First Half of FY2016(Ended September 30, 2015)

Financial Results Presentation

November 10, 2015
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 the First Half of FY2016
Financial Results

Consolidated Statements of Income(Millions of yen)

1 H FY2015
Results

1 H FY2016
Results

Operating revenue

128,239

143,269

Operating income

13,32018,075

Ordinary income

11,77916,220

Profit attributable toowners of parent

8,152

13,356

EBITDA

21,75026,573

Depreciation

8,429

8,498

Change15,030(11.7%)

4,754(35.7%)

4,440(37.7%)

5,204(63.8%)

4,823

Main factors of changes

April 2015
Estimate

Transportation +1,829, Real estate +10,778,
Retail +1,042, Leisure and service +1,321

134,800

Transportation +1,471, Real estate +2,140,
Retail -314, Leisure and service +1,498

12,300Non-operating income +104
(Dividend income +53, Miscellaneous income +40)
Non-operating expenses +418
(Interest expenses -147, Miscellaneous expenses +566)

10,600Extraordinary income +4,733(Gain on bargain purchase +4,382)
Extraordinary losses +2,476(Loss on step acquisitions +2,119)

EBITDA: Operating income + Depreciation

9,800

－

(22.2%)

69－(0.8%)[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
share), 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
due to additional purchase of the company’s shares)

2

Consolidated Balance Sheets(Millions of yen)

FY2015Results

Current assets
Fixed assets

171,449

1 H FY2016
Results

Change153,388-18,060

492,787

497,369

4,582

664,236

650,758-13,478

Current liabilities

192,141

165,926-26,215

Long-term liabilities

281,581281,845264

Total liabilities

473,722447,772-25,950

Net assets

190,513202,986

12,472

Total liabilities and net
assets664,236

650,758-13,478

Total assets

Interest-bearing debt at endof fiscal period

311,010301,397-9,612Main factors of changes
Notes and accounts receivable
Cash and deposit-12,527-10,616

Buildings and structures
Construction in progress
Investment securities+4,754+2,610-2,245

Accounts payable
Short-term loans
Advances received-11,035-8,460-3,682Retained earnings* Equity capital ratio+11,31130.8%(+2.5pt)

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

3-9,471-125-15

Consolidated Statements of Cash Flows(Millions of yen)

1 H FY2015
Results

1 H FY2016
Results

ChangeMain factors of changes

14,905

Net income before income taxes
Decrease in inventories
Decrease in other current liabilities+6,697+15,083-6,097-9,583

2,459

Purchase of fixed assets
Proceeds from sales of fixed assets+1,918+408

5,991-12,028-18,020

Decrease in loans payable
Decrease in bonds-16,698-3,024

Net increase (decrease) in cash andcash equivalents-9,966-10,621-655

Cash and cash equivalents at beginningof interim 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 ofinterim period

15,875

15,93559

Operating cash flows-3,915

10,990Investing cash flows-12,042

Financing cash flows

4Segment Information(Millions of yen)

1 H FY2015
Results

1 H FY2016
Results

Change (%)

ChangeOperating revenue

128,239

143,269

15,030

11.7%

Transportation

45,10846,937

1,829

4.1%

Real estate

28,02738,805

10,778

38.5%

Retail

46,69347,736

1,042

2.2%

Leisure and service

14,865

16,186

1,321

8.9%

862

868

5

0.7%

Elimination-7,317-7,26552－

Operating income

13,32018,075

4,754

35.7%

Transportation

5,046

6,518

1,471

29.2%

Real estate

5,193

7,333

2,140

41.2%

Retail

1,372

1,057

-314

-22.9%

Leisure and service

1,648

3,146

1,498

90.9%

Others

-5

4

9

－

Elimination

66

14

-51

－

Others(Note) Effective from 1Q FY2016, Biomarket Co., Ltd. has been transferred from the “Others” segment to the “Retail” segment due to a change in segmentclassification. This company has been included in the scope of consolidation since 3Q FY2015, and thus the transfer has no effect on the figures for 1H
FY2015 (ended September 2014).

