Keio Corporation · TSE:9008
Keio — H1 FY2023 Earnings Presentation
57 slides from Keio's earnings presentation, Nov 13, 2023
Slide 1: FY2023 2nd Quarter Financial Results
FY2023 2nd Quarter Financial Results －Held on November 13, 2023－ Keio Corporation Copyright 2023 Keio Corporation All Rights Reserved
Slide 2: Contents
Contents I. Progress on Medium-Term Management Plan II. FY2023 2nd Quarter Results III. FY2023 Full-Year Earnings Forecasts IV. Reference Material Copyright 2023 Keio Corporation All Rights Reserved 2
Slide 3: Performance Summary
Performance Summary FY2023 2nd Quarter Results ◼ Revenues were strong in Hotels and were up across all segments, resulting in operating revenues of 1,840 hmy. ◼ All segments showed YoY improvement, resulting in operating profit of 239 hmy and profit attributable to owners of parent of 172 hmy. ◼ Ope
Slide 4: I. Progress on Medium-Term Management Plan
I. Progress on Medium-Term Management Plan 1. Three-year Medium-Term Management Plan (FY2022 to FY2024) 2. Improvement in Railways Business Safety and Service 3. Focus on Urban Development 4. Promotion of Business Structure Reform 5. Enhancement of Earning Power 6. Building a Solid Business Base Cop
Slide 5: Three-year Medium-Term Management Plan (FY2022 to FY2024)
I. Progress on Medium-Term Management Plan 1. Three-year Medium-Term Management Plan (FY2022 to FY2024) ➢ Work on improving ease of getting around within the living sphere as a company driving Re Start new lifestyles. ➢ Central involvement in productive and attractive urban development. ➢ Creation o
Slide 6: Key Measures in the Medium-Term Management Plan
I. Progress on Medium-Term Management Plan 1. Three-year Medium-Term Management Plan (FY2022 to FY2024) Key Measures in the Medium-Term Management Plan Key Measures FY2022 FY2023 FY2024 FY2025 and beyond Revised fares Install Kugayama Install platform doors Launched passenger railway Station at all
Slide 7: Improvement in Railways Business Safety and Service
I. Progress on Medium-Term Management Plan 2. Improvement in Railways Business Safety and Service Providing services that anticipate customers’ needs Building a solid business management structure focused on the future ◼ Launched passenger railway loyalty point service ◼ Achieve carbon neutrality •
Slide 8: Focus on Urban Development
I. Progress on Medium-Term Management Plan 3. Focus on Urban Development Shinjuku area Seiseki-sakuragaoka area ◼ Shinjuku Station Southwest Exit area development ◼ Community development centered on development plan along the Tama River • The total project cost for the Keio Group is projected at aro
Slide 9: Promotion of Business Structure Reform
I. Progress on Medium-Term Management Plan 4. Promotion of Business Structure Reform Open innovation ◼ Launched ROOOT, a locally originated open ◼ eSports and school facility innovation program Opened KEIO eSPORTS LAB. CHOFU • Conducted proof of concept (PoC) trials with the seven • Second facility
Slide 10: Enhancement of Earning Power
I. Progress on Medium-Term Management Plan 5. Enhancement of Earning Power Enhancing Real Estate business Sales business ◼ Progress on investment in real estate for sale • Forecast cumulative investment up to FY2023 at 721 hmy, representing progress of 82.4% toward the three-year medium- term manage
Slide 11: Building a Solid Business Base
I. Progress on Medium-Term Management Plan 6. Building a Solid Business Base Initiatives in Sustainability ■ Setting KPIs based on materialities ・Promote sustainable growth by clearly delineating our vision as the Keio Group and expressing progress toward our vision in quantitative terms. Materialit
Slide 12: II. FY2023 2nd Quarter Results
II. FY2023 2nd Quarter Results 1. FY2023 2nd Quarter Results 2. Operating Revenues / Operating Profit Change Factors (YoY comparison) 3. Status of Main Businesses 4. Earnings by Segment (vs. FY2018) 5. Consolidated Financial Position Copyright 2023 Keio Corporation All Rights Reserved 12
Slide 13: FY2023 2nd Quarter Results
II. FY2023 2nd Quarter Results 1. FY2023 2nd Quarter Results ◼ YoY increase in both operating revenue and profit from capturing demand for lodging by foreign tourists visiting Japan and a rebound in domestic demand. ◼ Operating revenues for Transportation, Merchandise Sales, and Leisure outperformed
