Hankyu Hanshin Holdings Group
Supplementary Materials of
Financial Results for the Third Quarterof Fiscal 2022 (Ending March 2022)
January 31, 2022
Hankyu Hanshin Holdings, Inc.
9042 https://www.hankyu-hanshin.co.jp/en/

Business 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.

Ⅰ. Performance Highlights for the Third
Quarter of Fiscal 2022
(Ending March 2022)1

Consolidated Statements of Income(Summary)
Q3 FY2022
Results

FY2021Results

ChangeConsolidated Subsidiaries
Equity-Method Affiliates
Total

98 companies
11 companies
109 companies

95 companies +3 (3 companies increase)
11 companies
106 companies +3(¥ million)

Q3 FY2022
Results

Q3 FY2021
Results

Impact of applying ASBJ 29+￥21.9 billion

Revenue from operations
Operating income

517,162
27,278Change394,037 +123,125 （ ― ） For details,-4,841 +32,119 （ ― ）Non-operating income

8,712

3,374

+5,338Non-operating expenses

7,917

8,354

-437

Ordinary income

28,074Extraordinary income

40,866

7,726

Extraordinary loss

36,533

16,846+19,687

18,827Q3 FY2022
Results（Reference）

please see next page

Equity in income of affiliates +5,179-9,821 +37,895 （ ― ）+33,140

Net income attributable toowners of the parent

Remarks

Gain on contributions for construction +26,871
Gain on sale of investment securities +3,535
Employment adjustment subsidies +1,533
Loss on reduction of noncurrent assets +26,862
COVID-19-related losses -6,830

ASBJ 29 (Accounting Standard for Revenue-16,858 +35,686 （ ― ） Applying
Recognition) impacts revenue from operations in two

Q3 FY2021
Results

ChangeDepreciation and amortization

43,45641,000+2,456

Financial balance ① - ②-5,459-5,728+269

Interest and dividend income①

976

975

+1

Interest expense②

6,435

6,703

-267

Note: The percentage changes are not shown because the figures for FY2022 Q3 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.

2Consolidated Statements of Income (Breakdown for each business segment)[Key results in current period]
Revenues and income increased overall. While most business segments continued feeling
pandemic impact, the impact had lessened compared to the same period last year.
Revenue from operations(¥ million)

Q3 FY2022
Results

Q3 FY2021
Results

Urban Transportation

120,740

116,097

Real Estate

150,766

Entertainment
Information and Communication
Technology

Operating income
Q3 FY2022
Results

Q3 FY2021
Results+4,643

4,949-3,735+8,684125,907+24,859

22,878

19,106+3,772

49,88328,782+21,101

10,285-1,575+11,860

41,20239,407+1,794

3,025

3,267

-241

34,4488,118+26,330-7,743-7,448-295

International
Transportation

98,56858,478+40,090

5,615

1,029

+4,585

Hotels

18,555

14,762+3,792-9,305-13,580+4,275

Other34,02432,224+1,800

1,097

908

+188

Adjustment-31,028-29,741-1,287-3,524-2,813

-710

Total

517,162

394,037+123,125

27,278-4,841+32,119

ChangeChangeImpact of applying ASBJ 29

Travel+￥27.6 billion

3Consolidated Statements of Income by Segment (Four-Year YoY Comparisons)From left to right: FY2019 Q3, FY2020 Q3, FY2021 Q3, FY2022 Q3
576.5 583.7

177.8

517.2

Revenue from operations

175.5
162.4

174.8

(¥ billion)

