First Half of FY2015(Ended September 30, 2014)

Financial Results Presentation

November 12, 2014
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 the First Half of FY2015
Financial Results

Consolidated Statements of Income(Millions of yen)
1H FY2014
Results

1H FY2015
Results

Operatingrevenue

131,225

128,239

Operatingincome13,061

13,320Ordinary
income11,266

11,779Net income

7,737

8,152

EBITDA

21,30721,750Depreciation

8,245

8,429

Change-2,986(-2.3%)

259(2.0%)

513(4.6%)

415(5.4%)

443

Main factors of changes

April 2014
Estimate

Transportation +51, Real estate -3,787, Retail +916,
Leisure and service +830, Others +60

127,800

Transportation +432, Real estate -1,241, Retail +243,
Leisure and service +794, Others -0

10,200Non-operating income -5(Dividends income +32, Miscellaneous income -37)
Non-operating expenses -259
(Interest expenses -184, Miscellaneous expenses -75)

8,500

Extraordinary income -254
(Gain on sales of investment securities -616)
Extraordinary loss -89 (Loss on sale of fixed assets -96)

5,800

EBITDA: Operating income + Depreciation(2.1%)

183-(2.2%)[Changes in scope of consolidation and application of the equity method (from the previous fiscal year end)]
Consolidated subsidiaries:
37 companies (No change)
Equity method affiliates:
2 companies (No change)2Consolidated Balance Sheets(Millions of yen)
FY2014
Results

1H FY2015
Results

ChangeMain factors of changes

Current assets

147,216

149,053

1,836

Land and buildings for sale
Cash and deposit
Notes and accounts receivable

Fixed assets

523,965

522,356-1,609Tangible fixed assets-1,964

671,182

671,409

227

Current liabilities

179,858

198,161

18,303

Short-term loans
Short-term bonds
Accounts payable+20,199+13,000-13,407

Long-term liabilities

321,459

298,293-23,166

Long-term loans
Bonds-13,069-10,125

Total liabilities

501,318

496,455-4,862

Net assets

169,864

174,954

5,090

Total liabilities and net
assets671,182

671,409

227

Total assets

Interest-bearing debt at endof fiscal period

321,044

329,6638,618

Retained earnings* Equity capital ratio

Short-term bonds payable
Loans payable
Bonds
Long-term accounts payable* Interest-bearing debt: Loans payable + bonds + short-term bonds payable + accounts payable for Japan Railway
Construction, Transport and Technology Agency (JRTT)

3+17,779-10,255-8,019+4,83025.7% (+0.8pt)+13,000+7,130-10,165-1,345

Consolidated Statements of Cash Flows(Millions of yen)
1H FY2014
Results

1H FY2015
Results

ChangeMain factors of changes

Operating cash flows

2,208-3,915-6,123

Change in inventories
Change in notes and accounts receivable-8,684+3,178Investing cash flows-9,068-12,042-2,973

Sales of investment securities
Sales of fixed assets-2,506-630

Financing cash flows

-273

5,991

6,265

Change in short-term bonds
Decrease in bonds+14,000-9,889Net increase (decrease) in cash
and cash equivalents-7,133-9,966-2,832

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

-

10

10

Cash and cash equivalents at end ofinterim period

15,66915,875206

4

Segment Information(Millions of yen)
1H FY2014
Results

1H FY2015
Results

Change (%)

ChangeOperating revenue

131,225

128,239-2,986-2.3%

Transportation

45,05645,10851

0.1%

Real estate

31,81428,027-3,787-11.9%

Retail

45,777

46,693916

2.0%

Leisure and service

14,035

14,865

830

5.9%

801

862

60

7.6%

Elimination-6,260-7,317-1,056-

Operating income

13,061

13,320259

2.0%Transportation

4,613

5,046

432

9.4%

Real estate

6,434

5,193

-1,241-19.3%

Retail

1,128

1,372

243

21.6%

Leisure and service

853

1,648

794

93.1%

Others

-5

-5

-0

-

Elimination

36

66

29

-

Others5

Segment Information (Breakdown)[Consolidated subsidiaries] 38 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 12 other companies

Real estate

Keihan Electric Railway Co., Ltd., Keihan Dentetsu Real Estate Co., Ltd., Eastern Kogyo Co., Ltd., and 5 other companies

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

Leisure and service
OthersHotel Keihan Co., Ltd., Kyoto Tower Co., Ltd., Kyoto Century Hotel Co., Ltd., Biwako Kisen Steamship Co., Ltd., and 6 othercompanies
Keihan Card Co., Ltd.

