Hankyu Hanshin Holdings Group
Supplementary Materials of
Financial Results for the First Quarterof Fiscal 2022 (Ending March 2022)
July 30, 2021
Hankyu Hanshin Holdings, Inc.
9042 https://www.hankyu-hanshin.co.jp/en/

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

Ⅰ. Performance Highlights for the First
Quarter of Fiscal 2022
(Ending March 2022)1

Consolidated Statements of Income(Summary)
Q1 FY2022
Results

Consolidated Subsidiaries
Equity-Method Affiliates
Total(¥ million)

Impact of applying ASBJ 29+￥1.6 billion

FY2021Results

Change98 companies 95 companies +3 (3 companies increase)
11 companies 11 companies
109 companies 106 companies +3
Q1 FY2022
Results

Q1 FY2021
Results

ChangeRemarks

151,977

111,286+40,691(―)

Operating income

4,761-13,209+17,971(―)

Non-operating income

2,424

1,128

+1,296

Non-operating expenses

2,546

3,298

-752

Ordinary income

4,639-15,379+20,019(―)

Extraordinary income

33,442

258+33,184

Gain on contributions for construction +26,637
Employment adjustment subsidies +3,313
Gain on sale of investment securities +3,177

Extraordinary loss

32,043

10,389+21,654

Loss on reduction of noncurrent assets +26,660
COVID-19-related losses -5,056

Net income attributable toowners of the parent

3,204-18,900+22,105(―)

Applying ASBJ 29 (Accounting Standard for Revenue
Recognition) impacts revenue from operations in two
main ways (the impact on operating income isnegligible in each case) :1) We will now recognize revenue at the grossamount (rather than the net amount as before)
for transactions in the travel business related toorganized tours.
2) We will now recognize revenue at the net
amount (rather than the gross amount as
before) for transactions in the retailingbusiness related to sales and purchasing,and for transactions in the information andcommunication technology segment related
to agency retail sales of electricity.

Revenue from operations（Reference）

Q1 FY2022
Results

Q1 FY2021
Results

ChangeDepreciation and amortisation

13,835

12,700+1,134

Financial balance ① - ②-1,608-1,704+95

Interest and dividend income①

532

552

-19

Interest expense②

2,140

2,256

-115

Note: The percentage changes are not shown because the figures for FY2022 Q1 comply with the
Accounting Standard for Revenue Recognition (ASBJ No. 29), applied from the start of FY2022.

For details,
please see next page
Equity in income of affiliates +1,521
Equity in losses of affiliates -560

2

Consolidated Statements of Income (Breakdown for each business segment)[Key results in current period]
Revenues and income increased overall. While most business segments continued feeling
pandemic impact, the impact had lessened compared to the same period last year.
Revenue from operations(¥ million)

Q1 FY2022
Results

Q1 FY2021
Results

Urban Transportation

37,24531,529Real Estate

46,801Entertainment
Information andCommunication Technology

Operating income
Q1 FY2022
Results

Q1 FY2021
Results+5,715-534-7,187+6,65342,303+4,498

7,576

7,865

-289

16,6073,530+13,076

3,967-2,602+6,56914,285

12,459+1,826

939

810

+128

3,092

125

+2,967-3,765-4,903+1,138International
Transportation

29,461

18,814+10,647

1,651

12+1,639Hotels

3,941

2,142

+1,798-3,621-5,196+1,575

Other

10,262

9,004+1,257

34

-211

+245

Adjustment-9,719-8,623-1,095-1,486-1,796+310

151,977

111,286+40,691

4,761-13,209+17,971

TravelTotal

Impact of applying ASBJ 29+￥2.8 billion

ChangeChange3

Consolidated Statements of Income by Segment (Four-Year YoY Comparisons)From left to right: FY2019 Q1, FY2020 Q1, FY2021 Q1, FY2022 Q1（¥ billion)

