Nagoya Railroad Co., Ltd. · TSE:9048
Nagoya Railroad — H1 FY2023 Earnings Presentation
49 slides from Nagoya Railroad's earnings presentation, Nov 21, 2023
Slide 1: Six-month Period Ending September 30, 2023 Financial Results Presentation for Investors
Six-month Period Ending September 30, 2023 Financial Results Presentation for Investors Nagoya Railroad Co., Ltd. Securities Code: 9048 November 21, 2023 Copyright © Nagoya Railroad Co.,Ltd. 1
Slide 2: What we want to communicate today
What we want to communicate today: 01 Our approach to medium- to long-term strategies 1 Biggest themes 2 Key areas of urban development 3 Areas to strengthen the tourism business 4 Strengthening projects that create communities and support society 02 Revisions to results forecasts 03 Quarterly resul
Slide 3: Our approach to medium- to long-term business strategies
01 Our approach to medium- to long-term business strategies Copyright © Nagoya Railroad Co.,Ltd. 3
Slide 4: Biggest themes: Promoting attractive regional and urban development
1 Biggest themes Era of major global exchange Intensifying competition between communities Business and cities environment (especially intensifying competition for acquiring human resources) Need to attract people from around Japan and the world Current state of human resources flowing out from Ai
Slide 5: Key areas of urban development—Nagoya city center
2 Key areas of urban development —Nagoya city center: Nagoya Station area (Meieki) , Kanayama and Jingū-mae area Meitetsu Seto Line μPLAT Kanayama To Gifu (Opened 2014, renovated 2023) To Owariseto Meieki Sakae Photographed April 2023 area area Hotel Grand Court Nagoya (Made a subsidiary in 2021) Me
Slide 6: Key areas of urban development: Nagoya Station area
2 Key areas of urban development—Nagoya city center: Nagoya Station area Aiming to maximize the value of Nagoya Advancing the Meitetsu Nagoya Station District Development of Meieki Minami District Redevelopment Project Basic policies to the redevelopment of Nagoya Station ➢Enhance the convenience of
Slide 7: Key areas of urban development: Kanayama and Jingū-mae area
2 Key areas of urban development—Nagoya city center: Kanayama and Jingū-mae area Formation of a third axis in the city center after Nagoya Station and Sakae (including Fushimi and Osu) Kanayama District Jingū-mae District ➢It is possible to access major tourist and ➢Entrance to Atsuta Jingu, which i
Slide 8: Key areas of urban development: Hub stations along the train line
2 Key areas of urban development: Hub stations along the train line At hub stations along the train line, we strive to enhance local value and realize urban development sought by local communities Meitetsu Higashi Okazaki Meitetsu Gifu Gifu Station Station Connecting sites owned in Uniformly upg
Slide 9: Areas to strengthen the tourism business: Inuyama
3 Areas to strengthen the tourism business: Inuyama Capturing broad-area overnight tourism demand, not just local and day-trip demand Hotel Indigo Inuyama National treasure teahouse Urakuen Garden Jo-an Urakuen Japan Monkey Park The Little World Museum of Man Enhancing walkability of areas HOTEL μ S
Slide 10: Areas to strengthen the tourism business: Okuhida and Takayama
3 Areas to strengthen the tourism business: Okuhida and Takayama Initiatives aimed at creating world-class mountain resorts Plan to improve areas around stations at the base, Creating a continuous walkable tourist area midpoint, and peak of the mountain for the Shinhotaka between Matsumoto and Takay
Slide 11: Strengthening projects that create communities: real estate business
4 Strengthening projects that create communities: real estate business Establishing a business model that ensures accelerated growth in the real estate business as well as financial soundness and excess funding procurement capacity Constructing a Constructing Accelerating growth of the foundation mu
Slide 12: Real estate business: Main development pipeline
4 Strengthening projects that create communities —Real estate business: Main development pipeline Main projects in the development Note 1. Excludes development of hub stations along rail lines and planning stages Note 2. Plans are current forecasts but could change later. Development name Location C
Slide 13: Strengthening projects that support society: Transport business
4 Strengthening projects that support society: Transport business Strengthening the special consolidated carrier business by constructing a new joint venture system Conclusion of basic agreement between Meitetsu and NIPPON EXPRESS Holdings Inc. (August 9, 2023) Began thorough discussions on integrat
Slide 14: Revisions to results forecasts
02 Revisions to results forecasts Copyright © Nagoya Railroad Co.,Ltd. 14
Slide 15: Revisions to results forecasts: Consolidated results forecast summary
Revisions to results forecasts Consolidated results forecast summary FY2023 full-year forecast Revised forecasts Previous Change Revised Previous forecasts forecasts forecasts Billions Billions Billions ROE Operating revenues 594.0 yofen 588.0 of y en 6.0 of y en (net income/shareholders’ equity) 5.