Slide 14: Operating Revenues / Operating Profit Change Factors (YoY)
II. FY2023 2nd Quarter Results 2. Operating Revenues / Operating Profit Change Factors (YoY comparison) ◼ Operating revenues rose across all segments, increasing 252 hmy YoY. ◼ Operating profit increased by 144 hmy YoY, improving across all segments. (￥hundred million) 2,000 Change factors for opera
Slide 15: Status of Main Businesses
II. FY2023 2nd Quarter Results 3. Status of Main Businesses ◼ In Railways, non-commuter passes rebounded, and a rebound in fixed-route buses and express buses also caused operating revenues for bus services to rebound YoY. ◼ Hotels rebounded strongly from last year as the Keio Plaza Hotel (Shinjuku)
Slide 16: Earnings by Segment (vs. FY2018)
II. FY2023 2nd Quarter Results 4. Earnings by Segment (vs. FY2018) (Units:￥hundred million) 1Q（April ー June） 2Q（July ー September） 1H（April ー September） FY2023 Change vs. FY2018 FY2023 Change vs. FY2018 FY2023 Change vs. FY2018 Results (%) Results (%) Results (%) Transportation 298 -34 ( -10.3 ) 302
Slide 17: Consolidated Financial Position
II. FY2023 2nd Quarter Results 5. Consolidated Financial Position ■ The equity ratio improved to 38.2%, maintaining financial soundness, mainly due to the profit attributable to owners of parent recorded. (Units: ¥ hundred million, ％) FY2022 FY2023 2Q Change Results Results Total Assets 9,552 9,875
Slide 18: III. FY2023 Full-Year Earnings Forecasts
III. FY2023 Full-Year Earnings Forecasts 1. FY2023 Full-Year Earnings Forecasts 2. Operating Revenues / Operating Profit Change Factors 3. Forecasts for Main Businesses 4. Forecasts by Segment 5. Investment Forecast 6. Dividend Forecast Copyright 2023 Keio Corporation All Rights Reserved 18
Slide 19: FY2023 Full-Year Earnings Forecasts
III. FY2023 Full-Year Earnings Forecasts 1. FY2023 Full-Year Earnings Forecasts ◼ Operating revenues are expected to increase by 50 hmy and operating profit by 30 hmy over the previous forecast due to the increase in foreign tourists visiting Japan and the rebound in domestic demand. ◼ Profit attrib
Slide 20: Change Factors (YoY comparison)
III. FY2023 Full-Year Earnings Forecasts 2. Operating Revenues / Operating Profit Change Factors (YoY comparison) ◼ Both operating revenues and operating profit are forecast to increase from the previous year due to the increases in railway passenger fares and making NB CONSTRUCTION CO. LTD. a subsi
Slide 21: Change Factors (vs. Previous Forecast)
III. FY2023 Full-Year Earnings Forecasts 2. Operating Revenues / Operating Profit Change Factors (vs. Previous Forecast) ◼ Transportation, Merchandise Sales, and Leisure outperformed the forecast. We therefore forecast an increase in operating profit of 30 hmy compared to the previous forecast. (￥hu
Slide 22: Forecasts for Main Businesses: Transportation
III. FY2023 Full-Year Earnings Forecasts 3. Forecasts for Main Businesses Transportation ◼ In Railways, passengers carried is expected to be on par with the previous forecast (the roughly 33 hmy from fare increases is already reflected in the previous forecast). ◼ An increase in both operating reven
Slide 23: Forecasts for Main Businesses: Merchandise Sales
III. FY2023 Full-Year Earnings Forecasts 3. Forecasts for Main Businesses Merchandise Sales ◼ Department Stores are expected to see an increase in operating profit over the previous forecast due to a decrease in utility expenses and an increase in sales from new customers captured, mainly on the foo
Slide 24: Forecasts for Main Businesses: Leisure (Hotels)
III. FY2023 Full-Year Earnings Forecasts 3. Forecasts for Main Businesses Leisure (Hotels) ◼ Lodging demand remained strong, mainly from leisure demand and foreign tourists visiting Japan. ◼ Average room rates at Keio Plaza Hotel (Shinjuku) and Keio Presso Inn are expected to be higher than the pre-
Slide 25: Forecasts by Segment
III. FY2023 Full-Year Earnings Forecasts 4. Forecasts by Segment (Units:￥hundred million) FY2023 Full-Year Earnings Forecasts FY2023 FY2023 FY2022 Previous vs. Forecast Current Change (%) Forecast Results (% change) Forecast (based on August 2, 2023 announcement) Transportation 1,111 1,224 112 （ 10.
