First Half of Fiscal Year Ending March 31, 2020 (FY2019) November 14, 2019 Results Presentation Keisei Electric Railway Co., Ltd

First Half of Fiscal Year Ending March 31, 2020 (FY2019) Results Presentation

November 14, 2019
Keisei Electric Railway Co., Ltd.

Contents

1. Consolidated Results for First Half of
Fiscal Year Ending March 31, 2020

2. Consolidated Results Forecast for

3. Progress in E4 Plan 4. Reference Material

1

1-1. Overview of Results (Year on Year)

Operating revenue, operating income, ordinary income, and net profit attributable to owners of parent posted record highs.

Unit: million yen

■ Changes in operating revenue (by segment)

FY2019 H1 FY2018 H1

%

Million yen, %

Change

Result

Change

327

3,353

Operating revenue Operating income

138,007

129,916

8,090

1,371 0.2pt 1,541
-28
6.2 7.7

－

367
1,881

-514

3,078

19,117
13.9
17,746
13.7

-403

138,007

(Operating income margin)

129,916

Transportation Distribution

FYF2Y0201188H1

H1

Distribution Real

Estate
LLeeiissuurree, , Construction OOththeerr EliminationFY2F0Y120919H1 Service

Service

Ordinary income

28,431
9,770
21,176
26,890
9,799
20,520
5.7
-0.3
3.2

H1

Share of profit of entities accounted for using equity method

Unit: million yen

■ Changes in operating income (by segment)

Net profit attributable to owners of parent

67
277

655

1,165

-86

Depreciation

-46

13,555

12,656

899

7.1

151
19,117

-156

17,746

FY2018

Real

Leisure, Construction Other Elimination FY2019

FY2018 THr1ansportatDioisntributioRneal EstateLeisureC, onstruction Other EliminationFY2019 H1

H1

Estate

Service

H1

Service

2

1-2. Overview of Results [Consolidated Balance Sheet/Consolidated Cash Flows]

• The equity ratio increased due to an increase in shareholders’ equity.

■ Consolidated Balance Sheet

Unit: million yen

FY2019 H1
Result
FY2018 Result

Million yen, %

Change

900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000
0

868,934

47.1%

853,025

45.7%

Total assets

868,934 320,150 423,541 409,302
853,025 320,043 402,901 389,464
15,908

Interest-bearing debt outstanding*

107
20,639 19,837

Net assets Shareholders’ equity

Equity ratio

47.1

45.7

1.4pt

* Includes lease obligations.

409,302
389,464

■ Consolidated Cash Flows

FY2019 H1

Million yen, %

FY2018 H1
Result
Change
320,150
320,043
Result

Cash flows from operating activities

30,935

21,846

-33,387
(-11,541)
12,661
9,089
13,246

Cash flows from investing activities

-20,140

(Free cash flows)

(10,794)

(22,336)

-19,870

Cash flows from financing activities

-7,208

2019/3

2019/9

Total assets
Shareholders’ equity
Interest- bearing debt
Equity ratio

Cash and cash equivalents

3,585

1,120

2,465

3

2-1. Overview of Results Forecast (Year on Year)

Operating revenue, and operating income are forecast to reach record highs.

FY2019 Revised Forecast

Unit: million yen

■ Changes in operating revenue (by segment)

FY2018 Result
%

Million yen, %

Change
Change

1,096

4,636
497

1,762
2,393

285,400
32,300
11.3
261,553
31,608
12.1
23,846
691
9.1 2.2

665
12,795

285,400
261,553

－

-0.8pt -1,820 -2,511
-942

2019/3

2020/3

FY2018

Real

運輸業流通業不動産業ﾚｼﾞｬｰ･建設業その他

消去

Ordinary income

48,900 17,700 37,700
50,720 20,211 38,642
-3.6
-12.4
-2.4

Estate

Service

ｻｰﾋﾞｽ業

(forecast)

（予想）
の事業

Unit: million yen

■ Changes in operating income (by segment)

1,572

-7
-466
-73
-37

52

Depreciation

29,000
334,400
5.5
25,603
320,043
5.6
3,396
14,356
-0.1pt
13.3
4.5

－

-348

32,300
31,608

EBITDA multiple*

2019/3 _{Transportation}

2020/3

Distribution

流通業

FY2018

Real

ﾚｼﾞｬｰ･

その他

* EBITDA multiple = Interest-bearing debt outstanding / (Operating income + Depreciation) Interest-bearing debt outstanding includes lease obligations.

