INTEGRATED REPORT 2022

Securities code: 9042

Group Management Philosophy
MissionWhat we try to achieve

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

ValuesWhat is important to us

Customers First

Sincerity

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

Gain customers conﬁdence byalways being sincere.

Foresight & Creativity

Respect for People

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

Everyone is absolutely
invaluable to the Group.

Principles

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

1

Hankyu Hanshin Holdings Integrated Report 2022

Sustainability Declaration
General Principles

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

Six priority issues (materiality matrix)
See page 46 For details

Safe, reliableinfrastructure

Thriving
communities

Life designs
for tomorrow

Empowering
individuals

Environmental
protection

RobustgovernanceBusiness plan framework

Contributing to a sustainable society

Communities

Partners

Employees

Nextgeneration

Creditors
Customers

Shareholders

Sustainably enhance corporate value

The core elements
underlie our pursuitLong-Term Vision
Medium-Term Management Plan

The vision and strategy
for the Groupʼssustainable growth, andthe speciﬁc plans fortheir implementationof sustainable growth

Sustainability Declaration
Our value to societyGroup Management Philosophy

Hankyu Hanshin Holdings Integrated Report 2022

2

Profile

Contents

00
1
3
5
7
9
11

ProﬁleGroup Management Philosophy
Sustainability Declaration
Contents
Value Creation Trajectory
Business Overview

Value Creation Process
Message from the Chairman

19

Message from the President

Task Force on Climate-related Financial Disclosures (TCFD)

51

Business Strategy
51

Urban Transportation

57

Real Estate

63Entertainment

67

Information and Communication Technology

69

Travel71

International Transportation

03

Creating Real Value:
The Foundations

Long-Term Vision: Toward 2040

75

25

Initiatives Based on the Strategies of
the Long-Term Vision

83

Promotion of the Hankyu Hanshin
DX Project89

S Empowering individuals

91

E

31

37

Initiatives and External Evaluation

48

Creating Real Value:
Our Story

17

33

Sustainable Management

47

Financial Highlights / Non-Financial Highlights

15

Creating Real Value:
The Processes

45

Service Area

01
22

02

Medium-Term Management Plan
Special Feature ①

Human Capital̶ Empowering Individuals

G Robust governanceDirectors and Audit & Supervisory Committee Members

85

Audit & Supervisory Committee Member Tripartite Discussion

94

Chapter

Special Feature ②

Helping to Develop Communities with Low Environmental Impacts
Environmental protection

04

Financial Section andCorporate Data

99

Consolidated Eleven-Year Summary

101

Business Risks

103

Consolidated Balance Sheets

105

Consolidated Statements of Income /Consolidated Statements of Comprehensive Income

106

Consolidated Statements of Changes in Net Assets

108

Consolidated Statements of Cash Flows

109

Notes to the Consolidated Financial Statements

136

Others137

Major Group Companies

138

Company Overview and Investor Information

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

Deﬁnition of the areas served by the Hankyu and Hanshin lines:
Below are lists of areas with Hankyu Corporation and Hanshin Electric Railway stations(including tier 2 railway operators).
Osaka Prefecture: Osaka City (Fukushima, Konohana, Nishi, Naniwa, Nishi-Yodogawa,
Higashi-Yodogawa, Yodogawa, Kita, and Chuo, out of a total of 24
wards); and Toyonaka, Ikeda, Suita, Takatsuki, Ibaraki, Minoh, andSettsu cities and Shimamoto town
Hyogo Prefecture: Kobe City (Higashi-Nada, Nada, Hyogo, Nagata, and Chuo, out of a
total of 9 wards); and Amagasaki, Nishinomiya, Ashiya, Itami,
Takarazuka and Kawanishi cities
Kyoto Prefecture: Kyoto City (Nakagyo, Shimogyo, Ukyo, and Nishikyo, out of a totalof 11 wards); and Muko and Nagaokakyo cities and Oyamazaki
town

3

Hankyu Hanshin Holdings Integrated Report 2022

Period under Review

This integrated report is based on the ﬁscal year 2022 (April
2021‒March 2022), however it also includes information pertaining
to activities before and after this period.

Forward-Looking Statements

The reader is advised that this integrated report contains
forward-looking statements regarding the future plans, strategies,
and earnings performance of Hankyu Hanshin Holdings, Inc., which
are not statements of historical fact but constitute estimates or
projections based on facts known to the Companyʼs management
as of August 2022. Actual results may be inﬂuenced by various
business risks and uncertainties, and diﬀer substantially from suchstatements.

About the Compilation of this Integrated Report and the
Auditing Company Used
The ﬁnancial section of this integrated report includes a digest of
information including consolidated ﬁnancial statements in the Companyʼs
Securities Report for the 184th period, audited by KPMG AZSA LLC andpresented in a somewhat modiﬁed format. We have presented thisinformation in such a way as to ensure that there is no discrepancy withthe data presented in the annual securities report. However, theintegrated report itself has not been audited by KPMG AZSA LLC.

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Integrated Report 2022 Highlights

From page 22

Long-Term Vision: Toward 2040

In order to respond appropriately to the rapid changes taking place in the socioeconomic
and business environments as a result of the pandemic, and further enhance our corporate
value, we have updated the Long-Term Vision 2025 we formulated and published in 2017,and in May 2022 announced Long-Term Vision: Toward 2040.
The new Long-Term Vision outlines our long-term direction, which is focused on the latter
half of the 2030s, the period in which we expect our large-scale projects to start
contributing to proﬁts. It also presents our management targets for ﬁscal 2031, a waymark
on that path. This report introduces an overview of the Long-Term Vision, and also initiatives
based on the vision s four strategies and the Hankyu Hanshin DX Project.
From page 33 onward, we also take a look at the Medium-Term Management Plan forﬁscal 2023 to 2026, one of the concrete action plans to make the long-term vision a reality.

From page 37

Human Capital̶ Empowering Individuals

To go even further to enhance our human capital as we work
toward our Long-Term Vision, we have set a personnel
strategy that is linked to that vision. Also, under ourmanagement strategy, we will systematically employ and train
the human resources we need, and to maximize individual
performance we aresetting non-ﬁnancial KPIs.
In this report, we
introduce details on ourbasic approach towardenhancing human capitaland speciﬁc initiatives
based on our personnel
strategy.

From page 85

Audit & Supervisory Committee Member Tripartite Discussion

In June 2020, we became acompany with an audit andsupervisory committee. We
held discussions between
the three directors who siton the Audit & Supervisory
Committee, and they
deliberated on topics
such as our governancestructure and sustainable
management.

Reference Guidelines

This report references
the International
Integrated Reporting
Framework set by theInternational Integrated
Reporting Council̶now
part of the IFRSFoundation̶and theMinistry of Economy,
Trade and Industryʼs
Guidance forCollaborative Value
Creation. It also
references the Global
Reporting Initiativeʼs GRI
Standards for its ESG
information.

From page 48

Task Force on Climate-related Financial Disclosures

As part of our response to the TCFD s recommendations, inorder to understand the eﬀect that particularly signiﬁcantdesignated risks and opportunities in our railway operation
and real estate businesses have on our business, we haveundertaken scenario analysis. We introduce the ﬁnancial
impacts that we have calculated using this analysis.

From page 91

Helping to Develop Communities with Low Environmental Impacts

As a corporate group that has developed alongside the local communities
in which we operate, we are forging ahead with initiatives that look to
assist with carbon neutrality by reducing the environmental impact not
only of our own business activities, but of communities as a whole.
This report features actual case studies of the eﬀorts we are making to
improve convenience and lessen environmental impact by expanding our
public transport network,
particularly our railways, andreal-life examples of how
initiatives in our sport businessare bringing customers, local
authorities, and companies
together to help lower
environmental damage.

Role of Each of Our Publications
Publication

Sustainability Data Book
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 an outline of the scope of Group businesses, and a list of Group companies.

Securities Report*

Based upon Article 24, Paragraph 1 stipulated in the Financial Instruments and Exchange Act, this report 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 thisdata 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 abroad understanding of our eﬀorts toward preserving transportation safety. It systematically presents
information about safety for each of our railway companies (Hankyu Corporation, Hanshin Electric
Railway, Kita-Osaka Kyuko Railway, and Nose Electric Railway).

*Japanese only

The Sustainability Data Book provides
detailed information on our ESG approach,targets, initiatives, data, and other topics.

Social:Respect human rights, ensuring businesssafety and reliableness, contribute to local
communities and society, improve
employee satisfaction and create a morepositive workplace, occupational safety &health and health management

Environment:

Environmental management, climatechange, pollution and resources,
biodiversity, and water resources

Governance:

Corporate governance, thoroughcompliance and corruption prevention, risk
management, and taxation transparency

Hankyu Hanshin Holdings Integrated Report 2022

4

Profile

Value Creation Trajectory
We have provided never-before-seen services one after another in a range of ﬁelds, from the development of residential and commercial
facilities to the provision of attractive entertainment, such as Hanshin Tigers games and Takarazuka Revue performances, based on ourrailway operation business. By doing so, we have contributed to high-quality community building, particularly in the areas along our railway
lines, while also ushering in new eras for society. In these ways, we have left our mark across the more than 100 years of our history.

Business Changes and Growth Trajectory
1913

Entertainment

1924

Hankyu 1907

Formation of Takarazuka Girls Revue
Completion of Takarazuka Grand Theater(currently Takarazuka Revue Company)

1910

1926

Start of sales of Ikeda Muromachi
Residential Land Plots

Opening of
Takarazuka Hotel

Real Estate

1907

Urban Transportation

1962 1964
Completion of
New Hankyu Building

1969

Opening of Hotel
Opening of Hankyu
new Hankyu Osaka Sanban Gai

1948

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

Travel

1910

International Transportation

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

Launch of Hankyu Corporation s airline agency; beginning ofoperations as agency for Pan American Airways

1948

Hanshin 1899

TravelInternational Transportation

1899

Launch of Hanshin Electric Railway s airline agency business

Urban Transportation

Establishment of Settsu
Electric Railway

1905

Beginning of operations
linking Kobe (Sannomiya) andouter Osaka (Deiribashi)

1909

Real Estate

Completion of 30 rental houses
in front of Nishinomiya Station(Launch of land and buildings
leasing business)

1924

1927

1967

Launch of land and buildings sales businessOpening of Hotel
HanshinEntertainment
Opening of Koshien
Stadium

1900‒

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

In 1907, Ichizo Kobayashi founded the Minoh-Arima
Electric Railway Company, which would later become
the Hankyu Corporation. With a unique business modelthat combined residential area development, Kobayashi
was an early leader in private railway management.
Going back eight years earlier, 1899 saw theestablishment of Settsu Electric Railway by the railwayʼsﬁrst president, Shuzo Toyama. With the company,
Toyama laid the foundations for Hanshin Electric Railway
as a pioneer of intercity electric railway.

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

A Hankyu train crosses the Inagawa Bridge (circa 1910)

5

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

Hankyu Hanshin Holdings Integrated Report 2022

Performance of Mon Parisby Takarazuka Girls
Revue (1927)

Osaka Tigers (nowHanshin Tigers)
poster1935

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

1960‒
Promoting community buildingin the Osaka-Umeda area
Beginning in the 1960s, focused on the Osaka-Umeda district,
as well as the construction of sites such as the New Hankyu
Building and the Dai Hanshin Building, development of facilities
progressed, including the Hotel new Hankyu Osaka and Hotel
Hanshin.
From 1966, Hankyu Corporation began the comprehensive
development of Hankyu-umeda Station. The station was moved
and expanded to cater to the growing numbers of users,
transforming it into a safer, more comfortable hub. At the sametime, Hankyu Sanban Gai was opened underneath the newstation. Following up on the station, the company soon after
developed the directly connected Hankyu Terminal Building
and a number of oﬃce buildings and commercial facilities,
including the Hankyu Grand Building. All of these projects
catapulted the value of Osaka-Umeda as a business base thatbrings people to the area.
While we are progressing with the development of
Osaka-Umeda, we have also been active in developing
communities along our railway lines. Alongside the Osaka Expo
held in 1970, we helped to develop the Senri area, including by
opening the Kita-Osaka Kyuko Railway Line, and opened commercial
and other facilities, particularly
at major bases around ourlines. Since 1990, we havedeveloped the area around
Hankyu Nishinomiya-kitaguchi
Station, creating a communitythat has garnered praise
as a desirable, line-side
place to live.
Umeda at the completion of the
Hankyu Grand Building (1977)

Creating Real Value:
Our Story

ProfileNov. 2008

Opening of the Hankyu Nishinomiya
Gardens Main Building

Creating Real Value:
The Processes

Financial Section andCorporate Data

2014

May 2010

Opening of Umeda Hankyu
Building Oﬃce Tower

2006

Establishment of Hankyu Hanshin
Holdings, Inc.

Creating Real Value:
The Foundations

Sep. 2012

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

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

Sep. 2009

Opening of Umeda Hankyu
Building (Hankyu Department
Store Umeda Main Store,
Phase I Building)Mar. 2009

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

Apr. 2011

Launch ofMimamorumesafety monitoring
serviceMar. 2010

Completion of the renovationsof Hanshin Koshien Stadium

Feb. 2022

Completion of Osaka Umeda
Twin Towers South wholebuilding in February 2022
(grand opening of the
Hanshin Department Store,
Hanshin Umeda Main Storein April 2022, alongside
renaming of the Umeda
Hankyu Building as Osaka
Umeda Twin Towers North)

Apr. 2013

May 2022

Opening of GRANDFRONT OSAKAMay 2017

Announcement ofLong-Term Vision:
Toward 2040

Announcement of the
Hankyu Hanshin
Holdings Group sLong-Term Management
Vision for 2025

2000‒

2010‒

2020‒

Strengthening each businessʼ
competitiveness throughmanagement integration

Pushing forward further
operational area development
focused on Osaka-Umeda

Utilizing expertise to achievesustainable growth

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

Post-integration, developments included theHankyu Nishinomiya Gardens Main Building, therenovation of Hanshin Koshien Stadium, theUmeda Hankyu Building, and GRAND FRONTOSAKA. These initiatives by the Hankyu Hanshin
Holdings Group managed to progress and deepen
community building in these areas.
Furthermore, in 2009, the Hanshin Namba Line
opened, completing an expansive network
spanning Kobe, Osaka, and Nara.
By merging, Hankyu and Hanshin have been able
to harness the ample synergies inherent in theirvarious operations in their quest to further
enhance corporate value.

Currently, the Group is studying track
placement, for instance by extending theKita-Osaka Kyuko Railway Line and building the
Naniwasuji Connection Line and Shin-Osaka
Connection Line, to further enhance the railway
network.
As well as Osaka Umeda Twin Towers South,
which was completed in February 2022, theGroup is ﬁrmly promoting large-scale development
projects in the Osaka-Umeda area, including the
Osaka Station North District (Umekita) Phase II
Development and the Shibata 1 Project.
The Group is using the community building
abilities it has accrued to continuously provide
people and society with new value, particularlyin the Osaka-Umeda and other operational
areas, and will connect this to its futuresustainable growth.

Hankyu Series 9000 train Hanshin Series 8000 train

Umeda Hankyu Building (now Osaka Umeda Twin
Towers North) concourse

Osaka Umeda Twin Towers SouthHankyu Hanshin Holdings Integrated Report 2022

6

Profile

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

Urban Transportation

Nature of Business

Railway operation business

These operations form a network in the Kansai
area that centers on the railway lines of Hankyu
Corporation and Hanshin Electric Railway. Hankyu
Corporation s railway lines link Osaka (Umeda)
with Kobe, Takarazuka, and Kyoto. Hanshin
Electric Railway is an operator with railway linesthat directly link Kobe with Osaka s major
northern and southern terminals, which are
Osaka-Umeda and Osaka-Namba, respectively.
The operating kilometers of Hankyu Corporationand Hanshin Electric Railway are 143.6 km* and48.9 km,* respectively.
*Including tier 2 railway operators

Automobile business (bus, taxi)

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

Retailing businessEntertainment

Leasing businessThis business owns numerous office buildings andfacilities, mainly in the Osaka-Umeda area and theline-side areas of the Hankyu and Hanshin lines. In
recent years, the business has been actively pursuingdevelopment of real estate in the Tokyo metropolitanarea, including in the short-term-return (fix-and-flip)
business.

Real estate sales and other businessThis business markets condominiums, residential landlots, and detached houses, mainly in the line-side
areas of the Hankyu and Hanshin lines, and the Tokyo
metropolitan area. In recent years, it has used its trackrecord in Japan to start develop residential sales andleasing businesses abroad, particularly in the ASEAN
region. The business is engaged in property management,
building maintenance, and other building operation andmanagement services as well as real estate fundmanagement, including private placement funds and
J-REIT businesses.

Sports businessThis business manages the Hanshin Tigers
professional baseball team, which has a history ofnearly 90 years, as well as the team s home groundand high-school baseball mecca Hanshin Koshien
Stadium and related businesses. The business also
operates a music business (Billboard Live).

Stage businessThis business manages the performances of the
Takarazuka Revue, an organization which has morethan a century of history, and sells related products,
and manages and operates related businesses
engaged in video and music distribution. Further, thebusiness operates Umeda Arts Theater and createsand promotes theatrical productions.

Hotel businessThis business operates a wide range of hotel formats,from city hotels in urban locations like Tokyo or
Osaka through to no-frills hotels, which mainlycomprise guest rooms for overnight stays. In addition
to the hotels mentioned above, the business manages
The Ritz-Carlton Osaka, based on an alliance with the
Ritz-Carlton chain of international luxury hotels.

Hankyu Corporation

Hankyu Corporation＊1

Revenues fromoperations

Hanshin Electric Railway

OperatingincomeFiscal 2022 Results*²

Core Companies

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

Real Estate¥

Hanshin Electric Railway

Hankyu Hanshin Properties

161.6 billion¥

246.6 billion¥

5.6 billion¥

19.4 billion¥¥

62.9 billion
9.3 billion*1 As for our Real Estate Business, Hankyu Corporation and Hanshin Electric Railway collaborate with Hankyu Hanshin Properties to promote urban development of realestate owned by Hankyu Corporation and Hanshin Electric Railway for rent and development in cooperation with transportation networks, local governing bodies andothers in Osaka-Umeda and their line-side areas.
*2 In fiscal 2023, we undertook a partial review of our core business system, and in order to unify the real estate and hotel businesses, we have merged the hotel business
into the real estate business (see page 36). As such, our fiscal 2022 results have been created based on the new, post-change reporting segments.

7

Hankyu Hanshin Holdings Integrated Report 2022

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

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

Information andCommunication Technology
Information and communication technology
business

This business is in charge of the information services
business, which offers a range of IT-based services suchas system development; the broadcasting and communications
business, which provides multi-channel broadcasts,
internet services, and fixed telephone services; and thesafety/education business, which operates ProgLab robot
programming classes for children, and Mimamorume, achild safety service which monitors children s journeys
to and from school.

TravelTravel business

International Transportation
International transportation businessThis business plans, markets, arranges, and supports
travel for Japanese people in Japan and overseas
and for inbound tourists.
The business provides various travel services which
include: media sales to sell packaged tours throughadvertisements in newspaper, internet and othermedia, individual tours with itineraries that can becreated 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 arrangements foroverseas business trips. Also, as well as providing
contracted call center services, the businessprovides solutions for a variety of contracted tasks
for national and local authorities.

As a global forwarder, we have established bases inregions all over the world and developed acomprehensive international logistics business. As theglobal business diversifies, we provide a one-stop
logistics solution that is optimized to our customersʼ
diverse needs by bringing together air freight, sea
freight, and logistics services as a logistics consultant.
Domestic bases: 47 / Overseas bases: 144(As of September 1, 2022)

Hankyu Travel International

Hankyu Hanshin Express

Hanshin Electric Railway¥

59.2 billion¥

5.9 billion‒ ¥ 5.7 billion¥

60.4 billion¥

143.3 billion¥

8.0 billion

Hankyu Hanshin Holdings Integrated Report 2022

8

Profile

Service Area
As well as enhancing the various businesses and development of thriving communities that we provide in the areas alongside ourrailway lines, we are utilizing the expertise and facets of community development we have accumulated doing so to areas awayfrom our lines, both inside and outside Japan. By doing so, we aim to achieve sustainable growth.

Kansai (Umeda and line-side areas)
Making our line-side communities
the absolute best among the Kansai networks

Myokenguchi

Nissei-chuoCentered around our eﬀorts in Osaka-Umeda, we are goingec
Nose El
Railwayfurther with our development of communities, providing myriad
value in the form of safe, comfortable urban lifestyles andtricexperiences that stimulate dreams and emotions.

Osaka
Prefecture

Note: Station names in blue are those found in the top twenty Most Desirable Towns
to Live In (Kansai region), an investigation conducted by MAJOR 7 (Sumitomo
Realty & Development and six other companies) on October 6, 2022.

HankyuMinoh Line
Minoh

Kawanishi-noseguchi

Kita-senri

Takarazuka Grand Theater

HankyuImazu
LineHankyu Koyo Line
e El

ectr

Hankyu Kobe Line

ic R

ailw

o Sh

y

San

n

nse
inka

Shukugawa

Ashiyagawa

Imazu

AshiyaKobe Rapid Transit
Railway
Shin-Kobe

Hanshin Koshien
Stadium

Kobesannomiya

Motomachi

Imazu
Koshien
Mukogawa

Daimotsu

Mukogawadanchi-Mae

Hanshin
Mukogawa
Line

Esaka

Shin-Osaka
Juso

Awaji

Tenjimbashisuji
6-chome

Osaka-Umeda
Fukushima

Hanshin Namba Line
Osaka-Namba

c

Osaka
Metro

Hanshin
Main Line

Nishidai

Kobe Airport

Osaka Bay

Takarazuka, and Kyoto. Hanshin Electric Railway is an operator

Osaka-Umeda

Metro

Hankyu Corporationʼs railway lines link Osaka-Umeda with Kobe,

Os a k arictEleo Li n e
y
n
Sa
in
Ma

Tsukaguchi
Nishinomiya-kitaguchi

Amagasaki

Kobe-Sannomiya
ShinkaichiHankyuTakarazuka
Line

KoyoenOkamotoMikageay

Toyonaka

Itami

Osaka
Metro

Kob

HankyuItami Line

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

Hyogo
Prefecture

Osaka
International
Airport(Itami Airport)TSh ok
in aidka onsen

Takarazukawith railway lines that directly link Kobe with Osakaʼs major
northern and southern terminals, which are Osaka-Umeda andOsaka-Namba, respectively.
These operations form a network that acts as a type of majorsociety-supporting infrastructure in the Kansai area.
HankyuCorporation

143.6 km

HanshinElectric Railway

48.9 km

Kobe Line 46.9 km(Kobe Line, Imazu Line,
Itami Line, Koyo Line)

Kyoto Line 65.4 km(Kyoto Line, Senri Line,
Arashiyama Line)

Hanshin Line

Takarazuka Line 28.5 km(Takarazuka Line,
Minoh Line)

Kobe Rapid
2.8 kmTransit Railway Line

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

Kobe Rapid
5.0 kmTransit Railway Line

*See page 52 for the annual number of passengers carried.

Kansai International Airport

9

Hankyu Hanshin Holdings Integrated Report 2022

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

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate DataN

Arashiyama
Kyoto-kawaramachi

Kyoto
KatsuraHankyuArashiyama Line

Kyoto
PrefectureNon-service areas (Tokyo metropolitan area and overseas)
HankyuKyoto LineCreating richer lifestyles beyond our railway lines
We are expanding the type of thriving community development and business models that wehave created along our lines to the Tokyo metropolitan area and overseas, particularly in the
ASEAN region.

Initiatives in Tokyo

Takatsuki-shi

In the Tokyo metropolitan area,
we are focusing our energies
on ﬂow businesses, such as
businesses with short-term-return
RUSSIAsales.
(ﬁx-and-ﬂip) and residential

Furthermore, to bring about

Hotel Grand Palace Site
Eﬀective Use Development

our Long-Term Vision, we are
steadily pressing ahead with real

KAZAKHSTAN

estatedevelopment

projects

Tokyo Takarazuka Theater(In September 2021, we signed a basic
understanding with relevant partners
toward the eﬀective use of
the site where
Shinjuku-ku
the hotel once stood.)
Chiyoda-ku

Dai-ichi Hotel TokyoPILOT Hankyu
Hanshin Green
Building
Chuo-ku(Completed in
February 2019)

Shibuya-ku

H-Cube Minamiaoyama

Minato-ku(Sold in December 2021)

Ulan Bator
currently underway,
and looking

into MONGOLIA
how we can incorporate

Alma-Ata
Bishkek
KYRGYZSTAN

hotelsandentertainment

community development.

TAJIKISTAN

Yaesu 2 Naka
RedevelopmentinBeijing

NORTH
KOREA
P´yongyang(Scheduled to becompleted in
FY2029)

Seoul
SOUTH
KOREA

Hankyu Hanshin
Ginza Building

Tokyo
JAPAN

(Completed in
March 2020)

CHINA

Kintetsu
Nara Line
NEPAL

Real estate business development overseas

Kathmandu

Initiatives in the ASEAN region

We have concentrated on our residential sales

Thailandbusiness in the ASEAN region in particular, but(condominiums,
houses, andtownhouses*)

The Philippines(houses andtownhouses*)

going forward we will do more: working on ourreal estate business and short-term-return(ﬁx-and-ﬂip) business to quickly expand andgrow the scale of our earnings and proﬁts in
our real estate business overseas.

Malaysia(condominiums)

Vietnam(condominiums, houses,
townhouses,* and logistics facilities)

Indonesia(real estate leasing,houses, townhouses,*condominiums, andlogistics facilities)

Total unit sales overseas(including those of business partners) (As of September 1, 2022)

Overseas markets

Projects

Total units

Thailand30

Approx. 24,820

Vietnam6

Approx. 13,990

The Philippines

5

Approx. 4,340

Indonesia

3

Approx. 3,020

Malaysia

1

Approx. 850

45

Approx. 47,020

Total

Singapore(logistics facilities)*Terraced housing

Hankyu Hanshin Holdings Integrated Report 2022

10

Profile

Financial Highlights
Key Financial Indicators (Graphs)
Revenues from operations

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

800

760.3

791.4

105.2

762,7

746.2

600

568.9

400

14.5

13.8

80

（%）
21

114.9
95.2

14

12.5

40

7

39.2
5.3

200
0

2.1
0.4

0
2018

2019

2020

2021

2022

(FY)

2018
Operating income

2019

2020

0

2021

2022

(FY)

Operating income margin (right axis)

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

150

160.8

171.4

60

154.1

66.4

40

2020

2021

21.4
2.5

2022

(FY)

3
0
-3

-4.1

-40
2019

6

6.1

7.6

-20

0
2018

9

54.9

0

60.3

50

8.2

20

100.7

100

65.5

（%）
12

2018

2019

2020

-6

-36.7

2021

Net income (loss) attributable to owners of the parent

2022

(FY)

ROE (right axis)

Note: ROE = net income attributable to owners of the parent / equity(average of period-start and period-end totals)

Total assets and ROA

Interest-bearing debt, D/E ratio, and interest-bearing debt/EBITDA ratio(¥ trillion)
3

2.40

2

2.47

4.4

2.62

2.49

2.72

（%）
6

(¥ billion)
1,200

4

900

2

600

0

300

-2

0

3.6

4.5

1
1,4
0

-0.3
2018

Total assets

2019

2020

2021

2022

(FY)

ROA (right axis)(¥ billion)
150

135.8

100

126.0

123.1
81.8

47.5

5.4

5.1

5.9

1.0

1.0

1.0

2018
D/E ratio (right axis)

2019

2020

-32.5

-5.4
-88.4

-116.220182019-102.2-128.5-150
2020

Net cash provided by operating activities-134.7
2021

5
1.2
2021

1.3
2022

0
(FY)

Interest-bearing debt/EBITDA ratio (right axis)

(¥)
100

20

80
10.0

10

-14.6

5

-96.4

9.8

40

60

4.3
40

9.9

9.9

2018

2019

50

50

50

(FY)

12.2

12.1

20

2020

2021

2022

(FY)

0

Acquired treasury stock

Total annual dividend

Annual dividend per share (right axis)

Note: The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and other standards have been applied from the beginning of fiscal 2022.
The key management indicators for fiscal 2022 presented here have been calculated to reflect these changes.

Hankyu Hanshin Holdings Integrated Report 2022

40

12.2

0
2022

Net cash used in investing activities

Free cash flow

11

10(¥ billion)
25

15

9.9

0

-100

10.9

15

Returns to shareholders

Cash flows

-50

877.1

1,096.0
1,063.0
17.6

Interest-bearing debt

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

50

866.8

903.5

(Times)20

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Non-Financial Highlights
Environmental Factors

CO₂ emissions produced by Hankyu Corporation and Hanshin
Electric Railway during railway operations/energy consumption

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

616,365542,707434,932

400,000
200,000

316,491

Urban transportation

370,131

298,536

283,045

253,116

2019

2020

2021

Other

600,000

210,000

393,821 400,000

70,00000252,495
2022(FY)

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

CO₂ emissions for fiscal 2022 totaled 393,821 t-CO₂, up 6.4% year on year but
down 36.1% from fiscal 2014 levels. Energy consumption on a crude oilconversion basis decreased 0.2% to 252,495 kl.

Social Factors

8

10
5
0

13.1

1.4
5.8

Hankyu Hanshin

2018

14.1

14.4 0.7
4.8

4.5
Hankyu Hanshin

2019

Hankyu Hanshin

Safety-related capital investment2020

12.6 0.6

12.2

2021

1.7

497,128

2014

2019

2020

2021

490,695 300,000
0
2022

(FY)

Hanshin Electric Railway

44.0

45.3

47.8

Hankyu Hanshin

2022

（%）
50

44.5
36.8

4.0

4.5

4.5

4.7

5.1

40
30
20
10

2

4.8

3.5
Hankyu Hanshin

519,546

6

6.9

4
2.3

528,237

600,000(Target: Hankyu Hanshin Holdings and its six major companies*)

20
6.4

566,706

In fiscal 2022, CO₂ emissions associated with railway operation business energy
consumption by Hankyu Corporation and Hanshin Electric Railway totaled
168,426 t-CO₂, up 6.9% year on year but down 37.4% from fiscal 2014 levels.
Energy consumption totaled 490,695 MWh, down 1.3% year on year.

（%）
10

4.7

157,523

Energy consumption (right axis)(¥ billion)25

4.3

900,000
168,426

Percentage of women in management positions and women among new hires

Capital investment in railway operation business

4.7

220,803

Hankyu Corporation

International transportation

Note: Business-specific data has been calculated based on the core business structure inplace at the end of fiscal 2022.

15

（MWh）
1,200,000

269,185

140,000

200,000

Entertainment

Real estate

Information and communication technology
Hotel（t-CO2）280,000

173,528

0
2014

（kl）
800,000

0

0
2018

(FY)

2019

2020

2021

2022

(FY)

Percentage of women in management positions

Other capital investment

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

As a railway operator, the Group provides a form of public infrastructure. We
therefore make giving priority to the safety of our customers a fundamental policyof management, and conduct ongoing safety-related capital investments in ourrailway operation business accordingly. Safety-related capital investments in fiscal
2022 totaled ¥12.2 billion at Hankyu Corporation and ¥4.8 billion at Hanshin
Electric Railway. These investments were primarily used for the construction of
new trains and renovation of existing ones, as well as for installing platform screen
doors, further improving stations, and seismically reinforcing elevated tracks.

Percentage of women among new hires (right axis)*Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel
International, Hankyu Hanshin Express, and Hankyu Hanshin Hotels

Hankyu Hanshin Holdings and its six major companies are actively continuing tohire female employees and also pursuing fair working environments where
employees are able to fulfill their roles to the best of their abilities, regardless ofgender, by supporting them by providing diverse career experiences and helping
them to balance their work and private lives. In fiscal 2022, the percentage ofwomen in management positions was 5.1% and females made up 36.8% of newhires.

Governance Factors
Rate of attendance of outside officers at meetings of the Boardof Directors and Audit & Supervisory Committee

Percentage of outside directors
（%）
60

（%）

100
45.5

40

20

45.5

41.7

33.3

80

92.9
83.3

100.0

100.0

98.0

97.8

80.0

60

22.2

Outside directors, the Board of Directors
Outside directors, the Audit & Supervisory Committee

0

0
2018

2019

2020

2021

2022 (As of theconclusion of
the General
Meeting of
Shareholders
for each year)

2018

2019

2020

2021

2022

(FY)

Note: With the approval obtained at the Ordinary General Meeting of Shareholders heldin June 2020, Hankyu Hanshin Holdings became a company with an audit andsupervisory committee.

Hankyu Hanshin Holdings Integrated Report 2022

12

01

Creating
Real Value:
Our Story
CONTENTS
15

Value Creation Process

17

Message from the Chairman

19

Message from the President

22Long-Term Vision: Toward 2040

33
37

13

Hankyu Hanshin Holdings Integrated Report 2022

25

Initiatives Based on the Strategiesof the Long-Term Vision31

Promotion of the Hankyu Hanshin
DX ProjectMedium-Term Management Plan
Special Feature ①

Human Capital̶ Empowering Individuals

Osaka-Umeda area

Hankyu Hanshin Holdings Integrated Report 2022

14

Creating Real Value: Our Story

Value Creation Process (Overall Long-Term Vision)
By working toward achieving our Long-Term Vision, we will bring the Group together and push forward with reforms, while also further enhancing the appeal of ouroperational area and the products and services̶the content̶that we oﬀer. Moreover, we will expand our business ﬁelds, pursue ﬁnancial stability, and ensure that astyle of management that is more conscious of capital costs takes hold. By doing so, we will aim to be a corporate group that can grow alongside the Kansai region.

Dynamism of external partners

Accumulated

Tangible andintangible
management
resources

Long-Term Vision: Toward 2040 p22
Strategies for achieving the future vision

Manufactured
capitalStrategy

Extensive assets thatcan create stablerevenue❶ Make our line-side communities the absolute(core strategy)

Social andrelationship capital

best among the Kansai networks

StrategyServices based ontrust and brandstrength

Application(incl. digitaltechnologies)

Strategy❷ Make our content as compelling as possible

Strategy❹ value-added services

Intellectual capital

Expertise and brandpower accumulated
over more than 100
years of history

Expand the coverage of our❸ line-side business model

Increase market share by providing highPromotion of the Hankyu Hanshin DX Project p31

Human capital

Contribute to SDGs and 2050 carbon neutrality goal p45

Diverse workforce
with the courage to
try new things

Strengthening cooperation with external partners

See page 37

Financial capital

Pursuit of ﬁnancial stability

Financial policy

Stable ﬁnancial
foundation

Bringing the Group together to promote reforms

Natural capital

Sustainability Declaration p2

Advantageous
operational area
environment

Group Management Philosophy p1
JCSI*

Population
（%）
107.0

Hankyu and Hanshin line-side area

106.0

Kansai

105.0

Population trends (1991 = 100)

Industry

Company/
brand

FY2019surveySuburbanrailway

HankyuCorporation(out of 23)

Entertainment

Takarazuka
Revue(out of 6)

FY2020surveyFY2021surveyFY2022survey

104.0
103.0
102.0
101.0

1st

1st

(out of 23)

1st(out of 23)

1st(out of 18)

100.0
99.0
98.0
97.0

91

19

95

19

00

20

05

20

10

20

15

20

21

20

Sources: Chiiki Keizai Soran (Local Economy Directory), published by Toyo Keizai and
the Ministry of Internal Affairs and Communications Annual Report on
Internal Migration in Japan Derived from the Basic Resident Registration (asof January 1, 2022)

15

Hankyu Hanshin Holdings Integrated Report 2022

1st

2nd

(out of 6)

Canceled

1st(out of 5)*Japanese Customer Satisfaction Index
This survey is Japan s largest survey of customer satisfaction and is conducted by
the Japan Productivity Center s Service Productivity & Innovation for Growth. The
survey uses statistical methods to analyze answers from more than 120,000
respondents to evaluate companies and brands.

Creating Real Value:
Our Story

ProfileEnhancing line-side areas and expanding ﬁelds

p33

Experiences that
stimulate dreams
and excitement
Advanced businesssupportEstablishing a capital-cost-aware management style

Improved customer satisfaction

Medium-Term Management Plan
(FY2023‒2026)

Services we provide (value)

Safe, comfortableurban lifestyles

Creating Real Value:
The Foundations

Stable returns

Financial Section andCorporate Data

Contributing
to asustainable
society

Sustainable improvements to corporate value

SloganCreating Real Value:
The Processes

Contributing to andgiving back to
stakeholders
Customers
Communities

Partners

Employees

Creditors

Next
generation Shareholders

Regional growth

Contributing to the
SDGs/carbon
neutrality by 2050

(via the Long-Term Vision)

Proﬁtability

OperatingincomeFinancialsoundness

Interest-bearingdebt/EBITDA
ratio

Capitaleﬃciency

ROE¥130.0 billion
plus something
extra
Between 5 and
67% range in themedium to longterm

Non-ﬁnancial KPI targets

Financial KPI targets

Management targets for FY2031 (Financial and non-ﬁnancial KPIs)
Rate of CO₂ emissions
cuts: 46％ down from
FY2014 level
Zero culpable
incidents in ourrailway operation
business

Continued improvement in
employee satisfaction
Percentage of women in
management positions: Around 10%
Percentage of women among newhires: Always more than 30%

Hankyu Hanshin Holdings Integrated Report 2022

16

Creating Real Value: Our Story

Message from the
ChairmanKazuo Sumi
Chairman and Representative Director,
Group Chief Executive Officer

As we grow together with our local communities in the Kansai region, ourcorporate group is adopting a new Long-Term Vision that demonstrates our
resolve to support the emergence of a society committed to sustainability.
Updating Our Long-Term Vision in Response to

At the moment, the Kansai region and Osaka-Umeda are

Rapid Changes in the Socioeconomic Environment

benefitting from a wealth of opportunities for growth well into the

In May 2020, the Hankyu Hanshin Holdings Group adopted its

announced as a collaboration between the public and private

Sustainability

future. In March 2022, the Global Financial City Osaka Strategy wasGroupsectors. Further, in April 2022, Osaka City was designated aManagement Philosophy of delivering safety and comfort as wellnational Super City based on the National Strategic Special Zone

as dreams and excitement to create customer satisfaction andsystem. Looking further ahead, the Osaka-Kansai Expo is scheduled

contributing to society. Since then, we have been actively

to take place in 2025, while the Osaka IR Initiative is planned topromoting environmental, social, and corporate governance (ESG)

open in 2029. The region has a great opportunity to demonstrate

initiatives, which serve as the foundation of our dedication to

its potential as an international city.

Declaration,

which

springsfromthesustainable growth. In order to respond appropriately to rapid

In terms of transportation infrastructure development, plans arechanges in the socioeconomic and business environments andunder way for construction of the Naniwasuji Line connecting

further enhance our corporate value, we have updated the Hankyu

Kansai International Airport with Osaka-Umeda Station and Shin-

Hanshin Holdings Long-Term Vision 2025, which we formulated

Osaka Station. Likewise, our Group is studying plans for theand adopted in fiscal 2018. Moreover, in May of this year we

Naniwasuji Connection Line and Shin-Osaka Connection Line. Onceannounced another initiative, Long-Term Vision: Toward 2040.

these important links have been completed, access to OsakaUmeda from air and land gateways will be dramatically improved.

Growing as a Corporate Group Committed toThriving Alongside the Kansai Region

The details of our new Long-Term Vision will be introduced in a

become a central location for the development of new industries

separate article, which sets our four strategies to realize thethat will lead to the resolution of societal issues, such as theobjectives of this Group vision. Our primary strategy is to make ourdevelopment of a society with a healthy life expectancy in whichline-side communities the absolute best among the Kansai

people can live a life of ease through collaboration among industry,

networks. I believe the key to achieving this strategy is to firstgovernment, and academia. Expectations are high that the Osaka-revitalize the Kansai region as a whole. Clearly, the Group’s mostUmeda area will take the lead in compiling intelligence from Japan

important business hub, the Umeda district of Osaka, will play a

and abroad to address such pressing societal issues.

leading role in this initiative.

17

As for the Super City Initiative of Osaka Prefecture and Osaka
City, it is notable that the Umekita Phase II District was selected asHankyu Hanshin Holdings Integrated Report 2022

one of the priorities. The Umekita Phase II District is expected toProfile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Against this backdrop, Osaka-Umeda is likely to grow as part ofCreating Real Value:
The Foundations

Financial Section andCorporate Data

Empowering Individuals

an international city in the future. In light of these developments,

We recognize that it is essential to continuously increase theour Group will play a leading role in helping Osaka-Umeda emerge

satisfaction of our employees, who are responsible for all theas an internationally competitive urban center by making full use ofwork we accomplish, in order to increase customer satisfaction.

our achievements to date as well as our expertise in urban

Our Group has therefore identified the active participation of eachdevelopment projects.

individual as an essential theme in our Sustainability Declaration.
We are now promoting a variety of initiatives toward this end.

By adopting various measures in accord with the strategies of our

In our recently updated Long-Term Vision, we adopted therecently updated Long-Term Vision as well as the initiatives

following three important non-financial indicators (targets fordescribed above, our Group will continue to increase its corporate

fiscal 2031): continued improvement in employee satisfaction;

value as we aim to become a corporate enterprise that thrives

about 10% of women in management positions; and maintaining

together with our local region of Kansai.

women among new hires at more than 30%. We will strive toimprove job satisfaction among our employees and improve theAddressing Societal Issues as We Further

working environment while maintaining an awareness of the needManagement Modelculture in which each individual can fully develop and demonstrate

As mentioned above, our Group has been accelerating its ESG

promoting health and productivity management on an ongoing

initiatives since we first adopted our Sustainability Declaration.

basis, we will continue to enhance our human capital by promoting

Looking ahead to fiscal 2031—which is the target year of thehuman resources strategies that are consistent with our updated

management objectives set out in our Long-Term Vision as well asLong-Term Vision.

Accelerate Our Transition to a Sustainablefor greater diversity and inclusion. We will foster a corporate
his or her unique individuality and abilities. In addition to actively

that of the UN’s sustainable development goals (SDGs)—we haveestablished the non-financial indicators shown in the table below,
and we are working as a team to achieve them.

Rate of CO₂ emissions cuts:
46％ down from FY2014 level

Zero culpable incidents in ourrailway operation businessContinued improvement in
employee satisfaction
Percentage of women in
management positions:
Around 10%
Percentage of women among
new hires:
Always more than 30%

Demonstrating a Commitment to Excellence in Corporate
GovernanceIn order to further strengthen our corporate governance, weestablished an Audit and Supervisory Committee in June 2020. In
addition, we appointed an independent outside director as thechair of our Corporate Governance Committee and Compensation
Committee. In addition, two new independent outside directors
were appointed in June of this year.
To date, we have appointed five independent outside directors,

Promoting Environmental Conservation Initiatives

three of whom are female. We intend to further improve

Among the above indicators, in order to achieve the 1.5°C

management

reduction scenario that is the target of the Paris Agreement, insupervisory functions by utilizing their abundant experience andMay of this year we increased the Group’s CO₂ emissions

specialized knowledge to ensure more lively discussions among

reduction target for fiscal 2031 from 26% to 46% and adopted a

the Board of Directors.

transparency

andenhancemonitoringandnew target of achieving net zero (carbon neutrality) by fiscal 2051.
In order to attain this objective, we will begin by emphasizing a

As I have described above, our Group is actively promoting ESG

reduction in our energy consumption and steadily implementing

initiatives. In recognition of these efforts, we have been named toenergy-efficiency efforts while assessing financial soundness andthe MSCI Japan ESG Select Leaders Index* for the fifth consecutive

efficiency of investments. While monitoring trends in technologicalyear and have obtained a AAA rating, the highest of MSCI’s ESG

innovation and business profitability, we will consider energy

ratings, which is the basis for the addition of stocks to this index.

generation initiatives such as introducing renewable power
generation facilities and the like.

Promoting ESG initiatives is a natural responsibility that we

Furthermore, in response to the Task Force on Climate-relatedshould take on as a company. With this in mind, our Group will

Financial Disclosures (TCFD), for which we announced ourcontinue to address various societal issues and contribute to the

support in May 2021, we have identified risks and opportunities inemergence of a society committed to sustainability by further

the railway operation and real estate businesses, conducted

accelerating our efforts to practice sustainable management.

scenario analyses, and estimated financial impacts. Going forward,
we will use these results to gradually implement our response to
climate change issues, including efforts to enhance measures to*An index comprising companies with a relatively high commitment to ESG
initiatives within their respective industries

reduce financial impacts.
Hankyu Hanshin Holdings Integrated Report 2022

18

Creating Real Value: Our Story

Message from the
President

Takehiro Sugiyama
President and Representative Director

We will collaborate as a unified group to effect an early recovery in ourbusiness performance and realize our Long-Term Vision.
In

recentyears,

thesocioeconomic

andbusiness

condominium,and

information

servicesbusinesses.

In

environments in which our Group operates have been

addition, the Umeda 1-1 Project—which can be consideredchanging rapidly, as evidenced by rapid social changes

a symbol of the integration of Hankyu Holdings and Hanshin

triggered by the COVID-19 pandemic (such as shifting

Electric Railway—was completed in February of this year,

behavior, a transition in our living patterns, and acceleration

and we succeeded in achieving impressive results inof the digital transformation) and heightened awareness ofimproving the attractiveness of our line-side areas.

the UN’s sustainable development goals (SDGs) and the

However, with the outbreak of the COVID-19 pandemic,

target of achieving carbon neutrality by 2050. In 2017, about

the assumed business environment on which the vision wasa decade years after the corporate merger of Hankyu

premised shifted significantly. Unfortunately, this made it

Holdings and Hanshin Electric Railway, the Hankyu Hanshin

difficult to achieve the operating income target of 110 billion

Group formulated and announced the Hankyu Hanshin

yen for fiscal 2022, which had been set as an interim target.

Holdings Group Long-Term Vision 2025. In order to respond
appropriately

to

the

aforementioned

changesinthecorporate environment and to maintain its commitment to

Formulating an Update to Our Long-Term Visioncontinuously improving corporate value, the Hankyu Hanshin

In addition to the changes in the business environment

Group recently updated this vision and introduced Long-

mentioned above, additional medium- and long-term market

Term Vision: Toward 2040.

shifts (such as population decline, soaring construction costs,

The details of this new Long-Term vision are presented

delayed recovery of inbound tourism) can be expected to

beginning on page 22, but I would like to discuss thecontinue affecting our Group to some extent. However, webackground to this update and the key points of our strategy

believe that an early recovery is attainable if we respondfor achieving its targets.

appropriately

while

leveraging

thestrengths

of

each

individual business. As the value of experience-based

Implementing a Review of Long-Term Vision 2025

attractions and content is expected to increase further in theFirst of all, Long-Term Vision 2025 had generally progressed

our Group to maintain our growth trend. This expectation

as expected through our promotion of measures in

has formed the foundation for our recent update to our Long-

accordance with the vision before the outbreak of the

Term Vision.

COVID-19 pandemic. Specifically, our profits grew steadily
from our flow-oriented businesses such as the entertainment,

19

Hankyu Hanshin Holdings Integrated Report 2022

future, we are confident that ample opportunities exist forCreating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

possible. One of the strengths of our Group is our ability to

Our Long-Term Vision

Strategy❶❷

Financial Section andCorporate Data

The second strategy is to make our content as compelling as

Key Strategies for Achieving the Goals ofStrategy

Creating Real Value:
The Foundations

offer attractive content that other companies cannot match,

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

such as the Hanshin Tigers professional baseball team andthe Takarazuka Revue. However, as mentioned above, thevalue of such real experiences and content will increase in
the years ahead, likely beyond previous expectations. This
will enable us to offer travel-oriented products and services

Make our content ascompelling as possiblethat had not previously been considered as “content.” We
intend to further enhance their appeal. In addition, by making
profitable use of digital technologies, we are committed toStrategy

Strategyfurther increasing the satisfaction of existing customers as we

Expand the coverage of our❸ line-side business model❹

develop new customers.
The third strategy is to expand the coverage of our line-side

Increase market share byproviding high value-added
servicesbusiness model. Large-scale projects along railway line-sides
cannot be expected to contribute to profits until the latter
half of the 2030s, so in order to grow steadily in the meantime,

The cornerstone of our four key strategies for achieving ourit is essential that we constantly increase profits in eachLong-Term Vision is the first: To make our line-sidebusiness. Against this backdrop, our Group intends to focus

communities the absolute best among the Kansai networks.

on overseas expansion of the real estate business in particular.

This strategy was also set forth in our previous Long-Term

Specifically, in ASEAN and other areas where economic

thegrowth is expected, we plan to expand our business to afoundation of our Group’s business, and enhancing thecertain scale through our housing sales business and short-

attractiveness of these line-sides is essential to the growth ofterm-return (fix-and-flip) business for revenue-generating real

our entire Group.

estate. We plan to utilize this as a springboard to expanding

Vision,becauseourrailwayline-sides

represent

Of particular importance is the Osaka-Umeda area. As
stated in our recently formulated Umeda Vision, we aim to

the scale of our leasing business by making full use of the realestate information network we have built.

become a hub for international exchange by providing thefunctions that will serve as a base for the development of

The fourth strategy is to increase market share by providing

new industries as well as a magnet for international tourism.

high value-added services. This addresses our information

In order to achieve this objective, our Group will continue

services and international transportation businesses, which

to renovate the assets we own in this area, including therepresent our B-to-B businesses. For these businesses, welarge-scale Shibata 1 Project, to enhance the charm of thiswill emphasize the provision of high-quality, competitive

urban space.

products and services; utilize M&A and other means to

In addition, we will make Osaka-Umeda even more
appealing by developing places and systems that spark

expand our scale and market share; and work to support ourGroup’s business portfolio.

innovation by attracting universities and startups. We will
also focus on creating comfortable places and welcoming
pedestrian-friendly urban neighborhoods as a means ofimproving mobility in the area.

Financial Policy for Our Long-Term Vision
The financial policy of our new Long-Term Vision is outlined

As these efforts progress, the area will attract a large

on page 24. In addition to the “maintaining financial health,”

number of tourists and business visitors from many different

a goal we have long advocated, this new vision calls for theplaces in Japan and abroad, which will serve to revitalize theestablishment of “keeping capital costs in mind.” From now

entire area along the Group’s railway side-lines. I am therefore

on, we aim to improve our capital efficiency in order to meet

confident that, in addition to increasing the influx of visitors, a

the expectations of the markets we serve, as well as those of

population of permanent residents will increase along theour stakeholders, to the greatest extent possible.

Group’s railway line-sides. This population may well continue

Specifically, in each of our businesses, we will operate withto increase even as the general population of Japan contracts

an ever-greater awareness of capital costs while utilizingin the future.

return on invested capital (ROIC) and other metrics to that
end. Moreover, we will organize and sell low-yield businesses

Hankyu Hanshin Holdings Integrated Report 2022

20

Creating Real Value: Our Story

and assets as necessary to minimize the risk of developing a

digital transformation is also essential, and the entire Hankyu

bloated balance sheet.
We will maintain an appropriate capital structure (debt-toequity

ratio)

bymaintaining

Accelerating the introduction of initiatives related to thestableandHanshin DX Project will be implemented at an early stage.

appropriate

Each division will work at a high pitch to increase profits andshareholder returns. Through these efforts, we will aim for a

improve productivity by utilizing digital marketing, robots, thereturn on equity (ROE) in the 7% range over the medium andInternet of things, and other innovations in keeping with thelong terms.

characteristics of each particular business.

The Key Points of Our Medium-Term Management Plan

Shareholder Returns

In conjunction with the updating of our Long-Term Vision, ourFinally, our Group has identified the total payout ratio as anGroup has formulated a Medium-Term Management Plan

indicator of shareholder returns. Our basic policy is to ensure(fiscal 2023–2026), which entails a specific action plan.

stable dividends and share buybacks by setting the total

The details of the plan are presented beginning on page 33,
but the most important priority measure in the plan ispayout

ratio

at

30%

while

emphasizing

thefurtherstrengthening of our management foundation.

“strengthening our earnings structure,” which we believe is a

Regarding the distribution of the dividend from surplus fornecessary and urgent initiative, especially in relation to thefiscal 2022, we decided to pay a stable dividend, with thebusinesses (urban transportation, hotel, and travel) that haveannual dividend set at 50 yen per share, thus maintaining theexperienced a significant decline in revenue due to the responsesame rate adopted for fiscal 2021. The annual dividend forto the COVID-19 pandemic. For example, since railway

fiscal 2023 is expected to remain at this rate.

transportation revenues are unlikely to return to pre-pandemic
levels even as COVID-19 eventually subsides, we will strive to

As our Group continues to focus on meeting theimprove revenues and expenditures as soon as possible byexpectations of all our stakeholders, we look forward yourrevising rail schedules based on passenger demand, improving

continued understanding and support in the years ahead.

the efficiency of our stations and other operations, andincreasing revenue by introducing paid seat services.

21

Hankyu Hanshin Holdings Integrated Report 2022

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Long-Term Vision

Long-Term Vision

Long-Term Vision: Toward 2040

Fundamental Approach to the Update
The new Long-Term Vision looks to the future, to the period between 2035 and 2040 when we expect to see the large-scale
projects we will be promoting—such as the Shibata 1 Project and the Naniwasuji Connection Line and Shin-Osaka Connection
Line—starting to contribute to profits. It outlines our ideal for our long-term future and sets the strategies, financial policies, andother measures to get there.
However, this period is still some way off, and so as well as announcing our image for growth in 2035 to 2040, we havepublished our management targets for fiscal 2031 as waymarks to clearly hammer out how we will accomplish sustainablegrowth toward 2040.

