Nagoya Railroad Co., Ltd. · TSE:9048

Nagoya Railroad — H1 FY2022 Earnings Presentation

54 slides from Nagoya Railroad's earnings presentation, Nov 17, 2022

Slide 1: Six-month Period Ending September 30, 2022 Financial Results Presentation for Investors
Six-month Period Ending September 30, 2022 Financial Results Presentation for Investors Nagoya Railroad Co., Ltd. Securities Code: 9048 November 17, 2022 Copyright © Nagoya Railroad Co., Ltd.
Slide 2: Growth Strategies to Build Communities
01 Growth Strategies to Build Communities Copyright © Nagoya Railroad Co., Ltd. 01
Slide 3: Growth Strategies to Build Communities
Growth Strategies to Build Communities 1 Restructuring the Railroad business and adapting to change 2 Enhancing the ratio of passengers taking public transport 3 Growing the Real Estate business 4 Promoting a shift to high value added 5 Strengthening relationships with communities Copyright © Nagoya
Slide 4: Group Growth Strategy
Group Growth Strategy Community revitalization projects Group Business Achieve long-term Group-wide growth through Real Estate businesses that revitalize local communities (vertical growth) and businesses that support Health care Information/ Technology Traffics (Nurcing) Child care society (horiz
Slide 5: Restructuring the Railroad business and adapting to change
Restructuring the Railroad business and adapting to change Promoting structural reform We have been making steady progress toward achieving an improvement of around ¥3.0 billion in profitability in the fiscal 2021 to fiscal 2023 period. Environmental changes and social mission Higher management Rene
Slide 6: Enhancing the ratio of passengers taking public transport (1)
Enhancing the ratio of passengers taking public transport (1) The ratio of passengers taking public transport in the three largest cities Source: Created by Meitetsu based on the results of each city’s most recent public transport survey Tokyo Chukyo Keihanshin Metropolitan Metropolitan Metropolitan
Slide 7: Enhancing the ratio of passengers taking public transport (2)
Enhancing the ratio of passengers taking public transport (2) Leading initiatives unified with local communities to enhance public transport convenience All our various local partners Each Meitetsu Group company (operators, stores, facilities, etc.) Promoting use of public Revitalizing communities t
Slide 8: Enhancing the ratio of passengers taking public transport (3)
Enhancing the ratio of passengers taking public transport (3) Nationwide MaaS Collaborating with nationwide MaaS operators Chubu region Regional MaaS Micro MaaS Collaborating with cities and tourist spots along rail lines Copyright © Nagoya Railroad Co., Ltd. 07
Slide 9: Growing the Real Estate business (1)
Growing the Real Estate business (1) Phase 1 Upstream April 2022 Beginning Meitetsu City Design (planning, development, Enhancing planning, development, and strategy functions) and strategy functions Midstream Phase 2 (operating and management functions) Strengthening operating and management functi
Slide 10: Growing the Real Estate business (2)
Growing the Real Estate business (2) Broadening the Real Estate business Balance of Development revenue structure Ensuring financial discipline Stock Owner- Sale ship Private Flow Rental REITs Preparing to launch an asset Fees management function to facilitate Operation the establishment of and priv
Slide 11: Promoting a shift to high value added
Promoting a shift to high value added Shift to high value-added areas, businesses, and services In the lead up to the restart of inbound tourism, shifting from quantity to quality (high-priced routes) Main Initiatives Inuyama district Hida district Opening Hotel Indigo Inuyama Urakuen Garden Shinhot
Slide 12: Strengthening relationships with communities
Strengthening relationships with communities In April 2022 established the Regional Revitalization Promotional HQ in Nagoya Railroad Visit municipalities along rail lines and strive to strengthen relationships Strong close relationships with communities = Greatest invisible asset Main Initiatives 1
Slide 13: The Group's Operating Results (full-year forecast)
The Group’s Operating Results (full-year forecast) Consolidated performance forecast summary FY2022 full-year forecast Current forecast Previous forecast Change (compared with the previous forecast) Billons Billons Billons Real Estate +6.0 billion yen Aviation Services +1.1 billion yen Transport +0.
