FY2007 ended March 31, 2007

Financial results presentation

May 21, 2007
Keihan Electric Railway Co., Ltd.
（Tokyo Stock Exchange 1st/ Osaka Securities Exchange 1st 9045 http://www.keihan.co.jp/）◆Notes on forecasts◆
Descriptions of business forecasts and future prospects are based on current information and certain assumptions aboutfactors that may affect future business. The actual results of operating performance may differ from these forecasts.

Contents
Overview of FY2007 Financial Results2

Consolidated Statements of Income

3

Consolidated Balance Sheets

4

Movement of FY2007

5

Trend of Land for Sale (Non-consolidated)

7

Consolidated Statements of Cash Flows8

Trend of Consolidated Interest-Bearing Debt / EBITDA

9Non-consolidated Statements of Income

10

Overview of FY2007 Business Results by Segment

11

Consolidated-targeted Companies

12Segment Balance

13

Changes in Segment Balance

15

Segment Movement for FY2007

17

Results of Transportation

18

Results of Real Estate

21

Results of Retail

23

Results of Leisure and Service

25

Results of Others

27

Business Results Forecast of FY2008

29

Forecast of Consolidated Business Results

30

Forecast of Non-consolidated Business Results

32

1Overview of FY2007 Financial Results2Consolidated Statements of Income(Millions of yen)

FY2007

FY2006

ChangesChanges(%)

Operating revenue

267,273

263,009

4,263

1.6

Operating income

21,227

18,612

2,614

14.0

Ordinary income

17,375

12,283

5,091

41.5

Net income

7,841

7,232

609

8.4

ROA

1.4

1.3

0.1

ROE

5.7

5.3

0.4

EBITDA

36,92634,8932,033

5.8

Interest-bearing debt

267,046

272,433(5,387)

(2.0)

7.2

7.8(0.6)

interest-bearing debt / EBITDA* ROA : Net income to total assets

ROE : Net income to shareholders’ equity
Interest-bearing debt: Loans + bonds + accounts receivable for JRTT
interest-bearing debt / EBITDA: Interest-bearing debt / (operating income + depreciation)3

Consolidated Balance Sheets(Millions of yen)

FY2007

FY2006

Changes

Changes (%)

Total assets

577,967

568,604

9,363

1.6

Liabilities

439,032

431,730

7,302

1.7

Net assets

138,935

136,873

2,061

1.5

577,967

568,604

9,363

1.6

Liabilities and net assets* Including minority interest in net assets of FY2006.

Main factor of increase in total assets: Increase in cash and bank deposits
Main factor of increase in liabilities: Increase in notes and accounts payable
Main factor of increase in net assets: Increase in retained earnings

4Movement of FY2007 (1)Increase in revenue and income
Operating revenue --- + 4,263 million yen
Revenue increase due to increasing condominium sales
Revenue increase due to new consolidation

Operating income ---- + 2,614 million yen
Income increase due to increasing condominium sales

Ordinary income ---- + 5,091 million yen
Income increase due to decrease of non-operating expenses

Net income ------------ + 609 million yen
Loss on revaluation of land sales due to changing tolower of cost or market
Allowance for loss due to liquidation of related company
5Movement of FY2007 (2)Measures for improving financial transparency
Precedent application of lower of cost or market into the sales of lands and buildings--- Extraordinary loss 1,681 million yen
Operating expenses 596 million yen
Provision of reserve for loss on liquidation of related company--- Extraordinary loss

1,769 million yen

6Trend of Land for Sale (Non-consolidated)(Millions of yen)(Thousands of m2)

120,000
Book Value (Millions of yen)
Area (Thousands of m2 )

3,000

90,0002,000
60,0001,000

30,0000000.3

Land for sale (Millions of yen)
2

Area (Thousands of m )

01.3

02.3

03.3

04.3

02.3

03.3

05.3

06.3

00.3

01.3

117,755

112,987

78,33367,26063,91559,25950,66045,934

3,180

3,159

3,045

2,754

2,704

2,640

2,238

2,222

7

04.3

07.3
05.3

06.3

07.3

Consolidated Statements of Cash Flows(Millions of yen)

FY2007

FY2006

Changes

Changes(%)

Operating cash flows

35,80534,077

1,7285.1

Investing cash flows(16,148)(24,323)

8,175

33.6

Financing cash flows(9,074)(14,812)

5,738

38.7

Cash and cash equivalents at end of fiscal year

26,574

15,846

10,727

67.7

Interest-bearing debt* at end of fiscal year

267,046

272,433(5,387)(2.0)

