Corporate Social Responsibility Report 2018
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Corporate Social Responsibility
Report 2018
If you have any questions or comments
about this report, please contact:
Promoting Environmental Policy 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.
Company information by segment is current as of Sunday, July 01, 2018.
Corporate profile Transportation
Business
Corporate Philosophy
With wisdom and dynamism,
forging the way to the future
36 companies
Contributing to the Community Railways, rail track management, buses, ocean freight, cargo transportation, train maintenance
Justifying public trust as an all-round lifestyle provider, and building Real Estate Construction
a better society Business Business
Putting the Customer First
Providing excellent services for the customer, bringing living comfort Shiomibashi
Namba
and cultural enrichment Ebisucho
Tennoji Station
District
Future Challenges Hankai
Meeting the needs of coming generations with bold energy and Tramway
Sakai
creativity
4 companies
Hamadera Nakamozu 5 companies Construction
A Dynamic Workplace Real estate leasing, real estate sales
Ekimae
Creating a workplace brimming with vitality, harnessing the expertise Takashinohama
Sembokukosoku
and personal strengths of every employee line
Distribution
Kansai Airport Izumi Chuo Business
Corporate Outline As of March 31, 2018 Composition ratio of operating revenue by segment Kishiwada
Construction
Company Name: Nankai Electric Railway Co., Ltd.
Business Other
Established: December 27, 1885
Head Office: 2-1-41 Shikitsu-higashi, Naniwa-ku, 16.0％ 0.9％
HOTEL
Osaka, 556-8503, JAPAN
Website: http://www.nankai.co.jp/ Transportation
Paid-in Capital: ¥72,983,654,121 Leisure Services Business Tanagawa Misakikoen Hashimoto
Business
Operating Revenue: ¥99.313 billion (head corporation) 38.6％ 11 companies
¥227.874 billion (consolidated) 15.1％ Kada
Shopping Center management, Business operations inside the Station
No. of Shareholders: 52,529 Concourse
No. of Employees: 2,615 (head corporation)
Wakayamashi Gokurakubashi
9,158 (all group companies) Distribution Business Real Estate Business Koyasan
Managed track: 154.8 km
Rolling Stock: 688
13.6％ 15.8％ Wakayamako
HOTEL
Note: The composition ratio is the ratio of operating revenues
including transactions between segments. Leisure Services Osaka
Business
Editorial Policy Wakayama
Since the 2014 edition, we have been including business overview and nancial information in addition to CSR information.
For CSR information, we refer to GRI standard and provide comprehensive reporting.
Applicable Term: Fiscal 2017 (April 1, 2017 to March 31, 2018). Some information, however, is from outside this period.
Organization covered: Nankai Electric Railway Co., Ltd. The environmental report of Semboku Rapid Railway Co., Ltd. has been
incorporated into this report since fiscal 2016, so we also report on the activities of Semboku Rapid Railway
Line as well as other group companies.
Guidelines referenced: Environmental Reporting Guidelines, 2012 Edition by the Ministry of the Environment, Environmental
Accounting Guidelines for Private Railway Businesses 2008 by the Association of Japanese Private Railways, 22 companies
and the GRI Standards. Amusement Park management, travel agency, hotels and ryokan
Japanese inns, Leasing of facilities for motorboat racing, building
management and maintenance businesses, printing, advertising agency
Contents
..................................... 1
Corporate profile KYOSO 136 Plan - Medium Term Business Plan ... 14 ■ Governance ................................. 33
Financial and nonfinancial highlights ........... 3 CSR overview ................................................ 17 ............................... 38
Financial report
Message from the president ...................... 5 ■ Safety ....................................................... 17 Company profile ............................. 43
Nankai Group Business Vision 2027 ........... 11 ■ The Environment .......................................... 21
Advancement of the Naniwasuji Line plan ... 13 ■ Society ...................................................... 29
1 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 2
Financial and nonfinancial highlights
Financial and nonfinancial
highlights
Message from the president
Operating revenue*1 Ordinary income Profit attributable to owners of Number of passengers Railway Revenue Number of employees
¥227,874 mil. ¥29,733 mil. parent
¥14,719 mil. (Thousands of people)
238 mil. ¥57,953 mil. (Individuals)
9,158 (Consolidated)
(¥ millions） (¥ millions） (¥ millions） (¥ millions）
29,733
236,153 238,479 57,187 57,953
300,000 30,000 20,000 240,000 60,000 10,000
27,110 27,111 17,467 233,301 53,532 53,473 55,911 8,808 8,853 9,104 9,158
16,452 228,862 227,031 8,319
227,874 14,719
210,995 219,065 221,690 22,001 15,000 7,500
200,000 197,495 20,000 12,612 220,000 40,000
Nankai Group Business
16,899
10,000 9,615 5,000
Vision
100,000 10,000 200,000 20,000
5,000 2,500 2,588 2,577 2,567 2,577 2,615
0 0 0 0 0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
(Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year)
Consolidated Nankai Electric Railway only
Medium Term Business Plan
Number of female employees Investments for safety Number of “Customer’s Voice”
Net assets Total assets Dividend per share*2 cases
¥232,835 mil. ¥903,857 mil. ¥30 115 9.2 billion 2,719
(Nankai Electric Railway only)
(¥ millions） (¥ millions） (Yen） (Individuals) （％） (¥ millions） (Number of cases)
300,000 1,000,000 40 120 115 12 12,000 3,000
909,547 894,621 890,798 903,857 104 105 109 2,719
2,563
232,835 781,671 30 30 30 30 95 9,216 2,327
219,288 750,000 30 9,000
200,000 199,991 203,939 25 80 8 7,942 2,000
6,797 6,865 1,766
152,039 500,000 20 6,000 6,091 1,467
4.04 4.09 4.23 4.40
CSR overview
100,000 40 3.67 4 1,000
250,000 10 3,000
0 0 0 0 0 0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
(Fiscal Year) (Fiscal Year) (Fiscal Year) Number of female employees (Fiscal Year) (Fiscal Year) (Fiscal Year)
Ratio of female employees
(number of female employees/number of all employees)
CO2 emissions Rolling stock energy consumption
Return on equity (ROE) Return on assets (ROA) Interest-bearing debt/ (Nankai Electric Railway only)
rate*4
6.8% 1.6% EBITDA* ratio
7.69 170,258 t-CO 6.05 kl/10,000 km
3
Financial report
