https://www.hankyu-hanshin.co.jp/en/ | Hankyu Hanshin Holdings | 2023 |
Hankyu Hanshin Holdings Group Management Philosophy
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 | |
◎ Customers First | Everything we do is for the customer. That's where it all starts. | |
◎ Sincerity | Gain customers' confidence by always being sincere. |
- Foresight & Creativity With our pioneer spirit and flexible thinking, we create a new value.
- Respect for People Everyone is absolutely invaluable to the Group.
PrinciplesHow to act to uphold our values and fulfil our mission
1 We treasure encounters with people, and do our best in the position of a customer.
21 We abide by the laws and regulations, and act with a clear awareness of our social responsibilities.
31 We take pride and responsibility in our work, and carry it out promptly.
41 We are not concerned with what is just before us, but think from medium- and long-term perspectives.
51 We are not satisfied with present conditions, but fix our eyes on the future and act.
61 We have caring feelings and respect each other.
71 We communicate in a lively way and create a workplace with a positive atmosphere.
81 We cooperate with one another for the prosperity of the Group.
Message from the Top Management
Our corporate group follows a philosophy that we express as follows: By delivering safety and comfort along with dreams and excitement, we create satisfaction among our customers and contribute to society. The group conducts businesses in six core segments: Urban Transportation, Real Estate, Entertainment, Information and Communication Technology, Travel, and International Transportation.
In May 2022, we unveiled a long-term vision titled Toward 2040. This vision defines the kind of corporate group we aspire to be: one that contributes to a sustainable society and grows alongside the Kansai region. The vision also assumes that ongoing large projects will start contributing to our consolidated growth in the 2035-2040 period. One example is Shibata 1 Project, which involves rebuilding Hotel new Hankyu Osaka and Hankyu Terminal Building and redeveloping areas such as Hankyu Sanbangai. One other project involves building the Naniwasuji Connection Line and Shin-Osaka Connection Line, which will strengthen connectivity between Osaka Umeda and Shin-Osaka(Shin-Osaka has been designated as a hub for emergency urban regeneration).
Alongside Toward 2040, we also unveiled a medium-term plan to set out specific actions aligned with the long-term vision. The plan covers a four-year period from the year ending March 2023 to the year ending March 2026. By the end of the period, we aim to have returned to our pre-pandemic growth trajectory and to have prepared a firm foundation for achieving our long-term vision. With a view to achieving these medium-term goals, we will take the following actions. In the current year (ending March 2024), we will focus on recovering profit growth in our existing businesses, building on our success in fortifying the revenue structure of these businesses. Meanwhile, we will continue developing our newer businesses, which have seen decent growth over the past several years. For example, in the Real Estate segment, we will develop business overseas. In the Entertainment segment, we will enhance streaming services. For FY2026 and beyond, we will step up investment in growth projects in light of indications that the pandemic is coming to an end. We will also press ahead with a digital transformation project called the Hankyu Hanshin DX Project.
Alongside these actions, we will continue delivering on our commitment to sustainable corporate development, as enshrined in our Sustainability Declaration. By addressing social issues through our business, we will build long-term sustainable value.
We appreciate your continued understanding and support as our Group works as one to meet the expectations of all our stakeholders.
Hankyu Hanshin Holdings, Inc.
Kazuo Sumi
Chairman and Representative Director,
Group Chief Executive Officer
Yasuo Shimada
President and Representative Director
1 Group Guide 2023 | 2 |
The Group's History
Hankyu
1907
1910 〉Beginning of railway operations
(Takarazuka Line [Umeda-Takarazuka] and Minoh Line [Ishibashi-Minoh])
〉Beginning of real estate sales business
(Beginning of sales of Ikeda Muromachi Residential Land Plots)
1913 〉Formation of Takarazuka Girls' Revue (currently Takarazuka Revue Company)
1914 〉Implementation of Takarazuka Revue's first performance
1926 〉Opening of old Takarazuka Hotel (End of operations in March 2020; Relocation and reopening in June 2020)
1929 〉Completion of Umeda Hankyu Building (Opening of Hankyu Department Store, Asia's first railway terminal department store)
1947 〉Separation of department store sector and related businesses to establish Hankyu Department Stores, Inc.
