FY2015(Fiscal year ended March 31, 2015)

Financial Results Presentation

May 14, 2015
Keihan Electric Railway Co., Ltd.
(Tokyo Stock Exchange 1st / Securities Code: 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.

Overview of FY2015
Financial Results

Consolidated Statements of Income(Millions of yen)

FY2014
Results

FY2015Results

Operatingrevenue

289,203294,906

5,702

Operatingincome25,08529,437

4,352

Ordinary
income21,45727,435

Change(2.0%)(17.4%)

5,978(27.9%)

3,444

Main factors of changes

October
2014
Estimate

Transportation +679, Real estate +1,275, Retail +1,233,
Leisure and service +2,337, Others +1,612

286,400

Transportation +1,158, Real estate +180, Retail +742,
Leisure and service +2,146, Others -31

24,300Non-operating income +1,231 (Equity in net income of affiliates +1,177,
Dividends income +75)
Non-operating expenses -394 (Interest expenses -345)

21,100Extraordinary income +18,473 (Contribution for construction +18,416,
Gain on sales of fixed assets +556)
Extraordinary losses +20,577 (Loss on reduction of fixed assets+17,575,
Impairment loss +1,620)

15,00014,42017,864

ROA

3.8%

4.4%

0.6pt

ROA: Operating income to total assets

-

ROE

8.9%

10.1%

1.2pt

ROE: Net income to shareholders’ equity-

EBITDA

41,68846,545

4,856

EBITDA: Operating income + Depreciation

Depreciation

16,603

17,107

Capitalexpenditures

31,17915,878Net income(23.9%)(11.6%)

504

41,50017,200(3.0%)-15,301

24,900(-49.1%)[Changes in scope of consolidation and application of the equity method (from the previous fiscal year end)]
Consolidated subsidiaries: 40 companies (+ 3 companies): new 3 companies -Keihan Engineering Service Co., Ltd. (company split), Keihan Asset Management Co., Ltd. (establishment), andBiomarket Co., Ltd. (new acquisition of stocks)
Equity method affiliates: 2 companies (no change)2Consolidated Balance Sheets(Millions of yen)

FY2014
Results

FY2015Results

ChangeMain factors of changes
Land and buildings for sale +18,167,
Notes and accounts receivable +6,289
Construction in progress -24,797, Land -12,743,
Buildings and structures -2,817, Investment securities +8,789

Current assets

147,216

171,449

24,232

Fixed assets

523,965492,787-31,177

671,182

664,236-6,945Current liabilities

179,858

192,141

12,283

Short-term loans +27,281, Advances received -14,823

Long-term liabilities

321,459

281,581-39,878

Long-term loans -25,623, Bonds -10,251

501,318

473,722-27,595

Total assets

Total liabilities
Net assets

169,864

190,513

20,649Total liabilities and net
assets671,182

664,236-6,945321,044

311,010-10,034

7.70

6.68

-1.02

7.08

6.11

-0.97

Interest-bearing debt at endof fiscal period
Interest-bearing debt/
EBITDA multiple (Times)
Net interest-bearing debt/
EBITDA multiple (Times)

Retained earnings +12,824,
Valuation difference on available-for-sale securities +4,220,
Revaluation difference of land +3,487* Equity capital ratio 28.3% (+3.4pt)

Bonds -10,331, Long-term accounts payable -1,360,
Loans payable +1,658* Interest-bearing debt: Loans payable + bonds + accounts payable for Japan Railway Construction, Transport and Technology Agency (JRTT)

3

Consolidated Statements of Cash Flows(Millions of yen)

FY2014
Results

FY2015Results

ChangeMain factors of changes

Operating cash flows

29,573

21,459-8,113

Income before income taxes +3,874,
Increase in inventories -13,599,
Increase in accrued consumption taxes +5,529

Investing cash flows-15,132-4,473

10,658Proceeds from sales of fixed assets +9,054,
Purchase of fixed assets +6,513,
Proceeds from sales of investment securities -2,500

Financing cash flows-11,412-16,275-4,863

Proceeds from issuance of bonds -9,934,
Increase in loans payable +3,602

3,028

710

-2,318

Increase in cash and cash equivalentsfrom merger with non-consolidated
subsidiary

-

10

10

Cash and cash equivalents at end of
fiscal period

25,831

26,552

720

Net increase (decrease) in cash
and cash equivalents

4Segment Information(Millions of yen)

FY2014 Results

FY2015 Results

October 2014
Estimate

Change (%)

ChangeOperating revenue

289,203294,906

5,702

2.0%

286,400

Transportation

89,661

90,341679

0.8%

88,700Real estate

88,17989,454

1,275

1.4%

82,700Retail

95,427

96,661

1,233

1.3%

97,100

Leisure and service

27,42329,761

2,337

8.5%

28,700

Others

1,637

3,249

1,612

98.5%

3,300

Elimination-13,125-14,562-1,436--14,100

Operating income

25,08529,437

4,352

17.4%

24,300Transportation

6,928

8,086

1,158

16.7%

6,300

Real estate

14,571

14,752180

1.2%

12,600Retail

2,445

3,188

742

30.4%

3,000

Leisure and service

1,153

3,299

2,146

186.1%

2,400

Others

-0

-31

-31

-

0

Elimination

-13

142

156

-

0

5

Segment Information (Breakdown)[Consolidated subsidiaries] 41 companies (Keihan Electric Railway covers both the transportation business and the real estate business)[Equity method affiliates] 2 companies
Transportation

Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd., and 13 other companies

Real estate

Keihan Electric Railway Co., Ltd., Keihan Dentetsu Real Estate Co., Ltd., Keihan Asset Management Co., Ltd, and 6 othercompanies

RetailKeihan Department Stores Co., Ltd., Keihan The Store Co., Ltd., Keihan Ryutsu Systems Co., Ltd., and 2 other companies

Leisure andservice

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

OthersKeihan Card Co., Ltd., Biomarket Co., Ltd.

