Forecasts for Fiscal 2014 Onward(Numerical Targets for Each Core Business in the New Segment Classification)

In order to facilitate further growth in each core business while improving enterprise value Groupwide, certain core businesses
shown below were restructured in April 2013. The numerical targets for each core business on the following pages list figures basedon the previous core business segments used until fiscal 2013 and the new core business segments for fiscal 2014 and fiscal 2016.

Core Business Restructuring (From 1st April 2013)
Previous

From fiscal 2014 onward■ Urban Transportation■ Urban Transportation

Railway operations
Automobile
Retailing
Advertising
Other■ Real Estate■ Entertainment and Communications■ Real Estate

SportsStage
Communication and media and other businesses
Advertising business of Hankyu CorporationHankyu Communications
Hanshin Contents Link
Itec Hankyu Hanshin and Bay Communications, etc.

Real estate leasing
Real estate sales and other business■ Entertainment and Communications
SportsStage
Communication and media and other businesses
Itec Hankyu Hanshin and Bay Communications, etc.

Eliminate intermediateholding company
system■ Travel and International Transportation■ Travel■ Hotels

Other/Group adjustment

Other/Group adjustment

Operating Income by Core Business (comparison of previous and new segments)(¥ billion)

Revenues from operations
Revenues
from operations(¥ billion)
250

191.1 191.5 191.9 192.9 192.7

40

32.2 32.3 31.0

30

32.3

29.4

230.3

233.0

193.6 [193.2][194.5]

34.7

34.9

[32.6]

200

34.4[31.7]

150

20

100

105002008 2009 2010 2011 2012 2013

2014

(Est.)

0(FY)

2016

(Plan)* Figures in the brackets refer to core businesses prior to restructuring.

Hankyu Corporation and Hanshin Electric Railway: Performance Forecasts (Fiscal 2014)
Fare revenues (¥ million)*Total
Total

Passenger volumes (thousands)*FY2014

FY2013Change%

FY2014FY2013

Change%91,61730,18891,14130,410476-221

0.5%
-0.7%

618,139
220,672

615,324
221,133

2,814-461

0.5%
-0.2%

Real Estate

Sold to an outsidecompany

Prior to Core Business Restructuring (Previous Segments)■■■ Operating income
Operatingincome(¥ billion)50* Sum of tier 1 and tier 2 operators for both Hankyu and Hanshin■ Hotels

Bookstore chain business (Book 1st.)

In fiscal 2014, we forecast revenues from operations to increase 18.9%, or ¥36.7billion, year on year to ¥230.3 billion. Despite revenue levels in the railway and busand taxi businesses expected to remain on par with the previous fiscal year, thisforecast takes into account the transfer of advertising operations and the Retailing
Business accompanying the restructure of core businesses. We forecast operating
income to edge up 0.4%, or ¥0.2 billion, to ¥34.9 billion because of the transfer of
the abovementioned businesses, despite expected hikes in power and fuel costs
caused by higher electricity rates as well as a forecasted increase in repair expenses.
For fiscal 2016, we project revenue levels in the railway and bus and taxibusinesses to be nearly on par with fiscal 2014, while in advertising operations,
we anticipate new revenue-generating media to be available following thecompletion of modernising works at Hankyu Umeda Station. As a result ofthese and other factors, we project revenues from operations to increase a1.2%, or ¥2.7 billion, to ¥233.0 billion compared with our forecasts for fiscal
2014. However, we project operating income to be almost on par with fiscal
2014 at ¥34.4 billion due largely to depreciation and amortisation expenses
accompanying capital expenditure in new rolling stock construction in therailway business, despite an expected increase in revenue.

HankyuHanshin■ International Transportation■ Retailing

Urban Transportation

After Core Business Restructuring (New Segments)(¥ billion)

FY2014 Compared with FY2016
Est. previous segments Plan

FY2013Results

FY2014Est.

