FY2014(Fiscal year ended March 31, 2014)

Financial Results Presentation

May 16, 2014
Keihan Electric Railway Co., Ltd.
(Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan.co.jp/)[Notes on forecasts]
Descriptions of business forecasts and future prospects are based on current information and certain
assumptions about factors that may affect future business. The actual results of operating
performance may differ from these forecasts.

Overview of FY2014
Financial Results

Consolidated Statements of Income(Millions of yen)

FY2013Results

FY2014
Results

Operating revenue

279,156

289,203

10,047

Operating income

23,28925,085

1,795

21,457

2,524

Ordinary income

18,933

Change(3.6%)(7.7%)(13.3%)

3,342

Main factors of changes

Oct 2013
Estimate

Transportation +333, Real estate +9,230, Retail -797,
Leisure and service +1,342, Others +149

280,500

Transportation +530, Real estate +635, Retail +393,
Leisure and service +262, Others +31

21,100Non-operating income +223
(Dividends income +70, Miscellaneous income +155)
Non-operating expenses -504
(Interest expenses -492)

17,700Extraordinary income +814
(Gain on sales of investments securities +625,
Contribution for construction +145)
Extraordinary loss -593 (Impairment loss -690)

11,300Net income

11,077

14,420

ROA

3.6%

3.8%

0.2pt

ROA: Operating income to total assets

－

ROE

7.4%

8.9%

1.5pt

ROE: Net income to shareholders' equity－

EBITDA

40,361

41,688

1,327

EBITDA: Operating income + Depreciation

Depreciation

17,071

16,603

Capitalexpenditures

19,977

31,179(30.2%)(3.3%)-467

37,70016,600(-2.7%)

11,201

32,000(56.1%)[Changes in scope of consolidation and application of the equity method (from the previous fiscal year end)]
Consolidated subsidiaries: 37 companies (No change)
Equity method affiliates: 2 companies (No change)2Consolidated Balance Sheets(Millions of yen)

FY2013Results

FY2014
Results

ChangeCurrent assets

134,596

147,216

12,620Land and buildings for sale
Cash and deposit+7,310+3,028Fixed assets

518,866

523,965

5,099

Buildings and structures
Land+8,572-3,423

653,462

671,182

17,719Current liabilities

176,940

179,858

2,918

Accounts payable+3,032Long-term liabilities

318,400

321,459

3,059

Net defined benefit liability
Provision for retirement benefits+19,121-14,558

495,340

501,318

5,977

Total assets

Total liabilities
Net assets

158,121

169,864

11,742

Total liabilities and net assets

653,462

671,182

17,719Interest-bearing debt at endof fiscal period

327,880

321,044-6,836

Interest-bearing debt /EBITDA multiple (Times)

8.1

7.7

-0.4

Main factors of changes

Retained earnings+10,442
Valuation difference on available-for-sale securities +2,542
Remeasurements of defined benefit plans-2,501* Equity capital ratio 24.9% (+1.1pt)

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

3-2,808-2,651-1,000-376

Consolidated Statements of Cash Flows(Millions of yen)

FY2013Results

Operating cash flows

43,901FY2014
Results

Change29,573-14,328

Income before income taxes
Change in inventories
Change in notes and accounts receivable

Change in proceeds from sales of fixed assets+6,417
Change in proceeds from sales of investment securities+2,491
Change in purchase of fixed assets-5,010Investing cash flows-28,489-15,132

13,356

Financing cash flows-11,941-11,412529

Net increase (decrease) in cash andcash equivalents

3,470

3,028

-441

Increase in cash and cash equivalentsfrom newly consolidated subsidiary

204

－

-204

22,802

25,831

3,028

Cash and cash equivalents
at end of fiscal period

4Main factors of changes+3,931-9,980-6,857

Segment Information(Millions of yen)

FY2013Results

FY2014
Results

Change (%)

ChangeOct 2013
Estimate

Operating revenue

279,156

289,203

10,047

3.6%

280,500

Transportation

89,32889,661333

0.4%

88,800Real estate

78,94888,179

9,230

11.7%

81,100Retail

96,224

95,427

-797

-0.8%

95,000

Leisure and service

26,081

27,423

1,342

5.1%

26,700

Others

1,487

1,637

149

10.0%

1,600

Elimination-12,914-13,125-211－-12,700

Operating income

23,28925,085

1,795

7.7%

21,100Transportation

6,398

6,928

530

8.3%

5,800

Real estate

13,936

14,571635

4.6%

12,600Retail

2,052

2,445

393

19.2%

1,900

Leisure and service

890

1,153

262

29.5%

800

Others

-31

-0

31

－

0

Elimination

43

-13

-57

－

0

Note: Effective from FY2014, Keihan Engineering Service Co., Ltd. has been transferred from the transportation segment to the real estate segment due to a change insegment classification. Figures for FY2013 (ended March 2013) have been adjusted to reflect this change in segment classification in order to facilitate comparison.

