First Half of FY2011 ended September 30, 2010
Financial Results Presentation

November 10, 2010
Keihan Electric Railway Co., Ltd.
(Tokyo Stock Exchange 1st/Osaka Securities Exchange 1st
Securities Code: 9045

http://www.keihan.co.jp/)[Notes on forecasts]
Descriptions of business forecasts and future prospects are based on current information and certain
assumptions about factors that may affect future business. The actual results of operating
performance may differ from these forecasts.

Overview of the First Half of FY2011
Financial Results

Consolidated Statements of Income(Millions of yen)

2009/92010/9ChangeMain factors of changes

2010/05
Estimate

Operating revenue

123,887

121,087(2,799)(-2.3%)

Transportation -68, Real estate -3,475, Retail 237,
Leisure and service +384, Others +44

118,700

Operating income

8,667

9,218

551
(6.4%)

Transportation -181, Real estate -539, Retail +646,
Leisure and service +511, Others +95

7,400

517
(7.9%)

Non-operating income -6(Dividends income +83, Miscellaneous income -75)
Non-operating expenses +27(Interest expenses -35, Miscellaneous expense +63)

5,000

Extraordinary income -508 (Contribution for construction -303)
Extraordinary loss -697 (Loss on sales of related companies -326,
Loss on reduction of fixed assets -320)
Income taxes +1,292(Backlash caused by the decrease of the burden due to sales ofsubsidiaries in the previous fiscal year)

2,900

Ordinary income

6,577

7,094

Net income

4,685

4,093

(591)
(-12.6%)

EBITDA

17,047

17,841793(4.7%)EBITDA: Operating income + depreciation−[Changes in scope of consolidation and application of the equity method (year-on-year)]
Consolidated subsidiaries: 41 companies (Number of companies is not changed)
New: Biwako Food Service Co., Ltd. (Part of the business of Biwako Kisen Restaurant Co., Ltd. was transferred to the company. )Eliminated: Biwako Kisen Restaurant Co., Ltd. (The company was merged with Biwako Kisen Steamship Co., Ltd.)
Equity method affiliates: 2 companies (No changes)* Since new accounting standards for disclosing segment information is applied from FY2011, both the results for the first half of FY2011 and FY2010 have been revised according to
the new segment classification.

2

Consolidated Balance Sheets( Millions of yen )2010/3Current assets

Fixed assets

131,166

Change2010/9127,504

Main factors of changes(3,661)

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

-5,775-2,642+4,852

Property, plant and equipment(Newly-purchased buildings, etc.)
Intangible fixed assets
Investments and other assets+9,437-18+1,931

458,463

469,814

11,350589,629597,319

7,689

Current liabilities

166,510

177,395

10,885Current portion of bonds
Short-term bonds+9,596+3,000Long-term liabilities

290,066

285,479(4,587)

Bonds
Long-term loans-9,715+2,033

Total liabilities

456,577

462,874

6,297

Net assets

133,052

134,444

1,391

Liabilities and net assets

589,629597,319

7,689

Total assets

Interest-bearing debt at end ofinterim period

310,289

313,933

3,643

Retained earnings+2,686
Valuation difference on available-for-sale securities -1,367*Equity capital ratio
22.1% (-0.1pt)

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

3+2,012+3,000-1,249-118

Consolidated Statements of Cash Flows(Millions of yen)

2009/9Operating cash flows

2010/96,610

Change10,652Main factors of changes

4,041

Income before income taxes
Changes in notes and accounts payable
Changes in inventories

Purchase of fixed assets+5,567
Proceeds from sales of fixed assets+595
Proceeds from contribution for construction -2,622

Investing cash flows(22,081)(18,551)

3,530

Financing cash flows

15,0301,719(13,310)Net increase (decrease) in cash
and cash equivalents(441)(6,179)(5,738)

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

−

12

12

28,577

22,829(5,748)Cash and cash equivalents
at end of interim period

4Issuance and redemption of bonds
Changes in short-term bonds
Changes in loans payable+706+1,602-2,495-18,696+7,000-1,322

Segment Information(Millions of yen)

2009/9Change2010/9Change (%)

123,887

121,087(2,799)(2.3)

Transportation

48,61948,551

(68)

(0.1)

Real estate

23,714

20,238(3,475)(14.7)

