February 15, 2013

Medium-Term Management Plan 2013 – 2015

KNT-CT Holdings Co., Ltd.

ContentOrganizational Structure of the ManagementIntegration ・・・・・・・・・・・・・・・・・・1

Business Structure ・・・・・・・・・・・・・・・・・・2

Medium-Term Vision ・・・・・・・・・・・・・・・・・・3

Medium-Term Priority Initiatives ・・・・・・・・・・・・・・・・・・5

Basic Policies of Main Businesses ・・・・・・・・・・・・・・・・・10

Financial Plan, Financial Targets ・・・・・・・・・・・・・・・・・13

IR Inquiries ・・・・・・・・・・・・・・・・・15

Organizational Structure of the Management Integration

Kinki Nippon Tourist Individual

Tour Co., Ltd.

Kinki Nippon Tourist Co., Ltd.

Club Tourism International Inc.

Transfer of shares(Media-based Travel

Business)

KNT-CT Holdings Co., Ltd.

-1-

Absorption-type split(Group Tour Business)

Absorption-type split(Individual Travel

Business)

Business Structure

Kinki Nippon Tourist Co., Ltd.

Club Tourism International Inc.

Kinki Nippon Tourist Individual Tour Co., Ltd.

KNT-CT Holdings Co.,

Ltd.

Kinki Nippon Tourist Hokkaido Co., Ltd.

Kinki Nippon Tourist Tohoku Co., Ltd.

Kinki Nippon Tourist Chugoku-Shikoku Co., Ltd.

Thirteen domestic consolidated subsidiaries of KNT-CT Holdings Co., Ltd.

Fifteen overseas consolidated subsidiaries of KNT-CT Holdings Co., Ltd.

Two subsidiaries

Kinki Nippon Tourist Individual Tour Sales Co., Ltd.

Kinki Nippon Tourist Kyushu Co., Ltd.

-2-

Medium-Term Vision

We will always take up the challenge of inspiring people’s dreams and

amazement all over the world

-3-

Medium-Term Vision

Inspiring dreams and amazement

Independent management

Enhanced cooperation

Investment in growthStrengthening the

financial foundation

Promptly returning profits to

shareholders

Maximizing synergy effects

Poster announcing its management integration

-4-

Medium-Term Priority Initiatives

Reform the Individual Travel business by taking advantage of the marketing and travel planning expertise of Club Tourism International.Leverage the Kinki Nippon Tourist brand to attract new customers to Club Tourism International.Pursue strategic measures to uncover and stimulate demand for local government-related travelFacilitate cooperation beyond the boundaries of group companies and divisions

～Promote business that inspires dreams and amazement～1. Maximize synergy effects in operations

-5-

Medium-Term Priority Initiatives

Promote uniform work flows to standardize and integrate operations

Optimize business investment plans with a focus on IT and reduce associated expenses

2. Cut down on costs by making the management of divisions more efficient

Effective use of tablet computers when explaining tours to customers

-6-

Medium-Term Priority Initiatives

Proactively invest in human resources that are vital to the travel business

3. Develop and motivate human resources

Overseas training is utilized to develop employees

Training for introducing tablet computers

-7-

Medium-Term Priority Initiatives

Expand business through collaboration between overseas subsidiaries and Club Tourism International.Strengthen the outbound travel business of each travel agent in AsiaPromote new joint ventures in areas where has not been set up operations

4. Develop global business focusing on Asia

A new travel agent established in 2012 in Taiwan

A hotel reservation system for customers booking with any global travel agent

-8-

Medium-Term Priority Initiatives5. Improve management’s ability to carry out strategies

Promote accurate judgments by management and flexible decision-making to best suit the entire group in line with the transition to a holding company frameworkEnsure thoroughgoing compliance and risk management

Announcing the management integration at a press conference held on August 10, 2012

-9-

Basic Policies of Main Businesses

1. Step up initiatives in the MICE business toboost sales

2. Improve marketing operations to attract more customers

3. Share know-how with a view to improve travel proposal and planning capabilities

4. Collaborate with group companies to promote tours that attract customers to various regions

5. Make use of sporting events to promote tours to various regions

Group Tour Business

-10-

Basic Policies of Main Businesses

1. Promote integrated management between travel planning companies and travel agents

2. Revamp travel packages, including improvements to theme-based value-added travel, and set up designated travel agents to handle special interest tours

3. Develop human resources and train employees so thatthey better understand travel destinations

4. Promote sales of value-added packaged tours via theInternet

5. Manage and analyze customer data to revamp travel packages and upgrade travel agents

Individual Travel Business

-11-

Basic Policies of Main Businesses

1. Take all-out efforts to differentiate travel packages from other companies

2. Thoroughly apply the sangen principles ofJapanese management

3. Produce media that takes into account the standpoint of customers

4. Devise customer strategies targeting senior travelers

5. Improve customer service by enhancing relations with tour conductors

Media-based Travel Business

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Financial Plan

FY2013 FY2014 FY2015(Reference)FY2017

Sales(Turnover)

4,650(5,750)

4,750(5,850)

4,850(6,000)

5,000(6,200)

Operating income 44 50 58 85

Net income 15 24 30 50

Capital adequacy ratio 17.0% 18.5% 20.0% 24.0%

(Unit: Billions of Yen, %）

Note: Sales are determined on an accounting basis, and therefore differ from turnover.

-13-

Financial Targets

17.0

18.520.0

24.0

15.0

20.0

25.0

30.0

2013年度 2014年度 2015年度 2017年度

Capital adequacy ratio％

465475

485500

4,000

4,500

5,000

5,500

2013年度 2014年度 2015年度 2017年度

Sales(Billions of yen)

FY2015 FY2017

4.45.0

5.8

8.5

0

20

40

60

80

100

2013年度 2014年度 2015年度 2017年度

Operating income(Billions of yen)

1.5

2.43.0

5.0

0

20

40

60

2013年度 2014年度 2015年度 2017年度

Net income(Billions of yen)

-14-

FY2013 FY2014FY2013 FY2014 FY2015 FY2017

FY2013 FY2014 FY2015 FY2017FY2013 FY2014 FY2015 FY2017

550

500

450

400

6.0

4.0

2.0

0

10.0

8.0

6.0

4.0

2.0

0

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Higashi-Kanda Fukoku Seimei Building1-7-8 Higashi Kanda, Chiyoda-ku, Tokyo, Japan 101-8641

Public Relations, General Affairs Department,Kinki Nippon Tourist Co., Ltd. TEL：03-6891-6839 FAX：03-6891-6890URL：http://www.kntcthd.co.jp/

These materials are not intended to solicit investment, but are provided for reference only. Please refer to the company’s financial statements and securities reports for accurate earnings figures. The financial targets provided in this material are based on information available at the time of writing, however, actual results may differ from the forecasts as a result of changes in a range of factors.

KNT-CT Holdings Co., Ltd.

IR Inquiries