Excerpt from Results Briefing Materials for Financial Results for Fiscal 2022
(Ended March 2022) And Materials for Long-Term Vision（May 20, 2022）

Hankyu Hanshin Holdings Group

Long-Term Vision: Toward 2040

Strategic Management
Customers
Employees

Communities

Partners

Contribute toa sustainable society
Creditors

Next generation

Shareholders

The vision and strategy for the Group’s sustainablegrowth, and the specific plans for implementation
thereofLong-Term Vision
Where we want to be and how we will get there
Medium-Term Management Plan
Outlines specific actions for the medium term that willcontribute to the long-term vision

Sustainably enhance corporate value

The base underpinning our efforts to achievesustainable corporate development
Long-Term Vision
Medium-Term Management plan

Sustainability Declaration

Group Management Philosophy

General principles－ Create a future grounded in "Safety and Comfort",
and a future colored by “Dreams and Excitement”. －Our value to society
MissionBy delivering “Safety and Comfort” and “Dreams and Excitement”,
we create satisfaction among our customers and contribute tosociety.
1

Background2006

Hankyu Hanshin Holdings founded2017 Long-Term Vision for 2025 (FY 2026) unveiled
Upon the tenth anniversary of Hankyu and Hanshin’s integration, we unveiled
Long-Term Vision for 2025, which enshrined sustainable growth goals for 2025
(our 20th anniversary) and beyond.

Changes in business climate
The changes outpaced predictions in Long-Term Vision for 2025
Key changes that occurred after we unveiled the Long-Term Vision

Societal changes
accelerated by COVID

Groundswell toward
SDGs and 2050 carbon
neutrality goal

Changes in market overmedium to long term

The Long-Term Visionpredicted that the market
would change

Fasterchanges

2022 Long-Term Vision updated
Reflecting these changes, we updated the Long-Term Vision toachieve sustained growth in our value.

2

Long-Term Vision for 2025 in Review
 After unveiling the Long-Term Vision, we defined strategies for achieving the visionand embarked on a medium-term plan with FY2022 as the endpoint.
 We were on course until COVID struck, but the pandemic overturned ourunderlying assumptions about the business climate. Consequently, we missed our
medium-term goals and faced the need to update our Long-Term Vision.
<Strategies for Long-Term Vision>
Strategy 1

Strategy 2Strategy 3

Strategy 4Make our railway the absolute
best among the Kansai
networks

Construct a stable revenue
base in the Tokyo
metropolitan area andoverseas markets

Strengthen competitivenessby thoroughly pursuing brand
optimization anddifferentiation

Make greater use of
the Group’s collective
strength and develop
new business fields<Progress in Long-Term Vision (as measured by operating income)>
120.0 Billion yen

105.2

114.9

Billion yen

Billion yen

95.2

39.2

Billion yen

Billion yen

Pre-COVID

2.1
Billion yen

FY

2018

2019

2020

2021

2022
2022

Medium-term target¥100 billion level…

Endpoint of Long-Term
Vision110.0 Billion yen

2026

Targeted figure for 2025
Operating income¥120.0 billion

EBITDA¥200.0 billion

Interest-bearing
debt/EBITDA ratio

Between 5 and 6 times

3Long-Term Vision for 2025 in Review<Progress in key strategies>
Key strategy

Increase the value of our assets
in the Umeda area
Strategy 1

Invigorate key line-side bases

Construct new rail links to
improve the transport network

Strategy 2

Progress

End date

Umeda 1-1 Project

Has entered service

February 2022

Umekita Phase Ⅱ Development Project

Under construction

FY2028

Shibata 1 Project (see p.27)

Under planning

To be determined

Senri-Chuo Redevelopment (see p.28)

Under planning

To be determined

Naniwasuji Connection Line/Shin-Osaka
Connection Line Project

Under planning

To be determined

Kita-Osaka Kyuko Railway
Line Extension Project

Under construction

FY2024

Hankyu Hanshin Ginza Building

Has entered service

March 2020

Under planning

FY2029Under planning

To be determined

Acquired

July 2019

Acquire more stock in the Tokyo Yaesu 2 Naka Redevelopment
metropolitan area
Development of site of the Hotel Grand
PalaceDevelop plans for acquiring stock Acquisition of rental properties in Indonesia(real estate) overseas(e.g. Plaza Indonesia Complex)

Strategy 3
Strategy
4

Condominium business in Japan and overseas (expand in ASEAN)
Grow short-term-return (fix-and-flip) property business
Use livestreaming to expand Takarazuka Revue market
Develop the information services business
Overhaul travel business (until COVID)