<Operating revenue by segment><Operating income by segment>

Others¥3.2 billion (1.1%)

Others¥-0 billion (-0.1%)

Leisure and service¥29.7 billion (9.6%)

Transportation¥90.3 billion (29.2%)

Leisure and service¥3.2 billion (11.3%)
Retail¥3.1 billion(10.9%)

Retail¥96.6 billion (31.2%)

Real estate¥89.4 billion (28.9%)

Real estate¥14.7 billion(50.3%)

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

6

Transportation¥8 billion (27.6%)

Results of Transportation(Millions of yen)

FY2014
Results

FY2015Results

ChangeChange (%)

October 2014
Estimate

Main factors of changes

Operatingrevenue

89,661

90,341679

0.8%

RailwayBus
Elimination

74,708 (+2,426)
26,753(+426)-11,121 (-2,173)

Operatingincome

6,928

8,086

1,158

16.7%

RailwayBus

Depreciation

10,445

10,468

23

0.2%

–

Capitalexpenditures

10,59011,601

1,011

9.5%

–

7,363
635

88,700(+957)(+176)

6,300<< Operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)
FY2014
Results

FY2015Results

Passenger transportation revenue(Millions of yen)

ChangeChange(%)

FY2014
Results

FY2015Results

Change(%)

ChangeNon-commuter
passes144,758

144,509

-249

-0.2

33,56533,59328

0.1

Commuterpasses136,060

136,279

218

0.2

15,85915,831-27-0.2

280,819

280,788-30-0.0

49,42449,425

1

0.0

Total

7

Results of Real Estate(Millions of yen)

FY2014
Results

FY2015Results

ChangeChange (%)

October 2014
Estimate

Main factors of changes

1.4%

Real estate
Construction
Elimination

73,413 (+3,704)
19,635 (-3,423)-3,594(+994)

82,700180

1.2%Real estate
Construction

14,376376

12,600

4,242

429

11.3%

2,351

-14,932-86.4%

Operatingrevenue

88,17989,454

1,275

Operatingincome14,571

14,752

Depreciation

3,812

Capitalexpenditures

17,284(+406)(-311)–
2014/03: Second-stage construction of
KUZUHA MALL, etc.

<<Results by business>>–(Millions of yen)
Operating revenue
FY2014
Results

FY2015Results

Operating income

ChangeChange(%)

FY2014
Results

FY2015Results

ChangeChange(%)

Real estate sales

51,33353,840

2,506

4.9%

6,549

5,558

-991

-15.1%

Real estate leasing service

16,12916,926

797

4.9%

7,303

8,643

1,339

18.3%

Other businesses

2,245

2,646

400

17.8%

116

174

58

50.0%

Total

69,70873,413

3,704

5.3%

13,96914,376406

2.9%<<Main condominium buildings for sale>>

Name
Shinagawa Tower Residence
The Kyoto Residence Shijo-Kawaramachi
Fine Flats Nara The Residence
Aito
The Sanctus Tower
Fine Quarter City

Sales amount (Millions of yen)
6,945
5,526
4,665
3,744
3,517
3,324

8

Number of units sold
105
105
119
196
868
115

Location
Minato-ku, Tokyo
Shimogyo-ku, Kyoto-shi
Nara-shi, Nara
Fushimi-ku, Kyoto-shi
Nishi-ku, Osaka-shi
Kita-ku, Osaka-shi

Results of Retail(Millions of yen)

FY2014
Results

Operatingrevenue

FY2015Results

95,427

Change96,661

Change (%)

1,233

1.3%

October 2014
Estimate

Main factors of changes
Department store
52,584 (-2,782)
Store
27,115 (+1,150)
Shopping mall management 13,852 (+2,959)
Restaurant
6,004 (-315)
Department store
508
Store
1,078
Shopping mall management 1,533
Restaurant
50

(-42)
(+221)(+592)(-28)

97,100Operatingincome

2,445

3,188

742

30.4%

Depreciation

1,273

1,326

52

4.1%

–

Capitalexpenditures

1,891

669

-1,222-64.6%–

3,000<< Major New Stores>>Name
UNIQLO, Kansai Airport Departure Area StoreSWEETS BOX, Beans Musashi Urawa Store
Juicer Bar, Mito excel Minami Store
Juicer Bar, Tobu Kita-senju StoreUNIQLO, ekimo Umeda StoreUNIQLO, Kansai Airport StoreKUZUHA MALL (renewal open)
FREST petit, Kuzuha Store
An3, KUZUHA MALL Store
Plug-in Drug, Kuzuha StoreSWEETS BOX, Keihan Kuzuha Store

Opening date
March 27, 2015

Location
Sennan-gun, Osaka
December 11, 2014 Minami-ku, Saitama-shi
November 14, 2014 Mito-shi, Ibaraki
July 29, 2014
Adachi-ku, Tokyo
April 4, 2014
Kita-ku, Osaka-shi
April 1, 2014
Izumisano-shi, Osaka
March 12, 2014 Hirakata-shi, Osaka
March 12, 2014 Hirakata-shi, Osaka
March 12, 2014 Hirakata-shi, Osaka
March 12, 2014 Hirakata-shi, Osaka
March 12, 2014 Hirakata-shi, Osaka<< Sales of Department Store >>(Millions of yen)<< Main Stores Closed>>
Name
Juicer Bar, Minami-Urawa Store
Juicer Bar, Mei-eki Taiko Street North Store
Juicer Bar, Tokyu Minami-Machida Store
Juicer Bar, Keisei-Tsudanuma Store
An3, Gotenyama Store

Closing date
January 31, 2015
March 24, 2015
October 19, 2014
September 23, 2014
August 26, 2014

Location
Minami-ku, Saitama-shi
Nakamura-ku, Nagoya-shi

Machida-shi, Tokyo
Narashino-shi, Chiba
Hirakata-shi, Osaka

9

Store

Sales
amountChangeMoriguchiStore

22,692-1,908

Kuzuha Store

10,350-18

KyobashiStore
Hirakata Store
Suminodo
Store
Miscellaneous
revenue
Total

7,090

-259

6,726

-346

5,148

-224

576

-23

52,584-2,782<< Sales of Store >>(Millions of yen)SalesamountChangeStore

11,764470

Convenience
store
Kiosk
Stationbusiness
Miscellaneous
revenue
Total

5,450

-122

519

-143

7,874

682

1,506

263

27,115

1,150

Division

Results of Leisure and Service(Millions of yen)

FY2014
Results

Operatingrevenue
OperatingincomeFY2015Results

ChangeChange (%)

Main factors of changes

October 2014
Estimate

27,42329,761

2,337

8.5%

Hotel
Leisure25,821 (+2,762)
4,136 (-392)

28,700

1,153

3,299

2,146

186.1%

Hotel
Leisure3,415 (+2,123)
99
(+17)

