INTEGRATED REPORT

2020

Securities code: 9042

Profile

Group Management Philosophy
Contents

MissionWhat we try to achieve
chapter■ Customers First■ Sincerity

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

Gain customers' confidence byalways being sincere.

■ Foresight & Creativity
With our pioneer spirit and flexible
thinking, we create a new value.

■ Respect for People
Everyone is absolutely
invaluable to the Group.

ProfilechapterGroup Management Philosophy

3

Business Overview

5Service Area

7

Financial Highlights / Non-Financial Highlights

chapter

02

Messages fromthe Top Management

9

Message from the Chairman

11

Message from the President

chapter

03

Creating Real Value:
Our Story

Growth Trajectory

17

Creating Real Value: Our Story
Value Creation Process

Principles

23

Summary of Long-Term Management Vision

How to act to uphold our values and fulfil our mission

25

Project Progress

27

COVID-19: Its Impact and Our Response

3. We take pride and responsibility in our work, and carry it out promptly.

and Medium-Term Management Plan

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.

chapter

04

P47

Special Discussion

The Aspiration and Passion Behindthe Hankyu Hanshin Holdings Group
Sustainability Declaration

43

Sustainability Declaration

47

Special Discussion: Ms. Mari Yoshitaka and56

G Priority Issue 6 Robust governance

Chairman Kazuo Sumi
63
65

Carefully Nurtured Strengths

2. We abide by the laws and regulations, and act with a clear awareness of our social
responsibilities.

ESG Initiatives

Directors and Audit &Supervisory Committee Members

15

21

1. We treasure encounters with people, and do our best in the position of a customer.

05

Special Feature

1

ValuesWhat is important to us

01

ProfileBy delivering "Safety and Comfort" and"Dreams and Excitement," we create satisfaction
among our customers and contribute to society.

Business Strategies

S Priority Issue 1 Safe, reliable infrastructure

69

Priority Issue 2

Thriving communities

71

Priority Issue 3Life designs for tomorrow

73

Priority Issue 4

Empowering individuals

Priority Issue 5

Environmental protection

76E

chapter

06

Financial Section
and Corporate Data

79

Consolidated Six-Year Summary

80

Consolidated Financial Review

84

Business Risks

86

Consolidated Balance Sheets

88

Consolidated Statements of Income /29

Urban Transportation

31

Real Estate

33Entertainment

89

Consolidated Statements of Changes in Net Assets

35

Information and Communication Technology

91

Consolidated Statements of Cash Flows37

Travel92

Notes to the Consolidated Financial Statements

39

International Transportation

117

Major Group Companies

41

Hotels118

Company Overview and Investor Information

Consolidated Statements of Comprehensive Income

Editorial Policy
This integrated report, in addition to a review of fiscal 2020, also
describes the management policies and ESG-related initiatives ofHankyu 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 our Company.
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, and Settsu
cities and Shimamoto town
Hyogo Prefecture: Kobe City (Higashi-Nada, Nada, Hyogo, Nagata, andChuo, 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 total of 11 wards); and Muko andNagaokakyo cities and Oyamazaki town

1

Hankyu Hanshin Holdings Integrated Report 2020

Period under Review

This integrated report is based on the fiscal year 2020 (April 2019‒March 2020),
however it also includes information pertaining to activities before and after thisperiod.

Forward-Looking Statements

The reader is advised that this integrated report contains forward-looking
statements regarding the future plans, strategies, and earnings performance ofHankyu Hanshin Holdings, Inc., which are not statements of historical fact but
constitute estimates or projections based on facts known to the Company's
management as of September 2020. Actual results may be influenced by various
business risks and uncertainties, and differ substantially from such statements.

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 Company's Securities Reportfor the 182nd period, audited by KPMG AZSA LLC and presented in a somewhat
modified format. We have presented this information in such a way as to ensurethat there is no discrepancy with the data presented in the annual securities
report. However, the integrated report itself has not been audited by KPMG
AZSA LLC.

Reference Guidelines
This report references theInternational Integrated
Reporting Council'sInternational Integrated
Reporting Framework andthe Ministry of Economy,
Trade and Industry's
Guidance for Collaborative
Value Creation. It also
references the Global
Reporting Initiative's GRI
Standards for its ESG
information.

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
a message from management, a list of Group companies, and an outline of the scope of Group businesses.

Securities Report

Based upon Article 24, Paragraph 1 stipulated in the Financial Instruments and Exchange Act, this report isrequired 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 theTokyo Stock Exchange. Please consult this report for information on our Corporate Governance stance andsystems.

Sustainability
Data Book

This data book contains detailed information regarding our Group's ESG initiatives. Please consult this data
book for 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 on Hankyu Corporation and Hanshin Electric Railway.

Hankyu Hanshin Holdings Integrated Report 20202

Profile

Business Overview
Nature of BusinessCore Companies

Railway operations

Automobile business(bus, taxi)

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

Revenues
fromoperations
Hankyu Corporation

OperatingincomeHanshin Electric Railway

Segment
assets*Including tier 2 railway operators

Leasing business

Real EstateThis business owns numerous
office buildings and facilities,
mainly in Osaka-Umeda andthe lineside areas of the Hankyu
and Hanshin lines. In recent
years, the business has been
actively pursuing developmentof real estate in the Tokyo
metropolitan area.

236.0 billion（YoY −0.5 %）Operating¥ 41.5 billion（YoY −15.7 %）incomeSegment¥ 1,178.2 billion（YoY +2.9 %）assets
Revenues
fromoperations

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

*1

Hankyu Hanshin Properties Corp.

227.2 billion（YoY −4.8 %）¥ 40.1 billion（YoY −7.8 %）¥ 816.2 billion（YoY +2.0 %）¥Percentage of
Revenues fromOperations*3

Percentage ofOperating
Income*3

Percentageof Assets−¥4.7 billion

Retailing businessThis business manages and operates
shops mainly inside railway stations
on the Hankyu and Hanshin lines.

Impact of COVID-19 −¥5.2 billion

Percentages by Segment (%)

ProfileUrban
Transportation

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.

Fiscal 2020 Results*2

28.1

¥

40.7

34.3

−¥4.4 billion

Sports businessEntertainment

Information andCommunication
Technology

This business manages the Hanshin Tigers
professional baseball team, which has ahistory of more than 80 years, as well as the
team's home ground and high-school baseballmecca Hanshin Koshien Stadium and related
businesses. The business also operates amusic business (Billboard Live).

Information and communication
technology businessThis business is in charge of the information
services business, which offers a range ofIT-based services such as system development;
the broadcasting and communications business,
which provides multi-channel broadcasts,

Travel businessTravelThis business plans, markets, arranges, andsupports travel for Japanese people in Japanand overseas and for inbound tourists. The
business provides various travel services
which include: media sales to sell packaged
tours through advertisements in newspaper,

International transportation
business

International
Transportation

As a global forwarder, this business responds
to diverse distribution needs from customers
all over the world through its five-region
management system comprising Japan, theAmericas, EMEA,*4 East Asia, and ASEAN.
Domestic bases: 52 / Overseas bases: 134(As of September 1, 2020)

Hotels business

Hotels3

Hankyu Hanshin Holdings Integrated Report 2020

This business operates a wide range of hotelformats, from "city hotels" through to businesshotels mainly comprising guest rooms forovernight stays.
Directly managed hotels: 21
Franchised hotels: 28
Total hotels: 49 (with 12,470 guest rooms)(As of September 1, 2020)

Revenues
fromoperations

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

internet services, and fixed telephone services;and the safety/education business, which
operates ProgLab robot programming classes forchildren, and Mimamorume, a child safety
service which monitors children's journeys toand from school.

OperatingincomeHanshin Electric Railway

Segment
assets

Revenues
fromoperations

Hanshin Electric Railway

OperatingincomeSegment
assetsinternet and other media, individual tours withitineraries that can be created freely, group
tours that we propose for study or as
educational tours visiting enterprises orschools, counter sales at shops, tours for theinbound international visitors and arrangementsfor overseas business trips.

By bringing together air freight, sea freight,
land freight, warehousing/logistics, andcustoms clearance services, the businessprovides a comprehensive, one-stop logistics
solution that can respond to diverse customer
needs. As global businesses become moreadvanced, the international transportation
business provides the ideal solution.

Revenues
fromoperations
OperatingincomeHankyu Travel International

Segment
assets

Revenues
fromoperations
OperatingincomeHankyu Hanshin Express

Segment
assets

Revenues
fromoperations

In addition to the hotels mentioned on theleft, the business manages The Ritz-Carlton
Osaka, based on an alliance with the
Ritz-Carlton chain of international luxury
hotels.

OperatingincomeHankyu Hanshin Hotels

74.0 billion（YoY −0.7 %）¥ 11.7 billion（YoY −13.0 %）¥ 107.6 billion（YoY +1.3 %）¥−¥3.0 billion

Hankyu Corporation

Segment
assets

58.6 billion（YoY +9.4 %）¥ 5.6 billion（YoY +6.0 %）¥ 55.7 billion（YoY +4.0 %）

29.2

¥

−¥4.9 billion

33.8 billion（YoY −5.0 %）¥ 0.2 billion（YoY −86.8 %）¥ 47.3 billion（YoY −48.4 %）¥−¥3.1 billion

76.2 billion（YoY −15.3 %）¥ 0.2 billion（YoY −92.9 %）¥ 48.4 billion（YoY −1.0 %）¥−¥5.2 billion

60.3 billion（YoY −7.2 %）‑ ¥ 3.1 billion¥ 88.0 billion（YoY +4.7 %）¥−¥3.3 billion

9.2

42.1

49.5

11.9

4.5

7.2
4.2
9.4

7.5
5.3

5.7
0.2
0.2
2.4
−3.2

2.3
2.0
2.0
3.7
1.6

*1 As for our Real Estate Business, Hankyu Corporation andHanshin Electric Railway collaborate with Hankyu
Hanshin Properties to promote urban development ofreal estate owned by Hankyu Corporation and Hanshin
Electric Railway for rent and development incooperation with transportation networks, local
governing bodies and others in Umeda and theirline-side areas.
*2 Financial results for the Entertainment Business and theInformation and Communication Technology Businesses
for fiscal 2019 are based on reportable segment
information following the segment classification change.
*3 Figures for percentage of revenues from operations andoperating income are calculated based on the simple
aggregate amount (including intersegment transactions)of each segment.
*4 Europe, the Middle East, and Africa

Hankyu Hanshin Holdings Integrated Report 2020

4

NEPAL
NEPAL
Kathmandu
Kathmandu

ProfileN

Service Area

Arashiyama
Arashiyama

Expanding
Expandingthetheserviceservice
area
area
from
from
Kansai,Kansai,centering
centeringaroundaround
Umeda
Umeda
and
and
itsitsline-sideline-side
areas
areas
toto
the
the
Tokyo
Tokyo
metropolitan
metropolitan
area
area
and
and
toto
Asia
Asia
KobeKobe
Line Line 46.9
46.9
km km

Takarazuka
Takarazuka
Line Line
28.5
28.5
km km

Kyoto
Kyoto
Line Line 65.4
65.4
km km

KobeKobe
RapidRapid 2.82.8
km km
TransitTransitRailway
RailwayLine Line(Kyoto (Kyoto
Line, Senri
Line,Line,
SenriArashiyama
Line, ArashiyamaLine) Line)

Nissei-chuo
Nissei-chuo

HanshinHanshinElectric
Electric
Railway
Railway(Hanshin(Hanshin
Main Main
Line, Hanshin
Line, Hanshin
Namba
Namba
Line, Hanshin
Line, Hanshin
Mukogawa
MukogawaLine) Line)*See*See
pagepage
30 for
30thefor annual
the annual
numbernumberof passengers
of passengers
carried.
carried.

Osaka
Osaka
Prefecture
Prefecture
HankyuHankyuMinohMinohLine Line

Hyogo
Hyogo
Prefecture
Prefecture

Kita-senri
Kita-senri
Takarazuka
Takarazuka

HankyuHankyuKoyoKoyoLine Line

ItamiItami

HankyuHankyuItamiItami
Line Line

KoyoenKoyoenEsakaEsaka

HankyuHankyuKobeKobe
Line LineKob Kobe El e El
ectr ectr
ic R ic R
ailw ailw
ay ayHankyuHankyuTakarazuka
Takarazuka
Line Line

ShukugawaShukugawaTsukaguchi
Tsukaguchi
Nishinomiya-kitaguchi
Nishinomiya-kitaguchi

AwajiAwaji

ImazuImazu

KoshienImazuImazu Koshien
Mukogawa
MukogawaDaimotsu
Daimotsu

KobeKobe
Rapid
Rapid
TransitTransitRailway
Railway

HanshinHanshinKoshien
Koshien
Stadium
Stadium

Kobe-Kobesannomiya
sannomiya

Amagasaki
AmagasakiIndonesia
Indonesia

Tenjimbashisuji
Tenjimbashisuji
6-chome6-chome

Shibuya-ku
Shibuya-ku

Chuo-kuChuo-ku
Minato-ku
Minato-ku
Overseas
Overseas
real estate
real estate
salessales
businessbusiness
Overseas
Overseas
real estate
real estateleasingleasingbusinessbusiness

Japan
Japan

Total
Total
unitunit
sales
sales
overseas
overseasApprox.
Approx.
30,50030,500(including(including
thosethoseof businessof business
partners)
partners)(As of(AsSeptemberof September
1, 2020)
1, 2020)

Projects
Projects Total
Total
Units
Units

Directly
Directly
managedmanagedhotelshotels
Franchised
Franchised
hotelshotels

TokyoTokyo Tokyo
Tokyo
area area
9 hotels
9 hotels
5 hotels
5 hotels

Umeda
Umeda

Kyoto/Osaka/
Kyoto/Osaka/
Kobe Kobe
areasareas
11 hotels
11 hotels
2 hotels
2 hotels

VietnamVietnam5

ThailandThailand14 14
Approx.
Approx.
10,88010,880The ThePhilippines
Philippines

5

5 Approx.
Approx.
4,750
4,750

Indonesia
Indonesia

3

3 Approx.
Approx.
3,000
3,000

Malaysia
Malaysia

1

1

Osaka
Osaka
Bay
Bay

Kobe
Kobe
Airport
AirportKansaiKansai

Sumiyoshi(Kobe,(Kobe,
HyogoHyogo
Pref.) Pref.)16 Sumiyoshi(Kita-ku,(Kita-ku,
Osaka) Osaka)
3 Osaka-Umeda/Osaka
3 Osaka-Umeda/Osaka
10 Ashiya
10 Ashiya(Ashiya,(Ashiya,HyogoHyogo
Pref.) Pref.)17

Kobe
HyogoHyogo
Pref.) Pref.)17 Kobe (Kobe,(Kobe,

4 Okamoto
4 Okamoto(Kobe,(Kobe,
HyogoHyogo
Pref.) Pref.)11(Chuo-ku,(Chuo-ku,
Osaka)Osaka)
Takatsuki/Takatsuki-shi(Takatsuki,(Takatsuki,
Osaka Pref.)Osaka Pref.)18 Hommachi
18 Hommachi
11 Takatsuki/Takatsuki-shi

5 Mikage
5 Mikage(Kobe,(Kobe,
HyogoHyogo
Pref.) Pref.)
12

Esaka
12 Esaka

HyogoHyogo
Pref.) Pref.)
6 Ashiyagawa
6 Ashiyagawa (Ashiya,(Ashiya,
13 Yodoyabashi
13 Yodoyabashi(Suita, (Suita,
OsakaOsaka
Pref.) Pref.)18

Fukushima(Fukushima-ku,(Fukushima-ku,
Osaka) Osaka)
18 Fukushima(Chuo-ku,(Chuo-ku,
Osaka)Osaka)
20

Nakatsu(Kita-ku,
Osaka)Osaka)
20 Nakatsu (Kita-ku,

Applause
Applause
TowerTower● Umekita● Umekita
Phase
Phase
II
II
Development
Development
Project
Project

GRAND
GRAND
FRONTFRONTOSAKAOSAKA

100.0100.0
99.0 99.0
98.0 98.0
97.0 97.0
91

19

5

95
91 995
1
19

19

00

20

00

20

05

20

05

20

10

20

10

20

15

20

15

20

20

20

20

20

KansaiKansaiInternational
International
Airport
AirportHankyu Hanshin Holdings Integrated Report 2020

Umeda
Umeda

Metro

a Sta.

-Umed

OsakaOsaka
Nikko Nikko
Bldg. Bldg.

DIAMORDIAMOROSAKA
OSAKA● Umeda● Umeda1-1 Project1-1 ProjectJR
JR
Kit (UndergroundKit (Undergroundfacility)facility)UmedaUmeda
OS Bldg.
OS Bldg.
ash
ash
Osaka
Osaka
Umeda
Umeda
inc
inc
hi S
hi S
ta.
ta.
TwinTwin
TowersTowersSouthSouth(Hanshin(Hanshin
Umeda
Umeda
MainMainStore)Store)Osaka

The Thelargestlargestairportairportin inwesternwestern
Japan,
Japan,
and andthe Kansai
the Kansai
area'sarea'sgateway
gateway
to theto world
the world

101.0101.0

The Ritz-Carlton
The Ritz-Carlton
OsakaOsakaMetro

102.0102.0

HigashiKansaiKansaiInternational
International
Airport
AirportKansaiKansai

103.0103.0

Osaka

104.0104.0

O
Nis saka
hi-U Mme etrodaO
Nis saka Sta.
hi-U Mme etroda
Sta.

Population
Population
trendstrends
HankyuHankyuand and(1991(1991= 100)= 100)HanshinHanshinline-sideline-sidearea area

Osaka

Toyo Toyo
Keizai,Keizai,
as of January
as of January
1, 2020
1, 2020

Osaka

Metro

HankyuHankyuHEP FIVEHEP FIVE
GrandGrand
HigashiHigashi
Bldg. Bldg.
HankyuHankyuBldg. Bldg.
Umeda Umeda
HEP NAVIOHEP NAVIO
Hanshin Osaka-umeda
Hanshin Osaka-umeda
Sta. Hankyu
Sta. Hankyu
Bldg. Bldg.
HERBISHERBISENT ENT(Hankyu(Hankyu
Umeda Umeda
Main Store)
Main Store)
HERBISHERBISOSAKAOSAKA

Source:Source:Chiiki Chiiki
KeizaiKeizai
SoranSoran(Local(Local
EconomyEconomyDirectory),
Directory),
publishedpublishedbyby
Population
Population

105.0105.0

Hotel Hankyu
Hotel Hankyu
International
International

HankyuHankyuSanbanSanbanGai Gai
Shopping
Shopping
CenterCenter
Umeda
CenterCenter
HankyuHankyuTerminal
Terminal
Bldg. Bldg.Umeda
Bldg. Bldg.

Umed

JR Osaka
JR Osaka
StationStation

106.0106.0

KitanoKitano
HankyuHankyuBldg. Bldg.

Nishi Nishi
Kita Kita
HankyuHankyuNU chayamachi
NU chayamachi
PLUS PLUS
HankyuHankyuBldg. Bldg.
South South
Bldg. Bldg.
Bldg. Bldg.
NU chayamachi
NU chayamachi
南館Hotel
南館
HankyuHotel Hankyu Hankyu Hankyu
Osaka- OsakaRESPIRERESPIREOSAKAOSAKA Umeda Umeda
Sta.
Sta.
Hotel newHotel newHankyuHankyuOsakaOsakaa Sta.

(Toyonaka,
OsakaOsaka
Pref.) Pref.)(Takarazuka,
HyogoHyogo
Pref.) Pref.)7 Senri-Chuo
7 Senri-Chuo(Toyonaka,
14 Takarazuka
14 Takarazuka(Takarazuka,

North North
Bldg. Bldg.

a Sta.

(Tennoji-ku,(Tennoji-ku,
Osaka)Osaka)
16

a Sta.

Tennoji
9 Tennoji-Umed(Amagasaki,(Amagasaki,
Hyogo Pref.)Hyogo Pref.)(Kobe, Hyogo(Kobe,Pref.)Hyogo Pref.)Kobe-Sannomiya/Sannomiya
15 Tsukaguchi
15 Tsukaguchi
8 Kobe-Sannomiya/Sannomiya(Nishinomiya,
Hyogo Hyogo
Pref.) Pref.)2 Shukugawa
2 Shukugawa(Nishinomiya,
9

HankyuHankyuCorporation
Corporation
Head Office
Head Office
Building
Building

Of theOftop
the20
toplocations,
20 locations,
all except
all except
threethree(9th-ranked(9th-ranked
TennojiTennoji
Station,Station,13th-ranked
13th-ranked
Yodoyabashi
Yodoyabashi
StationStationand 18th-ranked
and 18th-ranked
Hommachi
Hommachi
Station)Station)are line-side
are line-sideof Groupof Group
stations
stations

Higashi

Location
Location

Metro

Location
LocationRankingRanking
StationStation

Umed

Location
LocationRankingRanking
StationStation(Nishinomiya,(Nishinomiya,
Hyogo Pref.)Hyogo Pref.)1 Nishinomiya-kitaguchi
1 Nishinomiya-kitaguchi
8（%）（%）
107.0107.0

Approx.
Approx.
850 850

Osaka-Namba
Osaka-Namba

Source:Investigation
Investigation
conducted
conducted
by MAJOR
by MAJOR
7 (Sumitomo
7 (Sumitomo
RealtyRealty&&
SurveySurveyof Mostof MostDesirable
Desirable
Towns
Towns
to Liveto Livein inSource:
Development
Development
and sevenand sevenother othercompanies)
companies)(September(September
30, 2020)
30, 2020)(Kansai(Kansairegion)region)StationStationRankingRanking

5
Approx.
Approx.
11,02011,020HanshinHanshin
Namba
Namba
Line Line

HanshinHanshin
MainMainLine Line

Nishidai
NishidaiJuso Juso

Umeda
Umeda

Line Line

Kobe-Sannomiya
Kobe-Sannomiya

Shin-ShinOsaka
Osaka

Osaka-Umeda
Osaka-Umeda

HanshinHanshin

Mukogawadanchi-Mae
Mukogawadanchi-Mae
Mukogawa
Mukogawa

Motomachi
Motomachi

HankyuHankyuSenriSenriLine Line

Kita-Osaka Kyuko

HankyuHankyuImazu
Imazu
Line Line

Senri-Chuo
Senri-Chuo
Ishibashi
Ishibashi
handai-mae
handai-mae
Kita-Osaka Kyuko

Takarazuka
Takarazuka
Grand
Grand
Theater
Theater

Osaka
Osaka
International
International
Airport
Airport(Itami(Itami
Airport)
Airport)Singapore
Singapore

Key Keyareas
areas
in thein realthe real
estateestateand andleasingleasingbusinesses
businesses
in thein Tokyo
the Tokyo
metropolitan
metropolitan
areaarea

Shinjuku-ku
Shinjuku-ku
Chiyoda-ku
Chiyoda-ku

Minoh
Minoh

Kawanishi-noseguchi
Kawanishi-noseguchi

Shinkaichi
Shinkaichi

Malaysia
Malaysia

HanshinHanshinLine Line
43.9
43.9
km km
KobeKobe
Rapid
Rapid 5.05.0
km km
TransitTransitRailway
RailwayLine LineThe Philippines
The Philippines

ThailandThailand

VietnamVietnamHankyuHankyu
Kyoto
Kyoto
Line Line

Myokenguchi
Myokenguchi

Nose Electric
RailwayNose Electric
Railway

48.9
48.9
km km

KatsuraKatsuraHankyuHankyuArashiyama
Arashiyama
Line Line

Kyoto
Kyoto
Prefecture
Prefecture(Takarazuka
Line, MinohLine, MinohLine) Line)(Kobe Line,
(Kobe
Imazu
Line,Line,
Imazu
Itami
Line,Line,
Itami
Koyo
Line,Line)
Koyo Line) (Takarazuka

143.6
143.6
km km

Asia
Asia

Kyoto-kawaramachi
Kyoto-kawaramachi

ProfileHankyuHankyuCorporation
CorporationN

Our Ourinvestment
investment
properties
properties
Hankyu Hanshin Holdings Integrated Report 20206

Profile

Financial Highlights

Non-Financial Highlights

Key Financial Indicators (Graphs)
Revenues from operations

Impact of COVID-19‒¥22.0 billion(¥ billion)
1,000
800

746.8

736.8

791.4

760.3

Environmental Factors

Operating income andoperating income margin(¥ billion)
120

762.7

110.3

600
400

105.2

21

114.9
14.5

14.8

14.1

95.2
14

12.5

13.8

7

200

2017

2018

2019

2020

(FY)

2016
Operating income

2017

2018

2019

2020

634,645

613,617

302,008

597,100

303,317

296,828

2016

2017

Urban transportation2018

Hotels

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

150

166.5

159.3

171.4

160.8

154.1

2020

9

54.9

2.28
2

4.6

4.3

2.47

2.40
4.4

2016

2

0

0
2016

Total assets

2017

2018

2019

(¥ billion)
1,000

916.6

500

1

2020

2017

2018

ROA (right axis)

899.5

7.6

2019

6.1

2020

(FY)

ROE (right axis)

5.6

5.4

5.1

1.3

1.1

1.0

1.0

2016

2017

D/E ratio (right axis)(¥ billion)
25

100
50

46.0

0
-50

‑78.8

-100

30.8

‑84.8

126.0

20
15

9.9

2019

(Times)10

2018

Net cash provided by operating activities

20195‑128.5
2020

5.9
5

1.0

0

2020

(FY)

20
15

Net cash used in investing activities

Free cash flow

10.0

9.1

8.7

40
4.3 (Upper limit)
30

25

25

9.8

30

30

8.8

8.8

9.9

9.9

2016

2017

2018

2019

30

20

12.2

10

2020

(FY)

0

Acquired treasury stock

Total annual dividend

Total return ratio (right axis)
Note: On the effective date of August 1, 2016, stock shares were consolidated on a
five-to-one basis. Annual dividends per share of or before 2015 are values thatfactor in the consolidation of shares.

7

Hankyu Hanshin Holdings Integrated Report 2020

3.3

2.8

0

13.0
0.6
4.4

12.7

2017

1.4
5.8

3.7

Hankyu Hanshin Hankyu Hanshin

2016

13.1

0.9

Hankyu Hanshin

Safety-related capital investment

4.7

4.3

4.7

Percentage of women among new hires (right axis)
Hankyu Hanshin Holdings, Inc. 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 2020, the percentage of women in management
positions was 4.5%, and females made up 47.8% of new hires.

2018

14.1

2.3

14.4

4.5
Hankyu Hanshin

2019

80

40

0.7

4.8
Hankyu Hanshin

2020(Groups)
180
94

91

81

111

97

102

94

92

129

139

120

60

0
(FY)

Other capital investment

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 operations accordingly. In fiscal 2020, such investments totaled ¥14.4
billion at Hankyu Corporation and ¥4.8 billion at Hanshin Electric Railway.
These investments were primarily used for the construction of new trains andrenovation of existing ones, as well as track elevation, seismic reinforcement ofelevated tracks, and constructions to further improve our stations.

Governance Factors

0(FY)

Percentage of women in management positions

International transportation

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

（%）
50

10

‑5.4
‑88.4

-150
2017

123.1

47.5

‑116.2
2016

2018

903.5

Interest-bearing debt/EBITDA ratio (right axis)(¥ billion)
150

135.8

(FY)

2020

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

10Interest-bearing debt

Returns to shareholders
115.6

877.1

5.5

Cash flows
124.8

866.8

0

(FY)

*ROA = Ordinary income/Average total assets at beginning and end of the period

2019

0

4
3.6

0
2018

0

2.49

4.5

0

(Activities)
120

8.2

Interest-bearing debt, D/E ratio, and interest-bearing debt/EBITDA ratio

2.35

0

20
10

(FY)

In fiscal 2020, CO2 emissions were down 16% year on year, to 434,292 t-CO2.
Furthermore, energy consumption on a crude oil conversion basis decreased
gradually as a result of efforts by the Group companies to reduce energy
consumption. These efforts include the introduction of LED lighting in railway
stations, commercial facilities, hotels and other facilities as well as theintroduction of an increased number of new rolling stock with better energy
efficiency than the existing models.

5

（%）
6

2

4.5

(¥ billion)25

9.4

Net income attributable to owners of the parent(¥ trillion)
3

4.0

4

200,000

4.5

3

(FY)

Total assets and ROA

Travel

30

6

20

0
2019

65.5

2020

40

Social contribution activities: Hankyu Hanshin Dreams
and Communities of the Future Project

50

2018

66.4

Other

2019

44.0

8

（%）
50

47.8

45.3

Capital investment in railway operations

40

2017

10.3

282,651

400,000(Target: Hankyu Hanshin Holdings, Inc. and its six core companies)

（%）
10

6

100

2016

71.3

70.0

60

（%）
12

288,747434,292

Entertainment

Real estate

Information and communication technology(¥ billion)
200

516,399

600,000

0(FY)

Operating income margin (right axis)（kl）
800,000

200,000

0

0
2016

600,000
400,000

400（t-CO2）800,000

0
2016

2017

2018

2019

2020

(FY)

Number of social contribution activities conducted by the Group companies
Number of collaborating civic groups (right axis)
In accordance with a basic policy of creating towns and cities that people will
truly want to live in, the Group companies are engaged in roughly 100 social
contribution activities every year to realize the policy. As a partner to make better
communities, the Group companies also support civic groups in their railway
line-side areas, in terms of financing and advertisement, and make joint efforts
with the civic groups. A survey conducted in fiscal 2020 targeting line-side cities
and towns found the more that customers recognize our projects and SDGs
trains (p. 55), the more they have a positive image of our Group and a desire tolive in our line-side areas.

Percentage of outside directors

Rate of attendance of outside officers at meetings of the Board of
Directors and the Board of Company Auditors

（%）
60

（%）
100
45.5

40

20

Profile80104.1

Impact of COVID-19‒¥15.4 billion（%）

Social Factors

Percentage of women in management positions and women among new hires

CO2 emissions volumes and energy consumption on crude
oil-conversion basis

97.2
90.0

100.0

100.0

100.0

97.2

96.0

100.0

83.3

80.0

85.0

60

33.3
22.2

80

96.7

22.2

97.0
96.7
92.9

40

14.3

20
0

0
2016

2017

2018

2019

2020

(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 (including 2 females), bringing the percentage of outside
directors to 45.5%.

2016

2017

2018

Outside directors, Board of Directors' meetings

2019

2020

(FY)

Outside Auditors, Board of Directors' meetings

Outside Auditors, the Board of Company Auditors
Note: Until fiscal 2020, the Board of Company Auditors were held as a company with Board of Company Auditors.

With the approval obtained at the Ordinary General Meeting of Shareholders held in June 2020, Hankyu
Hanshin Holdings became a company with an audit and 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 exclusive staff who provide information and liaise with relevant in-house
departments. Moreover, the Corporate Governance Committee, mainly provides information about the group'sbusinesses, finance, and organization, and the office of the Board of Directors sends out materials relating tomotions to be tabled at board meetings, in principle around seven days before the meeting date.
Hankyu Hanshin Holdings Integrated Report 20208

Messages from the Top Management

Message from the Chairman

current term we have been working hard to prevent the virus
from spreading to any Group worksite, and continue or restart
our business activities as we move toward business recovery.

We Will Continue to Enhance Our Corporate
Governance

COVID-19 is forcing extremely rapid evolution in personal
In line with the aforementioned ESG efforts, the Company will

Going forward, these social changes will also impact the Group's

undertake to further bolster its robust corporate governance.

Kazuo Sumi

existing business models. We will anticipate these changes as

To this end, we became a company with an Audit & Supervisory

Chairman and Representative Director,
Group Chief Executive Officer

we continue our efforts to achieve medium- to long-term growthCommittee in June 2020, and reduced the number of company

and enhance corporate value.

officers by three, to a total of 11, five of whom are independent

Messages from the Top Management

and business lifestyles, and this is impacting society as a whole.

directors, including two women. This increased the proportionof independent officers on our board. Our independent directors

In Line with Our Sustainability Declaration, We
Will Further Accelerate the Group's ESG Efforts

play leading roles in finance, the academy, and legal circles, andthe extensive expertise they bring will encourage more active
discussion on the Board of Directors and in other settings. This
will enhance the transparency of our management and further

Over its history, which spans more than a century since its

strengthen the supervision and oversight function.

founding, the Company has used its railway operations as abase to extend into a wide range of businesses, from residential
and commercial facility development to many enterprises
offering compelling entertainment, such as the Hanshin Tigers
baseball team and the Takarazuka Revue. Through thesebusinesses, we have contributed to the creation of desirable
urban environments and offered new, desirable lifestyles. As

We Will Contribute to the Further
Development of the Kansai Area, and Work
to Realize a Society that Promotes the Growthand Dreams of the Next Generation

our Group mission, we seek to realize our Group Management
Philosophy by delivering "Safety and Comfort" and "Dreams andExcitement," to create satisfaction among our customers andcontribute to society. With our eyes on the future, we will strive
to achieve sustainable growth, and work diligently with respect
to the ESG (Environmental, Social, and Governance) goals thatare a prerequisite for that growth.
In today's society, we face various challenges such as climatechange, enhancing levels of safety and security, responding todiversifying standards of value and the accelerating pace oftechnological development. Achievement of the Sustainable

We will strive to enhance our corporate value over the
medium to long term, and contribute to the realizationof a sustainable society.

Development Goals (SDGs) set forth by the United Nations
by the target year 2030 will require private enterprise to playa progressively expanding role, and the public is focusing
increasing attention on corporate efforts in this direction.
Consequently, in May 2020, we issued the Hankyu Hanshin
Holdings Group Sustainability Declaration. Going forward,
based on this declaration, we will accelerate the Group's ESGrelated efforts, reinforce relationships of trust with stakeholders,

Allow me first to convey my sincere condolences for those who have passed away due to COVID-19, and express my sympathy tothose who have contracted the virus. I would also like to express my heartfelt gratitude to all those working to prevent the spread of
COVID-19, including professionals working on the front line of medical care.

including customers and local communities, and work toaddress social challenges through our business activities. We
are confident that these efforts will enhance our corporate value
as a group over the medium to long term and help realize asustainable society.

The Group Will Continue to Push Forward as
One to Enhance Corporate Value

The next world exposition, Expo 2025 Osaka, Kansai, is slated
to be held in the Kansai area, where many of the Group'sbusinesses are located. The theme of the expo is "Designing
Future Society for Our Lives," with the aim of contributing
to achievement of the UN's SDGs. In addition, collaboration
between industry and universities in the field of medicine isunder way, and creation of new industries and neighborhoods
that are comfortable to live in is in progress.
At the same time, the Group is currently pushing forwardwith large-scale projects in the Osaka-Umeda area, the Group's
strategic base, which will add significant attractiveness to thearea. They include the Umeda 1-1 Project and the Umekita
Phase II Development Project. These efforts will enhance the
Osaka-Umeda area's potential, promote sustainable growth for
the Group, and synergize with a wide range of other efforts in
the Kansai region, contributing to its further overall development.
COVID-19 has made projections extremely difficult. Nevertheless,the Group will act as one to address social challenges independently,
overcome this difficult situation, and contribute to the realizationof a society where everyone can experience abundance and joy,
and where the next generation can grow as they pursue their
dreams.

Vision for 2025. As a concrete action plan to fulfill this LongTerm Management Vision, we announced a Medium-Term
Management Plan extending over the period from fiscal 2019
to 2022, and to date we have steadily implemented measures

The Hankyu Hanshin Holdings Group's aim is to achieve

9

based on the Plan.

sustainable growth in a society that is undergoing and will

However, since the fourth quarter of fiscal 2020, many of ourcontinue to undergo change. In 2017, we announced thebusinesses, such as our Urban Transportation business, were

Hankyu Hanshin Holdings Group Long-Term Management

impacted significantly by COVID-19. Consequently, during theHankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202010

Messages from the Top Management

Message from the President

and acquire treasury shares. As planned, the full-year dividend

term. A maximum of ¥4.3 billion was allocated for acquisition of

payout for fiscal 2020 was set at ¥50 per share, an increase

treasury shares.

of ¥10, with ¥25 paid at mid-year and ¥25 at the end of the

FY2020 results

FY2019 results

YoY¥762.7 billion¥791.4 billion–¥28.8 billion–3.6％

Operating income¥95.2 billion¥114.9 billion–¥19.8 billion–17.2％

Ordinary income¥88.8 billion¥110.5 billion–¥21.7 billion–19.7％Net income attributable to ownersof the parent¥54.9 billion¥65.5 billion–¥10.6 billion–16.2％

Messages from the Top Management

Revenues from operations

Takehiro Sugiyama
President and Representative Director

Fiscal 2021 Outlook and Social and Economic
Recovery Scenario
As we enter fiscal 2021, the Group's operating environment
will see a continuing impact from COVID-19 on many of
its businesses, and first quarter results are expected to besignificantly below the corresponding term a year earlier.
The outlook for fiscal 2021 as a whole is likely to depend
significantly on the duration and extent of influence of COVID-19
during this fiscal year. To be more specific, most of the Group's

Phase 1
During phase 1, movement within Japan will gradually resume
over short distances close to home, while social distancing willease progressively. Group businesses that are relatively closely
related to everyday activities—Urban Transportation, Real
Estate, Entertainment and so on—will be the first to recover.
Once movement within distances close to home becomes
established, travel over longer distances will gradually begin,and we believe that our Travel and Hotels businesses will, atleast to an extent, begin to recover as well.

businesses will be greatly affected by recovery from voluntary
travel curtailment and the degree of social distancing as well as

The Hankyu Hanshin Holdings Group will realize
sustainable growth as it responds to the new era

recovery in the global movement of people (including inboundvisitors). It is currently very difficult to forecast the direction ourbusiness will take, and to calculate the impact of COVID-19 inany reasonable way. As such, our outlook for the full fiscal year
must remain pending.
In calculating our dividend payout for fiscal 2021, we will

Phase 2Phase 2 will involve movement of people, not only within Japan,
but all over the world. During this phase, we will see inboundvisitors to Japan and Japanese traveling abroad for tourism.
People's movements will become globalized, and results for
Travel and Hotels businesses will recover correspondingly.

maintain our policy of stable dividend payment (as we believethat the effects of the state of emergency in effect during April
and May 2020 will not require us to modify this policy). As such,the full-year dividend payout for fiscal 2021 will be ¥50 per
share, equal to that in fiscal 2020.

Fiscal 2020 Results

growth and adjustments to ensure a continuing healthy balance
sheet.

the world as a whole: the COVID-19 pandemic. However, we

To realize the Hankyu Hanshin Holdings Group Long-Term

However, a range of factors, principally the impact ofbelieve that the progressive recovery of social and economic

Management Vision for 2025, we formulated a Medium-Term

COVID-19, had a significant influence during the fourth quarter.

activities with a significant effect on the Group will take place inManagement Plan for the first four years (fiscal 2019–2022),

As shown in the chart on the next page, fiscal 2020 revenue

three major phases.

during which time we have been promoting measures in linefrom operations, operating income, ordinary income, and net

with our Long-Term Management Vision.

income attributable to owners of the parent, were all lower

As a result, the Group's results were largely in line with the

11

As stated, our immediate challenge is the same faced bycompared to the previous term.

Plan. When we announced our results for the third quarter of

The Hankyu Hanshin Holdings Group regards the total returnfiscal 2020, we anticipated that operating income would reachratio as a metric of shareholder return. Our basic policy is tothe plan goal of ¥107 billion. We also made investments for

set this ratio at 30%, and endeavor to pay dividends reliably

Hankyu Hanshin Holdings Integrated Report 2020

Phase 3In phase 3, domestic and international economic activity will
recover to a significant degree, and the influence of COVID-19
will have largely abated. However, due to the outbreak of
the virus, the expansion of e-commerce, remote work, andother progressive changes in lifestyles and business styles
have emerged, and we believe that even if the influence of
COVID-19 abates, social and economic activity will certainly not
return to what it was prior to the outbreak of the coronavirus.
Consequently, phase 3 will call for responses to new social andeconomic activity.

Hankyu Hanshin Holdings Integrated Report 202012

Messages from the Top Management

The foregoing represents the Group's view of how

Umeda Hankyu Building and GRAND FRONT OSAKA, thebe important, but going forward, it is also essential that weOver more than a century since we entered the railway

social and economic activity is likely to recover. As of the

supply of office space with advanced functions has increased

more actively offer web-based products and services thatbusiness, the Group has maintained a flexible view that looks

end of September 2020, we believe that Japan has fully

substantially, and Umeda has gained additional stature as anmeet customer needs.

to the future and is not bound by precedent. Based on thisentered into phase 1, but that a certain amount of time

office district.