5

Segment Information (Breakdown)[Consolidated subsidiaries] 38 companies(Keihan Electric Railway covers both the transportation business and the real estate business)
Transportation[Equity method affiliates] 2 companies

Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd., and 12 other companies

Real estate

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

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

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

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

Others¥1.6 billion(0.5%)

Others¥ -0 billion(-0.0%)

Leisure andservice¥27.4 billion(9.1%)

Retail¥95.4 billion(31.6%)

Leisure andservice¥1.1 billion(4.6%)

Transportation¥89.6 billion(29.6%)

Retail¥2.4 billion (9.7%)

Real estate¥88.1 billion(29.2%)

Real estate¥14.5 billion(58.1%)

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

6

Transportation¥6.9 billion(27.6%)

Results of Transportation(Millions of yen)
FY2013Results

FY2014
Results

ChangeChange(%)

Oct 2013
Estimate

Main factors of changes

Operating revenue

89,32889,661333

0.4%

RailwayBus
Elimination

72,281
26,327-8,947(+344)(+133)(-144)

88,800Operating income

6,398

6,928

530

8.3%

Railway
Bus

6,406
458

(+307)(+218)

5,800

Depreciation

11,01010,445

-564

-5.1%

－

Capital expenditures

12,612

10,590-2,022-16.0%－<< Operating results for transportation (Keihan Electric Railway) >>Passenger transportation revenue(Millions of yen)

Number of passengers(Thousands of people)
FY2013Results

FY2014
Results

ChangeChange (%)

FY2013Results

FY2014
Results

ChangeChange (%)

Non-commuter
passes144,753

144,758

5

0.0%

33,63733,565-72-0.2%

Commuter passes

133,805

136,060

2,255

1.7%

15,65415,859204

1.3%

278,558

280,819

2,260

0.8%

49,292

49,424

131

0.3%

Total

7

Results of Real Estate(Millions of yen)
FY2013Results

FY2014
Results

ChangeChange (%)

Oct 2013
Estimate

Operating revenue

78,94888,179

9,230

11.7%

Real estate
Construction
Elimination

69,708 (+5,125)
23,059 (+2,212)-4,588 (+1,892)

81,100Operating income

13,936

14,571635

4.6%

Real estate
Construction

13,969687

12,600Depreciation

3,847

3,812

-34

-0.9%

Capital expenditures

4,772

17,284

12,511

262.2%

Main factors of changes(+822)(+261)－FY2014：Second-stage construction of
KUZUHA MALL, etc－<<Results by business>>(Millions of yen)

Operating revenue
FY2013Results

FY2014
Results

Operating income

ChangeChange (%)

FY2013Results

FY2014
Results

ChangeChange (%)

Real estate sales

46,10751,333

5,226

11.3%

5,298

6,549

1,251

23.6%

Real estate leasing service

16,263

16,129

-134

-0.8%

8,028

7,303

-725

-9.0%

Real estate management

2,211

2,245

33

1.5%

-180

116

296

－

64,58369,708

5,125

7.9%

13,146

13,969

822

6.3%

Total

<<Main condominium buildings for sale>>
Name

Sales amount Number of(Millions of yen) units sold

Location

Fine Quarter City

7,718

262

Kita-ku, Osaka-shi

Dojima the Residence Mark Tower

6,621

269

Kita-ku, Osaka-shi

Fine City osaka-jo koen

6,008

191

Chuo-ku, Osaka-shi

Fine Flats Naramachi Sanjo

2,857

80

Nara-shi, Nara

A-standared Hongo Sanchome

2,436

56

Bunkyo-ku, Tokyo

8

Results of Retail(Millions of yen)

FY2013Results

Operating revenue

96,224FY2014
Results

Change95,427-797

Oct 2013
Estimate

Change (%)