FY2023

FY2026

Medium-Term Management Plan

FY2031

Around 2035‒40

Large-scale projects andeﬀorts toward carbon
neutrality underway

Period in which we expect to see
full-scale contributions to proﬁt by ourlarge-scale projects, predicted to be aGroup milestoneLong-Term Vision: Toward 2040

Formulated to provide a long-term
direction that focuses on the late 2030s

Hankyu Hanshin Holdings Integrated Report 2022

22

Creating Real Value: Our Story

Long-Term Vision

Long-Term Vision: Toward 2040

Summary of the Long-Term Vision

Enhancing line-side areas and expanding ﬁelds

SloganLong-Term Vision overview

Strategy

Safe, comfortableurban lifestyles

Expand the coverage of our❸ line-side business model

Strategy❷ Make our content as compelling

Strategy❹ high value-added services

as possible

Increase market share by providing

Experiences that
stimulate dreams
and excitement
Advancedbusiness support

Promotion of the Hankyu Hanshin DX ProjectContribute to SDGs and 2050 carbon neutrality goal

Contributing to a sustainable
society

Make our line-side communities the absolute❶ best among the Kansai networks

Sustainable improvements
to corporate value

StrategyServices we provide (value)
Improved customer satisfaction

Strategies for achieving the future vision

The Groupʼs long-term ideal● We are going further with our development of communities, providing manifold value in the form of safe, comfortable urban

lifestyles and experiences that stimulate dreams and excitement. At the same time, by expanding the areas in which we dobusiness, we will raise customer satisfaction and enhance corporate value sustainably.

● We will meet the expectations of customers, regional communities, and other stakeholders, and contribute to bringing

about a more sustainable society.

Through these eﬀorts, we aim to be a corporate group that grows hand in hand with Kansai

Strategies to achieve our ideal (see page 25 onward for more details)
Strategy❶ (core strategy) Make our line-side communities the absolute best among the Kansai networks● Focus on making our line-side areas much more attractive by engaging in community building and actively leveraging digital

innovations with the aim of coping with the shrinking and aging population.

● Strengthen our line-side areas

connections with land transport links (Tokyo-Nagoya-Osaka) and global dynamism bypromoting the Naniwasuji Connection Line and Shin-Osaka Connection Line Project, and use new projects (e.g., theShibata 1 Project) to make Osaka-Umeda as a whole a world-class urban environment in line with the Umeda Vision(see page 26).

Urban Transportation, Real Estate, etc.

Strategy❷ Make our content as compelling as possible● Make our content more compelling while expanding our customer base and actively leveraging digital technologies

Entertainment and Travel
Strategy❸ Expand the coverage of our line-side business model● Expand our line-side business model (e.g., building abundant communities) beyond line-side areas by utilizing the know-how andachievements that we have accumulated through strategies ① and ②

Strategy

Real Estate and other businesses❹ Increase market share by providing high value-added services● Use our technologies and know-how to expand the value scope of our businesses● Provide high-quality, competitive services to increase our business scale and market share

Information and Communication Technology and International Transportation

In addition to pursuing these four strategies, we will strongly promote our eﬀorts to implement the Hankyu Hanshin DX Project and tocontribute to the achievement of the SDGs and the 2050 carbon neutrality goal.

23

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Financial and non-financial KPI targets for FY2031
In fiscal 2031, a waymark on the path to future growth and rapid progress, we will aim to achieve income growth (particularly inexisting businesses) and operating income of ¥130 billion, as well as taking on the challenge of getting something extra through efforts
such as the Hankyu Hanshin DX Project. Our management targets (for financial and non-financial KPIs) for fiscal 2031 are as follows.
Financial KPI targets
To be able to continue offering a stable supply of the products and services with a view to achieving a sustainable society and thedevelopment of the region, we will pursue financial stability and, in order to meet stakeholder’s expectations, we will establish amanagement style that is more aware of capital costs, and specifically aim to maintain and enhance capital efficiency.
(FY2031 target)

Stable base income results● By expanding revenue for each of our businesses, driving thorough cost reductions, strengthening

our proﬁtability structure, and working diligently to use digital technologies to expand ourrevenue base and raise productivity, we can record a certain standard of proﬁts.

Pursuing● We will also press ahead with thorough risk management for highly volatile businesses

such as overseas real estate.

ﬁnancial
stability

Maintenance of ﬁnancial soundness● As well as advancing initiatives aimed at business expansion̶including large-scale projects̶andmaking growth investments, we will control the interest-bearing debt balance while keeping thecurrent rating level in mind, and aim for an interest-bearing-debt/EBITDA ratio of between 5 and 6.

Operating income¥130.0 billion plus
something extra＊*Aim to go further throughthe DX Project, etc.

Interest-bearing-debt/
EBITDA ratio

Between 5 and 6

Maintenance and improvements to capital eﬃciency (to create returns that exceed capital costs)● In each business, we will remain conscious of capital costs and utilize ROIC* and other indicators,

Establishing a

as we aim to maintain and improve yield.

capital-cost-● Also, by carefully selecting new growth investments from the perspective of yield, we will

carefully move forward with accumulating stocks, reviewing the business situation, andwithdrawing from low-yield assets, and so prevent a bloated balance sheet.

aware
management● We will provide and continue to oﬀer stable, appropriate shareholder returns, and maintainstyle

a suitable debt/equity (D/E) ratio.

ROE

7% rangein the medium tolong term● Through these measures, we will aim for the ROE standard detailed on the right.

*Operating income/invested capital

Non-financial KPI targets
Rate of CO₂ emissions cuts: 46％ down from FY2014 level
Zero culpable incidents in our railway operation businessContinued improvement in employee satisfaction
Percentage of women in management positions: Around 10%
Percentage of women among new hires: Always more than 30%

Income growth toward 2040
Annual operating income prior to the pandemic was more than ¥100 billion, but in fiscal 2031 we aim to achieve income growth,particularly in existing businesses, for a total operating income of ¥130 billion, and are challenging ourselves to accomplish something
extra via the DX Project. Next, as each large-scale project is completed and opened in turn, they will start to contribute to profits, so
we believe they will help to further grow our income between 2035 and 2040.

Operating income (FY2031 target)

Aim for further proﬁt¥130.0 billion
plus something extra

growth 2035‒2040

Further promotion of
the DX Project, etc.

Something extra in the way ofgrowth via DX Project, etc.

¥130.0 billion

Underpinning of existing business with DX(greater eﬃciency, labor savings, etc.)

Completion and opening of large-scale projects¥130 billion,¥115.0 billion

Shibata 1 Project
Senri-Chuo Redevelopment● Naniwasuji Connection Line and Shin-Osaka Connection Line,etc.
●

particularly from existing
businesses●

Promotion of large-scale projects¥100.0 billion

FY2026

FY2031

Around 2035

Around 2040

Hankyu Hanshin Holdings Integrated Report 2022

24

Creating Real Value: Our Story

Initiatives Based on the Strategies of
the Long-Term Vision

Long-Term Vision

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

Promoting initiatives based on the Umeda Vision
By promoting large developments and consecutively renovating(or replacing) our assets, we will both enhance the appeal ofurban spaces and make progress with eﬀorts to create
international exchange sites.
North zone

South zone

Leasing building/East building

Hotel new Hankyu
Osaka

Ni Osa
sh ka
i-U M
m et
ed ro
a
St
a.

Hanshin
Osaka-Umeda Sta.

JR

Ki

ta

sh

in

ch

iS

Hankyu Sanban Gai
Shopping Center
Hankyu Terminal Bldg.

Osaka
Ume Metroda St
a.

JR Osaka Station

HankyuOsaka-umeda Sta.

LegendOs
Higa aka Metr
shi-U
o
med
a Sta
.

:
n
io on
at ti
St sta pen
ka d osa un to 3)
O gro d 02
R
J er ule g 2
nd ed rin
(U sch sp

Large developments inwhich the Group is
involved
Assets owned or
shared by the Group(incl. leased property)ta.

Umekita Phase II Development Project
Considering the philosophy and policyofcommunity

development

Artistʼs impression of the completed sitethat

Hankyu Hanshin Hotels haveintegrates green spaces with innovation,

created an up-scale hotel* on

we will establish spaces ﬁlled withthe 5th to 28th ﬂoors in thegreenery̶oﬃces, commercial facilities,

leasing building (east building)hotels, and city parks̶and innovative
facilities

that

help

to

createinnewindustries. Initial opening scheduled for25

Hankyu Hanshin Holdings Integrated Report 2022

south

zone.

It

is

half of ﬁscal 2025.

summer 2024; complete opening inﬁscal 2028.

thescheduled to open in the latter

Artistʼs impression of the completed site

*A hotel with a sense of luxury quite
diﬀerent from a standard business
hotel

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Shibata 1 Project

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Osaka Umeda Twin Towers South

Focused on the next generation, we will aim to replace(Umeda 1-1 Project)

the building for the Hotel new Hankyu Osaka/Hankyu
Terminal Building, make complete repairs to its Hankyu

We formed the Dai Hanshin Building̶home to a Hanshin

Sanban Gai underground area, strengthen the complexʼs

department store (Hanshin Umeda Main Store)̶and thefunctions as a station terminal, and develop the site as a

New Hankyu Building into one building, the Groupʼs ﬂagshipcombined-function facility that suits its role as the

Osaka Umeda Twin Towers South, for which all construction

gateway to the Osaka-Umeda area.

was completed in February 2022.

JR Osaka Station

Hankyu Terminal Bldg.
Hotel new Hankyu Osaka
Hankyu Sanban Gai Shopping Center
Hankyu Osaka-umeda Sta.

Umeda Vision
We have formulated the Umeda Vision as a concept to help us improve the value of our most important site, the Osaka-Umeda
area̶the biggest transport hub in western Japan. By raising the original value unique to the area, we aim to create urban
functions that will allow it to act as a base for the creation of new industries, but also one that can host international exchanges
as a place where people from around the world want to work and visit.
Details on the background to our creation of the Umeda Vision can be found on the following page.

How Osaka-Umeda
should be

Osaka-Umedaʼs unique value

The functions
createdAn international city that beats the competition

A place of co-creationthat produces newer
value

Functions to generate new industries
that will solve the worldʼs problems

A place that facilitatesencounters andinteraction

A space for new encounters andexperiences not available elsewhere

A dynamic cluster ofpeople and companies

The mechanisms to cultivate the urban
culture and values that give Umeda its appeal

Hub forcreating new
industries
International
tourism
destination

Where people around the world want to work or visit

International visitors(visiting for a variety ofreasons)

TargetInternational hub■ Our ideal for the Osaka-Umeda area

■ Six basic policies of the Umeda Vision
An international city with unique valuethat beats the competition

The basic value that will equip Umeda
for the new normal
Promoting the Umeda brand to the world

Basic Policy ①

Make Umeda a place of co-creation that produces newer value

Basic Policy ②

Make Umeda a place that facilitates encounters and interaction

Basic Policy ③

Make Umeda a dynamic cluster of people and companies

Basic Policy ④

Make Umeda a place that uses the latest digital technology to oﬀer new value

Basic Policy ⑤

Make Umeda a sustainable place

Basic Policy ⑥

Strategically organize marketing and communications to the world

Hankyu Hanshin Holdings Integrated Report 2022

26

Creating Real Value: Our Story

Initiatives Based on the Strategies of
the Long-Term Vision

Long-Term Vision

Opportunities for Growth in Kansai and Osaka-Umeda
Building an internationally competitive city:

Osaka-Umeda, at the center of Kansai,
will link the region with the world:

Channeling growth opportunities
With the upcoming Expo 2025 and the casino resort projectTransport networks/infrastructure will be strengthenedfor 2029, Kansai is garnering attention, including from

Plans are underway to develop new transport connections

overseas.

(Naniwasuji Line, Naniwasuji Connection Line, Shin-Osaka

Meanwhile, initiatives are underway to make Osaka City aConnection Line, and the underground JR Osaka Station

truly international city (for example, Osaka City has beenscheduled to enter service in spring 2023). If the plansdesignated as a National Strategic Special Zone for piloting

materialize, they would signiﬁcantly enhance air and landsuper-city initiatives, and a public-private partnership, withaccess to Osaka-Umeda, increasing the prospects forthe particular involvement of Osaka Prefecture and Osaka

Osaka-Umeda to channel the dynamism of the country andCity, has unveiled a strategy to make Osaka a global ﬁnancial

the world.

hub).
HankyuTakarazuka
Line

To Takarazuka

Umekitaʼs role in addressing social challenges:

Shin-Osaka

Osaka-Umeda as a trailblazer for addressing social challenges

Umekita Phase II as a critical location for the super-city
project. The locale will be a center for industry, academia,
and government collaboration in creating new industries thatwill

addresssocialandenvironmental

challenges

tosustainability, and a model area for pioneering data-driven
digital transformation.
If the project to make Osaka a global ﬁnancial hub
succeeds in enhancing the international proﬁle of Osaka andTokaidoShinkansen

Sanyo Shinkansen

The prefectural and municipal governments have chosen

Umekita
JR Osaka Station(underground station) Phase II
Development
KobeAreasannomiya
Hankyu Kobe LineHan
Ma shinin L
ine

Kyotokawaramachi②
Hankyu Kyoto Line

Juso

①

Hanshin Namba Line

Kansai, it will further increase the potential of the locale todraw in from around the world the talent and capital

Osaka-umeda

Naniwasuji Line

necessary to grow startups that will create the newindustries.

Osaka-Namba

Having attracted knowledge from around the world,

JR Osaka
Loop Line

JR Namba

Osaka-Umeda will be a trailblazer in addressing social andenvironmental challenges to sustainability.

Shin-Imamiya

Osaka-Umeda as an unmatched urban locale:Oﬀering something rarely seen elsewhere

Nankai Line (Airport Line)

Kansai International
AirportUnlike other urban locales in Japan, Osaka-Umeda features acompact cluster of oﬃce, retail, and entertainment functions,
all within walking distance.
If Osaka-Umeda is to be a place where people around theworld want to work or visit, it is necessary to leverage thisrare advantage to ensure that the area accommodates thediverse needs of the new normal.

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

② Shin-Osaka Connection LineThe line to connect Juso Station with Shin-Osaka
Station27

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Senri-Chuo Redevelopment
In the Senri-Chuo area̶one of our primary bases of operations̶
Toyonaka City and a council established by land owners in the
district are moving forward with studies into the future ofcommunity development there. In 2019, the council presented its
basic plan to vitalize the area, and, in 2022, Toyonaka City
announced that it is investigating how to redevelop the areaaround the station through a land readjustment project.
On the other hand, Senri Hankyu Hotel is set to close its doors
toward the end of ﬁscal 2026, as the building is deteriorating due
to aging. Therefore, in order to create a better community in the
Senri-Chuo area, we are studying how to make eﬀective use of
the hotel s site after it closes. In the future, we will press ahead
with the development of the site, while focusing on theoverarching redevelopment concept, progress, and other factors.
To Minoh-Kayano

Senri-Chuo multi-story car park 2

Senri-Chuo multi-story
car park 3y)We will extend the existing line 2.5 km north from the currentnwa
sio derten unEx ork(w

Extension of the Kita-Osaka Kyuko Lineend of the line at Senri-Chuo Station toward the city of Minoh
Osaka

Prefecture,andcreatetwonewstations:

Minoh-Semba-Handaimae Station and Minoh-Kayano Station.

Hankyu Senri-Chuo Bldg.
Senri-Chuo multi-story car park 1

The extension is scheduled to open at the end of ﬁscal 2024.

(Oﬃce building)

Kita-Osaka Kyuko Line
Senri-Chuo stationinSenri Hankyu
Department Store
Senri Selcy(Commercial facilities)

Senri Hankyu Hotel

Senri Asahi Hankyu Bldg.
(Oﬃce building)

Osaka Monorail
Senri-chuo station
To Umeda

Inside the tunneling shieldduring construction work

Minoh-Kayano Station underconstruction【Legend】

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

Promoting Accessibility
By making use of a government system that allows us to collect money for operating accessible railway stations, and other measures, weare able to install platform screen doors and provide mobility services that oﬀer greater safety and peace of mind.

Hanshin Kobe-sannomiya Station

Hanshin Osaka-Umeda Station

Multipurpose toilet at Hankyu Awaji Station

Actively Utilizing Digital and Other Cutting-Edge Technologies
We will improve our response to next-generation MaaS (Mobility as a Service) and the evolution of wireless communication technologies.
With our MaaS eﬀorts, we aim not only to raise the eﬃciency of mobility and make it seamless, we also want to stimulate demand.

Hankyu Hanshin Holdings Integrated Report 2022

28

Creating Real Value: Our Story

Initiatives Based on the Strategies of
the Long-Term Vision

Long-Term Vision

Strategy ❷Make our content as compelling as possible

Sports Business● Through businesses such as the Hanshin

Tigers Baseball Club and Hanshin Koshien
Stadium, we will create appealing content
that customers want.

● We will enhance services and content using

digital technologies.

Toratele streaming

Baseball simulation facility BE-STADIUM
KOSHIEN supported by STAND IN

Stage Business● As well as developing a framework that supports a stable supply of high-quality

performances, we will further enhance the content we oﬀer through these so that
Takarazuka Revue will continue to be loved by customers for another century.

● We will enhance services and content using digital technologies.

Takarazuka Revue live streaming

Travel Business● We will carve out a position as the unrivaled number one for guided group tours.
● Looking at the business from a medium- to long-term perspective, we will strive tocorner increasingly diverse travel models (by enhancing our lineup of productsthat delve into speciﬁc themes, etc.) and acquire new customer demographics.
We will also work to expand business outside travel, such as by providing support
services for local authorities.

● As well as strengthening our activities to recruit online, we will utilize digitaltechnologies to raise task productivity.

Travel on the Crystal Cruiser Sumire

Strategy ❹Increase market share by providing high value-added services

Information Services(Information and Communication Technology) Business● We will expand the scale of our business, use the technologies and expertise wepossess, and collaborate with partners outside the Group on technical and otherfronts to create new services.

● Additionally, we will promote and support DX within the Group and in our service

areas to help solve social issues inside and outside the Group.

International Transportation Business● As the global business environment is undergoing dramatic changes, we will moveahead with four strategies: accelerating the 1) switch to a balanced businessportfolio, 2) expansion of the business and boosting of competitiveness, 3) greateruse of a robust global governance framework, while also 4) tackling new ﬁelds for
growth.

29

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileStrategy ❸Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Expand the coverage of our line-side business model

Expanding the Real Estate Business in Areas Away from Our Lines Inside andOutside Japan● As well as accelerating our eﬀorts in the short-term-return (ﬁx-and-ﬂip) business, we will expand sales,

including of redevelopments and renovations.

Short-term-return (ﬁx-and-ﬂip) businessWe promote the development

Also centered on Tokyoof leasing condominiums for

metropolitan

investors, student dormitories,willetc., and aim to sell aroundshort-term-return (ﬁx-and-ﬂip)

Tokyo metropolitan area.

area,

we

promotebusiness for a variety of asset

ten buildings stably each year,with a particular focus on theactivelytypes, including commercial,

Leasing condominium
brand Geo ent

oﬃce, and distribution facilities.

H-Cube Minamiaoyama(Minato-ku, Tokyo)
Sold December 2021

Condominium renovation
business/Geo Ichibancho(Chiyoda-ku, Tokyo)
Completed March 2022

● In addition to the steady promotion of developments currently underway in Japan (Tokyo metropolitan area), we will look at how toincorporate hotel and entertainment functions in community development.

Yaesu 2 Naka Redevelopment

Hotel Grand Palace Site Eﬀective
Use Development

We are part of the redevelopment of a two-hectare site in
the Yaesu area in front of Tokyo Station, that will compriseWe

an ultra-high-rise, large-scale complex with a total ﬂoor area

collaboration with other in the industryof around 390,000 m². We are working in collaborationon the site of the Hotel Grand Palacewith others in the industry, and construction is scheduled to(Chiyoda-ku,

be completed in ﬁscal 2029.

operations in June 2021.

Artistʼs impression of the exterior

plan

to

open

Tokyo),

acomplex

which

in

ended

● We will use the expertise we have gained in the areas along our lines, and apply this to our business overseas, particularly in the

ASEAN region where sustainable growth is predicted to continue. We will work for external partners and expand the scale of ourbusiness in the areas of sales, short-term returns, and leasing, among others.

Overseas real estate business
Adding to the residential sales business that we have previously focused on in the

Even in the U.S.A., we have set up a

ASEAN region, we are now working on the real estate leasing business andlocal subsidiary and through it we haveshort-term-return (ﬁx-and-ﬂip) property business.

entered the U.S. real estate business by

In ﬁve countries̶Thailand, Vietnam, the Philippines, Indonesia, and Malaysia̶weacquiring leasing properties.

are taking part in residential sales projects covering approximately 47,000 units (asof September 2022).
In Indonesia, we have acquired a commercial-oﬃce-hotel complex, Plaza Indonesia
Complex, and a large-scale commercial facility, Central Park Mall. Through these andother projects we are entering the overseas real estate business in earnest.
Total unit sales
overseas

Approx. 47,020

Fox & Finch,
rental residencesin Seattle(including those of business partners) (As of September 1, 2022)

Overseas markets

Projects

Total units

Thailand30

Approx. 24,820

Vietnam6

Approx. 13,990

The Philippines

5

Approx. 4,340

Indonesia

3

Approx. 3,020

Malaysia

1

Approx. 850

Niche Mono
Ramkhamhaeng(Thailand),
condominiums for sale

Central Park Mall
(Indonesia),
large-scale commercial
facility

Park at 33rd, rental residences in Phoenix

Hankyu Hanshin Holdings Integrated Report 2022

30

Creating Real Value: Our Story

Long-Term Vision

Promotion of the Hankyu Hanshin DX ProjectThrough the four sets of actions that form the Hankyu Hanshin DX Project, we will take advantage of digital technologies toprovide customers with safe, comfortable lifestyles, and also use the diverse content we have to oﬀer to weave together thedigital and the real to further provide dreams and excitement drawn out of unchanging desires for real experiences and contact
and communication with others. By integrating these four sets of actions organically, we will achieve a virtuous cycle thatprovides greater convenience for customers, develops new products, and improves services.

Four sets of actions in the Hankyu Hanshin DX Project
Initiative 1

Initiative 2

Knowing our customers●

Introduce group ID (HH Cross ID)●

Integrate and analyze customer data●●

Initiative 3

Delivering the beneﬁts of digitaltechnology to our customers

Prepare:Free Wi-Fi and other digital infrastructure●

Digital Twin, metabase●

Streaming platforms

Enhance lineup of communication tools suited to newlifestyles (e.g., HH cross TOWNS)
Further improve communications by integrating digital
tools (e.g., apps) with existing media

Initiative 4 Enhancing our content●●

Communicating withour customers●●

Reorganize and expand content
Repackage experiences we oﬀer (e.g., travel, shopping)as new content
Work with partners to develop new content

These four sets of actions will be integrated organically to create a positive cycle for
improving customer convenience and developing new and better products and services.

Initiative 1

Knowing Our Customers

HH cross ID, a Group-wide ID, allows us toseamlessly integrate services and data
We have introduced a new Group identity, HH cross ID, which

Integration and analysis ofcustomer data using the latest
analytical methods

will cut across existing customer information from the various

In order to integrate and analyze customer

diﬀerent services that we oﬀer. With this system, customers will

data (attributes, what services they use, etc.), we established thebe able to seamlessly use a single ID for the whole range of

Data Analysis Lab in April 2021, through an industrial-academic

services.

collaboration with the University of Tokyo. The lab conducts

By integrating customer data from diﬀerent companies andanalysis using a variety of methods, including statistical analysis

businesses within the Group, we can gather and analyze the dataand state-of-the-art machine learning, and has ﬁnished analyzing

to accomplish personalized marketing and have diﬀerent

data on six million customers, and it does analysis to understandbusinesses refer customers to one another. This will result in

the current situation and identify problems (① below), and thenmore loyal customers but also in the data being used to develop

set targets for several Group businesses (②), and support the

new products and services, which will further improve customer

implementation and veriﬁcation of measures (③).

satisfaction. We will continue to integrate and link customer data

In the future, we will use HH cross IDs, carry forward analysis

between the Group s businesses, and further expand our

into customer data that has been integrated from across thecustomer base.

Group, and support the usage of data for a total of around 12
million customers.

Members:
approx.

260,000(As of September 1, 2022)
HH crossportal site
(Japanese only)

31

https://www.hhcross.hankyu-hanshin.jp/

Hankyu Hanshin Holdings Integrated Report 2022

Work process at Data Analysis Lab① Understanding thecurrent situation andidentifying problems② Target setting

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

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

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

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Initiative 2 Communicating with Our Customers
Strengthening ties with customers

To provide services to customers, we need to further deepen our ties to customers, and to that end, we will expand customer contact
points through apps and other digital tools and combine these with existing (real) media such as transport advertising to maximize theeﬀectiveness of adverts.
Through measures such as these, we will gather and analyze more customer data and use it for cross-selling* and further strengthen our
relationship with customers so that they use real services.
*Selling that encourages additional purchases and use through proposals for other products and services.

Initiative 3 Delivering the beneﬁts of digital technology to our customers
Free HH cross Wi-Fi service
We have developed a free Wi-Fi service for our stations, trains, andvarious facilities along our line-side areas. By expanding the areaeven further, we aim to further raise convenience for customers.
The various types of usage data we get from HH cross ID and other Wi-Fi services are
combined to analyze the places and situations where customers use our services, which
will help us to develop new products and services.

Metabase

Video streaming platforms

Using Group facilities and our communities,

We are investigating creating platforms in-house that can

we run events on metabase. In the future,stream our abundant content, and looking at expanding

we will expand these eﬀorts, and improve

the range of customers and bringing video streaming costs

our ability to attract customers for new

in-house. For streaming, we want to enhance content thatrevenue sources.

have not yet been grasped properly, such as travel.

ExamplesJM Umeda Music Fest

We have held the virtual music event̶for which the stage is a digital version of Osaka-Umeda̶twice, once in March and oncein July. The events involved a booth zone̶where companies and organizations were able to exhibit items, sell goods, and run
diﬀering events̶and a stage zone̶with live music performances courtesy of VTubers (online entertainers who use avatars) andother virtual artists̶and also included paid content that customers could participate in, such as live performances and virtual
meet-and-greets.

Initiative 4 Enhancing our content
Discovering and creating content and raising their appeal
In addition to enhancing our abundant content (the products and services that we oﬀer), we will reorganize and accumulate content thathas not yet been successfully categorized. Moreover, we will also look at how to take real experiences such as travel and shopping, anddiscover or enhance new packages, taking on the challenge of opening up such in collaboration with partners outside the Group.

Selected as a DX-certiﬁed operator
As a company that implements positive initiatives with regard to DX promotion
through strategies and frameworks, we were awarded Digital Transformation (DX)
Certiﬁcation by the Ministry of Economy, Trade and Industry.

Hankyu Hanshin Holdings Integrated Report 2022

32

Creating Real Value: Our Story

Medium-Term Management Plan
The Group has formulated the Medium-Term Management Plan as a concrete action plan to reflect medium-term initiatives that aid
the achievement of the updated Long-Term Vision. The plan covers a four-year period between fiscal 2023 and 2026, which has been
designated a period for returning to a pre-pandemic growth trajectory and laying the groundwork to achieve the goals of the vision.
Under the plan, which takes fiscal 2026 as the year by which to achieve its targets, the Group will press ahead steadily withmeasures that align with the direction of the Long-Term Vision. By doing so, the Group aims to attain an operating income standard
within striking distance of fiscal 2031 management targets.

FY2023

FY2026

FY2031

Around 2035 to 2040

Long-Term Vision: Toward 2040
Medium-Term Management Plan
Target ﬁscal year for
the Medium-Term
Management Plan

Waymarks on the pathto future growth andrapid progress

Long-term growth concept

Medium-Term Management Plan Priority Measures
We will steadily forge ahead with the following four priority measures, in line with the direction of our Long-Term Vision.

1. Strengthen earnings structure

2. Transition to keeping capital costs in mind

We will come together as a group to enact initiatives toward

To ensure we remain a group that can continue to meet thebolstering our proﬁtability structure (such as by adapting to

expectations of our stakeholders in the medium and longchanges in demand structures or improving productivity) whileterms, we plan to pivot to a management style that is morealso endeavoring to enhance our ﬁnancial standing and maintain

conscious of capital costs, in line with the ﬁnancial direction

ﬁnancial soundness (through a return to better EBITDA).

of our Long-Term Vision.

3. Implement digital transformation

4. Contribute to SDGs and 2050 carbon neutrality goal

In addition to swiftly promoting eﬀorts toward DX, with a senseBasedof urgency, in each of our businesses, the Group as a whole will

Declaration, we will steadfastly proceed with measures toadvance the Hankyu Hanshin DX Project.

achieve the SDGs and become carbon neutral by 2050.

1. Strengthen earnings structure

on

the

HankyuHanshinGroup

Sustainability

reserved seating service for an extra fee.

The business environment in which we operate has been dramatically changed

Furthermore, for hotel business, we are currently making solid structuralby the pandemic, and even now life has not returned to normal, which could

reforms (see page 59), and alongside these, in the accommodation businesshave a significant adverse effect on our existing businesses. For those

we will work to ensure thorough revenue management and to attract

businesses that have seen particularly reduced income since the outbreak ofcustomers by standardizing services.

COVID-19—urban transportation, hotel, and travel—efforts to strengthen our
profitability structure are both necessary and urgent, and we will strive to make

2. Transition to keeping capital costs in mind

improvements to incomes and expenditures as soon as possible.

To make sure that we often consider how best to secure returns that exceed

For our railway operation business, which are such a business, while theour capital costs, and appropriately control invested capital, we will review

impact of COVID-19 on transportation revenue is gradually easing, we cannot

how we classify and select investments, as well as the state of our businesses

foresee a return to pre-pandemic levels (particularly for commuter passes).

and assets.

Therefore, we are making changes to raise efficiency in our operations such as

Specifically, this involves using ROIC (return on invested capital) to verify

amending train schedules and at stations, while keeping passenger demand ininvestment yields and classify and select new investments, and also in themind, and also working on measures to raise revenue such as introducing amanagement of each business. For those businesses that don’t record income
in excess of capital costs, we will implement thorough management

Railway transportation
revenue forecast(compared to FY2019)*Excluding eﬀects of future
measures, etc.

(FY)

2023

2026

Non-commuterpass

Approx. -10%

Approx. ±0%

Commuterpass

Approx. -10%

Approx. -10%

Note: Forecasts for fiscal 2023 are based on information published on May
13, 2022.

33

Hankyu Hanshin Holdings Integrated Report 2022

improvements and other measures at the earliest opportunity, and sort and sell
off assets with low yields or low earnings.
Through efforts like these, we will aim to steadily achieve the ROE targets
set in our Long-Term Vision.

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

■ Specific efforts to transition to keeping capital costs in mind
Classifying andselecting investments● Classify and select new investments by verifying yields (standard of operating income to amount invested)using ROIC (return on investment capital).

● Calculate the ROIC for each business, and use the indicator in management● Ensure immediate management improvements for businesses where recorded income does not exceed

Reviewing state ofbusinesses/assets

capital costs, and where improvements look unlikely to help, undertake a radical review● Promote sorting and selling oﬀ of low-income or low-earning assets● Actively push the short-term-return (ﬁx-and-ﬂip) business● Advance outsourcing of assets (using J-REIT, private placement funds, etc.) where necessary

Income Targets toward Fiscal 2026
Fiscal 2024 to 2025

Towers South (completed in February 2022) and for the

In fiscal 2024 and 2025, we expect to further recover fromresidential sales and other business, expansion overseas andthe effects of COVID-19, and by steadily implementing

a higher number of condominiums sold in Japan, mean we

initiatives to strengthen the profitability structures of each ofpredict significant growth in operating income for both. Our

our businesses, we will fight our way back to operating

aim is for our real estate business as a whole to surpass pre-income of ¥100 billion, our pre-pandemic base level.

pandemic operating income levels.

Fiscal 2026

■ Factors behind increases in operating income towardfiscal 2026 targets (compared to fiscal 2023 forecasts)

In fiscal 2026, the target year for the Medium-Term
Management Plan, we aim to get within striking of our ¥130
billion Long-Term Vision target for fiscal 2031 by achieving

2023 forecasts to 2026 targets

operating income of ¥115 billion.

Recovery from the eﬀects of COVID-19 (on domestic and inbound demand)• Increased transportation revenue in the railway operations business througha recovery in domestic demand• Increased income through a recovery in domestic and inbound demand in
the accommodation business• Increase in number of visitors to venues and number of performances, etc.,
in the entertainment business• Increased income through a recovery in overseas travel
Increased rental income through higher utilization rates at Osaka Umeda
Twin Towers South
Increased income through the expansion of the real estate residential sales
business (condominiums, etc.)
Increased income through the expansion of the overseas real estate business
Growth in the information and communication technology businessIn the specific case of urban transportation, while we do
not foresee it returning to pre-pandemic levels, we do expect
to see a recovery, and then further growth, for real estate,entertainment,

andinformation

andcommunication

technology.
Especially with real estate, in terms of the leasing business,
improvements in the utilization rate at Osaka Umeda Twin+¥52 billion■ Outlook for Operating Income

Fiscal 2026
Aim to reach striking distance of theLong-Term Visionʼs FY2031 target(¥ billion)Base
incomelevel of¥100 billion

Fiscal 2023

114.9
95.2

115.0

Recover operating income toaround two-thirds of
pre-pandemic levels

63.0
Fiscal 2024 to 2025

39.2Fight our way back to
pre-pandemic standard(¥100 billion) as soon as
possible

2.1
2019

2020

2021

2022

2023

2026

(FY)

Note: Forecasts for fiscal 2023 are based on information published on May 13, 2022.
Hankyu Hanshin Holdings Integrated Report 2022

34

Creating Real Value: Our Story

Cash Flows
Planned four-year cumulative totals for FY2023 to FY2026
Cash inCash out
Strategic investment framework

EBITDA

640.0(¥ billion)-30.0

Investments allocatedfor M&A, etc.

-290.0Growth CapEx

Note: This includes investments in for-sale property and net
increases in equity.

＋
Additional borrowing, etc.

90.0-240.0Return to Shareholders,Interest expense, tax
payment etc.

-170.0■ Main growth CapEx

cumulative total EBITDA of around ¥640 billion, we predict that cash
expenditures will total about ¥730 billion (¥560 billion in capital
investments and ¥170 billion in payments for shareholder returns,

Urban
Transportation

Installation of station platform doors and making stations
more accessible
Extension of the Kita-Osaka Kyuko Line
Naniwasuji Connection Line and Shin-Osaka Connection Line

Real Estate

Umekita Phase II Development Project
Shibata 1 Project
Senri-Chuo Redevelopment
Developments in the Tokyo metropolitan area
(Yaesu 2 Naka Redevelopment and Hotel Grand Palace site)
Expansion of the real estate business outside Japan
Expansion of the condominium business within Japan
Expansion of the short-term-return (ﬁx-and-ﬂip) businessEntertainment

Relocation of the Hanshin Tigers Farm facility

Other

IT strategy, DX investment, etc.

interest and tax expenses, etc.). This will leave a shortfall of approximately¥90 billion, which we will cover with additional borrowing.
Moreover, for those cash expenditures, we forecast capital
investments of around ¥560 billion, but by controlling investment inmaintenance and renewal, we will actively assign funds to growth
CapEx, with an eye on the future. We forecast expenditure on strategic
and growth CapEx to total about ¥320 billion.
More details on our main growth CapEx can be seen in the table on(including lending)-560.0

Maintenance CapEx(investment inmaintenance andrenewal of existing
infrastructure)

With regard to the allocation of these funds, while we forecast a

Total capital investment

the right.

Management Indicator Forecasts
FY2022 result
Operating income
EBITDA*²¥39.2 billion

FY2023 forecast*¹¥63 billion

FY2026 target¥115 billion¥100.7 billion¥128 billion¥190 billion¥1,096.0 billion¥1,130.0 billion¥1,180.0 billion

Interest-bearing debt/EBITDA ratio

10.9

8.8

6.2

Debt/equity (D/E) ratio*³

1.3

1.3

1.1

¥21.4 billion¥35 billion¥75 billion

2.5%

4.0%

7% range¥1,064.6 billion¥1,105.0 billion¥1,155.0 billion

10.6

8.6

6.1

Interest-bearing debt

Net income attributable to owners of the parent
ROE(Reference)
Net interest-bearing debt*⁴
Net interest-bearing debt/EBITDA ratio*1 Forecasts for fiscal 2023 are based on information published on May 13, 2022.
*2 EBITDA = operating income + depreciation expenses + amortization of goodwill*3 D/E ratio = interest-bearing debt / equity*4 Net interest-bearing debt = interest-bearing debt - cash and deposits

35

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

FY2022 Results & FY2023 Forecasts / Partial Amendment to the Core Business System
Fiscal 2022 Results

return to pre-pandemic performance in existing businesses, andWe positioned fiscal 2022 as a crisis recovery phase, a period

surplus we need to make growth investments. With efforts likealso strive to enhance our financial standing and ensure we thethese, we foresee a return for operating income to around two-to achieve a recovery for existing businesses, in which we

thirds of the pre-pandemic level.

focused on strengthening our profitability structure, andworked assiduously to adjust to changes in the business■ Initiatives during the crisis recovery phaseenvironment that have been accelerated by the pandemic

Profit/loss
efforts(such as the so-called“new normal”). The result of this, theconsolidated results for fiscal 2022, show a certain amount ofrecovery from the effects of COVID-19 in several businesses,
and thanks to this and other factors, operating revenue,
operating income, ordinary income, and net income attributable

Capitalallocation

to owners of the parent all increased (see the table on the
opposite page for our management indicator forecasts).

Focus on recovering existing revenue
Reduce ﬁxed expenses and advance shift to variable
expenses

Maintenance
CapEx

Continue to control investments

GrowthCapEx

Continue to make growth CapEx inlarge-scale projects currently underway
Prudently assess signiﬁcance, businessviability, risks, etc., of new investments

Fiscal 2023 Forecasts
In fiscal 2023, too, we are considering further waves of the

Swift return topre-pandemic
performancepandemic, and so we have extended the crisis recovery phase.
Through profit/loss efforts and capital allocation, we will quickly■ Operating income forecasts by business(¥ billion)
30
20
10

9.3

5.6

11.2

*Forecasts for ﬁscal 2023 arebased on information publishedon May 13, 2022.

5.9 5.9

0
-10

Urban
Transportation

Real Estate

Ensure financial
surplus for growthinvestments

Left: FY2022 results
Right: FY2023 forecasts*

25.1
19.4

21.3

Enhancementof financial
standing

Entertainment

8.0-5.7 -1.9

Information andCommunication
Technology

4.5International
Transportation

TravelPartial Amendment to the Core Business System

for more advanced use in order to develop better communities.

In the hotel business, we are enacting the structural reforms wereal estate business, and for community developments—such as

announced in March 2021 (closing hotels that are unprofitable,
cutting fixed costs, etc.). Also, we plan to end business operations
at two facilities that are particularly showing their age—Hotel new
Hankyu Osaka and Senri Hankyu Hotel—and we are moving
forward with our investigation into how we can utilize their sites
Old
systemUrban
Transportation

Real EstateEntertainment

From fiscal 2023, we are integrating the hotel business into ourof the aforementioned sites—and combined developments, wehave decided to establish a framework that allows us to further
unify the two businesses and promote their strengths. Under thissystem, the hotel business’role will include boosting the appeal
and functions of urban areas by developing communities.
Information andCommunication
Technology

TravelInternational
Transportation

Hotel

Leasing
Sales, etc.

Hotel business integrated into the real estate businessNewsystem(FY2023 onward)

Urban
Transportation

Real EstateEntertainment

Information andCommunication
Technology

TravelInternational
Transportation

Leasing
Sales, etc.
Hotel

Hankyu Hanshin Holdings Integrated Report 2022

36

Creating Real Value: Our Story

SpecialFeature1

Human Capital̶Empowering Individuals

To achieve our Long-Term Vision, we need to increase the appeal of our line-side areas and content, expand our ﬁelds of business, andwork together to push Group transformation in unison. An essential factor in that eﬀort is the full engagement of every employee andthe driving force that can become. We thus aim to make signiﬁcant improvements in the working environment within the Group toenhance the workplace, ensuring that it is both enjoyable and enriching, and that it allows people of diﬀerent characters and abilities
to make full use of their unique strengths. We want to foster a vibrant, interactive culture that values everyoneʼs point of view.

Urban
Transportation①

Key
TalentReal Estate①

Key
TalentEntertainment①

Key
TalentInformation andCommunication
Technology①

Key
TalentTravel①

Key
TalentInternational
Transportation①

Key
Talent①Key Talent

Personnel who work tirelessly to review processes and enhance business value in each area

②Group-wide Managerial Talent
Personnel who constantly search for optimal solutions for the Group as a whole,
and work to build corporate value and strengthen our cores③Specialized Talent
Personnel who have specialized skills that are needed to achieve our Long-Term Vision
Personnel who carry out special missions such as creating new businesses
New Initiatives (DX Promotion, Healthcare, etc.)
Fig. 1 Human Resource Portfolio

1

Overview of Human Resources at the Group

Fig. 1

Under the direction of Hankyu Hanshin Holdings (the Company), which supervises the Groupʼs management, we have six core businesses
operated primarily by ﬁve companies: Hankyu Corporation, Hankyu Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel
International, and Hankyu Hanshin Express.
In each core business, eﬀorts are taking place to strengthen business competitiveness and ensure fast operations to maximize proﬁts.
Toward those ends, each business and company hires and trains its own key personnel (① in the illustration above) to review operations
and enhance business value.
As a pure holding company whose mission is to assess the overall Group and maximize proﬁts, we are responsible for training
group-wide managerial personnel (② in the illustration above) and transferring them to businesses and companies to promote the overall
interests of the Group and strengthen each business, steering us on a path toward the realization of our Long-Term Vision.
We also concentrate on training highly specialized personnel or hiring them from outside (③ in the illustration above). These are
specialists tasked with making us responsive to rapidly changing circumstances̶the socioeconomic environment and business climate
surrounding the Group̶which are inﬂuenced by a variety of factors such as the acceleration of DX initiatives, the pursuit of the SDGs, anda heightened drive to achieve carbon neutrality in 2050.
By building the human resources portfolio shown above and fostering a corporate culture that respects diversity and encourages
employees to give full expression to their character and capabilities (i.e. empowering individuals), the Group will be able to adapt asneeded to a rapidly changing business environment and achieve success and sustained growth.

37

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

Profile2Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Our Basic Approach̶Enhancing Human Capital to Achieve Our Long-Term Vision

Fig. 2

Achieving our Long-Term Vision requires a human resources strategy that lines up with that vision, which means not relying on the highly
homogeneous pool of graduates fresh from university, but bringing greater diversity into the workforce. It means drawing out new, latentabilities from employees and fostering them through a work environment of mutual cooperation between company and employee thatmakes it easy for empowering individuals.

Continuous Rise in Corporate Value

Strategy

Carry Out Group-Wide2

Transformation throughthe Long-Term Vision

Strategy

3

Empowering Individuals

Characteristic
Assemble Diverse Talent toHelp Create New Value● Proactively recruit

women, seniors,
people withdisabilities, foreign
workers, mid-careerhires, etc.

Strategy

1

WORK
ENGAGEMENTDIGITAL

Secure Personnel to Promote and
Implement DX in the Group● Recruit specialists from theexternal labor market● Upskill and reskill employees

Develop Highly Engaged Personnel● Discover and develop latentFig. 2 Human resources strategies linked to the Long-Term
Vision (management strategy)

abilities in employees● Implement job rotation

Three Human Resources Strategies
Strategy1Strategy2Strategy3

Develop Highly Engaged
Personnel

Assemble Diverse Talent toHelp Create New Value

Secure Personnel to Promote
and Implement DX in the GroupTo push Group transformation as one, itis necessary to have a highly engaged
workforce̶people who are capable ofresponding ﬂexibly to changes in theexternal environment, much as people
adapted their behavior to the pandemic.
We require people who enjoy change
and can act autonomously to grow theorganization.

To meet the challenge of the SDGs andkeep providing value of many kinds
requires not only human resources
skilled in the proper execution ofprescribed tasks but diverse talent̶
people who can bring change to theorganization from new perspectives. That
diversity can take the form of skills,
behavioral characteristics, career experience,high-productivity work styles, etc.

In a rapidly changing business climate that
includes labor shortages and shifting
consumer needs and values, it is essential torespond quickly and utilize data and digitaltechnologies to achieve transformation(creating value and improving productivity).
To do this, the Group needs personnel who
can promote and implement DX.

Speciﬁc Measures (see page 41 for details)

Speciﬁc Measures (see page 42 for details)

2.1 Empowering Women in the Workplace

3.1 Strengths of Having Information andCommunication Businesses

Speciﬁc Measures (see page 39 for details)
1.1 Conducting Employee Satisfaction
Surveys
1.2 Shift to Diverse, High-Productivity Work
Styles
1.3 Support for Balancing Work withChildcare, Elder Care and Medical
Treatment
1.4 Promotion of Health Management
1.5 Elimination of Harassment
1.6 Systematic Job Rotation
1.7 Introduction of Expert Professional
Course1.8 Extensive Training Programs

2.2 Encouragement of Paternity Leave

2.3 Employment Support for People with
Disabilities
2.4 Utilization of Career Train Job
Transfer System

3.2 DX Human Resource Training

3.3 Hiring of Specialized Personnel

Hankyu Hanshin Holdings Integrated Report 2022

38

Creating Real Value: Our Story

3

Setting Eﬀective KPIs

We have set KPIs as shown in the table below to systematically hire and train the personnel needed for our management strategies andmaximize the performance of every employee.
Non-financial KPIs*1① Employee satisfaction (engagement)

Target (FY2026)

FY2022 Actual record① Always better than in previous survey

Strategy

Strategy

Strategy

1

2
3

27.2％

③ Average years of service

18.8 years④ Frequency rate of lost-time injuries*2⑤ Rate of participation in Company-run human rights training

Due to a large gender disparity
in the labor force composition*,
the Company-wide average is
69.5%. The table below shows
the percentages by age group.

3.57② Job separation rate within last 3 years of employment

0.37② Always 100%

100％

⑥ Number of trainees (total)

12,883 employees⑦ Training hours per employee

6.53 hours*Percentage of employees under 35
by gender̶Female: 68%, Male: 27%① Percentage of women among new hires① Always 30% or more

36.8%

② Percentage of women in management positions② Improve to about 10% (FY2031)

5.1%③ Wage gap between men and women*3③ Zero gap (Salary difference in table at right: 100%)

69.5%

Up to 24

97.3%

40 to 44

89.9%*④ Paternity leave uptake rate*4

④100%

57.8％

25 to 2997.7%

45 to 49

89.0%*⑤ Employment rate of people with disabilities*5⑤ Always above the statutory employment rate

2.96%

30 to 34

85.2%*

50 to 54

98.7%

9.6％
0.52％
（＋3.9％）
17.7％

35 to 39

86.5%*

55 to 59

94.6%

⑥ Ratio of mid-career hires among new hires*6⑦ Ratio of foreign employees(Percentage increase in foreign employees over the previous year)① DX education expenditure*7,8② Percentage of employees completing DX online education*7

Age (years) Salary gap (%) Age (years) Salary gap (%)*Based on actual payment of wages
accompanying shortened hours forchildcare, etc.

100％

*1 Scope of coverage: Except as noted, Hankyu Hanshin Holdings and six major companies (Hankyu
Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International,
Hankyu Hanshin Express, Hankyu Hanshin Hotels)*2 Number of fatalities and injuries due to work-related accidents per million total actual working hours(with at least one day of absence from work)*3 Wages paid to female employees as a percentage of wages paid to male employees in the Company*4 S cope of coverage: Hankyu Hanshin Holdings and Hankyu Hanshin
Properties*5 Scope of coverage: 19 companies approved as special subsidiaries*6 Percentage of mid-career hires among new hires in fiscal 2022
*7 Scope of coverage: Hankyu Hanshin Holdings*8 Ratio of DX education to personnel training expenditureSpecific Measures for Enhancing Human Capital
Strategy1Develop Highly Engaged Personnel
Employee satisfaction level: 3.57

1.1 Conducting Employee Satisfaction Surveys Hankyu Hanshin Holdings Group
employee satisfaction through periodic monitoring. In the survey, the employee
satisfaction level is calculated as the average value for the four items listed in the

Quality maintenance and improvement
Outcomes

The Group has long conducted employee satisfaction surveys and aimed to improve

3.35

Desire to contributeto the work

3.61

Desire to contributeto the workplace

Desire to contributeto the company

3.64

3.69

Outcomes section in the diagram to the right. The four items are considered to be theWorksituation

workplace, boss, and company, which are possible factors aﬀecting employee
satisfaction, so that improvement measures can be set up and their eﬀects veriﬁed. In theﬁscal 2022 survey, overall satisfaction was 3.57,* a reasonably high level.

Trust in the company

Promotion of diversity
in the workplace

Spread of thecompany message

Bossʼs management
Suﬃciency of personnel systems*Based on a weighted average from the Company and six major companies. Each question employs a 5-point scale.

1.2 Shift to Diverse, High-Productivity Work Styles

Implementation of the Groupʼsmanagement philosophy in the workplace

Factors

outcomes or results of actions and were set to ascertain current conditions such as job,

Structure of the employee satisfaction survey

Hankyu Hanshin Holdings Group

Amidst the rapid changes in working styles brought on by the COVID-19 pandemic, and with the aim of boosting productivity, we began setting up
new systems and arrangements to promote diverse working styles independent of time and place. To allow employees to telecommute, we expanded
our work-at-home system and have been implementing a paperless system that eliminates the need for hand-stamped approvals. At the head oﬃce
we have introduced free address and solo workspaces that allow people to sit wherever is appropriate for their work, in addition to meeting spaces
for brainstorming and other face-to-face meetings. The head oﬃce building at Hankyu Hanshin Properties has implemented an idea that employees
came up with for a work/play space called a ladder base aimed at boosting communication. The space was named for the idea of setting up ladders
for climbing within the company. It includes a library area and ping pong table for a range of activities that include enjoying time relaxing.

1.3 Support for Balancing Work with Childcare, Elder Care and Medical Treatment

Hankyu Hanshin Holdings GroupWe have created an environment in which diverse personnel can balance their work and job with life events that require their involvementin childcare, elder care, or medical treatment.
Main systems in place at Group companies

Expansion of work-life balance support (shorter working hours for childcare, elder care, or medical treatment; work-at-home system; system of annual paid leave by the hour or half-day;
optional leave system (use of accumulated annual paid leave in expiring year); babysitter service subsidy system; hospital visit leave system; shorter working days system, etc.)
Expansion of support programs for employees on childcare leave (monthly mailings with company news, seminars to support employees returning to work, etc.)● Distribution of handbook on support for balancing work and childcare (for employees and supervisors) and more
●

●

39

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

Profile1.4 Promotion of Health Management

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Hankyu Hanshin Holdings Group<Policies, Systems and KPIs>
The Group carries out health management based on the belief that happiness stems from the physical and mental health of our employees
and their families, which is also the cornerstone of a prosperous future for the Group. Since the establishment of the Hankyu Hanshin HoldingsGroupʼs Declaration on Employee Health Management in 2018, the Company and six major companies and other Group companies have set
up a health management system led by the president under which a range of health policies are being implemented. Speciﬁcally, we have set
up group-wide KPIs related to the implementation rate of speciﬁc health guidance and the rate of smoking (see page 89).
With a focus on stopping smoking, Hankyu Hanshin Holdings, Hankyu Corporation, and Hankyu Hanshin Properties support employees whoquit smoking and have declared that smoking will be prohibited during working hours starting in ﬁscal 2025 as part of workplace
improvements.
<Certiﬁed Health & Productivity Management Outstanding Organization >The Groupʼs health management initiatives are expanding year
by year, and 19 companies (an increase of 4 from the previousyear) have earned the2022 Certiﬁed Health & Productivity

Management Outstanding Organizations* certiﬁcation. Amongthem, Hankyu Corporation, Hankyu Hanshin Electric Railway, andItec Hankyu Hanshin have received White 500 status for being

Category

2020

2021

2022

Large
enterprise

5

8

10

Small and medium-sizedenterprise

6

7

9

Total

11

15

19

in the top 500.

*A program established by the Ministry of Economy, Trade and Industry (METI) together with the Nippon Kenko Kaigi to recognize enterprises
making outstanding eﬀorts to advance health and productivity management.

1.5 Elimination of Harassment̶Arranging a Healthy Work Environment

Hankyu Hanshin Holdings Group

Once every two years, we conduct a group-wide work environment survey. The results of the questionnaire help each company toformulate a plan for harassment prevention measures, and are also used to make work environment improvements and provide
education.
Striving to create an environment in which it is easy to seek consultation, we have set up Harassment Consulting Oﬃces at the headoﬃce and at each company, and provide training to improve the expertise of those working in the oﬃces.
We also provide human rights awareness training for the president of each Group company annually, along with training regarding
awareness of harassment and other human rights for new employees and employees promoted at each level.

