FY2011
Financial Results Presentation

May 17, 2011
Keihan Electric Railway Co., Ltd.
(Tokyo Stock Exchange 1st/Osaka Securities 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 FY2011
Financial Results

Consolidated Statements of Income(Millions of yen)
2010/3

2011/3

ChangeMain factors of changes

2011/02
Estimate

Operating revenue

254,761259,5114,750(1.9%)

Transportation -1,938, Real estate +3,465, Retail +2,770,
Leisure and service +156, Others +90

254,000

Operating income

13,766

16,2692,503(18.2%)

Transportation -213, Real estate +1,362, Retail +546,
Leisure and service +728, Others +79

14,10011,8462,646(28.8%)

Non-operating income +156
(Dividends income +141, Miscellaneous income +16)
Non-operating expenses +13 (Interest expenses -145,
Miscellaneous expenses +167)

9,600

Extraordinary income +159
(Gain on sales of fixed assets +263, Subsidy +203）
Extraordinary loss +200
(Loss on revision of retirement benefit plan +1,074,
Impairment loss -550）

5,500

Ordinary income

9,200

Net income

4,498

6,478

1,980
(44.0%)

ROA

0.8%

1.1%

0.3pt

ROA: Net income to total assets

ROE

3.5%

4.9%

1.4pt

ROE: Net income to shareholders’ equity––

EBITDA

31,18633,985

2,798 (9.0%)

EBITDA: Operating income + depreciation–

Depreciation

17,42017,715295 (1.7%)

Capital expenditures

43,85329,781(14,072)(-32.1%)–
Transportation +988, Real estate -15,092, Retail +2,867,
Leisure and service -2,830–[Changes in scope of consolidation and application of the equity method (year-on-year)]
Consolidated subsidiaries:

Equity method affiliates:

36 companies (-5 companies)
New: 1 company - Biwako Food Service Co., Ltd. (Part of the business of Biwako Kisen Restaurant Co., Ltd. was transferred to the company. )Eliminated: 6 companies - Biwako Kisen Restaurant Co., Ltd. (The company was merged with Biwako Kisen Steamship Co., Ltd.)
Keihan Taxi Co., Ltd., Uji Keihan Taxi Co., Ltd., Tsuruga Keihan Taxi Co., Ltd., Kisen Taxi Co., Ltd.,
Osaka Keihan Taxi Co., Ltd. (Transfer of shares)
2 companies (No changes)2

Consolidated Balance Sheets(Millions of yen)

Current assets

2010/3

2011/3

Change131,166

132,791

Main factors of changes

1,625

Notes and accounts receivable +2,488, Land and buildings forsale +2,097, Cash and deposit -1,921
Property, plant and equipment +10,400 (newly-purchasedbuildings, etc.)
Intangible fixed assets -481,
Investments and other assets +5,054

458,463

473,437

14,973589,629606,229

16,599Current liabilities

166,510

176,890

10,380Current portion of bonds +9,696,
Income taxes payable +2,434, Short-term loans -7,988

Long-term liabilities

290,066

292,985

2,919

Provision for retirement benefits +998,
Long-term accounts payable -2,046

456,577

469,876

13,299Fixed assets

Total assets

Total liabilities
Net assets

133,052

136,352

3,300

Liabilities and net assets

589,629606,229

16,599Interest-bearing debt at end of
fiscal period

310,289

310,269

(20)

9.9

9.1

(0.8)

Interest-bearing debt/
EBITDA multiple (Times)

Retained earnings +3,559,
Valuation difference on available-for-sale securities -514
*Equity capital ratio 22.1%（-0.1pt）

Loans payable -9,629, Long-term accounts payable -2,510,
Bonds +10,119, Short-term bonds +2,000*Interest-bearing debt: Loans + bonds + accounts payable for Japan Railway Construction, Transport and Technology Agency (JRTT)

3

Consolidated Statements of Cash Flows(Millions of yen)

2010/3Operating cash flows

Investing cash flows

Financing cash flows

Change2011/3

20,525(34,660)

27,558(26,044)

Main factors of changes

7,032

8,616

14,113(3,776)(17,889)

Net increase (decrease) in cash
and cash equivalents(22)(2,262)(2,240)

