Odakyu Electric Railway Co., Ltd. · TSE:9007
Odakyu Electric Railway — FY2020 Earnings Presentation
49 slides from Odakyu Electric Railway's earnings presentation, May 24, 2021
Slide 1: Information for Investors: Results for the FY2020
Information for Investors Results for the FY2020 New Management Vision UPDATE Odakyu —Becoming a Community-Based Value Creation Company May 24, 2021
Slide 2: Actual Performance Overview for FY2020
Actual Performance Overview for FY2020 Copyright 2021 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.
Slide 3: Actual performance overview for FY2020
Actual performance overview for FY2020 FY 2019 FY 2020 Forecast Millions of yen at Mar. 2021 (actual) (actual) Change Change Revenue from operations 534,132 385,978 △ 148,154 △ 27.7％ 384,100 + 1,878 + 0.5％ Operating income 41,103 △ 24,190 △ 65,294 ー △ 28,900 ＋ 4,709 ー Ordinary income 38,299 △ 31,223
Slide 4: Actual performance overview for FY2020 (compared with FY2019)
Actual performance overview for FY2020 (compared with FY2019) Revenue from operations （Unit：Millions of yen ） △ 56,944 (–) Decrease in + 9,399 number of users due △ 48,878 △ 7,606 (–) Decrease in to people staying at (–) Decrease in real home number of users due to estate unit △ 44,124 people stayin
Slide 5: Monthly trends of major business for FY2020
Monthly trends of major business for FY2020 Transportation * In September and October, rebound from the impact of the advanced purchasing （Number of Passengers on Odakyu Electric Railway） of commuter passes in the same period of the previous fiscal year that accompanied the consumption tax hike (Uni
Slide 6: Monthly trends of major business for FY2020
Monthly trends of major business for FY2020 *１ Hyatt Regency Tokyo Hotels（Occupancy rate） *２ Hotel de Yama/ Hakone Highland Hotel/ Hotel Hatsuhana 100.0 （Unit：％） ＨＲＴ※１ HRT*1 80.0 Hakone three 箱根３ホテル※２ hotels*2 60.0 40.0 40.1 20.0 12.8 0.0 2月Feb 3月Mar 4月Apr 5月 May Jun 6月 Jul 7月 Aug 9月 8月 Sep 10月 Oct
Slide 7: Review of Previous Plan
Review of Previous Plan Copyright 2021 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.
Slide 8: Review of the Long-Term Vision 2020
Review of the Long-Term Vision 2020 • The Long-Term Vision 2020 concluded six years after it was launched in FY2015 • We promoted initiatives that contributed to maximizing Group revenue, and implemented digital transformation (DX) measures that contributed to business growth, including MaaS Long-Te
Slide 9: Review of the Long-Term Vision 2020
Review of the Long-Term Vision 2020 • At the launch of the Long-Term Vision 2020, the targets for FY2020 were: Revenue from operations ¥600 billion, EBITDA ¥100 billion, and interest-bearing debt/EBITDA ratio 7.0 times • Until the impact of the COVID-19 outbreak, EBITDA remained largely in line with
Slide 10: New Management Vision
New Management Vision Copyright 2021 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.
Slide 11: Our History and the Next 100 Years
Our History and the Next 100 Years Development together with local communities Opened in 1927 The Odawara Line opened in a year and a half during the period of confusion directly after the Great Kanto earthquake of 1923 The line supported the movement of people migrating from the city center to the
Slide 12: UPDATE Odakyu: New Management Vision
New Management Vision UPDATE Odakyu —Becoming a Community-Based Value Creation Company In order to grow together with communities along the Odakyu Line and in areas where we operate businesses, we will evolve into a company that creates new value in communities, such as customer experience and lower
Slide 13: New Management Vision: Becoming a Community-Based Value Creation Company
New Management Vision We will make management decisions based on the three pillars of “society and community,” “economy,” and “environment” and sharply differentiate our businesses. We will update our business model to become a company that creates community-based value for the next 100 years. <<Soc
Slide 14: Positioning of the Management Vision in Our Business Planning Structure
Positioning of the Management Vision in Our Business Planning Structure Group’s Management Principle Group’s Management Principle The Odakyu Group will contribute to helping customers create “irreplaceable times” and “rich and comfortable lifestyles.” Group Action Guidelines In order to realize our
Slide 15: Reform Initiatives: Structural Reform and Rapid Growth
Overall Policies “UPDATE Odakyu—Becoming a Community Value Creation Company” ■Reform Initiatives • We will establish the first three years of the six-year period ending in FY2026 as the period of structural reform and the last three years as the period of rapid growth • In the period of structural r
Slide 16: Three Management Issues Aimed at Reform
Three Management Issues Aimed at Reform With a view to the period of rapid growth, we will promote the recovery of profitability and control of interest-bearing debt to improve financial soundness and rebuild our business portfolio Recover profitability Control interest- Rebuild our business bearing
Slide 17: Three Management Issues Aimed at Reform
Three Management Issues Aimed at Reform Recover profitability Revenue from our railway business • Expect revenue to recover to approximately 85% of the normal level and aim to reach a level of over 85% through initiatives to increase revenue Reduce costs • Carry out labor-saving measures in our
Slide 18: Three Concepts to Reform Business
Three Concepts to Reform Business In all businesses, we will thoroughly apply the three concepts of “DX,” “co- creation,” and “localization” to promote reformation of the way we think about our operations and services. In addition to this, we will grow our existing businesses and create new business
Slide 19: Future Fields
Future Fields The Odakyu Group will update the methods it uses to realize the value it aims to provide to communities and customers in the future, in light of the accelerating pace of changes in the environment due to the COVID-19 pandemic, including the progress of digitalization Mobility x Securit
Slide 20: Specific Initiatives in the Medium-Term Management Plan
Specific Initiatives in the Medium-Term Management Plan Copyright 2021 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.
