Hankyu Hanshin Holdings

https://www.hankyu-hanshin.co.jp/en/

Printed in Japan2019

We will work to realize our long-term vision by steadily
moving forward with our medium-term management plan.

In October 2006, the management integration ofHankyu Holdings and Hanshin Electric Railway
established Hankyu Hanshin Holdings. Since then, theHankyu Hanshin Holdings Group has worked in unison
to heighten the competitiveness of each business. At
the same time, the Group has used its collective
strength to increase overall profitability and growearnings. In conjunction with these efforts, we havesteadily improved our financial position.
However, the business environment of the Group is
likely to change significantly as the population of areas
served by its railway lines declines due to falling birthrates and an aging population, and as lifestyles and theconditions of everyday life evolve with the progressof technological innovation. Aiming to become acorporate group that can focus strongly on sustained
growth even in such an environment, we announced
the Hankyu Hanshin Holdings Group Long-Term
Management Vision for 2025 (fiscal 2026) two years
ago. Last year, we prepared a medium-term
management plan, which covers fiscal 2019 throughfiscal 2022 and sets out concrete actions for realizationof the long-term vision. At present, we are steadily
advancing measures based on the plan. The
accumulation of these measures will move us closer torealization of the long-term vision one step at a time.

1 Group Guide 2019

In addition, the Group will continue with concerted
efforts to fulfil its corporate social responsibility (CSR)
through social contribution activities,
environment-friendly business activities, rigorouscompliance, and thorough risk management.
Going forward—adhering to our Group Management
Philosophy—we will drive Groupwide growth whilebuilding relationships of trust with customers and local
communities. At the same time, the Hankyu Hanshin
Holdings Group will unite to advance initiatives thatmeet the expectations of all stakeholders. As we move
forward, we hope our stakeholders will continue tosupport us in our endeavours.
July 2019

Kazuo Sumi

Chairman and Representative Director, Group CEO

Takehiro Sugiyama

President and Representative Director2

Hankyu Hanshin Holdings Group Management Philosophy
Long-Term Management Vision for 2025 (Fiscal 2026)

What we try to achieve

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

In May 2017, we outlined the kind of group we hope to be, as well as thestrategic approach necessary for achieving this vision, in the Hankyu
Hanshin Holdings Group Long-Term Management Vision for 2025 (fiscal
2026). The long-term management vision targets 2025, which will be the20th year since the management integration of Hankyu Holdings andHanshin Electric Railway. While keeping abreast of changes in thebusiness environment, including population decline and technologicalinnovation, we will pursue four business strategies based on the twin
perspectives of business area and business model (“stock businesses” 1 or“flow businesses” 2 ).

Group Management
Philosophy
Long-Term
Management
VisionMedium-Term
Management
Plan

1 Stock businesses: Businesses that hold or use stock, property, and other fixed assets.
(Railway business, Real estate leasing business, Broadcasting and communications business, andHotel business, etc.)

What is important to us

Values

1 Customers First

2 Flow businesses: Businesses that, instead of holding large-scale stock, use business know-how, humanresources, brand assets, and other intangible assets.
(Real estate sales business, Sports business, Stage business, Information services business,
Travel business, International Transportation business, etc.)

Enhancing line-side areas and expanding fields

SloganEverything we do is for the customer. That’s where it all starts.
Sustainably enhance corporate value

2 Sincerity

Gain customers’ confidence by always being sincere.

Enhance daily life
(customer) value

3 Foresight & Creativity

Strategy1With our pioneer spirit and flexible thinking, we create a new value.

Stock businesses(Umeda and line-side areas)

Make our railway
the absolute best
among the Kansai networks

4 Respect for People

Everyone is absolutely invaluable to the Group.

Strategy

4Enhance social value

Strategy2

Stock businesses(Tokyo metropolitan area
and overseas markets)

Construct a stable revenue basein the Tokyo metropolitan area
and overseas markets

Enhance economic value

Strategy3

Flow businesses

Strengthen competitivenessby thoroughly pursuing
brand optimisationand differentiation

Make greater use of the Group’s collective strengthand develop new business fields

The Company We Hope to Be in the Long Term (Target management indicators for fiscal 2026)
One of our goals is to be a corporate group that can generate operating income of at least ¥100 billion even in the 2040s,
when demographic changes will affect businesses significantly. With this goal in mind, we have set out a long-term
vision calling for the realization of operating income of ¥120 billion, EBITDA* of ¥200 billion, and an interest-bearing
debt/EBITDA ratio of between 5 and 6 times by fiscal 2026 through the pursuit of strategies (1) through (4) above.
By achieving these targets, we will remain an industry leader among major private (non-JR) railway operators based on
indicators of profitability and financial soundness.
* EBITDA = Operating income + Depreciation expenses + Amortisation of goodwill
Profitability

Financial Soundness

Operating Income¥120
3 Group Guide 2019billionInterest-Bearing Debt/EBITDA Ratio

EBITDA¥200

billionBetween

5 6
and

times

4

1

The Group’s History
Survey of Preferred Kansai Residential Areas *Easy access to the Kansai area’s major cities and plentiful infrastructure for everyday life makeour line-side areas some of the most popular places to live in the region. The ability to enhancethe value of line-side areas is one of our strengths.

As well as connecting Osaka, Kobe, and Kyoto—the centre of Kansai’s economy—by railway, we have offered more
fulfilling lifestyles and benefited society by providing new services and contributing to community building in line-side
areas across a wide range of fields, such as the management of commercial facilities and office buildings, the Hanshin
Tigers professional baseball team, the Takarazuka Revue, and travel and hotels.
Our predecessors’ open mindedness encouraged progressiveness and an appetite for challenges—attributes that havebecome integral components of our corporate culture.

1907

Founding of Mino-Arima
Electric Railway Company(predecessor of Hankyu
Corporation) by Ichizo
Kobayashi

1910

Opening of Takarazuka
Line (Umeda–Takarazuka)
and Mino-o Line
(Ishihashi–Mino-o)

1924

Completion of Takarazuka
Grand Theatre

1948

Launch of services as Pan
American Airways agent

1964

Opening of Hotel new
Hankyu Osaka

1929

1973

Opening of Hankyu
Department Store, Asia’s
first railway terminal
department store

Opening of New Hankyu
Umeda Station as one of
the largest private railway
terminals in Japan2005

Establishment of Hankyu
Holdings, Inc.

Formation of Takarazuka
Girls’ Revue (currently
Takarazuka Revue
Company)

ShukugawaNishinomiyaKitaguchi* Survey by seven major real estate companies (September 2018)

3

rd

Umeda

2012

4th

Okamoto5th

Takarazuka

Completion of Umeda Hankyu Building,full opening of Umeda Flagship Store of
Umeda Department Store

2008

2016

Opening of Hankyu Nishinomiya Gardens

Opening of the Group’s first logistics
centre in the ASEAN region, inIndonesia

2019

10th anniversary of the
opening of the
Hanshin Namba Line

2017

2009

1995

Considerable damage to transportation and business infrastructureof Hankyu and Hanshin due to theGreat Hanshin Earthquake
Founding of Settsu Electric
Railway (renamed Hanshin
Electric Railway Co., Ltd.,in same year)nd

Changing of company
name from Keihanshin
Kyuko Railway Company
to Hankyu Corporation

1913

1899

2

st

1924

Opening of Koshien Stadium(currently Hanshin Koshien
Stadium)

1948

Launch of airline agency
business

1905
Beginning of operations
linking Kobe (Sannomiya)and outer Osaka (Deiribashi)

2006
Establishment ofHankyu Hanshin
Holdings, Inc.

Announcement of the Hankyu
Hanshin Holdings Group
Long-Term Management Vision
for 2025 (Fiscal 2026)

