First Half of FY2020(Ended September 30, 2019)

Financial Results Presentation
November 19, 2019
Keihan Holdings Co., Ltd.
(Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.co.jp/)

Table of Contents
 Summary of Consolidated Financial Results andForecasts… 2

 Progress Status of Medium-Term Management Plan
“Create Living, Community, and Excitement”… 4 Overview of the First Half of FY2020 Financial Results… 19 FY2020 Forecasts… 30◆Notes on forecasts◆
Descriptions of business forecasts and future prospects are based on current information and certain assumptions about factors that may affectfuture business.
Actual results may differ due to various factors that may arise in the future.

1

Summary of Consolidated Financial
Results and Forecasts

2

Summary of Consolidated Financial Resultsand Forecasts(Millions of yen)

1H FY2020 Results

1H FY2020
Results

1H FY2019
Results

Operating revenue

165,209

152,846

Operating income

21,96917,014

Ordinary income

21,435

16,297

Profit attributable toowners of parent

15,154

10,949Change12,362(8.1%)
4,954(29.1%)
5,138(31.5%)
4,205(38.4%)

1H FY2020(projections
released in May)

159,000
17,50016,80012,200Change5,809(3.6%)
4,469(25.5%)
4,635(27.6%)
2,954（24.2%)(Millions of yen)

FY2020 full-year FY2019 full-year
FY2020 full-year forecasts
forecasts
results

ChangeFY2020 (full-year
forecasts
released in May)

ChangeOperating revenue

325,000

326,159-1,159(-0.4％)

326,700-1,700(-0.5％)

Operating income

34,30033,715584(1.7％)

32,0002,300(7.2％)

Ordinary income

33,10032,108991(3.1%)

30,5002,600(8.5%)

Profit attributable toowners of parent

23,00021,4801,519(7.1%)

22,0001,000(4.5%)

3

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

4Overall structure of the long-term strategic concept
Keihan Group’s long-term
strategic concept

Management vision“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

2025

2026

Opening of IR (Integrated Resort)
G20 Osaka Summit
in Yumeshima, Osaka (planned)
Rugby World Cup
Expo 2025 Osaka, Kansai
Opening of USJ’s new area “SUPER NINTENDO WORLD™”

Transportation
network*Includes planned projects

Tokyo 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)

5

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 inbound businessmainly 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

Promote innovations with an eye to the next generation

 Focus on business development in Kyoto and contribute  Create services and improve productivity by utilizing ICT
to the re-creation of Kyoto
technologies
 Expand business to outside the areas along the Keihan  Promote new businesses
Railway lines (domestic and overseas growth markets)

6Create relatable
contents

BIOSTYLE-Aim for Keihan as First Choice Hotel (4F–9F)

Opening of the GOOD NATURE STATION
BIOSTYLE is a new lifestyle proposed by the KeihanGroup, aimed at achieving a healthy, beautiful, andhigh-quality life and contributing to a recycling-oriented
society.
In recent years, there has been a new trend in
consumers’ lifestyles focused on health, ethics andvalues. In light of this, the GOOD NATURE STATION
will open on December 9, 2019 in Shijo-Kawaramachi,
Kyoto City as a facility that embodies BIOSTYLE withfood, beauty and accommodation.
To Demachiyanagi

Kyoto Kawaramachi Sta.
Hankyu Railway

GOOD NATURESTATION

Takase River

Kawaramachi-doriTakashimaya,
Kyoto store

The guest rooms feature aninterior focused on natural wood,as well as lights that automaticallyadjust their brightness inaccordance with biological rhythm.

•

No. of guest rooms: 141 (120 twinrooms and 21 double rooms)

 Studio (3F)
•
•

Kamo
River

The Kyoto
Residence
To Yodoyabashi,
Nakanoshima Launch of e-commerce
The GOOD NATURE STATION ONLINE,an e-commerce website handling our original
brands, will be launched when the GOOD NATURESTATION opens.

Houses a comprehensive beauty salon themed with “vitality”
and “rejuvenation” and a shop area
handling cosmetic-related items.
We will enter the SPA business todevelop unique brands and products.

 Gastronomy (2F)•

Shijo-dori
Kyoto
Marui

•

The “premium gastronomy floor”
where customers can have a special
eating experience, feeling the four
seasons with their five senses. This
will be made possible by ourthorough pursuit of ingredients.

 Market (1F)••The floor concept is the “market
restaurant” filled with the joy ofeating.
Features our original food brandthat meets a wide variety of foodrelated needs.