5

Segment Information (Breakdown)[Consolidated subsidiaries][Equity method affiliates]
Transportation
Real estate

42 companies (Keihan Electric Railway covers both the transportation business and the real estate business)
1 company

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

Leisure andservice

Hotel Keihan Co., Ltd., Kyoto Tower Co., Ltd., Kyoto Century Hotel Co., Ltd., Biwako Kisen Steamship Co., Ltd.,and 6 other companies

OthersKeihan Card Co., Ltd.

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

Others0.8 billion (0.6%)

Others¥0 billion (0.0%)

Leisure andservice¥16.1 billion(10.7%)

Retail¥47.7 billion(31.7%)

Leisure andservice¥3.1 billion(17.4%)

Transportation¥46.9 billion(31.2%)

Retail¥1.0 billion(5.9%)

Real estate¥38.8 billion(25.8%)

Real estate¥7.3 billion(40.6%)

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

6

Transportation¥6.5 billion(36.1%)

Results of Transportation(Millions of yen)

1 H FY2015
Results

1 H FY2016
Results

ChangeOperatingrevenue

45,10846,937

1,829

Operatingincome

5,046

6,518

1,471

Change (%)

4.1%

RailwayBus
Elimination

38,597
13,507-5,167（+2,066）（+226）（-464）

29.2%

Railway
Bus

5,619
880

（+947）（+538）<< Operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)
1H
FY2015Results

1H
FY2016
Results

ChangeChange(%)

Summary

Passenger transportation revenue(Millions of yen)
1H
FY2015Results

1H
FY2016
Results

ChangeChange(%)

Non-commuter
passes71,55674,252

2,696

3.8%

16,625

17,183557

3.4%

Commuterpasses70,15971,377

1,218

1.7%

8,053

8,201

147

1.8%

Total

141,715

145,630

3,914

2.8%

24,67825,384

705

2.9%

7

Results of Real Estate(Millions of yen)

1 H FY2015
Results

1 H FY2016
Results

ChangeOperatingrevenue

28,02738,805

10,778Operatingincome

5,193

7,333

2,140

Change (%)

Summary

38.5%

Real estate
Construction
Elimination

32,315 （+10,427）
8,049
（+73）
-1,559（+276）

41.2%

Real estate
Construction

7,569 （+2,192）-322（-212）<<Results by business>>(Millions of yen)

Operating revenue

Operating income
1 H FY2015
Results

1 H FY2016
Results

84.8%

812

3,097

2,285

281.4%

-64

-0.7%

4,508

4,364

-144

-3.2%

1,360

239

21.3%

56

107

51

90.5%

32,315

10,427

47.6%

5,377

7,569

2,192

40.8%

1 H FY2015
Results

1 H FY2016
Results

Real estate sales

12,093

22,347

10,253

Real estateleasing service

8,672

8,607

Other businesses

1,121

Total

21,887

ChangeChange(%)<<Main condominium buildings for sale>>
Sales amount(Millions of yen)

Number ofunits sold

The Kyoto Residence Shijo-Kawaramachi

5,344

99

Shimogyo-ku, Kyoto-shi

Fine Flats Tennoji Urbanex

2,064

71

Tennoji-ku, Osaka-shi

Fine Flats Kyoto Momoyama Gokonomiya

1,966

51

Fushimi-ku, Kyoto-shi

Shinagawa Tower Residence

1,711

20

Minato-ku, Tokyo

Aito

1,443

75

Fushimi-ku, Kyoto-shi

8

Location

ChangeChange(%)

Results of Retail(Millions of yen)

1 H FY2015
Results

Operatingrevenue
Operatingincome1 H FY2016
Results

46,693

1,372

47,736

ChangeChange (%)

