FY2019(Fiscal year ended March 31, 2019)

Financial Results Presentation
May 16, 2019
Keihan Holdings Co., Ltd.
(Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.co.jp/)

Table of ContentsOverview of FY2019 Financial Results… 2

FY2020 Forecasts… 15

Progress Status of Medium-Term Management Plan
“Create Living, Community, and Excitement”… 21◆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.
Actual results may differ due to various factors that may arise in the future.

1

Overview of FY2019

Financial Results2

Consolidated Statements of Income• Despite the impact of natural disasters, operating revenue increased due in part to sales of condominiums with large profit margins in the real estate business,reaching a record high for the seventh consecutive year. Operating income and ordinary income also grew, recording an all-time high. Profit attributable toowners of parent decreased due to a drop in gain on sales of Keihan Life Support shares, which was posted in the previous fiscal year, remaining the fourthhighest ever.
(Millions of yen)

FY2019FY2018Change3,882(1.2%)
2,257(7.2%)

Main factors of changes

Forecast for
FY 2019* Impact of natural disasters –JPY2.2 bn

322,500* Impact of natural disasters -JPY1.3 bn

31,000Operating revenue

326,159

322,276

Operating income

33,71531,458

2,016

1,971

45

3,623

3,800

−176

32,10829,6302,478(8.4%)

4,312

6,626

−2,313Gain on sale of subsidiaries and associates −3,179* Impact of natural disasters +JPY0.2 bn

4,372

2,572

1,799

* Impact of natural disasters +JPY0.9 bn

Profit attributable toowners of parent

21,48022,712−1,231(−5.4%)* Impact of natural disasters –JPY1.4 bn

Depreciation

19,81919,113706

EBITDA53,53550,571

2,963

Interest and dividend
income937854Interest expenses

2,401

Net interest expenses−1,463Non-operating
incomeNon-operating
expenses
Ordinary income
Extraordinary
incomeExtraordinary
lossesChange3,659(1.1%)
2,715(8.8%)

29,6002,508(8.5%)

21,000480(2.3%)

20,000−180

51,000

2,535

82

925

11

2,561

−160

2,402

−1

−1,707243−1,476

12* EBITDA: Operating income + Depreciation

3

Segment Information
Impact of natural disasters
Breakdown of operating revenue: Transportation -JPY0.5 bn; Retail distribution -JPY0.7 bn; Leisure and service -JPY0.9 bn
Breakdown of operating income: Transportation -JPY0.5 bn; Retail distribution -JPY0.1 bn; Leisure and service -JPY0.7 bn(Millions of yen)

FY2019Transportation

Real estate

Retaildistribution

Leisure andservice

OthersAdjustments

Operatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeFY2018ChangeChange (%)

Forecast for
FY 2019

ChangeChange (%)

93,92692,262

1,664

1.8%

92,700

1,226

1.3%

11,221

9,180

2,040

22.2%

9,800

1,421

14.5%

118,607

113,132

5,474

4.8%

115,000

3,607

3.1%

17,46815,316

2,151

14.0%

15,900

1,568

9.9%

98,727100,709−1,981−2.0%

99,600

−872

−0.9%

2,923

2,845

78

2.8%

2,900

23

0.8%

30,621

31,298

−677

−2.2%

31,400

−778

−2.5%

1,817

4,877

−3,060−62.7%

2,000

−182

−9.1%

1,843

1,824

18

1.0%

1,900

−56

−3.0%

−57

34

−92

－

0

−57

－

−17,567−16,951−615－−18,100

532

－

342

−795

1,138

－

400

−57

－

4

Segment Information (Breakdown)[Consolidated subsidiaries] 41 companies (Addition of one company year on year) [Equity-method affiliates] 2 companies (No change year on year)
Transportation

Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd., and 12 other companies

Real estate

Keihan Holdings Co., Ltd., Keihan Dentetsu Real Estate Co., Ltd., rero Corporation Co., Ltd., Keihan Building Co., Ltd.,and 8 other companies

Retail distribution

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

OthersKeihan Card Co., Ltd.

<Operating income by segment><Operating revenue by segment>
Leisure and Service
JPY30.6 billion(8.9%)

OthersJPY 1.8 billion (0.6%)

Transportation
JPY93.9 billion(27.3%)

Leisure and Service
JPY1.8 billion (5.4%)

Retail distribution
JPY 2.9 billion(8.8%)

Others
JPY-0 billion (−0.2%)

Transportation
JPY11.2 billion(33.6%)

Retail distribution
JPY 98.7 billion(28.7%)
Real estate
JPY118.6 billion(34.5%)

Real estate
JPY17.4 billion(52.4%)

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

5Segment Information (Transportation)(Millions of yen)

FY2019FY2018ChangeChange (%)

Operating revenue

93,92692,262

1,664

1.8%

Railway

76,63475,974

660

0.9%

Bus

27,62026,802817

3.1%

Elimination−10,327−10,514

186–

Operating income

11,221

9,180

2,040

22.2%

Railway

9,788

8,241

1,547

18.8%

Bus

1,393

890

502

56.4%

39

48

−8

–

Elimination(Major factors affecting performance)• The railway business saw both revenue and profits increase on the back of an increase in the number of commuter pass passengers and thefull-year contribution of Premium Cars and Liner trains at Keihan Electric Railway, as well as a drop in costs including power expense despite
the impact of service suspensions owing to natural disasters.
• The bus business saw increases in both revenue and profits due to a steady rise in the number of users of the regular routes and the KansaiInternational Airport route (limousine bus).

