First Half of FY2021(Ended September 30, 2020)

Financial Results Presentation
November 12, 2020
Keihan Holdings Co., Ltd.
(Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.co.jp/)

Table of Contents

 Overview of the First Half of FY2021 Financial Results… 2

 FY2021 Forecasts… 15

 Future Business Direction for the Keihan Group… 25◆Notes on forecasts◆
Descriptions of business forecasts and future prospects are based on current information and certain assumptions about factors that may affectfuture business.
Actual results may differ due to various factors that may arise in the future.

1

Overview of the First Half of FY2021

Financial Results2

Consolidated Statements of Income• Revenues declined significantly because of decreased inbound demand and voluntary restraints on outings in Japan due to the
COVID-19 pandemic. In the real estate business, condominium sales declined in reaction to strong sales in the same period of
the previous year. Income at each stage deteriorated substantially. These factors brought us to record-low results in the second
quarter of this fiscal year.
(millions of yen)

1H FY2021
Results

1H FY2020
Results

ChangeMain factors of changes-56,976(-34.5%)-27,823(－)*Impact of the COVID-19 pandemic:-44,500

Operating revenue

108,232

165,209

Operating income-5,854

21,969

1,735

1,091

643

1,856

1,625

231

-5,97521,435-27,411
(－)

2,524

2,455

69

Gain on sales of investment securities: +1,310
Compensation income: -1,093

1,085

1,166

-80

Loss on tax purpose reduction entry of non-current assets: 821; Loss on retirement of non-current assets: -192; Loss on
COVID-19: +947

-6,32015,154-21,475(－)

Depreciation

10,252

10,035216

EBITDA

4,397

32,004-27,606(-86.3%)

Interest anddividend income

350

580

-230

Interest expenses

1,036

1,143

-106

Net interest expenses

-686

-562

-124

Non-operating
incomeNon-operating
expenses

Ordinary income
Extraordinary
incomeExtraordinary
lossesProfit attributable toowners of parent*Impact of the COVID-19 pandemic:-27,800*EBITDA: Operating income + Depreciation

3

Segment Information(millions of yen)

1H FY2021
Results
Transportation

Real estate

Retail distribution

Leisure andservice

OthersAdjustments

Operatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
Operatingincome1H FY2020
Results

ChangeChange (%)

30,497

48,709-18,212-37.4%-7,0108,141-15,152－

43,88058,663-14,782-25.2%

8,190

10,248-2,057-20.1%

38,36048,195-9,834-20.4%-24

1,579-1,603－

3,290

17,960-14,669-81.7%-6,222

1,788-8,010

－

1,319

956

363

38.1%

-763

-4

-758

－

-9,117-9,275

158

－

-25

216

-241

－

4

Impact of the COVID-19 Pandemic
Outline of impact:
A state of emergency was declared in April, which brought the Keihan Group to a difficult business situation in the first quarterof this fiscal year. In particular, the transportation segment and the leisure and service segment were hard hit by decreases inusers due to voluntary restraints on outings. The retail distribution segment was affected by the suspension of stores under therecommendation of the central and local governments. In the second quarter, domestic demand gradually recovered while
inbound demand stagnated. Thus, the financial results for the second quarter were very severe, down year-on-year.

(yen)

Affected amounts:
Operatingrevenue

OperatingincomeMain Impact

Transportation-18.7 bn.

-17.6 bn.

Real estate-0.3 bn.

-0.2 bn.

Retail distribution-9.2 bn.

-1.6 bn.

Decrease in train and bus passengers
Decrease in showroom and rental meeting room
users
Decrease in commercial facility users

Leisure and service-15.1 bn.

-7.7 bn.

Decrease in hotel and leisure facility users-1 bn.

-0.5 bn.

Decrease in commercial facility users-44.5 bn.

-27.8 bn.

Others
Total

Accounting of fixed costs for idle facilities, etc.:
While the state of emergency was declared, 947 million yen of fixed costs involved in idle facilities, etc. (laborcosts, rent, depreciation, etc.) was recorded as loss on COVID-19 under extraordinary losses.

5Situation of Main Affected Segments
Railway (Keihan Electric Railway) Year-on-year Passenger Figures
(%)

10.0

0.8

-10.0

State ofemergency

-2.1

-30.0

-22.4

-50.0
-70.0

Jan.
1月

Feb.
2月

Mar.
3月

-49.9

-48.1

Apr.
4月

May
5月

-28.6

-26.9

-26.2

June
6月

July
7月

Aug.
8月

-28.0

Sep.
9月

-21.4

Oct.
10月

Department Store (Keihan Department Stores) Year-on-Year Operating Revenue
(%)

20.0
0.0
-20.0

Decrease in reaction tolast-minute demand before
consumption tax hike

Suspension ofsome stores
-1.9

-5.5

-40.0

-16.8

-60.0

1月
Jan.

