Hankyu Hanshin Holdings Group
Results Briefing Materials for Fiscal 2021
(fiscal year ended 31st March 2021)

May 21, 2021
Hankyu Hanshin Holdings, Inc.
9042 https://www.hankyu-hanshin.co.jp/en/

Contents
Ⅰ. Performance Highlights for Fiscal 2021
(fiscal year ended 31st March 2021)･･･

2

Ⅱ. Future Strategy(1) Medium-Term Management Plan and Current Strategy ･･･ 34(2) Update of Long-Term Vision･･･ 49Ⅲ. Forecast for fiscal 2022
(fiscal year ending 31st March 2022) ･･･ 53
Ⅳ. Sustainable Business Practices･･･ 65

Ⅴ. Referential Materials(1) Progress in Each Project(2) Other･･･ 76･･･ 85Business forecasts and other projections herein are based on information available at present and logical assessments and do not
represent any promise by the Company. The actual results may differ significantly from these projections due to various factors.

1

Ⅰ. Performance Highlights for Fiscal 2021
(fiscal year ended 31st March 2021)2

Consolidated Statements of Income(Summary)
FY2021 Results

Consolidated Subsidiaries
Equity-Method Affiliates
Total
COVID-19 impact(¥ billion)

FY2020 Results

Change95 companies 93 companies +2 (4 companies increase, 2 companies decrease)
11 companies 11 companies ±0
106 companies 104 companies +2

FY2021Results

FY2020Results

Revenue from operations-215.2-22.0

Operating income-104.2-15.4(¥ million)

FY2021Results

FY2020Results

Revenue from operations

568,900

762,650 -193,750 (-25.4%)

Operating income

2,066

95,170 -93,103 (-97.8%)

Non-operating income

3,572

7,331 -3,759

Non-operating expenses

13,262

13,706 -443

Ordinary income-7,62388,795 -96,418 (ー)Extraordinary income

13,167

6,038 +7,129

Employment adjustment
subsidies +8,715
COVID-19-related losses+19,382
Structural reform-related loss
+18,618

ChangeExtraordinary loss

46,557

8,086 +38,470

Net income attributable toowners of the parent-36,70254,859 -91,562 (ー)（Reference）

FY2021 Results

FY2020 Results

ChangeDepreciation and amortization

55,73356,542-808

Financial balance ① - ②-7,783-7,718-64

Interest and dividend income①

1,102

1,548

-446

Interest expense②

8,885

9,267

-381

Remarks
For details,
please see next page

Equity in income/loss of affiliates-5,011

Tax expense -36,312

We have applied the note “Audit Consideration related to
COVID-19 Part 4” (JICPA, April 22, 2020) to operations andevents that we suspended/cancelled at the request of
authorities. Specifically, we have recognized as extraordinary
loss all fixed costs incurred during the suspension of said
operations and all costs directly associated with the
preparation and cancellation of said events.

3Consolidated Statements of Income (Breakdown for each business segment)[Key results in current period]
Revenues and income fell significantly with most business segments hit hard by COVID19 (details shown on page 6).
(¥ million)

Revenue from operations

COVID-19 impact-65.3 billion yen

Urban Transportation
Real Estate-27.7 billion yen

Entertainment-36.2 billion yen-5.2
billion yen

FY2020Results

156,926-1.0
billion yen

227,176

FY2021Results

Change-70,250-49.5
billion yen-5,10841,510-12,586

11,695-13,954

5,598

-42

232

-7,630170+2,137-17,927-3,142-14,784-47,686-11.3
billion yen

28,92342,192

74,020-31,828-15.6
billion yen-2,25858,08358,576-492-0.9
billion yen-3.0
billion yen

5,556
-10.0
billion yen-21,805

76,186+9,36619,14560,280-41,135

Other

49,84042,486+7,353

1,881

2,381

-500

Adjustment-43,160-45,887+2,727-3,911-3,332-578

568,900

762,650-193,750

95,170-93,103

International
Transportation
HotelsTotal

85,552-51.0 billion yen-215.2 billion yen-5.2
billion yen-22.0
billion yen-7,397-3.1
billion yen

33,766-28.7 billion yen

11,960-4.7
billion yen

Change-45,164

236,046-4.9
billion yen

FY2020Results
40,056

188,360-4.4
billion yen

Information andCommunication Technology
TravelFY2021Results

Operating income

2,308
-18.5
billion yen-104.2billion yen-3.3
billion yen

2,066
-15.4
billion yen

4Quarterly Consolidated Statements of Income by Segment
From left to right: Q1–Q4 FY2021 (unconsolidated)

Revenue from operations

Total（¥ billion)

62.5
174.9

153.0

43.8
40.8
40.7

129.7
111.3

45.4
42.3
38.2

31.5

14.013.4
11.2

18.7
13.8
13.1
12.5
7.2

3.5

Urban

Real Estate

27.1
21.2
18.8
18.5

0.1 0.8

Entertainment

Transportation

Information and3.8

Travel2.1

International

Communication

4.8

7.8

4.4

HotelsTransportation

Technology

Operating income
Total（¥ billion)

9.8（単位︓億円）

7.9
5.3

9.9

5.9

3.3

6.9

0.1
-0.0

-1.5

1.4

1.0

-1.4

0.8

2.3

1.9

1.0

0.1

0.0 0.5

0.6 1.3

-0.7

-2.6
-4.9
-13.2

-7.2

Urban

Transportation

Real EstateEntertainment

Information andCommunication

-3.6

-4.4

Travel-5.2 -4.8

International-4.3

HotelsTransportation

Technology

5How COVID-19 Impacted Each Businesses（FY2021 Results）■COVID-19 impact in each business<Breakdown for each business segment>（¥ billion)
Total

Urban
Transportation

Real EstateEntertainment

TravelHotels

Revenue from operations-215.2

-65.3

-27.7

-36.2

-28.7

-51.0

Operating income-104.2

-49.5

-11.3

-15.6

-10.0

-18.5

Ordinary income-103.9

-49.5

-10.9

-15.7

-9.9

-18.7

Extraordinary income ※1

8.8

0.6

0.5

0.8

4.4

2.6

Extraordinary loss ※2

19.4

1.3

2.9

4.7

5.6

5.1

Income before income
taxes-114.4

-50.2

-13.3

-19.6

-11.0

-21.2

※1 Employment adjustment subsidies etc.

※2 COVID-19-related losses■ How COVID-19 impacted each business
Urban
Transportation

・Less revenue with fewer people going out during SOE and drop in inbound tourism

Real Estate・Shopping facilities closed temporarily or operated with reduced hours; domestic condominium
business suspended sales/marketing activities

Entertainment

・Fewer pro baseball regular season games; Takarazuka Revue performances cancelled;
restrictions on events

Travel・Domestic and international tours suspended; surge in cancellations

Hotels・Temporary closures of some hotels, Drop in inbound and domestic demand hit bytravel/outing and banquet cancellations
6

Response to COVID-19 Pandemic Impact（FY2021）■Recovery in bottom line and cash flow
• Bottom line: To reduce costs, revenue-starved businesses scaled backtheir operations as much as possible※1, while businesses in general
reduced, or deferred payment of, expenses (e.g., repair and advertising).
Meanwhile, we reduced fixed expenses and applied for government relief
programs (e.g., employment adjustment subsidies). Consequently, theresult for profit and loss was better than initially expected.
※1 Reduced some bus services, closed some hotels, etc.

• Cash flow: We reduced or deferred CapEx※2 (especially that for
maintenance and renewal). We also controlled growth investment(investment in for-sale property, equity investments).
※2 We cut the CapEx budget by ¥40.0 billion from the initial (pre-pandemic) level.
Nonetheless, actual capital expenditure for fiscal 2021 came to ¥108.5 billion, ¥27.4
billion more than the previous year. This increase was the result of mounting costs ofongoing large projects (e.g., Umeda 1-1 Project, project to rebuild Kobe Hankyu
Building).

7

Urban Transportation Results

COVID-19 impact(¥ billion)

FY2021Results

FY2020Results

Revenue from operations

-65.3

-5.2

Operating income

-49.5

-4.7

Big decrease in revenue and income: In railway and automobile businesses, COVID-19
caused huge decline in ridership.
(¥ million)

FY2021Results

Revenue from operations
Operating income

FY2020Results

Change%156,926

227,176-70,250-30.9%-5,108※ (-5,829)

40,056-45,164※ (-45,885)―(―)[Breakdown by type of business] ※ Parenthesized figures indicate reversals of COVID-19-related losses and subsidies recorded

as extraordinary income. (same for the table below)

Revenue from operations(¥ billion)
COVID-19 impact-44.8 billion yen

Railway

FY2021Results

Automobile

Y on Y-3.4 billion yen

112.3-16.5 billion yen

FY2020Results-1.4 billion yen

Retailing
Others-49.5-8.8 billion yen

47.9-0.5 billion yen-4.0 billion yen

FY2021Results-39.4 billion yen

161.7

32.7

Operating income-15.2-0.6 billion yen

7.9
(7.9)

-6.8
(-7.5)

14.0

21.4

-7.5

0.8
(0.7)

8.8

9.4

-0.6

0.7
(0.7)

*Not including head office expenses /adjustments.

FY2020Results
43.5-3.3 billion yen

1.9-1.2 billion yen

1.3-0.1 billion yen

0.9

Impact of outsourcing of convenience store /station-based store operations (Aug 2019)-4.5 billion yen

Y on Y-35.6(-35.6)-8.7(-9.4)-0.5(-0.6)-0.2(-0.2)(Notes)In the period under review,
the advertising agency
business was transferredto the Other segment (aspart of a restructuring of
the advertising business).
Revenue and income fromthe Urban Transportation
segment’s advertising
operations are now
included in the data forthe segment’s railway
business (the first of thefour businesses shown in
the table on the left).

8

[Urban Transportation] Railway Performance Results
Hankyu Corporation
Fare revenues (¥ million)*
FY2021Results
Commuter pass

FY2020Results

ChangePassenger volumes (Thousands)*
FY2021Results

FY2020Results

Change28,093

34,119-6,025(-17.7%)

277,068

344,604-67,535 (-19.6%)

Workers

25,62529,623-3,998(-13.5%)

216,044

243,854-27,810(-11.4%)

Students

2,468

4,496

-2,027(-45.1%)

61,024

100,750-39,725(-39.4%)

Other tickets

40,982

61,887 -20,905(-33.8%)

208,035

310,525 -102,489(-33.0%)

Total

69,07596,007

485,104

655,129 -170,025(-26.0%)

COVID-19 impact -29.7 billion yen-26,931(-28.1%)-2.2 billion yen

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2021Results
Commuter pass

FY2020Results

ChangePassenger volumes (Thousands)*
FY2021Results

FY2020Results

Change10,476

12,327-1,850(-15.0%)

107,336

127,652-20,316(-15.9%)

Workers

9,750

11,080-1,330(-12.0%)

90,809101,243-10,433(-10.3%)

Students

726

1,246

-520(-41.7%)

16,526

26,409-9,882(-37.4%)

Other tickets

13,725

21,665-7,940(-36.6%)

76,214

118,559-42,345(-35.7%)

Total

24,20233,993-9,790(-28.8%)

183,550

246,212-62,661(-25.5%)

COVID-19 impact -10.9 billion yen-0.9 billion yen＊ 1) Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
2) For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
3) Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway

9[Urban Transportation] Transportation revenue (Factors of YoY Change)《Hankyu Corporation》
Transportation revenue (tier 1 + tier 2)《Hanshin Electric Railway》
Transportation revenue (tier 1 + tier 2)(¥ million)
Totals for commuter
passes and othertickets

1Ｑ

2Ｑ

3Q

4Q

Total

(¥ million)
Totals for commuter
passes and othertickets

1Ｑ

2Ｑ

3Q

4Q

Total

FY2021 Results

13,885 18,126 19,429 17,635 69,075

FY2021 Results

4,968

6,386

6,714

6,132 24,202

FY2020 Results

24,988 24,862 24,359 21,796 96,007

FY2020 Results

8,895

9,195

8,354

7,547 33,993

Change-3,927-2,808-1,640-1,414

Change(%)-11,103-6,737-4,930-4,160 -26,931-44.4% -27.1％ -20.2% -19.1% -28.1%

Factors of YoY Change (estimated)
・COVID-19 impact (YoY change in impact)-¥27,448million
・Recovery from impact of last year’s natural disasters+¥229million(%)-9,790-44.1％ -30.5％ -19.6% -18.7% -28.8%

Factors of YoY Change (estimated)
・COVID-19 impact (YoY change in impact)-¥10,051million
・Recovery from impact of last year’s natural disasters+¥56million

Ridership (compared to same period of fiscal 2019 ）（％）

《Hankyu Corporation》

（％）
0.0

△20.0

△20.0

△40.0

△40.0

△60.0

△60.0

Commuter pass

△80.0

Other tickets

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FY2020

FY2021《Hanshin Electric Railway》

0.0

Commuter pass

△80.0

Other tickets

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FY2020

FY202110

[Urban Transportation] Referential Information
Hankyu Line: Transportation revenue (tier 1 + tier 2)
Commuter passes
Other tickets
Total

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
29,48429,92230,391
31,29931,54932,272
32,62833,19833,456 34,119
28,09360,00060,26860,74961,63060,91062,92062,72063,13763,059 61,887
40,982
89,48590,191
91,141
92,92992,45995,192
95,34896,33596,516 96,007
69,075120%
100%(¥ million)

