Nagoya Railroad Co., Ltd. · TSE:9048
Nagoya Railroad — H1 FY2024 Earnings Presentation
42 slides from Nagoya Railroad's earnings presentation, Nov 20, 2024
Slide 1: Six-Month Period Ended September 30, 2024 Financial Results Presentation for Investors
Six-Month Period Ended September 30, 2024 Financial Results Presentation for Investors Nagoya Railroad Co., Ltd. Securities Code: 9048 November 20, 2024
Slide 2: Contents
Contents Review of the Six-Month Period and Revisions to Results 01 Forecasts for FY2024 Medium- to Long-term Management Strategies and 02 Growth Potential The Company’s Transportation Results and 03 Progress of the Meitetsu Group’s Medium-term Management Plan 04 Financial Results for the Six-Month
Slide 3: Review of the Six-Month Period and Revisions to Results Forecasts for FY2024
Review of the Six-Month Period and 01 Revisions to Results Forecasts for FY2024 Copyright © Nagoya Railroad Co.,Ltd. 3
Slide 4: Review of the Six-Month Period
Review of the Six-Month Period ■ FY2024 1st Half consolidated results ■Operating income by Segment Figures in brackets are the year-on year percentage changes. (Billions of yen, %) (Billions of yen) FY2024 FY2023 Previous Forecast FY2024 YoY Change (As of May) Change 1st Half 1st Half 1st Half chang
Slide 5: Revisions to Results Forecasts for FY2024
Revisions to Results Forecasts for FY2024 ■ FY2024 Consolidated results forecast ■FY2024 Operating income forecast by segment (Billions of yen) Revised Previous Revised Previous Change Change forecasts forecasts forecasts forecast bn bn bn Operating revenues 686.0 yen 675.0 yen 11.0 yen Traffic 17.4
Slide 6: Medium- to Long-term Management Strategies and Growth Potential
02 Medium- to Long-term Management Strategies and Growth Potential Copyright © Nagoya Railroad Co.,Ltd. 6
Slide 7: Five Key Points for Growth Potential
Five Key Points for Growth Potential Management Vision Vision for 2040 Medium- to Long-term Management Strategies ♦ Creating attractive areas and cities Develop Regions,、 ♦ Realizing a mobility network centered The Meitetsu Group continues to provide on public transportation Support Society, unique
Slide 8: Growth Strategy for the Real Estate Business
Growth Strategy for the Real Estate Business Attracting external capital to the Chubu region to accelerate real estate development in the area ■Diversifying the Real Estate business Operation management Redevelopment Reacquisition Contracting Delivery Development Sale operation Enhancement and accel
Slide 9: Alliances to Enhance the Real Estate Business
Alliances to Enhance the Real Estate Business Enhancing and accelerating the Real Estate business through alliances with partner companies with solid know-how [Tosei Corporation] From FY2024 onwards [XYMAX Group Corporation] From FY2021 onwards Operation Redevelopment Operation Redevelopment Deliver
Slide 10: Promoting the Creation of Attractive Areas and Cities
Promoting the Creation of Attractive Areas and Cities <Major development schedule> From FY2030 FY2024 From FY2025 to FY2029 to FY2039 Meitetsu Nagoya Station District • MCD-LOGI Komaki, a logistics facility (scheduled to be Redevelopment Project completed in spring 2025) • Plan of renovating Meitets
Slide 11: Seizing Demand for Tourism Exchange
Seizing Demand for Tourism Exchange Collaborating with local communities to aim for high-quality inbound tourism demand seeking to visit the real Japan (1) Prioritizing focus on Hida Takayama and Inuyama as tourist destinations (2) Revitalizing tourism in mountain regions, mountain villages, cities
Slide 12: Adding Greater Value
Adding Greater Value Making accurate assessments of the market and strengthening earning power with price commensurate with the value-added (1) Actions to pass on price increases (2) Price commensurate with the value-added (3) Improving quality and adding greater value to products and services (4) P
Slide 13: Expanding B-to-G Business
Expanding B-to-G Business Proactively seizing business opportunities in social infrastructure development, healthcare, and disaster prevention Participation in PPP and PFI projects Park-PFI project in Gifu Park Commissioned operations of air ambulances 13
Slide 14: Increasing the Ratio of Passengers Taking Public Transport
Increasing the Ratio of Passengers Taking Public Transport Working together as a whole region beyond the boundaries of modes and businesses to enhance the ratio of passengers taking public transport (1) Sophisticating CentX (2) Improving efficiency and networking by enhancing main lines and promotin
Slide 15: (Reference) Compact Plus Network
