Tobu Railway Co., Ltd. · TSE:9001
Tobu Railway — FY2020 Earnings Presentation
45 slides from Tobu Railway's earnings presentation, May 14, 2021
Slide 1: FY2020 Financial Results Briefing
FY2020 Financial Results Briefing May 14, 2021 TOBU RAILWAY CO., LTD.
Slide 2: Table of Contents
Table of Contents • I. FY2020 Business Results P. 02 • II.FY2020 Full Year Forecast P. 14 • Ⅲ. Our goal P. 23 All rights reserved. Copyright © TOBU RAILWAY CO.,LTD. 2021 1
Slide 3: I. FY2020 Business Results: Subsidiaries and Affiliates
I. FY2020 Business Results Subsidiaries March March Change Notes 2020 2020 Transportation 27 - 27 Leisure 22 - 22 Real Estate 3 - 3 Retail Distribution 12 - 12 Other 16 - 16 Total 80 - 80 Affiliates March March Change Notes 2020 2020 Transportation 1 - 1 Leisure 2 - 2 Real Estate - - - Retail Distri
Slide 4: Consolidated statement of income
I. FY2020 Business Results Consolidated statement of income Unit: Millions of yen FY2020 FY2020 FY2019 Change Notes Change Results Plan Results Transportation +322, Leisure -45 Revenue from Operations 496,326 492,200 4,126 Real Estate +1,628 653,874 -157,547 Retail Distribution +3,653, Other -2,237
Slide 5: Consolidated balance sheet
I. FY2020 Business Results Consolidated balance sheet Unit: Millions of yen FY2020 FY2019 Change Notes Results Results Current assets 158,452 141,385 17,066 Cash and deposits＋13,540 Non-current assets 1,524,044 1,514,706 9,338 Total assets 1,682,497 1,656,092 26,405 Current liabilities 397,788 379,2
Slide 6: Consolidated statement of cash flows
I. FY2020 Business Results Consolidated statement of cash flows Unit: Millions of yen FY2020 FY2019 Change Notes Results Results Cash flows from operating activities 39,504 101,136 -61,632 Income before income taxes -76,437 Cash flows from investing activities -66,283 -75,621 9,337 Purchase of non-c
Slide 7: Segment Information (Transportation)
I. FY2020 Business Results Segment Information(Transportation) Unit: Millions of yen FY2020 FY2020 FY2020 Change Notes Change Results Plan Results Revenue from Operations 159,122 158,800 322 215,427 -56,304 Railways 117,459 116,700 759 163,033 -45,573 Other 41,663 42,100 -437 Bus and taxi business -
Slide 8: Tobu Railway Lines Railway Business
I. FY2020 Business Results Tobu Railway Lines Railway Business (Number of Passengers) Unit: 1 Million people (Passenger Revenue) Unit: Millions of yen FY2020 FY2020 FY2019 FY2020 FY2020 FY2019 Results Plan Results Results Plan Results Commuter Passengers 459 470 606 Commuter Passengers 51,893 52,145
Slide 9: Segment Information (Leisure)
I. FY2020 Business Results Unit: Millions of Segment Information (Leisure) yen FY2020 FY2020 FY2019 Change Notes Change Results Plan Results Revenue from Operations 39,055 39,100 -45 72,072 -33,017 Hotel 7,205 7,100 105 17,305 -10,099 SKYTREE 4,814 4,900 -86 12,825 -8,011 Amusement parks and tourism
Slide 10: Main Hotels
I. FY2020 Business Results Main Hotels Percentage of Occupancy FY2020 FY2020 FY2019 FY2020 FY2019 foreign Rate Results Plan Results Results Results nationals CY Ginza 16.2% 15.8% 87.5% CY Ginza 4.8% 73.1% AC Ginza 11.6% 10.0% ー AC Ginza 4.3% ー Kinshicho 15.4% 15.2% 78.2% Kinshicho 0.5% 60.3% Narita
Slide 11: Segment Information (Real Estate)
I. FY2020 Business Results Segment Information (Real Estate) Unit: Millions of yen FY2020 FY2020 FY2019 Change Notes Change Results Plan Results Revenue from Operations 54,228 52,600 1,628 67,912 -13,684 Leasing business 38,149 37,000 1,149 38,661 -512 SKYTREE TOWN 9,687 9,700 -13 12,160 -2,472 Subd
Slide 12: Segment Information (Retail Distribution)
I. FY2020 Business Results Segment Information (Retail Distribution) Unit: Millions of yen FY2020 FY2020 FY2019 Change Notes Change Results Plan Results Revenue from Operations 216,253 212,600 3,653 266,418 -50,164 Department stores 119,288 115,800 3,488 168,117 -48,828 Store 83,115 83,000 115 80,12
