First Half of FY2020 (Ended September 30, 2019) Financial Results Presentation November 19, 2019 Keihan Holdings Co., Ltd. (Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.co.jp/) Table of Contents Summary of Consolidated Financial Results and … 2 Forecasts Progress Status of Medium-Term Management Plan … 4 “Create Living, Community, and Excitement” Overview of the First Half of FY2020 Financial Results … 19 FY2020 Forecasts … 30 ◆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. Actual results may differ due to various factors that may arise in the future. 1 Summary of Consolidated Financial Results and Forecasts 2 Summary of Consolidated Financial Results and Forecasts (Millions of yen) 1H FY2020 1H FY2020 1H FY2019 Change Change 1H FY2020 Results Results Results (projections released in May) 12,362 5,809 Operating revenue 165,209 152,846 159,000 (8.1%) (3.6%) 4,954 4,469 Operating income 21,969 17,014 17,500 (29.1%) (25.5%) 5,138 4,635 Ordinary income 21,435 16,297 16,800 (31.5%) (27.6%) Profit attributable to 4,205 2,954 15,154 10,949 12,200 owners of parent (38.4%) （24.2%) (Millions of yen) FY2020 (full-year FY2020 full-year FY2019 full-year FY2020 full-year forecasts Change forecasts Change forecasts results released in May) -1,159 -1,700 Operating revenue 325,000 326,159 326,700 (-0.4％) (-0.5％) 584 2,300 Operating income 34,300 33,715 32,000 (1.7％) (7.2％) 991 2,600 Ordinary income 33,100 32,108 30,500 (3.1%) (8.5%) Profit attributable to 1,519 1,000 owners of parent 23,000 21,480 22,000 (7.1%) (4.5%) 3 Progress Status of Keihan Group’s Medium-Term Management Plan “Create Living, Community, and Excitement” 4 Overall structure of the long-term strategic concept Keihan Group’s long-term Management vision strategic concept “Be the beautiful Keihan areas and the global Keihan group” Long-term management strategy Main strategies Redevelop Medium-term Keihan areas management plan 沿線再耕Co-create tourism opportunity “Create Living, Community, 観光共創 Create relatable contents and Excitement” 2018 2019 2020 2021 2022 2023 2024 2025 2026 Opening of IR (Integrated Resort) G20 Osaka Summit in Yumeshima, Osaka (planned) Major Rugby World Cup events/ Opening of USJ’s new area “SUPER NINTENDO WORLD™” Expo 2025 Osaka, Kansai projects Tokyo 2020 Olympic Games World Masters Games Kansai Transporta- Full opening of the Shin-Meishin Expressway Opening of the Naniwasuji Line (2031) tion Extension of the Osaka Metro Chuo Line network Extension of the maglev “Chuo Shinkansen” to Osaka (2037) *Includes planned projects 5 Overview of the long-term management strategy The main strategies carried out by the Keihan Group toward FY2027 Theme Basic policy Priority measures Redevelop Make the areas along the Keihan Railway Regain the glory of Osaka’s east to west lines beautiful through urban revitalization axis and carry out community building Keihan areas with railway stations at the core starting from railway stations Co-create Create tourism opportunities with the Strengthen tourism and inbound business tourism community and promote global exchange mainly in Kyoto opportunity Create products, services, Create relatable BIOSTYLE and businesses that customers -Aim for Keihan as First Choice- contents can relate to Preparations for the management vision Create area portfolios Promote innovations with an eye to the next generation Focus on business development in Kyoto and contribute Create services and improve productivity by utilizing ICT to the re-creation of Kyoto technologies Expand business to outside the areas along the Keihan Promote new businesses Railway lines (domestic and overseas growth markets) 6 Create relatable contents BIOSTYLE-Aim for Keihan as First Choice- Opening of the GOOD NATURE STATION Hotel (4F–9F) • The guest rooms feature an BIOSTYLE is a new lifestyle proposed by the Keihan interior focused on natural wood, Group, aimed at achieving a healthy, beautiful, and as well as lights that automatically adjust their brightness in high-quality life and contributing to a recycling-oriented accordance with biological rhythm. society. • No. of guest rooms: 141 (120 twin In recent years, there has been a new trend in rooms and 21 double rooms) consumers’ lifestyles focused on health, ethics and Studio (3F) values. In light of this, the GOOD NATURE STATION • Houses a comprehensive beauty salon themed with “vitality” will open on December 9, 2019 in Shijo-Kawaramachi, and “rejuvenation” and a shop area Kyoto City as a facility that embodies BIOSTYLE with handling cosmetic-related items. food, beauty and accommodation. • We will enter the SPA business to develop unique brands and products. To Demachiyanagi Gastronomy (2F) Kyoto Kawaramachi