Slide 26: Investment Forecast
III. FY2023 Full-Year Earnings Forecasts 5. Investment Forecast ■ The investment forecast for FY2023 remains unchanged from the initial plan. ■ In addition to investments that will contribute to improved safety and services, we continue to invest in increasing value and actively procuring real estat
Slide 27: Dividend Forecast
III. FY2023 Full-Year Earnings Forecasts 6. Dividend Forecast ◼ Our fundamental policy is to return profits to shareholders based on earnings performance and other factors, while building internal reserves required for strengthening the management base in preparation for future business expansion an
Slide 28: IV. Reference Material (FY2023 2nd Quarter Results)
IV. Reference Material (FY2023 2nd Quarter Results) 1. Consolidated Statements of Income 2. Overview by Segment 3. Segment Information (Transportation) 4. Segment Information (Merchandise Sales) 5. Segment Information (Real Estate) 6. Segment Information (Leisure) 7. Segment Information (Other Busin
Slide 29: Consolidated Statements of Income
IV. Reference Material (FY2023 2nd Quarter Results) 1. Consolidated Statements of Income (Units:￥hundred million) FY2023 2nd Quarter Earnings FY2022 2Q FY2023 2Q FY2023 vs. Forecast YoY Change (%) Results Results Forecast (% change) (based on August 2, 2023 announcement) Operating Revenues 1,588 1,8
Slide 30: Overview by Segment
IV. Reference Material (FY2023 2nd Quarter Results) 2. Overview by Segment ■ Hotels performed well and all segments outperformed YoY. ■ Operating profit showed YoY improvement in all segments. ■ Operating profit outperformed the previous forecast in all segments. (Units:￥hundred million) FY2023 2nd
Slide 31: Overview by Segment (Quarterly)
IV. Reference Material (FY2023 2nd Quarter Results) 2. Overview by Segment (Quarterly) (Units:￥hundred million) Operating Revenues Operating Profit FY2023 1Q FY2023 2Q FY2023 FY2023 1Q FY2023 2Q FY2023 Results Results 1H Results Results 1H （Apr.-Jun.） （Jul.-Sep.） （Apr.-Sep.） （Apr.-Jun.） （Jul.-Sep.）
Slide 32: Segment Information (Transportation)
IV. Reference Material (FY2023 2nd Quarter Results) 3. Segment Information (Transportation) ■ In Railways, the number of passengers carried rebounded and passenger revenues increased compared to the same period in the previous fiscal year. ■ Revenues for bus services also increased for fixed-route b
Slide 33: Railways Transportation Results
IV. Reference Material (FY2023 2nd Quarter Results) 3. Segment Information (Transportation) Railways Transportation Results (Units: Thousands of People, ￥million) FY2023 2nd Quarter Results FY2022 2Q FY2023 2Q Change (%) Results Results Commuter-Pass 156,780 163,522 6,742 （ 4.3 ） (Business) 115,016
Slide 34: Segment Information (Transportation)
IV. Reference Material (FY2023 2nd Quarter Results) 3. Segment Information (Transportation) Transportation (Railways): Percentage change in number of passengers carried vs. FY2018 （％） FY2022 FY2023 -11.4 Full-year comparison -12.0 (previous forecast) -13.4 -14.0 -13.7 -14.1 -15.9 -15.8 -15.0 Full-ye
Slide 35: Segment Information (Merchandise Sales)
IV. Reference Material (FY2023 2nd Quarter Results) 4. Segment Information (Merchandise Sales) ■ In department stores, the rebound in customer traffic led to growth in operating revenues compared to the same period in the previous fiscal year. ■ Retail stores saw revenues increase on strong performa
Slide 36: Segment Information (Merchandise Sales)
IV. Reference Material (FY2023 2nd Quarter Results) 4. Segment Information (Merchandise Sales) Department stores: Percentage change in department store sales in Shinjuku vs. FY2018 (Converted to figures before application of the Accounting Standard for Revenue Recognition) （％） 20.0 FY2022 FY2023 13.
