First Half of Fiscal Year Ending March 31, 2021 (FY2020) Results
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First Half of Fiscal Year Ending November 10, 2020 March 31, 2021 (FY2020) Keisei Electric Railway Co., Ltd. Results Presentation Contents 1. Consolidated Results for First Half of Fiscal Year Ending March 31, 2021 2. Consolidated Results Forecast for Fiscal Year Ending March 31, 2021 3. Business Updates 4. Future Plans 5. Reference Material Copyright © Keisei Electric Railway Co., Ltd. 1 1-1. Overview of Results [Income Statement] COVID-19 impact: Operating revenue down ¥46.5 billion ■Consolidated income statement FY2020 H1 FY2019 H1 % ■ Changes in operating revenue (by segment) Unit:(単位 million:百万円 yen) Million yen, % Change Result Result Change Operating revenue 99,501 138,007 -38,505 -27.9 138,007 2,748 -31,010 Operating income -12,015 19,117 -31,133 - -4,358 -378 -838 -2,796 (Operating - - - 99,501 income margin) 13.9 -1,871 2019/9 2020/9 Ordinary income - FY2019 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 FY2020 -19,928 28,431 -48,359 H1 Estate Service H1 サービス業 の事業 Share of profit of entities accounted - for using equity -9,415 9,770 -19,186 ■ Changes in operating income (by segment) Unit: million yen method Net profit attributable to -18,278 21,176 -39,455 - 19,117 owners of parent Depreciation 15,006 13,555 1,450 10.7 -12,015 25 51 -29,078 -245 -519 -1,218 -148 2019/9FY2019 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 2020/9FY2020 H1 Estate Service H1 サービス業 の事業 Copyright © Keisei Electric Railway Co., Ltd. 2 1-2. Overview of Results [Consolidated Balance Sheet/Consolidated Cash Flows] H1: Increased necessary cash on hand ■Consolidated Balance Sheet Unit: million yen FY2020 H1 FY2019 905,716 902,711 Million yen, % Change 900,000 Result Result Total assets 902,711 905,716 -3,004 800,000 45.4% 43.3% Interest-bearing debt outstanding* 373,692 342,342 31,350 700,000 Net assets 408,413 428,664 -20,250 Shareholders’ equity 390,521 411,030 -20,508 600,000 Equity ratio 43.3 45.4 -2.1pt 500,000 *Includes lease obligations. 411,030 390,521 400,000 ■Consolidated Cash Flows FY2020 H1 FY2019 H1 373,692 Million yen, % Change 300,000 Result Result 342,342 Cash flows from 200,000 operating activities -1,175 30,935 -32,110 Cash flows from -13,305 -20,140 6,835 investing activities 100,000 (Free cash flows) (-14,480) (10,794) (-25,275) Cash flows from 0 financing activities 24,904 -7,208 32,113 2020/3 2020/9 Total Shareholders’ Interest- Cash and cash Equity ratio equivalents 10,424 3,585 6,838 assets equity bearing debt Copyright © Keisei Electric Railway Co., Ltd. 3 1-3. COVID-19 Impact Less revenue (FY2020 H1): Around ¥46.5 billion • Transportation ¥38.0 billion (Railway: ¥20.0 billion, Bus: ¥13.0 billion, Taxi: ¥5.0 billion) • Distribution ¥4.5 billion (Department store: ¥2.6 billion, Store [e.g., convenience stores]: ¥1.6 billion, Other: ¥0.3 billion) • Other ¥4.0 billion (Hotels: ¥1.0 billion) How main businesses were affected (Apr –Sep 2020)*1 Transportation Distribution Hotels YoY change in revenue from YoY change in operating revenue YoY change in operating revenue passengers (%) (%) (%) 0 0 0 -20 -20 -20 -40 -40 -40 -60 -60 -60 -80 -80 -80 -100 -100 -100 Apr. May Jun. Jul. Aug. Sep. Apr. May Jun. Jul. Aug. Sep. Apr. May Jun. Jul. Aug. Sep. Railway Bus Taxi Store Department store Other Mito Chiba Monzen-nakacho *2 *3 *1 Pre-consolidation * 2 The store business includes convenience stores as well as supermarkets. * 3 Mito and Chiba are “city” (upscale) hotels, while Monzen-nakacho is a “stay-type” (no-frills) hotel. Copyright © Keisei Electric Railway Co., Ltd. 4 1-4. Operating Revenue (Quarterly results for FY2020 by Segment) Transportation, Distribution, and other segments increased operating revenue in Q2 FY2020 H1 FY2019 H1 Million yen, % Change % Change Result Q1 Q2 Result (Apr-Jun) (Jul-Sep) Operating revenue 99,501 46,449 53,052 138,007 -38,505 -27.9 Transportation 49,181 21,661 27,520 80,192 -31,010 -38.7 Railway 23,710 10,709 13,001 42,533 -18,823 -44.3 Bus 15,476 6,572 8,903 24,012 -8,536 -35.5 Taxi 9,994 4,379 5,614 13,645 -3,651 -26.8 Distribution 29,435 13,881 15,553 33,793 -4,358 -12.9 Real Estate 10,657 5,530 5,126 13,454 -2,796 -20.8 Leisure, Service 2,794 1,245 1,548 4,665 -1,871 -40.1 Construction 10,516 5,527 4,989 10,894 -378 -3.5 Other 3,440 1,411 2,029 4,279 -838 -19.6 Copyright © Keisei Electric Railway Co., Ltd. 5 1-5. Operating Income (Quarterly results for FY2020 by Segment) Better operating revenue in Q2 reduced operating loss FY2020 