INTEGRATED REPORT 2023

Securities code: 9042

Group Business Plan Framework

Contributing to a Sustainable Society

Communities

Employees

Partners

Creditors

Next

Customers

Shareholders

generation

Sustainably Enhance Corporate Value

Long-Term Vision

Medium-Term Management Plan

Sustainability Declaration

Group Management Philosophy

Group Management Philosophy

Group anagement 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

Sincerity

Everything we do is for the customer.

Gain customers'confidence

That's where it all starts.

by always being sincere.

Foresight & Creativity

Respect for People

With our pioneer spirit and flexible

Everyone is absolutely

thinking, we create a new value.

invaluable to the Group.

Principles

How to act to uphold our values and ful ll our mission

Group Management Philosophy

Sustainability Declaration

See page 45 for details.

Long-Term Vision

Medium-Term Management Plan

See pages 25‒30 for details.

Our value to society

The core elements underlie our pursuit of sustainable growth

The vision and strategy for the Group's sustainable growth, and the specific plans for their implementation

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

1

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

2

Profile

Profile

Creating Real Value:

Our Story

Creating Real Value:

The Processes

Creating Real Value:

The Foundations

Financial Section and

Corporate Data

Message from the Chairman

Contents

Kazuo Sumi

Chairman and

Representative Director,

Group Chief Executive

Officer

Editorial Policy

On the Publication of

Our Integrated Report

In keeping with the Hankyu Hanshin Holdings Group's management philosophy, we remain committed to delivering safety and comfort as well as dreams and excitement as a means of maintaining customer satisfaction while contributing to society at large. At the same time, we are maintaining our focus on achieving Long-Term Vision: Toward 2040, the concept we formulated in 2022 that encompasses strategies grounded in sustainable management as set forth in our Sustainability Declaration.

In Hankyu Hanshin Holdings Integrated Report 2023, we have presented both financial and non- financial information in an integrated manner in order to provide stakeholders with detailed yet easy-to-understand explanations of the policies and strategies we are implementing to enhance our corporate value over the medium and long terms.

In this report, our fifth since our inaugural edition was published in fiscal 2019, we have introduced new disclosures on our Scope 3 CO₂ emissions (see page 91). We have done so in acknowledgment of the importance of efforts to reduce emissions attributable to the supply chain and other such sources. We also report on the roundtable discussion we have held with outside directors (see page 85) to address the current status and future challenges of our Group's focus on sustainable management. Through these new additions, we have sought to enrich the content of this publication by addressing matters of broad market interest.

We trust this report will help to deepen your understanding of our Group and its initiatives.

We look forward to your continued support in the years ahead.

October 2023

00 Pro le

  • Group Business Plan Framework
    2 Group Management Philosophy
  • Message from the Chairman
    On the Publication of Our Integrated Report
  • Value Creation Trajectory
    7 Business Overview
    9 Service Area

13 Financial Highlights / Non-Financial Highlights

01 Creating Real Value: Our Story

17 Value Creation Process (Overall Long-Term Vision)

19 Message from the President

25 Long-Term Vision: Toward 2040

27 Outline of Our Medium-Term Management Plan (Fiscal 2023‒2026)

31 Special Feature 1 Umeda and Line-Side Communities Are Driving Growth in Accordance with the Long-Term Vision

35 Special Feature 2

Another Driver of Growth in Line with the Long-Term Vision (Overseas Real Estate)

37 Special Feature 3

The Pursuit of Safety and

Peace of Mind in the Railway

Business

40 Special Feature 4

Working toward Carbon

Neutrality

02 Creating Real Value: The Processes

45 Sustainable Management

47 Human Capital̶Empowering Individuals

  1. Task Force on Climate-related Financial Disclosures (TCFD)
  1. Business Strategy
    56 Urban Transportation
    59 Real Estate
    64 Entertainment
    67 Information and Communication Technology
    69 Travel
    71 International Transportation

03

Creating Real Value: The Foundations

75

Priority Issue 6 Robust governance

  1. Directors and Audit & Supervisory Committee Members
  1. Outside Directors and Chairman Roundtable Discussion

89

Priority Issue 4 Empowering individuals

  1. Priority Issue 5 Environmental protection
  1. Participation in Initiatives and External Evaluation

04 Financial Section and Corporate Data

  1. Consolidated Eleven-Year Summary
  1. Business Risks

101 Consolidated Balance Sheets

  1. Consolidated Statements of Income/
    Consolidated Statements of Comprehensive Income
  2. Consolidated Statements of Changes in Net Assets
  1. Consolidated Statements of Cash Flows
  2. Notes to the Consolidated Financial Statements
  1. Others
  2. Major Group Companies
  3. Company Overview and Investor Information

This integrated report, in addition to a review of fiscal 2023, also describes the management policies and ESG-related initiatives of Hankyu Hanshin Holdings, Inc. It is intended to aid all those who read it, beginning with our shareholders and investors, in gaining a deep understanding of our Company.

Definition of the areas served by the Hankyu and Hanshin lines:

Below are lists of areas with Hankyu Corporation and Hanshin Electric Railway stations (including tier 2 railway operators).

