Hankyu Hanshin Holdings Group
Results Briefing Materials for Fiscal 2018
(fiscal year ended 31st March 2018)

May 23, 2018
Hankyu Hanshin Holdings, Inc.
9042 http://www.hankyu-hanshin.co.jp/en/

Contents
Key Points･･･

2

Ⅰ. Performance Highlights for Fiscal 2018
(fiscal year ended 31st March 2018)･･･

3

Ⅱ. Summary of the Medium-Term Management Plan･･･ 22

Ⅲ. Specific Projects･･･ 38

Ⅳ. Forecast for fiscal 2019 (fiscal year ending 31st March2019) and outlook for each business segment ･･･ 63

Ⅴ. Referential Materials･･･ 79Business forecasts and other projections herein are based on information available at present and logical assessments and do not
represent any promise by the Company. The actual results may differ significantly from these projections due to various factors.

1

Key Points• FY2018– Income and revenue increased following strong performance inEntertainment and Communications Business, Travel Business,
and International Transportation Business segments.
– Revenues from operations reached an all-time high, while
operating income and ordinary income rose to its second-highest
level ever.

• Medium-term management plan（–FY2022）– As part of our Long-Term Vision unveiled in May 2017, we haveestablished the Medium-Term Management Plan (FY2019–
FY2022).
– The Group will pursue the four strategies outlined in the LongTerm Vision with a view to achieving a stable operating income
level of ¥110 billion by fiscal 2022.
– For the period of the plan, we envisage capital expenditure levelof ¥610 billion (including lending), which is ¥220 billion morethan in the previous medium-term plan.
2

Ⅰ. Performance Highlights for Fiscal 2018
(fiscal year ended 31st March 2018)3

Consolidated Statements of Income(Summary)
FY2018 Results

Consolidated Subsidiaries
Equity-Method Affiliates
Total

FY2017 Results

Change92 companies 93 companies -1(2 companies increase, 3 companies decrease)
11 companies 11 companies ±0
103 companies 104 companies -1(2 companies increase, 3 companies decrease)(¥ million)

FY2018Results

FY2017
Results

Revenues from operations

760,252

736,763 +23,489(+3.2%)

Operating income

105,211104,058 +1,153(+1.1%)

Non-operating income

12,791

11,789 +1,002

Equity in income of affiliates +601

Non-operating expenses

14,22815,240 -1,012

Interest expense -1,107

103,774

100,607 +3,167(+3.1%)

Extraordinary income

35,1684,255 +30,913

Gain on contributions forconstruction +30,369

Extraordinary loss

37,533

4,057 +33,476

Loss on reduction of noncurrent
assets +31,522

Net income attributable toowners of the parent

66,361

71,302 -4,941(-6.9%)

Ordinary income（Reference）

ChangeFY2018 Results

Remarks
For details,
please see next pageTax expense ＋5,431

FY2017 Results

ChangeDepreciation and amortisation

53,27652,800+476

Financial balance ① - ②-8,728-10,074+1,346

Interest and dividend income①

1,331

1,092

+239

Interest expense②

10,059

11,166-1,1074

Consolidated Statements of Income (Breakdown for each business segment)[Key results in current period]
Income and revenue increased across the segments. The Entertainment andCommunications Business segment reported strong results in its sports business, stage
business, and communication and media business; the Travel Business segment
benefitted from increased demand for travel to Europe; the International Transportation
Business segment saw strong results particularly in air transport.
(¥ million)

Revenues from operations

Segment income

FY2018Results

FY2017
Results

Urban Transportation

235,967

237,136-1,16941,58642,237-651

Real Estate

222,586

215,709+6,876

40,954

41,970-1,016Entertainment andCommunications

121,078

115,193+5,88417,75015,655+2,094

Travel

34,02229,938+4,083

2,055

637+1,418International
Transportation

83,707

71,670+12,037

2,777

1,587

+1,189Hotels67,24865,640+1,608

2,216

2,795

-579

Other

42,81142,646

+164

1,929

1,340

+588

Adjustment-47,169-41,172-5,997-4,058-2,167-1,890

Total

760,252

736,763+23,489

105,211104,058+1,153

ChangeFY2018Results

FY2017
Results

Change5

Urban Transportation results[Railway]

The Hankyu and Hanshin lines performed well, contributing to a boost in revenues fromoperations; however, operating income was down due to higher depreciation andamortisation and power costs.

[Automobile]

Revenues from operations declined after Nippon Rent-A-Car Hankyu was excluded fromthe scope of consolidation in March 2017.Operating income declined too because ofhigher fuel costs and depreciation and amortisation.
(¥ million)

FY2018Results

FY2017
Results

Change%Revenues from operations

235,967

237,136-1,169-0.5%

Operating income

41,58642,237

-651

-1.5%

[Breakdown by type of business](¥ billion)
Revenues from operations

FY2018Results

Y on Y

Railway

152.2

+2.3

Automobile

48.0

-1.0

Retailing

30.6

-2.4

Advertising

8.7

+0.2

Others8.7-0.4*Not including head office expenses /adjustments.

・Impact of excluding Nippon Rent-A-Car
Hankyu from the scope of consolidation.
(About ¥-1.3billion)

・It is the influence that Iina dining Co.,Ltd.
presenting Home-meal replacement businessbecame the equity-method affiliate from theconsolidated subsidiary.(About ¥-1.1 billion)
・ Impact of excluding Hankyu Style Labels’
apparel business from the scope of
consolidation.(About ¥-0.9 billion)

6

[Urban Transportation] Railway Performance results
Hankyu Corporation

Fare revenues (¥ million)*
FY2018Results

FY2017
Results

ChangePassenger volumes (Thousands)*
FY2018Results

FY2017
Results

ChangeCommuter pass33,19832,628+570(+1.7%)

335,005

329,305 +5,700(+1.7%)

Workers

28,69028,138+552(+2.0%)

234,816230,010 +4,806(+2.1%)

Students

4,507

4,489

+18(+0.4%)

100,189

99,295

Other tickets

63,13762,720+417(+0.7%)

319,939

318,064 +1,875(+0.6%)

Total

96,335

95,348+987(+1.0%)

654,945647,369 +7,576(+1.2%)+894(+0.9%)

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2018Results

FY2017
Results

ChangePassenger volumes (Thousands)*
FY2018Results

FY2017
Results

ChangeCommuter pass

11,797

11,563+234(+2.0%)

122,073

119,768 +2,305(+1.9%)

Workers

10,576

10,356+220(+2.1%)

96,401

94,479 +1,922(+2.0%)

Students

1,221

1,206

+14(+1.2%)

25,67225,289Other tickets

21,63821,136+501(+2.4%)

119,567

116,998 +2,569(+2.2%)

Total

33,43632,699+736(+2.3%)

241,641

236,766 +4,875(+2.1%)+383(+1.5%)＊ Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway.

7

[Urban Transportation] Transportation revenue (Factors of YoY Change)《Hankyu Corporation》《Hanshin Electric Railway》

Transportation revenue (tier 1 + tier 2)

Transportation revenue (tier 1 + tier 2)(¥ million)(¥ million)
Totals forcommuter passes
and other tickets

1Ｑ

2Ｑ

3Q

4Q

Total

Totals forcommuter passes
and other tickets

1Ｑ

2Ｑ

3Q

4Q

Total

FY2018 Results

24,532 23,901 24,313 23,588 96,335

FY2018 Results

8,474

8,687

8,200

8,073 33,436

FY2017 Results

24,194 23,656 24,097 23,399 95,348

FY2017 Results

8,284

8,440

8,004

7,970 32,699

Change

+190

+246

+195

+102

Change
(%)

+338

+244

+215

+188

+987

+1.4％ +1.0％ +0.9% +0.8% +1.0%

Factors of YoY Change (estimated)
・Cherry-blossom season surge(April, 2017・March, 2018) +¥105million
・Golden Week holiday surge+¥50million
・Autumn foliage surge＋¥29million
・Other factors (e.g. increase in line-side areas populations, andincrease in inbound demand)+¥804million

(%)

+736

+2.3％ +2.9％ +2.4% +1.3% +2.3%

Factors of YoY Change (estimated)
・Increase in visitors to Koshien Stadium (professional baseballgames)+¥98million
・Increase in visitors to Kyocera Dome (events, professional baseballgames)+¥34million
・Other factors (e.g. the strong performance of the Hanshin Namba
Line, increase in line-side areas populations, and increase in
inbound demand)+¥604million

8Real Estate results[Real estate leasing]
Revenues from operations increased, with rental buildings in the Umeda area
performing well; however, operating income declined due to higher expenditures for
performing repairs and revamping commercial facilities.

[Real estate sales and Others]
A rise in the total number of units contributed to an increase in revenues fromoperations, but operating income was down due to higher sales expenses.
【Reference】 Condominium sales：+72（1,159 units; previous year 1,087 units）*Figures include units in shared buildings that the Group partly owns.

(¥ million)

FY2018Results

FY2017
Results

Change%Revenues from operations

222,586

215,709+6,876+3.2%

Operating income

40,954

41,970-1,016-2.4%[Breakdown by type of business](¥ billion)
Revenues from operations

FY2018Results

Y on Y

Real estate leasing

106.7

+2.7

Real estate sales and Others

133.5

+4.8

*Not including head office expenses/adjustments.

9Entertainment and Communications results[Sports]
Income and revenue increased due a number of factors: Hanshin Tigers Baseball Club’s
advanced to the Climax Series, admissions for Hanshin Tigers’ regular season games
increased, and food, drink, and merchandise sales were strong.

[Stage]Income and revenue increased, with the stage business benefitting from the popularityof shows such as Snow Troupe’s A Passage Through The Light: Maximilien Robespierre,
the Revolutionary + Super Voyager! and Flower Troupe’s Family of Poe.

[Communication, media and Others]

Income and revenue increased, with the information services business performing well in
e-commerce website construction and maintenance services, and the broadcast andcommunications business increasing cable TV subscriptions.
(¥ million)

FY2018Results

FY2017
Results

Change%Revenues from operations

121,078

115,193+5,884+5.1%

Operating income

17,75015,655+2,094 +13.4%[Breakdown by type of business](¥ billion)
Revenues from operations

FY2018Results

Y on YSports

36.8

+2.9

Stage

34.0

+1.2

Communication, media and Others

51.4

+2.1

*Not including head office expenses /adjustments.

10

Travel results
Income and revenue increased, with the overseas travel business seeing higher numbersof visitors to destinations in Europe and China and the domestic travel business alsoachieving strong visitor numbers.

(¥ million)

FY2018Results

FY2017
Results

Change%Revenues from operations

34,02229,938+4,083+13.6%

Operating income

2,055

637

+1,418+222.5%[Performance Highlights for Fiscal 2018]【Overseas travel】
Sales volume was higher than the level of theprevious year. The number of visitors to European
destinations recovered from the impact of terrorist
incidents, and sales for destinations in China andelsewhere in Asia grew.

◆Overseas travel billings : Ranking 3(※)
Billings： ￥206.6billion（Y on Y +10.5%)◆Domestic travel billings : Ranking 6(※)
Billings： ￥136.1billion（Y on Y +5.5%)◆Total travel billings : Ranking 6(※)
Billings： ￥345.5billion（Y on Y +8.4%)【Domestic travel】
Shikoku destinations experienced a reactionary※ The above figures indicate the aggregated results for Hankyu Travel
International, Hankyu Hanshin Business Travel, and Hanshin Travel International decline from the previous year, when it benefitted(intercompany transactions offset)
from the popularity of the Shikoku pilgrimage in the※ Source: Sales volume indicates the aggregated volume for April to March. The
reverse order (“Gyaku-uchi”). Other domestic
values for industry ranking are based on aggregated results from April to
February.
destinations fared better, particularly those in※ Source: Japan Tourism Agency, ‘Bulletin on Sales Volumes among the Major
Hokkaido and Kanto, and sales volume surpassed theTravel Agents’ (Shuyō ryokō-gyōsha no ryokō toriatsukai jōkyō sokuhō)previous year’s level.
11International Transportation results
Income and revenue increased, with subsidiaries in Japan and those in East Asia andEurope performing well, particularly in air transport.

(¥ million)

FY2018Results

FY2017
Results

Change%Revenues from operations

83,707

71,670+12,037+16.8%

Operating income

2,777

1,587

+1,189+74.9%【 Performance Highlights for Fiscal 2018】• In Japan, both air and ocean transport performed well.
•

In America, Asia-origin imports performed well, as did logistics.

•

Europe and East Asia saw strong results, particularly in air exports of automobile components.

•

As for the ASEAN region, both air and ocean transport performed well, but operating income waslower than in the previous year because of logistics centre-related expenses.