Main factors of changes-0.8%

Department store
55,366
Store
25,964
Shopping mall management 10,893
Restaurant
6,320(+366)(-636)(-119)(-86)

95,000Department store
Store
Shopping mall management
Restaurant(-38)(+424)
(-72)
(+80)

1,900

551
857
941
79

Operating income

2,052

2,445

393

19.2%

Depreciation

1,250

1,273

23

1.9%

－

Capital expenditures

1,015

1,891

875

86.2%

－

<< Major New Stores>>
Name

Opening date

Location

KUZUHA MALL (Renewal Opening)

March 12, 2014

Hirakata-shi, Osaka

FREST petit Kuzuha StoreMarch 12, 2014

Hirakata-shi, Osaka

An3 KUZUHA MALL StoreMarch 12, 2014

Hirakata-shi, Osaka

Plug-in Drug Kuzuha StoreMarch 12, 2014

Hirakata-shi, Osaka

SWEETS BOX Keihan Kuzuha StoreMarch 12, 2014

Hirakata-shi, Osaka

UNIQLO Kintetsu Uehommachi Sta. Store

February 25, 2014

Tennoji-ku, Osaka-shi

SWEETS BOX ekimo Namba Store

October 31, 2013

Chuo-ku, Osaka-shi

SWEETS BOX SEIBU SHINJUKU PePe Store

September 26, 2013

Shinjuku-ku, Tokyo

Juicer Bar Tokyu Minami-machida Store

April 10, 2013

Juicer Bar Tokyu Nagatsuta Store

April 10, 2013<< Sales of Department Store >>
Store

Sales
amountChangeMoriguchiStore24,60089

Machida-shi, Tokyo

Kuzuha Store

10,36829

Midori-ku, Yokohama-shi

Kyobashi Store

7,350

17

Hirakata Store

7,072

70

Suminodo
Store

5,373

167

600
55,366<< Main Stores Closed>>
Name

Closing date

Location

Hakodate Ichiba Gojo Store

February 28, 2014

Ukyo-ku, Kyoto-shi

Ashikari Kyoto Yodobashi Store

February 11, 2014

Shimogyo-ku, Kyoto-shi

Hakodate Ichiba Katsura Store

July 28, 2013

Nishikyo-ku, Kyoto-shi

FREST Komagawa Store

June 30, 2013

Higashisumiyoshi-ku, Osakashi

Keihan The Store Makino Store

January 31, 2013

Hirakata-shi, Osaka<< Sales of Store >>(Millions of yen)

(Millions of yen)

Miscellaneous
revenue
Total

9

Sales
amountChangeStore

11,293-490

Convenience
store

5,572

-83

Kiosk

662

-53

Stationbusiness

7,192

-203

-7

Miscellaneous
revenue

1,242

194

366

Total

25,964-636

Division

Results of Leisure and Service(Millions of yen)

FY2013Results

FY2014
Results

ChangeChange (%)

Main factors of changes

Oct 2013
Estimate

Operating revenue

26,081

27,423

1,342

5.1%

Hotel
Leisure23,058 (+1,538)
4,529(-190)

Operating income

890

1,153

262

29.5%

Hotel
Leisure1,291
81

Depreciation

963

1,070

107

11.2%

－

1,639

1,622

-16

-1.0%

－

Capital expenditures<< Hotel occupancy rates >>FY2013Results

KyobashiTemmabashi
Kyoto
Hotel
Universal City
KeihanUniversal Tower
Asakusa
SapporoBiwako Hotel
Kyoto Tower Hotel
Kyoto
Kyoto Dai-ni Tower Hotel
Tower
Kyoto Tower Hotel Annex
Kyoto Century Hotel
Total

89.3%
82.5%
97.2%
82.9%
83.9%
95.6%
94.5%
83.2%
91.7%
83.2%
95.8%
90.5%
－

FY2014
Results
89.7%
93.8%
98.3%
83.4%
90.0%
96.3%
96.8%
82.8%
85.9%
89.4%
94.8%
90.5%
－

10

Change0.4pt
11.3pt
1.1pt
0.5pt
6.1pt
0.7pt
2.3pt
-0.4pt-5.8pt6.2pt-1.0pt0.0pt－

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

(+412)(-150)

26,700800

Non-consolidated Statements of Income(Millions of yen)

FY2013Results

FY2014
Results

ChangeChange(%)