Slide 21: Positioning of the Current Medium-Term Management Plan
Positioning of the Current Medium-Term Management Plan • In this plan, we prioritize the recovery of profitability and financial soundness, while pursuing initiatives related to the sustainable future growth of Odakyu, such as transforming physical businesses with digital technology • We will improv
Slide 22: Mobility x Security and Comfort
Mobility x Security and Comfort Creating a new mobility life for communities While making universal value in the form of security and comfort accumulated over 90 years an unshakable foundation, we will apply future technologies to create a next-generation mobility life for communities that will enab
Slide 23: Mobility x Security and Comfort: Environmental Awareness and Policies
“Mobility × Security and Comfort” Environmental Awareness and Policies Decreased Increased Severity Permeation Widespread adoption Mobility Impaired Opportunities of of of People for Natural Disasters Digital Lifestyles Teleworking Going Out Approach to “Mobility X Security and Comfort” Based on Cha
Slide 24: Build sustainable transportation infrastructure and create new value
Build sustainable transportation infrastructure Policy 1 and create new value While creating a business model that balances safety and profitability, we will create new value in response to changes to the business environment Maintain and Improve Safety • Install platform doors at stations with over
Slide 25: Establish a new business model utilizing digital technology
Establish a new business model utilizing Policy 2 digital technology We will create community-based value centered on transportation services by shifting customer contact points from the real world, starting with stations, to the digital world, starting with smartphones and other devices, as well as
Slide 26: Community Development x Attachment
Community Development x Attachment Creating a new narrative for communities We will create occupational, residential, commercial, academic, and recreational settings that take advantage of the individuality and characteristics of communities and foster attachment to and pride in communities together
Slide 27: Community Development x Attachment: Environmental Awareness and Policies
“Community Development x Attachment” Environmental Awareness and Policies Changing Decreased Weakening of relationship Recycling-oriented opportunities local between urban and society for going out communities suburban areas Approach to “Community Development x Attachment” Based on Changes to the Bu
Slide 28: Pursue development with a firm understanding of local community characteristics
Pursue development with a firm understanding of Policy 1 local community characteristics Promote development that integrates numerous functions that apply to occupation, residence, commerce, education, and recreation in all communities, and carry out community development that responds flexibly to p
Slide 29: Create opportunities for development and expand profitability
Create opportunities for development and expand Policy 2 profitability by enhancing business operations Increase opportunities for development by diversifying development and management methods in line with changing lifestyles, in addition to conventional in-house land development, and expand earnin
Slide 30: Create new community development businesses
Policy 3 Create new community development businesses Multilaterally promote new community development businesses that resolve issues in local communities through technology and other methods Area management Circular economy Business Reduce the Make business Improve burden on management safety and dr
Slide 31: Living x Enjoyment
Living x Enjoyment Producing emotionally moving moments in uneventful everyday life We will produce emotionally moving moments that go beyond a sense of security by speedily identifying changing trends and diversifying customer wants and by co-creating together with various partners times and spaces
Slide 32: Living x Enjoyment: Environmental Awareness and Policies
“Living x Enjoyment” Environmental Awareness and Policies Decreased Permeation EC and online Experience-based opportunities of content consumption for going out Digital Lifestyles Approach to “Living x Enjoyment” Based on Changes to the Business Environment • While the value that can only be experie
Slide 33: Provide powerful real content
Policy 1 Provide powerful real content Create new content and reinforce relationship of that content with community initiatives to attract visitors and create a bustling community Enhance railway content Create sports content Promote sports co-creation strategy (OSEC100) Aim to acquire generations
Slide 34: Create customer value by building a digital platform
Policy 2 Create customer value by building a digital platform Understand diversifying customer needs by reinforcing digital marketing and provide services that integrate the real and digital worlds Services that integrate real and digital ■Community-based service platform “ONE (o-ne)” Allows for the
Slide 35: Tourism x Experiences