12Hotels results
Revenues from operations increased thanks in part to the opening of remm ROPPONGI in
March 2017, but operating income decreased as a result of a YoY decline in sales among
existing hotels and an increase in expenses, including those associated with the openingof remm ROPPONGI.
(¥ million)

FY2018Results

FY2017
Results

Change%Revenues from operations

67,24865,640+1,608+2.5%

Operating income

2,216

2,795

-579

-20.7%[Performance Highlights for Fiscal 2018]（reference）Not including remm ROPPONGI (opened March 2017)
Occupancy rates of Hankyu Hanshin Hotels
Total
93.5％（＋0.9points from previous year）
Tokyo metropolitan area 90.2％
Kansai area 95.4%(+1.1 points from previous year)（-0.6points from previous year）
Tokyo metropolitan area 88.7%(-2.1 points from previous year)
Average daily rates（ADR）of Hankyu Hanshin Hotels
Total¥13,956（-¥492 from previous year）
Average daily rates (ADR) of Hankyu Hanshin Hotels
Tokyo metropolitan area ¥16,417
Total ¥13,832 (-¥616from previous year)（-¥254 from previous year）

Occupancy rates of Hankyu Hanshin Hotels
Total 92.7％(+0.1 points from previous year)

Kansai area ¥13,549 (-¥591 from previous year)
Tokyo metropolitan area ¥15,449 (-¥1,216 from previous year)【Hotels business】
・While the hotels maintained high occupancy rates, average daily rates (ADR) was negatively affected by the vacation
rentals and new hotels. In the Tokyo metropolitan area, however, the decline in ADR was less than in the previous
year when the full-year contribution of remm ROPPONGI is discounted.
【Parties business and Restaurants business】
・Revenue from the restaurants business was lower compared to the previous year, reflecting the closure of an outside
restaurant. On the other hand, revenue from the parties business was up from the previous year; the businessachieved strong results with corporate bookings and events.
13

Consolidated Statements of Income(Non-operating profit and loss)(¥ million)

FY2018Results

FY2017
Results

Operating income

105,211104,058+1,153Non-operating income

12,791

11,789+1,002

9,232

8,630

+601

14,22815,240-1,012

10,059

11,166-1,107103,774

100,607+3,167

Equity in income of affiliates

Non-operating expenses
Interest expenses

Ordinary income

Change14

Consolidated Statements of Income(Extraordinary profit and loss)(¥ million)

FY2018Results

FY2017
Results

ChangeExtraordinary profit and loss

-2,364

197-2,562Extraordinary income

35,1684,255+30,913Gain on contributions for construction

32,483

2,114+30,369

Other

2,685

2,140

+544

37,533

4,057+33,476

Loss on reduction of noncurrent assets

33,702

2,180+31,522

Other

3,831

1,877

+1,953Extraordinary loss

15

Consolidated Statements of Income(Net income attributable to owners of the parent)(¥ million)

FY2018Results

FY2017
Results

Income before income taxes

101,410

100,805+605

Total income taxes

33,362

27,931+5,431

Income taxes—current

28,38926,081+2,308

Income taxes—deferred

4,972

1,850

+3,122

Net income

68,04772,873-4,825

Net income attributable to noncontrolling interests

1,685

1,570

+115

Net income attributable to owners of
the parent

66,361

71,302-4,941

Change16

Consolidated Balance Sheets
FY2018Results

Net assets

Liabilities

Assets(¥ million)

FY2017
Results

Current assets

296,487

269,992

Noncurrent assets

2,113,617

2,079,839

Total assets

ChangeTrade receivables:+9,126+26,495 Land and buildings for sale：+8,942
Investment securities:+17,974+33,778 Property and equipment andintangible assets:+12,759

2,410,105 2,349,831 +60,273

Current liabilities

406,911419,291-12,380

Long-term liabilities

1,136,681

1,125,879+10,801

1,543,592 1,545,171-1,578

Total liabilities

804,764

759,875

Accumulated othercomprehensive income

32,961

27,074

Subscription rights to shares

ー

496

-496

Non-controlling interests

28,786

17,213+11,572

866,512FY2018Results

FY2017
Results

ChangeDebt

767,431788,931-21,499

Bonds

92,000102,000-10,000

Lease obligations

7,326

8,591

-1,264

866,758

899,523-32,764

Interest-bearing debt

Accounts payable：+10,942
Advances received：+8,789
Trade payables：+6,804

Net income attributable to owners of theparent:+66,361+44,888 Less treasury stock, at cost:-10,709
Payment dividend:-9,360

Shareholders’ equity

Total net assets

Remarks

Valuation difference on available-for-sale+5,887 securities:+4,601

Gain on receipt of deposits for subscriptions toshares among consolidated subsidiaries

804,659 +61,852

17

Consolidated Statements of Cash Flows(¥ million)

FY2018Results

FY2017
Results

Cash flows from operating activities

135,821

115,633

53,276-26,005

52,800-22,714

Cash flows from investing activities-88,351-84,845

Purchases of noncurrent assets-102,863
21,222-92,767
13,973-43,242-30,595-10,689-9,360-32,764-5,271-8,803-17,046

360
4,588

-673
-480

22,530383
27,501

22,363648
22,530Depreciation and amortisation
Income taxes (paid) refunded

Receipt of contributions for construction

Cash flows from financing activities
Purchase of treasury stock
Dividends paid
Decrease (increase) in interest-bearing debt

Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of year18

《Reference》 Consolidated Statements of Income(¥ billion)[Upper table] Revenues from operations[Lower table] Operating income

Total

FY2018Results①

FY2018
forecasts

FY2018FY2017
Change Forecasts Change
ChangeResults(As of Nov.)
(As
of
May)
①-②
①-③
①-④
④
②
③

760.3

765.0

-4.7

750.0 +10.3

736.8 +23.5

105.2

104.0

+1.2

96.0

+9.2

104.1

+1.2

236.0

236.2

-0.2

234.5

+1.5

237.1

-1.2

41.6

41.2

+0.4

39.6

+2.0

42.2

-0.7

222.6

232.7

-10.1

225.5

-2.9

215.7

+6.9

41.0

41.2

-0.2

38.1

+2.9

42.0

-1.0

121.1

118.6

+2.5

115.3

+5.8

115.2

+5.9

17.8

16.2

+1.6

14.5

+3.3

15.7

+2.1

34.0

33.7

+0.3

32.3

+1.7

29.9

+4.1

2.1

1.2

+0.9

0.5

+1.6

0.6

+1.4

83.7

78.3

+5.4

73.1

+10.6

71.7

+12.0

2.8

2.0

+0.8

1.7

+1.1

1.6

+1.2

67.2

66.9

+0.3

67.9

-0.7

65.6

+1.6

2.2

2.4

-0.2

2.6

-0.4

2.8

-0.6

(Breakdown for each business segment)

Urban Transportation
Real EstateEntertainment andCommunications
TravelInternational
Transportation
Hotels19

《Reference》 Consolidated Statements of capital expenditure(¥ billion)

FY2018Results①

FY2018
forecasts(As of
Nov.)

Change①-②

FY2018FY2017 Change
Forecasts Change
Results①-③①-④(As of May)
④

③

②

86.4

94.0

-7.6

94.0

-7.6

86.2

+0.2

Urban Transportation

35.0

38.5

-3.5

38.5

-3.5

31.2

+3.8

Real Estate

39.9

44.1

-4.2

44.1

-4.2

43.1

-3.2

Entertainment and Communications

7.6

9.8

-2.2

9.8

-2.2

7.4

+0.2

Travel

0.5

0.9

-0.4

0.9

-0.4

0.5

+0.0

International Transportation

0.7

0.7

+0.0

0.7

+0.0

0.4

+0.3

Hotels

2.3

3.1

-0.8

3.1

-0.8

3.2

-0.9

Total capital expenditure(Breakdown for each business segment)

20

《Reference》 Consolidated Statements of Depreciation and amortisation, EBITDA(¥ billion)

FY2018Results①

FY2018
forecasts(As of
Nov.)

Change
①-②

④

③

②

Total Depreciation andamortisation

FY2018FY2017 Change
Forecasts Change
Results①-③①-④(As of May)

53.3

53.7

-0.4

53.9

-0.6

52.8

+0.5

Urban Transportation

26.7

27.0

-0.3

26.9

-0.2

25.9

+0.7

Real Estate

16.5

16.5

+0.0

16.7

-0.2

16.8

-0.3

Entertainment and Communications

6.8

7.0

-0.2

7.2

-0.4

6.7

+0.1

Travel

0.7

0.7

-0.0

0.7

-0.0

0.7

-0.0

International Transportation

0.7

0.7

-0.0

0.8

-0.1

0.7

-0.0

Hotels

2.1

2.1

-0.0

2.1

-0.0

1.9

+0.2

160.8

160.0

+0.8

152.0

+8.8

159.3

+1.5

Urban Transportation

68.2

68.2

+0.0

66.6

+1.6

68.2

+0.1

Real Estate

57.5

57.7

-0.2

54.8

+2.7

58.8

-1.3

Entertainment and Communications

24.6

23.3

+1.3

21.8

+2.8

22.6

+2.1

Travel

2.7

1.9

+0.8

1.2

+1.5

1.4

+1.4

International Transportation

3.4

2.7

+0.7

2.5

+0.9

2.3

+1.2

Hotels

4.3

4.5

-0.2

4.7

-0.4

4.7

-0.4

(Breakdown for each business segment)

Total EBITDA(Breakdown for each business segment)

21

Ⅱ. Summary of the Medium-Term
Management Plan

22

23

Long-Term Vision（Overall vision）
The slogan for the Hankyu Hanshin Holdings Group’s Long-Term Vision for 2025 (fiscal 2026) is:‘Enhancing line-side areas and expanding fields’
Sustainably enhance corporate value
Enhance daily life
(customer) value
Regarding these socioculturalchanges as business
opportunities, we will provide
innovative products and services
through our business operations.

Enhance social value
Build relationships of trustwith various stakeholders,meet their expectations, andcontribute to society.

Enhance economicvalue
We will strive to maintain andimprove our profitability andfinancial soundness as a topclass private railways
operator.

Umeda and line-side areas
x stock businesses

Tokyo metropolitan area and overseas
markets x stock businesses

Make our railway theabsolute best among the
Kansai networks.
Strategy①

concentrated in Umeda and line-side areas).

flow businesses

Strengthen competitiveness by
Construct a stable revenue base in thoroughly pursuing brandthe Tokyo metropolitan area andoptimisation and differentiation.
overseas markets.
(diversify the portfolio, which is currently
Strategy③
Strategy②Groupwide initiatives,
new business fields, etc.

Make greater use of the Group’s collective strength and develop new
business fields.
Strategy④
The coming age of fullscale population decline

Further technologicaladvances (AI, IoT, etc.)

Economic growthin Asia

Declining birth rate
and aging population

Crumbling infrastructure

Improvements to public transport
Growing numbers of infrastructure (airports, rail andmotorway networks)
overseas visitors

Tightening oflabour market
Concentration of
population into
urban areas

Opportunity for Kansai to develop its position as gateway for Asia and the wider world

24

Long-Term Vision（Four strategies）
Umeda Line-side
areas
・

Tokyo
metropolitan
area overseas

・

Umeda and line-side areas x stock businesses
Make our railway the absolute best among the Kansai networks.
Strategy①
We aim to increase the resident and non-resident population of lineside areas. To this end, we will channel into these areas the dynamismof the Tokyo-Nagoya-Osaka axis and the power of Asia and otherregions of the world, attract new industries and cutting-edge
technologies ahead of other companies, and support efforts to develop
thriving local communities.

Flow business
Strengthen competitivenessby thoroughly pursuing brand
optimisation anddifferentiation.

Strategy③
Tokyo metropolitan area and overseas markets x
stock businesses
Construct a stable revenue base in the Tokyo metropolitan area
and overseas markets(diversify the portfolio, which is currently concentrated in Umeda
and line-side areas).
Strategy②
Our property portfolio is currently concentrated in Umea and line-side
areas. To compensate for downsizing in the Kansai area, we will
diversify our property profile by acquiring additional assets including
rental property in Tokyo’s large market and in overseas markets thatare set to grow.

Stock（Use assetes）
Group-wide initiatives, new business fields, etc.

Thoroughly optimise the Hankyu
Hanshin brand value anddifferentiate the products andservices from the competition soas to strengthen competitiveedge and achieve further
business expansion.

Flow（non-assets）

Make greater use of the Group’s collective strength and develop new business fields.
Strategy④
In addition to pursuing Group-wide initiatives, we will introduce cutting-edge technologies into existing businesses,
venture into new business fields, and thereby provide culturally enriched and innovative lifestyle options.
25

Long-Term Vision（Management Indicators）
We will pursue the four strategies with a view to achieving the following targets as of2025 (fiscal 2026). Achieving these targets will keep us on course for maintaining atleast the current levels of operating income in the 2040s, when demographic changes
will have had a major impact on business.

Profitability

Financial soundness

Management Indicators

Targeted figure for 2025
(FY2026)

operating income¥120 billion

EBITDA¥200 billion

Interest-bearing debt
/EBITDA ratio

Between5 and 6 times

・Ensure that we will be one of the most profitable private railway operators
in 2025 (fiscal 2026).
・While accelerating growth investment, ensure that we remain one of themost financially sound private railways operators.
26

Placement of Medium-Term Management Plan
Mission : What we try to achieve
By delivering “Safety and Comfort” and “Dreams and Excitement” ,we create satisfaction among our customers and contribute to society.

Values : What is important to us
Everything we do is for the customer. That’s where it all
starts.
Sincerity
Gain customers’ confidence by always being sincere.
Foresight &With our pioneer spirit and flexible thinking, we create a new
Creativity
value.
Respect for People Everyone is absolutely invaluable to the Group.
Customers FirstGroupManagement
Philosophy

Long-Term
VisionThe kind of company we hope to be as well as the basic approachand strategies for achieving this vision.

The Medium-Term Management plan sets out specificaction plans for medium-term projects.
Medium-Term
Management
Plan

As part of an annual rolling plan, we set out specific action plans with aview to achieving our Long-Term Vision. In the run-up to fiscal 2026, thecumulative impacts of these actions will bring us closer to our vision of
the company we hope to be in the long-term.

The current Medium-Term Management Plan is the first action plan following the unveiling of
our Long-Term Vision.

The plan defines fiscal 2022 as an interim target year or ‘milestone’ on the path to our LongTerm Vision, and the period from fiscal 2019 to fiscal 2022 will be an action plan period
during which we will draw up a detailed roadmap and start putting policies into action.