150.8

394.0

125.9

116.1 120.7

98.6
Impact of applying ASBJ 29+￥27.6 billion

59.5 62.0
39.9
33.7

28.8

68.3

57.4 58.5

49.9

39.4 41.2

49.3 48.7

34.4

27.4 30.7

14.8 18.6

8.1

Urban

【Total】

Real EstateEntertainment

Transportation

Information andTravelCommunication

International

HotelsTransportation

Technology
92.2 91.0

Operating income
35.3 36.2

36.2
32.7
22.9
19.1

27.3

13.8 15.2
10.3

4.9

-4.8

2.4 3.3 3.3 3.0

2.2

5.6

4.5

2.1

1.4 0.4

-0.3

-1.6

-3.7

1.0

-7.4 -7.7

-9.3

-13.6

【Total】

Urban
Transportation

Real EstateEntertainment

Information andCommunication

TravelInternational

HotelsTransportation

Technology

4Outlook for Operating Income（FY2021 Q3→FY2022 Q3）••In FY2022 Q3, operating income was up ¥32.1 billion YoY because, while businesssegments continued feeling pandemic impact, the impact had lessened compared tothe same period last year.
The actual increase was ¥38.9 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 Q3, theextraordinary losses totaled ¥15.4 billion. In FY2022 Q3, they totaled ¥8.5 billion.

FY2021 Q3

FY2022 Q3
27.3
COVID-19related losses

-8.5

18.8
+¥32.1 billion+¥38.9 billion△4.8

COVID-19related losses

-15.4

△20.2

Urban Transportation +¥9.1 billion,
Real Estate +¥4.7 billion,
Entertainment +¥14.9 billion,
Travel +¥1.5 billion,
International Transportation +¥4.6 billion,
Hotels +¥4.6 billion
5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 same period last year.

（\ million）

Q3 FY2022
Results

Revenue from operations

Q3 FY2021
Results

Change％120,740

116,097+4,643

＋4.0%

4,949

-3,735+8,684―

Operating income[Breakdown by type of business]（\ billion）

Revenue from operations
Q3
FY2022
Results

Railway
Automobile

Q3
FY2021Results

Operating income

Y on YQ3
FY2022
Results

Q3
FY2021Results

Y on Y

88.5

83.5

+5.1

12.0

6.9

+5.0

25.3

24.3

+1.0

-3.2

-5.6

+2.4

8.2

10.4

-2.2

0.7

0.6

+0.0

4.9

3.5

+1.3

0.1

0.1

+0.1

Impact of applying ASBJ 29

Retailing
Others-￥2.9 billion*Not including head office expenses /adjustments.

6

[Urban Transportation] Railway Performance results
Hankyu Corporation
Fare revenues (¥ million)*
Q3 FY2022
Results

Q3 FY2021
Results

Commuter pass

21,741

21,209Workers

18,980Students

Passenger volumes (Thousands)*
Q3 FY2022
Results

Q3 FY2021
Results+531 (＋2.5%)

216,572

210,931+5,641 (＋2.7%)

19,330-350 (－1.8%)

154,242

163,680-9,438 (－5.8%)

2,760

1,878

+882 (＋47.0%)

62,33047,250 +15,079 (＋31.9%)

Other tickets

33,89930,231+3,668 (＋12.1%)

170,476

153,670 +16,806 (＋10.9%)

Total

55,64051,440+4,200 (＋8.2%)

387,048364,601 +22,447 (＋6.2%)

ChangeChangeHanshin Electric Railway
Fare revenues (¥ million)*
Q3 FY2022
Results

Q3 FY2021
Results

Commuter pass

8,037

7,902

Workers

7,273

Students

Passenger volumes (Thousands)*
Q3 FY2022
Results

Q3 FY2021
Results+134 (＋1.7%)

83,846

81,381+2,464 (＋3.0%)

7,355-82 (－1.1%)

67,35068,731-1,381 (－2.0%)

763

546

+217 (＋39.7%)

16,495

12,650+3,845 (＋30.4%)

Other tickets

11,48010,167+1,312 (＋12.9%)

62,63256,493+6,139 (＋10.9%)

Total

19,51718,069+1,447 (＋8.0%)

146,478

137,874+8,603 (＋6.2%)

ChangeChange＊ 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).