7Redevelop
Keihan areas

Regaining the glory of Osaka’s east to west axis

Growth pole development in Yodoyabashi
Keihan Midosuji Building and Nittochi Yodoyabashi
Building (owned by NIPPON TOCHI-TATEMONO Co.,
Ltd.) will be jointly reconstructed after integration of
the premises.
It will be a magnificent building that will serve as agateway to Midosuji Street and a landmark of
Yodoyabashi.

Current status of Keihan
Midosuji Building and its
surrounding

In addition to high-standard offices, commercial
facilities will be invited to lower floors, including theunderground part directly connected to Yodoyabashi
Station.
Multi-purpose square featuring a
4-story atrium

Bank of Japan
Osaka Branch

New building (image)

Osaka Metro
Midosuji Line
Midosuji St.

Dojima River

Oebashi Sta.

Osaka City Hall

Nakanoshima
Library

Tosabori River

Yodoyabashi Sta.

Yodoyabashi Sta.

 Overview of the plan Nearest station: Directly connected to Yodoyabashi Stationof Keihan Railway and Osaka Metro
Midosuji Line Total floor area: Approx. 73,600 m2
 Size: Height:

28 floors above ground,
4 floors below ground

Approx. 150 m

NittochiYodoyabashi
Bldg.

KeihanYodoyabashi Bldg.

Project Area
KeihanMidosuji Bldg.

Schedule
2020

Demolition of existing building starts

2022

Construction of new building starts

2025

Completion

8

Redevelop
Keihan areas

Growth pole development in the areas
along the Keihan Railway lines

USJ

Community building starting from railway stations

Nakanoshima

Yumeshima(Potentialsite for IR)

Yodoyabashi

KyobashiTemmabashi

Chushojima

Hirakatashi

Hirakatashi

The area will be developed as a global hub for
business, cultural, and academic exchanges.
We were selected as a preferred bidder regarding thedevelopment of the International Hub for Medical
Innovation organized by Osaka City.

 Draft plan of facility•

Name of facility:
Nakanoshima Multi-linkS•

Scheduled completion:
October 2023•

Total floor area:
Approx. 58,000 m2

•

Size:
17 floors above ground

Demachiyanagi

Major growth pole stations

Osaka’s east to west axis

Nakanoshima

Sanjo

December 2018
• The Hirakatashi Station Area Urban Redevelopment
Preparation Association was established.
October 2019
• The urban redevelopment plan for the redevelopment
area including the “delta land” owned by Keihan Holdings
was formulated.
FY2026• Project to be completed
Traffic
square inBlock A
front of the (Approx. 6,500 m2)
station
Hirakatashi Sta.

The International Hub for
Medical Innovation (image)

Block B
(Approx. 15,200 m2)

A partial rework of the briefing on the Redevelopment Project ofType 1 Urban Area around Hirakatashi Station (Hirakata City)

Redevelopment area (image)9

Co-create
tourism opportunity

Strengthen tourism andinbound business mainly in Kyoto

Encouraging visitors to tour aroundthe Mt. Hiei and Lake Biwa area
 Tourism MaaS demonstration experiment
Eizan Cable Car& Ropeway

By examining how MaaS can contribute to improving convenienceof intraregional transportation, attracting tourists and encouraging
them to tour around the area, we aim to promote measures torevitalize this area.

Sakamoto
Cable Railway• A council involving Otsu City, Keihan
Holdings, Keihan Bus and Nihon Unisys
was established• Experiment period: Nov. 1 to Dec.1

Mt. Hiei

Demachiyanagi

Keihan Railway(Keishin Line
Ishiyamasakamoto Line)

Sanjo

•
Lake
Biwa

 Demonstration experiment of self-driving shuttle
bus services in Otsu City•

We are engaged in a feasibility study (until FY2021) for thepractical operation of self-driving buses to secure means oftransportation for elderly people, offer secondary transportation
for tourists, and provide a solution to the severe problem ofdriver shortage.

•The bus ran at Autonomous Driving Level
4 (High Driving Automation) in some areas.

Shichijo
●
JR
Kyoto

 Eizan Railway’s “Hiei” wins the Laurel Prize•“Hiei” is a tourist train
launched in 2018.

HIEIZAN Free Wi-Fi: 20 hotspots available(From October onwards)

Experiment period: Nov. 2 to 8
（Second time following March)
An experiment of over 3 months is planned in
FY2021 using midsize self-driving buses.

