INTEGRATED REPORT 2021

Securities code: 9042

Group Management Philosophy

MissionWhat we try to achieve

By delivering Safety and Comfort andDreams and Excitement, we create satisfaction
among our customers and contribute to society.
ValuesWhat is important to us

Customers First

Sincerity

Everything we do is for the customer.
That s where it all starts.

Gain customers conﬁdence byalways being sincere.

Foresight & Creativity

Respect for People

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

Everyone is absolutely
invaluable to the Group.

Principles

How to act to uphold our values and fulﬁl our mission
1. We treasure encounters with people, and do our best in the position of a customer.
2. We abide by the laws and regulations, and act with a clear awareness of our social
responsibilities.
3. We take pride and responsibility in our work, and carry it out promptly.
4. We are not concerned with what is just before us, but think from medium- andlong-term perspectives.
5. We are not satisﬁed with present conditions, but ﬁx our eyes on the future and act.
6. We have caring feelings and respect each other.
7. We communicate in a lively way and create a workplace with a positive atmosphere.
8. We cooperate with one another for the prosperity of the Group.

1

Hankyu Hanshin Holdings Integrated Report 2021

Sustainability DeclarationRole of the Sustainability Declaration
Our Sustainability Declaration embodies part of our Group Management Philosophy andunderlies our pursuit of sustainable growth.
Customers
Employees

Communities

Contributing to asustainable society
Partners

Shareholders

Sustainably enhance
corporate value
Daily
life value

Socialvalue

Economic
value

Three core elements
underlie our pursuit

L onof sustainable growth:
1. General principles
2. Priority issues (materiality
matrix) and the policies
for each one
3. Project themes,
non-ﬁnancial KPIs

g-Term02
Management Vision for 2

The vision and strategy

5

for the Group ssustainable growth*We are currently updating ourLong-Term Management Vision for2025

Sustainability Declaration

Our value to societyGroup M
anagement Philosophy

General Principles

Create a future grounded in Safety and Comfort, anda 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.

Six priority issues (materiality matrix)

Safe, reliableinfrastructure

Thriving
communities

Life designs
for tomorrow

Empowering
individuals

Environmental
protection

RobustgovernanceFor details, see pages 31‒32.

Hankyu Hanshin Holdings Integrated Report 2021

2

Profile

Contents
01
1

Group Management Philosophy
Sustainability Declaration

3

Contents

5

Value Creation Trajectory

7

Business Overview

9Service Area

11

Financial Highlights / Non-Financial Highlights

Creating Real Value:
The Processes

04

Proﬁle31

Sustainable Management

33

TCFD

35

Special Feature

1

Strengthening urban functions and achieving attractive environment
for community building or internationally competitive towns
through cross-industry cooperation and co-creation

Chapter2Creating peace of mind and excitement in daily life throughfuture technology and innovation

Chapter

3

02

Message fromthe Top Management

42

Sustainability Declaration-Related Eﬀorts

Providing infrastructure that is safe and disaster-resilient andensure that anyone can safely access our facilities and services

ChapterBusiness Strategy
42

Urban Transportation

45

Real Estate

13

Message from the Chairman

48

Entertainment

15

Message from the President

51

Information and Communication Technology

53

Travel55

International Transportation

57

Hotels05
03
19

Value Creation Process21

Adapting to the New Normal
Pick Up

23

Special Feature

G

Priority Issue 6

69

S

Priority Issue 4

Empowering individuals

72

E

Priority Issue 5

Environmental protection

59
67

Creating Real Value:
Our Story

Data Analysis Lab

06

Operational Area Growth̶Past,
Present, and Future

Creating Real Value:
The Foundations
Robust governanceDirectors and Audit &Supervisory Committee Members

Financial Section andCorporate Data

75

Consolidated Eleven-Year Summary

77

Business Risks

79

Consolidated Balance Sheets

81

Consolidated Statements of Income /Consolidated Statements of Comprehensive Income

82

Consolidated Statements of Changes in Net Assets

84

Consolidated Statements of Cash Flows85

Notes to the Consolidated Financial Statements

112

Others113

Major Group Companies

114

Company Overview and Investor Information

Editorial Policy
This integrated report, in addition to a review of ﬁscal 2021, also describes the management
policies and ESG-related initiatives of Hankyu Hanshin Holdings, Inc. It is intended to aid all those
who read it, beginning with our shareholders and investors, in gaining a deep understanding of ourCompany.

Deﬁnition of the areas served by the Hankyu and Hanshin lines:
Below are lists of areas with Hankyu Corporation and Hanshin Electric Railway stations(including tier 2 railway operators).
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, andSettsu cities and Shimamoto town
Hyogo Prefecture: Kobe City (Higashi-Nada, Nada, Hyogo, Nagata, and Chuo, out of a
total of 9 wards); and Amagasaki, Nishinomiya, Ashiya, Itami,
Takarazuka and Kawanishi cities
Kyoto Prefecture: Kyoto City (Nakagyo, Shimogyo, Ukyo, and Nishikyo, out of a totalof 11 wards); and Muko and Nagaokakyo cities and Oyamazaki
town

3

Hankyu Hanshin Holdings Integrated Report 2021

Period under Review

This integrated report is based on the ﬁscal year 2021 (April
2020‒March 2021), however it also includes information pertaining
to activities before and after this period.

Forward-Looking Statements

The reader is advised that this integrated report contains
forward-looking statements regarding the future plans, strategies,
and earnings performance of Hankyu Hanshin Holdings, Inc., which
are not statements of historical fact but constitute estimates or
projections based on facts known to the Companyʼs management
as of August 2021. Actual results may be inﬂuenced by various
business risks and uncertainties, and diﬀer substantially from suchstatements.

About the Compilation of this Integrated Report and the
Auditing Company Used
The ﬁnancial section of this integrated report includes a digest of
information including consolidated ﬁnancial statements in the Companyʼs
Securities Report for the 183rd period, audited by KPMG AZSA LLC andpresented in a somewhat modiﬁed format. We have presented thisinformation in such a way as to ensure that there is no discrepancy withthe data presented in the annual securities report. However, theintegrated report itself has not been audited by KPMG AZSA LLC.

Integrated Report 2021 Highlights

Pick Up: Data Analysis Lab̶Interview with Associate Professor Takahiko Kusakabeof the University of Tokyo

P22

As part of the Groupʼs approach to digitaltransformation (DX), it is working to strengthen
its digital marketing. Since April 2021, in an
example of industrial-academic collaboration
with the University of Tokyo, we haveestablished a data analysis lab within theGroup. Takahiko Kusakabe, an Associate
Professor at the university and the personin overall charge of the lab, speaks to us
about the labʼs mission and direction.

Creating Real Value: Our Story

Creating groupwide innovation through digitalmarketing and contributing to making smart

economic activities in Japan and overseas recover to a considerable extent, socioeconomic activities will never fully return to their

Hankyu Hanshin service area and smart society

pre-pandemic state. Since the changes in lifestyles will give rise to needs for new ways of living, the business environment surrounding

In April 2021, we established the Data Analysis Lab within our

the Group is expected to undergo major changes (the coming of the New Normal).

Company

industry-academia

collaboration

withTakahiko Kusakabe

Associate Professor (Dr. Eng.)
Center for Spatial Information Science, the University of Tokyo

the

Completed his engineering doctorate at Kobe University Graduate School in 2010.
Dr. Kusakabe has been in his current position since January 2021 and is engaged
in research and development in the fusion area of information technology andtransportation engineering. Since April 2021, he has been supervising all of thelab s projects as Data Analysis Director of Hankyu Hanshin Holdings.

University of Tokyo, who supervises all of the lab s projects as Data

New lifestyle needs

Analysis Director, about the mission and direction of the lab.

Remote work*

More options for where to live

Accelerated digitalization

What is the mission of the Data Analysis Lab?

More online consumption

Changes in corporate sector
More BCP

More emphasis on SDGs

Emphasis on quality of life

Better private spaces

Rising desire for self-expression andactive role in society

Associate Professor Kusakabe (hereinafter, Kusakabe) The

Kusakabe In 2006, when I was studying at Kobe University, I

mission of the Data Analysis Lab is to tackle various businessparticipated in joint research with Hankyu Corporation andchallenges assisted by data science, for example, eﬃciency

Hanshin Electric Railway. The research produced some

improvement using data and development of new digitalachievements but they were not suﬃcient to move on to thephase of practical implementation. In order to harness researchstrategies.
The Group has various data related to peopleʼs lives ingeneral, obtained from customer relationships such as in railway

results to solve social problems, along with having the latest
technology, understanding the needs and problems of theoperations, real estate, entertainment, and travel. By analyzingﬁeld is also important. At our lab, I focus on understanding andand utilizing such data, we will be able to take effective measures

meeting the ﬁeld needs as much as possible by making use of

Direction of adapting to the New Normal

according to the lifestyles and potential needs of our customers,

In order to achieve sustainable growth even in the business environment described above, we need to appropriately adapt to thewhich will make peopleʼs lives more comfortable and convenient.

New Normal and this deﬁnitely requires DX initiatives. To this end, we will strive to improve proﬁtability and increase operational

on-site experience of the members.

Creating Real Value:
The Processes

However, some of our datasets are not currently maintained

eﬃciency while utilizing digital technology as follows.

for advanced CRM. So, we would like to first accumulate data inusable form, and then organize and analyze it.

Could you be more speciﬁc aboutdata analysis and utilization?

Direction of utilizing digital technology
Launch new products and services considering peopleʼs new attitude toward contactless

Data Analysis Lab consists of Dr. Kusakabe and ﬁve employees

commerce and avoiding crowded spaces, as well as the progress of digitalization

Kusakabe For example, if we look at train boarding/unboarding

Increase operational eﬃciency (productivity) by leveraging robots, IoT and other new

who did not show any significant changes in boarding/unboarding

data, we can divide customers into two groups: one of people

Increase
operationaleﬃciency

technologies

Kusakabe Under the current situation of a declining and aging
population throughout Japan, the revitalization of the region isPick Up

The Group holds data on peopleʼs diverse activities through provision ofOpened within the Company
through industry-academia
collaboration with the
University of Tokyo(April 2021)

the areas along our railway lines. So it is no exaggeration to saythat the Group is the leader in building the future of the entire

data on other businesses, such as purchasing behavior, to find aregion. The Groupʼs promoting CRM to keep pace with the New

solution that will better meet the needs of customers andNormal while leveraging the lab s outcomes will enablestimulate transportation demand.

sustainable growth, eventually leading to the development of theData Analysis Lab

entire community. I think this initiative is extremely productive

Work process at Data Analysis Lab(For details, see the next page.)21

directly reliant on the Group s measures to increase the value of

use with a sense of security. Meanwhile, regarding the latter, we
will analyze their boarding/unboarding data by combining with

(1) Understanding thecurrent situation andidentifying problems(2) Target setting

Promote understandingof the current situationand identify problems
through discussions
with operating divisions
and data analysis.

Set a target aim(hypothesis) usingﬁndings from Step
(1) and propose asolution based on
the data.

(3) Implementation andveriﬁcation of
measures
Implement measures
based on the
hypothesis, verify
eﬀects throughdata analysis,
and develop
better measures.

for myself and other researchers as well, because it has thepotential to be applied to urban smartization in various ways byaccumulating and utilizing big data on peopleʼs lives in general. I
believe that this industry-academia collaboration will not only
lead to the development of the Hankyu Hanshin Holdings Group,
but also to the attainment of a sustainable society.

Hankyu Hanshin Holdings Integrated Report 2021

Hankyu Hanshin Holdings Integrated Report 2021

Operational Area Growth̶Past, Present, and Future

Creating Real Value: Our Story
SpecialFeatureGRAND FRONT OSAKA

Oﬃces, commercial facilities, hotel (InterContinental Osaka),
Knowledge Capital, etc.
Number of shops

See page 27.

Size

Approx. 260

Project
Progress

Umekita initial development area
Approx. 70,000 m²

ﬁnancial

Private-sector zone speciﬁcation

Sta.

Umeda

NU chayamachi

Umekita in order to realize a new city model for Osaka that

Commercial facilities

Society 5.0, and the SDGs. (Initial opening scheduled for

.
Sta
a
ed
hi-

Higas
a Metro

inc

hi

Sta

.

Approx. 260,000 m²

The line to connect Juso Station with Osaka Station to be newly
constructed in the Osaka Station North District (Umekita) Phase II
Development Area.

Tennoji

The line to diverge from the Takarazuka Line and be connected to
Osaka International Airport.

retail businesses, the area has plenty in the way of oﬃces.
Furthermore, we are planning to extend the Kita-Osaka
Kyuko Railway*2 in ﬁscal 2024, to improve between Senri-Chuoand Minoh, a city with an excellent living environment that acts
as a bedtown for those working in the center of Osaka. Suchmeasures are predicted to raise the value of the Senri-Chuo

Considering redevelopment ideas for the
Senri Hankyu Hotel site

the area around Senri-Chuo Station where Senri Hankyu,
Senri Selcy, and other facilities currently stand. Our hotel tothe east of Senri-Chuo Station, the Senri Hankyu Hotel, is duewith an eye on the nature and progress of the nearby
redevelopment project.

【Legend】

In this way, we are continuously striving to develop areas
alongside our routes. For example, we have spent more thana decade in the Nishinomiya-kitaguchi area, developing thelarge-scale commercial facility Hankyu Nishinomiya Gardens
and working to make the area more attractive (see pages

Project summary:• Extension length: Senri-Chuo to Minoh-Kayano (2.5 km)• New stations: Minoh-Semba-Handaimae Station, Minoh-Kayano Station• Estimated project cost: ¥87.4 billion• Demand: 45,000 people per day
Business scheme:• Developers: Kita-Osaka Kyuko Railway and Minoh City (for infrastructure
between Minoh-Semba-Handaimae and Minoh-Kayano stations)• Operated by: Kita-Osaka Kyuko Railway• Applicable grants: Social Capital Development Comprehensive Grant• Kita-Osaka Kyuko expenses: ¥11 billion*Naniwasuji Line (scheduled to open spring 2031)*2 Two stations are scheduled to open, Minoh-Semba-Handaimae andMinoh-Kayano, to the north of Senri-Chuo Station.

In the Senri-Chuo area at present, there are studies underway
looking at how public-private collaborations can redevelop

to cease operations around the end of ﬁscal 2026, and we■ Kita-Osaka Kyuko Line Extension Project

JR Hanwa Line

Kansai International
Airport③ Osaka Airport Line

Hankyu Hanshin Holdings Integrated Report 2021

Airport). As well as a growing concentration of houses andare looking into how to eﬀectively develop the hotel site,

Sole-owned or co-owned properties
H₂O Retailing assets
Area ﬂagged for redevelopment(Commercial facilities etc.)

JR Osaka Loop LineThe line to connect Juso Station with Shin-Osaka Station.

27

Pages 33‒34

To Umeda

Osaka-Namba

Shin-Imamiya
Nankai Line (Airport Line)② Shin-Osaka Connection LineSee pages 25‒26.

Hankyu Hanshin Holdings Integrated Report 2021

Senri Hankyu Hotel

Osaka Monorail
Senri-chuo station

Hanshin Namba Line

JR
Namba

① Naniwasuji Connection Line

Source: Monthly surveys on Osakaʼs and Tokyoʼs (Tokyoʼs 5 central districts) latest oﬃce market conditions (published by Miki Shoji Co., Ltd.)

23

Senri Selcy(Commercial facilities)(Oﬃce building)

Kobe Airport

choose into the future.

Building details

Oﬃce space: 25 ﬂoors (17F‒41F)*Name change to Osaka Umeda Twin Towers North scheduled forspring 2022

(Oﬃce building)Senri Hankyu
Department Store

Senri Asahi Hankyu Bldg.

maximize the Osaka-Umedaʼs value as an area that a multitude

41 ﬂoors above ground;
2 ﬂoors below ground

Complete
openingscheduled
for spring2022

Osaka-umedaof visitors, from throughout Japan and abroad, continue to

Building details

38 ﬂoors above ground;
3 ﬂoors below ground

Senri-Chuo multi-story car park 1

29‒30). Here in Senri-Chuo, another important business centerfor the Group, we aim to build a community that supports a
range of people, replicating our success in Nishinomiya-kitaguchi.
Going forward, we will hold multiple discussions with local
authorities and other related parties as we consider things
more carefully.

Schedule:• December 2015: Acquisition of railway project permission and track permit• December 2016: Start of construction• FY2024: Opening target

24

Hankyu Hanshin Holdings Integrated Report 2021

Hankyu Hanshin Holdings Integrated Report 2021

28

TCFD

In May 2021, we announced our support
for the recommendations of the Task Forceon Climate-Related Financial Disclosures(TCFD) and in line with its suggested categories
we clarify our governance, strategy, risk
management, and metrics and targets. We
also look at the risks and opportunities wehave identiﬁed in urban transportation andreal estate, businesses that are predicted
to be particularly aﬀected by climate change.

Creating Real Value: The Processes

Task Force on Climate-related Financial Disclosures(2) Strategy Table

Notes
Details the type of framework used to incorporate climate-related risks and opportunities, as well as strategies, into management
Anticipates the actual and potential impact (including analysis looking at scenarios involving a 2 C or 4 C rise in temperatures) of
climate-related risks and opportunities, and reﬂects the ﬁndings in business strategies and ﬁnancial plans, etc.
Details how climate-related risks are evaluated and determined, and whether they are being controlled so as to minimize them
Explains progress management for metrics and targets used when evaluating and managing climate-related risks and opportunities

member companies) do the same for risks inherent to their own
division. The Group has also set up a framework that enables thecorrect dissemination of information if an unforeseen incident occurs.
Under this framework, each business site conducts an annual risk
survey that brings to light, speciﬁcally, risks related to climate

Carbon oﬀset
credits【Real estate】• There is a limit to energy-saving measures possible with older
buildings, which might lead to purchase costs for a certain amountof emission oﬀset credits.
• Settings of oﬀset credits might lead to an increase in construction
costs due to rising prices for construction materials (concrete,iron, steel, etc.)

Mediumterm

Response toGHG*¹emission
regulations for
ZEBs,*² etc.

【Real estate】【Real estate】• If it becomes necessary to introduce devices, etc., with excellent• If it becomes necessary to strengthen the environmental
environmental credentials, it might lead to an increase incredentials of new buildings, it might lead to improved
construction costs in development and renovation projects.
competitiveness through reduced operating costs and• If older buildings require replacement or renewal, it might lead togreater diﬀerentiation.
an increase in construction and renovation costs.

Mediumterm【Railway operations】• If hydrogen energy or new technologies like autonomous 【Real estate】
driving are implemented in society, it might lessen the • If the price of energy-saving equipment and renewableenergy materials drops with the spread of thesecomparative environmental advantages of trains.
Spread of newtechnologies, it might limit construction costs.
technologies【Real estate】• If new technologies are introduced, we might expect a• Introduction of new technologies related to energy-saving or
certain level of reductions of facility management costs
renewable energy might lead to an increase in construction
such as electricity expenses, fuel costs, etc.
costs.

direction of the Groupʼs responses to climate-change-relatedchange (natural disasters, etc.), accidents, information management,

issues. Particularly important topics are reported to, or brought upcompliance, and other organizational management. An appropriate
response is then determined for each. This risk analysis and the risk
response situation are reported to the Board of Directors each year.
Moreover, from ﬁscal 2021, the contents of the Corporate

Promotion Framework.)

Sustainability Committeeʼs deliberations are shared with the(2) Strategy (identifying risks and opportunities)

and are reﬂected in the Groupʼs overall risk management.

risk management oﬃce and individual core business divisions,
As progress was made with analyzing climate-change-related issues,(4) Metrics and targets
The Group has set “environmental protection” as a priority issue for its

Mediumterm

inﬂuence business, especially in railway operations and real estate,sustainable management, and a CO₂ emission reduction target has been set

which are predicted to be particularly aﬀected by climate change.

as a groupwide non-ﬁnancial key performance indicator (KPI).

(Major responses to risks and opportunities)

In railway operations and real estate, to better evaluate and

The Group is already responding to these risks and opportunities

manage climate-change-related risks and opportunities, weboth on a groupwide level and through the risk management

have set individual non-ﬁnancial KPIs and we are working tostructure in each of the individual business divisions.

maintain and improve our businessʼ resilience to climate change.

Taking the response to physical risks to railway operations as an
example, we are advancing countermeasures that include

collaboration with the Japanese government (see pages 35‒36 formore details on safety measures). In our real estate business, we are*produced by Hankyu Hanshin Holdings and subsidiariesʼ Japanese worksites

Rate of CO₂ emissions cuts (2): Down 40% on FY2014 levels(in FY2031)*produced by energy consumption at Hankyuʼs and Hanshinʼs railway operation

carrying out work to prevent ﬂooding resulting from surface run-oﬀ*We are currently reviewing the CO₂ emission reduction targets above in order tohelp achieve carbon neutrality (decarbonization) by 2050.

due to sudden heavy rain. We are also making progress with the■ Railway Operations

development of buildings with excellent environmental credentials
Going forward, for categories in which impacts are predicted
analysis̶suchascalculating

ﬁnancial

impacts̶andalso

incorporate our responses to these into our business strategies.

management. The oﬃce is responsible for identifying and analyzing
pan-organizational risks, while business divisions (including groupLong service downtime* due to natural disaster: Zero*Non-operational for 2 days or more
Target: Hankyu Corporation, Hanshin Electric Railway, Kita-Osaka Kyuko Railway,
and Nose Electric Railway■ Real Estate
BCP compliance rate for large buildings* in the Umeda area: 100%

*Buildings completed in FY2022 or after, which have a total ﬂoor space of 30,000 m²
or greater, and have emergency power supplies for 72 hours in three or morestories. Applied from Osaka Umeda Twin Towers South, which is scheduled tobe completed in FY2022.

【Real estate】• If our response to greater customer needs for buildings
and homes with excellent environmental credentials issuitably fast, it might lead to greater diﬀerentiation fromour competitors and an increase in sales and property
values.

Changes ininvestorsʼ
evaluation
priorities【Groupwide】• With the ESG investment trend gathering momentum, if weare too slow to respond to and disclose ESG themes, it mightlead to a loss of reputation among investors and an increase incapital procurement costs.

【Groupwide】• With the ESG investment trend gathering momentum,
if we can shift to businesses that are more considerateof carbon reduction and environmental issues, it mightlead to securing new investors who are highly interested
in ESG themes and a decrease in capital procurement
costs.

Short tolong term【Railway operations】• Ultra-large-scale typhoons and increasingly heavy rainfall
might lead to a greater chance of damage due to ﬂooding (ofAbnormal
marshaling yards, subway stations, electrical equipment, etc.) 【Real estate】
weather• As demand for buildings, etc., that are highly resistantor destruction of embankments.
(intensiﬁcation
to damage̶ through BCP measures, support for people【Real estate】
of natural
unable to get home, etc.̶grows, if we can provide• If commercial facilities or railways are forced to suspenddisasters)
facilities that meet those needs, it might lead to greater
operations, etc., due to larger typhoons, etc., it might lead to acompetitiveness and expanded sales.
decrease in the number of visitors or reduced sales.
• Flooding resulting from surface run-oﬀ might lead to a greater
chance of damage to our facilities.

Short tolong term

Rising averagetemperatures

Environmental certiﬁcation rate (Green Building, etc.) for large
buildings* used for oﬃce or commercial applications: 100%

*Buildings completed in FY2021 or after and which have a total ﬂoor space of
30,000 m² or greater (excl. buildings shared with other companies)
Note: Buildings that have acquired the Development Bank of Japanʼs DBJ Green
Building certiﬁcation: Hankyu Nishinomiya Gardens, HEP FIVE, Umeda 1-1
Project (currently certiﬁcation for the planning for the Osaka Umeda Twin
Towers South), and Kobe Sannomiya Hankyu Building

Medium tolong term

Changes in
consumerpreferences【Real estate】• If our response to greater customer needs for buildings andhomes with excellent environmental credentials is too slow, it
might lead to a decrease in property values and brand power(lower rents, occupancy rates, sales numbers, etc.).

Rising sea
levels【Railway operations】• The rise in average temperatures might lead to an increase
in repair costs for rails, overhead lines, and above-groundfacilities.
• If summer productivity drops due to intense heat, it might leadto an increase in personnel expenses.
【Real estate】• Responding to rising average temperatures might lead to anincrease in costs to strengthen our air-conditioning capabilities.
• If summer productivity drops due to intense heat, it might leadto an increase in construction expenses.
【Groupwide】• Water ingress into our facilities due to high tides or ﬂooding
might lead to an increase in the chances of damage occurring.

Medium tolong termーMedium tolong termーLong term

Financial Section andCorporate Dataand suitability for BCPs, as detailed in (4) metrics and targets.
to be particularly large, we will continue to advance further with

(3) Risk management
The Group has established a dedicated risk management oﬃce in
the Personnel and General Aﬀairs Division to oversee groupwide risk

33

■ Groupwide Targets
Rate of CO₂ emissions cuts (1): Down 26% on FY2014 levels(in FY2031)

Changes inenergy mixes/ 【Real estate】
energy• Increased efficiency for renewable energies might lead to【Real estate】
demand trends
an increase in facility management costs such as electricity• If we have excellent environment credentials for new
expenses, fuel costs, etc. A rise in the price of constructionbuildings, it might lead to improved property values andmaterials might lead to an increase in construction costs.
sales.

Creating Real Value:
The Foundations

reinforcement work on sloped trackside embankments, steps toprevent water ingress at marshaling yards, train evacuation plans
where rivers are predicted to ﬂood, and bridge replacement work in【Railway operations】• Energy price rises might lead to improved priceadvantages for trains, which are more energy efficientthan personal cars. In such a case, we might expect
customers to shift to railway transport.

Creating Real Value:
The Processes

the Group followed the process outlined in the chart on the opposite
page to identify risks and opportunities that have the potential to【Railway operations】• Energy price rises might lead to an increase in running costs(electricity expenses) in our railway operations.

Creating Real Value:
Our Storyat, the Group Management Committee or Board of Directors, andincorporated into the Groupʼs overall management framework.
(See page 31 for more details on our Sustainable Management

ーMessages fromthe Top Management(3) Risk Management(4) Metrics and Targets

Committee is chaired by the Groupʼs CEO and meets twice a year
(in September and February). The committee takes short-,
medium-, and long-term perspectives when discussing theTimeframe

ProfileCategory(1) Governance(2) Strategy(1) Governance

Opportunity

Medium tolong term

Carbon tax
and costs

Creating Real Value:
The Processes

We will continue to proactively disclose information in line with the TCFDʼs disclosure framework.
TCFDʼs recommended disclosure categories

Risk【Railway operations】【Railway operations】• The imposition or raising of carbon taxes, etc., might lead to an • The imposition or raising of carbon taxes, etc., might
increase in running costs (electricity expenses) in our railway
lead to an increase in gasoline and electricity prices.
operation business.
This could lead to improved price advantages for trains,which are more energy efficient than personal cars.
【Real estate】
In such a case, we might expect customers to shift to• A jump in the price of building materials (concrete, iron, steel,railway transport.
etc.) with a change in costs resulting from carbon tax, etc.,
might lead to an increase in construction costs in development 【Real estate】
and renovation projects.
• To avoid the impact of carbon tax, etc., we would need
• An increase in electricity expenses, fuel costs, etc., might leadto accelerate our introduction of renewable energies,
to an increase in facility management costs.
which might lead to a better reputation among tenants.

for more details) to display our governance, strategy, risk management, and metrics and targets. At the same time, we have identiﬁed risks andopportunities in urban transportation (railway operations) and real estate, which are predicted to be particularly aﬀected by climate change.

Hankyu Hanshin Holdings Groupʼs Corporate Sustainability

Major climate-related risks and opportunities facing the Group

Category

Based on our Hankyu Hanshin Holdings Group Sustainability Declaration, we are pushing forward with a variety of ESG (Environmental, Social,and Governance) initiatives. As part of that, in May 2021 we announced our endorsement of the Task Force on Climate-related Financial
Disclosures (TCFD). In response to the recommendations released by the TCFD, we have used their suggested disclosure categories (see below

Government policy/legal regulations

March 2021

Kyoto-kawaramachi

Transition risks

March 2012

Hankyu Kyoto Line①

to the Osaka-Umeda area from a wide region and we will

Approx. 254,000 m²

Senri-Chuo multi-story
car park 3

Hankyu Senri-Chuo Bldg.

Technology

March 2002

②
Juso

Line

Approx. 14 mins. toShin-Osaka Station
Approx. 20 mins. to
Umeda Station
Approx. 13 mins. to
Osaka Airport Station

TokaidoShinkansen

MarketShibuya(Tokyo)Tokaido Shinkansen Line

Umeda
(Osaka)Senri-Chuo multi-story car park 2
Linear Chuo Shinkansen
Hokuriku Shinkansen

Reputation

0
Shinjuku(Tokyo)Mainwith the Japan World Exposition, Osaka. The current line
terminal is Senri-Chuo Station, and the surrounding area is
Osaka-Umeda areas and Osaka International Airport (Itami

To TokyoAcute500,000

Shin-Osaka(Osaka)Sanyo Shinkansen Line

Senri-Chuoʼs Massive Potential as a
Sub-City CenterIn 1970, the Kita-Osaka Kyuko Railway was opened to coincide

incredibly convenient for its links to the Shin-Osaka andEsaka

Shin-Osaka

To Hakata

Port Liner

In particular, putting these lines in place will raise accessibility

Bampaku-kinen-koen

Financial Section andCorporate Data

Total ﬂoor space

1,000,000

Yodoyabashi/ Shinsaibashi/
Namba
Hommachi(Osaka)(Osaka)Umeda 1-1 Project
Osaka Umeda Twin Towers South(Hanshin Umeda Main Store)Oﬃces, department store,
event halls, etc.

1,500,000

Umeda(Osaka)To Kadoma-shi

Senri-Chuo

Physical risks（m2）

2,000,000

0HanshinHankyu Kobe Line

Aerial photo of the Senri-Chuo area

Minoh-Semba-Handaimae Station (provisional)

area even further.
Shin-Osaka

JR Osaka Station(underground station)

Kobe-sannomiya

NaniwasujiLine*■ Osaka-Umeda area oﬃce ﬂoor space
2,500,000

1,000,000③
Sanyo Shinkansen

is currently investigating plans for three new lines.

Oﬃces, department store, etc.

To Takarazuka

Osaka International
Airport(Itami Airport)

Financial Section andCorporate Data（m2）

2,000,000

Osaka Airport

Umekita Phase II Development Area

include the Linear Chuo Shinkansen Line), Hankyu Corporation

Oﬃce space (incl. Sky Lobby, etc.):
approx. 103,000 m²

3,000,000

Museum, experiential learning facilities, roofed open
spaces, restaurants, shops, etc.

New Lines Planned byHankyu Corporation(Itami Airport), and Shin-Osaka Station (future plans for which

Umeda Hankyu Bldg.*(Hankyu Umeda Main Store)
Total ﬂoor space

Our wholly owned and shared investment properties, etc.

4,000,000

03

Kansai International Airport, Osaka International Airport

DIAMOR OSAKA(Underground facility)

Tokyo, Nagoya,Fukuoka■ Oﬃce ﬂoor space by major area (as of March 31, 2021)

Main purposes

Enhancing Accessibility in Osaka-Umeda
In order to increase connections between Osaka-Umeda and

Osak

Os

PROJECT
Project
Progress

Number of guest rooms

1,030

are

Minoh-Kayano Station (provisional)

Kita-Osaka Kyuko Line extension(Scheduled to open in FY2024)

summer 2024; complete opening in ﬁscal 2028)

Hotel Hankyu RESPIRE OSAKA

projects*1 An area located between the main urban area and the suburbs

Osaka Metro

Nis
tro
Me
ak

a

ash

Approx. 12,500m²

Creating Real Value:
Our StoryOﬃces, commercial facilities,
theater

Kit

Approx. 45,000m²

Note: Speciﬁcations for private-sector zones are those at the start of construction(December 2020); speciﬁcations for urban open spaces are those included in theinitial proposal (May 2018).

takes into account themes such as the new or next normal,

collaborative

times.

Osaka Monorail Line

Site area
Total facility ﬂoor space

Creating Real Value:
The Foundations

Kansai International
AirportHERBIS ENT

Oﬃces, hotel, commercial
facilities, multipurpose halls*We will establish platform facilities conducive to life design innovation (approx. 10,000m²) and innovation facilities (approx. 20,000 m²: MICE facilities, co-working space,
SOHOs, etc.), and collaborate with Knowledge Capital, the intellectual creation hub of
GRAND FRONT OSAKA and other such functions to pursue the creation of life design
innovation.

Creating Real Value:
The Foundations

Osaka-Umeda
Approx. 2.5 million users per day

JRanCreating Real Value:
The Processes

HERBIS OSAKAThe Ritz-Carlton Osaka

submitUrban open space speciﬁcations

Creating Real Value:
The Processes

See page 27.

Kyoto

to

HankyuTakarazuka Line

Hanshin
Osaka-Umeda
Sta.

Initialopeningscheduled
for summer
2024

2.5 million

Kobe

Properties)

In line with our community building concept of fusing
greenery and innovation, we are leading urban development
in Osaka, the Kansai region, and even the world from here in

Chronic

Number of passengers per day:Hankyu Hanshin Holdings Group: Hankyu
Osaka-umeda Station, Hanshin Osaka-Umeda Station
Other railway companies: JR Osaka Station, Osaka
Metro Umeda Station, etc.

Oﬃces, hotels, commercial facilities,
MICE facilities, residences, etc.

Hanshinconsortium was selected by the Urban Renaissance Agency

Commercial facilities

Metro

JR Osaka Station

Approx. 45,000 m²

Core function,* hotel,
residence, etc.

Hankyuto lead development of the area, which began in December
2020.

(Umekita) Phase II Development area. As a result, theNU chayamachi PLUS

public-private

currently underway to adapt the area to the changing

Creating Real Value:
Our Story

Site area

Main purposes(including

application to develop the Osaka Station North District

Hotel, commercial
facilities, oﬃces,
theaters, etc.

Hankyu Sanban Gai
Shopping Center
Hankyu Terminal Bldg.

Osaka

Urban open space speciﬁcation

base̶has to oﬀer and work to maximize its value.

approx.

nd(U

South zone: approx. 30,430 m²

Approx. 30,430 m²
Approx. 407,250 m²

Creating Real Value:
Our Story

North zone: approx. 15,720 m²

With Senri-Chuoʼs core function as a sub-city
center,Approx. 15,720 m²
Approx. 149,200 m²

Midosuji Line

Umekita Phase II Development Project
Site area

HankyuOsaka-umeda
Sta.

led South Bldg.
南館
duntio he )Sta n: sc 23aak tio g 20
Os sta rin
JR und sp
ro enHotel new Hankyu Osaka
erg opto

Aerial photo of the Osaka-Umeda area

twoand are home to Japanʼs ﬁrst large-scale “new town,”
Senri New Town, which was oﬃcially opened in 1962.
South zone

Site area
Total ﬂoor space

Sta.

than

eda

less

hi-Um

hotels,

We will continue to dig down into the potentialUmfacilities,
measuringan excellent business environment.
that the Osaka-Umeda area̶our most important04

two cities in Osaka Prefecture, Toyonaka and Suita,

North zone

Corporation; led by Mitsubishi Estate Co., Ltd.) formed aconsortium with six design and operating companies

Messages fromthe Top Managementarea

kilometers in diameter. It is consistently praised as

Project
Progress

The large expansive Senri hills stretch across parts ofZone

Profilecommercial

Messages fromthe Top Management

Applause Tower
Hotel Hankyu
International

Artistʼs impression of completed building

Private-sector zone speciﬁcations

A joint venture of nine developers (including Hankyu

North Bldg.

Senri-Chuo Area:a Sub-city Center*¹

PROJECT■ Project Summary

Than 45,000 m² of Open Green Spaces

OSAKA, both of which we are involved in, there has
been an equivalent supply of sophisticated oﬃces.
Now, there are seven railway stations as well ascompact

02

Osaka-Umeda Is Being Reborn with Moreyears, with the development of facilities like theUmeda Hankyu Building and GRAND FRONTaOsaka Station North
District (Umekita)
Phase II Development
Project

ProfileRegionʼs major transport hub. In the past, the area
prospered primarily for its merchant culture andthere were comparatively few oﬃces. In recent

Operational Area Growth̶Past, Present, and Future

PROJECT

Kita-Osaka
Kyuko Line

To Juso/Shin-Osaka(planned NaniwasujiConnection Line andShin-Osaka
Connection Line)

Kita-Osaka Kyuko Line
Senri-Chuo station

Osaka-Umeda Area Now

Osaka-Umeda is the Greater Kyoto-Osaka-Kobeoﬃces,

Messages fromthe Top Management

We take a look at Osaka-Umeda, our principal
business base, and other areas and explore
in detail how they have developed, theircurrent situation, and the large-scale projects
that are still underway. As an example ofcommunity building that is the result ofmany yearsʼ eﬀorts, we also introduce initiatives
in the Nishinomiya-kitaguchi area.

Creating Real Value: Our Story

institutions, legal oﬃces and more concentrated in

22

Special Feature: Operational Area Growth̶Past, Present, and Future

Pages 23‒30

Future potential

Financial Section andCorporate Data

updated long-term vision.

▶Strengthening digital marketing by integrating data with groupwide ID

What do you expect this initiative to be applied
to the future?

frequency even during the pandemic, and the other of those who
showed a steep decline. For the former, we will continue toprovide safe transportation services and assure their continued

Under the name of the Hankyu Hanshin DX Project, further accelerate plans to integrate it into theCreating Real Value:
The Foundations

Improve
proﬁtability

products and services used in every aspect of peopleʼs urban life. Going

Special Feature

Creating Real Value:
Our Story

Growing demand for real-life(but safe) experiences

Rising desire for communication in reaction to the shift to virtual*Working from home, digital nomadism, working at a satellite office, workation, etc.

Is there anything you are aware of when you
explore a solution?

ProfileMore even and diverse
travel demand

Messages fromthe Top Management

More dispersed workforce,dispersed learning

forward, we will integrate these with a groupwide ID HH cross ID andmake use of it for the entire Group to realize eﬀective marketing.

Development trajectory

ProfileProﬁle(CRM). We asked Associate Professor Takahiko Kusakabe of theLifestyle changes
Changes in population behavior
Fewer unnecessary outings

More workplace ﬂexibility

through

University of Tokyo to promote customer relationship management

The New Normal: Lifestyle changes and new lifestyle needs

More emphasis on health and safety,
more health consciousness

Data Analysis Lab

Pick Up

Adapting to the New Normal
Changes in the business environment triggered by the COVID-19 pandemic (the coming of the New Normal)
The pandemic has triggered rapid changes in our lifestyles. Going forward, even if the eﬀects of the pandemic once die down and*1 Greenhouse gases*2 Zero-Energy Building

Hankyu Hanshin Holdings Integrated Report 2021

Hankyu Hanshin Holdings Integrated Report 2021

34

Creating Real Value:
The Foundations

Reference Guidelines

Role of Each of Our Publications
Publication

Contents

Integrated Report(this report)

Particulars as per the Contents page.

Group Guide

We compile an annual Group Guide to aid in understanding of the Group outline. This Group Guide includes anoutline of the scope of Group businesses, and a list of Group companies.

Securities Report*

Based upon Article 24, Paragraph 1 stipulated in the Financial Instruments and Exchange Act, this report is required
to be submitted to the Kanto Local Finance Bureau. Please consult this report for detailed ﬁnancial information.

Corporate
Governance Report*

This report is in accordance with Japan s Corporate Governance Code and is required to be submitted to the Tokyo
Stock Exchange. Please consult this report for information on our Corporate Governance stance and systems.

Sustainability
Data Book

This data book contains detailed information regarding our Group s ESG initiatives. Please consult this data bookfor particulars about our ESG strategy.

Safety Report*

In observance of Article 19, Paragraph 4 of the Railway Business Act, this report is aimed at promoting a broad
understanding of our eﬀorts toward preserving transportation safety. It systematically presents information
about safety for each of our railway companies (Hankyu Corporation, Hanshin Electric Railway, Kita-Osaka Kyuko
Railway, and Nose Electric Railway).

Financial Section andCorporate Data

This report references
the International
Integrated Reporting
Councilʼs International
Integrated
Reporting Frameworkand the Ministry of
Economy, Trade andIndustryʼs Guidance forCollaborative Value
Creation. It also
references the Global
Reporting Initiativeʼs GRI
Standards for its ESG
information.

*Japanese only

Hankyu Hanshin Holdings Integrated Report 2021

4

Profile

Value Creation Trajectory
The Group has been around for more than a century, and during that time eﬀorts in urban transportation and community buildingin operational areas such as Osaka-Umeda, among others, have created new value in a variety of forms.

Business Changes and Growth Trajectory
1913

1924

Formation of Takarazuka Girlsʼ Revue(currently Takarazuka Revue Company)

Completion of Takarazuka Grand Theater

Hankyu 1907

Entertainment

1910

1962

Real Estate

1907

Start of sales of Ikeda Muromachi Residential Land Plots

Urban Transportation

Completion of New Hankyu Building

1926

Establishment of the Minoh‒Arima
Electric Railway Company (theforerunner to Hankyu
Corporation) by Ichizo Kobayashi

HotelsOpening of
Takarazuka Hotel

1910

1969
Opening of Hankyu Sanban Gai

1964
1948

Opening of Hotel new Hankyu Osaka

TravelInternational Transportation

Opening of Takarazuka Line
(Umeda‒Takarazuka) and MinohLine (Ishibashi‒Minoh)

Launch of Hankyu Corporationʼs airline agency;
beginning of operations as agency for Pan American Airways

1948
TravelHanshin 1899

International Transportation
Launch of Hanshin Electric
Railwayʼs airline agency business

1899

Urban Transportation

Establishment of Settsu
Electric Railway

1905

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

1909

Completion of 30 rental
houses in front ofNishinomiya Station (Launchof land and buildings leasing
business)

1924

Launch of land and buildings sales businessEntertainment
Opening of
Koshien Stadium

1935

Establishment of Osaka Baseball Club
(Osaka Tigers, currently Hanshin Tigers)

1967
HotelsOpening of Hotel Hanshin

1900‒

1960‒

Giving form to our operational area from the starting point of Osaka-Umeda
and creating all sorts of value that ties in to peopleʼs lifestyles

Promoting community building in
the Osaka-Umeda area

Ichizo Kobayashi upon
the founding of therailway businessShuzo Toyama, Hanshin
Electric Railwayʼs ﬁrst
president

In 1907, Ichizo Kobayashi founded the Minoh-Arima
Electric Railway Company, which would later
become the Hankyu Corporation. With a uniquebusiness model that combined residential area
development, Kobayashi was an early leader inprivate railway management. Going back eight
years earlier, 1899 saw the establishment of Settsu
Electric Railway by the railwayʼs ﬁrst president,
Shuzo Toyama. With the company, Toyama laid
the foundations for Hanshin Electric Railway as apioneer of intercity electric railway.

A Hankyu train crosses the Inagawa Bridge(circa 1910)

5

1927

Real Estate

Hankyu Hanshin Holdings Integrated Report 2021

Performance ofTakarazuka Girlsʼ Revue(1927)by Osaka Tigers (nowHanshin Tigers) poster

Both Hankyu Corporation and Hanshin Electric
Railway have focused their energies on developing
their operational areas as their railway networks
spread outward from Osaka-Umeda.
As well as providing homes in the line-side
area, they oﬀer new ways of living in the city
suburbs. They have also opened businesses liketheir respective department stores, sited at therailway terminal, and hotels̶again contributing
to community building.
Through unique forms of entertainment, thecompanies have brought new types of amusement
and culture to people, still charming them in theirthousands with the Takarazuka Revue (formed
1913), Hanshin Koshien Stadium (opened 1924),
and Hanshin Tigers baseball team (established1935).

Umeda at the completion of the Hankyu Grand
Building (1977)

Beginning in the 1960s, development of facilities
progressed mainly in Umeda, including the New
Hankyu Building, the Dai Hanshin Building, Hotel
new Hankyu Osaka, and Hotel Hanshin.
From 1966, Hankyu Corporation began thecomprehensive development of Hankyu-umeda
Station. The station was moved and expanded
to cater to the growing numbers of users,
transforming it into a safer, more comfortablehub. At the same time, Hankyu Sanban Gai was
opened underneath the new station. Following
up on the station, the company soon after
developed the directly connected Hankyu Terminal
Building and a number of oﬃce buildings andcommercial facilities, including the Hankyu
Grand Building. All of these projects catapulted
the value of Osaka-Umeda as a business basethat brings people to the area.

May 2010

Nov. 2007

Completion of Umeda Hankyu
Building (Full opening of
Umeda Main Store of Hankyu
Department Store in November
2012)

Opening of Umeda Hankyu Building(Hankyu Department Store Umeda
Main Store, Phase I Building)

Beginning of operations ofHanshin Namba Line (between
Nishikujo‒Osaka-Namba)

Apr. 2016

Apr. 2011

Commencement of S-POINT* service

Launch ofMimamorumesafetymonitoring
serviceMar. 2010

Completion of the renovationsof Hanshin Koshien Stadium

May 2017

Messages fromthe Top Management

Announcement of the Hankyu Hanshin HoldingsGroupʼs Long-Term Management Vision for 2025

Apr. 20132014

Opening of GRANDFRONT OSAKA

Takarazuka Revue marks 100th
anniversary since its ﬁrst
performance in 1914

Apr. 2018

Completion of Umeda 1-1
Project Phase I (Building
Name: Osaka Umeda Twin
Towers South) (June 2018:
Partial opening of Hanshin
Department Store [Hanshin
Umeda Main Store])

Creating Real Value:
Our Story

Establishment of Hankyu Hanshin
Holdings, Inc.

Opening of Hankyu Nishinomiya Gardens

Mar. 2009

Opening of a logistics center in Indonesia as a joint
project of the Real Estate and the International
Transportation businesses

Sep. 2012

Nov. 2008

Sep. 2009

Mar. 2016

Opening of Umeda Hankyu Building Oﬃce Tower

Profile2006

Opening of remm Hibiya(First in a series of remm-branded hotels)*A loyalty points system operated in tandem with H₂O Retailing GroupStrengthening each businessʼ
competitiveness throughmanagement integration

Hanshin Series 8000
train

2020‒
Utilizing expertise to achievesustainable growth

Umeda Hankyu Building concourse

Artistʼs impression of completed Umekita Phase II(from a December 2020 proposal)

Post-integration, developments included Hankyu
Nishinomiya Gardens, the renovation of Hanshin
Koshien Stadium, the Umeda Hankyu Building,and GRAND FRONT OSAKA. These initiatives by
the Hankyu Hanshin Holdings Group managed toprogress and deepen community building inthese areas.
Furthermore, in 2009, the Hanshin NambaLine opened, completing an expansive network
spanning Kobe, Osaka, and Nara.
By merging, Hankyu and Hanshin have beenable to harness the ample synergies inherent intheir various operations in their quest to further
enhance corporate value.

Currently, the Group is studying track placement,
for instance by extending the Kita-Osaka Kyuko
Railway and building the Naniwasuji Connection
Line and Shin-Osaka Connection Line, to further
enhance the railway network.
As illustrated by the development of Osaka
Umeda Twin Towers South, Phase I of which isalready complete, and the Osaka Station North
District (Umekita) Phase II Development, theGroup is ﬁrmly promoting large-scale development
projects.
The Group is using the community building
abilities it has accrued to continuously provide
people and society with new value, particularlyin the Osaka-Umeda and other operational
areas, and will connect this to its future sustainablegrowth.

Hankyu Hanshin Holdings Integrated Report 2021

Financial Section andCorporate Data

In 2006, Hankyu Corporation and Hanshin Electric
Railway integrated their businesses and Hankyu
Hanshin Holdings Group was born.
In the Group, the two companies were able
to pool their know-how, talent, and other assets
in a cohesive team eﬀort across various businessdomains, such as the Urban Transportation andReal Estate businesses, so as to enhancecompetitive ability throughout their portfolio
and boost corporate value.

Pushing forward further operational
area development focused on
Osaka-Umeda

Creating Real Value:
The Foundations

Hankyu Series 9000
train

2010‒

Creating Real Value:
The Processes

2000‒

6

Profile

Business Overview
The Hankyu Hanshin Holdings Group has core businesses in seven business domains: Urban Transportation, Real Estate,Entertainment, Information and Communication Technology, Travel, International Transportation, and Hotels. Further, under the
direction of the Company, which supervises the Group s management, these businesses are operated by six core companies:

Urban Transportation

Nature of Business

Railway operation business

These operations form a network in the Kansai area that
centers on the railway lines of Hankyu Corporation andHanshin Electric Railway. Hankyu Corporation s railway
lines link Osaka (Umeda) with Kobe, Takarazuka, andKyoto. Hanshin Electric Railway is an operator with railway
lines that directly link Kobe with Osaka s major northernand southern terminals, which are Osaka-Umeda andOsaka-Namba, respectively. The operating kilometers ofHankyu Corporation and Hanshin Electric Railway are
143.6 km* and 48.9 km,* respectively.
*Including tier 2 railway operators

Automobile business (bus, taxi)

This business operates bus and taxi services, which coordinate
with railway services to increase convenience in line-side areas.

Retailing businessEntertainment

Leasing businessThis business owns numerous office buildings andfacilities, mainly in the Osaka-Umeda area and thelineside areas of the Hankyu and Hanshin lines. In
recent years, the business has been actively
pursuing development of real estate in the Tokyo
metropolitan area.

Real estate sales and other businessThis business markets condominiums, residential
land lots, and detached houses, mainly in the linesideareas of the Hankyu and Hanshin lines and the Tokyo
metropolitan area. In recent years the business hasentered the ASEAN region. The business is engaged
in property management, building maintenance, andother building operation and management services
as well as real estate fund management, including
private placement funds and J-REIT businesses.

Sports businessThis business manages the Hanshin Tigers
professional baseball team, which has a history of
more than 80 years, as well as the team s homeground and high-school baseball mecca Hanshin
Koshien Stadium and related businesses. The
business also operates a music business (Billboard
Live).

Stage businessThis business manages the performances of the
Takarazuka Revue̶an organization which has morethan a century of history̶sells related products,
and manages and operates related businesses
engaged in video and music distribution. Further,the business operates Umeda Arts Theater andpromotes stage productions.

*1

Hankyu Corporation

Hankyu Corporation

Hankyu Hanshin Properties

OperatingincomeRevenues fromoperations

Hanshin Electric Railway

Segment
assetsFiscal 2021 Results*²

Core Companies

This business manages shops mainly inside railway stations
on the Hankyu and Hanshin lines.

Real Estate¥

Hanshin Electric Railway

156.9 billion（YoY¥

30.9 %）（YoY‒ ¥ 5.1 billion¥

814.7 billion（YoY

0.2 %）¥

20.2 %）

28.9 billion（YoY（YoY n/a）¥

188.4 billion

30.3 %）

1,298.1 billion（YoY +10.2 %）¥42.2 billion（YoY

43.0 %）‒ ¥ 2.3 billion（YoY n/a）¥

106.3 billion（YoY

1.2 %）*1 As for our Real Estate Business, Hankyu Corporation and Hanshin Electric Railway collaborate with Hankyu Hanshin Properties to promote urban development of realestate owned by Hankyu Corporation and Hanshin Electric Railway for rent and development in cooperation with transportation networks, local governing bodies andothers in Umeda and their line-side areas.
*2 In fiscal 2021, the Group s consolidated revenues from operations and operating income fell significantly compared to the previous fiscal year due to the massive impactof the COVID-19 pandemic on many of the Group s businesses, including the urban transportation, hotels, entertainment, real estate, and travel businesses.

7

Hankyu Hanshin Holdings Integrated Report 2021

Hankyu Corporation, Hanshin Electric Railway Co., Ltd., Hankyu Hanshin Properties Corp., Hankyu Travel International Co., Ltd.,
Hankyu Hanshin Express Co., Ltd., and Hankyu Hanshin Hotels Co., Ltd. Through these core businesses and companies, we will foster
organic growth across the entire Group.

ProfileInformation andCommunication
Technology

Hanshin Electric Railway

Hankyu Hanshin Express¥

5.6 billion‒ ¥ 7.4 billion¥

58.7 billion¥

29.6 billion

¥

¥

（YoY

0.8 %）（YoY +5.5 %）64.6 %）

37.3 %）

85.6 billion（YoY +12.3 %）（YoY n/a）（YoY

Hankyu Hanshin Hotels

2.3 billion（YoY n/a）

52.6 billion（YoY +8.6 %）¥19.1 billion（YoY

68.2 %）‒ ¥ 17.9 billion

Creating Real Value:
The Foundations

12.0 billion（YoY

This business operates a wide rangeof hotel formats, from city hotels inurban locations like Tokyo or Osaka
through to no-frills hotels, which mainlycomprise guest rooms for overnightstays.
Hankyu-Hanshin-Daiichi Hotel Group
Directly managed hotels: 22
Franchised hotels: 27
Total hotels: 49(with 12,644 guest rooms)(As of September 1, 2021)
In addition to the hotels mentioned
above, the business manages The
Ritz-Carlton Osaka, based on analliance with the Ritz-Carlton chain ofinternational luxury hotels.

¥

0.8 %）

Hotels businessAs a global forwarder, we have establishedbases in regions all over the world anddeveloped a comprehensive international
logistics business. As the global businessdiversifies, we provide a one-stop logistics
solution that is optimized to our customersʼ
diverse needs by bringing together air
freight, sea freight, and logistics services
as a logistics consultant.
Domestic bases: 50 / Overseas bases: 134(As of September 1, 2021)

58.1 billion

（YoY

¥

Hankyu Travel International

International transportation
business

Creating Real Value:
The Processes¥

This business plans, markets, arranges,
and supports travel for Japanese people
in Japan and overseas and for inboundtourists.
The business provides various travel
services which include: media sales to sell
packaged tours through advertisements
in newspaper, internet and other media,
individual tours with itineraries that canbe created freely, group tours that we
propose for study or as educational tours
visiting enterprises or schools, countersales at shops, tours for the inboundinternational visitors and arrangementsfor overseas business trips.

HotelsCreating Real Value:
Our Story

This business is in charge of theinformation services business, which
offers a range of IT-based services such assystem development; the broadcasting
and communications business, which
provides multi-channel broadcasts, internet
services, and fixed telephone services;and the safety/education business, which
operates ProgLab robot programmingclasses for children, and Mimamorume,a child safety service which monitors
children s journeys to and from school.