Operating revenue

86,25485,996

-258

-0.3%

Railway

52,55852,721163

0.3% Number of passengers

Subsidiary business
Real estate sales

33,69633,275

-421

-1.3%

16,437

16,272

14,896

14,766

2,362

2,236

15,544
6,326
9,218
2,343
7,202
-327

15,000
6,525
8,475
2,236
6,465
-227

-165
-130
-126
-544
198
-742
-106
-736
100

-1.0%
-0.9%
-5.3%
-3.5%
3.1%
-8.1%
-4.5%
-10.2%－

Real estate leasing service
LeisureOperating income
Railway
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOrdinary income

Net income

12,609

7,687

12,838

9,082

229

1,394

11

Main factors of changes

Passenger transportation revenue

1.8%

18.1%

Non-operating income(Dividends income +301)
Miscellaneous expenses(Interest expenses -435)

+0.8%
+0.3%

+353
-421

Extraordinary income+848(Gain on sales of investments securities +612,
Contribution for construction +136)
Extraordinary loss
-377
(Impairment loss -464,
Reduction entry of land contribution for construction +104)

FY2015 Forecasts

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

FY2014
Results

FY2015
Forecast

Operating revenue

289,203285,200-4,003-1.4%

Transportation -1,561, Real estate -6,079, Retail +4,272,
Leisure and service +576

Operating income

25,085

22,100-2,985-11.9%

Transportation -1,528, Real estate -2,471, Retail +354,
Leisure and service +646

Ordinary income

21,457

18,600-2,857-13.3%

Non-operating income -78, Miscellaneous expenses -206

Net income

14,42012,800-1,620-11.2%

Extraordinary income +18,082, Extraordinary loss +17,999

Capital expenditure

31,17924,700-6,479of capital expenditure]-20.8% [Breakdown
Transportation

ChangeChange(%)

Depreciation

16,603

17,300696

4.2%

EBITDA

41,68839,400-2,288-5.5%Interest-bearing
debt

321,044

317,000-4,044

-1.3%

7.7

8.0

0.3

－

Interest-bearing debt /EBITDA multiple(Times)13

Main factors of changes

Real estate
RetailLeisure and service
Corporate, etc.

13,000
9,100
1,000
1,300
300

<<Main capital expenditure for FY2014>>(Transportation) Investment on our railway(Real estate) Investment on our real estate(+2,410)(-8,184)(-892)(-323)(+510)
8,023
9,006

Forecast of Consolidated Business Results (2)(Millions of yen)<< By Segment>>
FY2014
Results

FY2015
Forecast

ChangeChange (%)

Operating revenue

289,203285,200-4,003-1.4%

Transportation

89,661

88,100-1,561-1.7%

Real estate

88,17982,100-6,079-6.9%Retail

95,427

99,700

4,272

4.5%

Leisure and service

27,42328,000576

2.1%

OthersElimination

1,637-13,1251,700-14,400

62-1,274

3.8%－

Operating income

25,085

22,100-2,985-11.9%

Transportation

6,928

5,400

-1,528-22.1%

Real estate

14,571

12,100-2,471-17.0%

Retail

2,445

2,800

354

14.5%

Leisure and service

1,153

1,800

646

56.1%

-0
-13

0
0

0
13

－
－

OthersElimination

14

Main factors of changes

Railway
Bus
Real estate sales
Construction
Real estate leasing service
Shopping mall management
Store
Department store

-886
-407
-5,196-1,591+277+3,327+2,398-1,522

Hotel

+650

Railway
Bus
Real estate sales
Construction
Real estate leasing service
Shopping mall management
Store
Department store-1,209-272-2,862
-293
+653
+355
+151
-150

Hotel

+490

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

FY2014
Results

Operating revenue

FY2015
Forecast

Change (%)

Change85,99685,000

-996

-1.2%

Railway operation

52,721

51,960

-761

-1.4%

Subsidiary business

33,27533,040

-235

-0.7%

15,00013,900-1,100-7.3%

Railway operation

6,525

5,560

-965

-14.8%

Subsidiary business

8,475

8,340

-135

-1.6%

Ordinary income

12,838

12,200-638

Net income

9,082

8,600

-482

Operating income

Main factors of changes

Number of passengers
Passenger transportation revenue

-2.0%
-1.3%

-5.0%

Non-operating income
Non-operating expenses

+199
-263

-5.3%

Extraordinary income
Extraordinary loss

+18,422+18,592<< Forecast of operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)
FY2014
Results