27

Current operating income levels
・From fiscal 2016 through fiscal 2018, operating income trended a little abovethe ¥100 billion mark in real terms, discounting special factors such as gainon the disposal of land for large-scale commercial facilities.
(¥ billion)

110.3
110
Impact of special
factors such as gainon the disposal ofland for large-scalecommercial facilities

104.1

105.2

100

operating income
営業利益

91.8

94.0

Real operating income
level(Approx.¥100 billion)

operating income(after adjusting for special factors)
営業利益(特殊要因調整後)

90

FY2014FY2015

Above the ¥90 billion mark,discounting special factors

FY2016FY2017FY2018

Above the ¥100 billion mark,discounting special factors
28

Framework of the Medium-Term Management Plan ①
・Under the current plan, we aim to raise the current operating income level from ¥100
billion to ¥120 billion by fiscal 2026. To this end, we will pursue actions in line with ourfour strategies, and in allocating our capital resources, we will focus on growthinvestments linked to the four strategies.
・Additionally, we will aim to raise operating income to ¥110 billion (the midway
point of the ¥100–120 billion region) by the interim/milestone year of fiscal 2022.
Four strategies～Business strategies related to the Long-Term Vision～①Further strengthen the stock businesses in the Umeda and line-side areas (e.g. railways, realestate leasing, media and communications, hotels)②Accumulate stock in the Tokyo metropolitan area and overseas markets③Increase competitiveness of flow businesses (real estate sales, sports, stage, information services,travel, and international transportation)④Make greater use of the Group’s collective energies and venture into new business fields

Financial policy• As part of our efforts to achieve our Long-Term
Vision, we will focus on growth investments
linked to the four strategies while aiming tofurther increase operating income and EBITDA.
• We will continue to maintain our financial
soundness. (Interest-bearing debt/EBITDA ratio
will be prioritised over interest-bearing debt as abenchmark for financial soundness.)• As for returns to shareholders, we envisage anannual dividend per share of ¥40 and a total
payout ratio of 30%.

Forward-looking investment
While striking a balance with financial soundness, we willprioritise growth investment under strategies ① to ④.

Maintaining
financialsoundness

Returns toshareholders

Prioritise interest-bearing
We envisage a total
debt/EBITDA ratio as a benchmark payout ratio of 30%.
for financial soundness.

29

Framework of the Medium-Term Management Plan ②
 Investments under the Strategies ① and ② (which involve stock businesses), excluding those foracquiring functioning property, will take some time to yield returns. Likewise, when it comes toinvestments under the fourth strategy (for developing new business fields), it will takeconsiderable time to establish new businesses.
⇒We expect that investments under Strategies ①, ②, and ④ will start contributing to operating income mainly inthe second half of the Long-Term Vision (fiscal 2023–2026).

 Therefore, for the current Medium-Term Management Plan (the first half of the Long-Term
Vision—fiscal 2019–2022), we will aim to raise operating income by ¥10 billion primarily
through investments under Strategy ③ (which involves flow businesses).

〈Four strategies〉
Strategy① Further strengthen the stock business in the Umeda and line-side aeras
Capture inbound demand/ Increase the value of our assets in the Umeda area/ Invigorate key
line-side bases/ Construct new rail links to improve the transport network
Strategy② Accumulate stock in the Tokyo metropolitan area and overseas markets
Acquire more stock in the Tokyo metropolitan area / Open more hotels in the Tokyo metropolitan
area/ Develop plans for acquiring stock (real-estate) overseas
Strategy③

Increase competitiveness of flow business (real estate sales,sports, travel, and international transportation)

Expand the condominium business in Japan and overseas / Develop the information
services business/ Raise the profitability of the Travel Business segment / Increase
handling volume in the International Transportation Business segment
Strategy④Make greater use of Group's collective energies and venture
into new business fields
30

Growth process in run-up to fiscal 2026 (hypothetical)

Aim to raise operating incomeby ¥10 billion by fiscal 2022
primarily in flow businesses

fiscal2022
Interim target year

fiscal2026
Final year ofLong-Term
Vision¥120 billion¥110 billion＋¥10 billion
fiscal2016–2018
Real operating income
level, discounting
special factors
Approx.¥100 billion

increase in flow businesses
investments in stockbusinesses
Current Medium-Term Management
Plan(fiscal2019–2022)＋¥10 billion(fiscal2023–2026)

Over the second half of the Long-Term Vision (fiscal 2023–2026), we expect to see a further rise of ¥10 billion in
operating income. This increase will be driven primarily by
the returns on investments in stock businesses (e.g., Umeda
1-1 Project). Other factors will include a further operating
income increase in flow businesses and contributions from the
new business fields we will develop.
31Operating income trends in current plan・As part of our effort to achieve the operating income target of ¥120 billion by fiscal
2026, we will aim to make the Group capable of steadily reaching an operating income
level of ¥110 billion by fiscal 2022.

・Operating income is expected to reach ¥110 billion in fiscal 2019 because of gain on
disposal of land for large-scale commercial facilities and other special factors.
(¥ billion)

Impact of special factors(e.g., gain on disposal ofland for commercial
facilities)

Final year ofLong-Term
Vision(FY2026)

interim/milestoneyear(FY2022)

120
1200

110.0

110.3

110.0
104.1 105.2

120.0
＋10.0

＋10.0

100
1000

91.8

96.0

94.0

98.0

previous plancurrent plan

Hypothetical growth inoperating income

800
80
FY2014FY2015

IncomelevelsAbove the ¥90
discounting
billion markspecialfactors

FY2016FY2017FY2018FY2019A little above the ¥100 billion
mark

FY2020

FY2021

Above ¥100
billionFY2022

FY2023

FY2024FY2025

FY2026¥110 Proceed toward target ¥120of ¥120 billion
billionbillion32

Cash flows during current plan (estimates)
During the current plan, we expect EBITDA-measured cash flows of ¥680 billion.On theother hand, we expect outgoing cash flows of ¥910 billion as a result of actively investing
toward future growth.This will leave a shortfall of ¥230 billion; we will cover this shortfallwith additional borrowing.
【FY2019～2022 Hypothetical cumulative cash flow for four-year period】

Cash inCash out(¥billion)

Strategic investment
framework 100

EBITDA 680

Growth investment (forachieving the LongTerm Vision) 270
Investment in maintenanceand renewal of existing
infrastructure & etc. 240

Capitalinvestment(including
lending)
610

Cash out
total
910

Net increase in for-saleproperty and equity 60

Additionalborrowing 230

Return to Shareholders 80
Interest expense, tax
payment, etc. 160
33

Capital investment (including lending) in fiscal 2019-2022
Capital investment (including lending) in fiscal 2019-2022 is expected to total approx. ¥610 billion (up¥220 billion compared to the previous plan)
・Growth investment (for achieving the Long-Term Vision) will be ¥100 billion up from the previous plan.
・We will devote ¥100 billion for a new strategic investment framework (large-scale projects, M&A
activities, etc.)
・We will maintain the same level of investment in maintaining or renewing existing infrastructure while
ensuring that we invest the resources necessary to maintain safety.
Strategy③
Flow business andStrategy④New business fields¥610billion
Strategic investment
framework¥100billion¥390 billion¥170 billion（Approx.¥40billion
per year）

Increase of¥100 billion
from previous
plan¥220billion（Approx.¥55billion
per year）

Previous plan
FY2016～2019
for four-year period

Growth investment (forachieving the LongTerm Vision)¥270billion（Approx.¥70billion per
year）
Investment inmaintenance andrenewal of existing
infrastructure¥240billion（Approx.¥60billion per
year）

Current plan
FY2019～2022
for four-year period

Breakdown of¥270 billion
growthinvestments(Please see pages 48 to 56)

Approx.
10％

Approx.

30％

Approx.

Strategy②
Tokyo metropolitan area
and overseas markets x
stock businesses

60％

Strategy①
Umeda and line-side
areas x stockbusinesses(Please see pages 46 to 47) (Please see pages 40 to 45)

34

Returns to Shareholders■Shareholder Return Policy
Pay stable annual dividends and acquire treasury stock- Regarding dividends of surplus for fiscal 2018, we plan to increase the annual
dividend per share from ¥35 to ¥40 (the total annual dividend will be ¥9.9
billion) and increase the total payout ratio from 25% to 30%. Accordingly, we
will acquire treasury stock (the total acquisition will be ¥10 billion).
- For fiscal 2019, the total payout ratio will be 30%, the annual dividend pershare will be ¥40, and we will acquire treasury stock.
<Reference> Formula for calculating total payout ratio
Total payout ratio of FY[N](％)=(Total dividend of FY[N])+(Acquisition of treasury stock in FY[N+1])(Net income attributable to owners of parent in FY[N])Acquisition of treasury stock

Total dividend

Dividend per share(right axis)

20
15
10
5

0
(¥ billion)

FY2013

35

9.1

30＊

8.7

7.6

7.6

8.8

25＊

6.3

35＊
30＊

FY2014FY2015FY2016× 100

8.8
FY20174040 (forecasts)

10.0

35

40

Total payout ratio of 30%,
dividend of ¥40, Company toacquire treasury stock (plan)25

9.9
FY201830

FY201920(¥)＊The Company conducted a 1-for-5 reverse stock split with an effective date of 1st August 2016. The per-share annual dividends for fiscal
years up to and including fiscal 2016 reflect the stock split.

35

Fiscal 2026 management indicators outlook
FY2018Results
Operating income
EBITDA※1
Interest-bearing debt

FY2019Forecasts

FY2022
Forecasts¥105.2billion ¥110.0billion¥110.0billion¥120.0billion¥160.8billion ¥168.0billion¥180.0billion¥200.0billion¥866.8billion ¥900.0billion¥1,070.0billion－

FY2026(The company wehope to be)

Interest-bearing debt
/EBITDA ratio

5.4times

5.4times

5.9times

between 5 and6timesD/E ratio※2

1.0times

1.0times

1.0times－¥66.4billion¥70.0billion¥70.0billion

－

8.2%

8.1%

7%

－

¥837.9billion ¥875.0billion¥1,045.0billion－

5.8times－

Net income attributable toowners of the parent

ROE(Reference)
Net interest-bearing
debt※3
Net interest-bearing
debt/EBITDA ratio

5.2times

5.2times※1 EBITDA=operating income + depreciation expenses + amortisation of goodwill※2 D/E ratio＝interest-bearing debt / equity※3 Net interest-bearing debt=interest-bearing debt - cash and deposits

36

《Reference》 Trends in operating revenues and operating income
752.3

Revenues fromoperations

683.7

Operating income

653.3

Ordinary income

owners of the parent

638.8

649.7

90.7

682.4

70.1
74.9

73.8
64.7

685.9

74.9

91.8

81.2

94.0

0.6
※１

FY200820.6
FY200950.4

10.8
FY2010760.3※2 736.8

104.1

104.5

105.2

100.6

790.0

110.0

103.8 107.0

85.6

65.4
57.4

707.4

110.3
87.9

77.8

679.2

(¥ billion)

Net income attributable to

70.0

71.3

FY2016FY2017

66.4

70.0

54.2
46.5

39.3

39.7

FY2012FY201346.4

18.1
FY2011FY2014FY2015FY2018FY2019forecasts※1 Includes Department Store Business (consolidated up to the first half of fiscal 2008).
※2 As of fiscal 2017, the presentation of revenues from operations of the International Transportation Business has changed from net togross amounts.

37

Ⅲ. Specific Projects

38Schedule for the Main Projects of the Business Strategies① and ②（FY）
Kita-Osaka Kyuko Railway Line
Extension Project

Umeda 1-1 Project
Chayamachi 17-banchi
project
Nishinomiya Kitaguchi
Hankyu Building (Provisional
Name) Construction Project

Strategy①Extension of Ebista Nishinomiya,a commercial facility adjacent toHanshin Nishinomiya

Fukushima 5-Chome and 7Chome joint development
project

2019

2020

2021

2022

2023

●Intended start of service●Complete phase I construction●Complete phase Ⅱ

construction(All construction to becompleted by spring 2022)

Commencement of phase II●Opened● Scheduled start of service● Scheduled start of service● Scheduled start of service

Ebie 1-chome development
plan●(Scheduled time of condominium completion)

Project to relocate
Takarazuka Hotel● Scheduled start of service

Project to construct Saito
Moegi Distribution Centre(provisional name)
Project to rebuild Kobe
Hankyu Building’s east wing
and renew its west wing

Strategy②

2018●Completion of construction work in B zone
●Completion of construction work in A
zone

●Scheduled time of

construction completion

Project to open remm+
Ginza● Scheduled start of service

Kyobashi 2-6
Redevelopment Plan

●Scheduled time of construction completion

Redevelopment Project for
Area in Front of JR Yotsuya
Sta.
Ginza 3-chome Project●Scheduled time of construction completion●Scheduled time of construction completion
39

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas①

Kita-Osaka Kyuko Railway Line Extension Project【Development plan summary】
・Extension distance:

Shin-Minoh
Sta.
(provisional
name)

2.5 km, from Senri-Chuo Sta. to Shin-Minoh Sta. (provisional name)・New stations:

Approx.
1.1km

Minoh-Semba Sta. (provisional name), Shin-Minoh Sta. (provisional name)
Act on Rail Tracks

National Route
171

・Estimated project cost: ¥65.0 billion
・Demand: 45,000 people per day【Business scheme】
・Developer:

Kita-Osaka Kyuko Railway Co., Ltd. and Minoh City (development of infrastructuralcomponents between Minoh-Semba Sta. and Shin-Minoh Sta.)・Operator: Kita-Osaka Kyuko Railway Co., Ltd.
・Funding programme: Social capital development grant・Portion to be borne by Kita-Osaka Kyuko Railway Co., Ltd:

Minoh
Semba Sta.
(provisionalname)¥11.0 billion; Amount commensurate with profits(including the increase in demand associated with related community development)【Schedule】

December, 2015: We have obtained a license for railway business and a

National Route 423（Shin-midosuji）

SenriChuo
Sta.

charter for railway track operations
Railway Business Act

Approx.
1.4km

December, 2016: Commencement of construction
End of FY2021: Intended start of service
SenriChuo
Sta.