Slide 15: Group Business Performance (second quarter results)
Group Business Performance (second quarter results) Summary of Consolidated Results FY2022 Second Quarter Previous Apr.-Jun. Results Jul.-Sept. Results Cumulative Results Year-on-year change Forecast Compared to the forecast （As of May） Billons Billons Billons Billons Billons Billons Operating reven
Slide 16: The Company's Passengers
The Company’s Passengers ■ Railroad Passenger Trends *Figures on graphs are [Total] Apr.–Sept. cumulative total: 172 million passengers; compared with FY2019: −17.1% percent changes compared to FY2019（%） (Unit: Millions of people) (Unit: People) -13.8 -14.0 -13.2 -15.2 -25.5 -9.9 -20.0 Total ridersh
Slide 17: Measures to combat inflation and soaring fuel costs
Measures to combat inflation and soaring fuel costs Railroad Business Maritime Transport Business • Streamline transport and reduce power usage • Hedge against crude oil price fluctuations with derivative trades • Introduce energy-efficient train cars • Select more efficient sea routes using ocean c
Slide 18: Progress of the Meitetsu Group's Medium-term Management Plan
Progress of the Meitetsu Group’s 03 Medium-term Management Plan, Turn-Over 2023 ~Setting Things on a New Track~ Copyright © Nagoya Railroad Co., Ltd. 17
Slide 19: Initiatives aimed at stable management in the Railroad business
Initiatives aimed at stable management over the medium to long term in the Railroad business To realize stable management over the long term even amid lower revenues since the pandemic began, we are striving to make costs more appropriate and streamline our workforce in line with demand while enhanc
Slide 20: Initiatives following business reorganization: Real Estate business
Initiatives following business reorganization: Real Estate business We invested in Xymax Corporation, thereby deepening our relationship with said company in line with measures to strengthen the Real Estate business Investment in Xymax Corporation Investment Relationship Diagram (as of October 1, 20
Slide 21: Initiatives following business reorganization: Hotel business
Initiatives following business reorganization: Hotel business Addressing issues with an eye toward demand recovery FY2022: Occupancy Rates and Lodging Prices at Main Group Hotels within Nagoya City Simple average of 5 business hotels (1) Occupancy rate (2) Lodging price (Yen) Simple average of 2 oth
Slide 22: Revitalizing communities and areas along train lines (1)
Revitalizing communities and areas along train lines as a unified group (1) We collaborate on business related to the establishment of new stations and the elevation of railroad tracks being carried out by national and local governments while continually striving to enhance public safety and conveni
Slide 23: Revitalizing communities and areas along train lines (2)
Revitalizing communities and areas along train lines as a unified group (2) Developing real estate for a variety of applications Developing multi-tenant logistics facilities Began construction of the Shin-Osaka Station south We plan to develop logistics facilities on the land where office building M
Slide 24: Revitalizing communities and areas along train lines (3)
Revitalizing communities and areas along train lines as a unified group (3) In Phase 1 of Ghibli Park, we will take various measures to steadily bring in visitors to Aichi Prefecture. Official partner of Ghibli Park. The Group’s initiatives related to the opening of Ghibli Park MaaS Collaboration wi
Slide 25: Meitetsu Nagoya Station District Redevelopment Project
Moving forward with efforts related to the Meitetsu Nagoya Station District Redevelopment Project Promoting initiatives aimed at realizing the comprehensive redevelopment and renovation of transport facilities The Company’s Policy on Redevelopment ➢ Urban development that maximizes value in the rede
Slide 26: Initiatives aimed at expanding business fields (1)
Initiatives aimed at expanding business fields (1) We aim to proactively expand our business content under a structure that consolidates the retail business Current initiatives through reorganization of the Opened a Hoshigaoka Loft general goods store (Planned for November 25, 2022) retail business
Slide 27: Initiatives aimed at expanding business fields (2)