•
•
•
•
•

• Venture into new business fields
4Changing business climate: Rapid societal changes
Driven by COVID
COVID has accelerated broad changes, including in where people live andwork and in what people value (people place more value on quality of life).
These shifts are set to continue.
Changes driven by COVID
Changes in population behavior
Less travel
demandMore dispersed
workforce,dispersed
learning

More options
for where to
live

Further changes to comeGreater diversity in work
(remote work, side jobs)

More value placed on private life

Changes in corporate sector
Infrastructure for flexible
working (fewer businesstrips and far-flung job
transfers, more side jobs)

Pace of digitalization to increase
More BCP

Emphasis on quality of life
More emphasis on health and safety, more
health consciousness
Changes in work hours, leading to risinginterest in how to spend free timeMore communication options (mix of real andonline)More online shopping
More demand for real experiences
Further momentum in SDGs, 2050
carbon neutrality goal
Further efforts to extend qualityadjusted life expectancy
5Changing Business Climate: Growing Interest in SDGs and2050 Carbon Neutrality Goal
With growing interest in SDGs and the 2050 carbon neutrality goal,companies are increasingly expected to contribute to this agenda.
Accordingly, we will take action to demonstrate our commitment.
<Hankyu Hanshin Holdings Group Sustainability Declaration>

Sustainability Declaration（released in May 2020）
Create a future grounded in safety and comfort,
and a future colored by dreams and excitement.

<Contribution to 2050 carbon neutrality goal>
The Government of Japan has
upgraded its 2030 carbon reduction
target2030
target（Compared to FY2014）

26％

46％

 Contributing to SDGs and the carbon neutrality goal will entail significant investment
and additional costs.

<Demand for stronger governance> The growing interest in SDGs is accompanied by a heightened demands oncompanies to strengthen their corporate governance in order to contribute to asustainable world (as part of this trend, it is now critically important to maintainor improve capital efficiency, keeping a close eye on capital costs).
6

Changing Business Climate: Medium- to Long-Term Market Changes 1

Demographics ofJapan

Recovery in
inbound demand

Positive factor, actionThe population of Japan has
been shrinking and aging at ahigh pace. With COVID reducing
birthrates, the pace may further
increase.

 We can help stem the population
decline in line-side areas if weincrease the competitiveness ofthese areas.

Construction costs have risen overthe past ten years and are set tocontinue rising (meaning lower
returns from stocks held over thelong term) Instead of always holding stocks
over the long term, we will offload
underperforming stocks to ensure
reasonable returns (for thebusiness as a whole).

Land prices in Tokyo continue toclimb steeply.
Prices are likely to remain highgiven that demand has remained
brisk even during COVID.

 Select properties carefully toensure profitability of short-termreturns (fix-and-flip) properties.

It will take time for inbound visitor
numbers to return to pre-COVID
levels (must keep an eye on future
trends).

 In the meantime, if we work on
infrastructure andcommunications, we can increase
the competitiveness of the Umeda
and other line-side areas and thus
draw in more visitors when
demand does return.

Construction costs

Real estate market
in Tokyometropolitan area

Negative factor





7

Changing Business Climate: Medium- to Long-Term Market Changes 2
Rapid advances indigitalcommunications



By 2030, the world should movebeyond 5G to 6G, leading tocommunications that far exceed
human senses.



The role of MaaS is shifting fromfacilitating efficient, seamless
mobility, to optimizing events
associated with travel motives (1).

Shift to nextgeneration mobility
MaaS

Negative factor
Positive factor, action

 In anticipation of the impact of 6G,
we will analyze the implications fortransportation services and explore
ways of integrating 6G to level-up
the services.

 By adeptly integrating theservices and content of our Group
companies and external partners,
we can create impetuses fortravel, which will be one way togenerate travel demand as the
population shrinks.

(1) The motives for traveling somewhere (work, shopping, activity)

Reference: Seven Kansai-based rail companies(2), including our own, are exploring ways toroll out MaaS in Kansai with an eye on the 2025 Osaka Expo.
(2) Osaka Metro, JR West, Kintetsu, Keihan, Nankai, Hankyu and Hanshin

Economic growth in
ASEAN



ASEAN countries, whose populations are set to grow, have amazing economic
potential and bright prospects for sustained economic growth.

8Impact of Changes on Group

Negative factor
Positive factor, action

The changes in the business climate have affected us in the following ways.
•

Changes in travel behavior have hit businesses in the Group that are geared around travel and involve
real-world customer touchpoints. However, we can cope with the impacts by leveraging assets across theGroup.