FY2015
Forecast

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

FY2014
Results

FY2015
Forecast

ChangeChange(%)

Non-commuter passes

144,758

144,523

-235

-0.2%

33,56533,525-40-0.1%Commuter passes

136,060

130,548-5,512-4.1%

15,85915,251

-608

-3.8%

280,819

275,071-5,748-2.0%

49,424

48,776

-648

-1.3%

Total

15

Summary of Keihan Group’s
Medium-term Management Plan
(FY2013 – 2015)

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

Basic Policy

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

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

Create an efficient operating system through a radical reviewof the business structure・Overhaul business approaches
・Restructure and integrate businesses in the Group・Exit unprofitable businesses or businesses with limited potential

・Push ahead with the creation of highly livable areas bydeveloping strategic sites such as the KUZUHA MALL secondstage development plan in order to ensure areas along our lines
continue to be chosen by the public well into the future◆ Implement our Kyoto strategy
・Establish a position as the leading company in Kyoto
・Customers always associate Keihan with Kyoto◆ Administrative divisions
Achieve extensive efficiency gains through cost control
・Create a lean head office at Keihan Electric Railway by
reducing the size of administrative divisions
・Reduce costs in administrative divisions at Group companies◆ Promote new businesses to develop areas alongrail lines
・Promote lifecycle support businesses

17Comparison of Medium-term Management Plan with
FY2014 Results and FY2015 Forecast(Billions of yen)

16.0

14.0
12.0

10.0
8.0

18

Forecast

FY2014

Medium-termManagement Plan

FY2013Results

0.00

Results

2.0

Medium-termManagement Plan

4.0

Medium-termManagement Plan

6.0

FY2015

Comparison of Medium-term Management Plan with
FY2014 Results and FY2015 Forecast

Annual Dividend
(Yen)
7

6

6

6

5

Forecast

Medium-termManagement Plan

Results

1

Results

2

Medium-termManagement Plan

3

Medium-termManagement Plan

40
FY 2013

FY 2014

FY 2015◎Build a stable earnings base in the railway business by enhancing the value of areas along rail lines to play amore important role in the community◎ Actively invest in the Group's businesses and strengthen its financial position to support growth◎ Pay sustained returns to shareholders in line with operating results
Continue to pay stable returns to shareholders while taking into account capital levels and operating results

19Summary of Keihan Group’s Medium-termManagement Plan (FY2013 – 2015)
Operating results versus targets / operating forecasts (quantitative targets)(Billions of yen)Compared toCompared toCompared to

FY2013Results
2013/03実績

medium-term
対中期計画
management plan

FY2014
Results
2014/03実績

medium-term
対中期計画
management plan

2015/03予想
Forecast

FY2015

medium-term
対中期計画
management plan

Consolidated
連結営業利益operating income

２３２億円
23.2

３２．３％
32.3%

２５０億円
25.0

３７．１％
37.1%

２２１億円
22.1

９．４％
9.4%

Consolidated
連結EBITDAEBITDA

４０３億円
40.3

１５．６％
15.6%

４１６億円
41.6

１７．４％
17.4%

３９４億円
39.4

４．０％
4.0%

Consolidated interest連結有利子負債
bearing debt / EBITDA/EBITDA倍率
multiple

８．１倍
8.1
times

△１．７P
-1.7
point

７．７倍
7.7
times

△２．３P
-2.3
point

８．０倍
8.0
times

△０．９P
-0.9
point

Consolidated net
連結当期純利益
income

11.0
１１０億円

49.7%
４９．７％

14.4
１４４億円

94.9%
９４．９％

12.8
１２８億円

48.8%
４８．８％

Consolidated ROE(Net 連結ROE
income to（自己資本当期純利益率）
shareholders' equity)

7.4%
７．４％

2.3
point
２．３P

8.9%
８．９％

4.0
point
４．０P

－

－

Consolidated ROA
連結ROA(Operating
income to（総資産営業利益率）
total assets)

3.6%
３．６％

0.8０．８P
point

3.8%
３．８％

１．０P
1.0
point

－

－

We expect to achieve the targets in our medium-term management plan due to measures aimed atstrengthening earnings, such as reinforcing the operating structure and revitalizing areas along rail
lines

20

Summary of Keihan Group’s Medium-termManagement Plan (FY2013 – 2015)
Operating results versus targets / operating forecasts (by segment)[Operating revenue](Billions of yen)
300.0
300

(Billions of yen)
30
30.0

250.0
250

25
25.0

200
200.0

20
20.0

150.0
150

15
15.0

100
100.0

10.0
10

50
50.0

5.05

[Operating income and loss]

Leisure andレジャー･service
サービス業
流通業
RetailReal estate
不動産業
運輸業
Transportation
0

0
Plan
計画

Results
実績

FY 2013Plan
計画

Results
実績

FY 2014

Plan
計画

Forecast
予想

計画
Plan

実績
Results

FY 2013

FY 2015*Operating revenue and operating income include intersegment transactions.