Increase in cash and cash
equivalents resulting frommerger with non-consolidated
subsidiaries

−

12

12

28,996

26,746(2,249)Cash and cash equivalents
at end of interim period

4

Income before income taxes +2,605
Changes in inventories +1,878
Changes in provision for retirement benefits+1,408
Purchase of fixed assets +14,067
Proceeds from contribution for construction -4,098

Proceeds from long-term loans -12,001
Changes in short-term loans -7,735
Repayment of long-term loans -5,254
Changes in short-term bonds +6,000

Segment Information(Millions of yen)

2010/3

Change2011/3

Change (%)

2011/2Estimate

Operating revenue

254,761259,511

4,750

1.9

254,000

Transportation

96,543

94,605(1,938)(2.0)

93,800Real estate

53,33556,801

3,465

6.5

54,200Retail93,29096,0602,770

3.0

94,700

Leisure and service

22,48522,641156

0.7

22,600

Others

1,249

1,339

90

7.2

1,200

Elimination(12,143)(11,937)205−(12,500)

Operating income

13,766

16,269

2,503

18.2

14,100Transportation

5,980

5,766

(213)

(3.6)

4,900

Real estate

7,458

8,820

1,362

18.3

7,800

Retail

1,057

1,604

546

51.7

1,300

Leisure and service

(359)

368

728

−

400

Others

(359)

(279)

79

−

(400)

Elimination

(11)

(11)

(0)

−

100

* Since new accounting standards for disclosing segment information is applied from FY2011, the results for FY2010 have been revised according to the new
segment classification.

5

Results of Transportation(Millions of yen)

2010/3Operating revenue

96,543

Change2011/3

94,605

Change (%)(1,938)

2011/2Estimate

Remarks(2.0)

Railway operation
Bus
Taxi

79,950 （-356）
24,371 (+156）
2,071（-2,172）

93,800Railway operation
Bus
Taxi

5,731
60
-64

（-81）
（-51）
（-45）

4,900

Operating income

5,980

5,766

(213)

(3.6)

Depreciation

11,836

11,84610

0.1−

Capital expenditures

12,742

13,730

988

7.8

−

・Sales of taxi business as of October 1, 2010
・Welfare for elderly and nursing care service (Railway operation): Increased revenue in nursing home by 300 million yen
Increased revenue in day-care service by 65 million yen
Name

Opening date

Location

Rose Life Takanohara

November 1, 2009

Kizugawa city, Kyoto

Moriguchi Day Service CenterMay 1, 2009

Moriguchi city, Osaka<< Operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)
2010/3

2011/3

Commuter passes

140,435

136,204(4,230)(3.0)

16,565

Non-commuter passes

143,316

144,395

1,078

0.8

283,751

280,599(3,151)

(1.1)

Total

ChangePassenger transportation revenue(Millions of yen)
Change (%)

6

2010/3

2011/3

ChangeChange (%)

16,015

(550)

(3.3)

33,93733,866

(70)

(0.2)

50,50349,881

(621)

(1.2)

Results of Real Estate(Millions of yen)

2010/3

2011/3

ChangeChange (%)

2011/2

Remarks

Estimate

Operating revenue

53,33556,801

3,465

6.5

Real estate
Construction

45,128（+2,966）
12,032 （+52）

54,200Operating income

7,458

8,820

1,362

18.3

Real estate
Construction

8,674（+1,429）
111 （-25）

7,800

Depreciation

3,519

3,798

279

7.9

Capital expenditures

26,401

11,309(15,092)(57.2)−
2011/3: Keihan Midosuji Building, etc.
2010/3: INTAGE Akihabara Building, etc.

