Corporate Report 2019
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Corporate Report 2019 If you have any questions or comments about this report, please contact: SDGs Management & Promotion Department Nankai Electric Railway Co., Ltd. (Secretariat of the Environmental Measures Promotion Committee) 2-1-41 Shikitsu-higashi, Naniwa-ku, Osaka 556-8503, JAPAN Tel : 06-6631-6300 Fax : 06-6632-6257 URL : http://www.nankai.co.jp/ Nankai Electric Railway Co., Ltd. Corporate profile Company information by segment is current as of July 1, 2019. Transportation Corporate Philosophy Business With wisdom and dynamism, forging the way to the future Contributing to the Community Justifying public trust as an all-round lifestyle provider, and building a better society 37 companies Putting the Customer First Railways, rail track management, buses, ocean freight, cargo transportation, train maintenance Providing excellent services for the customer, bringing living comfort and cultural enrichment Future Challenges Real Estate Meeting the needs of coming generations with bold energy and creativity Business A Dynamic Workplace Creating a workplace brimming with vitality, harnessing the expertise and personal strengths of every employee Corporate Outline As of March 31, 2019 Company Name: Nankai Electric Railway Co., Ltd. Established: December 27, 1885 Head Ofce: 2-1-41 Shikitsu-higashi, Naniwa-ku, 4 companies Osaka, 556-8503, JAPAN Real estate leasing, real estate sales Website: http://www.nankai.co.jp/ Paid-in Capital: ¥72,983,654,121 Distribution Operating Revenue: ¥100.026 billion (head corporation) Business ¥227.424 billion (consolidated) No. of Shareholders: 50,630 Shiomi- Namba No. of Employees: 2,624 (head corporation) bashi Ebisucho 9,168 (all group companies) Tennoji Station District Managed track: 154.8 km Rolling Stock: 696 Hankai Tramway Sakai Hamadera Nakamozu Ekimae 10 companies Takashinohama Shopping Center management, Business operations inside the Station Concourse Sembokukosoku line Composition ratio of operating revenue by segment Kansai Airport Izumi Chuo Construction Kishiwada Leisure Services Construction Business Other Business Business 17.4% 1.0% Transportation Leisure Services Business Business 39.3% Tanagawa Misakikoen Hashimoto 15.2% Osaka Kada Wakayama Distribution Business Real Estate Business 22 companies 4 companies Gokuraku- Amusement Park management, travel agency, hotels and ryokan Construction Business Wakayamashi bashi 12.9% 14.2% Japanese inns, Leasing of facilities for motorboat racing, building Koyasan Wakayamako Note: The composition ratio is the ratio of operating revenues management and maintenance businesses, printing, advertising agency including transactions between segments. Editorial Policy Contents In addition to CSR information, we are including information about business results, strategy, nance and other management factors. Corporate prole .............................................. 1 Report on CSR efforts ................................22 Financial report ............................... 45 For CSR information, we refer to GRI standard and provide comprehensive reporting. Financial and nonnancial highlights .................... 3 ■ Safety ..................................................23 Applicable Term: Fiscal 2018 (April 1, 2018 to March 31, 2019). Some information, however, is from outside this period. Message from the president ............................... 5 ■ The Environment .....................................27 Organization covered: Nankai Electric Railway Co., Ltd. Environmental reporting, however, also covers the activities of Semboku Rapid Railway Medium Term Business Plan ............................. 11 ■ Society .................................................33 and other group companies. Business overview by sector ............................ 17 ■ Governance ...........................................39 Guidelines referenced: Environmental Reporting Guidelines, 2018 Edition by the Ministry of the Environment, Environmental Accounting Guidelines for Private Railway Businesses 2008 by the Association of Japanese Private Railways, and the GRI Standards. 