Beginning of operations of the
Hanshin Namba Line(between Nishikujo and Osaka-Namba)

2008 2009 2010

1985

2012

2010

Hanshin Tigers win Japan Series
for first time
Establishment ofHankyu-Hanshin-Daiichi Hotel Group

Completion of Umeda Hankyu
Building Office Tower
Completion of renovation of Hanshin
Koshien Stadium, opening of
the Museum of Hanshin Koshien
Stadium

2014

2014

2016

Centenary of the Takarazuka
Revue’s first performancein 1914

2017

2018

2019

2018

Completion of phase I of constructionof the Umeda 1-1 Project (Dai Hanshin
Building and Shin Hankyu Building
rebuilding project)

1933

Opening of Hanshin Mart at Hanshin
Umeda Station (currently Hanshin
Department Store)

1935

Establishment of Osaka BaseballClub (Osaka Tigers, currently
Hanshin Tigers)

5 Group Guide 20196

Group Overview

Performance Trends

Business Portfolio

Revenues from Operations

Operating Income(¥billion)(¥billion)

120

1.000

800

685.9

746.8

760.3

736.8

791.4

110.3

105.2

104.1

114.9

94.0

80

600

The Urban Transportation Business and the Real Estate Business generate stable cash flows, accounting for
approximately 60% of revenues from operations and 80% of operating income. A comparatively stable, high level ofcontribution from the Entertainment and Communications Business* is a feature of the Group that differentiates it fromother companies in the same business.

(As of 31st March 2019)
Revenues from Operations

400

40

200
0

Operating Income

Other
5.2％

2015

2016

2017

2018

2019 (FY)

0

2015

2016

2017

2018

2019 (FY)Core Businesses and Companies
We have core businesses in seven business domains: Urban Transportation, Real Estate, Entertainment, Information
and Communication Technology, Travel, International Transportation, and Hotels. Further, under the direction of theCompany, which supervises the Group’s management, these businesses are operated by six core companies: Hankyu
Corporation, Hanshin Electric Railway Co., Ltd., Hankyu Hanshin Properties Corp., Hankyu Travel International Co.,
Ltd., Hankyu Hanshin Express Co., Ltd., and Hankyu Hanshin Hotels Co., Ltd. Through these core businesses andcompanies, we will foster organic growth across the entire Group.

Core Business Segments
Hankyu Hanshin Holdings
Urban
Transportation

Real EstateEntertainment

Information andCommunication
Technology

TravelUrban
Transportation
28.5％¥791.4billionTravel4.2％

Entertainment
and Communications
15.1％

Profitability EBITDA
Hotels

Urban
Transportation
36.5％

Entertainment
and Communications
15.7％¥114.9billion

Real Estate
28.4％

Real Estate
41.3％* Figures for % are calculated based on the simple aggregate amount (including intersegment transactions) of each segment.
* In the fiscal year ending March 31, 2020, the Entertainment and Communications Business was reclassified into two businesses:
the Entertainment Business and the Information and Communication Technology Business.

Operating income
International
Transportation

Other
2.0％

Travel1.5％

Hotels7.8％
International
Transportation
10.8％

Hotels1.0％

International
Transportation
2.0％

Net income attributable toowners of the parent¥114.9 billion¥171.4 billion¥65.5 billion

Financialsoundness

Interest-bearing debt

¥877.1 billion

Interest-bearing debt/
EBITDA ratio

5.1 times

D / E ratio*

1.0 times* D/E ratio: Interest-bearing debt / Equity
HankyuCorporation*
Hankyu Travel
International

Hankyu Hanshin
Properties

Hankyu Hanshin
Express

Hankyu Hanshin
HotelsHanshinElectric Railway ** In the Umeda area and other line-side areas, Hankyu Corporation and Hanshin Electric Railway own realestate for leasing and development. At the same time, these companies coordinate with Hankyu Hanshin
Properties to advance town development in collaboration with municipal authorities, other organizations,and transportation networks.

7 Group Guide 2019

(As of 1st April 2019)8

Urban Transportation

Rail
Real Estate

Plans for New Railway LinesEntertainment

Aiming to heighten the value of line-side areas even further, Hankyu Corporation
is proceeding with three plans* for new railway lines that will enhanceconnectivity among the Kansai area’s gateways to the sky—Kansai International
Airport and Osaka International Airport (Itami Airport)—and Shin-Osaka Station,
which is to be one of the railway stations on the Linear Chuo Shinkansen Line.
These new railway lines will strengthen the railway network and ensure thatnumerous customers continue to prefer our line-side areas.

Urban Transportation

Transportation Advertising
We provide clients with “value-added
spaces.” For example, we have advertisinginside trains, railway station-based media
such as digital signage, and event spaces
for promotions inside railway stations.
Based on these media, we are able to offer
clients strategic mixes of transportation
advertising.

ESG

Retailing

ESG /Hankyu Hanshin Toho Group

Inside railway stations on Hankyu andHanshin railway lines, we operate
COLOR FiELD cosmetics and clothing
shops, Seijo Ishii supermarket
franchises, and other shops. In addition,
we partner with outside companies toprovide a wide selection of shops,
thereby offering greater convenience tocustomers who use our railway stations.

10Group Summary

9 Group Guide 2019

We are installing automatic platformgates to further increase the safety ofrailway station platforms. Kita-Osaka
Kyuko Railway Co., Ltd., has begun
the use of automatic platform gatesat Senri-Chuo, Ryokuchi-Koen, andMomoyamadai stations, and Hankyu
Corporation has begun using them at
the No. 3, No. 4, and No. 5 lines of
Juso Station. Further, plans call for completing the installationof automatic platform gates at Hankyu Kobe Sannomiya andHanshin Kobe Sannomiya stations by spring 2021 as well as
at Hanshin Umeda Station by the end of fiscal 2023.

Other / ESG

Hankyu Bus and Hanshin Bus offers
bus location services that enablereal-time checking of the status ofbuses operating on routes so that
customers can use bus services
conveniently and with peace ofmind. Further, Hankyu Bus, Hanshin
Bus, and Hankyu Denen Bus haveintroduced an in-house IC passenger
card, hanica, and all Hankyu Taxiand Hanshin Taxi cabs accept
various forms of electronic payment
to cater to diversifying payment
needs. We are promoting eco-driving techniques out of concern
for the environment and are working to expand our traffic
networks along railway lines, including through the operationof bicycle parking lots.

Creation of Safe, Reassuring Station
Environments

HotelsBuses & Taxis

Hankyu Corporation and Hanshin Electric Railway are increasing
convenience for customers by offering downloads of the TOKKApp and the Hanshin App, respectively. These apps include
information on train services and the locations of trains inoperation and provide push notifications if train services aredelayed or suspended.

International
Transportation

We provide a variety of safe, reliable, and comfortable transportation services by connecting
railways, buses, and taxis through a large network centred on two companies—Hankyu Corporation,connecting from the heart of Osaka-Umeda to Kobe, Takarazuka, and Kyoto; and Hanshin Electric
Railway, the only privately owned railway company connecting the two major points of Osaka City.
In addition, we are enhancing the value of line-side areas by realizing synergistic benefits throughthe integrated management of transportation advertising and retail businesses, which operatemerchandising facilities inside and near railway stations to increase their convenience.

