Keihan Holdings Co.,Ltd. · TSE:9045
Keihan Holdings Co.,Ltd — Keihan Electric Railway — FY2015 Earnings Presentation
46 slides from Keihan Holdings Co.,Ltd's earnings presentation, May 14, 2015
Slide 1: FY2015 Financial Results Presentation
FY2015 (Fiscal year ended March 31, 2015) Financial Results Presentation May 14, 2015 Keihan Electric Railway Co., Ltd. (Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan.co.jp/) [Notes on forecasts] Descriptions of business forecasts and future prospects are based on current inform
Slide 2: Overview of FY2015 Financial Results
Overview of FY2015 Financial Results
Slide 3: Consolidated Statements of Income
Consolidated Statements of Income (Millions of yen) October FY2014 FY2015 Change Main factors of changes 2014 Results Results Estimate Operating 289,203 294,906 5,702 Transportation +679, Real estate +1,275, Retail +1,233, 286,400 revenue (2.0%) Leisure and service +2,337, Others +1,612 Operating 25
Slide 4: Consolidated Balance Sheets
Consolidated Balance Sheets (Millions of yen) FY2014 FY2015 Change Main factors of changes Results Results Land and buildings for sale +18,167, Current assets 147,216 171,449 24,232 Notes and accounts receivable +6,289 Construction in progress -24,797, Land -12,743, Fixed assets 523,965 492,787 -31,
Slide 5: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) FY2014 FY2015 Change Main factors of changes Results Results Income before income taxes +3,874, Operating cash flows 29,573 21,459 -8,113 Increase in inventories -13,599, Increase in accrued consumption taxes +5,529 Proceeds from sales of fixed
Slide 6: Segment Information
Segment Information (Millions of yen) October 2014 FY2014 Results FY2015 Results Change Change (%) Estimate Operating revenue 289,203 294,906 5,702 2.0% 286,400 Transportation 89,661 90,341 679 0.8% 88,700 Real estate 88,179 89,454 1,275 1.4% 82,700 Retail 95,427 96,661 1,233 1.3% 97,100 Leisure and
Slide 7: Segment Information (Breakdown)
Segment Information (Breakdown) [Consolidated subsidiaries] 41 companies (Keihan Electric Railway covers both the transportation business and the real estate business) [Equity method affiliates] 2 companies Transportation Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan
Slide 8: Results of Transportation
Results of Transportation (Millions of yen) FY2014 FY2015 October 2014 Change Change (%) Main factors of changes Results Results Estimate Railway 74,708 (+2,426) Operating 89,661 90,341 679 0.8% Bus 26,753 (+426) 88,700 revenue Elimination -11,121 (-2,173) Operating Railway 7,363 (+957) 6,928 8,086
Slide 9: Results of Real Estate
Results of Real Estate (Millions of yen) FY2014 FY2015 October 2014 Change Change (%) Main factors of changes Results Results Estimate Real estate 73,413 (+3,704) Operating revenue 88,179 89,454 1,275 1.4% Construction 19,635 (-3,423) 82,700 Elimination -3,594 (+994) Operating Real estate 14,376 (+4
Slide 10: Results of Retail
Results of Retail (Millions of yen) FY2014 FY2015 October 2014 Change Change (%) Main factors of changes Results Results Estimate Department store 52,584 (-2,782) Operating Store 27,115 (+1,150) revenue 95,427 96,661 1,233 1.3% Shopping mall management 13,852 (+2,959) 97,100 Restaurant 6,004 (-315)
Slide 11: Results of Leisure and Service
Results of Leisure and Service (Millions of yen) FY2014 FY2015 October 2014 Change Change (%) Main factors of changes Results Results Estimate Operating Hotel 25,821 (+2,762) revenue 27,423 29,761 2,337 8.5% Leisure 4,136 (-392) 28,700 Operating Hotel 3,415 (+2,123) income 1,153 3,299 2,146 186.1% L
Slide 12: Non-consolidated Statements of Income
Non-consolidated Statements of Income (Millions of yen) FY2014 FY2015 Change Change Main factors of changes Results Results (%) Operating revenue 85,996 86,342 346 0.4% Number of passengers -0.0%, Railway 52,721 52,675 -45 -0.1% Passenger transportation revenue +0.0% Subsidiary business 33,275 33,66
