The First Half of FY2008 ended September 30, 2007
Financial Results Presentation
November 22, 2007
Keihan Electric Railway Co., Ltd.
(Tokyo Stock Exchange 1st/Osaka Securities Exchange 1st 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.

Contents
Overview of 1H FY2008 Financial Results2

Consolidated Statements of Income

3

Consolidated Balance Sheets

4

Movement of 1H FY20085Trend of Land for Sale (Non-consolidated)

7

Consolidated Statements of Cash Flows8

Trend of Consolidated Interest-Bearing Debt / EBITDA

9

Non-consolidated Statements of Income

10

Overview of 1H FY2008 Business Results by Segment

11

Consolidated-targeted Companies

12

Segment Balance

13

Changes in Segment Balance

15

Segment Movement for 1H FY2008

17

Results of Transportation

18

Results of Real Estate

21

Results of Retail

23

Results of Leisure and Service

25

Results of Others

27

Business Results Forecast of FY2008

29

Forecast of Consolidated Business Results

30

Forecast of Non-consolidated Business Results321Overview of the First Half of FY2008
Financial Results2

Consolidated Statements of Income(Millions of yen)

1H
FY20081H
FY2007

ChangeChange(%)

Operating revenue

127,941

127,778163

0.1

Operating income

9,355

9,634(278)(2.9)

Ordinary income

7,498

7,900(402)(5.1)

Net income

4,182

3,933

248

6.3

EBITDA

17,747

17,390

356

2.1

1H
FY20081H
FY2007

ChangeChange(%)

270,938

267,046

3,892

1.5

Interest-bearing debt
* EBITDA: operating income + depreciation

Interest-bearing debt: Loans + bonds + accounts payable for JRTT3Consolidated Balance Sheets(Millions of yen)

1H
FY2008

1HFY2007

ChangeChange(%)

Total assets

574,520577,967(3,446)(0.6)

Liabilities

437,141

439,032(1,890)(0.4)

Net assets

137,379

138,935(1,555)(1.1)

574,520577,967(3,446)(0.6)

Liabilities and net assets

Main factor of changes in total assets: Decrease in investment securities at market value ,Decrease in notes and accounts receivable,
Increase in fixed assets due to newly consolidated
Kyoto Tower Co. Ltd.
Main factor of changes in liabilities: Decrease in account payable
Main factor of changes in net assets: Decrease in unrealized gains on other securities
4Movement of 1H FY2008 (1)Increase in revenue and net income,decrease in operating income and ordinary income
Operating revenue --- + 163 million yen
Slight increase due to decrease in large condominium
sales and increase in construction material sales

Operating income ---- - 278 million yen
Income decrease due to increase in depreciation

Ordinary income ----- - 402 million yen
Income decrease due to decline in non-operating income

Net income ------------ + 248 million yen
Income increase due to decrease in extraordinary losses

5Movement of 1H FY2008 (2)Measures for improving financial transparency
Increase in depreciation expense due to the revision oftaxation system--- Operating expenses

603 million yen

Allowance for loss due to gift certificate exchange--- Extraordinary losses
168 million yen
Non-operating expenses
7 million yen

6Trend of Land for Sale (Non-consolidated)(Thousands of m2)(Millions of yen)

120,000
Book Value (Millions of yen)
Area (T housands of m 2 )3,000

90,0002,000
60,0001,000

30,0000000.3 01.3 02.3 03.3 04.3 05.3 06.3 07.3 07.9

Land for sale (Millions of yen)
2Area (Thousands of m )

00.3

01.3

02.3

03.3

04.3

05.3

06.3

07.3

07.9

117,755

112,987

78,33367,26063,91559,25950,66045,93444,477

3,180

3,159

3,045

2,754

2,704

2,640

2,238

2,222

2,168

7

Consolidated Statements of Cash Flows(Millions of yen)

1H
FY20081H
FY2007

ChangeChange(%)

Operating cash flows

6,307

18,473(12,166)(65.9)

Investing cash flows（8,225)(8,710)485

5.6

Financing cash flows(287)(7,835)

7,547

96.3

Cash and cash equivalents at end of interim period

24,36817,919

6,449

36.0

Interest-bearing debt* at end of interim period

270,938

266,304

4,633

1.7

Investing cash flows: Decrease in cash out due to increase of received money, such as contributions for construction
Financing cash flows: Decrease in cash out due to procurement of short-term loans* Interest-bearing debt: Loans + bonds + accounts payable for JRTT

