Keihan Holdings Co.,Ltd. · TSE:9045
Keihan Holdings Co.,Ltd — FY2017 Earnings Presentation
35 slides from Keihan Holdings Co.,Ltd's earnings presentation, May 11, 2017
Slide 1: FY2017 Financial Results Presentation
FY2017 (Fiscal year ended March 31, 2017) Financial Results Presentation May 11, 2017 Keihan Holdings Co., Ltd. (Tokyo Stock Exchange 1st / Securities Code: 9045 http://www.keihan-holdings.co.jp/) [Notes on forecasts] Descriptions of business forecasts and future prospects are based on current infor
Slide 2: Overview of FY2017 Financial Results
Overview of FY2017 Financial Results
Slide 3: Consolidated Statements of Income
Consolidated Statements of Income Both revenue and profits increased due to factors such as the strong passenger revenue of Keihan Overview of FY2017 Electric Railway Co., Ltd. in the transportation business, and the sale of a for-lease property in the real (year-on-year estate business. comparison)
Slide 4: Segment Information
Segment Information The transportation business posted a larger revenue and smaller profits. Both revenue and profits rose in the real estate business, while they both shrank in the retail distribution business. The leisure and service business posted a smaller revenue, but an increase in profits. O
Slide 5: Segment Information (Breakdown)
Segment Information (Breakdown) [Consolidated subsidiaries] 40 companies [Equity-method affiliates] 2 companies Transportation Keihan Electric Railway Co., Ltd., Keifuku Electric Railroad Co., Ltd., Keihan Bus Co., Ltd., and 13 other companies Keihan Holdings Co., Ltd., Keihan Dentetsu Real Estate C
Slide 6: Segment Information (Transportation)
Segment Information (Transportation) Railway business Revenue grew thanks to the strong passenger revenue of Keihan Electric Railway helped by factors such as an increase in the number of tourists to the Kyoto area. However, profits declined due to factors such as an increase in repair expenses. Bus
Slide 7: Segment Information (Real Estate)
Segment Information (Real Estate) Real estate sales business Revenue increased thanks to the sale of Fine Centreo City, The Osaka Residence Umeda Ogimachi Koen, Fine Residence Kawagoe and other apartment units, and the sale of a for-lease property. However, profits declined due to factors such as hi
Slide 8: Segment Information (Retail distribution)
Segment Information (Retail distribution) Department stores Revenue shrank due to factors such as the opening of a competitor in the neighborhood and poor sales of daily food items and women’s clothing. However, profits grew due to lower expenses resulting from cost-saving efforts. Stores Revenue gr
Slide 9: Segment Information (Leisure & Service)
Segment Information (Leisure & Service) Hotel business Revenue decreased due to factors such as the closing of the Kyoto Dai-ni Tower Hotel. However, profits rose thanks to the impact of guest room upgrading in refurbished hotels such as Kyoto Century Hotel and Hotel Keihan Kyoto Grande and a reduct
Slide 10: Consolidated Balance Sheets
Consolidated Balance Sheets (Millions of yen) FY2016 FY2017 Change Main factors of changes Results Results Cash and deposits -6,699 Current assets 168,510 157,655 -10,855 Other current assets -2,595 Property, plant and equipment +15,672 Non-current assets 501,822 521,976 20,154 Deferred tax assets +
Slide 11: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) FY2016 FY2017 Change Main factors of changes Results Results Increase in accrued consumption taxes payable +6,037 Cash flows from operating activities 36,334 38,569 2,234 Increase in other current liabilities +3,499 Increase in notes and accoun
Slide 12: Segment Information (Capital Expenditure/EBITDA)
Segment Information (Capital Expenditure/EBITDA) ■ Capital Expenditure (Millions of yen) October Estimate FY2016Results FY2017 Results Change Change of FY2017 Results Transportation 12,749 17,690 4,941 16,600 1,090 Real estate 13,392 16,553 3,160 9,700 6,853 Retail distribution 1,609 2,341 731 3,100