2
（％） （％） (t-CO 2) (t-CO 2 / ¥ millions) (kl/10,000 km)
10.3 2.1
10.0 2.0 12.0 300,000 2.10 7.00
1.8 1.94 1.91 1.88
10.38 1.79
8.1 1.6 9.60 1.71 6.44
1.4 6.33
7.5 6.6 6.5 6.8 1.5 9.0 8.37 8.26 6.12 6.12
1.2 7.69 200,000 1.40 6.00 6.05
176,142 175,756 177,806 171,266 170,258
5.0 1.0 6.0
100,000 0.70 5.00
Company profile
2.5 0.5 3.0
0 0 0 0 0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
(Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year) (Fiscal Year)
CO 2 emissions
CO 2 emissions rate (CO 2 emissions/operating revenue
*1 Operating revenue does not include consumption tax, for example. (Nankai Electric Railway only)) *4 Energy used by railway business (kl)/total operating
*2 Values reflect adjustments for reverse stock split made October 1, 2017. distance of all railroad cars (10,000 km)
*3 EBITDA (earnings before interest, taxes, depreciation and amortization) = Operating Income + Depreciation and Amortization
3 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 4
Message from the president
Based on how the corporation should be in 10
Financial and nonfinancial
years as expressed in our Nankai Group Business ■ Overview of business results and main efforts in
highlights
In our leisure and services business, we sought to attract a wide
fiscal 2017 range of customer types by, for example, holding hands-on events
Vision 2027, we will pursue advancement toward At our group, we continued to advance various measures
at Misaki Park, which is approaching the 60th anniversary of its
opening, and collaborative events with the Kemono Friends Project.
during this period (fiscal 2017) to successfully conclude our Moreover, we also participated for the first time in
offering train lines that are chosen and being a SHINTEN 133 Plan in the last year of this medium term agriculture-related events and established “lifestyle vegetable
Message from the president
business plan. As a result, our operating revenue for the period gardens” as hands-on farm plots in Izumisano and Kawachinagano
corporate group that is chosen. increased to 227.874 billion yen (2.8% increase over the
previous fiscal period). For income, our operating income was
cities in Osaka Prefecture. For our entire leisure and services
business, which includes these, our operating revenue was 39.362
33.971 billion yen (6.7% increase over the previous period) and billion yen (0.5% increase over the previous fiscal period) and our
our ordinary income was 29.733 billion yen (9.7% increase). In operating income was 1.847 billion yen (0.1% increase).
contrast, since decreases and losses in noncurrent assets for In our construction business, we focused on efforts to receive
business uses were calculated as extraordinary losses, for orders in the private residential and nonresidential construction
example, the profit attributable to owners of the parent markets and for civil engineering projects in the capital region, for
company declined to 14.719 billion (10.5% decrease from the example. However, labor costs increased due to insufficient skilled
Nankai Group Business
previous period). construction workers while construction material prices also rose.
Typhoon 21, which hit the Kinki region in October 2017, As a result, our operating revenue was 41.849 billion yen (7.6%
Vision
impacted our railway business, which is the core of our decrease from the previous fiscal period) and our operating income
transportation business. Railway line damage occurred on the was 2.337 billion yen (20.9% decrease).
outbound Nankai Line at the Onosatogawa Bridge and within
■
the Kamikosawa Station on the Koya Line, making some
sections impassable. The Nankai Line was repaired and both Review of “SHINTEN 133 Plan,” our medium
inbound and outbound lines began operating on their normal term management plan
Medium Term Business Plan
schedules from November 23, 2017. The Koya Line, which
required some time to be repaired, reopened on March 31, Our corporate group has pursued the SHINTEN 133 Plan, which is
2018. In terms of operations, we increased convenience for our medium-term business plan, for three fiscal years from 2015 to
overseas travelers and worked to attract them. 2017. This plan had three fundamental policies (most important
Despite the impact of service suspensions and other factors, issues): strengthen Semboku-related business, expand Kansai
the operating revenue for our entire transportation business International Airport and inbound tourism business, and increase
increased to 100.889 billion yen (1.3% increase over the the drawing power of the Namba area.
previous fiscal period). On the other hand, due to increased To strengthen Semboku-related business before the previous fiscal
depreciation and amortization as a result of constructing new year, we began operation of the Semboku Liner 12000 series
CSR overview
rolling stock, operating income decreased to 15.004 billion yen express train (December 2015), completely renewed the
(7.0% decrease from the previous fiscal period). Izumigaoka HIROBA Shops & Restaurants shopping center at
In the real estate industry, we acquired a rental apartment Izumigaoka Station (reopened in April 2016), and undertook
building near the Sakai Higashi Station on the Koya Line. We large-scale renewal of Panjo (reopened in March 2017), for
also attracted lodging facilities that support the needs of example. We also completed a new truck terminal management
inbound travelers, which are increasing in number. Moreover, building at the Kitaosaka Distribution Center administered by the
our condominium sales business trended favorably. As a result, Semboku Rapid Railway Co., Ltd., and we advanced our
our operating revenue for real estate was 41.248 billion yen implementation plan for a multifunction logistics facility.
Financial report
(21.6% increase over the previous period) and operating income In fiscal 2017, by revising the timetables for the Koya Line and
was 11.347 billion yen (32.2% increase). Semboku Rapid Railway Line, we increased the number of through
President and CEO We endeavored to maintain and improve the attractiveness of trains that operate on both lines. We sought to expand our
our retail businesses by replacing shops and holding various transportation share and increase profitability by enhancing
Teruhiko Achikita events to attract customers, for example, at Namba Parks, convenience.