Travel business

International
Transportation

Messages fromthe Top Management

Information and communication
technology businessTravel（YoY n/a）¥

91.2 billion（YoY +3.6 %）Financial Section andCorporate Data

Hankyu Hanshin Holdings Integrated Report 2021

8

Profile

Service Area
Expanding the service area from Kansai, centering around Osaka-Umeda
and its line-side areas to the Tokyo metropolitan area and to Asia
Forming the Railway Networks That Are the Arteries of Kyoto-Osaka-Kobe
and the Rest of the Kansai Region
Hankyu Corporationʼs railway lines link Osaka-Umeda with Kobe, Takarazuka, and Kyoto.
Hanshin Electric Railway is an operator with railway lines that directly link Kobe with Osakaʼs major
northern and southern terminals, which are Osaka-Umeda and Osaka-Namba, respectively.
These operations form a network that acts as a type of major society-supporting
infrastructure in the Kansai area.
Kobe Line46.9 km

Kyoto Line

65.4 km

Hanshin Line

43.9 km

Takarazuka Line

(Takarazuka Line, Minoh Line)(Kobe Line, Imazu Line, Itami Line, Koyo Line)

143.6 km

Kobe Rapid
2.8 kmTransit Railway Line

(Kyoto Line, Senri Line, Arashiyama Line)

Kobe Rapid
5.0 kmTransit Railway Line

Kita-senri

Osaka
International
Airport(Itami Airport)

Takarazuka

HankyuImazu
Line

Takarazuka Grand Theater

Hankyu Koyo Line
ectr

ic R

ailw

Ashiyagawa

OkamotoMikageay

Kobe Rapid Transit
Railway

AshiyaHanshin Koshien
Stadium

Kobesannomiya
Kobe-Sannomiya
Motomachi

Hanshin
Main Line

Nishidai

Kobe Airport

106.0

Population trends(1991 = 100)

Hankyu andHanshin line-side area

105.0
104.0

Osaka Bay

Source: Chiiki Keizai Soran (Local Economy Directory), publishedby Toyo Keizai, as of January 1, 2020

（%）
107.0

Kansai

103.0
102.0

Shukugawa

Imazu

95

00

20

05

20

10

20

15

20

20 (CY)

20

Kansai International
AirportThe largest airport inwestern Japan, andthe Kansai areaʼs
gateway to the worldKansai International Airport

9

Hankyu Hanshin Holdings Integrated Report 2021

Hanshin
Mukogawa
Line

Umeda

98.0
19

Daimotsu

Awaji

ShinOsaka
Juso

Tenjimbashisuji
6-chome

Osaka-Umeda
Fukushima

Hanshin Namba Line
Osaka-Namba

Station names in blue are those found in
the top twenty Most Desirable Towns toLive in shown on the opposite page.

99.0

91

Imazu
Koshien
Mukogawa

Kansai

100.0

19

Esaka
Tsukaguchi
Nishinomiya-kitaguchi

Mukogawadanchi-Mae

101.0

97.0

HankyuTakarazuka
LineAmagasaki

Shinkaichi

Population

Toyonaka

Itami

KoyoenKurakuenguchi

Hankyu Kobe Line

HankyuItami Line

HankyuSenri
LineSenri-Chuo
Ishibashi
handai-mae
Kita-Osaka Kyuko

Hyogo
Prefecture

Minoh

Kawanishi-noseguchi*See page 43 for the annual number of passengers carried.

e ElHankyuMinoh Line

(Hanshin Main Line, Hanshin Namba Line, Hanshin Mukogawa Line)

48.9 km

Kob

Osaka
Prefecture

tric

HanshinElectric Railway

28.5 kmec
Nose El
Railway

HankyuCorporation

Myokenguchi

Nissei-chuo

See pages 23‒27 for more details on
the Osaka-Umeda area.

Arashiyama

N

Kyoto
Prefecture
Kyoto-kawaramachi

KatsuraHankyuArashiyama LineAsia

The Philippines

VietnamThailand

Total unit sales overseas(including those of business partners) (As of September 1, 2021)

Overseas markets

Total units

17

Approx. 13,160

Vietnam6

Approx. 14,150

The Philippines

5

Approx. 4,330

Indonesia

3

Approx. 3,010

Malaysia

1

Approx. 850

Total

32

Approx. 35,500

Malaysia

ProfileHankyuKyoto Line

Projects

ThailandSingapore

Indonesia
Messages fromthe Top Management

Takatsuki-shi
Overseas real estate sales business
Overseas real estate leasing business

Creating Real Value:
Our StoryJapan

Key areas in the real estate and leasing
businesses in the Tokyo metropolitan area

■ Major real estate properties
CO•MO•RE
YOTSUYA

Hankyu-Hanshin-Daiichi Hotel Group
Hotel locations (As of September 1, 2021)

Shinjuku-ku
Tokyo area
9 hotels
5 hotelsfacilities, residences,etc.

Chuo-ku

Shibuya-ku
Minato-ku

Hankyu Hanshin
Ginza Building

Creating Real Value:
The Processes

Kyoto/Osaka/
Kobe areas
12 hotels
2 hotelsOﬃces, commercial

Chiyoda-ku

Commercial facility
Directly managed hotels
Franchised hotels

Community Building That Raises the Valueof Our Operational Area
Japan has a low birthrate and an aging society, yet theSurvey of Most Desirable Towns to Live in (Kansai region)
Source: Investigation conducted by MAJOR 7 (Sumitomo Realty & Development and six
other companies) (September 30, 2021)

Ranking

StationLocation

Ranking1

Nishinomiyakitaguchi(Nishinomiya,
Hyogo Pref.)2

Osaka-Umeda/
Osaka

3

Location

11

Mikage (Hankyu)(Kobe,
Hyogo Pref.)(Kita-ku, Osaka)

12

Hommachi(Chuo-ku, Osaka)

Shukugawa(Nishinomiya,
Hyogo Pref.)13

Tennoji(Tennoji-ku,
Osaka)

4

Senri-Chuo(Toyonaka,
Osaka Pref.)14

Kita-senri(Suita,Osaka Pref.)5Okamoto(Kobe,
Hyogo Pref.)15

Karasuma Oike(Nakagyo-ku,
Kyoto)

6

Ashiya(Ashiya,Hyogo Pref.)16

Toyonaka(Toyonaka,
Osaka Pref.)7

Ashiyagawa(Ashiya,Hyogo Pref.)17

Ibaraki(Ibaraki,
Osaka Pref.)8

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

18

Kurakuenguchi(Nishinomiya,
Hyogo Pref.)9

Takarazuka(Takarazuka,
Hyogo Pref.)19

Fukushima(Fukushima-ku,
Osaka)

10

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

20

Esaka

(Suita,Osaka Pref.)Note: Of the top 20 locations, all except four (12th-ranked Hommachi Station,
13th-ranked Tennoji Station, 15th-ranked Karasuma Oike Station and17th-ranked Ibaraki Station) are line-side of Group stations.

Furthermore, of the 20 Most Desirable Towns to Live in the
Kansai region, 16 are located close to our railways.
In the JCSI,* Hankyu Corporation has achieved ﬁrst place forthe twelfth year in a row in the suburban railway category.
Takarazuka Revue, meanwhile, reached three consecutive
years (FY2017‒FY2019) at number one; for ﬁscal 2019, it
came ﬁrst for the total annual ranking out of 422 companies
and brands in 36 industries.
Company/
brand

FY2019 survey

FY2020 survey

FY2021 survey

HankyuCorporation

1st (out of 23)

1st (out of 23)

1st (out of 23)

Hanshin Electric
Railway

6th (out of 23)

6th (out of 23)

7th (out of 23)

Entertainment

Takarazuka
Revue

1st (out of 6)

2nd (out of 6)

Canceled

TravelHankyu Travel
International

6th (out of 12)

2nd (out of 12)

Canceled

Industry
Suburbanrailway

Financial Section andCorporate Data

StationCreating Real Value:
The Foundations

population in our operational area is steadily increasing.

*Japanese Customer Satisfaction Index
This survey is Japanʼs largest survey of customer satisfaction
and is conducted by the Japan Productivity Centerʼs Service
Productivity & Innovation for Growth. The survey uses
statistical methods to analyze answers from more than
130,000 respondents to evaluate companies and brands.

Hankyu Hanshin Holdings Integrated Report 2021

10

Profile

Financial Highlights
Key Financial Indicators (Graphs)
Revenues from operations

Operating income and operating income margin(¥ billion)
1,000(¥ billion)
120

800

736.8

760.3

791.4

104.1

762.7

600

105.2

14.1

400

95.2

14.5

80

568.9

（%）
21

114.9

14

12.5

13.8

7

40

200
0

2.1

0
2017

2018

2019

2020

2021

2017

(FY)

Operating income

2018

2019

2020

(FY)

Operating income margin (right axis)

EBITDANet income attributable to owners of the parent and ROE(¥ billion)200(¥ billion)
80

150

159.3

160.8

171.4

60

154.1

71.3

66.4

9.4

40

60.3

50

（%）
12

65.5

8.2

2017

2018

2019

2020

2021

0

-20

-3

-4.1
2017

2018

2019

2020

Net income attributable to owners of the parent

3

2.35
4.3

2.40

2.47

4.4

2.49

4.5

2.62

3.6

1
0

-0.3

（%）
6

(¥ billion)
1,200

4

900

2

600

0

300

-2
2017
Total assets

2018

2019

2020

2021

ROA (right axis)

(FY)

899.5

866.8

877.1

903.5

17.6

(Times)
20
15
10

5.6

5.4

1.1
2017

1.0

1.0
2018

5.9

5.1

2019

1.0
2020

5
1.2
2021

0
(FY)

Interest-bearing debt
D/E ratio (right axis)

Interest-bearing debt/EBITDA ratio (right axis)

Returns to shareholders

Cash flows(¥ billion)
150

115.6

100

0

2021

-6

ROE (right axis)

1,063.00(FY)*ROA = Ordinary income/Average total assets at beginning and end of the period

50

-36.7

Interest-bearing debt, D/E ratio, and interest-bearing debt/EBITDA ratio(¥ trillion)

2

3

0

(FY)

Total assets and ROA

6

6.1

-40

0

9

54.9

7.6

20

100

30.8

-50

-84.8

-100

135.8

126.0

123.1

47.5

-5.4
-88.4

2017

2018

-116.2-128.52019

Net cash provided by operating activities(¥ billion)
25

(¥)
100

20

80

15

9.9

-150
2020

-32.5
-102.2-134.7(FY)
2021

Net cash used in investing activities

Free cash flow

11

0

0.4

2021

Hankyu Hanshin Holdings Integrated Report 2021

10
5

10.0

9.1

8.8

35

9.8

40

60

4.3
40

9.9

9.9

2018

2019

50

50

40

12.2

12.2

20

2020

2021

(FY)

0

0
2017
Acquired treasury stock

Total annual dividend

Annual dividend per share (right axis)

Non-Financial Highlights
Environmental Factors

CO2 emissions volumes and energy consumption on crude
oil-conversion basis（t-CO2）800,000
600,000

612,233

595,711516,372

200,000

434,429（kl）
800,000（t-CO2）280,000

600,000

210,000

369,646 400,000

140,000

200,000

70,00000296,116

288,732

282,735

252,828

2017

2018

2019

2020

2021

0
Urban transportation
Other

TravelEnergy consumption on crude oil-conversion basis (right axis)

Social Factors

0

3.7
2017

5.8
Hankyu Hanshin

2018

2.3
4.5

Hankyu Hanshin

Safety-related capital investment2019

14.4 0.7

12.6 0.6

2

3.5

0

4.8
Hankyu Hanshin

2020

300,000

2018

2019

2020

2021

(FY)

Hanshin Electric Railway

44.0

47.8

45.3

44.5

Hankyu Hanshin

2021

40

Note: The total length of lines operated is 143.6 km for Hankyu Corporation and 48.9 km
for Hanshin Electric Railway.

4.5

4.0

30

4.7

4.5

20
10
0

2018

(FY)

Other capital investment

（%）
50

2019

2020

2021

(FY)

Percentage of women in management positions
Percentage of women among new hires (right axis)
Hankyu Hanshin Holdings and its six core companies are actively pursuing fairworking environments where employees are able to fulfill their roles to the bestof their abilities regardless of gender, through the active continued hiring of
female employees. In fiscal 2021, the percentage of women in management
positions was 4.7%, and females made up 44.5% of new hires.

Governance Factors

Rate of attendance of outside officers at meetings ofthe Board of Directors, the Board of Company Auditors, and
the Audit and Supervisory Committee

Percentage of outside directors

（%）

100

20

45.5

33.3
22.2

90
80

22.2

100.0

97.2

96.0

85.0

83.3

100.0 100.0

97.0

100.0
100.0 100.0
98.0

96.7

Financial Section andCorporate Data

45.5
40

100.0

Creating Real Value:
The Foundations

As a railway operator, the Group provides a form of public infrastructure. We
therefore make giving priority to the safety of our customers a fundamental policyof management, and conduct ongoing safety-related capital investments in ourrailway operation business accordingly. However, in fiscal 2021, in view of thesubstantial impact of COVID-19, we reduced originally planned capital investment
and reviewed the timing of investment while giving consideration to safety. As aresult, safety-related capital investments totaled ¥12.6 billion at Hankyu
Corporation and ¥3.5 billion at Hanshin Electric Railway. These investments wereprimarily used for the construction of new trains and renovation of existing ones,
as well as construction to further improve our stations, and seismic reinforcementof elevated tracks.

（%）
60

Creating Real Value:
The Processes

Hankyu Hanshin

13.1

14.1

497,128

6

6.4

4

1.4

519,546

Creating Real Value:
Our Story5

12.7 0.9

528,237(Target: Hankyu Hanshin Holdings and its six core companies)

810600,000

In fiscal 2021, CO2 emissions associated with railway operation business energy
consumption by Hankyu Corporation and Hanshin Electric Railway were down 9%
year on year to 157,523 t-CO2. Energy consumption plunged mainly because of
the effect of Hankyu Corporationʼs updating to energy-efficient rolling stock,coupled with a fewer number of passengers of both companies amid the
pandemic that decreased the weight of train in operation compared topre-COVID times.

20
4.7

157,523

Energy consumption (right axis)

（%）
10

4.3

543,2810
2017(¥ billion)25

4.7

900,000

Percentage of women in management positions and women among new hires

Capital investment in railway operation business

3.3

551,723

Hankyu Corporation

International transportation

In fiscal 2021, CO2 emissions were down 15% year on year to 369,646 t-CO2, due
to the significant stagnation of socioeconomic activities following the state of
emergency declared twice amid the COVID-19 pandemic. Energy consumption
on a crude oil conversion basis decreased 11% year on year to 252,828 kl.

15220,803

Messages fromthe Top Management

Hotels(FY)Entertainment

Real estate（kwh）
1,200,000

267,837

173,528

302,612

Information and communication technology

273,655

Profile400,000

CO2 emissions/railway operation business energy consumption
by Hankyu Corporation and Hanshin Electric Railway

92.9

80.0

0

0
2017

2018

2019

2020

2021

(As of the conclusion of the General Meetingof Shareholders for each year)

Note: As a result of approval at the General Meeting of Shareholders held in June 2020,
the Company became a company with an audit and supervisory committee.

In order to strengthen its supervision and oversight and improve the quality of its
decision making, the Company has appointed 11 directors, of which 5 are
independent directors (3 males and 2 females), bringing the percentage ofoutside directors to 45.5%.

2017

2018

2019

2020

2021

(FY)

Outside directors, the Board of Directors
Outside auditors, the Board of Directors
Outside auditors, the Board of Company Auditors
Outside directors, the Audit and Supervisory Committee
Note: With the approval obtained at the Ordinary General Meeting of Shareholders heldin June 2020, Hankyu Hanshin Holdings became a company with an audit andsupervisory committee. Fiscal 2021 results represent the attendance status to themeetings of the Board of Company Auditors before the transition and to the Audit
and Supervisory Committee after the transition.

Hankyu Hanshin Holdings Integrated Report 2021

12

Messages from the Top Management

Message from the Chairman

Kazuo Sumi
Chairman and Representative Director,
Group Chief Executive Officer

We shall respond appropriately to changes insociety and aim for sustainable growth to help
build a sustainable society.
Boosting Corporate Value Sustainably
Within the Context of a Changing Society
Our aim as a corporate group is to achieve sustainable

Management Vision for 2025. Through this effort, we aim toclearly envision what this Group should look like in 2030,
and will aim to boost corporate value sustainably within thecontext of a changing society.

growth in a society that is continually undergoing change. In
2017, we announced the Hankyu Hanshin Holdings Group
Long-Term Management Vision for 2025, and have since
been carrying out policies in line with that strategic vision.
In the fourth quarter of fiscal 2020, however, theFurther Implementing Sustainable
Management Toward the Realization ofa Sustainable Society

emergence of the COVID-19 virus caused a sudden change

13

in the business environment, significantly impacting many of

To show how we plan to contribute to the realization of a

our businesses. That impact continues to be felt in fiscal

sustainable society, we announced the Hankyu Hanshin

2022, but there has been a certain degree of recovery in

Holdings Group Sustainability Declaration in May 2020.

earnings across our businesses recently, so the full-year

We have since been putting into action specific measuresresults for fiscal 2022 are expected to be better than for the

aimed at meeting the non-financial KPIs for priority issues

previous year.

presented in the declaration. Additionally, in May 2021 we

In such circumstances, we must of course work toward aannounced our intention to endorse the Task Force on

full business recovery, but at the same time it is also essential

Climate-related Financial Disclosures (TCFD) and the United

to respond properly to changes in the social and economic

Nations Global Compact.

environment brought on by the pandemic. Toward that end,

Part of our efforts include TCFD compliance measures.

we have started working on an update to the Long-Term

Adhering to that disclosure framework, we outline in thisHankyu Hanshin Holdings Integrated Report 2021

integrated report our governance, risk management, andoccupied by the Hotel new Hankyu Osaka. In the Senri-Chuo

metrics and targets. To plan our Group strategy, we firstarea, —a redevelopment project is presently in progress in

identified the risks and opportunities in Urban Transportation

front of Senri-Chuo Station, adjacent to the Senri Hankyu

and Real Estate, business areas within the Group that will

Hotel, so we will watch how that develops as we study plans

have a considerable impact on climate change. Going forward,

for developing the hotel site land.
In these ways, our Group has sought to build thriving

trial calculations on financial effects, and based on the findings

districts since our founding, and we realize it is a vital mission

will incorporate measures into our business strategy to further

to pass the baton on to subsequent generations and continue

improve efforts to mitigate climate change.

to contribute to local development and social progress—

Profilewe will do further analyses on these topics, which will include

primarily through efforts to create vibrant areas along ourrailway lines.

One of the six priority issues in our sustainability declaration

Messages fromthe Top Management

Passing the Baton of Community-Building*The Most Desirable Neighborhood survey is a questionnaire of prospective
condominium buyers conducted by the “Major 7” condominium builders(Sumitomo Realty & Development, Daikyo, Tokyu Land, Tokyo Tatemono,
Nomura Real Estate Development, Mitsui Fudosan Residential, andMitsubishi Estate Residence).

is to build “thriving communities.” For over 100 years since
our founding, the Group has focused on good town planningalong our railway lines. Ichizo Kobayashi, the founder ofHankyu Corporation, carried out development of residential

Creating Real Value:
Our Story

areas and other projects starting in the company’s earliest

Building a Corporate Culture That
Empowers Each of Our Employees

phase. Among these efforts, he worked to develop safe,
secure town areas by setting up street lamps that ran on

Another of our Group’s six priority issues stated in thesurplus power from the railway. Such creative thinking, whichsustainability declaration is “empowering individuals.” This isextended to education and culture, continues today in the

more important than anything, and to assist in this effort, weGroup’s efforts to build thriving communities.

have set the “continuous raising of employee satisfaction” asa non-financial KPI. Raising employee satisfaction is the baseupon which we will be able to meet the expectations of ourdevastated in the Great Hanshin-Awaji Earthquake of 1995.

many stakeholders. Satisfaction also boosts employee

Following the earthquake, a public-private partnership was

motivation and our organizational strength, which in turnestablished to rebuild the train station and vicinity. Amidst

allows us to provide high-quality services that align with thethat rebuilding, Hankyu Corporation also planned Hankyu

needs of customers. Steady accomplishments then lead to

Nishinomiya Gardens, a large-scale commercial facility thathigher customer satisfaction, which translates into improved

openedbusiness results and higher corporate value.

in

2008.

We

also

actively

encouraged

theTaking this approach, we have long strived to create aworked to improve the attractiveness and convenience ofworkplace culture that enables our employees to work

the area. Our Group also built many high-quality residenceshappily and energetically. Going forward as well, we willin the vicinity and has been working to raise the value of thepromote employee diversity and health, creating a corporate

entire area on an ongoing basis. Thanks to such efforts, theculture that values our employees’ individuality and allows

area around the station was rated number one in the Most

their unique abilities to flourish.

Creating Real Value:
The Foundations

establishment of educational and culture facilities andCreating Real Value:
The Processes

One example is the area around Hankyu Nishinomiyakitaguchi Station (Nishinomiya, Hyogo Pref.), which was

Desirable Neighborhood in Kansai survey 2021* for thesixth year in a row.

With the ongoing COVID-19 situation, we expect thebusiness climate to remain difficult, but we will pursue our

locations—Osaka-Umeda and Senri-Chuo—with two hotels

Group management philosophy as one, building a strong(Hotel new Hankyu Osaka and Senri Hankyu Hotel). In thetrust with customers and local communities as we set ournear future, however, due to a complete restructuring of thesights on sustainable growth for the Group overall.

Financial Section andCorporate Data

In addition, the Group has two important businesshotel business, the hotels will be closed and taken down.
We will be looking to redevelop the two sites to raise theirvalue and build thriving communities in the two areas. In the
Osaka-Umeda area, construction will be completed next
spring on the Umeda 1-1 Project, and we will turn to ournext major project—intensive land utilization of the site now

Hankyu Hanshin Holdings Integrated Report 2021

14

Messages from the Top Management

Message from the President

Takehiro Sugiyama
President and Representative Director

To build sustainable corporate value in
the New Normal
Fiscal 2021 Results
In fiscal 2021, as COVID-19 spread across Japan, peoplebusinesses have been considerably affected by the pandemic.

were asked to voluntarily refrain from going out and traveling.

We made efforts to cut costs, constrain investment, andSevere restrictions on social and economic activities weretake other actions that resulted in our operating income

imposed, including a national state of emergency twice being

managing to stay in the black, but we incurred a loss in net

declared. The situation has been extremely difficult all year.

income attributable to owners of the parent due to such

As a corporate group we have been serious about taking

factors as special losses caused by the pandemic and losses

measures to stop the spread of the virus and worked hard to

related to the restructuring of the hotel business.

ensure business continuity, but most of the Group’s
FY2021 results
Revenues from operations

FY2020 results¥568.9 billion¥762.7 billion

YoY–¥193.8 billion

Operating income¥2.1 billion¥95.2 billion–¥93.1 billion

Ordinary income–¥7.6 billion¥88.8 billion–¥96.4 billion

Net income attributable to ownersof the parent–¥36.7 billion¥54.9 billion–¥91.6 billion

Our Direction for Fiscal 2022

15

About the Medium-Term Management Plan

formulated a Medium-Term Management Plan for the firstTo realize the Hankyu Hanshin Holdings Group Long-Termfour years (fiscal 2019–2022), during which time we haveManagement Vision for 2025, established in 2017, webeen promoting measures in line with the Vision that aim toHankyu Hanshin Holdings Integrated Report 2021

achieve stable operating income of ¥110 billion in thecosts into variable costs* in order to strengthen our

medium-term fiscal year of 2022.

profitability structure in each Group business.
With respect to growth investments, large-scale projects

the outbreak of COVID-19. However, the business climatethat are currently in progress will be continued, but newchanged significantly with the pandemic, and it soon became

projects will be subject to careful review in terms of purpose,clear that we had no chance of meeting our income target ofbusiness viability, risk, etc. We will continue to constrain¥110 billion.

maintenance and renewal investment to minimize theBased on this situation, for fiscal 2022 we have reset the
span of years covered by our Medium-Term Management
Plan and lower our income target from ¥110 billion, following
policy measures through the two tasks outlined below.

ProfileThe Group’s results were largely in line with the Plan up to

worsening of the Group’s financial standing.
*Cutting fixed costs and turning fixed costs into variable costs: operational
streamlining and labor-saving, raising productivity to contain costs,
reallocating resources, etc.

■ Step 2: Move forward with the fundamental restructuring

1of the hotel business

Setting a Crisis Recovery Phase

Messages fromthe Top Management

Task

As part of step one, taking into consideration that the hotel

For the first task, we are setting a Crisis Recovery Phase as abusiness had long been facing a tough business climate, thentime frame within which we can put a wholesale effort into

was severely impacted by the COVID-19 pandemic, we plan

recovering as quickly as possible from the effects of theto carry out a fundamental restructuring of the business

COVID-19 pandemic.

covering all three components—operational, personnel, andfinancial.
Specifically, we will take measures to restore sales to pre-In this phase of policy measures, we will devote energy topandemic levels and improve income while closing hotels

restoring profits in our existing businesses and quickly

that are unprofitable and cutting fixed costs to strengthen

establish a plan for cutting fixed costs and turning fixed

our business structure, as shown in the table below.

Creating Real Value:
Our Story■ Step 1: Take measures to strengthen our business structure

Description of Structural Reforms in the Hotel Business●

Creating Real Value:
The Processes(1) Operational
In the hotel business, we decided some time ago that any new hotels we open should be no-frills hotels, andwe put the existing full-service hotels under review in terms of the business model and use of assets, with a viewto ensuring the proﬁtability of the real estate.
●

We will focus resources on no-frills hotels (which have good proﬁt potential) and a selected number offull-service hotels. Conversely, we will close hotels that are unproﬁtable, underperforming, or dilapidated.
Seven hotels will be closed, as shown below.
Dai-ichi Hotel Annex, Kichijoji Dai-ichi Hotel, remm Kagoshima*1,

Creating Real Value:
The Foundations

End of FY2022

Umeda OS hotel*2*1 By the end of FY2022, remm Kagoshima will cease to be a directly managed hotel andbecome a chain hotel managed by the propertyʼs owner.
*2 Umeda OS hotel is managed under contract by Hankyu Hanshin Hotels

End of FY2023

Daiichi Hotel Tokyo Seafort

Around the end of FY2025

Hotel new Hankyu Osaka

Around the end of FY2026

Senri Hankyu Hotel
Financial Section andCorporate Data

(2) Personnel●

As well as downsizing the workforce as part of the restructuring program (reallocating resources), we will run
a business process inventory to see where we could improve productivity. In this way, we hope to achieve
enable leaner operation. By hiring fewer people, we will allow the workforce to shrink naturally.

(3) Financial●

We are prepared to record impairment loss to reﬂect the diminished proﬁtability of assets amid the pandemic.

Hankyu Hanshin Holdings Integrated Report 2021

16

Messages from the Top Management

Task

2

essential to our success, so will we take quick action based

Adapting to the New Normal

on specific policies to boost our earning capacity and

For the second task, we will take the steps necessary to

streamline operations, employing digital technologies in theadapt steadily to business climate changes accelerated byprocess.

the pandemic that have ushered in the New Normal.

To boost our earning capacity, we will work to provide
new products and services based on people’s new desire to■ Step 1: Recognize changes in the business environment
brought on by COVID-19

avoid congested spaces and close contact with others asdigital technologies advance further. We will also utilize

Well prior to the pandemic, most of the businesses in ourcustomer data in digital marketing to stimulate new demand.

Group relied on the movement of customers and in-person

Particularly with regard to customer data, as the Group

contact (from urban transportation to shopping at commercial

provides people with a wide range of urban lifestyle-related

facilities, baseball game attendance, theatergoing, travel,

products and services, we have data from every businesshotel stays, etc.). We competed through products andthat can be collated into big data for use by the Group as aservices in that realm. But since the emergence of COVID-19,

whole going forward. We plan to use such customer data topeople have had fewer opportunities for movement, andmore effective target customers with marketing.

interactions through digital media have been on the rise,

In terms of streamlining operations, it will be vital toreplacing a real-world physical presence. This and otherincrease individual productivity through the use of digitaldevelopments have quickly changed people’s lifestyles andtechnologies such as robots and IoT at each Group site, soways of doing business. These changes are on the way to

we will accelerate efforts toward that end.

becoming firmly established in today’s social environment,
so it is likely that as the New Normal become established,
they will have a considerable effect on the running of most of
our Group businesses.
■ Step 2: Adapt to the New Normal
For the Group to build toward sustainable growth, we must
develop a suitable response to the new situation that has
emerged. A DX (digital transformation) initiative will beFirst Quarter Results for Fiscal 2022 andOutlook for the Full Fiscal Year
While the effects of the COVID-19 pandemic still remain

Specifically, in fiscal 2022 we anticipate ¥30 billion insignificant, the first quarter results for fiscal 2022 saw some

operating income, an increase of ¥27.9 billion over fiscal

degree of recovery from the previous year in each severely

2021. However, as shown in the graphic illustration on theaffected business, with an attendant increase in revenue andright-hand side of the page, when COVID-19-related losses

income. Factoring the first-quarter results into the outlook for(extraordinary losses) are taken into account, the actual

the full fiscal year, we anticipate a further recovery from theprofit increase from FY2021 to FY2022 will be ¥41.2 billion,

second quarter on—an improvement over the same period inwith a net income attributable to owners of the parent offiscal 2021—shown in the table below.

¥12 billion, back in the black.
FY2022 forecast(As of July 30, 2021)

17

FY2021 results

YoY

Revenues from operations¥770 billion¥568.9 billion+¥201.1 billion

Operating income¥30 billion¥2.1 billion+¥27.9 billion

Ordinary income¥23 billion–¥7.6 billion+¥30.6 billion

Net income attributable to ownersof the parent¥12 billion–¥36.7 billion+¥48.7 billion

Hankyu Hanshin Holdings Integrated Report 2021

Outlook for Operating Income
COVID-19- related
losses

30.0

-6.1

23.9
Profile+¥27.9 billion+¥41.2 billion

2.1

-17.3

-19.4

FY2021

Urban Transportation +¥17.4 billion,
Real Estate +¥4.2 billion,
Entertainment +¥12.0 billion,
Travel +¥2.5 billion,
Hotels +¥5.3 billion

Creating Real Value:
Our Story

Shareholder Return

FY2022Messages fromthe Top Management

COVID-19- related
lossesOur response must be focused on adapting to changes insocietal behavior brought on by the pandemic, which
includes an expansion of online consumption and thewidespread acceptance of remote work arrangements. It

worst-case scenario was avoided, wherein the COVID-19

must also include measures to achieve a digital transformation

situation would have remained as bad as it was in April andas the world becomes increasingly driven by data. There has

May 2020, calling for a national state of emergency) a stablealso been a genuine change taking place in working styles

ratio could be maintained—¥50 per share for the full-year

alongside the society-wide pursuit of carbon neutral practices

dividend payout as set in fiscal 2020.

and other SDGs (sustainable development goals), so it is vital

Since we anticipate a certain degree of recovery, ¥50 per
share is again likely to be the full-year dividend payout infiscal 2022.

Creating Real Value:
The Processes

With regard to shareholder return, in fiscal 2021 (because athat we shift our priorities toward such matters.
In the area of finance, as we work to maintain financial
soundness it becomes vital to increase capital efficiency
more than ever. With such concerns in mind, we will proceed

Update to Our Long-Term Vision with aView of Changes in the Business Climate

to update the Group’s Long-Term Vision with the goal of

The Group’s Long-Term Management Vision for 2025,

some time to come, but we will first concentrate our energies

formulated in 2017 to indicate how we wanted to develop

on achieving a quick recovery from the effects of theover the long term, already anticipates a declining population,

COVID-19 pandemic, then steadily carry out measures fromadvancing technological innovation, and progressive changes

the standpoint of adapting to the New Normal. These efforts

in lifestyles and business styles. I believe the direction for theare aimed at achieving sustainable growth for the Group. In

Group stated in the Long-Term Vision does not require any

these matters I thank you for your understanding andmajor revisions. However, as described earlier, the pandemic

continuing support.

Creating Real Value:
The Foundations

announcing our Vision for 2030 in the spring of 2022.
The business climate is likely to continue to be difficult for

Financial Section andCorporate Data

has significantly accelerated the pace of change, so we havedecided to update the Long-Term Vision at this time torespond fittingly to the changes in the business climate thathave taken place since it was first written.

Hankyu Hanshin Holdings Integrated Report 2021

18

Creating Real Value: Our Story

Value Creation Process of Hankyu Hanshin Holdings
At the Hankyu Hanshin Holdings Group, we hold a diverse range of management resources, which we deploy in order to further
our strategy of value creation so as to provide value to stakeholders.

Value Creation Strategy of

Changes to Social Issues and in External Environments
Due to the COVID-19 pandemic, changes in social issues and theexternal environment have accelerated
Increasingly serious climate change(harmony with the environment)
Low birthrate, aging society,declining population (declining
resident population and working
population in communities along
our routes)
Faster ICT innovation
Changes in lifestyles and businessstyles (movement, consumer
behavior, lifestyle bases, etc.)
Increasingly multicultural symbiotic
societies (expansion of inboundtourism demand)
Increased interest in safety andsecurity
Decay of infrastructure
Requirements for diversity-conscious
management, better employment
practices, health management
Requirements for stronger
governance

Risks
Impact of extreme weather onbusiness
Impact of infectious diseases on ourbusiness model
Impact of lifestyle changes on ourbusiness model
Tight labor market, decline incustomer numbers

Opportunities
Expanded demand for low carbon,
circular transport, services withsafety and security
Expanded demand for new services
generated by lifestyle and businessstyle changes and technicalinnovation
Expanded business opportunities
throughout Japan and around theworld generated by increasingly
multicultural symbiotic societies

Management Resources
Manufactured capital

Extensive assets that can create stable revenue

Urban Transportation
Operating kilometers: Hankyu Corporation 143.6 km*
Hanshin Electric Railway 48.9 km**Includes Tier 2 railway operatorsʼ lines.
Real Estate
Leasable area: approx. 2,000,000 m² (as of the end of FY2021)
Information and Communication Technology
Number of households subscribing to cable TV: 673,000
HotelsTotal number of guestrooms: 12,644 (as of Sep. 1, 2021)

Social and relationship capital

Hankyu Hanshin Holdings Group Long-Term
Management Vision for 2025
Strategy 1

Update Long-Term
Management Vision
for 2025

Make our railway theabsolute best among the
Kansai networks.

Scheduled release of our
Vision for 2030 in spring
2022

Strategy 2
Construct a stable revenue
base in the Tokyo
metropolitan area andoverseas markets.

Update key points

Strategy 3
Strengthen competitivenessby thoroughly pursuing brand
optimization anddiﬀerentiation.

Strategy 4Make greater use of theGroupʼs collective strengthand develop new businessﬁelds.

Changes in peopleʼsbehavior resulting fromthe COVID-19
pandemic
DX initiatives in linewith the progress ofdigitalization
Full-scale reforms toworkstyles
Promotion of eﬀorts
toward carbon
neutrality and other
SDGs initiatives, etc.

Adapting to the New Normal

p21

Services based on trust and brand strength

Real Estate
Number of condominium units sold in Japan: 867 in FY2021, 1,516 in FY2020
Entertainment
Total attendance at Hanshin Tigers home games: 518,000 in the 2020 season,
3,091,000 in the 2019 season
Annual total attendance at Takarazuka Revue: 1,565,000 in FY2021, 2,991,000
in FY2020
TravelTotal domestic travel billings: ¥55.9 billion in FY2021, ¥128.6 billion in FY2020
Total international travel billings: ¥2.5 billion in FY2021, ¥203.3 billion in FY2020
International Transportation
Number of domestic bases: 50 (as of Sep. 1, 2021)
Number of overseas bases: 134 (as of Sep. 1, 2021)

Intellectual capital

Varied expertise and brand power accumulated overmore than 100 years of history

Human capital

Diverse workforce with the courage to try new things

Sustainability Declaration

p2

General Principles

Create a future grounded in “Safety andComfort,” and a future colored by “Dreams
and Excitement.”
For over a hundred years, we have sought tocultivate communities and enrich lives.
Leveraging this experience, we commit ourselves toaddressing social and environmental challenges andworking toward a sustainable future, one that oﬀers a
fulﬁlling, joyful life to all and inspires the next
generation to dream with hope.

Consolidated Group workforce: 23,192 (as of the end of FY2021)

Financial capital

Stable ﬁnancial foundation

Equity ratio: 33.1%
D/E ratio: 1.2
Bond rating: AA‒ (JCR), A+ (R&I) (as of Sep. 1, 2021)

Natural capital

良好な沿線環境
Advantageous operational area environment

Centered on the warm climate of the Osaka Plain, the richly verdantenvironment of our operational area is ideally suited to people and industry
Note: Figures are for FY2021 unless otherwise noted.

19

Hankyu Hanshin Holdings Integrated Report 2021

Group Management Philosophyp1

Resolution ofSocial Issues

Urban Transportation

Sustainably
enhance
corporate
value

p42

p45

Employees

p48

Travelp53

International Transportation

Environmental
protection

Robustgovernancep33

MissionWhat we try to achieve
By delivering “Safety and Comfort” and “Dreams andExcitement,” we create satisfaction among our customers andcontribute to society.

Partners

Create a future
grounded in “Safety
and Comfort,” and afuture colored by“Dreams and Excitement.”
We commit ourselves to working
toward a sustainable future, onethat oﬀers a fulﬁlling, joyful life
to all and inspires the next
generation to dream withhope.

Operational Area
Growth̶Past,
Present, and Future

Sustainability
Declaration-Related
Eﬀortsp23

p35

Hankyu Hanshin Holdings Integrated Report 2021

Financial Section andCorporate Data

TCFD
Empowering
individuals

Shareholders

Creating Real Value:
The Foundations

Life designs
for tomorrow

Enhance economic value

Thriving
communities

sustainable society

Creating Real Value:
The Processesp57

Six priority issues (materiality matrix)

Safe, reliableinfrastructure

Contributing to ap55

Enhance social value

Hotelsp51

Communities

Creating Real Value:
Our Story

Information andCommunication Technology

Enhance daily life (customer)
valueEntertainment

Customers
Messages fromthe Top Management

Real Estate

Values Provided to Stakeholders

ProfileHankyu Hanshin Holdings

20Creating Real Value: Our Story

Adapting to the New Normal
Changes in the business environment triggered by the COVID-19 pandemic (the coming of the New Normal)
The pandemic has triggered rapid changes in our lifestyles. Going forward, even if the effects of the pandemic once die down andeconomic activities in Japan and overseas recover to a considerable extent, socioeconomic activities will never fully return to theirpre-pandemic state. Since the changes in lifestyles will give rise to needs for new ways of living, the business environment surrounding
the Group is expected to undergo major changes (the coming of the New Normal).

The New Normal: Lifestyle changes and new lifestyle needs

Lifestyle changes

New lifestyle needs

Changes in population behavior
Fewer unnecessary outings

More dispersed workforce,dispersed learning

More even and diverse
travel demandMore options for where to live

Changes in corporate sector
More workplace ﬂexibility

More BCP

Emphasis on quality of life
More emphasis on health and safety,
more health consciousness

Rising desire for self-expression andactive role in society

Rising desire for communication in reaction to the shift to virtual

Remote work*
Accelerated digitalization
More online consumptionMore emphasis on SDGs
Better private spaces
Growing demand for real-life(but safe) experiences*Working from home, digital nomadism, working at a satellite office, workation, etc.

Direction of adapting to the New Normal
In order to achieve sustainable growth even in the business environment described above, we need to appropriately adapt to the
New Normal and this definitely requires DX initiatives. To this end, we will strive to improve profitability and increase operational
efficiency while utilizing digital technology as follows.

Direction of utilizing digital technology

Improve
proﬁtability

Launch new products and services considering peopleʼs new attitude toward contactlesscommerce and avoiding crowded spaces, as well as the progress of digitalization

Increase
operationaleﬃciency

Increase operational eﬃciency (productivity) by leveraging robots, IoT and other new
technologies

Under the name of the Hankyu Hanshin DX Project, further accelerate plans to integrate it into the
updated long-term vision.

▶Strengthening digital marketing by integrating data with groupwide ID

Pick Up

The Group holds data on peopleʼs diverse activities through provision of
products and services used in every aspect of peopleʼs urban life. Goingforward, we will integrate these with a groupwide ID HH cross ID andmake use of it for the entire Group to realize eﬀective marketing.

Opened within the Company
through industry-academia
collaboration with the
University of Tokyo(April 2021)

Data Analysis Lab(For details, see the next page.)

21

Hankyu Hanshin Holdings Integrated Report 2021

Pick Up

Data Analysis Lab

Creating groupwide innovation through digitalmarketing and contributing to making smart
Hankyu Hanshin service area and smart society
In April 2021, we established the Data Analysis Lab within our
Company

throughindustry-academia

collaboration

with

the

(CRM). We asked Associate Professor Takahiko Kusakabe of the
University of Tokyo, who supervises all of the lab’s projects as Data
Analysis Director, about the mission and direction of the lab.

Associate Professor (Dr. Eng.)
Center for Spatial Information Science, the University of Tokyo

ProfileUniversity of Tokyo to promote customer relationship management

Takahiko Kusakabe
ProfileCompleted his engineering doctorate at Kobe University Graduate School in 2010.
Dr. Kusakabe has been in his current position since January 2021 and is engaged
in research and development in the fusion area of information technology andtransportation engineering. Since April 2021, he has been supervising all of thelab’s projects as Data Analysis Director of Hankyu Hanshin Holdings.

Associate Professor Kusakabe (hereinafter, Kusakabe) The

Kusakabe In 2006, when I was studying at Kobe University, I

mission of the Data Analysis Lab is to tackle various businessparticipated in joint research with Hankyu Corporation andchallenges assisted by data science, for example, efficiency

Hanshin Electric Railway. The research produced some

improvement using data and development of new digitalachievements but they were not sufficient to move on to thestrategies.

phase of practical implementation. In order to harness research

The Group has various data related to people’s lives inresults to solve social problems, along with having the latest

general, obtained from customer relationships such as in railway

technology, understanding the needs and problems of theoperations, real estate, entertainment, and travel. By analyzing

field is also important. At our lab, I focus on understanding andand utilizing such data, we will be able to take effective measures

meeting the field needs as much as possible by making use ofaccording to the lifestyles and potential needs of our customers,

on-site experience of the members.

Creating Real Value:
Our Story

Is there anything you are aware of when you
explore a solution?

Messages fromthe Top Management

What is the mission of the Data Analysis Lab?

which will make people’s lives more comfortable and convenient.
Creating Real Value:
The Processes

However, some of our datasets are not currently maintained
for advanced CRM. So, we would like to first accumulate data inusable form, and then organize and analyze it.

Could you be more specific aboutdata analysis and utilization?

Data Analysis Lab consists of Dr. Kusakabe and five employees

Kusakabe For example, if we look at train boarding/unboarding

What do you expect this initiative to be applied
to the future?

Creating Real Value:
The Foundations

data, we can divide customers into two groups: one of people
who did not show any significant changes in boarding/unboarding

Kusakabe Under the current situation of a declining and aging

showed a steep decline. For the former, we will continue topopulation throughout Japan, the revitalization of the region isprovide safe transportation services and assure their continued

directly reliant on the Group’s measures to increase the value of

use with a sense of security. Meanwhile, regarding the latter, we

the areas along our railway lines. So it is no exaggeration to say

will analyze their boarding/unboarding data by combining withthat the Group is the leader in building the future of the entire

data on other businesses, such as purchasing behavior, to find aregion. The Group’s promoting CRM to keep pace with the New

solution that will better meet the needs of customers andNormal while leveraging the lab’s outcomes will enable
sustainable growth, eventually leading to the development of thestimulate transportation demand.
Work process at Data Analysis Lab(1) Understanding thecurrent situation andidentifying problems(2) Target setting

Promote understandingof the current situationand identify problems
through discussions
with operating divisions
and data analysis.

Set a target aim(hypothesis) usingﬁndings from Step
(1) and propose asolution based on
the data.

Financial Section andCorporate Datafrequency even during the pandemic, and the other of those who(3) Implementation andveriﬁcation of
measures
Implement measures
based on the
hypothesis, verify
eﬀects throughdata analysis,
and develop
better measures.

entire community. I think this initiative is extremely productive
for myself and other researchers as well, because it has thepotential to be applied to urban smartization in various ways byaccumulating and utilizing big data on people’s lives in general. I
believe that this industry-academia collaboration will not only
lead to the development of the Hankyu Hanshin Holdings Group,
but also to the attainment of a sustainable society.

Hankyu Hanshin Holdings Integrated Report 2021

22

Creating Real Value: Our Story

Special Feature

Operational Area Growth̶Past, Present, and Future

Osaka-Umeda Area Now

Development trajectory

Future potential

Osaka-Umeda is the Greater Kyoto-Osaka-Kobe
Regionʼs major transport hub. In the past, the area
prospered primarily for its merchant culture andthere were comparatively few oﬃces. In recent
years, with the development of facilities like theUmeda Hankyu Building and GRAND FRONTOSAKA, both of which we are involved in, there has
been an equivalent supply of sophisticated oﬃces.
Now, there are seven railway stations as well asoﬃces,

commercial

facilities,

hotels,ﬁnancial

institutions, legal oﬃces and more concentrated inacompact

area

measuring

less

than

Aerial photo of the Osaka-Umeda area

twokilometers in diameter. It is consistently praised as

Umekita Phase II Development Project

an excellent business environment.

Private-sector zone speciﬁcation

We will continue to dig down into the potential

Site areathat the Osaka-Umeda area̶our most important

North zone: approx. 15,720 m²
South zone: approx. 30,430 m²

Urban open space speciﬁcation

base̶has to oﬀer and work to maximize its value.

Site area

Approx. 45,000 m²

Number of passengers per day:approx.

Initialopeningscheduled
for summer
2024

2.5 million

Hankyu Hanshin Holdings Group: Hankyu
Osaka-umeda Station, Hanshin Osaka-Umeda Station
Other railway companies: JR Osaka Station, Osaka
Metro Umeda Station, etc.

Kobe

See page 27.

Kyoto

HERBIS OSAKAThe Ritz-Carlton Osaka

Osaka-Umeda
Approx. 2.5 million users per day

Kansai International
AirportHERBIS ENT

Oﬃces, commercial facilities,
theaterOﬃces, hotel, commercial
facilities, multipurpose halls

Tokyo, Nagoya,Fukuoka■ Oﬃce ﬂoor space by major area (as of March 31, 2021)（m2）■ Osaka-Umeda area oﬃce ﬂoor space（m2）

4,000,000

2,500,000
2,000,000

3,000,000

1,500,000

2,000,000

1,000,000

1,000,000

500,000

00
Umeda(Osaka)Yodoyabashi/ Shinsaibashi/
Namba
Hommachi(Osaka)(Osaka)Shin-Osaka(Osaka)Shinjuku(Tokyo)Shibuya(Tokyo)March 2002

March 2012

March 2021

Source: Monthly surveys on Osakaʼs and Tokyoʼs (Tokyoʼs 5 central districts) latest oﬃce market conditions (published by Miki Shoji Co., Ltd.)

23

Hankyu Hanshin Holdings Integrated Report 2021

To Juso/Shin-Osaka(planned NaniwasujiConnection Line andShin-Osaka
Connection Line)GRAND FRONT OSAKA

Oﬃces, commercial facilities, hotel (InterContinental Osaka),
Knowledge Capital, etc.
Number of shops

See page 27.

Size

Approx. 260

Umekita initial development area
ProfileApprox. 70,000 m²

Messages fromthe Top Management

North Bldg.

Applause Tower
Hotel Hankyu
International

Hankyu Sanban Gai
Shopping Center

ta.

(U

NU chayamachi PLUS

eda S

NU chayamachi

Osaka MetrCommercial facilities

a Sta

.

St
a
ed

med

m
i-U

Hotel Hankyu RESPIRE OSAKA

hi-U

sh
Ni

Number of guest rooms

igas

ro
et

1,030

sh

hi

St

a.

DIAMOR OSAKA(Underground facility)

Creating Real Value:
The Foundations

inc

ka M

ta

Osa

Ki

etro
H

M
Os
ak
a

JR

Creating Real Value:
The Processesa.

Hanshin
Osaka-Umeda
Sta.

Commercial facilities

Hankyu Terminal Bldg.

o Um

JR Osaka Station

Hotel, commercial
facilities, oﬃces,
theaters, etc.

HankyuOsaka-umeda
Sta.

Creating Real Value:
Our Storydle South Bldg.
南館
dun
io cheta : s 3)tS n
2ka tio 20
sa sta ing
Or
JR und sp
ro penHotel new Hankyu Osaka
g
er o
nd to

Umeda Hankyu Bldg.*(Hankyu Umeda Main Store)Oﬃces, department store, etc.
Total ﬂoor space

Our wholly owned and shared investment properties, etc.

Approx. 254,000 m²
Oﬃce space (incl. Sky Lobby, etc.):
approx. 103,000 m²

Umeda 1-1 Project
Osaka Umeda Twin Towers South(Hanshin Umeda Main Store)

Total ﬂoor space
Approx. 260,000 m²

Financial Section andCorporate DataOﬃces, department store,
event halls, etc.

Building details

41 ﬂoors above ground;
2 ﬂoors below groundOﬃce space: 25 ﬂoors (17F‒41F)

Complete
openingscheduled
for spring
2022*Name change to Osaka Umeda Twin Towers North scheduled forspring 2022

Building details

38 ﬂoors above ground;
3 ﬂoors below groundSee pages 25‒26.

Hankyu Hanshin Holdings Integrated Report 2021

24

Creating Real Value: Our Story
SpecialFeatureOperational Area Growth̶Past, Present, and Future

PROJECT
Project
Progress

01

Umeda 1-1 Project(Building Name: Osaka Umeda Twin Towers South)

The Dai Hanshin Building, home to a Hanshin department store (Hanshin Umeda
Main Store), and the New Hankyu Building, which were separated only by anarrow road, are being rebuilt as one building. We will improve nearby public
facilities in an integrated manner, seeking to create comfortable, high-quality
areas that will enhance the Osaka-Umeda areaʼs international competitiveness.
Speciﬁcally, we are upgrading city functions, enhancing disaster preparedness,creating new public spaces, and forming attractive townscapes.
Artistʼs impression of completed building■ Project Summary
Location

1-1 Umeda, Kita-ku, OsakaSize

38 ﬂoors above ground and 3 below ground

Site area

Approx. 12,200 m²*

Purpose

Department store, oﬃces, halls, etc.

Total ﬂoor space

Approx. 260,000 m²

Construction completion

Spring 2022

*Includes road between Dai Hanshin Building and New Hankyu Building.

A New Flagship Is Born

Upper-ﬂoor
oﬃces IFor both the Dai Hanshin Building and the New Hankyu Building, which have stood formany years, the issue of how to improve their functions was a pressing one. The

Upper-ﬂoor
oﬃces IIOﬃce ﬂoors ELEV

launch of the Hankyu Hanshin Holdings Group presented an opportunity to pursue areconstruction plan where Hanshin Electric Railway and Hankyu Corporation could
work in tandem, and reconstruction began in October 2014.

Mid-ﬂooroﬃces

Phase I was completed in April 2018 and in June of the same year, the Hanshin

Lower-ﬂoor
oﬃces

department store (Hanshin Umeda Main Store) opened to the public. Work began on
Machinery room

place oﬃce zones as well as conference zones to share business information. In
September 2021, construction on the department zone in the Phase II building area

Department store

was completed and a month later opened as part of the Hanshin department store. In

Oﬃce lobby

East-side ELEV

Conference zone

Shuttle ELEV (capacity: 80)

Rooftop open spacewith each ﬂoor hosting a rental ﬂoor space of more than 3,500 m², we have put inOﬃce
entrance

the spring of 2022, construction work on the Groupʼs new ﬂagship, Osaka Umeda

Bike/Motorbike Parking

Twin Towers South, will ﬁnally come to a close.

Parking

Parking ELEV

Phase IIʼs new construction in June 2019, and in addition to a department store zone,

Building use diagram

Regulation Easing Has Led to More Space
The characteristic point of this project was our use of the street-level area between the Dai
Hanshin Building and the New Hankyu Building to form one new building. This concept owes
much to regulation easing that came with a 2011 revision to the Act on Special Measures
Concerning Urban Reconstruction, which recognized special measures within urgent urban
renewal areas.* This project was the ﬁrst in Japan to start construction and apply the special
measures outlined in the 2011 revision.
In addition, the easing of ﬂoor area ratios (FAR) and wall setback distances has allowed us
to open up a large amount of space that would not have been possible with renewing the twobuildings separately; this has further improved the value of the building.
*Areas designated by law or regulations as those deemed to beneﬁt particularly from urgent and priority promotion ofurban facilities through swift, smooth urban development projects, etc., to enhance the areaʼs international
competitiveness.

Street-level open air area

Regulation easing applied in this project· Construction use of space above roads(from exclusive road use)
· Easing of FAR (1,000% → 2,000%)· Easing wall setback distance (2.0 m → 0.5 m)

Helping to Make the Area More Disaster-Resilient
We have used the large amount of space that became available above the road. On 11F, there
are two multi-purpose event halls (one large, one small, collectively Umeda South Hall) in theconference zone that can accept more than 1,000 guests. On 12F, there is a rooftop plaza,around 1,000 m², covered in greenery.
These two ﬂoors can also be used as a temporary space to house people unable to gethome should a large-scale disaster occur, which contributes to enhancing disaster-preparedness
in the Osaka-Umeda area.

25

Hankyu Hanshin Holdings Integrated Report 2021

Artistʼs impression of Umeda South Hall (main hall)Redevelopment of the Surrounding Area
In addition to widening underground passages around JR Osaka Station andmanaging maintenance, we have been making the underground, above-ground

JR Osaka Stationand decking levels more accessible. Our redevelopment of the site has also

Widened underground passageways

integrated public facilities in the area. Through these initiatives, we have madeBeautiﬁcation andearthquake prooﬁng of
new pedestrian bridge

Umeda Hankyu Building(Hankyu Department Store)

the area safer and easier to navigate, resulting into a more comfortable,higher-quality urban district.