1948 〉Launch of airline agency business (Conclusion of Japan's first agency agreement with Pan American Airways)
Hanshin
1899 〉Founding of Settsu Electric Railway (currently Hanshin Electric Railway Co., Ltd.)
1905 〉Beginning of railway operations (Kobe [Sannomiya]-Osaka [Deiribashi])
1909 〉Launch of land and buildings leasing business (Completion of 30 rental houses in front of Nishinomiya Station)
1924 〉Opening of Koshien Stadium (later renamed 'Hanshin Koshien Stadium')
1933 〉Opening of Hanshin Mart at Hanshin Umeda Station (Full-scale entry into retail business in a terminal) (Closing in September 1941)
〉Completion of Sannomiya Hanshin Building
(Lease to Kobe Sogo Department Store; Full-scale entry into building leasing business)
1935 〉Establishment of Osaka Baseball Club (Osaka Tigers, currently Hanshin Tigers)
1937 〉Beginning of business on Mt. Rokko (Opening of Rokkosan Country House)
1940 〉Opening of Hanshin Mart (Osaka-ekimae underground) (later renamed 'Hanshin Department Store'; currently 'Hanshin Department Store Umeda Main Store')
1948 〉Launch of airline agency business
Group Overview
Our corporate group supports people's lives, colors their lives, and proposes enriched lifestyles.
Throughout its long history of over 100 years, the Hankyu Hanshin Holdings Group has continued to offer unprecedented services in a broad range of fields, from the railway business as its basis to the development of houses and commercial facilities and the provision of thrilling entertainment, such as that provided by the Hanshin Tigers baseball team and the Takarazuka Revue. We have thereby contributed to high-quality community building, primarily in line-side areas, and have brought a new perspective to society, accumulating many achievements. Through these activities, we have continued to deliver our customers "Safety and Comfort" to support their lives and "Dreams and Excitement" to color their lives.
We will continue to provide high-quality services through the concerted efforts of the Group, leveraging our brand that has been nurtured over time and our know-how of community building.
Customer Satisfaction Survey | Questionnaire about Areas to Live | ||
(in the Kansai Region) | |||
In the Japanese Customer Satisfaction Index (JCSI),* Hankyu | With convenience provided by railway | ||
Corporation has ranked top in the suburban railway category for 14 | networks between main cities in the | 1st : Umeda/Osaka | |
consecutive years, from FY2010 to FY2023. | Kansai region and abundant living | 2nd : Nishinomiya-Kitaguchi | |
The same index also ranked Takarazuka Revue Company first, not only | infrastructure, the areas along the | ||
3rd : Shukugawa | |||
in the entertainment category from FY2017 to FY2019 and in FY2022 | Group's railway lines are highly rated by | ||
but also in overall rankings among 328 companies/brands from 34 | people as areas where they wish to live. | 4th : Okamoto | |
industries in FY2022. | Our power to enhance the value of | 5th : Takarazuka | |
* The JCSI is based on one of the largest-scale customer satisfaction surveys in Japan, | line-side areas is among our strengths. | ||
* Questionnaire survey conducted on MAJOR7 | |||
conducted by Service Productivity & Innovation for Growth (SPRING) under the Japan | |||
Productivity Center. The survey evaluates companies and brands using statistical | (a website run by seven major Japanese real estate companies) in | ||
techniques based on responses from over 120,000 users. | October 2022 | ||
Core Businesses and Companies
We have core businesses in six business domains: Urban Transportation, Real Estate, Entertainment, Information and Communication Technology, Travel, and International Transportation. Further, under the direction of Hankyu Hanshin Holdings, Inc., which supervises the Group's management, these businesses are operated by five core companies: Hankyu Corporation, Hanshin Electric Railway Co., Ltd., Hankyu Hanshin Properties Corp., Hankyu Travel International Co., Ltd., and Hankyu Hanshin Express Co., Ltd. Through these core businesses and companies, we will foster organic growth across the entire Group.
〉Approval as Japan's first IATA air cargo agency
1952 〉Establishment of Hankyu Realty Co., Ltd. (currently Hankyu Hanshin Properties Corp.)
1960 〉Establishment of Hankyu Express International Co., Ltd.
