Kyushu Railway Company · TSE:9142
Kyushu Railway — Q1 FY23.3 Earnings Presentation
29 slides from Kyushu Railway's earnings presentation, Aug 2, 2022
Slide 1: FY23.3 Financial Results Overview, First Quarter
FY23.3 Financial Results Overview, First Quarter August 2, 2022
Slide 2: Contents
Contents Ⅰ Financial Results for the First Three-Months of FY23.3 3 Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for 7 FY23.3 Ⅲ Status of Segments 12 Ⅳ Progress on the Three Key Strategies of the Medium-Term 19 Business Plan 2
Slide 3: Financial Results for the First Three-Months of FY23.3
Ⅰ Financial Results for the First Three-Months of FY23.3 3
Slide 4: Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2022
Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2022 （\bil） 3 months ended 3 months ended YoY June, 30 2021 June, 30 2022 Operating revenue Operating revenue 72.0 90.4 18.3 125.5% Although COVID-19 continued to affect performance, Operating income (1.3) 7.8 9.2 - revenue
Slide 5: Results for the First Three Months of FY23.3 (by segment)
Results for the First Three Months of FY23.3 (by segment) (Shown According to New Segments) （\bil） 3 months ended 3 months ended YoY Major factors June, 30 2021 June, 30 2022 Operating revenue 72.0 90.4 18.3 125.5% Transportation 23.0 31.4 8.3 136.4% Railway Business (non-consolidated) 22.8 31.1 8.3
Slide 6: Results for the First Three Months of FY23.3 (non-consolidated)
Results for the First Three Months of FY23.3 (non-consolidated) (\bil) 3 months ended 3 months ended YoY Major factors June, 30 2021 June, 30 2022 Operating revenue 40.5 53.4 12.9 132.0% Railway transportation 19.6 27.5 7.9 140.3% Increase due to moderate recovery in demand revenues Shinkansen 5.3 9
Slide 7: Full-Year Performance Forecasts and Dividend Forecasts for FY23.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY23.3 7
Slide 8: Consolidated Financial Forecast Highlights for FY23.3
Consolidated Financial Forecast Highlights for FY23.3 （\bil） Results Forecasts Operating revenue YoY FY22.3 FY23.3 Despite the impact of COVID-19 and a downturn in the sale of properties, we expect operating revenues to Operating revenue 329.5 381.4 51.8 115.7% increase due to gradual demand recover
Slide 9: Consolidated Financial Forecasts for FY23.3 (by segment)
Consolidated Financial Forecasts for FY23.3 (by segment) (Shown According to New Segments) (\bil) Results Forecasts YoY Major factors FY22.3 FY23.3 Operating revenue 329.5 381.4 51.8 115.7% Transportation 104.2 139.2 34.9 133.5% Increase due to moderate recovery in demand in railway business Railway
Slide 10: Non-consolidated Financial Forecasts for FY23.3
Non-consolidated Financial Forecasts for FY23.3 (\bil) Results Forecasts YoY Major factors FY22.3 FY23.3 Operating revenue 179.9 210.5 30.5 117.0% Railway transportation 89.3 122.6 33.2 137.2% Increase due to moderate recovery in demand revenues Shinkansen 27.4 43.8 16.3 159.5% Conventional Lines 61
Slide 11: FY23.3 dividend forecasts
FY23.3 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 12: Status of Segments
Il Status of Segments 12
Slide 13: Status of Segment Revenues
Status of Segment Revenues We continue to anticipate a gradual recovery in mobility demand and personal consumption due to the combination of efforts to suppress infections and consumer activity. In Q1, performance was robust, centered on the railway business. However, the pace of recovery is no
Slide 14: Transportation Segment
Transportation Segment The number of COVID-19 infections remained high in Q1. However, absent any strict restrictions on behavior, demand recovered more quickly than we had anticipated. BPR in the railway business was favorable, and we expect to reduce fixed costs for the full year by ¥14.0 bill
Slide 15: Railway business (transportation data)
Railway business (transportation data) Railway Transportation Revenues (\bil) 3 months ended 3 months ended YoY Major factors June, 30 2021 June, 30 2022 Total 19.6 27.5 7.9 140.3% Commuter pass 7.2 7.4 0.2 103.5% Non-commuter pass 12.4 20.1 7.6 161.7% Cargo 0.0 0.0 0.0 366.5% Shinkansen 5.3 9.0 3.6
Slide 16: Real Estate and Hotels Segment: Real estate leasing business