Slide 13: Change in Sales at Major Department Stores
I. FY2020 Business Results Change in Sales at Major Department Stores FY2020 Results FY2020 Plan vs. Previous Year vs. Previous Year Ikebukuro -30.8％ -33.4％ Funabashi -31.2％ -33.5％ Utsunomiya -22.5％ -22.3％ Results Plan Funabashi Store sales vs. （％） Ikebukuro Store sales vs. （％） （％） Utsunomiya Store
Slide 14: Segment Information (Other)
I. FY2020 Business Results Segment Information (Other) Unit: Millions of yen FY2020 FY2020 FY2019 Change Notes Change Results Plan Results Revenue from Operations 88,863 91,100 -2,237 110,513 -21,649 Operating Income 2,876 1,600 1,276 5,375 -2,499 Operating Income ROA 1.2% 0.6% ＋0.6Ｐ 2.1% -0.9Ｐ Depr
Slide 15: Assumptions of FY2021 plan
II. FY2021 Plan Assumptions of FY2021 plan FY2020 Results FY2021 Plan No social restrictions with declaration of state of emergency Social restrictions associated with two declarations Overall No effect expected from spread of vaccine of state of emergency Tokyo Olympics/Paralympics held as planned
Slide 16: FY2021 Plan: Consolidated statement of income
II. FY2021 Plan Consolidated statement of income Unit: Millions of yen FY2020 FY2021 Plan YoY Results full year Notes New full-year *Old full-year Monetary criteria criteria impact of 21New ‐ 20 21Old ‐ 20 1H 2H A B change C （A-C） （B-C） （B-C） Transportation +18,578, Leisure +18,645, Revenue from Ope
Slide 17: YoY Change in Revenue and Operating Income
II. FY2021 Plan Elimination YoY Change in Revenue from Operations (Hundred millions of yen) Other Impact on criteria for Transportation 0 recognizing Retail revenue (－)Tenant utilities Real Distribution +732 Estate 5,200 Leisure + 537 (+) Travel agency revenue Leisure (－) Amusement parks agency reve
Slide 18: Consolidated Cash Flow Plan
II. FY2021 Plan Consolidated Cash Flow Plan Unit: Millions of yen FY2021 FY2020 Change Notes Plan Results EBITDA 75,000 43,087 31,913 Operating Income 19,400 -13,577 32,977 Depreciation 55,600 56,664 -1,064 Interest-bearing debt balance 831,600 837,279 -5,679 Interest-bearing debt/EBITDA multiple 11
Slide 19: FY2021 Plan: Segment Information (Transportation)
II. FY2021 Plan Segment Information (Transportation) Unit: Millions of yen FY2020 FY2021 Plan YoY Results New full-year *Old full-year Notes Monetary criteria criteria full year impact of 21New ‐ 20 21Old ‐ 20 change 1H 2H A B C （A-C） （B-C） （B-C） Revenue from 87,200 90,500 177,700 177,700 0 159,122
Slide 20: FY2021 Plan: Segment Information (Leisure)
II. FY2021 Plan Segment Information (Leisure) Unit: Millions of yen FY2020 FY2021 Plan YoY Results Notes New full-year *Old full-year Monetary full year 21New ‐ 20 21Old ‐ 20 criteria criteria impact of １H ２H A B change C （A-C） （B-C） （B-C） Revenue from 43,500 67,900 111,400 57,700 53,700 39,055 72,3
Slide 21: FY2021 Plan: Segment Information (Real Estate)
II. FY2021 Plan Segment Information (Real Estate) Unit: Millions of yen FY2020 FY2021 Plan YoY Results Notes Monetary New full-year *Old full-year impact of full year 21New ‐ 20 21Old ‐ 20 criteria criteria change 1H 2H A B C （A-C） （B-C） （B-C） Revenue from Operations 35,300 26,200 61,500 63,700 -2,2
Slide 22: FY2021 Plan: Segment Information (Retail Distribution)
II. FY2021 Plan Segment Information (Retail Distribution) Unit: Millions of yen FY2020 FY2021 Plan YoY Results Monetary Notes New full-year *Old full-year impact of full year 21New ‐ 20 21Old ‐ 20 criteria criteria change 1H 2H A B C （A-C） （B-C） （B-C） Revenue from 71,400 74,400 145,800 241,400 -95,6
Slide 23: FY2021 Plan: Segment Information (Other)
II. FY2021 Plan Segment Information (Other) Unit: Millions of yen FY2020 FY2021 Plan YoY Results Monetary Notes New full-year *Old full-year full year impact of 21New ‐ 20 21Old ‐ 20 criteria criteria change 1H 2H A B C （A-C） （B-C） （B-C） Revenue from 40,400 48,100 88,500 95,900 -7,400 88,863 -363 7,