7

【Reference】 Recent performance in railways■Ridership (compared to same period of fiscal 2019 ）《Hankyu Corporation》

The state of emergency

Commuter pass

Other tickets

The state of emergency

Commuter pass

Other tickets

（％）
0.0
-20.0
-40.0
-60.0
-80.0

《Hanshin Electric Railway》（％） 0.0
-20.0

-40.0

-60.0

-80.0

8

Real Estate Results
Increase in revenue and income. The real estate leasing business sold short-termreturns properties and its rent revenue recovered relative to the Covid-related slump of
the same period last year. Additionally, the real estate sales business saw a year-onyear increase in condominium sales.
【Reference】 Condominium sales (condominiums held by the group)︓+212 units（622units; previous year 410 units）（\ million）

Q3 FY2022
Results

Q3 FY2021
Results

Change％Revenue from operations

150,766

125,907+24,859＋19.7%

Operating income

22,878

19,106+3,772＋19.7%[Breakdown by type of business]（\ billion）

Revenue from operations
Q3
FY2022
Results

Q3
FY2021Results

Y on Y

Operating income
Q3
FY2022
Results

Q3
FY2021Results

Y on Y

Real estate leasing

84.3

73.4

+10.9

24.2

22.5

+1.7

Real estate sales
and others

79.2

65.0

+14.2

4.9

3.0

+1.9

*Not including head office expenses /adjustments.

9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 same period
last year, when many of the events were postponed or cancelled, the sports businessbenefitted from an upturn in Hanshin Tigers’ regular season games, and the stage
business benefitted from an upturn in Takarazuka Revue shows.

（\ million）

Q3 FY2022
Results

Q3 FY2021
Results

Change％Revenue from operations

49,88328,782+21,101＋73.3%

Operating income

10,285-1,575+11,860―[Breakdown by type of business]（\ billion）

Revenue from operations
Q3
FY2022
Results

Q3
FY2021Results

Y on Y

Operating income
Q3
FY2022
Results

Q3
FY2021Results

Y on YSports

23.8

16.3

+7.5

5.4

-1.0

6.4

Stage

26.1

12.5

+13.6

5.9

0.4

5.5

*Not including head office expenses /adjustments.

10

Information and Communication Technology results
Revenue increased due partly to an increased number of subsidiaries in the broadcasting andcommunications business. However, income decreased from the high level of the same period lastyear, when there was a large order in the information services business.

（\ million）

Q3 FY2022
Results

Q3 FY2021
Results

Change％Revenue from operations

41,20239,407+1,794＋4.6%

Operating income

3,025

3,267

-241

-7.4%

Travel results
The segment continued feeling pandemic impact (cancellations of international tours), but revenue
from operations increased following the application of the ASBJ29 at the beginning of the period.
However, income decreased because, despite higher orders in non-travel businesses such as contracts
for managing accommodation for Covid patients, revenue dipped relative to the same period last year,
which saw a surge in domestic travel demand.

（\ million）

Q3 FY2022
Impact of applying ASBJ 29
Results+¥27.6 billion

Q3 FY2021
Results

Change％Revenue from operations

34,4488,118+26,330＋324.3%Operating income-7,743-7,448-295―
11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）

Q3 FY2022
Results

Q3 FY2021
Results

Change％Revenue from operations

98,56858,478+40,090＋68.6%

Operating income

5,615

1,029

+4,585＋445.5%

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 same period last year.

