Hankyu Hanshin Holdings Group
Results Briefing Materials for
Financial Results for the First Halfof Fiscal 2023 (Ended March 2023)
Reference Data

(1) Long-Term Vision,
Medium-Term Management Plan･･･

2

(Reproduced from Results Briefing Materials for
Financial Results for Fiscal 2022 (Ended March
2022) and Materials for Long-Term Vision
released in May 2022※)※ With some information updated(2) Progress in Each Project･･･ 21(3) Sustainable Management･･･ 34(4) Other･･･ 42* See our integrated report for more on our sustainability initiatives:
https://www.hankyu-hanshin.co.jp/ir/library/integratedreports/1(1) Long-Term Vision,
Medium-Term Management Plan

(Reproduced from Results Briefing Materials for Financial
Results for Fiscal 2022 (Ended March 2022) and Materials
for Long-Term Vision released in May 2022※)※ With some information updated(2) Progress in Each Project(3) Sustainable Management(4) Other2

Strategic Management
Customers
Communities

Partners

Employees

Contribute toa sustainable society

Next generation

Creditors

Shareholders

Sustainably enhance
corporate value

Long-Term Vision
Medium-Term Management plan

Sustainability Declaration

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

The base underpinning our efforts to achievesustainable corporate development
General principles－ Create a future grounded in "Safety and Comfort",
and a future colored by “Dreams and Excitement”. －Our value to societyGroup Management Philosophy

MissionBy delivering “Safety and Comfort” and “Dreams and Excitement”,
we create satisfaction among our customers and contribute tosociety.
3

Changing business climate: Rapid societal
changes Driven by COVID

Long-Term
VisionCOVID 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 and online)

More online shopping
More demand for real experiences
Further momentum in SDGs, 2050
carbon neutrality goal
Further efforts to extend qualityadjusted life expectancy4Changing Business Climate: Medium- to Long-Term Market Changes 1
Negative factor

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 and communications,
we can increase thecompetitiveness of the Umeda andother line-side areas and thus
draw in more visitors when
demand does return.

Construction costs

Recovery in
inbound demand

Vision

Demographics ofJapanReal estate market
in Tokyometropolitan area

Long-Term



5

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

Long-Term
VisionPositive factor, action

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 withtravel motives (1).

Shift to nextgeneration mobility
MaaS(1) The motives for traveling somewhere(work, shopping, activity)

 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 the services
and content of our Group companies
and external partners, we can create
impetuses for travel, which will be
one way to generate travel demandas the population shrinks.

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.
6

Impact of Changes on Group

Long-Term
VisionThe 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.

Urban
Transportation
Real Estate

Hotels

Negative factor

Positive factor, action

Less ridership revenue

Revenue loss is limited among our rail
networks

Less demand for office space, lessrevenue from urban commercial
properties

Demand remains strong among Osaka-Umeda
prime urban real estate (office and commercial)

Less demand for travel and parties

We have rediscovered demand for face-toface service•

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.

7

Thinking Behind Updated Vision

Long-Term
VisionTo 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
8Where we Want to be in the Long Term

Long-Term
VisionThe 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 line-side communities 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.

9Long-Term Vision: General Image

Long-Term
VisionValue Creation Process
Value
accumulates

Leverage external partners
Strategies to achieve vision

Services (value) we provide

Better customer
satisfaction

Tangible, intangible corporate resources

Safe,
comfortableurban life

Make our line-side communities theabsolute best among the Kansai networks.
Strategy 3

Expand the coverage of our line-sidebusiness model
Strategy 2

Inspiringexperiences

Make our content as compelling as possibleUse(including
digitalassets)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%

10

Long-Term Growth Vision for 2035-2040

Long-Term
Vision 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
11

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

Strategy 1

VisionBeyond our line-side areas (Tokyo, overseas)

Strategy 3(core strategy)

Make our line-side communities 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)Long-Term

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 content
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)

12

Hankyu Hanshin DX ProjectLong-Term
Vision■ 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 content
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.

13

Contribute to SDGs, 2050 Carbon Neutrality Goal

Long-Term
Vision<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%

14

Financial PolicyLong-Term
Vision

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

Maintainfinancialhealth• To achieve a stable baseline profit, we will maximize top- andbottom-line growth in our businesses by tightly controlling
expenditures and by integrating digital tech in a way that expands
revenue opportunities and increases productivity.
• We will also tighten risk management in volatile businesses (e.g.
overseas real estate businesses)

Maintain financial health• While we continue to invest capital in large projects and activities togrow our businesses, 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

Keep capitalcosts inmind

(create returns that exceed capital costs)• Our businesses will keep capital costs in mind, committing tomaintain or improve their returns with ROIC (= operating income /invested capital) as one of the benchmarks.
• To avoid bloated balance sheets, we will be more circumspect about
increasing our stocks (carefully vetting prospective investments withan eye on return), overhaul business approaches, and offload
underperforming assets.
• 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 theright.

ROE
7％ rangeover medium tolong term

15

Medium-Term
Medium-Term Management Plan:
Management
plan
Time Period Covered, Earnings Targets■ Time period covered• The new medium-term plan outlines actions we will take over the relevant time period inorder to achieve our updated Long-Term Vision. These actions are designed to contributeto the business and financial strategies of the vision.
• The plan covers four years: FY2023 to FY2026. In setting this period, we were mindfulof the targets set in our long-term vision for the milestone year of FY2031.

■ Earnings targets
1,200¥100.0 billion
level

1,000

Baseline profit level

800
Impact of COVID-19
Approx.-¥100 billion

600
400
200
0

2/3 of pre- COVID
level

Target

FY2031

Climb back to¥100.0 billion
level¥130.0 billion

with something
extra

FY2026¥115.0 billion

Results(FY)〜2019
Pre-COVID

2020

2021

2022

Phase 1

In Japan, short-distance travel resumes.
Travel distances gradually increase, andthe impact of physical distancing eases
off.

2023

2024

Phase 2

Travel gradually
resumes
acrossthe world.

2025

2026

2031

Phase 3
COVID
impactabates.
Economic
activity returns mostly to normal in andoutside Japan. However, there is no full
return to pre-pandemic times.
16Key Actions to Achieve Medium-Term Targets

Medium-Term
Managementplan

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).

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.
17

Medium-Term
Management
plan

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)-560.018

Capital investment

Medium-Term
Management
plan

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 Project‧ 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 investments
19Performance Indicators (–FY2026)
FY2022
Results

FY2023
Forecasts(As of Oct.)

