Nagoya Railroad Co., Ltd. · TSE:9048

Nagoya Railroad — H1 FY2020 Earnings Presentation

48 slides from Nagoya Railroad's earnings presentation, Nov 17, 2020

Slide 1: Six-month Period Ending September 30, 2020 Financial Results Presentation
Six-month Period Ending September 30, 2020 Financial Results Presentation for Investors Nagoya Railroad Co., Ltd. Securities Code: 9048 November 17, 2020 Copyright © Nagoya Railroad Co.,Ltd.
Slide 2: Summary of Financial Results and Performance Forecast
01 Summary of Financial Results and Performance Forecast Copyright © Nagoya Railroad Co.,Ltd. 01
Slide 3: Group Business Performance (FY2020 1st Half)
Group Business Performance (FY2020 1st Half) 【Group Business Performance Summary of Results】 FY2020 1st Half Apr. - Jun. Results Jul. - Sept. Results Cumulative Results Year-on-year change Billions Billions Billions Billions Operating revenues 109.0 of yen + 117.8 of yen ＝ 226.9 of yen - 89.1 of - y
Slide 4: Group Business Performance (FY2020 Full-year Forecast)
Group Business Performance (FY2020 Full-year Forecast) 【Group Business Performance Summary of Performance Forecast】 FY2020 Full-year Forecast Current Year-on-year forecast change Billions Billions ＜Premises of operating revenues＞ Operating revenues 493.0 of y en - 129.9 of y en - 20.9 % Calculated b
Slide 5: The Company's Passengers
The Company’s Passengers Commuter passenger numbers have recovered after bottoming out in Apr. and May, when the State of Emergency was in effect, but non-commuter numbers have remained low [Commuters] Apr.-Sept. total: 113 millions of people, 【Monthly Trends of the Railroad Passengers】 Year-on-year
Slide 6: Chubu Centrair International Airport
Chubu Centrair International Airport Passenger numbers are down, reflecting air route suspensions. Commercial facilities were also partly or completely closed but reopened with anti-COVID-19 measures in place 【Chubu Centrair International Airport】【Commercial facilities, etc. on Chubu Centrair Inter
Slide 7: The Group's Airport-Related Businesses
The Group’s Airport-Related Businesses The decrease in air travelers has caused a sharp drop in users of the Company’s airport station and the Group’s airport-related services 【Impact of Railroad】 Number of Non-Commuter Passengers to Chubu Centrair International Airport Station (thousands of people)
Slide 8: The Group's Initiatives to Respond to the COVID-19 Pandemic
The Group’s Initiatives to Respond 02 to the COVID-19 Pandemic Copyright © Nagoya Railroad Co.,Ltd. 07
Slide 9: Continuing Business Operations while Putting Safety First
Continuing Business Operations while Putting Safety First Making ongoing investments in safety while implementing anti-infection measures to help ensure the safety and peace of mind of customers and employees Making ongoing investments in safety 【Railroad】・Ongoing passenger safety and operational s
Slide 10: Improving Revenue and Expenditure Balance and Securing Cash Flows
Improving Revenue and Expenditure Balance and Securing Cash Flows Reduced operating expenses, selective capital investment (Billions of yen) Securing necessary operating capital Operating expenses Capital investment Year-on- Year-on- 〈Diagnosis〉 FY2020 FY2020 The Group will take some year year Forec
Slide 11: Impact of the COVID-19 Pandemic on the Group's Business Environment
Impact of the COVID-19 Pandemic on the Group’s Business Environment During the Pandemic After the Pandemic  Changes in lifestyle habits, such  Permanent adoption of remote working, etc. as the spread of remote working ⇒Fewer commuters ⇒Office demand diversification  Shift toward commuting by priv
Slide 12: Challenges Facing the Group Highlighted by the Changing Business Environment
Challenges Facing the Group Highlighted by the Changing Business Environment Main Challenges for the Group ● Need for structural reform in the Traffic Business and others, as the business environment is not expected to fully return to its previous state even after the pandemic, with some remote work
Slide 13: The Group's Initiatives to Respond to the COVID-19 Pandemic (1)
The Group’s Initiatives to Respond to the COVID-19 Pandemic ( 1 ) Possible Measures to Address Challenges (Railroad Business) Focus: Ensure safety while reducing costs and saving labor ➢Reduce fixed costs and establish robust profitability  Reformulate timetables and shift toward one-person train o
Slide 14: The Group's Initiatives to Respond to the COVID-19 Pandemic (2)
The Group’s Initiatives to Respond to the COVID-19 Pandemic ( 2 ) Possible Measures to Address Challenges (Group Business) Focus: Innovate and revitalize group business ➢Business structure and business model innovation  Streamline the Bus and Taxi businesses in line with demand changes (revise rout
Slide 16: Regional Development Policy (1)