In response, the Group has embarked on offering a wideview, we have offered products and services that meet the

Now the Group, as noted, is pushing forward strongly withrange of web-based services to meet customer needs, suchneeds of society and our customers, and numerous times,

outlook, we expect that our results for fiscal 2021 will be

the Umeda 1-1 Project, which can be viewed as a symbol ofas paid live streaming of Takarazuka Review performances,

we have overcome the challenges of wrenching change.

correspondingly impacted. As such, the Group is striving

Hankyu and Hanshin management integration. The project is

condominium tours, and content that enables customers to

Today, as we face another such challenge, we willassiduously to reduce costs and minimize nonessential

set for overall completion in Spring 2022, and will mark theexperience the pleasures of travel from the comfort of home.

persevere in deploying products and services that areinvestment, so as to promote recovery in both profit andlaunch of Osaka Umeda Twin Towers South. In conjunction

In the future, in-person and remote presence will coexist

appropriate for the new era, and by doing so, contribute to

cash flow.

with the Umeda Hankyu Building, which will be renamed

in society than ever before. To maintain and strengthen therealizing continued sustainable growth for the entire Hankyu

Osaka Umeda Twin Towers North, we are confident thesecompetitiveness of each of the Group's businesses in thisHanshin Holdings Group. We thank you for your continuous

tower buildings will, as an Osaka landmark, contribute toenvironment, we will seek to continually monitor and identify

support.

enhancing the overall value of the Osaka-Umeda area.

evolving customer needs, so that we can offer appropriate

The Basic Direction of the Long-Term
Management Vision Will Not Change

Furthermore, at the Umekita Phase II Development Project,targeted for advance opening in 2024, we are working to

Messages from the Top Management

will be required before phase 2 can begin. Based on that

product content and services in both the in-person andonline society.

create a neighborhood that will lead Japan and Asia. We
plan to introduce internationally competitive, advanced

The Group's Long-Term Management Vision for 2025 was

urban functions and core functions in line with the project's

formulated to achieve sustainable growth, even amid

concept of fusing greenery and innovation, and in particular,

ongoing changes in society. As noted, lifestyles and businessto enhance the area's international competitiveness, we

styles are changing progressively. The Long-Term Vision inare considering numerous measures to enable wide-

fact anticipates that these changes will take place inevitably,

ranging activity by businesspersons, including non-Japanese.

and in that sense, the direction the Group must take isSpecifically, in addition to MICE facilities, we will establish

fundamentally unchanged.

innovation and other facilities to encourage the creation of

However, we believe that because of COVID-19, thesechanges will accelerate. Going forward, we will monitor

new industries. We will also construct new hotels in three
categories to meet the demand for accommodations.

changing social conditions and trends closely to update

In these ways, we will continue our efforts to enrich

the content and other aspects of specific measures to be

Osaka-Umeda's attractiveness and further enhance its

implemented under the Long-Term Vision, and we believeinternational competitiveness, so that more people will want

we must promote efforts to realize the Vision even more

to visit this area of Osaka.

rapidly than previously.
With respect to minimizing nonessential investment, evenwith the impact of the pandemic, there will be no change to
the Group's aim of sustainable medium- to long-term growth.
Large projects now in progress, such as the Umeda 1-1
Project and the reconstruction of the Kobe Hankyu Building,will move forward steadily and as planned. Moreover, if
attractive opportunities, such as mergers and acquisitions orreal estate deals, arise due to prevailing market conditions,
we will of course consider them carefully, continuing ourpolicy of emphasizing growth investments in a forwardlooking manner.

Toward a New Era: Discerning the Changing
Needs of Society and Customers
In closing, I would like to touch on some of our efforts
toward the coming era.
To some extent, the progressive changes now taking placein lifestyles and business styles are being driven by new"contactless" needs as a result of the spread of COVID-19.
At the same time, progress in digital technology is driving
expanding demand for online services, and we believe thatoffering such services will become increasingly important.

Making Osaka-Umeda an InternationallyCompetitive Neighborhood

Until now, the Group has demonstrated its competitivenessin offering products and services to customers in a wide
range of in-person settings, including transportation; shoppingand dining in shopping centers and other locations; leisure13

The Osaka-Umeda area is the Group's strategic base andservices such as baseball games, staged entertainment, andhas flourished as a center of commercial culture in Osaka

travel; hotel accommodations and banquets, and more.

for centuries. Until recently there was relatively little office

Of course, honing these strengths and the value that canspace in the area, but with the Group's development of the

only be derived from in-person presence will continue toHankyu Hanshin Holdings Integrated Report 2020

Artist's impression of completed Umekita Phase II Development ProjectNote: Proposed as of May 2018, subject to change

Hankyu Hanshin Holdings Integrated Report 202014

Creating Real Value: Our Story
Urban Transportation

Growth Trajectory

Real EstateEntertainment

Information and Communication Technology

Sep. 2012
Total ﬂoor space: Approx. 278,000 m(Incl. Gate Bldg. and annex)
Building details: 4 ﬂoors above ground(partial 5F)
2

Growth Post Integration

Total ﬂoor space: Approx. 254,000 m2(Oﬃce space [incl. Sky Lobby, etc.]: 103,000 m2)
Building details: 41 ﬂoors above ground; 2 ﬂoors
below ground (Oﬃce space: 25 ﬂoors [17F‒41F])

Nov. 2008

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

International Transportation
HotelsMay 2010

Opening of Hankyu Nishinomiya Gardens

Opening of Umeda Hankyu Building Oﬃce Tower

Commencement of S-POINT* service

Mar. 2016

Nov. 2007

Total ﬂoor space: Approx. 254,000 m2(Department store: 151,000 m2 [incl.
concourse])
Building details: 41 ﬂoors above
ground; 2 ﬂoors below ground(Department store: 15 ﬂoors [B2F‒13F])

Sep. 2009

Opening of Umeda Hankyu Building(Hankyu Department Store Umeda
Main Store, Phase I Building)Opening of remm
Hibiya(First in a series ofremm-branded hotels)Mar. 2009

Apr. 2013

Total ﬂoor space: Approx. 38,500 m2(Seating area: 22,600 m2; Field:
13,000 m2; Other: 2,900 m2)
Capacity: 47,466

1913

Hankyu 1907

1910

1907

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

Hanshin 1899

1899

Establishment of Settsu
Electric Railway(currently Hanshin
Electric Railway)

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

1920

Hankyu Hanshin Holdings Integrated Report 2020

1962

Completion of New
Hankyu Buildingof Umeda Hankyu Building (Beginning
1929 Openingof operations of Hankyu Department Store,

Opening of
Kita-Osaka Electric
Railway(Juso‒Toyotsu)

1926

Opening of
Takarazuka
Hotel

1938

Opening of Dai-ichi Hotel(currently Dai-ichi Hotel Tokyo)

1969

Opening of Hankyu Sanbangai

1964 Opening of Hotel New Hankyu Osaka

Asia s ﬁrst railway terminal department store)

agency of Hankyu Corporation
1948 Airline
launched in Japan's ﬁrst agency agreementwith Pan American Airways

Express International (currently
1960 Hankyu
Hankyu Travel International) wasestablished independently of Hankyu
Corporation

merger with Hankyu Travel
1962 Absorption-type
International (predominantly involved in thedomestic travel business)

Opening of new Hankyu Umeda Station as one of
the largest private railway terminals in Japan

1973 Changing of company name to Hankyu Corporation
1924

Opening of Dempo Line(currently Hanshin Namba
Line)(Daimotsu‒Chidoribashi)

1939

Beginning of operations ofMain Line Osaka-ekimae
underground extension(Relocation of Umeda
Station)1941

Completion of Umeda Hanshin
Building Phase I construction(Renamed Dai Hanshin Building
in 1961, and the whole building
completed in March 1963)

1948

Airline agency department of Hanshin
Electric Railway launched

1927 Launch of land and buildings sales business

1909

Completion of 30 rental houses infront of Nishinomiya Station (Launch ofland and buildings leasing business)

Total ﬂoor space: Approx. 260,000 m2(Phase I: 76,000 m2)
Building details: 38 ﬂoors above ground;
3 ﬂoors below ground (Phase I: 13 ﬂoors
above ground; 3 ﬂoors below ground)©Takarazuka Revue Company

1924 Completion of Takarazuka Grand Theater

Opening of Kobe
Line (Umeda‒Kobe)
and Itami Line
(Tsukaguchi‒Itami)

1905

Beginning ofoperations
linking Kobe
(Sannomiya) andouter Osaka(Deiribashi)

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

Formation of Takarazuka Girls Revue(currently Takarazuka Revue Company)

1921

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])

2014

1924

Opening of Koshien Stadium(Later renamed Hanshin Koshien
Stadium)

1935

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

1967 Opening of Hotel Hanshin

Oct. 2006
Establishment of Hankyu Hanshin Holdings, Inc.

Start of sales of Ikeda
Muromachi Residential
Land Plots

Announcement of the Hankyu Hanshin
Holdings Group's Long-Term Management
Vision for 2025

Apr. 2018

Completion of the renovations ofHanshin Koshien Stadium

Opening of GRAND FRONT OSAKA

1910

May 2017

Mar. 2010

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

Growth Pre Integration*A loyalty points system operated intandem with H2O Retailing Group for
customers in the Kansai area

Creating Real Value: Our Story

Hankyu Hanshin Holdings 2006

Opening of a logistics center inIndonesia as a joint project of theReal Estate and the International
Transportation businesses

Operating kilometers: 10.1 km(Amagasaki‒Osaka-Namba)
Nishikujo to Osaka-Namba: 3.8 km

15Apr. 2016

Hankyu Hanshin Holdings Integrated Report 202016

Creating Real Value: Our Story

Carefully
NurturedStrengths

1907

Pioneering the Railway Industry with a
Unique Business Model

Line, which opened in 1910. But Ichizo Kobayashi had a

Hankyu Corporation's development of residential neighborhoods

Transportation, Real Estate, Entertainment, Information andalong its routes, and its attraction and creation of tourist andCommunication Technology, Travel, International Transportation,

cultural facilities, in addition to its mainstay railway business hasand Hotels.

Express and Hankyu Hanshin Properties̶and approximately 100
group companies that span seven core businesses: Urbangrown the local resident population and ridership. Moreover, theToday, our operations are propelled by three "strengths" wecompany's urban development efforts, chiefly in the Umeda

have nurtured carefully since the very origins of our businesses:

precinct, has created a natural flow of people into the area.

high potential of areas served by our stations; community building

Meanwhile, Hanshin Electric Railway has been the bedrock of theability; and ownership of content with strong brand value.

Tigers baseball team.
Osaka Umeda Twin Towers South (scheduled for completion in spring 2022)
This project entails rebuilding two Hankyu-Hanshin buildings into a single complex tounderscore the integration of the two companies.

would also develop

By merging, Hankyu and Hanshin seek to harness the ample
synergies inherent in their various operations in an ongoing quest
to further enhance corporate value.

proved to be a

The merger resulted in the creation of the Hankyu Hanshin Holdings

Hankyu Hanshin
Holdings:

momentum. Thus, fromout-of-the-box thinking a
new business model wasborn, and it influenced
private sector railway
Ichizo Kobayashi upon the foundingof the railway business

1899

Japan's First High-Speed, Broad Gauge,
Intercity Electric Railway, Inspired by theLatest Overseas Insights
In 1899, some eight years prior to Hankyu's
inauguration, the Settsu Electric Railway (which would
later be renamed Hanshin Electric Railway) wasestablished with Shuzo Toyama (1842-1916) as its
inaugural president. In 1905, after lengthy preparations,the company began the first intercity electric railway
service, running between Sannomiya in Kobe andDeiribashi in Osaka.

Focusedon Progress

2006

Harnessing Synergies to Create
New Values
In October 2006, after having served the corridor between
Corporation and Hanshin Electric Railway integrated theirof the latest expertise frombusinesses, combining their strengths in a common strategic

overseas, bestrode the age

quest for sustained growth and progress. Joining forces as

as a pioneer of intercity

Hankyu Hanshin Holdings enabled the groups to pool theirelectric railway, and its

know-how, talent, and other assets in a cohesive team effort

constantly growing̶andacross various business domains, such as the Urban

ever swifter̶fleet thronged

Transportation and Real Estate Businesses, thus enhancing

with an increasing number

competitive ability throughout their portfolio and boosting
Shuzo Toyama, Hanshin Electric
Railway's first president

Travel International, and Hankyu Hotel Management (since

Our communitybuilding expertise
helps increase value.

renamed Hankyu Hanshin Hotels) as its four core companies.

01

03

We have a varietyof popular,
attractive content.

Offer new value

Today, the Hankyu Hanshin Holdings Group has grown to

Our communities arehubs for the movementof people and goods.

Ownership of content
with strong brand value

Shaping Routes Centered on Osaka Umeda
In the early days of Hankyu Corporation and Hanshin Electric Railway, the population
explosion that followed the rapid industrialization of the early 1900s caused adeterioration of the residential environment that subsequently led to increased demand
for more comfortable living conditions.

Osaka and Kobe faithfully for close to a century, Hankyu

Hanshin, an eager adopterof passengers.

02

Group, with Hankyu Corporation, Hanshin Electric Railway, Hankyu

generated considerable

wide.

Community
building ability

Creating Real Value: Our Storyalong the routes. Thismasterstroke andOur communities arehubs for the movementof people and goods.

Carefully nurtured
strengths

The Three Strengths that Underpin
Our Seven Core Businesses

residential neighborhoods

business proprietors far and01

has invested in its leisure business, headlined by the iconic Hanshin

radical idea: his company would not simply run trains; it

operators and otherHigh potential of areas
served by our stations

worked tirelessly to develop its routes, centered in Umeda, andRailway Company, founded in 1907 by Ichizo
between Umeda and Takarazuka on the Takarazuka

incorporate six core companies̶now including Hankyu Hanshin

local transportation infrastructure for more than a century, has

Hankyu Corporation began as the Minoh-Arima Electric
Kobayashi (1873-1957). The inaugural train ran

Sharing Value Assets along Routes
Raises Potential for Business Expansion

corporate value.

Leading the Kansai
Region with

High-Potential
Areas Served
by Our Stations

Before the inauguration of his railway, Ichizo Kobayashi, founder of Hankyu
Corporation, walked along the planned route between Ikeda and Umeda. Seeing theidyllic landscape, Kobayashi thought it would make the ideal residential neighborhood.
With images in his mind of the cramped housing environment of Osaka City causedby the population increase of the time,
he alit on the concept of managing
residential land alongside his railway
routes

as

a

means

of

boosting

transportation demand. This is the origin
of

the

model

that

underpinstheprivately-owned railway business: build
new residential neighborhoods in thesuburbs and provide a railway to carry
residents to and from home.
Meanwhile, Hanshin Electric Railway
published("Try

Living in the Suburbs") in 1908 to promote
the benefits of neighborhoods along
Hanshin's routes. The company's focus
on the communities along its routes

A Hankyu train crosses the Inagawa Bridge (circa 1910)

remains a core part of its stance today.

17

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202018

Creating Real Value: Our Story

Expanding Routes throughout the Greater
Kyoto-Osaka-Kobe Region

Leveraging Community-Building Know-How for Further Growth
Community-building initiatives have progressed and deepened even further
since the two groups' integration, including the opening of Hankyu Nishinomiya

Hankyu Corporation sought to expand its network to areas beyond Minoh andGardens, the renovation of Hanshin Koshien Stadium, the completion of the

Takarazuka. In 1920, it launched the Kobe Line between Umeda and Kobe, andUmeda Hankyu Building, and the opening of GRAND FRONT OSAKA.

the Itami Line between Tsukaguchi and Itami. In 1931, the old Shin Keihan LineAs illustrated by the development of Osaka Umeda Twin Towers South

opened, connecting Osaka and Kyoto and further expanding the rail network.

(Umeda 1-1 Project), Phase I of which is already complete, and the Osaka

Hanshin Electric Railway, too, opened a new line in 1924: the Dempo Line

Station North District (Umekita) Phase II Development, we will continue tobetween Daimotsu and Dempo. In the 1930s, tunneling enabled Hanshin toutilize our community-building abilities to provide new value in a broad scale,boost its network, such as by extending its lines from Osaka to central Kobe.

including our routes, which are centered on the Osaka Umeda area, and theToday, that network expansion continues. In 2009, the Hanshin Namba Line

Tokyo metropolitan area, and link this to the group's growth.

opened, thus completing a network spanning Kobe, Osaka, and Nara. Elsewhere,

PILOT Hankyu Hanshin
Green Building

Hankyu Nishinomiya Gardens

the Hankyu Hanshin Holdings Group is working to further enhance our network,
for instance by extending the Kita-Osaka Kyuko Railway and building the
Naniwasuji Connection Line.
A special train commemorates 10 years of the Hanshin Namba Line in 2019

Creating New
Value with Our
Community

Building
Ability

Predicting Demand and Delivering Value

03

railway business model. Prior to the inauguration of his railways, he bought some 825,000
square meters of land along the routes. In 1910, the Ikeda Muromachi Residential Land Plots
were the company's first residential sales; they offered a high-grade living environment for
the time, including paved, tree-lined roads and street lighting, and suggested the latest
lifestyles amid the natural landscape of thesuburbs. Home sales were offered on credit̶aforerunnertodevelopments

today's
includedhomeloans.

suburbanFulfilling Dreams
and Offering
Excitement throughOur Content

revolutionary idea at the time in Japan̶and a
OtherleisureEntertainment that provides people with healthy and cultured living environments plays
an important role in the Hankyu Hanshin Holdings Group's creation of value.
The Takarazuka Revue began as a 20-girl choral

In developing residential neighborhoods and leisure facilities along railway routes to drive
demand for train transportation, Ichizo Kobayashi laid the foundation for the privately-owned

Winning Many Fans through Unique Cultures andEntertainment
Creating Real Value: Our Story

02

Our communitybuilding expertise
helps increase value.

We have a variety of
popular, attractive
content.

troupe putting on an operatic performance in atheater made by converting an indoor swimming
pool. The company, whose motto is "Modesty,
fairness, and grace," reached its centenary in
2014, and continues to be loved throughout
Japan and around the world.
The Hanshin Tigers were established in 1935
as the Osaka Baseball Club (Osaka Tigers). Since

Debut performance of Dom-Brako by
Takarazuka Girls' Revuethen, over a long, 85-year history, the club and its
home ground, Hanshin Koshien Stadium, havebeen supported by a broad range of fans.

facilities such as the Takarazuka Girls' Revue,
later to become the Takarazuka Revue Company,

An Osaka Tigers
posterand the completion of Takarazuka Grand
Theater, as well as Hankyu Department Store. In
this way, the company pursued a policy ofcommunity building along its routes.

Utilizing Content and Brand Strength to Develop
Diverse Businesses

First phase of the original Umeda Hankyu Building(completed in 1929)

The Hankyu Hanshin Holdings Group's Travel and International Transportation Businesses
began when Hankyu Corporation established a Pan American Airways agency in 1948. In

Providing New Value by Developing Thriving Local
Communities

1960, airline agency operations were spun off from Hankyu Corporation into a newcompany, Hankyu Express International. This later became Hankyu Travel International,
which handles the group's Travel Business today. The company later merged with Hanshin
Travel Service, which was spun off from Hanshin Electric Railway when Hankyu and Hanshin

Hankyu's and Hanshin's community building ability was proven in a variety of forms along

integrated, and today focuses its efforts on creating a variety of travel solutions to meettheir routes. Koshien Stadium (later Hanshin Koshien Stadium) opened in 1924, the Takarazuka

diverse needs. Its core offering is Trapics tours, which celebrated 30 years in 2019.

Hotel opened in 1926, and Hankyu Nishinomiya Stadium, home of the Hankyu Braves, opened

Meanwhile,

in 1937. Beginning in the 1960s, development of facilities progressed, mainly in Umeda,
including the New Hankyu Building, the Dai Hanshin Building, Hotel new Hankyu Osaka, andwhich

handlesthegroup's

International

global scale.

the new station was Hankyu Sanbangai, which was followed by the development of numerous

In addition, the Hankyu Hanshin Holdings Group has been involved in systems

office buildings and commercial facilities, including building complexes with direct access todevelopment and the cable TV business since the early days of IT in the 1980s, and havethe station such as the Hankyu Terminal Building and Hankyu Grand Building. Other

developed while responding to the changes of the times. Since fiscal 2020, our information

developments continued up to the 2000s, including the Chayamachi area and Nishi-Umeda

and communication technology business has sought to help the group grow by investingarea.

Hankyu Hanshin Holdings Integrated Report 2020

Express,

Air Cargo. These companies provide high-quality services and optimized logistics on amain feature of which was the relocation and expansion of Hankyu Umeda Station. Under

19

Hanshinthe international transportation operations of Hankyu Travel International, with Hanshin

Hotel Hanshin. In 1966 began the comprehensive development of the Umeda stations, theUmeda Hankyu Building

HankyuTransportation Business, was formed by the merger of Hankyu Express, which inherited

Top: Hanshin Koshien Stadium
Bottom: Takarazuka Revue (©Takarazuka Revue Company)

its efforts into the information services business, broadcasting and communications
business, and safety and education business.

Hankyu Hanshin Holdings Integrated Report 202020

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.

Improvement of Social Issues

Social Challenges and Changes
in External Environments
Increasingly serious
climate change(harmony with theenvironment)
Low birthrate, aging society,declining population(declining resident
population and working
population in communities
along our routes)
Faster ICT innovation

Impact of lifestyle changes
on our business model
Tight labor market, decline
in customer numbers

Management ResourcesHigh potential of areas served by our stations, Community building ability

Entertainment

p31

p33

Information andCommunication
Technology
p35Strategy 1

Umeda andline-side areas+
Stock businesses
Strategy 2

Tokyo metropolitan area
and overseas markets+
Stock businesses

p37

International
Transportation p39
HotelsStrategy 2
Construct a stablerevenue base in theTokyo metropolitan
area and overseas
markets.
Strategy 3

Strengthen
competitivenessof flow business

Strengthen
competitiveness bythoroughly pursuing
brand optimization anddifferentiation.

Strategy 4

Strategy 4

Strategy 3

TravelMake our railway theabsolute best among
the Kansai networks.

Group-wide
initiatives andnew business fields

p41

Make greater use of theGroup's collective
strength and develop
new business fields.

Ownership of content with strong brand value
Social and relationship capital: Services based on trust and brand strength
Real Estate
Number of condominium units sold in Japan: 1,516
Entertainment
Total attendance at Hanshin Tigers home games (2019 season): 3,091,000
Annual total attendance at Takarazuka Revue: 3,200,000 (2019)
TravelTotal travel billings ¥335.6 billion
International Transportation
Number of domestic bases: 52 (as of Sep. 1, 2020)
Number of overseas bases: 134 (as of Sep. 1, 2020)
Human capital: Diverse workforce with the courage to try new things
Consolidated group workforce: 22,800 (as of the end of FY2020)
Financial capital: Stable financial foundation
D/E ratio: 1.0
Bond rating: AA‒ (JCR)
Interest-bearing debt/EBITDA: 5.9
A+ (R&I)

Sustainability
Declaration
p43

Group Management
Philosophy
p1

Three core elements underlie our
pursuit of sustainable growth(1) General principles (sustainability vision)(2) Priority issues (materiality matrix) andthe policies for each one(3) Project themes, non-financial KPIs

Enhance economic value

Manufactured capital: Steadfast foundation of railway routes anddevelopment capabilities
Urban Transportation
Operating kilometers: Hankyu Corporation 143.6km*
Hanshin Electric Railway 48.9km*
Real Estate
Leasable area: Approx. 1,930,000 m2 (as of the end of FY2020)
Information and Communication Technology
Number of households subscribing to cable TV: 648,000
HotelsTotal number of guestrooms: 12,470 (as of Sep. 1, 2020)

Real Estate

Strategy 1

Enhance social value

Expanded business
opportunities throughout
Japan and around theworld generated byincreasingly multicultural
symbiotic societies(From FY2019 to FY2022)

p23

Opportunities

Expanded demand for
new services generated
by lifestyle and businessstyle changes andtechnical innovation

Medium-Term
Management Plan

Sustainably
enhance
corporate
value

Customers
Communities

Employees

Contributing to asustainable society

Shareholders

Creating Real Value: Our Story

Urban Transportation
p29

Increased interest insafety and security

Requirements forstronger governanceHankyu Hanshin HoldingsGroup Long-Term
Management Vision for
2025
p23

Impact of infectious
diseases on our business
model

Expanded demand for
low carbon, circulartransport, services withsafety and security

Requirements fordiversity-conscious
management, better
employment practices,
health management

Values Provided to Stakeholders

Risks
Impact of extreme
weather on business

Increasingly multicultural
symbiotic societies(expansion of inboundtourism demand)

Decay of infrastructure

Hankyu Hanshin Holdings

Enhance daily life
(customer) value

Changes in lifestyles
and business styles(movement, consumer
behavior, lifestylebases, etc.)

Value Creation Strategy ofPartners

Create a future groundedin "Safety and Comfort,"
and a future colored by"Dreams and Excitement."
We commit ourselves to working
toward a sustainable future, one thatoffers a fulfilling, joyful life to all andinspires the next generation to
dream with hope.

Our value to society

NB: Figures are for FY2020 unless otherwise noted.
*Includes Tier 2 railway operators' lines.

21

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202022

Creating Real Value: Our Story

Summary of Long-Term Management Vision andMedium-Term Management Plan
Hankyu Hanshin Holdings Group Long-Term Management Vision for 2025

SloganEnhancing line-side areas
and expanding ﬁelds

Medium-Term Management Plan for Fulfillment of Long-Term Management Vision
Basic Way of Thinking about the Medium-Term Management Plan

Sustainably enhance corporate value

In 2018, we established the Medium-Term Management

strategies and distribute funds accordingly, while placing

Plan, covering the term from fiscal 2019 to fiscal 2022, as ourparticular emphasis on our ratio of interest-bearing debt toconcrete action plan to fulfill our Long-Term Management

EBITDA, to maintain a sound financial structure.
As COVID-19 has made it difficult to predict the impact of the

Vision.

Strategy❶

Stock businesses(Umeda and line-side areas)

Stock businesses(Tokyo metropolitan area
and overseas markets)

Construct a stable revenue basein the Tokyo metropolitan area
and overseas markets.

Strategy❸

Flow businesses

upcoming economic situation on our management fiscal 2022,

strategies of the Long-Term Management Vision. Financially,

we will revise our Medium-Term Management Plan as necessary

we will focus on growth investments in line with the four key

in light of our progress in achieving the plan's targets.

Strengthen competitivenessby thoroughly pursuing brand
optimization and diﬀerentiation.

Creating Real Value: Our Story

Make our railway the absolute
best among the Kansai networks.

Strategy❷

In this plan, we are promoting measures in line with the four

■ Four strategies in Medium-Term Management Plan (Based on Long-Term Management Vision)
Strategy❹Group-wide initiatives and new business ﬁelds

Make greater use of the Group' s collective strength and develop new business ﬁelds.

Strategy ❶Further strengthen stock businesses in Umeda andline-side areas

Enhancing the value of the Umeda area; Activating the main line-side areas; Improving thetraﬃc networks (infrastructures) with new railway lines; Satisfying the demand frominbound tourists.

Strategy ❷Summary of Long-Term Management Vision
In 2017, to promote our growth as a corporate Group even as

even in or around 2040, by which time our environment will besociety evolves toward the future, we established the Hankyu

affected significantly by changing population dynamics.

Hanshin Holdings Group Long-Term Management Vision for

By achieving such aims, we will maintain our top-level2025. The Vision encompasses four strategies under the slogan,

position among the major private railway companies, with all"Enhancing line-side areas and expanding fields," on the basis

metrics indicating profitability and financial soundness.

of two key business areas and models (stock businesses*1 andWe believe that COVID-19 will result in a significant

flow businesses*2). We will endeavor to enhance sustainableacceleration of the social change presumed in our Long-Term

corporate value through these strategies.

Management Vision, so we will pursue initiatives based on ourSpecifically, we will promote the implementation of the four

various strategies with a greater sense of urgency.

strategies of the Vision to become a corporate group capableof maintaining minimum operating income of ¥100 billion,

Accumulating stocks in the center of the Tokyo metropolitan area; Opening a new hotelin the Tokyo metropolitan area; Studying acquisition of overseas stocks (real properties).

Strategy ❸23

Hankyu Hanshin Holdings Integrated Report 2020

Strengthen competitiveness of ﬂow businesses

Expanding the scale of the condominium businesses including those overseas; Growing
the information services business; Increasing income from the travel business; Increasing
the volume of cargoes handled by the international transportation business.

Strategy ❹*1 Businesses that own or use stock such as property and other fixed assets (including the railway business, real estate leasing business, broadcast andcommunications business, and Hotels Business)*2 Businesses that, instead of owning large-scale stock, use business know-how, human resources, brand assets, and other intangible assets (including thereal estate sales business, sports business, stage business, information services business, travel business, international transportation business and otherbusinesses)

Accumulate stock in the Tokyo metropolitan area andoverseas markets

Make greater use of the Group's collective strength andventure into new business ﬁelds

Hankyu Hanshin Holdings Integrated Report 202024

Creating Real Value: Our Story

Project Progress

Total completion inspring 2022

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

Reconstruction of Kobe Hankyu East Bldg. and renewal of West Bldg.

We have carried out the comprehensive reconstruction ofThis plan is for the establishment, in an integrated way, of a

the Dai Hanshin Building and the Shin Hankyu Building since

station that provides improved transfer to the Kobe Municipal

October 2014. The first phase building was completed in April

Subway (Seishin-Yamate and Hokushin lines) and creates public

2018, and the Hanshin Department Store (Hanshin Umeda Main

space. The new building, which is scheduled for completion

Store) was partially opened in June.

in spring 2021, will contain a hotel, offices, and commercial

In June 2019, we began the second phase of the newfacilities, and the hotel will be a "remm plus" hotel mainly

construction work, with the full opening of the department store

comprising guest rooms for overnight stays operated by Hankyu

zone scheduled for autumn of 2021. In spring 2022, we expect

Hanshin Hotels, thus meeting the demand of visitors to Kobe.

to open up the office zone with rental floor space of approx.

■ Project summary

3,500 m2 (11F–38F), as well as the conference zone, which
will comprise one large and one small hall. We will continue

4-chome Kanocho, Chuo-ku, Kobe
(Direct access to Hankyu Kobe-sannomiya Station)in an integrated manner, seeking to create comfortable, high-Site area

Approx. 7,100 m2

quality areas that will enhance international competitiveness.

Total floor space

Approx. 33,300 m2

Size

East wing: 29 floors above ground and 3 below groundWest wing: 1 floor under railway station (some sections with 2
floors above ground/basement level)

PurposeHotel (scheduled as the second "remm plus" brand hotel),offices, commercial facilities, station facilities

Construction
completion

Spring 2021

Specifically, we will upgrade city functions, enhance disaster

Artist's impression of completed building

preparedness, create new public spaces, and form attractive■ Project summary

townscapes.

Location

1-1 Umeda, Kita-ku, OsakaSize

38 floors above ground and 3 below ground

Site area
Total floor
space

Approx. 12,200 m2*

Purpose

Department store, offices, halls, etc.

Approx. 260,000 m2

Construction
completion

Spring 2022

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

Osaka Station North District (Umekita) Phase II Development Plan

Initial opening aroundsummer 2024

Artist's impression ofcompleted building

New lines planned by Hankyu Corporation
Hankyu Corporation is studying three new line

by Mitsubishi Estate Co., Ltd.) formed a consortium with six design andprojects*1 in order to reinforce the connection

operating companies (including Hankyu Hanshin Properties) to submit

between the line-side areas including Umeda

an application to develop the Osaka Station North District (Umekita)

and the gateways of Kansai consisting of Kansai

Phase II Development area. As a result, the consortium was selected byInternational Airport and Osaka International

the Urban Renaissance Agency to lead development of the area.

Airport (Itami Airport) as air gateways and Shin-

In line with the project's concept of fusing greenery and innovation,

Osaka Station which is planned to serve as aand utilizing our track record in the GRAND FRONT OSAKA

station on the Linear Chuo Shinkansen Line. Bydevelopment project, we will work to ensure the Umekita area is a

improving these new lines, we will reinforce

leading example of urban development in Kansai and across Asia. (Initial

the railway networks and aim at creating the

opening scheduled for summer 2024; complete opening in fiscal 2028)

line-side areas capable of being continuously■ Project summary

Sanyo Shinkansen

Kobe-Sannomiya

Hankyu Kobe Line
Hans

hin M

Port Liner

North zone

Kobe Airport

South zone

Approx. 15,720 m2

Approx. 30,430 m2

Total floor space

Approx. 154,200 m2

Approx. 413,000 m2

Main purposesCore function,* hotel, residence, etc.

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

*We will establish platform facilities conducive to life design innovation (approx. 10,000 m2) andinnovation facilities (approx. 20,000 m2: MICE facilities, co-working space, SOHOs, etc.), andcollaborate with Knowledge Capital, the intellectual creation hub of GRAND FRONT OSAKA andother such functions to pursue the creation of life design innovation.

Urban Open Space Specifications

Artist's impression of completed building

25

Hankyu Hanshin Holdings Integrated Report 2020

Site area

45,000 m2

Total facility floor space

12,500 m2

Main purposes

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

*1 Naniwasuji Connection Line: The line to connect Juso Station with
Osaka Station to be newly constructedin the Osaka Station North District(Umekita) Phase II Development Area.
Shin-Osaka Connection Line: The line to connect Juso Station with
Shin-Osaka Station.
O s a k a A i r p o r t L i n e : The line to diverge from the Takarazuka
Line and be connected to Osaka
International Airport.
*2 License acquired on July 10, 2019; Scheduled for opening in
spring 2031

TokaidoLinear Chuo Shinkansen Shinkansen
Hokuriku Shinkansen

Juso

Hankyu Kyoto Line

Kyoto-kawaramachi

ain L

ine

Osaka-Umeda

Private-sector Zone Specifications
Zone

Shin-Osaka

Osaka

NaniwasujiLine( planned)*2

selected by many customers in the future.

To Takarazuka

Osaka International
Airport(Itami Airport)

HankyuTakarazuka LineA joint venture of nine developers (including Hankyu Corporation; ledSite area

Creating Real Value: Our Story

Location

reconstruction work and improvement of nearby public facilities

NB: T his illustration is an image drawing made at the time of
the initial proposal (May 2018) and is subject to change.

Completion inspring 2021

JR
Namba

Shin-Imamiya
Nankai Line (Airport Line)

Kansai International
AirportHanshin Namba Line

Osaka-Namba
JR Osaka Loop Line

Tennoji
JR Hanwa Line

NaniwasujiConnection Line
Shin-Osaka
Connection Line
Osaka Airport Line

NB: Specifications for private-sector zones are those finalized under the town plan (April 2020);
specifications for urban open spaces are those included in the initial proposal (May 2018).

Hankyu Hanshin Holdings Integrated Report 202026

Creating Real Value: Our Story

COVID-19: Its Impact and Our Response
ongoing efforts to ensure customer safety, and we will continue

Impact of COVID-19 on Business Operations

to seek cost savings.

Containing the Virus's Spread and Planning for the Post-COVID■ FY2021 1Q Results

The Group's operations—including Urban Transportation,
Entertainment, Travel, Hotels, and Real Estate—were severely
affected by COVID-19 in the first quarter of fiscal 2021.
Revenues and income both decreased in this period (see our
website for details regarding 1Q accounts).
Accordingly, the forecast for the Group's full-year financial
performance is bleak. This, however, will not compromise our(¥ billion)
YoY difference

Revenues fromoperations

Real EstateEntertainment

Impact of COVID-19
−24.7

−11.0

−20.1

31.5

42.3

3.5

FY2021 1Q

Revenues fromoperations

111.3

187.2

−­­75.9−­­40.5％

including stricter ventilation, cleaning, and disinfecting, as well as

Operating income−­­13.2

30.9−­­44.1−

monitoring the physical condition of our staff. Moreover, some of

Ordinary income−­­15.4

32.2−­­47.6−

Net income
attributable toowners of the parent−­­18.9

21.4−­­40.3−

TravelInternational
Transportation

−12.9

12.5

confidence in their safety, we have a range of measures in place,

HotelsOther

Adjustment

Consolidated

9.0

−8.6

111.3

−14.9

0.1

18.8

2.1

−87.5

48.7

23.0

11.2

11.0

19.1

16.2

6.7

−9.0

187.2

−6.4

−19.5

+1.2

−10.9

−0.3

−14.1

+2.3

+0.3

−75.9

Operating income

−19.6

−3.4

−10.7

FY2021 1Q

−7.2

7.9

−2.6

0.8

−4.9

0.01

−5.2

−0.2

FY2020 1Q

12.9

8.1

7.9

0.5

2.1

−0.2

0.3

−20.1

−0.2

−10.5

+0.3

−7.0

+0.2

−5.5

YoY difference■ Impact of COVID-19 on Profits and Loss

Revenues fromoperations

OperatingincomeOrdinary
incomeExtraordinary
incomeExtraordinaryloss*

Income before
income taxes(¥ billion)

Consolidated
Urban
total
Transportation

Real
EstateEntertainment

−87.5

−24.7

−11.0

−20.1

−12.9

−14.9

−46.5

−19.6

−3.4

−10.7

−7.4

−5.0

−46.6

−19.6

−3.4

−10.7

−7.4

−5.1

0

0

−

0

0

−

10.1

0.6

2.2

3.1

2.2

2.6

−56.7

−20.2

−5.6

−13.8

−9.5

−7.7

TravelHotels*In accordance with the Audit Considerations related to COVID-19 (Part 4) issued by theJapanese Institute of Certified Public Accountants on April 22, 2020, and in response to demand
from national and local governments, if business operations are suspended or events arecancelled, the fixed costs that arise during the period of suspension and the direct costs incurredin preparing for and cancelling those events are to be listed in accounts as extraordinary losses.

issues, such as digital signage and color-coded external lighting of
the Umeda Hankyu Building to remind people of the current status as"new era," we have adopted online tools so that, for instance, potential
condominium buyers can consult our sales staff in complete safety andcomfort.

Entertainment
Preventing Infections at Hanshin Koshien Stadium and the
Tigers' New TV Shout-Out for Fans

−1.8

−13.2

from national and local governments as well as the NBP organization.

0.2

−0.8

30.9

−0.4

−1.0

−44.1

In addition to in-stadium anti-infection measures, various otherinitiatives were put in place for ticket sales and events, services, andperformances in and around the stadium.
Hanshin Electric Railway is also working proactively to develop
fresh ways of enjoying sports in the post-COVID era. For instance,
the company is collaborating with Juwwa, a start-up web-based

Urban
Transportation

Stay-home trends following the government's stateof emergency declaration and the evaporation of
inbound tourism resulted in a decrease in revenues.

Real Estate

Revenues from leasing and sales of condominiums
decreased as a result of closures and reduced
operating hours at leased facilities and suspensionof domestic condominium sales.

project was the experimental "Hanshin Tigers Fans TV Shout-Out," aThe postponement of the start of the NPB baseballseason and suspension of Takarazuka Revue
performances resulted in a decrease in revenues.

to post their comments andEntertainment

TravelSuspension of international and domestic tours
resulted in a decrease in revenues.

Hotels

The evaporation of inbound tourism demand, anda drop-off in domestic travel (business and leisure)and banquet demand resulted in a decrease inrevenues.

community service provider, to come up with new perspectives fordelivering sport and entertainment content. One outcome of thischat-based function that let fans roar their support during the Tigers
vs. Giants games played without spectators in July 2020. Allowing fans

Hankyu Corporation
To help stop the spread of COVID-19 and maintain an on-board
environment that lets passengers ride with peace of mind, allHankyu trains are disinfected regularly, and windows are kept
open for thorough ventilation. All train seats, straps, handrails,
and windows are treated with antiviral, antibacterial agents,
and passengers are reminded to play their part, such as bycommuting at off-peak times and observing cough etiquette.
Stations also play a major role in our efforts to maximize
passenger safety and comfort, for instance through improved
sanitary facilities including Western-style, multifunction toilets
with seat disinfectant dispensers.

Hanshin Electric Railway
Hanshin's broad-ranging initiatives to halt the virus's spread
include regular disinfecting of ticket machines, staircase
handrails, and other places of regular contact, as well as seethrough plastic curtains at ticket gate staff booths to prevent
transmission by airborne droplets. As with the Hankyu Railway,
all Hanshin train seats, straps, handrails, and windows aretreated with antiviral,
antibacterial agents, andpassengers are reminded
to play their part, such

cough etiquette.

Hankyu Hanshin Holdings Integrated Report 2020

temperatures, they have to do so in close personal
proximity, thus causing queues to form and raising the riskof infection. The new AI-based Mimamorume device uses
thermography and AI-based facial recognition to offer acontactless way of taking body temperature that avoids thelikelihood of queuing. This is just one example of how weHankyu Travel International's Online Tours
Hankyu Travel International has begun selling online tours, in which"travelers" participate via the Zoom videoconferencing system.
As people continue to stay home amid the spread of COVID-19,
online tours are a way to enjoy the thrills of travel—complete withtour conductor—from the comfort of home. These tours are a fullyinteractive form of entertainment, and participants are connected to alive feed from the tour destination, and can ask questions via the chatfunction. We look forward to developing a strong lineup of online tour
content and providing attractive new
products to meet the new needs of a
new age.

International Transportation

the world. Despite the global spread of COVID-19, we arranged charter
flights for air cargo, and we are determined to perform our many roles in

Takarazuka Revue: Theater Reopening and New Initiatives
The Takarazuka Revue Company initially suspended performances toreopened, and the company's facilities are subjected to strict antiinfection measures in accordance with national and local government
theater. Having our own theater rather than renting someone else's
gives us the flexibility to schedule shows and sell tickets as appropriate
to incorporate these safety measures. Shows may have beensuspended, but our stars remained busy, connecting with fans on social
networking services and putting on "Takarazuka at Home" limitedtime free online performances. Even now, after shows resumed, we
remain eager to find new ways for people to enjoy Takarazuka Revues,
including live viewing events at movie theaters, full broadcast of someshows via the web, andensuring distribution infrastructure is up and running, forwarding agent,customs broker, warehouser and many
more. By operating a thorough regime toprevent infections among our workforce,
we are determined to keep the flow ofgoods moving without compromisingcustomer and consumer safety.

HotelsOpening of Relocated Takarazuka Hotel Delayed
Given the circumstances surrounding the spread of COVID-19, we
decided to delay the opening of the Takarazuka Hotel in its new
location to protect the safety of guests, employees, and others. The
hotel's doors eventually opened on June 21, 2020. In order that people
can use the hotel with complete confidence in its safety, stringent anti-

Takarazuka-themed face

infection measures are in place. In keeping with the hotel's concept—

masks.

"your everlasting dream"—guests are treated to facilities and service ofsuch quality that feels like an extension of the dreamworld portrayed

Takarazuka Revue stars
connected with fans via SNS
while shows were suspended.

in Takarazuka Revue performances. As an icon of Takarazuka, we lookforward to welcoming new and familiar guests to an everlasting dream©Takarazuka Revue Company

27

businesses. Currently, when staff at various facilities take customers'

Transportation Business comprises 52 locations in Japan and 134 aroundamong fans watching on TV.

as by commuting at offpeak times and observing

part of the Mimamorume line, a core facet of our safety and education

Centered on Hankyu Hanshin Express as its focal point, our International

way of amplifying team spirit

guidelines, including antiviral, antibacterial treatments throughout the

Urban Transportation

facial recognition and body temperature measurement functions as

Keeping Goods Moving Worldwide

views via the web is a newminimize opportunities for COVID-19 to spread. Since then, doors haveContaining the Virus's Spread and Planning for the Post-COVID Era

We have released a new, compact, AI-based device that combines

TravelVarious measures have been instituted in accordance with guidelines■ Major Examples of Impact of COVID-19 on
Business Operations

AI Tech for Easier Body Temperature Measurement

strive to find ways of making all areas of society safer.