2,400

Depreciation

1,070

1,042

-27

-2.6%

–

Capitalexpenditures

1,622

1,223

-399

-24.6%–<< Hotel occupancy rates >>KyobashiTemmabashi
Kyoto
Hotel
Universal City
KeihanUniversal Tower
Asakusa
SapporoBiwako Hotel
Kyoto Tower Hotel
Kyoto
Kyoto Dai-ni Tower Hotel
Tower
Kyoto Tower Hotel Annex
Kyoto Century Hotel
Total

FY2014 Results

FY2015 Results

89.7%
93.8%
98.3%
83.4%
90.0%
96.3%
96.8%
82.8%
85.5%
89.4%
94.8%
90.5%
–

96.6%
95.2%
95.4%
92.1%
92.3%
96.4%
97.0%
86.0%
94.4%
95.6%
98.2%
93.1%
–

Change6.9 pt1.4 pt-2.9 pt
8.7 pt2.3 pt0.1 pt0.2 pt3.2 pt8.9 pt6.2 pt3.4 pt2.6 pt–10

Number of
rooms
214
317
286
330
641
178
200
171
162
303
122
222
3,146

Non-consolidated Statements of Income(Millions of yen)

FY2014
Results

FY2015Results

ChangeChange(%)

Operating revenue

85,996

86,342346

0.4%

Railway

52,721

52,675-45-0.1%

Subsidiary business

33,27533,666391

1.2%

Real estate sales

16,272

15,260-1,011-6.2%

Real estate leasing
service

14,76615,806

1,040

7.0%

Leisure

2,236

2,599

363

16.2%

Operating income

15,00016,512

1,511

10.1%

Railway

6,525

7,301

776

11.9%

Subsidiary business

8,475

9,210

735

8.7%

Real estate sales

2,236

1,268

-968

-43.3%

Real estate leasing
service

6,465

7,999

1,533

23.7%

Leisure

-227

-57

170

－

Ordinary income

12,83815,211

2,372

18.5%

Net income

9,082

9,250

168

11

1.9%

Main factors of changes

Number of passengers -0.0%,
Passenger transportation revenue +0.0%

Number of visitors to Hirakata Park +14.9%

Non-operating income +521 (Dividends income +400)
Non-operating expenses -338 (Interest expenses -300)
Extraordinary income +18,338 (Contribution for construction+18,259)
Extraordinary losses +19,881 (Reduction entry of land
contribution for construction +17,682,
Loss on sale of fixed assets +1,606)

FY2016 Forecasts

Forecast of Consolidated Business Results(Millions of yen)

FY2015Results

FY 2016
Forecast

ChangeOperating revenue

294,906

287,000-7,906-2.7%

Transportation -441, Real estate -10,254,
Retail +838, Leisure and service -2,161,
Others +4,250

Operating income

29,43722,000-7,437-25.3%

Transportation -1,386, Real estate -4,052,
Retail -688, Leisure and service -1,499,
Others +331

Ordinary income

27,435

18,600-8,835-32.2%

Non-operating income -1,009
Non-operating expenses +388

Profit attributable to owners of
the parent

17,864

14,800-3,064-17.2%

Extraordinary income -15,961
Extraordinary losses -19,694

Capital expenditure

15,87848,20032,321of capital expenditure>
203.6% <Breakdown
Transportation
13,400 (+1,798)

Depreciation

17,107

17,600492

2.9%

EBITDA

46,54539,600-6,945-14.9%

Interest-bearing debt

311,010334,000

22,989

7.4%

Interest-bearing debt/
EBITDA multiple (Times)

6.68

8.43

1.75

–

Net interest-bearing debt/
EBITDA multiple (Times)

6.11

7.99

1.88

–

13

Change (%)

Main factors of changes

Real estate
RetailLeisure and service
Corporate, etc.

9,400 (+7,048)
2,600 (+1,930)
5,400 (+4,176)
17,400 (+17,367)≪Main capital expenditure for FY2015≫(Transportation) Investment on our railway(Real estate) Investment on our real estate

9,424
9,237

Forecast of Consolidated Business Results≪By Segment≫≫(Millions of yen)

FY2015Results

FY 2016
Forecast

Operating revenue

294,906

287,000-7,906-2.7%

Transportation

90,34189,900

-441

-0.5%

Railway +347, Elimination -819

Real estate

89,454

79,200-10,254-11.5%

Real estate sales -9,611, Real estate leasing service -1,181

Retail

96,66197,500838

0.9%Store +813, Shopping mall management +208

Leisure and service

29,761

27,600-2,161-7.3%

Hotel -2,237

Others

3,249

7,500

4,250

130.8%

Elimination-14,562-14,700-137–

Operating income

29,43722,000-7,437-25.3%

Transportation

8,086

6,700

-1,386-17.1%

Railway -986, Bus -298

Real estate

14,752

10,700-4,052-27.5%

Real estate sale -2,472, Real estate leasing service -1,567

Retail

3,188

2,500

-688

-21.6%

Department store -454, Shopping mall management -142,
Store -85

Leisure and service

3,299

1,800

-1,499-45.4%

Hotel -1,470

Others

-31

300

331

–

Elimination

142

0

-142

–

Change14

Change (%)

Main factors of changes

Forecast of Non-Consolidated Business Results(Millions of yen)

FY2015Results

Operating revenue

FY 2016
Forecast

ChangeChange (%)

Main factors of changes

86,34284,500-1,842-2.1%

Railway operation

52,67552,830154

0.3%

Subsidiary business

33,666

31,670-1,996-5.9%

16,512

14,000-2,512-15.2%

Railway operation

7,301

6,390

-911

-12.5%

Subsidiary business

9,210

7,610

-1,600-17.4%

Ordinary income

15,211

12,600-2,611-17.2%

Non-operating income +77
Non-operating expenses +176

Net income

9,250

9,100

-150

-1.6%

Extraordinary income -18,162
Extraordinary losses -19,273

Operating income

Number of passengers +0.1%
Passenger transportation revenue +0.0%<< Forecast of operating results for transportation (Keihan Electric Railway) >>Number of passengers (Thousands of people)
FY2015Results

FY 2016
Forecast

ChangePassenger transportation revenue (Millions of yen)

Change(%)

FY2015Results

FY 2016
Forecast

ChangeChange(%)