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

Others¥0.8 billion (0.6%)

Others¥-0 billion (-0.0%)

Leisure and service¥14.8 billion (11.0%)

Retail¥46.6 billion(34.4%)

Leisure and service¥1.6 billion (12.4%)

Transportation¥45.1 billion(33.3%)

Retail¥1.3 billion(10.3%)

Real estate¥28.0 billion(20.7%)

Real estate¥5.1 billion(39.2%)

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

6

Transportation¥5 billion(38.1%)

Results of Transportation(Millions of yen)

1H FY2014
Results

1H FY2015
Results

ChangeChange (%)

Operatingrevenue

45,05645,10851

Operatingincome

4,613

5,046

432

Summary

0.1%

RailwayBus
Elimination

36,53013,280-4,703(+247)(+108)(-304)

9.4%

Railway
Bus

4,672
342

(+440)(-16)<< Operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)
1H
FY2014
Results

1H
FY2015Results

Non-commuter
passes

71,694

Commuter passes
Total

Passenger transportation revenue(Millions of yen)

ChangeChange(%)

1H
FY2014
Results

1H
FY2015Results

ChangeChange(%)

71,556

-138

-0.2%

16,608

16,62516

0.1%

69,13970,159

1,020

1.5%

7,984

8,053

69

0.9%

140,833

141,715882

0.6%

24,593

24,678

85

0.3%

7

Results of Real Estate(Millions of yen)
1H FY2014
Results

1H FY2015
Results

ChangeChange (%)

Summary

Operating revenue

31,81428,027-3,787-11.9%

Real estate
Construction
Elimination

Operating income

6,434

5,193

-1,241-19.3%

Real estate
Construction

21,887
7,975-1,836(-2,637)(-1,141)
(-8)

5,377
-109

(-1,103)(-49)<<Results by business>>(Millions of yen)
Operating revenue

Operating income

1H FY2014
Results

1H FY2015
Results

ChangeChange(%)

1H FY2014
Results

1H FY2015
Results

ChangeChange(%)

Real estate sales

15,374

12,093-3,280-21.3%

2,282

812-1,469-64.4%

Real estate leasing service

8,020

8,672

651

8.1%

4,136

4,508

372

9.0%

Real estate management

1,129

1,121

-7

-0.7%

62

56

-5

-9.1%

Total

24,524

21,887-2,637-10.8%

6,480

5,377

-1,103-17.0%<<Main condominium buildings for sale>>
Name
Fine Quarter City
Fine Flats Kyoto Yamashina
Fine Flats Nishinomiya

Number of
Location(Millions of yen)units sold
3,324
115 Kita-ku, Osaka-shi
1,816
48 Yamashina-ku, Kyoto-shi
1,728
45 Nishinomiya-shi, Hyogo
Sales amount8

Results of Retail(Millions of yen)
1H FY2014
Results

Operatingrevenue
Operatingincome1H FY2015
Results

45,777

Change46,693

1,128

1,372

Change (%)

916

243

Summary

2.0%

Department store
Store
Shopping mall management
Restaurant

21.6%

Department store
Store
Shopping mall management
Restaurant

24,756 (-1,101)
13,238(+544)
6,978 (+1,634)
3,141(-215)
3
493
787
78

(-105)(+91)(+276)(-19)<< Major New Stores>>
Name
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 StoreUNIQLO, Kintetsu Uehommachi Station StoreSWEETS BOX, ekimo Namba StoreSWEETS BOX, SEIBU SHINJUKU PePe Store

Opening dateJuly 29, 2014
April 4, 2014
April 1, 2014
March 12, 2014
March 12, 2014
March 12, 2014
March 12, 2014
March 12, 2014
February 25, 2014
October 31, 2013
September 26, 2013

Location
Adachi-ku, Tokyo
Kita-ku, Osaka-shi
Izumisano-shi, Osaka
Hirakata-shi, Osaka
Hirakata-shi, Osaka
Hirakata-shi, Osaka
Hirakata-shi, Osaka
Hirakata-shi, Osaka
Tennoji-ku, Osaka-shi
Chuo-ku, Osaka-shi
Shinjuku-ku, Tokyo