Namba City and other facilities. We also began the “minapita For our second goal, which was to expand our Kansai International
point” service to further promote usage. Our operating revenue Airport and inbound tourism business, we reinforced our
was 35.608 billion yen (0.5% decrease from the previous transportation capabilities by revising timetables (January 2017)
Company profile
period) but our operating income was 4.011 billion yen (26.1% before the previous fiscal year, coinciding with the opening of
increase from the previous period). Kansai International Airport Terminal 2 (international flights). We also
implemented measures that included increasing early-morning and
late-night departures to meet the needs of travelers utilizing
low-cost carrier airlines and having airport limousine buses on all
lines enter this terminal.
5 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 6
■
Financial and nonfinancial
clear these higher goals. Overview of the “KYOSO 136 Plan,” our medium ■ Develop the Namba community
highlights
Of these business indices, we were able to improve our term management plan For the next 10 years, we will seek to create a “Greater Namba”
interest-bearing debt balance/EBITDA ratio from 9 to 7 despite that combines tourism and urban functions to surpass Namba
continuing investment in Namba SkyO because were able to For the purpose of realizing the Nankai Group Business Vision as it has been until now. Along with opening Namba SkyO in
stably record a level of operating income of over 30 billion yen 2027, we designated the three years starting fiscal 2018 as the October 2018, we have been working to acquire new
for these three years. “foundation preparation period,” the first stage in “making properties, receive contracts for our property management
business and renovate properties that we already own, for
■
opening moves for future growth.” We established the KYOSO
Message from the president
136 Plan as our medium term management plan for the same example, in order to enhance the zone around the Nankai
Establishment of the Nankai Group Business period, and we have been implementing measures in every area Terminal, which is centered on Namba Station.
Vision 2027 in accordance with this plan in fiscal 2018. Moreover, in order to form a north-south axis between Namba
The five fundamental policies (important issues) of the KYOSO and Shin-Imamiya/Shinsekai, we are advancing the
With the further decline of population along our train lines, the 136 Plan are: provide high-quality transportation services that development of the surrounding area with the NAMBA Ekikan
advancement of IT, and other factors, we expect that the are safe and reliable, develop the Namba community, increase Project as the core and the development of facilities to support
business environment that affects our group will change even nonresident population starting with inbound travelers, develop exchange with and employment of foreigners.
more rapidly in the future. Rather than just responding to communities with stations as core locations, and expand the
short-term issues right in front of us, we have established “an ■ Increase nonresident population, starting with inbound
Nankai Group Business
real estate business.
ideal form” for the long-term. To realize this, we must travelers
For details, see “‘KYOSO 136 Plan’ ― Medium Term Management Plan”
unwaveringly pursue a variety of measures. Based on this idea on p. 14. In preparation for the 2020 Tokyo Olympics and Paralympics,
Vision
for our corporate group, we newly established the Nankai we will seek to steadily capture inbound demand, which is
Group Business Vision 2027 in February 2018 as a long-term ■ Provide high-quality transportation services that are safe expected to increase even more. We will, for example, sell
vision for sustainable growth. and reliable special discount train tickets to travelers before they come to
In this vision, we define “our ideal form 10 years from now” as Taking to heart that the foundation of a public transportation Japan and enhance the selection of attractive tourism options.
We also implemented a variety of measures in fiscal 2017, “having our train lines and corporate group be chosen because business is to provide safe and reliable transportation services, Furthermore, if the Mozu-Furuichi Kofungun burial mounds
Medium Term Business Plan
including unveiling a multilingual website, establishing we provide satisfaction and inspiration.” In addition, we position even more than before we will steadily improve the safety of become registered as a World Heritage site in 2019, the Koya
partnerships with Taiwanese and Swiss rail companies, the next 10 years as “a decade of enhancing our train lines in facilities and train operation security as well as undertake efforts Line will become a train line that accesses two World Heritage
introducing articulated buses between Kansai International preparation for the opening of the Naniwasuji Line (Spring 2031 related to safety, including for platforms and crossings. sites. In order to make the most of this business chance, we will
Airport Terminal 1 and Terminal 2, and attracting the Bon Hostel target).” Moreover, we will continue undertaking various measures to seek to maximize the nonresident population by promoting
guest house and the Hatago Inn Kansai Airport hotel. Toward the realization of this vision, we will continue to provide “train lines that are chosen.” As a part of these efforts, tourism that emphasizes the unique characteristics of every
The foundation of our businesses is the Namba area. For this undertake a variety of measures under the two business we will build a total of 72 new replacement train cars for the place along our train lines.
reason, to “increase the drawing power of the Namba area” strategies of “creating train lines that are chosen” and Koya Line 6000 series over the next six years. In addition, we
before the previous fiscal year, we undertook measures that “deepening and expanding real estate business.” Moreover, to have also begun a new Station Toilet Renewal Project in which
included large-scale renovation of the Namba City South underpin our business strategies, we will undertake thorough we will renovate 40 restrooms at 36 stations in the coming
Building (April 2016) and the opening of the third phase area of business selection as well as proactive IT utilization. In addition, three-year period.
CSR overview
the NAMBA Ekikan Project, which is a development plan we will advance personnel strategy and financial strategy as we
beneath the tracks of the station (April 2016). In fiscal 2017, keep working to augment group business foundations.
along with opening the fourth phase area of the NAMBA Ekikan Approach to the Nankai Group Business Vision 2027
For details, see “Nankai Group Business Vision 2027” on p. 11.
Project, we continued to maintain and improve the novelty and
attractiveness of various facilities, including Namba Parks and
Namba City. Nankai Group Have our train lines and corporate group be chosen
Furthermore, we opened Namba SkyO, which we had been
building on land adjacent to the Namba Station since
Business Vision 2027 because we provide satisfaction and inspiration
Financial report
September 2015, in October 2018. Great interest is being paid
to this new landmark tower for the Namba area. With 31 floors A decade of enhancing our train lines in preparation for the opening of the Naniwasuji Line
above ground and 2 underground, features of this building ● With neighborhoods along our train lines as main business areas, apply all the abilities of our group to focus on
include business center functions that support the highest level increasing value along these lines
of business continuity planning (BCP). Furthermore, the decision ● By using Namba and inbound tourism as business chances, accelerate increasing value along our train lines
● By proactively using alliances, raise the speed of business development
has been made to establish a large-scale clinic that supports
pioneering and preventative medicine and a “healthy lab”
focused on the concept of “health.”