1,042

1,057

-314

2.2%

-22.9%

Summary
Department store
23,771（-984）
Store
13,730（+491）
Shopping mall management 6,850（-127）
Others
4,674 （+1,532）
Department store
Store
Shopping mall management
Others

-285
559
725
86

（-288）
（+65）
（-62）
（+8）

<< Major New Stores>>Name
SWEETS BOX, Seibu-Ikebukuro Store
An3, Subway Yodoyabashi Store

Opening date
September 28, 2015

Location

Store

Sales
amountChangeMoriguchiStore

10,769217

Hirakata
Store*

2,051-1,182Sennan-gun, Osaka

Kyobashi
Store

3,390

22

Minami-ku, Saitama-shi

Kuzuha Store

4,901

27

Suminodo
Store

2,386

-61

Miscellaneous
revenue

271

-8

Total

23,771-984

Chuo-ku, Osaka-shi

Jackson Beef Steak House

August 1, 2015

Yawata-shi, Kyoto

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-shi

Juicer Bar, Yokohama Porta Store

April 29, 2015

Nishi-ku, Yokohama-shi

SWEETS BOX, Beans Musashi Urawa
Store

March 27, 2015
December 11, 2014<< Main Stores Closed>>
Name

Closing date

Location

September 22, 2015

Kohoku-ku, Yokohamashi

Juicer Bar, Meieki Termina Store

August 16, 2015

Nakamura-ku, Nagoyashi

Saint Marc, Matsui-Yamate Store

June 30, 2015

Yawata-shi, Kyoto

Ashikari, Kyoto Station StoreMarch 29, 2015

Shimogyo-ku, Kyoto-shi

Juicer Bar, Tsunashima Store<< Sales of Store >>(Millions of yen)Toshima-ku, Tokyo

September 28, 2015

UNIQLO, Kansai Airport Departure AreaStore<< Sales of Department Store >>Change

Store

5,944

192

Convenience
store

3,029

262

－

-286

Station business

3,995

302

Miscellaneous
revenue

760

19

Total

13,730491

Division

Kiosk** The Hirakata Store is temporarilyclosed, due to renovation construction.

9(Millions of yen)Salesamount*“Kiosk” business has been changed into
Convenience store business.

Results of Leisure and Service(Millions of yen)

1 H FY2015
Results

1 H FY2016
Results

ChangeChange (%)

Summary

Operatingrevenue

14,865

16,186

1,321

8.9%

Hotel
Leisure13,935 （+1,290）
2,358
（+49）

Operatingincome

1,648

3,146

1,498

90.9%

Hotel
Leisure2,913 （+1,375）
336（+114）<< Hotel occupancy rates >>1 H FY2015
Results

1 H FY2016
Results

Temmabashi

94.2%

85.9%

-8.3pt

315

Kyoto

96.5%

98.2%

1.7pt

312

Universal Tower

87.3%

96.7%

9.4pt

641

Universal City

85.1%

98.2%

13.1pt330

Kyobashi

96.1%

97.4%

1.3pt

214

Sapporo

96.1%

94.9%

-1.2pt200

Asakusa

96.3%

96.7%

0.4pt

178

84.2%

91.7%

7.5pt

171

Kyoto Tower Hotel

97.2%

96.2%

-1.0pt162

Kyoto Dai-ni Tower Hotel

96.0%

98.0%

2.0pt

303

Kyoto Tower Hotel Annex

98.3%

98.3%

0.0pt

122

Kyoto Century Hotel

91.8%

74.9%

-16.9pt

221

Total

－

－

－

3,169

Hotel
KeihanBiwako Hotel
Kyoto
Tower

Number ofrooms

Change* Hotel Keihan Temmabashi, Hotel Keihan Kyoto, Hotel Keihan Universal Tower, and Kyoto Century Hotel have been renovated. (Renovation is underway for some of the hotels.)10Non-consolidated Statements of Income(Millions of yen)
1H
FY2015Results

1H
FY2016
Results

Operating revenue

40,883

Railway

ChangeChange(%)

