-410

-1.7%

[Breakdown by type of business](¥ billion)
Revenues from operations

1H FY2019
Results

Y on YThe impact of natural
disasters -0.7billion yen

76.3

-0

Automobile-0.2billion yen

24.8

+0.7

Retailing-0.3billion yen

15.1

-0.3

Advertising

4.3

+0.3

Others2.5-0.7

Railway*Not including head office expenses /adjustments.
6

[Urban Transportation] Railway Performance Results
Hankyu Corporation

Fare revenues (¥ million)*

Passenger volumes (Thousands)*

1H FY2019
Results

1H FY2018
Results

Commuter pass

16,987

16,902+85(+0.5%)

173,385

172,347 +1,038(+0.6%)

Workers

14,58014,481+98(+0.7%)

119,759

118,620 +1,138(+1.0%)

Students

2,407

2,420

-13(-0.5%)

53,62653,726-100(-0.2%)

Other tickets

31,21531,532-316(-1.0%)

158,429

159,933-1,503(-0.9%)

Total

48,20348,434-231(-0.5%)

331,815332,280-465(-0.1%)

Change1H FY2019
Results

1H FY2018
Results

Change

The impact of natural disasters -0.6billion yen

Hanshin Electric Railway
Fare revenues (¥ million)*

Passenger volumes (Thousands)*

1H FY2019
Results

1H FY2018
Results

Commuter pass

6,053

5,975

+77(+1.3%)

62,92762,036+891(+1.4%)

Workers

5,410

5,338

+71(+1.3%)

49,364

48,645+718(+1.5%)

Students643

637+6(+1.0%)

13,562

13,390+172(+1.3%)

Other tickets

11,35011,186+164(+1.5%)

62,20061,411+788(+1.3%)

Total

17,404

17,161+242(+1.4%)

125,127

123,448 +1,679(+1.4%)

Change1H FY2019
Results

1H FY2018
Results

Change

The impact of natural disasters -0.1billion yen＊ Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway

7

[Urban Transportation] Transportation Revenue (Factors of YoY Change)《Hankyu Corporation》《Hanshin Electric Railway》

Transportation revenue (tier 1 + tier 2)

Transportation revenue (tier 1 + tier 2)(¥ million)

Totals for commuter passes
and other tickets

1Ｑ

2Ｑ

First half
total(¥ million)
Totals for commuter
passes and other tickets

1Ｑ

2Ｑ

First half
total

FY2019 Results

24,389 23,814

48,203

FY2019 Results

8,640

8,764

17,404FY2018 Results

24,533 23,902

48,434FY2018 Results

8,474

8,687

17,161

+165

+76

+242

+2.0％ +0.9％+1.4％

Change

-144

-88

-231

Change

(%)

-0.6％

-0.4％

-0.5％

(%)

Factors of YoY Change (estimated)
・Natural disasters (e.g., earthquakes and typhoons) during period-¥560million
・Other factors (e.g. increase in line-side areas populations andothers)+¥329million

Factors of YoY Change (estimated)
・Natural disasters (e.g., earthquakes and typhoons) during period-¥70million
・Other factors (e.g. increase in line-side areas populations, andthe strong performance of the Hanshin Namba Line and others)＋¥312million

8[Urban Transportation] Referential Information
Hankyu Line: Transportation revenue (tier 1 + tier 2)(¥ million)
1H
FY201933,198 16,987
63,137 31,215
96,335 48,203

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
31,88060,08791,967

Commuter passes
Other tickets
Total

31,126
58,582
89,70829,48460,00089,48529,92260,26890,19130,39160,74991,141

31,29961,63092,92931,54960,91092,45932,272
62,92095,192

32,62862,72095,348105%

FY2009＝100%

(FY)

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Hanshin Line: Transportation revenue (tier 1 + tier 2)
1H
FY2019
11,797
6,053
21,638 11,350
33,436 17,404

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Commuter passes
Other tickets
Total

8,913
16,31625,2309,642
18,39628,038

10,126
18,89929,025

10,623
19,42230,045

10,74019,66930,41011,00820,26031,269

11,107
20,286
31,394

11,372
21,03532,407

11,563
21,13632,699133%

FY2009＝100%★ Opening of Hanshin Namba Line(March, 2009）

(FY)

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

9

Real Estate Results[Real estate leasing]・Operating income and revenue both increased. Rental buildings in the Umeda area andelsewhere performed well. Another factor was the collection of tenant-borne construction
fees following completion of phase 1 of the Umeda 1-1 Project.
[Real estate sales and Others]
・Operating revenue increased due to a YOY increase in total number of condominium
units sold. However, operating income decreased due to the sell-off of commercial land
last year.
(¥ million)

1H FY2019
Results

1H FY2018
Results

Revenues from operations

99,63589,448Operating income

17,902

19,245

Change%+10,187 +11.4%-1,343-7.0%[Breakdown by type of business](¥ billion)
Revenues from operations

1H FY2019
Results

Y on Y

Real estate leasing

53.8

+1.1

Real estate sales and Others

54.5

+9.7

*Not including head office expenses /adjustments.

Condominium sales: up 149 (332 units; previous year = 183 units)
10Entertainment and Communications Results[Sports]
・Operating income and revenue both declined because there were 5 fewer Hanshin
Tigers’ regular season games this year (65 games were held, compared to 70 last year).
[Stage]・Operating revenue and income both declined. There was a reactionary decline in salesof show-related merchandise (last year, sales were boosted by the departure of a
popular actor). Another factor was that relatively few shows were staged this year.
[Communication, media and Others]
・Operating revenue and income both increased due to the addition of a consolidated
subsidiary and a higher number of orders in the information services business.
(¥ million)

1H FY2019
Results

1H FY2018
Results

Change%Revenues from operations

64,91964,960-40-0.1%Operating income

14,132

15,781-1,649-10.5%[Breakdown by type of business](¥ billion)
Revenues from operations

1H FY2019
Results

Y on YSports

26.2

-0.3

Stage

16.4

-0.7

Communication, media and Others

22.8

+0.9

*Not including head office expenses /adjustments.
11

Travel Results

The impact of natural disasters
Revenues from operations：-0.9billion yen
Operating income：-0.8billion yen

・Although the overseas travel segment achieved strong results for China and Hong Kong
destinations, operating revenue and income both declined due the impact of natural
disasters and higher costs for advertising and other items.

(¥ million)

1H FY2019
Results

1H FY2018
Results

Change%Revenues from operations

18,083

18,377

-293

-1.6%

Operating income

1,118

2,463

-1,345-54.6%[Performance Highlights for the Second
Quarter of Fiscal 2019]【Overseas travel】◆Overseas travel billings : Ranking 3(※)
Billings： ￥113.3billion（Y on Y +7.0%)◆Domestic travel billings : Ranking 6(※)
Billings： ￥69.7billion （Y on Y -1.0%)◆Total travel billings : Ranking 5(※)
Billings： ￥184.8billion（Y on Y +4.0%)

Despite the impact of natural disasters, volume wason par with last year’s level thanks to strong numbersof visitors to China, Hong Kong, and other Asian
destinations.
【Domestic travel】
Travel to Hokkaido was sluggish due to the impact ofSource: Sales volume indicates the aggregated volume for April to September.
natural disasters. Consequently, volume was slightly
The values for industry ranking are based on aggregated results from April toAugust.
lower than last year.
Source: Japan Tourism Agency, ‘Bulletin on Sales Volumes among the Major
Travel Agents’ (Shuyō ryokō-sha no ryokō toriatsukai jōkyō sokuhō)※ The above figures indicate the aggregated results for Hankyu Travel
International, Hankyu Hanshin Business Travel, and Hanshin Travel International(intercompany transactions offset)

12International Transportation Results・Operating revenue increased thanks to strong air export volume in Japan. However,operating income declined due to increases in air freight charges and other costs.

(¥ million)

1H FY2019
Results

Revenues from operations

1H FY2018
Results

Change%44,16340,163+4,000+10.0%

Operating income

828

1,609

-780

-48.5%[Performance Highlights for the Second
Quarter of Fiscal 2019]

Air export consolidated freight weight (from Japan)
80,000・In Japan, air transport volume increased, andthe ocean transport and logistics businesses
performed well.
・In the United States, the logistics businessperformed well.
・In EMEA※ and East Asia, air transport volume
declined.
In ASEAN, performance was strong, particularly
in Thailand and Indonesia.
※EMEA = Europe, the Middle East, and Africa.

70,00060,00050,00040,00066,64962,47862,71372,21762,22561,09357,16555,01549,74739,86430,00020,00010,0000（unit：ton）2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 1H FY201913

Hotels Results

The impact of natural disasters
Revenues from operations：-0.6billion yen
Operating income：-0.4billion yen

Operating revenue and income both declined. One factor was the impact of natural
disasters. Other factors include the termination of Rokkosan Hotel’s management
contract in December 2017 and an increase in repair costs associated with renovationwork.

(¥ million)

1H FY2019
Results

Revenues from operations

1H FY2018
Results
32,338

-943

-2.9%

-11

492

-504

ー

Average daily rates (ADR) and occupancy rates of Hankyu Hanshin Hotels in
the Tokyo metropolitan area1 and Kansai area2
Kansai area ADR

Tokyo metropolitan area occupancy rate (right axis)

Kansai area occupancy rate (right axis)

19,00017,000

83.3%

92.2%

86.6%

88.6%

94.3%

90.5%

90.8%

17,221

14,288

95.4%
88.7%

92.0%
91.3%

1.
2.

