FY2017(Fiscal year ended March 31, 2017)

Financial Results Presentation

May 11, 2017
Keihan Holdings Co., Ltd.
(Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.co.jp/)[Notes on forecasts]
Descriptions of business forecasts and future prospects are based on current information and certain
assumptions about factors that may affect future business. The actual results of operating performance may
differ from these forecasts.

Overview of FY2017
Financial Results

Consolidated Statements of Income
Overview of FY2017(year-on-yearcomparison)

Both revenue and profits increased due to factors such as the strong passenger revenue of Keihan
Electric Railway Co., Ltd. in the transportation business, and the sale of a for-lease property in the realestate business.
Operating revenue, operating income, ordinary income, and profit attributable to owners of the parent
company all reached record high for five consecutive terms.
(Millions of yen)

FY2016 Results

FY2017 Results

Operating revenue

300,188

302,917

Operating income

31,52432,343

2,145

2,050

-94

5,208

4,058

-1,15028,46130,335

1,874(6.6%)

Extraordinary income

8,239

5,403

-2,835Extraordinary losses

4,630

4,036

-593

Profit attributable toowners of parent

22,385

22,636250(1.1%)

ROA

4.7％

4.8％

0.1pt

ROA: Operating income to total assets

ROE

11.9％

11.6%

-0.3pt

ROE: Net income to shareholders’ equity

Capital expenditures

31,39839,173

Depreciation

17,571

EBITDA

49,095Non-operating
incomeNon-operating
expenses
Ordinary income

ChangeMain factors of changes

2,728(0.9%)
819(2.6%)

October Estimate
of FY2017 Results

Change300,000
Refer to Segment Information.
29,3002,917(1.0%)
3,043(10.4%)

Interest expenses -778
27,4002,935(10.7%)

20,0002,636(13.2%)

7,775

45,300-6,126

18,074503

18,300-225

50,4181,322

47,6002,818

Gain on bargain purchase -4,709
Gain on sale of investment securities +2,427
Loss on step acquisitions -2,119
Impairment loss +1,298

EBITDA: Operating income + Depreciation

Number of consolidated subsidiaries: 39 (two companies less than the previous term), Number of equity-method affiliates: 2 (one company more than the previous term)

2

Segment Information
The transportation business posted a larger revenue and smaller profits. Both revenue and profits rose in the real estate business,while they both shrank in the retail distribution business. The leisure and service business posted a smaller revenue, but an increasein profits. Other businesses improved their revenue.
(Millions of yen)

Change (%)

October
Estimate of
FY2017 Results

FY2016 Results

FY2017 Results

Total operating revenue

300,188

302,917

2,728

0.9%

300,000

2,917

1.0%

Total operating income

31,52432,343819

2.6%

29,300

3,043

10.4%

Operating revenue

93,562

94,404841

0.9

93,900504

0.5Operating income

10,193

9,976

-216

-2.1

8,500

1,476

17.4

Operating revenue

89,033

94,0144,980

5.6

90,3003,714

4.1

Operating income

13,882

14,491609

4.4

13,700791

5.8Operating revenue

98,87598,493-382-0.4

99,800-1,306-1.3

Operating income

2,826

2,636

-190

-6.7

2,800

-163

-5.8

Operating revenue

31,81330,801-1,011-3.2

30,600201

0.7Operating income

4,599

4,755

155

3.4

4,300

455

10.6

Operating revenue

1,755

1,792

36

2.1

1,800

-7

-0.4

Operating income

-12

74

86

－

0

74

－

Operating revenue-14,852-16,588-1,736－-16,400-188－

Operating income

34

408

374

－

0

408

－

ChangeChange (%)

ChangeTransportation

Real estate
Retaildistribution
Leisure andservice
OthersAdjustments

3Segment Information (Breakdown)[Consolidated subsidiaries] 40 companies[Equity-method affiliates] 2 companies

Transportation

Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd., and 13 other companies

Real estate

Keihan Holdings Co., Ltd., Keihan Dentetsu Real Estate Co., Ltd., Keihan Building Co., Ltd., Keihan AssetManagement Co., Ltd. and 6 other companies

Retail distribution

Keihan Department Stores Co., Ltd., Keihan The Store Co., Ltd., Keihan Ryutsu Systems Co., Ltd., Biomarket Co., Ltd.
and 1 other company

Leisure and service

Hotel Keihan Co., Ltd., Keihan Hotels & Resorts, Biwako Kisen Steamship Co., Ltd. and 5 other companies

OthersKeihan Card Co., Ltd.

Leisure and service
JPY30.8 billion(9.6%)<Operating revenue by segment><Operating income by segment>

OthersJPY1.7 billion (0.6%)

Others
JPY0.0 billion (0.2%)
Leisure and service
JPY4.7 billion(14.9%)

Transportation
JPY94.4 billion(29.6%)

Retail distribution
JPY2.6 billion(8.3%)

Retail distribution
JPY98.4 billion(30.8%)

Real estate
JPY94.0 billion(29.4%)

Real estate
JPY14.4 billion(45.4%)

Note: Breakdown of operating revenue and operating income by segment, including intersegment transactions.

