Hankyu Hanshin Holdings Group
Results Briefing Materials for
Financial Results for Fiscal 2024
(Ended March 2024)
May 21, 2024
Hankyu Hanshin Holdings, Inc.
9042 https://www.hankyu-hanshin.co.jp/en/

Contents
Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2024
(Ended March 2024)
Ⅲ. Long-Term Vision, Medium-Term Management Plan
(1) Long-Term Management Vision(2) Progress in Medium-Term Management Plan
Ⅳ. Forecasts for Fiscal 2025 (Ending March 2025)

･･･ 2
･･･ 8
･･･ 31･･･ 38･･･ 46

Separate Document: Reference Data
(1) Progress in Long-Term Vision and Each Strategy(2) Progress in Each Project(3) Sustainable Management(4) Steps Toward Further Improvements in Governance(5) Other
The information is also available on our corporate website:

https://www.hankyu-hanshin.co.jp/en/ir/library/presentations/

Business forecasts and other projections herein are based on information available at present and logical assessments and do not represent any promise by theCompany. The actual results may differ significantly from these projections due to various factors.

1

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2024
(Ended March 2024)
Ⅲ. Long-Term Vision, Medium-Term Management Plan
(1) Long-Term Management Vision(2) Progress in Medium-Term Management Plan
Ⅳ. Forecasts for Fiscal 2025 (Ending March 2025)2

Executive Summary (1)FY2024 performance (comparison with FY2023)

Revenue and profit increased on the back of a recovery in the demand for hotel accommodation in the Real Estate segment, a modest
recovery in passenger volume in the Urban Transportation segment, and strong performance in the Sports business of our Entertainment
segment following the Hanshin Tigers winning the league championship and the Japan Series, despite the effects of the temporary uptick indemand seen in the previous fiscal year in the Travel and International Transportation segments subsiding.

Operating revenue（￥ billion）

1,000.0+ 29.3

968.3

950.0

Other/
Adjustment

850.0International
Transportation

FY2022

FY2023Results
Results

TravelFY2023
FY2024
Results
Results

Information andCommunication
Technology

FY2023
FY2023
Forecasts
Forecasts(As(AsofofFeb.)
Feb.)

FY2023Results + 29.3

Entertainment

997.6

Real Estate

Results

995.0

Urban
Transportation

900.0

FY2022
FY2023Results（￥ billion）

FY2024
Results

Business profit（￥ billion）

110.0
90.0

105.0

+ 19.0108.3

89.4
Other/
Adjustment

Results

International
Transportation

FY2023Results
FY2022

TravelFY2024FY2023Results
Results

Information andCommunication
Technology

FY2022
Results

FY2023
Forecasts
FY2023(Asof
Forecasts(Asof Feb.)
Feb.)

Entertainment

FY2023Results

FY2023Results

Real Estate

50.0+ 19.0Urban
Transportation

70.0（￥ billion）

FY2024
Results

3

Long-Term Vision, Medium-Term Management Plan
Long-term management vision•••

In 2022, the Group established its “Long-Term Vision: Toward 2040”. While progress has been made in each strategic area,
environmental changes have been greater than anticipated, and are expected to continue to accelerate.
Amidst this changing environment, we view the ability to secure and maintain a stable capacity to generate capital and earn astable reputation in capital markets as vitally important to deliver “Safety and Comfort” and “Dreams and Excitement” - our senseof purpose as a Group – and to realize the rich lifestyle in line-side areas associated with this vision.
To shift in this direction, (as one means of doing this) we aim to “transform into a corporate group capable of delivering asustainable ROE of 8%”.*See P32–37 for more detail.

At-a-glance view of cash allocation•

We will look to increase growth investment, primarily focusing on the Real Estate segment, to scale up the business in FY2027
and beyond. This increased investment will be funded through additional borrowings and asset sales, in addition to retained
earnings.

Current Medium-Term Management Plan
period (FY2023 - FY2026)
Outflows
Inflows

Investment in maintenanceand renewal
240.0

Business Profit

Return to
Shareholders, Interest
expense,tax payment etc. 170.0

420.0

Asset sales

30.0

Additional borrowing
etc.
210.0

Growth investment

690.0

520.0

Domestic real estate(For sale property and equity)

Expansion⇗

Overseas real estate

Expansion⇗

Others（￥ billion）

Depreciation andAmortization

Ｅ ＢＩ Ｔ Ｄ Ａ

Ｅ Ｂ Ｉ ＴＤ Ａ

Depreciation and
260.0
Amortization

Next Medium-Term Management
Inflows

Increase ininvestment
leading toincreasedbusiness profit

Business Profit
4
Increase inbusiness profit ⇗Increase in businessprofit leading tofurther growthinvestment

4

Executive Summary (2)Overview of FY2025 full-year forecasts
Revenue growth is forecasted on the basis that the Real Estate segment will gain higher condominium sale income. Flat profit growth isexpected due to transitory factors impacting profit in the previous period (extraordinary demand driving professional baseball-related
sales in the Sport business, orders for support services for local governments in the Travel segment)（￥ billion）

Operating revenue（￥ billion）+77.4

1,100.0

Other/
Adjustment

International
Transportation

TravelInformation andCommunication
Technology

900.0

FY2024
Results

Entertainment

FY2024
Results

Real Estate

FY2025
Forecasts

Urban
Transportation

997.6

1,000.0

1,075.0
FY2025
Forecasts

2023
年度
予想

+ 77.4

Business profit（￥ billion）

120.0
110.0

Other/
Adjustment

International
Transportation

FY2024
Results

TravelFY2024
Results

FY2025
Forecasts-1.3

Information andCommunication
Technology

70.0Transitory factors, including
extraordinary demand for
professional baseball

107.0

107.0
Entertainment

80.0

Approx.
5.7+4.3

Real Estate

90.0

108.3

Urban
Transportation

100.0

+4.4
（￥ billion）
in real terms-1.3

FY2025
Forecasts

Shareholder returns (increased dividend)• FY2024 surplus allocation:

Regular annual dividend increased from ¥50 per share to ¥55 (¥25 interim dividend, ¥30 year-end
dividend). Shares will be repurchased with a cap of ¥7.1 billion.
• FY2025 surplus allocation (planned): Based on recent business performance, the annual dividend will be increased from ¥55 pershare to ¥60 (¥30 interim dividend, ¥30 year-end dividend).
*See P50 for more detail.
5

Response to the Takarazuka Revue Incident
Background•

On March 28, 2024, the Company, Hankyu Corporation and the Takarazuka Revue announced recurrence prevention measures to be
implemented by the Takarazuka Revue and elsewhere following the death of a member of the Takarazuka Revue in September 2023.
For details, please refer to the news release dated March 28.

••

On April 8, 2024, the Company held a briefing for investors on the proposed initiatives for further enhancing Group governance.
The briefing detailed steps to verify the causes of the incident from the Company’s perspective as the holding company, while
focusing on measures to strengthen governance functions for the Takarazuka Revue, further promoting initiatives set at“Empowering Individuals” across the Group, and strengthening the risk management structure.
For details, please refer to pages 40 to 47 of the appended reference data.

State of progress•••

Steady progress is being made on each recurrence prevention measure [stage performance schedule reviews (reducing the numberof stage performances and shows), development of structures and systems to strengthen organizational management and support,
and initiatives aimed at prompting awareness and behavioral reforms of Revue members and other related parties].
The advisory board established in Hankyu Corporation convened for the first time on April 25 to exchange opinions on current
issues and the future direction for measures to take. Looking ahead, we will look to incorporate the advice and proposals made byadvisory board members into recurrence prevention measures.
For the current fiscal year, the Group will look to establishing a more effective governance system while drawing on such advice andproposals from the advisory board to facilitate the development of an environment where Revue members, and all other personnel
involved in the operation of the Takarazuka Revue can dedicate themselves to creating the best possible stage performances withpeace of mind.
*For details on the progress made with the reform initiatives implemented at the Takarazuka Revue, please refer to the Takarazuka Revue website.
https://kageki.hankyu.co.jp/kaikaku/index.html (Japanese only)
6

Progress in Long-Term Vision and Medium-Term Plan
Progress in Long-Term Vision and Medium-Term Plan

See Reference Data P6–13 for progress in other projects.

