Keihan Group’s Long-term Management Strategy andMedium-term Management Plan
“BIOSTYLE: Deepening and Challenge”
March 30, 2023 Keihan Holdings Co., Ltd.

Table of Contents
1 Background to Formulation of the New Longterm Management Strategy and Mediumterm Management Plan
2
Reflections on the Past
(Reference) Reflections on the Future BusinessDirection

3
5

2 Long-term Management Strategy(Until FY2031)

Medium-term Management Plan
(FY2024–2026)

6

Positioning of the Long-term Management Strategy
and Medium-term Management Plan

7

Important Changes in the External Environment
and Four Priority Themes

8

Overview of the Long-term Management Strategy

9Long-term Management Strategy
Main Strategies Redevelop Keihan Areas
Co-create Experience Value
Conserve the Global
Environment
Schedule

Medium-term Management Plan
Main Strategies
Strategy for Each Business Transportation
Real Estate
Retail Distribution
Leisure & Service
GOOD NATURE STATION
Strengthening the Management FoundationDX
Human Resources
Strategy
Profit Recovery and Growth Image
Idea of Fund Allocation
Quantitative Targets

17
18
20
22
24
26
27
28
29
30
31

10
12
14
16

1

1. Background to Formulation of the
New Long-term Management Strategy
and Medium-term Management Plan

2

Reflections on the Past (May 2018)

May 2018

 Formulated the Keihan Group’s long-term strategic concept as a guideline for the future,with a view to achieving further growth as a corporate group that is valued by society even in
the midst of anticipated changes in the social and economic environment

Keihan Group’s long-term strategic concept (as of May 2018)
Management
Principles
The Keihan Group will create a comfortable living environment andcontribute to society by establishing a network of dreams, hope, and trust.

Management vision(Vision for 2050)

Long-term management strategy

Be the beautiful Keihan areas and the global Keihan Group We will create value for towns and tourism and disseminate themto the world so that the areas along Keihan Railway lines which
are rich in history, culture, and landscape will be chosen by more
people as areas where they want to live and visit beyond
countries and time.
 We will create a beautiful life cycle in areas along Keihan Railway
lines that brings fullness to the mind and body and contributes tothe realization of a sustainable society, and spreads the ring of
empathy to the world.
 We will attract many inbound tourists to the areas along our lines
and take on the challenge to expand our business Asia-wide.

Started initiatives to achieve our management vision
based on “safety and challenge” using a backcasting
approach(Target: FY2027)

Medium-term management plan
(FY2019–2021)“Create Living, Community, and Excitement”

Designed to establish a foundation as a corporate groupthat will grow sustainably in the future, with the target
year of FY2027, when major large projects will becompleted3

Reflections on the Past (FY2019–2023)

Long-term management strategy (Target: FY2027)

FY2019–2021 (mid-year)

Medium-term management plan
“Create Living, Community, andExcitement”

 The main strategies included in the long-term management strategy (to redevelop Keihan areas,
co-create tourism opportunity, and create relatable contents), as well as the strategy for eachbusiness, were mostly achieved.
COVID-19 pandemic• While assessing the rapidly changing business environment in the immediate future, we
worked to rebuild the management base by implementing measures based on Safety &Security, Structural Reform, and BIOSTYLE.
• We advanced the main strategies (to redevelop Keihan areas, co-create tourism opportunity,and create relatable contents) while reviewing them to achieve sustainable growth in the
future.

FY2021 (mid-year) –2023

Future Business Direction

The flow of people has significantly decreased and the values and lifestyles of customers
have drastically changed.



Establishment of a system to respond to changes in demand through structural reform ismostly complete. In line with the trend toward normalization of social and economic activities,
our business performance is on a recovery track.
[Changes in consolidated operating income]33.7 bn. yen
31.1 bn. yen
17.2 bn. yen
13.4 bn. yen-1.2 bn. yen
2019

2020

2021

2022

2023 forecast(fiscal year) The management vision for 2050 and the basic policy for its achievement, “safety and challenge,” remain unchanged.
However, due to changes in the external environment accelerated by the COVID-19 crisis and the postponement of large
projects, the long-term management strategy with the target year of FY2027 needs to be revised, as its preconditions
are now far from those when it was formulated.
 Based on the above, we have newly established a long-term management strategy and a medium-term management
plan, designating FY2024 as the turning point for shifting from a “COVID-19 emergency response” phase to a “re-growth4
trajectory” phase, in order to build a foundation for sustainable growth in the post-pandemic era.

(Reference) Reflections on the Future Business Direction
Three directions

Companies involved

Main projects

Keihan Electric Railway
Safety & Security

Installing screen doors on the inbound platform of Kyobashi Sta.
Adopting the “barrier-free fare system”
Completing accessibility upgrading on the Kitano Line
Fully resuming service on the Kurama Line
Obtaining “Sakura Quality: A Clean Practice” certification for THE
THOUSAND KYOTO and Biwako Hotel Selling condominiums associated with medical institutions, etc.