Medium-Term
Managementplan

FY2026
Targets

Operating income¥39.2billion¥70.0billion¥115.0billion

EBITDA※1¥100.7billion¥135.0billion¥190.0billion¥1,096.0billion ¥1,170.0billion¥1,180.0billion

Interest-bearing debt
Interest-bearing debt /EBITDA ratio

10.9times

8.7times

6.2times

D/E ratio※2

1.3times

1.3times

1.1times¥21.4billion¥40.0billion¥75.0billion

2.5%

4.5%

7％ range¥1,064.6billion ¥1,145.0billion¥1,155.0billion

Net income attributable toowners of the parent
ROE(Reference)
Net interest-bearing debt※3
Net interest-bearing
debt/EBITDA ratio

10.6times

8.5times

6.1times※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(1) Long-Term Vision,
Medium-Term Management Plan

(Reproduced from Results Briefing Materials for Financial
Results for Fiscal 2022 (Ended March 2022) and Materials
for Long-Term Vision released in May 2022※)※ With some information updated(2) Progress in Each Project(3) Sustainable Management(4) Other21

List of Key Projects
（FY）

Umeda

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

2022

2023

2024

2025

●Close Hotel new Hankyu Osaka（Around the end of FY2025）●Completion of construction(Apr 2021)

LOGiSTA, Logicross Ibaraki Saito●Completion of construction(May 2021)●Completion of construction(Feb 2022)

Line-side Area

Development on west side ofHankyu Nishinomiya Gardens
Kita-Osaka Kyuko Railway Line
Extension Project●Completion of construction(Aug 2023)●Intended start of service(The end of FY2024)●Completion of construction of northern wing(FY2025)

Project to Redevelop Site of Takarazuka Hotel●Completion of construction of southern wing(FY2026)●Completion of construction(FY2027)

Project to Redevelop Site of Yodogawa Ward Office
Schedule tobe determined
Schedule tobe determined

Senri-Chuo Redevelopment●Close Senri Hankyu Hotel（Around the end of FY2026）

Naniwasuji Connection Line/
Shin-Osaka Connection Line

Tokyo Metropolitan Area

H-CUBE MINAMIAOYAMA (Completed in FY2021）●Sell-offHankyu Hanshin Ueno Okachimachi Buidling●Completion of construction(Jan 2022)

Yaesu 2 Naka Redevelopment
Schedule tobe determined

・・・●Full openings (FY2028)

Kobe Sannomiya Hankyu Building

KOSHIEN PLUS

2031

●Advance openings (Around summer 2024)

Shibata 1 Project

be determined

・・・●Completion of construction(Feb 2022)

Umekita Phase Ⅱ Development Project
Schedule to2026●Completion of construction(FY2029)

Project to Redevelop Site ofHotel Grand Palace

22

Umeda 1-1 Project (Osaka Umeda Twin Towers South)• Begun in October 2014, this large project symbolizes the merger between Hankyu and Hanshin
in 2006. The construction was completed in February 2022. The office area entered service inMarch. The Hanshin Umeda Main Store fully opened in April.
• With Umeda Hankyu Building being renamed Osaka Umeda Twin Towers North on April 1, thetwo buildings were reborn as Osaka Umeda Twin Towers. The buildings will serve as a symbol of
Umeda.
【Project summary】【Building exterior】 Osaka Umeda Twin Towers South
Location

1-1 Umeda, Kita-ku, Osaka

Site area

Approx. 12,200 ㎡*1

Total floor space

Approx. 260,000 ㎡

Scale

38 floors above ground and 3 below groundPurpose

Department store, offices, halls, etc.

*1 Including the road between Dai Hanshin Building and Shin
Hankyu Building【Schedule】

DBJ Green Building
Certification 5 stars(highest rating)

October 2014
July 2015

Phase I start demolition work
Phase I construction begins
Completion of phase I construction (Shin Hankyu Building
April 2018and Dai Hanshin Building East Wing)
Partial opening of new department store
June 2018
Phase Ⅱ (west wing of Dai Hanshin Building):
Start demolition work
June 2019
Phase Ⅱ construction begins
Completion of phase Ⅱ construction, the department store
September 2021
part
Opening of the new department store in the phase Ⅱ
October 2021
department store part*2
February 2022
Completion of all construction
March 2022
Opening of office Floors
April 2022
Full opening of the department store*2 Some construction work continued ahead of the full opening

23

Umekita Phase Ⅱ Development Project・A consortium Hankyu Corporation joined (JV9) and one that Hankyu Hanshin Properties Corporation joined (a sixcompany consortium of design consultants and project management providers) submitted bids for the Umekita Phase
Ⅱ Development Project in a public tendering process organized by the Urban Renaissance Agency (a semipublic
Independent Administrative Institution). The consortiums won the bidding.
・The core theme of the project is to integrate green space with innovation. Building on the first phase of the project(which culminated in the opening of Grand Front Osaka), the consortium is working to achieve this theme and set a
new standard in urban design for Kansai and even the whole of Asia.

【Outline of plan】
Urban open space specifications

Private-sector zone specifications*1
North zone
Site area

South zone

Approx. 15,720㎡

Approx. 30,430㎡

Total floor space Approx. 136,800㎡

Approx. 407,250㎡

Innovation facilities, hotel(operator:Hilton),commercial facilities,
residence, others

Facilities

Site area

Offices, hotel (operator: Hilton,
Hankyu Hanshin Hotels),commercial facilities, MICE
facilities, residence, others*1 Expected as of May 19, 2022

Approx. 45,000㎡*2

Total park
facility Approx. 11,000㎡*2
space
Museum, experiential learning
Facilities facilities, roofed open spaces,
restaurants, shops, others*2 Expected as of May 16, 2022

How the area as a whole will look once completed【Schedule】
Dec. 2020

Construction in
private-sector zones

Aroundsummer2024

Advance openings*3

FY2028Full openings*3 For some private-sector zone facilities
and part of the urban open space

Target areafor phaseⅡ
approx.9.1ha
Green
space
Approx.
4.5ha

North
zone
GRAND
FRONT
North Park OSAKA（approx.7ha）

South ParkWest Gate
Plaza.

