FY2016(Fiscal year ended March 31, 2016)

Financial Results Presentation

May 13, 2016
Keihan Holdings Co., Ltd.
(Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.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 FY2016
Financial Results

Consolidated Statements of Income(Millions of yen)

FY2015Results

FY2016
Results

Operating revenue

294,906

300,188

Operating income

29,437

31,524

Ordinary income

27,43528,461

ChangeMain factors of changes

5,282(1.8%)

2,086(7.1%)

1,025(3.7%)

October 2015
Estimate

Transportation +3,221, Real estate -421, Retail +674,
Leisure and service +2,052, Others +48

299,600

Transportation +2,106, Real estate -869, Retail -334,
Leisure and service +1,300, Others -7

28,200Non-operating income -664 (Equity in net income of affiliates-1,156, Miscellaneous income +347)
Non-operating expenses +397, Interest expenses -349,
Miscellaneous expenses +746)

24,700Extraordinary income -13,040 (Contribution for construction-17,775, Gain on bargain purchase +4,368)
Extraordinary losses -17,445 (Loss on reduction of non-current
assets -16,925, Impairment loss -1,651, Loss on sales of noncurrent assets -1,614, Loss on step acquisitions +2,119）

19,200

Profit attributable toowners of parent

17,864

22,385

ROA

4.4%

4.7%

0.3pt

ROA: Operating income to total assets

－

ROE

10.1%

11.9%

1.8pt

ROE: Net income to shareholders’ equity－

Capital expenditures

15,87831,39815,520Depreciation

17,107

17,571463

EBITDA

46,54549,0954,521(25.3%)

45,200(97.7%)

17,600(2.7%)

2,550(5.5%)EBITDA: Operating income + Depreciation

45,800[Changes in scope of consolidation and application of the equity method (from the previous fiscal year end)]
Consolidated subsidiaries: 41 companies (+ 1 company): (New) 2 companies—Osaka Merchandise Mart Corporation (additional purchase of the company’s shares), and Keihan Electric Railway Split Preparation (establishment)
Eliminated: 1 company—Juicer Bar Corporation (merged with Keihan Restaurant)
Equity method affiliates: 1 company (- 1 company): (Eliminated) 1 company—Osaka Merchandise Mart Corporation (made into a consolidated subsidiary as a result of the additional purchase of the company’s shares)

2

Consolidated Balance Sheets(Millions of yen)

FY2015Results

FY2016
Results

ChangeMain factors of changes

Current assets

171,449

168,510-2,938Notes and accounts receivable -7,190,
Other current assets +4,455

Non-current assets

492,787

501,822

9,035

Buildings and structures +11,044, Land +7,194,
Construction in progress +3,957, Investment securities -7,399,
Investments in capital -5,130

664,236

670,333

6,096

Current liabilities

192,141

152,337-39,803

Short-term loans -37,325, Consumption taxes payable -4,739,
Advances received -2,196, Short-term bonds +5,000

Long-term liabilities

281,581326,204

44,623Long-term loans +27,196, Bonds +19,853

Total liabilities

473,722478,542

4,819

Net assets

190,513

191,790

1,277

Total liabilities and net assets

664,236

670,333

6,096

311,010

325,714

14,703

6.68

6.63

-0.05

6.11

6.12

0.01

Total assets

Interest-bearing debt at end of
fiscal period
Interest-bearing debt/EBITDA
multiple (Times)
Net interest-bearing
debt/EBITDA multiple (Times)

Retained earnings +18,578, Treasury shares -15,702* Equity capital ratio 28.2%（-0.1 pt）

Bonds +19,847, Short-term bonds +5,000,
Loans payable -10,128* Interest-bearing debts: Loans payable + bonds + short-term bonds + long-term accounts payable to the Japan Railway Construction, Transport and Technology Agency (JRTT)

3

Consolidated Statements of Cash Flows(Millions of yen)

FY2015Results

Cash flows from operating activities

Cash flows from investing activities

21,459-4,473

FY2016
Results

Change36,334-27,750

14,875

Income before income taxes +5,429
Decrease in inventories +18,577
Decrease in notes and accounts receivable–trade+11,376
Decrease in consumption taxes payable -9,341-23,276