4

Transportation
JPY9.9 billion(31.2%)

Segment Information (Transportation)
Railway business
Revenue grew thanks to the strong passenger revenue of Keihan Electric Railway helped by factors such as an increase in thenumber of tourists to the Kyoto area. However, profits declined due to factors such as an increase in repair expenses.
Bus business
Revenue shrank due to reductions in income from chartered bus and regular sightseeing bus services resulting from businessdownsizing. However, profits grew thanks to factors such as declines in fuel oil expenses.
(Millions of yen)

Operating revenue
FY2016
Results

FY2017
Results

Operating income

ChangeChange(%)

FY2016
Results

FY2017
Results

ChangeChange(%)

Railway

77,627

77,962

335

0.4%

8,965

8,647

-317

-3.5%

Bus

27,03926,922

-116

-0.4%

1,136

1,278

141

12.4%

Elimination-11,103-10,480

622

－

91

51

-39

－

Transportation total

93,562

94,404841

0.9%

10,193

9,976

-216

-2.1%

<< Operating results for transportation (Keihan Electric Railway) >>Number of passengers

Passenger transportation revenue

FY2016
Results

FY2017
Results

Thousands of people

Thousands of people

Thousands of people%

Millions of yen

Millions of yen

Millions of yen%

Non-commuter
passesCommuter passes

149,616

150,735

1,118

0.7

34,61534,853237

0.7

138,757

140,351

1,593

1.1

16,11516,307

191

1.2

Total

288,374

291,087

2,712

0.9

50,731

51,160428

0.8ChangeChange(%)

FY2016
Results

FY2017
Results

ChangeChange(%)* Major factors affecting passenger revenue (estimates)
Increase in the number of tourists to the Kyoto area (+JPY 265 million); increase in the number of passengers using Hirakatashi Station (+JPY 137
million); increase in the number of passengers using the Nakanoshima Line (+JPY 53 million)

5

Segment Information (Real Estate)
Real estate sales business
Revenue increased thanks to the sale of Fine Centreo City, The Osaka Residence Umeda Ogimachi Koen, Fine Residence
Kawagoe and other apartment units, and the sale of a for-lease property. However, profits declined due to factors such as
higher costs.
Real estate leasing business
Both revenue and profits grew thanks to factors such as the full-year contribution of Keihan Building, which became aconsolidated subsidiary in the previous year, and the opening of Keihan Yodo Logistics Yard.
Other businesses
Revenue and profits both increased, helped by factors such as the establishment of Keihan Private REIT, Inc. by Keihan
Asset Management Co., Ltd. and the commencement of its operations.
(Millions of yen)

Operating revenue
FY2016
Results
Real estate

FY2017
Results

Operating income

ChangeChange(%)

FY2016
Results

FY2017
Results

ChangeChange(%)

72,28578,034

5,748

8.0%

13,352

14,220868

6.5%Real estate
sales

51,562

53,956

2,393

4.6%

4,703

4,576

-127

-2.7%

Real estateleasing service

17,971

20,706

2,734

15.2%

8,454

9,231

777

9.2%

Other
businesses

2,751

3,371

620

22.6%

194

412

218

112.4%

Construction

21,535

20,844

-691

-3.2%

442

272

-170

-38.4%

Elimination-4,788-4,864

-76

－

87

-1

-89

－

89,033

94,014

4,980

5.6%

13,882

14,491609

4.4%

Real estate total

6

Segment Information (Retail distribution)
Department stores
Revenue shrank due to factors such as the opening of a competitor in the neighborhood and poor sales of daily food items
and women’s clothing. However, profits grew due to lower expenses resulting from cost-saving efforts.
Stores
Revenue grew thanks to the impact of the opening of a new Shin-Naniwa Daishokudo food hall and a new MUJIcom store.
However, profits declined due to factors such as expenses incurred for the opening of new stores.
Shopping mall management
Both revenue and profits increased thanks to factors such as the impact of the upgrading of the Keihan Mall.
(Millions of yen)

Operating revenue
FY2017
Results

FY2016
Results

Operating income

ChangeChange(%)

FY2017
Results

FY2016
Results

ChangeChange(%)

Department store

51,01649,455-1,560

-3.1%

1

104

102

－

Store

27,89729,599

1,702

6.1%

1,090

976

-114

-10.5%

Shopping mall
management

13,82913,977

148

1.1%

1,713

1,828

115

6.7%

Others

9,093

8,819

-273

-3.0%

73

-63

-136

－

Elimination-2,960-3,358

-397

－

-52

-210

-158

－

Retail distribution
total

98,87598,493

-382

-0.4%

2,826

2,636

-190

-6.7%

<< Department Stores: Sales by store >>(Millions of yen)Moriguchi Store

Hirakata Store

Kyobashi Store

Kuzuha Store

Suminodo StoreFY2017 Results

21,466

6,861

9,456

4,517

FY2016 Results

22,744

6,517
5,600

7,054

10,167

4,856

Change-1,278

917

-193

-710

-339

* Some of the shops in the Hirakata Store were closed in the previous year due to renovations.

7Segment Information (Leisure & Service)
Hotel business
Revenue decreased due to factors such as the closing of the Kyoto Dai-ni Tower Hotel. However, profits rose thanks to theimpact of guest room upgrading in refurbished hotels such as Kyoto Century Hotel and Hotel Keihan Kyoto Grande and areduction in expenses resulting from cost-saving efforts.
* Kyoto Tower, Biwako Hotel and Kyoto Century Hotel were merged on October 1, 2016, and renamed as Keihan Hotels &Resorts.
(Millions of yen)

Operating revenue
FY2016 Results

FY2017 Results

Hotel

27,70526,874

Leisure4,318

Elimination
Leisure & Service total

Operating income
Change (%)

FY2016 Results

FY2017 Results

-830

-3.0%

4,521

4,683

162

3.6%

4,108

-210

-4.9%

284

107

-177

-62.4%

-210

-180

29

－

-206

-35

171

－

31,81330,801-1,011

-3.2%

4,599

4,755

155

3.4%

ChangeChangeChange (%)<< Hotel occupancy rates >>Hotel Keihan
Kyoto Grande

Universal Tower

Universal City

Kyobashi Grande

FY2017 Results

Tenmabashi
97.1%

97.9%

94.7%

96.4%

96.6%

97.5%

98.0%

FY2016 Results

88.6%

94.7%

96.7%

97.9%

96.7%

95.8%

96.8%

Year-on-year change(Reference)
Number of rooms

8.5pt

3.2pt

-2.0pt-1.5pt-0.1pt

1.7pt

1.2pt

315

320

641

330

214

200

178

Keihan Hotels & Resorts
Kyoto Tower
Kyoto Dai-ni
Kyoto Tower
Hotel
Tower Hotel
Hotel Annex
96.4%
69.0%
－%
94.3%
75.5%
96.9%
2.1pt
-27.9pt－pt