Less ridership revenue

Revenue loss is limited among our rail
networks

Real EstateLess demand for office space,less revenue from urban
commercial properties

Demand remains strong among OsakaUmeda prime urban real estate (officeand commercial)

HotelsLess demand for travel andparties

We have rediscovered demand forface-to-face service

Urban
Transportation•

COVID has also created possibilities: It has driven up the value of real-world
experiences and content.

•

Our approach from now on requires a digital transformation strategy and acommitment to SDGs and the 2050 carbon neutrality goal.

•

Market changes will accelerate over the medium and long term and many of the
impacts will be negative. However, we still have plenty of room to grow.

The changes pose challenges, but by rising to thesechallenges we have an opportunity to transform and grow.

9Thinking Behind Updated Vision
To keep growing our value amid these changes, we must do the following:

Set a new vision that covers the late 2030s and thencommit as a group to the transformation necessary toachieve this vision.

<Thinking behind growth goals>• We will continue working on the projects in Osaka (Shibata 1, Naniwasuji Connection Line, Shin-Osaka
Connection Line). Current estimates suggest that these projects will turn a profit in the 2035–2040 period andthen serve as a significant growth driver (even if depopulation accelerates).
• However, the outlook until then is more uncertain than ever. The business climate is set to change inprofound ways over that interval, making it hard to predict what the world will look like in the far-off
period of 2035–2040.
• In the meantime, we must set milestone for sustainable corporate growth (such as FY2031, the endpoint for
the SDGs) and then commit to targets for these milestones.

Based on this thinking, we decided to supplement the envisaged growthscenario for 2035–2040 with financial and non-financial growth goals for
FY2031 in order to clarify our commitment to sustainable corporate growth.
FY2023…

FY2026

Medium-Term Management Plan…

FY2031
Large projects, carbon
neutrality plan
still underway

Long-Term Vision: Toward 2040…

2035-2040
Large projects turn profit,
become growth driver

A vision that covers thelate 2030s
10FYI: Key Projects in Umeda and Line-Side Areas
These projects in Umeda and line-side area will still be underway in FY2031.
FY2022

FY2023

FY2024

Umeda

Umeda 1-1 Project (Osaka
Umeda Twin Towers South)

FY2025Line-side Area

●End of May 2021:
Completion of construction

FY2027–2031

FY2032–

Umekita Phase Ⅱ Development Project●Around summer 2024:Advance openings●FY2028:Full openings●Sep. 2021:Completion ofphase II construction●Feb. 2022:Complete all
construction
In conjunction with this,Hanshin Osaka-Umeda Station will berenovated (to be completed in FY2025)

LOGiSTA, LogicrossIbaraki Saito

FY2026

Shibata 1
Consultation, negotiation (construction start date to be determined)

Kita-Osaka Kyuko Railway Line
Extension Project●FY2024:Intended start of service
Senri-Chuo Redevelopment
Consultation, negotiation (construction start date to be determined)

Project to rebuild Kobe Hankyu Building’s east wing and renew its west wing
（Kobe Sannomiya Hankyu Building, remm plus Kobe Sannomiya）●April 2021:Opening

Development in public housing site in Koshien (KOSHIEN PLUS)●March 2022: Opening

Development on west sideof Hankyu Nishinomiya
Gardens●September 2023:Opening

Naniwasuji Connection Line/
Shin-Osaka Connection Line
Consultation, negotiation(construction start date to be determined)
11

Where we Want to be in the Long Term
The slogan for the Long-Term Vision

Enhancing line-side areas and expanding fields
With the world set to change in unprecedented ways, the group will work as one to transform ourorganization, make our rail networks and content more attractive, expand our portfolio, maintainfinancial health, and keep capital costs in mind.
This will enable us to...

 ...create and provide the diverse values (safe, comfortable urban life and inspiring experiences) thatwill enhance line-side areas and expand our portfolio, leading to better customer satisfaction andsustained business growth.
 ...meet the expectations of our stakeholders (customers, communities, others) in terms of supportinga sustainable future.
 ...ultimately become a well-balanced, sophisticated corporate group that grows alongside thecommunity (Kansai).
Value for stakeholders
Customers

Improve customer satisfaction by providing safe, comfortable urban life, attractive content, and inspiringexperiences

Communities

Work with the community to make our railways the absolute best in Kansai

Employees

Improve employee satisfaction by providing a diverse and inclusive workplace
This means a workplace that is free from discrimination based on exterior attributes (like gender, age, disability, and nationality)
or interior attributes (like lifestyle, job history, and values) and one that respects individuality and lets employees fulfill their potential.