Non-commuter passes

144,509

144,877

367

0.3

33,59333,65763

0.2

Commuter passes

136,279

136,083

-196

-0.1

15,831

15,772-59-0.4

280,788

280,960

171

0.1

49,42549,429

3

0.0

Total

15

ＴＯＰＩＣＳ

Keihan Group’s Medium-term Management Plan
“Bravely Pursuing Creation”(FY 2016 - FY 2018)

Summary of Keihan Group’s
Medium-term Management Plan (FY2013 – FY2015)◇ Operating results versus targets (quantitative targets)(Billions of yen)
FY 2013 Results

Compared tomedium-term
management plan

FY2014 Results

Compared tomedium-term
management plan

FY 2015 Results

Compared tomedium-term
management plan

Consolidated operating income

23.2

32.3%

25.0

37.1%

29.4

45.7%

Consolidated EBITDA

40.3

15.6%

41.6

17.4%

46.5

22.8%

Consolidated interest-bearing
debt/EBITDA multiple (Times)(Net interest-bearing debt / EBITDA
multiple [Times])

8.1
(7.6)

-1.7 P
(-)

7.7
(7.1)

-2.3 P
(-)

6.7
(6.1)

-2.3 P(-)

Consolidated net income

11.0

49.7%

14.4

94.9%

17.8

107.7%

Consolidated ROE(Net income to shareholders’ equity)

7.4%

2.3 P

8.9%

4.0 P

10.1%

4.5 P

Consolidated ROA(Operating income to total assets)

3.6%

0.8 P

3.8%

1.0 P

4.4%

1.3 P

We have achieved the targets in our medium-term management plan due to measures to reinforce operating structure,
as well as to a considerable increase in our income from real estate sales and hotel operation.

17

1. Basic Policy
While further strengthening the foundation of “safety and peace of mind,” which we have beendeveloping and protecting for the past century since our foundation, we will return to our foundation
philosophy amidst the severe business factors of today, such as the decreasing population, and aim toenhance the quality of our businesses in a prompt response to social changes, thereby taking the firstnew step toward realizing further evolution from what has been achieved in the past.

Basic Policy

Keihan Group’s Determination to Take on
Challenges at the “Second Foundation Stage”- Bravely Pursuing Creation-18

2. Main Strategies(1)

Achieve new growth through the creation ofsightseeing opportunities• Kyoto, which attracts approximately 50 million sightseers annually, lies along a railway line of the KeihanGroup. As a local company, we will aim to focus on the creation of sightseeing contents to draw many more
people to Kyoto and encourage them to revisit the area, thereby promoting the growth of areas along therailway line.
• The percentage of visitors to Osaka and Kyoto is especially high among foreign travelers to Japan (inboundtravelers), whose numbers are growing rapidly today. Since these areas are our main operation areas, wewill aim to provide a wider variety of services targeting inbound travelers, and provide even more
comfortable and attractive sightseeing experiences, thereby ensuring that we will benefit from the growth of
the inbound market especially in Osaka, Kyoto and their surrounding areas.
• Of particular note is Kyoto, which contains our important strategic bases: the area in front of Kyoto Station(our global base), Shijo-Kawaramachi (the main downtown), and Sanjo (the gateway to Higashiyama). We
will aim to reinforce the transport connection between Kyoto Station and the Keihan Railway lines, thereby
increasing accessibility from Kyoto Station to the Keihan Railway lines.

Priority project in the medium-term management plan
Promote the development of the area in front of
Kyoto Station as the global base for tourism• For tourists visiting Kyoto from across Japan and the rest of the world, the Keihan Group will aim to realize
the beginning of comfortable and attractive sightseeing in the area in front of Kyoto Station, the main
gateway to Kyoto.

19

2. Main Strategies
Project to open a new hotel in the area in front of Kyoto Station• We will aim to open the Keihan Group’s flagship hotel, fitting for the global market, by promoting the integrated
redevelopment of Kyoto Century Hotel and Kyoto Dai-ni Tower Hotel.
• We will implement renewal for Hotel Keihan Kyoto, Kyoto Tower, and Kyoto Tower Integrated redevelopment ofHotel Annex, thereby enhancing the earning power of the area in front of Kyoto
Kyoto Century Hotel andStation.

Kyoto Dai-ni Tower Hotel

To Sanjo/Gion-Shijo

Kyoto Tower Hotel Annex
Shichijo

Kizuya-bashi Street

Karasuma Street

Kyoto Tower

Shichijo Street

Kyoto Dai-ni Tower Hotel

Shiokoji Street

Renovated room of Kyoto Century Hotel(conceptual image)

Kyoto Century Hotel
Kyoto

Shinmachi Street

Hachijo Street

Hotel Keihan Kyoto

Kamo River

Tofukuji

20<Schedule>■ June to September, 2015
Kyoto Century HotelFirst phase: Room renovation
construction■ January 2016
Closure of Kyoto Dai-ni Tower Hotel■ January to March 2016
Kyoto Century Hotel
Second phase: Room renovation
construction■ Spring of 2018
Grand opening2. Main Strategies
Development of Kyoto Tower as a global base for tourism• Positioning Kyoto Tower (a wholly-owned subsidiary of the Keihan Group), a landmark of Kyoto, as a sightseeing base in
Kyoto for inbound travelers, we will set up the Kansai Tourist Information Center, Kyoto, in cooperation with JTB WesternJapan Corp., and gradually replace the merchandise available at the facility.
• With consideration given to the renewal of the entire facility in the future, we will aim to further enhance the brand value of
Kyoto Tower.
Kansai Tourist Information Center Kyoto
Opening: June 1，2015
Location: 3rd floor of Kyoto Tower
Ensuring closer cooperation with the information
centers operated by JTB Western Japan Corp. at
Kansai International Airport and Shinsaibashi of
Osaka, the newly established information center
will aim to provide services with high utility
value for foreign travelers visiting Kyoto, and tohandle a much larger volume of inbound-tourismrelated demand.

