First Half of Fiscal Year Ending March 31, 2020 (FY2019) November 14, 2019 Results Presentation Keisei Electric Railway Co., Ltd
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First Half of Fiscal Year Ending March 31, 2020 (FY2019) November 14, 2019 Results Presentation Keisei Electric Railway Co., Ltd. Contents 1. Consolidated Results for First Half of Fiscal Year Ending March 31, 2020 2. Consolidated Results Forecast for Fiscal Year Ending March 31, 2020 3. Progress in E4 Plan 4. Reference Material Copyright © Keisei Electric Railway Co., Ltd. 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. FY2019 H1 FY2018 H1 % ■ Changes in operating revenue (by segment) Unit: million yen Million yen, % Change Result Result Change 3,353 327 Operating revenue 138,007 129,916 8,090 6.2 1,881 367 -514 3,078 Operating income 19,117 17,746 1,371 7.7 -403 138,007 (Operating income margin) 13.9 13.7 0.2pt - 129,916 Ordinary income FY2018FY2018 H1TransportationDistributionDistribution Real Leisure,Leisure, Construction OtherOther EliminationFY2019FY2019 H1 28,431 26,890 1,541 5.7 H1 Estate ServiceService H1 Share of profit of entities accounted for 9,770 9,799 -28 -0.3 using equity method ■ Changes in operating income (by segment) Unit: million yen Net profit attributable to owners of parent 21,176 20,520 655 3.2 277 67 1,165 -86 Depreciation 13,555 12,656 899 7.1 -46 151 19,117 -156 17,746 FY2018FY2018 TransportationH1 TransportationDistributionDistributionRealReal Estate Leisure,Leisure, Construction Construction OtherOther EliminationEliminationFY2019FY2019 H1 H1 Estate ServiceService H1 Copyright © Keisei Electric Railway Co., Ltd. 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 FY2018 Million yen, % Change 900,000 868,934 Result Result 853,025 Total assets 868,934 853,025 15,908 800,000 Interest-bearing debt outstanding* 320,150 320,043 107 700,000 Net assets 423,541 402,901 20,639 45.7% 47.1% Shareholders’ equity 409,302 389,464 19,837 600,000 Equity ratio 47.1 45.7 1.4pt 500,000 * Includes lease obligations. 389,464 409,302 400,000 ■ Consolidated Cash Flows FY2019 H1 FY2018 H1 300,000 Million yen, % Change Result Result 320,043 320,150 Cash flows from 200,000 operating activities 30,935 21,846 9,089 Cash flows from investing activities -20,140 -33,387 13,246 100,000 (Free cash flows) (10,794) (-11,541) (22,336) Cash flows from 0 financing activities -7,208 12,661 -19,870 2019/3 2019/9 Cash and cash Total Shareholders’ Interest- Equity equivalents 3,585 1,120 2,465 assets equity bearing debt ratio Copyright © Keisei Electric Railway Co., Ltd. 3 2-1. Overview of Results Forecast (Year on Year) Operating revenue, and operating income are forecast to reach record highs. FY2019 Unit: million yen FY2018 % ■ Changes in operating revenue (by segment) Million yen, % Revised Change Result Change Forecast 4,636 497 1,096 1,762 2,393 Operating revenue 285,400 261,553 23,846 9.1 12,795 665 Operating income 32,300 31,608 691 2.2 285,400 (Operating income 261,553 margin) 11.3 12.1 -0.8pt - 2019/3 2020/3 Ordinary income FY2018 Transportation運輸業 流通業Distribution不動産業Real レジャー・Leisure, Construction建設業 その他Other Elimination消去 FY2019 48,900 50,720 -1,820 -3.6 Estate Service (予想)(forecast) サービス業 の事業 Share of profit of entities accounted for 17,700 20,211 -2,511 -12.4 using equity method ■ Changes in operating income (by segment) Unit: million yen Net profit attributable 1,572 to owners of parent 37,700 38,642 -942 -2.4 -7 -466 Depreciation 29,000 25,603 3,396 13.3 52 -73 -37 Interest-bearing -348 debt outstanding* 334,400 320,043 14,356 4.5 32,300 31,608 EBITDA multiple* 5.5 5.6 -0.1pt - 2019/3 2020/3 * EBITDA multiple = Interest-bearing debt outstanding / (Operating income + Depreciation) FY2018 Transportation Distribution流通業 Real Leisure,レジャー・ Construction その他Other Elimination FY2019 Estate Service (予想)(forecast) Interest-bearing debt outstanding includes lease obligations. サービス業 の事業 Copyright © Keisei Electric Railway Co., Ltd. 