(Reference) Compact Plus Network Image of the Compact Plus Network proposed by the government • Railways and buses will continue to play a more important role in transportation between hubs and Resident area within hub areas. Transportation within the hub • New mobility modes such as taxies Transpor
Slide 16: Model Cities of a Compact Plus Network in Areas along Public Transport Lines
Model Cities of a Compact Plus Network in Areas along Public Transport Lines Okazaki City, Aichi Prefecture (a model city Gifu City, Gifu Prefecture (a model city in the in the third project) first project) Source: Website of the Ministry of Land, Infrastructure, Transport and Tourism Source: We
Slide 17: The Company's Transportation Results and Progress of the Medium-term Management Plan
The Company’s Transportation Results and 03 Progress of the Meitetsu Group’s Medium-term Management Plan Copyright © Nagoya Railroad Co., Ltd. 17
Slide 18: The Company's Transportation Results
The Company’s Transportation Results ■ Nagoya Railroad, Transportation Results (Unit: Billions of yen, %) (Unit: Millions of people, %) YoY percent YoY percent Transfer Reveunes FY2024 2Q Passengers FY2024 2Q change change Non-commuters 26.1 + 14.4 % Non-commuters 59.67 + 2.3 % Work commuters 16.1 +
Slide 19: Progress of the Medium-term Management Plan: Creating Attractive Communities and Cities
Progress of the Medium-term Management Plan: Creating Attractive Communities and Cities Seizing on the rare opportunities presented by the opening of the Linear Chuo Shinkansen maglev line and the expansion of the Centrair runways, to attract people from Japan and overseas to our business area, we a
Slide 20: Progress: Realizing a mobility network centered on public transportation
Progress of the medium-term management plan: Realizing a mobility network centered on public transportation To contribute to the construction of a sustainable society and a Compact Plus Network aligned to this era of population decline, low birthrates, and aging demographics, we will realize a mobil
Slide 21: Progress: Strengthening earnings power and promoting structural reforms
Progress of the medium-term management plan: Strengthening earnings power and promoting structural reforms As well as we will continually promote structural reforms to strive to enhance the profitability of the entire Group, we will also focus on developing business aimed at growth markets, building
Slide 22: Progress: Strengthening earnings power and promoting structural reforms
Progress of the medium-term management plan: Strengthening earnings power and promoting structural reforms Providing high value-added and Achieving transformation with digital differentiated products and services and cutting-edge technologies Strengthening development of businesses Initiatives a
Slide 23: Enhancing human capital
Enhancing human capital Human resources are the wellspring needed to realize the aforementioned medium- to long-term management strategy. By enhancing the wellbeing of people who work for the Group through human capital investment, we strive to enhance human capital, including talent acquisition and
Slide 24: Financial Results for the Six-Month Period of FY2024
Financial Results for the Six-Month Period 04 of FY2024 Copyright © Nagoya Railroad Co., Ltd. 24
Slide 25: Financial Results for the Six-Month Period of FY2024
Financial Results for the Six-Month Period of FY2024 Figures in brackets are the year-on year decrease and the decrease from the previous forecast. (Units : Millions of yen, %) Previous FY2024 FY2023 Change Notes Forecast Change 1st Half 1st Half (As of May) 50,790 Transport +22,233 Real Estate +15,
Slide 26: Financial Results Highlights
Financial Results Highlights Year-on-year: Higher revenues and Higher profits (Revenues in every business increased, especially in the Transport business in which a consolidated subsidiary was included. Although expenses such as service consignment fees increased, all line-item profits increased yea
Slide 27: Operating Results by Segment
Operating Results by Segment （単位：百万円、％） (Units: Millions of yen, %) FY2024 FY2023 Percent Previous Percent Operating revenues Change Change 1st Half 1st Half Change Forecast Change Traffic 79,527 72,636 6,891 9.5 78,700 827 1.1 Transport 91,581 69,347 22,233 32.1 91,600 (18) (0.0) Real Estate 61,268
Slide 28: Traffic Business
Traffic Business (Units : Millions of yen, %) FY2024 FY2023 Percent Change Notes 1st Half 1st Half Change Revenues increased due to the effects of fare revisions in the Operating revenues 79,527 72,636 6,891 9.5 railroad and bus businesses, as well as factors such as higher passenger numbers. Profit
