First Half of FY2019(Ended September 30, 2018)

Financial Results Presentation
November 13, 2018
Keihan Holdings Co., Ltd.
(Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.co.jp/)

Table of Contents

Overview of the First Half of FY2019 Financial Results… 2

FY2019 Forecasts… 14

Progress Status of Medium-Term Management Plan
“Create Living, Community, and Excitement”… 20◆Notes on forecasts◆
Descriptions of business forecasts and future prospects are based on current information and certain assumptions about factors that may affectfuture business.
Actual results may differ due to various factors that may arise in the future.

1

Overview of the First Half of FY2019

Financial Results2

Consolidated Statements of Income• Despite the impact of natural disasters such as typhoons, operating revenue, operating income, and ordinary income increased due in part tothe sale of development properties in the real estate business. Profit attributable to owners of parent decreased due to a drop in gain on sale of
Keihan Life Support shares, which was posted in the previous fiscal year.
(Millions of yen)
1H FY2019

1H FY2018
Results

1H FY2019
Results

Operating revenue

143,752

152,846

Operating income

15,74017,014

962

1,064

102

1,848

1,782

-66

14,854

16,2971,442(9.7%)

3,858

894-2,964

418

453

35

12,532

10,949-1,583(-12.6%)

Depreciation

9,298

9,605

306

EBITDA

25,03926,6201,580(6.3%)

Interest and dividend
income

512

602

89

Interest expenses

1,278

1,219

-59

Net interest expenses

-765

-616

148

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

ChangeMain factors of changes

9,093(6.3%)
1,274(8.1%)(projections
released in May)

* Impact of natural disasters -JPY1.9 bn

148,000* Impact of natural disasters -JPY1.1 bn

15,600Change4,846(3.3%)
1,414(9.1%)

14,7001,597(10.9%)

10,000949(9.5%)

Gain on sale of subsidiaries andassociates -3,164Losses due to disasters 107* Impact of natural disasters -JPY0.8 bn* EBITDA: Operating income +Depreciation

3

Segment Information
Impact of natural disasters
Breakdown of operating revenue: Transportation -JPY0.5 bn; Retail distribution -JPY0.7 bn; Leisure and service -JPY0.6 bn
Breakdown of operating income: Transportation -JPY0.5 bn; Retail distribution -JPY0.1 bn; Leisure and service -JPY0.4 bn(Millions of yen)

1H FY2018
Results

1H FY2019
Results

Change (%)

ChangeOperating revenue

46,59546,863268

0.6%

Operating income

5,993

6,414

420

7.0%

Operating revenue

40,02650,733

10,706

26.7%

Operating income

6,230

7,264

1,033

16.6%

Retaildistribution

Operating revenue

48,60947,625

-984

-2.0%

Operating income

975

1,150

175

18.0%

Leisure andservice

Operating revenue

15,951

15,009

-941

-5.9%

Operating income

2,914

2,097

-816

-28.0%

Operating revenue

929

921

-8

-0.9%

Operating income

12

-10

-22

−

Operating revenue-8,360-8,307

53−

Operating income

-385

98

484

−

Transportation

Real estate

OthersAdjustments

4Segment Information (Breakdown)[Consolidated subsidiaries] 40 companies (No change year on year) [Equity-method affiliates] 2 companies (No change year on year)
Transportation

Keihan Electric Railway Co., Ltd., Keifuku Electric Railway 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 7 othercompanies

Retail distribution

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

Leisure and service

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

OthersKeihan Card Co., Ltd.

<Operating revenue by segment>

Leisure and Service
JPY15.0 billion(9.3%)

Retail distribution
JPY47.6 billion(29.5%)

Others
JPY0.9 billion (0.6%)

Transportation
JPY46.8 billion(29.1%)<Operating income by segment>

Leisure and Service
JPY2.0 billion(12.4%)
Retail distribution
JPY1.1 billion(6.8%)

Real estate
JPY50.7 billion(31.5%)
Note: Breakdown of operating revenue and operating income by segment, including intersegment transactions.

Others
JPY-0 billion (-0.1%)

Transportation
JPY6.4 billion(37.9%)

Real estate
JPY7.2 billion(43.0%)
5

Segment Information (Transportation)(Millions of yen)

Change(%)

1H FY2018 Results

1H FY2019 Results

Operating revenue

46,59546,863268

0.6%

Railway

38,15138,061

-89

-0.2%

Bus

13,47813,736257

1.9%

Elimination-5,035-4,934100−

Operating income

5,993

6,414

420

7.0%

Railway

5,228

5,537

308

5.9%

Bus

760

871

110

14.6%

4

6

1

−

Elimination

Change(Major factors affecting performance)• The railway business saw revenue decrease due to the impact of service suspensions owing to natural disasters. However, profits increased on the back of
an increase in the number of commuter pass passengers and full-year contribution of Premium Cars and Liner trains at Keihan Electric Railway, as well as adrop in costs.
• The bus business saw increases in both revenue and profits due to a rise in the number of users of the Kansai International Airport route (limousine bus).

