Nankai Electric Railway : Group Integrated Report 2023

• Inquiries about this report:

Sustainability Promotion Department, Financial Strategy Group, Nankai Electric Railway Co., Ltd.

2-1-41Shikitsu-higashi,Naniwa-ku, Osaka 556-8503, Japan E-mail:[e-mail]

URL: https://www.nankai.co.jp/en/company.html

The Nankai Electric Railway Group has created an environmental slogan and logo to use as it actively undertakes further environmental activities. The train car and driver depicted as a green leaf symbolize coexistence between the natural environment and local communities, thereby expressing our intent to keep moving forward with our customers.

Nankai Group Integrated Report 2023

Integrated

Report

Nankai Group Integrated Report 2023

Nankai Electric Railway Co., Ltd.

Nankai Electric Railway Co., Ltd.

Introduction

Introduction Messages from Management Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation Business Overview and Strategy Management Information

Corporate philosophy

Nankai will explore the future with wisdom and vitality.

Contributions to society

As an integrated lifestyle company that creates the future, we will respond to the trust society bestows upon us and contribute to its development.

Customers first

We will pursue comfortable living and enriched culture, providing the best services to customers.

Taking on challenges for the future

With strong vitality and creativity, we will take on the challenges in line with the needs of the new times.

Lively places for people to work together

We will create cheerful and lively places for people to work together, capitalizing on each person's wisdom and character.

Contents

Introduction

Editorial Policy	3
Our History of Value Creation	5
The Nankai Group's Presence	7
Financial and Non-financial Highlights	9
Corporate Image in 2050	11

Messages from Management

CEO's Message	13
Shifting to a New Structure	18
COO's Message	19

Sustainable Management to Support Transformation (Materiality Initiatives)

Further Seek Safety, Security, and Satisfaction	51
Thriving and Friendly Community Development	55
Create a Future Full of Dreams	57
Achieve an Enriched Life	59
Develop a Workplace and Staff in a Way That Enables Each Person to
Put Their Abilities to Use	61
Contribute to Preserving the Global Environment	67
Bolster a Corporate Foundation That Is Sincere and Fair	77
Outside Director Roundtable	89
List of Officers	93

Group management policies

Thoroughly ensure safety and security

We will ensure safety and security in all our businesses, including railway services.

Environmentally driven

We see the preservation of the global environment as our mission and place the environment at the heart of our businesses.

Ensuring compliance meticulously

We will conduct fair and healthy corporate activities, complying with the law while recognizing our social responsibilities.

Putting the customer's perspective first

As a community-based company, we will put our customers first and ensure that activities cater to their requirements.

Sustainability Policy

We will create collaboratively and cooperate with various stakeholders, including community residents, local governments and businesses, particularly in the areas along our railway lines. We will also seek both the increase of value as a sustainable company and the realization of a sustainable society by putting our Corporate Philosophy into practice.

Transformation toward Achieving Nankai's "Corporate Image in 2050"

Our Value Creation Process	23
The Nankai Group's Strengths, Management Resources,
and Value Provided	25
Major Sustainability Themes (Materiality)	27
History of the Medium-term Management Plan	29
Overview and Progress of the "Kyoso 140 Plan"	31
Sustainable Management of the Public Transportation Business	33
Message from Head of Public Transportation Group	33
Evolving into a Comprehensive Mobility Business	36
Developing the Most Popular Areas along Our Railway Lines and
Deepening and Expanding the Real Estate Business	37
Message from Head of Community Development Group	37
Future Exploration	42
Message from Head of Corporate Strategy Group	42
Financial Strategies	45
Message from Head of Financial Strategy Group	45
Human Resource Strategies	47
Message from Head of General Administration &
Human Resources Group	47
Special Feature: Enriching Human Capital to
Support Value Creation	48

Business Overview and Strategy

Current State of Segments	97
Transportation Business	98
Real Estate Business	99
Distribution Business	100
Leisure and Services Business	101
Construction Business	102

Management Information

Main Business Indices	103
ESG Data	105
Corporate Information	109
Stock Information	110
Information disclosure matrix
Financial Information	Non-financial Information
z Announcement of Financial Results,	z Meetings with stakeholders
Financial Results Briefing
Dialogue z Meetings with institutional investors
and analysts
z General Meeting of Shareholders

Integrated Report

Brand slogan

Bound for good times

At the Nankai Group, we will connect and spread the joy of relaxation and excitement.

To this end, we will pursue safety, convenience, comfort, and good communication, bringing new value and boosting customer satisfaction. We will aim to be loved and selected as the Nankai Group, and we will strive to create areas along our railway lines in which people, communities, and lifestyles are optimistic for a better future, and to create areas that are sustainable and realize a bright future.

Description of the cover

The Nankai Group's logo expresses our corporate attitude of beating our wings powerfully toward the future. We started off as a trailblazer in the field of privately owned railways, and have advanced through the ages and through communities with a pioneering spirit. The cover design includes the Nankai Group's logo as a motif, and expresses the endeavors made in line with our "Corporate Image in 2050" further in the future, as well as a sparkling crystalline shape and the warmth of the Nankai Group as it remains close to the local community.

Integrated

Report

南海グループ 統合報告書 2023

南海電気鉄道株式会社

	z Financial Results	z ESG Data
Reports	z Securities Report	z Corporate Governance Reports
z Materials for Financial Results	z Safety Report
		Briefings
	z Fact Book
	z Monthly Data
		Website  IR Information		Website  Sustainability
Web

Notes on future forecasts

The performance predictions and other details in this report related to the future indicate the judgment of Nankai Electric Railway based on information that is available at the time of writing, so these details may contain risk or uncertainty. Please note that the actual business performance may differ from forecasts due to various factors.

1

Nankai Group Integrated Report 2023

Nankai Group Integrated Report 2023

2

Introduction

What the Nankai Group creates

An ever-changing future

We use our power as a corporation to bring changes to local communities.

A total of 138 years have passed since we were established

as the first railway company in Japan to be entirely funded by private capital.

With a focus on the southern Osaka and Wakayama area,

the Nankai Group has worked to build a transportation network that covers both land and sea,

while also supporting people's lives and helping communities to grow.

Our goal is to drive highly diverse community development toward 2050.

Based on the four elements of "community coexistence and co-creation, diverse lifestyles,"

"mobility,""diversity and globality" and "Nankai identity,"

the Nankai Group will undergo significant change under the banner

"With an entrepreneurial spirit, Nankai is firmly committed to creating 'DiverCity'* in Kansai."

The Nankai Group is bringing together all its knowledge and energy to create new value and

achieve its goal of creating DiverCity in Kansai.

* DiverCity: "DiverCity" is a term created by combining "Diversity" and "Diverse City (city filled with diversity)" that we seek to realize.

Introduction Messages from Management Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation Business Overview and Strategy Management Information

Editorial Policy

Purpose of publication and content of the report

The Nankai Group seeks to both "increase its value as a sustainable company"

and help to "realize a sustainable society" by putting our corporate philosophy into practice.

