FY2020(Fiscal year ended March 31, 2020)

Financial Results Presentation
May 13, 2020
Keihan Holdings Co., Ltd.
(Tokyo Stock Exchange 1st/ Securities Code: 9045 http://www.keihan-holdings.co.jp/)

Table of Contents

 Summary of Consolidated Financial Results
Impact of and Policies on the COVID-19 Pandemic…2

 Progress Status of Medium-Term Management Plan
“Create Living, Community, and Excitement”…6 Overview of FY2020 Financial Results… 19 FY2021 Forecasts… 32◆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.
Actual results may differ due to various factors that may arise in the future.

1

Summary of Consolidated Financial Results
Impact of and Policies on the COVID-19 Pandemic2Summary of Consolidated Financial Results(Millions of yen)

FY2020 results

FY2020results

FY2019results

Operating revenue

317,103

326,159

Operating income

31,12333,715

Ordinary income

29,88632,108

Profit attributable toowners of parent

20,121

21,480Change-9,056(-2.8%)-2,592(-7.7%)-2,222(-6.9%)-1,359(-6.3%)FY2020 fullyear forecasts
325,000
34,30033,10023,000Change-7,896(-2.4%)-3,176(-9.3%)-3,213(-9.7%)-2,878(-12.5%)

Postponement of the announcement of consolidated forecasts for FY2021
Consolidated forecasts for FY2021 have not yet been determinedsince it is not possible to reasonably assess the impact of the COVID-19 pandemic
at this stage.
The forecasts will be announced as soon as the company is ready to disclose them.

3

Impact of the COVID-19 Pandemic《Financial impact of the COVID-19 Pandemic (FY2020)》(100 millions of yen)

Operating revenue

Operating income

-20

-19

-0

-0

Retail distribution

-14

-5

Leisure and service

-33

-22

-1

-0

-70

-49

Transportation
Real estate

OthersConsolidated《Status of major businesses affected (December 2019-March 2020)》(%)

Keihan Electric Railway:
No. of passengers (YoY)(%)

Keihan Department Stores:
Operating revenue (YoY)(%)

Hotel occupancy rates

100.0

10.0

10.0

0.0

0.0

60.0

-10.0

40.0

-20.0

20.0

80.0

-10.0
-20.0
-30.0
Dec.

Jan.

Feb.

Mar.

Dec.

Jan.

Feb.

Mar.

Dec.

Jan.

Feb.

Mar.

Hotel Keihan
Keihan Hotels & Resorts

4

Policies on the COVID-19 Pandemic
Preventing the
spread of
COVID-19 infection

In consideration of the health and safety of customers andemployees, the company will implement safety measures such as
disinfection, telecommuting, business suspension and shorter
business hours.

Minimizing theimpact of
the COVID-19
pandemic

The company will take every measure including a drastic review ofinvestments and costs, flexibly follow the government's economic
policies, and start preparations for capturing special demand thatwill arise after the pandemic has ended.

Executing main
strategies

The company will implement new initiatives to achieve
profit growth for the next generation, which is described in the longterm management strategy, and respond flexibly to future changes
in circumstances.

Improving financial
stability

Financing through CP issuance has been and will be conducted.
In addition, the company is planning flexible financing by utilizing
syndicated loans, seeking credit line increase from financial
institutions, and issuing corporate bonds.
5

Progress Status of Keihan Group’s MediumTerm Management Plan
“Create Living, Community, and Excitement”

6Overall structure of the long-term
strategic concept
Keihan Group’s long-term
strategic concept

Management vision“Be the beautiful Keihan areas
and the global Keihan group”

Long-term management strategy◆Main strategies
Redevelop Keihan areas

Medium-term management plan

Redevelop
Keihanareas
Co-create tourism
opportunity
Co-create
tourism
Create relatable
contents
opportunity“Create Living, Community, andExcitement”

2018

2019

Major
events/projects

2020

2021

2022

2023

2024

2025

G20 Osaka Summit
Rugby World Cup
Opening of USJ’s new area “SUPER NINTENDO WORLD™”
Tokyo 2020 Olympic Games
World Masters Games Kansai

Transportation
network*Includes planned projects

Full opening of the Shin-Meishin Expressway

2026

Full opening of IR (Integrated
Resort) in Yumeshima,Osaka
Expo 2025 Osaka, Kansai

Opening of the Naniwasuji Line (2031)

Extension of the Osaka Metro Chuo Line
Extension of the maglev “Chuo Shinkansen” to Osaka (2037)

7

Overview of the long-term
management strategy
The main strategies carried out by the Keihan Group toward FY2027
Theme