−<<Results by business>>
Operating revenue
2011/3

2010/3

ChangeOperating income
Change (%)

2010/3

Change2011/3

Change (%)

Real estate sales

28,68531,487

2,801

9.8

667

1,617

949

142.2

Real estate leasing service

13,476

13,641

164

1.2

6,576

7,057

480

7.3

Total

42,16245,128

2,966

7.0

7,244

8,674

1,429

19.7

・ Valuation loss of land and buildings for sale: 962 million yen (-223 million yen ) (Recorded as cost of sales)<<Main condominium buildings for sale>>
Name

Sales
amountNumber ofunits sold<<New leasing properties>>
LocationName

The Kourien Tower

5,128

260

Neyagawa city, Osaka

REFFINEZ KONOIKE SHINDEN

3,411

139

Higashi-osaka city,
Osaka

Fine Residence Heiwadai

2,449

51

Nerima ward, Tokyo

Fine Flats Kyoto Saiin

2,080

72

Ukyo ward, Kyoto

The Lions Hirakata Gotenyama

1,042

342

Hirakata city, Osaka

7

Acquired date

Location

Keihan Midosuji Building

September 2010

Chuo ward, Osaka city

INTAGE Akihabara Building

September 2009

Chiyoda ward, Tokyo* Trust beneficiary rights of all properties were acquired.

Results of Retail(Millions of yen)

2010/3Operating revenue

93,2902011/3

Change96,060Change (%)

2,770

3.0

Department store
Store
Shopping mall management
Restaurant
Department store
Store
Shopping mall management
Restaurant

Operating income

1,057

1,604

546

51.7

Depreciation

1,158

1,182

23

2.1

853

3,721

2,867

335.8

Capital expenditures

2011/2Estimate

Remarks
51,957（+1,704）
29,274 （-371）
11,010 （+491）
6,808 (+1,179)
372
491
726
-6

94,700(+310)(+200)
(+95)
（-52)

1,300
−
−

2011/3: Keihan Department Suminodo Store, etc.

・ Shopping mall management: Hawks Town Mall (Fukuoka city, Fukuoka) Acceptance of property management
Attraction of FOREVER21 (Commercial Building in Shibuya ward, Tokyo / Previous HMV Shibuya)
・ Restaurant: An increasing factor generated by merger with non-consolidated subsidiaries: 1,206 million yen<< New Properties >>Name<< Sales of Department Store >>Opening date

Location

Keihan Department Suminodo Store

October 8, 2010

Daito city,Osaka

SWEETS BOX Tambabashi Store

September 24, 2010

Fushimi ward,
Kyoto city

April 21, 2010

Ukyo ward, Kyoto
city

Hakodateichiba AEON Mall Kyoto Hana
Store<< Sales of Store >>(Millions of yen)
Store

Sales
amountChangeMoriguchiStore

24,793(706)

Kuzuha Store

9,936

45

Kyobashi
Store

7,669

(152)

Hirakata Store

6,388

(52)

2,551

2,551

UNIQLO Nankai Namba Station Store

October 16, 2009

Chuo ward, Osakacity

SWEETS BOX Nankai Namba Station
Store

October 15, 2009

Chuo ward, Osaka
city

Suminodo
Store

UNIQLO Namba Walk Store

August 28, 2009

Chuo ward, Osakacity

Miscellaneous
revenue618

18

UNIQLO Keihan Hirakata Store

July 24, 2009

Hirakata city,
Osaka

Total

51,9571,704

8(Millions of yen)
DivisionSales
amountChangeStore

12,795(315)

Convenience
store

5,859

19

980

(89)

Station business

8,636

(18)

Miscellaneous
revenue

1,001

31

Total

29,274

(371)

Kiosk

* UNIQLO retail stores (Station Business)
1,882 (+177) (7 stores)

Results of Leisure and Service(Millions of yen)

2011/3Operating revenue

22,48522,641

156

0.7

Hotel
Leisure18,104 (+410)
4,742 (-453)

22,600Operating income

(359)

368

728

−

Hotel
Leisure220 (+697)
138 (+28)

400

905

886

(18)

(2.0)

3,862

1,031

(2,830)(73.3)

2011/3

ChangeDepreciation
Capital expenditures

ChangeChange (%)

2011/2Estimate

2010/3

Remarks−
2010/3: Hotel Keihan Asakusa, etc.