Keifuku Electric Railroad
Eizan Electric Railway
Keihan Hotels & Resorts
Keihan Real Estate
Keihan Electric Railway

Keihan Bus
Bus companies
Keihan The Store









Department stores and hotels

Completing sales of magnetic commuter passes
Establishing a management system to respond to changes in demand
Updating train schedules
Revising fares
Revising discount services for PiTaPa
Updating bus schedules and revising fares
Converting the in-station convenience store “Anthree” to the foodmarket “Moyori-ichi”
Establishing a management system featuring multitasking

Keihan Electric Railway
Keihan Bus
Keihan Real Estate






Introducing six sets of energy-saving 13000-series train cars
Introducing electric vehicles for the Station Loop Bus service
Opening the glamping facility Everglades Biwako
Developing ZEH condominiums

Keihan Electric Railway/ Eizan Electric Railway
Eizan Electric Railway/ Keifuku Electric Railroad

Structural Reform

BIOSTYLE

Completion period*
Feb. 2022
Apr. 2023
May 2021
Sep. 2021
Feb. 2022―
Mar. 2021
To be continued
Sep. 2021
Apr. 2023
Jun. 2022
To be continued

Sep. 2021
Dec. 2021
Apr. 2021―

FY2024To be continued*Scheduled completion period for projects currently in progress

What is BIOSTYLE?


Initiative by the Keihan Group to create “products, services and businesses that can increase people’s life value and solve social issues
at the same time”
Unique guidelines have been established to promote BIOSTYLE.
BIOSTYLE
PROJECT
Guidelines

GOOD for Health

GOOD for Minds

GOOD for Local

GOOD for Social

GOOD for EarthGOOD forKEIHAN Brand

GOOD forKEIHAN Business5

2. Long-term Management Strategy (Until FY2031)
Medium-term Management Plan (FY2024–2026)“BIOSTYLE: Deepening and Challenge”

6Positioning of the Long-term Management Strategy
and Medium-term Management Plan
Keihan Group’s long-term strategic concept (FY2024 onward)

Management Principles
The Keihan Group will create a comfortable living
environment and contribute to society by establishing a
network of dreams, hope, and trust.

Unchanged

New

Management vision(Vision for 2050)

Long-term management strategy (Target: FY2031)

 Designed to establish a foundation as a corporategroup that will grow sustainably in the future,even in the highly uncertain post-pandemic era,to achieve our management vision with the target
year of FY2031, the same as that of the SDGs




New

Medium-term management plan (FY2024–2026)“BIOSTYLE: Deepening and Challenge”
Implementing a three-year action plan, made based on
the long-term management strategy, to return to a
growth trajectory
Embodying BIOSTYLE in each business and taking on
the challenge of making BIOSTYLE a source of valueadded improvements in existing businesses and thecreation of new businesses
Pursuing profit levels higher than those of prepandemic levels by steadily capturing recovering andincreasing demand, while maintaining the results ofStructural Reform to date7

Important Changes in the External
Environment and Four Priority Themes
Changes in the external environment
Increasing awareness Increasing intensity Aging and decliningof sustainability
and frequency of
population
natural disasters

Economic and social
shrinkage in the areas
along the railway lines

Diversification of Growing needs forhuman resources a safe and secure
and work stylessociety

Opportunities and risks
Opportunities
•
•
•
•

Risks

Increasing demand for products and services that contribute to thesolution of social issues
Recovery and expansion of tourism demand
Acceleration of community building by the private sector throughthe utilization of public spaces, etc.
Increasing demand for new products and services due to changing
lifestyles and technological innovations such as AI and IoT

•
•
•
•

Suspension of operations and losses due to intense disasters
Decreasing number of customers and labor shortage due to a
declining population
Local economy shrinkage or its acceleration
Impact of changes in lifestyles and work styles on existing businessmodelsPriority themes Four priority themes have been established based on changes in the external environment and opportunities/risks. Main
strategies, strategy for each business, etc. under the new long-term management strategy and the medium-term
management plan are formulated based on these themes.

Four priority
themesCreation of businesses
that contribute to thesolution of social issues

Operation in consideration Organization and humanof the environment andresources that continue tosocietygrow

Sustainable and strong
management foundation

8

Overview of the Long-term Management Strategy
Placing “BIOSTYLE (Keihan version of the SDGs),” which we have been working to establish as the KeihanGroup’s new brand for the creation of a sustainable, recycling-oriented society, at the core of management andbusiness activities, we will promote BIOSTYLE Management that creates both social and economic value.

Promoting BIOSTYLE Management

Creatingsocial value(solving social
issues)Mainstrategies
for FY2031

Strategy foreach business
Strengthening themanagementfoundation

Theme

Mission of the Keihan Group

Redevelop
Keihan areas

Improving the value of the areas along the railway
lines through urban development and area
management

Co-create
Improving the value of Kyoto and the Mt. Hiei/Lakeexperience value Biwa area by offering tourist experiences
Conserve theglobalenvironment

Contributing to the solution of climate change andother environmental issues

Advancing toward achieving
the management vision

Management vision
Creating
economic
value(profit growth)

Be the beautiful Keihan areas
and the global Keihan Group

Contributing to theachievement of the SDGs

Real estate Retail distribution
Transportation
Leisure & Service Other businesses

DX (digital transformation)
Human resources strategy

9Long-term Management Strategy:
Main Strategies (Redevelop Keihan areas)
Basic
policyWith railway stations as a base, we will promote urban development featuring the characteristics of local history,
culture, and industries, as well as area management involving local communities. By connecting the areas with a
traffic network, we will revitalize attractive and beautiful areas along the Keihan Railway lines to increase thevalue of, and attract more residents and visitors to, these areas.