Company profile
We achieved the original quantitative targets of the SHINTEN
133 Plan (operating income and interest-bearing debt Phase3
Phase1 Phase2
balance/EBITDA ratio) in the first fiscal year (2015) thanks to the Medium Term Business Plan
Medium Term Business Plan
steadily growing Japanese economy and the beneficial external KYOSO 136 Plan
environment with growing inbound travel. We revised our target
Fiscal 2018–2020
values upward for this reason, and we were ultimately able to
7 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 8
Financial and nonfinancial
■
highlights
■ Develop communities with stations as core locations Promoting corporate social responsibility based
By renovating stations in ways that are suitable to local on group business guidelines
characteristics and enhancing their functions, we will seek to
revitalize the communities along our train lines and increase The corporate social responsibility (CSR) mindset is
their appeals. As one example of this, in addition to advancing a indispensable for a business to continue realizing sustainable
Wakayamashi Station Revitalization Plan in cooperation with
Message from the president
development and growth while coexisting with society. Based
Wakayama City and Wakayama Prefecture, we will continue to on this thinking, we have set “assurance of safety and peace of
deepen cooperation with local governments and related mind,” “emphasis on the environment,” “compliance
locations and work to restore and revitalize new towns along thoroughness” and “pursuit of a customer orientation” as four
our train lines, starting with Semboku. business guidelines for our corporate group. In addition, we are
strengthening our promotion systems and proactively advancing
■ Expand real estate business efforts through our Safety Planning & Management Department
First, we will advance the first phase plan for redevelopment of and our CSR Promotion Division, new organizations established
the North Osaka Distribution Center (scheduled to open for in June 2017.
Nankai Group Business
business in spring 2020) as well as solidify plans from the
second phase onward. Moreover, along with acquiring new real ■ Assurance of safety and peace of mind
Vision
estate properties and developing and renovating income For our corporate group, which has railway business at its core,
properties, we will advance a variety of other real estate assurance of safety and peace of mind can be said to be our
businesses, including entering fee-based businesses. By further most important corporate social responsibility. In each
expanding our real estate businesses, we will continue to department of our Railway Business Division, we are
develop paths for future growth. systematically implementing separate education and instruction
Medium Term Business Plan
for new employees, core employees and skilled employees to
Furthermore, we have set our numerical targets for fiscal 2020, enable them to improve their skills and abilities.
which is the last year of the KYOSO 136 Plan, as 37 billion yen In fiscal 2017, we continued to conduct various trainings related
in operating income (including received dividends) and an to rescuing injured people and guiding evacuations in
Interest-Bearing Debt/EBITDA ratio of 7.5 or less. cooperation with railway businesses, local governments and
We anticipate 232.2 billion yen (an increase of 1.9% over the other outside organizations as we endeavored to raise safety ■ Compliance thoroughness efforts included the incorporation of multilingual train
previous period) in operating revenue for fiscal 2018, the first awareness. Furthermore, safety investments of about 9.2 billion Our corporate group seeks to be an enterprise that fulfills the broadcast systems and updating automatic guidance
year of the plan. Among contributing factors, we anticipate yen were made to enhance and improve various facilities. These trust that it receives from society. In order for us to thoroughly broadcast equipment and train destination guidance
transportation income to grow along with the increase in the included the expansion of safety measures related to train implement compliance practices, we have created a Code of equipment in stations. Moreover, we worked to further
number of Kansai International Airport users in our operation, rolling stock and train platforms, for example, the Business Ethics and established a Compliance Committee as increase convenience for customers in our bus businesses
transportation business. Moreover, in our construction business,
CSR overview
installation of platform doors at Namba Station in February a dedicated organization responsible for the promotion of through a variety of measures. For example, we installed bus
we expect the value of completed construction to increase. In 2018, as well as the reinforcement of station buildings for internal auditing and compliance management. location systems on the operation lines of Nankai Bus Co.,
terms of income, because of reduced income due to declining earthquake resistance in preparation for major earthquakes and This committee deliberates various measures for the Ltd. and Tokushima Bus Co., Ltd. We also started the “Kansai
condominium sales in our real estate business, increased other disasters. We will continue to endeavor to improve strengthening of compliance management. In addition, should Wakayama route search” service that enables unified
personal costs and depreciation expenses in our transportation transportation safety and reliability as we further cultivate a a serious compliance violation occur, it has arranged systems searching of multiple transportation routes, including buses,
business, and other factors, we estimate that operating income culture of safety. to respond by making proposals about corrections and trains and walking for Wakayama Bus Inc.
will be 32 billion yen (5.8% decrease from the previous fiscal recurrence prevention measures.
period), and ordinary income will be 27.6 billion yen (7.2% ■ Emphasis on the environment Furthermore, strengthening corporate governance functions is In a business environment that continues to change at a
Financial report
decrease). Profit attributable to owners of the parent company As medium-term environmental goals, we sought to reduce an important business issue in order to continue achieving bewildering pace, in our corporate group, we will continue
will be 20.7 billion yen(40.6% decrease) due to extraordinary “CO2 emissions for 45 group companies” and “water use,” for healthy development for the corporate group into the future. endeavoring to build and maintain safe, secure and durable
income reforms and other factors. example, and advanced efforts toward specific numerical As we continue to persistently strengthen functions and transportation networks, starting with disaster
targets that we had established for the three years of fiscal conduct examinations, we should seek to adhere strictly to countermeasures. In addition, as a unified group we will keep
2015–2017. We achieved reduction rates of 3.6% for CO2 laws and regulations first of all, strive to practice even more working to attract and foster diverse personnel and build
emissions and 7.9% for water use, so our results exceeded our transparent management, grow sustainably and increase organizations capable of creating added value in a new era as
targets. corporate value over the medium and long terms. we seek sustainable growth and increased corporate value
Moreover, we established the Nankai Environmental Vision 2030 over the medium and long terms.
