Kyushu Railway Company · TSE:9142
Kyushu Railway — H1 FY25.3 Earnings Presentation
41 slides from Kyushu Railway's earnings presentation, Nov 7, 2024
Slide 1: FY25.3 Semi-Annual Investors Meeting
FY25.3 Semi-Annual Investors Meeting November 7, 2024 KYUSHU RAILWAY COMPANY
Slide 2: Contents
Contents Ⅰ Financial Results for the First Six Months of FY25.3 4 Ⅱ Full-Year Performance Forecasts and Dividend Forecasts 9 for FY25.3 Ⅲ Status of Segments 14 Ⅳ Progress on the Medium-Term Business Plan 23 Ⅴ Regarding Serious Safety Issues at JR Kyushu Jet Ferry Inc. 30 Appendix 32 2
Slide 3: Overview
Overview Financial ◼ Owing to demand recovery in each segment, consolidated operating revenues, operating results for the income, and ordinary income all increased year on year. first six months of ◼ Net income attributable to owners of the parent decreased year on year, owing to a FY25.3 decrease i
Slide 4: Financial Results for the First Six Months of FY25.3
I Financial Results for the First Six Months of FY25.3 4
Slide 5: Consolidated Financial Highlights for the Six-Month Period Ended September 30, 2024
Consolidated Financial Highlights for the six-Month Period Ended September 30, 2024 （\bil） Key points 6 months ended 6 months ended September, 30 September, 30 YoY ⚫ The sale of properties decreased, but railway 2023 2024 transportation revenues rebounded, Operating revenue 190.7 208.4 17.6 109.3% p
Slide 6: Consolidated Balance Sheet and Cash Flow Statement
Consolidated Balance Sheet and Cash Flow Statement （\bil） 6 months Results ended YoY Major factors FY24.3 September, 30 2024 Assets 1,089.1 1,077.2 (11.9) Current assets 221.5 194.2 (27.3) Decrease in accounts receivable-trade Non-current assets 867.6 883.0 15.3 Increase in property, plant and equip
Slide 7: Consolidated Results for the First Six Months of FY25.3 (by Segment)
Consolidated Results for the First Six Months of FY25.3 (by Segment) （\bil） 6 months ended 6 months ended September, 30 September, 30 YoY Major factors 2023 2024 Operating revenue 190.7 208.4 17.6 109.3% Transportation 79.3 82.1 2.8 103.6% Railway Business (non-consolidated) 77.9 80.9 3.0 103.9% Inc
Slide 8: Non-Consolidated Results for the First Six Months of FY25.3
Non-Consolidated Results for the First Six Months of FY25.3 (\bil) 6 months ended 6 months ended September 30, September 30, YoY Major Factors 2023 2024 Operating revenue 106.2 110.0 3.7 103.5% Railway transportation 70.4 73.3 2.9 104.1% Increase due to moderate recovery in demand revenues Shinkanse
Slide 9: Full-Year Performance Forecasts and Dividend Forecasts for FY25.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY25.3 9
Slide 10: Consolidated Financial Forecast Highlights for FY25.3
Consolidated Financial Forecast Highlights for FY25.3 Key points （\bil） ⚫ Although personnel expenses will rise due Medium-Term to improved employee compensation, we Results Forecasts YoY Business Plan Vs. targets expect higher railway transportation FY24.3 FY25.3 targets revenue and a decline in ma
Slide 11: Consolidated Financial Forecasts for FY25.3 (by Segment)
Consolidated Financial Forecasts for FY25.3 (by Segment) (\bil) Medium-Term Results Forecasts YoY Major factors Business Plan Vs. targets FY24.3 FY25.3 targets Operating revenue 420.4 441.1 20.6 104.9% 440.0 1.1 100.3% Transportation 163.7 166.6 2.8 101.7% Increase due to moderate recovery in demand
Slide 12: Non-consolidated Financial Forecasts for FY25.3
Non-consolidated Financial Forecasts for FY25.3 （\bil） Results Forecasts YoY Major factors FY24.3 FY25.3 Operating revenue 234.3 234.1 (0.2) 99.9% Railway transportation 145.0 147.7 2.6 101.8% Increase due to moderate recovery in demand revenues Shinkansen 57.5 58.7 1.1 102.0% Conventional Lines 87.
