First Half of FY2017(Ended September 30, 2016)

Financial Results Presentation

November 9, 2016
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 fromthese forecasts.

Overview of the First Half of FY2017
Financial Results

Consolidated Statements of Income
Overview of the First Halfof FY2017(year-on-yearcomparison)◆

Both revenue and profits declined despite the strong passenger revenue of Keihan Electric Railway Co., Ltd. in the transportation
business. The weaker revenue and profits were attributable to factors such as a decline in the number of units sold in the real estatebusiness compared to the same term of the previous year, when a large condominium buildings was delivered.
(Millions of yen)

Operating revenue
Operating income

1H FY2016
Results

1H FY2017
Results

143,269

141,157

ChangeMain factors of changes-2,111(-1.5%)-758(-4.2%)

140,300
Refer to Segment Information.

18,075

17,316

905

891

-13

2,760

1,904

-856

16,22016,30383(0.5%)

5,457

1,162

-4,295Gain on bargain purchase -4,709

2,571

547

-2,023

Loss on step acquisition -2,119

13,356

12,046-1,310(-9.8%)

Depreciation

8,498

8,861

363

EBITDA

26,573

26,177-395(-1.5%)

Non-operating
incomeNon-operating
expenses
Ordinary income
Extraordinary
incomeExtraordinary
lossesProfit attributable toowners of parent

1H FY2017(projections
released in
April)

14,300Change857(0.6%)
3,016(21.1%)

13,1003,203(24.5%)

8,800

3,246
(36.9%)※EBITDA: Operating income +Depreciation

Number of consolidated subsidiaries: 41 (comparison with previous half term: － ), Number of equity method affiliates: 1 (comparison with previous half term: － )2

Segment Information◆ Both revenue and profits grew for the transportation business and others, while the retail businessrecorded lower revenue and higher profits. Revenue and profits both declined for the real estatebusiness and the leisure and service business.
(Millions of yen)

1H FY2017
Results

1 H FY2016
Results

Change (%)

ChangeTotal operating revenue

143,269

141,157-2,111-1.5%

Total operating income

18,075

17,316

-758

-4.2%

Operating revenue

46,93747,356418

0.9%

Operating income

6,518

6,541

23

0.4%

Operating revenue

38,80537,391-1,414-3.6%

Operating income

7,333

6,422

-911

-12.4%

Operating revenue

47,73647,711-24-0.1%

Operating income

1,057

1,058

1

0.1%

Operating revenue

16,186

15,949

-237

-1.5%

Operating income

3,146

2,935

-211

-6.7%

Operating revenue

868

906

38

4.4%

Operating income

4

67

63

－

Operating revenue-7,265-8,157-892－

Operating income

14

291

276

－

Transportation

Real estate

RetailLeisure andservice
OthersAdjustments※“Adjustments” represents elimination between inter-segment transactions and profit (loss) of the Company notallocated to any reportable segment.

3

Segment Information (Breakdown)[Consolidated subsidiaries] 42 companies [Equity method affiliates] 1 company
Transportation
Real estate

Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd. and 13 othercompanies
Keihan Holdings Co., Ltd., Keihan Dentetsu Real Estate Co. Ltd., Keihan Building Co., Ltd., Keihan AssetManagement Co., Ltd. and 6 other companies

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

Leisure and service

Hotel Keihan Co., Ltd., Kyoto Tower Co., Ltd., Kyoto Century Hotel Co., Ltd., Biwako Kisen Steamship Co.,
Ltd. and 6 other companies

OthersKeihan Card Co., Ltd.
<Operating revenue by segment><Operating income by segment>

Others
JPY0.9 billion (0.6%)

Others
JPY0.0 billion (0.4%)
Leisure and service

Leisure andservice
JPY15.9 billion(10.7%)

Transportation
JPY47.3 billion(31.7%)

JPY2.9 billion(17.3%)
Transportation
Retail
JPY1.0 billion(6.2%)

RetailReal estate

Real estate

JPY47.7 billion(32.0%)JPY37.3 billion(25.0%)

JPY6.4 billion(37.7%)

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

4

JPY6.5 billion(38.4%)

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 buses and regular sightseeing bus services resulting from businessdownsizing. However, profits grew thanks to factors such as falls in fuel, oil and fat expenses.
(Millions of yen)

Operating revenue

Operating income

1 H FY2016
Results

1H FY2017
Results

ChangeChange(%)

1 H FY2016
Results

1H FY2017
Results

ChangeChange(%)

Railway

38,59738,914

316

0.8%

5,619

5,588

-31

-0.6%

Bus

13,507

13,486

-20

-0.2%

880

938

57

6.6%

Elimination-5,167-5,045

122

－

17

14

-2

－

Transportation total

46,93747,356

418

0.9%

6,518

6,541

23

0.4%

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

Passenger transportation revenue (Millions of yen)

