Hankyu Hanshin Holdings Group
Results Briefing Materials for Financial
Results for Fiscal 2022 (Ended March 2022)
And Materials for Long-Term Vision

May 20, 2022
Hankyu Hanshin Holdings, Inc.
9042 https://www.hankyu-hanshin.co.jp/en/

Contents
Ⅰ. Performance Highlights for Fiscal 2022
(Ended March 2022)･･･

Ⅱ. Long-Term Vision: Toward 2040･･･ 22

Ⅲ. Summary of the Medium-Term Management Plan･･･ 53

Ⅳ. Forecast for fiscal 2023 (Ending March 2023)･･･ 67

2

Separate Document: Reference Data
(1) Supplementary Data on FY2022 Results and FY2023
Forecasts(2) Earnings Forecasts for Each Segment(3) Progress in Each Project(4) Sustainable Management(5) OtherBusiness forecasts and other projections herein are based on information available at present and logical assessments and do not
represent any promise by the Company. The actual results may differ significantly from these projections due to various factors.

1

Ⅰ. Performance Highlights for Fiscal 2022
(Ended March 2022)2

Blank page3

Consolidated Statements of Income(Summary)
FY2022
Results

Consolidated Subsidiaries
Equity-Method Affiliates
Total(¥ million)

98 companies
11 companies
109 companies

Impact of applying ASBJ 29+￥35.4 billion

Revenue from operations
Operating income

FY2021Results

Change95 companies +3 (3 companies increase)
11 companies
106 companies +3

FY2022
Results

FY2021Results

746,217568,900 +177,317 （ ― ） For details,

39,212

Change2,066 +37,145 （ ― ）Remarks

please see next page

Non-operating income

10,885

3,572+7,313Equity in income of affiliates +7,167

Non-operating expenses

11,64813,262-1,614Equity in loss of affiliates -1,622

Ordinary income

38,450-7,623 +46,073 （ ― ）Extraordinary income

42,96913,167+29,801

Gain on contributions for construction +24,754
Gain on sale of investment securities +3,479

Extraordinary loss

42,82746,557-3,730

Structural reform-related loss -18,618
COVID-19-related losses -9,863
Loss on reduction of noncurrent assets +24,734

Net income attributable toowners of the parent

21,418FY2022
Results（Reference）

ASBJ 29 (Accounting Standard for Revenue-36,702 +58,121 （ ― ） Applying
Recognition) impacts revenue from operations in two

FY2021Results

ChangeDepreciation and amortization

59,10755,733+3,374

Financial balance ① - ②-7,408-7,783+374

Interest and dividend income①

1,108

1,102

+5

Interest expense②

8,516

8,885

-368

Note: The percentage changes are not shown because the figures for FY2022 results comply with the
Accounting Standard for Revenue Recognition (ASBJ No. 29), applied from the start of FY2022.

main ways (the impact on operating income isnegligible in each case) :1) We will now recognize revenue at the grossamount (rather than the net amount as before)
for transactions in the travel business related toorganized tours.
2) We will now recognize revenue at the net
amount (rather than the gross amount as
before) for transactions in the retailingbusiness related to sales and purchasing,and for transactions in the information andcommunication technology segment related
to agency retail sales of electricity.

4Consolidated Statements of Income (Breakdown for each business segment)[Key results in period under review]
Revenues and income increased. Although the COVID impact persisted, the impact was lessthan in the previous year, and many businesses experienced recovery to some extent.
Revenue from operations(¥ million)

Operating income

FY2022
Results

FY2021Results

Urban Transportation

161,623

156,926+4,696

5,629-5,108+10,737

Real Estate

230,526

188,360+42,166

32,952

28,923+4,02962,86442,192+20,672

9,263-2,258+11,522

Information and Communication
Technology

59,181

58,083+1,097

5,867

5,556

+311

Travel

60,419

11,960+48,459-5,748-7,397+1,648International
Transportation

143,296

85,552+57,743

8,019

2,308

+5,711

Hotels25,554

19,145+6,409-13,176-17,927+4,750Other51,666

49,840+1,826

2,385

1,881

+503

Adjustment-48,914-43,160-5,754-5,979-3,911-2,068746,217568,900+177,317

39,212

2,066+37,145

Impact of applying ASBJ 29

ChangeFY2022
Results

FY2021Results

Change-￥3.8 billion

Entertainment-￥3.5 billion

Total+￥45.9 billion+￥35.4 billion

5Consolidated Statements of Income by Segment(Four-Year YoY Comparisons)From left to right: FY2019, FY2020, FY2021, FY2022
791.4

Revenue from operations

762.7(¥ billion)

746.2

238.6

237.3236.0

227.2

568.9

230.5

188.4
156.9 161.6
143.3

Impact of applying ASBJ 29+￥45.9 billion
90.0

74.5 74.0

62.9
42.2

58.6
53.5

76.2

85.6
64.9 60.3

60.4

58.1 59.2
35.5 33.8

19.1

12.0
全社合計
【Total】

Urban

Real EstateEntertainment

Transportation

Information andTravelCommunication

International

25.6

HotelsTransportation

Technology

Operating income

＊

＊

114.9

49.3
43.5

95.2

41.5

40.1

33.0
28.9

13.4
39.2

11.7

9.3

8.0

5.3 5.6 5.6 5.9

5.6

1.8

2.4

0.2

0.2

2.3

-2.3

-5.1

-7.4

2.1

1.2
-3.1

-5.7

-13.2
全社合計
【Total】

Urban

Transportation

Real EstateEntertainment

Information andCommunication

TravelInternational-17.9

HotelsTransportation

Technology＊Includes special factor (gain from sale of commercial-use land in east area of Saito)

6Change in Operating Income between FY2021 and FY2022••

In FY2022, operating income was up ¥37.1 billion YoY because, while businesssegments continued feeling pandemic impact, the impact had lessened compared to
the last year.
The actual increase was ¥47.0 billion when taking into account the COVID-related
extraordinary losses (including fixed expenses during suspensions of operations andcosts associated with cancelling events) in both periods. In FY2021, the extraordinary
losses totaled ¥19.4 billion. In FY2022, they totaled ¥9.5 billion.

FY2021

FY2022
39.2

COVID-19related losses

-9.5

29.7
+¥37.1 billion+¥47.0 billion

2.1

COVID-19related losses

-19.4

-17.3

Urban Transportation +¥11.4 billion,
Real Estate +¥5.2 billion,
Entertainment +¥14.5 billion,
Travel +¥4.8 billion,
International Transportation +¥5.7 billion,
Hotels +¥6.4 billion
7

Urban Transportation Results
Increase in revenue and income. The segment continued feeling pandemic impact (withfewer traveling amid a state of emergency), but the railway and automobile businesses
experienced a recovery in ridership compared to the slump of the last year.

（\ million）

FY2022
Results

Revenue from operations
Operating income

FY2021Results

Change％161,623

156,926+4,696

＋3.0%

5,629

-5,108+10,737―[Breakdown by type of business]（\ billion）

Revenue from operations
FY2022
Results

Railway
Automobile

Others-￥3.8 billion

Y on YFY2022
Results

FY2021Results

Y on Y

118.5

112.3

+6.2

14.7

7.9

+6.8

34.1

32.7

+1.4

-4.2

-6.8

+2.6

10.9

14.0

-3.0

0.8

0.8

+0.0

8.7

8.8

-0.1

0.7

0.7

-0.1

Impact of applying ASBJ 29

Retailing

FY2021Results

Operating income*Not including head office expenses /adjustments.

8

[Urban Transportation] Railway Performance results
Hankyu Corporation
Fare revenues (¥ million)*
FY2022
Results

FY2021Results

Passenger volumes (Thousands)*

ChangeFY2022
Results

FY2021Results

ChangeCommuter pass

28,65428,093+561(＋2.0%)

282,633

277,068+5,564(＋2.0%)

Workers

25,22325,625-401(－1.6%)

204,916

216,044 -11,127(－5.2%)

Students

3,431

2,468

+963 (＋39.0%)

77,71761,024 +16,692 (＋27.4%)

Other tickets

45,422

40,982+4,440 (＋10.8%)

228,028208,035 +19,992(＋9.6%)

Total

74,077

69,075+5,001

510,661

485,104 +25,557(＋5.3%)(＋7.2%)Hanshin Electric Railway
Fare revenues (¥ million)*
FY2022
Results

FY2021Results

Passenger volumes (Thousands)*

ChangeFY2022
Results

FY2021Results

ChangeCommuter pass

10,628

10,476+151(＋1.4%)

110,096

107,336+2,759(＋2.6%)

Workers

9,668

9,750

-82

(－0.8%)

89,40090,809-1,409(－1.6%)

Students

960

726+234 (＋32.2%)

20,695

16,526+4,168 (＋25.2%)

Other tickets

15,397

13,725+1,671 (＋12.2%)

84,10376,214+7,888 (＋10.4%)

Total

26,02624,202+1,823

194,199

183,550 +10,648(＋7.5%)(＋5.8%)＊ 1) Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
2) For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
3) Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway
4) For commuter passes, revenue and ridership were previously counted from the date of sale. As of fiscal 2022, they arecounted from the commencement date (the date from which the ticket is valid).

9

Real Estate Results
Revenue and income increased. The real estate sales business saw a year-on-yearincrease in condominium sales. The real estate leasing business sold short-term-returns(fix-and-flip) properties. Rent revenue recovered from the COVID-caused slump of theprevious year.
[Reference]
Condominium sales (condos held by group):
previous year)（\ million）+270 units (1,137 units, compared to 867 units in

FY2022
Results

FY2021Results

Change％Revenue from operations

230,526

188,360+42,166＋22.4%

Operating income

32,952

28,923+4,029＋13.9%[Breakdown by type of business]（\ billion）

Revenue from operations
FY2022
Results

FY2021Results

Y on Y

Operating income
FY2022
Results

FY2021Results

Y on Y

Real estate leasing

112.5

99.7

+12.8

30.1

29.2

+0.9

Real estate sales
and others

135.5

105.7

+29.7

11.4

8.3

+3.1

*Not including head office expenses /adjustments.

