Nagoya Railroad Co., Ltd. · TSE:9048
Nagoya Railroad — FY2022 Earnings Presentation
54 slides from Nagoya Railroad's earnings presentation, May 25, 2023
Slide 1: Fiscal Year Ended March 31, 2023 Financial Results Presentation for Investors
Fiscal Year Ended March 31, 2023 Financial Results Presentation for Investors Nagoya Railroad Co., Ltd. Securities Code: 9048 May 25, 2023 Copyright © Nagoya Railroad Co.,Ltd.
Slide 2: Progress Made on Medium-term Management Plan Growth Trajectory Going Forward
Progress Made on 01 Medium-term Management Plan Growth Trajectory Going Forward Copyright © Nagoya Railroad Co.,Ltd. 01
Slide 3: Progress Made on Medium-term Management Plan: Looking Back on FY2021 and FY2022
Progress Made on Medium-term Management Plan Looking Back on FY2021 and FY2022 Main Initiatives of Each Key Theme in FY2021 and FY2022 1 Restructuring the Traffic Business 3 Revitalizing the areas around our train lines as •Railroad business a unified group We revised timetables to meet demand and m
Slide 4: Progress under the Medium-term Management Plan and Quantitative Results
Progress under the Medium-term Management Plan and Quantitative Results Results Medium-term FY2021 FY2022 FY2023 Management Plan results results forecast Targets (FY2023) Billions Billions Billions Billions Operating income 2.9 yofen 22.7 yofen 26.5 yofen 35.0 yofen Reference indicators: Medium-term
Slide 5: Group Business Performance (FY2023 Full-year Forecast)
Group Business Performance (FY2023 Full-year Forecast) 【Summary of Performance Forecast】 FY2023 Full-year Forecast Percent Change(％) FY2023 FY2023 FY2022 Change forecast forecast Billions Billions Billions 36.4 of ROE Operating revenues 588.0 of y en 551.5 of y en (6.6) y en (net income/shareholders
Slide 6: Environment surrounding the Meitetsu Group’s main business area
Environment surrounding the Meitetsu Group’s main business area 【Forecasted change in population】 【Change in population with access within a 1.05 (2020 = 1) 120-minute window at each location (millions)】 ■■ Present 1 ⇒■■After the start of service (Tokyo – Nagoya) ⇒■■After the start of service (Tokyo
Slide 7: Projections of the Group’s growth going forward
Projections of the Group’s growth going forward 1. Promoting attractive regional and urban development: Promoting the Meitetsu Nagoya Station District Redevelopment Project 2. Enhancing the ratio of passengers taking public transport 3. Seizing inbound demand in the entire Chubu region 4. Promoting
Slide 8: Promoting the Meitetsu Nagoya Station District Redevelopment Project
Promoting attractive regional and urban development: Promoting the Meitetsu Nagoya Station District Redevelopment Project Based on our basic policy and the Company’s policy on redevelopment, we will promote initiatives aimed at realizing the comprehensive redevelopment and renovation of transport fa
Slide 9: Enhancing the ratio of passengers taking public transport (1)
Enhancing the ratio of passengers taking public transport (1) The ratio of passengers taking public transport in the three largest cities Source: Created by Meitetsu based on the results of each city’s most recent public transport survey Tokyo Chukyo Keihanshin Metropolitan Area Metropolitan Area Me
Slide 10: Enhancing the ratio of passengers taking public transport (2)
Enhancing the ratio of passengers taking public transport (2) 【Roadmap for the Regional MaaS Concept】 Vision: Realizing well-being and enhancing the ratio of passengers taking public transport in the Chubu area The Meitetsu Group has a full lineup of transport modes in the Chubu area, especially in
Slide 11: Seizing inbound demand in the entire Chubu region (1)
Seizing inbound demand in the entire Chubu region (1) 1. Current state of inbound tourism (Number of lodgers by nationality: December and January) Unit: Thousands of people ◆Local inbound tourism trends Visitors to Japan Source: Created by Meitetsu based on the from China, which had been a major sou
Slide 12: Seizing inbound demand across the Chubu region (2)
Seizing inbound demand across the Chubu region (2) Mountain Countryside tourism tourism Shirakawa-go Shinhotaka Komagane Magomejuku Photo provided by Nakatsugawa City Photo provided by the Shirakawa Village Hall, Gifu Prefecture Tourism assets in the Chubu region (themes) Inuyama Nagoya Meshi Handa