2月
Feb.

-6.4

3月
Mar.

-6.5

-1.6

-7.4
-22.8

-53.0
4月
Apr.

-36.2
5月
May

6月
June

7月
July

8月
Aug.

9月
Sep.

10月
Oct.

Hotel Occupancy Rates(%) 100.0

80.0
60.0
40.0

82.1

Suspension and scaling
back of some hotels

65.5
56.6

6.3

20.0
20.2

0.0
1月
Jan.

51.0

35.4

74.0

2月
Feb.

3月
Mar.

4.4
4月
Apr.
Hotel Keihan
ホテル京阪

9.9

4.3

3.5

5月
May

19.6
7.6

6月
June

17.2
7月
July

Keihan Hotels & Resorts
京阪ホテルズ＆リゾーツ

26.5
25.5
8月
Aug.

38.6
47.9
33.2
9月
Sep.

10月
Oct.

6

Segment Information (Breakdown)
Consolidated subsidiaries: 42 companies (1 company added year-on-year)
Equity-method affiliates: 2 companies (no change year-on-year)
Transportation

Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd., and 12
other companies

Real estate

Keihan Holdings Co., Ltd., Keihan Dentetsu Real Estate Co., Ltd., Zero Corporation Co., Ltd., Keihan
Building Co., Ltd., and 8 other companies

Retaildistribution

Keihan Department Stores Co., Ltd., Keihan The Store Co., Ltd., Keihan Ryutsu Systems Co., Ltd.,
Biomarket Co., Ltd., and 1 other company

Leisure andservice

Hotel Keihan Co., Ltd., Keihan Hotels & Resorts Co., Ltd., Biwako Kisen Steamship Co., Ltd., and 5
other companies

Others

BIOSTYLE Co., Ltd. and Keihan Card Co., Ltd.

Operating Revenue by Segment
37.4％
43.8 bn. yen

26.0 ％

Operating Income by Segment
8.1 bn. yen

32.7％
38.3 bn. yen

30.4 bn. yen- 0 bn. yen

1.1 ％

運輸業
Transportation

不動産業
Real
estate

流通業
Retaildistribution

2.8 ％1.3 bn.

3.2 bn. yen

yen

レジャー・
Leisureandservice
サービス業

その他の
Others事業-6.2 bn. yen-7 bn. yen

Transportation
Real estate
運輸業
不動産業

-0.7 bn. yen

Retail流通業
distribution

Leisure andレジャー・service

Others

サービス業

事業

その他の

Note: Transactions among the segments were eliminated from the figures above. The percentages represent the composition rates of the segments.

7

Segment Information (Transportation)(millions of yen)

1H FY2021
Results

1H FY2020
Results

Change (%)

ChangeOperating revenue

30,497

48,709-18,212-37.4%

Railway

25,996

39,416-13,419-34.0%

Bus

8,608

14,193-5,585-39.4%

Elimination-4,107-4,900793－

Operating income-7,0108,141-15,152－

Railway-4,770

6,661-11,432－

Bus-2,243

1,470-3,713

－

3

10

-6

－

Elimination
Main factors affecting performance:• The railway business reported decreased revenues and profits because the number of passengers declined due to theimpact of the COVID-19 pandemic.
• The bus business reported decreased revenues and profits because share-ride revenues and regular tour revenues
declined due to the impact of the COVID-19 pandemic.

8

Operating Results for Transportation
Keihan Electric Railway
1H FY2021
Results

1H FY2020
Results

Change(millions of yen)(millions of yen)(millions of yen)%

16,62026,710-10,089

-37.8

9,616

17,913-8,297

-46.3

7,004

8,796

-1,791-20.4(thousands of people)(thousands of people)(thousands of people)%

99,732

152,834-53,102-34.7

40,64976,093-35,444-46.6

59,082

76,740-17,658-23.0

Passenger
transportation
revenue
Non-commuter
passesCommuterpassesNumber ofpassengers
Non-commuter
passesCommuterpasses

Passenger Transportation Revenue(millions of yen)

Main factor affecting non-commuter
passenger transportation revenue:• Impact of the COVID-19 pandemic:-8,266 (millions of yen)