101%

102%

104%

103%

106%

107%

108%

108%

107%

100%
80%

77%

FY2011＝100%

60%

(FY)

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Hanshin Line: Transportation revenue (tier 1 + tier 2)
Commuter passes
Other tickets
Total
120%
100%

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
10,126
10,623
10,74011,008
11,107
11,372
11,563
11,797
12,024
12,327
10,476
18,89919,422
19,66920,26020,286
21,035
21,136
21,63822,03021,665
13,72529,02530,04530,41031,26931,39432,40732,69933,436
34,05433,99324,202

104%

105%

108%

108%

112%

113%

115%

117%

117%

100%
80%

83%

FY2011＝100%

60%

(FY)

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

11

Real Estate Results

COVID-19 impact(¥ billion)

FY2021Results

FY2020Results

Revenue from operations

-27.7

-1.0

Operating income

-11.3

-0.9

Big decrease in revenue and income. This was partly a reactionary dip from the spike inthe previous year, when the condominium business benefitted from the completion andhandover of large properties. Another factor was COVID-19, which caused commercial
facilities in the Umeda area and elsewhere to close temporarily or operate with reduced
hours.
【Reference】 Condominium sales︓-649 units（867 units; previous year 1,516 units）(¥ million)

FY2021Results

Revenue from operations
Operating income

FY2020Results

Change188,360

236,046

28,923※ (26,539)

41,510-47,686%-20.2%-12,586-30.3%※ (-14,970) (-36.1%)※ Parenthesized figures indicate reversals of COVID-19-related losses and subsidies recorded as extraordinary income.
(same for the table below)[Breakdown by type of business](¥ billion)
Revenue from operations
Real estate leasing

COVID-19 impact-13.7 billion yen

Real estate sales and others-15.1 billion yen

Revenue from operations
FY2021Results

FY2020Results

99.7

111.0

-0.9 billion yen

105.7

143.2

-0.1 billion yen

Y on Y

Operating income
FY2021Results

FY2020Results

29.2(26.9)

35.2-11.3-9.1 billion yen-37.5-2.4 billion yen

8.3
(8.1)

-0.8 billion yen

15.1-0.1 billion yen

Y on Y-6.0(-8.3)-6.8(-6.9)*Not including head office expenses/adjustments.

12[Real Estate] Referential information
Leasable area（at the end of fiscal year ）［1,000㎡］［1,000㎡］

Leasable area （Left axis）

Umeda area only（Right axis）

2,000

1,000

2,000
Completion of
GRAND FRONT OSAKA

1,800

900
Acquired Lalaport Koshien (site)

1,600

1,580

1,400

1,200

(FY)

680

Completion of
Umeda Hankyu Building Phase Ⅱ

Completion of Umeda 1-1 Project PhaseⅠ,
start of work on PhaseⅡ,
Partial sale of stake of GRAND FRONT OSAKA

Completion of
Umeda Hankyu Building Office Tower
2011

2012

2013

2014

810

Start of work on PhaseⅠof the Umeda 1-1 Project

800

700

600
2015

2016

2017

【Hankyu Nishinomiya Gardens】 【Umeda Hankyu Building】

2018

2019

2020

2021

【GRAND FRONT OSAKA】

13

Entertainment Results

COVID-19 impact(¥ billion)

FY2021Results

FY2020Results

Revenue from operations

-36.2

-4.4

Operating income

-15.6

-3.0

Big decrease in revenue and income. The sports and stage businesses were both hit by
COVID-19. In the sports business, there were fewer Hanshin Tigers’ regular season
games, and in the stage business, many Takarazuka Revue shows were cancelled. Even
after events resumed, the games and shows that did go ahead provided less ticket
revenue due to event restrictions.
(¥ million)

FY2021Results

Revenue from operations
Operating income

FY2020Results

Change%42,192

74,020-31,828-43.0%-2,258※ (-6,149)

11,695-13,954※ (-17,844)―(―)※ Parenthesized figures indicate reversals of COVID-19-related losses and subsidies recorded as extraordinary income.
(same for the table below)[Breakdown by type of business](¥ billion)
SportsStage

COVID-19 impact-20.1 billion yen-16.1 billion yen

Revenue from operations

FY2021Results

FY2020Results

21.1

39.5

-2.1 billion yen

21.0

Operating income

Y on YFY2021Results

FY2020Results-2.5(-3.4)

6.5-18.3-9.6 billion yen

34.4-2.3 billion yen-13.5-6.1 billion yen-1.7(-1.3)-0.9 billion yen

7.2-2.1 billion yen

Y on Y-9.0(-9.8)-5.5(-8.6)*Not including head office expenses /adjustments.
14

[Entertainment] Referential information
Hanshin Tigers Home Game : Admission numbers

Number of home games︓ 60 (-9 from previous year)＜Breakdown＞ No spectators ︓ 1
Approx. 5,000 ︓ 33
Approx. 10,000 ︓ 5
Approx. 20,000 ︓ 21

(Thousands of people) (CY) 2011

2016

Admissions

2012

2013

2014

2015

2017

2018

2019

2020

2,898

2,728

2,772

2,690

2,878

2,911

3,035

2,899

3,091

518

4

5

2

2

3

4

2

6

3

2

Ranking

Notes: “Admissions” indicates the actual number of admissions for a given season (calendar year).

Takarazuka Revue :Audience numbers(Thousands of people)

・Takarazuka Grand Theater and Tokyo Takarazuka Theater reopened (Jul 17 and Jul 31, respectively) at<50% capacity
・After event restrictions were eased, Takarazuka Grand Theater and Tokyo Takarazuka Theater returned
to full capacity excluding frontmost seats (from Sep 25 and Oct 9, respectively).
・After state of emergency was declared in January, the theaters returned to <50% capacity until March 7.
・Number of shows Takarazuka Grand Theater ︓240（-179 from previous year）
Tokyo Takarazuka Theater ︓265（-172 from previous year）(FY) 2012

Total

2013

2014

2015

2016

2017

2018

2019

2020

2021

2,392

2,502

2,672

2,668

2,825

2,844

2,996

3,128

2,991

1,565

Takarazuka Grand Theater

925

1,014

1,074

1,179

1,149

1,169

1,191

1,207

1,106

485

Tokyo Takarazuka Theater

948

965

977

969

1,000

967

992

990

917

460

Other theaters

519

523

621

520

623

586

619

598

572

200

53

122

195

333

396

133

Live screening※1

－

－

－

－

Live streaming※2

－

－

－

－

－

－

－

－

－

287

※1 Audiences who paid to see performance screened live in cinema※2 Audiences who paid to view livestream performance on home TV or device

15

Information and Communication Technology Results
Revenue declined, reflecting a dip from the high level in the previous year, when theinformation services business gained a large order for transport systems. However,income remained at the previous year’s level, as the broadcasting and communications
business saw an increase in number of subscribers to internet services.
(¥ million)

FY2021Results

FY2020Results

Change%Revenue from operations

58,08358,576

-492

-0.8%

Operating income

5,556

5,598

-42

-0.8%

16

Blank page17

Travel Results

COVID-19 impact(¥ billion)

FY2021Results

FY2020Results

Revenue from operations

-28.7

-4.9

Operating income

-10.0

-3.1

Big decrease in revenue and income: Due to COVID-19, international tours werecancelled throughout the period. Domestic tours fared well for part of the period, but
overall attracted fewer customers year on year.
(¥ million)
Revenue from operations
Operating income

FY2021Results

FY2020Results

Change%11,96033,766-21,805-64.6%-7,397※ (-8,565)

232-7,630※ (-8,797)―(―)※ Parenthesized figures indicate reversals of COVID-19-related losses and subsidies recorded as extraordinary income.

18

[Travel] Referential information
Billings
Domestic travel

450.0

Overseas travel(¥ billion)

400.0

132.4

350.0
300.0

128.5

111.9

146.3
136.8
132.5

250.0

129.0

136.1

136.7
128.6

200.0
150.0

255.3

270.9

290.1

261.6

100.0

234.7

201.1

186.9

206.6

229.8

203.3

55.9

50.0

2.5

0.0
FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021※Figures for fiscal 2011 to fiscal 2015 represent the simple aggregate amounts from Hankyu Travel
International and Hankyu Hanshin Business Travel.
The figures from fiscal 2016 and onwards represent the aggregate amounts from the two companies
as well as from Hanshin Travel International (offsetting intercompany transactions).

19International Transportation Results
Revenue theand effects
income declined.
Factors
includedand
US-China
war andthanks
declinetoin rise
air inDespiteof COVID-19,
revenueincometrade
increasedtransport volume,
especiallyJapan
andAnother
East Asia.
emergencytransportation
in inEast
Asia.
factor was a rise in sales prices amid ashorter supply of air transport.
(¥ million)

FY2021Results

FY2020Results

ChangeRevenue from operations

85,552

76,186

Operating income

2,308

170

%

+9,366 +12.3%+2,137―20

[International Transportation] Referential information【Total handling volume for Japanese and non-Japanese companies in the International Transportation Business segment】

160
140
120

Air Export Freight Weight
121

117

115

（unit︓thousand ton）

128

141
115

148

121

107
93

100
80
60
40
20
0
FY2012140

FY2013

FY2014FY2016FY2017FY2018FY2019

TEU※-measured overseas export volume

120
100
80

FY201576

79

FY2012FY201392

98

95

FY2014FY2015FY2016FY2020

FY2021（unit︓thousand TEU）

103

111

113

121

119

FY2019FY2020

FY20216040
20
0FY2017FY2018※TEU︓‘Twenty-foot equivalent unit’—a unit of cargo capacity based on the volume of
a 20-foot-long container

21

Hotels Results

COVID-19 impact(¥ billion)

FY2021Results

FY2020Results

Revenue from operations

-51.0

-5.2

Operating income

-18.5

-3.3

Big decrease in revenue and income: Due to COVID-19, some hotels closed temporarily,
and demand slumped in the accommodation and food/beverage businesses.
(¥ million)
Revenue from operations
Operating income

FY2021Results

FY2020Results

Change%-41,135-68.2%-14,784※ (-17,284)―(―)

19,14560,280-17,927※ (-20,427)-3,142※ Parenthesized figures indicate reversals of COVID-19-related losses and subsidies recorded as extraordinary income.

[Performance Highlights for Fiscal 2021※1]
Occupancy rates of Hankyu Hanshin Hotels※2
Total 24.8％ (-55.3 points from previous year)
Kansai area 28.9% (-51.7 points from previous year)
Tokyo metropolitan area 16.8% (-62.9 points fromprevious year)
Average daily rates (ADR) of Hankyu Hanshin Hotels※2
Total ¥10,455(-¥3,123 from previous year)
Kansai area ¥10,287 (-¥2,263 from previous year)
Tokyo metropolitan area ¥11,830 (-¥4,337 fromprevious year)※1 The data omits the COVID-related temporary closures of some hotels.
※2 Including remm Kagoshima《Hankyu Hanshin Hotels》
100.0

Occupancy rates (since January 2020)
Tokyo metropolitan area

80.0

Kansai area
60.0

40.0

20.0

0.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FY2020

FY202122

[Hotels] Referential information
Average daily rates (ADR) and occupancy rates of Hankyu Hanshin Hotels in the Tokyo metropolitan ※1
area and Kansai area
Tokyo metropolitan area ADR ※2
Kansai area ADR ※3
21,000Tokyo metropolitan area occupancy rate(right axis) ※2
89.9%

18,000
79.7%

92.2%
83.3%

15,00012,000Kansai area occupancy rate（right axis） ※3

92.6%

92.2%

93.9%

94.3%

95.4%

86.6%

88.6%

90.5%

90.8%

88.7%

15,21015,853

17,221
14,61914,288

90.9%

80.6%

80.0%

79.7%

16,665

15,44916,654※4

16,167

14,14013,54913,520100.0%

90.9%

11,61660.0%
11,83013,748※4

28.9%

12,55010,287

10,210

9,000
9,407

20.0%

16.8%

9,521

6,000
（¥）

40.0%

0.0%
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018※1

FY2019FY2020（％）

FY2021

Non-Japanese guests as a percentage of overnight-stay guests
Tokyo metropolitan area ※2

50.0%
40.0%

31.4%

30.0%
20.0%
10.0%
0.0%

22.7%
13.1%

14.9%

38.6%

38.1%

36.9%

37.0%

12.3%

FY2012FY2013

42.3%
40.6%

45.6%

39.9%

44.8%

37.6%

25.0%
17.3%

10.0%

Kansai area ※3

FY2014

The total figures for FY2021 is 0.7％※5(-38.8 points from previous year)

FY2015FY2016FY2017FY2018FY2019FY20201.9%
0.4%

FY2021※1 The data omits the COVID-related temporary closures of some hotels.
※2 Directly managed by Hankyu Hanshin Hotels in the Tokyo metropolitan area
※3 Directly managed by Hankyu Hanshin Hotels in the Kansai area
※4 Since FY2020, we started reporting the earnings of overseas online travel agents on a gross basis, rather than on a net basis as before.
The new method (gross basis) has been applied retroactively to the previous fiscal year.
※5 Including remm Kagoshima

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

FY2021Results

FY2020Results

ChangeOperating income

2,066

95,170-93,103

Non-operating income

3,572

7,331

-3,759―3,389-3,38913,262

13,706-443

Interest expenses

8,885

9,267

-381

Equity in loss of affiliates

1,622

―

+1,622-7,62388,795-96,418

Equity in income of affiliates

Non-operating expenses

Ordinary income24Consolidated Statements of Income(Extraordinary profit and loss)(¥ million)

FY2021Results

FY2020Results

ChangeExtraordinary profit and loss

-33,389-2,048-31,341

Extraordinary income

13,167

6,038+7,129Gain on contributions for construction

3,485

4,643

-1,158

Employment adjustment subsidies

8,715

―

+8,715

Other

966

1,394

-428

46,557

8,086+38,470

Loss on reduction of noncurrent assets

3,568

4,636

-1,068COVID-19-related losses

19,382―+19,382

Structural reform-related loss※

18,618―+18,618

Other

4,989

3,450

+1,538Extraordinary loss

※ The structural reform-related loss in the hotels business. See page 39 for more details.