Slide 24: III-1. Business Policies
III-1. Business Policies Company-wide strategy based on changes in business environment Promotion of sustainable business ■ Promotion of business structure reform Strengthen management structure by promoting establishment of plan to lower break-even point and address needs ■Group business consolidat
Slide 25: Future road map
III-1. Business Policies Future road map Promotion of sustainable businesses FY2017 to FY2019 FY2020 to FY2021 (2 years) FY2022 - (about 3 years) Business Structure Next Medium-Term Previous Growth Medium Term Reform Management Plan Business Plan (implement short-term measures, (strengthen stage rev
Slide 26: Issues for this fiscal year
III-1. Business Policies Issues for this fiscal year ■Securing of consolidated recurring income Thoroughly reduce costs and lower break-even point to create business structure that generates profit even in harsh business environments ■ Reduction of interest-bearing debt Decrease interest-bearing deb
Slide 27: Promotion of business structure reform in transportation business
III-2. Reforming the Business Structure Promotion of business structure reform in transportation business Railway initiatives ■Expansion of one-man operation sections Progress on cost reductions* • Increased efficiency of train operations Approx. 9% Aim for further ■Improvement of service through in
Slide 28: Achieving driverless operations in transportation business
III-2. Reforming the Business Structure Achieving driverless operations in transportation business ■ Auto driving verification underway on Tobu Daishi Line (FY2023 or beyond) Railways • First auto driving verification with no driver among major private railways • Carried out between Nishiarai and Da
Slide 29: Promotion of business structure reform in leisure business
III-2. Reforming the Business Structure Promotion of business structure reform in leisure business Hotel initiatives TOBU TOP TOURS initiatives ■ Priorities ■ Reduce costs by consolidating Shrink and withdraw from banquet and wedding ceremony category, counter stores (-11 stores) streamline operatio
Slide 30: Promotion of business structure reform in retail distribution business
III-2. Reforming the Business Structure Promotion of business structure reform in retail distribution business Initiatives for low-cost operations Review approach to stores ■ Tobu Stores ■ Tobu department stores • Opening of online Tobu Store • Promotion of conversion to tenants • Expansion of sales
Slide 31: Restructuring of Group businesses
III-2. Reforming the Business Structure Restructuring of Group businesses Full utilization of Efficient utilization of size Introduction of area/business category advantage, human services using new characteristics resources, capital, etc. technology Policy FY2020 1H FY2021 2H FY2021 and beyond Plan
Slide 32: Promotion of Businesses that Address Diversification of Daily Life Needs
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Create new value using the power of many connections Addressing of Network of connecting railways diversification Connect multiple generations of needs ✓Creation of business commutation ✓Development of stations/towns env
Slide 33: Business plans by area
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Business plans by area Area Past initiatives Future plans ✓Promotion of further revitalization of ✓Opening of TOKYO mizumachi Asakusa/Tokyo Skytree area Asakusa/ ✓Opening of Sumida River Walk ✓Tokyo Skytree Town expansio
Slide 34: Introduction of Japan's first environmentally friendly tourism MaaS
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Introduction of Japan’s first environmentally friendly tourism MaaS Nikko MaaS (tentative name) Launch in FY2021 (scheduled) EV buses On-demand buses Revaty limited express Experiential content/facility admission tickets