Strategy 1: Make our line-side communities the absolute best among the Kansai networks

Hankyu reserved seat service “PRiVACE”• The Hankyu Kyoto Line will introduce
our reserved seat service “PRiVACE” in
July 2024.

Umekita Phase II Development Project(GRAND GREEN OSAKA)• Facility development preparations are steadily proceedingin the lead up to the advance opening in September 2024,
and the full-scale opening in FY2028.
• In FY2025 H2, Hankyu Hanshin Hotels will open a hotel here
under the upscale brand, Hotel Hankyu GRAN RESPIREOSAKA.

Strategy 3: Expand the coverage of our line-side business model

Expand Real Estate segment overseas• In September 2023, we
acquired the Neo Soho Malladjacent to the Central Park
Mall*, a major commercial
facility in West Jakarta,
Indonesia. We aim to bolster
the value proposition of bothsites through their integrated
management and operation.
*Acquired in September 2022

Neo Soho Mall (Commercial facility)(West Jakarta, Indonesia)• Following our entry into the U.S.
property market in FY2023, weadded two rental housing sites toour portfolio in FY2024, andacquired a commercial and officecomplex in Australia to add toour real estate leasing business.

60 Margaret (Commercial, Office)(Sydney, Australia)
7

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2024
(Ended March 2024)
Ⅲ. Long-Term Vision, Medium-Term Management Plan
(1) Long-Term Management Vision(2) Progress in Medium-Term Management Plan
Ⅳ. Forecasts for Fiscal 2025 (Ending March 2025)8

Consolidated Statements of Income(Summary)
FY2024
Results

Consolidated Subsidiaries
Equity-Method Affiliates
Total(¥ million)

FY2023Results

107 companies
13 companies
120 companies

FY2024
Results

Change99 companies +8 (9 companies increase, 1 company decrease)
10 companies +3 (3 companies increase)109 companies +11 companies

FY2023Results

ChangeRemarks

Operating revenue

997,611

968,300 +29,310 （ +3.0％ ）Operating profit

105,689

89,350 +16,338 （ +18.3% ） For details, please see P11.

[Business profit][108,310][89,350] [+18,960] [ +21.2% ]Non-operating income

19,402

12,145+7,256Equity in income of affiliates +6,289

Non-operating expenses

15,677

13,063+2,614

Interest expense +1,614

109,41388,432 +20,980 （ +23.7% ）Extraordinary income

33,138

7,927 +25,210

Contribution received for construction+28,813Extraordinary losses

58,306

21,348 +36,957

Loss on tax purpose reduction entry of
non-current assets +26,290
Impairment losses +11,604

67,801

46,952 +20,848 （ +44.4% ） Total income taxes -10,251

Ordinary profit

Profit attributable to owners ofparent（Reference）

FY2024
Results

FY2023Results

ChangeDepreciation and amortization

62,582

62,037+545

Financial balance (1) - (2)-8,588-7,495-1,092

Interest and dividend income (1)

1,794

1,272

+522

Interest expense (2)10,382

8,768+1,614

Impacted by the reversal of deferred tax assets andliabilities following tax code reforms (revision tocorporations subject to pro forma standard taxation)

Note: Business profit = Operating profit + Equity-method gains/losses related to overseas business investments
For details, please see next page.
（With regard to FY2023, we had no equity-method affiliates in our overseas businesses. Thus, for thisyear, “Business profit = Operating profit”.）

9Business Profit
 “Business profit” was introduced from the fiscal year ending in March 2024 as a new management metric for
the Group to reflect equity-method gains/losses accompanying overseas business investments alongside
operating profit.
 This is intended to more accurately track progress in overseas business growth initiatives (in Real Estatebusiness).

Business profit＝ Operating profit ＋ Non-operating profit/loss : Equity-method gains/losses related
to overseas business investments (in Real Estate business)
 Company-wide business profit
FY2024
Results

Operating revenue
Operating profit (1)Equity-method gains/losses
related to overseas business
investments (2)Business profit (1)+(2)FY2023Results

Change%997,611

968,300+29,310+3.0%

105,689

89,350+16,338+18.3%

2,621－+2,621

108,31089,350+18,960+21.2%

Note: With regard to FY2023 results, we had no equity-method affiliates in our overseas businesses.
Thus, for this year, “Business profit = Operating profit”.
10Consolidated Statements of Income (Breakdown for each business segment)
Key results in current period

Revenue and profit increased on the back of a recovery in the demand for hotel accommodation in the Real Estate segment, a modest recovery
in passenger volume in the Urban Transportation segment, and strong performance in the Sports business of our Entertainment segment
following the Hanshin Tigers winning the league championship and the Japan Series, despite the effects of the temporary uptick in demand seenin the previous fiscal year in the Travel and International Transportation segments subsiding.
(¥ million)

Operating revenue
FY2024
Results

FY2023Results

ChangeFY2024
Results

Operating profit[Business profit]
FY2023Results

ChangeUrban Transportation

203,260

185,581+17,679

34,25722,435+11,822

Real Estate318,254

282,049+36,205

49,826[52,447]

27,851[27,851]+21,975[+24,596]Entertainment

82,612

72,289+10,323

14,11912,622+1,496

Information and Communication
Technology

64,57960,355+4,224

6,135

5,917

+218

Travel

216,915

191,400+25,515

4,968

15,257-10,289

International
Transportation

100,300

163,269-62,969

223

8,381

-8,157

Other

60,12555,649+4,475

3,410

2,752

+658

Adjustment-48,437-42,295-6,142-7,252-5,866-1,385

Total

997,611

968,300+29,310

105,689[108,310]

89,350[89,350]+16,338[+18,960]

Note: Business profit = Operating profit + Equity-method gains/losses related to overseas business investments
For details, please see P10.
（FY2024 results for all segments besides the Real Estate business were calculated as “Business profit = Operating profit”.）

11Urban Transportation Results
Revenue and profit increased due to a recovery to a certain extent in the number of passengers in the Railway andAutomobile businesses, and the start of collection of barrier-free charges* at railway stations.
*All barrier-free charges will be used in the development of further barrier-free facilities in the future.

（\ million）

FY2024
Results

FY2023Results％

ChangeOperating revenue

203,260

185,581+17,679+9.5%

Operating profit

34,25722,435+11,822+52.7%[Breakdown by type of business]（\ billion）

Operating revenue
FY2024
Results

FY2023Results

Operating profit
Y on YFY2024
Results

FY2023Results

Y on Y

Railway

148.0

134.5

+13.5

37.1

26.5

+10.6

Automobile

43.7

40.2

+3.5

2.4

0.7

+1.6

Retailing

12.8

12.0

+0.8

1.4

1.0

+0.3

Others

10.0

8.9

+1.1

0.9

0.6

+0.2

Note: Not including head office expenses / adjustments.

12

[Urban Transportation] Railway Performance Results
Hankyu Corporation
Fare revenues (¥ million)*
FY2024
Results

FY2023Results

Passenger volumes (Thousands)*

ChangeFY2024
Results

FY2023Results

Change32,24429,900+2,343(+7.8%)

313,294

299,570+13,723(+4.6%)

Workers

28,14125,935+2,205(+8.5%)

221,032

210,671+10,360(+4.9%)

Students

4,103

3,965

+138

(+3.5%)

92,261

88,898+3,363(+3.8%)

Other tickets

60,67454,908+5,766(+10.5%)

284,626

272,065+12,560(+4.6%)

Total

92,91984,809+8,109(+9.6%)

597,920571,636+26,284(+4.6%)

Commuter pass

Barrier-free charge: 3.4 billion yen

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2024
Results

FY2023Results

Passenger volumes (Thousands)*

ChangeFY2024
Results

FY2023Results

Change12,01011,096+914(+8.2%)

120,734

114,974+5,759(+5.0%)

Workers

10,874

9,996

+877

(+8.8%)

96,911

91,956+4,954(+5.4%)

Students

1,136

1,099

+36

(+3.4%)

23,82223,017+805(+3.5%)

Other tickets

22,242

19,365+2,877(+14.9%)114,356

103,696+10,659(+10.3%)

Total

34,25330,462+3,791(+12.4%)

235,090

218,671+16,419(+7.5%)

Commuter pass

Barrier-free charge: 1.1 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
4) In FY2024, Hankyu Corporation and Hanshin Electric Railway introduced a barrier-free charge. This charge is added to regular rail fares and includedin the fare revenues from “Other tickets” and “Commuter pass: workers.”