Decrease in income due to sale of non-current assets-15,419
Increase in expenses due to purchase of non-current
assets -8,784
Increase in bonds +30,018
Increase in short-term bonds +5,000
Purchase of treasury shares -15,656
Decrease in loans payable -10,922

Cash flows from financing activities-16,275-5,76810,506

Net increase (decrease) in cash andcash equivalents

710

2,816

2,105

Cash and cash equivalents at beginningof current period

25,831

26,552

720

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

10

4

-5

Cash and cash equivalents at end of
fiscal period

26,552

29,3722,820

4Main factors of changes

Segment Information(Millions of yen)

Change (%)

October 2015
Estimate

FY2015 Results

FY2016 Results

Operating revenue

294,906

300,188

5,282

1.8%

299,600

Transportation

90,341

93,562

3,221

3.6%

92,000Real estate

89,45489,033

-421

-0.5%

89,100Retail

98,20098,875674

0.7%

101,000

Leisure and service

29,761

31,813

2,052

6.9%

30,800

Others

1,707

1,755

48

2.8%

1,700

Elimination-14,559-14,852-292－-15,000

Operating income

29,437

31,524

2,086

7.1%

28,200Transportation

8,086

10,193

2,106

26.0%

8,400

Real estate

14,752

13,882

-869

-5.9%

13,100Retail

3,161

2,826

-334

-10.6%

2,500

Leisure and service

3,299

4,599

1,300

39.4%

4,200

Others

-4

-12

-7

－

0

Elimination

142

34

-108

－

0

Change(Note) Effective from the reported consolidated accounting year, Biomarket Co., Ltd. has been transferred from the “Others” segment to the “Retail” segment due to a change
in segment classification. The above comparison is therefore made using the FY2015 figures that are recalculated according to the new segment classification.

5

Segment Information (Breakdown)[Consolidated subsidiaries] 42 companies (Keihan Electric Railway is included in both the transportation business and the real estate business)[Equity method affiliates] 1 company
Transportation

Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd., and 14 other companies

Real estate

Keihan Electric Railway Co., Ltd., Keihan Dentetsu Real Estate Co., Ltd., Keihan Asset Management Co., Ltd, Osaka
Merchandise Mart Corporation and 6 other companies

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

Leisure and service

Hotel Keihan Co., Ltd., Kyoto Tower Co., Ltd., Kyoto Century Hotel Co., Ltd., Biwako Kisen Steamship Co., Ltd., and6 other companies

OthersKeihan Card Co., Ltd.

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

OthersJPY1.7 billion (0.5%)

Others- JPY0 billion (-0.0%)

Leisure andservice
JPY31.8 billion(10.1%)

Retail
JPY98.8 billion(31.4%)

Leisure and service
JPY4.5 billion(14.6%)

Transportation
JPY93.5 billion(29.7%)

Retail
JPY2.8 billion(9.0%)

Real estate
JPY89.0 billion(28.3%)

Real estate
JPY13.8 billion(44.1%)

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

6

Transportation
JPY10.1 billion(32.3%)

Results of Transportation(Millions of yen)

FY2015Results

FY2016
Results

ChangeChange (%)

October 2015
Estimate

Main factors of changes

3.6%

RailwayBus
Elimination

77,627 (+2,918)
27,039 (+285)-11,103(+17)

92,000

2,106

26.0%

RailwayBus

8,965 (+1,601)
1,136 (+501)

8,400

10,788

320

3.1%

－

12,749

1,148

9.9%

－

Operatingrevenue

90,341

93,562

3,221

Operating income

8,086

10,193

Depreciation

10,468

Capitalexpenditures

11,601<< Operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)

Passenger transportation revenue(Millions of yen)

FY2015Results

FY2016
Results

ChangeChange(%)

FY2015Results

FY2016
Results

ChangeChange(%)

Non-commuter
passes144,509

149,616

5,107

3.5

33,593

34,6151,021

3.0Commuter passes

136,279

138,757

2,478

1.8

15,831

16,115

284

1.8

Total

280,788288,374

7,586

2.7

49,42550,731

1,306

2.6

7

Results of Real Estate(Millions of yen)