Approx. 1.4km

Underground section

Minoh
Semba Sta.
(provisional
nameApprox. 1.1km

Shin-Minoh
Sta.
(provisional
name)

National Route 423 Elevated section National
Route 171 40(Shin-midosuji）

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas②

Umeda 1-1 Project (Name of the building：Osaka Umeda Twin Towers South)【Project summary】
Location

1-1 Umeda, Kita-ku, Osaka

Site area

Approx. 12,200 ㎡*

Total floor space

Approx. 260,000 ㎡

Number of floors

38 floors above ground and 3 below groundPurposePlanned total
investment
Construction
completion【Conceptual illustration of the building exterior】

Department store, offices, halls, etc.
¥89.7 billion
Spring 2022

* Including 750㎡ of road between Dai Hanshin Building and Shin Hankyu Building【Schedule】
July 2015

Begin phase I construction

April 2018

Complete phase I construction* (Shin Hankyu
Building and Dai Hanshin Building East Wing)

June 2018

Partial opening of new department store.
Phase II (west wing of Dai Hanshin Building):
Start demolition work

Spring 2019

Phase Ⅱ (begin phase Ⅱ construction)

Autumn 2021

Complete phase II construction (newdepartment store part) and fully open new
department store

Spring 2022

Complete all construction and open offices* The project is scheduled to be completed in spring 2022. In that year, Umeda Hankyu
Building, which houses Hankyu Department Store (Hankyu Umeda Main Store), will berenamed ‘Osaka Umeda Twin Towers North’, and the two adjacent buildings will bechristened the ‘Osaka Umeda Twin Towers’.

【Phase I】【Phase Ⅱ】

4
2
1

3

5

①Dai Hanshin Building East Wing(under construction)②Shin Hankyu Building(under construction)③Dai Hanshin Building West Wing(businesses operating)④Dai Hanshin Building West Wing(under construction)⑤Phase I (businesses operating)After Phase I is over, the rentable area will be smaller than thepresent area (west wing of Dai Hanshin Building).

41

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas③

Revamped commercial facilities in Umeda and line-side areas【Outline】· The Group has been strategically revamping and reopening its commercial facilities to maintain orenhance their appeal. In fiscal 2018, we reopened three facilities in Umeda: Hankyu Sanban Gai
Shopping Centre, HERBIS Plaza, and HERBIS Plaza ENT.
· We will continue revamping our existing commercial facilities to economically invigorate the Umeda
and line-side areas.

【The new restaurant zone: UMEDA FOOD HALL】(We revamped and reopened the dining zone on the second basement level of the north wing of Hankyu
Sanban Gai Shopping Centre.)
Bar zone: A chic and modern space to enjoy drinks＜Re-opening date＞

and bar foodMarch 28, 2018

＜Outline of facility＞
Area： Approximately 2,300㎡
Capacity: Approximately 1,000 seats, Outlets:18

Stylish dining zone: This zone caters toyoung women, couples, and meet-ups formothers. The selection of food is as
visually stylish as it is delicious.

＜Concept＞· The newly revamped UMEDA FOOD HALL
will cater to visitors with diverse
gastronomic needs by providing selfservice dining solutions in a tasteful andrefined space.
· The food hall consists of five zones, eachdevoted to a different dining scene: bar,stylish dining, light refreshment, energyboosting food, and sweets.
· Visitors can select food, drink, or desserts
according to their mood and purpose on
the day and consume it in the zone theychoose.

Light refreshment zone: Perfect for
those who need a little pick-me-up
Energy-boosting food zone: A
selection of high energy foods

Sweets zone: Offers relaxation andrefreshment

42Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas④
In order of
opening date

Chayamachi 17-banchi project

Nishinomiya Kitaguchi Hankyu
Building (Provisional Name)
Construction Project

Extension of Ebista
Nishinomiya, a commercial
facility adjacent to Hanshin
Nishinomiya

Location

Chayamachi, Kita-ku, Osaka

Takamatsucho, Nishinomiya,
Hyogo Pref

Wajocho,Tanakacho,
Nishinomiya, Hyogo Pref

Site area

Approx. 440㎡

Approx. 3,000 ㎡

Approx. 5,700㎡（Extended area）

Total floor
space

Approx. 2,800㎡

Approx. 11,600 ㎡

Approx. 10,000㎡（Extended area）

Number offloors

8 floors above ground and 1 10 floors above ground and 1
3 floors above groundbelow groundbelow ground

Commercial facilities
PurposeScheduled
opening

Kwansei Gakuin University(global flagship store
Law School, commercial「MIZUNO OSAKA CHAYAMACHI」) facilities etc.

Commercial facilities

April 2018

Around autumn 2018

Around autumn 201843

Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas⑤
In order of
opening date

Fukushima 5-Chomeand 7-Chome joint
development project

Ebie 1-Chome
Development Plan

Project to relocate
Takarazuka Hotel

Plan site

Location

5-chome Fukushima,
Fukushima-ku, Osaka

1-chome Ebie, Fukushimaku, Osaka

1-chome Sakaemachi,
Takarazuka,Hyogo Pref

Site area

Approx. 2,600㎡(※)

Approx. 27,900㎡(※)

Approx. 12,300㎡

Total floor
space

Approx. 11,000㎡(※)

Number offloors

12 floors above ground and1 below ground

Approx. 52,200㎡(※)
Approx. 23,000㎡（condominium）
20 floors above ground
5 floors above ground and 1（condominium）
below groundNumber of units:566units(※)

Purposehotel(expected to be Hankyu
Hanshin Hotels-operated hotel),supermarket(expected to be
Hankyu Oasis)condominium(Geo Fukushima
Noda The Marks),
commercial facilities（land tolet）rooms (Approx. 200rooms)
party hall (4 halls)
restaurant (4 facilities)

Scheduled
opening

Around spring 2019

Around autumn 2019

Around spring 2020

(Scheduled time of condominium completion)※：Includes the portion belonging to our partner. 44Strategy①:Further strengthen the stock businesses in the Umeda and line-side areas⑥
In order of
opening date

Project to rebuild Kobe
Project to construct Saito Moegi
Hankyu Building’s east wingDistribution Centre (provisional name)and renew its west wing
A zoneB zoneLocationIn the Sanroku Line area of the eastern section of Ibaraki
City’s International Culture Park ‘Saito’

4-chome Kanocho, Chuo-ku, Kobe

Site area

A zone：Approx. 51,000㎡(※)
B zone：Approx. 16,000㎡(※)

Approx. 7,100㎡

Total floor
space

A zone：Approx. 125,000㎡(※)
B zone：Approx. 32,000㎡(※)

Approx. 33,300㎡

Number offloors

A zone：6 floors above groundB zone：4 floors above groundlogistics facilities

PurposeScheduled
opening

East wing：29 floors above ground and 3
below groundWest wing：1 floor under railway station(some sections with 2 floors above ground /basement level)（A zone：multitenant logistics facility［High-tech facilities designed to be used by multiple tenants］、
B zone：BTS logistics facility［Facilities built to suit a particular tenant’s specifications］）

hotel(expected to be Hankyu Hanshin
Hotels-operated hotel), offices, commercial
facilities, railway station

A zone：FY2022(scheduled completion)
B zone：FY2021(scheduled completion)

Around spring 2021
(scheduled completion)※：Includes the portion belonging to our partner. 45

Strategy②:Accumulate stock in the Tokyo metropolitan area and overseas markets①

Project to open remm+ Ginza【Project Outline】· In winter 2019, remm will open the first of its new brand of hotels, ‘remm+’, in Ginza, Tokyo.

(remm+） Building on remm’s existing brand concept, remm+ offers
an extra level of comfort and class.
◆Room size: 18 m2 double room (standard remm: 15 m2 single room)◆Bed width: 1,600 mm (standard remm: 1,400 mm) ◆Furnishings: Upgraded
Conceptual
illustration of
the building
exterior【Outline of facility】
Location

8-5-4 Ginza, Chuo-ku, Tokyo

Site area

Hotel portion:Approx. 8,200㎡

Floor
composition

Hotel portion 1st floor: lobby, 2nd ～15th floor: guest rooms

Number ofrooms

238rooms (double：154rooms , twin：84 rooms)【Plan for opening new-stylebusiness hotel location】【Location】

・Around spring, 2019：

Kyobashi, Tokyo［Please see page 47］
Ginza
stationPlan site

Sinbashistation・Around spring, 2019：
Fukushima, Osaka［Please see page 44］
・Around spring, 2021：
Kobe, Sannomiya［Please see page 45］46Strategy②:Accumulate stock in the Tokyo metropolitan area and overseas markets②
In order of
opening date

Location
Site area
Total floor
space

Kyobashi 2-6
Redevelopment Plan

Yotsuya Station
District Redevelopment
Project

Ginza 3-chome Project

2-chome Kyobashi, Chuo-ku, 1-chome Yotsuya, ShinjukuTokyoku, Tokyo
Approx. 1,450㎡(※)
Approx. 17,900㎡(※)

3-chome Ginza, Chuo-ku,
TokyoApprox. 310㎡

Approx. 17,000㎡(※)

Approx. 2,900㎡

Number of 14 floors above ground and 1
floorsbelow groundhotel(expected to be Hankyu
Hanshin Hotels-operated
Purposehotel), office, commercial
facilities
Scheduled Around spring 2019(scheduled completion)
opening

Approx. 139,600㎡(※)

31 floors above ground and 3 11 floors above ground and 1
below groundbelow groundoffice, commercial facilities,
residence, educationalcommercial facilities
services, public good, parking
Around early 2020

Around spring 2020

(scheduled completion)(scheduled completion)※：Includes the portion belonging to our partner.

47

Strategy③:Increase competitiveness of flow businesses①
Real estate sales business in domestic markets【Real estate sales[lands and housing] 】· Continue to develop and strengthen the urban detached house businessas a pillar of the residential real estate sales business.
· In addition to sales performance, make efforts to enable steady businessexpansion in the Tokyo metropolitan area.
· Focus long-term residential development efforts on Takarazuka Yamatedai［Hapia Garden［Hapia Garden
district and International Culture Park ‘Saito’.
Shinjuku Nakaochiai］
Mukogawa Soleil］【 Real estate sales[condominium] 】(Houses on sale from October 2017)(Scheduled to be Sold in March, 2019)· Continue to use strict criteria for selecting properties to acquire. Advance business steadily while carefully monitoring
the impacts of the consumption tax hike and the high level of construction expenses.
· In the Tokyo metropolitan area, strengthen the system for acquiring land and gradually expand business, bringing thenumber detached house sales to the level of those in the Kinki area (approximately 800 units a year).
· Leveraging existing planning and proposal capacities, engage additionally in medium-to-long term large-scale
projects (such as urban redevelopment projects).

Total number of units FY 2009
Number of units※1

916

FY 2010

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

1,064

680

1,210

1,548

1,356

1,374

1,302

1,087

1,159

FY 2019
forecasts
Approx.

1,150

Major properties sold in fiscal 2018※2
・Geo Tenroku Twin Towers (Kita-ku, Osaka）358units
・Geo Fukagawasumiyoshi (Koutou-ku, Tokyo) 190units
・Geo Yotsuya-arakicho (Shinjuku-ku, Tokyo) 131units

Major properties to be sold in fiscal 2019※2

・Geo Hankyu Minase Heart square (Mishima-gun,Osaka) 315units
・Geo Kyoto Katsuragawa（Minami-ku,Kyoto）98units［Geo Tenroku Twin Towers］ ［Geo Shinjuku-wakamatsucho］
・Geo Shinjuku-wakamatsucho (Shinjuku-ku, Tokyo)123units(Condominiums on sale from March 2018)(Scheduled to be sold in May 2018)※1：Figures include units in shared buildings that the Group partly owns.
※2：Figures indicate total number of units.

48

Strategy③:Increase competitiveness of flow businesses②
Real estate sales business in overseas markets· To help our real estate sales business achieve a certain level of profitability in overseas markets as
early as possible, we will accelerate efforts to promote our residential real estate sales business in
ASEAN states.
［Thailand］［タイ］〇Joint project by SENA Development
Public Co.
・Niche Mono Sukhumvit(condominium:Total 1,275 units)
・Niche Pride Taopoon Interchange(condominium:Total 742 units)
・Ekamai project (provisional name)(condominium:Total approx. 870 units)［Malaysia］〇Joint project by Ireka Co.
・RIMBUN KASIA project (provisional name)(condominium:Total approx. 850 units)［Vietnam］〇Joint project by NAM LONG INVESTMENT Co.
and Nishi-Nippon Railroad Co.
・FLORA-ANH DAO-(condominium:Total 500 units)
・FUJI RESIDENCE (condominium:Total 789units)(house:Total 84 units)
・FLORA -KIKYO- (condominium: Total 234 units)
・MIZUKI PARK
(condominium:Total approx. 4,670 units)(house:Total approx. 100 units)(townhouse:Total approx. 60 units)
・AKARI CITY
(condominium:Total approx. 4,620 units)［Indonesia］［インドネシア〇Joint project by Sinarmas Land Ltd. andothers・ Bumi Serpong Damai residential land lot
project(house, business loft :Total approx. 700 units)〇Joint project by Sumitomo Corporation
Co. and PT Sentul City Tbk.
・Sentul project(provisional name)(condominium:Total 1,095units)［Philippines］［〇Joint project by P.A. ALVAREZ PROPERTIESAND DEVELOPMENT Co.
・Ideshia Dasmariñas(house:Total 456 units)(townhouse:Total 463 units)49

Strategy③:Increase competitiveness of flow businesses③
Information services business· The market for the information services business is expected to expand significantly.
Accordingly, to help the business grow, we will make maximal use of our expertise andunique model to expand our market share and develop new business fields.