6

Operating Results for Transportation Keihan Electric Railway

FY2019FY2018ChangeChange (%)

Millions of yen

Millions of yen

Millions of yen%

Passenger transportation
revenue

52,054

51,820234

0.5

Non-commuter passes

35,18735,278−90−0.3Commuter passes

16,866

16,541325

2.0

Thousands of people

Thousands of people

Thousands of people%

295,099

294,409690

0.2

Non-commuter passes

149,795

151,946−2,150−1.4

Commuter passes

145,304

142,463

2,841

2.0

Number of passengers(Major factors affecting non-commuter pass passenger revenue)• Impact of natural disasters (-JPY304 million); full-year contribution of Premium Cars and Liner trains (+JPY236 million)(Major factors affecting commuter pass passenger revenue)• Improved employment situation

7

Segment Information (Real estate)(Millions of yen)

FY2019FY2018ChangeChange (%)

Operating revenue

118,607

113,132

5,474

4.8%

Real estate

100,250

93,711

6,539

7.0%

Real estate sales

74,907

69,150

5,757

8.3%

Real estate leasing service

21,826

21,042783

3.7%

Other businesses

3,516

3,518

−2

−0.1%

Construction

24,57823,966611

2.6%

Elimination−6,222−4,545−1,676–

Operating income

17,46815,316

2,151

14.0%

Real estate

16,841

14,930

1,910

12.8%

Real estate sales

6,563

5,171

1,391

26.9%

Real estate leasing service

9,900

9,304

596

6.4%

377

454

−77

−17.0%

Construction

817

604

213

35.3%

Elimination

−190

−218

27

–

Other businesses(Major factors affecting performance)•The real estate sales business saw increases in both revenue and profits due in part to sales of land for business use and robust sales ofcondominiums with large profit margins.
•The real estate leasing service saw increases in both revenue and profits due to the full-year contribution of buildings for lease that wereacquired in the previous year.
•The construction business saw increases in both revenue and profits due in part to the receipt of large-scale construction orders.

8Segment Information (Retail distribution)(Millions of yen)

FY2019FY2018ChangeChange (%)

98,727100,709−1,981−2.0%

Department store

50,88649,151

1,735

3.5%

Store

30,14332,440−2,296−7.1%

Shopping mall
management

14,78814,909

−121

−0.8%

Others

7,866

8,689

−823

−9.5%

Elimination−4,958−4,482−475–

Operating income

2,923

2,845

78

2.8%

Department store

292

157

134

85.4%

Store

730

1,038

−307

−29.6%

Shopping mall
management

1,839

1,758

81

4.6%

Others

88

−121

210

–

Elimination

−28

11

−40

–

Operating revenue(Major factors affecting performance)• Department stores saw both revenue and profits increase due to robust sales of cosmetics on the back of inbound demand.
• Stores saw both revenue and profits decrease due to the impacts from the shift to a fixed-term leasehold for some of the tenant contracts, andthe temporary closure of the FREST Matsui Yamate Store for renovation.

9

Segment Information (Leisure & Service)(Millions of yen)

FY2019FY2018ChangeChange (%)

30,621

31,298

−677

−2.2%

Hotel

26,80027,379

−578

−2.1%

Leisure

3,848

4,097

−248

−6.1%

Elimination

−27

−177

149

–

Operating income

1,817

4,877

−3,060−62.7%

Hotel

1,688

4,646

−2,958−63.7%

Leisure

107

207

−99

−48.0%

Elimination

21

23

−1

–

Operating revenue<< Hotel occupancy rates >>FY2019FY2018ChangeHotel Keihan

94.1%

96.9%

−2.8ptKeihan Hotels & Resorts* 87.6%92.1%−4.5pt* Occupancy rates excluding THE THOUSAND KYOTO, which commenced operation in January 2019, stood at 90.1%.
(Major factors affecting performance)• The hotel business saw both revenue and profits decrease due to business suspensions following natural disasters and the renovation of the
Kyoto Century Hotel, as well as a rise in expenses for opening new hotels.
• The leisure business also saw both revenue and profits decrease owing to the impact of business suspensions for the renovation of golfcourses and natural disasters.

10Consolidated Balance Sheets(Millions of yen)

FY2019FY2018ChangeMain factors of changes

Current assets

180,080

168,266

11,814

Land and buildings for sale +7,640

Non-current assets

551,669

530,519

21,150

Buildings and structures +13,987
Investment securities +1,685

731,750

698,786

32,964Current liabilities

178,310

161,600

16,710

Short-term loans payable +15,874

Long-term liabilities

314,744

313,626

1,117

Bonds +9,934, Long-term loans payable −7,861

Total liabilities

493,055475,226

17,828

Net assets

238,695

223,559

15,136

Total liabilities and net assets

731,750

698,786

32,964

Total assets

Retained earnings +17,175* Equity capital ratio 32.1% (+0.6pt)

Note: The “Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.” have been applied from the beginning of the current period, presenting
deferred tax assets under investments and other assets (non-current assets) and deferred tax liabilities under non-current liabilities. Figures for FY2018 havebeen restated after applying the partial amendments retroactively.