To attract overseas visitors to Japan to our line-side areas andfacilities, we sell the HANKYU TOURIST PASS, which permits theuse of all Hankyu lines, and HANSHIN TOURIST PASS, which
permits the use of all Hanshin and Kobe Rapid Transit Railway lines.
Further, we heighten convenience for overseas visitors to Japan byproviding free Wi-Fi services. In addition, we have established Japan
National Tourism Organization (JNTO)-certified information centres
at Hankyu Umeda, Kawaramachi, and Karasuma stations and at
Hanshin Kobe Sannomiya and Nishinomiya stations for such visitors.
A popular choice for many visitors is the Kyo-Train, which operates
on the Hankyu Kyoto Line, features carriage interiors that set the tone
for trips to Kyoto by evoking traditional Japanese rooms, andprovides guidance announcements in four languages.
Hanshin Electric Railway and Taoyuan Metro Corporation of Taiwan
have concluded a tourism partnership agreement, and promotional
activities are being conducted reciprocally to encourage tourists tovisit each company’s region. Also, mainly on the Hanshin Namba
Line, we are providing multilingual automatic broadcasts onboard
railcars.

Enhancement of Convenience

TravelConnecting railways, buses, and taxis to provide a variety oftransportation services that realize safety, reliability, and comfort

Initiatives for Non-JapaneseOverseas Visitors to Japan

Information andCommunication Technology* Naniwa Suji Rail Link: Line connecting JR Osaka Station North District’s Kita-Umeda
Station (provisional name) and Juso Station
Shin-Osaka Rail Link: Line connecting Juso Station and Shin-Osaka Station
Osaka Airport Line:
Line branching off from the Takarazuka Line to connect with
Osaka International Airport

Urban Transportation

Development

A rendering of the completed
Osaka Umeda Twin Towers South

TravelLeasing

Owning and Managing Numerous Commercial Facilities and Office Buildings andHelping to Develop Appealing Towns

HERBIS ENT

Hankyu Nishinomiya Gardens
HotelsWe have many commercial facilities and office buildings, which areprimarily in areas served by the Hankyu and Hanshin lines and include
the Umeda Hankyu Building, GRAND FRONT OSAKA, Hankyu Sanban
Gai Shopping Centre, HEP FIVE, HERBIS OSAKA/HERBIS ENT, andHankyu Nishinomiya Gardens. We own a total of over 1.9 million square
meters of leasing property*.
We are taking steps to heighten competitiveness and utilization rates.
For example, in 2015 the Group began the Hankyu Hanshin Odekake Card
service, which can be used in the Group’s main shopping centres.

International
Transportation

Focusing on building attractive towns and cities by railway lines, the Real Estate Business has
shared its growth with the Urban Transportation Business. We develop, lease, and administer
commercial facilities and office buildings that create vibrant communities. We also provide
quality residences that match each person’s lifestyle. Further, we are engaged in real estate fundmanagement, which combines the fields of real estate and finance. As the inheritors of urban
development DNA, we are turning future designs into reality.

Information andCommunication Technology

Helping create appealing towns andoffering enriched lifestyles

Entertainment

Real Estate

In Osaka-Umeda, we are advancing the Umeda 1-1 Project. We are proceeding with the
integrated rebuilding of the Dai Hanshin Building and the Shin Hankyu Building. In April 2018,
we completed phase I of construction and partially opened Hanshin Department Store’s Umeda
Flagship Store in June 2018. The building’s name is Osaka Umeda Twin Towers South.
With all its construction scheduled to be completed in spring 2022, phase II will comprise adepartment store zone, an office zone, and a conference zone. The office zone, which will be thelargest in western Japan, will have leasable floor space per storey of approximately 3,500 m2.
Moreover, to increase convenience for office workers, we will establish floors exclusively for
their use. Including both a large and a small multipurpose hall, the conference zone will be a hub
for disseminating business information and help invigorate business activities in the Umeda area.
Also, by conducting this rebuilding project in conjunction with the development of surrounding
public facilities, we are strengthening urban functions, improving disaster countermeasures,
creating public spaces, and giving the area an aesthetically appealing appearance.
Our other projects include reconstructing the east building of the Kobe Hankyu Building in
Kobe Sannomiya. As for the Tokyo metropolitan area, focusing on Tokyo’s five central business
districts, we are developing appealing urban areas through a variety of projects, such as thedevelopment of commercial facilities in Ginza.

Real Estate

Advancing Diverse Development Projects in Line-Side Areas and in theTokyo Metropolitan Area

* As of 31st March 2019

Sales

Other / ESG

Offering Homes that Realize Customers’ Dreams Mainly through Sales Under the
Geo and Hapia Brands

Geo Grande Motoazabu

Hapia Garden Kobe Takamaru

Support for New Industry Creation

Overseas Sales

Leveraging our track record in Japan,
we are participating in projects for thedevelopment of houses for sale in fivecountries*: Thailand, Vietnam, thePhilippines, Indonesia, and Malaysia.
Through these projects, we willaccumulate know-how in overseas real
Chaeng Watthana Project
estate projects and expand businesses. The
in Bangkok, Thailand

In 2014, we opened a membership officefor entrepreneurs. In the following year,
we established Umeda Start-up Fund No. 1,
which provides capital support. By
supporting entrepreneurs and the creationof new industries, we aim to cultivate aninternational business base that makes the
GVH#5
Kansai area—with Osaka-Umeda at its
centre—even more internationally competitive.

12

Group Summary

Assisting Start-Ups through GVH#5 Offices

ESG /Hankyu Hanshin Toho Group

Making Forays into Countries in the ASEAN Region* As of July 201911 Group Guide 2019

ESG

Geo brand condominiums are designed with quality from the customer’s
point of view and are built in neighbourhoods that people will grow only
more attached to over the years. Hapia brand housing is designed with aview to creating comfortable homes while taking into account changing
lifestyles. By aggressively developing these businesses in Japan—not only
in Kyoto, Osaka, and Kobe but also in Tokyo—we are able to offer“dreams come true” homes for customers.

Urban Transportation

SportsStage

The Hanshin Tigers have one of the most illustrious histories andtraditions and attract some of the highest attendances among Japan’s
top 12 baseball teams. By thrilling crowds, the team members’ playcontinues to contribute to the development of baseball in Japan.

The Takarazuka Revue is one of the most unique theatricalcompanies in the world, consisting of only actresses, and attracts
audiences with “inspiration” and “dreams.” The revue’s illustrious
history stretches back more than 100 years to its debut performancein 1914. The Takarazuka Revue not only performs in Japan but also
overseas. To date, the group has been on 27 overseas tours in 18
countries and regions. In autumn 2018, the Takarazuka Revue
performed in Taiwan for the third time. The revue’s performances
can also be seen via the Takarazuka Sky Stage dedicated channel,
the internet, and live broadcasts at cinemas.

Entertainment

Takarazuka Revue

Real Estate

HANSHIN Tigers

Entertainment

In addition to being famed as the home ground of the Hanshin Tigers,
Hanshin Koshien Stadium hosted the 90th anniversary spring highschool baseball tournament and the 100th anniversary summer highschool baseball tournament in 2018. Also, the stadium is the venue
for a range of major events, such as the Koshien Bowl, the final gameof the Japan University American Football Championship. August
2019 marks the 95th anniversary of the stadium, which along with
its history will continue to develop and have enduring appeal.

Umeda Arts Theater
Umeda Arts Theater Co., Ltd.,
operates two theatres, the Main
Hall, which has 1,905 seats, andthe 898-seat Theater Drama
City. As well as in-housemusicals and Takarazuka Revue
performances, Umeda Arts
Theater hosts a wide varietyof shows performed by othergroups, including plays,
concerts, and musicals.

International
Transportation

We enrich people’s lives by providing a varied selection of live entertainment through ourbusinesses. These include the sports business and the stage business, which are unique strengthsof the Group. The entertainment we offer centres on the Hanshin Tigers, a professional baseballteam with passionate fans throughout Japan; the Hanshin Koshien Stadium; and the Takarazuka
Revue, which continues adding to its storied history guided by a philosophy of “Modesty,
Fairness and Grace.”