44,681

3,798

9.3%

26,28327,075792

3.0%

Subsidiary business

14,59917,605

3,005

20.6%

Real estate sales

5,048

8,411

3,363

66.6%

Real estate leasing service

7,994

7,411

-583

-7.3%

Leisure

1,557

1,783

225

14.5%

Operating income

9,051

10,597

1,546

17.1%

Railway

4,188

4,793

605

14.4%

Subsidiary business

4,862

5,804

941

19.4%

Real estate sales

589

1,579

990

168.1%

4,075

3,987

-87

-2.2%

197

236

38

19.6%

Real estate leasing service

LeisureOrdinary income

Net income

9,111

6,362

10,429

7,697

1,318

1,334

11

April 2015
Estimate

Main factors of changes

42,800
Number of passengers
Passenger transportation revenue

+2.8%
+2.9%

Sales of condominium buildings+3,540

Number of visitors to Hirakata Park

+9.8%

8,800

14.5%

Non-operating income(Dividend income
Non-operating expenses(Interest expenses
Miscellaneous expenses

+143
+174)
+372
-120
+492)

8,900

21.0%

Extraordinary income+285(Gain on sales of fixed assets+261)
Extraordinary losses+18(Reduction entry of land contribution for construction
+15)

6,700

FY2016 Forecasts

Forecast of Consolidated Business Results(Millions of yen)

FY2015Results

FY2016
Forecast

Operating revenue

294,906

299,600

4,693

Operating income

29,43728,200Ordinary income

27,435

Profit attributable to owners ofparentChange(%)

Main factors of changes

April 2015
Estimate

1.6%

Transportation +1,658, Real estate -354,
Retail +2,799, Leisure and service +1,038

287,000-1,237-4.2%

Transportation +313, Real estate -1,652,
Retail -661, Leisure and service +900

22,00024,700-2,735-10.0%

Non-operating income -909,
Non-operating expenses +589

18,60017,864

19,200

1,335

7.5%

Extraordinary income -13,337,
Extraordinary losses -17,473

14,800Capital expenditure

15,87845,20029,321of capital expenditure>184.7% <Breakdown
Transportation
13,000 （+1,398）

48,200Depreciation

17,107

17,600492

2.9%

EBITDA

46,54545,800

-745

-1.6%

Interest-bearing debt

311,010319,400

8,389

2.7%

Interest-bearing debt/
EBITDA multiple (Times)

6.68

6.97

0.29

－

Net interest-bearing debt/
EBITDA multiple (Times)

6.11

6.65

0.54

－

Change13

Real estate
9,900 （+7,548）
Retail
2,600 （+1,916）
Leisure and service 4,900 （+3,676）
Corporate, etc.
14,800 （+14,781）<<Main capital expenditure for FY2016>>(Transportation)
Investment on our railway
8,739(Real estate)
Investment on our real estate 9,036

17,60039,600334,000
8.43
7.99

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

FY2015Results

FY2016
Forecast

Operating revenue

294,906

299,600

4,693

1.6%

Transportation

90,34192,000

1,658

1.8%

Railway +1,658, Bus +102

89,900Real estate

89,454

89,100

-354

-0.4%

Real estate sales-1,756,
Real estate leasing service +953

81,400Retail

98,200101,000

2,799

2.9%

Store +1,506, Shopping mall management +66,
Department store -712, Other +1,691

101,000

Leisure and service

29,76130,800

1,038

3.5%

Hotel +1,020, Leisure +56

27,600

Others

1,707

1,700

-7

-0.4%

1,800

Elimination-14,559-15,000-440－-14,700

Operating income

29,43728,200-1,237-4.2%

22,000Transportation

8,086

8,400

313

3.9%

Real estate

14,752

13,100-1,652Retail

3,161

2,500

Leisure and service

3,299

OthersElimination

Change(%)