Partners

Promote mutual trust and mutual growth through the continuous provision of high value-added services

Creditors

Continue to maintain our financial soundness (maintain credit rating)Shareholders

Maintain a stable and generous dividend, with a stable or rising ROE.

Next generation

Make Kansai a vibrant region where young people want to live, visit, and work.

12

Long-Term Vision: General Image
Value Creation Process
Value
accumulates

Leverage external partners
Strategies to achieve vision

Services (value) we provide

Strategy 3

Expand the coverage of our line-sidebusiness model
Strategy 2

Inspiringexperiences

Make our content as compelling as possibleUse(including
digitalassets)

Better customer
satisfaction

Tangible, intangible corporate resources

Safe,
comfortableurban life

Make our line-side communities theabsolute best among the Kansai networks.

We sustainably enhance corporate value

Strategy 1

High-quality
business
supportStrategy 4

Increase market share by providing highvalue-added services

Hankyu Hanshin DX Project

Initiatives linked with SDGs, 2050 carbon neutral target
Better collaboration with external partners
Financial Policy

Maintain financial health

Keep capital costs in mind
Stable returns

contribution
to asustainable
society
Value forstakeholders
Community
growthContribution
to SDGs,
2050 carbon
neutrality goal

Guided by the Long-Term Vision, we unite and transform

Financial/non-financial KPIS for FY2031
Financial KPIs
Profitability

Operating income¥130.0 billion (plussomething extra)

FinancialhealthCapitalefficiency

Interest-bearing
debt/EBITDA ratio

Between 5–6 times

ROE

7% range over med–
long term

Non-Financial KPIs
Rate of CO2 emissions cuts
46％ down from FY2014 level
Zero culpable incidents in ourrailway businessContinued improvement in employee
satisfaction
Percentage of management positions
held by women Around 10％
Percentage of new hires who are
women
Always more than 30%

13

Long-Term Growth Vision for 2035-2040
 FY2031 (defined in the vision as a milestone for future growth): By that year, we will raise
operating income to ¥130.0 billion by growing existing businesses. We also aim to add something
extra on top of this through a digital transformation project.
 2035-2040: By this stage, large projects will have turned a profit and be driving further growth.

2035-2040: Aim forfurther growth
Operating income (FY2031 target)¥130.0 billion plus something extra
DX drives further growth

DX adds something extra¥130.0billionDX supports existing businesses(enabling better efficiency and saving labor)

Large projects that will be underconstruction or will have entered service¥130.0 billion
from existing
businesses¥115.0billion• Shibata 1 Project• Senri-Chuo Redevelopment• Naniwasuji Connection Line/Shin-Osaka Connection
Line Project, etc.

Progress in large projects¥100.0billionFY2026

FY2031

2035

2040
14

Current Portfolio, Future Direction<Our current portfolio is divided by service and area>
Line-side business
Kansai（Umeda, other line-side areas）
model (e.g. contributeto prosperous
Services connected tocommunities)

Beyond our line-side areas (Tokyo, overseas)

people’s lives (B2C)

Ｂ2Ｃ

Real Estate Sales

Real Estate Leasing

Broadcasting andCommunications

HotelsHorizontal
expansion

Horizontal
expansion
Content(B2C)

Ｂ2Ｂ

Healthcare

TravelReal Estate
Leasing

Bring abundant lifestyles of ourline-side areas to other areas (inand outside Japan)
Stage

Stage

Digital infrastructure
for enhancing urban
amenities

Underpin safe, comfortableurban life and Group portfolio

Real Estate
Sales

HotelsEnhance value of rail networks,
revitalize communities

SportsServices connected
to people’s lives(B2C)

Group, line-side areas with added power

Urban
Transportation

Expand regional coverage (beyond our railline-side areas) of competitive businesses
that have potential to expand

Other newinitiatives

Vertical
expansion

TravelContinue enhancing value of line-side areas tomake our line-side communities the absolute
best among the Kansai networks

B2B information and transportation services(pan-area)
Information
International
Services
Transportation

Enhance value we
provide to increase
market share

Collaborations
with external
partners<Future direction>
We will enhance our businesses and community-building efforts in line-side areas, and start applying our businessand community-building knowhow beyond these areas (both in and outside Japan) to bring us more quickly on
track toward achieving sustainable growth. To that end, we must ascertain changes in the business climate
swiftly and work as a group to adapt to the changes.
15Strategies for Achieving Vision
Kansai（Umeda and other line-side areas）

Strategy 1

Strategy 3(core strategy)

Make our line-side communities the absolute best among
the Kansai networks (further entrench position in Osaka-Umeda)• To cope with the shrinking and aging population, we will focus on making ourline-side areas much more attractive by engaging in community building,linking up with the new transport connections, actively leveraging digital
innovations (next-generation MaaS, wifi tech), and promoting longer qualityadjusted life expectancy.
• Guided by the Umeda Vision (p.24-26), we will use new projects (e.g. Shibata
1) to make Osaka-Umeda as a whole world-class urban environment.