1 H FY2016
Results

1H FY2017
Results

ChangeChange(%)

1 H FY2016
Results

1H FY2017
Results

ChangeChange(%)

Non-commuter
passes74,25275,2941,042

1.4

17,183

17,387204

1.2

Commuter passes

71,377

72,126

748

1.0

8,201

8,288

86

1.1

Total

145,630

147,421

1,791

1.2

25,38425,675291

1.1* Major factors affecting passenger revenue (estimates)
Increase in the number of tourists to the Kyoto area (+JPY147 million); increase in the number of passengers using Hirakatashi Station (+JPY79 million); increase in thenumber of passengers using the Nakanoshima Line (+JPY40 million)

5

Segment Information (Real Estate)◆ Real estate sales businessDespite the sale of The Kyoto Residence Okazaki, The Osaka Residence Bingomachi, The Residence Higashi-Mikuni and otherapartment units, the number of units sold shrank compared to the high number recorded in the same term of the previous year when
The Kyoto Residence Shijo-Kawaramachi was sold. As a result, both revenue and profits declined.
◆ Real estate leasing business
Both revenue and profits grew thanks to factors such as the full-year contribution of Keihan Building, which became a consolidated
subsidiary in the same term of 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 AssetManagement and the commencement of its operations.
(Millions of yen)

Operating revenue

Operating income

1 H FY2016
Results

1H FY2017
Results

ChangeChange(%)

1 H FY2016
Results

1H FY2017
Results

ChangeChange(%)

32,31531,306-1,009

-3.1%

7,569

6,662

-906

-12.0%

Real estate sales

22,347

19,053-3,293-14.7%

3,097

1,568

-1,528-49.3%

Real estateleasing service

8,607

10,395

1,787

20.8%

4,364

4,784

419

9.6%

Other businesses

1,360

1,857

496

36.5%

107

309

201

187.1%

Construction

8,049

8,124

75

0.9%

-322

-249

73

－

Elimination-1,559-2,039

-480

－

86

8

-77

－

Real estate total

38,80537,391-1,414

-3.6%

7,333

6,422

-911

-12.4%

Real estate6

Segment Information (Retail)◆ Department stores
Revenue shrank due to factors such as the opening of a competitor in the neighborhood and poor sales of daily food items andwomen’s clothing. However, the amount of operating loss was reduced 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 the opening of the SWEETS
BOX Seibu Ikebukuro 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 as a reaction to the closing of the Hirakata Station Mall in the same term of the previous year due
to renovations.
(Millions of yen)

Operating revenue

Operating income

1 H FY2016
Results

1H FY2017
Results

ChangeChange(%)

1 H FY2016
Results

1H FY2017
Results

ChangeChange(%)

Department store

23,771

23,295

-475

-2.0%

-285

-242

43

－

Store

13,73014,386

655

4.8%

559

440

-118

-21.3%

Shopping mall
management

6,850

6,896

45

0.7%

725

856

130

18.0%

Others

4,674

4,548

-125

-2.7%

86

28

-58

-67.0%

Elimination-1,290-1,414

-124

－

-29

-25

3

－

Retail total

47,73647,711

-24

-0.1%

1,057

1,058

1

0.1%

Moriguchi Store

Hirakata Store

Kyobashi Store

Kuzuha Store

Suminodo Store

1H FY2017 Results

9,947

3,163

3,297

4,426

2,162

1 H FY2016 Results

10,769

2,051

3,390

4,901

2,386

Change

-822

1,112

-92

-475

-224

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

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

7Segment Information (Leisure & Service)◆ Hotel business
Some hotels, including Kyoto Century Hotel and Hotel Keihan Kyoto, underwent renovation, which improved guest rooms and had apositive impact. Overall, however, both revenue and profits decreased due to the large impact of the closure of Kyoto Dai-ni Tower
Hotel.
* Kyoto Tower, Biwako Hotel and Kyoto Century Hotel were merged on October 1, 2016, and renamed as Keihan Hotels & Resorts.
(Millions of yen)