Southzone
JR Osaka station(Undergroundstation)(based on the image released in December 2020; subject to change) 24

Umekita Phase Ⅱ Development Project■ Hankyu Hanshin Hotels plans to open a new upscale hotel.*• Hankyu Hanshin Hotels will open an upscale hotel in the east leasing block (floors 5–28) in the
Umekita Phase Ⅱ South District Zone.
*An upscale hotel means a hotel that is a grade above that of a normal business hotel.

• The hotel will offer excellent convenience by being situated very close to JR’s new underground
Osaka Station, which offers direct access to Kansai International Airport.

Location of hotel
Source: Webpage for Umekita Phase
Ⅱ Development Project

South
District
Zone

New hotel(upscale hotel)
West leasing block

Urban open
space

North
District
Zone

Block
for sale

Blockfor rent
OfficeShin Umeda City

Commercial

Blockfor sale

Residential
HotelGrand Front Osaka

Core[Plan]
Total floor space Approx. 21,740㎡

Umekita
Plaza

East leasing
block

JR
Osaka
stationJR
OsakastationNumber ofrooms

482 rooms

Facilities

Restaurants, bars, Lounge,
fitness center etc.

Scheduled
opening

Second half of FY2025
25

Kita-Osaka Kyuko Railway Line Extension Project【Development plan summary】
MinohKayano Sta.

Approx.
1.3km

Act on Rail Tracks

National Route171

National Route 423（Shin-midosuji）

Railway Business Act

Approx.
1.2km

from Senri-Chuo Sta. to Minoh-Kayano Sta. 2.5km
Minoh-Semba Handaimae Sta., Minoh-Kayano Sta.
¥87.4 billion yen
45,000 people per day【Business scheme】
Developer
Operator
Funding program
Portion to beborne by KitaOsaka Kyuko
Railway Co., Ltd

MinohSemba
Handaimae
Sta.

Railway
Business Act

SenriChuo
Sta.

Extension
distance
New stations
Estimated projectcost
DemandKita-Osaka Kyuko Railway Co., Ltd. and Minoh City
(development of infrastructural components between
Minoh-Semba Handaimae Sta. and Minoh-Kayano Sta.)
Kita-Osaka Kyuko Railway Co., Ltd.
Social capital development grant¥11.0 billion yen; Amount commensurate with profits【Schedule】
December, 2016

Obtained a license for railway business and acharter for railway track operations
Commencement of construction

The end of FY2024

Intended start of service

December, 2015

SenriChuo
Sta.

Approx. 1.2km

Underground section

MinohSemba
Handaiｍae
Sta.

Approx. 1.3km

MinohKayano Sta.

National Route 423 Elevated section(Shin-midosuji）

National
Route 17126

Project Progress Along Other Line-side Areas①
In order of
opening date

Kobe Sannomiya Hankyu
Building

DBJ Green Building
Certification
3 stars

Location
Site area

PurposeScheduled
opening

A zoneB zone2-1, 4-chome Kanocho, Chuo-ku, Kobe

1-chome, Saito Moegi, Ibaraki, Osaka

Approx. 7,100㎡

A zone︓Approx. 51,000㎡(*) B zone︓Approx. 16,000㎡(*)（Direct access to Hankyu Kobe-sannomiya
Station）

Total floor space Approx. 34,300㎡
Number offloorsLOGiSTA, Logicross Ibaraki Saito(In the Sanroku Line area of the eastern section of Ibaraki City’s
International Culture Park ‘Saito’)A zone︓Approx. 116,000㎡(*) B zone︓Approx. 31,000㎡(*)

Building’s main section︓29 floors
A zone︓5 floors above groundabove ground and 3 below groundB zone︓4 floors above ground
Section under elevated railway︓2 floors
above ground and 1 floor below ground
Hotel “remm plus Kobe Sannomiya”, offices,
commercial facilities ”EKIZO Kobe Sannomiya”, Logistics facilities
railway station

April 26, 2021

May 31, 2021(completion date)* Includes the portion belonging to our partner

27

Project Progress Along Other Line-side Areas②
KOSHIEN PLUS

In order of
opening date

Development on west side of Hankyu
Nishinomiya Gardens

HanshinKoshien Stadium
KOSHIEN PLUS

8-15 Koshien-cho, Nishinomiya, Hyogo

544 Takamatsu-cho, Nishinomiya, Hyogo(South side of Hanshin Koshien Stadium)（Direct access to Hankyu Nishinomiya-kitaguchi Station）

Site area

Approx. 3,200㎡

Approx. 3,000㎡

Total floor
space

Approx. 5,000㎡

Approx. 18,300㎡

Number offloors3 floors above ground

14 floors above groundPurposeThe Museum Of Hanshin Koshien Stadium,commercial facilities

Commercial facilities, offices, rental housing

Scheduled
opening

March 3, 2022

September 2023 (scheduled)

Location28

Project Progress Along Other Line-side Areas③
In order of
opening date

Redevelopment of Site of
Takarazuka Hotel

Development of Site of
Yodogawa-ku Ward Office65-1, Umenocho, Takarazuka, Hyogo

1-21-3, Juso-higashi, Yodogawa-ku, Osaka

Site area

Approx. 9,800㎡

Approx. 7,300㎡

Total floor
space

North wing: Approx. 41,000㎡
South wing: Approx. 37,800㎡

Approx. 84,400㎡

Number offloorsNorth wing: 32 floors above ground（Total condominium units: 316 units）
South wing︓32 floors above ground(Total condominium units: 322 units)

39 floors above ground(Total condominium units: 712 units)

PurposeResidences, supermarket, clinic, preschool facility, Residences, supermarket, preschool facility, public
etc.
library, etc.