Regional Development Policy ( 1 ) Regional Development Policy Local resources  Leveraging the Meitetsu Group’s characteristics and strengths  Work to not just maximize profit, but advance development leveraging the character of each area to increase the appeal of entire areas and train lines from
Slide 17: Regional Development Policy (2): Development around Nagoya Station
Regional Development Policy ( 2 ) Carefully select investments to develop real estate business in central Nagoya in anticipation of further development near Nagoya Station ➢ Development around Nagoya Station Participation in the “ NAGOYA the TOWER " Completion of Meieki development plan Egaw Line Di
Slide 18: Revisions to the Meitetsu Nagoya Station District Redevelopment Project
Regional Development Policy ( 3 ) Revisions to the Meitetsu Nagoya Station District Redevelopment Project 【Business environment changes due to the COVID-19 pandemic】・Business results have been impacted severely ・We must respond to changes in demand and will take some time to recover spurred by the
Slide 19: Regional Development Policy (4)
Regional Development Policy ( 4 ) Creating the most livable towns and top destination areas in Japan by increasing the value of Company assets near stations ➢ Jingū-mae Station Eastern District Development Plan ➢ Meitetsu Ōsato Building Renovation Plan (Slated to end the renovation Feb. 2021) [M’s C
Slide 20: Regional Development Policy (5)
Regional Development Policy ( 5 ) Developing high-value-added condominiums for purchase and other properties mainly along our train lines to increase the region’s residential population ➢ Development of Condominium Illustration Illustration Meitetsu Gifu Meitetsu Kōnan Ichinomiya Hotei Iwakura Inuya
Slide 21: Regional Development Policy (6)
Regional Development Policy ( 6 ) Creating appealing areas along train lines and travel destinations by working with local communities to uncover and promote tourism assets ➢ Uncovering regional tourism assets by working with municipalities along train lines Mitake・Kani Meitetsu Gifu Inuyama Tsushim
Slide 23: Growth Business & DX Initiatives (1)
Growth Business & DX Initiatives ( 1 ) Working with local governments and start-ups launched from local universities to conduct pilot testing aimed at the practical adoption of cutting-edge technologies ➢ Initiatives for realizing the practical use of drone ➢ Initiatives for realizing the practical
Slide 24: Growth Business & DX Initiatives (2)
Growth Business & DX Initiatives ( 2 ) Developing services to meet changing lifestyle needs by leveraging our assets near stations and strength in collaborating with communities ➢ Developing new sharing services Expanding rental spaces in our properties near stations Field testing of community bicyc
Slide 25: Growth Business & DX Initiatives (3)
Growth Business & DX Initiatives ( 3 ) Beginning organizational preparations to quickly respond to DX; using DX from the customer perspective; and using DX to realize new employee work styles ➢ Construction of organizational structure to quickly respond to DX ➢ Enhancing customer convenience and ope
Slide 27: ESG Initiatives (1): Environmental Initiatives
ESG Initiatives ( 1 ) Helping protect the environment, solve social issues and conserve cultural assets as well as disclosing such efforts to stakeholders ➢ Environmental Initiatives NAKANIHON AIR Meitetsu Transportation Formed a business tie-up agreement of Introduced the new model electric light-d
Slide 28: ESG Initiatives (2)
ESG Initiatives ( 2 ) Helping protect the environment, solve social issues and conserve cultural assets as well as disclosing such efforts to stakeholders ➢ Initiatives for society ➢ Governance Initiatives Meiji Village Museum Nagoya Railroad Preservation and exhibition of historical Strengthening t
Slide 30: Six-month Period Ending Financial Results
06 Six-month Period Ending Financial Results Copyright © Nagoya Railroad Co.,Ltd. 29
Slide 31: Six-month Period Ending Financial Results
Six-month Period Ending Financial Results ＊Figures in parentheses are the year-on-year percent change (Units: Millions of yen, %) FY2020 FY2019 Change* Notes 1st Half 1st Half -89,186 Operating revenues 226,942 316,128 (-28.2) Operating expenses 241,930 287,026 -45,096 Cost of products sold: -19,090
Slide 32: Six-month Period Ending Financial Results Highlights
Six-month Period Ending Financial Results Highlights Year-on-year: Lower revenues and recorded losses （Revenues decreased in all segments due to the COVID-19 pandemic. Profit decreased in all segments except Real Estate Business.） (Unit: Billions of yen) Operating Revenues ― Traffic -36.7（Railroad -
Slide 33: Operating Results by Segment