21

計画
Plan

実績
Results

FY 2014

計画
Plan

予想
Forecast

FY 2015

Summary of Keihan Group’s Medium-termManagement Plan (FY2013 – 2015)
Qualitative targets

Actions

Strengthen the operating structure
through extensive efficiency gains

Operatingdivisions○ Overhaul business approaches○ Restructure and integrate
businesses in the Group○ Exit unprofitable businesses orbusinesses with limited potential○ Strengthened the operating framework through theestablishment of Keihan Asset Management Co., Ltd.
○ Restructured and integrated Keihan Uji Bus and
Keihan City Bus○ Exited from unprofitable businesses and stores(Closed FREST Komagawa store, some Station
stores and some restaurants)○ Pushed ahead with restructuring in the hotelbusiness

Administrative
divisions○ Create a lean head office at
Keihan Electric Railway by
reducing the size ofadministrative divisions○ Reduce costs in administrative
divisions at Group companies○ Reduced costs at Keihan Electric Railway head
office through efficiency improvements

Revitalize areas along the
Keihan Railway lines○ After completion of the second-stage
development plan, KUZUHA MALL reopened
on March 12 as one of Osaka’s largest
shopping centers○ Non-stop Raku Raku Keihan express service –ideal for sightseeing trips to Kyoto – was restarted
to coincide with the start of the tourist season○ Kyoto Bus joined Kyoto city’s flat fare bus zone
system, providing greater convenience to Kyoto
sightseers○ Promoted the childcare facilities inside theKuzuha Station building○ Push ahead with site development○ Implement our Kyoto strategy○ Promote new businesses to develop areas
along rail lines

22Transitioning to the next medium-term
management plan (FY2016-2018)

Implement measures to drive sustained
growthStrengthen the operating
structure through extensive
efficiency gains

Revitalize areas
along rail lines

Create tourism

Revitalize areas along rail lines

Next medium-term management plan
(FY2016-2018)

Medium-term
management plan
(FY2013-2015)

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

23

TOPICS

Progress of FY2015 Initiatives

Revitalize areas along rail lines
KUZUHA MALL second-stage development

Facility overview
Address

15-1 Kuzuha Hanazono-cho, Hirakata-shi, Osaka

Reopened on March 12 with increased floor area

Floor area

Around 200,000m2 (110,000m2 before expansion)■Strengthened lineup of urban retailers; increased the numberof high-quality fashion, interior and general goods stores

Retail area

Around 72,000m2 (50,000m2 before expansion)

Parking

Around 3,000 spaces (2,000 spaces before
expansion)

Number ofstores

231 specialist stores, plus an art gallery, Keihan
department store, Daiei, Izumiya, TOHO
Cinemas■ Added more entertainment options; introduced facilities toencourage families and couples to spend the whole day at themall■ Created a lively Keihan museum zone; TV rail carriages
used on Keihan lines in the past are one of the exhibits< Facility operations >•In the two months after reopening, average customer
traffic at the mall was roughly double the level before
redevelopment•Average daily passengers at Kuzuha Station(excluding commuter pass passengers) increased 1.3x
from the level before redevelopment•Improved the mall's ability to attract younger shoppers•Significantly expanded the mall's trading area25

Business Strategy – Transportation –Ensure safety and peace of mind
Project to elevate Keihan Main line over multiple road intersections(Neyagawa-shi and Hirakata-shi)
Project to elevate lines will remove the need for level crossings⇒Drastically reduce traffic congestion and accidents and reconnect urban areas separated by the rail line
[Project overview]
Time scale: FY2014 – FY2029 (planned)
Length of elevated line: Roughly 5.5km(Neyagawa 2.1km, Hirakata 3.4km)
Stations: Korien, Kozenji, Hirakata-koen
No. of level crossings to be removed: 21

Osaka Outer Loop Expressway 170

Osaka Prefectural Route 21

KeihanKorien Sta.

