Hankyu Hanshin Holdings Group
Results Briefing Materials for
Financial Results for Fiscal 2023
(Ended March 2023)
May 23, 2023
Hankyu Hanshin Holdings, Inc.
9042 https://www.hankyu-hanshin.co.jp/en/

Contents
Ⅰ. Executive Summary･･･

2

Ⅱ. Performance Highlights for Fiscal 2023
(Ending March 2023)･･･

8

Ⅲ. Summary of the Medium-Term Management Plan･･･ 31

Ⅳ. Forecasts for Fiscal 2024 (Ending March 2024)･･･ 54

Separate Document: Reference Data
(1) Progress in Each Project(2) Sustainable Management(3) Other
The information is also available on our corporate website:

https://www.hankyu-hanshin.co.jp/en/ir/library/presentations/

Business forecasts and other projections herein are based on information available at present and logical assessments and do not
represent any promise by the Company. The actual results may differ significantly from these projections due to various factors.

1

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2023
(Ending March 2023)
Ⅲ. Summary of the Medium-Term Management
Plan
Ⅳ. Forecasts for Fiscal 2024 (Ending March 2024)

2

Executive Summary ①■FY2023 performance (comparison with FY2022)
Revenue and profit grew. Although the Covid impact persisted, most segments experienced
recovery to some extent. Additionally, the Travel segment experienced a surge in orders, with many
requests from local authorities to provide services to Covid patients recuperating at home.
＜Operating revenue＞（￥ billion）

1,500
1,000

+ 222.1

746.2+ 222.1＜Operating profit＞＜Bumper businesses＞
・Services for local governments related to Covid in Travel segment
・Supply crunch in International Transportation segment（￥ billion）

100
80
60

Approx.
20.0+ 50.1Other/
Adjustment

International
Transportation

FY2022
Results

Information andCommunication
Technology

FY2023Results

Entertainment

FY2023
Forecasts(As ofFeb.)

FY2023Results

Real
Estate0

FY2022
Results（￥ billion）

Urban
Transportation

20

39.2

85.0

89.4

Travel40+ 50.1Other/
Adjustment

0International
Transportation

FY2022
Results

TravelFY2023Results

Information andCommunication
Technology

FY2023
Forecasts(As ofFeb.)

FY2023Results

Entertainment

968.3

Real
EstateFY2022
Results

975.0

Urban
Transportation500（￥ billion）

3

Progress in Medium-Term Plan: Profit Level
In FY2023, profit, at ¥63.0 billion, was largely in line with our initial target (announced in May 2022) if
we discount the response to one-off demand spike in the Travel and International Transportation
segments.

(￥ billion)

120

100

FY2031￥130.0 bn

Baseline profit level￥100.0 bn

89.4

95.2

80

Impact of
COVID-19
Approx.-¥100.0
bn

60

40

20

39.2

Initial target(announced May
2022)￥63.0bn

Discounting bumper
business in Traveland Int Transp segs

Results

Generally in line withtarget2.1

0
Envisaged phased
recovery from
Covid

with something
extra

2019

2020

2021

Pre-Covid

In Japan, short-distance travel resumes. Travel
distances gradually increase, and the impact ofphysical distancing eases off.
See p. 35 for more details.

2022
Phase 12023

2024
Phase 2

Travel gradually
resumes across theworld.

2025

2026

…

2031

（FY）

Phase 3
新型コロナウイルスの影響が一応収束し、国内外のCovid
impact abates. Economic activity returns
mostlyto normal in and outside Japan. However,
経済活動が相当程度回復するが、コロナ前の状態に
there
is no full return to pre-pandemic times.
完全に復するわけではない。

4Rolling Plan for Medium-Term Plan (FY2023–FY2026)■Extra ¥70.0 billion in growth investment (for FY2023–FY2026 period)

See p. 37 for more details.

To improve our prospects of achieving the profit goal set out in our long-term vision (¥130.0 bn + extra in
FY2031), we will increase investment in condominium sales and also in overseas real-estate, in which weare building a track record and in which we identify bright growth prospects.

Previous budget (announced May 2022)

Latest budget

Total CapEx (and lending)

Total CapEx (and lending)

630.0

560.0

Strategic investment
framework

30.0

Growth investment

290.0(investment in maintenanceand renewal of existing
infrastructure)

240.0

Strategic investment
framework

30.0

Growth investment

360.0(includes investment in for-sale property and equity)(includes investment in for-sale property and equity)

Maintenance CapEx

Extra
70.0

Maintenance CapEx(investment in maintenanceand renewal of existing
infrastructure)■Decision to use business profit as profit indicator（￥billion）

240.0

See p.40 for more details.

We decided to start using business profit (Operating profit + Equity-method gains/losses related to overseas
business investment) as a profit indicator.
This allows us to report our business progress accurately.

Business profit = Operating profit + Equity-method gains/losses related to overseas real-estate (which is non-operating profit)

The FY2026 profit target set out in the medium-term plan is now ¥118.0 billion in business profit(whereas before it was ¥115.0 bn in operating profit)

5

Executive Summary ②■FY2024 forecasts
Revenue growth is forecasted on the basis that the Real Estate segment will gain higher condominium sale income
and that the Urban Transportation segment will see some recovery in ridership. Flat profit growth is forecasted on
the basis that the Travel and International Transportation segments will experience a drop in profit relative to the
bumper profit they enjoyed in FY2023.

＜ Operating revenue ＞（¥ billion）

1,050
1,000

＋31.7

2021年度
2Q累計

968.3

2022年度

1,000.0
2Q累計+0.6（¥ billion）

100
80
60

International
Transportation

TravelInformation andCommunication
Technology

FY2023Results

Entertainment

0

FY2023Results

FY2024
Forecasts+ 31.7

10月
発表
予想

Real
Estate20

Approx.
+20.0 inreal-terms

Approx.
20.0

Bumper business in Traveland Int Transp segs

FY2024
Forecasts（¥ billion）

Urban
Transportation

40

90.0

89.4
2021年度
2Q累計

2022年度
2Q累計

International
Transportation＜Business profit＞

Travel900

Information andCommunication
Technology

FY2023Results

Entertainment

FY2023Results

Real
EstateFY2024
Forecasts

Urban
Transportation

950（¥ billion）＋ 0.6

FY2024
Forecasts■Shareholder returns (allocations of surplus profits generated in FY2023 and FY2024)

See p. 58 for more details.

・ FY2023 surplus allocation : We will pay a dividend of ¥50 per share. Shares will be repurchased with a cap of ¥2.0 billion.
・ FY2024 surplus allocation (planned): We will pay a dividend of ¥50 per share. Shares will be repurchased.
6

Progress in Long-Term Vision and Medium-Term Plan
■Progress in key projects

See pp. 47–53 for progress in other projects.

Strategy 1: Make our line-side communities the absolute best among the Kansai networks

Shibata 1 Project

Umekita Phase II Development Project(Grand Green Osaka)• Work is on schedule for partial opening in summer of2024.
• In FY2025 H2, Hankyu Hanshin Hotels will open a hotel
here under the upscale brand Gran Respire.

• In October 2022, we launched the Osaka-Umeda 2030
Project Team to coordinate groupwide action on the
Shibata 1 Project.
• We will flesh out the plans and accelerate negotiations
with stakeholders (e.g. governmental authorities) so
we can make a start as soon as possible.
Osaka-Umeda 2030 Project Team’s
subcommittees
Construction
andEngineering

StationVicinity

StationAmenities

Software andContent

CommunityBuilding andPR

Strategy 3: Expand the coverage of our line-side business model

Expand Real Estate segment overseas• We acquired Central Park
Mall, a leading megamall
in West Jakarta,
Indonesia.

Short-term-returns business• We previously acquired anddeveloped four properties in HCUBE, a low-rise, street-facing
commercial facility. We sold threeof them to Hankyu Hanshin REIT
Asset Management.
(In FY2023, we sold two properties
to Hankyu Hanshin REIT AssetManagement).