Undergroundpassageways
around the site

Open space

ProfilePassageways
within the site

Space above road used

Improved
accessibility of areaaround the site

Umeda
DT Tower
Osaka Ekimae
Daiichi Bldg.

Osaka Ekimae
Daiyon Bldg.
Osaka Ekimae
Daini Bldg.

Above-ground walkway (post-widening measures)

Underground

Above groundDecking level• Widening the undergroundpassages around JR Osaka
Station• Making the surrounding area
more accessible• Constructing undergroundwalkways in the surrounding area

• Widening walkways in thesurrounding area andmanaging beautiﬁcationand daily maintenance• Constructing open spaceson the west side of theplanned site area

• Beautifying new Umeda
pedestrian bridges andimproving theirearthquake-resistance• Constructing passageways
throughout the site (2F ofthe planned building)

Osaka Ekimae
Daisan Bldg.

Integrated
reconstruction andsimultaneous area
facility renovation
Underground

Above ground

Widening andbeautiﬁcation ofpassageways aroundthe site

Messages fromthe Top Management

Underground passage (post-widening measures)

2F

Underground passageways

Widening passageways/beautiﬁcation

Pedestrian decking

Accessibility improvements

Open space

Space above road used

Creating Real Value:
Our StoryOﬃce Zone
The upper ﬂoors (11F‒38F) will be an oﬃce zone that is equipped with the latest equipment, a comfortable environment for every oﬃce
worker, informed by three concepts: at the heart of a connected Umeda, a building with outstanding services, and genuine wellbeing.
There is also a ﬂoor (12F) dedicated to serving the buildingʼs oﬃce workers called WELLCO, which gathers together support functions fora wide variety of workstyles̶enhancing worker creativity and productivity.

Air-conditioning control zone

Middleand lower
ﬂoors

Space for stairs

Accessible toilet

Approx. 48 m

Creating Real Value:
The Processes

Upper
ﬂoors

Kitchenette

Supplies room
Emergency ELEV
ELEV hall(for middle
ﬂoors)

Heavy-duty zone

Kitchenette

Space for stairs

Approx. 96 m

Artistʼs impression of an oﬃce

Creating Real Value:
The Foundations

Ground plan of an oﬃce ﬂoor

■ WELLCO, a Dedicated Floor for Oﬃce Workers
To bring this oﬃce concept to life, we have incorporated functions that will allow oﬃce workers to rest well, work
well, and learn well. The goal is to create a virtuous cycle that will lead to highly creative work. Learning madepossible by suitable opportunities for oﬃce workers to rest and interact with their fellows will enhance both
workersʼ balance between mind and body and their dynamism.
The ﬂoor will comprise three main areas̶a café serving healthy food, a lounge and workspace that caters tovarious needs from solo work to large meetings, and a wellness zone that workers can use to refresh or to countera lack of exercise. Moreover, the ﬂoor will have permanent concierges that can help address usersʼ problems.

Financial Section andCorporate Data

The reason behind the name
The concept for this ﬂoor is rest well, work well, learn
well̶hence the “Well” part of the name. The “co” comesfrom the communication and collaboration the ﬂoor will
inspire and that will allow oﬃce workers to fully
demonstrate their abilities.
CaféLounge and workspace

Wellness zone

In spring 2022, when this project is scheduled to be completed, the Umeda Hankyu Building̶which houses Hankyu Department
Store (Hankyu Umeda Main Store)̶will be renamed Osaka Umeda Twin Towers North. Alongside Osaka Umeda Twin Towers
South, the plan is for the two buildings to be known collectively as the Osaka Umeda Twin Towers. The name was chosen because
it can be easily recognized by those outside Osaka or even abroad as belonging to the two multistory towers that represent the
Hankyu Hanshin Holdings Group and their home of Osaka-Umeda, the Groupʼs primary base of operations.

Hankyu Hanshin Holdings Integrated Report 2021

26

Creating Real Value: Our Story
SpecialFeatureOperational Area Growth̶Past, Present, and Future

Osaka Station North
District (Umekita)
Phase II Development
Project

PROJECT
Project
Progress

02

Osaka-Umeda Is Being Reborn with MoreThan 45,000 m² of Open Green Spaces

Artistʼs impression of completed building■ Project Summary
Private-sector zone speciﬁcations

A joint venture of nine developers (including Hankyu

Zone

Corporation; led by Mitsubishi Estate Co., Ltd.) formed a

Site area

consortium with six design and operating companies

Total ﬂoor space

Approx. 149,200 m²

Approx. 407,250 m²

Main purposesCore function,* hotel,
residence, etc.

Oﬃces, hotels, commercial facilities,
MICE facilities, residences, etc.

(including

HankyuHanshin

Properties)

tosubmitanapplication to develop the Osaka Station North District

North zone

South zone

Approx. 15,720 m²

Approx. 30,430 m²

to lead development of the area, which began in December*We will establish platform facilities conducive to life design innovation (approx. 10,000m²) and innovation facilities (approx. 20,000 m²: MICE facilities, co-working space,
SOHOs, etc.), and collaborate with Knowledge Capital, the intellectual creation hub of
GRAND FRONT OSAKA and other such functions to pursue the creation of life design
innovation.

2020.

Urban open space speciﬁcations(Umekita) Phase II Development area. As a result, theconsortium was selected by the Urban Renaissance Agency

In line with our community building concept of fusing
greenery and innovation, we are leading urban development
in Osaka, the Kansai region, and even the world from here in
Umekita in order to realize a new city model for Osaka thattakes into account themes such as the new or next normal,
Society 5.0, and the SDGs. (Initial opening scheduled forSite area

Approx. 45,000m²

Total facility ﬂoor space

Approx. 12,500m²

Main purposes

Museum, experiential learning facilities, roofed open
spaces, restaurants, shops, etc.

Note: Speciﬁcations for private-sector zones are those at the start of construction(December 2020); speciﬁcations for urban open spaces are those included in theinitial proposal (May 2018).

summer 2024; complete opening in ﬁscal 2028)

Project
Progress

03

New Lines Planned byHankyu Corporation③

Enhancing Accessibility in Osaka-Umeda
In order to increase connections between Osaka-Umeda andKansai International Airport, Osaka International Airport(Itami Airport), and Shin-Osaka Station (future plans for which
include the Linear Chuo Shinkansen Line), Hankyu Corporation
is currently investigating plans for three new lines.
In particular, putting these lines in place will raise accessibility

To Takarazuka

Osaka International
Airport(Itami Airport)of visitors, from throughout Japan and abroad, continue to

Umekita Phase II Development Area

① Naniwasuji Connection LineThe line to connect Juso Station with Osaka Station to be newly
constructed in the Osaka Station North District (Umekita) Phase II
Development Area.

②

JR Osaka Station(underground station)

Kobe-sannomiya
Hans

Hankyu Kobe Line

hin M

①

ain L

ine

Port Liner
Osaka-umeda

Kobe Airport

JR
Namba

Shin-Imamiya
Nankai Line (Airport Line)

Hanshin Namba Line

Osaka-Namba
JR Osaka Loop Line

Tennoji
JR Hanwa Line

② Shin-Osaka Connection LineThe line to connect Juso Station with Shin-Osaka Station.

③ Osaka Airport LineThe line to diverge from the Takarazuka Line and be connected to
Osaka International Airport.

27

Hankyu Hanshin Holdings Integrated Report 2021

Linear Chuo Shinkansen
Hokuriku Shinkansen

Hankyu Kyoto Line

Juso

NaniwasujiLine*choose into the future.

Shin-Osaka

Sanyo Shinkansen

to the Osaka-Umeda area from a wide region and we will
maximize the Osaka-Umedaʼs value as an area that a multitude

HankyuTakarazuka LinePROJECT

Kansai International
Airport*Naniwasuji Line (scheduled to open spring 2031)

TokaidoShinkansen

Kyoto-kawaramachi

Senri-Chuo Area:a Sub-city Center*¹

PROJECT
Project
Progress

04

The large expansive Senri hills stretch across parts of
two cities in Osaka Prefecture, Toyonaka and Suita,
Profileand are home to Japanʼs ﬁrst large-scale “new town,”
Senri New Town, which was oﬃcially opened in 1962.
With Senri-Chuoʼs core function as a sub-city
center,public-private

collaborative

projectsarecurrently underway to adapt the area to the changing
times.

Minoh-Kayano Station (provisional)

Kita-Osaka Kyuko Line extension(Scheduled to open in FY2024)

Minoh-Semba-Handaimae Station (provisional)
To Kadoma-shi

Osaka Airport

Kita-Osaka
Kyuko Line

Osaka Monorail Line

Senri-Chuowith the Japan World Exposition, Osaka. The current line
terminal is Senri-Chuo Station, and the surrounding area is
Osaka-Umeda areas and Osaka International Airport (Itami

To Tokyo

Tokaido Shinkansen Line

Midosuji Line

Osaka Metro

In 1970, the Kita-Osaka Kyuko Railway was opened to coincide

Umeda(Osaka)Approx. 14 mins. toShin-Osaka Station
Approx. 20 mins. to
Umeda Station
Approx. 13 mins. to
Osaka Airport Station

Airport). As well as a growing concentration of houses andCreating Real Value:
Our Story

Sanyo Shinkansen Line

Senri-Chuoʼs Massive Potential as a
Sub-City Center

incredibly convenient for its links to the Shin-Osaka andEsaka

Shin-Osaka

To HakataBampaku-kinen-koen

Aerial photo of the Senri-Chuo area

Messages fromthe Top Management*1 An area located between the main urban area and the suburbs

retail businesses, the area has plenty in the way of oﬃces.
Furthermore, we are planning to extend the Kita-Osaka
Kyuko Railway*2 in ﬁscal 2024, to improve between Senri-Chuoand Minoh, a city with an excellent living environment that acts
as a bedtown for those working in the center of Osaka. Suchmeasures are predicted to raise the value of the Senri-Chuoarea even further.

Senri-Chuo multi-story car park 2(Oﬃce building)Senri Hankyu
Department Store
Senri Selcy(Commercial facilities)

Senri Hankyu HotelIn the Senri-Chuo area at present, there are studies underway
looking at how public-private collaborations can redevelop
the area around Senri-Chuo Station where Senri Hankyu,
Senri Selcy, and other facilities currently stand. Our hotel tothe east of Senri-Chuo Station, the Senri Hankyu Hotel, is due
to cease operations around the end of ﬁscal 2026, and we

Senri Asahi Hankyu Bldg.
(Oﬃce building)are looking into how to eﬀectively develop the hotel site,
Osaka Monorail
Senri-chuo station

To Umeda

Considering redevelopment ideas for the
Senri Hankyu Hotel site

Creating Real Value:
The Foundations

Kita-Osaka Kyuko Line
Senri-Chuo station

Senri-Chuo multi-story car park 1

Hankyu Senri-Chuo Bldg.

*2 Two stations are scheduled to open, Minoh-Semba-Handaimae andMinoh-Kayano, to the north of Senri-Chuo Station.

Creating Real Value:
The Processes

Senri-Chuo multi-story
car park 3【Legend】■ Kita-Osaka Kyuko Line Extension Project
Project summary:• Extension length: Senri-Chuo to Minoh-Kayano (2.5 km)• New stations: Minoh-Semba-Handaimae Station, Minoh-Kayano Station• Estimated project cost: ¥87.4 billion• Demand: 45,000 people per day
Business scheme:• Developers: Kita-Osaka Kyuko Railway and Minoh City (for infrastructure
between Minoh-Semba-Handaimae and Minoh-Kayano stations)• Operated by: Kita-Osaka Kyuko Railway• Applicable grants: Social Capital Development Comprehensive Grant• Kita-Osaka Kyuko expenses: ¥11 billion

redevelopment project.
In this way, we are continuously striving to develop areas
alongside our routes. For example, we have spent more thana decade in the Nishinomiya-kitaguchi area, developing thelarge-scale commercial facility Hankyu Nishinomiya Gardens

Financial Section andCorporate Data

Sole-owned or co-owned properties
H₂O Retailing assets
Area ﬂagged for redevelopment(Commercial facilities etc.)with an eye on the nature and progress of the nearby

and working to make the area more attractive (see pages
29‒30). Here in Senri-Chuo, another important business centerfor the Group, we aim to build a community that supports a
range of people, replicating our success in Nishinomiya-kitaguchi.
Going forward, we will hold multiple discussions with local
authorities and other related parties as we consider things
more carefully.

Schedule:• December 2015: Acquisition of railway project permission and track permit• December 2016: Start of construction• FY2024: Opening target

Hankyu Hanshin Holdings Integrated Report 2021

28

Creating Real Value: Our Story
SpecialFeatureOperational Area Growth ̶Past, Present, and Future

CASE
Past successes

Nishinomiya-kitaguchi̶An Enchanting
Example of Hankyu Hanshin Holdingsʼ
Community Building

The Nishinomiya-kitaguchi area is the most desirable town in which to live in the
Kansai region,* a symbol of work to develop the area that Hankyu Hanshin Holdings
has implemented over the years. The development was based on the driving force that
informs our community building, a spirit of education, culture, and peace of mind.
*1st place for four consecutive years in a SUUMO desirable town ranking for Kansai in 2021; 1st place for six consecutive years
in a 2021 Kansai area ranking of most desirable towns conducted by MAJOR 7 (a group of seven condominium developers);
etc.

Aerial photo of the Nishinomiya-kitaguchi area

The history of Nishinomiya-kitaguchi
Nishinomiya-kitaguchi Station
opened to coincide with the
opening of track between Jusoand Kobe-sannomiya (on what
is now the Hankyu Kobe Line)The Hankyu Imazu Line
completely opened

1920

Potential Oﬀered by a Location Midway between
Osaka-Umeda and Kobe-Sannomiya
Nishinomiya-kitaguchi Station came into being the same year as the Hankyu Kobe Line
opened, 1920. The land here was once a tranquil belt of rural land but with the
opening of the railway station, houses and shops started to be built up alongside. Bit

1926

by bit, through changes such as Hankyu Corporationʼs building of Hankyu Nishinomiya
Stadium in 1937, the town has slowly taken shape.
As the shopping arcades started to deteriorate, there were studies into advanced
uses for the town and through the late 1980s and 1990s, the government started

Hankyuʼs baseball ground in Nishinomiya(Hankyu Nishinomiya Stadium) opened

large-scale redevelopment projects as their principal sponsor.

1937

Nishinomiya-kitaguchi Station is located almost exactly halfway between Osaka-Umeda
and Kobe-Sannomiya, providing highly convenient connections to both. We are making
the most of the massive potential oﬀered by Nishinomiya-kitaguchi and tying it in to1966

Takarazuka(time required: approx. 14 mins.)

To that end, we are making sure
we are actively involved in thisHankyuImazu
Line

The west-bound overbridge section of
the Hankyu Kobe Line between
Nishinomiya-kitaguchi and Shukugawa
stations opened

further development of the area.

redevelopment right from theplanning stage, pushing forward

Level track intersection removed withthe reconstruction of the station building

1984with our plans in cooperation
with government and otherrelated parties.

Kobe-sannomiya(time required:approx. 14 mins.)

Nishinomiya-kitaguchi
Osaka-umeda(time required:approx. 12 mins.)

HankyuKobe Line
Imazu

Kobe-Sannomiya

Osaka-Umeda
Osaka-Namba

Reconstruction of Nishinomiya-kitaguchi
Station, with its symbolic Carillon clockmonument, was completed

1987

The Great Hanshin-Awaji Earthquake
occurred

1995

Construction of Geo Nishinomiya-kitaguchi(First in Geoʼs Nishinomiya-kitaguchi series)

2000

Solar power generation system installedat Nishinomiya-kitaguchi Station

2001

and we and the government had no choice but to put a temporary hold on our

Hankyuʼs baseball ground in Nishinomiya(Hankyu Nishinomiya Stadium) ceased
operations

2002

projects began to revitalize the Nishinomiya-kitaguchi area.

Pedestrian decking opened

2005

buildings to be located in the area, Geo Nishinomiya-kitaguchi. Since then, we have

Hankyu Nishinomiya Gardens opened on
the former site of Hankyuʼs baseball groundin Nishinomiya (Hankyu Nishinomiya Stadium)

2008

which has a direct connection to the station. Later, in 2008, we opened a large-scale

Nishinomiya-kitaguchi placed ﬁrst for theﬁrst time in a ranking of the most desirable
towns in which to live, praised by people
throughout the region for its ease of living
Hankyu Nishinomiya Gardens
Annex opened
Hankyu Nishinomiya Gardens
Gate Building opened

Hanshin Imazu
Main Line

From Disaster to Lively, Popular Place to LiveThe Great Hanshin-Awaji Earthquake in 1995 devastated the area around the station
development projects at the time. With recovery work, though, new urban development
In 2000, we sold condominiums in the ﬁrst of the Geo series of condominium
provided a wealth of high-quality residences, including Geo Tower Nishinomiya-kitaguchi,
commercial facility, Hankyu Nishinomiya Gardens Main Building. The facilityʼs
performance has been positive; by capturing peopleʼs needs and how they have2013

changed with the times, it has been able to create new demand.
We have also worked proactively to attract cultural and educational institutions
such as Konan University and Kwansei Gakuin University Law School to the area; wealso provided the site for the Hyogo Performing Arts Center. In these and other ways,

2018

we are raising the attractiveness of the area; for example, we cooperated with otherorganizations to put in place decking for pedestrians, which runs from the station,
which has provided users with peace of mind.
Nishinomiya-kitaguchi has recovered from the earthquake and been revitalized,
becoming a lively, desirable place to live.

29

Hankyu Hanshin Holdings Integrated Report 2021

Hankyu
Nishinomiya-kitaguchi
StationGeo Tower
Nishinomiyakitaguchi③ Hankyu Nishinomiya Gardens Gate
Building

Station-front
roundabout
Kitaguchi-minami
Hankyu Building① Hankyu Nishinomiya
Gardens Main Building

Meishin Expressway

Konan University
Nishinomiya
Campus

Yamate Main Road

② Hankyu Nishinomiya
Gardens Annex

Messages fromthe Top Management④ Development onwest side of Hankyu
Nishinomiya
Gardens(Scheduled to open
2023)

ProfileHyogo
Performing
Arts Center

New connecting decking

HankyuImazu Line

KonamiSports Clubebe Lin

yu Ko

Hank

Major awards received:
19th (2016) and 23rd (2020) tenant-chosen Developers Award
Gold Award at the Fifth Japan SC Awards (2012)① Hankyu Nishinomiya
Gardens Main Building

Creating Real Value:
Our Story② Hankyu Nishinomiya Gardens③ Hankyu Nishinomiya Gardens
Gate Building④ Development on west side ofHankyu Nishinomiya Gardens

Creating Real Value:
The Processes

Annex(Scheduled to open 2023)

Anticipating Demand and Providing Value

Hankyu Nishinomiya Gardens Main Building is one of western

The spirit that ﬂows through all of our community building, one

Japanʼs largest shopping centers and was constructed in 2008of education, culture, and peace of mind, has borne fruit,on the former site of Hankyu Nishinomiya Stadium, in a fantastic

accomplishing a remarkable invigoration of the Nishinomiya-kitaguchi

commercial region* midway between the cities of Osaka andarea.

Kobe. The facilityʼs Main Building is not just somewhere to

Before the Hankyu Nishinomiya Gardens Main Building opened

shop, it is a lifestyle proposal-based shopping mall that takes(in 2007), Nishinomiya-kitaguchi Station saw an average ofharmony with the rich natural environment to be foundabout 76,000 passengers each weekday. By 2015, that ﬁgure

between Osaka and Kobe as its theme. With an extensive

had grown to around 100,000.

range of high-quality goods that brighten lives, we will meet the

In order to make the area even more convenient andneeds of customers of all ages while also implementing

desirable, and contribute to invigorating our operational area,

measures to combat global warming by increasing greenery

we are progressing with our plan for the site to the west ofaround the site and placing fountains.

Hankyu Nishinomiya Gardens, which will include shops, oﬃces,

the site by opening the Hankyu Nishinomiya Gardens Annex

and rental residences (scheduled to open in September 2023).

Financial Section andCorporate Data

We have worked continuously to raise the attractiveness ofCreating Real Value:
The Foundations

Hankyu Nishinomiya Gardens
̶a Town Symbol

Hankyu Corporationʼs founder, Ichizo Kobayashi, believed his

and Gate Building and renovating the Main Building. Even now,

task to be to anticipate demand inten years after the facility ﬁrst opened, people continue to ﬂood

order to provide value, and that spirit

to the shopping center.

still forms the basis of business and ourHankyu Nishinomiya Gardens has a close relationship with

fundamental philosophy. We will continue

the customers and tenants that use the facility and is a symbol

to create new value as we focus on theof this well-loved, desirable town.

era of the New Normal that we now*As of 2013, the population at diﬀerent radiuses is as follows: 340,000 at 3 km;
780,000 at 5 km. As well as this ample population, Nishinomiya-kitaguchi,
alongside the cities of Ashiya, Nishinomiya, and Takarazuka, form a trade areawith a great deal of purchasing power.

ﬁnd ourselves in, and will keep challenging
ourselves to raise the charms of thisspecial area.

Nishinomiya-kitaguchi
StationNumber of passengers(weekday average)(Thousands of people)
120
100
80
60
40
20
0

2007

2015 (CY)

Hankyu Hanshin Holdings Integrated Report 2021

30

Creating Real Value: The Processes

Sustainable Management
In May 2020, we publicly announced the Hankyu Hanshin Holdings Group Sustainability Declaration, and we are forging ahead
with sustainable management. In the declaration, we present our fundamental policy of creating a future grounded in “Safety andComfort,” and a future colored by “Dreams and Excitement” (see page 2), which underlies our eﬀorts to attain sustainable growth
for the Group. This sustainable management, based on the declaration, will both further accelerate our ESG (Environmental,
Social, and Governance) measures, and help lead to resolving social issues through our business, continuously improving
corporate value, and making society more sustainable.

Priority issues (materiality) and policies

Related ﬁelds*

Safe, reliable infrastructure

S

Provide railways and other infrastructure that are safe and disaster-resilient.
Ensure that anyone can safely access our facilities and services.

SocialThriving communities

S

Help build sustainable communities with rich natural and cultural heritage,
making great places to live in, work in, and visit.

SocialLife designs for tomorrow

S

Promote reﬁned and inspired lifestyle solutions for a better tomorrow.

SocialEmpowering individuals

S

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

SocialEnvironmental protection

E

Contribute toward a low carbon, circular economy.

Environmental

Robust governanceG

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

Governance*The SDG icon that is placed ﬁrst is the most relevant to each priority issue.

Sustainable Management Promotion
Framework
From ﬁscal 2021, the Corporate Sustainability Committee (composition
details to the right), will meet twice each ﬁscal year, in September andSustainability Promotion Framework
Board of Directors
Group Management
Committee(government, investor, competitor trends, etc.), ESG evaluation bodiesʼ
rating situation, and other factors as they formulate policies related tothe sustainable management priority issues, verify the progress of
associated initiatives, and deliberate and decide on items to be
reﬂected in the Medium-term Management Plan.
The committeeʼs deliberations are then referred to the GroupManagement Committee and it also reports to the Board of Directors
and accepts their oversight. In this way, we are promoting sustainable
management and incorporating it into the Groupʼs overall management
system.

31

Hankyu Hanshin Holdings Integrated Report 2021

Topics factored into
Medium-Term Management Plan

February. The committee will consider the outside environment

Audit

Refer/Report(important issues)

Refer/Report(important issues)

Corporate Sustainability Committee
Hankyu Hanshin Holdings Group CEO
Hankyu Hanshin Holdings president, executiveoﬃcer in charge of the Personnel and GeneralAﬀairs Div., executive oﬃcer in charge of theGroup Planning Div., and others nominated by thecommittee chair・Secretariat: Corporate Sustainability Dept. of the Personnel
and General Aﬀairs Div. (supervisory role) and the
Corporate Communication Dept. and Management
Planning Dept. of the Group Planning Div.

・Chair:・Members:

Propose policies

Implement/Report

Group companies

Major Non-Financial KPIs (For more details on other non-ﬁnancial KPIs related to empowering individuals, see page 69.)
• Zero culpable incidents in our railway operation business• Employee satisfaction: Always better than in previous
survey*• Women in management positions: Around 10% in FY2031• Women among new hires: Always more than 30%*The survey is conducted biennially.

• Rate of CO₂ emissions cuts (target for FY2031 compared to FY2014)① Hankyu Hanshin Holdingsʼ and subsidiariesʼ Japanese worksites:26%② Related to energy consumption in the rail operations of Hankyu
Corporation and Hanshin Electric Railway: 40%
We are currently reviewing the CO₂ emission reduction targets above inorder to help achieve carbon neutrality (decarbonization) by 2050.
ProfileProject themes(1) Eliminate accidents and improve safety at railways and commercial facilities(2) Promote actions to prevent/reduce accidents and respond promptly and properly to accidents if they occur(3) Establish safe and comfortable facilities and services that satisfy the needs of a diversity of people(4) Propose products/services for young people who willlead the next generation(5) Create and disseminate cultures through sports andentertainments(6) Improve existing services and create new businesses
by utilizing ICT innovation(1) Improve employee satisfaction and create a more positive
workplace(2) Promote health and productivity management(3) Promote diversity(4) Respect human rights and prevent harassment(5) Cultivate tomorrowʼs leaders(1) Cut greenhouse gas (CO₂) emissions(2) Improve energy eﬃciency (promote energy saving)(3) Use more renewable energy (e.g. solar)(4) Aim for more eco-friendly buildings (green buildings)(5) Produce less waste and recycle more

Creating Real Value:
The Processes(1) Propose products/services that help realize a lifestyle in harmony
with nature(2) Propose products/services that lead to revitalization and promotionof local communities and cultures(3) Propose products/services that respond to diverse values and create
comfort and excitement

Creating Real Value:
Our Story(4) Promote measures to extend the healthy lifespan of theelderly(5) Oﬀer services that satisfy the needs of foreign
visitors/residents(6) Enhance collaboration and partnerships with universities,
research institutions, ventures, local communities, etc.

Messages fromthe Top Management(1) Develop a good living environment (providing good residences, creating green
spaces and public spaces, establishing cultural and educational facilities, etc.)(2) Develop and expand commercial/business areas where people communicate
with each other(3) Create a line-side environment that makes it easier for women to work andraise children(1) Promote eﬀective and transparent corporate governance(2) Ensure compliance and prevent corruption(3) Enhance risk management, including climate change(4) Pay attention to opinions of stakeholders in doing business

Agreement with the TCFD and theUnited Nations Global Compact

When identifying these priority issues,

To implement our sustainable business

To help bring about a more sustainable

we referred to outside expertsʼ opinions,practices,groupwidesociety, we should publicize the stance weincluding on SDGs, global issues, andnon-ﬁnancial KPIs listed above. We also

are taking toward sustainable businessthose issues we have a particular duty toformulated(strategies,

practices, and so in May 2021, we

tackle. By doing so, we were able tospeciﬁc measures, etc.) in line with eachannounced our agreement with the Task

narrow the issues to the six above.

the priority issues in ﬁscal 2021 for

Force

These were then discussed at the Group

each of our businesses, and to conﬁrm(TCFD) and the United Nations Global

Management Committee and conﬁrmed

the progress of the action plans we

Compact.

by the Board of Directors.

formulated speciﬁc non-ﬁnancial KPIs

Note: For more details on the identiﬁcation
process and opinions from outside experts,
see our website:
https://www.hankyu-hanshin.co.jp/sustainability/materiality/ (Japanese only)(see pages 42‒58). These have also

recommendations,informed our application of sustainable

see the following

management into our PDCA cycle from

page.

both

we

set

actionﬁnancial

the
plans

and

on

Climate-Related

Financial Section andCorporate Data

Priority-Issue-Informed Action
Plans and Non-Financial KPIs

Creating Real Value:
The Foundations

Priority Issue Identiﬁcation
Process

Disclosures

For more on our response to the TCFDʼs

non-ﬁnancial

considerations.

Hankyu Hanshin Holdings Integrated Report 2021

32

Creating Real Value: The Processes

Task Force on Climate-related Financial Disclosures
Based on our Hankyu Hanshin Holdings Group Sustainability Declaration, we are pushing forward with a variety of ESG (Environmental, Social,and Governance) initiatives. As part of that, in May 2021 we announced our endorsement of the Task Force on Climate-related Financial
Disclosures (TCFD). In response to the recommendations released by the TCFD, we have used their suggested disclosure categories (see below
for more details) to display our governance, strategy, risk management, and metrics and targets. At the same time, we have identified risks andopportunities in urban transportation (railway operations) and real estate, which are predicted to be particularly affected by climate change.
We will continue to proactively disclose information in line with the TCFD’s disclosure framework.
TCFD’s recommended disclosure categories
CategoryNotes(1) Governance

Details the type of framework used to incorporate climate-related risks and opportunities, as well as strategies, into management(2) Strategy

Anticipates the actual and potential impact (including analysis looking at scenarios involving a 2°C or 4°C rise in temperatures) of
climate-related risks and opportunities, and reflects the findings in business strategies and financial plans, etc.

(3) Risk Management

Details how climate-related risks are evaluated and determined, and whether they are being controlled so as to minimize them(4) Metrics and Targets

Explains progress management for metrics and targets used when evaluating and managing climate-related risks and opportunities(1) Governancemember companies) do the same for risks inherent to their own

Hankyu Hanshin Holdings Group’s Corporate Sustainability

division. The Group has also set up a framework that enables theCommittee is chaired by the Group’s CEO and meets twice a year

correct dissemination of information if an unforeseen incident occurs.

(in September and February). The committee takes short-,

Under this framework, each business site conducts an annual risk

medium-, and long-term perspectives when discussing thesurvey that brings to light, specifically, risks related to climate

direction of the Group’s responses to climate-change-relatedchange (natural disasters, etc.), accidents, information management,

issues. Particularly important topics are reported to, or brought upcompliance, and other organizational management. An appropriate

at, the Group Management Committee or Board of Directors, andresponse is then determined for each. This risk analysis and the risk

incorporated into the Group’s overall management framework.

response situation are reported to the Board of Directors each year.

(See page 31 for more details on our Sustainable Management
Promotion Framework.)

Moreover, from fiscal 2021, the contents of the Corporate
Sustainability Committee’s deliberations are shared with therisk management office and individual core business divisions,(2) Strategy (identifying risks and opportunities)

and are reflected in the Group’s overall risk management.

As progress was made with analyzing climate-change-related issues,
the Group followed the process outlined in the chart on the opposite(4) Metrics and targets

page to identify risks and opportunities that have the potential to

The Group has set “environmental protection” as a priority issue for its

influence business, especially in railway operations and real estate,sustainable management, and a CO₂ emission reduction target has been set

which are predicted to be particularly affected by climate change.

as a groupwide non-financial key performance indicator (KPI).

(Major responses to risks and opportunities)

In railway operations and real estate, to better evaluate and

The Group is already responding to these risks and opportunities

manage climate-change-related risks and opportunities, weboth on a groupwide level and through the risk management

have set individual non-financial KPIs and we are working tostructure in each of the individual business divisions.

maintain and improve our business’ resilience to climate change.

Taking the response to physical risks to railway operations as an
example, we are advancing countermeasures that include
reinforcement work on sloped trackside embankments, steps toprevent water ingress at marshaling yards, train evacuation plans
where rivers are predicted to flood, and bridge replacement work incollaboration with the Japanese government (see pages 35–36 formore details on safety measures). In our real estate business, we areRate of CO₂ emissions cuts (1): D own 26% on FY2014 levels(in FY2031)*produced by Hankyu Hanshin Holdings and subsidiaries’ Japanese worksites

Rate of CO₂ emissions cuts (2): D own 40% on FY2014 levels(in FY2031)*produced by energy consumption at Hankyu’s and Hanshin’s railway operation

carrying out work to prevent flooding resulting from surface run-off*We are currently reviewing the CO₂ emission reduction targets above in order tohelp achieve carbon neutrality (decarbonization) by 2050.

due to sudden heavy rain. We are also making progress with the■ Railway Operations

development of buildings with excellent environmental credentials
and suitability for BCPs, as detailed in (4) metrics and targets.
Going forward, for categories in which impacts are predicted
to be particularly large, we will continue to advance further withanalysis—suchascalculating

financial

impacts—andalso

incorporate our responses to these into our business strategies.
(3) Risk management
The Group has established a dedicated risk management office in
the Personnel and General Affairs Division to oversee groupwide risk
management. The office is responsible for identifying and analyzing
pan-organizational risks, while business divisions (including group33■ Groupwide Targets

Hankyu Hanshin Holdings Integrated Report 2021

Long service downtime* due to natural disaster: Zero*Non-operational for 2 days or more
Target: Hankyu Corporation, Hanshin Electric Railway, Kita-Osaka Kyuko Railway,
and Nose Electric Railway■ Real Estate
BCP compliance rate for large buildings* in the Umeda area: 100%

*Buildings completed in FY2022 or after, which have a total floor space of 30,000 m²
or greater, and have emergency power supplies for 72 hours in three or morestories. Applied from Osaka Umeda Twin Towers South, which is scheduled tobe completed in FY2022.

Environmental certification rate (Green Building, etc.) for large
buildings* used for office or commercial applications: 100%

*Buildings completed in FY2021 or after and which have a total floor space of
30,000 m² or greater (excl. buildings shared with other companies)
Note: Buildings that have acquired the Development Bank of Japan’s DBJ Green
Building certification: Hankyu Nishinomiya Gardens, HEP FIVE, Umeda 1-1
Project (currently certification for the planning for the Osaka Umeda Twin
Towers South), and Kobe Sannomiya Hankyu Building

(2) Strategy Table

Technology
Reputation

Medium tolong term

Carbon offset
credits【Real estate】• There is a limit to energy-saving measures possible with older
buildings, which might lead to purchase costs for a certain amountof emission offset credits.
• Settings of offset credits might lead to an increase in construction
costs due to rising prices for construction materials (concrete,iron, steel, etc.)

Mediumterm

Response toGHG*¹emission
regulations for
ZEBs,*² etc.

【Real estate】【Real estate】• If it becomes necessary to introduce devices, etc., with excellent• If it becomes necessary to strengthen the environmental
environmental credentials, it might lead to an increase incredentials of new buildings, it might lead to improved
construction costs in development and renovation projects.
competitiveness through reduced operating costs and• If older buildings require replacement or renewal, it might lead togreater differentiation.
an increase in construction and renovation costs.

Mediumterm【Railway operations】• If hydrogen energy or new technologies like autonomous 【Real estate】
driving are implemented in society, it might lessen the • If the price of energy-saving equipment and renewableenergy materials drops with the spread of thesecomparative environmental advantages of trains.
Spread of newtechnologies, it might limit construction costs.
technologies【Real estate】• If new technologies are introduced, we might expect a• Introduction of new technologies related to energy-saving or
certain level of reductions of facility management costs
renewable energy might lead to an increase in construction
such as electricity expenses, fuel costs, etc.
costs.

Mediumterm【Railway operations】• Energy price rises might lead to an increase in running costs(electricity expenses) in our railway operations.

ー【Railway operations】• E nergy price rises might lead to improved priceadvantages for trains, which are more energy efficientthan personal cars. In such a case, we might expect
customers to shift to railway transport.

Changes inenergy mixes/ 【Real estate】
energy• Increased efficiency for renewable energies might lead to【Real estate】
demand trends
an increase in facility management costs such as electricity• If we have excellent environment credentials for new
expenses, fuel costs, etc. A rise in the price of constructionbuildings, it might lead to improved property values andmaterials might lead to an increase in construction costs.
sales.

Medium tolong term

Changes in
consumerpreferences【Real estate】• If our response to greater customer needs for buildings andhomes with excellent environmental credentials is too slow, it
might lead to a decrease in property values and brand power(lower rents, occupancy rates, sales numbers, etc.).

【Real estate】• If our response to greater customer needs for buildings
and homes with excellent environmental credentials issuitably fast, it might lead to greater differentiation fromour competitors and an increase in sales and property
values.

Medium tolong term

Changes ininvestors’
evaluation
priorities【Groupwide】• With the ESG investment trend gathering momentum, if weare too slow to respond to and disclose ESG themes, it mightlead to a loss of reputation among investors and an increase incapital procurement costs.

【Groupwide】• With the ESG investment trend gathering momentum,
if we can shift to businesses that are more considerateof carbon reduction and environmental issues, it mightlead to securing new investors who are highly interested
in ESG themes and a decrease in capital procurement
costs.

Short tolong term【Railway operations】• U ltra-large-scale typhoons and increasingly heavy rainfall
might lead to a greater chance of damage due to flooding (ofAbnormal
marshaling yards, subway stations, electrical equipment, etc.) 【Real estate】
weather• As demand for buildings, etc., that are highly resistantor destruction of embankments.
(intensification
to damage— through BCP measures, support for people【Real estate】
of natural
unable to get home, etc.—grows, if we can provide• If commercial facilities or railways are forced to suspenddisasters)
facilities that meet those needs, it might lead to greater
operations, etc., due to larger typhoons, etc., it might lead to acompetitiveness and expanded sales.
decrease in the number of visitors or reduced sales.
• Flooding resulting from surface run-off might lead to a greater
chance of damage to our facilities.

Short tolong term

Rising sea
levels【Real estate】• Responding to rising average temperatures might lead to anincrease in costs to strengthen our air-conditioning capabilities.
• If summer productivity drops due to intense heat, it might leadto an increase in construction expenses.
【Groupwide】• Water ingress into our facilities due to high tides or flooding
might lead to an increase in the chances of damage occurring.

ー

Medium tolong termーLong term

Financial Section andCorporate Data

Rising averagetemperatures【Railway operations】• The rise in average temperatures might lead to an increase
in repair costs for rails, overhead lines, and above-groundfacilities.
• If summer productivity drops due to intense heat, it might leadto an increase in personnel expenses.

Creating Real Value:
The Foundations

Acute

Carbon tax
and costs【Railway operations】【Railway operations】• The imposition or raising of carbon taxes, etc., might lead to an • The imposition or raising of carbon taxes, etc., might
increase in running costs (electricity expenses) in our railway
lead to an increase in gasoline and electricity prices.
operation business.
This could lead to improved price advantages for trains,which are more energy efficient than personal cars.
【Real estate】
In such a case, we might expect customers to shift to• A jump in the price of building materials (concrete, iron, steel,railway transport.
etc.) with a change in costs resulting from carbon tax, etc.,
might lead to an increase in construction costs in development 【Real estate】
and renovation projects.
• To avoid the impact of carbon tax, etc., we would need• An increase in electricity expenses, fuel costs, etc., might leadto accelerate our introduction of renewable energies,
to an increase in facility management costs.
which might lead to a better reputation among tenants.

Creating Real Value:
The Processes

Chronic

Timeframe

Creating Real Value:
Our Story

MarketTransition risks

Opportunity

Messages fromthe Top Management

Physical risks

Risk

ProfileGovernment policy/legal regulations

Category

Major climate-related risks and opportunities facing the Group*1 Greenhouse gases*2 Zero-Energy Building

Hankyu Hanshin Holdings Integrated Report 2021

34

Creating Real Value: The Processes
SpecialFeatureSustainability
Declaration-Related Eﬀorts

Chapter1

The Hankyu Hanshin Holdings Group strives to resolve societal issues through its businesses and to tie this eﬀort
in to achieving sustainable growth in corporate value and making society more sustainable, it is pressing forwardwith a range of ESG-related initiatives based on the Hankyu Hanshin Holdings Group Sustainability Declaration.

Providing infrastructure that is safe anddisaster-resilient and ensure that anyone
can safely access our facilities andservices

Priority Issue ❶Safe, reliableinfrastructure

Our ﬁrst Priority Issue̶safe, reliable infrastructure̶is the cornerstone of the trust placed in us by society and our various
businesses are implementing measures on a daily basis to ensure safety and peace of mind.
In particular, to respond to the increasing severity of climate-related and other natural disasters in recent years, we arepromoting initiatives that aim to prevent or minimize the damage such disasters cause. At the same time, by preparing toreact swiftly and appropriately should a disaster occur, we will develop safer, more damage-resilient infrastructure andprovide facilities and services that anyone can access safely.

Case study

Safer, More Disaster-Resilient Railways

Urban Transportation

In order to carry out their mission of providing safe transportation services, each of the railway companies in our Urban Transportation
Business observes strict safety policies, works toward safety-related targets, and endeavors to maintain resilience and readiness to
implement day-to-day safety measures and ensure safety in emergency situations.**Safety reports are available on each companyʼs website (Japanese only).

Hankyu Corporation https://www.hankyu.co.jp/approach/anzen/

Kita-Osaka Kyuko Railway https://www.kita-kyu.co.jp/company/safety.html

Hanshin Electric Railway https://rail.hanshin.co.jp/service/anzen/

Nose Electric Railway https://noseden.hankyu.co.jp/company/safety.html

Hankyu Corporation
Increasing Railway Facility Resilience
To prepare for increasingly heavy rain, Hankyu Corporation has been carrying out protection work, such as
reinforcements that use concrete or netting, on trackside embankments in turn to ensure they do not collapse.
In ﬁscal 2021, we implemented a program of works in eight locations, including on the embankments for thenorth-bound tracks between Obayashi and Sakasegawa stations on the Imazu Line.
We have also made progress with earthquake-prooﬁng overbridge support pillars; in ﬁscal 2021, we carriedout earthquake-prooﬁng work on pillars around Osaka-umeda, Kobe-sannomiya, Sonoda, Oji-koen, andTakarazuka-minamiguchi stations.

Quickly Evacuating People and Restoring Services

Overbridge support pillar
that has been
earthquake-proofed

Reviewing how we can quickly evacuate passengers from trains stranded between stations
We have always suspended train operations in the event of an earthquake with tremors that register 5 or more on the Japanese
Meteorological Agencyʼs shindo scale of seismic intensity, and not restored them until investigation staﬀ have been able to verify the safetyof our facilities and equipment. In these instances, it has required time to evacuate passengers from trains that are stranded between
stations.
Now, to enable us to evacuate passengers smoothly, we are making a distinction between earthquakes that qualify as “5 Lower” or as“5 Upper” or higher on thescale. For sections of track where 5 Lower tremors were measured, we will allow trains to move to thenearest station, provided train crew are able to conﬁrm it is safe to do so.
*Where 5 Upper tremors or above have been measured, train crew will follow our conventional policy and evacuate passengers to somewhere safe.

Eﬀorts to understand earthquake intensities and swiftly restore train services
When earthquakes occur, depending on their strength, we decide on which sections of track to restrict
train operations. As such, in order to gain detailed information on the intensity of tremors, and to limit
the areas of track for which we have to restrict train operations, we have installed seven seismographs
along our lines.
We have also introduced an earthquake information distribution system that was developed by the
Railway Technical Research Institute. Using this system, we can predict the damage status for each ofEarthquake information distribution
system35

our structures and place personnel and materials at structures likely to suﬀer particularly as a priority,and so we will aim to carry out quicker investigations and swiftly restore train services.

Hankyu Hanshin Holdings Integrated Report 2021

Hanshin Electric Railway
Abnormal Weather Conditions and Natural Disasters
At Hanshin Electric Railway, too, we have installed a number of devices in diﬀerent locations to allow us tobetter respond quickly to abnormal weather conditions̶six rain gauges, nine anemometers (one for windspeed and direction, eight for wind speed), two river water-level gauges, two river monitoring cameras, andtwo bridge angle meters.
To prepare for earthquakes, in addition to our continuing work to earthquake-proof overbridge support
pillars, we have installed seismographs in seven locations and introduced a system that receives
warning, or one of our seismographs detects a

Profileearthquake early warnings from by the Japan Meteorological Agency. When this system receives an early-scale 4 or higher earthquake, it immediately stops

all trains. We have also set rules to govern when train operations can be restarted, depending on thestrength of the earthquake. In these ways, we are working to develop a framework that allows us to

Rain gauges have been
installed in six locations

continue providing services even after a disaster.
•

operations after a-scale4 or higher earthquake-scale Lower 5 or higher: Train operations can be restarted after facility and equipment checks are carriedout (on foot) and their safety veriﬁed.
•-scale 4: Train operations can be restarted after tremors have ceased, provided nothing is amiss, but train
speeds are limited to 25 km/h.
(In parallel, facility and equipment checks are carried and depending on the results the speed limit can be lifted.)

Messages fromthe Top Management

Rules on restarting train

Alterations at Yodogawa Bridge on the Hanshin Namba Line
Currently, the track at either end of the Yodogawa Bridge on the Hanshin Namba Line is lower than
the river embankment and so if the water level is particularly high, it becomes necessary to stop train
operations and close the tide gates. To permanently eliminate this problem, we will raise the height ofCreating Real Value:
Our Story

the bridge, elevate the track sections either side of the bridge, and remove ﬁve level crossings fromalong the work area (around 2.4 km). This project started in December 2018 and is scheduled to be
Artistʼs impression of the completed
bridgecompleted in ﬁscal 2033.

Protecting Train Cars from Flooding
At the Amagasaki Marshaling Yard, which is at risk of being damaged by water ingress resulting from river ﬂooding, we have been carryingout emergency evacuation training to protect the train cars there from ﬂood damage. We are working to minimize the eﬀect on train
operations by stopping this kind of damage before it can happen. Our future aim is to build an even more damage-resilient railway that is

C olumn

Creating Real Value:
The Processes

very capable of responding to abnormal conditions.

Appropriate train operating status information

Both Hankyu Corporation and Hanshin Electric Railway provide train operating statuses, restart predictions, and otherinformation on station displays, websites, Twitter, and other sources in a timely and easy-to-understand manner and also makethe information available in multiple languages. Both are striving to share information so that as many customers as possible canuse our services with peace of mind.

Disaster-Prevention Eﬀorts

Creating Real Value:
The Foundations

Case study

Real Estate

In the Real Estate Business, we are working to develop Osaka-Umeda, home to a large number of oﬃces and commercial facilities, as adisaster-resilient district through disaster-prevention activities, including those to raise awareness.

Financial Section andCorporate Data

Making Umeda Somewhere People Protect One AnotherUmeda Bo-sai Scrum is the name given to disaster preparedness activity unit for visitors to Umeda that are run by the Umeda Area
Management Alliance, which comprises Hankyu Corporation, Hanshin Electric Railway, JR West, GRAND FRONT OSAKA TMO, and Osaka
Metro.
The unit raises disaster-prevention awareness by broadcasting information via posters, digital
signage, websites, social media, and other sources. Through these channels, the unit disseminates
disaster-related information such as where to evacuate in a disaster and provide opportunities forpeople to think about disaster prevention in their everyday lives.
The unit also holds disaster training seminars for Umeda-area oﬃce workers, encourages people tolearn how to help themselves, and connects companies and facilities in the area, all with the aim ofraising Umedaʼs ability to withstand disasters.

Broadcasting information via digital
signageHankyu Hanshin Holdings Integrated Report 2021

36

Creating Real Value: The Processes
SpecialFeatureSustainability Declaration-Related Eﬀorts

Chapter2Strengthening urban functions andachieving attractive environment forcommunity building or internationallycompetitive towns through cross-industry
cooperation and co-creation

Priority Issue ❷Thriving
communities

We are working to achieve thriving communities, our second Priority Issue, by developing good living environments andcommercial and business areas that promote interaction.
In addition, to improve the communityʼs position in international competition between cities, we are proactively
endeavoring to strengthen the districtʼs functions through cross-industry cooperation and co-creation, such as inviting
companies, particularly start-ups, that support new industries.

Case study

Building Communities around Our Railway Operational Area

Real Estate

Since the Group was founded, our eﬀorts to adapt to changes in the times or in society havetaken myriad forms but are focused on areas alongside our railway operation business.
In the Nishinomiya-kitaguchi area, in the city of Nishinomiya in Hyogo Prefecture, we arecontinuously implementing initiatives to help raise the value oﬀered by the area. Our eﬀorts
thus far have included developing the area around the station̶particularly with the large-scale
Hankyu Nishinomiya Gardens commercial facility̶and providing wonderful residences.
In April 2021, we also replaced the station building attached to Hankyu Kobe-sannomiya
Station with a new landmark, the Kobe Sannomiya Hankyu Building, which includes oﬃce andcommercial space as well as a hotel.
The Groupʼs focus is now on our major business sites in the Osaka-Umeda and Senri-Chuo(in Toyonaka, Osaka Prefecture) areas, where we will make eﬀective use of land that currently

Hankyu Hanshin homes,
the Geo brand, areinspired by a conceptof “towards the peak of
reﬁnement and quality”

houses a hotel scheduled to close. We are pushing forward with studies on how to contributeto building a better community and we will continue to work on urban development that raises
the value of our operational area.
(For more information on our community building in the Osaka-Umeda, Senri-Chuo, andNishinomiya-kitaguchi areas, see pages 23‒30.)

Case study

Kobe Sannomiya
Hankyu Building

Creating New Value by Supporting Start-Ups and Co-Creating

Real Estate

In addition to our eﬀorts to systematically increase the value of existing buildings, etc., in the Osaka-Umeda area, we are proactively
supporting start-ups and pursuing cooperative industry and co-creation. Through these measures, we are raising the areaʼs international
competitiveness as a business hub that can create new industries.

Launching Start-Up Support Oﬃce GVH#5
In November 2014, Hankyu Hanshin Properties opened GVH#5, a membership-based
start-up support oﬃce, and is working to further raise the competitiveness andregional potential of the Osaka-Umeda area by supporting start-ups that are looking
to launch new businesses that will create new businesses and enliven the region.
GVH#5 is not just about providing space, in the form of co-working areas or privateoﬃces; the facility also oﬀers a support framework via experts and entrepreneurs,
events and seminars, which all provide opportunities to match start-ups with theresources they need and with other companies and organizations.

GVH#5ʼs co-working space

37

Hankyu Hanshin Holdings Integrated Report 2021

Umeda as an International Hub for Start-Ups
In 2019, Hankyu Corporation (represented in this program by Hankyu Hanshin Properties), along with six other Japanese companies
helped organize Startupbootcamp Scale Osaka, the ﬁrst time the event had been held in Japan.
The Startupbootcamp program is run by the large-scale, UK-based start-up supporter, Rainmaking, and is one of Europeʼs largest
acceleration programs. Its aim is to select start-ups that show global promise, and through training support, proofs-of-concept, andcooperative industry, support their continued growth.
During the program, internationally chosen overseas start-ups use GVH#5 as a base to develop their businesses with JapaneseProfilecompanies.
Through repeated initiatives like these,
we can strengthen our links with promisingoverseas start-ups and the international
start-up community. By doing so, we willassist Osaka and Kansaiʼs growth into aninternational start-up hub.

Messages fromthe Top Management

Participants in Startupbootcamp Scale Osaka (2019)

Creating Real Value:
Our Story

Collaborative Veriﬁcation via Open Network Lab Resi-Tech
Furthermore, since ﬁscal 2020, Hankyu Hanshin Properties has been
involved in Open Network Lab Resi-Tech. The role of this training
program for start-ups related to real estate is to discover and train
promising start-ups that deal in services that have a close aﬃnity
with our Groupʼs businesses (real estate services, lifestyle services,
urban development, etc.).
In ﬁscal 2021, in conjunction with the US company Leela AI, Inc.,
we carried out a proof-of-concept test for AI that uses image

Creating Real Value:
The Processes

diagnosis technologies to quickly detect trouble or irregularities within commercial facilities. If this technology can be commercialized, itwould raise the eﬃciency of the security tasks that are currently undertaken by guards checking security camera footage. It could also lead
to better stop trouble occurring, or minimize its eﬀect, within facilities.
We have been praised by our partners for these kinds of initiatives that allow us to gain feedback from the sites related to our business;in the future, we will continue to work with such partners so as to utilize each otherʼs strengths as we work to cooperate and co-create.
This will result in us being able to provide new value.

Regional Revitalization to Enhance the Hanshin Operational Area

Red-Bodied Train Car Community SpaceUrban Transportation

Creating Real Value:
The Foundations

Case study

Real Estate

Hanshin Electric Railway has signed a collaborative agreement with the independent government-formed Urban Renaissance Agency (UR)to work together to revitalize the region. UR owns around 20,000 rental apartments along Hanshin Electric Railwayʼs tracks and with thisagreement, the two organizations will cooperate with one another in a number of ﬁelds, including community exchanges and lifestyles,
and health. The aim is for these eﬀorts to enliven the region alongside the tracks, particularly at URʼs housing complexes.

Financial Section andCorporate Data

One example is the transfer to UR by Hanshin Electric Railway of a
famed

(Red-Bodied Train Car) that was once used on the

Hanshin Mukogawa Line. In July 2021, UR opened the car as acommunity space in the UR Mukogawa housing complex, which islocated around ten minutesʼ walk from Mukogawadanchi-Mae Station.
The plan for the community space is to act as a base for giving shape tothe local community.
Hanshin Electric Railway aims to achieve sustainable growth, even in asociety characterized by an aging, shrinking population, by working
toward its goal of creating trackside areas full of charm by revitalizing theregion and striving to create attractive urban environments.
The Red-Bodied Train Car community space at the UR Mukogawa
housing complex

Hankyu Hanshin Holdings Integrated Report 2021

38

Creating Real Value: The Processes
SpecialFeatureSustainability Declaration-Related Eﬀorts

Chapter

Creating peace of mind and excitement indaily life through future technology andinnovation

3

Priority Issue ❸Life designs for
tomorrow

Since our foundation, the Group has continued to pass down its heritage of creating value that transcends generations.
By actively utilizing ICT innovations, we continue to create life designs for tomorrow, as our third Priority Issue, by oﬀering
new services that make our customersʼ daily lives richer and create a new culture.