① Focus on promising fields


Fully leveraging our well-honed multi-vendor solutions※1 and one-stop services※2, we will
accelerate efforts to develop business in promising fields, such as building maintenance,transport systems, and Internet solutions, and thus increase our market share.
※1:This refers to our ability to combine products from different companies to create efficient systems.
※2:This refers to our spectrum of services from system development to operation/monitoring.

②Extend business operations in Kanto and Chubu area

Building on our track record of providing solutions in the Kansai area, we will step up efforts
to expand business in the Kanto area (a larger market) while also making inroads in the
Chubu area.

③Use cutting-edge technology to promote new businessesRegarding pioneering technologies like AI and IoT as opportunities, we will actively
incorporate technologies from outside (such as by partnering with venture businesses)
where we lack the necessary technologies ourselves, and use the technologies to develop
new solutions services.
50

Strategy③:Increase competitiveness of flow businesses④
Travel business· In the Travel Business segment, we have until now achieved steady earnings with a lineup centred on core brandtravel packages. However, recent changes in the environment (e.g. global instability, natural disasters, and thedeterioration in the travel product procurement environment associated with the rising numbers of overseas visitors
to Japan) are having a significant impact on business, and we expect that competition will intensify in the years
ahead.
· Accordingly, starting in fiscal 2018, we are reforming the business structure with the intention of further
strengthening our core brand travel packages and establishing alongside this a second pillar—future-oriented
business—as early as possible.

Never resting on our laurels, we will continue to embrace change andPrinciple improve our products even further to create travel products thatreflect customer feedback and ensure we are a company society needs.
Strengthen competitiveness of core
brand travel packages○Strengthen areas outside Europe
・Taiwan, America, Canada, Latin America, Domestic bus
tours○Strengthen Specialised products
・Tours specialise in specific purpose(cruise, oversea and domestic hiking tour, etc.)○Expand customer base among new
demographics
・Strengthen individual-oriented products○Revise cost structure for advertisingexpenses, etc.
・ Overhaul advertising expenditure rates

Establish a second pillar○Strengthen approach to nonJapanese tourists○Expand group and business travel
services and create stable source ofrevenue
・Group travel services：Strengthen services in the Tokyo metropolitan area
and increase the number of sales representatives

・Business travel services： Invest in human resources (train global workforce)and Strengthen digitization
51

Strategy③:Increase competitiveness of flow businesses⑤
International transportation business【 Basic strategy for achieving growth 】• Shift toward a more balanced business portfolio (strengthen ocean transportation and logistics operations)• Promote Asia-centred business development (shift away from the focus on Japan as origin/destination for shipments)• Expand investments in growing markets (e.g. Africa)

Capital tie-up / joint venture with Seino
Holdings （April 2018）

Under the joint venture, the two companies will augment each other’soperations in and out of Japan and thus provide new distribution
services to customers.
① Under the joint venture, Seino Holdings’ domestic distribution
network and logistics capacity will be combined with Hankyu Hanshin
Express (HEX)’s global distribution network digital, and the twocompanies will work together in digital information initiatives. In thisway, the venture will help deliver supply chain management solutions
tailored to each customer’s needs.
② It will also help develop and deliver new logistics services (customer
agency services related to ordering and trade settlement,
temperature-controlled transport, etc.)【Specific Initiative】
HEX will take out a lease on a warehouse space within Seino
Transportation’s new logistics centre nearby Narita International
Airport, and move there from its present location in Hankyu
Hanshin’s Narita Cargo Terminal (Shibayama, Sanbu District, Chiba
Prefecture) in the early summer of 2019. Because the new logistics
centre adjoins Seino Transportation’s truck terminal, it will help HEX
provide logistics services with reduced lead times for cargo
shipments and greater convenience. HEX will use the first floor of
the warehouse space to strengthen its logistics services.

基本方針

Warehouse space

Seino
Transportation’struck terminal

Location

Sanrizuka Narita Chiba

Warehouse
space
specifications（Total floor
space）

Ground floor：Cargo
handling area,
Refrigerator, Freezer（approx. 14,200㎡）
First floor：Logistics
warehouse（approx. 12,400㎡）

Investment in freight forwarder, Intraspeed
South Africa (Proprietary) Limited, and its
acquisition as a subsidiary （April 2018）
To capitalize on the long-term growth expected in Africa,
we intend to accelerate business in the continent andsecure a strong operating base there.
●The acquisition will serve as a bridgehead in the
African market from which we will aim to:① Expand our African networks② Offer solutions to Japanese companies with African
logistics needs while simultaneously expanding sales
channels among Intraspeed’s main clients (nonJapanese companies); this will produce a synergistic
effect※ The ground floor will serve as a cross-docking area
(i.e., for unloading materials from incoming vehicles andloading them onto outbound vehicles). The first floor
will be used in part as a logistics centre.

【Outline of investee】
Company
nameIntraspeed South Africa(Proprietary) Limited

Location

Johannesburg, South Africa

Establishment

February 1999

※ Following the investment, we acquired two other Africancompanies (one in Kenya and one in Uganda) owned by
Intraspeed.

52Strategy④:Make greater use of the Group’s collective energies and venture into new
business fields①

Credit and point card strategy
Develop S-POINT (a common point service for the Kansai area)•

In April 2016, the Group teamed up with H2O Retailing Corporation to launch SPOINT※1, a common point service for the Kansai area. Since then, we haveworked to expand S-POINT’s trading volume. Specifically, we are working tobuild S-POINT’s membership while expanding the number of S-POINT member
facilities—i.e., the number of Group and non-Group facilities that accept SPOINT.
※1 The main cards compatible with S-POINT are STACIA cards,
which come with optional credit card function and PiTaPa
function, and various point cards.

Now

Future target

Membership：
Approx. 7.5 million members

Membership：
Approx. 10million members【S-POINT service now accepted at 7-Eleven stores】※2 The six prefectures of Kansai are Osaka, Kyoto,
Hyogo, Shiga, Nara, and Wakayama.

・ On May 14, 2018, S-POINT started being accepted among the roughly 2,700 7Eleven convenience stores in the six prefectures of Kansai※2.
→Capitalizing on this development, we will further develop S-POINT until it becomes
indispensable to Kansai residents.

【STACIA card strategy 】＜Ongoing measures to develop STACIA card＞
Card to become the foremost card in line-side areas
・Increase the card’s use amount to the top level in the area

Get the card established as in-house card ・Increase card’s rate of usage among the Group53

Strategy④:Make greater use of the Group’s collective energies and venture into new
business fields②

Initiatives of new business fields【Safety initiatives(Mimamorume）】（End of March,2018）

Since its launch, the service has steadily increased subscriptions andit now has around 200 thousand subscribers. This success is partly
because of the high demand for child safety. Another reason is thatparents find it reassuring to know that, as a group involved in public
transportation, we are very community-minded.

School commute app (an email is automatically sent
when the student passes the school gate)
Number of schools that ordered app：1,088

Membership：201,479

Kindergarten attendance app (used to manage children’s safety and manage number of hours inkindergarten)
Number of kindergartens that ordered app：113

Safety monitoring app (the app uses a network of cameras, sensors, and parents/carers to track
the location of children or elderly people)
We launched the service in Itami and have now introduced it in three more municipalities: Nagaokakyo, Daito, andKakogawa. We plan to launch it in Kobe.

【Education initiatives（ProgLab）】
In April 2016, we launched an educational programme for robot programming (for seniors down to junior high school
students). We have started franchising the programme in the Tokyo metropolitan area.

Total number of students：approx. 2,100 (End of March,2018)
Directly run classes

12

In-school classes

6

Franchised classes

554Strategy④:Make greater use of the Group’s collective energies and venture into new
business fields③

Initiatives of raises line-side value【Private after-school day care centre】
To help parents who are bringing up children in areas served by our lines, we opened a private
after-school day care centre called After-school Kippo. Open three branches: in Toyonaka,
Nishinomiya-Kitaguchi (relocate in December 2018), and Ikeda
次世代育成～After-school Kippo provides another safe and fun place for kids after school～● Principle

After-school Kippo is a place of full of ‘safety and comfort’ as well as ‘dreams
and excitement’. It supports children who are taking their first steps and theirparents.

● Contents

Private after-school day care centre（We provide a diverse range of activities that utilise the Group’s network）【Comprehensive support for the elderly】
Open members-only community centres for active seniors in Takarazuka,
Shukugawa, and Minoh to help increase the healthy life expectancy of elderly
residents in line-side areas.

● Principle

Help elderly residents enjoy their ‘second life’ with vigour, health,and peace of mind.

● Contents

The centre provides a lively space for elderly residents, and it
also acts as a one-stop shop※ delivering comfort and conveniencein daily life.
※ The centre hosts cultural classes and events, and as aconsultation facility, it can connect members withhousecleaning services and caregivers, etc.

55

Strategy④:Make greater use of the Group’s collective energies and venture into new
business fields④

Initiatives of raises line-side value【Hanshin Ikiiki Day Service】● Contents

Day service (half-day recuperative service) run by Iki-Iki Life Hankyu Hanshin (founded inAugust 2017; succeeded business from Hanshin Electric Railway in November 2017)● Principle
次世代育成

Focusing on both the body and the mind, we help residents to continue living healthy andvibrant lives in the places to which they are accustomed● Locations (April 1,2018)
14 along the Hankyu and Hanshin lines (approximately 1,000 individuals have signed up
for the service). New location scheduled to open in fiscal 2019 in multipurpose facility in
Higashiyodogawa-ku (Awaji)【Health and Elderly】

Health education, preventive healthcare
services○Quarterly health journal deposited in stations 「Well TOKK」○WEB site「Hankyu Hanshin line Wellness plus」
Publish information about healthpromotion events and medical
screenings in line-side areas (26municipalities across 3 prefectures)○Work with the Research Complex※ topromote efforts to help prevent lifestyle-relateddiseases or prevent them worsening※The Research Complex is a Japan Science and Technology
Agency-funded project (November,2015-March,2020)
Project members: Approximately 100 institutes, including
Riken, Kobe City, Hyogo Prefecture, Kyoto University, Kobe
University, Hankyu Hanshin Holdings ,and SMBC

Develop multipurpose facilities thatfunction as fee-based elderly carehomes and facilities for local
residents
Using the idle land in the Awaji area ofHigashiyodogawa-ku, we will lease a building to Charm
Care Corporation. The tenant facilities for local
residents will include Hanshin Ikiiki Day Service. There
will also be a health centre and café to help stimulate
community activities. (construction to be completed inautumn 2018)

56

Initiatives of ESG(Environment, Social, Governance)①
Environment
In line with our Basic Environmental Policy, we have constructed an environmental management
system to mitigate environmental risks and promote each group company’s environmental
preservation activities, thereby spreading awareness among our stakeholders.

Upholding environmental laws

Environmental management

We conduct various surveys on environmental
laws to minimise the risk of legal oversights
and to raise the level of compliance withenvironmental laws across the Group.
① Survey to check compliance withenvironmental laws
→ To check whether group companies are
upholding environmental laws, we
conduct annual questionnaire surveys
with each company.
② Separate surveys→ For each survey, we identify
major issues. For example, we checkthe company’s progress in disposing of
PCB waste, which has a legally
mandated time limit for disposal.

Mitigating burden on environment
In accordance with the Energy Saving Act, we strive torationalise energy use throughout the Group.
＜Progress in reducing Group-wide energy consumption＞
With fiscal 2013 scaled at 100%

FY2014FY2015FY2016FY2017

99.0%

96.4%

94.3%

92.8%

Raising awareness among employees
To promote awareness about environmental preservation,
we convey to our employees the facts they need to promote
environmental preservation and inform them about social
trends in relation to environmental activism.
→ Organise seminars for checking compliance withenvironmental laws, establish a month for stepping up
environmental efforts, raise awareness through Grouppublications

Outside PR

Each group company uses various advertising strategies to raise publicawareness about their environmental preservation activities.
→ In-train posters, company website, booth at Lohas Festa＜ In-train posters ＞

57

Initiatives of ESG(Environment, Social, Governance)②
Environment【Examples of the Group’s initiatives to reduce burden
on environment】〈Urban Transportation〉○Carbon-neutral station: Settsu-shi Station
・Opened on 14 March 2010 on the Hankyu Kyoto Line, Settsu-shi Station is Japan’s first carbon-neutral (netzero carbon footprint) station.
・The station uses solar panels, LED lighting, and other eco-friendly measures to reduce its carbon emissions toaround half that of regular stations. It offsets the remaining carbon emissions by purchasing forest carbon offset.

〈Real Estate〉○Environmental / energy-saving initiatives in commercial facilities（Umeda Hankyu Building）
・ To control lighting load, the building uses LED high-efficiency lighting and controls light levels
with brightness sensors. To save energy further, it also uses high-efficiency heat sources andinverter-controlled devices.
・The building achieved S-rank—the highest rank in CASBEE Osaka (Osaka City’s system for rating
the environmental performance of buildings and the built environment).

(Umeda 1-1 Project)・Under the Ministry of Land, Infrastructure, Transport and Tourism’s programme for promoting‘pioneering projects for sustainable buildings (carbon-cutting)’, the project was selected in December
2015 in recognition of how it raises awareness of pioneering technologies for saving energy and cutting
carbon emissions.