10Entertainment Results
Increase in revenue and income. The segment continued feeling pandemic impact(restrictions on events amid a state of emergency), but in contrast to the last year, whenmany of the events were postponed or cancelled, the sports business benefitted from an
upturn in Hanshin Tigers’ regular season games, and the stage business benefitted froman upturn in Takarazuka Revue shows.

（\ million）

FY2022
Results

FY2021Results

Change％Revenue from operations

62,86442,192+20,672＋49.0%

Operating income

9,263-2,258+11,522―[Breakdown by type of business]（\ billion）

Revenue from operations
FY2022
Results

FY2021Results

Y on Y

Operating income
FY2022
Results

FY2021Results

Y on YSports

29.4

21.1

+8.3

3.7

-2.5

6.2

Stage

33.4

21.0

+12.4

6.9

1.7

5.2

*Not including head office expenses /adjustments.

11

Information and Communication Technology results
Revenue and income increased. The broadcasting and communications business gained
new subsidiaries, while the information services business saw an increase in orders.

（\ million）

FY2022
Impact of applying ASBJ 29
Results-¥3.5 billion

FY2021Results

Change％Revenue from operations

59,181

58,083+1,097＋1.9%

Operating income

5,867

5,556

+311

＋5.6%

Travel results
Revenue and income increased. The segment continued feeling pandemic impact(cancellations of international tours), but revenue increased with the application of the
Accounting Standard for Revenue Recognition and higher orders in non-travel businesses
such as operation/management of accommodation facilities for COVID patients.

（\ million）
Impact of applying ASBJ 29+¥45.9 billion

FY2022
Results

FY2021Results

Change％Revenue from operations

60,419

11,960+48,459＋405.2%

Operating income-5,748-7,397+1,648―12

International Transportation results
Increase in revenue and income. Handling volume recovered from the Covid-related
slump, and demand outstripped supply for air and ocean transport.

（\ million）

Revenue from operations
Operating income

FY2022
Results

FY2021Results

Change％143,296

85,552+57,743＋67.5%

8,019

2,308

+5,711＋247.4%

Hotels results
Increase in revenue and income. The segment continued feeling pandemic impact (withsome hotels temporarily closing amid a state of emergency), but the accommodationand food/beverage businesses experienced a recovery, to some extent, in user numbers
compared to the slump of the last year.

（\ million）

FY2022
Results

FY2021Results

Change％Revenue from operations

25,554

19,145+6,409＋33.5%

Operating income-13,176-17,927+4,750―13

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

FY2022
Results

FY2021Results

ChangeOperating income

39,212

2,066+37,145

Non-operating income

10,885

3,572+7,313

7,167

ー+7,167

11,64813,262-1,614

Interest expenses

8,516

8,885

-368

Equity in loss of affiliates

ー

1,622

-1,62238,450-7,623+46,073

Equity in income of affiliates

Non-operating expenses

Ordinary income

14Consolidated Statements of Income(Extraordinary profit and loss)
FY2022
Results
142

FY2021Results-33,389

42,96913,167+29,801

Gain on contributions for construction

28,2393,485+24,754

Gain on sale of investment securities

3,702

222

+3,479

Employment adjustment subsidies

9,234

8,715

+518

Other

1,792

743

+1,04942,82746,557-3,730Loss on reduction of noncurrent assets

28,302

3,568+24,734

COVID-19-related losses

9,518

19,382-9,863－

18,618-18,618

5,006

4,989

+17

(¥ million)

Extraordinary profit and loss
Extraordinary income

Extraordinary loss

Structural reform-related loss*

Other

Change+33,532* The structural reform-related loss in the hotels business.

15

Consolidated Statements of Income(Net income attributable to owners of the parent)
FY2022
Results(¥ million)

Income before income taxes

FY2021Results

Change38,592-41,013+79,606

13,256-6,478+19,734

Income taxes—current

9,963

4,205

+5,758

Income taxes—deferred

3,292-10,683+13,976

25,335-34,535+59,871

3,916

2,166

+1,75021,418-36,702+58,121

Total income taxes

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

16

Consolidated Balance Sheets

Assets（\ million）

FY2022
Results

FY2021Results

ChangeCurrent assets

365,811

325,307+40,503 Trade receivables +39,576

Noncurrent assets

2,357,030

2,295,721+61,309 Property and equipment and intangible assets +78,842

2,722,841

2,621,028+101,812

Total assets

Net assets

Liabilities

Current liabilities

426,659

380,618+46,040

Remarks

FY2022
Results
Dept
Bonds
Commercial paper

Long-term liabilities

1,380,818

1,330,424+50,394

Lease obligations
Interest-bearing debt

Total liabilities

795,213 824,622
237,000 197,000
50,00030,00013,75011,425
1,095,965 1,063,048

Change△29,408＋40,000＋20,000＋2,325＋32,916Long-term deferred contribution for construction＋25,768
Trade payables ＋11,561

1,807,477

1,711,042

Shareholders' equity

843,332

833,640+9,691 Payment dividend -12,126

Accumulated othercomprehensive income

27,01633,511-6,494 Net unrealised holdings gains on securities -5,843

Non-controlling interests

45,014

42,834+2,180Total net assets

915,363

909,985+5,377

32.0%

33.1%

-1.1P

Equity ratio+96,435

FY2021Results

Net income attributable to owners of the parent +21,418

17

Consolidated Statements of Cash Flows(¥ million)

FY2022

FY2021Results

Results

81,844-32,501

Income before income taxes

38,592-41,013

Depreciation and amortization (*)

59,94557,502

Decrease (increase) in inventories-2,560-36,799

Income taxes (paid) refunded

6,934-29,871

Cash flows from investing activities-96,442-102,151

Purchases of noncurrent assets-131,491-136,958

681

19,911

9,187

1,664

31,242

29,24915,141

134,631

Dividends paid

-12,126-12,188[Reference] Decrease (increase) in interest-bearing debt

32,916

159,568

1,441
1,983

-354
-375

25,222
2,215
29,422

23,526
2,072
25,222

Cash flows from operating activities

Proceeds from sales of noncurrent assets
Proceeds from sales of investment securities
Receipt of contributions for construction

Cash flows from financing activities

Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of year(*) “Depreciation and amortization” includes amortization recognized as extraordinary losses related to the COVID-19.

18

《Reference》 Comparisons with January forecasts(\ billion)

FY2022
Results

FY2022
Forecasts(As of Jan.)

ChangeRevenue fromoperations

746.2

750.0

-3.8

Operating income

39.2

36.0

+3.2

Remarks

Operating income: Exceeded forecast
because of higher-than-expectedorders in non-travel businesses (e.g.
operation/management ofaccommodation facilities for COVID＋8.9％ patients) and lower costs across group-0.5％

Ordinary income

38.5

31.0

+7.5

Exceeded forecast because of betterthan-expected operating income and＋24.0％ higher gains on equity in income ofaffiliates.

Net income attributableto owners of the parent

21.4

15.0

+6.4

＋42.8％ than-expected ordinary income

Exceeded forecast because of better-19

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

FY2022
Results

FY2022
Forecasts(As of Jan.)

ChangeFY2022
Forecasts(As of Oct.)

ChangeFY2022
Forecasts(As of Jul.)

ChangeFY2022
Forecasts(As of May)

ChangeFY2021Results

Change

①

②

=①-②

③

=①-③

④

=①-④

⑤

=①-⑤

⑥

=①-⑥

746.2

750.0

-3.8

740.0

+6.2

770.0

-23.8

800.0

-53.8

568.9

+177.3

39.2

36.0

+3.2

30.0

+9.2

30.0

+9.2

23.0

+16.2

2.1

+37.1

161.6

164.4

-2.8

166.2

-4.6

173.7

-12.1

176.3

-14.7

156.9

+4.7

5.6

8.4

-2.8

8.7

-3.1

11.3

-5.7

12.7

-7.1

-5.1

+10.7

230.5

235.3

-4.8

236.3

-5.8

244.1

-13.6

245.6

-15.1

188.4

+42.2

33.0

31.9

+1.1

30.5

+2.5

31.8

+1.2

30.9

+2.1

28.9

+4.0

62.9

62.5

+0.4

62.4

+0.5

59.2

+3.7

56.4

+6.5

42.2

+20.7

9.3

8.1

+1.2

7.3

+2.0

5.6

+3.7

2.2

+7.1

-2.3

+11.5

59.2

62.6

-3.4

62.6

-3.4

61.6

-2.4

59.4

-0.2

58.1

+1.1

5.9

6.0

-0.1

6.0

-0.1

6.0

-0.1

5.6

+0.3

5.6

+0.3

60.4

57.0

+3.4

60.0

+0.4

108.7

-48.3

144.0

-83.6

12.0

+48.5

-5.7

-10.2

+4.5

-11.0

+5.3

-8.7

+3.0

-8.0

+2.3

-7.4

+1.6

143.3

135.0

+8.3

120.0

+23.3

87.0

+56.3

82.9

+60.4

85.6

+57.7

8.0

7.0

+1.0

5.0

+3.0

2.8

+5.2

1.6

+6.4

2.3

+5.7

25.6

26.9

-1.3

26.3

-0.7

28.5

-2.9

28.8

-3.2

19.1

+6.4

-13.2

-13.2

+0.0

-13.8

+0.6

-15.7

+2.5

-18.7

+5.5

-17.9

+4.8

[Breakdown for each business segment]

Urban Transportation

Real EstateEntertainment

Information andCommunication
Technology

TravelInternational
Transportation

Hotels20

Blank page21

Ⅱ. Long-Term Vision: Toward 2040

22

Hankyu Hanshin Holdings Group

Long-Term Vision: Toward 2040

23

Strategic Management
Customers
Employees

Communities

Partners

Contribute toa sustainable society
Creditors

Next generation

Shareholders

The vision and strategy for the Group’s sustainablegrowth, and the specific plans for implementation
thereofLong-Term Vision
Where we want to be and how we will get there
Medium-Term Management Plan
Outlines specific actions for the medium term that willcontribute to the long-term vision

Sustainably enhance corporate value

The base underpinning our efforts to achievesustainable corporate development
Long-Term Vision
Medium-Term Management plan

Sustainability Declaration

Group Management Philosophy

General principles－ Create a future grounded in "Safety and Comfort",
and a future colored by “Dreams and Excitement”. －Our value to society
MissionBy delivering “Safety and Comfort” and “Dreams and Excitement”,
we create satisfaction among our customers and contribute tosociety.
24

Background2006

Hankyu Hanshin Holdings founded2017 Long-Term Vision for 2025 (FY 2026) unveiled
Upon the tenth anniversary of Hankyu and Hanshin’s integration, we unveiled
Long-Term Vision for 2025, which enshrined sustainable growth goals for 2025
(our 20th anniversary) and beyond.