Strategy 2• Expand customer base and make content more
Make our content ascompellingcompelling as possible • Actively leverage digital tech(develop new content)

Beyond our line-side areas (Tokyo, overseas)

Expand the coverage of
our line-side businessmodel• Expand line-side business model(e.g. building abundantcommunities) beyond line-sideareas Expand Real Estate businesses(e.g. condos, fix-and-flip,
rentals) beyond line-side areas(in and outside Japan)
 Expand competitive content
beyond line-side areas• Provide compelling travel content to people ofdifferent generations

Strategy 4

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

Hankyu Hanshin DX Project
Provide new services in digital sphere, introduce groupwide ID

Contribute to SDGs, 2050 carbon neutrality goal
Material issues highlighted in Sustainability Declaration (e.g. environmental protection, empowering
individuals)

16

Strategies for Achieving Vision: Strategy 1
Strategy 1(core strategy)

Make our line-side communities the absolute best among the Kansai
networks (further entrench position in Osaka-Umeda)• To cope with the shrinking and aging population, we will focus on making our line-side areas much more attractive byengaging in community building, linking up with the new transport connections, actively leveraging digital innovations(next-generation MaaS, wifi tech), and promoting longer quality-adjusted life expectancy.
• Guided by the Umeda Vision, we will use new projects (e.g. Shibata 1) to make Osaka-Umeda as a whole world-class urban
environment.
Actions for Umeda Vision• Guided by the Umeda Vision, we will work on large
projects (Umekita Phase II, Shibata 1) and upgrade ourreal-estate holdings in order to upgrade the urban
amenities (offices, commercial facilities, hotels), making
Osaka-Umeda as a whole a world-class hub for innovation
and an attractive tourist destination.
New transport connections• With Osaka growing more important as a hub for airport
links (with Kansai’s three airports under joint
management) and land travel (with planning underway
for a new maglev route), we will engage in plans to build
the Naniwasuji Connection Line and Shin-Osaka
Connection Line to leverage land transport links andchannel global dynamism into our line-side areas.
Actively leverage digital innovations• We will capitalize on next-generation MaaS and wifi tech.
• We will apply digital innovations in our railways to savelabor.

Building line-side communities• To increase resident and non-resident populations in our lineside areas, we will develop hub areas (e.g. Senri-Chuo
Redevelopment), build new stations (Mukogawa new station on
the Hankyu Kobe Line), and develop housing.
Senri-Chuo redevelopment
 This redevelopment project includes the construction of
Senri Hankyu, Senri Selci, and Senri Hankyu Hotel in thevicinity of Senri-Chuo Station (see p.28）
Mukogawa new station
 This new station will be built on the Hankyu Kobe Linebetween Nishinomiya-kitaguchi and Mukonoso (on thebridge spanning Muko River)
Promote longer quality-adjusted life expectancy• We will develop businesses that promote longer qualityadjusted life expectancy (e.g. healthcare businesses).
Universal design• We will incorporate universal design (e.g. platform screen
doors) to ensure safe and accessible transport.
17

Strategies for Achieving Vision: Strategy 2Strategy 2Make our content as compelling as possible (develop new content)• Expand customer base and make content more compelling• Actively leverage digital tech
• Provide compelling travel content to people of different generations
Sports• We will deliver compelling sports content (related to Hanshin Tigers, Hanshin Koshien Stadium).
• We will integrate digital tech to enhance our sports services and content.

Stage• To further enhance content, we will develop a system that delivers high quality consistently, ensuring that
Takarazuka Revue remains cherished for the next 100 years.
• We will integrate digital tech to enhance our stage services and content
Travel• We will become the overwhelming leader in a guided tours.
• Over the medium to long term, we will diversify our travel models (enhancing products under specific themes)
and win new customers. We will also expand into non-travel businesses such as support services for local
authorities.
• We will integrate digital tech to enhance productivity in back-office operations (e.g. improve online advertising
for tours).
New content• We will work with external partners to develop new content.
18

Strategies for Achieving Vision: Strategy 3
Strategy 3

Expand the coverage of our line-side business model• Expand line-side business model (e.g. building abundant communities) beyond line-side areas
 Expand Real Estate businesses (e.g. condos, fix-and-flip, rentals) beyond line-side areas (inand outside Japan)
 Expand competitive content beyond line-side areas

Expand Real Estate businesses beyond line-side areas (in and outside Japan)• We will accelerate efforts to develop our short-term-returns (fix-and-flip) business and expand
the condominium business into redevelopment and rebuilding.
• Japan: In the Tokyo metropolitan area, we will proceed with properties under development while
exploring ways to integrate our hotels and entertainment content into community building
efforts.
• Overseas: In ASEAN markets with bright prospects for sustainable growth, we will leverage ourline-side knowhow and work with external partners to expand the scale of our condominium,
short-term-returns (fix-and-flip), and rental businesses there.
Expand content beyond line-side areas• We will expand Takarazuka Revue content and other content beyond line-side areas (in andoutside Japan).