Basic policy

Priority measures

Redevelop Keihan
areas

Make the areas along the Keihan Railway
lines beautiful through urban revitalization
with railway stations at the core

Regain the glory of Osaka’s east to
west axis and carry out
community building starting fromrailway stations

Co-create tourism
opportunity

Create tourism opportunities with thecommunity and promote global exchange

Strengthen tourism and inboundbusiness
mainly in Kyoto

Create relatable
contents

Create products, services, andbusinesses that customers can relate to

BIOSTYLE- Aim for Keihan as First Choice -Preparations for the management vision
Create area portfolios

Promote innovations with an eye to the next generation

 Focus on business development in Kyoto and contribute to the  Create services and improve productivity by utilizing ICT
re-creation of Kyoto
technologies
 Expand business to outside the areas along the Keihan
 Promote new businesses
Railway lines (domestic and overseas growth markets)

8Redevelop
Keihan areas

Growth pole development in the areas
along the Keihan Railway lines

Hirakatashi
Community building starting from railway stations
October 2019 The urban redevelopment plan for the redevelopment area including the land owned by
Keihan Holdings was formulated.
January 2020 The area around the station was designated as an “urgent urban renewal area.”
March 2020
Establishment of the “Hirakatashi Station Area Urban Redevelopment Association” wasapproved.
FY2024
Construction in the area including the company’s land (section 3) to be completed.
FY2026
Project to be completed.

Keihan Main Line
Amano River

Section 3
Katano Line

Hirakatashi Sta.
Hirakata T-SITE

Redevelopment
area

Partial revision of a document released by the company

KyobashiCommunity building for the entrance of the “Higashi" area on Osaka’s east to west axis
August 2017 The area around Kyobashi Station was included in an existing “urgent urban renewal area.”
FY2026
Project to be partially completed.
FY2027
Project to be fully completed.

Keihan Kyobashi
Station Building(current status)

Yodoyabashi
Keihan Midosuji Building and Nittochi Yodoyabashi Building will be jointly reconstructed after integration of the premises.
2020
Demolition of existing building starts.
• Total floor area: Approx. 73,600 m²
2022
Construction of new building starts.
• Size: 28 floors above ground, 4 floors below ground
FY2026
Project to be completed.
• Height: Approx. 150 m

New building development(image)Nakanoshima
The company participates in the Nakanoshima 4-chome International Hub for Medical Innovation Project.
This is a joint project with Nippon Life Insurance Company• Total floor area: Approx. 58,000 m²
and Kanden Realty & Development.
• Size: 17 floors above ground2023
Project to be completed.

Nakanoshima Multi-linkS(image)9

Co-create
tourism opportunity

Strengthen tourism business mainly
in Kyoto

Strengthening sales and marketing structure

Tourism MaaS demonstration experiment

We have established an optimal sales structure to promote the “cocreate tourism opportunity” policy of the entire Keihan Group, involving
the leisure and service segment such as the hotel business. Thus we
aim to capture inbound and domestic demand even further.

By examining how MaaS can contribute to improving theconvenience of intraregional transportation, attracting
tourists and encouraging them to tour around the area, we
aim to promote measures to revitalize the Mt. Hiei and Lake
Biwa area.
We plan to continue similar experiments.

Sales promotion center

Opening date

Area

East Japan Sales Office

April 2018

Shizuoka andeastward, overseas

West Japan Sales Office

March 2020

Aichi and westward• A council involving Otsu City, Keihan Holdings, Keihan Bus
and Nihon Unisys conducted the project.
• Experiment period: Nov. 1 to Dec.1, 2019• No. of downloads: 2,808• No. of special tickets sold: 1,398• Ticket purchase rate: Approx. 50%

Enhancing transportation network and convenienceUpgrade of Keifuku Electric Railroad Kitano-Hakubaicho Station
Kitano-Hakubaicho Station of Keifuku Electric Railroad was upgraded in March 2020.
By unifying the station and the bus stop, we have made a clear access route between the
Arashiyama area and the Kinkaku-ji Temple area
and improved convenience.

Upgrade of Eizan Railway Kibuneguchi Station
In March 2020, the platform was widened and barrier-free facilities wereintroduced at Kibuneguchi Station,
the gateway to the Kibune area known as a retreat for Kyoto residents.
A bus stop for the Kyoto Bus was established to improve convenience fortransit passengers.