ROA

4.7%

4.6％

0.1pt

* ROA: Operating income to total assets

ROE

9.4%

10.8%

−1.4pt* ROE: Net income to shareholders’ equity

EBITDA53,53550,571

2,963* EBITDA: Operating income + depreciation

Interest-bearing debt at end of
fiscal period

334,346

316,399

17,946

Bonds +9,934, Loans payable +8,012

Interest-bearing debt / EBITDA
multiple (Times)

6.25

6.26

−0.01

Net interest-bearing debt /EBITDA multiple (Times)

5.85

5.85

–

11

Consolidated Statements of Cash Flows(Millions of yen)

FY2019Cash flows from operating
activities

36,473

FY201844,438ChangeMain factors of changes−7,965

Increase in inventories −15,202,
Decrease in notes andaccounts receivable-trade +6,006

Cash flows from investing
activities−48,059−32,603−15,455

Proceeds from sales of non-current assets −8,134,
Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation −2,826

Cash flows from financing
activities

12,655−9,85822,514

Proceeds from issuance of bonds +19,862

Net increase (decrease) in cash
and cash equivalents

1,069

1,976

−906

Cash and cash equivalents at
beginning of current period

20,30018,324

1,976

Cash and cash equivalents at endof fiscal period

21,377

20,3001,076

12Capital Expenditure by Segment(Millions of yen)

FY2019FY2018

Forecast for
FY 2019

ChangeChangeCapital Expenditure

43,631

39,745

3,886

63,200−19,568

Transportation

14,60914,952−343

19,300−4,690Real estate

26,08021,345

4,735

20,3005,780

Retail distribution

1,428

1,188

240

2,500

−1,071

Leisure and service

3,364

1,959

1,405

6,900

−3,535

9

7

1

0

9

−1,860293−2,154

14,200−16,060

OthersAdjustments

13

EBITDA by Segment(Millions of yen)

FY2019FY2018

Forecast for
FY 2019

ChangeChange53,53550,571

2,963

51,0002,535Transportation

23,11920,4692,649

21,8001,319

Real estate

22,666

20,334

2,332

21,2001,466

Retail distribution

4,230

4,171

58

4,200

30

Leisure and service

2,933

6,040

−3,106

3,100

−166

Others

−20

71

−91

0

−20

Adjustments

605

−515

1,121

700

−94

EBITDA14

FY2020

Forecasts

15

Consolidated Statement of Income (Performance Forecast)• Operating revenue is expected to increase due in part to the full-year contribution of new hotels that opened in the previous year. However, operating income
and ordinary income are likely to decrease partly due to a drop in sales of condominiums with large profit margins, which was posted in the previous fiscal
year. Profit attributable to owners of parent is projected to increase thanks to a fall in extraordinary loss, which was posted in the previous fiscal year.
(Millions of yen)

FY2020forecasts

FY2019ChangeChange (%)

Operating revenue

326,700

326,159

540

0.2%

Operating income

32,00033,715−1,715−5.1%

Ordinary income

30,50032,108−1,608−5.0%

Profit attributable to owners of parent

22,00021,480519

2.4%

Capital expenditure

55,20043,631

11,56826.5%

Depreciation

21,20019,819

1,380

7.0%

EBITDA

53,20053,535

−335

−0.6%

Interest-bearing debt

375,000

334,346

40,653

12.2%

7.05

6.25

0.80

–

6.67

5.85

0.82

–

Interest and dividend income

846

937

−91

−9.7%

Interest expenses

2,266

2,401

−134

−5.6%

Net interest expense−1,420−1,46343–

Interest-bearing debt/
EBITDA multiple (Times)
Net interest-bearing debt/
EBITDA multiple (Times)

16

Segment Information (Performance Forecasts)(Main factors of changes compared to FY2019)• Transportation: Increase in the number of tourists to the Kyoto area in the railway business, and a rise in repair expenses and personal
expenses.
• Real estate: Drop in sales of condominiums with large profit margins, which were posted in the previous year.
• Retail distribution: Full-year contribution of the FREST Matsui Yamate Store, which was renovated in the previous year.
• Leisure and service: Full-year contribution of new hotels including THE THOUSAND KYOTO, which commenced operation in the previous
year, and a fall in expenses for opening hotels, which were posted in the previous year.

(Millions of yen)

FY2020forecasts

FY2019ChangeOperating revenue

94,60093,926673

Operating income

10,400

11,221−821

Operating revenue

108,100

118,607−10,507

Operating income

14,90017,468−2,568Retaildistribution

Operating revenue

101,500

98,727

2,772

Operating income

3,600

2,923

676

Leisure andservice

Operating revenue

38,10030,621

7,478

Operating income

4,300

1,817

2,482

Operating revenue

3,500

1,843

1,656

Operating income

−400

−57

−342

Operating revenue−19,100−17,567−1,532

Operating income

−800

342

−1,142

Transportation

Real estate

OthersAdjustments

17

Operating Results for Transportation(Performance Forecasts) Keihan Electric Railway

FY2020forecasts

FY2019ChangeChange (%)

Millions of yen

Millions of yen

Millions of yen%

52,65052,054595

1.1

Non-commuter passes

35,70535,187517

1.5

Commuter passes

16,945

16,86678

0.5

Thousands of people

Thousands of people

Thousands of people

297,490

295,099

2,390

0.8

Non-commuter passes

151,509

149,795

1,713

1.1

Commuter passes

145,981

145,304676

0.5

Passenger transportation
revenue

Number of passengers%

18Capital Expenditure by Segment (Performance Forecasts)(Millions of yen)

FY2020forecasts

FY2019ChangeCapital Expenditure

55,20043,631

11,568Transportation

18,30014,6093,690

Real estate

18,80026,080−7,280Retail distribution

2,300

1,428

871

Leisure and service

2,300

3,364

−1,064

Others

1,500

9

1,490

Adjustments

12,000−1,86013,86019

EBITDA by Segment (Performance Forecasts)(Millions of yen)