19

Strategies for Achieving Vision: Strategy 4
Strategy 4

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

Enhance value of services we provide• Information services business: We will expand the scale of the business. We will use our tech andknowhow and engage in tech-related partnerships to develop new information services. We will
also provide information services to support line-side efforts and a digital transformation within
our Group in a way that addresses material issues (for us and our stakeholders).
• International Transportation business: With the global business climate in flux, we will expand thescale of the business (more global-level transaction volume), transform the portfolio (putting
more weight on ocean freight and logistics operations), accelerate business development in Asia,and enter new sectors with bright growth prospects.
Channel dynamism of external partners• We will work closer with external partners, channeling their dynamism into our businesses.

20

Hankyu Hanshin DX Project■ Aims of the Hankyu Hanshin DX Project
The project is designed to digitally transform lifestyles, diversifying customer touchpoints andimproving the customer experience.

The project will leverage the benefits of digital technology to enhance comfort and safety forline-side residents and other stakeholders. Leveraging our own content, the project will combine
digital with real-life to deliver more experiences and interpersonal encounters that fulfil theunchanging need for dreams and excitement.
Four sets of actions in Hankyu Hanshin DX Project

1. Knowing our customers••

Introduce group ID(HH Cross ID)
Integrate and analyze
customer data

３．Delivering the benefits of digitaltechnology to our customers
Prepare:•Free WiFi and other digital infrastructure•
Digital Twin, metabase•
Streaming platforms

2. Communicating with our customers••

Enhance lineup of communication tools suited
to new lifestyles (e.g. HH cross TOWNS)
Further improve communications by
integrating digital tools (e.g. apps) withexisting media

4. Enhancing our content•••

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

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

21

Contribute to SDGs, 2050 Carbon Neutrality Goal
<Environmental protection (align strategy/targets with 2050 carbon neutrality goal)>• Committing to carbon neutrality by 2050, the Japanese Government has upgraded its 2030
carbon reduction target to 46% reduction from the FY2014 level (compared to 26% before thechange). We have aligned our own carbon reduction target with that of the government’s.

Rate of CO2 emissions cuts（Applies to: HHHD and subsidiaries' Japanese worksites）
FY2031target46％
reduction(compared to FY2014)

FY2051targetNet zero• To reduce energy consumption, we will invest in energy-efficient technology (keeping an eye on
financial soundness and return on investment). We will also keep an eye on technological advances
and introduce renewable energy systems if they are financially viable.

<Empowering individuals (promote employee satisfaction and workplace diversity)>• We must make the most of our talent (our most important asset) if we are to grow our value. To that
end, we must cultivate a workplace culture that respects diversity and lets employees reach their fullpotential.
• Accordingly, we will embrace workplace diversity and inclusion and build such a workplace culture (onethat is motivating, healthy, productive, diverse, and inclusive).
• We will aim for the following targets for FY2031: continual improvement in employee satisfaction,
women occupying 10% of managerial posts, and women making up more than 30% of newhires.

<Non-financial KPIs for FY2031>
Rate of CO2 emissions cuts
46％ down from FY2014 level
Zero culpable incidents in our railway businessContinued improvement in employee satisfaction
Percentage of management positions held by
women Around 10％
Percentage of new hires who are women
Always more than 30%

22

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

To achieve a stable baseline profit, we will maximize top- and bottom-line growth inour businesses by tightly controlling expenditures and by integrating digital tech ina way that expands revenue opportunities and increases productivity.

Maintainfinancialhealth•We will also tighten risk management in volatile businesses (e.g. overseas realestate businesses)
Maintain financial health•

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

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

Maintain or improve capital efficiency (create returns that exceed capital costs)•

Our businesses will keep capital costs in mind, committing to maintain or improvetheir returns with ROIC (= operating income / invested capital) as one of thebenchmarks.

Keep capitalcosts inmind•

To avoid bloated balance sheets, we will be more circumspect about increasing ourstocks (carefully vetting prospective investments with an eye on return), overhaul
business approaches, and offload underperforming assets.