FY2015Results

FY2016
Results

ChangeChange (%)

October 2015
Estimate

Main factors of changes

Operating revenue

89,45489,033

-421

-0.5%

Real estate
Construction
Elimination

Operating income

14,752

13,882

-869

-5.9%

Real estate
Construction

Depreciation

4,242

4,333

91

2.2%

Capital expenditures

2,351

13,392

11,040469.5%

72,285 (-1,127)
21,535 (+1,900)-4,788 (-1,193)

89,10013,352 (-1,023)
442
(+66)

13,100－2016/03 Construction of Keihan Yodo Logistics
Yard and others<<Results by business>>(Millions of yen)
Operating revenue

FY2015Results

FY2016
Results

Operating income

ChangeFY2015Results

Change(%)

FY2016
Results

Change(%)

ChangeReal estate sales

53,84051,562-2,277

-4.2%

5,558

4,703

-854

-15.4%

Real estate leasing
service

16,926

17,971

1,045

6.2%

8,643

8,454

-188

-2.2%

Other businesses

2,646

2,751

105

4.0%

174

194

19

11.1%

Total

73,41372,285-1,127-1.5%

14,376

13,352-1,023-7.1%<<Main condominium buildings for sale>>
Oji Asukayama, The First Tower & Residence (Tower wing)
The Kyoto Residence Shijo-Kawaramachi
Fine Flats Minamimori-machi
Fine Flats Tennoji Urbanex
The Osaka Residence Umeda

Sales amount (Millions of yen)
5,574
5,344
3,403
3,017
2,780

8

Number of units sold
218
99
107
104
71

Location
Kita-ku, Tokyo
Shimogyo-ku, Kyoto City
Kita-ku, Osaka City
Tennoji-ku, Osaka City
Kita-ku, Osaka City－

Results of Retail(Millions of yen)

FY2015Results

FY2016
Results

ChangeChange (%)

Operating revenue

98,20098,875674

0.7%

Operating income

3,161

2,826

-334

-10.6%

Depreciation
Capital expenditures

1,348
683

1,284
1,609

-63
926

-4.7%
135.5%

October 2015
Estimate

Main factors of changes
Department store
51,016 (-1,567)
Store
27,897 (+781)
Shopping mall management 13,829 (-23)
Others
9,093 (+1,546)
Department store
1 (-506)Store
1,090 (+12)
Shopping mall management 1,713 (+180)
Others73 (+17)

101,000

2,500

－
－

<< Major New Stores>>Name
SWEETS BOX Subway Shin-osaka Store
An3 Subway Shin-osaka Store

Opening date

Location

March 30, 2016

Yodogawa-ku, Osaka City

March 30, 2016
October 13, 2015

Toshima-ku, TokyoSWEETS BOX Seibu Ikebukuro Store

September 28, 2015

Toshima-ku, Tokyo

An3 Subway Yodoyabashi Store

September 28, 2015

Chuo-ku, Osaka City

August 1, 2015

Yawata City, Kyoto Prefecture<< Sales of Store >>(Millions of yen)

Yodogawa-ku, Osaka CitySWEETS BOX Echika Ikebukuro Store

Jackson Beef Steak House<< Sales of Department Store >>
Store

Sales
amount(Millions of yen)

Change22,74452

Store

12,089324

Kuzuha Store

10,167

-182

CVS

5,972

521

7,054

-36

Kiosks*－-519

Station business

8,238

363

Miscellaneous
revenue

1,597

90

Total

27,897781

Juicer Bar Akihabara East-West Free Street Store

July 29, 2015

Chiyoda-ku, Tokyo

MUJI com ekimo Umeda Store

July 17, 2015

Kita-ku, Osaka City

Hirakata Store*

5,600-1,126

Juicer Bar Yokohama Porta Store

April 29, 2015

Nishi-ku, Yokohama City

Suminodo Store

4,856

-291

Miscellaneous revenue

592

15

Total

51,016-1,567

Name

Closing date

Location

Udon Café Ashikari Amagasaki Q’s Mall Store

January 11, 2016

Amagasaki City, Hyogo Prefecture

Juicer Bar Yodobashi-Akiba Store

October 25, 2015 Chiyoda-ku, Tokyo

Juicer Bar Meieki Termina Store

August 16, 2015

Nakamura-ku, Nagoya City

Saint Marc Matsui-Yamate Store

June 30, 2015

Yawata City, Kyoto Prefecture

ChangeMoriguchi Store

Kyobashi Store<< Main Stores Closed>>

DivisionSales
amount* Hirakata Store was temporarily closed for renovation.