31.4%

60.0%
15,817
15,44920.0%
14,14013,54940.0%
13,51010.0%
20.0%

10,210FY2014

38.1%

42.6%

36.9%
37.0%

40.6%41.6%

22.7%

25.0%
14.9%
12.3%

17.3%

The total figures for
1H FY2019 is 42.8％(+1.1 points fromprevious year)

0.0%
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

0.0%
FY2013

38.6%

40.0%
80.0%
30.0%

7,000
（Yen）

47.0%

100.0%

11,616
9,521

Kansai area

50.0%

16,665

14,61915,21011,000
9,000

93.9%

15,85315,00013,00092.6%

Non-Japanese guests as a percentage ofovernight-stay guests
Tokyo metropolitan area

Tokyo metropolitan area ADR

92.2%

%

31,394

Operating income

21,000ChangeFY2015FY2016FY2017FY20181H FY2019

（%）

（%）

Directly managed Hanshin Hankyu hotels, hotels in the Tokyo metropolitan area (including remm ROPPONGI, which opened in March 2017)
Directly managed Hanshin Hankyu hotels, hotels in the Kinki area (including remm SHIN-OSAKA, which opened in September 2012, not including
hotels managed under contract)

1H
FY201914

Consolidated Statements of Income(Non-operating profit and loss)(¥ million)

1H FY2019
Results

1H FY2018
Results

Operating income

56,63562,661-6,026

Non-operating income

4,329

6,524

-2,194

2,299

5,082

-2,783

6,094

6,334

-239

4,845

5,115

-269

54,87062,852-7,981Equity in income of affiliates

Non-operating expenses
Interest expenses

Ordinary income

Change15

Consolidated Statements of Income(Extraordinary profit and loss)(¥ million)

1H FY2019
Results

1H FY2018
Results

Extraordinary profit and loss

-1,949-274-1,675Extraordinary income

1,116

9,294

-8,178Gain on contributions for construction

593

8,567

-7,973

Settlement received

242

ー

+242

Other

280

727

-447

3,065

9,569

-6,503

Loss on reduction of noncurrent assets

649

8,451

-7,801

Loss on valuation of investment securities

1,551

230

+1,321

Other

864

887

-22

Extraordinary loss:

Change16

Consolidated Statements of Income(Net income attributable to owners of the parent)(¥ million)

1H FY2019
Results

1H FY2018
Results

Income before income taxes

52,92162,577-9,656

Total income taxes

17,971

20,100-2,129

Income taxes—current

19,15017,958+1,192

Income taxes—deferred-1,1792,142-3,322

Net income

34,95042,476-7,526

Net income attributable to noncontrolling interests

1,096

827

+269

Net income attributable to ownersof the parent

33,85341,649-7,796

Change17

Consolidated Balance Sheets
1H FY2019
Results

Net assets

Liabilities

Assets(¥ million)

FY2018Results

Current assets

289,971

290,448

Noncurrent assets

2,145,343

2,114,477

Total assets
Current liabilities

Long-term liabilities

ChangeRemarks
Trade receivables:-17,842-476 Land and buildings for sale:+18,157
Property and equipment and+30,865 intangible assets:＋24,506

Investment securities:+4,151

2,435,315 2,404,926 +30,389
398,572

1,146,328

406,909

1,131,503-8,337+14,824

1H
FY2019Results

FY2018Results

Debt

765,299

767,431-2,132

Bonds

112,000

92,000+20,000

Commercial paper

35,000-+35,000

Lease obligations

6,960

7,326

-366

919,260

866,758+52,501

Interest-bearing debt

Total liabilities

1,544,900 1,538,413+6,487

826,914804,764

Accumulated othercomprehensive income

34,39032,961+1,429Non-controlling interests

29,10828,786+322

Equity ratio

890,41435.4%

Accounts payable:-38,116
Long-term deferred contribution for construction:-8,110

Net income attributable to owners of theparent:+33,853+22,150 Less treasury stock, at cost:-10,125
Payment dividend:-4,970

Shareholders’ equity

Total net assets

Change866,512 +23,901
34.8%

+0.6p
18

Consolidated Statements of Cash Flows(¥ million)

1H FY2019
Results

1H FY2018
Results

27,745

39,16852,921
26,258-22,765-21,165

62,57725,940-23,145-18,332

Cash flows from investing activities-67,145-39,930

Purchases of noncurrent assets-79,728
15,198-53,682
16,26736,470510-10,171-4,97052,501-10,651-4,38916,037-501-3,431-69-320

27,501
1,935
26,006

22,530383
22,592

Cash flows from operating activities
Income before income taxes
Depreciation and amortisation
Decrease (increase) in inventories
Income taxes (paid) refunded

Receipt of contributions for construction

Cash flows from financing activities
Purchase of treasury stock

Dividends paid
[Reference] Decrease (increase) in interest-bearing debt

Effect of exchange rate changes on cash and cash equivalents

Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of year19

Ⅱ. Forecasts for Fiscal 2019(fiscal year ending 31st March2019)[Change from May forecasts]

20

Consolidated Statements of Income (Summary)(¥ billion)

FY2019Forecasts

FY2019Forecasts(As of Nov.)①(As of May)②

The impact of natural
disasters -3.6billion yen

Revenues fromoperations

Operating income

Ordinary income-2.9billion
yen-2.9billion
yen

There was no change because, although
the International Transportation
Business and Real Estate Businessachieved higher operating revenue, thiswas offset by the impact of natural
disasters.

760.3

+29.7

This decline reflects the impact ofnatural disasters.

105.2

+1.8

This decline reflects the decreasein operating income (see above) as
well as a decrease in equity inincome of affiliates.

103.8

-0.8

This decline reflects the decreasein ordinary income (see above) as
well as the losses associated withnatural disasters.

66.4

-1.4

790.0

-

107.0

110.0

-3.0

107.0

-3.5billion

Net income attributable to yen
owners of the parent

Remarks

790.0

103.0
65.0

70.0

FY2018Results

Change①-②(-2.7%)-4.0(-3.7%)-5.0(-7.1%)③

Change①-③

2.1billion
yen(Reference)
Depreciation andamortisation

54.5

55.8

-1.3

53.3

+1.2

Financial balance ①-②

-8.4

-8.7

+0.3

-8.7

+0.3

Interest and dividend income①

1.4

1.3

+0.1

1.3

+0.1

Interest expense②

9.8

10.0

-0.2

10.1

-0.3

127.0

108.7

+18.3

86.4

+40.6

Capital expenditure

21

Consolidated Statements of Income (Breakdown for each business segment)(¥ billion)[Upper table]
Revenues from operations[Lower table]
Operating income

Total

The impact of natural
disasters -3.6billion yen-2.9billion
yen

FY2019Forecasts

FY2019Forecasts(As of Nov.)①(As of May)
②

790.0

790.0

-

760.3

+29.7

107.0

110.0

-3.0

105.2

+1.8

241.7

-1.9

236.0

+3.8

41.6

+0.6

222.6

+17.3

41.0

+6.9

121.1

+4.3

17.8

-1.6

Operating revenue was as initially forecasted, as theimpact of natural disasters offset an increase in travel
to Asian destinations. Operating income declined due
to higher costs for advertising and other items.

34.0

+0.8

2.1

-1.4

Operating revenue increased due to strong airtransport volume in Japan. However, operating
income declined due to higher air freight charges.

83.7

+4.2

2.8

-0.9

67.2

-2.1

2.2

-0.9

Change①-②Remarks

FY2018Results③

Change①-③(Breakdown for each business segment)

Urban
Transportation-1.3billion
yen

239.8

-1.2billion
yen

42.2

42.9

-0.7

239.9

236.2

+3.7

47.9

48.0

-0.1

125.4

124.5

+0.9

16.2

16.7

-0.5

-1.0billion
yen

34.8

34.8

-

-0.8billion
yen

0.7

1.3

-0.6

87.9

83.6

+4.3

1.9

2.2

-0.3

65.1

66.4

-1.3

1.3

2.1

-0.8

Real EstateEntertainment andCommunications

TravelInternational
Transportation-0.9billion
yenHotels
-0.6billion
yen

Operating revenues and income both decreased
due the impact of natural disasters.

Operating revenue increased due to the sale ofleasehold interest in the land for condominiums.
Operating income was as initially forecasted.
Operating revenue increased thanks to thecommunications media business achieving higher
orders for its information services. However,operating income declined because the sportsbusiness recorded lower attendance for baseballmatches.

Operating revenues and income bothdecreased due the impact of natural disasters.

22

[Urban Transportation] Railway Performance Forecasts
Hankyu Corporation

Fare revenues (¥ million)*
FY2019Forecasts(As of Nov.)

FY2018Results

ChangePassenger volumes (Thousands)*
FY2019Forecasts(As of Nov.)

FY2018Results

ChangeCommuter pass

33,55633,198+358(+1.1%)

338,428

335,005 +3,422(+1.0%)

Workers

29,041

28,690+350(+1.2%)

237,899

234,816 +3,082(+1.3%)

Students

4,515

4,507

+7(+0.2%)

100,528

100,189+339(+0.3%)

Other tickets

63,143

63,137+5(+0.0%)

320,016

319,939+76(+0.0%)

Total

96,70096,335+364(+0.4%)

658,444654,945 +3,498(+0.5%)

The impact of natural disasters -0.6billion yen

Hanshin Electric Railway

Fare revenues (¥ million)*
FY2019Forecasts (Asof Nov.)

FY2018Results

ChangePassenger volumes (Thousands)*
FY2019Forecasts(As of Nov.)

FY2018Results

ChangeCommuter pass

11,96011,797+162(+1.4%)

123,785

122,073 +1,711(+1.4%)

Workers

10,726

10,576+149(+1.4%)

97,77896,401 +1,376(+1.4%)

Students

1,233

1,221

+12(+1.1%)

26,00725,672Other tickets

21,91821,638+280(+1.3%)

121,052

119,567 +1,484(+1.2%)

Total

33,87933,436+443(+1.3%)

244,837

241,641 +3,195(+1.3%)+334(+1.3%)

The impact of natural disasters -0.1billion yen＊ Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway
23

Fiscal 2019 Management Indicators Outlook
FY2018Results

FY2019Forecasts

FY2019Forecasts(As of May)(As of Nov.)