Priority measure 1

Regaining the glory of Osaka’s east-to-west axis

Total floor area Approx. 57,000 m2

See p. 17 for details

Rendering

Own site development inNakanoshima 4-chome
Considering joint development with adjacentlandowners in anticipation of the opening of the
Naniwasuji Line

Naniwasuji Line (JR/Nankai)
To open in 2031

Total floor area

Summer 2025
Approx. 72,850 m2

USJ

See p. 17 for details

Yumeshima

Rendering©Takenaka Corporation

Nakanoshima

Osaka Metropolitan Univ. Morinomiya Campus
To open in 2025

Joint reconstruction of Keihan Midosuji
Building and Nittochi Yodoyabashi
Building
Opening

Kyobashi
Osaka
CastleTo Kyoto

FY2024

Temmabashi

Completion

Nakanoshima

Nakanoshima 4-chome International
Hub for Medical Innovation Project

Yodoyabashi

 Promoting urban development by taking advantage of regional characteristics along Osaka’s east-to-west axis, from Kyobashi, thegateway to Kyoto and close to Osaka Castle, through Nakanoshima, which is planned to become a hub for regenerative medicine, tothe bay area, where the IR project is under way

KyobashiRedevelopment of the
Kyobashi Station area
Advancing consideration of the launchof development as a critical area forregaining the glory of Osaka’s east-towest axis
Osaka Metro
Kyobashi Sta.

JR Kyobashi Sta.

Kyobashi Station boasts thelargest ridership on the KeihanLine. The area houses Keihan
Mall and Hotel Keihan Kyobashi
Grande.

Redevelopment of the Temmabashi
Station area and extension of the
Nakanoshima Line
Deepening discussions with a viewto 2030 and beyond

10Long-term Management Strategy:
Main Strategies (Redevelop Keihan areas)
Priority measure 2 Carrying out community building starting from railway stations
 Concentrating urban functions around railway stations and continuously implementing community building that takes advantageof regional characteristics, including history and culture, in cooperation with local businesses and communities
 Evolving railway stations from mere boarding and alighting spots to spaces where people gather and new communication is
inspired by integrating the station and the community

Around summer 2024

HashimotoKeihan MainLine

Total floor area Approx. 94,000 m2

See p. 17 for details
Hirakatashi
Hirakata-koen
Kozenji
KorienStation area development along withthe consecutive grade separation
project on the Keihan Main Line
Kyobashi

Considering the development of newelevated stations and areas under theelevated tracks for regional
development through the integration ofurban areas now divided by tracks

Nakanoshima
Yodoyabashi(Neyagawa City and Hirakata City)

Kadomashi
Furukawabashi

Rendering

Copyright ©2022 Hirakatashi Station Area Urban
Redevelopment Association. All Rights Reserved

Katano Line

Completion

To Kyoto

Type-1 urban redevelopment projectin Hirakatashi Station area

Development of the Hashimoto
Station area
Promoting the development of a sustainablecommunity where multiple generations cangather and continue to live with peace of mind,
utilizing company-owned land near the station

Redevelopment of the areas in front of
Kadomashi Station and north of
Furukawabashi Station
Participating in projects such as the redevelopment of
Kadoma Plaza, a commercial facility in front of
Kadomashi Station, and the development of Kadoma
City’s first high-rise condominium, a commercial
facility, and a large plaza open to the community on
city-owned land north of Furukawabashi Station

North of Furukawabashi Sta. (rendering)11

Long-term Management Strategy:
Main Strategies (Co-create experience value)
Basic policy

We will discover and improve valuable resources mainly along the Kyoto Tourism Golden Route, and co-create
attractive, experience-based content with local communities. By utilizing these for advancing tourism-based
community building and themed tourism, we will promote sustainable tourism and increase the number of visitors,
including repeat visitors, from Japan and abroad.

Priority measure 1 Developing new tourist bases
 Developing tourist bases that will provide new options for Kyoto visitors in the area southeast of Kyoto Station near Kyoto City
University of Arts (which will be relocated to the east of Kyoto Station in 2023) and the Sanjo area near tourist attractions in
Higashiyama, among other areas

Kyoto Station Southeast Area Project

Redevelopment of Kyoto Tower

Completion

FY2025

Ginkakuji Temple

Total floor area Approx. 10,000 m2

Pontocho

Sanjo

Heian-jingu
ShrineGion

See p. 17 for details

Nanzenji Temple
Yasaka-jinja Shrine

Kiyomizu-dera Temple

Rendering

Redevelopment of the Sanjo Station area
Developing a complex facility in front of Sanjo
Station, which will serve as a tourist base in
Higashiyama and promote Japanese and Kyoto
culture, thereby enhancing its function as aterminal station

Kyoto Tower

Deepening discussions about theredevelopment of Kyoto Tower for
FY2031 and beyond

Renovating facilities at the top of
Mt. Hiei
Renovating facilities at the top of Mt.
Hiei to make the area more attractive
to tourists
Mt. Hiei

Kyoto Sta.

Hieizan
Driveway

Sanjo

Ishiyamasakamoto Line
Lake Biwa

Demachiyanagi

Keishin Line

12

Long-term Management Strategy:
Main Strategies (Co-create experience value)
Priority measure 2 Establishing the Kyoto Tourism Golden Route through themed tourism
 Establishing the Kyoto Tourism Golden Route by co-creating story-based tourist experiences with local communities under suchthemes as traditional industry, art, food, history, and nature, as well as by providing comfortable area-wide tours using MaaS andother methods in Kyoto and surrounding areas

Kyoto Tourism Golden Route: Rakuhoku–Higashiyama–Fushimi/Uji

Co-creating tourist experiences with local communities in each area

Oku-Kyoto

Mt. Hiei

Higashiyama

Lake Biwa

Rakuhoku

Higashiyama–Kyoto Station Area

Fushimi/Uji Area

Theme: Traditional industry and art

Theme: Food and food-related tradition

Developing craft and art tourism in cooperation with local
communities, in conjunction with the Sanjo Station area
redevelopment project, to provide a deeper experience oftraditional industry nurtured over generations and of newly
emerging art forms