Kifune-jinja Shrine

10Create relatable
contents

BIOSTYLE- Aim for Keihan as First Choice -Promotion of BIOSTYLE

BIOSTYLE PROJECT Guidelines• BIOSTYLE is a new lifestyle
proposed by the Keihan Group, aimed at achieving a healthy,
beautiful, and high-quality life andcontributing to a recycling-oriented society.
• We established guidelines
so that each group company can actively work on
BIOSTYLE as Keihan’s strategy for the SDGs.
Thus we aim to contribute to the achievement of the SDGs andrealize our management vision.

Opening of the GOOD NATURE STATIONGOOD for Health
GOOD for Minds
GOOD for Locals
GOOD for Social
GOOD for Earth
The BIOSTYLE Promotion Office of the company examines theabove criteria to promote the project implementation at each groupcompany.

We will strive to enhance its
recognition by boosting cosmetics andfood sales through e-commerce(release of original items, fooddelivery), and organizing events along
the railway lines and in wider areas.

Opened on December 9, 2019 in ShijoKawaramachi, Kyoto City
as a facility that embodies BIOSTYLE with food,beauty and accommodation.

An item from the original cosmetic
brand "NEMOHAMO" won the
Sustainable Cosmetic Award.
11

Initiatives in the transportation businessTransition of the passenger transportation
revenue and inbound revenue

Enhancing the Premium Car service(JPY100 million)(Index)130

Inbound revenue (Keihan Electric Railway)
Kiehan Electric Railway
Keifuku Electric Railroad
Eizan Railway

120

110

 3000 series Premium Cars to be introduced

20• Premium Cars will be introduced to all 3000 series trains.

15• Along with the 8000 series Premium Cars in operation,
we can, as a general rule, offer the Premium Car service
for all limited express trains operating during daytime.

10

100

5

90

0

FY2015FY2016FY2017FY2018FY2019FY2020• Service launch
January 2021 (planned)• Cashless ticket machines
will be installedon the platforms.

8000 series

3000 series*FY2015 = 100

Response to the COVID-19 pandemic

 Current status of 8000 series Premium Cars

• We have stepped up measures for ensuring the safety andsecurity of customers andemployees.

• Sales from 8000 series Premium Cars have been strong
since their introduction in August 2017.
(Index)• The number of railway and bus
services has been reducedon some routes.

220• We have implemented furlough andother measures to improve theefficiency of work.

100

Transition of charged train fares

180
140
Premium Car
All charged train services (Total)

60
FY2018Disinfection in a train car*FY2018 = 100

FY2019FY202012Initiatives in the real estate business
Main condominiums to be sold in FY2021 and thereafter
Name of property, location

No. ofhousing units

Scheduled delivery in FY2021
FINE City Shin-Koshigaya

Koshigaya City

179

GRAN ARENA RESIDENCE

Yamato City

604*

THE HIGH HORIE

Osaka City141

THE FINE TOWER OTEMAE

Osaka City

241

Chiba Inage-ku Project

Chiba City

103

Ishigaki Arakawa Project

Ishigaki City

84

Amagasaki Project

Amagasaki City

456*

Nagoya Naka-ku Project

Nagoya City

163*

Sapporo Nishi-ku Nijuyonken Project

Sapporo City

137*

Osaka Minato-ku Project

Osaka City

199*

Diverse real estate development
 Detached housing businessin urban areas
Zero Corporation, known for its“100-year housing,” promotes
community development in linewith the ever-changing forms offamilies by developing two-family
houses and housing complextype “unit-ownership” houses.

Scheduled delivery in FY2022

Scheduled delivery in FY2023*Joint project
The number of housing units is the total number of housing units.
The number of housing units and the timing of posting of the above properties may change.

Suggestion for barrier-free facilities

Lots for sale
(Takatsuki City, Osaka) Office acquisition
Toranomon Hills Business Tower
started operation• Completion date: January 15, 2020
• Location: Minato-ku, Tokyo• Total floor area
Approximately 172,925 m2(*Partially owned)

Expand business in and outside areas
along the Keihan Railway lines
as the driver of the group's growth13

Initiatives in the retail distribution businessResponse to the COVID-19 pandemic

Expansion of the Ekinaka (in-station) business Role as basic infrastructure for daily life

 “UNIQLO Hankyu Osaka-umeda Station Store” opens

We have continued operation of food supermarkets aswell as grocery stores incommercial facilities.
Measures including shutdown andshorter business hours in shops
have been taken flexibly.
(%)

Based on a business alliance with Fast Retailing Co., Ltd.,
we operate UNIQLO stores in or near stationsof Keihan and other railway lines.
••

Sales performance by supermarkets

120
110

Opening date
Late June 2020 (planned)
Location
Hankyu Railway Osaka-umeda
StationOutside ticket gates on the 3rdfloor

 SWEETS BOX

100

All supermarkets(Total)
Matsui Yamate Shop

90

Jan.