Estate

Service

(forecast)

（予想）

の事業

4

2-2. Overview of Results Forecast (Comparison with Initial Forecast)

Kanto Railway became consolidated subsidiary along with its 14 subsidiaries, increasing op. revenue by ¥8,200 million and op. income by ¥400 million

FY2019 Revised Forecast
FY2019 Initial Forecast

Unit: million yen

■Changes in operating revenue (by segment)

%

Million yen, %

Change
Change

800
0
1,500

4,700

285,400
32,300
11.3
280,300
32,300
11.5
5,100

－

1.8

－

-600
-900
-400

285,400

280,300

－

-0.2pt 3,400 3,200 5,000

Initial

Real

Leisure, Construction Other Elimination Revised

当初予想運輸業流通業不動産業ﾚｼﾞｬｰ･建設業その他

消去今回予想

Ordinary income

48,900 17,700 37,700
45,500 14,500 32,700
7.5

Forecast

Estate

Service

Forecast

の事業

22.1 15.3

■Changes in operating income (by segment)

Unit: million yen

800

0

-100

Depreciation

29,000
334,400
5.5
28,200
314,500
5.2
800
19,900
0.3pt
2.8 6.3

－

-500

32,300

-200

32,300

EBITDA multiple*

当初予想運輸業流通業不動産業ﾚｼﾞｬｰ･建設業その他

消去今回予想

Initial

Real

Leisure, Construction Other Elimination Revised

* EBITDA multiple = Interest-bearing debt outstanding / (Operating income + Depreciation) Interest-bearing debt outstanding includes lease obligations.

Forecast

Estate

Service

Forecast

の事業

5

Contents

1. Consolidated Results for First Half of

2. Consolidated Results Forecast for

3. Progress in E4 Plan

4. Reference Material

6

3-1. Medium-Term Management Plan: E4 Plan － Outline

■ Numerical targets E4 Plan for the final fiscal year (FY2021)

OPERATING REVENUE
OPERATING
INCOME
OPERATING
INCOME MARGIN

¥290 BILLION

OR MORE

¥33 BILLION

OR MORE

11.3%

OR HIGHER

INTEREST-BEARING DEBT OUTSTANDING

< ¥320 BILLION

(EBITDA MULTIPLE: < 5.1 TIMES)

Achieving growth

Expanding earnings

収益規模の拡大

Establishing a revenue base for growth

Investment for the future

Developing a base for growth

Improving financial soundness

E4 (FY2019 - FY2021)

E1・E2 (FY2010 - FY2015)
E3 (FY2016 - FY2018)

7

3-1. Medium-Term Management Plan: E4 Plan － Strategic Investment

60% of the ¥50 bn strategic investment fund has now been allocated

About the strategic investment fund...
For E4 Plan, a strategic investment of 50 billion yen was provided for expanding revenue over the medium-to-long term.

Breakdown of confirmed
Key projects investments

■ Keisei Richmond Hotel: Second location ■ Remodeling of building outside the western exit of Chiba-
Chuo station

15%
20%

■ Acquisition of Wind Bell Plaza, Keisei Koiwa (September

Profitable rental properties

2019)
■ Acquisition of Southern Court Funabashi (August 2019) ■ Design of rental apartment building in Moto-Asakusa,
Taito-ku

65%

■ 1 extra Skyliner train (September 2019) ■ Acquisition of land to expand Sougo depot

Improvements to airport links

■ Teito Motor Transportation’s acquisition of Sanshin Taxi and
Omori Taxi (April 2019)

Profitable rental properties Improvements to airport links M&A, startups

M&A, startups

■ Bid to take over Kanto Railway (October 2019) ■ Acquisition of Shikida Building Industry (April 2019)

8

3-2. Medium-Term Management Plan: E4 Plan － Basic Strategies

Strategy 1 Engage with local stakeholders to increase our profile Strategy 2 Manage the group more effectively and strengthen corporate governance

Strategy 3 Cultivate inbound tourism market Strategy 4 Expand earnings by strengthening existing businesses Strategy 5 Ensure safety and security and improve the quality of services Strategy 6 Establish new growth vision

9

3-2. Strategy 1: Engage with local stakeholders to increase our profile

 More collaboration with local authorities and schools

• Collaborated with Katsushika ward and Tomy

• Collaborated with Wayo Women’s University

− Global Studies students volunteered as station guides
− Tomy trainsets tied with our 110th anniversary

We worked with Tomy to hold one-off summer events at Tateishi Station commemorating Plarail’s 60th anniversary for overseas visitors