6

Operating Results for Transportation Keihan Electric Railway

1H FY2018
Results

1H FY2019
Results

Change(%)

ChangeMillions of yen

Millions of yen

Millions of yen%

Passenger transportation
revenue

25,88825,849-39-0.2

Non-commuter passes

17,47017,305-165-0.9Commuter passes

8,418

8,544

125

1.5

Thousands of people

Thousands of people

Thousands of people%

148,845

148,390

-454

-0.3

Non-commuter passes

75,60373,902-1,701-2.2

Commuter passes

73,241

74,4871,246

1.7

Number of passengers(Major factors affecting non-commuter pass passenger revenue)• Impact of natural disasters (-JPY307 million); full-year contribution of Premium Cars and Liner trains (+JPY172 million)(Major factors affecting commuter pass passenger revenue)• Improved employment situation

7

Segment Information (Real Estate)(Millions of yen)

Change(%)

1H FY2018 Results

1H FY2019 Results

Operating revenue

40,02650,733

10,706

26.7%

Real estate

32,62843,902

11,273

34.6%

Construction

9,558

9,885

326

3.4%

Elimination-2,160-3,054-893−

Operating income

6,230

7,264

1,033

16.6%

Real estate

6,497

7,433

935

14.4%

Construction

-127

-119

8

−

Elimination

-138

-49

89

−

Change(Major factors affecting performance)• The real estate sales business saw increases in both revenue and profits due in part to the sale of development properties and robust sales ofcondominiums with large profit margins.
• Although revenue of the real estate leasing service was roughly unchanged from the same half term of the previous year, profits decreased
partly on the back of a rise in repair costs.

8

Breakdown of the Real Estate Business(Millions of yen)

Change(%)

1H FY2018 Results

1H FY2019 Results

32,62843,902

11,273

34.6%

Real estate sales

20,396

31,608

11,211

55.0%

Real estate leasing service

10,543

10,58137

0.4%

Other businesses

1,689

1,713

23

1.4%

6,497

7,433

935

14.4%

Real estate sales

1,195

2,398

1,202

100.6%

Real estate leasing service

4,999

4,846

-153

-3.1%

Other businesses

301

188

-113

-37.5%

Operating revenue

Operating income

Change9

Segment Information (Retail distribution)(Millions of yen)

Change(%)

Change1H FY2018 Results

1H FY2019 Results

48,60947,625

-984

-2.0%

Department store

23,07923,326

247

1.1%

Store

15,797

15,105

-692

-4.4%

Shopping mall
management

7,397

7,275

-121

-1.6%

Others

4,487

4,004

-482

-10.8%

Elimination-2,152-2,08665−

Operating income

975

1,150

175

18.0%

Department store

-308

-221

87

−

Store

439

457

18

4.2%

Shopping mall
management

857

827

-29

-3.4%

Others

-17

81

99

−

5

5

-0

−

Operating revenue

Elimination(Major factors affecting performance)• Department stores saw revenue increase due to robust sales of cosmetics on the back of inbound demand. Their losses were also improved.
• Stores saw profits increase owing to the robust UNIQLO business by capturing inbound demand, while revenue dropped due to the shift to a
fixed-term leasehold for some of the tenant contracts.
• Shopping mall management saw both revenue and profits decrease due to business suspensions following natural disasters as well as theimpact of shorter business hours.

10

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

Change(%)

Change1H FY2018 Results

1H FY2019 Results

15,951

15,009

-941

-5.9％

Hotel

13,701

12,838

-863

-6.3％

Leisure

2,337

2,185

-152

-6.5％

Elimination

-87

-13

73

−

Operating income

2,914

2,097

-816

-28.0％

Hotel

2,483

1,817

-665

-26.8％

Leisure

419

268

-151

-36.0％

Elimination

10

10

0

−

1H FY2018 Results

1H FY2019 Results

Hotel Keihan

97.5%

94.0%

-3.5ptKeihan Hotels & Resorts

94.9%

89.4%

-5.5ptOperating revenue<< Hotel occupancy rates >>Change(Major factors affecting performance)• The hotel business saw both revenue and profits decrease due in part to business suspensions following natural disasters and the renovation of
the Kyoto Century Hotel.
• The leisure business also saw both revenue and profits decrease partly owing to the impact of natural disasters.

11

Consolidated Balance Sheets(Millions of yen)

FY2018Results

1H FY2019
Results

ChangeMain factors of changes

Current assets

168,266

161,414-6,852

Notes and accounts receivable
Land and buildings for sale

-11,340+6,588Non-current assets

530,519534,882

4,362

Construction in progress
Investment securities+2,813+2,716

698,786

696,296-2,490-9,052-3,456+7,000Total assets
Current liabilities

161,600

154,396-7,203

Accounts payable
Short-term loans payable
Short-term bonds

Long-term liabilities

313,626

309,259-4,367Long-term loans payable-4,578

Total liabilities

475,226

463,656-11,570

Net assets

223,559

232,639

9,080

Retained earnings* Equity capital ratio 32.9% (+1.4pt)+8,805

Total liabilities and net
assets698,786

696,296-2,490Note: The “Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.” have been applied from the beginning of the current period, presenting
deferred tax assets under investments and other assets (non-current assets) and deferred tax liabilities under non-current liabilities. Figures for FY2018 havebeen restated after applying the partial amendments retroactively.