−46.5

−5.0

Information and Communication
Technology

Creating Real Value: Our Story

60.1
−28.6

−7.4

our facilities are used for educating the greater public on COVID-19

part of the "Osaka Model" for action on COVID-19. To prepare for the

YoY difference

FY2020 1Q

In order that our customers can use our commercial facilities withFY2020 1Q(¥ billion)
Information andCommunication
Technology

Era at Commercial Facilities

FY2021 1Q■ Segment-Specific Performance in FY2021 1Q
Urban
Transportation

Real Estatelong into the future.

Hankyu Hanshin Holdings Integrated Report 202028

Business Strategy

Urban
Transportation
Senior Managing Director,
Hanshin Electric Railway
Co., Ltd.

Senior Managing Director,
Hankyu Corporation

We remain focused onenhancing the value of ourrailways by providing safe,
secure, and comfortabletransportation services.

3

Yusuke Kusu

Yoshifumi Nomura

Retailing Business

Fiscal 2020 Review of Operations

The Phase II area of TauT Hankyu Rakusaiguchi opened,

Revenues from operations decreased in comparison witha grade-separated facility in the space created by

the previous fiscal year, impacted by the outsourcing ofelevating the tracks of the Hankyu Kyoto line near Hankyu

convenience store and station-based store operations.

Rakusaiguchi Station.

Operating income was solid at both Hankyu and Hanshin,but ended slightly down from the previous fiscal year due tothe impact of COVID-19 in the fourth quarter.

4

Revenues from operations and operating income both

Railway Businessdecreased significantly from the same period in the previous

At Saiin Station on the Hankyu Kyoto Line and Hanakuma

fiscal year due to the impact of COVID-19 on the railway

Station on the Kobe Rapid Transit Railway Line, construction

1equipment, thus further promoting universal design of ourstations.
A revision of timetables at Hanshin Electric Railway

resulting in 8-car trains being operated over a broader timespan in the weekend timetable for rapid express services asof tracks between Hanshin Sumiyoshi and Ashiya has been

❹ Expand feeder services and extend catchment areas ofrailway lines and stations

completed between Uozaki Station and Ashiya Station forbound trains have begun operating on elevated tracks inthis section.

Other

convenience, including the introduction of buses withwheelchair lifts by Hanshin Bus and Osaka Airport Transport.

28.1%

Consolidated
revenues fromoperations■ Transportation revenue(YoY ‒3.6%)

Hankyu Corporation transportation revenue (tier 1 + tier 2)

Real EstateEntertainment

Other tickets
Note: Figures for percentage of revenues from operations and operating
income are calculated based on the simple aggregate amount(including intersegment transactions) of each segment.

Revenues from operations

200

239.5

237.1
17.8

17.2

236.0
17.6

238.6
18.2

227.2
17.6

10

50

5

0

29

Hankyu Hanshin Holdings Integrated Report 2020

2016

2017

2018

2019

2020

0
(FY)

+660

+2.3

4,494

+1

96,516−7,632−2.4

Workers

243,854

237,542+6,311+2.7

100,750

Hanshin Electric Railway

655,129

337,778
100,235

Workers

Students

FY2020FY2019Change12,327

12,024+303

21,66522,03011,08033,993

10,790
1,233

+290

+2.7

34,054

118,559

121,012−2,452−2.0

Workers

101,243

98,310+2,932+3.0

Commuter passStudents

127,652

124,353

26,409246,21226,043+3,298245,366

+366

+1.4

+0.3

1. Revenues of less than one million yen have been rounded down; personnel totalsof less than one thousand people have been rounded down.
2. Fare revenues and passenger volumes from other tickets 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

31,12629,48429,92230,391

31,29931,54932,272

32,62833,19833,45692,929+2.7+845

FY201991,141−0.2

Other tickets

FY201890,191+1.0−61FY201789,485+2.5+12FY201689,708%−1.7

FY201561,630−0.1−364

FY201460,749+0.5−806

Impact of natural disasters–¥0.1 billion

1,246

Total

+2.0

+514

655,936

Impact of COVID-19–¥0.9 billion

Commuter pass

+6,825FY201360,268−0.5

318,158

344,604

FY201260,000+0.0−508

FY201158,582+2.0

60,91092,45962,92095,19262,72095,34863,137

96,33563,05996,516（¥ million）
FY202061,887

34,11996,007107%(3.8% up on FY2015)

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Hanshin Electric Railway transportation revenue (tier 1 + tier 2)

15

100

+662

28,962FY2010

2010

25
20

33,456

29,623−1.9

FY2010 transportation revenue (total) = 100%

（%）

150

Hanshin Series 5700 train

Total

Operating income margin (right axis)(¥ billion)
250

Commuter pass34,119%−1,171

310,525

Total¥ 762.7 billion

Change63,059Other tickets

Total

Passenger
volumes(Thousands)

FY201961,88796,007

Students

Fare revenues(Millions ofyen)

FY20204,496Commuter pass

Passenger
volumes(Thousands)

universal design and offer our customers greater

Urban Transportation

Students

Impact of natural disasters–¥0.6 billion

Business Strategy

We have a number of initiatives in place to implement■ Fiscal 2020 Breakdown of revenues from operations

Workers

Other tickets

Automobile Business

Revenues

Commuter pass

Total

both Osaka-bound and Kobe-bound trains, and Osaka-

Advance line-side measures in the bus and taxi businesses/
Enhance bicycle parking areas at railway stations and bicycle
rental services/Collaborate with line-side area municipal
authorities, chambers of commerce and industry, and companies

TravelFare revenues(Millions ofyen)stock used in, some express services. The ongoing elevation

Enhance security/Develop rolling stock

Impact of COVID-19–¥2.2 billion

Other tickets

well as an adjustment of the sections served by, and rolling❸ Ensure reliable transportation

Information andCommunication
Technology

Hankyu Corporation

convenience and smoothing out some congestion peaks,

Develop railway stations and lines/Expand and strengthen railway
network

International
Transportation■ YoY comparison of railway performance results

was undertaken in March 2020 with the aim of improving❷ Increase convenience and reliability of infrastructureand expand railway network

Hotelsand station-based store operations in August 2019.

movement resulted in the installation of elevators and other

Develop personnel/Strengthen Group collaboration/Enhanceservices and convenience/Expand communication/Enhanceappeal of railway stations

Hankyu Series 1000 train

down sharply—and the outsourcing of convenience store

facilities, and work designed to secure lines of passenger❶ Provide quality urban transportation services and otherrelated services

2and automobile businesses—passenger numbers wereand relocation of ticket gates and revising the layout of

Basic Policies

Fiscal 2021 First Quarter Results

Other tickets
Commuter pass
Total

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY20209,642

10,126

10,623

10,74011,008

11,107

11,372

11,563

11,797

12,024

12,327

18,39628,03818,89929,025

19,42230,045

19,66930,41020,26031,26920,286

31,394

21,03532,407

21,13632,69921,63833,43622,03034,054

21,66533,993121%
FY2010 transportation revenue (total) = 100%
(8.3% up on FY2015)

Impact of COVID-19

Revenues from operations ‒¥5.2 billion
Operating income ‒¥4.7 billion

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Hankyu Hanshin Holdings Integrated Report 202030

Business Strategy

Real Estate
Ryuichi Morotomi

Satoru Nishino

President andRepresentative Director,
Hankyu Hanshin
Properties Corp.

Our goal is to support attractive
urban development while
offering the choice ofan affluent lifestyle.

Executive Vice President andRepresentative Director,
Hankyu Hanshin
Properties Corp.

3

Marks (Fukushima-ku, Osaka), Geo Kobe Nakayamate-doriFiscal 2020 Review of Operations(Chuo-ku, Kobe), Geo Shinjuku Hyakunin-cho (Shinjuku-ku,
Tokyo), and Geo Kashiwanoha Campus (Kashiwa, Chiba).

Revenues from operations and operating income decreased

Outside Japan, we participated in residential sales

in comparison with the previous fiscal year due to a

projects in Thailand, Vietnam, the Philippines, Indonesia, andreactionary decline from the sale of commercial-use land in

Malaysia; overall we have been involved with some 30,000

the eastern area of Saito (Ibaraki, Osaka) and an increase

residences (cumulative, as of the end of fiscal 2020), a large

in costs such as taxes and depreciation/amortization in theincrease over the preceding year. We have invested in an

real estate leasing business.

Indonesian entity that owns, operates, and manages two of
the country's most prominent complexes, Plaza Indonesia

Real Estate Leasing Business

Complex and fX Sudirman, which comprise commercial

Joint projects with other companies opened:facilities, offices, and hotels. In this way, the company has• Kyobashi 2-6 Redevelopment Project (Chuo-ku, Tokyo);

1

Basic Policies❶ Enhance appeal of and revitalize Umeda area and otherareas served by our lines

 onsideration and promote systematic building reconstruction inC
the Umeda area

Develop major line-side bases from a long-term perspective● Strengthen competitive ability of existing lease properties●

Expand the scale of residential business in ASEAN nationsA cquire non-residential assets such as commercial facilities and offices❻ Strengthen and expand non-asset businessExpand scope of real estate funds and REIT business

Other

Hankyu Building, which is due for completion in spring 2021

1,516
1,302
1,087

1,000

1,159

1,114

2018

2019

500

215.7
19.5

222.6

1,800

237.3

236.0

Completion of
Umeda Hankyu
Building Office Tower

20.8

18.4

20

17.6

2017

(FY)

2020

50

5

2019

2020

Acquired LaLaport
Koshien (site)

Start of work on Phase Iof the Umeda 1-1 Project(unit: 1,000 m2)

1,930

Completion of Umeda Hankyu
Building Phase II Building

1,000

900

810

800

1,510
Completion of
GRAND FRONT OSAKA

1,400

640

15
10

2018

2016

1,600

25

100

2017

0

In the condominium sales business, sales of a number of

（%）

2016

1,500

Project and West Building Renewal Project at the Kobe

Leasable area in Umeda (right axis)

Operating income margin (right axis)(¥ billion)

Hankyu Hanshin Holdings Integrated Report 2020

other projects, including the East Building Reconstruction

29.2%

Revenues from operations

31

2024. Elsewhere, progress was also made on a number of

Leasable area (left axis)

Note: Figures for percentage of revenues from operations and operating
income are calculated based on the simple aggregate amount(including intersegment transactions) of each segment.

0

2,000

toward its advance openings, which are slated for summer

2,000Real Estate

150（units）

Phase II Development Project is progressing steadily(unit: 1,000 m2)(YoY ‒3.6%)

22.6■ Domestic condominium units soldarea beginning on schedule in June 2019. Also, the Umekita■ Leasable area (at end of fiscal year)¥ 762.7 billion

Entertainment

CO•MO•RE YOTSUYA

completion in spring 2022, with construction of the Phase IIproperties were made, including Geo Fukushima Noda The

Urban Transportation

Consolidated
revenues fromoperations

International
Transportation

200

development in the Umeda area, we are on track for project

Real Estate Sales Business and Others
Hotels220.9

the same period in the previous fiscal year was minimal.

Distribution Center (Ibaraki, Osaka).

■ Fiscal 2020 Breakdown of revenues from operations

250

price ranges ensured the decline in operating income from

(Chuo-ku, Kobe), and the Project to construct Saito Moegi

Revenues

Information andCommunication
Technology

COVID-19. Despite this, sales of condominiums in higher

Business Strategy❺E xpand and further accelerate the scale of international businesses

Travelfacilities in the Umeda area and elsewhere as a result ofAs part of the Umeda 1-1 Project, our large-scale articipate in medium- and long-term projects (urbanP
redevelopment, building reconstruction, etc.)● E xpand business portfolio (rental condominiums for income, etc.)● Start expanding business area (extend to Nagoya area and major
regional cities)2

due to closures and reduced operating hours by commercial

commercial facility in the Ginza area of the Tokyobuildings.

●

Osaka Umeda Twin Towers Southdecreased from the same period in the previous fiscal year

ku, Tokyo), the Hankyu Hanshin Holdings Group's firstoccupancy rate of existing commercial facilities and office❹ Secure stable profits in the real estate sales business andexpand scale of operations●

Fiscal 2021 First Quarter Results
In the real estate leasing business, revenues from operations

boost the competitiveness and maintain and improve theReal estate sales business and others●(CO•MO•RE YOTSUYA) (Shinjuku-ku, Tokyo).
In addition, the Hankyu Hanshin Ginza Building (Chuo-

metropolitan area, was completed. We also worked to❷ Strengthen business foundation, etc., in Tokyo
metropolitan area
❸ Strengthen the distribution facility real estate●

4

Project (Fukushima-ku, Osaka);• Y o t s u y a S t a t i o n D i s t r i c t R e d e v e l o p m e n t P r o j e c t

Real estate leasing business●established a solid foothold in the leasing business overseas.

• F ukushima 5-Chome and 7-Chome Joint Development

1,200

2010

Completion of Umeda Hankyu Building
Phase I Building, start of work on Phase II

2011

2012

2013

2014

2015

700

Completion of Umeda 1-1
Project Phase I, start of workon Phase II, partial sale of stakein GRAND FRONT OSAKA

2016

2017

2018

2019

2020

(FY)

600

0
(FY)
Hankyu Hanshin Holdings Integrated Report 202032

Business Strategy

Entertainment
Tomotsugu Ogawa

Koji Momokita

Managing Director,
Hankyu Corporation

We will continue tofulfill dreams and offer
excitement throughour content.

Managing Director,
Hanshin Electric
Railway Co., Ltd.

3

Fiscal 2020 Review of Operations

Fiscal 2021 First Quarter Results

In the sports business, revenue from ticket sales and from

Revenues from operations and operating income decreased

sales of food, drink, and merchandise were solid, but

sharply from the same period in the previous fiscal year due

revenues from operations ended at a similar level to theto the impact of COVID-19—e.g., in the sports business,previous fiscal year and operating income decreased from

Hanshin Tigers' games were suspended, and in the stage

the previous fiscal year due to the impact of COVID-19 inbusiness, Takarazuka Revue performances were cancelled.

the fourth quarter.
In the stage business, shows were well received andmerchandise sold well, but revenues from operations and14■ Total attendance at Hanshin Tigers home games(by season)

operating income decreased from the previous fiscal year

（Thousands of people）

due to the impact of COVID-19 in the fourth quarter.

3,500
3,000

Basic Policies

Sports Business❶ Maximize value of the Hanshin Tigers and Koshien brands
Forge a team that contends for the championship on a regularbasis/Increase the appeal of Koshien Stadium and expand thestadium business

The Hanshin Tigers, supported by their many fans, were

Maintain the high capacity utilization and financial performanceof the Takarazuka Revue/Expand the content business/Increaseinternational businessthrough the latter stages of the season, and succeeded in

1,000❸ Advance growth of other entertainment businesses andthe leisure business

related merchandise were well received, and we pursued aExpand the music business and Mt. Rokko businesses

2016

0

2

performances "GOD OF STARS" (the final show of one of the

Revenue

troupe's top stars) and "Éclair Brillant," and Flower Troupe

HotelsHanshin Koshien Stadium

Other

Information andCommunication
Technology

2019

（CY）

Takarazuka Grand Theater/
Tokyo Takarazuka Theater
Other theaters(Thousands of people)
3,500
3,000

2,700

2,800

2,900

2015

2016

2017

3,000

Live viewing

3,200

2,500

1,500
1,000

¥ 762.7 billion

Travel

2018

2,000

Urban Transportation

Consolidated
revenues fromoperations

International
Transportation"Charme!"2017

Business Strategy■ Fiscal 2020 Breakdown of revenues from operations

performances "A Fairy Tale –The Spirit of the Blue Rose" and3,091■ Takarazuka Revue
Annual total attendance at Takarazuka Revue

Stage Business
Performances proved popular, including Star Troupe

2,899

500

variety of initiatives to make facilities even more enjoyable
for customers, including expanded food and drink menus.

2015

3,035

2,000
1,500

At Hanshin Koshien Stadium, food, drink, and player-

2,911

2,500

part of a hot contest for the upper places in the league
progressing to the Climax Series.

❷ Maximize value of the Takarazuka brand

2,878

500
0

(YoY ‒3.6%)

Real EstateEntertainment

9.2%

2018

2019

（CY）

Note: Live viewing refers to live streaming of shows at movie theaters
nationwide for paying audiences.

Note: Figures for percentage of revenues from operations and operating
income are calculated based on the simple aggregate amount(including intersegment transactions) of each segment.

Revenues from operations

Operating income margin (right axis)(¥ billion)

（%）

150
120
90

25

112.5

115.2

13.6

13.6

121.1
14.7

18.0

74.5

60

15.8

74.0

20
15
10

30
0

5

2016

2017

Impact of COVID-19
Takarazuka Grand Theater (Entrance)

2018

2019

2020

0
(FY)

Revenues from operations ‒¥4.4 billion
Operating income ‒¥3.0 billion

Note: In line with the launch of the Information and Communication Technology
business, ﬁgures post-FY2019 do not include these business segments.

©Takarazuka Revue Company

33

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202034

Business Strategy

Information andCommunication
Technology

3

Takashi Mizobuchi

Managing Director,
Hanshin Electric Railway Co., Ltd.

Contributing to the developmentof society through information andcommunications technology.

4

Fiscal 2020 Review of Operations

Fiscal 2021 First Quarter Results

In the information services business, we received large

Revenues from operations and operating income increasedorders for transport systems, and business was solid in theover the same period in the previous fiscal year due tobuilding management systems segment as well as internet

large orders for transport systems in the information

services, an area in which we have high expectations forservices business and an increase in internet service

growth.

subscribers in the broadcasting and communications

The broadcasting and communications business achieved

business.

solid growth by providing products that fulfilled customer
needs, such as expanding fiber-to-the-home (FTTH) services
for multi-dwelling residences.
In the safety and education businesses, an increase in1

needs relating to safety and security drove a steady increase

Basic Policies

in subscribers to the Mimamorume school route email
notification service.

❶ Grow income continuously in the information services
business by increasing income in target growth markets,
developing businesses outside the Group with a focus
on the Kanto and Chubu areas, and catering to new IT
markets❷ Achieve stable income in the broadcasting andcommunications business by expanding and improving
regionally based products and services, acquiring
customers mainly through communications services,and retaining customers through the introduction anddevelopment of lifestyle services

As a result of all the above, revenues from operations andoperating income increased in fiscal 2020 over the previous
fiscal year.

■ Number of households subscribing to cable TV❸ Expand our safety and education business further
in response to programming education becoming acompulsory school subject, and increasing needs forpeace of mind and safety

800

600

■ Fiscal 2020 Breakdown of revenues from operations
Hotels

2018

2019

648

Other

Urban Transportation

200

0Consolidated
revenues fromoperations

International
Transportation

Information andCommunication
Technology

625

400

Revenue

Travel604

Business Strategy

2

On-board cameras (Information services business)（1,000 households）

2020

(FY)

¥ 762.7 billion

Bay communications (Cable TV store)(YoY ‒3.6%)

7.2%■ Mimamorume (school route email notification
service) subscribers

Real EstateEntertainment(Thousands of people)

Note: Figures for percentage of revenues from operations and operating
income are calculated based on the simple aggregate amount(including intersegment transactions) of each segment.

300

260
Revenues from operations

Operating income margin (right axis)（%）(¥ billion)
80
60
40

25

53.5
9.9

58.6

9.6

0

Robotics
Programming Training
at ProgLab
ロボットプログラミング教室「プログラボ」

35

Hankyu Hanshin Holdings Integrated Report 2020

200

20
15

20

230
200

100

10
5

2019

2020

0
(FY)

0

2018

2019

2020

(FY)

Mimamorume (School route email notification service)

Hankyu Hanshin Holdings Integrated Report 202036

Business Strategy

TravelSeiji Matsuda

Creating travel itineraries
that reflect
customers' desires.

Atsushi Sakai

Representative Director andChairman, Hankyu Travel
International Co., Ltd.

Representative Director,
President, Hankyu Travel
International Co., Ltd.

3

4

Fiscal 2020 Review of Operations

Fiscal 2021 First Quarter Results

The travel segment benefitted from a longer-than-usual

The effects of COVID-19 caused the cancellation ofGolden Week holiday period, with strong numbers tointernational and domestic tours throughout the quarter,

European and domestic destinations.

resulting in large year-on-year decreases in operating

In the inbound travel segment, proactive marketing

revenue and income.

activity as part of our ongoing efforts to capture inboundtourism demand resulted in strong numbers from Europe.
In the end, however, revenues from operations andoperating income decreased from the previous fiscal year
due to the impact of COVID-19 in the fourth quarter.

1

Basic Policies■ Travel billing ranked❶ Strengthen competitiveness of travel packages

Total travel billings (FY2020)

Strengthen areas outside Europe/Strengthen specialized
products/Expand customer base among new demographics/
Revise cost structure for advertising expenses, etc.

Rank

❷ Establish a second pillar

Strengthen initiatives for non-Japanese tourists/Expand group andbusiness travel services and create stable source of revenues

2

Revenue■ Fiscal 2020 Breakdown of revenues from operations

International
Transportation

Other

Urban Transportation

Consolidated
revenues fromoperations

Travel4.2%

Rank

Company name¥ billion

Rank

Company name¥ billion

1JTB

1,577.1

1

JTB

544.8

1

JTB

934.4

2

H.I.S.

494.0

2

H.I.S.

404.5

2

KNT-CT Holdings HIS

280.7

3

KNT-CT Holdings

459.2

3

Hankyu Travel International

203.3

3

Nippon Travel Agency

267.7

4

Nippon Travel Agency

424.9

4

KNT-CT Holdings

153.7

4

ANA Sales

149.9

5

Hankyu Travel International

335.6

5

Nippon Travel Agency

109.6

5

JALPAK

133.3

6

JALPAK

178.2

6

AirTrip

56.3

6

Hankyu Travel International

128.6

7

ANA Sales

173.7

7

JALPAK

44.8

7

Tobu Top Tours

86.7

8

Tobu Top Tours

122.5

8

Nissin Travel Service

41.2

8

JR TOKAI TOURS

77.6

9

AirTrip

118.5

9

M.O.TOURIST

33.2

9

Meitetsu World Travel

69.9

10

Meitetsu World Travel

87.3

10

TABIKOBO

31.2

10

AirTrip

62.2

Compiled by Hankyu Hanshin Holdings based on Japan Tourism Agency Bulletin, "Business Volume for Major Travel Agents (April 2019 to March 2020)" andfigures published by major travel companies.
Note:1. Billings are rounded down to the nearest ¥100 million.
2. The total of Hankyu Travel International Co., Ltd., Hankyu Hanshin Business Travel Co., Ltd., and Hanshin Travel International Co., Ltd.

¥ 762.7 billion

Information andCommunication
Technology¥ billion

Domestic travel billings (FY2020)

Business Strategy

HotelsCompany name

Overseas travel billings (FY2020)(YoY ‒3.6%)

Real EstateEntertainment

Note: Figures for percentage of revenues from operations and operating
income are calculated based on the simple aggregate amount(including intersegment transactions) of each segment.

Revenues from operations

Operating income margin (right axis)（%）(¥ billion)
40
30

30.5

29.9

34.0
6.0

35.5

8

33.8

6

5.0

20
10
0

4

2016

Hankyu Hanshin Holdings Integrated Report 2020

2

2.1

2.2

2017

Impact of COVID-19

37

The five product brands offered by Hankyu Travel International.

0.6
2018

2019

2020

0
(FY)

Revenues from operations ‒¥4.9 billion
Operating income ‒¥3.1 billion

Hankyu Hanshin Holdings Integrated Report 2020

38

Business Strategy

International
Transportation
As a comprehensive distribution
enterprise, we are offering
creative value-added services tocustomers on a global basis.

Seisaku Okafuji

Kazuhiro Tanimura

Chairman & Chief Executive
Officer, Hankyu Hanshin
Express Co., Ltd

President & Chief Operating
Officer, Hankyu Hanshin
Express Co., Ltd.

3

expand our global network and boost the competitivenessFiscal 2020 Review of Operationsof our logistics business, for instance by opening a logistics
center in India.

Revenues from operations and operating income decreased
from the previous fiscal year amid a severe business4

environment as trade friction between the USA and China
caused a drop-off in air freight volumes mainly in Japan andRevenues from operations decreased from the same period

East Asia.

in the previous fiscal year due to a decline in air freight

Despite this, we are harnessing our capital andvolumes, which was caused by COVID-19, in addition to theoperational tie-up with Seino Holdings to establish a

US-China trade friction, which has been ongoing since 2018.

framework for providing logistics services that combine

Despite this, operating income increased over the previous

international transportation, logistics, and domestic

fiscal year due to an increase in trade in the logistics

transportation, as illustrated by the opening of the Narita

1business and ongoing efforts—in which customers' business

Global Logistics Center near Narita International Airport

Basic Policies

Fiscal 2021 First Quarter Results

continuity is top priority—to keep the flow of goods moving.

and our collaboration with Seino's truck terminal, whichsits adjacent to the center. In addition, we have worked to❶ 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
Strengthen sales capabilities globally/Maximize group synergy■ Expansion of our global network, strengthening of our logistics business● Narita Global Logistics Center commences operations

The 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 have established a logistics hub that combinesinternational 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 new clients and the volume of goods handled is steadily growing.

❸ Ensure robust global governance*A company of the Seino Holdings Group, which entered into a capital and operational tie-up with Hankyu Hanshin Express in 2018.

2

Revenue

London■ Fiscal 2020 Breakdown of revenues from operations
Hotels

Other

Information andCommunication
Technology

KampalaEntebbeNairobiMombasa

（%）

76.1

71.7

76.2

0

2.3
2016

4

2.7

2.2
2017

2

0.3
2018

2019

2020

Singapore

Kuantan

McAllenMonterrey
Bajio

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

Johor Bahru● Expansion of our Asian network,● Strengthening our business in

In April 2018, we acquired Intraspeed South
Africa (Pty) Ltd., a freight forwarder, as a
subsidiary; we also acquired Intraspeed's twocompanies in Kenya and Uganda as
subsidiaries. Today, we continue to reinforce
our operations in Africa.

In addition to new warehouses in Indonesia(2016) and Singapore (2017), we haveopened new warehouses in India, Vietnam
and Myanmar to further enhance our logistics
structure. We will continue to expand our
global network in growth markets, including
establishing new locations.

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 inCentral and South America from our basein Miami.

rollout of logistics centers

North and Central America

8
6

3.3

Los Angeles
Busan

ShanghaiTaipei
Kaohsiung

Chicago● Strengthening business development

10

90.0

60
40

Port Klang

in Africa

Operating income margin (right axis)

83.7

Kuala Lumpur

DurbanNote: Figures for percentage of revenues from operations and operating
income are calculated based on the simple aggregate amount(including intersegment transactions) of each segment.

(¥ billion)
100

Hanoi
Bangkok

DetroitToronto
New York
BostonCincinnati

Number of locations: 52 in Japan,
134 outside Japan(as of September 1, 2020)

Cape Town

Real Estate

Revenues from operations

Bawal

SeattleSan Francisco

Seoul

Dubai
Chiang Mai
Mumbai
DanangManilaPune
YangonChennaiBangalore
Coimbatore
ButterWorthJakartaPenangJohannesburg

Entertainment

IncheonBucheonHai PhongUrban Transportation(YoY ‒3.6%)

Beijing
Guangzhou

Delhi

Ahmadabad¥ 762.7 billion

TravelMoscow

Milan

Consolidated
revenues fromoperations

9.4%

20

Paris
Dusseldorf
PrahaFrankfurt

Hong Kong

Business Strategy

International
Transportation

80

Amsterdam

Rotterdam
Brussels0(FY)■ 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 tons)(1,000 TEU)

160
140
120
100

121

117

115

128

141
115

121

160

148

140

107

120
100

80

80

60

60

40

40

20

20

0

76

79

92

98

95

103

111

113

121

0

2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)*TEU :"Twenty-foot equivalent unit," a unit of cargo capacity based on the volume of a
20-foot-long container.

39

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 2020

40

Business Strategy

HotelsKazuhide Fujimoto

Yoshihiro Nakagawa

Japan's leading hotel chain
operator.

President and Representative
Director, Hankyu Hanshin
Hotels Co., Ltd.

Chairman and Representative
Director, Hankyu Hanshin
Hotels Co., Ltd.

3

4

Fiscal 2020 Review of Operations

Fiscal 2021 First Quarter Results

Despite the severe business environment amid increasingly

The effects of COVID-19 caused the temporary suspension

fierce competition among hotels in the Kansai area, weof operations at some hotels and sharp declines in

added momentum to our business expansion and boosted

customer numbers in both the accommodation and foodcompetitive ability with the opening of four hotels: Hoteland beverage segments, resulting in large year-on-year

Hankyu RESPIRE (one of our new hotel brands) in Osaka

decreases in operating revenue and income.

Umeda; remm Plus (another new brand) in Ginza, Tokyo;
preceded by remm Tokyo Kyobashi in Tokyo and Hotel

Despite these challenges, we succeeded in reopening the
Takarazuka Hotel in its new location in June.

Hanshin Annex Osaka.
These openings contributed positively to earnings, but
this was offset by the impact of COVID-19 in the fourth

1quarter that has decimated the hotel business in the Kansai

Basic Policies

region, and our accommodation operations were sluggish

Nationwide

over that period, resulting in year-on-year decreases in(Millions of people)

operating revenue and income.

❶ Improve profitability of existing hotels

Maintain and enhance product value through appropriate
investment
Make solid progress on current plans for opening new hotels whichmainly comprise guest rooms for overnight stays❸E stablish our market leadership in the Umeda area

Clarify our long-term management policy for our most importantfoothold, the Umeda area

■ Non-Japanese guests as a percentage of overnightstay guests
Tokyo metropolitan area

（%）
50
40
30

38.6

38.1
37.0

36.9

Kansai area

15

44.8

10

7.5%

Urban Transportation

39.9

Information andCommunication
Technology

16,00012,000Real EstateEntertainment

42.1

39.8

41.4

12.41

13.20

40.0
12.08

10.24

7.89

37.6

0

60
50

24.04
42.6

40
30
20
10

2015

2016

2017

2018

2019

2020

2018

2019

0
(CY)

(FY)

93.9
90.5
17,221
14,619Kansai area ADR

94.3
90.8
16,66514,140Tokyo metropolitan area occupancy rate

95.4
88.7
15,44913,549Kansai area occupancy rate （%）
100

90.9

80.6

90.9
16,654*
13,748*79.7

16,167
12,5504,000
0Operating income margin (right axis)（%）(¥ billion)
80

80
60
40
20

2016

2017

2018

2019

2020

0

(FY)

*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.

10

68.0
60

65.6

67.2

64.9

8

60.3

6

4.8

4.3

20
0

2017

8,000

Note: Figures for percentage of revenues from operations and operating
income are calculated based on the simple aggregate amount(including intersegment transactions) of each segment.

40

2016

20,000(YoY ‒3.6%)

Revenues from operations

19.74

（ %）

Source:"Visitor Arrivals, Japanese Overseas Travelers Trend in Visitor Arrivals to Japanand Japanese Overseas Travelers," Japan National Tourism Organization (JNTO),"Consumption Trend Survey for Foreigners Visiting Japan," Japan Tourism Agency

Tokyo metropolitan area ADR(Yen)¥ 762.7 billion

Travel

28.69

31.88

■ Average daily rates (ADR) and occupancy rates of Hankyu Hanshin Hotels in the Tokyo metropolitan area and Kansai area

Consolidated
revenues fromoperations

International
Transportation

0

31.19

Business Strategy

Other

Percentage visiting Kansai area (right axis)

5

40.6

10

Hotels2016

2017

Impact of COVID-19

3.3

2018

4

1.9

2019

2

2020

0
(FY)

Revenues from operations ‒¥5.2 billion
Operating income ‒¥3.3 billion

The Takarazuka Hotel

Hankyu Hanshin Holdings Integrated Report 2020

20

20

Revenue■ Fiscal 2020 Breakdown of revenues from operations

41

45.6

42.3

Kansai area

30
25

❷ Expand network by opening new hotels

2■ Visitors to Japan

Inside the Takarazuka Hotel lobby

Hankyu Hanshin Holdings Integrated Report 2020

42

ESG Initiatives

Hankyu Hanshin Holdings Group

Sustainability Declaration

General principles and priority issues (materiality matrix)

Under our management philosophy of creating satisfaction among our customers and contributing to society by delivering "Safety andComfort" and "Dreams and Excitement," we in the Hankyu Hanshin Holdings Group have been seeking sustainable growth and promoting■ Steps to Determine Priority Issues (materiality matrix)

a wide variety of efforts towards ESG (Environmental, Social, and Governance), a foundation for sustainable growth.

Step 1Society is now facing various challenges, ranging from response to climate change to growing concern over safety and security,
diversifying senses of value, and further advancement of technological innovations. With regard to the UN s Sustainable Development
Goals (SDGs), which UN member countries are intended to achieve by 2030, companies are expected to play increasingly significant
roles.

Based on guidelines such as the SDGs, GRI Standards, SASB Standards and ISO 26000,

Creating a long listof social issues

organize a list of universal social issues (1), a list of social issues particularly relevant to the
Hankyu Hanshin Holdings Group (2), and create a long list (349 items) of social issues with
importance to the Group.

Under these circumstances, the Hankyu Hanshin Holdings Group released the Sustainability Declaration in May 2020, which outlines
the Group's commitment to addressing various challenges in order to help realize a sustainable society.

Step 2

Summarizing into a
short list

Customers
Employees

Partners

Sustainably enhance
corporate value

Daily
life value

Socialvalue

Economic
value

25
g-TermManagement Vision for 20
MediumnalTerm Management P

Sustainability Declaration

1. General principles

2. Priority issues (materiality matrix) and theIdentiﬁcation ofpriority issues

personnel for each core business and external experts (for details, see pp. 53-54). Following

order of priority. In addition, conduct questionnaires of and interviews with the responsible
additional examination of the ﬁndings of the surveys and interviews, determine six priority
issues. The Board of Directors then approves the six priority issues.

Universal social issues● Addressing climate● Developing sustainable● Balancing economic growth● Adapting to circular● Promoting gender equality and● Enhancing corporatechangecommunities

society

diversityand employee satisfaction● Problem solving

through partnerships

governancepolicies for each one

3. Project themes, non-ﬁnancial KPIs

Our value to society
Missionsatisfaction among our customers andSocial issues particularly relevant to the Hankyu Hanshin Holdings Group● Depopulating society● Increasing public interest in● Accepting multiple cultures along with● Aging infrastructure● Advancement of technology

safety and security● Aging population● Tight labor market● Adapting to diverse values

contribute to society.

an increase in the foreign population

ESG Initiatives"Dreams and Excitement," we create■ General Principles

Based on their level of importance to the Group and to our stakeholders, rank the items in■ Priority Issues (materiality matrix)

By delivering "Safety and Comfort" andGrou
p Managyement Philosoph

Step 3The vision and strategy for the Group's
sustainable growth, and the speciﬁc plansfor implementation thereof
Three core elements underlie our pursuit ofsustainable growth:

L onirrelevant to the Group and combining those that overlap.

Communities

Contributing to asustainable society
Shareholders

Make a short list (54 items) of items by removing items from the long list (349 items) that are

innovation

The Sustainability Declaration embodies our contribution.

Six priority issues (materiality matrix)

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

Safe, reliableinfrastructure

Thriving
communities

Life designs
for tomorrow

Empowering
individuals

Environmental
protection

Robustgovernanceto all and inspires the next generation to dream with hope.

43

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 2020

44

ESG Initiatives

Hankyu Hanshin Holdings Group

Sustainability Declaration

Priority issues, policies, project themes and major
non-financial KPIs
Major non-financial KPIs

In advancing its sustainable management, the Hankyu Hanshin Holdings Group has established six important priority issues, as well as● Zero culpable incidents in our railway business

policies, project themes and major non-financial KPIs as follows. Based on the Declaration, we will accelerate the Group's ESG projects● Employee satisfaction: Always better than inwhile working to solve social issues through our business activities with the aim of raising our sustainable business value and thereby
helping to realize a sustainable society.

previous survey*1● Women in management positions: Around 10% in

FY2031● Women among new hires: Always more than 30%

Priority issues and policies

Safe, reliable infrastructure
Provide railways and other infrastructure that are safeand disaster resilient. Ensure that anyone can safely
access our facilities and services.

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

Life designs for tomorrow
Promote refined and inspired lifestyle solutions for abetter tomorrow.

Empowering individuals• Cut emissions by 26％ at Hankyu Hanshin Holdings and subsidiaries'
Japanese worksites*2• Cut railway energy consumption of Hankyu's and Hanshin's railways by 40％*1 The survey is conducted biennially.
*2 The same level as the target value set by the Japanese government as a national greenhousegas reduction goal based on the Paris Agreement

Project themes

Related fields*(1) Eliminate accidents and improve safety at railways and commercial facilities(2) Promote actions to prevent/reduce accidents and respond promptly andproperly to accidents if they occur(3) Establish safe and comfortable facilities and services that satisfy the needsof a diversity of people(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 and raise children(4) Promote measures to extend the healthy lifespan of the elderly(5) Offer services that satisfy the needs of foreign visitors/residents(6) Enhance collaboration and partnerships with universities, research institutions,ventures, local communities, etc.
(1) Propose products/services that help realize a lifestyle in harmony with nature(2) Propose products/services that lead to revitalization and promotion of local
communities and cultures(3) Propose products/services that respond to diverse values and create comfort
and excitement(4) Propose products/services for young people who will lead the next generation(5) Create and disseminate cultures through sports and entertainments(6) Improve existing services and create new businesses by utilizing ICT innovation

Social(2) Promote health and productivity management(3) Promote diversity(4) Respect human rights and prevent harassment

Social(5) Cultivate tomorrow's leaders(1) Cut greenhouse gas (CO2) emissions

Environmental protection
Contribute toward a low carbon, circular economy.

(4) Aim for more eco-friendly buildings (green buildings)(3) Use more renewable energy (e.g. solar)
Environmental(5) Produce less waste and recycle more

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

Social(1) Improve employee satisfaction and create a more positive workplace(2) Improve energy efficiency (promote energy saving)

Robust governanceSocialESG Initiatives

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

● Rate of CO2 emissions cuts (target for FY2031 compared to FY2014)(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 businessGovernance*The SDG icon that is placed first is the most relevant to each priority issue.

45

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 2020

46

ESG Initiatives

Special Discussion
I cannot recall any time in my long career—I joined

when selecting potential employers, and there is increased

Hankyu Corporation in 1973, right after Expo 1970 in Osaka—

focus on ESG-related initiatives. Investors, as you say, arewhen the Kansai economy boomed as strongly as it has theseincreasingly aware of the need to look beyond the financial

past few years. I believed that a resurgent Kansai economy

projections and consider a company's essential values, so thewould naturally alleviate the problem of over concentration of

Sustainability Declaration came at just the right time. What did

business in Tokyo, and we thought Osaka's winning the hosting

you prioritize when compiling the declaration?

rights for Expo 2025 Osaka, Kansai, Japan would add further

Sumi

momentum to the Kansai economy.

and other stakeholders. These days, there seems to be a great

YoshitakaSumi

Ability to Spread
the Word about Initiatives is
Vital in the VUCA Era

Our Role is to Inspirea New Generation ofCommunity Builders

At its core is our devotion to providing value to customers

Hosting Expo 2025 is a big deal, isn't it? My

rush of companies shifting from shareholder capitalism to

grandparents lived in Senri New Town; I was excited to havestakeholder capitalism, but taking care of all stakeholders is a

Expo 1970 nearby and went virtually every day.

long-standing tradition at the Hankyu Hanshin Holdings Group.

Sumi

Expo 1970 in Osaka was not a one-off event. It had a

And among them, I believe that our workforce is where

lasting effect, and when Senri New Town was developed, they

everything begins; a more satisfied workforce provides better

left the expo site, monuments, and green space to commemorate

quality services to customers, and more satisfied customers led

it. Similarly, community building on the Yumeshima Island site

to better financial performance and a higher share price. In thatafter Expo 2025 will be just as important. Because it is an island,way, taking care of our workforce results in better returns for

I think it is the ideal setting for a "smart city" concept. The

shareholders.

Umekita Phase II Development Project will be completed in

Yoshitaka

2024, and we dreamed of harnessing this project to boost thetheir employees, for example maintaining employment despite

Kansai economy in tandem with Yumeshima—until COVID-19

the COVID-19 economic downturn, are those that perform

came along.

better when it comes to ESG. Top management can have a

Yoshitakahighly significant effect on the broadening of investors' horizons

We all hope for a swift end to the COVID-19

It seems that companies who take good care ofcarnage.

by explaining the close relationship between financial and non-Sumifinancial KPIs.

That won't happen immediately, but we still have four

years until the Umekita Phase II Development Project iscompleted and another year after that until Expo 2025 in Osaka.
I hope and pray that COVID-19 will end before then.

Ms. Mari Yoshitaka

Kazuo Sumi

Principal Sustainability Strategist &Deputy General Manager of Corporate Planning,

Chairman and Representative Director

Mitsubishi UFJ Research and Consulting, Co., Ltd.

Group Chief Executive Officer

Part-time lecturer, Graduate School ofHankyu Hanshin Holdings, Inc.

