Hankyu Hanshin : Integrated Report 2023（Single page , preferable for printing）

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

Profile

Message from the Chairman

Kazuo Sumi

Chairman and

Representative Director,

Group Chief Executive

Officer

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

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.

Profile

Creating Real Value:

Our Story

Creating Real Value:

The Processes

Creating Real Value:

The Foundations

Financial Section and

Corporate Data

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 G Priority Issue 6 Robust governance

1. Directors and Audit & Supervisory Committee Members

1. Outside Directors and Chairman Roundtable Discussion

1. S Priority Issue 4 Empowering individuals

1. E 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

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

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

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)

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

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

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

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

Opening of Hotel Hanshin (currently Hotel Hanshin Osaka)

A Robust Transportation Network

Attractive line-side areas formed over a century

Positive Urban Development

Competitive advantage cannot be developed in a day

Exciting Content

Providing real-world value,

o ering dreams and excitement

Profile

Creating Real Value:

Our Story

Creating Real Value:

The Processes

Creating Real Value:

The Foundations

Financial Section and

Corporate Data

Hankyu Corporation and Hanshin Electric Railway began operations in the early 1900s. Over a full century, we expanded our railway network on the business model of attracting people to the areas along the lines by developing residential areas and through other means to increase the number of railway passengers. Today, we have built an extensive transportation network in the Kansai region that 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.

The Group has built on this railway operation business, expanding into real estate development, entertainment, and a number of other fields over the course of more than a century, working to develop services that provide high customer satisfaction and offer new value to people along those rail lines. In these ways we have built a reliable reputation, growing the line-side areas around transportation lines that form the core of the Group's business.

Total length of railway lines

Number of railway passengers carried

(actual FY2023 figures)

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

Entertainment is one of the unique strengths of the Group, and two of our most important assets are the Takarazuka Revue and Hanshin Tigers.

The Takarazuka Revue began with a singing troupe performing operas in a theater converted from an indoor swimming pool facility. The Takarazuka Revue, 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.

Besides entertainment, the Group runs a travel business, centering on the Trapics brand, focusing on fulfilling a diverse and growing range of travel needs.

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.

Total attendance at Hanshin Tigers

home games (2022 season)

Approx. 2,620,000

Takarazuka Revue total attendance of

performances (actual FY2023 figures)

Approx. 2,780,000

See page 10

Hankyu Corporation

Urban

Transportation

Hankyu Hanshin Properties

Real Estate

Entertainment

Hanshin Electric Railway

Information and

Communication

Technology

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 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.

Sports business

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

International

Transportation

Profile

Creating Real Value:

Our Story

Creating Real Value:

The Processes

Creating Real Value:

The Foundations

Financial Section and

Corporate Data

• 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 Pressing demand for international transportation

Increase of 50.1 billion

FY2023

results

Segment assets

861,185 million

1,537,946 million

Kawanishi-noseguchi

Myokenguchi

Osaka

Prefecture

Kintetsu

Nara Line