November 13, 2009 Keihan Electric Railway Co., Ltd. (Tokyo Stock Exchange 1st/Osaka Securities 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 FY2010 Financial Results
* EBITDA Operating income    depreciation [Changes in scope of consolidation and application of the equity method] Consolidated subsidiaries: 43 companies (-2 companies  Keihan Fukui International Country Co., Ltd., Soil Engineering Co., Ltd.) 2 companies (No changes) Equity method affiliates: Changes in accounting method Application of "Accounting Standards for Construction Work Contract" (There was no effect on income and losses.) 2
*Interest-bearing debt:  Loans + bonds +accounts payable for Japan Railway Construction, Transport and Technology Agency (JRTT) 3
(Millions of yen)
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(Billions of yen) (Times)
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<Operating results for transportation (Keihan Electric Railway)>

<<Operating income by business>>

<<Main condominium buildings for sale>> N4. TOWER Nakanoshima 4-chome, Kita ward, Osaka city) Fine Residence Yokohama Katakura Park Premier (Kanagawa ward, Yokohama city) Keihan East Rose Town Fine Garden Square (Kyotanabe city and Yawata city, Kyoto) <<New leasing properties>> September 2008 Keihan Dojima Building March 2009 September 2009 (Kita ward, Osaka city) Keihan Otemachi Building (Chiyoda ward, Tokyo) INTAGE Akihabara Building (Chiyoda ward, Tokyo)
<<New properties>> November 2008  Kiki Kyobashi (Miyakojima-ward, Osaka city) July 2009 UNIQLO Keihan Hirakata Store (Hirakata city, Osaka) August 2009 UNIQLO Namba Walk Store (Chuo ward, Osaka city) 10

<<New properties>>
May 21, 2008 Hotel Keihan Universal Tower June  6, 2009 Hotel Keihan Sapporo November 21, 2009 Hotel Keihan Asakusa planned November 1, 2009 Rose Life Takanohara 11
12 Business Results Forecast of FY2010

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< Operating results for transportation (Keihan Electric Railway) >

< Operating results for real estate >

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17 TOPICS Overview of Nakanoshima Line
The total project cost is set to approx. ¥130 billion, with approx. ¥20 billion cut from the initial budget of ¥150.3 billion. [Business plan ] [Funding plan ] Estimated distribution amount of ¥130.0 billion Operation of railway business: Keihan Electric Railway Co., Ltd. Construction and possession of facilities: Nakanoshima Rapid Railway Co., Ltd. * Railway usage charge: Based on the amount for reimbursement of the debt loan principal and payment of the interest, and payment for taxes and public dues, and general and administrative expenses.

Evaluation of Nakanoshima Line
Efforts and branding coupled with the town development were evaluated. ●  Osaka Katsuryoku Grand Prix in 2008 (Host: Osaka Chamber of Commerce and Industry) ●  Kansai Business Community Seminar Award 2009 “Grand Prize” (Host: Kansai Association of Corporate Executives) ● Kansai Vigorous Cultural Zone Award “New Power Award” ●  Laurel Prize 2009 (Host: Japan Rail Fan Club) ●  Good Design Award in 2009 (3000 series, 4 stations in Nakanoshima Line) ●  2009 Japan Mecenat Awards Award Granted by the Commissioner for Cultural Affairs (the Agency for Cultural Affairs of Japan) (Art Area B1)

Results of Nakanoshima Line
• The number of passengers per day is currently approx. 30,000, which represents approx. 40% of our initial expectation. • The transportation revenue from the Nakanoshima Line alone is expected to be approx. ¥0.8 billion (*excluding the ripple effect to Keihan main line) for the current fiscal year. (Factors) • Transition from existing lines (Yodoyabashi Station and Kitahama Station) is low. • There are few passengers who have decided to change from other company lines (JR lines, subways and others) because the opening of the Nakanoshima Line is not yet well known to the public. • The rapid business recession that started just after the Line opened has decelerated the activities of people in the Nakanoshima area. • Lagging project development (Osaka Museum of Modern Art (Tentative name), etc.) •  Revenue from non-commuter passes tends to vary with public events. • Revenue from commuter passes tends to increase slowly.
Efforts toward increasing the number of passengers (Measures for creating
demand)
• Collaboration with various events. • Strengthening tie-ups with customer-attracting facilities in the Nakanoshima area. • Improving the image of Nakanoshima and fortifying PR activities to increase the number of passengers from Kyoto. • Promoting the usage of commuter passes for companies along the Nakanoshima Line.
Effect of collecting customers by holding various events
''The Louvre Museum Exhibition''(June 23 to September 23    Number of visitors: 280 thousands) Cirque Du Soleil “Corteo” (July 29 to October 18 Number of visitors: 360 thousand) “Aqua Metropolis Osaka 2009” (August 22 to October 12    Number of visitors: 1,900 thousand) Events to be held “OSAKA Hikari Renaissance” “Renoir Exhibition” (December 1 to 25, 2009 Last year's number of visitors: 1,380,500 (April 17 to June 27, 2010
Efforts toward securing stable profits
• Establishment of business systems responding to the decreasing population • Efforts toward reviewing and rearranging businesses