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

FY2021Results

FY2020Results

ChangeIncome before income taxes-41,01386,746-127,759

Total income taxes-6,47829,834-36,312

Income taxes—current

4,205

28,235-24,030

Income taxes—deferred-10,683

1,599-12,282-34,535

56,911-91,447

2,166

2,051

+115

-36,70254,859-91,562

Net income
Net income attributable to noncontrolling interests
Net income attributable to owners of
the parent

26

Blank page27

Consolidated Balance Sheets
FY2021Results(¥ million)

Net assets

Liabilities

AssetsCurrent assets
Noncurrent assets

Total assets

325,3072,295,721

FY2020Results
262,984
2,226,097

Change+62,322 Land and buildings for sale︓+37,086
Property and equipment and+69,624 intangible assets : +33,332
Investment securities : +30,792

2,621,028 2,489,081 +131,946

Current liabilities

380,618

394,634-14,016Long-term liabilities

1,330,424

1,156,774+173,649

Total liabilities

1,711,042 1,551,409 +159,633
833,640886,935

Accumulated othercomprehensive income

33,511

18,711+14,800

Non-controlling interests

42,83432,025+10,808

909,985

937,672-27,686

33.1%

36.4%

-3.3p

Equity ratio

FY2021Results

FY2020Results

ChangeDebt

824,622773,465+51,156

Bonds

197,000

122,000+75.000

Commercial paper

30,000―+30,000

Lease obligations

11,425

8,014+3,411

Interest-bearing debt

1,063,048

903,480 +159,568

Net income attributable to owners of theparent : -36,702-53,295 Payment dividend :-12,188
Less treasury stock, at cost : -4,477

Shareholders’ equity

Total net assets

Remarks

28

Consolidated Statements of Cash Flows(¥ million)

FY2021Results

FY2020Results-32,501

123,086-41,01357,502-36,799-29,871

86,74656,542
2,803-15,295

Cash flows from investing activities-102,151-128,498

Purchases of noncurrent assets-136,958
19,911-14,137
29,249-96,028884-27,660
19,631

134,631964-4,660-12,188
159,568-9,960-11,020
26,424

-354
-375

-7
-4,454

23,526
2,072
25,222

27,589391
23,526

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

Proceeds from sales of noncurrent assets
Purchases of investment securities
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 year(※) “Depreciation and amortization” includes amortization recognized as extraordinary losses
related to the COVID-19.

29

《Reference》 Comparisons with March forecasts(¥ billion)

Revenue from operations

Operating income

Ordinary income

Net income attributableto owners of the parent

FY2021Results

FY2021
Forecasts(As of Mar.)

ChangeRemarks

568.9

565.0

+3.9
(+0.7%)

2.1

-5.0

+7.1
(―)

-15.0

+7.4
(―)

Exceeded forecast becauseof better-than-expected
operating income

+3.3
(―)

Exceeded forecast becauseof better-than-expected
ordinary income, whichmore than offset worsethan-expected COVID-19related losses.

-7.6

-36.7

-40.0

Results for both items
exceeded forecasts becauseof better-than-expected
domestic travel sales inMarch and cost savings
among the businesses

30

《Reference》 Consolidated Statements of Income(¥ billion)[Upper table] Revenue
from operations[Lower table] Operating
incomeTotal

FY2021Results①

FY2021
Forecasts(As ofMar.)②

Change①-②

FY2021
Forecasts(As ofFeb.)③

Change①-③

FY2021
Forecasts(As ofNov.)④

Change①-④

FY2020Results⑤

Change
①-⑤

568.9

565.0

+3.9

575.0

-6.1

575.0

-6.1

762.7

-193.8

2.1

-5.0

+7.1

-9.0

+11.1

-12.0

+14.1

95.2

-93.1

(Breakdown for each business segment)
Urban Transportation

Real EstateEntertainment
Information andCommunication
Technology
TravelInternational
Transportation
Hotels

156.9

157.7

-0.8

161.9

-5.0

227.2

-70.3

-5.1

-6.0

+0.9

-2.6

-2.5

40.1

-45.2

188.4

191.0

-2.6

197.1

-8.7

236.0

-47.7

28.9

27.7

+1.2

27.6

+1.3

41.5

-12.6

42.2

41.5

+0.7

39.5

+2.7

74.0

-31.8

-2.3

-3.5

+1.2

-6.4

+4.1

11.7

-14.0

58.1

59.8

-1.7

59.8

-1.7

58.6

-0.5

5.6

5.3

+0.3

5.5

+0.1

5.6

-0.0

12.0

8.8

+3.2

11.4

+0.6

33.8

-21.8

-7.4

-10.0

+2.6

-12.6

+5.2

0.2

-7.6

85.6

84.0

+1.6

76.2

+9.4

76.2

+9.4

2.3

2.0

+0.3

0.1

+2.2

0.2

+2.1

19.1

18.7

+0.4

21.6

-2.5

60.3

-41.1

-17.9

-18.4

+0.5

-21.1

+3.2

-3.1

-14.8
31

《Reference》 Consolidated Statements of Capital Expenditure(¥ billion)

FY2021Results①

FY2021
forecasts(As of Nov.)②

Change①-②

FY2020Results④

Change
①-④

108.5

118.7

-10.2

81.1

+27.4

Urban Transportation

29.5

34.4

-4.9

32.9

-3.4

Real Estate

68.8

71.0

-2.2

32.2

+36.6

Entertainment

1.7

2.5

-0.8

4.2

-2.4

Information and Communication
Technology

4.5

5.5

-1.0

4.9

-0.3

Travel

1.4

1.8

-0.4

1.2

+0.1

International Transportation

0.7

1.3

-0.6

1.1

-0.4

Hotels

1.9

2.1

-0.2

4.8

-2.9

Total capital expenditure(Breakdown for each business segment)

Note : Capital Expenditure is not included in the forecasts announced in February and March 2021.

32

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

FY2021
forecasts(As of Nov.)②

FY2021Results①

Change①-②

FY2020Results④

Change
①-④

55.7

56.2

-0.5

56.5

-0.8

Urban Transportation

27.1

27.4

-0.3

27.6

-0.6

Real Estate

17.3

17.4

-0.1

17.2

+0.2

Entertainment

2.9

2.9

+0.0

3.8

-0.8

Information and Communication Technology

4.2

4.4

-0.2

3.8

+0.5

Travel

0.9

0.9

-0.0

0.8

+0.1

International Transportation

1.3

1.3

-0.0

1.3

-0.0

Hotels

2.4

2.4

-0.0

2.5

-0.1

60.3

47.0

+13.3

154.1

-93.8

Urban Transportation

21.9

24.8

-2.9

67.7

-45.7

Real Estate

46.4

45.2

+1.2

58.8

-12.4

Entertainment

0.7

-3.5

+4.2

15.4

-14.8

Information and Communication Technology

9.9

10.0

-0.1

9.4

+0.5

Travel

-6.5

-11.7

+5.2

1.0

-7.5

International Transportation

3.6

1.4

+2.2

1.5

+2.1

-15.6

-18.7

+3.1

-0.6

-14.9

Total Depreciation and amortization(Breakdown for each business segment)

Total EBITDA (※)(Breakdown for each business segment)

Hotels(※) EBITDA=operating income + depreciation expenses + amortization of goodwill
Note : Depreciation costs and EBITDA are not included in the forecasts announced in February and March 2021.

33

Ⅱ. Future Strategy(1) Medium-Term Management Plan andCurrent Strategy(2) Update of Long-Term Vision34

Reviewing Progress on Medium-Term Management Plan
■Reviewing Progress on Medium-Term Management Plan(FY2019~FY2022)‧ In May 2017, we unveiled the Long-Term Vision for 2025, a vision for sustained growth in achanging landscape.
‧ Our first task was to devise an action plan for the first four-year phase (fiscal 2019–2022) of thislong-term strategy—the result was the current Medium-Term Management Plan. Since then, we
have pressed ahead with strategies based on the Long-Term Vision with the aim of raising
operating income level to the ¥110.0 billion level by the end of the current medium term, fiscal
2022. (see pages 51-52 for a description of Long-Term Vision for 2025).
‧ Until the pandemic struck, we were on course to meeting our targets for fiscal 2022. Growth
was proceeding as planned, and we were confident that we could maintain financial soundness
while investing toward higher future growth.
‧ However, the pandemic rocked many of our businesses, with devastating consequences for ourgroup’s overall performance.
‧ Another problem is that the business landscape has changed markedly from what we assumed
when drawing up the Medium-Term Management Plan. For these reasons, it is now impossible toachieve the above medium-term target (¥110.0 billion operating income by fiscal 2022).

Accordingly, we have withdrawn this target, meaning that there is currently no interim
target for the Long-Term Vision.

35

Projections for recovery from effects of pandemic■Projections for recovery from effects of pandemic
・We have projected that economic activities will recover in a three broad
phases.
・Based on current trends, phase 2 will probably begin in fiscal 2023 andphase 3 in fiscal 2024. That said, the opaque outlook makes it impossible tostate a precise timespan.
FY2021

FY2022

FY2023After FY2024

Phase 1

Phase 2Phase 3

In Japan, short-distance travel
resumes. Travel distances
gradually increase, and theimpact of physical distancing
eases off.

Travel gradually
resumes across theworld.

The pandemic is brought
under control. Economic
activities in Japan andabroad recover significantly.

Even by phase 3, the businesslandscape will not have fully
recovered to pre-pandemic
levels.
36

Overhauling the Medium-Term Management Plan: Assumptions• In pre-pandemic times, many of our businesses (the urban transportation, realestate, sports and stage, travel, and hotels businesses) maintained their competitiveedge in the B2C sector by delivering products and services in offline, in-person
settings. Their business model was predicated on people traveling.
• However, the pandemic has undermined this business model, and even if we reachphase 3, there can be no full return to the pre-pandemic landscape. The pandemic
has created a new normal in which people travel less and spend more time online.
This new normal has far-reaching strategic implications for our organization.
• Since the business landscape has diverged significantly from our strategic
assumptions, we need to radically overhaul the medium-term plan.
• That said, the exact timing of the phases remains unclear, and we do not yet knowwhat the new normal (from phase 3) will look like.
• Another source of uncertainty is our new projects (including projects to make more
effective use of hotel land in Umeda and Senri-Chuo, shown on page 42 and 43) andparticipation in a plan for the construction of new railway lines in Osaka. It will taketime until we get a clear picture of how these plans will proceed.
• Thus, for fiscal 2022, we want to turn around performance as soon as possible andaccelerate efforts to prepare for the new normal. Our action plan is shown on thenext page.
• See page 50 for the assumptions underlying the medium- to long-term plan.
37

Current strategy(FY2022)■Current strategy(FY2022)<Task 1> Establish crisis recovery phase‧ We will establish a crisis recovery phase, during which we focus all efforts onachieving a swift recovery from the effects of the pandemic.
‧ During this phase, we will undertake the following actions to turn aroundperformance as soon as possible and contain the impact on financial soundness.
【Actions during crisis recovery phase】

Profitability••

While working to recover earnings, we will devise and implement, as swiftly as
possible, strategies to reduce fixed expenses or to convert them to variable
costs.
We will also radically restructure the hotels business, which faced harsh
circumstances in pre-pandemic times and got hit hard by the pandemic.

Investment inmaintenance and renewal

Growth investment••

・ Streamline workflows, save labor
・ Increase productivity to control costs
・ Reallocate resourcesetc.

We will continue to control the budget forsuch investment.

•

We will maintain our growth investment inongoing large projects.
However, for prospective projects, we will be
all the more circumspect in weighing up the
potential returns, business case, and risks.

<Task 2> Adapt to the new normal‧ Recognizing that the pandemic hastened a shift to a new normal, we will adapt
accordingly(see pages 44-47).
38

Structural Reforms in the Hotels Business①■Hankyu Hanshin Hotels: Current situation, issues to address• For some years, Hankyu Hanshin Hotels have faced anincreasingly crowded market, especially in the Kansai area.

【Results of Hankyu Hanshin Hotels】• This situation was aggravated by COVID-19: During thestates of emergency, Hankyu Hanshin Hotels had totemporarily close some hotels, leading to a big drop in
occupancy rate and use of party/banquet facilities over the
full-year period. Likewise, the restaurant businessexperienced a slump. Consequently, Hankyu Hanshin
Hotels posted a significant loss for the period under review.

（¥ billion）

FY2019Results

FY2020Results

FY2021Results

Revenue fromoperations

48.3

47.3

12.9

Operatingincome

1.0

-3.4

-17.9

Net income

0.4

-3.6

-29.7

• The future outlook is concerning too, as inbound demand shows no sign of returning soon.
• Accordingly, to turn performance around as soon as possible and help ensure that the hotels
business remains a self-sustaining core business, we are proceeding with structural reforms
covering operational, personnel, and financial aspects.