9* “Kiosks” have been changed into CVS.

Results of Leisure and Service
Operating revenue

29,761

31,813

2,052

6.9%

Operating income

3,299

4,599

1,300

39.4%

(Millions of yen)
October 2015
Main factors of changes
Estimate
Hotel
27,705 (+1,883)
30,800
Leisure4,318(+182)
Hotel
4,521 (+1,106)
4,200
Leisure284 (+185)

Depreciation

1,042

1,145

103

9.9%

－

Capital expenditures

1,223

3,924

2,701

220.8%FY2015Results

FY2016
Results

ChangeChange (%)

2016/03: Guest room renovation and others<< Hotel occupancy rates >>FY2015Results

FY2016
Results

Number ofrooms

ChangeTemmabashi

95.2%

88.6%

-6.6 pt

315

Kyoto

95.4%

94.7%

-0.7 pt

314

Universal Tower

92.3%

96.7%

4.4 pt641

Universal City

92.1%

97.9%

5.8 pt330

Kyobashi

96.6%

96.7%

0.1 pt214

Sapporo

97.0%

95.8%

-1.2 pt

200

Asakusa

96.4%

96.8%

0.4 pt

178

86.0%

88.5%

2.5 pt171

Kyoto Tower Hotel

94.4%

94.3%

-0.1 pt

162

Kyoto Dai-ni Tower Hotel

95.6%

75.5%

-20.1 pt－

Kyoto Tower Hotel Annex

98.2%

96.9%

-1.3 pt

122

Kyoto Century Hotel

93.1%

74.0%

-19.1 pt

219

Total

－

－

－

2,866

Hotel
KeihanBiwako Hotel
Kyoto
Tower

*1 Hotel Keihan Temmabashi, Hotel Keihan Kyoto, Hotel Keihan Universal Tower, Biwako Hotel, and Kyoto Century Hotel carried out guest room renovation.
*2 Kyoto Dai-ni Tower Hotel was closed as of January 12, 2016.

10－

Non-consolidated Statements of Income(Millions of yen)

FY2015Results

FY2016
Results

ChangeChange(%)

Operating revenue

86,342

87,685

1,342

1.6%

Railway

52,67554,146

1,470

2.8%

Subsidiary business

33,66633,538

-128

-0.4%

Real estate sales

15,26015,760499

3.3%

Real estate leasing service

15,806

14,792-1,014-6.4%

Leisure

2,599

2,986

386

14.9%

Operating income

16,512

16,985473

2.9%

16,100Railway

7,301

8,380

1,079

14.8%

7,450

Subsidiary business

9,210

8,604

-605

-6.6%

8,650

Real estate sales

1,268

1,075

-193

-15.2%

Real estate leasing service

7,999

7,530

-468

-5.9%

-57

-0

56

－

LeisureOrdinary income

Net income

15,211

9,250

15,652

11,466440

2,216

October 2015
Estimate

Main factors of changes

88,200
Number of passengers
Passenger transportation revenue

+2.7%
+2.6%

53,97034,230

Number of visitors to Hirakata Park

+6.2%

2.9%

Non-operating income+466(Dividends income +235, Miscellaneous income +228)
Non-operating expenses+498(Interest expenses -275, Miscellaneous expenses +774)

14,60024.0%

Extraordinary income
17,795(Contribution for construction-17,613)Extraordinary losses-19,258(Reduction entry of land contribution for construction-17,070
Loss on sales of non-current assets-1,611
Impairment loss
-611)

10,50011

FY2017 Forecasts

Forecast of Consolidated Business Results(Millions of yen)

FY2016
Results

FY2017
Forecast

ChangeChange (%)

Main factors of changes

Operating revenue

300,188299,500

-688

-0.2%

Transportation -162, Real estate -4,033,
Retail +6,224, Leisure and service -1,013