〈Entertainment and Communications〉○Solar power
・Solar cells were installed on Hanshin Koshien Stadium’s Ginsan roof and put into operationin March 2010.
・In fiscal 2018, the solar cells generated enough energy to supply a year’s worth offloodlighting for night matches.
58

Initiatives of ESG(Environment, Social, Governance)③SocialGroup-wide social contribution activity: Hankyu Hanshin Dreams andCommunities of the Future Project (since fiscal 2010)
・To build customer loyalty and enhance value over the long-term, we are working on collaborative
projects with group companies, citizen groups, and group employee in accordance with the following
policy.
【Policy】 Promote the creation of towns and cities along our railway lines that people will truly wantto live in.
【Priority areas】 Environmentally friendly development that enhances the appeal of line-side
communities—the most important foundation of our businesses
Human capital development aimed at fostering the next generation of customers＜Progress of collaborative projects (as of fiscal 2018)＞① Collaboration with groupcompanies
Promote charity in Group
using certification system②Collaboration with citizen
groups｢Hankyu Hanshin
Community Future Fund｣③Collaboration with group
employees
Charity point system

Hankyu Hanshin Holdings(HHHD) uses advertising,co-sponsorship, and an
employee matching gift
programme to promotecharity among groupcompanies

HHHD’s matching gift
programme supports
the work of citizen
groups along our lines

We encourage current
and former employees
to participate incharitable fundraisingby granting points fortheir participation■Certified charitable activities as of fiscal 2018: 92 activities
Reference<Number of activities>
FY2014:83, FY2015:89, FY2016:91, FY2017:94■Elementary student-oriented programme ‘Challenge Corps’
accommodated a record 2,628 kids
■As many as 90 certified activities in fiscal 2019 (more to becertified during period)■In fiscal 2018, we provided a total of ¥8.8 million to 16 of the 66
groups that applied.
■We encourage employees to sign up for charitable payroll
deductions through promotional campaigns and by issuing requests
during training
Number signed up:69 companies 1,352employees (YoY ＋41)
※At the end of December, 2017
Total amount raised: 97 groups ¥49.5million■Charity points system’s results
Number signed up: 71 companies 2,253 employees (YoY＋181)
Points granted: 15,281points ※ January–December 2017
■ Amount that employees raised for the charitable organisations:¥1 million for 43 organisations

59

Initiatives of ESG(Environment, Social, Governance)④Social＜Hankyu Hanshin Holdings wins the METI Minister’s Award(Grand Prix)※ at the Eighth Career Education Awards＞
At the Eighth Career Education Awards, we won the METI Minister’s Award (GrandPrix) for two of our educational programmes for elementary students: the summer
programme ‘Hankyu Hanshin Yume Machi Challenge Corps’ and extra-curricular
programme ‘Yume Machi Waku-Waku Work Programme’.

※The Grand Prix is the highest of the awards. We are the first railway enterprise to winit.

Hankyu Hanshin Yume Machi Challenge Corps

Yume Machi Waku-Waku Work Programme

・In this summer programme, children encounter ourGroup’s business operations and facilities, and interact withthe staff. In this way, they experience many different types
of work conducted across the Group.
・Started in fiscal 2011, the programme has accommodated
a cumulative total of over 12 thousand children in
cumulative 265 programmes as of fiscal 2018.

・To contribute to career education, managers from Hankyu
Corporation (HC) visit elementary schools and deliver a lesson.
・Since fiscal 2017, managers have delivered lessons about thecommunity-building initiatives of HC’s founder, Ichizo Kobayashi,
and the various work the company does in the community. The
programme has so far prompted approximately 6,000 children in
72 schools to think about their future careers.

We will continue to play our part in educating the next generation.
60

Initiatives of ESG(Environment, Social, Governance)⑤Social【Employee health management】■Formulate and announce the Hankyu Hanshin Holdings Group’s
Declaration on Employee Health Management (April 26,2018)
・Respect for people is a cornerstone of the Group’s corporate philosophy. The health of our employees and theirfamilies is fundamental to achieving an abundant future for the Group. The declaration on health management
expresses our view of employee health management—whereby we safeguard and promote the health and safetyof employees and their families. It also underscores our commitment to making each employee more healthconscious and promoting a healthy workplace.
・Health management applies across the Group; from now on, each group company will take steps to promote thehealth of employees and their families pursuant to the declaration.

“the Hankyu Hanshin Holdings Group’s Declaration on Employee Health Management”
We understand the importance of the physical and mental health of our employees and their families. It is the sourceof their wellbeing, and it is fundamental to achieving an abundant future for the Group. To deliver safety and comfort
while also offering dreams and excitement, it is paramount that our employees are healthy and that they can betheir authentic selves and make the most of their abilities.
To this end, employees themselves must raise their health-consciousness and promote the health of each other andtheir family members.
Under the Hankyu Hanshin Wellness Challenge slogan, we hereby commit ourselves to safeguarding and promoting
the health and well-being of all employees and to developing a healthy and motivated workplace environment.
April,2018
Takehiro Sugiyama
President & Representative Director, Officer in Charge of Health Management
Hankyu Hanshin Holdings, Inc.

61

Initiatives of ESG(Environment, Social, Governance)⑥
Governance【Group-wide initiatives for improving governance】■Established the Corporate Governance President Committee (fiscal 2016 ～)・Meets twice a year to discuss matters such as ensuring transparency in executive appointments and remuneration,communicating with outside directors, etc.

■Started evaluating the effectiveness of the Board of Directors (fiscal 2017～)
・The management of the Board of Directors is reviewed once a year; directors are interviewed about whether there issufficient board accountability, whether board proceedings are appropriate, etc.
⇒The reviews have found the management to be generally appropriate. However, the reviews also suggest that
directors should provide more information about business issues, so we are taking steps accordingly.

■Overhauled board composition（fiscal 2018）
・ With the aim of strengthening the board’s monitoring function, we
reduced the number of directors so as to increase the proportion＜Proportion of outside members to total membersof outside directors.
(Board of Directors and Audit & Supervisory Board)＞✓ Directors reduced from 14 to 9
fiscal 2017
fiscal 2018
✓ Appointed 2 outside directors with extensive business experience・ Audit & Supervisory Board (5 members) now include 3 members within-depth professional expertise.
5members/
5members/
・ Introduced an executive committee system to streamline business execution.
19members
14members
26.3％
35.7％
■ Scrapped the corporate adviser system （fiscal 2018）
・We removed stipulations on selecting corporate advisers to increase corporatetransparency and thus strengthen corporate governance (also because wehave in effect stopped selecting them)■Resolved to discontinue anti-takeover measures（fiscal 2019）
・The existing anti-takeover measures will expire upon the close of the 2018 General Meeting of Shareholders. We
resolved against renewing the measures in view of changes in the business climate.

62

Ⅳ. Forecast for fiscal 2019 (fiscal year ending
31st March 2019) and outlook for eachbusiness segment

63

Consolidated Statements of Income (Summary)(¥ billion)

FY2019Forecasts

FY2018Results

ChangeRemarks

Earnings will increase withthe railway business’s
transportation revenue from
Hankyu and Hanshin lines
and the real estatebusiness’s sale of land forcommercial facilities

Revenues from operations

790.0

760.3

+29.7(+3.9%)

Operating income

110.0

105.2

+4.8(+4.6%)

Ordinary income

107.0

103.8

+3.2(+3.1%)

70.0

66.4

+3.6(+5.5%)

Depreciation and amortisation

55.8

53.3

+2.5

Financial balance ① - ②

-8.7

-8.7

+0.0

Interest and dividend income①

1.3

1.3

-0.0

Interest expense②

10.0

10.1

-0.1

Net income attributable toowners of the parent(Reference)64Consolidated Statements of Income (Breakdown for each business segment)(¥ billion)[Upper table]
Revenues from operations[Lower table]
Operating income

Total

FY2019Forecasts

FY2018Results

Change

790.0

760.3

+29.7

110.0

105.2

+4.8

241.7

236.0

+5.7

42.9

41.6

+1.3

236.2

222.6

+13.6

48.0

41.0

+7.0

124.5

121.1

+3.4

16.7

17.8

-1.1

34.8

34.0

+0.8

1.3

2.1

-0.8

83.6

83.7

-0.1

2.2

2.8

-0.6

66.4

67.2

-0.8

2.1

2.2

-0.1

Remarks(Breakdown for each business segment)

Urban
Transportation
Real EstateEntertainment andCommunications
TravelInternational
Transportation
Hotels

Earnings will increase with transportation revenue from Hankyu
and Hanshin lines, which will offset an increase in depreciation
and amortisation related to investment in rolling stock.
Earnings will increase with the sale of land for commercial
facilities and strong performance of rental buildings in the Umeda
area and elsewhere.
Despite higher revenue from the communications and media
business, earnings will decline because the Takarazuka Revue’s
performance falls short of the high level it achieved in fiscal 2018.
Earnings will decline due to a rise in various expenses, which willoffset the expected increase in overseas and domestic tourists.
Earnings will decline because, despite higher handling volume inocean transport, performance will fall short of the level in fiscal
2018, which saw strong air transport. Expenses will be anotherfactor.

Earnings will be negatively affected by the termination of a hotelmanagement contract in fiscal 2018 and increased repair
expenditure, but will stay at the level of fiscal 2018 because of ahigher ADR.

65

Urban Transportation
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2018 to FY2019
・Higher railway operation revenue accompanying
an increase in line-side population
・Lower power costs
・Higher depreciation and amortisationaccompanying investment in the manufacture ofrolling stock We anticipate that railway operation revenue willrise as a result of an increase in line-side
population and inbound demand.

(¥ billion)

Revenues from operations
Operating income

233.4

38.6

239.5

237.1

236.0

241.7

41.3

42.2

41.6

42.9

 As for expenses, while power costs are lower,
we anticipate higher depreciation andamortisation reflecting the investment in rollingstock and station apparatus.
 As a result of the above, in fiscal 2019, the corebusiness as a whole is projected to record anincrease in operating income.
 Regarding the outlook for fiscal 2022, while
depreciation and amortisation is set to risesignificantly, we expect that railway operation
revenue will benefit from higher inbounddemand. Therefore, operating income in fiscal
2022 is projected to surpass the fiscal 2018
level.

FY2015FY2016 FY2017

FY2018 FY2019
forecasts

66

[Urban Transportation] Railway Performance results
Hankyu Corporation

Fare revenues (¥ million)*
FY2019Forecasts

FY2018Results

ChangePassenger volumes (Thousands)*
FY2019Forecasts

FY2018Results

ChangeCommuter pass

33,74333,198+545(+1.6%)

339,360

335,005 +4,355(+1.3%)

Workers

29,23028,690+540(+1.9%)

239,111234,816 +4,294(+1.8%)

Students

4,512

4,507

+4(+0.1%)

100,249

100,189

Other tickets

63,93063,137+792(+1.3%)

324,150

319,939 +4,210(+1.3%)

Total

97,673

96,335 +1,337(+1.4%)

663,511654,945 +8,565(+1.3%)+60(+0.1%)

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2019Forecasts

FY2018Results

ChangePassenger volumes (Thousands)*
FY2019Forecasts

FY2018Results

ChangeCommuter pass

12,041

11,797+243(+2.1%)

124,417122,073 +2,343(+1.9%)

Workers

10,807

10,576+230(+2.2%)

98,44496,401 +2,042(+2.1%)

Students

1,234

1,221

+13(+1.1%)

25,97325,672Other tickets

22,13021,638+492(+2.3%)

122,369

119,567 +2,801(+2.3%)

Total

34,17233,436+736(+2.2%)

246,786

241,641 +5,144(+2.1%)+300(+1.2%)＊ Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway.

67

[Urban Transportation] Referential information
Hankyu Line: Transportation revenue (tier 1 + tier 2)

Commuter passes
Other tickets
Total(¥ million)
FY2019FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY201831,88060,08791,967

31,126
58,582
89,70829,48460,00089,48529,92260,26890,19130,39160,74991,141

31,29961,63092,92931,54960,91092,45932,272
62,92095,192

32,62862,72095,34833,19863,137
96,335

FY2009＝100％(FY) 20092010

forecasts

33,74363,93097,673

106%

2011

2012

2013

2014

2015

2016

2017

2018

2019

forecasts

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

FY2019FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018

8,913
16,31625,2309,642
18,39628,038

10,126
18,89929,025

10,623
19,42230,045

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

11,107
20,286
31,394

11,372
21,03532,407

11,563
21,13632,699

11,797
21,63833,436

forecasts

12,041
22,13034,172135%

FY2009＝100％★ Opening of Hanshin Namba Line(March, 2009）(FY) 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

forecasts

68Real EstateBlue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2018 to FY2019
・Sale of land for commercial facilities in the easternsection of International Culture Park ‘Saito’
・Lower gross profit and higher sales expenses incondominium business In the leasing business, depreciation and amortisation is
set to rise as we proceed with the Umeda 1-1 Project.
However, earnings are expected to increase with higher
fare revenues and ongoing high occupancy rates.
Earnings will also benefit from efforts to improve theappeal of commercial facilities by attracting new tenants
and revamping the facilities.
 The real estate sales business will be negatively affectedby lower gross profit and higher sales expenses in thecondominium business, but earnings will increase
because of the sale of land for commercial property.
 As a result of the above, in fiscal 2019, the core businessas a whole is projected to record an increase in operating
income.
 Regarding the outlook for fiscal 2022, with increased
earnings from real estate leasing and real estate sales,
operating income is projected to surpass the fiscal 2018
level.

