FY2009 Financial Results Presentation
Overcome the Recession andGo for Growth Again

May 19, 2009

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

General Overview ofPrevious Medium-term Management Plan "Jump 21"＜Consolidated Results＞(Billions of yen, %, times)

FY2007

FY2008FY2009267.2
21.2
7.8

261.9
17.4
8.3

260.7
14.6
7.4

Jump21
NumericTargets
264.8
19.8
8.0

ROA (Return on asset)
ROE (Return on equity)

1.4
5.7

1.5
6.2

1.3
5.7

1.4
5.0

Interest-bearing debt
Interest-bearing debt /EBITDA multiple
Equity Ratio
Capital investment

267.0

272.2

292.8

-

7.2

7.9

9.2

7.6

23.8
15.8

23.2
17.1

22.6
39.4

-Jump21

Operating revenue
Operating income
Net income

The numeric targets were not attained in the final year.
Nakanoshima line was successfully opened. However, the number of the passengers
fell below our expectation.
For real estate, retail and hotel, advance preparation for future growth has begun.

1Influence of Worldwide Recession
FY2009 Results (year-on-year)
Transportation Revenue
2.0%

4.0%

1.0%

2.0%

0.0%

0.0%

Sales of Keihan Department Stores(P)(Total of all stores)
15.0

Availability of Hotel Keihan Chain

10.0
5.0

-1.0%

Jun.
Jul.
Aug.
Se
pt.
O
ct.
Nov.
Dec.
Jan.
Feb.
M
arApr.
M
ayApr.

MayJun.

Jul.

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

-3.0%

Apr.

MayJun.

Jul.

Aug. Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

-10.0
-15.0

Including theinfluence ofthe leap year

-6.0%

-20.0

-4.0%
The entire Keihan line

0.0
-5.0

-2.0%

-4.0%

-2.0%

Mar.

-8.0%

-25.0

-10.0%-30.0
Universal City

Existing lines

Temmabashi

Kyobashi

Review management from both aspects of "Defense" and "Offense"and select what should be done to break out of the recession
as early as possible.
First, review the "ATTACK 2011" plan2KyotoMar.

The Keihan Group Medium-term Management Plan
From FY2010 to FY2012

Review “ATTACK 2011”

Basic Concept of "ATTACK 2011"

Basic Concept"Build up a Robust Management Base"capable of conquering the difficulties and"Realize the Growth for Our Vision" as early as possible.
Enforcement of Business Base (Defense)

Realization of Growth (Offense)

Review and restructure by distinction
and concentration of business andassets

Fortify competitiveness and maximize
cash flow with autonomous
management in respective businessgroupsPrioritize the business of real estate,retail and hotel, and concentrate ourmanagement resources on suchbusiness areasAggressively reorganize and integrate
the business for efficient management
Raise profitability and efficiency tothe fullest

Expand the area to be developed4

Especially Focused Measures
During the "ATTACK 2011"

GrowthGrowthDefense
DefenseRealization of Growth(Offense)◆ Promoting Area Strategies（Nakanoshima, Kyoto and Kuzuha）◆ Promoting M&A◆ Expansion by opening new retail stores and hotels･･･Keihan Department Suminodo Store (tentative name),
six urban-type supermarkets and five Hotel Keihan Chain hotels◆ Establishment of future revenue base ･･･Expansion of real-estate leasing serviceEnforcement of Business Base (Defense)◆ Distinction, elimination and consolidation of business◆ Promotion of efficiency measures ・・・Establishment of management system suited to the market demands andchain operation system

Enforcement of Core Business

Get Out of the Recession

Go for Growth Again

FY2010FY2011FY2012

5

Area Strategies◆ Improve Attractiveness of Keihan Area
To "Improvement of added value of domain area = 'Keihan (domain area) as First
Choice' for Customers"

Most Important Areas ：Nakanoshima, Kyoto and Kuzuha
Improve
Keihan Brand

Promote town-developing,
continuing to be selectedKuzuha

Kyoto・Form a sightseeing base bydeveloping the front of thestations (Sanjo, Arashiyama,and Kyoto Tower)
・Expand the traffic network

・Promote KUZUHA MALL second
stage plan

Hirakata-Koen
Improve area value

Nakanoshima

KorienKyobashiTemmabashi

Value-improving measures are also promoted for Temmabashi, Kyobashi, Hirakata Park and Korien as important area.

6

Area Strategies
Nakanoshima◆ Nakanoshima line opened on October 19
・The number of passengers fell below the initialexpectation.
（Factors）・Extension of sphere of train station to Nakanoshima peripheral area
Fell below expectations
・Transition from existing lines (Yodoyabashi station and Kitahama station)（Short-term）Promote PR activities to raise awareness of Nakanoshima line and create demand in collaboration withvarious events(Medium-to-long term）Increase demand through raising residential population in Keihan domain area, including
attractiveness improvement through developmentof the domain area
・Effect of the events held
Hikari-Renaissance：28.9% increase in average number of Nakanoshimaline passengers during the event period
Number of visitors: 1,380,500 (+20% year-on-year)
Also, the number of passengers at Nakanoshima station increased 1.5 to
1.8 times due to the opening of concerts at the Osaka InternationalConstruction Center etc.