Slide 29: Transport Business
Transport Business (Units : Millions of yen, %) FY2024 FY2023 Percent Change Notes 1st Half 1st Half Change Revenues increased due to contributions from a subsidiary in Operating revenues 91,581 69,347 22,233 32.1 the Truck business that was included in the scope of consolidation in the current fisc
Slide 30: Real Estate Business
Real Estate Business (Units: Millions of yen, %) FY2024 FY2023 Percent Change Notes 1st Half 1st Half Change Revenues increased due in part to higher revenues in the Rentals Operating revenues 61,268 45,517 15,751 34.6 business in addition to an increase in the number of condominiums for purchase de
Slide 31: Leisure and Services Business
Leisure and Services Business (Units: Millions of yen, %) FY2024 FY2023 Percent Change Notes 1st Half 1st Half Change Revenues increased, especially in the Hotel business, due to Operating revenues 49,870 48,365 1,504 3.1 a recovery in Tourism demand. Despite a return to profitability in the Hotel b
Slide 32: Distribution Business
Distribution Business (Units: Millions of yen, %) FY2024 FY2023 Percent Change Notes 1st Half 1st Half Change Despite a decrease in revenue from department stores due to Operating revenues 32,221 31,666 554 1.8 store closures, overall revenue increased due to an increase in revenue from the sale of
Slide 33: Aviation Services Business
Aviation Services Business (Units: Millions of yen, %) FY2024 FY2023 Percent Change Notes 1st Half 1st Half Change Revenue increased due in part to an increase in orders in the Operating revenues 13,482 11,941 1,540 12.9 in-flight catering business and an increase in the transportation of goods in t
Slide 34: Others
Others (Units: Millions of yen, %) FY2024 FY2023 Percent Change Notes 1st Half 1st Half Change Revenue increased due to the contribution of revenue from a construction subsidiary that was included in the scope of Operating revenues 26,603 21,725 4,877 22.5 consolidation in the previous fiscal year,
Slide 35: Non-Operating Income and Extraordinary Income
Non-Operating Income and Extraordinary Income (Units: Millions of yen) FY2024 FY2023 Change Notes 1st Half 1st Half Non-operating income 6,187 3,087 3,099 Interest income 55 21 33 Dividend income 1,215 757 458 Equity in net earnings of affiliates 4,092 1,262 2,829 (Current year) Tosei Corporation (n
Slide 36: Consolidated Balance Sheets
Consolidated Balance Sheets (Units: Millions of yen) FY2024 2024/3 Change Notes 1st Half results Current assets 262,728 238,484 24,243 Increase in cash and deposits Non-current assets 1,107,082 1,064,720 42,362 Capital investment 27,513 Inclusion of subsidiaries in consolidation 6,915 Property and e
Slide 37: Operating Results Forecast for FY2024
05 Operating Results Forecast for FY2024 Copyright © Nagoya Railroad Co., Ltd. 37
Slide 38: FY2024 Consolidated Operating Results Forecast
FY2024 Consolidated Operating Results Forecast (Units: Millions of yen, %) FY2024 Previous Percent FY2023 Percent current Forecast Change Change (As of May) Change results Change forecast Operating revenues 686,000 675,000 11,000 1.6 601,121 84,879 14.1 Operating income 41,000 40,000 1,000 2.5 34,75
Slide 39: Operating Results Forecast Highlights
Operating Results Forecast Highlights Year-on-year: Higher revenues・Higher profits (Revenues will increase especially in the Real Estate and Traffic businesses, in addition to the Transport business where business integration will be implemented. We expect all line-item profits to increase in line w
Slide 40: FY2024 Operating Results Forecast by Segment
FY2024 Operating Results Forecast by Segment (Units: Millions of yen, %) Previous FY2024 Percent FY2023 Percent Operating revenues Forecast Change Change forecast (As of May) Change results Change Traffic 157,200 156,700 500 0.3 146,582 10,618 7.2 Transport 186,200 186,000 200 0.1 138,308 47,892 34.
Slide 41: FY2024 EBITDA and Capital Investment Forecast
FY2024 EBITDA and Capital Investment Forecast (Units: Millions of yen) FY2024 FY2024 FY2023 FY2023 Current Change Current Change results results forecast forecast Operating income 17,400 12,980 4,420 Operating income (1,600) (2,697) 1,097 Depreciation and amortization 18,700 17,847 853 Depreciation
Slide 42: Future projections contain risks and uncertainty
In addition to factual past events, this document includes future projections, which contain risks and uncertainty. Please be advised that actual outcomes may vary based on a variety of factors. Copyright © Nagoya Railroad Co., Ltd. 42