Kyushu Railway Company · TSE:9142
Kyushu Railway — Q3 FY2021/3 Earnings Presentation
27 slides from Kyushu Railway's earnings presentation, Feb 9, 2021
Slide 1: Financial Results Overview, Third Quarter
FY21.3 Financial Results Overview, Third Quarter February 9, 2021
Slide 2: Contents
Contents Third quarter financial results overview Ⅰ. 3 and full-year forecasts Ⅱ. Status of major segments 12 Ⅲ. Initiatives for the Next Fiscal Year 20 2
Slide 3: Third Quarter Financial Results Overview and Full-Year Forecasts
Ⅰ THIRD QUARTER FINANCIAL RESULTS OVERVIEW AND FULL-YEAR FORECASTS 3
Slide 4: Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2020
Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2020 Operating revenue Substantial decline in revenue due to such factors as （\bil） the decrease in railway transportation revenues 9 months ended 9 months ended resulting from the influence of the spread of the YoY Decem
Slide 5: FY2021/3 — Quarterly Results
FY2021/3 — Quarterly Results Operating revenues in each business continued to follow a recovery trend, and we implemented thorough cost management to control operating expenses. For the third quarter, we achieved profitability at the consolidated operating income level, and EBITDA showed steady
Slide 6: Results for the First Nine Months of FY21.3 (by segment)
Results for the First Nine Months of FY21.3 (by segment) （\bil） 9 months ended 9 months ended YoY Major factors December 31, 2019 December 31, 2020 Operating revenue 319.6 202.4 (117.2) 63.3% Transportation 135.9 70.2 (65.6) 51.7% Decrease in passenger demand (railway, hydrofoil ferry, bus) due to i
Slide 7: Results for the First Nine Months of FY21.3 (non-consolidated)
Results for the First Nine Months of FY21.3 (non-consolidated) (\bil) 9 months ended 9 months ended December 31, December 31, YoY Major Factors 2019 2020 Operating revenue 160.2 97.0 (63.2) 60.6% Railway transportation 116.2 56.6 (59.6) 48.7% Influence of the COVID-19 infection revenues Shinkansen 4
Slide 8: Consolidated Financial Highlights for FY21.3
Consolidated Financial Highlights for FY21.3 Operating revenue Results Forecasts YoY Operating revenue declined significantly owing FY20.3 FY21.3 in part to a decrease in railway transportation Operating revenue 432.6 291.7 (140.9) 67.4% revenues [¥(69.7) billion] and the influence of changing JR Ky
Slide 9: Consolidated Financial Forecasts (by segment)
Consolidated Financial Forecasts (by segment) (\bil) Results Forecasts YoY Major factors FY20.3 FY21.3 Operating revenue 432.6 291.7 (140.9) 67.4% Transportation 173.7 97.3 (76.4) 56.0% Decrease in passenger demand (railway, hydrofoil ferry, bus) due to influence of the COVID-19 infection Railway Bu
Slide 10: Non-consolidated Financial Forecasts
Non-consolidated Financial Forecasts (\bil) Results Forecasts YoY Major factors Cost FY20.3 FY21.3 reductions Operating revenue 214.8 145.0 (69.8) 67.5% Railway transportation 147.3 77.6 (69.7) 52.7% Influence of the COVID-19 infection revenues Shinkansen 52.3 24.0 (28.3) 45.9% Conventional Lines 95
Slide 11: Dividend Forecasts
Dividend Forecasts The Company views the return of profits to shareholders as one of its most important management tasks. Accordingly, the Company believes it is important to provide stable shareholder returns over the long term. Over the period to the fiscal year ending March 31, 2022, the Compan
Slide 12: Status of Major Segments
Ⅱ STATUS OF MAJOR SEGMENTS 12
Slide 13: Status of major segments (1)
Status of major segments (1) In the first half of the third quarter, there was a basic trend of recovery, but there was a slowdown from late November. Customer usage weakened further due to the declaration of a state of emergency, etc. Transportation Segment Retail and Restaurants * YoY figures
Slide 14: Status of major segments (2)
Status of major segments (2) Status of state of emergency in Kyushu Declaration of state of emergency：Fukuoka Prefecture(January 14 to March 7 * Could possibly be shortened) Requests from local governments: Saga, Nagasaki, Kagoshima, Miyazaki Prefectures (~February 7) , Kumamoto Prefecture (~Feb
Slide 15: Transportation Segment