<< Hotel occupancy rates >>2010/3

Remarks

Kyobashi

84.6%

89.4%

4.8pt

Temmabashi

72.6%

75.2%

2.6pt

Kyoto

86.6%

91.5%

4.9pt

Universal City

66.6%

77.1%

10.5pt

Universal Tower

61.2%

69.8%

8.6pt

Asakusa

79.8%

85.7%

5.9pt

Opened on November 21, 2009

Sapporo

76.7%

79.5%

2.8pt

Opened on June 6, 2009

Biwako Hotel

71.6%

73.2%

1.6pt

Kyoto Tower

88.1%

87.9%

(0.2pt)Hotel
Keihan9−

Non-consolidated Statements of Income(Millions of yen)

2010/3

2011/3

ChangeChange(%)

73,40074,9361,536

2.1

Railway operation

53,90953,188

(720)

(1.3)

Subsidiary business

19,491

21,748

2,256

11.6

Real estate sales

4,111

5,627

1,516

36.9

Real estate leasing
service

13,133

13,641507

3.9

Leisure

2,246

2,479

233

10.4

11,922

12,537614

5.2

Railway operation

6,101

5,807

(294)

(4.8)

Subsidiary business

5,821

6,729

908

15.6

Real estate sales

(341)

(113)

228

−

Real estate leasing
service

6,526

7,057

530

8.1

Leisure

(363)

(213)

149

−

6,857

8,897

2,040

29.8

Operating revenue

Operating income

Ordinary income

Net income

5,176

4,107

(1,068)10(20.6)

Remarks

Number of passengers
Passenger transportation revenue

-1.1%
-1.2%

Number of visitors in Hirakata Park

+6.2%

Non-operating income +13
Non-operating expenses -1,412 (Interest expenses -136,
Provision for loss on guarantees -1,189)
Extraordinary income -1,070(Gain on extinguishment of tie-in shares -778)
Extraordinary loss +2,205（Loss on revision of retirement
benefit plan+1,074, Impairment loss+640, Loss on valuationof stocks of subsidiaries and affiliates+545)

Business Results Forecast of FY2012

Forecast of Consolidated Business Results (1)(Millions of yen)
FY2011 Results

FY2012
Forecast

ChangeChange(%)

Main factors of changes

Operating revenue

259,511

256,300(3,211)(1.2)

Transportation -4,505, Real estate +398, Retail +739
Leisure and service +558

Operating income

16,26915,000(1,269)(7.8)

Transportation -716, Real estate -770, Retail -304
Leisure and service +431

Ordinary income

11,8469,500(2,346)(19.8)

Non-operating income -711
Non-operating expenses +366

Net income

6,478

5,700

(778)

(12.0)

Extraordinary income -1,603
Extraordinary loss -2,838

Capital expenditures

29,78145,10015,31851.4 [Breakdown of capital expenditures]

Depreciation

17,715

18,400684

3.9

EBITDA33,98533,400

(585)

(1.7)

Interest-bearing debt

310,269

340,000

29,730

9.6

Interest-bearing debt /EBITDA multiple(Times)

9.1

10.2

1.1

−

12

13,200(-530)
Transportation
Real estate
28,800 (+17,490)
Retail2,000 (-1,721)
Leisure and service 600(-431)
Corporate, etc.
500(+511)<<Main capital expenditures for FY2012 >>(Transportation) Investment on our railway 8,354(Real estate) Investment on our real estate 28,654

Forecast of Consolidated Business Results (2)<< By segment >>(Millions of yen)
FY2011 Results

FY2012
Forecast

ChangeChange (%)

Main factors of changes

Operating revenue

259,511

256,300(3,211)(1.2)

Transportation

94,605

90,100(4,505)(4.8)

Real estate

56,801

57,200398

0.7Real estate sales -3,434
Real estate leasing service +1,028
Construction +3,417

Retail

96,06096,800739

0.8Department store +1,779, Store -898

Leisure and service

22,641

23,200558

2.5Hotel +663

Others

1,339

1,400

60

4.5

Elimination(11,937)(12,400)(462)−

Operating income

16,26915,000(1,269)(7.8)

Transportation

5,766

5,050

(716)

(12.4)

Railway operation -886, Taxi ＋64

Real estate

8,820

8,050

(770)

(8.7)

Real estate sales -543, Real estate leasing service -242,
Construction +46

Retail

1,604

1,300

(304)

(19.0)Store -155, Department store -142

368

800

431

116.8

Hotel +311

Others

(279)

(200)

79

−

Elimination

(11)

0

11

−

Leisure and service

13

Taxi -2,071, Railway operation -1,187

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

Change (%)