Interest-bearing debt

316,399* Interest-bearing debt: Loans payable + bonds + short-term bonds

315,331-1,068Loans payable
Short-term bonds-8,035+7,00012

Consolidated Statements of Cash Flows(Millions of yen)

1H FY2018
Results

1H FY2019
Results

ChangeMain factors of changes

Cash flows from operating
activities

6,607

17,225

10,618Decrease in notes and accounts receivabletrade+7,836
Decrease in inventories+1,887

Cash flows from investing
activities-11,559-17,000-5,440Decrease in income due to the saleof non-current assets-8,501

Cash flows from financing
activities

2,520-3,854-6,375Decrease in income due tolong-term loans payable
Increase in short-term bonds-13,457+6,000Net increase (decrease) in cash
and cash equivalents-2,432-3,629-1,197

Cash and cash equivalents at
beginning of current period

18,32420,300

1,976

Cash and cash equivalents at endof fiscal period

15,892

16,671779

13

FY2019

Forecasts

14

Consolidated Statement of Income (Performance Forecast)• Initial targets are expected to be achieved in all operating revenue, operating income, ordinary income, and profit attributable to owners of parent due to anincrease in revenue following the sale of land for business use in the real estate business and a review of costs, despite the expected impacts of natural
disasters.
• Impact of natural disasters: Operating revenue -JPY2.1 bn; operating income -JPY1.3 bn; profit attributable to owners of parent -JPY1.4 bn(Millions of yen)

FY2019 full-year New FY2019 fullforecasts
released in May year forecasts

Change(%)

ChangeFY2018 Results

Change(%)

ChangeOperating revenue

322,500

322,500−−

322,276223

0.1%

Operating income

30,00031,000

1,000

3.3%

31,458

-458

-1.5%

Ordinary income

28,00029,600

1,600

5.7%

29,630-30-0.1%Profit attributable to ownersof parent

20,00021,000

1,000

5.0%

22,712-1,712-7.5%

Capital expenditure

75,00063,200-11,800-15.7%

39,74523,45459.0%

Depreciation

20,70020,000

-700

-3.4%

19,113886

4.6%

EBITDA

50,70051,000300

0.6%50,571428

0.8%Interest-bearing debt

360,000

341,000-19,000-5.3%

316,399

24,600

7.8%

7.10

6.69

-0.41

−

6.26

0.43

−

6.71

6.35

-0.35

−

5.85

0.50

−

798

925

127

15.9%

854

71

8.4%

Interest expenses

2,516

2,402

-113

-4.5%

2,561

-158

-6.2%

Net interest expense-1,717-1,476240−-1,707230−

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

15

Segment Information (Performance Forecasts)(Major factors affecting forecasts: compared to forecast released in May)
• All businesses: Impact of natural disasters on operating revenue -JPY2.1 bn, on operating income -JPY1.3 bn
Breakdown of operating revenue: Transportation -JPY0.5 bn; retail distribution: -JPY0.7 bn; leisure & service -JPY0.8 bn
Breakdown of operating income: Transportation -JPY0.5 bn; retail distribution: -JPY0.1 bn; leisure & service -JPY0.6 bn• Transportation business: Review of expenses• Real estate business: Robust sales of land for business use and sales of high-end condominiums• Retail distribution: Difficulty in department store business(Millions of yen)

FY2019 full-year
forecasts releasedin MayNew FY2019 fullyear forecasts

Operating revenue

93,80092,700-1,10092,262

437

Operating income

9,700

9,800

100

9,180

619

Operating revenue

110,300

115,000

4,700

113,132

1,867

Operating income

14,70015,9001,200

15,316583

Retaildistribution

Operating revenue

101,400

99,600-1,800100,709-1,109Operating income

3,000

2,900

-100

2,845

54

Leisure andservice

Operating revenue

32,80031,400-1,40031,298101

Operating income

2,100

2,000

-100

4,877

-2,877

Operating revenue

1,900

1,900

−

1,824

75

Operating income

0

0

−

34

-34

Operating revenue-17,700-18,100-400-16,951-1,148Operating income

500

400

-100

-795

1,195

Transportation
Real estate

OthersAdjustments

FY2018 Results

ChangeChange(%)

16

Operating Results for Transportation(Performance Forecasts) Keihan Electric Railway

FY2019 full-year New FY2019 fullforecasts
released in May year forecasts

ChangeChange(%)

FY2018 Results

Change(%)

ChangeMillions of yen

Millions ofyenMillions ofyen%Millions ofyenMillions ofyen%

52,27051,853-417-0.8

51,82032

0.1

Non-commuter
passes35,60035,064-536-1.5

35,278-214-0.6Commuterpasses

16,67016,789119

0.7

16,541247

1.5

Thousands ofpeopleThousands ofpeopleThousands ofpeople%Thousands ofpeopleThousands ofpeople%295,667

294,281-1,386-0.5

294,409

-128

-0.0

Non-commuter
passes152,217

149,612-2,605-1.7

151,946-2,334-1.5

Commuterpasses

143,450

144,669

1,219

0.8

142,463

2,205

1.5

Passenger
transportation
revenue

Number ofpassengers

17Capital Expenditure by Segment(Performance Forecasts)(Millions of yen)
FY2019 full-year New FY2019 full-year
forecasts released inforecasts
May

ChangeFY2018 Results

ChangeCapital Expenditure

75,00063,200-11,800

39,74523,454

Transportation

18,20019,3001,100

14,952

4,347

Real estate

22,80020,300-2,50021,345-1,045Retail distribution

3,000

2,500

-500

1,188

1,312

Leisure and service

6,700

6,900

200

1,959

4,941

0

0

−

7

-7

24,30014,200-10,100

293

13,906

OthersEntire company

18

EBITDA by Segment (Performance Forecasts)(Millions of yen)
FY2019 full-year New FY2019 full-year
forecasts released inforecasts
May

ChangeFY2018 Results

Change50,70051,000300

50,571

428

Transportation

21,70021,800100

20,4691,330

Real estate

20,60021,200600

20,334865

Retail distribution

4,400

4,200

-200

4,171

28

Leisure and service

3,200

3,100

-100

6,040

-2,940

0

0

−

71

-71

800

700

-100

-515

1,215

EBITDA

OthersEntire company

19

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

20Overall structure of the long-term strategic concept
Keihan Group’s long-term strategic concept
Management vision“Be the beautiful Keihan areas andthe global Keihan group”
Long-term management strategy(Target year: 2027)
Main strategies