Media and Governance, Keio University

Sustainability Declaration Provides
Further Momentum to ESG Efforts
Sumi

Our business has long been founded on a core platformof railway operations, and we have striven to offer services andcommunity building solutions help neighborhoods along ourroutes develop. Perhaps the defining project of our social
contribution activities is the Hankyu Hanshin Dreams andCommunities of the Future Project, through which we seek to
ESG Initiatives

The Aspiration and Passion Behind the Hankyu
Hanshin Holdings Group Sustainability Declaration

protect environments and nurture younger generations. The
project has been going for more than ten years now. Morerecently, in May 2020 we unveiled the Hankyu Hanshin Sustainability
Declaration, which consolidates and adds momentum to ourongoing ESG-related activities. The declaration is a core facet ofour quest for sustainable growth across the whole group, andfits between our Management Philosophy and Long-Term

In May 2020, the Hankyu Hanshin Holdings Group unveiled its Sustainability Declaration. Group CEO Kazuo Sumi spoke to ESG investment
expert Mari Yoshitaka about the declaration's deep foundations, including the development of the Kansai region and the Group's long
history of social contribution, as well as its determination to help achieve sustainable business management.

Management Vision.
Yoshitaka
reticent

In general, Japanese corporations tend to beabout

showing

off

their

initiatives,

but

your

announcement of the Sustainability Declaration was an excellent
way to communicate your values inside and outside the group.

How Will COVID-19 Shapethe Kansai Economy?
Sumi

Today, we face a crisis like none before in COVID-19. I

look forward to hearing your opinions on how companies

47

Hankyu Hanshin Holdings Integrated Report 2020

Sumi

We, too, used to think that these kinds of things were not

worth splashing over the front pages. Now, though, there isshould act in times like these, and what they should be doing interms of ESG.
Yoshitaka

Let me start by asking you your view on the outlook

for the Kansai economy in the wake of COVID-19.

strong interest from investors in these issues, and that's why wedecided to collate our current and historical efforts into a single
declaration.
YoshitakaIt's affecting the job market, too. For instance, more

and more jobseekers consider things like approach to SDGs

Hankyu Hanshin Holdings Integrated Report 2020

48

ESG Initiatives

Sumi

In many countries, most railway companies receive

condominium, it's often the woman who has the final say, and a

Yoshitaka

investor's

woman's perspective is absolutely vital in determining theinitiatives?

perspective, Japan is just about the only place they can invest

balance of tenants in shopping complexes. The same goes forSumi

in a purely private railway, so I am keenly aware that proactive

the Entertainment, Travel, and Hotel businesses, too. In many

only human and are bound to make mistakes. Human error

dissemination of information—including our ESG initiatives—iscases, business proceeds much smoother when we have female

cannot be completely eliminated, so we need safety systems

vital to ensure we are prominent on investors' radars.

employees directly in charge. It might take a little longer to getthat can provide solidity in the areas of uncertainty that

Yoshitaka

I believe that railways are more than just a mode ofmore women into management positions, but we recognize thisinevitably arise in human operations. For instance, I served as atransportation with low environmental impact, and that theis a long-term issue that needs attention now. Indeed, we aretrain driver for a year or so when I first joined the company, andvalue of railway businesses will be widely recognized aroundworking on it, such as by hiring more women and investing morethat experience taught me that we need to do more than justthe world as airlines continue to struggle amid the COVID-19

effort in their development.

exhort people to stay alert and make no mistakes. Only withchaos. And if the Sustainability Declaration succeeds in drawing

Yoshitakaback-up systems designed from objective viewpoints can we

attention to your ESG initiatives, I think the Hankyu Hanshin

workforce for around 30 years.

ensure safety and protect our employees.

Holdings Group will become the focus of much hope andSumi

Yoshitaka

expectation in the community.

for satisfaction across our whole workforce. Although we areenvironmental challenge; it is also a new risk factor that railways

already ranked quite highly on a national scale, I am moremust take into account. We live in an unpredictable age, so it isinterested to know whether we are continually improving every

important for companies to communicate their resilience andyear. I give detailed feedback to group management regarding

flexibility of management. What is your thinking regarding

our performance in the hope that it will nudge them to improve

investment in this area?

awareness and action so that we can constantly energize ourSumiorganization.

of our top priorities. Take flood risk for example: As you say,

injectionsofpublicfunds.

Fromanoverseas

Consideration for Employees'
Health and Happiness Leads toIncreased Corporate Value
Yoshitaka

Overseas investors tend to believe that Japan islagging when it comes to female participation in the workforce
and gender balance among management-level employees.
Sumi

We opened up career-track positions to women back in

1988, not long after the government passed the Equal
Employment Opportunity Act. We have worked hard to boost
female participation in our workforce because they have such alarge role to play, particularly when it comes to the ways inwhich our services are relevant to daily life. Take our Real EstateBusiness for instance: when a family is thinking of buying a

So you’ve been working to develop the female

We have KPIs not only for female participation but also

YoshitakaThat

information—i.e.,regardingyourWhat are some of the specific focus areas of thoseFirstly, we base our thinking on the fact that people are

I feel that climate change is more than just an

Providing safe and disaster-resilient infrastructure is one

Unhindered Communication
between Workers and the Boardroom
Bolsters Governanceusing

global warming is causing a huge increase in sudden, heavy,

feedback to management as a means for driving improvement—

localized rain storms but, traditionally, town planning designs

is the kind of insight that investors in particular rate highly. It's

have not assumed such huge volumes of rainwater. It is not

relatively simple for a company to release concrete information

possible to revamp an entire infrastructure, so we railway

Yoshitaka

regarding the E in ESG (Environmental) because carbon dioxide

operators have to make careful plans to make do as best wehear about your G (Governance).

emissions and water consumption figures are easily quantified.

can until the urban infrastructure catches up. Then there's theSumi

But when it comes to the S (Social), quantitative targets are

impact of COVID-19 to consider. The virus has made teleworking

ensuremuch harder. Many Japanese companies tend to make vague

a permanent fixture of the employment landscape, and it's

Employees can voice their concerns directly to top management

efforts without a defined goal in mind, so telling the narrative of

possible that commuter numbers will not return to pre-COVID

without having to go through HR or general affairs departments.

how ESG initiatives are reflected in management practices andlevels. Ageing and declining populations also mean we must

Back when I was running Hankyu Corporation, I made a point of

how they evolve is an important way of reaching investors.

look conservatively at passenger numbers. I believe that railway

encouraging our new recruits to use the whistle-blowing system

Sumi

Talking of numerical targets, we are working to instituteoperators can only improve productivity to overcome theseif they ever found something they thought was wrong.

a new one: regarding the percentage of employees who smoke.

risks. For instance, we are considering introducing more varied,

Yoshitaka

When new employees can speak their minds toI know from first-hand experience how important it is to maintainflexible working styles for full-time and part-time employees.

those

the

our health; it is the key to our ability to work well and live a

Doing so will enable us to harness more efficiently the strengths

communication that promotes good governance.

rewarding life. A workforce satisfaction score is no use if yourof older people and those who want to work shorter hours.

Sumiemployees are prone to illness.

Yoshitakaas

which we've operated since May 2019, came about because a

YoshitakaA

company

can

boost

diversity

as

well

We've discussed your group's E and S; now let's

One feature of our governance framework is how wetheateffectiveness

very

top,

of

our

that'swhistle-blowing

the

kind

of

system.

unhindered

The Dreams and Communities of the Future SDGs Trains,productivity by providing pathways for older people or thosesection chief reached out directly to me with pertinent

tenet of its management approach improves corporate value

who

information. We were the first railway operator to introduce

through increased motivation and productivity. What's more,

contribution. Not many corporate leaders in Japan can talkrolling

when top executives talk about their regard for their people andmuch about resilience, yet identifying risks and making

message, and it was pleasing to see a bottom-up initiative comeseek to build engagement, that sends a powerful message toprojections is a good way of finding new business opportunities.

to fruition.

investors.

This is another topic that investors would benefit from hearing

A company that makes employee health a core

can't

work

full-time

hours

to

make

a

meaningful

wrappingthat

conveyedan

SDG-conscious

ESG Initiatives

stock

about.

How We Respond to the Many
Environmental and Social Risks
We Face in the Modern Age
Yoshitaka

The Sustainability Declaration mentions the pursuitof safe, reliable infrastructure. Do you focus on that because ofyour position as a railway company?
Sumi

Naturally. Safe, reliable infrastructure is the overriding

concern of any railway business, and it is a vital factor in oursustainable business practices. For example, one of our nonfinancial KPIs is zero culpable incidents in our railway business.

49

Hankyu Hanshin Holdings Integrated Report 2020

The Dreams and Communities of the Future SDGs Trains
Photo: SDGs trains that have been in operation since September 2020.

Hankyu Hanshin Holdings Integrated Report 2020

50

ESG Initiatives

YoshitakaThat's interesting because the medical industry is

Yoshitaka

The fine balance you've achieved in devotion to

attracting attention as a new sustainable business.

keeping your legacy alive and flexibility to respond changes is

Sumi

Given our history, as a corporate group focused firmly on

an attractive combination. I appreciate your willingness to talkthe future, we have always sought to carry on our legacy by

about your vision for the future from a broad perspective at abuilding communities along our routes with particular attention

time when the outlook is unclear. From a long-term investor's

to education, culture, and safety. COVID-19 has brought aboutperspective, it has been very reassuring. Thank you very much.

changes in lifestyles and working practices, and I believe wemust take those developments into account as we consider
how best to build and maintain communities over the long term,
and we must communicate our message as an integral player inthese neighborhoods.

Afterthoughts

Osaka Umeda: The Main Hub of the Hankyu Hanshin Holdings GroupThe essence of corporate branding can be found in Hankyu Hanshin's
long history
Yoshitaka

So, those governance systems not only underpin

Yoshitaka

So, you're taking a broad view of the entire Kansai

sustainable business practices, but they also contribute to aregion.

more open company culture. Those old "siloed" corporate

Sumicultures tend to kill off new ideas and challenges before theyexample of our approach. For a century, their top stars havesee the light of day, but the SDGs Trains are a good example ofworked hard not only to provide new value, but also to nurture

how a proper grasp of the importance of ESG by management

subsequent generation of performers who can sustain theircan lead to progress.

quest. Our raison d'etre is to preserve environments and build

The Takarazuka Revue Company provides a goodcommunities along our routes, and to pass the baton tosubsequent generations who can carry on that work in the

Bringing a Century-long Perspective
to Community Building
Yoshitaka

Japanesecompanies,

perhaps

being

overlyfuture. More so now amid the chaos of COVID-19. But from an
investor's viewpoint, those circumstances are all the morereason to want to know about companies' visions for the future,and to understand what their leaders are doing and why. Whatmessage can you offer your group's stakeholders?
Sumi

Our railway business is still the solid bedrock of ourendeavors, and our mission is to transport people safely anddevelop better communities along our routes. I remember when
Hankyu and Hanshin merged: the media worked themselves
into a frenzy of speculation about whether the erstwhile rivals
could be effective. But if you consider that what really mattersin the railway business is each station's catchment area, then
Hankyu and Hanshin were not true competitors; our real rival is
car traffic. In that sense, I look forward to Hankyu and Hanshin
working as partners to build better communities along ourroutes.

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Hankyu Hanshin Holdings Integrated Report 2020

Yoshitaka
Sumi"Passing the baton," that's a nice way to put it.

When

the

HankyuCorporation's

founder,

IchizoKobayashi, first set up his railway in Ikeda, he decided not only
to generate the electricity needed to run the trains, but also to
power the houses in local neighborhoods and the streetlights.
In that way, he sought to keep communities safe and free fromregarding a company's reasons for pursuing ESG, it also

Sumi impressed me because he frequently spoke not only

speaks to the company's very raison d'etre. When speakingof his own group, but from the broader perspective of theto Mr. Sumi, I was struck by the clear sense of purpose in

Kansai economy as a whole. It was also very clear that the

everything he said. For instance, his passionate talk of

Sustainability Declaration is the backbone that upholds therailway's position in civic society and the long-termgroup's posture toward sustainability, and is a true reflection

significance of transport for members of the community areof the group's long years of hard work in community

clear indicators of purpose, not to mention valuable non-building along its routes. Seen through the lens of afinancial information. Mr. Sumi naturally draws you in to his

conversation about SDGs, the approach to governance andconversation, and talking with him was as enjoyable as itsocial contribution of a group for whom these have always

was meaningful.

been part of the corporate fabric further highlights the solid
footing that underpins them.
Purpose is a vital, and much discussed, concept when
considering ESG. In addition to its obvious significanceESG Initiatives

conscientious, tend to avoid making clear statements about the

future.

I meet many corporate executives in my line of work. Mr.

crime. Our company has always endeavored to carry on that
legacy of community building, and today we contribute not only
to local safety, but also to the furtherance of education andculture. Secure communities are not just about crime reduction
initiatives; nurturing residents' love for their neighborhood isvitally important, too. The community whose people feel asense of belonging will naturally become safer.
YoshitakaThat echoes Goal 11 of the SDGs: sustainable cities

and communities. It is a keen reminder of the proximity ofHankyu Hanshin's mission to the company's SDGs narrative.
Sumi

Another indispensable component of livable communities

is health. Kansai is the focal point of multiple private-public
initiatives in the R&D, new industry development, and social
implementation arenas, aimed at making the region a top runnerMs. Mari Yoshitaka
After working in IT and a U.S. investment banking, helped establish Japan's first ecofund at the Technology and Environment Dept. of the World Bank Group's International
Finance Corporation. Master's degree from the University of Michigan School of
Natural Resources and Environment.
Joined Tokyo-Mitsubishi Securities in 2000 (now Mitsubishi UFJ Morgan Stanley
Securities) as Chief consultant for the Clean Energy Finance Division.
Has consulted for institutional investors, governmental organizations, businesses,
providing research, advice, and lectures on ESG investing and SDG business.
Currently principal sustainability strategist & deputy manager of Corporate Planning at
Mitsubishi UFJ Research & Consulting; and part-time lecturer at the Graduate Schoolof Media and Governance, Keio University.
Temporary member of the Global Environment Committee, Central Environment
Council, Ministry of the Environment.

in advanced medicine and healthcare worldwide. We at the
Hankyu Hanshin Holdings Group are proud to be a part of that.

Hankyu Hanshin Holdings Integrated Report 2020

52

ESG Initiatives

Sustainability Declaration

Comments by external experts in determining priority issues(materiality matrix)*Titles and positions are as of November 2019.

■ I hope the Group will demonstrate the importance of SDGs actions■ The Hankyu Hanshin Dreams and Communities for the Future
Project is a unique, pioneering project

When working to achieve SDGs, it is important to first set targets to be reached in the future andToday, companies are required to show not only the vision of what they hope to be but also thethen think about what should be done now. When targets are set and the progress toward thevision that society will aim at and how they will contribute to realizing that vision. The Hankyu

targets is seen, the awareness within the Group may change and various ideas will emerge from both

Hanshin Holdings Group, mainly in its railway and real estate businesses, creates communities. It is

inside and outside the Group. Some SDGs actions may generate collateral effects. Efforts to address

necessary to first draw an image of the community to be aimed at for 2030 and then show how theclimate change, for example, may lead to ideas for new lifestyles. The Hankyu Hanshin HoldingsGroup has infrastructure for community building, as well as the urban transportation business and theentertainment business, which have a significant public impact. The SDGs-themed rail livery, solar
power generation and recycling of plastic drink containers at Hanshin Koshien Stadium andTakarazuka Revue Company's carbon offset performance have great appeal for many people. I think

Norichika Kanie

Professor, Graduate Schoolof Media and Governance,
Keio University

these are very effective means to demonstrate the importance of SDGs actions, which should beconsider the needs of foreigners, including foreign visitors. Measures for people with disabilities, suchas promoting employment of people with disabilities and installing platform doors, should also be
further enhanced. The Hankyu Hanshin Dreams and Communities for the Future Project and othernew era when customers will demand systems and services in which they can play active roles. It will

Group, balancing the Group's values and SDGs. By doing so, I believe that the actions will be morethen be important to collaborate with NPOs working on local issues as partners in community

sophisticated.

Head (Japan), PRI
Director, CDP Japan

foreign residents than other areas in Japan. Therefore, community building in this area shouldcollaborative initiatives with local communities are very unique and pioneering. We will soon enter aactively employed. The next step is to set targets that are unique to the Hankyu Hanshin Holdings

Michiyo Morisawa

Group will contribute to building such a community. The Kansai Area has a higher percentage ofNoboru Hayase
Chief Executive Officer of
Osaka Voluntary Action
CenterChairperson of JapanNPO Center
Visiting Professor, Schoolof Human Sciences,
Osaka University

building.

■ Group-wide commitment to sustainable community building■ Top management should talk about sustainability

The strength of the Hankyu Hanshin Holdings Group is its capability for sustainable community

The "era of CSR" focusing on the responsibility of companies has shifted to the "era of ESG," wherebuilding within the Group as it covers railway, real estate, and entertainment as its core businesses. If

improved corporate value should improve shareholder value. Now we are moving toward the "era of

the Group develops a model community adapted to climate change, it will be a community of choicesustainable finance," which encourages activities that contribute to building a sustainable society.

from a global perspective, attracting foreign companies and encouraging relocation of corporate

ESG actions will be evaluated from the perspective of future finance, and investors are paying greaterbases. Environmental actions should not be a list of individual measures but have a comprehensive

attention to non-financial information that is related to future finance. Top management is required tostory that covers all of them. The Hankyu Hanshin Holdings Group's community building initiative, forexample, will be highly appreciated if it can be combined with the development of a carbon-neutralcommunity by 2050 declared in the government's program toward the realization of a decarbonizedsociety (announced by the Government in June 2019). I hope that the Group will make effective useof this change as a business chance. Railway, which is powered by electricity, is a business segment

Emi Onozuka
Head of StewardshipResponsibility Group,
Goldman Sachs AssetManagement Japan

talk about sustainability, namely, how they enhance their corporate resilience (to changes) byaddressing sustainability issues and how they continue or change their business models in responseto changes in society. The Board of Directors is also required to monitor whether management
resources are optimally allocated from an ESG perspective, focusing not only on short-term profits
but also on a long-term perspective. Investors evaluate companies based on both EPS (earnings perin which the Group can strongly demonstrate its efforts to cut greenhouse gas emissions. I expect theshare), indicating short-term performance, and PER (price-earnings ratio), indicating the degree ofGroup to take positive actions in this field, such as cooperating with electric power companies for

expectation in the medium to long run. Sustainability actions are effective in improving PER, which

the spread of renewable energy.

should also be explained to investors.

ESG Initiatives■ Workstyle reform from a "gender equality" perspective
When women ease their burden of work to raise their children by taking long childcare leave or
working shorter hours, it will reinforce traditional roles of men and women: men for work and womenfor family. From the perspective of gender equality, both men and women should be able to balance
their working life and family life. To this end, workstyle reform of men is necessary. It is important toprevent the roles of men and women from being fixed by correcting long working hours andintroducing flexible workstyles in terms of working place and time. The Hankyu Hanshin HoldingsGroup's community building initiative can play an important role in workstyle reform. If the Group
proactively places its satellite offices and supports other companies in promoting flexible workstyles,
it will raise the value of those areas as attractive to live in or work in. Also, the Hankyu Hanshin
Dreams and Communities for the Future Project is a wonderful Group-wide project that is effective inmaking the Group employees interested in SDGs and contributes to revitalization of local
communities. Through collaborating with local governments and other companies, employees may
encounter different values, which will raise their motivation for work and promote innovation.

Toko Shirakawa
Journalist on declining
birthrates, author
Visiting professor at
Sagami Women's
University
Private sector member of
the Cabinet Secretariat's
Council for the Realizationof Work Style Reform

Artist's impression of completed Umekita Phase II Development ProjectNote: Proposed as of May 2018, subject to change

53

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54

ESG Initiatives

ESG Initiatives

Working with Industry, Government, and Communities

SDGs Train 2020

— Sending Diverse Messages Aimed at Achieving SDGs with Trains Poweredby 100% Renewable Energy —G overnance
Priority Issue 6

Robust governance
Policies

As part of the Hankyu Hanshin Holdings Group's commitment to creating

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

communities that people will truly want to live in, we have operated theHankyu Hanshin Dreams and Communities of the Future Project since2009. The project, which focuses chiefly on fostering better environments

Basic Approachand people, is one of our efforts aimed at helping meet the SDGs.
Last year, 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 SDGs in cooperation
with the government and the municipalities our trains serve, as well as
businesses and civic groups that are serious about SDGs. In addition, thisyear we are teaming up with the Tokyu Group for SDGs Train 2020, a
series of trains run in cooperation with national and local governments,

Hankyu Corporation

businesses, and community organizations. These trains comprise the latest

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 theprinciples of our Corporate Governance Code, sustaining growth, and enhancing corporate value over the medium tolong term.
(1) We shall respect shareholders' rights and ensure equality.

energy-efficient rolling stock of Hankyu Corporation, Hanshin Electric(2) We shall take into consideration the interests of shareholders and other stakeholders and cooperate with themappropriately.

Railway, and Tokyu Railways, and the energy used to run the trains issourced entirely (effectively 100%) from renewable sources.

(3) We shall disclose corporate information appropriately and ensure transparency.

The front and rear cars of all three companies' SDGs Trains are wrapped(4) We shall ensure that the Board of Directors performs its roles and duties appropriately and ensure advanced
oversight and decision making.

in original illustrations and badged with a common design. Inside, alladvertising space is occupied with posters displaying SDGs and their(5) We shall have constructive dialog with shareholders with a view to sustaining our growth and enhancing corporate
value over the medium to long term.

explanations, as well as the Hankyu Hanshin Holdings Group's SDGrelated initiatives along with those of the government, municipalities, andcooperating businesses. We hope that the Dreams and Communities of the
Future SDGs Trains will lead more people to think about how to achieve
better communities and a better society.

Hanshin Electric Railway

We look forward to leveraging the Hankyu Hanshin■ Corporate Governance System
General Meeting of Shareholders

Dreams and Communities of the Future Project as avehicle for addressing local challenges, fostering new

Appointment/Dismissal

generations of long-term supporters of the Hankyu
Hanshin Holdings Group, and improving brand value.

Corporate
GovernanceCommittee

Advertising space is being used for SDGs messaging

Appointment/Dismissal

Audit & Supervisory
Committee

Directors

Consultation(excluding Audit &Supervisory Committee
Members)

Accounting audit
ReportDirectors

Audits, etc.

(Audit & Supervisory
Committee Members)

Selection/Dismissal/Supervision

Call/Report on
execution situation

Accounting
Auditors (CPAs)

ReportRepresentative Director
CallGroup Management Committee
Participate

Participate(as observer)

ReportStaff of Audit &Supervisory
Committee

ESG Initiatives

The shared SDGs Train 2020 badge and interior poster used by Hankyu, Hanshin, and Tokyu.

Compensation
Committee

Appointment/Dismissal

Board of Directors

Group
Auditing Division

Audit

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.

The Hankyu Hanshin Holdings Group supports SDGs.
55

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ESG Initiatives
Priority Issue 6

Robust governance
Governance Structure■ Overview of Hankyu Hanshin Holdings' and theGroup's Corporate Governance Structure
Hankyu Hanshin Holdings, Inc. is a pure holding company, andthe conduct of operations is basically the responsibility ofGroup member companies. Hankyu Hanshin Holdings' principalrole is supervision and oversight of the entire Group—meaningthat these functions are separate from the conduct of Groupbusinesses.
Through this system, the Company realizes supervision andoversight and enhances the overall governance of the Group
by: retaining the authority to approve the Company's and theGroup's management policies and strategies, and the mediumterm or annual management plans of all core businesses;
requiring timely submission of progress reports by operatingcompanies; and having Group companies obtain approval from
Hankyu Hanshin Holdings before taking actions that affect theGroup's management significantly (for example, investments
above a certain threshold).
With regard to the above matters, the Board of Directors,
which includes outside directors, makes approval decisions andreceives reports. Moreover, to undertake preliminary reviews
the Company has established a Group Management Committee,
which includes representatives of the Group's core businesses.
Further, to ensure transparency in the appointment
and dismissal of the Company's directors and to facilitate
coordination with outside directors, the Group has established
the Corporate Governance Committee, which comprises
standing Audit & Supervisory Committee members, andoutside directors who are independent of the Company, andrepresentative directors. Moreover, to ensure that concretedecisions regarding the amount of director compensation(excluding that of members of the Audit & Supervisory
Committee) under the responsibility of the Board of Directors,
are made based on objective and transparent procedures,
the Company has established a Compensation Committee
comprising the chairman (or the president, in the chairman'sabsence or unavailability) and outside directors who are
independent of the Company.
In addition, as part of efforts to strengthen its overallcapabilities, the Company is strengthening the governanceof funding. Measures include centralizing funding under theCompany and distributing funds to operating companies within
the limits set out in business plans that the Company has
approved.

More Effective and Transparent
Corporate 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
Group and oversight of respective companies by: retaining theauthority to approve decisions regarding the Company and theterm or annual management plans of all core businesses; andrequiring timely reporting by operating companies about Group
companies' significant investments.
In order to reinforce governance and oversight capabilities
and boost decision-making quality, the Board of Directors
is composed of 11 directors, five of whom are independent
directors, including two women. Moreover, the 11 directors
include all three members of the Audit & Supervisory
Committee.*1, 2
The Company's compensation system for directors (excluding
Audit & Supervisory Committee members) further motivatesthem to enhance the Company's corporate value and business
Compensation comprises two elements: basic monetary

Corporate Governance Committee established
FY2016• C harged 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 (currently standing Audit & Supervisory Committee members), and outside officers.

Evaluation of the Board of Directors' effectiveness
FY2017• 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 2020, interviews arepreceded by questionnaires for more effective assessment.

FY2019Abolition of senior advisors system
Abolition of anti-takeover measuresCompensation Committee established• 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 the chairman andoutside officers.

Review of compensation system
FY2020• Stock-based, performance-linked stock compensation system (paid into trust) introduced for the chairman
and president in order to further motivate them to enhance the Company's corporate value and businessperformance, as well as to enhance shareholder value.

Change in legal status regarding audit function (June 17)
FY2021• Became a "Company with an Audit & Supervisory Committee" as part of efforts to bolster the Board of Directors'

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.

■ Membership of the Audit & Supervisory Committee

compensation paid according to position and stock-based,
performance-linked stock compensation paid in trust to
individuals in the posts of chairman and president.

■ Membership of the Board of Directors, etc.
Maximum number of
directors stipulated inarticles of incorporation

No upper limit stipulated.

Term of office stipulated inarticles of incorporation

1 year (2 years in the caseof 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,
number of 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. C riteria for appointment of directors: Criteria for appointment of
directors are stipulated in the Company's articles of incorporation as
follows:    (1) D irectors 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 witha majority of voting rights held by shareholders in attendance,
provided that those in attendance constitute no less than one thirdof all shareholders with voting rights.
    (3) R esolutions on the appointment of directors shall not be conductedby cumulative vote.

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 tothis position

Corporate Governance Committee

To ensure transparency in the appointment and dismissal of
directors and coordination with outside officers, a Corporate
Governance Committee has been established, made up of
three representative directors, one full-time Audit & Supervisory
Committee member, and five independent directors.
In addition to selecting director candidates and providing
advice relating to the dismissal of directors (excluding Audit &Supervisory Committee members), the Corporate GovernanceCommittee serves as a forum to provide information in suchareas as the Group's finances to outside officers.

Compensation Committee

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

ESG Initiatives

FY2018Of the Audit & Supervisory Committee's three members, two areGroup's management policies and strategies, and the medium-

performance, as well as to enhance shareholder value.

■ Timeline of Initiatives for More Effective and Transparent Corporate Governance

Audit & Supervisory Committee and Its Members

procedures, the Company has established a Compensation
Committee comprising the chairman and five independent
directors.
The committee provides advice relating to the Company's
compensation system and its content.

Group Management Committee

The members of the Group Management Committee include
full-time directors and executive officers of the Company, 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.

oversight function and enhance corporate governance.
• Upon that change, the number of company officers was reduced to 11 and the number of independent
directors was made five (including two women) in order to increase the proportion of independent officers.

57

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58

ESG Initiatives
Priority Issue 6

Robust governance■ Ensuring Effectiveness of the Board of Directors
and the Board of Company Auditors
Attendance at meetings of the Board of Directors andthe Board of Company Auditors (FY2020)

Supervisory Committee set-up in order to reinforce that
corporate governance structure and further enhance corporate

Attendance at meetings ofthe Board of Directors

Noriyuki Inoue

Attended 8 of 10 meetings

Shosuke Mori

Attended all 10 meetings

Noriko Endo

Attended all 8 meetings

Name

Attendance at meetings
Attendance at meetingsof the Board of Companyof the Board of Directors
Auditors

Attended all 10
meetings

Attended all 11
meetings

Junzo Ishii

Attended 9 of 10
meetings

Attended 10 of 11
meetings

Michiari
Komiyama

Attended all 10
meetings

Attended all 11
meetings

Haruo Sakaguchi*Fiscal 2020 meetings were technically meetings of the Board of Company
Auditors as the company was categorized at that time as a Company with
Board of Company Auditors under law.

Evaluation of the Board of Directors' effectiveness

The Company conducts evaluations of the board's effectivenessat the board meeting held in April every year.
A summary of the process, items, and results of an evaluationof the effectiveness of the Board of Directors conducted in fiscal
2020 is as shown below.

1. Evaluation process

In fiscal 2020, the board's effectiveness was evaluated byconducting a questionnaire survey regarding the adequacy ofthe board's composition and operations, followed by interviews
with board members based on the questionnaire's results.

changes in the business environment, the Company has decided

We also share relevant information between Group companies,

to abolish anti-takeover measures that have already been set tomaintain high awareness of issues through employee training,

PolicyThe Company's compensation system for directors (excluding
them to enhance the Company's corporate value and businessperformance, as well as to enhance shareholder value.
Compensation comprises two elements: basic monetarycompensation paid according to position and stock-based,
performance-linked stock compensation paid in trust to
individuals 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.

Group member companies. Hankyu Hanshin Holdings' principalrole is supervision and oversight of the entire Group—meaningthat these functions are separate from the conduct of Groupbusinesses.
In addition to this, the Company shifted to an Audit &59

Hankyu Hanshin Holdings Integrated Report 2020

Recognizing the importance of ensuring that the businessmanner, 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 compliancefocused management, including a dedicated compliance office,a Compliance Manual, and compliance training, all aimed atraising awareness of compliance issues throughout the entire
Group.
As part of our whistleblower system, we have a Corporate
Ethics Consultation Desk for quickly bringing to our attention
any incident that may threaten our compliance-focused

Based on the foregoing policies, to ensure that concrete

We also have a Group Auditing Division, which has its own

decisions regarding the amount of director compensation,

dedicated staff and operates under the direct control of thewhich are the responsibility of the Board of Directors, are madepresident. This division establishes regulations and conducts

based on objective and transparent procedures, the Company

internal audits of Hankyu Hanshin Holdings and its Grouphas established a Compensation Committee comprising thecompanies.

chairman (or the president, in the chairman's absence or

To create a structure for ensuring appropriate operations, theunavailability) and five independent directors. The Board ofGroup vests auditors of each Group company with authority

Directors makes compensation decisions after consultation withnot only in accounting but also in operational audits, and at the

the Compensation Committee concerning the compensation

same time provides guidance to smaller Group companies on

system and content of compensation.

Board of Directors' resolutions for the creation of an internal
control system.
With regard to systems for "Evaluation and Auditing of

Other Efforts to Strengthen GovernancePosition regarding strategic shareholdings

The Company acquires shares held for strategic reasons with aand enhancing corporate value over the medium to longcollaborations with partner companies and maintaining
relationships with regional communities.
Individual strategic shareholdings are reviewed forappropriateness each year by the Board of Directors, taking into
account economic rationales such as dividend income. Wherea given holding is deemed no longer appropriate, it is soldprogressively, with comprehensive consideration of factors suchas the Company's financial circumstances and the influence ofstock sales on market conditions.

Corruption Prevention and Compliance
We at the Hankyu Hanshin Holdings Group are constantly
striving to live up to the stakeholders' expectations andbecome a good, trustworthy organization. Our strong focus oncompliance is one of the pillars underpinning our efforts in thisarea.

■ Organizational Initiatives for Better Compliance
We have established a dedicated compliance office in
the Personnel and General Affairs Division to help bolster
compliance groupwide by pursuing three main initiatives as set
forth below.
Moreover, the Board of Directors conducts periodic reviews tomonitor compliance with the Code of Conduct, mainly involving
questionnaire surveys of employees.

1. Compliance Handbook

The Compliance Handbook makes clear to all the Group's
directors and employees that violations of law or social norms,
or actions that betray customer trust, are prohibited, andprovides handy examples of likely scenarios. In this way, themanual is part of our effort to raise awareness of the importanceof compliance.

Internal Controls over Financial Reports," a section of theCompliance Handbook Content

Financial Instruments and Exchange Act, the Company responds

Hankyu Hanshin Holdings Group Management

appropriately by carrying out management evaluations on aconsolidated basis, in line with in-house rules.

term by maintaining business relationships or strengthening

and the conduct of operations is basically the responsibility ofteaming up with outside experts.

operations of the Company are conducted in an appropriate

management. If a serious incident occurs, we promptly set up a

■ Reasons for Adoption of Current Corporate
Governance System

57, Hankyu Hanshin Holdings, Inc. is a pure holding company,■ Basic Approach to Internal Control System and
the Progress of System Development

risk management committee to determine how to respond.

view to building relationships of trust with various stakeholders

and the Group's Corporate Governance Structure on page

Internal Control System

Procedureat board meetings could be more energetic.

As described in the Overview of Hankyu Hanshin Holdings'

If an incident occurs, we take a pan-organization approachin response, bringing in the relevant in-house departments and■ Basic Approach to Eliminating Anti-social Forces
and the Progress of its Development
We have a clear policy of thorough rejection of any involvementwith organized crime groups, companies connected withorganized crime groups, sokaiya racketeers, or other "antisocial
forces" that threaten the order and safety of civic society, andfirm refusal of their unreasonable demands.
To ensure full awareness of this policy throughout the entire
Group, it is instituted in the Basic Policy on the Establishment of
the Internal Control System and clearly set forth in the Hankyu
Hanshin Holdings Group Compliance Handbook distributed to
all Group directors and employees.
In practice, we cooperate closely with lawyers, police, andother organizations, and all Hankyu Hanshin Holdings GroupESG Initiatives

the Medium-Term Management Plan and other matters tabledpertaining to the elimination of organized crime and other■ Compensation of Directors

effective and generally administered appropriately.
Conversely, it was suggested that the board's deliberations on

and participate proactively in community meetings and activities

held in June 2018.

Compensation System

As a result of the questionnaire and interviews, the board's
adequate, and the evaluation concluded that the board was

expire at the conclusion of the General Meeting of Shareholders

antisocial forces.

2. Evaluation items

composition and operations in fiscal 2020 were deemed to becontracts contain clauses banning involvement with antisocial
forces.

annual General Meeting of Shareholders on June 17, 2020.

Audit ＆ Supervisory Committee members) further motivates■ Outside Auditors

After considering recent trends related to such measures andvalue. The shift was approved by a resolution at the 182nd■ Outside Directors
Name

Abolition of anti-takeover measures

Philosophy
Mission, Values, and Code of Conduct
Compliance in the service of customers Compliance in the service of shareholders･ Prohibition of improper･ Customer safety firstaccounting procedures･ Sincere dealings with･ Prohibition of insider
customers
transactions･ Strict rule compliance
Compliance as a social entity･ Appropriate handling of･ Efforts to solve environmental
personal data
problems･ Appropriate disclosure･ Efforts to contribute to society･ Prudent, socially responsible･ Respect for human rights
behavior
Compliance in the workplace･ Appropriate use of social･ Creation of appropriate work
media
environments
Compliance in the service of vendors･ Distinction between public･ Sincere dealingsand private･ Appropriate handling of･ Respect for decision-making
intellectual property
procedures･ Prohibition of involvementwith anti-social forces･ Prohibition of bribes andexcessive entertainment

Hankyu Hanshin Holdings Integrated Report 2020

60

ESG Initiatives
Priority Issue 6

Robust governance■ Raising Awareness Among All Officers and Employees

2. Corporate Ethics Consultation Desk
(Internal Whistle-Blower Procedures)

The Corporate Ethics Consultation Desk comprises an in-housesection and an external section, which is staffed by outside
lawyers. It enables all Hankyu Hanshin Holdings Group officers
and employees, as well as the group's business partners, toreport—anonymously—behavior that violates (or may violate)laws or regulations, or is otherwise unethical.
Sixty-two reports were received in fiscal 2020 from throughout
the whole Group.

We seek to raise awareness among all Group officers andemployees regarding compliance issues through a variety of
training activities and communication as described below.

1. Training• Training upon first appointment to director or auditor position

have an important place in our business operations.

• New recruit training, training upon promotion
at a Group affiliate• On-site training at Group companies

Audit &
Supervisory
Committee
memberReports

communities, shareholders, trading partners, and employees—

Acting on Feedback from Customers

We value feedback from customers, which we receive in via

multiple channels, including our Listening Center and forums
for dialogue with residents' groups from communities along
our railway routes. This structure is designed so that customer
feedback is routinely shared in-house and reflected in ourbusiness.
The Hankyu Railway's incorporates its Transit Information
Center and the Listening Center into its framework for collecting

Shareholder and Investor Relations

and acting on customer feedback.

We have adopted a variety of initiatives to make shareholder

For its part, the Hanshin Electric Railway seeks to act on

meetings more rigorous and make it easier for shareholders to

feedback collected by its public relations office and at its

exercise their voting rights. These include timing meetings tovarious facilities, as well as through its website and the efforts of• Compliance-related serials in Group magazines

avoid scheduling clashes with other companies, using online

its communications staff.

• Compliance-related e-mail newsletter featuring case studies

voting platforms, and improving the voting experience for2. Communication

Audit &
Supervisory
Committee
memberAt the Hankyu Hanshin Holdings Group, we believe thatthe views of our stakeholders—including customers, local• Collective training for Group companies' compliance officers■ Corporate Ethics Consultation Desk

Reflecting Stakeholder Sentiment in Operations

and updates regarding laws and regulations• Compliance-related information posted on the Group intranet

institutional investors.
Moreover, we engage with investors in a variety of ways,
including briefings—attended by the president—for analysts

Reports

Opinions, questions, and other feedback is routed to thepertinent department, which investigates and responds asappropriate, and the case is subsequently used in our quest for
ongoing improvement in our businesses.

and institutional investors regarding the mid-year and yearConsultation
Desk

Reports

President

Directs

Consultation
Desk

Investigates

Pertinent
departments,
group
companies

Reports

President

Approves/
Directs
Demand forcorrection,etc.

Reporting of investigation progress and ﬁndings

Consultation
Desk

Risk Management Structure
We have established a risk management structure to help
maintain the health of the Group's management by preventing
risks from becoming reality, and at minimizing the damage
if they do. Annual assessments are performed for all of theGroup's companies to identify potential risks relating to natural
disasters, public health incidents, accidents, legal compliance,and organizational operation, and to institute appropriate
continuity in any contingency.
To manage risk across the whole group, we have a dedicated

3. Other Initiatives

risk management office focused on broader, pan-organizational

In the case of identification of a major compliance issue duringissues, while individual departments and group companies

the course of an ethics consultation, a risk management

conduct planning and analysis regarding potential issues withincommittee is convened as soon as possible to discuss andtheir own domains. This set-up is designed to enable the correct

decide on appropriate responses.

dissemination of information if an unforeseen incident occurs.

In addition, we are setting up compliance promotion offices

If a serious risk situation materializes, a Crisis Response Team,at major Group companies and appointing "compliance leaders"

headed by the president, is formed to contain the damage

at other companies to ensure our response is on a Group-wide

spreading and minimize the fallout.

responses is, in principle, tabled for the annual general meetingof shareholders every July.

Hankyu Hanshin HoldingsCore companies● 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

Compliance promotion officein business management.

Respecting Stakeholders' Positions

Acting on Feedback from Experts

The priority issues relating to sustainable business practices

set forth in the Materiality Matrix (see page 45) reflect thediverse views provided by a broad variety of experts, including
professors, civic groups, and investors (see page 53).

Realizing our mission to create satisfaction among our customers
and contribute to society by delivering safety, comfort, dreams,
and excitement involves the ongoing pursuit of sustained growthunderpinned by an active commitment to ESG.
In May 2020, we launched the Hankyu Hanshin HoldingsGroup Sustainability Declaration (see page 43), a clear
indication of how we intend to contribute to more sustainable
use of resources across society. The declaration sets forth ourdetermination to ramp up ESG initiatives, to further solidify
the relationship of trust we enjoy with customers, local
communities, shareholders, trading partners, employees, andother stakeholders, and to use the Hankyu Hanshin HoldingsGroup's businesses as a vehicle for overcoming the challenges
we all face as a society.
Our social contribution activities, such as environmental andcommunity action, have benefited from the institution of a clear
Group policy and the establishment of a dedicated department

ESG Initiatives

These principles and actions are prescribed in our Risk
Management Regulations, and a report on risk analyses andOverview of Group ComplianceGroup Planning Division to respond to investors' inquiries. The
feedback we get from investors is shared in-house and reflected

responses to different scenarios in order to ensure businessbasis.

end results, and dedicated investor relations staff in thewithin the Personnel and General Affairs Division, and our efforts
in this area are guided by the Sustainability Declaration.
See the Hankyu Hanshin Holdings website for details.

Internal whistle-blowing, responsible
for planning and organizing seminars
and other awareness-raising activities

Other Group companies
Complianceleaders
Liaise with compliance departmentsof higher-level companies

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62

ESG Initiatives

Directors and Audit & Supervisory Committee Members
As of June 17, 2020

Directors

Kazuo Sumi

Chairman and Representative Director,
Group Chief Executive Officer
1973
2000
2002
2003
2005
2006
2014

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)2017 Chairman, Group CEO, Hankyu Hanshin
Holdings, Inc. (Current position)

Directors, Audit & Supervisory Committee Members

Takehiro Sugiyama

President and Representative Director
1982
2005
2006
2006
2007
2016
2016
2016
2016
2016
2017
2017
2018
2019

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 Travel International Co., Ltd. (Current position)
Director, Hankyu Hanshin Express Co., Ltd. (Current position)
President, Hankyu Corporation (Current position)
President, Hankyu Hanshin Holdings, Inc. (Current position)
Director, Hankyu Hanshin Properties Corp. (Current position)
Director, Hankyu Hanshin Hotels Co., Ltd. (Current position)

Masao Shin

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)

Masayoshi Ishibashi

Junzo 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)2017 Executive Vice President, 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,
Hankyu Hanshin Holdings, Inc. (Current position)

Director, Audit & Supervisory Committee
Member (Outside director*)
Prosecutor
Prosecutor, Supreme Public Prosecutor's Office
Chief Prosecutor, Saga District Public Prosecutor's Office
Chief Prosecutor, Kobe District Public Prosecutor's 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)2018 Director, Hankyu Hanshin Properties Corp.
(Current position)*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
Name

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.

