Keihan Holdings Co.,Ltd. · TSE:9045
Keihan Holdings Co.,Ltd — H1 FY2018 Earnings Presentation
36 slides from Keihan Holdings Co.,Ltd's earnings presentation, Nov 9, 2017
Slide 1: First Half of FY2018 Financial Results Presentation
First Half of FY2018 (Ended September 30, 2017) Financial Results Presentation November 9, 2017 Keihan Holdings Co., Ltd. (Tokyo Stock Exchange 1st / Securities Code: 9045 http:// www. keihan-holdings.co.jp/)
Slide 2: Table of Contents
Table of Contents Overview of the First Half of FY2018 Financial Results … 1 FY2018 Forecasts …11 Progress Status of Keihan Group’s Medium-Term …16 Management Plan “Bravely Pursuing Creation” ◆Notes on forecasts◆ Descriptions of business forecasts and future prospects are based on current informatio
Slide 3: Overview of the First Half of FY2018 Financial Results
Overview of the First Half of FY2018 Financial Results
Slide 4: Consolidated Statements of Income
Consolidated Statements of Income Overview of the First Both revenue and profits increased thanks to the strong passenger revenue of Keihan Electric Half of FY2018 Railway Co., Ltd. in the transportation business and contributions from the consolidation of Zero (year-on-year comparison) Corporation
Slide 5: Segment Information
Segment Information Both revenue and profits fell for the transportation business, while revenue grew and profits shrank for the real estate business, retail business, leisure and service business, and others. (Millions of yen) 1H FY2017 1H FY2018 Change Change (%) Results Results Total operating re
Slide 6: Segment Information (Breakdown)
Segment Information (Breakdown) [Consolidated companies] 40 companies [Equity-method affiliates] 2 companies Transportation Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd. and 12 other companies Keihan Holdings Co., Ltd., Keihan Dentetsu Real Estate Co.,
Slide 7: Segment Information (Transportation)
Segment Information (Transportation) Railway business Keihan Electric Railway’s transportation revenue increased due to the commencement of the Premium Car service in August as well as an increase in the number of commuter pass passengers and the number of tourists to the Kyoto area. However, overal
Slide 8: Segment Information (Real Estate)
Segment Information (Real Estate) Real estate sales business Revenue grew overall thanks to the sale of the apartment units Fine City Oji-Kamiya River & Forest, combined with the contribution from Zero Corporation, which became a consolidated subsidiary. However, profits shrank due to the reaction t
Slide 9: Segment Information (Retail distribution)
Segment Information (Retail distribution) Department stores Both revenue and profits fell due to the weak results of fresh foods, dairy foods, and women’s apparel and sundries, in addition to the reaction to the large orders placed in sales to outside customers in the previous year. Stores Revenue g
Slide 10: Segment Information (Leisure & Service)
Segment Information (Leisure & Service) Hotel business Despite the opening of Hotel Keihan Yodoyabashi in July, both revenue and profits shrank due to the significant impact of the fall in revenue following the partial renovation work of Kyoto Century Hotel. (Millions of yen) Operating revenue Opera
Slide 11: Consolidated Balance Sheets
Consolidated Balance Sheets (Millions of yen) FY2017 1H FY2018 Change Main factors of changes Results Results Land and buildings for sale +11,098 Current assets 157,655 171,819 14,164 Expenses on uncompleted construction +6,217 Notes and accounts receivable -3,664 Property, plant and equipment -4,41
Slide 12: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) 1H FY2017 1H FY2018 Change Main factors of changes Results Results Increase in expenses due to an increase in inventories -2,846 Cash flows from operating activities 10,717 6,607 -4,110 Decrease in income due to the collection of accounts recei
Slide 13: FY2018 Forecasts
F KEIHAN FY2018 Forecasts
Slide 14: Consolidated Statement of Income (Performance Forecast)