13

[Urban Transportation] Transportation Revenue (Factors of YoY Change)
Hankyu Corporation

Hanshin Electric Railway

Transportation revenue (tier 1 + tier 2)

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

Totals for commuter passes andother tickets

Ｑ1

Ｑ2

Q3

Q4

Total

(¥ million)
Totals for commuter passes andother tickets

Ｑ1

Ｑ2

Q3

Q4

Total

FY2024 Results

23,084 22,880 23,885 23,068 92,919

FY2024 Results

8,604

8,725

8,524 8,398 34,253

FY2023 Results

21,220 20,271 21,863 21,454 84,809

FY2023 Results

7,597

7,598

7,561 7,704 30,642

Change+1,863 +2,609 +2,022 +1,614 +8,109

Change+1,007 +1,127+962 +694 +3,791

+13.3

+12.7

(%)

+8.8

+12.9

Factors of YoY Change (estimated)
・ COVID-19 impact (YoY change in impact)
・ Impact of collecting barrier-free charges
for railway stations

+9.2

+7.5

+9.6

+¥3,559 million+¥3,357 million
and others

(%)

+14.8

Factors of YoY Change (estimated)
・ COVID-19 impact (YoY change in impact)
・ Impact of collecting barrier-free charges
for railway stations

+9.0

+12.4

+¥2,568 million+¥1,120 million
and others

14

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

FY2014
31,29961,63092,929FY201531,54960,91092,459FY201632,272
62,92095,192FY201732,62862,72095,348FY201833,19863,137
96,335

99%

102%

103%

104%

104%

FY201933,456
63,05996,516FY202034,11961,88796,007

FY2021
28,09340,982
69,075

FY202228,65445,422
74,077

FY202329,90054,90884,809FY202432,24460,674
92,919

120%
110%

100%

103%

100%

100%
90%
80%

91%

FY2014 = 100%

74%

80%

96% when excluding
barrier-free charges
for railway stations

70%(FY) 2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

FY2022
10,62815,39726,026FY2023
11,096
19,36530,462

FY202412,01022,242
34,253

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

FY2014
11,00820,26031,269FY2015
11,107
20,286
31,394FY2016
11,372
21,03532,407FY2017
11,563
21,13632,699

104%

105%

107%

120%
110%

100%

100%

FY2018
11,797
21,63833,436109%

FY201912,02422,03034,054FY202012,327
21,66533,993

FY2021
10,476
13,72524,202

109%

110%
97%

100%
90%

FY2014 = 100%

77%

80%

83%

106% when excluding
barrier-free charges
for railway stations

70%(FY) 2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

15

Real Estate Results
Revenue and profit increased, driven by a recovery in demand for accommodations in the Hotel business, primarily frominbound visitors, in addition to an increase in sales of short-term returns rental condominiums in the Real estate sales
business, and robust growth in leasing activity in Osaka Umeda Twin Towers South and other properties in the Real estateleasing business, with additional growth in the Overseas real estate business.
（\million）

FY2024
Results

FY2023Results

Change％Operating revenue

318,254

282,049+36,205+12.8%

Operating profit

49,82627,851+21,975+78.9%[Business profit][52,447][27,851][+24,596][+88.3%][Breakdown by type of business]（\ billion）

FY2024
Results
Real estate leasing
Real estate sales andothersOverseas
real estate
Hotel

Operating profit[Business profit]

Operating revenue
FY2023Results

Y on YFY2024
Results

FY2023Results

Y on Y

127.1

126.2

+0.8

38.1

32.4

+5.7

153.8

137.4

+16.4

15.7

9.1

+6.6

8.6

3.2

+5.3

3.2
[5.8]

1.1
[1.1]

+2.1
[+4.7]

62.7

44.2

+18.5

4.1

-4.8

+8.9

Note: 1) Not including head office expenses /adjustments.
2) “Overseas real estate” is shown as an independent sub segment in the FY2024 results, and the results for FY2023 have also been changed as a point ofcomparison.
3) Business profit = Operating profit + Equity-method gains/losses related to overseas business investments（FY2024 results for all segments besides the Overseas real estate business were calculated as “Business profit = Operating profit”. ）16

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

2,400

1,200
Leasable area (left axis)

2,200
2,000
1,800
1,600
1,400
1,200

2,240

Umeda area only (right axis)

Acquired Lalaport Koshien(site)

Completion of
GRAND FRONT
OSAKA

960

1,000
900

1,720
810

800

Completion of Osaka Umeda
Twin Towers South PhaseⅡ

Start of work on PhaseⅠ
of Osaka Umeda Twin Towers South

Completion of Osaka Umeda Twin Towers South PhaseⅠ,
start of work on PhaseⅡ,
Partial sale of stake of GRAND FRONT OSAKA

2014

2017

2015

1,100

2016

GRAND FRONT OSAKA

2018

2019

2020

2021

700
600

2022

2023

2024

Osaka Umeda Twin Towers South（Complete construction in February 2022）

17

[Real Estate] Referential Information
Average daily rate (ADR) and occupancy rate *1

21,000Tokyo metropolitan area ADR (left axis)
Kansai area ADR (left axis)
Tokyo metropolitan area occupancy rate (right axis)
Kansai area occupancy rate (right axis)
95.4%
94.3%
93.9%
92.6%
92.2%

Total figures for FY2024 :Occupancy rate
89.0％（+15.7P from previous year）
Average daily rate (ADR) ¥17,645（+¥5,469 from previous year ）
90.9%
80.6%

18,00015,000

86.6%

88.6%

90.5%
17,221

15,21015,853
14,61912,000

90.8%

88.7%

16,665
13,5499,000

12,5506,000
ADR(¥)FY2016FY2017FY2018FY2019FY2020

FY2021

Non-Japanese guests as a percentage of overnight-stay guests
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

40.0%

12,782

40.9%

11,912

16.8%
11,8308,968
8,358
10,287FY2015

FY202220.0%
0.0%

FY2023

FY2024

Occupancy rate (%)

Tokyo metropolitan area

Kansai area

The total figures for FY2024 is 52.2％(+34.8P from previous year)
31.4%
22.7%

17.3%

FY2014

38.6%

38.1%

36.9%

37.0%

42.3%

45.6%

39.9%

0.4%

FY2016FY2017FY2018FY2019

45.4%

37.6%

25.0%

FY2015

71.2%

44.8%
33.2%

40.6%

60.0%

16,541

46.8%
28.9%

10,210FY201473.1%

16,167

13,748*2

11,61680.0%

20,41679.7%

15,44914,140

73.9%

90.9%
16,654*2

89.2% 100.0%
88.5%

FY20201.9%

FY20215.7%
0.3%

FY2022

11.4%

FY2023*1 The data omits the COVID-related temporary closures of some hotels.
*2 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.

FY202418

Entertainment Results
Revenue and profit grew despite the cancelation of certain Takarazuka Revue productions and a revised schedule in theStage business, driven by the strong performance of the Sports business following the Hanshin Tigers winning the league
championship for the first time in 18 years, and the Japan Series for the first time in 38 years.