Slide 16: Revisions to results forecasts: full-year performance and segment income
Revisions to results forecasts Summary of full-year consolidated performance Breakdown of Operating Income by Segment (Billions of yen: rounded to the first decimal point) forecasts for FY2023 Revised forecasts Previous forecast Change Traffic 11.7 8.0 + 3.7 Revised forecasts Previous forecasts Chan
Slide 17: Results summary
03 Results summary Copyright © Nagoya Railroad Co.,Ltd. 17
Slide 18: Group Business Performance (second quarter results)
Group Business Performance (second quarter results) Summary of Consolidated Results Quarterly results summary Operating revenues: 【Increased revenues】 Despite a decline in revenues from the Real Estate business, overall revenues increased thanks mainly to recovery in demand for the Leisure and Servi
Slide 19: The Company's Passengers and Transfer Revenues
The Company’s Passengers and Transfer Revenues ■ Railroad Passengers Results Year-on-year Percent change Transfer Year-on-year Percent change Passengers FY2023 2Q compared w ith FY2023 2Q percent change compared w ith percent change FY2019 revenues FY2019 Billions Non-commuters 58,320 Passengers tho
Slide 20: Progress of the Meitetsu Group's Medium-term Management Plan, Turn-Over 2023
Progress of the Meitetsu Group’s 04 Medium-term Management Plan, Turn-Over 2023 ～Setting Things on a New Track～ Copyright © Nagoya Railroad Co.,Ltd. 20
Slide 21: Fare Revisions in the Traffic Business
Fare Revisions in the Traffic Business Date of Fare Revisions (scheduled) Company name Date Area Date Railroad Nagoya Railroad March 16, 2024 (planned) Nagoya area Implemented on December 5, 2022 business Toyohashi Railroad March 16, 2024 (planned) Owari and Mikawa Implemented on March 20, 2023 area
Slide 22: Initiatives aimed at stable management in the Railroad business
Initiatives aimed at stable management over the medium to long term in the Railroad business Execute structural reforms aimed at realizing a sustainable Railroad business while steadily implementing necessary measures to secure business continuity Making steady progress under initiatives undertaken
Slide 23: Further strengthening the earnings power of the Real Estate business
Further strengthening the earnings power of the Real Estate business Further strengthening the earnings power of the Real Estate business by developing the parking business and high-end condominiums for sale Enhancing the profitability of the Unveiled “FUDE,” the highest-grade brand of parking busin
Slide 24: Initiatives to Expand Our Business Areas
Initiatives to Expand Our Business Areas Expanding the scope of business collaboration with external partners at a faster pace Formed a capital and business alliance with Made Rokugo CO., LTD. and Rokuou Estate Co., Ltd. Prodrone Co., Ltd. (July 25, 2023) subsidiaries (November 15, 2023) Overview 〈C
Slide 25: Promoting data-driven marketing (DX)
Promoting data-driven marketing (DX) Aiming for expansion in LTV by promoting data-driven marketing Promoting the digital marketing business that Opened the official LINE account of the Meitetsu connects railroad stations and stores along Group (September) train lines (September) ➢We invite resident
Slide 26: Initiatives to enhance the ratio of passengers taking public transport
Initiatives to enhance the ratio of passengers taking public transport Promoting various initiatives aimed at enhancing the ratio of passengers taking public transport by, for example, expanding the scope of mobility <Trend in number of members and usage> Car sharing and bicycle sharing Number Enhan
Slide 27: Sustainability Initiatives (1)
Sustainability Initiatives (1) Working in collaboration with local communities to realize a sustainable society while striving to reduce environmental burden Signed an agreement with Nagoya City regarding Initiatives involving the installation of solar panels the supply of electricity via the use of
Slide 28: Sustainability Initiatives (2)
Sustainability Initiatives (2) Striving to empower diverse human resources to achieve success in order to secure sustainable corporate growth Expanding the number of mid-career hires* Promote women’s empowerment* ■Mid-career hires (career-track employees) 男性 Male 女性 Female ■New recruits 男性 Male 女性 F
Slide 29: Six-month Period Ending Financial Results
05 Six-month Period Ending Financial Results Copyright © Nagoya Railroad Co.,Ltd. 29
Slide 30: 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,%） Previous FY2023 FY2022 Change Notes Forecast Change 1st Half 1st Half (As of May) 20,603 728 Operating revenues 283,728 263,125 283,000 (7.8) (0.3) 5,720 3,400 Operating i
Slide 31: 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 as well as an increase in passengers in the Railroad business. Although personnel costs increased, profit improved on every level.) Oper
Slide 32: Operating Results by Segment
Operating Results by Segment （Units : Millions of yen,%） FY2023 FY2022 Percent Previous Forecast Percent Operating revenues Change Change 1st Half 1st Half Change (As of May) Change Traffic 72,636 64,727 7,909 12.2 72,200 436 0.6 Transport 69,347 68,705 642 0.9 71,000 -1,652 -2.3 Real Estate 45,517
Slide 33: Traffic Business