Rebuilding Hankyu Hanshin Hotels
Alongside efforts to achieve a recovery from COVID-19 (to recover sales and improve thebalance sheet), Hankyu Hanshin Hotels will withdraw from unprofitable hotels and cut fixed
expenses in order to make the accommodation and food/beverage businesses more resilient tolulls in demand. These moves should help restore real profit (which discounts expenses
associated with withdrawing from hotels) in FY2025.
39

Structural Reforms in the Hotels Business②■Description of Structural Reforms in the Hotels Business① Operational

・ In the hotels business, we decided some time ago that any new hotels we open should be no-frills hotels,
and we put the existing full-service hotels under review in terms of the business model and use of assets,with a view to ensuring the profitability of the real estate.
・We will focus resources on no-frills hotels (which have good profit potential) and a selected number of fullservice hotels. Conversely, we will close hotels that are unprofitable, underperforming, or dilapidated.
Seven hotels will be closed, as shown below.
End of FY2022

Dai-ichi Hotel Annex, Kichijoji Dai-ichi Hotel, remm Kagoshima※1, Umeda OS hotel※2※1 By the end of FY2022, remm Kagoshima will cease to be a directly managed hotel andbecome a chain hotel managed by the property’s owner.
※2 Umeda OS hotel is managed under contract by Hankyu Hanshin Hotels

End of FY2023

Daiichi Hotel Tokyo Seafort

Around the end of
FY2025

Hotel new Hankyu Osaka ⇒ see page 42

Around the end of
FY2026

Senri Hankyu Hotel ⇒ see page 43② Personnel
・As well as downsizing the workforce as part of the restructuring program (reallocating resources), we will
run a business process inventory to see where we could improve productivity. In this way, we hope toachieve enable leaner operation. By hiring fewer people, we will allow the workforce to shrink naturally.

③ Financial

・We are prepared to record impairment loss to reflect the diminished profitability of assets amid the
pandemic.

【Impact of restructuring on FY2021 results】
・For FY2021, the structural reform-related loss of 18.6 billion yen (impairment and costs of reallocating
resources) was recorded as the extraordinary loss in order to account for the costs of the operational andfinancial aspects (① and ③ on the above).

40

Structural Reforms in the Hotels Business③■Expected benefits of restructuring
AspectBenefitOperational
Financial• Withdrawing from unprofitable hotels will trim operating losses
associated with the hotels.
• Recognizing impairment will reduce depreciation cost.

Personnel• Reduction in payroll: approx. -800 employees(Beginning of FY2022 : approx. 2,300 employees→ Beginning of FY2026 : approx. 1,500 employees)

If these measures prove successful, the business should return to profit
even if sales remain at 90% of pre-COVID levels, resulting in a more
resilient business structure.
(The specific goal※ is to return to real profit in FY2025)※ On the books, there will be an increase in depreciation cost. This is due to the shortening of Hotel New
Hankyu Osaka and Senri Hankyu Hotel’s depreciation schedules (because they will cease operating). In realterms, this increase is not counted.

41

Strategy for Developing the Osaka-Umeda Area•

As mentioned on page 40, Hotel new Hankyu Osaka and Senri Hankyu Hotel willclose. The locations of the hotels, Umeda and Senri-Chuo, are key strategic areasfor us, so once the hotels close we will find ways to increase the usage of the realestate in order to raise its value and contribute to the development of both areas.

■Strategy for the Osaka-Umeda area
・We had been mulling the closure of
Hotel new Hankyu Osaka for sometime. The building was decaying
significantly and, despite its prime
location, the hotel was not
generating the revenue one would
expect from such a location.
・We finally decided to close the hotel
by around the end of fiscal 2025.
This decision was precipitated by
two factors: the opening, nearby
the hotel, of Hotel Hankyu RESPIRE
Osaka (which is of a similar scale),and progress on a plan to relocate
facilities attached to Hotel new
Hankyu Osaka.
・Umeda 1-1 Project is scheduled tobe completed next spring, so once
Hotel new Hankyu Osaka closes, wewill set aside the site for anotherlarge project, through which we will
increase the site’s usage.

【Legend】
Sole-owned or co-owned
properties（see page.90）
Umekita Phase Ⅱ
Development Project

Hotel new Hankyu Osaka

Umeda 1-1 Project(Dai Hanshin Building andShin Hankyu Building
Rebuilding Project)

The Osaka-Umeda area

42Strategy for Developing the Senri-Chuo Area in Osaka■Strategy for Senri-Chuo Area
・Senri Hankyu Hotel is dilapidated and will
be closed by around the end of FY2026.

Overview of the Senri-Chuo area
Map based on GSI geospatial data

（https://maps.gsi.go.jp/#17/34.809594/135.495665/&base=pale&base_grayscale=1&ls=pale&disp=
1&vs=c0j0h0k0l0u0t0z0r0s0m0f1&d=m ）・Meanwhile, the Senri-Chuo area, a key
strategic area for us, will be affected by aplan to redevelop the vicinity around SenriChuo Station (Senri Hankyu Department
Store, Senri Selcy etc.), adjacent to Senri
Hankyu Hotel.
・Accordingly, once the hotel is closed, we
will explore ways to make effective use of
the land to improve the quality of theSenri-Chuo area. Mindful of the need tomaintain the vibrancy and convenience of
the area around the station, we will keep
an eye on the plans to redevelop the areaand decide about the land use accordingly.
■Time from Senri-Chuo Station to Osaka’s
main terminals（The train runs direct to below stations as theKita-Osaka Kyuko Line is connected with theMidosuji Line of the Osaka Metro)

・To Shin-Osaka station approx. 14 minutes
・To Umeda station
approx. 20 minutes

To Umeda【Legend】
Sole-owned or co-owned properties
H2O Retailing assets
Area flagged for redevelopment(Commercial facilities etc.)43Adapting to the New Normal①■The pandemic has transformed lifestyles
COVID-19 induced
trends・Consumers want contactless commerce and they want to avoid
crowded spaces
・Increasingly, businesses are digitizing, supporting workplace
flexibility, and engaging in SDGs (e.g. supporting efforts to go
carbon neutral)※2:Working from home,
digital nomadism, working
at a satellite office,workation, etc.

Lifestyle changes
Changes in population behavior
Fewer unnecessary outings
More even and diverse travel
demandMore dispersed workforce,dispersed learning
More options for where to live

Changes in corporate sector
More workplace flexibility

More BCP

Emphasis on quality of life

New lifestyle needs
Remote work※2
Accelerated digitalization
More online consumptionMore emphasis on SDGs

More emphasis on health and safety, more health consciousness
Rising desire for self-expression and active role in society
Rising desire for communication in reaction to the shift to virtual

Better private spaces
Growing demand for real-life(but safe) experiences
44Adapting to the New Normal②■Direction of Adapting to the New Normal
・ The new normal threatens to undermine the earnings capacity of our existing
businesses. Accordingly, to help ensure sustained growth in the new normal, we will
undertake a two-pronged digital transformation that will enable our businesses tomaintain or improve their competitive edge.

Two-pronged digital transformation
Use digital technology to① improve existing businesses• Offline-based existing businesses will use digital technology to
streamline and enhance the profitability of their offline products
and services.

Use digital marketing (digitally aggregate and analyze customer data)• Using groupwide ID, the businesses willpool their customer data and use big data
analytics to understand customer behavior.

②

Create digitalrevenue streams

In April 2021, we opened theData Analytics Lab in a joint
project with the University of Tokyo.

• To create digital revenue streams, we will build a digital twin citythat reproduces real-world environments in a digital space.

Naming this two-pronged strategy the Hankyu Hanshin DX Project, we will
accelerate plans to integrate it into our medium- to long-term strategy.
45

Adapting to the New Normal③（Examples of actions in individual businesses）
Urban Transportation
・ Our railway business will monitor rail travel demand and adjust timetables asnecessary. We will also use robotics and IoT-driven technology to streamline station
operations and maintenance work.
・They will also capture new revenue opportunities in the new normal. For example,
they will consider providing premium seating (seats reserved for a surcharge) tocapture the rising demand for more space and privacy in rail travel.
Real Estate・The real-estate leasing business has added satellite offices
to its office rentals lineup. The first satellite office (Hankyu
Hanshin ONS Senri-Chuo) opened in April 2021. This office
is managed by Point0 Inc. Point0 (pronounced “pointzero”) is a satellite workspace project in which numerous
companies are participating. It has pooled the technology
and knowhow of the companies to help ensure that thisoffice space has safe, comfortable ventilation, high-levelsecurity, and a pleasant interior. We plan to open othersatellite offices in Kobe’s Sannomiya area and in Kyoto’s
Kawaramachi area.
・For shopping facilities, we will focus on providing the kindof offline shopping experiences that cannot be replicatedonline. For housing, we will focus on product ideas thatcater to new lifestyles like working from home.

Hankyu Hanshin ONS Senri-Chuo,a satellite office opened in April 2021

46

Adapting to the New Normal④（Examples of actions in individual businesses）
Entertainment
・In July 2020, Takarazuka Revue started streaming its
shows, allowing fans to watch the shows at home on their
TV or smartphone. The streamed shows had many views.
・In March 2021, there was an offline-online
hybrid event called “To the Next
Takarazuka,” which conveyed the magic of
Takarazuka Revue.
TravelTo the Next Takarazuka was held in areal-world venue. Visitors could watchshows screened on a huge 8K
widescreen monitor. There was also an
AR attraction in which visitors could
virtually dress up in the revue’s theatricalcostumes.

・Hankyu Travel International provided online tours on Zoom.
・Our travel business starts doing even more online,
A online tour on
including increasing digital advertising as a share
Zoomof total ad spending and enhancing online booking services.
Other
・Working across the group, we created a 3D digital modelof Koshien Stadium. In March 2021, we used this virtual
space to host an online exhibition about living with COVID19. Around 90 companies had booths at the event.
Users attending the exhibition via an avatar.
There was a voice chat option as well as an
option to exchange business cards.
47

《Reference》 Mobility-as-a-Service (MaaS)■Testing our own MaaS project・Hankyu Corporation and Hanshin Electric Railway have teamed up with other railway
companies in Kansai to form a seven-strong consortium※ that will introduce a MaaS
model ahead of Expo 2025 Osaka, Kansai.
※Seven companies︓Hankyu Corporation, Hanshin Electric Railway, Kintetsu Railway, Keihan Electric Railway,
Nankai Electric Railway, Osaka Metro, JR WEST・We are developing our own MaaS app that offers information and services unavailable
on the consortium’s common MaaS. In April 2021, we started testing the app on the
Hankyu and Hanshin rail networks.

【Outline of test】
PurposeApplication nameVerify the effectiveness and performance of the app in
facilitating local mobility and shopping.
maruGOT Nishinomiya

Test period

April 21, 2021 〜 July 20, 2021

Test sample※

Approx. 2,000 residents in Nishinomiya city, Hyogo※STACIA and PiTaPa card holders were recruited.

Service・ Route planner (covers multiple modes of transport, including rail, bus,
and taxi)
・ Booking and payment (links with event planning apps to allow user to hire ataxi or reserve a table)
・ Digital points awarded for participation in test (which encourages useof amenities and transport links)
48

Ⅱ. Future Strategy(1) Medium-Term Management Plan andCurrent Strategy(2) Update of Long-Term Vision

49

Medium- to long-term Strategy（Updating of Long-Term Vision）■Updating of Long-Term Vision
・As we remain in the midst of the pandemic, it is hard to predict how the new normal will look.
However, we need to get clear grasp as soon as possible so that we can present a roadmap for
the future.
・Our Long-Term Vision for 2025 (fiscal 2026) was formulated on the assumption that lifestyles
and business practices would inevitably change sooner or later. However, the pandemic has
hastened these changes and we must update the Long-Term Vision accordingly※.
※In updating the vision, we are mindful of the need to do the following:
Adapt to changes in consumer behavior driven by the pandemic, embrace digital transformation, drive a workplace
revolution , and contribute to the SDG agenda (by going carbon neutral by 2050 for instance)

・Thus, we are updating the plan with an eye on the pace of recovery in demand and the transitionin business conditions. We hope to release the new vision in spring 2022 under the title Vision
for 2030.

FY2018…

FY2022

FY2023…

FY2026…

FY2031Long-Term Vision for 2025 (fiscal 2026)
Update ofLong-Term Vision

Long-Term Vision
Release inspring 2022

50

《Reference》 Long-Term Vision for 2025（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.

Umeda and line-side areas
x stock businesses

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

flow businesses

Strengthen competitiveness by
Construct a stable revenue base in thoroughly pursuing brandthe Tokyo metropolitan area andoptimization and differentiation.
overseas markets.
Strategy③(diversify the portfolio, which is currently

Strategy①

Furthertechnologicaladvances (AI, IoT,
etc.)

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

Enhance economic
valueTokyo metropolitan area and overseas
markets x stock businesses

Make our railway theabsolute best among the
Kansai networks.

Groupwide initiatives,
new business fields, etc.

Enhance social value

concentrated in Umeda and line-side areas).

Strategy②
Make greater use of the Group’s collective strength and develop new
business fields.
Strategy④

The coming age of fullscale population decline
Economic growthin Asia

Declining birth rate
and aging population
Growing numbers ofoverseas visitors

Crumbling infrastructure

Tightening of labormarketImprovements to public
transport infrastructure (airports,
Concentration of population
rail and motorway networks)
into urban areas

Opportunity for Kansai to develop its position as gateway for Asia and the wider world51

《Reference》 Long-Term Vision for 2025（Four strategies）
・
Umeda Line-side
areas

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
optimization anddifferentiation.