10

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

Getting ready to welcome inbound tourists* Inbound revenue is on the right axis. (JPY100 million)(Index)130

Inbound revenue (Keihan Electric Railway)
インバウンド収入（京阪電気鉄道）
Keihan Electric Railway
京阪電気鉄道Eizan Electric Railway
叡山電鉄
Keifuku Electric Railroad
京福電気鉄道

120

20

15

110

10

100

5

90

0
FY20142013

FY20152014 FY2016
2015 FY2017
2016 FY2018
2017 FY20192018 FY2020
2019 FY2021
2020(Forecast) (Target)(予想) (目標)◆ Establishment of a tourist information center at
Kitahama Station• In recent years, Kitahama Station has been used byan increasing number of transfer passengers(including inbound tourists) from Osaka Metro
Sakaisuji Line.
• An information center will be newly established toserve as a gateway for tourists coming from KansaiInternational Airport or Osaka city to the Keihan areas
such as Higashiyama in Kyoto.
• Operation will be commissioned to“Huber.” a company experienced in
the operation of tourist information
centers.
• Face-to-face guidance, guided
tours, and a luggage storage
service will be provided.
• To be opened in February 2020.

Kitahama Tourist Information
Center (image) Special passes for inbound tourists• Sales of special passes
for inbound tourists(including those combinedwith special passes ofother companies) havegrown steadily since thelaunch in August 2015.
* FY2014 = 100(Index)

Sales performance
SIGHTSEEING PASSFY2016 FY2017 FY2018* FY2016 = 100

FY202011Initiatives in the transportation business
Enhancing transportation network
Kinkakuji
Ryoanji Temple

The station is a transportation hub in northwest Kyoto, directly
connected to the Arashiyama area and close to Kinkakuji Temple andKitano Tenmangu Shrine.
• By unifying the station and the bus stop, we will be able to improveconnection with bus services and specify an access route from the
Arashiyama area to the Kinkakuji Temple area.
• Creation of a barrier-freestation• To be completed in March 2020

TempleNinnaji
TempleKitano Line

Arashiyama Arashiyama Line

Keifuku Railway(Randen)• The system was introduced by August 2018 between
Hirakatashi and Demachiyanagi stations, as well as on
the Uji Line and the Katano Line.
• It has also been in service between Moriguchishi and
Hirakatashi stations since October 2019.
• It will cover the entire Keihan Line in FY2021.
Securing a higher level of safety and strengthening emergency
response function

Kitano- DemachiHakubaicho yanagi
KitanoTenmangu
ShrineShijoOmiya

Sanjo

Kyoto Tower

Upgraded Kitano-Hakubaicho
Station (image)

Initiatives toward safety and security
 Introduction of a multiple information
continuous control ATS system in Keihan
Railway

Eizan Railway

Keihan Railway

 Upgrade of Kitano-Hakubaicho Station on the
Keifuku Railway (Randen) Kitano Line

JR Kyoto Further enhancement of safety atrailway crossings• Railroad crossing alarm system:
To be installed on the entire Keihan Line in
FY2020• Trial operation of therailroad crossing
obstacle detecting
device supported by
2D laser radar
The railroad crossing obstacle detecting
device now under trial operation

12

Initiatives in the real estate businessParticipation in the Kyomachiya
traditional houses renovation project
By acquiring or renting Kyomachiya in Kyoto City andrenovating them, we will advance the conservation andutilization of Kyomachiya, pass down the history,
tradition and culture of Kyoto to the next generation,and contribute to local communities.
We will focus on the business to utilize existing housing
stock and enhance our business lineup.

Launch of serviced office business
Utilizing buildings and facilities owned by the KeihanGroup, we started the serviced office business to meet
diverse needs for office spaces.
We will offer many different development menus andcontents and seek the enhancement of profit
opportunities by utilizing a wide variety of real property.

 The first “inheritance” project to renovate
Kyomachiya• A Kyomachiya that once was a dry food shop wasrenovated as an accommodation facility.
Business lounge• Name:ServiceOffice W Kyoto-ekimae• Opening date:November 1, 2019
• Nearest station:
5 minutes on foot from
JR Kyoto Station
ラウンジオフィス（イメージ）

Expand business areas

Exterior of the facility• Name:• Opening date:• Nearest station:

Yadoru Kyoto Matcha No Yado
November 1, 2019
5 minutes on foot from
JR San-in Main Line
Umekoji-Kyotonishi Station• No. of guest rooms: 4 (2 to 6 persons per room)

•
•
•
•

Name:
Toranomon Hills Business Tower
Scheduled completion: December 2019
Location:
Minato-ku, Tokyo
Total floor area: Approx. 173,000 m2(* Partially owned)

•
•
•
•

Name:
CENTURY DIAMOND TOWER
Completion date: November 15, 2019
Location:
Manila, Philippines
Total floor area: 60,413 m2 (* Partially owned)