Initiatives aimed at expanding business fields (2) In the Kanto area, opening beverage and food retail businesses and building their connections to expanding business fields Opened the Japanese-style Taiwanese cafeteria WUMEI Expanded stores in the bakery business (opened the (September 8, 2022) sec
Slide 28: Initiatives aimed at expanding business fields (3)
Initiatives aimed at expanding business fields (3) In the transport business, which is expected to grow going forward, we will promote collaborations with other companies and open new locations. Meitetsu Transportation: Enhancing collaboration with Nippon Express. Content of Collaboration ➢ Making o
Slide 29: Initiatives aimed at expanding business fields (4)
Initiatives aimed at expanding business fields (4) Participating in initiatives aimed at creating new businesses in addition to promoting initiatives that use advanced technology Drone business initiatives Participating in Initiatives Aimed at Open Innovation Formed a business alliance with Prodrone
Slide 30: Proposing and building public transport optimized for local regions
Proposing and building public transport optimized for local regions *In various regions, we offer comprehensive proposals that address issues related to Solving local issues by rolling out the Meitetsu public transport and construct general transportation services as a unified Meitetsu Area Package*
Slide 31: Expanding services for the local MaaS app CentX
Expanding services for the local MaaS app CentX Providing information and functions that facilitate local people’s outings and collaborating with various local partners Expanding recognition Enhancing attractiveness and promoting use Collaborating with various local partners and contents Enhancing C
Slide 32: Sustainability Initiatives (1)
Sustainability Initiatives (1) We identify material issues surrounding sustainability and promote initiatives aimed at realizing a sustainable society Material Issues Surrounding Sustainability: Approved at a Board of Directors Meeting in April 2022 Ｅ Contributing to Ｓ Training personnel Ｇ Strengthe
Slide 33: Sustainability Initiatives (2)
Sustainability Initiatives (2) Striving to enhance human capital with the aim of achieving the sustainable growth of the Group Basic Policy Looking to ensure the Group’s sustainable growth, we clearly define the roles and our expectations of each employee and support their efforts to improve their c
Slide 34: Six-month Period Ending Financial Results
04 Six-month Period Ending Financial Results Copyright © Nagoya Railroad Co., Ltd. 33
Slide 35: Six-month Period Ending Financial Results
Six-month Period Ending Financial Results Figures in parentheses are the year-on year percent change （Units : Millions of yen,%） Latest FY2022 FY2021 Change Notes Forecast Change 1st Half 1st Half (As of May) 38,841 -874 Operating revenues 263,125 224,284 264,000 (17.3) (-0.3) 12,824 1,180 Operating
Slide 36: Financial Results Highlights
Financial Results Highlights Year on year: Higher revenues ・ Higher profits (Revenues rose due in part to a recovery in demand in the Leisure and Services business and the Traffic business as well as contributions from the Real Estate business. Although fuel expenses increased, profit improved on ev
Slide 37: Operating Results by Segment
Operating Results by Segment 〈Year-on-Year Comparisons〉 Traffic: Increased revenues and return to profitability Leisure and Services: Increased revenues and reduced loss Transport, Real Estate, Others: Increased revenues and income Distribution: Decreased revenues and reduced loss Aviation Services:
Slide 38: Traffic Business
Traffic Business （Units : Millions of yen,%） FY2022 FY2021 Percent Change Notes 1st Half 1st Half Change Compared with the first half of the previous year, when emergency declarations were Operating 64,727 55,005 9,721 17.7 issued, the number of passengers in each revenues business recovered and pus
Slide 39: Transport Business
Transport Business （Units : Millions of yen,%） FY2022 FY2021 Percent Change Notes 1st Half 1st Half Change Revenues increased due to recovery Operating 68,705 66,542 2,162 3.3 in travel demand in the maritime revenues transport business. Operating income increased due to Operating 1,928 1,680 247 14
Slide 40: Real Estate Business
Real Estate Business （Units : Millions of yen,%） FY2022 FY2021 Percent Change Notes 1st Half 1st Half Change Operating Revenues increased due to an increase in 47,556 37,553 10,003 26.6 the number of condominiums sold. revenues Operating Operating income increased due to 6,627 4,891 1,735 35.5 incre