ChangeMain factors of changes

April 2015
Estimate

287,000

Bus +203, Railway +134

6,700

-11.2%

Real estate sales -841,
Real estate leasing service -809

11,000-661-20.9%

Department store -571,
Shopping mall management -54, Store +20

2,500

4,200

900

27.3%

Hotel +818, Leisure +63

1,800

-4

0

4

－

0

142

0

-142

－

0

Note: Effective from 1Q FY2016, Biomarket Co., Ltd. has been transferred from the “Others” segment to the “Retail” segment due to a change in segment classification.
Figures for FY2015 (ended March 2015) and estimates as of April 2015 have been adjusted to reflect this change in segment classification in order to facilitate comparison.

14

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

FY2015Results

FY2016
Forecast

ChangeChange(%)

April 2015
Estimate

Main factors of changes

Operating revenue

86,342

88,200

1,857

2.2%

84,500Railway

52,67553,970

1,294

2.5%

Subsidiary business

33,66634,230563

1.7%

31,670Operating income

16,512

16,100

-412

-2.5%

14,000Railway

7,301

7,450

148

2.0%

6,390

Subsidiary business

9,210

8,650

-560

-6.1%

7,610

Ordinary income

15,211

14,600

-611

-4.0%

Net income

9,250

10,500

1,249

13.5%

Number of passengers
Passenger transportation revenue

Non-operating income
Non-operating expenses
Extraordinary income
Extraordinary losses

+2.2％
+2.4％

+177
+376
-17,873-19,083<< Forecast of operating results for transportation (Keihan Electric Railway) >>Number of passengers(Thousands of people)
FY2015Results

Passenger transportation revenue(Millions of yen)

FY2016
Forecast

ChangeChange(%)

FY2015Results

FY2016
Forecast

ChangeChange(%)

Non-commuter
passes144,509148,959

4,449

3.1%

33,59334,553959

2.9%

Commuterpasses136,279

137,990

1,710

1.3%

15,831

16,052

220

1.4%

Total

280,788286,949

6,160

2.2%

49,42550,605

1,179

2.4%

15

52,83012,6009,100

TOPICS

Progress of FY2016 Initiatives

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 creationof sightseeing opportunities

Continuous measures to revitalize railway
transportation toward regaining the gloryof railway transportation

Revitalize the areas along the Keihan
Railway lines−−efforts to redesign theareas along Keihan Railway lines

Real estate business as the engine of thegroup’s growth

Create contents to enhance the “value ofliving”

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

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

Hotel and leisure businesses to createsightseeing opportunities

17

Proceeds from Transporting Passengers

Increase --- Purchaseprior to the consumption
tax hike

Increase --- Renewal of KUZUHA
MALL
Decrease --- Decrease as a reaction
to the previous year’s purchaseprior to the consumption tax hikeCompared tothe previous
year

+2.4％

Group Companies’ Railway Business◆ Income Increase for the Third Consecutive
Fiscal Year EstimatedIncrease in the number of sightseers heading toward Kyoto
Increase in the number of passengers getting on and off at
Fushimi-Inari Station(Increase in the number of visitors to the Fushimi Inari Taisha
Shrine)Increase in the number of passengers getting on and off at Uji
Station(Completion of the Heisei Repair of Hoo-do Hall [nationaltreasure] of the 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 (FY2016)18(First Half of FY2016, compared to the previous year)
Eizan Electric Railway Co., Ltd.
Proceeds from transporting passengers: up 5.9%
Keifuku Electric Railroad Co., Ltd.
Proceeds from transporting passengers: up 8.8%

Response to Foreign Travelers to Japan
Introduce an even wider variety of special tickets◆ KYOTO-OSAKA SIGHTSEEING PASS
/KYOTO SIGHTSEEING PASS