2014 Chairman and Chief Global Group Officer,

DAIKIN INDUSTRIES, LTD. (Current position)

Research Institute, the University of Tokyo

2015 Project Professor, Graduate School of Mediaand Governance, Keio University

2019 Director, Hankyu Hanshin Holdings, Inc.

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 Exchange's 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 Exchange's independence requirements,
and there is no risk of any conflict of interest with general shareholders.

2020 Project professor at the Keio University

Global Research Institute (Current position)

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

(Current position)

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 Exchange's independence requirements,
and there is no risk of any conflict of interest with general shareholders.

(Current position)

Yoshishige Shimatani
Director (Part-time)

Noriyuki Inoue

Representative director for many years at DAIKIN INDUSTRIES, LTD. Also served as vice-chairmanof Kansai Economic Federation. Appointed for his wealth of management experience, perspectivefrom 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 Exchange's independence requirements,
and there is no risk of any conflict of interest with general shareholders.

Director (Outside director*)(Current position)

Reasons for appointment

ESG Initiatives(Current position)

Director (Outside director*)

Audit & Supervisory Independent
Committee Member
officers

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)

Michiari
Komiyama

A member of the legal profession who has served in important positions, including chiefprosecutor of the Kobe District Public Prosecutor's 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 Exchange's independence requirements,
and there is no risk of any conflict of interest with general shareholders.

President and Representative Director, H2O
RETAILING CORPORATION (Current position)2020 Chairman, Hankyu Hanshin Department Stores, Inc.
(Current position)

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64

ESG Initiatives

S ocialPriority Issue 1

Safe, reliable infrastructure■ Safety on trains and at railway crossings

Project Themes (1)Eliminate accidents and improve safety atrailways and commercial facilities

Hankyu Corporation
All our trains are equipped with emergency call units that allow
on-board passengers to report emergencies to the train crew.

Policies

1000-series and 1300-series trains have larger partitions on seat

■ Platform safety
Our systems are geared for swift response if a person should

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

ever fall into the tracks. These include special detection matsends and vertical handrails to help prevent people from fallingand colliding when trains brake suddenly.

on track areas and emergency train stop buttons mounted on
platforms to alert train drivers and automatically engage theAutomatic Train Stop (ATS) system. At the same time, flashinglights and alarms on the platform alert train crew and station

Non-Financial KPIs

staff to the emergency.

Zero culpable railway incidents (Hankyu Corporation, Hanshin Electric Railway, Kita-Osaka Kyuko Railway, Nose
Electric Railway)

Eliminating Railway Accidents throughGood Policy
In order to carry out their mission of providing safe
transportation services, our railway companies observe strict
safety policies, work toward safety-related targets, and endeavor
to maintain resilience and readiness to implement day-to-day
safety measures and ensure safety in emergency situations.

Stations with emergency train stop buttons: All stations

Main Points of the Code of Conduct for Safe Transportation

・ Ensure safety

・ Comply with laws and regulations
・ Be aware of operational conditions, ensure equipment safety
・ Perform checks, prioritize safety above all else

Hanshin Electric Railway

for transportation safety.

blocked, and crossings on all our routes have emergency
PresidentGroup Safety Management
Promotion Committee

Directors
General Manager of Urban
Transportation Headquarters(Chief Safety Management
Officer: Director)

Business Division Safety
Management Promotion
Committee

Deputy General Manager ofUrban Transportation
Headquarters
General manager,
Railway Operations
Dept.
(Operation
Manager)

General manager,
Railway
Maintenance Dept.
(Chief Civil Engineering
Facilities Manager)

General manager,
Railway
Maintenance Dept.
(Chief Electrical
Facilities Manager)

General manager,
Railway
Maintenance Dept.
(Chief Rolling
Stock Manager)

Manager, Takarazuka LineOperations

Manager, Kyoto LineOperations

Investigative Committee to Improve
the Safety and Security of Operations

Deputy Operations
Manager(Crew Training Manager)

Deputy Operations
Manager(Crew Training Manager)

Deputy Operations
Manager(Crew Training Manager)

Investigative Committee for
Measures to Prevent Accidents

A cab fitted with a driver's safety device

Hankyu Corporation installed screen doors on platforms 3, 4,
and 5 of Juso Station in fiscal 2019, and is currently working
to install them at Kobe-sannomiya Station with a view to fulloperation in the spring of 2021 (partial operation will begin

2022, and Osaka-Umeda Station by the end of fiscal 2024.
on the platform ends (where trains do not stop) to prevent

PDCA cycle and constantly seeking improvements.

people from accidentally falling onto the tracks.

General manager,
Urban Transportation
Planning Dept.

Operation Manager
General manager,(General manager,
Electrical Dept.
Transportation Dept.)

Chief Driver Training Managers(Eastern Train Operation Director)(Western Train Operation Director)

Our train driver and conductor training facility has a Safety
Awareness Room, where trainees learn about—and from—past incidents. In November 2017, the room was completely
rearranged around the concept of completely eliminating
culpable accidents.

Ishiyagawa Marshaling Yard,
which was damaged in the

Railway Safety
Committee

disaster. At this service, we
reaffirmed our determination

Safety Officer(General manager, Urban
Transportation Planning Dept.)

operations.

Hankyu Corporationof 25 years since the Great Hanshin Earthquake with a prayer at the

Urban Transport
Operation Division

related to safety and apply them rigorously and sincerely in its■ Fostering a Culture that Puts Safety FirstAt 5:46 a.m. on January 17, 2020, we commemorated the passing

Directors

Chief Safety
Management Officer(General Manager of Urban
Transport Operation Division)

The light signal send and receive units of alevel crossing obstacle detection system

Hanshin Electric Railway

President

The Company shall comply with all laws and regulations

Hankyu Hanshin Holdings Integrated Report 2020

■ Preventing platform falls

safety initiatives into practice through rigorous application of theCompliance with Laws and Regulations

65

Stations with emergency alarm buttons: All stations

In addition, both Hankyu and Hanshin have protective barriers

safety is the primary mission of a railway business.

appropriately.

Stations with fall detection mats: 5 stations (Kuise, Mikage,

We seek to achieve a higher level of safety by putting our many

understanding that putting the highest priority on ensuring

buttons, thus alerting oncoming trains to potential danger.

Hanshin Electric Railway

platform screen doors at Kobe-Sannomiya Station in the spring

Hanshin Electric Railway

possible to ensure safety of operations, based on theto ensure that safety management systems are operating

A sign for an emergency train stop buttonin October 2020). Hanshin Electric Railway has plans to install

The president, officers, and employees shall do everything

The Company shall implement constant verification procedures

An emergency
train stop button

Nishikujo, Kujo, and Dome-Mae)

Manager, Kobe LineOperations

Maximum Priority on Safety

Maintenance of Safety Management Systems

All level crossings accessible to road traffic are fitted withobstacle detection systems to sense when the tracks are

ESG Initiatives

・ Continual improvement and advancement

switch is released.

cycle as a means of seeking ongoing improvements in our quest

・ Respect for human life
・ Swift and accurate communication

Hanshin Electric Railway

emergency brake is automatically activated as soon as thesystem shown below to run the PDCA (plan, do, check, act)

General manager, Urban
Transportation Planning
Dept.
(Head of Investment and
Financing Team)

Expanded partitions and horizontal handrails

a driver becomes incapacitated while the train is moving, theWith Safety Management Regulations in place, we use theHankyu Corporation

An emergency call unit

All trains are equipped with driver's safety devices so that if

Hankyu Corporation■ Company-Specific Safety Policies

All in for safety, all in for customer satisfaction

Stations with fall detection mats: 4 stations with sharply curved
platforms■ Safety Management System*Safety reports are available on each company's website.

Safety Slogan

Hankyu Corporation

General manager,
Rolling Stock Dept.

General manager,
Engineering Dept.

As of April 1, 2020

Platform screen doors at Hankyu Juso Station

Protective barriers at Hanshin
Kobe-Sannomiya Station

to pass on the lessons
gleaned from the experience
to subsequent generations,

Further protection is afforded by outer diaphragms covering theand our commitment togangway connections between cars on Hankyu and Hanshin

every railway company's

trains. The diaphragms prevent people from accidentally falling

overriding care: ensuringfrom platforms onto the tracks through the gaps between cars.

safety.

The president leads the prayer at the
memorial service

Hankyu Hanshin Holdings Integrated Report 2020

66

ESG Initiatives
Priority Issue 1

Safe, reliable infrastructure
Project Themes (2)Promote actions to prevent/reduce accidents
and respond promptly and properly to accidents
if they occur

Hanshin Electric Railway

Major Earthquakes and Tsunami

Meteorological Information Systemand tsunami, we have posted the locations of local evacuation

To prepare—and help others prepare—for a major earthquake

A meteorological information system installed in the wake of
the Great Hanshin Earthquake enables us to collate a variety
of data relating to weather along our routes, which we use to
make train operations safer in extreme weather events.

Hankyu Corporation

The weather information terminals in our Operations Centerare designed to offer maximum support to staff. For instance,

Earthquakes

When our earthquake early warning system forecasts anearthquake likely to register 4 or more on the Japanese shindo
scale of seismic intensity, or if an earthquake of that scale isdetected by our seismographs, trains are automatically signaled
to stop immediately. We added four more seismographs infiscal 2020, bringing the total to seven, and have adopted anearthquake information distribution system for railways.

the y

are

pro grammed

We endeavor to ensure safety during typhoons and severerain storms by directing trains to reduce speed or stop as
appropriate based on information obtained from the rain gauges,
wind gauges, and water meters installed along our routes, aswell as weather information from the Japan Meteorological
Agency. Since fiscal 2014, we have used meteorological data
provided by a private-sector company to be better equipped
to deal as well as possible with sudden, extremely localized
rainstorms.

Natural Disasters of Extreme Severity: Minimizing Risks
and Responding FasterAs part of our efforts to minimize the risks inherent innatural disasters, we undertook a program of works in eightlocations between fiscal 2018 and fiscal 2020. These included
improvements to prevent landslides, removal of block walls, andShinyodogawa Bridge, evacuation of passengers will be madesmoother with ladders for alighting from the train, as wellas markers on the bridge indicating direction and remaining
distance.
The Noda Hanshin Building (i.e., the Wiste shopping
complex) has been designated a tsunami evacuation site

restrictions

when weather data exceeds
acceptable

Project Themes (3)parameters,

Establish safe and comfortable facilities and services
that satisfy the needs of a diversity of people

and can display route maps
designed

to provide anaffected areas.

The feed from a camera monitoring
river levels

Earthquake Early Warning System

Complementing the meteorological information system isa system, built and launched in August 2007, to receive
earthquake early warnings distributed by the Japan
Meteorological Agency. If the earthquake early warning system
detects an earthquake likely to register 4 or more on theJapanese shindo scale of seismic intensity, or if an earthquakeof that scale is detected by our seismographs, trains areautomatically alerted, thus allowing them to avoid danger byimmediately stopping or decelerating, and thereby minimizing
damage.
In October 2018, the system was upgraded to make itcompatible with "propagation of local undamped motion" (PLUM),
a new, more precise method of seismic wavefield estimation.

A station local area map

A marker on the Shinyodogawa Bridge

Natural Disasters of Extreme Severity

When a natural disaster occurs, swift resumption of services
after the all-clear is vitally important. We are reviewing oursystem for resuming services after an earthquake or similar
event. For instance, more seismographs along our routes
provides greater precision so service suspensions can beapplied in more tightly focused sections. Meanwhile, expanding
level crossing safety inspection training to include technical staff
enables us to dispatch inspectors more efficiently and thereby
speed up the resumption of services.
Elsewhere, we have an official Twitter account dedicatedto train operating status information that allows us to provide
up-to-date information if, for example, trains are delayed. And
in March 2019, we introduced a system for automated on-earthquake-proofing overbridges and stations. Risk-reduction isboard announcements in multiple languages—including somealso a part of our operations, and can be seen in initiatives such

emergency situation announcements—beginning with theas pre-emptive suspension of

Hanshin Namba Line.

train services when typhoons■ Improved Disaster-Resilience of Commercial Facilities

are approaching.
We are also working to

Umeda Bo-sai Scrum

achieve swifter response in

Corporation, Hanshin Electric Railway,from trains stranded between

JR West, and GRAND FRONT OSAKA
A trackside embankment isstrengthened to prevent landslides

An earthquake early warning system terminal

TMO.
The "scrum" seeks to foster teamwork
between people, businesses, andareas—such as by disseminating■ Safety-Related Capital Investment over the Past Three Years
Hankyu Corporation

15

4.7

4.3

4.7

8

13.1

14.1

14.4

2

1.4

2.3

2019

Hankyu Hanshin Holdings Integrated Report 2020

2020

(FY)

order to encourage people to help

improvement programs in place to ensure people of different
needs and abilities can use stations and trains comfortably. We
aim to establish our stations as local hubs for the movementof people, to which end stations are being upgraded foruniversal accessibility based on the Act on Promotion of SmoothTransportation, etc. of Elderly Persons, Disabled Persons, etc.
and the policies of local governments along our routes.
The Hankyu Hanshin HoldingsGroup was an early adopter ofuniversal design. Hankyu Itami
Station, for instance, which wasdestroyed in the Great Hanshin
Earthquake of 1995, wasrebuilt with facilities that wereconsidered groundbreaking
then, including audio guidance
for blind people.

A new elevator installed in Hankyu Hanakuma
Station as part of its universal design upgrade*For details on Hankyu's and Hanshin's initiatives regarding accessibility, see
their respective websites for their Plan on Initiatives for Improved Mobility
compiled under the Basic Act for Persons with Disabilities.

5.8

4.5

Tsunami Preparedness: Commercial Facilities as
Designated Evacuation Sites

4.8

We have entered into an agreement with Osaka City to allow
some of our commercial facilities to be designated as temporary

2018

2019

2020

Staff and Crew Qualify as Service Care-Fitters

Hankyu Corporation is enhancing not only its facilities but
also its intangible features regarding accessibility. It offers abroad array of training and encourages staff to develop theirknowledge and skills pertaining to caring for people withdifferent needs by qualifying as Service Care-Fitters.
Hanshin Electric Railway, too, has made Service Care-Fitter
qualified railway staff a focal part of its efforts to improvecustomer satisfaction since 2013, and now, all station staff andtrain crew have obtained Service Care-Fitter qualifications. We
will continue to strive for ever-higher levels of customer comfort.

Women-Only Train Cars

0.7

0

2018

for Umeda-area office workers—in
each other in times of strife.

4

0

67

and holding disaster training seminars
Safety-related capital investment
Other capital investment in railway businesses(¥ billion)

6

10
5

information through digital signage
Hanshin Electric Railway

Safety-related capital investment
Other capital investment in railway businesses

20

Hankyu Corporation and Hanshin Electric Railway both have

ESG Initiatives

the Umeda Area Management Alliance comprising Hankyu

quicker evacuation of passengers(¥ billion)

Better Accessibility to Stations and Commercial Facilities

Umeda Bo-sai Scrum is the disaster preparedness unit ofdisaster situations, such as

stations.

Namba Line ever needs to make an emergency stop on theto automatically suggest
operational

intuitive overview of theExtreme Wind and Rainpoints at all our stations. And if a train on the Hanshin(FY)evacuation sites in a tsunami or flood situation.

We have designated women-only train cars to enable female
passengers to travel in comfort and security.
Hankyu Corporation：Kyoto Line, Takarazuka Line, Kobe Line
Hanshin Electric Railway：Main Line limited express train between
Mikage and Osaka-Umeda stations

Hankyu Hanshin Holdings Integrated Report 2020

68

ESG Initiatives

S ocialPriority Issue 2

Thriving communities
Policies

Project Themes (3)Project Themes (5)Create a line-side environment that makes it
easier for women to work and raise children

Offer services that satisfy the needs of foreign
visitors/residents

Helping Women Fulfil Their Potential

Hanshin Electric Railway is serious about helping women

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

who live along its routes fulfil their potential. The company

The companies of our Urban Transportation Business are working

has initiated a project for that purpose, which includes theto improve service quality for non-Japanese people, including

Cheer*full Cafe website. The site presents interviews withmultilingual signs and other information at stations and facilities.

fabulous women living and working along Hanshin routes,

Project Themes (1)Develop a good living environment (providing good
residences, creating green spaces and public spaces,
establishing cultural and educational facilities, etc.)

Holdings Group has been a core player in the project since
its beginning, with significant land holdings. Saito has many
noteworthy features that make it a place to live in safety
and comfort: a learning environment typified by a combined
elementary and junior high school noted for its small class sizes;
an exclusive patrol service for added security; and high-grade

Community Building Near Nishinomiya-kitaguchi Station

Hankyu Nishinomiya Gardens opened adjacent to Nishinomiyakitaguchi Station in 2008. The nearby learning facilities (Konan
University, the Kwansei Gakuin University Law School, etc.) andthe Hyogo Performing Arts Center adds cultural and academic
enrichment to the area.
Nishinomiya-kitaguchi has ranked top in the Most Desirable
Neighborhood in Kansai survey* for five years in a row.
*T he Most Desirable Neighborhood survey is a questionnaire ofprospective condominium buyers conducted by the "Major 7": Sumitomo
Realty & Development, Daikyo, Tokyu Land, Tokyo Tatemono, Nomura
Real Estate Development, Mitsui Fudosan Residential, and Mitsubishi
Estate Residence.

disaster preparations.
Another advantage of Saito is that solid town planning has
ensured an attractive environment, including broad footpaths,
overhead power lines). Indeed, Saito has been recognized for
its environmentally considerate design on multiple occasions,
including selection as a "model neighborhood design for
countering global warming and 'heat island' effect" as part of thegovernment's Urban Renewal Project for 2005.

resilience.

while Hanshin uses app-based translation services in its devices,parameters for playgroundwhich are available at 11 stations.

equipment and station

To help tourists stay connected, not only do we offer Hankyu

names. Hanshin also holds

Hanshin Welcome Wi-Fi, a public network, along Hankyu andfamily-friendly events to

Hanshin routes, but we also work in partnership with otherproviders to ensure the utmost convenience.

promote interaction andcommunication.

The Cheer*full Parent-and-Child Café
event for families

Project Themes (4)Promote measures to extend the healthy lifespanof the elderly

rehabilitation services for theThailand won the Gold Award in the Housing and Architecture
category of the International Association for Universal Design's
2019 International Design Awards.
Our expertise in creating high quality living environments,
demonstrated here by the Geofit+
system of incorporating local
people's views to offer residencesthat meet real needs wererecognized.

Saito: A Shining Example of Our Ever-Evolving Community
Building Prowess
Saito (International Culture Park) is a private-public partnership

new town construction project on the hills straddling Ibaraki
and Minoh cities in Osaka Prefecture. The Hankyu Hanshin

69

Hankyu Hanshin Holdings Integrated Report 2020

A station staff member uses a portable device
to assist a customer in another language.

elderly. Supported and guided
by trained staff, customers use

Project Themes (6)exercise machines to maintain andEnhance collaboration and partnerships with
universities, research institutions, ventures,
local communities, etc.

build up their strength to manage
Townscape of Saito, designed to maintain an attractive view

Project Themes (2)Develop and expand commercial/business areas
where people communicate with each otherthe different physical movementsof day-to-day life. In this way, we
seek to enable seniors to leadactive, rewarding lives in the

Support for Start-Ups

communities they know and love.
A customer does physicalrehabilitation exercises

The Geofit+ Stage initiative for condominiums developed
jointly by Hankyu Hanshin Properties and Sena Development of

The Hankyu Hanshin
Welcome Wi-Fi logo

Designing Offices Conducive to Communication andInteraction

Disseminating information through Well TOKK and
Hankyu Hanshin Wellness Plus

operated by the Hankyu Hanshin Holdings Group in the Umeda

magazine full of health-related information for residents ofarea more opportunities to interact beyond their own companies'

communities along Hankyu and Hanshin routes and, of course,

borders through Hankyu Hanshin Workers' Service, with initiatives

other passengers. Well TOKK is available for free at all Hankyu

such as a variety of events, and even an SNS app, TSUNAGU forstations and major Hanshin Stations.

We endeavor to provide people working at offices owned or

Since April 2016, we have published Well TOKK, a quarterly

Hankyu Hanshin workers.

We also operate Wellness Plus, a website throughWhen its construction

which we provide handy information—in partnership withis completed, Osaka

local governments, medical

Umeda Twin Towers

institutions, universities, andSouth will featurebusinesses along our routes—

WELLCO, a floor

to help people build anddedicated to the officemaintain their health.

The Hankyu Hanshin Holdings Group is a steadfast supporter of

ESG Initiatives

natural environment; and Sonae, for disaster preparation andHankyu stations have portable devices with translation software,that allows searches withan adult day care center specializing in half-day physicalconcepts: Stage, in which fixtures and fittings are designed
focuses on living comfort; Eco, for better consideration of thelocal finds, and a park guide

Ikiiki Life Hankyu Hanshin operates Hanshin Ikiiki Day Service,designed to better equip Geo-brand condominiums to fit thewith progress through different life stages in mind; Days, whichto translate when assisting customers in other languages. All

A healthy body and healthy mind make for a happier life

Geofit+ is a residential planning and development project

offerings. To that end, Geofit+ is based around four main

Elsewhere, both Hankyu and Hanshin use portable devices

articles about interesting

ample greenspace and parks, and underground cables (noOffering Better Quality Lifestyle Solutions throughGeofit+cycle of life, such as by reflecting customers' views in ourMultilingual Information Display, Free Wi-Fi, and Other
Services Aimed at the Foreign Community

new business ventures. One example is GVH#5, a membershipbased facility we established in 2014, offering 24-hour access to
office and meeting space just two minutes' walk from Hankyu
Osaka-umeda Station.
Since 2019, we have organized Startupbootcamp Scale
Osaka, the local edition of Startupbootcamp, one of Europe's
largest acceleration program, as part of a conglomerate of seven
Japanese companies including Hankyu Corporation (represented
in this program by Hankyu Hanshin Properties).

worker wellness.
An event for interaction among office workers

Well TOKK magazine

Participants in Startupbootcamp Scale Osaka

Hankyu Hanshin Holdings Integrated Report 2020

70

ESG Initiatives

S ocialPriority Issue 3Life designs for tomorrow

Project Themes (3)Tigers Academy

Propose products/services that respond to diverse
values and create comfort and excitement

a form of good, healthy entertainment inspiring not just joy

The Hanshin Tigers endeavor to use professional baseball as
but also an emotional connection. The Tigers Academy wasestablished in 2018, incorporating a baseball school and a

Policies"Stay-and-donate" accommodation plans

dance school for children up

include a contribution to a facility that supports children in need.

school age. The academy

Hankyu Hanshin Hotels offers "Stay-and-donate" plans that

Promote refined and inspired lifestyle solutions for a better tomorrow.

One example of our multiple plans iswonderful baseball and sport inwhich includes a donation to a facility

Propose products/services that help realize alifestyle in harmony with nature

Eco-Friendly Toilets to Protect World Heritage Sites andOther Tourist Destinations

As part of its quest to protect world natural and cultural
heritage sites and other tourist destinations, Hankyu Travel

Green Tourism and Volunteer Tours

tours, in which employees travel to picturesque destinations and(some donations madeSince 2011, Hankyu Travel International has organized volunteer
help clean up the local area and protect the local environment.
These tours were opened to the public in 2018, and have alreadyproved very popular among participants.
Past tours include: Clean-up at Mt. Fuji (Shizuoka Pref., since2015); clean-up at Miho no Matsubara pine grove (Shizuoka Pref.,2019); clean-up at Amanohashidate (Kyoto Pref., 2011 and since2018); clean-up at Ryozenji Temple, first stop on the 88-temple
pilgrimage route of Shikoku Island (Tokushima Pref., 2019); cleanup along the Minami Aso Railway (Kumamoto Pref., since 2017)

installation in six locations

2019, 902 rooms were reserved using
hotels.

Our hotels offer "Stay-anddonate" accommodation plans

Propose products/services for young people
who will lead the next generation

Eco-friendly toilet sites:
Yakushima Island, Kumano
Kodo Pilgrimage Route,

Robotics Programming Training at ProgLab

Shiretoko Peninsula, Rebun
Kushiro Marshland

A child at baseball school

this plan at 11 of our directly-owned

Starting in fiscal 2021, programming is now a compulsory
A block of eco-friendly toilets

Project Themes (2)subject in Japan's elementary school education. ITC educators
ProgLab offer an original curriculum of robotics programming
at locations nationwide, as well as classes at elementary andPropose products/services that lead to revitalizationand promotion of local communities and cultures

junior high schools. By teaching SDG-conscious programming
aimed at solving society's various challenges—e.g., how to makerobots to clean up marine trash—ProgLab seeks to arm today's
kids with the skills they need to

Planning Tours Together with Local Governments
Clean-up tour
participants at Mt. Fuji

old (vegetable-based) cooking oil for recycling into bio-diesel
to power Hankyu buses—anthe development of a thriving local community.
Elsewhere, we participate in private-public-academic projects todevelop local communities
throughtourism a topic

for university fieldwork,
invigorate

tourist attractions.

to the quality and theenvironmental credentials
A bus running on bio-diesel

Getting a Feel for the Great Outdoors at Mt. Rokko

71

incorporate local agriculture into tourism initiatives to support

local

endeavor to develop new

to make improvementsof Geo condominiums.

and the Nemuro area in Hokkaido, the company also enteredlong-term residence, and2013. We will continue

University students undertake fieldwork
aimed at developing local communities

Rediscovering Delights along Hankyu Routes throughWalking Tours

Hankyu Walking Tours are popular events for people to discover

The cool climate atop Mt. Rokko, some 850 meters above sea

or rediscover the delights of areas along Hankyu routes. The

level, makes Rokkosan Country House and other leisure facilities

tours are held in conjunction with local associations andthe ideal place for outdoor activities like strawberry picking involunteer tour guides. Since April 2020, a special walking app

the summer.

has offered customers a new enjoyable way of participating.

Hankyu Hanshin Holdings Integrated Report 2020

via a phone app. Units last for at least six years—no battery
recharging or fiddly operations are required. As of March
2020, some 1,300 schools and pre-schools have adopted
Mimamorume.
A questionnaire of Mimamorumeusers revealed that 94.6% felt
assured by the system, while
receiving emails confirming theirchild's arrival at and departure fromagreement with the Nagashima town council in Kagoshimacommunities by promoting

Design Award in fiscal

on school gates enable tracking of their comings and goings

school was not only reassuring but

help

initiative that won a Good

chips are inserted into pupils' schoolbags and sensors mounted

A ProgLab class in progress

A Mimamorume IC chip inserted
into a schoolbag

Customer Feedback

Project Themes (5)Create and disseminate cultures throughsports and entertainments

ESG Initiatives

cooking oil collection sites so that residents can donate their

Applications include a school safety tracking system, where IC

also nurtured parent-child bonds.

into a deal with Tsuruoka City, Yamagata, in July 2019 togeneration fuel cell systems. Geo complexes also have used

Mimamorume harness the strengths of ICT for better protection.

them into products and destinations that help invigorate local

have featured laminated low-emissivity ("low-E") glass, LED lights,
vehicles, solar power generation, and Ene-Farm home electricity

Mimamorume: Hankyu Hanshin's Safety Tracking Service

local governments to uncover new tourism assets and parlay
communities. For instance, in addition to an existing partnershipfacilities for harvesting and selling excess electricity from electric

Improve existing services and create new
businesses by utilizing ICT innovationsome guardians commented thatbuild their own better future.

Hankyu Travel International works in close cooperation with

Geo Condominiums Become Even More Environmentally
Considerate

Since 2011, Hankyu Hanshin Properties' Geo condominiums

Project Themes (6)Project Themes (4)jointly with others).

Island, Ogasawara Islands,

general can be.

supporting children with cancer. In

International has donated eco-friendly toilets, which use special
microorganisms inside sawdust to biodegrade waste, forseeks to promote baseballby showing kids just how

the Child Chemo House Support Plan,

Project Themes (1)to and including elementary

Hankyu Tops Prominent Japanese CS Survey 11 Years in a
Row; Takarazuka and Hankyu Travel International Place 2nd

In the fiscal 2020 edition of the Japanese Customer Satisfaction

Takarazuka Revue, the Theatrical Culture Evangelists

Index* (JCSI; run by the Japan Productivity Center), Hankyu

In addition to regular year-round performances at Takarazuka

Corporation was rated top in the suburban railway category.

Grand Theater and Tokyo Takarazuka Theater, the Takarazuka

Indeed, Hankyu has placed first in this category in all 11 years

Revue Company also tours the nation, holding stage performances

the JCSI has been conducted. Elsewhere, the Takarazuka

and cinema-based live viewings in around 20 cities every year. The

Revue Company placed second in the overall corporate andcompany also undertakes overseas tours on occasion.

brand category and Hankyu Travel International second in theSpecially prominent are the company's exclusive performances

travel category. These results indicate that the Hankyu Hanshin

and events for 150 schools and other youth audiences, which

Holdings Group's various businesses continue to earn the

result in an annual youth audience of around 30,000. Taking

support of their customers.

the Takarazuka Revue to thepeople creates opportunities
for audiences of diverse ages
in many different regions andcountries to encounter andenjoy performing arts.

Photo provided by: Toho Cinemas Shinjuku*T he JCSI is one of Japan's largest customer satisfaction surveys.
Conducted by the JPC's SPRING (service productivity & innovation forgrowth), the JCSI collects responses from more than 130,000 users
and applies statistical methods to evaluate companies and brands. The
fiscal 2020 index gauged 458 companies and brands in 38 industries on
six criteria—customer expectations, perceived quality, perceived value,customer satisfaction, intention to recommend, and loyalty—which were
measured across six surveys held throughout the year.

A live viewing at a movie theater

Hankyu Hanshin Holdings Integrated Report 2020

72

ESG Initiatives

S ocialPriority Issue 4

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

Certified "Health & Productivity Management Outstanding
Organization"

Employment Opportunities for People with Disabilities

In March 2020, Hankyu Corporation, Hankyu Hanshin Properties,

the purpose of providing opportunities for people with disabilities

Hankyu Travel International, and Itec Hankyu Hanshin were

to work within our group, providing services such as cleaning, officeselected for the Ministry of Economy, Trade, and Industry's

massage, and intragroup correspondence deliveries. This initiative

Certified Health & Productivity Management Outstanding

was recognized by the Osaka prefectural government, which

Organizations Recognition Program for 2020,* and Hanshin

awarded us the Highly Commended Prize in its Heartful Corporate

Electric Railway received the "White 500," while five other group

Challenge in September 2019.

Employee satisfaction: Always better than previous survey* (applies to Hankyu Hanshin Holdings, Hankyu
Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties)
Women in management positions: Around 10% in fiscal 2030 (applies to Hankyu Hanshin Holdings and six core group companies)
Women among new hires: Always more than 30% (applies to Hankyu Hanshin Holdings and six core group companies)*The survey is conducted biennially.

Project Themes (1)Project Themes (2)Improve employee satisfaction and create amore positive workplace

Promote health and productivity management

Conduct employee satisfaction surveys

Hankyu Hanshin Holdings and other group companies holdPutting the Declaration on Employee Health Management
into Practice
Our Declaration on Employee Health Management expresses ourregular employee satisfaction surveys as a means of obtaining

dedication to improving health awareness among our workforce

honest feedback from employees on how they see their jobs,

and making our workplaces more rewarding. Based on theworkplaces, bosses, the company, etc., and what their priorities

declaration, Hankyu Corporation and the group's other coreare. The surveys provide useful information when considering

companies have assigned directors to be in charge of efforts in thisinitiatives for improving our working environments and making

area, with regular activity reports to be made to top management.

our workplaces more worker-friendly.
The group's Sustainability Declaration, unveiled in May 2020,
also incorporates employee satisfaction survey KPIs for Hankyu
Hanshin Holdings and other core companies,* and we aredetermined to work hard toward ongoing improvements in thisarea.
*The combined overall score achieved by Hankyu Hanshin Holdings, Hankyu
Corporation, Hanshin Electric Railway, and Hankyu Hanshin Properties on
the fiscal 2020 employee satisfaction survey was 3.72 out of five.

*Under the program, the ministry,
together with the Nippon Kenko
Kaigi, recognizes outstanding
enterprises engaging in efforts toadvance health and productivity
management.

Hankyu Corporation has held employee satisfaction surveys

since 2007. It uses the results to inform its workplace
improvement policies and gauge the effectiveness of its HR
systems.
Following a survey, theresults—sorted by division andaccompanied by a message fromdivisional heads—are distributed
to all employees, and a meetingwith company management isheld for each division to reportits findings so that the company
may improve organizational
operations in ways designed toboost employee satisfaction.

The Hankyu Hanshin Holdings Group believes that the mental andphysical wellbeing of employees and their families remains thesource of happiness and the cornerstone of the Group's prosperous
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

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 counselling
facilities at both Hankyu Corporation and Hanshin Electric Railway,
free participation in online clinics aimed at helping smokers quit, andencouraging employees to undergo cancer screenings.
For the time being, our attention is focused on countering theHankyu Hanshin Holdings Integrated Report 2020

disabilities who use support
institutions. Between fiscal
2014 and fis c al 2020,
Fuwafuwa Room offered
work experience to 63
people, 18 of whom went

Promote diversity

on to employment at groupcompanies.

Empowering Women in the Workplace

At the Heartful Corporate Challenge
prizegiving ceremony

Hankyu Hanshin Holdings and the six core group companies
have established action plans based on the Act on Promotionof Women's Participation and Advancement in the Workplace,and continue to be proactive hirers of women. In addition, we
strive to maintain a working environment where all employees—

Project Themes (4)Respect human rights and prevent harassment

regardless of gender—can seek to fulfil their potential. To thisend, we offer varied career experience and implement policies tohelp maintain a balance between work and home life.
These initiatives earned Hankyu Hanshin Holdings its first entry
into the MSCI Japan Empowering Women (WIN) Select Index
in July 2020. The WIN index uses data relating to a company's
hiring and promotion of women as well as disclosed information
regarding diversity initiatives to highlight Japan's leading
companies in terms of gender diversity.

Balancing Work and Family Care Commitments

We have a range of options to help employees maintain theirworking careers in balance with family commitments and othermajor events in life.
• Expanded support programs: Work-from-home, an optional"pool" of unused annual paid leave days, and subsidies for
those using babysitters, etc.
• E xpanded support for those on childcare leave: regular
updates about what's going on in the workplace, "back onboard" seminars, etc.
• H andbooks for leave-takers andtheir managers*T he support initiatives described above arethose of Hankyu Hanshin Holdings; other groupcompanies have their own systems in place inaccordance with the scale of their operations.

Basic Philosophy and Policy on Respect for Human Rights

At the Hankyu Hanshin Holdings Group, we work hard toensure across-the-board respect for human rights. To ensure
all employees understand our stance, we have compiled awritten Basic Philosophy on Respect for Human Rights andBasic Policy 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 people is avital part of every company's social responsibilities.
To that end, we are determined to develop a better instinct forhuman rights by maintaining a deep knowledge and understanding 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 our thoughts
and our actions.

See the Basic Policy on Respect for Human Rights(Japanese only) at https://www.hankyu-hanshin.

■W orkforce Composition of Hankyu Hanshin Holdings and theco.jp/sustainability/materiality/human/rights/

Six Core Companies (as of March 31, 2020)

The Hankyu Hanshin Wellness Challenge

spread of COVID-19 to ensure smooth continuity of business.

73

Project Themes (3)Hanshin headquarters that offers vocational support to people withESG Initiatives

How Hankyu Corporation Uses Employee Satisfaction
SurveysThe Hankyu Hanshin Holdings Group's Declaration
on Employee Health Management

Similarly, the Fuwafuwa Room is an in-house facility at Hankyu

companies were certified in the program's SME category.

Non-Financial KPIs

Assist Hankyu Hanshin is a special subsidiary established in 2005 for

Employees*1
TotalManagement employees*1

MaleFemaleFemaleMale

FemaleTotal

Female8,226

2,204 10,430 21.1%

1,563

73

1,636

4.5%

New recruits*2 (FY2020)
Male

Preventing Harassment through Human Rights Training

All Hankyu Hanshin Holdings management-level employees
and top executives of our group companies undergo humanrights training once a year. Moreover, ongoing reinforcement is

Avg. term of service*1

provided in the form of various human rights training sessions for

FemaleTotal

FemaleMale

Female

Total

Difference

newly appointed officers and managers, new recruits, and newly

345(88) 316(91)

661

47.8%

20.4

10.2

18.1

10.2

promoted employees at group companies in order to instill the*1 Includes those on secondment elsewhere; excludes those seconded to us.
*2 N ewly graduated and mid-career hires in fiscal 2020. Parentheses
denote employees hired mid-career.

importance of respect for human rights and prevent harassment.

Hankyu Hanshin Holdings Integrated Report 2020

74

ESG Initiatives

ESG Initiatives

E nvironmental

Priority Issue 4

Empowering individuals
Project Themes (5)Priority Issue 5

a variety of real work during their summer vacation. We have

Cultivate tomorrow's leaders
As part of the Hankyu Hanshin Dreams and Communities for
the Future Project, we provide career education programsfor elementary school children. The following two programs

hosted around 17,000 children across 389 programs so far.

Hankyu Hanshin Dreams and Communities Exciting
Work Program

Hankyu Corporation management staff conduct classes at local

received the Minister's Award (Grand Prix) at the 8th Career

elementary schools about Hankyu founder Ichizo Kobayashi's

Education Awards held by the Ministry of Economy, Trade, andcommunity building initiatives and the wide-ranging work that

Industry in fiscal 2018.

goes into supporting communities as a means of fostering love

Hankyu Hanshin Dreams and Communities Challenge
Troop
With railways , hotel s , theTakarazuka Revue Company, andHanshin Koshien Stadium among
many others, our businesses,of community and dreams
for the future. To date,to around 17,000 children
at 197 schools.
Children participate eagerly in an in-school
program

As part of the Hankyu Hanshin Holdings Group's commitment to creating communities that people will
truly want to live in, we have operated the Hankyu Hanshin Dreams and Communities of the Future
Project since 2009. The project, which focuses chiefly on fostering better environments and people,
is one of our efforts aimed at helping meet the SDGs as outlined in the Sustainability Declaration weunveiled in May 2020.

1. Environment-Friendly Development

Themes of specific initiatives
1. Creating a safe, comfortable, and environmentally aware local
community
2. Contributing to the preservation of biodiversity and the naturalenvironment
3. Promoting sustainable lifestyles
4. Preserving, utilizing, and developing local history and cultural
resources
5. Prevention of global warming
6. Contributing to the emergence of a society committed torecycling and waste reduction

2. Human Capital Development

We are creating opportunities for the healthy development of
ambitious children, upon whose shoulders the task of building
the communities of the future rests.
Themes of specific initiatives
1. Enabling children to experience and learn about nature andecology
2. Fostering mental enrichment in children through cultural andartistic activities

75

Hankyu Hanshin Holdings Integrated Report 2020

Mindful that global environmental preservation is a task

1. W e will monitor the environmental impact of our

3. Supporting the healthy development of children throughsports
4. Enabling children to gain a deeper understanding of society
and their communities
5. Cultivating in children a sense of compassion andacknowledgement of diversity
6. Instilling in children the wisdom of their parents andgrandparents
7. Supporting children with disabilities, children orphaned bytraffic accidents or disasters, children in single-parent families,
and children confined to social welfare facilities

Group Social Contribution Initiatives in Fiscal 2020

Collaboration with Group companies
We promote the initiatives of our Group companies throughpublic relations, sponsorships, and additional contributions. In
fiscal 2020, 102 initiatives were certified (94 in fiscal 2019). Of
these, the Hankyu Hanshin Dreams and Communities Challenge
Troop was particularly successful, attracting a best-ever 2,707
kids.

activities aimed at handing down a sounder global andhuman environment to the next generation.

business activities and take action to reduce it.
2. We will accurately understand environmental laws andregulations and other social requirements and comply
with them.
3. We will strive to raise employees’awareness so thatevery employee will be able to act 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 8)

Upgrading to Energy-Efficient Rolling Stockand endeavor to reduce CO 2 emissions. In fiscal 2020, CO 2

point is the operation of transportation services. Seeking to reduce

emissions were down 16% year on year, to 434,292 t-CO 2.

energy consumption, we are gradually upgrading our rolling stock

Furthermore, energy consumption on a crude oil conversion

to energy-efficient models with, for instance, regenerative braking

basis decreased as a result of efforts by the Group companies

systems that use the resistance of braking motion to drive a motor

to reduce energy consumption. These efforts include theand generate electricity for use in powering other trains.

We promote energy-efficiency initiatives throughout the group

In our Urban Transportation Business, the biggest energy consumption

introduction of LED lighting in railway stations, commercial

Another example is Hankyu Corporation's use of aluminum

facilities, hotels and other facilities as well as the introduction

railway cars, which are approximately ten percent lighter thanof an increased number of new rolling stock with better energy

conventional steel models and therefore use less energy andefficiency.

put less burden on brakes when decelerating. Similarly, Hanshin

The graph below shows a breakdown of CO2 emissions acrossElectric Railway is reducing its environmental impact by using

the whole group.

stainless steel structures and doing away with external painting.

■ Fiscal 2020 Group-wide Segment-Specific CO2 Emissions

energy, last longer, and create less waste.