（\ million）

Q3 FY2022
Results

Q3 FY2021
Results

Change％Revenue from operations

18,555

14,762+3,792＋25.7%

Operating income-9,305-13,580+4,275―12

Consolidated Balance Sheets

Assets（\ million）

Q3 FY2022
Results

Remarks

334,687

325,307

Noncurrent assets

2,325,588

2,295,721+29,867 Investment securities : -8,262

2,660,275

2,621,028+39,247

359,066

380,618-21,552

Current liabilities

Liabilities

ChangeCurrent assets

Total assets

Net assets

FY2021Results+9,380Land and buildings for sale︓+14,148

Property and equipment and intangible assets : +35,379

Q3 FY2022
Results
DeptLong-term liabilities

1,382,097

1,330,424+51,673

Bonds
Commercial paper
Lease obligations

Total liabilities

Interest-bearing debt

799,103 824,622
237,000 197,000
40,00030,00013,115
11,425
1,089,219 1,063,048

1,741,164

1,711,042

Shareholders' equity

840,747

833,640+7,106 Payment dividend : -12,126

Accumulated othercomprehensive income

31,13033,511-2,380Non-controlling interests

47,234

42,834+4,400Total net assets

919,111

909,985+9,125

32.8%

33.1%

-0.3P

Equity ratio+30,121

FY2021Results

Change△25,519＋40,000＋10,000＋1,690＋26,171

Net income attributable to owners of the parent : +18,827

13

Ⅱ. Forecast for fiscal 2022
(Ending March 2022)14

Consolidated Statements of Income (Summary)（￥ billion）

FY2022
Forecasts

Impact of applying ASBJ 29+￥35.0 billion

Revenue from operations

①

750.0

FY2022
Forecasts(As of Oct)②

ChangeRemarks＝①－②

740.0 +10.0 (＋1.4%)

FY2021Results

Change

③

=①－③

568.9

+181.1

Many businesses haveexceeded their initial Q3
performance forecasts.

Operating income

36.0

30.0

+6.0 (＋20.0%)

2.1

+33.9

-7.6

+38.6

-36.7

+51.7

Ordinary income

31.0

25.0

This increase will accompany+6.0 (＋24.0%) the increase in operating
income.

Net income attributableto owners of the parent

15.0

12.0

+3.0 (＋25.0%) the increase in ordinary

139.7

139.7

―

108.5

+31.2

Depreciation and amortization

60.7

60.7

―

55.7

+5.0

Financial balance (1) - (2)

-7.5

-7.5

―

-7.8

+0.3

Interest and dividend income(1)

1.0

1.0

―

1.1

-0.1

Interest expense(2)

8.5

8.5

―

8.9

-0.4

This increase will accompany
income.

（Reference）
Capital Expenditures15

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

FY2022
Forecasts[Upper table]
Revenue from operations[Lower table]
Operating income

Total
Impact of applying ASBJ 29 +￥35.0 billion

FY2022
Forecasts(As of Oct)

FY2021Results
Change

①

②

=①-②

③

750.0

740.0

+10.0

568.9

+181.1

36.0

30.0

+6.0

2.1

+33.9

164.4

166.2

-1.8 Following the Covid surge in January this year,

156.9

+7.5

8.4

8.7

-5.1

+13.5

235.3

236.3

188.4

+46.9

31.9

30.5

+1.4 Income increase: Expenses decreased in Q3.

28.9

+3.0

62.5

62.4

the stage business will likely cancel some+0.1 Althoughshows in January, the sports business saw better-

42.2

+20.3

8.1

7.3

+0.8 the expenses have decreased in both businesses.

-2.3

+10.4

62.6

62.6

－

58.1

+4.5

6.0

6.0

－

5.6

+0.4

57.0

60.0

12.0

+45.0

-7.4

-2.8

Remarks

Change=①-③(Breakdown for each business segment)-￥4.0 billion

Urban Transportation

Real EstateEntertainment-￥3.0 billion

Information andCommunication Technology+￥46.0 billion

TravelInternational
Transportation
Hotels-0.3

ridership in the railway and automobile businesses are
expected to be less than the previous forecast.

decrease: The real estate sales business is-1.0 Revenue
expected to see a revenue decline after reschedulingsales of some properties.

than-expected revenue from the Climax Series, andRevenue decrease: Outlook for a demand recovery in-3.0 domestic tours have been downgraded.