Main factors of changes

FY2011 Results

FY2012 Forecast

74,93677,0002,063

2.8

Railway operation

53,18852,320

(868)

(1.6)

Subsidiary business

21,74824,680

2,931

13.5

12,537

11,110(1,427)(11.4)

Railway operation

5,807

4,840

(967)

(16.7)

Subsidiary business

6,729

6,270

(459)

(6.8)

Ordinary income

8,897

7,060

(1,837)(20.6)

Non-operating income -15
Non-operating expenses 395

Net income

4,107

4,410

302

7.4

Extraordinary income -711
Extraordinary loss -3,324

Operating revenue

Operating income

ChangeNumber of passengers -1.7%
Passenger transportation revenue -1.4%<< Forecast of operating results for transportation (Keihan Electric Railway) >>Number of passengers (Thousands of people)

Passenger transportation revenue (Millions of yen)

FY2011Results

FY2012
Forecast

ChangeCommuter passes

136,204

131,431(4,773)(3.5)

16,015

15,505

(510)

(3.2)

Non-commuter
passes144,395

144,467

71

0.0

33,866

33,688

(178)

(0.5)

280,599

275,898(4,701)(1.7)

49,88149,193

(688)

(1.4)

Total

Change(%)

14

FY2011Results

FY2012
Forecast

ChangeChange(%)

TOPICSSUMMARY of ATTACK 2011
− For Further Growth −Summary of ATTACK 2011
◇ Outline of Keihan Group’s Mid-Term Management Plan “ATTACK 2011 (FY2010-2012)”
Basic Concept“Build up a Robust Management Base” capable of conquering the difficulties
and “Realize the Growth towards Our Vision” as early as possible.

Reinforcement of Business Base
(Defense)

Realization of Growth(Offense)

Review and restructure by distinction
and concentration of business andassetsStrengthen competitiveness and maximize
cash flow with autonomous management
in respective business groups
Prioritize the business of real estate,retail and hotel, and concentrate ourmanagement resources on themPursue the reorganization andintegration of the business for
management efficiency
Raise profitability and efficiency to
the fullest

Expand the area to be developed

16Summary of ATTACK 2011
◇ Results and forecast for the qualitative targets[External environment]
The consumption slowdown caused by economic stagnation ismore protracted than expected.
Especially in the retail and hotel businesses, price competition isintensifying, and business is remarkably affected by the outbreakof a new strain of influenza.
In the railway business, the number of commuter pass holders
decreased more than expected.

Reinforcement of
Business Base

Qualitative targets

Focus on the reinforcement of business basePartial review of the investment for growth centeringon the retail and hotel businesses is needed.
Development of our domain area, centering on
Kyoto and Nakanoshima, and new profit-making
businesses have not completed.

Items to be implemented- Distinction and concentration ofbusiness and assets

・Withdrawal from unprofitable businesses and stores(Sales of taxi business and Fukui Country International Co., Ltd. and Daisen Lake Hotel,
liquidation of Soil Engineering Co., Ltd., and closing of FREST Owada)- Reorganization and integration
for management efficiency

・Reorganization and integration of real estate leasing, restaurant, and Biwako Kisen
Steamship Group- Reinforcement of profitability- Promotion of efficiency measures

・Attraction of tourists by strengthening our cooperation with JTB・Railway: Promotion of the efficiency from mid- and long-term perspective
・Promotion of efficiency in each businesses

Realizationof Growth・Acquisition of real estate for leasing and expansion of condominium sales- Expansion of revenue base・Opening of Keihan Department Suminodo Store
・Opening of superior business hotels (Sapporo and Asakusa)- Promotion of the area strategy

・Launching KUZUHA MALL second-stage development plan
・Expansion business outside of our domain area especially in metropolitan areas (Real estateleasing and sales, property management of commercial facilities)

17

Summary of ATTACK 2011
◇ Results and forecast for the numeric targets(Billions of yen)
FY2010 Results

FY2011 Results

To ATTACKFY2012 Forecast

To ATTACK

Operating income

13.8

16.3

(0.1%)

15.0(27.6%)EBITDA

31.2

34.0(6.8%)

33.4(20.3%)

2.3%

2.7%

0.1P

−

−

4.5

6.5

13.9%

5.7

(28.8%)

3.5%

4.9%

0.6P

−

−

9.9

9.1

(0.2P)

10.2

1.7P

310.3

310.3

(8.1%)

340.0(4.9%)ROA(Operating income to total assets)

Net income
ROE(Net income to shareholders’equity）

Interest-bearing debt/
EBITDA multiple (Times)
Interest-bearing debt at
end of fiscal period
Investments (Three-year total)

118.7(12.4%)

Our efforts to build the business base is bearing fruit.
However, the numeric target for the final year is expected not to be attained mainly due to the
reduction of growth investment.
We will continue to make efforts to get as close as possible to the target.