Osaka Prefecture: Osaka City (Fukushima, Konohana, Nishi, Naniwa, Nishi- Yodogawa, Higashi-Yodogawa, Yodogawa, Kita, and Chuo, out of a total of 24 wards); and Toyonaka, Ikeda, Suita, Takatsuki, Ibaraki, Minoh, and Settsu cities and Shimamoto town

Hyogo Prefecture: Kobe City (Higashi-Nada, Nada, Hyogo, Nagata, and Chuo, out of a total of 9 wards); and Amagasaki, Nishinomiya, Ashiya, Itami, Takarazuka and Kawanishi cities

Kyoto Prefecture: Kyoto City (Nakagyo, Shimogyo, Ukyo, and Nishikyo, out of a total of 11 wards); and Muko and Nagaokakyo cities and Oyamazaki town

Period under Review

This integrated report is based on the fiscal year 2023 (April 2022‒March 2023), however it also includes information pertaining to activities before and after this period.

Forward-Looking Statements

The reader is advised that this integrated report contains forward-looking statements regarding the future plans, strategies, and earnings performance of Hankyu Hanshin Holdings, Inc., which are not statements of historical fact but constitute estimates or projections based on facts known to the Company's management as of August 2023. Actual results may be influenced by various business risks and uncertainties, and differ substantially from such statements.

About the Compilation of this Integrated Report and the Auditing Company Used The financial section of this integrated report includes a digest of information including consolidated financial statements in the Company's Securities Report for the 185th period, audited by KPMG AZSA LLC and presented in a somewhat modified format. We have presented this information in such a way as to ensure that there is no discrepancy with the data presented in the annual securities report. However, the integrated report itself has not been audited by KPMG AZSA LLC.

Reference Guidelines This report references the International Integrated Reporting Framework set by the International Integrated Reporting Council̶now part of the IFRS Foundation̶and the Ministry of Economy, Trade and Industry' Guidance for Collaborative Value Creation. It also references the Global Reporting Initiative's GRI Standards for its ESG information.

Role of Each of Our Publications

Publication

Contents

Integrated Report

Particulars as per the Contents page.

(this report)

Group Guide

We compile an annual Group Guide to aid in understanding of the Group

outline. This Group Guide includes an outline of the scope of Group

businesses, and a list of Group companies.

Securities Report

Based upon Article 24, Paragraph 1 stipulated in the Financial Instruments

and Exchange Act, this report is required to be submitted to the Kanto Local

(Japanese only)

Finance Bureau. Please consult this report for detailed financial information.

Corporate

This report is in accordance with Japan's Corporate Governance Code and is

Governance Report

required to be submitted to the Tokyo Stock Exchange. Please consult this

(Japanese only)

report for information on our Corporate Governance stance and systems.

Sustainability

This data book contains detailed information regarding our Group's ESG

Data Book

initiatives. Please consult this data book for particulars about our ESG strategy.

In observance of Article 19, Paragraph 4 of the Railway Business Act, this

Safety Report

report is aimed at promoting a broad understanding of our efforts toward

preserving transportation safety. It systematically presents information about

(Japanese only)

safety for each of our railway companies (Hankyu Corporation, Hanshin

Electric Railway, Kita-Osaka Kyuko Railway, and Nose Electric Railway).

Sustainability Data Book

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

Social:

Respect human rights, ensuring business safety and reliableness, contribute to local communities, improve employee satisfaction and create a more positive workplace, occupational safety & health and health management

Environment:

Environmental management, climate change, pollution and resources, biodiversity, and water resources

Governance:

Corporate governance, thorough compliance and corruption prevention, risk management, and taxation transparency

3

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

4

Profile

Profile

Creating Real Value:

Our Story

Creating Real Value:

The Processes

Creating Real Value:

The Foundations

Financial Section and

Corporate Data

Value Creation Trajectory

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

1907

Establishment of the Minoh‒Arima Electric Railway Company (the forerunner to Hankyu Corporation)

1910

Opening of railway lines

Takarazuka Line (Umeda‒Takarazuka) and Minoh Line (Ishibashi‒Minoh)

Launch of land subdivision business (Start of sales of Ikeda Muromachi Residential Land Plots)

1913

Formation of Takarazuka Girls'Revue (currently Takarazuka Revue Company)

1899

Establishment of Settsu Electric Railway (currently Hanshin Electric Railway)

1905

Opening of railway line

Kobe (Sannomiya)‒outer Osaka (Deiribashi)

1909

Launch of land and buildings leasing business

(completion of 30 rental houses in front of Nishinomiya Station)

1924

A Robust Transportation Network

Hankyu Corporation and Hanshin Electric Railway began operations in the early

Total length of railway lines

1900s. Over a full century, we expanded our railway network on the business

Attractive line-side areas

143.6 km

model of attracting people to the areas along the lines by developing residential

Hankyu Corporation

areas and through other means to increase the number of railway passengers.

formed over a century

48.9 km

Today, we have built an extensive transportation network in the Kansai region that

Hanshin Electric Railway

includes bus and taxi services, primarily in the Keihanshin area that includes Kyoto,

Osaka, and Kobe. This network serves as important social infrastructure, providing

people with safe, secure, and comfortable transportation services.