Income increase: Higher orders are expected in nontravel businesses such as contracts for managing
accommodation for Covid patients.

-10.2

-11.0

+0.8

135.0

120.0

+15.0 Handling volume has surpassed expectations and

85.6

+49.4

7.0

5.0

+2.0

2.3

+4.7

26.9

26.3

+0.6 Accommodation operations are seeing higher

19.1

+7.8

-13.8

numbers of patrons than previously forecast.

-17.9

+4.7

-13.2

+0.6

demand should continue to outstrip supply for thetime being.

16

COVID-19 Impact in Each Segment (assumptions for Fiscal 2022 forecasts)
Stated below are the assumptions underlying the full-year forecasts. These assumptions take into account Q3
performance.

Urban
Transportation

Real Estate【Railway】
Having factored in a ridership decline amid the current Covid surge, we assume that revenue from other(non-season) tickets as of March 2022 will be just 15-20% lower than the result for the same period in fiscal
2019.
The impact on worker commuter pass revenue will persist throughout the period (the revenue will be 1015% lower than the fiscal 2019 level).
The period-average for student commuter pass revenue will be around 20% lower than the fiscal 2019 level.
【Automobile】
For transit buses, the impact will be similar to that for railway.
For airport shuttle buses, the impact will depend on outlook for air travel (demand for international flights at
Kansai International Airport will not recover within the fiscal year).
【Real estate leasing】
Performance will recover significantly from the level of H1, when the state of emergency (store closures,
reduced hours) impacted the segment.

Entertainment【Stage】
Having factored in the cancelation of some shows, we assume that the theaters will make money provided
that they sell at full capacity (excluding frontmost seats).

TravelIn view of recent trends, we assume that full-year performance from domestic tours will be 70–80% lower
than the result for fiscal 2019.
Demand for international tours will not recover within the fiscal year.

HotelsAccommodation: We expect performance to steadily recover toward the end of the fiscal year. Inbounddemand is unlikely to recover in the period (for hotels managed directly by Hankyu Hanshin Hotels※,
domestic demand as of March 2022 will be around 40% less than it was in the same period in fiscal 2019).
Food/beverage: Performance will gradually recover toward the end of the fiscal year.
※ Excludes hotel locations opened in fiscal 2020 or later.

17

Outlook for Operating Income（FY2021→FY2022）••

For fiscal 2022, on the assumption that many businesses will see a reasonable
recovery from the effects of the pandemic, we expect to achieve ¥36.0 billion in
operating income, ¥33.9 billion higher than in fiscal 2021.
However, the actual year-on-year increase will be ¥44.2 billion when taking into
account the Covid-related extraordinary losses (including fixed expenses duringsuspensions of operations and costs associated with cancelling events). In FY2021,
the extraordinary losses totaled ¥19.4 billion. For fiscal 2022, we are expecting suchlosses to amount to ¥9.1 billion.

36.0

COVID-19related losses

26.9+33.9 billion-9.1+¥44.2 billion

2.1

COVID-19related losses-17.3
FY2021-19.4

FY2022
Urban Transportation +¥14.2 billion,
Real Estate +¥4.1 billion,
Entertainment +¥13.6 billion,
International Transportation +¥4.7 billion,
Hotels +6.6 billion

18

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

FY2021Results

ChangePassenger volumes (Thousands)*
FY2022
Forecasts

FY2021Results

ChangeCommuter pass

28,72828,093+634 (＋2.3%)

283,259

277,068+6,190 (＋2.2%)

Workers

25,25525,625-369 (-1.4%)

205,095

216,044 -10,948 (-5.1%)

Students

3,473

2,468

+1,004 (＋40.7%)

78,16461,024 +17,139 (＋28.1%)

Other tickets

46,50940,982+5,527 (＋13.5%)

232,902

208,035 +24,866 (＋12.0%)