Comparedwith FY2013

FY2016
PlanComparedwith FY2014

Urban Transportation

34.7

32.6

-2.1

31.7

-0.9

Urban Transportation

34.9

+2.3*

34.4

-0.5

Real Estate

37.0

36.0

-1.0

34.9

-1.1

Real Estate

36.3

+0.3

35.2

-1.1

9.9

-1.3

10.9

+1.0

Comparedwith FY2014

Entertainment andCommunications
Travel andInternational Transportation

12.6

11.2-1.4

12.7+1.5

Entertainment andCommunications

4.4

4.5

+0.1

5.1+0.6

Travel2.5—

2.6+0.1

Hotels

0.5

0.9+0.4

1.4+0.5

International Transportation

2.0—

2.5+0.5

Retailing

1.4

1.2

-0.2

1.20

Hotels

0.9—

1.4+0.5

Total of six core businesses

90.6

86.4

-4.2

87.1

+0.7

Total of six core businesses

86.4

—

87.1+0.7

Total operating income

87.9

84.0

-3.9

85.0+1.0

Total operating income

84.0—

85.0+1.0* The ¥2.3 billion increase recorded by Urban Transportation includes thetransfer of the Retailing Business and advertising operations.

In fiscal 2014, we forecast revenues from operations to increase 5.2%, or¥10.3 billion, to ¥207.0 billion, which factors in full-year rental income forthe Umeda Flagship Store of Hankyu Department Stores within Umeda
Hankyu Building as well as improved occupancy rates at the Umeda
Hankyu Building Office Tower. However, operating income is forecast todecrease 1.9%, or ¥0.7 billion, to ¥36.3 billion because of the projected
impact of intensifying competition on existing rental facilities.
For fiscal 2016, we project revenues from operations to rise 3.1%, or¥6.5 billion, to ¥213.5 billion compared with our forecasts for fiscal 2014.
This mainly assumes that the Umeda Hankyu Building and other development properties will enter a stable rental income phase as well as higher
earnings capability by strengthening real estate leasing management
models and cost effectiveness. However, we project operating income todecrease 3.0%, or ¥1.1 billion, to ¥35.2 billion compared with our forecasts
for fiscal 2014. In spite of high income levels anticipated in fiscal 2014
for the condominium subdivision business, this plan mainly reflects theprojected impact of consumption tax rate hikes in fiscal 2016 and lower
rental income following the commencement of the Umeda 1-1 Project.

■■■ Operating income
Operatingincome(¥ billion)
80

Revenues

196.7
179.8

207.0
[205.4]213.5 from operations(¥ billion)
200[212.2]

176.1

170.2 168.5

60

40

Revenues from operations

150

152.7
41.7
33.7

37.0 [36.0]36.3 [34.9]35.2

30.9
24.0

100

29.1
50

2002008 2009 2010 2011 2012 2013

2014

(Est.)

2016(Plan)0(FY)* Figures in the brackets refer to core businesses prior to restructuring.

Entertainment and Communications
In fiscal 2014, we forecast revenues from operations to decrease 2.7%,or ¥2.9 billion, year on year to ¥105.7 billion. In spite of an anticipatedincrease in revenue from broadcasting rights fees caused by a rise in thenumber of Hanshin Tigers home games, this forecast is mainly basedon the transfer of advertising operations to the Urban Transportation
Business and an expected decline in the number of theatrical performances other than those held at the Takarazuka Grand Theatre and theTokyo Takarazuka Theatre in the stage business. Operating income isforecast to fall 21.4%, or ¥2.7 billion, year on year to ¥9.9 billion primarily
due to the abovementioned decrease in revenue as well as the stage
business’ efforts to expand advertising to promote the centennial of theTakarazuka Revue in 2014.
For fiscal 2016, we project revenues from operations to climb 5.7%,
or ¥6.0 billion, to ¥111.7 billion, and operating income to rise 10.1%,
or ¥1.0 billion, to ¥10.9 billion from our forecasts for fiscal 2014. Theseplans mainly assume growth in the cable television business and information technology services along with lower expenses after expanded
advertising to promote the centennial of the Takarazuka Review runs its
course in fiscal 2014.

International Transportation■■■ Operating income

Revenues from operations

Operatingincome(¥ billion)
20

105.8
15

107.9

99.4

108.6

103.4

[111.7]

10.8 10.7 11.1

111.7

105.7

102.3

90

[12.7]

12.6
10

Revenues
from operations(¥ billion)[119.0]120

10.0 10.1[11.2]

9.9

10.9

60

30

5

■■ Operating income
Operatingincome(¥ billion)
5

Revenues from operations
Revenues
from operations(¥ billion)50

46.0433.1

36.5

37.8

36.7

36.0

38.6

33.9

340

30

2.5

2.3
2

1.8

1.7

1.5

2.0

20

1010.300-0.20

2008 2009 2010 2011 2012 2013

2014

(Est.)