(currently Hankyu Travel International Co., Ltd.)
2004 〉Entry into real estate investment trust (REIT) business
1950 〉Approval as IATA air cargo agency
1967 〉Opening of Hotel Hanshin (currently Hotel Hanshin Osaka) 1991 〉Opening of urban-type CATV 'Channel Wave Amagasaki'
2006 〉Conclusion of master license agreement of Billboard brand
Core Business Segments
Hankyu Hanshin Holdings
Urban | Real Estate | Entertainment | Information and | ||
Transportation | Communication | ||||
Technology | |||||
Hankyu Corporation
Hankyu Hanshin
Properties
Travel
Hankyu Travel International
International Transportation
Hankyu Hanshin
Express
2006 Establishment of Hankyu Hanshin Holdings, Inc.
2008 | 〉Opening of Hankyu Nishinomiya Gardens |
2009 | 〉Beginning of Operations of the Hanshin Namba Line |
(between Nishikujo and Osaka-Namba) | |
2012 | 〉Completion of the Umeda Hankyu Building |
(currently 'Osaka Umeda Twin Towers North') | |
2022 | 〉Completion of Osaka Umeda Twin Towers South |
Hanshin Electric Railway
- As for our Real Estate Business, Hankyu Corporation and Hanshin Electric Railway collaborate with Hankyu Hanshin Properties to promote urban development of real estate owned by Hankyu Corporation and Hanshin Electric Railway for rent and development in cooperation with transportation networks, local governing bodies and others in Umeda and their line-side areas.
Consolidated Performance Trends
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | |
Operating revenue (¥billion) | 791.4 | 762.7 | 568.9 | 746.2 | 968.3 |
Operating profit (¥billion) | 114.9 | 95.2 | 2.1 | 39.2 | 89.4 |
In FY2023, despite the lingering impact of the COVID-19 pandemic, the Group achieved a year-on-year increase both in operating revenue and operating profit. The increase is explained mainly by a certain level of recovery of many of the Group's businesses and a significant increase in orders for our services in the Travel business, especially orders placed by local governments for support services for COVID-19 patients recuperating at home.
3 Group Guide 2023 | 4 |
Sustainability Declaration | ▶For more details, please visit our website. |
We have made the Hankyu Hanshin Holdings Group Sustainability Declaration, which outlines the Group's commitment to addressing various challenges in order to help realize a sustainable society.
Create a future grounded in "Safety and Comfort," and
General a future colored by "Dreams and Excitement."
Principles For over a hundred years, we have sought to cultivate communities and enrich lives.
Leveraging this experience, we commit ourselves to addressing social and environmental challenges and working toward a sustainable future, one that offers a fulfilling, joyful life to all and inspires the next generation to dream with hope.
Priority issues (materiality matrix) Six priority issues to address as part of our sustainable business practices
Long-Term Vision: Toward 2040 | ▶For more details, please visit our website. |
In May 2022, we formulated the "Hankyu Hanshin Holdings Group Long-Term Vision: Toward 2040," which defines the Group's ideal image and strategies for achieving it.
Group's long-term ideal
- We are going further with our development of communities, providing manifold value in the form of safe, comfortable urban lifestyles and experiences that stimulate dreams and excitement. At the same time, by expanding the areas in which we do business, we will raise customer satisfaction and enhance corporate value sustainably.
- We will meet the expectations of customers, regional communities, and other stakeholders, and contribute to bringing about a more sustainable society.
Through these efforts we aim to be a corporate group that grows hand in hand with Kansai
Safe, reliable infrastructure
Provide railways and other infrastructure that are safe and disaster-resilient. Ensure that anyone can safely access our facilities and services.
Empowering individuals
Provide an inclusive workplace that values diversity and taps into individual talent. Cultivate tomorrow's leaders for society.
Thriving communities
Help build sustainable communities with rich natural and cultural heritage, making great places to live in, work in, and visit.
Environmental protection
Conduct eco activities that contribute to a carbon-neutral world and a circular economy.
Life designs for tomorrow
Promote refined and inspired lifestyle solutions for a better tomorrow.
Robust governance
Act honestly and in good faith, as stakeholders expect us to do.