Revenue from operations
192.4 187.2

152.0

59.6 60.1
54.1
48.7

46.8
42.3

111.3
37.2
31.5

Impact of applying ASBJ 29+¥2.8 billion
22.5

23.0
16.6
10.6 11.2

12.5

14.3

Urban

【Total】

Real Estate

18.8

16.2

9.2 11.0

3.5

0.1Entertainment Information andTransportation

29.5
21.9 19.1

16.2
2.1 3.9

3.1

TravelCommunication

International

HotelsTransportation

Technology

Operating Income

31.6 30.9

12.8 12.9

11.1

8.1 7.9 7.6

7.3 7.9

4.8

4.0
0.3 0.5 0.8 0.9

0.5

2.1

0.3

-2.6

-13.2

Transportation

1.7

0.3 0.3

-0.2

-0.5

Urban -7.2

0.0

Real Estate-4.9 -3.8

Entertainment Information andCommunication

TravelInternational

-5.2

-3.6

HotelsTransportation

Technology【Total】

4Outlook for Operating Income（FY2021 Q1→FY2022 Q1）••In FY2022 Q1, operating income was up ¥18.0 billion YoY because, while businesssegments continued feeling pandemic impact, the impact had lessened compared tothe same period last year.
The actual increase was ¥23.0 billion when taking into account the Covid-related
extraordinary losses (including fixed expenses during suspensions of operations andcosts associated with cancelling events) in both periods. In FY2021 Q1, theextraordinary losses totaled ¥10.1 billion. In FY2022 Q1, they totaled ¥5.0 billion.

FY2021 Q1

FY2022 Q1
4.8
COVID-19related losses

-0.3

-5.0

+¥18.0 billion+¥23.0 billion-13.2

COVID-19related losses

-10.1

-23.3

Urban Transportation +¥7.0 billion,
Entertainment +¥9.1 billion,
Travel +¥2.0 billion,
Hotels +¥2.6 billion
5Urban Transportation Results
Increase in revenue and income. The segment continued feeling pandemic impact (withfewer traveling amid a state of emergency), but the railway and automobile businesses
experienced a recovery in ridership compared to the slump of the same period last year.
(¥ million)

Q1 FY2022
Results

Revenue from operations

Q1 FY2021
Results

Change%37,24531,529+5,715+18.1%-534-7,187+6,653―Operating income[Breakdown by type of business](¥ billion)

Revenue from operations
Q1
FY2022
Results

Q1
FY2021Results

Railway

27.4

23.3

Automobile

7.6

Retailing
OthersOperating income
Q1
FY2022
Results

Q1
FY2021Results

+4.1

2.8

-1.5

+4.2

6.4

+1.2

-1.7

-3.4

+1.6

2.5

2.6

-0.2

0.2

0.1

+0.1

1.8

1.0

+0.8

-0.0

-0.1

+0.1

Y on YY on Y*Not including head office expenses /adjustments.

6

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

Passenger volumes (Thousands)*

Q1 FY2022
Results

Q1 FY2021
Results

Commuter pass

7,342

6,776

+566(+8.4%)

73,71064,717+8,992(+13.9%)

Workers

6,360

6,417

-56(-0.9%)

51,66754,713-3,046(-5.6%)

Students

982

359+623(+173.4%)

22,043

10,004 +12,039(+120.3%)

ChangeQ1 FY2022 Q1 FY2021
Results
Results

ChangeOther tickets

9,734

7,108 +2,626(+37.0%)

49,51836,667+12,850(+35.0%)

Total

17,077

13,885 +3,192(+23.0%)

123,228

101,385+21,843(+21.5%)

Hanshin Electric Railway
Fare revenues (¥ million)*

Passenger volumes (Thousands)*

Q1 FY2022
Results

Q1 FY2021
Results

Commuter pass

2,688

2,531

+156(+6.2%)

28,16025,416+2,743(+10.8%)

Workers

2,429

2,428

+0(+0.0%)

22,52322,784-261(-1.1%)

Students259

102+156(+151.7%)

5,637

2,631

+3,005(+114.2%)

Other tickets

3,313

2,436

+876(+36.0%)

18,313

13,868+4,445(+32.1%)

Total

6,001

4,968 +1,033(+20.8%)

46,47339,284+7,189(+18.3%)

ChangeQ1 FY2022 Q1 FY2021
Results
Results

Change＊ 1) Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
2) For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
3) Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway
4) For commuter passes, revenue and ridership were previously counted from the date of sale. As of fiscal 2022, they arecounted from the commencement date (the date from which the ticket is valid).

7

Real Estate Results
Increase in revenue: The segment continued feeling pandemic impact (with commercial
facilities temporarily closing amid a state of emergency), but compared to the same
period last year, it recorded higher rental income and higher sales of residential land anddetached houses.
Operating income dipped relative to the spike in the same period last year, which was
the result of selling commercial land.
(¥ million)

Q1 FY2022
Results

Q1 FY2021
Results

Change%Revenue from operations

46,80142,303+4,498+10.6%

Operating income

7,576

7,865

-289

-3.7%

[Breakdown by type of business](¥ billion)

Revenue from operations
Q1
FY2022
Results

Q1
FY2021Results

Real estate leasing

23.5

21.5

Real estate sales and others

27.4

24.6

Operating income
Q1
FY2022
Results

Q1
FY2021Results

+2.0

7.2

7.2

-0.0

+2.8

2.6

2.8

-0.2

Y on YY on Y*Not including head office expenses/adjustments.