2016(Plan)-10(FY)2008

20092010

2011

2012

2013

2014

(Est.)

2016(Plan)(FY)* D ue to the restructuring of core businesses, the Travel Business andInternational Transportation Business have been separated into independent
core businesses from fiscal 2014 onward. Consequently, between fiscal 2008
and fiscal 2013, actual figures for the International Transportation Businessare shown separately from those for the core Travel and International Transportation Business and exclude expenses shared by both businesses, such ascorporate expenses.

* Figuresin the brackets refer to core businesses prior to restructuring.
* From fiscal 2014 onward, Hankyu Railway’s transportation and advertising
operations will be transferred to the Urban Transportation Business.

TravelIn fiscal 2014, we forecast revenues from operations to increase 2.3%, or¥0.8 billion, year on year to ¥34.9 billion and operating income of ¥2.5billion, on par with favourable performance in fiscal 2013. Although
tourist numbers for such countries as China and South Korea areexpected to decline, these forecasts assume robust sales of mainstay
European travel packages as well as destinations including North andSouth America.
For fiscal 2016, we project revenues from operations to rise 5.7%, or¥2.0 billion, to ¥36.9 billion, and operating income to increase 4.0%, or¥0.1 billion, to ¥2.6 billion compared with our forecasts for fiscal 2014.
These plans assume continuous growth based on expansions in product lineups and sales channels, including upgrades in the reservation
environment.

In fiscal 2014, we forecast revenues from operations to decline 1.9%, or¥0.7 billion, year on year to ¥36.0 billion due to a steady fall in revenue
expected mainly in the first half amid continually severe operating conditions. However, operating income is forecast to improve 11.1%, or ¥0.2billion, to ¥2.0 billion primarily because of a gradual rebound in demand
expected throughout the year mainly in the ASEAN region and East Asia
as well as efforts to cut costs by improving operational efficiency.
For fiscal 2016, we project revenues from operations to rise 7.2%,or ¥2.6 billion, to ¥38.6 billion and operating income to grow 25.0%,or ¥0.5 billion, to ¥2.5 billion from our forecasts for fiscal 2014. Theseplans assume ongoing growth amid economic expansion in emerging
markets centred in Asia.

Hotels■■ Operating income

Revenues from operations

Operatingincome(¥ billion)
4

Revenues
from operations(¥ billion)
40

36.9
3

33.4

34.1

32.1

31.3
29.8

29.8

2.5

34.9
2.5

30

2.6
20

2

1.4

1.2

In fiscal 2014, we forecast operating income to jump 80.0%, or ¥0.4billion, year on year to ¥0.9 billion. Despite higher electricity rates, thisforecast mainly reflects an improvement in profit and loss following theelimination of unprofitable hotels during the previous fiscal year as wellas the contribution of full-year earnings from REMM Shin-Osaka, which
opened in the previous fiscal year.
For fiscal 2016, we project operating income to increase 55.6%, or¥0.5 billion compared with our forecasts for fiscal 2014 to ¥1.4 billion
mainly because of efforts to increase revenues of existing hotels andcost-cutting measures based on structural reforms.

■■ Operating incomeRevenuesfrom operations(¥ billion)
80

69.266.4361.0

65.2

0.7

2009

2010

2011

64.2

65.2
60

40

1.6

1.4
0.9

1

0.5

200.5

2012

-0.6

-10
2008

64.7

2

100

64.1

0

1

0.6

Revenues from operations

Operatingincome(¥ billion)
42013

2014

(Est.)

2016(Plan)0(FY)* D ue to the restructuring of core businesses, the Travel Business andInternational Transportation Business have been separated into independent core businesses from fiscal 2014 onward. Consequently, between
fiscal 2008 and fiscal 2013, actual figures for the Travel Business are shown
separately from those for the core Travel and International Transportation
Business and exclude expenses shared by both businesses, such as corporate expenses.

-2

2008

2009

-1.7

2009

2011

-0.3

2012

2013

2014

(Est.)

2016(Plan)(FY)* Food and drink businesses operated by the Retailing Business segment
have been transferred to the Hotel Business segment, as of fiscal 2011.