Strategy③

Tokyo
metropolitan
・area overseas

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 assets）
Group-wide initiatives, new business fields, etc.

Thoroughly optimize 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.
52

Ⅲ. Forecast for fiscal 2022
(fiscal year ending 31st March 2022)53

Consolidated Statements of Income (Summary)
COVID-19 impact(¥ billion)

FY2022
Forecasts

FY2020Results

Revenue from operations-140.0-215.2

Operating income-82.0-104.2(¥ billion)(¥ billion)

FY2022
Forecasts

FY2021Results

Change

800.0

568.9

+231.1

Operating income

23.0

2.1

+20.9

Ordinary income

16.0

-7.6

+23.6

Revenues from operations
Impact of applying ASBJ 29+112.0 billion yen

Net income attributable toowners of the parent

6.0

-36.7

+42.7

(Reference)
Capital Expenditures

137.5

108.5

+29.0

Depreciation and amortization

60.7

55.7

+5.0

Financial balance ① - ②

-8.3

-7.8

-0.5

Interest and dividend income①

1.1

1.1

-0.0

Interest expense②

9.4

8.9

+0.5

Remarks
Expect growth in revenue and income because
applying ASBJ 29 will impact accounting in somebusinesses (we will now recognize revenue at thegross amount, rather than the net amount as
before, for transactions in the travel business
related to organized tours). Another reason is thatthe urban transportation, entertainment, and otherbusinesses recovered from the impact of thepandemic felt in the previous year.

Expect growth in this item because of the bounceback from the previous year, when we recorded
extraordinary losses related to the COVID-19 andto the restructuring of the hotels business. Anotherreason is that we expect growth in ordinary income.

Applying ASBJ 29 (Accounting Standard for
Revenue Recognition) impacts revenue fromoperations in two main ways (the impact on
operating income is negligible in each case) :1) We will now recognize revenue at the grossamount (rather than the net amount as
before) for transactions in the travelbusiness related to organized tours.
2) We will now recognize revenue at the net
amount (rather than the gross amount as
before) for transactions in the retailingbusiness related to sales and purchasing,and for transactions in the information andcommunication technology segment related
to agency retail sales of electricity.

Note : We have not shown year-on-year comparisons in consolidated forecasts as the forecasts of FY2022 include the effectof the application of ASBJ 29 (Accounting Standard for Revenue Recognition).

54

Applying the Accounting Standard for Revenue Recognition (ASBJ 29)
 What is the new revenue standard?
 ASBJ 29 specifies (1) when and (2) how a reporter will recognize revenue.
 Based on International Financial Reporting Standards, ASBJ was enforced for all companies in Japan in April
2021 (the start of fiscal 2022).
 Summary of standard① The reporter must recognize revenue when the underlying sales or usage occurs (when thecustomer buys the good or uses the service).
② If the reporter provides the good or service to the customer directly(Note 1), then it must recognize the revenue atthe gross amount(Note 2). If the good or service is provided by an agent, then the reporter must recognize therevenue at the net amount(Note 2).
(Note 1)
Examples of criteria: The reporter is primarily responsible for fulfilling the promise to provide the specified good orservice; the reporter has discretion in establishing the price for the good or service; the reporter has inventory risk
before the specified good or service has been delivered.
(Note 2)Gross amount : All gross revenue from the sale is recorded as revenue from operations, without deducting sales costs.
Net amount
Sales costs
are deducted
frombygross
and the difference is recorded as revenue from operations.
 Examples
of :grouptransactions
affected
the revenue
new standard
Segment

Transaction

Current practice

New practice

Impact on revenue, income forfiscal 2022

①

Urban
Transportation

Commuterpass

Report revenue
Report revenue
prorated by month,prorated by month,
starting from thestarting frommonth ofmonth of salecommencement②

TravelOrganized
tours※

Report revenue on
net basis

Report revenue ongross basis

Revenue approx.+¥125.0 billion
No impact on income

②

Urban
Transportation

Sales andpurchase inretailingbusiness

Report revenue ongross basis

Report revenue on
net basis

Revenue approx.-¥4.0 billion
No impact on income

No impact on revenue or income(only the timing of recognitionchanges)※The transactions most affected are those in the travel business related to organized tours.

55Outlook for Operating Income（FY2021→FY2022）••

For fiscal 2022, on the assumption that many businesses will see a reasonable
recovery from the effects of the pandemic, we expect to achieve ¥23.0 billion in
operating income, ¥20.9 billion higher than in fiscal 2021.
However, this increase does not account for extraordinary losses. In fiscal 2021, we
recognized ¥19.4 billion in extraordinary losses related to the pandemic (including
fixed expenses during suspensions of operations and costs associated with cancelling
events). For fiscal 2022, we are expecting such losses to amount to ¥2.5 billion.
Thus, the actual year-on-year increase will be ¥37.8 billion.

23.0
20.5

2.1

-2.5

+¥20.9billion+¥37.8billion

COVID-19related losses-17.3

FY2021COVID-19related losses

FY2022-19.4

Urban Transportation +¥19.1 billion,
Real Estate +¥3.9 billion,
Entertainment +¥8.6 billion,
Travel +¥5.0 billion,
Hotels +¥3.3 billion
56

Consolidated Statements of Income (Breakdown for each business segment)(¥ billion)

Remarks[Upper table]
Revenue from operations[Lower table]
Operating income

FY2022
Forecasts

FY2021Results

Change

800.0

568.9

+231.1

23.0

2.1

+20.9

176.3

156.9

+19.4

12.7

-5.1

+17.8

245.6

188.4

+57.2

30.9

28.9

+2.0

56.4

42.2

+14.2

2.2

-2.3

+4.5

59.4

58.1

+1.3

5.6

5.6

+0.0

144.0

12.0

+132.0

-8.0

-7.4

-0.6

82.9

85.6

-2.7

1.6

2.3

-0.7

28.8

19.1

+9.7

-18.7

-17.9

-0.8

Impact of applying ASBJ 29+112.0 billion yen

Total(Breakdown for each business segment)-4.0 billion yen

Urban
Transportation
Real EstateEntertainment-３.0 billion yen

Information andCommunication
Technology+125.0 billion yen

TravelInternational
Transportation

HotelsCOVID-19 impact (recovery from level of previous year) :・Revenue from operations +¥75.0 billion(Urban Transportation +¥23.0 billion, Real Estate+¥15.0 billion, Entertainment +¥17.0 billion, Travel+¥7.0 billion, Hotels +¥10.0 billion)
・Operating income +¥22.0 billion(Urban Transportation +¥18.0 billion, Real Estate+¥2.0 billion, Entertainment +¥5.0 billion)

Revenue and income growth are expected on the assumption that the business will
recover from the effects of the pandemic (Hankyu and Hanshin lines and automobile
business will see an upturn in fare revenue).
Revenue and income growth are expected on the assumption that condominium sales
will increase and the leasing business will recover from the effects of the pandemic (itwill see an upturn in rent revenue).
Revenue and income growth are expected on the assumption that the businesses will
recover from the effects of the pandemic (the sports and stage businesses will see an
upturn in ticket revenue with more Hanshin Tigers’ regular season games and moretheater productions).
The increase in operating revenue will reflect the increased orders for in the information
services business. The lack of change in operating income will reflect higher direct costs
associated with the extra revenue, and higher labor costs associated with expandedbusiness.
Huge revenue growth is expected on the assumption that this segment will besignificantly impacted by the application of ASBJ 29 and will recover to a reasonable
extent from the effects of the pandemic (it will see an upturn in demand for domestic
tours). However, the segment will post an even bigger loss than it did last year
because of high personnel expenses relative to fiscal 2021, when costs such as that of
furloughing staff were recognized as extraordinary losses.
Decreases in revenue and income are expected because demand is low relative to theprevious year, when East Asia saw emergency demand.
Revenue growth is expected on the assumption that hotels will recover from the effectsof the pandemic (it will see an upturn in accommodation and food/beverage sales).
However, the segment will post an even bigger loss than it did last year because ofhigh personnel expenses relative to fiscal 2021, when costs such as that of furloughing
staff were recognized as extraordinary losses.

57

COVID-19 Impact in Each Segment (assumptions for Fiscal 2022 forecasts)
In 1Q, we predicted that there would be further states of emergency (and priority preventative measures) andprepared full-year fiscal 2022 forecasts upon the following assumptions.

Urban
Transportation【Railway】
We made the following predictions after considering the impact of the 1Q state of emergency (less ridership).
The decline in revenue from other (non-season) tickets will ease after the state of emergency is lifted. By
March 2022, the revenue will be just 10–20% lower than result for the same period in fiscal 2019.
The impact on worker commuter pass revenue will persist throughout the period (the revenue will be around
10% lower than the fiscal 2019 level).
The period-average for student commuter pass revenue will be around 10% lower than the fiscal 2019 level.
【Automobile】
For transit buses, the impact will be similar to that for railway.
For airport shuttle buses, the impact will depend on outlook for air travel (demand for international flights at
Kansai International Airport will not recover within the fiscal year).

Real Estate【Real estate leasing】
The impact of the 1Q state of emergency (store closures, reduced hours) will result in less rent revenue.

Entertainment【Sports】
Pro baseball: Having considered the impact of the 1Q state of emergency (audience-less games), we predictthat after the emergency is lifted baseball revenue will recover provided that there will be around 20,000
sellable seats for each Hanshin Tigers’ regular season game.
【Stage】
Takarazuka Revue: Having considered the impact of the 1Q state of emergency (show cancellations), we
predict that after the emergency is lifted theater production revenue will recover provided that theaters will
return to full capacity (excluding frontmost seats).

TravelHaving considered the impact of the 1Q state of emergency (cancellations of some tours), we predict thatafter the emergency is lifted business will recover significantly (full-year performance will be 30% up fromfiscal 2019 level).
Demand for international tours will not recover within the fiscal year.

Hotels

We made the following predictions after considering the impact of the of the 1Q state of emergency (closureof some hotels):
Regarding accommodation, after the emergency is lifted, domestic demand will steadily recover. Inbounddemand is unlikely to recover in the period (for hotels managed directly by Hankyu Hanshin Hotels※,
domestic demand as of March 2022 will be around 40% less than it was in the same period in fiscal 2019).
Likewise, food/beverage will recover after the emergency is lifted.
※ Excludes hotel locations opened in fiscal 2020 or later.

58

[Urban Transportation] Railway Performance Forecasts
Hankyu Corporation
Fare revenues (¥ million)*
FY2022
Forecasts
Commuter pass

FY2021Results

ChangePassenger volumes (Thousands)*
FY2022
Forecasts

FY2021Results

Change29,85428,093+1,760 (+6.3%)

305,345

277,068+28,277 (+10.2%)

Workers

25,841

25,625+216(+0.8%)

214,041

216,044-2,002 (-0.9%)

Students

4,013

2,468

+1,544(+62.6%)

91,30461,024+30,280(+49.6%)

Other tickets

49,29940,982+8,317(+20.3%)

249,631208,035+41,595 (+20.0%)

Total

79,15369,075+10,078(+14.6%)

554,977

485,104+69,872(+14.4%)

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2022
Forecasts
Commuter pass

FY2021Results

ChangePassenger volumes (Thousands)*
FY2022
Forecasts

FY2021Results

Change10,86910,476+392 (+3.7%)

112,284

107,336+4,947 (+4.6%)

Workers

9,740

9,750

-9(-0.1%)

88,56790,809-2,242(-2.5%)

Students

1,129

726

+402(+55.4%)

23,717

16,526+7,190(+43.5%)

Other tickets

16,834

13,725 +3,108(+22.6%)

92,25876,214 +16,043(+21.1%)

Total

27,70424,202 +3,501(+14.5%)

204,542

183,550 +20,991(+11.4%)＊ 1) Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
2) For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
3) Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway
4) For commuter passes, revenue and ridership were previously counted from the date of sale. As of fiscal 2022, they arecounted from the commencement date (the date from which the ticket is valid).

59

Management Indicators■Management Indicators
FY2021Results

FY2022
Forecasts

Operating income¥2.1 billion¥23.0 billion

EBITDA※1¥60.3 billion¥86.0 billion¥1,063.0 billion¥1,160.0 billion

Interest-bearing debt /EBITDA ratio

17.6 times

13.5 times

D/E ratio※2

1.2 times

1.3 times-¥36.7 billion¥6.0 billion

-4.1%

0.7%

¥1,035.5 billion¥1,135.0 billion

17.2 times

13.2 times

Interest-bearing debt

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

60

Returns to Shareholders■Specific figures for dividend of surplus•

In order to keep the dividend at the stable level, the fiscal 2021 annual dividend will
the same as fiscal 2020: ¥50 per share (¥25 interim + ¥25 year-end)※.
※ Subject to shareholder approval at the General Meeting of Shareholders on June 16, 2021•

Likewise, for fiscal 2022, we expect to deliver a dividend at the same level again:¥50 per share (¥25 interim + ¥25 year-end).
《Reference》 Specific figures for dividend of surplus for fiscal 2020•

Annual dividend per share : ¥50 (¥25 interim + ¥25 year end）•

Treasury stock : In fiscal 2021, we bought back ¥4.3 billion worth of shares.