1.6 Systematic Job Rotation

Hankyu Hanshin Holdings

Note: Items with Hankyu Hanshin Holdings mark indicate measures for ② personnel
in the Human Resource Portfolio (Fig. 1)<Career Interviews>
As the overwhelming majority of Company employees (about 85%) are transferred to other Group companies (about 90 companies) andwind up working in disparate locations, we make special eﬀorts to communicate with them. Speciﬁcally, to get an accurate read on the
career aspirations of each employee, we use a Management by Objectives (MBO) Sheet and a Communication Sheet (a tool for employees
to directly share their opinions and requests about the company, work and career matters with the HR department). In ﬁscal 2022 we
introduced a new system of career interviews where employees meet with Human Resources twice by their eighth year in the company
to discuss their aspirations. These interviews help in assigning each person to the best position for them and for the company. We alsoplan to introduce a talent management system to use interviews and other personnel information in a more systematized way.
<Systematic Job Rotation (for well-balanced training to develop skills that can contribute to strengthening business competitiveness andoverall group leadership skills)>
We value and use job rotation in the Groupʼs six core businesses, primarily within each core separately to train large numbers of
employees. This practice gives employees familiarity with the business and helps them develop knowledge that will give us a competitiveedge in the industry.
From the perspective of the management of the entire Group, however, it is essential to have personnel who are familiar with many
diﬀerent businesses and can guide the Group in a leadership role. To develop that kind of expertise over the long term from a group-wide
perspective, we plan to gradually increase the scope of job rotations in a systematic way that includes providing cross-business experiencethrough internal transfers beyond each core.

1.7 Introduction of Expert Professional Course

Hankyu Hanshin Holdings

In a rapidly changing business environment, there is a concern that personnel who have been in management or administration for a longtime will not be able to respond well to new types of change. For this reason, the Company is setting up a new training program in ﬁscal
2023̶an Expert Professional Course to join the existing Basic Management Course. This will enable us to develop the specialized
personnel needed to carry out our business strategy.
By providing new career options for our employees, the Company hopes to elicit even better individual performance, aiming tostrengthen the Groupʼs businesses and further augment our corporate performance.

Hankyu Hanshin Holdings Integrated Report 2022

40

Creating Real Value: Our Story

1.8 Extensive Training Programs

Hankyu Hanshin Holdings

The Company has established a Basic Policy on Human Resource Development, based on which we oﬀer many types of training programs
each year. Such programs support the career aspirations of all employees in a step-by-step manner. We also support independent study
by subsidizing self-development and study opportunities and correspondence courses. We also send employees out to get external
training or to attend graduate school for an MBA, helping them acquire knowledge and develop personal connections.
In the area of self-development, we subsidize tuition to attend the GLOBIS University MBA program and assist with costs for other typesof external training. We also cover the full cost of tuition for correspondence courses that lead to career advancement.
In addition, the Group is carrying out training aimed at cultivating foresight and creativity through the New Value Creation Project
Research. This unique project trains people to conceptualize and propose new value by using cutting-edge technologies in the businesses
we are in, based on seminars given by experts in various ﬁelds complemented by discussion and research.

Outline of Training System

without preconceptions● Engages with others sincerely and with humility and isconstantly learning

2

Business schools
such asGLOBIS University

Congratulatory money system for qualiﬁcation winners

Expandeddigital-related
supportDiagram of Overall Training System

Basic Policy on Human Resource Development/Types of Personnel Needed

Strategy• Leadership/Management
strategy training• Promotion training• Follow-up training for
new employee• Training for new
employees
Etc.

Learning support systemperspective and has the drive to actualize that vision● Has high aspirations and strong beliefs and takes on challenges(3) Self-development
supportCorrespondence education support system

The Ideal Employee of Hankyu Hanshin Holdings● Envisions the future of the entire Group from an optimal

Seminar for employees returning from childcare leave

Types of Personnel Needed• Training for the Groupʼs
new directors andauditors• Follow-up• New manager training• Manager promotion
training• Evaluator training Etc.

Objective-based training
Dispatch to MBA graduate school

Encourage the creation of new value from a long-term
perspective(2) Training (Oﬀ-JT)
Stratiﬁed training

External dispatch training

3(1) Training
in theworkplace

New Value Creation
Project Research

2

Clarify the types of personnel needed and support theirtraining in the workplace

Expanded digital literacy training

Support proactive career formation and skills development

Goal-setting interview

1

Managerial Targets
AssistantNon-managerial
staﬀ
manager classemployees

Basic Policy on Human Resource Development

Assemble Diverse Talent to Help Create New Value

2.1 Empowering Women in the Workplace

Hankyu Hanshin Holdings Group

Hankyu Hanshin Holdings and the six major companies have established action plans based on the Act on Promotion of Womenʼs 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 employees̶regardless of gender̶can seek to fulﬁll their potential. To this end, we encourage career development and implement policies
to help maintain a balance between work and home life. These initiatives earned Hankyu Hanshin Holdings
the honor of being selected as a constituent of the MSCI Japan Empowering Women (WIN) Select Index,
which comprises leading companies in terms of gender diversity, for the third consecutive year since 2020.

2.2 Encouragement of Paternity Leave

https://www.msci.com/our-solutions/esg-investing

Hankyu Hanshin Holdings GroupThe Group encourages male employees to take childcare leave as part of measures to support a balance between work and home
life, and we are aiming for a 100% take-up rate. We believe that when men take a more proactive role in caring for children, it willallow women to work more hours again and can be the ﬁrst step toward a healthy, thriving society in which both men and womenbuild capabilities in their work and home lives. In ﬁscal 2022, the paternity
leave take-up rate among male employees with a newborn child was 95.2%.

Mr. Yoshida of the Hankyu Corporationʼs Transport
Department, who took about six weeks of paternity leave

2.3 Employment Support for People with Disabilities

Hankyu Hanshin Holdings Group

Assist Hankyu Hanshin is a special subsidiary established in 2005 for the purpose of providing opportunities for people with disabilities to work within our Group.
Since that year, the company has provided work opportunities through services such as cleaning, oﬃce massage, and intragroup correspondence deliveries. Thisinitiative was recognized by the Osaka prefectural government, which awarded us the Highly Commended Prize in its Heartful Corporate Challenge in September
2019. Then in December 2020, the Company became the ﬁrst Monisu Employer in Osaka prefecture for our
employment initiatives for people with disabilities.
Currently, the employment rate of persons with disabilities in Group-aﬃliated companies, including Hankyu
Hanshin Holdings, is 3.05% as of June 2022, higher than the legally stipulated rate of 2.3%, and we are working
hard to create even more jobs. For example, we are implementing workplace training within the Group to serve
as job assistance for people with disabilities who had been attending workshops or the like at atransition-to-employment organization or support agency. For people with disabilities, this is an opportunity toexperience the atmosphere of a business workplace and also deepens their understanding of our Group, which
can lead to being hired by a Group company. Such initiatives are welcomed by transition organizations.

41

Hankyu Hanshin Holdings Integrated Report 2022

A newly created space at the Hankyu Corporation headoﬃce, dubbed the Fuwa Fuwa Room, where 76 people
have undergone workplace training

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

2.4 Utilization of Career Train Job Transfer System

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Hankyu Hanshin Holdings

As Japan enters a full-ﬂedged phase of population decline, we ﬁnd ourselves at a turning point in our recruitment strategy as a company
that had once relied heavily on hiring a big pool of graduates straight from college every year.
Recently, a transportation industry scheme known as the Private Railway Career Train system was devised for the mutual acceptanceof employees among the 15 major private railway companies in Japan who have to leave their company and move due to life events suchas a spouseʼs transfer. Under this system, we accepted two employees, both of whom were able to make an immediate contribution to
the company with their career experience as private-sector railway employees.

Strategy

3

Secure Personnel to Promote and Implement DX in the Group

3.1 Strengths of Having Information and Communication Businesses

Hankyu Hanshin Holdings GroupThe Hankyu Hanshin Holdings Group has strengths in information and communications and has developed specialized talent working at
the forefront of IT.
Itec Hankyu Hanshin* plays a pivotal role, developing systems connected to the Groupʼs major businesses, including railways andbuildings, and provides solutions used in medical care and other ﬁelds. It supports the Groupʼs businesses with the latest ICT by building
and operating e-commerce sites, while also contributing to the development of DX human resources, as introduced below.
*Itec Hankyu Hanshin Co., Ltd.: total number of employees who have passed the Information Technology Engineers Examination (ITEE) (including former examination sections): 152
Advanced IT Engineers, 176 Applied IT Engineers, 396 Fundamental IT Engineers (as of March 31, 2022)

3.2 DX Human Resource Training

Hankyu Hanshin Holdings GroupIn April 2022, we established the Hankyu Hanshin DX Project Promotion Department. While the department works to build a group-wide
platform, personnel with expertise in each core business will consciously utilize digital technologies to promote DX throughout the Group.
In ﬁscal 2023, we began providing all employees with extensive digital training, starting with basic digital education using an e-learning
system. Additionally, we introduced a new job rotation system, dubbed the DX Human Resource Development Program. The program
works by taking a certain number of young employees positioned in core businesses̶generally in their third year with the company̶andtransfers them to Itec Hankyu Hanshin to pick up skills, then sends them back to their original departments after about two years. During
their time with the company, they gain experience in programming, systems development, and other skills. The goal of the program is todevelop personnel who have insight into both information technology and business operations.
We later plan to use the program to reskill more seasoned employees in the focused area of DX.
Our Approach to Digital Education

Objectives of the DX Human Resource Development Program

We will provide educational opportunities through both training (Oﬀ-JT) andself-development support aimed at developing personnel capable of promoting
value creation in each business, improving the productivity of each group company,
and leading their respective organizations.

❶ The acquisition of practical, real-world technical skills
through Engineer/Programmer developmental training

Means

Training Programs【DX】
Business and businessmodel transformation
for customer-centric
value creation• Philosophy of digital transformation
seminars• New Value Creation Project Research• Problem-solving training using AI• E-learning for acquiring basic DX
knowledge

Higheradded
value【Digitalization】
Digitalizing of individual
operations andmanufacturing
processes• E-learning for acquiring the ability
to read and analyze numbers• Assigning employees to takeproductivity improvement
training using Oﬃce

Cost
reductions【Digitization】
Conversion of analog
and physical data into
digital data

• Productivity improvement andinformation security training
using IT tools

New
value
creation

Basic Digital Education at the Company

Learning support system(strengthened support for DX and IT ﬁelds)

Improved productivity

Value creation

Objective❷ The acquisition of the fundamentals for becoming future
System Architects (people who can design DX and digitalbusiness systems)

Personnel Title

Personnel Roles

Producers

Leaders (personnel including CDOs) to lead theimplementation of DX and achieve digital businessBusiness designers

Personnel responsible for planning, draftingand promoting DX and digital business❷ Systems architects❶

Personnel who can design systems
related to DX and digital business

Data scientists/
AI engineers

Personnel with expertise in digital technologies(AI, IoT, etc.) and data analysis related to DX

UX designers

Personnel in charge of user interface design
for systems related to DX and digital businessEngineers/
Programmers

Personnel responsible for the implementation of digitalsystems and infrastructure-building, plus the above

Specialized digital education at Itec Hankyu Hanshin

The Company
3.3 Hiring of Specialized Personnel(special system for contract employees) Hankyu Hanshin Holdings
As a digital transformation initiative, the Group is taking steps to enhance digital marketing. In April
2021, we established the Data Analysis Lab within the Company through an industry-academia
collaboration with the University of Tokyo. We recruited Associate Professor Takahiko Kusakabe tosupervise all of the labʼs projects as Data Analysis Director.
Prof. Kusakabe, Data Analysis Director

Hankyu Hanshin Holdings Integrated Report 2022

42

02

Creating
Real Value:
The Processes
CONTENTS

43

Hankyu Hanshin Holdings Integrated Report 2022

45

Sustainable Management

47

Initiatives and External Evaluation

48

TCFD

51

Business Strategy
51

Urban Transportation

57

Real Estate

63Entertainment

67

Information and Communication
Technology

69

Travel71

International Transportation

Osaka Umeda Twin Towers South(Fully completed February 2022)

Hankyu Hanshin Holdings Integrated Report 2022

44

Creating Real Value: The Processes

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

■ Sustainability Promotion Framework

Sustainable Management Promotion
Framework

Board of Directors

From ﬁscal 2021, the Corporate Sustainability Committee

Group Management
Committee(composition details to the right), will meet twice each ﬁscal year,
in September and February. The committee will consider theetc.), ESG evaluation bodiesʼ rating situation, and other factors as
they formulate policies related to the sustainable management
priority issues, verify the progress of associated initiatives, anddeliberate and decide on items to be reﬂected in theMedium-Term Management Plan.
The committeeʼs deliberations are then referred to the GroupManagement Committee and it also reports to the Board of
Directors and accepts their oversight. In this way, we are promoting
sustainable management and incorporating it into the GroupʼsRefer/Report(important issues)
Topics factored into
Medium-Term Management Plan

outside environment (government, investor, competitor trends,

Refer/Report(important issues)

Audit

Corporate Sustainability Committee
・Chair:・Members:

Hankyu Hanshin Holdings Group CEO
Hankyu Hanshin Holdings president, executive oﬃcer
in charge of the Personnel and General Aﬀairs Div.,
executive oﬃcer in charge of the Group PlanningDiv., and others nominated by the committee chair・Secretariat:

Corporate Sustainability Dept. of the Personnel andGeneral Aﬀairs Div. (supervisory role) and the
Corporate Communication Dept. and Management
Planning Dept. of the Group Planning Div.

Propose policies

overall management system.

Implement/Report

Group companies■ The PDCA Cycle Applicable to Sustainable Management
The Corporate Sustainability Department, which is the supervising secretariat under the Corporate Sustainability Committee, collaborates
with the Corporate Planning Division and the individual business divisions to apply the PDCA cycle in an eﬀort to enhance sustainable
management.

Issues to be reported anddeliberated on by the Corporate
Sustainability Committee
Conﬁrmation of the progress of initiatives
related to important themes● Evaluation and analysis of eﬀorts to disclose ESG
information by the Group● Analysis of societal trends related tosustainability●

P Committee (February)
・Following the committee meetingin February, the Board of
Directors decides on a plan after
deliberations at the GroupManagement Meeting in March.

A Group Companies
Following the deliberations anddecisions made by the committee
in September, considers reﬂecting
them in the action plans of eachcore business and reviewing actionplans and non-ﬁnancial KPIs.

D Group Companies

P・Conﬁrms plans for the next ﬁscal
year and issues for achieving
non-ﬁnancial KPIs.

A

Corporate
Sustainability
Committee

Implements speciﬁc
initiatives to achieve
non-ﬁnancial KPIs in light ofthe plans and action plan
decided in March.

DC

C Committee (September)Conﬁrms the results of
non-ﬁnancial KPIs in theprevious ﬁscal year anddeliberates and decides on
issues that should be
reﬂected in the
management plan of theentire Group.

Group-wide non-ﬁnancial KPIs
Priority issues❶ Safe, reliableinfrastructure❹ Empowering
individuals

Environmental❺ protection

Non-ﬁnancial KPIs

Target value

Scope

FY2022 result

Number of culpable
incidents in railway
operations business

Maintain at zero

Hankyu Corporation, Hanshin Electric
Railway, Kita-Osaka Kyuko Railway, andNose Electric Railway

Employee satisfaction

Always better than in previous survey

Conducted once every two years by Hankyu Hanshin
Holdings and the six major companies.*

Improve to around 10% (FY2031)

Hankyu Hanshin Holdings and the six major
companies

Always 30% or more

Hankyu Hanshin Holdings and the six major
companies

36.8%

60% or more (FY2026)

Hankyu Hanshin Holdings and the six major
companies

49.3%

Smoking prevalence

15% or less (FY2026)

Hankyu Hanshin Holdings, Hankyu
Corporation, Hanshin Electric Railway, andHankyu Hanshin Properties

19.7%

Paternity leave uptake rate

100% (FY2026)

Hankyu Hanshin Holdings and Hankyu
Hanshin Properties

57.8%

FY2031: 46% compared to FY2014

Hankyu Hanshin Holdings and its
subsidiariesʼ Japanese worksites

Percentage of women in
management positions
Percentage of women among
new hires
Speciﬁc health guidance
provision

Rate of CO₂ emissions cuts

FY2051: Net zero0 incidents

Reference
page
P53

3.57
(on a ﬁve-level scale)
5.1%

36.1%
compared to FY2014

P89

P94

*Six major companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin Express, and Hankyu Hanshin Hotels

45

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfilePriority issues (materiality) and policies

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Related ﬁelds*

Project themes

Safe, reliableinfrastructure① Eliminate accidents and improve safety at railways and commercial facilities② Promote actions to prevent/reduce accidents and respond promptly and properly
to accidents if they occur③ Establish safe and comfortable facilities and services that satisfy the needs of adiversity of people

S

Provide railways and otherinfrastructure that are safe anddisaster-resilient. Ensure thatanyone can safely access ourfacilities and services.

SocialThriving
communities① 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 witheach other③ Create a line-side environment that makes it easier for women to work and raisechildren④ Promote measures to extend the healthy lifespan of the elderly⑤ Oﬀer services that satisfy the needs of foreign visitors/residents⑥ Enhance collaboration and partnerships with universities, research institutions,ventures, local communities, etc.

S

Help build sustainablecommunities with rich naturaland cultural heritage, making
great places to live in, work in,and visit.

SocialLife designs for
tomorrow① Propose products/services that help realize a lifestyle in harmony with nature② Propose products/services that lead to revitalization and promotion of local
communities and cultures③ Propose products/services that respond to diverse values and create comfort andexcitement④ Propose products/services for young people who will lead the next generation⑤ Create and disseminate cultures through sports and entertainments⑥ Improve existing services and create new businesses by utilizing ICT innovation

S

Promote reﬁned and inspired
lifestyle solutions for a better
tomorrow.

SocialEmpowering
individuals① Improve employee satisfaction and create a more positive workplace② Promote health and productivity management③ Promote diversity④ Respect human rights and prevent harassment⑤ Cultivate tomorrowʼs leaders

S

Provide an inclusive workplacethat values diversity and taps
into individual talent. Cultivate
tomorrowʼs leaders for society.

SocialEnvironmental
protection

E

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

Environment

RobustgovernanceG

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

Financial Section andCorporate Data

Governance① Cut greenhouse gas (CO₂) emissions② Improve energy eﬃciency (promote energy saving)③ Use more renewable energy (e.g. solar)④ Aim for more eco-friendly buildings (green buildings)⑤ Produce less waste and recycle more

① Promote eﬀective and transparent corporate governance② Ensure compliance and prevent corruption③ Enhance risk management, including climate change④ Pay attention to opinions of stakeholders in doing business*The SDG icon that is placed ﬁrst is the most relevant to each priority issue.

Non-ﬁnancial KPIs for each core businessIn order to address the six priority issues (materiality), we have identiﬁed non-ﬁnancial KPIs for each core business.

Urban Transportation

Real EstateEntertainment

Information andCommunication Technology

TravelInternational
Transportation

Accessibility rate, ratioof energy-eﬃcient rollingstock, etc.

Compliance rate of large buildings
with BCP, environmental certiﬁcationacquisition rate, adoption rate of ZEH
construction methods, etc.

Number of baseballclasses, number of children
and students in attendanceat the theater, etc.

Number of municipalities with which
disaster prevention agreements havebeen concluded, status of information
security certiﬁcations, etc.

Satisfaction of tour
participants, number ofcooperating
municipalities, etc.

BCP maintenance rate,
customs clearance
error rate, etc.

See page 53
for details

See page 60
for details

See page 65
for details

See page 68
for details

See page 70
for details

See page 72
for details

Hankyu Hanshin Holdings Integrated Report 2022

46

Creating Real Value: The Processes

Initiatives and External Evaluation
The Group has joined the following international initiatives, is accelerating ESG-related initiatives, and has undergone
evaluations and certification procedures for ESG indices (Socially Responsible Investment Indices; as of August 2022).

Initiatives
Task Force on Climate-related Financial Disclosures (TCFD)In May 2021, we signed a petition expressing our support for the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board. Since
then, we have been actively disclosing information in line with the disclosure framework recommended by the TCFD.

United Nations Global Compact
In May 2021, we signed a petition to express our support for the United Nations Global Compact(UNGC) advocated by the United Nations. In addition to complying with the 10 principles advocatedby the UNGC related to the protection of internationally proclaimed human rights, elimination offorced and compulsory labor, environmental responsibility, and working against corruption, we arefurther enhancing our initiatives in support of sustainable management.

Inclusion in the ESG Indices
FTSE Blossom Japan Sector Relative Index*¹
This ESG index is compiled by FTSE Russell from a selection of Japanese companies with high ESG
ratings in their respective industries.
The Company was originally added to this index in June 2022.

MSCI Japan ESG Select Leaders Index*²
This ESG index is constructed by MSCI by selecting companies from various industrial sectors withexcellent ESG evaluations from among the MSCI Japan IMI Top 700.
Our Company was included in this index when it was first formed.

S&P/JPX Carbon Efficiency Index
This ESG index is constructed of a selection of companies from among the constituents of the TOPIX
index, which comprises companies in the S&P Dow Jones Index and the Tokyo Stock Exchange,
excluding those with extremely low carbon efficiency and risk indicators above a certain level.
Our Company was included in this index when it was first formed.

MSCI Japan Empowering Women Index (WIN)*²
This is an ESG index that selects Japanese companies that lead the industry in terms of gender
diversity according to MSCI’s data on the employment and promotion of women in various
companies as well as information disclosure on diversity initiatives.
Our Company has been included in this index since June 2020.

ESG Evaluation and Certification
MSCI’s ESG RATINGS*²: Achieved the Highest Ranking of AAA
Since September 2021, we have maintained the highest ranking of AAA in MSCI’s ESG rating. This
serves as the criterion for selecting stocks for the MSCI Japan ESG Select Leaders Index.

Awarded Four Stars Under the 2021 Nikkei SDGs Management Survey
In the Nikkei SDGs Management Survey 2021 sponsored by Nihon Keizai Shimbun, which evaluatescompanies for their promotion of the SDGs as well as ESG principles, we received a rating of fourstars (representing a deviation value of 60 to less than 65), placing us among the top companies
ranked 51st to 153rd among 846 respondents.

＊1 FTSE Blossom Japan Index Series https://www.ftserussell.com/ja/products/indices/blossom-japan＊2 MSCI https://www.msci.com/our-solutions/esg-investing

For other environmental and social evaluations, please refer to our website (Japanese only).
https://www.hankyu-hanshin.co.jp/sustainability/evaluation/

47

Hankyu Hanshin Holdings Integrated Report 2022

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Task Force on Climate-related Financial Disclosures (TCFD)In May 2021, our Group announced its support for the Task Force on Climate-related Financial Disclosures (TCFD). Since then,we have proceeded with information disclosure in line with the various principles related to governance, strategy, risk
management, and metrics and targets. Under our Long-Term Vision announced in May of this year, we adopted a new CO₂
emissions reduction target of net zero for ﬁscal 2051 as a means of achieving the 1.5°
C temperature rise scenario set by the Paris
Agreement. We also updated our target for ﬁscal 2031, which represents the halfway point, to a 46% reduction in CO₂ emissions
from ﬁscal 2014 levels. Going forward, we will continue to steadily promote the transition to a carbon-neutral society byincorporating a response to climate change into our business strategies and by enhancing the resilience of our businesses.

1 GovernanceAs described on page 45, the Groupʼs sustainable management

addition, the Group conﬁrms the progress of initiatives, andpromotion system is described in the meetings of the Corporate

deliberates and decides on matters that should be reﬂected in

Sustainability Committee in September and February of eachthe Medium-Term Management Plan.

year under the chairmanship of the Group CEO in order to

In addition, the deliberations by the committee are submitted

promote environmental, social, and governance (ESG) responses,

to a meeting of the Group Management Committee, which iswhich includes a response to climate change, throughout theattended by all representative directors and representatives ofGroup. The committee formulates a policy on the priority issues

each core business, and are reported to the Board of Directors.

of sustainable management of the Group, with reference to the

In this way, we are promoting sustainable management byexternal environment relevant to sustainability (administrative,

incorporating it into the management system of the entire group.

investors, and other companies) and ESG evaluation agencies. In

2 Strategy
Identifying risks and opportunities
In considering responses to climate change issues, the Group identiﬁed risks and opportunities that have the potential to inﬂuence theGroupʼs core business, especially in railway operations and real estate, which are predicted to be particularly aﬀected by climate change.

Main Items Identiﬁed
The imposition of carbon taxes and other measures will lead to an increase in power costs (electricity expenses).

Medium tolong term

Ultra-large-scale typhoons and increasingly heavy rainfalls increase the potential for damage due to ﬂooding of garages,
subway stations, electrical equipment, destruction of embankments, and suspension of railway services.

Short tolong termRealestate

The cost of construction and renovation of buildings will increase due to soaring prices of building materials from theimposition of carbon taxes and the tightening of regulations on Net Zero Energy Buildings (ZEB) and Net Zero Energy
Houses (ZEH).

Short tomedium term

Railway
operations

The price advantage of energy eﬃcient railways is expected to increase, and customers can be expected to shift to railtransportation.

RealestateWe can strengthen our competitiveness by responding to emerging needs for disaster-resilient buildings and housingwith high environmental performance.

Railway
operations

Risk

Opportunity

Timeframe

Medium tolong term

For details of the risks and opportunities identiﬁed, please visit our website (https://www.hankyu-hanshin.co.jp/sustainability/tcfd/)(Japanese only).

Scenario Analysis and Estimation of Financial Impacts
We conducted scenario analyses of those that are expected to❶ Internal data: CO₂ emissions forecasts, natural disasterrisk response plan, ZEB and ZEH
construction plans, etc.

have a particularly large impact on the railway operation businessand real estate business in ﬁscal 2031, especially for identiﬁed
risks and opportunities. Speciﬁcally, we estimated the ﬁnancial❷ External data: Carbon tax forecasts, electricity rate

forecasts, rainfall forecasts, from reports*by the International Energy Agency (IEA),
the Ministry of the Environment, and theJapan Meteorological Agency

impact on business of the 1.5°
C and 2°
C temperature-rise
scenarios, under which carbon-neutral policies are expected to
be strengthened, and the 4°
C temperature-rise scenario, underwhich physical risks are expected to materialize. The internal andexternal data used for the analyses are shown on the right.

*Transition risks: IEA World Energy Outlook, Sustainable Development
Scenario, IEA Net Zero by 2050̶A Roadmap for the
Global Energy Sector, others
Physical risks:

ICPP RCP 8.5 and RCP 2.6, Japan Meteorological
Agency (JMA) Climate Change in Japan 2020̶
Observations, Predictions and Evaluation Reports on
the Atmosphere, Land and Ocean, etc.

Hankyu Hanshin Holdings Integrated Report 2022

48

Creating Real Value: The Processes

Railway operations
Impacts on the Railway Operation Business and Future Response
Under the 1.5°
C and 2°
C temperature-rise scenarios, we were able
to conﬁrm that environmental regulations should be tightened due
to policies and that the impact of carbon taxes and increases inelectricity retail prices would increase. As future measures, we will
reduce the impact of these by reducing energy consumption by
upgrading to energy-eﬃcient railway cars; introducing LED lighting;
and working to utilize renewable energy by installing solar panels at
stations.
Under the 4°
C temperature-rise scenario, it was conﬁrmed that

Category
Transition
risks

Physicalrisks

the potential for greater physical damage would be exacerbated bynatural disasters that are more intense in scale and frequency. In
this trial calculation, we selected the Muko River, which would be
expected to cause the largest amount of damage on our line-side
areas, and calculated the likely amount of damage. On the other
hand, it was conﬁrmed that the damage could be greatly reducedby evacuating trains when the Muko River ﬂoods. As a future
response, we will continue to strive for robust business operations
that can avoid long-term suspensions through various safety
investments and steadily implementing train evacuation plans.

Eventualities That Would Impact Business

Carbon tax and costs

Requirement to pay carbon taxes

Changes in energy mixes/Energy demand trends

Cost changes from shifts in energy retail prices

Abnormal weather(intensiﬁcation of natural disasters)

Changes in rainfall and other weather patterns

Flooding from Muko Riverwould damage our assets
and reduce ridershiprevenue

Impact on operating proﬁt*¹(¥ billion)
４℃

1.5‒2°
C−‐2.4*²0.1‐0.4

No train evacuations

‐3.8

‐1.0

(Amount saved by
avoiding train evacuations)

(3.4)

(0.9)

Train evacuation

‐0.4

‐0.1

‐0.4

‐0.2

Higher frequency of service cancellations due to torrential rain*³*1 None of the ﬁgures account for the possibility of passing on cost increases to passengers.
*2 For the IEAʼs 1.5℃ scenario, impacts are calculated on the basis of 130$/t-CO₂, with a dollar worth 122 yen (the rate at the end of March 2022).
*3 Increase in torrential rain is averaged over a period from 2076 to 2095.

ExamplesExamples of Both Tangible and Intangible Responses to Physical Risks

On the tangible side, we are implementing countermeasures such as preventing collapses of sloped trackside embankments and falling
rocks, strengthening drainage functions, and increasing the number of rain gauges in areas where risk of landslides along the tracks is high.
On the intangible side, in order to avoid ﬂooding damage to garages and vehicles due to ﬂooding of rivers, we are promoting ﬂood
countermeasures such as train evacuation plans. For example, for the Muko River, where the ﬁnancial impact was estimated in this scenario,
no ﬂoods have occurred in downstream areas such as the Nishinomiya Marshaling Yard area for the past 100 years. In preparation for an
expected large-magnitude impact in the event of an actual occurrence, we have formulated a plan to evacuate the trains in the Nishinomiya
Marshaling Yard to a location that would not be aﬀected by ﬂooding should disaster-level torrential rain* occur. In this way, we are working
to reduce damage by promoting safety measures against climate change risks from both a tangible and an intangible perspective.
*Assuming expected rainfall (once in 100 years) on hazard maps created by municipalities, etc.

Real estate
Impact on Our Real Estate Business and Future Responses
Under the 1.5°
C and 2°
C temperature-rise scenarios, it is conﬁrmedthat construction costs would increase due to the increased prices forconstruction material arising from the introduction of the carbon tax,
the adoption of ZEB/ZEH construction methods, and the tightening ofenvironmental regulations. Of these, for ZEH construction methods,
we will reduce the impact on operating income by utilizing subsidies
from the government and other sources (tax incentives for ZEH
housing and the like having improved customer opinion of suchhousing), incorporating the increase in costs resulting from theadoption of ZEH construction methods into income and expendituresfrom the stage of land procurement and passing it on in the selling
price. We will reduce the impact on operating income. On the other
hand, it is diﬃcult to pass on the cost of ZEB construction methods inrent prices, and the possibility exists that an impact equivalent todepreciation would occur on operating income. We will strive to
reduce the impact as much as possible while utilizing government
subsidies.
We have conﬁrmed that the ﬁnancial impact on the real estatebusiness under the 4°
C scenario would be limited. Flood damage inthe Umeda area is assumed as a physical risk, but we have alreadycompleted countermeasures against inland water ﬂooding. This
includes the installation of ﬂood barriers on real estate properties andthe preparation of disaster response manuals. River ﬂooding isassumed to have a very low probability of occurrence.*
In the future, we will adopt metrics such as the business continuity
plan (BCP) compliance rate, the green building certiﬁcation acquisition
rate, and the adoption rate for ZEH construction methods in new
condominium development, mainly for large buildings that are indevelopment, and will promote initiatives to respond to any scenario.

*Flooding of the Umeda area from the Yodo River is assumed only when the hazard map assumes the largest amount of rainfall (once in 1,000 years). However, theprobability of occurrence is assumed to be extremely low even under the 4°
C temperature-rise scenario.

49

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileCategory

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Impact on operating proﬁt*¹(¥ billion)

Eventualities That Would Impact Business

４℃

1.5‒2°
C

Rising prices of construction materials due to introduction of a carbon tax−‐1.9*²Requirement to pay carbon taxes−‐1.0*²

Response to greenhouse gas
emission regulations such as
ZEB/ZEH construction methods, anddissemination of new technologies

Increase in construction costs due to ZEB construction methods(equivalent to depreciation cost)

−

‐0.8

Changes in energy mixes/
Energy demand trends

Impact on electricity costs due to ﬂuctuations in electricity retail unit
prices (calculating electricity costs for the entire building, including
areas used by tenants)

0.1

‐0.5

Carbon tax and costs

Transition
risks

Creating Real Value:
The Processes*1 None of the ﬁgures account for the possibility of passing on cost increases to passengers.
*2 Estimated based on the IEA s 1.5°
C temperature-rise scenario estimates (same as railway operation business)

3 Risk management
Our Group has established a dedicated risk management oﬃce inexamine not only the risks for each item, such as natural

the Personnel and General Aﬀairs Division to oversee groupwide

disasters, that directly aﬀect business operations, but also risks

risk management and conduct annual risk assessments. The

that occur in the value chain, such as soaring energy and material

survey covers risks related to climate change (natural disasters,

prices. We then conduct risk assessments in relation to the timeetc.), accidents, information management, legal compliance, andhorizon (short, medium, and long terms). We also monitor theother organizational operations. The oﬃce is responsible forstatus of countermeasures several times a year.

identifying and analyzing pan-organizational risks, while business

The Corporate Sustainability Committee also deliberates on

divisions do the same for risks inherent to their own division andclimate change-related risks and their impact on business. The

establishes appropriate countermeasures. The status of thesecontents of the assessment are reﬂected in risk management forrisks is analyzed, and risk countermeasures are reported to thethe entire Group, where it is used to identify priority risks during

Board of Directors every year.

risk assessments.

With regard to climate change-related risks, we analyze and

4 Metrics and targets
We have adopted Environmental protection as a priority issue
for sustainable management and have adopted CO₂ emission
reduction targets as a non-ﬁnancial KPI common to our Group. In
May 2022, we adopted a new goal of net zero CO₂ emissions byﬁscal 2051, and as an interim goal, we aim to reduce CO₂
emissions by 46% from the ﬁscal 2014 level by ﬁscal 2031. Whilelooking at ﬁnancial soundness and investment eﬀects, we are
steadily promoting energy eﬃciency, and we will consider energy
generation (introduction of renewable energy power generationequipment, etc.) based on trends in technological innovation andbusiness proﬁtability (see page 94 for details).
In line with the above policy, each business has establishedindicators for properly managing non-ﬁnancial action plans andprogress, including responses to climate change. Additionally, we
specify concrete measures for SDGs and carbon neutrality by
2050 in our Long-Term Vision and Medium-Term Management

Real estate

Railway
operations

Plan announced in May 2022. We will continue to actively

promote initiatives contributing to the emergence of a society
committed to carbon neutrality.

■ Our Groupʼs CO₂ Emissions Reduction Target (announced in May 2022)
Urban transportation

Real estateEntertainment
TravelInformation and Communication Technology
International transportation

Hotel

Other

（t-CO₂）700,000
600,000-46%

616,365

500,000

compared to
FY2014

393,821400,000
300,000
200,000

332,83746％
reduction

100,000
0

Net
zero

FY2014
Results

FY2022
Results

FY2031
Targets

FY2051
Targets

Upgrading to energy-eﬃcient rolling stock, installing solar power generation on factory roofs and station buildings, and introducing
regenerative power storage devices
Promoting a response to natural disasters based on business continuity plan (BCP)
Non-ﬁnancial key KPIs: VVVF train* conversion rate, LED conversion rate, zero long service downtime due to natural disaster, etc.
(See page 53 for details.)*Railway cars whose motor voltage and frequency can be controlled with high environmental eﬃciency and no waste.
Helping make rental facilities carbon neutral (energy eﬃciency/generation and procurement of renewable energy)
Promoting ZEB and ZEH construction methods for buildings and housing under development
Non-ﬁnancial key KPIs: BCP compliance rate for large buildings in the Osaka-Umeda area, green building certiﬁcation rate for large oﬃce andcommercial buildings, rate of adoption of ZEH construction methods for domestic condominiums, etc. (See page 60 for details.)

Hankyu Hanshin Holdings Integrated Report 2022

50

Creating Real Value: The Processes

Business Strategy

Urban Transportation
We remain focused on enhancing thevalue along our line-side areas byproviding safe, secure, and comfortabletransportation services.

■ Basic Policies❶ Provide quality urban transportation services and otherrelated services❸ Ensure safe, reliable transportation
Enhance security/Develop rolling stock

Develop personnel/Strengthen Group collaboration/
Enhance services and convenience/Strengthencommunication/Produce further conveniences andexcitement around stations❹ Expand feeder services and extend catchment areas ofrailway lines and stations
Advance line-side measures in the bus and taxi businesses/
Enhance bicycle parking areas at railway stations andbicycle rental services❷ Increase convenience and reliability of infrastructure,
expand railway network, and stabilize business base❺ Take measures toward SDGs and carbon neutrality

Develop and expand railway stations, lines, and network/
Use digital technologies to make operations more efficientand create new demand

Introduce and manage energy-efficient trains andequipment/Use EVs or hybrid vehicles for buses and taxis■ Revenues and Income
Revenues from operations (left axis)(¥ billion)
238.6
250

43.5

(¥ billion)
75

227.2

200
150

Operating income (right axis)

40.1

156.9

161.6

100

188.4

45

21.3

50

5.6

0

‑5.1
2019
Results

2020
Results

2021
Results

60

30
15(with separate head oﬃce expenses, etc.)(¥ billion)
50

0.8
2.8
1.4
2.8

40
30
20

43.7

(FY)

Other

0.9
2.7
1.3
1.9

Advertising
Retailing

40.7

10

7.9

0

0
15

2022
2023
Results (Estimate)

Operating income and revenues from operations by type of business2019
Results

2020
Results‑6.8

0.7
0.8 14.7

2021
Results

0.7
0.8 26.3

0.6
1.0
0

‑4.2

2022
2023
Results (Estimate)

Automobile
Railway(FY)

Note: Due to a reorganization of the advertising business, advertising
is included in the railway category from ﬁscal 2021 onward.

Note: The anticipated full-year results for fiscal 2023 are based on information announced on May 13, 2022.

Business Environment
Changes in demand for movement due to COVID-19

such as revising train line schedules to match trends in travel

While the overall population in the Kansai region is on the

demand and employing new technologies to improve rider

decline, the Group’s line-side areas, especially in the Osaka-services and make maintenance more efficient.

Umeda district, continue to be highly popular and the
population is increasing in those areas.
However, the pandemic has brought changes to people’s
lifestyles and business styles, resulting in fewer opportunities
for movement and a growing diversification of movement
demand. We need to respond to such changes.

51

Specifically, we must focus on creating new movement
demand, along with further increasing productivity by means

Hankyu Hanshin Holdings Integrated Report 2022

Also, based on heightened public awareness of safety intransportation, the SDGs, and carbon neutrality, there is aneed to install sliding platform screen doors and introduce
energy-efficient vehicles that will reduce CO₂ emissions.

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Foundations

Financial Section andCorporate Data

Fiscal 2022 Review of Operations

Summary of the Medium-Term Management
Plan and Outlook

The effects of COVID-19 still loom large, but a year-on-year
recovery in ridership has led to increased revenues and income

Striving to build out services to meet the needs of a newnormal, improve productivity, and secure profits

Amidst the ongoing spread of COVID-19, we have been taking

In Urban Transportation, we are promoting initiatives that willmeasures to continue ensuring the reliable operation of transportation

help enhance the value along our line-side areas by providing safe,

services. To allow passengers to travel with peace of mind, we takereliable, and comfortable service. We will revise train schedules tothorough steps to prevent the spread of infection amongst ourmeet the level of passenger demand as COVID-19 recedes andemployees and appropriately ventilate and regularly disinfect trains

look into introducing a pre-paid seat service to create and capture

and buses as preventive measures. Hankyu Bus, Hanshin Bus, anddemand. Also, using new technologies we plan to boost the

Hankyu Taxi have been commissioned by some municipalities toefficiency of operational systems and maintenance work andtransport people to designated COVID-19 vaccination sites.

improve the services and conveniences on offer.

Non-COVID-19-related initiatives to improve safety in the railway

To improve safety for railway passengers, we will enhance

operation business include Hanshin Electric Railway starting to use

preparations for natural disasters based on business continuity

the new Platform 1 at Osaka-Umeda Station, now equipped withplanning principles and use a fare component system for improving

sliding platform screen doors thanks to improvement work progress

accessibility in stations to install sliding platform screen doors andat the station, and the completion of sliding platform screen door

other safety features at all stations.

installation on all platforms at Kobe-Sannomiya Station. In addition,

During the three years of the current Medium-Term Management

Hankyu Corporation has been enhancing its digital capabilities for aPlan, a recovery from the impact of the COVID-19 pandemic is

post-COVID-19 world, which includes introducing a top-notch

expected to lead to an increase in transportation revenue, but

chatbot service that employs artificial intelligence (AI) technology

commuter pass revenue is expected to continue to decline by

and updating the Hankyu Line App for mobile devices. The Company

about 10% from fiscal 2019, excluding the effects of policies yet tois also renovating 12 restrooms in 10 stations, including Osaka-Umeda

be implemented. We do not expect operating income for fiscal

Station to provide customers with greater convenience and comfort.

2026 to have recovered to pre-pandemic levels.

These results, plus some level of recovery in ridership in both theBoth revenues and income are expected to increase in fiscal

railway operation and automobile businesses, have led to increases

2023 compared to fiscal 2022, following a partial recovery fromover the previous year in revenues from operations and operating

the impact of the pandemic and a subsequent increase inincome.

transportation revenues from both the railway and the automobile
businesses.

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

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023 (estimate)

29,92230,391

31,29931,54932,272

32,62833,19833,456

34,11928,09328,65429,70060,26890,191

Total(¥ million)

FY201260,74991,141

61,63092,92960,91092,45962,92095,19262,72095,34863,137
96,33563,05996,516

61,88796,00740,982
69,07545,422
74,07756,45686,156FY2012 transportation revenue (total) = 100%
120%
100%

100%

101%

103%

103%

106%

106%

107%

107%

106%

80%
60%

2012

2013

2014

2015

2016

77%

82%

2017

2018

2019

2020

2021

2022

Hanshin Electric Railway transportation revenue (tier 1 + tier 2)
Non-commuter pass
Commuter pass2023

(Estimate)(¥ million)

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023 (estimate)

10,623

10,74011,008

11,107

11,372

11,563

11,797

12,024

12,327

10,476

10,62810,85919,42230,045

Total

96％

19,66930,41020,26031,26920,286
31,394

21,03532,407

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

21,66533,993

13,72524,202

15,39726,026

19,35630,216FY2012 transportation revenue (total) = 100%
120%
100%

100%

101%

104%

104%

108%

2012

2013

2014

2015

2016

109%

111%

113%

113%

80%
60%

2017

2018

2019

Note: The anticipated full-year results for fiscal 2023 are based on information announced on May 13, 2022.

2020

81%

87%

2021

2022

101%

2023

(Estimate)

Hankyu Hanshin Holdings Integrated Report 2022

52

Creating Real Value: The Processes

Major Non-Financial KPIs and Specific Efforts Based on Priority Issues for Sustainable Management (Urban Transportation)
Priority issues

Safe, reliableinfrastructure

Reason for action
plan based on
opportunity and risk

Safe, reliableinfrastructure

Reason for action
plan based on
opportunity and risk

Reason for action
plan based on
opportunity and risk

Environmental
protection

Reason for action
plan based on
opportunity and risk

• Improve safety
education training
and performanceof train operation
safety systems

Non-financial KPIs

Target values

Scope

FY2022 Actual record

Number of culpable
incidents in railway
operation business

Maintain at zero

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

Hankyu: 0 incidents (since 1979)
Hanshin: 0 incidents (since 1986)
Kita-Osaka Kyuko: 0 incidents (since 1970)
Nose Electric: 0 incidents (since 1982)

Number of major
accidents in
automobile businessNo accidents involving
death

Hankyu Bus
Hanshin Bus
Hankyu Kanko Bus
Hankyu Taxi
Hanshin Taxi
Osaka-Hanshin Taxi

Hankyu Bus: 0 incidents
Hanshin Bus: 0 incidents
Hankyu Kanko Bus: 0 incidents
Hankyu Taxi: 0 incidents
Hanshin Taxi: 0 incidents
Osaka-Hanshin Taxi: 0 incidents

In response to rising interest in customer safety and peace of mind, to add transport reliability to the given fundamental of transport safety to put
customers at ease and strengthen the Group’s brand and trustworthiness•S eismic retrofitting(elevated bridges/
stations)•S lope protection•F lood protection
for major facilities(including railcar
evacuation)• Bridge reconstruction
to lower risk offlooding•A scertainment ofbridge soundness

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

Zero

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

0 incidents

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

Increase number ofaccessible railcars(units)• Guidance chime installation rate
Hankyu：37%
Hanshin：68%
Kita-Osaka Kyuko：0%
Nose：7%
Aim for steady increase

Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway• Installation rate of advance warning
light for side sliding door opening/closing
Hankyu：64%
Hanshin：68%
Kita-Osaka Kyuko：86%
Nose：60%

Percentage ofaccessible railway
stations• Rate of step-barrier
removal*1
100%

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

Accessible humanservice rate•1
 00% service assistantcertification among
rail transit employees(station employees,
train crew, etc.)

Hankyu：64%
Hanshin：100%
Kita-Osaka Kyuko：100%
Nose：29%

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

Rate of conversion
to VVVF invertertype railcars*2

Aim for steady increase

LED light
conversion• Station lighting(excluding back yard)
Hankyu:100% (FY2031)
Hanshin:
100% (FY2031)
Kita-Osaka Kyuko:
100% (FY2022)
Nose：
100% (FY2027)

Hankyu：58% (98/170 train units)
Hanshin：67% (51/76 train units)
Kita-Osaka Kyuko：100%
Nose：20% (3/15 train units)
Hankyu Corporation
Hanshin Electric Railway
Kita-Osaka Kyuko Railway
Nose Electric Railway

Hankyu：57%
Hanshin：72%
Kita-Osaka Kyuko：100%
Nose：47%•T o accelerate environmental measures amidst rising interest in environmental issues such as global warming in order to meet the expectations ofsociety•T o prepare for the risk of rising costs such as electricity rates accompanying stricter environmental regulations*1 Percentage of accessible stations (among stations that service 3,000 or more passengers per day)*2 VVVF inverter-type railcar: a different type of railcar (not the type that generates waste heat energy to control resistors to adjust the voltage for the motor), but a moreenvironmentally efficient railcar that can control the motor’s voltage and frequency without waste

53

Hankyu Hanshin Holdings Integrated Report 2022

Close-Up▶︎

Safe, reliableinfrastructure

Action plan

Profile

Close-Up

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Promoting Accessible Transportation through Facilities andServices that Everyone Can Use with Peace of Mind

We are promoting initiatives at all railway companies in the Group to ensure that accessible physical and service
infrastructures are in place to enable the safe, reliable and comfortable use of our trains and stations by all customers,
including seniors and people with disabilities.

Accessible Railcar Initiatives
The new Hankyu Series 1000 and Series 1300 railcars will have door opening/closing warning lights, in-train information
display panels, and extra space for wheelchairs. Also, Hankyu Corporation will be putting the same features into existingrailcars with upcoming renovations. Starting in fiscal 2021, a chime that rings when the doors are standing open will be
introduced to help visually impaired passengers locate the train entrances on the platform for boarding.
Hanshin Electric Railway has installed a wheelchair/stroller space in every railcar, along with between-car fall-prevention
barriers. Already, 95% of its railcars are now equipped with in-train information display panels.

Door opening/closing warning system (Hankyu Corporation)

Wheelchair/stroller space(Hanshin Electric Railway)

Between-car fall-prevention barrier(Hanshin Electric Railway)

In-train information display panel (Hankyu Corporation)

Accessibility Measures at Railway Stations
In accordance with the Barrier-Free Act, our railway companies have been working to make train stations more universally accessible
through the resolution of step-barrier issues and other measures, taking into account the transportation accessibility master plans
formulated by local governments along our line-side areas, and we have been working with the national government and local
governments to install elevators and other facilities.
Hankyu Corporation was an early adopter of accessible systems. After the 1995 Great Hanshin-Awaji Earthquake damaged Hankyu
Itami Station, the station was rebuilt with an audio guidance system for visually impaired passengers, the first of its kind at the time.
Yet, the resolution of barrier issues remains difficult at two stations—Kasuganomichi and Nakatsu Stations. Accessible renovations arescheduled to be completed at Kasuganomichi Station in
fiscal 2023, while efforts are underway at Nakatsu Station to
install elevators and other systems to ensure accessibility,
along with sliding platform screen doors to complete thelong-term project of making all of our train stations universally
accessible.
Going forward, we are aiming to transform each stationfrom a simply a place for getting on or off a train into facilities
that can serve all customers as a local transportation node.

■ Status of Accessibility Implementation at Railway Companies*
Rate of step-barrier removal

Rate of accessible restroom
installation

HankyuCorporation

98％

97％

Hanshin Electric
Railway

100％

100％

Kita-Osaka
Kyuko Railway

100％

100％

Nose Electric
Railway

100％

71％*Percentage of stations that have an average ridership of 3,000 or more
people per day

Hankyu Hanshin Holdings Integrated Report 2022

54

Creating Real Value: The Processes

Installing Platform Screen Doors at All Stations
Hankyu Corporation and Hanshin Electric Railway are installing new sliding platform screen doors to improve platform
safety. At present, Hankyu Corporation has installed these at two stations—Juso and Kobe-Sannomiya—and is set to
install them at Kasuganomichi Station with the accessible renovation work to be completed by the end of fiscal 2023.
Hanshin Electric Railway has installed these platform door systems at two stations—Kobe-Sannomiya and Osaka-Umeda.
To promote the installation of such accessible facilities more quickly and steadily, the two companies have decided
to utilize a fare component system for improving accessibility in stations that was set up in December 2021. This system
will allow Hankyu Corporation to install platform screen doors (sliding or fixed) at all of its train stations by around theend of fiscal 2041, while Hanshin Electric Railway aims to do the same by around fiscal 2043.
Kita-Osaka Kyuko Railway has completed the installation of sliding platform screen doors at all of its stations and isalso raising the height of platforms to eliminate the height difference between the platform and the railcar to improvesafety.

Hankyu Kobe-Sannomiya Station

Hanshin Kobe-Sannomiya Station■ Platform installation status

HankyuCorporation

Juso Station

Installed on the Takarazuka Line
(Platform 3) and Kyoto Line (Platform
4 and 5) at the end of FY2019

KobeSannomiya
StationInstalled on all platforms at the end of
FY2022

Kasuganomichi
To be installed by the end of FY2023
StationPlatform screen doors (sliding or fixed) to beinstalled at all stations by around the end of
FY2041

HanshinElectric
Railway

KobeSannomiya
StationInstalled on all platforms at the end of
FY2022

Osaka-Umeda
StationInstalled on new Platform 1 in
October 2021
To be installed on all platforms by theend of FY2024

Platform screen doors (sliding or fixed) to beinstalled at all stations by around FY2043

55

Hankyu Hanshin Holdings Integrated Report 2022

Hanshin Osaka-Umeda Station■ Amount of fees to be collected under farecomponent system for improving accessibility instations

To enable faster, steady installation of platform screen
doors and other accessible facilities at all stations, we havedecided to implement a fare component system for
improving accessibility in stations and will begin collecting
an accessibility fee in addition to the fare in April 2023.
Hankyu Corporation
Amountto becollected
annually
Collection
periodTotalamountto becollected

Total
cost ofinstallation

3,672 million yen
13 years

Hanshin Electric Railway

1，
350 million yen
13 years(April 1, 2023–March 31, 2036)*Scheduled to continue
beyond FY2037(April 1, 2023–March 31, 2036)*Scheduled to continue
beyond FY2037

47,780 million yen

17，
550 million yen

91,258 million yen

32,000 million yen

Plan for FY2022–FY2026
17,222 million yen
Plan for FY2027–FY2036
74,036 million yen*Scheduled to continue
beyond FY2037

Plan for FY2023–FY2026
8,800 million yen
Plan for FY2027–FY2036
23,200 million yen*Scheduled to continue
beyond FY2037

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Service-Side Accessibility Initiatives
The Group’s railway companies are all working actively to improve safety through “soft” service-side
infrastructure in addition to the “hard” infrastructure of railcars, train stations, etc.
At Hanshin Electric Railway and Kita-Osaka Kyuko Railway, all station attendants and train crew members
have acquired Service Care-Fitter certification (as of March 31, 2022), and Hankyu Corporation and Nose
Electric Railway are also working to raise their certification rates.
In addition, employees of Hankyu Corporation conduct safety education activities by visiting elementary
schools along its line-side areas to explain such things as how railway crossings work, the correct way tocross them, what to pay attention to when waiting for a train on a platform, and etiquette when on a train.

Service Care-Fitter MarkHanshin Electric Railway holds hands-on field trips for the visually
impaired to deepen their understanding of railway facilities. Also, Nose
Electric Railway employees are engaged in “May I help you?”campaigns, visit social welfare facilities along our line-side areas, andprovide safety education covering such things as such as what to do ata railway crossing or on a station platform, and what to do in case ofan emergency.

Safety education activities at an elementary school along our line-side
Note: Not held in fiscal 2022 due to COVID-19
areas (Hankyu Corporation)

Safety education leaflet (Nose Electric Railway)

Hands-on field trip at railway facilities (Hanshin Electric Railway)

The Pursuit of Safety and Reliableness as the Core of our BusinessIn our Group mission we set forth the aim to deliver■ Safety Reports“safety and comfort” and “dreams and excitement.”
In the railway operation business, we have always
placed top priority on safety in our business
operations—the key component of peace of mind
for the customer. In line with our Sustainability
Declaration, which sets “safe, reliable infrastructure”
as our first priority issue, we have established zeroculpable incidents in the railway operation businessas a non-financial KPI common to the Group, andare constantly working to improve safety. We willcontinue to make group-wide efforts to improvesafety so that our customers can use our services
with peace of mind.