1 The Nankai Electric Railway Corporate Report 2019 The Nankai Electric Railway Corporate Report 2019 2 Financial and nonfinancial highlights highlights Financial and nonfinancial nonfinancial and Financial Operating revenue*1 Ordinary income Profit attributable to owners of Number of passengers Railway Revenue Number of employees parent ¥227,424 mil. ¥23,898 mil. ¥13,023 mil. 239 mil. ¥58,445 mil. 9,168 (Consolidated) (¥ millions) (¥ millions) (¥ millions) (Thousands of people) (¥ millions) (Individuals) 300,000 30,000 29,733 20,000 240,000 239,835 60,000 10,000 236,153 238,479 55,911 57,187 57,953 58,445 27,110 27,111 17,467 233,301 53,473 8,808 8,853 9,104 9,158 9,168 16,452 227,874 227,424 23,898 227,031 210,995 219,065 221,690 22,001 15,000 14,719 7,500 200,000 20,000 12,612 13,023 220,000 40,000 10,000 5,000 Message from the president 100,000 10,000 200,000 20,000 5,000 2,500 2,577 2,567 2,577 2,615 2,624 0 0 0 0 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) Consolidated Nankai Electric Railway only Net assets Total assets Dividend per share*2 Number of female employees Number of new female hires Investments for safety (16 main companies*4) (16 main companies*4) ¥241,561 mil. ¥918,385 mil. ¥30 510 67 9.7 billion Medium Business Term Plan (Individuals) (Individuals) (¥ millions) (¥ millions) (Yen) (%) (%) (¥ millions) 300,000 1,000,000 40 600 21 75 73 30 12,000 909,547 894,621 890,798 902,045 918,385 66 67 494 510 232,835241,561 483 9,216 9,755 219,288 750,000 30 30 30 30 30 30 441 435 55 56 9,000 200,000 199,991 203,939 400 14 50 20 7,942 6,797 6,865 14.9 7.417.41 15.9 500,000 20 13.6 6,000 8.10 12.6 7.26 7.21 7.86 88.788.7 100,000 200 7 25 10 250,000 10 3,000 0 0 0 0 0 0 0 0 Business overview by sector 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (Fiscal Year) (Fiscal Year) (Fiscal Year) Number of female employees (Fiscal Year) New female hires (Fiscal Year) (Fiscal Year) Ratio of female employees Female hiring rate (number of female employees/number of all employees) Number of “Customer’s Voice” CO2 emissions Rolling stock energy consumption Return on equity (ROE) Return on assets (ROA) Interest-bearing debt/ (Nankai Electric Railway only) 5 3 cases rate* EBITDA* ratio 5.8% 1.4% 8.5 2,306 142,899 t-CO2 5.91 kl/10,000 km (%) (%) (Number of cases) (t-CO2) (t-CO2 / ¥ millions) (kl/10,000 km) 10.3 2.1 10.0 2.0 12.0 3,000 300,000 2.10 7.00 1.8 1.91 Report on CSR efforts 2,719 1.88 1.79 8.1 1.6 9.6 2,563 17.117.1 2,327 6.33 7.5 1.5 1.4 9.0 8.4 8.5 2,306 6.5 6.8 1.4 8.3 1.43 6.12 6.12 6.05 7.6 2,000 200,000 1.40 6.00 5.91 5.8 1,766 175,756 177,806 171,266 170,258 5.0 1.0 6.0 142,899 1,000 100,000 0.70 5.00 2.5 0.5 3.0 0 0 0 0 0 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) CO2 emissions Financial reportFinancial CO2 emissions rate (CO2 emissions/operating revenue (Nankai Electric Railway only)) *1 Operating revenue does not include consumption tax, for example. *4 Nankai Electric Railway Co., Ltd., Semboku Rapid Railway Co., Ltd., Nankai Bus Co., Ltd., Kansai Airport Transportation Enterprise Co., Ltd., Tokushima Bus Co., Ltd., *2 Values reflect adjustments for reverse stock split made October 1, 2017. Nankai Ferry Co., Ltd., Nankai Vehicles Service Engineering Co., Ltd., Nankai Fudosan Co., Ltd., Nankaishoji Co., Ltd., Nankai FD Service Co., Ltd., Nankai Food System *3 EBITDA (earnings before interest, taxes, depreciation and amortization) = Operating Income + Depreciation and Amortization Co., Ltd., Nankai Travel International Co., Inc., Suminoe Enterprise Co., Ltd., Nankai Building Service Co., Ltd., Nankai Tatsumura Construction Co., Ltd., Nankai “Operating Income” and “Interest-bearing debt balance/EBITDA ratio” for fiscal 2017 and 2018 were calculated using values that included dividend income. Management Service Co., Ltd. *5 Energy used by railway business (kl)/total operating distance of all railroad cars (10,000 km) 3 The Nankai Electric Railway Corporate Report 2019 The Nankai Electric Railway Corporate Report 2019 4 Message from the president highlights In the first year of our medium term management plan, nonfinancial and Financial we were able to steadily advance a variety of measures toward realizing our “ideal form” for fiscal 2027. On August 24, 2019, cracking was discovered on a Limited In addition, considering the above business results and Message from the president Express rapi:t car, and this was recognized as a serious keeping reserves to strengthen management foundations, for incident. example, we provided dividends to our shareholders this We apologize deeply for causing great worry to everyone period totaling 30 yen per share, with midterm and concerned, starting with our customers who use our train end-of-term distributions of 15 yen each. lines. Regarding this incident, we are making maximum effort to discover the causes and implement countermeasures. In Our approach to Nankai Group Business Vision addition, we are striving to restore confidence so that 2027 customers can use our trains with peace of mind and working Medium Business Term Plan to increase safety and assure reliable transportation. Even though positive factors exist, including transportation income growth due to increasing numbers of inbound travelers, Overview of business results in this period the business environment surrounding our corporate group is expected to change even more drastically in the future due to (fiscal 2018) the progress of population decline and the advancement of IT, for example.