Kyushu Railway Company · TSE:9142
Kyushu Railway — H1 FY2017/3 Earnings Presentation
34 slides from Kyushu Railway's earnings presentation, Nov 11, 2016
Slide 1: FY2017/3 Semi-Annual Investors Meeting
FY2017/3 Semi-Annual Investors Meeting November 11, 2016 Kyushu Railway Company 1
Slide 2: Contents
Contents Ⅰ Financial highlights 3 Ⅱ Financial results for the first half of FY2017/3 5 Ⅲ Forecasts for FY2017/3 15 Ⅳ Medium-Term Business Plan and Status of Progress 20 Ⅴ Individual business initiatives 25 Ⅵ The 2016 Kumamoto earthquakes 32 2
Slide 3: Financial highlights
Ⅰ Financial highlights 3
Slide 4: Consolidated Financial Highlights for the First Half of FY2017/3
Consolidated Financial highlights for the First Half of FY2017/3 【Year on Year】 • Operating revenue fell due to a decrease in income from railway passenger traffic resulting from the impact of the 2016 Kumamoto earthquakes as well as the decline in sales of apartments. • Net income attributable to o
Slide 5: Financial results for the first half of FY2017/3
Ⅱ Financial results for the first half of FY2017/3 5
Slide 6: Consolidated Income Statements
Consolidated Income Statements （Billions of yen） 6 months 6 months YoY ended Sep 30, ended Sep 30, Increase/ Major factors % 2015 2016 (decrease) A B B-A B/A Decrease in revenue from apartment sales (14.3) Decrease in revenue from railway passenger Operating revenues 188.9 172.0 (16.8) 91.1% traffic
Slide 7: Segment Information (Summary)
Segment Information (Summary) （Billions of yen） YoY 6 months ended Sep 6 months ended Sep Increase / 30, 2015 30, 2016 % (decrease) A B B-A B/A Operating revenues 188.9 172.0 (16.8) 91.1% Transportation 88.7 83.9 (4.7) 94.6% Construction 28.8 24.7 (4.0) 86.1% Real Estate 37.6 24.6 (13.0) 65.3% Real
Slide 8: Segment Information ①
Segment Information ① ◆ Transportation Segment （Billions of yen） YoY 6 months ended Sep 6 months ended Sep Increase/ 30, 2015 30, 2016 % (decrease) A B B-A B/A Operating revenues 88.7 83.9 (4.7) 94.6% Operating income 1.3 15.2 13.9 - EBITDA 22.5 16.4 (6.1) 72.9% ◆ Construction Segment （Billions of y
Slide 9: Segment Information ②
Segment Information ② ◆ Real Estate Segment （Billions of yen） YoY 6 months ended Sep 6 months ended Sep Increase/ 30, 2015 30, 2016 % (decrease) A B B-A B/A Operating revenues 37.6 24.6 (13.0) 65.3% Real Estate Lease 21.5 22.8 1.2 106.0% Real Estate Sale 16.0 1.7 (14.3) 10.8% Operating income 11.9 1
Slide 10: Segment Information ③
Segment Information ③ ◆ Retail and Restaurant Segment （Billions of yen） YoY 6 months ended Sep 6 months ended Sep Increase/ 30, 2015 30, 2016 % (decrease) A B B-A B/A Operating revenues 47.5 50.0 2.4 105.2% Operating income 1.6 1.6 0.0 101.5% EBITDA 2.4 2.5 0.1 104.8% ◆ Other Segments （Billions of y
Slide 11: Financial Position and Status of Cash Flows (consolidated)
Financial Position and Status of Cash Flows (consolidated) （Billions of yen） As of March As of Sep Increase/ Financial Position 31,2016 30,2016 (decrease) A B B-A Assets 646.6 635.4 (11.2) Liabilities 340.9 312.0 (28.8) Net assets 305.7 323.3 17.6 Equity ratio 46.4% 50.1% 3.6% Net assets per share （
Slide 12: Nonconsolidated Income Statements
Nonconsolidated Income Statements （Billions of yen） 6 months 6 months YoY ended Sep 30, ended Sep 30, Increase/ % Major factors 2015 2016 (decrease) A B B-A B/A Decrease in revenue from apartment sales (14.3) Decrease in revenue from railway Operating revenues 110.4 93.2 (17.2) 84.4% passenger traff
Slide 13: Nonconsolidated Income Statements [Reprint]
Nonconsolidated Income Statements 【Reprint】 （Billions of yen） YoY 6 months ended 6 months ended Increase/ Sep 30, 2015 Sep 30, 2016 % (decrease) A B B-A B/A Operating revenues 82.9 78.6 (4.2) 94.8% business Railway Operating expenses 82.1 63.5 (18.5) 77.4% Operating income 0.7 15.0 14.2 － businesses
Slide 14: Income from Railway Passenger Traffic and Performance of Transportation Volume
Income from Railway Passenger Traffic and Performance of Transportation Volume （Billions of yen） YoY 6 months ended 6 months ended Transportation Revenues Increase/ Sep 30, 2015 Sep 30, 2016 % (decrease) A B B-A B/A Total 74.8 71.1 (3.6) 95.1% Shinkansen 25.8 23.7 (2.0) 92.0% Commuter pass 1.3 1.3 0
Slide 15: Forecasts for FY2017/3
Ⅲ Forecasts for FY2017/3 15
Slide 16: Consolidated Financial Forecasts
Consolidated Financial Forecasts （Billions of yen） YoY Results Forecasts Increase/ FY2016/3 FY2017/3 % (decrease) A B B-A B/A Operating revenues 377.9 378.8 0.8 100.2% Operating income 20.8 51.8 30.9 247.9% Ordinary income 32.0 53.5 21.4 167.0% Net income attributable to owners of the parent (433.0)
Slide 17: Consolidated Financial Forecasts [By segment]
Consolidated Financial Forecasts 【By segment】 （Billions of yen） YoY Results Forecasts Increase/ FY2016/3 FY2017/3 % (decrease) A B B-A B/A Operating revenues 377.9 378.8 0.8 100.2% Transportation 180.9 173.6 (7.3) 95.9% Construction 88.4 80.8 (7.6) 91.4% Real Estate 62.0 64.3 2.2 103.7% Retail and R
Slide 18: Nonconsolidated Financial Forecasts