❶

❷

❸

❹

❶ Hankyu Corporation
https://www.hankyu.co.jp/approach/anzen/ (Japanese only)❷ Hanshin Electric Railway
https://rail.hanshin.co.jp/service/anzen/ (Japanese only)❸ Kita-Osaka Kyuko Railway
https://www.kita-kyu.co.jp/company/safety.html (Japanese only)❹ Nose Electric Railway
https://noseden.hankyu.co.jp/company/safety.html (Japanese only)

Hankyu Hanshin Holdings Integrated Report 2022

56

Creating Real Value: The Processes

Business Strategy

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

■ Basic Policies❺ Expand the scale of international businesses and build astable revenue base

Real estate leasing business❶ Promote attractive urban development in Osaka-Umeda
and areas along our rail lines to make our line-side
communities the absolute best among the Kansai networks

 xpand the scale of business in ASEAN nations
EExtend to developed countries (U.S.A. and others), which havestable markets●
Acquire non-residential assets such as commercial facilities and offices●●E nhance urban functions by promoting large-scale development
plans and both upgrading the value of and rebuilding holdings
based on the Umeda Vision plan (see page 26)●D evelop major line-side bases from a long-term perspective●❻ Strengthen and expand non-asset business●❷ Strengthen business foundation, etc., in Tokyo metropolitan area
❸ Strengthen short-term-return (fix-and-flip) business and distribution
facility real estate business

Real estate sales business and others

Expand scope of real estate funds and REIT business

Hotel business❹ Carry out structural reforms
 trengthen business competitivenessS
Strengthen competitiveness by using management resources toconcentrate and specialize●Improve competitiveness of each hotel
Review cost structure at existing hotels; improve efficiency ofbusiness operations at existing hotels●❹ Secure stable profits in the real estate sales business andexpand scale of operationsP articipate in medium- and long-term projects(urban redevelopment, building reconstruction, etc.)●E xpand business portfolio (rental condominiums for income, etc.)●E xpand business area (extend to Nagoya area and major regional cities)●■ Revenues and Income
Revenues from operations (left axis)

Operating income (right axis)(¥ billion)

296.0

300

237.3
200

49.3

188.4

50

19.4

25.1

25

0

0
2019
Results

2020
Results(¥ billion)
60

2021
Results

40

38.2

20

28.9

100

75

Operating income by type of business (with separate head oﬃce expenses, etc.)

246.6

236.0
41.5

(¥ billion)

2023
2022
Results (Estimate)

0

30.1

30.7

8.3 11.4

11.2

‑13.2

‑7.8

29.2
19.6

15.1

‑20

(FY)

2019
Results

Hotel business not included
Note: In line with the integration of the hotel business into thereal estate business from ﬁscal 2023, ﬁgures from ﬁscal
2022 on include the hotel business. The ﬁgures for ﬁscal
2022 were compiled for comparison with ﬁscal 2023 andare subject to change.

Leasing

35.2

2020
Results

2021
Results

2022
2023
Results (Estimate)

Sales
Hotel

(FY)

Hotel business not included

Reference:
Hotel business

Revenues from operations
Operating income

2019
Results

2020
Results

2021
Results

64.9

60.3

19.1

1.2

‑3.1

‑17.9

Note: The anticipated full-year results for fiscal 2023 are based on information announced on May 13, 2022.

57

Business Environment

degree in the real estate leasing business, but a gradual recovery is taking place.

Real estate leasing businesssuch factors as good locations and high functionality. Meanwhile, working styles

Commercial facilities were impacted by the COVID-19 pandemic to someare diversifying and online consumption is expanding, spurred on by the

Hankyu Hanshin Holdings Integrated Report 2022

The demand for office buildings owned by the Group remains steady thanks toCreating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Foundations

Financial Section andCorporate Datapandemic, and at the same time the value of off-screen, real-world experiences

Hankyu Hanshin Ueno Okachimachi Building in Taito-ku, Tokyo. In the area ofis rising. These are some of the many social changes taking place that will

logistics facilities, construction was also completed on the jointly developed

require a response through new services and technologies.

Logista, Logicross Ibaraki Saito (Ibaraki, Osaka) logistics centers.
Progress is also being made on the Umekita Phase II Development Project,

Real estate sales business and others
In the domestic real estate business, demand remains strong in our corescheduled for a preliminary unveiling in the summer of 2024.

sector—urban central areas whose prime location and proximity to train stations

Real estate sales business and others

offer high convenience. In the real estate business outside Japan, the COVID-19

In condominiums, we sold the Geo Nishinomiya Imazu (Nishinomiya, Hyogo),

situation has had a dampening effect, but we expect economic growth and

Geo Kyoto Nijo (Chuo-ku, Kyoto), Geo Magome (Ota-ku, Tokyo), and others. In

expanding demand among the ASEAN nations and in other countries over thereal estate sales (detached houses including property), we sold Geo Garden

medium to long term.

Shukugawa (Nishinomiya, Hyogo), Geo Garden Kobe Seiryodai (Tarumi-ku,

Hotel business

Kobe), Geo Garden Musashi Koganei (Koganei, Tokyo), and other properties.

In the hotel business, the business environment has worsened significantly

In the real estate business outside Japan, we have been expanding the scale

during the pandemic, but domestic demand is recovering gradually, and theof our business, participating in condominium and residential sales projects inreturn of international mobility going forward bodes well for the steady recovery

Thailand, Vietnam, and other ASEAN countries, as well as real estate leasingof inbound demand. In addition, large international events are in the works, suchprojects in Indonesia, and the development and operation of distribution

as Expo 2025, to be held in Osaka/Kansai, which will expand the demand forwarehouses in Vietnam.
These initiatives in the condominium leasing and sales businesses resulted inaccommodations, especially in the Kansai area.

a year-on-year increase in both revenues from operations and operating income.

Fiscal 2022 Review of Operations

Hotel business

Fiscal 2022 was another year strongly affected by the COVID-19 pandemic. In

including selling accommodation plans for COVID-19 vaccinated guests and an

the real estate leasing business, many commercial facilities in the Osaka-Umeda

order-at-the-table full buffet that allows guests to dine with peace of mind whilearea and other areas either closed temporarily or shortened their hours, while

keeping socially distanced.

We have introduced a number of creative ideas to try to capture demand,in the hotel business, some hotels closed temporarily or continue to experience

In addition to closing down unprofitable hotels, in April 2021 we opened thea tough business environment due to the slow return of customers in both

remm+ Kobe Sannomiya hotel, which got us off to an excellent start, and we

accommodation operations and the food/beverage businesses. Despite these

also decided to open a new hotel in the Umekita Phase II Development area.

circumstances, we have taken measures to prevent the spread of infection and

These choices, which concentrate our management resources, will strengthen

capture demand, and are making steady progress on large-scale projects.

our competitiveness.
As a result, in the hotel business, there was a year-on-year increase in

Real estate leasing businessIn our Umeda 1-1 Project, the large-scale development project that involves the
Osaka Umeda Twin Towers South building, Phase II construction was completed
on the Hanshin Department Store section in September 2021 and the entire
construction was completed in February 2022.
We have also been working to strengthen the competitiveness of existing
commercial facilities and office buildings and improve the occupancy rate.
Construction has already been completed on the following buildings, now open
for business: the Kobe-Sannomiya Hankyu Building, which is directly connected
to Hankyu Kobe-Sannomiya Station (Chuo-ku, Kobe), the Koshien Plus mallcomplex adjacent to Hanshin Koshien Stadium (Nishinomiya, Hyogo), and therevenues from operations and an improvement in operating income.

■ Domestic condominium units sold(units)

1,516

1,500
1,000

1,087 1,159 1,114

1,137
867

500
0

2017

2018

2019

2020

2021

(FY)

2022

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

2,200(unit: 1,000 m²)

Leasable area (left axis)

Leasable area in Umeda (right axis)

2,000

1,400
1,200

Start of work on Osaka Umeda
Twin Towers South Phase I

Acquired LaLaport
Koshien (site)

1,000

Completion of Osaka Umeda
Twin Towers North Phase II

1,800
1,600

2,170 1,100

940

1,580

800
Completion of Osaka Umeda Twin
Towers South Phase I, start of workon Phase II, and partial sale of stake in
GRAND FRONT OSAKA

Completion of GRANDFRONT OSAKA

680
2011

900

2012

2013

2014

2015

2016

2017

2018

2019

2020

Completion of Osaka Umeda
Twin Towers South Phase II

2021

2022

(FY)

700
600

Hankyu Hanshin Holdings Integrated Report 2022

58

Creating Real Value: The Processes

Summary of the Medium-Term Management
Plan and Outlook
Promoting urban development in areas along our rail lines tomake our line-side communities the absolute best among the
Kansai networks and expanding the real estate business in
non-service areas

logistics facilities. Overseas, we are expanding the scale ofresidential sales projects, short-term-return (fix-and-flip), andleasing, with a focus on ASEAN countries.
In the hotel business, we will be steadily pursuing structuralreforms, withdrawing from unprofitable hotels, and reducing
fixed costs while strengthening business competitivenessPart of our Long-Term Vision is to make our line-side

through rigorous revenue management.

communities the absolute best among the Kansai networks.

This is the outlook for the Group during the period of the

In the Medium-Term Management Plan, we aim to accomplish

Medium-Term Management Plan. In the real estate leasing

this through a number of efforts that include the development

business, increased occupancy of the Osaka Umeda Twinand value enhancement of major line-side areas such as theTowers South building and other factors is expected to boost

Osaka- Umeda and Senri-Chuo areas. Efforts also include

rental income, which we anticipate will increase operating

maintaining

Hankyuincome significantly through fiscal 2026. A similar increase isHanshin’s “Geo” brand housing and strengthening the brand.

andexpandingmarketshare

foralso expected in the real estate sales business, as the scale

In the Osaka-Umeda area, based on the Umeda Visionof our overseas real estate business grows and sales offormulated in May 2022, we will be carrying out large-scalecondominium units in Japan increase. As a result, operating

development (the Umekita Phase II Development Project

income in both real estate leasing and real estate sales isand the Shibata 1 Project) intended to upgrade urban

expected to exceed pre-pandemic levels. We also anticipate

functions by both enhancing the value of holdings andreturning to the black in fiscal 2025 in the hotel business on

rebuilding them (office buildings, shopping facilities, hotels,

the back of an expected recovery from pandemic impactsetc.). We also pursue urban development for the purpose of(including a recovery in inbound demand) and steadytransforming the Osaka-Umeda area into a center for new

progress in structural reforms.

industry creation and an international tourist destination.

Anticipating increased sales in the hotel business andSimultaneously, we are planning business expansion in our
non-service

areas.

Domestically,

we

are

working

tostrengthen the short-term-return (fix-and-flip) business, whichsome degree of recovery from pandemic-induced demand
drop-off, we expect an increase in both revenues and income
in fiscal 2023 over the previous fiscal year.

includes rental condominiums and shopping, office, and■ Structural Reforms in the Hotel Business❶ Operational

We will focus resources on no‐frills hotels (which havegood profit potential) and a selected number of full-service

The seven hotels listed below will close downin the time periods indicated.

hotels. That means we will close hotels that are unprofitable,
underperforming, or dilapidated.

FY2022

Dai-ichi Hotel Annex, Kichijoji Dai-ichi
Hotel, remm Kagoshima*, Umeda OS
hotel

End of FY2023(scheduled)

Daiichi Hotel Tokyo Seafort

Around theend of FY2025(scheduled)

Hotel new Hankyu Osaka

Around theend of FY2026(scheduled)

Senri Hankyu Hotel❷ Personnel

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

❸ Financial

We recorded impairment losses that reflect the diminishedprofitability of assets amid the pandemic.
Note: As a result of ① and ③ , the structural reform-related loss of 18.6
billion yen (impairment and costs of reallocating resources) wasrecorded as an extraordinary loss in fiscal 2021.

59

Hankyu Hanshin Holdings Integrated Report 2022

*By the end of fiscal 2022, directly managed hotels will become chain
hotels managed by the property’s owner.

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Major Non-Financial KPIs and Specific Efforts Based on Priority Issues for Sustainable Management (Real Estate Business)
Priority issues

Reason for action
plan based on
opportunity and risk

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

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

Thriving
communities• Implement measures, bothhuman and technological,
to enable customer use
with peace of mind,
including measures tomanage natural disasters

Non-financial KPIs

Target values

Scope

FY2022 Actual record

Accident and emergency
course attendance rate(for employees in realestate leasing)

100% (FY2031)

Hankyu Hanshin
Properties
Hankyu Hanshin Building
Management

69％

BCP readiness*1 rate forlarge buildings*2 in the
Osaka-Umeda area

100%

Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin
Properties

100%
Note: T arget property:
Osaka Umeda Twin
Towers SouthIn response to rising calls for safety, to prepare for accidents or natural disasters such as earthquakes or flooding from storms occurring more
frequently because of climate change through measures both human and technological, thereby strengthening the Group’s brand value andtrustworthiness•M anage use of“selectingredients”listed onmenus•T rain employees on menu
creation and item listings
 omply with designated•C
system of checks

Number of serious
culpable incidents
related to listing offoods

Maintain at zero

Hankyu Hanshin Hotels
Hanshin Hotel Systems

0 incidents

To make an active and ongoing effort to label foods properly in order to provide customers with safe food, thereby helping to build trust in the Groupand bolster our brand value• Enhance collaboration withlocal governments• Prepare stockpiles of items
for disaster preparedness
and establish a system for
managing them
• Prepare a response manual
for when lifelines get cut off• Prepare a response manual for
how to evacuate, the locationof evacuation shelters, etc.

Prepare stockpilesof items for disaster
preparedness

Secure a 3-day supply for
employees and guests(FY2031)

Hankyu Hanshin Hotels

Secure a 3-day supply for
employees

To strengthen risk countermeasures in times of emergency and create an environment in which customers can feel safe at a hotel, thereby helping tobuild trust in the Group and bolster our brand value• Carry out robust urban
development that promotes
ease of use for diverse
customers and working
stylesRate of multilingual
guidance at majorcommercial facilities in
the Osaka-Umeda area

100%

Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin
Properties

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

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

Aiming for a steady increase

Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin
Properties

63 instances(since FY2019)

Reason for action
plan based on
opportunity and risk

To provide facilities and services that deliver safety and comfort and offer dreams and inspiration, and that are easy to use for a diverse range ofcustomers, including non-Japanese people; and to get out ahead of the growing need for work style reform and diversification, thereby differentiating
our Company from others and strengthening our competitivenessGeo condominium or
and home purchasedesirability and tenant/owner satisfaction rates

Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin
Properties

Life designs for
tomorrow• Purchase desirability survey ofprospective buyers*3
Kansai-region condominiums:
Maintained No. 1 brand position in
KansaiTokyo-region condominiums: Amongthe top 7 brands in Tokyo (FY2031)• Tenant/owner satisfaction rates
Condominium tenants in Kansai region:
continued to be 90% or higher
Condominium tenants in Tokyo region:
90% or higher (FY2031)
Detached-home owners in Kansai
region: 90% or higher (FY2031)• Purchase desirability
No. 1 among 18 brands forprospective condominium
buyers in Kansai region
No. 11*4 among 16 brands
for prospective condominium
buyers in Tokyo region•S atisfaction rates
Among condominium tenantsin Kansai region: 90%
Among condominium tenantsin Tokyo region: 92%
Among detached-home owners
in Kansai region: 100%*5

Number of apartment
units sold in ASEAN
countries (total)

Aim is for a steady increase

Hankyu Hanshin
Properties

Approx. 45,460 units(Vietnam: 14,000; Thailand:
23,000; Philippines: 4,000;
Indonesia: 3,000; Malaysia: 1,000)

Reason for action
plan based on
opportunity and risk

Close-▶
Up

Safe, reliableinfrastructure

Action plan

• Work to improve customer
satisfaction by responding
to customers’ diverse values,
providing comfort andinspiration, and proposing
lifestyles and carrying out
urban development projects
that will lead to community
revitalization• To increase customer satisfaction and boost loyalty to the company brands, propose lifestyles that match diversifying customer values and needs,
and carry out urban development for local revitalization and the benefit of the next generation• To leverage our expertise from Japan to contribute to local urban development in ASEAN countries in order to boost the Group’s brand value
overseas and develop future clientele*1 BCP readiness: emergency power installed at the 3rd floor or higher; emergency power to last 72 hours*2 Large buildings: buildings with a total floor area of 30,000 m² or more completed in fiscal 2022 or later*3 Based on purchase desirability survey of prospective buyers (conducted by Hankyu Hanshin Marketing Solutions on the Web)
*4 Ranking dropped in the Tokyo metropolitan area due to an expanded area of the survey*5 Pertains to Geo Garden houses with handover between April 2020 and March 2021
Hankyu Hanshin Holdings Integrated Report 2022

60

Creating Real Value: The Processes

Priority issues

Action plan

Reason for action
plan based on
opportunity and risk

Target values

ZEH conversion (ZEH-M
oriented*¹ or better) ofcondominiums for sale orlease starting in FY2025

100%
Note: Excluding some properties
such as those jointly owned
with another company

Hankyu Hanshin
Properties

Acquisition rate ofgreen building andother environmental
certifications*2 that
apply to office buildings
and large buildings*3 forcommercial and other
uses

100%

Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin
Properties－

Note: Applied from Geo Saito
Irodori No Oka; construction
to be completed in FY2024

100%
Note: Target property: KobeSannomiya Hankyu
Building-50% compared to FY2014(FY2031)

Hankyu Hanshin Hotels-77% compared to FY2014
Note: Steep drop-off due to the
COVID-19 pandemic

To contribute to building a sustainable society by working hard to reduce food waste as a company that handles food in light of the growing
problem of food waste

Number of disposable
plastic items in guest
rooms-50% compared to FY2020(FY2031)

Hankyu Hanshin Hotels-4.3%
Note: S tarting in April 2022,
some disposableamenities will be madeavailable in the front
lobby while we work toswitch to environmentallyfriendly products

To respond to customer expectations and contribute to building a sustainable society by working hard to reduce the use of plastics in light ofgrowing global concern among the public about microplastics ruining the environment*1 ZEH-M Oriented (Zero Emissions House-Mansion): a condominium with 20% or more reduced overall primary energy consumption, including common areas (the energy
consumed for heating, cooling, ventilation, lighting and hot water heating as defined by 2016 energy conservation standards)*2 E
 nvironmental certifications: systems such as DBJ Green Building, CASBEE, BELS, LEED, etc. Other properties with DBJ Green Building certification are listed on page 95.
*3 Large buildings: buildings with a total floor area of 30,000 m² or more (excluding properties jointly owned with another company and those completed in fiscal 2021 or later)

Close-Up

Safe Urban Development with Improved Disaster Preparedness for Peace of Mind

In the Group’s real estate leasing business, we are developing facilities that everyone can use with peace of mind byimproving their disaster readiness both physically and socially.

Osaka Umeda Twin Towers South Leads the Way in Sustainable Urban Development
Osaka Umeda Twin Towers South, completed in February 2022, employs advanced vibrationdamping construction and features an emergency power supply that can supply power for up to
72 hours). It also houses critical infrastructure and a disaster control center on the second flooror higher. These are some of its physical disaster-preparedness functionalities. In addition, Umeda
South Hall is a multipurpose hall with two spaces that can be used as an emergency shelter forover 1,000 people, in addition to a roof plaza, in the event of an earthquake or other disaster thatstrands large numbers of people. We have also been redeveloping the surrounding area inOsaka Umeda Twin TowersSouthconjunction with the building’s reconstruction and are making the underground, ground floor, and deck levels all accessible.
Through these efforts we are contributing to improved disaster preparedness in the Osaka Umeda area in ways that will
ensure safety for all facility users and employees, and achieve business continuity in the event of a disaster. The redevelopment
work also improves navigability and safety to provide a positive, high-quality urban experience.
Highest (5-Star) DBJ Green Building Certification
In addition to its high disaster preparedness, the building is also recognized for its high environmental standards. In April 2022,
it received the highest DBJ Green Building Certification rating of 5 stars, awarded only to buildings in Japan with the highest
level of environmentally and socially conscious management.

61

Hankyu Hanshin Holdings Integrated Report 2022

Close-Up▶︎• Study how to eliminate theEnvironmental use of disposable plastic
items
protection • Select products made ofalternative materials
Reason for action
plan based on
opportunity and risk

FY2022 Actual record

To maintain and improve the asset value of owned real estate, improve customer ratings, and raise brand value by taking active measures toachieve carbon neutrality• Control food waste (useprocessed waste materials
effectively, and devise waysof serving and arranging
food)
Environmental• Establish a system forVolume of food waste
protection
weighing waste• Promote the reduction andrecycling of waste• Introduce garbage disposals
for food waste disposal
Reason for action
plan based on
opportunity and risk

Scope

Close-▶
Up• Reduce CO₂ emissions
by improving energy
efficiencies, etc., andEnvironmental pursue green building
and eco-friendly housing
protection
to contribute to resolving
societal issues anddifferentiate the company

Non-financial KPIs

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate DataIn April 2022, a switch was made to power derived from carbon-free renewable energy for all electricity* used in thecommon areas and private office areas of the building. This helps tenant firms with their environmental goals and unites
building owners and tenant firms in the effort to achieve a carbon-neutral society.
*Except for power generated independently by the building’s cogeneration system

Our First Sustainability Bonds Issued
In December 2021, we issued our first sustainability bonds to fund a part of the construction, as the project qualifies
under the principles and guidelines of the International Capital Market Association (ICMA) for working to resolve
environmental and social issues. The building has environmental certification for its many eco-friendly systems; itoffers high disaster resilience, and it has improved accessibility and bettered the pedestrian experience throughaccessibility measures.

Close-Up

Aiming for Eco-friendly Housing and Hotels

The Hankyu Hanshin “Geo” housing brand is dedicated to incorporating customer feedback into design development tocreate the most appealing, eco-friendly housing. Also, Hankyu Hanshin Hotels is working proactively to resolve socialand environmental issues.

Building Comfortable Homes with Higher Environmental Performance
The “geo fit+” (geo fit plus) program is a product planning project begun in 2008 that aims to create more comfortable, ecofriendly residences based on tenant and customer feedback and making improvements using a high-level PDCA (plan-do-checkact) model. As part of these efforts, we were among the first to
install glass windows with Low-E double-glazing and LED lighting as
standard equipment. We also introduced a system for recycling

ZEH-M System
Uses as little energy as possible

Uses energy efficiently

Generates energy

Improved insulation

High-efficiency
equipment and systems

Renewable energy
equipment

discarded cooking oil from residents into biodiesel fuel for buses as

Energy consumption
Reduced bypart of related environmental efforts.

+

In further pursuit of carbon neutrality, all new Geo condominiums
for sale*¹ and Geo Ent condominiums for rent*¹ from fiscal 2025 onHigher insulating performance

will have a ZEH-M Oriented rating or higher.
Geo’s first high-rise ZEH condominium, Geo Saito Irodori No Oka
The first phase of construction on GEO Saito Irodori no Oka (Minoh,

Geo fit+ Website(Japanese only)

Heating

20% or more

CoolingHeating

Ventilation

Cooling
Ventilation

Lighting
Hot water+

Lighting
Hot water

https://geo.8984.jp/geofitplus/
index.shtml

Osaka), GEO’s first high-rise ZEH condominium, will be completed in 2023. In order to satisfy the thermal insulation performancerequirements for ZEH-M Oriented certification, aluminum-plastic composite sashes and Low-E insulated glass are being used,
together with thicker insulation materials in the walls and floors. The three criteria for selecting the facilities in each unit wereenvironmental, health, and economical performance to promote energy savings. These measures have earned the highest 5-star
BELS ranking (Building-Housing Energy-efficiency Labeling System), a third-party certification system in Japan for rating theenergy-saving performance of buildings.*2*1 Excluding some properties such as those jointly owned with another company*2 T his rating is for the entire building and does not guarantee the performance of individual units. The energy reduction rate is data from the firstphase of construction; second phase data has yet to be obtained.

Efforts to Remove Plastics from Hotels
At Hankyu Hanshin Hotels, as an environmental measure, some disposable amenities areavailable in the front lobby for guests to take according to their needs.* We are also switchingover to the use of environmentally friendly plastics for amenity items.
*At Daiichi Hotel Tokyo and Hotel Hankyu International, guests are offered whatever amenities they need whenchecking in.

Hankyu Hanshin Holdings Integrated Report 2022

62

Creating Real Value: The Processes

Business Strategy

Entertainment
We will continue to fulfill dreams andoffer excitement through our content.

■ Basic Policies❶ Maximize value of the Hanshin Tigers and Koshien brands❸ Advance growth of other entertainment businesses andthe leisure business

Forge a team that contends for the championship on a regularbasis/Increase the appeal of Hanshin Koshien Stadium and the
Koshien area, and expand the stadium business

Expand the music business and Mt. Rokko businesses❷ Maximize value of the Takarazuka brand
Quickly restore the capacity utilization and build a strong
financial record for the Takarazuka Revue/Actively expand
the content business using digital technologies/Increaseinternational business■ Revenues and Income
Revenues from operations (left axis)(¥ billion)
80
60

74.5
13.4

40

Operating income (right axis)

74.0
11.7

62.9
42.2

9.3

72.1

(¥ billion)
20

11.2

Operating income and revenues from operations by type of business(with separate head oﬃce expenses, etc.)(¥ billion)
20

15

15

10

10

20

5

5

0

0

0

‑5

‑5

‑2.3
2019
Results

2020
Results

2021
Results

2022
2023
Results (Estimate)

(FY)

8.3

Stage

7.2

7.3

6.5

2019
Results

2020
Results

6.9
1.7
‑2.5
2021
Results

3.7

7.4

Sports

5,5

2022
2023
Results (Estimate)(FY)

Note: The anticipated full-year results for fiscal 2023 are based on information announced on May 13, 2022.

Business Environment

Fiscal 2022 Review of Operations

Embracing the rising value of real experiences brought onby the COVID-19 crisis

Significant effects from the pandemic remain, but operating
revenues and income rose more than in the tougher previous year

In the wake of the pandemic, we are gaining a renewed

Attendance at baseball stadiums and theaters remained restricted

appreciation of the value of the real experience while online

in fiscal 2022 due to the pandemic, constraining business. In suchconsumption continues to expand. In the entertainment

circumstances, we continued to take measures to prevent

business, with strong demand for attendance at baseballinfections so that visitors could feel safe attending games atgames and theater performances, we will continue toHanshin Koshien Stadium, performances at Takarazuka Grandencourage the finest content. We will also employ digital

Theater, and events at other venues while doing our best to

and other new technologies to expand services and offerings

manage facilities.

aimed at further growth through greater entertainment
appeal and an expanded customer base.

Compared to the previous year when a large number ofscheduled events had been postponed or canceled, the Hanshin
Tigers played more official home games and the Takarazuka Revue
held more performances, resulting in increased operating revenues
and operating income in both the sports and stage businesses.

63

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Sports Business

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Summary of the Medium-Term Management
Plan and Outlook

In the sports business, the Hanshin Tigers responded to thecheers of fans and won enough games to be in the pennant
race up to the end of the season, advancing to the Climax
Series. At Hanshin Koshien Stadium, a section of the Museum

Enhancing the appeal of content and using
digital technologies to expand the customer baseof Hanshin Koshien Stadium was moved and expanded in a

In the entertainment business, we are aiming for additional growthrenovation aimed at broadening its appeal.

by further boosting the appeal of content and expanding the

In the Mt. Rokko area, we opened one of Japan’s largest
athletic

facilities—Rokkosan

AthleticPark

customer base. Specifically, in the sports business that includes the

GREENIA—toHanshin Tigers and Hanshin Koshien Stadium, we aim to deliver

popular reviews.

attractive content that customers want, and in the stage business,
we will set up a system capable of delivering quality productions at

Stage Businessa steady rate. In both businesses we will utilize digital technologies

In the theater business, many performances proved popular,

to expand services and content.

including the Snow Troupe’s City Hunter and Fire Fever!, andFor the period of the Medium-Term Management Plan, from fiscal

the Moon Troupe’s Tonight, at the Movies and Full Swing!,

2025 on in sports, we anticipate a full recovery to pre-pandemic

performed by the troupe’s top new stars. Also, a Takarazuka

levels in attendance of Hanshin Tigers’ regular season games. In

Revue live-streaming service was expanded to allow moretheaters, we hope to see continued high rates of attendance at

people to watch performances at home on their TV,

performances and are planning for growth through theater-related

smartphone, or other devices. The service is now being usedstreaming, online shopping, etc. Combined, we expect operatingby a large number of customers.

income in fiscal 2026 is to exceed pre-pandemic levels.
In fiscal 2023 we expect increased attendance at sporting eventsand a greater number of theater performances to be held—a degreeof recovery that will mean higher operating revenue and higher
operating income as compared to fiscal 2022.

■ Total attendance at Hanshin Tigers home games (by season)

Number of regular season games:
71 (+11 from previous year)[Breakdown]
Hanshin Koshien Stadium:3 games with no spectators, 25
games open to season ticket
holders only, 34 games open toseason ticket holders andpre-purchased ticket holders(prior to measures limiting event
attendance)(Thousands of people)
3,500
3,000
2,500

2,728

2,772

2,690

2,878

2,911

3,035

2,899

3,091

2,000
1,500
1,000

518

500
0

2012

2013

2014

2015

2016

2017

2018

2019

2020

749

2021 (CY)■ Takarazuka Revue total attendance of performances(Thousands of people)
3,500
3,000
2,500

2,502

Takarazuka Grand Theater/Tokyo Takarazuka TheaterLive viewing*¹

2,672

2,668

• Number of shows:
Takarazuka Grand Theater: 390(+150 from previous year)
Tokyo Takarazuka Theater: 387(+122 from previous year)

Other theaters

Live streaming*²

2,825

2,844

2,996

3,128

2,991

2,727

2,000

1,565

1,500

Kyocera Dome:
9 games open to pre-purchased
ticket holders (prior to measures
limiting event attendance)

1,000• Shows were suspended during
the following periods:
Takarazuka Grand Theater:
April 26‒May 10,
February 5‒27
Tokyo Takarazuka Theater:
April 27‒May 10,
January 8‒29

500
0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022 (FY)*1 Live viewing of shows at movie theaters nationwide for paying audiences*2 Live streaming of shows via the internet for viewing at home on a TV, smartphone, or other device for paying viewers

Hankyu Hanshin Holdings Integrated Report 2022

64

Creating Real Value: The Processes

Major Non-Financial KPIs and Specific Efforts Based on Priority Issues for Sustainable Management (Entertainment Business)
Priority issues

Safe, reliableinfrastructureLife designs for
tomorrow
Reason for action
plan based on
opportunity and risk

Life designs for
tomorrow

Reason for action
plan based on
opportunity and risk

Life designs for
tomorrow

Reason for action
plan based on
opportunity and risk

Environmental
protection

Reason for action
plan based on
opportunity and risk

Non-financial KPIs

Number of training
sessions on universal
service

Target values

Once a year
(Takarazuka Grand Theater,
Tokyo Takarazuka Theater,
Umeda Arts Theater)

Scope

Hankyu Corporation
Umeda Arts Theater

FY2022 Actual record

Takarazuka Grand Theater:
twice a year
Tokyo Takarazuka Theater:
once a year
Umeda Arts Theater:
once a year

To expand the customer base for the Takarazuka Revue and other theatrical performances by offering more opportunities to see productions andcreating accessible theaters, which means safe, comfortable attendance no matter what a person’s needs—whether disabilities or other physicalconditions—plus language accessibility for guests from abroad.

•P rovide opportunities for children
to experience the natural appealof baseball through the Tigers
Academy*¹

Number of baseballschool classes hosted
by the Tigers Academy

Maintain 60 or more classes
into the future
Note: U pdated from thefiscal 2022 target of
50 classes or more

Hanshin Tigers
Baseball Club64 classes

To promote baseball by developing women’s baseball and by training youth as the next generation of good athletes, thereby expanding the fanbase for professional baseball ctively provide opportunities•A
to school groups to attend
performances of the Takarazuka
Revue•H old events for youth such as
kids’ seminars•H old lectures and seminars led
by Takarazuka Revue alumnae incollaboration with the media•H old series of Takarazuka
Kodomo Athene*² classes at the
Takarazuka Music School

Number of students/
children who attended
a performance andrelated program

Over 60,000 (annually)

Hankyu Corporation
Umeda Arts Theater
Takarazuka Live Next
Takarazuka Music
SchoolApprox. 25,000 (attendeesof performance/related
program, Takarazuka
Music School candidates,
Takarazuka Kodomo
Athene students)• To provide opportunities for youth to have contact with the performing arts and contribute to cultural education, including fostering a richimagination and artistic sensibilities• To give dreams to children by promoting the appeal of the Takarazuka Music School and supporting the fulfillment of their dreams through astrong school curriculum, thereby contributing to the cultivation of young talent• Hold performances of the
Takarazuka Revue outside of the
Osaka and Tokyo areas• Offer live viewing at movie
theaters or other venues andlive stream to mobile devices,
employing digital technologies
and delivery services• Stream video using Takarazuka
Sky Stage*³• Stream video using
YouTube, etc.

Total number ofviewers of theater
performances throughlive viewing and live
streaming, participantsin Takarazuka Sky
Stage (households),
and YouTube channel
subscribers

Over 1.2 million people(FY2026)
Note: U pdated from thefiscal 2022 target of
900,000 people or
more

Hankyu Corporation
Takarazuka Creative
Arts
Takarazuka Stage
Takarazuka Music
SchoolApprox. 1.12 million
people•T o get people to become more familiar with the Takarazuka Revue in many other parts of Japan using advanced digital technologies even if they
are unable to get to a theater, thereby creating more opportunities for people to have contact with the performing arts•P
 romote the appeal of the Takarazuka Music School to all parts of Japan, and by fostering the dream among children of performing on stage, help
build a society that encourages dreams and ambitions•C onvert Hanshin Koshien Stadium
lighting to LED lighting for night
games and placement around thestadium, utilize solar panels on
the roof known as “Ginsan,” andhold “carbon offset” games•S witch to the use of biomass
packaging material at food stalls
and take steps to reduce plastic
checkout bags
• Implement the collection andrecycling of plastic cups

Usage rate of nonplastic food packaging

Pro baseball/high school
baseball games: 70% each(2030 season)

Plastic cup collectionrate

70% (2030 season)

Hanshin Electric
Railway
Hanshin Tigers
Baseball Club
Wellness Hanshin

Pro baseball: 47%
High school baseball: 56%(2021 season)

29% (2021 season)

Carry out environmental measures at Hanshin Koshien Stadium and comprehensively publicize those efforts, thereby contributing toward theachievement of a carbon-neutral, circular society*1 T igers Academy: a school business established in fiscal 2019 to instruct children on how to play baseball or how to dance*2 Takarazuka Kodomo Athene: a school run by employees of the Takarazuka Music School that teaches singing, ballet and classical Japanese dance to girls from4th to 8th grade (40 students/year)*3 Takarazuka Sky Stage: a service for viewing public performances and original programs featuring Takarazuka Revue stars via CS broadcasts and cable TV

65

Hankyu Hanshin Holdings Integrated Report 2022

Close-Up ▼︎

Reason for action
plan based on
opportunity and risk

Action plan• Train theater attendants toimprove their customer service
skills•P rovide multilingual support using
communication tools, etc.
(English, Chinese, Korean)• Improve/renovate facilities andsignage•E xplore the introduction of newservices using cutting-edge
technologies

Creating Real Value:
Our Story

ProfileClose-Up

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Aiming to Maximize the Drawing Power of Content

In the entertainment business, we will continue making efforts to improve services and foster the next generation so that
we can offer more customers dreams and excitement while enabling safe, comfortable access for everyone.

Offering Dreams and Excitement to as Many Customers as Possible
In the stage business, we have been improving theaters so that customers with disabilities can relax and enjoy the theater,such as by adding new ostomate-compatible multifunctional toilets in the Takarazuka Grand Theater and the Umeda Arts
Theater Main Hall. The Act for Eliminating Discrimination against Persons with Disabilities went into effect in Japan in 2016,
calling for the elimination of discrimination against people with disabilities and reasonable accommodation to be provided.
In light of the need to further promote such improvements, we have made advances in a number of services.
Support for guests with hearing impairment to better enjoy musical performances
As part of that effort, In June 2021 we began lending hearing-impaired guests tablets to support
their appreciation of Takarazuka Revue performances at various theaters. The tablets contain thelibretto and other data, and can be used during the performance. The program has been popular,
and since its start the number of repeat users among theatergoers has been on the rise.
Enabling access for more customers at ease upon attendanceThis service has been recognized by the Agency for Cultural Affairs, the Ministry of Health, Labourand Welfare, and other public organizations as an example of a pioneering initiative by a private
theater. Additionally, to offer accessibility for more customers, a new page on the official
Takarazuka Revue website introduces the rental of support tablets and other assistive items foruse in the theater. We will continue to introduce new services to improve the theater experience—
offering dreams and excitement to as many customers as possible.

Raising the Next Generation on BaseballIn the sports business, the Tigers Academy was opened in April 2018, consisting of a baseball school and a dance schoolfor preschool and elementary school children.
For the healthy growth of children and to foster future players
The Hanshin Tigers runs the baseball school, aiming to expand the number ofplayers in the future and the fan base for the team. The other aim is to encouragebasic physical development in children, including their motor coordination, forhealthy mental and physical growth. The school is coached by former players
from the Hanshin Tigers and current players from the Hanshin Tigers Women’s
team. The school is working to develop practice drills and improve instructional
methods to make baseball more accessible and fun for kids.
The dance school features current and former Tigers Girls—the Hanshin
Tigers’ official fan service members—as instructors who teach many kinds ofdance skills, starting from basic cheerleading techniques. Performances areheld at the stadium grounds prior to official Hanshin Tigers home games and athalls regularly, providing authentic experiences and nurturing the next
generation of cheerleaders.

Hankyu Hanshin Holdings Integrated Report 2022

66

Creating Real Value: The Processes

Business Strategy

Information andCommunication
Technology
We contribute to the development ofsociety through information andcommunications technology.

■ Basic Policies

The broadcasting and communications business will see greater
opportunity as larger numbers of people subscribe to cable TV that includes❶ Information Services
Strengthen profitability power in existing businesses, bring intechnologies that are lacking through outside partnerships,
integrate with the Company’s own products, and resolve societal
issues inside and outside the Group to co-create a new future.

internet service. As more people engage in remote work, needs will grow fortechnological advances in telecommunications and data centers to meet
anticipated demand growth.
The market for the safety and education business is likely to continue❷ Broadcasting and Communications

growing as parents and guardians take increasing interest in our child safety

Further expand broadcasting and telecommunications
networks and diversify their uses to broaden our presence
as a regional infrastructure provider and provide reliablecommunications services over the long term.

service that monitors children’s journeys to and from school. As programmingclasses became compulsory in elementary schools, the market for our STEAM
education* will also take hold.

❸ Safety and Education
Offer peace of mind to people in many ways through originalideas and cutting-edge technologies (IoT, AI, drones, AR/
VR, 5G, etc.), and provide quality education to children(tomorrow’s leaders) that is a step ahead of what is neededin society.

In the information services business, internet-related business remained

Revenues from operations (left axis)

Operating income (right axis)(¥ billion)(¥ billion)
20

80

53.5

58.6

58.1

59.2

63.9

15
10

40
20

Fiscal 2022 Review of Operations
More internet subscribers have led to increased revenues
and income in the information services business■ Revenues and Income

60*STEAM Education is an approach to learning that provides an integrated
education across the subject areas of Science, Technology, Engineering,
the Arts and Mathematics aimed at solving real-world societal issues aspart of the learning process.

5.3

5.6

5.6

2019
Results

2020
Results

2021
Results

5.9

5.9

5
0

0
2022
2023
Results (Estimate)(FY)

Note: The anticipated full-year results for fiscal 2023 are based on
information announced on May 13, 2022.

strong and the number of subscriptions to our high-speed email distribution
service rose steadily. In response to new demand in transportation systems,
we have been pursuing cutting-edge technologies, including conducting
verification testing of AI and local 5G for detecting abnormalities in equipment.
In the broadcasting and communications business, amidst increased
telecommunications demand due to the expansion of remote working
situations, we expanded steadily, working to provide fiber-to-the-home (FTTH)
service for high-speed internet.
In the safety and education business, we saw a steady increase insubscribers to the Mimamorume school route email notification service, andprogramming classes in elementary school have become compulsory,
resulting in a steady increase in the number of students in our ProgLab robot
programming classes for children.
Overall, both revenues from operations and income increased over theBusiness Environment

previous year.

Markets are expanding in all business areas astechnological innovations unfold

Summary of the Medium-Term Management
Plan and Outlook

Strong growth is expected in the market for information services as companies
are expected to continue investing in digital transformation and adapting to

67changes brought on by the pandemic. In the transportation sector in particular,

Expanding existing businesses, responding to new demand,
including for DX, and aiming for continued growtha heightened interest in railway safety and security is expected to boost needs

In the information services business, we will be steadily growing our existingfor station platform safety and in-train security solutions.

business and responding to accelerating demand for digital transformation,

Hankyu Hanshin Holdings Integrated Report 2022

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

For the period of the Medium-Term Management Plan, operating income ismoving ahead with measures adapted to a new normal.
In the broadcasting and communications business, we will respond to the

expected to increase as a result of growth in the information services businessincrease in demand for telecommunications as remote work proliferates,(including M&As) and the expanding scale of the broadcasting andworking to acquire and retain more customers in order to achieve stablecommunications business.
In fiscal 2023, we anticipate increased revenues from more subscriptions

growth and higher profits.
In the safety and education business, we aim to expand the Mimamorumein the information services business, but the cost of sales accompanying theservice into the Tokyo metropolitan area and extend the franchising of theincrease in revenue will also rise, along with personnel costs associated with

ProgLab robot programming classes for children, further increasing the scale

the business expansion, so that we expect about the same level of operatingof the business.

income as in fiscal 2022.

Major Non-Financial KPIs and Specific Efforts Based on Priority Issues for Sustainable Management(Information and Communications Technology Business)
Priority issues

Reason for action
plan based on
opportunity and risk

Thriving
communities

Reason for action
plan based on
opportunity and risk

• Strengthen efforts aimed atgetting local authorities toenter into an agreement on
disaster preparedness in the
Kyoto-Osaka-Kobe area andTokyo metropolitan area

Reason for action
plan based on
opportunity and risk

Number of local
authorities to sign adisaster preparedness
agreement

Target values―(monitoring actual
record)Scope

Bay Communications
Hanshin Cable Engineering

FY2022 Actual record
Bay Communications:
4 local authorities(agreements have alreadybeen signed with allmunicipalities in the sales
area)
Hanshin Cable Engineering:
15 local authorities•T o respond rapidly and appropriately when a disaster occurs as a local telecommunications infrastructure provider, thereby contributing to thesafety and security of local residents•T o strengthen responses to local government needs (disaster preparedness and mitigation, crime prevention, etc.) in preparation for expanding
the BWA business*¹•U se the Mimamorume*²
school route safety tracking
system as the core of our
security business to expand
GPS services as services thatdifferentiate us and enhance
our competitiveness•E xpand the Machinaka
Mimamorume*³ service
for city residents, anopportunity for using our
BWA business

Number of local
authorities to which
we contract GPS
service and Machinaka
Mimamorume andother safety systems―(monitoring actual
record)Mimamorume

GPS service contracts:
43 local authorities
Machinaka Mimamorume:
6 local authorities• To help raise the value of line-side areas by responding to increased interest in safety and security• To utilize the Group’s wireless and wired communications networks, external lines, and construction expertise for expanding services• Acquire external certification
for information security(PrivacyMark, ISMS*⁴)

RobustgovernanceNon-financial KPIs

Close-Up ▼︎

Safe, reliableinfrastructure

Action plan

Status of acquisition of
external certification
for information security(PrivacyMark, ISMS)―(monitoring actual
record)Bay Communications
BAN-BAN Networks
Hanshin Cable Engineering
Itec Hankyu Hanshin
Mimamorume
Himeji Cable Television

PrivacyMark certification: Bay
Communications, BAN-BAN
Networks, Hanshin Cable
Engineering, Itec Hankyu
Hanshin, Mimamorume, Himeji
Cable Television
ISMS certification: Itec Hankyu
HanshinTo ensure the secure handling of personal information and electronic data as an information and communications technology company tostrengthen customer trust in the company*1 BWA business: Broadband Wireless Access system*2 Mimamorume school route email notification service: a service that links school gate sensors and IC tags in children’s school backpacks for tracking whenchildren arrive or leave school, providing notifications by smartphone app or email*3 Machinaka Mimamorume: a service that allows family members with a beacon tag to receive notifications by smartphone app or email when the tag passes
a location such as a school or street intersection where a beacon receiver is set up*4 ISMS: Information Security Management System

Close-Up

Expanding the Regional Broadband Wireless Access (BWA)
Business to Provide Infrastructure for Safety and Security

As a telecommunications infrastructure provider in the broadcasting and communications business, we are working to expand our regional BWA
business to contribute to the safety and security of local communities. Broadband Wireless Access networks can be used to provide high-speed
internet service and enable local governments to implement services that protect the safety and security of their communities. The system links
surveillance cameras installed along elementary school walking routes, in parks, on roads, along rivers, and in other areas, connecting them to city halls andother offices to ensure the safety of children throughout the community. It also helps in preventing crime and has proven useful in quickly resolving incidents
and accidents. Plus, the ability to monitor rivers in the event of heavy rains will help in emergencies with disaster mitigation measures. Our Group companies
are promoting the expansion of BWA, and in the Keihanshin area a total of 24 municipalities have obtained licenses as of June 2022.

Hankyu Hanshin Holdings Integrated Report 2022

68

Creating Real Value: The Processes

Business Strategy

Travel
We create travel itineraries that reflect
customers’desires

Fiscal 2022 Review of Operations■ Basic Policies

Improved profitability despite the continued impact of
COVID-19❶ Strengthen competitiveness of travel packages
Strengthen domestic travel/Strengthen products other thanlow-cost offerings/Win over new customers/Strengthen
collaboration with local areas

For a second year running, the business climate has remained
extremely difficult. Business was severely affected by the
pandemic, with numerous tour cancellations over the year in❷ Strengthen management baseStrengthen non-travel business/Improve efficiency of
attracting customers/Streamline administrative work

the international travel division and prolonged sluggish
demand in the domestic travel division. To improve profitability,
we focused on taking on contracts to run COVID-19 recovery■ Revenues and Income

accommodation

Revenues from operations (left axis)(¥ billion)
80

20
0

(¥ billion)
20

60.4

60
40

Operating income (right axis)
160

35.5
1.8

33.8

provideother

non-travel

services. Through these efforts we were able to play a role inmaintaining socioeconomic activity during the pandemic.
In addition to these efforts, and due in part to the AccountingStandard for Revenue Recognition and other standards being

10

applied in fiscal 2022, operating revenues increased and5operating income improved over the previous year.

12.0

2020
Results

and

15

0.2

0

‑7.4
2019
Results

facilities

2021
Results

‑5.7

‑1.9

2022
2023
Results (Estimate)

‑5
‑10

(FY)

Note: Since ﬁscal 2022, the Accounting Standard for Revenue Recognition has been
applied, and the presentation of operating revenues from travel packages
has changed from net to gross amounts.

Note: The anticipated full-year results for fiscal 2023 are based on
information announced on May 13, 2022.

Summary of the Medium-Term Management
Plan and Outlook
Responding to a business climate changed by
the pandemic and strengthening the business baseIn our core business of group tours led by a tour guide, we will
work to establish a predominant presence, diversify our travel

Business Environment

long terms.
To fortify our income and expenditure structure, we will

Travel demand is expected to recover as the COVID-19
pandemic abates

provide support services to local governments and expand

People are slowly beginning to travel again, starting with

our non-travel businesses through other means. We will also

nearby trips, after movement had been severely constrained

work to improve work efficiencies using digital technologies,

by health concerns during the pandemic. As the situation

including expanding customer bookings via the internet.

stabilizes further, we expect to see a recovery in travel

For the period of the Medium-Term Management Plan, indemand, not only with the resumption of travel in Japan but

line with an expected recovery in international travel demand,

the world over.

we anticipate operating income to return to pre-pandemic

During the pandemic, we received orders from local

levels in fiscal 2026.

governments to operate COVID-19 recovery accommodation

In fiscal 2023, a degree of recovery from the impact of the

facilities, a business other than travel. Leveraging suchpandemic is ushering in a return of domestic travel demand,

relationships with local governments, we believe there iswhich will mean better figures in terms of operating revenue

significant opportunity for business in providing solutions toand operating income as compared to fiscal 2022.

new problems and needs.

69

models, and capture new customers over the medium andHankyu Hanshin Holdings Integrated Report 2022

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Major Non-Financial KPIs and Specific Efforts Based on Priority Issues for Sustainable Management (Travel Business)
Priority issues

Non-financial
KPIs

Action plan
• Preparation of serious-accident response manualand other manuals (as necessary revising BCPs
which stipulate response to natural disasters,in light of the intensification of natural disasters
due to climate change)•E mployee and supplier training in safe
operations• Information dissemination on safe operations• Supplier assessments

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

Reason for action
plan based on
opportunity and risk

Reason for action
plan based on
opportunity and risk

HankyuTravelInternational

Maintain at zero

FY2022 Actual record

0 incidents

To respond rapidly and appropriately to an accident when operating tours or upon the occurrence of a natural disaster, thereby helping to build
customer trust and bolster our brand value• Plan tours that promote local areas incoordination with local governments (longstay domestic travel, infrastructure study tours,
community-based tours that start and end in
localities, etc.)• Hold seminars through Hankyu Tabikotojuku*¹
that promote regional and cultural development• Support regional development through General
Incorporated Association Chiiki Mirai Kikaku

Number ofcollaborating
local
governments*²

250 per year (FY2024)
Note: Updated from the target
figure of 70 for fiscal 2022

HankyuTravelInternational

187 local governments

To strengthen mutually beneficial collaboration with local governments and actively promote the appeal of the important elements of travel—localities
and culture—thereby contributing to regional revitalization• Conduct questionnaires of tour participants•E xpand customer hot-line/customer centersystem• Improve quality through tour monitoring by
employees and checks during the first run of atrip
•H
 old meeting on safe international travel locally• Improve response through a call center andWeb-based inquiry service

Robustgovernance

Scope

Close-Up ▼︎Life designs for
tomorrow

Number ofaccident
reportsof serious
culpable
incidents

Target values

Satisfaction
rate based onquestionnaires• Satisfaction rate (FY2031)
International/with guide: 90%
International/without guide:90%
Domestic/overnight: 85%
Domestic/day trip: 85%

HankyuTravelInternational• Customer satisfaction
International/with guide*International/without guide*
Domestic/overnight: 84%
Domestic/day trip: 82%*No international tours due tothe COVID-19 pandemic

To improve satisfaction rates by directly hearing customers’ voices and meeting diversifying needs with regard to the undefinable product of travel,
thereby further boosting product value*1 Hankyu Tabikotojuku: lectures and workshops held by Hankyu Travel International in Tokyo, Osaka, and other parts of Japan to share helpful tips on travel
and information that makes travel more enjoyable*2 Starting in fiscal 2022, not only local governments collaborating on projects in the relevant fiscal year are included but also municipalities that are
participating in ongoing discussions for regional development projects.

Close-Up

Aiming to resolve regional issues in collaboration with local governments

In the travel business, we aim to provide sustainable regional revitalization by creating new styles of travel in collaboration with local
areas to meet the new times, and by discovering and developing new attractions for travelers, which will help to resolve regional issues.
Because of the pandemic, only online tours were promoted in fiscal 2022, but starting in fiscal 2023, we resumed working with local
governments to attract visitors through in-person tours. In three prefectures in the Hokuriku region (Toyama, Ishikawa, and Fukui), weare planning tours with special content that highlight the unique characteristics of each area. Tourism-promoting events at Hankyu Travel Internationaland campaigns on social media are being held simultaneously.
Looking ahead, we will contribute to regional revitalization through stronger collaborations with local governments,
working to develop and promote new tours that attract visitors and allow people to discover and fully enjoy the charmsof each region.
Expansion of online planning◦Tabi Coffret (introduce islands, etc.)◦Online tours (Okayama Bicchu Local Sake Train, etc.)

Promotions using retail branches◦Hankyu Tabikotojuku (Japan heritage sites, historical railways, etc.)◦PR at Hankyu Travel International Umeda branch(3 Hokuriku prefectures, Wakayama, Jinsekikogen, etc.)

Utilization of regional resources◦Use local products, business to promote farm stays, long-term stays (workations, etc.),
Takarazuka Revue

Holding joint events◦Use local railways (Kisuki Line, Yakumo train, etc.), Sekigahara-themed travel, Lantern
Festival (Fukui, Hyogo), Original fireworks (Wajima, Kochi)

Industry-Government-Academia
collaboration◦Tourism trade school (Chiba), junior college (Kyoto), university (Kobe)

Inbound◦PR for sustainable tourism content and PR for wide-area excursion products

Hankyu Hanshin Holdings Integrated Report 2022

70

Creating Real Value: The Processes

Business Strategy

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

forwarder expanding, not as a freight carrier but for its ability to■ Basic Policies

make optimal proposals to customers centered on shipping
arrangements that take advantage of a global network. The role of❶ Reform to establish a balanced business portfolio

Japanese forwarders in particular is likely to take on even greater◦ Strengthen air freight, sea freight, and logistics services
businesses globally

importance for the high-quality, high-value-added comprehensive❷ Expand scale of business and strengthen competitiveness◦ Strengthen sales capabilities globally◦ Maximize synergy with the Seino Holdings Group

logistics services we provide.