Operating income¥105.2billion¥110.0billion¥107.0billion

EBITDA※1¥160.8billion¥168.0billion¥164.0billion

Interest-bearing debt

¥866.8billion¥900.0billion¥900.0billion

Interest-bearing debt /EBITDA ratio

5.4times

5.4times

5.5times

D/E ratio※2

1.0times

1.0times

1.0times¥66.4billion¥70.0billion¥65.0billion

8.2%

8.1%

7.5%

¥837.9billion¥875.0billion¥875.0billion

5.2times

5.2times

5.3times

Net income attributable toowners of the parent
ROE(Reference)
Net interest-bearing debt※3
Net interest-bearing
debt/EBITDA ratio※1 EBITDA=operating income + depreciation expenses + amortisation of goodwill※2 D/E ratio＝interest-bearing debt / equity※3 Net interest-bearing debt=interest-bearing debt - cash and deposits
24

《Reference》 Trends in operating revenues and operating income
752.3

Revenues fromoperations

Operating income

Ordinary income

653.3

638.8

649.7

90.7

682.4

70.1
74.9

73.8
64.7

679.2

685.9

74.9

91.8

81.2

94.0

57.4

※１

20.6
FY200950.4

10.8
FY2010

104.1

105.2

107.0

104.5

100.6

103.8 103.0

85.6

65.4

FY2008

790.0

736.8

707.4

110.3
87.9

77.8

0.6

760.3

owners of the parent
※2

683.7

(¥ billion)

Net income attributable to

70.0

71.3

FY2016FY2017

66.4

65.0

54.2
46.5

39.3

39.7

FY2012FY201346.4

18.1
FY2011FY2014FY2015FY2018FY2019forecasts※1 Includes Department Store Business (consolidated up to the first half of fiscal 2008).
※2 As of fiscal 2017, the presentation of revenues from operations of the International Transportation Business has changed from net togross amounts.

25

《Reference》 Consolidated Statements of Capital Expenditure
FY2019Forecasts

FY2019Forecasts(As of Nov.)(As of May)

①

②

127.0

108.7

Urban Transportation

39.0

39.3

Real Estate

66.1

Entertainment andCommunications(¥ billion)

FY2018Results

Change
①-②

③

86.4

+40.6

-0.3

35.0

+4.0

47.3

+18.8

39.9

+26.2

10.8

9.9

+0.9

7.6

+3.2

Travel

1.3

1.2

+0.1

0.5

+0.8

International Transportation

0.9

1.5

-0.6

0.7

+0.2

Hotels

2.5

2.5

-

2.3

+0.2

Total capital expenditure+18.3

Change①-③(Breakdown for each business segment)26

《Reference》 Consolidated Statements of Depreciation and Amortisation, EBITDA(¥ billion)

FY2019Forecasts

FY2019Forecasts(As of Nov.)(As of May)①②

FY2018Results

Change①-②③

Change
①-③

54.5

55.8

-1.3

53.3

+1.2

Urban Transportation

27.8

28.5

-0.7

26.7

+1.1

Real Estate

16.6

17.1

-0.5

16.5

+0.1

Entertainment and Communications

7.2

7.3

-0.1

6.8

+0.4

Travel

0.7

0.7

-

0.7

+0.0

International Transportation

0.7

0.6

+0.1

0.7

+0.0

Hotels

2.2

2.2

-

2.1

+0.1

164.0

168.0

-4.0

160.8

+3.2

Urban Transportation

70.0

71.4

-1.4

68.2

+1.8

Real Estate

64.4

65.1

-0.7

57.5

+6.9

Entertainment and Communications

23.4

24.0

-0.6

24.6

-1.2

Travel

1.4

2.0

-0.6

2.7

-1.3

International Transportation

2.6

2.8

-0.2

3.4

-0.8

Hotels

3.5

4.3

-0.8

4.3

-0.8

Total Depreciation and amortisation(Breakdown for each business segment)

Total EBITDA(Breakdown for each business segment)

27

Ⅲ. Key Topics for the Second Quarterof Fiscal 201928

Umekita Phase II Development Project【Background】
JV9, which includes Hankyu Corporation, and Hankyu Hanshin Properties Corporation entered a consortiumwith four other firms. The consortium submitted a bid for the Umekita Phase II Development Project in a
public tendering process organized by the Urban Renaissance Agency (a semipublic Independent
Administrative Institution). The consortium won the bidding.
The core theme of the project is to integrate green space with innovation. Building on the first phase of the
project (which culminated in the opening of Grand Front Osaka), the consortium is working to achieve thistheme and set a new standard in urban design for Kansai and even the whole of Asia.

【Outline of plan】(based on the bid made in May 2018; subject to change)<Private-sector zone specifications>
Zone

North zone

South zone

Site area 15,726㎡

30,429㎡

Total floor 146,900㎡
space

374,660㎡

Facilities

Innovation facilities, hotel, MICE facilities, offices,
hotels, commercial
residence, others
facilities, residence, others<Urban open space specifications>
Site area

45,000㎡

Total facility 12,500㎡
floor area
Facilities

Museum, experiential learning facilities, roofed open
spaces, restaurants, shops, others<Schedule>
Phased landtransfer

From September 2020

Construction in
private-sector From October 2020
zones
Advance
openings※

Around summer 2024

※For some private-sector zone facilities andpart of the urban open space
How the area as a whole will look once completed29

New hotel location in Yodobashi Umeda Tower (tentative name)【Purpose/concept of project】· Hankyu Hanshin Hotels will open a newlocation in Yodobashi Umeda Tower (tentativename), which is a project of Yodobashi
Holdings in the north of Umeda. The opening
will allow the group to expand its presence inthe Umeda area and gain a greater share of
the hotel market.

【Exterior view】【Hotel outline】
Site

1-1,Ofukacho,Kita-ku,
Osaka

Number of rooms Approx. 1,000
Scheduled opening
Early spring, 2020
date

【Location】
Hankyu Umeda
StationPlan site

Yodobashi Umeda

JR Osaka
station30

Sale of real-estate to Hankyu Hanshin REIT
Hankyu Hanshin HoldingsGroup
HankyuCorporation

Transaction scheduled forsecond half of fiscal 2019

Hankyu Hanshin
REIT

Hankyu Hanshin
Properties
GRAND FRONTOSAKA(4.9%)
Site of Valor Takatshuki(tentative name)

GRAND FRONTOSAKA(4.9%)※1※1 Hankyu Corporation willretain the residual equity

Site of Valor Takatsuki(tentative name)※2※2 Location：Wakamatsucho,
Takatsuki, Osaka
Surface area：7,366㎡

LaLaport Koshien(site)※3
LaLaport Koshien(site)※3 Address: Hachibancho, Koshien,
Nishinomiya (LaLaport Koshien)
Surface area:126,052㎡■ We will work closer with Hankyu Hanshin REIT in developing a mutually beneficial relationship【Purpose of sale】
・Proceeds from the sale of the assets will help fund the long-term investments (particularly in real-estate) necessary
for achieving our long-term vision.
・In the case of Valor Takatsuki, this short-term real-estate project, in which we develop (e.g., attract tenants to)the site and then sell it to Hankyu Hanshin REIT, helps us expand our real-estate sales repertoire.
・Hanshin Electric Railway will acquire large assets in the Koshien area, a key location served by our lines.
31

Ⅳ.Others①Medium-Term Management Plan
(Reproduced from the results briefing materials
released in May 2018)32

Long-Term Vision（Overall vision）
The slogan for the Hankyu Hanshin Holdings Group’s Long-Term Vision for 2025 (fiscal 2026) is:‘Enhancing line-side areas and expanding fields’
Sustainably enhance corporate value
Enhance daily life
(customer) value
Regarding these socioculturalchanges as business
opportunities, we will provide
innovative products and services
through our business operations.

Enhance social value
Build relationships of trustwith various stakeholders,meet their expectations, andcontribute to society.

Enhance economicvalue
We will strive to maintain andimprove our profitability andfinancial soundness as a topclass private railways
operator.

Umeda and line-side areas
x stock businesses

Tokyo metropolitan area and overseas
markets x stock businesses

Make our railway theabsolute best among the
Kansai networks.
Strategy①

concentrated in Umeda and line-side areas).

flow businesses

Strengthen competitiveness by
Construct a stable revenue base in thoroughly pursuing brandthe Tokyo metropolitan area andoptimisation and differentiation.
overseas markets.
(diversify the portfolio, which is currently
Strategy③
Strategy②Groupwide initiatives,
new business fields, etc.

Make greater use of the Group’s collective strength and develop new
business fields.
Strategy④
The coming age of fullscale population decline

Further technologicaladvances (AI, IoT, etc.)

Economic growthin Asia

Declining birth rate
and aging population

Crumbling infrastructure

Improvements to public transport
Growing numbers of infrastructure (airports, rail andmotorway networks)
overseas visitors

Tightening oflabour market
Concentration of
population into
urban areas

Opportunity for Kansai to develop its position as gateway for Asia and the wider world

33

Long-Term Vision（Four strategies）
Umeda Line-side
areas
・

Tokyo
metropolitan
area overseas

・

Umeda and line-side areas x stock businesses
Make our railway the absolute best among the Kansai networks.
Strategy①
We aim to increase the resident and non-resident population of lineside areas. To this end, we will channel into these areas the dynamismof the Tokyo-Nagoya-Osaka axis and the power of Asia and otherregions of the world, attract new industries and cutting-edge
technologies ahead of other companies, and support efforts to develop
thriving local communities.

Flow business
Strengthen competitivenessby thoroughly pursuing brand
optimisation anddifferentiation.

Strategy③
Tokyo metropolitan area and overseas markets x
stock businesses
Construct a stable revenue base in the Tokyo metropolitan area
and overseas markets(diversify the portfolio, which is currently concentrated in Umeda
and line-side areas).
Strategy②
Our property portfolio is currently concentrated in Umea and line-side
areas. To compensate for downsizing in the Kansai area, we will
diversify our property profile by acquiring additional assets including
rental property in Tokyo’s large market and in overseas markets thatare set to grow.

Stock（Use assetes）
Group-wide initiatives, new business fields, etc.

Thoroughly optimise the Hankyu
Hanshin brand value anddifferentiate the products andservices from the competition soas to strengthen competitiveedge and achieve further
business expansion.

Flow（non-assets）

Make greater use of the Group’s collective strength and develop new business fields.
Strategy④
In addition to pursuing Group-wide initiatives, we will introduce cutting-edge technologies into existing businesses,
venture into new business fields, and thereby provide culturally enriched and innovative lifestyle options.
34

Long-Term Vision（Management Indicators）
We will pursue the four strategies with a view to achieving the following targets as of2025 (fiscal 2026). Achieving these targets will keep us on course for maintaining atleast the current levels of operating income in the 2040s, when demographic changes
will have had a major impact on business.