Feb.

• Biomarket delivery service
We aim to attract new customers
by offering delivery service
that is seeing soaring demand.

Renovation conductedin the previous fiscal year

Mar.

The shop offers sweets from different places for a limited timeonly.
A new shop was opened in Odakyu Railway Yamato Station in
November.
Fourteen shops are operating in the Kanto area.

 Juicer Bar
The juice stand serves freshly squeezed juice.
A new shop was opened in Odakyu Railway Hon-Atsugi
Station in March.
Eight shops are operating in the Kanto area.
14

Initiatives of the Leisure and Service business
Number of guest rooms in our hotels
Opening in the Mediumterm Management Plan
period (2018 or after)

Response to the COVID-19 pandemic
No. ofguest
rooms

No. of guest
rooms in the
area
200
201

Hokkaido Hotel Keihan Sapporo
MiyagiHotel Keihan Sendai(Aug. 2020)

200
201

Tokyo

Dec. 2018

297

Aichi
Shiga
Kyoto

Osaka

Hotel Keihan Tsukiji Ginza Grande
Hotel Keihan Asakusa
Hotel Keihan Tokyo Yotsuya
Hotel Keihan Nagoya
Biwako Hotel
Kyoto Tower Hotel
Kyoto Tower Hotel Annex
Kyoto Century Hotel
THE THOUSAND KYOTO
CAFETEL KYOTO SANJO for Ladies
Hotel Keihan Kyoto Grande
Hotel Keihan Kyoto Hachijoguchi
L’Hôtel de Hiei
GOOD NATURE HOTEL KYOTO
Hotel Keihan Kyoto Ekiminami

Dec. 2018
Apr. 2020

Jan. 2019
Jul. 2018
Dec. 2018
Dec. 2019(Jun. 2020)

178
121
259
175
162
126
218
222
21
320
234
29
141
200

Hotel Keihan Kyobashi Grande214

Hotel Keihan Universal City
Hotel Keihan Universal Tower
Hotel Keihan Tenmabashi
Hotel Keihan Yodoyabashi
Hotel Keihan Shin-Tenmabashi

330
641
315
210
300

(2021 spring)

Total

KPI (FY2021) of 5,200 rooms almost achieved
We aim to capture demand after the coronavirus
pandemic has been contained by taking advantageof the convenient locations near stations.

596
259
175

1,673

2,010

5,114

• Quickly suspended hotel operations to prevent the spreadof infection
As of May 13
Total number of hotels%

21

Hotels suspending
operation

12

Hotels postponing
opening/resumption

2

Hotels that have reduced
the accommodation areas

7• Planning to utilize the employment adjustment subsidy system
related to the business suspension• Corporate performance to be improved by introducing
multitasking system in and between facilities as well as
IoT and AI technology• Customer retention to be implemented
by launching an official Hotel Keihan app• Introduction of thermal cameras(Kyoto Tower Observatory)

Selected as a “Diversity Management Selection100” company
Keihan Hotels & Resorts was selected.
It was the only company selected from the hotelindustry in FY2020.
Employment of persons with disabilities as skilled
resources was evaluated.

15

Progress status of major strategic
investment projects
Long-term management strategy
Medium-term management plan

2019
Reconstruction of
Yodoyabashi Midosuji
Bldg.

Redevelop
Keihan
areas

2020

2022

○ Start ofdemolition work

Establishment of the urban
development plan ○Redevelopment of
Nakanoshima
Redevelopment of the areaaround Hirakatashi Station

2021(Fiscal year)2023○ Start ofconstruction work

Create relatable
contents○ Launch of theredevelopment project

Establishment of the urban
development plan ○

2026

2027

Completion ●Opening of the“delta land” ○Project scheduled tobe completed ●Redevelopment of the area around Kyobashi
Station, extension of the Nakanoshima LineTHE THOUSAND
KYOTO● Opening of THE THOUSAND KYOTO

Redevelopment of the areas
around Sanjo, Demachiyanagi
and Chushojima Stations● Opening of the GOOD NATURE STATION, e-commerce launch

Promotion of BIOSTYLE
Premium Car

Eachbusinesssegment

2025

Opening of the International Hub for Medical Innovation ●Regaining the glory of
Osaka’s east to west axis

Co-create
tourism
opportunity

2024● Introduction of the 3000 series

Toranomon Hills
Business Tower
Improving the values ofstoresIncreasing hotel
openings

Opening ●FREST

KEIHAN

Matsui-Yamate CITY MALL
Shop ● ●Kyoto
Hachijoguchi ●Tsukiji Ginza ●Tokyo Yotsuya ●Nagoya● Upgrade of Racto Yamashina● Sendai

Kyoto
Ekiminami ●●● Shin-Tenmabashi* Strategic investment of JPY100 billion is allocated for use during the term of the Medium-Term Management Plan.
We have decided the specific use of approximately 70% of the fund. We will continue promoting our main strategies while 16
considering the financial status and in accordance with changes in the situation.