13

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

FINE City Shin-Koshigaya

Koshigaya City

179

GRAN ARENA RESIDENCE

Yamato City

604*

THE HIGH HORIE

Osaka City141

THE FINE TOWER OTEMAE

Osaka City

241

Chiba Inage-ku Project

Chiba City

103

Sapporo Nishi-ku Project

Sapporo City

72*

Ishigaki Arakawa Project

Ishigaki City84

◆ New brand for the compact urban

condominium “THE HIGH”
Newly built compact urban
condominium suggesting new standards
for lifestyles in the middle of big cities
Offers convenience in the city center,high-ceilinged spacious rooms, and aquality lifestyle

Scheduled delivery in FY2021

Scheduled delivery in FY2022* 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.

14

Initiatives in the retail distribution business
Renovation of a suburban commercial
facility Upgrade of Racto Yamashina Shopping
CenterExpansion of commissioned property
management business Engagement in commissioned property
management for PASSAGGIO NISHIARAI

We invited MUJI as a new tenant of the entire threefloors of the former Daimaru Yamashina Store site.

In June 2019, we started commissioned property
management of a shopping center in Tokyo.

Partnering with Ryohin Keikaku Co., Ltd, a company
that values connection with the shop’s surroundingarea, we have renovated a suburban commercial
facility that was once supported by a department store.

This is an onsite project at a shopping center. We willcontinue our efforts to enhance business in the Kanto
area.
• Nearest station:
1 minute on foot from Tobu
Skytree Line Nishiarai Station• Total floor area: 21,996.9 m2• Size: 4 floors above ground,
1 floor below ground

It is a new shop with the theme of cooperation with thecommunity, equipped with a large, specialized shop
area focused on food.

Expansion of the Ekinaka (in-station)business to outside the Keihan areas
 SWEETS BOX• Name:MUJI Keihan Yamashina• Opening date:November 1, 2019
• Nearest stations: Keihan-yamashina Station (Keihan
Railway Keishin Line), Yamashina
Station (JR & Kyoto Municipal Subway)• Sales floor area: Approx. 4,000 m2• Size:2 floors above ground, 1 floor
below groundThe shop offers sweets from different places for a limited
time only. A new shop was opened in Odakyu Railway
Noborito Station in November. Thirteen shops areoperating in the Kanto area.

 Juicer Bar
The juice stand serves freshly squeezed juice. A new
shop was opened in Odakyu Railway Machida Station in
September. Eight shops are operating in the Kanto area.

15

Initiatives of the Leisure and Service business
THE THOUSAND KYOTO
In January 2019, THE THOUSAND KYOTO was
opened near to Kyoto Station as the highest-classbrand hotel of the Group.
We will promote the branding strategy while
maintaining the high price range, and enhance thehotel’s visibility to increase its occupancy rate.

Enhancing capabilities of existing hotels• We are promoting cooperation with agencies toattract an increasing number of inbound tourists from
China and Western countries.
Survey on inbound tourists who stayed in Kyoto City (2018)

Joined the Preferred Hotels & Resorts to further enhance
visibility and brand recognition in the global market•

First-class service offered by staff, including a sommelier who
won the All-Japan Best Sommelier Competition in 2017•

Hosted a business meeting to attract inbound tourists•

Participated in the tour expo to enhance visibility outside ofJapan

YoY (P)

China

27.7

2.7

1

2

Taiwan

14.0

-3.7

3

United States

13.0

0.2

4

Korea

5.4

-0.1

5

Australia

4.3

-0.1

6

Hong Kong

3.8

-1.0

1

[Marketing efforts]
•

%

2018

%

2017

China

25.0

2

Taiwan17.7

3

United States

12.8

4

Korea

5.5

5

Hong Kong

4.8

6

Australia

4.4

Source: Kyoto City Tourism Association• Promotion of work-style reform
supported by IoT and cost management•

Introduction of automated checkin/check-out machines in Hotel
KeihanHotels opening soon 2020•Hotel Keihan Kyoto Station South(200 rooms)
Nagoya (259 rooms)
Sendai (200 rooms)

 2021
Received Good Design Award 2019•

Hotel Keihan Shin-Temmabashi(300 rooms)

Kyoto Station South(image)16

Progress status of major strategic investment projects
Medium-Term Management Plan

(Fiscal year)
2018

2019

2020

Reconstruction of
Establishment of the
Yodoyabashi Midosuji urban development plan ○Bldg.

