May, 2021
Hankyu Hanshin Holdings, Inc.

Main Questions and Answers during the Briefing on Earning Results
for the Fiscal 2021 (Year Ended 31st March 2021)*Please be aware that this document is not a verbatim account of everything that was said during at thequestion and answer session held during the briefing. The Company has made additions andmodifications, and summarised the content as it judged appropriate.
*Please also note that the information presented here is based on the briefing held on May 21.

[Questions about the Company in general]<< Strategic direction of businesses >>Q. In the Travel, International Transportation, and Hotels businesses, you embarked on a program ofstructural reform some time ago. How has the pandemic impacted the reform process in each business?
Your Urban Transportation and Entertainment businesses are predicated on physical travel or physicalattendance, which the pandemic has undermined, so do you think you will need to reform thesebusinesses too?
A. To start with the Travel business, we started structurally reforming this business in fiscal 2018. In
fiscal 2020, the reform program started to pay off: For the first three quarters of that year, we achieved¥4.5 billion in operating income. It’s true that circumstances are tough now because of the pandemic,
but I believe that once the situation abates, we’ll see the structural reform taking effect again anddriving business growth. Our Travel business owns few travel agency stores and thus enjoys relatively
low fixed expenses compared to its industry peers. Given this, the key to improving its profitability is
to go further and faster in digitizing its services—to do more online. Take travel advertising, forexample. The travel business has traditionally advertised tours through physical media likenewspapers, but it could cut down on costs by placing more tour ads online. It can also use online
advertising to reach out to young people (in addition to middle-aged and senior demographics, the main
target up until now) and grow its revenue.
Regarding the International Transportation business, for some years now we have worked on two
strategic priorities. First, we want to build a more balanced portfolio by growing the oceantransportation business alongside the logistics business and further enhancing the competitiveness of
air transport. Second, we want to shift away from the focus on Japan as the origin or destination forshipments by increasing the volume of shipments to and from locations elsewhere in Asia. Both thesetasks require us to expand the amount of volume handled, so that’s what we have been focusing on. We
see no reason to change the direction of reform in this business. This program will take some time, but
we will steadily rack up results and make the business more profitable.
As for the Hotels business, here too we were already working on a reform program back in prepandemic times, but the pandemic has prompted us to accelerate the process, and so we are now
proceeding at full pace with a comprehensive reform program that covers operational, personnel, andfinancial aspects—as shown on page 40. Regarding the operation of full-service hotels, as I mentioned
during the supplementary briefing at the start, we had for some time been mulling the fate of these1

hotels and exploring how we could make better use of the assets in order to secure the profitability one
would expect from such prime real estate. Eventually, we decided that now was the time to announce
the closure of Hotel new Hankyu Osaka and Senri Hankyu Hotel.
In the second part of your question, you asked about the businesses that are predicated on real-world
travel and attendance. As regards the Urban Transportation business, until now our top strategic
priority in this business has been to generate new ridership demand by helping grow the resident andnon-resident populations in areas served by our lines. However, we also recognize that this kind ofproject cannot be achieved overnight, so in the meantime, we’re taking action to increase revenues andcut down on costs. One idea we have to increase revenues is to provide premium seating (seats reservedfor a surcharge), which will cater to the rising demand in the new normal for more space and privacy
in rail travel. Another idea concerns the customer data we hold; we can use this data for digitalmarketing in order to generate new travel demand. One idea for cutting down on costs is to use robotics
and IoT-driven technology to streamline station operations and maintenance work. These actions will
help reduce our break-even point.
As for the Entertainment business, we believe that the demand for in-person attendance of baseballgames and shows will remain strong in the new normal, so our primary focus will be to further enhance
the stadium and theater experience. But alongside that we will also develop digital content. In the caseof Takarazuka Revue, for example, we have used the Internet to livestream shows and provide online
shopping. We’ll continue working on digital services with a view to boosting our revenue capacity.
<< Cost structure reform >>Q. How will you reform the cost structure in each business to succeed in the post-pandemic landscape?
A. As mentioned during the supplementary briefing at the start, we fully recognize that the new normal
has far-reaching strategic implications for our organization. The Urban Transportation business, forinstance, will be affected by a decline in travel demand. For our businesses to maintain or improve theirprofit levels in the new normal, they must reduce their break-even point. To that end, we’ll use digitaltechnology and implement a digital transformation to streamline the business’ workflows and enhance
productivity (save labor).
<< Shareholder returns >>Q. Why did you decide to keep the dividend per share at the same level?
A. Back in April 2020, when a state of emergency was declared, the outlook was very opaque. Hence,
we left the dividend forecast undecided when announcing the financial results in May 2020. It latertranspired that we would avoid the worst-case scenario (a prolongation of the situation in April andMay), so when it came to announcing the 1Q results in August 2020, we announced that we would
maintain the full-year dividend of ¥50 per share.
There are two main reasons for keeping the dividend at this level. First, we believe that thepandemic’s impact will be transitory from a medium- to long-term perspective (while there will be no2