Total75,237

69,075+6,161 (＋8.9%)

516,161

485,104 +31,057 (＋6.4%)

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

FY2021Results

ChangePassenger volumes (Thousands)*
FY2022
Forecasts

FY2021Results

ChangeCommuter pass

10,648

10,476+171 (＋1.6%)

110,188

107,336+2,851 (＋2.7%)

Workers

9,657

9,750

-92 (-0.9%)

88,92490,809-1,885 (-2.1%)

Students

990

726+264 (＋36.4%)

21,263

16,526+4,737 (＋28.7%)

Other tickets

15,744

13,725+2,018 (＋14.7%)

86,22876,214 +10,014 (＋13.1%)

Total

26,39324,202+2,190 (＋9.1%)

196,416

183,550 +12,866 (＋7.0%)＊ 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).

19

Management Indicators / Returns to Shareholders■Management Indicators
FY2021Results

FY2022
Forecasts(As of Oct)

FY2022
Forecasts(As of Jan.)Operating income¥2.1billion¥30.0billion¥36.0billion

EBITDA※1¥60.3billion¥93.0billion¥99.0billion¥1,063.0billion¥1,150.0billion¥1,110.0billion

Interest-bearing debt /EBITDA ratio

17.6times

12.4times

11.2times

D/E ratio※2

1.2times

1.3times

1.3times\ -36.7billion¥12.0billion¥15.0billion- 4.1%

1.4%

1.7%¥1,035.5billion¥1,125.0billion¥1,085.0billion

17.2times

12.1times

11.0times

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

20[Reference] Consolidated Statements of Income (Breakdown by type of business)
Revenue from operations(¥ billion)

Operating income

FY2022
Forecasts

FY2022
Forecasts(As of Oct)

ChangeFY2021Results

ChangeFY2022
Forecasts

FY2022
Forecasts(As of Oct)

ChangeFY2021Results

Change

①

②

=①-②

③

=①-③

①

②

=①-②

③

=①-③

164.4

166.2

-1.8

156.9

+7.5

8.4

8.7

-0.3

-5.1

+13.5

120.2

121.5

-1.3

112.3

+7.9

16.8

17.3

-0.5

7.9

+8.9

Automobile

34.8

35.2

-0.4

32.7

+2.1

-3.8

-3.8

－

-6.8

+3.0

Retailing

11.3

11.5

-0.2

14.0

-2.7

0.8

0.8

－

0.8

+0.0

Others

8.4

8.3

+0.1

8.8

-0.4

0.7

0.6

+0.1

0.7

-0.0

235.3

236.3

-1.0

188.4

+46.9

31.9

30.5

+1.4

28.9

+3.0

Real estate leasing

112.8

112.8

－

99.7

+13.1

29.0

28.3

+0.7

29.2

-0.2

Real estate sales andothers

139.9

140.9

-1.0

105.7

+34.2

11.4

10.5

+0.9

8.3

+3.1

62.5

62.4

+0.1

42.2

+20.3

8.1

7.3

+0.8

-2.3

+10.4

Sports

29.1

28.7

+0.4

21.1

+8.0

2.9

2.1

+0.8

-2.5

+5.4

Stage

33.4

33.7

-0.3

21.0

+12.4

6.5

6.5

－

1.7

+4.8

Urban Transportation[Breakdown]

Railway

Real Estate[Breakdown]Entertainment[Breakdown]

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

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

Transaction

Current practice

New practice

Impact on revenue, income forfiscal 2022

①

Urban
Transportation

Commuterpass

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

TravelOrganized
tours※

Report revenue on
net basis

Report revenue ongross basis

Revenue approx.+¥46.0 billion
No impact on income

②

Urban
Transportation

Sales andpurchase inretailingbusiness

Report revenue ongross basis

Report revenue on
net basis

Revenue approx.-¥4.0 billion
No impact on income

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

22