Traffic Business （Units : Millions of yen,%） FY2023 FY2022 Percent Change Notes 1st Half 1st Half Change Revenues increased due in part to Operating 72,636 64,727 7,909 12.2 higher passenger numbers in the revenues Railroad and Bus businesses. Profit increased due to higher Operating 8,063 2,710 5,3
Slide 34: Transport Business
Transport Business （Units : Millions of yen,%） FY2023 FY2022 Percent Change Notes 1st Half 1st Half Change Despite the negative effects on the income of the Operating Truck business of poor performance in the 69,347 68,705 642 0.9 International Cargo business, overall revenues revenues increased due
Slide 35: Real Estate Business
Real Estate Business （Units : Millions of yen,%） FY2023 FY2022 Percent Change Notes 1st Half 1st Half Change Operating Revenues decreased due to a decline in the 45,517 47,556 -2,039 -4.3 number of condominiums for purchase delivered revenues despite higher revenues in the Rentals business. Operatin
Slide 36: Leisure and Services Business
Leisure and Services Business （Units : Millions of yen,%） FY2023 FY2022 Percent Change Notes 1st Half 1st Half Change Revenues increased, especially in the Travel and Operating 48,365 36,488 11,876 32.5 Hotel businesses, due to a recovery in tourism revenues demand. The business returned to profitab
Slide 37: Distribution Business
Distribution Business （Units : Millions of yen,%） FY2023 FY2022 Percent Change Notes 1st Half 1st Half Change Revenues increased due to higher revenues from Operating department stores and contributions from subsidiaries 31,666 30,771 894 2.9 engaged in the sale of other goods that were included in
Slide 38: Aviation Services Business
Aviation Services Business （Units : Millions of yen,%） FY2023 FY2022 Percent Change Notes 1st Half 1st Half Change Revenues increased due to higher orders in the Operating 11,941 11,228 713 6.4 aviation maintenance business and the in-flight revenues catering business. Operating Despite higher reven
Slide 39: Others
Others （Units : Millions of yen,%） FY2023 FY2022 Percent Change Notes 1st Half 1st Half Change Operating Revenues increased due to higher orders related to 21,725 20,188 1,537 7.6 systems. revenues Operating Despite higher revenues, profit decreased due in 481 522 -40 -7.8 part to costs associated w
Slide 40: Non-Operating Income and Extraordinary Income
Non-Operating Income and Extraordinary Income (Units: Millions of yen) FY2023 FY2022 Change Notes 1st Half 1st Half Non-operating income 3,087 3,273 -185 Interest income 21 13 8 Dividend income 757 685 71 Equity in net earnings of affiliates 1,262 1,121 141 Subsidies for employment adjustment 22 0 2
Slide 41: Consolidated Balance Sheets
Consolidated Balance Sheets (Units: Millions of yen) FY2023 FY2022 Change Notes 1st Half results Current assets 216,662 226,902 -10,240 Decrease in cash and deposits Non-current assets 1,021,256 1,004,476 16,779 Capital investment +23,816 Property and equipment 861,664 854,026 7,637 Depreciation and
Slide 42: FY2023 Operating Results Forecast
06 FY2023 Operating Results Forecast Copyright © Nagoya Railroad Co.,Ltd. 42
Slide 43: Premise of Operating Results Forecast
Premise of Operating Results Forecast The forecast for FY2023 assumes that in a post-pandemic environment, Japan will see the economic effects diminish and the new normal continue. Inbound demand is expected to be around 50% of the level seen in FY2019. The governmental measures to ease spikes in fu
Slide 44: FY2023 Consolidated Operating Results Forecast
FY2023 Consolidated Operating Results Forecast (Units: Millions of yen, %) FY2023 Previous Percent FY2022 Percent current Forecast Change Change (As of May) Change results Change forecast Operating revenues 594,000 588,000 6,000 1.0 551,504 42,496 7.7 Operating income 30,000 26,500 3,500 13.2 22,731
Slide 45: Operating Results Forecast Highlights
Operating Results Forecast Highlights Year-on-year: Higher revenues ・ Higher profits (Revenues in every business will increase, especially in the Real Estate Business as well as the Traffic Business and Leisure and Services Business, which are seeing demand recovering. We expect profit at each stage
Slide 46: FY2023 Operating Results Forecast by Segment
FY2023 Operating Results Forecast by Segment (Units: Millions of yen, %) Previous FY2023 Percent FY2022 Percent Operating revenues Forecast Change Change forecast (As of May) Change results Change Traffic 145,400 144,000 1,400 1.0 132,483 12,917 9.7 Transport 138,000 142,000 -4,000 -2.8 136,998 1,00
Slide 47: FY2023 Non-consolidated Operating Results Forecast
FY2023 Non-consolidated Operating Results Forecast Figures in parentheses are the year-on year percent change (Units: Millions of yen, %) FY2023 Previous FY2022 Current Forecast Change Change (As of May) results forecast 1,300 6,367 Operating revenues 96,700 95,400 90,332 (1.4) (7.0) 3,200 3,658 Ope
Slide 48: FY2023 EBITDA and Capital Investment Forecast
FY2023 EBITDA and Capital Investment Forecast (Units: Millions of yen) FY2023 FY2023 FY2022 FY2022 Current Change Current Change results results forecast forecast Operating income 11,700 4,614 7,086 Operating income -2,400 -2,475 75 Depreciation and Depreciation and amortization 18,000 17,702 298 am
Slide 49: Notice 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.