1 H FY2016
Results
13,935
2,358
-107

Hotel
LeisureElimination
Leisure & Service
total

16,186

Operating revenue
1H FY2017
ChangeResults
13,756
-178
2,283
-75
-90
17

Change
(%)
-1.3%
-3.2%
－

1 H FY2016
Results
2,913
336
-103

-237

-1.5%

3,146

15,949Operating income
1H FY2017
ChangeResults
2,685
-227
295
-41
-45
57
2,935

-211

Change(%)-7.8%-12.3%－-6.7%<< Hotel occupancy rates >>Hotel Keihan
Temmabashi

Kyoto

Universal Tower

Universal City

Kyobashi

SapporoAsakusa

1H FY2017 Results

96.0%

96.8%

93.0%

95.3%

97.5%

97.6%

96.9%

1 H FY2016 Results

85.9%

98.2%

96.7%

98.2%

97.4%

94.9%

96.7%

Change(Reference)
Number of rooms

10.1pt-1.4pt-3.7pt-2.9pt

0.1pt

2.7pt

0.2pt

315

312

641

330

214

200

178

Kyoto Tower
Biwako Hotel
1H FY2017 Results

Kyoto Tower
Hotel

80.8%

97.4%

1 H FY2016 Results

91.7%

Change(Reference)
Number of rooms-10.9pt
171

Kyoto Dai-ni
Tower Hotel

Kyoto Tower
Hotel Annex

Kyoto Century
Hotel

98.1%

94.3%

96.2%

－%
98.0%

98.3%

74.9%

1.2pt

－pt

-0.2pt19.4pt

162

－

122

219

* Biwako Hotel and Hotel Keihan Universal Tower renovated their guest rooms. Kyoto Dai-ni Tower Hotel was closed as of January 12, 2016.

8

Consolidated Balance Sheets(Millions of yen)

FY2016
Results

1H FY2017
Results

ChangeMain factors of changes

Current assets

168,510

156,685-11,824

Cash and deposit
Notes and accounts receivable
Land and buildings for sale

-10,090-5,246+5,842

Non-current assets

501,822509,561

7,738

Property, plant and equipment
Deferred tax assets+1,748+5,025670,333

666,247-4,085Current liabilities

152,337

127,476-24,860

Current portion of bonds
Accounts payable-10,128-9,448Long-term liabilities

326,204

344,01117,806

Bonds
Deferred tax liabilities+9,967+3,544

Total liabilities

478,542

471,488-7,054

Net assets

191,790

194,7592,968

Retained earnings
Treasury shares* Equity capital ratio+10,420-4,365
28.8%(＋0.6pt)

Total liabilities and net assets

670,333

666,247-4,085Interest-bearing debt at endof fiscal period

325,714321,042-4,671

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

9

Short-term bonds
Loans payable
Bonds-3,500-1,010-160

Consolidated Statements of Cash Flows(Millions of yen)

1 H FY2016
Results

1H FY2017
Results

Operating cash flows

10,99010,717-273

Investing cash flows-9,583-13,831-4,248

Increase in expenses due to purchase ofnon-current assets

703

Decrease in expenses due to repayment
of interest-bearing liabilities
Increase in expenses due to purchase oftreasury shares

Financing cash flows-12,028-11,325

ChangeMain factors of changes

Net increase (decrease) in cash andcash equivalents-10,621-14,439-3,818Cash and cash equivalents at beginningof interim 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 ofinterim period

15,935

14,933-1,00210

Decrease in notes and accounts receivable-trade -6,900
Decrease in other current liabilities+5,932-3,322+4,936-4,335

FY2017 Forecasts

Consolidated Statement of Income(Performance Forecast)
Overview of full-year
performance forecasts for
FY 2017 (compared withthe forecasts released in
April 2016)◆ The retail business is projected to have weak results, including poor results anticipated for department
stores. On the other hand, the real estate business is expected to sell a larger number of apartment units
than initially projected. In addition, the transportation business is projected to have steady results. As aresult, performance forecasts are revised upward from the forecasts released in April.
◆ Operating revenue and profit attributable to owners of parent are expected to be the second highest level
following the FY ended in March 2016.
(Millions of yen)

FY2017 fullyear forecasts
released inApril

New FY2017
full-year
forecasts

Operating revenue

299,500

300,000500

0.2%

300,188

-188

-0.1%

Operating income

26,60029,300

2,700

10.2%

31,524-2,224-7.1%

Ordinary income

24,50027,400

2,900

11.8%

28,461-1,061-3.7%

Profit attributable to ownersof parent

16,50020,000

3,500

21.2%

22,385-2,385-10.7%

Capital expenditure

46,60045,300-1,300-2.8%

31,39813,901

44.3%

Depreciation

18,40018,300

-100

-0.5%

17,571

728

4.1%

EBITDA

45,00047,600

2,600

5.8%

49,095-1,495-3.0%

Interest-bearing debt

354,000

334,100-19,900-5.6%

325,714

8,385

2.6%

Interest-bearing debt/
EBITDA multiple (Times)

7.87

7.02

-0.85

－

6.63

0.39

－

Net interest-bearing debt/
EBITDA multiple (Times)

7.31

6.70

-0.61

－

6.12

0.58

－

Change12

Change(%)

FY2016
Results

ChangeChange(%)