Name
Juicer Bar, Keisei-Tsudanuma Store
An3, Gotenyama Store
Hakodate Ichiba, Gojo Store
Ashikari, Kyoto Yodobashi Store
Hakodate Ichiba, Katsura Store

Closing date
September 23, 2014
August 26, 2014
February 28, 2014
February 11, 2014
July 28, 2013

FREST, Komagawa Store

June 30, 2013

Location
Narashino-shi, Chiba
Hirakata-shi, Osaka
Ukyo-ku, Kyoto-shi
Shimogyo-ku, Kyoto-shi
Nishikyo-ku, Kyoto-shi
Higashisumiyoshi-ku,
Osaka-shi<< Sales of Department Store >>Store<< Main Stores Closed>>

9(Millions of yen)
Sales
Changeamount<< Sales of Store >>Division(Millions of yen)
Sales
ChangeamountMoriguchiStore10,552

-821

Store

5,751

223

Hirakata Store

3,233

-131

Convenience
store

2,766

-80

Kyobashi
Store

3,367

-146

Kiosk

286

-51

Kuzuha Store

4,874

68

Stationbusiness

3,693

308

Suminodo
Store

2,448

-56

Miscellaneous
revenue

740

145

Miscellaneous
revenue

279

-14

Total

13,238544

Total

24,756-1,101

Results of Leisure and Service(Millions of yen)
1H FY2014
Results

1H FY2015
Results

ChangeChange (%)

Summary

Operatingrevenue

14,035

14,865

830

5.9%

Hotel
Leisure12,644 (+1,082)
2,309(-240)

Operatingincome

853

1,648

794

93.1%

Hotel
Leisure1,538
222<< 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

1H FY2014
Results
87.7%
93.0%
99.3%
82.9%
88.4%
95.8%
95.8%
81.6%
83.0%
89.7%
95.6%
89.1%
-

1H FY2015
Results
96.1%
94.2%
96.5%
85.1%
87.3%
96.3%
96.1%
84.2%
97.2%
96.0%
98.3%
91.8%
-

Change8.4 pt1.2 pt-2.8 pt
2.2 pt-1.1 pt
0.5 pt0.3 pt2.6 pt14.2 pt
6.3 pt2.7 pt2.7 pt-10

Number of
rooms
214
317
286
330
641
178
200
171
162
303
122
220
3,144

(+841)(-45)

Non-consolidated Statements of Income(Millions of yen)
1H
FY2014
Results

1H
FY2015Results

ChangeOperating revenue

42,97840,883-2,095-4.9%

Railway

26,21726,28365

0.3%

Subsidiary business

16,76014,599-2,161-12.9%

Real estate sales

8,012

5,048

-2,964

Real estate leasing service
LeisureOperating income

7,339
1,408
9,432

7,994
1,557
9,051

Railway

3,851

Subsidiary business
Real estate sales
Real estate leasing service
Leisure

5,581
1,780
3,716
83

Ordinary income

Net income

8,798

6,417

Change
(%)

April
2014
Estimate

Summary

39,300
Number of passengers
Passenger transportation revenue

+0.6%
+0.3%

-37.0%

Sales of condominium buildings(Fine City Osaka-jo Koen
(Fine Quarter City

-2,970-5,407)+2,659)

654
148
-381

8.9%
10.5%
-4.0%

Number of visitors to Hirakata Park

+4.8%

4,188

337

8.8%

4,862
589
4,075
197

-718
-1,191358
114-12.9%-66.9%
9.7%
137.4%

9,111

6,362

313

-54

11

7,700

3.6%

Non-operating income+525(Dividends income+357)(Reversal of allowance for doubtful accounts +215)
Non-operating expenses-169(Interest expenses
-151)

7,400

-0.9%

Extraordinary income(Gain on sales of investments securities(Contribution for construction
Extraordinary loss
(Reduction entry of land contribution for
construction

5,500

-570
-616)
+41)
+35
+40)

FY2015 Forecasts

Forecast of Consolidated Business Results(Millions of yen)

FY2014
Results

FY2015
Forecast

ChangeChange(%)