◆ Uji/Fushimi 1-day Ticket
Enable visitors to have unlimited
rides for one day on the Keihan
Railway lines running in areas
where the Fushimi Inari Taisha
Shrine, the Byodoin Temple, andother renowned structures
popular among foreign travelers
to Japan are locatedSell sightseeing passes for foreign
travelers to Japan to have unlimited
rides on Keihan Railway lines
Provide such passes together withcoupons that can be used not only at thegroup’s various facilities, including
Kyoto Tower, but also at shrines andtemples located along Keihan Railway
lines

Expanded the scope of the valid
areas last year, resulting in athree-fold increase in sales
Increase sales among foreign travelers to Japan, by selling such passes at Kansai Tourist Information Centers (in Kansai International
Airport, Shinsaibashi, and Kyoto), which are facilities for foreign travelers to Japan, and also at the group’s hotels, as well as byimplementing product designs to further accommodate such travelers’ needs

Measures to improve services fortravelers

Effects on the Keihan Group’s
companies(First Half of FY2016, compared to the previous year)

Introduce the KYOTO Wi-Fi, a service provided by Kyoto
CityKyoto Regular Tour Bus
Number of passengers on courses for foreign travelers --- up
48.7%

Allocate a number to each station with consideration given
to foreign visitors to Japan

Osaka Aqua-Bus (Santa Maria)
Number of foreign travelers to Japan --- up 37.6%

Install many more signboards in four languages at stations

19

Hotel Business
Hotel business: operating revenue and operating income(Millions of yen)

(Millions of yen)

（ ％）28,000

（ ％）
18.0

5,000

25.0

16.0
4,000
26,000

14.0

20.0

12.0
3,000
10.0
24,000

15.0

8.0
2,000
6.0
22,000

10.0

20,000

5.0
2011

2012

2013

2014

2015
(Estimate)

Operatingrevenue

4.0

1,000

2.0

Percentage
of inboundtravelers

0

0.0
2011

2012

2013

2014

OperatingincomeOperatingincomepercentage

2015(Estimate)*The FY2016 percentage of inbound travelers only indicates the result for the
first half of FY2016

Measures taken to enhance our earning power◆ Reinforced our competitive edge throughrenewal◆ Enhanced our earning power through thegroup’s synergy

Full renewal of guest rooms at Hotel Keihan Kyobashi(February 2014)

Introduced the common online reservation system and online
membership system throughout the Keihan Group’s hotels

Renewal targeted for family guests at Hotel Keihan
Universal City (March 2014)

Reinforced our revenue management
Established the Integrated Procurement Center for the KeihanGroup’s Hotels

Similar efforts to be made in the future at other hotels as
well

20

Continuous measures to revitalize railway transportation
toward regaining the glory of railway transportation
Provide high-quality services in pursuit of comfort and convenience◆ Introduce the Keihan Express Premium Car(provisional name)Special car with reserved seats for Keihan express trains of the 8000 series
Enable both commuters and sightseers to take seats without fail, andprovide them with an even higher-quality transportation environment
Investment amount: Approx. 1.6 billion yen
Introduction: First half of FY2018 (scheduled)
Convert one of the 10 cars constituting an express train of the 8000 series(i.e., convert the No. 6 car)Characteristics (planned)• Reserved seats (charged/online reservation)• Reclining seats to be newly developed to provide passengers with
comfortable, personal spaces• Three (2+1)-row seat arrangement in a car converted to have only
one door• Large tables and sockets• Services to beprovided by
special attendants

Express train of the 8000 series

Keihan Express Premium Car (provisional name) (conceptual images)

21

Continuous measures to revitalize railway transportation
toward regaining the glory of railway transportation
Make collaborative efforts in line with measures to create sightseeing opportunities◆ Launched the operation of Sky Bus Kyoto
We launched the operation jointly with Myojo Bus Co. in October 2015.
Operated as a regular tour bus, this is the second Sky Bus of all cities in Japan,
after Tokyo. The two-story open-top bus is expected to serve as a sightseeing
resource that will attract much public attention.
Route (e.g.)
JR Kyoto Station – Nijo Castle – Kinkakuji Temple - Torii Gate of the Heianjingu
Shrine - Kiyomizudera Temple – Kyoto Tower – JR Kyoto Station
Sky Bus Kyoto