Investing cash flows: Decrease in purchase of fixed assets
Financing cash flows: Decrease in redemption of bonds*Interest-bearing debt: Loans + bonds + accounts payable for JRTT8Trend ofConsolidated interest-bearing debt / EBITDA(Billions of yen)(Times)350
350,000

Consolidated Interest-bearing debt
330,000330

11Interest-bearing debt/EBITDA
10310,000
310
9290,000290

270,000270

8250,000
250

700.3

01.3

02.3

Interest-bearing debt (Millions of yen)
EBITDA (Millions of yen)Interest-bearing debt/ EBITDA (Times)

03.3
00.3
339,715
31,496
10.8

04.3

01.3
321,340
32,414
9.9* EBITDA = Operating income + Depreciation

902.3
312,820
29,294
10.7

05.3
03.3
308,704
35,8288.6

04.3
290,742
33,759
8.6

06.3
05.3
285,382
34,307
8.3

07.3
06.3
272,433
34,8937.807.3
267,046
36,925
7.2

Non consolidated Statements of Income(Millions of yen)

FY2007 FY2006
Operating revenue
Railway operation
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOperating income
Railway operation
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOrdinary income
Net income

82,64854,60528,042
14,119
11,5752,346
17,263
9,837
7,425
2,614
5,212
(400)
13,576
4,476

79,95454,52325,43011,351
11,1692,909
14,788
9,256
5,532
965
4,669
(102)
8,998
4,006

Changes
(%)
2,693
3.481
0.2
2,612
10.3
2,768
24.4
406
3.6(562)(19.3)
2,475
16.7
581
6.3
1,893
34.2
1,649
170.9
542
11.6(298) (292.6)
4,577
50.9
470
11.7

Changes* For passenger transportation income, please refer to “Operating Results for Transportation (Keihan Electric Railway)” on page 20.

10Overview of FY2007 Business Results by Segment

11Consolidated-targeted Companies
Scope of Consolidated Accounting
79 companies [Our company, 75 subsidiaries including 45 consolidated subsidiaries, and 3 affiliates including 2 equity method affiliates](1) Transportation (26 companies)(4) Leisure and Service (30 companies)
Business contents
RailwayCompany nameBusiness contents
Hotel

Our company, Eizan Electric Railway Co., Ltd.*1,Keifuku Electric Railroad Co., Ltd*1

Hotel Keihan Co., Ltd.*1,Mt. Hiei Cable Car Co., Ltd.*1,

Kyoto Tower Co., Ltd.*2

Restaurant

Nakanoshima Rapid Railway Co., Ltd.*2

Station service
management

Keihan Station Management Co., Ltd*1

BusKeihan Bus Systems Co., Ltd. *1, Keihan Bus Co.,Ltd. *1,

Company name
Biwako Hotel Co., Ltd.*1,

Keifuku Electric Railroad Co., Ltd.*1,
Keihan Restaurant Co., Ltd.*1,
Biwako Kisen Restaurant Co., Ltd.*1,Keihan Bus Service Co., Ltd,*1
Juicer Bar Corporation Co., Ltd.*1

Kojak Bus Co., Ltd. *1, Keihan Uji Bus Co., Ltd. *1,

Sightseeing ship

Kyoto Bus Co., Ltd. *1, Keifuku Bus Co., Ltd. *1,Osaka Aqua Bus Co., Ltd. *1

Keihan Kyoto Kotsu Co., Ltd. *1,Taxi

Amusement park
Automobile
maintenance service
Advertising
TouristWelfare for elderly andnursing care
Car road
Golf course

Keihan Taxi Systems Co., Ltd. *1,
Keihan Taxi Co., Ltd. *1, Tsuruga Keihan Taxi Co., Ltd. *1,Kisen Taxi Co., Ltd. *1, Uji Keihan Taxi Co., Ltd. *1,
Osaka Keihan Taxi Co., Ltd. *1,

Other 7 companies(2) Real estate (10 companies)
Business contents
Real estate sales

Company nameOur company, Keifuku Electric Railroad Co., Ltd.*1,
Our company, Keifuku Electric Railroad Co., Ltd.*1,

KT Motors Co., Ltd.*1
Keihan Agency Co., Ltd.*1
Keihan Travel Service Co., Ltd.*1
Keihin Life Support Co., Ltd.*1
Mt. Hiei Driveway Co., Ltd.*1
Kuzuha Public Golf Course Co., Ltd.*1(5) Others (10 companies)