Shareholder return policy
In fiscal 2020, despite the impact of COVID-19 pandemic, we plan to pay a dividend ofContinuing 35 yen.
stableIn fiscal 2021, we will aim for a stable dividend payment while placing top priority on
dividend
infection prevention and improvement of deteriorated business performance, and making
payment
efforts to be prepared for the days after the pandemic has ended and to secure profits.

Transition of annual dividend, payout ratio and equity capital ratio

Dividend (yen)Equity capital ratio (%)

40.0

40.0

30.0

30.0

FY2016 onwards
Promotion of strategic
investment by businessexpansion

20.0

FY2019 onwards
Implementation of active
investment for future growth

10.0

20.0

10.0

March 2016
Share buyback of 20 billion yen
0.0

0.0
FY2010*Converted factoring in theshare consolidation

FY2011FY2012FY2013

FY2014FY2015
Annual dividend

FY2016FY2017

Equity capital ratio

FY2018FY2019FY2020

FY2021(forecast)

17

Initiatives in ESG
E (Environment)

S (Society)

G (Governance)

Contribution to global warming prevention

Contribution to sustainable development oflocal communities

Enhancing governance system

Development of the environment and acorporate culture encouraging employees toexercise their strengths
Introduction of energyConservation of thesaving railroad car
satoyama environment
THE THOUSAND KYOTO
promotes energy-saving
through greening on thebuilding and utilization ofphotovoltaic power generation
and well water.

• Promoting women’s empowerment
We aim to increase the number of women in leadership
positions such as management by more than 50% by theend of FY2021 (compared to FY2016).
• Approach toward a healthy company
In 2020, Keihan Holdings Co., Ltd.
was selected as a “health andproductivity enterprise 2020.”

Appointment &dismissal

Statement of
Opinions, etc.

Accounting
audit

Representative
director
COO

Directors meeting

Keihan GroupCSR Committee
ReportCooperation

Audit & Internal
Control
OfficeAccounting auditor

Management
Meeting

Appointment
Dismissal

Supervision

Representative
director
CEO

Technical committee
on information security

Meals

ReportTechnical committee
on environmental management

Food
waste

directors)

Technical committee on compliance andcrisis/risk management

Agricultural
products

Appointment &dismissal

Audit Supervisory
Nomination &Board of Directors
Committee
Compensation
13 directors (including 5 outside directors)
Audit & 5 directors serving as audit & supervisory
RecCoopecommittee members
Advisory Committee ommensupervision(including 3 outside directors)
ration3 directors
Report Report
dationAudit(including 2 outside

Internal Control Committee

Fertilizer• Initiatives of Keihan Railway to improve safety
We will make every effort to improve safety and develop
human resources by formulating a medium-term plan forsafety and security.
We have been implementing safety improvement
measures including introduction of the multi-information
continuous control ATS system. We have also carried out
drills against disasters and accidents on a continuous
basis.

Appointment &dismissal

Establishment of internal control systems• We aim to realize recycling
agriculture by installingcomposters in the facility
and using food waste as
fertilizer.

Provision of value trusted by customers suchas “safety and security”

Shareholders’ meeting

Consultation

Supervision• The facility is planningto obtain LEED certification(a global certification forgreen buildings) and
WELL Building Standard®
certification with regard towellness.

• We have decided to be a company with an audit andsupervisory committee since FY2018.
• Selecting five out of thirteen directors from outside of
the company.

Appointment
Dismissal[GOOD NATURE STATION]• The company celebrated its 110th anniversary on April
15, 2020. A commemorative logo was designed after
seeking ideas from employees. In addition,
a commemorative forum “The Expo and
Shibusawa, Future of Kansai” (tentative
title), Family Rail Fair and other events for customers
will be conducted.