Strengthen transportation networks◆ Establish a new station between Katabiranotsuji Station and Tokiwa Station on the
Arashiyama Line of Keifuku Electric Railroad Co., Ltd.
Location: 1-5 Kaminodancho, Uzumasa, Ukyo-ku, Kyoto-shi• A transit to Uzumasa Station on the JR Sagano Line (Sanin Main Line) will
enhance access to World Cultural Heritage sites along the Arashiyama Line,such as Kinkakuji Temple, Ryoanji Temple, and Omuro-Ninnaji Temple,
as well as to JR Kyoto Station.
• Access to the Toei Kyoto Studio Park will be also enhanced.
Establishment: Around the spring of 2016

New station (conceptual image)22

Real estate business as the engine of thegroup’s growth
Continue sales business with the focus on short-term turnover◆ Sell apartments in major cities throughout Japan<The Kyoto Residence Gosho-Minami>
Location: 546 Bishamon-cho, Takeya-cho-agaru, Gokomachi-dori, Nakagyo-ku, Kyoto-shi
Completed: December 2016, 5 above-ground floors, 43 apartments<Fine City Sapporo, The Tower Odori Park>
Location: 7-6-6 Minami-Ichijo-Nishi, Chuo-ku, Sapporo-shi
Completed: February 2017, 31 above-ground floors and 1 underground floor, 116 apartments<Fine City Oji-Kamiya River & Forest>
Location: 1-5-1 Shinden, Adachi-ku, Tokyo
Completed: July 2017, 15 above-ground floors, 319 apartments

Fine City Oji-Kamiya River & Forest (conceptual image)

Make the most effective use of the group’s assets◆ Develop a commercial building in Kyobashi, Chuo-ku, Tokyo
First Cabin Kyobashi (provisional name), a compact hotel,
expected to be housed in the commercial building
Location: 2-7-22 Kyobashi, Chuo-ku, Tokyo
Opening: March 2017, 9 above-ground floors, approx. 230 guest rooms

First Cabin Kyobashi (provisional name),
external appearance (conceptual image)23

Real estate business as the engine of thegroup’s growth
Make the most effective use of the group’s assets◆ Acquired 100% ownership of Osaka Merchandise Mart Corporation
Acquired 100% ownership of Osaka Merchandise Mart Corporation, which used to be an affiliate
February 2015: Additional purchase of the company’s shares (25%)
May 2015:

Additional purchase of the company’s shares (55%)(acquired 100% ownership)

Osaka Merchandise Mart Building
Location: 1-7-31 Otemae, Chuo-ku, Osaka-shi(Directly connected to Keihan Temmabashi
Station)Constructed: August 1969
Outline:22 above-ground floors, 4 underground floors, a
total floor area of 131,415 m2
Wholesale stores, offices,
retail stores/restaurants, exhibition rooms,
conference rooms

Osaka Merchandise Mart Building

Contribute to enhancing the earning power of our real estateleasing service, as well as to revitalizing the areas along the
Keihan Railway lines
Conference room “Grand”

24Retail business to enhance the value of“community” and “living”
Further enhance our in-station shopping business◆ Renewal of Keihan Department Store, Hirakata• Implemented a renewal of the food floor (1st floor) and the fashion floor (1stfloor of the annex), converting them to a sweets & gifts section and a daily
gourmet food section, respectively (September 11)◆ Opening of MUJI com ekimo, Umeda Store

Keihan Department
Store, Hirakata• Began to operate the first small store of MUJI in Osaka Prefecture as ourin-station shopping business, under a license store contract with Ryohin
Keikaku Co., Ltd. (July 17)• Aim to open a multiple number of similar stores mainly in the Kansai region◆ Development of the in-station shopping business at
Shin-Osaka Station• Keihan The Store Co., Ltd.—Obtained a developer business contract for thein-station shopping business at Shin-Osaka Station on the Midosuji Line of
the Osaka Municipal Transportation Bureau(Shopping mall scheduled to be opened in March 2016)