Main factors of changes

April 2014
Estimate

Operating revenue

289,203

286,400-2,803-1.0%

Transportation -961, Real estate -5,479,
Retail +1,672, Leisure and service +1,276,
Others +1,662

Operating income

25,08524,300

-785

-3.1%

Transportation -628, Real estate -1,971,
Retail +554, Leisure and service +1,246

22,100Ordinary income

21,457

21,100

-357

-1.7%

Non-operating income +222,
Non-operating expenses -206

18,600Net income

14,42015,000579

4.0%Extraordinary income +18,649,
Extraordinary loss +18,089

12,800Capital expenditure

31,17924,900-6,279-20.1%

24,700Depreciation

16,603

17,200596

3.6%

17,300EBITDA

41,68841,500

-188

-0.5%

[Breakdown of capital expenditure]
Transportation
14,700 (+4,109)
Real estate
7,300 ( -9,984)
Retail1,000 ( -891)
Leisure and service
1,600 (
-22)
Corporate etc.
300 ( +509)

Interest-bearing debt

321,044318,300-2,744-0.9%

317,000

Interest-bearing debt /EBITDA multiple(Times)<<Main capital expenditure for FY2015>>(Transportation) Investment on our railway 9,460(Real estate) Investment on our real estate 7,200

7.70

7.67

-0.03

-

13

285,200

39,4008.0

Forecast of Consolidated Business Results(Segment Information)(Millions of yen)

Operating revenue

FY2014
Results

FY2015
Forecast

ChangeChange(%)

289,203

286,400-2,803-1.0%

Transportation

89,661

88,700

-961

-1.1%

Real estate

88,17982,700-5,479-6.2%

Retail

95,427

97,100

1,672

1.8%

Leisure and service
OthersElimination

27,423
1,637-13,125

28,7003,300-14,100

1,276
1,662
-974

4.7%
101.6%


Operating income
Transportation

25,08524,300

-785

-3.1%

6,928

6,300

-628

-9.1%

Real estate

14,571

12,600-1,971-13.5%

Retail

2,445

3,000

554

22.7%

Leisure and service
OthersElimination

1,153
-0
-13

2,400
0
0

1,246
0
13

108.1%－－

14

April 2014
Estimate

Main factors of changes

285,200
RailwayBus
Elimination
Real estate sales
Construction
Real estate leasing service
Elimination
Shopping mall management
Store
Department store
Hotel
LeisureRailway
Bus
Real estate sales
Real estate leasing service
Construction
Shopping mall management
Store
Department store
Hotel
Leisure+1,168-45-2,084-4,149-3,464+627+1,067+3,117+1,008-2,083+1,604
-323

-397
-221
-2,543
+807
-347
+512
+179
-139
+1,236+36

88,10082,10099,70028,0001,700-14,400
22,1005,400
12,100
2,800
1,800
0
0

Forecast of Non-Consolidated Business Results(Millions of yen)
FY2014
Results

Operating revenue

FY2015
Forecast

ChangeChange (%)

85,99686,300303

0.4%

Railway operation

52,72152,300

-421

-0.8%

Subsidiary business

33,27534,000724

2.2%

15,00015,200199

1.3%

Railway operation

6,525

6,170

-355

-5.4%

Subsidiary business

8,475

9,030

554

6.5%

Ordinary income

12,83813,700861

Net income

9,082

9,800

717

Operating income

Main factors of changes

Number of passengers
Passenger transportation revenue

-0.7％
-0.6％

6.7%

Non-operating income
Non-operating expenses

+399
-263

7.9%

Extraordinary income
Extraordinary loss

+18,625+18,525<< Forecast of operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)
FY2014
Results

FY2015
Forecast

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

FY2014
Results

FY2015
Forecast

ChangeChange(%)

Non-commuter passes

144,758

143,721-1,037-0.7%

33,56533,367

-198

-0.6%

Commuter passes

136,060

135,250

-810

-0.6%

15,85915,753

-106

-0.7%

280,819

278,971-1,848-0.7%

49,424

49,120

-304

-0.6%

Total

15

TOPICS

Progress of FY2015 Initiatives

Keihan Group’s Medium-term Management Plan
(FY2013-2015)
Basic Policy

Building the foundations for a strong Keihan for the next 100 years
Corporate Strategy
Revitalize areas along the
Keihan Railway lines