Audit &
Supervisory
Committee Office

Audit

Business segments (Transportation, real estate, retail distribution, leisure and service)

Risk management• Formulation of the Business Continuity Plan (BCP)

Ensuring thorough compliance• Continuously implemented education and training
programs for employees• Established the Compliance Hotline• Conducted an awareness survey on compliance18Overview of FY2020

Financial Results

19Consolidated Statements of Income• Both revenue and profits decreased because the real estate business experienced a reactionary decrease in large
condominium sales which had been robust in the previous year. Other reasons include a decrease in inbound tourists
and outing restrictions in Japan due to the COVID-19 pandemic.
(Millions of yen)

FY2020results

FY2019results

ChangeMain factors of changes-9,056(-2.8%)-2,592(-7.7%)FY2020 full-year
forecasts*Impact of the COVID-19 pandemic-JPY7 billion

325,000*Impact of the COVID-19 pandemic-JPY4.9 billion

34,300Change-7,896(-2.4%)-3,176(-9.3%)

Operating revenue

317,103

326,159

Operating income

31,12333,715

2,083

2,016

66

3,320

3,623

-303

29,88632,108-2,222(-6.9%)

3,920

4,312

-391

2,592

4,372

-1,77920,121

21,480-1,359(-6.3%)

23,000Depreciation

20,784

19,819965

21,000-215

EBITDA

51,90853,535-1,62655,300-3,391

Interest anddividend income

1,000

937

62

986

13

Interest expenses

2,189

2,401

-211

2,212

-23

Net interest
expenses-1,188-1,463274-1,22637

Non-operating
incomeNon-operating
expenses
Ordinary income
Extraordinary
incomeExtraordinary
lossesProfit attributable toowners of parent

33,100-3,213(-9.7%)

Loss from disasters -936

*EBITDA: Operating income + Depreciation-2,878(-12.5%)20

Segment Information(Millions of yen)

FY2020results
Transportation

Real estate

Retaildistribution

Leisure andservice

OthersAdjustments

Operatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeOperatingrevenue
OperatingincomeFY2019results

ChangeChange (%)

FY2020 fullyear forecasts

ChangeChange (%)

93,36593,926

-561

-0.6%

95,100-1,734-1.8%

10,862

11,221

-358

-3.2%

11,600

-737

-6.4%

110,228

118,607-8,378-7.1%

110,200

28

0.0%

16,906

17,468

-562

-3.2%

17,100

-193

-1.1%

98,186

98,727

-541

-0.5%

100,400-2,213

-2.2%

3,258

2,923

335

11.5%

3,500

-241

-6.9%

32,081

30,621

1,460

4.8%

35,500-3,418

-9.6%

1,336

1,817

-481

-26.5%

3,300-1,963-59.5%

2,908

1,843

1,065

57.8%

3,500

-591

-16.9%

-921

-57

-863

-

-400

-521

-

-19,667-17,567-2,100--19,700

32

-

-319

342

-662

-

-800

480

-

21

Segment Information (Breakdown)[Consolidated subsidiaries] 42 companies (Addition of one company 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

Retail distribution

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

Leisure and service

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

Others

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

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

53.8 %

32.7 %
27.7 %

JPY
110.2 billion

JPY
93.3 billion

29.2 %

JPY
16.9 billion

JPY

34.5 %

98.1 billion

JPY
10.8 billion

9.5 %
JPY
32.0 billion

0.9 %

10.4 %

4.2 %

JPY

JPY
3.2 billion

1.3 billion

2.9 billion
Transportation Real estate

Retaildistribution

Leisure andservice

JPY-JPY

0.9 billion-2.9 %

OthersTransportation

Real estate

Retaildistribution

Leisure andservice

Note: Breakdown of operating revenue and operating income by segment, including intersegment transactions
The percentages represent the composition ratios in each segment. The total of the composition ratios in each segment makes 100%.

Others22

Segment Information (Transportation)(Millions of yen)

FY2020results

FY2019results

ChangeChange (%)

Operating revenue

93,36593,926

-561

-0.6%

Railway

76,184

76,634

-450

-0.6%

Bus

27,48027,620

-139

-0.5%

Elimination-10,299-10,327

28-

Operating income

10,862

11,221

-358

-3.2%

Railway

9,272

9,788

-516

-5.3%

Bus

1,541

1,393

147

10.6%

49

39

10

-

Elimination(Major factors affecting performance)• The railway business saw decreases in both revenue and profits due to the COVID-19 pandemic causing a significant decrease in the numberof passengers, despite that there was a reactionary rise from the previous year's natural disasters.

• The bus business saw a decrease in revenue due to factors including a decrease in revenue from bus passengers caused by the COVID-19
pandemic, but saw increase in profits due to a decrease in personnel expenses and other reasons.