7

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2023
(Ending March 2023)
Ⅲ. Summary of the Medium-Term Management
Plan
Ⅳ. Forecasts for Fiscal 2024 (Ending March 2024)8

Consolidated Statements of Income(Summary)
FY2023Results

Consolidated Subsidiaries
Equity-Method Affiliates
Total

99 companies
10 companies
109 companies

FY2022
Results

Change98 companies +1 (2 companies increase, 1 company decrease)
11 companies -1 (1 company decrease)109 companies －(¥ million)

FY2023Results

FY2022
Results

Operating revenue

968,300

746,217 +222,083 （ ＋29.8% ） For details,

Operating profit

89,35039,212 +50,138 （ ＋127.9% ）ChangeRemarks

please see next page

Non-operating income

12,145

10,885+1,259Equity in income of affiliates +1,157

Non-operating expenses

13,063

11,648+1,415

Loss on disposal of property and equipment＋750

88,432

Ordinary profit

38,450 +49,982 （ ＋130.0% ）Extraordinary income

7,927

42,969-35,041

Gain on contributions for construction-25,709

Extraordinary losses

21,34842,827-21,478

Loss on reduction of property and equipment-23,315
Loss on impairment of fixed assets ＋12,040

Profit attributable to ownersof parent

46,952
FY2023Results（Reference）

21,418 +25,534 （ ＋119.2% ）FY2022
Results

ChangeDepreciation and amortization

62,037

59,107+2,929Financial balance ① - ②-7,495-7,408-87

Interest and dividend income①

1,272

1,108

+164

Interest expense②

8,768

8,516

+251

9

Consolidated Statements of Income (Breakdown for each business segment)[Key results in period under review]
Revenue and profit grew. Although the COVID impact persisted, most segments experienced recovery
to some extent. Additionally, the Travel business segment experienced a surge in orders, with many
requests from local authorities to provide services to Covid patients recuperating at home.
Operating revenue(¥ million)

Operating profit

FY2023Results

FY2022
Results

ChangeFY2023Results

FY2022
Results

Urban Transportation

185,581

161,623+23,958

22,435

5,629+16,805

Real Estate

282,049

246,584+35,465

27,851

19,425+8,426Entertainment

72,28962,864+9,425

12,622

9,263+3,358

Information and Communication
Technology

60,35559,181+1,174

5,917

5,867

+50

Travel191,400

60,419+130,980

15,257-5,748+21,006

International
Transportation

163,269

143,296+19,973

8,381

8,019

+361

Other

55,64951,666+3,983

2,752

2,385

+366

Adjustment-42,295-39,417-2,877-5,866-5,628

-237

Total

968,300

746,217+222,083

89,35039,212+50,138

Change（Note）In Q1 FY2023, we consolidated the Hotels segment into the Real Estate segment, making Hotels a sub-segment of Real Estate. This change
brings the number of reportable segments down from seven to six: Urban Transportation, Real Estate, Entertainment, Information andCommunication Technology, Travel, and International Transportation. To enable year-on-year comparisons, we have applied this change
retroactively to the comparative period (FY2022).

10

Urban Transportation Results
Revenue and profit grew. The segment continued feeling the pandemic impact. It also had to contend
with higher power costs amid soaring energy prices. However, the railway and automobile businesses
experienced a recovery in ridership to some extent.

（\ million）

FY2023Results

FY2022
Results

Change％Operating revenue

185,581

161,623+23,958＋14.8%

Operating profit

22,435

5,629+16,805＋298.5%[Breakdown by type of business]（\ billion）

Operating revenue
FY2023Results

FY2022
Results

Operating profit

Y on YFY2023Results

FY2022
Results

Y on Y

Railway

134.5

118.5

+15.9

26.5

14.7

+11.8

Automobile

40.2

34.1

+6.1

0.7

-4.2

+4.9

Retailing

12.0

10.9

+1.0

1.0

0.8

+0.2

Others

8.9

8.7

+0.2

0.6

0.7

-0.1

*Not including head office expenses /adjustments.

11

[Urban Transportation] Railway Performance Results
Hankyu Corporation
Fare revenues (¥ million)*
FY2023Results

FY2022
Results

Passenger volumes (Thousands)*

ChangeFY2023Results

FY2022
Results

ChangeCommuter pass

29,90028,654+1,245(＋4.3%)

299,570

282,633 +16,937(＋6.0%)

Workers

25,93525,223+712(＋2.8%)

210,671

204,916(＋2.8%)

Students

3,965

3,431

+533 (＋15.5%)

88,89877,717 +11,181 (＋14.4%)

Other tickets

54,90845,422+9,486 (＋20.9%)

272,065

228,028 +44,037 (＋19.3%)

Total

84,80974,077 +10,732 (＋14.5%)

571,636

510,661 +60,974 (＋11.9%)+5,755

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2023Results

FY2022
Results

Passenger volumes (Thousands)*

ChangeFY2023Results

FY2022
Results

ChangeCommuter pass

11,096

10,628+467(＋4.4%)

114,974

110,096+4,878(＋4.4%)

Workers

9,996

9,668

+328

(＋3.4%)

91,956

89,400+2,556(＋2.9%)

Students

1,099

960

+139 (＋14.5%)

23,017

20,695+2,322 (＋11.2%)

Other tickets

19,365

15,397+3,967 (＋25.8%)

103,696

84,103 +19,593 (＋23.3%)

Total

30,462

26,026+4,435 (＋17.0%)

218,671

194,199 +24,472 (＋12.6%)＊ 1) Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
2) For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
3) Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway

12[Urban Transportation] Referential Information《Hankyu Corporation》
Transportation revenue (tier 1 + tier 2)《Hanshin Electric Railway》
Transportation revenue (tier 1 + tier 2)(¥ million)
Totals for commuter passes
and other tickets

Ｑ1

Ｑ2

Q3

Q4

Total

FY2023 Results

21,22020,271

21,863

21,45484,809FY2022 Results

17,077

17,91920,643

18,436

Change+4,142+2,351+1,219

(%)

+24.3

+13.1

+5.9

Factors of YoY Change (estimated)
・COVID-19 impact (YoY change in impact)(¥ million)
Totals for commuter passes
and other tickets

Ｑ1

Ｑ2

Q3

Q4

Total

FY2023 Results

7,597

7,598

7,561

7,704

30,462

74,077

FY2022 Results

6,001

6,418

7,097

6,509

26,026+3,018+10,732

Change+1,595+1,180+464+1,195+4,435

+16.4

+14.5

(%)

+26.6

+18.4

+6.5

+18.4

+17.0

+¥10,556million

Factors of YoY Change (estimated)
・COVID-19 impact (YoY change in impact)+¥4,302million

Transportation Revenue (compared to same period of fiscal 2019 ）
0.0

0.0

-20.0

-20.0

-40.0

-40.0

FY2020

Dec.
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.

-80.0

Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.

Other tickets

FY2021

FY2022

FY2023

Commuter pass

-60.0

Other tickets
-80.0

Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.

Commuter pass

-60.0

《Hanshin Electric Railway》（％）

FY2020

Dec.
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.

《Hankyu Corporation》（％）

FY2021

FY2022

FY202313

[Urban Transportation] Referential Information
Hankyu Line: Transportation revenue (tier 1 + tier 2)
Commuter passes
Other tickets
Total

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
30,391
31,29931,54932,272
32,62833,19833,456
34,119 28,093
28,65429,90060,74961,63060,91062,92062,72063,13763,05961,887 40,982
45,422
54,90891,141
92,92992,45995,192
95,34896,33596,51696,007 69,075
74,07784,809

120%
110%
100%
90%

(¥ million)

100%

102%

101%

104%

105%

106%

106%

105%
93%

FY2013＝100%
76%

80%

81%

70%

(FY)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Hanshin Line: Transportation revenue (tier 1 + tier 2)
Commuter passes
Other tickets
Total

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

10,74019,66930,41011,00820,26031,269

11,107
20,286
31,394

11,372
21,03532,407

11,563
21,13632,699

11,797
21,63833,436

12,02422,03034,054

12,327
21,66533,993

10,476
13,72524,202

10,62815,39726,026

11,096
19,36530,462

120%
110%
100%
90%

100%

103%

103%

107%

108%

110%

112%

112%
100%

FY2013＝100%

80%

86%

80%
70%

(FY)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

14

Real Estate Results
Revenue and profit grew. The hotel business continued feeling the effects of the pandemic. However, the hotelbusiness experienced some recovery in user numbers for its accommodation and food/beverage services, while thereal estate leasing business experienced some recovery in rental income from commercial facilities served by our raillines.

（\ million）

FY2023Results

FY2022
Results

Change％Operating revenue

282,049

246,584+35,465＋14.4%

Operating profit

27,851

19,425+8,426＋43.4%[Breakdown by type of business]（\ billion）

Operating revenue
FY2023Results

FY2022
Results

Operating profit

Y on YFY2023Results

FY2022
Results

Y on Y

Real estate leasing

126.2

112.5

+13.8

32.4

30.1

+2.3

Real estate sales
and others

140.7

135.5

+5.2

10.2

11.4

-1.2

Hotel

44.2

25.6

+18.6

-4.8

-13.2

+8.3

*Not including head office expenses /adjustments.

15

[Real Estate] Referential Information
Leasable area（at the end of fiscal year ）［1,000㎡］［1,000㎡］
2,400

Leasable area（Left axis）

2,230

Osaka Umeda area only（Right axis）

2,200

1,800

1,700

1,600

760

(FY)

940

Completion of Osaka Umeda
Twin Towers South PhaseⅡ

Start of work on PhaseⅠ
of Osaka Umeda Twin Towers South

2014

2015

【Osaka Umeda Twin Towers North】(Former name: Umeda Hankyu Building)

2016

2017

2018

【GRAND FRONT OSAKA】

2019

2020

2021

2022

800
700

Completion of Osaka Umeda Twin Towers South PhaseⅠ,
start of work on PhaseⅡ,
Partial sale of stake of GRAND FRONT OSAKA

Completion of
Osaka Umeda Twin Towers North Phase Ⅱ
2013

1,000
900

1,400
1,200

1,100

Acquired Lalaport Koshien(site)

Completion of
GRAND FRONT OSAKA

2,000

1,200

600
2023

【Osaka Umeda Twin Towers South】（Complete construction in February 2022）

16

[Real Estate] Referential Information【Performance Highlights of Hankyu Hanshin Hotels for FY2023】◆Occupancy rates（YoY*）
Total◆Average daily rates (ADR) （YoY*）

73.3％（+28.2P）

Kansai area

73.1％（+26.3P）

Tokyo
Metropolitan area

73.9％（+33.0P）

Total¥12,176（+¥3,754）

Kansai area

¥11,912（+¥3,554）

Tokyo
Metropolitan area

¥12,782（+¥3,814）* The data omits the COVID-related temporary closures of some hotels.

