Hankyu Hanshin Holdings Group Results Briefing Materials for Fiscal 2021 (Fiscal Year Ended 31St March 2021)
Total Page:16
File Type:pdf, Size:1020Kb
Hankyu Hanshin Holdings Group Results Briefing Materials for Fiscal 2021 (fiscal year ended 31st March 2021) May 21, 2021 Hankyu Hanshin Holdings, Inc. 9042 https://www.hankyu-hanshin.co.jp/en/ Contents Ⅰ. Performance Highlights for Fiscal 2021 (fiscal year ended 31st March 2021) ・・・ 2 Ⅱ. Future Strategy (1) Medium-Term Management Plan and Current Strategy・・・ 34 (2) Update of Long-Term Vision ・・・ 49 Ⅲ. Forecast for fiscal 2022 (fiscal year ending 31st March 2022) ・・・ 53 Ⅳ. Sustainable Business Practices ・・・ 65 Ⅴ. Referential Materials (1) Progress in Each Project ・・・ 76 (2) Other ・・・ 85 Business forecasts and other projections herein are based on information available at present and logical assessments and do not represent any promise by the Company. The actual results may differ significantly from these projections due to various factors. 1 Ⅰ. Performance Highlights for Fiscal 2021 (fiscal year ended 31st March 2021) 2 Consolidated Statements of Income(Summary) FY2021 Results FY2020 Results Change Consolidated Subsidiaries 95 companies 93 companies +2 (4 companies increase, 2 companies decrease) Equity-Method Affiliates 11 companies 11 companies ±0 Total 106 companies 104 companies +2 COVID-19 impact FY2021 FY2020 (¥ billion) Results Results Revenue from operations -215.2 -22.0 Operating income -104.2 -15.4 FY2021 FY2020 Change Remarks (¥ million) Results Results Revenue from operations -193,750 (-25.4%) 568,900 762,650 For details, please see next page Operating income 2,066 95,170 -93,103 (-97.8%) Non-operating income -3,759 3,572 7,331 Equity in income/loss of affiliates -5,011 Non-operating expenses 13,262 13,706 -443 Ordinary income -7,623 88,795 -96,418 (ー) Employment adjustment Extraordinary income 13,167 6,038 +7,129 subsidies +8,715 COVID-19-related losses +19,382 Extraordinary loss 46,557 8,086 +38,470 Structural reform-related loss +18,618 Net income attributable to -36,702 54,859 -91,562 (ー) Tax expense -36,312 owners of the parent (Reference) FY2021 Results FY2020 Results We have applied the note “Audit Consideration related to Change COVID-19 Part 4” (JICPA, April 22, 2020) to operations and events that we suspended/cancelled at the request of Depreciation and amortization 55,733 56,542 -808 authorities. Specifically, we have recognized as extraordinary Financial balance ① - ② -7,783 -7,718 -64 loss all fixed costs incurred during the suspension of said operations and all costs directly associated with the Interest and dividend income① 1,102 1,548 -446 preparation and cancellation of said events. Interest expense② 8,885 9,267 -381 3 Consolidated Statements of Income (Breakdown for each business segment) [Key results in current period] Revenues and income fell significantly with most business segments hit hard by COVID- 19 (details shown on page 6). (¥ million) Revenue from operations Operating income FY2021 FY2020 FY2021 FY2020 Results Results Change Results Results Change COVID-19 impact -5.2 -65.3 billion yen -4.7 billion yen billion yen Urban Transportation 156,926 227,176 -70,250 -49.5 -5,108 40,056 -45,164 -1.0 billion yen -0.9 billion yen billion yen Real Estate -27.7 billion yen 188,360 236,046 -47,686 -11.3 28,923 41,510 -12,586 billion yen -3.0 -15.6 billion yen -36.2 billion yen Entertainment 42,192 74,020 -31,828 billion yen -2,258 11,695 -13,954 -4.4 billion yen Information and 58,083 58,576 -492 5,556 5,598 -42 Communication Technology -4.9 -3.1 billion yen -10.0 billion yen Travel -28.7 billion yen 11,960 33,766 -21,805 billion yen -7,397 232 -7,630 International 85,552 76,186 +9,366 2,308 170 +2,137 Transportation -5.2 -3.3 billion yen -18.5 billion yen Hotels -51.0 billion yen 19,145 60,280 -41,135 billion yen -17,927 -3,142 -14,784 Other 49,840 42,486 +7,353 1,881 2,381 -500 Adjustment -43,160 -45,887 +2,727 -3,911 -3,332 -578 -215.2 billion yen -104.2 Total 568,900 762,650 -193,750 billion yen 2,066 95,170 -93,103 -22.0 -15.4 billion yen billion yen 4 Quarterly Consolidated Statements of Income by Segment From left to right: Q1–Q4 FY2021 (unconsolidated) Revenue from operations (¥ billion) Total 62.5 174.9 153.0 43.8 45.4 129.7 40.7 40.8 42.3 38.2 111.3 31.5 27.1 18.8 21.2 18.7 18.5 13.8 14.013.4 11.2 12.5 13.1 7.2 7.8 4.8 4.4 3.5 3.8 2.1 0.1 0.8 Urban Real Estate Entertainment Information and Travel International Hotels Transportation Communication Transportation Technology Operating income Total 9.8 (¥ billion) (単位︓億円) 7.9 5.9 5.3 9.9 6.9 3.3 1.4 2.3 1.9 0.6 1.3 1.0 0.8 1.0 0.0 0.1 0.1 0.5 -0.0 -1.5 -0.7 -1.4 -2.6 -3.6 -4.4 -4.3 -4.9 -5.2-4.8 -13.2 -7.2 Urban Real Estate Entertainment Information and Travel International Hotels Transportation Communication Transportation Technology 5 How COVID-19 Impacted Each Businesses(FY2021 Results) ■COVID-19 impact in each business <Breakdown for each business segment> (¥ billion) Urban Total Transportation Real Estate Entertainment Travel Hotels Revenue from operations -215.2 -65.3 -27.7 -36.2 -28.7 -51.0 Operating income -104.2 -49.5 -11.3 -15.6 -10.0 -18.5 Ordinary income -103.9 -49.5 -10.9 -15.7 -9.9 -18.7 Extraordinary income ※1 8.8 0.6 0.5 0.8 4.4 2.6 Extraordinary loss ※2 19.4 1.3 2.9 4.7 5.6 5.1 Income before income -114.4 -50.2 -13.3 -19.6 -11.0 -21.2 taxes ※1 Employment adjustment subsidies etc. ※2 COVID-19-related losses ■ How COVID-19 impacted each business Urban ・Less revenue with fewer people going out during SOE and drop in inbound tourism Transportation ・Shopping facilities closed temporarily or operated with reduced hours; domestic condominium Real Estate business suspended sales/marketing activities ・Fewer pro baseball regular season games; Takarazuka Revue performances cancelled; Entertainment restrictions on events Travel ・Domestic and international tours suspended; surge in cancellations ・Temporary closures of some hotels, Drop in inbound and domestic demand hit by Hotels travel/outing and banquet cancellations 6 Response to COVID-19 Pandemic Impact(FY2021) ■Recovery in bottom line and cash flow • Bottom line: To reduce costs, revenue-starved businesses scaled back their operations as much as possible※1, while businesses in general reduced, or deferred payment of, expenses (e.g., repair and advertising). Meanwhile, we reduced fixed expenses and applied for government relief programs (e.g., employment adjustment subsidies). Consequently, the result for profit and loss was better than initially expected. ※1 Reduced some bus services, closed some hotels, etc. • Cash flow: We reduced or deferred CapEx※2 (especially that for maintenance and renewal). We also controlled growth investment (investment in for-sale property, equity investments). ※2 We cut the CapEx budget by ¥40.0 billion from the initial (pre-pandemic) level. Nonetheless, actual capital expenditure for fiscal 2021 came to ¥108.5 billion, ¥27.4 billion more than the previous year. This increase was the result of mounting costs of ongoing large projects (e.g., Umeda 1-1 Project, project to rebuild Kobe Hankyu Building). 