■ Pursuit of a “customer orientation”
Company profile
in September 2017 with goals that exceed our medium-term I humbly request that you, our stakeholders, give us even
environmental goals. This indicates the directions in which we For our group, which provides a variety of services centered more of your understanding and support in the future.
seek to advance by 2030 for the environmental issues of on railways, it goes without saying that “pursuit of a customer
“suppressing global warming,” “realizing a recycling-oriented orientation” is an important management issue. With the goal
September 2018
society,” “preserving biodiversity” and “deepening environmental of further increasing customer satisfaction, we worked to
management.” improve services for travelers from Japan and abroad. Our President and CEO Teruhiko Achikita
9 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 10
Nankai Group Business Vision 2027
Namba, which is the most important business base for our population decline and the advancement of IT, in the future. Executive message
Financial and nonfinancial
group, has grown as one of Japan’s leading international tourist For these reasons, we have established the Nankai Group
destinations, and our company has benefited directly from Business Vision 2027, as an ideal form for our corporate group
increased inbound tourism. As a result, we were able to achieve 10 years from now that is oriented toward sustainable growth,
highlights
great growth in our previous Medium Term Business Plan. rather than only responding to the issues immediately before us.
Moreover, through the opening of the Naniwasuji Line (spring In this vision, we establish the 10 years until 2027 as “a decade We will emphasize growth and speed and,
2031 target), the convenience of our train lines is expected to of enhancing our train lines in preparation for the opening of the focusing on 10 years from now, seek to realize
increase significantly. Naniwasuji Line.” We will undertake a variety of measures “train lines that are chosen” with an
On the other hand, we can predict that our group will face toward this goal without losing focus.
even more extreme environmental changes, including continued aggressive stance
Message from the president
Managing Director
Naoto Ashibe
Ideal form
Have our train lines and corporate group be chosen The creation of a “Greater Namba,” improving value The second is “emphasizing growth” with proactive
along train lines and functionality enhancement of logistic investment focused on railways and Namba. In the past,
because we provide satisfaction and inspiration facilities are all examples of efforts that must be thought we emphasized the reduction of interest-bearing debt. In
about over long spans. the future, however, for cash flow, we will prioritize
As a policy to set an “ideal form” for the long term allocation to investing in growth. Through growth, we will
Numerical targets (consolidated basis) Business strategy
Nankai Group Business
and work towards its achievement with a sense of speed keep improving financial conditions as a result of
Operating income1 45 billion yen 1. Create train lines that are
rather than becoming too focused on immediate issues,
we established the Nankai Group Business Vision 2027.
increasing generated operating income and EBITDA.
The third is “emphasizing speed through alliances.”
Vision
This vision has three key points. The first is that in With the completion of Namba SkyO, one phase of the
Interest-bearing debt balance/EBITDA 2
chosen preparation for the opening of the Naniwasuji Line in redevelopment of Namba Terminal will be concluded. As
ratio (multiple of about 6) Reverse population movement from net loss to net 2031, we have clarified that our efforts to “create train
lines that are chosen” will be aggressive rather than
the business environment changes turbulently, rather
than fixating on self-sufficiency, what is important is that
1 Including dividend income gain in 10 years
2 Operating income + dividend income + depreciation and amortization defensive. The key to realizing this is to maximize our company acts as a catalyst for and fulfills a key role
• Provide high quality transportation services that are familiar
Medium Term Business Plan
utilization of “inbound tourism” and “Namba,” areas in in community revitalization while emphasizing speed and
Develop the Namba community, which is the entry point for
450 billion yen
•
7.6 our train lines which we are strong, creating a flow by first increasing cooperating with local landowners and other businesses.
the population of visitors with tourism interests, and in Even in “creating train lines that are chosen,” we think
→Pick Up！ Create “Greater Namba”
34.7 billion yen • Mobilize all our resources for measures to revitalize
turn invigorating local economies, increasing cooperation with communities, governments and other
communities along our train lines employment and fostering a sense of familiarity. With the companies will become even more important than
About major prerequisite of ultimately building appeal as before.
Community development focused on
6 →Pick Up！ improving value along our train lines residential areas, we will continue undertaking As a milestone for these strategies, we established
community development centered on railways and the KYOSO 136 Plan as our medium-term management
stations and working to enhance communities along our plan. By implementing PDCA cycles for planning, we will
Synergy
train lines by, for example, increasing convenience for continue seeking to accelerate business toward the
Fiscal 2017 Fiscal 2027 daily life and attracting schools and businesses. realization of our ideal form.
2. Broaden and deepen our
CSR overview
(target)
In the Nankai Group Business Vision 2027, we present a growth real estate business
strategy that proactively utilizes joint investment and other Cultivate our real estate business as a pillar equivalent →Pick Up! Approaches to “creating train lines that are chosen”
alliances in order to accelerate business advancement. For this to railways (make into a majority of operating income)
reason, the values calculated for “operating income” and
• Increase income properties and advance toward flow business
Create “Greater Namba” Community development focused on
“interest-bearing debt balance/EBITDA ratio” numerical targets
• Complete functionality enhancement of logistics facilities improving value along our train lines
include dividends received.
Value along train lines
Kuromon Market and
Financial report
Nippombashi area Value as place Value as place
“to visit” “to live”
Namba
Terminal Merits
Formation of a north-south Tourism promotion Employment opportunities,
axis between Namba and convenient transportation for
Dotonbori Shin-Imamiya/Shinsekai
Shin-Imamiya commuting to work and school,
extensive facilities for daily living, etc.