8

Trend ofConsolidated Interest-Bearing Debt / EBITDA(Billions of yen)(Times)350
3,500Interest-bearing debt
330
3,300

11

Interest-bearing debt/EBITDA
10310
3,100

9

290
2,900

270
2,700

8

250
2,500

700.3

01.3

02.3

Consolidated Interest-bearing debt (Millions of yen)
EBITDA (Millions of yen)Interest-bearing debt/ EBITDA (Times)

03.3

04.3

05.3

06.3

07.3

07.9

00.3
01.3
02.3
03.3
04.3
05.3
06.3
07.3
07.9
339,715 321,340 312,820 308,704 290,742 285,382 272,433 267,046 270,938
31,496 32,414 29,294 35,828 33,759 34,307 34,893 36,925 17,747
10.89.9
10.7
8.6
8.6
8.3
7.8
7.2
-

* EBITDA = Operating income + Depreciation

9Non-consolidated Statements of Income(Millions of yen)

Operating revenue
Railway operation
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOperating income
Railway operation
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOrdinary income
Net income

1H FY2008

1H FY2007

37,572
27,280
10,292
3,052
5,768
1,471
7,848
4,732
3,115
333
2,763
18
6,599
3,190

36,92427,398
9,526
2,342
5,730
1,452
7,706
5,328
2,378(263)
2,620
21
5,793
2,744

Change648(118)
766
709
38
18142(595)
737
596142(2)805446

Change (%)

1.8(0.4)
8.0
30.3
0.7
1.3
1.8(11.2)
31.0
5.5(11.8)
13.9
16.3

* For passenger transportation income, please refer to “Operating Results for Transportation (Keihan Electric Railway)” on page 20.

10Overview of the First Half of FY2008
Business Results by Segment

11Consolidation-targeted Companies
Scope of Consolidated Accounting
79 companies [Our company, 76 subsidiary companies (including 46 consolidated subsidiaries), and 2 affiliates (including 2 equity method affiliates)](1) Transportation (26 companies)
Bu si n es s co nt e nt s
Railway(4) Leisure and service (30 companies)

C om pany nam e

Bu si n es s co nt e nt s
Hotel

Our company、Eizan Electric Railway Co., Ltd. *1,Keifuku Electric Railroad Co., Ltd. *1, Mt. Hiei Cable Car Co., Ltd.*1、Restaurant

Keihan Station Management Co., Ltd. *1

Keihan Bus Service Co., Ltd. *1, Juicer Bar Corporation Co., Ltd. *1

Keihan Bus Systems Co., Ltd. *1, Keihan Bus Co., Ltd. *1,Sightseeing ship
Amusement park
AdvertisingAutomobile
maintenance service
TouristWelfare for elderly andnursing care
Car road
Golf course

Keihan Kyoto Kotsu Co., Ltd. *1
Keihan Taxi Systems Co., Ltd. *1,Keihan Taxi Co., Ltd. *1, Tsuruga Keihan Taxi Co., Ltd. *1,Kisen Taxi Co., Ltd. *1, Uji Keihan Taxi Co., Ltd. *1,Osaka Keihan Taxi Co., Ltd. *1

Other 7 companies(2) Real estate (10 companies)
C om pany nam e

Keihan Agency Co., Ltd. *1
KT Motors Co., Ltd. *1
Keihan Travel Service Co., Ltd. *1
Keihan Life Support Co., Ltd. *1
Mt. Hiei Driveway Co., Ltd. *1
Kuzuha Public Gold Course Co., Ltd. *1(5) Others (10 companies)

Our company, Keifuku Electric Railroad Co., Ltd. *1,Bu si n es s co nt e nt s
Utility work
Landscaping
Survey and Design
Specific-purpose
financing
Credit card

Keihan Building Co., Ltd. *1, Mikuni Kanko Sangyo Co., Ltd. *1,
Osaka Merchandise Mart Corporation Co., Ltd. *2

Other 4 companies(3) Retail (7 companies)
Bu si n es s co nt e nt s
Department store
Store
Shopping mallmanagement
Construction materialsales