(¥ billion)
Revenues from operations
Operating income

220.9
206.4

215.7

236.2
222.6

49.9

48.0

42.0

41.0

FY2017FY201837.2

FY2015FY2016FY2019forecasts

69

Entertainment and Communications
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2018 to FY2019
・ Decline in the stage’s level of capacity utilisation
 In the sports business, Hanshin Tigers Baseball Club’s
efforts to maintain the audience levels of fiscal 2018
are expected to yield to stable earnings.
 In the stage business, the stage’s capacity utilisation
will decline from its high level, and there will be lower
sales of related merchandise. Therefore, we anticipate
that earnings will decline from the fiscal 2018 level.
 The communication and media business will benefit
from efforts to sustainably develop the information
services business and promote local broadband
wireless access.
 As a result of the above, in fiscal 2019, the corebusiness as a whole is projected to record a decreasein operating income.
 Regarding the outlook for fiscal 2022, with increased
earnings from information services business, the corebusiness as a whole will aim for the same level ofoperating income as in fiscal 2018, both of sports andstage business achieved high level of earnings.

(¥ billion)
Revenues from operations
Operating income

112.6

112.5

115.2

121.1

17.8
15.0

15.3

FY2015FY201615.7

FY2017 FY2018

124.5

16.7

FY2019forecasts

70

TravelBlue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2018 to FY2019
・Higher costs associated with structural reform
・Higher demand for travel to overseas regions
other than Europe
In fiscal 2019, the overseas travel business will
benefit from an expected increase in tourism inareas outside Europe, but earnings will decrease
because of expenses.
Regarding the outlook for fiscal 2022, over theperiod of the plan, we will strengthen thecompetitiveness of core brand travel packages
while establishing a second pillar (see p.51).
As a result of these efforts, in fiscal 2022,
operating income is projected to be at the samelevel of operating income as in fiscal 2018.

(¥ billion)

Revenues from operations
Operating income

32.0

34.0
30.5

34.8

29.9

2.1
1.3

1.2
0.7

FY2015 FY2016

0.6

FY2017 FY2018

FY2019forecasts

71

[Travel] Referential information
Billings
Domestic travel

Overseas travel(¥ billion)

450.0
400.0

132.4

350.0
300.0

137.4

135.5

128.5

111.9

146.3

136.8
132.5

250.0

129.0

136.1

200.0
150.0
100.0

246.3

245.3

255.3

270.9

290.1

261.6

234.7

201.1

186.9

FY2016FY2017

206.6

50.0
0.0
FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2018※Figures for fiscal 2009 to fiscal 2015 represent the simple aggregate amounts from Hankyu Travel
International and Hankyu Hanshin Business Travel.
The figures from fiscal 2016 and onwards represent the aggregate amounts from the two companies
as well as from Hanshin Travel International (offsetting intercompany transactions).

72International Transportation
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income
from FY2018 to FY2019
・Decline in air transport handling volume fromthe previous year’s high level・Higher handling volume in ocean transport andlogistics

 Fiscal 2019 will see higher handling volume inocean transport and logistics, but earnings will
decrease because of a decline in air transport
handling volume from the previous year’s highlevel coupled with higher expenses.
 Regarding the outlook for fiscal 2022, the corebusiness will aim for steady growth over theperiod of the plan by developing the airtransport, ocean transport, and logistics
businesses in a well-balanced manner as well as
by producing a synergistic effect with Seino
Holdings.
 As a result of these efforts, in fiscal 2022,
operating income is projected to surpass the
fiscal 2018 level.

Revenues from operations
Operating income

76.1(37.7)(¥ billion)

83.7

83.6

71.7

【Reference】(39.4) Figures in parentheses
indicate net amounts.

3.1

2.8
2.2
1.8

FY2015 FY2016

1.6

FY2017 FY2018

FY2019forecasts＊ As of fiscal 2017, the presentation of revenues from operations of the International
Transportation Business has changed from net to gross amounts.

73

[International Transportation] Referential information【Total handling volume for Japanese and non-Japanese companies in the International Transportation Business segment】

160
140

Air Export Freight Weight（unit：thousand ton）

143

120

141

128
121

117

115

FY2012FY2013

FY2014115

121

FY2016FY2017

100
80
60
40
20
0

FY2011
120

TEU※-measured overseas export volume

100
80

FY201574

76

79

FY2011FY2012FY2013

FY2018（unit：thousand TEU）

92

98

95

FY2014FY2015FY2016103

111

FY2017FY201860
40
200※TEU：‘Twenty-foot equivalent unit’—a unit of cargo capacity based on the volume of
a 20-foot-long container

74Hotels
Blue : Factors of increase

Red : Factors of decrease

Main factors in the change in operating income from
FY2018 to FY2019
・Higher revenue among existing hotels, primarily
from accommodation operations
・Higher repair expenses accompanying renovation

 Revenues from operations is set to decline
following the termination of the Rokkosan Hotelmanagement contract in fiscal 2018 and anumber of hotel closures in fiscal 2019.

Revenues from operations

68.0

67.2

65.6

66.4

63.0
3.3
2.8

 We also anticipate higher repair expenses
accompanying facility renovations and higher
outsourcing costs following an overhaul ofcleaning prices.
 Operating income, on the other hand, willremain at the same level in fiscal 2019 in viewof higher ADR.
 Regarding the outlook for fiscal 2022, with theimpact of opening new hotels and higher ADR
among existing hotels, operating income is
projected to surpass the fiscal 2018 level.

(¥ billion)

Operating income

2.2

2.1

FY2018FY20191.2

FY2015FY2016FY2017

forecasts

75

Average daily rates (ADR) and occupancy rates of Hankyu Hanshin Hotels in the Tokyo metropolitan area and Kinki area
21,000Tokyo metropolitan area ADR ※1
Tokyo metropolitan area occupancy rate(right axis) ※1
83.3%

18,000
82.4%

89.7%
83.7%

89.9%

79.7%

92.2%

92.6%

83.3%

86.6%

15,00012,00014,287

14,046

13,52014,288

Kinki area ADR ※2
Kinki area occupancy rate（right axis） ※2
92.2%

93.9%

94.3%

88.6%

90.5%

90.8%

6,000
（¥）

9,859

FY20109,489
FY20119,407

FY2012

16,66515,853

15,2109,521

FY2013

10.0%

60.0%

FY2014

40.0%
20.0%

FY2015FY2016FY2017

38.6%

38.1%

36.9%

37.0%

FY20180.0%（％）

Kinki area ※2

31.4%

30.0%
20.0%

15,44913,54910,210

40.0%

16.4%

80.0%

14,140Tokyo metropolitan area ※1

16.3%

88.7%

14,619Non-Japanese guests as a percentage of overnight-stay guests

50.0%

100.0%

17,221

11,616
9,000

95.4%

42.3%

40.6%

22.7%
13.1%

11.7%

12.7%

10.0%

FY2010FY2011FY2012

25.0%

14.9%
12.3%

The total figures for FY2018 is 41.2％(+3.9 points from previous year)

17.3%

0.0%
FY2013

FY2014FY2015FY2016FY2017FY2018※1 Directly managed Hanshin Hankyu hotels, hotels in the Tokyo area (excluding HOTEL new HANKYU TOKYO,. including remm Roppongi, which opened in
March 2017)※2 Directly managed Hanshin Hankyu hotels, hotels in the Kinki area (including remm Shin-Osaka, which opened in September 2012)76

《Reference》 Consolidated Statements of capital expenditure(¥ billion)

FY2019Forecasts

Total capital expenditure

Remarks

FY2018Results

①

②

108.7

86.4

Remarks

Change①-②+22.3(Breakdown for each business segment)

Urban Transportation

Building of new rolling stock andimprovement of existing rollingstock, Renewal of station
39.3 apparatus, upgrade of Hanshin
Umeda Station, Installation ofmobile platform edge doors

Real Estate

Umeda 1-1 Project, Project torelocate Takarazuka Hotel,
Nishinomiya Kitaguchi Hankyu
Building (Provisional Name)
47.3 Construction Project, Kyobashi
2-6 Redevelopment Plan, Project
to rebuild Kobe Hankyu Building’s
east wing

Building of new rolling stock
and improvement of existingrolling stock, upgrade of
35.0 Hanshin Umeda Station,
Installation of mobile platform
edge doors
Umeda 1-1 Project, Renewalof Hankyu Sanban Gai
Shopping Centre, Kyobashi
39.9 2-6 Redevelopment Plan,
Project to rebuild Kobe
Hankyu Building’s east wing

+4.3

+7.4

Entertainment and Communications

Broadcast and communications,renewal of transition lines of main
9.9 lines, Increase base stations for
local broadband wireless access

7.6 communications, renewal of+2.3

Travel

1.2

0.5

+0.7

International Transportation

1.5

0.7

+0.8

Hotels

2.5

2.3

+0.2

Broadcast andtransition lines of main lines77

《Reference》 Consolidated Statements of Depreciation and amortisation, EBITDA(¥ billion)
Total Depreciation and amortisation

FY2019forecasts①

FY2018results②

Change
①-②

55.8

53.3

+2.5

Urban Transportation

28.5

26.7

+1.8

Real Estate

17.1

16.5

+0.6

Entertainment and Communications

7.3

6.8

+0.5

Travel

0.7

0.7

+0.0

International Transportation

0.6

0.7

-0.1

Hotels

2.2

2.1

+0.1

168.0

160.8

+7.2

Urban Transportation

71.4

68.2

+3.2

Real Estate

65.1

57.5

+7.6

Entertainment and Communications

24.0

24.6

-0.6

Travel

2.0

2.7

-0.7

International Transportation

2.8

3.4

-0.6

Hotels

4.3

4.3

-0.0

(Breakdown for each business segment)

Total EBITDA(Breakdown for each business segment)78

Ⅴ. Referential Materials

79Consolidated Subsidiaries(As of April 1, 2018)
Urban Transportation
Railway
Hankyu Corporation
operations
Hanshin Electric Railway
Nose Electric Railway
Kita-Osaka Kyuko Railway
Hokushin Kyuko Railway
Kobe Rapid Transit Railway
Hankyu Hanshin Electric System
Hankyu Railway Service
Automobile
Hankyu Bus
Hanshin Bus
Hankyu Kanko Bus
Hankyu Denen Bus
Osaka Airport Transport
Hankyu Taxi
Hanshin Taxi
Osaka Hanshin Taxi
Hankyu Hanshin Motor Technology
Hankyu Driving School Hattori Ryokuchi

Haks Hanshin
Retailing
Advertising
Other

Eki Retail Service Hankyu Hanshin

Hankyu Style Labels
Hankyu Advertising Agency
Alna Sharyo
Hankyu Sekkei Consultant
Hanshin Station Net
Hanshin Sharyo MaintenanceReal Estate
Real estate

Hankyu Hanshin Properties
leasing and sales Hankyu Corporation
Hanshin Electric Railway
Hankyu Hanshin Estate Service
Osaka Diamond Chikagai
Hankyu Hanshin Building Management
Other
Hankyu Hanshin High Security Service

Hankyu Hanshin Clean Service
Hankyu Hanshin REIT Asset Management
Hankyu Hanshin Real Estate Investment Advisors

Hankyu Hanshin Housing Support

KyokutoEntertainment and Communications
SportsHanshin Electric Railway
Hanshin Tigers Baseball Club
Hanshin Contents Link Corporation

Wellness Hanshin
P & P Hamamatsu
Stage
Hankyu Corporation
Takarazuka Creative Arts
Takarazuka Stage
Umeda Arts TheaterCommunication Bay Communications
and media Hanshin Cable Engineering
Leisure, etc.
Itec Hankyu Hanshin
System Giken
Mt. Rokko Cable Car & Tourism
YMIRLINK
Himeji Cable Television
RworksTravelTravel agency

Hankyu Travel International
Hankyu Hanshin Business Travel
Hankyu Travel Support
Hanshin Travel International
International Transportation
International
Hankyu Hanshin Express
transportation Hankyu Hanshin Logipartners
HANKYU HANSHIN EXPRESS(USA, UK, NETHERLANDS, SINGAPORE
DEUTSCHLAND,HONG KONG,
THAILAND,PHILIPPINES, MALAYSIA,VIETNAM,SHANGHAI,GUANGZHOU,BEIJING,TAIWAN, KOREA,INDIA,
INDONESIA, Southeast Asia, HANKYU
INTERNATIONAL LOGISTICS SHANGHAI,:19Companies）
HotelsHotel
Hankyu Hanshin Hotels
management Hanshin Hotel Systems
Hankyu Hanshin Restaurants
Arima View Hotel
Amanohashidate Hotel
Kure Hankyu Hotel【Legend】
Name of segment
Name of
Name of consolidated subsidiary(Only listed companies that are
sub-segment
managed as segment)

80

Revenues from Operations and operating income as a FY2018
management composition

earnings structure(As of April 1, 2018)

Hankyu Hanshin Holdings
HotelsInternational
Transportation

TravelHanshin Electric
Railway※

Real EstateEntertainment andCommunications

Urban
Transportation

HankyuCorporation※ The Urban Transportation and Real Estate businesses

generate stable cash flows and account for
approximately 60% of revenues from operations and
80% of operating income.
Revenues from operations breakdown(FY2018)
Consolidated Total

Operations¥760.3billion

Operating Income¥105.2billion

Operating income margin

Hotels
Revenues from

Revenues from Operations

Urban Transportation¥67.2billion

Operating Income¥2.2billion

Operating income
margin3.3%

International
Transportation
Hankyu Hankyu
TravelHanshin
Properties International

HankyuHanshin
Express

HankyuHanshinHotels

Revenues fromoperations¥83.7billion

Operating income¥2.8billion

Operating income
margin3.3%※ In the Umeda and line-side areas, Hankyu
Corporation and Hanshin Electric Railway will retain
their real estate for leasing and developing and workwith Hankyu Hanshin Properties to promote community
building efforts in connection with public transport
networks and local governments.