Medium- to long-term efforts
Promoting redevelopment projects of Nakanoshima 4-chome area Promoting new employees to reside in Keihan domain area along with the development of Nakanoshima area Promotion of town-developing in cooperation with other surrounding companies or governments Opening of Nakanoshima Line has promoted a variety of development projects conducted through mutual cooperation between the government and private companies. Asahi Shimbun Group Cooperative development by Keihan and Obayashi in Nakanoshima Scheduled opening    FY2013 ground Number of units for sale  343 Number of residents Approx. 600 Move-in day  September 2009 Nakanoshima Banks Scheduled opening: Spring 2010 (Shin-Osaka to Namba and Shiomibashi) NAKANOSHIMA DAIBIRU NAKANOSHIMA DAIBIRU WEST Completion (Planned): Spring 2013 Completion  March 2009 Completion image 23 Progress of ATTACK 2011
ATTACK 2011(FY2010 – FY2012) Basic Concept “Build up a Robust Management Base” capable of conquering the difficulties and “Realize the Growth for Our Vision” as early as possible. Enforcement of Business Base (Defense)
Promotion of efficiency measures
• Establishment of zero-based full-scale efficiency systems •  Reviewing the operating systems of hotels, etc. Distinction, elimination and consolidation of business •   Liquidation of Soil Engineering Co., Ltd. (begun on April 30 and completed on August 5) • Assignment of the shares of Keihan Fukui International Country Co.,Ltd. (August 26) • Merger by absorption of Keihan Building Co., Ltd. and Keihan Bus Systems Co., Ltd. (October 1) Realization of Growth (Offense) Establishment of future revenue base - Expansion of real-estate leasing service • Acquisition of Keihan Otemachi Building (March 30) • Acquisition of trust beneficiary right of INTAGE Akihabara Building (September 18) Expansion of retail and hotel businesses • Opening inner station shops in the area outside our domain • Hotel Keihan Sapporo (opened on June 6) • Hotel Keihan Asakusa (to be opened on November 21)

Efforts toward safety
Promotion of establishing the overhead crossing near Yodo Station Elevating the railway and developing the station square in cooperation with Kyoto City and Japan Racing Association September 12: The line (for Osaka) was elevated and an exclusive path connecting the entrance gate of the platform with the Kyoto race track and the second floor of the station was opened. (Outline of construction) Length of railway zone to be constructed:  Approx. 2 km (Of which, the elevated zone is 1.47 km in length.) Number of railway crossings to be removed: 3 Total project cost: Approx. ¥28 billion (Our financial burden: ¥5.6 billion) Schedule:   September 2009: Elevation of the railway for Osaka May 2011: Elevation of the railway for Kyoto, and removal of railway crossings
Measures for creating demand
Promotion of sightseeing in Kyoto and Otsu Opening new bus lines Keihan Kyoto Kotsu Co., Ltd.: Miyama Nature bus (on Saturdays, Sundays and national holidays from September 19 through November 29) Keihan Bus Co., Ltd.: Opening of the through line bus from JR Matsui-Yamate Station to JR Kyoto Station (November 1)
Efficiency measures
Reviewing of train schedule, vehicle operation, and crew operation system
Real estate Acquiring new high-quality leasing buildings Keihan Otemachi Building (March 30) Acquisition of trust beneficiary right of INTAGE Akihabara Building  (September 18) Location: 5 minute walk from JR Akihabara Station Office building and high-quality leasing residence Usage: Building scale:   19 floors above ground and two floors underground Total floor area: 19,707.86 m² Completion: October 2005 Retail Inner station shop (Opened in the area outside our domain) UNIQLO retail stores (July 24) Keihan Hirakata Store Namba Walk Store (August 28) Nankai Namba Station Store  (October 16) SWEETS BOX shops JR Kyoto Station Shop Nankai Namba Shop (April 23) (October 15)
Leisure
Opening new superior business hotels 200 rooms (opened on June 6) Hotel Keihan Sapporo 178 rooms Hotel Keihan Asakusa (to be opened on November 21) Development of nursing care business Day-care facility for the elderly (Fourth facility) Moriguchi Day Service Center (May 1) Fee-based nursing home (Second facility) Rose Life Takanohara   138 rooms (November 1)