Sta. Hankyu Railway Shijo-dori • The “premium gastronomy floor” Kyoto Marui where customers can have a special dori - Kamo Takashimaya, River Kyoto store eating experience, feeling the four Takase Takase River GOOD NATURE seasons with their five senses. This STATION Kawaramachi The Kyoto will be made possible by our Residence To Yodoyabashi, thorough pursuit of ingredients. Nakanoshima Market (1F) Launch of e-commerce • The floor concept is the “market The GOOD NATURE STATION ONLINE, restaurant” filled with the joy of an e-commerce website handling our original eating. • Features our original food brand brands, will be launched when the GOOD NATURE that meets a wide variety of food- STATION opens. related needs. 7 Redevelop Keihan areas Regaining the glory of Osaka’s east to west axis Growth pole development in Yodoyabashi Keihan Midosuji Building and Nittochi Yodoyabashi Building (owned by NIPPON TOCHI-TATEMONO Co., Ltd.) will be jointly reconstructed after integration of the premises. It will be a magnificent building that will serve as a Current status of Keihan gateway to Midosuji Street and a landmark of Midosuji Building and its Yodoyabashi. surrounding In addition to high-standard offices, commercial facilities will be invited to lower floors, including the underground part directly connected to Yodoyabashi Station. Multi-purpose square featuring a 4-story atrium Dojima River Oebashi Sta. St. Bank of Japan Osaka City Hall Nakanoshima Osaka Branch Midosuji Library Osaka Metro Metro Osaka New building (image) Line Midosuji Tosabori River Yodoyabashi Sta. Yodoyabashi Nittochi Yodoyabashi Keihan Overview of the plan Bldg. Yodoyabashi Bldg. Sta. Keihan Project Area Nearest station: Directly connected to Yodoyabashi Station Midosuji Bldg. of Keihan Railway and Osaka Metro Midosuji Line Schedule Total floor area: Approx. 73,600 m2 2020 Demolition of existing building starts Size: 28 floors above ground, 4 floors below ground 2022 Construction of new building starts Height: Approx. 150 m 2025 Completion 8 Redevelop Growth pole development in the areas Keihan areas along the Keihan Railway lines USJ Nakanoshima Community building starting from railway stations Kyobashi Yumeshima (Potential Yodoyabashi Temmabashi Hirakatashi Chushojima Sanjo Demachiyanagi site for IR) Osaka’s east to west axis Major growth pole stations Nakanoshima Hirakatashi The area will be developed as a global hub for December 2018 business, cultural, and academic exchanges. • The Hirakatashi Station Area Urban Redevelopment We were selected as a preferred bidder regarding the Preparation Association was established. development of the International Hub for Medical October 2019 Innovation organized by Osaka City. • The urban redevelopment plan for the redevelopment area including the “delta land” owned by Keihan Holdings Draft plan of facility was formulated. • Name of facility: FY2026 Nakanoshima Multi-linkS • Project to be completed • Scheduled completion: October 2023 Traffic • Total floor area: square in Block A front of the (Approx. 6,500 m2) Approx. 58,000 m2 station Hirakatashi Sta. Block B • Size: (Approx. 15,200 m2) 17 floors above ground The International Hub for Redevelopment area (image) Medical Innovation (image) A partial rework of the briefing on the Redevelopment Project of Type 1 Urban Area around Hirakatashi Station (Hirakata City) 9 Co-create Strengthen tourism and tourism opportunity inbound business mainly in Kyoto Encouraging visitors to tour around the Mt. Hiei and Lake Biwa area Tourism MaaS demonstration experiment By examining how MaaS can contribute to improving convenience Eizan Cable Car of intraregional transportation, attracting tourists and encouraging & Ropeway Sakamoto them to tour around the area, we aim to promote measures to Cable Railway revitalize this area. Mt. Hiei • A council involving Otsu City, Keihan Holdings, Keihan Bus and Nihon Unisys was established • Experiment period: Nov. 1 to Dec.1 Keihan Railway • HIEIZAN Free Wi-Fi: 20 hotspots available (Keishin Line (From October onwards) Demachi- Ishiyama- sakamoto Line) Lake Demonstration experiment of self-driving shuttle yanagi Biwa bus services in Otsu City Sanjo • We are engaged in a feasibility study (until FY2021) for the practical operation of self-driving buses to secure means of transportation for elderly people, offer secondary transportation Shichijo for tourists, and provide a solution to the severe problem of ● driver shortage. JR Kyoto • The bus ran at Autonomous Driving Level 4 (High Driving Automation) in some areas. Eizan Railway’s “Hiei” wins the Laurel Prize Experiment period: Nov. 2 to 8 （Second time following March) • “Hiei” is a tourist train