H1 FY2019 H1 Million yen, % Change % Change Result Q1 Q2 Result (Apr-Jun) (Jul-Sep) Operating income -12,015 -8,285 -3,729 19,117 -31,133 - Transportation -15,401 -10,062 -5,338 13,677 -29,078 - Railway -6,608 -4,271 -2,336 10,752 -17,360 - Bus -6,234 -4,088 -2,145 2,755 -8,989 - Taxi -2,558 -1,702 -856 169 -2,727 - Distribution 21 27 -6 266 -245 -92.1 Real Estate 4,095 2,083 2,011 4,615 -519 -11.3 Leisure, Service -1,254 -676 -578 -35 -1,218 - Construction 511 381 129 485 25 5.3 Other 35 -28 63 183 -148 -80.9 Copyright © Keisei Electric Railway Co., Ltd. 6 2-1. Assumptions for Results Forecasts Assumptions • Japan will not declare another state of emergency to contain COVID-19. ●General The steady recovery will continue in H2. ●Transportation to/from Narita Airport Narita traffic will gradually increase in the period up to June 2021, ahead of the rescheduled Tokyo Olympics. ●Commuter revenue By June 2021, commuter revenue will have recovered to 90% of normal levels. ●Non-commuter revenue other than transportation to/from Narita Airport Revenue will pick up in H2. By June 2021, it will have recovered to normal levels. * The forecasts may be revised significantly depending on actual infection rates and consumer trends. We will notify you promptly if we do revise the forecasts. Copyright © Keisei Electric Railway Co., Ltd. 7 2-2. Overview of Results Forecast (Year on Year) Interest-bearing debt will remain at Q2-end level FY2020 FY2019 % ■ Changes in operating revenue (by segment) Unit: million yen Million yen, % Change Forecast Result Change Operating revenue 219,100 274,796 -55,696 -20.3 274,796 651 5,310 Operating income -13,700 28,320 -42,020 - -48,289 -3,824 -1,377 -6,721 (Operating - - - -1,445 219,100 income margin) 10.3 Ordinary income -26,700 41,705 -68,405 - 2020/3FY2019 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 2021/3FY2020 Estate Service (forecast) サービス業 の事業 (予想) Share of profit of entities accounted - for using equity -15,100 13,950 -29,050 ■ Changes in operating income (by segment) Unit: million yen method Net profit attributable to -26,200 30,110 -56,310 - owners of parent 28,320 Depreciation 30,200 29,085 1,114 3.8 230 -13,700 Interest-bearing -38,721 -489 -146 debt outstanding* 375,000 342,342 32,657 9.5 -1,959 -817 -116 2020/3 2021/3 EBITDA multiple* 23.3 6.0 17.3pt - FY2019 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 FY2020 Estate Service (forecast) サービス業 の事業 * EBITDA multiple = Interest-bearing debt outstanding / (Operating income + Depreciation) Interest-bearing debt outstanding includes lease obligations. Copyright © Keisei Electric Railway Co., Ltd. 8 2-3. Forecasted Railway Revenue Forecasts for commuter/non-commuter revenue (non-consolidated) Demand will gradually recover in run-up to Tokyo Olympics in 2021 FY2020 forecasts for railway revenue (YoY changes*) (%) 0.0 - 20.0 - 40.0 - 60.0 - 80.0 - 100.0 Apr. May Jun. Jul. Aug. Sep. H2 Non-commuters: To/from Narita Non-commuters: Other Commuters *Left shows H1 results, right shows H2 forecasts. Forecasted changes for Feb & Mar 2021 are compared with Feb & Mar 2019 to provide a pre-COVID comparison. Copyright © Keisei Electric Railway Co., Ltd. 9 2-4. Reducing Operating Expenses and Investment Less opex in Transportation Less investment FY2020 FY2019 FY2020 FY2019 Billion yen Change Billion yen Change Forecast Result Forecast Result Transportation 121.6 136.5 -14.9 Total Investment 34.9 53.2 -18.3 Railway 60.5 66.4 -5.9 Transportation 23.8 35.3 -11.5 Bus 37.3 43.0 -5.7 Railway 20.0 24.9 -4.9 Taxi 23.8 27.1 -3.3 Bus 2.8 7.6 -4.8 Taxi 1.0 2.8 -1.8 * The FY2020 forecasts and FY2019 results exclude the impact of changes in the scope of consolidation. Distribution 1.5 1.1 0.4 Real Estate 9.3 16.4 -7.1 Other 0.3 0.4 -0.1 Copyright © Keisei Electric Railway Co., Ltd. 10 2-5. Progress of Business Policies ■ Each segment is taking action to adapt to the shifting business landscape. Transportation Real Estate • Attracting domestic travelers • Sold new apartments for sale Launched domestic tour packages linked with Narita • Acquired and developed profitable rental properties flights • Attracted retail tenants to spaces under elevated railway Ran ad campaign for Skyliner in provincial cities tracks Ran excursion train service • Worked with local governments to tackle problem of • Generating new demand abandoned homes Added extra station stop on Skyliner route Entered partnership with Sumida and Katsushika wards Launched special Liner service • Promoted BRT business Distribution Leisure, Service • Increased no.