Profitability

Financial soundness

Management Indicators

Targeted figure for 2025
(FY2026)

operating income¥120 billion

EBITDA¥200 billion

Interest-bearing debt
/EBITDA ratio

Between5 and 6 times

・Ensure that we will be one of the most profitable private railway operators
in 2025 (fiscal 2026).
・While accelerating growth investment, ensure that we remain one of themost financially sound private railways operators.
35

Placement of Medium-Term Management Plan
Mission : What we try to achieve
By delivering “Safety and Comfort” and “Dreams and Excitement” ,we create satisfaction among our customers and contribute to society.

Values : What is important to us
Everything we do is for the customer. That’s where it all
starts.
Sincerity
Gain customers’ confidence by always being sincere.
Foresight &With our pioneer spirit and flexible thinking, we create a new
Creativity
value.
Respect for People Everyone is absolutely invaluable to the Group.
Customers FirstGroupManagement
Philosophy

Long-Term
VisionThe kind of company we hope to be as well as the basic approachand strategies for achieving this vision.

The Medium-Term Management plan sets out specificaction plans for medium-term projects.
Medium-Term
Management
Plan

As part of an annual rolling plan, we set out specific action plans with aview to achieving our Long-Term Vision. In the run-up to fiscal 2026, thecumulative impacts of these actions will bring us closer to our vision of
the company we hope to be in the long-term.

The current Medium-Term Management Plan is the first action plan following the unveiling of
our Long-Term Vision.
The plan defines fiscal 2022 as an interim target year or ‘milestone’ on the path to our LongTerm Vision, and the period from fiscal 2019 to fiscal 2022 will be an action plan period
during which we will draw up a detailed roadmap and start putting policies into action.
36

Current operating income levels
・From fiscal 2016 through fiscal 2018, operating income trended a little abovethe ¥100 billion mark in real terms, discounting special factors such as gainon the disposal of land for large-scale commercial facilities.
(¥ billion)

110.3
110
Impact of special
factors such as gainon the disposal ofland for large-scalecommercial facilities

104.1

105.2

100

operating income
営業利益

91.8

94.0

Real operating income
level(Approx.¥100 billion)

operating income(after adjusting for special factors)
営業利益(特殊要因調整後)

90

FY2014FY2015

Above the ¥90 billion mark,discounting special factors

FY2016FY2017FY2018

Above the ¥100 billion mark,discounting special factors
37

Framework of the Medium-Term Management Plan ①
・Under the current plan, we aim to raise the current operating income level from ¥100
billion to ¥120 billion by fiscal 2026. To this end, we will pursue actions in line with ourfour strategies, and in allocating our capital resources, we will focus on growthinvestments linked to the four strategies.
・Additionally, we will aim to raise operating income to ¥110 billion (the midway
point of the ¥100–120 billion region) by the interim/milestone year of fiscal 2022.
Four strategies～Business strategies related to the Long-Term Vision～①Further strengthen the stock businesses in the Umeda and line-side areas (e.g. railways, realestate leasing, media and communications, hotels)②Accumulate stock in the Tokyo metropolitan area and overseas markets③Increase competitiveness of flow businesses (real estate sales, sports, stage, information services,travel, and international transportation)④Make greater use of the Group’s collective energies and venture into new business fields

Financial policy• As part of our efforts to achieve our Long-Term
Vision, we will focus on growth investments
linked to the four strategies while aiming tofurther increase operating income and EBITDA.
• We will continue to maintain our financial
soundness. (Interest-bearing debt/EBITDA ratio
will be prioritised over interest-bearing debt as abenchmark for financial soundness.)• As for returns to shareholders, we envisage anannual dividend per share of ¥40 and a total
payout ratio of 30%.

Forward-looking investment
While striking a balance with financial soundness, we willprioritise growth investment under strategies ① to ④.

Maintaining
financialsoundness

Returns toshareholders

Prioritise interest-bearing
We envisage a total
debt/EBITDA ratio as a benchmark payout ratio of 30%.
for financial soundness.

38

Framework of the Medium-Term Management Plan ②
 Investments under the Strategies ① and ② (which involve stock businesses), excluding those foracquiring functioning property, will take some time to yield returns. Likewise, when it comes toinvestments under the fourth strategy (for developing new business fields), it will takeconsiderable time to establish new businesses.
⇒We expect that investments under Strategies ①, ②, and ④ will start contributing to operating income mainly inthe second half of the Long-Term Vision (fiscal 2023–2026).

 Therefore, for the current Medium-Term Management Plan (the first half of the Long-Term
Vision—fiscal 2019–2022), we will aim to raise operating income by ¥10 billion primarily
through investments under Strategy ③ (which involves flow businesses).

〈Four strategies〉
Strategy① Further strengthen the stock business in the Umeda and line-side aeras
Capture inbound demand/ Increase the value of our assets in the Umeda area/ Invigorate key
line-side bases/ Construct new rail links to improve the transport network
Strategy② Accumulate stock in the Tokyo metropolitan area and overseas markets
Acquire more stock in the Tokyo metropolitan area / Open more hotels in the Tokyo metropolitan
area/ Develop plans for acquiring stock (real-estate) overseas
Strategy③

Increase competitiveness of flow business (real estate sales,sports, travel, and international transportation)

Expand the condominium business in Japan and overseas / Develop the information
services business/ Raise the profitability of the Travel Business segment / Increase
handling volume in the International Transportation Business segment
Strategy④Make greater use of Group's collective energies and venture
into new business fields
39

Growth process in run-up to fiscal 2026 (hypothetical)

Aim to raise operating incomeby ¥10 billion by fiscal 2022
primarily in flow businesses

fiscal2022
Interim target year

fiscal2026
Final year ofLong-Term
Vision¥120 billion¥110 billion＋¥10 billion
fiscal2016–2018
Real operating income
level, discounting
special factors
Approx.¥100 billion

increase in flow businesses
investments in stockbusinesses
Current Medium-Term Management
Plan(fiscal2019–2022)＋¥10 billion(fiscal2023–2026)

Over the second half of the Long-Term Vision (fiscal 2023–2026), we expect to see a further rise of ¥10 billion in
operating income. This increase will be driven primarily by
the returns on investments in stock businesses (e.g., Umeda
1-1 Project). Other factors will include a further operating
income increase in flow businesses and contributions from the
new business fields we will develop.
40

Operating income trends in current plan・As part of our effort to achieve the operating income target of ¥120 billion by fiscal
2026, we will aim to make the Group capable of steadily reaching an operating income
level of ¥110 billion by fiscal 2022.

・Operating income is expected to reach ¥110 billion in fiscal 2019 because of gain on
disposal of land for large-scale commercial facilities and other special factors.
(¥ billion)

Impact of special factors(e.g., gain on disposal ofland for commercial
facilities)

Final year ofLong-Term
Vision(FY2026)

interim/milestoneyear(FY2022)

120
1200

110.0

110.3

110.0
104.1 105.2

120.0
＋10.0

＋10.0

100
1000

91.8

96.0

94.0

98.0

previous plancurrent plan

Hypothetical growth inoperating income

800
80
FY2014FY2015

IncomelevelsAbove the ¥90
discounting
billion markspecialfactors

FY2016FY2017FY2018FY2019A little above the ¥100 billion
mark

FY2020

FY2021

Above ¥100
billionFY2022

FY2023

FY2024FY2025

FY2026¥110 Proceed toward target ¥120of ¥120 billion
billionbillion41

Cash flows during current plan (estimates)
During the current plan, we expect EBITDA-measured cash flows of ¥680 billion.On theother hand, we expect outgoing cash flows of ¥910 billion as a result of actively investing
toward future growth.This will leave a shortfall of ¥230 billion; we will cover this shortfallwith additional borrowing.
【FY2019～2022 Hypothetical cumulative cash flow for four-year period】

Cash inCash out(¥billion)

Strategic investment
framework 100

EBITDA 680

Growth investment (forachieving the LongTerm Vision) 270
Investment in maintenanceand renewal of existing
infrastructure & etc. 240

Capitalinvestment(including
lending)
610

Cash out
total
910

Net increase in for-saleproperty and equity 60

Additionalborrowing 230

Return to Shareholders 80
Interest expense, tax
payment, etc. 160
42

Capital investment (including lending) in fiscal 2019-2022
Capital investment (including lending) in fiscal 2019-2022 is expected to total approx. ¥610 billion (up¥220 billion compared to the previous plan)
・Growth investment (for achieving the Long-Term Vision) will be ¥100 billion up from the previous plan.
・We will devote ¥100 billion for a new strategic investment framework (large-scale projects, M&A
activities, etc.)
・We will maintain the same level of investment in maintaining or renewing existing infrastructure while
ensuring that we invest the resources necessary to maintain safety.
Strategy③
Flow business andStrategy④New business fields¥610billion
Strategic investment
framework¥100billion¥390 billion¥170 billion（Approx.¥40billion
per year）

Increase of¥100 billion
from previous
plan¥220billion（Approx.¥55billion
per year）

Previous plan
FY2016～2019
for four-year period

Growth investment (forachieving the LongTerm Vision)¥270billion（Approx.¥70billion per
year）
Investment inmaintenance andrenewal of existing
infrastructure¥240billion（Approx.¥60billion per
year）

Current plan
FY2019～2022
for four-year period

Breakdown of¥270 billion
growthinvestments(Please see pages 48 to 56)

Approx.
10％

Approx.

30％

Approx.

Strategy②
Tokyo metropolitan area
and overseas markets x
stock businesses

60％

Strategy①
Umeda and line-side
areas x stockbusinesses(Please see pages 46 to 47) (Please see pages 40 to 45)

43Returns to Shareholders■Shareholder Return Policy
Pay stable annual dividends and acquire treasury stock- Regarding dividends of surplus for fiscal 2018, we plan to increase the annual
dividend per share from ¥35 to ¥40 (the total annual dividend will be ¥9.9
billion) and increase the total payout ratio from 25% to 30%. Accordingly, we
will acquire treasury stock (the total acquisition will be ¥10 billion).
- For fiscal 2019, the total payout ratio will be 30%, the annual dividend pershare will be ¥40, and we will acquire treasury stock.
<Reference> Formula for calculating total payout ratio
Total payout ratio of FY[N](％)=(Total dividend of FY[N])+(Acquisition of treasury stock in FY[N+1])(Net income attributable to owners of parent in FY[N])Acquisition of treasury stock

Total dividend

Dividend per share(right axis)

20
15
10
5

0
(¥ billion)

FY2013

35

9.1

30＊

8.7

7.6

7.6

8.8

25＊

6.3

35＊
30＊

FY2014FY2015FY2016× 100

8.8
FY20174040 (forecasts)

10.0

35

40

Total payout ratio of 30%,
dividend of ¥40, Company toacquire treasury stock (plan)25

9.9
FY201830

FY201920(¥)＊The Company conducted a 1-for-5 reverse stock split with an effective date of 1st August 2016. The per-share annual dividends for fiscal
years up to and including fiscal 2016 reflect the stock split.