Changes in business climate
The changes outpaced predictions in Long-Term Vision for 2025
Key changes that occurred after we unveiled the Long-Term Vision

Societal changes
accelerated by COVID

Groundswell toward
SDGs and 2050 carbon
neutrality goal

Changes in market overmedium to long term

The Long-Term Visionpredicted that the market
would change

Fasterchanges

2022 Long-Term Vision updated
Reflecting these changes, we updated the Long-Term Vision toachieve sustained growth in our value.

25

Long-Term Vision for 2025 in Review
 After unveiling the Long-Term Vision, we defined strategies for achieving the visionand embarked on a medium-term plan with FY2022 as the endpoint.
 We were on course until COVID struck, but the pandemic overturned ourunderlying assumptions about the business climate. Consequently, we missed our
medium-term goals and faced the need to update our Long-Term Vision.
<Strategies for Long-Term Vision>
Strategy 1

Strategy 2Strategy 3

Strategy 4Make our railway the absolute
best among the Kansai
networks

Construct a stable revenue
base in the Tokyo
metropolitan area andoverseas markets

Strengthen competitivenessby thoroughly pursuing brand
optimization anddifferentiation

Make greater use of
the Group’s collective
strength and develop
new business fields<Progress in Long-Term Vision (as measured by operating income)>
120.0 Billion yen

105.2

114.9

Billion yen

Billion yen

95.2

39.2

Billion yen

Billion yen

Pre-COVID

2.1
Billion yen

FY

2018

2019

2020

2021

2022
2022

Medium-term target¥100 billion level…

Endpoint of Long-Term
Vision110.0 Billion yen

2026

Targeted figure for 2025
Operating income¥120.0 billion

EBITDA¥200.0 billion

Interest-bearing
debt/EBITDA ratio

Between 5 and 6 times

26Long-Term Vision for 2025 in Review<Progress in key strategies>
Key strategy

Increase the value of our assets
in the Umeda area
Strategy 1

Invigorate key line-side bases

Construct new rail links to
improve the transport network

Strategy 2

Progress

End date

Umeda 1-1 Project

Has entered service

February 2022

Umekita Phase Ⅱ Development Project

Under construction

FY2028

Shibata 1 Project (see p.50)

Under planning

To be determined

Senri-Chuo Redevelopment (see p.51)

Under planning

To be determined

Naniwasuji Connection Line/Shin-Osaka
Connection Line Project

Under planning

To be determined

Kita-Osaka Kyuko Railway
Line Extension Project

Under construction

FY2024

Hankyu Hanshin Ginza Building

Has entered service

March 2020

Under planning

FY2029Under planning

To be determined

Acquired

July 2019

Acquire more stock in the Tokyo Yaesu 2 Naka Redevelopment
metropolitan area
Development of site of the Hotel Grand
PalaceDevelop plans for acquiring stock Acquisition of rental properties in Indonesia(real estate) overseas(e.g. Plaza Indonesia Complex)

Strategy 3
Strategy
4

Condominium business in Japan and overseas (expand in ASEAN)
Grow short-term-return (fix-and-flip) property business
Use livestreaming to expand Takarazuka Revue market
Develop the information services business
Overhaul travel business (until COVID)

•
•
•
•
•

• Venture into new business fields
27

Changing business climate: Rapid societal changes
Driven by COVID
COVID has accelerated broad changes, including in where people live andwork and in what people value (people place more value on quality of life).
These shifts are set to continue.
Changes driven by COVID
Changes in population behavior
Less travel
demandMore dispersed
workforce,dispersed
learning

More options
for where to
live

Further changes to comeGreater diversity in work
(remote work, side jobs)

More value placed on private life

Changes in corporate sector
Infrastructure for flexible
working (fewer businesstrips and far-flung job
transfers, more side jobs)

Pace of digitalization to increase
More BCP

Emphasis on quality of life
More emphasis on health and safety, more
health consciousness
Changes in work hours, leading to risinginterest in how to spend free timeMore communication options (mix of real andonline)More online shopping
More demand for real experiences
Further momentum in SDGs, 2050
carbon neutrality goal
Further efforts to extend qualityadjusted life expectancy28

Changing Business Climate: Growing Interest in SDGs and2050 Carbon Neutrality Goal
With growing interest in SDGs and the 2050 carbon neutrality goal,companies are increasingly expected to contribute to this agenda.
Accordingly, we will take action to demonstrate our commitment.
<Hankyu Hanshin Holdings Group Sustainability Declaration>

Sustainability Declaration（released in May 2020）
Create a future grounded in safety and comfort,
and a future colored by dreams and excitement.

<Contribution to 2050 carbon neutrality goal>
The Government of Japan has
upgraded its 2030 carbon reduction
target2030
target（Compared to FY2014）

26％

46％

 Contributing to SDGs and the carbon neutrality goal will entail significant investment
and additional costs.

<Demand for stronger governance> The growing interest in SDGs is accompanied by a heightened demands oncompanies to strengthen their corporate governance in order to contribute to asustainable world (as part of this trend, it is now critically important to maintainor improve capital efficiency, keeping a close eye on capital costs).
29

Changing Business Climate: Medium- to Long-Term Market Changes 1

Demographics ofJapan

Recovery in
inbound demand

Positive factor, actionThe population of Japan has
been shrinking and aging at ahigh pace. With COVID reducing
birthrates, the pace may further
increase.

 We can help stem the population
decline in line-side areas if weincrease the competitiveness ofthese areas.

Construction costs have risen overthe past ten years and are set tocontinue rising (meaning lower
returns from stocks held over thelong term) Instead of always holding stocks
over the long term, we will offload
underperforming stocks to ensure
reasonable returns (for thebusiness as a whole).

Land prices in Tokyo continue toclimb steeply.
Prices are likely to remain highgiven that demand has remained
brisk even during COVID.

 Select properties carefully toensure profitability of short-termreturns (fix-and-flip) properties.

It will take time for inbound visitor
numbers to return to pre-COVID
levels (must keep an eye on future
trends).

 In the meantime, if we work on
infrastructure andcommunications, we can increase
the competitiveness of the Umeda
and other line-side areas and thus
draw in more visitors when
demand does return.

Construction costs

Real estate market
in Tokyometropolitan area

Negative factor





30

Changing Business Climate: Medium- to Long-Term Market Changes 2
Rapid advances indigitalcommunications



By 2030, the world should movebeyond 5G to 6G, leading tocommunications that far exceed
human senses.



The role of MaaS is shifting fromfacilitating efficient, seamless
mobility, to optimizing events
associated with travel motives (1).

Shift to nextgeneration mobility
MaaS

Negative factor
Positive factor, action

 In anticipation of the impact of 6G,
we will analyze the implications fortransportation services and explore
ways of integrating 6G to level-up
the services.

 By adeptly integrating theservices and content of our Group
companies and external partners,
we can create impetuses fortravel, which will be one way togenerate travel demand as the
population shrinks.

(1) The motives for traveling somewhere (work, shopping, activity)

Reference: Seven Kansai-based rail companies(2), including our own, are exploring ways toroll out MaaS in Kansai with an eye on the 2025 Osaka Expo.
(2) Osaka Metro, JR West, Kintetsu, Keihan, Nankai, Hankyu and Hanshin

Economic growth in
ASEAN



ASEAN countries, whose populations are set to grow, have amazing economic
potential and bright prospects for sustained economic growth.

31

Impact of Changes on Group

Negative factor
Positive factor, action

The changes in the business climate have affected us in the following ways.
•

Changes in travel behavior have hit businesses in the Group that are geared around travel and involve
real-world customer touchpoints. However, we can cope with the impacts by leveraging assets across theGroup.

Less ridership revenue

Revenue loss is limited among our rail
networks

Real EstateLess demand for office space,less revenue from urban
commercial properties

Demand remains strong among OsakaUmeda prime urban real estate (officeand commercial)

HotelsLess demand for travel andparties

We have rediscovered demand forface-to-face service

Urban
Transportation•

COVID has also created possibilities: It has driven up the value of real-world
experiences and content.

•

Our approach from now on requires a digital transformation strategy and acommitment to SDGs and the 2050 carbon neutrality goal.

•

Market changes will accelerate over the medium and long term and many of the
impacts will be negative. However, we still have plenty of room to grow.

The changes pose challenges, but by rising to thesechallenges we have an opportunity to transform and grow.

32

Thinking Behind Updated Vision
To keep growing our value amid these changes, we must do the following:

Set a new vision that covers the late 2030s and thencommit as a group to the transformation necessary toachieve this vision.

<Thinking behind growth goals>• We will continue working on the projects in Osaka (Shibata 1, Naniwasuji Connection Line, Shin-Osaka
Connection Line). Current estimates suggest that these projects will turn a profit in the 2035–2040 period andthen serve as a significant growth driver (even if depopulation accelerates).
• However, the outlook until then is more uncertain than ever. The business climate is set to change inprofound ways over that interval, making it hard to predict what the world will look like in the far-off
period of 2035–2040.
• In the meantime, we must set milestone for sustainable corporate growth (such as FY2031, the endpoint for
the SDGs) and then commit to targets for these milestones.