Strengthen the operating structure throughextensive efficiency gains◆ Operating divisions◆ Push ahead with site development

Create an efficient operating system through a radical reviewof the business structure- Overhaul business approaches- Restructure and integrate businesses in the Group- Exit unprofitable businesses or businesses with limited
potential- Push ahead with the creation of highly livable areas bydeveloping strategic sites such as the KUZUHA MALL
second-stage development plan in order to ensure areas
along our lines continue to be chosen by the public wellinto the future◆ Implement our Kyoto strategy◆ Administrative divisions- Establish a position as the leading company in Kyoto- Customers always associate Keihan with Kyoto

Achieve extensive efficiency gains through cost control- Create a lean head office at Keihan Electric Railway by
reducing the size of administrative divisions- Reduce costs in administrative divisions at Group
companies◆ Promote new businesses to develop areas alongrail lines- Promote lifecycle support businesses

17Revitalize areas along the Keihan Railway lines
KUZUHA MALL second-stage development
Current situation after the renewal
Increase in the number of visitors by approximately 20% since the renewal andthe increase in floor space
Considerable increase in the number of visitors coming to the mall by railway
Increase in the number of passengers getting on and off at Kuzuha Station byapproximately 15% from the previous year

Promote new businesses to develop the areas along
our railway lines
Lifecycle support businesses
Establish an environment that is supportive of child-rearing
and also friendly to senior citizens
Attract a culture center and a childcare facility to Kuzuha Station<Asahi Culture Center, Asahi JTB/Cultural Exchange School, Kuzuha Class>Opened: October 1, 2014 (grand opening)<Ouchi de Hoiku [childcare] Stela, Keihan Kuzuha School>(childcare service by monthly contract/temporary childcare service)
Opened: October 1, 2014 (pre-opening)
April 1, 2015 (grand opening)<Classy Family Concierge Kansai, Kuzuha Office> (homemaker service)
Opened: October 1, 2014 (grand opening)
Push ahead with the creation of highly livable areas by developing strategicsites along our railway lines

18

Asahi Culture Center

Ouchi de Hoiku Stela

Revitalize areas along the Keihan Railway lines
Implement our Kyoto strategy(geiko)Kyoto Regular Tour Bus
Introduce buses with geiko, maiko, and tayu designs
Express three images of Kyoto – elegance, comfort, and allure –(maiko)to support efforts to disseminate the culture of Kyoto in the styleof kagai (geisha district), which has been designated as
one of Kyoto City’s intangible cultural assets
Use these buses for our popular year-round one-day standard Kyoto(tayu)
Regular Tour Bus courses, as well as for our premium series
incorporating special visits to temples/shrines in Kyoto and special
experiences
New vehicle designs

Kyoto promotion poster
Run an advertising poster campaign with theslogan “In Kyoto, on Keihan.”Run an image advertisement campaign mainly outside areas along
our railway lines, as part of our efforts to build up our image as
being synonymous with Kyoto
Attract many more sightseers to Kyoto

19Revitalize areas along the Keihan Railway lines
Promote new businesses to develop areas along our railway lines◆ Enter the organic food market and present a new lifestyle
Acquire Biomarket Co., Ltd.
Home delivery business

Wholesale business

Operate the home delivery service of Bio Marche,and provide vegetables, all of which are JASorganic vegetables, as well as 500 varieties oforganic processed food and other products
Deliver these products to approximately 8,000
members in Tokyo, Saitama, Nagoya, Osaka,
Kyoto, Hyogo, Hiroshima, Fukuoka and otherprefectures, in cooperation with group companies

Sell organic agricultural produce, mainly
vegetables, as well as organic processedfood under the “Bio Marche” brand, mainly
to department stores, food service operators,
etc.
Sell organic agricultural produce to foodmakers, and promote joint development ofprivate brand products(t)Changes in quantities of graded organic agricultural produce in Japan

70,00060,00050,00040,00030,00020,00010,0000

Other
Green tea
(unprocessed tea)
Fruit
Rice
Vegetables

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: Website of the Ministry ofAgriculture Forestry and Fisheries

Provide high-quality organic products on a stable basis with many more customers, notonly in areas along the Keihan lines but also in other parts of Japan, and expand sales
Strive to contribute to improving the environment, by developing the organic agriculturalbusiness and helping realize a recycling-oriented society, both of which are policies
currently promoted by the national government

