The Corporate Image in 2050 announced
The COVID-19 pandemic made the company realize that changes in the world can be both intense and sudden. To consider our group’s future management, in 2022, the company established “Nankai’s Corporate Image in 2050” to create a basis for decision making amid intense change, while using backcasting to build strategies for the future. This corporate image describes, from a medium-term and long-term perspective, what kind of company we want to be and in order to be wanted by society for years to come. To ensure that this image looked ahead to 30 years from then, when employees who joined at that time could lead our group, opinions were collected from a broad range of employees, including through roundtable discussions with young staff. As a result, the future image of our group was described as follows: “With our roots within the local communities, NANKAI with an entrepreneurial spirit is firmly committed to creating ‘DiverCity’ in Kansai.” This image embodies our aspiration to be a company that keeps working on new businesses until they succeed. To this end, four policies are presented: Community coexistence and collaborative creation, diverse lifestyles; Mobility; Diversity and globality; and Nankai identity. The term “DiverCity” is a neologism made up of the words “diversity” and “diverse city,” which the company is pursuing.
The Medium-term Management Plan, Kyoso 140 Plan, announced
To realize the “Nankai’s Corporate Image in 2050” and achieve the Nankai Group Management Vision 2027, the company positioned the three-year period starting in FY2022 as a time for restructuring and building the foundation for growth after the COVID-19 pandemic, and it formulated the Medium-term Management Plan, Kyoso 140 Plan. To advance sustainable management, the company decided to direct investment toward nurturing new business opportunities for further growth toward 2050 while ensuring strategic investments. Furthermore, in recognizing that the spirit of “collaborative creation” and “company’s spirit of collaborative value creation with stakeholders” remained unchanged from the previous Medium-term Management Plan, the plan was again named “Kyoso (collaborative creation).”
Three business strategies are as follows:
- Sustainable management of public transportation business
- Systematic promotion of safety measures and disaster countermeasures
- Utilization of digital technologies: Establishment of new technologies and frameworks and enhancement of preventive maintenance
- Enhancement of profitability and improvement of brand services
- New services—Evolving into a comprehensive mobility business
- Develop the most popular areas along railway lines and deepen and expand our real estate business
- Community development through Kyoso (collaborative creation)
- Acceleration of the Greater Namba concept—transforming Namba into a location that is famous across Asia
- Sustainable development of Semboku New Town
- Functionality enhancement of logistics facilities
- Establishment of private REIT
- Future exploration
- DX strategy: Establishing digital customer contact points and creating new value
- Acceleration of initiatives for new businesses
- Coexistence with foreigners
- Enhancement of tourism-related businesses
- Provision of new services in the new normal era
The Kyoso 140 Plan clearly stated that in order to reliably implement the business strategies, it was necessary to link it to the human resource strategies and financial strategies, requiring commitment to strengthening their linkage. For the human resource strategy, the plan required that a new human resource portfolio be built by enhancing productivity, securing and developing talent, and providing diverse opportunities for contribution. For the financial strategy, the plan required that diverse funding methods including establishing a private REIT be implemented to execute necessary investments in a timely manner while giving the highest priority to financial soundness.
The numerical targets (on a consolidated basis) for FY2024, the final year of the plan, were set as follows:
- Operating income*1:
- 28.0 billion yen
- Net interest-bearing debt/EBITDA*2 ratio:
- 7.5x or lower
*1 Operating income + Dividend income
*2 Operating income + Dividend income + Depreciation and amortization
Appointment of Chairman Achikita and President Okajima
Effective April 1, 2023, Teruhiko Achikita, President, assumed the position of Chairman and CEO, and Nobuyuki Okajima, Senior Corporate Officer, assumed the position of President and COO (becoming a Representative Director on June 20 of the same year).
Senior Corporate Officer Okajima was appointed President due to his extensive expertise in the railway business, combined with his track record as an executive cultivated through roles such as President of Kumano Kotsu Co., Ltd., and his leadership ability. At his inaugural press conference, he emphasized that “people” were the key to future growth, stressing the need to advance digital transformation (DX) across the entire group to deepen and expand the two pillars, the transportation and real estate businesses. He stated that the transportation segment, particularly railways and buses, the core of the group, faced the urgent need to boldly transform existing operational methods while ensuring safety. He also expressed his ambition to explore initiatives in new areas leveraging their characteristics, following new businesses like e-sports, as the third business after transportation and real estate.