61

《Reference》 Consolidated Statements of Income (Breakdown by type of business)
Revenue from operations(¥ billion)

Urban Transportation

FY2022
Forecasts

FY2021Results

Operating income

ChangeFY2022
Forecasts

FY2021Results

Change

176.3

156.9

+19.4

12.7

-5.1

+17.8

126.3
38.2
12.6
9.0

112.3
32.7
14.0
8.8

+14.0
+5.5
-1.4
+0.2

20.3
-3.1
0.9
0.6

7.9
-6.8
0.8
0.7

+12.4
+3.7
+0.1
-0.1

245.6

188.4

+57.2

30.9

28.9

+2.0

115.6
147.3

99.7
105.7

+15.9
+41.6

28.6
10.0

29.2
8.3

-0.6
+1.7

56.4

42.2

+14.2

2.2

-2.3

+4.5

26.5
29.8

21.1
21.0

+5.4
+8.8

-0.1
3.7

-2.5
1.7

+2.4
+2.0

[Breakdown by type of business]

Railway
Automobile
Retailing
OthersReal Estate[Breakdown by type of business]

Real estate leasing
Real estate sales andothersEntertainment[Breakdown by type of business]

SportsStage(Note) Segment totals may not match the aggregate of the amounts for each type of business due to separate
head office expenses / adjustments.

62

《Reference》 Consolidated Statements of Capital Expenditure(¥ billion)

FY2022
Forecasts Main investments①

Total capital expenditure

137.5

FY2021Results

Main investments

②

108.5

Change①-②+29.0

Urban Transportation

・New rolling stock,
remodeling of existingrolling stock
44.8 ・Investment in station
apparatus
・Kita-Osaka Kyuko Railway
Line Extension Project・New rolling stock, remodelingof existing rolling stock・Investment in station
29.5 apparatus
・Kita-Osaka Kyuko Railway
Line Extension Project+15.3

Real Estate・Umeda 1-1 Project・Umekita Phase Ⅱ73.2 Development Project・Project to construct Saito
Moegi Distribution Center・Umeda 1-1 Project・Umekita Phase Ⅱ
Development Project68.8 ・Project to rebuild Kobe
Hankyu Building’s east wing
and renew its west wing

+4.4

Entertainment

6.6

Information andCommunication Technology

・Development in public
housing site in Koshien

1.7

+4.9

6.9

4.5

+2.4

Travel

1.5

1.4

+0.1

International Transportation

2.9

0.7

+2.2

Hotels

1.2

1.9

-0.7
63

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

FY2022
Forecasts

FY2021Results①

Change
①-②

②

60.7

55.7

+5.0

Urban Transportation

27.8

27.1

+0.7

Real Estate

20.8

17.3

+3.5

Entertainment

3.6

2.9

+0.7

Information and Communication Technology

5.1

4.2

+0.9

Travel

1.0

0.9

+0.1

International Transportation

1.2

1.3

-0.1

Hotels

2.3

2.4

-0.1

86.0

60.3

+25.7

Urban Transportation

40.5

21.9

+18.6

Real Estate

51.7

46.4

+5.3

Entertainment

5.8

0.7

+5.1

Information and Communication Technology

10.8

9.9

+0.9

Travel

-7.0

-6.5

-0.5

International Transportation

2.8

3.6

-0.8

-16.4

-15.6

-0.8

Total Depreciation and amortization(Breakdown for each business segment)

Total EBITDA※(Breakdown for each business segment)

Hotels※ EBITDA=operating income + depreciation expenses + amortization of goodwill64

Ⅳ. Sustainable Business Practices

65Sustainable Business Practices• We have always taken sustainability seriously and have developed a range ofmeasures based on ESG criteria.
• As part of these efforts, we released the Sustainability Declaration in May, 2020, which
outlines the group’s commitment to addressing global sustainability challenges as partof the SDG agenda. Guided by this Declaration, we will work to become an even moresustainable business.
Employees

Customers

Communities

Contributing toa sustainable society

Shareholders

Partners

Sustainably enhance corporate value

Long-Term Vision for 2025
Medium-Term Management Plan

The vision and strategy for the Group’s
sustainable growth, and the specific plansfor implementation thereof
Three core elements underlie our
pursuit of sustainable growth:① General principles (sustainability vision)② Priority issues (materiality matrix) and thepolicies for each one③ Project themes, non-financial KPIs

Our value to society

Sustainability Declaration
Group Management Philosophy

MissionBy delivering “Safety and Comfort” and“Dreams and Excitement” ,we create satisfaction among ourcustomers and contribute to society.

The Sustainability Declaration embodies
our contribution.
66

Sustainability Declaration①General principles (sustainability vision)

A future vision that we hope to achieve through our sustainablebusiness practices〜 Create a future grounded in "Safety and Comfort",
and a future colored by "Dreams and Excitement". 〜
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 that offers a fulfilling, joyful life to all
and inspires the next generation to dream with hope.
②Priority issues (materiality matrix)

IssuesSafe, reliable infrastructure
Thriving communities

Six priority issues to address as part of our sustainable business practices

Policies
Provide railways and other infrastructure that are safeand disaster-resilient. Ensure that anyone can safely
access our facilities and services.
Help build sustainable communities with rich natural andcultural heritage, making great places to live in, work in,and visit.

Life designs for tomorrow

Promote refined and inspired lifestyle solutions for abetter tomorrow.

Empowering individuals

Provide an inclusive workplace that values diversity andtaps into individual talent. Cultivate tomorrow’s leaders
for society.

Environmental protection

Contribute toward a low-carbon, circular economy.

Robust governance

Act honestly and in good faith, as stakeholders expect us
to do.
67

Non-financial KPIs Based on Sustainability Declaration, Strategies for Achieving Them

■Non-financial KPIs（Red box indicates new non-financial KPIs）
Priority issues

Non-financial KPIs

Safe, reliableinfrastructure

Zero culpable incidents in our railway business

Empowering
individuals※Applies to Hankyu Corporation/Hanshin Electric Railway/Kita-Osaka Kyuko Railway/Nose Electric Railway

Employee satisfaction

Percentage of women in
management positions

Percentage of women among
new hires

Always better than inprevious survey

Around 10％（FY2031）

Always more than 30%※Applies to HHHD and six corecompanies※Applies to HHHD and six corecompanies

Percentage of specific healthguidance provision

Smoking prevalence

Paternity leave uptake

More than 60％（FY2026）

Less than 15％（FY2026）

100％（FY2026）※The survey is conducted biennially in
HHHD and six core companies※Applies to HHHD and six corecompanies

Environmental
protection※Applies to HHHD/Hankyu
Corporation/Hanshin Electric
Railway/Hankyu Hanshin Properties

Rate of CO2 emissions cuts①-26％ compared to FY2014 （FY2031）※Applies to: HHHD and subsidiaries’ Japanese worksites※Applies to HHHD and Hankyu
Hanshin Properties

Rate of CO2 emissions cuts②-40％ compared to FY2014（FY2031）※Applies to Railway energy consumption of Hankyu andHanshin’s railway operations

・We intend to adjust our rate of CO2 emissions cuts targets in line with Japan’s goal to go carbon neutral by 2050.

■Current efforts to integrate sustainability into business strategy

・As part of our commitment to sustainable business practices, we endorsed the Task Force on Climate-related
Financial Disclosures※1 and the United Nations Global Compact※2 in May 2021.
※1 Task Force on Climate-related Financial Disclosures (TCFD)︓Created in 2015 by the Financial Stability Board at the requestof the G20, the TCFD encourages businesses to provide high-quality information about how climate change will impact theirstrategy and finances over the medium and long term, so that investors have sufficient information to make theirinvestment decisions.
※2 United Nations Global Compact︓Announced at the World Economic Forum held in 1999, the UNGC is a pact that enshrines
behavioral principles for businesses around the world. It consists of ten principles in the areas of human rights, labor, theenvironment, and anti-corruption.

68

Actions for priority issues (materiality matrix)① Environmental
Priority issues : Environmental protection【Examples of actions to contribute toward a low-carbon, circular economy】
Cut greenhouse gas emissions,Improve energy efficiency/conservation
・Introduce energy-saving rolling stock in
Railway business・Introduce energy-saving technology inrental buildings
・Convert station, train and theaters lighting
to LED

Lobby atTakarazuka Grand Theater

Aim for more eco-friendly buildings
・Obtain DBJ’s Green Building Certification※ for new
office buildings and large commercial buildings※ The DBJ’s Green Building Certification recognizes
buildings that exemplify best practices in ecologicaland social sustainability. There are five certification
ranks (stars).

【5-star green buildings】
Osaka Umeda Twin Towers South,
Hankyu Nishinomiya Gardens
Osaka Umeda
Twin Towers SouthUse more renewable energy (e.g. solar)・Installed solar energy systems【Installed facilities】
Hanshin Koshien Stadium,（Hankyu）Settsu-shi station,（Hanshin）Oishi station,
HEP FIVE etc.

Hanshin Koshien Stadium

Produce less waste and recycle more
・Recycle more of the drink
containers sold at Hanshin Koshien
Stadium・Phase out one-use plastic items inhotels business (Replacing plastic
straws with ecofriendly alternativesetc.)Bioplastic straws

69

Actions for priority issues (materiality matrix)②

SocialPriority issues : Safe, reliable infrastructure【Examples of actions to improve safety on
the railway】

Preventing platform falls
・Platform screen doors (for preventing passengers
falling onto the track) are being rolled out at
Hankyu and Hanshin stations.

Kobe-sannomiya station（Hankyu）

Kobe-Sannomiya station（Hanshin）【 Examples of actions for disaster
preparedness and disaster mitigation】

Natural Disasters of extreme severity【Examples of actions to provide safe andcomfortable facilities and services】

Improving accessibility
・The rail companies are improving accessibility in the
train and on the platform to ensure safe andcomfortable rail travel for all.
・Hankyu Corporation is yet to make the accessibility
improvements at two stations: Kasuganomichi and
Nakatsu. Of these, there is now a schedule in placefor Kasuganomichi Station. The work should becompleted by the end of fiscal 2023.

Staff and crew qualify as servicecare-fitters
・Alongside hard (physical) improvements, staff arebeing encouraged to train as Service Care-Fitters.
・Hanshin Electric Railway has encouraged such training
since 2013. Now all its station staff and in-train staff
have a Service Care-Fitter license.

・The rail companies are taking hard (physical)
measures to control risks of flooding and earthquakes.
They are also taking soft (non-physical) safetymeasures such as suspending services strategicallyand communicating risk information to passengers.
70Actions for priority issues (materiality matrix)③

SocialPriority issues : Thriving communities【Examples of actions to develop a good living environment】
Hankyu Corporation
Developing the vicinity of Nishinomiya-Kitaguchi Station
・Hankyu Corporation has contributed to development of the vicinity of NishinomiyaKitaguchi Station. In 2008, it opened a large shopping facility, Hankyu Nishinomiya
Gardens, by Nishinomiya-Kitaguchi Station, followed by an annex to the center andanother new section named Hankyu Nishinomiya Gardens Gate. The corporation
also attracted cultural and educational facilities, including Hyogo Performing Arts
Center and the universities. In this way, we have made the area more attractive
and convenient, with plenty of high-quality housing, and we continue improving
the area’s value.
・This community-building effort has won affection: Nishinomiya-Kitaguchi has
ranked top in the Most Desirable Neighborhood※ in Kansai survey for five years ina row.
※See page 89 for details about the Most Desirable Neighborhood survey.

Hankyu Nishinomiya Gardens

Priority issues : Life designs for tomorrow【Examples of actions to improve existing services and create new
business by utilizing ICT innovation】
Mimamorume : Hankyu Hanshin’s safety tracking service
・Mimamorume harness the strengths of ICT for better protection. Applications include

a school safety tracking system, where IC chips are inserted into pupils' schoolbags
and sensors mounted on school gates enable tracking of their comings and goings via
a phone app. (As of March 2021, some 1,400 schools and pre-schools have adopted
Mimamorume.)
・ Building on Mimamorume, we developed Machinaka Mimamorume, an app thatconnects with local authorities to watch over elderly and vulnerable residents.

A Mimamorume IC chip inserted
into a schoolbag

71

Actions for priority issues (materiality matrix)④

SocialPriority issues : Empowering individuals【Examples of actions to improve employee satisfaction,【Examples of actions for promoting diversity 】
creating a more positive workplace】
・We conduct a periodic employee questionnaire and■Empowering Women in the Workplace
use the results to identify ways to improve job
satisfaction.

【Examples of actions topromote a healthy workplace】

・Formulate and announce the Hankyu Hanshin HoldingsGroup’s Declaration on Employee HealthManagement (April 2018)
・15 group companies have been listed among the “Healthand Productivity Management” Organizations of 2021.
Large
enterprise
category(White 500)

Hankyu Corporation, Hanshin Electric
Railway, Itec Hankyu Hanshin

Largeenterprise
category

Hankyu Hanshin Properties, Hankyu Travel
International, Hankyu Hanshin Express,
Hankyu Hanshin Hotels,
Bay Communications

SME category(Bright 500)

Hankyu Hanshin REIT Asset Management

SME category

Kita-Osaka Kyuko Raikway, Chuo Densetsu,
Hankyu Taxi, Hankyu Hanshin Insurance
Services, Hankyu Mediax, Hanshin Cable
Engineering

・We listed as a constituent on MSCI Japan Empowering
Women Index (WIN) (July 2020)

MSCI https://www.msci.com/our-solutions/esg-investing・We are hiring more women and training them forleadership positions.