44

Fiscal 2026 management indicators outlook
FY2018Results
Operating income
EBITDA※1
Interest-bearing debt

FY2019Forecasts

FY2022
Forecasts¥105.2billion ¥110.0billion¥110.0billion¥120.0billion¥160.8billion ¥168.0billion¥180.0billion¥200.0billion¥866.8billion ¥900.0billion¥1,070.0billion－

FY2026(The company wehope to be)

Interest-bearing debt
/EBITDA ratio

5.4times

5.4times

5.9times

between 5 and6timesD/E ratio※2

1.0times

1.0times

1.0times－¥66.4billion¥70.0billion¥70.0billion

－

8.2%

8.1%

7%

－

¥837.9billion ¥875.0billion¥1,045.0billion－

5.8times－

Net income attributable toowners of the parent

ROE(Reference)
Net interest-bearing
debt※3
Net interest-bearing
debt/EBITDA ratio

5.2times

5.2times※1 EBITDA=operating income + depreciation expenses + amortisation of goodwill※2 D/E ratio＝interest-bearing debt / equity※3 Net interest-bearing debt=interest-bearing debt - cash and deposits

45

Ⅳ.Others②Key Strategies

46

Schedule for the Main Projects of the Business Strategies① and ②（FY）
Kita-Osaka Kyuko Railway Line
Extension Project

Umeda 1-1 Project
Chayamachi 17-banchi project
Extension of Ebista Nishinomiya,a commercial facility adjacent toHanshin Nishinomiya

Strategy

Hankyu Nishinomiya Gardens /Gate building
Fukushima 5-Chome and 7Chome joint development
project
Ebie 1-chome development plan

① New hotel location in Yodobashi
Umeda Tower (tentative name)
Project to relocate Takarazuka
Hotel
Project to construct Saito Moegi
Distribution Centre (provisional
name)

2018

2019

2020

2021

2022

●Complete phase

Strategy②

Redevelopment Project for Area
in Front of JR Yotsuya Sta.
Ginza 3-chome Project2025●Complete phase Ⅱ construction(All construction to be completed by spring 2022)

I construction
Commencement of phase II●Opened● Scheduled start of service● Scheduled start of service● Scheduled start of service●(Scheduled time of condominium completion)● Scheduled start of service● Scheduled start of service●Completion of construction work in B zone
●Completion of construction work in A zone
●Scheduled time of construction completion●

Umekita Phase II Development
Project

Kyobashi 2-6 Redevelopment
Plan

2024

●Intended start of service

Project to rebuild Kobe Hankyu
Building’s east wing and renew
its west wing

Project to open remm+ Ginza

2023

Scheduled time of advance openings● Scheduled start of service●Scheduled start of service●Scheduled time of construction completion●Scheduled time of construction completion
47

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas①

Kita-Osaka Kyuko Railway Line Extension Project【Development plan summary】
・Extension distance:

Shin-Minoh
Sta.
(provisional
name)

2.5 km, from Senri-Chuo Sta. to Shin-Minoh Sta. (provisional name)・New stations:

Approx.
1.1km

Minoh-Semba Sta. (provisional name), Shin-Minoh Sta. (provisional name)
Act on Rail Tracks

National Route
171

・Estimated project cost: ¥65.0 billion
・Demand: 45,000 people per day【Business scheme】
・Developer:

Kita-Osaka Kyuko Railway Co., Ltd. and Minoh City (development of infrastructuralcomponents between Minoh-Semba Sta. and Shin-Minoh Sta.)・Operator: Kita-Osaka Kyuko Railway Co., Ltd.
・Funding programme: Social capital development grant・Portion to be borne by Kita-Osaka Kyuko Railway Co., Ltd:

Minoh
Semba Sta.
(provisionalname)¥11.0 billion; Amount commensurate with profits(including the increase in demand associated with related community development)【Schedule】

December, 2015: We have obtained a license for railway business and a

National Route 423（Shin-midosuji）

SenriChuo
Sta.

charter for railway track operations
Railway Business Act

Approx.
1.4km

December, 2016: Commencement of construction
End of FY2021: Intended start of service
SenriChuo
Sta.

Approx. 1.4km

Underground section

Minoh
Semba Sta.
(provisional
nameApprox. 1.1km

Shin-Minoh
Sta.
(provisional
name)

National Route 423 Elevated section National
Route 171 48(Shin-midosuji）

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas②

Umeda 1-1 Project (Name of the building：Osaka Umeda Twin Towers South)【Project summary】
Location

1-1 Umeda, Kita-ku, Osaka

Site area

Approx. 12,200 ㎡*

Total floor space

Approx. 260,000 ㎡

Number of floors

38 floors above ground and 3 below groundPurposePlanned total
investment
Construction
completion【Conceptual illustration of the building exterior】

Department store, offices, halls, etc.
¥89.7 billion
Spring 2022

* Including 750㎡ of road between Dai Hanshin Building and Shin Hankyu Building【Schedule】
July 2015

Begin phase I construction

April 2018

Complete phase I construction* (Shin Hankyu
Building and Dai Hanshin Building East Wing)

June 2018

Partial opening of new department store.
Phase II (west wing of Dai Hanshin Building):
Start demolition work

Spring 2019

Phase Ⅱ (begin phase Ⅱ construction)

Autumn 2021

Complete phase II construction (newdepartment store part) and fully open new
department store

Spring 2022

Complete all construction and open offices* The project is scheduled to be completed in spring 2022. In that year, Umeda Hankyu
Building, which houses Hankyu Department Store (Hankyu Umeda Main Store), will berenamed ‘Osaka Umeda Twin Towers North’, and the two adjacent buildings will bechristened the ‘Osaka Umeda Twin Towers’.

【Phase I】【Phase Ⅱ】

4
2
1

3

5

①Dai Hanshin Building East Wing(under construction)②Shin Hankyu Building(under construction)③Dai Hanshin Building West Wing(businesses operating)④Dai Hanshin Building West Wing(under construction)⑤Phase I (businesses operating)After Phase I is over, the rentable area will be smaller than thepresent area (west wing of Dai Hanshin Building).

49

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas③
In order of
opening date

Chayamachi 17-banchi project

Extension of Ebista
Nishinomiya, a commercial
facility adjacent to Hanshin
Nishinomiya

Nishinomiya Kitaguchi
Hankyu Building (Provisional
Name) Construction Project

Location

Chayamachi, Kita-ku, Osaka

Wajocho,Tanakacho,
Nishinomiya, Hyogo

Takamatsucho, Nishinomiya,
Hyogo

Site area

Approx. 440㎡

Approx. 5,700㎡（Extended area）

Approx. 3,000 ㎡

Total floor
space

Approx. 2,800㎡

Approx. 10,000㎡（Extended area）

Approx. 11,600 ㎡

Number offloors

8 floors above ground and 1
3 floors above groundbelow ground

10 floors above ground and1 below ground

Commercial facilities(global flagship store
Commercial facilities「MIZUNO OSAKA CHAYAMACHI」)

Commercial facilities,
service facilities foreducation and childcare

April 2018

November 2018

PurposeScheduled
opening

October 201850

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas④
In order of
opening date

Fukushima 5-Chomeand 7-Chome joint
development project

Ebie 1-Chome
Development Plan

Project to relocate
Takarazuka Hotel

Plan site

Location

5-chome Fukushima,
Fukushima-ku, Osaka

1-chome Ebie, Fukushimaku, Osaka

1-chome Sakaemachi,
Takarazuka, Hyogo

Site area

Approx. 2,600㎡(※)

Approx. 27,900㎡(※)

Approx. 12,300㎡

Total floor
space

Approx. 11,000㎡(※)

Number offloors

12 floors above ground and1 below ground

Approx. 52,200㎡(※)
Approx. 23,000㎡（condominium）
20 floors above ground
5 floors above ground and 1（condominium）
below groundNumber of units:566units(※)

Purposehotel(expected to be Hotel
Hanshin Annex Osaka),
supermarket(expected to be
Hankyu Oasis)condominium(Geo Fukushima
Noda The Marks),
commercial facilities（land tolet）rooms (Approx. 200rooms)
party hall (4 halls)
restaurant (4 facilities)

Scheduled
opening

May 2019

Around autumn 2019

(time of hotel opening)(Scheduled time of condominium completion)

Around spring 2020※：Includes the portion belonging to our partner. 51

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas⑤
In order of
opening date

Project to rebuild Kobe
Project to construct Saito Moegi
Hankyu Building’s east wingDistribution Centre (provisional name)and renew its west wing
A zoneB zoneLocationIn the Sanroku Line area of the eastern section of Ibaraki
City’s International Culture Park ‘Saito’

4-chome Kanocho, Chuo-ku, Kobe

Site area

A zone：Approx. 51,000㎡(※)
B zone：Approx. 16,000㎡(※)

Approx. 7,100㎡

Total floor
space

A zone：Approx. 125,000㎡(※)
B zone：Approx. 32,000㎡(※)

Approx. 33,300㎡

Number offloors

A zone：6 floors above groundB zone：4 floors above groundlogistics facilities

PurposeScheduled
opening

East wing：29 floors above ground and 3
below groundWest wing：1 floor under railway station(some sections with 2 floors above ground /basement level)（A zone：multitenant logistics facility［High-tech facilities designed to be used by multiple tenants］、
B zone：BTS logistics facility［Facilities built to suit a particular tenant’s specifications］）

hotel(expected to be Hankyu Hanshin
Hotels-operated hotel), offices, commercial
facilities, railway station

A zone：FY2022(scheduled completion)
B zone：FY2021(scheduled completion)

Around spring 2021
(scheduled completion)※：Includes the portion belonging to our partner. 52

Strategy②:Accumulate stock in the Tokyo metropolitan area and overseas markets①

Project to open remm+ Ginza【Project Outline】· In winter 2019, remm will open the first of its new brand of hotels, ‘remm+’, in Ginza, Tokyo.