We have compiled and summarized details on our approach, strategies, and specific initiatives in this report to broadcast the message to all our stakeholders about our ongoing growth and the roadmap toward value creation at the Nankai Group.

Key points in the Integrated Report 2023

• Overall concept

We view value creation at the Nankai Group as a way to realize our "Corporate Image in 2050."To this end, we have positioned information on "making steady progress in executing our growth strategy," and "sustainable management to support transformation (materiality initiatives)" as core content in this report.

We have leveraged our skills in the editorial process to express the energy of the Nankai Group as it continues to change.

	This section offers an overview of the past, present, and future of the Nankai Group. It
Introduction	describes how the value we provide has changed in tune with the times, our current
businesses, revenue structure and presence, and the "Corporate Image in 2050" that
	we aim to achieve in the future.
	This section features powerful messages from Chairman Teruhiko Achikita and
Messages from Management	President Nobuyuki Okajima, who are leading daring endeavors to attain our
"Corporate Image in 2050," to change the organization, and to build a new corporate
	culture.
	This section describes our value creation activities, management capital, and
Transformation toward Achieving	management plan for realizing our "Corporate Image in 2050." It includes a special
Nankai's "Corporate Image in 2050"	feature on our approach and efforts to enrich human capital to support value
	creation.
	This section gives a detailed description of the issues we will work on within each of
Sustainable Management to Support	the three aspects of ESG with regard to our materiality-major themes that may
Transformation	impact the Nankai Group's corporate value. The "Outside Director Roundtable"
(Materiality Initiatives)	includes an overview of the governance system through a talk between three
	Outside Directors.
	This section provides an overall description of the Nankai Group's business portfolio,
Business Overview and Strategy	and shows information that gives insight into the present and future of each
business. It complements the data that can be helpful when engaging in dialogue
	with stakeholders.
Management Information	This section gives supplementary information that can help in understanding and
analyzing the company.

Applicable term

FY2022 (April 1, 2022 to March 31, 2023). Some information, however, is from outside this period.

Organizations covered

Nankai Electric Railway Co., Ltd. and 54 consolidated subsidiaries

Guidelines referenced

• "The International Integrated Reporting Framework" by the z "Guidance for Collaborative Value Creation" by the Ministry of

IFRS Foundation	Economy, Trade and Industry
z Final Report: "Recommendations of the Task Force on Climate-	z "The GRI Sustainability Reporting Standards" by the Global
related Financial Disclosures (TCFD)"	Reporting Initiative
z "The Environmental Reporting Guidelines, 2018 Edition" by
the Ministry of the Environment

3

Nankai Group Integrated Report 2023

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Introduction Messages from Management Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation Business Overview and Strategy Management Information

Introduction

Our History of Value Creation

Based in Namba, the Nankai Group chiefly serves the southern Osaka and Wakayama region to enrich people's lives in areas along its railway lines through efforts that have helped the company grow together with local communities.

With a 138-year history of staying close to changes in the times and in people's values, the Nankai Group will continue to be a popular choice as we provide sustainable value going forward.

Our company was founded in 1885 as the first railway company in Japan to be entirely funded by private capital.

Through numerous extensions, mergers, and divisions, we built a transportation network that is irreplaceable for many people who need to reach their destination.

Besides our railway-related ventures, we have also made great strides in developing bus, tramway ferry, and other businesses that connect individual "points" at communities to form "lines" in a network within our business area.

We have gone one step further to support wide-ranging "planar" benefits for the areas along our railway lines, such as with urban center development in Namba Parks; large-scale residential area development in suburban areas along our railway lines; and community revitalization projects carried out in collaboration with local governments and companies along our railway lines, plus other initiatives

that utilize the ample resources and human networks in the area.

The Nankai Group places a strong focus on safe and secure mobility services as it continually makes people's lives more convenient through a wide range of businesses. We seek to solve social issues and realize an enriched, sustainable society that exudes optimism for a better future, while drawing from our roots within

the local communities built through our continual support for people, towns, and lifestyles over the last 138 years.

Operating revenue*	200
billion

yen

150 billion yen

100 billion yen

50 billion yen

* Data up to FY1982 represents non-consolidated results at Nankai Electric Railway, while data from FY1983 onward represents consolidated results.

1885	1947	1950	1955	1960	1965	1970	1975	1980
				1885 - 1945
		Period				1950s - 1980s			1990s
			(From our founding until the end of WWII)

1985 1990 1995

Period2000s

2000 2005 2010

2010s

2015

2020

2022

2020s -

Social trends

Private capital employed to build railway networks in line with the development of modern industry

The value we provide

Built an extensive railway network spanning from southern Osaka to Wakayama, serving as the foundation for local modernization

The precursor to our company was founded by 19 people including Jutaro Matsumoto, a prominent figure in Osaka's business community. After launching a service between Namba and Sakai (Yamatogawa) in 1885, this organization expanded its lines across southern Osaka and Wakayama. The pioneering spirit, strong vitality, and enterprising attitude from that time still remains at our company.

Rapid economic growth following World War II; increasingly diverse lifestyles

Developed a wide range of businesses in the areas along our railway lines and enriched people's lives

In line with the diversification in people's lifestyles, we executed many large-scale projects in rapid succession alongside initiatives to develop our transportation network, such as engaging in large-scale residential area development in suburban areas along our railway lines, opening shopping centers, and managing leisure centers. Ever since then, we have helped to develop the areas along our railway lines through our diverse businesses, and have continually supported people's lifestyles.

Rapid change at the end of the 20th century; opening up to the world with the opening of Kansai International Airport

Opened the Airport Line to serve as a bridge between Kansai and the world

In 1994, we opened the Airport Line to provide access to the newly opened Kansai International Airport. We also started service for our iconic "Express train Rapi:t."

This line triggered development in the areas along our railway lines with a view toward increasing exchange with the world.

Social trends

Decline in the productive population, maintenance for road networks, and adverse conditions for the railway business

The value we provide

Created liveliness through redevelopment in Namba, and overcame the aftereffects of Japan's economic bubble bursting as we took on challenges for the future

We completed our Namba district redevelopment project that had been underway for many years. "Namba Parks" saw its grand opening at this time, giving a major boost to development in the Minami area of Osaka. We overcame many challenges in a harsh business landscape, such as the decrease in railway passenger numbers and a fall in land prices. Our experience from this has fueled growth in the next generation.

Growth in inbound tourism; Osaka selected for EXPO 2025; and vitality for the Kansai economy

Grew with a glocal* perspective and created appeal for the areas along our railway lines

We captured demand from overseas tourists, brought the current Semboku Rapid Railway into our group, opened NAMBA SkyO, and carried out various other activities as we grew together with the local area. We continue to play a role of linking the areas along our railway lines with many people both in Japan and abroad, as well as reinforcing connections with people and the areas along our railway lines.