Operating income

31,52426,600-4,924-15.6%

Transportation -2,593, Real estate -1,482,
Retail +373, Leisure and service -799

Ordinary income

28,461

24,500-3,961-13.9%

Non-operating income -45
Non-operating expenses -1,008

Profit attributable to owners of
the parent

22,385

16,500-5,885-26.3%

Extraordinary income -6,085
Extraordinary losses -2,563

Capital expenditure

31,39846,60015,201

48.4%

Depreciation

17,571

18,400828

4.7%

EBITDA

49,09545,000-4,095-8.3%

Interest-bearing debt

325,714354,000

28,285

8.7%

Interest-bearing debt/
EBITDA multiple (Times)

6.63

7.87

1.24

－

Net interest-bearing debt/
EBITDA multiple (Times)

6.12

7.31

1.19

－

13

<Breakdown of capital expenditure>
Transportation
13,700(+950)
Real estate
5,200 (-8,192)
Retail3,400 (+1,790)
Leisure and service
2,200 (-1,724)
Corporate, etc.
22,100 (+22,378)<<Main capital expenditure for FY2016>>(Transportation)
Investment in Keihan Electric Railway’s
railways
7,814(Real estate)
Our investment in real estate 2,757

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

FY2016
Results

FY2017
Forecast

ChangeChange (%)

Main factors of changes

Operating revenue

300,188299,500

-688

-0.2%

Transportation

93,56293,400

-162

-0.2%

Railway -727, Bus -439, Elimination +1,003

Real estate

89,03385,000-4,033-4.5%

Real estate sales -5,996
Real estate leasing service +2,320

Retail

98,875

105,100

6,224

6.3%

Department store +2,662, Store +2,660,
Shopping mall management +306

Leisure and service

31,81330,800-1,013-3.2%

Hotel -887

Others

1,755

1,800

44

2.5%

Elimination-14,852-16,600-1,747－

Operating income

31,52426,600-4,924-15.6%

Transportation

10,1937,600-2,593-25.4%

Railway -1,916, Bus -572

Real estate

13,882

12,400-1,482-10.7%

Real estate sales -1,384, Real estate leasing service -88

Retail

2,826

3,200

373

13.2%

Department store +433, Store +68,
Shopping mall management -237

Leisure and service

4,599

3,800

-799

-17.4%

Hotel -813

Others

-12

0

12

－

Elimination

34

-400

-434

－

14

Share Buyback and Issuance of Euro-Yen
Convertible Bonds
Issuance of euro-yen convertible
bonds (CB)

Share buyback
Total amount of share buyback (maximum) JPY20 billion
Total number of shares to buy back (maximum) 30 million
shares* 22.05 million shares / JPY17 billion as of April 30, 2016＋

Total issuance amount JPY20 billion (5 years, no coupon)
Conversion price JPY1,063 (mark-up ratio 38.05%)* 130% conversion restriction clause■ Purpose
Raise ROE through capital restructuring

Proactively respond to the unraveling of cross shareholding for strategic
purposes
Implement a flexible financial strategy in response to changes in the businessenvironment, including the improvement to ROA through a review of the company’s
assets such as strategically held shares
15

TOPICS

Progress Status of KeihanGroup’s Medium-Term
Management Plan
“Bravely Pursuing Creation”

Keihan Group’s Medium-Term Management Plan
(FY2016 – FY2018)

Basic Policy

Keihan Group’s Determination to Take on
Challenges at the “Second Foundation Stage”– Bravely Pursuing Creation –Strengthen
the Management Foundation

Main Strategies
Achieve new growth through the creation ofsightseeing opportunities

Continuous measures to revitalize railway
transportation toward regaining the glory ofrailway transportation

Revitalize the areas along the Keihan Railway
lines—efforts to redesign the areas along the
Keihan Railway lines

Real estate business as the engine of the group’s
growthCreate contents to enhance the “value of living”

Retail business to enhance the value of“community” and “living”

Establish a “steadfast group management”
style
Transition to a holding company system(April 1, 2016)

Hotel and leisure businesses to createsightseeing opportunities

17

Transition to a Holding Company System
Up to March 31, 2016

Group management structure from April 1, 2016

Keihan Electric Railway Co., Ltd.
(listed company)

Keihan Holdings Co., Ltd.
(listed company)

Other group member companies

Keihan Tatemono Co., Ltd.

