Nagoya Railroad Co., Ltd. · TSE:9048
Nagoya Railroad — FY2021 Earnings Presentation
54 slides from Nagoya Railroad's earnings presentation, May 26, 2022
Slide 1: Fiscal Year Ended March 31, 2022 Financial Results Presentation for Investors
Fiscal Year Ended March 31, 2022 Financial Results Presentation for Investors Nagoya Railroad Co., Ltd. Securities Code: 9048 May 26, 2022 Copyright © Nagoya Railroad Co.,Ltd.
Slide 2: Setting Things on a New Track
01 Setting Things on a New Track Copyright © Nagoya Railroad Co.,Ltd. 01
Slide 3: How the Chubu Region will change with the Linear Chuo Shinkansen (1)
How the Chubu Region will change with the Linear Chuo Shinkansen (1) Areas accessible from Nagoya Station by rail or road within a 120-minute window Nagoya Tokyo (Shinagawa) ■Present ■After the start of service (Tokyo – Nagoya) Osaka ■After the start of service (Tokyo – Osaka) Copyright © Nagoya Rai
Slide 4: How the Chubu Region will change with the Linear Chuo Shinkansen (2)
How the Chubu Region will change with the Linear Chuo Shinkansen (2) Change in population with access within a 120-minute window at each location (millions) ■■Present ⇒ ■■After the start of service (Tokyo – Nagoya) ⇒ ■■After the start of service (Tokyo – Osaka) 62.28 64.28 52.17 59.49 48.16 41.04 29
Slide 5: Characteristics of the Meitetsu Group (1)
Characteristics of the Meitetsu Group (1) ① Overlap of local economic areas and our main business areas (one whole pizza pie) The Meitetsu Group’s main business area = the Chubu region We are responsible for building up communities across the entire Chubu region Copyright © Nagoya Railroad Co.,Ltd.
Slide 6: Characteristics of the Meitetsu Group (2)
Characteristics of the Meitetsu Group (2) ② Provider of a full lineup of diverse transportation services City buses Bicycle Highway sharing buses Car Taxis sharing Trains Copyright © Nagoya Railroad Co.,Ltd. Parking lots Ferries 05
Slide 7: Characteristics of the Meitetsu Group (3)
Characteristics of the Meitetsu Group (3) ③ Large scale operator of Transport and Aviation Services as well as other businesses Meitetsu Group Operating Revenue Breakdown Transport Aviation Services Others Around 30%–40% Traffic of total Real Estate Leisure and Services Distribution Copyright © Nago
Slide 8: Group Growth Strategy
Group Growth Strategy Achieve long-term growth through business activities that support society while revitalizing local communities through Group-wide efforts Mission： Work to improve the value of the region and give back to the community over the long haul. Establish a regional presence Support So
Slide 9: 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 10: Specific measures to set the Meitetsu Group on a new track
Specific measures to set the Meitetsu Group on a new track Enhancing the local daily life services field • Consolidating the retail business (excluding department stores) • M&A of daily life store ON SEVEN DAYS Systematization of Promotion of local general the Real Estate business Promotion of leisu
Slide 11: Group Business Performance (FY2022 Full-year Forecast)
Group Business Performance (FY2022 Full-year Forecast) 【Summary of Performance Forecast】 FY2022 Full-year Forecast Percent Change（%） FY2022 FY2021 Change forecast result Billons Billons Billons 56.0 Operating revenues 547.0 of 490.9 of (11.4) of yen yen yen Billons Billons Billons 18.0 Operating inc
Slide 12: Results summary
02 Results summary Copyright © Nagoya Railroad Co.,Ltd. 11
Slide 13: Group Business Performance
Group Business Performance ■ Consolidated results ■ By segment (Operating income) FY2021 results (billions of yen) Gap from forecast Year-on-year Results Year-on-year change Results (as of November) change Billions Billions Billions Traffic - 4.9 + 12.9 Operating revenues 490.9 of yen + 9.2 of yen +
Slide 14: The Company's Passengers
The Company’s Passengers ■ Railroad Passengers Trends [Total] FY2021 cumulative total: 314 million passengers; compared with FY2019: −20.1% *Figures on graphs are percent changes compared to FY2019 FY2019 FY2020 FY2021 COVID-19 patients in Aichi prefecture (Unit: Millions of people) Key measures to
Slide 15: Progress of the Meitetsu Group's Medium-term Management Plan, Turn-Over 2023