Hanshin Koshien Stadium

Travel

Producing dreams and excitement for people

Information andCommunication Technology* As of July 2019

HotelsMusic
Other / ESG

Billboard
With a history of more than 100 years, Billboard is the most trusted music brand in
the world. Since concluding a license agreement for Japan in 2006, we have beendeveloping an array of businesses, including clubs.

ESG
ESG /
Hankyu Hanshin Toho Group

LeisureMt. Rokko
Known as one of Japan’s best night-view spots, Mt. Rokko is also popular with overseas
visitors to Japan. It offers a wide variety of leisure facilities including ski slopes, analpine botanical garden, an observatory, and a music box museum. In addition, theexhibition event platform Rokko Meets Art, which combines the nature and sceneryof Mt. Rokko with modern art, has received critical acclaim.

14

Group Summary

13 Group Guide 2019

Urban Transportation
Real Estate

Information Services

Itec Hankyu Hanshin Co., Ltd.

Primarily in line-side areas, these subsidiaries provide information infrastructurethat gives convenient access to television, internet, and telephone services.
Recently, we have begun offering higher-specification services, such as opticalinternet, and have been focusing efforts on the production of original community
channel programs rooted in local areas.

International
Transportation

We provide support for businesses in today’s highly networked information society and deliver peaceof mind and comfort in daily life through businesses in three areas. The activities of information
services businesses include developing systems related to social infrastructure and building andmaintaining e-commerce websites. In addition, broadcasting and communications businesses focus
on offering regionally based television, internet, and telephone services. Meanwhile, our safety andeducation businesses provide security services, programming education, and other services.

Bay Communications Inc. (Baycom)
Himeji Cable Television Co., Ltd. (WINK)

TravelUtilisation of ICT to Help Advance Society

Broadcasting and Communications

Entertainment

Information andCommunication Technology

Information andCommunication Technology

In addition to such internet businesses as e-commerce and website production, thiscompany uses capabilities fostered over many years to conduct a wide range ofsystems development related to social infrastructure, including railways and buildings.
Further, the company provides solutions related to clinical tests, diagnosis, digitalcatheters, and other areas of the medical field and offers contract services in suchareas as the development of high-quality software. By delivering assurance andcomfort in daily life and strengthening its solutions even further, the company aims
to roll out services nationwide.

SafetyHotelsMimamorume Co., Ltd.

Other / ESG

In the Mimamorume system, children carry wireless IC tags. When a child passes
through the school gates, their guardian is notified by email. Using this system incombination with monitoring cameras installed by municipal authorities, theMachinaka Mimamorume service provides notifications of the locations of thosethat require monitoring, such as children or senior citizens. In this way, we arehelping to create towns where people can live safely and confidently.

Education
ESG

Robot-Programming Classes

16

Group Summary

15 Group Guide 2019

ESG /Hankyu Hanshin Toho GroupWe conduct ProgLab robot-programming classes for children. Reflecting the level ofinterest in programming education, the number of students is approximately 4,000.
We also conduct classes and extracurricular classes at schools. Looking to the future,
we are developing children’s ability to realize ambitions and become leaders bycultivating reasoning, problem-solving, and creative skills.

Urban Transportation
Real Estate

Domestic & Overseas Travel

Offering Customers Unforgettable Journeys through Five Brands

Entertainment

Group Travel・MICE (Meetings, Incentives, Conferences, and Exhibitions / Events)

International
Transportation

Since our establishment in 1948, we have constantly emphasized the customer’s viewpoint andresponded to diversifying needs.
Through the expertise we have cultivated over the years, we offer a wide range of services frompackage tours to tailor-made and corporate group itineraries, as well as business travel services and tours
to Japan. We strive to deliver a relaxed and safe travel experience that touches customers’ hearts, while
focusing on quality.

TravelCreating travel itineraries that reflect customers’ desires

Information andCommunication Technology

Travel

Focused on guided tours, the Group’s Travel Business operates worldwide. Through arange of media that includes newspaper advertisements, magazines, the internet, andtelevision commercials and mail-order commercials, we sell travel packages under a varied
selection of brands. We have a lineup of five brands: Trapics, which celebrated its 30th
anniversary in 2019, Crystal Heart and Hanshin Koku Friend Tour are tour packages withrelaxed schedules, e-very markets plan-it-yourself
packages, and Royal Collection specializes inluxury custom-made travel packages. The Groupis also concentrating efforts on catering toincreasingly varied demand by creating new travel
packages based on cruises, domestic bus tours
using CRYSTAL CRUISER Sumire, hiking,community-based tourism, and other activities.

Providing Services Responding to Group Travel Needs

HotelsThe Company provides planning and proposal services for various types of grouptravel, ranging from inspection tours, employee leisure trips, training excursions,
events and conventions, and other types of group travel utilized by companies andother entities to school trips and other education-related travel. In these services, wecall upon the experience and insight gained throughout our long history to cater tocustomers’ diverse needs.

Travel for Visitors to Japan
Other / ESG

Conducting Tours of Japan with Exceptional Attention to Detail
We coordinate with our overseas offices in Europe, Singapore, and other locations
to meet the surging demand from overseas visitors to Japan. Our aim is to satisfy
visitors from Europe, Southeast Asia, and other parts of the world by catering
comprehensively to their needs.

ESG

Business Travel

We use our accumulated expertise to provide worry-free, comfortable business trips.
Our services include reservations and ticketing for all the world’s airlines, visa
applications for every country, hotel reservations after arrival at destination, andarranging interpreters. Moreover, through such services as business travel
management, which helps reduce costs and manage risks, we support customers’
overseas business development.

阪神トラベル・インターナショナル

18

Group Summary

17 Group Guide 2019

ESG /Hankyu Hanshin Toho Group

Supporting Relaxed and Comfortable Business Travel

Urban Transportation
Real Estate

International Air FreightAs Japan’s First IATA-Approved Cargo Agency,
Providing Reliable International Transportation Services

Entertainment

Hankyu Corporation has established solid brand power since entering theinternational air cargo business as Japan’s very first International Air Transport
Association (IATA) agency in 1948. We have earned the deep trust of customers
by providing integrated services covering the entire logistics process from start
to finish. Through coordination among our more than 100 bases in 28 countries
and regions, overseas subsidiaries, and affiliated agents, we provide rapid, safe,
door-to-door international transportation services.

Information andCommunication Technology

International Transportation
Door-to-Door Marine Transportation Services forboth Imports and Exports
In a similar manner to our approach in the international air cargo business, we
utilise a global network to provide international marine transportation as a
Non-Vessel Operating Common Carrier (NVOCC). We handle general containertransport (Less than Container Load & Full Container Load) as well as special
container transport, conventional vessel transport, and import / export customs
clearance and logistics consulting to provide optimal services that meetcustomers’ needs.

International
Transportation

By leveraging a track record and know-how garnered during more than 50 years as a pioneerin the development of transportation services overseas, we manage integrated air and sea
freight transportation and multinational transportation. By providing comprehensive services
that encompass customs clearance through to storage and management and logistics
consulting, we help customers optimize their supply chain management.

International Sea Freight
TravelDelivering optimal logistics and high-quality global services

Logistics
Hotels

Proposing and Achieving Optimal Logistics Solutions

Other / ESG

Highly knowledgeable logistics consulting experts propose optimal logistics
solutions using advanced IT. By comprehensively taking advantage of all our
logistics, from storage and management to distribution processing and delivery,
we are able to provide speedy and high-quality services in Japan and overseas.
In 2009, we were certified as an authorised warehouse operator under the
Authorised Economic Operator (AEO)* programme.