Kyoto Century
Hotel
93.2%
74.0%
19.2ptBiwako Hotel

SapporoAsakusa

FY2017 Results
83.6%
FY2016 Results
88.5%
Year-on-year change-4.9pt(Reference)
171
162
126
219
－
Number of rooms* Biwako Hotel and Hotel Keihan Universal Tower renovated their guest rooms. Kyoto Tower Hotel Annex underwent a full renewal (and was temporarily closed from
December 12, 2016 to March 22, 2017). Kyoto Dai-ni Tower Hotel was closed as of January 12, 2016.

8

Consolidated Balance Sheets(Millions of yen)

FY2016
Results

FY2017
Results

ChangeMain factors of changes

Current assets

168,510

157,655-10,855

Cash and deposits -6,699
Other current assets -2,595

Non-current assets

501,822521,976

20,154

Property, plant and equipment +15,672
Deferred tax assets +5,001

670,333

679,631

9,298

Current liabilities

152,337

136,217-16,120

Current portion of bonds -10,200
Short-term bonds -5,000

Long-term liabilities

326,204

339,959

13,754

Bonds +9,934
Deferred tax liabilities +3,292

Total liabilities

478,542476,176-2,365

Net assets

191,790

203,455

11,664

Total liabilities and net assets

670,333

679,6319,298Interest-bearing debt at end of
fiscal period

325,714314,539-11,174

Interest-bearing debt/EBITDA
multiple (Times)

6.63

6.24

-0.39

Net interest-bearing
debt/EBITDA multiple (Times)

6.12

5.87

-0.25

Total assets* Interest-bearing debt: Loans payable + bonds + short-term bonds

9

Retained earnings +19,288, Treasury shares -4,380* Equity capital ratio 29.5% (+1.3pt)

Loans payable -5,908, Short-term bonds -5,000, Bonds -265

Consolidated Statements of Cash Flows(Millions of yen)

FY2016
Results
Cash flows from operating activities

Cash flows from investing activities

FY2017
Results

36,334-27,750

Change38,569-29,597

Main factors of changes

2,234

Increase in accrued consumption taxes payable +6,037
Increase in other current liabilities +3,499
Increase in notes and accounts receivable-trade -9,226-1,847

Increase in expenses due to purchase of non-current
assets -5,382
Increase in income from sale of investment securities+5,007
Increase in expenses due to repayment of interestbearing liabilities -25,775
Decrease in expenses due to purchase of treasury shares+11,321

Cash flows from financing activities-5,768-20,020-14,251

Net increase (decrease) in cash andcash equivalents

2,816-11,048-13,864

Cash and cash equivalents at beginningof current period

26,552

29,372

2,820

Increase in cash and cash equivalentsfrom merger with non-consolidated
subsidiary

4

－

-4

Cash and cash equivalents at end of
fiscal period

29,372

18,324-11,048

10

Segment Information(Capital Expenditure/EBITDA)■ Capital Expenditure(Millions of yen)

October Estimate
of FY2017 Results

FY2016Results

FY2017 Results

Transportation

12,74917,6904,941

16,6001,090

Real estate

13,392

16,553

3,160

9,700

6,853

Retail distribution

1,609

2,341

731

3,100

-758

Leisure and service

3,924

1,877

-2,046

2,200

-322

Others

120

34

-85

0

34

Administration of entire
company and others

－

675

675

13,700-13,024

-398

－

398

－

－

31,39839,173

7,775

45,300-6,126

Elimination
Total capital expenditure

ChangeChange* Strategic investment posted under “Administration of entire company and others” in the FY2017 result forecasts released in October 2016 is posted under
the real estate business for the FY2017 results.

■ EBITDA(Millions of yen)

October Estimate
of FY2017 Results

FY2016Results

FY2017 Results

Transportation

20,982

20,699-282

19,4001,299

Real estate

18,216

19,224

1,007

18,500724

Retail distribution

4,111

3,913

-197

4,100

-186

Leisure and service

5,745

5,857

111

5,400

457

Others

5

104

99

0

104

Adjustments

34

618

584

200

418

49,09550,4181,322

47,6002,818

Total EBITDA

11

ChangeChangeFY2018 Forecasts

Consolidated Statement of Income(Performance Forecast)
Overview of full-year
performance forecasts
for FY2018(compared with
FY2017 results)

Revenue is expected to increase in the transportation business due to a larger passenger revenue for Keihan Electric
Railway, in the retail distribution business thanks to the impact of new store openings, and in the hotel business due tothe impact of new hotel openings. However, overall revenue is forecast to shrink due to factors such as the impact of theassignment of subsidiary shares in the transportation business, a reaction to the sale of a for-lease property in FY2017 in
the real estate business, and the impact of the temporary closure of hotels due to renovations in the hotel business.
In addition to a decline in profits caused by smaller revenue, larger repair and depreciation costs in the transportation
business and an increase in expenses for new hotel openings in the hotel business, among other factors, are projected.
Profits therefore are forecast to decrease.
(Millions of yen)