Medium-term management plan
“Create Living, Community, and Excitement”(FY2019–2021)

Redevelop
Keihan areas
Co-create
tourism opportunity
Create relatable
contents

FY2019–2021

Redevelop
Keihan areas
Co-create
tourism opportunity
Create relatable
contents

Until FY2027

Upgrade of Hirakatashi Station

Main development areas
Hirakatashi, Yodoyabashi, Kyobashi, Nakanoshima,
Temmabashi

Opening of THE THOUSAND KYOTO

Sanjo, Chushojima, Demachiyanagi

Opening of BIOSTYLE commercial complex (Shijo-Kawaramachi)21

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 throughurban revitalization with railway
stations at the core

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

Co-create
tourism opportunity

Create tourism opportunities withthe community and promote global
exchange

Strengthen tourism and inboundbusiness mainly in Kyoto

Create relatable
contents

Create products, services, andbusinesses that customers canrelate to

BIOSTYLE-Aim for Keihan as First Choice-Preparations for the management vision
Create area portfolios
Focus on business development in Kyoto andcontribute to the re-creation of Kyoto
Expand business to outside the areas along the
Keihan Railway lines (domestic and overseas growthmarkets)

Promote innovations with an eye to the next generation
Create services and improve productivity by utilizing
ICT technologies
Promote new businesses

22Quantitative targets of
the long-term management strategy

FY2019Forecast

FY2021Plan

JPY51.0 bn

JPY57.0 bn

JPY72.0 bn
or moreNet interest-bearing
debt / EBITDA multiple

6.35x

6x level

6x level

ROE

9.2％

8％
or more8％
or moreJPY31.0 bn

JPY33.5 bn

JPY43.0 bn
or moreManagement
indicators
EBITDA(Operating income + depreciation)

Operating income

FY2027
Target level23

Co-create
tourism opportunity

Capturing of inbound demand

Transportation business,
Passenger transportation revenue* Inbound revenue is on the right axis.

Leisure and Service business

130

20
Inbound revenue(Keihan Electric Railway)

Eizan Electric Railway

Keihan Electric Railway

Keifuku Electric Railroad* Operating revenue of the hotel (JPY100 million)
business is on the right axis.
400(JPY100 million)

250
Hotel business
Operating revenue

Aim for JPY2 billion
in FY2021

No. of inboundovernight guests

No. of visitors to
Kyoto Tower

120

15

200

300

110

10

150

200

100

5

100

100

0

50

90
FY2014FY2015FY2016FY2017FY2018FY2019(Forecast)

FY2021(Target)* FY2014 = 100

FY2015FY2016FY2017FY2018FY2019(Forecast)

FY2021(Target)0* FY2015 = 100

Trend of customers before and after the natural disasters that occurred in September 2018150

No. of non-commuter pass passengers at Fushimi-inari Station on
the Keihan Electric Railway
Sep 4 (Tue.)
Typhoon no. 21
Closure of
Kansai Airport

100

Hotel Keihan occupancy rate
110
100
90

50
0

Sep 21 (Fri.)
Full resumption of
Kansai Airport

Sep. 3(Mon.)

Sep. 4(Tue.)

京都グランデKyoto Grande
淀屋橋
Yodoyabashi
Sapporo札幌

80

Sep 30 (Sun.)
Typhoon no. 24

70Sep. 25(Tue.)* Sep. 3 (Mon.) before Typhoon no. 21 hit Kansai = 100

Oct. 16(Tue.)

Aug.

Sep.

Oct.

* Figures for October are preliminary.

Although we were affected by thenatural disasters, the passenger andoccupancy levels have recovered toroughly the level before the disasters.
Going forward, we will aim for further
growth by capturing inbound demand.

24

Co-create
tourism opportunity

Strengthen tourism andinbound business mainly in Kyoto

THE THOUSAND KYOTO
The Keihan Group’s flagship hotel, addressing the needs ofthe global market.
The hotel will fully open in January 2019 as the top-class
upper-upscale hotel of the Group.
The hotel will offer a comfortable Kyoto stay and a new Kyoto
experience based on its concept of “a personal comfort hotel”
that is unprecedented in Kyoto.
Outline of the hotel
Opening date:
January 29 (Tue.), 2019
Access:2 minutes on foot from JR Kyoto Station
No. of floors:
9 floors above ground, 1 floor below ground(Connects to Kyoto Century Hotel on B1F–3F)
No. of guest rooms: 222 on floors 3 to 9
Facilities:
Banquet hall, food and beverage facilities,
chapel, bridal salon, spa, gym, parking lot
Spa suite

Providing new “tourism and attraction experience”
content
We will launch OKUTRIP KYOTO, an
initiative providing experience of the “depthof Kyoto,” targeting experience-oriented
travelers.

• “Experience program” for overnight guests
Offers a charter service using Hiei, asightseeing car on the Eizan Electric
Railway, as well as plans that
accommodate guests’ requests• The “appeal of food” offered by restaurants
Restaurants offer experiences throughfood.

Garden suite25

Co-create
tourism opportunity

Strengthen tourism andinbound business mainly in Kyoto

Attracting more inbound demand and developing readiness
Introduction of an electronic payment service

Enhancement of the Sightseeing Pass
• Sightseeing Pass, Keihan Electric
Railway’s special pass for inboundtourists
Since its launch in August 2015, its
sales have grown steadily.