• "Glocal" is a term created by combining"global" and"local" that describes thinking and acting from a global perspective while taking the characteristics of the local area into account.

The COVID-19 pandemic brought significant changes to people's lives and values regarding mobility

Seeking to realize an enriched and sustainable society with the Spirit of Nankai's collaborative creation ("Kyoso")

The future is uncertain in a post-COVID world. In light of this, we established our "Corporate Image in 2050" to fulfil our responsibility to continually provide our services. Going forward, we aim to obtain the most popular areas along railway lines and realize a sustainable society under the banner of collaborative creation with stakeholders.

1885

1950

1994

2003

2014

2020

The original Namba Station

Kita Osaka Truck Terminal Building No. 1

Opened a line spanning 7.6 km between Namba and

Built the Osaka Stadium as the home base for the

Opened the Airport Line to link Kansai International

Opened "Namba Parks" with the concept of the city,

Acquired all Osaka Prefectural Urban Development stock

Promoted functionality enhancement of logistics

Yamatogawa.

Nankai Hawks professional baseball team.

Airport with Namba.

people, and nature coexisting in harmony

and brought it into the Group as Semboku Rapid Railway

facilities

1936

1978

1995

2004

2018

2023

Deployed Japan's first ever air-conditioned train car.

Opened "Namba City," and also entered the real estate

Our iconic "Express train Rapi:t" won a Blue Ribbon

Koyasan registered as a World Heritage Site at the end

Opened "NAMBA SkyO" as a hub for international

Opened "Namba Parks South," a new location in the

and distribution businesses.

Award.

of one of our railway lines

exchange

southern part of the Namba area

5

Nankai Group Integrated Report 2023

Nankai Group Integrated Report 2023

6

Introduction

The Nankai Group's Presence

Introduction Messages from Management Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation Business Overview and Strategy Management Information

Nankai Electric Railway runs two major lines: the Nankai Line connecting Namba with Senshu and Wakayama, and the Koya Line to the Koyasan World Heritage Site. On top of our railway business, we leverage these lines to support people's everyday lives as an essential company for the local area through many different projects including shopping centers and housing development.

			Namba
		Shiomibashi	Ebisuchō
Osaka				Tennoji-Ekimae	Corporate profile
				(as of March 31, 2023)
Prefecture
Tokushima				Hankai Tramway
			Company name	Nankai Electric Railway Co., Ltd.
Prefecture
			Sakai		Founded	December 27, 1885
		Hamadera-Ekimae	Nakamozu	Registered Head Office	2-1-41Shikitsu-higashi,Naniwa-ku,
Wakayama				Osaka 556-8503, Japan
	Takashinohama
Prefecture		Semboku		URL	https://www.nankai.co.jp/en/
			Rapid			company.html
			Railway

Segment operating revenue and operating income (in FY2022)

Others

	Construction Business			1.2 %		Construction Business
				9.0%
17.5 %				2,963 million yen
43,662 million yen					1,889 million yen
		Transportation
Leisure and			Leisure and
Operating	Business
Services Business
Services Business
38.2 %
revenue
			16.9 %
15.9 %		221,280		95,532 million yen
	39,851 million yen	million yen			3,550 million yen
	Distribution Business			Real Estate		Distribution Business
			Business
			8.1%
	9.4 %				17.8 %
	23,607 million yen			44,627 million yen		1,710 million yen

* The percentages represent the ratios to operating revenue and operating income, including those from intersegment transactions.

	Others
	0.8%
	175 million yen
	Transportation
Operating	Business
5.5%
income
21,023	1,152 million yen
million yen	Real Estate
	Business
	59.7 %
	12,570 million yen

			Share capital	72,983 million yen
Kansai-Airport	Kishiwada	Kawachi-	Operating revenue	221,280 million yen
Izumi-chuo	nagano
	Number of shareholders	51,688
	Osaka		Number of employees	2,635 (non-consolidated);
			8,905 (consolidated)
	Prefecture
Tanagawa

Transportation		Nankai by the numbers
• Railway Business			Operating kilometers on railroads		Number of train cars
Business				(Nankai + Semboku)		(Nankai + Semboku)
• Tramway Business			169.1km		808
			• Bus Business
			• Ocean Freight Business			Number of passengers transported per year		Number of stations
35		• Cargo Transportation Business
			(Nankai + Semboku)		(Nankai + Semboku)
	• Vehicle Maintenance Business			245,902 thousand		105
companies

Misakikoen		Hashimoto
Kada	Wakayama
Wakayamashi	Prefecture	Gokurakubashi
Wakayamako		Koyasan

Real Estate

Business

• Real Estate Leasing Business
• Real Estate Sales Business

6

companies

Nankai by the numbers

Size of major rented office areas in the Namba area

Approx.100,000m2

Size of rented logistics facilities

Approx. 460,000m2

Number of built-for-sale condominiums

123

Kansai International Airport, one of Japan's major international airports

Image courtesy of Kansai Airports

The world's gateway to Kansai at the Namba terminal station

7	Nankai Group Integrated Report 2023

Mozu-Furuichi Kofun Group,

a World Heritage Site

Koyasan, a World

Heritage Site

Distribution

Nankai by the numbers

Namba City Sales

Namba Parks Sales

Business

Centers

30.9 billion yen

22.1billion yen

• Management of Shopping

Number of customers going

Number of customers going

• Station Premises Business

through cashiers

through cashiers

9

• Others

10.06 million

5.82 million

companies

Leisure and

Nankai by the numbers

Number of funeral halls

• Hotels and Traditional

Number of customers going to Boat

• Travel Agency Business

Services

• Boat Racing Facility

Race Suminoe

16

Japanese Inns

1.21million

Business

Leasing Business

• Building Management and

Number of golf facilities

20

Maintenance Business

2

• Funerary Business

companies

• Others

Construction

Nankai by the numbers

Monetary amount of orders received for construction works

Business

(Nankai Tatsumura Construction Group)

• Construction Business

31.0 billion yen

Monetary amount of orders received for civil engineering works

4

(Nankai Tatsumura Construction Group)

companies

7.8 billion yen

* Nankai Electric Railway Co., Ltd. (the Company) is included in duplicate in the Transportation, Real Estate, Distribution, and Leisure and Services segments. Semboku Rapid Railway Co., Ltd. is included in

duplicate in the Transportation and Real Estate segments.

* The Nankai Group comprises a total of six segments, namely the five segments given above in addition to "Other Business (eight companies)," and consists of 78 companies, namely Nankai Electric Railway

Co., Ltd., 54 consolidated subsidiaries, 17 non-consolidated subsidiaries, and 6 non-equity-method affiliates.