FY2017 Results

New FY2018 fullyear forecasts

Operating revenue

302,917300,000-2,917-1.0%

Operating income

32,34327,000-5,343-16.5%

Ordinary income

30,33524,500-5,835-19.2%

Profit attributable to owners ofparent22,63619,000-3,636-16.1%

Capital expenditure

39,17360,80021,62655.2%

Depreciation

18,07419,000925

5.1%

EBITDA

50,41846,000-4,418-8.8%Interest-bearing debt

314,539

329,000

14,460

4.6%

Interest-bearing debt/
EBITDA multiple (Times)

6.24

7.15

0.91

－

Net interest-bearing debt/
EBITDA multiple (Times)

5.87

6.76

0.89

－

13

ChangeChange (%)

Segment Information(Performance Forecasts)■ Operating Revenue/Operating Income(Millions of yen)

New FY2018 fullyear forecasts

2017/03

ChangeMain factors of changes

Total operating revenue

302,917300,000-2,917

Total operating income

32,34327,000-5,343Operating revenue

94,404

92,100-2,304 - Impact of the assignment of Keihan Life Support shares

Operating income

9,976

8,500

-1,476

Operating revenue

94,01488,500-5,514

Operating income

14,491

12,500-1,991

Operating revenue

98,493

103,600

5,106 - Impact of new store opening such as the “FREST Nagao

Operating income

2,636

3,000

363

Operating revenue

30,80130,90098 - Impact of the opening of Hotel Keihan Yodoyabashi andOperating income

4,755

3,900

-855

Operating revenue

1,792

1,800

7

Operating income

74

0

-74

Operating revenue-16,588-16,900-311

Operating income

408

-900

-1,308Transportation

Real estate

Retaildistribution
Leisure andservice

OthersAdjustments

14- Increase in repair and depreciation costs in the railway
business- Reaction to the sale of a for-lease property in FY2017 in
the real estate sales businessStore” in the store business and the impact of store
upgrades in the department store businessthe temporary closure of Kyoto Century Hotel forrenovation in the hotel businessSegment Information(Performance Forecasts)■ Capital Expenditure(Millions of yen)

FY2017 Results

New FY2018 fullyear forecasts

Transportation

17,69016,800-890

Real estate

16,553

18,4001,846

Retail distribution

2,341

2,400

58

Leisure and service

1,877

2,800

922

Others340-34

Administration of entire company
and others

675

20,40019,724

Total capital expenditure

39,17360,80021,626■ EBITDA

Change(Millions of yen)

FY2017 Results

New FY2018 fullyear forecasts

Transportation

20,69919,800-899

Real estate

19,224

17,400-1,824Retail distribution

3,913

4,400

486

Leisure and service

5,857

5,000

-857

Others

104

0

-104

Adjustments

618

-600

-1,21850,41846,000-4,418

Total EBITDA

15

ChangeOperating Results for Transportation(Performance Forecasts)<< Forecast of operating results for transportation (Keihan Electric Railway) >>■ Number of passengers
FY2017 Results

New FY2018 fullyear forecasts

ChangeThousands of people

Thousands of people

Thousands of people%

Non-commuter
passes150,735

150,575

-160

-0.1

Commuter passes

140,351

140,784432

0.3

291,087

291,359

271

0.1

Total

Change (%)■ Passenger transportation revenue
FY2017 Results

New FY2018 fullyear forecasts

Millions of yen

Millions of yen

Millions of yen%

Non-commuter
passes34,85335,020166

0.5Commuter passes

16,307

16,36052

0.3

51,16051,380

219

0.4

Total

16

ChangeChange (%)

TOPICS

Progress Status of KeihanGroup’s Medium-Term
Management Plan
“Bravely Pursuing Creation”

Keihan Group’s Medium-Term Management Plan
(FY2016 – FY2018)

Basic Policy

Keihan Group’s Determination to Take on
Challenges at the “Second Foundation Stage”– Bravely Pursuing Creation –Strengthen
the Management Foundation

Main Strategies
Achieve new growth through the creation ofsightseeing opportunities

Continuous measures to revitalize railway
transportation toward regaining the glory ofrailway transportation

Revitalize the areas along the Keihan Railway
lines—efforts to redesign the areas along the
Keihan Railway lines

Real estate business as the engine of thegroup’s growth

Create contents to enhance the “value ofliving”

Retail distribution business to enhance thevalue of “community” and “living”

Establish a “steadfast group management”
style

Hotel and leisure businesses to createsightseeing opportunities

18

Overview of Keihan Group’s Medium-Term
Management Plan (Measures Taken)
Qualitative goals
Achieve new growth through the creation ofsightseeing opportunities

Main
Strategies

Measures taken
Project to open a new hotel in the area in front of Kyoto Station• Renovation of Kyoto Century Hotel• Starting the construction of a new hotel
Development of Kyoto Tower as a global base for tourism• Opening of Kansai Tourist Information Center Kyoto• Opening of KYOTO TOWER SANDO

Revitalize the areas along the Keihan Railway
lines—efforts to redesign the areas along the
Keihan Railway lines• Make proposals to Hirakata City to promptly build and revitalize a community and promote settlement.
• Participation in the Hirakatashi Station area revitalization council• Conclusion of a triparty agreement (Keihan Holdings Co., Ltd., Hirakata City and SO-TWO Inc.) for the
prompt implementation of the redevelopment of the areas around Hirakatashi Station.

Create contents to enhance the “value of living”• BIOSTYLE Project: Started the construction of a commercial complex in Shijo-Kawaramachi, Kyoto.
• Made cafe co. a subsidiary.

Establish a “steadfast group management” style• Transition to a holding company system

Continuous measures to revitalize railway
transportation toward regaining the glory ofrailway transportation• Introduced a new automatic brake for trains.
• Upgraded Gion-shijo Station.
• Improved the nodes between Hankyu Railway Saiin Station and Randen Railway Sai Station.
• Introduced the next-generation, comprehensive search portal, Keihan Group Bus Navi.