Kyoto, attracting more than
50 million sightseers
annually

Arashiyama/
Kinkakuji Temple
Daikakuji Temple

Sakamoto
Yase-Hieizan-guchi

Mt. Hiei

Rakuhoku/Mt. Hiei

Kinkakuji Temple

Lake Biwa

Randen (Keifuku
Electric Railroad)

Demachiyanagi

Lake Biwa
Tokyo
Kyoto

Randen Saga

Jingu-Marutamachi

Arashiyama

Sanjo
Yasaka Shrine
Gion-Shijo

Kansai International Airport

Kiyomizu-Gojo

Kyoto Tower
Kyoto

21

Keihan-Yamashina

Shichijo
TofukujiKeihanMain
Line

To Osaka

Higashiyama/
Kiyomizu/Gion

Uji/Fushimi

Hama-Otsu

Keishin Line

2. Main Strategies
Creation of sightseeing opportunities along the Flow of Water, andconnection with the global base• Originating from Mt. Hiei, the Flow of Water pours into the “Mother” Lake Biwa and runs through Kyoto and Uji, before arriving in Osaka, the City ofWater. By establishing a sightseeing route along this flow and creating sightseeing opportunities, we will aim to create a flow of people.
• We will play an active role in creating sightseeing opportunities by utilizing the setting of the Lake Biwa Canal (e.g., reviving boat transportation),
responding to the progress of an integrated-resort project in the Osaka Bay area, and promoting sightseeing in the Osaka Castle area.
• To create sightseeing opportunities, the Keihan Group will establish the “Flow of Water” Study Group, in cooperation with Prof. Motoo Kawabata ofKwansei Gakuin University and Associate Prof. Masahiro Kato of Ritsumeikan University, and promote research toward the discovery of new value ofthe Flow of Water.
• The starting point of the Kyoto Regular Tour Bus, which is operated by Keihan Bus Co., Ltd., is in front of Kyoto Station. By improving the quality ofthis bus service and implementing various other measures, we will aim to achieve smooth access from the global base to the Flow of Water and othersightseeing locations, thereby providing even more comfortable and attractive sightseeing opportunities.

Establish sightseeing routes covering Mt. Hiei and Lake Biwa

Lake Biwa
Eizan Cable /Eizan Ropeway

Sakamoto Cable

Shiga/Lake Biwa Route
Ogoto Onsen Port
Sakamoto

Kyoto/Yase Route

Eizan Electric
Railway

Mt. Hiei

Ishiyama-Sakamoto Line

HieizanSakamoto

Demachiyanagi
Sanjo-Keihan

Sanjo
Shichijo

Kyoto
StationTofukuji22

KeihanYamashina
Misasagi

Subway Tozai Line
Keihan MainLine

Create sightseeing opportunities through use of
the Flow of Water

Otsu
Port

Otsu Port – Ogoto Onsen Port
(Saturdays & Sundays)

KeishinLine
Hama-Otsu
Ishiyamadera

Konan Sea Route(Otsu Port – Otsu Port Cruising)2. Main Strategies(2)

Revitalize the areas along the Keihan Railway lines—efforts toredesign the areas along Keihan Railway lines• Since the development of the areas along the Keihan Railway lines progressed rapidly during the period of
rapid economic growth in Japan, it is now necessary to make renewals in those areas.
• For the Keihan Group, enhancing the value of the areas along our railway lines is an essential and inevitableassignment that we must work on in our second foundation stage. We will continue to make appropriate
investment from a medium-and long-term perspective, in order to establish a business foundation for the future.
• Our strategy to revitalize the areas along the Keihan Railway lines is more than simple renewal. Focusing on
enhancing the “value of living” in areas along our railway lines, mainly around stations, we will aim to promote
an integrated strategy combining both facilities and contents to redesign the areas along our railway lines.

Priority project in the medium-term management plan

Redevelop Hirakatashi Station and its surrounding areas• The areas around Hirakatashi Station, which were developed from the 1960s to the 1970s, now need to be
renewed.
• The number of passengers getting on and off at Hirakatashi Station is the third largest of all the stations
along the Keihan Line, next to Kyobashi Station and Yodoyabashi Station. We will renew Hirakatashi
Station as a station suitable for Hirakata, the core city representing the northern area of Osaka, and also
participate in an area redevelopment project to be launched in the future.

23

2. Main Strategies
Project to restore communities along the Keihan Railway lines• Under the strategy to revitalize areas along the Keihan Railway lines, we will aim to create communities that will attract many
more residents and visitors along the Keihan Railway lines, to activate the use of the Keihan Group’s railway and bus
transportation, which is one of our core businesses, and also to achieve the spiral growth of areas along our railway lines.
• Hirakata City is located almost in the middle of the Keihan Line, and is the core city representing the northern area of Osaka.
In this regard, the project to restore the city is influential over other areas along our railway lines.
• Accordingly, our plan is to first work on the restoration of Hirakatashi Station and its surrounding areas, and then gradually
expand such efforts to other areas along the railway lines.
■ Profile of Hirakata City
Population: 407,267(As of January 2015)
Number of daily passengers getting on
and off at Hirakatashi Station: 90,965(the third largest of all stations along the
Keihan Line)
Approx. 15 minutes to Kyobashi, Osaka
Approx. 27 minutes to Gion-Shijo, Kyoto
Healthy medical care city featuring an
excellent medical system
Home to many administrative
organizations covering the northern partof Osaka
Home to six universities

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

FY 2016
Renewal of Keihan Department Store,
Hirakata Store (Keihan Hirakata
Station Mall)

To Kyoto

Kyoto Prefecture
Arts & cultural baseKyoto City

Community interaction base

Shiga
Prefecture

Hirakatashi Station

Hirakata
City

Base in the extensive
area in front of thestationLife support base

Osaka
City

Legends
Maintenance ofa peripheral roadLine of a circular flow

Osaka
Prefecture

Nara Prefecture

Expansion of the squarein front of the station

Expansion of the squarein front of the station
Community interaction
spot* Viewing the entire city in a holistic manner, Hirakata City
established this vision in March 2013 to make the city even more
attractive and vigorous for all people connected to the city.

24

2. Main Strategies
Lifestyle mall along Keihan Railway lines• Under the strategy to revitalize the areas along the Keihan Railway lines, we will take advantage of opportunities to renew ourfacilities, and focus also on developing new contents, thereby expanding our businesses.
• Regarding the entire Keihan Railway lines as a single mall, we will aim to accumulate unique infrastructure functions andcontents mainly at each station. Ensuring the incorporation of stations as public spaces, we will endeavor to enhance thequality of the mall.
• This will enable customers living along our railway lines to use several Keihan areas. By providing high quality services forthem, we will enhance the “value of living” along the railway lines.
• Under the project to revitalize the areas along the Keihan Railway lines, we will endeavor to redesign the areas along therailway lines both in terms of facilities and contents.