Our company

Other 13 companies（include 1 consolidated subsidiary）Our company, Keifuku Electric Railroad Co., Ltd. *1,Keihan Dentetsu Real Estate Co.,Ltd. *1

Real estate leasing
service

Biwako Kisen Steamship Co.,Ltd. *1,Osaka Aqua Bus Co., Ltd. *1

Kyoto Bus Co., Ltd. *1, Keifuku Bus Co., Ltd. *1,

Bu si n es s co nt e nt s
Real estate sales

Keifuku Electric Railroad Co., Ltd. *1, Keihan Restaurant Co., Ltd. *1,
Biwako Kisen Restaurant Co., Ltd. *1,Kojak Kotsu Co., Ltd. *1, Keihan Uji Bus Co., Ltd. *1,Taxi

Biwako Hotel Co., Ltd.*1, Hotel Keihan Co., Ltd. *1,Kyoto Tower Co., Ltd. *1

Nakanoshima Rapid Railway Co., Ltd.*2

Station servicemanagement
BusCompany nameC om pany nam e
Keihan Department Stores Co., Ltd. *1
Keihan The Store Co.,Ltd. *1

Company nameKeihan Engineering Service Co.,Ltd. *1
Keihan Gardening Co., Ltd. *1
Kanko Co., Ltd. *1, Soil Engineering Co., Ltd. *1
Keihan Financial Management Co., Ltd. *1
Keihan Card Co., Ltd. *1

Other 4 companies

Keihan Ryutu Systems Co., Ltd. *1
Keihan Sangyo Co., Ltd. *1(As of September 30, 2007)

Other 3 companies
1.
2.
3.
4.

*1 Consolidated subsidiaries *2 Equity method affiliates
In the above numbers, our company and Keifuku Electric Railroad Co., Ltd. are redundantly included.
Of the consolidated subsidiaries, Keifuku Electric Railroad Co., Ltd. is listed on the second section of the Osaka Stock Exchange.
Kyoto Tower Co., Ltd., which has so far been one of the affiliated companies accounted for using the equity method, became a consolidated company at theend of the current interim term due to additional purchase of the company’s share.

12

Segment Balance (1)<Operating revenue>
Leisure and service(Millions of yen)

Others

1,825
15,047 1.4%
11.8%

Transportation
43,008
33.6%

57,62345.0%

10,437
8.2%

RetailReal estate* Operating revenue for external customers

13Segment Balance (2)<Operating income>
6,000(Millions of yen)

5,090

5,000
4,000

3,654

3,000
2,000

725

1,000
0364-482-1,000T ransportation

Real estate

Retail14

Leisure andservice

OthersChanges in Segment Balance (1)<Operating revenue>(Millions of yen)

60,00050,00040,00030,00020,000Transportation
Real estate
RetailLeisure and service
Others

10,00001H FY01 1H FY02 1H FY03 1H FY04 1H FY05 1H FY06 1H FY07 1H FY0815

Changes in Segment Balance (2)<Operating income>(Millions of yen)

7,000
6,000
5,000
4,000
3,000
2,000

Transportation
Real estate
RetailLeisure and service
Others1,0000-1,000
1H FY01 1H FY02 1H FY03 1H FY04 1H FY05 1H FY06 1H FY07 1H FY08

16

Segment Movement for 1H FY2008[Transportation]<Revenue decrease of 148 million yen, and income decrease of 568 million yen>
Railway operation --- declining birthrate and opening of the competing railway.
Bus --- Decline in passenger volume.

[Real estate]<Revenue decrease of 2,958 million yen, and income increase of 667million yen>
Real estate sales --- Number of condominium sales has decreased.
Increase in sales of high-margin residential areas.

[Retail]<Revenue increase of 4,227 million yen, and income decrease of 316 million yen>
Department store --- fiercer competition.
Construction material sales --- Number of sales has increased.

[Leisure and service]<Revenue decrease of 231 million yen, and income increase of 14 million yen>
Restaurant --- Liquidated a consolidated subsidiary at the end of the previous term.
Welfare for elderly and nursing care --- Increase in users.

[Others]<Revenue decrease of 369 million yen, and income decrease of 88 million yen>
Utility works---Decrease in amount of completed work.