Segment Information(Performance Forecasts)■ Operating Revenue/Operating Income
FY2017 fullNew FY2017
year forecasts
full-year
released inforecasts
April(Millions of yen)

ChangeMain factors of changes

FY2016
Results

ChangeTotal operating revenue

299,500

300,000

500

300,188-188

Total operating income

26,60029,3002,700

31,524-2,224

Operating revenue

93,40093,900500

93,562

337

Operating income

7,600

8,500

900

・Increase in maintenance orders received forbuses and trucks in the bus business・Fall in power expenses in the railway
business

10,193-1,693Operating revenue

85,00090,3005,300

89,033

1,266

Operating income

12,40013,7001,300

・Increase in the number of apartment
units sold in the real estate sales
business

13,882-182

Operating revenue

105,100

99,800-5,30098,875924

Operating income

3,200

2,800

-400

・Weak sales of daily food items andwomen’s clothing items in department
stores2,826-26Operating revenue

30,80030,600-200

31,813-1,213Operating income

3,800

4,300

500

4,599

-299

Operating revenue

1,800

1,800

－

1,755

44

Operating income

0

0

－

-12

12

Operating revenue-16,600-16,400

200-14,852-1,547

Operating income

-400

0

400

34

-34

Transportation
Real estate

RetailLeisure andservice・Poor performance of two Universal
hotels in the hotel business・Decrease in expenses due to costsaving efforts

OthersAdjustments※“Adjustments” represents elimination between inter-segment transactions and profit (loss) of the Company not allocated to any reportable segment.

13

Segment Information(Performance Forecasts)■ Capital Expenditure(Millions of yen)

FY2017 full-year New FY2017
forecasts
full-year
released in April
forecasts
Transportation
Real estate
RetailLeisure and service
OthersAdministration of entire
company and others
Elimination
Total capital expenditure

ChangeFY2016
Results

Change13,700
5,200
3,400
2,200
0

16,600
9,700
3,100
2,200
0

2,900
4,500
-300
－
－

12,74913,392
1,609
3,924
120

3,850
-3,692
1,490-1,724-120

22,10013,700-8,400－13,700－46,600－45,300－-1,300-398
31,398398
13,901■ EBITDA(Millions of yen)

FY2017 full-year New FY2017
full-year
forecasts
forecasts
released in April
Transportation
Real estate
RetailLeisure and service
OthersAdjustments
Total EBITDA

18,40017,100
4,600
5,100
0
-200
45,00019,40018,500
4,100
5,400
0
200
47,600Change
1,000
1,400
-500
300
－
400
2,600

FY2016
Results

Change20,982
18,216
4,111
5,745
5
34
49,095※“Adjustments” represents elimination between inter-segment transactions and profit (loss) of the Company notallocated to any reportable segment.

14-1,582
283
-11
-345
-5
165
-1,495Operating Results for Transportation(Performance Forecasts)<< Forecast of operating results for transportation (Keihan Electric Railway) >>■ Number of passengers
FY2017 fullyear forecasts
released inApril

New FY2017
full-year
forecasts

Change(Thousands ofpeople)(Thousands ofpeople)(Thousands ofpeople)Non-commuter
passes149,758

150,039

Commuter passes

140,754

Total

290,512FY2016
Results

Change％(Thousands ofpeople)(Thousands ofpeople)

％

281

0.2

149,616422

0.3

139,981

-773

-0.5

138,757

1,223

0.9

290,020

-492

-0.2

288,374

1,645

0.6

Change (%)

Change (%)■ Passenger transportation revenue
FY2017 fullyear forecasts
released inApril

New FY2017
full-year
forecasts(Millions ofyen)(Millions ofyen)(Millions ofyen)

Non-commuter
passes34,65434,728Commuter passes

16,321

Total

50,975FY2016
Results

Change％(Millions ofyen)(Millions of
yen)

％

74

0.2

34,615112

0.3

16,272-49-0.3

16,115156

1.0

51,00025

0.0

50,731268

0.5

ChangeChange (%)

15

Change (%)

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 the group’s
growthCreate contents to enhance the “value of living”

Retail business to enhance the value of“community” and “living”

Establish a “steadfast group management”
style
Transition to a holding company system(April 1, 2016)

Hotel and leisure businesses to createsightseeing opportunities

17Impact of Inbound Travelers and Measures toCapture Business Opportunities (1)◆ Transportation■ Keihan Electric Railway: Projected to increase revenue for the fourth consecutive term(Millions ofyen)

51,500

Proceeds from transporting
passengers- Major factors→ Increase in the number of tourists to the Kyoto area
Increase in the number of passengers using Fushimi-Inari Station(Increase in the number of visitors to Fushimi Inari Taisha Shrine)

51,00050,500

Sales of special tickets

50,000

Sales of the Kyoto-Osaka Sightseeing Pass and the
Kyoto Sightseeing Pass, which were launched inAugust 2015, are increasing. We will launch an
Osaka Municipal Transportation Bureau version of
special pass on October 1, which can also be used
for the Keihan area.