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. 14
Slide 16: Key Themes of the Medium-term Management Plan, Turn-Over 2023
Key Themes of the Meitetsu Group’s Medium-term Management Plan, Turn-Over 2023 【Management Issues Based on Changes in the Business Environment】 ①Structural reforms in our Traffic business ②Promoting real estate development in line with the gradual migration of populations and the concomitant changes
Slide 17: Restructuring the railroad business (1)
Restructuring the railroad business (1) FY2021 Overview: We promoted initiatives focused on reducing costs and significantly decreased our red ink Reducing labor and making Structural reforms: Improved revenue costs more appropriate around ¥900 million through FY2021 Enhancing our earnings power ➢ R
Slide 18: Restructuring the railroad business (2)
Restructuring the railroad business (2) Railroad business: Assumptions of operating revenues FY2021 Actual figures were lower than initial assumptions due to the protracted effects of the COVID-19 pandemic Initial assumptions: (when Turn-Over 2023 was formulated) Compared with FY2019: Around 80% Res
Slide 19: Restructuring the railroad business (3)
Restructuring the railroad business (3) Initiatives To realize long-term stable management even with lower revenues after the pandemic, we are working to from FY2022 enhance our earnings power, reduce labor, and make costs more appropriate in line with demand. Promoting structural reforms Making sta
Slide 20: Restructuring the bus and taxi businesses
Restructuring the bus and taxi businesses We promote business reorganization in each organization to enhance the efficiency and competitiveness of management. Bus business: Reorganization of the Group’s bus business By establishing a new intermediate holding company for the Group’s business, we will
Slide 21: Restructuring the hotel business
Restructuring the hotel business We will work to make business systems more efficient alongside reorganization as we clarify and implement business strategies Strategies of the hotel business in the Meitetsu Group The Meitetsu Group has positioned the hotel business going forward as the banner for i
Slide 22: Organizational Structure of the Meitetsu Group
Organizational Structure of the Meitetsu Group Traffic Railroad Established July 2022 (planned) Meitetsu Group Bus Holdings Operations HQ Reorganized October 2021 Business Meitetsu Taxi Holdings company Privatized June 2022 (planned) Transport Business Meitetsu Transportation company Reorganized Apr
Slide 23: Revitalizing communities and areas along train lines as a unified group (1)
Revitalizing communities and areas along train lines as a unified group (1) The Group will continue developing initiatives in Inuyama, which is representative of the revitalization of communities along train lines Inuyama Business Strategies Vision for Inuyama: Sustainable Inuyama, a Place People Wa
Slide 24: Revitalizing communities and areas along train lines as a unified group (2)
Revitalizing communities and areas along train lines as a unified group (2) We aim to create world-class mountain resorts and promote the Shinhotaka Ropeway renewal. Mountain viewing platform to be newly Sengoku Park established in Sengoku Park (artist’s 1st stage opening October 2022 depiction, aer
Slide 25: Revitalizing communities and areas along train lines as a unified group (3)
Revitalizing communities and areas along train lines as a unified group (3) We will enhance the provision of direct services to customers in areas along train lines Strengthening the Retail Business Strengthening healthcare services ① Consolidating the Group’s retail businesses With the aim of stren
Slide 26: Meitetsu Nagoya Station District Redevelopment Project
Moving forward with efforts related to the Meitetsu Nagoya Station District Redevelopment Project Promoting initiatives aimed at realizing comprehensive redevelopment and renovation of transport facilities The Company’s Policy on Redevelopment ➢ Urban development that maximizes value in the redevelo
Slide 27: Reinforcing earnings power in growth businesses (1)
