Kyushu Railway Company · TSE:9142
Kyushu Railway — Q1 FY24.3 Earnings Presentation
29 slides from Kyushu Railway's earnings presentation, Aug 8, 2023
Slide 1: FY24.3 Financial Results Overview, First Quarter
FY24.3 Financial Results Overview, First Quarter August 8, 2023
Slide 2: Contents
Contents Ⅰ Financial Results for the First Three-Months of FY24.3 3 Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for 7 FY24.3 Ⅲ Status of Segments 12 Ⅳ Progress of the Medium-Term Business Plan 22 2
Slide 3: Financial Results for the First Three-Months of FY24.3
Ⅰ Financial Results for the First Three-Months of FY24.3 3
Slide 4: Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2023
Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2023 （¥bil） 3 months 3 months ended June, ended June, YoY 30 2022 30 2023 Operating revenue・income Operating revenue 90.4 97.9 7.4 108.2% The sale of properties decreased, but revenues and profit increased due to such factor
Slide 5: Consolidated Results for the First Three Months of FY24.3 (by Segment)
Consolidated Results for the First Three Months of FY24.3 (by Segment) （¥bil） 3 months ended 3 months ended YoY Major factors June, 30 2022 June, 30 2023 Operating revenue 90.4 97.9 7.4 108.2% Transportation 31.4 38.5 7.1 122.7% Railway Business (non-consolidated) 31.1 37.9 6.7 121.8% Increase due t
Slide 6: Non-Consolidated Results for the First Three Months of FY24.3
Non-Consolidated Results for the First Three Months of FY24.3 (¥bil) 3 months ended 3 months ended YoY Major Factors June, 30 2022 June, 30 2023 Operating revenue 53.4 56.6 3.1 106.0% Railway transportation 27.5 34.2 6.6 124.0% Moderate recovery in demand revenues Shinkansen 9.0 13.1 4.0 145.3% Conv
Slide 7: Full-Year Performance Forecasts and Dividend Forecasts for FY24.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY24.3 7
Slide 8: Consolidated Financial Forecast Highlights for FY24.3
Consolidated Financial Forecast Highlights for FY24.3 （\bil） Operating revenue Results Forecasts Even though we expect a decrease in the YoY FY23.3 FY24.3 sale of properties, we anticipate a rise in revenues owing to such factors as the Operating revenue 383.2 417.0 33.7 108.8% gradual recovery of d
Slide 9: Consolidated Financial Forecasts for FY24.3 (by segment)
Consolidated Financial Forecasts for FY24.3 (by segment) (¥bil) Results Forecasts YoY Major factors FY23.3 FY24.3 Operating revenue 383.2 417.0 33.7 108.8% Transportation 138.3 160.7 22.3 116.2% Increase due to moderate recovery in demand Railway Business (non-consolidated) 136.5 156.9 20.3 114.9% R
Slide 10: Non-consolidated Financial Forecasts for FY24.3
Non-consolidated Financial Forecasts for FY24.3 (¥bil) Results Forecasts YoY Major factors FY23.3 FY24.3 Operating revenue 211.6 228.6 16.9 108.0% Railway transportation revenues 121.4 142.8 21.3 117.6% Increase due to moderate recovery in demand Shinkansen 44.0 53.9 9.8 122.4% Conventional Lines 77
Slide 11: FY24.3 Dividend Forecasts
FY24.3 Dividend Forecasts Shareholder return policy JR Kyushu places importance on the stable provision of return to shareholders over the long term. Over the period to FY25.3, we will aim for a consolidated dividend payout ratio of 35%, with a minimum dividend per share of ¥93.0. We will flexibly
Slide 12: Status of Segments
Il Status of Segments 12
Slide 13: Status of and Outlook for Key Businesses (Railway)
Status of and Outlook for Key Businesses (Railway) Although revenue was slightly behind our expectations in Q1, we believe we will be able to recover the forecast levels for the full year. Expenses also trended higher in than the previous year, but remained within our scope of expectations. Reve
Slide 14: Status of and Outlook for Key Businesses (Real Estate and Hotels)
Status of and Outlook for Key Businesses(Real Estate and Hotels) In Q1, the pace of recovery exceeded expectations, especially at station buildings and hotels, reflecting rising consumer demand and mobility demand. We anticipate opening expenses of URESHINO YADOYA (scheduled to open on October 1
Slide 15: Transportation Segment
Transportation Segment In Q1, railway transportation revenues continued the previous year’s trend toward recovery, but the level was slightly below our expectations. Expenses in the railway business were up year on year, but remained within our scope of expectations. 【Results】 【Forecasts】 （¥bil）
Slide 16: Railway business (transportation data)
Railway business (transportation data) Railway Transportation Revenues (¥bil) 3 months ended 3 months ended YoY Major Factors June, 30 2022 June, 30 2023 Total 27.5 34.2 6.6 124.0% Commuter pass 7.4 7.7 0.2 103.8% Non-commuter pass 20.1 26.4 6.3 131.5% Cargo 0.0 0.0 0.0 117.6% Shinkansen 9.0 13.1 4.