Scheduled
opening

North wing: Sales to begin in FY2025
South wing: Sales to begin in FY2026

Location(near Hankyu Takarazuka-minamiguchi Station)(near Hankyu Juso Station)

Sales to begin in FY2027
29

Real Estate Development in Tokyo Metropolitan area
H-CUBE MINAMIAOYAMA(Dec 2021: Sold)

Hankyu Hanshin Ueno
Okachimachi Building

Projects in Tokyo
H-CUBE MINAMIAOYAMA Ⅱ(Dec 2021: Construction
completed)(Jan 2022: Construction
completed)

Project to Effectively Use Site ofHotel Grand Palace(Sep 2021: Concluded basic agreement with
relevant parties over effective use of site)

H-CUBE KITAAOYAMA(Feb 2021: Construction
completed)
H-CUBE JINGUMAE(July 2016: Construction
completed)Yaesu 2 Naka redevelopment(FY2029: Construction to becompleted)

PILOT
Hankyu Hanshin
Green Building(Feb 2019: Construction
completed)[Legend]*Includes both properties that are sold orscheduled for sale

Hankyu Hanshin
Ginza Building(Mar 2020: Construction
completed)*H-Cube: A series of low-rise, street-facing commercial facilities being developed in the
Greater Tokyo Area

●Rental properties (office,commercial facilities, logistics facilities)●Condominiums for sale
●Condominiums for rent,
student accommodation
30

Project Progress in Tokyo Metropolitan Areas
In order of
opening date

Location
Site area

Hankyu Hanshin
Ueno Okachimachi Building

Yaesu 2 Naka Redevelopment

4-9-2, Taito, Taito-ku, Tokyo

2-(from 4 to7), Yaesu, Chuo-ku, Tokyo(near Tokyo Metro Naka-okachimachi Station and JR
Okachimachi Station）(near JR Tokyo Station and Tokyo Metro Kyobashi Station)

Approx. 240㎡

Approx. 19,600㎡*

Total floor space Approx. 2,200㎡

Approx. 388,700㎡*

Number of floors 12 floors above ground

43 floors above ground and 3 floors below
groundPurpose

Offices

Offices, shops, theater, serviced apartment,international school, bus terminal, car park etc.

Scheduled
opening

January 31, 2022（Completion date）

FY2029（Scheduled）*Includes the portion belonging to our partner

31

Real Estate Sales Business in Japan
Geo was awarded the
top spot in Kinki in the2022 Oricon Customer
Satisfaction SurveyⓇ in
the new condominiums
category.

Condominiums sales in Japan (for general public)
 We will maintain or increase our market share in both
Kinki and Tokyo. In Kinki, we will focus on flagshipproperties. In Tokyo, we will focus on
redevelopment/remodelling projects with a medium- tolong-term timespan.
 We will also enhance the Geo brand, making it theabsolute best in Kinki.

Geo is our brandof condominiums
for sales

Geo was awarded
the top prize forcustomer satisfaction
in condominium
developer / sales
company category.

[Properties to be sold in future]・Geo Saito Irodori-no-oka（Minoh, Osaka) 372 units (handover from FY2024)
・Geo Tower Shimmachi（Nishi-ku, Osaka）190 units (handover from FY2025)
・Type 1 redevelopment project for vicinity of Hirai-5-chome Station（Edogawa-ku,
Tokyo）379 units* (handover from FY2025)
・Project to Redevelop Site of Takarazuka Hotel（Takarazuka, Hyogo）
638 units (handover from FY2025)
・Project to Redevelop Site of Yodogawa Ward Office (Yodogawa-ku, Osaka）
712 units (handover from FY2027)*Includes the units belonging to our partner[(Reference) Condominium sales in Japan]
（FY）

Units

2014
1,356

2015
1,374

2016
1,302

2017
1,087

［Geo Tower Shimmachi］
2018
1,159

2019
1,114

2020
1,516

2021
867

2022

2023

Approx.
1,137 1,200 units

Short-term-revenue (fix-and-flip) properties business (selling to investors)
 We will develop condominiums for real estate investingand develop properties for use as student accommodation
with a view to selling around 10 blocks a year in Tokyo.

Our Geo Ent is our brand of
condominiums for rent

32

Expanding the Real Estate Business Overseas· In ASEAN countries, we have focused on residential real estate sales business. We will now additionally focus on realestate leasing and short-term-revenue (fix-and-flip) development in order to increase the segment’s top-line growth
opportunities in overseas real estate markets.
Thailand: Condominiums, houses,
townhouses*
Actions in ASEAN

Cumulative units Approx. 47,020(as of Sep 30, 2022, includes units held bypartners)

Projects

Thailand
VietnamPhilippines
Indonesia
Malaysia

30
6
5
3
1

Total units

Philippines: Houses, townhouses*
Vietnam: Condominiums, houses,
townhouses*, logistics facilities

Approx.24,820
Approx.13,990
Approx.4,340
Approx.3,020
Approx.850

Malaysia: Condominiums
Singapore: Logistics facilities
Indonesia: Real estate leasing,houses, condominiums, logistics
facilities

・Central Park Mall

Actions in USA
Seattle, WA: Rental housing

Phoenix, AZ: Rental housing

and more*Terraced housing

33

(1) Long-Term Vision,
Medium-Term Management Plan

(Reproduced from Results Briefing Materials for Financial
Results for Fiscal 2022 (Ended March 2022) and Materials
for Long-Term Vision released in May 2022※)※ With some information updated(2) Progress in Each Project(3) Sustainable Management(4) Other34

[Reference] Sustainability Declaration
General principles (sustainability vision)

A future vision that we hope to achieve through our sustainablebusiness practices〜 Create a future grounded in "Safety and Comfort",
and a future colored by "Dreams and Excitement". 〜
For over a hundred years, we have sought to cultivate communities and enrich lives.
Leveraging this experience, we commit ourselves to addressing social and environmental
challenges and working toward a sustainable future, one that offers a fulfilling, joyful life to all
and inspires the next generation to dream with hope.
Priority issues (materiality matrix)

IssuesSafe, reliable infrastructure
Thriving communities

Six priority issues to address as part of our sustainable business practices

Policies
Provide railways and other infrastructure that are safeand disaster-resilient. Ensure that anyone can safely
access our facilities and services.
Help build sustainable communities with rich natural andcultural heritage, making great places to live in, work in,and visit.

Life designs for tomorrow

Promote refined and inspired lifestyle solutions for abetter tomorrow.

Empowering individuals

Provide an inclusive workplace that values diversity andtaps into individual talent. Cultivate tomorrow’s leaders
for society.

Environmental protection

Conduct eco activities that contribute to a carbon-neutral
world and a circular economy.

Robust governance

Act honestly and in good faith, as stakeholders expect us
to do.
35

Non-Financial KPIs (targets and results)
These KPIs apply to the six major companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu
Travel International, Hankyu Hanshin Express, and Hankyu Hanshin Hotels.