Canal area and Shinsekai
area Trendiness, Image
accessibility, etc. Sense of familiarity with areas
Minatomachi area Flow of people
along train lines, etc.
• With
Company profile
inbound tourism and Namba SkyO as triggers, Increase Increase
cultivate the area with the two vectors of “visitor population” “resident population”
“development as an international tourism city” and
“enhancement of urban functions”
• Increase the “visitor population” by raising the value
• With formation of a north-south axis between Namba
and Shin-Imamiya/Shinsekai as the key, create a
as a place “to visit,” and contribute to increased
“resident population” by raising the value as a place
vibrant excursion space and develop the region into “to live”
“an area of greater excitement”
11 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 12
Advancement of the Naniwasuji Line plan KYOSO 136 Plan— Medium Term Management Plan
In preparation for commercial opening in the spring of 2031, we are steadily carrying We established the KYOSO 136 Plan as our new medium term
management plan to make opening moves for future growth, and
The “KYOSO 136 Plan” name, which includes the characters
for “create” and “together,” reflects our belief in realizing growth
Financial and nonfinancial
out consultations with the Ministry of Land, Infrastructure, Transport and Tourism we positioned the three years of fiscal 2018–2020 as the and creating new value in the future together with every
and other concerned agencies as we advance the design of necessary facilities. “foundation preparation period” for the achievement of the Nankai stakeholder and person or organization that has a relationship with
highlights
Group Business Vision 2027. our corporate group instead of being fixated on self-sufficiency.
At our company, we position the Naniwasuji Line as a part of Tokaido Shinkansen
Positioning
bullet train
the railway network necessary for the growth of Osaka and Hankyu Hankyu Shin- Hankyu
Kobe Line Takarazuka Line Osaka
the Kansai region. In cooperation with Osaka Prefecture, Kyoto Line
Nankai Group Have our train lines and corporate group be chosen
Osaka City and JR West, we are advancing discussions Yodogawa
Business Vision 2027
Message from the president
based on the following plan with the national government and Sanyo Shinkansen because we provide satisfaction and inspiration
bullet train
seeking to begin commercial operation as soon as possible.
In March 2018, we announced with JR West that our two
Juso
companies would provide the 33 billion yen in private
investment necessary for the Kansai Rapid Railway Co., Ltd.,
which will be responsible for development of the Naniwasuji Phase3
Naniwasuji Phase2
Line (18.5 billion yen from Nankai Electric Railway and 14.5 Phase1
connecting line Medium Term
billion yen from JR West). investigation and Medium Term
examination JR Osaka Loop Line SHINTEN 133 Plan KYOSO 136 Plan Business Plan
Main effects expected from development of the
Business Plan
Fiscal 2015–2017 Fiscal 2018–2020
Nankai Group Business
Kita-
Naniwasuji Line Umeda
JR-Nankai joint operation section
• Enhance access to the Kansai International Airport
JR Tozai Line
Vision
• Direct connection of Shin-Osaka, which is along a national core route,
and Central Osaka with southern Osaka and other areas. First three years toward the achievement of the Nankai Group Business Vision 2027: Foundation preparation period
• Induce interaction among tourist destinations over a wide area Hanshin Main Line
• Increase functionality as a core of the Kita Umeda area and promote Nakanoshima Keihan
Make concentrated early investments as a key to future growth: Three years of making opening moves for future growth
community development in the Nakanoshima area Nakanoshima Line
• Improve accessibility of the Namba area Realize growth and create new value in the future together with stakeholders: Three years of creating together
Plan overview
Medium Term Business Plan
Improvement extent Subway Chuo Line Capital investment
Nishi- Fundamental policy Numerical targets (consolidated basis)
Nankai Shin-Imamiya Station – Nishi Hommachi Station (working Hanshin Hommachi amounts (planned)
name) – Kita Umeda Station (working name) Namba Line (in ¥100 million units)
JR operation section
Operating income1
1 Provide high-quality
JR Namba Station – Nishi Hommachi Station (working name) –
Kita Umeda Station (working name) Increase revenue 773
Stations en route transportation services that are Fiscal 2017 Fiscal 2027 (target)
Nankai operation section
Developing the Namba community 196
Nakanoshima Station (working name), Nishi Hommachi Station Kintetsu safe and reliable
(working name), Nankai Shin-Namba Station (working name)
Nara Line and
Osaka Line 34.7 billion yen 37 billion yen Inbound travel 42
Total project expense
About 330 billion yen in estimated expenses JR Osaka Loop Line
JR
Namba
Nankai
Shin-Namba 2 Develop the Namba community Developing communities with
stations as core locations 46
Project implementation Interest-bearing debt balance/
Kansai Rapid Railway Co., Ltd. 3 Increase nonresident population, EBITDA 2 ratio
Expanding real estate business, etc. 400
Operators and operation sections starting with inbound travelers Other revenue growth investment 82
Nankai Electric Railway Co., Ltd. Fiscal 2017 Fiscal 2027 (target)
CSR overview
JR Kansai Nankai Line
4 Develop communities with
Operation section: Nankai Shin-Imamiya Station – Kita Umeda Main Line
Station (working name)
West Japan Railway Company Shin-
stations as core locations 7.6 7.5 or less Safety and updating 763
Imamiya Railway-related construction
Operation section: JR Namba Station Kita Umeda Station (working (including new rolling stock) 390
name)
Target opening date
To Kansai Airport 5 Expand real estate business 1 Including dividend income
2 Operating income + dividend income + depreciation Real estate and logistics facility
205
and amortization construction
End of fiscal 2030 (spring 2031)
Executive message Executive message
Financial report
We are seeking to begin construction early on the Naniwasuji Line, We will steadily continue realizing these plans, linking them to
a most important project achieving our 10 year vision
In the Nankai Group Business Vision 2027, the which are on a national core route. Moreover, a The business environment surrounding our will contribute to achievement of our ten-year
Naniwasuji Line Plan is positioned as one of our connecting line that links the Hankyu Railway Juso company is expected to change greatly in the vision.