Case study

Mimamorume̶Oﬀering Peace of Mind

Information and Communication Technology

School Route Email Notiﬁcation for Parental Peace of Mind
The school route email notiﬁcation service, Mimamorume, which
has been developed as part of our ICT business, uses IC tags to
let parents know via email when their child has passed throughthe school gates.
This service began as part of one of the Groupʼs in-housestart-ups in 2011. At that time, not many people were aware ofthese kinds of service and the service was only rolled out with
us ﬁguring it out as we went along. But this kind of service, which
greatly reassured parents by letting them watch over theirchildren in real time, met the latent needs of schools, parents,
and guardians and was a big success.
Now, the technology has been installed at around 1,600
schools, and the Mimamorume service has expanded its userbase to 300,000 people.**As of June 30, 2021

Cutting-Edge Technologies Open Up New Protection Possibilities
The needs that Mimamorume catered to do not end there; in 2016, we worked with Hyogo Prefectureʼs Itami City to start a new service,
Machinaka Mimamorume. This system involved placing 1,000 cameras throughout the city, such as on routes to school or at the school
gates, as well as integrated receivers. This enables children, the elderly, and other at-risk groups to be watched over anywhere in the city,
reducing the risk of crime and allowing incidents or accidents to beresolved quickly. Since then, the number of local authorities installingthe system has steadily increased.
In 2020, taking growing needs for peace of mind in regards tohealth with the COVID-19 pandemic into account, we started sales ofan AI-based device that combines facial recognition and bodytemperature measurement functions as part of the Mimamorume line.
Then, in July 2021, we started proof-of-test demonstrations for awrist-worn device, Mimamorume Watch, that allows vital data tochecked remotely. In this and other ways, we are even using AI andother cutting-edge technologies in the healthcare ﬁeld, in which there
is growing interest because of COVID-19, to pursue new services thatmeet the needs of the times.

Mimamorume Watch

39

Hankyu Hanshin Holdings Integrated Report 2021

Taking on Social Issues to Provide Even Greater Reassurance in the FutureWith the school route email notiﬁcation service Mimamorume, we discovered customer needs for a way to conﬁrm whether their children
had arrived at school safely, something that at that time could only be met by directly asking the school. Our proposal to solve this issue
in a form that anybody could use has grown as a new kind of infrastructure since. These kinds of needs will constantly change to adapt tosociety and the times. With Mimamorume, we will always listen carefully to what our customers have to say; we will discover associatedsocial issues and anticipate societal and customer needs to resolve those. By developing services to do so, we will work to bring about asociety in which people can live with even greater peace of mind in the future.
ProfileCase study

New Opportunities to Watch Takarazuka Revue Using Digital Technologies
Entertainment

For those unable to see Takarazuka Revue in the ﬂesh, because they live too far away or for other reasons, we want to ﬁnd a way that they
Messages fromthe Top Management

could enjoy feeling closer to the performances. To that end, we are pressing forward with initiatives to provide viewing opportunities to arange of customers and contribute to expanding the reach of entertainment and creating a new culture.

Live Streaming Takarazuka Revue on Smartphones and TVs
The Takarazuka Revue has a proud tradition stretching back more than 100 years to its founding in 1914. As well as the regularperformances throughout the year at Takarazuka Grand Theater and Tokyo Takarazuka Theater, the revue holds shows in around 20 cities
as part of its annual national tour. There have also been 27 overseas performances in 18 countries and regions around the world. Since

Creating Real Value:
Our Story

2007, to allow even more people to see the stage shows, the revue has organized live viewings at movie theaters across Japan, as well in
Hong Kong and Taiwan, which oﬀer people from many regions, and allages from young to elderly, opportunities to get up close to theperforming arts.
In July 2020, we launched a live streaming service that enables
viewers to enjoy the all of revueʼs shows in real-time from their homes
via their TV, smartphone, or other device. Fiscal 2021 was the ﬁrst
ﬁscal year of the service but viewer ﬁgures totaled about 290,000,
showing how many people enjoyed it.

Creating Real Value:
The Processes

In addition, we have Takarazuka Sky Stage, which broadcasts videosof the stage shows and original programs via satellite or cable TV, aYouTube channel and other tools, which we utilize to provide so many
people with dreams and excitement.

Case study

Live viewing at a movie theater

Giving Shape to Feedback to Propose More Comfortable, More Convenient Lives

Throughout diﬀerent life stages, the people who
use this space do not need to move theirclothes or possessions.
Wifeʼs space

Husbandʼs space

When the children grow up…

Some space forchildrenʼs items

Creating Real Value:
The Foundations

Real Estate

Developing STORAGEA to Cater to Residentsʼ Lifestyles
For Hankyu Hanshin Propertiesʼ Geo condominiums, we have been promoting acyclical project, Geo ﬁt+, that involves gathering feedback from residents that have
moved in, practically testing it out, and then utilizing it in our next productdevelopment process.
In 2020, we developed a new kind of storage space, STORAGEA, by taking on
board customer feedback. To meet the growing desire for more hanging space andFinancial Section andCorporate Datachanges in the composition of families and their lifestyles, we are reviewing the total
amount of space in each room and room layouts. As a result, we incorporated
speciﬁcations that allow users to ﬂexibly adjust hanger rods and shelf space forChildrenʼs toys

い the children grow up…
ださWhen
支給くChildrenʼs space
When children leave home…

Hobby space

実画像

Folding space

Vacuum cleaner,
daily necessities*Usage example

STORAGEA is scheduled to be used in condominiums
opening to residents in March 2022.

storage that eﬀectively uses the whole living space and its usersʼ time. The conceptof ﬂexibly adapting to changing lifestyles, and its practical application STORAGEA,
has garnered praise, and was awarded a Bronze Award in the Housing andArchitecture category of the IAUD International Design Award 2020, which isorganized by the International Association for Universal Design (IAUD).
Going forward, we will continue to pursue and propose comfortable lifestyles in
hand with our customers.

Hankyu Hanshin Holdings Integrated Report 2021

40

Creating Real Value: The Processes

SDGs Trains—S ending Diverse Messages Aimed at Achieving SDGs with Trains Poweredby 100% Renewable Energy —As part of the Hankyu Hanshin Holdings Group’s commitment to creating communities that people will truly want tolive in, we have operated the Hankyu Hanshin Dreams and Communities of the Future Project since 2009. The project,which focuses chiefly on fostering Sustainable Community Development and Tomorrow’s Leader Development, is oneof our efforts aimed at helping meet the SDGs.
In May 2019, to commemorate a decade of project initiatives, we launched the Dreams and Communities of the
Future SDGs Trains. By operating these special trains, we hope to educate people about the SDGs, and about efforts
to achieve them, in cooperation with the government and the municipalities our trains serve, as well as businesses andcivic groups that are serious about SDGs. Since September 2020, we have been promoting this initiative in collaboration
with the Tokyu Group, running SDGs Trains 2020 on routes in the west and east of Japan respectively. We areextending the program another year, into fiscal 2022, as SDGs Trains 2021, with it scheduled to continue until
September 2022.
As mentioned above, the SDGs Trains are in operation in both east and west Japan with the goals of raisingawareness in the SDGs, and we have heard from people who live in our operational area that they got to know about
the SDGs through the trains.
These trains comprise the latest energy-efficient rolling stock of Hankyu Corporation, Hanshin Electric Railway, andTokyu Corporation, and the energy used to run the trains is sourced entirely (effectively 100%) from renewable sources.
As we promote sustainable management, which aims to both resolve social issues and achieve business growth, weare pushing forward with SDGs Trains 2021 and other varied initiatives that contribute to the creation of a sustainable
future.

Hankyu Corporation

Hanshin Electric Railway

Presented with a Special Award (SDGs Partnership Award)
at the 4th Japan SDGs AwardIn December 2020, our Dreams and Communities of the
Future SDGs Trains initiative was well-received and presented
with a Special Award (SDGs Partnership Award) at the 4thJapan SDGs Award, which is organized by the government’s
SDGs Promotion Headquarters. This award is given tocompanies or organizations whose efforts to accomplish theSDGs set by the UN in 2015 are exceptional.

Award ceremony at the main hall of the Prime Minister’s Office

The Hankyu Hanshin Holdings Group supports SDGs.
41

Hankyu Hanshin Holdings Integrated Report 2021

■ Basic Policies❶ Provide quality urban transportation services and otherrelated services
Develop personnel/Strengthen Group collaboration/Enhanceservices and convenience/Expand communication/Enhanceappeal of railway stations❷ Increase convenience and reliability of infrastructure,
expand railway network, and stabilize business baseDevelop railway stations and lines, expand railway network, andstabilize business base by creating new demand and raisingproductivity❸ Ensure safe, reliable transportation

Advance line-side measures in the bus and taxi businesses/
Enhance bicycle parking areas at railway stations and bicycle
rental services

Fiscal 2021 Breakdown of revenues from operations

25.6%(YoY ‒25.4%)

0

-5.1
-40
Also, the pandemic accelerated a changing lifestyle trend that

173.7

120
80

43.5

40.1
11.3

0

-5.1
2020

2021

2022
(Estimate)

Note: The anticipated full-year results for FY2022 are based on
information announced on July 30, 2021.

40

2018
2019
2020
2021
2022
had begunin recentyears—fewer
peopletakingtrains at(FY)
late(Estimate)

Financial Section andCorporate Data

227.2

0

services safely.

(¥ billion)
200

120

2019

and employing new technologies to make operations more efficient.

11.3
antibacterial procedures taken so that customers
can use our

160

156.9

2018

as revising train line schedules to match trends in travel demand

43.5
properly
ventilated,
regularly disinfected,
and have had antiviral,
41.6
40.1
60
40

Operating income (right axis)

Impact of adopting accounting
standard for revenue recognition‒¥4 billion (approx.)

180

60

In such a business climate, we must focus on creating new
movement demand, along with further increasing productivity such

120
80are
the virus and steps to ensure that our trains and buses

Real Estate

Revenues from operations (left axis)

41.6

opportunities for movement and a growing diversification ofCreating Real Value:
The Foundations¥ 568.9 billion

238.6

However, the pandemic has brought changes to people’s
lifestyles, and with more online interaction there have been fewer

mission as a provider of public transport and deliver safe
238.6
236.0
160
227.2
transportation services by implementing a range of measures.
173.7
180
120
We took steps to ensure that our employees
would not spread
156.9

Note: Figures for percentage of revenues from operations arecalculated based on the simple aggregate amount(including intersegment transactions) of each segment.

236.0

is increasing in those areas.

240

Entertainment

240

Umeda district, continue to be highly popular and the population

Impact of adopting accounting(¥ billion)(¥ billion)
for revenue
As COVID-19 spread standard
across Japan,
werecognition
worked to fulfill
300
200our‒¥4 billion (approx.)

Consolidated
revenues fromoperations(¥ billion)300

decline, the Group’s line-side areas, especially in the Osaka-

Revenues and income decreased due to a significant drop in
Revenues from operations (left axis)
Operating income (right axis)
travelers caused by COVID-19

Urban
Transportation

Other
HotelsTravelWhile the overall population in the Kansai region is on the

Fiscal 2021 Review of Operations■ Revenues and Income

Information andCommunication
Technology

Changes in demand for movement due to COVID-19

movement demand.

Enhance security/Develop rolling stock❹ Expand feeder services and extend catchment areas ofrailway lines and stations

International
Transportation

Business Environment

Creating Real Value:
The Processes

ions areunt
egment.

We remain focused on enhancing
the value of our railways byproviding safe, secure, andcomfortable transportation
services.

Creating Real Value:
Our Story

EstateUrban
Transportation

Messages fromthe Top Management

5.6%

Business Strategy

Profileortation

Creating Real Value: The Processes

night
hours.
Due toa dramaticin passengers,
we decided to
Note:
The
anticipatedfull-year
results drop
for FY2022
are based on
information announced on July 30, 2021.
schedule the last train to run earlier on both Hankyu Corporationand Hanshin Electric Railway.
As travel demand plummeted, we also reduced costs on things
like repairs/maintenance and advertising, and in the automobile
business we curtailed bus routes, among many efforts aimed at abusiness recovery.

0

The pandemic still had a tremendous impact on both the-40

railway and automobile business with the number of passengers(FY)

dropping significantly, causing a substantial year-on-year drop in
both revenues from operations and operating income.
Hankyu Hanshin Holdings Integrated Report 2021

42

Creating Real Value: The Processes

In other COVID-19 related efforts, to make riding trains safer,
we installed doors on all platforms at Hankyu Kobe-sannomiya
Station and on some platforms at Hanshin Kobe-sannomiya■ Railway performance results

FY2021

Station. Also, at Hankyu Kobe-sannomiya Station, in tandem withthe reconstruction of the adjacent Kobe Sannomiya Hankyu
Building, we redesigned the station concourse and toilets toimprove passenger convenience and comfort. On the Hanshin

Farerevenues(Millions ofyen)

Mukogawa Line, a newly designed passenger car with a baseball

Rakusaiguchi opened, a grade-separated facility in the spacecreated by elevating the tracks of the Hankyu Kyoto line near

Passenger
volumes(Thousands)

Hankyu Rakusaiguchi Station. This brings us close to the grandopening of the facility.

Change%Non-commuter pass

40,982

61,887-20,905-33.8%

Commuter pass

28,093

34,119-6,025-17.7%

Workers

25,62529,623-3,998-13.5%

Students

2,468

4,496

-2,027-45.1%

69,07596,007-26,931-28.1%

208,035

310,525-102,489-33.0%

Commuter pass

277,068

344,604-67,535-19.6%

Workers

216,044

243,854-27,810-11.4%

Students

61,024

100,750-39,725-39.4%

485,104

655,129-170,025-26.0%

Total

Impact of COVID-19–¥10.9 billion–¥0.9 billion

Hanshin Electric Railway
FY2021

Fiscal 2022 Outlook and Forward Direction
Working to improve productivity and establish new services thatmeet the needs of an era of the New Normal and build revenue

Farerevenues(Millions ofyen)

In fiscal 2022, an increase in transportation revenue is anticipated
for the Hankyu and Hanshin lines plus an increase in transport
revenue in the automobile business as society recovers from thepandemic to some degree, bringing year-on-year increases inrevenue and income.

Passenger
volumes(Thousands)heightened needs for avoiding congested spaces and assuring
private passenger spaces, such as the introduction of a reserved
seating service for an extra fee.
Also ahead, we will keep an eye on trends in passenger

FY2020-7,940%13,725

Commuter pass

10,476

12,327-1,850-15.0%

9,750

11,080-1,330-12.0%

Workers

21,665

ChangeNon-commuter pass

-36.6%

726

1,246

-520

-41.7%

Total

24,20233,993-9,790-28.8%

Non-commuter pass

76,214

118,559-42,345-35.7%

Commuter pass

107,336

127,652-20,316-15.9%

90,809101,243-10,433-10.3%

Students

Workers
Students

Going forward in an era of the New Normal, we plan toimplement measures to earn income that take into consideration

FY2020Non-commuter pass

Total

theme has been introduced to stimulate use of the line.
In the retailing business, the Phase III area of TauT Hankyu

Impact of COVID-19–¥29.7 billion–¥2.2 billion

Hankyu Corporation

Total

16,526

26,409-9,882-37.4%

183,550

246,212-62,661-25.5%

Notes:
1. Revenues of less than one million yen have been rounded down; personnel
totals of less than one thousand people have been rounded down.
2. Fare revenues and passenger volumes from non-commuter pass for Hankyu
include revenues and personnel applicable to PiTaPa zone-specified
discount fares.
3. Sum of tier 1 and tier 2 railway operators for both Hankyu and Hanshin

demand and revise schedules as the occasion demands, andwork to raise productivity by introducing new technologies for
operational systems at stations, maintenance, etc.

■ Transportation revenue
Hankyu Corporation transportation revenue (tier 1 + tier 2)
FY2011
Non-commuter pass

Commuter pass

Total

60,00029,484

89,485FY201260,26829,922

90,191FY201360,74930,391

91,141FY2014
61,63031,29992,929FY201560,91031,549(¥ million)
FY201662,92032,272FY201762,72032,628FY201863,13733,198

100%

101%

102%

104%

63,05933,456FY202061,887

34,11992,45995,192

95,34896,33596,51696,007

103%

106%

107%

108%

108%

107%

FY2011 transportation revenue (total) = 100%
120%

FY201940,98228,09369,075

77%

100%
80%
60%

FY2021

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Hanshin Electric Railway transportation revenue (tier 1 + tier 2)
FY2011
Non-commuter pass

Commuter pass

Total

18,89910,12629,025FY2012
19,422

10,62330,045FY2013
19,66910,74030,410FY2014
20,26011,00831,269FY201520,286

11,107

120%

100%

104%

105%

108%

2011

2012

2013

2014

48,69529,56378,25988%

2022(Estimate)(¥ million)
FY2016
21,035

11,372FY2017
21,136

11,563

FY201821,638

11,797FY201922,03012,024FY202021,665

12,32731,39432,40732,69933,436

34,05433,993

108%

112%

113%

115%

117%

117%

FY2011 transportation revenue (total) = 100%

FY2022(estimate)

FY2021
13,725

10,47624,202

83%

100%

FY2022(estimate)
16,926

10,76927,696

95%

80%
60%

43

Hankyu Hanshin Holdings Integrated Report 2021

2015

2016

2017

2018

2019

2020

2021

2022

(Estimate)Main Efforts Based on Priority Issues for Sustainable Management (Urban Transportation)
Priority issues

Safe, reliableinfrastructure

Reason for action
plan based on
opportunity and risk

No accidents involving
death

Hankyu Bus
Hanshin Bus
Osaka Airport Transport
Hankyu Taxi
Hanshin Taxi
Osaka-Hanshin Taxi

Hankyu Bus: 0 incidents
Hanshin Bus: 0 incidents
Osaka Airport Transport: 0 incidents
Hankyu Taxi: 0 incidents
Hanshin Taxi: 1 incident(Accident was fault of other party)
Osaka-Hanshin Taxi: 0 incidents

In response to rising interest in customer safety and peace of mind, to add transport reliability to the given fundamental of transport safety to put
customers at ease and strengthen the Group’s brand and trustworthiness• Seismic retrofitting(elevated bridges/
stations)• Slope protection• Flood protection for
major facilities(including railcar
evacuation)• Bridge
reconstruction tolower risk of flooding• Ascertainment ofbridge soundness

Long service
downtime due tonatural disaster(non-operational for
2 days or more)

Zero

Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway

0 incidents

To improve sturdiness to make railway infrastructure more resistant to natural disasters such as earthquakes or torrential rains and typhoons thatare intensifying due to climate change, and to set up core systems to enable continuation of operation after a disaster in order to strengthen theGroup’s brand and trustworthiness• Expand wheelchair
space in railcars,
improve
responsiveness of
guidance chimes forthe vision-impaired,etc.
• Encourage rail transit
employees (station
employees, traincrew, etc.) toacquire service
assistant certification

Increase number ofbarrier-free railcars(units)• Guidance chime installation rate
Hankyu：28%
Hanshin：65%
Kita-Osaka Kyuko：0%
Nose：7%
Aim for steady increase

Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway• Installation rate of advance warning
light for side sliding door opening/closing
Hankyu：62%
Hanshin：64%
Kita-Osaka Kyuko：86%
Nose：67%

Percentage ofbarrier-free railway
stations• 100% have elevator or
slope*1

Hankyu：98%
Hanshin：98%
Kita-Osaka Kyuko：100%
Nose：100%

Barrier-free humanservice rate

• 100% service assistantcertification among railtransit employees(station employees,
train crew, etc.)

Hankyu：55%
Hanshin：100%
Kita-Osaka Kyuko：99%
Nose：33%

To proceed with barrier-free measures both technical and human to provide safe, comfortable, high-quality service for diversifying needs in order tostrengthen the Group’s brand and trustworthiness• Introduction of new
low-energyconsumption railcars• Conversion to LED
lighting in stationbuildings, etc.

Rate of conversion
to VVVF invertertype railcars*2

Aim for steady increase

LED light
conversion• Station lighting(excluding back yard)
Hankyu:100% (Fiscal 2031)
Hanshin:
100% (Fiscal 2031)
Kita-Osaka Kyuko:
100% (Fiscal 2022)

Hankyu：56% (95/169)
Hanshin：64% (49/76)
Kita-Osaka Kyuko：100%
Nose：20% (3/15)
Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway

Financial Section andCorporate Data

Environmental
protection

Maintain at zero

Creating Real Value:
The Foundations

Reason for action
plan based on
opportunity and risk

FY2021 Actual record
Hankyu: 0 incidents (since 1979)
Hanshin: 0 incidents (since 1986)
Kita-Osaka Kyuko: 0 incidents (since 1970)
Nose Electric: 0 incidents (since 1981)

Creating Real Value:
The Processes

Safe, reliableinfrastructure

Major accident inautomobile business

Scope
Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway

Creating Real Value:
Our Story

Reason for action
plan based on
opportunity and risk

Culpable incident inrailway operation
business

Target values

Messages fromthe Top Management

Reason for action
plan based on
opportunity and risk

• Improve safety
education training
and performance of
train operation
safety systems

Non-financial KPIs

ProfileSafe, reliableinfrastructure

Action plan

Hankyu：52%
Hanshin：66%
Kita-Osaka Kyuko：98%• To accelerate environmental measures amidst rising interest in environmental issues such as global warming in order to meet the expectations ofsociety• To prepare for the risk of rising costs such as electricity rates accompanying stricter environmental regulations*1 Percentage of accessible stations (among stations that service 3,000 or more passengers per day)*2 VVVF inverter-type railcar: a different type of railcar (not the type that generates waste heat energy to control resistors to adjust the voltage for the motor), but a moreenvironmentally efficient railcar that can control the motor’s voltage and frequency without waste

Hankyu Hanshin Holdings Integrated Report 2021

44

Creating Real Value: The Processes

Business Strategy

Real Estate
Our goal is to support attractive
urban development while offering
the choice of an affluent lifestyle.

■ Basic Policies

Business Environment

Real estate leasing business❶ Enhance appeal of and revitalize Osaka-Umeda area
and other areas served by our lines• Consider and promote systematic building reconstruction in
the Osaka-Umeda area
• Develop major line-side bases from a long-term perspective• Strengthen competitive ability of existing lease properties❷ Strengthen business foundation, etc., in Tokyo
metropolitan area

• Participate in medium- and long-term projects (urban
redevelopment, building reconstruction, etc.)• Expand business portfolio (rental condominiums for income, etc.)• Start expanding business area (extend to Nagoya area andmajor regional cities)❺ Expand and further accelerate the scale of international
businesses• Expand the scale of residential business in ASEAN nations
 cquire non-residential assets such as commercial facilities and offices•A❻ Strengthen and expand non-asset businessOther(¥ billion)
300

0.8%

0

ions areunt
egment.

0

120

2021

31.8

2022
(Estimate)
Note: The anticipated full-year results for FY2022 are based on
information announced on July 30, 2021.

45

160

80

28.9

Hankyu Hanshin Holdings Integrated Report 2021

0

were 2018
completedand handedin the 2022
previous term,
20192020 over
2021(FY) and

244.1

236.0

2020

160

41.5
41.0
40
31.8
28.9
In the domestic condominium business, large-scale properties

188.4

2019

188.4

60

(¥ billion)
200

2018

236.0

some commercial facilities and a shortening of hours,
etc.,
80
leading to a decreaseinrevenueandincome49.3

Operating income (right axis)

41.5

222.6

(¥ billion)
200

120

Real Estate

30.8%

180

Operating income (right axis)

180The COVID-19 pandemic caused the temporary closure
120
of(YoY ‒25.4%)

49.3

areas that offer high convenience (near train stations or other240¥ 568.9 billion

Revenues from operations (left axis)

41.0

properties, but demand also continues to be strong for downtown

Fiscal 2021
Review of Operations
244.1
237.3

Note: Figures for percentage of revenues from operations arecalculated based on the simple aggregate amount(including intersegment transactions) of each segment.

60

In the domestic condominium sales business, lifestyle changes
brought on by the pandemic have raised interest in suburban(¥ billion)
300

Entertainmentl Estate

COVID-19 are likely to be limited.

Revenues
fromoperations(left axis)
demandcanbe expected.

Consolidated
revenues fromoperations

120

in the marketplace and demand is steady; also, the effects ofeconomic growth in the medium to long term, so a growth in

Urban
Transportation

Hotels237.3

leasing, but the office buildings in our Group are well-positioned

impact on ASEAN countries, but we anticipate continuing

Fiscal 2021 Breakdown of revenues from operations

222.6

rising. This and other signs point to a declining demand forestate business outside of Japan, COVID-19 has had a certain■ Revenues and Income

240

place. In offices, the vacancy rate for the market as a whole isprime locations), which is a focus of our Company. In the real

• Expand scope of real estate funds and REIT businessortationstate-of-emergency declarations, among other restrictions. A

operating hours. However, we now see a gradual recovery taking❹ Secure stable profits in the real estate sales businessand expand scale of operations

Information andCommunication
Technology

business, even causing the Japanese government to issue multiple

the Osaka-Umeda area, with temporary closures and shortened

Real estate sales business and others

TravelThe spread of COVID-19 had an impact on the real estate leasinglarge number of commercial facilities were affected, including in❸ Strengthen the distribution facility real estate

International
Transportation

Impacted by COVID-19, but firm demand for well-locatedoffice buildings and condominiums(Estimate)
had full-year
a big impact
in FY2022
the realbusiness,
Note:COVID-19
The anticipatedresults forareestatebased leasingon
information announced on July 30, 2021.

leading to a significant year-on-year decline in revenues andoperating income.

Real Estate Leasing Business
COVID-19 significantly affected the Osaka-Umeda area and alarge number of commercial facilities, with temporary closuresand shortened operating hours. Even so, with the construction

40

completed on the Kobe Sannomiya Hankyu Building (Chuo-ku,0(FY)Kobe), which is directly connected to Hankyu Kobe-sannomiya

Fiscal 2022 Outlook and Forward Direction

Station, the completion of H-Cube Minamiaoyama (Minato-ku,
Tokyo), and the renewals of Nodahanshin Wiste (Fukushima-ku,
Osaka) and Emiru Takatsuki (Takatsuki, Osaka Pref.), we have

Preparing for an era of the New Normal and pursuing better
urban development

commercial facilities and office buildings, and maintain andIn fiscal 2022 there is expected to be an increase in condominium

improve occupancy rates. And in distribution facilities, Logista

units sold and higher rental income in our leasing business,

Kyoto Kamitoba was completed in July 2020 (Minami-ku, Kyoto),

signaling a degree of recovery from the effects of the pandemic

and Logista Logicross Ibaraki Saito (Ibaraki, Osaka Pref.) — a joint

with a rise in revenues and income over the previous year.

project with another enterprise— was completed in May 2021.

Going forward, in the real estate leasing business we will

The large-scale development project Umeda 1-1 (building

continue to focus on further increasing the attractiveness of line-

name: Osaka Umeda Twin Towers South) is scheduled for overallside areas and revitalizing them, particularly in the Osaka-Umeda

completion in the spring of 2022, and construction on the phase-area.
increase in condominium sales domestically, we have been

the summer of 2024.

expanding our business to include the development and sale ofReal Estate Sales and Other Businesses

income-property rental condominiums, among other measures,

In the domestic condominium business, sales of numerous units

thereby attaining stable profits in real estate sales and expanding

were made, including at Geo Tower Minamimorimachi (Kita-ku,

the scale of our business. Overseas, as well, with a focus on the

Osaka), Geo Kitasenri Fujishirodai (Suita, Osaka), and Geo

ASEAN region, where continued growth is expected, we have

Shinmaruko (Kawasaki, Kanagawa). In detached houses, sales

been pursuing real estate sales and leasing, aiming to expand theincluded properties at Geo Garden Saito Minoh (Minoh, Osaka),

scale of those businesses.

Geo Garden Nishinomiya Hama Koshien (Nishinomiya, Hyogo),

Then, to respond to the rapid changes in lifestyles and working

and Geo Garden Suginami Igusa (Suginami, Tokyo).

styles brought on by the pandemic, in the office leasing business
we began a satellite office business, and opened our first satellite

expanding the scale of our business, participating in condominium

office facility in Senri-Chuo (Toyonaka, Osaka Pref.) in April 2021.

and residential sales projects in Thailand, Vietnam, and otherIn the housing business, we are planning products that take into

ASEAN countries, as well as real estate leasing projects inconsideration changing lifestyles, and will continue to pursue

Indonesia, and the development and operation of distribution

policies in line with an era of New Normal.

warehouses in Vietnam.

Creating Real Value:
The Processes

In the real estate business outside Japan, we have been

Finally, in the important business areas for our Group of Osaka-■ Domestic condominium units soldUmeda and Senri-Chuo, with the closing of our existing hotels in(units)these two areas, we will be proceeding to study how to improve

2,000

the value of the areas by effectively utilizing the vacant lots andwill pursue better urban development.

1,516

1,500
1,000

Creating Real Value:
Our Story

In real estate sales and other business, in addition to an

Umekita Phase II Development Project, which set to open around

Messages fromthe Top Management

two building is in progress. Construction has also started on theProfilebeen taking measures to strengthen the competitiveness of our

1,087

1,159

1,114

2017

2018

2019

867

0

2020

2021

Creating Real Value:
The Foundations

500

(FY)

■ Leasable area (at end of fiscal year)(unit: 1,000 m2)

2,000

1,600

1,400

1,200

Completion of Umeda
Hankyu Building Oﬃce
Tower

2011

1,000

900

810

Completion of GRANDFRONT OSAKA

2012

2,000

Completion of Umeda Hankyu
Building Phase II Building

1,580
680

(unit: 1,000 m2)

2013

2014

2015

Financial Section andCorporate Data

1,800

Leasable area (left axis)
Leasable area in Umeda (right axis)

Acquired LaLaport Koshien(site)Start of work on Phase I of
the Umeda 1-1 Project

800

700

Completion of Umeda 1-1 Project Phase I,
start of work on Phase II, partial sale ofstake in GRAND FRONT OSAKA

2016

2017

2018

2019

2020

2021

(FY)

600

Hankyu Hanshin Holdings Integrated Report 2021

46

Creating Real Value: The Processes

Main Efforts Based on Priority Issues for Sustainable Management (Real Estate Business)
Priority issues

Safe, reliableinfrastructure
Reason for action
plan based on
opportunity and risk

Thriving
communities

Reason for action
plan based on
opportunity and risk

Life designs for
tomorrow

Reason for action
plan based on
opportunity and risk

Environmental
protection

Reason for action
plan based on
opportunity and risk

Action planNon-financial KPIs

• Implement
measures, bothhuman andtechnological, toenable customer
use with peace ofmind, including
measures tomanage natural
disasters

Accident and emergency
course attendance rate(for employees in realestate leasing)
BCP readiness*1 rate forlarge buildings in the
Osaka-Umeda area*2

Target values

Scope

FY2021 Actual record

100% (fiscal 2031)

Hankyu Hanshin
Properties
Hankyu Hanshin
Building Management

64％

100%

Hankyu Corporation
Hanshin Electric
Railway
Hankyu Hanshin
Properties―
Note: To apply starting with
Osaka Umeda Twin
Towers South (to becompleted in fiscal 2022)

In response to rising calls for safety, to prepare for accidents or natural disasters such as earthquakes or flooding from storms occurring more
frequently because of climate change through measures both human and technological, thereby strengthening the Group’s brand value andtrustworthiness• Carry out robust
urban developmentthat promotes easeof use for diverse
customers andworking styles

Rate of multilingual
guidance at majorcommercial facilities in
the Osaka-Umeda area

Number of startups andother collaborative
projects aimed atcreating new work-lifeplay forms for diverse
lifestyles and to provide
services that improvesafety, comfort, andpeace of mind

100%

Hankyu Corporation
Hanshin Electric
Railway
Hankyu Hanshin
Properties

100%
Note: Targeted facilities: Hankyu
Sanban Gai, HEP Five,
Herbis Plaza ENT(Facilities website andpamphlet available in 4
languages, interpretation
service available atinformation desk)

Aiming for a steady increase

Hankyu Corporation
Hanshin Electric
Railway
Hankyu Hanshin
Properties

38 instances(since fiscal 2019)

To provide facilities and services that deliver safety and comfort and offer dreams and inspiration, and that are easy to use for a diverse range ofcustomers, including non-Japanese people; and to get out ahead of the growing need for work style reform and diversification, thereby
differentiating our Company from others and strengthening our competitiveness•W ork to improvecustomersatisfaction by
responding tocustomers’ diverse
values, providing
comfort andinspiration, andproposing lifestyles
and carrying out
urban development
projects that willlead to community
revitalization

Geo condominium or andhome purchasedesirability and tenant/owner satisfaction rates

Number of apartment
units in ASEAN countries(total)• Purchase desirability survey ofprospective buyers (conducted by
our Company on the Web)
Kansai-region condominiums:
Maintained No. 1 brand position in
KansaiTokyo-region condominiums: Amongthe top 7 brands in Tokyo (FY2031)• Tenant/owner satisfaction rates
Condominium tenants in Kansai
region: continued to be 90% or higher
Condominium tenants in Tokyo
region: 90% or higher (FY2031)
Detached-home owners in Kansai
region: 90% or higher (FY2031)

Aim is for a steady increase

Hankyu Corporation
Hanshin Electric
Railway
Hankyu Hanshin
Properties

Hankyu Hanshin
Properties• Purchase desirability
No. 1 among 18 brands forprospective condominium
buyers in Kansai region
No. 9 among 16 brands forprospective condominium
buyers in Tokyo region• Satisfaction rates
Among condominium tenants in
Kansai region: 89%
Among condominium tenants inTokyo region: 89%
Among detached-home owners
in Kansai region: 100%
Approx. 30,050 units(Vietnam: 11,000; Thailand:
11,000; Philippines: 4,000;
Indonesia: 3,000; Malaysia:
1,000)• To increase customer satisfaction and boost loyalty to the company brands, propose lifestyles that match diversifying customer values and needs,
and carry out urban development for local revitalization and the benefit of the next generation• To leverage our expertise from Japan to contribute to local urban development in ASEAN countries in order to boost the Group’s brand value
overseas and develop future clientele• Reduce CO₂
emissions byimproving energy
efficiencies, etc.,
and pursue green
building andeco-friendly
housing tocontribute toresolving societal
issues anddifferentiate thecompany

Acquisition rate of green
building and otherenvironmental
certifications*3 that
apply to office buildings
and large buildings forcommercial and otheruses*4100%

Hankyu Corporation
Hanshin Electric
Railway
Hankyu Hanshin
Properties―
Note: To apply starting with the
Kobe Sannomiya Hankyu
Building (completed infiscal 2021; certified infiscal 2022)
Reference: Properties that haveacquired the DBJ Green Building
certification: Hankyu Nishinomiya
Gardens, HEP Five, Umeda 1-1
Project (Osaka Umeda Twin
Towers South Plan*5; construction
to be completed in spring 2022)

To respond to societal demands for a low-carbon economy and greenhouse gas reductions, we will pursue energy-saving and energy-creating
measures and efforts to achieve net-zero-energy buildings and homes, and acquire green building certifications and the like, thereby establishing a
progressive environmental approach that differentiates our Company from others and strengthens our competitiveness*1 B
 CP readiness: emergency power installed at the 3rd floor and above; emergency power to last 72 hours*2 Large buildings in the Osaka-Umeda area: buildings with a total floor area of 30,000 m² or more completed in FY2022 or later*3 Environmental certifications: systems such as DBJ Green Building, CASBEE, BELS, LEED, etc.
*4 Office buildings and large buildings for commercial and other uses: buildings with a total floor area of 30,000 m² or more (excluding properties jointly owned with anothercompany) completed in FY2021 or later*5 Prior to completion, a scoring system based on the development plan using the DBJ Green Building certification model to provide the framework for certification of the plan

47

Hankyu Hanshin Holdings Integrated Report 2021

Business Environment■ Basic Policies❶ Maximize value of the Hanshin Tigers and KoshienbrandsForge a team that contends for the championship on a regularbasis/Increase the appeal of Hanshin Koshien Stadium and the
Koshien area, and expand the stadium business❷ Maximize value of the Takarazuka brand

Still a strong desire for live, in-person attendance of baseballgames and theater
Government restrictions on the hosting of events during the
COVID-19 pandemic had a major impact on attendance at our

Quickly restore the capacity utilization and build a strong
financial record for the Takarazuka Revue/Actively expand thecontent business using digital technologies/Increase international
business

baseball stadium and theaters. Still, demand is expected to❸ Advance growth of other entertainment businesses andthe leisure business

anticipated as soon as restrictions are eased. Also, thanks to the

Expand the music business and Mt. Rokko businesses

remain strong going forward for attending baseball games andCreating Real Value:
Our Story

theater performances live and in person, so a quick recovery is
pandemic, which kept people indoors at home, we were able to
distribute new content to people online via the internet—a new
expansion of content enjoyment that is expected to further grow

■ Revenues and Income

our customer base.

Fiscal 2021 Breakdown of revenues from operations

Urban
Transportation

Other
HotelsInternational
Transportation
TravelInformation andCommunication
Technology

Revenues 2021
from operations(left ofaxis)Operations
Operating income (right axis)
FiscalReview(¥ billion)(¥ billion)
Decrease in revenue and income from fewer performances
140
70

Consolidated
revenues fromoperations

and lower
121.1seating capacity due to the pandemic
12080
difficultbusiness74.5
environment.
74.0 Hanshin Koshien Stadium,40the(YoY ‒25.4%)

6.9%

0
everything
possible to manage such facilities well, but 0the-10
-2.3
decrease in games and performances and restrictions on seating

Note: Figures for percentage of revenues from operations arecalculated based on the simple aggregate amount(including intersegment transactions) of each segment.

(¥ billion)
140
120

Operating income (right axis)(¥ billion)
70

121.1

60
50

80

74.5

60
40

17.8

20

13.4

74.0
42.2
11.7

59.2

5.6

0

-2.3
2018

2019

2020

2021

(Estimate)in revenues
fromandoperatingincome.
Note
1: In line withtheoperations
launch of theInformation
andCommunication
Technology business, ﬁgures post-FY2019 do not include theseSportsBusinessbusiness segments.
Note
2:Hanshin
The anticipatedfull-year
resultsforof
ﬁscal
are basedon games
The
Tigers heardthecheersfans2022
and wonenoughinformation announced on July 30, 2021.

to remain in the race at the end of the season. Also, we worked to40

expand fan services, putting energy into providing information30

through ToraTele, the official video service, as one example.

20

Stage Business

10
0
-10

2022
(Estimate)2019a significant
2020 decline
2021 from 2022
capacity2018
have caused
the previous(FY)
year

(FY)

Note 1: In line with the launch of the Information and Communication
Technology business, ﬁgures post-FY2019 do not include thesebusiness segments.
Note 2: The anticipated full-year results for ﬁscal 2022 are based on
information announced on July 30, 2021.

Financial Section andCorporate Data

100

Creating Real Value:
The Foundations

59.2 been taking
60
30
Takarazuka
Theaters, and other facilities have
42.2
40
20
17.8
measures toprevent the spread of COVID-19 and put customers
13.4
11.7
20
10
at ease upon attendance. While doing so, we
5.6 have done

Real EstateEntertainment

60

The pandemic has had a huge impact and created an extremely
100
50¥ 568.9 billion

Revenues from operations (left axis)

Creating Real Value:
The Processes

ions areunt
egment.

We will continue to fulfill dreams
and offer excitement through ourcontent.

Messages fromthe Top Management

EstateEntertainment
Profileortation

Business Strategy

Performances proved popular, including the Snow Troupe
performances “fff –fortississimo–” (the final show of one of thetroupe’s top stars) and “Silk Road: A Bandit and a Jewel.” Also, alive streaming service was inaugurated that allows people towatch the Takarazuka Revue on their home TV, smartphone, orother device. The service is now being used by a large number ofcustomers.

Hankyu Hanshin Holdings Integrated Report 2021

48

Creating Real Value: The Processes

Fiscal 2022 Outlook and Forward Direction

a rise in revenues and income over the previous year.

While valuing real-world attendance, we will use digitaltechnologies to expand to new customers

real-world attendance of professional baseball games andIn fiscal 2022, in the sports business, there will be more Hanshin

promoting live attendance for both types of content, which will

Tigers regular season home games and a rise in stadium

help maximize brand value in both the sports and stage

attendance; similarly in the stage business, there will be morebusinesses. We will also develop new ways of promoting theperformances and theater attendees. That indicates a degree ofenjoyment of content using digital tools to activate the existing

recovery from the effects of the pandemic to be accompanied bycustomer base and attract new customers.

Even in the New Normal, there will likely be strong demand fortheater performances. For that reason, we will continue■ Total attendance at Hanshin Tigers home games (by season)

Impacts of COVID-19• Home games: 60 (9 less than in
the previous year)• Adhering to event restrictions,
one game was held without fans,and 33 games were held with anattendance capacity of 5,000• With the easing of event
restrictions in September, 26
games were held with anattendance capacity of 20,000(Thousands of people)
3,500
3,000

2,898

2,500

2,728

2,772

2,690

2,911

2,878

3,035

3,091

2,899

2,000
1,500
1,000

518

500
0

2011

2012

2013

2014

2016

2015

2017

2018

■ Takarazuka Revue total attendance of performances(Thousands of people)
3,500
3,000
2,500

2,392

2,502

Takarazuka Grand Theater/Tokyo Takarazuka TheaterLive viewing*¹

2,672

2,668

Live streaming*

2,825

2,844

Other theaters

2

2,996

3,128

2,991

2,000

1,565

1,500
1,000
500
0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

*1 Live streaming of shows at movie theaters nationwide for paying audiences*2 Live streaming of shows via the internet for viewing at home on a TV, smartphone, or other device for paying viewers

49

Hankyu Hanshin Holdings Integrated Report 2021

2020 (CY)2019

Impacts of COVID-19• Number of performances at
Takarazuka Grand Theater: 240 (179
fewer YoY); at Tokyo Takarazuka
Theater: 265 (172 fewer YoY)
• Adhering to event restrictions, at
50% or less attendance capacity, 51
performances were held at
Takarazuka Grand Theater and 66 at
Tokyo Takarazuka Theater• Full allowed capacity excluding thefrontmost and some other seats for
189 performances at Takarazuka
Grand Theater and 199 at Tokyo
Takarazuka Theater(FY)Main Efforts Based on Priority Issues for Sustainable Management (Entertainment Business)
Priority issues

Reason for action
plan based on
opportunity and risk

Reason for action
plan based on
opportunity and risk

Hanshin Tigers BaseballClub

38 classes

To promote baseball by developing women’s baseball and by training youth as the next generation of good athletes, thereby expanding the fanbase for professional baseball• Actively provide opportunities toschool groups to attend
performances of the Takarazuka
Revue• Hold events for youth such as
kids’ seminars• Hold lectures and seminars led by
Takarazuka Revue alumnae incollaboration with the media• Hold series of Takarazuka
Kodomo Athene*² classes at the
Takarazuka Music School

Number of students/
children who attended
a performance andrelated program

Over 60,000(annually)

Hankyu Corporation
Umeda Arts Theater
Takarazuka Live Next
Takarazuka Music School

Approx. 10,000 (attendeesof performance/related
program, Takarazuka
Music School candidates,
Takarazuka Kodomo
Athene students)
Note: Down in fiscal 2021
due to the pandemic• To provide opportunities for youth to have contact with the performing arts and contribute to cultural education, including fostering a richimagination and artistic sensibilities• To give dreams to children by promoting the appeal of the Takarazuka Music School and supporting the fulfillment of their dreams through astrong school curriculum, thereby contributing to the cultivation of young talent• Hold performances of the
Takarazuka Revue outside of the
Osaka and Tokyo areas• Offer live viewing at movie
theaters or other venues and live
stream to mobile devices,
employing digital technologies
and delivery services• Stream video using Takarazuka
Sky Stage*³• Stream video using
YouTube, etc.

Total number ofviewers of theater
performances throughlive viewing and live
streaming, participantsin Takarazuka Sky Stage(households), andYouTube channel
subscribers

Over 900,000(fiscal 2026)

Hankyu Corporation
Takarazuka Creative Arts
Takarazuka Stage
Takarazuka Music School

Approx. 640,000• To get people to become more familiar with the Takarazuka Revue in many other parts of Japan using advanced digital technologies even if
they are unable to get to a theater, thereby creating more opportunities for people to have contact with the performing arts
• Promote the appeal of the Takarazuka Music School to all parts of Japan, and by fostering the dream among children of performing on stage,
help build a society that encourages dreams and ambitions• Convert Hanshin Koshien Stadium
lighting to LED lighting for night
games and placement around thestadium, utilize solar panels on
the roof known as “Ginsan,” andhold “carbon offset” games• Switch to the use of biomass
packaging material at food stalls
and take steps to reduce plastic
checkout bags
• Implement the collection andrecycling of plastic cups

Usage rate of
non-plastic foodpackaging

Plastic cup collectionrate

Pro baseball/highschool baseballgames: 70% each(2030 season)

70% (2030
season)Pro baseball: 45%
High school baseball: 35%(2019 season)
Hanshin Electric Railway
Hanshin Tigers Baseball Club
Wellness Hanshin

Financial Section andCorporate Data

Environmental
protection

Maintain 50 ormore classes into
the future

Creating Real Value:
The Foundations

Reason for action
plan based on
opportunity and risk

Number of baseballschool classes hosted
by the Tigers Academy

FY2021 Actual record

Creating Real Value:
The Processes

Life designs for
tomorrow• Provide opportunities for children
to experience the natural appealof baseball through the Tigers
Academy*¹

Scope

Creating Real Value:
Our Story

Reason for action
plan based on
opportunity and risk

Target values

Messages fromthe Top Management

Life designs for
tomorrow

Non-financial KPIs

ProfileLife designs for
tomorrow

Action plan

18% (2019 season)

Carry out environmental measures at Hanshin Koshien Stadium and comprehensively publicize those efforts, thereby contributing toward theachievement of a low-carbon, circular society*1 T igers Academy: A school business established in fiscal 2019 to instruct children on how to play baseball or how to dance*2 Takarazuka Kodomo Athene: A school run by employees of the Takarazuka Music School that teaches singing, ballet and classical Japanese dance to girls from 4th to 8th
grade (40 students/year)*3 Takarazuka Sky Stage: A service for viewing public performances and original programs featuring Takarazuka Revue stars via CS broadcasts and cable TV

Hankyu Hanshin Holdings Integrated Report 2021

50

Creating Real Value: The Processes

Business Strategy

Information andCommunication
Technology
Contributing to the developmentof society through information andcommunications technology■ Basic Policies❶ Steadily grow existing business in information services mainly

through multimedia and healthcare, transportation, facilities, andbusiness in the enterprise sector,* and respond to the demandfor digital transformation (DX) accelerated by the pandemic—
the New Normal measures aimed at sustainable profit growth❷ Achieve stable income in the broadcasting and communications

business by expanding and improving regionally based products
andservices,acquiringcustomers
mainlythroughcommunications services, and retaining customers through theintroduction and development of lifestyle services❸ Expand our safety and education business further in response toprogramming education becoming a compulsory school subject,and increasing needs for peace of mind and safety*Enterprise sector: sales of computer equipment and services, commissioned
development of public and industrial systems, etc.

as rapid advances are made in information and communication
technology (ICT) and markets expand for systems solutions andthings like internet-based mail order. Companies are starting toinvest seriously in digital transformation, adapting their businessmodels to changing lifestyles brought on by the pandemic.
The broadcasting and communications business will see
greater opportunity as greater numbers of people subscribe toremote work, and as telecommunications technologies advancedemand growth in telecommunications.

Fiscal 2021 Breakdown of revenues from operations

The market for the safety and education business is likely to

Urban
Transportation

continuegrowingas(leftparents
andguardians
Revenues
fromoperations
axis)
Operatingincometake(rightincreasing
axis)

HotelsInternational
Transportation

the STEAM education* approach to learning takes hold. 40
80¥ 568.9 billion

Travel9.5%

interest in our child safety service that monitors children’s(¥ billion)(¥ billion)
Eﬀect of applying accounting
journeys to and fromschool, as programming classes became
60
120standard for revenue recognition
Approx.
‒¥3 inbillioncompulsory in elementary schools
starting
fiscal 2021,50
and as100

Consolidated
revenues fromoperations

Information andCommunication
Technology

61.6
58.6
30
60across the53.5
58.1
subject areas of Science, Technology,
Engineering, the Arts and*STEAM Education is an approach to learning that provides an integrated education(YoY ‒25.4%)

Mathematics aimed at solving real-world societal issues as part of the learning
20
process.

40

Real Estate

20Entertainment

Revenues from operations (left axis)(¥ billion)
120
100
80
60

53.5

58.6

58.1

61.6

0

5.3
2019

5.6
2020

5.6
2021

6.0

10

2019

2020

2021

2022
(Estimate)

(FY)

0

(¥ billion)60

Note: The anticipated full-year results for FY2022 are based onover,
but moreinternetsubscribers
brought income up to
information
announced
on July
30, 2021.

previous year’s level

In the information services business, we focused as before on the

50

field of transportation systems, and worked to provide services

40

for the new demand that is expected to accompany technological30

innovations and a further adoption of digital technologies.

20

In the broadcasting and communications business, we

6.0

10

expanded steadily, working to provide fiber-to-the-home (FTTH)

2022(Estimate)

(FY)

0

service for high-speed internet, and took orders from local

40
20

5.6

Revenues dropped as a large project order was not carried

Operating income (right axis)

Eﬀect of applying accounting
standard for revenue recognition
Approx. ‒¥3 billion

5.6

5.3

Fiscal 2021 Review of Operations

0

Note: Figures for percentage of revenues from operations arecalculated based on the simple aggregate amount(including intersegment transactions) of each segment.

ions areunt
egment.

Strong growth is expected in the market for information services

and needs grow for data centers to meet further anticipated

Other

EstateMarkets are expanding in all business areas as technologicalinnovations unfold

cable TV that includes internet service needed to carry out■ Revenues and Income

ortation

Business Environment

Note: The anticipated full-year results for FY2022 are based on
information announced on July 30, 2021.

governments to build high-speed communications networks inelementary and junior high schools.
In the safety and education business, we saw a steady increasein subscribers to the Mimamorume email notification service thatallows parents and guardians to check on their children as they
go to and from school.

51

Hankyu Hanshin Holdings Integrated Report 2021

In the information services business overall, revenues fromlifestyle services, responding to the increase in demand for

operations decreased with a large project order not carried overtelecommunications as remote work proliferates, working tofrom the previous year in transportation systems, but an increaseacquire and retain more customers in order to achieve stablein internet subscribers in the broadcasting and communications

growth and higher profits.

business meant that operating income remained at the previous

In the safety and education business, we aim to expand theMimamorume service into the Tokyo metropolitan area andyear’s level.

Fiscal 2022 Outlook and Forward Direction

business. In the ProgLab robot programming classes for children,

Expanding existing businesses, responding to new needs,
and aiming for continued growth

to expand the curriculum guided by a STEAM education approach.

In the information services business, an increase in orders in fiscal
year, but an accompanying rise in cost prices plus high laborcosts associated with expanding business will offset that revenue
and keep operating income steady.
Looking ahead in the information services business, we will
fully utilize our strengths, including multi-vendor capabilities*¹ andthe ability to provide one-stop service,*² to further expand ourexisting businesses and become more closely attuned to the
In the broadcasting and communications business, we will
expand our products and services, and develop and expand*1 T he ability to build efficient systems that dovetail with the products of othercompanies*2 Integrated services extending from system building to operation, monitoring, andmaintenance■ Number of households
subscribing to cable TV(1,000 households)(Thousands of people)
300

800
600

604

625

■ Mimamorume (schoolroute email notification
service) subscribers

648

673
200

200

230

260

290

400

100

200
0

2018 2019 2020 2021 (FY)0Creating Real Value:
Our Story

needs emerging from the pandemic to grow returns sustainably.

we will continue to build scale, including franchising, and also plan

Messages fromthe Top Management

2022 is expected to bring in greater revenue than the previous

Profileextend the services themselves to further increase the scale of the2018 2019 2020 2021 (FY)

Main Efforts Based on Priority Issues for Sustainable Management(Information and Communications Technology Business)

Action planNon-financial KPIs

Target values

Scope

FY2021 Actual record

Number of local
authorities to sign adisaster preparedness
agreement― (monitoring actual
record)Bay Communications
Hanshin Cable Engineering

Safe, reliableinfrastructure• Strengthen efforts aimed atgetting local authorities to enter
into an agreement on disaster
preparedness in the KyotoOsaka-Kobe area and Tokyo
metropolitan area (BayCommunications has alreadysigned agreements with all local
authorities in its sales area)

Bay Communications: 4
local authorities
Hanshin Cable Engineering:
14 local authorities

Thriving
communities

RobustgovernanceReason for action
plan based on
opportunity and risk

• Use the Mimamorume schoolroute safety tracking system as
the core of our security businessto expand GPS services asservices that differentiate us andenhance our competitiveness• Expand the Machinaka
Mimamorume service for city
residents, an opportunity forusing our BWA business

Number of local
authorities to which we
contract GPS service
and Machinaka
Mimamorume andother safety systems― (monitoring actual
record)Mimamorume

GPS service contracts: 54
local authorities
Machinaka Mimamorume:
5 local authorities

Financial Section andCorporate Data

Reason for action
plan based on
opportunity and risk

• To respond rapidly and appropriately when a disaster occurs as a local telecommunications infrastructure provider, thereby contributing to thesafety and security of local residents• To strengthen responses to local government needs (disaster preparedness and mitigation, crime prevention, etc.) in preparation for expanding
the BWA business*¹

Creating Real Value:
The Foundations

Reason for action
plan based on
opportunity and risk

Creating Real Value:
The Processes

Priority issues• To help raise the value of line-side areas by responding to increased interest in safety and security• To utilize the Group’s wireless and wired communications networks, external lines, and construction expertise for expanding services• Acquire external certification for
information security(PrivacyMark, ISMS*²)

Status of acquisition of
external certification
for information
security (PrivacyMark,ISMS)― (monitoring actual
record)Bay Communications
Hanshin Cable Engineering
Itec Hankyu Hanshin
Mimamorume

PrivacyMark certification:
Bay Communications,
Hanshin Cable Engineering,
Itec Hankyu Hanshin,Mimamorume
ISMS certification: Itec
Hankyu Hanshin

To ensure the secure handling of personal information and electronic data as an information and communications technology company tostrengthen customer trust in the company*1 BWA business: Broadband Wireless Access system *2 ISMS: Information Security Management System

Hankyu Hanshin Holdings Integrated Report 2021

52

Creating Real Value: The Processes

Business Strategy

TravelCreating travel itineraries thatreflect customers’ desires

Business Environment■ Basic Policies❶ Strengthen competitiveness of travel packages
Strengthen areas outside Europe/Strengthen specialized
products/Win over new customers/Strengthen collaboration
with local areas❷ Strengthen management base

Amidst a dramatic downturn due to COVID-19, latent travel
demand became a business opportunity
Currently, there are global restrictions in place on people’s
movements due to the COVID-19 pandemic, so travel demand

Improve online reservation rate/Streamline administrative work

has fallen off steeply. The number of airline flights has also
plummeted, and the requirement to ensure physical distancing
has led to higher unit costs because of capacity limitations■ Revenues and Income

imposed on public transport and facilities. Also, the supply chain

Fiscal 2021 Breakdown of revenues from operations
HotelsInternational
Transportation

has seen changes taking place. At the same time, with a shift

Urban
Transportation

Other

Revenues
from operations
incomeaxis)
from overseas
travel (leftto axis)domesticOperating
travel andthe(right
avoidanceofcongested spaces, new needs are emerging among
travelers(¥ billion)(¥ billion)
Eﬀect of applying accounting
60
120
during the
pandemic.
We
areturningthesefactors
intobusiness
standard for revenue recognition
108.7‒¥94 billiona recovery in travel demand
50
100
opportunities, while Approx.
also anticipating

Consolidated
revenues fromoperations

Travel2.0%

Information andCommunication
Technology¥ 568.9 billion

80
as soon as the pandemic comes to an end.

