Keihan Holdings


Long-term management strategy
Medium-term management plan

Overall structure of the Keihan Group’s long-term strategic concept

Overall structure of the Keihan Group’s long-term strategic concept

The main strategies carried out by the Keihan Group toward FY 2027

Main strategy (1) Redevelop Keihan areas

Basic policy
Promote community building centered around railway stations, taking advantage of the area’s history, culture, and industries, to revitalize appealing and beautiful areas along the Keihan Railway lines and increase residents and visitors to the areas along the lines by connecting the areas with a traffic network

Regain the glory of Osaka’s east to west axis

  • Osaka’s east to west axis, which runs from Kyobashi, the gateway to Kyoto and close to Osaka Castle, via Nakanoshima, which aims to become the center of regenerative medicine, to the bay area where an IR is planned, is a historical and important urban axis for Osaka’s next generation.
  • We will aim to complete the development of Yodoyabashi and Kyobashi during the period of the long-term management strategy and develop Nakanoshima concurrently.
  • Subsequently, we will contribute to the creation of new urban appeal of Osaka by aiming to redevelop Temmabashi, the founding place of the Keihan Group, and extend the Nakanoshima Line.

Carry out community building starting from railway stations

  • Concentrate urban functions near stations and carry out continuous community building in cooperation with local companies and communities, taking advantage of the characteristics of the areas such as the history and culture, in an attempt to diversify the appeal of the areas along the Keihan Railway lines.
  • Promote community building that can only be done by a railway group by using railway stations not simply as a place for getting on and off trains but a place integrated with the community where people gather and communicate.
  • Expand the initiatives, starting from Hirakatashi Station.

Main initiatives of the medium-term management plan

Regain the glory of Osaka’s east to west axis

  • One of the largest office districts in Osaka, and a hub between
the north to south axis, Midosuji, and the east to west axis.
  • Planning development that leverages the Company’s assets
such as the Keihan Midosuji Building.
  • The largest terminal of the Keihan lines. With the revitalization
plan of the station building as a trigger, we will aim to create a community capable for serving as the Higashi gateway to
Osaka’s east to west axis by improving the circulation people in the community, including surrounding areas such Osaka Business Park and Osaka Castle.
  • Development plan of the 4-chome district, including the concept of the center of regenerative medicine and the Agora concept.
  • Directly linked to Kansai International Airport in the future due to the Naniwasuji Line plan
  • Based on the above concepts, promote the revitalization of the area, including the utilization of the company’s land.

Keihan Midoushuji Building

Keihan Kyobashi Station Building

Community building starting from railway stations

  • By 2018, we will revitalize Hirakatashi Station, which is the third largest station of the Keihan lines in terms of the number of users, and make it an appropriate “face” of a core city that features history and regional characteristics.
We will start full-scale redevelopment of the Company’s land directly linked to the station, coinciding with the decision of the urban plan scheduled in FY2019.
  • We will mainly revitalize the areas along Osaka’s east to west axis, starting with railway stations and expanding to surrounding areas, according to the regional characteristics, and aim to achieve synergy effects with community building of urban centers.

Image of the upgrade of Hirakatashi Station

Image of Hirakatashi Station and its surroundings (proposal by the Company)

Main strategy (2) Co-create tourism opportunity

Basic policy
In the growing tourism market, use the Keihan Group’s comprehensive strengths and create tourism opportunities together with the communities.
Provide and disseminate attractive tourism experiences mainly in Kyoto in an effort to increase visitors from other areas of Japan and from abroad.

Develop the three major tourism areas of Kyoto—Area in front of Kyoto Station, Shijo-Kawaramachi, and Sanjo

  • Open THE THOUSAND KYOTO, a hotel developed as part of efforts to make the area in front of Kyoto Station a global base, during the period of the medium-term management plan, and open a flagship commercial complex of BIOSTYLE in Shijo-Kawaramachi, the largest commercial area in Kyoto.
  • Concentrate tourism, commerce, and transportation functions in front of Sanjo station during the period of the long-term management strategy, and develop the area as the base for tourism of Higashiyama.

Develop a tourism route that connects tourism resources concentrated in areas along the Keihan Railway lines, and create tourism contents

Establish the golden route for tourism of Kyoto

  • Connect Kyoto’s major tourism points of Rakuhoku, Higashiyama, and Fushimi/Uji, and create a golden route for tourism
  • In addition to developing Sanjo as a base of the Higashiyama area, the center of the route, redevelop Demachiyanagi, the gateway to Rakuhoku, and Chushojima, which is adjacent to the former Fushimi port.

Jointly create tourism opportunities along the Flow of Water

  • The Keihan Railway line retains the history and culture of the Yodo River boat transportation, which connected Kyoto (“Kei”) and Osaka (“Han”) and extended nationwide.
In recent history, the “Flow of Water” prospered with the opening of the Lake Biwa Canal that linked Kyoto and
Lake Biwa.
  • We will create tourism opportunities within the region using the rich living and culture of the areas along the
Keihan Railway lines fostered by the history of the Flow of Water, which originates from Mt. Hiei and Lake Biwa and runs through Kyoto and Yodogawa, before arriving in the Osaka Bay area.