Slide 17: Real Estate and Hotels Segment: Real estate leasing business
Real Estate and Hotels Segment: Real estate leasing business In Q1, station building tenant sales recovered at a faster pace than we had anticipated, centered on Hakata City, owing to an rebound in foot traffic. In office buildings and rental apartments, performance remained robust, with no majo
Slide 18: Real Estate and Hotels Segment: Real Estate Sales Business
Real Estate and Hotels Segment: Real Estate Sales Business In Q1, condominium sales were up year on year. In the period under review, we sold a rental apartment building, whereas we sold an office building in the same period of the previous fiscal year. As a result, the sale of properties was do
Slide 19: Real Estate and Hotels Segment: Hotel Business
Real Estate and Hotels Segment: Hotel Business In Q1, performance was much higher than anticipated due to a recovery in domestic travelers and growth in inbound demand. The percentage of inbound travelers rose from 20% before COVID-19 to 40%. ADR reached the ¥18,000 level, driven by hotels in th
Slide 20: Retail and Restaurant segment
Retail and Restaurant segment In Q1, sales at existing stores in restaurants near stations and in suburban areas benefited from a resurgence in footfall, and performance exceeded expectations. 【Results】 【Forecasts】 （¥bil） （¥bil） 3 months 3 months FY23.3 FY24.3 ended June, ended June, YoY YoY Resul
Slide 21: Construction Segment, Business Services Segment
Construction Segment, Business Services Segment Construction Segment 【Results】 【Forecasts】 （¥bil） （¥bil） 3 months 3 months FY23.3 FY24.3 ended June, ended June, YoY YoY Results Forecasts 30 2022 30 2023 Operating revenue 16.3 15.3 (0.9) 93.9% 88.3 92.5 4.1 104.7% Operating income (0.4) (0.5) (0.1) -
Slide 22: Progress of the Medium-Term Business Plan
Ⅳ Progress of the Medium-Term Business Plan 22
Slide 23: JR Kyushu Group Medium-Term Business Plan 2022-2024
JR Kyushu Group Medium-Term Business Plan 2022-2024 Three key strategies of the medium-term business plan 2030 Long-Term Vision Robustly promoting three key strategies during the stage for returning the We will contribute to the sustainable development of Company to a growth track Kyushu through cit
Slide 24: Key strategy 1: Railway Business Through The Future Railway Project
Key strategy❶ Completing Business Structural Reforms: Railway Business Through The Future Railway Project Taking a railway business streamlined through BPR as our starting point, we will work to advance mobility and strengthen our management base through the “Future Railway Project” to create the
Slide 25: Key strategy 1: Retail and Restaurant Business
Key strategy❶ Completing Business Structural Reforms: Retail and Restaurant Business We will improve management through structural reforms and the support of outside specialists. By promoting the reinforcement of existing businesses and brands, we aim to further enhance competitiveness and improve
Slide 26: Key strategy 2: Nagasaki Station area development
Key strategy❷ Creating a model for building cities that promote well-being: Nagasaki Station area development Implementing a multi-faceted development project as the land gateway to Nagasaki, an international tourism city, including hotels, commercial facilities, offices, and parking lots, to crea
Slide 27: Key strategy 2: City-Building in the Kyushu Area
Key strategy❷ Creating a model for building cities that promote well-being: City-Building in the Kyushu Area In addition to the Fukuoka and western Kyushu areas, we are pursuing new developments and acquiring properties in the northern Kyushu and Kagoshima areas. We will contribute to expand the
Slide 28: Key strategy 2: The BRT on the Hitahikosan Line
Key strategy❷ Creating a model for building cities that promote well-being: The BRT on the Hitahikosan Line On August 28, BRT service is scheduled to commence on the Soeda–Yoake/Hita segment, which a disaster made impassible in July 2017. The number of stations is set to triple from pre-disaster
Slide 29: Forward-Looking Statements
Forward-Looking Statements These materials contain forward-looking statements concerning business forecasts, targets, etc. of the JR Kyushu Group. These statements are judgments made by the Company based on information, projections, and assumptions available at the time of the materials’ creation. A
Kyushu Railway Company — Q1 FY24.3 Earnings Presentation on 6ix