Slide 13: FY25.3 Dividend Forecasts
FY25.3 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 14: Status of Segments
Il Status of Segments 14
Slide 15: Transportation Segment
Transportation Segment ⚫ In Q2 FY25.3, railway transportation revenues were slightly behind expectations due to natural disasters such as the earthquake and typhoon that occurred in August, but are expected to be able to recover in the full year ⚫ Expenses of the railway business are almost as expec
Slide 16: Status of Inbound Measures in the Railway Business
Status of Inbound Measures in the Railway Business ⚫ In Q2 FY25.3, inbound revenue remained essentially at 24.3 1H levels, owing to the impact of natural disasters Inbound Revenue (approximate) 25.0 Demand for JR-KYUSHU RAIL PASS JR-KYUSHU RAIL PASS Others Vs. FY19.3 160% 1H FY19.3 1H FY24.3 1H FY25
Slide 17: Railway Business (Transportation Data)
Railway Business (Transportation Data) Railway transportation revenues (\bil) 6 months ended 6 months ended September 30, September 30, YoY Major Factors 2023 2024 Total 70.4 73.3 2.9 104.1% Commuter pass 15.4 15.8 0.3 102.5% Non-commuter pass 54.9 57.4 2.5 104.6% Cargo 0.0 0.0 0.0 121.8% Shinkansen
Slide 18: Real Estate and Hotels Segment: Real Estate Leasing Business
Real Estate and Hotels Segment: Real Estate Leasing Business ⚫ In Q2 FY25.3, station building tenant sales outpaced expectations, driven by performance at JR Hakata City. 【Results】 （\bil） 【Forecasts】 （\bil） 6 months ended 6 months ended FY24.3 FY25.3 September, 30 September, 30 YoY YoY Results Forec
Slide 19: Real Estate and Hotels Segment: Real Estate Sales Business
Real Estate and Hotels Segment: Real Estate Sales Business ⚫ In Q2 FY25.3, condominium sales were increased year on year and in line with forecast. ⚫ Property sales were decreased in revenue due to reflection to the sales in Q1 FY24.3. 【Results】 【Forecasts】 （\bil） （\bil） 6 months ended 6 months ende
Slide 20: Real Estate and Hotels Segment: Hotel Business
Real Estate and Hotels Segment: Hotel Business ⚫ As in the previous fiscal year, in Q2 FY25.3, hotels with a high ratio of inbound guests continued to be a driving force, with ADR at Q1 levels and occupancy rates essentially in line with the forecast. 【Results】 （\bil） 【Forecasts】 （\bil） 6 months end
Slide 21: Retail and Restaurant Segment
Retail and Restaurant Segment ⚫ In Q2 FY25.3, performance at existing retail stores and restaurants remained favorable. 【Results】 【Forecasts】 （\bil） （\bil） 6 months ended 6 months ended FY24.3 FY25.3 September, 30 September, 30 YoY YoY Results Forecasts 2023 2024 Operating revenue 29.9 32.4 2.4 108.
Slide 22: Construction Segment, Business Services Segment
Construction Segment, Business Services Segment Construction Segment 【Results】 【Forecasts】 （\bil） （\bil） 6 months ended 6 months ended FY24.3 FY25.3 September, 30 September, 30 YoY YoY Results Forecasts 2023 2024 Operating revenue 33.9 36.5 2.6 107.8% 90.0 95.0 4.9 105.4% Operating income (0.3) 0.2
Slide 23: Progress on the Medium-Term Business Plan
Ⅳ Progress on the Medium-Term Business Plan 23
Slide 24: 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 25: Completing Business Structural Reforms: Future Railway Project
Key Strategy ❶ Completing Business Structural Reforms: Railway Business through the Future Railway Project ⚫ We launched a ticketless service using QR codes, which provided effective in alleviating station congestion and reducing equipment costs. ⚫ The multifunctional inspection vehicle (BIG EYE) we
Slide 26: Maximizing the Effect of Opening Nishi-Kyushu Shinkansen
Key Strategy ❷ Creating a Model for Building Cities That Promote Well-Being | Maximizing the Effect of Opening Nishi-Kyushu Shinkansen ⚫ Commuter numbers were increasing in Q2 FY25.3. ⚫ We are promoting measures to encourage use of the Nishi-Kyushu Shinkansen and working to further continue and expa
Slide 27: Disclosing profitability by train line
Key strategy❷ Creating a Model for Building Cities That Promote Well-Being: Disclosing profitability by train line ⚫ Disclosing profitability for train lines with an average of less than 2,000 passengers per day. Of these, in regard to those lines on which the average number of passengers in FY2019.