Mt. Hiei/Lake Biwa/Oku-Kyoto Area
FushimiUji

and culture
Developing gastronomy tourism incooperation with local communities based on
sake, vegetables, and Uji tea, which areproduced by the excellent water of Fushimi,
and other related culture and traditions

Theme: History and nature
Establishing adventure tourism in cooperation with Hieizan-Biwako DMO and other organizations, featuring the richnatural surroundings and scenery, as well as learning of the history and culture, of Mt. Hiei and Oku-Kyoto (inner Kyoto
area)

Priority measure 3 Creating tourism content that connects Kyoto and Osaka

Focusing on the “Flow of Water,” which runs from Lake Biwa to Kyoto and Osaka Bay through the
Yodogawa River with its rich history, culture and scenery, to create tourism and experience-based content
centered on waterway transportation (river and sea boats), while taking advantage of the extension of theLake Biwa Canal Cruise to Otsu Port, improvement of the flow conditions between Fushimi and Hirakata
for the launch of large boats, and construction of the Yodogawa Ozeki Lock
Encouraging use of the Keihan Line by creating and promoting tourism content unique to the Keihan area,
based on the theme of art, in cooperation with museums and other facilities in Kyoto and Nakanoshima,
Osaka

Lake Biwa Canal

Cruise boat Himawari on the
Yodogawa River

13

Long-term Management Strategy:
Main Strategies (Conserve the global environment)
Basic policy

To achieve our CO2 emission reduction target, we will steadily reduce energy consumption through thoroughenergy saving and introduction of new technologies, and consider promoting energy creation, such as PV power
generation, and procuring renewable energy. We will also work on developing products and services that will bechosen in a decarbonized society.

Priority measure

Promoting BIOSTYLE Environmental Action 2030

 Promoting BIOSTYLE Environmental Action 2030, the Keihan Group’s medium- to long-term environmental plan releasedin May 2022
Course of action
Promoting the reduction of CO2 emissions and the development of products and services that will bechosen in a decarbonized society through “thorough energy saving and introduction of newtechnologies,” “promotion of energy creation,” and “procurement of renewable energy”

Reducing CO2 emissions

Thoroughenergy saving
and introduction of newtechnologies

CO2 emission reduction target*2

Reducing CO2 emissions by 46% by FY2031 (compared to
FY2014), with the goal of achieving net-zero CO2 emissions
by FY2051*2 Applies to nine companies (Scope 1 & Scope 2)

Promotion ofenergycreation*1

Procurement of

renewableenergy*1 Introduction of PV power generation equipment, etc.

Developing products and services that will bechosen in a decarbonized society
14Long-term Management Strategy:
Main Strategies (Conserve the global environment)
Thorough energy saving andintroduction of new technologies
 Reducing energy consumption and CO2 emissions throughcapital investment and more efficient business operations
Main investments• Accelerating the introduction of energy-saving
train cars in the railway business• Promoting the introduction of electric buses• Converting all lighting to LED lighting incompany-owned facilities such as stations, officebuildings, commercial facilities, and hotels• Obtaining DBJ Green Building Certification for
newly developed buildings• Optimizing operation and upgrading air
conditioning, gas, and other facilities

Developing products and services that will bechosen in a decarbonized society Developing new products and services that will be chosen
in a decarbonized society through the promotion of energy
creation and the procurement of renewable energy Launching a service to install
PV power generationequipment at no initial costto residents in newly built
detached houses for sale in
the real estate sales business

Promotion of energy creation
 Promoting the installation of PV
power generation equipment, etc.
at Group-owned facilities Considering participation in a
program to install PV power
generation equipment outside of theGroup’s premises

PV power generationequipment will be installed at
Fushimi-inari Sta. on the
Keihan Main Line (FY2025)

Procurement of renewable energy
 Purchasing J-Credits, non-fossil certificates, etc.
GOOD NATURE STATION starts operation
with virtually 100% renewable electricity(FY2024)

Efforts for information disclosure Promoting information disclosure and specific initiatives toreduce CO2 emissions throughout the supply chain

Promoting a circular economy
 Contributing to the creation of a recycling-oriented society
by promoting waste recycling

15

Long-term Management Strategy: Main Strategies (Schedule)
Period of the medium-term management plan

2024
Nakanoshima 4-chome International
Hub for Medical Innovation Project
Own site development in Nakanoshima
4-chome2025

Redevelop Keihan areas
Co-create experiencevalue
Conserve
the global
environment

Under consideration and deliberations
Deepening discussions with a view to 2030 and beyond
Opening of the area directly
connected to the station ●Completion of the urban●
redevelopment project

Under consideration and deliberations

Development of the Hashimoto Sta.
area

Under consideration and deliberations
Completion of the Furukawabashi project● The Kadomashi project under consideration and deliberations

Kyoto Sta. Southeast Area Project

Opening●

Redevelopment of the Sanjo Sta. area

Under consideration and deliberations

Redevelopment of Kyoto Tower

2031

Opening●

Station area development along with theconsecutive grade separation project on the
Keihan Main Line

Redevelopment of the areas in front of
Kadomashi Sta. and north of
Furukawabashi Sta.

・・・・・・・・・・・・・・・

Under consideration and deliberations

Redevelopment of the Temmabashi Sta. areaand extension of the Nakanoshima Line

Type-1 urban redevelopment project in
Hirakatashi Sta. area

2027

Completion●

Joint reconstruction of Keihan Midosuji Bldg.
and Nittochi Yodoyabashi Bldg.