49,50049,00048,500FY20132012

FY20142013

FY20152014

FY20162015

FY20172016（予想）(Forecast)■ Eizan Electric Railway Co., Ltd.
•

■ Keifuku Electric Railroad Co., Ltd.
•

Proceeds from transporting passengers: up 13.8%.
(For 1H FY2017 compared to 1H FY2013)

Proceeds from transporting passengers: up 7.8%.
(For 1H FY2017 compared to 1H FY2013)◆ Overseas Promotion•••

Seven member companies of the Keihan Group participated in the VISIT JAPAN EAST ASIA Travel Mart 2016 (from June 21 to 22,2016), organized by the Japan National Tourism Organization (JNTO) and sponsored by the Japan Tourism Agency.
Seven member companies of the Keihan Group participated in the ALL KANSAI Business Meeting in Taiwan (Kaohsiung, Taichung, andTaipei) (September 6 to 10, 2016), organized by the Foundation for Kansai Region Promotion and sponsored by the Kinki District
Transport Bureau.
In addition to Taiwan, we are considering extending our promotion activities to China, Thailand, Hong Kong, Singapore and othercountries from which many people already visit Japan.

18Impact of Inbound Travelers and Measures toCapture Business Opportunities (2)◆ Hotel Business(Millions ofyen)Operating revenue (inbound)

25.0

3,000
2,500

Percentage of inbound travelers（％）

下期halfSecond20.0

First
上期half

2,000

15.0

1,500
10.0
1,000
5.0

500

0.0

0
2014
FY2015200

2015
FY20162012
FY20132016
FY20172013
FY20142014
FY20152015
FY2016

Changes in Average Daily Rate (ADR) of Hotels Near Kyoto Station
Kyoto Century Hotel
京都ｾﾝﾁｭﾘｰﾎﾃﾙ

180

Hotel Keihan Kyoto
ﾎﾃﾙ京阪京都160

京都ﾀﾜｰﾎﾃﾙ
Kyoto Tower Hotel
Kyoto Tower Hotel Annex
京都ﾀﾜｰﾎﾃﾙｱﾈｯｸｽ

140
120
100
FY20132012

FY20142013

FY20152014

2015
FY2016FY2017
2016

(1H)
(1H)
（第2四半期）

2012年
年on
をthe
100とした
とした場合
場合
とした
Based
FY2013figure as 100

19

FY20172016(1H)（第2四半期
四半期）
四半期）

Main Strategy: Achieve new growth through thecreation of sightseeing opportunities
Priority project: Promote the development of the area in front of Kyoto Station
as the global base for tourism
Project to open a new hotel in the area in front of
Kyoto Station

To Sanjo/Gion-Shijo

Kyoto Tower Hotel Annex
Shichijo•

Working on the project for the scheduled opening in 2018

Kyoto Tower
Kizuya-bashi Street

Karasuma Street•

Plan to develop the Keihan Group’s flagship hotel to cater to theglobal market

Shichijo Street②
Kyoto Dai-ni Tower Hotel (closed)

Shiokoji Street

Upgrade the Kyoto Tower Building commercial facility•

Full renovation for the scheduled opening in 2017 in order to ensurecompetitive advantages

Kyoto

ShinmachiStreet•

Kyoto Century Hotel

Developing a merchandising concept (MD concept) to create acommercial facility to serve as the gateway to Kyoto

Full renovation of Kyoto Tower Hotel Annex•③

Hachijo Street①
Hotel Keihan Kyoto

Kamo River

Tofukuji

Number of guest rooms: 126 (before renovation: 123)◆ Establishment of Keihan Hotels & Resorts
Kyoto Tower Co., Ltd., Biwako Hotel Co., Ltd. and Kyoto Century Hotel Co., Ltd. were merged and renamed.
In addition to strengthening the management basis and brand power, we will upgrade our operations through theconcentration of know-how and human resources to further increase our revenue and enhance the business management
functions.
We will promote the above priority measures, including a project to open a new hotel in the area in front of Kyoto
Station.

20

Main Strategy: Revitalize the areas along the Keihan

Railway lines—efforts to redesign theareas along Keihan Railway lines

Priority project: Redevelop Hirakatashi Station and its surrounding

Kyoto
PrefectureWith a focus on improving the “value of living” in the areas along the Keihan Railway lines
centered on Stations, we will redesign and revitalize the areas by implementing a strategy that
integrates hardware and software.
As the priority project, we will revitalize Hirakatashi Station, which is the largest station
between Kyoto and Osaka, and make it a station capable of serving as the gateway to a corecity. In addition, we will actively make proposals on and participate in the scheduled
redevelopment of the areas surrounding the station.