Nankai Group Integrated Report 2023

8

Introduction

Financial and Non-financial Highlights

Financial

Introduction

Messages from Management

Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation

Business Overview and Strategy

Management Information

Non-financial

Operating revenue *1*2

221,280

227,424	228,015			million yen
190,813	201,793
2018	2019	2020	2021	2022 (scal year)

Ordinary income			18,965
	31,677			million yen
23,898
			9,931
		1,854
2018	2019	2020	2021	2022 (scal year)

Operating income			21,023
	35,223			million yen
27,745
		5,552	12,190
2018	2019	2020	2021	2022 (scal year)

Prot or loss attributable to	14,623
owners of the parent
	million yen

	20,811
13,023
		−1,861	4,021
2018	2019	2020	2021	2022 (scal year)

Number of employees

8,905

9,168	9,205	9,133	8,887
2,624	2,639	2,628	2,601	2,635
2018	2019	2020	2021	2022 (scal year)

Consolidated Non-consolidated

Number of accidents, etc. in the railway business

for which it is responsible*5	2

	4
			2
1
		0
2018	2019	2020	2021	2022 (scal year)

Demographics along our railway lines	−1,459
(social increase or decrease) * Excluding Osaka City

−4,034	−2,239	−4,525	−6,864
2018	2019	2020	2021	2022 (calendar year)

Customer satisfaction index
	65.1	64.7	65.6
63.0
				63.7 points
2018	2019	2020	2021	2022 (scal year)

Revenue from passenger transport	46,457
(non-consolidated)

million yen

58,445	57,636
		37,092	39,033
2018	2019	2020	2021	2022 (scal year)

Total assets				935,113
918,385	925,058	962,229	920,976	million yen
2018	2019	2020	2021	2022 (scal year)

Passengers carried (non-consolidated)

203,771

239,835	239,454			thousand
		178,164	182,851
2018	2019	2020	2021	2022 (scal year)

Net assets and capital adequacy ratio

274,586

million yen

241,561	256,003	258,569	260,716
			27.9%
25.1	26.4	25.6	26.9
2018	2019	2020	2021	2022 (scal year)

Net assets Capital adequacy ratio

Number and proportion of female managers
(consolidated)*6	38

			35
	25	28
20			5.2 %
	3.1	3.5	4.4
2.5
2018	2019	2020	2021	2022 (scal year)

Number of female managers Proportion of female managers

Average acquisition rate of annual paid leave

(non-consolidated)

90.7	92.6	90.9	90.1	96.9 %
2018	2019	2020	2021	2022 (scal year)

Number and proportion of female employees hired

(consolidated)*7	94

86	103	88
	61
			22.1%
18.2	19.4	21.1	19.3
2018	2019	2020	2021	2022 (scal year)

Number of female employees hired Proportion of female employees hired

Male workers who have acquired childcare

leave, etc. and acquisition rate of leave 48 for childcare purposes (non-consolidated)

90.6 %

		13		18	20
8	9.5	16.5		44.4
		31.5
2018	2019	2020	2021	2022 (scal year)

Number of male workers who have acquired childcare leave, etc.		Acquisition rate of leave for childcare purposes

Dividend per share and dividend payout ratio*3 25.0

30.0	32.5			yen
	25.0	25.0
			70.4
26.1	17.7			19.4 %
2018	2019	2020	2021	2022 (scal year)

Dividend per share Dividend payout ratio

Return on equity (ROE)
Return on assets (ROA)
	8.8
5.8				5.7 %
1.4	2.3		1.6
	1.6 %
	−0.2
		−0.8	0.4	2022 (scal year)
2018	2019	2020	2021

Return on equity (ROE)

Return on assets (ROA)

CO emissions and emission intensity (consolidated)*8	Environmental building			3
309,902				192,162	(green building) certication*9
			t-CO
	234,679	202,632	207,698				2	2
1.57	1.02	1.06	1.03	0.87	1	1
				t-CO/
				million yen
2013	2019	2020	2021	2022 (scal year)	2018	2019	2020	2021	2022 (scal year)
CO emissions	CO emission intensity

Capital investment amounts

27,872

million yen

43,538	47,917
		27,966	21,408
2018	2019	2020	2021	2022 (scal year)

Interest-bearing debt/EBITDA ratio*4 times Net interest-bearing debt/EBITDA ratio*4 times

14.2

	13.0	11.6
8.5		9.6 times
	10.7
7.2		8.8 times
8.2	6.9

2018	2019	2020	2021	2022 (scal year)

Ratio of energy-saving vehicles adoption

(Nankai Electric Railway and Semboku Rapid Railway)

		61.7	63.2	63.2 %
	60.2
56.5
2018	2019	2020	2021	2022 (scal year)

Cumulative number of stations with				59
renovated restrooms (non-consolidated)
(starting from FY2016)	50		56
28		42
2018	2019	2020	2021	2022 (scal year)

Interest-bearing debt/EBITDA ratio Net interest-bearing debt/EBITDA ratio

*1 Operating revenue does not include consumption tax, etc.

*2 The "Accounting Standard for Revenue Recognition," etc., has been applied since the beginning of FY2021. *3 There was a net loss in FY2020, so the dividend payout ratio is not shown here.

*4 EBITDA: Operating income + Dividend income + Depreciation and amortization

*5 Incidents in the railway business, transportation failures (limited to delays or suspensions in service for at least three hours), and other incidents for which we are responsible. *6 Definition up to FY2021: Management positions refer to supervisory and managerial positions that are not subject to working-hour restrictions, etc.

Definition from FY2022 onward: Total of workers in "manager level" and "positions higher than manager level (excluding executives)."

*7 Refers to the number of full-time employees (total of new-graduate hires, mid-career hires, and part-time employees hired as full-time employees).

*8 CO2 emission intensity (CO2 emissions divided by operating revenue)

*9 Based on the DBJ Green Building certification.

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Nankai Group Integrated Report 2023

Nankai Group Integrated Report 2023

10

Introduction

Corporate Image in 2050

With our roots within the local communities, NANKAI with an

Introduction Messages from Management Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation Business Overview and Strategy Management Information

Process for establishing our "Corporate Image in 2050"

entrepreneurial spirit is firmly committed to creating "DiverCity" in Kansai

In March 2022, the Nankai Group announced its New Medium-term Management Plan, the "Kyoso 140 Plan" covering FY2022 to FY2024, as well as its "Corporate Image in 2050."

The landscape surrounding our businesses has continually changed in recent years, and the outlook for the future is unclear. The COVID-19 pandemic has accelerated these changes even further. We therefore set our "Corporate Image in 2050" to clarify the direction we should take in a society where change is a constant. We are doing this by extending our perspective further into the future and engaging in thorough deliberation and discussions regarding the kind of company we want to be in 2050 and how we should act in order to be wanted by society for years to come.