60 In terms of business management, we are speeding up30
efforts(YoY ‒25.4%)

40
aimed
at business
whole,
35.5restructuring for the travel industry as a20
34.0

33.8

Real Estate

which includes the further adoption of digital technologies
10 and20Entertainment

2.1

personnel.
2018

ortation(¥ billion)
120

2019

2020

2021

-8.7

2022
(Estimate)

Fiscal 2021 Review of Operations
Note: The anticipated full-year results for FY2022 are based on

-10

(FY)

information announced on July 30, 2021.

Lower revenues and incomes due to COVID-19

50

An extremely difficult business climate remains, with tour

40

cancellations affecting the international travel division over the

60

30

year, among other effects of the pandemic. In the domestic travel

20

division, the government’s Go To Travel campaign boosted the10number of customers going on tours, but for the year overall0

there was a steep drop-off from the previous year. Under these-10

circumstances, we closed some travel offices, even though few(FY)tours are sold face-to-face. (Media advertising is our primary means

40
20
0

ions areunt
egment.

108.7(¥ billion)
60

-7.4

80

100

EstateOperating income (right axis)

Eﬀect of applying accounting
standard for revenue recognition
Approx. ‒¥94 billion

12.0

1.8

0.2
shrinking of fixed costs by reducing
the number of our offices
0 and0Note: Figures for percentage of revenues from operations arecalculated based on the simple aggregate amount(including intersegment transactions) of each segment.
Revenues from operations (left axis)

40

34.0
2.1

35.5
1.8

33.8
0.2

12.0

-7.4
2018

2019

2020

2021

-8.7

2022
(Estimate)

Note: The anticipated full-year results for FY2022 are based on
information announced on July 30, 2021.

of attracting customers.) Meanwhile, we took other cost-saving
measures to try to balance income and expenditures.
Nonetheless, the pandemic hit travel hard, as stated above,and both revenues from operations and operating income took amajor hit when compared year over year.

53

Hankyu Hanshin Holdings Integrated Report 2021

Fiscal 2022 Outlook and Forward Direction

forward with initiatives for the medium to long term grounded in

Planning for post-pandemic streamlining and business base
restructuring■ Domestic/International Travel Billings(fiscal 2017–fiscal 2021)

In fiscal 2022, in addition to a significant bump in revenue from(¥ billion)

applying the new revenue recognition standard, an increase infrom the pandemic to a reasonable extent will produce a big
increase in revenues from operations over the previous year.
However, operating income will be worse than last year becauseof high personnel expenses relative to fiscal 2021, when costs
such as that of furloughing staff were recognized as extraordinary
It will likely take some time for demand to recover, so we will
review expenditures and to acquire new clientele we will
reexamine the media mix for travel advertising and try to makebetter use of the internet by encouraging online reservations, etc.
We also plan to further strengthen our earning power bybolstering domestic travel during the pandemic and pushing

International travel

350
300
250

129.0

136.1

136.7

128.6

200
150
100

186.9

206.6

229.8

Messages fromthe Top Management

losses.

Domestic travel

400
Profilecustomers taking domestic tours and other forms of recovery

our basic policy.

203.3

50

55.9 2.5

0

2017

2018

2019

2020

2021

(FY)

Note: F igures represent the aggregate amounts from Hankyu Travel International,
Hankyu Hanshin Business Travel and Hanshin Travel International (offsettingintersegment transactions)

Priority issues

Reason for action
plan based on
opportunity and risk

Reason for action
plan based on
opportunity and risk

Reason for action
plan based on
opportunity and risk

Scope

Hankyu Travel
InternationalZero, ongoing

FY2021 Actual record

0 incidents

To respond rapidly and appropriately to an accident when operating tours or upon the occurrence of a natural disaster, thereby helping to build
customer trust and bolster our brand value• Plan tours that promote local areas incoordination with local governments(long-stay domestic travel,
infrastructure study tours, communitybased tours that start and end in
localities, etc.)• Hold seminars through Hankyu
Tabikotojuku* that promote regionaland cultural development• Support regional development
through General Incorporated
Association Chiiki Mirai Kikaku

Number ofcollaborating local
governments

70 per year (fiscal 2022)
Maintain similar numbers going
forwardHankyu Travel
International

68 local governments

To strengthen mutually beneficial collaboration with local governments and actively promote the appeal of the important elements of travel—localities
and culture—thereby contributing to regional revitalization• Conduct questionnaires of tour
participants• Expand customer hot-line/customer
center system• Improve quality through tour
monitoring by employees and checks
during the first run of a trip
• Hold meeting on safe international
travel locally• Improve response through a callcenter and Web-based inquiry service

Satisfaction rate
based onquestionnaires• Satisfaction rate (fiscal 2031)
International/with guide: 90%
International/without guide: 90%
Domestic/overnight: 85%
Domestic/day trip: 85%

Hankyu Travel
International

Financial Section andCorporate Data

Robustgovernance

Number ofaccident reports ofserious culpable
incidents (death orserious injury)

Target values

Creating Real Value:
The Foundations

Life designs for
tomorrow

Non-financial KPIs

Creating Real Value:
The Processes

Safe, reliableinfrastructure

Action plan
• Preparation of serious-accident
response manual and other manuals(as necessary revising BCPs which
stipulate response to natural
disasters, in light of the intensificationof natural disasters due to climatechange)• Employee and supplier training in safe
operations• Information dissemination on safe
operations• Supplier assessments

Creating Real Value:
Our Story

Main Efforts Based on Priority Issues for Sustainable Management (Travel Business)• Customer satisfaction
International/with guide*International/without guide*
Domestic/overnight: 85%
Domestic/day trip: 82%*No international tours dueto the COVID-19 pandemic

To improve satisfaction rates by directly hearing customers’ voices and meeting diversifying needs with regard to the undefinable product of travel,
thereby further boosting product value*Hankyu Tabikotojuku: Lectures and workshops held by Hankyu Travel International in Tokyo, Osaka, and other parts of Japan to share helpful tips on travel and informationthat makes travel more enjoyable

Hankyu Hanshin Holdings Integrated Report 2021

54

Creating Real Value: The Processes

Business Strategy

International
Transportation
As a comprehensive distribution
enterprise, we are offering
creative, high-value-added services
to customers on a global basis.

Business Environment■ Basic Policies❶ Reform to establish a balanced business portfolio· Strengthen air freight, sea freight, and logistics services
businesses globally❷ Develop and implement optimal measures for profit
growth· Proceed with operational and structural reforms using IT, etc.
· Strengthen sales capabilities globally· Maximize synergy with the Seino Holdings Group❸ Fortify systems to ensure robust global governance

The global distribution market will grow in the long term
While the global population is expected to continuing rising, theexpansion of the electronic commerce market and increasing
separation of manufacturing locations from consumption areas
with further diversification anticipated means that the role of the
global forwarder will continue to expand, not as a freight carrier
but for its ability to make optimal proposals to customers centeredon shipping arrangements. In particular, we foresee the role of theJapanese forwarder growing by providing comprehensive, highquality, high-value-added distribution services.

■ Revenues and Income

By region, a slowing down is anticipated in Japan, North

Fiscal 2021 Breakdown of revenues from operations
Urban
Transportation

Other
HotelsInternational
Transportation

14.0%

TravelInformation andCommunication
Technology
Entertainment

America, and Europe, but in regions of growth, primarily in Asia,
Revenues
from operations(left axis) to continue
Operatingexpanding.
income (right axis)
distribution
can be expected(¥ billion)
120
100¥ 568.9 billion

50

87.0

revenues and income

20

Distribution demand has shrunk, affected by the COVID-19
20
10
2.8on top 2.4
pandemicof the impact
felt 2.3
from the2.8
U.S.-China trade
0.2
0
0

2018
2019 around2020the autumn
2021
frictionthat beganof 20222018. Plus,(FY)
air and(Estimate)ocean transport supply is unstable, which is another factor in a

Operating income (right axis)(¥ billion)60

Note: The anticipated full-year results for FY2022 are based on
informationclimate
announced
on July
30, 2021.to be tough. Under suchbusinessthat
continues

circumstances, to ensure that global distribution did not come toa halt, we have kept all of our business locations running, both in

50

Japan

40

transportation demand from East Asia. Through these and other60

30

measures we attempted to improve our finances, which had

40

20

been hit hard by the U.S.-China trade friction in fiscal 2020, and10achieved year-on-year increases in both revenues from operations

0(FY)

and operating income.

100
80

20
0

ons areunt
egment.

85.6

40

Real Estate(¥ billion)
120

state

90.0

60and efforts to improve profitability leading to higher operating
30(YoY ‒25.4%)

Revenues from operations (left axis)

83.7

80Preventing the halt of76.2
40
distribution as an essential industry,

Note: Figures for percentage of revenues from operations arecalculated based on the simple aggregate amount(including intersegment transactions) of each segment.

ortation(¥ billion)
60

Fiscal 2021 Review of Operations

Consolidated
revenues fromoperations

83.7

2.8
2018

90.0

2.4
2019

76.2

85.6

2.3

0.2
2020

2021

87.0

2.8
2022
(Estimate)

Note: The anticipated full-year results for FY2022 are based on
information announced on July 30, 2021.

andoverseas,

andincorporatedtheemergency

Additionally, we have been working to expand our distribution
warehouses in the ASEAN region, strengthen our logistics
business, and further expand our global network.

Fiscal 2022 Outlook and Forward Direction
Expanding the scope and volume of items handled andpushing structural reforms for sustainable growthIn fiscal 2022, we foresee air transportation recovering from the55

Hankyu Hanshin Holdings Integrated Report 2021

declining impact of the COVID-19 pandemic, leading to year-on-

and logistics, and utilize IT and other technologies to bring about

year increases in revenues and income.

operational reforms, pushing ahead to achieve structural reforms,

Going forward, to achieve sustainable growth we will work tobasic policy goal.

expand handling and the volume of our air and ocean transport■ Expansion of our global network, strengthening of our logistics business
Narita Global Logistics Center commences operations
ProfileThe former Hankyu Hanshin Narita Cargo Terminal was relocated to the warehouse built by Seino Transportation*
adjacent to Narita International Airport. By cooperating with the Seino Transportation truck terminal, we haveestablished a logistics hub that combines international transportation, logistics, and domestic transportation, and allows
us to oﬀer a comprehensive range of seamless transportation services. Since the facility s opening, we have acquired newclients and the volume of goods handled is steadily growing.
*A company of the Seino Holdings Group, which entered into a capital and operational tie-up with Hankyu Hanshin
Express in 2018.

Amsterdam

LondonParis
Dusseldorf
Praha

Hong Kong
MoscowFrankfurt

Beijing
Guangzhou

Milan

IncheonBucheonSeoul

Hai Phong

Delhi

Bawal

Ahmadabad

KampalaEntebbeNairobiMombasa

Dubai
MumbaiPune
ChennaiBangalore
Coimbatore
ButterWorthPenangHanoi
Bangkok
Chiang Mai

YangonManilaChicago
McAllenMonterrey
Bajio

Kaohsiung
Taichung
Cebu
Laem Chabang
Binh Duong
Ho Chi Minh
Phnom Penh

Miami

Atlanta
Dallas● Local subsidiary● Branch/Oﬃce● Representative oﬃce

Mexico City

Sao Paulo

Pasir Gudang

Kuantan

Port Klang

DurbanDanangLos Angeles
Busan

DetroitToronto
New York
BostonCincinnati

Creating Real Value:
Our Story

Johannesburg

ShanghaiTaipeiJakarta
Singapore

Kuala Lumpur

SeattleSan Francisco

Number of locations: 50 inJapan, 134 outside Japan(as of September 1, 2021)

Messages fromthe Top Management

Rotterdam
BrusselsJohor Bahru

Cape Town

Strengthening business development in
AfricaExpansion of our Asian network, rollout
of logistics centers

Strengthening our business in North andCentral America

In April 2018, we acquired Intraspeed South Africa(Pty) Ltd., a freight forwarder, as a subsidiary; wealso acquired Intraspeedʼs two companies in Kenya
and Uganda as subsidiaries. Today, we continue toreinforce our operations in Africa.

In addition to new warehouses in Indonesia (2016)
and Singapore (2017), we have opened newwarehouses in India, Vietnam and Myanmar, andestablished an oﬃce in Kuantan, Malaysia. In theseand other ways we are further enhancing ourlogistics structure and expanding our global
network in growth markets.

In addition to expanding our locations in Mexico,
we are increasing and expanding our warehouses in
the USA. Our policy is to strengthen our logistics
services in Central and South America from ourbase in Miami.

Creating Real Value:
The Processes■ Air and sea freight volumes(total handled by Japanese and overseas companies in the International Transportation Business)
Air Export Freight Weight

TEU*-Measured Overseas Export Volume(1,000 t)(1,000 TEU)

160
120

121 117 115

128

115 12180

160

141 148
107

120

93

80

0

79

98

95

103

111 113

121 119

Creating Real Value:
The Foundations

40

76

92

40

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(FY)

0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (FY)*TEU: “ Twenty-foot equivalent unit,” a unit of cargo capacity based on the volume of
a 20-foot-long container

Main Efforts Based on Priority Issues for Sustainable Management (International Transportation Business)

Safe, reliableinfrastructure
Reason for action plan
based on opportunity
and risk

Safe, reliableinfrastructure
Reason for action plan
based on opportunity
and risk

Action plan

• Prepare a BCP

Non-financial KPIs
Rate of existence of
BCP

Target values

100%

Scope
Hankyu Hanshin Express
Hankyu Hanshin Logipartners

Financial Section andCorporate Data

Priority issues

FY2021 Actual record
Preparation completed byboth companies

To build systems that prevent the stoppage of distribution as an essential industry, even if an accident or natural disaster occurs, thereby
increasing trust in the business and benefiting society• Improve the qualityof customs
clearance services

Rate of customs errors

About 0.1% maintained,
which is lower than theindustry average (0.3%)

Hankyu Hanshin Express

0.05%

To pursue protective measures at ports and airports as a customs broker, thereby helping to maintain safety and security in society

Hankyu Hanshin Holdings Integrated Report 2021

56

Creating Real Value: The Processes

Business Strategy

HotelsJapan’s leading hotel chain
operator■ Basic Policies

Business Environment

Carry Out Structural Reforms (See page 16 for more details.)❶ Strengthen business competitiveness
Concentrate management resources and strengthen businesscompetitiveness through specialization

Revise cost structure at existing hotels and improve efficiency of
their business operations

decimating the hotel business.

Urban
Transportation

Other

TravelInformation andCommunication
Technology
Entertainment

On from
the operations
bright side,
mediumto longterm, the
Revenues(left overaxis) theOperating
income(right axis)
COVID-19 pandemic will come to an end and the movement of(¥ billion)(¥ billion)60
120
people globally will gradually rebound. Major events suchasConsolidated
revenues fromoperations

50 the100
EXPO 2025 in Osaka, Kansai will play a role in expanding¥ 568.9 billion

80
demand for accommodations going forward.
60(YoY ‒25.4%)

20

19.1

10

2.2

lower revenues and income(¥ billion)
60

-10
-3.1
In fiscal 2021, the business climate became very tough dueto the
-20
-15.7
-17.9
spread of COVID-19, and in both the accommodation and food/
2018

2019

2020

2021

2022

(FY)

(Estimate)beverage businesses there was a huge drop-off
in customers overNote:theTheyearanticipatedfull-year
resultsfor FY2022
are basedonand some
hotelswereeven closed
temporarily.
information announced on July 30, 2021.

In these circumstances, the Takarazuka Hotel, as the official

50

80

40

hotel of the Takarazuka Revue, was opened in a new location in

30

June based on the concept of “The Dream Lives On.”20

construction proceeded on our second “remm plus” hotel—remm

10plus Kobe Sannomiya—to open in April 2021. The two hotels are0

designed to bolster our competitiveness.

67.2

64.9

60.3

40
20
0

ons areunt
egment.

30

100

60

state

40

60.3

A steep decline 1.2
in customers due to the pandemic 0
led to0Operating income (right axis)(¥ billion)
120

64.9

Fiscal 2021 Review of Operations
28.5

20

Revenues from operations (left axis)

67.2

40

Real Estate

Note: Figures for percentage of revenues from operations arecalculated based on the simple aggregate amount(including intersegment transactions) of each segment.

ortation

tourism, and competition among hotels had become increasingly
movement and related factors severely curtailed demand,

Fiscal 2021 Breakdown of revenues from operations

International
Transportation

started before the pandemic to accommodate growing inboundfierce. Then the pandemic hit and restrictions on people’s■ Revenues and Income

3.1%

In the domestic hotel market, particularly in the Kansai region,
there had been an ongoing scramble to open new hotels that❷ Improve viability of hotels

HotelsDemand plummeted due to the pandemic, but business will
likely pick up as demand recovers when it ends

19.1
2.2

28.5

1.2
-3.1

2018

2019

2020

-17.9

2021

-15.7
2022
(Estimate)

Note: The anticipated full-year results for FY2022 are based on
information announced on July 30, 2021.

Also,

-10

However, as noted above, the impact of the pandemic and-20

other factors caused a significant decline from the previous year

(FY)

in revenues from operations and operating income.

Fiscal 2022 Outlook and Forward Direction
Steady structural reforms will continue, aimed at improving
results and boosting business competitivenessIn fiscal 2022, some degree of recovery from the effects of thepandemic is anticipated in both the accommodation and food/57

Hankyu Hanshin Holdings Integrated Report 2021

beverage businesses, which will translate into higher revenues

avoiding physical contact and congested spaces, thereby boostingand income over the previous year. Although inbound demand is

our business competitiveness.

not expected to rebound within the fiscal year, demand in boththe accommodation and food/beverage businesses is expected
to start recovering gradually toward the end of the year.

■ Non-Japanese guests as a percentage of overnight-stayguests at Hankyu Hanshin Hotels*1（%）
50reforms to improve results as early as possible. We are also

40

38.1

studying how to integrate ICT and are working to optimize

30

personnel to achieve greater efficiencies and higher productivity.

37.0

20

Other measures will include rigorously implementing revenue

Tokyo metropolitan area*²0adjustments to meet the requirements of the “New Normal” for

42.3
40.6

44.8

39.9

37.6

Total company-wide percentage
for FY2021 is 0.7%*⁵(‒38.8 points from previous year)10

management to bolster our earnings capacity, plus making

Kansai area*³

45.6

ProfileHankyu Hanshin Hotels are steadily implementing structural

2017

2018

2019

2020

1.9
0.4
(FY)
2021
Messages fromthe Top Management■ Average daily rates (ADR) and guest room occupancy rates*¹ of Hankyu Hanshin Hotels in the Tokyo metropolitan
area and Kansai area
ADR (Tokyo metropolitan area)*²

ADR (Kansai area)*³

Occupancy rate (Tokyo metropolitan area)*²(yen)
20,00016,00012,000

95.4

94.3
90.8
16,66514,14088.7
15,44913,549

90.9

80.6
79.7

90.9

16,654*

4

13,748*

4

Total company-wide percentage
for FY2021*⁵• Occupancy rate: 24.8%(‒55.3 points from previous year)• ADR: ¥10,455(‒¥3,123 from previous year)

11,83010,287

16,167
12,550

0

40
20

16.8
2017

2018

2019

2020

80
60

28.9

4,000

（%）
100

Creating Real Value:
Our Story

8,000

Occupancy rate (Kansai area)*³

0

2021

(FY)

*1 The data omits the COVID-related temporary closures of some hotels.
*2 Directly managed by Hankyu Hanshin Hotels in the Tokyo metropolitan area
*3 Directly managed by Hankyu Hanshin Hotels in the Kansai area
*4 Starting in fiscal 2020, we report the earnings of overseas online travel agents on a gross basis, rather than on a net basis as before. The new method (gross basis) has been
applied retroactively to the previous fiscal year.
*5 Including remm Kagoshima

Creating Real Value:
The Processes

Main Efforts Based on Priority Issues for Sustainable Management (Hotels Business)
Priority issues

Safe, reliableinfrastructure

Safe, reliableinfrastructure

Environmental
protection

Reason for action plan basedon opportunity and risk

Environmental
protection
Reason for action plan basedon opportunity and risk

Target values

Scope

Number of serious
culpable incidents
related to listing offoods

Zero, ongoing

HankyuHanshinHotels

FY2021 Actual record

0 incidents

To make an active and ongoing effort to label foods properly in order to provide customers with safe food, thereby helping to build trust in
the Group and bolster our brand value• Enhance collaboration with local governments• Prepare stockpiles of items for disaster
preparedness and establish a system for
managing them
• Prepare a response manual for when lifelines get
cut off• Prepare a response manual for how to evacuate,
the location of evacuation shelters, etc.

Prepare stockpilesof items for disaster
preparedness

Secure a 3-day
supply for
employees andguests (fiscal
2031)

HankyuHanshinHotelsSecure a 3-day supply for
employees

To strengthen risk countermeasures in times of emergency and create an environment in which customers can feel safe at a hotel, thereby
helping to build trust in the Group and bolster our brand value• Reduce food waste (repurpose waste from foodpreparation, adjust serving methods,
arrangement)• Set up systems regarding waste volume• Carry out waste reduction and recycling• Biodegrading food waste disposer

Volume of foodwaste

–50% comparedto fiscal 2014
(fiscal 2031)

HankyuHanshinHotelsFinancial Section andCorporate Data

Reason for action plan basedon opportunity and risk

• Manage use of “select ingredients” listed onmenus• Train employees on menu creation and item
listings• Comply with designated system of checks

Non-financial KPIs

Creating Real Value:
The Foundations

Reason for action plan basedon opportunity and risk

Action plan

–62% compared to fiscal 2014
Note: Fiscal 2021 reduction
due to COVID-related
temporary closures of some
hotels (Reference: Fiscal 2020)–14% compared to fiscal 2014

To actively work to reduce food waste as an enterprise that handles food at a time when food waste is becoming an increasing concern,
thereby helping to build a sustainable society• Consider no longer offering disposable plastic
items• Choose products made from alternative materials

Number of
disposable plastic
items in guest rooms–50% comparedto fiscal 2020
(fiscal 2031)

HankyuHanshinHotelsNew targets set in fiscal 2021
Achieve in steps from fiscal
2022 onTo actively work to reduce plastics at a time when microplastics are polluting the environment and there is rising interest in getting rid ofplastics worldwide, thereby responding to customers’ wishes and helping to build a sustainable society

Hankyu Hanshin Holdings Integrated Report 2021

58

Creating Real Value: The Foundations

G

Priority Issue 6

Robust governance

Governance

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

Basic Approach
The Company aims to remain a company that customers and other stakeholders trust. To this end, the Company is strengthening
and increasing corporate governance by heightening the transparency and soundness of business management, complying with
relevant laws and regulations, and ensuring appropriate, timely disclosure.
Reflecting this basic approach, the Company has established the policies below with a view to adhering to the principles of our
Corporate Governance Code, sustaining growth, and enhancing corporate value over the medium to long term.
(1) We shall respect shareholders’ rights and ensure equality.
(2) We shall take into consideration the interests of shareholders and other stakeholders and cooperate with them appropriately.
(3) We shall disclose corporate information appropriately and ensure transparency.
(4) We shall ensure that the Board of Directors performs its roles and duties appropriately and ensure advanced oversight anddecision making.
(5) We shall have constructive dialogue with shareholders with a view to sustaining our growth and enhancing corporate value
over the medium to long term.

■ Corporate Governance System
General Meeting of Shareholders
Corporate
GovernanceCommittee

Directors(excluding Audit &Supervisory Committee
Members)

Consultation

Compensation
Committee

Appointment/Dismissal

Appointment/Dismissal

Appointment/Dismissal

Board ofDirectors

Audit & Supervisory Committee

Audits, etc.

(Audit & Supervisory
Committee Members)

Call/Report on
execution situation

Accounting audit

Accounting
Auditors (CPAs)

ReportDirectors

Staff of Audit &Supervisory
Committee

Selection/Dismissal/Supervision
ReportRepresentative Director
CallParticipate(as observer)Group Management Committee

Group
Auditing Division

ReportAudit

Participate

Group Companies*The Hankyu Hanshin Holdings Group takes practical steps to enact all of the principles stipulated in the Corporate Governance Code. For examples of specificaction and other items relating to corporate governance, please refer to the Corporate Governance Report in the sustainability section of the Group’s website.
https://www.hankyu-hanshin.co.jp/download/sustainability/materiality/corporate/governance/info_governance.pdf (Japanese only)
Independent director

Board of Directors (11 members)

Corporate Governance Committee (9 members)

Chairman of
the Board

Kazuo Sumi

TakehiroSugiyama

Masao Shin

Yoshishige
Shimatani

Naoya Araki

Noriyuki
Inoue(Manager)

Noriko Endo Yuki Tsuru(Academic) (Attorney at
law)

Kazuo
Sumi

TakehiroSugiyama

Audit & Supervisory Committee (3 members)

Masao
Shin

Masayoshi
Ishibashi

Noriyuki
Inoue

Noriko
Endo

Yuki
Tsuru

Junzo
Ishii

Michiari
Komiyama

Compensation Committee (6 members)

Chair

Masayoshi Ishibashi

Junzo Ishii(Academic)

Michiari Komiyama(Attorney at law)

Kazuo
Sumi

Noriyuki
Inoue

Noriko
Endo

Yuki
Tsuru

Junzo
Ishii

Michiari
Komiyama(See pages 67–68 for more details about Directors and Audit & Supervisory Committee Members.)

59

Hankyu Hanshin Holdings Integrated Report 2021

Governance Structure■ Overview of Hankyu Hanshin Holdings’ and theGroup’s Corporate Governance Structure

receives reports. Moreover, to undertake preliminary reviews theCompany has established a Group Management Committee,
which includes representatives of the Group’s core businesses.
Further, to ensure transparency in the appointment anddismissal of the Company’s directors and to facilitate coordination
with outside directors, the Group has established the Corporate
Governance Committee, which comprises standing Audit &conduct of operations is basically the responsibility of Group

Supervisory Committee members, and outside directors who aremember companies. Hankyu Hanshin Holdings’ principal role isindependent of the Company, and representative directors.

supervision and oversight of the entire Group—meaning that

Moreover, to ensure that concrete decisions regarding thethese functions are separate from the conduct of Groupamount of director compensation (excluding that of members ofbusinesses.

the Audit & Supervisory Committee) under the responsibility ofThrough this system, the Company realizes supervision and

the Board of Directors, are made based on objective andtransparent

retaining the authority to approve the Company’s and theCompensation Committee comprising the chairman (or theprocedures,theCompanyhasestablishedaGroup’s management policies and strategies, and the medium-president, in the chairman’s absence or unavailability) andterm or annual management plans of all core businesses;

outside directors who are independent of the Company.

requiring timely submission of progress reports by operating

In addition, as part of efforts to strengthen its overall

companies; and having Group companies obtain approval from,capabilities, the Company is strengthening the governance ofor report to, Hankyu Hanshin Holdings before taking actions thatfunding.

affect the Group’s management significantly (for example,

Company, as a rule, and distributing funds to operating companies

investments above a certain threshold).

within the limits set out in business plans that the Company has

Measuresincludecentralizing

funding

under

Messages fromthe Top Management

oversight and enhances the overall governance of the Group by:theapproved.

Creating Real Value:
Our Story

With regard to the above matters, the Board of Directors,

ProfileHankyu Hanshin Holdings, Inc. is a pure holding company, and thewhich includes outside directors, makes approval decisions andProportion of
independent officers■ Recent Efforts to Strengthen Corporate GovernanceCorporate Governance Committee established
FY2016• Charged with ensuring transparency of corporate director appointments and dismissals and facilitating
coordination with outside officers. Committee meets twice a year, and comprises the representative
directors, standing auditors (standing Audit & Supervisory Committee members since June 2020), and

5/18
27.8%

outside officers.

• A survey was carried out to assess the management by the Board of Directors, including the sufficiency
of its explanations and the appropriateness of its handling of its proceedings. (Starting in fiscal 2021,

Creating Real Value:
The Processes

Evaluation of the Board of Directors’ effectiveness
FY2017

5/19
26.3%

interviews are preceded by questionnaires for more effective assessment.)

5/14
35.7%

Abolition of senior advisors system

Abolition of anti-takeover measures and Compensation Committee established
FY2019• Charged with ensuring that the objectivity and transparency of procedures relating to decisions regarding
board members’ remuneration, including amounts. Committee meets once a year, and comprises theCreating Real Value:
The Foundations

FY20185/14
35.7%

chairman and outside officers.

• Stock-based, performance-linked stock compensation system (paid into trust) introduced for thechairman and president in order to further motivate them to enhance the Company’s corporate value andFinancial Section andCorporate Data

Review of compensation system
FY20206/14
42.9%

business performance, as well as to enhance shareholder value.

Change in legal status regarding audit function• Became a “Company with an Audit & Supervisory Committee” as part of efforts to bolster the Board of

FY2021

Directors’ oversight function and enhance corporate governance.
• Upon that change, the number of company officers was reduced to 11 and the number of independent

5/11
45.5%

directors was made five (including two women) in order to increase the proportion of independent
officers.

Hankyu Hanshin Holdings Integrated Report 2021

60

Creating Real Value: The Foundations
Priority Issue 6

Robust governanceMore Transparent Management andEffective Governance■ Management Organization for Decision Making,Execution, and Oversight of Matters Related toCompany Management
Board of Directors and Directors
The Board of Directors enhances governance of the entire Groupand oversight of respective companies by: retaining the authority
to approve decisions regarding the Company and the Group’s■ Membership of the Audit & Supervisory Committee
Audit & Supervisory Committee
Total committee members

3

Full-time committee members

1

Internal directors

1

Outside directors

2

Committee chairperson

The internal director

Directors and employees
assigned to aid the duties of
Audit & Supervisory Committee
members

Staff assigned
exclusively to thispositionmanagement policies and strategies, and the medium-term or
timely reporting by operating companies about Group companies’

Corporate Governance Committee (voluntarily establishedcommittee equivalent to a nominating committee)

significant investments.

To ensure transparency in the appointment and dismissal ofannual management plans of all core businesses; and requiring

In order to reinforce governance and oversight capabilities

directors and coordination with outside directors, a Corporate

and boost decision-making quality, the Board of Directors isGovernance Committee has been established, made up of threecomposed of 11 directors, five of whom are independent

representative directors, one full-time Audit & Supervisory

directors, including two women. Moreover, the 11 directors

Committee member, and five independent directors.

include all three members of the Audit & Supervisory

director candidates and the dismissal of directors (excluding■ Membership of the Board of Directors, etc.

Audit & Supervisory Committee members), the Corporate

Maximum number of directors
stipulated in articles ofincorporation

No upper limit stipulated

Term of office stipulated inarticles of incorporation

1 year (2 years in the case of
Audit & Supervisory Committee
members)

Chairman of the board

Chairman

Number of directors

11

Appointment of outside directors

Appointed

Number of outside directors

5

Among outside directors, numberof independent directors

5*1 Quorum of directors: The Company’s articles of incorporation stipulatethat a quorum shall be reached with at least four directors and at least
three Audit & Supervisory Committee members.
*2 Criteria for appointment of directors: Criteria for appointment of directors
are stipulated in the Company’s articles of incorporation as follows:(1) Directors shall be appointed at shareholders’ meetings into two
distinct categories: Audit & Supervisory Committee members andothers.
(2) Resolutions on the appointment of directors shall be passed with amajority of voting rights held by shareholders in attendance, provided
that those in attendance constitute no less than one third of allshareholders with voting rights.
(3) Resolutions on the appointment of directors shall not be conductedby cumulative vote.

Audit & Supervisory Committee and Its Members
Of the Audit & Supervisory Committee’s three members, two are
independent directors. By selecting committee members whoare independent from the Company and have a high level of
specialist expertise, the Company endeavors to further ensure
sound decision making. We provide full backup to enable the
Audit & Supervisory Committee members to perform theirgovernance and oversight functions, for example by involving
them in the Group Management Committee and other meetings
within the Group.

61

In addition to providing advice relating to the selection ofCommittee.*1, 2

Hankyu Hanshin Holdings Integrated Report 2021

Governance Committee serves as a forum to provide informationin such areas as the Group’s finances to outside directors.

Compensation Committee (voluntarily established)
To ensure that concrete decisions regarding the amount ofcompensation paid to directors (excluding Audit & Supervisory
Committee members), which are the responsibility of the Boardof Directors, are made based on objective and transparent
procedures, the Company has established a Compensation
Committee comprising the chairman and five independent
directors.
The committee provides advice relating to the Company’scompensation system and its content.

Group Management Committee
The members of the Group Management Committee include fulltime directors (excluding Audit & Supervisory Committee
members)andexecutive

officersoftheCompany,

andrepresentatives of each of the Group’s core businesses. The
committee meets to deliberate and decide on the approval ofresolutions of the Board of Directors; the Group’s management
strategies and business plans; Group companies’ significant
investments; and significant Group management matters.

■ Ensuring Effectiveness of the Board of Directors and Audit & Supervisory Committee
Attendance at meetings of the Board of Directors and Audit & Supervisory Committee, and Board of Company Auditors byoutside directors (FY2021)
Attendance (times attended/times held)
Name

Position

Board ofDirectors

Audit &
Supervisory
Committee

Board ofCompany
Auditors

Noriyuki Inoue

Director

10/10

ー

ー

Instructive comments made from a corporate manager’s
perspective, based on a wealth of management experience

Noriko Endo

Director

10/10

ー

ー

Instructive comments based on a wealth of experience and knowledge
gained through research into public and government policy

Director

8/8

ー

ー

Instructive comments from a compliance perspective

10/10

9/9

2/2

Instructive comments from a management studies expert’s perspective

10/10

9/9

2/2

Instructive comments from a compliance perspective

Junzo Ishii
Michiari Komiyama

Messages fromthe Top Management

Director and Audit &Supervisory Committee member
Director and Audit &Supervisory Committee member

ProfileYuki Tsuru

Statements at Board of Directors meetings, etc.

*On June 17, 2020, with the conclusion of the 182nd General Meeting of Shareholders, we became a company with an audit and supervisory committee. The
chart above details attendance for both the pre-transition Board of Corporate Auditors and the post-transition Audit & Supervisory Committee.
*The office of the Board of Directors assists outside directors and the office of the Audit & Supervisory Committee assists outside directors who are Audit &Supervisory Committee members; in particular, the office of the Audit & Supervisory Committee is staffed with dedicated staff. Moreover, the office of the Boardof Directors sends out materials relating to motions to be tabled at board meetings, in principle around seven days before the meeting date, as well as its otheractivities to enhance outside directors’ supervision and oversight functions.

Evaluation of the Board of Directors’ effectiveness

Compensation System

The Company conducts evaluations of the board’s effectivenessat the board meeting held in April every year.

■ Compensation of Directors
Policy2021 is as shown below.

The Company’s compensation system for directors (excluding

1. Evaluation process

Audit & Supervisory Committee members) further motivatesthem to enhance the Company’s corporate value and businessIn fiscal 2021, the board’s effectiveness was evaluated by

performance,

conducting a questionnaire survey regarding the adequacy of theCompensation

board’s composition and operations, followed by interviews withcompensation paid according to position and stock-based,board members based on the questionnaire’s results.

performance-linked

As a result of the questionnaire and interviews, the board’s
composition and operations in fiscal 2021 were deemed to beadequate, and the evaluation concluded that the board was
effective and generally administered appropriately.
Conversely, it was suggested that the information provided inadvance about matters tabled at board meetings could be more
extensive.

Governance Systemastoenhancecomprises

well

two

elements:

stock

shareholder

compensation

basic
paid

in

value.

monetarytrust

toindividuals in the posts of chairman and president.
*The group’s stock-based, performance-linked stock compensation system
includes a malus clause, under which rights to receive stock-based
compensation may be withheld from any person eligible for this system
who commits an egregious breach of duty prior to finalization of suchrights, or if any other grounds for withholding such rights arise.
*The payment of retirement benefits to directors was discontinued in April
2004 to heighten transparency of the compensation system.

Procedure
Based on the foregoing policies, to ensure that concrete decisions

Creating Real Value:
The Foundations■ Reasons for Adoption of Current CorporateasCreating Real Value:
The Processes

2. Evaluation items

Creating Real Value:
Our Story

A summary of the process, items, and results of an evaluationof the effectiveness of the Board of Directors conducted in fiscal

regarding the amount of director compensation, which are theresponsibility of the Board of Directors, are made based on
objective and transparent procedures, the Company has
established a Compensation Committee comprising the chairman

the Group’s Corporate Governance Structure on page 60, Hankyu(or the president, in the chairman’s absence or unavailability) andHanshin Holdings, Inc. is a pure holding company, and thefive independent directors. The Board of Directors makes

conduct of operations is basically the responsibility of Group

compensation decisions after consultation with the Compensation

member companies. Hankyu Hanshin Holdings’ principal role isCommittee concerning the compensation system and content ofsupervision and oversight of the entire Group—meaning thatcompensation.

Financial Section andCorporate Data

As described in the Overview of Hankyu Hanshin Holdings’ andthese functions are separate from the conduct of Groupbusinesses.
In addition to this, the Company shifted to an Audit &Supervisory Committee set-up in order to reinforce that corporate

Other Efforts to Strengthen Governancegovernance structure and further enhance corporate value. The

Position regarding strategic shareholdings

shift was approved by a resolution at the 182nd annual General

The Company acquires shares held for strategic reasons with a

Meeting of Shareholders on June 17, 2020.

view to building relationships of trust with various stakeholders
and enhancing corporate value over the medium to long term by
maintaining business relationships or strengthening collaborations
with partner companies and maintaining relationships with
regional communities.

Hankyu Hanshin Holdings Integrated Report 2021

62

Creating Real Value: The Foundations
Priority Issue 6

Robust governanceforWith regard to systems for “Evaluation and Auditing of Internal

appropriateness each year by the Board of Directors, taking into

Individual

strategic

shareholdings

arereviewed

Controls over Financial Reports,” a section of the Financial

account economic rationales such as dividend income. Where aInstruments

given holding is deemed no longer appropriate, it is soldappropriately by carrying out management evaluations on a

progressively, with comprehensive consideration of factors suchconsolidated basis, in line with in-house rules.

andExchange

Act,

the

Company

responds

as the Company’s financial circumstances and the influence of■ Basic Approach to Eliminating Anti-social Forces

stock sales on market conditions.

■ Strategic Shareholdings Held (Taking FY2016 final levels as 100)and the Progress of its Development

We have a clear policy of thorough rejection of any involvement100with organized crime groups, companies connected with

80

organized crime groups, sokaiya racketeers, or other “antisocial

60

forces” that threaten the order and safety of civic society, and40

firm refusal of their unreasonable demands.

20

To ensure full awareness of this policy throughout the entire

0Group, it is instituted in the Basic Policy on the Establishment of
2016

2017

2018

2019

2020

2021

(end of ﬁscal year)

Abolition of anti-takeover measures

the Internal Control System and clearly set forth in the Hankyu
Hanshin Holdings Group Compliance Handbook distributed to all
Group directors and employees.

After considering recent trends related to such measures andIn practice, we cooperate closely with lawyers, police, andchanges in the business environment, the Company has decided

other organizations, and all Hankyu Hanshin Holdings Groupto abolish anti-takeover measures that have already been set tocontracts contain clauses banning involvement with antisocial

expire at the conclusion of the General Meeting of Shareholders

forces.

held in June 2018.

We also share relevant information between Group companies,
maintain high awareness of issues through employee training,and participate proactively in community meetings and activities

Internal Control System■ Basic Approach to Internal Control System and
the Progress of System Development

Recognizing the importance of ensuring that the businesspertaining to the elimination of organized crime and other
antisocial forces.
If an incident occurs, we take a pan-organization approach inresponse, bringing in the relevant in-house departments andteaming up with outside experts.

operations of the Company are conducted in an appropriatemanner, we believe it is vital to have an internal control system
for the entire Group, and to revise it when deemed necessary.
In particular, the Group has a robust structure for compliance-

Corruption Prevention and Compliancefocused management, including a dedicated compliance office, a

We at the Hankyu Hanshin Holdings Group are constantly striving

Compliance Manual, and compliance training, all aimed at raising

to live up to the stakeholders’ expectations and become a good,awareness of compliance issues throughout the entire Group.

trustworthy organization. Our strong focus on compliance is one

As part of our whistleblower system, we have a Corporateof the pillars underpinning our efforts in this area.

Ethics Consultation Desk for quickly bringing our attention to any
incident that may threaten our compliance-focused management.
If a serious incident occurs, we promptly set up a risk management■ Organizational Initiatives for Better Compliancecommittee to determine how to respond.

We have established a dedicated compliance office in the

We also have a Group Auditing Division, which has its own

Personnel and General Affairs Division to help bolster compliancededicated staff and operates under the direct control of thegroupwide by pursuing three main initiatives as set forth below.

president. This division establishes regulations and conducts

Moreover, the Board of Directors conducts biennial reviews tointernal audits of Hankyu Hanshin Holdings and its Group

monitor compliance with the Code of Conduct, mainly involving

companies. Specifically, each of the Group’s businesses auditsquestionnaire surveys of employees.

compliance with laws and internal regulations—and other priority
themes to be tackled—as well as risks peculiar to their own

1. Raising Awareness via the Compliance Handbook

businesses, based on both the Group Management Philosophy

The Compliance Handbook makes clear to all the Group’s(particularly the Principles) and groupwide annual auditing

directors and employees that violations of law or social norms, or

policies and plans.

actions that betray customer trust, are prohibited, and provides

To create a structure for ensuring appropriate operations, thehandy examples of likely scenarios. In this way, the manual is partGroup vests auditors of each Group company with authority notof our effort to raise awareness of the importance of compliance.

only in accounting but also in operational audits, and at the sametime provides guidance to smaller Group companies on Board of
Directors’ resolutions for the creation of an internal control
system.

63

Hankyu Hanshin Holdings Integrated Report 2021

3. Other Initiatives

Compliance Handbook Content

In the case of identification of a major compliance issue during

Hankyu Hanshin Holdings Group Management

the course of an ethics consultation, a risk management committee

Philosophy

is convened as soon as possible to discuss and decide on

Mission, Values, and Principles

appropriate responses.

Compliance as a Member of Society･ Environmental Activities･ Social Activities･ Respect for Human Rights

other companies to ensure our response is on a Group-widebasis.

Overview of Group ComplianceHankyu Hanshin Holdings●Information to Group companies●Guidance and training for Group
companies●Risk management●Risk Management Committee
secretariat●Corporate Ethics Consultation
Desk(internal whistle-blower
procedures)●Internal auditing

Core companies
Compliance promotion oﬃce

Internal whistle-blowing, responsible forplanning and organizing seminars andother awareness-raising activities

Other Group companies
Complianceleaders

Liaise with compliancedepartments of corecompanies

The Corporate Ethics Consultation Desk comprises an in-house■R aising Awareness Among All Officers and Employees

section and an external section, which is staffed by outside

We seek to raise awareness among all Group officers andlawyers. It enables all Hankyu Hanshin Holdings Group officers

employees regarding compliance issues through a variety ofand employees, as well as the group’s business partners, totraining activities and communication as described below.

report—anonymously—behavior that violates (or may violate)laws or regulations, or is otherwise unethical.
Furthermore, the desk reports each year to the Board of
Directors on the consultations it has received.
werereceivedinfiscal2021

fromthroughout the whole Group.
Our efforts surrounding the Corporate Ethics Consultation
Desk have been praised and in October 2020, we received
Whistleblowing Compliance Management System* certification.

1. Training• New recruit training, training upon promotion• Training upon first appointment to director or auditor position
at a Group affiliate

Creating Real Value:
The Processes

reports

Creating Real Value:
Our Story

2. Corporate Ethics Consultation Desk(Internal Whistle-Blower Procedures)

Forty-eight

Messages fromthe Top Management

Compliance for the Interest ofBusiness Partners･ Sincere Trading･ Proper Use of Intellectual
Property･ No Involvement with Anti-Social
Forces･ No Bribery or Excessive
Entertainment

Compliance in Workplace･ Good Working Environment･ Clear Distinction Between Work
Spending and Private Spending･ Observance of Decision-Making
Procedures

In addition, we are setting up compliance promotion offices atmajor Group companies and appointing “compliance leaders” at
ProfileCompliance for the Interest of
Shareholders･ No Inappropriate Accounting･ No Insider Trading

Compliance for the Interest of
Customers･ Customer Safety First･ Sincere Response to
Customers･ Observance of Rules･ Proper Treatment of Personal
Information･ Proper Disclosure･ Act as a Sensible Member ofSociety･ Proper Use of SNS• Collective training for Group companies’ compliance officers• On-site training at Group companies

2. Communication• Compliance-related serials in Group magazines• Compliance-related e-mail newsletter featuring case studies■ Corporate Ethics Consultation Desk

and updates regarding laws and regulations

Reports

Creating Real Value:
The Foundations

Audit &
Supervisory
Committee
members• Compliance-related information posted on the Group intranet■ Thorough Corruption Prevention
Our corruption prevention extends not only to banning bribery of
public officials, we are also thorough in ensuring treatment that
could be construed as excessive entertaining does not occur.

Consults

Consulter
Responds

Consultation
Desk

Reports

Departments/Group
companies

This is equally true overseas, where we make sure to grasp
business practices in each country and raise awareness so as not
to do anything that might invite suspicions of bribery or othercorrupt practices.

Financial Section andCorporate Data

Investigates

President

As part of our corruption prevention measures, in May 2021,
we announced our agreement with the United Nations Global
Compact; we are pushing forward with corruption prevention
activities based on the compact tenth principle: “Businesses
should work against corruption in all its forms, including extortionand bribery.”*A certification system introduced by theConsumer Affairs Agency to improve theeffectiveness of companies’ internal
whistle-blowing systems.

Hankyu Hanshin Holdings Integrated Report 2021

64

Creating Real Value: The Foundations
Priority Issue 6

Robust governance◦ Avoiding scheduling clashes with other companies

Risk Management Structure

The General Meeting of Shareholders held in June 2021 took
place on June 16, 13 days before the day on which otherWe have established a risk management structure to help

companies held their own meetings.

maintain the health of the Group’s management by preventing
risks from becoming reality, and at minimizing the damage if they

◦ Exercising voting rights via electronic meansdo. Specifically, the Group has established a dedicated risk

We have allowed votes to be cast online via a designated voting

management office in the Personnel and General Affairs Divisionwebsite.

to oversee groupwide risk management. The office is responsiblefor determining and analyzing pan-organizational risks, while◦ Entry into an electronic voting platform

business departments and group companies do the same forEfforts to improve the environment in which other institutionalrisks inherent to their own organizations. The Group has also set

investors exercise their voting rights

up a framework that enables the correct dissemination of

We belong to an electronic voting platform run by ICJ, Inc. We

information if an unforeseen incident occurs.

also post convocation and resolution notices (including English

Under this framework, each Group company conducts anversions) on our website.

annual risk survey that brings to light, specifically, risks related tonatural disasters (including infectious diseases), accidents,◦ Providing convocation notices (digest version) in English

information management, compliance, and other organizational

We create English versions of convocation and resolution notices.

management risks. An appropriate response is then determinedfor each.

◦ IR activities

If a serious risk situation materializes, a Crisis Response Team,We engage with investors in a variety of ways, including

headed by the president, is formed to contain the damage

briefings—attended

spreading and minimize the fallout.

institutional investors regarding the mid-year and year-end

by

the

president—for

analysts

andThese principles and actions are prescribed in our Risk

results, and dedicated investor relations staff in the GroupManagement Regulations, and a report on risk analyses andPlanning Division respond to investors’ inquiries. The feedback

responses is, in principle, presented to the Board of Directors

we get from investors is shared in-house and reflected in business

annually.

management.

Moreover,the

Corporate

Sustainability

Committee

also

deliberates climate-change-related issues (see page 31) and theRespecting Stakeholders’ Positions

contents of these deliberations are shared with the risk

Realizing our mission to create satisfaction among our customers

management office and relevant individual departments, and are

and contribute to society by delivering safety, comfort, dreams,

reflected in the Group’s overall risk management.

and excitement involves the ongoing pursuit of sustained growthunderpinned by an active commitment to ESG.
In May 2020, we launched the Hankyu Hanshin Holdings Group

Reflecting Stakeholder Sentiment in
Operations

Sustainability Declaration (see page 2), a clear indication of how
we intend to contribute to more sustainable use of resources
across society. The declaration sets forth our determination to

At the Hankyu Hanshin Holdings Group, we believe that the views

ramp up ESG initiatives, to further solidify the relationship of trustof our stakeholders—including customers, local communities,

we enjoy with customers, local communities, shareholders,shareholders,trading partners, employees, and other stakeholders, and to use

trading

partners,

and

employees—haveanimportant place in our business operations.

Shareholder and Investor Relations

overcoming the challenges we all face as a society.
Our social contribution activities, such as environmental andWe have adopted a variety of initiatives to make shareholder

community action, have benefited from the institution of a clear

meetings more rigorous and make it easier for shareholders toGroup policy and the establishment of a dedicated department

exercise their voting rights. These include timing meetings towithin the Personnel and General Affairs Division, and our efforts

avoid scheduling clashes with other companies, using online

in this area are guided by the Sustainability Declaration.

voting platforms, posting convocation and resolution notices(including English versions) on our website, and improving thevoting experience for institutional investors.
◦ Early sending of convocation notices for the General Meetingof Shareholders
Notices of convocation for the General Meeting of Shareholders
held in June 2021 were sent 21 days prior to the event (May 26,2021).

65

the Hankyu Hanshin Holdings Group’s businesses as a vehicle for

Hankyu Hanshin Holdings Integrated Report 2021

See the Hankyu Hanshin Holdings website for details (https://www.hankyu-hanshin.co.jp/sustainability/) (Japanese only).

Acting on Feedback from Customers

5. Tax-related risk management

We value feedback from customers, which we receive in via

Should any dealings for which tax interpretations are unclear

multiple channels, including our Listening Center and forums fortake place as part of our business activities, we take advice from

dialogue with residents’ groups from communities along ouroutside experts and where needed consult with tax authorities inrailway routes. This structure is designed so that customer

advance so as to minimize tax-related risk.

feedback is routinely shared in-house and reflected in ourbusiness.

6. Relationship with tax authorities
We work to maintain a positive relationship with tax authorities

Center and the Listening Center into its framework for collecting

and respond in a timely manner to their queries accurately andand acting on customer feedback.

honestly.

For its part, the Hanshin Electric Railway seeks to act on
feedback collected by its public relations office and at its various■ Amount of Tax Paid
Overseas

Total

Alongside the pertinent departments, we investigate and

FY2019

29.5

0.6

30.2

respondtoopinions,

questions,

and

other

feedback

as

FY2020

14.0

0.5

14.5

appropriate, and the results are subsequently used to improve
our businesses.

FY2021

19.4

0.3

19.8

Acting on Feedback from Experts
The priority issues relating to sustainable management set forthMessages fromthe Top Management

communications staff.

(¥ billion)Japanfacilities, as well as through its website and the efforts of its

ProfileThe Hankyu Corporation incorporates its Transit Information*Tax paid is a combined figure for both national and regional taxes. The
figures given above are based on country-specific reports and are notdirectly connected to our consolidated financial statements.

in the Materiality Matrix (see page 31) reflect the diverse views

Approach to Intellectual Property

groups, and investors.

Taxation Transparency (Tax Policy)
1. Fundamental policy
The Group wishes to remain a corporate group that has the trustof its customers and the rest of society. To this end, we arefurther raising the level of transparency and soundness of ourbusiness management, complying with laws and regulations, anddisclosing information in an appropriate manner and at a suitable
time.
This fundamental approach will guide us as we aim to bothcontribute to society by paying a reasonable amount of tax andachieve sustainable growth and greater corporate value in thebusiness activities over many years—including our brands,
trademarks, and confidential management assets such as writtenmaterials and expertise—are important corporate assets to the
Hankyu Hanshin Holdings Group. As such, we will endeavor tocreate new intellectual properties, both to provide products andservices that customers can choose with peace of mind and to
appropriately distribute as a management asset to support futurebusiness expansion. To those ends, it is imperative that wemanage and use these assets appropriately.
Based on that approach, we will manage intellectual properties
in the ways outlined below so as to raise their value even further.
We also have the utmost respect for intellectual properties
that belong to third parties.
(1) We will not only work to avoid or prevent the infringement of

2. Compliance with tax laws and regulations

the intellectual properties we have created, but will acquire

As well as complying with laws and regulations pertaining torights so as to support the expansion of our business activities

taxation, we will report and pay taxes appropriately and thereby

and use these intellectual properties actively and strategicallyfulfill our corporate social responsibility.

in our businesses.

3. Tax planning

Creating Real Value:
The Foundations

medium to long term.

The intellectual properties that we have built up through ourCreating Real Value:
The Processes

strengthening and enhancing our corporate governance byCreating Real Value:
Our Story

provided by a broad variety of experts, including professors, civic(2) Where third parties, including business partners, wish to do

The scope of our tax planning is based on our business objectives

business that involves the use of our intellectual properties,

and actual performance and we are working to improve corporate

wevalue through the effective use of tax incentives and otherpermission is dependent on the contents of that use after anmeasures. Our tax planning is not conducted with the aim of tax

appropriate investigation.

make

our

permission

mandatory

andensureFinancial Section andCorporate Data

willavoidance.