15,00010,000

9,180

8,733

8,935

7,531

3,888

5,000
0

Change (%)

5,728

4,323

4,473

4,260

4,046

3,404

3,600

2019.1Q
FY20202019.2Q
FY20202019.3Q
FY20202019.4Q
FY20202020.1Q
FY20212020.1Q
FY2021

1Q

2Q

3Q

4Q

1Q

2Q

定期

Commuter

定期外

Non-commuter

Main factors affecting commuter
passenger transportation revenue:• Decrease in business commuter
pass: -970 (millions of yen)
• Decrease in school commuter pass:-632 (millions of yen)9

Segment Information (Real Estate)(millions of yen)

1H FY2021
Results

1H FY2020
Results

Change (%)

ChangeOperating revenue

43,88058,663-14,782-25.2%

Real estate

36,336

51,124-14,788-28.9%

Real estate sales

22,42937,515-15,086-40.2%

Real estate leasing service

12,061

11,793268

2.3%

Other businesses

1,845

1,815

29

1.6%

Construction

10,15010,626

-476

-4.5%

Elimination-2,606-3,088481－

Operating income

8,190

10,248-2,057-20.1%

Real estate

8,135

10,133-1,998-19.7%

Real estate sales

2,277

4,356

-2,078-47.7%

Real estate leasing service

5,632

5,555

77

1.4%

224

221

3

1.5%

Construction

-60

181

-241

－

Elimination

116

-66

182

－

Other businesses

Main factors affecting performance:• The real estate sales business reported decreased revenues and profits in reaction to strong sales of condominiums, including
The Kyoto Residence Gosho Higashi, in the same period of the previous year.
• The real estate leasing business reported increased revenues and profits year-on-year thanks to acquired properties in the firsthalf of this fiscal year that contribute to the full-year results.

10

Segment Information (Retail Distribution)(millions of yen)

1H FY2021
Results
Operating revenue

1H FY2020
Results

Change (%)

Change38,36048,195-9,834-20.4%

Department store

18,85824,201-5,342-22.1%

Store

12,447

14,954-2,507-16.8%

Shopping mall management

5,664

7,357

-1,693-23.0%

Others

3,179

3,935

-755

-19.2%

Elimination-1,789-2,253464－

Operating income

-24

1,579

-1,603－

Department store

-326

138

-465

－

Store

139

292

-153

-52.5%

Shopping mall management

345

1,019

-674

-66.2%

Others

-189

120

-309

－

7

7

-0

－

Elimination

Main factors affecting performance:• The department store business reported decreased revenues and profits due to the suspension of some stores amid the COVID19 pandemic.
• The store business reported decreased revenues and profits because commercial facilities near stations and in airports
struggled against the impact of the COVID-19 pandemic.
• The shopping mall management business reported decreased revenues and profits due to the suspension of KUZUHA MALL
and others amid the COVID-19 pandemic.

11Segment Information (Leisure & Service)(millions of yen)

1H FY2021
Results
3,290

1H FY2020
Results
17,960

Hotel

2,423

LeisureOperating revenue

Change (%)

Change-14,669-81.7%

15,838-13,414-84.7%

880

2,136-1,256-58.8%

Elimination

-12

-14

1

－

Operating income-6,222

1,788-8,010－Hotel-5,848

1,576-7,425－

Leisure

-381

202

-584

－

8

9

-0

－

1H FY2021
Results
17.4%
16.1%

1H FY2020
Results
93.0%
86.8%

Elimination

Hotel Occupancy Rates

Hotel Keihan
Keihan Hotels & Resorts

Change (pt.)-75.6 pt.
-70.7 pt.

Main factors affecting performance:• The hotel business reported decreased revenues and profits due to the suspension and scaling back of some hotels
amid the COVID-19 pandemic.
• The leisure business reported decreased revenues and profits due to the suspension of operations and services amid
the COVID-19 pandemic.

