Revision of Numerical Targets in the “NANKAI Group Medium-Term Management Plan 2025–2027”

Revision of Numerical Targets in the Medium-Term Management Plan

NANKAI Electric Railway Co., Ltd. has revised the numerical targets of its Medium-Term Management Plan 2025–2027, announced on March 31, 2025, at the Board of Directors meeting. The operating income target for fiscal year 2027 was revised upward from 36 billion yen or more to 42 billion yen or more, and the ROE will be maintained at 7% or above. The net interest-bearing debt to EBITDA ratio remains at the 7x level. Operating income for fiscal years 2025 and 2026 is expected to exceed the plan, mainly due to expanding inbound demand, revision of limited express fares, and increased profit contributions from the real estate business.

Future Strategy and Financial Policy

The company will concentrate investments in its core businesses, the real estate business and public transportation business, implementing total investments of up to 360 billion yen from fiscal years 2025 to 2027. It aims to significantly enhance corporate value through segregation of the railway business and M&A initiatives. Financially, it will focus on improving capital efficiency, enhancing credit ratings, and continuing share buybacks and cancellations. The dividend payout ratio target is approximately 30% in fiscal year 2027, with a basic policy of stable dividends and flexible shareholder returns. The plan will be updated in line with the formulation of the next medium-term management plan.