Nagoya Railroad Co., Ltd. · TSE:9048
Nagoya Railroad — FY2024 Earnings Presentation
43 slides from Nagoya Railroad's earnings presentation, May 9, 2025
Slide 1: Fiscal Year Ended March 31, 2025 Financial Results Presentation for Investors
Fiscal Year Ended March 31, 2025 Financial Results Presentation for Investors Nagoya Railroad Co., Ltd. Securities Code: 9048 May 9, 2025 Copyright © Nagoya Railroad Co.,Ltd. 1
Slide 2: Contents
Contents 01 Medium- to Long-term Management Strategies 02 Results summary 03 FY2024 Financial Results 04 FY2025 Operating Results Forecast Copyright © Nagoya Railroad Co.,Ltd. 2
Slide 3: Medium- to Long-term Management Strategies
Medium- to Long-term 01 Management Strategies Copyright © Nagoya Railroad Co.,Ltd. 3
Slide 4: The Meitetsu Group's Growth Story
The Meitetsu Group’s Growth Story The Group’s Mission Growth opportunities Potential of our business area Work to improve the value of the region and give back to the Opening of the Linear Chuo community over the long haul Shinkansen maglev line, Further development of the Chubu Unique history and c
Slide 5: Overview of the Nagoya Station District Redevelopment Project
Overview of the Nagoya Station District Redevelopment Project Nagoya Station District Redevelopment Project We decided to get commercially involved in the Nagoya Station District Redevelopment Project currently under consideration in March 2025. Seizing on the rare opportunities presented by the ope
Slide 6: Overview of the Nagoya Station District Redevelopment Project
Overview of the Nagoya Station District Redevelopment Project Overview of the Project • Joint operators:Nagoya Railroad Co., Ltd., Meitetsu City JR Nagoya Station Design Co. Ltd., Nippon Life Insurance Company, Kintetsu Railway Co., Ltd., Sasashima Live Kintetsu Real Estate Co., Ltd. • Location:1-2
Slide 7: Economic impact from the Nagoya Station District Redevelopment
Ref.) Economic impact from the Nagoya Station District Redevelopment to be captured to the extent possible by the Group In addition to direct consumption activities (office, commercial facilities, hotel) at the building of the Nagoya Station District Redevelopment, attract related consumption in the
Slide 8: Target figures for Medium-term Management Plan and Shareholder Returns
Target figures for Medium-term Management Plan(FY2024-FY2026) and FY2030 Management Indicators, Policy on Shareholder Returns FY2026 targets are operating income of ¥50.0 billion and ROE of approx. 8% and we will enhance shareholder returns from profit growth. FY2024 actual FY2025 forecast FY2026 ta
Slide 9: How each business is positioned and relevant to the Group's growth
How each business is positioned and relevant to the Group’s growth Growth is centered on the real estate business while the traffic business is our profit base. Aim for further growth in the areas of information & technology, aviation and mobility service. Business aiming for profit Business aiming
Slide 10: Plot analysis of business portfolio: ROA and operating income
Ref.) Plot analysis of business portfolio｜ROA and operating income amount Based on the plot analysis of ROA and operating income amount, we positioned and categorized our portfolio into four businesses. Size of circle shows asset size ROA※1 (%) ¥100.0 billion Legend How business is positioned • Core
Slide 11: Mid-to-long term target figures / Policy on Shareholder Returns
Mid-to-long term target figures / Policy on Shareholder Returns We will provide stable shareholder returns led by profit growth, though the net interest-bearing debt/EBITDA ratio will tentatively exceed 7x in the mid-to-long term from higher investment including the Nagoya Station district Redevelop
Slide 12: Results summary
02 Results summary Copyright © Nagoya Railroad Co.,Ltd. 12
Slide 13: Group Business Performance
Group Business Performance ■ FY2024 Consolidated results (Billions of yen, %) ■ Operating income by segment Change from forecast （Billions of yen) Results YoY change (from Feb.) Operating revenues 690.7 89.5 14.9 % (4.2) Operating income 42.0 7.3 21.1 % (1.9) Ordinary income 47.6 10.1 27.0 % (1.3) P
Slide 14: FY2025 Consolidated operating results forecast
FY2025 Consolidated operating results forecast ■ FY2025 Consolidated operating results forecast (Billions of yen, %) Year-on-year comparisons: Results YoY change Operating revenues: Increased revenues ・Revenues increased in the Transport and Traffic Operating revenues 710.0 19.2 2.8 % businesses ・Re
Slide 15: Operating Income by Segment
