Keihan Holdings Co.,Ltd. · TSE:9045
Keihan Holdings Co.,Ltd — FY2012 Earnings Presentation
40 slides from Keihan Holdings Co.,Ltd's earnings presentation, May 16, 2012
Slide 1: FY2012 Financial Results Presentation
FY2012 (Fiscal year ended March 31, 2012) Financial Results Presentation May 16, 2012 Keihan Electric Railway Co., Ltd. (Tokyo Stock Exchange 1st/Osaka Securities Exchange 1st Securities Code: 9045 http://www.keihan.co.jp/) [Notes on forecasts] Descriptions of business forecasts and future prospects
Slide 2: Overview of FY2012 Financial Results
Overview of FY2012 Financial Results
Slide 3: Consolidated Statements of Income
Consolidated Statements of Income (Millions of yen) 2011/11 FY2011 FY2012 Change Main factors of changes Estimate Operating revenue 259,511 265,629 6,118 Transportation -2,746, Real estate +4,640, Retail +1,576, 260,600 (2.4%) Leisure and service +2,289, Others -12 Operating income 16,269 18,160 1,8
Slide 4: Consolidated Balance Sheets
Consolidated Balance Sheets (Millions of yen) FY2011 FY2012 Change Main factors of changes Land and buildings for sale +9,302 Current assets 132,791 137,064 4,272 Notes and accounts receivable +4,447 Cash and deposit -8,227 Property, plant and equipment +27,375 Fixed assets 473,437 505,438 32,000 (N
Slide 5: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) FY2011 FY2012 Change Main factors of changes Changes in inventories -6,638 Operating cash flows 27,558 14,818 -12,739 Income taxes paid -3,906 Changes in notes and accounts receivable -3,276 Purchase of investments in subsidiaries resulting in
Slide 6: Segment Information
Segment Information (Millions of yen) FY2011 FY2012 Change Change (%) 2011/11 Estimate Operating revenue 259,511 265,629 6,118 2.4 260,600 Transportation 94,605 91,858 -2,746 -2.9 90,900 Real estate 56,801 61,442 4,640 8.2 59,500 Retail 96,060 97,637 1,576 1.6 96,900 Leisure and service 22,641 24,93
Slide 7: Results of Transportation
Results of Transportation (Millions of yen) 2011/11 FY2011 FY2012 Change Change (%) Main factors of changes Estimate Railway operation 78,894 (-1,056) Operating revenue 94,605 91,858 -2,746 -2.9 Bus 25,379 (+1,007) 90,900 Taxi (-2,071) Railway operation 5,461 (-269) Operating income 5,766 5,740 -26
Slide 8: Results of Real Estate
Results of Real Estate (Millions of yen) 2011/11 FY2011 FY2012 Change Change (%) Main factors of changes Estimate Real estate 48,532 (+3,403) Operating revenue 56,801 61,442 4,640 8.2 Construction 13,379 (+1,347) 59,500 Real estate 10,089 (+1,414) Operating income 8,820 10,186 1,365 15.5 Constructio
Slide 9: Results of Retail
Results of Retail (Millions of yen) 2011/11 FY2011 FY2012 Change Change (%) Main factors of changes Estimate Department store 54,320 (+2,362) Store 28,179 (-1,094) Operating revenue 96,060 97,637 1,576 1.6 Shopping mall management 11,463 (+452) 96,900 Restaurant 6,561 (-247) Department store 365 (-6
Slide 10: Results of Leisure and Service
Results of Leisure and Service (Millions of yen) 2011/11 FY2011 FY2012 Change Change (%) Main factors of changes Estimate Hotel 20,312 (+2,208) Operating revenue 22,641 24,931 2,289 10.1 Leisure 4,771 (+29) 24,500 Hotel 389 (+168) Operating income 368 413 44 12.0 Leisure 190 (+51) 400 Depreciation 8
Slide 11: Non-consolidated Statements of Income
Non-consolidated Statements of Income (Millions of yen) FY2011 FY2012 Change Change (%) Main factors of changes Operating revenue 74,936 78,809 3,872 5.2 Number of passengers -0.4% Railway operation 53,188 52,821 -367 -0.7 Passenger transportation revenue -0.7% Subsidiary business 21,748 25,987 4,23
Slide 12: FY2013 Forecasts
FY2013 Forecasts
Slide 13: Forecast of Consolidated Business Results (1)
Forecast of Consolidated Business Results (1) (Millions of yen) FY2012 FY2013 Change Change (%) Main factors of changes Results Forecast Transportation +441, Real estate +4,257, Retail -1,737, Operating revenue 265,629 268,900 3,270 1.2 Leisure and service +568 Transportation -140, Real estate -386,
Slide 14: Forecast of Consolidated Business Results (2)
Forecast of Consolidated Business Results (2) << By segment >> (Millions of yen) FY2012 FY2013 Change Change (%) Main factors of changes Results Forecast Operating revenue 265,629 268,900 3,270 1.2 Transportation 91,858 92,300 441 0.5 Bus +153, Railway operation -343 Real estate management +2,106 Re
Slide 15: Forecast of Non-Consolidated Business Results