Number of railway passengers carried

The Group has built on this railway operation business, expanding into real

(actual FY2023 figures)

estate development, entertainment, and a number of other fields over the course

Hankyu

Approx. 571,600,000

of more than a century, working to develop services that provide high customer

Corporation

satisfaction and offer new value to people along those rail lines. In these ways we

Hanshin

Approx. 218,700,000

have built a reliable reputation, growing the line-side areas around transportation

Electric Railway

lines that form the core of the Group's business.

See pages 9 and 10

1926

Opening of Takarazuka Hotel

1948

Launch of Hankyu Corporation's airline agency

(first Pan American Airways agency agreement in Japan)

Acquisition of Japan's first IATA air cargo agency license

1952

Establishment of Hankyu Real Estate (currently Hankyu Hanshin Properties)

1960

Opening of Koshien Stadium (later renamed Hanshin Koshien Stadium)

1935

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

1948

Launch of Hanshin Electric Railway's airline agency business

1950

Acquisition of IATA air cargo agency license

1967

Positive Urban Development

Competitive advantage cannot be developed in a day

To increase the number of passengers along the railway lines, Hankyu Corporation's founder, Ichizo Kobayashi, actively pursued other forms of development in addition to building residential areas. Those endeavors include the still-popular Takarazuka Grand Theater and the world's first department store at a train terminal, the Hankyu Department Store. In the Osaka-Umeda area, the Group's largest business base, we have continued to develop office buildings and commercial facilities connected directly to the train station, establishing the area as the Kansai region's largest terminal. After the establishment of Hankyu Hanshin Holdings, development has accelerated even further to make the area even more attractive, taking advantage of the Group's greater total strength.

With a long history of business wedded to this region, our competitiveness is rooted in this drive to offer new enrichment and lifestyle options to people through urban development that attracts people to line-side areas to visit or live.

Leasable area (at the end of FY2023)

Approx. 2.23 million m²

Most Desirable Towns to Live In ( ansai region)

* An investigation conducted by MAJOR 7 (Sumitomo Realty & Development and six other companies) on October 6, 2022

1st: Osaka-Umeda Station Osaka Station

2nd: Nishinomiya-kitaguchi Station

3rd: Shukugawa Station

Top three are all on Group railway lines

See pages 10 and 59

Establishment of Hankyu Kokusai Kotsu-sha (currently Hankyu Travel International)

Opening of Hotel Hanshin (currently Hotel Hanshin Osaka)

Exciting Content

Entertainment is one of the unique strengths of the Group, and two of our most

Providing real-world value,

important assets are the Takarazuka Revue and Hanshin Tigers.

Total attendance at Hanshin Tigers

The Takarazuka Revue began with a singing troupe performing operas in a

2006

Establishment of Hankyu Hanshin Holdings, Inc.

2008

Opening of the Hankyu Nishinomiya Gardens Main Building

2009

Opening of operations of Hanshin Namba Line

(Nishikujo‒Osaka-Namba)

2012

Completion of Umeda Hankyu Building project (currently Osaka

Umeda Twin Towers North)

2022

Completion of Osaka Umeda Twin Towers South project

o ering dreams and excitement

theater converted from an indoor swimming pool facility. The Takarazuka Revue,

home games (2022 season)

Approx. 2,620,000

with its motto,"Modesty, Fairness, Grace,"is loved by people across Japan and

abroad, and will celebrate its 110th anniversary in 2024. The Hanshin Tigers

started out as the Osaka Baseball Club, established in 1935, so it has a nearly

90-year history and the strong support of local fans and people who love its home,

the Hanshin Koshien Stadium.

Takarazuka Revue total attendance of

Besides entertainment, the Group runs a travel business, centering on the

performances (actual FY2023 figures)

Trapics brand, focusing on fulfilling a diverse and growing range of travel needs.

Approx. 2,780,000

In the aftermath of the COVID-19 pandemic, the value of real-world experiences

is again being recognized. We will continue to develop and refine all of this unique

"content"to offer excitement and encourage people to dream.

See page 10

5

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

6

See page 56

Profile

Business Overview

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

Core Businesses

Core Companies

Nature of Business

Creating Real Value:

Creating Real Value:

Creating Real Value:

Financial Section and

Profile

Our Story

The Processes

The Foundations

Corporate Data

Fiscal 2023 Results Summary Note: Calculated based on the simple aggregate amount (including intersegment transactions) of each segment.

Railway operation business

The railway network in the Kansai region is centered on Hankyu Corporation and Hanshin Electric Railway, which operate 143.6 km* and 48.9 km* of track

■ Urban transportation ■ Real estate ■ Entertainment ■ Information and communication technology ■ Travel ■ International transportation ■ Other

Hankyu Corporation

Urban

Transportation

Hankyu Hanshin Properties

Real Estate

respectively.

*Including tier 2 railway operators

Automobile business (bus, taxi)

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

Retailing business

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

Leasing business

This business owns commercial facilities, office buildings, and other facilities, mainly in the Osaka-Umeda area and the line-side areas of the Hankyu and Hanshin lines. The business has been actively pursuing development of real estate, including in the short-term-return(fix-and-flip) business.