MUJI com
ekimo,
Umeda Store◆ Others<SWEETS BOX>

<Juicer Bar>

• Seibu Ikebukuro Store (September 28)• Echika Ikebukuro Store (October 13)

・Akihabara East-West Free Street Store (July 29)<An3>

SWEETS BOX, Seibu
Ikebukuro Store• Subway Yodoyabashi Store (September 28)

25

Hotel and leisure businesses to createsightseeing opportunities
Raise the quality of our existing hotels in terms of both facilities and contents◆ Attract USJ visitors to our facilities• The number of visitors to USJ is expected to exceed its record high marked in FY2015, mainly due to the
opening of the Harry Potter area.
• The occupancy rates of the Keihan Group’s two hotels near USJ remain high.
Occupancy rates of Hotel Keihan Universal Tower/Universal City

（ ％）
100

(Unit: tens of
thousands of people)

90
80
Opening of the

Universal Tower

70

Harry Potter area

Universal City
60
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep.
2014

(FY)

Source: Based on a wide variety of media reports

2015◆ Reinforce our competitive edge through renewal<Hotel Keihan Universal Tower>• To remain competitive against hotels newly opened near USJ, we have
implemented room renovation (from the 22nd floor to the 30th floor) designed forfamily and group guests, the hotel’s main targets.
• We are planning to implement renovation gradually in and after the next fiscal year
as well, with consideration given to the needs of the hotel’s target guests.
“Deluxe Family,” Hotel Keihan Universal Tower

26

Hotel and leisure businesses to createsightseeing opportunities
Raise the quality of our existing hotels in terms of both facilities and contents◆ Reinforce our competitive edge through renewal<Kyoto Century Hotel>• Full renewal of guest rooms (September 18)• BIO-Style, a concept proposed by the Keihan Group, adopted for the
renewal<Hotel Keihan Kyoto>“Grand Comfort Room,” Kyoto Century Hotel• Gradual renewal of the hotel’s guest rooms, restaurants, front lobby, etc.
(February 2016 [scheduled])• “Superior Floor” (26 rooms) to be newly established on the 13th floor• Nine Japanese-style “Zen Suites” to be newly established on the 3rd floor<Hotel Keihan Temmabashi>• Renewal of all guest rooms (November 1)“View Bath Junior Suite,” Hotel Keihan Kyoto<Biwako Hotel>• First large-scale renewal of guest rooms since the construction of the hotel
in 1998 (October 21)• Opening of the luxury floor, Aqua
“Aqua,” Biwako Hotel27

Hotel and leisure businesses to createsightseeing opportunities
Open more hotels<Hotel Keihan Yodoyabashi (provisional name)>
Location: 2-41-1 Kitahama, Chuo-ku, Osaka-shi
Two-minutes’ walk from Keihan Kitahama Station and fiveminutes’ walk from Yodoyabashi Station
Opening: Summer 2017 (scheduled), 11 above-ground floors, 210 rooms(planned)
Land and structure owner: Toyo Property Co., Ltd.

<Hotel Keihan Tsukiji Ginza (provisional name)>

Hotel Keihan Yodoyabashi (provisional name)(conceptual image)

Location: 3-507-1 Tsukiji, Chuo-ku, Tokyo
Two-minutes’ walk from Tsukiji Station of the Tokyo Metro
Hibiya Line
Opening: Autumn 2018 (scheduled), 14 above-ground floors, 300 rooms(planned)
Land and structure owner: Nakagawa Special Steel Inc.

Aim to open hotels in front of stations in major ordinance-designatedcities, and to directly manage more than 15 hotels in Japan by 2020 Hotel Keihan Tsukiji Ginza (provisional name)(conceptual image)28