NANKAI Group Medium-term Management Plan 2025-2027 announced
The three-year period from 2025 to 2027 marks the final phase of the Nankai Group Management Vision 2027, following the Kyoso 136 Plan and the Kyoso 140 Plan. Furthermore, alongside the increase in foreign visitors to Japan, Kansai’s economy is poised for significant growth opportunities. These include Expo 2025 Osaka, Kansai, Japan, the expansion of Kansai International Airport’s facilities, the planned opening of the Osaka IR (Integrated Resort) around autumn 2030, and the scheduled opening of the Naniwasuji Line in 2031.
Under such circumstances, Nankai Electric Railway positioned the three-year period starting in 2025 as a time to break away from our traditional approach and transform into a new NANKAI Group, in order to continue fulfilling our social mission into the future. The company formulated the NANKAI Group Medium-term Management Plan 2025-2027 and announced it on March 31, 2025.
While there were expectations for growth in the Kansai economy, the company saw the future of its business areas as challenging because of factors such as a significant rate of population decline. As its financial situation improved after being damaged by the pandemic, the company decided that now is precisely the time to take proactive, aggressive action. It set the basic policies as follows: To continue fulfilling our social mission while maintaining profitability, we will prioritize strengthening our core businesses (real estate business and public transportation business) through concentrated investment to significantly increase corporate value. Based on the above policies, the company set the top priority strategies and also set the foundational strategies to be universally implemented to allow the company to continue fulfilling its social mission. The total investment over the three-year period is planned to be a record high of 360 billion yen.
The company reaffirmed our core businesses within the Group, establishing two top priority strategies: “Accelerated expansion of the real estate business” and “Transformation into a public transportation business that paves the way for the future.” For the real estate business, the company aims to transition from its landlord business to an integrated real estate business, incorporating M&A as an option, and will pursue significant changes with an eye toward becoming a community development company. For the public transportation business, there is a sense of urgency that the business’s future is at risk if the current situation continues, so we will make the necessary concentrated investments for the future and take on the challenge of sustaining the business’s growth.
The company’s foundational strategies include scaling new businesses while continuing to explore the future, realization of efforts to develop the most popular areas along our railway lines, which continue to be preferred, and strengthening the link between corporate strategy (human resources strategy, DX strategy, financial strategy ) and business strategy.
The numerical targets for the final fiscal year 2027 were set as follows:
- Operating income (including dividend income):
- 36.0 billion yen or more
- Net interest-bearing debt/EBITDA* ratio:
- 7x range
- ROE:
- Approx. 7%
* Operating income + Depreciation and amortization + Goodwill amortization
Establishing Our Social Mission and Guiding Principles
To streamline and align our existing corporate statements – such as corporate philosophy, group management policies, and the Nankai Five Principles – we launched the Nankai Group New Principles Project (commonly known as the “Shin-Shi-Shin Project”) in January 2024. To ensure the guidelines resonate with all employees across the NANKAI group, we conducted surveys and interviews with employees in diverse roles across the Group. Based on the results, we defined Social Mission and Guiding Principles centered on “Everyday Peace and Joy” and shared them internally on October 1, 2025. Furthermore, the railway business will be spun off into a new railway company. The Mission, Vision, and Values (MVV) for this new railway company will also be implemented starting April 2026, as the Group transitions to its new structure.
[Social Mission]
Rooted in our communities,
we engage with people and foster “Everyday Peace and Joy”,
carrying that commitment forward into the future.
[Guiding Principles]
- Warmth
- Act with empathy and compassion, keeping people at the heart of what we do.
- Integrity
- Act with sincerity and integrity to uphold the trust of our community and society.
- Ownership
- Take ownership of our roles and take pride in the work we deliver.
- Pioneering Spirit
- Look ahead of the times, anticipate people’s expectations, and embrace challenges to make things better.
- Collaboration
- Collaborate across boundaries, leverage our collective strengths, and deliver shared success.