most important projects. In preparation for Station area is considered favorable in terms of future. Utilizing PDCA cycles at a high level is
opening in the spring of 2031, as we seek to start investment efficiency and profitability even in In the midst of this, we must not become important in order to steadily implement the five
construction early, we are currently advancing national investigations and has the possibility of solely focused on responding to immediate fundamental policies of the KYOSO 136 Plan
environmental assessments, urban planning further increasing the development effectiveness of issues. Instead we should work unwaveringly and achieve results. In the KYOSO 136
Company profile
decisions, acquisition of railway business the Naniwasuji Line. So, the idea is to continue on a variety of measures for sustainable Planning & Management Division, along with
permissions and other tasks in cooperation with working toward the realization of this. Furthermore, growth. The policy that we have established establishing our own strategies for inbound
the Kansai Rapid Railway Co., Ltd., Osaka since the synergy between this and Namba SkyO, for this purpose is the Nankai Group Business tourism and IT, which are themes shared
Prefecture, Osaka City and JR West. Namba EKIKAN and other development projects Vision 2027, which is the ideal form of our across the entire group, we want to follow up
Along with strengthening airport access, the should be maximized, we will continue to deepen corporate group 10 years from now. The appropriately on the autonomous
Naniwasuji Line will contribute greatly to cooperation both inside and outside our KYOSO 136 Plan expresses the efforts to be implementations of these PDCA cycles by each
increasing the value of the land along train lines by companies and contribute to further increasing the Director undertaken in the first three years. As the division, and exceed our objectives. Directorr
connecting them with Shin-Osaka and Umeda, attractiveness of Namba as a destination. Satoshi Kajitani opening moves for future growth, these efforts Hiroyuki Sumita
13 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 14
KYOSO 136 Plan — Medium Term Management Plan
Fundamental policy 1 Provide Safe, Reliable and High-quality Transportation Services
Investments for
safety and updating 39 billion yen Fundamental policy 3 Increase the Number of Visitors to the Region, Beginning with Inbound Passengers
Related
investments 4.2 billion yen
Financial and nonfinancial
Improve transportation safety and reliability as Implement measures to provide Capture even more inbound Create locations that are worth visiting
highlights
we further cultivate a culture of safety “train lines that are chosen” demand at many places along train lines
● Reinforce structures in preparation ● Update all Koya Line 6000 ● Enable e-tickets and QR codes for special ● Kada Fish Line Project
for natural disasters (including series trains (72 cars) over the tickets, enhance Wi-Fi, etc. ● Identify subjects for tourism in agriculture, fishing
earthquakes and flooding) next six years by fiscal 2023 ● Enhance electronic payment functions at and related industries, and attract visitors by
● Incorporate emergency ● Renovate 40 restrooms at 36 Namba City, Namba Parks and other retail transmitting information
stopping systems stations facilities ● Promote tourism utilizing the features of various
● Advance installation of moving ● Create tourism demand utilizing the two locations along train lines
Message from the president
platform barriers and railroad World Heritages of Mount Koya and the
crossing obstacle detection Mozu-Furuichi Kofungun burial mounds*
Moving platform barrier image 8300 series train car * Being recommended to UNESCO with registration
equipment sought in 2019 Medetai Train on the Kada Fish Line
Fundamental policy 2 Drive the Urban Development of Namba Related investments 19.6 billion yen Fundamental policy 4 Drive Urban Development Centered on Train Stations
Related
investments 4.6 billion yen
Increase appeals of areas along Restore and revitalize new towns along
Enhance zone around the Nankai Nagahori Formation of a north-south axis
Yotsubashi Tsurumi-ryokuchi Line
train lines by renovating stations train lines, starting with Semboku
Terminal Building Station Shinsaibashi N between Namba and
● ●
Yotsubashi
Station
Shin-Imamiya/Shinsekai Strengthen urban functions through mixed Undertake Izumigaoka Station area revitalization
Sakaisuji
Nagahoribashi
Line
Midosuji
Nankai Group Business
Line
Dotonbori Station
development project focused on relocation of Kindai University
Line
Area
● Utilize areas under elevated station tracks Faculty of Medicine and University Hospital
Namba Osaka Namba that are unified with surrounding ● Propose replacement residences according to
Vision
Station Station
Namba
Kintetsu Nara Line and
Sennichimae Line Nippombashi
neighborhoods lifestyles and provide lifestyle-related services
Station Station ● Renew commercial facilities in stations ● Coordinate and cooperate with government
Namba Hiroba
JR Namba
Station
Station Plaza
(planned)
Takashimaya Ura Kuromon Renovate stations according to community agencies and related locations
Swissotel
Namba
area
Ichiba
characteristics to enhance functionality by
Namba
Nankai Osaka
Fraser Residence
Station doing the above. Wakayamashi Station Revitalization Plan
Nankai Osaka Namba Namba (entire construction scheduled to be complete in March 2020)
City
SkyO
Medium Term Business Plan
5 Upgrade and Expand the Real Estate Business
Related
40 billion yen
Namba
Parks Fundamental policy
JR Kansai
● ●
Main Line
Start full operation of Namba SkyO early Promote development of the surrounding investments
(opened October 17, 2018) Namba
EKIKAN Nippombashi area centered on the NAMBA Ekikan Project
Zepp Namba
Denden
Town
Advance diverse real estate Promote functionality enhancement of
(OSAKA)
Osaka Kizu
Wholesale businesses focused on areas logistics facilities
Line
Marke
along our train lines ● North Osaka Distribution Center advanced
nkai
BON HOSTEL
facility first phase development (opening
Statioebisu Na
Daikokucho Acquire new
Station Ebisucho
Station
real estate scheduled spring 2020)
n
properties
iya
JR
● Promote construction planning for second and
Imam
Imamiya
Station Urban
Renovation
Employment
and exchange
Shinsekai
area
development later phases
center for Increase ● Acquire seed lot for East Osaka Distribution
foreigners
income
Shin-Imamiya Hoshino Resort
development plan properties Center
CSR overview
Station
Entry into
Tramway
Hankai
Sales fee-based
businesses
Image of North Osaka Distribution Center advanced
facility first phase development
● Participate in the “Namba Hiroba In order to drive the urban development of ● Create an employment and exchange Long-term
(opening scheduled spring 2020)
daycare
Remodeling Plan,” which is a public-private Namba, we will continue focusing efforts on center for foreigners near Shin-Imamiya
cooperative project three areas: acquiring new properties, receiving Station (opening schedule September
(Basic plan to reorganize road space contracts for our property management business 2019)
around Namba Station in March 2017) and renovating properties that we already own.