Real estate sales and other business

This business markets condominiums, residential land lots, and detached houses, mainly in the line-side areas of the Hankyu and Hanshin lines, and the Tokyo metropolitan area. The business is engaged in property management, building maintenance, and real estate fund/REIT management, including private placement funds and J-REIT operations.

Overseas real estate business

Building on results in Japan, the business is developing residential sales and leasing businesses elsewhere, particularly in the ASEAN region.

Hotel business

This business operates a wide range of hotel formats in many regions but

See page 59

particularly Tokyo and Osaka.

Sports business

Operating revenue

55,649 million

6

18

185,581 million

163,269 million

16

Consolidated

total:

191,400 million

968,300

28

19

million

282,049 million

6

7

60,355 million

72,289 million

Operating pro t

2,752 million

8,381 million

3

9

15,257 million

24

22,435 million

16

Consolidated

total:

5,917 million

89,350

6

million

13

29

27,851 million

12,622 million

Entertainment

Hanshin Electric Railway

Information and

Communication

Technology

This business manages the Hanshin Tigers professional baseball team as well as the team's home ground and high-school baseball mecca Hanshin Koshien Stadium and related businesses. The business also operates a music business (Billboard Live).

Stage business

This business manages the performances of the Takarazuka Revue, and manages and operates related businesses engaged in original merchandise sales and video and music streaming. Further, the business operates Umeda Arts Theater and creates and promotes theatrical productions.

See page 64

Information and communication technology business

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

See page 67

  • Changes in operating profit

(Increased pro t (about 20.0 billion) from response to

temporary demand spike)

In travel, pandemic-related operations for local authorities

Increase of 50.1 billion

Pressing demand for international transportation

(¥ billion)

(¥ billion)

100

Increase of 50.1 billion

89.4

100

＋21.0

＋0.4

＋0.1

89.4

About

80

80

International transportation

Other/adjustments

Urban transportation

estateReal

Entertainment

andInformation communication technology

Travel

20.0 billion

＋8.4

＋3.4

＋0.1

60

60

＋16.8

FY2023

39.2

39.2

40

FY2023

40

results

20

FY2022

results

20

FY2022

results

results

0

0

In fiscal 2023, the effects of the pandemic continued to be felt, but many business segments saw at least some recovery. Added to this, in our travel business, we received a much larger number of orders from local governments to support those recovering at home. As a result, revenues and profit increased compared to fiscal 2022.

Travel business

This business plans, markets, arranges, and supports travel for Japanese people in

Segment assets

overseas and Japan and for inbound tourists. The business provides various travel

services which include: media sales to sell packaged tours, group tours that we

propose for study or as educational tours, counter sales at shops, tours for inbound

Hankyu Travel International

international visitors and arrangements for overseas business trips. As well as

providing contracted call center services, the business provides solutions for a

Travel

variety of contracted tasks for national and local authorities.

See page 69

International transportation business

As a global forwarder, we have established bases in regions all over the world and

developed a comprehensive international logistics business. As the global business

diversifies, we provide a one-stop logistics solution that is optimized to our

customers'diverse needs by bringing together air freight, sea freight, and logistics

services as a logistics consultant.

Hankyu Hanshin Express

Domestic bases: 47 / Overseas bases: 148 (As of September 1, 2023)

International

Transportation

See page 71

  • 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 Osaka-Umeda and their line-side areas.

42,742 million

(As of the end of FY2023)

72,019 million

88,245 million

72,196 million

3

32

113,110 million

4

3

31

Consolidated

total:

2,865,410

million

55

861,185 million

1,537,946 million

  • Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

8

Profile

Creating Real Value:

Creating Real Value:

Creating Real Value:

Financial Section and

Profile

Our Story

The Processes

The Foundations

Corporate Data

Service Area

Making our line-side communities the absolute best among

the ansai networks

P31

34

Centered around our efforts in Osaka-Umeda, we are going further with our development of communities, providing myriad value in the form of safe, comfortable urban lifestyles and experiences that stimulate dreams and excitement.

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

Arashiyama

Katsura

Hankyu

Arashiyama Line

Kyoto

Prefecture

Hankyu

N

Kyoto-kawaramachi

Kyoto

A strong transportation network

Hankyu Corporation's railway lines link Osaka-Umeda with Kobe, Takarazuka, and Kyoto. Hanshin Electric Railway is an operator with railway lines that directly link Kobe with Osaka' major northern and southern terminals, which are Osaka-Umeda and Osaka-Namba, respectively. These

Hankyu

Kobe Line 46.9 km

Takarazuka Line 28.5 km Nissei-chuo

Corporation

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

(Takarazuka Line, Minoh Line)

65.4

2.8

Myokenguchi

Kyoto Line

operations form a network that acts as a type of major society-supporting infrastructure in the Kansai area. While the number of passengers was particularly hard-hit by the pandemic, there are signs of recovery.