（\ million）

FY2024
Results

FY2023Results％

ChangeOperating revenue

82,612

72,289+10,323+14.3%

Operating profit

14,11912,622+1,496+11.9%[Breakdown by type of business]（\ billion）

Operating revenue
FY2024
Results

FY2023Results

Operating profit
Y on YFY2024
Results

FY2023Results

Y on YSports

50.3

38.4

+12.0

11.2

7.4

+3.8

Stage

32.2

33.9

-1.6

4.8

6.8

-2.1

Note: Not including head office expenses /adjustments.

19

[Entertainment] Referential Information
Hanshin Tigers Home Game : Admission numbers＊1(CY)

Admissions (Thousands of people)

2016

2017

2018

2019

2020

2021

2022

2023

2,911

3,035

2,899

3,091

518

749

2,619

2,916

4

2

6

3

2

2

3

1

Ranking*1 “Admissions” indicates the actual number of admissions for a given season (calendar year).

Takarazuka Revue : Audience numbers
Number of shows : Takarazuka Grand Theater : 314（-54 from previous year, number of shows cancelled: 139）
Tokyo Takarazuka Theater : 386（-4 from previous year, number of shows cancelled: 70）(Thousands of people)

(CY)

2016

2017

2018

2019

2020

2021

2022

2023

Total

2,844

2,996

3,128

2,991

1,565

2,727

2,781

2,737

Takarazuka Grand Theater

1,169

1,191

1,207

1,106

485

904

925

823

Tokyo Takarazuka Theater

967

992

990

917

460

785

801

815

Other Theaters

586

619

598

572

200

428

474

482

Live screening*2
Live streaming*3

122

195

333

396

420

610

581

616

*2 Audiences who paid to see performance screened live in cinema*3 Audiences who paid to view livestream performance on home TV or device（beginning in FY2021）

20

Information and Communication Technology Results
Revenue and profit in the Information Services business increased due to an increase in orders in e-commerce and other
Internet-related businesses.

（\ million）

FY2024
Results

FY2023Results

Change％Operating revenue

64,57960,355+4,224+7.0%

Operating profit

6,135

5,917

+218

+3.7%

21

Travel Results
Although revenue continued to increase due to robust demand for domestic travel and a year-on-year increase ininternational travel, which is still in the middle of a recovery, profit declined due to a drop in orders for support services for
local authorities.

（\ million）

FY2024
Results

FY2023Results％

ChangeOperating revenue

216,915

191,400+25,515+13.3%

Operating profit

4,968

15,257-10,289-67.4%

Billings(¥ billion)

500.0

Domestic travel

Overseas travel

400.0
300.0

146.3

136.8

132.5

129.0

136.1

136.7

150.3

128.6

200.0
100.0

261.6

119.7
234.7

201.1

186.9

206.6

229.8

203.3

43.4

55.9
2.5

0.0
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

5.9
FY2022

34.1
FY2023117.5
FY2024* Figures for FY2014 to FY2015 represent the simple aggregate amounts from Hankyu Travel International and Hankyu Hanshin Business Travel.
The figures from FY2016 represent the aggregate amounts from the two companies as well as from Hanshin Travel International(offsetting intercompany transactions).
The figures from FY2024 represent the aggregate amounts from Hankyu Travel International and Hankyu Hanshin Business Travel (offsetting intercompany
transactions).

22

International Transportation Results
Revenue and profit declined in both air and ocean transportation due to stagnant logistics demand, particularly in East Asia,
caused by sweeping inventory adjustments made by customers, among other factors, and a relaxing of the tight supply anddemand conditions that persisted.

（\ million）

FY2024
Results

Operating revenue

163,269-62,969-38.6%

223

8,381-8,157-97.3%

141

128

TEU*-measured overseas export volume*TEU: ‘Twenty-foot equivalent unit’—a unit of cargo capacity（unit︓thousand TEU）
based on the volume of a 20-foot-long container

148
134

121

119

103

Note: Total handling volume for Japanese and non-Japanese companies
in the International Transportation Business segment

FY2024

121 119147 142

FY2023113

FY2022111

FY2021FY201795

FY2016FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017FY2016FY201598

FY201577

92

FY201493

136

FY2020

107

160
140
120
100
80
60
40
20
0

FY2019115（unit: thousand ton）

FY2018115

FY2014

160
140
120
100
80
60
40
20
0

％

Change100,300

Operating profit
Air Export Freight WeightFY2023Results

23

Consolidated Statements of Income (Non-operating Profit and Loss)(¥ million)

FY2024
Results

FY2023Results

ChangeOperating profit

105,689

89,350+16,338

Non-operating income

19,402

12,145+7,256

14,615

8,325+6,28915,677

13,063+2,614

10,382

8,768+1,614

109,41388,432+20,980

Equity in income of affiliates

Non-operating expenses
Interest expense

Ordinary profit

24Consolidated Statements of Income (Extraordinary Income and Losses)(¥ million)

FY2024
Results

FY2023Results

ChangeExtraordinary income and losses-25,167-13,420-11,746

Extraordinary income

33,138

7,927+25,210Contribution received for construction

31,3442,530+28,813

Other

1,794

5,397

-3,60358,306

21,348+36,957

Loss on tax purpose reduction entry of non-current
asset

31,277

4,986+26,290

Impairment losses

24,277

12,672+11,604

Other

2,751

3,689

-937

Extraordinary losses

25Consolidated Statements of Income (Profit attributable to owners of parent)(¥ million)

FY2024
Results

FY2023Results

ChangeProfit before income taxes

84,24675,012+9,233

Total income taxes

13,171

23,422-10,251

Income taxes—current

22,955

18,249+4,706

Income taxes—deferred-9,784

5,173-14,957

Profit71,074

51,589+19,485

Profit attributable to non-controllinginterests

3,273

4,636

-1,362

Profit attributable to owners of parent

67,801

46,952+20,84826

Consolidated Balance Sheets（\ million）

AssetsCurrent assets

Liabilities

FY2023Results

ChangeRemarks

513,368

428,082

Noncurrent assets

2,539,561

2,437,328+102,233 Property and equipment and intangible assets +29,063

Total assets

3,052,930

2,865,410+187,520

506,992

499,684+7,307

Current liabilities
Long-term liabilities

1,476,066

1,384,785+85,286 Land and buildings for sale +76,182
Investment securities +61,607+91,281

Debt

FY2024
Results
895,628

FY2023Results
822,595

Bonds

265,000

260,000+4,999－10,000-10,000

Commercial paper
Lease obligations

Total liabilities

Net assets

FY2024
Results

1,983,059

1,884,470

Shareholders' equity

929,754878,110+51,643 Payment dividend -12,113

Accumulated othercomprehensive income

48,483

28,692+19,790

Non-controlling interests

91,634

74,137+17,496

1,069,871

980,940+88,931

32.0%

31.6%

+0.4P

Total net assets
Equity ratio+98,589

Interest-bearing debt

Change+73,032

13,532

13,755-222

1,174,160

1,106,351+67,809

Profit attributable to owners of parent ＋67,801

Valuation difference on avairable-for-sale securities+8,60227

Consolidated Statements of Cash Flows(¥ million)
Cash flows from operating activities

FY2024FY2023Results

Results

123,513132,091

Profit before income taxes

84,246

Depreciation*1

62,582

Impairment losses

24,277

Decrease (increase) in inventories-61,32575,012 ［Note］*162,223 “Depreciation” in FY2023
12,672 includes amortization
recognized as extraordinary-29,286 losses related to the COVID-19

Cash flows from investing activities-141,320-113,216

Purchases of non-current assets-138,270

Purchases of investment securities*2-40,065

Proceeds from contribution received for construction

39,813

Cash flows from financing activities

28,461

Income (expenditure) from borrowings, corporate bonds, or similar items [net] *3

50,001Dividends paid

-12,113Purchase of treasury shares-3,476

Proceeds from share issuance to non-controlling shareholders on establishment of consolidated
subsidiaries*2-92,775 This includes purchase of sharesof subsidiaries resulting in-50,308 change in scope of
22,680 consolidation. Such purchases
created an outflow of ¥6,920-8,981 million in FY2024 and ¥28,636-6,104 million in FY2023.