Operating Income by Segment (Units: Billions of yen) 48 +0.7 44 +0.7 -4.5 +1.0 +0.5 44.0 +0.2 -0.4 40 42.0 -0.1 FY2024 operating Traffic Transport Real Estate Leisure and Distribution Aviation Other Adjustment(*) FY2024 actual income forecast Services Services operating income (as of Feb.2025) 48 -5
Slide 16: Transport (Truck) Business
Transport (Truck) Business Profit improvement of Truck Business (Units: Billions of yen) +3.0 +3.0 FY2024 actual +3.9 operating income 0 -2.5 +3.6 FY2025 operating income forecast -5.3 +3.3 -5.3 Rise in volume Fare revision Improvement Reduced due to of labor outsourcing consolidation, business cond
Slide 17: Real Estate Business
Real Estate Business Operating income for FY2025 is expected to decrease due to a drop following a surge in condominium and single-family house sales and asset sales seen in the previous year. Diversifying the Real Estate Business (illustrative) Property Redevelopment management Sale Operational Sal
Slide 18: Traffic Business
Traffic Business ■ Nagoya Railroad, Transportation Results (Unit: Thousands of people, %) (Unit: Millions of yen, %) Percent Percent Passengers FY2024 Transfer Revenues FY2024 change change Transfer revenues increased Non-commuters 121,323 2.1 % Non-commuters 53,227 13.5 % by 11.7% year on year than
Slide 19: Administrative Discussion on Route Retention or Closure
Reference) Administrative Discussion on Route Retention or Closure Ongoing administrative discussion with local governments on the future of the low-ridership Nishio/Gamagori Lines and Hiromi Line 【Nishio/Gamagori Lines】(currently operated with grant of ¥250 mln per year) ・Gamagori Line to be mainta
Slide 20: Segment results, forecast, and targets during the Medium-term Management Plan
Segment results, forecast, and targets during the period of Medium-term Management Plan (FY2024-FY2026) (Units: Millions of yen) FY2024 Forecast* FY2024 Results Change FY2025 Forecast Change FY2026 Targets Change Operating income （A） （B） （=B-A） （C） （=C-B） （D） （=D-C） Traffic 18,900 19,602 702 18,200
Slide 21: Capital Expenditure Plan by Segment for Medium-term Management Plan
Capital Expenditure Plan by Segment for Period of Medium-term Management Plan (FY2024–FY2026) Turn-Over 2023 Medium-term Management Plan (FY2024–FY2026) (Units: Billions of yen) FY2021–FY2023 FY2024 FY2025 FY2026 Total of of which of which of which of which of which Actual Strategic Actual Strategic
Slide 22: Cash flow allocation policy during Medium-term Management Plan
Cash flow allocation policy during the period of Medium-term Management Plan (FY2024-FY2026) Maximize the operating cash flow while prioritizing investment to ensure safety and peace of mind through growth investment such as for the real estate business, investment for structural reforms and human c
Slide 23: Measures to improve PBR
Ref.) Measures to improve PBR Initiatives to improve PBR which stands below 1x Profit growth Profit margin • Realize sustainable stable management of the traffic business (Profit on sales • Aggressive investment to grow real estate business improvement) • Improve profitability of transport and distr
Slide 24: FY2024 Financial Results
03 FY2024 Financial Results Copyright © Nagoya Railroad Co.,Ltd. 24
Slide 25: FY2024 Financial Results
FY2024 Financial Results (Millions of yen) Latest Forecast FY2024 FY2023 Change Notes Change as of Feb. 89,598 Transport +41,874, Real Estate +21,122, Traffic +13,243, (4,279) Operating revenues 690,720 601,121 Others +11,589, Leisure and Service +3,910, Aviation 695,000 14.9% Services +3,503, Distr
Slide 26: Financial Results Highlights
Financial Results Highlights Year-on Year: Increased revenue and increased profit (Revenues increased in all businesses. Net profit reached a record high due to an increase in operating income driven by higher revenue, as well as improvements in non-operating income and extraordinary income.） (Billi
Slide 27: Operating Results by Segment
Operating Results by Segment (Millions of yen) Percent Latest Forecast Percent Operating revenue FY2024 FY2023 Change as of Feb. Change Change Change Traffic 159,825 146,582 13,243 9.0% 159,500 325 0.2% Transport 180,183 138,308 41,874 30.3% 185,500 (5,316) -2.9% Real Estate 129,028 107,906 21,122 1
Slide 28: Traffic Business
Traffic Business （Units：Millions of yen, ％） Percent FY2024 FY2023 Change Notes Change Operating revenue increased, driven by fare revisions in the Operating revenues 159,825 146,582 13,243 9.0 railroad business and bus business and an increase in the number of passengers. Operating income rose due t
Slide 29: Transport Business