Based on this thinking, we decided to supplement the envisaged growthscenario for 2035–2040 with financial and non-financial growth goals for
FY2031 in order to clarify our commitment to sustainable corporate growth.
FY2023…

FY2026

Medium-Term Management Plan…

FY2031
Large projects, carbon
neutrality plan
still underway

Long-Term Vision: Toward 2040…

2035-2040
Large projects turn profit,
become growth driver

A vision that covers thelate 2030s
33

FYI: Key Projects in Umeda and Line-Side Areas
These projects in Umeda and line-side area will still be underway in FY2031.
FY2022

FY2023

FY2024

Umeda

Umeda 1-1 Project (Osaka
Umeda Twin Towers South)

FY2025Line-side Area

●End of May 2021:
Completion of construction

FY2027–2031

FY2032–

Umekita Phase Ⅱ Development Project●Around summer 2024:Advance openings●FY2028:Full openings●Sep. 2021:Completion ofphase II construction●Feb. 2022:Complete all
construction
In conjunction with this,Hanshin Osaka-Umeda Station will berenovated (to be completed in FY2025)

LOGiSTA, LogicrossIbaraki Saito

FY2026

Shibata 1
Consultation, negotiation (construction start date to be determined)

Kita-Osaka Kyuko Railway Line
Extension Project●FY2024:Intended start of service
Senri-Chuo Redevelopment
Consultation, negotiation (construction start date to be determined)

Project to rebuild Kobe Hankyu Building’s east wing and renew its west wing
（Kobe Sannomiya Hankyu Building, remm plus Kobe Sannomiya）●April 2021:Opening

Development in public housing site in Koshien (KOSHIEN PLUS)●March 2022: Opening

Development on west sideof Hankyu Nishinomiya
Gardens●September 2023:Opening

Naniwasuji Connection Line/
Shin-Osaka Connection Line
Consultation, negotiation(construction start date to be determined)
34

Where we Want to be in the Long Term
The slogan for the Long-Term Vision

Enhancing line-side areas and expanding fields
With the world set to change in unprecedented ways, the group will work as one to transform ourorganization, make our rail networks and content more attractive, expand our portfolio, maintainfinancial health, and keep capital costs in mind.
This will enable us to...

 ...create and provide the diverse values (safe, comfortable urban life and inspiring experiences) thatwill enhance line-side areas and expand our portfolio, leading to better customer satisfaction andsustained business growth.
 ...meet the expectations of our stakeholders (customers, communities, others) in terms of supportinga sustainable future.
 ...ultimately become a well-balanced, sophisticated corporate group that grows alongside thecommunity (Kansai).
Value for stakeholders
Customers

Improve customer satisfaction by providing safe, comfortable urban life, attractive content, and inspiringexperiences

Communities

Work with the community to make our railways the absolute best in Kansai

Employees

Improve employee satisfaction by providing a diverse and inclusive workplace
This means a workplace that is free from discrimination based on exterior attributes (like gender, age, disability, and nationality)
or interior attributes (like lifestyle, job history, and values) and one that respects individuality and lets employees fulfill their potential.

Partners

Promote mutual trust and mutual growth through the continuous provision of high value-added services

Creditors

Continue to maintain our financial soundness (maintain credit rating)Shareholders

Maintain a stable and generous dividend, with a stable or rising ROE.

Next generation

Make Kansai a vibrant region where young people want to live, visit, and work.

35

Long-Term Vision: General Image
Value Creation Process
Value
accumulates

Leverage external partners
Strategies to achieve vision

Services (value) we provide

Strategy 3

Expand the coverage of our line-sidebusiness model
Strategy 2

Inspiringexperiences

Make our contents as compelling as possibleUse(including
digitalassets)

Better customer
satisfaction

Tangible, intangible corporate resources

Safe,
comfortableurban life

Make our railway the absolute best among
the Kansai networks.

We sustainably enhance corporate value

Strategy 1

High-quality
business
supportStrategy 4

Increase market share by providing highvalue-added services

Hankyu Hanshin DX Project
Initiatives linked with SDGs, 2050 carbon neutral target
Better collaboration with external partners
Financial Policy

Maintain financial health

Keep capital costs in mind
Stable returns

contribution
to asustainable
society
Value forstakeholders
Community
growthContribution
to SDGs,
2050 carbon
neutrality goal

Guided by the Long-Term Vision, we unite and transform

Financial/non-financial KPIS for FY2031
Financial KPIs
Profitability

Operating income¥130.0 billion (plussomething extra)

FinancialhealthCapitalefficiency

Interest-bearing
debt/EBITDA ratio

Between 5–6 times

ROE

7% range over med–
long term

Non-Financial KPIs
Rate of CO2 emissions cuts
46％ down from FY2014 level
Zero culpable incidents in ourrailway businessContinued improvement in employee
satisfaction
Percentage of management positions
held by women Around 10％
Percentage of new hires who are
women
Always more than 30%

36

Long-Term Growth Vision for 2035-2040
 FY2031 (defined in the vision as a milestone for future growth): By that year, we will raise
operating income to ¥130.0 billion by growing existing businesses. We also aim to add something
extra on top of this through a digital transformation project.
 2035-2040: By this stage, large projects will have turned a profit and be driving further growth.

2035-2040: Aim forfurther growth
Operating income (FY2031 target)¥130.0 billion plus something extra
DX drives further growth

DX adds something extra¥130.0billionDX supports existing businesses(enabling better efficiency and saving labor)

Large projects that will be underconstruction or will have entered service¥130.0 billion
from existing
businesses¥115.0billion• Shibata 1 Project• Senri-Chuo Redevelopment• Naniwasuji Connection Line/Shin-Osaka Connection
Line Project, etc.

Progress in large projects¥100.0billionFY2026

FY2031

2035

2040
37

Current Portfolio, Future Direction<Our current portfolio is divided by service and area>
Line-side business
Kansai（Umeda, other line-side areas）
model (e.g. contributeto prosperous
Services connected tocommunities)

Beyond our line-side areas (Tokyo, overseas)

people’s lives (B2C)

Ｂ2Ｃ

Real Estate Sales

Real Estate Leasing

Broadcasting andCommunications

HotelsHorizontal
expansion

Horizontal
expansion
Contents
(B2C)

Ｂ2Ｂ

Healthcare

TravelReal Estate
Leasing

Bring abundant lifestyles of ourline-side areas to other areas (inand outside Japan)
Stage

Stage

Digital infrastructure
for enhancing urban
amenities

Underpin safe, comfortableurban life and Group portfolio

Real Estate
Sales

HotelsEnhance value of rail networks,
revitalize communities

SportsServices connected
to people’s lives(B2C)

Expand regional coverage (beyond our railline-side areas) of competitive businesses
that have potential to expand

Other newinitiatives

Vertical
expansion

TravelContinue enhancing value of line-side areas
to make our railways absolute best
among Kansai networks

B2B information and transportation services(pan-area)
Information
International
Services
Transportation

Enhance value we
provide to increase
market share

Group, line-side areas with added power

Urban
Transportation

Collaborations
with external
partners<Future direction>
We will enhance our businesses and community-building efforts in line-side areas, and start applying our businessand community-building knowhow beyond these areas (both in and outside Japan) to bring us more quickly on
track toward achieving sustainable growth. To that end, we must ascertain changes in the business climate
swiftly and work as a group to adapt to the changes.
38

Strategies for Achieving Vision
Kansai（Umeda and other line-side areas）

Strategy 1

Strategy 3(core strategy)

Make our railway the absolute best among the Kansai
networks (further entrench position in Osaka-Umeda)• To cope with the shrinking and aging population, we will focus on making ourline-side areas much more attractive by engaging in community building,linking up with the new transport connections, actively leveraging digital
innovations (next-generation MaaS, wifi tech), and promoting longer qualityadjusted life expectancy.
• Guided by the Umeda Vision (p.47-49), we will use new projects (e.g. Shibata
1) to make Osaka-Umeda as a whole world-class urban environment.

Strategy 2• Expand customer base and make content more
Make our content ascompellingcompelling as possible • Actively leverage digital tech(develop new content)

Beyond our line-side areas (Tokyo, overseas)

Expand the coverage of
our line-side businessmodel• Expand line-side business model(e.g. building abundantcommunities) beyond line-sideareas Expand Real Estate businesses(e.g. condos, fix-and-flip,
rentals) beyond line-side areas(in and outside Japan)
 Expand competitive contents
beyond line-side areas• Provide compelling travel content to people ofdifferent generations

Strategy 4

Increase market share byproviding high valueadded services• Use tech and knowhow to expand value scope of our businesses• Provide high-quality, competitive services to increase business scale
and market share

Hankyu Hanshin DX Project
Provide new services in digital sphere, introduce groupwide ID

Contribute to SDGs, 2050 carbon neutrality goal
Material issues highlighted in Sustainability Declaration (e.g. environmental protection, empowering
individuals)

39

Strategies for Achieving Vision: Strategy 1
Strategy 1(core strategy)

Make our railway the absolute best among the Kansai networks(further entrench position in Osaka-Umeda)• To cope with the shrinking and aging population, we will focus on making our line-side areas much more attractive byengaging in community building, linking up with the new transport connections, actively leveraging digital innovations(next-generation MaaS, wifi tech), and promoting longer quality-adjusted life expectancy.
• Guided by the Umeda Vision, we will use new projects (e.g. Shibata 1) to make Osaka-Umeda as a whole world-class urban
environment.
Actions for Umeda Vision• Guided by the Umeda Vision, we will work on large
projects (Umekita Phase II, Shibata 1) and upgrade ourreal-estate holdings in order to upgrade the urban
amenities (offices, commercial facilities, hotels), making
Osaka-Umeda as a whole a world-class hub for innovation
and an attractive tourist destination.
New transport connections• With Osaka growing more important as a hub for airport
links (with Kansai’s three airports under joint
management) and land travel (with planning underway
for a new maglev route), we will engage in plans to build
the Naniwasuji Connection Line and Shin-Osaka
Connection Line to leverage land transport links andchannel global dynamism into our line-side areas.
Actively leverage digital innovations• We will capitalize on next-generation MaaS and wifi tech.
• We will apply digital innovations in our railways to savelabor.