Retail

45,36645,604237

0.5

Leisure and service

11,626

12,011

384

3.3

617

661

44

7.2

Elimination(6,056)(5,979)77−

Operating income

8,667

9,218

551

6.4

Transportation

4,468

4,287

(181)

(4.1)

Real estate

4,218

3,679

(539)

(12.8)

Retail

166

813

646

387.5

Leisure and service

72

583

511

706.9

Others

(246)

(150)

95

−

Elimination

(12)

6

18

−

Operating revenue

Others5

Results of Transportation(Millions of yen)

2009/9Operating revenue

2010/948,619Operating income

Change48,551

4,468

(68)

4,287

Remarks

Change (%)

(181)

(0.1)

Railway operation
Bus
Taxi

39,617 (-613)
12,289 (+247)
2,071 (-62)(4.1)

Railway operation
Bus
Taxi

4,001 (-123)
356 (+23)-64 (-42)・Due to the rise in fuel cost:
Fuel charge in Bus and Taxi +126 million yen
・Utility work (Railway operation):
Decreased revenue by 512 million yen
・Welfare for elderly and nursing care service (Railway operation):
Increased revenue in nursing home by 138 million yen
Increased revenue in day-care service by 44 million yen
Name

Opening date

Location

Rose Life Takanohara

November 1, 2009

Kizugawa city, Kyoto

Moriguchi Day Service CenterMay 1, 2009

Moriguchi city, Osaka<< Operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)
2009/9Passenger transportation revenue(Millions of yen)

Change2010/9Change (%)

2009/92010/9ChangeChange (%)

Commuter passes

73,05370,439(2,614)

(3.6)

8,525

8,195

(330)

(3.9)

Non-commuter passes

71,182

72,144961

1.4

16,897

16,928

30

0.2

−

−

−

−

0

0

(0)

(5.8)

144,236

142,583(1,653)(1.1)

25,42325,124

(299)

(1.2)

Carriage on parcels
Total*Nakanoshima Line (Passengers only using Nakanoshima Line):
Number of passengers:
4,502 thousand people (+182 thousand people, +4.2%)
Passenger transportation revenue: 407 million yen(+14 million yen, +3.8%)

6

Results of Real Estate(Millions of yen)

2009/92010/9ChangeChange (%)

Remarks

Operating revenue

23,714

20,238(3,475)(14.7)

Real estate
Construction

15,778 (-3,246)
4,531 (-663)

Operating income

4,218

3,679

(539)

(12.8)

Real estate
Construction

3,770 (-616)-106 (+90)

・ Condominium sales : Sales for N4. TOWER decreased by 5,102 million yen (Sold units: -252 units)
・ Valuation loss of land and buildings for sale ：27 million yen (-1 million yen ) (Recorded as cost of sales)<<Results by business>>
Operating revenue
2009/92010/9Operating income

ChangeChange (%)

2009/9Change2010/9Change (%)

Real estate sales

12,3499,103(3,245)(26.3)

1,217

308

(908)

(74.7)

Real estate leasing service

6,675

6,674

(1)

(0.0)

3,169

3,461

292

9.2

Total

19,024

15,778(3,246)(17.1)

4,387

3,770

(616)

(14.1)<<New leasing properties>><<Main condominium buildings for sale>>
Name

Sales
amountNumber ofunits sold

Location

REFFINEZ KOSHIENGUCHI

931

26

Nishinomiya city, Hyogo

The Lions Hirakata Gotenyama

929

303

Hirakata city, Osaka

Fine Residence Yokohama Katakura Park
Premier
N4. TOWER

910
260

23

Kanagawa ward, Yokohama city

12

Nakanoshima 4-chome, Kita ward,
Osaka city

7

Name

Acquired date

Location

Tokyo Tatemono Osaka Building

September 2010

Chuo ward, Osaka city

INTAGE Akihabara Building

September 2009

Chiyoda ward, Tokyo

Trust beneficiary rights of all the properties were acquired.
The name of Tokyo Tatemono Osaka Building is to be changed into
“Keihan Midosuji Building” on April 1, 2011.

