Kyushu Railway Company · TSE:9142
Kyushu Railway — Q1 FY22.3 Earnings Presentation
27 slides from Kyushu Railway's earnings presentation, Aug 3, 2021
Slide 1: FY22.3 Financial Results Overview, First Quarter
FY22.3 Financial Results Overview, First Quarter August 3, 2021
Slide 2: Contents
Contents Ⅰ Financial results for the First Three-Months of FY22.3, 3 Full-Year Performance Forecasts, and Dividend Forecasts Ⅱ Status of Segments 11 Ⅲ Status of Initiatives to Address Issues Faced by the Group 19 2
Slide 3: Financial results for the First Three-Months of FY22.3, Forecasts, and Dividend Forecasts
Ⅰ Financial results for the First Three-Months of FY22.3, Full-Year Performance Forecasts, and Dividend Forecasts 3
Slide 4: Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2021
Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2021 (Year on Year) Operating revenue （\bil） Despite the continued influence of the COVID-19 3 months ended 3 months ended June, 30 2020 June, 30 2021 YoY infection and the change of JR Kyushu Drug Eleven to an equity-method
Slide 5: Results for the First Three Months of FY22.3 (by segment)
Results for the First Three Months of FY22.3 (by segment) （\bil） 3 months ended 3 months ended YoY Major factors June, 30 2020 June, 30 2021 Operating revenue 61.8 72.0 10.2 116.6% Transportation 17.3 24.1 6.8 139.7% Railway Business (non-consolidated) 16.2 22.8 6.5 140.6% Increase due to moderate r
Slide 6: Results for the First Three Months of FY22.3 (non-consolidated)
Results for the First Three Months of FY22.3 (non-consolidated) (\bil) 3 months ended 3 months ended YoY Major Factors June 30, 2020 June 30, 2021 Operating revenue 24.1 40.5 16.3 167.6% Railway transportation 13.2 19.6 6.4 149.0% Increase due to moderate recovery in demand Shinkansen 3.2 5.3 2.0 16
Slide 7: Consolidated Financial Highlights for FY22.3
Consolidated Financial Highlights for FY22.3 （\bil） Operating revenue Results Forecasts YoY FY21.3 FY22.3 Increase in revenue due to moderate recovery in demand in the Transportation Operating revenue 293.9 344.2 50.2 117.1% Segment and other segments Operating income (22.8) 10.6 33.4 - Ordinary inc
Slide 8: Consolidated Financial Forecasts for FY22.3 (by segment)
Consolidated Financial Forecasts for FY22.3(by segment) (\bil) Results Forecasts YoY Major factors FY21.3 FY22.3 Operating revenue 293.9 344.2 50.2 117.1% Transportation 95.2 127.5 32.2 133.8% Increase due to moderate recovery in demand in railway business Railway Business (non-consolidated) 89.7 12
Slide 9: Non-consolidated Financial Forecasts for FY22.3
Non-consolidated Financial Forecasts for FY22.3 (\bil) Results Forecasts YoY Major factors FY21.3 FY22.3 Operating revenue 144.7 177.2 32.4 122.4% Railway transportation 76.3 106.0 29.6 138.9% Increase due to moderate recovery in demand revenues Shinkansen 22.4 36.0 13.5 160.1% Conventional Lines 53
Slide 10: FY22.3 dividend forecasts
FY22.3 dividend forecasts Shareholder return policy The Company views the return of profits to shareholders as one of its most important management tasks. Accordingly, the Company believes it is important to provide stable shareholder returns over the long term. (Policy up to FY22.3) ・Aim for a di
Slide 11: Status of Segments
Ⅱ Status of Segments 11
Slide 12: Status of segments (1)
Status of segments (1) Customer usage weakened because customers refrained from going out/moving around due to the declaration of a state of emergency, etc. Currently, there are signs of a gradual recovery in demand in each business following the lifting of the state of emergency, etc. Transportatio
Slide 13: Status of segments (2)
Status of segments (2) Status of state of emergency, etc., in Kyushu Declaration of state of emergency: Fukuoka Prefecture (May 12 to June 20) Infection prevention and other priority measures: Fukuoka Prefecture (June 21 to July 11) Kumamoto Prefecture (May 16 to June 13) Requests from local governm
Slide 14: Transportation Segment
Transportation Segment 【Results】 【Forecasts】 （\bil） （\bil） 3 months ended 3 months ended Results Forecasts YoY YoY June, 30 2020 June, 30 2021 FY21.3 FY22.3 Operating revenue 17.3 24.1 6.8 139.7% 95.2 127.5 32.2 133.8% Railway Business (non-consolidated) 16.2 22.8 6.5 140.6% 89.7 120.4 30.6 134.1% R