Transportation Segment 【Results】 (\bil) 【Forecasts】 （\bil） 9 months ended 9 months ended Results Forecasts December 31, December 31, YoY YoY FY20.3 FY21.3 2019 2020 Operating revenue 135.9 70.2 (65.6) 51.7% 173.7 97.3 (76.4) 56.0% Railway Business 165.2 92.2 (73.0) 55.8% 129.4 66.3 (63.0) 51.3% (non
Slide 16: Railway business
Railway business Railway Transportation Revenues (\bil) 9 months ended 9 months ended YoY Major Factors December 31, 2019 December 31, 2020 Total 116.2 56.6 (59.6) 48.7% Commuter pass 25.1 19.9 (5.2) 79.3% Non-commuter pass 91.0 36.6 (54.4) 40.2% Shinkansen 42.2 16.7 (25.5) 39.6% Decline due to infl
Slide 17: Real Estate and Hotels Segment (1)
Real Estate and Hotels Segment (1) Real estate leasing business 【Results】 （\bil） 【Forecasts】 （\bil） 9 months ended 9 months ended Results Forecasts December 31, December 31, YoY YoY FY20.3 FY21.3 2019 2020 Operating revenue 41.4 36.4 (5.0) 87.8% 55.2 49.5 (5.7) 89.6% Operating income 13.3 8.8 (4.5)
Slide 18: Real Estate and Hotels Segment (2)
Real Estate and Hotels Segment (2) Condominium sales business 【Results】 （\bil） 【Forecasts】 （\bil） 9 months ended 9 months ended Results Forecasts December 31, December 31, YoY YoY FY20.3 FY21.3 2019 2020 Operating revenue 7.8 7.3 (0.4) 93.6% 18.9 21.5 2.5 113.6% Operating income 0.4 0.0 (0.3) 21.2%
Slide 19: Retail and Restaurant Segment
Retail and Restaurant Segment 【Results】 （\bil）【Forecasts】 （\bil） 9 months ended 9 months ended Results Forecasts December 31, December 31, YoY YoY FY20.3 FY21.3 2019 2020 Operating revenue 79.7 41.1 (38.5) 51.7% 104.6 52.7 (51.9) 50.4% Operating income 2.4 (1.9) (4.4) - 2.8 (2.2) (5.0) - EBITDA 3.6
Slide 20: Initiatives for the Next Fiscal Year
Ⅲ INITIATIVES FOR THE NEXT FISCAL YEAR 20
Slide 21: Issues Arising Due to COVID-19 and Status of Initiatives
Issues Arising Due to COVID-19 and Status of Initiatives The Group’s Circumstances It is not possible to forecast the resolution of the COVID-19 infection, and the demand situation is expected to be challenging in the future. In achieving sustainable business operations, we face the management i
Slide 22: Increasing Efficiency in the Railway Business (1): BPR strategy
Increasing Efficiency in the Railway Business (1): BPR strategy Goals of BPR strategy （* Business Process Re-engineering） Aiming to generate stable profits even though revenues from railway transportation will not return to the level before COVID-19, we will implement cost structure reforms and re
Slide 23: Increasing Efficiency in the Railway Business (2): Utilizing Digital Technologies
Increasing Efficiency in the Railway Business (2): Utilizing Digital Technologies Optimizing rolling stock operation through the use of quantum computing technologies. We will work together with Groovenauts, Inc., to start verification of the optimization of rolling stock operation with the use of
Slide 24: Increasing Efficiency in the Railway Business (3): Schedule Revision
Increasing Efficiency in the Railway Business (3): Schedule Revision Difficult usage conditions Accompanying the establishment of teleworking and new lifestyles, customer usage is declining. In the short term, we do not expect future trends in such areas as movement and consumption to return to
Slide 25: Measures to Increase Revenues in the Railway Business (1): Reevaluating Discount Tickets
Measures to Increase Revenues in the Railway Business (1): Reevaluating Discount Tickets Railway fare strategy In the past, we maintained competitiveness versus other means of transportation by offering discount tickets with high discount rates. In recent years, demand and supply have been refle
Slide 26: Measures to Increase Revenues in the Railway Business (2): Shinkansen Cargo Transport
Measures to Increase Revenues in the Railway Business (2): Shinkansen Cargo Transport Potential of Shinkansen cargo transport Strengths of Shinkansen in Securing new Utilization of surplus space terms of speed and regular schedule × on Shinkansen trains earnings opportunities Trial within the Group
Slide 27: 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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