Slide 13: Promoting a strategy for a shift to high value added
Promoting a strategy for a shift to high value added Luxury residence condominiums Creating world-class mountain resorts Opening new retail businesses Lifestyle hotels that convey the attractiveness of the local area Copyright © Nagoya Railroad Co.,Ltd. 12
Slide 14: Results summary
02 Results summary Copyright © Nagoya Railroad Co.,Ltd. 13
Slide 15: Group Business Performance
Group Business Performance ■ Consolidated results ■ By segment (operating income) (billions of yen) FY2022 results Year-on-year Results Gap from forecast change Results Year-on-year change (as of November) Traffic 4.6 + 9.5 Billions Billions Billions of Operating revenues 551.5 of yen + 60.5 of yen
Slide 16: The Company’s Passengers and Transfer Revenues
The Company’s Passengers and Transfer Revenues ■ Railroad Passenger Results Percent change Percent change Year-on-year Year-on-year Passengers FY2022 percent change compared w ith Transfer revenues FY2022 percent change compared w ith FY2019 FY2019 thousand Billions of Non-commuters 106,570 passenge
Slide 17: Effects of Soaring Fuel Costs
Effects of Soaring Fuel Costs FY2022 full-year consolidated fuel costs: ¥24.1 billion (+¥4.3 billion year-on-year) Quarterly change in fuel costs Q1 Q2 Q3 Q4 Total Billions Billions Billions Billions Billions FY2022 results 5.7 of 5.8 of 6.2 of 6.2 of 24.1 of y en y en y en y en y en Billions Billio
Slide 18: Progress of the Meitetsu Group’s Medium-term Management Plan
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. 17
Slide 19: Initiatives for stable management in the Railroad business
Initiatives aimed at securing stable management over the medium to long term in the Railroad business To realize stable management over the long term, even amid lower revenues since the pandemic began, we are striving to make costs more appropriate and streamline our workforce in line with demand wh
Slide 20: Overview of Fare Revisions (Railroad)
Overview of Fare Revisions (Railroad) Nagoya Railroad ➢ As the new normal takes hold, including the rise of teleworking and a shift to other transport modes such as using personal cars to commute, we expect the situation to remain challenging going forward. We do not expect transport demand to retur
Slide 21: Stable management in the Bus business and Taxi business
Initiatives aimed at stable management over the medium to long term in the Bus business and Taxi business Strengthening our business structure through an intermediary holding company as well as implementing and considering various measures to adapt to environmental changes Bus business ➢ Strengtheni
Slide 22: Revitalizing communities and areas along train lines as a unified group (1)
Revitalizing communities and areas along train lines as a unified group (1) Aiming to revitalize regions through development leveraging local characteristics Promoting plans for commercial facilities at the Development under elevated sections of Hotei Station southern exit of Higashi Okazaki Station
Slide 23: Revitalizing communities and areas along train lines as a unified group (2)
Revitalizing communities and areas along train lines as a unified group (2) In connection with the historical TV drama What Would You Do, Ieyasu? create excitement through measures undertaken by various companies ➢ Nagoya Railroad Within Okazaki City •Sold What Would You Do, Okazaki Ieyasu tickets ➢
Slide 24: Revitalizing communities and areas along train lines as a unified group (3)
Revitalizing communities and areas along train lines as a unified group (3) Helping to create high value-added tourist destinations in the Matsumoto and Takayama areas In October 2022 Matsumoto / Takayama High Added Value Creation Promotion Council was established through a coalition with Meitetsu a
Slide 25: Strengthening growth businesses: Real Estate Business (1)
Strengthening businesses expected to grow moving forward: Real Estate Business (1) Accelerating open urban development by expanding the Real Estate Business Building systems for Diversifying the Real Estate Business Accelerating asset turnover-type businesses opened urban development Current medium-
Slide 26: Strengthening growth businesses: Real Estate Business (2)