Keihan Building Co. Ltd. *1, Mikuni Kanko Sangyo Co., Ltd. *1,

Business contents
Utility work
Landscaping
Survey and design
Specific-purpose financing
Credit card

Osaka Merchandise Mart Corporation Co., Ltd.*2

Other 4 companies(3) Retail (7 companies)
Business contents
Department storeStoresShopping mallmanagement
Construction materialsales

Our company

Other 13 companies includes 1 consolidated subsidiary

Keihan Dentetsu Real Estate Co.,Ltd. *1

Real estate leasing
service

Biwako Kisen Steamship Co.,Ltd*1,

Business contents
Keihan Department Stores Co., Ltd.*1
Keihan The Store Co.,Ltd.*1

Company nameKeihan Engineering Service Co.,Ltd*1
Keihan Gardening Co., Ltd*1
Kanko Co., Ltd.*1, Soil Engineering Co., Ltd*1
Keihan Financial Management Co., Ltd*1
Keihan Card Co., Ltd*1
Other 4 companies

Keihan Ryutu Systems Co., Ltd*1,(As of March 31, 2007）

Keihan Sangyo Co., Ltd.*1

Other 3 companies

1.＊1 Consolidated subsidiaries ＊2 Equity method affiliates 2. In the above numbers, our company and Keifuku Electric Railroad Co., Ltd. are redundantly included.
2. Of the consolidated subsidiaries, Keifuku Electric Railroad Co., Ltd. is listed on the second section of the Osaka Securities Exchange.
4. In March 2006, Keihan Engineering Service Co., Ltd. and Keihan Construction Co., Ltd. were merged, and all stocks of Seiko Kogyo Co., Ltd. were transferred to Shiomi Holdings Co., Ltd.
In April 2006, Keihan Bus Co., Ltd., Keihan Uji Kotsu Co., Ltd., and Keihan Uji Kotsu Tanabe Co., Ltd. were merged, and Keihan Ryutsu Systems Co., Ltd. and Keihan Dentetsu Shoji Co., Ltd.
were merged. In January 2007, Keihan Uji Service Co., Ltd. was completed to liquidate.

12

Segment Balance (1)(Millions of yen)

<Operating revenue>
Others
Leisure and service
28,606
10.7%

Retail7,602
2.8%

Transportation
86,01032.2%

111,40341.7%

33,649
12.6%

Real estate* Operating revenue for external customers

13Segment Balance (2)(Millions of yen)

<Operating income>
10,336
10,000

9,217

8,000
6,000
4,000
1,366

2,000

280

0

Transportation

Real estate

Retail14

Leisure andService

18

OthersChanges in Segment Balance (1)(Millions of yen)

<Operating revenue>
120,000
100,000
80,000Transportation
Real estate
Retail

60,000

Leisure and service
Others

40,00020,000
000.3

01.3

02.3

03.3

04.3

05.3
15

06.3

07.3

08.3
Forecast

Changes in Segment Balance (2)(Millions of yen)

<Operating income>
12,00010,0008,000

Transportation
Real estate

6,000

RetailLeisure and service
Others4,000
2,0000- 2,000

00.3

01.3

02.3

03.3

04.3

05.3

1606.307.3

08.3
Forecast

Segment Movement for FY2007[Transportation]<Revenue increase of 932 million yen, and income increase of 884 million yen>
Railway operation --- The downward trend for the number of passengers has ceased
Bus --- The number of contracts for operation bases with local government has increased andpassenger traffic receipts are favorable.
[Real estate]<Revenue increase of 7,527 million yen, and income increase of 2,684 million yen>
Real estate sales --- Number of condominium sales has increased.
[Retail]<Revenue increase of 4,688 million yen, and income decrease of 122 million yen>
Department store --- Number of competitive stores has increased.
Construction material sales --- Number of orders has increased.
[Leisure and Service]<Revenue increase of 2,343 million yen, and income decrease of 12 million
yen>
Juicer Bar Corporation --- New consolidation and expansion of stores
Sightseeing ship --- Staying at Otsu Prince Hotel when calling at the port
[Others]<Revenue decrease of 10,101 million yen, and income decrease of 936 million yen>
Civil engineering and construction---Sold out at the end of the previous fiscal year

17Results of Transportation (1)Business results(Millions of yen)

FY2007

Operating revenue

FY2006

Changes

Changes (%)