(remm+） Building on remm’s existing brand concept, remm+ offers
an extra level of comfort and class.
◆Room size: 18 m2 double room (standard remm: 15 m2 single room)◆Bed width: 1,600 mm (standard remm: 1,400 mm) ◆Furnishings: Upgraded
Conceptual
illustration of
the building
exterior【Outline of facility】
Location

8-5-4 Ginza, Chuo-ku, Tokyo

Site area

Hotel portion:Approx. 8,200㎡

Floor
composition

Hotel portion 2nd floor: lobby, 3rd ～16th floor: guest rooms

Number ofrooms

238rooms (double：154rooms , twin：84 rooms)【Plan for opening new-stylebusiness hotel location】【Location】

・April, 2019： Kyobashi, Tokyo［Please see page 54］
GinzastationPlan site

・May, 2019：Fukushima, Osaka［Please see page 51］
・Around spring, 2021：
Kobe, Sannomiya［Please see page 52］

Shimbashi
station53

Strategy②:Accumulate stock in the Tokyo metropolitan area and overseas markets②
In order of
opening date

Kyobashi 2-6
Redevelopment Plan

Yotsuya Station
District Redevelopment
Project

Ginza 3-chome Project※1

Location
Site area
Total floor
space

2-chome Kyobashi, Chuo-ku, 1-chome Yotsuya, ShinjukuTokyoku, Tokyo
Approx. 1,450㎡(※2)
Approx. 17,900㎡(※2)

3-chome Ginza, Chuo-ku,
TokyoApprox. 310㎡

Approx. 17,000㎡(※2)

Approx. 2,900㎡

Approx. 139,600㎡(※2)

Number of 14 floors above ground and 1 31 floors above ground and 3 11 floors above ground and 1
floorsbelow groundbelow groundbelow groundPurposeoffice, commercial facilities,
hotel(remm Tokyo Kyobashi),residence, educationalcommercial facilities
office, commercial facilities
services, public good, parking

Scheduled
opening

April 2019

Around early 2020

Around spring 2020

(time of hotel opening)(scheduled completion)(scheduled completion)※1：Image of completed construction, provided by the Urban Renaissance Agency (September 2016)※2：Includes the portion belonging to our partner.
54

Strategy③:Increase competitiveness of flow businesses①
Real estate sales business in domestic markets【Real estate sales[lands and housing] 】· Continue to develop and strengthen the urban detached house businessas a pillar of the residential real estate sales business.
· In addition to sales performance, make efforts to enable steady businessexpansion in the Tokyo metropolitan area.
· Focus long-term residential development efforts on Takarazuka Yamatedai［Hapia Garden［Hapia Garden
district and International Culture Park ‘Saito’.
Kobe Takamaru］
Tamagawa Gakuenmae］【 Real estate sales[condominium] 】(Houses on sale from October 2018) (Scheduled to be sold in January, 2019)· Continue to use strict criteria for selecting properties to acquire. Advance business steadily while carefully monitoring
the impacts of the consumption tax hike and the high level of construction expenses.
· In the Tokyo metropolitan area, strengthen the system for acquiring land and gradually expand business, bringing thenumber detached house sales to the level of those in the Kinki area (approximately 800 units a year).
· Leveraging existing planning and proposal capacities, engage additionally in medium-to-long term large-scale
projects (such as urban redevelopment projects).

Total number of units
FY2009Number of Units※1

916

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018

1,064

680

1,210

1,548

1,356

1,374

1,302

1,087

1,159

Major properties to be sold in fiscal 2019※2

FY2019forecast
approx.

1,150

・Geo Hankyu Minase Heart Square (Mishima-gun,Osaka) 315units
・Geo Kyoto Katsuragawa（Minami-ku,Kyoto）98units
・Geo Takarazuka Minamiguchi（Takarazuka,Hyogo）64units
・Geo Shinjuku Wakamatsu-cho (Shinjuku-ku, Tokyo)123units
・Geo Chiyoda Otemachi (Chioyoda-ku, Tokyo)57units
・Geo Motoakasaka (Minato-ku, Tokyo)22 units※1：Figures include units in shared buildings that the Group partly owns.
［Geo Shinjuku Wakamatsu-cho］ ［Geo Hankyu Minase※2：Figures indicate total number of units.
(Condominiums on sale from May 2018)
Heart Square］(Scheduled to be sold in November 2018)55

Strategy③:Increase competitiveness of flow businesses②
Real estate sales business in overseas markets· To help our real estate sales business achieve a certain level of profitability in overseas markets as
early as possible, we will accelerate efforts to promote our residential real estate sales business in
ASEAN states.
［Thailand］［タイ］〇Joint project by SENA Development Public
Co.
・Niche Mono Sukhumvit-Bearing(condominium:Total 1,275 units)
・Niche Pride Taopoon Interchange(condominium:Total 742 units)
・PITI Ekkamai(condominium:Total 879 units)
・Niche Mono Mega Space Bangna（condominium：Total approx. 790 units）
・Niche Mono Charoen Nakorn（condominium：Total 537units）
・PITI Bangchak（condominium：Total approx. 170units）
・Niche Mono Ramkhamhaeng（condominium：Total approx. 1,710units）［Indonesia］［インドネシア〇Joint project by Sinarmas Land Ltd. andothers・ The Zola (house：total 543 units）（Residential complex with shops：Total 158units）〇Joint project by Sumitomo Corporation
Co. and PT Sentul City Tbk.
・Opus Park
(condominium:Total 1,095units)［Vietnam］〇Joint project by NAM LONG INVESTMENT Co.
and Nishi-Nippon Railroad Co.
・FLORA-ANH DAO-(condominium:Total 500 units)
・FUJI RESIDENCE (condominium:Total 789units)(house:Total 84 units)
・FLORA -KIKYO- (condominium: Total 234 units)
・MIZUKI PARK
(condominium:Total approx. 4,670 units)(house:Total approx. 100 units)(townhouse:Total approx. 60 units)
・AKARI CITY
(condominium:Total approx. 4,600 units)［Philippines］［〇Joint project by P.A. ALVAREZ PROPERTIESAND DEVELOPMENT Co.
・Ideshia Dasmariñas(house:Total 456 units)(townhouse:Total 463 units)［Malaysia］〇Joint project by Ireka Co.
・RIMBUN KASIA(condominium:Total approx. 850 units)

56

Strategy③:Increase competitiveness of flow businesses③
Information services business· The market for the information services business is expected to expand significantly.
Accordingly, to help the business grow, we will make maximal use of our expertise andunique model to expand our market share and develop new business fields.

① Focus on promising fields


Fully leveraging our well-honed multi-vendor solutions※1 and one-stop services※2, we will
accelerate efforts to develop business in promising fields, such as building maintenance,transport systems, and Internet solutions, and thus increase our market share.
※1:This refers to our ability to combine products from different companies to create efficient systems.
※2:This refers to our spectrum of services from system development to operation/monitoring/maintenance.

②Extend business operations in Kanto and Chubu area

Building on our track record of providing solutions in the Kansai area, we will step up efforts
to expand business in the Kanto area (a larger market) while also making inroads in the
Chubu area.

③Use cutting-edge technology to promote new businessesRegarding pioneering technologies like AI and IoT as opportunities, we will actively
incorporate technologies from outside (such as by partnering with venture businesses)
where we lack the necessary technologies ourselves, and use the technologies to develop
new solutions services.
57

Strategy③:Increase competitiveness of flow businesses④
Travel business· In the Travel Business segment, we have until now achieved steady earnings with a lineup centred on core brandtravel packages. However, recent changes in the environment (e.g. global instability, natural disasters, and thedeterioration in the travel product procurement environment associated with the rising numbers of overseas visitors
to Japan) are having a significant impact on business, and we expect that competition will intensify in the years
ahead.
· Accordingly, starting in fiscal 2018, we are reforming the business structure with the intention of further
strengthening our core brand travel packages and establishing alongside this a second pillar—future-oriented
business—as early as possible.

Never resting on our laurels, we will continue to embrace change andPrinciple improve our products even further to create travel products thatreflect customer feedback and ensure we are a company society needs.
Strengthen competitiveness of core
brand travel packages○Strengthen areas outside Europe
・Taiwan, America, Canada, Latin America, Domestic bus
tours○Strengthen Specialised products
・Tours specialise in specific purpose(cruise, oversea and domestic hiking tour, etc.)○Expand customer base among new
demographics
・Strengthen individual-oriented products○Revise cost structure for advertisingexpenses, etc.
・ Overhaul advertising expenditure rates

Establish a second pillar○Strengthen approach to nonJapanese tourists○Expand group and business travel
services and create stable source ofrevenue
・Group travel services：Strengthen services in the Tokyo metropolitan area
and increase the number of sales representatives

・Business travel services： Invest in human resources (train global workforce)and Strengthen digitization
58

Strategy③:Increase competitiveness of flow businesses⑤
International transportation business【 Basic strategy for achieving growth 】• Shift toward a more balanced business portfolio (strengthen ocean transportation and logistics operations)• Promote Asia-centred business development (shift away from the focus on Japan as origin/destination for shipments)• Expand investments in growing markets (e.g. Africa)

Capital tie-up / joint venture with Seino
Holdings （April 2018）

Under the joint venture, the two companies will augment each other’soperations in and out of Japan and thus provide new distribution
services to customers.
① Under the joint venture, Seino Holdings’ domestic distribution
network and logistics capacity will be combined with Hankyu Hanshin
Express (HEX)’s global distribution network digital, and the twocompanies will work together in digital information initiatives. In thisway, the venture will help deliver supply chain management solutions
tailored to each customer’s needs.
② It will also help develop and deliver new logistics services (customer
agency services related to ordering and trade settlement,
temperature-controlled transport, etc.)【Specific Initiative】
HEX will take out a lease on a warehouse space within Seino
Transportation’s new logistics centre nearby Narita International
Airport, and move there from its present location in Hankyu
Hanshin’s Narita Cargo Terminal (Shibayama, Sanbu District, Chiba
Prefecture) in the early summer of 2019. Because the new logistics
centre adjoins Seino Transportation’s truck terminal, it will help HEX
provide logistics services with reduced lead times for cargo
shipments and greater convenience. HEX will use the first floor of
the warehouse space to strengthen its logistics services.