Strengthening businesses expected to grow moving forward: Real Estate Business (2) Aiming to maximize value of related assets by strengthening the building management (BM) business base and reorganizing the property management (PM) business Reorganizing the Group’s structure Strengthening the BM bus
Slide 27: Strengthening growth businesses: Transport Business
Strengthening businesses expected to grow moving forward: Transport Business Working to strengthen earnings power by promoting collaboration with other companies and opening large-scale logistics bases Meitetsu Transportation: Enhancing collaboration with Nippon Express ➢ Starting discussions with N
Slide 28: Strengthening growth businesses: Aviation Services Business
Strengthening businesses expected to grow moving forward: Aviation Services Business Spurring new demand creation by expanding the Aviation Services Business and participating in PLATEAU Acquiring all shares and related assets of the helicopter business company of Nakanihon Air Service (March 31, 20
Slide 29: Initiatives to Expand Our Business Areas
Initiatives to Expand Our Business Areas Strengthening business development systems and further expanding new business areas Establishment of the Business Creation Department Registered the Meitetsu Drone Academy in Nagoya Railroad in the Registered Class Institution Newly established the department
Slide 30: Initiatives to Make Public Transit More Convenient: CentX
Initiatives to Make Public Transit More Convenient: CentX Working to expand collaboration with nationwide MaaS and micro MaaS and further enhance convenience by adding new functions Expanding operators who can be registered through the functions of My Station and My Bus Stop Expanding operators who
Slide 31: Initiatives to Make Public Transit More Convenient: Meitetsu Area Package (MAP)
Initiatives to Make Public Transit More Convenient: Meitetsu Area Package (MAP) Offering and constructing order-made sustainable public transit through the Meitetsu Group in response to the unique needs of each region. ➢ New transportation service using small vehicles ➢ On-Demand Transport Initiativ
Slide 32: ESG Initiatives
ESG Initiatives We identify material issues surrounding sustainability and promote initiatives aimed at realizing a sustainable society Material Issues Surrounding Sustainability: Approved at a Board of Directors Meeting in April 2022 Ｅ Contributing to Ｓ Improve Training personnel Ｇ Strengthening En
Slide 33: FY2022 Financial Results
04 FY2022 Financial Results Copyright © Nagoya Railroad Co.,Ltd. 32
Slide 34: FY2022 Financial Results
FY2022 Financial Results ＊Figures in parentheses are the year-on-year percent change. (Units: Millions of yen, %) Latest Forecast FY2022 FY2021 Change* Notes Notes (As of Nov.) Change 60,584 4,504 Operating revenues 551,504 490,919 547,000 (12.3) (0.8) 19,798 1,731 Operating income 22,731 2,932 21,0
Slide 35: 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 and the Traffic Business as well as contributions from the Real Estate Business. Although fuel expenses increased, profit improved on ev
Slide 36: Operating Results by Segment
Operating Results by Segment （Units : Millions of yen,%） Percent Previous Forecast Percent Operating revenues FY2022 FY2021 Change Change Change (Nov. 2021) Change Traffic 132,483 115,745 16,737 14.5 135,500 -3,016 -2.2 Transport 136,998 134,766 2,231 1.7 140,700 -3.701 -2.6 Real Estate 96,696 89,41
Slide 37: Traffic Business
Traffic Business （Units : Millions of yen,%） Percent FY2022 FY2021 Change Notes Change With the easing of restrictions that had been Operating put in place due to the COVID-19 pandemic, 132,483 115,745 16,737 14.5 the number of passengers in each business revenues recovered and pushed revenues highe
Slide 38: Transport Business
Transport Business （Units : Millions of yen,%） Percent FY2022 FY2021 Change Notes Change Revenues increased due to a recovery in Operating 136,998 134,766 2,231 1.7 travel demand in the Maritime Transport revenues business. Despite the negative effects on income of Operating higher personnel and fue
Slide 39: Real Estate Business
Real Estate Business （Units : Millions of yen,%） Percent FY2022 FY2021 Change Notes Change Revenues increased due in part to recording Operating dividend income from a real estate fund in 96,696 89,416 7,279 8.1 revenues addition to an increase in the number of condominiums for purchase delivered. O
Slide 40: Leisure and Services Business
