Wednesday, Mar 29, 2017
KEIHAN GROUP


  • Vision/Mission

Management Principles

The Keihan Group will create a comfortable living environment and contribute to society by establishing a network of dreams, hope, and trust.

 

  • Business Description

  Our group, focused mainly on the areas of Osaka, Kyoto, and Shiga, is comprised of four main segments. First, our transportation business, including by rail and bus. Second, the real estate business, involved in the sale of apartments and other rental properties. Third, the distribution business, targeting department stores, shopping malls, and other commercial properties. Finally, the leisure and servicing business, for hotel clients, offering sightseeing tours and cruises, among others.

 

  • Background

Our company, was founded in 1906 by its first chairman also known as the “father of Japanese capitalism,” Eiichi Shibusawa. We first began our rail service in 1910. Through the many events spanning more than 100 years of existence, our company has focused on a variety of commercial activities important in the daily lives of our customers. Over time, we have expanded into an organization currently comprised of nearly 50 subsidiaries.

With a central focus on safety and peace of mind, our railway business operates in Osaka, Kyoto, and Shiga. In addition, we have continued to operate essential businesses in today’s society, such as urban development , distribution networks and leisure.

 

  • Products/Services

Our operating revenue and profit for each segment is given below (as of March 2016).

  Transportation - (Operating Revenue: \93.5 billion; Operating Profit: \10.1 billion)

  Real Estate - (Operating Revenue: \89.0 billion; Operating Profit: \13.8 billion)

  Distribution - (Operating Revenue: \98.8 billion; Operating Profit: \2.8 billion)

Leisure & Services - (Operating Revenue: \31.8 billion; Operating Profit: \4.5 billion)

 

  • Markets

Please refer to the Location and Competitive Advantages sections.

 

  • Industry

  Please refer to the Location and Competitive Advantages sections.

 

  • Location

Our organization’s headquarters is located in the Chuo district of Osaka City. Our central operating areas include Osaka, Kyoto, and Shiga, but we have an overwhelming wealth of recognized history, even compared with the Tokyo metropolitan area, in the greater Kansai area. In particular, there are a number of famous historic temples and buildings that surround our Kyoto-area railways, which is a huge advantage for our organization, as people know many of our stations for their walking distance proximity to major tourist attractions.

 

  • Competitive Advantages

We believe our locational advantages to be extremely valuable. For instance, we have a very strong presence in Kyoto, which was named by the major American magazine “Travel & Leisure”, most popular city in the world in both 2014 and 2015. Therefore, we are confident that our network, which spans areas rich with popular tourist spots while also providing easy access to school and work, has a solid foundation on both ends of the spectrum.

 

  • Financial Projection

・The Keihan Group will be in the third year of its mid-term management plan as of Mar. 2018. Results to this point have been relatively healthy, with investments aimed at the next-stage proceeding smoothly.

・Our expected results as of March 2017 continue to remain at a high level, close to that of last year, which saw both operating and net profit at their highest levels ever. It goes without saying that results have far exceeded mid-term quantitative objectives. We will continue to strive for increased profits, as we see our March 2018 planned goals as must-makes.

 

Mar. 2017 Expected Results:    
Operating Revenue: \300 billion; Operating Profit: \29.3 billion;
Ordinary Profit:  \27.4 billion; Net Profit: \20.0 billion

 

Quantitative Mid-Term Objective (by Mar. 2018):

 Operating Profit of Over \22.0 billion; Net Profit of Over 12.0 billion

 

  • Company Goals and Objectives

We continue to tackle the challenges presented by our current initiatives, which include a restructuring of management in the mid-term, a process we have dubbed “Creative Resolution” (2015 – 2017 fiscal period). The key components of this restructuring include our key strategic pillars of tourism creation and rail-side re-cultivation, implying the creation of content that improves daily life, as well as a strengthening of our managerial foundations.

In addition, we will continue to actively pour resources into our transportation and hotel businesses as we foresee a real growth potential thanks to increased demand, due to the expanding number of foreign tourists visiting Japan, with 24 million (22% YoY) in 2016 and an expected 40 million in 2020.

 

  • Employees

6,904 (Consolidated)

 

  • Highlights

We are continuing efforts to finalize our “Premium Car” service, allowing customers to designate their preferred seat on rapid-service trains, by the planned release in August this year. We are confident the service will be of such high quality that even travelers from abroad will be satisfied.


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