Tobu Railway Co., Ltd. · TSE:9001
Tobu Railway — FY2021 Earnings Presentation
41 slides from Tobu Railway's earnings presentation, May 13, 2022
Slide 1: FY2021 Financial Results Briefing
FY2021 Financial Results Briefing May 13, 2022 TOBU RAILWAY CO., LTD.
Slide 2: Table of Contents
Table of Contents Ⅰ.FY2021 Business Results Ｐ０２ Ⅱ.FY2022 Plan Ｐ１３ Ⅲ.Medium-Term Business Plan Ｐ２２ All rights reserved. Copyright © TOBU RAILWAY CO.,LTD. 1
Slide 3: FY2021 Business Results – Subsidiaries and Affiliates
Ⅰ．FY2021 Business Results ― Subsidiaries・Affiliates March March Subsidiaries 2021 Increase Decrease 2022 Notes Transportation 27 - 1 26 October 2021 TOBU BUS EAST CO.,LTD Merger February2022 Decrease from transfer of Tanigawadake Leisure 22 - 1 21 Ropeway Co., Ltd shares Real Estate 3 - - 3 Retail D
Slide 4: Consolidated statement of income
Ⅰ．FY2021 Business Results ― Consolidated statement of income FY2021 FY2021 FY2020 Unit: Millions of yen Change Notes Change Results Plan Results Transportation +64, Leisure +2,511, Revenue from 506,023 503,200 2,823 Real Estate +1,103, 496,326 9,696 Operations Retail Distribution +40, Other-3,203 Tr
Slide 5: Impact of Accounting Standard for Revenue Recognition
Ⅰ．FY2021 Business Results ― Impact associated with application of Accounting Standard for Revenue Recognition FY2021 FY2021 Change FY2020 ※ Results 21 (previous Results Results （previous standard） standard) – 20 Unit: Millions of yen A B A-B C B-C Revenue from 506,023 553,412 -47,389 496,326 57,086
Slide 6: Consolidated balance sheet
Ⅰ．FY2021 Business Results ― Consolidated balance sheet FY2021 FY2020 Unit: Millions of yen Change Notes Results Results Current assets 167,475 158,452 9,022 Notes and accounts receivable - trade＋12,330 Non-current assets 1,522,380 1,524,044 -1,664 Total assets 1,689,855 1,682,497 7,358 Current liabi
Slide 7: Consolidated statement of cash flows
Ⅰ．FY2021 Business Results ― Consolidated statement of cash flows FY2021 FY2020 Unit: Millions of yen Change Notes Results Results Cash flows from operating activities 66,851 39,504 27,347 Income before income taxes＋46,180 Decrease in expenditures for purchase of fixed assets Cash flows from investin
Slide 8: FY2021 Business Results – Transportation
Ⅰ．FY2021 Business Results ― Transportation FY2021 FY2021 FY2020 Unit: Millions of yen Change Notes Change Results Plan Results Revenue from 173,264 173,200 64 159,122 14,142 Operations Railways 127,975 127,400 575 117,459 10,516 Bus and taxi business -211, Other 45,289 45,800 -511 41,663 3,624 Freig
Slide 9: FY2021 Business Results – Railway Business
Ⅰ．FY2021 Business Results ― Railway Business Number of Passengers Passenger Revenue Tobu Railway Lines Tobu Railway Lines FY2021 FY2021 FY2020 FY2021 FY2021 FY2020 Number of Passengers Passenger Revenue Results Plan Results (Unit: Millions of yen) Results Plan Results (Unit: 1 Million people) Commut
Slide 10: FY2021 Business Results – Leisure
Ⅰ．FY2021 Business Results ― Leisure FY2021 FY2021 FY2020 Unit: Millions of yen Change Notes Change Results Plan Results Revenue from 108,311 105,800 2,511 39,055 69,256 Operations Hotel 11,879 12,700 -821 7,205 4,673 SKYTREE 5,829 5,600 229 Amusement parks and tourism ＋104, 4,814 1,015 Sports ＋51, T
Slide 11: FY2021 Business Results – Real Estate
Ⅰ．FY2021 Business Results ― Real Estate FY2021 FY2021 FY2020 Unit: Millions of yen Change Notes Change Results Plan Results Revenue from 62,203 61,100 1,103 54,228 7,974 Operations Leasing business 37,663 36,700 963 38,149 -485 SKYTREE TOWN 9,646 9,600 46 9,687 -41 Subdivision business 14,893 14,800
Slide 12: FY2021 Business Results – Retail Distribution
Ⅰ．FY2021 Business Results ― Retail Distribution FY2021 FY2021 FY2020 Unit: Millions of yen Change Notes Change Results Plan Results Revenue from 136,640 136,600 40 216,253 -79,612 Operations Department stores 49,732 49,100 632 119,288 -69,555 Supermarket 74,949 75,600 -651 83,115 -8,166 Other 11,958
Slide 13: FY2021 Business Results – Other
Ⅰ．FY2021 Business Results ― Other FY2021 FY2021 FY2020 Unit: Millions of yen Change Notes Change Results Plan Results Revenue from 89,497 92,700 -3,203 88,863 633 Operations Operating Income 3,526 2,600 926 2,876 650 Operating Income 1.4% - - 1.2% 0.2P ROA Depreciation 1,581 1,700 -119 1,560 21 EBIT
Slide 14: FY2022 Plan – Restructuring of main business
Ⅱ．FY2022 Plan ― Restructuring of main business March 2022 April 2022 Transportation Transportation Sports Leisure Leisure Food Parking Real Estate Leasing business Real Estate Trading company ･Retail Retail Retail Other Other Distribution Distribution Security ・ Insurance Other Other Trading company