Forecast of Non-Consolidated Business Results (Millions of yen) FY2012 FY2013 Change Change (%) Main factors of changes Results Forecast Operating revenue 78,809 83,000 4,190 5.3 Number of passengers -1.2% Railway operation 52,821 52,200 -621 -1.2 Passenger transportation revenue -1.1% Subsidiary bu
Slide 16: Keihan Group's Medium-term Management Plan (FY2013-2015)
TOPICS Keihan Group’s Medium-term Management Plan (FY2013-2015)
Slide 17: Summary of ATTACK 2011
The Previous Medium-term Management Plan (FY2010-2012) Summary of ATTACK 2011 (Billions of yen) Numeric targets FY2012 FY2012 Vs. Targets (consolidated basis) Targets Results Operating income 20.7 18.1 -2.6 EBITDA 42.0 36.2 -5.8 ROA 3.2% 2.9% -0.3 pt (Operating income to total assets) Net income 8.0
Slide 18: Basic Policy in Medium-term Management Plan
1. Basic Policy in Medium-term Management Plan Over the next three years, we will implement measures to counter the shrinking market due to population decline and any sudden deterioration in the operating environment, and to support the future development of the Keihan Group. Basic Policy Building t
Slide 19: Issues to be Addressed
2. Issues to be Addressed (1) Ensure safety and increase risk management capabilities 1. Improve safety on the railways 2. Increase the Group’s crisis response capabilities for an event such as a major natural disaster Expand the business by reviving railways via development along (2) the Keihan Rai
Slide 20: Positioning of Medium-term Management Plan (FY2013-2015)
Positioning of Medium-term Management Plan (FY2013- 2015) Re-Born21 Jump21 ATTACK 2011 Medium-term Management Plan (FY2003 – FY2006) (FY2007 – FY2009) (FY2010 – FY2012) (FY2013 – 2015) Reinforcement of “Build up a Robust profitability for growth Management Base” The Keihan Group capable of conquerin
Slide 21: Corporate Strategy: Strengthen the operating structure
3. Corporate Strategy (1) Strengthen the operating structure through extensive efficiency gains 1. Operating divisions Create an efficient operating system through a radical review of the business structure Overhaul business approaches Restructure and integrate businesses in the Group Exit unprofita
Slide 22: Corporate Strategy: Revitalize areas along the Keihan Railway lines
3. Corporate Strategy (2) Revitalize areas along the Keihan Railway lines 1. Push ahead with site development Push ahead with the creation of highly livable areas by developing strategic sites such as the KUZUHA MALL second-stage development plan in order to ensure areas along our lines continue to
Slide 23: Push ahead with site development: KUZUHA MALL
3-(2) Revitalize Areas along the Keihan Railway Lines Push ahead with site development KUZUHA MALL second-stage development plan Based on the development concept “Towards Kuzuha we can be proud of ,” we will develop KUZUHA MALL into one of the best regional shopping centers in Japan in terms of size
Slide 24: Implement our Kyoto strategy
3-(2) Revitalize Areas along the Keihan Railway Lines Implement our Kyoto strategy Enhance the presence of our transport network Non-stop RAKU RAKU Keihan express service during the Spring tourist season Operate the non-stop Keihan express (Yodoyabashi – Demachiyanagi) service using 8000 series roll
Slide 25: Promote new businesses to develop areas along our lines
3-(2) Revitalize Areas along the Keihan Railway Lines Promote new businesses to develop areas along our lines Senior citizen lifestyle support business Develop new facilities with nursing care services Keihan Life Support, which offers nursing care services for senior citizens, is developing new fac
Slide 26: Strategy to Revitalize Areas along the Keihan Railway Lines
Strategy to Revitalize Areas along the Keihan Railway Lines Revive the railways] Rebuild businesses focused on stations to further strengthen our railways by creating more vibrant areas along our lines Develop businesses Expand areas along our lines along our lines Create Revive more railways vibran
Slide 27: Create livable areas along our lines where people want to live
Strategy to Revitalize Areas along the Keihan RailwayLines Create Create livable livable areas areas along along our our lines lines where where people people want want to to live live Population Population increase increase along along our our lines lines [Projected generational cycle along our lin
Slide 28: Business Strategy: Transportation