Targets
Priority issues

Non-financial KPIs

Safe, reliableinfrastructure*Applies to Hankyu Corporation/Hanshin Electric Railway/Kita-Osaka Kyuko Railway/Nose Electric Railway

Zero culpable incidents in our railway business
Percentage of women in
management positions

Employee satisfaction

Always better than inprevious survey*A survey is conducted every two years
among the HHHD and the six major
companies

Empowering
individuals

Around 10％（FY2031）*HHHD and six major companies

Environmental
protection

Always more than 30%*HHHD and six major companies*HHHD and six major companies

Smoking prevalence

Paternity leave uptake

Percentage of specific healthguidance provision

More than 60％（FY2026）

Percentage of women among
new hiresLess than 15％（FY2026）

100％（FY2026）*Applies to HHHD/Hankyu
Corporation/Hanshin Electric
Railway/Hankyu Hanshin Properties*Applies to HHHD and Hankyu
Hanshin Properties

Rate of CO2 emissions cuts
-46％ compared to FY2014 （FY2031）

CO2 emissions: Net zero (FY2051)*Applies to: HHHD and subsidiariesʼ Japanese worksites*Applies to: HHHD and subsidiariesʼ Japanese worksites

Results
（％）

10.0
8.0

Percentage of women in management positions（％）／Percentage of women among new hires

50.0

44.0

45.3

47.8

44.5

6.0
4.0
2.0
0.0

4.0

（FY） 2018

4.5

4.5

40.0

4.7

36.8

30.0

5.1

20.0

Percentage of women in management positions
Percentage of women among new hires (right axis)

2019

2020

2021

2022

10.0
0.0

（t-CO2）800,000

600,000

CO2 emissions volumes

Energy consumption on crude oil-conversion basis(right axis)
600,000
542,707616,365434,932

400,000

200,000

0
（FY）

（kl）
800,000

CO2 emissions volumes

316,4912014

298,536 283,045

…

2019

2020

370,131 393,821

253,116 252,495

2021

2022

400,000

200,000

036

Current ESG Efforts

E: Environmental

Our actions to contribute to the carbon neutrality goal•

To contribute to the 2050 carbon neutrality goal, we have updated as follows
our strategy for our fifth priority issue: environmental protection.
Sustainability Declaration

Priority issue 5: Environmental protection

Contribute toward a low-carbon, circular economy.
Strategy

Conduct eco activities that contribute to a carbon-neutral world and a circular economy.

Strategies to help achieve carbon neutrality① Use energy efficiently

Roadmap to carbon neutrality
CO2 emissions volumes

To reduce the base level of energy we consume, we will invest
in energy-efficient technology while keeping an eye on financial
soundness and return on investment.

① Use energy
efficiently② Explore ideas to generate energy
Keeping an eye on technological advances, we will introduce
systems for generating and storing renewable energy if they
are financially viable.

② Generateenergy③ Purchase renewable energy (carbon credits)③ PurchaserenewableenergyIf the first two strategies prove insufficient to achieve the goal,
we will cover the shortfall with purchasing renewable energy(carbon credits).

2022

2030

2050

37

Current ESG Efforts
Make condominiums for sale (Geo)and condominiums for lease(Geo Ent) ZEHs
To strengthen its contribution to the carbon transitionand other SDG-related efforts, Hankyu Hanshin
Properties will work to get a designation of ZEH-M
Oriented*2 or higher in all its newly built for-sale andfor-lease condominium buildings due to be put onsale/leased in FY2025.*1

E: Environmental
Hanshin Tigers farm facilities(for the second baseball team)
Plan for zero-carbon baseball park listed on the
Decarbonization Leading Areas (First Round).
We have plans to introduce a carbon transition to an area in
Amagasaki, Hyogo, that includes Odaminami Park Baseball Field(where the Hanshin Tigers farm facilities are to be relocated)and neighboring amenities (Daimotsu Park, Daimotsu River
Greenspace, and Hanshin rail stations situated in Amagasaki).
The plan involves promoting rigorous energy efficiency, using
renewable energy, and building a self-sustaining system for
local energy production and consumption.
The plan, a joint project between Amagasaki and Hanshin
Electric Railway, was selected by the Ministry of theEnvironment for inclusion on its list of Decarbonization Leading
Areas (First Round).** The Ministry of the Environment selects for inclusion in this list
localities that demonstrate pioneering efforts to contribute to the 2050
carbon neutrality goal. Such efforts include net zero emissions fromenergy consumption in local homes, shops, and buildings.
Tigers baseball stadium

Geo Saito Irodori no Oka(Zone 1 is ZEH-M Oriented, zone 2 is ZEH-M Ready*3)*1 With some exceptions (such as properties held jointly with peers).
*2 This designation is applied to condominium buildings that have cut
primary energy consumption for the whole building (including any
common-use areas) by at least 20% from the 2016 standard forenergy-efficient primary energy consumption in air heating, air cooling,
ventilation, lighting, and water heating.
*3 This designation is applied to condominium buildings that have cut
primary energy consumption for the whole building (including any
common-use areas) by at least 50% from the 2016 standard forenergy-efficient primary energy consumption in air heating, air cooling,
ventilation, lighting, and water heating.

Odaminami Park
Baseball Field

Indoor practicefieldPlayer dormitory & clubhouse

Tigers baseball field

Daimotsu Station
Daimotsu River
Greenspace

Daimotsu Park

How the completed project will look38

Current ESG Efforts

S: Social

Actions to increase rail safety[Universal design]

All our railway subsidiaries are rolling out accessibility
improvements to ensure that all our passengers feelsafe, secure, and comfortable when using ourrailways.
Kasuga-nomichi and Nakatsu Stations of Hankyu line
had posed an ongoing challenge for incorporating
universal design. For Kasuga-nomichi Station, we will
finish remodeling by the end of FY2023. For Nakatsu
Station, we will install elevators. In this way, we will
make all stations accessible.
As of March 31, 2022

Percentage of stations
with universal design(stairway-free)

HankyuCorporation

HanshinElectric
Railway

98％

100％

Stairway-free: Percentage of stations (those that serve atleast 3,000 passengers a day on average) withelevators or ramps as alternatives to stairways.

[Natural disasters of extreme severity]

Hankyu Corporation and Hanshin Electric Railway aretaking hard (physical) measures to control risks offlooding and earthquakes.
They are also taking soft (non-physical) safetymeasures such as suspending services strategicallyand communicating risk information to passengers.