Building line-side communities• To increase resident and non-resident populations in our lineside areas, we will develop hub areas (e.g. Senri-Chuo
Redevelopment), build new stations (Mukogawa new station on
the Hankyu Kobe Line), and develop housing.
Senri-Chuo redevelopment
 This redevelopment project includes the construction of
Senri Hankyu, Senri Selci, and Senri Hankyu Hotel in thevicinity of Senri-Chuo Station (see p.51）
Mukogawa new station
 This new station will be built on the Hankyu Kobe Linebetween Nishinomiya-kitaguchi and Mukonoso (on thebridge spanning Muko River)
Promote longer quality-adjusted life expectancy• We will develop businesses that promote longer qualityadjusted life expectancy (e.g. healthcare businesses).
Universal design• We will incorporate universal design (e.g. platform screen
doors) to ensure safe and accessible transport.
40

Strategies for Achieving Vision: Strategy 2Strategy 2Make our content as compelling as possible (develop new content)• Expand customer base and make content more compelling• Actively leverage digital tech
• Provide compelling travel content to people of different generations
Sports• We will deliver compelling sports content (related to Hanshin Tigers, Hanshin Koshien Stadium).
• We will integrate digital tech to enhance our sports services and content.
Stage• To further enhance content, we will develop a system that delivers high quality consistently, ensuring that
Takarazuka Revue remains cherished for the next 100 years.
• We will integrate digital tech to enhance our stage services and content
Travel• We will become the overwhelming leader in a guided tours.
• Over the medium to long term, we will diversify our travel models (enhancing products under specific themes)
and win new customers. We will also expand into non-travel businesses such as support services for local
authorities.
• We will integrate digital tech to enhance productivity in back-office operations (e.g. improve online advertising
for tours).
New content• We will work with external partners to develop new content.
41

Strategies for Achieving Vision: Strategy 3
Strategy 3

Expand the coverage of our line-side business model• Expand line-side business model (e.g. building abundant communities) beyond line-side areas
 Expand Real Estate businesses (e.g. condos, fix-and-flip, rentals) beyond line-side areas (inand outside Japan)
 Expand competitive contents beyond line-side areas

Expand Real Estate businesses beyond line-side areas (in and outside Japan)• We will accelerate efforts to develop our short-term-returns (fix-and-flip) business and expand
the condominium business into redevelopment and rebuilding.
• Japan: In the Tokyo metropolitan area, we will proceed with properties under development while
exploring ways to integrate our hotels and entertainment content into community building
efforts.
• Overseas: In ASEAN markets with bright prospects for sustainable growth, we will leverage ourline-side knowhow and work with external partners to expand the scale of our condominium,
short-term-returns (fix-and-flip), and rental businesses there.
Expand content beyond line-side areas• We will expand Takarazuka Revue content and other content beyond line-side areas (in andoutside Japan).

42

Strategies for Achieving Vision: Strategy 4
Strategy 4

Increase market share by providing high value-added services• Use tech and knowhow to expand value scope of our businesses• Provide high-quality, competitive services to increase business scale andmarket share

Enhance value of services we provide• Information services business: We will expand the scale of the business. We will use our tech andknowhow and engage in tech-related partnerships to develop new information services. We will
also provide information services to support line-side efforts and a digital transformation within
our Group in a way that addresses material issues (for us and our stakeholders).
• International Transportation business: With the global business climate in flux, we will expand thescale of the business (more global-level transaction volume), transform the portfolio (putting
more weight on ocean freight and logistics operations), accelerate business development in Asia,and enter new sectors with bright growth prospects.
Channel dynamism of external partners• We will work closer with external partners, channeling their dynamism into our businesses.

43

Hankyu Hanshin DX Project■ Aims of the Hankyu Hanshin DX Project
The project is designed to digitally transform lifestyles, diversifying customer touchpoints andimproving the customer experience.

The project will leverage the benefits of digital technology to enhance comfort and safety forline-side residents and other stakeholders. Leveraging our own content, the project will combine
digital with real-life to deliver more experiences and interpersonal encounters that fulfil theunchanging need for dreams and excitement.
Four sets of actions in Hankyu Hanshin DX Project

1. Knowing our customers••

Introduce group ID(HH Cross ID)
Integrate and analyze
customer data

３．Delivering the benefits of digitaltechnology to our customers
Prepare:•Free WiFi and other digital infrastructure•
Digital Twin, metabase•
Streaming platforms

2. Communicating with our customers••

Enhance lineup of communication tools suited
to new lifestyles (e.g. HH cross TOWNS)
Further improve communications by
integrating digital tools (e.g. apps) withexisting media

4. Enhancing our content•••

Reorganize and expand contents
Repackage experiences we offer (e.g. travel,
shopping) as new content
Work with partners to develop new content

These four sets of actions will be integrated organically to create
a positive cycle for improving customer convenience and developing new and better
products and services.

44

Contribute to SDGs, 2050 Carbon Neutrality Goal
<Environmental protection (align strategy/targets with 2050 carbon neutrality goal)>• Committing to carbon neutrality by 2050, the Japanese Government has upgraded its 2030
carbon reduction target to 46% reduction from the FY2014 level (compared to 26% before thechange). We have aligned our own carbon reduction target with that of the government’s.

Rate of CO2 emissions cuts（Applies to: HHHD and subsidiaries' Japanese worksites）
FY2031target46％
reduction(compared to FY2014)

FY2051targetNet zero• To reduce energy consumption, we will invest in energy-efficient technology (keeping an eye on
financial soundness and return on investment). We will also keep an eye on technological advances
and introduce renewable energy systems if they are financially viable.

<Empowering individuals (promote employee satisfaction and workplace diversity)>• We must make the most of our talent (our most important asset) if we are to grow our value. To that
end, we must cultivate a workplace culture that respects diversity and lets employees reach their fullpotential.
• Accordingly, we will embrace workplace diversity and inclusion and build such a workplace culture (onethat is motivating, healthy, productive, diverse, and inclusive).
• We will aim for the following targets for FY2031: continual improvement in employee satisfaction,
women occupying 10% of managerial posts, and women making up more than 30% of newhires.

<Non-financial KPIs for FY2031>
Rate of CO2 emissions cuts
46％ down from FY2014 level
Zero culpable incidents in our railway businessContinued improvement in employee satisfaction
Percentage of management positions held by
women Around 10％
Percentage of new hires who are women
Always more than 30%

45

Financial PolicyWe commit to financial stability in the knowledge that this is essential to ensuring the stable provision of products
and services that contribute to the sustainability agenda and to community building. To meet stakeholders’expectations, we will entrench a culture of cost consciousness with a concrete commitment to maintaining or
improving capital efficiency.
Achieve stable baseline profit•

To achieve a stable baseline profit, we will maximize top- and bottom-line growth inour businesses by tightly controlling expenditures and by integrating digital tech ina way that expands revenue opportunities and increases productivity.

Maintainfinancialhealth•We will also tighten risk management in volatile businesses (e.g. overseas realestate businesses)
Maintain financial health•

While we continue to invest capital in large projects and activities to grow ourbusinesses, we also want to maintain our credit rating. Accordingly, we will tighten
control over interest-bearing liabilities, aiming for a D/E ratio of between 5 and 6.

FY2031 target
Operating income¥130.0 billion
plus something
extra (from the cumulative
effect of the DX Project)Interest-bearing
debt/EBITDA
ratio
Between 5–6
times

Maintain or improve capital efficiency (create returns that exceed capital costs)•

Our businesses will keep capital costs in mind, committing to maintain or improvetheir returns with ROIC (= operating income / invested capital) as one of thebenchmarks.

Keep capitalcosts inmind•

To avoid bloated balance sheets, we will be more circumspect about increasing ourstocks (carefully vetting prospective investments with an eye on return), overhaul
business approaches, and offload underperforming assets.

•

ROE
7％ rangeover medium tolong term

We will provide stable and generous shareholder returns, maintaining a reasonable
D/E ratio.

•

Through these measures, we aim for the ROE range shown on the right.

46

(Reference) Background to Umeda Vision (1)The Future Direction of Osaka-Umeda and Kansai
Building an internationally competitive city: Channeling growth opportunities
・With the upcoming Expo 2025 and the casino resort project for 2029, Kansai is garnering attention,
including from overseas.
・Meanwhile, initiatives are underway to make Osaka City a truly international city (for example, Osaka
City has been designated as a National Strategic Special Zone for piloting super-city initiatives, and thenational and municipal governments have unveiled a public-private strategy to make Osaka a global
financial hub).
Piloting the super-city concept in Osaka

Strategy to make Osaka a global financial hub

Super-city initiatives are being piloted in two areas under the theme “datadriven solutions for wellbeing and life”

The global financial hub envisaged

Osaka, Kansai, Expo 2025 (Yumeshima)
Designing a future society for our
lives

Channeling the dynamism of Asia and thewider world
An international city powered by financeUmekita PhaseⅡ

A trailblazing city
A city that leads the world in finance

Life-design, innovation

Osaka-Umeda, at the center of Kansai, will link
the region with the world:
Transport networks/infrastructure will bestrengthened
・Plans are underway to develop new transport connections(Naniwasuji Line, Naniwasuji Connection Line, Shin-Osaka
Connection Line, and the underground JR Osaka Station
scheduled to enter service in spring 2023). If the plansmaterialize, they would significantly enhance air and land
access to Osaka-Umeda, increasing the prospects for OsakaUmeda to channel the dynamism of the country and the world.
47

(Reference) Background to Umeda Vision (2)Osaka-Umeda’s Roles and Strengths
Umekita’s role in addressing social challenges:
Osaka-Umeda as a trailblazer for addressing social challenges
・The prefectural and municipal governments have chosen Umekita Phase II as a critical location for the supercity project. The locale will be center for industry, academia, and government collaboration in creating new
industries that will address social and environmental challenges to sustainability, and a model area forpioneering data-driven digital transformation.
・If the project to make Osaka a global financial hub succeeds in enhancing the international profile of Osakaand Kansai, it will further increase the potential of the locale to draw in from around the world the talent andcapital necessary to grow startups that will create the new industries.
・Having attracted knowledge from around the world, Osaka-Umeda will be a trailblazer in addressing social andenvironmental challenges to sustainability.