8Entertainment Results
Increase in revenue and income: The segment continued feeling pandemic impact(restrictions on events amid a state of emergency), but in contrast to the same period
last year, when all events were postponed or cancelled, the sports business benefitted
from an upturn in Hanshin Tigers’ regular season games, and the stage businessbenefitted from an upturn in Takarazuka Revue shows.
(¥ million)

Q1 FY2022
Results

Q1 FY2021
Results

Change%Revenue from operations

16,6073,530+13,076 +370.3%

Operating income

3,967-2,602+6,569―[Breakdown by type of business](¥ billion)

Revenue from operations
Q1
FY2022
Results

Q1
FY2021Results

Sports

8.3

1.6

Stage

8.3

2.0

Operating income
Q1
FY2022
Results

Q1
FY2021Results

+6.7

2.7

-2.4

+5.1

+6.3

1.6

-0.0

+1.6

Y on YY on Y*Not including head office expenses /adjustments.

9

Information and Communication Technology results
Increase in revenue and income: In the broadcasting and communications business, thenumber of subsidiaries increased and there was a large order.
(¥ million)

Q1 FY2022
Results

Revenue from operations
Operating income

Q1 FY2021
Results

Change%14,285

12,459+1,826 +14.7%

939

810

+128 +15.9%

Travel results
Increase in revenue and income: The segment continued feeling pandemic impact(cancellations of international tours), but participation numbers for domestic tours
recovered relative to the slump of the same period last year. Revenue was further
increased by the application of the Accounting Standard for Revenue Recognition.
(¥ million)
Revenue from operations
Operating income

Q1 FY2022
Results
Impact of applying ASBJ 29+￥2.8 billion

Q1 FY2021
Results

Change

%

3,092

125

+2,967―-3,765-4,903+1,138―10

International Transportation results
Increase in revenue and income: Handling volume for air transport recoveredfrom the Covid-related slump, and with transportation demand outstripping
supply, sales prices increased.
(¥ million)

Q1 FY2022
Results

Q1 FY2021
Results

Change%Revenue from operations

29,461

18,814+10,647+56.6%

Operating income

1,651

12

+1,639―Hotels results
Increase in revenue and income: The segment continued feeling pandemic
impact (with some hotels temporarily closing amid a state of emergency), but
the accommodation and food/beverage businesses experienced a recovery, tosome extent, in user numbers compared to the slump of the same period lastyear.
(¥ million)

Q1 FY2022
Results

Q1 FY2021
Results

Change%Revenue from operations

3,941

2,142

+1,798 +83.9%

Operating income-3,621-5,196+1,575―11

Consolidated Balance Sheets
Q1 FY2022
Results

Net assets

Liabilities

Assets(¥ million)

FY2021Results

Current assets

311,027

325,307

Noncurrent assets

2,294,746

2,295,721

Total assets
Current liabilities
Long-term liabilities

Total liabilities

2,605,774 2,621,028
357,451
1,342,615

380,618
1,330,424

1,700,066 1,711,042

ChangeRemarks-14,280 Trade receivables：-14,206
Investment securities : -15,217-974 Property and equipment and intangible assets :+13,556-15,254

Accounts payable:-33,849
Long-term deferred contribution for
construction:+13,472
Q1
FY2022
Results

FY2021Results

ChangeDebt

814,378824,622-10,244

Bonds

197,000

197,000-0Commercial paper

50,00030,000 +20,000

Lease obligations

12,274

11,425-23,167+12,191-10,976

Interest-bearing debt

1,073,652

1,063,048 +10,604

Payment dividend:-6,063

Shareholders’ equity

830,607

833,640-3,033 Net income attributable to owners of the

Accumulated othercomprehensive income

30,44633,511-3,064 securities -3,050

Non-controlling interests

44,65342,834+1,819905,707909,985-4,278

33.0%

33.1%

-0.1p

Total net assets
Equity ratio+848

parent:+3,204

Valuation difference on available-for-sale

12

Ⅱ. Forecast for fiscal 2022
(Ending March 2022)13

Consolidated Statements of Income (Summary)(¥ billion)

FY2022
Forecasts

FY2022
Forecasts①(As of May)②

Impact of applying ASBJ 29+¥81.0 billion

Revenue from operations

770.0

ChangeRemarks

=①-②

③

800.0

-30.0
(-3.8%)The Travel segment will
perform less well than initially
expected.