Slide 13: FY2016 Forecasts
FY2016 Forecasts
Slide 14: Forecast of Consolidated Business Results
Forecast of Consolidated Business Results (Millions of yen) FY2015 FY 2016 Change Change (%) Main factors of changes Results Forecast Transportation -441, Real estate -10,254, Operating revenue 294,906 287,000 -7,906 -2.7% Retail +838, Leisure and service -2,161, Others +4,250 Transportation -1,386,
Slide 15: Forecast of Consolidated Business Results by Segment
Forecast of Consolidated Business Results ≪By Segment≫ ≫ (Millions of yen) FY2015 FY 2016 Change Change (%) Main factors of changes Results Forecast Operating revenue 294,906 287,000 -7,906 -2.7% Transportation 90,341 89,900 -441 -0.5% Railway +347, Elimination -819 Real estate 89,454 79,200 -10,254
Slide 16: Forecast of Non-Consolidated Business Results
Forecast of Non-Consolidated Business Results (Millions of yen) FY2015 FY 2016 Change Change (%) Main factors of changes Results Forecast Operating revenue 86,342 84,500 -1,842 -2.1% Number of passengers +0.1% Railway operation 52,675 52,830 154 0.3% Passenger transportation revenue +0.0% Subsidiary
Slide 17: Keihan Group's Medium-term Management Plan "Bravely Pursuing Creation"
ＴＯＰＩＣＳ Keihan Group’s Medium-term Management Plan “Bravely Pursuing Creation” (FY 2016 - FY 2018)
Slide 18: Summary of Medium-term Management Plan (FY2013–FY2015)
Summary of Keihan Group’s Medium-term Management Plan (FY2013 – FY2015) ◇ Operating results versus targets (quantitative targets) (Billions of yen) Compared to Compared to Compared to FY 2013 Results medium-term FY2014 Results medium-term FY 2015 Results medium-term management plan management plan m
Slide 19: 1. Basic Policy
1. Basic Policy While further strengthening the foundation of “safety and peace of mind,” which we have been developing and protecting for the past century since our foundation, we will return to our foundation philosophy amidst the severe business factors of today, such as the decreasing population
Slide 20: 2. Main Strategies
2. Main Strategies Achieve new growth through the creation of (1) sightseeing opportunities • Kyoto, which attracts approximately 50 million sightseers annually, lies along a railway line of the Keihan Group. As a local company, we will aim to focus on the creation of sightseeing contents to draw ma
Slide 21: 2. Main Strategies: New Hotel in Front of Kyoto Station
2. Main Strategies Project to open a new hotel in the area in front of Kyoto Station • We will aim to open the Keihan Group’s flagship hotel, fitting for the global market, by promoting the integrated redevelopment of Kyoto Century Hotel and Kyoto Dai-ni Tower Hotel. • We will implement renewal for
Slide 22: 2. Main Strategies: Kyoto Tower as Global Tourism Base
2. Main Strategies Development of Kyoto Tower as a global base for tourism • Positioning Kyoto Tower (a wholly-owned subsidiary of the Keihan Group), a landmark of Kyoto, as a sightseeing base in Kyoto for inbound travelers, we will set up the Kansai Tourist Information Center, Kyoto, in cooperation
Slide 23: 2. Main Strategies: Sightseeing Along the Flow of Water
2. Main Strategies Creation of sightseeing opportunities along the Flow of Water, and connection with the global base • Originating from Mt. Hiei, the Flow of Water pours into the “Mother” Lake Biwa and runs through Kyoto and Uji, before arriving in Osaka, the City of Water. By establishing a sights
Slide 24: 2. Main Strategies: Redesign Areas Along Railway Lines
2. Main Strategies Revitalize the areas along the Keihan Railway lines—efforts to (2) redesign the areas along Keihan Railway lines • Since the development of the areas along the Keihan Railway lines progressed rapidly during the period of rapid economic growth in Japan, it is now necessary to make
Slide 25: 2. Main Strategies: Restore Communities Along Railway Lines