Real estate business as the engine of thegroup’s growth• Continue short-term turnover-type sales business (Kansai, Tokyo metropolitan areas, and Sapporo).
• Made Osaka Merchandise Mart Corporation (currently Keihan Building) a wholly-owned subsidiary.
• Acquired Kyoto Shijo Kawaramachi Building.
• Opened Keihan Yodo Logistics Yard.
• Established Keihan Private REIT, Inc.

Retail distribution business to enhance thevalue of “community” and “living”• Upgraded Keihan Department Store Hirakata.
• Opened a new Shin-Naniwa Daishokudo food hall as part of the development project of in-station
facilities of Shin-Osaka Station.
• Upgraded the Keihan Mall.
• Opened FREST Nagao Store.

Hotel and leisure businesses to createsightseeing opportunities• Renovated hotels.
• Introduced Grande, a new brand of Hotel Keihan.

Strengthen theManagement
Foundation

19

Overview of Keihan Group’s Medium-Term Management
Plan (Comparison of Quantitative Targets)(In 100
million yen) Consolidated operating income(In 100
millions yen)
600

400

Consolidated EBITDA

300
400

2016年度FY20172017年度FY20182015年度FY20162016年度FY20172017年度FY2018Net interest-bearing debt / EBITDA multiple

9.00

Healthy results that steadily
exceed the targets.

8.00

7.00

6.00
中期経営計画Medium-Term Management Plan
実績・予想
Actual/forecast
5.00
2015年度FY20162016年度FY20172017年度FY201820

Aim to further increase profits
under the next medium-term
management plan.

Forecast

Plan

Actual0
2015年度FY2016(Times)

Plan

Plan

0

Actual200

Forecast

Plan

ActualPlan

Actual

100

Plan

200

Businesses in Kyoto Area
* Based on FY2013 as 100
Eizan trains

KuramaGarden Museum
Hiei
BiwakoRose Town

100

Uzumasa
Tenjingawa

Arashiyama

Kitano-Hakubaicho
Demachiyanagi

Eizan Ropeway

Sakamoto Cable

Shijo-Omiya
Keifuku train

Sanjo

Lake Biwa

Sakamoto

Subway Tozai Line

90
2012
2016
FY2013 FY2017

Eizan Cable

110

Yase-Hieizanguchi

Takaragaike

120

Misasagi

Hamaotsu

Gion-shijo

Kyoto Tower and Kyoto Tower Hotel

Keihan trains (Otsu Line)

Eizan Electric Railway
Proceeds from transporting passengers

Michigan
Biwako Hotel

Shichijo
Hotel Keihan Kyoto Grande

Ishiyamadera

Kyoto Century Hotel
Tambabashi
Chushojima

Keifuku Electric Railroad
Proceeds from transporting passengers

Change in Average Daily Rate (ADR) in hotels near Kyoto Station

Uji

Number of visitors to Kyoto Tower

200

110

105

Kyoto Century Hotel
京都ｾﾝﾁｭﾘｰﾎﾃﾙ

180

Hotel Keihan Kyoto Grande
ﾎﾃﾙ京阪京都ｸﾞﾗﾝﾃﾞ

160

Kyoto Tower Hotel
京都ﾀﾜｰﾎﾃﾙ

140

Kyoto Tower Hotel Annex
京都ﾀﾜｰﾎﾃﾙｱﾈｯｸｽ

100

160
140

100
80

100

2012 FY2017
2016
FY2013

100

120

120

90

Keihan Electric Railway
Proceeds from transporting passengers

2012
FY20132013
FY20142014
FY20152015
FY20162016
FY2017212012
FY20132016
FY201795
FY20132012

FY20172016

Main Strategy

Achieve new growth through the creation of sightseeing opportunities
Enhance tourism business in places such as areas around Kyoto
StationFull renewal of commercial facilities in Kyoto Tower Building
Renewed the floor design to make it more suitable for a global base thatwelcomes domestic and overseas tourists as well as local customers. The
shops range from classic souvenir shops to well-established local storeswaiting to be discovered.
Name:
Opening date:
Number of shops:
Floor structure:

KYOTO TOWER SANDO
April 14, 2017
55
First basement floor Food hallFirst floor Kyoto’s souvenir shops
Second floor Participation-type workshops

Opening of a special inari zushi shop in Fushimi-inari Station
Offering traditional, Kyoto-style inari zushi, the shop aims to become a new
specialty shop of Fushimi-inari, a popular spot for inbound tourists. It plansto open more shops in major terminal stations mainly alongside the Keihan
railway lines.
Name:
Opening date:

Fushimi Inari Senbon Inari
April 5, 201722

Main Strategy

Achieve new growth through the creation of sightseeing opportunities
Commercial facility of Kyoto
Tower Building
KYOTO TOWER SANDO

Full renovation of Kyoto Tower Hotel Annex
Fully renovated guest rooms to create a comfortable andfunctional space with the aim of differentiating the hotel
from other existing hotels. A lounge bar is located on thefirst floor where guests can relax as if they were in theirown lounge.

Observation
Deck

Sky Lounge“KUU”

・Opening date:
March 23, 2017
・Number of guest rooms: 126 (123 before
renovation)

10th floor Beer Garden
5th to 9th floors
Guest rooms of Kyoto Tower Hotel
Banquet halls/meeting rooms
4th floors Offices and others

Yase-Hieizanguchi

5th floors Kansai Tourist Information
Center Kyoto, kimono rental shop,
restaurants, and others
1st basement floor to 2nd floor Fully
upgraded as KYOTO TOWER SANDO

Create a compact hotel in a facility directly
connected to Arashiyama Station

3rd basement floor Public bath house

Introduce a compact hotel, First Cabin, in Arashiyama
Station’s Hannari Hokkori Square. Mainly targeting
female tourists, most of the rooms are for exclusive use
by female guests.
Hamaotsu

・Opening date:
March 2018 (scheduled)・Number of cabins: 90 to 100 (scheduled)

Kyoto Tower
Kyoto Tower Hotel Annex

Hotel Keihan Kyoto
GrandeNew hotel project in front of Kyoto Station
Start building works for the development of a flagshiphotel of the Keihan Group to cater to the global market.