Operating income

30.0

23.0

+7.0
(+30.4%)

Ordinary income

23.0

16.0

+7.0
(+43.8%)Net income attributable toowners of the parent

FY2021Results

Change=①-③

568.9+201.1The Entertainment, Hotels, andInternational Transportation
segments will perform better
than initially expected.

2.1

+27.9

This increase will accompany
the increase in operating
income.

-7.6

+30.6

-36.7

+48.7

This increase will accompany
the increase in ordinary income,along with an increase ingovernment aid (e.g.,
employment adjustment
subsidies).

12.0

6.0

+6.0
(+100.0%)

Capital Expenditures

137.5

137.5

―

108.5

+29.0

Depreciation and amortization

60.7

60.7

―

55.7

+5.0

Financial balance (1) – (2)

-8.3

-8.3

―

-7.8

-0.5

Interest and dividend income (1)

1.1

1.1

―

1.1

-0.0

Interest expense (2)

9.4

9.4

―

8.9

+0.5

(Reference)14

Consolidated Statements of Income (Breakdown for each business segment)(¥ billion)[Upper table]
Revenue fromoperations[Lower table]
Operating income

FY2022
Forecasts

Impact of applying ASBJ 29+¥81.0 billion

Total

①

FY2022
Forecasts(As of May)②

Change=①-②Remarks

FY2021Results③

Change
₌①-③

770.0

800.0

-30.0

568.9

+201.1

30.0

23.0

+7.0

2.1

+27.9

173.7

176.3

-2.6

156.9

+16.8

11.3

12.7

-1.4

-5.1

+16.4

244.1

245.6

-1.5

188.4

+55.7

31.8

30.9

+0.9

28.9

+2.9

59.2

56.4

+2.8

42.2

+17.0

5.6

2.2

+3.4

-2.3

+7.9

61.6

59.4

+2.2

58.1

+3.5

6.0

5.6

+0.4

5.6

+0.4

108.7

144.0

-35.3

12.0

+96.7

-8.7

-8.0

-0.7

-7.4

-1.3

87.0

82.9

+4.1

85.6

+1.4

2.8

1.6

+1.2

2.3

+0.5

28.5

28.8

-0.3

19.1

+9.4

-15.7

-18.7

+3.0

-17.9

+2.2

(Breakdown for each business segment)-¥4.0 billion
Urban
Transportation

Real EstateEntertainment-¥3.0 billion yen

Information andCommunication
Technology
Travel+¥94.0 billion

International
Transportation

Hotels

The railway and automobile businesses are seeing
less ridership than initially expected.
Revenue decrease: Extension to state of emergency
will lead to greater-than-expected impact from
temporary closures of commercial facilities.
Income increase: Less expenses, expenses
classified as extraordinary losses.
Audiences for Hanshin Tigers’ regular season
games and Takarazuka Revue shows are bigger
than initially expected.

In the broadcasting and communications business,there was a large order.

Participation numbers for domestic tours are fallingshort of initial expectations.

Handling volume for air transport is better thaninitially expected.
Revenue decrease: Extension to state of emergency
will lead to greater-than-expected impact from
temporary closures of some hotels.
Income increase: Less expenses, expenses
classified as extraordinary losses.

15

COVID-19 Impact in Each Segment (assumptions for Fiscal 2022 forecasts)
Stated below are the assumptions underlying the full-year forecasts. These assumptions take into account Q1
performance.

Urban
Transportation

Real Estate【Railway】
Given the impact of the priority preventative measures, the decline in revenue from other (non-season)tickets will ease after the state of emergency is lifted. By March 2022, the revenue will be just 10–20%
lower than result for the same period in fiscal 2019.
The impact on worker commuter pass revenue will persist throughout the period (the revenue will be around
10% lower than the fiscal 2019 level).
The period-average for student commuter pass revenue will be around 10% lower than the fiscal 2019 level.
【Automobile】
For transit buses, the impact will be similar to that for railway.
For airport shuttle buses, the impact will depend on outlook for air travel (demand for international flights at
Kansai International Airport will not recover within the fiscal year).
【Real estate leasing】
Performance will recover significantly from the level of Q1, when the state of emergency (store closures,
reduced hours) impacted the segment.