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, 2020 June 30, 2021 Total 13.2 19.6 6.4 149.0% Commuter pass 6.1 7.2 1.1 118.0% Non-commuter pass 7.0 12.4 5.3 175.8% Shinkansen 3.2 5.3 2.0 164.2% Increase due to gr
Slide 16: Real Estate and Hotels Segment (1)
Real Estate and Hotels Segment (1) Real estate leasing business 【Results】 （\bil） 【Forecasts】 （\bil） 3 months ended 3 months ended Results Forecasts YoY YoY June, 30 2020 June, 30 2021 FY21.3 FY22.3 Operating revenue 10.2 13.9 3.7 136.5% 49.7 59.4 9.6 119.4% Operating income 1.6 3.7 2.0 224.0% 12.0 1
Slide 17: Real Estate and Hotels Segment (2)
Real Estate and Hotels Segment (2) Condominium sales business 【Results】 （\bil） 【Forecasts】 （\bil） 3 months ended 3 months ended Results Forecasts YoY YoY June, 30 2020 June, 30 2021 FY21.3 FY22.3 Operating revenue 0.4 9.6 9.2 - 23.5 23.0 (0.5) 97.6% Operating income (0.2) 1.5 1.7 - 2.6 2.2 (0.4) 83.
Slide 18: Retail and Restaurant segment
Retail and Restaurant segment 【Results】 【Forecasts】 （\bil） （\bil） 3 months ended 3 months ended Results Forecasts YoY YoY June, 30 2020 June, 30 2021 FY21.3 FY22.3 Operating revenue 19.6 9.4 (10.1) 48.2% 51.4 47.3 (4.1) 91.9% Operating income (1.5) (0.8) 0.6 - (2.5) 0.5 3.0 - EBITDA (1.0) (0.5) 0.5
Slide 19: Status of Initiatives to Address Issues Faced by the Group
Ⅲ Status of Initiatives to Address Issues Faced by the Group 19
Slide 20: Status of major initiatives in the current fiscal year
Status of major initiatives in the current fiscal year Issues revealed by Current courses of action Major items to be implemented COVID-19 Rigorous initiatives for safety, which is the foundation of Business management with all of our businesses the highest priority on safety Safety/services that re
Slide 21: Maximizing opening effect of Kumamoto Station area development
❶Maximizing opening effect of Kumamoto Station area development Maximizing opening effect by strengthening collaboration between railways and urban districts, while implementing environmental burden reduction measures and infection prevention measures Opening effect (Comparison with period before op
Slide 22: Railway Business Cost Structure Reform
❷Railway Business Cost Structure Reform In the current fiscal year, urgent control measures will continue to be the main initiative. To reduce fixed expenses from the next fiscal year, we will advance BPR initiatives. We will aim to reduce costs by ¥14.0 billion, about 10% of railway business expens
Slide 23: Reevaluating discount tickets, advancing shift to on-line sales
➌Reevaluating discount tickets, advancing shift to on-line sales We will continue to reevaluate discount tickets, strengthen yield management through the shift to on-line sales, and work to secure the top line by reevaluating limited-express surcharges. Items to be implemented Discount ticket on-lin
Slide 24: Improving Profits in the Hotel Business
❹Improving Profits in the Hotel Business We will continue the cost reduction initiatives that we have been implementing since the previous fiscal year, and we will advance initiatives to enhance customer drawing power so that we do not miss a recovery in demand. Cost reduction initiatives We will co
Slide 25: Expanding Business Fields through M&A
➎Expanding Business Fields through M&A To expand business fields that do not depend on the flow of people and to realize further growth in the Group’s restaurant business, we acquired Nurubon as a new subsidiary. This barbecue restaurant is highly popular, centered on Fukuoka. Overview of newly esta
Slide 26: Strengthening Cooperation in Transportation Services through MaaS
➏Strengthening Cooperation in Transportation Services through MaaS We will work to strengthen cooperation with other transportation companies, and will consider expanding areas and services for the period after COVID-19. Joint press conference with Illustration of digital ticket Strengthening cooper
Slide 27: Forward-Looking Statements
Forward-Looking Statements These materials contain forward-looking statements concerning business forecasts, targets, etc. of the JR Kyushu Group. The Company decided on these forward-looking statements based on the available information, as well as Company estimates and assumptions, at the time the
Kyushu Railway Company — Q1 FY22.3 Earnings Presentation on 6ix