Fiscal 2022 Review of Operations
Preventing the halt of distribution as an essential industry,and efforts to increase operating revenues and income❸ Fortify systems to ensure robust global governance

As production and consumption began to recover gradually from the❹ Pursue initiatives in new growth fields

impact of the pandemic, ongoing shortages of airfreight flights anddisturbances in the ocean transport market led to continued supplydemand imbalances.

■ Revenues and Income

In such circumstances, we worked to secure as much

Revenues from operations (left axis)(¥ billion)

Operating income (right axis)(¥ billion)

143.3

150

15

120.0
100

90.0

76.2

85.6

10

8.0

50

5

4.5
2.4
2019
Resultsalso worked to steadily capture customer demand. These efforts
expanded the scale of our freight operations, leading to year-on-yearincreases in both revenues from operations and operating income.
Additionally, we have been working to expand our network withnew business bases in the ASEAN region, strengthen our logistics
business, and further expand our global network.

2.3
0.2

0

transportation space as possible by arranging charter flights. We

2020
Results

0
2021
Results

2022
2023
Results (Estimate)(FY)

Note: The anticipated full-year results for fiscal 2023 are based on
information announced on May 13, 2022.

Summary of the Medium-Term Management
Plan and Outlook
Expanding the scope and volume of items handled andpushing structural reforms for sustainable growth
To achieve our Long-Term Vision, we will continue to expand theBusiness Environment

scale of our business and strengthen our competitiveness while

The role of global forwarders will take on even greater
importanceand logistics operations.

The global impact of the pandemic caused supply-demandturmoil in the logistics market gradually settles, we anticipate a

imbalances and rising freight charges in both air and sea freight due

return to levels prior to the impact of U.S.-China trade friction.

to reduced airfreight service, container shortages, and port

Through fiscal 2026 we will take steps to increase operating income

congestion. These conditions are expected to gradually level out

by expanding the volume of items handled.

going forward.

71

striving to balance our portfolio by reinforcing our ocean transport
For the period of the Medium-Term Management Plan, as the

In fiscal 2023, we anticipate that the effects of turbulence in air

Although this situation is temporary, the world’s population isand sea freight forwarding as well as supply-demand imbalances will

expected to continue rising, and supply chains are undergoing rapid

gradually ease, but will still result in lower revenues and lower

change. In the medium and long term, we see the role of the global

income year on year.

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
The Processes

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Foundations

Financial Section andCorporate Data

■ 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 haveestablished a logistics hub that combines international transportation, logistics, and domestic transportation, and allows
us to oﬀer a comprehensive range of seamless transportation services. Since the facility s opening, we have acquired newclients and the volume of goods handled is steadily growing.
*A company of the Seino Holdings Group, which entered into a capital and operational tie-up with Hankyu Hanshin
Express in 2018.

Amsterdam

Rotterdam
Brussels

LondonParis
Dusseldorf
PragueMoscowFrankfurt

Number of locations: 47 inJapan, 144 outside Japan
Detroit(as of September 1, 2022)
Toronto
New Jersey● Local subsidiary
New York● Branch/Oﬃce
BostonHong Kong
Beijing
Guangzhou

Delhi

Milan

Ahmadabad

KampalaEntebbeNairobiMombasa

Johannesburg

Manesar
Bawal

Hai PhongHanoi
Bangkok

IncheonBucheonShanghai

Dubai
Taipei
Chiang Mai
Mumbai
DanangPune
YangonSricity
ChennaiBangalore
Coimbatore
Jakarta
ButterWorthTanjung Priok
PenangBekasi

Kuala Lumpur

DurbanPort Klang

Cape Town

Strengthening business development in
AfricaIn April 2018, we acquired Intraspeed South Africa(Pty) Ltd., a freight forwarder, as a subsidiary; wealso acquired Intraspeedʼs two companies in Kenya
and Uganda as subsidiaries. Today, we continue toreinforce our operations in Africa.

SeattleSan Francisco

Seoul

Singapore

KuantanJohor Bahru

ChicagoCincinnati

Los Angeles
Kaohsiung
Taichung

McAllenMonterrey

Bajio
Queretaro

Miami

Atlanta
Dallas● Representative oﬃce

Mexico City

ManilaCaviteClark
LagunaCebu

Davao
General Santos

Sao Paulo

Laem Chabang
Binh Duong
Ho Chi Minh
Phnom Penh

Expansion of our Asian network, rollout of logistics
centers

Strengthening our business inNorth and Central America

In addition to new warehouses in Indonesia (2016) and Singapore(2017), we have opened new warehouses in India, Vietnam andMyanmar, and established an oﬃce in Davao City, Philippines. In theseand other ways we are further enhancing our logistics structure andexpanding our global network in growth markets.

We are expanding our warehouses in
the U.S.A. and our locations in Mexico,and promoting measures to capture
the vigorous demand in logistics.

Major Non-Financial KPIs and Specific Efforts Based on Priority Issues for Sustainable Management(International Transportation Business)
Priority issues

Action planSafe, reliableinfrastructure
Reason for action
plan based on
opportunity and risk

Reason for action
plan based on
opportunity and risk

Rate of existenceof BCP

Target values

100%

Scope

FY2022 Actual record

Hankyu Hanshin Express
Hankyu Hanshin Logipartners

Preparation completed byboth companies

To build systems that prevent the stoppage of distribution as an essential industry, even if an accident or natural disaster occurs, thereby increasing
trust in the business and benefiting society• Improve the quality of customs
clearance services

Rate of customs
errorsAbout 0.1% maintained,
which is lower than theindustry average (0.3%)

Hankyu Hanshin Express

0.05%

To pursue protective measures at ports and airports as a customs broker, thereby helping to maintain safety and security in society

Close-Up

Close-Up ▼︎

Safe, reliableinfrastructure• Prepare a BCP

Non-financial
KPIs

Efforts to Improve the Quality of Customs Clearance Services

In the international transportation business, we have long been involved in air, sea, and land transport, plus warehousingthat includes storing and processing customer cargo for shipment, not to mention import/export customs clearance services.
Some cargo for import into Japan can have an adverse effect on the industry, economy, hygiene, or public safety in Japanand are subject to restriction by Japanese laws and regulations. Items for export, similarly, must be approved from the perspective of
maintaining international peace and security, ensuring domestic demand, and meeting international agreements.
Soon after its establishment in 1950, Hankyu Hanshin Express became licensed to do customs clearance work as it does today. Using
registered customs specialists, it works in accordance with the Customs Brokerage Act, Customs Act, and other laws to declare imports
and exports on behalf of customers, contributing to the maintenance of safe and secure economic activity.
Currently, we are certified as an Authorized Economic Operator (AEO Customs Broker and Warehouse Operator). We will strengthen
our security management and compliance systems to further improve the quality of customs clearance.

Hankyu Hanshin Holdings Integrated Report 2022

72

03

Creating
Real Value:
The Foundations
CONTENTS
75
83

Directors and Audit & Supervisory
Committee Members

85

Audit & Supervisory Committee
Member Tripartite Discussion

89

S Empowering individuals

91

E

94

73

Hankyu Hanshin Holdings Integrated Report 2022

G Robust governanceSpecial Feature ②

Helping to Develop Communities
with Low Environmental Impacts
Environmental protection

Hankyu Hanshin Holdings Integrated Report 2022

74

Creating Real Value: The Foundations

G

Robust governance

Governance

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

Basic Approach
The Company aims to remain a company that customers and other stakeholders trust. To this end, the Company is strengthening
and increasing corporate governance by heightening the transparency and soundness of business management, complying with
relevant laws and regulations, and ensuring appropriate, timely disclosure.
Reflecting this basic approach, the Company has established the policies below with a view to adhering to the principles of our
Corporate Governance Code, sustaining growth, and enhancing corporate value over the medium to long term.
(1) We shall respect shareholders’ rights and ensure equality.

(2) We shall take into consideration the interests of shareholders and other stakeholders and cooperate with themappropriately.

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

(4) We shall ensure that the Board of Directors performs its roles and duties appropriately and ensure advanced oversight anddecision making.

(5) We shall have constructive dialogue with shareholders with a view to sustaining our growth and enhancing corporate value
over the medium to long term.

■ Corporate Governance System
General Meeting of Shareholders
Corporate
GovernanceCommittee

Consultation

Compensation
Committee

Findings

Appointment/Dismissal

Appointment/Dismissal

Appointment/Dismissal

Directors(excluding Audit &Supervisory Committee
members)

Board ofDirectors

Audit & Supervisory Committee

Audits, etc.

(Audit & Supervisory
Committee members)

Call/Report on
execution situation

Accounting audit
ReportDirectors

Selection/Dismissal/Supervision
ReportRepresentative Director
CallParticipate(as observer)Group Management Committee

ReportAccounting
Auditors (CPAs)
Staff of Audit &Supervisory
Committee
Group
Auditing Division

Audit

Participate

Group Companies*The Hankyu Hanshin Holdings Group takes practical steps to enact all of the principles stipulated in the Corporate Governance Code. For examples of specificaction and other items relating to corporate governance, please refer to the Corporate Governance Report in the sustainability section of the Group’s website.
https://www.hankyu-hanshin.co.jp/download/sustainability/materiality/corporate/governance/info_governance.pdf (Japanese only)
Independent directors Male ●Board of Directors (12 members)

Corporate Governance Committee (6 members)

Chairman of
the Board

Kazuo Sumi

Female ●Chair

TakehiroSugiyama

Masao Shin

Yasuo
ShimadaYoshishige
Shimatani

Naoya Araki

Noriko Endo
(Academic)

Yuki Tsuru(Attorney atlaw)

Mitsuyoshi
Kobayashi(Manager)

Sumi

Audit & Supervisory Committee (3 members)

Tsuru

Kobayashi

Komiyama

Takahashi

Compensation Committee (6 members)

Chair

Masayoshi Ishibashi

Endo

Chair
Michiari Komiyama(Attorney at law)

Yuko Takahashi(Doctor & Academic)

Sumi

Endo

Tsuru

Kobayashi

Komiyama

Takahashi(See pages 83–84 for more details about Directors and Audit & Supervisory Committee members.)

75

Hankyu Hanshin Holdings Integrated Report 2022

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Foundations

Creating Real Value:
The Processes

Financial Section andCorporate Data

receives reports. Moreover, to undertake preliminary reviews theGovernance Structure

Company has established a Group Management Committee,
which includes representatives of the Group’s core businesses.
Further, to ensure transparency in the appointment anddismissal of the Company’s directors and to facilitate coordination

Overview of Hankyu Hanshin Holdings’andthe Group’s Corporate Governance Structurewith outside directors, the Group has established the Corporate

Hankyu Hanshin Holdings, Inc. is a pure holding company, and the
conduct of operations is basically the responsibility of Group
member companies. Hankyu Hanshin Holdings’principal role issupervision and oversight of the entire Group—meaning thatthese 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,or report to, Hankyu Hanshin Holdings before taking actions that
affect the Group’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 andGovernance Committee, which comprises the chairman of the
board

(or

the

president,

in

the

chairman’s absenceor

unavailability) and outside directors who are independent of theCompany, and is chaired by one of the outside directors.
Moreover, to ensure that concrete decisions regarding theamount of director compensation (excluding that of members of
the Audit and Supervisory Committee) under the responsibility of
the Board of Directors, are made based on objective andtransparent

procedures,theCompanyhasestablishedaCompensation Committee which comprises the chairman of the
board

(or

the

president,

in

the

chairman’s absenceor

unavailability) and outside directors who are independent of theCompany, and is chaired by one of the outside directors.
In addition, as part of efforts to strengthen its overallcapabilities, the Company is strengthening the governance offunding.

Measuresincludecentralizing

funding

under

the

Company, as a rule, and distributing funds to operating companies
within the limits set out in business plans that the Company has
approved.

■ Recent Efforts to Strengthen Corporate Governance

FY2016

Corporate Governance Committee established• Charged with ensuring transparency of corporate director appointments and dismissals and facilitating coordination with outside officers.
(Held twice a year)

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 theappropriateness of its handling of its proceedings.
(Starting in fiscal 2021, interviews are preceded by questionnaires for more effective assessment.)

FY2018Abolition of senior advisors system

FY2019Abolition of anti-takeover measures and Compensation Committee established• Charged with ensuring that the objectivity and transparency of procedures relating to decisions regarding board members’remuneration,
including amounts. (Held once a year)

Review of compensation system
FY2020

FY2021

FY2023• Stock-based, performance-linked stock compensation system (paid into trust) introduced for the chairman and president (representative
directors, since fiscal 2023) in order to further motivate them to enhance the Company's corporate value and business performance, as
well as to enhance shareholder value.

Change in legal status regarding audit function• Became a“Company with an Audit & Supervisory Committee”as part of efforts to bolster the Board of Directors’oversight function andenhance corporate governance.

Outside directors made chairs of both the Corporate Governance Committee and Compensation Committee■ FY2023 Data

41.7%

25.0%

83.3%

Proportion of independent
outside directors
on the Board of Directors

Proportion of
female members on
the Board of Directors

Proportion of independent outside directors
on the Corporate Governance Committee
and Compensation Committee

Hankyu Hanshin Holdings Integrated Report 2022

76

Creating Real Value: The Foundations
Priority Issue 6

Robust governanceMore Transparent Management andEffective GovernanceManagement Organization for Decision Making,Execution, and Oversight of Matters Related toCompany Management
Board of Directors and Directors
The Board of Directors enhances governance of the entire Groupand oversight of respective companies by: retaining the authority
to approve decisions regarding the Company and the Group’s
management policies and strategies, and the medium-term or
annual management plans of all core businesses; and requiring
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 12 directors, five of whom are independent
directors, including three women. Moreover, the 12 directors
include all three members of the Audit & Supervisory
Committee.*1, 2■ Membership of the Board of Directors, etc.
Maximum number of directors
stipulated in articles ofincorporation

No upper limit stipulated

Term of office stipulated inarticles of incorporation

1 year (2 years in the case of
Audit & Supervisory Committee
members)

Chairman of the board

Chairman

Number of directors

12

Appointment of outside directors

Appointed

Number of outside directors

5

Among outside directors, numberof independent directors

5*1 Quorum of directors: The Company’s articles of incorporation stipulatethat a quorum shall be reached with at least four directors and at least
three Audit & Supervisory Committee members.
*2 Criteria for appointment of directors: The Company’s articles ofincorporation stipulate that resolutions on the appointment of directors,
who are split into two distinct categories—Audit & Supervisory
Committee members and others—shall be passed with a majority ofvoting rights by shareholders in attendance, provided that those inattendance constitute no less than one third of all shareholders withvoting rights. The articles also state that resolutions shall not be
conducted by cumulative vote.

Audit & Supervisory Committee and Its Members
Of the Audit & Supervisory Committee’s three members, two are
independent directors. By selecting committee members whoare independent from the Company and have a high level of
specialist expertise, the Company endeavors to further ensure
sound decision making. We provide full backup to enable the
Audit & Supervisory Committee members to perform theirgovernance and oversight functions, for example by involving thefull-time member in the Group Management Committee andother meetings within the Group.

77

Hankyu Hanshin Holdings Integrated Report 2022

■ Membership of the Audit & Supervisory Committee
Audit & Supervisory Committee
Total committee members

3

Full-time committee members

1

Internal directors

1

Outside directors

2

Committee chairperson

Internal director

Directors and employees
assigned to aid the duties of
Audit & Supervisory Committee
members

Staff assigned exclusively
to this position

Corporate Governance Committee(voluntarily established committee that functions as anominating committee)
To ensure transparency in the appointment and dismissal of
directors and coordination with outside directors, the Corporate
Governance Committee comprises the chairman of the board (orthe president, in the chairman’s absence or unavailability) andoutside directors who are independent of the Company, and ischaired by one of the outside directors. The committee gives
advice about the selection of director candidates and thedismissal of directors (excluding Audit & Supervisory Committee
members) to the Board of Directors and on request, serves as aforum to provide information in such areas as the Group’s
finances to outside directors.

Compensation Committee (voluntarily established)
To ensure that the decision-making process for the amount ofcompensation paid to directors (excluding Audit & Supervisory
Committee

members)isobjective

andtransparent,theCompensation Committee comprises the chairman of the board(or the president, in the chairman’s absences or unavailability)
and outside directors who are independent of the Company, andis chaired by one of the outside directors. The committee gives
advice to the Board of Directors on the Company’s compensation
system on request.

Group Management Committee
The members of the Group Management Committee include fulltime directors (excluding Audit & Supervisory Committee
members)andexecutive

officersoftheCompany,

andrepresentatives of each of the Group’s core businesses. The
committee meets to deliberate and decide on the approval ofresolutions of the Board of Directors; the Group’s management
strategies and business plans; Group companies’ significant
investments; and significant Group management matters.

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Foundations

Creating Real Value:
The Processes

Financial Section andCorporate Data

■ Ensuring Effectiveness of the Board of Directors and Audit & Supervisory Committee
Attendance at meetings of the Board of Directors and Audit & Supervisory Committee, and Board of Company Auditors byoutside directors (FY2022)
Name

Position

Noriyuki Inoue
Noriko Endo
Yuki Tsuru
Junzo Ishii
Michiari Komiyama

Attendance (times attended/times held)

Statements at Board of Directors meetings, etc.

Board ofDirectors

Audit & Supervisory
Committee

Director

8/9

ーInstructive comments made from a corporate manager’s
perspective, based on a wealth of management experience

Director

9/9

ーInstructive comments based on a wealth of experience and knowledge
gained through research into public and government policy

Director

9/9

ーInstructive comments from a compliance perspective

9/9

11/11

Instructive comments from a management studies expert’s perspective

9/9

11/11

Instructive comments from a compliance perspective

Director and Audit & Supervisory
Committee member
Director and Audit & Supervisory
Committee member*The office of the Board of Directors assists outside directors and the office of the Audit & Supervisory Committee assists outside directors who are Audit &Supervisory Committee members; in particular, the office of the Audit & Supervisory Committee is staffed with dedicated staff. Moreover, the office of the Boardof Directors sends out materials relating to motions to be tabled at board meetings, in principle around seven days before the meeting date, as well as its otheractivities to enhance outside directors’ supervision and oversight functions.

Evaluation of the Board of Directors’ effectiveness

Compensation System

The Company conducts evaluations of the board’s effectivenessat the board meeting held in April every year.
A summary of the process and results of an evaluation of theeffectiveness of the Board of Directors conducted in fiscal 2022
is as shown below.

Compensation of Directors
Basic Policies
The Company’s compensation system for directors (excluding

1. Evaluation process

Audit & Supervisory Committee members) further motivates

In fiscal 2022, the board’s effectiveness was evaluated bythem to enhance the Company’s corporate value and businessconducting a questionnaire survey regarding the adequacy of theperformance,board’s composition and operations, followed by interviews with

Compensation

board members based on the questionnaire’s results.

compensation paid according to position and job responsibilities,

2. Evaluation results

and performance-linked stock compensation paid in trust to

As a result of the questionnaire and interviews, the board’s

representative directors.

composition and operations in fiscal 2022 were deemed to be*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.

adequate, and the evaluation concluded that the board was
effective and generally administered appropriately.
Conversely, it was suggested that information sharing about
issues facing core businesses and current circumstances could
be improved.
Taking this into account, a study will be carried out into how
to further improve the board’s oversight and decision-making.

Reasons for Adoption of Current Corporate
Governance System

as

as

to

comprises

well

two

enhanceshareholder

elements:

fixed

value.

monetary

Procedure
Based on the foregoing policies, to ensure that concrete decisions
regarding the amount of director compensation, which are theresponsibility of the Board of Directors, are made based on
objective and transparent procedures, the Company has

As described in the Overview of Hankyu Hanshin Holdings’ andestablished a Compensation Committee comprising the chairman

the Group’s Corporate Governance Structure on page 76, Hankyuof the board (or the president, in the chairman’s absence or

Hanshin Holdings, Inc. is a pure holding company, and theunavailability) and independent outside directors, and is chaired

conduct of operations is basically the responsibility of Groupby one of the outside directors. The Board of Directors makes

member companies. Hankyu Hanshin Holdings’ principal role iscompensation decisions after consultation with the Compensation

supervision and oversight of the entire Group—meaning that

Committee concerning the compensation system and content ofthese functions are separate from the conduct of Group

compensation.

businesses. In addition to this, the Company shifted to an Audit &multifaceted reviews of the individual compensation paid toSupervisory Committee set-up in order to reinforce that corporate

directors (excluding Audit & Supervisory Committee members),

governance structure and further enhance corporate value. The

including into the decision-making policy and whether it complies

shift was approved by a resolution at the 182nd annual Generalwith this. It has been determined that the Board of Directors acts

Meeting of Shareholders on June 17, 2020.

in accordance with this policy and fundamentally respects theThe

Compensation

Committee

carriesoutcommittee’s findings.
More information on this policy can be found in the Corporate
Governance Report at:https://www.hankyu-hanshin.co.jp/download/sustainability/
materiality/corporate/governance/info_governance.pdf(Japanese only)
Hankyu Hanshin Holdings Integrated Report 2022

78

Creating Real Value: The Foundations
Priority Issue 6

Robust governancecompanies. Specifically, each of the Group’s businesses audits

Other Efforts to Strengthen Governancecompliance with laws and internal regulations—and other priority
themes to be tackled—as well as risks peculiar to their own
businesses, based on both the Group Management Philosophy

Position regarding strategic shareholdings(particularly the Principles) and groupwide annual auditing

The Company acquires shares held for strategic reasons with apolicies and plans.

view to building relationships of trust with various stakeholders

To create a structure for ensuring appropriate operations, theand enhancing corporate value over the medium to long term byGroup vests auditors of each Group company with authority not

maintaining business relationships or strengthening collaborations

only in accounting but also in operational audits, and at the samewith partner companies and maintaining relationships withtime provides guidance to smaller Group companies on Board ofregional communities.

Directors’ resolutions for the creation of an internal control

Individual

strategic

shareholdings

arereviewedforsystem.

appropriateness each year by the Board of Directors, taking into

With regard to systems for “Evaluation and Auditing of Internal

account economic rationales such as dividend income. Where aControls over Financial Reports,” a section of the Financial

given holding is deemed no longer appropriate, it is sold

Instruments

progressively, with comprehensive consideration of factors suchappropriately by carrying out management evaluations on aas the Company’s financial circumstances and the influence ofconsolidated basis, in line with in-house rules.

stock sales on market conditions.

■ Strategic Shareholdings Held (Taking FY2016 final levels as 100)

andExchange

Act,

the

Company

responds

Basic Approach to Eliminating Anti-social Forces andthe Progress of its Development

100

We have a clear policy of thorough rejection of any involvement80with organized crime groups, companies connected withorganized crime groups, sokaiya racketeers, or other “antisocial

60

forces” that threaten the order and safety of civic society, and40

firm refusal of their unreasonable demands.

20

To ensure full awareness of this policy throughout the entire

0
2016

2017

2018

2019

2020

2021

2022 (end ofﬁscal year)

Abolition of anti-takeover measures

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.

After considering recent trends related to such measures andIn practice, we cooperate closely with lawyers, police, andchanges in the business environment, the Company has decided

other organizations, and all Hankyu Hanshin Holdings Groupto abolish anti-takeover measures that have already been set tocontracts contain clauses banning involvement with antisocial

expire at the conclusion of the General Meeting of Shareholders

forces.

held in June 2018.

We also share relevant information between Group companies,
maintain high awareness of issues through employee training,and participate proactively in community meetings and activities

Internal Control System asic Approach to Internal Control System andB
the Progress of System Development

pertaining to the elimination of organized crime and other
antisocial forces.
If an incident occurs, we take a pan-organization approach inresponse, bringing in the relevant in-house departments andteaming up with outside experts.

Recognizing the importance of ensuring that the business
operations of the Company are conducted in an appropriatemanner, we believe it is vital to have an internal control system
for the entire Group, and to revise it when deemed necessary.

Corruption Prevention and ComplianceIn particular, the Group has a robust structure for compliancefocused management, including a dedicated compliance office, a

We at the Hankyu Hanshin Holdings Group are constantly striving

Compliance Manual, and compliance training, all aimed at raising

to live up to the stakeholders’ expectations and become a good,awareness of compliance issues throughout the entire Group.

trustworthy organization. Our strong focus on compliance is one

As part of our whistleblower system, we have a Corporate
Ethics Consultation Desk for quickly bringing our attention to any
incident that may threaten our compliance-focused management.

Organizational Initiatives for Better Compliance

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

We have established a dedicated compliance office in thecommittee to determine how to respond.

Personnel and General Affairs Division to help bolster compliance

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

79of the pillars underpinning our efforts in this area.

groupwide by pursuing three main initiatives as set forth below.

dedicated staff and operates under the direct control of theMoreover, the Board of Directors conducts biennial reviews topresident. This division establishes regulations and conducts

monitor compliance with the Code of Conduct, mainly involving

internal audits of Hankyu Hanshin Holdings and its Groupquestionnaire surveys of employees.

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

1. Raising Awareness via the Compliance Handbook

3. Other Initiatives

The Compliance Handbook makes clear to all the Group’s officers

Should a risk become apparent through an ethics consultation,and employees that violations of law or social norms, or actions

and it be considered significant, a risk management committee isthat betray customer trust, are prohibited, and provides handy

convened to discuss and decide on appropriate responses.

examples of likely scenarios. In this way, the manual is part of oureffort to raise awareness of the importance of compliance.

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

Compliance Handbook Content

basis.

Hankyu Hanshin Holdings Group Management

Overview of Group Compliance

Philosophy
Mission, Values, and Principles

Hankyu Hanshin Holdings
Compliance for the Interest of
Shareholders･ No Inappropriate Accounting･ No Insider Trading

Compliance for the Interest of
Customers･ Customer Safety First･ Sincere Response to
Customers･ Observance of Rules･ Proper Treatment of Personal
Information･ Proper Disclosure･ Act as a Sensible Member ofSociety･ Proper Use of SNS

Compliance as a Member of Society･ Environmental Activities･ Social Activities･ Respect for Human Rights

Compliance for the Interest ofBusiness Partners･ Sincere Trading･ Proper Use of Intellectual
Property･ No Involvement with Anti-Social
Forces･ No Bribery or Excessive
Entertainment

In addition, we are setting up compliance promotion offices atcore Group companies and appointing “compliance leaders” at●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 in Workplace･ Satisfying Working Environment･ Clear Distinction Between Work
Spending and Private Spending･ Observance of Decision-Making
ProceduresCore companies
Compliance promotion oﬃce

Internal whistle-blowing, responsible forplanning and organizing seminars andother awareness-raising activities

Other Group companies
Complianceleaders

Liaise with compliancedepartments of corecompanies

Raising Awareness Among All Officers and Employees
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• New recruit training, training upon promotion

2. Corporate Ethics Consultation Desk
(Internal Whistle-Blower Procedures)• Training upon first appointment to director or auditor position

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.
Furthermore, the desk reports each year to the Board of
Directors on its operations; in fiscal 2022 it received fifty-threereports from throughout the whole Group.

■ Corporate Ethics Consultation Desk consultation ﬂow
Audit &
Supervisory
Committee
members

Consulter
Responds

Consultation
Desk

Reports• On-site training at Group companies

2. Communication• Compliance-related serials in Group magazines• Compliance-related e-mail newsletter featuring case studies
and updates regarding laws and regulations• Compliance-related information posted on the Group intranet

Thorough Corruption Prevention
As part of our corruption prevention measures, in May 2021, we
announced our agreement with the United Nations Global
Compact; we are pushing forward with corruption prevention
activities based on the compact’s tenth principle: “Businesses

Reports

Consults

at a Group affiliate• Collective training for Group companies’ compliance officers

should work against corruption in all its forms, including extortionand bribery.” Also, in March 2022, we announced our activities
President

Instructs

Investigates, calls for correction,
checks problem rectiﬁed

to prevent corruption (such as bribery, unfair
business practices, and insider trading) andformulated our Anti-Corruption Policy as asystem for promoting activities and dealing
with problems should they occur.

Departments/Group
companies

See the website for more details on our Anti-Corruption
Policy:https://www.hankyu-hanshin.co.jp/en/corporate/compliance.html

Hankyu Hanshin Holdings Integrated Report 2022

80

Creating Real Value: The Foundations
Priority Issue 6

Robust governance
exercise their voting rights. These include timing meetings to

Risk Management Structure

avoid scheduling clashes with other companies, using online
voting platforms, posting convocation and resolution notices

We have established a risk management structure to help

(including English versions) on our website, and improving themaintain the health of the Group’s management by preventing

voting experience for institutional investors.

risks from becoming reality, and at minimizing the damage if theydo. Specifically, the Group has established a dedicated risk
management office in the Personnel and General Affairs Division◦ Early sending of convocation notices for the General Meetingof Shareholders

to oversee groupwide risk management. The office is responsible

Notices of convocation for the General Meeting of Shareholders

for determining and analyzing pan-organizational risks, while

held in June 2022 were sent 21 days prior to the event (May 25,

business departments and group companies do the same for2022).

risks inherent to their own organizations. The Group has also set
up a framework that enables the correct dissemination of
information if an unforeseen incident occurs.

◦ Avoiding scheduling clashes with other companies
The General Meeting of Shareholders held in June 2022 took

Under this framework, each Group company conducts anannual risk survey that brings to light, specifically, risks related toplace on June 15, 14 days before the day on which othercompanies held their own meetings.

natural disasters (including infectious diseases), accidents,
information management, compliance, and other organizational◦ Exercising voting rights via electronic means

management risks. An appropriate response is then determined

We have allowed votes to be cast online via a designated voting

for each.

website.

If a serious risk situation materializes, a Crisis Response Team,headed by the president, is formed to contain the damage
spreading and minimize the fallout. These principles and actions
are prescribed in our Risk Management Regulations, and a report◦ Entry into an electronic voting platform
Efforts to improve the environment in which other institutional
investors exercise their voting rights

on risk analyses and responses is, in principle, presented to the

We belong to an electronic voting platform run by ICJ, Inc. We

Board of Directors annually.

also post convocation and resolution notices (including English

Moreover,the

Corporate

Sustainability

Committee

also

versions) on our website.

deliberates climate-change-related issues (see page 45) and thecontents of these deliberations are shared with the risk

◦ Providing convocation notices (digest version) in English

management office and relevant individual departments, and are

We create English versions of convocation and resolution notices

reflected in the Group’s overall risk management.

and post them on our website at the same time as the Japanese

Cyber-Security Measures
The Group uses a variety of information systems in its different
businesses, including in its railway operations—an importantversions.
◦ IR activities
In addition to actively engaging with investors in a variety of ways,

piece of infrastructure. As a cyber-security measure for theseincluding twice-yearly briefings—attended by the president—forkinds of information systems, we have established regulations

analysts and institutional investors regarding the mid-year andand systems for each group company based on Fundamental

year-end results, our dedicated investor relations staff in the

Policies on Electronic Information Security. Furthermore, weGroup Planning Division respond to investors’ inquiries. The

periodically carry out director and employee training, information

feedback we get from investors is shared in-house and reflected

security evaluations, inspections, and improvements. Throughin business management.

these and other efforts, we work hard to prevent information
security incidents.
However, should an incident occur, we would establish a

Respecting Stakeholders’ Positions
Realizing our mission to create satisfaction among our customers

CSIRT* to appropriately prevent its spread and ensure no

and contribute to society by delivering safety, comfort, dreams,

reoccurrence.

and excitement involves the ongoing pursuit of sustained growth*Computer Security Incident Response Team

underpinned by an active commitment to ESG.
In May 2020, we launched the Hankyu Hanshin Holdings Group
Sustainability Declaration (see page 2), a clear indication of how

Reflecting Stakeholder Sentiment in
Operations

we intend to contribute to more sustainable use of resources
across society. The declaration sets forth our determination toramp up ESG initiatives, to further solidify the relationship of trust
we enjoy with customers, local communities, shareholders,

At the Hankyu Hanshin Holdings Group, we believe that the views

trading partners, employees, and other stakeholders, and to use

of our stakeholders—including customers, local communities,

the Hankyu Hanshin Holdings Group’s businesses as a vehicle

shareholders, trading partners, and employees—have an importantfor overcoming the challenges we all face as a society.

place in our business operations.

Shareholder and Investor Relations

81

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

We have adopted a variety of initiatives to make shareholder

within the Personnel and General Affairs Division, and our efforts

meetings more rigorous and make it easier for shareholders toin this area are guided by the Sustainability Declaration. Moreover,Hankyu Hanshin Holdings Integrated Report 2022

Profile

Creating Real Value:
Our Story

we publish the Sustainability Data Book to present the results ofmajor activities, as well as our future policies and plans, alongside
putting details on the Hankyu Hanshin Holdings website
fordetails.

Creating Real Value:
The Foundations

Creating Real Value:
The Processes(https://www.hankyu-hanshin.co.jp/sustainability/)(Japanese only)

Financial Section andCorporate Data

4. Tax governanceCorporate governance of taxation is covered by our groupwide
governance system. We have an oversight system in place, underwhich tax-related risks are reported to the Board of Directors andAudit & Supervisory Committee as appropriate.

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 ourrailway routes. This structure is designed so that customer
feedback is routinely shared in-house and reflected in ourbusiness.
The Hankyu Corporation incorporates its Transit Information

5. Tax-related risk management
Should any dealings for which tax interpretations are unclear
take place as part of our business activities, we take advice fromoutside experts and where needed consult with tax authorities inadvance so as to minimize tax-related risk.

6. Relationship with tax authorities
We work to maintain a positive relationship with tax authorities

Center and Public Relations Dept. Listening Center into its

and respond in a timely manner to their queries accurately andframework for collecting and acting on customer feedback.

honestly.

For its part, the Hanshin Electric Railway seeks to act on
feedback collected by its public relations office and at its various

Japan

Overseas

Total

FY2020

14.0

0.5

14.5

FY2021

19.4

0.3

19.8

FY2022

-11.1

0.9

-10.1

facilities, as well as through its website and the efforts of its
communications staff.
Alongside the pertinent departments, we investigate andrespondtoopinions,

questions,

and

other

feedbackasappropriate, and the results are subsequently used to improve
our businesses.

Acting on Feedback from Experts(¥ billion)■ Amount of Tax Paid

*Tax paid is a combined figure for both national and regional taxes. The
figures given above are based on country-specific reports and are notdirectly connected to our consolidated financial statements.

The priority issues relating to sustainable management set forthin the Materiality Matrix (see page 46) reflect the diverse views
provided by a broad variety of experts, including professors, civic

Approach to Intellectual Property

groups, and investors.

The intellectual properties that we have built up through our

Taxation Transparency (Tax Policy)
1. Fundamental policy
The Group wishes to remain a corporate group that has the trustof its customers and the rest of society. To this end, we arestrengthening and enhancing our corporate governance byfurther raising the level of transparency and soundness of ourbusiness management, complying with laws and regulations, anddisclosing information in an appropriate manner and at a suitable
time.
This fundamental approach will guide us as we aim to bothcontribute to society by paying a reasonable amount of tax andachieve sustainable growth and greater corporate value in themedium to long term.

2. Compliance with tax laws and regulations
As well as complying with laws and regulations pertaining totaxation, we will report and pay taxes appropriately and thereby
fulfill our corporate social responsibility.

3. Tax planning
The scope of our tax planning is based on our business objectives
and actual performance and we are working to improve corporate
value through the effective use of tax incentives and othermeasures. Our tax planning is not conducted with the aim of tax
avoidance.

business activities over many years—including our brands,
trademarks, and confidential management assets such as writtenmaterials and expertise—are important corporate assets to the
Hankyu Hanshin Holdings Group. As such, we will endeavor tocreate new intellectual properties, both to provide products andservices that customers can choose with peace of mind and to
appropriately distribute as a management asset to support futurebusiness expansion. To those ends, it is imperative that wemanage and use these assets appropriately.
Based on that approach, we will manage intellectual properties
in the ways outlined below so as to raise their value even further.
We also have the utmost respect for intellectual properties
that belong to third parties.
(1) We will not only work to avoid or prevent the infringement of
the intellectual properties we have created, but will acquire
rights so as to support the expansion of our business activities
and use these intellectual properties actively and strategicallyin our businesses.
(2) Where third parties, including business partners, wish to dobusiness that involves the use of our intellectual properties,
we

will

make

our

permission

mandatory

andensurepermission is dependent on the contents of that use after anappropriate investigation.
(3) Where we confirm that a third party has, or may have,infringed upon our intellectual property rights, we will takeserious actions.
Hankyu Hanshin Holdings Integrated Report 2022

82

Creating Real Value: The Foundations

Directors and Audit & Supervisory Committee Members
As of Jury 1, 2022

Directors

OutsideOutside director

Kazuo Sumi Male

Chairman and Representative Director,
Group Chief Executive Officer

Independent

Independent oﬃcer

Takehiro Sugiyama

Masao Shin

Male

1982

Joined Hankyu Corporation

1973

Joined Hankyu Corporation

2005

Director, Hankyu Corporation

2000

Director, Hankyu Corporation

2006

Director, Hankyu Holdings, Inc.

2002

Managing Director, Hankyu Corporation

2006

Director, Hankyu Hanshin Holdings, Inc.

2003

President, Hankyu Corporation

2007

Managing Director, Hankyu Corporation

2005

President, Hankyu Holdings, Inc.

2016

Executive Vice President,

2006

President, Hankyu Hanshin Holdings, Inc.

2014

Chairman, Hankyu Corporation (Current position)

2016

Executive Vice President, Hankyu Corporation

2017

Chairman, Group CEO, Hankyu Hanshin Holdings,

2016

Director, Hankyu Hanshin Express Co., Ltd.

2021

Joined Hanshin Electric Railway Co., Ltd.

2006

Director, Hanshin Electric Railway Co., Ltd.

2006

Director, Hankyu Hanshin Holdings, Inc.

2008

Managing Director, Hanshin Electric Railway Co., Ltd.

2014

Senior Managing Director, Hanshin Electric

2016

Director, Hankyu Corporation (Current position)

2017

President, Hanshin Electric Railway Co., Ltd.
(Current position)(Current position)

2017

Director, Hankyu Travel International Co., Ltd.

2017

President, Hankyu Corporation(Current position)

2017

President, Hankyu Hanshin Holdings, Inc.

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

2018(Current position)
2021

1981

Railway Co., Ltd.

Hankyu Hanshin Holdings, Inc.

Inc. (Current position)

Male

Executive Vice President andRepresentative Director

President and Representative Director

Director, Hankyu Hanshin Properties Corp.
(Current position)

Chairman, Hankyu Hanshin Properties Corp.
(Current position)

Yasuo Shimada

Male

Noriko Endo

FemaleOutside

Executive Vice President andRepresentative Director

Director (Outside director*)
1994

Joined DIAMOND, Inc.

1988

Joined Hankyu Corporation

2013

Visiting Researcher, Policy Alternatives

2019

Director, Hankyu Corporation

2021

Managing Director, Hankyu Corporation

2022

President, Hankyu Corporation (Current position)

2022

Director, Hanshin Electric Railway Co., Ltd.
(Current position)

2022

Director, Hankyu Travel International Co., Ltd.

Yuki Tsuru Female

OutsideIndependent

Director (Outside director*)

Research Institute, the University of Tokyo
2015

Project Professor, Graduate School of Media

2000 Attorney at law (Current position)2016 Auditor of Hitotsubashi University
2020 Director, Hankyu Hanshin Holdings, Inc.
(Current position)

and Governance, Keio University
2019

Director, Hankyu Hanshin Holdings, Inc.
(Current position)

2020

Project professor at the Keio University
Global Research Institute (Current position)(Current position)
2022

Independent

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

Mitsuyoshi Kobayashi
Male

OutsideIndependent

Director (Outside director*)
1982

Joined Nippon Telegraph and Telephone Public

Yoshishige Shimatani
1975

Joined TOHO CO., LTD.

2011

President, TOHO CO., LTD.

2015

Director, Hankyu Hanshin Holdings, Inc.

Corporation
2018

President and Representative Director, Nippon Telegraph(Current position)
2021

and Telephone West Corporation
2021

President, Representative Director, and Executive Officer,
Nippon Telegraph and Telephone West Corporation

2022

Director, Hankyu Hanshin Holdings, Inc. (Current position)

2022

Advisor, Nippon Telegraph and Telephone West
Corporation (Current position)

83

Hankyu Hanshin Holdings Integrated Report 2022

Male

Director (Part-time)

Representative Director and President, President
and Executive Officer, TOHO CO., LTD.

2022

Representative Director and Chairperson,
TOHO CO., LTD. (Current position)

Naoya Araki

Male

Director (Part-time)
1981

Joined Hankyu Department Store, Inc.

2012

President, Hankyu Hanshin Department Stores, Inc.

2012

Representative Director, H2O RETAILING CORPORATION

2017
2020

Director, Hankyu Hanshin Holdings, Inc. (Current position)
President and Representative Director, H2O
RETAILING CORPORATION (Current position)

2020

Chairman, Hankyu Hanshin Department Stores, Inc.
(Current position)

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Foundations

Creating Real Value:
The Processes

Financial Section andCorporate Data

Directors, Audit & Supervisory Committee Members

Masayoshi Ishibashi

Michiari Komiyama

Male

Director, Audit & Supervisory Committee
Member (Full-time)

1979

Joined Hanshin Electric Railway Co., Ltd.

2013

Standing auditor, Hanshin Electric Railway

MaleCo., Ltd. (Current position)
2013

Standing auditor, Hankyu Hanshin Holdings,
Inc.

2020

Director, Audit & Supervisory Committee
Member (Full-time), Hankyu Hanshin
Holdings, Inc. (Current position)

OutsideYuko Takahashi
FemaleIndependent

OutsideIndependent

Director, Audit & Supervisory Committee
Member (Outside director*)

Director, Audit & Supervisory Committee
Member (Outside director*)

1971

Prosecutor

1978

Joined Kyoto University Hospital

1999

Prosecutor, Supreme Public Prosecutorʼs Office

1986

Head of Internal Medicine, Yamato Koriyama Hospital

1999

Chief Prosecutor, Saga District Public Prosecutorʼs Office

1994

Head of Internal Medicine, Yamato Takada Municipal Hospital

2002

Chief Prosecutor, Kobe District Public Prosecutorʼs Office

2001

Head of Smoking Cessation Outpatient Services, Kyoto

2003

Notary, Osaka Legal Affairs Bureau

2013

Attorney at law (Current position)

2002

Professor, Health Care Center of Nara Womenʼs University

2017

Auditor, Hankyu Hanshin Holdings, Inc.

2003

Professor, Graduate School of Humanities and Sciences, Health

2017

Auditor, Hankyu Corporation (Current position)

2020

Director, Audit & Supervisory Committee Member,

2007

Visiting Head of the Clinical Research Center, National Hospital

University Hospital (Current position)

Care Center of Nara Womenʼs University

Hankyu Hanshin Holdings, Inc. (Current position)

Organization Kyoto Medical Center (Current position)
2016*Ms. Noriko Endo, Ms. Yuki Tsuru, Mr. Mitsuyoshi Kobayashi, Mr. Michiari Komiyama, and Ms. Yuko Takahashi satisfy thequalifications of outside 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 Ms. Endo, Ms. Tsuru, Mr. Kobayashi,
Mr. Komiyama, and Ms. Takahashi as independent officers.

Specially Appointed Professor, Graduate School of Medicine,
Kyoto University (Current position)

2022

Director, Audit & Supervisory Committee Member, Hankyu
Hanshin Holdings, Inc. (Current position)

Board of Directors Skills Matrix
Corporate
management

Finance/Accounting

Legal aﬀairs/
Risk management●

Kazuo Sumi

Male

●

●

TakehiroSugiyama

Male

●

●

Masao Shin

Male

●

●

Yasuo
Shimada

Male

●

●

NorikoEndo

OutsideIndependent
Independent

FemaleYuki Tsuru

OutsideIndependent

FemaleMitsuyoshi
Kobayashi

OutsideIndependent

Male

◎

Yoshishige
Shimatani

Male◎

Naoya Araki

Male

◎

Male

●

Masayoshi
Ishibashi

Audit & Supervisory Committee member

Michiari
Komiyama

Audit & Supervisory Committee member

Yuko
Takahashi

Audit & Supervisory Committee member

OutsideOutsideSpecialist
knowledge●◎ Public policy◎

Male

Independent

FemaleIndependent

◎ DX

●
◎
◎ Public health●…Major knowledge, experience, and capabilities of those who have come up through the Group◎…Knowledge, experience, and capabilities expected of directors, excluding the above*The matrix above does not represent the total knowledge, experience, and capabilities of each director.

Hankyu Hanshin Holdings Integrated Report 2022

84

Creating Real Value: The Foundations

Audit & Supervisory Committee Member
Tripartite Discussion
Masayoshi Ishibashi
Director and Audit & Supervisory
Committee member(Full-time)

Michiari Komiyama
Director and Audit & Supervisory
Committee member(Outside director)

Yuko Takahashi
Director and Audit & Supervisory
Committee member(Outside director)

Duties to fulfill to lead Kansai85

Two years after we became a company with anauditor at Hankyu Hanshin Holdings, and since then I havethe strengths that come from differing ideas toin management.

audit & supervisory committee, we are employing

moved from a purely financial field to become more involved

move into the next stage of growth.

Komiyama I wanted to join the legal profession and in 1971

Ishibashi In June 2020, Hankyu Hanshin Holdings changed

prosecutor at the Supreme Public Prosecutor’s Office andits business structure, becoming a company with an audit

then as a chief public prosecutor at Kobe District Public

and supervisory committee. I am extremely glad that for theProsecutor’s Office, but now I work as an attorney at law. In

three of us on the Audit & Supervisory Committee, I will be

2017, I was made an outside director at Hankyu Hanshin

working alongside Mr. Komiyama—who, since his time as an

Holdings. Since 2020, as an Audit & Supervisory Committee

auditor, has striven to strengthen corporate governance asmember, I have been providing support, particularly in terms

an attorney—and a new addition this year, Ms. Takahashi—aof corporate governance and compliance.

doctor.

Ishibashi Lastly, Ms. Takahashi. You joined the Company as

Komiyama For myself likewise, I rely a great deal on Mr.

an outside director in June this year. Could you tell us a little

Ishibashi, who has contributed so much to the Group overmore about yourself?

many years.

Takahashi Happily. I grew up in Nara Prefecture, and after

Ishibashi

To kick-off this discussion, let me first start by

graduating from Kyoto University’s Faculty of Medicine, I

talking a little about my career. I joined Hanshin Electric

worked as a doctor of internal medicine. Later, as a specialist

Railway back in 1979, and after stints as the head of financein preventive medicine, I was invited to teach as a professor

and then president of a subsidiary, in 2013 I became an

at Nara Women’s University. In 2016, I returned to my alma

Hankyu Hanshin Holdings Integrated Report 2022

I was appointed as a prosecutor. I have served as a publicCreating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Datamater, Kyoto University, and since then I
have

been

workingasaspecially

appointed professor at its Graduate
School of Medicine, researching andteaching students, while also seeing
patients at Kyoto University Hospital. In
1994, I set up Japan’s first smoking
cessation outpatient services, at a time
when smoking was permitted even in

Health management isvaluable for employees,
but also for theCompany as a whole

hospitals!
Komiyama

These days, it’s hard tobelieve that it was ever like that!
Takahashi

That’s right. It was aboutthat time that society in general started
to take a closer look at the negative
health effects of smoking, and sincethen striving to persuade smokers to give up smoking has

their performance at work, too.

becomeTakahashi

part

of

companies’

efforts

towardhealthYes,

healthmanagement

isvaluableformanagement and I have been able to help many companies

employees, but also for the Company as a whole. If individualwith their health management and smoking cessation

employees get healthier, they work more efficiently, and thispromotion. For example, the correlation between diabetes

leads to greater productivity for the entire organization. I

and smoking: not only are smokers more likely to develop

have helped a number of companies and by promoting

diabetes, those who already have diabetes are more likely tohealth management and smoking cessation, their employees

suffer from complications if they also smoke—the negative

have become healthier, but also the atmosphere at thoseeffects are myriad.

companies is brighter.

Ishibashi So, you were fated to be brought into the Company.

Komiyama I think that for a company like Hankyu Hanshin

It is extremely promising that you, an active doctor, are

Holdings that represents the Kansai region, it is important

taking part in our health management. Furthermore, asthat it takes the lead and highlights its stance of tacklingsomeone with experience as a wife and mother, I lookhealth management.

forward to hearing your opinions on ways women can work

Takahashi Yes, I think that the Company showing its strong

and about their career paths. With three people with three

approach to health management will have a positive

different backgrounds and careers, we can exchange ideas

influence on Kansai but also Japanese society as a whole. I

from diverse perspectives, so I feel as though the committee

believe that tying health management into the Company’s

has evolved.

image, will also help to raise corporate value.
Ishibashi It is exactly as you say—if employees are healthy

Health management has a bearing not only on

and eager to work, that will form a foundation from which

employee happiness, it aids corporate productivity too.

we can raise productivity and then corporate value.

Ishibashi The Company’s promotion of health management

Legal compliance and corporate governance form

is based on the Hankyu Hanshin Holdings Group Sustainability
Declaration it announced in 2020. Ms. Takahashi, what are

the basis of corporate management.

your thoughts on this kind of approach and initiatives?

Ishibashi

Takahashi

Helping people to stop smoking is a pressing

corporate governance has grown, but I would like to hearissue for the promotion of health management. It is anwhat you have to think about the subject as an outside

important initiative for employees’ health, but we know that

director, Mr. Komiyama.

its benefits are not limited to health—stopping smoking also

Komiyama Looking at compliance, first, I feel as though the

improves concentration, reduces the chance of industrial

Company has made proactive efforts. However, as an outside

accidents, boosts mental health, reduces the need to takedirector, I must remember to take an objective standpoint

long periods off work, and raises work efficiency.

and look on compliance efforts critically, and I have to remain

Ishibashi I see, I thought that encouraging employees to giveaware of the need to point our problems as I do. It goesup smoking was purely for their health, but it can enhance

without saying, but the foundation of corporate management

In recent years, the importance placed on

Hankyu Hanshin Holdings Integrated Report 2022

86

Creating Real Value: The Foundations

is

the

observance

of

laws

and

regulations, in other words compliance.
Therefore, if we let legal violations thatgo against this pass, there is a risk thatthose violations could destabilize theCompany and its future.

Sometimes offering aharsher view to support
management’s
decision-making

Ishibashi That could sever the relationshipsof trust that the Group has built up withcustomers and other stakeholders.
Komiyama Exactly. Precisely because I
am an outside director, speaking froman objective perspective, I can actually
speak my mind firmly. The mission that I
have been set is to maintain complianceby not accepting any compromise anddoing all I can to protect it.
However, while it is important to monitor things critically

improve the effectiveness of audits. The starting point forthrough the lens of rules in order to ensure compliance,these improvements is learning more information about theconcentrating on that too much would mean not being able

Company. As someone who has come up through theto respond flexibly, which could lead to a negative

Company, I am trying to provide the members of the Audit &atmosphere between myself and my colleagues, so balanceSupervisory Committee with as much data as possible—bothis key.

good and bad.

Ishibashi That is the kind of insight only someone that has

Komiyama That is something you do well. For instance, it isspent years involved in legal affairs as a prosecutor, like Mr.

very helpful for our understanding of the business to have

Komiyama has, can provide. How about governance?

business representatives speak to us directly. In a big

Komiyama

Guiding a company as big as Hankyu Hanshincompany, information sometimes doesn’t make it all the way

Holdings can be compared to steering a large ship, thoseto management, but I think in the Company’s case, it iswith experience at the helm—from the captain down—

possible to hear all sorts of information, including straightrequire vast amounts of information and accurate judgment.

from the horse’s mouth of the front lines like this, so I have a

Again, like steering a ship, companies must keep an eye onreal feeling that the entire Group has an open culture.

the unsteady future, and decisions need to be made quite

Takahashisome time in advance, and once a decision has been made,given time to take in the thorough explanations of thethey must act resolutely. I think corporate decision-making isGroup’s circumstances. It is imperative that we have ample,

that important and difficult.

accurate information in order to make various decisions, so

One of my vital roles as an outside director is to ask lots ofImmediately after becoming a director, I wasthis is an approach I really want to Company to continue.

questions from an objective viewpoint so that no mistakes
are made in that steering, but also to sometimes offer aharsher view as I support management’s decision-making.
Furthermore, with these kinds of judgments, intelligence

The Board of Directors embodies diversities andis opening up lively debate.

should be gathered from throughout the relevant company,

Ishibashi I think the role of the Board of Directors is the key

and assorted studies and analysis conducted to make themto strengthening governance, but how do you think themore accurate. Hankyu Hanshin Holdings’ management

Board of Directors has performed since the Company shifted

decision-making is like that, I feel that these kinds of

to a structure with an audit and supervisory committee.

processes are being followed.

Komiyama

Whether it is as an auditor or an Audit &Supervisory Committee member, my role has not changed.

87

An open corporate culture aids the effectiveness

Although as an auditor on the Board of Directors I did notof audits.

have voting rights, as a director I now do.

Ishibashi We just heard about how outside directors support

determine opinions on personnel and remuneration for

management decision-making, but as the Audit & Supervisory

directors, and if needed we can directly relay that to the General

Committee it is extremely important that we ensure andMeeting of Shareholders, so I think governance has improved.

Hankyu Hanshin Holdings Integrated Report 2022

Moreover, on the Audit & Supervisory Committee, weCreating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Ishibashi We are directors, so in addition to audits, we also
have to provide oversight for the execution by other directorsof their duties. I would say that the Board of Directors now

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Established traditions and a spirit of taking on challenges.
A company that meets the expectations of its investors.

has a positive sense of urgency, which has brought it home

Ishibashi Finally, could you give our investors a message?

to me that we too have to earnestly tackle our duties.

Mr. Komiyama, do you have something to say?