Entertainment【Sports】
Pro baseball: For Q2 onward, we are sticking with the forecasts announced in May. Namely, baseballrevenue will recover provided that there will be around 20,000 sellable seats for each Hanshin Tigers’ regularseason game.
【Stage】
Takarazuka Revue: For Q2 onward, we are sticking with the forecasts announced in May. Namely, theater
production revenue will recover provided that theaters will return to full capacity (excluding frontmost seats).

TravelFor domestic tours, in view of recent performance, business will recover significantly from Q3 onward (fullyear performance will be around the fiscal 2019 level).
Demand for international tours will not recover within the fiscal year.

HotelsAccommodation: Given recent demand trends in Japan, we expect performance to steadily recover from Q2.
Inbound demand is unlikely to recover in the period (for hotels managed directly by Hankyu Hanshin
Hotels※, domestic demand as of March 2022 will be around 40% less than it was in the same period in fiscal
2019).
Food/beverage: Performance will gradually recover from Q2.
※ Excludes hotel locations opened in fiscal 2020 or later.

16

Outlook for Operating Income（FY2021→FY2022）••

For fiscal 2022, on the assumption that many businesses will see a reasonable
recovery from the effects of the pandemic, we expect to achieve ¥30.0 billion in
operating income, ¥27.9 billion higher than in fiscal 2021.
However, the actual year-on-year increase will be ¥41.2 billion when taking into
account the Covid-related extraordinary losses (including fixed expenses duringsuspensions of operations and costs associated with cancelling events). In FY2021,
the extraordinary losses totaled ¥19.4 billion. For fiscal 2022, we are expecting suchlosses to amount to ¥6.1 billion.
COVID-1930.0
related losses

-6.1
23.9

+¥27.9 billion+¥41.2 billion

2.1

COVID-19related losses-17.3

FY2021-19.4

FY2022
Urban Transportation +¥17.4 billion,
Real Estate +¥4.2 billion,
Entertainment +¥12.0 billion,
Travel +¥2.5 billion, Hotels +5.3 billion

17[Urban Transportation] Railway Performance Forecasts
Hankyu Corporation

Fare revenues (¥ million)*
FY2022
Forecasts
Commuter pass

FY2021Results

ChangePassenger volumes (Thousands)*
FY2022
Forecasts

FY2021Results

Change29,56328,093+1,469 (+5.2%)

299,789

277,068+22,721 (+8.2%)

Workers

25,682

25,625+57(+0.2%)

211,718

216,044-4,325(-2.0%)

Students

3,880

2,468

+1,412(+57.2%)

88,071

61,024+27,046(+44.3%)

Other tickets

48,69540,982+7,713 (+18.8%)

246,659

208,035+38,624(+18.6%)

Total

78,25969,075+9,183 (+13.3%)

546,449

485,104+61,345(+12.6%)

Hanshin Electric Railway
Fare revenues (¥ million)*
FY2022
Forecasts
Commuter pass

FY2021Results

ChangePassenger volumes (Thousands)*
FY2022
Forecasts

FY2021Results

Change10,76910,476+292(+2.8%)

111,649

107,336+4,312(+4.0%)

Workers

9,680

9,750

-69(-0.7%)

88,52390,809-2,286(-2.5%)

Students

1,089

726

+362(+49.9%)23,126

16,526+6,599(+39.9%)

Other tickets

16,926

13,725+3,200(+23.3%)

93,00076,214+16,785(+22.0%)

Total

27,69624,202+3,493(+14.4%)

204,649

183,550+21,098(+11.5%)＊ 1) Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.
2) For Hankyu Railway, “other ticket revenue/ridership” includes revenue/ridership associated with the PiTaPa usage sections.
3) Sum of tier 1 and tier 2 railway operators for both Hankyu Corporation and Hanshin Electric Railway
4) For commuter passes, revenue and ridership were previously counted from the date of sale. As of fiscal 2022, they arecounted from the commencement date (the date from which the ticket is valid).

18

Management Indicators■Management Indicators
FY2021Results

FY2022
Forecasts(As of May)FY2022
Forecasts(As of Jul.)