-12,125 *3“Similar items” includes-53
commercial papers.

-

14,756

Effect of exchange rate change on cash and cash equivalents

1,242

1,904

Increase (decrease) in cash and cash equivalents

11,896

11,797

Cash and cash equivalents at beginning of period

41,37529,422536

155

53,80841,375

Increase in cash and cash equivalents resulting from inclusion of subsidiaries in
consolidation*4
Cash and cash equivalents at end of period*4This includes increase in cash
and cash equivalents resulting
from merger withunconsolidated subsidiaries.
Such acquisitions created no
cash flow in FY2024 and an
inflow of ¥155 million in FY2023.

28

[Reference] Consolidated Statements of Capital Expenditure(\ billion)

FY2024
Results(1)

Total capital expenditure

101.8

FY2023
Forecasts(As of Feb.)(2)= (1) - (2)FY2024
Forecasts(As of Oct.)
(3)

129.7

-27.9

129.7

-27.9

120.4

-18.6

63.0

+38.7

ChangeFY2024
Forecasts
Change(As of May)= (1) - (3)(4)= (1) - (4)ChangeFY2023Results

Change(5)= (1) - (5)[Breakdown for each business segment]
Urban Transportation

38.2

44.9

-6.7

46.3

-8.1

27.4

+10.8

Real Estate

47.9

59.7

-11.8

49.7

-1.8

24.5

+23.3

Entertainment

6.1

10.3

-4.2

10.6

-4.5

2.4

+3.7

Information and Communication
Technology

5.3

6.3

-1.0

6.2

-0.9

5.6

-0.3

Travel

0.6

1.7

-1.1

1.3

-0.7

0.7

-0.1

International Transportation

3.4

3.7

-0.3

3.2

+0.2

2.4

+0.9

Note：The figures announced in February 2024 did not include a segment breakdown.

29

[Reference] Consolidated Statements of Depreciation and Amortization, EBITDA*(\ billion)

FY2024
Results(1)

Total Depreciation and amortization

62.6[Breakdown for each business segment]
Urban Transportation

FY2024
Forecasts(As of Feb.)
(2)

62.7

Change= (1) - (2)Change= (1) - (3)FY2024
Forecasts(As of May)
(4)

ChangeFY2023Results

Change= (1) - (4)(5)= (1) - (5)

62.7

-0.1

63.7

-1.1

62.0

+0.5

26.1

26.6

-0.5

27.1

-1.0

26.2

-0.2

Real Estate

25.2

25.0

+0.2

25.0

+0.2

24.9

+0.3

Entertainment

3.7

3.8

-0.1

3.9

-0.2

3.7

-0.0

Information and Communication Technology

5.4

5.5

-0.1

5.7

-0.3

5.1

+0.3

Travel

0.9

1.0

-0.1

1.0

-0.1

0.9

-0.0

InternafionalTransportafion

2.0

1.9

+0.1

1.9

+0.1

1.8

+0.2

167.0

+6.2

156.0

+17.2

153.7

+19.5

170.0

-0.1

FY2024
Forecasts(As of Oct.)(3)

Total EBITDA*[Breakdown for each business segment]
Urban Transportation

173.2

+3.2

60.3

60.1

+0.2

58.4

+1.9

48.7

+11.7

Real Estate

77.6

71.9

+5.7

67.2

+10.4

52.7

+24.9

Entertainment

17.8

16.5

+1.3

15.6

+2.2

16.3

+1.5

Information and Communication Technology

11.6

11.8

-0.2

11.9

-0.3

11.1

+0.4

Travel

5.9

4.9

+1.0

1.4

+4.5

16.2

-10.3

InternafionalTransportafion

2.2

2.9

-0.7

4.4

-2.2

10.1

-8.0

*EBITDA = Business profit (Operating profit + Equity-method gains/losses related to overseas business investments) + Depreciation expenses + Amortization of goodwill
Note: The figures announced in February 2024 did not include a segment breakdown.

30

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2024
(Ended March 2024)
Ⅲ. Long-Term Vision, Medium-Term Management Plan
(1) Long-Term Management Vision(2) Progress in Medium-Term Management Plan
Ⅳ. Forecasts for Fiscal 2025 (Ending March 2025)

31

Long-Term Vision : Toward 2040
Under our long-term vision, our group will work as one to transform
into the organization we aspire to be
The slogan for the Long-Term Vision︓

Enhancing Line-side areas and expanding fields

among the Kansai networks

Expand the coverage of
our line-side business
model

Strategy Make our content as
2compelling as possible

Safe, comfortableurban life
Inspiringexperiences
High-quality businesssupportStrategy Increase market share by providing high4
value-added services

Hankyu Hanshin DX ProjectContribute to SDGs, 2050 carbon neutrality goal

We sustainably enhance
corporate value

Strategy3

Better customer
satisfaction

Make our line-side communities

Strategy
the absolute best
１

Contribute to asustainable society
and to be a
corporate groupthat grows
alongside thecommunity

Maintain financial health / Keep capital costs in mind

KPIs for FY2031
FinancialBusiness profit*
Interest-bearing debt
/ EBITDA ratio
ROE¥130.0 billion (plus something extra)
5 to 6
7% range over med-long term

Non-financial
Rate of CO2 emissions cuts from
FY2014 level:
Culpable incidents in our railway
business:
Employee satisfaction:% of women in management
positions:% of women among new hires:

-46%
Zero
Always better than inprevious survey
around 10%
Always more than 30%

Extra: Accumulated gains fromDX Project and other initiatives

2035–2040: Large project tostart driving further growthProfit mainly fromexisting businesses¥ 130.0 bn¥ 130.0 bn¥ 118.0 bn（FY2026 goal)
FY2026

FY2031* Business profit = Operating profit + Equity-method gains/losses related to overseas business investments (in Real estate)

AROUND
2035

AROUND
2040

32

Long-Term Management Vision (Background Considerations)
・In 2022, the Group established its “Long-Term Vision: Toward 2040” under the slogan “Enhancing line-side
areas and expanding fields”. While progress has been made in each strategic area, environmental changes
have been greater than anticipated, and are expected to continue to accelerate.
[Anticipated environmental
changes in the future]・Accelerated population decline
・Lifestyle changes《Business》 ・Difficulty in securing
・Rising costs・Internationalization of Kansai
human resources《Social》

・Our reason for being (mission) lies in delivering “Safety and Comfort” and “Dreams and Excitement” andenrich lifestyle in line-side areas.
・In order to achieve growth for the Group while contributing to local communities amidst theabovementioned environmental changes, it is vital that we look to actively develop new markets to secureand maintain a stable capacity to generate capital, while growing profits and improving capital efficiency
to earn a stable reputation in capital markets.

To shift in this direction, (as one means of doing this) we aim to“transform into a corporate group capable of delivering a sustainable ROE of 8%”.

33

Direction of Further Review Towards Achieving Reforms
・Achieving the kind of business transformation described on the previous page requires an approach inwhich we separate the areas where we should and shouldn’t focus on more to the allocation of capital,
human resources, and other management resources.
・This will require further review of the long-term management vision of the Group from a businessportfolio perspective, which will be used as a springboard for further discussion concerning the business,finance, and human resources challenges presented, and the future direction of the Group.
Business portfolio
perspectives

Develop a business portfolio (allocation of capital and human resources)
while accounting for market potential, competitive advantages of theCompany, synergies between businesses, and the target ROIC

Financechallenges

Businesschallenges

 Capital allocation that strives tobalance growth investment andfinancial soundness

 Establish market-based businessclassifications, and tailor initiatives toeach market
 Grow profits in ways that are notsimply an extension of previous
business activities, such as by adopting
a proactive approach to new markets

 Capital structure/ROIC review
considering the target ROE, etc.