(Succeed the property development
business and the asset managementbusiness for properties owned by Keihan
Holdings Co., Ltd.)

Keihan Dentetsu Real Estate Co., Ltd.

(Succeed the real estate sales business)

18

Keihan Electric Railway Co., Ltd.

(Succeed the railway business)

Divest the railway business and real estate sales
business into wholly owned subsidiaries
Transfer the asset management and real estatedevelopment functions for for-lease properties
owned by the company to a wholly owned
subsidiary⇒ Keihan Holdings Co., Ltd. is to makeinvestments in for-lease properties including
redevelopment and new acquisitions from theviewpoint of optimization for the entire group(promote the group’s CRE)

Management control

Management strategy

Management control

Management strategy

Real estate business

Railway businessKeihan Group member companies

Strategic themes
including the group’s
CRE (ownership offor-lease properties)

Keihan Holdings’ Roles
Implement cross-sectional strategies for a wide variety ofgroup businesses
Create new business models including alliances withcompanies from different industries
Make an effective allocation of management resources
including business properties to expand priority businesses
Play the above roles from the perspective of optimization for theentire group in order to achieve further growth19Proceeds from Transporting Passengers

Increase: Purchase prior to theconsumption tax hike

Increase: Renewal of KUZUHA MALL
Decrease: Reaction to the previous year’spurchase prior to the consumption tax hike

◆ Income increase for the third consecutive
fiscal year

Year-on-yearchange+2.6%◆ Group Companies’ Railway Business(FY2015; year-on-year comparison)■ Increase in the number of tourists heading toward Kyoto■ Increase in the number of passengers using Fushimi-Inari
Station(Increase in the number of visitors to Fushimi Inari Taisha
Shrine)■ Increase in the number of passengers using Uji Station(Completion of the Heisei Repair of Hoo-do Hall [nationaltreasure] of Byodoin Temple)■ Renewal of KUZUHA MALL (March 2014)■ Increase as a reaction to the previous year’s income decrease
due to the consumption tax hike (FY2015)20■ Eizan Electric Railway Co., Ltd.
Proceeds from transporting passengers: up 6.3%
■ Keifuku Electric Railroad Co., Ltd.
Proceeds from transporting passengers: up 9.1%

Impact of Inbound Travelers
Hotel Business

Other Group Member Companies(FY2015; year-on-year comparison)■ Kyoto regular tour buses
Number of passengers on tour buses designed forforeign travelers: up 34.0%■ Osaka Aqua-Bus (Santa Maria Aqua Liner)
Number of foreign travelers to Japan: 2.1-fold21

Achieve new growth through the creation ofsightseeing opportunities
Project to open a new hotel in the area in front of Kyoto Station• We will aim to open the Keihan Group’s flagship hotel,
fitting for the global market, by promoting the integrated
redevelopment of Kyoto Century Hotel and Kyoto Dai-ni
Tower Hotel.
• We will implement renewal for Hotel Keihan Kyoto,
Kyoto Tower, and Kyoto Tower Hotel Annex, thereby
enhancing the earning power of the area in front of Kyoto
Station.

◆ Progress Status[Kyoto Dai-ni Tower Hotel]
Closed for the construction of a new hotel (January 12,
2016)[Kyoto Century Hotel]
Completed a full renewal(in March 2016)
Adopted the “BIO-Style”
concept advocated by
Kyoto Century Hotel’s “Kyo Premium” room
Keihan Holdings

22

Working on the project toward
the grand opening scheduled in 2018

Create contents to enhance the “value of living”
Create contents under the theme “BIO-Style”“BIO-Style” is a lifestyle aimed at achieving a healthy, beautiful, and high-quality life andcontributing to a recycling-oriented society. We will aim to establish “BIO-Style” as Keihan’s
new brand, in addition to “safety and peace of mind.”◆ Establishment of a project promotion section
We established a new section for the promotion of the BIO-Style project inJuly 2015. The section is promoting this Group-wide project.
BIO-Style Kyoto/Shijo-Kawaramachi
Project (conceptual image)

Promotion of BIO-Style Kyoto/Shijo Kawaramachi Project
We offer “BIO-Style” contents in a complex to beconstructed in Shijo-Kawaramachi, the center of Kyoto.
We plan to create a flagship facility consisting of a hotel,
relaxation services, organic shops, cafés and so forth.
Consolidation of the BIO-Style brandWe plan to implement branding activities to improve therecognition of the BIO-Style brand and to identify potential
customers before the opening of the flagship facility.