Some 70 people participated in establishing our "Corporate Image in 2050," ranging from young to mid-level employees, and it took about half a year from the start of the process until the vision was finalized. In the initial free discussion, all participants gave their opinions about how they would like the company to be in 2050 and how it should act in order to be wanted by society for years to come. These opinions were highly varied, ranging from those with an optimistic outlook to those with a considerable sense of crisis. We also identified many keywords in this process. Following this initial discussion, we held

multiple meetings with small groups while collating and narrowing down our keywords. The Board of Directors also held multiple discussion sessions. We worked with the keywords we had selected to establish our corporate image ("With our roots within the local communities, NANKAI with an entrepreneurial spirit is firmly committed to creating 'DiverCity' in Kansai") as well as the four elements of our corporate image (community coexistence, co-creation, and diverse lifestyles; mobility; diversity and globality; and Nankai identity).

Examples of keywordsraised in

Nankai's "Corporate Image in 2050"

Community coexistence and co-creation, diverse lifestyles

Together with local communities

Under the banner of being community-based, we will continue to treasure connections with people in communities and areas along our railway lines and work together with these people to create diverse communities where diverse groups of people can live in happiness.

Mobility

Mission as a public transportation operator

We will deepen the history and responsibility of safe and secure operations of the transportation business cultivated in areas along our railway lines to evolve into more diverse mobility business that connects "person and person," "community and community," and "people and communities" towards the future.

Step1	Step2	Step3	Step4
Interviews	Interviews	Deliberations	Deliberations
with young	between
with Corporate	at the Board
and mid-level	Corporate
Officers	of Directors
employees	Officers

discussions

• The Nankai brand means outstanding trust and safety in the areas along our railway lines
• Community development together with local people
• Namba has transformed into a location that is famous across Asia

With our roots within the local communities,

NANKAI with an entrepreneurial spirit is firmly committed

to creating "DiverCity"* in Kansai

Diversity and globalityNankai identity

Focus areas to achieve Nankai's "Corporate Image in 2050"

The four elements of our "Corporate Image in 2050" indicate our policy	resonates with our Nankai identity. We formulated the "Kyoso 140 Plan"
to uphold our fundamental stance while also pursuing new growth	as the Medium-term Management Plan to attain our "Corporate Image
strategies. They demonstrate our intention to view things with a global	in 2050."This plan outlines our aims to focus efforts on strengthening our
perspective, while also steadily moving forward in a grounded way that	core businesses and exploring new opportunities (future exploration).

	"Think Globally, Act Locally"	Strong will to open the way to the future on our own
	With Kansai International Airport as a gateway to the world (Asia),	Throughout the long history since its founding, the Nankai Group
	and Namba as a diverse community, we will foster diversity that	has built its culture and identity and created a new roadmap for the
	respects and enhances diverse values and individuality while staying	future. Keeping our mission and responsibility as a member of
	close to Namba, where diverse people from all over the world will	society in mind, we will take on new challenges, become a business
	continue to gather for the foreseeable future.	group that carries through on its commitments, and open up our
			own future.
* DiverCity: "DiverCity" is a term created by combining "Diversity" and "Diverse City (city filled	with diversity)" that we seek to realize.

Our passion encapsulated within our "Corporate Image in 2050"

Business areas of focus

Existing core businesses

 Comprehensive mobility business

 Public transportation business

 Various transportation services

 Community development/Real estate business

 Value creation in areas along our railway lines

through community development

New potential core businesses (future exploration)

• Businesses that contribute to improving value along our railway lines
• DiverCity-relatedbusinesses
• Tourism-relatedbusinesses
• New businesses, etc.

We have used our railway business based in Namba as a foundation for growth over many years alongside local communities, while placing southern Osaka and Wakayama as our main area for operations. Our stance will remain unchanged going forward, and our primary mission is to bring vitality to and create new value in the areas along our railway lines and to local communities. "With our roots within the local communities" represents our attachment to the areas along our railway lines that we have cultivated for almost 140 years, and our desire to pass on our pride to future generations.

At the same time, Kansai International Airport is a major growth driver for the areas along our railway lines because it provides direct links with the world and particularly with other countries in Asia. Our railway lines also serve Namba, an appealing city area that attracts many people of different nationalities. "Creating 'DiverCity' in Kansai" expresses our efforts to create a large business model in which we work with local people and continue growing together, as we build communities that serve as the leading choice for a place to live among a diverse group of people of multiple nationalities.

To bring this about, we must take on bold initiatives in many new areas, and build them into businesses."Entrepreneurial spirit"represents our desire to be a company that keeps working until we succeed.

Why 2050?

In corporate management, it is ideal to maintain a highly long- term perspective for the next 100 years. However, discussions on topics with this perspective tended to be abstract, as there are few factors that can be used to make decisions in the context of a rapidly changing society. On the other hand, if we set our eyes to 30 years in the future, we can expect the young employees hired by the current management personnel to have reached the core of management by that time, and we also anticipate global goals to be established for carbon neutrality and other social issues by then. As such, we targeted 2050 as approximately 30 years in the future, considering that this target would enable us to discuss matters in a more concrete way.

 Create value in Namba, famous across Asia

	Specific	approach in the four elements
	Community coexistence and	Mobility	Diversity and globality	Nankai identity
	co-creation, diverse lifestyles
		Position the provision of safe
Upholding our	Utilize the strengths that we	and secure public	Develop business in a	Deepen and expand the trust
have cultivated so far, and	transportation as our social	grounded way with a focus on
and business models that we
fundamental stance	drive community-based	mission, and continue to play	the areas along our railway
have cultivated to date
	initiatives	our role as a public	lines
		transportation business
	Work with local people and
	build communities that serve	Deepen the mobility business	Cast our eyes abroad and build	Take on bold initiatives in
New growth strategies	as the leading choice for a	so it has diversity with a	a new business model that
many new areas, and build
place to live among a diverse	medium- to long-term	targets people of other
	them into businesses
	group of people of multiple	perspective	nationalities
	nationalities

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Messages from Management

Introduction Messages from Management Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation Business Overview and Strategy Management Information

CEO's Message

Carve out a new path for the Nankai Group through changes and speed to realize our "Corporate Image in 2050"

Representative Director and Chairman, CEO

Teruhiko Achikita

Pictured in Parks Garden with a view of Centara Grand Hotel Osaka

Direction regarding management

The two keywords for leading the Nankai Group to new growth are "change" and "speed." We will focus on maintaining safe and secure services, while also building a corporate culture that flexibly accepts change.

The Nankai Group is engaged in collaborative creation and cooperates with various stakeholders, particularly in the areas along our railway lines. We also seek to both increase our value as a sustainable company and help realize a sustainable society by putting into practice our corporate philosophy: "Nankai will explore the future with wisdom and vitality."

It goes without saying that the public transportation business has been at the core of the Nankai Group across its 138 years of history. I believe that the Nankai Group's most important mission has been, and will always be, to work with our railway and bus businesses as the foundation for providing safe and secure mobility services in a stable and wide-reaching way to the many customers who rely on us.