基本方針

Warehouse space

Seino
Transportation’struck terminal

Location

Sanrizuka Narita Chiba

Warehouse
space
specifications（Total floor
space）

Ground floor：Cargo
handling area,
Refrigerator, Freezer（approx. 14,200㎡）
First floor：Logistics
warehouse（approx. 12,400㎡）

Investment in freight forwarder, Intraspeed
South Africa (Proprietary) Limited, and its
acquisition as a subsidiary （April 2018）
To capitalize on the long-term growth expected in Africa,
we intend to accelerate business in the continent andsecure a strong operating base there.
●The acquisition will serve as a bridgehead in the
African market from which we will aim to:① Expand our African networks② Offer solutions to Japanese companies with African
logistics needs while simultaneously expanding sales
channels among Intraspeed’s main clients (nonJapanese companies); this will produce a synergistic
effect※ The ground floor will serve as a cross-docking area
(i.e., for unloading materials from incoming vehicles andloading them onto outbound vehicles). The first floor
will be used in part as a logistics centre.

【Outline of investee】
Company
nameIntraspeed South Africa(Proprietary) Limited

Location

Johannesburg, South Africa

Establishment

February 1999

※ Following the investment, we acquired two other Africancompanies (one in Kenya and one in Uganda) owned by
Intraspeed.

59

Ⅴ. Referential Materials

60Consolidated Subsidiaries(As of September 30, 2018)
Urban Transportation
Railway
Hankyu Corporation
operations
Hanshin Electric Railway
Nose Electric Railway
Kita-Osaka Kyuko Railway
Hokushin Kyuko Railway
Kobe Rapid Transit Railway
Hankyu Hanshin Electric System
Hankyu Railway Service
Automobile
Hankyu Bus
Hanshin Bus
Hankyu Kanko Bus
Hankyu Denen Bus
Hankyu Commuterbus Management

Omtec
Osaka Airport Transport
Hankyu Taxi
Hanshin Taxi
Osaka Hanshin Taxi
Hankyu Hanshin Motor Technology
Hankyu Driving School Hattori Ryokuchi

Haks Hanshin
Retailing
Advertising
Other

Eki Retail Service Hankyu Hanshin

Hankyu Style Labels
Hankyu Advertising Agency
Alna Sharyo
Hankyu Sekkei Consultant
Hanshin Station Net
Hanshin Sharyo MaintenanceReal Estate
Real estate

Hankyu Hanshin Properties
leasing and sales Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin Estate Service
Osaka Diamond Chikagai
Hankyu Hanshin Building Management
Other
Hankyu Hanshin High Security Service

Hankyu Hanshin Clean Service
Hankyu Hanshin REIT Asset Management
Hankyu Hanshin Real Estate Investment Advisors

Hankyu Hanshin Housing Support

KyokutoEntertainment and Communications
SportsHanshin Electric Railway
Hanshin Tigers Baseball Club
Hanshin Contents Link Corporation

Wellness Hanshin
P & P Hamamatsu
Stage
Hankyu Corporation
Takarazuka Creative Arts
Takarazuka Stage
Umeda Arts TheaterCommunication Bay Communications
and media Hanshin Cable Engineering
Leisure, etc.
Itec Hankyu Hanshin
System Giken
Mt. Rokko Cable Car & Tourism
YMIRLINK
Himeji Cable Television
RworksMimamorume

TravelTravel agency

Hankyu Travel International
Hankyu Hanshin Business Travel
Hankyu Travel Support
Hanshin Travel International
International Transportation
International
Hankyu Hanshin Express
transportation Hankyu Hanshin Logipartners
HANKYU HANSHIN EXPRESS(USA, UK, NETHERLANDS, SINGAPORE
DEUTSCHLAND,HONG KONG,
THAILAND,PHILIPPINES, MALAYSIA,VIETNAM,SHANGHAI,GUANGZHOU,BEIJING,TAIWAN, KOREA,INDIA,
INDONESIA, Southeast Asia, HANKYU
INTERNATIONAL LOGISTICS SHANGHAI,:19Companies）
HotelsHotel
Hankyu Hanshin Hotels
management Hanshin Hotel Systems
Hankyu Hanshin Restaurants
Arima View Hotel
Amanohashidate Hotel
Kure Hankyu Hotel【Legend】
Name of segment
Name of
Name of consolidated subsidiary(Only listed companies that are
sub-segment
managed as segment)61

Revenues from Operations and operating income as a FY2018
management composition

earnings structure(As of April 1, 2018)

Hankyu Hanshin Holdings
HotelsInternational
Transportation

TravelHanshin Electric
Railway※

Real EstateEntertainment andCommunications

Urban
Transportation

HankyuCorporation※ The Urban Transportation and Real Estate businesses

generate stable cash flows and account for
approximately 60% of revenues from operations and
80% of operating income.
Revenues from operations breakdown(FY2018)
Consolidated Total

Operations¥760.3billion

Operating Income¥105.2billion

Operating income margin

Hotels
Revenues from

Revenues from Operations

Urban Transportation¥67.2billion

Operating Income¥2.2billion

Operating income
margin3.3%

International
Transportation
Hankyu Hankyu
TravelHanshin
Properties International

HankyuHanshin
Express

HankyuHanshinHotels

Revenues fromoperations¥83.7billion

Operating income¥2.8billion

Operating income
margin3.3%※ In the Umeda and line-side areas, Hankyu
Corporation and Hanshin Electric Railway will retain
their real estate for leasing and developing and workwith Hankyu Hanshin Properties to promote community
building efforts in connection with public transport
networks and local governments.

¥34.0billion

Operating Income¥2.1billion

Operating income
margin

6.2%

Revenues fromOperations¥236.0billion

Operating Income¥41.6billion

Operating income
margin17.6%

Real Estate

TravelRevenues fromOperations

13.8%

Revenues fromOperations¥222.6billion

Operating Income¥41.0billion

Operating income
margin18.4%

Entertainment & Communications
Revenues fromOperations¥121.1billion

Operating Income¥17.8billion

Operating income
margin14.7%

62

Areas served by the Hankyu and Hanshin lines①
Definition of the areas served by the Hankyu and Hanshin lines
Osaka Prefecture:
Osaka City (Fukushima, Konohana, Nishi, Naniwa, Nishi-Yodogawa, Higashi-Yodogawa,
Yodogawa, Kita and Chuo, out of a total of 24 wards); and Toyonaka, Ikeda, Suita, Takatsuki,
Ibaraki, Minoh, Settsu cities and Shimamoto town
Hyogo Prefecture:
Kobe City (Higashi-Nada, Nada, Hyogo, Nagata and Chuo, out of a total of 9 wards); andAmagasaki, Nishinomiya, Ashiya, Itami, Takarazuka and Kawanishi cities
Kyoto Prefecture:
Kyoto City (Nakagyo, Shimogyo, Ukyo, Nishikyo, out of a total of 11 wards); and Muko andNagaokakyo cities and Oyamazaki town

63

Areas served by the Hankyu and Hanshin lines②
Population Trends

Sources: Prepared by the Company based on data from “Local Economy Directory,” published by Toyo Keizai, Inc.,and “Basic Resident Register,” published by the Ministry of Internal Affairs and Communications.
（k㎡） (thousand)
Area

Population

Areas served by the Hankyu/Hanshin
line

1,318

5,609

Osaka Pref. (service areas)

449

2,672

Hyogo Pref. (service areas)

471

2,269

Kyoto Pref. (service areas)

398

668

Non-Hankyu/Hanshin Service Areas

26,033

14,737

Osaka Pref. (non-service areas)

1,456

5,960

Hyogo Pref. (non-service areas

7,930

3,217

Kyoto Pref. (non-service areas)

4,214

1,838

Shiga Pref.

4,017

1,393

Nara Pref.

3,691

1,360

Wakayama Pref.

4,725

969

27,351

20,346

Total

108.0

Areas served by the Hankyu and Hanshin lines
Kansai
Osaka Pref.
Hyogo Pref.
Kyoto Pref.

106.0
104.0

（1991=100）

102.0
100.0
98.0
96.0

Survey of prospective condominium purchasers regarding
their preferred Kansai residential area
Ranking Station（Area）

Ranking Station（Area）

11

Ashiya（Ashiya, Hyogo Pref.）1

Nishinomiya-kitaguchi（Nishinomiya, Hyogo Pref.）2

Shukugawa（Nishinomiya, Hyogo Pref.）12

Tennoji（Osaka, Osaka Pref.）

3

Umeda

（Osaka, Osaka Pref.）

13

Kobe

（Kobe, Hyogo Pref.）4

Okamoto（Kobe, Hyogo Pref.）14

Fukushima（Osaka, Osaka Pref.）5

Takarazuka（Takarazuka, Hyogo Pref.）15

Hommachi（Osaka, Osaka Pref.）

6

Esaka

（Suita, Osaka Pref.）16

Kobe-sannomiya（Kobe, Hyogo Pref.）7

Senri-Chuo（Toyonaka, Osaka Pref.）17

Toyonaka（Toyonaka, Osaka Pref.）8

Ashiyagawa（Ashiya, Hyogo Pref.）17

Karasumaoike（Kyoto, Kyoto Pref.）

9

Osaka

（Osaka, Osaka Pref.）19

Kurakuenguchi（Nishinomiya, Hyogo Pref.）10

Mikage（Kobe, Hyogo Pref.）20

Yodoyabashi（Osaka, Osaka Pref.）Except for Tennoji (12),Hommachi (15), andYodoyabashi (20), all of
the top 20 stations areon Hankyu Hanshin
Holdings group lines

Source: A survey of prospective condominium purchasers regarding their preferredresidential area, conducted by seven major real estate developers (Sumitomo Realty& Development Co., Ltd., Daikyo Incorporated, Tokyu Land Corporation, Tokyo Tatemono Co., Ltd., Nomura Real Estate Development Co., Ltd., Mitsui Fudosan
Residential Co., Ltd., and Mitsubishi Jisho Residence Co., Ltd.) and included in a press release dated September 27,2018.