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 FY2019 Unit: million yen % ■Changes in operating revenue (by segment) Million yen, % Revised Initial Change Change Forecast Forecast 800 1,500 0 4,700 Operating revenue 285,400 280,300 5,100 1.8 -600 -900 -400 Operating income 32,300 32,300 - - 285,400 (Operating income 280,300 margin) 11.3 11.5 -0.2pt - 当初予想Initial Transportation運輸業 Distribution流通業 不動産業Real Leisure,レジャー・ Construction建設業 その他Other Elimination消去 今回予想Revised Ordinary income 48,900 45,500 3,400 7.5 Forecast Estate Service Forecast サービス業 の事業 Share of profit of entities accounted for 17,700 14,500 3,200 22.1 using equity method ■Changes in operating income (by segment) Unit: million yen 800 Net profit attributable 0 0 0 to owners of parent 37,700 32,700 5,000 15.3 -100 Depreciation 29,000 28,200 800 2.8 -500 Interest-bearing 32,300 debt outstanding* 334,400 314,500 19,900 6.3 -200 32,300 EBITDA multiple* 5.5 5.2 0.3pt - 当初予想Initial Transportation運輸業 Distribution流通業 不動産業Real Leisure,レジャー・ Construction建設業 その他Other Elimination消去 今回予想Revised * EBITDA multiple = Interest-bearing debt outstanding / (Operating income + Depreciation) Forecast Estate Service Forecast Interest-bearing debt outstanding includes lease obligations. サービス業 の事業 Copyright © Keisei Electric Railway Co., Ltd. 5 Contents 1. Consolidated Results for First Half of Fiscal Year Ending March 31, 2020 2. Consolidated Results Forecast for Fiscal Year Ending March 31, 2020 3. Progress in E4 Plan 4. Reference Material Copyright © Keisei Electric Railway Co., Ltd. 6 3-1. Medium-Term Management Plan: E4 Plan - Outline ■ Numerical targets E4 Plan for the final fiscal year (FY2021) OPERATING OPERATING OPERATING REVENUE INCOME INCOME MARGIN ¥290 BILLION ¥33 BILLION 11.3% OR MORE OR MORE OR HIGHER INTEREST-BEARING DEBT OUTSTANDING < ¥320 BILLION (EBITDA MULTIPLE: < 5.1 TIMES) Achieving growth Expanding 収益規模の拡大earnings Establishing a revenue base for growth Investment for the future Developing a base for growth Improving financial soundness E1・E2 (FY2010 - FY2015) E3 (FY2016 - FY2018) E4 (FY2019 - FY2021) Copyright © Keisei Electric Railway Co., Ltd. 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% Profitable rental ■ Acquisition of Wind Bell Plaza, Keisei Koiwa (September properties 2019) ■ Acquisition of Southern Court Funabashi (August 2019) 20% ■ Design of rental apartment building in Moto-Asakusa, 65% Taito-ku Improvements to ■ 1 extra Skyliner train (September 2019) airport links ■ Acquisition of land to expand Sougo depot Profitable rental properties ■ Teito Motor Transportation’s acquisition of Sanshin Taxi and Improvements to airport links Omori Taxi (April 2019) M&A, startups Bid to take over Kanto Railway (October 2019) M&A, startups ■ ■ Acquisition of Shikida Building Industry (April 2019) Copyright © Keisei Electric Railway Co., Ltd. 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 Copyright © Keisei Electric Railway Co., Ltd. 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 − Tomy trainsets tied with our 110th anniversary − Global Studies students volunteered as station guides We worked with Tomy to hold one-off summer for overseas visitors events at Tateishi Station commemorating Plarail’s 60th anniversary Wayo students giving directions The uniform • Collaborated with Funabashi’s municipal council and shopping district − We participated in undertakings to commemorate Kaijin Station’s centenary, including designing a station signboard featuring the local mascot and “Keisei Tateishi Plarail Station” at Tateishi Station’s concourse organizing an orienteering activity. An orienteering activity: “Get all 5 station stamps” Centenary ceremony Station signboard Copyright © Keisei Electric Railway Co., Ltd. 10 3-2. Strategy 1: Engage with local stakeholders to increase our profile Enhancing lifestyle services Energizing Chiba area • Attracted nursery school tenants to properties under • We are reconstructing the building outside the elevated railway tracks western exit of Chiba-Chuo station (to be completed in FY2021). − The 8-story complex is directly connected to Chiba- Chuo Station − The complex will house retail stores, offices, and hotels. Manabi no Mori Kinoshita Nursery: Tampopo Nursery Nursery: Nishi Nippori Aoto Yahiro-en ・ We are opening more convenience store locations. • Offer for-sale apartments − “Sungrande The Residence Chiba”