Consolidated Statement of Income (Performance Forecast) The retail business is projected to show weak results, including poor results anticipated for department stores. On Overview of full-year the other hand, in the real estate business, a larger number of apartment units than initially projected i
Slide 15: Segment Information (Performance Forecasts)
Segment Information (Performance Forecasts) ■ Operating Revenue/Operating Income (Millions of yen) FY2018 full- year forecasts New FY2018 FY2017 released in full-year Change Main factors of changes Change forecasts Results April Total operating revenue 300,000 315,000 15,000 302,917 12,082 Total ope
Slide 16: Segment Information (Performance Forecasts)
Segment Information (Performance Forecasts) ■ Capital Expenditure (Millions of yen) FY2018 full-year New FY2018 FY2017 forecasts released full-year Change Change in April forecasts Results Transportation 16,800 18,300 1,500 17,690 609 Real estate 18,400 21,100 2,700 16,553 4,546 Retail distribution
Slide 17: Operating Results for Transportation (Performance Forecasts)
Operating Results for Transportation (Performance Forecasts) << Forecast of operating results for transportation (Keihan Electric Railway) >> ■ Number of passengers FY2018 full- New FY2018 year forecasts FY2017 full-year Change Change (%) Change Change (%) released in Results forecasts April (Thousa
Slide 18: Progress Status of Keihan Group's Medium-Term Management Plan
Progress Status of Keihan Group’s Medium-Term Management Plan “Bravely Pursuing Creation”
Slide 19: Keihan Group's Medium-Term Management Plan
Keihan Group’s Medium-Term Management Plan (FY2016 – FY2018) Basic Policy Keihan Group’s Determination to Take on Challenges at the “Second Foundation Stage” – Bravely Pursuing Creation – Strengthen Main Strategies the Management Foundation Achieve new growth through the creation of Continuous measu
Slide 20: Medium-Term Management Plan (Main Actions Taken)
Overview of Keihan Group’s Medium-Term Management Plan (Main Actions Taken) Qualitative goals Main actions taken Achieve new growth through New hotel project in front of Kyoto Station Development of Kyoto Tower as a global base for tourism the creation of • Renovation of Kyoto Century Hotel • Openin
Slide 21: Actual Results of Quantitative Target Items
Overview of Keihan Group’s Medium-Term Management Plan (Actual Results of Quantitative Target Items) Consolidated operating income (In 100 million yen) 400 315 323 294 300 300 200 100 Bravely Pursuing Creation Bravely Pursuing Creation 0 FY2015 2014年度 FY2016 2015年度 FY2017 2016年度 FY2018 2017年度 (Actua
Slide 22: Introduction of New Railway Services: Premium Cars and Liners
Introduction of New Railway Services: Premium Cars and Liners Premium Cars: special carriages with reserved seats Convert the sixth car of each of ten eight-car 8000 Keihan limited express trains into a Premium Car. With guaranteed seats, which is great for commuting and sightseeing, the carriage pr
Slide 23: Growth in Passenger Revenue
Growth in Passenger Revenue Keihan Electric Railway Keihan Electric Railway (In JPY million) Transport revenue 52,000 Main factors causing fluctuations in passenger revenue 51,000 • Increase in the number of tourists to the Kyoto area (Increase in the number of tourists visiting 50,000 the Kyoto are
Slide 24: Redevelopment of Hirakatashi Station and Its Surrounding Areas
Redevelopment of Hirakatashi Station and Its Surrounding Areas Toward the redevelopment of surrounding areas Concentrate urban functions on a site adjacent to the station To redesign and revitalize the areas along the Keihan Railway lines with a focus on improving the “value of living” in the areas
Slide 25: Redevelopment of Hirakatashi Station and Its Surrounding Areas
Redevelopment of Hirakatashi Station and Its Surrounding Areas Make Hirakatashi Station a “station that people always want to use and want to visit once” As part of the highest priority project of the core strategy, “revitalization of the areas along the Keihan Railway lines,” we will revitalize Hir