◇ Basic Policy in FY2012
Continue to focus on reinforcing business base.
Invest for future growth with careful attention to the recovery of earning ability of existing businesses
and changes in financial structure.

18

Towards the Next Mid-Term Management Plan (FY2013 – 2015)◇ Business environment(Thousands of people）【Number of Keihan passengers】

350,000
300,000

The number of passengers tends to decrease
due to the aging society, falling birthrate,and economic stagnation.

250,000
200,000
150,000
100,000
50,000

20
12

20
11

20
10

20
09

20
08

20
07

20
06

20
05

20
04

20
03

20
02

20
01

20
00

As the aging of society with a falling birthrate in
Kansai area will continue, the working-aged,
employed, and school-aged population is expected todecrease substantially.
This, as a result, will cause the decrease in number ofpassengers, and the competition among the railways is
expected to intensify.

19
99

0

(FY)

【Estimated working-aged population in Kansai area 】(Thousands of people）

16,00014,00012,00028％減少
28% down
10,000In order to maintain the population of residents in ourdomain area, and workers and school-aged population
commuting from outside the area,
we should make every effort to maintain and improvethe value of the area.

8,000
6,000

Wakayama
Nara
Hyogo
Osaka
Kyoto
Shiga

4,000
2,000
0
2005

2015

2025

2035

Based on “Estimated prefectural future population in Japan” (Estimated in May 2007)
issued by the National Institute of Population and Social Security Research19

Towards the Next Mid-Term Management Plan (FY2013 – 2015)
ATTACK 2011

Three years after FY2013

Reinforcement ofbusiness baseDevelopment of our domain area topursue sustainable prosperity

Realization of growth

Expansion of business areas“Aggressive” attitude
should be put forward◇ Important theme for FY2013 and later○ Further promote the enrichment of○ Expand business areas for further

development of revenue baseour domain area

・Develop business outside our domain area bymaking the most of our know-how

・Improve the value of our domain area
・Deeply cultivate the area and create new profit-making pillars
・Attract tourists and improve the environment to receive them・Aggressive and vigorous business tie-ups

The details of the next Mid-Term Management Plan (Business portfolio, practical measures, numerictargets, etc.) are being formulated. We plan to announce them around the end of this fiscal year.

20

TOPICSFY2012 EFFORTS

Promotion of Area Strategy
Improvement of our domain area’s value◆ Launch the KUZUHA MALL second-stage development plan “Create a town that will continue
to be chosen.”
Based on the development concept “Towards Kuzuha we can be proud of,” we will further enrich thelifestyle proposal that is now supported, and integrate entertainment and household-related productstores that are currently missing, to make one of the largest shopping centers in Kansai area in termsof both scale and content.
⇒ Create a town that people want to live and feel happy to live
[Project Outline]
Location: Kuzuha-hanazonocho, Hirakata city, Osaka(Keihan Railway: Kuzuha Station)
Total floor space : approx. 200,000m2
Sales space: approx. 72,000m2
Parking space: approx. 3,000 lots
Opening: Autumn 2013 (Planned)↑[Reference: Outline of Areas to be developed & present KUZUHA MALL](Outline of present KUZUHA MALL)

to K
yoto
Kuzuha Station

Kuzuha Tower City
(488 units/Completed in 2003）

Areas to be
developed

Total fl. space

Main Building
88,000m2

Sales space

35,000 m2

10,000m2

Buildingscale

4 floors above ground

4 floors above ground& 1 floor underground

Business
category

To O
sak↓
a

OpeningFine City Kuzuha(211 units/Completed in 2007)

Parking space*The west building and the KIDS building will be demolished and reconstructed in the spring of 2012.