Slide 15: FY2022 Plan – Anticipated revenue of main business
Ⅱ．FY2022 Plan ― Anticipated revenue of main business FY2022 Plan FY2021 Results Gentle recovery in demand Social restrictions with expected as no social Overall declaration of state of restrictions with declaration of state of emergency emergency Transportation Annual Annual Commuter passengers Rail
Slide 16: FY2022 Plan – Consolidated statement of income
Ⅱ．FY2022 Plan ― Consolidated statement of income FY2022 FY2021 Unit: Millions of yen Change Notes Plan Results Revenue from Transportation ＋13,436, Leisure ＋29,589, Real Estate -2,103, 558,000 506,023 51,977 Operations Retail Distribution ＋29,760, Other-11,597 Transportation ＋5,341, Leisure ＋1,382,
Slide 17: FY2022 Plan – Consolidated Cash Flow Plan
Ⅱ．FY2022 Plan ― Consolidated Cash Flow Plan FY2022 FY2021 Unit: Millions of yen Change Notes Plan Results EBITDA 86,200 80,302 5,898 Operating Income 33,000 24,732 8,268 Depreciation 53,200 55,570 -2,370 Interest-bearing debt balance 808,000 808,507 -507 Interest-bearing debt/EBITDA 9.4 10.1 -0.7P m
Slide 18: FY2022 Plan – Transportation
Ⅱ．FY2022 Plan ― Transportation FY2022 FY2021 Unit: Millions of yen Change Notes Plan Results Revenue from Operations 186,700 173,264 13,436 Railways 139,300 127,975 11,325 Other 47,400 45,289 2,111 Bus and taxi business ＋1,911, Freight business ＋268 Operating Income 17,100 11,759 5,341 Railways 16,0
Slide 19: FY2022 Plan – Leisure
Ⅱ．FY2022 Plan ― Leisure FY2022 FY2021 Unit: Millions of yen Change Notes Plan Results Revenue from Operations 137,900 108,311 29,589 Travel 101,400 74,955 26,445 Hotel 18,500 11,879 6,621 SKYTREE 8,100 5,829 2,271 Amusement parks and tourism -4 , Sports -1,551 （Decrease from restructuring of busines
Slide 20: FY2022 Plan – Real Estate
Ⅱ．FY2022 Plan ― Real Estate FY2022 FY2021 Unit: Millions of yen Change Notes Plan Results Revenue from Operations 60,100 62,203 -2,103 Leasing business 36,600 37,663 -1,063 SKYTREE TOWN 10,200 9,646 554 Subdivision business 13,300 14,893 -1,593 Operating Income 13,500 15,559 -2,059 Leasing business
Slide 21: FY2022 Plan – Retail Distribution
Ⅱ．FY2022 Plan ― Retail Distribution FY2022 FY2021 Unit: Millions of yen Change Notes Plan Results Revenue from Operations 166,400 136,640 29,760 Department stores 58,200 49,732 8,468 Supermarket 77,800 74,949 2,851 Other 30,400 11,958 18,442 Increase from restructuring of business Operating Income 1
Slide 22: FY2022 Plan – Other
Ⅱ．FY2022 Plan ― Other FY2022 FY2021 Unit: Millions of yen Change Notes Plan Results Revenue from Operations 77,900 89,497 -11,597 Decrease from restructuring of business Operating Income 2,600 3,526 -926 Operating Income ROA 1.0% 1.4% -0.4P Depreciation 1,500 1,581 -81 EBITDA 4,100 5,107 -1,007 Capi
Slide 23: Changes in business environment surrounding Tobu Group
III. Medium-Term Business Plan (Changes in Business Environment and Future Direction) Changes in business environment surrounding Tobu Group Changes in social structure Changes in individual awareness and lifestyles ✓Development of digital technology ✓Expanded use of online services ✓Expansion of sh
Slide 24: Policy for Medium-Term Business Plan
III. Medium-Term Business Plan (Changes in Business Environment and Future Direction) Policy for Medium-Term Business Plan ✓Promote business structure reform focused on controlling costs in response to changes in business environment and strengthen management structure to generate steady profits ✓Ex
Slide 25: Direction and vision of Tobu Group management
III. Medium-Term Business Plan (Changes in Business Environment and Future Direction) Direction and vision of Tobu Group management Tobu Railway strengths Favorable access Flat geography Living environment One of Japan’s connecting cities and rich natural with spacious floor leading tourist and subu
Slide 26: Priority strategies
III. Medium-Term Business Plan (Changes in Business Environment and Future Direction) Priority strategies 2022 2023 2024 2025 Strengthening New Sustainable of Management growth stage - development Structure Secure consolidated recurring income Shift to robust management structure capable of Next Med
Slide 27: Business structure reform in railway business
III. Medium-Term Business Plan (Business structure reform and restructuring of business promotion system) Business structure reform in railway business Automation utilizing digital technology/Promotion of proper scale and improvement of safety ✓Promotion of plan to expand one-man operation sections
Slide 28: Restructuring and review of operational structure at group companies