[Platform doors]

Hankyu Corporation and Hanshin Electric Railway
will install platform doors (movable or stationary) inall stations to improve platform safety. This projectwill be funded by a fare component for accessibility
improvements.
Stations with platform screen doors(platform doors)
Hankyu Corporation●Juso station
FY2019 end: Installed on Takarazuka Line 3, Kyoto
Lines 4 and 5●Kobe-sannomiya Station
FY2022 end: Installed on all platforms●Kasuga-nomichi Station
FY2023 end: To be installed
Hanshin Electric Railway●Kobe-Sannomiya Station
FY2022 end: Installed on all platforms●Osaka-Umeda Station
Oct 2021: Entered service new platform 1
By Jan-end 2023: To be installed on new platform 2
FY2024: To be installed on new platforms 3 and 4

39

Current ESG Efforts

S: Social

Employee wellbeing

Community engagement

Twenty of our Group companies were listed in the“Health and Productivity Management” Organizationsof 2022, Hankyu Corporation, Hanshin Electric
Railway, and Itec Hankyu Hanshin were included
among the 500 best (“white”) companies.
A non-financial KPI we use for employee wellbeing ispercentage of specific health guidance provision (% ofemployees receiving health guidance for a lifestyledisease) and smoking prevalence. We work on these
KPIs across the group, recognizing that healthy
employees (and healthy family members) are thecornerstone of a prosperous future.

In 2009, we launched the Hankyu
Hanshin Dreams and Communities of
the Future Project. As part of thisproject, we work on communityengagement projects with the public
sector (the national government andlocal governments in line-side areas)
and with companies and NGOs thatare leading the way in SDG efforts.
One project involves running Dreams
and Communities trains, which aretrains with SDG-themed livery.

Listings in Health and Productivity
Management Organization
Indicates expanding scope of employee wellbeing in the Group

Category

2020 2021 2022

Large enterprise
category

5810

SME category

6

7

10

11

15

20

Total

SDG-themed rail livery: The Dreams and Communities trains

40

Current ESG Efforts

G:
Governance

Robust governanceNotes: Regarding Corporate Governance Report, please visit our website.

[Actions to promote effective and transparent corporate governance]
FY2016FY2017FY2018FY2019FY2020

FY2021

●

●

●

●

●

●

Established
the Corporate
GovernanceCommittee

Startedevaluating theeffectiveness of
the Board of
Directors

Scrapped thecorporateadviser system

Resolved to
discontinue antitakeovermeasuresEstablishedcompensationcommittee

Revisedcompensation
structure

Changed corporate
structure to that ofa “company with
an audit &supervisory board”

FY2023●
Corporate
GovernanceCommittee
・Compensationcommittee
chaired byoutside director[Participating in the UN Global Compact][Anti-Corruption Policy]

The UN Global Compact calls on companies tocommit to ten principles related to human rights(protection of human rights), labor (e.g. eliminationof forced and compulsory labor), environment, andanti-corruption. We signed the compact in May 2021,
and commit to upholding the ten principles.

We have declared our commitment to combat
corruption (including bribery, unfair trade practices,
and insider trading) and have published a basic policy(in March 2022) on how we work against corruption
and how we respond if an incident arises.

41

(1) Long-Term Vision,
Medium-Term Management Plan

(Reproduced from Results Briefing Materials for Financial
Results for Fiscal 2022 (Ended March 2022) and Materials
for Long-Term Vision released in May 2022※)※ With some information updated(2) Progress in Each Project(3) Sustainable Management(4) Other42

Consolidated Subsidiaries(As of September 30, 2022)
Urban Transportation
Railway
Hankyu Corporation
operations
Hanshin Electric Railway
Nose Electric Railway
Kita-Osaka Kyuko Railway
Kobe Rapid Transit Railway
Hankyu Hanshin Electric System
Railway Operation Hankyu
Hankyu Railway Service
Automobile
Hankyu Bus
Hanshin Bus
Hankyu Kanko Bus
Hankyu Taxi
Hanshin Taxi
Osaka Hanshin Taxi
Hankyu Hanshin Motor Technology

Real Estate
Real estateleasing, sales
and others

Hankyu Driving School Hattori Ryokuchi

Retailing
Other

Haks Hanshin
Hankyu Commuterbus Management
Osaka Motor Technology (OMTEC)
Eki Retail Service Hankyu Hanshin
Hankyu Style Labels
Alna Sharyo
Hankyu Sekkei Consultant
Hanshin Station Net
Hanshin Sharyo Maintenance【Legend】
Name of segment
Name of
Name of consolidated subsidiarysub-segment (Only listed companies that aremanaged as segment)

HotelHankyu Hanshin Properties
Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin Estate Service
Osaka Diamond Chikagai
KyokutoAdvanced Development
Hankyu Hanshin Building Management
Hankyu Hanshin High Security Service
Hankyu Hanshin Clean Service
Hankyu Hanshin REIT AssetManagement
Hankyu Hanshin Real Estate
Investment Advisors
Hankyu Hanshin Housing Support
Hankyu Hanshin Properties Join
HANKYU HANSHIN LOGISTICS
INDONESIAHANKYU HANSHIN PROPERTIESSINGAPORE
Hankyu Hanshin Hotels
Hanshin Hotel Systems
Arima View Hotel
Amanohashidate Hotel
Kure Hankyu HotelEntertainment
SportsHanshin Electric Railway
Hanshin Tigers Baseball Club
Hanshin Contents Link Corporation
P & P Hamamatsu
Wellness Hanshin
Mt.Rokko Cable Car & Tourism
Stage
Hankyu Corporation
Takarazuka Creative Arts
Takarazuka Stage
Umeda Arts Theater

Information and Communication Technology
Information and Hanshin Electric Railway
Communication Itec Hankyu Hanshin
Technology
System Giken
YMIRLINK
RworksNihon Protec
Mimamorume
Himeji Cable Television
Bay Communications
BAN-BAN Networks
Hanshin Cable Engineering
TravelTravel agency Hankyu Travel International
Hankyu Hanshin Business Travel
Hankyu Travel Support
Hanshin Travel International
International Transportation
International
Hankyu Hanshin Express
transportation Hankyu Hanshin Logipartners
HANKYU HANSHIN EXPRESS(USA,DEUTSCHLAND,UK,NETHERLANDS,

BEIJING,SHANGHAI,GUANGZHOU,HK,TAIWAN,KOREA,Southeast Asia,
SINGAPORE,THAILAND,MALAYSIA,PHILIPPINES,INDONESIA,VIETNAM,
INDIA : 18 companies)
HANKYU HANSHIN INTERNATIONALLOGISTICS SHANGHAIHANKYU HANSHIN LOGISTICS
INDONESIA