Slide 41: Leisure and Services Business
Leisure and Services Business （Units : Millions of yen,%） FY2022 FY2021 Percent Change Notes 1st Half 1st Half Change Compared with the first half of the previous Operating year, when emergency declarations were 36,488 18,237 18,251 100.1 issued, tourism demand recovered and revenues pushed revenues
Slide 42: Distribution Business
Distribution Business （Units : Millions of yen,%） FY2022 FY2021 Percent Change Notes 1st Half 1st Half Change Overall revenues were down due in part to Operating a decrease in construction materials 30,771 31,218 -447 -1.4 handled despite department stores revenues recording higher revenues. Operati
Slide 43: Aviation Services Business
Aviation Services Business （Units : Millions of yen,%） FY2022 FY2021 Percent Change Notes 1st Half 1st Half Change Revenues increased due mainly to an Operating 11,228 10,436 791 7.6 increase in orders in the aircraft revenues maintenance business. Operating income decreased due to an Operating 351
Slide 44: Others
Others （Units : Millions of yen,%） FY2022 FY2021 Percent Change Notes 1st Half 1st Half Change Revenues increased overall due in part to Operating an expansion in orders for system-related 20,188 19,813 375 1.9 products despite a decrease in orders for revenues facility construction. Operating Opera
Slide 45: Non-Operating Income and Extraordinary Income
Non-Operating Income and Extraordinary Income (Units: Millions of yen) FY2022 FY2021 Change Notes 1st Half 1st Half Non-operating income 3,273 6,738 -3,465 Interest income 13 11 1 Dividend income 685 664 21 Equity in net earnings of affiliates 1,121 1,384 -263 Subsidies for employment adjustment 577
Slide 46: Consolidated Balance Sheets
Consolidated Balance Sheets (Units: Millions of yen) FY2022 FY2021 Change Notes 1st Half results Current assets 204,319 211,596 -7,277 Decrease in cash and deposits Non-current assets 977,440 975,301 2,139 Property and equipment 827,422 825,163 2,258 Intangible assets 11,856 11,099 757 Investments a
Slide 47: FY2022 Operating Results Forecast
05 FY2022 Operating Results Forecast Copyright © Nagoya Railroad Co., Ltd. 46
Slide 48: Premise of Operating Results Forecast
Premise of Operating Results Forecast The forecast assumes that the rate of COVID-19 infections will gradually level off and domestic economic activity will normalize from the second half of FY2022. (We do not expect social restrictions from issued emergency declarations.) Inbound demand is not expe
Slide 49: FY2022 Consolidated Operating Results Forecast
FY2022 Consolidated Operating Results Forecast (Units: Millions of yen, %) FY2022 Previous FY2021 Percent Percent current Change Forecast Change results Change (As of May) Change forecast Operating revenues 547,000 490,919 56,081 11.4 547,000 ― ― Operating income 21,000 2,932 18,068 616.2 21,000 ― ―
Slide 50: Operating Results Forecast Highlights
Operating Results Forecast Highlights Year-on-year :Higher revenues・higher profit (With recovery centered on Traffic and Leisure and Services, overall sales will increase. We expect income to rise in each category due to higher revenues.) Operating Revenues ＋ Traffic +19.7 (Railroad +10.6, Bus +4.9,
Slide 51: FY2022 Operating Results Forecast by Segment
FY2022 Operating Results Forecast by Segment (Units: Millions of yen, %) Previous FY2022 FY2021 Percent Percent Operating revenues Change Forecast Change forecast results Change Change (As of May) Traffic 135,500 115,745 19,755 17.1 137,800 -2,300 -1.7 Transport 140,700 134,766 5,934 4.4 140,400 300
Slide 52: FY2022 Non-Consolidated Operating Results Forecast
FY2022 Non-Consolidated Operating Results Forecast Figures in parentheses are the year-on year percent change (Units: Millions of yen, %) FY2022 FY2021 Latest Forecast Current Change (As of May) Change results forecast 5,774 -400 Operating revenues 91,000 85,225 91,400 (6.8) (-0.4) 1,372 -2,400 Oper
Slide 53: FY2022 EBITDA and Capital Investment Forecast
FY2022 EBITDA and Capital Investment Forecast (Units: Millions of yen) FY2022 FY2022 FY2021 FY2021 Current Change Current Change results results forecast forecast Operating income 5,900 -4,960 10,860 Operating income -1,700 -2,054 354 Depreciation and Depreciation and amortization 17,800 18,024 -224
Slide 54: Cautionary note on future projections
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. 53