Human
resource
challenge In the face of stern challenges
in securing human resources,continue to invest in humancapital as a source of growth Promote initiatives tied to
improving productivity
34

Addressing Finance Challenges (Aiming to achieve an ROE of 8x range in the future)
・Realizing a stable management base and enriching the lifestyles of line-side areas requires a high level ofapproval from capital markets. To achieve this, we will look to the use of leverage with a view toimproving ROIC.
・In order to access the stable financing needed requires the Company to establish a level of trust amongits creditors. To maintain a financial soundness (credit rating) that is among the highest for private
railways operators, we aim to achieve an interest-bearing debt/EBITDA ratio (hereafter, D/EBITDA) of 5x
range (or maintain in the 6x range should investment costs temporarily peak).
Raise ROIC while reviewing
appropriate D/E ratio and
D/EBITDA levels.
D/E
ratio

Further improve
ROE.

ROE
8%-9%

FY2020 (results)
D/E ratio: 1.0x
D/EBITDA: 5.9x

ROE
6%-7%

ROE
7%-8%

ROIC
35

Addressing Business Challenges (Future Direction)• In order to make our line-side communities the absolute best among the Kansai networks, even amidst continued
contraction in existing markets, we need to move ahead with plans for large-scale projects, such as new rail links(Naniwasuji Connection Line/Shin-Osaka Connection Line), and the Shibata 1 Project.
• As we move forward with these projects, we hope to grow profits in ways that are not just an extension of existing
business activities to meet the expectations of capital markets. To achieve this, we will look to delve deeper in existing
markets, with a focus on line-side areas (maximizing cash generation capabilities in existing markets), while considering
ways we can leverage the strengths and competitive advantages of the Group to identify growth markets and promote “aproactive approach to capturing new markets”.
Existing (mature) markets New (growth) markets(1)E.g.) Railway (existing lines), realestate (existing Umeda/lineside leasing activities)E.g.) Railway (new rail links), realestate (Shibata 1 Project)(3)

Maximize cash generation
capabilities in light ofchanges in the demand
structure

Initiatives to attract newcustomers to existing
business models

(2)

(4)

Projects to “make our lineside communities theabsolute best among the
Kansai networks”

Enter new growth markets(self-initiated)E.g.) Inbound travel(railway, hotels, etc.)E.g.) Overseas real estate36

Long-Term Vision for Business Expansion
We aim to grow profit, and secure and maintain a stable capacity to generate capital, as shown in theimage below.
Use “a cumulation of past efforts” as a springboard to “accelerate atransformation” with the aim of achieving growth that is not just an extension of
past business endeavors (non-consecutive growth)

Scale ofprofits

Existing (mature) markets

New (growth) markets

Maximize cash generation
capabilities in light ofchanges in the demand
structure

Initiatives to attract newcustomers to existing
business models

Projects to “make ourline-side communities
the absolute best among
the Kansai networks”

Enter new growth markets(self-initiated)

Entry into new
growth markets

Entry into business fields expected to grow

Expansion of business fields and areasusing know-how accumulated acrossbusinesses (overseas real estate, etc.)
Demonstrate the effects of projects intended to “makeour line-side communities the absolute best among the
Kansai networks” (new rail links, Shibata 1 Project, etc.)

Extension of existing business lines(Assuming existing businesses grow to theirmaximum potential)

Initiatives to attract new customers to existing businessmodelsIn existing businesses, maximize cash generation
capabilities in light of changes in the demand structure

・Shrinking of existing markets
・Investing in projects to “make our railway theabsolute best among the Kansai networks”

Future37

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2024
(Ended March 2024)
Ⅲ. Long-Term Vision, Medium-Term Management Plan
(1) Long-Term Management Vision(2) Progress in Medium-Term Management Plan
Ⅳ. Forecasts for Fiscal 2025 (Ending March 2025)

38

Time Period Covered and Context of the Medium-Term Management Plan
Time period covered•

Four-year period from FY2023 to 2026

Context•

The four-year period will be a time for adapting to the drastic external changes and steadily
returning to a pre-COVID growth trajectory. During this period, we aim to raise our profit level to¥100 billion as soon as possible.

•

We will also use the period to take concrete actions under our long-term strategic vision that willbuild sustainable profit growth. As part of this, we will increase investment in our overseas realestate business and condominium business to create a foothold for future growth.

•

In terms of the strategies and measures to be adopted in line with the long-term management
vision that are currently under review, this period will be positioned as a period for establishing thefoundations for growth towards achieving dynamic growth and an ROE of 8% in the future.

39

Roadmap to FY2026
Until FY2024, we worked to steadily restore profit in our existing businesses while drawing upon the outcomes of actions
to strengthen the revenue structure taken during the pandemic.
To gain the growth momentum necessary for achieving our FY2026 goal, we will deliver outcomes from our recent
business projects (Osaka Umeda Twin Towers South, overseas real-estate business).
Meanwhile, we will plant seeds for growth that will sprout in FY2026 and beyond (including more investment in ourdomestic real-estate business (for sale property and equity) and overseas real estate business, DX Project).
Profit (= Operating profit in FY2023 and earlier years, and Business profit* thereafter)(¥ billion)

FY2024120.0¥108.3 bn

100.0

FY2026¥118.0bn

Further growthBaseline profit:¥100.0 bn
95.2

80.0

Increase
investment
for growth

89.4
Covid impact¥100.0 bn loss

60.0
40.0

39.2

20.0
2.1

0.0
2019

2020

2021

2022

2023

2024

2025

2026

…

2031

(FY)

*Business profit = Operating profit + Equity-method gains/losses related to overseas business investments (in Real estate)
In FY2023 and earlier years, we had no equity-method affiliates in our overseas businesses. Thus, for those years, Operating profit = Business profit.

40

Business Profit Trends Toward FY2026
FY2026 profit targets compared with pre-Covid (FY2019) profit level(¥ billion)

Temporary factors,
including special demandfor professional baseball

114.9

108.3

Entmt &
Others
20.9

118.0
107.0

Entmt &
Others22.4

5.7
Entmt &
Others20.2

Entmt & Others
21.6

SpecialfactorIncludingoverseas realestate of 5.8 bn

RE
54.2

A market recovery, to a certain extent, in the International Transportation segment through to thesecond half, particularly in air transport➘ Decline in profit resulting from the tapering off of the special demand seen for professional
baseball / Drop off in profit in the solutions business in the Travel segment

segment/Increase in costs associated with reorganizing the structure of the
Takarazuka
Revue,
etc.terms when excluding temporary factors (a reaction to the special
Profitincreasein realdemand for professional baseball: -37; drop off in profit in the solutions business in theTravel segment: -20).

RE
60.8
RE
52.4

➚ Bigger scale in the Real estate segment (e.g. condominium business)

Increase in depreciation, power costs, and other miscellaneous expenses in the Urban Transportation+4.4 bn inreal-terms

RE
50.5（special factor*
included）＋¥4.4 bn inreal-terms

FY2024 results to FY2025 forecasts -¥1.3 bn

Including overseas realestate of 10.0 bn

FY2025 forecasts to FY2026 targets +¥11.0 bn
in railway operation revenue following a recovery in demand and the hosting of the World➚ Increase
Expo/Expand scale of the overseas real estate business/Expand scale of the ocean freight and logistics
business in the International Transportation segment

Business profit trends by core business

Includingoverseas realestate of 6.1 bn

FY2019FY2024FY2025

FY2026

Results

Results

Forecasts

Targets

114.9

108.3

107.0

118.0

Urban Transportation

43.5

34.3

32.6

34.8

Real Estate

50.5

52.4

54.2

60.8

Entertainment

13.4

14.1

8.8

10.2

Information andCommunication Technology

5.3

6.1

6.7

8.0

Travel

1.8

5.0

3.0

3.0

International Transportation

2.4

0.2

1.2

3.5

Total
[Breakdown for each business segment]

UT
43.5

FY2019Results

Operating Profit

UT
34.3

UT
32.6

UT
34.8

FY2024
Results

FY2025
Forecasts

FY2026
Targets

Business Profit

Business Profit

Business Profit*Special factor= Profit from sale of land for facilities in the eastern section of Saito(Ibaraki, Osaka Pref.)41

Image of Cash Flow Allocation
The approach to cash allocation in this plan is outlined below:
・Implement maintenance and renewal investments within the scope of depreciation.
・Expand growth investment, particularly in the Real Estate segment, to expand the business in FY2027 and beyond.
・Secure funding for this increased investment through additional borrowings and asset sales, in addition to retained earnings.