12

Consolidated Balance Sheets(millions of yen)

1H FY2021
Results

FY2020Results

ChangeMain factors of changes
Cash and deposits:+20,340
Land and buildings for sale: +6,448

Current assets

206,473

177,016

29,457

Non-current
assets557,388555,808

1,580

763,862

732,824

31,037

Current liabilities

172,733

167,695

5,037

Current portion of bonds: +9,970

Long-term
liabilities

346,321311,069

35,252

Bonds: +20,000
Long-term loans payable: +13,830

Total liabilities

519,055

478,765

40,290Net assets

244,806

254,058-9,252

Total liabilities and net
assets763,862

732,824

31,037

Interest-bearing debt

370,615

327,132

43,482

Total assets

Retained earnings: -8,196*Equity capital ratio: 31.5% (-2.6pt)

Bonds: +29,970
Loans payable: +21,511

13

Consolidated Statements of Cash Flows(millions of yen)

1H FY2021
Results

1H FY2020
Results

Cash flows from operating
activities-8,48728,197

Cash flows from investing
activities-12,110-12,379

ChangeMain factors of changes
Profit before income taxes: -27,261、-36,685 Changes in trade receivables: -11,181
268

Cash flows from financing
activities

40,938-20,187

61,125

Net increase (decrease) incash and cash equivalents

20,340-4,36824,708Cash and cash equivalents at
beginning of current period

14,911

21,377-6,466

Cash and cash equivalents
at end of fiscal period

35,251

17,00918,242

Proceeds from issuance of bonds:+29,843
Proceeds from long-term loans
payable: +13,620
Payments for redemption of bonds:+10,003

14

FY2021

Forecasts

15

Forecasts
We reported that it was difficult to make reasonable forecast calculations for FY2021 ending in March
2021 due to the large impact of the COVID-19 pandemic on our group business. However, inconsideration of our performance until the second quarter, we decided to announce our forecasts basedon currently available information.
Preconditions for forecast calculation:
Preconditions uniformly applied to each segment
 Economic activity in Japan is gradually recovering since bottoming out in April to May this year.
 The COVID-19 pandemic will not cause another state of emergency, recommendation of businesssuspension, or large-scale restrictions on outings.
 Inbound demand will not recover before the end of this fiscal year.
Main preconditions for each segment
Transportation

 Keihan Electric Railway will forecast passenger transportation revenues asfollows: recovery of non-commuter pass revenues in March 2021 to around 20% year-on-year; recovery of commuter pass revenues in the second half of
FY2021 to around -15% year-on-year.
 Route bus revenues will recover to around -10% in March 2021.

Real estate The impact of the COVID-19 pandemic on the real estate sales business andthe real estate leasing business will be mild.

Retaildistribution

 The department store business will record year-on-year revenues of around 10% in the second half of this fiscal year.

Leisure andservice The occupancy rate in the hotel business will recover to around 40 to 50% in
March 2021.

16

Consolidated Statement of Income(Performance Forecast)• The transportation business, the retail distribution business, and the leisure and service business reported significant decreases
in revenues due to the COVID-19 pandemic. Profits at each stage are forecast to largely deteriorate despite efforts in reducing
operating expenses, including labor costs and repair costs.
(millions of yen)

FY2021full-year forecasts

FY2020full-year results

ChangeChange (%)

Operating revenue

257,200

317,103-59,903-18.9%

Operating income-1,30031,123-32,423－

Ordinary income-600

29,886-30,486－

Profit attributable to ownersof parent-3,40020,121-23,521－

Capital expenditure

35,40029,324

6,075

20.7%

Depreciation

21,40020,784615

3.0%

EBITDA

20,10051,908-31,808-61.2%

Interest-bearing debt

356,000

327,132

28,867

8.8%

17.71

6.30

11.41

－

16.87

6.01

10.85

－

Interest and dividend
income

596

1,000

-403

-40.4%

Interest expenses

2,081

2,189

-107

-4.9%

Net interest expense-1,484-1,188-295－

Interest-bearing debt/
EBITDA multiple (Times)
Net interest-bearing debt/
EBITDA multiple (Times)

17Transition of Consolidated Operating Revenue(millions of yen)

350,000

322,276

326,159

99,28399,494

79,24173,819317,103

300,000
70,171

257,200

250,000
81,723200,000

148,968

Q3 to Q4

150,000
100,000

84,87874,16177,80464,09650,00080,331

78,68565,94844,1360
FY2018Results
in Mar. 20182018/3実績
results

FY2019Results
in Mar. 20192019/3実績
results

1Q

2Q

3Q

4Q

FY2020Results
in Mar. 2020
2020/3実績
results

FY2021

Forecasts
in Mar. 2021
2021/3予想
forecasts

3~4Q

18

Segment Information (Performance Forecasts)
Main factors affecting performance:• Transportation: Restraints on outings due to the impact of the COVID-19 pandemic• Real estate: Strong housing sales, and acquired properties in the first half of this fiscal year that contribute to the fullyear results• Retail distribution: Business suspension due to the impact of the COVID-19 pandemic• Leisure and service: Suspension and scaling back of business due to the impact of the COVID-19 pandemic(millions of yen)