FY2020forecasts

FY2019Change53,20053,535−335

Transportation

22,30023,119−819

Real estate

21,10022,666−1,566

Retail distribution

4,900

4,230

669

Leisure and service

5,700

2,933

2,766

Others

−300

−20

−279

Adjustments

−500

605

−1,105

EBITDA20

Progress Status of
Keihan Group’s Medium-Term
Management Plan
“Create Living, Community,and Excitement”

21Overall structure of the long-term strategic concept
Management vision

Keihan Group’s long-term
strategic concept“Be the beautiful Keihan areas
and the global Keihan group”
Long-term
management strategy
 Main strategies
Redevelop
Keihan areas
Co-create
沿線再耕tourism opportunity
観光共創
Create relatable contents

Medium-term
management plan
“Create Living, Community,and Excitement”
2018

2019

Major
events/projects

2020

2021

2022

2023

2024

*Includes planned projects

2026

Opening of IR (Integrated Resort)in Yumeshima,Osaka (planned)

G20 Osaka Summit
Rugby World Cup
Opening of the USJ’s new areas

Transportation
network2025

Expo 2025 Osaka,KansaiTokyo 2020 Olympic Games
World Masters Games Kansai
Full opening of the Shin-Meishin Expressway

Opening of the Naniwasuji Line (2031)

Extension of the Osaka Metro Chuo Line
Extension of the maglev “Chuo Shinkansen” to Osaka (2037)

22

Overview of the long-term management strategy
The main strategies carried out by the Keihan Group toward FY2027
Theme

Basic policy

Priority measures

Redevelop
Keihan areas

Make the areas along the Keihan
Railway lines beautiful through urban
revitalization with railway stations at
the core

Regain the glory of Osaka’s east to
west axis and carry out community
building starting from railway stations

Co-create
tourism
opportunity

Create tourism opportunities with thecommunity and promote global
exchange

Strengthen tourism and inboundbusiness mainly in Kyoto

Create relatable
contents

Create products, services,and businesses that customers
can relate to

BIOSTYLE-Aim for Keihan as First Choice-Preparations for the management vision
Create area portfolios
 Focus on business development in Kyoto and contribute to there-creation of Kyoto
 Expand business to outside the areas along the Keihan Railway
lines (domestic and overseas growth markets)

Promote innovations with an eye to the next generation
 Create services and improve productivity by utilizing ICT technologies
 Promote new businesses

23

The long-term management strategy
Transition of management indices
Consolidated EBITDA and consolidated net
interest-bearing debt / EBITDA multiple

Consolidated operating income(JPY100
million)(JPY100
million)(times)

500

800

10.00
Over 720

Over 430
400
337

320

570

600

335

535

300
400

532
6.67

6.x times

8.00
6.x times

5.85

6.00

200
200

4.00

100
Medium-term Management Plan

Medium-term Management Plan

0

0
2018
2019
2020
FY2020
FY2021FY2019（実績）（予想） （計画）(Plan)(Actual) (Forecast)

2026
FY2027（目標）(Target)2.00
2018 FY2020
2019
2020
FY2019FY2021（実績）（予想） （計画）(Actual) (Forecast)(Plan)

2026
FY2027（目標）(Target)Consolidated EBITDA
連結EBITDA
Consolidated net interest-bearing debt /ネット連結有利⼦負債/EBITDA倍率
EBITDA multiple

24

Strengthen tourism andinbound business mainly in Kyoto

Opening of THE THOUSAND KYOTO

Shichijo-dori St.

• No. of guest rooms:
222

Kyoto Century Hotel

Tokaido Shinkansen

Hachijo-dori St.

Toji Sta.

Muromachidori St.

Shinmachidori St.

Toji-dori St.

Kawaramachidori St.

Hotel Keihan Kyoto
GrandeHotel Keihan Kyoto Station
South (tentative name)(To be opened in spring 2020)
Subway Karasuma Line

After the opening, the occupancy rateincreased in accordance with visibility
enhancement.
We will continue our efforts toward
better performance.

Shiokoji-dori St.

Keihan Main Line

Kyoto Sta.

Nishinotoindori St.

• Access: Approx.
2 minutes. walk from
JR Kyoto Station

Shichijo
Sta.

Tokaido MainLine

Aburanokoji-dori St.

The hotel aims to be a “personal comfort hotel” thatoffers quality accommodation service as well as“tourism and attraction experience” contents.

Kyoto Tower

Kintetsu Kyoto LineThe Keihan Group’s flagship hotel, THE THOUSANDKYOTO, was opened on January 29, 2019 in an
excellent location close by Kyoto Station. This is thehighest-class brand of the Group.

Higashinotoindori St.

Kyoto Tower
Hotel Annex

Kamo River

Co-create
tourism opportunity

TofukujiSta.

Hotel Keihan Kyoto
Hachijoguchi(Opened on Dec. 1, 2018)
Kujo-dori St.

Kujo Sta.