Real Estate and Hotels Segment: Real estate leasing business Station building tenant sales showed a modest recovery in Q1, although COVID-19 continues to affect performance. In office buildings and rental apartments, performance was affected by the sale of properties to a private REIT in Q4 FY22
Slide 17: Real Estate and Hotels Segment: Real estate sales business
Real Estate and Hotels Segment: Real estate sales business In Q1, sales of condominiums were down year on year, but revenues and profit increased due to the sale to a third party of a Company-owned office building (Shinkawa East Building). 【Results】 【Forecasts】 （\bil） （\bil） 3 months 3 months Resu
Slide 18: Real Estate and Hotels Segment: Hotel business
Real Estate and Hotels Segment: Hotel business In Q1, the government postponed its nationwide tourism support program due to the resurgence of COVID-19. However, prefectural discount programs, which also cover neighboring prefectures, continued. Although occupancy rates were up compared with Q4
Slide 19: Progress on the Three Key Strategies of the Medium-Term Business Plan
Ⅳ Progress on the Three Key Strategies of the Medium-Term Business Plan 19
Slide 20: 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 21: Reduce Costs in the Railway Business through BPR
Key strategy❶ Completing business structural reforms: Reduce Costs in the Railway Business through BPR* ＊Business Process Re-engineering We expect to make steady progress on an ¥18.0 billion cost reduction in the current year, centering on BPR-related cost reductions in the railway business. Progres
Slide 22: Improving convenience and revising tickets
Securing Revenues in the Railway Business: Improving convenience and revising tickets Create added value by introducing the EX Service, and revise the Shinkansen rate structure Foster ongoing increases in convenience and service through proactive DX and other measures Introduction of new payment
Slide 23: Retail and Restaurant business
Key strategy❶ Completing business structural reforms: Retail and Restaurant business In light of the COVID-19 situation, we have reviewed our store opening strategy. We are working to improve profitability and enhance competitiveness by strengthening existing brands and taking on the challenge of ne
Slide 24: City-Building in the Western Kyushu Area
Key strategy❷ Creating a model for building cities that promote well-being: City-Building in the Western Kyushu Area As the date for opening the Nishi-Kyushu Shinkansen nears, we are starting promotions that involve the local community in an effort to maximize the impact of the opening. Overview Nis
Slide 25: Promoting MaaS
Key strategy❷ Creating a model for building cities that promote well-being: Promoting MaaS Following our efforts in the Saga area, we will introduce a MaaS initiative in the Nagasaki area in August 2022. In conjunction with the opening of the Nishi-Kyushu Shinkansen, we aim to provide seamless t
Slide 26: Transitioning to BRT for the Hitahikosan Line
Key strategy❷ Creating a model for building cities that promote well-being: Transitioning to BRT for the Hitahikosan Line In summer of 2023, BRT service is scheduled to commence on the Soeda–Yoake/Hita segment, which a disaster made impassible in July 2017. Through cooperation with local governm
Slide 27: Damage to the Hisatsu Line due to Heavy Rains in July 2020
Damage to the Hisatsu Line due to Heavy Rains in July 2020 We participated in the JR Hisatsu Line Review Conference held by the Ministry of Land, Infrastructure, Transport and Tourism and Kumamoto Prefecture concerning policy for restoring the Hisatsu Line. The policy on restoration is being discuss
Slide 28: ESG Initiatives
ESG Initiatives We are promoting ESG initiatives based on the materiality we established to accomplish the 2030 Long- Term Vision. As one non-financial KPI under the medium-term business plan, we have decided to link an employee awareness survey to director compensation. E a decarbonized Realiza
Slide 29: 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
Kyushu Railway Company — Q1 FY23.3 Earnings Presentation on 6ix