FY2021full-year forecasts

OperatingTransportation revenue
Operating income
Operatingrevenue
Real estate
Operating income
Operating
Retailrevenue
distribution
Operating income
Operating
Leisure andrevenue
service
Operating income
Operatingrevenue
OthersOperating income
Operating
Adjustments revenue
Operating income

FY2020full-year results

Change69,20093,365-24,165-7,60010,862-18,462

109,000

110,228-1,22817,60016,906693

85,00098,186-13,186

1,300

3,258

-1,95810,00032,081-22,081-11,500

1,336-12,836

3,100

2,908

191

-1,500-921-578-19,100-19,667

567

400

-319

719

19

Operating Results for Transportation(Performance Forecasts) Keihan Electric Railway
FY2021full-year forecasts

FY2020full-year results

ChangeChange (%)(millions of yen)(millions of yen)(millions of yen)%

Passenger transportation
revenue

37,33451,481-14,147-27.5

Non-commuter passes

23,01634,379-11,362-33.1

Commuter passes

14,318

17,102-2,784-16.3(thousands of people)(thousands of people)(thousands of people)%

218,746

293,104-74,358-25.4

Non-commuter passes

97,232

145,643-48,411-33.2

Commuter passes

121,514

147,461-25,947-17.6

Number of passengers

Passenger Transportation Revenue (millions of yen)
60,00040,00035,27835,187

34,37923,01620,000
16,541

16,866

17,102FY2018Results
in Mar. 20182018/3実績

FY2019Results
in Mar. 20192019/3実績

FY2020Results
in Mar. 2020
2020/3実績

0results

results

定期

Commuter

定期外

Non-commuterresults

14,318FY2021
Forecasts
in Mar. 2021
2021/3予想
forecasts

20

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

FY2021full-year forecasts

FY2020full-year results

ChangeCapital Expenditure

35,40029,324

6,075

Transportation

12,50013,283-783

Real estate

11,40011,824-424

Retail distribution

700

1,073

-373

Leisure and service

2,400

1,933

466

200

862

-662

8,200

348

7,851

OthersAdjustments

21

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

FY2021full-year forecasts

FY2020full-year results

Change20,10051,908-31,808

Transportation

4,100

22,597-18,497

Real estate

24,00022,893

1,106

Retail distribution

2,600

4,513

-1,913

Leisure and service-10,000

2,775-12,775

Others-1,300

-807

-492

700

-64

764

EBITDA

Adjustments

22Response to the COVID-19 Pandemic
Cost reduction
 Operating expenses were reduced by 13.5 billion yen in this fiscal year.
Main Items

Details

Repair expenses

Executive compensation cut and labor
cost cut by furlough
Capital Expenditure project cut

Advertising expenses

Poster reduction

Power & fuel expenses
Other operating
expenses

Usage reduction

Personnel expenses

FY2021
Target13.5 bn. yen

1H FY2021
Result

5.9 bn. yen

Outsourcing expenses cut

Investment reduction
 Investment was reduced by 9.7 billion yen (21.5%) in this fiscal year relative to the original plan.
FY2021
FY2021
Reduction
Reduction rate
full-year forecasts
Initial Plan
amountCapital expenditure
35.4 bn.
45.1 bn.
9.7 bn.
21.5%

Securing liquidity on hand
 In September 2020, 30 billion yen of corporate bonds were issued to secure sufficient liquidity on
hand.
 For flexible financing, loan programs from financial institutions and the short-term corporate bondissuance limit were extended.

23

Revision of Dividend Forecast for FY2021
Dividend policy In order to achieve sustainable growth and increase corporate
Continuing stablevalue via proactive investments, and maintain performance-based
provision ofshareholder returns, the company will continue its policy of stabledividends
profit-sharing in consideration of equity capital and businessresults.

Revision of dividend forecast for FY2021
 Being severely affected by the COVID-19 pandemic, the transportation business, theleisure and service business and the retail distribution business are projected to post
losses for FY2021 (full year).
 In consideration of business results and the financial position for FY2021, based on
the company’s stable profit-sharing policy, the year-end dividend forecast is 25 yen
per share.

24

Future Business Direction for
the Keihan Group25

Termination of Existing Medium-term management plan
Termination of the Existing Medium-term management plan “Create Living,
Community, and Excitement” (FY2019 to FY2021)•

Due to the impact of the COVID-19 pandemic, the business environment has changed
significantly since the early planning stage.
• The quantitative target of the Medium-term management plan was mostly achieved as of
FY2020 if the impact of the COVID-19 pandemic is excluded.
⇒ Given that, although it is in the middle of FY2021, the existing Medium-term
management plan has now been terminated.