600
500
400
300
200
100
0

Sales performance

FY20 16

FT20 17

FY20 18* FY2016 = 100• In June 2018, we launched expanded
versions for the Eizan Electric Railway(Kurama, Kibune) and Hirakata Park.
• Sales to local agents abroad areincreasing.

Offering of Wi-Fi• A free Wi-Fi service has been introduced in all cars of the8000 and 3000 series on the Keihan Railway lines.

Improved convenience
Investment in Sky Hop Bus Marketing Japan
We have established a new company that plans andoperates a hop-on-hop-off, cruise-type sightseeing bus inorder to provide a convenient means of transport for theincreasing numbers of inbound individual tourists.

• Electronic payment services Alipay and WeChat Pay havebeen introduced in all hotels of the Hotel Keihan chain as well
as Keihan Department Stores, Osaka Aqua Bus and Keihan
Bus (regular sightseeing buses). Going forward, the services
will be introduced in more hotels and leisure and commercial
facilities.

Providing multilingual announcements• We have started offering in-car and station announcements
in four languages (Japanese, English, Chinese and Korean)on the Keihan Electric Railway lines.

Proposal of sightseeing routes• We started distributing the English version
of Keihan My Route Kyoto, which
presents the attractions of the areas
around Keihan Railway stations in shortand specific sightseeing route maps, inNovember.
• Established: June 14• Start of service (Kyoto): March 2019 (planned)• Investments from Keihan Bus Co., Ltd., Hinomaru
Jidousya Kougyo Co. Ltd. and JTB Corp.
The bus will improve convenience by enhancing
the traffic network within Kyoto City and contributeto the alleviation of traffic congestion in the city.

26Redevelop
Keihan areas

Community building starting fromrailway stations

Upgrade of Hirakatashi Station
Toward a station that people always want to use
and want to visit once
As the first step of community building starting fromrailway stations, the Hirakatashi Station is upgrading
ahead of the redevelopment of the area around thestation.
In partnership with Ryohin Keikaku Co., Ltd., the station
will be renewed into a station that befits the face of acore city, considering the concourse of the central exit
area on the second floor of the station and commercial
facilities as an integral space.
(To be fully opened in December 2018)
Starting with Hirakatashi Station, we will build uniquecommunities around stations on the Keihan Railway lines.

Concourse of Hiratakashi Station (image)

Redevelopment of the area around Hirakatashi Station
Development of the area next to the station(delta land) as a leading project ofredevelopment of station areas
Delta land

Block③Block②
Target district

Delta land (image)<Progress>

Block①

Block④Block⑤A partial rework of the Blocks Considered for Hirakatashi
Station Area Redevelopment (Hirakata City)• October 2016
Keihan Holdings Co., Ltd., Hirakata City and SO-TWO Inc. signed anagreement for prompt implementation of the redevelopment of theareas around Hirakatashi Station based on tripartite collaboration.
• August 2017
The Kita-kawachi Prefectural Residents’ Center and the Kitaosaka
Chamber of Commerce & Industry announced their relocation to thedelta land. For a prompt decision on urban planning, considerations ofa redevelopment plan to build a complex that will contain businesses,
offices, housing, administrative functions and so forth have begun.
• February 2018
Keihan Holdings Co., Ltd. submitted to Hirakata City a community
building plan for the entire area around the station.
Consultations are under way with related parties for promoting
the redevelopment of block , which includes the delta land.

27

Redevelop
Keihan areas

Regain the glory of Osaka’s east to west axis
To Kyoto

Yodoyabashi• One of the largest office districts in Osaka, and a hub between thenorth to south axis, Midosuji, and the east to west axis.
Oebashi Station, Keihan Electric Railway
Midosuji is an area where
offices are being rebuilt andBank of Japan
hotels are opening due to the
Osaka City Hall
relaxation of height restrictions.
Yodoyabashi Station,
Keihan Electric Railway• The concept by Osaka City andother parties considers
re-organizing the street spacein Midosuji with the aim of making
Yodoyabashi
it “the world’s latest model of a
Station, Osaka
human-first street.”
Metro Midosuji
Keihan Yodoyabashi
Line
Building⇒ We are planning to rebuild the
Keihan Midosuji Building and
Keihan Midosuji Building
develop the site.

Kita

Promote urban
development based on
stations and seek toincrease the numbers ofresidents and visitors in
the areas along the
Keihan Railway lines.

Kyobashi
Yodoyabashi Temmabashi
Nakanoshima
Osaka Castle

USJ

MinamiYumeshima

Nakanoshima• The 4-chome district, which includes the candidate site for the future
medicine international hub concept of Osaka City
• Connects to the Keihan Nakanoshima Line due to the opening of the
Naniwasuji Line in 2031 (planned), and will be revitalized as a traffic hub.
⇒ Based on the above concepts, promote the revitalization of the area,
including the utilization of the company’s land.

Kyobashi

Kyobashi
Station,KeihanElectric
Railway

Keihan Kyobashi
Station Building

JR Kyobashi Station

Osaka Business Park
Osaka Castle

Osaka Metro
Nagahori Tsurumi
Ryokuchi Line

* Major urban development projects in the same area:• The largest terminal of the Keihan Railway
lines. (Approx. 180,000 passengers per day,
470,000 in total for the Kyobashi area (incl.
JR and Osaka Metro))• Summer 2017
The area around Kyobashi Station was
designated as a Special Urgent Urban
Renaissance Area* on an expanded basis.
⇒ In January 2018, we established the
Kyobashi Project Preparation Office, adepartment dedicated to the project. With
the revitalization plan of the stationbuilding as a trigger, we will aim to create
a community with improved circulation ofpeople in the community, including thesurrounding areas.