17

Results of Transportation (1)<Business results>(Millions of yen)

1H
FY20081H
FY2007

ChangeChange(%)

43,92244,071

(148)

(0.3)

Railway operation

28,89428,925(30)(0.1)

Station service
management

2,645

2,678(33)

(1.2)

Bus

12,656

12,646

10

0.1

Taxi

2,756

2,766(9)(0.3)

Elimination(3,030)(2,944)(85)−

Operating income

5,090

5,659(568)(10.0)

Operating revenue

18

Results of Transportation (2)<Trend of operating revenue>(Millions of yen)

40,00030,00020,000Railway operation
Station service
managementBus

10,000Taxi

0
1H FY01 1H FY02 1H FY03 1H FY04

1H FY05 1H FY06 1H FY07 1H FY08

19

Results of Transportation (3)<Operating results for transportation (Keihan Electric Railway)>
Number of passengers(Thousands ofpeople)

Change1H FY2008

1H FY2007

Change (%)

146,512148,309(1,797)(1.2)

Commuter passes(ditto)75,887

78,119(2,232)(2.9)

Non-commuter passes(ditto)70,62470,189434

0.6(Millions of yen)

25,64625,834

(187)

(0.7)

Passenger fare(ditto)25,64625,833

(187)

(0.7)

Commuterpasses(ditto)8,886

9,133(247)(2.7)

Non-commuterpasses(ditto)16,76016,70059

0.4

Carriage on parcels(ditto)

00(0)

(1.9)

Miscellaneoustransportation revenue(ditto)

1,633

1,564

69

4.4

Total

(ditto)27,28027,398

(118)

(0.4)

Passenger
transportation
revenue
Transportation revenue

20Results of Real Estate (1)<Business results>(Millions of yen)

1HFY2008

1HFY2007

ChangeChange(%)

14,38917,348(2,958)(17.1)

Real estate sales

7,222

10,327(3,104)(30.1)

Real estate leasing service

7,734

7,699

35

0.5

Elimination

(567)

(678)

110

-

Operating income

3,654

2,986

667

22.3

Operating revenue

21

Results of Real Estate (2)<Trend of operating revenue>(Millions of yen)

15,00012,000

9,000

6,000

Real estate sales

3,000Real estate leasing
service0
1H FY01 1H FY02

1H FY03 1H FY04

1H FY05 1H FY0622

1H FY07 1H FY08

Results of Retail (1)<Business results>(Millions of yen)

1H
FY2008

1HFY2007

Change57,85853,6304,227

7.9

Department store

26,311

27,129(817)

(3.0)

Store

14,373

14,27597

0.7

Shopping mall management

5,200

5,207(6)(0.1)

Construction material sales

13,667

8,359

5,307

63.5

Elimination(1,693)(1,341)(352)-Operating income

364

680

(316)

(46.5)

Operating revenue

23

Change(%)

Results of Retail (2)<Trend of operating revenue>(Millions of yen)

30,00025,00020,00015,000Department store

10,000Store
Shopping mallmanagementConstruction materialsales

5,00001H FY01 1H FY02 1H FY03 1H FY04 1H FY05 1H FY06 1H FY07 1H FY0824

Results of Leisure and Service (1)<Business results>(Millions of yen)

Change1H FY2008

1H FY2007

15,716

15,948(231)

(1.5)

Hotel

5,160

5,277(117)(2.2)

Restaurant

4,297

4,402(104)(2.4)

Sightseeing ship

1,551

1,575(23)(1.5)

Amusement park

1,471

1,452

18

1.3

Advertising

1,075

1,021

53

5.2

Automobile maintenance service

1,024

1,147(123)(10.7)

Tourist441

43741.0

Welfare for elderly and nursing care

491353137

38.9

Car road333397(63)(16.0)

Golf course

231

222

83.9

Elimination(361)

(341)

(20)

-Operating income

725

710

142.0

Operating revenue

25

Change (%)

Results of Leisure and Service (2)<Trend of operating revenue>(Millions of yen)

7,000
6,000
5,000
Hotel

4,000

Restaurant
Sightseeing ship
Amusement park

3,000

Automobile maintenanceservice
Advertising

2,000

TouristWelfare for elderlyand nursing care
Car road

1,000

Golf course

01H FY01 1H FY02 1H FY03 1H FY04 1H FY05 1H FY06 1H FY07 1H FY0826

Results of Others (1)<Business results>(Millions of yen)

1H FY2008

1H FY2007

Operating revenue

3,827

4,196(369)(8.8)