Nonconsolidated Financial Forecasts （Billions of yen） YoY Results Forecasts Increase/ FY2016/3 FY2017/3 % (decrease) A B B-A B/A Operating revenues 211.1 208.6 (2.5) 98.8% (Revenue from railway passenger travel) 150.1 143.5 (6.6) 95.6% Operating expenses 205.6 168.2 (37.4) 81.8% Operating income 5.4
Slide 19: Nonconsolidated Financial Forecasts [Reprint]
Nonconsolidated Financial Forecasts 【Reprint】 （Billions of yen） YoY Results Forecasts Increase/ FY2016/3 FY2017/3 % (decrease) A B B-A B/A Operating revenues 169.1 162.3 (6.8) 95.9% business Railway Operating expenses 180.7 139.7 (41.0) 77.3% Operating income (11.5) 22.6 34.1 － businesses Operating
Slide 20: Medium-Term Business Plan and Status of Progress
Ⅳ Medium-Term Business Plan and Status of Progress 20
Slide 21: Position of the Medium-Term Business Plan 2016–2018
Position of the Medium-Term Business Plan 2016–2018 Aiming to be a kind and robust corporate group involved in comprehensive city-building Actively promoting city-building through strong railway construction and diverse businesses and further solidifying business foundations in Kyushu Steadily m
Slide 22: Target Management Indicators
Target Management Indicators Target Indicators (FY 2019/3) Operating revenues ¥400 billion EBITDA ¥78 billion Income from sources other than railway traffic revenues account for over 62% of total operating revenues. ＜ Operating revenues ＞ ＜EBITDA＞ Revenue from sources other than railway traffic
Slide 23: Capital Investment Amounts
Capital Investment Amounts ＜Capital Investment Amounts＞ ¥ Billions Investments to improve safety in the railway business 700 70 65.6 60 600 58.4 [Reference] Consolidated 55.0 Capital Investment Amounts 500 50 ¥190 billion (FY 2017/3–2019/3 totals) 400 40 (Main details) Investments to improve safet
Slide 24: Returns to Shareholders
Returns to Shareholders ◆ Dividend Policy Until FY 2019/3, we will aim for stable dividends per share with a consolidated payout ratio of approximately 30% as the standard guideline. Note: Taking into account the fact that the period between the Company’s public listing and the year- end dividend re
Slide 25: Individual business initiatives
Ⅴ Individual business initiatives 25
Slide 26: Creating Synergies Between Businesses through City-Building
Creating Synergies Between Businesses through City-Building Development of versatile businesses that leverages the “security and trust” and “customer attraction” the railway business has established Contribution of city-building to increased ridership and short-distance transportation ＜Examples
Slide 27: Initiatives in the Railway Business ①
Initiatives in the Railway Business ① Work together with local communities to make areas surrounding train tracks more attractive, with the Kyushu Shinkansen and “Design & Story” trains as key to these efforts Aim to take on the challenge of producing technological innovations and establish an e
Slide 28: Initiatives in the Railway Business ②
Initiatives in the Railway Business ② • Further increase train usage and bolster profitability by encouraging the use of the “JR Kyushu Internet Reservation Service” and actively promoting policies focused on inbound demand <Trends in Number of Reservations through the <Internet Strategy> 10,000 Int
Slide 29: Initiatives in the Station Building Business
Initiatives in the Station Building Business • Carry out attractive and lively city-building centered on train stations and rooted in local communities • Maximize synergistic effects with the railway business with the aim of improving the value of our station and station buildings ¥ Billions <Perfor
Slide 30: Initiatives in the Apartment Business
Initiatives in the Apartment Business Leased Apartments We aim to secure stable profits by promoting the development of new properties. Units <Number of Units at Leased Apartments <New properties> (cumulative total)> Month move-ins Property names Total number commenced of units February 2016 RJR P
Slide 31: Pipeline Going Forward
Pipeline Going Forward • Continue to strengthen profitability through large-scale developments • Without being limited to areas surrounding train stations, actively pursue development in urban areas as a “city-building” company • Promote expansion outside of the Kyushu area, including Tokyo and Okin
Slide 32: The 2016 Kumamoto earthquakes
Ⅵ The 2016 Kumamoto earthquakes 32
Slide 33: The 2016 Kumamoto earthquakes (April, 2016)
The 2016 Kumamoto earthquakes （April, 2016） ◆ Major Damage from the 2016 Kumamoto Earthquakes and Status of Recovery • Kyushu Shinkansen Derailment of out-of-service trains between Kumamoto Station and Kumamoto General Rolling Stock Center ⇒ Restart of operations for all lines on April 27, commencem
Slide 34: Forward-Looking Statements
Forward-Looking Statements These materials contain forward-looking statements concerning business forecasts, targets, etc. of the JR Kyushu Group. The Company decided on these forward-looking statements based on the available information, as well as Company estimates and assumptions, at the time the
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