Candidate site for the future medicine
international base
Approx. 8,600 m2

Private land area that includes
the Company’s landShin-Osaka
StationSocial/academia co-creation,industry/academia co-creation, art base

* Renovate and strengthen the functions of the existing
Nakanoshima Center

Dojima River

Keihan Nakanoshima Line
Nakanoshima
Center(Tentative name) Osaka City
New Museum
Scheduled for opening in
FY2022

Keihan Electric
Railway

Kitaumeda Station

Nakanoshima

Nakanoshima
StationNishihonmachi
Station<4-chome, Nakanoshima, Kita-ku, Osaka>
A partial reworking of “Basic Plan for
the Future Medicine International Base (Draft)”(Osaka City)

Naniwasuji Line (scheduled for opening in spring 2031)
Improves access to Kansai Int’l Airport and Shin-Osaka

JR Nanba Station

Nankai Shin-Nanba Station

To Kansai International Airport

28

Create relatable
contents

BIOSTYLE commercial complex

Contents offered by BIOSTYLE commercial complex
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.
A new commercial complex that proposes BIOSTYLE with food,beauty and accommodation will open in Shijo-Kawaramachi,
Kyoto City.

STAY Zone (4–9F)• A space that features natural materials
where guests can feel the warmth ofnature and people• A link between food and beauty offeredby BIOSTYLE
Guest room (image)

BEAUTY Zone (3F)

Facility outline

Facility (image)• Proposes “prevention,” which fosters amind and body that enable women to live
in beauty and health• Offers internally developed organic
cosmetics, which are sold as merchandise
and in the salon zone

Developed products (image)• Address: Inaricho, (Kawaramachi-dori Shijo-sagaru),Shimogyo-ku, Kyoto City
• Scheduled opening: Autumn 2019
• Total floor area: 27,337 m2• Building size: 9 floors above ground• No. of guest rooms: Approx. 140
To Demachiyanagi

EAT Zone (1F)• Expresses the world of food proposed by BIOSTYLE in a marché
style. The attached kitchen provides a bustling atmosphere.
• A restaurant area where BIOSTYLE’s food can be experienced
while enjoying conversations with the chef.

Hankyu Kawaramachi Station
Shijo-doriTakase River

Planned site

Kawaramachi-doriTakashimaya, Kyoto store

Kyoto
Marui

STAY

EAT Zone (2F)

BEAUTY• A high-quality restaurant zone offering
unique foods created from the world
views of creative chefs.

Kamo
River

The Kyoto
Residence
To Yodoyabashi,
Nakanoshima

EAT

Marché restaurant (image)29

Initiatives in the transportation business
Creating demand by providing new experience value
Keihan Electric Railway Enhancing reserved-seat Premium Cars and Liner trains
August 2017
◆ Introduced Premium
Cars in the 8000 series• No. of cars: 10 (remodeled)• No. of seats: 40• No. of trains operated:
95 on weekdays
113 on weekends & holidays

September 2018
◆ Increased runs of Premium
Cars and Liner trains• Increased runs of Premium Cars
(105 on weekdays; 118 on
weekends & holidays) andoperating hours• Increased runs of Liner trains to a
total of five runs on weekday
mornings and nights, with theoperation section expanded to
Kyoto◆ Introduced Liner trains

FY2021◆ Introduce Premium Cars in
the 3000 series
The number of Premium Cars operated will be
increased by combining with the 8000 series
Premium Cars that have already been introduced.
During the daytime, all special express trains will have a Premium Car,in principle.
A more comfortable and convenient transport experience will beoffered.
• No. of cars: 6 (newly built)• No. of seats: 40• Seats on all cars are forreservation only.
• Two Liner trains run in thecommuting hours on
weekday mornings.

Developing an environment toward a smart traffic network◆ Share bicycle PiPPA• Jointly offered by Keihan Electric Railway Co., Ltd.,
Daiwa House Parking Co., Ltd. and Ocean Blue
Smart Co., Ltd.
• Launched in June 2018

We launched a share bicycle service in Kyoto City, which can bereserved and paid for with a smartphone and is convenient for
short-time use. PiPPA has become the largest share bicycle
service in Kyoto City, alleviating traffic congestion in the city.

30

Initiatives in the real estate business
Expand business in and outside areas along the Keihan Railway lines throughdeveloping and utilizing diverse properties
Launch of the “Machinaka Home” business
The business will regenerate unused real estate to urban-type
residence in high-density urban districts in the areas along the
Keihan Railway lines that have reached renewal period.
We seek to expand earning opportunities by diversifying
development menus and contents, and utilizing various real estate.
• Business started in July 2018
• Construction by Zero Corporation Co.,Ltd.
• Proposes housing development in theurban areas along the Keihan
Machinaka Home Moriguchi Obacho Railway lines (between Kyobashi and(image of completion)
Moriguchi/Kadoma)

New entry into the parking lot businessWe have launched a parking lot business using real estate andfacilities owned by the Keihan Group.
We also aim to operate facilities outside the Group in the future.
• Launch: April 2018
• Name: Keihan Parking• Facilities in operation: Nakanoshima, OMM, Hashimoto Station,
Fushimi Ryogaemachi• Capacity of cars: 957 (total of four locations)
In addition, we have been commissioned with the operation of theparking lot of Osaka Prefectural EXPO ’70 Commemorative Park, inwhich the Keihan Group participates as a designated manager.