Customs Clearance
ESG

Appropriate and Speedy Customs Clearance

ESG /Hankyu Hanshin Toho GroupWe declare the quantity and contents of cargo to customs on behalf of thecustomer and obtain approval. We also possess a thorough understanding of thecustoms clearance process essential to the import / export of cargo. Our customs
clearance services are appropriate and speedy because we have business licenses
from six customs houses nationwide. We are a professional group consisting of
only qualified customs officers that operates properly and speedily based oncompliance. In 2017, we received certification as an authorised economic operator
under the AEO programme.

19 Group Guide 201920

Group Summary* A regulatory exemption that allows simpliﬁed customs clearance and processes and which is applicable to companies meeting a standard of cargo security management and complianceUrban Transportation

Hankyu-Hanshin-Daiichi Hotel Group

Expanding Our Hotel Chains Based on More than
90 Years of History and Tradition
Real Estate

Dai-ichi Hotel TokyoEntertainment

To reflect the needs of each era, we have developed a range of distinctive hotels.
These include Takarazuka Hotel, unveiled in 1926; Dai-ichi Hotel (currently Dai-ichi
Hotel Tokyo), whose opening in 1938 launched the business hotel category; and Hotel
New Hankyu Osaka, located in the heart of Osaka-Umeda. At present, the Group iscapitalizing on the hotel management know-how it has accumulated over many years
to support affiliated hotels. This assistance ranges from the branding of new hotels
through to the rebranding of existing hotels. In our role as a hotel chain operator,
we are expanding our hotel network and strengthening its marketing capabilities by
providing customer referrals from our sales offices as well as a range of other support
from the head office.

Hotel New Hankyu Osaka

Hotelshotels-Direct operation: 11Hotel New Hankyu Kyoto
remm Shin-Osaka
Hotel Hankyu International
Hotel New Hankyu Osaka
Hotel New Hankyu Annex
Umeda OS Hotel
Hotel Hanshin Osaka
Hotel Hanshin Annex Osaka
Senri Hankyu Hotel
Hotel Hankyu Expo Park
Takarazuka Hotel-Direct operation: 8Dai-ichi Hotel Tokyo
Dai-ichi Hotel Annexremm Hibiya
remm Akihabara
remm Roppongi
remm Tokyo Kyobashi
Dai-ichi Hotel Tokyo Seafort
Kichijoji Dai-ichi Hotel-Chain hotel: 5Ginza Creston
Ours Inn Hankyu
Dai-ichi Hotel Ryogoku
Dai-ichi Inn Ikebukuro
Dai-ichi Inn Shonan-Chain hotel: 6Hotel Boston Plaza Kusatsu(Biwako Lake)
Hotel Royal Hill Fukuchiyama & Spa
Amano Hashidate Hotel
Osaka Dai-ichi Hotel
HOTEL BAY GULLS (Kansai International Airport)
ARIMA KIRARI

More than

11,000
guest rooms

Tohoku Area

Shikoku Area

-Chain hotel: 4Tokyo Dai-ichi Hotel Iwanuma Resort
Tokyo Dai-ichi Hotel Tsuruoka
Tokyo Dai-ichi Hotel Yonezawa
Tokyo Dai-ichi Hotel Shinshirakawa

Chubu / Hokuriku Area
-Chain hotel: 3Toyama Dai-ichi Hotel
Dai-ichi Inn Shinminato
Tokyo Dai-ichi Hotel Nishiki (Nagoya)-Chain hotel: 6Takamatsu Kokusai Hotel
JR Hotel Clement Takamatsu
JR Hotel Clement Tokushima
The Crown Palais New Hankyu Kochi
Tokyo Dai-ichi Hotel Matsuyama
Imabari Kokusai Hotel

Kyushu Area
-Direct operation: 1remm Kagoshima

Chugoku Area
-Chain hotel: 3Hotel Ichibata
Kure Hankyu HotelTokyo Dai-ichi Hotel Shimonoseki
International
Transportation

We operate the Hankyu-Hanshin-Daiichi Hotel Group, which is one of Japan’s
leading hotel chain operator with 47 hotels and more than 11,000 guest rooms.
From comfortable hotels designed for a better night’s sleep to luxurious
hotels for enjoying the extraordinary, we offer the best in hospitality tailored toour customers’ needs.

47

Kanto Area

TravelJapan’s leading hotel chain operator

Kinki Area

Information andCommunication Technology

Hankyu-Hanshin-Daiichi Hotel Group: Listed Hotels (As of 1st July 2019)“remm” Hotels Offering a Good Night’s Sleep

HotelsLaunched in 2007, “remm” hotels are designed to create an environment in which thecustomer can enjoy quality sleep. Since the establishment of the chain’s inaugural
hotel in Hibiya, we have opened remm hotels in Akihabara, Kagoshima, Shin-Osaka,
Roppongi, and Tokyo’s Kyobashi area. In December 2019, we will open “remm+” asa premium iteration of the brand in Ginza.
A guest room at remm Roppongi

A New Brand: Hotel Hankyu RESPIREOther / ESG

In November 2019, in Yodobashi Umeda Tower we will open our first offering under a
new hotel brand, Hotel Hankyu RESPIRE OSAKA. Mainly targeting overseas visitors
to Japan, the hotel will consist entirely of guest rooms that accommodate two or more
guests, such as double, twin, and triple rooms.
With the holding of the Osaka-Kansai Expo decided, Osaka promises to grow evenfurther as an international tourism city. Located in the city’s prime Umeda area, the newhotel will comprise more than 1,000 guest rooms for overnight stays.

Hotel Hankyu RESPIRE OSAKAESGThe Ritz-Carlton Osaka

21 Group Guide 2019

La Baie (Restaurant)

22Group Summary

Besides the Hankyu-Hanshin-Daiichi Hotel Group, we manage a luxury hotel, The
Ritz-Carlton Osaka. The Ritz-Carlton chain is headquartered in the United States
and the chain’s first hotel in Japan has received high acclaim since opening. The
classical ambience created by timeless interior design coupled with sincere
hospitality and attention to detail give guests unique memories and a personalized
experience.

ESG /Hankyu Hanshin Toho Group“Home Away from Home”—Relaxing Ambience andHeart-Warming Hospitality to Welcome Guests

Urban Transportation

Other

Environmental
Preservation
Activities

Stations
Shopping

Sightseeing

Improving Local Communities andLiving Environments for Our Children
The Group has established a Basic Environmental Philosophy and Basic Environmental Policies,
which guide its environmental preservation activities. For many years, we have implemented
energy-saving measures with a view to helping prevent climate change. We are also advancing
initiatives to reduce waste and preserve the natural environment.

Information andCommunication Technology

Basic Concept

Stay
Spas

International
Transportation

Stadium
StagesMindful that global environmental preservation is a task facing all mankind,
the Hankyu Hanshin Holdings Group works for a sustainable society throughenvironmental activities aimed at handing down a sounder global and humanenvironment to the next generation.

TravelIn 2016, the Hankyu Hanshin Holdings Group and the H2ORetailing Group launched a common loyalty point service. The
loyalty point service is enabling us to enhance convenience forcustomers by leveraging our strengths in the Kansai area as aprovider of many different types of services and as an operatorof numerous facilities, which include supermarkets, shopping
centres, and department stores as well as theatres and a baseballstadium. In 2018, S-POINT became usable at shops in and near
Hankyu Hanshin railway stations and at 7-Eleven stores in the
Kansai area’s six prefectures. We aim to progressively expand
this loyalty point service in the Kansai area.

