Kyushu Railway Company · TSE:9142
Kyushu Railway — Q3 FY22.3 Earnings Presentation
27 slides from Kyushu Railway's earnings presentation, Feb 8, 2022
Slide 1: FY22.3 Financial Results Overview, Third Quarter
FY22.3 Financial Results Overview, Third Quarter February 8, 2022
Slide 2: Contents
Contents Ⅰ Financial Results for the First Nine-Months of FY22.3 3 Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for 8 FY22.3 Ⅲ Status of Progress with Strategies During the COVID-19 20 Pandemic 2
Slide 3: Financial Results for the First Nine-Months of FY22.3
Ⅰ Financial Results for the First Nine-Months of FY22.3 3
Slide 4: Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2021
Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2021 （\bil） Operating revenue 9 months ended 9 months ended YoY Despite the continued influence of the COVID-19 December 31,2020 December 31,2021 infection and the change of JR Kyushu Drug Eleven to an equity-method affil
Slide 5: Quarterly Trend of FY22.3
Quarterly Trend of FY22.3 In the third quarter results were firm in each business due to a recovery in mobility demand resulting from the lifting of the state of emergency, etc., at the end of September 2021. Consolidated Railway Business (non-consolidated) （¥bil） Railway Operating Operating Operati
Slide 6: Results for the First Nine Months of FY22.3 (by segment)
Results for the First Nine Months of FY22.3 (by segment) （\bil） 9 months ended 9 months ended December December YoY Major factors 31,2020 31,2021 Operating revenue 202.4 222.7 20.3 110.0% Transportation 70.2 81.4 11.2 115.9% Railway Business (non-consolidated) 66.3 77.1 10.8 116.3% Increase due to m
Slide 7: Results for the First Nine Months of FY22.3 (non-consolidated)
Results for the First Nine Months of FY22.3 (non-consolidated) (\bil) 9 months ended 9 months ended December, 31 December, 31 YoY Major Factors 2020 2021 Operating revenue 97.0 115.0 18.0 118.6% Railway transportation Increase due to moderate recovery in demand revenues 56.6 67.2 10.6 118.8% Shinkan
Slide 8: Full-Year Performance Forecasts and Dividend Forecasts for FY22.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY22.3 8
Slide 9: Performance Forecasts for FY22.3: Revision of revenue forecast
Performance Forecasts for FY22.3: Revision of revenue forecast Following the lifting of the state of emergency, etc., there was an underlying trend of recovery in the third quarter. However, with consideration for the re-spread of COVID-19 and the implementation of infection prevention and other pri
Slide 10: Major Factors for Operating Revenue and Operating Income
Performance Forecasts for FY22.3: Major Factors for Operating Revenue and Operating Income Demand is expected to remain sluggish for the time being. Nonetheless, with consideration for the sale of properties held by the Company to a private REIT (recorded in operating revenues), and for results in t
Slide 11: Consolidated Financial Forecast Highlights for FY22.3
Consolidated Financial Forecast Highlights for FY22.3 (\bil) FY22.3 Operating revenue Difference Results Previous Current Due to the re-spread of COVID-19, YoY results from previous FY21.3 forecast forecast forecast demand is expected to be sluggish. (November 2) (February 8) However, with considera
Slide 12: Consolidated Financial Forecasts for FY22.3 (by segment)
Consolidated Financial Forecasts for FY22.3 (by segment) (\bil) FY22.3 Difference Results Previous Current YoY Major factors from previous FY21.3 forecast forecast forecast (November 2) (February 8) Operating revenue 293.9 315.8 332.8 38.8 113.2% 17.0 Transportation 95.2 109.9 110.0 14.7 115.4% Incr
Slide 13: Non-consolidated Financial Forecasts for FY22.3
Non-consolidated Financial Forecasts for FY22.3 (\bil) Forecasts Difference FY22.3 Results from Previous Current YoY Major factors FY21.3 previous forecast forecast (November 2) (February 8) forecast Operating revenue 144.7 161.5 181.2 36.4 125.2% 19.7 Railway transportation revenues 76.3 91.0 91.0
Slide 14: FY22.3 dividend forecasts
FY22.3 dividend forecasts Shareholder return policy The Company views the return of profits to shareholders as one of its most important management tasks. Accordingly, the Company believes it is important to provide stable shareholder returns over the long term. (Policy up to FY22.3) ・Aim for a di