Expansion of overseas businessWe will expand our business to the ASEAN 5, where high economic growthis expected, in order to expand the business areas of the Keihan Group.
Philippines Participation in an officedevelopment business• Scheduled completion: December 2019
• Location: Makati, Manila Metropolitan
Area, Philippines• Site area: Approx. 3,166 m2• Building size: 35 floors above ground, 5
floors below ground
Thailand Condominium sale business• Scheduled completion: April 2020
• Location: Watthana District, Bangkok,
Thailand• Site area: Approx. 2,020 m2• Building size: 31 floors above ground• No. of housing units for sale: 220
Indonesia Detached house development
business• Scheduled completion: February 2021
• Location: Bekasi, West Java, Indonesia• Site area: Approx. 27,965 m2• No. of housing units for sale: 111

31

Initiatives in the real estate business
Main condominiums to be sold in the term ended March 31, 2019 and thereafter
Name of property, location

No. ofhousing units◆ Introduction of a hotel concierge
service in a condominium in Kyoto City
Kyoto Hotel Okura’s concierge service will be
introduced in The Kyoto Residence Gosho East,adjacent to Kyoto Gyoen National Garden.

Scheduled delivery in FY2019
The Fine Tower Umeda Toyosaki*(Kita-ku, Osaka City)

312*

Kitahama Mid Tower*(Chuo-ku, Osaka City)

311*

Center Marks Tower*(Higashi-ku, Fukuoka City)

283*

Fine City Sapporo The North Gate

(Kita-ku, Sapporo City)

66

Fine City Nishinomiya Koshien*(Nishinomiya City)

135*

Sapporo Kita-ku Project(Kita-ku, Sapporo City)

39(Tentative name) Shin-Osaka & Awaji Mirai
Kaika Project*(Higashi-Yodogawa-ku,
Osaka City)

138*

Scheduled delivery in FY2020• Location: Kamigyo-ku, Kyoto City
• No. of housing units sold: 44• Scheduled delivery: FY2020• The highest average selling tsubo unit price inKyoto City

Fine City Sapporo The North Gate

Scheduled delivery in FY2021
Koshigaya City Project(Koshigaya City, Saitama)

178(Amagasaki City)

293*

Yamato City Project*(Yamato City, Kanagawa)

604*

Sapporo Nishi-ku Project*(Nishi-ku, Sapporo City)

72*

Osaka Nishi-ku Kitahorie Project(Nishi-ku, Osaka City)

141

Amagasaki City Nagasu Project** 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.

Fine City Nishinomiya Koshien

32

Initiatives in the retail distribution business
Improving the value of stores and providing commercial contents that contribute to
the main strategies
Expanding PM business contracts◆ Upgrade of Racto Yamashina Shopping Center

Upgrading commercial facilities◆ Opening of MUJI Keihan Hirakata Store

The second floor of Keihan Department Hirakata Store in
We aim to revitalize the Yamashina area by attracting
front of the central ticket gate of Hirakatashi Station was
specialty stores with a large draw to the site of the former
fully renovated to accommodate MUJI Keihin Hirakata.
Daimaru Yamashina store, and renewing them into a new• Opening date: May 17
commercial facility.
• Scheduled opening after• Sales floor area: Approx. 1,460 m2
upgrade: November 2019• Operator: Keihan Department• Nearest station:
Stores Co., Ltd. (licensed store contract)
Keihan Yamashina Station,◆ Upgrade of Keihan City Mall
Keihan Electric Railway
Food and merchandise zones will be enhanced and a
Keishin Linechildren’s large specialty store will be introduced.
Yamashina Station, JR and• Scheduled opening after upgrade: Spring 2019
Kyoto municipal subway• Upgraded floors: B1F–2F• Lease area: Approx. 1,638 tsubo• Nearest station: Temmabashi Station,
B1F–2F
Keihan Electric Railway and Osaka Metro Tanimachi Line
Expanding the Ekinaka (in-station) businessoutside the areas along the Keihan Railway lines◆ Acceleration of openings of SWEETS BOX in the
Kanto region

Three limited-period sweets specialty stores have opened in
Kanto and two are planned in November.

◆ Increase in the opening of MUJIcom

Under a business partnership with Ryohin Keikaku Co., Ltd.,MUJI stores have opened in stations and on the undergroundfloors of stations. The fourth, DIAMOR Osaka store, opened in
October.

◆ Upgrade of Frest Matsui Yamate StoreWe will make efforts to improve profitability as the top store in
the region.
• Opening after upgrade:November 2018
• Nearest station:
JR Matsui-Yamate Station• Start of business: 1999
(Upgraded in 2006)

33

Initiatives of the Leisure and Service businessPlay a central role in the co-create tourism opportunity and achieve further growth byaccelerating hotel openings
Increasing openings of Hotel Keihan

Venturing into new business formats

The hotel has opened mainly in locations in front of stations of major
government-designated cities. Three hotels will open in FY2019 and two
in spring 2020.
Opening in FY2019

Scheduled for opening in spring 2020

Kyoto Hachijoguchi
Equipped with a large bath, atourist information corner, andparking space for large buses

Kyoto Station South(tentative name)• Opening date: December 1• No. of guest rooms: 234• 8 minutes on foot from JR Kyoto
StationTsukiji Ginza Grande
An accommodation-focused
lifestyle hotel• Opening date: December 14• No. of guest rooms: 297• 2 minutes on foot from Tokyo
Metro Tsukiji Station• Scheduled opening: Spring 2020
• No. of guest rooms: 200 (planned)• 1 minute on foot from JR Kyoto
Station