Results of Retail(Millions of yen)

2009/9Operating revenue

Operating income

2010/945,366

166

Change45,604

Change (%)

237

813

646

Remarks

0.5

Department store
Store
Shopping mall management
Restaurant

23,608 (-293)
14,584 (-34)
5,329 (+72)
3,600 (+627)

387.5

Department store
Store
Shopping mall management
Restaurant

180 (+469)
186 (+101)
365 (+97)
71 (-17)

・Restaurant: An increasing factor generated by merger with non-consolidated subsidiaries: 514 million yen<< New Properties >>Name<< Sales of Department Store >>Opening date

Location

SWEETS BOX Tambabashi Store

September 24, 2010

Fushimi ward, Kyoto city

Hakodateichiba AEON Mall Kyoto Hana Store

April 21, 2010

Ukyo ward, Kyoto city

Mendokoro Ashikari
COCOE Amagasaki Store

October 20, 2009

Pomu no ki Jr.
COCOE Amagasaki Store

October 20, 2009UNIQLO Nankai Namba Station Store

October 16, 2009<< Sales of Store >>Amagasaki city, Hyogo

Store

Sales
amountChangeMoriguchiStore

11,787(293)

Kuzuha Store

4,735

50

Kyobashi
Store

3,715

(21)

Hirakata Store

3,071

(26)

Amagasaki city, Hyogo
Chuo ward, Osaka city

SWEETS BOX Nankai Namba Station Store

October 15, 2009

Chuo ward, Osaka city

UNIQLO Namba Walk Store

August 28, 2009UNIQLO Keihan Hirakata Store(Millions of yen)

(Millions of yen)

Chuo ward, Osaka city

Miscellaneous
revenue

298(4)July 24, 2009

Hirakata city, Osaka

Total

23,608(293)

An3 Gotenyama Store

July 13, 2009

Hirakata city, Osaka

SWEETS BOX JR Kyoto Station Store

April 23, 2009

Shimogyo ward, Kyoto city

8

Sales
amountChange

Store

6,481

(54)

Convenience
store

3,015

5

Kiosk

505

(49)

Stationbusiness

4,102

71

Miscellaneous
revenue

479

(8)

Total

14,584(34)

Division* Station Business
UNIQLO retail stores 776 (+192)(Number of stores: 7 stores)

Results of Leisure and Service(Millions of yen)

2009/92010/9ChangeChange (%)

Remarks

Operating revenue

11,626

12,011

384

3.3

Hotel
Leisure9,430 (+590)
2,713 (-263)

Operating income

72

583

511

706.9

Hotel
Leisure313 (+558)
265
(-47)

<< Hotel occupancy rates >>2009/92010/9ChangeRemarks

Kyobashi

80.4％

88.7％

8.3

Temmabashi

71.6％

73.9％

2.3

Kyoto

82.7％

91.8％

9.1

Universal City

63.8％

76.8％

13.0

Universal Tower

51.5％

70.4％

18.9

Asakusa

−

85.8％

85.8

Opened on November 21, 2009

Sapporo

−

84.6％

84.6

Opened on June 6, 2009

Biwako Hotel

71.8％

73.2％

1.4

Kyoto Tower

83.7％

94.6％

10.9

Hotel
Keihan9

Non-consolidated Statements of Income(Millions of yen)

2009/9Operating revenue

2010/9ChangeChange(%)

2010/05
Estimate

Remarks

36,96438,3701,406

3.8

Railway operation

27,09026,727

(362)

(1.3)

Subsidiary business

9,873

11,643

1,769

17.9

11,110Real estate sales

2,123

3,394

1,271

59.9

3,000

Real estate leasing service

6,332

6,674

341

5.4

6,640

Leisure

1,417

1,573

156

11.0

Operating income

6,955

7,442

486

7.0

6,580

Railway operation

3,786

3,582

(204)

(5.4)

3,240

Subsidiary business

3,169

3,860

691

21.8

3,340

Real estate sales

22

205

183

818.5

(80)

3,119

3,461

342

11.0

3,370

Leisure

27

193

165

595.8

50

Ordinary income

5,341

5,924

583

10.9

Real estate leasing service

Net income

4,320

3,578

(741)

10

(17.2)

37,800
Number of passengers
Passenger transportation revenue

Number of visitors in Hirakata Park

Non-operating income
Non-operating expenses(Interest expenses

-1.1%
-1.2%

+3.2%

+1
-94
-44)