Kyoto

Revitalize the areas along
the Keihan Railway lines
Enhance the “value of living”
along the railway lines

StationStationStationOsaka
Contents

Infrastructure functions

Accumulate infrastructure functions and contents25

2. Main Strategies(3)••

Create contents to enhance the “value of living”

The Keihan Group operates railway and other infrastructure businesses as our corebusinesses, with social mission of providing the value of “safety and peace of mind.”
Now that people’s lifestyles and values are changing, we will aim to form alliances actively
with companies from different industries that can share philosophies with us, in order tocreate new contents that will enhance the “value of living,” and generate synergy with ourcore businesses.

Priority project in the medium-term management plan

Create contents under the theme “BIO-Style”•“BIO-Style” is a lifestyle aimed at achieving a healthy, beautiful, and high-quality life andcontributing to a recycling-oriented society. We will aim to establish “BIO-Style” asKeihan’s new brand, in addition to “safety and peace of mind.”26

2. Main Strategies
Create contents to enhance business value•Today, when the focus of value needed by customers is shifting from items to experiences and significance,
we need to ensure that our businesses handle contents that can attract sympathy from customers.
•To create contents, we will form alliances actively even with companies outside our group from different
industries.

Establish “BIO-Style” as Keihan’s new brand, in addition to“safety and peace of mind”• In 2014, we welcomed Biomarket Co., Ltd., a company selling organic produce, as a new member of the
Keihan Group. With the spread of the health-and-environment-oriented lifestyle, we will ensure thecooperation between the new member and other members that operate a wide variety of businesses, in orderto develop a wide variety of “BIO-Style” contents. By so doing, we will establish “BIO-Style” as Keihan’s
new brand.

Disseminate “BIO-Style” from
Shijo-Kawaramachi, Kyoto• We will develop the “BIO-Style” contents at a complex facility to beconstructed in Shijo-Kawaramachi, the center of Kyoto, famous as the sitewhere the Kyoto Protocol was adopted. (The facility is to be opened in FY
2018.) We will disseminate “BIO-Style” throughout Japan, and ultimately to
the world.
BIO-Style Shijo-Kawaramachi,
Kyoto Project(conceptual image)27

2. Main Strategies“BIO-Style” Contents
Retail BusinessKeihan Department Store Co., Ltd. :Reinforce supply and sales of raw and processed organic JAS produce
Keihan The Store Co., Ltd. :Establish a section for organic produce at FREST Matsuiyamate Store
Keihan Ryutsu Systems Co., Ltd. : Set up Organic Marche at Keihan Mall

Leisure & Services Business
Kyoto Tower Hotel:
Use organic vegetables from Biomarket Co., Ltd. for some buffet dining
menu items at the restaurant Tower Terrace
Other Keihan Group Hotels:
Use organic produce for some menu items at restaurants of group hotels

Real Estate BusinessKeihan Electric Railway Co., Ltd. & Keihan Dentetsu Real Estate Co., Ltd.:
Consider the introduction of a delivery system for new condominium construction plans
Keihan Gardening Co., Ltd.: Promote joint planning and sales of organic roses and organic culture soil

We will continue to actively create new BIO-Style contents.

28

2. Main Strategies(4)

Establish a “steadfast group management” style

In our second foundation stage, we will work on the following challenges, and establish an appropriate
management style to realize our further growth.
• Reinforce competitiveness in our four core businesses of transportation, real estate, retail, and leisure &services• Expand the Keihan Group’s businesses by developing priority businesses across the country and implementing
other efforts• Create new businesses necessary for the next generation, by promoting alliances with companies from different
industries and utilizing M&A opportunities• Enhance the value of the areas along our railway lines, which serve as the base of the Keihan Group, from a
medium-and long-term perspective

Establish a steadfast group management style to sustain the “second foundation”

Transition to a holding company system• The Keihan Group will promote preparations for making a transition to a holding company system.
Schedule: Transition in April 201629

2. Main Strategies
Transition to a holding company system<Present situation><After the transition>
CustomerReal estatebusiness

Management control

Railwaybusiness

Management
strategy

Keihan Electric Railway Co., Ltd.
Transportation
subsidiary

Real estatesubsidiary

Retailsubsidiary

Leisure &services
subsidiary

Create “value ofliving” together
with customers

Realestatebusiness

Railwaybusiness

Holding company
sustaining groupmanagement

Leisure &services
subsidiary

Management
strategy

Schedule:
April 2016•

Businessstrategy

Retailsubsidiary

Cross-company
strategy

Real estatesubsidiary

Management control

Holding company
Transportation
subsidiaryGroup
CRE, etc.
Strategy
theme(Assetpossession)

Although railway and real estate businesses are currently directly operated by Keihan
Electric Railway Co., Ltd., we will launch preparation to ensure that each of them isoperated by a subsidiary.
30

2. Main Strategies■ Purposes of the transition to a holding company system
Strengthen the operating structure and change employees’ mindsets to promote theautonomy of each business, and establish a management style that will match therespective businesses, thereby aiming to reinforce competitiveness.
Ensure that the holding company demonstrates leadership, thereby aiming to implement
cross-sectional strategies for a wide variety of group businesses, to create new businessmodels including alliances with companies from different industries, and to make aneffective allocation of management resources to expand our priority businesses.
Ensure that the holding company makes strategic efforts to obtain, develop, maintainand sell properties (including securitization of assets) for a wide variety of businesses,
and also makes the most effective use of the group’s real estate (group CRE), thereby
revitalizing the areas along the Keihan Railway lines and expanding the areas of ourgroup businesses.

31

3. Strengthen the Management Foundation(1)

Continuous measures to revitalize railway transportation towardregaining the glory of railway transportation

By establishing a promising foundation, we will aim to put an end to the decline in our
proceeds from transporting passengers, and regain the glory of railway transportation.

■ Expand investment to provide safety and peace of mind, as well as high-quality
services to be realized through the pursuit of comfortableness and convenience.
■ Focus on cost control through effective operation and reasonable personnel
arrangement.
■ Achieve synergy between the strategies to create sightseeing opportunities, andrevitalize the areas along the Keihan Railway lines, thereby creating new
demand.
■ Strengthen the networks of our railways and secondary transportation means,such as buses, thereby enhancing the value of the railways as a mode oftransport.
32

3. Strengthen the Management Foundation(1)

Continuous measures to revitalize railway transportation towardregaining the glory of railway transportation

Implement measures for safety and peace of mind
◆ Promote the introduction of a new automatic train stop system (new ATS system)■ We will newly introduce a multiple information continuous control type ATS system for the Keihan Line, to realize even more
safe and stable transportation. We will aim to launch partial operation in FY 2016.