Reinforcing earnings power, particularly that of businesses expected to grow going forward (1) Through the reorganization of the Real Estate business, we aim to gain a more solid position as an urban development operator in the Chubu region. New Business Structure and Strategies After Reorganizing t
Slide 28: Reinforcing earnings power in growth businesses (2)
Reinforcing earnings power, particularly that of businesses expected to grow going forward (2) We will expand our development business broadly along train lines and throughout the region, helping enhance value in the area. Meitetsu Gifu Station Higashi Okazaki Artist’s rendering Meitetsu Gifu We wil
Slide 29: Reinforcing earnings power in growth businesses (3)
Reinforcing earnings power, particularly that of businesses expected to grow going forward (3) Build a system to further enhance competitive businesses Conduct a public tender offer for Meitetsu Transportation We will privatize Meitetsu Transportation and create a two-company shareholder system comp
Slide 30: Reinforcing earnings power in growth businesses (4)
Reinforcing earnings power, particularly that of businesses expected to grow going forward (4) Building on existing businesses and undertaking initiatives employing advanced technologies, we promote new business areas. Regular railroad structure inspection using drones Participating in the franchise
Slide 31: Promoting DX (1)
Promoting DX (1) Promoting regional MaaS that connects transportation, daily life, and tourist services rooted in areas along train lines Start of Regional MaaS App CentX service (March 26, 2022) As the provider of a digital platform that can be used throughout the region, including Aichi Prefecture
Slide 32: Promoting DX (2)
Promoting DX (2) Cooperating with various local partners and other regional MaaS to expand service Overview of the regional MaaS concept Fulfilling role as a hub connecting nationwide and local MaaS Phase 1 ★2 Up to March 2022 ★1 ★1★1 Phase 2 From April 2022 ★2 Encouraging use of public transport Re
Slide 33: ESG Initiatives
ESG Initiatives Creating ESG initiatives for the Group based on material sustainability issues, setting KPIs, and establishing carbon-dioxide emission reduction targets Meitetsu Group Basic Sustainability Policy: Approved by the Board of Directors in September 2021 We, the Meitetsu Group, based on o
Slide 34: FY2021 Financial Results
04 FY2021 Financial Results Copyright © Nagoya Railroad Co.,Ltd. 33
Slide 35: FY2021 Financial Results
FY2021 Financial Results ＊Figures in parentheses are the year-on-year percent change. (Units: Millions of yen, %) （単位：百万円、％） Latest Forecast Notes FY2021 FY2020 Change* Notes (As of Nov.) Change 9,274 -9,080 Operating revenues ※ 490,919 481,645 500,000 (1.9) (-1.8) 19,287 -67 Operating income 2,932
Slide 36: Financial Results Highlights
Financial Results Highlights Year-on-year:Higher revenues・A return to profitability (Sales increased due to shrinking pandemic effects from the previous year. Operating income, ordinary income, and profit returned to the black due to improved revenues and expenses.) (Unit: Billions of yen) Operating
Slide 37: Operating Results by Segment
Operating Results by Segment （Units : Millions of yen,%） （単位：百万円、％） FY2021 Percent Change Previous Forecast Operating revenues FY2021 (excluding effects of FY2020 Change Percent Change (excluding effects of revenue recognition changes) (Nov. 2021) Change Percent Change revenue recognition changes) T
Slide 38: Traffic Business
Traffic Business （Units : Millions of yen,%） （単位：百万円、％） The im pact of Percent Real increase FY2021 FY2020 Change revenue recognition or decrease Notes Change changes Operating Revenues increased due to reduced effects revenues 115,745 104,995 10,750 10.2 223 10,527 of the COVID-19 pandemic from the
Slide 39: Transport Business
Transport Business （単位：百万円、％） （Units : Millions of yen,%） Percent The im pact of Real increase or FY2021 FY2020 Change revenue recognition decrease Notes Change changes Revenues increased due to a recovery from Operating the previous fiscal year in cargo handling 134,766 128,901 5,865 4.6 -192 6,057
Slide 40: Real Estate Business