Collaboration with local community
We subsidize citizen's groups in the Hankyu Hanshin service
area through donations raised by our employees and additional
contributions from the company via the Hankyu Hanshin
Dreams and Communities of the Future Fund. In fiscal 2020, 15
institutions (including five ongoing projects from previous
years) submitting applications received a total of ¥9.5 million.
(Cumulative total: 139 institutions, ¥79.79 million)

Urban transportation

65.3%

Real estate

18.8%

Collaboration with Group employees
We encourage current and past employees to engage incommunity activities voluntarily by assigning points via theSocial Contribution Point System. In fiscal 2020, some 2,733
people (up 255 from the previous year) across 70 companies
received points.

OthersEntertainment
Information andCommunication Technology
TravelInternationaltransportation
Hotels

2.7%
0.4%
0.4%
0.5%
10.9%
1.0%

*Figures pertain to 78 Hankyu Hanshin Holdings subsidiaries in Japan;
some businesses, for which it is difficult to calculate energy consumption,
are excluded. Segments used herein are those in effect in fiscal 2020.

ESG Initiatives

As a Group with strong local roots, we are committed tosustainable community building with environment-friendly
developments that provide local residents with security, peaceof mind, and cultural enrichment.

Basic Environmental Policies

works for a sustainable society through environmental

Hankyu Hanshin Dreams and Communities of
the Future Project

Our links to the future: Environment-Friendly Development andHuman Capital Development

Basic Environmental Philosophy
facing all mankind, the Hankyu Hanshin Holdings Group

Hankyu Hanshin Holdings Group Social Contribution Activity

Priority Areas

Non-Financial KPIs

40% (relating to energy consumption in the rail operations of Hankyu Corporation and Hanshin Electric Railway)

about future occupations

school students to experience

We intend to promote the creation of towns and cities along
our line-side areas that people will truly want to live in.

Contribute toward a low-carbon, circular economy.

26% (Hankyu Hanshin Holdings' and subsidiaries' Japanese worksites)

opportunities to think

ideal framework for elementary

Basic Policy

Policies

Rate of CO2 emissions cuts (target for FY2031 compared to FY2014)

we have brought thesefacilities, and workforce are theKids participate in the Hotel Patissier
ProgramEnvironmental protection

We are also gradually installing LED lights, which use lessUpgrading to Energy-Efficient Rolling Stock(as of March 31, 2020)
Hankyu Corporation Total rolling stock: 1,299 cars
● Cars with regenerative braking: 885 (68%)● Aluminum-body cars: 788 (61%)● Cars with LED lights: 620 (48%)
Hanshin Electric Railway Total rolling stock: 366 cars
● Cars with regenerative braking: 326 (89%)● Stainless steel cars: 154 (42%)● Cars with LED lights: 212 (58%)
Energy Savings
Reduction in railway business energy consumption in FY2020
compared with FY2014
Hankyu Corporation 8.6％, Hanshin Electric Railway 7.6％
Hankyu Hanshin Holdings Integrated Report 2020

76

ESG Initiatives
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 at Hankyu andGeneral Meeting of Shrareholders, the energy used at the venue

Hanshin stations, marshaling yards, tunnels, level crossings, andis offset under the Ministry of the Environment's J-VER schemeother railway facilities, as well as Takarazuka Grand Theater,using offset credits generated by reforestation projects in Hyogo

Tokyo Takarazuka Theater, and our commercial facilities, hotels,

Prefecture.

and distribution hubs.

In addition, Hankyu Corporation has teamed up with Osaka

Other Environmentally Considerate Buildings

Umbrella Sharing Schemecounter the heat island effect, as well as LED lighting to help cut

with Kobe City and Nature Innovation Group Co., Ltd. to

CO2 emissions. The air conditioning at the HERBIS OSAKA andintroduce an umbrella sharing scheme. From this June, under

HERBIS ENT buildings feature one of Japan's largest (at the timethe iKasa scheme, customers can takeof installation) single-building ice thermal storage systems, which

an umbrella from any of the dedicatedprovides for efficient night-time energy use.

iKasa stands in 49 locations at 39

NU chayamachi PLUS has "green walls" and rooftop greenery to

Hanshin stations for just 70 yen a

Gas since fiscal 2015 to hold special "carbon offset performances"day, and return it to whichever iKasaof the Takarazuka Revue. All CO2 emitted during the run is offset
under the government's J-Credit scheme for offsetting greenhousegas emissions.

1300-series Hankyu
train cars are lit with
LED lights

stand is handy. Not only is this system

Project Themes (5)Produce less waste and recycle more

Project Themes (4)In February 2020, Hanshin Electric Railway inked an agreement

extremely convenient for customers, it
helps reduce umbrella waste.

Shared umbrellas at Hanshin
Naruo MukogawajoshidaiMae Station

Recycling Hanshin Koshien Stadium's Plastic Drink
Containers

Collecting Plastic Bottle Caps

We work with TEIJIN FRONTIER CO., LTD. to recycle the plastic

encourage all their employees to engage in a simple act ofdrink containers used to serve beer atcharity: collecting plastic bottle caps. The caps are periodicallyHanshin Koshien Stadium. The recycled

sold to recyclers and the companies donate the proceeds to the

To underpin our quest for more eco-friendly buildings, we havecontainers are made into beer cup

Japan Committee, Vaccines for the World's Children.

acquired the Development Bank of Japan's DBJ Green Building

holders and a variety of other popularcertification* for our Umeda 1-1 Project, Hankyu Nishinomiya

novelty items. We collected 4.9 tons

Gardens, and HEP FIVE, and are looking to obtain certification forof used drink containers in fiscal 2020,

more of our buildings.

which became 11,000 cup holders.

Aim for more eco-friendly buildings (green buildings)
DBJ Green Building Certification

Hankyu Travel International and Hankyu Hanshin Express

Other Environmental Initiatives
Conservation and Effective Use of Water Resources

Inside Takarazuka Grand Theater

Hankyu Sanbangai shopping arcade

Umeda 1-1 Project
Certified as 5-star DBJ
Green Buildings that meet
Japan's highest standards
for environmental andsocial consideration.
Award recipients: Hanshin
Electric Railway, Hankyu
Corporation

Hankyu Hanshin Express Gets ISO 14001 Certification
Since 2006, Hankyu Hanshin Express has had ISO 14001
certification, which certifies that a company maintains certain
criteria regarding environmental management practices. Two of
the company's registered business sites, Hankyu Hanshin Osaka
Cargo Terminal and Narita Cargo Center, have a number of
initiatives in place to help reduce their environmental impact,
includingregularlecturesonenvironmental

conservation

attended by all staff, automated real-time monitoring of electricity
consumption, and separation of paper from other waste forrecycling.

the Dai-Ichi Hotel Tokyo are composted, while those from the
Hotel New Hankyu Osaka are used as feed on a pig farm.

Hanshin

Oishi

Station,HankyuNishinomiya Gardens, HEP FIVE, and Hanshin Koshien Stadium.

The

Umeda

HankyuBuilding

No More Plastic Straws

other plant matter.

isHanshin Koshien Stadiumin 1947, and served aspreservation of biodiversity.

We work hard to protect the Hepatica
nobilis var. pubescens variety ofliverwort, an endangered species.

Protecting Japan's Best "Satoyama" Forest

considerate "eco-benches" made of

The satoyama community forest and agricultural landscaperecycled wood.
Umeda Hankyu Building

Association of Botanical
Gardens since its inception
a l o c al out p o s t f or t hestations can sit on environmentally-

Comprehensive Assessment System(CASBEE).

Straw made from plant-derived
plastic

passengers waiting for trains at our

Osaka's
Efficiency

a member of the Japanare made from recycled material such as plastic bottles, andIn 2007, the building received

Environment

The garden has been

Bendy straws are available for

Uniforms worn by staff at our urban transportation companies

and elevators.

Built

species, all of which are cultivated in near-natural conditions.

hazardous substances.

Use of Recycled Materials

systems for air conditioning, pumps,

Protecting Biodiversity at the Rokko Alpine Botanical
Gardenthe world, as well as plants native to Rokko and endangered

combustion gases containing

elderly people.

as well as inverter-based control

forand facilities.

1,500 varieties of alpine and cold-region plants from aroundease of use by small children andconditioning heat source devices,

under

Meanwhile, Hankyu Nishiyama-tennozan Station and Hanshin
Koshien Stadium are equipped with tanks to store rainwater,of the importance of preserving nature. The garden has around

paper, generate little energy

output, the latest high-efficiency air-rank

environmental action groups.

Rokko Alpine Botanical Garden is devoted to raising awareness

Plant-based plastics, likesystems that automatically adjustSand some of the money saved on laundry is donated towhich is subsequently used in toilets and to water grass, and wea resin derived from corn andfeatures such as sensor-based lighting

top

replaced every day. This reduces the volume of wastewater,

are working to install water-efficient toilets in our other stations

operated hotels, and has replaced them with straws made fromdesigned for energy efficiency, with

thenights to use the same sheets and towels instead of having them

ESG Initiatives

We are endeavoring to reduce CO2 emissions by installing solar
power generation facilities at premises groupwide, including

HEP FIVE

efficiently by repurposing food waste. For instance, scraps from

Hankyu Hanshin Hotels encourages guests staying multiple

plastic straws in the restaurants and banquet halls of its directly-

Umeda Hankyu Bldg., Gets Top "S" CASBEE Osaka
Ranking

Install Solar Power Generation Facilities to Reduce CO2Emissions

Station,We strive to reduce food waste and use resources more

upon incineration, and emit no

Use more renewable energy (e.g. solar)

Settsu-shi

Recycling Food Waste

From the end of 2019, Hankyu Hanshin Hotels has ceased using*T his system rates real estate based on
its consideration for the environment andsociety, thus helping to connect businessowners, financial institutions, and investors.
Buildings are rated not only on theirenvironmental credentials, but on theirability to meet the broad social needs of avariety of stakeholders.

Project Themes (3)HankyuA beer cup recycling bin

in the Kurokawa district of Kawanishi City, Hyogo, has been
An "eco-bench"

described as Japan's best. The Nose Electric Railway, which
serves this area, and to this end, Nose employees volunteer to
do maintenance work every year between January and March,and contribute to PR activities.

77

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202078

Financial Section and Corporate Data

Consolidated Six-Year Summary
2015

Consolidated Financial Review

20166

2017

20188

2019

20209

2020

Revenues from operations¥ 685,906¥ 746,792¥ 736,763¥ 760,252¥ 791,427¥ 762,650$ 6,996,789

Operating income

94,026110,293

104,058

105,211

114,937

95,170873,119

EBITDA2

150,100

166,500

159,300

160,800

171,400

154,100

1,413,761

Ordinary income

85,590104,479

100,607

103,774

110,543

88,795

814,633

Income before income taxes

77,62096,087

100,805

101,41088,56286,746

795,835

Net income attributable to owners of the parent

54,201

69,971

71,302

66,36165,47654,859503,294

Comprehensive income

71,034

63,842

79,28873,991

66,56544,292406,349

Capital expenditure

68,11566,63986,21286,404

114,368

81,090743,945

Depreciation and amortisation

53,14353,70152,80053,27654,17256,542518,734¥ 123,086$ 1,129,229

Cash flows from operating activities¥ 131,881¥ 124,838¥ 115,633¥ 135,821¥ 126,035

Cash flows from investing activities(52,529)(78,843)(84,845)(88,351)(116,160)

Cash flows from financing activities(81,746)(47,278)(30,595)(43,242)(11,171)

964

8,844

Increase (decrease) in cash andcash equivalents(1,125)(1,978)

(480)

4,588

(1,848)（4,454）（40,862）

Cash and cash equivalents at end of year

23,49722,363

22,53027,501

27,58923,526

215,835（128,498）（1,178,881）

Financial Position (Millions of yen and thousands of U.S. dollars):¥2,279,638¥2,282,180¥2,349,831¥2,404,926¥2,466,223¥2,489,081$22,835,606

Total net assets

679,482

724,237

804,659

866,512915,381

937,672

8,602,495

Interest-bearing debt

955,828

916,570

899,523

866,758

877,055

903,480

8,288,807(Year ended March 31, 2020)

42.98¥ 277.88¥ 285.11¥ 267.91¥ 266.86

Basic

¥

Diluteda decrease in income from investments accounted for with theequity method, and other factors as well as the abovementioned
decrease in income.

The revenues from operations were ¥762,650 million, a decreaseof ¥28,776 million (3.6%) from the previous consolidated fiscal

Extraordinary income/loss improved by ¥19,932 million as

year due both to repercussions of the sale of land for commercial

earnings metrics returned to normal from an impairment loss

facilities in the eastern section of Saito International Culture Park

recorded from an agreement to transfer railway assets recognized(Ibaraki, Osaka Prefecture) in the Real Estate Business, and thein the previous consolidated fiscal year related to Hokushin Kyuko

influence of COVID-19 in the 4th quarter, which has affectedElectric Railway.
Net income attributable to owners of the parent was ¥54,859

several businesses.

million, reflecting a decline of ¥10,616 million (16.2%) from the

As a result, operating income was ¥95,170 million, a decreaseprevious consolidated fiscal year.

year.
Notably, due to the effects of COVID-19, revenues fromoperations decreased ¥22,000 million and operating income¥15,400 million.

Analysis of operating income(¥ million)¥

225.69$

114,937

FY2019−28,776

Decrease in revenues from operations
Decrease in operating expenses and costs of sales＋9,686

2.07

Decrease in personnel expenses＋2,576

Increase in expenses−3,005Per Share Data (Yen and U.S. dollars):
Net income attributable toowners of the parentof ¥21,748 million (19.7%) from the previous fiscal year, due toof ¥19,767 million (17.2%) from the previous consolidated fiscal

Cash Flows (Millions of yen and thousands of U.S. dollars):

Total assets

Ordinary income decreased to ¥88,795 million, a decrease

Analysis of Operating Results for Fiscal 2020

Result of Operations (Millions of yen and thousands of U.S. dollars) :
1

42.95

277.67284.86267.81266.86——

Net assets

525.562,815.96

3,150.67

3,391.35

3,615.52

3,738.56

34.299Dividend

6.00

35.00

35.00

40.00

40.00

50.00

0.46

Ratios:Operating income margin (%)

13.7

14.8

14.1

13.8

14.5

12.5

—

ROA (%)3

3.7

4.6

4.3

4.4

4.5

3.6

—

ROE (%)4

8.6

10.3

9.4

8.2

7.6

6.1

—

Interest-bearing debt/EBITDA (Times)

6.4

5.5

5.6

5.4

5.1

5.9

—

Equity ratio (%)

29.1

31.0

33.5

34.8

35.9

36.4

—

Debt/equity (D/E) ratio (Times)5

1.4

1.3

1.1

1.0

1.0

1.0

—

1,271,406

254,281254,281254,281254,281254,281—

21,037

21,607

21,86022,152

22,65422,800—

Increase in taxes−202

Decrease in depreciation and amortization＋138

Increase in amortization of goodwill−185

95,170

FY2020YoY diﬀerence −19,767* Included in cost of revenues from operations, retirement beneﬁt expenses increased −1,420.

Others:Number of outstanding shares (Thousands)
Number of employees

1.	The U.S. dollar amounts have been translated, for convenience only, at ¥109 = US$1, the prevailing exchange rate on the Tokyo Foreign Exchange Market as of March 31,
2020.

2.	EBITDA = operating income + depreciation expenses + amortisation of goodwill
EBITDA figures are rounded to the nearest ¥100 million.

Segment Information
The following table shows business performance for each core business segment. For more on these results, see the respective pages
referenced at the bottom of the columns in the table below.

3.	ROA = ordinary income / total assets (average of period-start and period-end totals)(Millions of yen)

4.	ROE = net income attributable to owners of the parent / equity (average of period-start and period-end totals)

Urban
Transportation

5.	D/E ratio = interest-bearing debt / equity

6.	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 2016
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.

7.	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

Revenues fromoperations
FY2020FY2019YoY difference

Effects of COVID-19: −5,200

Entertainment

Travel−4,400Hotels−5,200−22,000

33,76676,18660,28042,486 （45,887） 762,650

35,52889,99064,92343,417−4,900227,176

236,046

74,02058,576

238,562

237,276

74,51853,533（11,385） （1,229）

International
Transportation（498） ＋5,042（1,762） （13,804） （4,643）

Other

Adjustment（930）

Consolidated

Financial Section and Corporate Datais the amount after retrospective application (gross presentation).

Real Estate

Information andCommunication
Technology（46,322） 791,427+434（28,776）

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.

8.	The partially amended“Tax Effect Accounting”standards (ASBJ Guidance No. 28, February 16, 2018) have been applied since the start of fiscal 2019, and theconsolidated financial indicators and similar of fiscal 2018 are those after retrospective application of the relevant accounting standards.

9. As there are no potential shares with a dilutive effect, net income attributable to owners of the parent per diluted share for fiscal 2020 has been omitted.

Operatingincome−4,700

FY202040,056

41,51011,695

5,598

232

170

（3,142）

2,381（3,332）FY201943,45549,25013,439

5,279

1,764

2,392

1,214

2,333

（4,191） 114,937

YoY difference
Reference page

−3,000（3,399） （7,740） （1,744）
P.29

P.31

P.33

−3,100+318
P.35−3,300（1,531） （2,221） （4,356）
P.37

P.39

P.41

−15,400

+47

+859

—

—

95,170（19,767）—

From the consolidated fiscal year under review, the six previous reportable segments (Urban Transportation; Real Estate; Entertainment and Communications; Travel;

International Transportation; and Hotels) have been changed to seven: Urban Transportation; Real Estate; Entertainment; Information and Communication Technology; Travel;
International Transportation; and Hotels.

This change aims, among other things, to further increase the competitiveness of our communications and media business, which was previously included in theEntertainment and Communications segment. In addition to the name change, our information and communications business has been split off as the independent Information
and Communication Technology segment, while the previous Entertainment and Communications segment has been renamed as the Entertainment segment.
Segment information for the previous consolidated fiscal year is based on these new reportable segment boundaries.

79

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 2020

80

Financial Section and Corporate Data

Review of Financial Position
1. Assets, Liabilities and Net Assets

2. Cash Flows(2) Cash Flows from Investing Activities

Total cash and cash equivalents at the end of the consolidated

Net cash used in investing activities was ¥128,498 million,

year, because of factors such as an increase in interest-bearing

fiscal year were ¥23,526 million, a decrease of ¥4,063 million

an increase of 10.6% year-on-year, because of purchases ofdebt, accounts payable, and long-term deferred contribution forfrom the end of the previous consolidated fiscal year.

noncurrent assets of ¥96,028 million, purchases of investment

Total liabilities were ¥1,551,409 million, an increase of¥567 million from the end of the previous consolidated fiscal

construction, despite decreases in advances received and trade

Total assets at the end of the consolidated fiscal year underpayables, etc.

securities of ¥27,660, receipt of contributions for construction of(1) Cash Flows from Operating Activities¥19,631 million, etc.

review were ¥2,489,081 million, an increase of ¥22,858 million

Total net assets were ¥937,672 million, an increase of

Net cash provided by operating activities was ¥123,086 million,

from the end of the previous consolidated fiscal year, because¥22,291 million from the end of the previous consolidated fiscal

a decrease of 2.3% year-on-year, because of income before(3) Cash Flows from Financing Activities

of factors such as an increase in property and equipment, long-year, because of an increase in retained earnings, etc.

income taxes of ¥86,746 million, depreciation and amortization

Net cash from financing activities was ¥964 million, because of aof ¥56,542 million, paid corporation and other taxes of ¥15,295

net increase in borrowings of ¥15,003 million, the issue of bonds

million, etc.

of ¥29,766 million, the redemption of bonds of ¥20,000 million,

term loans, and investment securities, despite decreases in trade

As a result, the equity ratio was 36.4%, and the ROE was
6.1%.

receivables, etc.

purchases of treasury stock of ¥9,960 million, dividends paid of¥11,020 million, etc.

+29.8 −20.0

FY2020−27.7

Net assets

Investments and other assets+19.6 −24.4

27.6

Pu

0
02

ar
ch

31

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th
er
O

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id

k

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ds

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oc

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ip

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in

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23.5

Financial Section and Corporate Data

D

m

ta
xe
s
e

am
or
tis

9
01
in
re
fo
be
e
m
co
In

−11.0
−2.8

,2
31
ar
ch
M
d
de
en
ar
Ye

−10.0

+15.0

s

Long-term liabilities

394.6

ur
y

FY2019Current liabilities

+86.7

nd

FY20201,156.8boIntangible assets

Property and equipment

404.3

−96.0

tre
as

FY2019Current assets

263.0

Current liabilities‒9.7
Main cause:
Decreases inadvances received

−4.9

of

303.0

Current assets−40.0
Main cause:
Decreases intrade receivables+56.5 −15.3

es1,146.6

937.7

Cash ﬂows fromﬁnancing activities
＋1.0

as

1,811.8

Long-term liabilities+10.2
Main cause:
Increase inlong-term deferred
contribution
for construction

Cash ﬂows frominvesting activities−128.5

Cash ﬂows fromoperating activities＋123.1

nd
s

915.4

(¥ billion)

of

36.6

Net assets+22.3
Main cause:
Increase inretained earnings

Cash ﬂows

bo1,783.8

377.8

Total liabilities
and net assets¥2,489.1 billion

n

35.7

Noncurrent assets+62.8
Main cause:
Increase inproperty andequipment andlong-term loans

Total liabilities
and net assets¥2,466.2 billion

pt
io

343.7

Total assets¥2,489.1 billionm

Total assets¥2,466.2 billion

rch(¥ billion)deLiabilities and net assets(¥ billion)

of

Assets3. Fund Procurement

The outstanding balance of interest-bearing debt at the end of
the consolidated fiscal year was ¥903,480 million, an increaseof ¥26,424 million over the end of the previous consolidated
fiscal year, as expenditure of funds for investments in facilities
and equipment such as the Umeda 1-1 Project and acquisition

goodwill) etc.
The ratio of interest-bearing debt/EBITDA, which is thebenchmark the Company uses for assessing the soundness of its
financial position, stood at 5.9 times at the end of the fiscal year
compared with 5.1 times at the end of the previous fiscal year.

of investment securities exceeded receipt of funds from EBITDA(operating income + depreciation expenses + amortization of81

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202082

Financial Section and Corporate Data

Business Risks
The various categories of risk to which the business performance, stock price, financial position, and other aspects of operations

Consolidated Capital Expenditure andDepreciation and Amortizationof the Hankyu Hanshin Holdings Group are subject are detailed below. Nevertheless, these dangers do not encompass all risks
attendant on Group activities and there are risks other than those stated below which are difficult to foresee.
Information about future events that appears in this annual report was determined by the Group to be current as of March 31,

The amount of capital expenditures (including those for2020.

intangible assets) in the consolidated fiscal year under review
was ¥81,090 million, recording a decrease of ¥33,278 million(29.1%) from the previous consolidated fiscal year.
The following is a breakdown for each business segment.

Risk from Epidemics

Interest-Bearing Debt

in various ways restricted as they go about their daily affairs, it may

end of March 2020, on a consolidated basis, was ¥903,480 million.

If an infectious disease becomes widespread and people’s lives are(Millions of yen)(%)

FY2020YoY

Urban Transportation

32,928−2.6

Real Estate

32,212−48.4

Entertainment

4,161

57.8

Information and Communication Technology

4,865

−8.3

Travel

1,244

49.7

International Transportation

1,111

63.9

Hotels

4,814

145.5

Other

198

−86.4

Adjustment

−446

—

Consolidated

81,090−29.1

materially affect the businesses of the Company. Specifically, effects

Depending on future rises in interest rates, changes in financial

may arise in the Urban Transportation Business through factors

markets, or downgrades of the Group’s credit ratings by ratingsuch as declining volumes of passengers on railways and otheragencies, etc., the Group’s interest expenses may increase, andtransportation; in the Real Estate Business through the temporary

raising additional funds on desirable terms may become difficult,closure of leased facilities and the shortening of business hours; inincluding funds needed to refinance interest-bearing debt reaching

the Entertainment Business through the cancellation of professional

maturity.

baseball games and performances of Takarazuka revues; in the

The Group will continue to diversify its funding and secure

Travel Business through increased suspensions and cancellations

its liquidity, take steps to avoid interest rate risk through fixed-of overseas and domestic tours; and in the Hotel Business throughrate finance, and strive to maintain the soundness of the Group’sfalling demand from inbound tourism owing to travel bans as wellfinancial position by focusing on the ratio of interest-bearing debt to

as cancellations of domestic travel and business trips, and other

EBITDA as a management indicator.

adverse effects. At present, in the wake of the widening spread of
COVID-19, the Group is impacted by effects as described above.
Depending on the duration and degree of these impacts, theGroup’
s business performance and financial position may fluctuatesignificantly.

Urban Transportation

The railway business carried out capital investment with a focus
on safety and service improvement, building of new rolling

TravelIn the Travel Business, Hankyu Travel International invested in IT
systems for online reservations.

stock, improvement of existing rolling stock, etc.

Real Estate

International Transportation

In the International Transportation Business, Hankyu Hanshin

The Real Estate Business invested in the Takarazuka Hotel

Express invested in the opening of the Narita Global Logistics

Relocation Project, the East Building Reconstruction Project andCenter.

West Building Renewal Project at the Kobe Hankyu Building, andthe Umeda 1-1 Project.

Entertainment

In the Hotels Business, Hankyu Hanshin Hotels invested in the
opening of new hotels, including Hotel Hankyu RESPIRE Osaka.

The Entertainment Business opened a new venue at Billboard
Yokohama and carried out facility improvements, etc., at the
Hanshin Koshien Stadium as well as the Takarazuka Grand
Theater and the Tokyo Takarazuka Theater.

Depreciation and amortization in the consolidated fiscal
year under review was ¥56,542 million, recording an increase of

In the Information and Communication Technology Business,
Bay Communications Inc. carried out work to extend its mainlines and add service lines, among other improvements.

In the case of a substantial decline in the market value of inventory

assets, property and equipment and intangible assets, investment

measures surrounding earnings and cash flow. Also, lifestyles andsecurities, and other assets, the recording of impairment losses orbusiness styles are changing due to the impact of COVID-19. Mindfulvaluation losses, etc., would likely have a negative impact on thethat changes of this kind in society may affect the Group’s existing

business performance and financial position of the Hankyu Hanshin

business model, the Group will work to mitigate risk and promote

Holdings Group.

the steady enhancement of corporate value by continuing with theimplementation of its“Hankyu Hanshin Holdings Group Long-Term
Management Vision for 2025.”

Declining Birth Rate

In the Group’s mainstay Kyoto-Osaka-Kobe area, demographic
changes accompanying the declining birth rate and other factors
are expected to lower demand for railway, bus, taxi services andIn accordance with the stipulations of Article 3 of the Railway

other types of passenger transportation and to lower demand in

Business Law, the Group must obtain separate permissions from theother business areas. In addition, securing personnel is likely to

Ministry of Land, Infrastructure, Transport and Tourism (MLIT) for

become difficult as an imbalance between supply and demandeach category of railway operations on each route that it intends todevelops in the labor market. Such contingencies could affectoperate. Moreover, under Article 16 of the Law, a railway operator

the business performance and financial position, etc., of themust obtain the Ministry’s approval for the passenger fares it intends

Group.

to set and on each occasion when it wishes to change the fares.

In addition to efforts to increase the resident population

Therefore, these regulations may limit the activities of thein areas along the railway lines operated by the Group and toGroup’
s railway business. Notably, no fixed periods are prescribed

increase the influx of visitors to these areas by capturing thefor these permissions and approvals by the Minister of Land,demand posed by foreign tourists, etc., the Group overall will

Infrastructure, Transport and Tourism.

promote efforts to improve productivity by introducing advanced

In addition to the railway business, other businesses in which

Financial Section and Corporate Data

Information and Communication Technology¥2,370 million (4.4%) over the previous consolidated fiscal year.

Decline in the Market Value of Assets Held by Membersof the Hankyu Hanshin Holdings GroupIn these circumstances, the Group will firstly work on recovery

Legal Risk
HotelsThe balance of interest-bearing debt held by the Group as of thetechnologies.

the Group engages are also subject to various laws and regulations.
If these are tightened, the cost of regulatory compliance may
increase, while failure to comply with regulations may limit theGroup’s activities and affect the Group’s business performance andfinancial status, etc.

Natural Disasters

Oper at i ng as i t do es acr os s a n e xtr em e ly w ide r a ng eof businesses in its Urban Transportation, Real Estate,

The Group is working to minimize any such effects byEntertainment, Information and Communication Technology,

investigating and ascertaining in advance information regarding

Travel, International Transportation, and Hotels segments,changes in existing regulations and the establishment of new

the Group has a correspondingly large assortment of facilities

regulations and their respective impact.

necessary for the conduct of business. In the event ofearthquakes, typhoons or other climate change-related natural
disasters, large-scale accidents, or acts of terrorism, the business

83

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202084

Financial Section and Corporate Data

Consolidated Balance Sheets
As of March 31, 2019 and 2020

performance and financial position of the Group could be
adversely affected by damage to these facilities, its customers,
and/or limitations placed on its business operations.

Management of Personal Information

other personal information in each of its businesses. Therefore,

The Group is investing in the maintenance/renewal ofin order to strengthen its risk management, the Group hasexisting facilities, conducting seismic reinforcement work, andestablished internal regulations such as fundamental policies

working to develop systems with a priority on safety, especiallyfor the management of personal information and conducts

at group companies engaged in the railway business and otherrelevant training sessions for employees. However, if information

public transportation.

is leaked due to an unexpected incident, etc., claims fordamages and loss of public credibility may affect the business

International Operations

The Group’s Real Estate, Travel, International Transportationand other businesses are also active overseas, and are therefore
subject to various risk factors in each country, ranging fromdrastic changes in political and economic conditions, toincidence of conflict, dispute, or terrorism, and the outbreakof infectious diseases. The Group is working to address these

Millions of yen

The Group manages databases containing customer data andperformance and financial condition of the Group.

Thousands of U.S. dollars

2019

2020

2020

AssetsCurrent assets:
Cash and deposits¥28,856¥

25,023$229,569

Trade receivables

93,15468,366627,211Land and buildings for sale

119,918

121,813

1,117,550

Finished products and merchandise

2,568

2,596

23,817Work in progress

3,864

4,061

37,257

Materials and supplies

4,762

4,862

44,606

Other

50,09536,476334,642

Allowance for doubtful receivables

（254）

（216）

（1,982）302,963

262,984

2,412,697

Buildings and structures–net (Note 5.3)

572,410574,4815,270,468

Machinery, equipment and vehicles–net (Note 5.3)

65,672

66,263607,917

Land (Notes 5.3 and 5.5)

955,012950,100

8,716,514

Construction in progress

171,336

198,838

1,824,202

Total current assets

risks based on risk analyses supported by the advice of lawyers,
consultants, and other experts. However, in the case of an
unexpected development, business performance and thefinancial condition of the Group may be affected.

Noncurrent assets:
Property and equipment:

19,35822,076

202,532

1,783,789

1,811,760

16,621,651

Goodwill

16,214

14,223

130,486

Other (Notes 5.2 and 5.3)

19,52022,327

204,835

Total intangible assets

35,73436,550335,321291,771

302,951

2,779,367

6,965

6,956

63,817

Other–net (Note 5.3)
Total property and equipment (Notes 5.1 and 5.2)
Intangible assets:

Investments and other assets:
Investment securities (Notes 5.3 and 5.4)
Deferred tax assets
Net defined benefit asset

14,595

13,636125,101

Other (Note 5.3)

30,61054,436499,413

Allowance for doubtful receivables
Total investments and other assets
Total noncurrent assets
Total assets

（208）

（195）

（1,789）343,735

377,786

3,465,927

2,163,259

2,226,097

20,422,908

2,466,223

2,489,081

22,835,606
Financial Section and Corporate Data

85

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202086

Financial Section and Corporate Data

Consolidated Statements of Income
Years ended March 31, 2019 and 2020

Millions of yen

2019

Thousands of U.S. dollars

2020

¥

48,054¥

29,508$

270,716

Accrued expenses

21,38016,727

153,459

Short-term borrowings (Note 5.3)

137,036

158,406

1,453,266

Current portion of bonds

20,00025,000229,358

Lease obligations

1,567

2,404

22,055

Income taxes payable

4,576

13,683

125,532

Provision for bonuses

4,345

3,986

36,569Other (Note 5.3)

167,324

144,917

1,329,514

Total current liabilities

404,286

394,634

3,620,495

Long-term liabilities:
Long-term debt (Note 5.3)

621,375

615,058

5,642,734

Bonds

92,00097,000889,908

Lease obligations

5,076

5,609

51,459183,167

181,590

1,665,963

Deferred tax liabilities related to land revaluation (Note 5.5)

5,152

5,146

47,211

Net defined benefit liability

62,20963,020578,165

Long-term deferred contribution for construction

63,37574,657684,927

Other

114,198

114,690

1,052,202

1,146,555

1,156,774

10,612,606

1,550,842

1,551,409

14,233,110

Total long-term liabilities
Total liabilities
Net assets:
Shareholders’equity:
Common stock

99,474

99,474

912,606

Capital surplus

146,591

146,598

1,344,936

Retained earnings

641,731

685,087

6,285,202

Less treasury stock, at cost

（34,400）（44,224）（405,725）

Total shareholders’equity

853,397

886,935

8,137,018

Valuation difference on available-for-sale securities

24,144

13,792

126,532

Deferred gains or losses on hedges（325）

Accumulated other comprehensive income:
（28）

（257）

5,523

5,511

50,560Foreign currency translation adjustments

（163）

（427）

（3,917）

Cumulative adjustments related to retirement benefit plans

2,287

（136）

（1,248）

Total accumulated other comprehensive income

31,46518,711

171,661

Non-controlling interests (Note 5.5)

30,51732,025

293,807

Total net assets

915,381

937,672

8,602,495

2,466,223

2,489,081

22,835,606

Operating expenses and cost of sales of transportation

650,127

Selling, general and administrative expenses (Note 6.1)

26,361

Total costs of revenues from operations (Note 6.2)

676,489

Operating income

2020

762,650$ 6,996,789

640,441

5,875,606

667,480

6,123,670

27,039248,064

95,170114,937

Interest income

123

Dividend income

1,372

Equity in income of affiliates

4,962

Miscellaneous income

2,918

Total non-operating income

9,377

873,119

149

1,367

1,399

12,835

2,393

21,954

3,389

31,092

7,331

67,257

Non-operating expenses:
Interest expenses

9,615

Loss on retirement of noncurrent assets

1,756

Miscellaneous expenses

2,399

Total non-operating expenses

13,771

9,267

85,018

1,487

13,642

2,951

27,073

13,706

125,743

110,543

88,795

814,633

Gain on contributions for construction

3,657
2,758

4,643

42,596

Income on sales of noncurrent assets

1,090

10,0004,636

42,532

1,356

12,440Ordinary income
Extraordinary income:

Other
Total extraordinary income

304

806

2,789

6,038

7,221

55,394Extraordinary loss:
Loss on reduction of noncurrent assets

4,042

Impairment loss (Note 6.3)

19,262

Loss on valuation of investment securities

361

399

Other

5,497

Total extraordinary loss

29,202

Income before income taxes

88,562

Income taxes – current

19,104

Income taxes – deferred

1,420

Total income taxes

20,525

Net income

68,036

Net income attributable to non-controlling interests

2,560

Net income attributable to owners of the parent

65,476

3,312

1,732

15,8908,086

74,18386,746

795,835

28,235

259,037

29,834

273,706

1,599

14,67056,911

522,119

2,051

18,81754,859503,294

Consolidated Statements of Comprehensive Income
Years ended March 31, 2019 and 2020

Millions of yen

2019

Net income¥ 68,036

Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

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 7)

Comprehensive income attributable to:
Owners of the parent

Non-controlling interests

Hankyu Hanshin Holdings Integrated Report 2020¥

Non-operating income:Comprehensive income

87

791,427（2,635）158（670）

Thousands of U.S. dollars

2020

¥

2020

56,911$522,119（5,122）（46,991）

（45）

（413）

314

2,881

2,945

（2,401）（22,028）（1,268）（5,364）（49,211）（1,471）（12,618）（115,761）

42,242

387,541

66,56564,2872,277

44,292

2,049

Financial Section and Corporate Data

Revaluation reserve for land (Note 5.5)

Total liabilities and net assets

¥

2020

Costs of revenues from operations:

Current liabilities:

Deferred tax liabilities

Thousands of U.S. dollars

2019

Revenues from operations

Liabilities:
Trade payables

Millions of yen

2020

406,349

18,798

Hankyu Hanshin Holdings Integrated Report 202088

Financial Section and Corporate Data

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2019 and 2020

Millions of yen

Thousands of U.S. dollars

Shareholders’equity

Shareholders’equity

Commonstock

CapitalsurplusRetainedearnings

Less treasury
stock, at cost

Total
shareholders’equityBalance as of March 31, 2018
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders
Change in scope of consolidation
Changes in equity in affiliates accounted
for by equity-method treasury stock
Net changes of items other than shareholders’equity
Total changes of items during the period¥99,474¥146,053¥583,482¥（24,247）¥804,764（10,199）
45（9,896）65,4762（10,199）
45

Balance as of March 31, 2019
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders
Change in scope of consolidation
Changes in equity in affiliates accounted
for by equity-method treasury stock
Net changes of items other than shareholders’equity
Total changes of items during the period
Balance as of March 31, 2020

99,474（9,896）65,476
2
0
537

537

146,591

58,248641,731（11,020）54,859
11

（0）

（0）

（10,153）（9,960）136（11,020）54,85911（9,960）136（0）6$912,606$1,344,872$5,887,440$（315,596） $7,829,330

Reversal of revaluation reserve for land

（101,101）（101,101）

503,294503,294

101

Purchase of treasury stock
Disposal of treasury stock（0）

Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders

（0）

101
（91,376）（91,376）

1,248

1,248

（0）

Change in scope of consolidation

55

Changes in equity in affiliates accounted
for by equity-method treasury stock

48,633

853,397

Less treasury
stock, at cost

Dividends from surplus

0（34,400）

Retainedearnings

Net income attributable to owners of the parent

2,666
0

Capitalsurplus

Changes of items during the period:

537
2,666

—

Balance as of March 31, 2019

Total
shareholders’equityCommonstock（0）（4,541）（4,486）00

Net changes of items other than shareholders’equity
Total changes of items during the period
Balance as of March 31, 2020—

55

397,752（90,128）

307,688912,606

1,344,936

6,285,202（405,725）

8,137,018

（0）
（495）

（489）
0

Thousands of U.S. dollars

0

Accumulated other comprehensive income—
99,474

6
146,598

43,355685,087（9,824）（44,224）

33,538886,935

Valuationdifference on Deferred gains oravailable-for-sale losses on hedges
securities

Balance as of March 31, 2019

$221,505$（2,982）

Revaluation
reserve for land

$50,670

Cumulative
Foreign currency
adjustments relatedtranslation
to retirement
adjustments
benefit plans$（1,495）$20,982

Total
accumulated
othercomprehensive
income$288,670

Non-controllinginterests

Total net assets$279,972$8,397,991

Changes of items during the period:（101,101）

Dividends from surplus
Net income attributable to owners of the parent

503,294
101

Reversal of revaluation reserve for land

89

Hankyu Hanshin Holdings Integrated Report 2020

¥27,146¥（494）¥5,575

¥607

¥125

1,248
（0）

Total
accumulated
othercomprehensive
income¥32,961

Non-controllinginterests¥28,786

Changes in equity in affiliates accounted
for by equity-method treasury stock

Total net assets

Net changes of items other than shareholders’equity（4,486）
0（94,963）

2,716

（101）

（2,413）（22,229）（117,009）

13,826（103,174）

Total changes of items during the period（94,963）

2,716

（101）

（2,413）（22,229）（117,009）

13,826

204,505

Balance as of March 31, 2020

126,532（257）

50,560（3,917）（1,248）

171,661

293,8078,602,495¥866,512（9,896）65,4762（10,199）
45
537
2,666
0

（3,001）（3,001）
24,144

168
168
（325）

（52）
（52）
5,523

（771）
（771）
（163）

2,161
2,161
2,287

（1,496）（1,496）
31,465

1,731
1,731
30,517

235
48,868915,381（11,020）54,85911（9,960）136

Financial Section and Corporate Data

Balance as of March 31, 2018
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders
Change in scope of consolidation
Changes in equity in affiliates accounted
for by equity-method treasury stock
Net changes of items other than shareholders’equity
Total changes of items during the period
Balance as of March 31, 2019
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders
Change in scope of consolidation
Changes in equity in affiliates accounted
for by equity-method treasury stock
Net changes of items other than shareholders’equity
Total changes of items during the period
Balance as of March 31, 2020

Revaluation
reserve for land

Disposal of treasury stock

Change in scope of consolidation

Accumulated other comprehensive income
Cumulative
Foreign currency
adjustments relatedtranslation
to retirement
adjustments
benefit plans（91,376）

Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders

Millions of yen

Valuationdifference on Deferred gains oravailable-for-sale losses on hedges
securities

Purchase of treasury stock

（0）
（489）
0
（10,351）（10,351）
13,792

296
296
（28）

（11）
（11）
5,511

（263）
（263）
（427）

（2,423）（2,423）（136）（12,754）（12,754）
18,711

1,507
1,507
32,025（11,246）
22,291
937,672

Hankyu Hanshin Holdings Integrated Report 2020

90

Financial Section and Corporate Data

Consolidated Statements of Cash Flows

Notes to the Consolidated Financial Statements

Years ended March 31, 2019 and 2020

Millions of yen

2019

Thousands of U.S. dollars

2020

1. Framework for Preparing Consolidated Financial Statements 

2020

Cash flows from operating activities:
Income before income taxes

1.1

¥

88,562¥

86,746$

795,835

Depreciation and amortisation

54,17256,542518,734

Impairment loss

19,262361

3,312

Amortisation of goodwill

2,240

2,426

22,257（4,962）（3,389）（31,092）

464（1,813）（16,633）

9

（49）

（450）

（1,496）（1,548）（14,202）

Interest expenses

9,615

9,267

85,018Loss on reduction of noncurrent assets

4,042

4,636

42,532

Loss on retirement of noncurrent assets

1,756

1,487

13,642(Income) losses on sales of noncurrent assets（2,746）（214）（1,963）Gain on contributions for construction（3,657）（4,643）（42,596）

399

1,356

12,440Equity in (income) losses of affiliates
Increase (decrease) in net defined benefit liability
Increase (decrease) in allowance for doubtful receivables
Interest and dividend income

Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables（718）

25,035

229,679（4,003）

2,803

25,716

1,094（17,884）（164,073）

Other（2,364）（17,718）（162,550）

Subtotal

161,672

143,400

1,315,596

4,533

4,362

40,018Interest paid

（9,627）（9,381）（86,064）

Income taxes (paid) refunded（30,542）（15,295）（140,321）

Net cash provided by operating activities

126,035

123,086

1,129,229

Decrease (increase) in inventories
Increase (decrease) in trade payables

Interest and dividends received

Proceeds from sales of noncurrent assets
Purchases of investment securities（137,809）
16,310（96,028）884（880,991）
8,110（11,744）（27,660）（253,761）

Receipt of contributions for construction

18,252

19,631

180,101

Expenditure for long-term loans receivable（430）（23,767）（218,046）

Other

（739）

（1,557）（14,284）（116,160）（128,498）（1,178,881）

Net cash used in investing activities

1,949

21,039193,018

Proceeds from long-term debt

30,45028,330259,908

Repayment of long-term debt

（41,278）（34,365）（315,275）

19,866

29,766

273,083

Redemption of bonds（20,000）（183,486）

Purchases of treasury stock（10,199）（9,960）（91,376）

Dividends paid

（9,896）（11,020）（101,101）

（378）

（526）

（4,826）

Dividends paid to non-controlling shareholders ofconsolidated subsidiaries

91

―

Other

（1,684）（2,298）（21,083）

Net cash used in financing activities（11,171）

964

8,844

Effect of exchange rate changes on cash and cash equivalents

consolidated financial statements and other reports

Preparation Methods of Consolidated Financial Statements” (Finance Ministry

its consolidated financial statements and other reports. In addition to

Ordinance No. 28 of 1976).

subscribing to related publications, it has joined the Financial AccountingStandards Foundation and participates in seminars and other events held by

1.2

Audit verification

the Foundation, audit firms and other relevant organisations to establish a

The Company’s consolidated financial statements for the fiscal year ended

system for understanding the accounting standards in detail and responding

March 31, 2020 (April 1, 2019 to March 31, 2020) were audited by KPMG

suitably to changes made to them. The Company also compiles 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 ¥109
= US$1, the prevailing exchange rate on the Tokyo Foreign Exchange Market
as of March 31, 2020.

