Corporate profile Transportation Company information by segment is current as of July 1, 2016. Business Corporate Philosophy With wisdom and dynamism, forging the way to the future 34 companies Railways, tramways, buses, ocean freight, cargo transportation, train maintenance Contributing to the Community Real Estate Construction Business Namba Business Justifying public trust as an all-round lifestyle provider, and building Shiomibashi Ebisucho a better society Tennoji Station District Putting the Customer First Hankai Providing excellent services for the customer, bringing living comfort Tramway Sakai and cultural enrichment Hamadera Ekimae Future Challenges Takashinohama Meeting the needs of coming generations with bold energy and Construction 5 companies Sembokukosoku 5 companies creativity Real estate leasing, real estate sales line Distribution A Dynamic Workplace Kansai Airport Izumi Chuo Business Creating a workplace brimming with vitality, harnessing the expertise Kishiwada and personal strengths of every employee Corporate Outline As of March 31, 2016 Composition ratio of operating revenue by segment Company Name: Nankai Electric Railway Co., Ltd. Tanagawa Misakikoen Hashimoto Construction Established: December 27, 1885 Business Other Kada 11 companies Head Ofce: 2-1-41 Shikitsu-higashi, Naniwa-ku, Shopping Center management, Business operations inside the Station Osaka, 556-8503, JAPAN 17.7％ 0.7％ Concourse Website: http://www.nankai.co.jp/ HOTEL Wakayamashi Gokurakubashi Paid-in Capital: ¥72,983,654,121 Transportation Koyasan Operating Revenue: ¥94.395 billion (head corporation) Leisure Services Business Wakayamako Business HOTEL ¥219.065 billion (consolidated) 39.0％ No. of Shareholders: 50,988 15.4％ Leisure Services No. of Employees: 2,567 (head corporation) Business 8,853 (all group companies) Managed track: 154.8 km Distribution Business Real Estate Business Rolling Stock: 688 13.9％ 13.3％ Note: The composition ratio is the ratio of operating revenues including transactions between segments. Editorial Policy 23 companies Osaka Since the 2014 edition, we have been including business overview and nancial information in addition to CSR information. Amusement Park management, travel agency, hotels and ryokan Japanese For CSR information, we refer to GRI guidelines and provide comprehensive reporting. inns, Leasing of facilities for motorboat racing, building management and maintenance businesses, printing, advertising agency Wakayama Applicable Term: Fiscal 2015 (April 1, 2015 to March 31, 2016). Some information, however, is from outside this period. Scope of Report: This report covers issues related to the Nankai Electric Railway Co., Ltd. However, some CSR activities of group companies are also covered in this report. Guidelines referenced: Environmental Reporting Guidelines, 2008 Edition by the Ministry of the Environment, Environmental Accounting Guidelines for Private Railway Businesses by the Association of Japanese Private Railways, and the G4 Sustainability Reporting Guidelines by GRI Contents Corporate prole ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・1 CSR overview Consolidated nancial statements・・・・・・・・・・・・41 Financial and nonnancial highlights・・・・・・・・・・・・3 ■ Safety・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・19 Third-party comments・・・・・・・・・・・・・・・・・・・・・・・・・45 Message from the president・・・・・・・・・・・・・・・・・・・・・5 ■ The Environment・・・・・・・・・・・・・・・・・・・・・・・・・・・26 Medium Term Business Plan・・・・・・・・・・・・・・・・・・・ 11 ■ Customers・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・31 Business overview by sector ・・・・・・・・・・・・・・・・・ 13 ■ Employees・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・33 ■ Governance・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・35 1 The Nankai Electric Railway CSR Report 2016 The Nankai Electric Railway CSR Report 2016 2 Financial and nonfinancial highlights Number of employees Number of passengers Number of female employees (Consolidated) (Fiscal Year) 2011 2012 2013 2014 2015 (Nankai Electric Railway only) Operating revenue (millions of yen) 181,869 184,412 197,495 210,995 219,065 8,853 (Consolidated) 233 mil. 105 Ordinary income (millions of yen) 11,067 15,474 16,899 22,001 27,110 (Individuals) (Thousands of people) (Individuals) (%) Profit attributable to owners of parent (millions of yen) 5,686 7,518 9,615 17,467 12,612 10,000 240,000 120 12 233,301 Comprehensive income (millions of yen) 9,776 10,207 10,644 25,190 7,394 8,808 8,853 101 104 105 highlights 8,288 8,209 8,319 228,862 227,031 97 95 7,500 223,484 225,129 Net assets (millions of yen) 135,602 143,176 152,039 199,991 203,939 220,000 80 8 Financial and nonfinancial nonfinancial and Financial Total assets (millions of yen) 789,591 781,589 781,671 909,547 894,621 5,000 4.04 4.09 Net assets per share (yen) 254.67 268.60 285.16 337.32 