First Half of the Fiscal year ending March 31, 2018 Earnings Announcement

Transcription

1 First Half of the Fiscal year ending March 31, 2018 Earnings Announcement Sotetsu Holdings, Inc. November 2, TSE securities code: 9003

2 Financial Highlights (Balance Sheet) Consolidated balance sheet As of March 31, 2017 As of September 30, 2017 Amount % Current assets 73,808 68,962-4, Cash and deposits: -11,094 Inventories: +9,908 Non-current assets 505, ,348-2, Total assets 579, ,310-7, Current liabilities 143, ,632-26, Current portion of bonds: -12,000 Short-term loans payable: -3,045 Non-current liabilities 307, , , Long-term loans payable: +13,564 Total liabilities 451, ,793-14, Total net assets 128, ,516 +6, Total liabilities and net assets 579, ,310-7, Equity 125, ,995 +7, Equity ratio (%) Interest-bearing debt 309, ,318-1,

3 Financial Highlights (Statement of Income) Consolidated statement of income First half of FY3/2017 First half of FY3/2018 Operating revenue 127, ,739 Operating income 17,108 16,603 Ordinary income 15,722 15,572 Profit attributable to owners of parent 10,132 10,018-2,177 Transportation: +182, Merchandising: +295 [-1.7%] Real estate: -3,630, Hotel: +998, Other: Transportation: +126, Merchandising: -75 [-3.0%] Real estate: -634, Hotel: -58, Other: Non-operating income: +14 [-1.0%] Non-operating expenses: [-1.1%] Net income per share yen yen yen The Company conducted a consolidation of shares at a ratio of one share for every five shares of common stock on October 1, 2017, and the effect of the consolidation of shares is taken into account for net income per share. 2

4 Segment Information (Transportation) Transportation First half of First half of FY3/2017 FY3/2018 Operating revenue 19,639 19,821 Operating income 5,151 5, Increase in revenue due to a rise in the number of [+0.9%] passengers transported by train +126 [+2.5%] Railway No. of passengers (1,000) Non-commuter Commuter Total 40,070 76, ,871 40,410 77, , % +1.0% +0.9% Commuter: Regular +1.2% Student +0.3% Passenger revenue (million yen) Non-commuter Commuter Total 7,846 7,858 15,705 7,926 7,938 15, % +1.0% +1.0% Commuter: Regular +1.1% Student +0.5% 3

5 Segment Information (Merchandising) Merchandising First half of FY3/2017 First half of FY3/2018 Operating revenue 54,294 54,589 Operating income [+0.5%] -75 [-7.7%] Increase in revenue mainly due to a rise in sales in the sand and gravel business Decrease in income mainly due to a rise in expenses in the supermarket business and the sand and gravel business Supermarket sales growth (existing stores): +1.3% 4

6 Segment Information (Real Estate) Real estate First half of First half of FY3/2017 FY3/2018 Operating revenue 31,135 27,505 Operating income 8,107 7,472-3,630 [-11.7%] -634 [-7.8%] Sales/Leasing breakdown Real estate sale Operating revenue Operating income Real estate lease Operating revenue Operating income 11,781 6,973-4,808 A decline in the number of condominiums sold 1, ,266 Decrease in income due to lower revenue 19,480 20,666 +1,185 Increase in revenue due to revenue from the sale of land for business 6,881 7, Increase in income due to factors contributing to an increase in revenue Number of condominiums and houses sold First half of FY3/2017 First half of FY3/2018 Condominiums Houses Total (Major properties delivered) Gracia City Kawasaki Daishigawara and Brillia Higashitotsuka 5

7 Segment Information (Hotel) Hotel First half of First half of FY3/2017 FY3/2018 Operating revenue 18,974 19, [+5.3%] Increase in revenue due to the openings of Sotetsu FRÉSA INN Ginza 7-chome, Sotetsu FRÉSA INN Shimbashi-Hibiya-guchi Annex, Sotetsu FRÉSA INN Kyoto Shijo-karasuma and Sotetsu FRÉSA INN Kyoto Station Hachijo-guchi Operating income 2,577 2, Decrease in income, mainly reflecting a decline in revenue in existing [-2.3%] hotels and an increase in expenses for preparations for new hotels Room occupancy rate/ Average revenue per room First half of First half of FY3/2017 FY3/2018 Room occupancy rate (%) Average revenue per room (Yen) Sotetsu FRÉSA INN pp SUNROUTE* pp Yokohama Bay Sheraton pp Sotetsu FRÉSA INN 9,421 9,570 SUNROUTE* 10,520 10,197 Yokohama Bay Sheraton 17,916 19, [+1.6%] -323 [-3.1%] +1,439 [+8.0%] * The room occupancy rate and average revenue per room for SUNROUTE are for directly operated hotels and hotels managed for other companies. Total of 17 locations. 6