《Hankyu Hanshin Hotels》 Occupancy rates（from January 2020）
100
80
60
40
Tokyo Metropolitan area

20

Kansai area

FY2020

FY2021

FY2022

Mar.

Feb.

Jan.

Dec.

Nov.

Oct.

Sep.

Aug.

Jul.

Jun.

May

Apr.

Mar.

Feb.

Jan.

Dec.

Nov.

Oct.

Sep.

Aug.

Jul.

Jun.

May

Apr.

Mar.

Feb.

Jan.

Dec.

Nov.

Oct.

Sep.

Aug.

Jul.

Jun.

May

Apr.

Mar.

Feb.

Jan.

0

FY202317

[Real Estate] Referential Information
Average daily rates (ADR) and occupancy rates *1
Tokyo metropolitan area ADR
Tokyo metropolitan area occupancy rate(right axis)
21,00018,000

92.2%

83.3%

92.6%

92.2%

93.9%

94.3%

95.4%

86.6%

88.6%

90.5%

90.8%

88.7%

17,221

15,00015,853

14,61915,21012,00016,66514,14014,288

9,521
6,000
（¥）

FY2013100.0%

90.9%
80.6%

90.9%

16,654
15,44913,549

73.9%

79.7%

*2

16,167
11,83028.9%

13,74816.8%

10,287FY2014FY201546.8%

FY2016FY2017FY2018FY2019FY2020

FY2021

40.0%

40.9%

11,912
20.0%

8,968
8,358
FY202260.0%

12,782

12,55010,210

80.0%

73.1%

*2

11,616
9,000

Kansai area ADR
Kansai area occupancy rate(right axis)

FY20230.0%

Non-Japanese guests as a percentage of overnight-stay guests
50.0%

38.6%

40.0%

31.4%

30.0%
20.0%
10.0%
0.0%

38.1%

36.9%

22.7%
14.9%
12.3%

FY2013

37.0%

42.3%
40.6%

45.6%

Tokyo metropolitan area
44.8%

39.9%
37.6%

Kansai area

The total figures for
FY2023 is 17.4％(+15.7P from previous
year)

33.2%

25.0%
17.3%

FY2014FY2015FY2016FY2017FY2018FY20191.9%
0.4%
FY2020 FY2021

5.7%
0.3%

FY2022

11.4%

FY2023*1 The data omits the COVID-related temporary closures of some hotels.
*2 Since FY2020, we started reporting 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.

18

Entertainment Results
Revenue and profit grew. The stage business continued feeling the pandemic impact (with Takarazuka
Revue having to cancel some productions), but the sports business saw an upturn in Hanshin Tigers’
regular season games compared to the same period last year, when the business was affected byevent restrictions.

（\ million）

FY2023Results

FY2022
Results

Change％Operating revenue

72,28962,864+9,425＋15.0%

Operating profit

12,622

9,263+3,358＋36.3%[Breakdown by type of business]（\ billion）

Operating revenue
FY2023Results

FY2022
Results

Operating profit

Y on YFY2023Results

FY2022
Results

Y on YSports

38.4

29.4

+8.9

7.4

3.7

+3.7

Stage

33.9

33.4

+0.5

6.8

6.9

-0.1

*Not including head office expenses /adjustments.

19

[Entertainment] Referential Information
Hanshin Tigers Home Game : Admission numbers＊(Thousands of people)

Admissions(CY) 2015

2016

2017

2018

2019

2020

2021

2022

2,878

2,911

3,035

2,899

3,091

518

749

2,619

3

4

2

6

3

2

2

3

Ranking* “Admissions” indicates the actual number of admissions for a given season (calendar year).

Takarazuka Revue : Audience numbers
・Number of shows : Takarazuka Grand Theater :368（-22 from previous year）
Tokyo Takarazuka Theater :390（+3 from previous year）
・Shows were suspended during the following periods:
Takarazuka Grand Theater:April 30 - May 19, July 16 – 21, July 29 – Aug. 18, Jan. 10-17（shows cancelled:78）
Tokyo Takarazuka Theater:May 7 - 10, July 30 – Aug. 14(only matinee shows suspended), Aug. 20 – Sep. 3, Jan. 4-13
（shows cancelled:64）(Thousands of people)(FY) 2016

2017

2018

2019

2020

2021

2022

2023

Total

2,825

2,844

2,996

3,128

2,991

1,565

2,727

2,781

Takarazuka Grand Theater

1,149

1,169

1,191

1,207

1,106

485

904

925

Tokyo Takarazuka Theater

1,000

967

992

990

917

460

785

801

Other theaters

623

586

619

598

572

200

428

474

Live screening*1 ・Live streaming*2

53

122

195

333

396

420

610

581

*1 Audiences who paid to see performance screened live in cinema*2 Audiences who paid to view livestream performance on home TV or device（livestreaming began in FY2021）

20

Information and Communication Technology Results
Revenue grew, with the information services business seeing steady order growth. Profit growth was
flat, however, because the broadcasting and communications business experienced a comedown fromthe spike in the previous year, when the business won large orders, and because of higher costs.

（\ million）

FY2023Results

FY2022
Results

Change％Operating revenue

60,35559,181+1,174＋2.0%

Operating profit

5,917

5,867

+50

＋0.9%

21

Travel Results
Revenue and profit grew. The segment continued feeling the pandemic impact in international travel and otherbusinesses. However, the segment experienced a surge in orders for non-travel services such as requests from local
authorities to provide services to Covid patients recuperating at home. Domestic travel sales were steady driven bysubsidized discounts for local residents and for travel across Japan.

（\ million）

FY2023Results

FY2022
Results

Change％Operating revenue

191,400

60,419+130,980＋216.8%Operating profit

15,257-5,748+21,006―

Billings(¥ billion)

500.0

Domestic travel

Overseas travel

400.0
300.0

132.4

146.3

136.8

132.5

129.0

201.1

186.9

200.0
100.0
0.0

290.1

FY2013261.6

FY2014234.7
FY2015FY2016FY2017

136.1

206.6
FY2018

136.7

229.8
FY2019

128.6

203.3
FY2020

119.7
55.9

43.4
5.9
2.5

FY2021

FY2022

34.1
FY2023※Figures for FY2014 to FY2015 represent the simple aggregate amounts from Hankyu Travel International and Hankyu Hanshin Business Travel. The figures from FY2016
and onwards represent the aggregate amounts from the two companies as well as from Hanshin Travel International (offsetting intercompany transactions).

22

International Transportation Results
Revenue and profit grew, with the supply crunch persisting in air and oceantransportation, especially in the first half.

（\ million）

FY2023Results

FY2022
Results

Change％Operating revenue

163,269

143,296+19,973＋13.9%

Operating profit

8,381

8,019

+361

＋4.5%

Air Export Freight Weight

TEU*-measured overseas export volume（unit:thousand ton）

160
140
120
100
80
60
40
20
0

117 115128

141 148
115 121

134
107

93

119

（unit:thousand TEU）

160
140
120
100
80
60
40
20
0

79

92

98 95 103

111 113

121 119

136

147（Note）Total handling volume for Japanese and non-Japanese companies
in the International Transportation Business segment

23Consolidated Statements of Income(Non-operating Profit and Losses)(¥ million)

FY2023Results

FY2022
Results

ChangeOperating profit

89,35039,212+50,138

Non-operating income

12,145

10,885+1,259

8,325

7,167

+1,157

13,063

11,648+1,415

8,768

8,516

+251

88,43238,450+49,982

Equity in income of affiliates

Non-operating expenses
Interest expense

Ordinary profit

24Consolidated Statements of Income(Extraordinary Income and Losses)
FY2023Results-13,420

FY2022
Results
142

7,927

42,969-35,041

Gain on sale of property and equipment

1,394

366

+1,028Gain on contributions for construction

2,530

28,239-25,709

Gain on sale of investment securities

1,942

3,702

-1,760

Other

2,060

10,661-8,60021,34842,827-21,478

4,986

28,302-23,315

12,672631+12,040

3,689

13,892-10,203(¥ million)

Extraordinary income and losses
Extraordinary income

Extraordinary losses
Loss on reduction of property and equipment
Loss on impairment of fixed assets
Other

Change-13,56225

Consolidated Statements of Income(Profit attributable to Owners of Parent)
FY2023Results(¥ million)

FY2022
Results

ChangeProfit before income taxes

75,012

38,592+36,420

Total income taxes

23,422

13,256+10,166

Income taxes—current

18,2499,963+8,285

Income taxes—deferred

5,173

3,292

+1,88051,58925,335+26,253

4,636

3,916

+719

46,952

21,418+25,534

ProfitProfit attributable to non-controllinginterests
Profit attributable to owners ofparent26