Slide 13: FY2018 Forecasts
FY2018 Forecasts
Slide 14: Consolidated Statement of Income (Performance Forecast)
Consolidated Statement of Income (Performance Forecast) Revenue is expected to increase in the transportation business due to a larger passenger revenue for Keihan Electric Overview of full-year Railway, in the retail distribution business thanks to the impact of new store openings, and in the hotel
Slide 15: Segment Information (Performance Forecasts)
Segment Information (Performance Forecasts) ■ Operating Revenue/Operating Income (Millions of yen) New FY2018 full- 2017/03 Change Main factors of changes year forecasts Total operating revenue 302,917 300,000 -2,917 Total operating income 32,343 27,000 -5,343 Operating revenue 94,404 92,100 -2,304
Slide 16: Segment Information (Performance Forecasts)
Segment Information (Performance Forecasts) ■ Capital Expenditure (Millions of yen) New FY2018 full- FY2017 Results Change year forecasts Transportation 17,690 16,800 -890 Real estate 16,553 18,400 1,846 Retail distribution 2,341 2,400 58 Leisure and service 1,877 2,800 922 Others 34 0 -34 Administr
Slide 17: Operating Results for Transportation (Performance Forecasts)
Operating Results for Transportation (Performance Forecasts) << Forecast of operating results for transportation (Keihan Electric Railway) >> ■ Number of passengers New FY2018 full- FY2017 Results Change Change (%) year forecasts Thousands of people Thousands of people Thousands of people % Non-comm
Slide 18: Progress Status of Keihan Group's Medium-Term Management Plan
TOPICS Progress Status of Keihan Group’s Medium-Term Management Plan “Bravely Pursuing Creation”
Slide 19: Keihan Group's Medium-Term Management Plan
Keihan Group’s Medium-Term Management Plan (FY2016 – FY2018) Basic Policy Keihan Group’s Determination to Take on Challenges at the “Second Foundation Stage” – Bravely Pursuing Creation – Strengthen Main Strategies the Management Foundation Achieve new growth through the creation of Continuous measu
Slide 20: Overview of Medium-Term Management Plan (Measures Taken)
Overview of Keihan Group’s Medium-Term Management Plan (Measures Taken) Qualitative goals Measures taken Achieve new growth through the creation of Project to open a new hotel in the area in front of Kyoto Station sightseeing opportunities • Renovation of Kyoto Century Hotel • Starting the construct
Slide 21: Medium-Term Management Plan (Comparison of Quantitative Targets)
Overview of Keihan Group’s Medium-Term Management Plan (Comparison of Quantitative Targets) (In 100 (In 100 million yen) Consolidated operating income millions yen) Consolidated EBITDA 400 600 300 400 200 200 Forecast Forecast Actual Actual Actual Actual 100 Plan Plan Plan Plan Plan Plan 0 0 2015年度
Slide 22: Businesses in Kyoto Area
Businesses in Kyoto Area * Based on FY2013 as 100 Kurama Eizan trains Garden Museum Hiei Eizan Electric Railway Proceeds from transporting passengers Biwako Rose Town 120 Takaragaike Sakamoto Cable Eizan Cable Eizan Ropeway Yase-Hieizanguchi Lake Biwa Sakamoto 110 Keihan trains (Otsu Line) Kitano-Ha
Slide 23: Achieve new growth through the creation of sightseeing opportunities
Main Strategy Achieve new growth through the creation of sightseeing opportunities Enhance tourism business in places such as areas around Kyoto Station Full renewal of commercial facilities in Kyoto Tower Building Renewed the floor design to make it more suitable for a global base that welcomes dom
Slide 24: Achieve new growth through the creation of sightseeing opportunities
Main Strategy Achieve new growth through the creation of sightseeing opportunities Commercial facility of Kyoto Full renovation of Kyoto Tower Hotel Annex Tower Building Fully renovated guest rooms to create a comfortable and KYOTO TOWER SANDO functional space with the aim of differentiating the hot
