Keihan Holdings Co.,Ltd. · TSE:9045
Keihan Holdings Co.,Ltd — H1 FY2020 Earnings Presentation
36 slides from Keihan Holdings Co.,Ltd's earnings presentation, Nov 19, 2019
Slide 1: First Half of FY2020 Financial Results Presentation
First Half of FY2020 (Ended September 30, 2019) Financial Results Presentation November 19, 2019 Keihan Holdings Co., Ltd. (Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.co.jp/)
Slide 2: Table of Contents
Table of Contents Summary of Consolidated Financial Results and … 2 Forecasts Progress Status of Medium-Term Management Plan … 4 “Create Living, Community, and Excitement” Overview of the First Half of FY2020 Financial Results … 19 FY2020 Forecasts … 30 ◆Notes on forecasts◆ Descriptions of b
Slide 3: Summary of Consolidated Financial Results and Forecasts
Summary of Consolidated Financial Results and Forecasts 2
Slide 4: Summary of Consolidated Financial Results and Forecasts
Summary of Consolidated Financial Results and Forecasts (Millions of yen) 1H FY2020 1H FY2019 1H FY2020 1H FY2020 Results Change (projections Change Results Results released in May) Operating revenue 12,362 5,809 165,209 152,846 159,000 (8.1%) (3.6%) Operating income 4,954 4,469 21,969 17,014 17,500
Slide 5: Progress Status of Keihan Group's Medium-Term Management Plan
Progress Status of Keihan Group’s Medium-Term Management Plan “Create Living, Community, and Excitement” 4
Slide 6: Overall structure of the long-term strategic concept
Overall structure of the long-term strategic concept Keihan Group’s long-term Management vision strategic concept “Be the beautiful Keihan areas and the global Keihan group” Long-term management strategy Main strategies Redevelop Medium-term Keihan areas management plan 沿線再耕 Co-create tourism oppo
Slide 7: Overview of the long-term management strategy
Overview of the long-term management strategy The main strategies carried out by the Keihan Group toward FY2027 Theme Basic policy Priority measures Redevelop Make the areas along the Keihan Railway Regain the glory of Osaka’s east to west lines beautiful through urban revitalization axis and carry
Slide 8: BIOSTYLE and GOOD NATURE STATION
Create relatable contents BIOSTYLE-Aim for Keihan as First Choice- Hotel (4F–9F) Opening of the GOOD NATURE STATION • The guest rooms feature an BIOSTYLE is a new lifestyle proposed by the Keihan interior focused on natural wood, as well as lights that automatically Group, aimed at achieving a hea
Slide 9: Growth pole development in Yodoyabashi
Redevelop Keihan areas Regaining the glory of Osaka’s east to west axis Growth pole development in Yodoyabashi Keihan Midosuji Building and Nittochi Yodoyabashi Building (owned by NIPPON TOCHI-TATEMONO Co., Ltd.) will be jointly reconstructed after integration of the premises. It will be a magnifice
Slide 10: Growth pole development in the areas along the Keihan Railway lines
Redevelop Growth pole development in the areas Keihan areas along the Keihan Railway lines USJ Nakanoshima Community building starting from railway stations Kyobashi Yumeshima (Potential Yodoyabashi Temmabashi Hirakatashi Chushojima Sanjo Demachiyanagi site for IR) Osaka’s east to west axis Major gr
Slide 11: Strengthen tourism and inbound business mainly in Kyoto
Co-create Strengthen tourism and tourism opportunity inbound business mainly in Kyoto Encouraging visitors to tour around the Mt. Hiei and Lake Biwa area Tourism MaaS demonstration experiment By examining how MaaS can contribute to improving convenience Eizan Cable Car of intraregional transportat
Slide 12: Initiatives in the transportation business
Initiatives in the transportation business Transition of the passenger transportation Getting ready to welcome inbound tourists revenue and inbound revenue ◆ Establishment of a tourist information center at (Index) * Inbound revenue is on the right axis. (JPY100 million) 130 20 Kitahama Station インバウ
Slide 13: Enhancing transportation network