64

Overview of Umeda area①
Major rental properties
Property nameLeasable area
(1,000㎡) ※1

Umeda Hankyu Bldg.
(Hankyu Dept.Store・
office tower)
Umeda Hanshin
Daiichi Bldg.
(HERBIS OSAKA)
Osaka Umeda Twin
Towers South
Umeda Hanshin Daini
Bldg.
(HERBIS ENT)
Hankyu Chayamachi
Bldg.
(Applause Tower)
Hankyu Sanban Gai
Shopping Centre
Hankyu Grand Bldg.

GRAND FRONT OSAKA
Hankyu Terminal Bldg.
Hankyu Five Bldg.※2(HEP FIVE)（as of September, 2018)
Number of floors

Completed213

41 floors above groundand 2 below ground

2012

82

40 floors above groundand 5 below ground1997

13 flooes above
58 ground and 3 floors
below ground

2018

55

28 floors above groundand 4 below ground

2004

52

34 floors above groundand 3 below ground1992

5 floors above groundand 2 below ground
32 floors above ground36
and 3 below ground
38 floors above ground28
and 3 below ground
18 floors above ground27
and 4 below ground
10 floors above ground20
and 3 below ground
39

1969
1977

2013
1972
1998

10 floors above ground1980
and 2 below ground
9 floors above ground
NU chayamachi
122005
and 2 below ground※1：Leasable area does not include areas for public use※2：Jointly owned property with Hankyu Hanshin REIT Asset Management
NAVIO Hankyu(HEP NAVIO)

16

Developments in Umeda district(red = Hankyu Hanshin Holdings group related Projects)① Umeda 1-1 Project (Osaka Umeda Twin Towers South)② Umekita Phase Ⅱ Development Project③(Provisional Name) Yodobashi Umeda Tower-Yodobashi Camera Co., Ltd.

④ (Provisional Name) Umeda 3-chome Project- Japan Post Holdings Co. Ltd.,/Osaka Terminal Building Co., Ltd.

⑤ (Provisional Name) Umeda Sonezaki Project-Sumitomo Realty & development Co., Ltd.
⑥ Chayamachi B-2 District Redevelopment Project-TOKYU LAND CORPORATION Co., Ltd.

65

Overview of Umeda area②
Trends in rent amongsix main business districts in Osaka

Trends in average vacancy rates amongsix main business districts in Osaka（%）（¥/3.3㎡）
22,00014.00
20,00012.00
18,00010.00

16,0008.00

14,000

6.00
4.00

12,0002.00

10,000

0.00

2013

2014

2015

2016

Osaka business areas (all)Minamimorimachi area
Senba area
Shinosaka area

2017

2018

8,000

2013

Umeda area
Yodoyabashi-Honmachi area
Shinsaibashi-Namba area
Tokyo business areas (all)

(%)

2013

Osaka business areas (all)9.79

Umeda area

2015

2016

(¥/3.3㎡)

2013

2017

2018

Umeda area
Yodoyabashi-Honmachi area
Shinsaibashi-Namba area
Tokyo business areas (all)
2014

2015

2016

2017

2018

2015

2016

2017

2018

8.14

8.12

5.79

3.83

2.93 Osaka business areas (all)11,271 11,120 11,135 11,061 11,187 11,398

9.47

7.67

6.76

4.33

2.38

1.63 Umeda area

14,402 13,977 14,189 14,210 14,487 14,863

Minamimorimachi area

8.40

5.79

5.45

6.33

5.77

5.17 Minamimorimachi area

9,690

Yodoyabashi-Honmachi area

9.58

8.46

9.37

6.02

3.91

2.73

Yodoyabashi-Honmachi area

11,054 11,009 10,976 10,891 10,994 11,149

13.20

10.86 10.22

7.79

6.11

4.52

Senba area

Shinsaibashi-Namba area

7.22

5.35

8.77

8.33

3.39

4.75 Shinsaibashi-Namba area

12,361 12,312 12,110 11,833 11,725 11,865

Shinosaka area

8.41

7.22

6.64

5.46

4.38

3.59 Shinosaka area

10,219 10,143 10,113 10,152 10,140 10,273

Tokyo business areas (all)

7.90

5.65

4.53

3.70

3.17

2.33 Tokyo business areas (all)16,230 16,805 17,594 18,336 18,995 20,438

Senba area

2014

2014

Osaka business areas (all)Minamimorimachi area
Senba area
Shinosaka area

9,810

9,446
9,651

9,376
9,663

9,291
9,521

9,249 9,357
9,717 9,932(Comparison of average rents in September of respective years)
Source: Miki Shoji, “Office Data.”

66

Progress on the Development of International Culture Park ‘Saito’ (a new town)• Since the opening of the western area of Saito in Spring 2004, progress has been made in developing residential
facilities and attracting commercial tenants in the western area. Saito has developed into a new town, with aresidential population of 15,000 and a facility population of 3,500.
• In Spring 2016, the central area was opened up for common use. Since then, the area has become home to anincreasing number of facilities, including large distribution centres, and the facility population has risen to around2,500.
• As for the eastern area, in February 2015, Ibaraki City altered the plan for prior areas (Sanroku Line area andcentral-east area). In May of the same year, the Group received permission to conduct development operations in
the Sanroku Line area, and it commenced operations in November. Location-wise, the area is ideal for facilities suchas distribution centres and production/processing centres. Accordingly, the area was designated as land for largescale commercial use. Land forming work is underway with a view to opening up part of the area in fiscal 2019.
Residential population in western area
（as of September,2018）

茨木千提寺IC
Ibaraki-SendaijiIC
2017年11月開業予定

Minoh
City

Ibarakicity

Number ofhouseholds

2,124

2,982

5,106

Current
population

6,566

8,906

15,472

population/
Number ofhouseholds

3.09

2.99

3.03

Shin-Meishin Expressway

Saito

中央東エリアcentral-east area

SanrokuLine area
山麓線エリア（仮称）
新箕面駅（仮称）
新箕面駅

Total

（仮称）
箕面船場駅（仮称）箕面船場駅

Size of each area

Size

Western
area

Centralarea

Easternarea

312.6ha62.5ha367.5ha67

Global network（International Transportation）【Initiatives of International Transportation Business】
・ Strengthening the logistics business・ Expanding global network
・ Expanded group’s network in growth sectors
・ Invested in Africa-based agency

・ Expanded group-operated logistics centres
・ Expanded existing logistics centres

Number of bases: Japan=49, Overseas=128（as of August 1, 2018）◆Business expansion in North America
In December 2017, we opened a sales office inMonterrey. Situated in the north of Mexico,
Monterrey is a gateway for the Mexico-US auto
trade. We developed our US network in pursuit offurther growth, opening sales offices in Boston,Miami, and New Jersey, and logistics centres in
Chicago, Atlanta, and Dallas.

◆New logistics centres in the ASEAN
region◆Strengthening business development in Africa

Having built a logistics centre in Indonesia in 2016,
in May 2017, we opened a large logistics centre in
Singapore. This logistics centre is the Group’s
largest such facility, and it exploits the significant
advantages that Singapore affords as aninternational logistics hub. With this centre, we
provide high value-added logistics services
focusing on goods related to Singapore’s key
industries, including electrical components,
medical equipment, and pharmaceutical products.
Similarly, in Ho Chi Minh City, Vietnam, weestablished a Group-managed logistics centre.

In April 2018, we invested in Intraspeed in South Africa and acquired the freight forwarder a subsidiary. We
also acquired as subsidiaries two companies owned by Intraspeed (one company is in Kenya and the other isin Uganda). Looking ahead, we will step up our efforts to develop business in Africa.

68

Hotel network of the Hankyu-Hanshin-Daiichi Hotel Group
Directly managed hotels (Hankyu Hanshin Hotels) 18Hotels 4,891 rooms
Other (franchises, etc.)

Directly managed hotels
Dai-ichi Hotel Tokyo
Dai-ichi Hotel Annex
Daiichi Hotel Tokyo Seafort
Kichijoji Dai-ichi Hotelremm HIBIYA
remm AKIHABARA
remm ROPPONGIHotel Hankyu International
Hotel new Hankyu Osaka
Hotel new Hankyu Annex
Hotel Hanshin
Umeda OS hotel ※remm SHIN-OSAKA
Senri Hankyu Hotel
Hotel Hankyu Expo Park
Takarazuka Hotel
Hotel new Hankyu Kyoto
remm KAGOSHIMA

26Hotels 5,353 rooms

44Hotels
10,244rooms（as of October 1, 2018）

Ours Inn Hankyu
Ginza Creston
Dai-ichi Hotel Ryogoku
Dai-ichi Inn Ikebukuro

ホテル所在地Hotellocation

Dai-ichi Inn Shonan
Toyama Dai-ichi Hotel
Dai-ichi Inn Shinminato

Tokyo Dai-ichi Hotel Nishiki
Hotel Boston Plaza Kusatsu
Hotel Royal Hill Fukuchiyama
Amano Hashidate Hotel
Osaka Dai-ichi Hotel
Arima View Hotel urara
Kure Hankyu Hotel

Kyoto,
Osaka,
京阪神
Kobe
10

2

Hotel Ichibata
Tokyo Dai-ichi Hotel Shimonoseki

Takamatsu Kokusai Hotel
JR Hotel Clement Takamatsu
JR Hotel Clement Tokushima

Other(franchises, etc.)

The Crown Palais New Hankyu Kochi

Tokyo Dai-ichi Hotel Iwanuma Resort

Tokyo Dai-ichi Hotel Matsuyama

Tokyo Dai-ichi Hotel Tsuruoka
Tokyo Dai-ichi Hotel Yonezawa

Imabari Kokusai HotelTokyo Dai-ichi Hotel Shin-Shirakawa

Tokyo
東京地区
東京地区

※Hankyu-Hanshin Hotels are entrusted operation

・直営 7

5

・その他4

3

69