complete return to pre-pandemic conditions, there will be a substantial recovery). Second, we have areasonable financial footing.
For fiscal 2022, we expect to set the dividend at the same level again on the assumption thatperformance will exceed that of fiscal 2021.

[Business-specific questions]
Urban Transportation
Q. Do you have plans to change rail and bus fares?
A. For trains and buses, fares are set based on fully distributed cost (FDC) pricing. In the case of therailway business, fare increases are unlikely at this stage given the recent performance trends andoutlook for Hankyu and Hanshin lines.
We recognize that the topic of fares, including the use of peak and off-peak fares, can be quitecontentious. When introducing a new fare system, the critical factor is how acceptable it will be tocustomers and the general public, so we’ll always keep in mind public receptivity when exploring
improvements to fares.
Real Estate
Q. Do you have any idea at this stage for what you will do with the site of Senri Hankyu Hotel once thehotel closes?
A. As mentioned on page 43, plans are already underway to redevelop the vicinity around Senri-Chuo
Station, which is adjacent to the hotel. Another point to consider is that the dilapidated state of Hankyu
Senri Chuo Building, an office complex on the north side owned by our group. We need to take thesefactors into account and explore ideas for better community development that will enhance the overall
appeal of the Senri Chuo area.
As mentioned on page 71, for the past 10 years, we have worked to develop the NishinomiyaKitaguchi area as an attractive locale through a variety of measures, including opening a large-scale
shopping facility, Hankyu Nishinomiya Gardens. Senri Chuo is another key strategic area for us, so as
in Nishinomiya-Kitaguchi, we’ll confer with local government and other stakeholders to make sure thatthe redevelopment plan will be broadly supported.
Q. What is your forecast for the performance of the real estate leasing business in fiscal 2022? What isthe current situation with offices?
A. The forecast for the leasing business for fiscal 2022 is as stated on page 62. That is, we forecast higher
revenue from operations, but lower operating income, compared to fiscal 2021.
The revenue growth is attributable to the recovery from the effects of the pandemic as well as
increased contributions from newly completed projects, such as the Umeda 1-1 Project and LOGiSTA
Logicross Ibaraki Saito. As for why there is less operating income, one reason is that we are recording3

pandemic-related losses as operating expenses, rather than as extraordinary losses as we did in fiscal
2021. Another factor is the increase in depreciation cost associated with the newly completed projects.
Note, however, that operating income would be up year-on-year if the COVID-19-related losses in fiscal
2021 were recognized as operating expenses.
As for your question about offices, as shown on page 91, vacancy rates have risen in the Umeda area,from 0.93% in March 2020 to 3.36% in March 2021. Across our group as a whole, however, the increase
has been only slight, from 0.7% to 1.7%. In other words, occupancy rates remain high.
Demand remains firm for our office spaces in the Osaka-Umeda area. Although some offices haverelocated or downsized, we continue to attract new tenants.
International Transportation
Q. For the International Transportation business, you have forecasted a decline in revenue and income.
How do you explain this forecast in light of the fact that freight rates continue to rise and automobile
related cargo—which accounts for a large share of the freight you handle—continues to perform well?
A. You’re right about the current trends, but we nonetheless released this forecast because demand
looks likely to trend low relative to the previous period, when East Asia saw emergency demand, andbecause we cannot tell how long present trends will last.

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