Quantitative target achievement status:
FY2020Results
EBITDAFY2020w/o pandemic impact(assumption)

FY2021
Target51.9 bn.

56.8 bn.

57 bn.

Net interest-bearing debt
/EBITDA multiple

6.01x

5.50x

6x level

ROE

8.3%

8.9%

8% or more

31.1 bn.

36 bn.

33.5 bn.

Operating income* EBITDA: Operating income + Depreciation
ROE: Net income to shareholders’ equity ratio26

Termination of Existing Medium-term management plan
Progress of main strategies & business strategies:

Business Strategies

Main Strategies

Status

Details

Completion Time(*)
Dec. 2018
FY2026

Redevelop Keihan areas Completed
Underway Renewing Hirakatashi Station
 Reconstruction of Yodoyabashi Midosuji Bldg.
 Promoting the Nakanoshima 4-chome
FY2024
International Hub for Medical Innovation project Redevelopment of the area around Hirakatashi Station FY2024
 Redevelopment of the area around Kyobashi Station
TBD

Co-create tourism
opportunity Opening of THE THOUSAND KYOTO
Jan. 2019
 Redevelopment of the area around Sanjo Station TBD
 Opening of GOOD NATURE STATION
Dec. 2019• Renewing Kitano-Hakubaicho Station
Mar. 2020• Renewing Kibuneguchi Station
Mar. 2020• Introduction of the 3000 series
Jan. 2021• Installing new ATS systems to the entire Keihan Mar. 2021
Railway network• Completing the Toranomon Hills Business Tower Jan. 2020
• Renewing FREST Matsui-Yamate Shop
Nov. 2018• Renewing KEIHAN CITY MALL
Mar. 2019• Renewing Kuzuha Golf Links
Sep. 2019• Opening of Hotel Keihan Tenmabashi-ekimae
Spring 2021
• Opening of Hotel Keihan Namba Grande
Spring 2023
(tentative name)Completed
Underway
Create relatable contents Completed
Transportation
Completed
Underway

Real estate
Retail distribution

Completed
Completed

Leisure and service

Completed
Underway* The completion time is stated for underway projects.

27

Future Business Direction
Factors that Change Consumer Behavior
Pandemic

Natural disasters

Employment &household budget

Aging society

Medium-to-long Term Changes in Lifestyle
Establishing health andprevention-conscious
behavior

Spreading new ways ofwork and life (remote
work, etc.)

Raising awareness ofenvironmental andsocial issues

Future Business Direction
 Given drastically changing lifestyles, the Keihan Group will steer its business toward
Safety & Security, Structural Reform, and BIOSTYLE in the future.
 The Keihan Group will implement measures in each segment based on this businessdirection to restore its management foundation.

Safety &Security

Structural
Reform

BIOSTYLE**BIOSTYLE: Lifestyle proposed by the Keihan Group as the Keihan version of the SDGs, aimed at achieving ahealthy, beautiful, and high-quality life and contributing to a recycling-oriented society

28

Measures by Segment (Safety & Security)
Safety &Security Providing products and services that can reassure customers evenunder a pandemic, natural disaster, or other insecure conditions

Main measures by segment
Segment

Measures■ Enhancing safety, disaster prevention (natural disasters) and hygiene (cabins andTransportation
stations) measures■ Prioritizing measures for safety, security and environmental protection, andReal estatedeveloping and promoting houses and facilities that can flexibly respond to changes
in customer needs
Leisure and■ Promoting products and services from the viewpoint of users
service

Railway safety and disaster prevention measures• The Comprehensive Training Center was newly
established in November 2020 to provide training toemployees of Keihan Electric Railway. Operation training
with a new simulator and other instructions are provided
at the center to further raise the safety awareness of
employees.
• To maintain and increase the operation safety level,
antiseismic measures, the update of substations, and theinstallation of continuous ATS systems handling large
amounts of information throughout the entire Keihan
Railway network were implemented in FY2021.

Operation training
facility with a new
simulator installed29

Measures by Segment (Safety & Security)
Expanding the premium car service• Car No. 6 of the 3000-series train will be
become a premium car in January 2021.
• Like the 8000-series premium car, fine ions areused to purify the air in the car. A device thatgenerates nanoeX* is installed. This service
provides reserved seats and a high-quality
travel space, so passengers can avoid
congestion and ensure safe mobility.