22(Parking: 4th fl. & roof)

West Building

KIDS Building

16,000m2

6,000m2
5,000m2

110,000m2

1-story building―

Specialty stores―

September 15, 2005

―

Total
50,000m2

Specialty stores
Keihan Dept. store
Specialty stores
GMS(Daiei/Izumiya)
April 14, 2005
Pre-open: April 8
2,000 lots―

Promotion of Area Strategy
Improvement of our domain area’s value◆ Nakanoshima Area
Nakanoshima Line users increased by promoting area development, and taking measures to raise awareness and create
demand for the area through special events.
We will continue to promote “Area activation” in both hardware and software aspects in cooperation with othercompanies and municipal governments, including that with the Asahi Broadcasting Corporation.
[Changes in transportation revenue for the Nakanoshima Line (Year-on-year change)]

West zone(around 2018)

Oebashi Station

Watanabebashi Station

Nakanoshima 4-chome
Planning zone

Nakanoshima
Festival tower(Autumn 2012)

Nakanoshima Station

Daibiru-Honkan building(Feb. 2013)

N4. TOWER

2010/3

2010/92011/3

Commuter passes+44.8%+10.9%+8.0%

Non-commuter passes(4.2%)

+2.0%

+4.2%

Total

+3.1%

+3.8%

+5.0%

* Opening of Nakanoshima Line: October 19, 2008

[Major event in FY2012]“Daihatsu Kooza”in Osaka
Schedule: August 4 –November 6(Total 132 shows)

Osaka Museum ofModern Art, etc.
(Planned)(Source of map: Nakanoshima Machi-mirai committee)◆ New entry into relocation/residential change support businessSupport for “Enriched life after retirement for senior citizens” and“Encouragement for families with small children to reside in our domain area ”
Promote our domain area as “worthy to be chosen” by maintaining andimproving area vitality

23

Costumes: Marie-Chantale Vaillancourt© 2010,2011 Fuji Television

Business Strategy (Railway operation)
We will continue to develop the business based on safety, improvement of service, and increase of
efficiency.
Safety Measures◆ Establish the overhead crossing near Yodo Station
Elevate the railway for Kyoto completed and use of the platform started (May 28)(Use of the platform for Osaka was started in September 2009.)
Improve safe operation by removing three railway crossings
Improve accessibility to the Kyoto Race Course on the dates of horse races
Maintain station square (To be completed in 2013)

Improvement of Profitability and Efficiency

Service Improvement◆ Mid- and long-term operational improvement
measures◆ Revision of the train schedule (May 28)
Make a train schedule commensurate with passengers’
load to improve availability and stimulate demand.
Reduce the number of vehicles and various expenses byrealizing efficient operation.

In anticipation of depopulation, review the personnel
arrangements and formulate operational improvement
measures from scratch, while prioritizing security.
Increase unmanned stations utilizing a remote station
monitoring system. Expand one-man train operation.

◆ IC card service with JR WEST
Start selling ICOCA and ICOCA commuter passes by the
Keihan railway (June 1), followed by the sales of ICOCA
commuter passes by JR WEST

◆ Demand-creating and revenue-increasing measures
Sell special event tickets with other companies

24Business Strategy (Real estate)
We will make further efforts to strengthen the stable revenue base of a growth business (realestate leasing) as well as the short-term turnover business.
Acquisition of new lease properties
Eishin Building (Chiyoda ward, Tokyo) (Acquired on April 28)
Invest aggressively in highly-evaluated properties after a thoroughexamination, and promote the expansion of the real estate leasing businessin terms of scale and area.