Increasing openings of hotels around Kyoto Station
By opening new hotels, we will have approx. 1,500 guest rooms
around Kyoto Station.
Hotel Keihan Kyoto Hachijoguchi• Opening date: December. 1, 2018
• No. of guest rooms: 234

Hotel Keihan Kyoto Station South(tentative name)• Scheduled opening: Spring 2020
• No. of guest rooms: 200 (planned)

Kyoto Station South(image)Kyoto Hachijoguchi

25

Co-create
tourism opportunity

Strengthen tourism andinbound business mainly in Kyoto

Enhancing transportation network in Kyoto
 Upgrade of Kitano-Hakubaicho Station

 Sky Hop Bus Kyoto

By upgrading Keifuku Electric Railroad (Randen) Kitano-Hakubaicho
Station and improving connection with bus services, we will boost thestation’s convenience and promote tourism.

Eizan Railway

To Yase, Kurama• Start of service:
April. 13

Kinkakuji Temple
Kyoto
Imperial
PalaceNijo-jo Castle

Demachiyanagi

 Keihan Shichijo–Kyoto Station
Loop BusKeihan Railway

Kitano-Hakubaicho

We started operation of a shuttle bus
service connecting Keihan Railway
Shichijo Station and JR Kyoto Station
to improve connection
between the two stations.

Heian Jingu Shrine

To Arashiyama

Keifuku Electric
Railroad (Randen)

Nishiki-ichiba Market

Sanjo
Kiyomizudera Temple

Kyoto Tower

Skyhop Bus Marketing Japan,
sponsored by Keihan Bus, started
operation of a hop-on-hop-off, cruisetype bus service connecting tourist
spots. It is targeted at inboundindividual tourists that are increasing
in number.

Shichijo

To Lake Biwa

• Start of service:
April. 1

JR Kyoto

26

Redevelop
Keihan areas

Regaining the glory of Osaka’s east to west axis andCommunity building starting from railway stations

Hirakatashi
December 2018
• The Hirakatashi Station Area Urban Redevelopment
Preparation Association was established.
• Hirakatashi Station’s concourse of the central exit area on
the second floor was renovated.
FY2020 (planned)• Urban redevelopment plan for Block ③, which includes land
owned by Keihan Holdings, will be formulated.
USJ

Block ③Block ②Block ①

Block ④A partial rework of the Blocks Considered for
Hirakatashi Station Area Redevelopment(Hirakata City)

Block ③ (image)Community building starting from railway stations
Nakanoshima

Yumeshima(Potential site
for IR)

Yodoyabashi

KyobashiTemmabashi

Hirakatashi

Chushojima

Osaka’s east to west axis

Nakanoshima • The area will be developed as a
global hub for business, cultural,and academic exchanges. We wereselected as a preferred bidder
regarding the development of theInternational Hub for Medical
Innovation organized by Osaka City.

Sanjo Demachiyanagi

Major growth polestations

Yodoyabashi• Connection point of the east to west axis and Midosuji
street as the north-south axis.
• We are planning to rebuild the Keihan Midosuji Building
and develop the site.
Oebashi Sta.
Keihan Electric
Railway
Bank of Japan• Revitalization of the entire area
including adjoining land owned by
Keihan Holdings will be promoted.

Yodoyabashi
Sta.
Osaka Metro
Midosuji LineThe International Hub for
Medical Innovation (image)Current status of Keihan Midosuji Building and its surroundingarea

Osaka City Hall
Yodoyabashi
Sta.
Keihan Electric
Railway

Keihan Midosuji Building27

Create relatable
contents

BIOSTYLE-Aim for Keihan as First Choice-

Opening of the GOOD NATURE STATION
BIOSTYLE is a new lifestyle proposed by the
Keihan Group, aimed at achieving a healthy,
beautiful, and high-quality life and contributing to a
recycling-oriented society.
The GOOD NATURE STATION will open in
December 2019 in Shijo-Kawaramachi,Kyoto City
as a facility that embodies BIOSTYLE with food,beauty and accommodation.

 Hotel (4F–9F)••

Large guest rooms with theirinterior featuring natural wood will
provide a comfortable stay forgroup guests.
No. of guest rooms: 141 (120 twinrooms and 21 double rooms)

 Studio (3F)••Houses a comprehensive beauty salon
themed with “vitality” and “rejuvenation” and ashop area handling cosmetic-related items.
We will enter the SPA business to develop
unique brands and products.

 Gastronomy (2F)••To Demachiyanagi

Kawaramachi Sta.
Hankyu Railway

 Market (1F)

Planned site

Takase River

Takashimaya,
Kyoto store

Kawaramachi-doriShijo-dori
Kyoto
Marui

The “premium gastronomy floor” where customers canhave a special eating experience, feeling the four seasons
with their five senses. This will be made possible by ourthorough pursuit of ingredients.
Unlike the restaurant on the 1st floor, this area focuses
only on “special eating
experience.”

•
Kamo
River

•

The Kyoto
Residence
To Yodoyabashi,
NakanoshimaComposed of the two zones
of “Market” and“Restaurant.”
A specialty shop themed on food, offering organic andother healthy food items for having them on site, fortakeaway or through various other styles.