Main initiatives of the medium-term management plan

Strengthen tourism and inbound business mainly in Kyoto

Around Kyoto Station
  • The gateway to Kyoto,
which attracts more than 55 million tourists a year
from Japan and abroad.
The Keihan Group’s flagship hotel, THE THOUSAND KOTO, is scheduled to open in January 2019.
  • We will open two other new hotels near the station to address global accommodation needs by providing approx. 1,500 rooms in the area.
  • We will open a BIOSTYLE commercial complex in 2019 and promote a new lifestyle from Kyoto.
Area in front of Sanjo Station
  • At the former site of KYOUEN in front of the station, we will develop a complex that will become the base for tourism of Higashiyama and from where we will disseminate the culture of Japan and Kyoto. We will also consider introducing entertainment functions, in addition to concentrating tourism and commerce functions.
  • We will aim to contribute to stress-free tourism of Kyoto by seeking to disperse tourists that concentrate in Kyoto Station.


Expand tourism routes that heighten the appeal of tourism in Kyoto
  • In areas along Rakuhoku, Higashiyama, and Fushimi/Uji, we will create tourism routes using rich tourism resources, in cooperation with the communities.
  • In the Arashiyama area, we will create even more attractions centered around Keifuku Arashiyama Station.
Mt. Hiei, Lake Biwa “a corridor of mountain, water and shine”
  • We will strengthen efforts to improve the ability of circulation to tourism route “a corridor of mountain, water and shine”, which starts from Kyoto/Yase and leads
 to Lake Biwa via
Mt. Hiei, Otsu and Sakamoto.
Restoration of the “Flow of Water” boat
  • In the “Flow of Water”, which offers rich history, culture, and landscape, we will create tourism opportunities by revitalizing boat transportation of the Yodo River and operating
full-scale passage of boats
 on Lake Biwa Canal.

Main strategy (3) Create relatable contents

Basic policy
Aim to become a Keihan Group that creates products, services, and businesses that improve the value of living of customers and contribute to solving social issues such as the environment, thereby allowing the Group to be empathized with and chosen by customers.

Develop products and services that enable us to share values with customers

  • The maturing and saturating domestic market requires products and services that enable customers and companies to share values (empathize).
  • The Keihan Group aims to improve the “life quality” of customers as well as sharing values with customers with products, services, and businesses that contributes to solving social issues of achieving a sustainable society.
  • BIOSTYLE is a lifestyle aimed at achieving a healthy, beautiful, and high-quality life and contributing to a recycling-oriented society. As the main initiative, we will establish BIOSTYLE as the Keihan Group’s new brand.

Main initiatives in the medium-term management plan

BIOSTYLE - Aiming for Keihan as First Choice -

  • A new commercial complex is scheduled to open in Shijo-Kawaramachi, Kyoto as a flagship facility that proposes BIOSTYLE in food, beauty, and accommodation. (2019)
  • We will expand into
manufacturing retail that develops original products such as
    cosmetics in order to propose new vlue mainly in organic products.
  • Expand business originating from
(Small-scale stores and e-commerce)

Initiatives by the entire Group

  • Incorporate BIOSTYLE in the products and services of each business of the Keihan Group and aim to offer products and services that customers can relate to.

Energy-saving railroad car, 13000 series
[Keihan Electric Railway]

ZEH(Net Zero Energy House)[Zero Corporation]

Sale of organic vegetable and processed goods[Biomarket]

Preparations for the management vision

Create area portfolios

Strengthen business development in Kyoto
  • Without focusing only on the tourism business, the four core businesses will place emphasis on business development and contribute to the revitalization of Kyoto as a local company. Seek to expand business opportunities of the Keihan Group.
  • In addition to inbound tourism, promote businesses targeting inbound residents such as researchers and students, and utilize overseas personnel in order to carry out the overseas strategy effectively.
Expand business to outside the areas along the Keihan Railway lines and to overseas growth markets
  • While carrying out the main strategies as the top priority, utilize know-how gained in areas along the Keihan Railway lines and expand business to other parts of Japan such as the Tokyo metropolitan area as well as to abroad, expanding the business areas of the Keihan Group.
  • Overseas, which is a growth market, develop mainly the real estate and retail distribution businesses. Inject the Group’s managerial resources while determining the direction.

    Overseas asset size : FY2018 Approx.JPY3.0 bn -> FY2027 target Approx.JPY50.0 bn

Promote innovations with an eye to the next generation

Create services and improve productivity by utilizing ICT technologies
  • Examine and forecast the future impact of ICT technology innovations (robotics, self-driving, sharing services, etc.) on the Keihan Group and promote innovation of existing businesses. Improve safety and efficiency and develop new
services by actively utilizing the
innovations at each business.
  • Respond to changes in workstyle and lifestyle brought about by environmental changes such as ICT technology innovations, and aim to develop into a Keihan Group that is chosen by both customers and workers as a company with high productivity and creativity.
Promote new businesses
  • Strengthen businesses and carry out alliances toward expansion, and cooperate with other companies in ICT technologies and fields such as sharing services to create new businesses.
  • Cultivate a public service market through active participation in the
partnership (PPP) business.

Quantitative targets

Improve profitability and aim to achieve EBITDA in FY2027, a year in the process of growth, of JPY72.0 bn or more, a 40% increase from FY2018

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Management indicators FY2018 Results FY2021 Plan FY2027 Target level
(Operating income + depreciation)
JPY50.5 bn JPY57.0 bn -> JPY72.0 bn or more
Net interest-bearing
debt / EBITDA multiple
5.9x 6x level -> 6x level
ROE 10.8% 8% or more -> 8% or more
Operating income JPY31.4 bn JPY33.5 bn -> JPY43.0 bn or more