43

Revenue from Operations and operating income as a FY2022
Management composition

Earnings structure(As of September 30, 2022)*1

Hankyu Hanshin Holdings

Urban
Transportation
Real Estate

HankyuCorporation*2

HanshinElectric
Railway*2

Hankyu Hanshin
Properties■The Urban Transportation and Real Estate businesses
generate stable cash flows and account for approximately
50% of revenue from operations.（In FY2019 results,
approximately 60% of revenue from operations and 80%
of operating income)Revenue from operations breakdown(FY2022)
Consolidated Total

HotelsEntertainment

HankyuCorporation

HanshinElectric
Railway

25.6billion

Operating
Income-13.2billion

Operating
Income Margin

Information andCommunication
Technology

TravelRevenue fromOperations¥746.2billion

Operating Income¥39.2billion

Operating Income Marginー

Hankyu Travel
International

Hankyu Hanshin
Express*1 On April 1, 2022, we consolidated the Hotels segment into theReal Estate segment. Accordingly, we now have five corecompanies and six core business segments.
*2 In the Umeda and line-side areas, Hankyu Corporation andHanshin Electric Railway will retain their real estate for leasing
and developing and work with Hankyu Hanshin Properties topromote community building efforts in connection with public
transport networks and local governments.

Revenue fromOperations
Operating
Income143.3billion

Revenue fromOperations
Operating
IncomeOperating
Income Margin

8.0billion

TravelRevenue fromOperations

60.4billion

Operating
Income-5.7billion

5.6billion
3.5%

Revenue fromOperations

230.5billion

Operating
Income33.0billion

Operating
Income Margin

ー

14.3%

Entertainment

Information andCommunication Technology

Revenue fromOperations

62.9billion
9.3billion

Revenue fromOperations

59.2billion

Operating
IncomeOperating
Income5.9billion

Operating
Income Margin

Operating
Income Margin

161.6billion

Real Estate

5.6%

Operating
Income Margin

5.3%

Urban Transportation

International
Transportation

Operating
Income Margin

International
Transportation

Revenue from Operations

14.8%

10.0%

44

Areas served by the Hankyu and Hanshin lines①
Definition of the areas served by the Hankyu and Hanshin lines
Osaka Prefecture:
Osaka City (Fukushima, Konohana, Nishi, Naniwa, Nishi-Yodogawa, Higashi-Yodogawa, Yodogawa,
Kita and Chuo, out of a total of 24 wards); and Toyonaka, Ikeda, Suita, Takatsuki, Ibaraki, Minoh,
Settsu cities and Shimamoto town
Hyogo Prefecture:
Kobe City (Higashi-Nada, Nada, Hyogo, Nagata and Chuo, out of a total of 9 wards); andAmagasaki, Nishinomiya, Ashiya, Itami, Takarazuka and Kawanishi cities
Kyoto Prefecture:
Kyoto City (Nakagyo, Shimogyo, Ukyo, Nishikyo, out of a total of 11 wards); and Muko andNagaokakyo cities and Oyamazaki town

45

Areas served by the Hankyu and Hanshin lines②
Population Trends
108106

Sources: Prepared by the Company based on data from “Local Economy Directory,” published by Toyo Keizai, Inc.,and “Basic Resident Register,” published by the Ministry of Internal Affairs and Communications. （as of January 1,2021）

Areas served by the Hankyu and Hanshin lines
Kansai
Osaka Pref.
Hyogo Pref.
Kyoto Pref.

(thousand)

Area

Population

1,318

5,635

Osaka Pref. (service areas)

449

2,718

Hyogo Pref. (service areas)

471

2,255

Kyoto Pref. (service areas)

398

661

Non-Hankyu/Hanshin Service Areas

26,033

14,387

Osaka Pref. (non-service areas)

1,456

5,839

Hyogo Pref. (non-service areas)

7,930

3,123

Kyoto Pref. (non-service areas)

4,214

1,793

Shiga Pref.

4,017

1,383

Nara Pref.

3,691

1,322

Wakayama Pref.

4,725

928

27,351

20,022

Areas served by the Hankyu/Hanshin line

104
102

（k㎡）

（1991=100）

100
98
96
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991

Total

Survey of prospective condominium purchasers regarding their preferred Kansai residential area
Ranking Station（Area）

1

Osaka-Umeda, Osaka(Osaka, Osaka Pref.）2

Nishinomiya-Kitaguchi（Nishinomiya, Hyogo Pref.）3

Shukugawa（Nishinomiya, Hyogo Pref.)4

Okamoto（Kobe, Hyogo Pref.）Ranking Station（Area）

11

Hommachi（Osaka, Osaka Pref.）12

Kobe-Sannomiya, （Kobe, Hyogo Pref.）Sannomiya

13

Tennoji（Osaka, Osaka Pref.）（Ashiya, Hyogo Pref.）（Osaka, Osaka Pref.）5

Takarazuka（Takarazuka, Hyogo Pref.）14

Ashiyagawa

6

Senri-Chuo（Toyonaka, Osaka Pref.）15

Yodoyabashi

7

Mikage(Hankyu)（Kobe, Hyogo Pref. ）16

Kitahama（Osaka, Osaka Pref.）8

Takatsuki, Takatsuki-shi（Takatsuki, Osaka Pref.）9

Ashiya（Ashiya, Hyogo Pref.）17

Toyonaka（Toyonaka, Osaka Pref.）10

Karasuma Oike

（Kyoto, Kyoto Pref.）

18

Kyoto

（Kyoto, Kyoto Pref.）19

Tanimachi 6chome（Osaka, Osaka Pref.）20

Fukushima（Osaka, Osaka Pref.）13 of the top20 spots are
areas served
by our lines

Source: A survey of prospective condominium purchasers regarding their preferred residential area, conducted by seven major real estate developers (Sumitomo Realty& Development Co., Ltd., Daikyo Incorporated, Tokyu Land Corporation, Tokyo Tatemono Co., Ltd., Nomura Real Estate Development Co., Ltd., Mitsui Fudosan
Residential Co., Ltd., and Mitsubishi Jisho Residence Co., Ltd.) and included in a press release dated October 6, 2022.