20

Organic JAS logo

Revitalize areas along the Keihan Railway lines
Promote new businesses to develop areas along our railway lines◆ Promote lifecycle support businesses
Open Rose Life Kyoto<Facility outline>
Location: 1-23 Takada-cho, Mibu-higashi, Nakagyoku, Kyoto-shi
Business: Residential facility with nursing careservices for senior citizens (assisted living
facility for senior citizens for a fee)
* Facility providing services covered by
Kyoto City’s nursing care insurance(General-type specified facility)
Facility outline: 1st floor – shared zone
2nd to 6th floors – residential zone
No. of residential rooms with nursing
care services – 90
(capacity – 90 persons)
Living, dining, bathroom, etc.
* Residential area
2nd to 5th floors: approx. 20 m2 perroom
6th floor: approx. 42 m2 per room
Opened: November 1, 2014
Keihan Group’s third assisted living facility for seniorcitizens for a fee
Keihan Group’s first senior-citizen support project
promoted in Kyoto City
21

Business Strategy – Transportation –Ensure safety and peace of mind
Renewal of the 6000 series
Implement barrier-free measures, introduce a beautiful design, andperform energy-saving measures• Implement barrier-free measures, such as securing space for wheelchair users,
as well as installing in-vehicle liquid-crystal information indicators, and door
chimes.
• Renew the interior design based on that of our latest vehicle
Inside a 6000 series vehicle after the renewal• Use LEDs for in-vehicle lighting, front headlights, and train direction indicators

Develop services in accordance with customers’ needs
Introduce a special autumn timetable
Increase the number of our non-stop Raku Raku Keihan express
services between Kyobashi and Shichijo•Reduce the required time between Kyobashi and Shichijo from approx. 40
minutes to 35 minutes•Operate some services as connections to Hieizan, Kurama/Kibune, and Ohara

Launch a new route of the Direct Express Choku Q
Kyoto services, and increase the number of express services•Launch a new route connecting the USJ area and the Hirakata area
•Extend the route to Kyoto City, with an expectation for growth in demand for
Kyoto sightseeing by users of accommodation facilities around USJ, such as
Hotel Keihan Universal Tower

22

Raku Raku Keihan express

Choku Q Kyoto bus

Business Strategy – Real Estate –Continue to focus on short-term
turnover businesses
Sales of major properties<Oji-Asukayama THE FIRST TOWER& RESIDENCE>
Location:
1-1-3 Horifune, Kita-ku, Tokyo
Completed:
January 2016 (tower building), October 2014
(residential building)Tower building:
1 underground floor and 29 above-ground floors,
230 apartments
Residential building: 1 underground floor and 7 above-ground floors,
55 apartments<THE RESIDENCE HIGASHIMIKUNI>
Location: 1-1-6 & 7 Juhachijo, Yodogawa-ku, Osaka-shi
Completed: February 2016
1 underground floor and 15 above-ground floors, 304 apartments

THE RESIDENCE HIGASHIMIKUNIInitiatives to enhance profitability
Strategically replace portfolio assets and invest in real estate funds
Construct the Keihan Yodo Logistics Yard
Construct a logistics facility as part of our efforts to enhance the profitability of our real estate leasing service
Total floor area: approx. 42,700 m2
Scheduled to be opened in the spring of 2016

Expand the condominium management and property management businesses
Breakdown of properties under our management
Office buildings 21
Leasing condominiums 10 (305 apartments)
Owner-occupied condominiums 140 (9,461 apartments) (As of November 12, 2014)23

Business Strategy – Retail –Initiatives to enhance profitability
Utilize our know-how and increase the number of property
management contracts
Keihan The Store Co., Ltd. selected as the company expected to operate andmanage the shopping area inside Shin-Osaka Station of the Midosuji Line of
the Osaka Municipal Transportation Bureau

Newly opened stores<SWEETS BOX>

Closed stores• An3 Gotenyama Store (August 26)• Juicer Bar, Keisei-Tsudanuma Store• JR Musashi-Urawa Store (temporary name)(September 23)(scheduled to open in December)• Juicer Bar, Tokyu Minami-Machida<UNIQLO>Store (October 19), and some other• Kansai International Airport’s main building in thestoresdeparture area for international flights on the 3rd
floor of the 1st terminal (scheduled to open in
Conceptual image of the shopping
March 2015)
area of Shin-Osaka Station<Juicer Bar>
• Tobu Kita-senju Store (July 29)