Utility work

2,346

2,837

(491)

(17.3)

Landscaping

554

694

(140)

(20.2)

Survey and design

778

829

(51)

(6.2)

Specific-purpose financial
service

9676

2026.8Credit card

403

319

83

26.1

Elimination

(351)

(560)

209

-

Operating income

(482)

(393)

(88)

-27

ChangeChange (%)

Results of Others (2)<Trend of operating revenue>(Millions of yen)

4,000

3,000

2,000
Utility work
Landscaping
Survey and design
Specific-purpose
financial service
Credit card

1,00001H FY01

1H FY02

1H FY03

1H FY04

1H FY0528

1H FY06

1H FY07

1H FY08

Business Results Forecast of FY2008

29FY2008

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

FY2008
ForecastFY2007
ResultsChange

Operating revenue

257,000

267,273(10,273)(3.8)

Operating income

15,50021,227(5,727)(27.0)

Ordinary income

11,50017,375(5,875)(33.8)Net income

7,800

7,841(41)(0.5)

EBITDA32,800

36,925(4,125)(11.2)

Capital expenditures

21,79315,806

5,986

37.9

Interest-bearing debt

275,800

267,046

8,753

3.3

8.4

7.2

1.2

Interest-bearing debt / EBITDA**Interest-bearing debt: Loans + bonds + accounts payable for JRTTInterest-bearing debt / EBITDA: Interest-bearing debt / (operating income + depreciation)

30

Change (%)

FY2008

Forecast of Consolidated Business Results (2)<By segment>
Operating revenue
Transportation
Real estate
RetailLeisure and service
OthersElimination
Operating income
Transportation
Real estate
RetailLeisure and service
OthersElimination
Ordinary income
Net income(Millions of yen)

FY2008
Forecast
257,000
87,30031,300110,600
32,500
10,200(14,900)
15,500
8,000
6,700
700
400
(200)
(100)
11,5007,800

FY2007
Results
267,273
87,817
41,522
111,783
30,055
11,494(15,400)
21,227
10,336
9,217
1,366
280
18
7
17,3757,841
31

Change(10,273)(517)(10,222)(1,183)2,444(1,294)500(5,727)(2,336)(2,517)
(666)
119
(218)
(107)
(5,875)(41)

Change (%)
(3.8)
(0.6)
(24.6)(1.1)
8.1(11.3)(27.0)(22.6)(27.3)(48.8)
42.5(33.8)(0.5)

FY2008

Forecast of Non-consolidated Business Results (1)(Millions of yen)

FY2008
Forecast
Operating revenue
Railway operation
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOperating income
Railway operation
Subsidiary business
Real estate sales
Real estate leasing service
LeisureOrdinary income
Net income

74,10054,52019,5805,720
11,4602,400
12,880
7,920
4,960
300
5,090
(430)
9,860
5,340
32

FY2007
Results

82,64854,60528,042
14,119
11,5752,346
17,263
9,837
7,425
2,614
5,212
(400)
13,576
4,476

Change(8,548)(85)(8,462)(8,399)(115)
53(4,383)(1,917)(2,465)(2,314)(122)(29)(3,716)864

Change (%)(10.3)(0.2)(30.2)(59.5)(1.0)
2.3(25.4)(19.5)(33.2)(88.5)(2.3)(27.4)
19.3

FY2008

Forecast of Non-consolidated Business Results (2)<Operating results for transportation (Keihan Electric Railway)>
FY2008
Forecast
Number of passengers

FY2007
Results

ChangeChange (%)

Transportation revenue(Thousands of people)

290,229291,712(1,483)(0.5)

Commuter passes(ditto)146,023

150,480(4,457)(3.0)

Non-commuter passes(ditto)144,206

141,231

2,974

2.1

（Millions of yen)

51,221

51,361

(140)

(0.3)

(ditto)51,22051,360

(140)

(0.3)

Commuter passes(ditto)16,982

17,754

(772)

(4.4)

Non-commuter passes(ditto)34,23833,605632

1.9(ditto)

1

1

0

17.1

Miscellaneous transportation
revenue(ditto)

3,299

3,244

54

1.7

Total

(ditto)54,52054,605

(85)

(0.2)

Passenger
transportation revenue
Passenger fare

Carriage on parcels

33