4. Tax governanceCorporate governance of taxation is covered by our groupwide
governance system. We have an oversight system in place, under(3) Where we confirm that a third party has, or may have,infringed upon our intellectual property rights, we will takeserious actions.

which tax-related risks are reported to the Board of Directors andAudit & Supervisory Committee as appropriate.

Hankyu Hanshin Holdings Integrated Report 2021

66

Creating Real Value: The Foundations

Directors and Audit & Supervisory Committee Members
As of June 16, 2021

Directors

Kazuo Sumi

Chairman and Representative Director,
Group Chief Executive Officer
1973
2000
2002
2003
2005
2006
2014
2017

Joined Hankyu Corporation
Director, Hankyu Corporation
Managing Director, Hankyu Corporation
President, Hankyu Corporation
President, Hankyu Holdings, Inc.
President, Hankyu Hanshin Holdings, Inc.
Chairman, Hankyu Corporation (Current position)
Chairman, Group CEO, Hankyu Hanshin Holdings,
Inc. (Current position)

2021 Director, Hankyu Travel International Co., Ltd.
(Current position)

2021 Director, Hankyu Hanshin Hotels Co., Ltd.

Takehiro Sugiyama

President and Representative Director
1982
2005
2006
2006
2007
2016
2016
2016
2016
2017
2017
2021

Joined Hankyu Corporation
Director, Hankyu Corporation
Director, Hankyu Holdings, Inc.
Director, Hankyu Hanshin Holdings, Inc.
Managing Director, Hankyu Corporation
Executive Vice President, Hankyu Corporation
Executive Vice President, Hankyu Hanshin Holdings, Inc.
Director, Hanshin Electric Railway Co., Ltd. (Current position)
Director, Hankyu Hanshin Express Co., Ltd. (Current position)
President, Hankyu Corporation (Current position)
President, Hankyu Hanshin Holdings, Inc. (Current position)
Chairman, Hankyu Hanshin Properties Corp. (Current position)

Executive Vice President andRepresentative Director
1981
2006
2006
2008
2014

Joined Hanshin Electric Railway Co., Ltd.
Director, Hanshin Electric Railway Co., Ltd.
Director, Hankyu Hanshin Holdings, Inc.
Managing Director, Hanshin Electric Railway Co., Ltd.
Senior Managing Director, Hanshin Electric
Railway Co., Ltd.

2016 Director, Hankyu Corporation (Current position)2017 President, Hanshin Electric Railway Co., Ltd.
(Current position)2017 Executive Vice President, Hankyu Hanshin
Holdings, Inc. (Current position)2018 Director, Hankyu Hanshin Properties Corp.
(Current position)(Current position)

Noriyuki Inoue

Noriko Endo

Yuki Tsuru

1957
1994
2002
2003
2005
2006

1994 Joined DIAMOND, Inc.
2013 Visiting Researcher, Policy Alternatives

2000 Attorney at law (Current position)2016 Auditor of Hitotsubashi University
2020 Director, Hankyu Hanshin Holdings, Inc.

Director (Outside director*)
Joined DAIKIN INDUSTRIES, LTD.
President, DAIKIN INDUSTRIES, LTD.
Chairman and CEO, DAIKIN INDUSTRIES, LTD.
Director, Hankyu Corporation
Director, Hankyu Holdings, Inc.
Director, Hankyu Hanshin Holdings, Inc.
(Current position)

Director (Outside director*)

Research Institute, the University of Tokyo

2015 Project Professor, Graduate School of Mediaand Governance, Keio University

2019 Director, Hankyu Hanshin Holdings, Inc.
(Current position)2014 Chairman and Chief Global Group Officer,

2020 Project professor at the Keio University

Yoshishige Shimatani

Naoya Araki

1975 Joined TOHO CO., LTD.
2011 President, TOHO CO., LTD. (Current position)2015 Director, Hankyu Hanshin Holdings, Inc.

1981
2012
2012
2017
2020

DAIKIN INDUSTRIES, LTD. (Current position)

Director (Part-time)(Current position)

Global Research Institute (Current position)

Director (Part-time)

Joined Hankyu Department Store, Inc.
President, Hankyu Hanshin Department Stores, Inc.
Representative Director, H2O RETAILING CORPORATION
Director, Hankyu Hanshin Holdings, Inc. (Current position)
President and Representative Director, H2O
RETAILING CORPORATION (Current position)2020 Chairman, Hankyu Hanshin Department Stores, Inc.
(Current position)

67

Masao Shin

Hankyu Hanshin Holdings Integrated Report 2021

Director (Outside director*)(Current position)

Directors, Audit & Supervisory Committee Members

ProfileJunzo Ishii

Director, Audit & Supervisory Committee
Member (Outside director*)

Michiari Komiyama

Director, Audit & Supervisory Committee
Member (Full-time)
1979 Joined Hanshin Electric Railway Co., Ltd.
2013 Standing auditor, Hanshin Electric Railway

1986 Professor of Faculty of Commerce, Doshisha University
1989 Professor of Faculty of Business Administration, Kobe University
1999 Professor of Faculty of Business Administration,

1971
1999
1999
2002
2003
2013
2017
2017
2020

Co., Ltd. (Current position)2013 Standing auditor, Hankyu Hanshin Holdings,
Inc.

2020 Director, Audit & Supervisory Committee
Member (Full-time), Hankyu Hanshin
Holdings, Inc. (Current position)

2008
2010
2010
2016
2020

Graduate School of Kobe University

President of the University of Marketing and Distribution Sciences
Auditor, Hankyu Hanshin Holdings, Inc.
Auditor, Hanshin Electric Railway Co., Ltd. (Current position)
Director, Distribution Science Research Center
Director, Audit & Supervisory Committee Member,

Director, Audit & Supervisory Committee
Member (Outside director*)
Prosecutor
Prosecutor, Supreme Public Prosecutorʼs Office
Chief Prosecutor, Saga District Public Prosecutorʼs Office
Chief Prosecutor, Kobe District Public Prosecutorʼs OfficeNotary, Osaka Legal Affairs Bureau
Attorney at law (Current position)
Auditor, Hankyu Hanshin Holdings, Inc.
Auditor, Hankyu Corporation (Current position)
Director, Audit & Supervisory Committee Member,
Hankyu Hanshin Holdings, Inc. (Current position)

Creating Real Value:
Our Story

Hankyu Hanshin Holdings, Inc. (Current position)

Messages fromthe Top Management

Masayoshi Ishibashi*Mr. Noriyuki Inoue, Ms. Noriko Endo, Ms. Yuki Tsuru, Mr. Junzo Ishii and Mr. Michiari Komiyama satisfy the qualifications ofoutside directors as provided in Article 2, Paragraph 15 of the Companies Act.
The Company has submitted notifications to the stock exchanges on which its shares are listed, naming Mr. Inoue, Ms. Endo,
Ms. Tsuru, Mr. Ishii and Mr. Komiyama as independent officers.

Reasons for election of outside directors
Audit & Supervisory Independent
Committee Member
officer

Reasons for appointment

Yuki Tsuru

Currently an attorney at law. Appointed to advise on more compliance-based management and forher ability to provide independent input.
Further, her appointment presents no issues with regard to the Independence Criteria
established by the company in light of the Tokyo Stock Exchangeʼs independence requirements,
and there is no risk of any conflict of interest with general shareholders.

Junzo Ishii

Former Professor of Faculty of Business Administration within the Graduate School of Kobe
University and former President of the University of Marketing and Distribution Sciences.
Appointed for his ability to express useful opinions based on his high-level specialist expertise inbusiness administration and for his ability to provide independent input.
Further, his appointment presents no issues with regard to the Independence Criteria
established by the company in light of the Tokyo Stock Exchangeʼs independence requirements,
and there is no risk of any conflict of interest with general shareholders.

Michiari

Financial Section andCorporate Data

Noriko Endo

To obtain input based on her extensive expertise acquired through research into public
governance, she was appointed for her ability to provide independent input.
Further, her appointment presents no issues with regard to the Independence Criteria
established by the company in light of the Tokyo Stock Exchangeʼs independence requirements,
and there is no risk of any conflict of interest with general shareholders.

Creating Real Value:
The Foundations

Noriyuki Inoue

For many years, representative director of DAIKIN INDUSTRIES, LTD. and vice-chairman of Kansai
Economic Federation. Appointed for his wealth of management experience, perspective from top
business circles, and ability to provide independent input.
Further, his appointment presents no issues with regard to the Independence Criteria
established by the company in light of the Tokyo Stock Exchangeʼs independence requirements,
and there is no risk of any conflict of interest with general shareholders.

Komiyama

Creating Real Value:
The ProcessesName

A member of the legal profession who has served in important positions, including chiefprosecutor of the Kobe District Public Prosecutorʼs Office, and who is currently active as an
attorney at law. Appointed because, given his experience, he is expected to provide valuable
opinions, particularly about ensuring compliance in business management.
Further, his appointment presents no issues with regard to the Independence Criteria
established by the company in light of the Tokyo Stock Exchangeʼs independence requirements,
and there is no risk of any conflict of interest with general shareholders.

Hankyu Hanshin Holdings Integrated Report 2021

68

Creating Real Value: The Foundations

S

Priority Issue 4

Empowering individuals

So cial

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

Non-Financial KPIs
Non-financial KPIs

Target value

Scope

FY2021 result

Employee satisfaction

Always better than in previous survey(conducted biennially)

Hankyu Hanshin Holdings and the six
core companies*1

FY2020 result
3.72 (on a five-level scale)*2

Women in management positions

Around 10% in FY2031

Hankyu Hanshin Holdings and the six
core companies

4.7%

Women among new hires

Always 30% or more

Hankyu Hanshin Holdings and the six
core companies

44.5%

60% or more in FY2026

Hankyu Hanshin Holdings and the six
core companies

30.9%

Smoking prevalence

15% or less in FY2026

Hankyu Hanshin Holdings, Hankyu
Corporation, Hanshin Electric
Railway, and Hankyu Hanshin
Properties

21.7%

Paternity leave uptake

100% in FY2026

Hankyu Hanshin Holdings and Hankyu
Hanshin Properties

8.6%(Hereinafter, non-financial KPIs newly set for FY2022)

Specific health guidance provision*1 Six core companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin Express, andHankyu Hanshin Hotels*2 Results are compiled regarding four companies (Hankyu Hanshin Holdings, Hankyu Corporation, Hanshin Electric Railway, and Hankyu Hanshin Properties) on
which a survey was conducted in fiscal 2020.

Project Themes (1)Improve employee satisfaction and createa more positive workplace
Hankyu Hanshin Holdings and the six core companies havedesigned original employee satisfaction surveys suitable for theaimingatcontinuous

improvement

Group’sofemployeesatisfaction through regular monitoring. The survey results are
utilized not only to grasp the current situation from the four
aspects of “jobs, workplaces, bosses, the company,” but also tomeasure our engagement, such as willingness to contribute tothese four aspects, in considering initiatives for increasing our job
satisfaction and improving working environments.

Project Themes (2)Promote health and productivity
managementon

The Hankyu Hanshin Holdings Group believes that the mental andphysical wellbeing of employees and their families remains the
future. In addition, in order to provide our customers with safety andcomfort as well as dreams and excitement, it is paramount that we
enable everyone to fully demonstrate their diverse personalities andabilities in good health.
To achieve this goal, we will maintain high awareness of our own
well-being and work with our colleagues in the workplace and theirfamilies to promote good health.
The Hankyu Hanshin Holdings Group declares that it will actively
support the well-being of each individual and strive to create aworkplace environment in which all can live and work in good healthand with motivation. The Group will pursue these initiatives under
the slogan “Hankyu Hanshin Wellness Challenge.”
Takehiro Sugiyama
President and Representative Director
Officer in charge of Health Management
Hankyu Hanshin Holdings, Inc.

April 2018

Putting the Declaration on Employee Health Management
into Practice
The Hankyu Hanshin Holdings Group’s Declaration on Employee
Health Management expresses our dedication to improving
health awareness among our workforce and making ourworkplaces more comfortable. Based on the declaration, Hankyu
Corporation and the Group’s other core companies haveassigned directors to be in charge of efforts in this area, withregular activity reports to be made to top management. Throughthese activities, a system to promote health and productivity
management has been put in place.

Declaration

source of happiness and the cornerstone of the Group’s prosperous

Conduct Employee Satisfaction Surveys

Group,The Hankyu Hanshin Holdings
Employee Health Management

The Hankyu Hanshin Wellness Challenge
We at the Hankyu Hanshin Holdings Group have a variety of
initiatives in place to improve health across our entire workforce.
These include encouraging participation in We Walk events,
mental health counseling facilities at both Hankyu Corporationand Hanshin Electric Railway, free participation in online clinics
aimed at helping smokers quit, and encouraging employees toundergo cancer screenings.
For the time being, our attention is focused on countering the
spread of COVID-19 to ensure smooth continuity of business.

69

Hankyu Hanshin Holdings Integrated Report 2021

Certified “Health & Productivity Management Outstanding
Organization”

Employment Opportunities for People with Disabilities

The Group’s 15 business companies, including six core ones,

for the purpose of providing opportunities for people with

were selected for the Certified Health & Productivity Management

disabilities to work within our Group, providing services such as

Outstanding Organizations Recognition Program for 2021.*

cleaning,

Project Themes (3)officemassage,andintragroupcorrespondence

deliveries. This initiative was recognized by the Osaka prefectural
government, which awarded us the Highly Commended Prize in
its Heartful Corporate Challenge in September 2019.

Profile*Under the program, the ministry,
together with the Nippon Kenko
Kaigi, recognizes outstanding
enterprises engaging in efforts toadvance health and productivity
management.

Assist Hankyu Hanshin is a special subsidiary established in 2005

In December 2020, the Company became the first “Monisu
Employer” in Osaka prefecture as a business owner excelling in
the implementation of initiatives to promote and stabilize

Promote diversity

employment of people with disabilities.

Hankyu Hanshin Holdings and the six core companies haveestablished action plans based on the Act on Promotion of
Women’s Participation and Advancement in the Workplace, andcontinue to be proactive hirers of women. In addition, we strive
to maintain a working environment where all employees—
regardless of gender—can seek to fulfill their potential. To thisend, we offer varied career experience and implement policies tohelp maintain a balance between work and home life.

Personnel Development to Increase Diversity

Messages fromthe Top Management

Empowering Women in the Workplace

Regardless of the type of employment, we are cultivating diverse
human resources based on the following policies.

■ Personnel development policy(1) Support independent career formation and competencedevelopment(2) Clarify the image of personnel we seek and support training
at workplaces(3) Promote new value creation from a long-term perspective

Women (WIN) Select Index, which comprises leading companies
in terms of gender diversity, for the second consecutive year
since 2020.

Creating Real Value:
Our Story

These initiatives earned Hankyu Hanshin Holdings the honor ofbeing selected as a constituent of the MSCI Japan Empowering

Project Themes (4)Respect human rights and prevent harassment
Basic Philosophy and Policy on Respect for Human Rights
At the Hankyu Hanshin Holdings Group, we work hard to ensure
across-the-board respect for human rights. To ensure all

MSCI https://www.msci.com/our-solutions/esg-investing
The Company* is creating an environment with a range of options
as shown below to help employees maintain their working careers
in balance with family commitments and other major events in life.
• Expanded support programs: Work-from-home, an optional “pool”
of unused annual paid leave days, and subsidies for those usingbabysitters, etc.
• Expanded support for those on childcare leave: regular updates
etc.

on Respect for Human Rights.
The Hankyu Hanshin Holdings Group Basic Philosophy on
Respect for Human Rights
We will contribute to the establishment of a fair and abundantsociety in which all people’s human rights are respected and inwhich no person is discriminated against because of their birth,
nationality, beliefs, gender, race, age, or disability.
Today, respecting the human rights of customers, trading
partners, shareholders, local communities, employees, and all other

Creating Real Value:
The Foundations

about what’s going on in the workplace, “back on board” seminars,

Basic Philosophy on Respect for Human Rights and Basic Policy
Creating Real Value:
The Processes

Balancing Work and Family Care Commitments

employees understand our stance, we have compiled a written

people is a vital part of every company’s social responsibilities.
To that end, we are determined to develop a better instinct for• Handbooks for leave-takers and their managers*The support initiatives described above are those of Hankyu Hanshin
Holdings; other Group companies have their own systems in place inaccordance with the scale of their operations.

■ Workforce Composition of Hankyu Hanshin Holdings andthe Six Core Companies (as of March 31, 2021)
Employees*1

Management employees*1

FemaleTotal

Female10,527

22.2%

1,645

4.7%

New recruits*2 (FY2021)

Avg. service (years)of human rights and the surrounding issues.
We recognize that human rights are closely relevant to us all, andendeavor to make sensitivity to human rights a core part of ourthoughts and our actions.

See the Basic Policy on Respect for Human Rights (Japanese only) at

Financial Section andCorporate Data

Totalhuman rights by maintaining a deep knowledge and understanding

https://www.hankyu-hanshin.co.jp/sustainability/materiality/human/rights/

Preventing Harassment through Human Rights Training

Total

FemaleMale

Female

Total

Difference

All Hankyu Hanshin Holdings management-level employees and top

604

44.5%

20.1

10.1

17.7

10.0

executives of our Group companies undergo human rights training*1 Includes those on secondment elsewhere; excludes those seconded to us.
*2 Newly graduated and mid-career hires

once a year. Moreover, ongoing reinforcement is provided in the

Encouragement of paternity leave

form of various human rights training sessions for newly appointed
officers and managers, new recruits, and newly promoted

At Hankyu Hanshin Holdings and Hankyu Hanshin Properties Corp.,

employees at Group companies in order to instill the importance of

we are improving the environment, so both male and female

respect for human rights and prevent harassment.

employees can balance their work and home lives by expanding
systems of childcare leave and other means.
Hankyu Hanshin Holdings Integrated Report 2021

70

Creating Real Value: The Foundations
Priority Issue 4

Empowering individuals
Project Themes (5)We have hosted over 17,000 children

Cultivate tomorrow’s leadersacross 389 programs so far.
(No programs took place in fiscal

As part of the Hankyu Hanshin Dreams and Communities of the2021 due to the COVID-19 pandemic.)

Future Project, we provide career education programs forelementary school children. The following two programs received

Kids participate in the Hotel
Patissier Program

the Minister’s Award (Grand Prix) at the 8th Career Education
Awards held by the Ministry of Economy, Trade, and Industry inHankyu Hanshin Dreams and Communities Exciting Work Programfiscal 2018, and the highest award (the Minister’s Award) at the

Hankyu Corporation management staff conduct classes at local“YouthAward”

elementary schools about Hankyu founder Ichizo Kobayashi’s

sponsored by the Ministry of Education, Culture, Sports, Science

community building initiatives and the wide-ranging work that goes

and Technology in fiscal 2021.

into supporting communities as aExperience

Activity

Promotion

Companymeans

Hankyu Hanshin Dreams and Communities Challenge Troop
With railways, hotels, the Takarazuka Revue Company, and Hanshin
Koshien Stadium among many others, our businesses, facilities, andworkforce are the ideal framework for elementary school students
to experience a variety of real work during their summer vacation.

offostering

love

of

community and dreams for the
future. To date, we have broughtthese opportunities to think about
futureoccupations

toaround20,000 children at 236 schools.

Children participate eagerly in an
in-school program

Hankyu Hanshin Holdings Group Social Contribution Activity
Hankyu Hanshin Dreams and Communities of the Future ProjectAs part of the Hankyu Hanshin Holdings Group’s commitment to creating communities that people will truly want tolive in, we have operated the Hankyu Hanshin Dreams and Communities of the Future Project since 2009. The project,which focuses chiefly on developing environment-friendly regional environments and tomorrow’s leaders, is one of ourefforts aimed at helping meet the SDGs as outlined in the Sustainability Declaration we unveiled in May 2020.

Basic Policy
We intend to promote the creation of communities along our line-side
areas that people will truly want to live in.

Priority Areas

3. Supporting the healthy development of children through sports
4. Enabling children to gain a deeper understanding of society andtheir communities
5. Cultivating in children a sense of compassion and acknowledgementof diversity

Our links to the future: Sustainable Community Development and6. Instilling in children the wisdom of their parents and grandparents

Tomorrow’s Leader Development

7. Supporting children with disabilities, children orphaned by traffic(1) Sustainable Community Development

accidents or disasters, children in single-parent families, and children
confined to social welfare facilities

As a Group with strong local roots, we are committed to sustainablecommunity building with environment-friendly developments thatprovide local residents with security, peace of mind, and culturalGroup Social Contribution Initiatives in Recent Years
Collaboration with Group companies

enrichment.

We promote the initiatives of our Group companies through public

Themes of specific initiatives

relations, sponsorships, and additional contributions. In fiscal 2021, 96

1. Creating a safe, comfortable, and environmentally aware local

initiatives were carried out groupwide (102 in fiscal 2020). In addition,community
2. Contributing to the preservation of biodiversity and the naturalenvironment

we are supporting citizen’s groups and encouraging our employees’
participation in volunteer activities in the areas of Sustainable
Community Development and Tomorrow’s Leader Development.

3. Promoting sustainable lifestyles
4. Preserving, utilizing, and developing local history and cultural
resources

We subsidize citizen’s groups in the Hankyu Hanshin service area

5. Prevention of global warming

through donations raised by our employees and additional

6. Contributing to the emergence of a society committed to recycling

contributions from the Company via the Hankyu Hanshin Dreams andand waste reduction(2) Tomorrow’s Leader Development
We are creating opportunities for the healthy development of
ambitious children, upon whose shoulders the task of building thecommunities of the future rests.
Themes of specific initiatives
1. Enabling children to experience and learn about nature and ecology
2. Fostering mental enrichment in children through cultural and artistic
activities

71

Collaboration with local community

Hankyu Hanshin Holdings Integrated Report 2021

Communities of the Future Fund. By the end of fiscal 2021, 149
institutions have received a total of ¥88.06 million.
Collaboration with Group employees
As a support for current and past employees to join or continuously
engage in community activities voluntarily, we distribute information
through Group magazines and mail magazines and provide
opportunities for volunteering inside and outside the Company. In
fiscal 2021, the number of participants in volunteer activities reached4,390.

価値創造の基盤

E
Environmental

Priority Issue 5

Environmental protection

Policies
ProfileContribute toward a low-carbon, circular economy.

Major Non-Financial KPIs
Non-Financial KPIs

Target value

Scope

FY2021 result
40.0%

FY2031: 40% compared to FY2014

Energy consumption in railway operation businessof Hankyu Corporation and Hanshin Electric Railway

41.5%

Rate of CO₂ emissions cuts

Messages fromthe Top Management

FY2031: 26% compared to FY2014

Hankyu Hanshin Holdings and its subsidiaries’
Japanese worksites

Target setting for the rate of CO₂ emissions cuts described above is currently being reviewed toward the goal of going carbon neutral (decarbonizedsociety) by 2050.
Basic Environmental Philosophy

Basic Environmental Policies

Mindful that global environmental preservation is a

1. We will monitor the environmental impact of our business activities and take action totask facing all mankind, the Hankyu Hanshin Holdings
environmental activities aimed at handing down asounder global and human environment to the next
generation.

reduce it.
2. We will accurately understand environmental laws and regulations and other social

Creating Real Value:
Our Story

Group works for a sustainable society throughrequirements and comply with them.
3. We will strive to raise employees’ awareness so that every employee will be able toact in an environmentally sustainable manner.

Project Themes (1)Project Themes (2)Cut greenhouse gas (CO₂) emissions

Improve energy efficiency(promote energy saving)

Changes in CO₂ Emissions (see page 12)Upgrading to Energy-Efficient Rolling Stockand endeavor to reduce CO₂ emissions.

In our railway operation business, the biggest energy consumption

Our efforts to reduce energy consumption include thepoint is the operation of transportation services. Seeking to

introduction of an increased number of new rolling stock with

reduce energy consumption, we are gradually upgrading ourbetter energy efficiency, as well as the introduction of LED lighting

rolling stock to energy-efficient models with, for instance,

in railway stations, commercial facilities, hotels, etc., which

regenerative braking systems that use the resistance of braking

contributes to decreasing energy consumption by our Group

motion to drive a motor and generate electricity for use incompanies year by year.

powering other trains.
Another example is Hankyu Corporation’s use of aluminum

due to the COVID-19 pandemic and the state of emergency

railway cars, which are approximately ten percent lighter thandeclared twice became major factors that caused CO₂ emissions

conventional steel models and therefore use less energy and put

for fiscal 2021 to fall by 15% year on year, to 369,646 t-CO₂.

less burden on brakes when decelerating.

The graph below shows a breakdown of CO₂ emissions acrossthe whole Group.

Meanwhile,

HanshinElectric

Railwayisreducing

Creating Real Value:
The Foundations

Moreover, the significant stagnation of socioeconomic activities

Creating Real Value:
The Processes

We promote energy-efficiency initiatives throughout the Groupits

environmental impact by introducing rolling stock with stainless■ Fiscal 2021 Groupwide Segment-Specific CO₂ Emissions

steel structures and doing away with external painting.
Both companies are also gradually installing LED lights, which
use less energy, last longer, and create less waste.

66.7%

Real estate

19.7%

Entertainment

2.5%

Information andCommunication
Technology

0.5%

Travel0.4%

Internationaltransportation

0.5%

Hotels

8.5%

Others1.1%*Figures pertain to 78 Hankyu Hanshin Holdings subsidiaries in Japan; somebusinesses, for which it is difficult to calculate energy consumption, areexcluded.

Financial Section andCorporate Data

Urbantransportation

Upgrading to Energy-Efficient Rolling Stock (as of March 31, 2021)
Hankyu Corporation Total rolling stock: 1,283 cars
• Cars with regenerative braking: 904 (70%)• Aluminum-body cars: 810 (63%)• Cars with LED lights: 662 (52%)

Hanshin Electric Railway Total rolling stock: 358 cars
• Cars with regenerative braking: 326 (91%)• Stainless steel cars: 154 (43%)• Cars with LED lights: 212 (59%)

Energy Savings

Reduction in railway operation business energy consumption in FY2021
compared with FY2014

Hankyu Corporation 12.7%, Hanshin Electric Railway 10.9%

Hankyu Hanshin Holdings Integrated Report 2021

72

Creating Real Value: The Foundations
Priority Issue 5

Environmental protection
Upgrading to LED Lighting

Green Energy and Offset Credits

We are gradually upgrading to LED lights at our Group companies’

Since fiscal 2012, when we at Hankyu Hanshin Holdings hold ourfacilities. LED lights can increasingly be found not only in Hankyu

General Meeting of Shareholders, the energy used at the venue isand Hanshin train cars but also at their stations, marshaling yards,

offset under the Ministry of the Environment’s J-VER schemetunnels, level crossings, and other railway facilities, as well as

using offset credits generated by reforestation projects in Hyogo

Takarazuka Grand Theater, Tokyo Takarazuka Theater, and ourPrefecture.

commercial facilities, hotels, and distribution hubs.

In addition, Hankyu Corporation, Hanshin Electric Railway andOur Hanshin Koshien Stadium plans to switch stadium lighting

Hanshin Tigers are offsetting carbon emissions jointly with Osaka

to LED in the off-season of 2021. With this, we will reduce CO₂

Gas using the J-Credit scheme.*

emissions by about 60% to improve energy efficiency.

Hankyu Corporation: Since fiscal 2015, all CO₂ emitted during“carbon offset performances” of the Takarazuka Revue has been
offset. (No performances were run in fiscal 2021 due to thepandemic.)
Hanshin Electric Railway and Hanshin Tigers: Starting from fiscal
2022, all CO₂ emitted during certain summer baseball matches
hosted by and held at Hanshin Koshien Stadium will be offset.

1300-series
Hankyu train cars
are lit with LED
lights*J-Credit scheme: A program under which the Japanese government certifies
amounts of CO₂ and other greenhouse effect gases reduced/absorbed
through the introduction of energy-saving equipment, forest management, andother efforts as credits

Project Themes (4)Aim for more eco-friendly buildings(green buildings)
DBJ Green Building Certification
The Group is increasing efforts to acquire DBJ Green Building
Inside Takarazuka Grand Theater

Hankyu Sanban Gai shopping arcade

Certification*¹ for its large office and commercial buildings to be
newly built. To date, our Umeda 1-1 Project (Osaka Umeda Twin
Towers South plan certification*², overall completion scheduled
in 2022 spring) and Hankyu Nishinomiya Gardens have received
rating of five stars, and HEP FIVE four stars. In August 2021, Kobe
Sannomiya Hankyu Building earned three stars.

Hanshin Koshien Stadium plans to introduce LED lighting (sample image).

*1 A five-stage (1-5 stars) rating system launched by the Development Bank ofJapan to certify properties which give proper care to the environment andsociety (green buildings)*2 A scheme that keeps a score of each real estate property before completionby using the DBJ Green Building Certification model based on its
development plan, and certification is given to the development “plan”

Project Themes (3)Use more renewable energy (e.g. solar)
Install Solar Power Generation Facilities to Reduce CO₂Emissions
We are endeavoring to reduce CO₂ emissions by installing solar
power generation facilities at premises groupwide, including
HankyuSettsu-shi

Station,Hanshin

Oishi

Station,HankyuNishinomiya Gardens, HEP FIVE, and Hanshin Koshien Stadium.

HEP FIVE

Umeda 1-1 Project

Hanshin Koshien Stadium

Kobe Sannomiya
Hankyu Building(Acquired in August 2021)

73

Hankyu Hanshin Holdings Integrated Report 2021

Other Environmentally Considerate Buildings
NU chayamachi PLUS has “green walls” and rooftop greenery to

Other Environmental Initiatives

counter the heat island effect, as well as LED lighting to help cut

Obtaining Environmental Management System Certifications

CO₂ emissions. The air conditioning at the HERBIS OSAKA andSome of the Group’s worksites have obtained certifications

HERBIS ENT buildings feature one of Japan’s largest (at the time

related to environmental management systems such as ISO14001

of installation) single-building ice thermal storage systems, which

and Green Management Certification.

provides for efficient night-time energy use.

Our Group companies and worksites that have acquired
ISO14001,

aninternational

standardforenvironmental

have featured laminated low-emissivity glass, LED lights (common

management systems, are as follows.

and exclusively owned areas), EV charging facilities, etc. as part• Hankyu Corporation (Hankyu Railway Shojaku Factory)of our endeavor to tackle environmental issues. Introduction of• Hankyu Hanshin Express (Narita Cargo Center, Osaka Cargoelectricity-generation equipment that uses sunlight and solar
heat is also ongoing with some properties.

ProfileSince the end of July 2011, all Geo condominiums* for sale

Terminal)• HHE* (USA), HHE (HONG KONG), HHE (NETHERLANDS), HHE(DEUTSCHLAND), HHE (MALAYSIA)

Messages fromthe Top Management*Such features may not be available for some joint venture properties withother companies.

• Itec Hankyu Hanshin (all group companies)*HHE: HANKYU HANSHIN EXPRESS

Project Themes (5)Produce less waste and recycle more

Proposing CO₂ Reduction in Travel, etc.
In September 2021, Hankyu Travel International started a new

Recycling Hanshin Koshien Stadium’s
Plastic Drink Containers

project of proposing CO₂ reduction in MICE, travel and otherWe work with TEIJIN FRONTIER CO., LTD.

made in this project include plans that proactively use

to recycle the plastic drink containers usedaccommodation and transportation facilities with low CO₂

to serve beer at Hanshin Koshien Stadium.

emissions, those put a limit on the use of plastics, and introduction

The recycled containers are made into beerof carbon offset. In addition, support for the procurement ofcup holders and a variety of other popular

renewable energy is offered to companies that own hotels andnovelty items. We collected 4.9 metric tons

commercial facilities. Through these services, we will supportof used drink containers, which becamecompanies and organizations working toward carbon neutral.

activities conducted by companies and organizations. Proposals

Creating Real Value:
Our Story

11,000 cup holders, in fiscal 2020 before

Conservation and Effective Use of Water Resources

the spread of COVID-19.

Hankyu Hanshin Hotels encourages guests staying multiple nights
A beer cup recycle bin

Recycling Food Waste in Hotel Business

Creating Real Value:
The Processes

to use the same sheets and towels instead of having them
replaced every day. This reduces the volume of wastewater, andsome of the money saved on laundry is donated to environmental
action groups.

At some Hankyu Hanshin hotels, we strive to reduce food waste

Meanwhile, Hankyu Nishiyama-tennozan Station and Hanshin

and use resources more efficiently by properly separating scraps

Koshien Stadium are equipped with tanks to store rainwater,and repurposing reusable ones as compost or feed on a pig farm.

which is subsequently used in toilets and to water the baseballfield, etc., and we are working to install water-efficient toilets in

From July 2019, Hankyu Hanshin Hotels has ceased using plastic

our other stations and facilities.

straws in the restaurants and banquet halls of its directly-

Protecting Biodiversity at the Rokko Alpine Botanical Garden

operated hotels, and has replaced them with straws made from

Rokko Alpine Botanical Garden, a member of the Japan Associationa resin derived from corn and other plant matter.

of Botanical Gardens since its inception in 1947 serving as a local

Plant-based plastics, like paper, generate little energy upon

Creating Real Value:
The Foundations

No More Plastic Straws

outpost, is devoted to preserving biodiversity; around 1,500

incineration, and emit no combustion gases containing hazardous

varieties of alpine and cold-

substances.

region plants from around theworld, as well as plants native todirectly managed restaurants, weRokko, and endangered species

give a straw only to customers

are all cultivated in near-natural

who need it to reduce plastic

conditions.

usage.

Financial Section andCorporate Data

Starting from fiscal 2022, at our

Hepatica nobilis var. pubescens
variety of liverwort, an endangered
species in Hyogo
Straw made from plant-derived
plastic

Protecting Japan’s Best Satoyama Forest
The satoyama community forest and agricultural landscape in the
Kurokawa district of Kawanishi City, Hyogo, has been described
as Japan’s best. The Nose Electric Railway, which serves the
Kurokawa district and owns some 40 ha of land, is dedicated to
the revival of its land as a satoyama forest jointly with thegovernment and citizen groups, as well as the conservation of
biodiversity through PR activities.
Hankyu Hanshin Holdings Integrated Report 2021

74

Financial Section and Corporate Data

Consolidated Eleven-Year Summary
Fiscal Year

2011

2012

2013

2014
¥ 679,157

Result of Operations (Millions of yen and thousands of U.S. dollars)1:
Revenues from operations¥ 638,770¥ 649,703¥ 682,439

Operating income

64,74373,80987,921

91,828

EBITDA2

127,100

133,500

145,100

149,200

Ordinary income (loss)

46,49465,39374,914

81,191

Income (loss) before income taxes

32,76043,41962,192

83,542

Net income (loss) attributable to owners of the parent

18,06839,25239,702

46,352Comprehensive income

14,72844,99254,081

55,941

Capital expenditure

68,431

55,26759,51280,722

Depreciation and amortization

59,66956,96854,54054,474¥ 146,991

Cash Flows (Millions of yen and thousands of U.S. dollars):
Cash flows from operating activities¥ 103,252¥ 124,525¥ 127,655

Cash flows from investing activities(62,516)(44,295)(58,923)(45,517)

Cash flows from financing activities(39,544)(78,978)(69,195)(105,079)

Increase (decrease) in cash and cash equivalents

474

767

817

(1,840)22,592

23,57225,581

24,497¥2,314,669¥2,274,380¥2,281,007¥2,286,928

486,947

524,801

573,154

617,598

1,251,665

1,183,647

1,126,633

1,032,307

Cash and cash equivalents at end of year
Financial Position (Millions of yen and thousands of U.S. dollars):
Total assets
Total net assets
Interest-bearing debt
Per Share Data (Yen and U.S. dollars)3:
Net income attributable toowners of the parent

Basic

¥

14.32

Diluted4

¥

31.13

¥

31.48

¥

36.76

14.27

31.13

31.47

36.75

Net assets

377.17407.01443.63477.69Dividend

5.00

5.00

5.00

6.00

Operating income margin (%)

10.1

11.4

12.9

13.5

ROA (%)5

2.0

2.8

3.3

3.6

ROE (%)6

3.8

7.9

7.4

8.0

Ratios:Interest-bearing debt/EBITDA (Times)

9.8

8.9

7.8

6.9

Equity ratio (%)

20.6

22.6

24.5

26.3

Debt/equity (D/E) ratio (Times)7

2.6

2.3

2.0

1.7

1,271,406

1,271,406

1,271,406

1,271,406

21,302

20,811

20,751

20,913

Others:Number of outstanding shares (Thousands)
Number of employees

1.	The U.S. dollar amounts have been translated, for convenience only, at ¥111 = US$1, the prevailing exchange rate on the Tokyo Foreign Exchange Market as of March 31,
2021.

2.	EBITDA = operating income + depreciation expenses + amortization of goodwill
EBITDA figures are rounded to the nearest ¥100 million.

3.	The Company (since fiscal 2020) and our subsidiary Hankyu Hanshin Properties Corp. (since fiscal 2019), as well as Hankyu Corporation and Hanshin Electric Railway

Co., Ltd. (both since fiscal 2018), have operated the Board Incentive Plan Trust, and the shares of the Company held by such trust are recorded as treasury shares in the
consolidated financial statements.

Therefore, when net assets per share and net income per share vesting in the shareholders of the Parent Company and net income per share vesting in them after dilution
are calculated, the number of such shares is included in the treasury shares to be deducted.

4.	As there are no residual shares with a dilutive effect, net income attributable to owners of the parent per diluted share for fiscal 2020 has been omitted. For fiscal 2021,
net income attributable to owners of the parent per diluted share is omitted because a net loss per share was recorded despite the existence of dilutive shares.

75

Hankyu Hanshin Holdings Integrated Report 2021

20168

2017

20189

2019

2020

2021

2021

¥ 685,906¥ 746,792¥ 736,763¥ 760,252¥ 791,427¥ 762,650¥ 568,900$ 5,125,225

94,026110,293

104,058

105,211

114,937

95,1702,066

18,613150,100

166,500

159,300

160,800

171,400

154,100

60,300543,243

85,590104,479

100,607

103,774

110,543

88,795(7,623)(68,676)

77,62096,087

100,805

101,41088,56286,746(41,013)(369,486)

54,201

69,971

71,302

66,36165,47654,859(36,702)(330,649)

71,034

63,842

79,28873,991

66,56544,292(22,803)(205,432)

68,11566,63986,21286,404

114,368

81,090108,472

977,225

53,14353,70152,80053,27654,17256,542

55,733502,099¥ 131,881¥ 124,838¥ 115,633¥ 135,821¥ 126,035¥ 123,086(52,529)(78,843)(84,845)(88,351)(116,160)(81,746)(47,278)(30,595)(43,242)(11,171)964¥(32,501)$(292,802)(102,151)(920,279)

134,631

1,212,892(1,125)(1,978)

(480)

4,588

(1,848)（4,454）(375)(3,378)23,49722,363

22,53027,501

27,58923,52625,222

227,225¥2,279,638¥2,282,180¥2,349,831¥2,404,926¥2,466,223¥2,489,081¥2,621,028$23,612,865

679,482

724,237

804,659

866,512915,381

937,672

909,985

8,198,063

955,828

916,570

899,523

866,758

877,055

903,480

1,063,048

9,577,009

42.98

¥

277.88¥285.11¥

267.91¥266.86¥225.69¥(151.72)$

Creating Real Value:
Our Story¥

Messages fromthe Top Management（128,498）

Profile2015(1.37)

277.67284.86267.81266.86———525.562,815.96

3,150.67

3,391.35

3,615.52

3,738.56

3,598.83

32.422

6.00

35.00

35.00

40.00

40.00

50.00

50.00

0.45

13.7

14.8

14.1

13.8

14.5

12.5

0.4

—

3.7

4.6

4.3

4.4

4.5

3.6

(0.3)

—

8.6

10.3

9.4

8.2

7.6

6.1

(4.1)

—

6.4

5.5

5.6

5.4

5.1

5.9

17.6

—

29.1

31.0

33.5

34.8

35.9

36.4

33.1

—

1.4

1.3

1.1

1.0

1.0

1.0

1.2

—

1,271,406

254,281254,281254,281254,281254,281254,281—

21,037

21,607

21,86022,152

22,65422,80023,192—Creating Real Value:
The Processes

42.95

Creating Real Value:
The Foundations

5.	ROA = ordinary income / total assets (average of period-start and period-end totals)

6.	ROE = net income attributable to owners of the parent / equity (average of period-start and period-end totals)
7.	D/E ratio = interest-bearing debt / equity

8.	Regarding transactions related to such items as the export of mixed cargo of the International Transportation Business, the Company has changed the recognition ofrevenues from operations from net presentation to gross presentation as of fiscal 2017. As a result of this change, the amount of revenues from operations for fiscal 2016is the amount after retrospective application (gross presentation).

Further, the Company consolidated shares at the ratio of 5 shares to 1 share with an effective date of August 1, 2016. Net income per share, diluted net income

attributable to owners of the parent per share, net assets per share, dividend per share, and number of outstanding shares have been calculated based on the assumptionthat the said reverse stock split was executed on April 1, 2015.

9.	The partially amended “Tax Effect Accounting” standards (ASBJ Guidance No. 28, February 16, 2018) have been applied since the start of fiscal 2019, and theHankyu Hanshin Holdings Integrated Report 2021

Financial Section andCorporate Data

consolidated financial indicators and similar of fiscal 2018 are those after retrospective application of the relevant accounting standards.

76

Financial Section and Corporate Data

Business Risks
The various categories of risk to which business performance, stock price, ﬁnancial position and other aspects of the operations of
the Hankyu Hanshin Holdings Group are subject are detailed below. Information about future events that appears in this integrated
report was determined by the Group and was current as of March 31, 2021. These risks do not include all of the risks that theGroup could face.

1

Natural Disasters and Accidents

1.1 Risk from Epidemics
If an infectious disease becomes widespread and restrictions are

occur and disrupt the Group’s business operations whereby
affecting its business performance and financial position. Regarding
personal information, the Group manages databases containing

imposed on the movement and lives of people in various ways,

customer data and other personal information in each of its

it may materially affect the Company’s businesses. Specifically,businesses. If information is leaked due to an unexpected incident,

impacts may be seen in the Urban Transportation Businessclaims for damages and loss of public credibility may substantiallythrough effects such as a declining number of passengers on

affect the Group’s performance.

railways and other means of transportation; in the Real Estate

In accordance with internal regulations, such as fundamental

Business through temporary closings, the shortening of business

policies on electronic information security, the Group takes

hours and a decreasing number of visitors to leased facilities; in themeasures required to prevent leaks, falsification or unauthorizedEntertainment Business through the cancellation of and attendance

use of information and to operate its information systems

restrictions on professional baseball games and performances

securely. A framework is also in place to report and deal withof the Takarazuka Revue; in the Travel Business through the

problems promptly. For personal information, in addition tocancellation of overseas and domestic tours; and in the Hotelthe above, the Group has established regulations, such as

Business through falling demand from inbound tourism as well as

fundamental policies on the management of personal information,

domestic travel and other adverse effects.

and developed a system to help ensure the appropriate use andAs a result of COVID-19, the Group has been impacted as
described above. Depending on how the pandemic situation

protection of personal information. Relevant training programs for
employees are also provided.

evolves, the timing and degree by which demand recovers andother factors, the Group’s future business performance and3

financial position may fluctuate significantly.

The Group promotes compliance management in each of its

Given the circumstances, the Group has positioned fiscal

Compliancebusiness segments not only by strictly observing the Companies

2021 as a crisis recovery phase, during which it is committed toAct, Financial Instruments and Exchange Act, labor laws, Act

recovering its pre-COVID-19 business and preventing and limitingon the Protection of Personal Information, tax laws, economic

the deterioration of its financial position as much as possible.

laws, various industrial laws and other relevant laws, but also

1.2 Natural Disasters

noncompliance, claims for damages and loss of public credibility

through adherence to corporate ethics. However, in the event of
Operating across an extremely wide range of businesses in its

may affect the Group’s business performance and financial

Urban Transportation, Real Estate, Entertainment, Information andposition.

Communication Technology, Travel, International Transportation

The Group aims to meet the expectations of all its stakeholders

and Hotels segments, the Group maintains a correspondingly large

and operate as a corporate group that is trusted and applauded byassortment of facilities necessary for conducting business. In thethem. Based on the idea that one of the preconditions for achieving

event of earthquakes, typhoons or other natural disasters, large-

that goal is a compliance-focused business attitude, the Group has

scale accidents or acts of terrorism, the business performancedeveloped internal regulations such as a code of corporate ethics.

and financial position of the Group could be adversely affected

Various education and training programs are also implemented

by damage to these facilities, its customers and/or limitations

for employees to raise their awareness of compliance and prevent

placed on its business operations. Especially in recent years, it has

noncompliance. The Group has also established a whistleblower

been pointed out that climate change in the form of rising air andsystem that allows prompt detection of and dealing with events that

sea temperatures may increase the frequency of torrential rains

threaten our compliance stance and record.

and strong typhoons, and there is an increasing risk of the abovementioned adverse effects being brought about by these natural
disasters.

4

Finance (Interest-Bearing Debt)

The Group makes continuous capital investments in each of its

To minimize the impact of natural disasters and accidents, thebusiness segments. Most of the necessary funds are procured

Group is investing in the maintenance and renovation of existingby borrowing from financial institutions and issuing corporate

facilities, conducting seismic reinforcement work, and working

bonds, among other means. For this reason, in the case of

to develop systems with a priority on safety, especially at groupfuture increases in interest rates, changes in financial markets,companies engaged in the railway business and other public

or downgrades in the Group’s credit rating due to changes in its

transportation.

financial position, the Group’s interest expenses may increase,and raising additional funds on desirable terms, including funds

2

Information Management

The Group uses information systems in each of its business77

needed to refinance interest-bearing debt that reaches maturity,
may become difficult.

segments. If the functions of these systems are materially impacted

The balance of interest-bearing debt held by the Groupby accidents, disasters, human errors or cyber-attacks, system

as of the end of March 2021 on a consolidated basis was

failures or malfunctions, information leaks or other events may¥1,063,048 million. Going forward, the Group plans to make capital

Hankyu Hanshin Holdings Integrated Report 2021

investments required for maintaining and improving facilities, etc.,

5.4 Changes in Lifestyle and Workstyleand proceeding with large-scale projects such as the Umeda 1-1

People’s lifestyles and workstyles are now changing because

Project, construction of which is to be fully completed in the springof the COVID-19 pandemic. If effects of the pandemic andof 2022. Amid the deep impact of the COVID-19 pandemic andother events continue to transform people’s lives, it may affectdepending on the extent of the impact on the Group’s businessthe existing business models of the Group since it operates

performance, consolidated interest-bearing debt is expected tobusinesses closely related to the way people live.

increase to a certain degree.

In view of the new socioeconomic environment (the socalled“New Normal”) and the business environment in theits liquidity, take steps to avoid interest rate risks through fixed

New Normal era against the backdrop of rising awareness ofrate financing, and strive to maintain the soundness of its financial

Sustainable Development Goals (SDGs), the Group will update its

position by controlling interest-bearing debt through cost

Hankyu Hanshin Holdings Group Long-Term Management Vision

reduction and investment in maintenance and replacement.

ProfileThe Group will continue to diversify its funding and securefor 2025 (to be released in the spring of 2022). The Group will
also take a needs-oriented approach to offer and leverage a5Changes in Political, Economic and Social Environment

In accordance with the stipulations of Article 3 of the Railway

range of products and services in order to continuously improveits corporate value.

Business Law, the Group must obtain separate permissions

5.5 Addressing Climate Change

from the Ministry of Land, Infrastructure, Transport and Tourism

To cope with climate change, efforts are being made on a

(MLIT) for each category of railway operations on each routeglobal basis to reduce greenhouse gas emissions. Although thethat it intends to operate. Under Article 16 of the Law, a railway

Group’
s railway, its core business, has less of an environmental

operator must obtain MLIT’s approval for the passenger fares it

impact than other means of transportation, it may require future

intends to set and on each occasion when it wishes to change

investment or incur additional expense for measures required to

the fares. Therefore, these regulations may limit the activities

move toward a more decarbonized and recycling-based society.
Moreover, if the Group fails to adjust to these social demands,prescribed for the permissions or approvals of MLIT.

it may face a decrease in revenue due to the loss of public

In addition to the railway business, other businesses incredibility and/or financing difficulties.

which the Group engages are also subject to various laws

The Group recognizes that greenhouse gas reduction isand regulations. If these are tightened, the cost of regulatory

necessary for realizing a sustainable society. With“environmental

compliance may increase, while failure to comply with regulations

protection”set as one of the priority issues in its Sustainability

may limit the Group’s activities and affect the Group’s business

Declaration, the Group is moving forward with environmental

performance, financial status, etc.
The Group is working to minimize any such effects byprotection activities, including the setting of Key Performance
Indicators (KPIs) tied to the CO2 emission reduction rate. The
Group has also agreed to and is taking steps in line with thechanges in existing regulations and the establishment of newrecommendations of the Task Force on Climate-related Financial

Creating Real Value:
The Processes

investigating and ascertaining in advance information regarding
regulations and their respective impacts.

Creating Real Value:
Our Storyof the Group’s railway business. Notably, no fixed periods are

Messages fromthe Top Management

5.1 Legal Risk

Disclosures (TCFD). The Group will strive to solve various social
issues through its business in order to help realize a sustainable5.2	Decline in the Market Value of Assets Held by Members ofsociety.

the Hankyu Hanshin Holdings GroupIn the case of a substantial decline in the market value of inventory

5.6 International Operations

assets, property and equipment and intangible assets, investment

The Group’s Real Estate, Travel, International Transportation andsecurities or other assets, the recording of impairment loss orother businesses are also active overseas and are, therefore,
subject to various risk factors in each country, ranging fromperformance and financial position of the Hankyu Hanshin Holdings

drastic changes in political and economic conditions to incidents

Group.

of conflict, dispute or terrorism and the outbreak of infectious

5.3	Declining Birth Raterisk analyses supported by the advice of lawyers, consultants

In the Group’s mainstay Kyoto-Osaka-Kobe area, demographic

and other experts. However, in the case of an unexpectedchanges accompanying the declining birth rate and otherdevelopment, the business performance and financial condition

factors are expected to decrease demand for railway, bus,of the Group may be affected.

Creating Real Value:
The Foundations

valuation loss would likely have a negative impact on the businessdiseases. The Group is working to address these risks based ontaxi and other types of passenger transportation services, as
Financial Section andCorporate Data

well as decrease demand in other business areas. In addition,
securing personnel is likely to become difficult as an imbalance
between supply and demand develops in the labor market. Suchsituations could affect the business performance and financial
position of the Group.
In addition to efforts to increase the resident populationin areas along the railway lines operated by the Group andto increase the influx of visitors to these areas by capturing
the demand generated by foreign tourists, etc., the Group will
broadly promote efforts to improve productivity by introducing
advanced technologies.