Arashiyama Station Hannari
Hokkori SquareFirst Cabin Kyoto-Arashiyama(provisional name)・Opening: FY2019 (scheduled)23

New hotel project in front of Kyoto Station
Kyoto Dai-ni Tower Hotel (closed)
Kyoto Century Hotel

Fushimi-inari
StationSenbon InariMain Strategy

Revitalize the areas along the Keihan Railway lines—
efforts to redesign the areas along the Keihan Railway lines
Redevelopment of Hirakatashi Station and its
surrounding areas• With a focus on improving the “value of living” in the areas
along the Keihan Railway lines centered on Hirakatashi
Station, we will redesign and revitalize the areas byimplementing a strategy that integrates hardware andsoftware.

■Profile of Hirakata City
Kyoto Prefecture
Kyoto City
Hyogo
Prefecture
Hirakata City

Shiga
Prefecture• Population: 404,963 (as of December 2016)• Great medical system as a healthy medical care city
• Has a cluster of administrative organs for northern
Osaka areas• Five universities located in the city
• Became a core city in 2014

■ Profile of Hirakatashi Station
Osaka City

• As the highest priority project, we will revitalize Hirakatashi
Station, which is the largest station between Kyoto andOsaka, and make it a station capable of serving as thegateway to a core city. In addition, we will actively makeproposals on and participate in the scheduled redevelopmentof the areas surrounding the station promoted by Hirakata
City.

Osaka
Prefecture

Nara
Prefecture• Number of passengers using Hirakatashi Station eachday: 93,369 (third-largest number among all stations
on the Keihan lines)• Approximately 15 minutes to Kyobashi, Osaka• Approximately 27 minutes to Gion-shijo, Kyoto
To Demachiyanagi

Hirakata City Mecena
Hirakata Hall
Kansai Medical University

Concentrate urban functions on a site adjacent tothe station

Kansai Medical
University Hospital

Delta
land

• Neatly concentrate urban functions at a sitesurrounded by the Keihan Main Line and Keihan
Katano Line.
• Create a hybrid and convenient facility directly
connected to a station to promote the prompt
implementation of community building.

Hirakata City Hall/
Main Building and Annex
To Yodoyabashi/Nakanoshima

Osaka Prefecture Hirakata Police Station
To Kisaichi• Play a part in creating an attractive community andrevitalize the areas surrounding Hirakatashi Station.

Hirakata Tax Office

24

Center for Osaka
Prefecture Residents

Main Strategy

Create contents to enhance the “value of living”◆ Create contents under the theme “BIOSTYLE”
Start the construction of a commercial complex in
Shijo-Kawaramachi, Kyoto• Address:

Inaricho (Kawaramachi-dori Shijo Sagaru),
Shimogyo-ku, Kyoto City
• Scheduled to open in: Spring 2019
• Building size: Nine above-ground floors; total floor area of 27, 337
square meters
1st to 2nd floors: Eat Zone (e.g., marché, restaurants)
3rd floor: Care Zone (e.g., spa, cosmetics)
4th to 9th floors: Stay Zone (a hotel with approx. 170 guest rooms)

Facility’s facade (image)

Activities to spread BIOSTYLE[Outdoor event focusing on foods in the BIOSTYLE: marché’s BIO-ICHI (market) in front of Sanjo
Station—delicious market for the soul and body]• First market:• Second market:

November 5, 2016 Theme: Bistro
Number of participating vendors: Approx. 30
March 25, 2017 Theme: cafe
Number of participating vendors: Approx. 20

Future development (plan)[Entry to new businesses]• Consider directly operating a beauty salon business• Consider independently developing, manufacturing, and selling organic skincare, hair care, and body care products, soaps, and the like• Plan to expand content creation starting from Shijo-Kawaramachi

25

Strengthen the Management Foundation

Continuous measures to revitalize railway transportation toward regaining
the glory of railway transportation◆ Introduction of Premium Cars with reserved seats to limited
express trains
Convert the sixth car of each of ten eight-car 8000 Keihan limited express trains into a
Premium Car. With guaranteed seats, which is great for commuting and sightseeing, thecarriage provides a high-quality moving space. With a special attendant for the carriage, wewill offer a service that is one level higher.
• Investment amount: Approx. JPY 1.6 billion
Outside of a Premium Car and attendants (image)• Start operating on: August 20, 2017 (scheduled)• Price: 400 or 500 yen* The price will differ depending on the travel distance.
A separate ticket needs to be purchased.
• Number of seats: 40• How to purchase tickets: A Premium Car ticket can be purchased
through a special website or at stations wherelimited express trains stop.
Inside of a Premium Car (image)◆ Introduction of a liner train with reserved seats only during rush hours on weekday mornings
We will introduce a liner train—a new service that guarantees every passenger a seat during
the morning rush hours.
The non-stop service to Kyobashi with reserved seats will make commuting more comfortable.
• Operation starts on: August 21, 2017 (scheduled)• Price: 300 yen *A separate ticket must be purchased.
• Number of seats: Approx. 400

How to purchase tickets: A liner ticket can be purchased through a special
website or at stations where limited express trains
stop.
Operating hours:

26

Two trains (from Hirakatashi and Kuzuha Stations)to Yodoyabashi Station during morning rush hours
on weekdays

Strengthen the Management Foundation

Continuous measures to revitalize railway transportation towardregaining the glory of railway transportation◆ Introduce sightseeing carriages on Eizan Electric
Railway

Lake Biwa

Eizan Cable/
Ropeway

Boldly expressing the mystical atmosphere of Mount Hiei andMount Kurama using the motif of ovals.