Kansai’s solutions to social and environmental challenges
・An aging-friendly society (use of clinical data)
・Stress-free, seamless mobility
・Workplaces that are diverse, empowering, andaccommodate new work practices

・Hotbed for startups and innovation
・Strong preparedness for natural disasters

Osaka-Umeda’s role Lead the way in addressing social challenges
Osaka-Umeda as an unmatched urban locale: Offering something rarely seen elsewhere
・Unlike other urban locales in Japan, Osaka-Umeda features a compact cluster of office, retail, and entertainment
functions, all within walking distance.
・If Osaka-Umeda is to be a place where people around the world want to work or visit, it is necessary to leverage
this rare advantage to ensure that the area accommodates the diverse needs of the new normal.
48

(Reference) Umeda Vision

Strategy 1・Against the backdrop described in pp. 47–48, we have established the Umeda Vision, which envisages OsakaUmeda as an international hub.
・To achieve this, we have set six basic policies that will leverage Osaka-Umeda’s unique value to make thearea a center for creating new industries and an international tourist destination. The policies will alsoenhance Osaka-Umeda’s basic value so that it is equipped for the new normal. Additionally, the strategies will
also promote the Osaka-Umeda brand to an international audience.
Osaka-Umeda’s unique value
An international city that beats thecompetition

A place of co-creationthat produces newer
value

Functions to generate new industries
that will solve the world’s problems

A place thatfacilitates encounters
and interaction

A space for new encounters andexperiences not available elsewhere

A dynamic cluster ofpeople andcompanies

The mechanisms to cultivate theurban culture and values that give
Umeda its appeal

The functions
createdHub forcreating new
industries
International
tourism
destination

International hub

International visitors(visiting for a variety ofreasons)

How Osaka-Umeda
should be

Where people around the world
want to work or visit

TargetBasic Policy 1 : Make Umeda a place of co-creation that produces newer value

Six Basic Policies

An international city withunique value that beats
the competition

The basic value that will
equip Umeda for the
new normal
Promoting the Umeda
brand to the world

Basic Policy 2 : Make Umeda a place that facilitates encounters and interaction
Basic Policy 3 : Make Umeda a dynamic cluster of people and companies
Basic Policy 4 : Make Umeda a place that uses the latest digital technology to offer
new value
Basic Policy 5 : Make Umeda a sustainable place

Basic Policy 6 : Strategically organize marketing and communications to the world49

(Reference) Shibata 1 Development

Strategy 1• To further enhance the value of Osaka-Umeda, we will press on with plans for Shibata 1 Development, which willbe the third major project (following Umeda 1-1 Project and Umekita Phase II Development Project).
Until 2021

Osaka Umeda Twin Towers（2022–）• Forming part of Umeda Vision,
Shibata 1 Development will involve,
among other things, remodeling
Hotel new Hankyu Osaka and theHankyu Terminal Building) and fully
renovating Hankyu Sanbangai. In thisway, the project looks ahead to thenext generation and will leverage thedistinctive characteristics of the rail
terminus to create a multifunctional
hub befitting of the entrance to
Osaka-Umeda.

Umekita Phase Ⅱ openings（FY2028）

Shibata 1 Development

Osaka-Umeda Area

-We have decided to close the Hotel
new Hankyu Osaka around the endof FY2025 because it is seriously
dilapidated and because Hotel
Hankyu Respire Osaka, which is of asimilar scale, opened in an adjacentzone.
• We will develop a specific plan for the
future of the hotel site and accelerate
consultations with government andother stakeholders with a view tolaunching a development project assoon as possible.
50

(Reference) Plan for Senri-Chuo Redevelopment
・Senri-Chuo is a key strategic area for us. In 2019,
Toyonaka City unveiled a plan to redevelop thevicinity of Senri-Chuo Station (outlined in red in the
figure) as part of a new community-development
project. The land here has been partitioned andplans are being brought forward to redevelop thezone.

Overview of the Senri-Chuo area
Map based on GSI geospatial data
（https://maps.gsi.go.jp/#17/34.809594/135.495665/&base=pale&base_grayscale=1&ls=pale&disp=
1&vs=c0j0h0k0l0u0t0z0r0s0m0f1&d=m ）Senri-Chuo multi-story

car park 2

Senri-Chuo multi-story
car park 1

Senri Asahi Hankyu Bldg.

Kita-Osaka Kyuko Line Senri-Chuo station

・Meanwhile, we had decided to close Senri Hankyu
Hotel around the end of FY2026, as the building
was dilapidated. Now, we are exploring ideas for
how to use the site of the hotel. Mindful of theneed to maintain the vibrancy and convenience of
the area around the station, we will keep an eye
on the plans to redevelop the area and decide
about the land use accordingly.

Strategy①

Senri-Chuo multi-story

Hankyu Senri-Chuo Bldg.
（Office buidling）

Senri Hankyu

Senri Selcy（Commercial facilities）（Office building）

Area around Senri-Chuo Station■Time from Senri-Chuo Station to Osaka’s
main terminals（The train runs direct to below stations as theKita-Osaka Kyuko Line is connected with theMidosuji Line of the Osaka Metro)

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

Osaka Monorail

To Umeda

Senri Hankyu Hotel【Legend】
Sole-owned or co-owned properties
H2O Retailing assets
Area flagged for redevelopment(Commercial facilities etc.)※Kita-Osaka Kyuko Railway is extending its line 2.5 km northward from its current
northern terminus, Senri-Chuo Station. The extension will begin service in FY2024.

51

(Reference) Building Stronger Transport Networks

Strategy 1• We engage in the planning process for new lines and stations to make our transport networks
stronger.
Osaka International Airport(Itami Airport)① Kita-Osaka Kyuko Railway Line
Extension Project④Osaka Airport Line

⑤Mukogawa
new station

Juso

KobeSannomiya②NaniwasujiConnection Line
Osaka Bay

Kobe Airport
Hankyu Kobe Line
Hankyu Takarazuka Line
Hankyu Kyoto Line
Hanshin Line

Shin-Osaka③Shin-Osaka
Connection Line

Osaka-Umeda

Under development① Kita-Osaka Kyuko Railway Line
Extension Project
Senri-Chuo – Minoh-Kayano

Under negotiation

Naniwasuji Line

② Naniwasuji Connection Line

Osaka-Namba

JR Osaka (Underground) – Hankyu Juso

③ Shin-Osaka Connection Line
Hankyu Juso – Shin-Osaka④ Osaka Airport Line
Branch line from Hankyu Takarazuka
Line

Kansai International Airport⑤ Mukogawa new station
Between Hankyu Mukonoso and Hankyu
Nishinomiya-kitaguchi
52

Ⅲ. Summary of the Medium-Term
Management Plan

53

Medium-Term Management Plan:
Time Period Covered, Context■ Time period covered• The new medium-term management plan outlines actions we will take over the relevant time period
in order to achieve our updated Long-Term Vision. These actions are designed to contribute to thebusiness and financial strategies for our Long-Term Vision.
• The plan covers four years: FY2023 to FY 2026. In setting this period, we were mindful of how thetargets set in our long-term vision for the milestone year of FY2031.

■ Context• The four-year period will be a time for returning to pre-COVID growth and for laying the foundations
necessary to achieve the Long-Term Vision. The endpoint, FY2026, is the first milestone in this long-term
project.

FY2023

FY2024FY2025

FY2026…

FY2031…

2035-2040

Long-Term Vision: Toward 2040
Milestone for
future growth

Medium-Term Management Plan

Long-term
vision of growth

Endpoint ofMedium-Term
Management Plan

Change in envisaged phased recovery from COVID
FY2021
BeforeFY2022

FY2023Phase 1

Phase 2Phase extended

Now

Phase 1
In Japan, short-distance travel resumes. Travel distances
gradually increase, and the impact of physical distancing
eases off.

FY2025 andbeyondFY2024Phase 3Phase extended

Phase 2
Travel gradually
resumes acrossthe world.

Phase 3
COVID impact abates. Economic
activity returns mostly to normal in
and outside Japan. However, there isno full return to pre-pandemic times.

54

Crisis Recovery Phase Extended• The COVID impact persisted in FY2022. Repeated states of emergency were declared during H1, andalthough the situation seemed to have abated in Q3, Q4 (Jan–Mar 2022) saw a resurgence in infections.
• Given that this situation prevented the recovery we had expected, we have extended the crisis recovery
phase to FY2023. This means the current year, like the previous one, is a time to focus on recovering
performance in our existing businesses.

FY2021

FY2022

BeforeCrisis Recovery Phase

Now

Crisis Recovery Phase

FY2023

FY2024 and beyond

Extended Crisis
Recovery Phase

Actions during Crisis Recovery Phase
Profit/loss

・We will work to recover earnings.
・We will eliminate or transfer fixed costs (to variable costs).

Recover performance ASAP

Capitalallocation

Investment inmaintenanceand renewal

・We will continue to control the budget forsuch investment.

Growthinvestment

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

Improve financial health
Provide leeway forinvesting toward growth55Medium-Term Earnings Targets
FY2023
FY2024–FY2025
FY2026

Many businesses will recover from the COVID impact. Supported by the measures we take in the Crisis Recovery
Phase, they regain 2/3 of the pre-COVID profit level in two years from the COVID-blighted year of FY2021.
Our businesses recover further from the COVID impact and make headway in strengthening their earnings
structure (adapt to changes in demand structure and boost productivity), paving the way for us to get
operating income back to the pre-COVID level of ¥100.0 billion as soon as possible.
With these actions to strengthen balance sheets, we surpass the pre-COVID figure and aim for operating incomeof ¥115.0 billion, which will put us in range of the FY2031 milestone (¥130.0 billion with something extra).

1,200¥100.0 billion
level

1,000

Crisis Recovery
Phase

Baseline profit level

Climb back to¥100.0 billion
level

FY2031¥130.0 billion

800
600

TargetResults

400

with something
extra

Impact of COVID-19
Approx.-¥100 billion

2/3 of pre- COVID
level

FY2026¥115.0 billion

200
0

(FY)

2019

Pre-COVID

2020

2021

2022

Phase 1

2023

2024

Phase 2

2025

2026

Phase 32031
56

Key Actions to Achieve Medium-Term Targets
Key actions linked with the four strategies in Long-Term Vision
1. Strengthen earnings structure (adapt to changes in demand structure
and boost productivity)
Lifestyles will never return to as they were before COVID, so if our businesses fail to adapt, they risksustaining serious damage. We must therefore work as a group to strengthen earnings structure
and improve our financial health (with a recovery in EBITDA).
Accelerate with measures for
Crisis Recovery Phase

2. Transition to keeping capital costs in mind
To meet the expectations of our stakeholders over the medium to long term, we will transition tokeeping capital costs in mind in line with the financial strategy for our Long-Term Vision.

3. Implement digital transformation
Our Long-Term Vision requires a digital transformation. Our businesses will proceed with a digitaltransformation with a sense of urgency. The Hankyu Hanshin DX Project will coordinate digital
efforts across the Group to create more impactful outcomes.