2. Main Strategies Project to restore communities along the Keihan Railway lines • Under the strategy to revitalize areas along the Keihan Railway lines, we will aim to create communities that will attract many more residents and visitors along the Keihan Railway lines, to activate the use of the Ke
Slide 26: 2. Main Strategies: Lifestyle Mall Along Railway Lines
2. Main Strategies Lifestyle mall along Keihan Railway lines • Under the strategy to revitalize the areas along the Keihan Railway lines, we will take advantage of opportunities to renew our facilities, and focus also on developing new contents, thereby expanding our businesses. • Regarding the enti
Slide 27: 2. Main Strategies: Enhance the Value of Living
2. Main Strategies (3) Create contents to enhance the “value of living” • The Keihan Group operates railway and other infrastructure businesses as our core businesses, with social mission of providing the value of “safety and peace of mind.” • Now that people’s lifestyles and values are changing, we
Slide 28: 2. Main Strategies: Create Contents to Enhance Business Value
2. Main Strategies Create contents to enhance business value •Today, when the focus of value needed by customers is shifting from items to experiences and significance, we need to ensure that our businesses handle contents that can attract sympathy from customers. •To create contents, we will form a
Slide 29: 2. Main Strategies: BIO-Style Contents
2. Main Strategies “BIO-Style” Contents Retail Business Keihan Department Store Co., Ltd. : Reinforce supply and sales of raw and processed organic JAS produce Keihan The Store Co., Ltd. : Establish a section for organic produce at FREST Matsuiyamate Store Keihan Ryutsu Systems Co., Ltd. : Set up Or
Slide 30: 2. Main Strategies: Steadfast Group Management
2. Main Strategies (4) Establish a “steadfast group management” style In our second foundation stage, we will work on the following challenges, and establish an appropriate management style to realize our further growth. • Reinforce competitiveness in our four core businesses of transportation, real
Slide 31: 2. Main Strategies: Transition to a Holding Company System
2. Main Strategies Transition to a holding company system <Present situation> <After the transition> Keihan Electric Railway Co., Ltd. Customer Create “value of Management control living” together Transportation Real estate Retail Leisure & with customers Management subsidiary subsidiary subsidiary
Slide 32: 2. Main Strategies: Purposes of Holding Company Transition
2. Main Strategies ■ Purposes of the transition to a holding company system Strengthen the operating structure and change employees’ mindsets to promote the autonomy of each business, and establish a management style that will match the respective businesses, thereby aiming to reinforce competitiven
Slide 33: 3. Strengthen the Management Foundation: Railway Transportation
3. Strengthen the Management Foundation Continuous measures to revitalize railway transportation toward (1) regaining the glory of railway transportation By establishing a promising foundation, we will aim to put an end to the decline in our proceeds from transporting passengers, and regain the glor
Slide 34: 3. Strengthen the Management Foundation: Safety and Network
3. Strengthen the Management Foundation Continuous measures to revitalize railway transportation toward (1) regaining the glory of railway transportation Implement measures for safety and peace of mind ◆ Promote the introduction of a new automatic train stop system (new ATS system) ■ We will newly i
Slide 35: 3. Strengthen the Management Foundation: Real Estate Business
3. Strengthen the Management Foundation (2) Real estate business as the engine of the group’s growth While continuing a sales business with the focus on short-term turnover, we will utilize know- how accumulated through our leasing business and ensure that the real estate business contributes to the
Slide 36: 3. Strengthen the Management Foundation: Real Estate Projects