Consolidated Balance Sheets

Assets（\ million）

FY2023Results

FY2022
Results

ChangeCurrent assets

428,082

365,811+62,271 Land and buildings for sale +27,275

Noncurrent assets

2,437,328

2,357,030+80,297

2,865,410

2,722,841+142,568

Net assets

Liabilities

Total assets
Current liabilities

499,684

426,659+73,025

Remarks

Property and equipment and intangible assets＋55,994

FY2023Results
Dept
Bonds

Long-term liabilities

1,384,785

1,380,818+3,966

Commercial paper
Lease obligations
Interest-bearing debt

FY2022
Results

822,595 795,213
260,000 237,000
10,00050,00013,755
13,7501,106,351 1,095,965

Change＋27,382+22,999-40,000+4＋10,386

1,884,470

1,807,477+76,992

Increase in advances received and long-term deferred
contribution for construction

Shareholders' equity

878,110

843,332+34,777

Net income attributable to owners of the parent＋46,952
Payment dividend -12,125

Accumulated othercomprehensive income

28,69227,016+1,676

Non-controlling interests

74,13745,014+29,122

Total net assets

980,940

915,363+65,576

31.6%

32.0%

-0.4p

Total liabilities

Equity ratio27Consolidated Statements of Cash Flows(¥ million)

FY2023

FY2022

Results

Results

Cash flows from operating activities

132,091

81,844

Income before income taxes

75,012

38,592

Depreciation and amortization *1

62,22359,945

Impairment loss

12,672631

Decrease (increase) in inventories-29,286-2,560Cash flows from investing activities-113,216-96,442

Purchases of noncurrent assets-92,775-131,491

Purchases of investment securities *2-50,308
4,733

9,187

Receipt of contributions for construction

22,68031,242-8,981

15,141-6,10430,303

Dividends paid

-12,125-12,126

Proceeds from non-controlling shareholders associated with establishing consolidated subsidiaries

14,756

Income (expenditure) from borrowings, corporate bonds, or similar items [net] *3

investments in subsidiaries
resulting in change in scopeof consolidation. Such
purchases created an
outflow of ¥28,636 million
in FY2023 and no cash flow
in FY2022.

－ *3“Similar items” includes

Increase (decrease) in cash and cash equivalents

11,797

1,441 commercial papers.
1,983

Cash and cash equivalents at beginning of year

29,422

25,222155

2,215

41,37529,422

Effect of exchange rate changes on cash and cash equivalents

Increase in cash and cash equivalents from new consolidations of subsidiaries
or similar events *4

Cash and cash equivalents at end of year

1,904

*2

-5,142 This includes purchase ofProceeds from sales of investment securities

Cash flows from financing activities［Note］*1
This includes amortized
losses related to Covid,
which were included in the“other” category of
extraordinary losses. Suchlosses created an inflow of¥186 million in FY2023 andan inflow of ¥837 million in
FY2022.

*4“Similar events” includes
mergers with a nonconsolidated subsidiaries.
Such acquisitions created an
inflow of ¥155 million in
FY2023 and no cash flow in
FY2022.

28

《Reference》 Consolidated Statements of Capital Expenditure(\ billion)

FY2023Results①

Total

FY2023
Forecasts(As of Feb.)
②

63.0

81.6

Change=①-②-18.6

FY2023
Forecasts(As of Oct.)③

Change=①-③

FY2023
Forecasts(As of May)④

ChangeFY2022
Results

Change

=①-④

⑤

=①-⑤

81.6

-18.6

89.0

-26.0

120.3

-57.3

[Breakdown for each business segment]

Urban Transportation

27.4

34.9

-7.5

38.2

-10.8

30.3

-2.9

Real Estate

24.5

30.1

-5.6

34.0

-9.5

77.5

-53.0

Entertainment

2.4

4.0

-1.6

4.3

-1.9

5.1

-2.7

Information andCommunication
Technology

5.6

6.7

-1.1

6.1

-0.5

5.1

+0.5

Travel

0.7

0.9

-0.2

1.1

-0.4

0.7

-0.0

International
Transportation

2.4

3.2

-0.8

3.3

-0.9

2.5

-0.1

Note:(1) The figures announced in February 2023 did not include a segment breakdown.
(2) The current segment structure has been applied to the FY2022 results.

29

[Reference] Consolidated Statements of Depreciation and Amortization, EBITDA*(\ billion)

Total Depreciation andamortization

FY2023Results

FY2023
Forecasts(As of Feb.)

ChangeFY2023
Forecasts(As of Oct.)

ChangeFY2023
Forecasts(As of May)

ChangeFY2022
Results

Change

①

②

=①-②

③

=①-③

④

=①-④

⑤

=①-⑤

62.0

62.7

-0.7

62.7

-0.7

62.7

-0.7

59.1

+2.9

[Breakdown for each business segment]

Urban Transportation

26.2

26.7

-0.5

27.0

-0.8

27.2

-1.0

Real Estate

24.9

24.9

-0.0

24.9

-0.0

21.8

+3.1

Entertainment

3.7

3.7

+0.0

3.9

-0.2

3.5

+0.2

Information and Communication
Technology

5.1

5.2

-0.1

5.6

-0.5

4.8

+0.3

Travel

0.9

0.9

+0.0

1.0

-0.1

0.9

+0.0

InternationalTransportation

1.8

1.7

+0.1

1.8

-0.0

1.6

+0.2

135.0

+18.7

128.0

+25.7

100.7

+53.0

Total EBITDA

153.7

150.0

+3.7

[Breakdown for each business segment]

Urban Transportation

48.7

47.3

+1.4

48.3

+0.4

32.9

+15.8

Real Estate

52.7

50.4

+2.3

50.0

+2.7

41.3

+11.4

Entertainment

16.3

14.7

+1.6

15.1

+1.2

12.8

+3.6

Information and Communication
Technology

11.1

11.2

-0.1

11.6

-0.5

10.7

+0.4

Travel

16.2

5.4

+10.8

-0.9

+17.1

-4.8

+21.0

InternationalTransportation

10.1

7.7

+2.4

6.3

+3.8

9.6

+0.5

*EBITDA = operating profit + depreciation expenses + amortization of goodwill
Note:(1) The figures announced in February 2023 did not include a segment breakdown.
(2) The current segment structure has been applied to the FY2022 results.

30

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2023
(Ending March 2023)
Ⅲ. Summary of the Medium-Term Management
Plan
Ⅳ. Forecasts for Fiscal 2024 (Ending March 2024)

31

Long-Term Vision : Toward 2040

Long-Term
VisionUnder our long-term vision, our group will work as one to transform
into the organization we aspire to be
The slogan for the Long-Term Vision:

Enhancing Line-side areas and expanding fields

Make our line-side communities Strategy

among the Kansai networks

Strategy Make our content as
2compelling as possible

Expand thecoverage of
our line-sidebusiness modelInspiringexperiences

Strategy Increase market share by providing high4
value-added services

High-quality
business support

Hankyu Hanshin DX ProjectContribute to SDGs, 2050 carbon neutrality goal

We sustainably enhance
corporate value

Safe, comfortableurban life3

Better customer
satisfaction

Strategy
the absolute best
1

Contribute to asustainable
society and to bea corporate groupthat grows
alongside thecommunity

Maintain financial health ／ Keep capital costs in mind

KPIs for FY2031
FinancialBusiness profit*
Interest-bearing
debt / EBITDA ratio
ROE¥130.0 billion (plus something
extra)
5 to 6
7% range over med-long term

Non-financial
Rate of CO2 emissions cuts from
FY2014 level:
Culpable incidents in our railway
business:
Employee satisfaction:% of women in management
positions:% of women among new hires:

-46%
Zero
Always better than inprevious survey

2035–2040: Large project tostart driving further growth
Extra: Accumulated gains from DX Project andother initiatives
Profit mainly fromexisting businesses¥ 130.0 bn¥ 130.0 bn¥ 118.0 bn（FY2026 goal)around 10%
Always more than 30%

FY2026

FY2031* Business profit = Operating profit + Equity-method gains related to overseas business investments (in real-estate) See p. 20.

AROUNDAROUND

2035

2040

32

Growth Opportunity Coming to Kansai
Seeds of growth are being sown in Kansai, creating a huge growth opportunity
Redevelopment of Shin-Osaka Station vicinity

National Strategic Special Zone:
A zone for piloting super-city initiatives

Initiatives are underway to pilot innovative services in
Umekita Phase II and Yumeshima.

Designated a hub for emergency urban regeneration, the area is
set to be redeveloped as a node linking Japan’s main transport
artery with the north-south route to Kansai International Airport.

New rail links
Osaka as a global financial city

Plan is to make Osaka a global financial hub that
attracts funds from Asia and beyond.

Site for Expo
2025 andintegrated resort

When built, Naniwasuji Line,
Naniwasuji Connection Line, andShin-Osaka Connection Line will
dramatically improve air and land
access to Osaka, creating greater
potential for Osaka to
become a global hub.

Kobe Airport

Airport will start receiving international charter flights in 2025
(expo year) and scheduled international flights in around 2030.

Kansai International Airport

Airport to get annual traffic to 300 k in early 2030s.

Digitally powered MaaS in Kansai

In an effective digital reach strategy, high-quality
content (tourism, entertainment) in Kansai will be
communicated to inbound tourists, encouraging
them to stay longer in Kansai and thus attract
overseas economic power into the region.