2. Basis of Preparation of Consolidated Financial Statements 
2.1

Scope of consolidation

2.3

Items related to fiscal year-ends, etc., for consolidated
subsidiaries

2.1.1 Number and names of consolidated subsidiaries
Number of consolidated subsidiaries—93.

The account closing date for Hankyu Hanshin Express (USA) Inc., Hankyu

Names of primary consolidated subsidiaries are listed on page 117.

Hanshin Express (Deutschland) GmbH and 20 other consolidated subsidiaries

Further, as from the fiscal year ended March 31, 2020, PT. Hankyu

is December 31. The consolidated financial statements have been prepared

Hanshin Logistics Indonesia and one other company have been included inusing the financial statements based on the closing date of each company,

the scope of consolidation due to their increased significance.

and major transactions conducted between the individual closing dates andAlso, the following companies have been excluded from the scope

the consolidated closing date have been adjusted for as necessary for the
consolidation.

merger, Hankyu Hanshin Restaurants Co. Ltd. and one other company due toliquidation.

2.4

Accounting policies

2.4.1

Valuation standards and method 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 themoving 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 applied
Number of affiliates for which equity method is applied—11.

investments, however, the Company’s share of assets held by such

Names of primary companies are listed on page 117.

partnerships is recorded.

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 (Hankyu Mediax Co., Ltd., etc.) and affiliates(OS Co., Ltd., etc.) to which the equity method does not apply use the costIII. Inventories

method rather than the equity method because the total amounts of theira.

net income or loss (amount equivalent to equity interests), retained earnings(amount equivalent to equity interests) and other figures are limited, and theeffect on the consolidated financial statements as a whole is negligible.

Land and buildings for sale:
The identified cost method is applied. (Balance sheet values arecalculated by writing down book values based on decreased profitability.)b. Other inventories:

（551）

（7）

（64）

The moving average cost method is applied. (Balance sheet values are

Increase (decrease) in cash and cash equivalents（1,848）（4,454）（40,862）

calculated by writing down book values based on decreased profitability.)

Cash and cash equivalents at beginning of year

27,501

27,589253,110

Increase in cash and cash equivalents from newly
consolidated subsidiary

1,935

391

3,587

Cash and cash equivalents at end of year

27,58923,526

215,835

Hankyu Hanshin Holdings Integrated Report 2020

Financial Section and Corporate Data

Net increase (decrease) in short-term borrowings

Special measures to ensure the appropriateness of

The Company makes special efforts to ensure the appropriateness ofeffect on the consolidated financial statements as a whole is negligible.

Cash flows from financing activities:

Proceeds from new bonds issued

1.3

accordance with the “Regulations Concerning Terminology, Forms, andof consolidation; Hankyu Denen Bus Co. Ltd. due to extinguishment in a

Cash flows from investing activities:
Purchases of noncurrent assets

Method of preparation for consolidated financial statements

The Company’s consolidated financial statements were prepared inHankyu Hanshin Holdings Integrated Report 202092

Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

2.4.2

Depreciation methods for major depreciable assets

Notes to the Consolidated Financial Statements

2.4.6

Significant hedge accounting methods

I.

Property and equipment (excluding leased assets)

I.

a.

Replacement assets of railway operations:Deferred hedge accounting is applied.
Exceptional accounting applies to interest rate swaps that satisfy the

Replacement method (mainly the declining-balance method) is applied.
b. Other property and equipment:

requirements for exceptional accounting for interest rate swaps.

I.

Other significant matters for preparing consolidated financial

III. Adoption of consolidated tax payment system

statements

A consolidated tax payment system has been adopted.

Accounting for contributions for construction in railway operations

The Company accepts contributions for construction from local governments
and other organisations that cover a portion of construction expenses arisingIV.	Application of tax effect accounting for the transition from a consolidated
tax payment system to a group taxation system

While property and equipment (excluding leased assets) are depreciated

Designation accounting applies to foreign currency-denominatedfrom the construction of continuous grade separations in railway operations.

With regard to paragraph 3 of “Practical Solution on the Treatment of Tax

for the most part using the declining balance method, there is also somereceivables and payables that have forward exchange contracts and which

When construction is completed, noncurrent assets acquired as a result of

Effect Accounting for the Transition from the Consolidated Taxation System touse of the straight-line method.

satisfy the requirements for designation accounting.

accepting these contributions for construction are recognised at acquisition

the Group Tax Sharing System” (PITF No.39, March 31, 2020), the Company

cost after deducting the amounts equivalent to the said contributions forand its domestic consolidated subsidiaries did not follow paragraph 44 of

construction.

“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28,

However, regarding the abovementioned “Replacement assets of

II.

2.4.9

Method of hedge accounting

railway operations” and “Other property and equipment,” depreciation ofII.

Hedging instruments and hedged items

buildings acquired on or after April 1, 1998 (excluding facilities attached

Main hedging instruments and hedged items are as follows:

to buildings) and depreciation of facilities and structures that are

a. Hedging instruments: Forward exchange contracts, currency swap

In the consolidated statements of income, gain on contributions for

February 16, 2018), but applied provisions of pre-amended tax laws whenconstruction is recognised in extraordinary income, and the acquisition

calculating the amounts of deferred tax assets and liabilities that relate toattached to buildings and which were acquired on or after April 1, 2016

contracts, currency option contracts

cost of noncurrent assets, after deducting the amounts equivalent to thetransitioning to a group taxation system and related amendments of tax laws

are calculated using the straight-line method.

Hedged items: Foreign currency receivables and payables and futurecontributions for construction, is recognised in extraordinary loss as loss on

for transitioning to a single tax payment system.

foreign currency transactions

reduction of noncurrent assets.

Intangible assets (excluding leased assets)b. Hedging instruments: Interest rate swap contracts, interest rate option

Intangible assets (excluding leased assets) are amortised using the straight-

contractsII.

line method.

Hedged items: Loans payable and bonds

Accounting for consumption tax is based on the tax exclusion method.

Accounting for consumption tax

Internal-use software is amortised by the straight-line method over its
useful life (mainly 5 years).

III. Hedging policy
The Group is exposed to the risk of foreign exchange and interest rate

III. Lease assets

fluctuations and uses derivatives as a means of hedging these risks.

Lease assets are depreciated using the straight-line method with the leaseterm as the useful life and the residual value as zero.

IV. Method for evaluating the effectiveness of hedges
Other than when the effectiveness of hedges is obvious, hedge effectiveness

2.4.3
I.

Accounting standards for significant transactions

is evaluated semiannually using the comparison and analysis method.

Allowance for doubtful receivables

Allowance for doubtful receivables is provided based on the ratio of past

V. Other risk management methods concerning hedge accounting

loan loss experience for general accounts and individually estimatedInternal rules regarding the segregation of duties, maximum transaction

uncollectible amounts for certain individual accounts.

amounts, etc., have been established for the use of derivative transactions
based on which derivative transactions are used. The implementation andII.

Provision for bonuses

management of derivative transactions are carried out by the accounting

The Company recognises as provision for bonuses the amount expected todepartment with the approval of the decision makers in each Group

be paid to employees as bonuses for the fiscal year.

company. An internal control system has been developed to ensure that thecontract signing and termination comply with the internal rules.

2.4.4

Accounting methods for retirement benefits

In calculating the amount of retirement benefit obligations, the benefit formula2.4.7

method is used to distribute the estimated amount of retirement benefit into

Goodwill is amortised, in general, in equal amounts over five years. The

the period up to March 31, 2020.

goodwill resulting from the management integration with Hanshin Electric

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

Method and period of amortisation of goodwill

Railway Co., Ltd. in the fiscal year ended March 31, 2007 is being amortisedin equal amounts over 20 years.

remaining years of service of the employees at the time when these costs are
incurred.

2.4.8

Scope of cash included in consolidated statements of cash flows

Actuarial differences are recorded in expenses from the following

In preparing the consolidated statements of cash flows, cash on hand, readily

year using the straight-line method over a certain number of years (mainly

available deposits and short-term highly liquid investments without material

10 years), which is within the average remaining years of service of therisk of changing their value and with maturities not exceeding three months

employees at the time when these costs are incurred.

at the time of purchase are considered to be cash and cash equivalents.

Basis for converting significant assets and liabilities in foreign
currencies into Japanese yen

The assets and liabilities of overseas subsidiaries are converted into yen
based on the spot exchange rate on the balance sheet date, and income
and expenses of overseas subsidiaries are converted into yen based on the
average exchange rate during the relevant period. Differences in conversion
are included in foreign currency translation adjustments and non-controllinginterests in the net assets section.

(Accounting Standard for Revenue Recognition)
The following standard and guidance were issued but not yet adopted.
•	“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020)•	“Implementation Guidance on Accounting Standard for Revenue
Recognition” (ASBJ Guidance No. 30, March 31, 2020)•	“Implementation Guidance on Disclosures about Fair Value of Financial
Instruments” (ASBJ Guidance No. 19, March 31, 2020)•	“Accounting Standard for Measurement of Inventories” (ASBJ Statement
No. 9, July 4, 2019)•	“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019)•	“Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, July 4, 2019)•	“Implementation Guidance on Disclosures about Fair Value of Financial
Instruments” (ASBJ Guidance No. 19, March 31, 2020)(1) Outline(1) Outline

The International Accounting Standard Board (“IASB”) and the Financial

Given that the International Accounting Standards Board (IASB) and the

Accounting Standard Board (“FASB”) jointly developed comprehensive

Financial Accounting Standards Board (FASB) set out almost identical detailed

accounting standard for revenue recognition and the Revenue from Contracts

guidance for the measurement of fair value (respectively IFRS No. 13 “Fairwith Customers was issued in May 2014 (IFRS No. 15 by IASB, and Topic 606

Value Measurement” under International Financial Reporting Standards (IFRS)

by FASB).

and Accounting Standards Codification Topic 820 “Fair Value Measurement”

IFRS No. 15 was applied for annual reporting periods beginning onunder US-GAAP), the ASBJ released the “Accounting Standard Fair Valueor after January 2018, Topic 606 was also applied from annual reporting

Measurement” etc., in an effort to establish consistency between Japan’s

periods beginning December 15, 2017. Based on such a situation, the ASBJ

accounting standards and international accounting standards centering on

developed the comprehensive accounting standard for revenue recognition/

guidance and disclosure of the fair value of financial instruments.

the implementation guidance and issued them together.

On the ASBJ’s basic policy for development of accounting standard

On the ASBJ’s basic policy for development of accounting standard forfor fair value measurement, in order to enhance the comparability ofrevenue recognition, the basic principles of IFRS No. 15 were incorporated

financial statements between domestic and foreign companies the standard

into the ASBJ Statement No. 29 as starting points, the Statement was set out,

essentially adopted the entire provisions of IFRS No. 13. Moreover, withfrom the viewpoint of comparability among financial statements which is one

consideration for the accounting practice in Japan to date, to the extent

of merits for consistency with IFRS No. 15. If there are any items which shouldthat the comparability of financial statements is not materially impaired,be considered in current practices in Japan, alternative treatments would bealternative accounting treatments are provided for select items.

Financial Section and Corporate Data

2.4.5

3. Standards and Guidance Not Yet Adopted 

added to the extent of not losing the comparability.
(2) Effective date(2) Effective date

Effective from the beginning of the fiscal year ended March 31, 2022.

Effective from the beginning of the fiscal year ended March 31, 2022.
(3) Effects of the application of the standards(3) Effects of the application of the standards

The Company and its consolidated domestic subsidiaries are currently

The Company and its consolidated domestic subsidiaries are currently

in the process of determining the effects of these new standards on thein the process of determining the effects of these new standards on the

consolidated financial statements.

consolidated financial statements.
(Accounting Standard for Disclosure of Accounting Estimates)(Accounting Standard for Fair Value Measurement)•	“Accounting Standard for Fair Value Measurement” (ASBJ Statement No.

•	“Accounting Standard for Disclosure of Accounting Estimates” (ASBJ
Statement No. 31, March 31, 2020)

30, July 4, 2019)93

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 202094

Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements(1) Outline
The International Accounting Standards (IAS) released in 2003 by the(1) Outline

International Accounting Standards Board (IASB) require in No. 1 paragraph

The ASBJ, having been requested to consider improvements to the125, “Presentation of financial statements” (hereinafter referred to as “IAS

information to be provided in the notes to financial statements, implemented

5. Consolidated Balance Sheets 
5.1

Accumulated depreciation of property and equipment
Millions of yen1”) the disclosure of “Factors causing estimation uncertainty.” Since thisnecessary amendments to the “Principles and procedures of accounting

2019

disclosure is regarded as highly valuable for financial statement users, upontreatments to be adopted in cases where the stipulations of the relevant¥ 1,150,595

requests also for Japan’s accounting standards to include this disclosure

accounting standards, etc., are not clear,” and released the result as therequirement in the notes to financial statements, the ASBJ developed and“Accounting Standard for Accounting Policy Disclosures, Accounting Changes

released the “Accounting Standard for Disclosure of Accounting Estimates.”and Error Corrections.”

5.2

from the acquisition cost of noncurrent assets

Thousands of U.S. dollars
2020

2020

¥  1,177,475$  10,802,523

Millions of yen

On the ASBJ’s basic policy for development of accounting standard

Note that in taking steps to enhance the information to be provided infor disclosure of accounting estimates, rather than expanding the scope

the notes to financial statements under the “Principles and procedures of

5.3

of individual notes, the ASBJ defined ground rules (disclosure objectives)

accounting treatments to be adopted in cases where the stipulations of the

The following table shows the assets pledged as collateral. Amounts in parentheses (with specific disclosure contents left to the judgment of the reporting

relevant accounting standards, etc., are not clear” the standard takes overentity in accordance with the disclosure objectives, thus referencing in thethe provisions of the Notes on Business Accounting Standards (Note 1-2) todevelopment of this standard the provisions of IAS 1, paragraph 125.

avoid upsetting current established practice in cases where the provisions ofrelated accounting standards are clear.

(2) Effective date
Effective from the end of the fiscal year ended March 31, 2021.

(2) Effective date
Effective from the end of the fiscal year ended March 31, 2021.

(Accounting Standard for Accounting Policy Disclosures, Accounting Changes

Thousands of U.S. dollars

2019

2020

2020

¥ 445,997¥  449,278$  4,121,817

Pledged assets and secured liabilities) indicate those related to a railway foundation.

Millions of yen

Thousands of U.S. dollars
2020

2019

2020

Property and equipment:¥ 200,392¥ (200,392)¥  201,238¥  (201,238)$  1,846,220

Machinery, equipment and vehicles

Buildings and structures

50,614(50,614)50,423(50,423)

462,596$  （1,846,220）（462,596）

Land

242,100(242,100)

241,625(241,625)

2,216,743（2,216,743）

Other

3,018

(3,018)2,898(2,898)26,587（26,587）

118

(118)

179

(179)

1,642

（1,642）Intangible assets:

and Error Corrections)

Other•	“Accounting Standard for Accounting Policy Disclosures, Accounting

Investments and other assets:

Changes and Error Corrections” (ASBJ Statement No. 24, March 31,
2020)

Investment securities

438

(—)

292

(—)

2,679

(—)

Other

176

(—)

372

(—)

3,413

(—)

Total

496,859(496,244)

497,029(496,364)

4,559,899（4,553,798）

In addition to the above, the Company pledged investment securities (fiscal year ended March 31, 2019: 800 million yen, fiscal year ended March 31, 2020:

4. Additional Information 

800 million yen) as collateral for loans of third parties.

(Performance-based stock compensation plan for directors, etc., of the（2）Shares in the Company remaining under the trust

Company)

Shares in the Company remaining under the trust were listed as treasury（1）Outline of transaction

stock in the net assets section on a book value basis for trust (excluding

To further enhance motivation to improve corporate value and business

ancillary expenses). The book value of, and the number of shares of theperformance, and to provide an incentive regarding improving shareholder

treasury stock at the end of the fiscal year ended March 31, 2019 were 1,519

value, the Company has introduced a stock compensation system (hereinafter

million yen and 377,008 shares, and at the year ended March 31, 2020, arereferred to as the “System”) for directors of the Company in a position of

1,479 million yen and 367,308 shares respectively.

chairman or president.
Moreover, Hankyu Corporation, Hanshin Electric Railway Co. Ltd., andAccumulated contributions for construction directly deducted(Effects of the new coronavirus pandemic on accounting estimates)

Hankyu-Hanshin Real Estate Co. Ltd. have adopted the System for full-time

The effects of the new coronavirus pandemic are difficult to accurately

directors and corporate officers, excluding outside directors and nonresidents

predict both with regard to duration and extent. The fiscal year endingof Japan and employees of other companies on loan to Hankyu-Hanshin RealMarch 2021 to date has been subject to severe restrictions, such as

Estate Co. Ltd.

the government’s declaration of an emergency and requests from local

The System uses an officer compensation BIP (Board Incentive Plan)

governments to the general public to refrain from going out. The Company

trust, under which shares in the company will be provided to, and money

therefore prepares its accounting estimates including the recoverability ofequivalent to exchange value of shares in the company will be paid to,deferred tax assets, etc., on the premise that these effects will continue for a

directors and others based on performance and position.

certain period of time.

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
2020

2019

2020

Current liabilities:
Short-term borrowings

¥

9,446

Other

¥

(9,446)¥      9,784¥      (9,784)$     89,761$     （89,761）

(—)

120

(—)

1,101

(—)

90

Long-term liabilities:
Long-term debt

113,477(113,477)

114,522(114,522)

1,050,661（1,050,661）

Total

123,014(122,923)

124,427(124,307)

1,141,532（1,140,431）

5.4

The following table shows the securities of nonconsolidated subsidiaries and affiliates.
Millions of yen

Investment securities

Thousands of
U.S. dollars

2019

2020

2020

¥ 239,486¥  257,644$  2,363,706

Financial Section and Corporate Data

95

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Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

5.5

Notes to the Consolidated Financial Statements

Two consolidated subsidiaries and an equity-method affiliate

5.6

revaluated land for business use based on the Law Concerning

The Company and its subsidiaries provide a liability guarantee for loans of

Fiscal year ended March 31, 2019

Revaluations of Land (Law No. 34, promulgated on March 31,

the companies, etc., listed below.

Our Group recorded loss on impairment on the following asset groups.

1998) and the Law to Partially Modify the Law Concerning
Revaluations of Land (Law No. 19, promulgated on March 31,
2001). Of the valuation differences identified as a result of this,the consolidated subsidiaries recorded the amount corresponding
to the taxes on the valuation difference in the liability section
as “Deferred tax liabilities related to land revaluation” andthe amount attributable to minority shareholders as “noncontrolling interests.” The amount remaining after subtracting
these was recorded in the net assets section as “Revaluation

Contingent liabilities

6.3

Fiscal year ended March 31, 2019

Millions of yen

Millions of yen
Nishi-Osaka Railway Co., Ltd.

Use

¥ 18,204

Borrowers on loans for purchase of landand buildings

12,724

Overseas subsidiaries

3,426

Other (five companies)

Railway Operational Assets (1 item) (Note 1)

289

Total

Type

RegionAmountBuildings and Structures, etc.

Hyogo

¥ 19,163

Retailing Business Assets, etc. (20 items) (Note 2) Buildings and Structures, etc.

Osaka, etc.

99

(Method of asset grouping)

34,644

Our Group includes each business or property as group assets for account management purposes.

reserve for land.” The equity-method affiliate recorded theamount corresponding to its equity in the valuation difference

Loss on impairment

Note:
Fiscal year ended March 31, 2020

1.	In order to reduce train fares, the Kobe City Government approached our subsidiary Hankyu Corporation and proposed the commencement of discussions regarding the(after subtracting taxes) in the net assets section as “Revaluation

Millions of yen

Thousands of
U.S. dollars

unification of operation of the Hokushin Kyuko Electric Railway (Shin-Kobe Station–Tanigami Station) under the Kobe City Transportation Bureau. Hankyu Corporation came¥  17,266$  158,404

As a result, it was decided that the Group would aim to transfer railway assets related to the Hokushin Kyuko Electric Railway to the Kobe City Transportation Bureau in

Borrowers on loans for purchase of landand buildings

6,013

55,165the Enforcement Ordinance for the Law Concerning Land Revaluation

Overseas subsidiaries

5,473

50,211(Ordinance No. 119, promulgated on March 31, 1998).

Other (four companies)

reserve for land.”•	Revaluation methodNishi-Osaka Railway Co., Ltd.

The revaluation amounts were determined based on the revaluatedvalue of noncurrent assets provided for in Article 2, Paragraph 3 ofTotal

•	Date of revaluation: March 31, 2002
Thousands of
U.S. dollars

Millions of yen
2020

2019
Difference between themarket value as of March
31, 2020 of the lands forwhich reevaluation wasmade and the book valueof after reevaluation

2020

259

2,376

29,013

266,174

In addition to the above, overseas subsidiaries submitted letters of awarenessfor management guidance (fiscal year ended March 31, 2019: 1,957 million
yen, fiscal year ended March 31, 2020: 4,677 million yen) in connection withthe fund procurement of affiliates.

¥ (6,137)¥  (6,215)

to the conclusion that such efforts would contribute to the stimulation of the Kobe Sannomiya area, a key business location for our Group, and entered into the discussion.
the first half of fiscal 2021. A basic agreement was concluded on March 29, 2019. As a result, under extraordinary loss we recorded as loss on impairment (19,163 millionyen), the decline in value from book value of the railway operational assets to the amount recoverable.
2.	Under extraordinary loss we recorded as loss on impairment (99 million yen), the decline in value from book value to the amount recoverable for noncurrent assets forwhich it was decided that operations would be closed or dismantled.
(Breakdown of loss on impairment)
Millions of yen
Buildings and Structures¥ 15,954

Land, etc.

3,308

Total

19,262$  (57,018)(Method of calculation of the recoverable value)
We determined the recoverable value from the net liquidation value.
We used a value determined by the expected liquidation value or residual value with regard to net liquidation value.

Fiscal year ended March 31, 2020

6. Consolidated Statements of Income 
6.1

The breakdown of selling, general and administrative expenses
is shown below

Expenses

The retirement benefit expenses and the main expense items

Omitted as the significance was negligible.

and monetary amounts within the amounts of allowance andThousands of
U.S. dollars

Millions of yen
Personnel expenses

6.2

2019

2020

2020

¥ 14,752¥  12,175$  111,697

provision included in the costs of revenues from operations areshown below.
Millions of yen

7,686

10,691

98,083

Taxes

746

948

8,697

Retirement benefit expenses

Depreciation andamortisation

934

796

7,303

Provision for bonuses

Amortisation of goodwill

2,240

2,426

22,257

Total

26,361

27,039248,064

Thousands of
U.S. dollars

2019

2020

2020

¥ 7,797¥  6,377$  58,505

4,546

4,171

38,266

Financial Section and Corporate Data

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Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

8.2

7. Consolidated Statements of Comprehensive Income Reclassification adjustments and tax effects related to other comprehensive income
Millions of yen

Thousands of U.S. dollars

2019

2020

2020

¥ (4,193)¥ (8,550)(78,440)

365

1,268

11,633

Subtotal, before tax(3,827)(7,282)(66,807)

Tax (expense) or benefit

1,192

2,159

19,807

Valuation difference on available-for-sale securities(2,635)(5,122)(46,991)

Valuation difference on available-for-sale securities:
Increase (decrease) during the year
Reclassification adjustments

8.3

240

328

3,009

—

151

1,385

240

480

4,404

Tax (expense) or benefit

(82)

(165)

(1,514)

Deferred gains or losses on hedges

158

314

2,881

(670)

(45)

(413)

—

0

0

(670)

(45)

(413)

—

—

—

(670)

(45)

(413)

3,919

（2,769）(25,404)

Reclassification adjustments
Subtotal, before tax

Foreign currency translation adjustments:
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Foreign currency translation adjustments
Remeasurements of defined benefit plans:
Increase (decrease) during the year
Reclassification adjustments

594

（819）

(7,514)

Subtotal, before tax

4,513（3,588）(32,917)

Tax (expense) or benefit(1,568)1,186

10,881Remeasurements of defined benefit plans

2,945（2,401）(22,028)(1,294)(5,375)(49,312)

26

11

101

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(1,268)(5,364)(49,211)(1,471)(12,618)(115,761)

Items related to dividends

Fiscal year ended March 31, 2019
8.3.1

Deferred gains or losses on hedges:
Increase (decrease) during the year

Items concerning stock acquisition right

There is no relevant item.

Dividends paid
Dividends paid

Dividend per share(Millions of yen)

(Yen)

(Resolution)

Type of shares

June 13, 2018
Annual General Meetingof Shareholders

Common stock¥ 4,970

November 1, 2018
Board of Directors

Common stock

4,925

Record date

Effective date

¥ 20

March 31, 2018

June 14, 201820

September 30, 2018

December 3, 2018

Note:
1.	For the upper figure (the portion approved by a resolution at the annual General Meeting of Shareholders on June 13, 2018), the total amount of dividend
includes 7 million yen of dividend for the shares in the Company owned by the officer’s compensation BIP trust.
2. 	For the lower figure (the portion approved by a resolution of the Board of Directors on November 1, 2018), the total amount of dividend includes 7 million yenof dividend for the shares in the Company owned by the officer’s compensation BIP trust.

8.3.2

Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
(Resolution)

Type ofsharesJune 13, 2019
Annual General Meetingof Shareholders

Commonstock

Dividends paid
(Millions of yen)
¥ 4,925

Source ofdividends

Dividend per share(Yen)

Retainedearnings¥ 20

Record date

Effective date

March 31, 2019

June 14, 2019

Note: T he total amount of dividend includes 7 million yen of dividend for the shares in the Company owned by the officer’s compensation BIP trust.

Fiscal year ended March 31, 2020

8.4

Matters concerning types and total number of outstanding shares, and types and number of outstanding treasury stock

8. Consolidated Statements of Changes in Net Assets 

Common stock
Total

Matters concerning types and total number of outstanding shares, and types and number of outstanding treasury stock
Number of shares as of April 1, 2018

Increase in number of shares

Decrease in number of shares

Number of shares as of March 31, 2019

254,281——254,281254,281——254,281

7,262

2,290

11

9,541

7,262

2,290

11

9,541

Number of shares issued:
Total
Treasury stock, at cost:
Common stock (Notes 1, 2 and 3)
Total

Decrease in number of shares

Number of shares as of March 31, 2020

254,281——254,281254,281——254,281

Treasury stock, at cost:(Thousands of shares)

Common stock

Increase in number of shares

Number of shares issued:

Fiscal year ended March 31, 2019

8.1

(Thousands of shares)
Number of shares as of April 1, 20191.	The number of treasury stock at the end of the fiscal year ended March 31, 2019 includes 377,008 shares in the Company owned by the officer’s compensation BIP

Total

9,541

2,529

34

12,036

9,541

2,529

34

12,036

Notes:
1.	The number of treasury stock at the end of the fiscal year ended March 31, 2020 includes 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 treasury stock of common stock consists 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.

Financial Section and Corporate Data

Notes:

Common stock (Notes 1, 2 and 3)

3.	The decrease of 34 thousand shares treasury stock of common stock consists 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 change in equity ratio against affiliates to which the equity method is applicable.

trust.
(Overview of reasons for fluctuations)
2.	The increase of 2,290 thousand shares of treasury stock of common stock consists of: 2,244 thousand shares acquired upon the resolution of the Board of
Directors’ meeting, 30 thousand shares acquired by the officer’s compensation BIP trust, and 16 thousand shares created by the purchase of odd-lot shares.

8.5

Items concerning stock acquisition right

There is no relevant item.

3.	The decrease of 11 thousand shares treasury stock of common stock consists of: 10 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 change in equity ratio against affiliates to which the equity method is applicable.

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Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

8.6

Notes to the Consolidated Financial Statements

Items related to dividends

11. Financial Instruments 

Fiscal year ended March 31, 2020
8.6.1

Dividends paid
(Resolution)

June 13, 2019
Annual General Meetingof Shareholders
November 1, 2019
Board of Directors

Type of shares

Dividends paid
(Thousands of
U.S. dollars)(Millions of yen)

Common stock

Dividend per share¥ 4,925(Yen)$ 45,183

Record date

(U.S. dollars)¥ 20$ 0.18

Effective date

March 31, 2019

June 14, 2019

Common stock

6,094

55,90825

0.23

September 30, 2019

December 2, 2019

1.	For the upper figure (the portion approved by a resolution at the annual General Meeting of Shareholders on June 13, 2019), the total amount of dividend
includes 7 million yen of dividend for the shares in the Company owned by the officer’s compensation BIP trust.
2. 	For the lower figure (the portion approved by a resolution of the Board of Directors on November 1, 2019), the total amount of dividend includes 9 million yenof dividend for the shares in the Company owned by the officer’s compensation BIP trust.

Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
(Resolution)

June 17, 2020
Annual General Meetingof Shareholders

is exposed to interest rate fluctuation risk (market risk), which is limited by fixing

11.1.1 Policy on financial instrumentsinterest rates through interest rate swap transactions. In addition, liquidity risk—

It is the Group’s policy to limit the investment of its funds to short-term deposits

the risk that payment will not be made by the due date—is limited by the timely

which are highly secure, and the Group raises funds mainly through loans frompreparation of financing plans and proper fund management. Also, surplus funds offinancial institutions, bonds and commercial paper. Derivative transactions are

the Group companies are concentrated and used effectively through centralisation

used to avoid risk, as discussed later, and it is our policy to refrain from speculativeof Group funds by using a cash management system. The immediate raising of funds

transactions.

from financial institutions became possible through the establishment of backup
financing such as commitment lines. In addition, the Company maintained a proper

Note:

8.6.2

11.1 Matters regarding financial instruments

Dividends paid

Type ofshares(Millions of yen)

Commonstock(Thousands of
U.S. dollars)¥ 6,094$ 55,908

Source ofdividends
Retainedearnings

Record date

(U.S. dollars)¥ 25

funds by using multiple financial institutions, thus securing liquidity.

management system
Trade receivables, namely note receivables and trade account receivables, are exposed

Regarding the use of derivative transactions, internal regulations prescribe theto the credit risk of customers. The Group limits its exposure to this credit risk by

division of duties and transaction limits. Forward exchange contracts are used

controlling due dates and balances by customer and by making periodical checks ofto hedge exchange rate fluctuation risk involved in a portion of foreign currency-

the credit conditions of major customers pursuant to the internal regulations of each

denominated assets and liabilities. The purpose of interest rate swap transactions

company.

is to hedge the interest rate fluctuation risk of certain loans. These derivative

Investment securities consist mainly of stocks and bonds and are exposed totransactions involve credit risk because if the other party to a transaction defaults

market price fluctuation risk. However, fair values and the financial condition of theunder the terms of contract or becomes bankrupt then the benefit that would haveissuers are checked periodically, and the risk management system is confirmed.

been obtained in the future if the transaction had continued will not be received.

Almost all trade payables, namely note payables and trade account payables, have

Dividend per share(Yen)balance between direct financing and indirect financing and diversifies the raising of

11.1.2 Details of the financial instruments used, the risk involved and the risk

$ 0.23

Effective date

March 31, 2020

June 18, 2020

Note: The total amount of dividend includes 9 million yen of dividend for the shares in the Company owned by the officer’s compensation BIP trust.

However, credit risk is limited by carrying out transactions only with financial

a payment date that falls within one year. Some assets and liabilities denominated ininstitutions with high credit ratings.

foreign currencies are exposed to exchange rate fluctuation risk (market risk), which isMore information regarding the means and objectives of hedging, hedging

limited through forward exchange contracts.

policy and the method of evaluating the effectiveness of hedges related to hedge

Short-term borrowings and commercial paper are used mainly to raise short-accounting for derivative transactions is described in Note 2.4, “Accounting

term funds for working capital, and long-term debt and bonds are used mainly to raise

policies,” and Note 2.4.6, “Significant hedge accounting methods,” outlined in Notethe long-term funds necessary for capital investment plans. Some floating-rate debt

2, “Basis of Preparation of Consolidated Financial Statements.”

11.2 Matters regarding fair values of financial instruments
Book value recorded in the consolidated balance sheet, fair value and differences between them are as shown below.

9. Consolidated Statements of Cash Flows Millions of yen

Thousands of
U.S. dollars

Millions of yen
Cash and deposits in the consolidated balance sheets

2019

2020

2020

¥ 28,856¥   25,023$ 229,569(1,444)(1,497)(13,734)

177

—

—

27,58923,526

215,835

Deposits with maturities over 3 months
Securities
Cash and cash equivalents in the cash flow statements

Thousands of U.S. dollars
2020

2019

Relationship between cash and cash equivalents at fiscal year-end and amounts shown on consolidated balance sheets

2020

Book value

Fair value

DifferenceBook value

Fair value

DifferenceBook value

Fair value

Difference(1) Cash and deposits¥ 28,856¥ 28,856¥—¥   25,023¥   25,023¥         —$   229,569$    229,569$         —(2) Trade receivables

93,154

93,154—68,36668,366—627,211627,211—(3) Investment securities

42,402

42,402—

33,64733,647(0)308,688308,688(0)—AssetsLiabilities(4) Trade payables

48,05448,054—29,50829,508—

270,716

270,716(5) Short-term borrowings (*1)

102,670

102,670—

123,710

123,710—

1,134,954

1,134,954—(6) Bonds (*2)

112,000

115,136

3,136

122,000

123,633

1,633

1,119,266

1,134,248

14,982(7) Long-term debt (*1)

655,740

676,259

20,518649,755

665,220

15,464

5,961,055

6,102,936

141,872

(514)

(514)

—

(205)

(205)

—

(1,881)(1,881)—(8) Derivative transactions (*3)(*1) Current portion of long-term debt is included in (7) Long-term debt.

10. Lease Transactions (*2) Current portion of bonds is included.

<As lessee><As lessor>

Future lease payments for non-cancellable leases in connection with

Future lease receivables for non-cancellable leases in connection with

operating lease transactions

operating lease transactions

Notes:

Thousands of
U.S. dollars

Millions of yen

2019

2020

2020

Due within one year

¥ 5,187¥   7,583$   69,569

Due within one year

Due after one year

22,68363,913586,358

Total

27,87071,496655,927

Thousands of
U.S. dollars

2019

2020

2020

2,436

¥    2,721$   24,963

Due after one year

22,74020,350186,697

Total

25,177

23,071

211,661¥

Financial Section and Corporate Data

Millions of yen(*3) The net receivables/liabilities incurred as a result of derivative transactions are shown in net figures, net liabilities are shown in parenthesis.

1. Method for calculating 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
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 categorised by the purpose for which they are held are described in Note 13, “Securities.”(4) Trade payables, (5) Short-term borrowings
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.
(6) Bonds
The fair values of bonds are based on market prices.
(7) Long-term debt
The fair value of fixed-rate long-term debt is based on a method of calculation whereby 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.
(8) Derivative transactionsPlease see Note 13, “Derivatives.”

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Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

12. Securities 

2. The book value of financial instruments whose fair value is extremely difficult to ascertain
Thousands of
U.S. dollars

Millions of yen
2019

2020

2020

¥ 6,327¥  6,523$  59,844

3,555

5,136

47,119Classification
Non-listed equity securities and bonds
Investments in limited liability investment partnerships and similar investments

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
The fair value of financial instruments is based on market price. If market prices are not available, the fair value of financial instruments is reasonably calculated.
Certain assumptions are used to calculate the value. As a result, if different assumptions are used, the values may differ. For derivative contracts, the amount of thecontract which is indicated in Note 13, “Derivatives” does not indicate the market risk involved in derivative transactions themselves.

12.1 Available-for-sale securities
Millions of yen

Classification
Securities withbook value
exceedingacquisition cost

(1) Equity securities

2020

2020

Book value

Acquisition
cost

DifferenceBook value

Acquisition
cost

DifferenceBook value

Acquisition
cost

Difference¥ 38,684¥ 24,122¥ 14,562¥  26,407¥  18,373¥  8,034$  242,266$  168,560$  73,706(2) Bonds

Securities withbook value
not exceedingacquisition costThousands of U.S. dollars

2019

438

428

9

292

287

5

2,679

2,633

46

Subtotal

39,122

24,55014,571

26,69918,6608,039

244,945

171,19373,752Equity securities

3,280

3,582

(302)

6,937

7,985

(1,048)63,64273,257（9,615）

Subtotal

3,280

3,582

(302)

6,937

7,985

(1,048)63,64273,257（9,615）42,402

28,133

14,26933,637

26,646

6,990

308,596244,459

64,128

Total

Notes: U nlisted equity securities and others (fiscal year ended March 31, 2019: 9,883 million yen, fiscal year ended March 31, 2020: 11,659 million yen) are notincluded in the above table because it is extremely difficult to determine their market value as there are no market price therefor and future cash flows

5. Redemption and repayment schedule of monetary claims and investment securities with maturities

cannot be reasonably estimated.

Fiscal year ended March 31, 2019
Millions of yen
Due after one
Due within one
year through five
year
years
¥

—

12.2 Securities for which impairment loss has been recorded

Due after five
years throughten years¥—

Fiscal year ended March 31, 2019

Due after ten
years

Cash and deposits¥ 28,856

Trade receivables

93,154

—

—

¥

—

141

261

34

300

122,152

261

34

300

Omitted as the significance was negligible.

—

Fiscal year ended March 31, 2020
Impairment loss of 1,356 million yen recorded for investment securities (shares in available-for-sale securities).

Investment securities:
Available-for-sale securities with maturities(government bonds, etc.)
Total

13. Derivatives 
13.1 Derivative transactions for which hedge accounting has not been applied
Currency

Fiscal year ended March 31, 2020
Millions of yen
Due after one
Due within one
year through five
year
years

Fiscal year ended March 31, 2019

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

Cash and deposits¥   25,023¥     —

¥     —

¥     —

$ 229,569$       —

$      —

$      —

Trade receivables

68,366———627,211———

Investment securities:
Available-for-sale securities with maturities(government bonds, etc.)
Total

Millions of yen

Due after ten
years

59

223

10

300

541

2,046

92

2,752

93,449

223

10

300

857,330

2,046

92

2,752

Classification
TypeTransactions
Currency swap contracts:
other than market
Receive yen, pay US dollartransactions
Total

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)

Valuation
gain/loss

598

598

(49)

(49)

598

598

(49)

(49)

Fiscal year ended March 31, 2020
Millions of yen

6. Amount of planned redemption and repayment of bonds and long-term debt after the consolidated closing dateFiscal year ended March 31, 2019
Millions of yen
Due after one
Due within one
year through five
year
years

Total

Due after ten
years¥ 20,000¥ 52,000¥ 10,000¥ 30,000

34,365222,245

275,383

123,745

54,365274,245285,383

153,745

Long-term debt
Total

¥ 25,000¥   27,000

Valuation
gain/loss

Contract
amountPortion ofcontract
amountexceeding
one year

Fair value(Note)

Valuation
gain/loss¥    598¥   —¥  (53)¥  (53)$  5,486$   —$  (486)$  (486)

Type
Receive yen, pay US dollar
Forward exchange contracts:
Buy contractTransactions
other than market
transactions

Millions of yen

Bonds

Fair value(Note)

Currency swap contracts:

Fiscal year ended March 31, 2020

Due after one
Due within one
year through five
year
years

Contract
amountThousands of U.S. dollars

Euro

10,245

—

（128）

（128）

93,991—(1,174)(1,174)

US dollar

4,124

—

66

66

37,835

—

606

606

Swiss franc

1,052

—

28

28

9,651

—

257

257

Canadian dollar

891

—

（52）

（52）

8,174

—

(477)

(477)

Singapore dollar

448

—

（14）

（14）

4,110

—

(128)

(128)

Australian dollar

344

—

（38）

（38）

3,156

—

(349)

(349)
(46)

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

New Zealand dollar

79

—

（5）

（5）

725

—

(46)

South African rand

46

—

（6）

（6）

422

—

(55)

(55)

¥   30,000¥   40,000$  229,358$   275,229$   366,972

Total

17,831

—

(204)

(204)

163,587—(1,872)(1,872)$   247,706

34,696

264,556

249,770

100,732

318,3122,427,119

2,291,468

924,147

59,696

291,556

279,770

140,732

547,6702,674,826

2,566,697

1,291,119

Financial Section and Corporate Data

Bonds
Long-term debt

Classification

Due after five
years throughten years

Thousands of U.S. dollars

Portion ofcontract
amountexceeding
one year

Notes:
1. Fair value calculation
Fair value is based mainly on prices quoted from counterparty financial institutions.
2. Regarding the above currency swap contracts, in nonconsolidated financial statements hedge accounting is applied for monetary payables and receivables related
to transactions between consolidated subsidiaries. In consolidated financial statements, however, hedge accounting is not applied because the said hedged items
are eliminated.