7 COVID-19 impact FY2021 FY2020 Urban Transportation Results (¥ billion) Results Results Revenue from operations -65.3 -5.2 Operating income -49.5 -4.7 Big decrease in revenue and income: In railway and automobile businesses, COVID-19 caused huge decline in ridership. (¥ million) FY2021 FY2020 Change % Results Results Revenue from operations 156,926 227,176 -70,250 -30.9% -5,108 40,056 -45,164 ― Operating income ※ (-5,829) ※ (-45,885) (―) [Breakdown by type of business] ※ Parenthesized figures indicate reversals of COVID-19-related losses and subsidies recorded as extraordinary income. (same for the table below) Revenue from operations Operating income (Notes) (¥ billion) FY2021 FY2020 FY2021 FY2020 Y on Y Y on Y In the period under review, COVID-19 impact Results Results Results Results the advertising agency -44.8 billion yen -3.4 billion yen -39.4 billion yen 7.9 43.5 -35.6 business was transferred Railway 112.3 161.7 -49.5 to the Other segment (as (7.9) -3.3 billion yen (-35.6) part of a restructuring of -16.5 billion yen -1.4 billion yen -8.8 billion yen -6.8 1.9 -8.7 the advertising business). Automobile 32.7 47.9 -15.2 Revenue and income from (-7.5) -1.2 billion yen (-9.4) -0.5 billion yen the Urban Transportation -0.6 billion yen -4.0 billion yen 0.8 1.3 -0.5 segment’s advertising Retailing 14.0 21.4 -7.5 (0.7) -0.1 billion yen (-0.6) operations are now included in the data for 0.7 0.9 -0.2 the segment’s railway Others 8.8 9.4 -0.6 (0.7) (-0.2) business (the first of the four businesses shown in *Not including head office expenses /adjustments. Impact of outsourcing of convenience store / the table on the left). station-based store operations (Aug 2019) -4.5 billion yen 8 [Urban Transportation] Railway Performance Results Hankyu Corporation Fare revenues (¥ million)* Passenger volumes (Thousands)* FY2021 FY2020 FY2021 FY2020 Change Change Results Results Results Results Commuter pass 28,093 34,119 -6,025(-17.7%) 277,068 344,604 -67,535 (-19.6%) Workers 25,625 29,623 -3,998(-13.5%) 216,044 243,854 -27,810(-11.4%) Students 2,468 4,496 -2,027(-45.1%) 61,024 100,750 -39,725(-39.4%) Other tickets 40,982 61,887 -20,905(-33.8%) 208,035 310,525 -102,489(-33.0%) Total 69,075 96,007 -26,931(-28.1%) 485,104 655,129 -170,025(-26.0%) COVID-19 impact -29.7 billion yen -2.2 billion yen Hanshin Electric Railway Fare revenues (¥ million)* Passenger volumes (Thousands)* FY2021 FY2020 FY2021 FY2020 Change Change Results Results Results Results Commuter pass 10,476 12,327 -1,850(-15.0%) 107,336 127,652 -20,316(-15.9%) Workers 9,750 11,080 -1,330(-12.0%) 90,809 101,243 -10,433(-10.3%) Students 726 1,246 -520(-41.7%) 16,526 26,409 -9,882(-37.4%) Other tickets 13,725 21,665 -7,940(-36.6%) 76,214 118,559 -42,345(-35.7%) Total 24,202 33,993 -9,790(-28.8%) 183,550 246,212 -62,661(-25.5%) COVID-19 impact -10.9 billion yen -0.9 billion yen * 1) Revenue amounts less than one million yen, and numbers of passengers less than one thousand, are omitted.