3. Strengthen the Management Foundation (2) Real estate business as the engine of the group’s growth Continue sales business with the focus on short-term turnover Sell condominiums in the areas along our railway lines and major cities across the country, while creating new additional value in respon
Slide 37: 3. Strengthen the Management Foundation: Retail Business
3. Strengthen the Management Foundation (3) Retail business to enhance the value of “community” and “living” While providing commercial contents under the strategies to revitalize the areas along the Keihan Railway lines and to create sightseeing opportunities, we will enhance the value of “communit
Slide 38: 3. Strengthen the Management Foundation: In-station Shopping
3. Strengthen the Management Foundation (3) Retail business to enhance the value of “community” and “living” Develop new business categories to further improve the quality of the in-station shopping business Develop the in-station shopping business at Shin-Osaka Station Keihan The Store Co., Ltd. ha
Slide 39: 3. Strengthen the Management Foundation: Hotel and Leisure
3. Strengthen the Management Foundation (4) Hotel and leisure businesses to create sightseeing opportunities While promoting our hotel development and further enhancing the attraction of our sightseeing routes in order to create sightseeing opportunities, we will raise the quality of our existing ho
Slide 40: 3. Strengthen the Management Foundation: Hotel Renovations
3. Strengthen the Management Foundation (4) Hotel and leisure businesses to create sightseeing opportunities Raise the quality of our existing hotels in terms of both facilities and contents ◆ Renovation of Hotel Keihan Kyoto ■ Implement a full renovation of the hotel as a flagship of our lifestyle
Slide 41: 4. Macroscopic Strategy Correlation Image
4. Macroscopic Strategy Correlation Image Redesign areas along the Keihan Railway lines. Create sightseeing opportunities. Revitalize the areas along the Keihan Create sightseeing contents mainly in Kyoto, ensure that Railway lines. the effects of such contents will spread to the Flow of Revitalize
Slide 42: 5. Investment and Financial Strategies
5. Investment and Financial Strategies Distribute a dividend of 6 yen a year on a stable basis. Equity capital ratio: 25% or more D/E ratio: less than 2.5 times Allocate 70 billion yen for strategic investment for the coming three years (*). * The fund for the strategic investment will be used for t
Slide 43: 6. Quantitative Targets
6. Quantitative Targets Quantitative Targets FY 2018 (Reference) FY 2018 Consolidated 22 billion yen Consolidated net 12 billion yen operating income or more income or more Consolidated 41 billion yen Consolidated ROE (Net income to shareholders’ 6% or more EBITDA or more equity) Net consolidated in
Slide 44: 7. Income and Expenditure Plan / Management Indicators
7. Keihan Group’s Income and Expenditure Plan/ Management Indicators ◆ Keihan Group (consolidated-base) (Billions of yen) FY2015 FY2016 FY2017 FY2018 Results Forecast Plan Plan Operating revenue 294.9 287.0 295.6 302.6 Operating income 29.4 22.0 21.5 22.1 Ordinary income 27.4 18.6 17.8 18.3 Net inco
Slide 45: 7. Income and Expenditure Plan / Segment Information
7. Keihan Group’s Income and Expenditure Plan/ Segment Information Keihan Group (consolidated-base, by segment) (Billions of yen) Operating revenue Ordinary income FY2015 FY2016 FY2017 FY2018 FY2015 FY2016 FY2017 FY2018 Results Forecast Plan Plan Results Forecast Plan Plan Transportation 90.3 89.9 8
Slide 46: 8. Position of the Medium-term Management Plan
8. Position of the Medium-term Management Plan “Bravely Pursuing Creation” The period for this medium-term management plan is positioned as the three years for us to prepare for our future by implementing strategic investment based on our measures to create sightseeing opportunities and revitalize a
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