Worth reading
87Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
150
¥100 million (increase in the operating profit target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedOperating profit+34.9%
基準 430Target580Hundreds of millions of yen
Net income for the current fiscal year+26.7%
基準 300Target380Hundreds of millions of yen
ROE+2.0pt
基準 8Target10%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planOperating profit ¥34 billion (fiscal year ending March 2026 medium-term plan) / Profit attributable to owners of the parent ¥23 billion (fiscal year ending March 2026 medium-term plan) / ROE Approximately 7% (fiscal year ending March 2026 medium-term plan) / EBITDA ¥58 billion (fiscal year ending March 2026 medium-term plan) → Operating profit ¥49.1 billion (fiscal year ending March 2026 actual) / Profit attributable to owners of the parent ¥33.5 billion (fiscal year ending March 2026 actual) / ROE 10.4% (fiscal year ending March 2026 actual) / EBITDA ¥73.2 billion (fiscal year ending March 2026 actual)
Total investment plan¥360 billion (fiscal 2026 to fiscal 2030)
Investment amount by sectorField Maintenance and replacement investments / Amount ¥110.0 billion, Field Growth Investment / Amount ¥250 billion, Field M&A, etc. / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyDividends based on a payout ratio of 30%. Applicable period: fiscal 2026 to fiscal 2030. DOE: Not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe Company will conduct share buybacks flexibly. The amount, timing and terms of the purchases are Not disclosed.
Cost of capitalThe current cost of shareholders’ equity is approximately 6% to 7%.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceThe Company recognizes that the current share price does not fully reflect the future potential of the Keihan Group. PBR: Not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Kyoto Tower renovation
02Mount Hiei area project
03Sanjo Station area project
04Revitalization and redevelopment of Otsu Port
05Nakanoshima Line Extension Plan
06Kyobashi Station area redevelopment
07Strengthening waterborne transportation
08Considering participation in businesses at IR facilities
09Community development starting from stations
10Expanding food retail businesses indispensable to the railway corridor and local communities
11Creating new businesses, including further business expansion leveraging existing expertise
12Enhancing commercial facilities as hubs connecting everyday life and tourism
13Introducing sightseeing trains and new rolling stock
14Strengthening efforts to capture domestic and international tourism demand
15Developing infrastructure toward the realization of automated operation
16Considering the introduction of public ride-sharing services
17Promoting station beautification through station renovations
18Installing movable platform gates
19Promoting digitalization
20Promoting the Keihan Main Line continuous grade-separation project
21Promoting “BIOSTYLE management”
22Promoting “offensive DX” and “defensive DX”
23Human capital strategy for realizing the management strategy
Plan assumptionsThe Osaka IR is scheduled to open in 2030, The Naniwasuji Line is scheduled to open in 2031
Segment targetSegment Transportation / Indicator Consolidated operating income for fiscal year 2030 / Target ¥16 billion, Segment Real Estate Business / Indicator Consolidated operating income for fiscal year 2030 / Target ¥30.5 billion, Segment Distribution Business / Indicator Consolidated operating income for fiscal year 2030 / Target ¥4.5 billion, Segment Leisure and Services Business / Indicator Consolidated operating income for fiscal year 2030 / Target ¥8.6 billion, Segment Other / Indicator Consolidated operating income for fiscal year 2030 / Target ¥500 million
Non-financial targetsIndicator CO₂ emissions / Target 46% reduction from fiscal 2013 / Timing FY2030, Indicator CO₂ emissions / Target Net zero / Timing FY2050, Indicator Movable platform gates / Target Install gates on 11 additional lines / Timing By fiscal 2030, Indicator Number of supermarkets / Target 9 store closures during the period / Timing FY2030, Indicator Number of station-based Moyori-ichi retail stores / Target 36 stores / Timing FY2030, Indicator New hotel openings / Target 6 stores in total / Timing FY2030, Indicator DX personnel / Target Develop 100 advanced-level personnel and intermediate-level personnel accounting for 30% of Group employees / Timing Not disclosed
Size of the Target MarketApproximately 56 million annual visitors to Kyoto City (2024). Source: Not disclosed.
Risks identified by the company
Inflation
Higher interest rates
Worsening labor shortages
Rapidly changing global conditions
Increasing severity and frequency of natural disasters
Declining Birthrate, Aging Population and Population Decline
Contraction of the railway corridor’s regional economy and society
Growing awareness of sustainability
Growing demand for a safe and secure society
Business environment risks, including the net interest-bearing debt/EBITDA ratio
Reason for revision or withdrawal
To raise the quantitative targets of the long-term management strategy to a higher level in light of progress under the current plan and changes in the business environment, and to rebuild the growth strategy for achieving those targets.