Redevelopment of the Kyobashi Sta.
area

2026

(fiscal year)

Deepening discussions with a view to 2030 and beyond

Renovating facilities at the top of Mt. Hiei

Under consideration and deliberations

Thorough energy saving and introduction of
new technologies, promotion of energy
creation, procurement of renewable energy

Under consideration to be implemented as needed

16Medium-term Management Plan: Main Strategies
Redevelop Keihan areas

Redevelop Keihan areas

Nakanoshima 4-chome International Hub for
Medical Innovation Project
Completion

FY2024

 Contributing to the2industrialization andTotal floor area Approx. 57,000 m
globalization of medical
innovation by developing
facilities that promote the“circulation of knowledge”
where people involved in
medical innovation and cuttingedge information gather

Joint reconstruction of Keihan Midosuji Building
and Nittochi Yodoyabashi Building
Opening

Total floor area

Summer 2025
30F

Property use

Rendering

12F–29F
10F–11F
4F–8F
B1F–2F

Rendering

FY2025

FY2026
Co-create experience value

Redevelop Keihan areas

Type-1 urban redevelopment project in Hirakatashi Station area
Around summer 2024

Total floor area Approx. 94,000 m2

Rendering

Commercial area,
observation terrace
Offices
Business lounge
OfficesCommercial area

©Takenaka Corporation

FY2024

Opening Building a high-standard
office building, the highest
in the area at 150 meters
high, in Yodoyabashi, thegateway to Midosuji, withadvanced eco-friendly
technology

Approx. 72,850 m2

Copyright ©2022 Hirakatashi Station Area Urban
Redevelopment Association. All Rights Reserved

 Building “a walkable community” by developing alarge-scale commercial facility, offices, a hotel,
and rental high-rise residences, which will beconnected to the commercial space under theelevated railway tracks, in an integrated mannerwith the station
 Participating in area management and otherintangible aspects of community building aroundthe station as a member of the Hirakata HUB
Council, a community development organization
formed through industry-government-academia
collaboration

Kyoto Station Southeast Area Project
Opening

FY2025

Total floor area Approx. 10,000 m2

Rendering Participating in an LLP led
by teamLab Inc. to establish
and operate a culturalcomplex that connects thearea with the world with afocus on art as a “base forcreating and sharing newvalue”To be implemented as needed
Co-create experience value

Establishing the Kyoto Tourism Golden Route through themed tourism, creating tourism content that connects Kyoto and Osaka

Conserve the global environment

Thorough energy saving and introduction of new technologies, promotion of energy creation, and procurement of renewable energy

17Medium-term Management Plan:
Strategy for Each Business (Transportation)
We will create new demand and optimize operations while further improving “safety and security,” thefoundation of the Keihan Group, to build a strong business structure.
Main measures for BIOSTYLE Management

Promoting more eco-friendly transportation business Driving the consecutive grade separation project on the
Keihan Main Line (eliminating traffic congestion by removing
railroad crossings and reducing CO2 emissions) Accelerating the introduction of eco-friendly 13000-series traincars at Keihan Electric Railway
 Introducing vehicles equipped with VDF
inverters and regenerative braking,remodeling existing vehicles withregenerative braking, and newly installing
regenerative power storage equipment on
Keifuku Electric Railroad Introducing more electric buses in the bus
business (Keihan Bus, etc.)
 Promoting effective vehicle operation
 Converting lighting to LED lighting at stations and other railway
facilities
Contributing to a decarbonized society and reducing costs
while building a sustainable transportation system

Further efforts for safety and security
Keihan Electric Railway

 Accelerating the introduction of platform
screen doors and other accessibility
facilities
Platform screen doors
will be installed on eighttracks in four stations,
including Hirakatashi
Station, by FY2026

 Installing on-board security cameras on
newly built or remodeled vehicles
 Driving the consecutive grade separation
project on the Keihan Main Line (improving
operational security by removing railroad
crossings)

18

Medium-term Management Plan:
Strategy for Each Business (Transportation)
Providing special riding experiences on Keihan Electric Railway

Capturing new mobility demand Increasing the number of Premium Cars to provide a quality
travel experience in response to customers’ changing lifestyles andgrowing needs for safe and reliable travel services

 Implementing proactive marketing measures throughcollaboration between the railway and bus businesses
to capture opportunities that are expected to create
new mobility demand, such as the grand opening of the
Kyoto Racecourse in FY2024, the World Expo in
Osaka, Kansai to be held in FY2026, and the Osaka
IR to be opened in FY2030

Changes in the number of Premium Car users(index)*

300
200

100

3000-series Premium Car

2018

2019

2020

2021

2022

2023

(fiscal year)*FY2018 set at 100

 Considering the introduction of sightseeing trains to attract more
visitors to the areas along the railway lines

 Improving convenience for tourists by utilizing MaaS
and introducing QR code tickets, as well as bystrengthening cooperation with temples, shrines, tourist
facilities, and transportation services along the railway
lines in Kyoto, in order to attract inbound tourists

Transforming operations through the use of digital technology, etc.

Examining the ideal bus office operation and routes

 Encouraging the substitution and supplementation of labor throughthe use of IoT, AI, robots, etc.