87,81786,885932

1.1

Railway operation

57,63257,491141

0.2

Station service management

5,358

5,223

135

2.6

Bus

25,16724,313

853

3.5

Taxi

5,613

5,613

00.0

Elimination(5,954)(5,756)(198)－Operating income

10,336

9,452

884

9.4

Depreciation

10,06910,257(187)(1.8)

Capital expenditures

9,578

8,522

1,056

12.4

18Results of Transportation (2)Trend of operating revenue(Millions of yen)

60,000Railway operation

40,000Station service management

BusTaxi

20,000

000.3

01.3

02.3

03.3

04.3
1905.306.3

07.3

Results of Transportation (3)Operating results for transportation (Keihan Electric Railway)
FY2007

FY2006

Changes

Changes(%)(Thousands of people)

291,712294,114(2,402)(0.8)

Commuter passes（ditto）

150,480

157,763(7,282)(4.6)

Non-commuter passes（ditto）

141,231

136,350

4,880

3.6

Passenger transportation
revenue（Millions of yen)

51,361

51,375

(14)

(0.0)

（ditto）

51,36051,374

(13)

(0.0)

Commuter passes（ditto）

17,754

18,721(967)(5.2)

Non-commuterpasses(ditto）

33,60532,652953

2.9

Carriage on parcels（ditto）

11(0)(27.8)

Miscellaneoustransportation revenue（ditto）

3,244

3,147

96

3.1

Total（ditto）

54,60554,52381

0.2

Transportation revenue

Number of passengers

Passenger fare20

Results of Real Estate (1)Business results(Millions of yen)

FY2007

FY2006

Changes

Changes(%)

41,52233,995

7,527

22.1

Real estate sales

27,86520,807

7,057

33.9

Real estate leasing service

15,62615,197429

2.8

Elimination(1,969)(2,009)40－

Operating income

9,217

6,533

2,684

41.1

Depreciation

3,262

3,171

91

2.9

Capital expenditures

3,756

6,667

(2,911)(43.7)

Operating revenue

21

Results of Real Estate (2)Trend of operating revenue(Millions of yen)

30,00020,000Real estate sales
Real estate leasing service

10,000

000.3

01.3

02.3

03.3

04.3

05.3

22

06.3

07.3

Results of Retail (1)Business results(Millions of yen)

Changes

Changes(%)

107,094

4,688

4.4

56,32659,280(2,953)

(5.0)

Store

28,341

28,830(489)(1.7)

Shopping mall management

10,371

9,806

564

5.8

Construction material sales

19,875

15,406

4,469

29.0

Elimination(3,131)(6,229)3,097－

Operating income

1,366

1,488

（122)

(8.2)

Depreciation

1,013

1,198(184)(15.4)

Capital expenditures

1,774

4,648

(2,874)(61.8)

FY2007

FY2006

111,783

Department store

Operating revenue

23Results of Retail (2)Trend of operating revenue(Millions of yen)

60,00040,000Department store
Store
Shopping mallmanagement
Construction materialsales

20,000

000.3

01.3

02.3

03.3

04.3
2405.306.3

07.3

Results of Leisure and Service (1)Business results(Millions of yen)
FY2007

FY2006

Changes

Changes (%)

Operating revenue

30,05527,711

2,343

8.5

Hotel

10,177

10,203

(25)

(0.2)

Restaurant

8,314

8,238

76

0.9

Sightseeing ship

2,796

2,539

257

10.1

Amusement park

2,346

2,909(562)(19.3)

Automobile maintenance service

2,292

2,195

97

4.5

Advertising

2,112－

2,112－

Tourist

878

906

(27)

(3.1)

Welfare for elderly and nursing care

768－

768

－

Car road631

661(30)(4.5)

Golf course

442

437

51.2

Photograph－27(27)(100.0)Elimination

(707)

(406)

(301)

－

Operating income

280

292

(12)

(4.2)

1,200

1,236

(36)

(3.0)

664

534

129

24.2

Depreciation
Capital expenditures

25

Results of Leisure and Service (2)Trend of operating revenue(Millions of yen)

12,00010,000

Hotel
Restaurant

8,000

Sightseeing ship
Amusement park
Automobile
maintenance service
Advertising
Tourist

6,000

4,000

Welfare for elderly
and nursing care

2,000

Car road
Golf course

000.3

01.3

02.3

03.304.3
26

05.3

06.3

07.3

Results of Others (1)Business results(Millions of yen)

FY2007

FY2006

Changes

Changes (%)

Operating revenue

11,494

21,595(10,101)(46.8)