343.47 200,000 40 3.52 3.83 3.67 4 2,500 2,759 2,639 2,588 2,577 2,567 Net income per share (yen) 10.88 14.38 18.40 32.58 22.25 Capital to asset ratio (%) 16.9 18.0 19.1 21.0 21.8 0 0 0 0 1102 2102 2013 2014 2015 1102 2102 2013 2014 2015 1102 2102 2013 2014 2015 Return on equity (%) 4.4 5.5 6.6 10.3 6.5 (Fiscal Year) (Fiscal Year) (Fiscal Year) Consolidated Nankai Electric Railway only Number of female employees Ratio of female employees Total shareholders equity/total assets income (multiple) 32.4 27.3 21.7 15.2 27.5 Net cash provided by operating activities (millions of yen) 37,764 37,332 27,459 43,013 43,212 Message from the president Net cash provided by investing activities (millions of yen) 20,228 15,719 17,675 90,315 29,030 △ △ △ △ △ Net cash provided by financing activities (millions of yen) 16,162 13,592 19,779 51,503 17,047 △ △ △ △ Investments for safety CO2 emissions Rolling stock energy consumption The Ratio of Interest-Bearing Debt to EBITDA* (times) 11.9 11.1 10.4 9.6 8.4 rate EBITDA (earnings before interest, taxes, depreciation and amortization) = Operating Income + Depreciation and Amortization * 7.9 billion 177,806 t-CO2 6.12 kl/10,000 km (¥ millions） (t-CO2) (t-CO2 / ¥ millions) (kl/10,000 km) 8,000 7,942 1.94 1.91 1.88 300,000 1.75 1.80 7.00 Medium Business Term Plan 6,688 6,497 6,797 6,000 6,091 6.58 1.32 6.49 6.44 Operating revenue Ordinary income Profit attributable to owners of 200,000 1.20 6.33 176,142 175,756 177,806 6.12 parent 4,000 155,681 6.00 119,458 100,000 0.60 ¥219,065 mil. ¥27,110 mil. ¥12,612 mil. 2,000 (¥ millions） (¥ millions） (¥ millions） 17,467 210,995 219,065 0 0 0 0 200,000 197,495 30,000 15,000 181,869 184,412 27,110 1102 2102 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 12,612 (Fiscal Year) (Fiscal Year) (Fiscal Year) Business overview by sector 150,000 22,001 CO2 emissions CO2 emissions (Emission basic unit) 20,000 10,000 9,615 16,899 100,000 15,474 7,518 11,067 5,686 10,000 5,000 50,000 0 0 0 Green procurement ratio Monetary contributions to funds 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 to preserve biodiversity (Fiscal Year) (Fiscal Year) (Fiscal Year) 93.0% CSR overview (%) ¥6,000,000 (Y) 100 7,000,000 87.3 90.4 92.0 93.0 Net assets Total assets Return on equity 85.5 6,124,294 6,170,706 6,318,012 6,300,000 6,000,000 75 ¥203,939 mil. ¥894,621 mil. 6.5% 50 3,500,000 (¥ millions） (¥ millions） （％） 10.3 25 statements 200,000 199,991 203,939 1,000,000 10.0 909,547 894,621 financial Consolidated 152,039 789,591 781,589 781,671 0 0 150,000 135,602 143,176 750,000 7.5 6.6 6.5 5.5 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 100,000 500,000 5.0 4.4 (Fiscal Year) (Fiscal Year) 50,000 250,000 2.5 0 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 (Fiscal Year) (Fiscal Year) (Fiscal Year) Third-party comments 3 The Nankai Electric Railway CSR Report 2016 The Nankai Electric Railway CSR Report 2016 4 Message from the president ～ To our stakeholders ～ In addition to making the most of inbound demand, we will vigorously pursue the increase of value along highlights our railway lines as we strive to achieve the goals of nonfinancial and Financial our Medium Term Business Plan. Introduction included refurbishing the Koya limited express trains with special features and the sale of special tickets for inbound Our group is advancing the SHINTEN 133 Plan, which is the foreign visitors. In addition, we worked to promote utilization medium term business plan we established to cover the of the Airport Line by, for example, operating Rapi:t limited Message from the president three-year period from fiscal 2015 to 2017. This plan is express trains with a special design in a tie-up with the film positioned as “three years to cultivate deeply and develop Star Wars: The Force Awakens. Moreover, we installed the even more” the business foundations that we have built thus new Semboku Liner limited express in order to increase the far. Following it, we are undertaking various measures with speed between stations in Osaka City and along the “strengthen Semboku-related business,” “expand Kansai Sembokukosoku line. As a result, the number of passengers International Airport and inbound tourism business” and carried on our line increased 2.8％ in fiscal 2015 compared “increase the drawing power of the Namba area business” to the previous fiscal year. Medium Business Term Plan as the three fundamental policies (most important issues). For our bus business, we sought to increase the Furthermore, we have established “assurance of safety and convenience of access to the Kansai International Airport by, peace of mind,” “emphasis on the environment,” for example, realizing the first 24-hour access to a Japanese “compliance thoroughness” and “pursuit of a customer airport with an airport shuttle bus route to Osaka City.