23Operating Results for Transportation
Keihan Electric Railway
FY2020results

FY2019results

ChangeChange (%)

Millions of yen

Millions of yen

Millions of yen%

Passenger transportation
revenue

51,48152,054-572-1.1

Non-commuter passes

34,37935,187-808-2.3

Commuter passes

17,102

16,866235

1.4

Thousands of people

Thousands of people

Thousands of people%

293,104

295,099-1,994-0.7

Non-commuter passes

145,643

149,795-4,151-2.8

Commuter passes

147,461

145,304

2,156

1.5

Number of passengers(Major factors affecting non-commuter pass passenger revenue)• Impact of the COVID-19 pandemic (-JPY1,250 million), reactionary rise after natural disasters in the same term of the previous year (+JPY304
million)(Major factors affecting commuter pass passenger revenue)• Improved employment situation

24

Segment Information (Real estate)(Millions of yen)

FY2020results

FY2019results

ChangeChange (%)

Operating revenue

110,228

118,607-8,378-7.1%

Real estate

91,413

100,250-8,837-8.8%

Real estate sales

63,75374,907-11,154-14.9%

Real estate leasing service

23,872

21,826

2,045

9.4%

Other businesses

3,787

3,516

271

7.7%

Construction

24,762

24,578184

0.7%

Elimination-5,947-6,222

274-

Operating income

16,906

17,468

-562

-3.2%

Real estate

16,324

16,841

-516

-3.1%

Real estate sales

5,525

6,563

-1,038-15.8%

Real estate leasing service

10,396

9,900

495

5.0%

403

377

25

6.9%

Construction

705

817

-112

-13.8%

Elimination

-123

-190

67

-

Other businesses(Major factors affecting performance)• The real estate sales business saw decreases in both revenue and profits due to a reactionary decrease in sales of large condominiums fromthe previous year, although sales of buildings for business use grew.
• The real estate leasing service saw increases in both revenue and profits due to full-year contribution of properties obtained in the previous
fiscal year.

25

Segment Information (Retail distribution)(Millions of yen)

FY2020results

FY2019results

ChangeChange (%)

98,186

98,727

-541

-0.5%

Department store

50,79650,886

-90

-0.2%

Store

29,83130,143

-312

-1.0%

Shopping mall management

14,81814,78829

0.2%

Other businesses

7,624

7,866

-242

-3.1%

Elimination-4,883-4,95874-

Operating income

3,258

2,923

335

11.5%

Department store

586

292

293

100.1%

Store

592

730

-138

-19.0%

Shopping mall management

1,986

1,839

147

8.0%

Other businesses

78

88

-10

-11.5%

Elimination

15

-28

43

-

Operating revenue(Major factors affecting performance)• Department stores saw a decrease in revenue due to the warm winter causing a decline in sales of winter clothing and the impact of the
COVID-19 pandemic causing restrictions on outings, but saw an increase in profits due to reduction of personnel expenses and other costs,
among other reasons.
• Stores saw decreases in both revenue and profits due to factors such as the impact of the COVID-19 pandemic (restrictions on outings anddecrease in inbound tourists) as well as store closures in the previous year.
• Shopping mall management saw increases in both revenue and profits due to factors including the renovation of KEIHAN CITY MALL and areview of expenses, despite the fact that the malls had to shorten their business hours due to the COVID-19 pandemic.

26

Segment Information (Leisure & service)(Millions of yen)

FY2020results

FY2019results

ChangeChange (%)

32,081

30,621

1,460

4.8%

Hotel

28,33726,800

1,536

5.7%

Leisure

3,772

3,848

-76

-2.0%

Elimination

-27

-27

-0

-

Operating income

1,336

1,817

-481

-26.5%

Hotel

1,379

1,688

-308

-18.3%

Leisure

-62

107

-170

-

Elimination

18

21

-2

-

Operating revenue<< Hotel occupancy rates >>FY2020results

FY2019results

ChangeHotel Keihan

83.6%

94.1%

-10.5 pt

Keihan Hotels & Resorts

79.3%

87.6%

-8.3 pt(Major factors affecting performance)• The hotel business saw a revenue decrease due to intensified price competition with rival companies and the impact of the COVID-19
pandemic. However, the overall revenue increased because the full-year contribution of the new hotels that opened in the previous year
covered the loss. Profits decreased due to the decline in occupancy rates and average daily rate.
• The leisure business saw decreases both in revenue and profits due to factors such as a decrease in the number of leisure facility users after
the COVID-19 pandemic, as well as an increase in expenses associated with golf course renovations.