4. Contribute to SDGs and 2050 carbon neutrality goal
Guided by our Sustainability Declaration, we will contribute to the SDGs and 2050 carbon
neutrality goal.
57

Key Action 1 Strengthen Earnings Structure(adapt to changes in demand structure and boost productivity)

Main impacts in our businesses
Less ridership revenue（Urban Transportation）

Less office demand, lower sales in city-center
shopping facilities（Real Estate）

Less demand for businesstrips and parties（Hotels）

Rough outlook for ridership revenue

Projections for ridership revenue(relative to FY2019), excluding effects
of key actions

Despite gradual recovery,
ridership revenue (particularly commuter passes)
never returns to pre-COVID levels.

FY2023

FY2026

Commuter pass

Around -10％

Around -10％

Other tickets

Around -10％

Similar toFY2019 level

Specific actions
Urban
Transportation

Real EstateEntertainment

•
•
•
•

Update schedule to reflect changes in travel demand (e.g. changes in commute times) Improve businessefficiency
Improve efficiency in rail operations (e.g. station operations)
Roll out platform doors and other safety measures
Introduce premium seating
Target year: 2024
(seats reserved for a surcharge)

Improve safety andtravel services

Develop (improve value in) Umeda and other key line-side areas (e.g. Senri-Chuo)
Increase market share and brand power in domestic condominium sector (establish commanding lead in
Kinki region)• Advance into target short-term-returns (fix-and-flip) sector (rental condos, shopping facilities, offices,logistics facilities)• Overseas: Expand scale of housing (particularly in ASEAN), short-term-returns (fix-and-flip), and rental
businesses• Overhaul hotels business (divest underperforming hotels, reduce fixed costs)

Strategies forLong-Term
VisionStrategy 1••

Recover admissions for baseball games ASAP; use digital technology to introduce new services andother services to streamline operations• Recover admissions for Takarazuka Revue shows ASAP; expand stage content (e.g. streamlining)•

Strategy 1
Strategy 3

Strategy 2

Information andCommunication
Technology•

Expand scale of information services (e.g. DX solutions)

Strategy 4

Travel••Improve online advertising for tours (reduce costs)
Expand to non-travel services (e.g. support services for local authorities)

Strategy 2

International••

Expand scale of business (more global-level transaction volume)
Transform the portfolio (putting more weight on ocean freight and logistics operations )Strategy 4

Transportation

58

Key Action 2 Transition to keeping capital costs in mind
Specific actions
Control capital spending by placing greater importance on getting a returnthat exceeds capital cost

Be more selective in where to invest• Vet prospective investments more rigorously, using ROIC as a benchmark of
return on investment

Change approach to businesses and assets• Calculate the ROIC for each business and use this as a guide when managing thebusinesses.
• Where returns fall short of capital cost, turn performance around ASAP or (if there
is no prospect for a turnaround), radically overhaul the business.

• Consolidate or offload underperforming assets• Actively advance into target short-term-returns (fix-and-flip) business• If necessary, externalize assets (REITs, real-estate funds)

Through these actions, we aim to reach the ROE target in the LongTerm Vision
Financial target for FY2031
in Long-Term Vision

ROE
7% range over medium to long term
59Key Action 3 Implement Digital Transformation
Key group-wide actions• Implement Hankyu Hanshin DX Project• Integrate each business’s customer data and analyze it using Data Analytics Lab; use thefindings to guide marketing and the development of new products and services
Data Analytics Lab
This is an analytics program we launched in April 2021 in collaboration with
the University of Tokyo. It is designed to integrate and analyze each business’s
customer data (e.g. customer attributes, service use history).

Actions in each segment
Urban
Transportation
Real EstateEntertainment

Travel• Use new tech to streamline travel services and maintenance operations• Use AI and robotics to streamline facility management, cleaning, security, etc.
• Use new tech to provide new user (visitor) experiences and to pilot new ideas• Enhance lineup of original services delivered on digital media (portal sites, apps) and
improve digital marketing/communication• Explore new VR- and AR-powered experiences• Use customer analytics to guide CRM• Use smartphone apps to strengthen customer touchpoints before, during, and after
travelViewers can zoom
in on the action

Video tech used to deliver virtual baseballexperience (Koshien Plus)

Zoomed-in images are
high-res

High-quality livestreams of Takarazuka Revue shows using latest tech(e.g. 8K ultra-zoom feature)（Takarazuka Revue)

60

Key Action 4 Contribute to SDGs and 2050 Carbon Neutrality Goal
Current actions and their outcomes• Our ESG actions and active disclosures have garnered the following accolades from ESG-rating organizations:

In the MSCI ESG Fund Ratings (*1), we got our first AAA rating (the highest rating).
(As of September 2021, we are ranked second in the over-land transportation sector out of 32 companies [we are first among
Japanese companies])

We were listed in the MSCI Japan ESG Select Leaders Index(*2) for the fifth year running.
We got a 4-star rating in the Nikkei SDGs Management Survey (top level among railway companies)*1 The MSCI ESG Fund Ratings is provided by Morgan Stanley Capital International (a leading US provider of financial services). There are seven
rankings.
*2 This index lists companies that lead their sector in ESG performance. Japan’s Government Pension Investment Fund (GPIF), the world’s largest
pension fund, uses the index as one of its ESG-themed benchmarks for passive investment.

Actions in each segment
Urban
Transportation•

Switch to energy-saving rolling stock, switch to electric/hybrid buses/taxis•

Install solar panels on roofs of plants and rail depots, install apparatus to store the energy generated•

Use business continuity planning to prepare for natural disasters•

Prepare to install security cameras on trains ASAP (In December 2021, MLIT announced that this will be mandatory in new rollingstock)

Real EstateEntertainment
Information andCommunication•

Decarbonize leased facilities (switch to energy-efficient tech, generate renewable energy, procure sustainableenergy)•Make new properties qualify as net-zero buildings (ZEBs) or net-zero-energy houses (ZEHs)•

Implement KOSHIEN “eco” Challenge•

Actively provide sports and stage experiences to groups of preschoolers/schoolchildren•

Provide technological solutions that contribute to rail safety•

Continue charitable giving and awareness campaigns through Hankyu Hanshin Dreams and Communities of
the Future ProjectTechnology

All segments

61

Some organizational changes（from April 2022）• Currently, we are structurally reforming the Hotels segment (disinvesting underperforming hotels and cutting
fixed costs). We also plan to close two dilapidated hotels (Hotel new Hankyu Osaka and Senri Hankyu Hotel)
and use the sites of the hotels more effectively, in a way that helps develop the area.
• Given these changes, we decided to consolidate the Hotels segment into the Real Estate segment, starting fromFY2023. We believe that this consolidation will enable more effective management of community-development
projects, multipurpose developments, and similar projects, including those involving the sites of the two
abovementioned hotels (in connection with community building, the Hotel (sub-) segment will play a role inenhancing the attractiveness and amenities of urban areas).

Before: Six core companies, seven core business segments (bold font indicates core company)

Hankyu Hanshin Holdings
Urban
Transportation

Real Estate

HankyuCorporation

Entertainment

Information andCommunication
Technology

HankyuHanshin
Properties
Hanshin Electric Railway

Real Estate

TravelInternational
Transportation

HotelsHankyuTravelInternational

HankyuHanshin
Express

HankyuHanshinHotelsReal estateleasing
Real estate
sales and others

HotelsFrom April 2022: Five core companies, six business segments (bold font indicates core company)
Hankyu Hanshin Holdings
Urban
Transportation

Real Estate

HankyuCorporation

HankyuHanshin
Properties
Hanshin Electric Railway
Hankyu Hanshin
HanshinHankyuHotelsHotelsInformation andEntertainment Communication
Technology

Real Estate

TravelInternational
Transportation

HankyuTravelInternational

HankyuHanshin
Express

Hotels segment merged with Real Estate segment
Hankyu Hanshin Hotels is not a core company, but it will continue
to manage the hotel business

Real estateleasing
Real estate
sales and others
Hotel is now a subsegment of the Real
Estate segment

Hotel

62

Operating Income Projections(¥billion)

Blue: Positive contributors Red: Negative contributors
FY2022 result ⇒ FY2023 forecast ＋¥23.8 billion

FY2022 ⇒ FY2023 ⇒ FY2026】

115.0

Recovery from COVID impact (domestic demand)・Higher revenue from railway operations and automobile business・Recovery in domestic demand for hotel accommodation
・ Higher admissions and more shows in Entertainment segment

・ Recovery in demand for domestic travel
International Transportation: Supply crunch gradually eases
FY2023 forecast ⇒ FY2026 target ＋¥52.0 billion

Recovery from COVID impact (domestic and inbound demand)

63.0

・Recovery in domestic and inbound demand leads to higher revenue fromrailway operations
・ Recovery in domestic and inbound demand for hotel accommodation

39.2

・Higher admissions and more shows in Entertainment segment
・Recovery in demand for international travel
With Umeda Twin Towers South entering service, rental income increases

ResultForecast

Medium-termtargetFY2022

FY2023

FY2026Higher revenue from expansion of real estate sales business (e.g.
condominiums)
Higher revenue from expansion of overseas Real Estate business

Growth in Information and Communications Technology
63Cash Flow
■Capital allocation strategy‧ Cumulative EBITDA over the medium-term period should come to approx. ¥640.0 billion.
‧ For cash outflow, we will rein in maintenance and renewal CapEx and allocate more to growth CapEx (projects forhigher future growth). We will deliver stable and continuous dividends to shareholders, using total payout ratio as anindicator, and also buy back shares. Consequently, cash out should come to approx. ¥730.0 billion.
‧ This will create an approx. ¥90.0 billion shortfall. To cover this, we will borrow additional funds (i.e. increase interestbearing debt), keeping interest-bearing debt/EBITDA ratio in mind.

Cash in

EBITDA
640.0＋
Additionalborrowing etc.

90.0

Hypothetical cumulative cash flow for FY2023–2026
Cash out
Strategic investment-30.0
framework

Growth CapEx-290.0This includes investments in for-sale property
and net increases in equity.