103

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Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

13.2 Derivative transactions for which hedge accounting has been applied

Fiscal year ended March 31, 2020

Millions of yen

Classification

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)¥       16¥      —

¥       0$      147

$      —

$      0

500

—

(3)

4,587

—

（28）

13.2.1 Currency
Fiscal year ended March 31, 2019
Classification

Millions of yen
Main hedged
items

Type

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)

Sell contract

Trade receivables

Japanese yen¥

US dollar
PrimarymethodPound sterling
Buy contract

8

¥

—

¥

0

5

—

0

1

—

0

Buy contract(forecast transactions)

US dollar
13

US dollar

17

—

(0)

Singapore dollar

0

—

(0)

Sell contract

Euro

0

—

(0)

US dollar

Indian rupee

Trade payables(forecast transactions)3

11,881

—

28

—

(1)

312

—

(9)

148

—

1,358

—

Trade receivablesDesignationof forward
exchange
contracts,
etc.

Trade payables
1,064

—

9,761

—

568

—

5,211

—

Hong Kong dollar

164

—

1,505

—

Thai baht

(11)

67

—

Australian dollar

—

(10)

36

New Zealand dollar—

2Singapore dollar

102

—

1

10

—

0

(400)

US dollar

6,910

—

(29)

Canadian dollar

1,096

—

(31)

Swiss franc

1,000

—

Australian dollar

617

Singapore dollar

427

New Zealand dollar
South African rand

US dollar

Forward exchange contracts
Trade receivables
143

615

—

—

330

—

29

—

266

—

24

—

220

—

Pound sterling

21

—

193

—

Canadian dollar

12

—

110

—

South African rand

7

—

64

—

2

—

18

—

3,994

—

36,642—

Swiss franc

—

Total

Trade payables(Note 2)(0)(Note 2)

(0)

Note:

US dollar

1,329

—

Euro

1,283

—

Australian dollar

112—

Singapore dollar

100—

Hong Kong dollar

59—

New Zealand dollar

58—

Thai baht

50—

13.2.2 Interest rate

Pound sterling

13—

Fiscal year ended March 31, 2019

Canadian dollar

10—South African rand

4—

Swiss franc

1—

27,487

—

Total

—

34

Euro

—

US dollar

1,295

Forward exchange contracts

Buy contract
13,311

Buy contract

Trade payables

Buy contract

Trade payables—

Sell contract

Trade payables

Japanese yen

803

Euro

Trade receivables

US dollar

Forward exchange contracts

Forward exchange contracts

Designationof forward
exchange
contracts,
etc.

Sell contract

Japanese yen

Buy contract

Main hedged
items

Forward exchange contracts
PrimarymethodForward exchange contracts

Type

Thousands of U.S. dollars

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.
(Note 2)Millions of yen(465)

ClassificationExceptional
accounting ofinterest rate
swaps

Type
Interest rate swap contracts:
Pay fixed rate/
Receive floating rate

Main hedged
itemsLong-term debt

Total

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)¥ 167,551¥ 159,801¥ (10,329)

167,551

159,801(10,329)

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)

Contract
amountPortion of contract
amount exceeding
one year

Fair value(Note)¥   151,897¥   147,300¥   (8,914)$  1,393,550$  1,351,376$  (81,780)

151,897

147,300(8,914)$  1,393,550$  1,351,376$  (81,780)

Fiscal year ended March 31, 2020

TypeInterest rate swap contracts:
Pay fixed rate/
Receive floating rate
Total

Main hedged
itemsLong-term debt

Thousands of U.S. dollars

Financial Section and Corporate DataClassificationExceptional
accounting ofinterest rateswaps

Millions of yen

Note: Fair value is based mainly on prices quoted from counterparty financial institutions.

105

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Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

14. Retirement Benefits 
14.1 Overview of retirement benefit plans
The Company and some consolidated subsidiaries provide a defined benefit plan (defined benefit pension plan and lump-sum payment plan) or a defined

14.2.7 Items relating to plan assets

14.2.8 Items relating to actuarial assumptions(I) Breakdown of major plan assets

Major actuarial assumptions

Ratio of the major types of assets to total assets are as follows:

contribution plan. Hankyu Corporation has set up the retirement benefit trust.

2019

2020

Bonds

34%

37%

the same accounting treatment as it used for defined contribution plans when the amount of plan assets corresponding to contributions by the Company cannot be

Equity securities

34

31

rationally calculated.

Cash and deposits

22General accounts of life insurance

27

28

Other

3

2

Total

100

100

In addition, some consolidated subsidiaries subscribe to the employees’ pension funds plan in the multi-employer plan. Among them, the Company has used

14.2 Defined benefit plan

14.2.4 The breakdown of retirement benefit expenses

14.2.1 Table of movement in retirement benefit obligations

Balance at beginningof the year

2019

2020

2020

¥ 133,360¥  133,751$ 1,227,073

Service costService cost

8,020

7,933

72,780Interest cost

297

254

2,330

Actuarial loss (gain)
Retirement benefits paid
Past service cost

(418)

53

(6,613)(9,562)（87,725）

(877)

—

―

—

(443)

（4,064）

(18)

36

330

133,751

132,022

1,211,211

Decrease resulting fromthe end of the retirement
benefit plan system
Other
Balance at end of the year

486

Note: Amounts in the table above include the retirement benefit obligationsof consolidated subsidiaries using simplified methods.

Thousands of
U.S. dollars

2019

2020

2020

¥ 81,767¥   86,137$  790,248

Expected returnon plan assets

1,131

1,087

9,972

Actuarial loss (gain)

2,622（2,715）（24,908）

Contribution paidby the employer

4,173

4,001

36,706Retirement benefits paid

(3,470)(5,145)（47,202）

Other
Balance at end of the year2020

¥ 8,020¥  7,933

2020
72,780

297

254

2,330

(1,131)(1,087)(9,972)

732

(680)

(6,239)

(138)

(138)

(1,266)

58

49

450

Retirement benefit expenses

7,838

6,329

58,064

Loss resulting from the endof the retirement benefit
plan system

―

293

2,688

7,838

6,623

60,761Expected return on plan
assetsAmortisation of actuarial
differencesAmortisation of past service
cost
Other

Total

—

(737)

(88)

10

92

86,137

82,638758,147

subsidiaries using simplified methods.

obligations and of plan assets, and the liabilities for retirement benefit

made extra retirement payments of 0 million yen in the fiscal year ended

Unfunded retirement benefit
obligations

2020

2020

¥ 72,458¥  70,521$  646,982(86,137)(82,638)（758,147）(13,678)(12,116)（111,156）

61,292

61,500564,220Total net defined benefit
liability and asset

47,61449,383453,055

Net defined benefit liability

62,20963,020578,165

Net defined benefit asset(14,595)(13,636)（125,101）Total net defined benefit
liability and asset

47,61449,383453,055

Mainly 2.0%

Mainly 2.0%

Mainly 2.0%

14.3 Defined contribution plan
The amount of the required contribution for the consolidated subsidiaries’
defined contribution plan (including employees’ pension funds plan in themulti-employer plan to which the same accounting method is applied as for(II) Method of determining the long-term expected rate of return on plan

March 31, 2019 and 43 million yen in the fiscal year ended March 31, 2020.

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.

15. Deferred Tax Thousands of U.S.
dollars

Millions of yen
2019

2020

2020

Deferred tax assets:
Gain on donation by related companies for tax purposes.

¥ 55,122¥   55,122$  505,706

fiscal year ended March 31, 2020 the Company made extra retirement

Net defined benefit liability

15,326

15,891

145,789

payments of 30 million yen, which were recorded as operating expenses

Loss on impairment of fixed assets

12,985

12,784

117,284

and extraordinary loss.

Temporary difference related to investments in subsidiaries

11,021

11,021

101,110

Loss on revaluation of real estate for sale

9,271

9,162

84,055

Tax loss carryforwards (Note 1)

8,349

5,736

52,624

Loss on adjustment of transferred profit and loss

5,844

5,614

51,505

Unrealized profit from assets

5,118

5,302

48,642The breakdown of items related to remeasurements of defined benefit

Provision for bonuses

1,809

1,648

15,119plans (prior to the deduction of the tax effect) is as follows:Enterprise taxes and business office taxes

836

1,519

13,936

Losses on revaluation of investment securities

728

579

5,312

9,053

9,215

84,541

3. Loss resulting from the end of the retirement benefit plan system isincluded in the “Other” section in extraordinary loss.
14.2.5	Remeasurements of defined benefit plans

Thousands of
U.S. dollars

Millions of yen
2019

2020

2020

¥ 739

¥   
（138）

$   
（1,266）

Actuarial differences

3,774（3,450）（31,651）

Total

4,513

（3,588）（32,917）

Past service cost

Other
Subtotal of deferred tax assets

135,468

133,598

1,225,670

Valuation allowance from tax loss carryforwards (Note 1)(2,872)(2,546)（23,358）

Valuation allowance from the total of future deductible temporary
differences(77,312)(77,364)（709,761）

Subtotal of valuation allowance(80,185)(79,910)（733,119）Less amounts offset against deferred tax liabilities(48,317)(46,731)（428,725）

6,965

6,956

63,817

Total deferred tax assets
14.2.6 Cumulative adjustments of retirement benefit plans
The breakdown of items related to cumulative adjustments ofThousands of
U.S. dollars

2019

Mainly 2.0%

Expected rate of salary increase

March 31, 2019, which was recorded as operating expenses. In thebalance sheet, as of the end of fiscal year
Millions of yen

Long-term expected rate of return onplan assets

Deferred tax liabilities:

retirement benefit plans (prior to the deduction of the tax effect) is asGain on reversal of difference from land revaluation (Note 2)(130,553)(130,478)（1,197,046）

follows:

Revaluation of assets on consolidation(78,653)(78,321)（718,541）

Net unrealized holding gains on securities(14,760)(12,217)（112,083）

Reserve for reduction of noncurrent assets(3.508)(3,449)（31,642）Gain on valuation of properties of business reorganization(1,769)(1,745)（16,009）

Other(2,239)(2,110)（19,358）(231,485)(228,322)（2,094,697）

Thousands of
U.S. dollars

Millions of yen
Unrecognized past service
costUnrecognized actuarial
differences
Total

2019

2020

2020

¥ (1,042)¥   (903)$   (8,284)(3,534)

(84)

(771)

(4,576)(987)(9,055)

Note: The above relates to consolidated subsidiaries. In addition to the

Financial Section and Corporate Dataand assets for retirement benefit recorded in the consolidated

Mainly 0.0%

the defined contribution plan) was 49 million yen in the fiscal year ended

1. Amounts in the table above include the retirement benefit expenses of

14.2.3 Table of reconciliation between the balance of retirement benefit

Plan assets

12% of total plan assets in the current fiscal year.

2020

Mainly 0.0%

15.1 Significant components of the Company’s deferred tax assets and liabilities

Notes:（6,761）

Note: Amounts in the table above include the plan assets of consolidated

Funded retirement benefit
obligations

plan constituted 12% of total plan assets in the previous fiscal year and2. In addition to the retirement benefit expenses shown above, the Company

Millions of yen

Decrease resulting fromthe end of the retirement
benefit plan system

Interest cost2019

Note: The retirement benefits trust established for the Company’s pension

consolidated subsidiaries using simplified methods.

14.2.2 Table of movement in plan assets

Balance at beginningof the year

Millions of yen

Thousands of
U.S. dollars

Millions of yen

Thousands of
U.S. dollars

2019
Discount rateSubtotal of deferred tax liabilities
Less amounts offset against deferred tax assets

48,317

46,731

428,725Total deferred tax liabilities(183,167)(181,590)（1,665,963）

Net deferred tax liabilities(176,201)(174,634)（1,602,147）

above items, the remeasurements of defined benefit plans include
unrecognized items (the amount corresponding to equity) of equitymethod affiliates.

Note: Amounts in the table above include the retirement benefit obligations

107

and plan assets of consolidated subsidiaries using simplified methods.
Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 2020108

Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

16. Asset Retirement Obligations 

Note:
1. The expiration of tax loss carryforwards, the related valuation allowance and the resulting net deferred tax assets

Omitted as the significance was negligible.

Fiscal year ended March 31, 2019
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

Total

17. Rental Property 

¥ 800

¥ 631

¥ 876

¥ 5,41381¥ 545¥ 8,349

Valuation allowance

(795)

(575)

(867)

(179)

(67)

(386)

(2,872)

Deferred tax assets

4

55

9

5,233

14

158

5,476*Tax loss carryforwards (*1)¥

Over five years

2*1. Tax loss carryforwards were calculated based on the statutory tax rate.
*2. Of the total tax loss carryforwards of 8,349 million yen, 5,476 million yen were deferred tax assets. This 5,476 million yen of deferred tax assets comprised
mainly 4,854 million yen of deferred tax assets of Hankyu Corporation, which is a member of the consolidated tax group to which the Company is theconsolidated parent corporation. The deferred tax assets were made when for tax purposes a valuation loss on properties 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 recoverablefrom taxable income we expect in the future.

Some consolidated subsidiaries own rental property, such as office buildings

Notes:

for lease and commercial facilities for lease in the Kita Ward of Osaka and1. Book value is acquisition cost less accumulated depreciation.

other areas. Rental profit and loss related to such rental property in the fiscal

2. F or increase/decrease during the fiscal year ended March 31, 2019, the main

year ended March 31, 2019 was 32,434 million yen (major rental revenues are

increase was acquisitions of real estate of 42,062 million yen, and the mainrecorded in revenues from operations and major rental expenses are recorded

decreases were sales of real estate of 13,437 million yen and depreciationin costs of revenues from operations). Income on sales of noncurrent assets wasof 12,450 million yen. For increase/decrease during the fiscal year ended

2,289 million yen (recorded as extraordinary profit). Rental profit and loss related

March 31, 2020, the main increases were the completion of buildings in

to such rental property in the fiscal year ended March 31, 2020 was 32,663

development of 13,940 million yen and acquisitions of real estate of 6,235

million yen (major rental revenues are recorded in revenues from operations andmajor rental expenses are recorded in costs of revenues from operations).
Book value recorded in the consolidated balance sheet, increase/decrease

Fiscal year ended March 31, 2020

during the fiscal year and market value for such rental property are as follows:

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¥  449¥  853¥  3,026¥    88¥    79¥  1,237¥  5,736

Valuation allowance

(443)

(848)

(181)

(77)

(45)

(950)

(2,546)

Deferred tax assets

5

5

2,845

11

34

287

3,189*2

Tax loss carryforwards (*1)

Thousands of U.S. dollars
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$  4,119$  7,826$  27,761$  807$    725$  11,349$  52,624

Valuation allowance(4,064)(7,780)(1,661)

(706)

(413)

(8,716)(23,358)

Deferred tax assets

46

46

26,101

101

312

2,633

29,257*²

Tax loss carryforwards (*1)

Millions of yen

Thousands of
U.S. dollars

2019

2020

2020

¥ 623,463¥ 639,657$ 5,868,413

Increase/decrease (Note 2)

16,193

6,265

57,477

Balance at end of the year

639,657

645,922

5,925,890

894,928

914,359

8,388,615

Book value (Note 1):Balance at beginningof the year

Fair value at endof the year (Note 3)

million yen, and the main decrease was depreciation of 12,838 million yen.
3. F air value as of the end of the fiscal year is the appraisal value according toan outside real estate appraiser based on Japanese Real Estate Appraisal
Standards in the case of key properties and the fair value based on indicatorssuch as the assessed value of noncurrent assets and road tax rating in thecase of other properties.
4. Properties under development are not included in the above table because
it is difficult to determine the market value under development. Furthermore,
properties under development recorded in the consolidated balance sheet for
the fiscal year ended March 31, 2019 and for the fiscal year ended March 31,
2020 were 156,605 million yen and 156,001 million yen, respectively.

*1. Tax loss carryforwards were calculated based on the statutory tax rate.
*2. Of the total tax loss carryforwards of 5,736 million yen, 3,189 million yen were deferred tax assets. This 3,189 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

18. Segment Information 

consolidated parent corporation. The deferred tax assets were made when for tax purposes a valuation loss on properties for sale was recorded at Hankyu

18.1 Segment information

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 recoverablefrom taxable income we expect in the future.

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 the

Note:
2. T
 he 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.

15.2	Reconciliation of the significant differences between the statutory tax rate and the effective tax rate reflected in the accompanying consolidated
statements of income

allocation 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., is running a business centering around the seven business areas of urban transportation,
real estate, entertainment, information and communication technology, travel, international transportation, and hotels, under the leadership of the Company in charge ofmanagement of the Group.
The nature of business in each reportable segment is as follows:
Urban Transportation: Railway operations, automobile, retailing and advertising businesses

2019

2020

30.6%

30.6%

Elimination of dividends received fromconsolidated subsidiary companies etc.

17.9

19.7

Difference of tax rates from Parent Company

2.4

2.2

International Transportation: International cargo services

Amortisation of goodwill

0.8

0.9

Hotels: Hotel ownership and management business

Per capita portion of inhabitant tax

0.5

0.4

Nondeductible expenses

0.4

0.4

Valuation allowance

2.0

0.4

Nontaxable income(17.8)(19.3)(12.2)

—

(1.7)

(1.2)

Statutory tax rate
(Adjustment)

Other
Effective tax rate

Hankyu Hanshin Holdings Integrated Report 2020

0.3

0.2

23.2

34.4

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

Financial Section and Corporate Data

Temporary difference related to investments in
subsidiaries
Profit or loss from investments with equity
method affiliates

109

18.1.1 Summary of reportable segments

Hankyu Hanshin Holdings Integrated Report 2020110

Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

18.1.2 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 the “Basis of Preparation of Consolidated Financial Statements,”
including Internal transactions (lease transactions of 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 data as those of general conditions for transaction.
18.1.3 Information regarding totals for revenues from operations, income (loss), assets and other items by reportable segment
Fiscal year ended March 31, 2019

18.1.4 Changes to reportable segments, etc.

Millions of yen
Reportable segment
Urban
Transportation

Real
Estate¥ 233,622¥ 219,828

II. Intersegment

4,939

17,447

Entertainment

Information andCommunication
Technology¥¥

TravelInternational
Transportation

35,518¥

Other(Note 1)

HotelsAmounts
appearing in
Adjustment the consolidated(Note 2)
financialstatements(Note 3)

Revenues from operations:
I. Customers

73,183

44,632¥Notes
1. The "Other" segment refers to a business segment not included in reportable segments, and includes construction business, etc.
2. The main item in the adjusted amount of the segment income or loss for the fiscal year was amortisation of goodwill of (2,238) million yen (amortisation of
goodwill mainly having originated from management integration with Hanshin Electric Railway Co., Ltd. in fiscal 2007).
In addition to the balance of unamortised goodwill of 13,987 million yen (amortisation of goodwill mainly having originated from 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 lands, 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 statement of income.

89,924¥63,707¥30,632¥377¥ 791,427
—

1,334

8,901

9

66

1,216

12,784(46,700)

From the fiscal year ended March 31, 2020 the six reportable segments (Urban Transportation, Real Estate, Entertainment and Communications, Travel,
International Transportation and Hotels) have been reorganized into the following seven segments: Urban Transportation, Real Estate, Entertainment, Information
and Communication Technology, Travel, International Transportation, and Hotels.
This reorganization will allow us to further strengthen our competitiveness in communications and media, which included the Entertainment and Communication
business segment. Information and Communication Technology is not merely a name change, but a new independent segment, while the segment previously
covered by Entertainment and Communication has been reorganized as the Entertainment business segment.
The segment information given here for the fiscal year ended March 31, 2019 corresponds to the post-reorganization segments.

Total

238,562

237,276

74,51853,53335,52889,99064,92343,417(46,322)

791,427

18.2

Segment income (loss)

43,45549,25013,439

5,279

1,764

2,392

1,214

2,333

(4,191)

114,937

Fiscal years ended March 31, 2019 and 2020

Segment assets

800,209

1,144,513

106,258

53,53791,60348,92584,071

37,52099,582

2,466,223

27,354

16,640

3,684

3,414

653

619

2,140

360

(696)

54,172

33,79162,448

2,637

5,307

831

678

1,961

1,452

5,259

114,368

Other items:
Depreciation andamortisationIncrease in property andequipment and intangible assets

Related information

18.2.1 Information by product and service
Information about product and service categories is the same as that described in Note 18.1.3, “Information regarding totals for revenues from operations, income(loss), assets and other items by reportable segment.”
18.2.2 Information by region

Notes
1. The "Other" segment refers to a business segment not included in reportable segments, and includes construction business, etc.
2. The main item in the adjusted amount of the segment income or loss for the fiscal year was amortisation of goodwill of (2,238) million yen (amortisation of
goodwill mainly having originated from management integration with Hanshin Electric Railway Co., Ltd. in fiscal 2007).
In addition to the balance of unamortised goodwill of 16,174 million yen (amortisation of goodwill mainly having originated from 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 lands, 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 statement of income.

I.

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.
18.2.3 Information about important customers

Fiscal year ended March 31, 2020

No single external customer accounts for more than 10% of the revenues from operations reported in the consolidated statements of income.
Millions of yen
Reportable segment

Urban
Transportation

Real
EstateEntertainment

Information andCommunication
Technology

International
Transportation

TravelOther(Note 1)

HotelsAmounts appearing
Adjustment in the consolidated(Note 2) financial statements(Note 3)18.3 Information regarding impairment loss on noncurrent assets for each reported segment
Fiscal year ended March 31, 2019
Millions of yen
Reportable segment

Revenues from operations:
I. Customers¥ 222,478¥ 216,805¥ 72,593¥ 49,904¥ 33,762¥ 76,104¥ 59,136¥ 31,472¥

393¥ 762,650

II. Intersegment

4,698

19,241

1,427

8,671

3

81

1,143

11,014(46,281)—

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

Other items:

Loss on impairment

Real
Estate¥ 19,227¥ —Entertainment

Information andCommunication
Technology

¥ —

¥ —

Travel¥ —International
Transportation¥ 15

Hotels¥ 20

OtherAmounts appearing
Adjustment in the consolidated
financial statements

¥ —

¥ —

¥ 19,262

Fiscal year ended March 31, 2020
Omitted as the significance was negligible.

18.4 Information regarding amortisation of goodwill and the balance of unamortised goodwill by reportable segment

Financial Section and Corporate Data

Depreciation andamortisationIncrease in property andequipment and intangible assets

Urban
Transportation

Omitted as the significance was negligible.

Thousands of U.S. dollars
Reportable segment
Urban
Transportation

Real
EstateEntertainment

Information andCommunication
Technology$$

TravelInternational
Transportation

309,743$

Other(Note 1)

HotelsAmounts appearing
Adjustment in the consolidated(Note 2) financial statements(Note 3)18.5 Information regarding gains from negative goodwill by reportable segment
Omitted as the significance was negligible.

Revenues from operations:$ 2,041,083$ 1,989,037

II. Intersegment

43,101

176,523

13,092

79,55028

743

10,486

101,046（424,596）

—

Total

2,084,183

2,165,560

679,083

537,394309,780

698,954553,028

389,780（420,982）

6,996,789

I. Customers

Segment income (loss)
Segment assets

665,991

457,835$

698,202$542,532$

288,734$

3,606$ 6,996,789

367,486

380,826

107,294

51,358

2,128

1,560

（28,826）

21,844（30,569）

873,119

7,488,028

10,808,807

987,229

510,624

433,817444,303807,615

348,991

1,006,165

22,835,606

253,404

157,339

34,41334,422

6,982

12,01822,963

3,495（6,339）518,734

302,092

295,523

38,174

44,633

11,413

10,19344,165

1,817（4,092）743,945

Other items:
Depreciation andamortisationIncrease in property andequipment and intangible assets

111

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 2020112

Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

19. Related-Party Transactions 

20. Per Share Information 

19.1 Related-party transactions

Net assets per share, net income per share and diluted net income per share for the fiscal year, and the basis for their respective calculations are as shown below.

19.1.1 Transactions between the company submitting the consolidated financial statements and related parties
No items(1) Net assets per share (Yen / U.S. dollars)
19.1.2.1 Non-consolidated subsidiary or related company of the company that submitted the financial statements.
Fiscal year ended March 31, 2019

Type

Subsidiaryof Related
Company

Name ofCompany, etc.

Address

Hankyu Hanshin
Kita-ku, Osaka
Department
City
Stores, Inc.

¥ 200

Votinginterest

Business

Department
store business

None

Relationshipwith related
party

Lease of realestateTransaction
amounts

Details oftransaction

acceptanceofdeposits

Balance asof March 31,
2019

Item

(Millionsof yen)¥ 3,294(Millionsof yen)Deposit¥27,099

Fiscal year ended March 31, 2020

Type

Name ofCompany,
etc.

Subsidiaryof Related
Company

HankyuHanshin
Department
Stores, Inc.

Amountof capital(Millions of yen)

Address

Kita-ku,
Osaka City

¥ 200

Business

Votinginterest

Department
store
business

None

Transaction
amounts

Relationship
Details ofwith relatedtransaction
party(Millions (Thousands of
U.S. dollars)of yen)Lease of realestateacceptanceofdeposits

Balance as of March
31, 2020

Item

2020
¥  3,738.56

2020$        34.30(Basis for the calculation)

19.1.2 Transactions between consolidated subsidiaries of the company submitting the consolidated financial statements and related parties

Amount ofcapital (Millionsof yen)2019¥ 3,615.52(Millionsof yen)(Thousands of
U.S. dollars)

Total net assets (Millions of yen / Thousands of U.S. dollars)¥ 915,381¥  937,672$ 8,602,495

Amount to be deducted from total net assets(Millions of yen / Thousands of U.S. dollars)¥

30,517¥    32,025$    293,807(Of the amount, non-controlling interests)¥ [30,517]¥   [32,025]$   [293,807]

Net assets at the end of the fiscal year related to common shares(Millions of yen / Thousands of U.S. dollars)¥ 884,863¥  905,647$ 8,308,688

Common shares issued (Thousands of shares)

254,281254,281

Treasury stock shares (Thousands of shares)

8,381

10,877Common shares held by consolidated subsidiaries and equity-method affiliates(Thousands of shares)

1,159

1,159

Common shares used to calculate net assets per share (Thousands of shares)

244,740

242,245¥ 266.86¥   225.69$       2.07

¥ 65,476¥  54,859$ 503,294

¥ —

¥  —

$  —

¥ 65,476¥  54,859$ 503,294

245,353

243,077¥ 266.86¥  —(2) Net income per share (Yen / U.S. dollars)(Basis for the calculation)Net income 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)Net income attributable to owners of the parent related to common shares(Millions of yen / Thousands of U.S. dollars)
Average number of common shares during term (Thousands of shares)(3) Net income per share—diluted (Yen / U.S. dollars)$  —(Basis for the calculation)——

Deposit¥27,099$248,615

Notes:
1. The transaction amount and the balance as of the end of the fiscal year do not include any consumption tax.
2. The terms and conditions for transaction and policies for determining terms and conditions for transaction
Terms and conditions for deposits are determined in the same way as general transactions.

Adjustment to net income attributable to owners of the parent(Millions of yen / Thousands of U.S. dollars)

¥ (0)

¥  —

$  —

(Equity in income of affiliates)¥ [(0)]¥  [—]$ [—]Increase in number of common shares (Thousands of shares)——Summary of potential shares that were not included in the calculation of diluted
income per share because their effect was not dilutive

—

—

—

Notes:
1. In calculating net assets per share, the number of the shares in the Company owned by the officer’s compensation BIP trust are included in that of treasury stock

19.1.2.2 Directors and principal shareholders (only individual shareholders) of the company submitting the consolidated financial statements

shares to be excluded from the total number of outstanding shares at the end of the fiscal year. Furthermore, in calculating net income per share and diluted
net income per share for the current fiscal year, the number of the shares in the Company owned by the officer’s compensation BIP trust are included in that of

Fiscal year ended March 31, 2019
TypeAudit &Supervisory
Board
MemberName ofrelated party

Address

Haruo
Sakaguchi

Amount ofcapital(Millions of yen)

Business

Votinginterest

Relationshipwith related
party

Details oftransaction¥ —Auditorof theCompany

Directly
0.0%

Lease of realestateLease ofreal estateBusiness

Votinginterest

Relationshipwith related
party

Details oftransaction—

Transaction
amounts(Millions of yen)

Item

Balance as ofMarch 31, 2019
(Millions of yen)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 sharesdeducted in calculating net assets per share and diluted net income per share for the fiscal year ended March 31, 2019 was 377,008, and for the fiscal year
ended March 31, 2020 is 367,308, and the average number of treasury stock shares deducted in calculating net income per share and diluted net income pershare for the fiscal year ended March 31, 2019, was 375,143, and for the fiscal year ended March 31, 2020, is 371,785.

¥ 53

Deposit¥ 40

2. As there are no dilutive shares with a dilutive effect, diluted net income per share for the fiscal year ended March 31, 2020 has been omitted.

Fiscal year ended March 31, 2020

Type

Directorof Major
Subsidiary

Haruo
Sakaguchi

TomiyukiMatsudaAmount of capital
Address(Millions (Thousands of
U.S. dollars)of yen)

—

—

¥  —

—

Balance as ofMarch 31, 2020

Transaction
amounts
Item(Millions (Thousands of
U.S. dollars)of yen)$  —

Auditorof theCompany

Directly
0.0%

Lease of realestateLease ofreal estate

¥  53

—

Director
at Hankyu
Hanshin
Properties
Corp.

Directly
0.0%

Contract forrenovation
work

Renovation
work

10

$  486(Millions (Thousands ofof yen) U.S. dollars)

Deposit¥  40 $  367

21. Subsequent Events 
21.1 Acquisition of treasury stock
Pursuant to Article 156 of the Companies Act of Japan as applied mutatis mutandis under Article 165, paragraph 3 of the same act, a meeting of the Board of
Directors convened on May 14, 2020 decided the following items in relation to the acquisition of treasury stock.
21.1.1 Reason for acquisition of treasury stock

Financial Section and Corporate DataAudit &Supervisory
Board
MemberName ofrelatedparty

To enhance shareholder returns and enhance capital efficiency

Notes

92

—

—

—

21.1.2 Details of items related to acquisition(1) Type of shares acquired: Shares of common stock of the Company(2)	Total number of shares available for acquisition: 1,500,000 shares (upper limit)
(0.62% of total number of outstanding shares (excluding treasury stock))

1. The transaction amount and the balance as of the end of the fiscal year do not include any consumption tax.

(3) Total amount of acquisition: 4,300,000,000 yen (upper limit)

2. Terms and conditions for transaction, and policies for determining terms and conditions for transaction(4) Period of acquisition: From May 20, 2020 to March 31, 2021

Terms and conditions for lease and for sales are determined by referencing to similar transaction cases in the neighboring area.
Renovation work is decided rationally, based on negotiations that consider real market value.

19.2 Notes about parent company and major affiliated companies
No items

113

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 2020114

Financial Section and Corporate Data
Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

22.3 Schedule of asset retirement obligations

22. Consolidated Supplementary Statements Omitted as the significance was negligible.

22.1 Corporate bond statements

Issue date

Balance asof April 1,
2019

Balance asof March 31,
2020

Thousands of
U.S. dollars
Balance asof March 31,
2020

Oct 23, 2009

¥10,000¥          —Sep 22, 2010

15,00015,000(15,000)

Sep 22, 2010

7,000

Mar 17, 2011

Millions of yen
Company

Name

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.

Series 38 unsecured
corporate bonds
Series 40 unsecured
corporate bonds
Series 41 unsecured
corporate bonds
Series 42 unsecured
corporate bonds
Series 45 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

TotalInterest rate

Security

Redemption date$           —

1.87%

None

Oct 23, 2019

137,615(137,615)

1.43

None

Sep 18, 2020

7,000

64,2201.72

None

Sep 22, 2022

10,00010,000(10,000)

91,743(91,743)

1.54

None

Mar 17, 2021

Mar 14, 2013

10,000

—

—

0.589

None

Mar 13, 2020

Oct 25, 2013

10,00010,00091,743

0.819

None

Oct 25, 2023

Jul 18, 2014

10,00010,00091,743

1.202

None

Jul 18, 2029

Dec 15, 2016

10,00010,00091,743

0.120

None

Dec 15, 2021

Dec 15, 2016

10,00010,00091,743

0.817

None

Dec 15, 2036

Sep 13, 2018

10,00010,00091,743

0.345

None

Sep 13, 2028

Sep 13, 2018

10,00010,00091,743

0.789

None

Sep 13, 2038

Nov 21, 2019—10,00091,743

0.215

None

Nov 21, 2029

Nov 21, 2019—10,00091,743

0.878

None

Nov 19, 2049

Feb 27, 2020—

10,00091,743

0.486

None

Feb 27, 2040

112,000

122,000(25,000)

1,119,266(229,358)

—

—

—

—

—

23. Others Quarterly financial information in fiscal year ended March 31, 2020
1st Quarter

2nd Quarter

3rd Quarter

4th Quarter¥ 187,161¥ 410,733¥ 583,678¥ 762,650

Income before income taxes (Millions of yen)

32,202

71,95089,88586,746

Net income attributable to owners of the parent (Millions of yen)

21,39547,63058,96854,859Net income per share for quarter (of the fiscal year ended March 31, 2020) (yen)87.50

195.38242.34225.69Cumulative period
Revenues from operations (Millions of yen)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter$ 1,717,073$ 3,768,193$ 5,354,844$ 6,996,789

Income before income taxes (Thousands of U.S. dollars)

295,431660,092

824,633

795,835

Net income attributable to owners of the parent (Thousands of U.S. dollars)

196,284

436,972

540,991

503,294

0.80

1.79

2.22

2.07

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter¥ 87.50¥ 107.92¥ 46.80¥ (16.96)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter$ 0.80$ 0.99$ 0.43$ (0.16)

Cumulative period
Revenues from operations (Thousands of U.S. dollars)

Net income per share for quarter (of the fiscal year ended March 31, 2020) (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)

Notes:
1. The figures in parenthesis for the balance as of March 31, 2020 are the amount payable within one year of the total outstanding, and are listed as current
liabilities under the consolidated balance sheet.
2. The amount of bonds scheduled to be redeemed within five years subsequent to March 31, 2020 are as follows.

Millions of yen

Thousands of
U.S. dollars¥ 25,000$  229,358

Due within one year
Due after one year through two years

10,00091,743Due after two years through three years

7,000

64,220Due after three years through four years

10,00091,743——Due after four years through five years

22.2 Statements of loans payable

Balance as ofApril 1, 2019

Balance as ofMarch 31, 2020

Thousands of
U.S. dollars
Balance as ofMarch 31, 2020

¥ 102,670¥  123,710$  1,134,954

34,36534,696318,312

Millions of yen
Item
Short-term borrowings
Current portion of long-term debt
Current portion of lease obligations

Average interest

Repayment deadline rate

0.416%

—

1.349

—

2,404

22,055—

621,375

615,058

5,642,734

0.832

2021 – 2040—

Lease obligations (excluding current portion)

5,076

5,609

51,459—2021 – 2028

Other interest-bearing debt

—

—

—

—

—

Total

765,055

781,480

7,169,541——

Notes:
1. The balances refer to those after the elimination of transactions between
companies in the consolidation 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, 2020.
3. For lease obligations, “average interest rate” is not shown because theCompany mainly uses the method that includes the amount of interest
in total lease obligations and that spreads the total amount of interest
equally over each fiscal year of the lease period.
4. Repayment schedule of long-term debts and lease obligations (excluding
those scheduled to be repaid within one year) within five years subsequent
to March 31, 2020 are as follows.

115

Hankyu Hanshin Holdings Integrated Report 2020

Millions of yen

Thousands of
U.S. dollars

Due after one year through two years¥  44,971$  412,578

Due after two years through three years

53,877494,284

Due after three years through four years

90,036

826,018

Due after four years through five years

75,670694,220

Millions of yen

Thousands of
U.S. dollars

Due after one year through two years¥  2,051$  18,817

Due after two years through three years

1,573

14,431

Due after three years through four years

1,160

10,642

Due after four years through five years

618

5,670

Long-term debt

Lease obligations

Financial Section and Corporate Data

1,567

Long-term debt (excluding current portion)

Hankyu Hanshin Holdings Integrated Report 2020

116

Financial Section and Corporate Data

Major Group Companies

Company Overview and Investor Information■ Consolidated Subsidiaries (As of September 30, 2020)

Hankyu Hanshin Holdings, Inc. (As of March 31, 2020)■ Urban Transportation■ Entertainment

Name of company

Railway operations

Hankyu Corporation

Hanshin Tigers Baseball Club, Ltd.
Hanshin Contents Link Corporation
Takarazuka Creative Arts Co., Ltd.
Umeda Arts Theater Co., Ltd.

Hankyu Corporation
Eki Retail Service Hankyu Hanshin Co., Ltd.
Hankyu Style Labels Co., Ltd.
Alna Sharyo Co., Ltd.

Name of company

Information andCommunication
Technology■ Travel¥99,474 million

Fiscal Year-End

March 31

Number of Employees

22,800 (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.)

Number of Shareholders 76,471

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

Itec Hankyu Hanshin Co., Ltd.
Bay Communications Inc.
Ownership Breakdown

Principal Shareholders
Percentage(%)

The Master Trust Bank of Japan, Ltd. (Trust account)

15,230

6.25

Japan Trustee Services Bank, Ltd. (Trust account)

12,130

4.98■ International Transportation

Nippon Life Insurance Company(Standing Proxy: The Master Trust Bank of Japan, Ltd.)

5,224

2.14

Hankyu Corporation

International

Hankyu Hanshin Express Co., Ltd.

Japan Trustee Services Bank, Ltd. (Trust account 5)

5,142

2.11

Hanshin Electric Railway Co., Ltd.

transportation

Hankyu Hanshin Logipartners Co., Ltd.

H2O RETAILING CORPORATION

4,207

1.73

STATE STREET BANK WEST CLIENT–TREATY 505234 (Standing Proxy:
Mizuho Bank, Ltd. Settlement & Clearing Services Division)

3,985

1.63

Japan Trustee Services Bank, Ltd. (Trust account 7)

3,911

1.60

JP MORGAN CHASE BANK 385151 Mizuho Bank, Ltd.
Settlement & Clearing Services Division)

3,836

1.57

Sumitomo Mitsui Banking Corporation

3,581

1.47

GOVERNMENT OF NORWAY

3,172

1.30

Hanshin Station Net Co., Ltd.

Real estate sales andother business■ Information and Communication Technology

Paid-in Capital

1-16-1, Shibata, Kita-ku, Osaka 530-0012, Japan

Number of shares(Thousands)

Hankyu Sekkei Consultant

Real estate leasing

Hankyu Corporation

Hankyu Bus Co., Ltd.

Hanshin Taxi Co., Ltd.

■ Real Estate

Stage

Kobe Rapid Transit Railway Co., Ltd.

Hankyu Taxi Inc.

Other

Hanshin Electric Railway Co., Ltd.

Nose Electric Railway Co., Ltd.

Hanshin Bus Co., Ltd.

Retailing

SportsHanshin Electric Railway Co., Ltd.
Kita-Osaka Kyuko Railway Co., Ltd.
Automobile

Name of company

Head Office

Name of company

Travel agency

Hankyu Travel International Co., Ltd.
Hankyu Travel Support Co., Ltd.

Name of company

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

Name of company

Name of company

National government and local
public organizations

0.00%

Financial
institutions

28.20%

Individuals
and others

41.96%

Securities
companies

0.71%

Other
corporations

Foreigncorporations
and individuals

8.52%

20.61%

Hankyu Hanshin Hotels Co., Ltd.
Hanshin Hotel Systems Co., Ltd.
Arima View Hotel Co., Ltd.

■ Other
Construction

Stock Price and Annual Trading Volume (Tokyo Stock Exchange)
Name of company

Hanshin Kensetsu Co., Ltd.
Chuo Densetsu Co., Ltd.

Advertisinghankyu 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

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

117

5,000

Stock Price

Trading volume(Thousand shares)

Trading volume (right axis)

200,000

4,000

160,000

3,000

120,000

2,000

80,0001,000

40,000

0

Financial Section and Corporate Data

■ Equity-Method Affiliates (As of September 30, 2020)

Hankyu Hanshin Financial Support Co., Ltd.

Stock price (¥)

0

2012

2013

2014

2015

2016

2017

2018

2019

2020 (FY)

Notes:
1. The stock prices are as of March 31, of each year. The trading volumes are for years ended 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.

TOHO CO., LTD. (Securities code: 9602)
TOKYO RAKUTENCHI CO., LTD.
(Securities code: 8842)
Kansai Television Co., Ltd.

Hankyu Hanshin Holdings Integrated Report 2020

Hankyu Hanshin Holdings Integrated Report 2020

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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

Printed in Japan