Operating income¥2.1 billion¥23.0 billion¥30.0 billion

EBITDA※1¥60.3 billion¥86.0 billion¥93.0 billion¥1,063.0 billion¥1,160.0 billion¥1,150.0 billion

Interest-bearing debt /EBITDA ratio

17.6 times

13.5 times

12.4 times

D/E ratio※2

1.2 times

1.3 times

1.3 times-¥36.7 billion¥6.0 billion¥12.0 billion

-4.1%

0.7%

1.4%

¥1,035.5 billion¥1,135.0 billion¥1,125.0 billion

17.2 times

13.2 times

12.1 times

Interest-bearing debt

Net income attributable toowners of the parent
ROE(Reference)
Net interest-bearing debt※3

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

19[Reference] Consolidated Statements of Income (Breakdown by type of business)
Revenue from operations(¥ billion)

FY2022
FY2022
Forecasts Forecasts①(As of May)

Change=①-②②

FY2021Results③

Operating income
Change=①-③

FY2022
FY2022
Forecasts Forecasts(As of May)①

Change=①-②②

FY2021Results③

Change=①-③

Urban Transportation

173.7

176.3

-2.6

156.9

+16.8

11.3

12.7

-1.4

-5.1

+16.4

[Breakdown]
Railway
Automobile
Retailing
Others

125.0
36.9
12.2
10.1

126.3
38.2
12.6
9.0

-1.3
-1.3
-0.4
+1.1

112.3
32.7
14.0
8.8

+12.7
+4.2
-1.8
+1.3

19.5
-3.6
0.9
0.6

20.3
-3.1
0.9
0.6

-0.8
-0.5
-0.0
+0.0

7.9
-6.8
0.8
0.7

+11.6
+3.2
+0.1
-0.1

Real Estate

244.1

245.6

-1.5

188.4

+55.7

31.8

30.9

+0.9

28.9

+2.9

[Breakdown]
Real estate leasing
Real estate sales
and others

114.7
146.9

115.6
147.3

-0.9
-0.4

99.7
105.7

+15.0
+41.2

28.9
10.7

28.6
10.0

+0.3
+0.7

29.2
8.3

-0.3
+2.4

Entertainment

59.2

56.4

+2.8

42.2

+17.0

5.6

2.2

+3.4

-2.3

+7.9

[Breakdown]Sports
Stage

27.2
31.9

26.5
29.8

+0.7
+2.1

21.1
21.0

+6.1
+10.9

1.3
5.7

-0.1
3.7

+1.4
+2.0

-2.5
1.7

+3.8
+4.0

Note: Segment totals may not match the aggregate of the amounts for each type of business due to separate
head office expenses / adjustments.

20[Reference] Recent performance in railways■Ridership (compared to same period of fiscal 2019 ）《Hankyu Corporation》（％）

Commuter pass

Other tickets

0.0- 20.0- 40.0SOE※- 60.0SOE

SOE- 80.0《Hanshin Electric Railway》（％）

Commuter pass

Other tickets

0.0- 20.0- 40.0SOE- 60.0SOE

SOE- 80.0※ The state of emergency

21

[Reference] Applying the Accounting Standard for Revenue Recognition (ASBJ 29)
 What is the new revenue standard?
 ASBJ 29 specifies (1) when and (2) how a reporter will recognize revenue.
 Based on International Financial Reporting Standards, ASBJ was enforced for all companies in Japan in April
2021 (the start of fiscal 2022).
 Summary of standard① The reporter must recognize revenue when the underlying sales or usage occurs (when thecustomer buys the good or uses the service).
② If the reporter provides the good or service to the customer directly(Note 1), then it must recognize the revenue atthe gross amount(Note 2). If the good or service is provided by an agent, then the reporter must recognize therevenue at the net amount(Note 2).
(Note 1)
Examples of criteria: The reporter is primarily responsible for fulfilling the promise to provide the specified good orservice; the reporter has discretion in establishing the price for the good or service; the reporter has inventory risk
before the specified good or service has been delivered.
(Note 2)Gross amount : All gross revenue from the sale is recorded as revenue from operations, without deducting sales costs.
Net amount
Sales costs
are deducted
frombygross
and the difference is recorded as revenue from operations.
 Examples
of :grouptransactions
affected
the revenue
new standard

Segment

Transaction

Current practice

New practice

Impact on revenue, income forfiscal 2022

Report revenue
prorated by month,
starting from themonth ofcommencement

No impact on revenue or income(only the timing of recognitionchanges)①

Urban
Transportation

Commuterpass

Report revenue
prorated bymonth, startingfrom month ofsale②

TravelOrganized
tours※

Report revenue on
net basis

Report revenue ongross basis

Revenue approx.+¥94.0 billion
No impact on income

②

Urban
Transportation

Sales andpurchase inretailingbusiness

Report revenue ongross basis

Report revenue on
net basis

Revenue approx.-¥4.0 billion
No impact on income※The transactions most affected are those in the travel business related to organized tours.

22