28

Initiatives in the transportation businessTransition of the passenger transportation
revenue and inbound revenue

Initiatives for creating new demand* Inbound revenue is on the right axis. (JPY100 million)

130

20

Inboundrevenue (Keihan Electric Railway)
インバウンド収入（京阪電気鉄道）
KeihanElectric Railway
京阪電気鉄道
Eizan
Electric Railway
叡山電鉄

120

KeifukuElectric Railroad
京福電気鉄道

15

110

10

100

5

• Increased runs of Premium Cars (105 on
weekdays; 118 on weekends & holidays) andoperating hours• Increased runs of Liner trains to a total of fiveruns on weekday mornings and nights, withthe operation section expanded to Kyoto◆ Introduce Premium Cars in the 3000
series (FY2021)

0902013 FY2015
2014 FY2016
2015 FY2017
2016 FY2018
2017
2018
2019
2020
FY2014FY2019FY2020
FY2021(Forecast)(Target)(予想)(目標)※関空入国者数は右軸200(Thousands ofpeople)10,000
Number of entrants via KIX (Inbound)
関空入国者数（インバウンド）

180◆ Increase in the Premium Car and Liner train
services (FY2019)

Sales of KIX Limousine Bus (Kyoto Line)
関空リムジンバス(京都線)売上高

160

8,000
6,000

140
4,000

120
100

2,000

80

0
FY2014FY2017FY2018 2018
FY2019 2019…
FY20202013 FY2015
2014 FY2016
2015
2016
2017
(Forecast)* FY2014 = 100• The number of Premium Cars operated will be
increased by combining with the 8000 series
Premium Cars that havealready been introduced.
• During the daytime, allspecial express trains will
have a Premium Car,in principle.
◆ Increase in the KIX Limousine Bus(Kyoto Line) services• The number of the bus services was increased
at the time of timetable revisions in July 2018
and April 2019.
29

Initiatives in the transportation business
Development of the golden route for tourism of Kyoto
 Upgrade of Eizan Railway Kibuneguchi Station
The station is the gateway to a
popular tourist spot in the Rakuhoku
area, Kibune.

Rakuhoku

Study of next-generation mobility services featuring ICT
 Demonstration experiment of self-driving shuttle bus
services in Otsu City

Kibuneguchi
Mt. Hiei•

The number of passengers using thisstation increased as the number of
inbound tourists increased.
We are renovating the stationbuilding and platforms, andintroducing barrier-free facilities.

Demachiyanagi
Arashiyama•
Higashiyama•
Kyoto Sta.
Fushimi

We aim at practical operation of self-driving buses to securemeans of transportation for elderly people, offer secondarytransport for tourists, and resolve the severe problem of driver
shortage.
The self-driving bus ran through an area where general vehicles
and pedestrians were present, at Autonomous Driving Level 3(self-driving with reservations).
Another demonstration experiment is planned in autumn 2019,
aiming to start practical operation of self-driving buses in Otsu
City in 2020.

Chushojima

To be completed in spring 2020
Uji
Iwashimizuhachimangu

 Attraction of tourists to
Iwashimizu-hachimangu
Shrine• Jointly conducted by Otsu City, Keihan
Bus and Nihon Unisys.
• Experiment date: March. 21, 2019Golden route for tourism 30
of Kyoto

To enhance tourism business aroundthis area, the name of the nearest
station will be changed and the cablecars will be upgraded.
This is an initiative to revitalize theareas along the Keihan Railway lines • The station name “Yawatashi”
and to publicize tourism resources.
to be changed to“Iwashimizu-hachimangu” on
October. 1, 2019

We will proactively promote initiatives featuring
ICT to support solutions to social problems andsustainable development in the communities

30

Initiatives in the real estate business
Major properties acquired or developed through our real estate leasing service
FY2018JCB Sapporo Higashi
Building

Keihan Yokohama
Building

Shiba Park Building*Legend(* indicatespartialownership)

FY2019FY2020June 2017

December 2018

December 2019

Chuo-ku,
Sapporo City

Minami-ku,
Kyoto City

Shimogyo-ku,
Kyoto City

9,062 m2

Hotel Keihan Kyoto
Hachijoguchi

Approx. 8,360 m2

GOOD NATURESTATION

27,628 m2

August 2017

January 2019

December 2019

Naka-ku,
Yokohama City

Shimogyo-ku,
Kyoto City

Manila Metropolitan
Area,Philippines

16,191 m2

THE THOUSAND
KYOTO

41,891 m2
Kyoto Century Hotel included

Office development in
Makati City*

94,768 m2

March 2018

February 2019

December 2019

Minato-ku, Tokyo

Hakata-ku,
Fukuoka City

Minato-ku, Tokyo

97,294 m2
Acquisition or opening
periodLocation
Total floor area

Arietta Hotel Hakata

3,532 m2

Toranomon Hills
Business Tower*

Approx. 173,000 m2

Expand business in and outside areas along the Keihan Railway lines
as the driver of the Group's growth31

Initiatives in the real estate business
Main condominiums to be sold in the term ended March 31, 2020 and thereafter Domestic projects

 Overseas projects
No. ofhousingunits

Name of property, location
Scheduled delivery in FY2020
Fine City Sapporo The North Gate

Sapporo City

66

Fine City Nishinomiya Koshien

Nishinomiya
City

135*

Fine Extra City

Osaka City

138*

Bangkok, Thailand
The Fine Bangkok ThonglorEkamai• Location: Watthana District, Bangkok• Scheduled delivery: July 2020
• Building size: 31 floors above ground• No. of housing units for sale: 220

Second project in Bangkok,
Thailand

Scheduled delivery in FY2021
Fine City Shin-Koshigaya

Koshigaya
City

179

Yamato City Project

Yamato City

604*

Osaka Nishi-ku Kitahorie Project

Osaka City

141

Scheduled delivery in FY2022• Location: Watthana District, Bangkok• Scheduled delivery: December 2020
• Building size: 7 floors above ground• No. of housing units for sale: 109

The suburbs of Jakarta, Indonesia

Osaka Tanimachi 2-chome Tower Project

Osaka City

241

Hirakata Korien Project

Hirakata City

123

Chiba Inage-ku Project

Chiba City

103

Sapporo Kita-ku Project

Sapporo City

227

* Joint project
The number of housing units is the total number of housing units.
The number of housing units and the timing of posting of the above properties may change.