33

Financial Policy for Long-Term Vision

We commit to financial stability in the knowledge that this is essential to ensuring the stable provision of products
and services that contribute to the sustainability agenda and to community building. To meet stakeholders’expectations, we will entrench a culture of cost consciousness with a concrete commitment to maintaining or
improving capital efficiency.

Achieve stable baseline profit

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

Maintain financial health• While we continue to invest capital in large projects and activities togrow our businesses, we also want to maintain our credit rating.
Accordingly, we will tighten control over interest-bearing liabilities,
aiming for a D/E ratio of between 5 and 6.

FY2031 target
Business Profit¥130.0 billion
plus something
extra (from the cumulative
effect of the DX Project)Interest-bearing
debt/EBITDA
ratio
5–6

Maintain or improve capital efficiency

Keepcapitalcosts inmind

(create returns that exceed capital costs)• Our businesses will keep capital costs in mind, committing to maintain or
improve their returns with ROIC (= operating income / invested capital)
as one of the benchmarks.
• To avoid bloated balance sheets, we will be more circumspect about
increasing our stocks (carefully vetting prospective investments with aneye on return), overhaul business approaches, and offload
underperforming assets.
• We will provide stable and generous shareholder returns, maintaining areasonable D/E ratio.
• Through these measures, we aim for the ROE range shown on the right.

ROE
7％ rangeover medium tolong term

34

Medium-Term Plan: Time Period Covered, Context
Time period covered• Four-year period from FY2023 to FY2026

Context• The four-year period will be a time for adapting to the drastic external changes and returning
to pre-Covid growth. During this period, we aim to raise our profit level to ¥100 billion as soon
as possible.
• We will also use the period to take concrete actions under our long-term vision that will build
sustainable profit growth. As part of this, we will increase investment in our overseas realestate business and condominium business to create a foothold for future growth.

Envisaged recovery from Covid impact
FY2021

FY2022

Emergency phase ends here

FY2023Phase 1
In Japan, short-distance travel
resumes. Travel distances gradually
increase, and the impact of physicaldistancing eases off.

FY2024FY2025 and beyond

Phase 2Phase 3

Travel gradually
resumes across theworld.

Covid impact abates. Economic
activity returns mostly tonormal in and outside Japan.
However, there is no full returnto pre-pandemic times.

35

Roadmap to FY2026: Profit Level
In FY2024, we will continue restoring profit growth in our existing businesses to achieve our profit goals for that year.
In this, we will draw upon the outcomes of the actions we took during the pandemic (e.g. actions to strengthen
revenue structure).
To gain the growth momentum necessary for achieving our FY2026 goal, we will deliver outcomes from our recent
business projects (Osaka Umeda Twin Towers South, video streaming in the Entertainment segment, overseas realestate business, DX Project).
Meanwhile, in line with our medium-term plan, we will plant growth seeds that will sprout in FY2026 and beyond(including more investment in overseas real-estate business and condominium business, DX Project).
Profit (= operating profit in FY2023 and earlier years, and business profit thereafter)(¥ billion)

FY2026¥118.0 bn

1,200
120

FY2031¥130.0 bn + extra

Baseline profit:¥100.0 bn

1,000
100

89.4

95.2

800
80

¥90.0 bn

Covid impact

600
60Higher
growthinvestment

FY2024¥100.0 bn loss

400
40

Latest target
今回計画
Result or latest
実績・予想
forecast

200
20

39.2

Emergency
phase

2.1

0
2019
2018
Envisaged phased
recovery from Covid

Pre-Covid

2020
2019

Discounting
bumper businessin Travel and Int
Transp segs

2021
2020

2022
2021

Phase 1

2023
2022

FY2024: Although profit will decrease relative tospike in FY2023 (when the Travel andInternational Transportation segments bumper
demand), when this is discounted, profit continues
on recovery/growth trajectory.

2023
2024

Phase 2

2024
2025

2026
2025

…

2031
2030

（FY）

Phase 3* Business profit = Operating profit + Equity-method gains/losses related to overseas business investments (in real-estate) See p. 40.
In FY2023 and earlier years, we had no equity-method affiliates in our overseas businesses. Thus, for those years, operating profit = business profit.

36

Higher Growth Investment
We will further increase growth investment with an eye on FY2026
and beyond upon the following assumptions:•With Covid abating, the external environment has become more conducive to aggressive growth investment.

•This creates an opportunity to get closer to our FY2031 profit goal (¥130.0 bn + extra). We will increase
investment in our condominium business. To expand the coverage of our line-side business model (strategy 3of the long-term vision), we will also increase investment in overseas real estate, which offers bright growthprospects and in which we are already building a track record.

•

However, the increased investment will only start producing returns after FY2027. Until then, our indicators offinancial health will deteriorate. However, we remain confident that EBITDA growth will return after FY2027, so
our FY2031 target for interest-bearing debt/EBITDA ratio (5 to 6) remains unchanged.
Higher investment in overseas businesses（¥ billion）

 With effective risk controls, we will do thefollowing in promising markets
・ Expand in ASEAN markets and other regions
・ Focus on small-scale projects producing onetime revenue (e.g. residential projects) andgradually increase the scale
・ Collaborate with trustworthy local partners(those who endorse our strategy/values)

1,400
140.0

Get closer to FY2031 profit
goal (¥130.0 bn + extra)

1,350
135.0
1,300
130.0
1,250
125.0
1,200
120.0

 Envisaged scale:・ Initially, we’ll get profit level to ¥10 billion assoon as possible.

1,150
115.0
1,100
110.0
FY2026

FY203137

Growth in Operating/Business Profit*
FY2023 to FY2024
FY2024 to FY2026+¥20.０ bn inreal-terms

118.0 FY2023 Results to FY2024 target ＋¥0.6 bn➚ Railways, Automobile: Higher ridership revenue

Bumperbusiness inTravel and
Int Transp
segs

20.0

(¥ billion)➚ Real Estate: Bigger scale (e.g. condominium business)➚ Hotel: Demand recovery, outcomes of structural reform➘ Travel: Big decrease in profit in solution business(related to COVID-19)➘ International Transportation: Profit down amid return of normalcompetitive environment+¥20.0 bn inreal-terms

FY2024 Targets to FY2025 target ＋¥28.0 bn➚ Railways: Higher rail revenue with recovery in domestic and inbounddemand➚ Real Estate: Higher rental income from Osaka Umeda Twin Towers South

89.4

90.0

ResultLatesttargetLatesttargetFY2023

FY2024FY2026

Business profit

Business profit

Operating profit

due to higher occupancy rate

➚ Real Estate: Bigger scale in overseas real-estate business➚ Hotel: Demand recovery, outcomes of structural reform➚ Entertainment: Bigger audiences, more shows, growth in video streaming➚ Information and Communication Technology: Growth➚ Travel: Recovery in overseas travel demand➚ New revenue streams (e.g. DX Project)*Business profit = Operating profit + Equity-method gains/losses related tooverseas business investments (in real-estate) See p. 40.

38

Operating/Business Profit* Trends Toward FY2026
FY2026 profit target compared with pre-Covid (FY2019) profit level

114.9
Entmt &
others20.9
SpecialfactorRE
50.5(special factor
included)

118.0Entertainment, Info and Com Tech, Travel, Intl Transportation

Entmt &
others▸Entertainment: Use digital tech to grow customer base and drive growth innew profit sources (e.g. video streaming)

Includes adjustment

We aim to exceed pre-Covid levels in all core segments.

90.0
Entmt &
others
16.5▸Information and Communication Technology: Capitalize on DX demand▸Travel: Steadily capitalize on recovery in travel demand, develop solutions businesses(targeting local governments)▸International Transportation: Expand scale in air/ocean freight and logistics

Real Estate (RE)
RE

RE
42.2

We aim for the segment to vastly exceed the pre-Covid level(discounting the special factor*) in FY2026. By then, the Osaka Umeda
Twin Towers South project (including the Phase II component), which
was completed in FY2022, will have started delivering returns, and wewill have significantly grown the overseas real-estate business and thecondominium business in Japan.
*Special factor: Gain from sale of land in eastern section of ‘Saito’ (Ibaraki City,
Osaka)

Urban Transportation(UT)
UT
43.5

FY2019operatingprofitresult

UT
31.3

UT

FY2024business
profitforecast

FY2026business
profittargetWe will maximize profit scale by adding an barrier-free charge andintroducing premium seating while cutting costs (however,segment profit is unlikely to return to the pre-Covid profit level)*Business profit = Operating profit + Equity-method gains/losses related to overseas business investments(in real-estate and other areas) See p.40 for more details.

