Kyushu Railway Company · TSE:9142
Kyushu Railway — Q3 FY23.3 Earnings Presentation
29 slides from Kyushu Railway's earnings presentation, Feb 7, 2023
Slide 1: FY23.3 Financial Results Overview, Third Quarter
FY23.3 Financial Results Overview, Third Quarter February 7, 2023
Slide 2: Contents
Contents Ⅰ Financial Results for the First Nine-Months of 3 FY23.3 Ⅱ Full-Year Performance Forecasts and Dividend 7 Forecasts for FY23.3 Ⅲ Status of Segments 13 Ⅳ Progress on the Three Key Strategies of the 19 Medium-Term Business Plan 2
Slide 3: Financial Results for the First Nine-Months of FY23.3
Ⅰ Financial Results for the First Nine-Months of FY23.3 3
Slide 4: Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2022
Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2022 （\bil） 9 months ended 9 months ended Operating revenue December, 31 December, 31 YoY 2021 2022 Although COVID-19 continued to affect performance, revenue increased thanks to a modest recovery in Operating revenue 222
Slide 5: Results for the First Nine-Months of FY23.3 (by segment)
Results for the First Nine-Months of FY23.3 (by segment) (Shown According to New Segments) （\bil） 9 months ended 9 months ended December, 31 December, 31 YoY Major factors 2021 2022 Operating revenue 222.7 261.2 38.5 117.3% Transportation 78.0 100.9 22.9 129.4% Railway Business (non-consolidated) 77
Slide 6: Results for the First Nine-Months of FY23.3 (non-consolidated)
Results for the First Nine-Months of FY23.3 (non-consolidated) (\bil) 9 months ended 9 months ended December, 31 December, 31 YoY Major Factors 2021 2022 Operating revenue 115.0 140.1 25.1 121.8% Railway transportation revenues 67.2 88.7 21.5 132.0% Increase due to moderate recovery in demand Shinka
Slide 7: Full-Year Performance Forecasts and Dividend Forecasts for FY23.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY23.3 7
Slide 8: Current Conditions and Revenues Expectations in Major Businesses
Performance Forecasts for FY23.3: Current Conditions and Revenues Expectations in Major Businesses Despite the resurgence of COVID-19, the trend toward a recovery in demand continued in each business, due to the introduction of a nationwide travel support program, the easing of protection measures
Slide 9: Consolidated Financial Forecast Highlights for FY23.3
Consolidated Financial Forecast Highlights for FY23.3 （\bil） Results Forecasts Operating revenue YoY FY22.3 FY23.3 Despite the impact of COVID-19 and a downturn in the sale of properties, we expect operating revenues to Operating revenue 329.5 381.4 51.8 115.7% increase due to gradual demand recover
Slide 10: Consolidated Financial Forecasts for FY23.3 (by segment)
Consolidated Financial Forecasts for FY23.3 (by segment) (Shown According to New Segments) (\bil) Results Forecasts YoY Major factors FY22.3 FY23.3 Operating revenue 329.5 381.4 51.8 115.7% Transportation 104.2 139.2 34.9 133.5% Increase due to moderate recovery in demand in railway business Railway
Slide 11: Non-consolidated Financial Forecasts for FY23.3
Non-consolidated Financial Forecasts for FY23.3 (\bil) Results Forecasts YoY Major factors FY22.3 FY23.3 Operating revenue 179.9 210.5 30.5 117.0% Railway transportation revenues 89.3 122.6 33.2 137.2% Increase due to moderate recovery in demand Shinkansen 27.4 43.8 16.3 159.5% Conventional Lines 61
Slide 12: FY23.3 Dividend Forecasts
FY23.3 Dividend Forecasts Shareholder return policy JR Kyushu places importance on the stable provision of return to shareholders over the long term. Over the period to FY25.3, we will aim for a consolidated dividend payout ratio of 35%, with a minimum dividend per share of ¥93.0. We will flexibly
Slide 13: Status of Segments
Il Status of Segments 13
Slide 14: Transportation Segment
Transportation Segment Q2 saw a temporary decrease in mobility demand due to the spread of COVID-19. However, operating in a business environment in which infections were increasing, in Q3, both domestic and inbound demand recovered steadily, centered on non-commuter medium- to long-distance reven
Slide 15: Railway Business (Transportation Data)
Railway Business (Transportation Data) Railway Transportation Revenues (\bil) 9 months ended 9 months ended YoY Major Factors December, 31 2021 December, 31 2022 Total 67.2 88.7 21.5 132.0% Commuter pass 21.4 22.2 0.8 104.0% Non-commuter pass 45.8 66.4 20.6 145.0% Cargo 0.0 0.0 0.0 155.7% Shinkansen
Slide 16: Real Estate and Hotels Segment: Real Estate Leasing Business
Real Estate and Hotels Segment: Real Estate Leasing Business In Q3, station building tenant sales recovered to a level similar to FY19.3, mainly due to higher demand for clothing following sudden cold spell in December. In office buildings and rental apartments, performance was affected by such