Slide 25: Revitalize the areas along the Keihan Railway lines
Main Strategy Revitalize the areas along the Keihan Railway lines— efforts to redesign the areas along the Keihan Railway lines Redevelopment of Hirakatashi Station and its ■Profile of Hirakata City surrounding areas • Population: 404,963 (as of December 2016) Kyoto Prefecture • Great medical system
Slide 26: Create contents under the theme BIOSTYLE
Main Strategy Create contents to enhance the “value of living” ◆ Create contents under the theme “BIOSTYLE” Start the construction of a commercial complex in Shijo-Kawaramachi, Kyoto • Address: Inaricho (Kawaramachi-dori Shijo Sagaru), Shimogyo-ku, Kyoto City • Scheduled to open in: Spring 2019 • Bu
Slide 27: Introduction of Premium Cars with reserved seats
Strengthen the Management Foundation Continuous measures to revitalize railway transportation toward regaining the glory of railway transportation ◆ Introduction of Premium Cars with reserved seats to limited express trains Convert the sixth car of each of ten eight-car 8000 Keihan limited express t
Slide 28: Introduce sightseeing carriages on Eizan Electric Railway
Strengthen the Management Foundation Continuous measures to revitalize railway transportation toward regaining the glory of railway transportation ◆ Introduce sightseeing carriages on Eizan Electric Lake Biwa Railway Eizan Cable/ Ropeway Boldly expressing the mystical atmosphere of Mount Hiei and Sa
Slide 29: Main condominiums to be sold in the term ending March 2018
Strengthen the Management Foundation Real estate business as the engine of the group’s growth ◆ Main condominiums to be sold in the term ended March 31, 2018 Scheduled to be posted Scheduled to be posted Property name, location, number of units for sale Property name, location, number of units for s
Slide 30: Development and block leasing of a commercial building in Tokyo
Strengthen the Management Foundation Real estate business as the engine of the group’s growth ◆ Development and block leasing of a commercial building in Tokyo Develop a commercial building on land owned by Keihan Real Estate Co., Ltd. in Kyobashi 2-chome, Chuo-ku, Tokyo and lease the entire buildin
Slide 31: Upgrade of Keihan Mall
Strengthen the Management Foundation Retail distribution business to enhance the value of “community” and “living” ◆ Upgrade of Keihan Mall ◆ Situation of the business operations of cafe co. (which became a subsidiary in December 2016) Upgrade of a shopping mall directly linked to Kyobashi Station,
Slide 32: Further improve the quality of in-station shopping business
Strengthen the Management Foundation Retail distribution business to enhance the value of “community” and “living” ◆ Further improve the quality of in-station shopping business Upgrade of Keihan Temmabashi Panante, a commercial facility within Keihan Temmabashi Station An array of restaurants and ca
Slide 33: Increase hotel openings
Strengthen the Management Foundation Hotel and leisure businesses to create sightseeing opportunities ◆ Increase hotel openings Opening of Hotel Keihan Yodoyabashi Accommodation-only hotel in an excellent location with good access to major spots in Osaka City and direct train routes to tourist spots
Slide 34: Progress Status of Major Strategic Investment Projects
Progress Status of Major Strategic Investment Projects Medium-Term Management Plan “Bravely Pursuing Creation” FY2016 FY2017 FY2018 FY2019 Construction Scheduled opening New hotel in the area in front of Kyoto Station starts (2017) (FY2019) Creation of sightseeing opportunities Opening of a tourist
Slide 35: Notice on Governance and Shares
(Reference) Notice on Governance and Shares ◆ Transition to a Company with a Supervisory Committee [Purpose of Transition] • Achieve speedier decision-making by delegating a significant portion of decision-making concerning important business execution to directors. • Further improve the effectivene