FY2008 Financial Results. July 2008 Nankai Electric Railway Co., Ltd.

Transcription

1 FY2008 Financial Results July 2008 Nankai Electric Railway Co., Ltd.

2 Brief Summary Nankai Group is one of the leading railway operators and an urban, residential and leisure developer based in the southern Osaka area. The southern Osaka area used to be active with the textile industry at the core, and is becoming active again as the construction of hi-tech factories progresses. Nankai Group dominates fields such as the railway business, real estate leasing in the Namba area, and residential development in the southern Osaka area. 1

3 Business Areas of Nankai Group 2

4 Comparison among 16 Listed Railway Companies Operating Length (Km, as of March 31, 2008) JR-East JR-West JR-Central Kintetsu Tobu Nagoya Hankyu-Hanshin Nankai Odakyu Nishi-Nippon Keisei Tokyu Keihan Keikyu Keio Sagami Number of Passengers (Millions of people, FY2008) JR-East JR-West Tokyu Tobu Hankyu-Hanshin Odakyu Keio Kintetsu -Central Keikyu Nagoya Keihan Keisei Nankai Sagami Nishi-Nippon *Data for the three JR companies are based on those of FY2007 JR-East JR-Central JR-West Hanky u-hanshin Toky u Kintetsu Tobu Odaky u Keio Nagoy a Keiky u Nankai Keisei Sagami Nishi-Nippon Keihan Total Assets (Billions of yen, as of March 31, 2008) Operating Revenue (Billions of yen, FY2008) JR-East -East -Central -Central Toky u -West JR-West Hankyu-Hanshin Kintetsu Tokyu Hanky u-hanshin Kintetsu Nagoy a Tobu Odaky u Odakyu Tobu Nagoya Keio Keikyu Nishi-Nippon Nankai Keiky u Keisei Sagami Keio Keihan Keihan Keisei Sagami Nankai Nishi-Nippon Operating Income (Billions of yen, FY2008) We have a rather small number of passengers for our operating length in the railway business. We have relatively low operating revenues for our size, compared to other railway companies. We have a high operating income to sales ratio and make limited yet steady operating income. We are committed to expand our group operation and increase productivity. 3

5 Current Status of Nankai Group Breakdown by Segment (FY2008) [49 consolidated subsidiaries/9 non-consolidated subsidiaries/6 affiliated companies (of which, 5 equity-method affiliates)] Transportation (27 companies) Real Estate (6 companies) Retail (7 companies) Operating Revenue and Operating Income by Segment Leisure and Services (19 companies) Construction (4 companies) Other (7 companies) Other 4,034 (1.9%) Leisure and Services 29,826 (14.1%) Operating Revenue (Million of yen) Construction 34,525 (16.4%) Retail 25,374 (12.0%) Real Estate 31,560 (14.9%) Transportation 86,010 (40.7%) Real Estate 10,902 (37.7%) Operating Income Leisure and Services (Millions of yen) 1,328 (4.6%) Other 312 Retail (1.1%) 2,393 (8.3%) Transportation 14,004 (48.5%) Construction -45 (-0.2%) 4

6 Current Status of Nankai Group Transportation (Thousands of people) 350,000 Changes in the Number of Passengers 300, , , , , The railway business serves as a cash engine for the sustainable growth of the Nankai Group Sustained investment in railway infrastructure to retain our cash generating power Economic recovery in Osaka revitalizing the Nankai railway area Recent and gradual increase in the number of passengers 5

7 Current Status of Nankai Group Real Estate, Retail Major Leasing Facilities in the Namba Area Facility name Rentable area (m 2 ) Main usage Nankai Building 50,259 Department store Nankai Kaikan Building 26,610 Business office Namba CITY Swissôtel Nankai Osaka 31,500 72,122 Shopping mall Hotel Nankai Building and Swissôtel Nankai Osaka NAMBA PARKS 111,435 Shopping mall Business office Real estate leasing in the Namba area serving as the second cash engine for the Nankai Group NAMBA PARKS Major Large-Scale Residential Development Projects Residential land name Planned area (ha) Number of lots sold for detached houses (lots) Number of remaining lots completed for detached houses (lots) Nankai Hashimoto Rinkan Den-entoshi , Nankai Kumatori/ Tsubasagaoka Residential property sales in suburban Osaka becoming sluggish due to the recent tendency to return to urban centers Nankai Kumatori/ Tsubasagaoka 6

8 Economic Trend in Osaka (Places) 450 Changes in the Number of Factories Built in the Kinki Area (10,000 m 2 ) Number of new factories built Average size of new factories (Source: METI) SHARP New manufacturing complex (conceptual drawing) (Source: Sharp Corporation) Osaka fell into a serious economic depression in the 1990s. Many new factories have been built in the suburbs of Osaka since around SHARP is building up one of the world s largest LCD factories and thin-film solar cell factories as a Manufacturing Complex for the 21st century in the Nankai railway area, aiming to begin operation during FY

