Long-Term Vision 2020 and Group Medium-Term Management Plan (FY2015-FY2017)
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Long-Term Vision 2020 and Group Medium-Term Management Plan (FY2015-FY2017) April 30, 2015 Contents Summary of the Medium-Term Management Plan 3 (FY2012-FY2014) Perspective on the Business Environment 4 New Business Planning Structure 5 Long-Term Vision 2020 6 Medium-Term Management Plan (FY2015-FY2017) 8 Principal Measures in the Medium-Term Management 11 Plan (FY2015-FY2017) Numerical Plan in the Medium-Term Management 21 Plan (FY2015-FY2017) Dividend Policy 23 Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.2 Summary of the Medium-Term Management Plan (FY2012-FY2014) *ROE: Net income / Net assets (excluding net unrealized gain on securities) Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.3 Perspective on the Business Environment Business conditions in Japan are expected to remain stable until the 2020 Tokyo Olympics. An increase in the number of inbound tourists is expected. An effort will be made to increase the competitiveness of the railway business through completion of multiple double tracks. There is concern that the population along the Odakyu line will peak and begin to decline. Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.4 New Business Planning Structure Group Management Principle Long-Term Vision 2020 Group Medium-Term Management Plan Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.5 Long-Term Vision 2020 Group Management Principle Long-Term Vision 2020 Group Medium-Term Management Plan Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.6 Long-Term Vision 2020 Group Management Principle Long-Term Vision 2020 Group Medium-Term Management Plan Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.7 Medium-Term Management Plan (FY2015-FY2017) Group Management Principle FY2014 FY2017 FY2020 (Actual) (Plan) (Target) Long-Term Vision Revenue from 546.8 2020 518.7 600.0 operations billion yen billion yen billion yen EBITDA 96.5 94.6 100.0 billion yen billion yen billion yen Group Medium-Term IBD/EBITDA Management Plan 7.6 7.6 7.0 ratio times times times (maximum) Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.8 Medium-Term Management Plan (FY2015-FY2017) Group Management Principle Long-Term Vision 2020 Group Medium-Term Management Plan Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.9 Medium-Term Management Plan (FY2015-FY2017) Group Management Principle Long-Term Vision 2020 Group Medium-Term Management Plan Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.10 Principal Measures in the Medium-Term Management Plan (FY2015-FY2017) Theme I Maximize Group revenue along the Odakyu Line after completion of multiple double tracks. FY2015 FY2016 FY2017 Construction of a tunnel Completion of multiple ● for local train tracks double tracks Station building Completion of Higashi-Kitazawa and ● construction Setagaya-Daita Station buildings Keio Inokashira Line bridge replacement Higashi-Kitazawa Station building Construction of a tunnel for local train tracks Start of mutual through operation on three lines with Tokyo Metro Chiyoda Line and JR Joban Line Local service (diagram revision) Conversion to ten-carriage local trains on suburban sections Consideration of a strategic diagram after completion of multiple double tracks Information dissemination centering on publicity of the benefits of multiple double tracks to promote inflow and outflow prevention Linkage with bus routes aimed at network improvement Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.11 Principal Measures in the Medium-Term Management Plan (FY2015-FY2017) Theme I Maximize Group revenue along the Odakyu Line after completion of multiple double tracks. ■ Urban area and commuting area expansion from shortening of travel times ■ Improved access to Shinjuku and eastern Tokyo ■ Increased comfort from relief of congestion Stations averaging more than 100,000 boarding/alighting Karakida passengers per day Multiple double Odawara Hon-Atsugi Ebina Sagami-Ono track section Shinjuku Machida Shin-Yurigaoka Noborito Shimo- Yoyogi- Katase-Enoshima Fujisawa Yamato Kitazawa Uehara Tokyo Metro Chiyoda Line Odakyu Line stations averaging more than 100,000 Stations averaging more than 100,000 boarding/alighting passengers per boarding/alighting passengers per day (FY2014 actual) day by distance from the starting station Odakyu Other operator (10,000 *Starting from Shinjuku persons) (Excluding starting stations and stations located within 10 operating km from starting stations) Boarding / Prepared by Odakyu from 50 Operating information on railway operator Station Name alighting Odakyu has many stations with more than 100,000 kilometers* websites (FY2013 