143.6 km

Kyoto Line

km

Kobe Rapid

km

(Kyoto Line, Senri Line, Arashiyama Line)

Transit Railway Line

Nose

Hanshin

Hanshin Line

43.9 km

Railway

Electric

Electric Railway

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

48.9 km

5.0 km

Kobe Rapid Transit Railway Line

Kawanishi-noseguchi

Osaka

Prefecture

Hankyu

Takatsuki-shi

Minoh Line

Minoh

Kita-senri

Changes in number of passengers

Number of passengers in FY2013 = 100%

Hankyu Corporation

Hanshin Electric Railway

120%

110%

106%

107%

109%

111%

111%

106%

103%

100%

102%

100%

106%

107%

106%

99%

105%

105%

102%

102%

100%

99%

90%

88%

93%

80%

83%

83%

70%

79%

Osaka

Ishibashi Senri-Chuo

Hankyu

Takarazuka

International

Senri

Hyogo

Airport

handai-mae

Kita-

Line

Hankyu

Itami Airport

Toyonaka

Prefecture

Takarazuka Grand Theater

Hankyu

Itami

Osaka

Imazu

Itami Line

Hankyu

Kyuko

Line

Line

Takarazuka

Hankyu Koyo Line

Koyoen

Esaka

Kobe

Electric

Hankyu Kobe Line

Ashiyagawa

Shukugawa

Tsukaguchi

MetroOsaka

Railway

Nishinomiya-kitaguchi

Mikage

Shin-Osaka

Awaji

Imazu

Okamoto

Imazu

Koshien

Ashiya

Mukogawa Daimotsu

Juso

Kobe Rapid Transit

Tenjimbashisuji

Amagasaki

Railway

Shin-Kobe

Hanshin Koshien

6-chome

Kobe-

Stadium

Hanshin

Osaka-Umeda

sannomiya

Shinkansen

Mukogawadanchi-MaeMukogawa

Sanyo

Line

Fukushima

Kobe-Sannomiya

Hanshin Namba Line

Shinkaichi

Motomachi

Osaka-Namba

Nishidai

Hanshin

Main Line

Metro

Osaka

t

ic

r

c

le

E

e

o

in

y

ai

L

o e Airport

an

n

S

M

Osaka Bay

s

O

a

k

a

Osaka-Umeda

M

e

t

r

o

n

o e

id s

a

n

a

k

o

k

in

T

h

S

Kintetsu

Nara Line

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

(FY)

(Estimate)

Our community building has powered our line-side areas appeal

The populations in the line-side areas where we have been committed to community building since our founding have steadily grown despite the low birthrates and aging society in Japan as a whole. Furthermore, of the top twenty Most Desirable Towns to Live In (Kansai region), thirteen of our line-side towns were selected, and have been highly praised.

Population

Survey of Most Desirable Towns to Live In (

ansai region)

108%

Population trends (1991 = 100)

Ranking

Station

(Location)

Ranking

Station

(Location)

1

Osaka-Umeda/Osaka

(Kita-ku, Osaka)

11

Hommachi

(Chuo-ku, Osaka)

106%

Hankyu and Hanshin

Osaka Pref.

Kyoto Pref.

2

Nishinomiya-kitaguchi

(Nishinomiya, Hyogo Pref.)

12

Kobe-Sannomiya/

(Chuo-ku, Kobe)

Sannomiya

line-side area

Hyogo Pref.

3

Shukugawa

(Nishinomiya, Hyogo Pref.)

13

Tennoji

(Tennoji-ku, Osaka)

Kansai

104%

4

Okamoto

(Higashinada-ku, Kobe)

14

Ashiyagawa

(Ashiya, Hyogo Pref.)

102%

5

Takarazuka

(Takarazuka, Hyogo Pref.)

15

Yodoyabashi

(Chuo-ku, Osaka)

6

Senri-Chuo

(Toyonaka, Osaka Pref.)

16

Kitahama

(Chuo-ku, Osaka)

100%

7

Mikage (Hankyu)

(Higashinada-ku, Kobe)

17

Toyonaka

(Toyonaka, Osaka Pref.)

8

Takatsuki/

(Takatsuki, Osaka Pref.)

18

Kyoto

(Shimogyo-ku, Kyoto)

98%

Takatsuki-shi

9

Ashiya

(Ashiya, Hyogo Pref.)

19

Tanimachi 6-chome

(Chuo-ku, Osaka)

96%

10

Karasuma Oike

(Nakagyo-ku, Kyoto)

20

Fukushima

(Fukushima-ku, Osaka)

1991

1995

2000

2005

2010

2015

2020

*Of the top twenty, thirteen are our line-side areas.

Source: Basic Resident Registration population figures taken from Chiiki Keizai Soran (Local

Source: Investigation conducted by MAJOR 7 (Sumitomo Realty & Development and six

Economy Directory), published by Toyo Keizai (as of January 1, 2023)

other companies) (October 6, 2022)

Two big draws supported by a wide array of fans

In our entertainment business, the Hanshin Tigers and Takarazuka Revue have gained a following among a diverse range of fans, carrying the dreams and excitement of many people over a number of years.