TakahashiThis was my first time attending the Board of

Komiyama What I have noticed, as both an auditor and as

Directors meeting, and I was surprised by how animatedan Audit & Supervisory Committee member, is that the strong

discussions were. Seeing how knowledgeable everyone wassense of responsibility and of mission that comes with being

really made me feel the need to step up.

part of the social infrastructure has permeated down to

Ishibashi One of the reasons for the lively debates at theGroup employees on the front lines. While the Group has

Board of Directors may well be its diversity. Including us

developed a diverse range of businesses, they all share an

three, of the twelve directors, five are from outside of theawareness that raising the value of the entire Kansai region

Company,ofleads to business expansion. I think that our social

backgrounds—management, academia, law, medicine, etc.—

contribution activities such as the Hankyu Hanshin Dreams

is exceptional.

and Communities of the Future Project and the fact that we

Komiyama It is one aspect of sustainable management, butraise the value of the region, including our cultivation of

you could say that this is diversity in action.

tomorrow’s leaders, effortlessly synergize with business

Ishibashi Yes, highly diverse directors like this are able toactivities. The impact of the pandemic continues, but it is inhave lively debates, based on their own backgrounds. I think

precisely this kind of situation that new perspectives andit is an exceptionally good way of running things.

needs appear. Going forward, I want us to continue

Komiyama On the point of diversity, going forward, I expect

exchanges ideas freely and openly, while overcoming thesethat Ms. Takahashi will foster momentum for women to play

obstacles. For investors, I hope this will have offered some

active roles. Female participation is one of the goals put

peace of mind and expectations for the future, and I hope weforward in the Hankyu Hanshin Holdings Group Sustainability

can count on your support.

Declaration, but unfortunately our ratio of female managers

Ishibashi Thank you, Mr. Komiyama. The Group is pushingis rather low. I hope that Ms. Takahashi and the other female

forward with a variety of large-scale projects, including thedirectors will offer their advice on this.

Umekita Phase II Development Project. Challenges come

Takahashi While there are some businesses that have a highwith risks, but the Board of Directors has established a

proportion of female workers—such as travel and hotel—but

culture where risk hedging is thoroughly discussed. I would

there are also many fields, such as the railways, where

like our investors to pay attention to a more offensive risk

female participation is lacking. I wholeheartedly hope thatmanagement style that looks to gain returns while considering

the Company will work on this.

risk. Moving on, Ms. Takahashi, would you mind?

and

three

are

women.

The

diversity

Takahashi I am still relatively new in my post as director, but
it has already been impressed upon me that internal control
systems are functioning effectively. I have seen how theGroup comes together to truly embody its mission ofproviding safety and comfort, as well as

The highly diverse
directors havelively debates

dreams and excitement. Surely the basis
for that is the Group’s history of aiming todevelop richer communities and repeatedsincerebusinesspracticesandsocialcontributions. All I can say is that I expect
no less from the Group. I hope that what I
have had to say will reassure investors.
Ishibashi In the future, we of the Audit &Supervisory Committee will do everything
we can to meet the expectations ofinvestors and all other stakeholders.
My thanks to Mr. Komiyama and Ms.
Takahashi for today’s discussion.

Hankyu Hanshin Holdings Integrated Report 2022

88

Creating Real Value: The Foundations

S

Empowering
individuals

So cial

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

Non-Financial KPIs
Non-financial KPIs

Target value

Scope

FY2022 result

Employee satisfaction

Always better than inprevious survey(conducted biennially)

Hankyu Hanshin Holdings and the six major companies*

3.57(on a fivelevel scale)

Percentage of women in management positions

Improved to around 10% in FY2031

Hankyu Hanshin Holdings and the six major companies

5.1%

Percentage of women among new hires

Always 30% or more

Hankyu Hanshin Holdings and the six major companies

36.8%

Specific health guidance provision

60% or more in FY2026

Hankyu Hanshin Holdings and the six major companies

49.3%

Smoking prevalence

15% or less in FY2026

Hankyu Hanshin Holdings, Hankyu Corporation, Hanshin
Electric Railway, and Hankyu Hanshin Properties

19.7%

Paternity leave uptake rate

100% in FY2026

Hankyu Hanshin Holdings and Hankyu Hanshin Properties

57.8%

Employees with disabilities

Always higher than statutory ratio

19 special subsidiaries

2.96%

Human rights training attendance (levelspecific training mainly conducted byHankyu Hanshin Holdings)

Always 100%

Hankyu Hanshin Holdings and six major companies

100%*Six major companies: Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin Express, andHankyu Hanshin Hotels

Enhance our human capital

Cultivate tomorrow’s leaders

To bring about our Long-Term Vision, are putting in place a

As part of the Hankyu Hanshin Dreams and Communities of

personnel strategy that is coordinated with the vision to further

the Future Project, we provide career education programs

enhance our human capital.

for elementary school children. Our Hankyu Hanshin Dreams

Furthermore, we have set non-financial KPIs to help strategicallyand Communities Challenge Troop and Hankyu Dreams andhire and develop the personnel we need for to advance our

Communities Exciting Work Program received the Minister’s

management strategies, and maximize the performance of every

Award (Grand Prix) at the 8th Career Education Awards held

individual.

by the Ministry of Economy, Trade, and Industry in fiscal 2018,

For more details on our approach to human capital—including

and the highest award (the Minister’s Award) at the“Youthour personnel strategy—and non-financial KPIs, see Special

Experience Activity Promotion Company Award”sponsoredFeature 1: Human Capital from page 37.

by the Ministry of Education, Culture, Sports, Science andThree Human Resources Strategies
Strategy 1

Develop Highly Engaged Personnel

Strategy 2

Assemble Diverse Talent to Help Create New Value

Strategy 3

Secure Personnel to Promote and Implement DX in the Group

Technology in fiscal 2021.

Hankyu Hanshin Dreams and Communities Challenge Troop
With railways, hotels, the Takarazuka Revue Company, andHanshin Koshien Stadium among many others, our businesses,
facilities, and workforce are the ideal framework for elementary
school students to experience a variety of real work during their

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 a written

summer vacation. Prior to fiscal 2022, we have hosted over
18,000 children across 415 programs so far. (No programs took
place in fiscal 2022
due to the COVID-19
pandemic.)

Basic Philosophy on Respect for Human Rights and Basic Policy on
Respect for Human Rights.
See our basic philosophy and policy on respect for humanrights at ▼https://www.hankyu-hanshin.co.jp/sustainability/
materiality/human/rights/ (Japanese only)

89

Hankyu Hanshin Holdings Integrated Report 2022

Kids participate in the Hotel Patissier ProgramCreating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Hankyu Hanshin Holdings Group Social Contribution Activity

Hankyu Hanshin Dreams and Communities of the Future ProjectAs part of the 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 developing environment-friendly regional environments
and tomorrow’s leaders, is one of our efforts aimed at helping meet the SDGs as outlined in the
Sustainability Declaration we unveiled in May 2020.

Basic Policy① Collaboration with companies

We intend to promote the creation of communities along

We promote the CSR activities of our Group companies throughour line-side areas that people will truly want to live in.

public relations, sponsorships, and additional contributions. In fiscal
2022, 105 initiatives were carried out groupwide (96 in fiscal 2021).

Priority Fields

For example, the One-million Candle Night event as part of

Sustainable Community
Development—Developing
communities sustainably

Tomorrow’s Leader
Development—Developing those
who responsible for thecommunities of the future

Nishiumeda Night in Osaka City, and the Hankyu Hanshin Dreams
and Communities of the Future Challenge Troop (see page 89).

② Collaboration with local community
We subsidize citizen’s groups in the Hankyu Hanshin service area

Main activities

through donations raised by our employees and additional

We are conducting a variety of activities supported bycontributions from the Company via the Hankyu Hanshin Dreams

cooperation between companies, local communities, andand Communities of the Future Fund. By the end of fiscal 2022, 166

employees.

institutions have received a total of ¥99.06 million.
① Promotion of CSR activities at
each Group company(collaboration withcompanies)② Support for civic groups
through financial assistance andcooperation in public relations(collaboration with local
communities)

Case study③ Promotion of social contribution
initiatives by current and past
Group employees(collaboration with
employees)③ Collaboration with Group employees
As a support for current and past employees to join or continuously
engage in community activities voluntarily, we distribute information
through Group magazines and mail magazines and provide
opportunities for volunteering inside and outside the Company. In
fiscal 2022, the number of participants in volunteer activities
reached 4,633.

Dreams and Communities of the Future SDGs Trains

To commemorate a decade of these project initiatives, in May 2019, we launched theDreams and Communities of the Future SDGs Trains, which disseminate a variety ofmessages to help achieve the SDGs. We have been running these trains in cooperation
with governments, municipalities, companies, civic groups, and other bodies. The
external appearance of the trains features illustrations inspired by the SDGs, whileinside the trains posters and stickers are also all related to the SDGs.
Since September 2020, we have been operating the trains in collaboration with the
Tokyu Group, and the energy used to run the trains is sourced entirely (effectively100%) from renewable sources, as well as other initiatives.
In December 2020, these linked efforts were well-received and presented with aSpecial Award (SDGs Partnership Award) at the 4th Japan SDGs Award.
We plan to continue these initiatives until EXPO 2025 in Osaka, Kansai.

The Dreams and Communities of
the Future SDGs Trains underwent a
design renewal in April 2022

Hankyu Hanshin Dreams and Communities of the Future Project Website (Japanese only)
https://www.hankyu-hanshin.co.jp/yume-machi/

For more details on our approach to ESG issues, targets, initiatives, and other data, see our Sustainability
Data Book.

https://www.hankyu-hanshin.co.jp/sustainability/report/● Society themes: … Respect for human rights, safety and security initiatives, contribution to the local communities

and society, employment and labor initiatives, and occupational safety and healthHankyu Hanshin Holdings Integrated Report 2022

90

Creating Real Value: The Foundations

SpecialFeature2

Helping to Develop Communities
with Low Environmental Impacts

As a corporate group that has developed alongside the local communities in which we operate, we are forging ahead withinitiatives that look to assist with carbon neutrality by reducing the environmental impact not only of our own business activities,
but of communities as a whole.

Approach 1

Expanding our public transport network and promoting its use

Since our founding, we have striven to expand our public transport network and enhance convenience. The energy required to transporta single person on a train is around an eighth of that needed for a car—very low—and so in cities where we can predict a certain basenumber of travelers, constructing a public transport network centered on trains is a way we believe we can help develop communities tohelp make society carbon neutral.

1. Past efforts to enhance our public transport network and reduce our environmental impact
As a group, we have put our energy into lowering our environmental impact while also improving convenience. This has taken many forms,
such as expanding our train-focused public transport network—which includes buses and taxis—and being quick to press forward with abike rental business based around our stations, among other initiatives.
With the opening of the Hanshin Namba Line, which allows for a direct train service connecting the Kobe and Nara areas, in 2009, ourarea grew to include more people who commute to work or school using public transport. Since then, millions of customers have used theHanshin Namba Line—in fact, in a single day around 150,000 passengers travel on the line. In 2010, we opened Hankyu Settsu-shi Station,
which as well as efforts to create and save energy, achieves

CO₂ emissions from the transport sector (passenger transport, FY2020)

carbon offsetting through its forest conservation measures.

*Taken from the Ministry of Land, Infrastructure, Transport and Tourism website

Between these, it has reduced its CO₂ emissions to virtually

Householdpassenger vehicles

zero, making it Japan’s first carbon-neutral station. In addition,
Hankyu Nishiyama-tennozan Station, which opened in 2013

Aviationand is directly connected to the expressway network, hasBusesa park and ride car park integrated into the station facility.

TrainsIt also boasts a stop for express buses, and other facilities,

130
98
57
17

g-CO₂/kg (passenger)
50

0achieving both convenience and low-environmental impact.

100

150

Arashiyama

End of FY2024 (Target)
Completion of extension
work to the Kita-Osaka
Kyuko Line (Senri-Chuo to
Minoh-Kayano)

December 2013
Opening of Hankyu Nishiyamatennozan Station, which directly
connects the railway with theexpressway road network
Nissei-chuo

Kyoto-kawaramachi

HankyuArashiyama Line

KatsuraKyoto
Prefecture
HankyuKyoto Line

Myokenguchi

Nishiyama-tennozan
tric
Nose Elec
Railway

Hyogo
Prefecture

Takarazuka

ectr

Hankyu Kobe Lineic Ra

Shukugawa

Imazu

Kobesannomiya

Hankyu Hanshin Holdings Integrated Report 2022

Tsukaguchi
Nishinomiya-kitaguchi
Imazu
Koshien
Mukogawa

Mukogawadanchi-Mae

Motomachi

Hanshin
Main Line

Kobe Airport

91

HankyuTakarazuka
Line

Daimotsu

Amagasaki

Kobe-Sannomiya
Shinkaichi
NishidaiToyonaka

Koyoenilway

Kobe Rapid Transit
Railway

HankyuItami Line

HankyuSenri
LineSenri-Chuo
Ishibashi
handai-mae

Itami

Hanshin
Mukogawa
Line

Osaka Metroe El

Kurakuenguchi

Osaka
International
Airport(Itami Airport)

Kita-Osaka Kyuko

Hankyu Koyo Line
Kob

Takatsuki-shi

Minoh-Kayano
Kita-senri

HankyuImazu
LineHankyu Nishiyama-tennozan Station

Minoh

Kawanishi-noseguchi

Hankyu Settsu-shi Station

Osaka
Prefecture

HankyuMinoh Line

Settsu-shi
Esaka
Awaji

Shin-Osaka
Juso

Tenjimbashisuji
6-chome

Osaka-Umeda
Fukushima

Hanshin Namba Line

Osaka Bay

March 2010
Opening of Hankyu Settsu-shi
Station as a carbon-neutral
stationOsaka-Namba

March 2009
Opening of the Hanshin Namba
Line, which links up with Kintetsu
lines in Nara and toward Kobe,
going via Namba in OsakaCreating Real Value:
Our Story

ProfileCreating Real Value:
The Foundations

Creating Real Value:
The Processes

Financial Section andCorporate Data

2. CO₂ reductions resulting from the extension of the Kita-Osaka Kyuko LineWe are extending the Kita-Osaka Kyuko

Shin-Meishin Expressway

Line by around 2.5 km to the north of

Ibaraki-Sendaiji IC
Mino-Todoromi IC

Osaka, from Senri-Chuo Station to theable to get on a train at the new station

Minoh-Kayano
Stationand, without needing to change, accessurban

centerssuchasShin-Osaka,

Minoh-SembaHandaimae
StationUmeda, Namba, and Tennoji.
The city of Minoh, to which the line isExtension

sw
es
pr
Ex

Minoh-Kayano
StationMinoh-SembaHandaimae Stationin

Minoh GreenRoad

Metro’s Midosuji Line, passengers will be

Minoh GreenRoad

Mountainssh

As the line connects directly to Osaka

Extensionei

to open the line at the end of fiscal 2024.

Kawanishi IC

M

Takarazuka-kita
Smart ICay

Takatsuki Jct./IC

new Minoh-Kayano Station, and we plan

Senri-Chuobeing extended, is a long, narrow strip ofland that runs east to west. Despite this,the city has so far only been served by astation, Hankyu Minoh Station, is the city’swest, meaning that many in the area have

Post-extension

had to rely on cars to get around. WithThe extension will…

By bikeOn foot

the planned extension, two new stations

Separate people and goods,
easing congestion!

will be opened along the line which runs
north-south through the center of the city,

Shimmido-suji (National Route 423)

greatly enlarging the areas from whichpeople can reach a train station by bike

Minoh-Kayano
Stationor on foot. By reorganizing the city’s bus
routes to centered them on the stations,and by encouraging visitors from further
afield to use park and ride facilities, we
use the line each day.

People by train

Minoh-SembaHandaimae
Stationwe plan to make them more convenient,predict that around 45,000 people will

Goods by road

Senri-Chuo Station*Calculated based on a walking speed of 3.6 km/h, and a cycling
speed of 10.5 km/h (in accordance with the MLIT’s cost-benefit
analysis manual)

On the other hand, as many of the area’s major roads—including the Meishin and Shin-Meishin expressways—run through the northern Osaka
area, making Minoh a logistical base for goods going to the central part of Osaka Prefecture, however the area’s trunk road—Shimmido-suji,
National Route 423—is the prefecture’s busiest and suffers from chronic traffic jams. By having a trainline run from the northern part of theprefecture down into Osaka City, we will promote the separation of people and goods—transporting the former on the trainline, the latter on
the road—which we expect to ease congestion problems on Shimmido-suji. In this way, we are using our extension of the Kita-Osaka Kyuko Line
as a pivot to reorganize mobility in the area, and by so doing reduce the region’s overall environmental impact and improve convenience.

Contribution to CO₂ reductions by extending the Kita-Osaka Kyuko LineThe modal shift away from private vehicles is of benefit to society and, as the illustration below shows, will cut 1,310 metric tons of CO₂
production each year—an amount that would require around 150,000 Japanese cedar trees to absorb* (in-house calculation).
Train operations will create
1,509 metric tons

Station operations and tunnel lighting
will create 731 metric tons
MinohSembaHandaimae

Senri-Chuo
Shift away from private vehicles
will cut 2,340 metric tons

Shift

Bus route reorganization
will cut 1,210 metric tons

MinohKayano
Shift

Route
reorganization*Calculated based on information from the Forestry Agency, which states that a single hectare of planted Japanese cedar forest absorbs approximately 8.8 metric tons of CO₂ per year

3. Further publicity for the effectiveness of public transport to aid the move toward carbon neutrality for society
We are currently investing projects involving new lines, such as the Naniwasuji Connection Line and Shin-Osaka Connection Line (seepage 27 for details), and striving to reduce the energy impact of the railway, through measures such as introducing energy-efficient rollingstock. By promoting MaaS (Mobility as a Service) for the wider area in cooperation with other railway operators in the Kansai region, weare constructing a system by which our customers can truly experience the convenience public transport can offer, while also conveying
how effective it is in moving toward a carbon-neutral society. With these efforts, we are encouraging more people to use the railways andcontributing to a reduction in communities’ overall environmental impacts.

Hankyu Hanshin Holdings Integrated Report 2022

92

Creating Real Value: The Foundations

Approach 2

Developing a sports business that brings together customers and businesses

Through the Hanshin Tigers and our operation of related facilities, we are working hand in hand with a number of customers, local
authorities, and companies to reduce the environmental impact of the surrounding region as a whole. By having the Hanshin Tigers be
the flagbearers for environmentalism “eco”(), we aim to have all of society join the movement.

1. Koshien Eco Challenge
At the Hanshin Koshien Stadium, we have started to pay even more consideration to being
environmentally friendly, as symbolized by the ivy with which we have covered its exterior walls.
Since our work to renovate the stadium between 2007 and 2009, as an environmental measures,
we have implemented a range of initiatives, including installing solar panels on the Ginsan roof over theinfield seats, making use of well and rain water, and promoting the recycling of plastic cups.
In addition, from the 2022 season onward, we have declared our Koshien Eco Challenge to thecompanies that are our official eco-advisors and eco-partners and the fans who visit the stadium. With
the setting of three new themes, we aim to create a stadium that is even kinder to the environment
than ever before.

① Produce less waste andpromoting recycling

Better recycling for plastic cups and bottles(efforts strengthened from midway through the 2020 season)
Biomass materials used for food and drink packaging, such as for the Koshien Curry(in stages from midway through the 2020 season)
Recycled materials for stadium staff uniforms (from the 2022 season), and other initiatives② Reduce CO₂ emissions

LED lights for night games (in operation from the 2022 season)
Carbon-offset games, and other initiatives③ Use renewable energy

Rooftop solar panels (in operation from March 2010)
Well and rain water use (well water since before renovations, rain water from the 2009 season
onward), and other initiatives

Hanshin Koshien
Stadium Recycling

Recover plastic
cups at thestadium

The solar panels generate 193 MWh per
year, 3.6% of the energy used at the stadium

Rain that falls on the large roof over the infield seatsis stored in underground tanks, and used to water
the ground or flush the stadium’s toilets.

We developed garbage bags for which some of the material comes from plastic cups
recovered at the stadium, and have been using them since the 2022 season.

Use at thestadium

Pulverize and melt collectedcups to process them into
recycled materials

Manufacture garbage bags,
partly from the recycledmaterials

2. Zero-Carbon Baseball Park ProjectAs part of its Zero-Carbon Ballpark Project, Hanshin Electric Railway aims
to help make the entire area carbon neutral, and is working on thoroughmeasures to reduce energy usage and introduce energy-efficient equipment,
as well as on the local production and consumption of electricity. These arebeing put into place across the region, from Odaminami Park—a location in
Amagasaki, Hyogo, that is set to be the new home of the Hanshin Tigers

Hanshin Tigers
Practice Field

Odaminami Park
SquareIndoorPractice
Field

Player Dormitory &Clubhouse

Hanshin Tigers
Baseball Stadium

Farm (the base for the Tigers second team)—as well as the nearby

Daimotsu Station
Daimotsu River Greenspace

Daimotsu Park, Daimotsu River Greenspace, and Hanshin’s various stations
around the city that provide access to the aforementioned sites.
The project is a joint proposal by the Amagasaki city authorities andHanshin Electric Railway and was selected by the Ministry of Environment
for inclusion on its List of Decarbonization Leading Areas* (First Round).

Daimotsu Park

Artist’s impression of the completed facility

During selection, the proposal was praised for the way in which, by working with the Hanshin Tigers, its aims of community development, tourism
promotion, regional revitalization, and carbon neutrality, were highly achievable and for the effect the announcement of the project had. The proposal
was also lauded for the plans to help make the railway stations carbon neutral that provide access to the park and plans to introduce electric buses.
*Areas that aim to achieve virtually zero CO₂ emissions from households and business sectors to achieve carbon neutrality by 2050. In addition, they makeefforts to achieve reductions in other greenhouse gas emissions such as from transportation and heat use by utilizing local characteristics, which is consistent
with Japan’s fiscal 2031 target.

93

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Profile
価値創造の基盤

E

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Environmental
protection

Environment

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

Major Non-Financial KPIs
Non-Financial KPIs
Rate of CO₂ emissions cuts

Target value
FY2031: 46% compared to FY2014
FY2051: Net zero CO₂ emissions

Scope

FY2022 result

Hankyu Hanshin Holdings and its subsidiaries’
Japanese worksites

36.1%
compared to FY2014

Basic Environmental Philosophy

Basic Environmental Policies

Mindful that global environmental preservation is a task facing all

1. We will monitor the environmental impact of our business activities and takemankind, the Hankyu Hanshin Holdings Group works for asustainable society through environmental activities aimed athanding down a sounder global and human environment to thenext generation.

action to reduce it.
2. We will accurately understand environmental laws and regulations andother social requirements and comply with them.
3. We will strive to raise employees’ awareness so that every employee will beable to act in an environmentally sustainable manner.

For more details on our approach to ESG issues, targets, initiatives, and other data, see our Sustainability Data Book.

https://www.hankyu-hanshin.co.jp/sustainability/report/● Environmental themes: Environmental management, climate change, pollution and resources, biodiversity,

water resources

Cut greenhouse gas (CO₂) emissions
Working toward Carbon Neutrality

Changes in CO₂ Emissions (see page 12)
We promote energy-efficiency initiatives throughout the Groupand endeavor to reduce CO₂ emissions.

In the Long-Term Vision that announced in May 2022, we set out

In our railway operation business, our efforts to reduce energy

a target of achieving net zero CO₂ emissions by fiscal 2051 as we

consumption include the introduction of an increased number ofwork to become carbon neutral by that point. To reduce those

new rolling stock with better energy efficiency, as well as theemissions, we will look at the financial soundness and efficiency

introduction of LED lighting in railway stations, commercial

of investments as we make efforts to promote steady moves

facilities, hotels, etc., and our CO₂ emissions in fiscal 2022 weretoward greater energy efficiency, and investigate energy creation

36.1% (393,821 t-CO₂) less than in fiscal 2014. However, due to(such as by introducing renewable energy generation facilities,a rebound in activity after the effects of the COVID-19 pandemicetc.), bearing in mind issues such as trends in technologicalthat saw an increase in the number of working days andinnovations and business profitability.

operations for the Group’s hotels, our CO₂ emission intensity
rose, meaning that CO₂ emissions were 6.4% higher than in fiscal

Fundamental efforts to achieve carbon neutrality① Steadily promoting energy-saving measures
Firstly, in order to reduce the Group’s base energy usage, we will
steadily promote greater energy efficiency while also looking at

2021.

■ Fiscal 2022 Groupwide Segment-Specific CO₂ Emissions
Urban transportation

66.0%

Real estate

19.7%

Entertainment

2.8%

We will push forward with studies into how we can create energy

Information andCommunication Technology

0.5%(such as by introducing renewable energy generation facilities,

Traveletc.), while also keeping ideas such as technical trends and the

0.4%

International transportation

profitability of our businesses.

0.5%

Hotel

9.1%

Others1.1%

financial soundness and the efficiency of investments.
② Considering energy creation③ Purchasing renewable energy (to add environmental value)
Where the efforts detailed above in ① and ② alone are insufficientto achieve our target, we will cover the difference by buying
electricity above to add environmental value.

Note 1: Figures pertain to 87 Hankyu Hanshin Holdings subsidiaries inJapan; some businesses, for which it is difficult to calculate energy
consumption, are excluded.
Note 2: Segment-specific data is calculated based on the core businessstructure in place at the end of fiscal 2022.

Hankyu Hanshin Holdings Integrated Report 2022

94

Creating Real Value: The Foundations

Improve energy efficiency (promote energy saving)Upgrading to Energy-Efficient Rolling Stock

They use the latest energy-efficient rolling stock, consuming
around half of the electricity needed for conventional rollingstock, and are powered by effectively 100% renewable energy.

Around 40% of the Group’s energy usage comes from the railway
operation business, and as such we place great importance onenergy-saving measures in that area. That is why Hankyu
Corporation and Hanshin Electric Railway are having discussions
with rolling stock manufacturers as they seek to introduce or
update energy-efficient rolling stock.
For example, Hankyu Corporation has introduced highly efficientvariable-voltage/variable-frequency (VVVF) inverter control devices
and motors in its rolling stock, as well as replacing all lights,
including headlights, with LED lights. Hankyu Corporation has
thus succeeded in developing highly energy-efficient rolling stock(with an electricity consumption reduction of about 50% fromconventional rolling stock). Hanshin Electric Railway has also
introduced a main circuit system for VVVF inverter control using
a permanent-magnet synchronous motor in its latest rolling stock
for local train use, as well as replacing all lights, including
headlights, with LED lights. Hanshin Electric Railway has thusachieved an electricity consumption reduction of about 60% fromexisting rolling stock for local train use.
Upgrading to Energy-Efficient Rolling Stock (as of March 31, 2022)
Hankyu Corporation rolling stock:

Hanshin Electric Railway rolling stock:●

VVVF: 58% (98/170 train units)●

VVVF: 67% (51/76 train units)●

Aluminum bodies: 826 (64%)●

Stainless steel bodies: 162 (45%)●

LED lights: 718 (56%)●

LED lights: 220 (61%)

Note: Total rolling stock: 1,283

Note: Total rolling stock: 358

Green Energy and Offset Credits
Since fiscal 2012, when we at Hankyu Hanshin Holdings hold ourGeneral Meeting of Shareholders, the CO₂ emissions produced
through the energy used at the venue is offset under a Ministry of
the Environment scheme using offset credits generated byreforestation projects in Hyogo Prefecture. In this way, we are
running initiatives aimed at reducing emissions to virtually zero(via carbon offsetting).
We are also working to offset CO₂ emissions through the use of
the J-Credit scheme* for Hanshin Koshien Stadium and Takarazuka
Grand Theater. In fiscal 2022, for designated six games at Hanshin
Koshien Stadium, all CO₂ emissions were offset.
*J -Credit scheme: A program under which the Japanese government
certifies amounts of CO₂ and other greenhouse effect gases reduced/
absorbed through the introduction of energy-saving equipment, forest
management, and other efforts as credits

Aim for more eco-friendly buildings (green buildings)
As well as striving to meet society’s demands—such as for carbon

Upgrading to LED Lighting
We are gradually upgrading to LED lights at Group facilities. LED
lights can increasingly be found not only in Hankyu and Hanshin
train cars but also at their stations, marshaling yards, tunnels, levelcrossings, and other railway facilities, as well as Hanshin Koshien
Stadium, Takarazuka Grand Theater, Tokyo Takarazuka Theater,and our commercial facilities, hotels, and distribution hubs.

neutrality and reductions in greenhouse gases—being at the
cutting-edge of environmental efforts is a way to differentiate
ourselves from our customers and enhance our competitiveness.
To that end, as well as trying to save energy, we are introducing
renewable energy, promoting advanced measures in zero-energy
buildings and homes, and focusing our efforts on acquiring
environmental recognition such as DBJ Green Building certification.

DBJ Green Building Certification
The Group is increasing efforts toacquire DBJ Green Building Certification*for its offices to be newly built andlarge commercial buildings. To date,
From the 2022 season, all lighting used at night games uses LED bulbs

Osaka Umeda Twin Towers South and

Use more renewable energy (e.g. solar)

received rating of five stars, HEP FIVE

HankyuNishinomiya

Gardenshavefour stars, and Kobe Sannomiya Hankyu

Osaka Umeda Twin
Towers South (5 stars)

Solar Power Generation Equipment

Building three stars.

We are endeavoring to expand our use of renewable energy by*A five-stage (1 to 5 stars) rating system launched by the Development
Bank of Japan to certify properties which give proper care to theenvironment and society (green buildings)

installing solar power generation facilities at premises groupwide,
including Hankyu Settsu-shi Station, Hanshin Oishi Station, Hankyu
Nishinomiya Gardens, HEP FIVE, and Hanshin Koshien Stadium.

Other Environmentally Considerate Buildings

Dreams and Communities of the Future SDGs Trains(see page 90)

Since April 2022, all of the electricity*¹ used in common areas andSince May 2019, Hankyu Corporation and Hanshin Electric Railway

and South buildings) is generated from CO₂-free renewable

have been running Dreams and Communities of the Future SDGs

energy. This is one of the ways we are working to bring together

Trains, which disseminate a variety of messages to help achievebuilding owners and tenant companies and help make society

the SDGs.

carbon neutral.

dedicated office spaces of the Osaka Umeda Towers (both North

Since the end of July 2011, all of Hankyu Hanshin’s Geo
condominiums*2 for sale have featured laminated low-emissivity

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Profile
価値創造の基盤Creating Real Value:
Our Story

Creating Real Value:
The Processes

glass, LED lights (common and exclusively owned areas), EV
charging facilities, etc. In this way, we have pioneered tackling

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Water Saving in the Hotel Business
Hankyu Hanshin Hotels encourages guests staying multiple nights

environmental issues. Also, in November 2021, we acquired ato use the same sheets and towels instead of having them

thermal insulation level of four or higher, and a primary energy

replaced every day, saving water. Also, some of the money saved

consumption level of four or higher, for all of our buildings

on laundry is donated to environmental action groups.

currently being constructed. Moreover, in October 2022, all of thecondominiums we plan to sell or lease from fiscal 2025 onward*2

Effective Use of Water at Group Facilities

were designated ZEH-M Oriented*3 or better.

Some commercial facilities have wastewater reuse equipment*1 Excluding electricity generated privately via co-generation systems*2 Excluding some buildings, such as those developed jointly with othercompanies*3 A standard for condominiums that reduce their overall primary energy
consumption (energy consumption in five areas designated in 2016energy-conservation standards: heating, cooling, ventilation, lighting, andhot water) including in common areas by 20% or more compared toconventional condominiums

that purifies rainwater and kitchen wastewater from restaurants
and uses it for watering plants and flushing toilets. At stations
and other facilities, we have also installed water-saving toilets.
Meanwhile, Hankyu Settsu-shi Station and Hankyu Nishiyamatennozan Station use rainwater for jobs like flushing toilets, while
Hanshin Koshien Stadium uses it for flushing toilets and watering
the grass.

Produce less waste and recycle more
We have set ourselves the task of promoting environmental

Conserve biodiversity

conservation activities that contribute to the development of a

We have set thriving communities as one of our priority themes

circular economy. We are endeavoring to understand and reduceand so as an initiative to put in place quality living environments,

the environmental impact we have through the pollution and

we are promoting activities connected to the natural environment

waste our business activities produce,* and to make effective use

and biodiversity throughout the Group.

of resources, such as by promoting recycling.
*D ata on waste, chemicals, and water resources can be found in the
Sustainability Data Book.

Supporting Citizen Groups with the Hankyu Hanshin
Community Future Fund
In our Hankyu Hanshin Dreams and Communities of the Future

Recycling Hanshin Koshien Stadium’s
Plastic Drink Containers

Project, a priority area is Sustainable Community Development

Hanshin Koshien Stadium is collaborating withinvolved collecting donations from employees, to which we have

two companies, Teijin Frontier and Shimojima,then added an identical amount, and using that to support citizen

to recycle the plastic cups in which draft beergroups in areas along ourand other drinks are sold at the stadium.

railway lines as the Hankyu

and so we are working to conserve biodiversity. Part of that has

As well as handing out novelty cup holders

Hanshin Community Future

made from recycled cups, in 2022 we developed

Fund. This fund has helped

recycled garbage bags created in part fromto support civic groups who

those recycled materials. This initiative to use

survey and conserve biodiversity

the plastic recycled materials from used plastic
beer cups is Japan’s first.

A beer cup
recycle bin

Recycling Food Waste in the Hotel Businessin the local mountains and rivers.
Mushugawa River Area Nature
Protection Association

Hankyu Hanshin Hotels has set food waste as a non-financial KPI
effective use of, and measuring, waste materials produced during

Protecting Biodiversity at the Rokko Alpine Botanical
Gardenfood processing, is working to control how much food waste is

Rokko Alpine Botanical Garden, a member of the Japangenerated.

Association of Botanical Gardens since its inception in 1947(see page 61) and by putting in place system related to making

Also, some hotels strive to use resources more effectively byserving as a local outpost, is devoted to preserving biodiversity;

properly separating scraps and repurposing reusable ones asaround 1,500 varieties of alpine and cold-region plants fromcompost or feed on a pig farm.

around the world, as well as plants native to Rokko, andendangered species are all cultivated in near-natural conditions.

Save and effectively use water resources
We are committed to reducing water use as much as possible bysaving water and reusing wastewater, in collaboration withcustomers, real estate business tenants, and other stakeholders,
based on our Basic Environmental Policies.

Developing Satoyama Forest in Kawanishi, Hyogo
The satoyama community forest and agricultural landscape in the
Kurokawa district of Kawanishi, Hyogo Prefecture, has been
described as Japan’s best. The Nose Electric Railway, which
serves the Kurokawa district, has been running forestation
activities with government and citizen groups since 2011. Each
year, employees volunteer to cut undergrowth and thin out trees,
and are concentrating on reviving and maintaining the satoyama
forest, which is home to great biodiversity.

Hankyu Hanshin Holdings Integrated Report 2022

96

04

Financial
Section andCorporate Data
CONTENTS

97

Hankyu Hanshin Holdings Integrated Report 2022

99

Consolidated Eleven-Year Summary

101

Business Risks

103

Consolidated Balance Sheets

105

Consolidated Statements of Income /Consolidated Statements ofComprehensive Income

106

Consolidated Statements of Changes in
Net Assets

108

Consolidated Statements of Cash Flows

109

Notes to the Consolidated Financial
Statements

136

Others137

Major Group Companies

138

Company Overview andInvestor Information

Hankyu Hanshin Holdings Integrated Report 2022

98

Financial Section and Corporate Data

Consolidated Eleven-Year Summary
Fiscal Year

2012

2013

2014
¥ 679,157

Result of Operations (Millions of yen):
Revenues from operations¥ 649,703¥ 682,439

Operating income

73,80987,921

91,828

EBITDA1

133,500

145,100

149,200

Ordinary income (loss)

65,39374,914

81,191

Income (loss) before income taxes

43,41962,192

83,542

Net income (loss) attributable to owners of the parent

39,25239,702

46,352Comprehensive income

44,99254,081

55,941

Capital expenditure

55,26759,51280,722

Depreciation and amortization

56,96854,54054,474

Cash flows from operating activities¥ 124,525¥ 127,655¥ 146,991

Cash flows from investing activities(44,295)(58,923)(45,517)

Cash flows from financing activities(78,978)(69,195)(105,079)

Cash Flows (Millions of yen):

Increase (decrease) in cash and cash equivalents

767

817

(1,840)23,57225,581

24,497¥2,274,380¥2,281,007¥2,286,928

524,801

573,154

617,598

1,183,647

1,126,633

1,032,307

Cash and cash equivalents at end of year
Financial Position (Millions of yen):
Total assets
Total net assets
Interest-bearing debt
Per Share Data (Yen)2:
Net income attributable toowners of the parent

Basic

¥

Diluted3

31.13

¥

31.48

¥

36.76

31.13

31.47

36.75

Net assets

407.01443.63477.69Dividend

5.00

5.00

6.00

Operating income margin (%)

11.4

12.9

13.5

ROA (%)4

2.8

3.3

3.6

ROE (%)5

7.9

7.4

8.0

Interest-bearing debt/EBITDA (Times)

8.9

7.8

6.9

Equity ratio (%)

22.6

24.5

26.3

Debt/equity (D/E) ratio (Times)6

2.3

2.0

1.7

1,271,406

1,271,406

1,271,406

20,811

20,751

20,913

Ratios:Others:Number of outstanding shares (Thousands)
Number of employees

1.	EBITDA = operating income + depreciation expenses + amortization of goodwill
EBITDA figures are rounded to the nearest ¥100 million.

2.	The Company (since fiscal 2020) and our subsidiary Hankyu Hanshin Properties Corp. (since fiscal 2019), as well as Hankyu Corporation and Hanshin Electric Railway

Co., Ltd. (both since fiscal 2018), have operated the Board Incentive Plan Trust, and the shares of the Company held by such trust are recorded as treasury shares in the
consolidated financial statements.

Therefore, when net assets per share and net income per share and net income per share after dilution vesting in the shareholders of the Parent Company are calculated,
the number of such shares is included in the treasury shares to be deducted.

3.	As there are no residual shares with a dilutive effect, net income attributable to owners of the parent per diluted share for fiscal 2020 has been omitted. For fiscal 2021,
net income attributable to owners of the parent per diluted share is omitted because a net loss per share was recorded despite the existence of dilutive shares.

4.	ROA = ordinary income / total assets (average of period-start and period-end totals)

5.	ROE = net income attributable to owners of the parent / equity (average of period-start and period-end totals)

99

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Financial Section andCorporate Data

Creating Real Value:
The Foundations

2015

20167

2017

20188

2019

2020

2021

20229

¥ 685,906¥ 746,792¥ 736,763¥ 760,252¥ 791,427¥ 762,650¥ 568,900¥ 746,217

94,026110,293

104,058

105,211

114,937

95,1702,066

39,212150,100

166,500

159,300

160,800

171,400

154,100

60,300100,700

85,590104,479

100,607

103,774

110,543

88,795(7,623)38,45077,62096,087

100,805

101,41088,56286,746(41,013)

38,592

54,201

69,971

71,302

66,36165,47654,859(36,702)21,41871,034

63,842

79,28873,991

66,56544,292(22,803)

17,251

68,11566,63986,21286,404

114,368

81,090108,472

120,30253,14353,70152,80053,27654,17256,542

55,733

59,107¥ 131,881¥ 124,838¥ 115,633¥ 135,821¥ 126,035¥ 123,086(52,529)(78,843)(84,845)(88,351)(116,160)(81,746)(47,278)(30,595)(43,242)(11,171)964(1,125)(1,978)

(480)

4,588

(1,848)（4,454）23,49722,363

22,53027,501

27,589¥2,279,638¥2,282,180¥2,349,831¥2,404,926

679,482

724,237

804,659

866,512955,828

916,570

899,523

866,758

¥

42.98

¥

277.88¥285.11¥

267.91¥(32,501)（128,498）¥

81,844(102,151)(96,442)

134,631

15,141

(375)

1,983

23,52625,222

29,422¥2,466,223¥2,489,081¥2,621,028¥2,722,841

915,381

937,672

909,985

915,363877,055

903,480

1,063,048

1,095,965¥

266.86¥225.69¥(151.72)

¥

88.89

42.95

277.67284.86267.81266.86

—

—

88.83

525.562,815.96

3,150.67

3,391.35

3,615.52

3,738.56

3,598.83

3,612.17

6.00

35.00

35.00

40.00

40.00

50.00

50.00

50.00

13.7

14.8

14.1

13.8

14.5

12.5

0.4

5.3

3.7

4.6

4.3

4.4

4.5

3.6

(0.3)

1.4

8.6

10.3

9.4

8.2

7.6

6.1

(4.1)

2.5

6.4

5.5

5.6

5.4

5.1

5.9

17.6

10.9

29.1

31.0

33.5

34.8

35.9

36.4

33.1

32.0

1.4

1.3

1.1

1.0

1.0

1.0

1.2

1.3

1,271,406

254,281254,281254,281254,281254,281254,281254,281

21,037

21,607

21,86022,152

22,65422,80023,192

22,869

6.	D/E ratio = interest-bearing debt / equity

7.	Regarding transactions related to such items as the export of mixed cargo of the International Transportation Business, the Company has changed the recognition ofrevenues from operations from net presentation to gross presentation as of fiscal 2017. As a result of this change, the amount of revenues from operations for fiscal 2016is the amount after retrospective application (gross presentation).

Further, the Company consolidated shares at the ratio of 5 shares to 1 share with an effective date of August 1, 2016. Net income per share, diluted net income

attributable to owners of the parent per share, net assets per share, dividend per share, and number of outstanding shares have been calculated based on the assumptionthat the said reverse stock split was executed on April 1, 2015.

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.	The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and other standards have been applied from the beginning of fiscal 2022,
and the key management indicators, etc., for fiscal 2022 indicate values after applying the above-mentioned accounting standard, etc.

Hankyu Hanshin Holdings Integrated Report 2022

100

Financial Section and Corporate Data

Business Risks
The various categories of risk to which business performance, stock price, ﬁnancial position and other aspects of the operations of
the Hankyu Hanshin Holdings Group are subject are detailed below. Information about future events that appears in this integrated
report was determined by the Group and was current as of March 31, 2022. These risks do not include all of the risks that theGroup could face.

1

Natural Disasters and Accidents

personal information, the Group manages databases containing

1.1 Risk from Epidemics

customer data and other personal information in each of its

If an infectious disease becomes widespread and restrictions arebusinesses. If information is leaked due to an unexpected incident,

imposed on the movement and lives of people in various ways,

claims for damages and loss of public credibility may substantially

it may materially affect the Company’s businesses. Specifically,affect the Group’s performance.

impacts may be seen in the Urban Transportation Business throughIn accordance with internal regulations such as Fundamental

effects such as a declining number of passengers on railways

Policies on Electronic Information Security, the Group takes

and other means of transportation; in the Real Estate Businessmeasures required to prevent leaks, falsification or unauthorizedthrough temporary closings and a decreasing number of visitors touse of information and to operate its information systems securely.

leased facilities with fewer hotel guests from overseas and weakerA framework is also in place to report and deal with problems

domestic demand; in the Entertainment Business through thepromptly. Regarding personal information, in addition to thecancellation of and attendance restrictions on professional baseball

above, the Group has established regulations, such as fundamental

games and performances of the Takarazuka Revue; and in the Travel

policies on the management of personal information, to ensure

Business through the cancellation of overseas and domestic tours.

compliance with laws and regulations related to the protection

Since the spread of COVID-19, the Group has been impactedof personal information at home and abroad, and developed

as described above. Although a degree of recovery was seena system to help ensure the appropriate use and protection of

in each business segment in fiscal 2022, depending on how thepersonal information. Relevant training programs for employees

pandemic situation evolves, the timing and degree by which

are also provided.

demand recovers, and other factors, the Group’s future businessperformance and financial position may fluctuate significantly.
Given the circumstances, in the wake of fiscal 2022 the Group3

Compliance

The Group aims to meet the expectations of all its stakeholders

has positioned fiscal 2023 as a crisis recovery phase, during which

and operate as a corporate group that is trusted and applauded

the Group is focused on recovering its pre-COVID-19 business,by them. One of the preconditions for achieving this goalincreasing profitability, and reducing fixed costs and turning themis a compliance-focused business attitude. In the event of

into variable costs, as well as improving its financial position.

noncompliance, claims for damages and loss of public credibility
may affect the Group’s business performance and financial position.

1.2 Natural Disasters
Operating across an extremely wide range of businesses in its

The Group promotes compliance management in each of its
business segment not only by strictly observing the Companies

Urban Transportation, Real Estate, Entertainment, Information andAct, Financial Instruments and Exchange Act, labor laws, tax laws,

Communication Technology, Travel, and International Transportation,

economic laws, various industrial laws, and other relevant laws,

the Group maintains a correspondingly large assortment of facilities

but also by developing various basic policies on respect for humannecessary for conducting business. In the event of earthquakes,

rights, prevention of corruption (bribery, etc.), tax affairs, and so on,

typhoons or other natural disasters, large-scale accidents or acts

as well as internal regulations, such as a code of corporate ethics,

of terrorism, the business performance and financial position of thethoroughly implementing business operations in line with these.

Group could be adversely affected by damage to these facilities,

To further enhance the effectiveness of these efforts, various

its customers and/or limitations placed on its business operations.

education and training programs are also implemented for employees

Especially in recent years, it has been pointed out that climate

to raise their awareness of compliance and improve their knowledge,change in the form of rising air and sea temperatures may increase

thereby preventing noncompliance. The Group has also establishedthe frequency of torrential rains and strong typhoons, and there isa whistleblower system that allows prompt detection of and dealing

an increasing risk of the above-mentioned adverse effects being

with events that threaten our compliance stance and record.

brought about by these natural disasters.
The Group is striving to minimize both the tangible and4

Finance (Interest-Bearing Debt)

intangible impacts of natural disasters and accidents. Efforts include

The Group makes continuous capital investments in each of its

investing in maintenance and renovation of existing facilities,business segments. Most of the necessary funds are procured

conducting seismic reinforcement work, analyzing and responding toby borrowing from financial institutions and issuing corporate

the impact of intensifying natural disasters, and developing systems

bonds, among other means. For this reason, in the case ofwith a priority on safety, especially at group companies engaged infuture increases in interest rates, changes in financial markets,the railway business and other forms of public transportation.

or downgrades in the Group’s credit rating due to changes in its

2

and raising additional funds on desirable terms, including funds

financial position, the Group’s interest expenses may increase,

101

Information Management

The Group uses information systems in each of its businessneeded to refinance interest-bearing debt that reaches maturity,

segments. If the functions of these systems are materially impacted

may become difficult.

by accidents, disasters, human errors or cyber-attacks, system

The balance of interest-bearing debt held by the Group as of

failures or malfunctions, information leaks or other events may

the end of March 2022 on a consolidated basis was ¥1,095,965

occur and disrupt the Group’s business operations whereby

million. Going forward, the Group plans to make capital investments

affecting its business performance and financial position. Regarding

required for maintaining and improving facilities, etc., as well as

Hankyu Hanshin Holdings Integrated Report 2022

Profile

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Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

growth investing toward the future, including investment in large-

Life). Additionally, the socioeconomic and business environments

scale projects. Amid the deep impact of the COVID-19 pandemic,

are changing rapidly, as illustrated by increasing awareness of

consolidated interest-bearing debt is expected to increase to a

SDGs and carbon neutrality 2050 (achieving a decarbonizedcertain degree.

society by 2050). Going forward, if these changes transform

The Group will continue to diversify its funding and securepeople’s lives, it may affect the existing business models of theits liquidity, take steps to avoid interest rate risks through fixedGroup, since it operates businesses closely related to the way

rate financing, and strive to maintain the soundness of its financial

people live.

position by controlling interest-bearing debt through cost reduction
and reductions in investment in maintenance and replacement.

In light of this situation, the Group has recently updated its
Hankyu Hanshin Holdings Group Long-Term Management Vision for2025 and formulated its Long-Term Vision: Toward 2040 . Going

5

Changes in Political, Economic and Social Environment

forward, we will progress with measures in line with the strategy

5.1 Legal Risk

outlined in the vision, respond to changes in socioeconomic andIn accordance with the stipulations of Article 3 of the Railway

business environments, and take into account people’s needs andBusiness Law, the Group must obtain separate permissions

preferences to offer a range of products and services, thereby

from the Ministry of Land, Infrastructure, Transport and Tourism

continuously improving corporate value of the Group.

(MLIT) for each category of railway operations on each routethat it intends to operate. Under Article 16 of the Law, a railway

5.5 Addressing Climate Change

operator must obtain MLIT’s approval for the passenger fares it

To cope with climate change, efforts are being made on a global

intends to set and on each occasion when it wishes to change

basis to reduce greenhouse gas emissions. Although the Group’s

the fares. Therefore, these regulations may limit the activities

railway, its core business, has less of an environmental impact thanof the Group’s railway business. Notably, no fixed periods areother means of transportation, the business is expected to requireprescribed for the permissions or approvals of MLIT.
In addition to the railway business, other businesses infuture investment or incur additional expense to respond to a more
decarbonized and recycling-based society. Moreover, introduction

which the Group engages are also subject to various lawsof a carbon tax system for greenhouse gas emissions and a rise in

and regulations. If these are tightened, the cost of regulatory

retail electricity prices (to promote renewable energy, etc.) may

compliance may increase, while failure to comply with regulations

be accompanied by further increases in cost. If the Group fails to

may limit the Group’s activities and affect the Group’s businessadjust to these social demands, it may face a decrease in revenue

performance, financial status, etc.

due to the loss of public credibility and/or financing difficulties.

The Group is working to minimize any such effects by

The Group recognizes that greenhouse gas reduction isinvestigating and ascertaining in advance information regarding

necessary for realizing a sustainable society. With“environmental

changes in existing regulations and the establishment of new

protection”set as one of the priority issues in its Sustainability

regulations and their respective impacts.

Declaration, the Group is moving forward with environmental
protection activities that contribute to achieving a more

5.2	Decline in the Market Value of Assets Held by Members ofthe Hankyu Hanshin Holdings GroupIn the case of a substantial decline in the market value of inventory

decarbonized and recycling-based society.
As part of such activities, the Group has agreed to and istaking steps in accordance with the recommendations of theassets, property and equipment and intangible assets, investment

Task Force on Climate-related Financial Information Disclosure

securities or other assets, the recording of impairment loss or(TCFD). In line with its disclosure framework, the Group has

valuation loss would likely have a negative impact on the businessspecified its“governance,”“risk management,”and“indicators andperformance and financial position of the Hankyu Hanshin Holdings

goals.”As for“strategies,”“risks and opportunities”in the urbanGroup.

transportation business and real estate business that are likely to
be significantly affected by climate change among its businesses

5.3	Declining Birth Rate

have been identified by the Group for analysis, including

In the Group’s mainstay Kyoto-Osaka-Kobe area, demographic

estimation of financial impact. For the purpose of evaluating andchanges accompanying the declining birth rate and othermanaging these risks and opportunities related to climate change,

factors are expected to decrease demand for railway, bus,

CO2 emission reduction target values (fiscal 2031: 46% reduction

taxi and other types of passenger transportation services, ascompared to fiscal 2014; fiscal 2051: net zero) have been set aswell as decrease demand in other business areas. In addition,group-wide Key Performance Indicators (KPI). Having set individual

securing personnel is likely to become difficult as an imbalance

KPIs for each business as well, the Group is working to improve

between supply and demand develops in the labor market. Suchthe resilience of its business to climate change.

situations could affect the business performance and financial
position of the Group.