Developing condominiums that cooperatewith medical institutions, etc.
• Holistic support in cooperation with medical
institutions, etc., ranging from healthcare to
nursing care, is provided to residents
depending on their life stage.
Service examples: Health checks, consultations
with family doctors, home-visit medical
examinations, home nursing care, rehabilitation,etc.

* nanoeX is a trademark ofPanasonic Corporation.

Initiatives at Biwako Hotel• Biwako Hotel began to offer the Lakeside
Workation plan in September 2020, which allows
customers to avoid congestion and work in a
comfortable environment with a view of Lake Biwa.
• Biwako Hotel offers in-room dining and other ways
to avoid congestion.

30

Measures by Segment (Structural Reform)
Structural
Reform Establishing a system that can cover decreased demand in existing segments
and promoting products and services that can flexibly respond to new lifestyles

Main measures by segment
Segment

Measures■ Updating the train schedule to respond to changing customer needs and level out
Transportation
demand■ Streamlining the railway business using digital technology, etc.
Retail■ Building an e-commerce platform to promote unique products and services in
distribution
cooperation with group companies
Leisure and■ Making use of geographical advantages to utilize assets
service
Updating the train schedule to respond to changing customer needs• Reviewing the train schedule drastically to respond to changing
lifestyles (adjusting the number of train services, moving forward
last train times, etc.)

Increasing operation efficiency with digital technology• Using drones toinspect bridges andother railway facilities,
thereby increasing
operation efficiency• Using remote surveillance control systems, robots, etc. for
operation at stations, thereby providing efficiently operated services
Remotecontrol

Customer

Station staff

31

Measures by Segment (Structural Reform)
Building an e-commerce platform• Building an e-commerce website that offers
Keihan Group’s products and services in a
simplified category structure• Making the best use of know-how from groupcompanies to offer rare, special, and highly
professional products and services, including
those selected or planned by department store
buyers and food planned by top-notch chefs

Making use of geographical advantages to promote the use of hotels• Kyoto Tower Hotel Annex, which is accessedwith a three-minute walk from Kyoto Station,
was renovated and reopened by making useof its geographical advantage to install acoworking space in a part of the ground floor
which used to be the restaurant REGINA.
• Other hotels are exploring the lease of someland lots to secure profits by making use of
their geographical advantages.

32Measures by Segment (BIOSTYLE)
BIOSTYLE

 Promoting products and services that can increase people’s life
value and solve social issues at the same time

Main measures by segment
Segment

Measures

Real estate■ Prioritizing measures for safety, security and environmental protection, and developing and promoting
houses and facilities that can flexibly respond to changes in customer needs■ Working on the vacant house issue and other issues to promote sustainable community development
in areas along the Keihan Railway lines

Leisure andservice■Promoting BIOSTYLE (“Ethical,” “Well-being,” and “Entertainment”) to differentiate the company fromcompetitors and enhance its competitive edge

Across theGroup■Promoting and establishing the BIOSTYLE PROJECT within the Group (supporting the achievement of
the SDGs and the commercialization of related products and services, and promoting communicationin consideration of ESG)
BIOSTYLE PROJECT Guidelines

Activity Guidelines• BIOSTYLE is regarded as the Keihan versionof the SDGs, and the guidelines are
established to encourage group companies toactively work on the BIOSTYLE PROJECT.

Priority SDGs

GOOD for Health

GOOD for Minds

GOOD for Locals

GOOD for Social

GOOD for EarthGroup
Guidelines*BIOSTYLE• BIOSTYLE is a lifestyle newly proposed by
the Keihan Group, aimed at achieving ahealthy, beautiful, and high-quality life andcontributing to a recycling-oriented society.

GOOD for KEIHAN Brand

GOOD for KEIHAN Business33

Measures by Segment (BIOSTYLE)
House building in consideration of theenvironment and health• Zero Corporation opened the Zero Home Moriguchi
Housing Exhibition Ground in July 2020, proposing ZEH(net zero energy house) and other environmentallyfriendly houses.
• The company also proposes ways to utilize used houses
and vacant houses, thereby contributing to sustainablecommunity development.
• All new houses built and sold by the company incorporatea photocatalytic coating that produces antibacterial andantiviral effects.

Opening a glamping facility• Keihan Dentetsu Real Estate will open a glamping facility in acompany-owned field adjacent to the Omi Maiko lagoon on
Lake Biwa, Shiga Prefecture in April 2021.
• People can experience rich natural surroundings, including
Lake Biwa and the Hira Mountains, by making a tour of thelagoons on Lake Biwa, observing wild birds and aquatic
creatures native to Lake Biwa, and enjoying meals in the great
outdoors.