Entertainment

Offering the S-POINT Common Loyalty Point Service in the Kansai Area

Real Estate

ESG Initiatives

Sites
Curb Climate Change and Save Energy
Installing LED Lighting

Community Development and Cultivation of Environmental AwarenessWe participate in events that prompt people
to think about living sustainably and theglobal environment. These include theUmeda Yukata Festival, where festival
goers are encouraged to participate in thesymbolic sprinkling of water around thearea, and the “1 Million People Candle
Night@Osaka City” event, in which lights
in towns are turned off and candles lit.

24

Group Summary

23 Group Guide 2019

Installation of Solar Panels
We have installed solar panels at the Group’s
facilities, including the Hankyu Settsu-shi Station,
Hanshin Oishi Station, and the roof over the inner
field of the Hanshin Koshien Stadium. The electricity
generated by the panels is used by the facilities.

ESG /Hankyu Hanshin Toho Group

Aiming to help senior citizens have active lives in their local towns, thisday-care service specialises in providing half-day rehabilitation programs.
At present, we operate 15 centres in Hankyu and Hanshin line-side areas.
The centres use highly reliable rehabilitation equipment, which is the
only such equipment in Japan to have received accreditation in Germany.
In bright, spacious facilities, we offer emotional and physicalrehabilitation.

The employees of Nose Electric Railway Co.,
Ltd., and citizens’ groups volunteer to help
thin forests, which preserves forest environments. Also, the Group’s facilities are advancing such greening activities as the introductionof rooftop and wall greening.

ESG

Hanshin Ikiiki Day Service

We are progressively installing LED lighting at railway
stations and Group facilities along the Hankyu and Hanshinlines. The installation of LED lighting at undergroundsections along the Hankyu Kyoto Line, from Saiin Station to
Kawaramachi Station, has been selected by Japan’s Ministryof the Environment as a model project. By installing LED
lighting in 4,261 light fixtures and signs, we have reduced
a significant amount of CO2 emissions. As a result, we
received the 2014 Kinki District Transport Chief’s
Transport-Related Environmental Preservation Outstanding
Company Award.

Other / ESG

To help parents bringing up children in line-side areas, we have opened
after-school day-care centres at Hankyu Toyonaka,
Nishinomiya-Kitaguchi Station, and Ikeda stations.
As well as helping children development good lifestyle and study
habits, the centres utilize the Group’s facilities and networks to conduct
a variety of programs under four categories: society and work,
experiencing culture, experiencing nature, and manufacturing. At our
after-school centres, children feel at home, broaden their horizons, havefun, and develop.

Forestry Preservation andGreening

HotelsAfter-School Kippo

Preservation of the
Natural Environment

Urban Transportation

Diversity

Together with Stakeholders

Real EstateSocialWe are developing workplaces and a range of systems in accordance with the values of the Group Management
Philosophy, which calls for “respect for people.” In this way, we are providing support that enables all employees tomake maximum use of their abilities and to play important roles in our businesses.
Support for Flexible Work Styles

Hankyu Hanshin Dreams and Communities of the Future ProjectEntertainment

In light of the characteristics of respective Group companies’ businesses, we are
introducing systems that enable flex time work, the taking of annual paid holidays in halfdays, “no overtime days,” and other work styles.

Support for Those Combining Work with Childcare or Nursing Care

For over 100 years, the Hankyu Hanshin Holdings Group has grown with the local
community, primarily in areas along its railway lines, and built up relations of mutual
trust. To ensure that the Group will continue to exist and prosper over the next century
as a member of the local community, in April 2009 we launched the Hankyu Hanshin
Dreams and Communities of the Future Project as a community contribution initiative.

Information andCommunication Technology

We are developing various types of systems that allow employees to combine work andchildcare or nursing care with peace of mind and which they can use to suit their life
events or careers.

Empowerment of Women
The Group is building an organisation in which all employees can play important roles
regardless of gender. For example, we are hiring more women and extending the scopeof their work.

Basic Policy

Hankyu Dreams and Communities
Exciting Work Program(Hankyu Travel International Co., Ltd., Airserve, Inc.,
Hankyu Travel Support Co., Ltd., Hanshin Travel
International Co., Ltd., and Hops Co., Ltd.)

25 Group Guide 2019

This grant programme is exclusively for citizens’ groups
located along the Hankyu and Hanshin lines. We match the
donations of Group employees, which are collected throughdeductions from their salaries and other means. To date, wehave donated a total of ¥70.29 million to 129 organisations.
Accumulated Group
employee donations+

Matching amount from theCompany

Providing grants to citizens’ groups in line-side areas

Group AGroup B

Group CGroup DA Decade of Continuous Support Based on
Employee Donations
To mark the 10th anniversary of the Hankyu Hanshin Dreams
and Communities of the Future Fund in the current fiscal year,
we will supplement our existing provision of grants to citizens’
groups by beginning to provide grants in support of projects andbusinesses that are conducted by citizens’ groups and which arefocused on realizing the Sustainable Development Goals (SDGs)of the United Nations.

The Hankyu Hanshin Holdings Group’s Declaration on Employee Health Management
The Hankyu Hanshin Holdings Group believes that the mental and physical well-being of employees and theirfamilies remains the source of happiness and the cornerstone of the Group’s prosperous future. In addition, in orderto provide our customers with safety and comfort as well as dreams and excitement, it is paramount that we enable
everyone to fully demonstrate their diverse personalities and abilities in good health.
To achieve this goal, we will maintain high awareness of our own well-being and work with our colleagues in theworkplace and their families to promote good health. The Hankyu Hanshin Holdings Group declares that it will
actively support the well-being of each individual and strive to create a workplace environment in which all can live
and work in good health and with motivation. The Group will pursue these initiatives under the slogan “Hankyu
Hanshin Wellness Challenge.”
Takehiro Sugiyama
President and Representative Director
Officer in Charge of Health Management
Hankyu Hanshin Holdings, Inc.
April 2018

In February 2019, Hankyu Corporation, Hanshin Electric Railway, and Itec Hankyu
Hanshin in the large enterprise category and Hankyu Hanshin Insurance Services Co., Ltd.,in the SME (small and medium-size enterprise) category received recognition as “Outstanding Enterprises Engaging in Efforts for Health and Productivity Management*.”* The Certiﬁed Health & Productivity Management Outstanding Organizations Recognition Program was jointly
begun by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi. The program is a system for citing
companies that have outstanding health and productivity management. More speciﬁcally, the system recognizes
corporate measures that address the health issues of local communities or that support the health promotion
initiatives of Nippon Kenko Kaigi. Under the system, Nippon Kenko Kaigi recognizes companies annually.

26

Group Summary

We encourage our employees and members of the
public to participate as volunteers in themaintenance and restoration of Mt. Koya’s
Nyoninmichi and Choishimichi roads, which are“Sacred Sites and Pilgrimage Routes in the Kii
Mountain Range” that have been registered as a UNESCO World Heritage Site. The
roads were important pilgrimage routes to Kumano Kodo and to Mt. Koya.

Hankyu Hanshin Dreams and Communitiesof the Future FundThe Group Management Philosophy sets out “respect for people” as an important value, and we believe that the health of
employees and their families is the cornerstone of our future prosperity. In accordance with this value and belief, as wellas the principles of health and productivity management, in April 2018 we established the Declaration on Employee
Health Management with the aim of raising the health awareness of each employee and creating workplaces that offer
rewarding jobs. Based on this declaration, we are taking measures to maintain and improve the health of employees sothat they can fully realize their individuality and abilities.

ESG /Hankyu Hanshin Toho Group

Mt. Koya Road Construction Volunteer Activities

We are creating opportunities for the healthy developmentof ambitious children, upon whose shoulders the task ofbuilding the communities of the future rests.