Extraordinary income-390(Contribution for construction-283)
Extraordinary loss
-485
(Reduction entry of land contribution for construction -319)
Income Taxes+1,419(Backlash caused by the decrease of the burden due to salesof subsidiaries in the previous fiscal year)

26,690

1,470

4,950

3,220

Business Results Forecast of FY2011

Forecast of Consolidated Business Results (1)(Millions of yen)
FY2010 Results

FY2011
Forecast

ChangeChange (%)

2010/05
Estimate

Main factors of changes

Operating revenue

254,761

250,000(4,761)(1.9)

Transportation
Real estate
Retail-2,243-4,835+1,809252,200

Operating income

13,766

13,500

(266)

(1.9)

Transportation
Real estate
Leisure and service

-580
-458
+1,05913,500Ordinary income

9,200

8,300

(900)

(9.8)

Non-operating income
Non-operating expenses

-263
+371

8,300

Net income

4,498

4,900

401

8.9

Extraordinary income
Extraordinary loss

-935
-2,1544,900

Capital expenditures

43,85337,800(6,053)(13.8)

Depreciation

17,42017,700279

1.6

EBITDA

31,186

31,20013

0.0Interest-bearing debt

310,289

317,400

7,110

2.3

Interest-bearing debt /EBITDA multiple(Times)

9.9

10.2

0.3

–

[Breakdown of capital expenditures]Transportation
18,100 (+5,191)
Real estate
14,300 (-12,252)
Retail4,500 (+3,646)
Leisure and service
500 (-3,361)
Corporate, etc.
400(+734)<<Main capital expenditures for FY2011 >>(Transportation)
Investment on our railway
12,137(Real estate)
Investment on our real estate
14,256(Retail)
Keihan Department Suminodo Store 1,629

36,10017,70031,200317,400
10.2* Since new accounting standards for disclosing segment information is applied from FY2011, both the results for FY2010 and the forecast for FY2011 have been revised according to
the new segment classification.

12

Forecast of Consolidated Business Results (2)<< By segment >>(Millions of yen)
ChangeFY2011 Forecast

Operating revenue

254,761

250,000(4,761)(1.9)

Transportation

96,543

94,300(2,243)

(2.3)

Taxi
Railway operation-2,172-288

96,500Real estate

53,33548,500(4,835)(9.1)

Real estate sales
Real estate leasing service-4,998+127

48,500Retail93,29095,1001,809

1.9

Department store
Store+1,403+134

95,100

Leisure and service

22,485

23,100

614

2.7

Hotel

+698

23,100

Others

1,249

1,200

(49)

(3.9)

1,200

Elimination(12,143)(12,200)(56)−(12,200)

Operating income

13,766

13,500

(266)

(1.9)

13,500Transportation

5,980

5,400

(580)

(9.7)

Railway operation

-631

5,400

Real estate

7,458

7,000

(458)

(6.1)

Real estate sales
Real estate leasing service

-335
+11

7,000

Retail

1,057

800

(257)

(24.3)

Department store
Store

+132
-195

800

Leisure and service

(359)

700

1,059

−

Hotel

+871

700

Others

(359)

(400)

(40)

−

(400)

Elimination

(11)

0

11

−

0

13

Change (%)

2010/05
Estimate

FY2010 Results

Main factors of changes

252,200

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

Main factors of changes

Change (%)

FY2010 Results

FY2011 Forecast

73,40074,300899

1.2

Railway operation

53,90953,240(669)(1.2) Passenger transportation revenue

Subsidiary business

19,49121,0601,568

8.0Real estate sales

4,111

5,100

988

24.1

Real estate leasing service

13,133

13,600466

3.6

Leisure

2,246

2,360

113

5.0

Operating income

11,922

10,980

(942)

(7.9)

Railway operation

6,101

5,210

(891)

(14.6)

Subsidiary business

5,821

5,770

(51)

(0.9)

Real estate sales

(341)

(470)

(128)

–

Real estate leasing service

6,526

6,580

53

0.8

Leisure

(363)

(340)

23

–

Ordinary income

6,857

7,040

182

Net income

5,176

4,400

(776)