Slide 15: (Reference) Transportation Segment
(Reference) Transportation Segment 【Results】 【Forecasts】 （\bil） （\bil） FY22.3 9 months ended 9 months ended Difference Previous December December YoY Current forecast YoY results from previous 31,2020 31,2021 forecast (February 8) forecast (November 2) Operating revenue 70.2 81.4 11.2 115.9% 109.9 1
Slide 16: Railway business (transportation data)
Railway business (transportation data) Railway Transportation Revenues (\bil) 9 months ended 9 months ended YoY Major Factors December, 31 2020 December, 31 2021 Total 56.6 67.2 10.6 118.8% Commuter pass 19.9 21.4 1.4 107.3% Non-commuter pass 36.6 45.8 9.1 125.1% Cargo 0.0 0.0 0.0 - Shinkansen 16.7
Slide 17: (Reference) Real Estate and Hotels Segment (1)
(Reference) Real Estate and Hotels Segment (1) Real estate leasing business 【Results】 【Forecasts】 （\bil） （\bil） FY22.3 Difference 9 months ended 9 months ended Results Previous Current from December December YoY YoY results FY21.3 forecast forecast previous 31,2020 31,2021 forecast (November 2) (Feb
Slide 18: (Reference) Real Estate and Hotels Segment (2)
(Reference) Real Estate and Hotels Segment (2) Real Estate sales business 【Results】 （\bil） 【Forecasts】 （\bil） FY22.3 Difference 9 months ended 9 months ended Results Previous Current from December December YoY YoY results FY21.3 forecast forecast previous 31,2020 31,2021 forecast (November 2) (Febru
Slide 19: (Reference) Retail and Restaurant segment
(Reference) Retail and Restaurant segment 【Results】 【Forecasts】 （\bil） （\bil） FY22.3 Difference 9 months ended 9 months ended Results Previous Current from December December YoY YoY results FY21.3 forecast forecast previous 31,2020 31,2021 forecast (November 2) (February 8) Operating revenue 41.1 32
Slide 20: Status of Progress with Strategies During the COVID-19 Pandemic
Ⅲ Status of Progress with Strategies During the COVID-19 Pandemic 20
Slide 21: Railway Business Structural Reforms: Advancing BPR
Railway Business Structural Reforms: Advancing BPR* * Business Process Re-engineering In regard to the reduction of fixed costs by ¥14.0 billion during the period of the next Medium-Term Business Plan, we have basically completed the arrangement of the reduction measure details. Principal BPR initia
Slide 22: Railway Business Structural Reforms
Railway Business Structural Reforms Status of progress with FY22.3 cost reductions Planning for ¥20.0 billion in cost reductions, centered on urgent control measures Cumulative future fixed cost reductions Achieved a portion of BPR fixed-cost reductions ahead of schedule Amount of Continued consider
Slide 23: Strengthening Mobility Services Through MaaS
Strengthening Mobility Services Through MaaS To create mobility demand and build sustainable public transportation networks, we are strengthening cooperation with regional transportation companies, etc., and expanding/enhancing initiatives in each region in Kyushu. Strengthening cooperation among co
Slide 24: Structural Reform and Growth Investment in the Hotel Business
Structural Reform and Growth Investment in the Hotel Business Advancing rigorous cost-structure reforms, achieving a reduction in the break-even occupancy rate As a result, achieved break-even in the third quarter Continuing growth investment in the post COVID-19 period, while maintaining a focus on
Slide 25: Advancing Sustainable City-Building Through the Utilization of Private REIT
Advancing Sustainable City-Building Through the Utilization of Private REIT Planning to sell rental apartments/office buildings inside and outside Kyushu to private REIT in March 2022 (approximately ¥20.0 billion). Going forward, we will advance sales of properties while considering the market condi
Slide 26: Strengthening Business Portfolio
Strengthening Business Portfolio Necessary to build a business portfolio that does not depend excessively on the flow of people to stations B-to-B businesses recording solid results even during COVID-19 pandemic Sales to external customers (vs. FY20.3) Operating income trend 営業利益推移 建設 Construction （
Slide 27: 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
Kyushu Railway Company — Q3 FY22.3 Earnings Presentation on 6ix