23

Map of areas surrounding the scheduled site of
BIO-Style Kyoto/Shijo-Kawaramachi

Continuous measures to revitalize railway transportation
toward regaining the glory of railway transportation
Achieve synergy with the strategy to create sightseeing opportunities
Renewal of Gion-shijo Station
Open a Tourist Information Center (on April 28, 2016)
Cater to the tourist information needs of domestic and overseas visitors
Subcontract Rakutabi Co., Ltd., which is familiar with the history and cultureof Kyoto and has a strong track record in providing tourist information in Kyoto
In addition to the area surrounding Gion-shijo Station, provide tourist
information mainly in the areas alongside Keihan Railway lines in Kyoto,
Osaka and Shiga to promote the use of railways

Expand commercial facilities (scheduled to be opened one by one)
Expand the floor area of commercial facilities and recreate stores andcommercial merchandises in order to attract more people and improve ourearning power through enhanced convenience for daily living and tourism
In addition to catering to daily needs, we plan to set up confectionary shops thatsell popular souvenirs from Kyoto, cafés, and so forth

Change to the Keihan Line timetable (March 19, 2016)
Implemented as part of the strategies to revitalize the areas
along the Keihan Railway lines and to achieve new growththrough the creation of sightseeing opportunities
Reduce the traveling time of limited express trains
Regularly operate the rapid-transit limited express, “Rakuraku,”
which does not stop at any stations between Kyobashi and Shichijo,
on weekdays and holidays
Scheduled to introduce the “Keihan Limited Express Premium Car” (provisionalname) in 2017 to revitalize railway transportation

24

Tourist Information Center at Gion-shijo Station(conceptual image)

Continuous measures to revitalize railway transportation
toward regaining the glory of railway transportation
Achieve synergy with the strategy to create sightseeing opportunities
Keifuku Electric Railroad Co., Ltd. creates a new station, “Satsuei-sho-mae,” on
the Arashiyama Line
Location: 1-5 Uzumasa Kamino-dan-cho, Ukyo-ku, Kyoto City
Using the connection to Uzumasa Station on the JR Sagano Line (Sanin MainLine), improve access to the world’s cultural heritage sites along the Arashiyama
Line such as the Golden Pavilion, Ryoan-ji Temple, and Ninna-ji Temple, as wellas access to JR Kyoto Station
Improve access to the Toei Kyoto Studio Park (Toei Uzumasa Eigamura)Opening date: April 1, 2016
Contribute to the creation of sightseeing opportunities through enhanced transportation networks

Measures to improve passenger services
Make Fukakusa Station and its paths barrier free
Nearest station to the Fukakusa Campus of Ryukoku University
The number of students increased following the relocation of theFaculty of Intercultural Communication from Shiga Prefecture in
April 2015.
Joint project with Kyoto City as a comprehensive railway station
improvement projectUse commencement date: March 31, 2016
Improve convenience and safety by widening platforms andFukakusa Station and its paths after renewal (conceptual image)using barrier-free designs

25Real estate business as the engine of
the group’s growth
Continue sales business with a focus on short-term turnover
Main condominiums to be sold in the term ended March 31, 2017 and thereafter
Property name, location, number of units for sale

Scheduled to be posted inFine City Sapporo, The Tower Odori Park
Chuo-ku, Sapporo City 116 units

M arch 2017The Osaka Residence Umeda-Ogimachi Park
Kita-ku, Osaka City 69 units

M arch 2017

Fine Centreo City
Naniwa-ku, Osaka City 142 units

M arch 2017

The Kyoto Residence Gosho-M inami*
Nakagyo-ku, Kyoto City 43 units*

M arch 2017

Fine City Koshien
Nishinomiya City, Hyogo Prefecture 145 units*

M arch 2017

Fine City Higashi-M atsudo M all & Residence
M atsudo City, Chiba Prefecture 382 units*