Utility work

7,081

6,465

616

9.5

Landscaping

2,001

2,028

(27)

(1.3)

-

12,095(12,095)(100.0)

3,366

3,319

46

1.4

Specific-purpose financial
service

164

148

16

10.9

Credit card

685

489

196

40.2

Elimination(1,804)(2,950)1,145-

Operating income

18955

(936)

(98.1)

Depreciation

151

416

(264)

(63.5)

Capital expenditures

46254

(207)

(81.6)

Civil engineering andconstruction
Survey and design27

Results of Others (2)Trend of operating revenue(Millions of yen)

8,000

6,000
Utility work
Landscaping
Survey and design
Specific-purpose
financial service
Credit card

4,000

2,000

0
00.3

01.3

02.3

03.3

04.3
28

05.3

06.3

07.3

Business Results Forecast of FY2008

29

FY2008

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

FY2008
ForecastFY2007
Results

ChangeChange(%)

Operating revenue

254,000

267,273(13,273)(5.0)

Operating income

15,50021,227(5,727)(27.0)

Ordinary income

10,80017,375(6,575)(37.8)Net income

7,600

7,841(241)(3.1)

EBITDA

32,72036,926(4,206)(11.4)

Capital expenditures

19,70015,806

3,894

24.6

Interest-bearing debt

270,000

267,046

2,954

1.1

8.3

7.2

1.1

interest-bearing debt / EBITDA*

Effect of depreciation due to the revision of taxation system for FY2008: 1,114 million yen* Interest-bearing debt: Loans + bonds + accounts payable for JRTT
interest-bearing debt / EBITDA: Interest-bearing debt / (operating income + depreciation)30

FY2008

Forecast of Consolidated Business Results (2)By segment
Operating revenue
Transportation
Real estate
RetailLeisure and service
OthersElimination
Operating income
Transportation
Real estate
RetailLeisure and service
OthersElimination
Ordinary income
Net income(Millions of yen)

FY2008
Forecast
254,000
87,40030,300110,300
30,40010,600(15,000)
15,500
8,100
5,900
1,000
600
50(150)10,8007,600
31FY2007
Results
267,273
87,817
41,522
111,783
30,055
11,494(15,400)
21,227
10,336
9,217
1,366
280
18
7
17,375
7,841

Change(13,273)(417)(11,222)(1,483)345(894)
400(5,727)(2,236)(3,317)(366)
320
32(157)(6,575)(241)

Change (%)
(5.0)
(0.5)
(27.0)
(1.3)
1.1
(7.8)
－(27.0)(21.6)(36.0)(26.8)
113.7
173.2
－
(37.8)(3.1)

FY2008

Forecast of Non-consolidated Business Results (1)(Millions of yen)

Operating revenue
Railway operation
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOperating income
Railway operation
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOrdinary income
Net income

FY2008
Forecast
74,00054,35019,6505,540
11,5602,550
12,6208,020
4,600(310)5,140(230)
9,100
5,420

Effect of depreciation due to the revision of taxation system for FY2008: 805 million yen

32

FY2007
Results
82,64854,60528,042
14,119
11,5752,346
17,263
9,837
7,425
2,614
5,212
(400)
13,576
4,476

Change(8,648)(255)(8,392)(8,579)(15)
204(4,643)(1,817)(2,825)(2,924)(72)
170(4,476)944

Change(%)(10.5)(0.5)(29.9)(60.8)(0.1)
8.7(26.9)(18.5)(38.1)－(1.4)
42.6(33.0)
21.1

FY2008

Forecast of Non consolidated Business Results (2)Operating results for transportation (Keihan Electric Railway)
FY2008
ForecastFY2007
Results

Changes Changes (%)(Thousands ofpeople)

290,396291,712(1,316)(0.5)

Commuter passes(ditto)145,624

150,480(4,856)(3.2)

Non-commuter passes(ditto)144,772

141,231

3,540

2.5

Passenger transportation
revenue（Millions of yen)

51,19251,361

(169)

(0.3)

Passenger fare(ditto)51,191

51,360

(169)

(0.3)

Commuter passes(ditto)16,82417,754

(930)

(5.2)

Non-commuterpasses(ditto)34,36733,605761

2.3

Carriage on parcels(ditto)

1

1

017.1

Miscellaneous transportation
revenue(ditto)

3,158

3,244

(86)

(2.7)

Total(ditto)

54,35054,605

(255)

(0.5)

Transportation revenue

Number of passengers

33