27

Consolidated Balance Sheets(Millions of yen)

FY2020results

FY2019results

ChangeMain factors of changes

Current assets

177,016

180,080-3,064

Notes and accounts receivable -9,241

Non-current assets

555,808

551,669

4,138

Buildings and structures +14,871
Construction in progress -13,795

732,824

731,750

1,073

Current liabilities

167,695

178,310-10,614

Short-term loans payable -20,852
Current portion of bonds +9,993

Long-term liabilities

311,069

314,744-3,674

Bonds -10,059,Long-term loans payable +5,704

Total liabilities

478,765

493,055-14,289

Net assets

254,058

238,695

15,363

Total liabilities and net assets

732,824

731,750

1,073

ROA

4.3%

4.7%

-0.4 pt*ROA: Operating income to total assets

ROE

8.3%

9.4%

-1.1 pt*ROE: Net income to shareholders’ equity

EBITDA

51,90853,535-1,626*EBITDA: Operating income + depreciation

Interest-bearing debt at end of
fiscal period

327,132

334,346-7,214Loans payable -15,147,Short-term bonds +7,999

Interest-bearing debt/EBITDA
multiple (Times)

6.30

6.25

0.05

Net interest-bearing debt
EBITDA multiple (Times)

6.01

5.85

0.16

Total assets

Retained earnings +16,367*Equity capital ratio 34.1% (+2.0 pt)

28

Consolidated Statements of Cash Flows(Millions of yen)

FY2020results

FY2019results

ChangeMain factors of changes

Cash flows from operating
activities

32,03336,473-4,439

Increase in inventories -4,520

Cash flows from investing
activities-26,363-48,059

21,695Purchase of non-current assets +18,375
Purchase of investment securities +2,665

Cash flows from financing
activities-12,138

12,655-24,794

Decrease in proceeds from issuance of bonds -9,939
Decrease in short-term loans payable -9,295

Net increase (decrease) incash and cash equivalents-6,4681,069-7,538Cash and cash equivalents at
beginning of current period

21,377

20,300

1,076

Cash and cash equivalents at
end of fiscal period

14,911

21,377-6,46629

Capital Expenditure by Segment(Millions of yen)

FY2020results

FY2019results

FY2020 full-year
forecasts

ChangeChangeCapital Expenditure

29,324

43,631-14,306

49,200-19,875

Transportation

13,283

14,609-1,325

15,900-2,616

Real estate

11,82426,080-14,256

16,300-4,475Retail distribution

1,073

1,428

-354

1,800

-726

Leisure and service

1,933

3,364

-1,431

2,000-66

Others

862

9

852

1,500

-637

Adjustments

348-1,8602,209

11,700-11,351

30

EBITDA by Segment(Millions of yen)

FY2020results

FY2019results

FY2020 full-year
forecasts

ChangeChange51,90853,535-1,62655,300-3,391

Transportation

22,597

23,119-521

23,400-802Real estate

22,893

22,666

226

23,100-206

Retail distribution

4,513

4,230

283

4,800

-286

Leisure and service

2,775

2,933

-158

4,800

-2,024

Others

-807

-20

-786

-300

-507

Adjustments

-64

605

-669

-500

435

EBITDA31

FY2021

Forecasts

32

FY2021 Forecasts
1. Postponement of the announcement of consolidated forecasts for FY2021
Consolidated forecasts for FY2021 have not yet been determined since it is not possible to reasonably assess theimpact of the COVID-19 pandemic at this stage. The forecasts will be announced as soon as the company is ready todisclose them.
2. Possible impact of the spread of COVID-19 on consolidated financial results for FY2021
The outlook for the containment of the COVID-19 pandemic is unclear. The government declared a State of Emergency
on April 7 and as such, the number of train and bus passengers has been decreasing. We are also implementing
measures to prevent the spread of the virus at department stores, shopping malls and hotels by suspending operationor shortening business hours at some facilities and cancelling events. These factors may have a significant impact on
our business performance.
《Current status (December 2019-April 2020)》(%)

Keihan Electric Railway:
No. of passengers (YoY)

Keihan Department Stores:
Operating revenue (YoY)

(%)

0.0

20.0

-20.0

0.0

-40.0

-20.0

-60.0

-40.0

(%)

Hotel occupancy rates

100.0
80.0

-80.0

60.0
40.0
20.0

-60.0

Dec. Jan. Feb. Mar. Apr.

0.0
Dec.

Jan.

Feb.

Mar.

Apr.

Dec. Jan. Feb. Mar. Apr.
Hotel Keihan

Keihan Hotels & Resorts

33