Transport Business ◆Breakdown of Transport Business◆ （Units：Millions of yen, ％） Operating revenues Operating income Percent Percent FY2024 FY2023 Change Change FY2024 FY2023 Change Change Trucking 196,601 154,118 42,483 27.6 △ 5,303 1,117 △ 6,420 ― Maritime Transportation 18,554 16,778 1,775 10.6 1,
Slide 30: Real Estate Business
Real Estate Business （Units：Millions of yen, ％） Percent FY2024 FY2023 Change Notes Change Operating revenue increased, driven an increase in the number of Operating revenues 129,028 107,906 21,122 19.6 units delivered in condominium sales and proceeds from sales of assets to real estate funds. Opera
Slide 31: Leisure and Services Business
Leisure and Services Business （Units：Millions of yen, ％） Percent FY2024 FY2023 Change Notes Change Operating revenue increased, mainly due to increased revenue in the Operating revenues 102,682 98,772 3,910 4.0 hotel business driven by a recovery in tourism demand. Operating income declined as gains
Slide 32: Distribution Business
Distribution Business （Units：Millions of yen, ％） Percent FY2024 FY2023 Change Notes Change Operating revenue increased, mainly due to higher revenue from Operating revenues 69,112 66,676 2,436 3.7 other merchandise sales despite a decline in revenue from department store operations due to store clos
Slide 33: Aviation Services Business
Aviation Services Business （Units：Millions of yen, ％） Percent FY2024 FY2023 Change Notes Change Operating revenue increased, mainly due to growth in the flight Operating revenues 29,781 26,278 3,503 13.3 catering business and increased orders in the helicopter business and survey and measurement bus
Slide 34: Others
Others （Units：Millions of yen, ％） Percent FY2024 FY2023 Change Notes Change Operating revenue increased, mainly due to contributions from construction Operating revenues 67,973 56,383 11,589 20.6 subsidiaries newly consolidated in the previous fiscal year and an increase in equipment construction or
Slide 35: Non-Operating Income and Extraordinary Income
Non-Operating Income and Extraordinary Income (Millions of yen) FY2024 FY2023 Change Notes Non-operating income 9,862 6,737 3,124 Interest income 227 47 179 Dividend income 1,938 1,379 558 Equity in net earnings of affiliates 5,798 2,996 2,802 (current FY) Tosei joined, etc. Others 1,898 2,313 (415)
Slide 36: Consolidated Balance Sheets
Consolidated Balance Sheets （Units：Millions of yen,） FY2024 FY2023 Change Notes Current assets 256,417 238,484 17,932 Increase in Land and buildings for sale in lots Non-current assets 1,192,491 1,064,720 127,770 Capital investment ＋121,455 Property and equipment 997,980 893,624 104,356 Consolidatio
Slide 37: EBITDA and Capital Investment
EBITDA and Capital Investment (Millions of yen) FY2024 FY2023 Change FY2024 FY2023 Change Operating income 19,602 12,980 6,621 Operating income (1,292) (2,697) 1,405 Depreciation Depreciation and amortization 18,666 17,847 819 and amortization 1,427 1,217 210 1 Traffic EBITDA* (A) 38,269 30,827 7,44
Slide 38: FY2025 Operating Results Forecast
FY2025 Operating 04 Results Forecast Copyright © Nagoya Railroad Co.,Ltd. 38
Slide 39: FY2025 Consolidated Operating Results Forecast
FY2025 Consolidated Operating Results Forecast (Millions of yen) FY2025 FY2024 Percent Change Forecast Results Change Operating revenue 710,000 690,720 19,280 2.8% Operating income 44,000 42,076 1,924 4.6% Non-operating rrevenue 5,200 9,862 (4,662) Non-operating expenses 6,700 4,267 2,433 Ordinary i
Slide 40: Operating Results Forecast Highlights
Operating Results Forecast Highlights YoY: Higher revenue and lower profit (Revenues are expected to increase mainly in the Traffic and Transport businesses. Despite increased operating income driven by higher revenue, net profit is forecast to decline due to the elimination of special factors.) （Bi
Slide 41: FY2025 Operating Results Forecast by Segment
FY2025 Operating Results Forecast by Segment (Units: Millions of yen) Percent Operating revenue FY2025 forecast FY2024 results Change Change Traffic 175,100 159,825 15,275 9.6% Transport 190,400 180,183 10,217 5.7% Real Estate 121,500 129,028 (7,528) -5.8% Leisure and Services 105,900 102,682 3,218
Slide 42: FY2025 EBITDA and Capital Investment Forecast
FY2025 EBITDA and Capital Investment Forecast (Millions of yen) FY2025 FY2024 FY2025 FY2024 Change Change forecast results forecast results Operating income 18,200 19,602 (1,402) Operating income (1,200) (1,292) 92 Depreciation Depreciation and amortization 21,200 18,666 2,534 and amortization 1,100
Slide 43: In addition to factual past events, this document includes future projections, which contain risks
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. 43