Hankyu Hanshin Holdings Integrated Report 2021

78

Financial Section and Corporate Data

Consolidated Balance Sheets
As of March 31, 2020 and 2021

Millions of yen

2020

Thousands of U.S. dollars

2021

2021

Assets:Current assets:
Cash and deposits¥25,023¥27,546$248,162

Trade receivables

68,36672,991

657,577

Land and buildings for sale

121,813

158,899

1,431,523

Finished products and merchandise

2,596

2,509

22,604Work in progress

4,061

4,242

38,216

Materials and supplies

4,862

4,859

43,775

Other

36,47654,608491,964

Allowance for doubtful receivables(350)(3,153)262,984

325,3072,930,694

Buildings and structures–net (Note 7.3)

574,481556,183

5,010,658

Machinery, equipment and vehicles–net (Note 7.3)

66,263

63,112568,577

Land (Notes 7.3 and 7.5)

950,100

962,837

8,674,207

Construction in progress

198,838

244,591

2,203,523

Other–net (Note 7.3)

22,07620,995

189,144

1,811,760

1,847,720

16,646,126

Goodwill

14,22312,014

108,234

Other (Notes 7.2 and 7.3)

22,327

21,908

197,369

36,55033,923

305,613

Total current assets（216）

Noncurrent assets:
Property and equipment:

Total property and equipment (Notes 7.1 and 7.2)
Intangible assets:

Total intangible assets
Investments and other assets:
Investment securities (Notes 7.3 and 7.4)

302,951

333,7433,006,694

Deferred tax assets

6,956

6,792

61,189Net defined benefit asset

13,63620,186

181,856

Other (Note 7.3)

54,436

53,612482,991

Allowance for doubtful receivables

（195）

(256)

(2,306)

Total investments and other assets
Total noncurrent assets
Total assets

79

Hankyu Hanshin Holdings Integrated Report 2021

377,786

414,077

3,730,423

2,226,097

2,295,721

20,682,171

2,489,081

2,621,028

23,612,865

Millions of yen

2020

Thousands of U.S. dollars

2021

2021

Liabilities:
Current liabilities:
Trade payables¥

29,508¥

29,138$

262,505

16,727

16,374

147,514

Short-term borrowings (Note 7.3)

158,406

151,235

1,362,477—

30,000270,270

25,00010,00090,090

Lease obligations

2,404

3,206

28,883

Income taxes payable

13,683

2,192

19,748Commercial paper
Current portion of bonds

3,986

4,033

36,333

Other (Note 7.3)

144,917

134,437

1,211,144

Total current liabilities

394,634

380,618

3,428,991

Long-term debt (Note 7.3)

615,058

673,387

6,066,550

Bonds

97,000187,000

1,684,685

Lease obligations

5,609

8,219

74,045

Messages fromthe Top Management

Provision for bonuses

ProfileAccrued expenses

Long-term liabilities:

181,590

176,839

1,593,144

Deferred tax liabilities related to land revaluation (Note 7.5)

5,146

5,187

46,730Net defined benefit liability

63,02062,890566,577

Long-term deferred contribution for construction

74,657

91,792826,955

Other
Total long-term liabilities
Total liabilities

114,690

125,106

1,127,081

1,156,774

1,330,424

11,985,802

1,551,409

1,711,042

15,414,793

Creating Real Value:
Our Story

Deferred tax liabilities

Creating Real Value:
The Processes

Net assets:
Shareholders’equity:
Common stock

99,474



99,474



896,162

146,598

146,772

1,322,270

Retained earnings

685,087

636,095

5,730,586

Less treasury stock, at cost

（44,224）(48,701)(438,748)

Total shareholders’equity

886,935

833,640

7,510,270

13,792

24,600221,622

Creating Real Value:
The Foundations

Capital surplus

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities（28）

Revaluation reserve for land (Note 7.5)

5,511

3

27

5,483

49,396

Foreign currency translation adjustments

（427）

(615)

(5,541)

Cumulative adjustments related to retirement benefit plans

（136）

4,038

36,378

Total accumulated other comprehensive income

18,711

33,511

301,901

Non-controlling interests (Note 7.5)

32,02542,834

385,892

Total net assets

937,672

909,985

8,198,063

2,489,081

2,621,028

23,612,865

Total liabilities and net assets

Hankyu Hanshin Holdings Integrated Report 2021

Financial Section andCorporate Data

Deferred gains or losses on hedges

80Financial Section and Corporate Data

Consolidated Statements of Income
Years ended March 31, 2020 and 2021

Millions of yen

2020

Revenues from operations¥

Thousands of U.S. dollars

2021

762,650¥

2021

568,900$ 5,125,225

640,441

542,159

4,884,315

667,480

566,833

5,106,604

149

122

1,099

387

656

5,910

2,005

1,813

16,333

Costs of revenues from operations:Operating expenses and cost of sales of transportation
Selling, general and administrative expenses (Note 8.1)
Total costs of revenues from operations (Note 8.2)
Operating income

27,03924,674

95,170222,288

2,066

18,613Non-operating income:Interest income
Dividend income
Gain on foreign exchange
Equity in income of affiliates
Miscellaneous income
Total non-operating income

1,399

980

3,389

8,829

—

7,331

—

3,572

32,180Non-operating expenses:
Interest expenses

9,267

Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss)

8,885

80,045—

1,622

14,613

13,706

13,262

119,477

Equity in loss of affiliates

4,438

2,754

88,795

24,811(7,623)(68,676)

Extraordinary income:Gain on contributions for construction

4,643

Other
Total extraordinary income

3,485

31,396—

8,715

78,514

6,038

13,167

118,622

Employment adjustment subsidies

1,394

966

8,703

Extraordinary loss:
Loss on reduction of noncurrent assets

4,636

Total extraordinary loss
Income (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to owners of the parent

32,144

174,613

18,618—Structural reform-related loss (Note 8.4)
Other

3,568

19,382—COVID-19-related losses (Note 8.3)

3,450

167,730

4,989

8,086

44,94646,557419,432

86,746(41,013)(369,486)

1,599(10,683)(96,243)

56,911(34,535)(311,126)

54,859(36,702)(330,649)

28,235

4,205

29,83437,883(6,478)2,051(58,360)

2,166

19,514

Consolidated Statements of Comprehensive Income
Years ended March 31, 2020 and 2021

Millions of yen

2020

Net income (loss)¥ 56,911

Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

Foreign currency translation adjustments

Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income (Note 9)Comprehensive income

Comprehensive income attributable to:
Owners of the parent

Non-controlling interests

81

Hankyu Hanshin Holdings Integrated Report 2021

Thousands of U.S. dollars

2021（5,122）
314
—

（45）

¥

2021

(34,535)$

(311,126)

4,150

37,387

(41)

(369)

32

(386)

288

(3,477)（2,401）

3,904

35,171（5,364）

4,071

36,676（12,618）

11,732

105,694

44,292(22,803)(205,432)

42,242(24,476)(220,505)

2,049

1,672

15,063

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2020 and 2021

Millions of yen
Shareholders’equity

Balance as of March 31, 2019

Commonstock

CapitalsurplusRetainedearnings

Less treasury
stock, at cost

¥99,474¥146,591¥641,731¥（34,400）

Total
shareholders’equity¥853,397

Changes in items during the period:

Reversal of revaluation reserve for land

（11,020）（11,020）54,85954,85911

11

Purchase of treasury stock
Disposal of treasury stock（0）

Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders（0）Change in scope of consolidation

6

ProfileDividends from surplus
Net income (loss) attributable to owners of the parent（0）（9,960）（9,960）

136

136
（0）

（495）

（489）
0

0

Messages fromthe Top Management

Changes in equity in affiliates accounted
for by equity-method treasury stock
Net changes in items other than shareholders’equity
Total changes in items during the period
Balance as of March 31, 2020—

6

43,355（9,824）33,53899,474

146,598

685,087(44,224)

886,935

Changes in items during the period:
Dividends from surplus(12,188)(12,188)

Net income (loss) attributable to owners of the parent(36,702)(36,702)

Reversal of revaluation reserve for land—

Purchase of treasury stock(4,660)(0)Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders

187

176

Change in scope of consolidation

187

Creating Real Value:
Our Story

Disposal of treasury stock(4,660)

176

(2)

(100)

(103)

Changes in equity in affiliates accounted
for by equity-method treasury stock

(4)

(4)

Net changes in items other than shareholders’equity
Total changes in items during the period
Balance as of March 31, 2021—

174

(48,991)(4,477)(53,295)

99,474

146,772

636,095(48,701)

833,640

Creating Real Value:
The Processes

Thousands of U.S. dollars
Shareholders’equity
Commonstock

Balance as of March 31, 2020

$896,162

CapitalsurplusRetainedearnings$1,320,703$6,171,955

Less treasury
stock, at cost

Total
shareholders’equity$(398,414)$7,990,405

Changes in items during the period:(109,802)(109,802)(330,649)(330,649)

Reversal of revaluation reserve for land

Creating Real Value:
The Foundations

Dividends from surplus
Net income (loss) attributable to owners of the parent—

Purchase of treasury stock
Disposal of treasury stock(0)

Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders(41,982)(41,982)

1,685

1,685

1,586

Change in scope of consolidation

(18)

1,586
(901)

Changes in equity in affiliates accounted
for by equity-method treasury stock

(928)
(36)

(36)

Net changes in items other than shareholders’equity
Total changes in items during the period

—

1,568

(441,360)(40,333)(480,135)

896,162

1,322,270

5,730,586(438,748)

7,510,270

Hankyu Hanshin Holdings Integrated Report 2021

Financial Section andCorporate Data

Balance as of March 31, 2021

82

Financial Section and Corporate Data

Millions of yen
Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Balance as of March 31, 2019¥24,144

Deferred gains
Revaluation
or losses onreserve for land
hedges¥（325）¥5,523Foreigncurrencytranslation
adjustments

Cumulative
adjustments
related toretirement
benefit plans¥（163）¥2,287

Total
accumulated Non-controlling Total net assetsinterests
othercomprehensive
income¥31,465¥30,517¥915,381

Changes in items during the period:
Dividends from surplus（11,020）

Net income (loss) attributable to owners of the parent

54,859

Reversal of revaluation reserve for land

11

Purchase of treasury stock（9,960）

Disposal of treasury stock

136

Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders（0）Change in scope of consolidation（489）

Changes in equity in affiliates accounted
for by equity-method treasury stock
Net changes in items other than shareholders’equity
Total changes in items during the period
Balance as of March 31, 2020

0
（10,351）

296

（11）

（263）

（2,423）（12,754）

1,507（10,351）

296

（11）

（263）

（2,423）（12,754）

1,507

22,291

13,792

(28)

5,511

(427)

(136)

18,711

32,025

937,672（11,246）

Changes in items during the period:
Dividends from surplus(12,188)

Net income (loss) attributable to owners of the parent(36,702)—

Reversal of revaluation reserve for land
Purchase of treasury stock(4,660)

Disposal of treasury stock

187

Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders

176

Change in scope of consolidation(103)

Changes in equity in affiliates accounted
for by equity-method treasury stock
Net changes in items other than shareholders’equity(4)
10,808

32

(27)

(188)

Total changes in items during the period

10,808

32

(27)

(188)

4,175

14,80010,808(27,686)

Balance as of March 31, 2021

24,600

3

5,483

(615)

4,038

33,511

42,834

909,985

4,175

14,80010,80825,608

Thousands of U.S. dollars
Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Balance as of March 31, 2020

$124,252

Deferred gains
Revaluation
or losses onreserve for land
hedges$(252)$49,649

Foreigncurrencytranslation
adjustments$(3,847)

Cumulative
adjustments
related toretirement
benefit plans$(1,225)

Total
accumulated Non-controlling Total net assetsinterests
othercomprehensive
income$168,568$288,514$8,447,495

Changes in items during the period:
Dividends from surplus(109,802)

Net income (loss) attributable to owners of the parent(330,649)—

Reversal of revaluation reserve for land
Purchase of treasury stock(41,982)

Disposal of treasury stock

1,685

Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders

1,586

Change in scope of consolidation(928)

Changes in equity in affiliates accounted
for by equity-method treasury stock(36)
97,369288(243)(1,694)

37,613

133,333

97,369230,703

Total changes in items during the period

97,369288(243)(1,694)

37,613

133,333

97,369(249,423)

Balance as of March 31, 2021

221,62227

49,396(5,541)36,378301,901

385,892

8,198,063

Net changes in items other than shareholders’equity

83

Hankyu Hanshin Holdings Integrated Report 2021

Consolidated Statements of Cash Flows
Years ended March 31, 2020 and 2021

Millions of yen

2020

Thousands of U.S. dollars

2021

2021

Cash flows from operating activities:
Income (loss) before income taxes
Depreciation and amortization (Note 11.2)
Structural reform-related loss
Amortization of goodwill¥86,746¥(41,013)$

(369,486)

56,54257,502

518,036—

18,618167,730

2,508

22,595（3,389）1,622

14,613

Increase (decrease) in net defined benefit liability（1,813）(1,112)(10,018)

（49）

197

1,775

Increase (decrease) in allowance for doubtful receivables
Interest and dividend income(1,102)(9,928)

9,267

8,885

80,045

Loss on reduction of noncurrent assets

4,636

3,568

32,144Gain on contributions for construction（4,643）(3,485)(31,396)

Decrease (increase) in trade receivables

25,035(4,354)(39,225)

2,803

Decrease (increase) in inventories(36,799)(331,523)

Increase (decrease) in trade payables（17,884）(632)(5,694)Other（14,727）(2,261)(20,369)

Subtotal

143,400

2,140

19,279

4,362

4,129

37,198Interest paid

（9,381）(8,899)(80,171)

Income taxes (paid) refunded（15,295）(29,871)(269,108)

Net cash provided by operating activities

123,086(32,501)(292,802)（96,028）(136,958)(1,233,856)

19,911

179,378

Creating Real Value:
Our Story

Interest and dividends received

Messages fromthe Top Management（1,548）Interest expenses

Profile2,426

Equity in (income) losses of affiliates

Cash flows from investing activities:
Purchases of noncurrent assets
Proceeds from sales of noncurrent assets
Purchases of investment securities884(14,137)(127,360)

19,631

29,249263,505

Expenditure for long-term loans receivable（23,767）(744)(6,703)Other（1,557）

528

4,757

（128,498）(102,151)(920,279)

21,039(17,446)(157,171)—

30,000270,270

Proceeds from long-term debt

28,330103,350

931,081

Repayment of long-term debt

（34,365）(34,696)(312,577)

29,76699,474896,162

Redemption of bonds（20,000）(25,000)(225,225)

Purchases of treasury stock（9,960）(4,660)(41,982)

Dividends paid

（11,020）(12,188)(109,802)

（526）

(724)

(6,523)（2,298）(3,476)(31,315)964

Net cash used in investing activities

Creating Real Value:
The Processes（27,660）

Receipt of contributions for construction

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial paper

Other
Net cash used in financing activities

134,631

1,212,892

（7）

(354)

(3,189)

Increase (decrease) in cash and cash equivalents（4,454）(375)(3,378)Cash and cash equivalents at beginning of year

27,58923,526211,946

391

2,072

18,667

23,52625,222

227,225

Effect of exchange rate changes on cash and cash equivalents

Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of year (Note 11.1)

Hankyu Hanshin Holdings Integrated Report 2021

Financial Section andCorporate Data

Dividends paid to non-controlling shareholders ofconsolidated subsidiaries

Creating Real Value:
The Foundations

Proceeds from new bonds issued

84

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements
1.

Framework for Preparing Consolidated Financial Statements 

1.1

Method of preparation for consolidated financial statements

1.3

Special measures to ensure the appropriateness of
consolidated financial statements and other reports

The Company’s consolidated financial statements were prepared inaccordance with the “Regulations Concerning Terminology, Forms and

The Company makes special efforts to ensure the appropriateness of its

Preparation Methods of Consolidated Financial Statements” (Finance Ministry

consolidated financial statements and other reports. In addition to subscribing

Ordinance No. 28 of 1976).

to related publications, it has joined the Financial Accounting Standards
Foundation and participates in seminars and other events held by the

1.2

Audit verification

Foundation, audit firms and other relevant organizations to establish a system

The Company’s consolidated financial statements for the fiscal year ended

for understanding the accounting standards in detail and responding suitably

March 31, 2021 (April 1, 2020 to March 31, 2021) were audited by KPMG

to changes made to them. The Company also compiles with and provides

AZSA LLC, as per Article 193-2(1) of Japan’s Financial Instruments andcommon manuals for preparing the consolidated financial information on

Exchange Act.

a Groupwide basis and arranges training courses for accounting staff ataffiliates.

1.4

Translation into U.S. dollars

The U.S. dollar amounts have been translated for convenience only at ¥111
to U.S. $1.00, the prevailing exchange rate on the Tokyo Foreign Exchange
Market as of March 31, 2021.

2.

Basis of Preparation of Consolidated Financial Statements 

2.1

Scope of consolidation

2.3

Number of consolidated subsidiaries—95.

Items related to fiscal year-ends, etc., for consolidated
subsidiaries

2.1.1 Number and names of consolidated subsidiaries

Of the consolidated subsidiaries, the closing date of HANKYU HANSHIN

Names of primary consolidated subsidiaries are listed on page 113.

EXPRESS (USA) INC., HANKYU HANSHIN EXPRESS (DEUTSCHLAND) GMBH

As from the consolidated fiscal year ended March 31, 2021, the following

and 21 other companies is December 31, and that of Nihon Protech Co., Ltd.

companies have been included in the scope of consolidation: Hankyu Railway

is January 31. The consolidated financial statements have been prepared

Service Co., Ltd. due to the establishment of the company and Hankyu

using the financial statements based on the closing date of each company,

Hanshin Marketing Solutions Inc. and two other companies in view of theirand major transactions conducted between the individual closing dates andincreased significance.

the consolidated closing date have been adjusted for as necessary for the

Additionally, in the same period, Hokushin Kyuko Railway Co., Ltd. andconsolidation.

one other company were excluded from the scope of consolidation due tothe completion of their liquidation.

2.4

Accounting policies

2.4.1 Valuation standards and methods for major assets
2.1.2 Names of major nonconsolidated subsidiaries

I.

Hankyu Mediax Co., Ltd.

Available-for-sale securities:

Nonconsolidated subsidiaries have been excluded from the scope ofa.

Securities
Available-for-sale securities with fair market values:

consolidation because the total amounts of their entire assets, sales, net

The market value method is applied based on the market price, etc., at

income or loss (amount equivalent to equity interests), retained earnings

the fiscal year-end. (Related valuation differences are directly included(amount equivalent to equity interests) and other figures are limited, and theunder net assets and the cost of securities sold is determined by theeffect on the consolidated financial statements as a whole is negligible.

moving average method.)b. Available-for-sale securities without fair market values:

2.2

Items related to application of equity-method accounting

The moving average cost method is applied.
For investments in limited liability investment partnerships and similar

2.2.1 Number and names of affiliates for which equity method is appliedinvestments, however, the Company’s share of assets held by such

Number of affiliates for which equity method is applied—11.

partnerships is recorded.

The names of the primary companies are listed on page 113.
2.2.2 Names of nonconsolidated subsidiaries and affiliates for which equity
method is not appliedII.

Derivatives

The market value method is applied.

The nonconsolidated subsidiaries including Hankyu Mediax Co., Ltd., andaffiliates including OS Co., Ltd., to which the equity method does not apply

III. Inventories

are accounted for using the cost method rather than the equity methoda.

Land and buildings for sale:because the total amounts of their net income or loss (amount equivalent to

The identified cost method is applied. (Balance sheet values areequity interests), retained earnings (amount equivalent to equity interests)

calculated by writing down book values based on decreased profitability.)

and other figures are limited, and the effect on the consolidated financial
statements as a whole is negligible.

b. Other inventories:
The moving average cost method is applied. (Balance sheet values arecalculated by writing down book values based on decreased profitability.)

85

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

2.4.2

Designation accounting applies to foreign currency-denominatedDepreciation methods for major depreciable assets

I.

Property and equipment (excluding leased assets)

receivables and payables that have forward exchange contracts and whicha.

Replacement assets of railway operations:satisfy the requirements for designation accounting.

Replacement method (mainly the declining-balance method) is applied.
b. Other property and equipment:

II.

Hedging instruments and hedged items

While property and equipment (excluding leased assets) are depreciatedMain hedging instruments and hedged items are as follows:

mainly by the declining balance method, some assets are depreciated bya. Hedging instruments: Forward exchange contracts, currency swap
Hedged items: Foreign currency receivables and payables and future

However, regarding the abovementioned “Replacement assets offoreign currency transactions

railway operations” and “Other property and equipment,” depreciation ofbuildings acquired on or after April 1, 1998 (excluding facilities attached

Profilecontracts and currency option contracts

the straight-line method.

b. Hedging instruments: Interest rate swap contracts and interest rate

to buildings) and depreciation of facilities and structures that are

option contracts

attached to buildings and which were acquired on or after April 1, 2016

Hedged items: Loans payable and bonds

are calculated using the straight-line method.
Intangible assets (excluding leased assets)

Intangible assets (excluding leased assets) are amortized using the straight-

Messages fromthe Top Management

III. Hedging policy
II.

The Group is exposed to the risk of foreign exchange and interest rate
fluctuations and uses derivatives to hedge risks.

line method.
Internal-use software is amortized by the straight-line method over its
useful life (mainly 5 years).

IV. Method for evaluating hedge effectiveness
Other than when the effectiveness of hedges is obvious, hedge effectivenessis evaluated semiannually using the comparison and analysis method.

III. Lease assets
Lease assets are depreciated using the straight-line method with the lease

V. Other risk management methods concerning hedge accounting
Internal rules regarding the segregation of duties, maximum transaction

residual value if there is an agreement for a residual value guarantee).

amounts, etc., have been established for the use of derivative transactions

Creating Real Value:
Our Story

term as the useful life and a residual value of zero (an amount of guaranteedbased on which derivative transactions are used. The implementation and
2.4.3
I.

Accounting standards for significant transactions

Allowance for doubtful receivables

management of derivative transactions are carried out by the accounting
department with the approval of the decision makers in each Group

Allowance for doubtful receivables is provided based on the ratio of pastcompany. An internal control system has been developed to ensure that theloan loss experience for general accounts and individually estimatedcontract signing and termination comply with the internal rules.

uncollectible amounts for certain individual accounts.
2.4.7
Provision for bonuses

Method and period of amortization of goodwill

Goodwill is amortized, in general, in equal amounts over 5 years. The goodwill

The Company recognizes as provision for bonuses the amount expected toresulting from the management integration with Hanshin Electric Railway

be paid to employees as bonuses for the fiscal year.

Co., Ltd. in the fiscal year ended March 31, 2007 is being amortized in equal

Creating Real Value:
The ProcessesII.

amounts over 20 years.
2.4.4

Accounting methods for retirement benefits

In calculating the amount of retirement benefit obligations, the benefit formula2.4.8

method is used to attribute the estimated amount of retirement benefits tothe period up to March 31, 2021.

Scope of cash and cash equivalents included in consolidated
statements of cash flows

In preparing the consolidated statements of cash flows, cash on hand, readily
available deposits and short-term highly liquid investments without material
risk of changing their value and with maturities not exceeding three months

remaining years of service of the employees at the time when these costs areat the time of purchase are considered to be cash and cash equivalents.

Creating Real Value:
The Foundations

Past service cost is recorded in expenses using the straight-line method
over a certain number of years (mainly 10 years), which is within the average
incurred.
Actuarial differences are recorded in expenses from the following

2.4.9

Other significant matters for preparing consolidated financial
statements

year using the straight-line method over a certain number of years (mainly
10 years), which is within the average remaining years of service of theI.

Accounting for contributions for construction in railway operations

employees at the time when these costs are incurred.

The Company receives contributions for construction from local governments andother organizations that cover a portion of construction expenses arising from

2.4.5

the construction of continuous grade separations in railway operations. Whencurrencies into Japanese yenconstruction is completed, noncurrent assets acquired as a result of accepting

The assets and liabilities of overseas subsidiaries are converted into yen

these contributions for construction are recognized at acquisition cost after

based on the spot exchange rate on the balance sheet date, and income

deducting the amount of the contributions.

and expenses of overseas subsidiaries are converted into yen based on the

In the consolidated statements of income, gain on contributions foraverage exchange rate during the relevant period. Differences in conversion

construction is recognized in extraordinary income, and the acquisition

are included in foreign currency translation adjustments and non-controlling

cost of noncurrent assets, after deducting the amounts equivalent to theinterests in the net assets section.

contributions for construction, is recognized in extraordinary loss as loss on

Financial Section andCorporate Data

Basis for converting significant assets and liabilities in foreign

reduction of noncurrent assets.
2.4.6
I.

Significant hedge accounting methods

Method of hedge accounting

Deferred hedge accounting is applied.

II.

Accounting for consumption tax

Accounting for consumption tax is based on the tax exclusion method.

Exceptional accounting applies to interest rate swaps that satisfy therequirements for exceptional accounting for interest rate swaps.

III. Adoption of consolidated tax payment system
A consolidated tax payment system has been adopted.

Hankyu Hanshin Holdings Integrated Report 2021

86

Financial Section and Corporate Data

Notes to the Consolidated Financial StatementsIV.	Application of tax effect accounting for the transition from a consolidated
tax payment system to a group taxation system“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28,
February 16, 2018) but applied provisions of pre-amended tax laws whenWith regard to Paragraph 3 of the “Practical Solution on the Treatment of Tax

calculating the amounts of deferred tax assets and liabilities that relate to

Effect Accounting for the Transition from the Consolidated Taxation System totransitioning to a group taxation system, which was established under the Act

the Group Tax Sharing System” (PITF No. 39, March 31, 2020), the Company

on the Partial Revision of the Income Tax Act, etc. (No. 8, 2020), and related

and its domestic consolidated subsidiaries did not follow Paragraph 44 of theamendments of tax laws for transitioning to a single tax payment system.

3.

Significant Accounting Estimates 

Accounting estimates are reasonably calculated based on the information

3.2

available when preparing the consolidated financial statements. Among the

3.2.1	Amount recorded in the consolidated financial statements for theamounts recorded in the consolidated financial statements for the fiscal year

Impairment of noncurrent assets
fiscal year ended March 31, 2021

ended March 31, 2021 based on accounting estimates, the items that may

As stated in Note 8, “Consolidated Statements of Income” an impairment loss

have a significant impact on the consolidated financial statements for the nextof 9,676 million yen for noncurrent assets held by Hankyu Hanshin Hotels

fiscal year are as follows.

Co., Ltd. was recorded. Property and equipment held by the company was
51,144 million yen.

3.1

Recoverability of deferred tax assets

3.1.1	Amount recorded in the consolidated financial statements for the
fiscal year ended March 31, 2021
Deferred tax assets of 63,542 million yen (amount before offsetting deferred
tax liabilities)

3.2.2	Other information that assists users of financial statements inunderstanding the nature of the estimates
I.	Method used to calculate the amounts recorded in the consolidated
financial statements for the fiscal year ended March 31, 2021
In principle, the Group classifies its assets into groups by business segment

3.1.2	Other information that assists users of financial statements inunderstanding the nature of the estimates
I.	Method used to calculate the amount recorded in the consolidated
financial statements for the fiscal year ended March 31, 2021

as determined for management purposes or on an individual property basis.
If there are indications of impairment, book value is compared to the total
amount of undiscounted future cash flows obtained from the asset group to
determine whether it is necessary to recognize an impairment loss. Based onDeferred tax assets were recorded based on future taxable income, etc.,

the result of the determination if recognizing an impairment loss is necessary

estimated in the medium-term management plan pursuant to the “Implementation

because the total amount of undiscounted future cash flows falls below the

Guidelines on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26).

book value, then the book value is reduced to the recoverable amount (netrealizable value or value in use, whichever is higher), and the reduction inII.	Major assumptions used to calculate the amounts recorded in thebook value is recognized as an impairment loss.

consolidated financial statements for the fiscal year ended March 31, 2021

In the Hotels Business, some hotels continued to have operating loss

Estimates of future taxable income were based on the medium-termand others were considered to have indications of impairment due to a

management plan. Additionally, the following assumptions were made toconsiderable deterioration in the business environment, amid the COVID-19

reflect the effects of COVID-19 on the accounting estimates.

pandemic. As a result for hotels requiring recognition of an impairment loss,

Socio-economic activities that affect the Group are expected to gradually
recover through three roughly classified steps as below.

the book value of such hotels was reduced to the recoverable amount, andthe reduction in the book value was recorded as an impairment loss.

First step (until March 2022): The movement of people resumes inneighborhoods in Japan and gradually extends beyond. The effects ofphysical distancing are also gradually mitigated.
Second step (April 2022-March 2023): People come and go not only
within Japan but throughout the world, recovering gradually.
Third step (April 2023 and beyond): The impact of COVID-19 diminishes

II.	Major assumptions used to calculate the amounts recorded in the
consolidated financial statements for the fiscal year ended March 31, 2021
Estimates of future cash flows were based on the medium-term management
plan, and the impact of COVID-19 was based on the same assumptions as in
Section 3.1, “Recoverability of deferred tax assets” stated above.

and domestic and overseas economic activities recover to a considerable
extent.
However, the Group considers that its business environment will not fully
return to its pre-COVID-19 state even in the third step.

III.	Impact on consolidated financial statements for the next fiscal year
Future cash flows may be affected by uncertain future economic conditions
and fluctuations in market prices in addition to the COVID-19 infection status.
If actual results deviate from estimates, it may have a significant impact on

III.	Impact on the consolidated financial statements for the next fiscal year
The timing and amount of taxable income may be affected by uncertain
future economic conditions and COVID-19 infection status. If the actual
timing and amount of taxable income differ from estimates, the amount ofdeferred tax assets that are considered recoverable may fluctuate and have asignificant impact on the consolidated financial statements for the next fiscal
year.

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Hankyu Hanshin Holdings Integrated Report 2021

the consolidated financial statements for the next fiscal year.

Notes to the Consolidated Financial Statements

4.

Standards and Guidance Not Yet Adopted 

4.1	Accounting Standard for Revenue Recognition

4.2	Accounting Standard for Fair Value Measurement

The following standard and guidance were issued but not yet adopted.

•	“Accounting Standard for Fair Value Measurement” (ASBJ Statement No.

•	“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020)

30, July 4, 2019)•	“Accounting Standard for Measurement of Inventories” (ASBJ Statement•	“Implementation Guidance on Accounting Standard for Revenue

No. 9, July 4, 2019)•	“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,•	“Implementation Guidance on Disclosures about Fair Value of Financial
Instruments” (ASBJ Guidance No. 19, March 31, 2020)

ProfileRecognition” (ASBJ Guidance No. 30, March 26, 2021)

July 4, 2019)•	“Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, July 4, 2019)

4.1.1	Outline•	“Implementation Guidance on Disclosures about Fair Value of Financial
Instruments” (ASBJ Guidance No. 19, March 31, 2020)

The International Accounting Standard Board (IASB) and the Financial
Accounting Standard Board (FASB) jointly developed comprehensive

4.2.1	Outline

with Customers was issued in May 2014 (IFRS No. 15 by IASB, and Topic 606

Given that the International Accounting Standards Board (IASB) and theby FASB).

Financial Accounting Standards Board (FASB) set out almost identical detailed

IFRS No. 15 was applied for annual reporting periods beginning on or

guidance for the measurement of fair value (respectively IFRS No. 13 “Fairafter January 1, 2018, Topic 606 was also applied from annual reporting

Value Measurement” under International Financial Reporting Standards (IFRS)

periods beginning December 15, 2017. Based on such a situation, the ASBJ

and Accounting Standards Codification Topic 820 “Fair Value Measurement”

developed the comprehensive accounting standard for revenue recognition/

under US-GAAP), the ASBJ released the “Accounting Standard Fair Valuethe implementation guidance and issued them together.

Measurement” etc., in an effort to establish consistency between Japan’s

On the ASBJ’s basic policy for development of accounting standard forrevenue recognition, the basic principles of IFRS No. 15 were incorporated

Messages fromthe Top Management

accounting standard for revenue recognition and the Revenue from Contracts

accounting standards and international accounting standards centering on
guidance and disclosure of the fair value of financial instruments.
On the ASBJ’s basic policy for development of accounting standard

from the viewpoint of comparability among financial statements which is one

for fair value measurement, in order to enhance the comparability ofof merits for consistency with IFRS No. 15. If there are any items which should

financial statements between domestic and foreign companies the standard

be considered in current practices in Japan, alternative treatments would be

essentially adopted the entire provisions of IFRS No. 13. Moreover, withadded to the extent of not losing the comparability.

consideration for the accounting practice in Japan to date, to the extent

Creating Real Value:
Our Story

into the ASBJ Statement No. 29 as starting points, the Statement was set out,that the comparability of financial statements is not materially impaired,
4.1.2 Effective datealternative accounting treatments are provided for select items.

Effective from the beginning of the fiscal year ended March 31, 2022.
4.2.2	Effective date
Creating Real Value:
The Processes

4.1.3 Effects of the application of the standards

Effective from the beginning of the fiscal year ended March 31, 2022.

The Company and its consolidated domestic subsidiaries are currently
in the process of determining the effects of these new standards on the

4.2.3 Effects of the application of the standards

consolidated financial statements.

The Company and its consolidated domestic subsidiaries are currently
in the process of determining the effects of these new standards on the
consolidated financial statements.

Changes in Presentation 

5.1

Application of “Accounting Standard for Disclosure of

5.2

Accounting Estimates”“Loss on retirement of noncurrent assets” in non-operating expenses,

In applying the “Accounting Standard for Disclosure of Accounting Estimates”

Consolidated Statements of Income

which was listed separately in the previous period, has been included in“Miscellaneous expenses” under non-operating expenses starting from theEstimates have been presented starting from the consolidated financial

current consolidated fiscal year, because of its decreased significance.

Financial Section andCorporate Data

(ASBJ Statement No. 31, March 31, 2020), Notes to Significant Accounting
statements for the fiscal year ended March 31, 2021.

Creating Real Value:
The Foundations

5.

As a result, a “Loss on retirement of noncurrent assets” of 1,487 million

However, the notes do not include the information related to the fiscal

yen, which was listed as an item in non-operating expenses in the consolidated

year ended March 31, 2020, in accordance with the transitional treatment

income statement for the previous period, was reclassified as “Miscellaneous

stipulated in Paragraph 11 of the standard.

expenses.”

Hankyu Hanshin Holdings Integrated Report 2021

88

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

6.

Additional Information 

6.1

Performance-based stock compensation plan for directors,

Properties Corp.

etc., of the Company

The System uses an officer compensation BIP (Board Incentive Plan)

6.1.1 Outline of transaction

trust under which shares in the Company will be provided to, and money

To further enhance motivation to improve corporate value and business

equivalent to the exchange value of shares in the Company will be paid toperformance, and to provide an incentive to improve shareholder value, thedirectors and others based on performance and position.

Company has introduced a stock compensation system (hereinafter referred
6.1.2 Shares in the Company remaining under the trust

to as the “System”) for directors of the Company (excluding those who arealso members of audit and other committees) in a position of chairman orShares in the Company remaining under the trust were listed as treasury

president.

stock in the net assets section on a book value basis for trust (excluding

Moreover, Hankyu Corporation, Hanshin Electric Railway Co., Ltd., andancillary expenses). The book value of and the number of shares of treasury

Hankyu Hanshin Properties Corp. have adopted the System for full-time

stock at the end of the fiscal year ended March 31, 2020 were 1,479 million

directors and corporate officers, excluding outside directors and nonresidents

yen and 367,308 shares, and at the year ended March 31, 2021, the amountsof Japan and employees of other companies on loan to Hankyu Hanshinwere 1,610 million yen and 408,268 shares, respectively.

7.

Consolidated Balance Sheets 

7.1

Accumulated depreciation of property and equipment
Millions of yen

7.3

7.2

from the acquisition cost of noncurrent assets

Thousands of U.S. dollars

2020

2021

2021

¥ 1,177,475¥ 1,180,943$ 10,639,126

Accumulated contributions for construction directly deducted

Millions of yen

Thousands of U.S. dollars

2020

2021

2021

¥ 449,278¥ 447,657$ 4,032,946

Pledged assets and secured liabilities

The following table shows the assets pledged as collateral. Amounts in parentheses () indicate those related to a railway foundation.

Millions of yen

Thousands of U.S. dollars
2021

2020

2021

Property and equipment:¥ 201,238¥ (201,238)¥ 198,766¥ (198,766)$ 1,790,685

Machinery, equipment and vehicles

Buildings and structures

50,423(50,423)

51,725(51,725)465,991$ (1,790,685)(465,991)

Land

241,625(241,625)

241,048(241,048)

2,171,604(2,171,604)

Other

2,898

(2,898)2,387(2,387)21,505(21,505)

179

(179)

118

(118)

1,063

(1,063)

Intangible assets:
Other
Investments and other assets:
Investment securities

292

(—)

231

(—)

2,081

(—)

Other

372

(—)

441

(—)

3,973

(—)

Total

497,029(496,364)

494,720(494,047)

4,456,937(4,450,874)

In addition to the above, the Company pledged investment securities (fiscal year ended March 31, 2020: 800 million yen, fiscal year ended March 31, 2021:
800 million yen) as collateral for loans of third parties.
The following table shows the secured liabilities. Amounts in parentheses () indicate those related to a railway foundation.
Millions of yen

Thousands of U.S. dollars
2021

2020

2021

Current liabilities:
Short-term borrowings
Other

¥

9,784
120

¥

(9,784)(—)¥

10,050135¥(10,050)(—)$

90,541
1,216$(90,541)(—)

Long-term liabilities:

89

Long-term debt

114,522(114,522)

120,322(120,322)

1,083,982(1,083,982)

Total

124,427(124,307)

130,507(130,372)

1,175,739(1,174,523)

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

7.4

The following table shows the securities of nonconsolidated subsidiaries and affiliates.
Thousands of
U.S. dollars

Millions of yen
Investment securities

2020

2021

2021

¥ 257,644¥ 257,867$ 2,323,126

7.6

Two consolidated subsidiaries and an equity-method affiliate revaluated

The Company and its subsidiaries have provided a liability guarantees forland for business use based on the Law Concerning Revaluations of Landloans of the companies, etc., listed below.

(Law No. 34, promulgated on March 31, 1998) and the Law to Partially
Modify the Law Concerning Revaluations of Land (Law No. 19, promulgatedon March 31, 2001). Of the valuation differences identified as a result of
this, the consolidated subsidiaries recorded the amount corresponding toContingent liabilities

Fiscal year ended March 31, 2020
Millions of yen
Nishi-Osaka Railway Co., Ltd.

¥ 17,266
6,013

liabilities related to land revaluation” and the amount attributable to minority

Overseas affiliates

5,473

shareholders as “Non-controlling interests.” The amount remaining after

Other (four companies)

reserve for land.” The equity-method affiliate recorded the amount

Messages fromthe Top Management

the taxes on the valuation difference in the liability section as “Deferred tax

Borrowers on loans for purchase of landand buildings

subtracting these was recorded in the net assets section as “Revaluation

Profile

7.5

259

Total

29,013

corresponding to its equity in the valuation difference (after subtracting taxes)
Fiscal year ended March 31, 2021

in the net assets section as “Revaluation reserve for land.”•	Revaluation methodThe revaluation amounts were determined based on the revaluatedMillions of yen

Thousands of
U.S. dollars

Nishi-Osaka Railway Co., Ltd.

¥ 16,389$ 147,649

the Enforcement Ordinance for the Law Concerning Land Revaluation

Borrowers on loans for purchase of landand buildings

13,953

125,703

Overseas affiliates

6,728

60,613(Ordinance No. 119, promulgated on March 31, 1998).
•	Date of revaluation: March 31, 2002
Millions of yen
2020

2021

2021

Total

285

2,568

37,356

336,541

In addition to the above, a subsidiary of the Company submitted letters ofawareness for management guidance (fiscal year ended March 31, 2020:¥ (6,215)¥ (6,274)$ (56,523)

4,677 million yen, fiscal year ended March 31, 2021: 1,196 million yen) in
connection with the fund procurement of overseas affiliates.

Creating Real Value:
The Processes

Difference between themarket value as of March
31 of the lands for which
reevaluation was madeand the book value ofafter reevaluation

Thousands of
U.S. dollars

Other (five companies)

Creating Real Value:
Our Storyvalue of noncurrent assets provided for in Article 2, Paragraph 3 ofCreating Real Value:
The Foundations
Financial Section andCorporate Data

Hankyu Hanshin Holdings Integrated Report 2021

90

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

8.

Consolidated Statements of Income 

8.1

The breakdown of selling, general and administrative expenses
is shown below.

The retirement benefit expenses and the main expense items
and monetary amounts within the amounts of allowance and

2020

2021

2021

¥ 12,175¥ 12,392$ 111,640

Expenses

provision included in the costs of revenues from operations are

Thousands of
U.S. dollars

Millions of yen
Personnel expenses

8.2

shown below.
Millions of yen

10,691

8,002

72,090

Taxes

948

904

8,144

Retirement benefit expenses

Depreciation andamortization

796

865

7,793

Provision for bonuses

Amortization of goodwill

2,426

2,508

22,595

Total

27,03924,674222,288

Thousands of
U.S. dollars

2020

2021

2021

¥ 6,377¥ 7,220$ 65,045

4,171

4,229

38,099

8.3
COVID-19-related losses include fixed costs incurred during the period of business suspension and costs directly required for preparation and cancellation of
events under the state of emergency issued by the government and in response to stay-at-home requests from local governments. Such costs were recorded under
extraordinary loss.

8.4

Structural reform-related loss

Fiscal year ended March 31, 2021
In recent years, Hankyu Hanshin Hotels Co., Ltd., a consolidated subsidiary of the Company, has been in a severe business environment, especially in the Kinki region,
where competition between hotels has intensified. Under such circumstances, greatly affected by the COVID-19 pandemic, some of its hotels were closed during
the state of emergency that was issued twice. The occupancy rate of the guest rooms and the use of the general banquet facilities plummeted throughout theperiod. The use of restaurants, etc., was also sluggish. Furthermore, going forward, it seems that it will take a considerable amount of time for profits to recover.
For these reasons, the Group has decided to move ahead with drastic structural reforms, including reforms for all aspects of “business,” “personnel” and “finance,”
to establish a firmer business structure. Consequently, impairment loss (9,676 million yen) and a provision of allowance for loss on withdrawal of property andequipment (6,786 million yen) were recorded under structural reform-related loss of extraordinary loss.
Millions of yen
Use
Hotel business assets (14)Type
Buildings and structures, etc.

Thousands of
U.S. dollars

RegionAmountAmountOsaka, Hyogo, Tokyo, etc.

¥ 9,676$ 87,1718.4.1 Method of asset grouping
Our Group includes each business or property as group assets for account management purposes.
8.4.2 Background to recognizing impairment loss
Amid the COVID-19 pandemic and due to other factors, some hotels continued to have operating loss. It was determined that other hotels had indications of
impairment due to a significant deterioration in the business environment, and decisions were made as to whether it was necessary to recognize impairment losses.
As a result, the book value of hotels for which an impairment loss needs to be recognized was reduced to the recoverable amount (9,676 million yen).
8.4.3 Breakdown of loss on impairment

Buildings and structures

Millions of yen

Thousands of
U.S. dollars¥ 4,614$ 41,568

Land, etc.

1,700

15,315

Other

3,361

30,279

Total

9,676

87,171

8.4.4 Method used to calculate recoverable value
The recoverable value is based on value in use or net realizable value.
Value in use was calculated by discounting future cash flows by 4.0%. For net realizable value, the memorandum value, etc., is used.

91

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

9.

Consolidated Statements of Comprehensive Income Reclassification adjustments and tax effects related to other comprehensive income
Millions of yen

Thousands of U.S. dollars
2021

2020

2021

Valuation difference on available-for-sale securities:
Increase (decrease) during the year¥

(8,550)

¥

5,881

$

52,982

1,268

(34)

(306)

Subtotal, before tax(7,282)

5,846

52,667Tax (expense) or benefit

2,159(1,695)(15,270)

Valuation difference on available-for-sale securities(5,122)

4,150

37,387

Increase (decrease) during the year

328

49

441

Reclassification adjustments

151

—

—

Subtotal, before tax

480

49

441

Tax (expense) or benefit

(165)

(17)

(153)

Deferred gains or losses on hedges

314

32

288

ProfileReclassification adjustments

Deferred gains or losses on hedges:

Messages fromthe Top Management

Revaluation reserve for land:
Increase (decrease) during the year

—

—

—

Reclassification adjustments

—

—

—

Subtotal, before tax

—

—

—

Tax (expense) or benefit

—

(41)

(369)

Revaluation reserve for land

—

(41)

(369)

(45)

(386)

(3,477)

0

—

—

(45)

(386)

(3,477)

Foreign currency translation adjustments:
Increase (decrease) during the year
Subtotal, before tax
Tax (expense) or benefit

—

—

—

Foreign currency translation adjustments

(45)

(386)

(3,477)（2,769）5,591

50,369

（819）

123

1,108

（3,588）5,714

51,477Creating Real Value:
Our Story

Reclassification adjustments

Remeasurements of defined benefit plans:
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit

1,186(1,809)(16,297)（2,401）

3,904

35,171(5,375)

4,009

36,117

11

62

559

(5,364)

4,071

36,676(12,618)

11,732

105,694

Creating Real Value:
The Processes

Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted for using
equity method:
Increase (decrease) during the year
Reclassification adjustments
Share of other comprehensive income of associates accounted forusing equity method
Total other comprehensive income

Creating Real Value:
The Foundations
Financial Section andCorporate Data

Hankyu Hanshin Holdings Integrated Report 2021

92

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

10. Consolidated Statements of Changes in Net Assets 
Fiscal year ended March 31, 2020

10.1

Matters concerning types and total number of outstanding shares, and types and number of outstanding shares of treasury stock(Thousands of shares)
Number of shares as of April 1, 2019

Increase in number of shares

Decrease in number of shares

Number of shares as of March 31, 2020

254,281——254,281254,281——254,281

9,541

2,529

34

12,036

9,541

2,529

34

12,036

Number of shares issued:
Common stock
Total
Treasury stock, at cost:
Common stock (Notes 1, 2 and 3)
Total
Notes:
1.	The number of shares of treasury stock at the end of the fiscal year ended March 31, 2020 included 367,308 shares in the Company owned by the officer’s
compensation BIP trust.
(Overview of reasons for fluctuations)
2.	The increase of 2,529 thousand shares of treasury stock of common stock consisted of 2,489 thousand shares acquired upon the resolution of the Board of
Directors’ meeting, 23 thousand shares acquired by the officer’s compensation BIP trust and 16 thousand shares created by the purchase of odd-lot shares.
3.	The decrease of 34 thousand shares of treasury stock of common stock consisted of 33 thousand shares delivered by the officer's compensation BIP trust,
0 thousand shares due to the sale of odd-lot shares and 0 thousand shares due to a change in the equity ratio against affiliates to which the equity method
is applicable.

10.2

Items concerning stock acquisition rights

There is no relevant item.

10.3

Items related to dividends

10.3.1Dividends paid
Dividends paid

Dividend per share(Millions of yen)

(Yen)

(Resolution)

Type of shares

June 13, 2019
Annual General Meetingof Shareholders

Common stock¥ 4,925

November 1, 2019
Board of Directors

Common stock

6,094

Record date

Effective date

¥ 20

March 31, 2019

June 14, 201925

September 30, 2019

December 2, 2019

Notes:
1.	The dividends by a resolution at the annual General Meeting of Shareholders on June 13, 2019 included 7 million yen of dividends for the shares in the
Company owned by the officer’s compensation BIP trust.
2.	The dividends by a resolution of the Board of Directors on November 1, 2019 included 9 million yen of dividends for the shares in the Company owned by theofficer’s compensation BIP trust.
10.3.2

Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
(Resolution)

Type ofsharesJune 17, 2020
Annual General Meetingof Shareholders

Commonstock

Dividends paid
(Millions of yen)
¥ 6,094

Source ofdividends
Retainedearnings

Dividend per share
(Yen)
¥ 25

Record date

Effective date

March 31, 2020

June 18, 2020

Note: The total amount of dividends includes 9 million yen of dividends for the shares in the Company owned by the officer’s compensation BIP trust.

93

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

Fiscal year ended March 31, 2021

10.4

Matters concerning types and total number of outstanding shares, and types and number of outstanding shares of treasury stock(Thousands of shares)
Number of shares as of April 1, 2020

Increase in number of shares

Decrease in number of shares

Number of shares as of March 31, 2021

254,281——254,281254,281——254,281

12,0361,337

45

13,327

12,0361,337

45

13,327

Number of shares issued:
Common stock

ProfileTotal
Treasury stock, at cost:
Common stock (Notes 1, 2 and 3)
Total
Notes:

1.	The number of shares of treasury stock at the end of the fiscal year ended March 31, 2021 included 408,268 shares in the Company owned by the officer’s
compensation BIP trust.
Messages fromthe Top Management(Overview of reasons for fluctuations)
2.	The increase of 1,337 thousand shares of treasury stock of common stock consisted of 1,235 thousand shares acquired upon the resolution of the Board of
Directors’ meeting, 86 thousand shares acquired by the officer’s compensation BIP trust, 12 thousand shares created by the purchase of odd-lot shares and 2
thousand shares due to a change in the equity ratio against affiliates to which the equity method is applicable.
3	The decrease of 45 thousand shares of treasury stock of common stock consisted of 45 thousand shares delivered by the officer's compensation BIP trust (theCompany’s shares) and 0 thousand shares due to the sale of odd-lot shares.

10.5

Items concerning stock acquisition rights

10.6

Items related to dividends

10.6.1Dividends paid
Type of shares

June 17, 2020
Annual General Meetingof Shareholders
November 6, 2020
Board of Directors

Dividends paid

Dividend per share

Record date

Effective date

$ 0.23

March 31, 2020

June 18, 2020

0.23

September 30, 2020

December 1, 2020

(Millions of yen)(Thousands of
U.S. dollars)(Yen)(U.S. dollars)Common stock¥ 6,094$ 54,901¥ 25

Common stock

6,094

54,90125

Creating Real Value:
The Processes(Resolution)

Creating Real Value:
Our Story

There is no relevant item.

Notes:
1.	The dividends by a resolution at the annual General Meeting of Shareholders on June 17, 2020 included 9 million yen of dividends for the shares in the
Company owned by the officer’s compensation BIP trust.
2.	The dividends by a resolution of the Board of Directors on November 6, 2020 included 8 million yen of dividends for the shares in the Company owned by theofficer’s compensation BIP trust.

Creating Real Value:
The Foundations

10.6.2

Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
(Resolution)

Type ofsharesJune 16, 2021
Annual General Meetingof Shareholders

Commonstock

Dividends paid
(Millions of yen)(Thousands of
U.S. dollars)¥ 6,063$ 54,622

Source ofdividends
Retainedearnings

Dividend per share(Yen)(U.S. dollars)¥ 25$ 0.23

Record date

Effective date

March 31, 2021

June 17,2021

Note: The total amount of dividends includes 10 million yen of dividends for the shares in the Company owned by the officer’s compensation BIP trust.

Financial Section andCorporate Data

Hankyu Hanshin Holdings Integrated Report 2021

94

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

11. Consolidated Statements of Cash Flows 
11.1

Relationship between cash and cash equivalents at fiscal year-end and amounts shown on consolidated balance sheets
Thousands of
U.S. dollars

Millions of yen
Cash and deposits in the consolidated balance sheets

2020

2021

2021

¥ 25,023¥ 27,546$ 248,162

Deposits with maturities over 3 months(1,497)(2,323)(20,928)

Cash and cash equivalents in the cash flow statements

23,52625,222

227,225

11.2
Depreciation and amortization for the fiscal year under review include depreciation costs recorded as COVID-19-related losses under extraordinary loss.

12. Lease Transactions <As lessee><As lessor>

Future lease payments for noncancelable leases in connection with operating

Future lease receivables for noncancelable leases in connection withlease transactions

operating lease transactions
Millions of yen

Thousands of
U.S. dollars

Millions of yen

2020

2021

2021

Due within one year

¥ 7,583¥ 7,027$ 63,306

Due within one year

Due after one year

63,91358,155523,919

Total

71,496

65,183587,234

Thousands of
U.S. dollars

2020

2021

2021

2,721

¥ 2,818$ 25,387

Due after one year

20,35020,159181,613

Total

23,071

22,978207,009¥

13. Financial Instruments 
13.1

Matters regarding financial instruments(market risk), which is limited by fixing interest rates through interest

13.1.1

Policy on financial instruments

rate swap transactions. In addition, liquidity risk—the risk that payment

It is the Group’s policy to limit the investment of its funds to short-term

will not be made by the due date—is limited by the timely preparation

deposits which are highly secure, and the Group raises funds mainlyof financing plans and proper fund management. Also, surplus funds ofthrough loans from financial institutions, bonds and commercial paper.

the Group companies are concentrated and used effectively through the

Derivative transactions are used to avoid risk, as discussed later, and it iscentralization of Group funds by using a cash management system. The

our policy to refrain from speculative transactions.

immediate raising of funds from financial institutions became possible
through the establishment of backup financing, such as commitment lines.

13.1.2

Details of the financial instruments used, the risk involved and theIn addition, the Company maintains a proper balance between direct

risk management systemfinancing and indirect financing and diversifies the raising of funds by using

Trade receivables, namely note receivables and trade account receivables,

Regarding the use of derivative transactions, internal regulations

to this credit risk by controlling due dates and balances by customer andprescribe the division of duties and transaction limits. Forward exchange

by making periodical checks of the credit conditions of major customers

contracts are used to hedge exchange rate fluctuation risk involved in a

pursuant to the internal regulations of each company.

portion of the foreign currency-denominated assets and liabilities. The

Investment securities consist mainly of stocks and bonds and are

purpose of interest rate swap transactions is to hedge the interest rate

exposed to market price fluctuation risk. However, fair values and thefluctuation risk of certain loans. These derivative transactions involve credit

financial condition of the issuers are checked periodically, and the risk

risk because if the other party to a transaction defaults under the terms

management system is confirmed.

of contract or becomes bankrupt, then the benefit that would have been

Almost all trade payables, namely note payables and trade accountobtained in the future if the transaction had continued will not be received.

payables, have a payment date that falls within one year. Some assets andHowever, credit risk is limited by carrying out transactions only withliabilities denominated in foreign currencies are exposed to exchange ratefinancial institutions with high credit ratings.

fluctuation risk (market risk), which is limited through forward exchange
contracts.

95

multiple financial institutions, thus securing liquidity.

are exposed to the credit risk of customers. The Group limits its exposure

More information regarding the means and objectives of hedging,hedging policy and the method used to evaluate the effectiveness of hedges

Short-term borrowings and commercial paper are used mainly to raise

related to hedge accounting for derivative transactions is described in Noteshort-term funds for working capital, and long-term debt and bonds are

2.4, “Accounting policies,” and Note 2.4.6, “Significant hedge accounting

used mainly to raise the long-term funds necessary for capital investment

methods,” outlined in Note 2, “Basis of Preparation of Consolidated Financial

plans. Some floating-rate debt is exposed to interest rate fluctuation risk

Statements.”

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

13.2

Matters regarding fair values of financial instruments

Book values recorded in the consolidated balance sheet, fair values and differences between them are as shown below.
Millions of yen

Thousands of U.S. dollars
2021

2020

2021

Book value

Fair value

DifferenceBook value

Fair value

DifferenceBook value

Fair value

Difference(1) Cash and deposits¥ 25,023¥ 25,023¥—¥ 27,546¥ 27,546¥—$ 248,162(2) Trade receivables

68,36668,366—72,991

72,991—

657,577

657,577—(3) Investment securities

33,64733,647(0)63,954

63,954(0)576,162

576,162(0)Assets$248,162$—
ProfileLiabilities
29,50829,508—29,13829,138—262,505

262,505—

123,710

123,710—106,263

106,263—

957,324

957,324

—

—

—

—

30,00030,000—270,270

270,270—(7) Bonds*2

122,000

123,633

1,633

197,000

197,414414

1,774,775

1,778,505

3,730(8) Long-term debt*1

649,755

665,220

15,464

718,358

735,100

16,741

6,471,694

6,622,523

150,820

(205)

(205)

—

58

58

—

523

523

—

(6) Commercial paper(9) Derivative transactions*3

Messages fromthe Top Management(4) Trade payables(5) Short-term borrowings*1*1 Current portion of long-term debt is included in (8) Long-term debt.
*2 Current portion of bonds is included.
*3 The net receivables/liabilities incurred as a result of derivative transactions are shown in net figures, net liabilities are shown in parenthesis.
Notes:
1. Methods used to calculate the fair values of financial instruments and matters regarding securities and derivative transactions(1) Cash and deposits and (2) Trade receivablesThe fair values of these are almost equal to their book values because they will be settled within a short period of time. As a result, their fair values are based on

Creating Real Value:
Our Story

their book values.
(3) Investment securities
The fair values of investment securities are based on prices quoted by stock exchanges, and the fair values of bonds are based on prices quoted by stock
exchanges or prices presented by trading financial institutions. Securities categorized by the purpose for which they are held are described in Note 14, “Securities.”(4) Trade payables, (5) Short-term borrowings and (6) Commercial paper
The fair values of these are almost equal to their book values because they will be settled within a short period of time. As a result, their fair values are based on
their book values.
(7) Bonds
The fair values of bonds are based on market prices.
(8) Long-term debt

Creating Real Value:
The Processes

The fair value of fixed-rate long-term debt is based on a method of calculation in which the total principal and interest is discounted at an interest rate that isassumed for the introduction of similar new debt. The fair value of floating-rate long-term debt is based on the book value because the fair value of floating-ratelong-term debt reflects market interest rates within a short period of time and closely approximates the book values.
(9) Derivative transactionsPlease see Note 15, “Derivatives.”
2. The book value of financial instruments whose fair value is extremely difficult to ascertain
Thousands of
U.S. dollars

Millions of yen
Classification
Investments in limited liability investment partnerships and similar investments

2020

2021

2021

¥ 6,523¥ 6,520$ 58,739

5,136

5,399

48,640Creating Real Value:
The Foundations

Non-listed equity securities and bonds

It is extremely difficult to ascertain the fair value of these financial instruments because market prices are not available and future cash flows cannot be estimated.
As a result, they are not included in (3) Investment securities.