 Examining the ideal operation of bus offices
and routes of each bus company, including
the possibility of integration, with the aim ofachieving efficient, sustainable operations forthe business as a whole

Keihan Electric Railway• Considering the expansionof driver-only operation• Efficient operation of vehicles andrailway facilities• Promoting DX in maintenance
operations, including Condition Based
Maintenance (CBM)

Bus business• Considering the introduction of self-driving vehicles

19Medium-term Management Plan:
Strategy for Each Business (Real estate)
We will promote the creation of comfortable and secure communities and residences, provide new products
and services that meet customer needs, and expand business areas and asset types, thereby driving theGroup’s growth.
Main measures for
BIOSTYLE Management

Strengthening the housing regeneration business Enhancing detached housing development in urban
districts utilizing vacant houses and land
Contributing to the regenerationof urban districts along therailway lines that are due forrenewal/redevelopment by
utilizing our technology andknow-how of house building cultivated in Kyoto, a
unique city in Japan
 Participating in condominium reconstruction projects
Accumulating rebuilding know-how by promoting
apartment complex rebuilding projects based on the
Act on Facilitation of Reconstruction of Condominiums,
so as to secure profits in the future

Promoting sustainable community
building that circulates residents andgenerations

Developing products and services that meet
diversifying values and lifestyles
Real estate sales

 Developing and marketing environment-conscious
houses and offices, such as ZEHs and wood-framebuildings

ZEH (Net Zero Energy House)

Rendering of a ZEH condominium“The Sapporo Towers”

Real estate leasing

 Increasing service
locations in theworkplace rental
business
Gradually expanding
from the current two
locations (Kyoto Station
and Temmabashi)

ServiceOffice W
Kyoto EkimaeServiceOffice W
Temmabashi

20Medium-term Management Plan:
Strategy for Each Business (Real estate)
Expanding domestic business areas and asset types in the real estate
sales and leasing businesses

Promoting development projects utilizing
urban development methods

 Promoting the acquisition of land for development and rental properties inthe three major metropolitan areas as well as in highly advantageous corecities in other regions
 Developing and acquiring non-residential real estate assets that matchthe areas and needs in anticipation of future shrinkage of the domestic
housing market

 Proactively participating in urban
development along the railway lines andin other areas, including land readjustment
projects in Shimokoma, the Yawata IC
south area, and Rakusaiguchi

Area expansion

SapporoHiroshima
Fukuoka
Okinawa

SendaiDeveloping and acquiring nonresidential real estate assets

Hotels
OfficesTokyo metropolitan area
Chukyo area
Kinki area

Logistics facilities, etc.

Kyoto Sta.

Rakusaiguchi

Chushojima

UjiKuzuhaHirakatashi

Iwashimizu-hachimangu

Yawata IC south area
KisaichiShimokoma

Effective utilization of owned properties

Overseas business expansion

 Promoting large-scale development, renovation, and conversion of unused
land and old or deteriorating properties

 Investing the Group’s managerial
resources in overseas projects in thereal estate leasing business, etc.,
while assessing the businessdirection

Major upcoming projects• Land in Omi-Maiko(Otsu City, Shiga)• Land in Deyashiki, Hirakata City
(Hirakata City, Osaka)• JCB Sapporo Higashi Bldg.
(Chuo-ku, Sapporo City, Hokkaido)

As part of this initiative, Everglades Biwako (a glamping
facility) opened in April 2021 in Omi-Maiko. Further
development will be explored and promoted in the future.

Anticipated areas• Emerging countries with high economic
growth potential (mainly ASEAN-5)• Europe, the U.S., and Australia, wherematurity and stable growth are expected21Medium-term Management Plan:
Strategy for Each Business (Retail distribution)
We will increase profits by evolving and developing commercial activities in the areas along the railway lines to
respond to diversifying lifestyles, while supplying commercial content that contributes to the main strategies
and establishing tourism commerce.
Main measures for
BIOSTYLE Management

Developing the project to suggest “safe, reliable, and healthyeating habits”

Evolving and developing commercial activities in the areas
along the railway lines

 Product development
Promoting the developmentof health-conscious products
by combining the strengths ofthe department store,
supermarket, and organic produce sales businesses Creating and providing new consumer experiences in
response to changing customer needs through the gradualrenovation of shopping malls and other facilities
 Expanding self-organized sales areas, which are unique todepartment stores that offer customer-oriented, high-quality,
and ahead-of-the-times products and services, establishing abrand, and promoting its development as tenant stores incommercial facilities, either those of the Group or those ofother companies Strengthening “Yorozu wo Tsugumono,” an e-commercemall that offers special products carefully selected from allover Japan by department store buyers
 Providing optimal services to meet the needs of customers
and the community by converting the in-station convenience
store “Anthree” to the food market “Moyori-ichi” andreorganizing the station spaces Launch of a process center
Launching a new process center to accelerate thedevelopment of safe and reliable original products andincrease production capacity for stable supply Mobile supermarket service
Offering a mobile supermarket service that regularly sells
food and other products at condominiums, nursing carefacilities, residential areas, etc. to create new points ofcontact with customers and solve the regional issue of the“last mile” arising from the aging of the population and otherfactors

Expanding business while encouraging
customers’ healthy eating habits in the areas
along the railway lines

Kuzuha Mall

Moyori-ichi Temmabashi Sta.