Co-create
tourism
opportunity

Redevelopment of thearea around
Hirakatashi Station
Regaining the glory of
Osaka’s east to west
axis

Demolition work

○ be started

2023

Construction work to

2024

2025

2026

Completion ●Opening of the International Hub
for Medical Innovation ●Launch of theEstablishment of theurban development plan ○○ redevelopment project

Opening of the“delta land” ○Project to becompleted ●Redevelopment of the area around Kyobashi Station,
extension of the Nakanoshima LineTHE THOUSAND
KYOTO● Opening of the THE THOUSAND KYOTO

Redevelopment of the areas
around Sanjo, Demachi-yanagi
and Chushojima Stations

Create relatable Promotion of
BIOSTYLE
contents● Opening of the GOOD NATURE STATION, e-commerce launch● Introduction of the 3000 series

Premium Car

Each businesssegment

2022○ to be started

Redevelopment of
Nakanoshima
Redevelop
Keihan areas

2021

Toranomon Hills
Business Tower
Improving thevalues of stores
Increasing hotel
openings

Opening●● Upgrade of Racto Yamashina

FREST MatsuiYamate Shop

KEIHAN

Kyoto
Hachijoguchi ●Tsukiji Ginza●
Tokyo Yotsuya●

Kyoto Station
●
South

●

● CITY MALL
Nagoya● Sendai● Shin-Temmabashi●* Strategic investment of JPY100 billion is allocated for use in the three years covered by the MediumTerm Management Plan. We have decided the specific use of approximately 70% of the fund.

17

Initiatives in ESG
E (Environment)

S (Society)

G (Governance)

Contribution to global warming prevention

Contribution to sustainable developmentof local communities

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.

• We will discover and introduce new appealsof Kyoto from local
perspectives (hands-on
harvesting tours infarms near Kyoto, etc.).

GOOD NATURE STATION• The facility is planning toobtain LEED certification(a global certification forgreen buildings) and
WELL Building Standard® certification withregard to wellness (to be
the first hotel in theworld to obtain the
WELL certification).

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

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

Conservation of thesatoyama
environment• Promoting active employment of people withdisabilities
Established Keihan Smile Heart Co., Ltd. in2017• Approach toward a healthy company

Announced the “Health Declaration” in 2018

• Promotion of diversity management

Participated in the personnel exchange
program “Mintetsu Career Train” with othermajor private railway companies

Management
Meeting

Representative
director,
COO

Directors meeting

Accounting
audit
Keihan GroupCSR Committee
ReportCooperation

Audit & Internal
Control Office

Accounting auditor

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

Representative
director,
CEO

Audit

Technical committee on
information Security

Meals

ReportReport Report

Technical committee on
environmental management

Food
waste

3 directors(including 2 outside
directors)

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

13 directors (including 5 outside directors)
Supervision,
appointment& dismissal

Appointment& dismissal

Audit Supervisory Committee Cooperation

Board of Directors

Recommendation

Statement of
Opinions, etc.

Appointment & dismissal
Audit & supervision

Consultation

Technical committee oncompliance and crisis/riskmanagement

Agricultural
products

Nomination &Compensation
Advisory
Committee

Internal Control Committee

Fertilizer

We will make every effort to improve safety anddevelop human resources by formulating a
medium-term plan for safety and security.
We have been implementing safety
improvement measures including introductionof the multi-information continuous control ATS
system. We have also carried out drills against
disasters and accidents on a continuous basis.

Shareholders’ meeting
Appointment & dismissal

Establishment of internal control systems• We aim to realize
recycling agriculture by
installing composters in
the facility and using
food waste as fertilizer.

Provision of value trusted by customers
such as “safety and security”• Initiatives of Keihan Railway to improvesafetyAudit &
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 oncompliance18Overview of the First Half of FY2020

Financial Results

19Consolidated Statements of Income• In the real estate business, sales of high-end condominiums have been robust. Revenue from the transportation
business also increased due to a reactionary rise after the natural disasters in the same half term of the previous year
and a rise in the number of tourists to the Kyoto area. Thus both revenue and profits increased.
(Millions of yen)

1H FY2020
Results

1H FY2019
Results

Operating revenue

165,209

152,846

Operating income

21,96917,014

1,091

1,064

26

1,625

1,782

-157

21,435

16,2975,138(31.5%)

2,455

894

1,560

1,166

453

712

Profit attributable toowners of parent

15,154

10,9494,205(38.4%)

Depreciation

10,035

9,605

429

EBITDA

32,004

26,6205,384(20.2%)

Interest and dividend
income

580

602

-21

Interest expenses

1,143

1,219

-75

Net interest expenses

-562

-616

54

Non-operating
incomeNon-operating
expenses
Ordinary income
Extraordinary
incomeExtraordinary
lossesChangeMain factors of changes