Total attendance at Hanshin Tigers home games (by season)

(Thousands of people) 3,500

Takarazuka Revue total attendance of performances

(Thousands of people)

Live viewing*¹/Live streaming*²

3,500

Other theaters

Kansai International Airport

The largest airport in western Japan, and the Kansai area's gateway to the world

3,000

2,899

3,091

2,619

2,500

2,000

1,500

1,000

749

500

518

0

2018

2019

2020

2021

2022

(CY)

3,000

3,128

2,991

Takarazuka Grand Theater/Tokyo Takarazuka Theater

2,716

2,781

2,500

2,000

1,500

1,565

1,000

500

0

2019

2020

2021

2022

2023

(FY)

ansai International Airport

  • Hankyu Hanshin Holdings Integrated Report 2023

*1

Live viewing of shows at movie theaters nationwide for paying audiences

Number of shows:

*2

Live streaming of shows via the internet for viewing at home on a TV, smartphone,

(-22 from previous year, 78 cancellations)

Takarazuka Grand Theater: 368

or other device for paying viewers (started in fiscal 2021)

Tokyo Takarazuka Theater: 390

(+3 from previous year, 64 cancellations)

Hankyu Hanshin Holdings Integrated Report 2023

10

Profile

Service Area

Creating richer lifestyles beyond our railway lines

We are expanding the type of thriving community development and business models that we have created along our lines overseas̶particularly in the ASEAN region̶and to the Tokyo metropolitan area.

Real estate business development overseas Special Feature 2 (see pages 35 36)

Overseas, with a particular focus on the ASEAN region because of the sustainable growth forecast there, we are utilizing the expertise we have gained at our line-side areas, to expand the scale of our residential sales, long-term leasing, and fix-and-flip businesses.

Residential sales

Logistics facilities

Vietnam

Residential sales

U.S.A.

Thailand

Rental residences

The Philippines

Residential sales

Logistics facilities

Singapore

Creating Real Value:

Creating Real Value:

Creating Real Value:

Financial Section and

Profile

Our Story

The Processes

The Foundations

Corporate Data

Development leasing

In addition to the residential sales business we have focused on in the ASEAN region so far, we are working on our long-term holding business (real estate leasing business) and fix-and-flip business (short-term-return business) to quickly expand and grow the scale of our earnings and profits in our

overseas real estate business.

Plaza Indonesia Complex

Park at 33rd in Arizona, U.S.A.

Central Park Mall in Indonesia (acquired FY2023)

We acquired Central Park Mall, a landmark large-scale commercial facility in the western Jakarta area. The mall is aimed at middle and higher brackets of society, a demographic that is predicted to grow significantly in the medium and long term alongside Indonesia' economic growth. This means we can expect the number of user to continue rising.

Total floor space

Approx. 188,000 m² (including equity belonging to business partners)

Size

10 floors above ground, 2 below ground, and other areas

Purpose

Commercial facility (approx. 300 tenants)

Developing the real estate business in the Tokyo metropolitan area

In addition to the steady promotion of developments currently underway in the Tokyo metropolitan area, we will look at how to incorporate hotel and entertainment functions in community building. We will accelerate efforts in the short-term-return business, while also expanding redevelopment and replacement projects.

Malaysia

Residential sales

Indonesia

Residential sales

Hotels

Commercial facilities

Logistics facilities

Offices

As part of the H-CUBE low- rise commercial facility on a busy road in the Omotesando/Jingumae area, we developed or acquired four buildings, three of which have been sold off to Hankyu Hanshin REIT Asset Management,

We promote the development of rental condominiums for investors to gain revenue, and of student dormitories, and other buildings̶particularly in the Tokyo metropolitan area̶through our short- term-return business.

National GDP forecasts (where 2017 = 100)

Residential sales

H-CUBE Minamiaoyama (Minato-ku, Tokyo)

Inc.

Leasing condominium brand Geo ent

200

190

Thailand

Vietnam

The Philippines

Indonesia

Malaysia

Singapore

U.S.A.

Japan

180

170

160

150

140

130

120

110

100

90

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

Source: IMF World Economic Outlook, April 2023

In 2015, we began selling condominiums in Vietnam's Ho Chi Minh City, and now we have 52 projects (covering more than 50,000 units) in five countries: Thailand, Vietnam, the Philippines, Indonesia, and Malaysia.

(As of September 1, 2023)

Overseas markets

Projects

Total units

Thailand

36

Approx. 29,870

Vietnam

6

Approx. 13,990

The Philippines

5

Approx. 4,220

Indonesia

4

Approx. 3,980

Malaysia

1

Approx. 850

Total

52

Approx. 52,910

Yaesu 2 Naka Redevelopment (scheduled to be completed in FY2029)

As a participant in this project, at the end of March 2023 we received approval for a change to the legal designation, and we began demolition work.

Total site area

Approx. 19,600 m² (including parts belonging to business partners)

Total floor space

Approx. 388,700 m² (including parts belonging to business partners)

Size

43 floors above ground and 3 below ground

Purpose

Offices, stores, theater, serviced apartments, international school,

bus terminal, parking, etc.