◆ Link with the redevelopment plan of the areas surrounding
the station promoted by Hirakata City
Participation in the Hirakatashi Station area revitalization council•

Kyoto City
Hyogo
Prefecture

Osaka
Prefecture

Nara
Prefecture

Areas to be covered in the vision for
the redevelopment of Hirakatashi
Station and its surrounding areas*

Yodo-gawa River
To Kyoto

To create a sustainable town and nurture civic pride,
Keihan Holdings Co., Ltd., Kita-Osaka Chamber ofCommerce and Industry, Hirakata City, Kansai Medical
University, Hirakata Shinkin Bank and SO-TWO Inc.
established the Hirakatashi Station area revitalization
council for the purpose of introducing area management
based on collaboration among industry, academia, thepublic sector and the private sector.

Hirakata
City

Osaka
City

To Kyoto

Shiga
Prefecture

Organize the outer
perimeter roads

Arts & cultural baseCommunity interaction baseHirakatashi Station
Base in the extensive
area in front of thestationConclusion of an agreement on mutual cooperation for prompt
implementation of the redevelopment of the areas around
Hirakatashi Station

Life support base

Legends•

Keihan Holdings Co., Ltd., Hirakata City and SO-TWO
Inc. signed an agreement for the prompt implementation of
the redevelopment of the areas around Hirakata Station
based on tripartite collaboration.

Maintenance ofa peripheral roadLine of a circular flow

Expansion of the squarein front of the station

Expansion of the squarein front of the station
Community interaction
spot* Vision for the redevelopment of the areas around Hirakatashi Station (prepared by Hirakata City in March 2013)21

Main Strategy: Create contents to enhancethe “value of living”
Priority project: Create contents under the theme “BIOSTYLE””◆ Develop a commercial complex in Shijo-Kawaramachi, Kyoto
A hub to advocate a new lifestyle, BIOSTYLE,
proposed by the Keihan Group■ Address: Inaricho (Kawaramachi-dori Shijo Sagaru), Shimogyo-ku, Kyoto City
Scheduled to open: Spring 2019
Building size: 9 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 (hotel)
Number of guest rooms: about 170

Area map of scheduled site

Stay ZoneBIO Garden & lobby floor (image)■ BIOSTYLE business concept
Propose a pleasant lifestyle that enriches the body and soulof customers with nature’s gifts and human warmth•

Aim to support customers’ lives for a long time with afocus on “things that are good for the body” and “things
that show the heart of producers and makers”
Facility exterior (image)22

Improve Business Quality and Promote theDevelopment of New Business Categories
Enhance the design function to express in concrete shapes the value that customers seek

◆ Purchase cafe co. shares
Aim to improve the quality of the Keihan Group’s services andcreate new value by utilizing designs in business management.
•Utilize the company’s design abilities in various projects promoted by
the Keihan Group, and offer superior customer experience (customer
experience value) in terms of both hardware and software.
•Diversify the source of profits that underscore sustainable growth byadding the company’s unique food services as new contents, andaccelerate the development of new business categories and businessdevelopment by combining their resources with the Keihan Group’s
management resources.

NEMU GOLF CLUB(Club house/interior design/Shima, Mie)

Overview of cafe co.
■■■Business: Design business and food services
Representative: Yoshiyuki Morii
Specializes in interior designs for cafés, restaurants, hotels, offices
and clinics. Has also designed apartment units, commercial
complexes and other buildings in recent years.
Shops: 15 directly operated shops
TABLES Coffee Bakery & Diner (Minami-Horie, Osaka), grenier
36 (Temmabashi, Osaka), shuhari dolce (Kawaramachi, Kyoto),
TRITON CAFE (Kobe, Hyogo), PARK SIDE TABLES (Kioicho,
Tokyo), and others

23

TABLES Coffee Bakery&Diner(Directly operated cafe in Minami-Horie,
Osaka)Strengthen the Management Foundation
Continuous measures to revitalize railway transportation toward regaining
the glory of railway transportation◆ Premium Cars: limited express carriages with reserved seats
Scheduled to introduce special carriages with reserved seats for 8000
Keihan limited express trains■ Guaranteed seats—great for commuting and sightseeing
Offer a service that is one level higher in a high-quality
moving space

Interior image■ Investment amount: Approximately JPY1.6 billion
Timing of introduction: First half-term of FY2018
Renovate one carriage (sixth car) in a 10-carriage train
Exterior image◆ Efforts to improve customer satisfaction (CS)[Create an Information Center in Gion-Shijo Station (April)]
Cater to the needs of domestic and overseas travelers
・In addition to the areas around
Gion-Shijo Station, theInformation Center will provide
sightseeing information on
Kyoto, Osaka, and Shiga
centered on the areas along the
Keihan railway lines to promoteuse of the railways.