Enhanced value of areas along our railway lines through strategic acquisition and management integration
Acquisition of Tsutenkaku Kanko
After formulating the Nankai Group Management Vision 2027, our company devoted its full efforts to enhancing the value of areas along our railway lines. Particularly, in the field of area management, while advancing various initiatives under the banner of creating “Greater Namba,” the company focused on the Shinsekai area, where diverse elements blended across nationalities and generations, as a suitable second gateway following Namba for our group to strive to build diversity.
Against this backdrop, on December 27, 2024, our company made Tsutenkaku Kanko Co., Ltd. a subsidiary. Tsutenkaku Kanko operated Osaka’s iconic Tsutenkaku Tower. This move aimed to build a stronger relationship with it to grow shared business areas such as Namba, Shinsekai, and Shin-Imamiya. Preceding this, on December 4, a ceremony for Tsutenkaku’s entry into the Nankai Group was held in front of Tsutenkaku’s main entrance with the theme of “Nankaii Tsutenkaku Tower.” The presidents of both companies shared their aspirations for the future, attracting significant social attention.
Acquisition of Meiko Bus
In the Kyoso 140 Plan, the company aimed to strengthen tourism-related businesses, formulating the Wakayama area strategy to promote long-stay and round-trip tourism in the Wakayama region, which possesses tourism-related management resources.
Tanabe City, Shirahama Town, and Kamitonda Town in Wakayama Prefecture, where Meiko Bus Co., Ltd. operates, form the prefecture’s largest tourist destination, boasting abundant resources such as the Kumano Kodo pilgrimage routes and Nanki Shirahama Onsen hot springs. Our company made Meiko Bus a subsidiary on October 1, 2024, believing that the bus company is essential for revitalizing the region through redevelopment of intra-prefectural transportation environments and tourist bases with the use of public transport, as well as for capturing inbound business opportunities, as stated in the strategy. Our company had previously operated hotels, traditional Japanese inns, and a bus business in the Tanabe-Shirahama area but withdrew during the recession of the early 2000s. This initiative marked our re-entry into the region.
Management integration with Semboku Rapid Railway
On April 1, 2022, our company made Semboku Rapid Railway a wholly owned subsidiary to further leverage synergies. Furthermore, in December 2023, the Board of Directors resolved to reach a basic agreement on management integration with Semboku Rapid Railway. As both companies operated in similar businesses—railway operations and real estate leasing, this agreement aimed to make full use of management resources to achieve sustainable railway operations and sophisticate logistics facilities. It was agreed to proceed with discussions based on the premise of absorption-type merger, with our company as the surviving company and Semboku Rapid Railway as the absorbed company. After one year and three months of discussions between the two parties on various issues, they merged on April 1, 2025.
As a result, the Semboku Rapid Railway Line was renamed to the Semboku Line. On the same day, Nankai Electric Railway’s fare schedule was applied to fares between Nankai and Semboku, eliminating double payment for the basic fare. This led to fare reductions of up to ¥150 for standard adult fares, up to ¥12,470 for adult monthly commuter passes, and up to ¥5,640 for adult monthly passes for students.
140-year tradition passed on, and new uniforms announced for a fresh start
With our 140th anniversary approaching on December 27, 2025, our group established a commemorative logo and the concept “Legacy into the Future.” This embodies our gratitude to local residents, customers, and partners, and it declares our commitment to carrying forward our 140-year tradition while continuing to take on new challenges for the future. The logo design was commissioned to Junko Koshino, a world-renowned designer who grew up in an area along our railway line and has a deep affection for our company, and who also serves as a Senior Advisor for Expo 2025 Osaka, Kansai, Japan.
The year 2025 will mark our 140th anniversary and a milestone year for both our company and the Kansai region, featuring the merger of Semboku Rapid Railway and the hosting of Expo 2025 Osaka, Kansai, Japan. To further strengthen employee unity and provide the highest level of hospitality to visitors coming to Kansai for the Expo, the company decided to revamp our uniforms.
The uniform design, like the logo, was commissioned to Ms. Koshino, with the concept being “UNITY” (the power to connect and unite). With gender neutrality in mind, new uniforms were crafted using specifications and materials that make employees comfortable and easy to move in and maintain, incorporating employee feedback. On April 1, 2025, the transportation division’s uniforms were changed for the first time in 32 years. The technical division’s uniforms were also changed in September of the same year.