Slide 26: Acquisition of Zero Corporation as a Consolidated Subsidiary
Acquisition of Zero Corporation as a Consolidated Subsidiary Executed an M&A to strengthen the real estate sales business In July 2017, we purchased all the shares of Zero Corporation Co., Ltd., which was engaged in the built-for- Profile of Zero Corporation Co., Ltd. sale housing and order-made bui
Slide 27: Development of Area in Front of Kyoto Station as a Global Tourism Base
Development of Area in Front of Kyoto Station as a Global Tourism Base New hotel project in front of Kyoto Station As part of the highest priority project of the core strategy, “creation of sightseeing opportunities,” we will build a hotel in the former site of Kyoto Dai-ni Tower Hotel, which closed
Slide 28: Expansion of Accommodation Facilities in Kyoto
Expansion of Accommodation Facilities in Kyoto Opening of “Hotel Keihan Kyoto Hachijoguchi Shichijo Dori Shichijo Station (provisional name)” Kyoto Tower Hotel Annex Higashinotoin Dori Kyoto Tower Shiokoji Dori Targeting families and groups visiting Kyoto for sightseeing, the hotel will be Kyoto Cen
Slide 29: Create contents under the theme BIOSTYLE
Create contents to enhance the “value of living” ◆ Create contents under the theme “BIOSTYLE” Start the construction of a commercial complex in Shijo-Kawaramachi, Kyoto • Address: Inaricho (Kawaramachi-dori Shijo Sagaru), Shimogyo-ku, Kyoto City • Scheduled to open in: Spring 2019 • Building size: N
Slide 30: Activities in Each Business: Transportation Business
Activities in Each Business: Transportation Business To offer a pleasant transport experience to many inbound tourists and others Upgrade of Fushimi-inari Station Installation of automatic foreign The station is a gateway to the Fushimi Inari Taisha Shrine, currency exchange machines which attracts
Slide 31: Activities in Each Business: Real Estate Business
Activities in Each Business: Real Estate Business Main condominiums to be sold in the term ended March 31, 2018 and thereafter Scheduled to be Scheduled to be Property name, location, number of units for sale posted Property name, location, number of units for sale posted in in Fine City SENRI TSUKU
Slide 32: Activities in Each Business: Real Estate Business
Activities in Each Business: Real Estate Business New development project in the real estate sales business As part of our efforts to expand non-apartment business, we have taken up a new development project to renovate and sell a resort hotel in the real estate sales business. • Property name: Hote
Slide 33: Activities in Each Business: Retail Business
Activities in Each Business: Retail Business Opening of KYOTO TOWER SANDO Renewed the floor design to make it more suitable for a global base that welcomes domestic and overseas tourists as well as local customers. The shops range from classic souvenir shops to well-established local stores waiting
Slide 34: Activities in Each Business: Hotel Business
Activities in Each Business: Hotel Business Opening of Hotel Keihan Yodoyabashi Accommodation-only hotel in an excellent location with good • Opening date: July 28, 2017 access to major spots in Osaka City and direct train routes to • Address: 2-4-6 Kitahama, Chuo-ku, Osaka City tourist spots such a
Slide 35: Activities in Each Business: Leisure Business
Activities in Each Business: Leisure Business Activities to create sightseeing opportunities along “waterways” Participation in the Lake Biwa Canal Restoration Project We began participating in the restoration project in 2014, and continue to take part in the “Council for Creating Attractions in Are
Slide 36: Progress Status of Major Strategic Investment Projects
Progress Status of Major Strategic Investment Projects Medium -Term Management Plan “Bravely Pursuing Creation” FY2016 FY2017 FY2018 FY2019 ● Construction starts ● (2017) Scheduled opening of THE THOUSAND KYOTO New hotel in the area in front of Kyoto Station Creation of sightseeing (January 2019) Ma