Detached house development
project in suburban areas• Location: Bekasi,West Java,Indonesia• Scheduled delivery: April 2021
onwards• No. of housing units for sale: 111

32

Initiatives in the retail distribution business
Further expansion of the Ekinaka (in-station)business
 The “Hirakata Moyori-ichi” commercial zone
opened in Hirakatashi Station
As the first project under the concept of “community building
starting from railway stations,” a commercial zone integrated
with the station was opened in December 2018 on theoccasion of the renovation of the station’s concourse of thecentral exit area on the second floor.

Store lineup• Small supermarket• Convenience store• BakeryUpgrading commercial facilities
 Upgrade of Keihan City Mall
• Opening after upgrade:
Food and merchandise zones were
March 2019 onwards
enhanced and a large specialty store ofchildren’s goods was opened.
• Nearest station:
The facility will meet the needs of various Keihan/Osaka Metrogenerations, and as such, its value will
Temmabashi Station
be improved.

 Upgrade of FREST Matsui Yamate StoreWe improved the product lineup, focusing on deli items withincreasing demand.
We also enhanced profitability through the introduction of a specialty
store of imported food items.

• Juice bar• Sweet shop

• Opening after upgrade:November 2018
• Nearest station: JR
Matsuiyamate Station

Restructuring of the department store business(JPY100
million)Transition of operating revenue
and operating income(JPY million)

400

500
450

300

Operating
営業収益
revenue

営業利益
incomeOperating

200

400

100

350

We are successfully
improving profitability bycreating stores that suggest
new lifestyles to customers,
attracting inbound tourists,and strengthening businessvitality.

0
FY20172016

FY20182017

FY20192018* Right axis for operational income

33

Initiatives of the Leisure and Service business
Increase openings of hotels aimed at exploiting tourism market growth
Grade, unit
price

High

Brand

• THE THOUSAND KYOTO

No. ofguest
rooms

Plannedopening in
FY2020 andbeyond222

No. of
guest
rooms
222

• GOOD
NATURE
HOTEL

141

555

555

• Biwako Hotel• Hotel Keihan (lifestyle hotel)• Hotel Keihan (business hotel)• Kyoto Tower Hotel Annex

Low
Total no. of
guest
rooms

• CAFETEL

1,802
Hotel Keihan• Kyoto StationSouth•
1,384 Nagoya Sakae• Sendai• ShinTemmabashi• Scheduled
opening:
Summer 2020
• Location:
Aoba-ku, SendaiCity• Kyoto Century Hotel• Kyoto Tower Hotel Hotel Keihan Sendai(tentative name)First hotel opening in the
Tohoku area

• No. of guest
rooms: 200(planned) Hotel Keihan ShinTemmabashi (tentative
name)
Located in Temmabashi area,
2,343
close to Osaka Castle
1,802• Scheduled opening:
Spring 2021

21

21

• Location: Chuo-ku,
Osaka City

3,984

5,084

（4,013）（5,113）• No. of guest rooms:
300 (planned)* Figures in parentheses in the “total no. of guest rooms” include number of guest rooms in alliance hotels.

34

Progress status of major strategic investment projects
FY2019Regaining the glory of
Osaka’s east to west axis

Redevelop
Keihan areas

Co-create
tourism
opportunity
Create relatable
contents

Development of Yodoyabashi, Nakanoshima andKyobashi
Review on the extension of Nakanoshima LineFY2020

FY2021

FY2022 onwards● Selected as a preferred bidder regarding the
Nakanoshima 4-chome International Hub for
Medical Innovation● Upgrade of the station

Community building
starting from railway
stations

Development of the area around
Hirakatashi Station

Strengthening tourism and THE THOUSAND KYOTO
inbound business mainly in Development of Sanjo, Demachiyanagi
and Chushojima
Kyoto
BIOSYTLE● Establishment of the urban
redevelopment plan

● Opening of the GOOD
NATURE STATION
Introduce Premium Cars in the 3000 series ●● Upgrade of Kitano-Hakubaicho Station

Enhancing transportation network
Improvement of safety and services

Acquisition and development of properties

Upgrade of Kibuneguchi Station ●Completing introduction of new ATS
in all Keihan Railway lines ●● Opening of Toranomon Hills
Business Tower● Purchase of Arietta Hotel Hakata

Real estate● Office building in Philippines
Overseas business expansion

Each businesssegment

Retail distribution

Aiming tocompletedevelopmentof each growthpole by
FY2027● Opening of THE THOUSAND KYOTO

GOOD NATURE STATION

Creating new demand

Transportation● Establishment of the Hirakatashi Station Area
Urban Redevelopment Preparation Association

Improving value of the stores (Upgrading)

Condominium in Thailand (1) ●● Condominium in Thailand (2)Detached house development projectin suburban areas in Indonesia ●● Racto Yamashina (the site of former
Daimaru Yamashina Store)● Keihan City Mall
● FREST Matsui Yamate Store●Kyoto Hachijoguchi ●Nagoya Sakae ●Shin-Temmabashi

Increasing openings of hotels

Leisure and service
Enhancing leisure contents●Tsukiji Ginza●Tokyo Yotsuya●Kyoto Station South●Sendai● Upgrade of Kuzuha Golf Links

35

Capital expenditure and shareholder return
Shareholder return policy

Concept of capital expenditure
Aggressive investment for future growth

Shareholder returnSet a total of JPY100 billion over three years as “strategic
investment” .
Carry out investment for growth that contributes to theimprovement of corporate value and the Keihan brandmainly in the “three main strategies” of the long-term
management strategy.