12,362(8.1%)
4,954(29.1%)

1H FY2020(projections
released in May)

159,400
17,500Change5,809(3.6%)
4,469(25.5%)

16,8004,635(27.6%)

12,2002,954(24.2%)

Compensation income +1,093
Loss on reduction of non-current assets+807* EBITDA: Operating income + Depreciation

20

Segment Information
1H FY2020
Results(Millions of yen)

1H FY2019
Results

Change (%)

ChangeOperating revenue

48,70946,863

1,845

3.9%

Operating income

8,141

6,414

1,727

26.9%

Operating revenue

58,66350,733

7,930

15.6%

Operating income

10,248

7,264

2,984

41.1%

Operating revenue

48,19547,625570

1.2%

Operating income

1,579

1,150

428

37.2%

Operating revenue

17,96015,009

2,950

19.7%

Operating income

1,788

2,097

-309

-14.7%

Operating revenue

956

921

34

3.8%

Operating income

-4

-10

5



Operating revenue-9,275-8,307-968

Operating income

216

98

118



Transportation

Real estate

Retail distribution

Leisure andservice

OthersAdjustments

21

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 Railway Co., Ltd., Keihan Bus Co., Ltd., and 12 other companies

Real estate

Keihan Holdings Co., Ltd., Keihan Dentetsu Real Estate Co., Ltd., Zero 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 other 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 revenue by segment>
Leisure and Service
JPY17.9 billion(10.3%)

Retail distribution
JPY48.1 billion(27.6%)

Others
JPY0.9 billion(0.6%)

Transportation
JPY48.7 billion(27.9%)

Real estate
JPY58.6 billion(33.6%)<Operating income by segment>

Leisure and Service
JPY1.7 billion(8.2%)
Retail distribution
JPY1.5 billion(7.3%)

Others
JPY-0 billion (-0.0%)

Transportation
JPY8.1 billion(37.4%)

Real estate
JPY10.2 billion(47.1%)

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

22

Segment Information (Transportation)(Millions of yen)

1H FY2020 Results

1H FY2019 Results

Operating revenue

48,70946,863

1,845

3.9%

Railway

39,41638,061

1,354

3.6%

Bus

14,193

13,736457

3.3%

Elimination-4,900-4,93433

Operating income

8,141

6,414

1,727

26.9%

Railway

6,661

5,537

1,123

20.3%

Bus

1,470

871

599

68.8%

10

6

4



Elimination

ChangeChange (%)(Major factors affecting performance)• The railway business saw increases in both revenue and profits since Keihan Electric Railway recorded an increase in non-commuter passpassenger revenue due to a reactionary rise after the natural disasters in the same half term of the previous year and a rise in the number oftourists to the Kyoto area.
• The bus business saw increases in both revenue and profits due to revenue increase from vehicle improvement work, a rise in the number ofusers of the Kansai International Airport route (limousine bus), and reduced personnel expenses.

23

Operating Results for Transportation Keihan Electric Railway

1H FY2020 Results

1H FY2019 Results

Millions of yen

Millions of yen

Millions of yen%

Passenger transportation
revenue

26,71025,849860

3.3

Non-commuter passes

17,913

17,305608

3.5

Commuter passes

8,796

8,544

252

3.0

Thousands of people

Thousands of people

Thousands of people%

152,834

148,390

4,444

3.0

Non-commuter passes

76,09373,9022,191

3.0

Commuter passes

76,74074,4872,253

3.0

Number of passengers

ChangeChange (%)(Major factors affecting non-commuter pass passenger revenue)• Reactionary rise after natural disasters in the same half term of the previous year (+JPY304 million); rise in the number of tourists to the Kyoto
area (+JPY156 million); Premium Car and Liner services (+JPY66 million)(Major factors affecting commuter pass passenger revenue)• Advance purchase of commuter passes before the consumption tax rate hike (+JPY192 million)

24

Segment Information (Real estate)
1H FY2020
Results(Millions of yen)

1H FY2019
Results

ChangeChange (%)

Operating revenue

58,66350,733

7,930

15.6%

Real estate

51,12443,902

7,222

16.5%

Real estate sales

37,51531,608

5,907

18.7%

Real estate leasing service

11,793

10,581

1,212

11.5%

Other businesses

1,815

1,713

102

6.0%

Construction

10,626

9,885

741

7.5%

Elimination-3,088-3,054-33

Operating income

10,248

7,264

2,984

41.1%

Real estate

10,133

7,433

2,700

36.3%

Real estate sales

4,356

2,398

1,958

81.6%

Real estate leasing service

5,555

4,846

709

14.6%

Other businesses

221

188

32

17.4%

Construction

181

-119

300



Elimination

-66

-49

-16



(Major factors affecting performance)• The real estate sales business saw increases in both revenue and profits due to robust sales of high-end condominiums as well as sales of abuilding for business use.
• The real estate leasing service saw increases in both revenue and profits due to full-year contribution of properties obtained in the previous fiscal
year.
• The construction business saw increases in both revenue and profits due in part to the receipt of large-scale construction orders.