22

Medium-term Management Plan:
Strategy for Each Business (Retail distribution)
Promoting community building along the railway lines

Establishing tourism commerce Utilizing the know-how cultivated through the operationof commercial facilities in community building to create
lively spaces that connect with the community in public
spaces, such as stations, plazas, and spaces underelevated railway tracks, and to develop urban functions
 Promoting area management from a commercial
perspective, including the creation of a communication
plaza in the public space where people can gather andinteract, in order to make the area more attractive andvaluable on a continuous basis
 Promoting open innovation in commercial facilities
through partnerships and collaboration withstartups
 Opening an incubation facility to create a place forindustry-academia-government interaction

 Promoting community building through tourism bydeveloping story-based experience programs and productsthat carry on the history and regional characteristics of theareas along the railway lines
 Developing a tourist base that carries on Kyoto’s
Higashiyama culture and creates new tourist experiences tomake it an established base in Kyoto
 Promoting branding and area value enhancement throughthe development of tourism and commercial content in
the Mt. Hiei/Lake Biwa area, thereby capturing inbound anddomestic tourism demand

Advancing development projects along the railway lines
 Type-1 urban redevelopment project in the
Hirakatashi Station area
Forming a base for suggestingenriched lifestyles and work styles,
Rendering of storesand developing BIOSTYLE-based
stores Joint reconstruction of the Keihan Midosuji Building
and the Nittochi Yodoyabashi Building
Creating a commercial space on lower floors (B1–2F) Launching tourist-focused“Moyori-ichi” stores in major
tourist destinations in Kansai,
which take advantage of thecharacteristics of each area
Moyori-ichi Sanjo Sta. “Noren-gai”(tourist-focused store)
and sell local products andoriginal products and content developed by the company, incooperation with local companies and famous stores

23

Medium-term Management Plan:
Strategy for Each Business (Leisure & Service)
We will strengthen our competitiveness by promoting branding through the provision of valuable customer
experience and advancing high-value-added renovations in order to capture domestic and inbound demand,
which is expected to recover in the future.
Main measures for
BIOSTYLE Management

Enhancing competitiveness through SDG-oriented rebranding

Adding value to products and services

 Developing and offering products and services that incorporate local
food, culture, and experiences of living in harmony with nature Advancing high-value-added renovationof guest rooms and other facilities inexisting hotels to create spaces thatsatisfy guest needs

THE THOUSAND KYOTO• Rebranded in July 2022 to drive
sustainability for the entire Keihan Group• Providing comfortable and sustainable
experiences and undertaking 100 SDG
actions in one year
Biwako Hotel• Acting with and nurturing local
communities through projects such as“The Culinary Colours of SATOYAMA,”
which was designed to protect local
communities through the consumption offoods produced in Shiga

Providing sustainable and special stay andtourism experiences that contribute to the SDGs

Hotel Keihan Namba Grande,
which opened in March 2023,
offers concept rooms that canbe used not only as bases forbusiness trips andsightseeing, but also as
places for guests to relax as if
they were at home.

Family room

Bunk bed room Creating and providing special emotional
experiences that leverage the company’s
strengths and local attractions
THE THOUSAND KYOTO offers
wine lectures by the chefsommelier and other events.

24Medium-term Management Plan:
Strategy for Each Business (Leisure & Service)
New hotel launchTransforming operations through the use of digital technology, etc.

 Considering opening new hotels to expand thebusiness scale Transformation to smart hotels

Carefully selecting areas and locations for the new hotels
while observing the recovery of tourism demand

Developing smart hotels through the use of IoT, AI,
robots, etc. to provide a smooth stay experience andimprove operational efficiency

Potential areas• Tokyo metropolitan area, Fukuoka, other ordinancedesignated cities, tourist cities
Business models• Examining a wide range of business models, including
new as well as existing ones, and considering uniqueproducts and services that feature attractive content
specific to the area and location

 Enhancing digital marketing
Improving and automating hotel membership management
through the use of digital tools to improve productivity andprofitability

Expanding profit-earning opportunities in the ship businessContinuing structural reform of the business Creating attractive tourism products jointly with local
accommodation and tourist facilities to attract new influxesof people to be brought about by the extension of the
Hokuriku Shinkansen from Kanazawa to Tsuruga

 Evolving the structural reform initiatives promoted under the
COVID-19 crisis to build an operating structure that can
respond flexibly to changes in the business environment

Tsuruga

Imazu

Nagahama

ChikubuIsland cruise
Otsu

Main initiatives for structural reform• Promoting multitasking• Utilizing hotel facilities by taking advantage of
their geographical advantages• Outsourcing restaurant operations• Introducing catering robots, etc.

25Medium-term Management Plan:
Strategy for Each Business (GOOD NATURE STATION)
While increasing the visibility and expanding the sales channels of the GOOD NATURE STATION, a commercial
complex offering sustainable experiences, and the product brands NEMOHAMO, RAU, Sachi Takagi, and GOOD
NATURE MARKET, we will conduct new product development and new store launches on a continuous basis,
thereby establishing a profit base.
Establishing own brands

NEMOHAMOGOOD NATURE
MARKETRAU
Sachi Takagi

An organic cosmetics brand that uses natural Patisserie brands offering sweets that are
ingredients, without any petroleum-derived
both beautiful and delicious and that no one
ingredientshas ever seen before

A food brand that develops products usingmaterials that would normally be discarded(e.g., cacao shells)

 Focusing on its marketing as a hotel Opening permanent stores, mainly inamenity (expanding B2B sales channels)
department stores in the Tokyo
metropolitan area
 Opening a new flagship store in Enhancing product development andexpanding the product lineup Expanding sales channels by focusing
on wholesalingTokyo Strengthening production
infrastructure and the production
management system

Making GOOD NATURE STATION more attractive

Establishing multiple GOOD NATURE STATION stores Hosting unique activities andexpanding and improving
experience-based content in thefacility in preparation for afull-fledged recovery of inboundtourism Considering not only new store
launches by each brand, but also
developing multiple commercial
complexes consisting of restaurants,
markets, stores, and hotels
26Medium-term Management Plan:
Strengthening the Management Base (DX)By utilizing digital technology in each of the Keihan Group’s businesses, we will create experience value andsophisticate the Group’s business management, thereby evolving into a corporate group capable of providing
reliable value even in a rapidly developing digital society.
Creating experience value
Main measure Promoting the Keihan Group‘s digital strategy