7Area Strategies
Nakanoshima◆Expansion of Nakanoshima area
Naniwa-suji line (Planned)(Shin-Osaka to Namba andShiomibashi)

Cooperative development by Keihan
and Obayashi in Nakanoshima

Dojima River

Osaka Museum ofModern Art (Planned)

N4.TOWER
Cooperative development by Keihan
Dentetsu Real Estate Co., Ltd. andDaikyo Incorporated
Building structure：34 floors above
groundNumber of units for sale：343
Number of residents ： approx. 600
Move-in day：September 2009 (Planned)

Nakanoshima Line
(opened on October 19, 2008)

Nakanoshima Sta.

NAKANOSHIMA DAIBIRU

Plan Placetive name)Shin Nakanoshima Sta. (tentaNaniwa-suji line(Planned)

Construction of complex high-rise buildings
containing a luxury hotel, offices, andcommercial stores is planned.
Development area：5,480㎡
Scheduled opening：FY2013

NAKANOSHIMADAIBIRU WEST
(2013)

Osaka University
Nakanoshima Center

Building structure :35 floors above
ground and 2 floors underground
Completion：March 2009

City-owned
landCity-owned
land

The KansaiKandenBuilding
ElectricPowerBuilding

N4.TOWER
Nakanoshima Mitsui BuildingOsakaScienceMuseumNational Museumof Art

Tosabori River

Collaboration with events
SWATCH FIVE WORLD TOUR 2009 KEIHAN / SMFG JAPAN OPEN(From May 20 to 24)
The Louvre Museum Exhibition（From June 23 to September 23）
Cirque Du Soleil "Corteo" (July 29 to October 18)
Aqua Metropolis Osaka 2009 (August 22 to October 12) etc.

8

Aqua Metropolis Osaka 2009

Area Strategies
Nakanoshima
HukyanAwaji

Rlwaiay◆Induction effect from opening
Nakanoshima line

JR Toka

Shin-Osaka

ido line

AmagasakiDaimotsu

hinnsHa

Tenjimbashisuji
6-chome

Umeda
Kyobashi
HanatenNakanoshima
Line

Nishikujo

Temmabashi

Morinomiya

ImazatoShin-sakura jima

NambaeTsuruhashi
ka Loop
Lin

TaishoSakurajima
OsakakoTennojiTsurumachi

Osa

Bentencho

Shiomibashi

Also, development of Nakanoshimaeastern district including
Nakanoshima Park renewal,
Hachikenyahama Nigiwai (crowdedwith people) facility plan, isprogressing.

Juso

Naniwa-suji line

elinkasai-O
shNiayilw
Ra

Planning of Osaka Museum ofModern Art
Planning of Naniwa-suji line
(Providing direct access between
Umeda, Nakanoshima and Namba)

ozai
JR Tline

Development plan controlled
by government is progressing.

Minamitatsumi

Cosmosquare"New lines configuring the railway network are desirable for the medium and long term in Keihanshin area"from Kinki Council for Regional Transport’s report No. 8 (October 2004)

Recognizing that contribution to town-developing is a social mission for railway operatingcompany, we will endeavor to intensively commit to this contribution in future.
9Business Strategies
Transportation
Increase revenue and pursue efficient management
based on safe and secure public traffic service

Configure efficient management system with a view to the declining population in the future
Configure convenient traffic networks through cooperation of railway, bus and taxi services
Enrich the functions at the stations and services to increase revenue（Billions of yen）

FY2009FY2010FY2011FY2012

Results

Forecast

Plan

Plan

Operating revenue

86.6

86.2

87.2

87.7

Operating income

6.7

6.0

6.2

7.5

10

Go for a strong railway
in both management
and operation

Business Strategies
Real Estate
Go for growth in leasing, short-term turnover and urban
development, and establish a stable revenue base＜Leasing service＞
Acquire new favorably evaluated leasing buildings
Increase the value of retained properties by fortifying
the asset and property and facility business＜Sales＞
Reduce the stock of short-term turnover business andselect next business sites

Keihan Otemachi Building(To be renamed in June 2009)（Billions of yen）

FY2009FY2010FY2011FY2012

Results

Forecast

Plan

Plan

Operating revenue

33.4

37.0

41.2

44.8

Sales
Leasing service

18.7
15.7

21.1
16.9

24.1
19.2

25.4
21.6

Operating income

7.3

7.0

7.5

9.0

Sales

1.4
5.80.4
6.4

0.4
6.9

1.1
7.8

Leasing service

11Fine Garden Square

Fortification of managerial baseto achieve the vision

Business Strategies
RetailExpand the scale and go for highly profitable corporate group