•

ROE
7％ rangeover medium tolong term

We will provide stable and generous shareholder returns, maintaining a reasonable

D/E ratio.
•

Through these measures, we aim for the ROE range shown on the right.

23

(Reference) Background to Umeda Vision (1)The Future Direction of Osaka-Umeda and Kansai
Building an internationally competitive city: Channeling growth opportunities
・With the upcoming Expo 2025 and the casino resort project for 2029, Kansai is garnering attention,
including from overseas.
・Meanwhile, initiatives are underway to make Osaka City a truly international city (for example, Osaka
City has been designated as a National Strategic Special Zone for piloting super-city initiatives, and thenational and municipal governments have unveiled a public-private strategy to make Osaka a global
financial hub).
Piloting the super-city concept in Osaka

Strategy to make Osaka a global financial hub

Super-city initiatives are being piloted in two areas under the theme “datadriven solutions for wellbeing and life”

The global financial hub envisaged

Osaka, Kansai, Expo 2025 (Yumeshima)
Designing a future society for our
lives

Channeling the dynamism of Asia and thewider world
An international city powered by financeUmekita PhaseⅡ

A trailblazing city
A city that leads the world in finance

Life-design, innovation

Osaka-Umeda, at the center of Kansai, will link
the region with the world:
Transport networks/infrastructure will bestrengthened
・Plans are underway to develop new transport connections(Naniwasuji Line, Naniwasuji Connection Line, Shin-Osaka
Connection Line, and the underground JR Osaka Station
scheduled to enter service in spring 2023). If the plansmaterialize, they would significantly enhance air and land
access to Osaka-Umeda, increasing the prospects for OsakaUmeda to channel the dynamism of the country and the world.
24

(Reference) Background to Umeda Vision (2)Osaka-Umeda’s Roles and Strengths
Umekita’s role in addressing social challenges:
Osaka-Umeda as a trailblazer for addressing social challenges
・The prefectural and municipal governments have chosen Umekita Phase II as a critical location for the supercity project. The locale will be center for industry, academia, and government collaboration in creating new
industries that will address social and environmental challenges to sustainability, and a model area forpioneering data-driven digital transformation.
・If the project to make Osaka a global financial hub succeeds in enhancing the international profile of Osakaand Kansai, it will further increase the potential of the locale to draw in from around the world the talent andcapital necessary to grow startups that will create the new industries.
・Having attracted knowledge from around the world, Osaka-Umeda will be a trailblazer in addressing social andenvironmental challenges to sustainability.

Kansai’s solutions to social and environmental challenges
・An aging-friendly society (use of clinical data)
・Stress-free, seamless mobility
・Workplaces that are diverse, empowering, andaccommodate new work practices

・Hotbed for startups and innovation
・Strong preparedness for natural disasters

Osaka-Umeda’s role Lead the way in addressing social challenges
Osaka-Umeda as an unmatched urban locale: Offering something rarely seen elsewhere
・Unlike other urban locales in Japan, Osaka-Umeda features a compact cluster of office, retail, and entertainment
functions, all within walking distance.
・If Osaka-Umeda is to be a place where people around the world want to work or visit, it is necessary to leverage
this rare advantage to ensure that the area accommodates the diverse needs of the new normal.
25

(Reference) Umeda Vision

Strategy 1・Against the backdrop described in pp. 24–25, we have established the Umeda Vision, which envisages OsakaUmeda as an international hub.
・To achieve this, we have set six basic policies that will leverage Osaka-Umeda’s unique value to make thearea a center for creating new industries and an international tourist destination. The policies will alsoenhance Osaka-Umeda’s basic value so that it is equipped for the new normal. Additionally, the strategies will
also promote the Osaka-Umeda brand to an international audience.
Osaka-Umeda’s unique value
An international city that beats thecompetition

A place of co-creationthat produces newer
value

Functions to generate new industries
that will solve the world’s problems

A place thatfacilitates encounters
and interaction

A space for new encounters andexperiences not available elsewhere

A dynamic cluster ofpeople andcompanies

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

The functions
createdHub forcreating new
industries
International
tourism
destination

International hub

International visitors(visiting for a variety ofreasons)

How Osaka-Umeda
should be

Where people around the world
want to work or visit

TargetBasic Policy 1 : Make Umeda a place of co-creation that produces newer value

Six Basic Policies

An international city withunique value that beats
the competition

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

Basic Policy 2 : Make Umeda a place that facilitates encounters and interaction
Basic Policy 3 : Make Umeda a dynamic cluster of people and companies
Basic Policy 4 : Make Umeda a place that uses the latest digital technology to offer
new value
Basic Policy 5 : Make Umeda a sustainable place