24[Open courier-service lockers—Kansai’s first in-station
lockers for courier services (August)]
・Launch the service at Moriguchishi Station,
Neyagawashi Station, Hirakatashi Station andKuzuha Station. Plan to extend the service tofurther stations in the future.
・Available for parcels delivered by Yamato
Transport Co., Ltd. Plan to accept deliveries
from other courier companies in the future.

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, 2017 and thereafter
Property name, location, number of units for sale

Scheduled to be posted
inFine City Sapporo, The Tower Odori Park
March 2017
Chuo-ku, Sapporo City; 116 units
The Osaka Residence Umeda-Ogimachi Park
March 2017
Kita-ku, Osaka City; 69 units
Fine Centreo City
March 2017
Naniwa-ku, Osaka City; 142 units
The Kyoto Residence Gosho-Minami*
March 2017
Nakagyo-ku, Kyoto City; 43 units*
Fine City Koshien*
March 2017
Nishinomiya City, Hyogo Prefecture; 145 units*
Fine Residence AOBADAIMarch 2017
Yokohama City, Kanagawa Prefecture; 22 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 Oji-Kamiya River & Forest
Adachi-ku, Tokyo; 319 units
Fine City Yokohama Egasaki RENAI*
Tsurumi-ku, Yokohama City; 338 units*
Fine City HIRAKATA
Hirakata City, Osaka; 203 units
Fine City SENRI TSUKUMODAI*
Suita City, Osaka; 250 units*
The Fine Tower UMEDA TOYOSAKI*
Kita-ku, Osaka City; 312 units*
Kitahama Mid Tower*
Chuo-ku, Osaka City; 311 units*

Fine Residence AOBADAI

25

Scheduled to be posted
inMarch 2018
March 2018
March 2018
March 2018
March 2019
March 2019

Fine City HIRAKATA

Strengthen the Management Foundation
Real estate business as the engine of the group’s growth◆ Established and started operating Keihan Private REIT Inc., the first private REIT
affiliated with a railway company
Aim to expand the cyclical real estate business (investment → retention → sales → re-investment) to match the development ofproperties within and outside the Keihan railway line areas in order to maximize the Group’s corporate value and increase its fee
businesses, such as the asset management business and the property management business, which arise from the REIT.
• Established: April 6, 2016
• Started operation: June 30, 2016
• Assets under management (at the start of operations): Approximately JPY22.6 billion• Investment targets: Office buildings, commercial facilities, residential facilities, hotels, physical distribution facilities, ownership ofland under a leasehold interest, and others

INTAGE Akihabara Bldg.

Mikami Building

26

Keihan Dojima Building

Strengthen the Management Foundation
Retail business to enhance the value of “community” and “living”◆ Keihan Mall Upgrade Plan

An upgrade to create a “shopping mall that can satisfy customers who spend
only 30 minutes there” as distinct from the Kita and Minami districts, and tobuild an attractive facility that offers new items and events each timecustomers visit.
To be operated as one with the neighboring “K Buratto” and “KiKi Kyobashi.”
Scheduled to open in mid-March 2017 / Number of shops in three buildings:
approximately 170◆ Plan to open a new supermarket store, “FREST
Nagao Store” (provisional name)Open a new supermarket store in an area with many families and a
growing population. This is the second FREST store—following the
FREST Matsui-Yamate store—to be opened in an area outside the areas
along the Keihan railway lines. We will endeavor to expand thesupermarket chain in the areas along the Keihan railway lines as well as
their surrounding areas.
Address: Nagao-motomachi 2-chome, Hirakata City, Osaka(*Five minutes on foot from JR Gakken Toshi Line Nagao Station)
Scheduled to open: March 201727

To Demachiyanagi

A shopping mall directly linked to Kyobashi Station, the largest terminal of the
Keihan Electric Railway lines
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.