actual) passengers (Lines compared) boarding/alighting passengers even among stations located far from the starting station. Yokohama - Shinjuku 488,021 ・Tokyu Denentoshi Line 40 3.5 km Yoyogi-Uehara 243,222 ・Tokyu Toyoko Line ・Keio Line Machida 4.9 km Shimo-Kitazawa 114,669 ・Keikyu Main Line 30 15.2 km Noborito 159,445 ・Seibu Shinjuku Line ・ Noborito 21.5 km Shin-Yurigaoka 123,894 Seibu Ikebukuro Line Fujisawa ・ Tobu Tojo Line Ebina Sagami-Ono Shin-Yurigaoka 20 30.8 km Machida 289,013 ・Tobu Isezaki Line 32.3 km Sagami-Ono 126,479 ・Keisei Main Line ・ 39.9 km Yamato 114,295 Sotetsu Line 10 Hon-Atsugi 42.5 km Ebina 135,861 Yamato 45.4 km Hon-Atsugi 147,887 Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.0 12 55.4 km Fujisawa 159,074 (km) 60 50 40 30 20 10 Principal Measures in the Medium-Term Management Plan (FY2015-FY2017) Theme I Maximize Group revenue along the Odakyu Line after completion of multiple double tracks. Multilingualization of the Hakone Freepass pamphlet Planning of shops Information dissemination using overseas media International travel fair Consideration of special railway for inbound tourists Participation in overseas international travel fairs tickets for foreigners Campaigns (Chinese New Year, China’s National Day holiday, etc.) Web and SNS content enhancement Information dissemination using overseas media No. of Odakyu Sightseeing Service Center users *1 + 37.3 % Record level (FY2014 actual) Enhancement of Odakyu Sightseeing Service Center Sales of the Hakone Freepass by overseas travel agents Interpreting service multilingualization and area expansion Renewal of English-language support on Odakyu Free Wi-Fi introduction (area expansion) e-Romancecar *2 Improvement of the customer service level, including Closer cooperation with external travel agents service in foreign languages Muslim-friendly services Expansion of tax-free service Odakyu Sightseeing Closer cooperation with Service Center, external travel agents Shinjuku *1 Purchasers of railway tickets, etc. Underlining indicates planned new measures. Copyright 2008 Odakyu Electric Railway*2 Limited Co.,Ltd. express ticketAll purchasingRights Reserved. site 13 Principal Measures in the Medium-Term Management Plan (FY2015-FY2017) Theme I Maximize Group revenue along the Odakyu Line after completion of multiple double tracks. Large-scale capital expenditures of approx. 20 billion yen Recognition of the winter event Shonan-no-houseki (Jewel of Shonan) as one of the Hakone Yumoto Station building improvement Ropeway renewal three major illumination events in the Kanto area (Enoshima SeaCandle: observation Deployment of new train carriages on Hakone Deployment of new lighthouse) Tozan Railway sightseeing boat Holding of events in Enoshima year round Renewal of hotels Etc. Tourism partnership agreement tie-up with Taiwan Railway (inbound tourism initiative) Shonan FUJISAWA Concierge opened Shonan-no-Hoseki Shonan FUJISAWA Concierge New carriages on Hakone Tozan Railway New sightseeing boat Ropeway renewal No. of Hakone Freepass tickets sold in FY 2014 (YoY change) 0.87 Million tickets +15.4% *New ticket sales record November 2015 (planned) December 2015 (planned) No. of Enoshima-Kamakura Freepass tickets sold in FY 2014 (YoY change) Opening of a commercial facility Opening of a Japanese café *New ticket sales record (Hakone Tozan Vierge vacant site) and traditional souvenir shop 0.2 Million tickets +15.1% for the current format(1day pass) (Hakone-machi Port) Consideration of deployment of new train carriages Enhancement of information dissemination on “Enokama-Navi”* Consideration of deployment of new ropeway gondolas Partial renewal of Enoshima events Consideration of new boat construction * Sightseeing website of Enoshima / Kamakura area Consideration of deployment of new buses at Hakone Tozan Bus Enhancement of high-speed bus transportation (between central Tokyo and Hakone) Copyright 2008 Odakyu Electric Railway Co.,Ltd. All Rights Reserved.14 Principal Measures in the Medium-Term Management Plan (FY2015-FY2017) Theme I Maximize Group revenue along the Odakyu Line after completion of multiple double tracks. FY2015 FY2016 FY2017 Master plan formulation (planned) Completion of foundation work (planned) Start of building construction (planned) Planned Area between the (Other main Odakyu-owned properties) 1) Vina Walk Lalaport site stations 2) Vina Front Opened: 2002 Opened: 2014 (45,000 m2) Rentable space: Approx. 65,000 m2 JR Ebina (including Vina Front) Station Odakyu Ebina Station ① 〔 〕 ② Principal future projects by other parties Autumn 2015: Opening of Lalaport Ebina (planned) FY 2018: Opening of JR East/Sotetsu direct service (planned) ① FY 2019: Opening of Tokyu/Sotetsu direct service (planned)