Slide 37: Segment Information (Real Estate)
IV. Reference Material (FY2023 2nd Quarter Results) 5. Segment Information (Real Estate) ■ Land and building leasing saw results on par with the same period in the previous year. ■ In real estate sales, revenues increased on higher sales of renovated properties. (Units:￥hundred million) FY2023 2nd Q
Slide 38: Segment Information (Leisure)
IV. Reference Material (FY2023 2nd Quarter Results) 6. Segment Information (Leisure) ■ In Hotels, revenues increased as room rates rose substantially to a level higher than the pre-pandemic level at Keio Plaza Hotel (Shinjuku) and Keio Presso Inn, mainly due to the lodging demand these hotels captur
Slide 39: Segment Information (Leisure)
IV. Reference Material (FY2023 2nd Quarter Results) 6. Segment Information (Leisure) Hotels: Percentage change in Keio Plaza Hotel (Shinjuku) net sales vs. FY2018 Full-year comparison （％） FY2022 FY2023 (current forecast) -0.1 -1.4 -7.9 -5.7 -6.0 -3.0 0.0 -15.5 -18.1 -20.0 -19.9 -20.0 -29.4 -33.2 Ful
Slide 40: Segment Information (Other Businesses)
IV. Reference Material (FY2023 2nd Quarter Results) 7. Segment Information (Other Businesses) ■ Railway car maintenance revenues increased, mainly due to an increase in orders. (Units:￥hundred million) FY2023 2nd Quarter Earnings FY2022 2Q FY2023 2Q YoY Change (%) Results Results Operating Revenues
Slide 41: Non-Operating Income/Expenses and Extraordinary P/L
IV. Reference Material (FY2023 2nd Quarter Results) 8. Non-Operating Income/Expenses and Extraordinary P/L (￥hundred million) FY2022 2Q FY2023 2Q Change Change Factors Results Results Operating Revenues 1,588 1,840 252 Operating Profit 94 239 144 Non-Operating Income 18 13 -4 Subsidy income: -8 Non-
Slide 42: Consolidated Balance Sheets
IV. Reference Material (FY2023 2nd Quarter Results) 9. Consolidated Balance Sheets ■ Total assets increased, mainly due to increases in inventories from acquisition of real estate for sale and in property, plant and equipment. ■ Liabilities increased, mainly due to an increase in loans payable and r
Slide 43: Consolidated Statements of Cash Flows
IV. Reference Material (FY2023 2nd Quarter Results) 10. Consolidated Statements of Cash Flows (￥hundred million) FY2022 FY2023 2Q 2Q Change Notes Results Results Cash Flows from Profit before income taxes: +235 Operating Activities 165 308 143 Depreciation and amortization: +143 Cash Flows from Inve
Slide 44: IV. Reference Material (FY2023 Full-Year Earnings Forecasts)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 1. Consolidated Statements of Income 2. Overview by Segment 3. Segment Information (Transportation) 4. Segment Information (Merchandise Sales) 5. Segment Information (Real Estate) 6. Segment Information (Leisure) 7. Segment Information (Ot
Slide 45: Consolidated Statements of Income
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 1. Consolidated Statements of Income ◼ Transportation, Merchandise Sales, and Leisure outperformed the forecast due to the increase in foreign tourists visiting Japan and the rebound in domestic demand. ◼ Profit attributable to owners of p
Slide 46: Consolidated Statements of Income (2nd Half Forecast)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 1. Consolidated Statements of Income (2nd Half Forecast) (Units:￥hundred million) FY2023 FY2023 FY2023 1st Half Results 2nd Half Forecast Full-year Forecast (Apr.-Sep.) (Oct.-Mar.) (Apr.-Mar.) Operating Revenues 1,840 2,089 3,930 Operating
Slide 47: Overview by Segment