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

-170.0(¥billion)

This includes
investments in
M&A

Capital investment(including lending)-560.064Capital investment
Hypothetical cumulative cash flow for FY2023–2026(¥billion)

Capital investment (including lending)

560.0

Strategic
investment
framework

Main projects

30.0

Urban
‧ Installation of platform doors, accessibility
Transportation improvements‧ Kita-Osaka Kyuko Railway Line
Extension Project‧ Naniwasuji Connection Line / Shin-Osaka
Connection Line
Real Estate

Growth CapEx

290.0

This includes investments in for-sale property
and net increases in equity.

Maintenance CapEx(investment inmaintenance andrenewal of existing
infrastructure)

240.0‧ Umekita Phase Ⅱ Development Project‧ Shibata 1 Development‧ Senri-Chuo Redevelopment‧ Developments in Tokyo: Yaesu 2 Naka,
site of Hotel Grand Palace‧ Overseas expansion in Real Estatesegment‧ Expansion in domestic condominium
business‧ Expansion of short-term-return (flipand-fix) businessEntertainment ‧ Relocation of Hanshin Tigers farm teamfacility
Other‧ IT strategy, DX investments65Performance Indicators (–FY2026)
FY2022
Results

FY2023
Forecasts

FY2026
Targets

Operating income¥39.2billion¥63.0billion¥115.0billion

EBITDA※1¥100.7billion¥128.0billion¥190.0billion¥1,096.0billion¥1,130.0billion¥1,180.0billion

Interest-bearing debt /EBITDA ratio

10.9times

8.8times

6.2times

D/E ratio※2

1.3times

1.3times

1.1times¥21.4billion¥35.0billion¥75.0billion

2.5%

4.0%

7% range¥1,064.6billion¥1,105.0billion¥1,155.0billion

10.6times

8.6times

6.1times

Interest-bearing debt

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

66

Ⅳ. Forecast for fiscal 2023
(Ending March 2023)

67

Consolidated Statements of Income (Summary)（￥ billion）

FY2023
Forecasts

FY2022
Results

Change①②＝①－②

Revenue from operations

915.0

746.2 +168.8 (＋22.6%) Urban Transportation andOperating income

63.0

39.2

most other segments are on
track to recovering from the
COVID slump of the previous+23.8 (＋60.7%) year.

Ordinary income

62.0

38.5

+23.5 (＋61.2%)

Net income attributable toowners of the parent

35.0

21.4

+13.6 (＋63.4%)

Capital Expenditures

89.0

120.3

-31.3

Depreciation and amortization

62.7

59.1

+3.6

Financial balance (1) - (2)

-7.6

-7.4

-0.2

Interest and dividend income(1)

1.0

1.1

-0.1

Interest expense(2)

8.6

8.5

+0.1

Remarks（Reference）

68

Consolidated Statements of Income (Breakdown for each business segment)(¥ billion)[Upper table]
Revenue from operations[Lower table]
Operating income

Total

FY2023
Forecasts

FY2022
Results

Change

①

②

=①-②

915.0

746.2

+168.8

63.0

39.2

+23.8

188.4

161.6

+26.8 business segment will recover from the effects of the pandemic (Hankyu and

21.3

5.6

296.0

246.6

+49.4 Revenue and income growth are expected on the assumption that the

25.1

19.4

+5.7

72.1

62.9

+9.2 segment will recover from the effects of the pandemic (the sports business

Remarks(Breakdown for each business segment)
Urban Transportation

Real EstateEntertainment
Information andCommunication
Technology

Hanshin lines and the automobile business will see an upturn in fare+15.7 revenue).

segment will recover from the effects of the pandemic (the hotels businesswill see an upturn in accommodation and food/beverage businesses).
Revenue and income growth are expected on the assumption that thewill see an upturn in admissions for Hanshin Tigers’ regular season games
and the stage business will see higher audiences for Takarazuka Revueshows).

11.2

9.3

+1.9

63.9

59.2

+4.7 increase in orders for information services. Income is forecasted to stay flat

5.9

5.9

+0.0 increase in personnel expenses following business expansion.

160.0

60.4

+99.6 segment will recover from the effects of the pandemic (with renewed

TravelInternational
Transportation

Revenue and income growth are expected on the assumption that the

-1.9

-5.7

120.0

143.3

4.5

8.0

Revenue growth is forecasted because the segment is expected to post an

because of an increase in sales costs associated with revenue growth and an
Revenue and income growth are expected on the assumption that the+3.8

demand for domestic travel), and this recovery will likely offset a decrease inorders in non-travel businesses such contracts for managing accommodation
for COVID patients.

-23.3 Decreases in revenue and income are expected on the assumption that the-3.5

supply crunch for air and ocean transportation will steadily ease.

Note: The FY2022 results for the Real Estate segment have been aggregated in way that enables comparison with FY2023; they
may be aggregated differently in the future.

69

COVID-19 Impact in Each Segment (assumptions for Fiscal 2023 forecasts)
Stated below are the assumptions underlying the full-year forecasts.
<Railway>
Revenue from other (non-season) tickets will gradually recover. From January 2023, the revenue will be less than
10% lower than result for the same period in FY2019. The impact on worker commuter pass revenue will persist
throughout the period (the revenue will be around 10–15% lower than the FY2019 level).
Urban
Transportation

The period-average for student commuter pass revenue will be around that of FY2019.
<Automobile>
For transit buses, the impact will be similar to that for railway.
For airport shuttle buses, the impact will depend on outlook for air travel (demand for international flights at KansaiInternational Airport will start recovering in H2).
<Real estate leasing>The business will recover significantly from the level of the previous year, when the state of emergency (store
closures, reduced hours) impacted the segment.
<Hotels>

Real Estate

Regarding accommodation, domestic demand will start to gradually recover at the start of the period and inbounddemand will start to gradually recover in H2 (for hotels managed directly by Hankyu Hanshin Hotels [excludes hotel
locations opened in FY2020 or later], as of March 2023, domestic demand will be around 10％ less, and inbounddemand will be around 80% less, than it was in the same period in FY2019).
Likewise, food/beverage will start to gradually recover at the start of the period.
<Sports>

Entertainment

For pro baseball, we predict that baseball revenue will recover significantly from the previous year’s slump provided
that all seats for Hanshin Tigers’ regular season games will be sellable.
<Stage>For Takarazuka Revue, we predict that theater production revenue will recover from the slump in the previous year
(when a number of shows were cancelled) provided that theaters return to full capacity (excluding frontmost seats).

TravelWe predict that domestic tours will recover significantly from the start of the period (full-year performance will bearound that of the FY2019 level).
International tours will reopen in H2 and should start recovering around the end of the year (the revenue will bearound 85% lower than the FY2019 level).
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Outlook for Operating Income（FY2021→FY2023）•

The following table illustrates how operating income recovers over a three-year (FY2021–
FY2023) as the COVID impact gradually diminishes.

•In FY2021 and FY2022, we recognized as extraordinary losses the losses we sustained inrelation to COVID (e.g. fixed expenses during periods when operations were suspended
and costs associated with cancellations of events). Thus, in real terms, the FY2022 resultis ¥47 billion higher than the FY2021 result, and the forecasted FY2023 result is more thana ¥33 billion higher than the FY2022 result.
（¥ billion）

FY2021ResultOperating income （①）

2.1

COVID-19-related losses （②）-19.4

Real-terms operating income （①
＋②）

-17.3

FY2022
Result
＋37.1

39.2

＋23.8

-9.5
＋47.0

29.7

Main contributors: Change in seven corebusiness segments (including Hotels)

Urban Transportation +¥11.4 billion,
Real Estate＋¥5.2 billion,
Entertainment +¥14.5 billion,
Travel＋¥4.8 billion, International
Transportation＋¥5.7 billion,
Hotels +6.4 billion

FY2023
Forecast

Main contributors: Change in six core

63.0
－

＋33.3

63.0

This forecasted result would
mean that operating income
has reached 2/3 of the preCOVID level (¥100 billion) levelin two years from FY2021.

business segments

Urban Transportation +¥16.3 billion,
Real Estate＋¥10.4 billion（in which,hotels ＋¥8.8 billion）,
Entertainment +¥3.6 billion,
Travel+¥6.2 billion

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[Urban Transportation] Railway Performance Forecasts
Hankyu Corporation
Fare revenues (¥ million)*
FY2023
Forecasts

FY2022
Results

Passenger volumes (Thousands)*

ChangeFY2023
Forecasts

FY2022
Results

ChangeCommuter pass

29,70028,654+1,045(＋3.6%)

303,765

282,633 +21,132(＋7.5%)

Workers

25,36625,223+143(＋0.6%)

205,919

204,916(＋0.5%)

Students

4,334

3,431

+902 (＋26.3%)

97,846

77,717 +20,129 (＋25.9%)

Other tickets

56,45645,422 +11,033 (＋24.3%)

284,040

228,028 +56,011 (＋24.6%)

Total

86,156

74,077 +12,079 (＋16.3%)

587,805

510,661 +77,144 (＋15.1%)+1,003

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2023
Forecasts

FY2022
Results

Passenger volumes (Thousands)*

ChangeFY2023
Forecasts

FY2022
Results

ChangeCommuter pass

10,85910,628+230(＋2.2%)

113,136

110,096+3,039(＋2.8%)

Workers

9,651

9,668

-16

(-0.2%)

87,754

89,400-1,646(-1.8%)

Students

1,207

960

+247 (＋25.7%)

25,382

20,695+4,686 (＋22.6%)

Other tickets

19,356

15,397+3,959 (＋25.7%)

105,587

84,103 +21,483 (＋25.5%)

Total

30,21626,026+4,189 (＋16.1%)

218,723

194,199 +24,523 (＋12.6%)＊ 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.

72

Returns to Shareholders■Shareholder Return Policy•

We aim to deliver steady dividends to shareholders, as measured by a total payout
ratio of 30%, and steadily acquire treasury stock, while working to enhance ouroperating foundation.

•

We will cap our treasury holdings at 5% of total outstanding 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])(Net income attributable to owners of parent in FY[N])× 100■Specific figures for dividend of surplus•

In order to keep the dividend at the stable level, the fiscal 2022 annual dividend■

will be the same as fiscal 2022: ¥50 per share (¥25 interim + ¥25 year-end)※.
※ Subject to shareholder approval at the General Meeting of Shareholders on June 15, 2022•

Likewise, for fiscal 2023, we expect to deliver a dividend at the same level again:¥50 per share (¥25 interim + ¥25 year-end).

73