■Encouraging uptake of paternity leave
・Paternity leave has been improved.（January 2021︓
HHHD and Hankyu Hanshin Properties)■Special subsidiary, Assist Hankyu HanshinCo., Ltd., is creating employment
opportunities for people with disabilities.
・The subsidiary is increasing the employment rate ofpeople with disabilities by hiring them for the services it
provides (office work, workplace massages andcleaning).
・Assist Hankyu Hanshin was certified as a Monisu
Employer—an SME recognized as an employer of people
with disabilities (December 2020).

【Examples of actions to respect human rights
and prevent harassment】
・We run training courses for preventing workplacebullying and harassment.

72

Actions for priority issues (materiality matrix⑤)

SocialPriority issues : Empowering individuals【Examples of actions to cultivate tomorrow’s leaders】
・We are taking the following two actions as part of the Hankyu Hanshin Dreams and Communities for the Future
Project※.

Hankyu Hanshin Dreams and Communities
for the Future Challenge Troop
・Our group companies(railway, theaters, stadium,
hotels etc.) provide some of their facilities andemployees for summer camps that featureauthentic hands-on learning activities forelementary students.
・By the end of FY2020, morethan 17,000 elementary school
students were invited to a totalof 389 programs. (The program
was suspended in FY2021
because of COVID-19)

Hankyu Dreams and Communities Exciting
Work Program・To inspire children to think about their future
career, senior staff at Hankyu Corporation visit
elementary schools and tell the students about thecommunity-building vision of thecorporation’s founder, Ichizo
Kobayashi, and about the jobs
that support communities.
・As of FY2021, Hankyu
Corporation staff have visited a
total of 235 schools and talked toa total of 20,000 students.

・In recognition of these two projects, we were awarded the METI Minister’s Award (GrandPrix) in the 8th Career Education Award in FY2018 (Organized by Ministry of Economy, Tradeand Industry), and the top prize in the FY2021 MEXT awards for recognizing companies thatoffer activities for young people (Organized by Ministry of Education, Culture, Sports, Scienceand Technology)※Hankyu Hanshin Dreams and Communities for the Future Project
Since 2009, we have sought to promote the creation of towns and cities along our railway
lines that people will truly want to live in. To this end, we work with our stakeholders (groupcompanies, communities, employees) on two priority areas to create tomorrow’s communities:
environment-friendly development and human capital development.

73

《Reference》 SDGs Train 2020

SocialEnvironmental

This is how we commemorated the 10th anniversary of Hankyu Hanshin
Dreams and Communities of the Future Project:■SDG-themed rail livery: The Dreams and Communities trains(started operations in FY2020)・Three Hankyu trains and one Hanshin train wear a wrap advertising the SDG agenda.
（1）The advertising space inside the trains features over 200 kinds of posters that
communicate the SDG message. The posters were contributed by our groupcompanies, the UN, government ministries (MOFA & MOE), communities along
our railway lines, companies actively engaging in the SDG agenda, and citizen
groups.
（2）The SDG-themed trains ran on 100% renewable (in real terms) energy.
（3）To add momentum to the SDG agenda, the trains will remain in service until FY2026, when Osaka will hostExpo 2025.
・In September 2020, together with Tokyu Group, we launched on our respective networks services with a SDGthemed rail livery (“SDGs train 2020”) to raise awareness about the SDGs in West and East Japan.

SDG-themed rail livery: The Dreams and Communities trains

Japan SDGs Awards ceremony held at thePrime Minister's Office in December 2020

・In FY2020, this initiative was awarded the Signpost to the FutureAward at the 17 th Corporate Philanthropy Awards.（Organized by
Japan Philanthropic Association）
・In FY2021, we received the Special Award “SDGs Partnership Award”
at the 4 th Japan SDGs Awards. (Organized by the SDGs Promotion Headquarters at the Prime Minister’s Office)74

Actions for priority issues (materiality matrix)⑥

Governance

Priority issue : Robust governanceNotes: Regarding Corporate Governance Report,
please visit our website.

Actions to promote effective and transparent corporate governance
Established the Corporate Governance President Committee

FY2016

・Meets twice a year to discuss matters such as ensuring transparency of election and dismissal of
officers, communicating with outside directors, etc. (the committee meets biannually, and its membershipcomprises representative directors, standing auditors (standing Audit and Supervisory Committee
members since Jun 2020) and outside directors)

Started evaluating the effectiveness of the Board of Directors

FY2017FY2018・Regarding the management of the Board of Directors, directors are interviewed about whether
there is sufficient board accountability, whether board proceedings are appropriate, etc. (tomake the evaluation process more effective, interviews are now preceded by preliminary
questionnaires)

Scrapped the corporate adviser system
Resolved to discontinue anti-takeover measures Established compensation committee

FY2019FY2020

FY2021

・The committee ensures impartiality and transparency in the process of determining director compensation(including the specific amounts). (the committee meets annually, and its membership comprises the※chairman and outside directors)<Independent
officer ratio>
FY2017

5members/
19members
26.3％

FY20185members/
14members
35.7％

FY2020

Revised compensation structure

6members/
14members
42.9％

Changed corporate structure to that of a “company with an audit & supervisory board”

FY2021

・We decided to introduce a performance-linked stock compensation plan for the chairman and president tofurther motivate them to work toward our corporate value, performance, and share price. The stockcompensation will be delivered through a trust.

・We shifted to this structure to strengthen the oversight function of the Board of Directors and further
tighten corporate governance.
・As part of this shift, we increased the ratio of independent officers. Specifically, we have reduced the total
number of officers to 11, of whom 5 are independent outside directors (2 of them are female).

5members/
11members
45.5％

75

Ⅳ. Referential Materials(1) Progress in Each Project(2) Other76

Schedule for Each Project
（FY）

2019

2020

2021

2022

2023

2024

2026

●

Kita-Osaka Kyuko Railway Line
Extension Project

Umeda 1-1 Project

2025

Intended start of service●●

Complete phase I construction
Commencement of phase Ⅱ● Complete all construction

Complete phase Ⅱ construction●●

Umekita Phase Ⅱ Development Project

Scheduled full openings
in FY2028

Start construction

Scheduled time of advance openings●Start of service

Project to relocate Takarazuka HotelLOGiSTA, Logigross Ibaraki Saito(Project to construct
Saito Moegi Distribution Center)●Scheduled time of construction completion

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

●Opening

Development in public housing sitein Koshien●● Scheduled opening

Start construction
Development on west side of Hankyu
Nishinomiya Gardens

Scheduled start of construction ●CO・MO・RE YOTSUYA(Redevelopment Project for Area in
Front of JR Yotsuya Sta.)●

Hankyu Hanshin Ginza Building(Ginza 3-chome project)●

Scheduled time of construction completion and opening● Opening

Phased opening●Opening

77

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

MinohKayano Sta.

・Extension distance:

Approx.
1.3km

2.5 km, from Senri-Chuo Sta. to Minoh-Kayano Sta.

Act on Rail Tracks

National Route
171

・New stations:

Minoh-Semba Handaimae Sta., Minoh-Kayano Sta.

・Estimated project cost: ¥87.4 billion yen
・Demand: 45,000 people per day【Business scheme】
・Developer:

Kita-Osaka Kyuko Railway Co., Ltd. and Minoh City (development of infrastructuralcomponents between Minoh-Semba Handaimae Sta. and Minoh-Kayano Sta.)

MinohSemba
Handaimae
Sta.

・Operator: Kita-Osaka Kyuko Railway Co., Ltd.
・Funding program: Social capital development grant・Portion to be borne by Kita-Osaka Kyuko Railway Co., Ltd:
¥11.0 billion yen; Amount commensurate with profits【Schedule】
National Route 423（Shin-midosuji）

SenriChuo
Sta.

Railway Business Act

Approx.
1.2km

December, 2015: Obtained a license for railway business and acharter for railway track operations
December, 2016: Commencement of construction
FY2024: Intended start of service
SenriChuo
Sta.

Approx. 1.2km

Underground section

MinohSemba
Handaiｍae
Sta.

Approx. 1.3km

MinohKayano Sta.

National Route 423 Elevated section(Shin-midosuji）

National
Route 17178

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

Location

1-1 Umeda, Kita-ku, Osaka

Site area

Approx. 12,200 ㎡※1

Total floor space

Approx. 260,000 ㎡

Number of floors

38 floors above ground and 3 below groundPurpose

Department store, offices, halls, etc.

Planned total investment¥89.7 billion

Construction completion

Spring 2022

※1 Including the 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

June 2019

Begin phase Ⅱ construction

Autumn 2021

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

Spring 2022

Complete all construction※2 and open office floors※2 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

The rentable area is smaller than that planned during phase I.

①Dai Hanshin Building East Wing
②Shin Hankyu Building③Dai Hanshin Building West Wing(businesses operating)④Dai Hanshin Building West Wing(under construction)⑤Phase I (businesses operating)79

Umekita Phase Ⅱ Development Project【Background】
・JV9, which includes Hankyu Corporation, and Hankyu Hanshin Properties Corporation entered a consortium with fourother 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 this theme and set a
new standard in urban design for Kansai and even the whole of Asia.

【Outline of plan】<Private-sector zone specifications※1>
Zone

North zone

<Urban open space specifications※2>

South zone

Site area

Site area Approx. 15,720㎡

Approx. 30,430㎡

Total floor
Approx. 149,200㎡
space

Approx. 407,250㎡

Facilities

Total facility
12,500㎡
floor area
Facilities

Innovation facilities, hotel, MICE facilities, offices,
hotels, commercial
residence, others
facilities, residence, others

Dec 2020

AroundAdvance openings※3
summer 2024
FY2028How the area as a whole will look once completed

for Phase Ⅱ
approx.9.1ha

Construction in privatesector zones

Full openings※3 For some private-sector zone facilities
and part of the urban open space

Museum, experiential learning facilities, roofed open
spaces, restaurants, shops, others※2 This is the competitive tender submitted in May 2018.

※1 This is based on the urban plan resolved in April 2020 andthe application made in the second half of 2020.
Target area

<Schedule>

45,000㎡

North
zone

Green
space
Approx.
4.5ha

GRAND
FRONT
OSAKA

Park

（approx.7ha）

ParkWest Gate
Square.

Southzone
JR Osaka station(Undergroundstation)(based on the image released in December 2020;
subject to change)
80Project progress along other line-side areas①
In order of
opening date

Project to relocate
Takarazuka HotelLOGiSTA, Logigross Ibaraki Saito(Project to construct Saito Moegi Distribution Center)

A zoneLocation

1-33, 1-chome Sakaemachi,
Takarazuka, Hyogo

Site area

Approx. 12,300㎡

Total floor space

Approx. 23,000㎡

Number of floors

5 floors above ground and 1 below
groundPurposerooms (200rooms)
party hall (4 halls)
restaurant (4 facilities)

Scheduled opening June 21, 2020

B zone1-chome, Saito Moegi, Ibaraki,(In the Sanroku Line area of the eastern section of Ibaraki City’s
International Culture Park ‘Saito’)A zone︓Approx. 51,000㎡(※)
B zone︓Approx. 16,000㎡(※)
A zone︓Approx. 116,000㎡(※)
B zone︓Approx. 31,000㎡(※)
A zone︓5 floors above groundB zone︓4 floors above groundlogistics facilities（A zone︓large multitenant logistics facility［High-tech facilities designed to be used by multiple tenants］、
B zone︓ multitenant logistics facility［Box-type facilities that can be leased in one building or split into
2 to 4 tenants］）

End of May, 2021(scheduled completion)※ Includes the portion belonging to our partner81

Project progress along other line-side areas②
In order of
opening date

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

Location

2-1, 4-chome Kanocho, Chuo-ku, Kobe

Site area

Approx. 7,100㎡

Total floor
space

Approx. 34,300㎡

Number offloorsEast wing︓29 floors above ground and3 below groundWest wing︓1 floor under railway station

Purposehotel “remm plus Kobe Sannomiya”, offices,
commercial facilities ”EKIZO Kobe Sannomiya,railway station

Scheduled
opening

Commercial facilities : EKIZO Kobe Sannomiya(some sections with 2 floors above ground / basement level)

Hotel : remm plus Kobe Sannomiya

April 26, 2021
82

Project progress along other line-side areas③
In order of opening
date

Development in public housing sitein Koshien
Structure to be built

Development on west side of Hankyu
Nishinomiya Gardens

Koshien
Stadium

Location

58 Koshien-cho, Nishinomiya, Hyogo

544 Takamatsu-cho, Nishinomiya, Hyogo

Site area

Approx. 3,200㎡

Approx. 3,000㎡※

Total floor space Approx. 5,000㎡

Approx. 18,300㎡※

Number offloors3 floors above ground

14 floors above groundPurposeThe Museum Of Hanshin Koshien Stadium, commercial facilities, offices,
commercial facilities
rental housing

Scheduled
opening

March 2022

September 2023

83

Project progress in the Tokyo metropolitan areas
In order of opening
date

CO・MO・RE YOTSUYA

Hankyu Hanshin Ginza Building(Ginza 3-chome project)(Yotsuya Station District Redevelopment Project)

Location

1-chome Yotsuya, Shinjuku-ku, Tokyo

3-chome Ginza, Chuo-ku, Tokyo

Site area

Approx. 17,900㎡※

Approx. 310㎡

Total floor space Approx. 139,600㎡※

Approx. 2,900㎡

Number offloors31 floors above ground and3 below ground

11 floors above ground and1 below groundPurposeoffice, commercial facilities, residence,educational services, public good, parking

commercial facilities

Scheduled
opening

February 2020 ~ Phased occupancy/opening
September 30, 2020 Opening

May 2020※ Includes the portion belonging to our partner.