Slide 28: BRT on the Hitahikosan Line
Creating a Model for Building Cities That Promote Well-Being: Key Strategy ❷ BRT on the Hitahikosan Line ⚫ The Hitahikosan Line BRT Hikoboshi Line, which celebrated its first anniversary in August, 2024, has enjoyed steady usage. ⚫ We are working to improve convenience and promote use of the line th
Slide 29: ESG Initiatives
ESG Initiatives ⚫ To support the realization of a de-carbonized society, we monitor and disclose the Group's overall supply chain emissions, and promote emission reduction initiatives that take into account economic efficiency in the Group's business areas. ⚫ With regard to the development of human
Slide 30: Regarding Serious Safety Issues at JR Kyushu Jet Ferry Inc.
Ⅴ Regarding Serious Safety Issues at JR Kyushu Jet Ferry Inc. 30
Slide 31: Regarding Serious Safety Issues at JR Kyushu Jet Ferry Inc.
Regarding Serious Safety Issues at JR Kyushu Jet Ferry Inc. Overview ⚫ In June, 2023, in response “Order to Ensure Safety of Transportation” issued by the Minister of Land, Infrastructure, Transport and Tourism, an improvement report was submitted by JR Kyushu Jet Ferry Inc. (Hereinafter referred to
Slide 32: Appendix
APPENDIX 32
Slide 33: EBITDA by Segment
EBITDA by Segment Transportation Real Estate and Hotels （¥bil） EBITDA EBITDA margin （¥bil） EBITDA EBITDA margin 40 40% 50 60% 30 29.5 30% 40.8 22.3 40 36.2 50% 20 13.1 20% 31.8 31.9 30.5 10 10% 30 17.0% 13.6% 22.2 9.5% 40% 0 0% 20 FY20.3 FY21.3 FY22.3 FY22.3 FY23.3 FY24.3 (10) -10% 30% 10 33.7% (20)
Slide 34: Trends in the Railway Business
Trends in the Railway Business Railway transportation revenues (Shinkansen), passenger Internet train reservation services: load factor on the Kyushu Shinkansen (Hakata-Kumamoto) Number of reservations, sales （¥bil） （¥bil） （10,000 rersevations） Shinkansen Passanger load factor(right) 600 36.6 40 80
Slide 35: Trends in the Real Estate and Hotel Businesses
Trends in the Real Estate and Hotel Businesses Station building tenant sales Hotel occupancy rates and average unit prices （¥bil） 300 Other major station buildings* JR Hakata City （¥） 262.8 ADR(left) Occupancy Rates(right) 24,000 100% 250 222.1 78.8% 202.6 20,000 73.3% 67.5% 80% 200 184.6 128.3 16,0
Slide 36: Overview of Major Development Pipelines
Overview of Major Development Pipelines Floor space/Lot Name Location Schedule area/Units/Roo Notes (Uses, etc.) ms Toranomon Alcea Tower (Toranomon 2-chome category Lot area: Approx. 1 urban redevelopment September 2020: Start of 22,500㎡ project) construction Minato-ku, Tokyo Floor space: Office bu
Slide 37: About the Application to Revise Rail Fares and Charges
About the Application to Revise Rail Fares and Charges ⚫ On July 19, we filed an application for approval of a change in the maximum rail fares and charges for our railway business. ⚫ On October 31, submission of a report from the Transport Council to the Minister of Land, Infrastructure, Transport
Slide 38: Railway Business—Outline of Fares/Charges and Depreciation costs
Railway Business—Outline of Fares/Charges and Depreciation costs Outline of Fares/Charges （￥bil） Trend of operating income in the railway business 400 40 ■ Breakdown of fares/charges 25.0 28.2 26.7 300 30 20.0 200 20 10.5 100 3.1 10 Charges → Compensation for the use of facilities, the provision of
Slide 39: Comprehensive Collaboration Agreements with Local Governments along the line
Creating a Model for Building Cities That Promote Well-Being | Comprehensive Collaboration Agreements with Local Governments along the line ⚫ We have signed comprehensive collaboration agreements with the Kasuya Town and the Sasaguri Town, which are located in the Fukuoka metropolitan area, and rail
Slide 40: Our Routes and Position in Relation to Airport Access Railway and TSMC's Kumamoto Plant
Our Routes and Position in Relation to Airport Access Railway and TSMC’s Kumamoto Plant ⚫ With the entry of TSMC and the construction of airport access railway, the Kumamoto area is expected to see an increase in interaction and population along the rail line. ⚫ We plan to build a new station betwee
Slide 41: 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
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