5.6 International Operations

In addition to efforts to increase the resident population in

The Group’s Real Estate, Travel, International Transportation andareas along railway lines operated by the Group and to increaseother businesses are also active overseas and are, therefore,

the influx of visitors to these areas by capturing the demand

subject to various risk factors in each country, ranging fromgenerated by foreign tourists, etc., the Group will broadly

drastic changes in political and economic conditions to incidents

promote efforts to improve productivity by leveraging DX (Digitalof conflict, dispute or terrorism and the outbreak of infectious

Transformation) and by other means.

diseases. The Group is working to address these risks based onrisk analyses supported by the advice of lawyers, consultants

5.4 Social Changes (in Lifestyle and Workstyle)and other experts. However, in the case of an unexpected

There are ongoing social changes triggered by the COVID-19

development, the business performance and financial condition

pandemic, such as changes in people’s behaviors and locationsof the Group may be affected.

they are based in, and expansion of awareness of QOL (Quality ofHankyu Hanshin Holdings Integrated Report 2022

102

Financial Section and Corporate Data

Consolidated Balance Sheets
As of March 31, 2021 and 2022

Millions of yen

2021

2022

Assets:Current assets:
Cash and deposits¥27,546¥

31,331

Trade receivables (Note 7.1)

72,991

112,568

Land and buildings for sale

158,899

166,331

Finished products and merchandise

2,509

2,372

Work in progress

4,242

2,131

Materials and supplies

4,859

5,464

Other

54,60846,018

Allowance for doubtful receivables

(350)

(408)

325,307

365,811

Buildings and structures–net (Note 7.4)

556,183

646,407

Machinery, equipment and vehicles–net (Note 7.4)

63,11260,314

Land (Notes 7.4 and 7.6)

962,837

973,012Construction in progress

244,591

218,215

Other–net (Note 7.4)

20,99525,023

1,847,720

1,922,974

Total current assets
Noncurrent assets:
Property and equipment:

Total property and equipment (Notes 7.2 and 7.3)
Intangible assets:
Goodwill

12,014

9,655

Other (Notes 7.3 and 7.4)

21,90827,856

Total intangible assets

33,92337,512

Investments and other assets:
Investment securities (Notes 7.4 and 7.5)

333,743

316,231

Deferred tax assets

6,792

7,218

Net defined benefit asset

20,186

18,505

Other (Note 7.4)

53,612

54,917

(256)

(329)

Allowance for doubtful receivables
Total investments and other assets
Total noncurrent assets
Total assets

103

Hankyu Hanshin Holdings Integrated Report 2022

414,077

396,5442,295,721

2,357,030

2,621,028

2,722,841

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Financial Section andCorporate Data

Creating Real Value:
The Foundations

Millions of yen

2021

2022

Liabilities:
Current liabilities:
Trade payables¥

29,138¥40,699Accrued expenses

16,374

16,853

Short-term borrowings (Note 7.4)

151,235

145,737

Commercial paper

30,00050,000Current portion of bonds

10,0007,000

Lease obligations

3,206

3,834

Income taxes payable

2,192

6,380

Provision for bonuses

4,033

3,682

Other (Notes 7.1 and 7.4)

134,437

152,471

Total current liabilities

380,618

426,659

Long-term liabilities:
Long-term debt (Note 7.4)

673,387

649,476

Bonds

187,000

230,000

8,219

9,916

Lease obligations

176,839

176,516

Deferred tax liabilities related to land revaluation (Note 7.6)

Deferred tax liabilities

5,187

5,182

Net defined benefit liability

62,89062,795Long-term deferred contribution for construction

91,792

117,561

Other
Total long-term liabilities
Total liabilities

125,106

129,369

1,330,424

1,380,818

1,711,042

1,807,477

Net assets:
Shareholders’equity:
99,474

99,474

Capital surplus

146,772

147,358

Retained earnings

636,095

645,212

Common stockLess treasury stock, at cost

(48,701)(48,713)

Total shareholders’equity

833,640

843,332

24,60018,756

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land (Note 7.6)

3

7

5,483

5,499

Foreign currency translation adjustments

(615)

435

Cumulative adjustments related to retirement benefit plans

4,038

2,317

Total accumulated other comprehensive income

33,51127,016

Non-controlling interests (Note 7.6)

42,83445,014

Total net assets

909,985

915,3632,621,028

2,722,841

Total liabilities and net assets

Hankyu Hanshin Holdings Integrated Report 2022

104

Financial Section and Corporate Data

Consolidated Statements of Income
Years ended March 31, 2021 and 2022

Millions of yen

2021

Revenues from operations (Note 8.1)

¥

2022

568,900¥

746,217

Costs of revenues from operations:Operating expenses and cost of sales of transportation

542,159

679,865

566,833

707,005

122

179

—

7,167

24,674

Selling, general and administrative expenses (Note 8.2)
Total costs of revenues from operations (Note 8.3)

27,1392,066

Operating income

39,212Non-operating income:Interest income

980

Dividend income
Equity in income of affiliates

928

2,469

Miscellaneous income
Total non-operating income

2,609

3,572

10,885

8,885

8,516

2,754

3,131

Non-operating expenses:
Interest expenses

1,622

Equity in loss of affiliates
Miscellaneous expenses—

13,262

Total non-operating expenses
Ordinary income (loss)

11,648(7,623)38,4503,485

28,239Extraordinary income:Gain on contributions for construction

222

Gain on sales of investment securities

3,702

8,715

Employment adjustment subsidies

9,234

743

Other
Total extraordinary income

1,792

13,16742,9693,568

28,302Extraordinary loss:
Loss on reduction of noncurrent assets

19,382COVID-19-related losses (Note 8.4)

9,518

18,618Structural reform-related loss (Note 8.5)

—

4,989

Other

5,006

46,557

Total extraordinary loss
Income (loss) before income taxes

42,827(41,013)

38,592(10,683)

3,292

4,205

Income taxes – current
Income taxes – deferred

9,963(6,478)

Total income taxes

13,256(34,535)

Net income (loss)

25,3352,166

Net income attributable to non-controlling interests

3,916(36,702)

Net income (loss) attributable to owners of the parent

21,418

Consolidated Statements of Comprehensive Income
Years ended March 31, 2021 and 2022

Millions of yen

2021

Net income (loss)

¥

2022

(34,535)

Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

Foreign currency translation adjustments

Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income (Note 9)25,335

4,150(8,633)

(41)

—

32

(386)

4

2,191

3,904

(1,754)

4,071

108

11,732(8,084)Comprehensive income(22,803)

17,251

Owners of the parent(24,476)

15,837

Comprehensive income attributable to:Non-controlling interests

105

¥

Hankyu Hanshin Holdings Integrated Report 2022

1,672

1,413

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Financial Section andCorporate Data

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2021 and 2022

Millions of yen
Shareholders’equity

Balance as of March 31, 2020

Commonstock

CapitalsurplusRetainedearnings

Less treasury
stock, at cost

Total
shareholders’equity¥99,474¥146,598¥685,087¥(44,224)¥886,935

99,474

146,598

685,087(44,224)

886,935

Cumulative effects of changes in accounting policies
Restated balance—

Changes in items during the period:
Dividends from surplus(12,188)(12,188)

Net income (loss) attributable to owners of the parent(36,702)(36,702)

Reversal of revaluation reserve for land—

Purchase of treasury stock
Disposal of treasury stock(0)

Change in treasury stock of parent arising from

(4,660)(4,660)

187

187

176

transactions with non-controlling interest shareholders

176

Changes in equity due to capital increase of—

consolidated subsidiaries
Change in scope of consolidation

(2)

(100)

Changes in equity in affiliates accounted
for by equity-method treasury stock

(103)
(4)

(4)

Net changes in items other than shareholders’equity
Total changes in items during the period
Balance as of March 31, 2021—

174

(48,991)(4,477)(53,295)

99,474

146,772

636,095(48,701)

833,640

99,474

146,772

635,818(48,701)

833,363

Cumulative effects of changes in accounting policies
Restated balance

(277)

(277)

Changes in items during the period:
Dividends from surplus(12,126)(12,126)

Net income (loss) attributable to owners of the parent

21,41821,418

Reversal of revaluation reserve for land

8

Purchase of treasury stock
Disposal of treasury stock(0)

Change in treasury stock of parent arising fromtransactions with non-controlling interest shareholders
Changes in equity due to capital increase of
consolidated subsidiaries
Change in scope of consolidation

8
(47)

(47)

36

36

465

465

122

122

(0)

93

Changes in equity in affiliates accounted
for by equity-method treasury stock

92
(0)

(0)

Net changes in items other than shareholders’equity
Total changes in items during the period
Balance as of March 31, 2022

—

586

9,394

(12)

9,969

99,474

147,358

645,212(48,713)843,332

Hankyu Hanshin Holdings Integrated Report 2022

106

Financial Section and Corporate Data

Millions of yen
Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Balance as of March 31, 2020

Deferred gains
Revaluation
or losses onreserve for land
hedgesForeigncurrencytranslation
adjustments

Cumulative
adjustments
related toretirement
benefit plans¥13,792¥（28）¥5,511¥（427）¥（136）¥18,711

13,792

（28）

5,511

（427）

（136）

18,711

Cumulative effects of changes in accounting policies
Restated balance

Total
accumulated Non-controlling Total net assetsinterests
othercomprehensive
income¥32,025¥937,672

32,025

937,672——

Changes in items during the period:
Dividends from surplus(12,188)

Net income (loss) attributable to owners of the parent(36,702)

Reversal of revaluation reserve for land—

Purchase of treasury stock(4,660)

Disposal of treasury stock

187

Change in treasury stock of parent arising from176

transactions with non-controlling interest shareholders
Changes in equity due to capital increase of—

consolidated subsidiaries
Change in scope of consolidation(103)

Changes in equity in affiliates accounted(4)

for by equity-method treasury stock
10,808

32

(27)

(188)

4,175

14,80010,80825,608

Total changes in items during the period

Net changes in items other than shareholders’equity

10,808

32

(27)

(188)

4,175

14,80010,808(27,686)

Balance as of March 31, 2021

24,600

3

5,483

(615)

4,038

33,511

42,834

909,985

—

(7)

(284)

24,600

3

5,483

(615)

4,038

33,51142,826

909,701

Cumulative effects of changes in accounting policies
Restated balance
Changes in items during the period:
Dividends from surplus(12,126)

Net income (loss) attributable to owners of the parent

21,418

Reversal of revaluation reserve for land

8

Purchase of treasury stock(47)

Disposal of treasury stock

36

Change in treasury stock of parent arising from465

transactions with non-controlling interest shareholders
Changes in equity due to capital increase of122

consolidated subsidiaries
Change in scope of consolidation

92

Changes in equity in affiliates accounted(0)

for by equity-method treasury stock
Net changes in items other than shareholders’equity

107(5,843)

3

15

1,050

(1,721)(6,494)2,188(4,306)

Total changes in items during the period(5,843)

3

15

1,050

(1,721)(6,494)

2,188

5,662

Balance as of March 31, 2022

18,756

7

5,499

435

2,317

27,01645,014915,363

Hankyu Hanshin Holdings Integrated Report 2022

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Financial Section andCorporate Data

Creating Real Value:
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Consolidated Statements of Cash Flows
Years ended March 31, 2021 and 2022

Millions of yen

2021

2022

Cash flows from operating activities:
Income (loss) before income taxes¥(41,013)¥

38,592

Depreciation and amortization (Note 11.2)

57,502

59,945Structural reform-related loss

18,618—

Amortization of goodwill

2,508

2,366

Equity in (income) losses of affiliates

1,622(7,167)

Increase (decrease) in net defined benefit liability(1,112)(1,242)

197

128

Interest and dividend income(1,102)(1,108)Interest expenses

8,885

8,516

Loss on reduction of noncurrent assets

3,568

28,302Gain on contributions for construction(3,485)(28,239)(222)(3,680)Decrease (increase) in trade receivables(4,354)(38,870)

Decrease (increase) in inventories(36,799)(2,560)

Increase (decrease) in allowance for doubtful receivables

Loss (gain) on sales of investment securities

Increase (decrease) in trade payables(632)

11,561Other(2,039)13,774

Subtotal

2,140

80,318Interest and dividends received

4,129

3,148

Interest paid

(8,899)(8,557)

Income taxes (paid) refunded(29,871)

6,934

Net cash provided by operating activities(32,501)

81,844(136,958)(131,491)

Cash flows from investing activities:
Purchases of noncurrent assets
Proceeds from sales of noncurrent assets

19,911

681

Purchases of investment securities(14,137)(5,142)

Proceeds from sales of investment securities

1,664

9,187

Receipt of contributions for construction

29,24931,242Other
Net cash used in investing activities(1,879)(920)(102,151)(96,442)

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings(17,446)(14,797)

Net increase (decrease) in commercial paper

30,00020,000

Proceeds from long-term debt

103,350

30,360

Repayment of long-term debt

(34,696)(44,971)

Proceeds from new bonds issued

99,47449,712

Redemption of bonds(25,000)(10,000)

Purchases of treasury stock(4,660)(47)

Dividends paid

(12,188)(12,126)

Dividends paid to non-controlling shareholders of consolidated subsidiaries

(724)

(564)

(3,476)(2,424)

134,631

15,141

Effect of exchange rate changes on cash and cash equivalents

(354)

1,441

Increase (decrease) in cash and cash equivalents

(375)

1,983

Cash and cash equivalents at beginning of year

23,52625,222

Increase in cash and cash equivalents from newly consolidated subsidiary

2,072

2,215

Cash and cash equivalents at end of year (Note 11.1)

25,222

29,422Other
Net cash used in financing activities

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Financial Section and Corporate Data

Notes to the Consolidated Financial Statements
1.

Framework for Preparing Consolidated Financial Statements 

1.1

Method of preparation for consolidated financial statements

1.3

Special measures to ensure the appropriateness of
consolidated financial statements and other reports

The Company’s consolidated financial statements were prepared inaccordance with the “Regulations Concerning Terminology, Forms and

The Company makes special efforts to ensure the appropriateness of its

Preparation Methods of Consolidated Financial Statements” (Finance Ministry

consolidated financial statements and other reports. In addition to subscribing

Ordinance No. 28 of 1976).

to related publications, it has joined the Financial Accounting Standards
Foundation and participates in seminars and other events held by the

1.2

Audit verification

Foundation, audit firms and other relevant organizations to establish a system

The Company’s consolidated financial statements for the fiscal year ended

for understanding the accounting standards in detail and responding suitably

March 31, 2022 (April 1, 2021 to March 31, 2022) were audited by KPMG

to changes made to them. The Company also compiles with and provides

AZSA LLC, as per Article 193-2(1) of Japan’s Financial Instruments andcommon manuals for preparing the consolidated financial information on

Exchange Act.

a Groupwide basis and arranges training courses for accounting staff ataffiliates.

2.

Basis of Preparation of Consolidated Financial Statements 

2.1

Scope of consolidation

2.3

The number of consolidated subsidiaries—98.

Items related to fiscal year-ends, etc., for consolidated
subsidiaries

2.1.1 Number and names of consolidated subsidiaries

Of the consolidated subsidiaries, the closing date of HANKYU HANSHIN

The names of primary consolidated subsidiaries are listed on page 137.

EXPRESS (USA) INC., HANKYU HANSHIN EXPRESS (DEUTSCHLAND) GMBH

From the consolidated fiscal year ended March 31, 2022, BAN-BAN

and 22 other companies is December 31, and that of Nihon Protec Co., Ltd.

Networks and two other companies have been included in the scope ofis January 31. The consolidated financial statements have been prepared

consolidation in view of their increased significance.

using the financial statements based on the closing date of each company,and major transactions conducted between the individual closing dates and2.1.2 Names of major nonconsolidated subsidiaries

the consolidated closing date have been adjusted for as necessary for the

Hankyu Mediax Co., Ltd.

consolidation.

Nonconsolidated subsidiaries have been excluded from the scope of
consolidation because the total amounts of their entire assets, sales, net

2.4

income or loss (amount equivalent to equity interests), retained earnings

2.4.1 Valuation standards and methods for major assets(amount equivalent to equity interests) and other figures are limited, and theI.

effect on the consolidated financial statements as a whole is negligible.

Available-for-sale securities:a.

2.2

Items related to application of equity-method accounting

Accounting policies
Securities
Available-for-sale securities other than equity securities without market
prices:2.2.1 Number and names of affiliates for which equity method is applied

The market value method is applied. (Related valuation differences

Number of affiliates for which equity method is applied—11.

are directly included under net assets and the cost of securities sold isdetermined by the moving average method.)

The names of the primary companies are listed on page 137.

b. Equity securities without market prices:
The moving average cost method is applied.

2.2.2 Names of nonconsolidated subsidiaries and affiliates for which equity

For investments in limited liability investment partnerships and similar

method is not applied
The nonconsolidated subsidiaries including Hankyu Mediax Co., Ltd., andinvestments, however, the Company’s share of assets held by such

affiliates including OS Co., Ltd., to which the equity method does not apply

partnerships is recorded.

are accounted for using the cost method rather than the equity method
because the total amounts of their net income or loss (amount equivalent toII.

equity interests), retained earnings (amount equivalent to equity interests)

The market value method is applied.

Derivatives

and other figures are limited, and the effect on the consolidated financial
statements as a whole is negligible.

III. Inventoriesa.

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:
The moving average cost method is applied. (Balance sheet values arecalculated by writing down book values based on decreased profitability.)

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Financial Section andCorporate Data

Notes to the Consolidated Financial Statements

2.4.2

Depreciation methods for major depreciable assets

passes, performance obligation is deemed to have been fulfilled over theI.

Property and equipment (excluding leased assets)

period of validity of the commuter pass, and revenue is recognized accordinga.

Replacement assets of railway operations:to the validity period.

Replacement method (mainly the declining-balance method) is applied.
b. Other property and equipment:

Automobile

While property and equipment (excluding leased assets) are depreciatedThis business primarily provides transportation services with fixed-route

mainly by the declining balance method, some assets are depreciatedbuses, airport limousine buses, and highway buses, and generates incomeby the straight-line method.

from non-commuter passes and commuter passes. Income from non-

However, regarding the abovementioned “Replacement assets ofcommuter passes is transportation income generated by cash sales ofrailway operations” and “Other property and equipment,” depreciation

tickets and use of IC cards. Performance obligation is deemed to have beenof buildings acquired on or after April 1, 1998 (excluding facilities

fulfilled at the time each transportation service is provided to the customer,

attached to buildings) and depreciation of facilities and structures thatand at that point revenue is recognized. As for income from commuter

are attached to buildings and which were acquired on or after April 1,

passes, performance obligation is deemed to have been fulfilled over the2016 are calculated using the straight-line method.

period of validity of a commuter pass, and revenue is recognized according
to the validity period.

II.

Intangible assets (excluding leased assets)

Intangible assets (excluding leased assets) are amortized using the straight-

Retailing

line method.

This business is mainly engaged in product sales at shops inside railway

Internal-use software is amortized by the straight-line method over its
useful life (mainly 5 years).

stations. Revenue is recognized at the point products are handed over tothe customer. When the Group is deemed to be involved in product sales
as an agent, revenue is recognized at the net amount after deducting theIII. Lease assets

amount paid to the supplier from the amount received from the customer.

Lease assets are depreciated using the straight-line method with the leaseterm as the useful life and a residual value of zero (the amount of guaranteed

II.

residual value if there is an agreement for a residual value guarantee).

Leasing

Real estateThis business mainly owns and leases office buildings and commercial
2.4.3
I.

Accounting standards for significant transactions

Allowance for doubtful receivables

facilities in Kita-ku, Osaka and other areas. In accordance with theaccounting standards for lease transactions, revenue from the lease of

Allowance for doubtful receivables is provided based on the ratio of pastthese properties is recognized as “Revenue from other sources” over theloan loss experience for general accounts and individually estimatedlease agreement period.

uncollectible amounts for certain individual accounts.
Real estate sales and other businesses
II.

Provision for bonuses

This business mainly markets condominium units and detached houses

The Company recognizes as provision for bonuses the amount expected to(buildings with land) for which it is involved from land acquisition throughbe paid to employees as bonuses for the fiscal year.

construction, as well as residential land lots to customers. Based on thepurchase and sales agreement with the customer, it is obliged to deliver

2.4.4

Accounting methods for retirement benefits

the property. Performance obligation is deemed to have been fulfilled at

In calculating the amount of retirement benefit obligations, the benefit

the time each property is delivered to the customer, and at that point

formula method is used to attribute the estimated amount of retirement

revenue is recognized.

benefits to the period up to March 31, 2022.
Past service cost is recorded in expenses using the straight-line method

III. Entertainment

over a certain number of years (mainly 10 years), which is within the

Sportsaverage remaining years of service of the employees at the time whena.

Professional baseballThis business sells tickets to customers for the Hanshin Tigers

these costs are incurred.
Actuarial differences are recorded in expenses from the following

professional baseball team’s home games mainly held at Hanshin

year using the straight-line method over a certain number of years (mainly

Koshien Stadium. Performance obligation for this service is deemed to

10 years), which is within the average remaining years of service of thehave been fulfilled at the time each home game is completed, and atthat point revenue is recognized.

employees at the time when these costs are incurred.

b. Advertising signboards
Standards for recognition of significant revenues and expenses

This business places advertisements on signboards, etc. at Hanshin

Details of the main performance obligations in key businesses of the

Koshien Stadium upon request from advertisers or customers.

Company and its consolidated subsidiaries related to revenue from contracts

Performance obligation for this service is deemed to have been fulfilledwith customers and as to when such performance obligations are usuallyat the time an advertisement is displayed, and revenue is recognized

2.4.5

over the period the advertisement is displayed.

satisfied (point of time revenue is usually recognized) are as follows:I.

Urban transportationc.

Sales of food, drink, and goods

Railway operations

This business sells food, drinks, and Tigers-related products principally

This business mainly provides railway transportation services and generates

at Hanshin Koshien Stadium. Revenue from the sale of such products

income from non-commuter passes and commuter passes. Income fromis recognized at the point products are handed over to the customer.

non-commuter passes is transportation income generated by the use of

When the Group is deemed to be acting as an agent in product sales,

tickets and IC cards. Performance obligation is deemed to have beenrevenue is recognized at the net amount after deducting the amountfulfilled at the time each transportation service is provided to the customer,

paid to the supplier from the amount received from the customer.

and at that point revenue is recognized. As for income from commuter

Hankyu Hanshin Holdings Integrated Report 2022

110

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

2.4.7

Stage
a.

Significant hedge accounting methods

Method of hedge accounting

The Takarazuka Revue

I.

This business sells tickets to customers and stages performances of theDeferred hedge accounting is applied.

Takarazuka Revue held mainly at the Takarazuka Grand Theater andExceptional accounting applies to interest rate swaps that satisfy the

the Tokyo Takarazuka Theater. Performance obligation for this service

requirements for exceptional accounting treatment for interest rate swaps.

is deemed to have been fulfilled at the time a performance is staged,
and at that point revenue is recognized.
b. Sales of food, drink, and goods

Designation accounting applies to foreign currency-denominatedreceivables and payables that have forward exchange contracts and which
satisfy the requirements for designation accounting.

This business sells food, drinks, and Takarazuka-related products
principally at the Takarazuka Grand Theater. Revenue from the sale ofII.

such products is recognized at the point products are handed over toMain hedging instruments and hedged items are as follows:

the customer.

a. Hedging instruments: Forward exchange contracts, currency swap

Hedging instruments and hedged items

contracts and currency option contracts
Hedged items: Foreign currency receivables and payables and future

IV. Information and communication technology

foreign currency transactions

Information servicesa.

Entrusted software development

b. Hedging instruments: Interest rate swap contracts and interest rate

This business plans, designs, and develops software based on contracts

option contracts

with customers, and is obliged to deliver the software to customers.

Hedged items: Loans payable and bonds

Such contracts entail obligation mainly over a certain period of time,and revenue is recognized according to the degree of progress madeIII. Hedging policy

in fulfilling the performance obligation. Progress is measured based on

The Group is exposed to the risk of foreign exchange and interest rate

the percentage of costs incurred by the end of each reporting period

fluctuations and uses derivatives to hedge risks.

to the total expected costs.
b. System operation and maintenance services

IV. Method for evaluating hedge effectivenessThis business mainly provides software operations and maintenance

Other than when the effectiveness of hedges is obvious, hedge effectivenessservices for a certain period of time to customers to whom systems areis evaluated semiannually using the comparison and analysis method.

delivered. Performance obligation for such services is deemed to havebeen fulfilled over a period of time, and revenue is recognized over thecontract period with the customer.

V. Other risk management methods concerning hedge accounting
Internal rules regarding the segregation of duties, maximum transaction
amounts, etc., have been established for the use of derivative transactions

Broadcasting and communications

based on which derivative transactions are used. The implementation andThis business mainly provides internet, cable television, and fixed-line

management of derivative transactions are carried out by the accounting

telephone services. Performance obligation for such services is deemed todepartment with the approval of the decision makers in each Group

have been fulfilled over a period of time, and revenue is recognized overcompany. An internal control system has been developed to ensure thatthe contract period with the customer.

the contract signing and termination comply with the internal rules.

V. Travel

2.4.8This business mainly offers agent-organized tour packages. Performance

Goodwill is amortized, in general, in equal amounts over 5 years. The

obligation for these services is deemed to have been fulfilled at the time agoodwill resulting from the management integration with Hanshin Electric

tour ends, and at that point revenue is recognized.

Railway Co., Ltd. in the fiscal year ended March 31, 2007 is being amortized

Method and period of amortization of goodwill

in equal amounts over 20 years.
VI. International transportation
As a forwarder, this business mainly carries out transportation in international

2.4.9

logistics. For exports, the performance obligation is deemed to have been

Scope of cash and cash equivalents included in consolidated
statements of cash flows

satisfied at the time cargo is loaded onto an aircraft, etc., and for imports, at

In preparing the consolidated statements of cash flows, cash on hand, readily

the time of delivery, and revenue is recognized at these points, respectively.

available deposits and short-term highly liquid investments without material
risk of change in value and with maturities not exceeding three months at theVII. Hoteltime of purchase are considered to be cash and cash equivalents.

This business mainly provides customers with services related to accommodation,banquets, and restaurants, at directly managed hotels. Performance obligation for2.4.10 Other significant matters for preparing consolidated financial

these services is deemed to have been fulfilled at the time a service is provided
to the customer, and at that point revenue is recognized.

statements
I.

Accounting for contributions for construction in railway operations

The Company receives contributions for construction from local governments
2.4.6

Basis for converting significant assets and liabilities in foreignand other organizations that cover a portion of construction expenses arising

currencies into Japanese yenfrom the construction of continuous grade separations in railway operations.

The assets and liabilities of overseas subsidiaries are converted into yen

When construction is completed, noncurrent assets acquired as a result of

based on the spot exchange rate on the balance sheet date, and income

accepting these contributions for construction are recognized at acquisitionand expenses of overseas subsidiaries are converted into yen based

cost after deducting the amount of the contributions.

on the average exchange rate during the relevant period. Differences inIn the consolidated statements of income, gain on contributions forconversion are included in foreign currency translation adjustments andconstruction is recognized in extraordinary income, and the acquisition

non-controlling interests in the net assets section.

cost of noncurrent assets, after deducting the amounts equivalent to thecontributions for construction, is recognized in extraordinary loss as loss on
reduction of noncurrent assets.

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Notes to the Consolidated Financial Statements

Adoption of consolidated tax payment system

Accounting” (ASBJ Guidance No. 28, February 16, 2018), but applied

A consolidated tax payment system has been adopted.

provisions of pre-amended tax laws when calculating the amounts ofII.

deferred tax assets and liabilities that related to transitioning to a group
III.	Application of tax effect accounting for the transition from a
consolidated tax payment system to a group taxation system
In the next consolidated fiscal year, the Company and some of its domestic

taxation system, established under the Act on the Partial Revision of the
Income Tax Act, etc. (No. 8, 2020), and related amendments of tax laws fortransitioning to a single tax payment system.

consolidated subsidiaries will adopt a group tax sharing system toAt the beginning of the next consolidated fiscal year, we plan to apply

replace the ongoing consolidated taxation system. However, with regard

the “Practical Solution on the Accounting and Disclosure Under the Groupto Paragraph 3 of the “Practical Solution on the Treatment of Tax EffectTax Sharing System” (PITF No. 42, August 12, 2021), which stipulates the

Accounting for the Transition from the Consolidated Taxation System toaccounting treatment and disclosure of corporate tax, local corporate tax

the Group Tax Sharing System” (PITF No. 39, March 31, 2020), we didand tax effect accounting when applying the group tax sharing system.

not follow Paragraph 44 of the “Implementation Guidance on Tax Effect3.

Significant Accounting Estimates 

Fiscal year ended March 31, 2021

assets that are considered recoverable may fluctuate and have a significant

Accounting estimates are reasonably calculated based on the information

impact on the consolidated financial statements for the next fiscal year.

available when preparing the consolidated financial statements. Among theamounts recorded in the consolidated financial statements for the fiscal year

3.2

ended March 31, 2021 based on accounting estimates, the items that may

3.2.1	Amount recorded in the consolidated financial statements for thehave a significant impact on the consolidated financial statements for the
next fiscal year are as follows.

Impairment of noncurrent assets
fiscal year ended March 31, 2021

As stated in Note 8, “Consolidated Statements of Income” an impairment
loss of 9,676 million yen for noncurrent assets held by Hankyu Hanshin

3.1

Recoverability of deferred tax assets

3.1.1	Amount recorded in the consolidated financial statements for the

Hotels Co., Ltd. was recorded. Property and equipment held by thecompany was 51,144 million yen.

fiscal year ended March 31, 2021
Deferred tax assets of 63,542 million yen (amount before offsetting
deferred tax liabilities)

3.2.2	Other information that assists users of financial statements inunderstanding the nature of the estimates
I.	Method used to calculate the amounts recorded in the consolidated

3.1.2	Other information that assists users of financial statements inunderstanding the nature of the estimates
I.	Method used to calculate the amount recorded in the consolidated
financial statements for the fiscal year ended March 31, 2021

financial statements for the fiscal year ended March 31, 2021
In principle, the Group classifies its assets into groups by business segment
as determined for management purposes or on an individual property basis.
If there are indications of impairment, book value is compared to theDeferred tax assets were recorded based on future taxable income,total amount of undiscounted future cash flows obtained from the asset

etc., estimated in the medium-term management plan pursuant to thegroup to determine whether it is necessary to recognize an impairment loss.

“Implementation Guidelines on Recoverability of Deferred Tax Assets” (ASBJ

Based on the result of the determination if recognizing an impairment loss is

Guidance No. 26).

necessary because the total amount of undiscounted future cash flows falls
below the book value, then the book value is reduced to the recoverable

II.	Major assumptions used to calculate the amounts recorded in the
consolidated financial statements for the fiscal year ended March 31,
2021

amount (net realizable value or value in use, whichever is higher), and the
reduction in book value is recognized as an impairment loss.
In the Hotel Business, some hotels continued to have operating loss

Estimates of future taxable income were based on the medium-termand others were considered to have indications of impairment due to the

management plan. Additionally, the following assumptions were made toconsiderable deterioration in the business environment, amid the COVID-19

reflect the effects of COVID-19 on the accounting estimates.

pandemic. As a result for hotels requiring recognition of an impairment loss,

Socioeconomic activities that affect the Group are expected togradually recover through three roughly classified steps as below.

the book value of such hotels was reduced to the recoverable amount, andthe reduction in the book value was recorded as an impairment loss.

First step (until March 2022): The movement of people resumes inneighborhoods in Japan and gradually extends beyond. The effects ofphysical distancing are also gradually mitigated.
Second step (April 2022-March 2023): People come and go not only
within Japan but throughout the world, recovering gradually.
Third step (April 2023 and beyond): The impact of COVID-19

II.	Major assumptions used to calculate the amounts recorded in the
consolidated financial statements for the fiscal year ended March 31, 2021
Estimates of future cash flows were based on the medium-term management
plan, and the impact of COVID-19 was based on the same assumptions as
in Section 3.1, “Recoverability of deferred tax assets” stated above.

diminishes and domestic and overseas economic activities recover to aconsiderable extent.
However, the Group considers that its business environment will not
fully return to its pre-COVID-19 state even in the third step.

III.	Impact on consolidated financial statements for the next fiscal year
Future cash flows may be affected by uncertain future economic conditions
and fluctuations in market prices in addition to the COVID-19 infection
status. If actual results deviate from estimates, it may have a significant

III.	Impact on the consolidated financial statements for the next fiscal year

impact on the consolidated financial statements for the next fiscal year.

The timing and amount of taxable income may be affected by uncertain future
economic conditions and COVID-19 infection status. If the actual timing andamount of taxable income differ from estimates, the amount of deferred tax

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Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

Fiscal year ended March 31, 2022

management plan. Additionally, the following assumptions were made to

Accounting estimates are reasonably calculated based on the informationreflect the effects of COVID-19 on the accounting estimates.

available when preparing the consolidated financial statements. Among theamounts recorded in the consolidated financial statements for the fiscal year

Socioeconomic activities that affect the Group are expected to gradually
recover through three roughly classified steps as below.

ended March 31, 2022 based on accounting estimates, the items that may

First step (until September 2022): The movement of people resumes

have a significant impact on the consolidated financial statements for thein neighborhoods in Japan and gradually extends beyond. The effects ofnext fiscal year are as follows.

physical distancing are also gradually mitigated.

Recoverability of deferred tax assets

only within Japan but throughout the world, recovering gradually.

Second step (October 2022-September 2023): People come and go not
Amount recorded in the consolidated financial statements for the fiscal year

Third step (October 2023 and beyond): The impact of COVID-19 diminishes,

ended March 31, 2022

and domestic and overseas economic activities recover to a considerable

Deferred tax assets of 59,531 million yen (amount before offsetting deferred

extent.

tax liabilities)

However, the Group considers that its business environment will not fully
return to its pre-COVID-19 state even in the third step.

Other information that assists users of financial statements in understanding
the nature of the estimates

III.	Impact on the consolidated financial statements for the next fiscal year

I.	Method used to calculate the amount recorded in the consolidated

The timing and amount of taxable income may be affected by uncertain futurefinancial statements for the fiscal year ended March 31, 2022

economic conditions and COVID-19 infection status. If the actual timing andDeferred tax assets were recorded based on future taxable income, etc.,

amount of taxable income differ from estimates, the amount of deferred tax

estimated in the medium-term management plan pursuant to the “Implementation

assets that are considered recoverable may fluctuate and have a significant

Guidelines on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26).

impact on the consolidated financial statements for the next fiscal year.

II.	Major assumptions used to calculate the amounts recorded in the
consolidated financial statements for the fiscal year ended March 31, 2022
Estimates of future taxable income were based on the medium-term

4.

Changes in Accounting Policies 

4.1	Application of Accounting Standard for Revenue Recognitionand other standards

The application of the Revenue Recognition Accounting Standard and otherstandards is in accordance with the transitional treatment stipulated in the

The“Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29,

proviso of Paragraph 84 of the Revenue Recognition Accounting Standard.

March 31, 2020; hereinafter“Revenue Recognition Accounting Standard”)

The cumulative effect of the retrospective application, assuming the new

and other standards are being applied from the beginning of the current

accounting policy had been applied to periods prior to the beginning of

consolidated fiscal year. Accordingly, revenue is now recognized at the time

the current consolidated fiscal year, was added to or subtracted from thecontrol of the promised goods or services is transferred to the customer

beginning balance of retained earnings of the current consolidated fiscal year,

at the amount of money expected to be received from the customer inand thus the new accounting policy was applied, having started from the saidexchange for the promised goods or services.

beginning balance.

Major changes resulting from the application of the Revenue Recognition
Accounting Standard and other standards are as follows:

As a result, revenue from operations increased by 35,364 million yen,operating expenses increased by 35,320 million yen, and operating income,ordinary income, and income before income taxes increased by 44 million• Railway operations: Commuter passes
Previously, a monthly prorated amount was recognized as revenue basedon the date of issue. Now, a monthly prorated amount is recognized asrevenue based on the effective start date.

yen each. In addition, the beginning balance of retained earnings decreasedby 277 million yen.
The impact on per share information is immaterial.
In line with the transitional treatment stipulated in Paragraph 89-3of the Accounting Standard for Revenue Recognition, notes to“Revenue• Travel: Tour packages

Recognition”concerning the previous consolidated fiscal year are not stated.

Previously, revenue was recognized at the net amount after deducting
purchasing and other costs from the amount received from the customer.
Considering it is obliged to provide customers with transportation,

4.2	Application of the Accounting Standard for Fair Value
Measurement and other standards

accommodation, and other travel-related services, the Group is deemed

The Group began applying the“Accounting Standard for Fair Value Measurement”

to be acting as a principal, and now revenue is recognized at the gross(ASBJ Statement No. 30, July 4, 2019; hereinafter“Fair Value Measurement

amount received from the customer for these services.

Accounting Standard”) and other standards at the beginning of the current
consolidated fiscal year. The Group has decided to apply the new accounting• Retailing: Consignment buying

113

policies outlined in the Fair Value Measurement Accounting Standard andPreviously, revenue was recognized at the gross amount received fromother standards for the foreseeable future pursuant to the transitional

the customer. However, the Group is deemed to be acting as an agent

treatments stipulated in Paragraph 19 of the Fair Value Measurementin providing customers with goods or services, and now revenue is

Accounting Standard and Paragraph 44-2 of the“Accounting Standard forrecognized at the net amount after deducting the amount paid to the

Financial Instruments”(ASBJ Statement No. 10, July 4, 2019). This change insupplier from the amount received from the customer.

accounting policies has no impact on the consolidated financial statements.

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
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Creating Real Value:
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Financial Section andCorporate Data

Notes to the Consolidated Financial Statements

Furthermore, matters regarding the breakdown of financial instrumentsof the“Implementation Guidance on Disclosures about Fair Value of Financial

by each fair value level are included in the Note 13,“Financial Instruments.”

Instruments”(ASBJ Guidance No. 19, July 4, 2019), the notes concerning the

However, pursuant to the transitional treatments stipulated in Paragraph 7-4

previous consolidated fiscal year are not stated.

5.

Standards and Guidance Not Yet Adopted 

5.1

Accounting Standard for Fair Value Measurementa certain review, the Guidance mentioned that those reviews would be

The following guidance was issued but not yet adopted.

implemented for approximately one year after the announcement of the•	“Implementation Guidance on Accounting Standard for Fair Value“Accounting Standard for Fair Value Measurement.” Now those points forreview were amended and the revised Guidance was announced.

Measurement”(ASBJ Guidance No. 31, June 17, 2021)

5.1.2 Effective date

5.1.1	Outline
The “Implementation Guidance on Accounting Standard for Fair Value

The guidance is to be effective from the beginning of the fiscal year ended

Measurement” (ASBJ Guidance No. 31) was revised on June 17, 2021.

March 31, 2023.

When the Guidance was first announced on July 4, 2019, as the review
of “fair value measurement of investment trusts” was considered to take a

5.1.3 Effects of the application of the standards

certain period of time for deliberation with related parties and as the notes

The Company and its consolidated domestic subsidiaries are currently

on fair values of “investments in partnerships for which an amount equivalent

in the process of determining the effects of these new standards on theto the interest is carried on the balance sheet at net amount” requiredconsolidated financial statements.

6.

Additional Information 

6.1

Performance-based stock compensation plan for directors,

Properties Corp.

etc., of the Company

The System uses an officer compensation BIP (Board Incentive Plan)

6.1.1 Outline of transaction

trust under which shares in the Company will be provided to, and money

To further enhance motivation to improve corporate value and business

equivalent to the exchange value of shares in the Company will be paid toperformance, and to provide an incentive to improve shareholder value, thedirectors and others based on performance and position.

Company has introduced a stock compensation system (hereinafter referred
to as the “System”) for directors of the Company (excluding those who are

6.1.2 Shares in the Company remaining under the trust

also members of the audit and other committees) in a position of chairman

Shares in the Company remaining under the trust were listed as treasury

or president.

stock in the net assets section on a book value basis for trust (excluding

Moreover, Hankyu Corporation, Hanshin Electric Railway Co., Ltd., andancillary expenses). The book value of and the number of shares of treasury

Hankyu Hanshin Properties Corp. have adopted the System for full-time

stock at the end of the fiscal year ended March 31, 2021 were 1,610 million

directors and corporate officers, excluding outside directors and nonresidents

yen and 408,268 shares, and at the year ended March 31, 2022, the amountsof Japan and employees of other companies on loan to Hankyu Hanshinwere 1,575 million yen and 399,468 shares, respectively.

7.
7.1

Consolidated Balance Sheets 
Balances of receivables, contract assets and contract liabilities
originating from contracts with customers are as follows:

7.3

Accumulated contributions for construction directly deductedfrom the acquisition cost of noncurrent assets
Millions of yen

Millions of yen
Receivables from contracts with customers¥ 104,967

Contract assets

6,586

Contract liabilities

41,573

7.2

2021

2022

¥ 447,657¥ 474,732

Accumulated depreciation of property and equipment
Millions of yen
2021

2022

¥ 1,180,943¥ 1,217,145

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Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

7.4

Pledged assets and secured liabilities

The following table shows the assets pledged as collateral. Amounts in parentheses () indicate those related to a railway foundation.

Millions of yen
2022

2021
Property and equipment:¥ 198,766¥ (198,766)¥ 206,416

Machinery, equipment and vehicles

Buildings and structures

51,725(51,725)

49,797¥ (206,416)(49,797)Land

241,048(241,048)

240,971(240,971)

Other

2,387

(2,387)2,014(2,014)

118

(118)

109

(109)

Intangible assets:
Other
Investments and other assets:
Investment securities

231

(—)

159

(—)

Other

441

(—)

524

(—)

Total

494,720(494,047)

499,994(499,310)

In addition to the above, the Company pledged investment securities (fiscal year ended March 31, 2021: 800 million yen, fiscal year ended March 31, 2022:
800 million yen) as collateral for loans of third parties.
The following table shows the secured liabilities. Amounts in parentheses () indicate those related to a railway foundation.
Millions of yen
2022

2021
Current liabilities:
Short-term borrowings¥

10,050

Other¥(10,050)

135

¥

(—)

18,531¥(18,531)

123(—)

Long-term liabilities:
Long-term debt

120,322(120,322)

117,050(117,050)

Total

130,507(130,372)

135,705(135,582)

7.5

The following table shows the securities of nonconsolidated subsidiaries and affiliates.
Millions of yen

Investment securities

2021

2022

¥ 257,867¥ 258,898

7.6

7.7

Two consolidated subsidiaries and an equity-method affiliate revaluated

The Company and its subsidiaries have provided a liability guarantees forland for business use based on the Law Concerning Revaluations of Landloans of the companies, etc., listed below.

(Law No. 34, promulgated on March 31, 1998) and the Law to Partially
Modify the Law Concerning Revaluations of Land (Law No. 19, promulgatedon March 31, 2001). Of the valuation differences identified as a result of
this, the consolidated subsidiaries recorded the amount corresponding to
the taxes on the valuation difference in the liability section as “Deferred tax
liabilities related to land revaluation” and the amount attributable to minority
shareholders as “Non-controlling interests.” The amount remaining after
subtracting these was recorded in the net assets section as “Revaluation

Contingent liabilities

Fiscal year ended March 31, 2021
Millions of yen
Nishi-Osaka Railway Co., Ltd.

¥ 16,389

Borrowers on loans for purchases of land and buildings

13,953

Overseas affiliates

6,728

Other (five companies)
Total

285
37,356

reserve for land.” The equity-method affiliate recorded the amountcorresponding to its equity in the valuation difference (after subtracting taxes)in the net assets section as “Revaluation reserve for land.”Millions of yen•	Revaluation methodThe revaluation amounts were determined based on the revaluatedvalue of noncurrent assets provided for in Article 2, Paragraph 3 ofthe Enforcement Ordinance for the Law Concerning Land Revaluation(Ordinance No. 119, promulgated on March 31, 1998).

Millions of yen

115

Hankyu Hanshin Holdings Integrated Report 2022

Nishi-Osaka Railway Co., Ltd.

2021

2022

¥ (6,274)¥ (6,040)¥ 15,525

Overseas affiliates

8,992

Borrowers on loans for purchases of land and buildings

8,089

Other (three companies)
Total•	Date of revaluation: March 31, 2002

Difference between the market value
as of March 31 of the lands for which
reevaluation was made and the bookvalue of after reevaluation

Fiscal year ended March 31, 2022

512
33,120In addition to the above, a subsidiary of the Company submitted letters ofawareness for management guidance (fiscal year ended March 31, 2021:
1,196 million yen, fiscal year ended March 31, 2022: 1,459 million yen) in
connection with the fund procurement of overseas affiliates.

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Financial Section andCorporate Data

Notes to the Consolidated Financial Statements

8.

Consolidated Statements of Income 

8.1

The breakdown of revenue from operations is as follows:

8.3

The retirement benefit expenses and the main expense items
and monetary amounts within the amounts of allowance andMillions of yen
Revenue from contracts with customers¥ 668,522

Revenue from other sources

77,694

Total

746,217

provision included in the costs of revenues from operations areshown below.
Millions of yen
Retirement benefit expenses

8.2

The breakdown of selling, general and administrative expenses

2021

2022

¥ 7,220¥ 6,285

4,229

3,854

Provision for bonuses

is shown below.
Millions of yen
Personnel expenses

2021

2022

¥ 12,392¥ 13,381

Expenses

8,002

9,205

Taxes

904

1,075

Depreciation and amortization

865

1,110

Amortization of goodwill

2,508

2,366

Total

24,674

27,139

8.4
COVID-19-related losses include fixed costs incurred during the period of business suspension and costs directly required for preparation and cancellation of events
under the state of emergency, etc., issued by the government. Such costs were recorded under extraordinary loss.

8.5

Structural reform-related loss

Fiscal year ended March 31, 2021
In recent years, Hankyu Hanshin Hotels Co., Ltd., a consolidated subsidiary of the Company, has been in a severe business environment, especially in the Kinki region,
where competition between hotels has intensified. Under such circumstances, greatly affected by the COVID-19 pandemic, some of its hotels were closed during
the state of emergency that was issued twice. The occupancy rate of the guest rooms and the use of the general banquet facilities plummeted throughout theperiod. The use of restaurants, etc., was also sluggish. Furthermore, going forward, it seems that it will take a considerable amount of time for profits to recover.
For these reasons, the Group has decided to move ahead with drastic structural reforms, including reforms for all aspects of “business,” “personnel” and “finance,”
to establish a firmer business structure. Consequently, impairment loss (9,676 million yen) and a provision of allowance for loss on withdrawal of property andequipment (6,786 million yen) were recorded under structural reform-related loss of extraordinary loss.
Millions of yen
Use
Hotel business assets (14)Type
Buildings and structures, etc.

RegionAmountOsaka, Hyogo, Tokyo, etc.

¥ 9,676

8.5.1 Method of asset grouping
Our Group includes each business or property as group assets for account management purposes.
8.5.2 Background to recognizing impairment loss
Amid the COVID-19 pandemic and due to other factors, some hotels continued to have operating loss. It was determined that other hotels had indications of
impairment due to a significant deterioration in the business environment, and decisions were made as to whether it was necessary to recognize impairment losses.
As a result, the book value of hotels for which an impairment loss needs to be recognized was reduced to the recoverable amount (9,676 million yen).
8.5.3 Breakdown of loss on impairment
Millions of yen
Buildings and structures¥ 4,614

Land, etc.

1,700

Other

3,361

Total

9,676

8.5.4 Method used to calculate recoverable value
The recoverable value is based on value in use or net realizable value.
Value in use was calculated by discounting future cash flows by 4.0%. For net realizable value, the memorandum value, etc., is used.

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Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

9.

Consolidated Statements of Comprehensive Income Reclassification adjustments and tax effects related to other comprehensive income
Millions of yen
2022

2021
Valuation difference on available-for-sale securities:
Increase (decrease) during the year¥

Reclassification adjustments

5,881

¥

(7,834)(34)(3,680)Subtotal, before tax

5,846(11,515)

Tax (expense) or benefit(1,695)

2,881

Valuation difference on available-for-sale securities

4,150(8,633)

Deferred gains or losses on hedges:
Increase (decrease) during the year

49

5

Reclassification adjustments——

Subtotal, before tax

49

5Tax (expense) or benefit

(17)

(1)

Deferred gains or losses on hedges

32

4

Revaluation reserve for land:
Increase (decrease) during the year——

Reclassification adjustments———

Subtotal, before tax—

Tax (expense) or benefit

(41)

—

Revaluation reserve for land

(41)

—

(386)

2,191

Foreign currency translation adjustments:
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax (expense) or benefit
Foreign currency translation adjustments

—

—

(386)

2,191

—

—

(386)

2,191

5,591

(1,764)Remeasurements of defined benefit plans:
Increase (decrease) during the year
Reclassification adjustments

123

(918)

Subtotal, before tax

5,714(2,682)Tax (expense) or benefit(1,809)928

Remeasurements of defined benefit plans

3,904(1,754)

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 for using equity method
Total other comprehensive income

4,009

310

62

(202)

4,071

108

11,732(8,084)

10. Consolidated Statements of Changes in Net Assets 
Fiscal year ended March 31, 2021

10.1

Types and total number of outstanding shares, and types and number of outstanding shares of treasury stock(Thousands of shares)
Number of shares as of April 1, 2020

Increase in number of shares

Decrease in number of shares

Number of shares as of March 31, 2021

254,281——254,281254,281——254,281

12,0361,337

45

13,327

12,0361,337

45

13,327

Number of shares issued:
Common stock
Total
Treasury stock, at cost:
Common stock (Notes 1, 2 and 3)
Total
Notes:
1.	The number of shares of treasury stock at the end of the fiscal year ended March 31, 2021 included 408,268 shares in the Company owned by the officer’s
compensation BIP trust.
(Overview of reasons for fluctuations)
2.	The increase of 1,337 thousand shares of treasury stock of common stock consisted of 1,235 thousand shares acquired upon the resolution of the Board of
Directors’ meeting, 86 thousand shares acquired by the officer’s compensation BIP trust, 12 thousand shares created by the purchase of odd-lot shares and2 thousand shares due to a change in the equity ratio against affiliates to which the equity method is applicable.
3	The decrease of 45 thousand shares of treasury stock of common stock consisted of 45 thousand shares delivered by the officer's compensation BIP trust (theCompany’s shares) and 0 thousand shares due to the sale of odd-lot shares.

117

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Notes to the Consolidated Financial Statements

10.2

Items concerning stock acquisition rights

There is no relevant item.

10.3

Items related to dividends

10.3.1Dividends paid
Dividends paid

Dividend per share(Millions of yen)

(Yen)

(Resolution)

Type of shares

June 17, 2020
Annual General Meetingof Shareholders

Common stock¥ 6,094

November 6, 2020
Board of Directors

Common stock

6,094

Record date

Effective date¥ 25

March 31, 2020

June 18, 202025

September 30, 2020

December 1, 2020

Notes:
1.	The dividends by a resolution at the Annual General Meeting of Shareholders on June 17, 2020 included 9 million yen of dividends for the shares in the
Company owned by the officer’s compensation BIP trust.
2.	The dividends by a resolution of the Board of Directors on November 6, 2020 included 8 million yen of dividends for the shares in the Company owned by theofficer’s compensation BIP trust.
10.3.2

Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
(Resolution)

Type ofsharesJune 16, 2021
Annual General Meetingof Shareholders

Commonstock

Dividends paid
(Millions of yen)
¥ 6,063

Source ofdividends

Dividend per share(Yen)

Retainedearnings¥ 25

Record date

Effective date

March 31, 2021

June 17, 2021

Note: The total amount of dividends includes 10 million yen of dividends for the shares in the Company owned by the officer’s compensation BIP trust.
Fiscal year ended March 31, 2022

10.4

Types and total number of outstanding shares, and types and number of outstanding shares of treasury stock(Thousands of shares)
Number of shares as of April 1, 2021

Increase in number of shares

Decrease in number of shares

Number of shares as of March 31, 2022

254,281——254,281254,281——254,281

13,32713

913,332

13,32713

913,332

Number of shares issued:
Common stock
Total
Treasury stock, at cost:
Common stock (Notes 1, 2 and 3)
Total
Notes:
1.	The number of shares of treasury stock at the end of the fiscal year ended March 31, 2022 included 399,468 shares in the Company owned by the officer’s
compensation BIP trust.
(Overview of reasons for fluctuations)
2.	The increase of 13 thousand shares of treasury stock of common stock consisted of 13 thousand shares created by the purchase of odd-lot shares.
3	The decrease of 9 thousand shares of treasury stock of common stock consisted of 8 thousand shares delivered by the officer's compensation BIP trust,
0 thousand shares due to the sale of odd-lot shares and 0 thousand shares due to a change in the equity ratio against affiliates to which the equity method
is applicable.

10.5

Items concerning stock acquisition rights

There is no relevant item.

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118

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

10.6

Items related to dividends

10.6.1Dividends paid
Dividends paid

Dividend per share(Millions of yen)

(Yen)

(Resolution)

Type of shares

June 16, 2021
Annual General Meetingof Shareholders

Common stock¥ 6,063

October 29, 2021
Board of Directors

Common stock

6,062

Record date

Effective date¥ 25

March 31, 2021

June 17, 2021

25

September 30, 2021

December 1, 2021

Notes:
1.	The dividends by a resolution at the Annual General Meeting of Shareholders on June 16, 2021 included 10 million yen of dividends for the shares in the
Company owned by the officer’s compensation BIP trust.
2.	The dividends by a resolution of the Board of Directors on October 29, 2021 included 9 million yen of dividends for the shares in the Company owned by theofficer’s compensation BIP trust.
10.6.2

Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
Dividends paid

(Resolution)

Type ofsharesJune 15, 2022
Annual General Meetingof Shareholders

Commonstock(Millions of yen)
¥ 6,062

Source ofdividends
Retainedearnings

Dividend per share
(Yen)
¥ 25

Record date

Effective date

March 31, 2022

June 16, 2022

Note: The total amount of dividends includes 9 million yen of dividends for the shares in the Company owned by the officer’s compensation BIP trust.

11. Consolidated Statements of Cash Flows 
11.1

Relationship between cash and cash equivalents at fiscal year-end and amounts shown on consolidated balance sheets
Millions of yen

Cash and deposits in the consolidated balance sheets

2021

2022

¥ 27,546¥ 31,331

Deposits with maturities over 3 months(2,323)(1,909)Cash and cash equivalents in the cash flow statements

25,222

29,422

11.2
Depreciation and amortization for the fiscal year under review include depreciation costs recorded as COVID-19-related losses under extraordinary loss.

12. Lease Transactions <As lessee><As lessor>

Future lease payments for noncancelable leases in connection with operating

Future lease receivables for noncancelable leases in connection withlease transactions

operating lease transactions
Millions of yen

119

2021

2022

Due within one year

¥ 7,027¥ 7,008

Due after one year

58,155

Total

65,183

Hankyu Hanshin Holdings Integrated Report 2022

Millions of yen
2021

2022

Due within one year

¥ 2,818¥ 3,939

59,896

Due after one year

20,15927,173

66,905

Total

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Financial Section andCorporate Data

Notes to the Consolidated Financial Statements

13. Financial Instruments 
13.1

Matters regarding financial instruments(market risk), which is limited by fixing interest rates through interest

13.1.1

Policy on financial instruments

rate swap transactions. In addition, liquidity risk—the risk that payment

It is the Group’s policy to limit the investment of its funds to short-term

will not be made by the due date—is limited by the timely preparation

deposits which are highly secure, and the Group raises funds mainlyof financing plans and proper fund management. Also, surplus funds ofthrough loans from financial institutions, bonds and commercial paper.

the Group companies are concentrated and used effectively through the

Derivative transactions are used to avoid risk, as discussed later, and it iscentralization of Group funds by using a cash management system. The

our policy to refrain from speculative transactions.

immediate raising of funds from financial institutions became possible
through the establishment of backup financing, such as commitment lines.