Expand property management business
Increase the number of property management contracts
Breakdown of our property management contracts: commercial facilities – 18 contracts (as of November 1, 2014)
Strive to obtain many more large-scale contracts and establish a stable fee business24

Business Strategy – Leisure and Service –Initiatives to target tourism-related demand
Attract USJ visitors to our facilities
USJ attracting 1.46 million visitors in October, continuing to break its single-month visitor record for threestraight months
USJ expected to mark a record high in terms of the number of annual visitors, mainly due to the continued
effects of the opening of the new Harry Potter area
Keihan striving to maximize the revenues of our two hotels designated as USJ official hotels, which are someof the largest in the area around USJ, with approximately 1,000 rooms in total(Unit: tens of
thousands of people)

Hotel Keihan Universal Tower

Hotel Keihan Universal City

(FY)
Source: Based on a wide variety of media reports

Create sightseeing opportunities by using theattractiveness of Lake Biwa
Designated as the management operator of the Yanagasaki Lakeside Park, amunicipal park of Otsu City, in March 2014
Promote measures to create sightseeing opportunities by enhancing theattractiveness of cruises on Lake Biwa, specifically, enhancing theattractiveness of regular cruises involving the Yanagasaki Lakeside Park Port,and developing new Lake Biwa cruise services involving Biwako Otsukan, aheritage of industrial modernization

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Biwako Otsukan

Transitioning to the next medium-term
management plan (FY2016-2018)
In the next medium-term management plan, in order to develop competition with areas along other railway lines
amidst the decrease in population, we will strive to re-brand areas along the Keihan Railway lines, and actively
create sightseeing opportunities by utilizing the potential of sightseeing spots in these areas, which are some of thebest in the world and feature many attractive settings.
Ensure areas along
the Keihan Railway
lines continue to bechosen by the public
well into the future

Medium-term
management plan
(FY2013-2015)

Next medium-term
management plan
(FY2016-2018)
Further revitalize areas along
the Keihan Railway lines

Strengthen the operating structure
through extensive efficiency gains

Implement our Kyoto strategy
and create sightseeing
opportunities

Revitalize areas along
the Keihan Railway lines

Promote new businesses

Building the foundations fora strong Keihan for the next
100 years

Priority themes for FY 2016 and beyond
The themes include the following:
Push ahead with site development
Promote Kyoto-related businesses
Develop new businesses with the focus on BIO-Style

Promote development into a“new” Keihan Group in
response to our growth

Details of the next medium-term management plan are currently being formulated (business portfolio, initiatives, quantitative
targets, etc.); we plan to announce the full plan before the end of FY2015.

26

Efforts to be promoted under the next mediumterm management plan (FY2016-2018)
Develop new businesses with the focus on BIO-Style
Create BIO-Style, a lifestyle to be proposed by the Keihan Group
Promote the BIO-Style Kyoto/Shijo-Kawaramachi Project, a construction plan for acomplex in Shijo-Kawaramachi, Kyoto, to disseminate the “BIO-Style” lifestyle
Propose the “BIO-Style” lifestyle based on various themes, such as ahealthy and high-quality lifestyle, diverse forms of harmony with thenatural environment, and environmental preservation, and develop“BIO-Style” as a new business axis for the Keihan GroupOperate a flagship facility consisting of a hotel, a relaxation service
store, an organic product store, and other functions, in ShijoKawaramachi, Kyoto<Facility outline><Concept>
BIO-Style of Kyoto
Space where you can feel the four seasons with your five senses andappreciate mental and physical comforts
Facility components: Hotel, relaxation service store, an organic product store & café,
and a space to disseminate the “BIO-Style” lifestyle
Location:
Inari-cho, Shijo-kudaru, Kawaramachi-dori, Shimogyo-ku,
Kyoto-shi
Structure outline:
Ground area: approx. 3,800 m2
Total floor area: approx. 24,500 m2 (1 underground floor andnine above-ground floors)
Opens:FY2018 (scheduled)

27

Conceptual image of the completed structure(external appearance)