Kyushu Railway Company · TSE:9142

Kyushu Railway — Q3 FY20.3 Earnings Presentation

23 slides from Kyushu Railway's earnings presentation, Feb 10, 2020

  1. Slide 1: FY20.3 Financial Results Overview, Third Quarter

    FY20.3 Financial Results Overview, Third Quarter February 10, 2020 Kyushu Railway Company

  2. Slide 2: Contents

    Contents Ⅰ Financial Results for the Nine-month Period 3 Ended December 31, 2019 Ⅱ Forecasts for FY20.3 10 Ⅲ Status of Medium-Term Business Plan Initiatives 14 2

  3. Slide 3: Financial Results for the Nine-month Period Ended December 31, 2019

    Ⅰ. Financial Results for the Nine-month Period Ended December 31, 2019 3

  4. Slide 4: Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2019

    Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2019 (Year on Year)  Operating revenue up for the third consecutive year (record high)  Operating income down for the second consecutive year  Net income attributable to owners of the parent down for the second consecu

  5. Slide 5: Consolidated Income Statements

    Consolidated Income Statements （\bil） 9 months ended 9 months ended December, 31 December, 31 YoY Major factors 2018 2019 Operating revenue 314.1 319.6 5.4 101.7% Increase in railway transportation revenue, etc. Elimination of special tax measures (JR Kyushu) Operating expense 263.9 273.7 9.7 103.7%

  6. Slide 6: Segment Information [Summary]

    Segment Information 【Summary】 （\bill） 9 months ended 9 months ended YoY Major factors December, 31 2018 December, 31 2019 Operating revenue 314.1 319.6 5.4 101.7% Transportation 133.0 135.9 2.8 102.2% Railway Business (non-consolidated) 125.9 129.4 3.4 102.7% Increase in revenues from railway transp

  7. Slide 7: Balance Sheet

    Balance Sheet (\bil) 9 months ended Increase/ FY19.3 December 31, Major Factors (decrease) 2019 Total Assets 801.4 819.6 18.2 Cash and time deposits 16.9 22.6 5.6 Short-tem securities 19.9 27.1 7.2 Money held in trust 56.9 43.0 (13.8) Decrease due to redemption and sales of bonds, etc. Property, pla

  8. Slide 8: Non-consolidated Income Statements

    Non-consolidated Income Statements (\bil) 9 months ended 9 months ended YoY Majour Factors December 31, 2018 December 31, 2019 Operating revenue 157.5 160.2 2.6 101.7% Railway transportation Longer Golden Week holiday period, operations resumed on the Kyudai Main Line, etc. revenue 114.2 116.2 1.9 1

  9. Slide 9: Railway business

    Railway business Transportation Revenue (\bil) 9 months ended 9 months ended YoY Majour Factors December, 2018 December, 2019 Total 114.2 116.2 1.9 101.7% Commuter pass 24.8 25.1 0.3 101.3% Non-commuter pass 89.4 91.0 1.6 101.8% Shinkansen 41.7 42.2 0.4 101.2% • Basic trend (approx. 101% ) • Increas

  10. Slide 10: Forecasts for FY20.3

    II. Forecasts for FY20.3 10

  11. Slide 11: Consolidated Financial Highlights for FY20.3

    Consolidated Financial Highlights for FY20.3 (\bil) Forecasts Forecasts Results Difference from FY20.3 FY20.3 YoY FY19.3 previous forecast （11/5） （2/10） Operating revenue 440.3 442.3 442.3 1.9 100.4% - Operating income 63.8 56.6 56.6 (7.2) 88.6% - Ordinary income 66.5 57.2 57.2 (9.3) 86.0% - Net inc

  12. Slide 12: Consolidated Financial Forecasts (By segment)

    Consolidated Financial Forecasts (By segment) (\bil) Results Forecasts FY20.3 Major Factors FY19.3 (11/5) (2/10) C-A C-B (C-B) A B C Operating revenue 440.3 442.3 442.3 1.9 100.4% - Transportation 181.8 180.4 180.4 (1.4) 99.2% - Railway Business (non-consolidated) 172.2 171.1 171.1 (1.1) 99.4% - Con

  13. Slide 13: Non-consolidated Financial Forecasts

    Non-consolidated Financial Forecasts (\bil) Results Forecasts FY20.3 FY19.3 C-A C-B （11/5） （2/10） A B C Operating revenue 221.9 221.1 221.1 (0.8) 99.6% - Railway transportation revenue 151.4 153.5 153.5 2.0 101.3% - Shinkansen 54.9 55.7 55.7 0.7 101.4% - Conventional Lines 96.5 97.8 97.8 1.2 101.3%

  14. Slide 14: Status of Medium-Term Business Plan Initiatives

    Ⅲ Status of Medium-Term Business Plan Initiatives 14

  15. Slide 15: Position and Priority Initiatives of the JR Kyushu Group Medium-Term Business Plan 2019-2021

    Position and Priority Initiatives of the JR Kyushu Group Medium-Term Business Plan 2019-2021 15

  16. Slide 16: Building sustainable railway services by improving revenue and expenditure

    Building sustainable railway services by improving revenue and expenditure Pursuing further earnings opportunities Enhancing productivity Announcement of introduction of new D&S Targeting the realization of self-driving trains in order to promote tourism demand trains, starting test operations for t

  17. Slide 17: Railway Business — Outline of Fares/Charges and Measures to Increase Revenues

    Railway Business — Outline of Fares/Charges and Measures to Increase Revenues ●Fares/charges (¥bil) （億円） 鉄道事業における営業利益の推移 Operating income in the railway business 400 40 Charges →Compensation for the use of facilities other than transportation and 28.2 300 30 25.0 26.7 for the provision of additional

  18. Slide 18: Implementing Strategic City-Building Initiatives in the Regions Around our Business

    Implementing Strategic City-Building Initiatives in the Regions Around our Business Kumamoto Station Area Development Miyazaki Station west entrance development  Plan for new development of Kumamoto Station West Building (provisional  Two condominium buildings are under name) on the Shinkansen ent

  19. Slide 19: Categories of Growth Investment

    Categories of Growth Investment Investment category Characteristics Major investments ・Development centered on commercial facilities, using sites owned by the ・JR Hakata City (Commercial facilities, etc.) Station building ① Company ・JR Oita City (Commercial facilities, etc.) Within Kyushu developmen

  20. Slide 20: Initiatives in the Oita Station area

    Implementing Strategic City-Building Initiatives in the Regions Around our Business -Initiatives in the Oita Station area Maximizing synergy effects through station area development (¥bil) Station building (Amu Plaza Oita) sales 駅ビル(アミュプラザおおいた)売上高 250 25 24.1 241 240 24 23.3 233 230 22.4 224 23 220

  21. Slide 21: Growth and Evolution in New Areas

    Growth and Evolution in New Areas Strategic reevaluation of business portfolio and new business initiatives  During the current fiscal year, we have already concluded agreements to transfer our leasing business (October 2019) and hospital business (planned date of transfer: April 2020)  In Decembe

  22. Slide 22: Take on the challenge of new mobility services (MaaS)

    Take on the challenge of new mobility services (MaaS) Advancing initiatives with other transportation companies Implementing business alliances with a focus on rolling out seamless mobility services and starting verification testing  Conclusion of business alliance agreement with DAIICHI KOUTSU SAN

  23. Slide 23: 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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