Operating revenue

ChangeNumber of passengers

-0.9%
-1.0%

Non-operating income-172-1,298Extraordinary income-1,449-839

2.7 Non-operating expenses(15.0) Extraordinary loss<< Forecast of operating results for transportation (Keihan Electric Railway) >>Number of passengers (Thousands of people)
FY2010 Results

FY2011 Forecast

Commuter passes

140,435

138,025

Non-commuter passes

143,316

Carriage on parcels
Total

ChangePassenger transportation revenue (Millions of yen)

Change (%)

FY2010 Results

FY2011 Forecast(2,410)(1.7)

16,565

16,174

(391)

(2.4)

143,237

(80)

(0.1)

33,937

33,843

(94)

(0.3)

–

–

–

–

1

1

(0)

(1.2)

283,751

281,262(2,490)(0.9)

50,50450,018

(486)

(1.0)

14

ChangeChange (%)

TOPICS

Progress of Prioritized Measures

Positioning of Our Business and Prioritized Measures in
FY2011
Positioning of Our Business in FY2011
Placing more emphasis on establishing a robust business base.
We will invest in future growth by paying attention to the recovery of earning
ability for existing businesses (operating cash flow) and changes in financial health.
Prioritized Measures in FY2011◆Distinction and concentration of business

Enforcementof BusinessBase

and assets◆ Reorganization and integration for

management efficiency◆ Reinforcement of profitability◆ Promotion of efficiency measures◆ Establishment of stable revenue baseRealizationof Growth-- Efforts to acquire new real estate forleasing◆ Promotion of the area strategy(Nakanoshima, Kyoto, Kuzuha)

16

We are promoting ourcore businesses, especiallyrailways, department
stores, and hotels.

We will invest in future
growth by paying
attention to changes infinancial health.

Enforcement of Business Base
Railway operation◆ Security Measures• Promotion of establishing the overhead crossing near Yodo Station
The line (for Osaka) was already elevated (September 2009)
Elevation of the line (for Kyoto) and removal of three railway
crossings are to be performed in May 2011.
[Outline of construction]
Length of railway zone to be constructed: Approx. 2 km
(Of which, the elevated zone is 1.47 km in length.)
Total project cost: approx. 28.0 billion yen (Our financial burden: approx. 5.6 billion yen)
Schedule: May 2011 Elevation of the railway for Kyoto and removal of railway crossings
End of FY2012 (planned): Completion of station square development• Promotion of barrier-free implementation[Scheduled to completion in FY2011: 9 stations]
Keihan Line: Yodoyabashi Sta., Morishoji Sta., Doi Sta., Yawatashi Sta., Tofukuji Sta.
Katano Line: Miyanosaka Sta., Hoshigaoka Sta. Kozu Sta.
Uji Line:
Rokujizo Sta.

◆ Improvement of Efficiency

・ Efficient operation of vehicles
Reducing the number of vehicles and promoting efficient vehicle operation by changing
some of the seats of express vehicles into long seats17

Enforcement of Business Base
Department store◆ MD (Merchandising) reconstruction taking advantage of the store nearest the location
Moriguchi Store:

Reconstructed the ladies fashion section, centered on a large cosmetics
zone, and targeted at ladies in their 30s and 40s in the Keihan domain
area

Kyobashi Store:

Targeted at female office workers and strengthen fashion sensitivity andprice responsivenessz To further raise the existence in the community as a community-based
department store, we began to study the renewal of Moriguchi Store foodfloor, the greatest strength of Keihan Department Store.
◆ The business returned to the black in the first half through our(Millions of yen)cost reduction efforts.

26,00025,786

Operating revenue
Operating incom e[Result of first half of FY2011]

25,000Operating revenue:

24,00023,902

23,608 million yen (YoY change: -1.2%)

23,000Effect of reducing operating expenses:
YoY change: -578 million yen (-10.3%)

22,000(Major factors)
Personnel expenses:
YoY change: -297 million yen (-12.4%)
Advertising expenses: YoY change: - 99 million yen (-26.7%)
Operating income:161 million yen (YoY change: ＋469 million yen)

21,00018

23,608
161

-131
-309

20,0001H FY2009

1H FY2010

1H FY2011[Operating Result of Keihan Department Store]