ESG

Managers from Hankyu Corporation visit schools
and conduct classes focused on the various types
of jobs in towns as well as the town development
initiatives of the company’s founder Ichizo
Kobayashi. To date, we have provided approximately
11,000 children from 140 schools with anopportunity to learn about future career
opportunities.

Health and Productivity Management

Human capital development

Other / ESG

During the summer holidays, the Group uses itbusinesses, facilities, and personnel to offer primaryschool children opportunities to experience and learn
about a variety of real jobs. To date, more than
15,000 children have participated in 322 of ourprogrammes.

We have established a Groupwide system for promoting the employment of the disabled.

HotelsHankyu Hanshin Dreams andCommunities of the Future
Challenge Troop

Priority Areas

Employment of the DisabledInternational
Transportation

Social Contribution Activities of Each Group Company–– In fiscal 2019, 94 activities were undertaken.

As a Group with strong local roots, we are committed tosustainable community building with environment-friendly
developments that provide local residents with security,
peace of mind, and cultural enrichment.

Travel

We intend to promote thecreation of towns and cities
along our railway lines thatpeople will truly want to live in.

Environment-friendly development

Urban Transportation
Real Estate

Hankyu Hanshin Toho Group (As of 31st March 2019)

Remaining a Company that Customers Trust

Governance■ We shall respect shareholders’ rights and ensure equality.
■ We shall take into consideration the interests of shareholders and other stakeholders and cooperate with stakeholders
appropriately.
■ We shall disclose corporate information appropriately and ensure transparency.
■ We shall ensure that the Board of Directors performs its roles and duties appropriately and ensure advanced oversightand decision making.
■ We shall have constructive dialogue with shareholders with a view to sustaining our growth and enhancing corporate
value over the medium-to-long term.

■ Making decisions regarding the Group’s management policies and strategies,■ Deciding on the approval of the medium-term or annual management plans of all core businesses,■ Requiring timely submission of progress reports by operating companies, and■ Having Group companies obtain approval before taking actions that affect the Group’s management significantly(for example, investments above a certain threshold).

Appointment / Dismissal

Appointment / Dismissal

Appointment / Dismissal

Part-time: 5(including 3 External
Directors)

Group companies:
Group employees:
Group sales:

106 companies, 5 groups
22,654¥791.4 billion■ H2O Retailing Group
Under H2O Retailing Corporation, the group conducts business activities that include
a department store business, a food business, a real estate business, hotels andrestaurants, and a parcel delivery service.

Group companies:
Group employees:
Group sales:

61
8,793
¥926.9 billion

Audit & Supervisory Board

Audit

Standing Audit &Supervisory Board
Members: 2

Selection /Dismissal /SupervisionCorporate
Chairman & President
Governance Compensation
Committee
Committee
CallGroup Management
Committee

ReportReportExternal Audit &Supervisory Board
Members: 3
Cooperation

Group Auditing
Division

Participate(as observer)

Participate

Group Companies

Audit

ReportCooperation

Staff of Audit &Supervisory Board Members

Accounting
AuditorThis is a group centred on Toho Co., Ltd. The real estate business, which includes the
Shinjuku Toho and Hibiya Chanter buildings, provides consistent support to the film
production, distribution, and promotion and theatrical production and promotion
businesses. The Toho Group provides entertainment to a wide range of customers andis committed to the production of animations, the production and sales of DVD
software, and the expansion of its network of cinema complexes.

Group companies:
Group employees:
Group sales:

39
3,179
¥246.3 billion

Notes:
1. In ﬁgures for the Hankyu Hanshin Toho Group, overlapping parts of companies that span multiple groups
have been eliminated.
2. The numbers of group companies include consolidated subsidiaries and equity-method aﬃliates. The
numbers of group employees and group sales include those of consolidated subsidiaries.

©2019 Legendary and Warner Bros. Pictures.
All Rights Reserved.

ESG /Hankyu Hanshin Toho Group

Call /
Report on
execution
situation

The Hankyu Hanshin Holdings Group consists of six core companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin
Properties, Hankyu Travel International, Hankyu Hanshin Express, and Hankyu Hanshin Hotels. The Group undertakes wide-ranging
development of core businesses in seven business domains: Urban Transportation, Real Estate, Entertainment, Information andCommunication Technology, Travel, International Transportation, and Hotels.

ESG

Accounting audit

Board of Directors

Consultation(Compensation)■ Hankyu Hanshin Holdings Group

Other / ESG

General Meeting of Shareholders

Consultation(Nomination)

H2O RetailingGroup■ Toho Group

Corporate Governance System

Full-time: 4

Toho Group

HotelsWith regard to the above matters, the Board of Directors, which includes external directors, makes approval decisions andreceives reports. Moreover, to undertake preliminary reviews the Company has established the Group Management Committee,
which includes representatives of the Group’s core businesses.
Further, to ensure transparency in the appointment and compensation of the Company’s directors and to facilitate
coordination among external directors, the Group has established the Corporate Governance Committee and the Compensation
Committee.
In addition, as part of efforts to strengthen its overall capabilities, the Company is strengthening the governance of funding.
Measures include centralising funding under the Company and distributing funds to operating companies within the limits set
out in business plans that the Company has approved.

202 companies, 5 groups
34,626¥1,964.6 billion

Hankyu Hanshin
Toho GroupInternational
Transportation

Hankyu Hanshin Holdings, Inc. (“the Company”), is a pure holding company, and the conduct of operations is basically the
responsibility of Group member companies. Hankyu Hanshin Holdings’ principal role is supervision and oversight of the entire
Group—meaning that these functions are separate from the conduct of Group businesses.
Through this system, the Company realises supervision and oversight and enhances the overall governance of the Group by:Group companies:
Group employees:
Group sales:

Hankyu Hanshin
Holdings Group

TravelCorporate Governance System

The Hankyu Hanshin Toho Group is a corporate group consisting of the
Hankyu Hanshin Holdings Group, the H2O Retailing Group, and the Toho
Group. The H2O Retailing Group conducts retail business and is mainly
involved in the department store business, which is centred on Hankyu
Department Store and Hanshin Department Store. The Toho Group develops
its businesses centring on film production, distribution, and promotion.

Information andCommunication Technology

Based on the Group mission and values set out in its Group Management Philosophy, the Company aims to remain a company
that customers and other stakeholders trust. To this end, the Company is strengthening and increasing corporate governanceby heightening the transparency and soundness of business management and ensuring appropriate, timely disclosure.
Reflecting this basic approach, the Company has established the policies below with a view to sustaining growth andenhancing corporate value over the medium-to-long term.

Entertainment

Basic Approach to Corporate Governance

27 Group Guide 201928

Group Summary

Directors (representative of each core business)Urban Transportation

Paid-in Capital:¥99,474 million (As of 31st March 2019)(Personnel and General Affairs Div.)

Travel[Overseas subsidiaries]• Tabicoffret Co., Ltd.

• Hankyu International China Co., Ltd.

• Nikkei Culture, Inc.

• Hankyu Travel International Europe S. R. L.

• Hankyu Travel Support Co., Ltd.

• Hankyu Travel International Singapore Pte. Ltd.

• Hankyu Hanshin Business Travel Co., Ltd.

• Hankyu Travel International Europe UK Ltd.

Information andCommunication Technology

19th October 1907
1-1, Sakaemachi, Ikeda-shi, Osaka 563-0056, Japan
1-16-1, Shibata, Kita-ku, Osaka 530-0012, Japan
Toho Twin Tower Bldg., 5F, 1-5-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006, Japan• Airserve, Inc.