Slide 17: Real Estate and Hotels Segment: Real Estate Sales Business
Real Estate and Hotels Segment: Real Estate Sales Business Q3 revenue from the sale of condominiums was slightly lower, as we had initially anticipated. In Q4, in addition to selling properties to a private REIT, we expect to sell numerous condominiums. 【Results】 【Forecasts】 （\bil） （\bil） 9 mont
Slide 18: Real Estate and Hotels Segment: Hotel Business
Real Estate and Hotels Segment: Hotel Business In Q3, both domestic and inbound demand recovered significantly with the introduction of a nationwide travel support program and the easing of protection measures. ADR also exceeded pre-pandemic levels, pushing operating income into positive territory
Slide 19: Progress on the Three Key Strategies of the Medium-Term Business Plan
Ⅳ Progress on the Three Key Strategies of the Medium-Term Business Plan 19
Slide 20: JR Kyushu Group Medium-Term Business Plan 2022-2024
JR Kyushu Group Medium-Term Business Plan 2022-2024 Three key strategies of the medium-term business plan 2030 Long-Term Vision Robustly promoting three key strategies during the stage for returning the We will contribute to the sustainable development of Company to a growth track Kyushu through cit
Slide 21: Reduce Costs in the Railway Business Through BPR
Key strategy❶ Completing Business Structural Reforms: Reduce Costs in the Railway Business Through BPR* ＊Business Process Re-engineering We are making steady progress toward a ¥18.0 billion reduction in costs this fiscal year (fixed cost reductions through BPR: ¥14.0 billion; urgent control measur
Slide 22: Capturing Demand Recovery Opportunities and Creating New Demand
Securing Revenues in the Railway Business: Capturing Demand Recovery Opportunities and Creating New Demand Initiatives to capture the recovery in inbound demand and create new demand Initiatives to capture inbound demand Initiatives to create new demand ● Resumption of inbound promotions ● Signing o
Slide 23: City-Building in the Western Kyushu Area
Key strategy❷ Creating a Model For Building Cities that Promote Well-Being: City-Building in the Western Kyushu Area Aiming to maximize the opening effect of the Nishi-Kyushu Shinkansen by promoting development in the western Kyushu area, using the opening of the Nishi-Kyushu Shinkansen as a catalys
Slide 24: City-Building in the Fukuoka Area
Key strategy❷ Creating a Model for Building Cities that Promote Well-Being: City-Building in the Fukuoka Area In the city of Fukuoka, where the amount and rate of population growth are the largest among ordinance- designated cities in Japan, in addition to real estate development we are promoting ci
Slide 25: Rediscovering and Making Use of Regional Resources
Key Strategy ❷ Creating a Model for Building Cities That Promote Well-Being: Rediscovering and Making Use of Regional Resources Kyushu DREAM STATION: Nigiwai Partner • Select partners who will work with us to create a lively atmosphere in the entire Kyushu area by utilizing JR Kyushu stations and tr
Slide 26: The BRT on the Hitahikosan Line
Key Strategy ❷ Creating a Model for Building Cities That Promote Well-Being: The BRT on the Hitahikosan Line In summer of 2023, BRT service is scheduled to commence on the Soeda–Yoake/Hita segment, which a disaster made impassible in July 2017. The number of stations is expected to triple from p
Slide 27: Damage to the Hisatsu Line due to Heavy Rains in July 2020
Damage to the Hisatsu Line due to Heavy Rains in July 2020 We participated in the JR Hisatsu Line Review Conference held by the Ministry of Land, Infrastructure, Transport and Tourism and Kumamoto Prefecture concerning policy for restoring the Hisatsu Line. The policy on restoration is being discuss
Slide 28: Developing Businesses in New Areas: Reinforcing the Manufacturing Field
Key Strategy❸ Developing Businesses in New Areas in Which We Can Contribute: Reinforcing the Manufacturing Field We will reinforce the manufacturing sector to provide stable support to the Transportation Segment and the Real Estate and Hotels Segment, which are central to city-building, and to expan
Slide 29: Forward-Looking Statements
Forward-Looking Statements These materials contain forward-looking statements concerning business forecasts, targets, etc. of the JR Kyushu Group. These statements are judgments made by the Company based on information, projections, and assumptions available at the time of the materials’ creation. A
Kyushu Railway Company — Q3 FY23.3 Earnings Presentation on 6ix