M arch 2018

Fine City Oji-Kamiya River & Forest
Adachi-ku, Tokyo 319 units

M arch 2018

Umeda Toyosaki Ultra High-rise Quake-proof Tower Project*
Kita-ku, Osaka City 312 units*

M arch 2019

Fine City Higashi-Matsudo Mall & Residence (conceptual image)

Kitahama The Tower*
Chuo-ku, Osaka City 311 units*
Imagine Terrace Project*
Tsurumi-ku, Yokohama City 338 units** Joint project; the number of units is the total number of units.

M arch 2019M arch 2019

The number of units and the timing of posting of the above properties may change.
Kitahama The Tower (conceptual image)26

Real estate business as the engine of
the group’s growth
Enhance the real estate leasing businessParticipation in the Toranomon 1-chome district Type-1
urban area redevelopment project
We participate in the redevelopment project under the initiative of Mori
Building Company in the Toranomon area, where redevelopment andrebuilding are progressing.
Construction is scheduled to commence in FY2017 and to be completed in
FY2020.
A 36-story office tower with approximately 94,000 square meters of large
office space and approximately 6,300 square meters of commercial facilities
Toranomon New Station on the Hibiya Line (provisional name; scheduled tostart operating in FY2021)
It will be connected to Toranomon Station on the Ginza Line.

Acquisition of Kyoto Shijo-Kawaramachi Building
Location:

338 Tominaga-cho, 2-chome Matsubara-agaru, Kawaramachi-dori,Shimogyo-ku, Kyoto City
(Six minutes on foot from Keihan Electric Railway Gion-Shijo
Station and three minutes on foot from Hankyu Electric Railway
Kawaramachi Station)
Acquisition date: March 31, 2016 (beneficial interest in trust)
Total floor area:
9,701.04 square meters
Building size:
Steel-framed, reinforced concrete, flat-roofed structure with one
underground floor and nine above-ground floors
Completed in:November 1982
Investment amount: approximately JPY2.5 billion

27

Retail business to enhance the value of“community” and “living”
Further improve the quality of in-station shopping business◆ Develop in-station shopping business at Shin-Osaka Station on
the Midosuji Line
■ Keihan The Store Co., Ltd. is entrusted with and has started “in-station”
developer business at Shin-Osaka Station on the Midosuji Line operated by
the Osaka Municipal Transportation Bureau (March 30, 2016).
■ Name: Shin Naniwa Daishokudo
Number of stores: 11
Estimated sales: JPY1.5 billion a year
Number of passengers: Approximately 130,000 a day at Osaka Municipal
Subway Shin-Osaka Station (actual figure in FY2014)

Shin Naniwa Daishokudo

Steady performance at a faster pace than the plan

◆ Opening of “MUJI com” stores■ Operate the first in-station small MUJI outlet in Osaka Prefecture, “MUJI com
ekimo Umeda Store,” under a licensed store agreement with Ryohin Keikaku Co.,
Ltd. (July 2015)■ Average sales per day rose 30% from the time of opening, increasing revenues
steadily.
■ On the back of the strong performance of Umeda Store, there is a plan to open astore in Namba Walk (in late May 2016).
MUJI com ekimo Umeda Store

28

Hotel and leisure businesses to create sightseeing
opportunities
Raise the quality of our existing hotels in terms of both facilities and contents
Enhance competitiveness through renewals[Capture visitors to USJ]
Hotel Keihan Universal Tower
Renovation of 343 guest rooms was completed(17th to 30th floors)
Renovation of 298 guest rooms is scheduled(5th to 16th floors)

Hotel Keihan Universal Tower“Deluxe Family” room

(To be completed by the end of FY2017)[Hotel Keihan Kyoto]
Created 34 new guest rooms
Created a new “Superior Floor” on the 13th
floor (26 rooms)
Two Garden Junior Suite Rooms “Zen”(March 1)

The latest reservation situation remains strong.
29

Hotel Keihan Kyoto “Garden
Junior Suite Room—Zen—“