600
500
400
300
200
100
0
-100
-200
-300
-400

Enforcement of Business BaseHotel

10,000Operating revenue
Operating incom e

9,500[Main efforts and the effects]◆ Further fortification of sales activities

9,000

8,881

8,839

(Millions of yen)
600

9,430
313

500
400
300

8,500

200

・Attract more inbound and group visitors, and via the Web site,
to Universal Studio’s two hotels (Universal Tower / City)[Effect in the first half of FY2011]

8,000

44

100

7,500
7,000

0

-245

6,500

-100
-200

* The figure shown below represents the total of Universal Studio’s two hotels.
-300
6,000
Number of rooms occupied: +30.45% year on year
1H FY2009 1H FY2010 1H FY2011
70% or more of the increase is due to inbound[Operating Result of Hotel (consolidated)]
visitors and visitors attracted via the Web site.

・Increase sales and room charge by planning and marketing Keihan Group’s
unique plans and introducing luxury plans
・Promote members club and special corporate membership◆ Cost reduction and improving business efficiency

Implement efficiency measures by reducing outsourcing expenses and addressing the strategic chain-style business◆ New hotels (Hotel Keihan Sapporo and Asakusa)

Raise awareness and maintain high occupancy (84.6% in Sapporo and 85.8% in Asakusa)
Acquire the highest satisfaction rate of visitors in the area, among the same class of hotels
In addition, we work to promote business reform to raise corporate competitiveness from a longterm viewpoint, such as improvement of the sales system, personnel system reform, and wellplanned human resources development.

19

Enforcement of Business Base
Other measures◆ Improvement of profitability

・ Launch and expand a short-distance bus service utilizing the Second Keihan
Highway (Opened in March 2010, between Hirakata-Higashi IC and
Kadoma JCT)
Limousine bus line for Kansai International Airport was changed fromthe conventional line via the Meishin Expressway (March 2010)
The “Direct Express Choku Q Kyoto” line service (opened in November 2009, between Kyoto Station andMatsui-Yamate Station) was expanded (April 2010)[Results of the first half of FY2011 ]The sales of both lines increased by 102 million yen as compared to the previous year due to raising competitiveness.

Hanshin Expressway 8 – Kyoto Line – Inariyama tunnel
Launched “Yamashina Express Line” (direct linkage between Kyoto Station and Yamashina area) (November 2010)

・ Expansion of “ekinaka” (within the ticket gate area of stations) stores and opening new stores(Tambabashi Station, September 2010)
Expanded store space in the station area and opened four stores including
SWEETS BOX and bakery cafeContinue to add value and improve profitability of the stations

・ Opening of “Uminoeki Shiga-Ryuo Oishiya Ureshiya”
Offer high-quality goods at Lake Biwa and Shiga
Opened inside Mitsui Outlet Park Shiga-Ryuo (July 2010) following the Hamaotsu andBiwako-Ohashi stores

20

Enforcement of Business Base
Other measures◆ Distinction and concentration of business and assets

・Withdrawal of taxi business (October 2010)
All shares of Keihan Taxi Co., Ltd., Uji Keihan Taxi Co., Ltd., Osaka Keihan
Taxi Co., Ltd., Kisen Taxi Co., Ltd. were transferred to Daiichi Kotsu Sangyo
Co., Ltd.

6,000
5,500

Operating revenue

4,989

Operating income

4,500[Influence on consolidated results of FY2011 (Full year) ]

3,000

21

4,244

(The influence on the operating income, ordinary income, and net income
is minor. )

-19

3,500

40
0
-20

-56

-40
-60

2,000

-80
FY2008FY2009FY2010[Operating Result of Taxi (consolidated) ]・Closing of an unprofitable store (FREST Owada) (October 2010)
The stores for which business is expected to be difficult to improve may beclosed at an earlier stage.

◆ Promotion of efficiency measures

・ Introducing an accounting shared service into group companies is being promoted with a view to introductionof IFRS.

21

80

20

4,000

2,500

-2,200 million yen

100
60

5,000

(The shares of wholly owned subsidiaries of Keihan Taxi Co., Ltd. (Shiga
Keihan Taxi Co., Ltd., Tsuruga Keihan Taxi Co., Ltd., and Travel KeihanCo., Ltd.) were also transferred.
Operating revenue(Millions of yen)

5,484Realization of Growth
Real estate◆ Acquisition of trust beneficiary right of “Tokyo Tatemono Osaka Building”

The building is located in an office area that represents Osaka, with a good location
facing Midosuji street, and plays an important role in our business base.
[Property Outline]
Location:
3-7-12 Kitahama, Chuo ward, Osaka city
Directly connected to Yodoyabashi Station of Keihan railway and Osaka
City Subway
Total floor space: 15,774.69㎡
Building scale: Steel-reinforced concrete, 10 stories high and 2 stories below
Completion:
April 1985

Tokyo Tatemono Osaka Building*The building name is to be changed to “Keihan Midosuji Building” from April 2011.