Operating Results by Segment (Units: Millions of yen, %) FY2020 FY2019 Operating revenues Change Percent Change 1st Half 1st Half Traffic 48,782 85,580 -36,797 -43.0 Transport 61,941 70,237 -8,295 -11.8 Real Estate 47,734 49,042 -1,307 -2.7 Leisure and Services 7,745 26,584 -18,838 -70.9 Distributio
Slide 34: Traffic Business
Traffic Business (Units: Millions of yen, %) FY2020 FY2019 Percent Change Notes 1st Half 1st Half Change Lower revenues in all businesses due to Operating revenues 48,782 85,580 -36,797 -43.0 efforts to stay home caused by the COVID- 19 pandemic Operating income -12,150 14,925 -27,075 ― Loss due to
Slide 35: Transport Business
Transport Business (Units: Millions of yen, %) FY2020 FY2019 Percent Change Notes 1st Half 1st Half Change Lower revenues in all sub-segments due in Operating revenues 61,941 70,237 -8,295 -11.8 part to decrease in cargo handling volumes caused by the COVID-19 pandemic Lower income in the Truck Busi
Slide 36: Real Estate Business
Real Estate Business (Units: Millions of yen, %) FY2020 FY2019 Percent Change Notes 1st Half 1st Half Change Lower revenues due in part to decreased Operating parking space revenue in the Rental revenues 47,734 49,042 -1,307 -2.7 Business, despite increased revenue from condominium sales Operating i
Slide 37: Leisure and Services Business
Leisure and Services Business (Units: Millions of yen, %) FY2020 FY2019 Percent Change Notes 1st Half 1st Half Change Lower revenues in all sub-segments due to Operating revenues 7,745 26,584 -18,838 -70.9 the decrease in tourism demand caused by the COVID-19 pandemic The Hotel and Tourist Facilitie
Slide 38: Distribution Business
Distribution Business (Units: Millions of yen, %) FY2020 FY2019 Percent Change Notes 1st Half 1st Half Change Lower revenues in all sub-segments due to Operating efforts to stay at home and temporary revenues 49,115 72,485 -23,369 -32.2 department store closures caused by the COVID-19 pandemic The D
Slide 39: Aviation Services Business
Aviation Services Business (Units: Millions of yen, %) FY2020 FY2019 Percent Change Notes 1st Half 1st Half Change Lower revenues due to decreased orders Operating revenues 9,964 12,268 -2,304 -18.8 received in the In-Flight Catering Business caused by the COVID-19 pandemic Operating income 181 1,18
Slide 40: Others
Others (Units: Millions of yen, %) FY2020 FY2019 Percent Change Notes 1st Half 1st Half Change Lower revenues due to decreased orders Operating revenues 19,611 22,662 -3,050 -13.5 received caused by the COVID-19 pandemic Operating income 241 1,038 -796 -76.8 Lower income due to lower revenues ◆Break
Slide 41: Non-Operating Income and Extraordinary Income
Non-Operating Income and Extraordinary Income (Units: Millions of yen) FY2020 FY2019 Change Notes 1st Half 1st Half Non-operating income 6,140 3,523 2,616 Interest income 9 15 -5 Dividend income 758 1,340 -581 Equity in net earnings of affiliates 445 1,264 -818 Others 4,926 903 4,023 (FY2020) Subsid
Slide 42: Consolidated Balance Sheets
Consolidated Balance Sheets (Units: Millions of yen) FY2020 FY2019 Change Notes 1st Half results Current assets 181,841 189,143 -7,301 Lower trade notes and accounts receivable Non-current assets 972,844 975,836 -2,992 Property and equipment 831,669 831,771 -101 Intangible assets 9,518 10,002 -483 L
Slide 43: FY2020 Operating Results Forecast
07 02 FY2020 Operating Results Forecast Copyright © Nagoya Railroad Co.,Ltd. 42
Slide 44: FY2020 Consolidated Operating Results Forecast
FY2020 Consolidated Operating Results Forecast (Units: Millions of yen, %) FY2020 FY2019 Percent Change forecast results Change Operating revenues 493,000 622,916 -129,916 -20.9 Operating income -21,500 47,363 -68,863 ― Non-operating revenues 7,500 6,384 1,116 Non-operating expenses 4,000 4,459 -459
Slide 45: Operating Results Forecast Highlights
Operating Results Forecast Highlights Year-on-year: Lower revenues and record losses （Revenues and profit decreased in all segments, mainly in the Traffic Business and Leisure and Services Business due to the COVID-19 pandemic.） (Unit: Billions of yen) Operating Revenues － Traffic -50.2（Railroad -26
Slide 46: FY2020 Operating Results Forecast by Segment
FY2020 Operating Results Forecast by Segment (Units: Millions of yen, %) FY2020 FY2019 Percent Operating revenues Change forecast results Change Traffic 113,300 163,544 -50,244 -30.7 Transport 128,200 138,220 -10,020 -7.2 Real Estate 86,000 100,869 -14,869 -14.7 Leisure and Services 27,200 50,137 -2
Slide 47: FY2020 EBITDA and Capital Investment Forecast
FY2020 EBITDA and Capital Investment Forecast (Units: Millions of yen) FY2020 FY2019 FY2020 FY2019 Change Change forecast results forecast results Operating income -16,400 21,577 -37,977 Operating income -2,600 330 -2,930 Depreciation and Depreciation and amortization 18,500 18,577 -77 amortization
Slide 48: Future projections contain risks and uncertainty
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