3. The securities of nonconsolidated subsidiaries and affiliated companies are not included in (3) Investment securities.
4. Supplementary explanation regarding fair value of financial instruments

Financial Section andCorporate Data

The fair values of financial instruments are generally based on market prices. If market prices are not available, the fair values of financial instruments are reasonably
calculated. In such calculations, certain assumptions may be used. As a result, if different assumptions are used, the values may differ. For derivative contracts, theamount of the contract which is indicated in Note 15, “Derivatives” does not indicate the market risk involved in derivative transactions themselves.

Hankyu Hanshin Holdings Integrated Report 2021

96

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

5. Redemption and repayment schedule of monetary claims and investment securities with maturities after the consolidated closing dateFiscal year ended March 31, 2020
Millions of yen
Due after one
Due within one
year through five
year
years
Cash and deposits¥ 25,023

Trade receivables

68,366¥——59
93,449Due after five
years throughten years¥—

Due after ten
years
¥

—

—

—

223

10

300

223

10

300

Investment securities:
Available-for-sale securities with maturities(government bonds, etc.)
Total

Fiscal year ended March 31, 2021
Millions of yen
Due after one
Due within one
year through five
year
years
Cash and deposits¥ 27,546

Trade receivables

72,991¥——

70
100,608

Thousands of U.S. dollars

Due after five
years throughten years¥—

Due after ten
years¥

Due after one
Due within one
year through five
year
years
$

—

Due after five
years throughten years$—

Due after ten
years

—

$ 248,162——

657,577

—

160

—

300

631

1,441

—

2,703

160

—

300

906,378

1,441

—

2,703

—

$

—
—

Investment securities:
Available-for-sale securities with maturities(government bonds, etc.)
Total

6. Amount of planned redemption and repayment of bonds and long-term debt after the consolidated closing dateFiscal year ended March 31, 2020
Millions of yen
Due after one
Due within one
year through five
year
years
Bonds
Long-term debt
Total

Due after five
years throughten years

Due after ten
years¥ 25,000¥ 27,000¥ 30,000¥ 40,000

34,696

264,556

249,770

100,732

59,696

291,556

279,770

140,732

Fiscal year ended March 31, 2021
Millions of yen
Due after one
Due within one
year through five
year
years
Bonds
Long-term debt
Total

97

Hankyu Hanshin Holdings Integrated Report 2021

Thousands of U.S. dollars

Due after five
years throughten years

Due after ten
years

Due after one
Due within one
year through five
year
years

Due after five
years throughten years

Due after ten
years$ 540,541¥ 10,000¥ 67,000¥ 60,000¥ 60,000$ 90,090$ 603,604$ 540,541

44,971

297,864

278,625

96,898405,1442,683,459

2,510,135

872,955

54,971

364,864

338,625

156,898495,234

3,287,063

3,050,676

1,413,495

Notes to the Consolidated Financial Statements

14. Securities 
14.1

Available-for-sale securities
Millions of yen

Classification

Securities withbook value
not exceedingacquisition cost(1) Equity securities,etc.
(2) Bonds

2021

2021

Book value

Acquisition
cost

DifferenceBook value

Acquisition
cost

DifferenceBook value

Acquisition
cost

Difference¥ 26,407¥ 18,373¥ 8,034¥ 61,918¥ 41,268¥ 20,649$ 557,820$ 371,784$ 186,027

287

5

231

228

2

2,081

2,054

18

26,69918,6608,039

62,14941,497

20,652559,901

373,847

186,054

Equity securities,
etc.

6,937

7,985

(1,048)

1,795

1,886

(91)

16,171

16,991

(820)

6,937

7,985

(1,048)

1,795

1,886

(91)

16,171

16,991(820)

33,637

26,646

6,990

63,944

43,383

20,561

576,072

390,838

185,234

Subtotal

Total

Messages fromthe Top Management292

Subtotal

ProfileSecurities withbook value
exceedingacquisition costThousands of U.S. dollars

2020

Note: Unlisted equity securities and others (fiscal year ended March 31, 2020: 11,659 million yen, fiscal year ended March 31, 2021: 11,920 million yen) are notincluded in the above table because it was extremely difficult to determine their market values as there were no market prices and their future cash flows
cannot be reasonably estimated.

14.2

Securities for which impairment loss has been recorded

Fiscal year ended March 31, 2020
Impairment loss of 1,356 million yen was recorded for investment securities (shares in available-for-sale securities).
Creating Real Value:
Our Story

Fiscal year ended March 31, 2021
Information is omitted as the significance was negligible.

Creating Real Value:
The Processes
Creating Real Value:
The Foundations
Financial Section andCorporate Data

Hankyu Hanshin Holdings Integrated Report 2021

98

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

15. Derivatives 
15.1

Derivative transactions for which hedge accounting has not been applied

Currency
Fiscal year ended March 31, 2020
Millions of yen
Contract
amountClassification

Type

Portion ofcontract
amountexceeding
one year

Fair value(Note)

Valuation
gain/loss¥ —¥ (53)¥ (53)

Currency swap contracts:
Receive yen, pay US dollar¥

598

Forward exchange contracts:
Buy contractTransactions
other than market
transactions

Euro

10,245

—

（128）

（128）

US dollar

4,124

—

66

66

Swiss franc

1,052

—

28

28

Canadian dollar

891

—

（52）

（52）

Singapore dollar

448

—

（14）

（14）

Australian dollar

344

—

（38）

（38）

New Zealand dollar

79

—

（5）

（5）

South African rand

46

—

（6）

（6）

17,831

—

(204)

(204)

Contract
amountPortion ofcontract
amountexceeding
one year

Fair value(Note)

Valuation
gain/loss

Contract
amountPortion ofcontract
amountexceeding
one year

Fair value(Note)

Valuation
gain/loss

¥ 169

¥ —

¥ 7

¥ 7

$ 1,523

$—

$ 63

$ 63

169

—

7

7

1,523

—

63

63

Total
Fiscal year ended March 31, 2021

Millions of yen

ClassificationTransactions
other than market
transactions

Type

Thousands of U.S. dollars

Forward exchange contracts:
Buy contract
US dollar
Total

Notes:
1. Fair value is based mainly on prices quoted from counterparty financial institutions.
2. Regarding the above currency swap contracts, in the nonconsolidated financial statements, hedge accounting is applied for monetary payables and receivables
related to transactions between consolidated subsidiaries. In the consolidated financial statements, however, hedge accounting is not applied because thehedged items are eliminated.

99

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

15.2

Derivative transactions for which hedge accounting has been applied

15.2.1

Currency

Fiscal year ended March 31, 2020

Millions of yen

Classification

Portion of contract
amount exceeding
one yearType

Main hedged
items

Contract
amountFair value(Note)

Forward exchange contracts
Sell contract

Trade receivables

US dollar
Buy contract

¥

16

¥

—

¥

0

ProfilePrimarymethodTrade payables

Japanese yen

500

—

(3)

Forward exchange contracts
Buy contract
US dollar

Trade payables(forecast transactions)Indian rupee

1,295

—

3

34

—

(1)

148

—

Sell contract

Trade receivables

US dollarDesignationof forward
exchange
contracts,etc.

Buy contract

Messages fromthe Top Management

Forward exchange contracts

Trade payables

US dollar

—

568

—

Hong Kong dollar

164—

Thai baht

67—

Australian dollar

36—

New Zealand dollar

29—

Singapore dollar

24—

Pound sterling

21—

Canadian dollar

12—South African rand

7

—

2

—

3,994

—

Swiss franc
Total
Fiscal year ended March 31, 2021

(Note 2)Creating Real Value:
Our Story

1,064

Euro

(0)

Millions of yen

Thousands of U.S. dollars
Portion of contract
amount exceeding
one yearContract
amount

¥

0

$

—

(0)

10,171

—

（0）

745

—

52

6,712

—

468

22

—

(0)

198

—

（0）

178

—

US dollar

733—

Thai baht

192—

Hong Kong dollar

134

—

Euro

105

—

946

—

Pound sterling

35

—

315

—

Singapore dollar

14

—

126

—

Swiss franc

1

—

9

—

3,298

—

29,712—Type

Main hedged
items

Creating Real Value:
The Processes

Portion of contract
amount exceeding
one year

Fair value(Note)Classification

Contract
amountFair value(Note)

Forward exchange contracts
PrimarymethodSell contract

Trade receivables

US dollar
Buy contract

¥

5

¥

—

45

$

—

$

0

Trade payables

Japanese yen

1,129

Forward exchange contracts
Buy contract

Trade payables(forecast transactions)Indian rupee

Creating Real Value:
The Foundations

US dollar
Forward exchange contracts
Designationof forward
exchange
contracts,
etc.

Sell contract

Trade receivables

US dollar
Buy contract

6,604(Note 2)

51

—

1,730

—

1,207

—

(Note 2)Financial Section andCorporate Data

Total

1,604

Trade payables

459

Notes:
1. Fair value is based mainly on prices quoted from counterparty financial institutions.
2. Designation of forward exchange contracts, etc., are treated together with trade receivables and trade payables that are subject to hedging; therefore, theirmarket values are recorded together with those of trade receivables and trade payables.

Hankyu Hanshin Holdings Integrated Report 2021

100

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

15.2.2

Interest rates

Fiscal year ended March 31, 2020
Millions of yen
ClassificationExceptional
accounting ofinterest rate
swaps

Main hedged
items

Type
Interest rate swap contracts:
Pay fixed rate/
Receive floating rateLong-term debt

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)¥ 151,897¥ 147,300¥ (8,914)

151,897

147,300(8,914)Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)¥ 144,000¥ 124,700¥ (7,116)$ 1,297,297$ 1,123,423$ (64,108)

144,000

124,700(7,116)

1,297,297

1,123,423(64,108)

Total
Fiscal year ended March 31, 2021

ClassificationExceptional
accounting ofinterest rateswaps

Millions of yen
Main hedged
items

Type
Interest rate swap contracts:
Pay fixed rate/
Receive floating rateLong-term debt

Total

Thousands of U.S. dollars

Note: Fair value is based mainly on prices quoted from counterparty financial institutions.

16. Retirement Benefits 
16.1

Overview of retirement benefit plans

The Company and some consolidated subsidiaries provide defined benefit plans (defined benefit pension plans and lump-sum payment plans) or defined
contribution plans. Hankyu Corporation has set up a retirement benefit trust.
In addition, some consolidated subsidiaries subscribe to employee pension fund plans in multi-employer plans. For them, the Company has used the sameaccounting treatment as it used for defined contribution plans when the amount of plan assets corresponding to the contributions by the Company cannot be
rationally calculated.

16.2

Defined benefit plan

16.2.1

Table of movement in retirement benefit obligations

16.2.2Millions of yen
2020

2021

2021

¥ 133,751¥ 132,022$ 1,189,387

Service cost

7,933

8,061

72,622

Interest cost

254

254

2,288

Actuarial loss (gain)

53

679

6,117

Retirement benefits paid

(9,562)(9,134)(82,288)

Decrease resulting fromthe end of the retirement
benefit plan system

(443)

—

—

36

173

1,559

132,022132,057

1,189,703

Balance at beginningof the year

Other
Balance at end of the year

Table of movement in plan assets

Thousands of
U.S. dollars

Note: Amounts in the table above include the retirement benefit obligationsof consolidated subsidiaries using simplified methods.

Balance at beginningof the yearExpected returnon plan assets

2020

2021

2021

¥ 86,137¥ 82,638$ 744,486
12,000

1,087

1,332

Actuarial loss (gain)（2,715）

6,270

56,486Contribution paidby the employer

4,001

4,080

36,757Retirement benefits paid

(5,145)(4,968)(44,757)

Decrease resulting fromthe end of the retirement
benefit plan system

(737)

—

—

Other
Balance at end of the year

10

—

—

82,63889,352804,973

Note: Amounts in the table above include the plan assets of consolidated
subsidiaries using simplified methods.

101

Hankyu Hanshin Holdings Integrated Report 2021

Thousands of
U.S. dollars

Millions of yen

Notes to the Consolidated Financial Statements

16.2.3

Table of reconciliation between the balance of retirement benefit

16.2.6

obligations and of plan assets, and the liabilities for retirement

A breakdown of items related to the cumulative adjustments for retirement

Cumulative adjustments for retirement benefit plans

benefit and assets for retirement benefit recorded in thebenefit plans (prior to the deduction of the tax effect) is as follows:

consolidated balance sheet, as of the end of fiscal year
Millions of yen

2021¥ 70,521¥ 69,796$ 628,793(82,638)(89,352)(804,973)(12,116)(19,556)(176,180)Unfunded retirement benefit
obligations

61,50062,260560,901Total net defined benefit
liability and asset

49,38342,704

384,721

Net defined benefit liability

63,02062,890566,577

Net defined benefit asset(13,636)(20,186)(181,856)Total net defined benefit
liability and asset

49,38342,704

384,721Funded retirement benefit
obligations
Plan assets

Note: Amounts in the table above include the retirement benefit obligations

Unrecognized past service
costUnrecognized actuarial
differences

Breakdown of retirement benefit expenses

Service cost
Interest costExpected return on plan
assetsAmortization of actuarial
differences
Amortization of past service
cost
Other

2020

2021

2021

¥ 7,933¥ 8,061$ 72,622

254

254

2,288

(1,087)(1,332)(12,000)

(680)

263

2,369

(138)

(139)

(1,252)

72

649

6,329

7,179

64,676

Loss resulting from the endof the retirement benefit
plan system

293

—

—

6,623

7,179

64,676

Total
Notes:¥ (903)¥ (763)$ (6,874)(84)(5,938)(53,495)(987)(6,702)(60,378)

Note: The above relates to consolidated subsidiaries. In addition to theabove items, the remeasurements of defined benefit plans include
unrecognized items (the amount corresponding to equity) of equitymethod affiliates.

16.2.7I.

Items relating to plan assets

Breakdown of major plan assets
Ratio of the major types of assets to total assets are as follows:
2020

2021

Bonds

37%

35%

Equity securities

31

36

Cash and deposits

22General accounts of life insurance

28

25

Other

2

2

Total

100

100

Note: The retirement benefits trust established for the Company’s pension
plan constituted 12% of total plan assets in the previous fiscal year and
11% of total plan assets in the current fiscal year.

II.

Method of determining the long-term expected rate of return on plan

Creating Real Value:
The Processes

49

Retirement benefit expenses

2021

Creating Real Value:
Our Story

Thousands of
U.S. dollars

Millions of yen

2021

Total

and plan assets of consolidated subsidiaries using simplified methods.

16.2.42020

Messages fromthe Top Management

2021

Profile2020

Thousands of
U.S. dollars

Millions of yen

Thousands of
U.S. dollars

assetsCurrent and target asset allocations and historical and expected returns
on various categories of plan assets have been considered in determining
the long-term expected rate of return on plan assets.

1. Amounts in the table above include the retirement benefit expenses of
consolidated subsidiaries using simplified methods.
2. In addition to the retirement benefit expenses shown above, extra
revenues from operations and extraordinary loss in the fiscal year ended
March 31, 2020, and 161 million yen as extraordinary loss in the fiscal year
ended March 31, 2021.
3. Loss resulting from the end of the retirement benefit plan system isincluded in the “Other” section in extraordinary loss.

16.2.5	Remeasurements of defined benefit plans
to the deduction of the tax effect) is as follows:

2020

2021

Discount rate

Mainly 0.0%

Mainly 0.0%

Long-term expected rate of return onplan assets

Mainly 2.0%

Mainly 2.0%

Expected rate of salary increase

Mainly 2.0%

Mainly 2.1%

16.3

Defined contribution plan

The amount of the required contribution for the consolidated subsidiaries’

Financial Section andCorporate Data

Breakdown of items related to remeasurements of defined benefit plans (prior

Items relating to actuarial assumptions

Creating Real Value:
The Foundations

retirement payments have been paid; 30 million yen recorded as costs of

16.2.8Major actuarial assumptions

defined contribution plans (including employee pension fund plans in multi-

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

Past service cost

¥ （138）¥ (139)$ (1,252)

Actuarial differences（3,450）5,854

52,739Total（3,588）5,714

51,477

employer plans to which the same accounting methods are applied as fordefined contribution plans) was 43 million yen in the fiscal year ended March
31, 2020 and 41 million yen in the fiscal year ended March 31, 2021.

Hankyu Hanshin Holdings Integrated Report 2021

102

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

17. Deferred Tax 
17.1

Significant components of the Company’s deferred tax assets and liabilities
Thousands of U.S.
dollars

Millions of yen
2020

2021

2021

Deferred tax assets:
Gain on donations by related companies for tax purposes¥ 55,122¥ 55,122

Tax loss carryforwards (Note 1)

5,736

33,084

298,054

Net defined benefit liability

15,891

13,952

125,694

Loss on impairment of fixed assets

12,784

9,999

90,081

Loss on revaluation of real estate for sale

9,162

9,257

83,396

Loss on adjustment of transferred profit and loss

5,614

5,503

49,577

Unrealized profit from assets

5,302

5,106

46,00096

2,471

22,261

Provision for bonuses

1,648

1,580

14,234Enterprise taxes and business office taxes

1,519

416

3,748

Temporary differences related to investments in subsidiaries

11,021

—

—

Other

9,699

11,275

101,577
1,331,252

Allowance for loss on withdrawal of property and equipment

Subtotal of deferred tax assets$

496,595

133,598

147,769

Valuation allowance from tax loss carryforwards (Note 1)(2,546)(6,214)(55,982)

Valuation allowance from the total of future deductible temporary
differences(77,364)(78,012)(702,811)

Subtotal of valuation allowance(79,910)(84,227)(758,802)Less amounts offset against deferred tax liabilities(46,731)(56,749)(511,252)

6,956

6,792

61,189Total deferred tax assets
Deferred tax liabilities:
Gain on reversal of difference from land revaluation (Note 2)(130,478)(131,392)(1,183,712)

Revaluation of assets on consolidation(78,321)(77,963)(702,369)Net unrealized holding gains on securities(12,217)(16,537)(148,982)

Reserve for reduction of noncurrent assets(3,449)(3,398)(30,613)Gain on valuation of properties of business reorganization(1,745)(1,722)(15,514)

Other(2,110)(2,575)(23,198)(228,322)(233,589)(2,104,405)Subtotal of deferred tax liabilities
Less amounts offset against deferred tax assets

103

46,731

56,749511,252Total deferred tax liabilities(181,590)(176,839)(1,593,144)

Net deferred tax liabilities(174,634)(170,046)(1,531,946)

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

Notes:
1. The expiration of tax loss carryforwards, the related valuation allowance and the resulting net deferred tax assets

Fiscal year ended March 31, 2020
Millions of yen
Over two years
to three years

¥ 449

¥ 853

¥ 3,026

Valuation allowance

(443)

(848)

(181)

Deferred tax assets

5

5

2,845

Tax loss carryforwards*

1

Over three years
to four years¥

Over four years
to five years

Over five years

Total

79

¥ 1,237¥ 5,736

(77)

(45)

(950)

(2,546)

11

34

287

3,189*

88¥

ProfileWithin one year

Over one year
to two years

2*1 Tax loss carryforwards were calculated based on the statutory tax rate.
 f the total tax loss carryforwards of 5,736 million yen (multiplied by the statutory effective tax rate), 3,189 million yen were deferred tax assets. This 3,189*2 O
million yen of deferred tax assets comprised mainly 2,520 million yen of deferred tax assets of Hankyu Corporation, which is a member of the consolidated tax
group to which the Company is the consolidated parent corporation. The deferred tax assets were made when for tax purposes a valuation loss on properties
Messages fromthe Top Management

for sale was recorded at Hankyu Corporation in the fiscal year ended March 31, 2014. Of the deferred tax assets, the losses carried for tax purposes have been
determined to be recoverable from taxable income we expect in the future.
Fiscal year ended March 31, 2021
Millions of yen
Within one year

Over one year
to two years

Over two years
to three years

Over three years
to four years

Over four years
to five years

Over five years

Total

¥ 691

¥ 2,954

¥ 123

¥ 63

¥ 332

¥ 28,918¥ 33,084

Tax loss carryforwards*

1

Valuation allowance

(686)

(582)

(114)

(10)

(189)

(4,632)(6,214)

Deferred tax assets

5

2,372

9

52

143

24,285

26,869*²
Creating Real Value:
Our Story

Thousands of U.S. dollars
Within one year

Over two years
to three years

Over three years
to four years

Over four years
to five years

Over five years

Total

Tax loss carryforwards*

Over one year
to two years$ 6,225$ 26,613$ 1,108$ 568$ 2,991$ 260,523$ 298,054

Valuation allowance(6,180)(5,243)(1,027)(90)(1,703)(41,730)(55,982)

Deferred tax assets

45

21,369

81

468

1,288

218,784

242,063*²

1*1 Tax loss carryforwards were calculated based on the statutory tax rate.
 f the total tax loss carryforwards of 33,084 million yen (multiplied by the statutory effective tax rate), 26,869 million yen were deferred tax assets. The deferred*2 O
Creating Real Value:
The Processes

tax assets were determined to be recoverable from the taxable income expected in the future as set forth in the Note 3, “Significant Accounting Estimates.”

2. The Company reversed “Surplus from land revaluation” when, as a result of a (physical) absorption-type corporate split on April 1, 2005, it handed over all of its
land to Hankyu Corporation (which changed its name from Hankyu Corporation Spin-Off Preparation Inc. to Hankyu Corporation on the same day). As a result,“Deferred tax liabilities related to land revaluation” has been recorded as “Deferred tax liabilities” starting from the fiscal year ended March 31, 2006.

17.2	Reconciliation of significant differences between the statutory tax rate and the effective tax rate reflected in the accompanying consolidated
statements of income
2020

2021

30.6%

—%

19.7

—

2.2

—

Creating Real Value:
The Foundations

Statutory tax rate
(Adjustment)
Elimination of dividends received fromconsolidated subsidiary companies, etc.
Difference in tax rates from those of Parent
Company

0.9—

Per capita portion of inhabitants tax

0.4—

Nondeductible expenses

0.4—

Valuation allowance

0.4—

Nontaxable income(19.3)—

Profit or loss from investments with equity
method affiliates

(1.2)

—

0.2

—

34.4

—

Other
Effective tax rate

Financial Section andCorporate Data

Amortization of goodwill

Note: The reconciliation for the consolidated fiscal year ended March 31, 2021 is omitted as a loss before income taxes was recorded.

Hankyu Hanshin Holdings Integrated Report 2021

104

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

18. Asset Retirement Obligations 
Omitted as the significance was negligible.

19. Rental Property 
Some consolidated subsidiaries own rental property, such as office buildings

Notes:and commercial facilities for lease in Kita Ward, Osaka and other areas.

1. Book value is acquisition cost less accumulated depreciation.

Rental profits and losses related to the rental property in the fiscal year

2. As for the increases/decreases during the fiscal year ended March 31, 2020,

ended March 31, 2020 were 32,663 million yen (major rental revenues

the main increases were the completion of buildings under construction

are recorded in revenues from operations and major rental expenses areof 13,940 million yen and acquisitions of real estate of 6,235 million yen,recorded in costs of revenues from operations). Rental profits and losses

and the main decrease was depreciation of 12,838 million yen. As for the

related to the rental property in the fiscal year ended March 31, 2021 wereincreases/decreases during the fiscal year ended March 31, 2021, the main

26,215 million yen (major rental revenues are recorded in revenues fromincrease was the completion of buildings under construction of 22,730

operations and major rental expenses are recorded in costs of revenues

million yen, and the main decrease was depreciation of 12,833 million yen.
3. Fair value as of the end of the fiscal year is the appraisal value accordingfrom operations).
Book value recorded in the consolidated balance sheet, the increase/to outside real estate appraisers based on Japanese Real Estate Appraisal

decrease during the fiscal year and the market value for rental property are asStandards in the case of key properties and the fair value based on indicators

follows:such as the assessed value of noncurrent assets and the road tax rating forMillions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥ 639,657¥ 645,922$ 5,819,117

Increase/decrease (Note 2)

6,265

7,185

64,730

Balance at end of the year

645,922

653,108

5,883,856

914,359

917,853

8,268,946

Book value (Note 1):Balance at beginningof the year

Fair value at endof the year (Note 3)other properties.
4. P roperties under development were not included in the above table because
it was difficult to determine the market value. Furthermore, properties underdevelopment recorded in the consolidated balance sheet for the fiscal year
ended March 31, 2020 and 2021 were 156,001 million yen and 171,670
million yen, respectively.

20. Segment Information 
20.1

Segment information

20.1.1

Summary of reportable segments

The Group’s reportable segments, which make financial information for units of the Group available, are regularly reviewed by the Board of Directors to determine theallocation of management resources and evaluate business results.
The Group, centering on six core companies of Hankyu Corporation, Hanshin Electric Railway Co., Ltd., Hankyu Hanshin Properties Corp., Hankyu Travel International
Co., Ltd., Hankyu Hanshin Express Co., Ltd. and Hankyu Hanshin Hotels Co., Ltd., under the leadership of the Company in charge of management of the Group, is runningbusiness centered around the seven business areas of urban transportation, real estate, entertainment, information and communication technology, travel, internationaltransportation and hotels.
The nature of the business in each reportable segment is as follows:
Urban Transportation: Railway operations, automobile and retailing businesses
Real Estate: Rental real estate, real estate sales and other businesses
Entertainment: Sports-related businesses and stage events
Information and Communication Technology: Information and communication technology businessTravel: Travel services
International Transportation: International cargo services
Hotels: Hotel ownership and management

20.1.2

Method used to calculate revenues from operations, income (or loss), assets and other items for each reportable segment

The accounting treatment for each reportable business segment is based on the methods described in Note 2, “Basis of Preparation of Consolidated Financial Statements,”
including Internal transactions (lease transactions for lands and buildings, etc.) that are calculated through management accounting at companies with businesses covering
multiple segments.
Income (or loss) for each reportable segment refers to a figure based on operating income (or loss).
Intersegment revenues from operations and transfers are mainly based on similar to that for regular transactions.

105

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

20.1.3

Information regarding totals for revenues from operations, income (loss), assets and other items by reportable segment

Fiscal year ended March 31, 2020
Millions of yen
Reportable segments
Urban
Transportation

Real
EstateInformation andEntertainment Communication
Technology

International
Transportation

TravelHotels

Other(Note 1)

Adjustment(Note 2)

Amounts
appearing in
the consolidated
financial statements(Note 3)

Revenues from operations:¥ 216,805¥ 72,593¥ 49,904¥ 33,762¥ 76,104¥ 59,136¥ 31,472

4,698

19,241

1,427

8,671

3

81

1,143

11,014¥(46,281)393¥

762,650—

Total

227,176

236,046

74,02058,57633,76676,18660,28042,486(45,887)

762,650

Segment income (loss)

40,056

41,51011,695

5,598

232

170

（3,142）

2,381(3,332)

95,170

Segment assets

816,195

1,178,160

107,608

55,65847,28648,42988,03038,040109,672

2,489,081

27,621

17,150

3,751

3,752

761

1,310

2,503

381

(691)

56,542

32,92832,212

4,161

4,865

1,244

1,111

4,814

198

(446)

81,090

Profile¥ 222,478

II. Intersegment

I. Customers

Other items:

Messages fromthe Top Management

Depreciation andamortizationIncrease in property andequipment and intangible assets

Notes：
1. The “Other” segment refers to a business segment not included in reportable segments and includes the construction business, etc.
2. The main item in the adjusted amount of the segment income or loss for the fiscal year was the amortization of goodwill of (2,238) million yen (amortization of
goodwill having originated mainly from the management integration with Hanshin Electric Railway Co., Ltd. in fiscal 2007).
In addition to the balance of unamortized goodwill of 13,987 million yen (goodwill having originated mainly from the management integration with Hanshin
Electric Railway Co., Ltd. in fiscal 2007), the adjusted amount for segment assets includes surplus working capital (cash and deposits), long-term investment funds(investment securities), unallocated assets such as land and intersegment eliminations at the Company, Hankyu Corporation and Hanshin Electric Railway Co., Ltd.
3. Segment profit and loss is adjusted with operating income in the consolidated statements of income.

Creating Real Value:
Our Story

Fiscal year ended March 31, 2021
Millions of yen
Reportable segments
Urban
Transportation

Real
EstateInformation andEntertainment Communication
Technology

International
Transportation

TravelHotels

Other(Note 1)

Adjustment(Note 2)

Amounts
appearing in
the consolidated
financial statements(Note 3)

Revenues from operations:¥ 173,240¥ 41,442¥ 49,838¥ 11,954¥ 85,468¥ 18,463¥ 35,734

4,570

15,119

749

8,245

6

84

682

14,106(43,563)—

Total

156,926

188,360

42,192

58,083

11,96085,552

19,14549,840(43,160)

568,900

I. Customers

Segment income (loss)
Segment assets¥

402¥ 568,900(5,108)28,923(2,258)5,556(7,397)

2,308(17,927)

1,881(3,911)

2,066

814,650

1,298,114

106,31058,74329,626

52,616

91,23039,985

129,750

2,621,028

27,052

17,302

2,942

4,246

886

1,288

2,369

456

(812)

55,73329,51568,762

1,716

4,544

1,352

687

1,922

329

(358)

108,472

Adjustment(Note 2)

Amounts
appearing in
the consolidated
financial statements(Note 3)$

$ 5,125,225

Creating Real Value:
The Processes¥ 152,355

II. Intersegment

Other items:
Depreciation andamortizationIncrease in property andequipment and intangible assets

Thousands of U.S. dollars
Reportable segments
Real
EstateTravelInternational
Transportation

Hotels

Other(Note 1)Creating Real Value:
The Foundations

Urban
Transportation

Information andEntertainment Communication
Technology

Revenues from operations:$ 1,372,568$ 1,560,721$ 373,351$ 448,991$ 107,694$ 769,982$ 166,333$ 321,928

II. Intersegment

41,171

136,207

6,748

74,279

54

757

6,144

127,081(392,459)

—

Total

1,413,748

1,696,937

380,108

523,270

107,748

770,739

172,477

449,009(388,829)

5,125,225

I. Customers

Segment income (loss)
Segment assets

3,622(46,018)

260,568(20,342)

50,054(66,640)

20,793(161,505)

16,946(35,234)

18,6137,339,189

11,694,721

957,748529,216

266,901

474,018

821,892

360,225

1,168,919

23,612,865

243,712

155,874

26,50538,252

7,982

11,604

21,342

4,108(7,315)502,099

265,901

619,477

15,45940,937

12,1806,189

17,3152,964(3,225)977,225

Other items:
Financial Section andCorporate Data

Depreciation andamortizationIncrease in property andequipment and intangible assets

Notes:
1. The “Other” segment refers to a business segment not included in reportable segments and includes the construction business, etc.
2. The main item in the adjusted amount of the segment income or loss for the fiscal year was the amortization of goodwill of (2,238) million yen (amortization of
goodwill having originated mainly from the management integration with Hanshin Electric Railway Co., Ltd. in fiscal 2007).
In addition to the balance of unamortized goodwill of 11,749 million yen (goodwill having originated mainly from the management integration with Hanshin
Electric Railway Co., Ltd. in fiscal 2007), the adjusted amount for segment assets includes surplus working capital (cash and deposits), long-term investment funds(investment securities), unallocated assets such as land and intersegment eliminations at the Company, Hankyu Corporation and Hanshin Electric Railway Co., Ltd.
3. Segment profit and loss is adjusted with operating income in the consolidated statements of income.

Hankyu Hanshin Holdings Integrated Report 2021

106

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

20.2

Related information

Fiscal years ended March 31, 2020 and 2021
20.2.1

Information by product and service

Information about product and service categories is the same as that described in Note 20.1.3, “Information regarding totals for revenues from operations, income(loss), assets and other items by reportable segment.”
20.2.2
I.

Information by region

Revenues from operations

Since over 90% of revenues from operations in the consolidated statements of income are revenues from external customers in Japan, a breakdown by region isomitted.
II.

Property and equipment

Since over 90% of the total value of property and equipment in the consolidated balance sheets relates to property and equipment in Japan, a breakdown by
region is omitted.
20.2.3

Information about important customers

No single external customer accounts for more than 10% of the revenues from operations reported in the consolidated statements of income.

20.3

Information regarding impairment loss on noncurrent assets for each reportable segment

Fiscal year ended March 31, 2020
Omitted as the significance was negligible.
Fiscal year ended March 31, 2021
In the “Hotels” segment, an impairment loss of 9,676 million yen was recorded as a structural reform-related loss under extraordinary loss.

20.4

Information regarding amortization of goodwill and the balance of unamortized goodwill by reportable segment

Information is omitted as the significance was negligible.

20.5

Information regarding gains from negative goodwill by reportable segment

Information is omitted as the significance was negligible.

107

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

21. Related-party transactions 
21.1

Related-party transactions

21.1.1

Transactions between the company submitting the consolidated financial statements and related parties

No items
21.1.2

Transactions between consolidated subsidiaries of the company submitting the consolidated financial statements and related parties

I.

Profile
Nonconsolidated subsidiary or related company of the company that submitted the financial statements

Fiscal year ended March 31, 2020
Type

Address

Hankyu Hanshin
Kita-ku, Osaka
Department
City
Stores, Inc.

Amountof capital(Millions of yen)

Business

Votinginterest

Relationshipwith related
party

Details oftransaction

Transaction
amounts(Millions of yen)

Item

Balance as ofMarch 31, 2020
(Millions of yen)

¥ 200

Department
store business

None

Lease of realestateAcceptanceofdeposits—

Deposit¥27,099
Messages fromthe Top Management

Subsidiaryof Related
Company

Name ofCompany, etc.

Fiscal year ended March 31, 2021

Name ofCompany, etc.

Subsidiaryof Related
Company

HankyuHanshin
Department
Stores, Inc.

Address

Amountof capital(Millions of yen)

Business¥ 200

Department
store
business

Kita-ku,
Osaka City

Votinginterest

Transaction
Relationshipamounts
Details ofwith relatedtransaction
party(Millions (Thousands of
U.S. dollars)of yen)None

Lease of realestate,AcceptanceDirectorsofholding
deposits
concurrent
posts

—

—

Balance as ofMarch 31, 2021

Item

(Millionsof yen)(Thousands of
U.S. dollars)¥27,098$244,126

DepositCreating Real Value:
Our Story

Type

Notes:
1. The transaction amount and the balance as of the end of the fiscal year do not include any consumption tax.
2. Terms and conditions of transactions and policies for determining terms and conditions of transactions
Terms and conditions for deposits are determined in the same way as general transactions.
II.

Directors and principal shareholders (only individual shareholders) of the company submitting the consolidated financial statements

Fiscal year ended March 31, 2020
Creating Real Value:
The Processes

Balance as ofMarch 31, 2020
(Millions of yen)Type

Name ofrelated party

Address

Amountof capital(Millions of yen)

Business

Votinginterest

Relationshipwith related
party

Details oftransaction

Transaction
amounts(Millions of yen)

Audit &
Supervisory
Board
MemberHaruo
Sakaguchi—¥ —Auditorof theCompany

Directly
0.0%

Lease of realestateLease of realestate¥ 53

DepositDirectorof Major
Subsidiary

TomiyukiMatsuda——Director at
Hankyu Hanshin
Properties Corp.

Directly
0.0%

Contract forrenovation
work

Renovation
work

10

—

Item

¥ 40

—

Creating Real Value:
The Foundations

Fiscal year ended March 31, 2021
Amount of capital
Address

Haruo
Sakaguchi

—

¥ —

$ —

Close relative
Closeof Major
relative of
Subsidiary’s
ToshiroAuditorKuroki———

Auditorof Major
Subsidiary

Transaction
amounts

Votinginterest

Relationshipwith related
party

Auditorof Hankyu
Corporation

Directly
0.0%

Lease of real Lease of realestateestate¥ 53

Close relativeof Auditorof Hanshin
Electric Railway
Co., Ltd.

None

Sale of
Sale ofcondominiums condominiums

28

Business(Millions (Thousands of
U.S. dollars)of yen)Details oftransaction

Balance as ofMarch 31, 2021

Item

(Millions (Thousands ofof yen)U.S. dollars)(Millions (Thousands ofof yen) U.S. dollars)$ 477 Deposit

252

—

¥ 40

$ 360

—

—

Financial Section andCorporate Data

Name ofrelated
party

Type

Notes:
1. The transaction amount and the balance as of the end of the fiscal year do not include any consumption tax.
2. Terms and conditions of transactions and policies for determining terms and conditions of transactions
Terms and conditions for leases are determined by referencing to similar transaction cases in the neighboring area.
Terms and conditions for sales of condominiums are rationally determined after negotiations, taking into consideration the actual market value.

21.2

Notes about parent company and major affiliated companies

No items

Hankyu Hanshin Holdings Integrated Report 2021

108

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

22. Per Share Information 
Net assets per share and the calculation basis, net income or net loss per share and the basis for their respective calculations are as shown below.
(1) Net assets per share (Yen / U.S. dollars)

2020

2021

¥ 3,738.56¥ 3,598.83

$

2021
32.42

(Basis for the calculation)
Total net assets (Millions of yen / Thousands of U.S. dollars)¥ 937,672¥ 909,985$ 8,198,063

Amount to be deducted from total net assets(Millions of yen / Thousands of U.S. dollars)

¥

¥

$

(Of the amount, non-controlling interests)¥ [32,025]¥ [42,834]$ [385,892]

Net assets at the end of the fiscal year related to common shares(Millions of yen / Thousands of U.S. dollars)¥ 905,647¥ 867,151

7,812,171

Common shares issued (Thousands of shares)

254,281254,281

Treasury stock shares (Thousands of shares)

10,877

12,16632,02542,834

385,892Common shares held by consolidated subsidiaries and equity-method affiliates(Thousands of shares)

1,159

1,161

Common shares used to calculate net assets per share (Thousands of shares)

242,245

240,953¥225.69¥ (151.72)$¥

54,859¥ (36,702)$ (330,649)

¥ —

¥ —

$ —

54,859¥ (36,702)$ (330,649)

243,077

241,903(2) Net income (loss) per share (Yen / U.S. dollars)(1.37)(Basis for the calculation)
Net income (loss) attributable to owners of the parent(Millions of yen / Thousands of U.S. dollars)Amount not belonging to common stockholders(Millions of yen / Thousands of U.S. dollars)
Net income (loss) attributable to owners of the parent related to common share(Millions of yen / Thousands of U.S. dollars)
Average number of common shares during term (Thousands of shares)¥

Notes:
1. In calculating net assets per share, the number of shares in the Company owned by the officer’s compensation BIP trust is included in that of treasury stock shares
to be excluded from the total number of outstanding shares at the end of the fiscal year. Furthermore, in calculating the net income (loss) per share for the current
fiscal year, the number of the shares in the Company owned by the officer’s compensation BIP trust is included in that of treasury stock shares to be excluded in
calculating the average number of the shares during the current fiscal year. The number of such treasury stock shares deducted in calculating the net assets per
share as of March 31, 2020 was 367,308, and, as of March 31, 2021, was 408,268. The average number of treasury stock shares deducted in calculating the net
income (loss) per share for the fiscal year ended March 31, 2020, was 371,785, and, for the fiscal year ended March 31, 2021, was 371,271.
2. As there are no residual shares with a dilutive effect, diluted net income per share for the consolidated fiscal year ended March 31, 2020 has been omitted. For
the consolidated fiscal year ended March 31, 2021, diluted net income per share is omitted because a net loss per share was recorded despite the existence ofdilutive shares.

23. Subsequent Events 
23.1
Not applicable.

109

Hankyu Hanshin Holdings Integrated Report 2021

Notes to the Consolidated Financial Statements

24. Consolidated Supplementary Statements 
24.1

Corporate bond statements
Millions of yen
Company

Hankyu Hanshin Holdings, Inc.

Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.

Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.

Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hankyu Hanshin Holdings, Inc.

¥ 15,000

Sep 22, 2010

7,000

7,000

Mar 17, 2011

10,000

Oct 25, 2013

10,000Jul 18, 2014

10,000Dec 15, 2016

Security

Redemption date

1.430％None

Sep 18, 2020

63,063

1.720

None

Sep 22, 2022

—

—

1.540

None

Mar 17, 2021

10,00090,090

0.819

None

Oct 25, 2023

10,00090,090

1.202

None

Jul 18, 2029

10,00010,000(10,000)

90,090(90,090)

0.120

None

Dec 15, 2021

Dec 15, 2016

10,00010,00090,090

0.817

None

Dec 15, 2036

Sep 13, 2018

10,00010,00090,090

0.345

None

Sep 13, 2028

Sep 13, 2018

10,00010,00090,090

0.789

None

Sep 13, 2038

Nov 21, 201910,00010,00090,090

0.215

None

Nov 21, 2029

Nov 21, 201910,00010,00090,090

0.878

None

Nov 19, 2049

Feb 27, 2020

10,00010,00090,090

0.486

None

Feb 27, 2040

Jul 17, 2020—

20,000180,180

0.001

None

Jul 14, 2023

Jul 17, 2020—

10,00090,090

0.120

None

Jul 17, 2025

Jul 17, 2020—

20,000180,180

0.280

None

Jul 17, 2030

Feb 26, 2021—

20,000180,180

0.090

None

Feb 26, 2026

Feb 26, 2021—

10,00090,090

0.270

None

Feb 26, 2031

Feb 26, 2021—

20,000180,180

0.680

None

Feb 26, 2041

122,000

197,000(10,000)

1,774,775(90,090)

—

—

—

—

—

¥

—

$

—

Creating Real Value:
The Processes

Total

Sep 22, 2010

Interest rate

Creating Real Value:
Our Story

Hankyu Hanshin Holdings, Inc.

Balance asof April 1,
2020

Messages fromthe Top Management

Hankyu Hanshin Holdings, Inc.

Series 40 unsecured
corporate bonds
Series 41 unsecured
corporate bonds
Series 42 unsecured
corporate bonds
Series 46 unsecured
corporate bonds
Series 47 unsecured
corporate bonds
Series 48 unsecured
corporate bonds
Series 49 unsecured
corporate bonds
Series 50 unsecured
corporate bonds
Series 51 unsecured
corporate bonds
Series 52 unsecured
corporate bonds
Series 53 unsecured
corporate bonds
Series 54 unsecured
corporate bonds
Series 55 unsecured
corporate bonds
Series 56 unsecured
corporate bonds
Series 57 unsecured
corporate bonds
Series 58 unsecured
corporate bonds
Series 59 unsecured
corporate bonds
Series 60 unsecured
corporate bonds

Balance asof March 31,
2021

Issue date

ProfileHankyu Hanshin Holdings, Inc.

Name

Thousands of
U.S. dollars
Balance asof March 31,
2021

Notes:
1. The figures in parenthesis for the balances as of March 31, 2021 are the amounts payable within one year of the total outstanding and are listed as current
liabilities in the consolidated balance sheet.
2. The amounts of bonds scheduled to be redeemed within five years subsequent to March 31, 2021 are as follows.

Due within one year

Millions of yen

Thousands of
U.S. dollars¥ 10,000$ 90,090

7,000

63,063Due after two years through three years

30,000270,270

Due after three years through four years
Due after four years through five years——

30,000270,270

Creating Real Value:
The Foundations

Due after one year through two years

Financial Section andCorporate Data

Hankyu Hanshin Holdings Integrated Report 2021

110

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

24.2

Statements of loans payable
Millions of yen

Thousands of
U.S. dollars
Balance as ofMarch 31, 2021

Balance as ofApril 1, 2020

Balance as ofMarch 31, 2021

¥ 123,710¥ 106,263$ 957,324

Current portion of long-term debt

34,69644,971

Current portion of lease obligations

2,404

Long-term debt (excluding current portion)
Lease obligations (excluding current portion)

Item
Short-term borrowings

Other interest-bearing debt
Commercial paper (to be repaid within one year)
Total

Average interest
rate

Repayment deadline

0.334%—

405,144

0.783

—

3,206

28,883—615,058

673,387

6,066,550

0.776

2022–2041

5,609

8,219

74,045—2022–2031——

30,000270,270(0.057)—

781,480

866,048

7,802,234——

Notes:
1. The balances refer to those after the elimination of transactions between
companies in the consolidated group.
2. “Average interest rate” of loans payable refers to the weighted averageinterest rate for outstanding loans as of the end of the fiscal year ended
March 31, 2021.

Millions of yen

Thousands of
U.S. dollars

Due after one year through two years¥ 54,271$ 488,928

Due after two years through three years

90,905

818,964Due after three years through four years

82,436742,667

Due after four years through five years

70,250632,883

Millions of yen

Thousands of
U.S. dollars

Long-term debt

3. For lease obligations, “average interest rate” is not shown because theCompany uses mainly the method that includes the amount of interest

Lease obligations

in total lease obligations and that spreads the total amount of interest

Due after one year through two years¥ 2,805$ 25,270

Due after two years through three years

2,316

20,865Due after three years through four years

1,695

15,270Due after four years through five years

822

7,405

equally over each fiscal year of the lease period.
4. T he repayment schedule for long-term debt and lease obligations(excluding those scheduled to be repaid within one year) within five years
subsequent to March 31, 2021 is as follows.

24.3

Schedule of asset retirement obligations

The schedule is omitted as the significance was negligible.

111

Hankyu Hanshin Holdings Integrated Report 2021

Others
Quarterly financial information in fiscal year ended March 31, 2021
1st Quarter

2nd Quarter

3rd Quarter

4th Quarter¥ 111,286¥ 241,018¥ 394,037¥ 568,900

Loss before income taxes for quarter of the fiscal year (Millions of yen)

(25,510)(29,165)(18,941)(41,013)

Net loss attributable to owners of the parent for quarter of the fiscal year
(Millions of yen)

(18,900)(23,007)(16,858)(36,702)

Net loss per share for quarter of the fiscal year (yen)(78.02)(94.97)(69.62)(151.72)

Cumulative period
Revenues from operations (Millions of yen)

2nd Quarter

3rd Quarter

4th Quarter$ 2,171,333$ 3,549,883$ 5,125,225

Loss before income taxes for quarter of the fiscal year (Thousands of U.S. dollars)(229,820)(262,748)(170,640)(369,486)

Net loss attributable to owners of the parent for quarter of the fiscal year
(Thousands of U.S. dollars)(170,270)(207,270)(151,874)(330,649)(0.70)(0.86)(0.63)(1.37)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter¥ (78.02)¥ (16.95)¥ 25.40¥ (82.28)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter$ (0.70)$ (0.15)$ 0.23$ (0.74)

Net loss per share for quarter of the fiscal year (U.S. dollars)
Accounting period
Net income (loss) per share for quarter of the fiscal year (yen)Accounting period
Net income (loss) per share for quarter of the fiscal year (U.S. dollars)

Messages fromthe Top Management

1st Quarter$ 1,002,577

ProfileCumulative period
Revenues from operations (Thousands of U.S. dollars)

Creating Real Value:
Our Story
Creating Real Value:
The Processes
Creating Real Value:
The Foundations
Financial Section andCorporate Data

Hankyu Hanshin Holdings Integrated Report 2021

112

Financial Section and Corporate Data

Major Group Companies■ Consolidated Subsidiaries (As of March 31, 2021)■ Urban Transportation■ Entertainment

Name of company

Railway operations

Hankyu Corporation

Name of company

SportsHanshin Electric Railway Co., Ltd.

Hanshin Tigers Baseball Club, Ltd.

Nose Electric Railway Co., Ltd.
Kita-Osaka Kyuko Railway Co., Ltd.
Automobile

Takarazuka Creative Arts Co., Ltd.
Umeda Arts Theater Co., Ltd.

Hanshin Taxi Co., Ltd.
Hankyu Corporation
Eki Retail Service Hankyu Hanshin Co., Ltd.
Hankyu Style Labels Co., Ltd.
Alna Sharyo Co., Ltd.
Hankyu Sekkei Consultant
Hanshin Station Net Co., Ltd.

■ Real Estate
Real estate leasing

Real estate sales andother business

Hankyu Corporation

Hankyu Bus Co., Ltd.
Hankyu Taxi Inc.

Other

Hanshin Contents Link Corporation
Stage

Kobe Rapid Transit Railway Co., Ltd.
Hanshin Bus Co., Ltd.

Retailing

Hanshin Electric Railway Co., Ltd.

Name of company■ Information and Communication Technology
Name of company

Information andCommunication
Technology■ Travel
Travel agency

Itec Hankyu Hanshin Co., Ltd.
Bay Communications Inc.

Name of company

Hankyu Travel International Co., Ltd.
Hankyu Travel Support Co., Ltd.

■ International Transportation

Name of company

Hankyu Corporation

International

Hankyu Hanshin Express Co., Ltd.

Hanshin Electric Railway Co., Ltd.

transportation

Hankyu Hanshin Logipartners Co., Ltd.

Hankyu Hanshin Properties Corp.

HHE (USA) Inc.

Hankyu Corporation

HHE (Deutschland) GmbHHanshin Electric Railway Co., Ltd.

HHE (HK) Limited

Hankyu Hanshin Properties Corp.

HHE Southeast Asia Pte. Ltd.

Hankyu Hanshin Building Management Co., Ltd.

HHE: Hankyu Hanshin Express

Hankyu Hanshin High Security Service Co., Ltd.
Hankyu Hanshin Clean Service Co., Ltd.
Hankyu Hanshin REIT Asset Management, Inc.
Hankyu Hanshin Housing Support Ltd.

■ Hotels
Hotel management

Name of company

Hankyu Hanshin Hotels Co., Ltd.
Hanshin Hotel Systems Co., Ltd.
Arima View Hotel Co., Ltd.

■ Other
Construction

Name of company

Hanshin Kensetsu Co., Ltd.
Chuo Densetsu Co., Ltd.

Advertising andmedia design

hankyu hanshin marketing solutions Inc.

Outsourcing services
for personnel andaccounting services

Hankyu Hanshin Business
Associate Co., Ltd.

Credit and point card Hankyu Hanshin Card Co., Ltd.
Group finance■ Equity-Method Affiliates (As of March 31, 2021)
Main business

Name of company

Department store

H2O RETAILING CORPORATION(Securities code: 8242)

Railway operations

Nishi-Osaka Railway Co., Ltd.
Kobe Electric Railway Co., Ltd.
(Securities code: 9046)

Motion picturebusiness
Real estate leasing
Commercial
broadcasting

113

TOHO CO., LTD. (Securities code: 9602)
TOKYO RAKUTENCHI CO., LTD.
(Securities code: 8842)
Kansai Television Co., Ltd.

Hankyu Hanshin Holdings Integrated Report 2021

Hankyu Hanshin Financial Support Co., Ltd.

Company Overview and Investor Information
Hankyu Hanshin Holdings, Inc. (As of March 31, 2021)
Paid-in Capital¥99,474 million

1-16-1, Shibata, Kita-ku, Osaka 530-0012, Japan

Fiscal Year-End

March 31

Number of Employees

23,192 (consolidated)

Authorised Shares

640,000,000

Issued Shares

254,281,385

Phone: +81-6-6373-5001(IR Office, Corporate Communication Dept., Group Planning Div.)
Fax: +81-6-6373-5042
Tokyo Office (Personnel and General Affairs Div.)

ProfileHead Office

Number of Shareholders 77,070

17F Toho Hibiya Bldg. 1-2-2, Yurakucho, Chiyoda-ku,
Tokyo 100-0006, Japan
Phone: +81-3-3503-1568
Fax: +81-3-3508-0249

Unit of Trading

100 shares

Stock Exchange Listing

Tokyo

Transfer Agent

Mitsubishi UFJ Trust and Banking Corporation

Messages fromthe Top Management

Ownership Breakdown

Principal Shareholders
Percentage(%)

The Master Trust Bank of Japan, Ltd. (Trust account)

18,919

7.80

Custody Bank of Japan, Ltd. (Trust account)

11,635

4.80

Nippon Life Insurance Company(Standing Proxy: The Master Trust Bank of Japan, Ltd.)

5,224

2.15

H2O RETAILING CORPORATION

4,207

1.73

STATE STREET BANK WEST CLIENT–TREATY 505234 (Standing Proxy:
Mizuho Bank, Ltd. Settlement & Clearing Services Division)

4,029

1.66

Custody Bank of Japan, Ltd. (Trust account 7)

3,895

1.61

Custody Bank of Japan, Ltd. (Trust account 5)

3,872

1.60

Sumitomo Mitsui Banking Corporation

3,581

1.48

Custody Bank of Japan, Ltd. (Trust account 6)

3,433

1.42

Custody Bank of Japan, Ltd. (Trust account 1)

3,083

1.27

Name

Financial
institutions

28.92%

Individuals
and others

42.14%

Securities
companies

Creating Real Value:
Our Story

Number of shares(Thousands)

1.09%

Other
corporations

Foreigncorporations
and individuals

8.16%

19.69%Creating Real Value:
The Processes

Stock Price and Annual Trading Volume (Tokyo Stock Exchange)

Stock price (¥)

5,000

Stock Price

Trading volume(Thousand shares)

Trading volume (right axis)

200,000
160,000

3,000

120,000

2,000

80,0001,000

40,0000Creating Real Value:
The Foundations

4,000

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 (FY)

Financial Section andCorporate Data

2011
Notes:

1. The stock prices are as of the end of each fiscal year (March 31). The trading volumes are for each fiscal year (April 1 to March 31).
2. The data takes into account the reverse stock split and the change of trading unit conducted with an effective date of August 1, 2016.

Hankyu Hanshin Holdings Integrated Report 2021

114

Hankyu Hanshin Holdings, Inc.
1-16-1, Shibata, Kita-ku, Osaka 530-0012, Japan
Phone: +81-6-6373-5001 Fax: +81-6-6373-5042
https://www.hankyu-hanshin.co.jp/en/

Hankyu Hanshin Toho Group