◆ Enter into Asset Management business

Established a new Asset Management Department in Keihan Dentetsu Real Estate Co., Ltd. and completed theregistrations of the general real estate investment advisory service, investment advice and agency (August 2010)
Property management functions for buildings and lease condominiums were unified into Keihan Kind Co., Ltd. toaddress the fee business depending on the expansion of operating assets.

22Realization of Growth
Real estate◆ Promotion of new condominium sales・ “The Korien Tower”
Participation in the type 1 urban area redevelopment project in the third
block of Korien Station East district[Property Outline]
Location:
Kori-Hondori town, Neyagawa city, Osaka (in front of Korien Sta.)
Building structure:
37 stories high with a basement
Total number of units: 331 (Of which, units for sale: 289)
Move-in dates：
March 2011 (Planned)*2nd block (Kansai Medical University Kori Hospital):
Opened in July 2010
1st block (High-rise apartment building / Commercial wing): To be completed in FY2014

・Grand First Senri Momoyamadai
Contribution to local revitalization by participation in the building
reconstruction project[Property Outline]
Location:
Building structure:

Momoyamadai, Suita city, Osaka
15 stories high with a basement(1st to 9th buildings, a common building, and others)
Total number of units: 798 (Of which, units for sale: 545)
Move-in dates:
September 2011 (1st and 2nd buildings),
and January 2012 (3rd to 7th buildings)
April 2012 (8th and 9th buildings) (Planned)

We continue to promote the redevelopment of the base areas including areas surrounding main
stations in our domain area, and steadily construct bases that exert group synergy.

23Realization of Growth
Retail◆ Opening of Keihan Department Suminodo Store (October 2010)

A frequent-visit casual department store based on the concept of “New Style andTake-a-walk Department Store” that holds its own against general urban
department stores.
Positioned as a low-cost high-profit model. Operation is achieved with about half
the number of employees as other same-sized stores.
[Property Outline]
Location:
Akai, Daito city, Osaka (inside Pop Town Suminodo Opera Park)Store composition:1st floor: Foods
2nd floor: Fashion & Beauty
3rd floor: Books, Shoes, and Men’s Fashion
Sales space:approx. 10,000㎡
Sales goal:
approx. 7.0 billion yen (for one year after opening) *3.6 billion yen for FY2011

Fortification of business cooperation with the specialty shops
Introduced the Keihan Group common “Okeihan Point” system into
the specialty stores and adopt the e-kenet card as an official card
⇒ Fortify cooperation between the Department Store and thespecialty stores in order to improve visitor convenience and theentire shopping center attractiveness, and then generate asynergistic effect.

24Realization of Growth
Retail◆Expanding the commercial facility operation into the areas outside ourdomain areas
Operate the site of “HMV Shibuya” as a commercial facility
Invite a fast-fashion brand “FOREVER 21” (originated in Los Angeles)[Property Outline]
Name:
Takagi Building
Location:
Udagawa town, Shibuya ward, Tokyo
Building structure: 8 stories high and 2 stories below
Leased space:(Total of 1st - 6th floor) 4,196.72㎡

Past results
Location

Schedule
June 2006

Onoda SunPark

Yamaguchi Prefecture

April 2009

Ginza Optica

Chuo ward, Tokyo

September 2009 Felicita Shinsaibashi

April 2010

Chuo ward, Osaka city

Felicita Sanjo Kiyamachi

Nakagyo ward, Kyoto city

Hawks Town Mall

Chuo ward, Fukuoka city

Entrusted content
Renewal supervision
Operation support
PM (Property Management) operations(Leasing, Tenant management,
Accounting service, Building
management, and Reporting)
PM operations including facility
operation plan and sales promotion(resident)

We continue to aggressively address business development by steadily achieving results
25