Slide 35: Roll-out of MaaS along Tobu lines
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Roll-out of MaaS along Tobu lines Speedy product development/sales based on railways Uncover latent needs by analyzing data Buses/ Railways taxi Municipality services Services Other Tobu Group Leisure Bicycle Commercial
Slide 36: Initiatives utilizing TOBU POINT
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Initiatives utilizing TOBU POINT Future numerical targets Strengthening of organization with Launch of service on November 1, 2020 introduction of boarding points (autumn of 2021) Number of members acquired via TOBU POIN
Slide 37: Improving value of station stores and area around stations
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Improving value of station stores and area around stations Improvement of station profitability/convenience Enhancement of area around stations ✓ Active development of station ✓ Development of station fronts connected bu
Slide 38: Further strengthening of Tokyo Skytree Town foundation
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Further strengthening of Tokyo Skytree Town foundation Initiatives for local area/railway lines Post-COVID-19 strategy customers ✓ Trend in Tokyo Solamachi sales ✓ Tokyo Solamachi tenant (illustration) turnover Aim for h
Slide 39: Development in 30 km radius of Tokyo
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Development in 30 km radius Strengthening in city center of foundation whereSkytree of Tokyo needs are increasing Town Rental condominiums with work spaces Condominiums promoting interaction Solaie I’ll Shingashi Solaie
Slide 40: Aiming to solve social problems and capture new needs
III-3. Promotion of Businesses that Address Diversification of Daily Life Needs Aiming to solve social problems and capture new needs Provision of forum for education Reduction of food loss ■ Extracurricular learning support ■ Transport of agricultural products utilizing campaigns operating trains •
Slide 41: Key issues (materiality): Process up to identification
III-4. Aiming for Solutions to Social Problems and Growth of Area Along Tobu Line Key issues (materiality): Process up to identification STEP STEP STEP Sort social 1 2 Mapping of 3 Identification of problems to be considered priority materiality Sorting by considering member Evaluate 44 items identi
Slide 42: Key issues (materiality) and new value creation
III-4. Aiming for Solutions to Social Problems and Growth of Area Along Tobu Line Key issues (materiality) and new value creation Creation of area where people want to continue to live and visit Provide kindness with power of connections Sustainable development of area Enhance connection initiatives
Slide 43: Tobu Group approach to value creation
III-4. Aiming for Solutions to Social Problems and Growth of Area Along Tobu Line Tobu Group approach to value creation Power of Continue to provide Create area where people want connections kind services to continue to live and visit ✓ Leisure facilities to enrich daily life People People-friendly
Slide 44: Aiming to create a sustainable society
III-4. Aiming for Solutions to Social Problems and Growth of Area Along Tobu Line Aiming to create a sustainable society ■TOKYO SKYTREE special lighting (17 colors) ■TOKYO SKYTREE: W1SH RIBBON DISCOVER & CONNECT THE WORLD W1SH RIBBON What is W1SH RIBBON? DISCOVER & CONNECT THE WORLD Monument embodyi
Slide 45: Important Notes Concerning This Document
Important Notes Concerning This Document The Company’s profit plans and other goals set forth in this document are based on projections of industry trends related to the business of the Company and Group companies and other such factors that impact business results, including the economy in Japan an