Sakamoto
Cable

Ogoto
Spa Port

Demachiyanagi
Sanjo Keihan

KuramaIshiyamaSakamoto
Line

Misasagi

Kyoto/Yase route

Sanjo

Yase-Hieizanguchi

Shichijo

Eizan Main Line

Kyoto
StationDemachiyanagi

Eiden

KeihanMain Line

Subway Tozai Line

Kurama Line

KeihanYamashina• Operation to start in: Spring 2018

Eizan train

Mount Hiei

Shiga/Lake Biwa route

Hieizan
Sakamoto

Otsu
Port

Otsu Port to Ogoto Spa Port
(Saturdays and Sundays)

KeishinLine
South Lake Route(Round trip from Otsu Port)
Ishiyamadera

TofukujiTrain for sightseeing(image)

1

2

3

4

◆ Rename four stations on the Keihan Railway Otsu Line
Promote smoother movements and transfers of customers visiting
Lake Biwa and Mount Hiei as well as local residents.
• When: Around March 2018
• Details: (1) Hamaotsu → Biwako-hamaotsu(2) Bessho → Otsu-shiyakusho-mae(3) Ojiyama → Keihan-otsukyo(4) Sakamoto → Sakamoto-hieizanguchi⇒ Aim to revitalize the sightseeing routeconnecting Kyoto, Mount Hiei and Lake Biwa.
27

Strengthen the Management Foundation

Real estate business as the engine of the group’s growth◆ Main condominiums to be sold in the term ended March 31, 2018
Property name, location, number of units for sale

Scheduled to be posted
inFine City SENRI TSUKUMODAI
March 2018
(Suita City, Osaka Prefecture: 250 units*)
Fine City HIRAKATA
March 2018
(Hirakata City, Osaka Prefecture: 203 units)
The Parkhouse Nakanoshima Tower*
March 2018
(Kita-ku, Osaka City: 894 units*)
Fine City Oji-Kamiya River & Forest
March 2018
(Adachi-ku, Tokyo: 319 units)
Fine City Higashi-Matsudo Mall & Residence
March 2018
(Matsudo City, Chiba Prefecture: 382 units*)* Joint project; the number of units is the total number of units.
The number of units and the timing of posting of the above properties may change.

Property name, location, number of units for saleFine City Yokohama Egasaki RENAI*(Tsurumi-ku, Yokohama City: 338 units*)
Fine Residence Ichigao Diasta(Aoba-ku, Yokohama City: 59 units*)
Fine City Sapporo Kotoni(Nishi-ku, Sapporo City: 84 units)
Fine City Higashi Sapporo(Shiroishi-ku, Sapporo City: 62 units)
Grand Sunriant Ropponmatsu*(Chuo-ku, Fukuoka City: 52 units*)

Fine City SENRI TSUKUMODAI

Fine City Yokohama Egasaki RENAI

28

Scheduled to be posted
inMarch 2018
March 2018
March 2018
March 2018
March 2018

Strengthen the Management Foundation

Real estate business as the engine of the group’s growth◆ Development and block leasing of a commercial
building in Tokyo
Develop a commercial building on land owned by Keihan Real EstateCo., Ltd. in Kyobashi 2-chome, Chuo-ku, Tokyo and lease the entire
building to First Cabin, a compact hotel chain.
Tenant: First Cabin Kyobashi
Address: 7-8 Kyobashi 2-chome, Chuo-ku, Tokyo

Natural
LawsonMizuhoBank

Audi

KYOBASHIEDOGRANDKajibashi Street

Exit

Sumitomo Mitsui
Banking Corporation

Exit

Takaracho Station

Kyobashi Station

FamilyMart

Exit

UFJ Bank
Exit

Ginza-itchome Station• Opening: April 2017
• Building size: Nine above-ground floors• Number of cabins: 238

29

Hatchobori Station

Meijiya

Nishi-Nippon
City Bank

Showa Street

Chuo Street

Yaesu Street
Yaesu underground
shopping mall
Exit

Sotobori Street

Tokyo Station
Yaesu Central Gate

Nihombashi Station

Strengthen the Management Foundation

Retail distribution business to enhance the value of “community” and “living”◆ Upgrade of Keihan Mall

◆ Situation of the business operations of cafe co.

Upgrade of a shopping mall directly linked to Kyobashi Station, the largest
terminal of the Keihan Electric Railway lines.
The concept is to create a shopping mall that can satisfy customers who spend
only 30 minutes there as distinct from the Kita and Minami districts.
* No. 1 in number of users (approximately 170,000 users per day (2015))
Combined with the JR and Osaka Municipal Subway lines, approximately
470,000 people use Kyobashi Station.
Opening date: March 17, 2017
Number of stores: Approx. 170 (including “K Buratto” and “KiKi Kyobashi”)(which became a subsidiary in December 2016)
Participate in the upgrading and opening of the group’s commercial
facilities and contribute to the supply of new contents for the“revitalization of the areas alongside the Keihan railway lines” andthe “creation of sightseeing opportunities” utilizing its strength
which is their design skills.
Keihan Mall (March)
KYOTO TOWER SANDO (April)
Fushimi Inari Senbon Inari (April)
In addition, open more shops alongside the Keihan railway lines andelsewhere in the directly operated food service business.
<Alongside the Keihan railway lines>
March: Three stores in total including stores in Keihan Mall and
Keihan Temmabashi Panante
May: One store in Keihan City Mall
<Elsewhere>
April: One store in Yokohama Bay Quarter“BROWN BAKERY/CAFE/BAR” (Keihan Mall)
Further promote the development of new business styles and the
expansion of business combining management resources of the
Keihan Group.