In addition, the Nankai Group has earned strong trust and expectations from its customers and people in local communities through providing services rooted in the areas along our railway lines and local communities for many years. The phrase "areas along Nankai's railway lines" has come to be used by many people. The way people perceive the Nankai Group can sometimes overlap with their perception of the areas along our railway lines and of local communities. Examining these circumstances reaffirms my awareness that an increase in value within the areas along our railway lines results in a direct boost to corporate value. At the same time, I recognize the trust and expectations that people in the areas along our railway lines and local communities have in us, as well as the enormous responsibility we have to them.

As a company that deals with public transportation, it is imperative for the Nankai Group to strictly uphold our core tenets and maintain safe and secure services. Our earnest and steady efforts have helped foster a sense of security and trust among our customers, though this approach also makes it difficult to build a corporate climate and culture that values changing businesses flexibly with a freeform mindset. However, we are a private company that must survive within a harsh competitive environment, and so a corporate culture that dislikes and avoids change can result in a life-or-death struggle for the Nankai Group if left unchecked. This is because such an attitude could leave us unable to cater to customer needs within a dynamic business landscape.

The Nankai Group has promoted community development and revitalization through various projects on top of our public transportation business, such as real estate, distribution, leisure and services, and construction, with a focus on the areas along our railway lines and local communities. In 2031, we plan to open the Naniwasuji Line and directly link it to national core routes in Shin-Osaka and central Osaka. We expect this to sharply lift the value of the areas along our railway lines. This project will require major investment, but it will also have great social significance. By directly connecting the areas along our railway lines with Umeda and Shin-Osaka, we will bring a large influx of people to the areas along our railway lines from the region extending from Osaka to Kobe, and the communities to the north of this stretch, ultimately bringing greater passenger revenue and increasing the population along the railway lines. The Nankai Group's main mission is to enhance convenience and revitalize the areas along our railway lines and local communities by dealing with changes in the environment, thereby continually boosting the value of these areas. My role as CEO is to point out the path for achieving this mission. If I sit back with my arms crossed over fear of change, the company will be left behind as time marches on. I maintain a strong sense of crisis about this point.

Five and a half years have passed since the start of our previous Medium-term Management Plan, the "Kyoso 136 Plan." We launched a full-scale effort to transform the internal mindset in the wake of the COVID-19 pandemic, and it has begun to bear fruit. Our employees' outlooks are in the process of changing due to endeavors at the company such as carrying out serious initiatives for new business, taking an active stance toward mid-career hires, and reforming our human resource systems.

The two keywords for leading the Nankai Group to new growth are change and speed. Accepting change can sometimes bring pain, and we will be considerate to the people who may feel discomfort. However, for the Nankai Group to survive in a new age and keep growing, we must uphold our core tenets of safety and security as well as respect our corporate culture of being sincere and earnest. Meanwhile, the situation calls for shifting our perspectives, daring to instigate change, and moving forward with a sense of speed without being restricted by previous methods or values.

We declared our objective to achieve through new growth as our "Corporate Image in 2050," which we announced in March 2022. The Medium-term Management Plan that we established to realize our corporate image is called the "Kyoso 140 Plan." Carrying out this plan is a concrete goal for us at present, and in order to drive multiple strategies forward to this end, we have transitioned to a new organizational structure in April 2023. Accordingly, I have been

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CEO's Message

Introduction Messages from Management Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation Business Overview and Strategy Management Information

Nankai's "Corporate Image in 2050"

Community coexistence and co-creation, diverse lifestyles

Together with local communities

Under the banner of being community-based, we will continue to treasure connections with people in communities and areas along our railway lines and work together with these people to create diverse communities where diverse groups of people can live in happiness.

Mobility

Mission as a public transportation operator

We will deepen the history and responsibility of safe and secure operations of the transportation business cultivated in areas along our railway lines to evolve into more diverse mobility business that connects "person and person,""community and community," and "people and communities" towards the future.

railway lines also serve Namba, an appealing city area that attracts many people of different nationalities. We seek to develop communities in which all people with diverse nationalities and backgrounds can coexist in peace. We also desire to work in the areas along our railway lines and in local communities to build places that are highly convenient and bring people delight as they live in them- places that people feel to be the most pleasant regions to live within

produced the expected results. The public transportation and real estate businesses continue to serve as our two pillars of revenue. With respect to the transportation business, there is concern that it will be unable to fight against challenges such as the falling population, and ultimately decline if it proceeds with the current business model. As such, there is a need to make act fast to nurture a business that will serve as our third pillar of revenue. Based on this strong sense of crisis,

With our roots within the local communities,

NANKAI with an entrepreneurial spirit is firmly committed

to creating "DiverCity"* in Kansai

Diversity and globalityNankai identity

"Think Globally, Act Locally"	Strong will to open the way to the future on our own
With Kansai International Airport as a gateway to the world (Asia), and Namba as	Throughout the long history since its founding, the Nankai Group has built its
a diverse community, we will foster diversity that respects and enhances diverse	culture and identity and created a new roadmap for the future. Keeping our
values and individuality while staying close to Namba, where diverse people	mission and responsibility as a member of society in mind, we will take on new
from all over the world will continue to gather for the foreseeable future.	challenges, become a business group that carries through on its commitments,
		and open up our own future.
		* DiverCity: "DiverCity" is a term created by combining "Diversity" and "Diverse City (city filled with diversity)" that we seek to realize.

Japan. These aims are encapsulated within the phrase "creating DiverCity."

The phrase "entrepreneurial spirit" is also linked with our Nankai identity, and expresses our determination to boldly take on challenges and achieve commercialization in new areas without being bound by any precedent, to face difficulties head-on and keep striving until we succeed, and to apply strong resolve when establishing new businesses.

"Diversity and globality" are vital keywords for achieving "DiverCity." One significant challenge on the way to realizing our corporate image is to develop the most popular areas and

we decided to make major revisions to the business organization in order to tackle these challenges, and began executing them in April 2023.

There are three key points within these revisions. The first point is "evolving into a comprehensive mobility business." The Nankai Group deals with railways, buses, tramways, and ferries in its transportation business. Rather than taking a perspective of partial optimization for each individual business, we seek to utilize DX (digital transformation) and MaaS* to link these businesses together and achieve optimization across the Group as a whole. To this end, we have established the new Public Transportation Group to integrate operations, and have laid the

appointed as Representative Director and Chairman, CEO, while Nobuyuki Okajima has been appointed as Representative Director and President, COO. Alongside President Okajima in this new structure, I will dedicate myself to management with a focus on change and speed.

Our passion encapsulated within "Corporate Image in 2050"

Each word of our "Corporate Image in 2050" is filled with strong passion.

We will take a step forward together to reach the corporate image that we seek to achieve.

Firstly, I would like to explain my own views on why we will focus on the year 2050 for our timeframe.

Some may think that setting a specific time-based goal is not suitable in terms of sustainable management. However, we decided to establish our "Corporate Image in 2050" with this specific year because it is not so far away in the future as to be completely unpredictable, even within our rapidly changing times. There is certainly a high degree of uncertainty about the future, but I believe we can paint a

picture of our position some 30 years from now with our own strong dedication and willpower. The year 2050 marks a transitory point through which we will pass through to move even further forward in the future.