Artist' impression of the exterior

11

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

12

Profile

Creating Real Value:

Creating Real Value:

Creating Real Value:

Financial Section and

Profile

Our Story

The Processes

The Foundations

Corporate Data

Financial Highlights

ey Financial Indicators (Graphs)

Operating revenue

(¥ billion)

1,000

968.3

800

791.4

762.7

746.2

600

568.9

400

200

0

2019

2020

2021

2022

2023

（FY）

EBITDA

(¥ billion)

200

171.4

153.7

150

154.1

100

100.7

Operating profit and operating profit margin

(¥ billion)

（%）

120

114.9

21

14.5

95.2

89.4

80

14

12.5

40

39.2

9.2

7

5.3

0

2.10.4

0

2019

2020

2021

2022

2023

（FY）

Operating profit Operating profit margin (right axis)

Profit attributable to owners of parent and ROE

(¥ billion)

（%）

80

65.5

12

60

54.9

9

47.0

40

6.1

6

7.6

21.4

5.3

20

3

Non-Financial Highlights

Environmental Factors

CO₂ emissions volumes (Scope 1 and 2 equivalent)

（t-CO2） 800,000

600,000

616,365

400,000

434,932

370,131

393,821

361,832

200,000

0

2014

2020

2021

2022

2023

(FY)

Urban transportation

Real estate

Entertainment

Information and communication technology

Travel

International transportation

Other

Note: Due to the merger in fiscal 2023 of the real estate business and the hotel business, for this data the hotel business is recorded under the real estate business, and this has also been applied to past years'figures.

CO₂ emissions for fiscal 2023 totaled 361,832 t-CO₂, 8.1% reduction year on year and 41.3% reduction from fiscal 2014 levels.

Energy consumption (crude oil conversion basis)

（kl）

400,000

300,000

316,491

283,045

253,116

252,495

257,257

200,000

100,000

0

2014

2020

2021

2022

2023

(FY)

In fiscal 2023, energy consumption on a crude oil conversion basis totaled 257,257 kl (18.7% reduction from fiscal 2014 levels). The increase in energy consumption from the previous year was due to the recovery from the pandemic.

50

60.3

0

2019

2020

2021

2022

2023

（FY）

0

2.5

0

-20

-4.1

-3

-40

-6

-36.7

2019

2020

2021

2022

2023

（FY）

Profit attributable to owners of parent ROE (right axis)

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

Social Factors

Capital investment in railway operation business

(¥ billion)

20

15

4.3

4.7

6.4

6.9

4.1

10

14.1

2.3

14.4 0.7

1.7

1.6

Percentage of women in management positions and women among new hires

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

（%）

（%）

10

45.3

47.8

50

44.5

8

36.8

40

34.6

6

5.1

30

4.5

4.5

4.7

5.6

4

20

Total assets and ROA

(¥ trillion)

（%）

3

2.62

2.72

2.87

6

2.47

2.49

2

3.6

4

4.5

3.2

1

2

0

1.4

0

-0.3

-2

2019

2020

2021

2022

2023

（FY）

Total assets ROA (right axis)

Note: ROA = ordinary profit/total assets (average of period-start and period-end totals)

Interest-bearing debt, D/E ratio, and interest-bearing debt/EBITDA ratio

(¥ billion)

(Times)

1,200

1,063.0

1,096.0

1,106.4

20

900

877.1

903.5

17.6

15

600

10.9

10

300

5.1

5.9

7.2

5

0

1.0

1.0

1.2

1.3

1.2

0

2019

2020

2021

2022

2023

（FY）

Interest-bearing debt

D/E ratio (right axis) Interest-bearing debt/EBITDA ratio (right axis)

5

12.6 0.6

12.2

11.5

4.5

4.8

4.8

0

3.5

3.1

Hankyu Hanshin

Hankyu Hanshin

Hankyu Hanshin

Hankyu Hanshin

Hankyu Hanshin

(FY)

2019

2020

2021

2022

2023

Safety-related capital investment Other capital investment

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

As a railway operator, the Group provides a form of public infrastructure. We therefore make giving priority to the safety of our customers a fundamental policy of management, and conduct ongoing safety-related capital investments in our railway operation business accordingly. Safety-related capital investments in fiscal 2023 totaled ¥11.5 billion at Hankyu Corporation and ¥3.1 billion at Hanshin Electric Railway. These investments were primarily used for the construction of new trains and renovation of existing ones, as well as for installing platform screen doors, further improving stations, and seismically reinforcing elevated tracks.

2

10

0

0

2019

2020

2021

2022

2023

(FY)

Percentage of women in management positions

Percentage of women among new hires (right axis)

*Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin Express, and Hankyu Hanshin Hotels

Hankyu Hanshin Holdings and its six major companies are actively continuing to hire female employees and also pursuing fair working environments where employees are able to fulfill their roles to the best of their abilities, regardless of gender, by supporting them by encouraging diverse paths and helping them to balance their work and private lives. In fiscal 2023, the percentage of women in management positions was 5.6% and females made up 34.6% of new hires.