| Item | Details |
|---|---|
| Plan name | Keihan Group Long-Term Management Strategy 2030 / Medium-Term Management Plan “Shinka wo Maku 2028” |
| Plan period | Fiscal 2026 to fiscal 2028 (medium-term management plan); fiscal 2030 (target year for the long-term management strategy) |
| Progress against the plan | Formulated |
| Operating profit target | 430 Hundreds of millions of yen → 580 Hundreds of millions of yen（34.9%） |
| Net income target | 300 Hundreds of millions of yen → 380 Hundreds of millions of yen（26.7%） |
| ROE target | Approximately 8% → Around 10%（25%） |
| Payout ratio / DOE policy | Dividends based on a payout ratio of 30%. Applicable period: fiscal 2026 to fiscal 2030. DOE: Not disclosed. |
| Treasury share acquisition policy | The Company will conduct share buybacks flexibly. The amount, timing and terms of the purchases are Not disclosed. |
| Cost of capital | The current cost of shareholders’ equity is approximately 6% to 7%. |
| Self-assessment of PBR and share price | The Company recognizes that the current share price does not fully reflect the future potential of the Keihan Group. PBR: Not disclosed. |
| Total investment plan | ¥360 billion (fiscal 2026 to fiscal 2030) |
| Investment amount by sector | Field Maintenance and replacement investments / Amount ¥110.0 billion, Field Growth Investment / Amount ¥250 billion, Field M&A, etc. / Amount Not disclosed |
| Segment target | Segment Transportation / Indicator Consolidated operating income for fiscal year 2030 / Target ¥16 billion, Segment Real Estate Business / Indicator Consolidated operating income for fiscal year 2030 / Target ¥30.5 billion, Segment Distribution Business / Indicator Consolidated operating income for fiscal year 2030 / Target ¥4.5 billion, Segment Leisure and Services Business / Indicator Consolidated operating income for fiscal year 2030 / Target ¥8.6 billion, Segment Other / Indicator Consolidated operating income for fiscal year 2030 / Target ¥500 million |
| Non-financial targets | Indicator CO₂ emissions / Target 46% reduction from fiscal 2013 / Timing FY2030, Indicator CO₂ emissions / Target Net zero / Timing FY2050, Indicator Movable platform gates / Target Install gates on 11 additional lines / Timing By fiscal 2030, Indicator Number of supermarkets / Target 9 store closures during the period / Timing FY2030, Indicator Number of station-based Moyori-ichi retail stores / Target 36 stores / Timing FY2030, Indicator New hotel openings / Target 6 stores in total / Timing FY2030, Indicator DX personnel / Target Develop 100 advanced-level personnel and intermediate-level personnel accounting for 30% of Group employees / Timing Not disclosed |
| Plan assumptions | The Osaka IR is scheduled to open in 2030, The Naniwasuji Line is scheduled to open in 2031 |
| Key initiatives | Kyoto Tower renovation, Mount Hiei area project, Sanjo Station area project, Revitalization and redevelopment of Otsu Port, Nakanoshima Line Extension Plan, Kyobashi Station area redevelopment, Strengthening waterborne transportation, Considering participation in businesses at IR facilities, Community development starting from stations, Expanding food retail businesses indispensable to the railway corridor and local communities, Creating new businesses, including further business expansion leveraging existing expertise, Enhancing commercial facilities as hubs connecting everyday life and tourism, Introducing sightseeing trains and new rolling stock, Strengthening efforts to capture domestic and international tourism demand, Developing infrastructure toward the realization of automated operation, Considering the introduction of public ride-sharing services, Promoting station beautification through station renovations, Installing movable platform gates, Promoting digitalization, Promoting the Keihan Main Line continuous grade-separation project, Promoting “BIOSTYLE management”, Promoting “offensive DX” and “defensive DX”, Human capital strategy for realizing the management strategy |
| Results under the previous plan | Operating profit ¥34 billion (fiscal year ending March 2026 medium-term plan) / Profit attributable to owners of the parent ¥23 billion (fiscal year ending March 2026 medium-term plan) / ROE Approximately 7% (fiscal year ending March 2026 medium-term plan) / EBITDA ¥58 billion (fiscal year ending March 2026 medium-term plan) → Operating profit ¥49.1 billion (fiscal year ending March 2026 actual) / Profit attributable to owners of the parent ¥33.5 billion (fiscal year ending March 2026 actual) / ROE 10.4% (fiscal year ending March 2026 actual) / EBITDA ¥73.2 billion (fiscal year ending March 2026 actual) |
| Reason for revision or withdrawal | To raise the quantitative targets of the long-term management strategy to a higher level in light of progress under the current plan and changes in the business environment, and to rebuild the growth strategy for achieving those targets. |
| Size of the Target Market | Approximately 56 million annual visitors to Kyoto City (2024). Source: Not disclosed. |
| Risks identified | Inflation, Higher interest rates, Worsening labor shortages, Rapidly changing global conditions, Increasing severity and frequency of natural disasters, Declining Birthrate, Aging Population and Population Decline, Contraction of the railway corridor’s regional economy and society, Growing awareness of sustainability, Growing demand for a safe and secure society, Business environment risks, including the net interest-bearing debt/EBITDA ratio |
| Date of board resolution | 12 May 2026 |
| Publication date | 12 May 2026 |
Items this document does not state (3)
Sales TargetOperating profit margin targetROIC target
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.This reflects the progress made under the current plan and changes in the business environment. While the quantitative targets of the previous medium-term management plan and the long-term management strategy were achieved ahead of schedule, the business environment has become more challenging due to rising prices, labor shortages and higher interest rates. The Group therefore aims to accelerate the execution of its initiatives and achieve further profit growth.
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