What is more, the year 2050 serves as the Japanese government's goal for carbon neutrality. We can also expect new graduates who have joined the Nankai Group to be seeing success in central roles within management by this time.

The Nankai Group has established its "Corporate Image in 2050"in the following way: "With our roots within the local communities, NANKAI with an entrepreneurial spirit is firmly committed to creating 'DiverCity'in Kansai."This is a relatively short sentence, but each word is filled with the passion of both the Nankai Group and myself.

The first phrase we focused on is "with our roots within the local communities." The Nankai Group has many initiatives backed by its strong passion toward the areas along its railway lines and local communities. I expect that for almost three decades leading up to 2050, the Nankai Group will achieve growth in a way that ties into its identity by taking action while letting this passion run even deeper. I strongly believe that there are many more things we can achieve at the Nankai Group within the areas along our railway lines and in local communities. The phrase"with our roots within the local communities" expresses our tireless commitment towards development of the areas along our railway lines, as well as the responsibility and sense of duty that the Nankai Group feels about development in these areas and in local communities.

Our social mission is to provide peerless public modes of transportation for the areas along our railway lines and local communities. With this mission as our cornerstone, we will work hard and consistently to further develop our current businesses and diversify our mobility business. We hold a broad view of the term "local communities." First of all, we will focus on bringing vitality to and creating new value in the areas along our railway lines, while also spreading this value across the Kansai region as a whole.

The phrase "creating DiverCity" is an expression of our Nankai identity. The areas along our railway lines include Kansai International Airport, which is a major growth driver because it provides direct links with the world and particularly with other countries in Asia. Our

communities along our railway lines. The advance of an aging society in Japan is resulting in a falling population across the country. In light of this, I expect that competition will grow even more between communities with regard to maintaining and increasing their populations. To survive this competition, the Nankai Group will use its collective strengths and steel itself with determination to make the lines and areas it serves into lines and areas of choice. I believe that our efforts to achieve our corporate image can bring a continual increase to the Nankai Group's corporate value, and can also help to attain a sustainable society.

Over the past few years, Nankai Group management and employees have worked hard while experiencing a sense of helplessness with no end in sight during the COVID-19 pandemic. We suffered a heavy blow in terms of performance, but we will nevertheless view obstacles like this as opportunities as we envision how the Nankai Group will look in the medium term and take a bold step forward together with hope toward this vision. This is another aspect of our passion that is encapsulated within our "Corporate Image in 2050."

Changing our management structure

We will make bold organizational changes with a sense of crisis about future growth.

Under the leadership of our new President Okajima, we will boost the speed and effectiveness of our businesses.

A year and a half has passed since we established our "Corporate Image in 2050" and since the start of the "Kyoso 140 Plan," which is the Medium-term Management Plan we created through a process of backcasting based on our corporate image. Amid the COVID-19 pandemic reaching its conclusion and society returning to normal, we have achieved acceptable performance in FY2022, partly owing to the effects of restructuring our business. On the other hand, I experience a sense of crisis regarding the current status of the Nankai Group in that there is a lack of speed in our internal measures to tackle the many challenges the Group faces, and that these measures have not yet

groundwork for a structure to accelerate our efforts to build a comprehensive mobility business.

The second key point is "integrating our real estate business and community development business." Our Real Estate Division serves the function of managing and operating existing income properties, and our Community Development and Creation Division chiefly works in development projects. We have integrated these two divisions into the Community Development Group and thereby created a structure to carry out community development in a unified manner. In addition to integrating our medium- to long-term efforts for community development in Namba and other areas along our railway lines together with our short- to medium-term efforts in real estate operations, we will also build more physical assets such as offices, shopping centers, and homes, while bolstering our initiatives from a social perspective. As a result, we intend to further boost the value of the areas along our railway lines and maximize income from our real estate business, as well as to accelerate our pace toward evolving and expanding community development.

The third key point is "accelerating efforts to nurture business into a third pillar of revenue." We have restructured our existing corporate divisions into the Corporate Strategy Group, the Financial Strategy Group, and the General Administration & Human Resources Group. In addition, we have placed the Corporate Strategy Group as the single organization for handling future exploration because it is the closest to the members of management. To realize the third pillar as soon as possible, we are expediting decisions on investment of management resources, while also establishing a system to share expertise on how to formulate and review strategies and launch businesses. In this way, we aim to rapidly commercialize and monetize businesses.

To help our new business organization function effectively, we have renewed our business execution system with President Okajima at the helm, and will build a segment management structure while delegating authority and clarifying responsibilities. Through these endeavors, we seek to accelerate the essential activities of management for tackling the Nankai Group's challenges as well as to boost the effectiveness of our measures.

* MaaS: Mobility as a Service

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CEO's Message

Initiatives for sustainable management

We will strive for both "the increase of value as a sustainable company" and "the realization of a sustainable society" through sustainable management.

We will nurture human resources who can take on challenges without fear of failure.

Nankai's sustainable management aims to achieve both "the increase of value as a sustainable company"and "the realization of a sustainable

Introduction Messages from Management Transformation toward Achieving Nankai's "Corporate Image in 2050" Sustainable Management to Support Transformation Business Overview and Strategy Management Information

Shifting to a New Structure

We will drive forward efforts in "segment management" and "delegating authority

and clarifying responsibilities" as we expedite management and improve effectiveness.

Challenges facing the Nankai Group

In FY2022, the first year of the Medium-term Management Plan, we	concern that the transportation business in particular would decline
executed strategic actions to tackle the Nankai Group's key problems.	with the decrease in population, and that our initiatives to develop a
However, these efforts did not bring major results. There were several	third pillar of revenue had not yet borne fruit. In light of this, we built a
reasons for this, including the fact that the transportation and real	new structure in FY2023 midway through the Medium-term
estate businesses were the only major ones earning revenue, the	Management Plan to speed up the way we deal with problems.

society" through collaborative creation and cooperation with a wide range of stakeholders as part of our Sustainability Policy. In line with this policy, our efforts for sustainable management are grounded in initiatives directed at our seven major sustainability themes (materiality). I recognize that bolstering governance is a crucial issue with respect to carrying out sustainable management. In FY2021, we shifted from a company with a Board of Company Auditors to a company with an Audit & Supervisory Committee, and also established

major asset to me. For the Nankai Group to achieve new growth, it is imperative to have human resources who can take on challenges without fear of failure, and who can learn something new even if they do fail. We will nurture human resources like these within the

Building a segment management structure

We will place a related group company under the jurisdiction of each group, and thereby plan and execute a consistent management strategy We will integrate the management of railways, buses, tramways, and ocean freight under the Public Transportation Group, which will accelerate our efforts to build a comprehensive mobility business. We will integrate everything in our real estate and distribution businesses from property

development to management into the Community Development Group, with the aim to speed up initiatives to deepen and expand the real estate business. We will place the Corporate Strategy Group as the single organization in charge of future exploration, and expedite investments of management resources while sharing strategic knowledge with the aim to commercialize and monetize businesses rapidly.

a Sustainability Promotion Committee. Additionally, we established the Risk Management Committee in April 2022 to avoid and further mitigate risks related to group management. Among the 15 Directors on our Board of Directors, a majority of eight are Outside Directors. Three are female directors, making up 20% of the board. Outside Directors serve as the heads of the Nominating Committee and Compensation Committee, which they run with a sense of urgency while also prioritizing diversity.