Current Medium-Term Management Plan
period (FY2023 - FY2026)

Inflows

Depreciation andAmortization(¥ billion)

Outflows

260.0

Investment in maintenanceand renewal
240.0

Next Medium-Term Management
Plan Period
Inflows
Depreciation andAmortizationＥ Ｂ ＩＴ Ｄ Ａ

Ｅ Ｂ ＩＴ Ｄ Ａ

Return to Shareholders,Interest expense,tax payment etc
170.0
Business Profit
420.0

Domestic real estate

Asset sales

30.0

Additional borrowing etc.
210.0

Growth investment

690.0

520.0

Business Profit(For sale property and equity)

Expansion⇗

Overseas real estate
Expansion⇗

OthersGRAND GREEN OSAKA,
Hanshin Tigers new farm facility etc.

Increase ininvestment
leading toincreasedbusiness profit

Increase inbusiness profit ⇗Increase inbusiness profit
leading to further
growthinvestment

42

[Reference] Cash Flows
Cash Allocation Strategy‧In line with the strategy described on the previous page, we have added ¥130.0 billion in growth investment,
focusing on the Real Estate segment, with a view to expanding the business in FY2027 and beyond.
‧This is expected to bring the total cash outflow for the period to around ¥930.0 billion.
‧Although our EBITDA for this period of the plan increased by ¥20.0 billion to around ¥690.0 billion, this results ina shortfall of around ¥240.0 billion. This shortfall will be covered by additional borrowing and asset sales.

Projected cash flows for FY2023–FY2026 period
Previous plan
Current plan

Inflows

Strategic investment
framework

EBITDA
670.0

Additional borrowing etc.

120.0

Inflows

Outflows

Growthinvestment(¥ billion)

Outflows-30.0-360.0EBITDA
690.0

Growthinvestment-520.0790.0

Maintenance CapEx(investment inmaintenance andrenewal of existing
infrastructure)-240.0Return to Shareholders,Interest expense, tax
payment etc.

-160.0Plus 20.0 bn in interestbearing debt from new
consolidations*Growth investment includes net increases in for-sale property and equity.

930.0

Asset sales 30.0
Additional borrowing etc.

210.0

Plus 30.0 bn in interestbearing debt from new
consolidations

Maintenance CapEx(investment inmaintenance andrenewal of existing
infrastructure)-240.0Return to
Shareholders, Interest
expense, tax paymentetc.

-170.043

[Reference]Capital Expenditure (and Lending)
CapEx budget for FY2023–FY2026 period

Total CapEx (and lending)

760.0 bn

Main growth investments
Urban
Transportation‧ Installation of platformdoors andbetter accessibility‧ Kita-Osaka Kyuko Railway Line Extension Project‧ Naniwasuji Connection Line /Shin-Osaka Connection Line Project

Real Estate‧ Umekita Phase II DevelopmentProject‧ Shibata1 Project‧ Projects in Tokyo Metropolitan Area (Yaesu 2 Naka
Redevelopment, Development of site of the HotelGrand Palace)‧ Real Estate segment’s overseas expansion‧ Expansion of domestic condominium business‧ Expansion of short-term-returns businessEntertainment‧ New farm facility for the Hanshin Tigers

Other‧ IT strategy, digital transformation(includes investment in for-sale property andnet increases in equity)44

Performance Indicators (–FY2026)
FYI

FY2024
Results

FY2025
Forecasts

FY2026
Targets

FY2026
Previous targets

Business profit (1) + (2)¥108.3bn¥107.0bn¥118.0bn¥118.0bn

Operating profit (1)¥105.7bn¥105.8bn¥116.4bn¥115.0bn¥2.6bn¥1.2bn¥1.6bn¥3.0bn¥173.2bn¥175.0bn¥193.0bn¥193.0bn¥1,174.2bn¥1,320.0bn¥1,330.0bn¥1,230.0bn

Interest-bearing debt/EBITDA ratio

6.8

7.5

6.9

6.4

D/E ratio*2

1.2

1.3

1.2

1.2

¥67.8bn¥70.0bn¥75.0bn¥75.0bn

7.2%

7.0%

7% range

7% range¥1,114.6bn¥1,270.0bn¥1,280.0bn¥1,205.0bn

6.4

7.3

6.6

6.2

Equity-method gains/losses related tooverseas business investments (2)EBITDA*1
Interest-bearing debt

Profit attributable to owners of parent
ROE(Reference)

Net interest-bearing debt*3
Net interest-bearing debt/EBITDA ratio*1 EBITDA = Business profit (Operating profit + Equity-method gains/losses related to overseas business investments)+ Depreciation expenses + Amortization of goodwill*2 D/E ratio = Interest-bearing debt / Equity*3 Net interest-bearing debt = Interest-bearing debt – Cash and Deposits
45

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2024
(Ended March 2024)
Ⅲ. Long-Term Vision, Medium-Term Management Plan
(1) Long-Term Management Vision(2) Progress in Medium-Term Management Plan
Ⅳ. Forecasts for Fiscal 2025 (Ending March 2025)

46

Consolidated Statements of Income (Summary)(￥ billion)

Operating revenue

FY2025
Forecasts
1,075.0

FY2024
Results
997.6

ChangeRemarks
Revenue growth is forecasted on the basis that the Real

77.4

+7.8% Estate segment will gain higher condominium sale

Operating profit

105.8

105.7

+0.1

[Business profit][107.0][108.3][-1.3 ]

income. Flat profit growth is expected due to transitory
factors impacting profit in the previous period+0.1% (extraordinary demand driving professional baseballrelated sales in the Sport business, orders for support[-1.2%] services for local governments in the Travel segment)

Ordinary profit

103.0

109.4

-6.4

-5.9% Profit decreased due to a worsening financial balance+2.2(Factors resulting in increased profits)- Improvement in extraordinary profit and loss
(Factors resulting in decreased profits)+3.2% - Increase in tax expenses, etc. (in reaction to theeffects of the reversal of deferred tax assets andliabilities due to tax code reforms in the previous
term)Profit attributable to owners ofparent70.0

67.8（Reference）
Capital Expenditures

148.4

101.8

+46.6

Depreciation and amortization

65.8

62.6

+3.2

Financial balance (A) - (B)

-11.2

-8.6

-2.6

Interest and dividend income (A)

1.3

1.8

-0.5

Interest expense (B)

12.5

10.4

+2.1

Note: Business profit = Operating profit + Equity-method gains/losses related to overseas business investments
47

Consolidated Statements of Income (Business Profit) (Breakdown for each business segment)(¥ billion)
Upper row︓
Operating revenue
Lower row︓
Operating profit[Business profit]

Total

FY2025
Forecasts

FY2024
Results

ChangeRemarks

1,075.0

997.6

77.4

105.8
[107.0]105.7[108.3]+0.1[-1.3]

203.3+4.4 businesses will see an increase in ridership, in addition to the opening of the Kita-[Breakdown for each business segment]

207.7

Revenue growth is forecasted on the basis that the railway and automobile

Urban Transportation

Real Estate

32.6

34.3

-1.7

381.1

318.3

+62.8

53.0

49.8

+3.2 condominium sales[54.2][52.4][+1.8]

77.0

82.6-5.6 Lower revenue and profit is forecasted as a reaction to the special demand seen for

8.8

14.1

-5.3

70.1

64.6

+5.5 Revenue and profit growth is forecasted on the basis that the information services

6.7

6.1

+0.6

220.0

216.9

3.0

5.0

100.5

100.3

1.2

0.2

Revenue and profit growth is forecasted on the basis of expectations for increased