Nagoya Sakae(tentative name)• Scheduled opening : Spring 2020
• No. of guest rooms: 259 (planned)• 3 minutes on foot from Nagoya
Municipal Subway Marunouchi
Station• Opening date: July 2, 2018
• Address: 173 Shingokencho (Yamatoojidori Sanjo-sagaru),Kyoto City
• Directly connected to Keihan Sanjo
Station• No. of guest rooms: 21 (no. of beds: 65)

No. of guest rooms of the hotel business
5,000

Keihan Stays
Keihan Hotels & Resorts
Hotel Keihan

4,000
3,000

Tokyo Yotsuya
Renovation of the former Mitsui
Garden Hotel Yotsuya• Opening date: December 21• No. of guest rooms: 121• 3 minutes on foot from JR Yotsuya
StationWe opened “CAFETEL Kyoto Sanjo for Ladies,” a newformat targeting women, in an effort to address
diversifying accommodation needs.

Aim for 5,200 rooms
in FY2021

2,000
1,000
0
Kyoto Station South(image)Nagoya Sakae (image)

FY2018FY2019FY2021(Target)34

Encouraging the use of technologies such IoT and AI
Proof testing in the bus businessKeihan Bus self-driving• In June 2018, we entered into the Agreement on the
Research of Next-Generation Mobility (Self-Driving
Technology) with Otsu City for practical use by local buses.
• Going forward, we will aim for future practicaluse by establishing an industry/government/
academia study group for community building
using self-driving technology and by
conducting self-driving proof tests in Otsu City.

Sightseeing buses using ICT
Proof tests of sightseeing buses using
communication robots and informationsharing systems.
In the future, we will consider offering tourism
information for inbound tourists.
• Participating companies: Keihan Bus Co.,
Ltd., NTT West
• Place of implementation: Kansai Science
City

Initiatives in the hotel business
Introduction of automatedcheck-in/out machines• Aimed at easing congestion during
peak hours and a low-cost
operation• Supports multiple languages
Visualization of congestion in restaurants
and laundry areas• We introduced a service that can check thecongestion and usage status of restaurants andlaundry areas through the VOD system in theguest rooms.
Trip AI concierge• We introduced an AI concierge that provides
automated replies to guests’ inquiries on thewebsite.
• Inquiries can be made in chats, which areresponded to by AI 24 hours.

Ultra-small smart mobility
Intended to be used as a new means of transport in whichanyone can travel the “last one mile” from stations or parking
lots to their destination easily at tourist destinations, etc.
• Participating companies: Keihan Bus
Co., Ltd., tmsuk co., ltd., NTT DOCOMO, INC.
• Place of implementation: Arashiyama

We seek to enhance service functions and improve
convenience by using IoT and AI technologies.

35

Initiatives in ESG
The Keihan Group will contribute to the achievement of the SDGs and sustainable aim forcontinuous growth in harmony with society by creating products, services and businesses
that contribute to solving social issues mainly through BIOSTYLE and strengthening
business activities in consideration of the environment, society and governance.

E (Environment)

S (Society)

G (Governance)

Contribution to global warming prevention

Provision of value trusted by customers suchas “safety and security”• Initiatives of Keihan Railway to improve safety

Enhancing governance system• We have decided to be a company with anaudit and supervisory committee since
FY2018.
• Selecting five out of thirteen directors fromoutside of the company.

In FY2019 we have been making upgrades the ATS
system into a multi-information continuous control ATS
system and continuously carried out drills against
disasters and accidents.
Introduction of low-environmentalload ships
Operation of environmental
learning cruise ships

Introduction of energy-saving railroad
car

Contribution to sustainable development oflocal communities

Shareholders’ meeting
Appointment & dismissal
Consultation

Nomination &Compensation RecommenAdvisory
dationCommittee
3 directors(including 2 outside
directors)

ReportStatement of
Opinions,etc.

Appointment & dismissal
Audit & supervision

5 directors serving as audit &supervisory committee members(including 3 outside directors)

13 directors (including 5 outside directors)

Supervision

Appointment& dismissal

Representative
director,
CEO & COO

Report Report

Audit
Accounting
audit

Directors meeting

Keihan GroupCSR Committee
ReportPromotion of environmental
management systems• Promoting active employment of people withdisabilities

We promote the acquisition of environmental
management certificates such as ISO 14001
and KES.

• Approach toward a healthy company

Established Keihan Smile Heart Co., Ltd. in 2017
Announced “Health Declaration” in 2018

Technical committee on
information Security•

We aim to increase the number of women in aleadership position such as management by more than
50% by the end of FY2021 (compared to FY2016).

Technical committee on
environmental management

THE THOUSAND KYOTO
promotes energy-saving throughgreening on the building, utilizing
photovoltaic power generation andwell water.

Development of the environment and acorporate culture encouraging employees toexercise their strengths• Promoting women’s empowerment

Technical committee oncompliance and crisis/riskmanagement

Keihan Yodo Logistics Yard equippedwith photovoltaic power generation

Internal Control Committee

Penetration of ZEH

Boosting waterway transportation
on Yodogawa River

Establishment of internal control systems

The Lake Biwa Canal restoration
project

Cooperation

Audit & Internal
Control Office

Accounting auditor

Management
Meeting

Appointment& dismissal

Audit Supervisory Committee Cooperation

Board of Directors

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• Providing education and training for
employees

36