Leisure and Services Business （Units : Millions of yen,%） Percent FY2022 FY2021 Change Notes Change Revenues increased due in part to effects of a Operating national travel subsidy campaign in addition to a 81,049 47,572 33,476 70.4 recovery in tourism demand follow ing the easing of revenues pandem
Slide 41: Distribution Business
Distribution Business （Units : Millions of yen,%） Percent FY2022 FY2021 Change Notes Change Revenues increased due in part to improved Operating performance among department stores and 66,263 64,652 1,611 2.5 revenues the inclusion of companies in the scope of consolidation in the retail business. A
Slide 42: Aviation Services Business
Aviation Services Business （Units : Millions of yen,%） Percent FY2022 FY2021 Change Notes Change Revenues increased due to a recovery in Operating demand in the in-flight catering business 25,578 23,364 2,214 9.5 revenues and higher orders in the aviation maintenance business. Despite higher revenue
Slide 43: Others
Others （Units : Millions of yen,%） Percent FY2022 FY2021 Change Notes Change Revenues increased due to higher orders Operating 50,070 46,560 3,509 7.5 related to facility construction and revenues systems. Operating 2,619 1,971 648 32.9 Income increased due to higher revenues. income ◆Breakdown of O
Slide 44: Non-Operating Income and Extraordinary Income
Non-Operating Income and Extraordinary Income (Units: Millions of yen) FY2022 FY2021 Change Notes Non-operating income 7,194 13,648 -6,454 Interest income 26 22 3 Dividend income 1,295 1,171 123 Equity in net earnings of affiliates 2,637 3,257 -619 Reversal of provision for loss on liquidation 67 19
Slide 45: Consolidated Balance Sheets
Consolidated Balance Sheets (Units: Millions of yen) FY2022 FY2021 Change Notes Current assets 226,902 211,596 15,305 Increase in land and buildings for sale in lots Non-current assets 1,004,476 975,301 29,175 Capital investment +62,351 Property and equipment 854,026 825,163 28,862 Depreciation and
Slide 46: EBITDA and Capital Investment
EBITDA and Capital Investment (Units: Millions of yen) FY2022 FY2021 Change FY2022 FY2021 Change Operating income 4,614 -4,960 9,574 Operating income -2,475 -2,054 -420 Depreciation and Depreciation and amortization 17,702 18,024 -322 amortization 1,130 1,084 46 Traffic ＥＢＩＴＤＡ(①) 22,316 13,063 9,252
Slide 47: FY2023 Operating Results Forecast
05 FY2023 Operating Results Forecast Copyright © Nagoya Railroad Co.,Ltd. 46
Slide 48: 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 49: FY2023 Consolidated Operating Results Forecast
FY2023 Consolidated Operating Results Forecast (Units: Millions of yen, %) FY2023 FY2022 Percent Current forecast Change results Change Operating revenues 588,000 551,504 36,496 6.6 Operating income 26,500 22,731 3,769 16.6 Non-operating revenues 4,800 7,194 -2,394 Non-operating expenses 3,800 3,562
Slide 50: Operating Results Forecast Highlights
Operating Results Forecast Highlights Year-on-year: Higher revenues ・ higher profit (With a recovery in demand centered on Traffic and Leisure and Services, overall sales will increase. We expect income to rise due to higher revenues despite forecasting an increase in personnel, fuel, and other cost
Slide 51: FY2023 Operating Results Forecast by Segment
FY2023 Operating Results Forecast by Segment (Units: Millions of yen, %) FY2023 FY2022 Percent Operating revenues Change Current forecast results Change Traffic 144,000 132,483 11,517 8.7 Transport 142,000 136,998 5,002 3.7 Real Estate 103,900 96,696 7,204 7.4 Leisure and Services 89,700 81,049 8,65
Slide 52: FY2023 Non-consolidated Operating Results Forecast
FY2023 Non-consolidated Operating Results Forecast (Units: Millions of yen, %) FY2023 FY2022 Percent Change Current forecast results Change Operating revenues 95,400 90,332 5,067 5.6 Operating income 7,300 6,841 458 6.7 Ordinary income 8,900 8,475 424 5.0 Net income 8,000 7,270 729 10.0 Operating re
Slide 53: FY2023 EBITDA and Capital Investment Forecast
FY2023 EBITDA and Capital Investment Forecast (Units: Millions of yen) FY2023 FY2022 FY2023 FY2022 Current forecast Change Current forecast Change results results Operating income 8,000 4,614 3,386 Operating income -1,600 -2,475 875 Depreciation and Depreciation and amortization 18,100 17,702 398 am
Slide 54: Notice regarding 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. 53