Map of the project area

Neyagawa-shi

Kozenji Sta.

Hirakata-shi

Hirakata-koen Sta.
Korien Sta.
Area to elevate Keihan Main line over multiple road intersections (approx. 5.5km)
Cross-sectional view

Bound for
Osaka

National
HighwayRoad
Korien Sta.
170

Kozenji Sta.

National
HighwayRoad
1

The Kourien Tower
KMU Kori Hospital,

Bound for
Hirakata –koen Sta.
Kyoto
Planned line
Tower Mansion

Existing line

Osaka Outer Loop Expressway 148

Project plans

26

Korien Station plans

Business Strategy – Transportation –Develop services tailored to the needs of customers
Uji / Fushimi sightseeing campaign“Uji & Fushimi: History tied to the water source”
To coincide with the completion of renovation work on Byodoin temple, aworld heritage temple site, Keihan launched a year-long campaign toattract sightseers to the area, focused on Uji's history and its connections
with the water source.
・Launched special one-day rider tickets for Uji / Fushimi
・Operation of Special Uji / Fushimi Express Trains between
Yodoyabashi and Uji・Carriages featuring special Uji / Fushimi designs
・Tie-up with Asahi Broadcasting Corporation

Special Uji/Fushimi Express Trains

Digital signage at Kyobashi Station
Digital signage (capable of showing video ads) has been installed at
Kyobashi Station
・Location: Pillars at central ticket gate, Kyobashi Station
・Number of signs: 24 60-inch LCD panels
Enhances competitiveness of Keihan transport advertising, improves
image of Station interior
Digital signage

27

Business Strategy – Real estate –Continue to focus on short-term turnover business◆ Major property sales[Aito (Fujinomori Station area development project)]
Location: 12Fukakusa Kitoro-cho, Fushimi-ku, Kyoto
Completion date: February 2015,
7 above-ground floors, 271 apartments[Fine Flats Sekime The Residence]
Location: 5-27-4 Sekime, Joto-ku, Osaka
Completion date: Early March 2015,
7 above-ground floors, 138 apartments

Aito

Initiatives to enhance profitability◆ Strategically replace portfolio assets and invest in real estate funds
・Keihan Asset Management Co., Ltd. established April 1, 2014

◆ Expand the condominium management and property management businesses
Breakdown of properties under management
Office buildings
Leasing condominiums
Owner-occupied condominiums

21
10 (305 apartments)
141 (9,449 apartments) (As of May 16, 2014)28

Business Strategy – Retail –Initiatives to enhance profitability◆ Newly opened stores[FREST petit Kuzuha Store opened (new retail format) ]・First store in a chain of mini supermarkets to be located in
Stations (opened March 12)
Location: 1F Keihan Kuzuha Station building
Opening times: 10:00 – 23:00

FREST petit
Kuzuha Store[SWEETS BOX]・Keihan Kuzuha Store (March 12)[Plug-in drugstore ]・KUZUHA MALL Store (March 12)[UNIQLO]・Kintetsu Uehommachi Station Store (February 25)
・ekimo Umeda Store (April 4)・Kansai Airport Store (April 1) *Business succession

SWEETS BOX
Keihan Kuzuha Store[Juicer Bar]・Tennoji Mio Plaza Store (March 14)
・Whity Umeda Store (April 11)◆ Store closures
・Ashikari Kyoto Yodobashi Store (February 11)
・Juicer Bar Shapo Ichikawa Store (March 31), and others

29

Juicer Bar
Whity Umeda Store

Business Strategy – Leisure and service –Initiatives to target tourism-related demand＜Hotel business＞◆Use hotel refurbishments to attract more customers[Hotel Keihan Kyoto]
・Completely renovated to strengthen earnings as aflagship lifestyle hotel
・Number of rooms increased to 322 (+30)(Renovation work implemented in stages from June 2014)
Hotel Keihan Kyoto (Image after renovation)[Kyoto Tower Hotel]
・To mark its 50th anniversary, the hotel opened nine
new rooms on March 20, such as the Tawawachancharacter-themed room, and two new banquet halls,
Ouju and Juraku , on March 13[Hotel Keihan Universal City]
・Stepped up efforts to attract family visitors, the main
target segment(192 rooms refurbished, opened March 20)
Kyoto Tower Hotel "Tawawachan character-themed room"30