Real Estate Business （Units （単位：百万円、％） : Millions of yen,%） The im pact of Percent Real increase FY2021 FY2020 Change revenue recognition or decrease Notes Change changes Revenues increased due to an increase in sales of condominium land in addition to Operating 89,416 85,402 4,013 4.7 139 3,873 the
Slide 41: Leisure and Services Business
Leisure and Services Business （単位：百万円、％） （Units : Millions of yen,%） Percent The im pact of Real increase or FY2021 FY2020 Change revenue recognition decrease Notes Change changes Revenues increased due to reduced effects Operating 47,572 20,007 27,565 137.8 17,317 10,248 of the COVID-19 pandemic fr
Slide 42: Distribution Business
Distribution Business （Units （単位：百万円、％） : Millions of yen,%） Percent The im pact of Real increase or FY2021 FY2020 Change revenue recognition decrease Notes Change changes Overall revenues were down due to the transfer of some subsidiaries in the Operating previous year bringing down department reve
Slide 43: Aviation Services Business
Aviation Services Business （単位：百万円、％） （Units : Millions of yen,%） Percent The im pact of Real increase or FY2021 FY2020 Change revenue recognition decrease Notes Change changes Revenues increased due mainly to an Operating 23,364 22,983 380 1.7 ― 380 increase in orders in the aircraft revenues maint
Slide 44: Others
Others （Units : Millions of yen,%） Percent The impact of Real increase or FY2021 FY2020 Change revenue recognition decrease Notes Change changes Operating Increase due to higher orders for 46,560 45,862 698 1.5 -525 1,224 system-related products, etc. revenues Operating Increase in operating income
Slide 45: Non-Operating Income and Extraordinary Income
Non-Operating Income and Extraordinary Income (Units:（単位：百万円） Millions of yen) FY2021 FY2020 Change Notes Non-operating income 13,648 12,626 1,021 Interest income 22 25 -2 Dividend income 1,171 1,259 -87 Equity in net earnings of affiliates 3,257 1,253 2,003 Subsidies for employment adjustment 4,184
Slide 46: Consolidated Balance Sheets
Consolidated Balance Sheets (Units: Millions of yen) （単位：百万円） FY2021 FY2020 Change Notes Current assets 211,596 215,097 -3,500 Non-current assets 975,301 976,033 -732 Capital Investment +49,887 Property and equipment 825,163 831,429 -6,265 Depreciation and amorization -38,538 Impairment loss on fixe
Slide 47: EBITDA and Capital Investment
EBITDA and Capital Investment (Units: Millions of yen) （単位：百万円） FY2021 FY2020 Change FY2021 FY2020 Change Operating income -4,960 -17,866 12,905 Operating income -2,054 -2,185 130 Depreciation and Depreciation and amortization 18,024 18,351 -327 amortization 1,084 1,185 -101 Traffic ＥＢＩＴＤＡ(①) 13,063
Slide 48: FY2022 Operating Results Forecast
05 FY2022 Operating Results Forecast Copyright © Nagoya Railroad Co.,Ltd. 47
Slide 49: Premise of Operating Results Forecast
Premise of Operating Results Forecast The forecast assumes that although COVID-19 infections will continue to emerge at a certain rate, domestic economic activity will recover moderately toward the middle of fiscal 2022 and normalize from the second half of the year. In-bound demand is not expected
Slide 50: FY2022 Consolidated Operating Results Forecast
FY2022 Consolidated Operating Results Forecast （Units（単位：百万円、％） : Millions of yen,%） FY2022 FY2021 Percent Change Current forecast results Change Operating revenues 547,000 490,919 56,081 11.4 Operating income 21,000 2,932 18,068 616.2 Non-operating income 4,800 13,648 -8,848 Non-operating expenses
Slide 51: Operating Results Forecast Highlights
Operating Results Forecast Highlights Year-on-year: Higher revenues and a return to profitability (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.) (Unit: Billions of yen) Operating Revenues ＋
Slide 52: FY2022 Operating Results Forecast by Segment
FY2022 Operating Results Forecast by Segment （Units : Millions of yen,%） FY2022 FY2021 Percent Operating revenues Change Current forecast results Change Traffic 137,800 115,745 22,055 19.1 Transport 140,400 134,766 5,634 4.2 Real Estate 90,500 89,416 1,084 1.2 Leisure and Services 68,200 47,572 20,6
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 8,700 -4,960 13,660 Operating income -1,200 -2,054 854 Depreciation and Depreciation and amortization 17,800 18,024 -224
Slide 54: 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.