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 2. Overview by Segment (Units:￥hundred million) FY2023 Full-Year Earnings Forecasts FY2023 FY2023 FY2022 Previous vs. Forecast Current Change (%) Forecast Results (% change) Forecast (based on August 2, 2023 announcement) Transportation 1,
Slide 48: Overview by Segment (2nd Half Forecast)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 2. Overview by Segment (2nd Half Forecast) (Units:￥hundred million) Operating Revenues Operating Profit FY2023 FY2023 FY2023 FY2023 FY2023 FY2023 1st Half 2nd Half Full-year 1st Half 2nd Half Full-year Results Forecast Forecast Results For
Slide 49: Segment Information (Transportation)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 3. Segment Information (Transportation) (Units:￥hundred million) FY2023 Full-Year Earnings Forecasts FY2023 FY2023 FY2022 vs. Forecast Current YoY Change (%) Previous Results (% change) Forecast Forecast (based on August 2, 2023 announceme
Slide 50: Railways Transportation Results
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 3. Segment Information (Transportation) Railways Transportation Results (Units: Thousands of People, ￥million) FY2023 Forecasts FY2023 FY2023 FY2022 vs. Forecast Current YoY Change (%) Previous Results (% change) Forecast Forecast (based o
Slide 51: Railways: Percentage change vs. FY2018
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 3. Segment Information (Transportation) Railways: Percentage change in number of passengers carried vs. FY2018 （％） 10.0 0.0 0.5 Previous forecast vs. 0.0 FY2018 Non-Commuter Pass -0.8 -10.8 -5.6 -5.7 -10.0 Total -2.7 -22.4 -18.3 -13.7 -13.
Slide 52: Segment Information (Merchandise Sales)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 4. Segment Information (Merchandise Sales) (Units:￥hundred million) FY2023 Full-Year Earnings Forecasts FY2023 FY2023 FY2022 vs. Forecast Current YoY Change (%) Previous Results (% change) Forecast Forecast (based on August 2, 2023 announc
Slide 53: Segment Information (Real Estate)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 5. Segment Information (Real Estate) (Units:￥hundred million) FY2023 Full-Year Earnings Forecasts FY2023 FY2023 FY2022 vs. Forecast Current YoY Change (%) Previous Results (% change) Forecast Forecast (based on August 2, 2023 announcement)
Slide 54: Segment Information (Leisure)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 6. Segment Information (Leisure) (Units:￥hundred million) FY2023 Full-Year Earnings Forecasts FY2023 FY2023 FY2022 vs. Forecast Current YoY Change (%) Previous Results (% change) Forecast Forecast (based on August 2, 2023 announcement) Ope
Slide 55: Segment Information (Leisure)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 6. Segment Information (Leisure) Hotels: Percentage change in net sales vs. FY2018 Previous Keio Plaza Hotel forecast vs. （％） -6.0 (Shinjuku) FY2018 0.0 -7.9 -12.3 -10.0 -10.3 -11.5 -11.7 -31.6 Keio Presso Inn -30.0 (all locations) -50.0 -
Slide 56: Segment Information (Other Businesses)
IV. Reference Material (FY2023 Full-Year Earnings Forecasts) 7. Segment Information (Other Businesses) (Units:￥hundred million) FY2023 Full-Year Earnings Forecasts FY2023 FY2023 FY2022 vs. Forecast Current YoY Change (%) Previous Results (% change) Forecast Forecast (based on August 2, 2023 announce
Slide 57: Notice on earnings forecasts
The earnings forecasts and outlines on future performance noted in these materials include projections based on certain forecasts/assumptions made at the time of publication. Actual performance may differ from forecast figures due to various factors.