9 Changes in Major Management Indices Operating Revenue, Operating Income, Ordinary Income Operating Income and Ordinary Income: (Million of yen) 35,000 30,000 25,000 20,000 15,000 10,000 5, , Operating Income Ordinary Income Operating Revenue Operating Revenue: ROA and ROE (%) (Million of yen) 300, , , , ,000 50,000 0 ROA, ROE, Interest-Bearing Debt/EBITDA Interest-Bearing Debt/EBITDA: (Times) ROA ROE Interest-Bearing Debt/EBITDA /EBITDA Nankai group took serious damage due to an economic depression in Osaka in the late 1990s. In FY2003, we started the first 3-year management plan focused on reducing debt volume. In FY2006, we developed the second 3-year management plan focused on restructuring non-core businesses. From FY2009, we have launched the third 3-year management plan, called the Kenshin 126 Plan. FY

10 New 3-year 3 Management Plan - Kenshin 126 Plan Target figures for the final fiscal year (FY2011) Consolidated Ordinary Income: 17 billion yen or higher Consolidated Interest-Bearing Debt/EBITDA: Less than 10 *EBITDA = Operating Income + Depreciation and Amortization (Million of yen) FY2008 FY2009 FY2010 FY2011 Operating Revenue 188, , , ,300 Operating Income 28,873 20,500 23,600 27,400 Ordinary Income 18,909 10,700 13,900 17,200 Net Income 11,365 16,000 9,000 11,100 Capital Investments 24,855 42,800 34,200 28,100 Depreciation and Amortization 20,281 21,700 22,400 22,800 EBITDA 49,155 42,200 46,000 50,200 Interest-Bearing Debt 502, , , ,000 Interest-Bearing Debt/EBITDA (Times) * Kenshin means steady progress. * The final year of the plan (2011) is the 126th year since our foundation. 9

11 New 3-year 3 Management Plan - Kenshin 126 Plan Area Strategy Osaka city southern area Southern Osaka bayside area Koya line area Koya-san tourism area Nanki and Tokushima area Southern Osaka bayside area New SHARP LCD factory construction Business related to Kansai International Airport Wakayama-city terminal redevelopment Kansai International Airport SHARP New manufacturing complex Izumisano Namba Sakai Osaka city southern area Namba area redevelopment Hankai area tourism development Sakaihigashi Koya line area Business related to new residential town Inviting companies or schools to Rinkan Den-entoshi Rinkan Den-entoshi Hashimoto Port of Tokushima Wakayama City Port of Wakayama Koya-san Koya-san tourism area Koya line renovated as tourism route Nanki and Tokushima area Enhancing tourism-related business Shingu City Nachi Katsuura Town 10

12 New 3-year 3 Management Plan - Kenshin 126 Plan of people) Namba Area Redevelopment To Fukuoka To Kobe Hanshin Railway Hanshin Namba Line (scheduled to start operation in the spring of 2009) [Major Railway Map of Osaka City] Subway (Midosuji Line) Osaka Loop Line Subway (Yotsubashi Line) JR Namba Shin Osaka Umeda Yodoya bashi Hom machi Shinsai bashi Namba (Thousands [Number of Passengers per Day at Kansai Major Terminals] Nankai Railway Shinkansen Tennoji To Tokyo Hankyu Railway To Kyoto West Japan Railway Company Keihan Railway Subway (Sennichimae Line) Kintetsu Corporation To Nara To Wakayama To Umeda Namba Station (Kintesu Line /Sennichimae Line) Midosuji Line Namba Station Yotsubashi Line JR Namba Station Namba Station Yotsubashisuji Planned site for service apartment construction Osaka Prefectural Gymnasium [Namba Area Map] Midosuji Nankai Building Nankai Kaikan Building NAMBA PARKS The Namba Tower Swissôtel Nankai Osaka Namba CITY Nankai Namba Station Sakaisuji Nippombashi Station (Kintesu Line/ Sennichimae Line/ Sakaisuji Line) Nankai Terminal Building Planned district for Namba redevelopment area Yamada-Denki Namba area Umeda area Tennoji area Sannomiya area Source: Annual Report on City Transportation for 2007 used as a reference 11

13 Investor Relations Contact Nankai Electric Railway Co., Ltd Namba, Chuo-ku, Osaka City, JAPAN IR Public Relations Department, General Affairs Office Yukio Tsuzaki Keisuke Okamoto This document is not intended to be an invitation to purchase investment vehicles. This document should be used only as a reference. Brief financial reports, financial statements, and related documents should be referred to for accurate figures, etc. for account settlement. Business forecasts and future prospects stated in this document are calculated based on information currently available, but may contain many uncertain factors, including changes in business conditions such as demand trends, price fluctuation, etc. Therefore, actual operating performance results may differ from these forecasts due to changes in these factors. 12