• The company aims to operate the business by emphasizing
coexistence with nature through natural environment surveys
and rare species conservation.

Image

34

Measures by Segment (BIOSTYLE)
BIOSTYLE initiatives at hotels■Ethical
Considering the environment, people and the entire
community• BIOSTYLE Co., Ltd. will introduce its originalcosmetics brand, NEMOHAMO, as hotel
amenities.
• Restaurants will use organic
vegetables and consume
local produce.

■Well-being

GOOD NATURE STATION
WELL-certified, LEED-certified, with one
Michelin star and three pavilions earned• In August 2020, GOOD NATURE HOTEL KYOTO wasawarded WELL* (v1) Certification at the Gold level, andGOOD NATURE STATION was awarded LEED*
Certification at the Silver level.
• Furthermore, in October 2020, three restaurants were
given one star, while the hotel was rated as threepavilions in the Michelin Guide Kyoto Osaka +Okayama 2021.

Aiming to enjoy physical, mental and social health andsatisfaction• Providing visibly healthy food,mainly salads• Offering yoga opportunities on
the rooftop terrace for relaxing■Entertainment
Aiming to add value to experience• Renovating hotel rooms toconcept rooms in collaboration
with Keihan Railway• Examining e-sports-related
services• Offering special experience plans to visit nonpublic spots of famous shrines and temples• GOOD NATURE STATION will aim to grow its appeal
as the hub for promoting the BIOSTYLE PROJECT anda commercial facility that provides services pleasing tocustomers.
*WELL Certification:Building and indoor environmental assessment
system that focuses on the health and comfort ofresidents living and working in buildings*LEED Certification: Environmental assessment system of the built
environment (architecture and city environment)

35

Long-term management strategy
 To achieve sustainable growth in society during and after the COVID-19 pandemic, the KeihanGroup will promote the main strategies advocated in the long-term management strategy
toward FY2027 while reviewing them according to the changing business environment.
* While assessing the rapidly changing business environment in the immediate future, we will
implement the main strategies and measures based on Safety & Security, Structural Reformand BIOSTYLE to restore the company’s management foundation.

Long-term Management Strategy (FY2019 to FY2027)

Redevelop Keihan areas
Medium-term
management plan
“Create Living,
Community, andExcitement” (terminated)

Future business direction:
Safety & Security
Structural Reform
BIOSTYLE

Co-create tourism opportunity
Create relatable contents

2018

2019

Main events/
projects

2020…………………………………
Tokyo Olympic Games

2025

2026
IR (Integrated Resort)in Yumeshima, Osaka

Expo 2025
Osaka, Kansai

36

Main Strategies
Redevelop
Keihan areas• Increasing the value of the areas along the Keihan Railway lines is the basis for the
Keihan Group’s business. So, we will continue developing the Yodoyabashi,
Nakanoshima and Hirakatashi station areas in line with changing lifestyles.

Co-create
tourism
opportunity• In anticipation of the medium- to long-term recovery of the tourism market, we willassess the tourism situation during and after the COVID-19 pandemic and thendevelop the Sanjo station area, etc.

Create relatable
contents• The COVID-19 pandemic has brought BIOSTYLE to the attention of customers.
Given that, the Keihan Group will promote and establish the BIOSTYLE PROJECT.

2019
Reconstruction of
Yodoyabashi Midosuji
Bldg.

Redevelop
Keihan areas

Promoting the Nakanoshima
International Hub for Medical
Innovation Project

Redevelopment of the areaaround Hirakatashi Station

2020

Establishment of the urban
development plan ○

2021

2022

○ Start ofdemolition work

2023

2024

○ Start ofconstruction work

2025

2026

2027

Completion ●Opening of the International Hub for Medical Innovation ●Establishment of the urban
development plan ○○ Launch of theredevelopment project

Company-owned
area opening ○Project scheduled tobe completed ●Regaining the glory of
Osaka’s east to west axis

Redevelopment of the area around Kyobashi
Station, extension of the Nakanoshima LineCo-create
tourism
opportunity

Redevelopment of the areas
around Sanjo, Demachiyanagi
and Chushojima Stations

Developing the Sanjo Station area, etc.

Createrelatable
contents

Promotion of BIOSTYLE

Opening of GOOD
NATURE STATION● Promoting and establishing the BIOSTYLE PROJECT throughout the entire Group37