1. Digitalizing customer contact points
Expanding points of contact with customers through the developmentof products and services, utilizing digital technology to attract newcustomers and increase membership
Developing the Keihan Group Digital Ticketing System
Developing an e-commerce platform

Utilizing Kansai MaaS

3. Digital marketing to meet diverse
customer needs

2. Integrating customer data
Integrating the Keihan Group’s customer data to understandour customers and their needs more deeply
Integrating Keihan Group Customer IDs
Installing the Keihan Group’s customer data infrastructure

4. Developing new products, services, andbusinesses that enhance the experiencevalue of customers

Improving information service and proposal capabilities for products
and services that accurately meet customer needs

Developing new products, services, and businesses that enhance theexperience value of customers through co-creation with businesses
and startups inside and outside the Group

Restructuring the Group’s point system

Data utilization, sales promotion support, and joint planningof new products and services by the entire Keihan Group

Redesigning the websites of Keihan Holdings/Electric Railway

Sophisticating the Group’s business management
 Promoting the digitalization of business management (e.g., real-time visualization and analysis of financial and nonfinancial data) to enable rapid, accurate, and data-based decision-making and response even in a difficult-to-predictbusiness environment

27

Medium-term Management Plan:
Strengthening the Management Base (Human resources strategy)
We will maximize the abilities and performance of each of our diverse human resources, and reform thecorporate culture to encourage challenges and innovation with a view to creating an environment in which
employees can play an active role with a “BIOSTYLE mindset.” This will enable us to continue to create newvalue and achieve sustainable enhancement of corporate value.

Sustainable enhancement of corporate value
Creating new value(both social and economic value)

Developing an environment in which employees play an active role with a “BIOSTYLE mindset”
Maximizing the abilities and performance of each individual

Reforming the corporate culture toencourage challenges and innovation

Improving work engagement (job satisfaction)

Developing a system that encourages challenges and motivates selfdirected growth

Promoting human resources diversity

Promoting management that makes the most of human resources

Main initiatives (in the case of Keihan Holdings Co., Ltd.)
Human resource management thatencourages self-directed growth Opportunities and empowerment topromote growth and challenges
 Career design support in line with eachindividual’s career aspirations

Creating an environment in which each ofour diverse human resources candemonstrate their abilities without anxiety
 Independent and creative work style notlimited by time or place Stimulating internal communication

Ensuring the skills required to executethe strategy
 Training programs that promote andsupport skills development
 Experienced recruitment

28

Medium-term Management Plan:
Profit Recovery and Growth Image
Preconditions for revenue

Keihan Electric Railway’s
passenger revenue (excluding theeffects of future measures, etc.)

FY2026 Non-commuter pass passenger revenue: Around -10% compared to the average year
Commuter pass passenger revenue: Around -15% compared to the average year

Inbound demand

Exceeds pre-COVID-19 crisis levels in FY2026, partly due to Expo 2025 Osaka, Kansai

Profit recovery and growth image(billions of yen)

34.0
31.1

23.0
20.1
17.2
13.4

16.0
 Recovery of demand for domestic and inboundtourism Increase in visitors due to Expo 2025 Osaka,
Kansai Expansion of the real estate business Opening of facilities created by major projects(Nakanoshima, Hirakatashi, Yodoyabashi)

9.5

-1.2

-4.5

FY2020

FY2021

FY2022

FY2023 forecast

・・・・・・・・・・・・・・・

FY2026 plan(fiscal year)

Operating income

Profit attributable to owners of parent

29Medium-term Management Plan: Idea of Fund Allocation
 Proactively making investment for growth that contributes to the enhancement of corporate value and the Keihan
brand, centered around the three main strategies included in the long-term management strategy
 Continuing stable dividend payments in line with business performance and flexible share buybacks in terms ofshareholder returns*Aiming for early resumption of a dividend of 35 yen per share (pre-COVID-19 crisis level) or above Taking on loans and issuing corporate bonds to secure funds while maintaining a balance with EBITDA*Targeting a net interest-bearing debt/EBITDA multiple of 6x level(3-year total)
Redevelop Keihan areas

Cash flows fromoperating activities
130 bn. yen

Investment for growth
100 bn. yen

Approx. 70 bn. yen

Conserve the global
environment
Strategic investment capability
40 bn. yen

Funding and collection

Co-create experience value

Investment in maintenanceand renewal
60 bn. yen

Shareholder returns

Creating demand for railways
Developing and acquiring real estate
Strengthening the retail distribution
business
Value-added improvements of hotels

Approx. 30 bn. yen

Investment capability for on M&A, alliances, etc.
30

Quantitative Targets
Management
indicators

FY2023
forecast

FY2026
plan

Operating income

17.2 bn. yen

34 bn. yen

43 bn. yen or more

Profit attributable toowners of parent

16 bn. yen

23 bn. yen

30 bn. yen or more

37.4 bn. yen

58 bn. yen

70 bn. yen or more

Net interest-bearing debt
/EBITDA multiple

8.96x

6x level

6x level

ROE

6.2%

7% level

8% level

EBITDA(operating income + depreciation)

FY2031target level

31Plans in this document are based on current information and assumptions regarding uncertain
factors that may affect future business performance. Therefore, actual performance may differ
due to various factors that may arise in the future.