Entertainment

Established:
Registered Head Office:Head Office:Tokyo Office:Real Estate

Hankyu Hanshin Holdings Group Summary (As of 1st July 2019)• Hanshin Travel International Co., Ltd.
• Hops Co., Ltd. (Hankyu Overseas Product Sales)[Representative offices]• Honolulu Liaison Office• Ho Chi Minh City Liaison Office• Hankyu Hanshin Express (Thailand) Co., Ltd.

• Nishiyama Driveway Co., Ltd.
• Nose Electric Railway Co., Ltd.
• Haks Hanshin Co., Ltd.
• Hankyu Advertising Agency Inc.
• Hankyu Kanko Bus Co., Ltd.
• Hankyu Commuterbus Management Ltd.
• Hankyu Style Labels CO., Ltd.
• Hankyu Sekkei Consultant• Hankyu Taxi Inc.
• Hankyu Driving School Hattori Ryokuchi• Hankyu Bus Co., Ltd.

• Hankyu Logistics (M) Sdn. Bhd.

• Hankyu Hanshin Express Mexico S.A. de C.V.

• Hankyu Hanshin Express Philippines, Inc.

• Hankyu Hanshin Express (Deutschland) GmbH• Hankyu Hanshin Logistics Philippines Inc.

• Hankyu Hanshin Express (UK) Limited• Hankyu Customs Brokerage Inc.

• Hankyu Hanshin Express (Netherlands) B.V.

• Pt. Hankyu Hanshin Express Indonesia• Intraspeed South Africa (PTY) Ltd.

• Pt. Hankyu Hanshin Logistics Indonesia• Intraspeed Arcpro (Kenya) Limited• Hankyu Hanshin Express (Vietnam) Co., Ltd.

• Intraspeed East Africa Limited• Hankyu Hanshin Express India Private Limited• Hankyu Hanshin Express (Beijing) Co., Ltd.

• Hankyu Hanshin Express (Myanmar) Co., Ltd.

• Hankyu Hanshin International Logistics• HOT Logistics Co.,Ltd.

(Shanghai) Co., Ltd.
• Hankyu Hanshin Express (Shanghai) Co., Ltd.

[Representative offices]• Hankyu Hanshin Express (Guangzhou) Limited• Milano Office• Hankyu Hanshin Express (HK) Limited• Dubai Office• Hankyu Hanshin Express (Taiwan) Ltd.

• Moscow Office• Hankyu Hanshin Express (Korea) Co., Ltd.

• Phnom Penh Office• Amanohashidate Hotel Co., Ltd.

• Dai-ichi Hotel Service Co., Ltd.

• Arima View Hotel Co., Ltd.

• Hanshin Hotel Systems Co., Ltd.

• Hankyu Hanshin Building Management Co., Ltd.
• Hankyu Hanshin Real Estate Investment Advisors, Inc.
• Hankyu Hanshin REIT Asset Management, Inc.

• Assist Hankyu Hanshin Co., Ltd.

• Hankyu Hanshin Business Associate Co., Ltd.

• Wellness Hanshin Inc.

• Hanshin Contents Link Corporation[Other organisations]• Ikiiki Life Hankyu Hanshin Co., Ltd.

• Hankyu Hanshin Financial Support Co., Ltd.

• Umeda Arts Theater Co., Ltd.

• Hanshin Tigers Baseball Club, Ltd.

• Takarazuka Music School• Ikeda Meitengai Co., Ltd.

• Hankyu Hanshin Insurance Services Co., Ltd.

• Takarazuka Creative Arts Co., Ltd.

• P & P Hamamatsu Co., Ltd.

• Takarazuka Revue Company• OS Co., Ltd.

• Hankyu Hanshin Point Co., Ltd.

• Takarazuka Stage Co., Ltd.

• Mt. Rokko Cable Car & Tourism Co.

• Kansai Telecasting Corporation• Hankyu Mediax Co., Ltd.

• Kobe Electric Railway Co., Ltd.

• Hanshin Gardenings Co., Ltd.

• Station Network Kansai Co., Ltd.

• Hanshin Kensetsu Co., Ltd.

• Chuo Densetsu Co., Ltd.

• Life Design Hankyu Hanshin Co., Ltd.

[Overseas subsidiary]• Hankyu Hanshin Properties Singapore Pte. Ltd.

Hotels• Himeji Cable Television Co., Ltd.

• Rworks, Inc.

• Bay Communications Inc.

• FM KITA• Mimamorume Co., Ltd.

• System Giken Co., Ltd.

• YMIRLINK Inc.

ESG /Hankyu Hanshin Toho Group• Itec Hankyu Hanshin Co., Ltd.

ESG

Other
• Hanshin Cable Engineering Co., Ltd.

• Kure Hankyu Hotel Co., Ltd.
• Keihin Service Co., Ltd.

[Other organisations]• Public Interest Incorporated Foundation Urban Innovation Institute• Hankyu Kyoueikai Medical Corporation• Itec Software Co., Ltd.

• Nihon Protec Co.,Ltd.

• Tokyo Rakutenchi Co., Ltd.
• Tottori Sakyu Kaikan[Other organisation]• Hankyu Construction Management, Inc.

• Public Interest Incorporated Foundation• Hankyu Sangyo

Hankyu Culture Foundation• Hankyu Hanshin Card Co., Ltd.

Group Summary

29 Group Guide 2019

International
Transportation• Hankyu Hanshin Express (Malaysia) Sdn. Bhd.

• Hankyu Hanshin Express (USA) Inc.

• Advance Development Co., Ltd.
• Umeda Center Building Co., Ltd.
• Osaka Diamond Chikagai Co., Ltd.
• Kyokuto Co., Ltd.
• Senri Asahi Hankyu Bldg. Management Co., Ltd.
• Hankyu Nigawa Sports Garden Co., Ltd.
• Hankyu Hanshin Estate Service Co., Ltd.
• Hankyu Hanshin Clean Service Co., Ltd.
• Hankyu Hanshin High Security Service Co., Ltd.
• Hankyu Hanshin Housing Support Ltd.

• Naruo Water World Co., Ltd.

Information andCommunication
Technology• Hankyu Hanshin Motor Technology Co., Ltd.
• Hankyu Hanshin Electric System Co., Ltd.
• Hankyu Railway Service Corporation• Hanshin Sharyo Maintenance• Hanshin Station Net Co., Ltd.
• Hanshin Taxi Co., Ltd.
• Hanshin Bus Co., Ltd.
• Hokushin Kyuko Railway Co., Ltd.
• Limousine Total Service Co., Ltd.

[Overseas subsidiaries]

Other / ESG

Entertainment• Hankyu Hanshin Express (Singapore) Pte. Ltd.

HotelsReal Estate• Hankyu Hanshin Express Southeast Asia Pte. Ltd.

• Hankyu Hanshin Logipartners Co., Ltd.

International
Transportation

Urban
Transportation• Alna Sharyo Co., Ltd.
• Iina Dining Co., Ltd.
• Ikeda LP Gas Co., Ltd.
• Eki Retail Service Hankyu Hanshin Co., Ltd.
• Osaka Airport Transport Co., Ltd.
• Osaka Hanshin Taxi Co., Ltd.
• Omtec, Inc.
• Kita-Osaka Kyuko Railway Co., Ltd.
• Kobe Rapid Transit Railway Co., Ltd.
• Tango Kairiku Kotsu Co., Ltd.
• Nishi Osaka Rapid Railway Co., Ltd.

• Skypacking Corporation

TravelCore
Companies• Hankyu Corporation• Hanshin Electric Railway Co., Ltd.
• Hankyu Hanshin Properties Corp.
• Hankyu Travel International Co., Ltd.
• Hankyu Hanshin Express Co., Ltd.
• Hankyu Hanshin Hotels Co., Ltd.