Cash flows

(¥ billion)

150

126.0

123.1

132.1

100

50

81.8

18.9

0

9.9

-50

-5.4

-32.5

-14.6

-100

-116.2

-128.5

-102.2

-96.4

-113.2

-150

2019

2020

-134.7

2022

2023

（FY）

2021

Net cash provided by operating activities Net cash used in investing activities Free cash flow

Returns to shareholders

(¥ billion)

(¥)

25

100

20

80

15

9.8

4,3

2.050

60

10

50

50

50

40

40

5

12.2

12.2

12.1

12.1

20

9.9

0

0

2019

2020

2021

2022

2023

（FY）

Acquired treasury stock Total annual dividend

Annual dividend per share (right axis)

Governance Factors

Rate of attendance of outside directors at meetings of the Board

Percentage of outside directors

of Directors and Audit & Supervisory Committee

（%）

（%）

100.0

100.0

100.0

60

100

45.5

45.5

41.7

45.5

80

92.9

98.0

97.8

100.0

40

33.3

80.0

20

60

Outside directors, the Board of Directors

0

0

Outside directors, the Audit & Supervisory Committee

2019

2020

2021

2022

2023 (As of the

2019

2020

2021

2022

2023

(FY)

conclusion of

Note: With the approval obtained at the Ordinary General Meeting of Shareholders held

the General

Meeting of

in June 2020, Hankyu Hanshin Holdings became a company with an audit and

Shareholders

supervisory committee.

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

for each year)

13

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

14

Creating Real Value: Our Story

Profile

Creating Real Value:

Our Story

Creating Real Value:

The Processes

Creating Real Value:

The Foundations

Financial Section and

Corporate Data

Osaka-Umeda area

Creating Real Value:

CONTENTS

17

Value Creation Process

01 Our Story

19

Message from the President

25

Long-Term Vision: Toward 2040

27

Outline of Our Medium-Term Management Plan (Fiscal 2023-2026)

31

Special Feature 1 Umeda and Line-Side Communities Are Driving Growth in Accordance with the Long-Term Vision

35

Special Feature 2 Another Driver of Growth in Line with the Long-Term Vision (Overseas Real Estate)

37

Special Feature 3 The Pursuit of Safety and Peace of Mind in the Railway Business

40

Special Feature 4 Working toward Carbon Neutrality

15 Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023 16

Creating Real Value: Our Story

Value Creation Process (Overall Long-Term Vision)

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

Profile

Creating Real Value:

Our Story

Creating Real Value:

The Processes

Creating Real Value:

The Foundations

Financial Section and

Corporate Data

Accumulated

Dynamism of external partners

Tangible and

intangible

management

resources

Manufactured

capital

Extensive assets that

can create stable

revenue

Social and

relationship capital

Services based on

trust and brand

strength

Intellectual capital

Expertise and brand power accumulated over more than 100 years of history

Human capital

Diverse workforce with the courage to try new things

See page 47

Financial capital

Stable financial

Application

(incl. digital

technologies)

Long-Term Vision: Toward 2040 p25

Strategies for achieving the future vision

Strategy

Make our line-side communities the

absolute best among the ansai

(core strategy)

networks

Strategy

Expand the coverage of our

line-side business model

Strategy

Make our content as compelling as possible

Strategy

Increase market share by providing high

value-added services

Promotion of the Hankyu Hanshin D Project

Contribute to SDGs and 2050 carbon neutrality goal

Strengthening cooperation with external partners

Financial policy

Pursuit of nancial stability

Bringing the Group together to promote reforms

Slogan

Enhancing line-side areas and expanding

elds

value

Services we provide (value)

corporatetoimprovementsSustainable

PlanManagementTerm-Medium 2026)(FY2023

Safe,

satisfactioncustomerImproved

comfortable

urban lifestyles

p27

Experiences that

stimulate dreams

and excitement

Advanced

business support

Establishing a capital-cost-aware management style

Stable returns

(via the Long-Term Vision)

Contributing to

a sustainable

society

Contributing to and giving back

to stakeholders

Customers

Through safe, comfortable urban lifestyles and compelling content, we will provide experiences that stimulate dreams and excitement for improved customer satisfaction.

Communities

Working with the region, we will make our line-side communities the absolute best among the Kansai networks.

Employees

We will remain aware of diversity and inclusion, and raise employee satisfaction.

Business external partners

By continuously providing high-value-added services, we will construct relationships of trust and grow together.

Creditors

We will maintain our financial soundness (to maintain our financial ratings).

Shareholders

We will aim to maintain and improve ROE, to continue to provide a stable, appropriate level of shareholder return.

Next generation

We will create a vigorous Kansai where people want to live, visit, and work, and pass the baton on to the next generation.

foundation

Natural capital

Advantageous

operational area

environment

Sustainability Declaration p45

General Principles

For over a hundred years, we have sought to

cultivate communities and enrich lives. Leveraging

Create a future grounded in"Safety

this experience, we commit ourselves to

addressing social and environmental challenges

and Comfort,"and a future colored

and working toward a sustainable future, one that

offers a fulfilling, joyful life to all and inspires the

by"Dreams and Excitement."

next generation to dream with hope.

Group Management Philosophy p2

Six priority issues (materiality matrix)

Safe, reliable

Thriving

Life designs

Empowering

Environmental

Robust

infrastructure

communities

for tomorrow

individuals

protection

governance

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.

Contributing to the

SDGs carbon

neutrality by 2050

17

Hankyu Hanshin Holdings Integrated Report 2023

Hankyu Hanshin Holdings Integrated Report 2023

18

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Hankyu Hanshin Holdings Inc. published this content on 20 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 December 2023 04:54:34 UTC.