30

Strengthen the Management Foundation

Retail distribution business to enhance the value of “community” and “living”◆ Further improve the quality of in-station shopping business
Upgrade of Keihan Temmabashi Panante, a commercial
facility within Keihan Temmabashi Station
An array of restaurants and cafés focusing on tastes and cost performance are on
offer near Temmabashi Station, which is close to Osaka Castle, and the number ofwhose users has been increasing in recent years.
• Opening date: March 21, 2017
• Number of shops: 17

Other new shop openings[MUJIcom] Opening of CRYSTA Nagahori Store (February 2)
SWEETS BOX Shapo Funabashi Store (April 26)

Keihan Temmabashi Panante◆ Opening of a new supermarket store, FREST
Nagao Store
Open a new supermarket store in an area with many families and a growing
population to offer safe, secure, high-quality and fresh products. This is thesecond FREST store—following the FREST Matsui-Yamate store—to beopened in an area outside the areas along the Keihan railway lines. We will
endeavor to expand the supermarket chain in the areas along the Keihan
railway lines as well as their surrounding areas.
・Opening date: March 24, 2017
・Address: Nagao Motomachi 2-chome, Hirakata City, Osaka(Five minutes on foot from JR Gakkentoshi Line Nagao Station)

31

FREST Nagao StoreStrengthen the Management Foundation

Hotel and leisure businesses to create sightseeing opportunities◆ Increase hotel openings
Opening of Hotel Keihan Yodoyabashi
Accommodation-only hotel in an excellent location withgood access to major spots in Osaka City and direct train
routes to tourist spots such as Osaka Castle and Kyoto.
The booking situation is strong.
• Opening date: July 28, 2017
• Address: 4-6 Kitahama 2-chome, Chuo-ku, Osaka City
• Size: Eleven above-ground floors; 210 rooms

Other scheduled opening• Hotel Keihan Tsukiji Ginza Grande (provisional name)(scheduled to open in autumn 2018)• In addition, we will work on opening hotels near stations inmajor government ordinance cities.

◆ Improvement to existing hotels in terms of both softwareand hardware
In Biwako Hotel, the upgrading of guest rooms, which has received
very positive responses, is continuing to further improve its earnings
power.
Other renovations planned for the existing hotels were completed.

Progress of guest room upgrades in Biwako Hotel
Luxury Floor Aqua

• Completed 11th and 12th floors: Luxury Floor Aqua
7th through 10th floors: Deluxe Floor Lumina• To be started 6th floor: 21 rooms (from June 2017)

32

Deluxe Floor Lumina

Progress Status of Major Strategic Investment Projects
Medium-Term Management Plan
“Bravely Pursuing Creation”

FY2016FY2017Main Strategies
Strengthen the Management Foundation

Upgrade of Kyoto Tower
Revitalization of areas along
the Keihan railway lines

Redevelopment of Hirakatashi Station andsurrounding areas

Contents creation

Development of a BIOSTYLE, a commercial
complex in Shijo-Kawaramachi

Transportation

Premium cars

Toranomon 1-chome district Type -1
Urban Area Redevelopment ProjectFirst Cabin Kyobashi
Shin-Naniwa Daishokudo food hall in Shin-Osaka

Retail distribution
Upgrading of Keihan Mall

Leisure and service

Opening of a tourist information office (June 2015)
Opening of KYOTO TOWER SANDO(April 2017)
Participation in the Hirakatashi Station area
revitalization council
Conclusion of a triparty agreement (October 2016)
Construction
starts (2017)

Scheduled opening(spring 2019)

Scheduled launch(August 2017)

Keihan Yodo Logistics Yard
Real estate

FY2019Construction Scheduled opening
starts (2017)(FY2019)

New hotel in the area in front of Kyoto Station
Creation of sightseeing
opportunities

FY2018New openings and upgrades of hotels

33

Opening(April 2016)
Works start (FY2017)

Scheduled opening(FY2020)

Opening(April 2017)
Opening(March 2016)
Upgrading of Keihan Mall (March 2017)
Upgrading of Kyoto Century Hotel (March 2016)
Upgrading of Hotel Keihan Kyoto (March 2016)
Upgrading of Kyoto Tower Hotel Annex(March 2017)
Scheduled opening of Yodoyabashi(July 2017)
Scheduled opening of Tsukiji Ginza Grande(autumn 2018)

(Reference) Notice on Governance and Shares◆ Transition to a Company with a Supervisory Committee[Purpose of Transition]• Achieve speedier decision-making by delegating a significant portion of decision-making concerning
important business execution to directors.
• Further improve the effectiveness of audits and supervision by giving the director responsible for auditing
and so forth a vote at the Board of Directors.
⇒ The further enhancement of our corporate governance structure will result in the sustainable growth of thegroup and improvement of our corporate value.

[Timing of Transition]• After the 95th Annual General Meeting of Shareholders scheduled in June 2017 (on the condition that thetransition is approved by the General Meeting of Shareholders)◆ Change to the minimum trading unit and consolidation of shares[Overview]• Transition the minimum trading unit of common shares from 1,000 shares to 100 shares pursuant to the“Action Plan for Consolidating Trading Unit” stipulated by stock exchanges throughout Japan.
• At the same time, consolidate shares in the ratio of 5 to 1 to adjust the investment unit to an appropriate level.

[Effective date]• October 1, 2017 (on the condition that this is approved by the 95th Annual General Meeting of Shareholders
scheduled in June 2017)34