39New Profit Indicator: Business Profit
The new profit indicator, business profit, applies from FY2024.
Why we started using business profit•

As part of strategy 3 of our long-term vision (expand the coverage of our line-side businessmodel), we are expanding our Real Estate segment overseas. This strategy involves joint
ventures with local developers. Any gains from minor stakes in such joint ventures must berecorded in the non-operating profit entry “equity-method gains.”•

Thus, to accurately indicate profit growth in the Real Estate segment’s overseas real-estatebusinesses, we started using business profit in FY2024, as that covers operating profit plus
equity-method gains. For our long-term vision, what we previously stated as our operating profit
goal is now our business profit goal.
Business profit＝ Operating profit ＋ Non-operating profit: Equity-method gains/losses related
to overseas business investments (in Real Estate segment)

Figure illustrating operating profit and business profit
OperatingprofitNon-operating
profitUrban
Transportation

Real
EstateEntertain
ment

Info &
Coms

TravelInternational
Transportation

Equity-method gains/losses related toinvestments in overseas real estate businessBusiness profit

40

Actions to Maintain or Improve Capital Efficiency
We use ROIC as an indicator of internal control and try to keep a healthy balance between profit and invested capital

General approach

Control the level of invested capital with a view to keeping returns above capital costs
Be discerning
Take new approach to businesses/assets• Choose new investments
discerningly to maintain yieldas measured by ROIC

How we use ROIC

• Overhaul businesses that have slim prospects of delivering profits above capital costs• Consolidate or offload low-yield investments and underperforming assets• Actively focus on short-term-returns opportunities• Replace assets when necessary by using REITs•

Our long-term vision commits us to achieving, in FY2031, a medium-term ROE of 7%. To that end, we will use
ROIC as an indicator of internal control and try to keep a healthy balance between profit and invested capital.

•

Specifically, ROIC will aid us in our medium- to long-term business analyses and business policies and in ourbusiness management cycle and investment decisions.

•

It is vital to control our invested capital in real estate, as this accounts for most of the investments made by
our corporate group. ROIC will serve as an important indicator for this.

•For invested capital in smaller businesses, our basic policy is to grow the scale of the business so that it
improves the group’s overall ROIC (although new investments still require due diligence).

Examples of initiatives Main properties sold in FY2023 (short-term-returns)*Sold to Hankyu Hanshin REIT Asset Management

H-CUBE Minamiaoyama II*(commercial facility)

H-CUBE Kitaaoyama*(commercial facility)

41

Cash Flows■Cash Allocation Strategy‧ In line with the strategy described on p. 37, we have added ¥70.0 billion to the growth investment
budget for FY2023–FY2026, bringing the total cash outflow for the period to ¥790.0 billion.
‧ Since our EBITDA for the same period, at 670.0 billion yen, falls short of this outflow by ¥120.0 billion,
we will cover the shortfall with further borrowing (i.e. by increasing interest-bearing debt) while keeping
an eye on the interest-bearing debt to EBITDA ratio.
Projected cash flows for FY2023–FY2026 period
Inflows

Outflows
Strategic investment
framework

EBITDA
670.0 bn

-30.0 bn

Growth investment -360.0 bn(includes investment in for-sale property andnet increases in equity)¥70.0 bnmore

Additionalborrowing etc.
120.0 bn
Plus 20.0 bn in interest-bearing
debt from new consolidations(¥ billion)

Total CapEx(and lending)-630.0 bn

Maintenance CapEx(investment inmaintenance and renewalof existing infrastructure)

Return to Shareholders,Interest expense, tax
payment etc.

-240.0 bn-160.0 bn

Total outflow-790.0 bn

42Capital Expenditure (and Lending)
CapEx budget for FY2023–FY2026 period(¥ billion)(¥ billion)

Total CapEx (and lending)

630.0 bn

Strategic
investment
framework

30.0 bn

Main growth investments‧ Installation of platform doors and better
Urban
accessibility
Transportation ‧ Kita-Osaka Kyuko Railway Line Extension Project‧ Naniwasuji Connection Line/Shin-Osaka
Connection Line Project

Growthinvestment

360.0 bn

Real Estate(includes investment in for-sale property andnet increases in equity)

MaintenanceCapEx(investment inmaintenance andrenewal of existing
infrastructure)240.0 bn

‧ Umekita Phase II Development Project‧ Shibata 1 Project‧ Senri-Chuo Redevelopment‧ Projects in Tokyo Metropolitan Area (Yaesu 2Naka Redevelopment, Development of site of
the Hotel Grand Palace)‧ Real Estate segment’s overseas expansion‧ Expansion of domestic condominium business‧ Expansion of short-term-returns businessEntertainment ‧ Relocation of Hanshin Tigers’ farm facility
Other‧ IT strategy, digital transformation

43Performance Indicators (–FY2026)
FYI
FY2023Results

Business profit (1 + 2)
Operating profit (1)Equity-method gains related tooverseas business investments (2)※1

EBITDA

Interest-bearing debt
Interest-bearing debt /EBITDA ratio※2

D/E ratio

Profit attributable to owners of parent
ROE

FY2024
Forecasts

FY2026
Targets

FY2026
Previous targets¥89.4billion¥90.0billion¥118.0billion¥115.0billion¥89.4billion¥87.7billion¥115.0billion¥115.0billion－¥2.3billion¥3.0billion－¥153.7billion¥156.0billion¥193.0billion¥190.0billion¥1,106.4billion¥1,190.0billion¥1,230.0billion¥1,180.0billion

7.2

7.6

6.4

6.2

1.2

1.3

1.2

1.1

¥47.0billion¥52.0billion¥75.0billion¥75.0billion

5.3%

5.6%

7％ range

7％ range¥1,063.5billion¥1,165.0billion¥1,205.0billion¥1,155.0billion

6.9

7.5

6.2

6.1

(Reference)※3

Net interest-bearing debt

Net interest-bearing debt/EBITDA ratio※1 EBITDA = Business profit (Operating profit + Equity-method gains/losses related to overseas business investments) +Depreciation expenses + Amortization of goodwill※2 D/E ratio＝interest-bearing debt/equity※3 Net interest-bearing debt=interest-bearing debt - cash and deposits
44Blank Page

45

Strategies for Achieving Long-Term Vision Long-Term
VisionKansai（Umeda and other line-side areas）

Make our line-side communities theabsolute best among the Kansai networks(further entrench position in Umeda)

Strategy 3

Expand the coverageof our line-sidebusiness model

Make our content as • To make our content as compelling as
possible, we will actively leverage digitalcompelling as possible innovations while expanding thecustomer base.

Sophisticatedbusiness
model

Strategy 4

Increase market share by • Use tech and knowhow to expand value scope of our businesses
providing high value-added • Provide high-quality, competitive services to increase business scale andmarket share
services

Experiencesthat inspire
dreams andexcitement

Strategy 2• Leveraging the knowhow
we gain in the first two
strategies, we will expand
the line-side businessmodel (e.g. building
abundant communities)
beyond line-side areas.

Better customer satisfaction• To adapt to a shrinking and aging population, we will focus on making
our line-side areas much more attractive through cumulative efforts
such as community building and actively leveraging digital innovations.
• Guided by the Umeda Vision, we will use new projects (e.g. Shibata 1)
to make Osaka Umeda a globally competitive hub.

(develop new content)

Safety and comfort inurban life

Strategy 1 (core strategy)

Beyond our line-side areas (Overseas, Tokyo)

Hankyu Hanshin DX Project (e.g. HH cross ID)
Contribute to SDGs, 2050 carbon neutrality goal (address key sustainability themes)
Stronger ties with external partners

Use(e.g. digital tech)

Accumulate

Coordinated transformation across group (guided by long-term vision)

Constructed capital, social capital,
intellectual capital

capital, naturalUse, accumulate tangible/intangible assets Human capital, financial
capital46

Progress in Strategy 1
Strategy 1 （core strategy)

Make our line-side communities the absolute best among the Kansai networks(further entrench position in Umeda)

Providing safe, reliable, and comfortable rail
services
To further enhance safety and reliability, we are introducing an
barrier-free charge to fund a quicker rollout of accessibility
improvements (including platform doors).
• Hankyu Corporation and Hanshin Electric Railway started
collecting the charge in April to fund the rollout of platform
doors.

Building line-side communities
To increase resident and non-resident populations（ e.g.
tourists and shoppers ） in our line-side areas, we willdevelop hub areas to raise their value (e.g. Senri-Chuo
Redevelopment), build new stations, and develop housing.
• In November 2022, Hankyu Corporation signed an MoU
with Amagasaki City and Nishinomiya City for opening a
new station (Mukogawa) on the Mukogawa bridge
between Mukonoso and Nishinomiya-Kitaguchi Stations
on the Hankyu Kobe Line.

• Hankyu Corporation will launch premium (payable) seating in
FY2025. Hanshin Electric Railway is eyeing the possibility of
doing so too following a pilot.

Planned rail links
Plans are underway to build
the new rail links (NaniwasujiConnection Line/Shin-Osaka
Connection Line). These links
will open economic flows fromacross Japan and also attract
global capital.

• In September 2022,
Hankyu Corporation
launched a digital service(Machinaka Mimamorume
Ouchi Plus) in Itami City
in which parents check
whether their child has
returned via an app oremail.
47

Progress in Strategy 1
Strategy 1 （core strategy)

Make our line-side communities the absolute best among the Kansai networks(further entrench position in Umeda)

Actions for Umeda Vision
Guided by the Umeda Vision, we will work on large projects and upgrade our real-estate holdings in order to upgrade
the urban amenities (offices, commercial, hotels) to make Osaka Umeda a world-class hub for innovation and an
attractive tourist destination.