13.1.2

Details of the financial instruments used, the risk involved and theIn addition, the Company maintains a proper balance between direct

risk management systemfinancing and indirect financing and diversifies the raising of funds by using
multiple financial institutions, thus securing liquidity.

Trade receivables, namely note receivables and trade account receivables,
are exposed to the credit risk of customers. The Group limits its exposure

Regarding the use of derivative transactions, internal regulations

to this credit risk by controlling due dates and balances by customer andprescribe the division of duties and transaction limits. Forward exchange

by making periodical checks of the credit conditions of major customers

contracts are used to hedge exchange rate fluctuation risk involved in a

pursuant to the internal regulations of each company.

portion of the foreign currency-denominated assets and liabilities. The

Investment securities consist mainly of stocks and bonds and are

purpose of interest rate swap transactions is to hedge the interest rate

exposed to market price fluctuation risk. However, fair values and thefluctuation risk of certain loans. These derivative transactions involve credit

financial condition of the issuers are checked periodically, and the risk

risk because if the other party to a transaction defaults under the terms

management system is confirmed.

of contract or becomes bankrupt, then the benefit that would have been

Almost all trade payables, namely note payables and trade accountobtained in the future if the transaction had continued would not bepayables, have a payment date that falls within one year. Some assets andobtained. However, credit risk is limited by carrying out transactions only

liabilities denominated in foreign currencies are exposed to exchange ratewith financial institutions with high credit ratings.
More information regarding the means and objectives of hedging,fluctuation risk (market risk), which is limited through forward exchange

hedging policy and the method used to evaluate the effectiveness of hedges

contracts.
Short-term borrowings and commercial paper are used mainly to raise

related to hedge accounting for derivative transactions is described in Noteshort-term funds for working capital, and long-term debt and bonds are

2.4.7, “Significant hedge accounting methods” under Note 2.4, “Accounting

used mainly to raise the long-term funds necessary for capital investment

policies,” outlined in Note 2, “Basis of Preparation of Consolidated Financial

plans. Some floating-rate debt is exposed to interest rate fluctuation risk

Statements.”

13.2

Matters regarding fair values of financial instruments

Book values recorded in the consolidated balance sheets, fair values and differences between them are as shown below.
Millions of yen
2022

2021
Book value

Fair value

DifferenceBook value

Fair value¥ 46,857¥ 46,856

Difference¥ 63,954¥ 63,954(2) Short-term borrowings*2

106,263

106,263—

91,466

91,466—(3) Bonds*3

197,000

197,414414

237,000

232,907(4,093)(4) Long-term debt*2

718,358

735,100

16,741

703,747

725,827

22,080

58

58

—

38

38

—

Assets(1) Investment securities*1

¥

(0)

¥

(0)

Liabilities(5) Derivative transactions*4
Notes:

1.	“Cash and deposits,” “Trade receivables,” “Trade payables,” and “Commercial paper” are omitted mainly because they are settled in a short period of time andtheir fair value approximates their book value.
2.	(*1) Equity securities of non-consolidated subsidiaries and affiliated companies are not included in “(1) Investment securities,” nor are equity securities withoutmarket prices, etc., included in “(1) Investment securities.” The amounts recorded in the consolidated balance sheets for these financial instruments are as
follows:
Millions of yen
Classification
Non-listed equity securities, etc.
Investments in limited liability investment partnerships and similar investments

2021

2022

¥ 6,520¥ 6,109

5,399

4,366

3.	(*2) Current portion of long-term debt is included in (4) Long-term debt.
4.	(*3) Current portion of bonds is included.

5.	(*4) The net receivables/liabilities incurred as a result of derivative transactions are shown in net figures, net liabilities are shown in parenthesis.
6. Supplementary explanation regarding fair value of financial instruments

Since fluctuation factors are incorporated in the calculation of the fair values of financial instruments, the values may fluctuate if different assumptions are used.
As for the contract amounts, etc., of derivative transactions stated in “Derivatives,” the amount itself does not indicate the market risk involved in derivativetransactions.

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Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

7. Redemption and repayment schedule of monetary claims and investment securities with maturities after the consolidated closing dateFiscal year ended March 31, 2021
Millions of yen
Due after one
Due within one
year through five
year
years
¥

—

Due after five
years throughten years¥—

Due after ten
years

Cash and deposits¥ 27,546

Trade receivables

72,991

—

—

¥

—

70

160

—

300

100,608

160

—

300

—

Investment securities:
Available-for-sale securities with maturities(government bonds, etc.)
Total
Fiscal year ended March 31, 2022
Millions of yen
Due after one
Due within one
year through five
year
years
¥

—

Due after five
years throughten years¥—

Due after ten
years

Cash and deposits¥ 31,331

Trade receivables

112,568

—

—

¥

—
—

65

94

—

300

143,965

94

—

300

Investment securities:
Available-for-sale securities with maturities(government bonds, etc.)
Total

8. Amount of planned redemption and repayment of bonds and long-term debt after the consolidated closing dateFiscal year ended March 31, 2021
Millions of yen
Due after one
Due within one
year through five
year
years
Bonds
Long-term debt
Total

Due after five
years throughten years

Due after ten
years¥ 60,000¥ 10,000¥ 67,000¥ 60,000

44,971

297,864

278,625

96,89854,971

364,864

338,625

156,898

Fiscal year ended March 31, 2022
Millions of yen
Due after one
Due within one
year through five
year
years

Due after five
years throughten years

Due after ten
years¥ 75,000

Bonds¥ 7,000¥ 85,000¥ 70,000

Long-term debt

54,271

311,710

248,879

88,886

61,271

396,711

318,879

163,886

Total

13.3

Matters regarding breakdown by level of fair values of financial instruments

The fair values of financial instruments are classified into the following three levels depending on the observability and significance of input used in the fair value
measurement:
Level 1 fair value:	Of the observable input in the fair value measurement, fair value is measured based on the quoted price in an active market for the subject
asset or liability.
Level 2 fair value:	Of the observable input in the fair value measurement, fair value is measured using input other than that used for Level 1.
Level 3 fair value:	The fair value is measured using input that cannot be observed.
When multiple forms of input that have a significant effect on the fair value measurement are used and the input is within different levels of the fair value hierarchy,
the fair value is classified as the lowest level in the fair value measurement.

121

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Creating Real Value:
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Financial Section andCorporate Data

Notes to the Consolidated Financial Statements

13.3.1

Financial instruments reported on the consolidated balance sheets at fair value

Fiscal year ended March 31, 2022

Classification

Millions of yen
Fair value
Level 2
Level 3

Level 1

Total

AssetsInvestment securities
Other securities
Equity securities, other¥ 31,902¥ —¥ —¥ 31,902

159

—

—

159

—

38

—

38

Government bonds
Derivative transactions
Currency

Note: The fair values of investment trusts are not included in the above table. The amount of investment trusts reported on the consolidated balance sheets is
14,784 million yen.

13.3.2Financial instruments other than those reported on the consolidated balance sheets at fair value

Fiscal year ended March 31, 2022

Classification

Millions of yen
Fair value
Level 2
Level 3

Level 1

Total

AssetsInvestment securities
Held-to-maturity bonds
Government bonds

¥

9

¥

—

¥

—

¥

9

Liabilities
Short-term borrowings—

91,466—

91,466

Corporate bonds—

232,907—

232,907

Long-term debt—

725,827—

725,827

Note: Explanation of the valuation techniques and input used in the fair value measurement
Investment securities
Listed equity securities, bonds, etc., are valued using the quoted price. Because they are traded in active markets, their fair value is classified as Level 1 fair value.
Derivative transactions
Because the fair value of derivatives is determined based on the prices obtained from counterparty financial institutions, etc., their fair value is classified as Level 2
fair value. Derivatives via interest-rate swaps special provisions are treated together with the long-term debt that is the subject of the hedge, their fair value isincluded in the fair value of the relevant long-term debt.
Short-term borrowings
The fair value of short-term borrowings is determined based on the book value because they are settled in a short period of time and their fair value approximates
their book value, thereby being classified as Level 2 fair value.
Corporate bonds
The fair value of the bonds issued by the Company is measured based on the quoted price and classified as Level 2 fair value.
Long-term debt
For long-term debt, the fair value of debts with fixed interest rates is calculated by discounting the total amount of principal and interest at an interest rate thatwould be charged for similar new loans, and the fair value is classified as Level 2 fair value. Debts with floating rates reflect market interest rates in a short period oftime, and their fair value approximates their book value. Therefore, the fair value is determined based on the relevant book value and classified as Level 2 fair value.
The fair value of debt subject to exceptional treatment of interest rate swaps reflects the fair value of the relevant interest rate swaps.

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Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

14. Securities 
14.1

Available-for-sale securities
Millions of yen
2022

2021
Classification

Book value

Acquisition cost

DifferenceBook value

Acquisition cost

Difference¥ 61,918¥ 41,268¥ 20,649¥ 30,611¥ 19,375¥ 11,235

231

228

2

159

158

1

Subtotal

62,14941,497

20,652

30,77019,533

11,236Equity securities, etc.

1,795

1,886

(91)

16,076

18,293(2,217)(1) Equity securities, etc.

Securities with bookvalue exceedingacquisition cost(2) Bonds

Securities with bookvalue not exceedingacquisition cost

Subtotal

Total

1,795

1,886

(91)

16,076

18,293(2,217)

63,944

43,383

20,561

46,84737,827

9,019

Note: Equity securities, etc., without market prices (11,920 million yen for the previous consolidated fiscal year, 10,476 million yen for the current consolidated fiscal
year) are not included in the above table.

14.2

Available-for-sale securities soldFiscal year ended March 31, 2021
Information is omitted as the significance was negligible.
Fiscal year ended March 31, 2022
Millions of yen
Classification

Amount soldTotal amount ofgain on sales¥ 9,187

Equity securities

Total amount ofloss on sales¥ 3,702¥ 21

15. Derivatives 
15.1

Derivative transactions for which hedge accounting has not been applied

Currency
Fiscal year ended March 31, 2021
Millions of yen

ClassificationTransactions
other than market
transactions

Fair value

Valuation
gain/loss

¥ 169

¥ —

¥ 7

¥ 7

169

—

7

7

Type
Forward exchange contracts:
Buy contract
US dollar
Total

Fiscal year ended March 31, 2022
There is no relevant item.

123

Contract
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Notes to the Consolidated Financial Statements

15.2

Derivative transactions for which hedge accounting has been applied

15.2.1

Currency

Fiscal year ended March 31, 2021
Classification

Millions of yen
Main hedged
items

Type

Contract
amountPortion of contract
amount exceeding
one year

Fair value

Forward exchange contracts
Sell contract
Primary method

Trade receivables

US dollar¥

Buy contract

5

¥

—

¥

0

Trade payables

Japanese yen

1,129

—

(0)

745

—

52

22

—

(0)

178

—

Forward exchange contracts
Buy contract
US dollar

Trade payables(forecast transactions)Indian rupee
Forward exchange contracts
Sell contractDesignation of
forward exchange
contracts, etc.

Trade receivables

US dollar
Buy contract

Trade payables

US dollar

733—

Thai baht

192—

Hong Kong dollar

134

—

Euro

105

—

Pound sterling

35—

Singapore dollar

14—

Swiss franc

1

—

3,298

—

Total
Fiscal year ended March 31, 2022

Classification(Note)

51

Millions of yen
Main hedged
items

Type

Contract
amountPortion of contract
amount exceeding
one year

Fair value

Forward exchange contracts
Sell contract

Trade receivables

US dollar
Primary method

Buy contract

¥

168

¥

—

¥

1

Trade payables

Japanese yen

1,289

—

US dollar

46

—

(18)
(1)

Singapore dollar

1

—

(0)

905

—

58

147

—

Forward exchange contracts
Buy contract
US dollar

Trade payables(forecast transactions)

Forward exchange contracts
Sell contract

Trade receivables

US dollarDesignation of
forward exchange
contracts, etc.

Buy contract

Trade payables

US dollar

1,172

—

Thai baht

244

—

Euro

213

—

Hong Kong dollar

109—

Pound sterling

36—

Singapore dollar

10—

Swiss franc

7

—

4,352

—

Total

(Note)

38

Note: Items subject to the allocation method for forward exchange contracts (listed as “Designation of forward exchange contracts, etc.”) are accounted forsynthetically with trade receivables and trade payables that are subject to hedging. The fair value of the relevant trade receivables and trade payables,
including those of the above items, approximates their book value because the trade receivables and trade payables are settled in a short period of time. For
this reason, the fair value of the above items is omitted.

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124

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

15.2.2

Interest rates

Fiscal year ended March 31, 2021
Millions of yen
ClassificationExceptional
accounting ofinterest rate
swaps

Main hedged
items

Type
Interest rate swap contracts:
Pay fixed rate/
Receive floating rateLong-term debt

Contract
amountPortion of contract
amount exceeding
one year

Fair value¥ 144,000¥ 124,700¥ (7,116)

144,000

124,700(7,116)

Contract
amountPortion of contract
amount exceeding
one year

Fair value¥ 124,700¥ 108,200¥ (4,932)

124,700

108,200(4,932)

Total
Fiscal year ended March 31, 2022

ClassificationExceptional
accounting ofinterest rateswaps

Millions of yen
Main hedged
items

Type
Interest rate swap contracts:
Pay fixed rate/
Receive floating rateLong-term debt

Total

16. Retirement Benefits 
16.1

Overview of retirement benefit plans

The Company and some consolidated subsidiaries provide defined benefit plans (defined benefit pension plans and lump-sum payment plans) or defined
contribution plans. Hankyu Corporation has set up a retirement benefit trust.
In addition, some consolidated subsidiaries subscribe to employee pension fund plans in multi-employer plans. For them, the Company has used the sameaccounting treatment as it used for defined contribution plans when the amount of plan assets corresponding to the contributions by the Company cannot be
rationally calculated.

16.2

Defined benefit plan

16.2.1

Table of movement in retirement benefit obligations

16.2.2

Table of movement in plan assets

Millions of yen

Millions of yen

2021

2022

¥ 132,022¥ 132,057

Service cost

8,061

8,109

Interest cost

254

261

Balance at beginning of the year

Actuarial loss (gain)
Retirement benefits paid
Other
Balance at end of the year

679

(412)

(9,134)(9,625)173

232

132,057

130,623

Note: Amounts in the table above include the retirement benefit obligationsof consolidated subsidiaries using simplified methods.

125

Hankyu Hanshin Holdings Integrated Report 2022

Balance at beginning of the year

2021

2022

¥ 82,638¥ 89,352

Expected return on plan assets

1,332

1,294

Actuarial loss (gain)

6,270(2,176)Contribution paid by the employer

4,080

3,005

Retirement benefits paid

(4,968)(5,211)

Other
Balance at end of the year—69

89,352

86,334

Note: Amounts in the table above include the plan assets of consolidated
subsidiaries using simplified methods.

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16.2.3

Table of reconciliation between the balance of retirement benefit

16.2.6

obligations and of plan assets, and the liabilities for retirement

A breakdown of items related to the cumulative adjustments for retirement

Cumulative adjustments for retirement benefit plans

benefit and assets for retirement benefit recorded in thebenefit plans (prior to the deduction of the tax effect) is as follows:

consolidated balance sheets, as of the end of fiscal year
Millions of yen
Millions of yen
Funded retirement benefit obligations

2021

2022

¥ (763)¥ (623)

2021

2022

¥ 69,796¥ 68,282Unrecognized actuarial differences(5,938)(3,395)(89,352)(86,334)

Total(6,702)(4,019)Note: The above relates to consolidated subsidiaries. In addition to thePlan assets(19,556)(18,051)Unfunded retirement benefit obligations

62,26062,341Total net defined benefit liability and asset

42,70444,289Net defined benefit liability

62,89062,795Net defined benefit asset(20,186)(18,505)Total net defined benefit liability and asset

42,70444,289Note: Amounts in the table above include the retirement benefit obligations
and plan assets of consolidated subsidiaries using simplified methods.

Unrecognized past service cost

above items, the remeasurements of defined benefit plans include
unrecognized items (the amount corresponding to equity) of equitymethod affiliates.

16.2.7I.

Items relating to plan assets

Breakdown of major plan assets
Ratio of the major types of assets to total assets are as follows:

16.2.4

2021

2022

Bonds

35%

36%

Equity securities

36

34

Cash and deposits

22General accounts of life insurance

25

26

Breakdown of retirement benefit expenses
Millions of yen

Service cost

2021

2022

¥ 8,061¥ 8,109

254

261

Other

2

2

(1,332)(1,294)

Total

100

100

Amortization of actuarial differences

263

(778)

Amortization of past service cost

(139)

(139)

72

86

7,179

6,245

Interest costExpected return on plan assets

Other
Retirement benefit expenses
Notes:

1. Amounts in the table above include the retirement benefit expenses of
consolidated subsidiaries using simplified methods.
2. In addition to the retirement benefit expenses shown above, extra
retirement payments have been paid: 161 million yen in the fiscal year
ended March 31, 2021, and 51 million yen in the fiscal year ended March

Note: The retirement benefits trust established for the Company’s pension
plan constituted 11% of total plan assets in the previous fiscal year and
8% of total plan assets in the current fiscal year.

II.

Method of determining the long-term expected rate of return on plan
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.

31, 2022, were recorded as extraordinary loss.
16.2.8Items relating to actuarial assumptions

Major actuarial assumptions

16.2.5	Remeasurements of defined benefit plans
Breakdown of items related to remeasurements of defined benefit plans (prior
to the deduction of the tax effect) is as follows:
Millions of yen
2021

2022

¥ (139)¥ (139)Actuarial differences

5,854(2,542)

Total

5,714

(2,682)

Past service cost

2021

2022

Discount rate

Mainly 0.0%

Mainly 0.0%

Long-term expected rate of return onplan assets

Mainly 2.0%

Mainly 2.0%

Expected rate of salary increase

Mainly 2.1%

Mainly 2.1%

16.3

Defined contribution plan

The amount of the required contribution for the consolidated subsidiaries’
defined contribution plans (including employee pension fund plans in
multiemployer plans to which the same accounting methods are applied as
those for defined contribution plans) was 41 million yen in the fiscal year
ended March 31, 2021 and 39 million yen in the fiscal year ended March 31,
2022.

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126

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

17. Deferred Tax 
17.1

Significant components of the Company’s deferred tax assets and liabilities
Millions of yen
2021

2022

Deferred tax assets:
Gain on donations by related companies for tax purposes¥ 55,122¥ 55,122

Tax loss carryforwards (Note 1)

33,08432,468Net defined benefit liability

13,952

14,493

Loss on revaluation of real estate for sale

9,257

8,823

Loss on impairment of fixed assets

9,999

7,643

Loss on adjustment of transferred profit and loss

5,503

6,589

Unrealized profit from assets

5,106

5,568

Allowance for loss on withdrawal of property and equipment

2,471

2,345

Provision for bonuses

1,580

1,635

416

1,074

Enterprise taxes and business office taxes
Other
Subtotal of deferred tax assets

11,275

10,495

147,769

146,259

Valuation allowance from tax loss carryforwards (Note 1)(6,214)(8,901)

Valuation allowance from the total of future deductible temporary
differences(78,012)(77,826)

Subtotal of valuation allowance(84,227)(86,727)

Less amounts offset against deferred tax liabilities(56,749)(52,312)

6,792

7,218

Total deferred tax assets
Deferred tax liabilities:
Gain on reversal of difference from land revaluation (Note 2)(131,392)(131,388)Revaluation of assets on consolidation(77,963)(77,630)

Net unrealized holding gains on securities(16,537)(12,520)

Reserve for reduction of noncurrent assets(3,398)(3,339)Gain on valuation of properties of business reorganization(1,722)(1,702)Other(2,575)(2,248)(233,589)(228,829)

Subtotal of deferred tax liabilities

56,74952,312Total deferred tax liabilities

Less amounts offset against deferred tax assets(176,839)(176,516)

Net deferred tax liabilities(170,046)(169,297)

Notes:
1. The expiration of tax loss carryforwards, the related valuation allowance and the resulting net deferred tax assets
Fiscal year ended March 31, 2021
Millions of yen

Tax loss carryforwards*

1

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¥ 33,084¥ 691¥ 2,954

¥ 123

¥ 63

¥ 332

¥ 28,918

Valuation allowance

(686)

(582)

(114)

(10)

(189)

(4,632)(6,214)

Deferred tax assets

5

2,372

9

52

143

24,285

26,869*²*1 Tax loss carryforwards were calculated based on the statutory tax rate.
 f the total tax loss carryforwards of 33,084 million yen (multiplied by the statutory effective tax rate), 26,869 million yen were deferred tax assets. The deferred*2 O
tax assets were determined to be recoverable from the taxable income expected in the future as set forth in Note 3, “Significant Accounting Estimates.”

Fiscal year ended March 31, 2022
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¥ 2,201

¥ 123

¥ 41

¥ 190

¥ 23

¥ 29,888¥ 32,468

Valuation allowance

(991)

(115)

(7)

(189)

(15)

(7,583)(8,901)

Deferred tax assets

1,210

8

34

0

8

22,30423,566*²

Tax loss carryforwards*

1*1 Tax loss carryforwards were calculated based on the statutory tax rate.
 f the total tax loss carryforwards of 32,468 million yen (multiplied by the statutory effective tax rate), 23,566 million yen were deferred tax assets. The deferred*2 O
tax assets were determined to be recoverable from the taxable income expected in the future as set forth in Note 3, “Significant Accounting Estimates.”

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.

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Notes to the Consolidated Financial Statements

17.2	Reconciliation of significant differences between the statutory tax rate and the effective tax rate reflected in the accompanying consolidated
statements of income
2021

2022

—%

30.6%

Elimination of dividends received fromconsolidated subsidiary companies, etc.

—

12.8

Valuation allowance—

8.1

Amortization of goodwill—

1.9

Per capita portion of inhabitants tax—

1.0

Nondeductible expenses—

0.7

Nontaxable income—(13.0)

—

(5.7)

—

(0.1)

Statutory tax rate
(Adjustment)

Profit or loss from investments with equity
method affiliates
Difference in tax rates from those of Parent
Company
Other
Effective tax rate

—

(1.9)

—

34.4

Note: The reconciliation for the consolidated fiscal year ended March 31, 2021 is omitted as a loss before income taxes was recorded.

18. Asset Retirement Obligations 
Omitted as the significance was negligible.

19. Rental Property 
Some consolidated subsidiaries own rental property, such as office buildings

Notes:and commercial facilities for lease in Kita Ward, Osaka and other areas.

1. Book value is acquisition cost less accumulated depreciation.

Rental profits and losses related to the rental property in the fiscal year

2. As for the increases/decreases during the fiscal year ended March 31,

ended March 31, 2021 were 26,215 million yen (major rental revenues

2021, the main increase was the completion of buildings under construction

are recorded in revenues from operations and major rental expenses areat 22,730 million yen, and the main decrease was depreciation of 12,833

recorded in costs of revenues from operations). Rental profits and losses

million yen. As for the increases/decreases during the fiscal year ended

related to the rental property in the fiscal year ended March 31, 2022 were

March 31, 2022, the main increase was the completion of buildings

27,072 million yen (major rental revenues are recorded in revenues fromunder construction at 184,704 million yen, and the main decrease wasoperations and major rental expenses are recorded in costs of revenues
from operations).

depreciation of 15,602 million yen.
3. Fair value as of the end of the fiscal year is the appraisal value according

Book value recorded in the consolidated balance sheets, the increase/to outside real estate appraisers based on Japanese Real Estate Appraisal

decrease during the fiscal year and the market value for rental property are asStandards in the case of key properties and the fair value based on indicators

follows:such as the assessed value of noncurrent assets and the road tax rating forMillions of yen
2021

2022

¥ 645,922¥ 653,108

Increase/decrease (Note 2)

7,185

196,011

Balance at end of the year

653,108

849,119

917,853

1,379,880

Book value (Note 1):Balance at beginningof the year

Fair value at endof the year (Note 3)other properties.
4. P roperties under development were not included in the above table because
it was difficult to determine the market value. Furthermore, properties underdevelopment recorded in the consolidated balance sheets for the fiscal year
ended March 31, 2021 and 2022 were 171,670 million yen and 32,777
million yen, respectively.

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Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

20. Revenue Recognition 
20.1

Information on disaggregated revenue from contracts with customers

Revenue from contracts with customers is disaggregated into segments based on the contract with the customer. The Group’s segments are made up of businesssegments and are components of an entity for which separate financial statements are available and evaluated regularly by the Board of Directors in determining theallocation of management resources and in assessing performance.
The relationship between disaggregated revenue and operating revenue by segment is as follows:
Millions of yen
Urban Transportation¥ 161,623

Railway operations

118,539

Automobile

34,098Retailing

10,921

Urban Transportation - Other businesses
Adjustment

8,696(10,633)

Real Estate

230,526

Leasing

112,468

Real estate sales and other business

135,484

Adjustment(17,425)

Entertainment

62,864Sports29,432

Stage

33,364

Adjustment

67

Information and Communication Technology

59,181

Travel

60,419International transportation

143,296Hotel

25,554

Other businesses

51,666

Adjustment(48,914)
Total

746,217

Note: In addition to “Revenue from contracts with customers,” the above figures include “Revenue from other sources” at 77,694 million yen. “Revenue from othersources” mainly consists of rental income in the real estate leasing business.

20.2

Basic information for understanding revenue from contracts with customers

Basic information for understanding revenue from contracts with customers is as stated in Note 2.4.5, “Standards for recognition of significant revenues andexpenses” under Note 2.4, “Accounting policies,” outlined in Note 2, “Basis of Preparation of Consolidated Financial Statements.”

20.3

Information on the relationship between fulfillment of performance obligation based on contracts with customers and cash flows arisingfrom such contracts, and the amount and timing of revenue expected to be generated from contracts with customers existing at the endof the current consolidated fiscal year and to be recognized in the next consolidated fiscal year and beyond

20.3.1

Balances of contract assets and contract liabilities
Millions of yen

Receivables from contracts with customers (balance at beginning of year)¥ 65,826

Receivables from contracts with customers (balance at end of year)

104,967

Contract assets (balance at beginning of year)

6,459

Contract assets (balance at end of year)

6,586

Contract liabilities (balance at beginning of year)

33,276

Contract liabilities (balance at end of year)

41,573Contract assets are mainly unclaimed rights to consideration recognized based in accordance to the degree of progress made in fulfilling performance obligations related
to construction contracts in the Construction Industry, and are transferred to receivables from contracts with customers at the time of acceptance inspection by customers.
Contract liabilities are mainly advances received from customers in Urban Transportation, Travel, and other businesses, and are reversed upon recognition of revenue.
The balance of contract liabilities as of the beginning of the current fiscal year is generally recognized as revenue for the current fiscal year, and the amount carried forward
to the next fiscal year onward is immaterial.
20.3.2

Trading prices allocated to the remaining performance obligations

Because the Group does not have significant transactions in which the duration period is initially expected to exceed one year, disclosure of remaining performanceobligations is omitted.

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21. Segment Information 
21.1

Segment information

21.1.1

Summary of reportable segments

The Group’s reportable segments, which make financial information for units of the Group available, are regularly reviewed by the Board of Directors to determine theallocation of management resources and evaluate business results.
The Group, centering on six core companies of Hankyu Corporation, Hanshin Electric Railway Co., Ltd., Hankyu Hanshin Properties Corp., Hankyu Travel International
Co., Ltd., Hankyu Hanshin Express Co., Ltd. and Hankyu Hanshin Hotels Co., Ltd., under the leadership of the Company in charge of management of the Group, isconducting business centered around the seven business areas of urban transportation, real estate, entertainment, information and communication technology, travel,international transportation and hotel.
The nature of the business in each reportable segment is as follows:
Urban Transportation: Railway operations, automobile and retailing businesses
Real Estate: Rental real estate, real estate sales and other businesses
Entertainment: Sports-related businesses and stage events
Information and Communication Technology: Information and communication technology businessTravel: Travel services
International Transportation: International cargo services
Hotel: Hotel ownership and management

21.1.2

Method used to calculate revenues from operations, income (or loss), assets and other items for each reportable segment

The accounting treatment for each reportable business segment is based on the methods described in Note 2, “Basis of Preparation of Consolidated Financial Statements,”
including Internal transactions (lease transactions for lands and buildings, etc.) that are calculated through management accounting at companies with businesses covering
multiple segments.
Income (or loss) for each reportable segment refers to a figure based on operating income (or loss).
Intersegment revenues from operations and transfers are mainly based on similar to that for regular transactions.
As stated in Note 4. “Changes in accounting policies,” we have applied the Revenue Recognition Accounting Standard and other standards starting from theconsolidated financial statements for the current fiscal year, and have changed the accounting method for revenue recognition. In line with this change, we have alsochanged the profit and loss calculation method for each business segment in the same way.
The major impact of these changes concerns some of the transaction revenue that had previously been recognized at the net amount with the Group deemed to be
acting as an agent. Revenue from such transactions is now recognized at the gross amount with the Group deemed to be acting as a principal. Consequently, mainly in thetravel business, revenue from operations for the current fiscal year increased by 45,924 million yen compared to that calculated using the conventional accounting method.

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Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

21.1.3

Information regarding totals for revenues from operations, income (loss), assets and other items by reportable segment

Fiscal year ended March 31, 2021
Millions of yen
Reportable segments
Urban
Transportation

Real
EstateInformation andEntertainment Communication
Technology

TravelInternational
Transportation

Hotel

Other
(Note 1)

Adjustment(Note 2)

Amounts
appearing in
the consolidated
financial statements(Note 3)

Revenues from operations:¥ 152,355¥ 173,240¥ 41,442¥ 49,838¥ 11,954¥ 85,468¥ 18,463¥ 35,734

II. Intersegment

4,570

15,119

749

8,245

6

84

682

14,106(43,563)—

Total

156,926

188,360

42,192

58,083

11,96085,552

19,14549,840(43,160)

568,900

I. Customers

Segment income (loss)
Segment assets¥

402¥ 568,900(5,108)28,923(2,258)5,556(7,397)

2,308(17,927)

1,881(3,911)

2,066

814,650

1,298,114

106,31058,74329,626

52,616

91,23039,985

129,750

2,621,028

27,052

17,302

2,942

4,246

886

1,288

2,369

456

(812)

55,73329,51568,762

1,716

4,544

1,352

687

1,922

329

(358)

108,472

Other items:
Depreciation andamortizationIncrease in property andequipment and intangible assets

Notes：
1. The “Other” segment refers to a business segment not included in reportable segments and includes the construction business, etc.
2. T he main item in the adjusted amount of the segment income or loss for the fiscal year was the amortization of goodwill of (2,238) million yen (amortization of
goodwill having originated mainly from the management integration with Hanshin Electric Railway Co., Ltd. in fiscal 2007).
In addition to the balance of unamortized goodwill of 11,749 million yen (goodwill having originated mainly from the management integration with Hanshin
Electric Railway Co., Ltd. in fiscal 2007), the adjusted amount for segment assets includes surplus working capital (cash and deposits), long-term investment funds(investment securities), unallocated assets such as land and intersegment eliminations at the Company, Hankyu Corporation and Hanshin Electric Railway Co., Ltd.
3. Segment profit and loss is adjusted with operating income in the consolidated statements of income.
Fiscal year ended March 31, 2022
Millions of yen
Reportable segments
Urban
Transportation

Real
EstateInformation andEntertainment Communication
Technology

TravelInternational
Transportation

Hotel

Other
(Note 1)

Adjustment(Note 2)

Amounts
appearing in
the consolidated
financial statements(Note 3)

Revenues from operations:¥ 157,128¥ 213,161¥ 61,485¥ 48,638¥ 60,102¥ 143,229¥ 24,909¥ 37,153

II. Intersegment

4,494

17,365

1,378

10,542

317

67

644

14,512(49,323)—

Total

161,623

230,526

62,864

59,18160,419143,296

25,554

51,666(48,914)746,217

I. Customers

Segment income (loss)
Segment assets¥

408¥ 746,217

5,629

32,952

9,263

5,867

(5,748)

8,019(13,176)

2,385(5,979)39,212

833,681

1,368,083

112,522

68,33846,154

69,18892,43242,00490,4342,722,841

27,222

19,600

3,487

4,775

912

1,592

2,216

396

(1,095)

59,10730,27476,822

5,102

5,104

738

2,474

698

364

(1,276)

120,302

Other items:
Depreciation andamortizationIncrease in property andequipment and intangible assets

Notes:
1. The “Other” segment refers to a business segment not included in reportable segments and includes the construction business, etc.
2. T he main item in the adjusted amount of the segment income or loss for the fiscal year was the amortization of goodwill of (2,238) million yen (amortization of
goodwill having originated mainly from the management integration with Hanshin Electric Railway Co., Ltd. in fiscal 2007).
In addition to the balance of unamortized goodwill of 9,511 million yen (goodwill having originated mainly from the management integration with Hanshin
Electric Railway Co., Ltd. in fiscal 2007), the adjusted amount for segment assets includes surplus working capital (cash and deposits), long-term investment funds(investment securities), unallocated assets such as land and intersegment eliminations at the Company, Hankyu Corporation and Hanshin Electric Railway Co., Ltd.
3. Segment profit and loss is adjusted with operating income in the consolidated statements of income.

21.2

Related information

Fiscal years ended March 31, 2021 and 2022
21.2.1

Information by product and service

Information about product and service categories is the same as that described in Note 21.1.3, “Information regarding totals for revenues from operations, income(loss), assets and other items by reportable segment.”
21.2.2
I.

Information by region

Revenues from operations

Since over 90% of revenues from operations in the consolidated statements of income are revenues from external customers in Japan, a breakdown by region isomitted.
II.

Property and equipment

Since over 90% of the total value of property and equipment in the consolidated balance sheets relates to property and equipment in Japan, a breakdown by
region is omitted.

131

Hankyu Hanshin Holdings Integrated Report 2022

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Financial Section andCorporate Data

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

21.2.3

Information about important customers

No single external customer accounts for more than 10% of the revenues from operations reported in the consolidated statements of income.

21.3

Information regarding impairment loss on noncurrent assets for each reportable segment

Fiscal year ended March 31, 2021
In the “Hotel” segment, an impairment loss of 9,676 million yen was recorded as a structural reform-related loss under extraordinary loss.

Fiscal year ended March 31, 2022
Omitted as the significance was negligible.

21.4

Information regarding amortization of goodwill and the balance of unamortized goodwill by reportable segment

Information is omitted as the significance was negligible.

21.5

Information regarding gains from negative goodwill by reportable segment

Information is omitted as the significance was negligible.

22. Related-party Transactions 
22.1

Related-party transactions

22.1.1

Transactions between the company submitting the consolidated financial statements and related parties

No items
22.1.2

Transactions between consolidated subsidiaries of the company submitting the consolidated financial statements and related parties

I.

Nonconsolidated subsidiary or related company of the company that submitted the financial statements

Fiscal year ended March 31, 2021
Type
Subsidiaryof Related
Company

Name ofCompany, etc.

Address

Hankyu Hanshin
Kita-ku, Osaka
Department
City
Stores, Inc.

Amountof capital(Millions of yen)

Business¥ 200

Department
store businessAmountof capital(Millions of yen)

Business¥ 200

Department
store business

Voting Relationship withinterest
related party

Details oftransaction

Transaction
amounts(Millions of yen)

Item

Balance as ofMarch 31, 2021
(Millions of yen)

Lease of realestate,Directors holding
concurrent posts

Acceptanceofdeposits—

Deposit¥27,098

Voting Relationship withinterest
related party

Details oftransaction

Transaction
amounts(Millions of yen)

Item

Balance as ofMarch 31, 2022
(Millions of yen)

Lease of realestate,Directors holding
concurrent posts

Acceptanceofdeposits—

Deposit¥30,598

None

Fiscal year ended March 31, 2022
Type
Subsidiaryof Related
Company

Name ofCompany, etc.

Address

Hankyu Hanshin
Kita-ku, Osaka
Department
City
Stores, Inc.

None

Note: Terms and conditions of transactions and policies for determining terms and conditions of transactions
Terms and conditions for deposits are determined in the same way as general transactions.

Hankyu Hanshin Holdings Integrated Report 2022

132

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

II.

Directors and principal shareholders (only individual shareholders) of the company submitting the consolidated financial statements

Fiscal year ended March 31, 2021
Type

Name ofrelated party

Address

Amountof capital(Millions of yen)

Business

Votinginterest

Relationship withrelated party

Details oftransaction

Transaction
amounts(Millions of yen)

Auditorof Major
Subsidiary

Haruo
Sakaguchi—¥ —Auditorof Hankyu
Corporation

Directly
0.0%

Lease of realestateLease of realestate¥ 53

Deposit——

Close relativeof Auditor of
Hanshin Electric
Railway Co., Ltd.

None

Sales ofcondominiums

Sales ofcondominiums

28

—

Item

Close relative
Close relativeof Majorof Toshiro
Subsidiary’s
Kuroki
AuditorBalance as ofMarch 31, 2021
(Millions of yen)

Item

¥ 40

—

Fiscal year ended March 31, 2022
Type

Name ofrelated party

Address

Amountof capital(Millions of yen)

Business

Votinginterest

Relationship withrelated party

Details oftransaction

Transaction
amounts(Millions of yen)

Auditorof Major
Subsidiary

Haruo
Sakaguchi—¥ —Auditorof Hankyu
Corporation

Directly
0.0%

Lease of realestateLease of realestate¥ 53

Deposit——

Close relativeof Auditor of
Hanshin Electric
Railway Co., Ltd.

None

Sales ofcondominiums

Sales ofcondominiums

49—

Close relative
Close relativeof Majorof Toshiro
Subsidiary’s
Kuroki
AuditorBalance as ofMarch 31, 2022
(Millions of yen)
¥ 40—

Note: T
 erms and conditions of transactions and policies for determining terms and conditions of transactions
Terms and conditions for leases are determined by referencing to similar transaction cases in the neighboring area.
Terms and conditions for sales of condominiums are rationally determined after negotiations, taking into consideration the actual market value. Mr. Toshiro
Kuroki retired from the position of Audit & Supervisory Board Member of Hanshin Electric Railway Co., Ltd. on September 28, 2021, and the above information
pertains to his term of office.

22.2

Notes about parent company and major affiliated companies

No items

23. Per Share Information 
Net assets per share and the calculation basis, net income or net loss per share and the basis for their respective calculations are as shown below.
(1) Net assets per share (Yen)

2021

2022

¥ 3,598.83¥ 3,612.17(Basis for the calculation)
Total net assets (Millions of yen)

¥ 909,985¥ 915,363Amount to be deducted from total net assets (Millions of yen)¥¥

(Of the amount, non-controlling interests) (Millions of yen)

¥ [42,834]¥ [45,014]Net assets at the end of the fiscal year related to common shares (Millions of yen)

42,83445,014¥ 867,151¥ 870,348

Common shares issued (Thousands of shares)

254,281254,281

Treasury stock shares (Thousands of shares)

12,166

12,170Common shares held by consolidated subsidiaries and equity-method affiliates (Thousands of shares)

1,161

1,161

240,953

240,949

Common shares used to calculate net assets per share (Thousands of shares)(2) Net income (loss) per share (Yen)¥ (151.72)

¥

88.89

¥ (36,702)¥

21,418¥21,418(Basis for the calculation)
Net income (loss) attributable to owners of the parent (Millions of yen)Amount not belonging to common stockholders (Millions of yen)
Net income (loss) attributable to owners of the parent related to common share (Millions of yen)
Average number of common shares during term (Thousands of shares)(3) Diluted net income per share (Yen)¥ —¥ (36,702)¥ —241,903¥ —240,951¥

88.83(Basis for calculation)
Adjustment of net income attributable to owners of the parent (Millions of yen)¥ —¥ (14)(Of this, investment gain on equity method) (Millions of yen)

¥ [—]¥ [(14)]

Increase in number of common shares (Thousands of shares)
Outline of dilutive shares not included in the calculation of diluted net income per share because they do not havedilutive effect133

Hankyu Hanshin Holdings Integrated Report 2022

—

—

—

—

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Financial Section andCorporate Data

Creating Real Value:
The Foundations

Notes to the Consolidated Financial Statements

Notes:
1. In calculating net assets per share, the number of shares in the Company owned by the officer’s compensation BIP trust is included in that of treasury stock shares
to be excluded from the total number of outstanding shares at the end of the fiscal year. Furthermore, in calculating the net income (loss) per share for the current
fiscal year, the number of shares in the Company owned by the officer’s compensation BIP trust is included in that of treasury stock shares to be excluded in
calculating the average number of the shares during the current fiscal year. The number of such treasury stock shares deducted in calculating net assets per
share as of March 31, 2021 was 408,268, and, as of March 31, 2022 was 399,468. The average number of treasury stock shares deducted in calculating net
income (loss) per share for the fiscal year ended March 31, 2021 was 371,271, and, for the fiscal year ended March 31, 2022 was 402,583.
2. F
 or the consolidated fiscal year ended March 31, 2021, diluted net income per share is omitted because a net loss per share was recorded despite the existenceof dilutive shares.

24. Subsequent Events 
24.1
Not applicable.

25. Consolidated Supplementary Statements 
25.1

Corporate bond statements
Millions of yen
Company

Name

Issue date

Balance asof April 1,
2021

Hankyu Hanshin Holdings, Inc.

Series 41 unsecured corporate bonds

Sep 22, 2010

¥ 7,000

Hankyu Hanshin Holdings, Inc.

Series 46 unsecured corporate bonds

Oct 25, 2013

Hankyu Hanshin Holdings, Inc.

Series 47 unsecured corporate bonds

Jul 18, 2014

Hankyu Hanshin Holdings, Inc.

Series 48 unsecured corporate bonds

Dec 15, 2016

Balance asof March 31,
2022

Interest rate

Security

Redemption
date

7,000
(7,000)1.720％None

Sep 22, 2022

10,00010,000

0.819

None

Oct 25, 2023

10,00010,000

1.202

None

Jul 18, 2029

10,000

—

0.120

None

Dec 15, 2021¥

Hankyu Hanshin Holdings, Inc.

Series 49 unsecured corporate bonds

Dec 15, 2016

10,00010,000

0.817

None

Dec 15, 2036

Hankyu Hanshin Holdings, Inc.

Series 50 unsecured corporate bonds

Sep 13, 2018

10,00010,000

0.345

None

Sep 13, 2028

Hankyu Hanshin Holdings, Inc.

Series 51 unsecured corporate bonds

Sep 13, 2018

10,00010,000

0.789

None

Sep 13, 2038

Hankyu Hanshin Holdings, Inc.

Series 52 unsecured corporate bonds

Nov 21, 201910,00010,000

0.215

None

Nov 21, 2029

Hankyu Hanshin Holdings, Inc.

Series 53 unsecured corporate bonds

Nov 21, 201910,00010,000

0.878

None

Nov 19, 2049

Hankyu Hanshin Holdings, Inc.

Series 54 unsecured corporate bonds

Feb 27, 2020

10,00010,000

0.486

None

Feb 27, 2040

Hankyu Hanshin Holdings, Inc.

Series 55 unsecured corporate bonds

Jul 17, 2020

20,00020,000

0.001

None

Jul 14, 2023

Hankyu Hanshin Holdings, Inc.

Series 56 unsecured corporate bonds

Jul 17, 2020

10,00010,000

0.120

None

Jul 17, 2025

Hankyu Hanshin Holdings, Inc.

Series 57 unsecured corporate bonds

Jul 17, 2020

20,00020,000

0.280

None

Jul 17, 2030

Hankyu Hanshin Holdings, Inc.

Series 58 unsecured corporate bonds

Feb 26, 2021

20,00020,000

0.090

None

Feb 26, 2026

Hankyu Hanshin Holdings, Inc.

Series 59 unsecured corporate bonds

Feb 26, 2021

10,00010,000

0.270

None

Feb 26, 2031

Hankyu Hanshin Holdings, Inc.

Series 60 unsecured corporate bonds

Feb 26, 2021

20,00020,000

0.680

None

Feb 26, 2041

Hankyu Hanshin Holdings, Inc.

Series 61 unsecured corporate bonds

Sep 9, 2021—

15,000

0.001

None

Sep 9, 2024

Hankyu Hanshin Holdings, Inc.

Series 62 unsecured corporate bonds

Sep 9, 2021—

10,000

0.240

None

Sep 9, 2031

Hankyu Hanshin Holdings, Inc.

Series 63 unsecured corporate bonds

Sep 9, 2021—

15,000

0.580

None

Sep 9, 2041

Hankyu Hanshin Holdings, Inc.

Series 64 unsecured corporate bonds

Dec 8, 2021—

10,000

0.100

None

Dec 8, 2026

Total

—

—

197,000

237,000(7,000)———Notes:
1. The figures in parentheses for the balances as of March 31, 2022 are the amounts payable within one year of the total outstanding and are listed as current
liabilities in the consolidated balance sheets.
2. The amounts of bonds scheduled to be redeemed within five years subsequent to March 31, 2022 are as follows.
Millions of yen
Due within one year

¥ 7,000

Due after one year through two years

30,000Due after two years through three years

15,000Due after three years through four years

30,000Due after four years through five years

10,000Hankyu Hanshin Holdings Integrated Report 2022

134

Financial Section and Corporate Data

Notes to the Consolidated Financial Statements

25.2

Statements of loans payable
Millions of yen
Item

Short-term borrowings
Current portion of long-term debt
Current portion of lease obligations
Long-term debt (excluding current portion)
Lease obligations (excluding current portion)
Other interest-bearing debt
Commercial paper (to be repaid within one year)
Total
Notes:
1. The balances refer to those after the elimination of transactions between
companies in the consolidated group.
2. “Average interest rate” of loans payable refers to the weighted averageinterest rate for outstanding loans as of the end of the fiscal year ended
March 31, 2022.
3. For lease obligations, “average interest rate” is not shown because theCompany uses mainly 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. The repayment schedule for long-term debt and lease obligations (excluding
those scheduled to be repaid within one year) within five years subsequent
to March 31, 2022 is as follows.

25.3

Schedule of asset retirement obligations

The schedule is omitted as the significance was negligible.

135

Hankyu Hanshin Holdings Integrated Report 2022

Balance as ofApril 1, 2021
¥ 106,263
44,971
3,206
673,387
8,219

Balance as ofMarch 31, 2022
¥ 91,466
54,271
3,834
649,476
9,916

Average interest
rate
0.322%
0.824
—
0.775
—

Repayment deadline———
2023–2042
2023–2032

30,00050,000(0.029)—866,048858,964——

Long-term debt

Millions of yen

Due after one year through two years¥ 91,114

Due after two years through three years

83,272

Due after three years through four years

71,086

Due after four years through five years

66,237

Lease obligations

Millions of yen

Due after one year through two years¥ 3,424

Due after two years through three years

2,535

Due after three years through four years

1,428

Due after four years through five years

586

Profile

Creating Real Value:
Our Story

Creating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

OthersQuarterly financial information in fiscal year ended March 31, 2022
1st Quarter

2nd Quarter

3rd Quarter

4th Quarter¥ 151,977¥ 310,835¥ 517,162¥ 746,217

Income before income taxes for quarter of the fiscal year (Millions of yen)

6,038

12,59032,40738,592

Net income attributable to owners of the parent for quarter of the fiscal year
(Millions of yen)

3,204

5,857

18,827

21,418Net income per share for quarter of the fiscal year (Yen)

13.30

24.31

78.14

88.89

Accounting period

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net income per share for quarter of the fiscal year (Yen)¥ 13.30¥ 11.01¥ 53.83¥ 10.75

Cumulative period
Revenues from operations (Millions of yen)

Hankyu Hanshin Holdings Integrated Report 2022

136

Financial Section and Corporate Data

Major Group Companies■ Consolidated Subsidiaries (As of April 1, 2022)■ Urban Transportation■ Entertainment

Name of company

Railway operations

Hankyu Corporation

Name of company

SportsHanshin Electric Railway Co., Ltd.

Hanshin Tigers Baseball Club, Ltd.

Nose Electric Railway Co., Ltd.
Kita-Osaka Kyuko Railway Co., Ltd.

Automobile

Hanshin Contents Link Corporation
Stage

Takarazuka Creative Arts Co., Ltd.

Hankyu Bus Co., Ltd.

Umeda Arts Theater Co., Ltd.

Hankyu Taxi Inc.
Hanshin Taxi Co., Ltd.
Hankyu Corporation
Eki Retail Service Hankyu Hanshin Co., Ltd.

■ Information and Communication Technology
Name of company

Information andcommunication
technology

Hankyu Style Labels Co., Ltd.
Other

Hankyu Corporation

Kobe Rapid Transit Railway Co., Ltd.

Hanshin Bus Co., Ltd.

Retailing

Hanshin Electric Railway Co., Ltd.

Alna Sharyo Co., Ltd.
Hankyu Sekkei Consultant
Hanshin Station Net Co., Ltd.

■ Travel
Travel agency

Itec Hankyu Hanshin Co., Ltd.
YMIRLINK, Inc.
Bay Communications Inc.

Name of company

Hankyu Travel International Co., Ltd.

■ International Transportation■ Real Estate
Real estate leasing

Real estate sales andothersName of company

Name of company

Hankyu Corporation

Internationaltransportation

Hankyu Hanshin Logipartners Co., Ltd.

Hanshin Electric Railway Co., Ltd.

HHE (USA) Inc.

Hankyu Hanshin Properties Corp.

HHE (Deutschland) GmbHHankyu Corporation

HHE (HK) Limited

Hanshin Electric Railway Co., Ltd.

HHE Southeast Asia Pte. Ltd.

Hankyu Hanshin Properties Corp.

HHE: Hankyu Hanshin Express

Hankyu Hanshin Building Management Co., Ltd.
Hankyu Hanshin High Security Service Co., Ltd.
Hankyu Hanshin Clean Service Co., Ltd.

■ Other
Construction

Hankyu Hanshin REIT Asset Management, Inc.
Hankyu Hanshin Housing Support Ltd.
Hotel

Hankyu Hanshin Express Co., Ltd.

Hankyu Hanshin Hotels Co., Ltd.
Hanshin Hotel Systems Co., Ltd.
Arima View Hotel Co., Ltd.

Name of company

Hanshin Kensetsu Co., Ltd.
Chuo Densetsu Co., Ltd.

Advertising andmedia design

hankyu hanshin marketing solutions Inc.

Outsourcing services
for personnel andaccounting services

Hankyu Hanshin Business
Associate Co., Ltd.

Credit and point card Hankyu Hanshin Card Co., Ltd.
Group finance■ Equity-Method Affiliates (As of April 1, 2022)

137

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 picture business

TOHO CO., LTD. (Securities code: 9602)

Real estate leasing

TOKYO RAKUTENCHI CO., LTD. (Securities code: 8842)

Commercial broadcasting

Kansai Television Co., Ltd.

Hankyu Hanshin Holdings Integrated Report 2022

Hankyu Hanshin Financial Support Co., Ltd.

Creating Real Value:
Our Story

ProfileCreating Real Value:
The Processes

Creating Real Value:
The Foundations

Financial Section andCorporate Data

Company Overview and Investor Information
Hankyu Hanshin Holdings, Inc. (As of March 31, 2022)
Head OfficePaid-in Capital¥99,474 million

1-16-1, Shibata, Kita-ku, Osaka 530-0012, Japan

Fiscal Year-End

March 31

Number of Employees

22,869 (consolidated)

Authorized 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 79,492

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

Principal Shareholders

Ownership Breakdown
Number of shares(Thousands)

Percentage(%)

The Master Trust Bank of Japan, Ltd. (Trust account)

35,117

14.48

Custody Bank of Japan, Ltd. (Trust account)

11,974

4.94

Nippon Life Insurance Company(Standing Proxy: The Master Trust Bank of Japan, Ltd.)

5,224

2.15

STATE STREET BANK WEST CLIENT–TREATY 505234(Standing Proxy: Mizuho Bank, Ltd. Settlement &Clearing Services Division)

4,563

1.88

H2O RETAILING CORPORATION

4,207

1.73

Sumitomo Mitsui Banking Corporation

3,581

1.48

JP MORGAN CHASE BANK 385781(Standing Proxy: Mizuho Bank, Ltd. Settlement &Clearing Services Division)

2,830

1.17

Custody Bank of Japan, Ltd. (Trust account 4)

2,127

0.88

STATE STREET BANK AND TRUST COMPANY 505103(Standing Proxy: Mizuho Bank, Ltd. Settlement &Clearing Services Division)

2,083

0.86

GOVERNMENT OF NORWAY(Standing Proxy: Citibank, N.A., Tokyo Branch)

1,914

0.79

Name

Financial
institutions

28.36%

Individuals
and others

42.19%

Securities
companies

1.21%

Other
corporations

7.74%

Foreigncorporations, etc.
(individuals)

Foreigncorporations, etc.
(excl. individuals)

0.01%

20.50%

Stock Price and Annual Trading Volume (Tokyo Stock Exchange)
Stock price (¥)

5,000

Stock price

Trading volume(Thousand shares)

Trading volume (right axis)

200,000

4,000

160,000

3,000

120,000

2,000

80,0001,000

40,000

0

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022 (FY)

Notes:
1. The stock prices are as of the end of each ﬁscal year (March 31). The trading volumes are for each ﬁscal year (April 1 to March 31).
2. The data takes into account the reverse stock split and the change of trading unit conducted with an eﬀective date of August 1, 2016.

Hankyu Hanshin Holdings Integrated Report 2022

138

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