Achieve synergy with the strategy to create sightseeing opportunities, and reinforce ourtransportation network◆ Increase the frequency of the limousine bus service from and to
Sanjo-Keihan between Kyoto and Kansai International Airport■ We will increase the frequency of the Kansai International Airport limousine bus service from and to Sanjo-Keihan, and operate
one bus per hour as the standard timetable.
■ We will reinforce the connection between Kansai International Airport, a sky gateway of Japan, and Sanjo,
which is located close to the quintessential sightseeing areas of Kyoto, such as Gion and Higashiyama, andto the downtown in the center of Kyoto City, and which is also an important base along the Flow of Water sightseeing route.

Improve services for passengers◆ Make efforts to enhance customer satisfaction■ We will focus on CS enhancement through well-planned renewal of
station restrooms, the introduction of large-scale displays into all thestations, the introduction of beautiful designs to create comfortable
spaces at stations, the allocation of a number to each station withconsideration given to foreign visitors to Japan, the provision of
written information in four languages, and many other efforts.

33

Renovated Gionshijo station(conceptual image)3. Strengthen the Management Foundation(2)

Real estate business as the engine of the group’s growth

While continuing a sales business with the focus on short-term turnover, we will utilize knowhow accumulated through our leasing business and ensure that the real estate business
contributes to the main strategies and plays the role as the engine of the group’s growth both
inside and outside the areas along our railway lines.

Continue to sell condominiums, while creating new additional value in responseto changes in the market, and developing businesses utilizing existing assets inthe market, such as renovation and remodeling.
Promote the development of our strategic bases under the strategy to revitalize
the areas along the Keihan Railway lines.
Reinforce our real estate management function in order to make the mosteffective use of the group’s assets, and also aim to enter the REIT market.

34

3. Strengthen the Management Foundation(2)

Real estate business as the engine of the group’s growth

Continue sales business with the focus on short-term turnoverSell condominiums in the areas along our railway lines and major cities
across the country, while creating new additional value in response to
FINE CITY SAPPORO
changes in the market, and developing businesses utilizing existing
THE TOWER
assets in the market, such as renovation and remodeling
ODORI PARK(Conceptual image)

Make the most effective use of the group’s assets◆ Construct Keihan Yodo Logistics Yard
■ Construct an inland logistics facility in Yodo, Fushimi Ward, Kyoto City
Make effective use of the group’s land, and further develop growth fields
Spring of 2016: Commencement of service at the logistics facility(scheduled)

Looking toward the entry in the REIT market

Keihan Yodo Logistics Yard
(Conceptual image)

Expand the business in a cyclical manner (investment → retention → sales → re-investment), withconsideration given to development both inside and outside the areas along our railway lines, and expand fee
businesses, such as the asset and real estate management deriving from REIT.

35

3. Strengthen the Management Foundation(3)

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

While providing commercial contents under the strategies to revitalize the areas along the
Keihan Railway lines and to create sightseeing opportunities, we will enhance the value of“community” and “living,” especially in the areas along our railway lines. At the same time, wewill develop our commercial facility business outside the areas along our railway lines.

Develop and attract commercial contents under the strategy to revitalize areas
along the Keihan Railway lines.
Contribute to the sales expansion of organic produce under the strategy of BIOStyle.
Develop new business categories to further improve the quality of our in-station
shopping business.
Implement continuous renewal of the Mall series.
Ensure that tax exemption is available for inbound travelers from the perspectiveof sightseeing commerce.
Increase the number of retail property management contracts in cooperation with
the Keihan Group’s real estate division.
36

3. Strengthen the Management Foundation(3)

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

Develop new business categories to further improve the quality of
the in-station shopping business
Develop the in-station shopping business at Shin-Osaka Station
Keihan The Store Co., Ltd. has obtained a developer business contract for the in-station
shopping business at Shin-Osaka Station on the Midosuji Line of the Osaka Municipal
Transportation Bureau.

Attract many more UNIQLO stores
Strongly push forward the UNIQLO business at the tax-free area store in KansaiInternational Airport and other stores.

Set up new MUJI com stores

UNIQLO,
Kansai Airport Departure Area Store

Utilize the licensed store contract with Ryohin Keikaku Co., Ltd. and set up stores of MUJI com, a small-store brand, at in-station
shopping malls and other facilities as a direct management business of Keihan The Store Co., Ltd.

Implement continuous renewal of the Mall series
Renewal of Keihan Mall
End of March 2017: Large-scale renewal and expansion of the commercial zone

Increase the number of retail property management contracts
New property management contracts (obtained on April 16, 2015)
Blumer HAT Kobe Location: Chuo-ku, Kobe-shi No. of stores: 49 (as of the end of January 2015)
Resora Obu Shopping Terrace Location: Obu-shi, Aichi No. of stores: 43 (as of the end of January 2015)
No. of commercial facility property management contracts that we have as of May 2015: 20

37

3. Strengthen the Management Foundation(4)

Hotel and leisure businesses to create sightseeing opportunities

While promoting our hotel development and further enhancing the attraction of our sightseeing
routes in order to create sightseeing opportunities, we will raise the quality of our existing hotels
both in terms of facilities and contents, in order to establish a firm foundation toward
developing a multiple number of hotels not only inside but also outside the areas along ourrailway lines.