Kyobashi Park

Sakuranomiya
Elementary School

To
Yodoyabashi/
Nakanoshima

AEON
Kyobashistore

K Buratto
Osaka Business Park

Strengthen the Management Foundation
Retail 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]■ Open new restaurants with a focus on taste and cost performance.
Panante is intended as a commercial facility that entices businesspeople working nearby, tourists and residents to visit in themorning, daytime and nighttime.
■ Scheduled to open: Mid-March 2017
Shop floor area: approximately 1,300 square meters
Number of shops: 18[Shops in Gion-Shijo Station]・an3 Gion-Shijo Store/Sizuya (July 4)・SWEETS BOX Gion-Shijo Store (July 6)
・Starbucks Coffee (August 5)◆ Other new openings and renewals[MUJI com] Opening of Namba Walk Store (May 27)[FREST] Upgrade of Neyagawa Store (October 28)[an3] Upgrade of Korien Store (November 8)
Shops in Gion-Shijo Station

28

Strengthen the Management Foundation
Hotel and leisure businesses to create sightseeing opportunities◆ Upgrade of Biwako Hotel■ Guest rooms (Deluxe Floor Lumina)•

In the last fiscal year, guest rooms on the 11th and 12th floors
were renovated to create Luxury Floor Aqua rooms. The
refurbished rooms have been performing better than planned.

•

To further capture robust accommodation demand, further
renovations were carried out ahead of the original plan. So far,66 rooms on the 8th to 10th floors have been renovated tocreate Deluxe Floor Lumina rooms. ADR is growing steadily
and sales are increasing.

•

22 rooms on the 7th floor will be renovated in January 2017.

Deluxe Floor Lumina■ Restaurants
A Japanese cuisine, OHMI, will be refurbished. In addition, a new
banquet hall, SAZANAMI, will be created within the restaurant tohost receptions in general and wedding receptions (July 15).

Biwako Hotel endeavors to improve its brand image, capitalizing
on its lake-side location and views
New banquet hall, SAZANAMI

29

Strengthen the Management Foundation
Develop brand strategy in the hotel business◆ Introduce Hotel Keihan’s new brand, Grande•••

Develop brand strategy to improve the entire
Hotel Keihan chain in terms of bothHotel Keihan
hardware and software.
Rename urban, multi-function hotels thatcater to various needs ranging from business
Hotel Keihan
Hotel Keihan
to leisure as Hotel Keihan Grande.
Kyoto Grande
Kyobashi GrandeLifestyle hotel mainly
Clarify the grade of facilities and service
for providing accommodation
standards for each brand, and finely tune
New brand, Hotel Keihan Grande
hotel software to respond to diverse customer
Business hotel with a focus
needs.
on accommodation
Hotel Keihan◆ Scheduled hotel openings
Hotel Keihan Yodoyabashi(provisional name)

Hotel Keihan Tsukiji Ginza Grande(provisional name)

Address: 2-41-1 Kitahama, Chuo-ku,
Osaka City
Scheduled to open:
Summer 2017Size:
11 above-ground floors with210 rooms (schedule)

Address: 3-507-1 Tsukiji, Chuo-ku, Tokyo
Scheduled to open:
Autumn 2018 (schedule)Size:
14 above-ground floors with 300
rooms (schedule)30

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

FY2016FY2017FY2018

Scheduled to open
(2018)New hotel in the area in front of Kyoto Station
Creation of sightseeing
opportunities

FY2019● Opening of a tourist information center (June 2015)

Main Strategy

Upgrade of Kyoto Tower● Prepare MD (FY2017)

Revitalization of areas along
the Keihan railway lines

Redevelopment of Hirakatashi Station andsurrounding areas

Contents creation

Development of BIOSTYLE, a commercial
complex in Shijo-Kawaramachi

Scheduled to open
(in spring 2019)

Completed transition(April 2016)

Transition to the holding company system

Strengthen the Management Foundation● Participation in the Hirakatashi Station
area revitalization council and signingof a tripartite agreement (October 2016)

Transportation

Keihan limited express premium car

Real estate

Keihan Yodo Logistics Yard

RetailUpgrade of Keihan Mall

Scheduled to introduce the car(in the 1H of FY2018)
Opening(April 2016)

Scheduled to open
(March 2017)● Upgrade of Kyoto Century Hotel (March 2016)● Upgrade of Hotel Keihan Kyoto (March 2016)

Leisure and service

New openings and upgrades of hotels

31● Yodoyabashi is scheduled
to open (in summer 2017)
Tsukiji Ginza is scheduled to open
(in autumn 2018) ●Comparison with Quantitative Targets(Billions of yen)

Consolidated EBITDA(Billions of yen)

Consolidated operating income

350

60
600

300

50
500

250

40
400
200

30
300
150
Plan

Forecast

Plan

Plan

10
100

Actual

20
200
Plan

Forecast

Plan

Actual

50

Plan

100

0

0

FY2016FY2017FY2016FY2018FY2017FY2018Net interest-bearing debt / EBITDA multiple
9.00

Healthy results that steadily exceed
the targets

8.00

7.00

Aim to further accumulate profitsby making it imperative to achieve
the FY2018 plan

Medium-Term Management Plan
中期経営計画

6.00

Actual/forecast
実績・予想

5.00

FY2016
2015年度FY20172016年度

2017年度FY201832