Performance Outlook for Fiscal 2015
Revenues from operations and operating income are both expected to decrease slightly due to the start ofconstruction of the Umeda 1-1 Project. However, through ongoing effort to improve our financial position,
we expect to achieve an interest-bearing debt/EBITDA ratio of 6.8 times,
our fiscal 2016 plan value announced in May 2013, one year ahead of schedule.
In fiscal 2015, revenues from operations are expected to decline
1.3%, or ¥9.2 billion, year on year, to ¥670.0 billion and operating income to drop 6.3%, or ¥5.8 billion, to ¥86.0 billion. The
reasons for the projected decline include a downturn in railway
operation revenue caused by last-minute demand for commuter
passes following the consumption tax hike in the previous fiscal
year and a decrease in rental income (rental floor space) due tothe start of construction of the Umeda 1-1 Project (Dai Hanshin
Building and Shin Hankyu Building rebuilding projects). Further,ordinary income declined 5.2%, or ¥4.2 billion, to ¥77.0 billion
and net income dipped 2.9%, or ¥1.4 billion, to ¥45.0 billion,
largely due to an improvement in the financial account balance
resulting from a decrease in interest expenses.
Meanwhile, we plan to continue reducing interest-bearing
debt from the previous fiscal year through an ongoing detailed
review of capital investments, and anticipate interest-bearing
debt of ¥970.0 billion at the end of fiscal 2015. As a result, aninterest-bearing debt/EBITDA ratio of 6.7 times is projected andwe expect to achieve the ratio of 6.8 times, our fiscal 2016 planvalue announced in May 2013, one year ahead of schedule.

Operating Income (Fiscal 2014  Fiscal 2015)
Fiscal 2014 (Results)  Fiscal 2015 (Estimate) –¥5.8 billion● E ffects of last-minute demand (FY2014)-¥5.8 billion¥91.8billion¥86.0billion

FY2014
ResultsFY2015
Estimatefollowing consumption tax increase in railway
business● Decrease in rental income (rental floor space)following start of construction of Umeda 1-1Project● Decrease in condominium income in condominium business● Increase in depreciation and amortisation instage business● Decrease in income from sales of goods / foodand drink in sports business● Increase in office leasing income in real estateleasing business● Recovery in attracting customers for overseas
travel● Factors causing a decrease in operating income● Factors causing an increase in operating income■ Consolidated Performance and Key Performance Indicators during the Medium-Term Management Plan Period(FY)

2008

2009

2010

2011

2012

2013

Operating income (¥ billion)

90.7

77.8

70.1

64.7

73.8

87.9

EBITDA (¥ billion)

145.2

135.3

133.2

127.1

133.5

145.1

Interest-bearing debt (¥ billion)

1,271.1

1,275.6

1,282.6

1,251.7

1,183.6

1,126.6

Interest-bearing debt/EBITDA (times)

8.8

9.4

9.6

9.8

8.9

7.8

ROE (%)

0.1

4.4

2.3

3.8

7.9

7.4

Debt/equity ratio (times)

2.7

2.8

2.7

2.6

2.3

2.0

2014 (Results)

91.8(84.0)
149.2(142.0)1,032.3(1,100.0)
6.9(7.7)
8.0(7.5)
1.7(1.9)2015 (Est.)

86.0
144.0
970.0
6.7
7.2
1.5

Notes: 1. Includes department store business (Hanshin Department Store Group) (treated as a consolidated subsidiary up to the first half of fiscal 2008)
2. Due to a change in the accounting method, consolidated interest-bearing debt from fiscal 2009 and after includes lease obligations
3. EBITDA = operating income + depreciation + amortisation of goodwill
4. Figures shown in parentheses are for the plan announced in May 2013.

2016 (Plan)

82.0(85.0)
141.0(143.0)950.0(980.0)6.7(6.8)
6.8(7.2)
1.4(1.5)

Urban Transportation

TravelIn the Railway Business, because of the extra demand that wasgenerated in the previous fiscal year in advance of the hikein the consumption tax rate and also the decline in passengernumbers in the Automobile Business, we forecast that revenues
from operations will decline 1.9%, or ¥4,400 million year on year,Hankyu Corporation and Hanshin Electric Railway:
Performance Forecasts (Fiscal 2015)■■ Operating income
Operatingincome(¥ billion)

Fare revenues (¥ million)*
FY2015FY2014

Changeto ¥230,200 million. In addition to the factors that will cause
revenues to decline, depreciation and amortisation expenses
and power-related expenses are expected to rise. Therefore, weforecast operating income will decrease 5.2%, or ¥2,000 million
year on year, to ¥36,500 million.