46

Overview of Osaka-Umeda area①
Major rental properties
Property nameLeasable area
(1,000㎡) *1（As of September 30, 2022)
Number of floors

Completed213

41 floors above ground and2 below groundNov 2012

194

38 floors above the groundand 3 below groundFeb 2022

Umeda Hanshin Daiichi
Bldg. (HERBIS OSAKA)

82

40 floors above ground and5 below groundMar 1997

Umeda Hanshin Daini Bldg.
(HERBIS ENT)

54

28 floors above ground and4 below groundNov 2004

Hankyu Chayamachi Bldg.
(Applause Tower)

52

34 floors above ground and3 below groundNov 1992

Osaka Umeda Twin
Towers North (Hankyu
Department Store, office)Osaka Umeda Twin
Towers South (Hanshin
Department Store, office）

Hankyu Sanban Gai
Shopping Center
Hankyu Grand Bldg.
Hankyu Terminal Bldg.
Hankyu Five Bldg.*2(HEP FIVE)
NAVIO Hankyu(HEP NAVIO)GRAND FRONT OSAKA*3
NU chayamachi

5 floors above ground and
38 2 below ground (partially 4
below ground)
32 floors above ground and36
3 below ground
18 floors above ground and27
4 below ground
10 floors above ground and19
3 below ground
10 floors above ground and16
2 below ground
38 floors above ground and14
3 below ground
9 floors above ground and12
2 below ground（As of September 30, 2022)

Nov 1969
Aug 1977
Mar 1972
Nov 1998
Oct 1980
Mar 2013
Oct 2005*1︓Leasable area is the portion owned by our group.
*2︓Jointly owned property with Hankyu Hanshin REIT Asset Management*3︓Jointly owned property with others (other than Hankyu Hanshin
REIT Asset Management)

Developments in Umeda district(red = Hankyu Hanshin Holdings group related Projects)① Umekita Phase Ⅱ Development Project② Umeda 3-chome Project (Provisional Name)- Japan Post Holdings Co. Ltd.,/Osaka Terminal Building Co., Ltd.
③ (Provisional Name) Commercial Development Northwest of Osaka Station - West Japan Railway Company etc.
④ Chayamachi B-2 District Redevelopment Project -TOKYU LAND CORPORATION Co., Ltd.

47

Overview of Osaka-Umeda area②
Trends in rent amongsix main business districts in Osaka

Trends in average vacancy rates amongsix main business districts in Osaka（%）（¥/3.3㎡）

12.00
10.00

18,00016,0008.00

14,0006.00
12,0004.00

10,000

2.00

8,000

0.00

Sep. 2017 Sep. 2018 Sep. 2019 Sep. 2020 Sep. 2021 Sep. 2022

Sep. 2017 Sep. 2018 Sep. 2019 Sep. 2020 Sep. 2021 Sep. 2022

Sep.

Sep.

Sep.

Sep.

Sep.

Sep.

Sep.

Sep.

Sep.

Sep.

Sep.

Sep.

2018
2.93

2019
2.00

2020
2.96

2021
4.33

2022
5.08

2017

2018

2019

2020

2021

2022

Osaka business areas (all)

2017
3.83

Umeda area

2.38

1.63

1.37

2.16

3.49

5.17

Minamimorimachi area

5.77

5.17

3.86

3.49

3.77

4.46

Yodoyabashi-Honmachi area

3.91

2.73

1.57

2.37

4.62

Semba area

6.11

4.52

3.04

4.69

Shinsaibashi-Namba area

3.39

4.75

2.78

Shinosaka area

4.38

3.59

2.60

Osaka business areas (all)11,187 11,398 11,670 11,944 11,818 11,874

Umeda area

14,487 14,863 15,297 15,900 15,808 15,809

4.09

Minamimorimachi area

9,249 9,357 9,396 9,362 9,314 9,443

5.12

4.74

Yodoyabashi-Honmachi area 10,994 11,149 11,356 11,595 11,348 11,407

3.70

4.17

2.73

Semba area

9,717 9,932 10,271 10,383 10,164 10,250

4.30

5.51

9.68

Shinsaibashi-Namba area

11,725 11,865 11,962 12,584 12,046 12,125

Shinosaka area

10,140 10,273 10,594 11,014 11,409 11,375(Reference)
Tokyo business areas (all)(Reference)
3.17

2.33

1.64

3.43

6.43

6.49

Tokyo business areas (all)18,99520,43821,85522,733

20,85820,156

Source: Miki Shoji, “Office Data.”

48

Hotel network of the Hankyu-Hanshin-Daiichi Hotel Group（As of September 30, 2022)

Directly managed hotels (Hankyu Hanshin Hotels) 18 Hotels 6,073 rooms
Other (franchises, etc.)

25 Hotels 5,673 rooms

43 Hotels
11,746 rooms*The number of hotels and guest rooms above does not include The Ritz-Carlton Osaka (291 rooms, Kita-ku, Osaka)

Directly managed hotels
Dai-ichi Hotel Tokyo
remm plus Ginza
remm Tokyo Kyobashi
remm Hibiya
remm Akihabara
remm Roppongi
Daiichi Hotel Tokyo Seafort
Hotel new Hankyu Kyoto
remm Shin-Osaka
Hotel Hankyu International
Hotel new Hankyu Osaka
Hotel new Hankyu Annex
Hotel Hankyu RESPIRE OSAKA
Hotel Hanshin Osaka
Hotel Hanshin Annex Osaka
Senri Hankyu Hotel
Takarazuka Hotelremm plus Kobe Sannomiya

Other(franchises, etc.)
Tokyo Dai-ichi Hotel Tsuruoka
Tokyo Dai-ichi Hotel Shin-Shirakawa

Ginza Creston
Hotel Yaenomidori Tokyo
Ours Inn Hankyu
Dai-ichi Hotel Ryogoku
Dai-ichi Inn Ikebukuro
Dai-ichi Inn Shonan
Dai-ichi Inn Shinminato
Tokyo Dai-ichi Hotel Nishiki
Hotel Boston Plaza Kusatsu

Kyoto,
Osaka,
Kobe

Hotel Royal Hill Fukuchiyama& Spa

Amano Hashidate Hotel
Osaka Dai-ichi Hotel
Arima Kirari HotelRoyal Park Hotel Kurashiki
Hotel Ichibata
Kure Hankyu Hotel
Takamatsu Kokusai Hotel
JR Hotel Clement Takamatsu
JR Hotel Clement TokushimaTokyo

The Crown Palais New Hankyu Kochi

Tokyo Dai-ichi Hotel Matsuyama

Imabari Kokusai Hotel
Remm Kagoshima

49