III. Medium-Term Business Plan (Business structure reform and restructuring of business promotion system) Enhancement of management structure through restructuring and review of operational structure at group companies Functional enhancement and increased efficiency through restructuring Structural
Slide 29: Enhancement of profitability based on digital customer contact points
III. Medium-Term Business Plan (Expansion of Profitability through New Business Model) Enhancement of profitability based on digital customer contact points Centralization of Group customer information in TOBU POINT Enhancement of marketing through utilization of Tobu Group customer data platform (T
Slide 30: Creation of nonresident/connected populations through railway line revitalization
III. Medium-Term Business Plan (Expansion of Profitability through New Business Model) Creation of nonresident/connected populations through railway line revitalization Maximization of customer attraction Development of MaaS to uncover Improvement of appeal of in Nikko/Kinugawa area demand SKYTREE T
Slide 31: Increasing permanent residents and enhancing railway network
III. Medium-Term Business Plan (Expansion of Profitability through New Business Model) Promotion of businesses aiming to increase permanent residents and enhancement of railway network through railway line development Promotion of development of hub Development of detached houses/rental Development
Slide 32: Cultivation of profit-making non-railway businesses
III. Medium-Term Business Plan (Expansion of Profitability through New Business Model) Cultivation/strengthening of profit-making non-railway businesses Town development offering comfortable living for 3 generations in Further consideration of collaboration with other industries developing major bas
Slide 33: Businesses That Address Social Challenges as Needs
III. Medium-Term Business Plan (Expansion of Revenue by Promoting Businesses That Address Social Challenges as Needs) Aiming for sustainable development of Tobu Group and local communities Implementation of TOBU POINT child Creation of comfortable living by Support for moving to raising support and
Slide 34: Brand development through reduction of environmental impact
III. Medium-Term Business Plan (Expansion of Revenue by Promoting Businesses That Address Social Challenges as Needs) Brand development and revenue production through reduction of environmental impact Nikko area initiatives for establishing international eco resort brand Enhancement Decarbonization
Slide 35: Improvement of diverse employee skills and capabilities
III. Medium-Term Business Plan (Expansion of Revenue by Promoting Businesses That Address Social Challenges as Needs) Improvement of diverse employee skills and capabilities Promotion of diversity Cooperation with startups ■TOBU Open Innovation Program ✓Promotion and training of human resources with
Slide 36: Indicator Target
III. Medium-Term Business Plan Target Indicator Target Interest-bearing debt balance Around 800 billion yen at end of FY2024 Interest-bearing debt/ 7x range at end of FY2024, reaching 6x EBITDA multiple range ASAP Aim to return dividends of 40 yen per share Shareholder return ASAP, and consider retu
Slide 37: Anticipated Business Environment and Main Business Revenue
[Reference Material] Anticipated Business Environment and Main Business Revenue [Anticipated business environment*] ✓Impact of COVID-19 will gradually subside, restrictions on movement will be eased to an extent, and consumer behavior will gradually recover ✓Business commutation demand and other rai
Slide 38: Expenditures based on anticipated business environment
[Reference Material] Expenditures, etc. based on anticipated business environment※ Unit:100Millions of yen FY2021 FY2022 FY2023 FY2024 Results Plan Plan Plan Revenue from Operations ５，０６０ ５，５８０ ５，８１５ ６，０４２ Operating Income ２４７ ３３０ ４５８ ５３８ Recurring Income ２７４ ２９０ ４２０ ５００ Profit Attributable to １３５ １
Slide 39: Operating revenue plan by segment for FY2022-FY2024
[Reference Material] Operating revenue plan by segment for FY2022-FY2024 Segment Unit:100Millions of yen FY2022 FY2023 FY2024 Plan Plan Plan Transportation 1,867 1,967 1,972 Railways 1,393 1,467 1,464 Leisure 1,379 1,454 1,600 Travel 1,014 1,035 1,122 Hotel 185 218 257 SKYTREE 81 95 112 Real Estate
Slide 40: Operating Income plan by segment for FY2022-FY2024
[Reference Material] Operating Income plan by segment for FY2022-FY2024 Segment Unit:100Millions of yen FY2022 FY2023 FY2024 Plan Plan Plan Transportation 171 259 274 Railways 160 237 249 Leisure 2 36 86 Travel 10 13 18 Hotel ▲29 ▲6 23 SKYTREE 11 17 31 Real Estate 135 131 141 Leasing business 96 102
Slide 41: 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