Nagoya Railroad — H1 FY2020 Earnings Presentation on 6ix

Nagoya Railroad — H1 FY2020 Earnings Presentation

Slide 1: Six-month Period Ending September 30, 2020 Financial Results Presentation

Slide 2: Summary of Financial Results and Performance Forecast

Slide 3: Group Business Performance (FY2020 1st Half)

Slide 4: Group Business Performance (FY2020 Full-year Forecast)

Slide 5: The Company's Passengers

Slide 6: Chubu Centrair International Airport

Slide 7: The Group's Airport-Related Businesses

Slide 8: The Group's Initiatives to Respond to the COVID-19 Pandemic

Slide 9: Continuing Business Operations while Putting Safety First

Slide 10: Improving Revenue and Expenditure Balance and Securing Cash Flows

Slide 11: Impact of the COVID-19 Pandemic on the Group's Business Environment

Slide 12: Challenges Facing the Group Highlighted by the Changing Business Environment

Slide 13: The Group's Initiatives to Respond to the COVID-19 Pandemic (1)

Slide 14: The Group's Initiatives to Respond to the COVID-19 Pandemic (2)

Slide 15: Regional Development Policy

Slide 16: Regional Development Policy (1)

Slide 17: Regional Development Policy (2): Development around Nagoya Station

Slide 18: Revisions to the Meitetsu Nagoya Station District Redevelopment Project

Slide 19: Regional Development Policy (4)

Slide 20: Regional Development Policy (5)

Slide 21: Regional Development Policy (6)

Slide 22: Growth Business & DX Initiatives

Slide 23: Growth Business & DX Initiatives (1)

Slide 24: Growth Business & DX Initiatives (2)

Slide 25: Growth Business & DX Initiatives (3)

Slide 26: ESG Initiatives

Slide 27: ESG Initiatives (1): Environmental Initiatives

Slide 28: ESG Initiatives (2)

Slide 29: Memo

Slide 30: Six-month Period Ending Financial Results

Slide 31: Six-month Period Ending Financial Results

Slide 32: Six-month Period Ending Financial Results Highlights

Slide 33: Operating Results by Segment

Slide 34: Traffic Business

Slide 35: Transport Business

Slide 36: Real Estate Business

Slide 37: Leisure and Services Business

Slide 38: Distribution Business

Slide 39: Aviation Services Business

Slide 40: Others

Slide 41: Non-Operating Income and Extraordinary Income

Slide 42: Consolidated Balance Sheets

Slide 43: FY2020 Operating Results Forecast

Slide 44: FY2020 Consolidated Operating Results Forecast

Slide 45: Operating Results Forecast Highlights

Slide 46: FY2020 Operating Results Forecast by Segment

Slide 47: FY2020 EBITDA and Capital Investment Forecast

Slide 48: Future projections contain risks and uncertainty