Umekita Phase II Development Project(Grand Green Osaka)• Umekita Phase II Development Project has been named
Grand Green Osaka.
• In the summer of 2024, the zone will partly open ahead of
the full opening in FY2028.
• In FY2025 H2, Hankyu Hanshin Hotels will open a hotel
here under the upscale brand Gran Respire Osaka.

Shibata 1 Project• We will develop plans toredevelop the area, taking abroad perspective. For example,
we will enhance amenities andgenerally upgrade the vicinity ofHankyu Osaka Umeda Station,
the entrance to Osaka Umeda.
• In October 2022, we launched the Osaka-Umeda 2030
Project Team to coordinate groupwide action on the
Shibata 1 Project and ensure alignment with the Umeda
Vision.
Osaka-Umeda 2030 Project

Team’s subcommittees

Construction
andEngineering

StationVicinity

StationAmenities

Software andContent

CommunityBuilding andPR• We will flesh out the plans and accelerate negotiations withstakeholders (e.g. governmental authorities) so we canmake a start as soon as possible.
48

Progress in Strategy 2Strategy 2Make our content as compelling as possible (develop new content)
SportsStage

We will boost the team power of Hanshin Tigers and enhance
the convenience and usability of Hanshin Koshien Stadium toprovide a valuable space and deliver compelling sports
content.

We will make the stage content even more attractive andintegrate digital tech to improve the service level and expand
the content range, so that we can attract wider audiences
and build fan loyalty.

• We have started organizing festivities to markHanshin Koshien Stadium’s centenary in 2024.
• We are improving the stadium’s conveniencethrough measures such as enhancing in-stadium
network connectivity, providing e-ticket options,and expanding payment options (using a new POS
system).
• In February 2025, we will relocate theHanshin Tigers farm facility toOdaminami Park Baseball Field in
Amagasaki. This move will hugely
improve the training environment,
enabling the Tigers to nurture astronger team.

• In September 2022, we launched an app
called Takarazuka Revue Pocket toencourage more subscriptions to
Takarazuka Revue ID and to strengthen
engagement with casual fans.
• In August 2022, we started streamingshows to members of Takarazuka
Tomonokai via the group’s streaming
platform.
• We are planning special events tocommemorate Takarazuka Revue’s
110th anniversary in 2024.

Travel・We will become the overwhelming leader in a guided tours.
・We will expand our target audience (to include younger age
groups like pre-seniors) and use digital technology to
improve productivity (e.g. improve online recruitment).
・We will start targeting inbound tourists too.

• April 2022: Tour app fully launched
To raise the download rate, we will
enhance the app’s content (e.g.
recommendations, digital catalogue,
loyalty program).
49

Progress in Strategy 3
Strategy 3

Expand the coverage of our line-side business model
Expand real-estate businesses beyond line-side areas
Overseas: In ASEAN and other markets with brightprospects for sustainable growth, we will leverage ourline-side know how to expand the scale of ourcondominium, buy-and-hold, and fix-and-flip businesses
there.

Note: In FY2024, we start using business profit as a profit indicator inorder to account for profit growth in the overseas real-estate business.

• We acquired Central Park Mall, a leading megamall inWest Jakarta, Indonesia.
• We are engaging in a fix-and-flip business in Phoenix
and Seattle, USA.

Japan (Tokyo Metropolitan Area): We will proceedwith properties under development while exploring
ways to integrate our hotels and entertainment content
into community building efforts. We will intensify shortterm-returns projects to expand the range ofredevelopment and rebuilding projects.
• We previously acquired anddeveloped four properties in HCUBE, a low-rise, street-facing
commercial facility. We soldthree of them to Hankyu
Hanshin REIT AssetManagement.
• For the Yaesu 2 Naka
Redevelopment, in which weparticipated, demolition work isscheduled to proceed following
approval of the rights conversion
plan at the end of March, 2023.

Central Park Mall

Residential property in
Seattle50

Progress in Strategy 4
Strategy 4

Increase market share by providing high value-added services
Enhance value-added services we provide
Use tech and knowhow to expand value scope of our businesses.
Provide high-quality, competitive services to increase business scale and market share.

Information andCommunication Technology• To enhance safety, comfort, andefficiency in our railway business, weare piloting and rolling out local 5G
connectivity and AI-powered hazard
recognition to the Hanshin Main Line(having previously introduced it on the
Mukogawa Line).
AI
analytics
serverWarning
Rail staff
device5G routerVideo
imagery

Approaching train
Fall

CameraVehicle
stuck

Video
analytics

TravelInternational Transportation• We expanded our Covid-related solutions
for local governments, including
monitoring the health of Covid patients,
call center service for fever cases, andoperating facilities for recuperation.
• Through these services, we forgedstronger connections with the local
governments concerned. We will use
these connections to gain new business(unrelated to Covid).

• While expanding the scale of thebusiness, we are also transforming
the portfolio (strengthening ocean
freight and logistics) to further
develop our network in Asia andexpand into new regions with bright
growth prospects (e.g. Africa).

*Services for local governments are also
being developed in the Information andCommunication Technology segment.

Local
5G
5G
routerSpeaker
Alert

Platform

Level crossing

51

Hankyu Hanshin DX Project
Provide our DX platform for use inside and outside our organization
DX infrastructure

・ We are rolling out our DX infrastructure
across our businesses and encouraging its
use.
・ We are using the DX platform to develop
digital services in stage and hotel businesses

Digital services

・We currently provide 10 services with HH
Cross ID (we released a hotels app in
January 2023).
・We are preparing to launch multiple projects.

HH cross ID

Custo
mer

Marketing analytics

・We are analyzing data on 8.4 million
customers across 10 business units
・Hankyu Nishionomiya Gardens andHankyu Travel International are doing
test marketing based on the insights
gained so far.
Purchase history

Existing
services
New
servicese.g. digital coupons,
digital member ID
e.g. communication services (Wi-Fi),
streaming

Provide services for different life stages
Apps

Reach out tocustomers further

Groupwide
customerdatabase

Use insights (e.g.
purchase history) to
guide marketing
Analytics lab

Offer DX-based business model to othercompanies

DX 2.0• As we want share the DX platform more broadly, we are inviting other companies to use it,
beginning with Hankyu Hanshin Toho Group, rail operators, companies in general, and thencompanies operating in our line-side areas.
• We already have one company on board. Other companies may join in FY2024.

By sharing costs with partners, we can operate slimmer and cover a wider
array of data.

52

Contributing to SDGs and the 2050 Carbon Neutrality Goal
Promote sustainability across group, following PDCA cycle
Items of business during Corporate Sustainability
Committee meetings· Hearing reports on actions for key sustainability themes· Assessing, analyzing ESG disclosures· Analyzing broad sustainability trends

Recognition for our ESG efforts■ Listed for first time on FTSE Blossom Japan Sector
Relative Index (June 2022)■ Best rating (AAA) on MSCI ESG Ratings forsecond year running■ Listed on MSCI Japan ESG Select Leaders Index
for sixth year running■ Continually listed on MSCI Japan Empowering
Women (WIN) Select Index■ Continually listed on S&P/JPX Carbon Efficient
Index
FTSE Blossom Japan Index Series
https://www.ftserussell.com/products/indices/ftse4good
MSCI https://www.msci.com/our-solutions/esg-investing53

Ⅰ. Executive Summary
Ⅱ. Performance Highlights for Fiscal 2023
(Ending March 2023)
Ⅲ. Summary of the Medium-Term Management
Plan
Ⅳ. Forecasts for Fiscal 2024 (Ending March 2024)

54

Consolidated Statements of Income (Summary)（￥ billion）

FY2024
Forecasts

FY2023Results

ChangeRemarks

Revenue growth is forecasted on the basis that
+31.7 ＋3.3% the Real Estate segment will gain higher
condominium sale income and that the Urban
Transportation segment will see some recovery in
ridership. Flat profit growth is forecasted on the-1.7 -1.8% basis that the Travel and International
Transportation segments will experience a drop in
profit relative to the bumper profit they[+0.6] [＋0.7%] experienced in FY2023.

1,000.0

968.3

Operating profit

87.7

89.4

[Business profit][90.0][89.4]

Ordinary profit

87.0

88.4

-1.4 - 1.6%

52.0

47.0

Growth is forecasted on the basis thatextraordinary loss will be lighter relative to the+5.0 ＋10.7% level in FY2023, when we recorded impairment
loss for some assets.

120.4

63.0

+57.4

Depreciation and amortization

63.7

62.0

+1.7

Financial balance (1) - (2)

-10.2

-7.5

-2.7

Interest and dividend income(1)

0.9

1.3

-0.4

Interest expense(2)

11.1

8.8

+2.3

Operating revenue

Profit attributable toowners of parent（Reference）
Capital Expenditures

Note: Business profit = Operating profit + Equity-method gains/losses related to overseas business investments (in real-estate)
In FY2023, we had no equity-method affiliates in our overseas businesses. Thus, for this year, operating profit = business profit.