Nagoya Railroad — H1 FY2022 Earnings Presentation on 6ix

Nagoya Railroad — H1 FY2022 Earnings Presentation

Slide 1: Six-month Period Ending September 30, 2022 Financial Results Presentation for Investors

Slide 2: Growth Strategies to Build Communities

Slide 3: Growth Strategies to Build Communities

Slide 4: Group Growth Strategy

Slide 5: Restructuring the Railroad business and adapting to change

Slide 6: Enhancing the ratio of passengers taking public transport (1)

Slide 7: Enhancing the ratio of passengers taking public transport (2)

Slide 8: Enhancing the ratio of passengers taking public transport (3)

Slide 9: Growing the Real Estate business (1)

Slide 10: Growing the Real Estate business (2)

Slide 11: Promoting a shift to high value added

Slide 12: Strengthening relationships with communities

Slide 13: The Group's Operating Results (full-year forecast)

Slide 14: Results summary

Slide 15: Group Business Performance (second quarter results)

Slide 16: The Company's Passengers

Slide 17: Measures to combat inflation and soaring fuel costs

Slide 18: Progress of the Meitetsu Group's Medium-term Management Plan

Slide 19: Initiatives aimed at stable management in the Railroad business

Slide 20: Initiatives following business reorganization: Real Estate business

Slide 21: Initiatives following business reorganization: Hotel business

Slide 22: Revitalizing communities and areas along train lines (1)

Slide 23: Revitalizing communities and areas along train lines (2)

Slide 24: Revitalizing communities and areas along train lines (3)

Slide 25: Meitetsu Nagoya Station District Redevelopment Project

Slide 26: Initiatives aimed at expanding business fields (1)

Slide 27: Initiatives aimed at expanding business fields (2)

Slide 28: Initiatives aimed at expanding business fields (3)

Slide 29: Initiatives aimed at expanding business fields (4)

Slide 30: Proposing and building public transport optimized for local regions

Slide 31: Expanding services for the local MaaS app CentX

Slide 32: Sustainability Initiatives (1)

Slide 33: Sustainability Initiatives (2)

Slide 34: Six-month Period Ending Financial Results

Slide 35: Six-month Period Ending Financial Results

Slide 36: Financial Results Highlights

Slide 37: Operating Results by Segment

Slide 38: Traffic Business

Slide 39: Transport Business

Slide 40: Real Estate Business

Slide 41: Leisure and Services Business

Slide 42: Distribution Business

Slide 43: Aviation Services Business

Slide 44: Others

Slide 45: Non-Operating Income and Extraordinary Income

Slide 46: Consolidated Balance Sheets

Slide 47: FY2022 Operating Results Forecast

Slide 48: Premise of Operating Results Forecast

Slide 49: FY2022 Consolidated Operating Results Forecast

Slide 50: Operating Results Forecast Highlights

Slide 51: FY2022 Operating Results Forecast by Segment

Slide 52: FY2022 Non-Consolidated Operating Results Forecast

Slide 53: FY2022 EBITDA and Capital Investment Forecast

Slide 54: Cautionary note on future projections