Strategies for achieving the ideal
Strategy 1 | Make our line-side communities the absolute best among the | Urban Transportation, Real Estate, etc. |
(core strategy) | Kansai networks |
- Focus on making our line-side areas much more attractive by engaging in community building and actively leveraging digital innovations with the aim of coping with the shrinking and aging population
- Strengthen our line-side areas' connections with land transport links (Tokyo-Nagoya-Osaka) and global dynamism by promoting the Naniwasuji Connection Line and Shin-Osaka Connection Line Project, and use new projects (e.g. Shibata 1 Development) to make Osaka-Umeda as a whole a world-class urban environment in line with the Umeda Vision
Strategy 2 | Make our content as compelling as possible | Entertainment and Travel |
- Make our content more compelling while expanding our customer base and actively leveraging digital technologies
Strategy 3 | Expand the coverage of our line-side business model | Real Estate and other businesses |
- Expand our line-side business model (e.g. building abundant communities) beyond line-side areas by utilizing the know-how and achievements that we have accumulated through strategies 1 and 2
Strategy 4 | Increase market share by providing high value-added services | Information and Communication Technology |
and International Transportation |
- Use our technologies and know-how to expand the value scope of our businesses
- Provide high-quality, competitive services to increase our business scale and market share
In addition to pursuing these four strategies, we will strongly promote our efforts to implement
the Hankyu Hanshin DX Project and to contribute to the achievement of the SDGs and the 2050 carbon neutrality goal.
Hankyu Hanshin Dreams and Communities of the Future Project
As part of the Group's commitment to creating communities that people will truly want to live in, we have operated the Hankyu Hanshin Dreams and Communities of the Future Project since April 2009.
Management targets
Financial and non-financial KPI targets for FY2031
Financial growth concept envisioned for around 2035 to 2040
Basic Policy | We intend to promote the creation of communities along our line-side areas | |||
that people will truly want to live in. | ||||
Priority Fields | Sustainable Community Development | Tomorrow's Leader Development | ||
As a Group with strong local roots, we are | We are creating opportunities for the | |||
committed to sustainable community | healthy development of ambitious | |||
building with environment-friendly | children, upon whose shoulders the | |||
developments that provide local residents | task of building the communities of | |||
with security, peace of mind, and cultural | the future rests. | |||
enrichment. |
< Financial KPI targets >
Business profit*
Profitability ¥130.0 billion
plus something extra
Interest-bearing-debt/ | |
Financial | EBITDA ratio |
soundness | Between 5 and 6 |
efficiency | ROE |
7% range in the | |
Capital | |
medium to long term |
< Non-financial KPI targets >
- Rate of CO₂ emissions cuts: 46% down from FY2014 level
- Zero culpable incidents in our railway operation business
- Continued improvement in employee satisfaction
- Percentage of women in management positions: Around 10%
- Percentage of women among new hires: Always more than 30%
We envision that, during the above period, we will further increase our business profit from the FY2031-target level (¥130.0 billion plus something extra) by earning profits from major development projects that will be completed and lead to the start of business operations during the period and by further promoting the Hankyu Hanshin DX Project.
5 Group Guide 2023
* Business profit = Operating profit + Equity-method gains related to overseas business investments (in real estate)
6
Urban Transportation
Connecting railways, buses and taxis to provide a variety of transportation services that realize safety, reliability and comfort
By connecting railways, buses and taxis, we have formed a large network centered on two companies -Hankyu Corporation and Hanshin Electric Railway-in the Kansai region, mainly in the Osaka, Kobe and Kyoto areas. In addition, we are enhancing the value of line-side areas by realizing synergistic benefits through the integrated management of transportation advertising and retail businesses, which run merchandising facilities inside and near railway stations.
Railway Operations
Extensive Railway Network Linking Osaka, Kobe, Kyoto and
Various Other Areas in the Kansai Region
These operations form a network in the Kansai area that centers on the railway lines of Hankyu Corporation and Hanshin Electric Railway. Hankyu Corporation's railway lines link Osaka (Umeda) with Kobe, Takarazuka, and Kyoto. Meanwhile, Hanshin Electric Railway is the only private (non-JR) railway operator with railway lines that directly link Kobe with Osaka's major northern and southern terminals, which are Osaka-Umeda and Namba, respectively.