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

1H FY2020
Results

Operating revenue

1H FY2019
Results

ChangeChange (%)

48,19547,625570

1.2%

Department store

24,201

23,326

875

3.8%

Store

14,954

15,105

-150

-1.0%

Shopping mall management

7,357

7,275

82

1.1%

Others

3,935

4,004

-69

-1.7%

Elimination-2,253-2,086-167



Operating income

1,579

1,150

428

37.2%

Department store

138

-221

360



Store

292

457

-164

-36.0%

Shopping mall management

1,019

827

191

23.1%

Others

120

81

38

47.8%

7

5

2



Elimination(Major factors affecting performance)• Department stores saw increases in both revenue and profits due to robust sales of cosmetics on the back of inbound demand.
• Stores saw decreases in both revenue and profits due to difficult conditions in the store business and the impact of store closure in the previous
fiscal year.
• Shopping mall management saw increases in both revenue and profits due to the renovation of KEIHAN CITY MALL and a review of expenses.

26

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

1H FY2020 Results

1H FY2019 Results

17,96015,009

2,950

19.7%

Hotel

15,838

12,838

2,999

23.4%

Leisure

2,136

2,185

-48

-2.2%

Elimination

-14

-13

-0



Operating income

1,788

2,097

-309

-14.7%

Hotel

1,576

1,817

-241

-13.3%

Leisure

202

268

-65

-24.5%

9

10

-1



1H FY2020 Results

1H FY2019 Results

93.0%

94.0%

-1.0 pt* 86.8%89.4%-2.6 pt

Operating revenue

Elimination

ChangeChange (%)<< Hotel occupancy rates >>Hotel Keihan
Keihan Hotels & Resorts

Change* Occupancy rates excluding THE THOUSAND KYOTO, which commenced operation in January 2019, stood at 94.2%.
(Major factors affecting performance)• The hotel business saw revenue increase due to the contribution of new hotels such as THE THOUSAND KYOTO, which commenced operationin the previous fiscal year. However, profits decreased partly due to the impact of intensifying price competition among hotels around Kyoto
Station.
• The leisure business saw decreases in both revenue and profits partly due to the impact of suspension of operation of a golf course associatedwith its renovation.

27

Consolidated Balance Sheets(Millions of yen)

1H FY2020
Results

FY2019Results

ChangeMain factors of changes
Notes and accounts receivable
Cash and deposits-8,418-4,368Construction in progress
Buildings and structures+4,214-4,068-27,658

Short-term loans payable
Current portion of bonds-10,356-10,003

314,744

1,330

Long-term loans payable+1,613466,726

493,055-26,328

Net assets

251,791

238,695

13,096

Total liabilities and net
assets718,518

731,750-13,232

Interest-bearing debt

316,570

334,346-17,776

Current assets

166,257

180,080-13,823

Non-current assets

552,261

551,669591

718,518

731,750-13,232

Current liabilities

150,652

178,310Long-term liabilities

316,074

Total liabilities

Total assets

Retained earnings* Equity capital ratio

Bonds
Loans payable+13,276
34.5% (+2.4 pt)-10,032-8,743* Interest-bearing debt: Loans payable + bonds + short-term bonds

28

Consolidated Statements of Cash Flows(Millions of yen)

1H FY2020
Results

1H FY2019
Results

Cash flows from operating
activities

28,197

17,225

10,972

Decrease in inventories+6,713

Cash flows from investing
activities-12,379-17,000

4,621

Decrease in purchase of non-current assets+3,817

Cash flows from financing
activities-20,187-3,854-16,332

Decrease in proceeds from issuance of bonds
Decrease in short-term loans payable-9,922-8,069Net increase (decrease) in cash
and cash equivalents-4,368-3,629-739

Cash and cash equivalents at
beginning of current period

21,377

20,300

1,076

Cash and cash equivalents at endof fiscal period

17,00916,671

337

ChangeMain factors of changes

29

FY2020

Forecasts

30

Consolidated Statement of Income (Performance Forecast)• Initial projections are expected to be achieved regarding profits at each stage due to robust sales of condominiums and a review of expenses,
despite the expected revenue decrease caused by intensifying price competition in the hotel business and difficult conditions in the store
business.