Expand the sales scale and improve the gross margin rate
Open new shops and promote M&A and business tie-ups
Expand commercial property management businessOpening plan
Keihan Department Suminodo Store (tentative name)(To be opened in Autumn 2010）Urban-type supermarket ; six stores in total for three years（Billions of yen）

FY2009FY2010FY2011FY2012

Results

ForecastPlanPlanOperating revenue

103.9

102.5

133.1

140.0

Operating income

0.9

0.8

1.4

2.2

Operating income
margin

0.9%

0.8%

1.1%

1.6%

12

Keihan Department Suminodo Store(tentative name)

Expand the scale andpromote profitability forfurther growthBusiness Strategies
Leisure and Service
Organizing the management structure and base toextend "Superior Business Hotel" market
Hotel Keihan Asakusa

Aiming at“Ten hotels and 3,000 rooms.”

Opening Plan
Hotel Keihan Sapporo (Opened in June 2009)
Hotel Keihan Asakusa (To be opened in Autumn 2009)
Two hotels in FY2011 and one hotel in FY2012 (Planned)（Billions of yen）

FY2009FY2010FY2011FY2012

Results

ForecastPlanPlan

Operating revenue

37.6

40.5

44.7

47.2

Operating income

00.8

1.2

1.8

13

Configure chain hotel
system and attain theimprovement of revenue
and income

Numeric Targets
FY2009Results

FY 2012Targets

vs. FY2009

Consolidated operating
revenue

14.6 billion yen

20.7 billion yen

6.1 billion yen

25 billion yen

Consolidated EBITDA

31.8 billion yen

42 billion yen

10.2 billion yen

45 billion yen

0.6P

3.6%

ROA (Return on assets)

2.6%

3.2%

FY2012 Targets(announced in May 2008)

Profitability targeted as a result of the management plan
FY2009Results

FY 2012Targets

vs. FY2009

Consolidated net income

7.4 billion yen

8 billion yen

0.6 billion yen

10 billion yen

ROE (Return on equity)

5.7%

5.8%

0.1P

6.6%

Interest-bearing debt /EBITDA multiple

9.2 times

8.5 times(0.7P)

8.7 times

14

FY2012 Targets(announced in May 2008)Forecast of Consolidated Business Results(1) Company-wide

ATTACK 2011
FY2009Results

FY2010
ForecastFY2011
PlanFY2012
PlanOperating revenue

260.7 billion yen

260 billion yen

300.8 billion yen

314.6 billion yen

Operating income

14.6 billion yen

14.5 billion yen

16.3 billion yen

20.7 billion yen

Ordinary income

10.9 billion yen

8.9 billion yen

9.9 billion yen

13.9 billion yen

Net income

7.4 billion yen

5.3 billion yen

5.7 billion yen

8.0 billion yen

Net income per share

13.1yen

9.4 yen

10.1yen

14.2yenInterest-bearing debt at
end of fiscal year

292.8 billion yen

314.0 billion yen

337.8 billion yen

357.5 billion yen

Investments

39.4 billion yen

43.0 billion yen

50.4 billion yen

42.2 billion yen

EBITDA

31.8 billion yen

32.1 billion yen

36.4 billion yen

42.0 billion yen

9.2 times

9.8 times

9.3 times

8.5 times

22.6%

22.3%

21.3%

21.1%

Interest-bearing debt /EBITDA multiple
Equality ratio

15

Forecast of Consolidated Business Results(2) Segment（Billions of yen）

Operating revenue

Operating income or loss

FY2009FY2010FY2011FY2012

FY2009FY2010FY2011FY2012

Results

Forecast

Plan

Plan

Results

Forecast

Plan

Plan

Transportation

86.6

86.2

87.2

87.7

6.7

6.0

6.2

7.5

Real estate

33.4

37.0

41.2

44.8

7.3

7.0

7.5

9.0

Retail

103.9

102.5

133.1

140.0

0.9

0.8

1.4

2.2

Leisure and service

37.6

40.5

44.7

47.2

0

0.8

1.2

1.8

Others

15.0

10.1

11.0

11.9

(0.1)

(0.1)

00.2

Elimination(15.9)(16.3)(16.4)(17.0)

(0.1)

000

Total

260.7

260.0

300.8

314.6

14.6

14.5

16.3

20.7

(Billions of yen ）(Billions of yen)

600.0

50.0
Operating revenue

45.0

500.0

Operating income or loss

40.0
35.0

400.0

30.0
300.0

25.0
20.0

200.0

15.0

100.0
0.0
FY2009FY2010FY2011FY2012

Leisure and service

5.0

Retail0.0

Real estate

FY2021(5.0)

16

Others10.0

FY2009FY2010FY2011FY2012

FY2021

Transportation