Initiatives in the transportation business Enhancing transportation network Upgrade of Kitano-Hakubaicho Station on the Kinkakuji Eizan Railway Keifuku Railway (Randen) Kitano Line Ryoanji Temple Temple The station is a transportation hub in northwest Kyoto, directly Ninnaji Kitano- Demachi- Keiha
Slide 14: Initiatives in the real estate business
Initiatives in the real estate business Participation in the Kyomachiya Launch of serviced office business traditional houses renovation project Utilizing buildings and facilities owned by the Keihan By acquiring or renting Kyomachiya in Kyoto City and Group, we started the serviced office business
Slide 15: Initiatives in the real estate business: condominium THE HIGH
Initiatives in the real estate business Main condominiums to be sold in the term ended March 31, 2020 and thereafter ◆ New brand for the compact urban No. of Name of property, location housing condominium “THE HIGH” units Newly built compact urban Scheduled delivery in FY2020 condominium suggesting
Slide 16: Initiatives in the retail distribution business
Initiatives in the retail distribution business Renovation of a suburban commercial Expansion of commissioned property facility management business Upgrade of Racto Yamashina Shopping Engagement in commissioned property Center management for PASSAGGIO NISHIARAI We invited MUJI as a new tenant of
Slide 17: Initiatives of the Leisure and Service business
Initiatives of the Leisure and Service business THE THOUSAND KYOTO Enhancing capabilities of existing hotels • We are promoting cooperation with agencies to In January 2019, THE THOUSAND KYOTO was attract an increasing number of inbound tourists from opened near to Kyoto Station as the highest-class
Slide 18: Progress status of major strategic investment projects
Progress status of major strategic investment projects Medium-Term Management Plan (Fiscal year) 2018 2019 2020 2021 2022 2023 2024 2025 2026 Reconstruction of Establishment of the Demolition work Construction work to Yodoyabashi Midosuji urban development plan ○ ○ to be started ○ be started Complet
Slide 19: Initiatives in ESG
Initiatives in ESG E (Environment) S (Society) G (Governance) Contribution to global warming prevention Contribution to sustainable development Enhancing governance system of local communities • We have decided to be a company with an GOOD NATURE STATION • We will discover and introduce new appeals
Slide 20: Overview of the First Half of FY2020 Financial Results
Overview of the First Half of FY2020 Financial Results 19
Slide 21: Consolidated Statements of Income
Consolidated Statements of Income • In the real estate business, sales of high-end condominiums have been robust. Revenue from the transportation business also increased due to a reactionary rise after the natural disasters in the same half term of the previous year and a rise in the number of touri
Slide 22: Segment Information
Segment Information (Millions of yen) 1H FY2020 1H FY2019 Results Results Change Change (%) Operating revenue 48,709 46,863 1,845 3.9% Transportation Operating income 8,141 6,414 1,727 26.9% Operating revenue 58,663 50,733 7,930 15.6% Real estate Operating income 10,248 7,264 2,984 41.1% Operating r
Slide 23: Segment Information (Breakdown)
Segment Information (Breakdown) [Consolidated subsidiaries] 41 companies (Addition of one company year on year) [Equity-method affiliates] 2 companies (No change year on year) Transportation Keihan Electric Railway Co., Ltd., Keifuku Electric Railway Co., Ltd., Keihan Bus Co., Ltd., and 12 other com
Slide 24: Segment Information (Transportation)
Segment Information (Transportation) (Millions of yen) 1H FY2020 Results 1H FY2019 Results Change Change (%) Operating revenue 48,709 46,863 1,845 3.9% Railway 39,416 38,061 1,354 3.6% Bus 14,193 13,736 457 3.3% Elimination -4,900 -4,934 33 Operating income 8,141 6,414 1,727 26.9% Railway 6,661 5,