Tourism x Experiences Providing special memories from experiences found nowhere else We will contribute to the development of Japan, regions, and communities by discovering ways for people to spend time and enjoy themselves unique to specific localities together with local residents and assisting in
Slide 36: Tourism x Experiences: Environmental Awareness and Policies
“Tourism x Experiences” Environmental Awareness and Policies Loss of demand Increase in Number of Experience-based Micro-tourism from inbound tourists domestic travel visitors consumption Approach to “Tourism x Experiences” Based on Changes to the Business Environment • Robust demand for domestic tr
Slide 37: Create new tourism experiences that draw on local characteristics
Create new tourism experiences that draw on local Policy 1 characteristics Promote the development of new demand in the Hakone, Enoshima, and Oyama areas through various value proposals and strive to create new tourism experiences Provide New Experience-Based Value to Tourist Town Development That I
Slide 38: Refine the tourism business in anticipation of the future
Refine the tourism business in anticipation of the Policy 2 future Promote digital transformation (DX) in tourist settings to enhance convenience for customers. At the same time, move forward with measures to create demand in anticipation of the recovery period for demand from inbound tourists Initi
Slide 39: Excitement x Innovation
Excitement x Innovation Providing excitement to customers at all times Each employee will make excitement the source of ideas by unleashing their independence, creativity, and enthusiasm. To deliver new value to customers, we will at all times embrace change and continue to challenge the unknown. Co
Slide 40: Excitement x Innovation: Environmental Awareness and Policies
“Excitement x Innovation” Environmental Awareness and Policies Increased awareness of Mobility of human Autonomous career Work style diversification Diversity social contribution resources development Approach to “Excitement x Innovation” Based on Changes to the Business Environment • Promote the de
Slide 41: Implement human resource strategies to achieve our management vision
Implement human resource strategies to achieve our Policy 1 management vision Transform our systems, culture, and values to develop “value-creating human resources” who will create value for local communities in the future Establish Human Resource Management Policies • By establishing and clarifying
Slide 42: Business Performance Forecasts for FY2021 Overview
Business Performance Forecasts for FY2021 Overview Copyright 2021 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.
Slide 43: Business performance forecasts for FY2021
Business performance forecasts for FY2021 ■The expected recovery of revenue from operations for each segment in this business performance forecast is described below <Revenue from operations is expected to recover compared to normal level> Results of Railway Business of Odakyu Electric Railway Gra
Slide 44: Business performance forecasts for FY2021 (overview)
Business performance forecasts for FY2021 (overview) FY2020 FY2021 FY2021(forecast) 営業収益 Millions of yen (actual) (forecast) Prior to accounting の修正 standard revision Impact of accounting standard Change revision Revenue from operations 385,978 395,200 + 9,221 + 2.4％ 475,200 △ 80,000 △ 16.8％ Operati
Slide 45: Business performance forecasts for FY2021 (compared with FY2020)
Business performance forecasts for FY2021 (compared with FY2020) Revenue from *: Changes in each segment are comparisons between actual performance in operations （Unit：Millions of yen ） FY2020 and the forecast for FY2021 before the adoption of standards such as “Accounting Standard for Revenue Recog
Slide 46: Business performance forecasts for FY2021 (Number of Passengers)
Business performance forecasts for FY2021 （Number of Passengers ） Work （unit：thousands） 通勤定期 commuters 通学定期 School commuters 定期外 Non-commuters total number of passengers 2018 342,359 129,625 294,671 766,655 +2.0% △1.0% △2.4% △0.2% 2019 349,361 128,377 287,589 765,327 △55.4% △32.8% △31.4% △21.4% 2020
Slide 47: Dividend Policy
Dividend Policy The Company’s basic policy for returning profits to shareholders is to 営業収益 Basic policy maintain stable dividend payment as a result of improved performance with の修正 a dividend payout ratio of approx.30%. Despite the decision to forego payment of the interim dividend due to unclear
Slide 48: Initiatives for Reinforcing Governance
Initiatives for Reinforcing Governance Ratio of Outside Directors Reinforce the supervisory function of the Board of Directors by 営業収益 increasing the ratio of outside directors to one in three の修正 June 2021 Shareholders' FY2015 FY2020 Meeting Candidates Board of Directors 15 13 12 Outside 3 4 4 dire
Slide 49: Odakyu Electric Railway Co., Ltd. Remarks
営業収益 の修正 Odakyu Electric Railway Co., Ltd. Remarks Figures about business plans, future forecasts and strategies other than historical facts are forward-looking statements reflecting management’s view. Since the forward-looking statements are based on information available at the time of disclosure,
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