Buses & Taxis
Providing Bus and Taxi Services Mainly in Areas Along the
Hankyu and Hanshin Lines in Collaboration with Railway Services
Hankyu Bus and Hanshin Bus aim to offer greater convenience to customers by providing various services and tools, including bus location services, which enable real-time checking of the status of buses operating on routes, and an in-house IC passenger card named "hanica." Moreover, all Hankyu Taxi and Hanshin Taxi cabs accept various forms of electronic payment to cater to diversifying payment needs. We are also promoting eco-driving techniques out of concern for the environment.
Retailing
Providing Retail Services Inside and Near Railway Stations
Inside and near railway stations on the Hankyu and Hanshin lines, we operate COLOR FiELD cosmetics and clothing shops, DOUBLEDAY furniture and interior goods shops, Seijo Ishii franchise supermarkets, and other shops. In addition, we partner with outside companies to provide a wide selection of shops, thereby offering greater convenience to customers who use our railway stations.
Advertising
Effectively Leveraging the Vast Reach of Transportation Advertising
We provide customers with value-added spaces through a wide lineup of transportation advertising media (such as digital signage, signboards, and posters) in trains and stations. Moreover, we effectively leverage our retail business's contact with customers and manufacturers and the vast reach of the transportation advertising business to promote goods sold in shops inside and near our stations on transportation advertising media or in event spaces.
Real Estate
Contributing to the creation of appealing towns and offering enriched lifestyles
Since its early days, the Real Estate Business has focused on building attractive towns and cities along railway lines, and shared its growth with the Urban Transportation Business. Our operations range widely, from developing, leasing, and administering commercial facilities and office buildings that create vibrant communities, to providing quality residences that match each person's lifestyle. We even run hotels that offer guests the highest level of hospitality. We are actively committed to creating new communities through future-oriented initiatives.
Development and Leasing
Promoting Diverse Development Projects and Running Various Commercial Facilities and Office Buildings
In Osaka-Umeda, we are promoting the Umekita Phase II Development Project (GRAND GREEN OSAKA) with the aim of putting into practice our community building concept of fusing greenery and innovation. We have also initiated Shibata 1 Development to increase the value of the area centered around Hankyu Osaka-umeda Station. In the leasing business, we own many commercial facilities and office buildings, primarily in Osaka-Umeda and areas served by the Hankyu and Hanshin lines, including Osaka Umeda Twin Towers, GRAND FRONT OSAKA, HERBIS OSAKA and HERBIS ENT, and Hankyu Nishinomiya Gardens. The total area of our leasing property is approximately 2.20 million square meters.*
* As of March 2023
Sales
Offering Homes that Realize Customers' Dreams Mainly through Sales under the "Geo" Brand
"Geo" brand condominiums are designed from the customer's point of view to have refinement and quality and to arouse a stronger feeling of attachment in the residents over time. We also combine our long-standingknow-how about line-side area development with the concept of "Geo" residences to promote the "Geo Garden" brand of detached houses. With these as our key brands, we help our customers' dreams come true by offering dream homes to them.
Overseas Business
Expanding into ASEAN Countries and the U.S.
Leveraging our track record in Japan, we have been participating in projects to sell approximately 50,000 houses* in the five countries of Thailand, Vietnam, the Philippines, Indonesia, and Malaysia. Through these projects, we aim to continue to expand our real estate sales business overseas.
In Indonesia, we also newly obtained Central Park Mall, a large-scale commercial facility, and part of three office buildings in downtown Jakarta. Since then, we have been involved in business operations there. In addition to operating in these ASEAN countries, we also acquired a multi-family property in the U.S. through our local subsidiary. We are therefore actively promoting our overseas real estate business.
* As of April 2023
Hotels
Japan's Leading Hotel Chain Operator
With a wide variety of hotels, from comfortable hotels designed for a better night's sleep to large-scale urban hotels providing meal and banquet services at restaurants and luxurious hotels for enjoying the extraordinary, we offer the best in hospitality tailored to our guests' needs.
7 Group Guide 2023 | 8 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Hankyu Hanshin Holdings Inc. published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 04:11:04 UTC.