(Millions of yen)

New FY2020 full- FY2020 full-year
forecasts
year forecasts released in May

ChangeChange (%)

FY2019 full-year
results

ChangeChange (%)

Operating revenue

325,000

326,700-1,700-0.5%

326,159-1,159-0.4%

Operating income

34,30032,000

2,300

7.2%

33,715584

1.7%

Ordinary income

33,10030,500

2,600

8.5%

32,108991

3.1%

Profit attributable to ownersof parent

23,00022,000

1,000

4.5%

21,480

1,519

7.1%

Capital expenditure

49,20055,200-6,000-10.9%

43,631

5,568

12.8%

Depreciation

21,00021,200

-200

-0.9%

19,819

1,180

6.0%

EBITDA

55,30053,200

2,100

3.9%

53,535

1,764

3.3%

Interest-bearing debt

359,000

375,000-16,000-4.3%

334,346

24,653

7.4%

6.49

7.05

-0.56



6.25

0.25



6.13

6.67

-0.54



5.85

0.28



986

846

140

16.6%

937

49

5.3%

Interest expenses

2,212

2,266

-53

-2.4%

2,401

-188

-7.9%

Net interest expense-1,226-1,420194

-1,463237

Interest-bearing debt/
EBITDA multiple (Times)
Net interest-bearing debt/
EBITDA multiple (Times)
Interest and dividend income31Segment Information (Performance Forecasts)(Major factors affecting forecasts: compared to forecast released in May)
• Transportation business: Drop in power and repair expenses• Real estate business: Robust sales of condominiums• Retail distribution: Difficult conditions in the store business• Leisure and service: Intensifying price competition in the hotel business(Millions of yen)

FY2020 full-year
New FY2020 fullforecasts released
year forecasts
in MayFY2019 full-year
results

ChangeChangeOperating revenue

95,10094,600500

93,926

1,173

Operating income

11,60010,4001,200

11,221

378

Operating revenue

110,200

108,100

2,100

118,607-8,407

Operating income

17,10014,9002,200

17,468-368

Retaildistribution

Operating revenue

100,400

101,500-1,10098,727

1,672

Operating income

3,500

3,600

-100

2,923

576

Leisure andservice

Operating revenue

35,50038,100-2,60030,621

4,878

Operating income

3,300

4,300

-1,000

1,817

1,482

Operating revenue

3,500

3,500



1,843

1,656

Operating income

-400

-400



-57

-342

Operating revenue-19,700-19,100-600-17,567-2,132

Operating income

-800

-800



342

Transportation
Real estate

OthersAdjustments-1,142 32

Operating Results for Transportation(Performance Forecasts) Keihan Electric Railway

New FY2020 full- FY2020 full-year
forecasts
year forecasts released in May

ChangeChange (%)

FY2019 fullyear results

ChangeChange (%)

Millions of yen

Millions of yen

Millions of yen%

Millions of yen

Millions of yen%

Passenger
transportation revenue

52,65052,650－－52,054595

1.1

Non-commuter
passes35,51835,705-187-0.5

35,187330

0.9Commuter passes

17,132

16,945187

1.1

16,866265

1.6

Thousands ofpeopleThousands ofpeopleThousands ofpeople%Thousands ofpeopleThousands ofpeople%Number of passengers

298,037

297,490547

0.2

295,099

2,937

1.0

Non-commuter
passes150,535

151,509

-974

-0.6

149,795739

0.5Commuter passes

147,502145,981

1,521

1.0

145,304

2,197

1.5

33

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

New FY2020 fullyear forecasts

FY2020 full-year
forecasts releasedin MayCapital Expenditure

49,20055,200-6,00043,631

5,568

Transportation

15,90018,300-2,40014,6091,290

Real estate

16,30018,800-2,50026,080-9,780Retail distribution

1,800

2,300

-500

1,428

371

Leisure and service

2,000

2,300

-300

3,364

-1,364

Others

1,500

1,500



9

1,490

Adjustments

11,70012,000-300-1,86013,560FY2019 full-year
results

ChangeChange34

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

New FY2020 fullyear forecasts

FY2020 full-year
forecasts releasedin May55,30053,2002,100

53,535

1,764

Transportation

23,40022,3001,100

23,119280

Real estate

23,10021,1002,000

22,666433

Retail distribution

4,800

4,900

-100

4,230

569

Leisure and service

4,800

5,700

-900

2,933

1,866

Others

-300

-300



-20

-279

Adjustments

-500

-500



605

-1,105

EBITDAFY2019 full-year
results

ChangeChange35