Financial report
Company profile
15 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 16
Safety Safety Information Report Efforts to prevent and minimize disasters
Financial and nonfinancial
highlights
Reinforcement of earthquake resistance for
In accordance with Section 4, Article 19 of the Railway Business Act, Nankai publically releases its station and overpass pillars
Safety Report, which details the measures taken to ensure transportation safety during the previous A Nankai trough megathrust earthquake or other large-scale
fiscal year, as well as other efforts to ensure safety (excerpt). earthquake is predicted to occur in the future. In
preparation, we are systematically undertaking earthquake
reinforcement of station buildings, elevated track pillars and
Message from the president
other structures.
Safety Policy Safety measures for Kinokawa Bridge on the
Nankai Line Reinforcement of overpass pillar earthquake resistance (by wrapping with steel sheets)
For the Kinokawa Bridge on the Nankai Line, we have
The Corporate Philosophy of our company includes
Safety Policy soundness inspections conducted by expert organizations
“Contribution to the Community” and “Putting the Customer
1. Safety is the Company’s overriding priority; by working and confirm that passengers can ride with peace of mind. In
First.” We are striving to make safety our first priority so that
together we shall prevent accidents order to further improve safety, however, we have been
we can fulfill the trust we receive from society and provide 2. As a company and in our work tasks we will strictly comply advancing construction for safety measures, including for
customers with the best service. with all laws and regulations related to transport safety bridge collapse prevention and reinforcement of bridge
Nankai Group Business
We established a Safety Policy in October 2006, and have 3. The Company will enforce rigid checks and undertake piers. In fiscal 2017, we completed work on bridge piers on
worked to develop systems for undertaking business the safest methods at work
the inbound line.
Vision
activities with a “safety first” mindset. We are also working to 4. In the event of an accident or a disaster, saving human
assure transportation safety through the holistic utilization of lives takes priority over everything and the Company shall
implement appropriate safety measures without delay Emergency earthquake notification system
railway facilities, rolling stock and company employees. 5. The Safety Management System shall be implemented in
In 2015, we distributed cards with our Safety Policy to every Our emergency earthquake notification system assures the
an appropriate manner and the Company will constantly
employee and sought to cultivate the safety mindset look to improve the system
safety of our trains by automatically directing the drivers of
throughout the company. all our trains to make emergency stops before seismic Reinforcement of Kinokawa Bridge piers on Nankai Line (incorporation of steel bars)
Established October 1, 2006, revised June 26, 2009
waves with intensities of weak shindo 5 or higher reach our
Medium Term Business Plan
train lines.
Posting of tsunami hazard maps and evacuation
Measures to assure customer safety
Japanese Communication
location and route maps Meteorological satellite
Agency
We have compiled information about areas along our train
lines that are expected to be inundated by a tsunami in a Emergency stop
Safety Investment pamphlet that we have our crew members carry. We also
Multifunction Transportation
command
distribute this to our stations and related workplaces. seismometer command (train wireless)
Moreover, we are posting tsunami hazard maps and
In order to implement the necessary safety measures as Safety Investment evacuation location and route maps at stations in areas Earthquake
CSR overview
planned without delay, we invested about ¥9.2 billion in the Amount invested (millions of yen) subject to evacuation (inundation areas). occurs
renewal and improvement of facilities, rolling stock and other 15,000
Transmission of large Transmission of small
13,069
infrastructure during fiscal 2017. 11,788 Tsunami evacuation signboards vibrations (S-waves) vibrations (P-waves)
We are doing this in preparation for a large-scale earthquake 2,577 Emergency earthquake notification system
10,000
9,136 2,572 We are installing tsunami evacuation signboards for tsunami
that is expected to occur in the future. The measures we are 8,297
1,194
8,525 inundation areas that have been designated by Osaka and
advancing include construction work to enhance the 1,500 1,660
Wakayama prefectures. In addition to indicating the edges of
earthquake resistance of station buildings and overpass 5,000 10,492
6,865
9,216 these areas, they show evacuation guidance if trains stop
6,797 7,942
pillars as well as to prevent train door accidents and improve between stations and direct passengers to safe places
station platform safety. before a tsunami reaches these locations.
Financial report
0
We plan to invest about ¥10.4 billion in facilities in order to 2014 2015 2016 2017 2018 (Fiscal Year)
continue advancing safety measures systematically during (forecast)
Safety investment Other investment
fiscal 2018.
Major equipment investments in Fiscal 2017
Tsunami hazard maps distributed to crew
• Reinforced earthquake resistance of station buildings (Haruki Station and Shirasagi Station) members and workplaces
• Installed new obstacle detection equipment and intensive monitoring systems for railroad crossings and renewed other
equipment related to railroad crossings
Company profile
• Reinforced earthquake resistance of overpass pillars Posting of evacuation
Tsunami evacuation signboard
• Reinforced bridge piers of Kinokawa Bridge on Nankai Line route map
• Manufactured new 8300 series train cars (12)
• Installed tactile paving with inside lines (Tsuruhara, Izumi-Omiya, Suwanomori, Hamaderakoen and Hakotsukuri stations)
• Updated transformer silicon rectifiers (three locations, including Tsukijibashi transformer)
• Conducted continuous grade separation projects (in Sakai and Takaishi cities)
17 The Nankai Electric Railway CSR Report 2018 The Nankai Electric Railway CSR Report 2018 18You can also read