- Bijours Biwako, Keihan Hamaotsu
Senior citizen-oriented condominiums in resort area
: Hamaotsu, Otsu city, Shiga: 14-stories high / 130 units: Late in May, 2011 (Planned)- Grand First Senri Momoyamadai
Contribute to local revitalization by participating in therebuilding project
Location
Building scale
Move-in dates

Sanbancho, Chiyoda ward, Tokyo
Location（4 min. on foot from
Tokyo Metro “Hanzomon Station”)

Total floor space

7,751.26m2
Steel-reinforced concrete

Building structure

8 stories high and 2 floors below
ground, flat-roofed building

Completion January 1973

Promotion of condominium sales

Location
Building scale
Move-in dates[Property Outline]: Momoyamadai, Suita city, Osaka: 15-stories high with a basement,
798 units (of which, units for sale: 544)
: September 2011 (1st and 2nd buildings)
January 2012 (3rd to 7th buildings)
April 2012 (8th and 9th buildings) (Planned)25

Business Strategy (Real estate)
Effective use of our assets
Station-square commercial
area to be developed

Costco◆ Costco Kyoto Yawata Warehouse (tentative name)

Fine Garden Square

The membership warehouse business Costco is to be invited to the site forcommercial facility in the sixth block of Keihan East Rose Town Minoyama.
〔Property Outline〕
Location: Kinmeidai-kita, Yawata city, Kyoto
Site area: approx. 21,000㎡
Opening: Autumn 2011(planned)

Matsui-yamate
stationFREST
Matsui-yamate

We will promote sales of housing and securestable revenue by improving the area’s value.
◆ Kumiyama Shopping Town second-stage plan (Spring 2012)[Overall view of Keihan East Rose Town]

The land and buildings are leased to Aeon Retail Co., Ltd. to be operated as “Kumiyama Shopping Town.”
In the second-stage plan, the shopping area is to be expanded by about 1.5 times through effective utilization of the flat parking area.
〔Property Outline〕
Location: Minamiouchi, Mori, Kumiyamacho, Kuze, Kyoto[Present][After increasing the space (Planned)]
Shops
41,479m2

Total

Multistory parking lot
2

15,263m
56,742m2

Total

26

Shops

Multistory parking lot

60,140m2

24,096m2
84,236m2

Business Strategy (Retail)Improvement of profitability and efficiency of existing businesses
Expansion of the commercial property management business
Reinforcement of profitability of existing businesses◆ Renewal of sales space- KUZUHA MALL (April 28)
Replace and renew 1/3 of the tenants followed by the completion of limited-term lease
contracts.
Differentiate the mall from our competitors in anticipation of the second-stage
development plan.

- Keihan Department Moriguchi Store (Autumn 2011, planned)
Aim at a “daily department store” to cope with increasing floor space of metropolitan
department stores.
Renovate our flagship food floor to further strengthen the business. Promote self-service
shopping in the fresh food floor to improve shopping ease and efficiency.

◆ New Stores- SWEETS BOX, JR Osaka Station, LUCUA Store (May 4)
Two SWEET BOX stores and two UNIQLO stores (planned).
Open stores in the area along other railway lines to expand our market.

27

Business Strategy (Leisure and Service)
Reinforcement of attracting tourists / Construction of the business base of the hotel business
Reinforcement of tourism◆ Set up a special team for a comprehensive and agile management system
Focus on attracting tourists both from home (Kyushu) and abroad.
Place tourism as our new profit-making pillar. Plan and propose tour products andland arrangement service, and give support to Keihan Group to receive moretourists.

◆ Sell the business of Keihan Travel Service Co., Ltd. to reinforce
cooperation with JTB
Part of the business of Keihan Travel Service Co., Ltd. is to be sold to JTB Keihan TravelCo., Ltd. (a co-parent company of JTB Corp. and our company). (July 1)

Utilize tourist attractions of the Keihan Group and our domain area, such as
leisure facilities and hotels, and JTB’s product planning abilities, to attract tourists
to the Kansai area and promote business cooperation with JTB by offering
convenient facilities near railway stations.
*Keihan Travel Service Co., Ltd. is classified as transportation business in the consolidated segment.

[Hotel business results (consolidated)](Millions of yen)

20,000Operating revenue

531

19,000Operating income

18,76718,00017,575

17,693220

17,000Construction of the business base of the hotel business

16,000A certain result was achieved by reinforcement of sales and marketing,cost reduction, and measures for improving business efficiency.

14,00015,00018,104-99

13,00012,000-477
FY2009FY2010FY2011FY2012 (Forecast)Continue to improve room availability, ADR (Average Daily Rate), and customer satisfaction, and cope with short-term cost
reduction. Promote managerial reform, to strengthen competitiveness, including business structure organization and human resource
development from the mid- and long-term viewpoints.

28

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