55

Consolidated Statements of Income (Business Profit)(Breakdown for each business segment)(¥ billion)
Upper row:
Operating revenue
Lower row:
Operating profit[Business profit]

Total

FY2024
Forecasts

FY2023Results

ChangeRemarks

1,000.0

968.3

31.7

87.7

89.4

-1.7

[90.0][89.4][+0.6]

205.1

185.6

+19.5

31.3

22.4

329.4
39.9
[42.2]

282.0
27.9[27.9]

75.0

72.3

11.7

12.6

Revenue growth is forecasted on the basis that the segment will see
an increase in admissions for Hanshin Tigers’ regular season games
and Takarazuka Revue shows. Lower profit is forecasted because of-0.9 higher costs (e.g. advertising) in the sports business.

65.8

60.4

+5.4 services business will see order growth. Flat profit growth is(Breakdown for each business segment)
Urban Transportation

Real EstateEntertainment

Information and Communication
Technology

6.1

5.9

205.0

191.4

0.4

15.3

107.8

163.3

2.5

8.4

TravelInternational
Transportation

Revenue and profit growth is forecasted on the basis that we will add
an accessibility charge in FY2024 (the proceeds will all be used forfunding accessibility improvements) and that the railway and+8.9 automobile businesses will see some recovery in ridership.

47.4 Revenue and profit growth is forecasted on the basis that
12.0 condominium sales income will increase and that the hotel business[14.3] will benefit from a recovery in accommodation demand.
+2.7

Revenue growth is forecasted on the basis that the information

forecasted in expectation of heavier variable costs (sales costs will+0.2 rise with revenue growth and personnel expenses will rise withbusiness expansion).
Revenue growth is forecasted on the basis that overseas travel will

+13.6 recover (on a full-year basis, it will recover to just shy of 50% of the
FY2019 level). Lower profit is forecasted on the basis that thesegment will see fewer orders for non-travel services (e.g. services-14.9 for local governments to support Covid patients recuperating athome).

-55.5 Lower revenue and profit is forecasted on the basis that the supply
crunch will continue easing for air and ocean freight, resulting in a

-5.9 return to the normal buyers’ market.

Note: Business profit = Operating profit + Equity-method gains/losses related to overseas business investments (in Real estate)
In the FY2023 results column, the lower row for each segment other than Real Estate can also be read as “business profit.”

56

[Urban Transportation] Railway Performance Forecasts
Hankyu Corporation
Fare revenues (¥ million)*
FY2024
Forecasts

FY2023Results

Passenger volumes (Thousands)*

ChangeFY2024
Forecasts

FY2023Results

ChangeCommuter pass

31,65329,900+1,752(＋5.9%)

308,035

299,570+8,465(＋2.8%)

Workers

27,40725,935+1,471(＋5.7%)

213,677

210,671+3,005(＋1.4%)

Students

4,246

3,965

+281

(＋7.1%)

94,35788,898+5,459(＋6.1%)

Other tickets

62,92654,908+8,018 (＋14.6%)

299,460

272,065 +27,395 (＋10.1%)

Total

94,58084,809+9,770 (＋11.5%)

607,496

571,636 +35,860(＋6.3%)

Barrier-free charge: 3.6 billion yen

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2024
Forecasts

FY2023Results

Passenger volumes (Thousands)*

ChangeFY2024
Forecasts

FY2023Results

ChangeCommuter pass

11,698

11,096+602(＋5.4%)

117,340

114,974+2,365(＋2.1%)

Workers

10,490

9,996

+493

(＋4.9%)

91,94991,956-7[-0.0%]

Students

1,207

1,099

+108

(＋9.8%)

25,391

23,017

Other tickets

22,311

19,365+2,946 (＋15.2%)

116,020

103,696 +12,323 (＋11.9%)

Total

34,01030,462+3,548 (＋11.6%)

233,360

218,671 +14,688+2,373 (＋10.3%)(＋6.7%)

Barrier-free charge: 1.3 billion yen＊ 1) Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
2) For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
3) Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway.
4) In FY2024, Hankyu Corporation and Hanshin Electric Railway will introduce a barrier-free charge. This charge will be added toregular rail fares and included in the fare revenues from “other tickets” and “commuter pass: workers.”

57

Returning Profits to Shareholders■Shareholder Returns Policy•

We believe in stable dividends and share buybacks. Using total payout ratio as ouryardstick for shareholder returns, we aim for a ratio of 30% while also reinvesting profits toimprove our financial and operating health.

•We cap our treasury holdings at 5% of total issued shares and dispose of any holdings thatexceed this cap.

<Reference> Formula for calculating total payout ratio
Total payout ratio of FY[N](％)=(Total dividend of FY[N])+(Acquisition of treasury stock in FY[N+1])(Profit attributable to owners of parent in FY[N])× 100■Dividends and share buybacks•

FY2023: Annual dividend will be ¥50 per share (¥25 interim + ¥25 year-end). Shares will
be repurchased with a cap of ¥2.0 billion.*•

FY2024: Annual dividend will be ¥50 per share (¥25 interim + ¥25 year-end). Shares will
be repurchased.
Acquisition of treasury stock

9.1 bn¥35

10.0 bn

9.8 bn¥40¥40

Total dividend

Dividend per share

4.3 bn2.0 bn¥50¥50

8.8 bn9.9 bn9.9 bn12.2 bn

12.2 bn

FY2017FY2018FY2019FY2020

FY2021¥50¥50*

12.1 bn 12.1 bn
FY2022

FY2023¥50（Scheduled）

FY2024* This is subject to shareholder approval at the General Meeting of Shareholders on June 16, 2023.
58

[Reference] Consolidated Statements of Capital Expenditure(¥ billion)
Total capital expenditure

FY2024
Forecasts

Main investments

120.4

FY2023Results

Main investments

63.0

Change+57.4(Breakdown for each business segment)

46.3

・ Kita-Osaka Kyuko Railway Line Extension
Project
・ New rolling stock, remodeling of existingrolling stock・ Accessibility improvements

27.4

Real Estate

49.7

・ Umekita Phase II Development Project・ Project to develop west side of Hankyu
Nishinomiya Gardens
・ Shibata 1 Project・ Yaesu 2 Naka Redevelopment

24.5

Entertainment

10.6

・ Project to relocate Hanshin Tigers farm

2.4

+8.2

Urban Transportation

・ Kita-Osaka Kyuko Railway Line Extension
Project
・ New rolling stock, remodeling of existingrolling stock・ Umekita Phase II Development Project・ Project to develop west side of Hankyu
Nishinomiya Gardens

+18.9

+25.2

Information and Communication
Technology

6.2

5.6

+0.6

Travel

1.3

0.7

+0.6

International Transportation

3.2

2.4

+0.8

59

[Reference] Consolidated Statements of Depreciation and amortization, EBITDA*(¥ billion)

Total Depreciation and amortization

FY2024
Forecasts

FY2023Results

Change

63.7

62.0

+1.7

Urban Transportation

27.1

26.2

+0.9

Real Estate

25.0

24.9

+0.1

Entertainment

3.9

3.7

+0.2

Information and Communication Technology

5.7

5.1

+0.6

Travel

1.0

0.9

+0.1

International Transportation

1.9

1.8

+0.1

156.0

153.7

+2.3

Urban Transportation

58.4

48.7

+9.7

Real Estate

67.2

52.7

+14.5

Entertainment

15.6

16.3

-0.7

Information and Communication Technology

11.9

11.1

+0.8

Travel

1.4

16.2

-14.8

International Transportation

4.4

10.1

-5.7

(Breakdown for each business segment)

Total EBITDA(Breakdown for each business segment)*EBITDA = Business profit (Operating profit + Equity-method gains/losses related to overseas business investments) + Depreciation expenses +amortization of goodwill
60[Reference] Operating Revenue and Operating (Business) Profit in Main Segments(¥ billion)

FY2024
Forecasts

Urban Transportation

Operating profit[Business profit]

Operating revenue
FY2023Results

ChangeFY2024
Forecasts

FY2023Results

Change

205.1

185.6

+19.5

31.3

22.4

+8.9

147.8

134.5

+13.3

35.7

26.5

+9.2

Automobile

43.5

40.2

+3.3

1.5

0.7

+0.8

Retailing

14.0

12.0

+2.0

1.0

1.0

-0.0

Others

9.8

8.9

+0.9

0.7

0.6

+0.1

329.4

282.0

+47.4

39.9

27.9

+12.0

[42.2][27.9][14.3]

Real estate leasing

123.5

126.2

-2.7

31.9

32.4

-0.5

Real estate sales and others

175.9

137.4

+38.5

15.7

9.1

+6.6

6.8

3.2

+3.6

2.8

1.1

+1.7

[5.1]

[1.1]

[+4.0]

53.4

44.2

+9.2

0.2

-4.8

+5.0

75.0

72.3

+2.7

11.7

12.6

-0.9

Sports

39.4

38.4

+1.0

6.4

7.4

-1.0

Stage

35.5

33.9

+1.6

7.0

6.8

+0.2

[Breakdown]

Railway

Real Estate[Breakdown]Overseas real estate
HotelEntertainment[Breakdown]Note（1） Segment totals may not match the aggregate of the amounts for each type of business due to separate head office
expenses/adjustments.
（2） As of FY2024, overseas real estate is presented as an independent sub-segment. The segment results for the comparative
year, FY2023, have been retroactively adjusted accordingly.
（3）Business profit = Operating profit + Equity-method gains/losses related to overseas business investments (in Real estate)
In the FY2023 results column, the lower row for each segment other than Real Estate can also be read as “business profit.”61