Slide 25: Operating Results for Transportation Keihan Electric Railway
Operating Results for Transportation Keihan Electric Railway 1H FY2020 Results 1H FY2019 Results Change Change (%) Millions of yen Millions of yen Millions of yen % Passenger transportation 26,710 25,849 860 3.3 revenue Non-commuter passes 17,913 17,305 608 3.5 Commuter passes 8,796 8,544 252 3.0 Th
Slide 26: Segment Information (Real estate)
Segment Information (Real estate) (Millions of yen) 1H FY2020 1H FY2019 Results Results Change Change (%) Operating revenue 58,663 50,733 7,930 15.6% Real estate 51,124 43,902 7,222 16.5% Real estate sales 37,515 31,608 5,907 18.7% Real estate leasing service 11,793 10,581 1,212 11.5% Other business
Slide 27: Segment Information (Retail distribution)
Segment Information (Retail distribution) (Millions of yen) 1H FY2020 1H FY2019 Results Results Change Change (%) Operating revenue 48,195 47,625 570 1.2% Department store 24,201 23,326 875 3.8% Store 14,954 15,105 -150 -1.0% Shopping mall management 7,357 7,275 82 1.1% Others 3,935 4,004 -69 -1.7%
Slide 28: Segment Information (Leisure & service)
Segment Information (Leisure & service) (Millions of yen) 1H FY2020 Results 1H FY2019 Results Change Change (%) Operating revenue 17,960 15,009 2,950 19.7% Hotel 15,838 12,838 2,999 23.4% Leisure 2,136 2,185 -48 -2.2% Elimination -14 -13 -0 Operating income 1,788 2,097 -309 -14.7% Hotel 1,576 1,81
Slide 29: Consolidated Balance Sheets
Consolidated Balance Sheets (Millions of yen) 1H FY2020 FY2019 Results Results Change Main factors of changes Notes and accounts receivable -8,418 Current assets 166,257 180,080 -13,823 Cash and deposits -4,368 Construction in progress +4,214 Non-current assets 552,261 551,669 591 Buildings and stru
Slide 30: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) 1H FY2020 1H FY2019 Results Results Change Main factors of changes Cash flows from operating activities 28,197 17,225 10,972 Decrease in inventories +6,713 Cash flows from investing activities -12,379 -17,000 4,621 Decrease in purchase of non-c
Slide 31: FY2020 Forecasts
F KEfHAN FY 2020 Forecasts 30
Slide 32: Consolidated Statement of Income (Performance Forecast)
Consolidated Statement of Income (Performance Forecast) • Initial projections are expected to be achieved regarding profits at each stage due to robust sales of condominiums and a review of expenses, despite the expected revenue decrease caused by intensifying price competition in the hotel business
Slide 33: Segment Information (Performance Forecasts)
Segment Information (Performance Forecasts) (Major factors affecting forecasts: compared to forecast released in May) • Transportation business: Drop in power and repair expenses • Real estate business: Robust sales of condominiums • Retail distribution: Difficult conditions in the store business •
Slide 34: Operating Results for Transportation (Performance Forecasts)
Operating Results for Transportation (Performance Forecasts) Keihan Electric Railway New FY2020 full- FY2020 full-year FY2019 full- forecasts Change Change (%) Change Change (%) year forecasts released in May year results Millions of yen Millions of yen Millions of yen % Millions of yen Millions of
Slide 35: Capital Expenditure by Segment (Performance Forecasts)
Capital Expenditure by Segment (Performance Forecasts) (Millions of yen) FY2020 full-year New FY2020 full- FY2019 full-year year forecasts forecasts released Change results Change in May Capital Expenditure 49,200 55,200 -6,000 43,631 5,568 Transportation 15,900 18,300 -2,400 14,609 1,290 Real estat
Slide 36: EBITDA by Segment (Performance Forecasts)
EBITDA by Segment (Performance Forecasts) (Millions of yen) New FY2020 full- FY2020 full-year FY2019 full-year forecasts released Change Change year forecasts in May results EBITDA 55,300 53,200 2,100 53,535 1,764 Transportation 23,400 22,300 1,100 23,119 280 Real estate 23,100 21,100 2,000 22,666 4