Spin-off of the railway business and transformation into a community development company
On February 28, 2023, in order to facilitate the transition to segment management and the delegation of authority, the company reorganized existing corporate divisions and established new Public Transportation and Community Development Groups, revising our operational structure. Moreover, the company delegated decision-making authority regarding operational execution to each group head, in order to enable swift decision-making responsive to changing times and to foster the next generation of management talent.
In this way, the company consolidated business operations, including group companies, under each group, establishing a framework for segment management. Simultaneously, the company fully implemented strategies tailored to each segment’s characteristics, such as advancing into the rotational real estate business, including establishing a private REIT in the real estate business. Under these circumstances, advancing our business strategies with greater speed was essential to realize our vision for the future. The company determined it necessary to reform into a resilient organization with execution frameworks tailored to the respective characteristics of the railway business and the real estate/community development business. Consequently, it announced the spin-off of the railway business on October 30, 2024.
On March 3, 2025, Nankai Electric Railway Split Preparation Co., Ltd. (“Preparation Company”) was established. At the Board of Directors meeting held on March 31, 2025, it was resolved that the railway business would be transferred to the Preparation Company through a company division, effective April 1, 2026. An absorption-type company division agreement was concluded with the Preparation Company. This agreement was approved at the Regular General Meeting of Shareholders held in June 2025.
Through this spin-off, the Preparation Company will take over the railway business from our company, and our company will become a business holding company that drives the overall growth of the group through real estate business and future exploration, while also serving as the command center for community development and providing the group’s corporate functions.
Announcement of a new trade name
At the Board of Directors meeting held on March 31, 2025, it was also resolved that, in conjunction with the company split, the company would change its trade name to NANKAI Co., Ltd. effective April 1, 2026. This resolution was approved at the Regular General Meeting of Shareholders in June 2025.
Our group’s mission is to enhance the value of areas along our railway lines and to continuously contribute to their well-being. The name “Nankai,” developed together with the communities over the years, embodies the very pride rooted in these areas. With a strong commitment to further polishing the unique characteristics of the areas—such as inbound demand and diversity—and to further increasing the presence of both the areas and our group, the company chose the alphabetical word “NANKAI” as our new corporate name.
Furthermore, the name of the Preparation company will be “Nanaki Electric Railway,” reflecting our commitment to carry forward the history and pride we have built as the first railway company in Japan to be entirely funded by private capital alongside our railway business.
Results of the Kyoso 140 Plan
During the three years for the Kyoso 140 Plan, the company proactively implemented governance reforms for the future, including transitioning to segment management, advancing the business integration with Semboku Rapid Railway, and deciding to spin off the railway business. In the public transportation and community development sectors, the company largely executed strategic initiatives as planned, steadily captured the recovery in demand, and rebuilt our revenue base to pre-pandemic levels. As a result, the company exceeded our numerical targets one year ahead of schedule.
The specific results of implementation of the three items for the business strategy are as follows:
- Sustainable management of the Public Transportation Business
- Securing investment funds through fare revisions, advancing continuous overpass constructions
- Decision to integrate the management with Semboku Rapid Railway and spin off the railway business, increasing one-person-operated train sections
- Demonstrative testing of autonomous operation
- Introducing the touch payment system, revising the Airport Line schedule, conducting testing of the on-demand bus service
- Developing the Most Popular Areas Along Our Railway Lines and Deepening and Expanding the Real Estate Business
- Development of Namba Hiroba, opening of Namba Parks South, and consolidation of Tsutenkaku Kanko Co., Ltd., as a subsidiary
- Full-scale development of the rotational business (launch of a private REIT), and functionality upgrades to logistics facilities
- Semboku New Town Smart City Strategy Promotion
- Future Exploration
Full-scale entry into the e-sports business, promotion of an overseas human resources placement service, formulation of a tourism strategy
On the other hand, challenges remained, including growth investments falling short of targets. This was primarily because the acquisition of income-generating properties did not progress as anticipated and construction plans needed to be revised amid soaring building material prices.
As a result of these initiatives, operating revenue for FY2024 reached 260.7 billion yen, operating income was 34.6 billion yen (excluding dividend income), and net interest-bearing debt/EBITDA ratio (operating income + dividend income + depreciation and amortization) stood at 5.8 times.