Entertainment

Information and Communication
Technology

TravelInternational
Transportation

Osaka Kyuko Railway Line Extension Project. Lower profit is forecasted on the basisof higher depreciation, and increased power costs and other miscellaneous
expenses

professional baseball in the previous year in the sports business, and due to an
anticipated increase in costs associated with reorganizing the structure of the
Takarazuka Revue in the stage businessbusiness will see order growth+3.1 Revenue growth is forecasted on the basis that overseas travel will recoversomewhat. Lower profit is forecasted that orders for support services for local-2.0 governments and other orders will decline+0.2 Profit growth is forecasted on the expectation that market conditions will recover+1.0

somewhere through to the second half, particularly in air freight

Note: Business profit = Operating profit + Equity-method gains/losses related to overseas business investments

48

[Urban Transportation] Railway Performance Forecasts
Hankyu Corporation
Fare revenues (¥ million)*
FY2025
Forecasts

FY2024
Results

Passenger volumes (Thousands)*
FY2025
Forecasts

ChangeFY2024
Results

Change32,35932,244+114(+0.4%)

313,287

313,294-6(-0.0%)

Workers

28,15028,141+9(+0.0%)

219,622

221,032-1,409(-0.6%)

Students

4,208

4,103

+105

(+2.6%)

93,66592,261+1,403(+1.5%)

Other tickets

62,30560,674+1,630(+2.7%)

289,199284,626+4,573(+1.6%)

Total

94,664

92,919+1,745(+1.9%)

602,487

597,920+4,566(+0.8%)

Commuter pass

Barrier-free charge:
3.6 billion yen

Barrier-free charge:
3.4 billion yen

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2025
Forecasts

FY2024
Results

Passenger volumes (Thousands)*
FY2025
Forecasts

ChangeFY2024
Results

Change12,10912,010+98(+0.8%)

120,582

120,734-152(-0.1%)

Workers

10,975

10,874+101(+0.9%)

96,742

96,911-169(-0.2%)

Students

1,134

1,136

-2

(-0.2%)

23,84023,822+17(+0.1%)

Other tickets

22,44922,242+206(+0.9%)

115,770

114,356+1,413(+1.2%)

Total

34,55834,253+304(+0.9%)

236,352

235,090+1,261(+0.5%)

Commuter pass

Barrier-free charge:
1.2 billion yen

Barrier-free charge:
1.1 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.
4) In FY2024, Hankyu Corporation and Hanshin Electric Railway introduced a barrier-free charge. This charge is added to regular rail fares and included in the farerevenues from “Other tickets” and “Commuter pass: Workers.”

49

Returns to Shareholders
Shareholder Returns Policy• We set the total payout ratio as an indicator of shareholder returns. As such, we aim to deliver
steady dividends to shareholders, as measured by a total payout ratio of 30%, and steadilyacquire treasury stock, while working to enhance our operating foundation.
• We cap our treasury holdings at 5% of total issued shares and dispose of any holdings that exceed
this cap.
[Reference] Formula for calculating total payout ratio
Total payout ratio of FY[N](％) =(Total dividend of FY[N])+(Acquisition of treasury stock in FY[N+1])(Profit attributable to owners of parent in FY[N])× 100

Dividends and share buybacks• FY2024: As announced in October 2023, the annual dividend will be increased from ¥50 to ¥55*
per share (¥25 interim, ¥30 year-end). Shares will be repurchased with a cap of ¥7.1 billion.
• FY2025: In light of recent business performance, we plan to increase the annual dividend from ¥55
to ¥60 per share (¥30 interim, ¥30 year-end).
Acquisition of treasury stock

9.1 bn10.0 bn¥40

9.8 bn¥35
8.8 bn9.9 bn¥40
9.9 bnFY2017FY2018FY2019Total dividend

Dividend per share

7.1 bn2.0 bn4.3 bn
¥50

¥50

¥55*

¥50

¥50

12.2 bn

12.2 bn

12.1 bn

12.1 bn

13.3 bn

FY2020

FY2021

FY2022

FY2023

FY2024* This is subject to shareholder approval at the General Meeting of Shareholders on June 14, 2024.

¥60(Scheduled)（予定）

FY202550

[Reference] Consolidated Statements of Capital Expenditure(¥ billion)

Total capital expenditure

FY2025
Forecasts

Main investments

148.4

FY2024
Results

Main investments

Change

101.8

+46.6

・ Building of new rolling stock
and improvement of existing
55.3 rolling stock・ Development of barrier-freefacilities

・ Kita-Osaka Kyuko Railway Line
Extension Project・ Building of new rolling stock
38.2 and improvement of existingrolling stock・ Development of barrier-freefacilities+17.1

・ Umekita Phase II
Development Project(GRAND GREEN OSAKA)
・ Acquisition of the Neo Soho
47.9 Mall, commercial facility inIndonesia
・ HANKYU NISHINOMIYAGARDENS PLUS
・ Yaesu 2 Naka Redevelopment

+13.4

6.1

[Breakdown for each business segment]

Urban Transportation

Real Estate

61.3

・ Umekita Phase II
Development Project(GRAND GREEN OSAKA)
・ Yaesu 2 Naka Redevelopment

Entertainment

19.9

・ Hanshin Tigers farm facility
relocation plan

Information and Communication
Technology

5.3

5.3

-0.0

Travel

1.5

0.6

+0.9

International Transportation

2.6

3.4

-0.8

・ Hanshin Tigers farm facility
relocation plan

+13.8

51

[Reference] Consolidated Statements of Depreciation and amortization, EBITDA*(¥ billion)

FY2025
Forecasts

FY2024
Results

ChangeTotal Depreciation and amortization

65.8

62.6

+3.2

[Breakdown for each business segment]
Urban Transportation

28.0

26.1

+1.9

Real Estate

26.0

25.2

+0.8

Entertainment

4.0

3.7

+0.3

Information and Communication Technology

5.9

5.4

+0.5

Travel

1.1

0.9

+0.2

International Transportation

2.5

2.0

+0.5

175.0

173.2

+1.8

60.6

60.3

+0.3

Real Estate

80.2

77.6

+2.6

Entertainment

12.8

17.8

-5.0

Information and Communication Technology

12.6

11.6

+1.0

Travel

4.1

5.9

-1.8

International Transportation

3.7

2.2

+1.5

Total EBITDA[Breakdown for each business segment]
Urban Transportation*EBITDA = Business profit (Operating profit + Equity-method gains/losses related to overseas business investments)+ Depreciation expenses + Amortization of goodwill

52

[Reference] Operating Revenue and Operating (Business) Profit in Main Segments(¥ billion)

FY2025
Forecasts

Urban Transportation

Operating profit[Business profit]

Operating revenue
FY2024
Results

ChangeFY2025
Forecasts

FY2024
Results

Change

207.7

203.3

+4.4

32.6

34.3

-1.7

Railway

150.9

148.0

+2.9

35.8

37.1

-1.3

Automobile

44.3

43.7

+0.6

2.4

2.4

+0.0

Retailing

12.9

12.8

+0.1

1.1

1.4

-0.3

Others

10.2

10.0

+0.2

0.7

0.9

-0.2

Real Estate

381.1

318.3

+62.8

53.0
[54.2]

49.8[52.4]+3.2[+1.8]

Real estate leasing

139.2

127.1

+12.1

37.8

38.1

-0.3

Real estate sales and others

206.9

153.8

+53.1

20.8

15.7

+5.1

Overseas real estates

10.5

8.6

+1.9

4.9
[6.1]

3.2
[5.8]

+1.7
[+0.3]

Hotel

61.3

62.7

-1.4

2.5

4.1

-1.6

77.0

82.6

-5.6

8.8

14.1

-5.3

Sports

43.8

50.3

-6.5

7.6

11.2

-3.6

Stage

33.1

32.2

+0.9

2.9

4.8

-1.9

[Breakdown][Breakdown]Entertainment[Breakdown]

Note: 1) Segment totals may not match the aggregate of the amounts for each type of business due to separate head office expenses/adjustments.
2) Business profit = Operating profit + Equity-method gains/losses related to overseas business investments

53