%

Hankyu91,717

92,929–1,212–1.3%

Hanshin

30,981

31,269

–287

–0.9%

Passenger volumes (thousands)*
FY2015FY2014

Change%Hankyu621,260

629,125–7,865–1.3%

Hanshin

223,679

226,004–2,325–1.0%* Sum of tier 1 and tier 2 operators for both Hankyu and Hanshin

50
40

249.3
37.2

Revenues
from operations(¥ billion)

234.6

230.2

38.5

36.5

Revenues
from operations(¥ billion)

34.1

40

33.0

30

2.5
1.8
1.2

100

1050

20
1002013

20

33.3

30200
15020142015(Est.)(FY)

0020142015(Est.)(FY)

International Transportation■■ Operating income
Operatingincome(¥ billion)

50

198.3

40

37.3

Revenues from operations

208.6
38.0

206.3
35.8

Revenues
from operations(¥ billion)

200
160

We expect a moderate recovery in logistics demand among ouroverseas subsidiaries, particularly those in ASEAN and East Asia.
Consequently, we forecast revenues from operations will grow
2.4%, or ¥900 million year on year, to ¥38,600 million, and that
operating income will increase 12.1%, or ¥200 million, to ¥2,300million.

12030
2080

10402014

2015(Est.)■■ Operating income
Operatingincome(¥ billion)

437.7

38.6

Revenues
from operations(¥ billion)

40
30

1.8

2.1

2.3

120
10002013(FY)

Entertainment and Communications

36.7

Revenues from operations

32002013

In the sports business, we expect a decline in revenues fromsales of Hanshin Tigers merchandise and food and drink, as they
performed particularly strongly in the previous year, and therefore forecast that revenues from operations will decline 0.6%, or¥700 million year on year, to ¥109,700 million. Also, in addition
to the above factors causing decreases, we expect an increasein depreciation and amortisation expenses in the stage businessin conjunction with the theatre refurbishment work, and so
are forecasting that operating income will fall 19.6%, or ¥2,800million, to ¥11,400 million.

Revenues from operations

41250

Real Estate* Please refer to P.32 for details of the Umeda 1-1 Project.

■■ Operating income
Operatingincome(¥ billion)

2

Revenues from operations

302013In the real estate leasing business, while we expect an increase
in office rental income, we also anticipate that there will be adecline in rental income (from the reduced rental area) due tothe start of construction work of the Umeda 1-1 Project (therebuilding of the Dai Hanshin Building and the Shin HankyuBuilding), and also a reduction in earnings from sales of condominiums within real estate sales business. Consequently, we
forecast revenues from operations will decline 1.1%, or ¥2,300
million year on year, to ¥206,300 million, and operating income
will fall 5.8%, or ¥2,200 million, to ¥35,800 million.

Although we expect a year-on-year decline in domestic travel,
we also anticipate a recovery in overseas travel for tourists visiting Taiwan, Turkey, and Egypt. So we forecast revenues fromoperations will increase 0.9%, or ¥300 million year on year, to¥33,300 million, and operating income will rise 47.1%, or ¥600
million, to ¥1,800 million.

2014

2015
(Est.)(FY)

Hotels■■ Operating income
Operatingincome(¥ billion)

20

102.7
15
10

Revenues from operations
Revenues
from operations(¥ billion)

110.4

109.7

90

14.2
11.4

11.2

120

5

60
30

0020132014

2015(Est.)(FY)

Continuing on from the previous fiscal year, we expect inbounddemand to increase for hotels specialising in lodging services.
Therefore, we forecast revenues from operations will increase
0.9%, or ¥600 million year on year, to ¥64,300 million. Also, inaddition to the above-described factors that are expected toincrease revenues, we expect that the elimination of unprofitable businesses in the previous year will contribute and so are
forecasting that operating income will rise 23.6%, or ¥200 million,to ¥1,000 million.

■■ Operating income
Operatingincome(¥ billion)

Revenues from operations
Revenuesfrom operations(¥ billion)

1.5

64.775

63.7

64.3
1.0

1.0

50

0.8
0.5

0.5

25

0020132014

2015(Est.)(FY)