Basic Policy 6 : Strategically organize marketing and communications to the world26

(Reference) Shibata 1 Development

Strategy 1• To further enhance the value of Osaka-Umeda, we will press on with plans for Shibata 1 Development, which willbe the third major project (following Umeda 1-1 Project and Umekita Phase II Development Project).
Until 2021

Osaka Umeda Twin Towers（2022–）• Forming part of Umeda Vision,
Shibata 1 Development will involve,
among other things, remodeling
Hotel new Hankyu Osaka and theHankyu Terminal Building) and fully
renovating Hankyu Sanbangai. In thisway, the project looks ahead to thenext generation and will leverage thedistinctive characteristics of the rail
terminus to create a multifunctional
hub befitting of the entrance to
Osaka-Umeda.

Umekita Phase Ⅱ openings（FY2028）

Shibata 1 Development

Osaka-Umeda Area

-We have decided to close the Hotel
new Hankyu Osaka around the endof FY2025 because it is seriously
dilapidated and because Hotel
Hankyu Respire Osaka, which is of asimilar scale, opened in an adjacentzone.
• We will develop a specific plan for the
future of the hotel site and accelerate
consultations with government andother stakeholders with a view tolaunching a development project assoon as possible.
27

(Reference) Plan for Senri-Chuo Redevelopment
・Senri-Chuo is a key strategic area for us. In 2019,
Toyonaka City unveiled a plan to redevelop thevicinity of Senri-Chuo Station (outlined in red in the
figure) as part of a new community-development
project. The land here has been partitioned andplans are being brought forward to redevelop thezone.

Overview of the Senri-Chuo area
Map based on GSI geospatial data
（https://maps.gsi.go.jp/#17/34.809594/135.495665/&base=pale&base_grayscale=1&ls=pale&disp=
1&vs=c0j0h0k0l0u0t0z0r0s0m0f1&d=m ）Senri-Chuo multi-story

car park 2

Senri-Chuo multi-story
car park 1

Senri Asahi Hankyu Bldg.

Kita-Osaka Kyuko Line Senri-Chuo station

・Meanwhile, we had decided to close Senri Hankyu
Hotel around the end of FY2026, as the building
was dilapidated. Now, we are exploring ideas for
how to use the site of the hotel. Mindful of theneed to maintain the vibrancy and convenience of
the area around the station, we will keep an eye
on the plans to redevelop the area and decide
about the land use accordingly.

Strategy①

Senri-Chuo multi-story

Hankyu Senri-Chuo Bldg.
（Office buidling）

Senri Hankyu

Senri Selcy（Commercial facilities）（Office building）

Area around Senri-Chuo Station■Time from Senri-Chuo Station to Osaka’s
main terminals（The train runs direct to below stations as theKita-Osaka Kyuko Line is connected with theMidosuji Line of the Osaka Metro)

・To Shin-Osaka station approx. 14 minutes
・To Umeda station
approx. 20 minutes

Osaka Monorail

To Umeda

Senri Hankyu Hotel【Legend】
Sole-owned or co-owned properties
H2O Retailing assets
Area flagged for redevelopment(Commercial facilities etc.)※Kita-Osaka Kyuko Railway is extending its line 2.5 km northward from its current
northern terminus, Senri-Chuo Station. The extension will begin service in FY2024.

28

(Reference) Building Stronger Transport Networks

Strategy 1• We engage in the planning process for new lines and stations to make our transport networks
stronger.
Osaka International Airport(Itami Airport)① Kita-Osaka Kyuko Railway Line
Extension Project④Osaka Airport Line

⑤Mukogawa
new station

Juso

KobeSannomiya②NaniwasujiConnection Line
Osaka Bay

Kobe Airport
Hankyu Kobe Line
Hankyu Takarazuka Line
Hankyu Kyoto Line
Hanshin Line

Shin-Osaka③Shin-Osaka
Connection Line

Osaka-Umeda

Under development① Kita-Osaka Kyuko Railway Line
Extension Project
Senri-Chuo – Minoh-Kayano

Under negotiation

Naniwasuji Line

② Naniwasuji Connection Line

Osaka-Namba

JR Osaka (Underground) – Hankyu Juso

③ Shin-Osaka Connection Line
Hankyu Juso – Shin-Osaka④ Osaka Airport Line
Branch line from Hankyu Takarazuka
Line

Kansai International Airport⑤ Mukogawa new station
Between Hankyu Mukonoso and Hankyu
Nishinomiya-kitaguchi
29