4- (1) Business Strategy Transportation As part of efforts to ensure safety and peace of mind, we will develop services tailored to the needs of our customers while boosting the efficiency of our transport operating system. 1. Ensure safety and peace of mind Work to ensure safety and peace of mind b
Slide 29: Business Strategy: Transportation - Safety and Peace of Mind
4- (1) Business Strategy Transportation Ensure safety and peace of mind New 13000 series rolling stock introduced (five carriages) 1. Safety improvements Increase in structural strength of carriage bodies More handles for passengers to grab in the event of accidents and emergency braking, larger and
Slide 30: Business Strategy: Transportation - Customer Services
4- (1) Business Strategy Transportation Develop services tailored to the needs of customers Nationwide compatibility for transport IC cards As a member of the KANSAI THRU PASS group, Keihan plans to join a nationwide transport IC card compatibility project (spring 2013) The aim is to improve conveni
Slide 31: Business Strategy: Real Estate
4- (2) Business Strategy Real Estate In the real estate leasing service business, we will seek to boost the value of assets and strategically replace portfolio assets; in the real estate sales business, we will continue to focus on short-term turnover business. 1. Boost asset value and replace portf
Slide 32: Business Strategy: Real Estate - Boost asset value
4- (2) Business Strategy Real Estate Boost asset value and strategically replace portfolio assets in real estate leasing business Expand earnings through the consolidation of Eastern Kogyo Eastern Kogyo Co., Ltd., which manages Eastern Building, became our subsidiary on January 27, 2012 The subsidia
Slide 33: Business Strategy: Real Estate - Short-term turnover business
4- (2) Business Strategy Real Estate Continue to focus on short-term turnover business New property sales Dojima The Residence Mark Tower A high-rise condominium located in the heart of Osaka in the Dojima area, midway between Nakanoshima and the Ume-Kita area currently being redeveloped Location :
Slide 34: Business Strategy: Retail
4- (3) Business Strategy Retail We will steadily implement the KUZUHA MALL second-stage development plan, boost competitiveness by extensively overhauling the business structure, and expand the property management business. 1. Implement the KUZUHA MALL second-stage development plan Steadily implemen
Slide 35: Business Strategy: Retail - KUZUHA MALL development
4- (3) Business Strategy Retail Implement the KUZUHA MALL second-stage development plan Initiatives timed to coincide with the KUZUHA MALL second-stage development plan progress Keihan Ryutsu Systems Co., Ltd. Using the renovation as an opportunity to boost shopping center value, Keihan Ryutsu Syste
Slide 36: Business Strategy: Leisure and Service
4- (4) Business Strategy Leisure and Service We will boost competitiveness by extensively overhauling the business structure, target tourism-related demand, and build the hotel brand. 1. Strengthen sales and marketing in the hotel business Enhance cooperation between the 13 hotels in the Keihan Grou
Slide 37: Business Strategy: Leisure and Service - Hotel business
4- (4) Business Strategy Leisure and Service Strengthen sales and marketing in the hotel business and leverage synergies Enhance cooperation between the 13 hotels in the Keihan Group 1. Set up a shared online booking system for all Keihan Group hotels The online system will enable customers to direc
Slide 38: Numeric targets (Consolidated basis)
5. Numeric targets (Consolidated basis) (Billions of yen) FY2012 FY2015 FY2012 Results Numeric targets Results Targets vs. Targets Operating income 18.1 20.2 2.1 EBITDA 36.2 37.9 1.7 Interest-bearing debt /EBITDA multiple (Times) 9.26 8.98 -0.28 pt Goals based on FY2012 FY2015 FY2012 Results numeric
Slide 39: Keihan Group Earnings Targets and Financial Indicators
6. Keihan Group Earnings Targets and Financial Indicators Keihan Group (Consolidated basis) (Billions of yen) FY2012 FY2013 FY2014 FY2015 Results Forecast Plan Plan Operating revenue 265.6 268.9 270.8 273.7 Operating income 18.1 17.6 18.3 20.2 Ordinary income 13.5 12.2 12.2 14.2 Net income 7.0 7.4 7
Slide 40: Keihan Group Earnings Targets and Segment Information
6. Keihan Group Earnings Targets and Segment Information Keihan Group (Consolidated basis, by segment) (Billions of yen) Operating revenue Operating income FY2012 FY2013 FY2014 FY2015 FY2012 FY2013 FY2014 FY2015 Results Forecast Plan Plan Results Forecast Plan Plan Transportation 91.8 92.3 92.2 92.3