Continue stable dividend payment according toperformance while prioritizing investment for growth.

(JPY million)

Transition of capital expenditure

Carry out flexible share buybacks from a capitalefficiency perspective

Annual dividend
(yen)

40.00

Transition of annual dividend
and stock price

Stock price
(yen)

5,000

60,000
35.00

4,000

30.00

3,000

25.00

2,000

40,00020,000Strategic investment over
the three years
JPY100 billion

20.00

0
2017
FY20182018
FY20192019
FY2020（予想）(forecast)2020
FY2021（計画）(plan)

1,000
2012 FY2014
2013 FY2015
2014 FY2016
2015 FY2017
2016 FY2018
2017 FY20192018 FY2020
2019
FY2013(forecast)（予想）
Annual dividend
年間配当⾦

Stock price株価* Converted factoring in the share consolidation36

To realize a sustainable society
The Keihan Group will contribute to the achievement of SDGs
and aim for continuous growth in harmony with society bycreating products, services, and businesses that contribute tosolving social issues mainly through BIOSTYLE and promoting
business activities in consideration of environment, society andgovernance.

GOOD NATURE STATION
Planning to obtain the LEED
certification (a global certification forgreen buildings) and the WELL BuildingStandard ® certification with regard towellness (to be the first hotel in theworld to obtain the WELL certification).

Self-driving project inEiheiji-cho,Fukui

Operation of bus services fortourists (Sky Hop Bus, etc.)

Sky Hop Bus Kyoto

To contribute to themaintenance of local
transportation network

Transportation

Co-create
tourism
opportunity

BIOSTYLE

Ujicha Bus

Renovation of Kyomachiya traditional houses
Kyomachiya traditional houses arebeing renovated as accommodation
facilities to pass down the history,
tradition and culture fostered in Kyoto
to the next generation.

Leisure andservice

Real estate

Redevelop
Keihanareas

Tourism promotion
in cooperation withlocal communities

Striking a goodbalance between
tourism and local
people’s lives

The first “inheritance” project wasstarted in Higashiyama-ku, Kyoto City.

Retail distribution
Bio Market
Sales of organic agricultural
products and processed
foods that are beneficial toimpose minimum burden on
people and the naturalenvironment.

Promotion of ZEH
Zero Corporation promotes theintroduction of ZEH (Net Zero
Energy House) that contributes tothe reduction of energy
consumption in generalhouseholds.

37

Initiatives in ESG
E (Environment)

S (Society)

G (Governance)

Contribution to global warming prevention

Provision of value trusted by customers suchas “safety and security”

Enhancing governance system• We have decided to be a company with anaudit and supervisory committee since
FY2018.
• Selecting five out of thirteen directors fromoutside of the company.

• Initiatives of Keihan Railway to improve safety
We will make every effort to improve safety and develop humanresources by formulating a medium-term plan for safety andsecurity.
We have been implementing safety improvement measures
including introduction of the multi-information continuous control
ATS system. We have also carried out drills against disasters andaccidents on a continuous basis.

Introduction of energysaving railroad car

Conservation of thesatoyama environment

Contribution to sustainable development oflocal communities

Shareholders’ meeting
Appointment & dismissal
Consultation

Nomination &Compensation RecommenAdvisory
dationCommittee
3 directors(including 2 outside
directors)

ReportStatement of
Opinions, etc.

Appointment & dismissal
Audit & supervision

5 directors serving as audit &supervisory committee members(including 3 outside directors)

13 directors (including 5 outside directors)

Supervision

Appointment& dismissal

Representative
director,
CEO & COO

Report Report

Audit
Accounting
audit

Directors meeting

Keihan GroupCSR Committee
Report• Promoting active employment of people withdisabilities
Established Keihan Smile Heart Co., Ltd. in 2017

• Approach toward a healthy company
Announced “Health Declaration” in 2018

• Promotion of diversity management
Opening of the parking lot
business to promote Park &RideParticipated in the personnel exchange scheme amongmajor private railway companies “Mintetsu Career Train”

Technical committee on
information Security

We aim to increase the number of women in a leadership
position such as management by more than 50% by theend of FY2021 (compared to FY2016).

Technical committee on
environmental management

Development of the environment and acorporate culture encouraging employees
to exercise their strengths• Promoting women’s empowerment

Technical committee oncompliance and crisis/riskmanagement

THE THOUSAND KYOTO
promotes energy-saving
through greening on thebuilding, utilizing
photovoltaic power
generation and well water.

Keihan Yodo Logistics Yard
equipped with photovoltaic
power generation

Internal Control Committee

Participation in the “Kyoto
Midori Project”

Boosting waterway transportation
on Yodogawa River

Establishment of internal control systems

The Lake Biwa Canal
restoration project

Cooperation

Audit & Internal
Control Office

Accounting auditor

Management
Meeting

Appointment& dismissal

Audit Supervisory Committee Cooperation

Board of Directors

Audit &
Supervisory
Committee Office

Audit

Business segments (Transportation, real estate, retail distribution, leisure and service)

Risk management• Formulation of the Business Continuity Plan
(BCP)
Ensuring thorough compliance• Continuously implemented education andtraining programs for employees• Established the Compliance Hotline• Conducted an awareness survey oncompliance38