84

Ⅴ. Referential Materials(1) Progress in Each Project(2) Other85

Consolidated Subsidiaries(As of March 31, 2021)
Urban Transportation
Railway
Hankyu Corporation
operations
Hanshin Electric Railway
Nose Electric Railway
Kita-Osaka Kyuko Railway
Kobe Rapid Transit Railway
Hankyu Hanshin Electric System
Railway Operation Hankyu
Hankyu Railway Service
Automobile
Hankyu Bus
Hanshin Bus
Hankyu Kanko Bus
Osaka Airport Transport
Hankyu Taxi
Hanshin Taxi
Osaka Hanshin Taxi
Hankyu Hanshin Motor Technology
Hankyu Driving School Hattori Ryokuchi

Haks Hanshin
Hankyu Commuterbus Management

Retailing
Other

Osaka Motor Technology (OMTEC)
Eki Retail Service Hankyu Hanshin
Hankyu Style Labels
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
KyokutoAdvanced Development
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
Hankyu Hanshin Properties Join
HANKYU HANSHIN LOGISTICS INDONESIAEntertainment
SportsHanshin Electric Railway
Hanshin Tigers Baseball Club
Hanshin Contents Link Corporation
P & P Hamamatsu
Wellness Hanshin
Mt.Rokko Cable Car & Tourism
Stage
Hankyu Corporation
Takarazuka Creative Arts
Takarazuka Stage
Umeda Arts Theater
Information and Communication Technology
Information and Hanshin Electric Railway
Communication Itec Hankyu Hanshin
Technology
System Giken
YMIRLINK
RworksNihon Protec
Mimamorume
Himeji Cable Television
Bay Communications
Hanshin Cable Engineering

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,DEUTSCHLAND,UK,NETHERLANDS
BEIJING,SHANGHAI,GUANGZHOU,HK,TAIWAN,KOREA,Southeast Asia,
SINGAPORE,THAILAND,MALAYSIA,PHILIPPINES,INDONESIA,VIETNAM,
INDIA : 18 companies)
HANKYU HANSHIN INTERNATIONALLOGISTICS SHANGHAIHANKYU HANSHIN LOGISTICS
INDONESIA

HotelsHotel
Hankyu Hanshin Hotels
management Hanshin Hotel Systems
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)86

Revenue from Operations and operating income as a FY2021
Management composition

Earnings structure(As of March 31, 2021)

Urban
Transportation

Hankyu Hanshin Holdings

Real EstateEntertainment

HankyuCorporation※

HanshinElectric
Railway※

Hankyu Hanshin
Properties
HankyuCorporation

HanshinElectric
Railway

Revenue from operations breakdown(FY2021)

Revenue fromOperations

19.1billion

Operating
Income-17.9billion

Hotels

Revenue from Operations¥568.9billion

Operating Income¥2.1billion

Operating Income Marginー

Hankyu Travel
International

Revenue fromOperations

85.6billion

Operating
Income2.3billion

Hankyu Hanshin
Express

Hankyu Hanshin
Hotels※ In the Umeda and line-side areas, Hankyu Corporation andHanshin Electric Railway will retain their real estate for leasing
and developing and work with Hankyu Hanshin Properties topromote community building efforts in connection with public
transport networks and local governments.

Revenue fromOperations

156.9billion

Operating
Income-5.1billion

Operating
Income Margin

TravelRevenue fromOperations

12.0billion

Operating
Income-7.4billion

Revenue fromOperations

188.4billion

Operating
Income28.9billion

Operating
Income Margin

ー

15.3%

Entertainment

Information andCommunication Technology

Revenue fromOperations

42.2billion-2.3billion

Revenue fromOperations

58.1billion

Operating
IncomeOperating
Income5.6billion

Operating
Income Margin

Operating
Income MarginーReal Estate

2.7%

Operating
Income Margin

0.4%

Urban Transportation

International
Transportation

Operating
Income Margin

International
Transportation

Consolidated Total

HotelsOperating
Income Margin

Information andCommunication
Technology

Travel■The Urban Transportation and Real Estate businesses
generate stable cash flows and account for approximately
60% of revenue from operations.（In FY2019 results,
approximately 60% of revenue from operations and 80%
of operating income)

9.6%

ー

87

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

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. （as of January 1,2020）（k㎡）(thousand)

Area

Population

Areas served by the Hankyu/Hanshin
line

1,318

5,625

Osaka Pref. (service areas)

449

2,694

Hyogo Pref. (service areas)

471

2,265

Kyoto Pref. (service areas)

398

667

Non-Hankyu/Hanshin Service Areas

26,033

14,564

Osaka Pref. (non-service areas)

1,456

5,903

Hyogo Pref. (non-service areas)

7,930

3,170

Kyoto Pref. (non-service areas)

4,214

1,815

Shiga Pref.

4,017

1,388

Nara Pref.

3,691

1,340

Wakayama Pref.

4,725

947

27,351

20,189

Areas served by the Hankyu and Hanshin lines

108

Kansai
Osaka Pref.

106

Hyogo Pref.
Kyoto Pref.

104（1991=100）

102
100
98
96
1991

1996

2001

2006

2011

2016

Total

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

1

Nishinomiya-Kitaguchi （Nishinomiya, Hyogo Pref.）2

Shukugawa（Nishinomiya, Hyogo Pref.)3

Osaka-Umeda, Osaka

4

Ranking Station（Area）

11

Takatsuki,
Takatsuki-shi（Takatsuki, Osaka Pref.）(Osaka, Osaka Pref.）

12

Esaka

（Suita, Osaka Pref.）Okamoto（Kobe, Hyogo Pref.）13

Yodoyabashi（Osaka, Osaka Pref.）5

Mikage（Kobe, Hyogo Pref. ）14

Takarazuka（Takarazuka, Hyogo Pref.）6

Ashiyagawa（Ashiya, Hyogo Pref.）15

Tsukaguchi（Amagasaki, Hyogo Pref.）7

Senri-Chuo（Toyonaka, Osaka Pref.）16

Sumiyoshi（Kobe, Hyogo Pref.）8

Kobe-Sannomiya,
Sannomiya（Kobe, Hyogo Pref.）

17

Kobe

（Kobe, Hyogo Pref.）18

Hommachi（Osaka, Osaka Pref.）9Tennoji（Osaka, Osaka Pref.）18

Fukushima（Osaka, Osaka Pref.）10

Ashiya（Ashiya, Hyogo Pref.）20

Nakatsu（Osaka, Osaka Pref.）Except for Tennoji (9),Yodoyabashi (13) andHommachi (18), all of
the top 20 stations areon Hankyu Hanshin
Holdings group lines

Source: A survey of prospective condominium purchasers regarding their preferred residential 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 30, 2020.

89Overview of Osaka-Umeda area①
Major rental properties
Property nameLeasable area
(1,000㎡) ※1（as of the end of March, 2021)
Number of floors

Completed213

41 floors above ground and2 below ground2012

Umeda Hanshin Daiichi
Bldg. (HERBIS OSAKA)

82

40 floors above ground and5 below ground1997

Osaka Umeda Twin
Towers South (Umeda 1-1
project Phase I)

58

13 floors above the groundand 3 below ground2018

Umeda Hanshin Daini Bldg.
(HERBIS ENT)

54

28 floors above ground and4 below ground2004

Hankyu Chayamachi Bldg.
(Applause Tower)

52

Umeda Hankyu Bldg.
(Hankyu Dept.Store・office
tower)

Hankyu Sanban Gai
Shopping Centre
Hankyu Grand Bldg.
Hankyu Terminal Bldg.
Hankyu Five Bldg.※2(HEP FIVE)
NAVIO Hankyu(HEP NAVIO)GRAND FRONT OSAKA※3
NU chayamachi

34 floors above ground and3 below ground
5 floors above ground and
39 2 below ground (partially 4
below ground)
32 floors above ground and36
3 below ground
18 floors above ground and27
4 below ground
10 floors above ground and20
3 below ground
10 floors above ground and2 below ground
38 floors above ground and14
3 below ground
9 floors above ground and12
2 below ground
16

1992
1969
1977
1972
1998
1980
2013
2005

※1︓Leasable area does not include areas for public use※2︓Jointly owned property with Hankyu Hanshin REIT Asset Management※3︓Jointly owned property with others (other than Hankyu Hanshin
REIT Asset Management)

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 Umeda 3-chome Project (Provisional Name)- Japan Post Holdings Co. Ltd.,/Osaka Terminal Building Co., Ltd.
④ (Provisional Name) Commercial Development Northwest of Osaka Station - West Japan Railway Company etc.
⑤ (Provisional Name) Umeda Sonezaki Project (UMEDA GARDEN) -Sumitomo Realty & development Co., Ltd.
⑥ Chayamachi B-2 District Redevelopment Project -TOKYU LAND CORPORATION Co., Ltd.

90

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

Trends in average vacancy rates amongsix main business districts in Osaka
（%）
16.00

（¥/3.3㎡）
18,00014.00
16,000

12.00
10.00

14,000
8.00
6.00

12,0004.00
10,000

2.00
0.00

2016

2017

2018

2019

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

2020

2021

8,000

2016
2017
2018
Osaka business areas (all)Minamimorimachi area
Senba area
Shinosaka area

Umeda area
Yodoyabashi-Honmachi area
Shinsaibashi-Namba area

(%)

2016

2017

2018

2019

Osaka business areas (all)

6.80

4.68

3.38

Umeda area

5.54

3.20

Minamimorimachi area

5.40

Yodoyabashi-Honmachi area

2020

2021

2019

(¥/3.3㎡)

2016

2.45 2.00 3.91

Osaka business areas (all)11,101 11,107 11,302 11,510 11,957 11,917

2.02

1.59 0.93 3.36

Umeda area

14,207 14,366 14,684 15,056 15,780 15,984

6.01

5.06

4.58 3.68 3.88

Minamimorimachi area

7.51

4.58

3.60

2.22 1.70 3.30

Yodoyabashi-Honmachi area

Senba area

8.81

7.46

5.00

3.47 3.54 4.96

Senba area

Shinsaibashi-Namba area

9.07

5.95

3.70

3.14 2.07 4.83

Shinsaibashi-Namba area

12,110 11,802 11,696 11,875 12,671 12,317

Shinosaka area

5.42

4.65

4.01

3.20 3.46 5.74

Shinosaka area

10,106 10,213 10,142 10,523 11,147 11,232(Reference)
Tokyo business areas (all)

9,408

2017

2020
2021
Umeda area
Yodoyabashi-Honmachi area
Shinsaibashi-Namba area

9,314

2018

9,249

2019

9,331

2020

2021

9,508 9,364

10,898 10,861 11,105 11,200 11,485 11,548
9,613

9,620

9,845 10,093 10,524 10,157(Reference)
4.34

3.60

2.80

1.78 1.50 5.42

Tokyo business areas (all)17,973 18,730 19,699 21,134 22,594 21,541(Comparison of average rents in March of respective years)
Source: Miki Shoji, “Office Data.”

91

Hotel network of the Hankyu-Hanshin-Daiichi Hotel Group
Directly managed hotels (Hankyu Hanshin Hotels) 22Hotels 6,868 rooms
Other (franchises, etc.)
Directly managed hotels
Dai-ichi Hotel Tokyo
Dai-ichi Hotel Annexremm plus Ginza
remm Tokyo Kyobashi
remm Hibiya
remm Akihabara
remm Roppongi
Daiichi Hotel Tokyo Seafort
Kichijoji Dai-ichi Hotel
Hotel new Hankyu Kyoto
remm Shin-Osaka
Hotel Hankyu International
Hotel new Hankyu Osaka
Hotel new Hankyu Annex
Umeda OS hotel ※Hotel Hankyu RESPIRE OSAKA
Hotel Hanshin Osaka
Hotel Hanshin Annex Osaka
Senri Hankyu Hotel
Takarazuka Hotelremm plus Kobe Sannomiya
remm Kagoshima※Hankyu-Hanshin Hotels are
entrusted operation

27Hotels 5,787 rooms

49Hotels
12,655 rooms（scheduled on 26 April, 2021)

Other(franchises, etc.)
Tokyo Dai-ichi Hotel Iwanuma Resort

Tokyo Dai-ichi Hotel Tsuruoka
Tokyo Dai-ichi Hotel Yonezawa
Tokyo Dai-ichi Hotel Shin-Shirakawa

Ginza Creston
Hotel Yaenomidori Tokyo
Ours Inn Hankyu
Dai-ichi Hotel Ryogoku
Dai-ichi Inn Ikebukuro
Dai-ichi Inn Shonan
Dai-ichi Inn Shinminato
Tokyo Dai-ichi Hotel Nishiki
Hotel Boston Plaza Kusatsu
Hotel Royal Hill Fukuchiyama
Amano Hashidate Hotel
Osaka Dai-ichi Hotel
Hotel Bay Gulls
Arima Kirari HotelRoyal Park Hotel Kurashiki
Hotel Ichibata
Kure Hankyu Hotel
Takamatsu Kokusai Hotel
JR Hotel Clement Takamatsu
JR Hotel Clement Tokushima

Kyoto,
Osaka,
Kobe

Tokyo
Tokyo

The Crown Palais New Hankyu Kochi

Tokyo Dai-ichi Hotel Matsuyama

Imabari Kokusai Hotel92