¥34.0billion

Operating Income¥2.1billion

Operating income
margin

6.2%

Revenues fromOperations¥236.0billion

Operating Income¥41.6billion

Operating income
margin17.6%

Real Estate

TravelRevenues fromOperations

13.8%

Revenues fromOperations¥222.6billion

Operating Income¥41.0billion

Operating income
margin18.4%

Entertainment & Communications
Revenues fromOperations¥121.1billion

Operating Income¥17.8billion

Operating income
margin14.7%

81

Areas served by the Hankyu and Hanshin lines①
Definition of the areas served by the Hankyu and Hanshin lines
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, Settsu cities and Shimamoto town
Hyogo Prefecture:
Kobe City (Higashi-Nada, Nada, Hyogo, Nagata and Chuo, out of a total of 9 wards); andAmagasaki, Nishinomiya, Ashiya, Itami, Takarazuka and Kawanishi cities
Kyoto Prefecture:
Kyoto City (Nakagyo, Shimogyo, Ukyo, Nishikyo, out of a total of 11 wards); and Muko andNagaokakyo cities and Oyamazaki town

82

Areas served by the Hankyu and Hanshin lines②
Population Trends

Sources: Prepared by the Company based on data from “Local Economy Directory,” published by Toyo Keizai, Inc.,and “Basic Resident Register,” published by the Ministry of Internal Affairs and Communications.
（k㎡） (thousand)
Area

Population

Areas served by the Hankyu/Hanshin
line

1,318

5,599

Osaka Pref. (service areas)

449

2,661

Hyogo Pref. (service areas)

471

2,270

Kyoto Pref. (service areas)

398

668

Non-Hankyu/Hanshin Service Areas

26,033

14,812

Osaka Pref. (non-service areas)

1,456

5,986

Hyogo Pref. (non-service areas

7,930

3,236

Kyoto Pref. (non-service areas)

4,214

1,847

Shiga Pref.

4,017

1,395

Nara Pref.

3,691

1,369

Wakayama Pref.

4,725

979

27,351

20,411

Total

108.0
106.0
104.0
（1991=100）（1991=100）

102.0
100.0
98.0
96.0

Survey of prospective condominium purchasers regarding
their preferred Kansai residential area
Ranking Station（Area）

Ranking Station（Area）

11

Ashiya（Ashiya, Hyogo Pref.）1

Nishinomiya-kitaguchi（Nishinomiya, Hyogo Pref.）2

Shukugawa（Nishinomiya, Hyogo Pref.）12

Toyonaka（Toyonaka, Osaka Pref.）3

Okamoto（Kobe, Hyogo Pref.）13

Kuraku-enguchi（Nishinomiya, Hyogo Pref.）

4

Umeda

（Osaka, Osaka Pref.）14

Fukushima（Osaka, Osaka Pref.）5

Ashiyagawa（Ashiya, Hyogo Pref.）

15

Kobe

（Kobe, Hyogo Pref.）6

Mikage（Kobe, Hyogo Pref.）16

Kobe-sannomiya（Kobe, Hyogo Pref.）7

Takarazuka（Takarazuka, Hyogo Pref.）

17

Esaka

（Suita, Osaka Pref.）8

Senri-Chuo（Toyonaka, Osaka Pref.）18

Hommachi（Osaka, Osaka Pref.）

9

Osaka

（Osaka, Osaka Pref.）19

Kitahama（Osaka, Osaka Pref.）10

Tennoji（Osaka, Osaka Pref.）20

Nakatsu（Osaka, Osaka Pref.）Except for Tennoji (10),Hommachi (18), andKitahama (19), all of the
top 20 stations are on
Hankyu Hanshin Holdings
group lines

Source: A survey of prospective condominium purchasers regarding their preferredresidential area, conducted by seven major real estate developers (Sumitomo Realty& Development Co., Ltd., Daikyo Incorporated, Tokyu Land Corporation, Tokyo Tatemono Co., Ltd., Nomura Real Estate Development Co., Ltd., Mitsui Fudosan
Residential Co., Ltd., and Mitsubishi Jisho Residence Co., Ltd.) and included in a press release dated September 28,2017.

83

Overview of Umeda area①
Major rental properties （as of March, 2018)
Property nameUmeda Hankyu Bldg.
(Hankyu Dept.Store・
office tower)
Umeda Hanshin
Daiichi Bldg.
(HERBIS OSAKA)
Umeda Hanshin Daini
Bldg.
(HERBIS ENT)
Hankyu Chayamachi
Bldg.
(Applause Tower)

Leasable area
(1,000㎡) ※1

Number of floors

Completed213

41 floors above groundand 2 below ground

2012

82

40 floors above groundand 5 below ground

1997

55

28 floors above groundand 4 below ground

2004

52

34 floors above groundand 3 below ground1992

Hankyu Sanban Gai
Shopping Centre
Hankyu Grand Bldg.
GRAND FRONT OSAKA
Hankyu Terminal Bldg.
Hankyu Five Bldg.※2(HEP FIVE)

5 floors above groundand 2 below ground
32 floors above ground36
and 3 below ground
38 floors above ground28
and 3 below ground
18 floors above ground27
and 4 below ground
10 floors above ground20
and 3 below ground
39

1969
1977
2013
1972
1998

10 floors above ground1980
and 2 below ground
9 floors above ground
NU chayamachi
122005
and 2 below ground※1：Leasable area does not include areas for public use※2：Jointly owned property with Hankyu Hanshin REIT Asset Management
NAVIO Hankyu(HEP NAVIO)

16

Developments in Umeda district(red = Hankyu Hanshin Holdings group related Projects)① Umeda 1-1 Project（Dai Hanshin Building and Shin Hankyu Building Rebuilding Project）② (Provisional Name) Yodobashi Umeda Tower-Yodobashi Camera Co., Ltd.

③ (Provisional Name) Umeda 3-chome Project- Japan Post Holdings Co. Ltd.,/Osaka Terminal Building Co., Ltd.

④ (Provisional Name) Umeda Sonezaki Project-Sumitomo Realty & development Co., Ltd.
⑤ Chayamachi B-2 District Redevelopment Project-TOKYU LAND CORPORATION Co., Ltd.

84

Overview of Umeda area②
Trends in rent amongsix main business districts in Osaka

Trends in average vacancy rates amongsix main business districts in Osaka（%）（¥/3.3㎡）
20,00018.00
18,000

16.00
14.00

16,00012.00
14,000

10.00
8.00

12,0006.00
10,000

4.00
2.00

2013

2014

2015

2016

Osaka business areas (all)Minamimorimachi area
Senba area
Shinosaka area

2017

2018

8,000

2013

Umeda area
Yodoyabashi-Honmachi area
Shinsaibashi-Namba area
Tokyo business areas (all)

(%)

2013

Osaka business areas (all)11.25

Umeda area

2014

2014

2015

2016

Osaka business areas (all)Minamimorimachi area
Senba area
Shinosaka area(¥/3.3㎡)

2013

2017

2018

Umeda area
Yodoyabashi-Honmachi area
Shinsaibashi-Namba area
Tokyo business areas (all)
2014

2015

2016

2017

2018

2015

2016

2017

2018

9.45

8.71

6.80

4.68

3.38 Osaka business areas (all)11,307 11,213 11,132 11,101 11,107 11,302

11.50

9.22

7.84

5.54

3.20

2.02 Umeda area

14,295 14,262 14,118 14,207 14,366 14,684

Minamimorimachi area

10.33

8.24

6.08

5.40

6.01

5.06 Minamimorimachi area

9,642

Yodoyabashi-Honmachi area

10.64

9.66

9.94

7.51

4.58

3.60

Yodoyabashi-Honmachi area

11,132 11,005 10,993 10,898 10,861 11,105

Senba area

15.21

12.16 11.02

8.81

7.46

5.00

Senba area

Shinsaibashi-Namba area

8.31

6.35

6.06

9.07

5.95

3.70 Shinsaibashi-Namba area

12,361 12,315 12,225 12,110 11,802 11,696

Shinosaka area

8.30

7.69

6.86

5.42

4.65

4.01 Shinosaka area

10,407 10,173 10,114 10,106 10,213 10,142

Tokyo business areas (all)

7.34

5.47

5.30

4.34

3.60

2.80 Tokyo business areas (all)16,207 16,953 17,195 17,973 18,730 19,699

9,853

9,658
9,782

9,414
9,652

9,408
9,613

9,314 9,249
9,620 9,845(Comparison of average rents in March of respective years)
Source: Miki Shoji, “Office Data.”

85

Progress on the Development of International Culture Park ‘Saito’ (a new town)• Since the opening of the western area of Saito in Spring 2004, progress has been made in developing residential
facilities and attracting commercial tenants in the western area. Saito has developed into a new town, with aresidential population of 15,000 and a facility population of 3,200.
• In Spring 2016, the central area was opened up for common use. There are now several large-scale logistics centresin the area, and construction operations are underway in other commercial lots.
• As for the eastern area, in February 2015, Ibaraki City altered the plan for prior areas (Sanroku Line area andcentral-east area). In May of the same year, the Group received permission to conduct development operations in
the Sanroku Line area, and it commenced operations in November. We plan to develop the land that is allocated forlarge-scale commercial use, envisaging lots for distribution centres as well as manufacturing and processing facilities.
We aim to open part of the area for common use in fiscal 2019.
Residential population in western area
（as of February,2018）

茨木千提寺IC
Ibaraki-SendaijiIC
2017年11月開業予定

Minoh
City

Ibarakicity

Number ofhouseholds

2,093

2,802

4,895

Current
population

6,432

8,420

14,852

population/
Number ofhouseholds

3.07

3.00

3.03

Shin-Meishin Expressway

Saito

中央東エリアcentral-east area

SanrokuLine area
山麓線エリア（仮称）
新箕面駅（仮称）
新箕面駅

Total

（仮称）
箕面船場駅（仮称）箕面船場駅

Size of each area

Size

Western
area

Centralarea

Easternarea

312.6ha62.5ha367.5ha86

Global network（International Transportation）【Initiatives of International Transportation Business】
・ Expanding the network
・ Strengthening the logistics business・ Constructed new logistics centres
・ Expanded existing logistics centres

・ Invested in Africa-based agency
・ Established new bases◆New base and logistics centre in India

Number of bases: Japan=46, Overseas=124
We established a sales office in Neemrana (Bawal), which is home to the largest（as of May 1, 2018）
Japanese industrial zone in northern India, and another in Ahmedabad, an automobile
manufacturing hub.
We also established an airport office in Delhi (where we have already made inroads) anda logistics centre in Chennai. These new facilities will help us expand business further.
◆Business expansion in North America

We established a sales office in Monterrey, a cityin the north of Mexico which serves as a gateway
into the US for automobile manufacturers.
In the US, we established sales offices in Boston
and Miami and expanded our network of logistic
centres to include Chicago, Atlanta, and Dallas inan effort to achieve further growth.

◆New logistics centres in the ASEAN
region◆Strengthening business development in Africa

Having built a logistics centre in Indonesia in 2016,
in May 2017, we opened a large logistics centre in
Singapore. This logistics centre is the Group’s
largest such facility, and it exploits the significant
advantages that Singapore affords as aninternational logistics hub. With this centre, we
provide high value-added logistics services
focusing on goods related to Singapore’s key
industries, including electrical components,
medical equipment, and pharmaceutical products.
Similarly, in Ho Chi Minh City, Vietnam, weestablished a Group-managed logistics centre.

In April 2018, we invested in Intraspeed in South Africa and acquired the freight forwarder a subsidiary. We
also acquired as subsidiaries two companies owned by Intraspeed (one company is in Kenya and the other isin Uganda). Looking ahead, we will step up our efforts to develop business in Africa.

87

Hotel network of the Hankyu-Hanshin-Daiichi Hotel Group
Directly managed hotels (Hankyu Hanshin Hotels) 18Hotels 4,890 rooms
Other (franchises, etc.)

Directly managed hotels
Dai-ichi Hotel Tokyo
Dai-ichi Hotel Annex
Daiichi Hotel Tokyo Seafort
Kichijoji Dai-ichi Hotelremm HIBIYA
remm AKIHABARA
remm ROPPONGIHotel Hankyu International
Hotel new Hankyu Osaka
Hotel new Hankyu Annex
Hotel Hanshin
Umeda OS hotel ※remm SHIN-OSAKA
Senri Hankyu Hotel
Hotel Hankyu Expo Park
Takarazuka Hotel
Hotel new Hankyu Kyoto
remm KAGOSHIMA

28Hotels 5,534 rooms（as of April 1, 2018）

Ours Inn Hankyu
Ginza Creston
Dai-ichi Hotel Ryogoku
Dai-ichi Inn Ikebukuro
Dai-ichi Inn Shonan
Toyama Dai-ichi Hotel
Dai-ichi Inn Shinminato

Tokyo Dai-ichi Hotel Nishiki
Hotel Boston Plaza Kusatsu
Hotel Royal Hill Fukuchiyama
Amano Hashidate Hotel
Osaka Dai-ichi Hotel
Arima View Hotel urara
Maniwa Riverside Hotel

Kyoto,
Osaka,
京阪神
Kobe

10

2

Kure Hankyu Hotel
Hotel Ichibata
Tokyo Dai-ichi Hotel Shimonoseki

Other(franchises, etc.)

Takamatsu Kokusai Hotel
JR Hotel Clemant Takamatsu
JR Hotel Clement Tokushima

Tokyo Dai-ichi Hotel Iwanuma Resort

The Crown Palais New Hankyu Kochi

Tokyo Dai-ichi Hotel Tsuruoka
Tokyo Dai-ichi Hotel Yonezawa

Tokyo Dai-ichi Hotel Matsuyama

Tokyo Dai-ichi Hotel Shin-Shirakawa

46Hotels
10,424 rooms

Imabari Kokusai Hotel
Takakura Hotel Fukuoka※Hankyu-Hanshin Hotels are entrusted operation

Tokyo
東京地区
東京地区
・直営 7

5

・その他4

3

88