There has been widespread debate regarding the concept of "human capital" in recent years. I, too, have a long-held belief that human resources are the most important type of management resource. Through my experience in business up to the present day, I have learned much about the significant impact that human resources have on the success of business.

However, in March 2023, the Osaka Labour Bureau filed criminal papers with prosecutors against Nankai regarding suspected violation of laws related to working-hour management. I would like to extend my sincere apologies for causing major confusion and concern among all related parties. All personnel in management take this extremely seriously, and we will take action to ensure that working hours are managed appropriately and prevent incidents like this from happening again. In addition, we are promoting healthy

company, while also continuing to actively hire personnel from outside.

Working to change the Nankai Group

Focusing efforts to drive sustainable management forward as CEO.

We will continue to take on bold challenges through change and speed, while maintaining a sense of gratitude.

The Nankai Group has resolved to transform itself to achieve our "Corporate Image in 2050." To this end, we are altering our business structure, and making significant changes to our business rules. Newly appointed President Okajima will take the helm of the new business structure. Meanwhile, as CEO, I will focus on promoting sustainable management while continuing to lead many initiatives including our plan to nurture the next generation of human resources for management, our work to enhance our employees' mindsets, and our efforts to build out our governance system. I will also focus on managing and supervising all areas of management in general.

Working to delegate authority and clarify responsibilities

Previously, the authority for executing important business tended to be	will build a structure that can swiftly execute concrete measures and help
concentrated between the President, CEO and the Management	to develop the next generation of human resources for management
Committee*. However, going forward, we will delegate authority to the	who can make decisions in line with the changing times. By increasing
head of each group to boost the speed of management decisions. We	the roles and responsibilities of each group and by involving them more
will drive the delegation of authority in both qualitative (concepts and	in the decision-making process, we hope that executives and employees
processes) and quantitative aspects (monetary amounts). In addition, we	alike will have a stronger sense of ownership as they fulfil their own roles.

* Renamed as the Group Top Management Committee in April 1, 2023.

Organization chart

Nankai Electric Railway (Group Head Office)

CEO

Audit &

COO

Supervisory

Committee

Public

Community

Corporate

Financial

General Administration

Transportation

Development

Strategy

Strategy

& Human Resources

Group

Group

Group

Group

Group

CSO

CFO

CAO

Railway

Public

Real Estate

Community

Risk

Internal

Business

Transportation

Business

Development and

Management

Audits

Division

Business Division

Division

Creation Division

Division

Division

communication between workplaces and are redoubling our efforts to foster an open workplace culture in which all workers can carry out tasks easily.

Change happens fast nowadays, and the outlook for the future is unclear. The human resources in our organization are the ones who will make suitable, timely decisions in these circumstances to ensure the continuity of our business. It is essential to pursue both quality and

"Gratitude" is a word that has a special place in my heart. Upon appointment as President eight years ago, I revisited this word and took it to heart to feel gratitude for the fact that we have encountered no accidents and that our safety has continued through the past, present, and future, as well as to feel grateful to the people who help make it so.

We will boldly seize new challenges and grow together with the areas along our railway lines and local communities under the banner

Planning & Management Department

Safety Planning &Management Department

Railway Area Planning and Promotion Department

Railway Business & Train Stock Department

Facilities Department

Transportation Group Business Department

Management & Planning Department

Business Promotion Department

Asset Management Department

Real Estate Management Department

Shopping Center Management Department

Facilities Management Department

Development Department

Semboku Projects Department

Greater Namba Creation Department

Co-Creation Business Department

Management & Planning Department

Corporate Strategy Department

Business Strategy Department

Tourism Strategy Department

e-Sports Business Department

Innovation Promotion Department

Brand Management Department

Sustainability Promotion Department

Finance & Accounting Department

DX Promotion Department

Human Resources Strategy

Department

Human Resources Department

Group Management Department

General Affairs and Public

Relations Department

Secretarial Department

Secretariat of Audit & Supervisory

quantity in terms of human resources. Quality is vital for diverse ideas and driving innovation, while quantity is crucial for supporting a wide range of businesses. We are tackling this difficult issue head-on with even more enthusiasm than before.

In my own case, I have been involved in work outside the railway business for far longer than I have been working within it. I have continually taken on new projects and tasks I have never experienced before, and have learned so much as a result. This has served as a

of change and speed. I hope you will enjoy watching the Nankai Group's future endeavors.

Representative Director

and Chairman, CEO

Major group companies

 CS Inspector Co., Ltd.  Kumano Kanko Kaihatsu Co., Ltd.  Nakanoshima Co., Ltd.  Nanki Kanko Holdings Co., Ltd.  Nankai Vehicles Service Engineering Co., Ltd.  Southern Transport Services Co., Ltd.  Nankai Ferry Co., Ltd.  Southern Airport Traffic Co., Ltd.  Tokushima Bus Co., Ltd.  Kumano Gobo Nankai Bus Co., Ltd.  Kansai Airport Transportation Enterprise Co., Ltd.  Nankai Rinkan Bus Co., Ltd.  Wakayama Bus Co., Ltd.  Nankai Bus Co., Ltd.  Hankai Tramway Co., Ltd.  Semboku Rapid Railway Co., Ltd. (Railway Business)

 Nankai Building Service Co., Ltd.  Suminoe Enterprise Co., Ltd.  Nankai Food System Co., Ltd.  Nankai FD Service Co., Ltd.  Nankai Shoji Co., Ltd.  Panjo Co., Ltd.  Nankai Fudosan Co., Ltd.  Nankai REIT Management Co., Ltd.  Semboku Rapid Railway Co., Ltd. (Logistics Business)

 e Stadium Co., Ltd.  Nankai Travel International Co., INC.  Nankai Express Co., Ltd.

 Nankai Management Service Co., Ltd.  Nankai Tatsumura Construction Co., Ltd.  ADvertising NANKAI Inc.

 Nankai System Solutions Co., Ltd.  Nankai Research & Act Co., Ltd.  Nichiden Shokai Co., Ltd.  Nankai Life Relation Co., Ltd.  Nankai Insurance Service Co., Ltd.  Nankai Golf Management Co., Ltd.  Nankai Grief Support Co., Ltd.  Avic Co., Ltd.

Committee

17

Nankai Group Integrated Report 2023

Nankai Group Integrated Report 2023

18