Hotel business—Promote the development of flagship hotels in line with thestrategy to create sightseeing opportunities, raise the quality of our existing hotels
both in terms of facilities and contents (such as know-how regarding thedevelopment of franchise operations), reestablish an even more efficientmanagement system, and aim to open more hotels in and after FY 2017 not only inOsaka but also in many other major cities across Japan, with due consideration
given to location and other conditions.
Leisure business—Enhance the attraction of our sightseeing routes and reinforce
their promotion in line with our strategy to create sightseeing opportunities.
38

3. Strengthen the Management Foundation(4)

Hotel and leisure businesses to create sightseeing opportunities

Raise the quality of our existing hotels in terms of both facilities
and contents◆ Renovation of Hotel Keihan Kyoto■ Implement a full renovation of the hotel as a flagship of our lifestyle hotels, and aim
to reinforce its earning power
Renovated room of◆ Renovation of Hotel Keihan Universal Tower

Hotel Keihan Kyoto(conceptual image)◆ Renovation of Hotel Keihan Tenmabashi◆ Renovation of the Atrium Lounge of Biwako Hotel■ Renewal to appeal to active customers (women in their 30s to 40s) as new targets◆ Renovation of Kyoto Tower Hotel Annex

Renovated Atrium
Lounge of Biwako Hotel(conceptual image)Open more hotels
Aim to open more hotels in and after FY 2018, not only in Osaka but also in many other major cities acrossJapan, with due consideration given to location and other conditions

39

4. Macroscopic Strategy Correlation Image
Redesign areas along the Keihan Railway lines.
Revitalize the areas along the Keihan
Railway lines.

Create sightseeing opportunities.
Create sightseeing contents mainly in Kyoto, ensure thatthe effects of such contents will spread to the Flow ofWater, and establish a global network.

Obtain new customers bycreating transportation
purposes.

Createcontents
that will
enhance the“value ofliving.”Revitalize communities centered on the stations along ourrailway lines.

Revitalize railway transportation.
Create new services using our stations.
Create transportation purposes other thancommuting and going to school.

Provide brand value.
Provide business models.

Increase the number ofresidents of and visitors to
the areas along ourrailway lines.

Provide return on investment.
Provide business know-how.

Strengthen our management foundation through the growth of our priority businesses.
(Including expansion to the outside of the areas along our railway lines)
Real estate business
Further utilize existing assets in the market.
Reinforce our real estate management function and enter
the REIT market.

Form strategic development alliances by sharing
property information and know-how.

Retail business

Hotel business

Actively expand station and commercial facility businesses.

Develop full-service type flagship hotels.
Develop a franchise of no-frills hotels.

Establish a steadfast group management style—the holding company.

40

Create a new
businessmodel andbusiness axis
for the next
generation.

5. Investment and Financial Strategies
Distribute a dividend of 6 yen a year on a stable basis.
Equity capital ratio: 25% or more
D/E ratio: less than 2.5 times
Allocate 70 billion yen for strategic investment for the coming three years (*).
* The fund for the strategic investment will be used for the main strategies, as well as forstrategic investment that will contribute to our business expansion and growth, M&A,
and other purposes (including our overseas strategies).

41

6. Quantitative Targets
Quantitative Targets(Reference)

FY 2018

Consolidated
operating income

22 billion yen
or moreConsolidated net
incomeConsolidated
EBITDA41 billion yen
or moreConsolidated ROE

8.5-times or
lessConsolidated ROA

Net consolidated interestbearing debt/EBITDA
multiple(Net income to shareholders’equity)(Operating income to total
assets)

FY 2018

12 billion yen
or more6% or more

3% or more

While considering investment and financial strategies, we will promote a strategy to revitalize theareas along the Keihan Railway lines from a medium-and long-term perspective. At the same time,
to expand our priority businesses, we will push forward strategic investment after rigorous selection
and careful consideration, thereby aiming to further increase profits.
42

7. Keihan Group’s Income and Expenditure Plan/
Management Indicators◆ Keihan Group (consolidated-base)(Billions of yen)

FY2015Results

FY2016
Forecast

FY2017Plan

FY2018Plan

Operating revenue

294.9

287.0

295.6

302.6

Operating income

29.4

22.0

21.5

22.1

Ordinary income

27.4

18.6

17.8

18.3

Net income

17.8

14.8

12.3

12.0

Net income per share (yen)

31.8

26.3

22.0

21.3

EBITDA

46.5

39.6

40.0

41.1

311.0

334.0

336.6

354.4

6.11

7.99

7.93

8.08

Equity capital ratio

28.3%

27.6%

28.0%

27.9%

Capital expenditures

15.8

48.2

39.6

45.1

Interest-bearing debt
at end of fiscal period
Net interest-bearing debt/EBITDA
multiple (Times)

43

7. Keihan Group’s Income and Expenditure Plan/
Segment Information
Keihan Group (consolidated-base, by segment)(Billions of yen)

Operating revenue
FY2015Results

FY2016
Forecast

Ordinary income

FY2017Plan

FY2018Plan

FY2015Results

FY2016
Forecast

FY2017Plan

FY2018Plan

Transportation

90.3

89.9

89.6

89.1

8.0

6.7

5.9

5.7

Real estate

89.4

79.2

81.7

86.2

14.7

10.7

9.8

10.7

RetailLeisure and service

96.6
29.7

97.5
27.6

103.4
27.0

105.4
28.0

3.1
3.2

2.5
1.8

2.7
2.5

3.1
2.0

Others

3.2

7.5

8.6

9.1

-0.0

0.3

0.6

0.6

-14.5

-14.7

-14.7

-15.2

0.1

0.0

0.0

0.0

294.9

287.0

295.6

302.6

29.4

22.0

21.5

22.1

Elimination
Total<Operating revenue by segment [FY 2018 Plan]>
Leisure andservice
8.8%<Operating income by segment [FY 2018 Plan]>

Others2.9%

Transportation
25.8%

Transportation
28.0%

Retail33.2%

Others2.7%

Leisure andservice
9.0%

Retail
14.0% Operating

Operatingrevenue¥302.6billionincome¥ 22.1billion

Real estate
27.1%

Real estate
48.4%* Percentages to the total revenue and income including intersegment transactions

44

8. Position of the Medium-term Management Plan
“Bravely Pursuing Creation”
The period for this medium-term management plan is positioned as the three years for us to prepare
for our future by implementing strategic investment based on our measures to create sightseeing
opportunities and revitalize areas along our railway lines, while featuring a mid- and long-term
perspective for future growth.
Realization of the
Keihan Group,
which continues tobe chosen for the
next 100 years

Medium-term
management plan
(FY 2013 – FY 2015)

Strengthen theManagement
Foundation

In and after FY 2019
Medium-termManagement Plan
“Bravely Pursuing Creation”(FY 2016 – FY 2018)

Realize growthThree years to prepare
for the future

To ensure that areas along the Keihan Railway Lines continue to be chosen, we will work on a wide variety ofmeasures from a mid- and long-term perspective. Based on the next medium-term management plan, we will aim toachieve a income level that will exceed our record high that we achieved in FY 2015.

45