8 Segment Information (Other) Other First half of First half of FY3/2017 FY3/2018 Operating revenue 10,232 10,390 Operating income Increase in revenue mainly due to an increase in revenue from construction work in the building maintenance business [+1.5%] +141 [+55.0%] 7

9 Forecast for FY3/2018 (Statement of Income) Forecasts for consolidated statement of income FY3/2017 (Actual) FY3/2018 (Forecast) Forecast vs. Actual Initial plan Operating revenue 253, ,400 +9,036 Transportation: +283, Merchandising: -3,966 [+3.6%] Real estate: +10,094, Hotel: +1,760, Other: ,600-5,200 [-1.9%] Operating income 30,510 29,000-1,510 Transportation: -192, Merchandising: -162 [-4.9%] Real estate: -389, Hotel: -814, Other: ,000 [%] Ordinary income 27,558 26, Non-operating income: -90 Non-operating expense: -742 [-3.1%] 26,700 [%] Profit attributable to owners of parent 17,061 16, [-2.7%] 16,600 [%] Net income per share yen yen yen The Company conducted a consolidation of shares at a ratio of one share for every five shares of common stock on October 1, 2017, and the effect of the consolidation of shares is taken into account for net income per share yen yen Capital expenditure 20,678 41, ,480 Transportation: +2,004, Merchandising: +1,112 [+99.0%] Real estate: +16,413, Hotel: +482, Other: ,158 [%] Depreciation 16,011 16, [+1.9%] 16, [+0.2%] 8

10 Forecast for FY3/2018 (Transportation) Transportation FY3/2017 FY3/2018 (Actual) (Forecast) Operating revenue 38,916 39,200 Forecast vs. Actual +283 Increase in revenue due to a rise in the number of passengers transported by train [+0.7%] Initial plan 38, [+0.8%] Operating income 8,392 8, Decrease in income, mainly reflecting an increase in electric power costs [-2.3%] 8, [+1.2%] Capital expenditure 8,559 10,563 Depreciation 6,134 6,356 +2,004 [+23.4%] +221 [+3.6%] (Details of expenditure for FY2018/3 forecasts) Replacement of trains, renewal of railway vehicles and stations in the Design Brand-up Project, extension work on Futamatagawa Station, renewal of Yayoidai Station, Hoshikawa-Tenno-cho elevated tracks project, etc. 10,563 6,355 [%] +0 [+0.0%] Railway No. of passengers (1,000) Non-commuter Commuter Total 80, , ,077 80, , , % +0.7% +0.5% Commuter: Regular +0.8% Student +0.3% 79, , , % +0.5% +0.6% Passenger revenue (million yen) Non-commuter Commuter Total 15,674 15,477 31,151 15,726 15,582 31, % +0.7% +0.5% Commuter: Regular +0.7% Student +0.7% 15,606 15,501 31, % +0.5% +0.6% 9

11 Forecast for FY3/2018 (Merchandising) Merchandising FY3/2017 (Actual) FY3/2018 (Forecast) Forecast vs. Actual Initial plan Operating revenue 109, ,300-3,966 [-3.6%] Decrease in revenue due to the transfer of the sand and gravel business The supermarket business recorded an increase in revenue due to a rise in sales 108,200-2,900 [-2.7%] Operating income 2,262 2, Decrease in income due to a decline in revenue in the sand and gravel business [-7.2%] 2,100 [%] Capital expenditure 912 2,024 +1,112 [+121.9%] (Details of expenditure for FY2018/3 forecasts) Establishment of new Rosen stores (Yayoidai Store), etc. 2,024 [%] Depreciation [+2.9%] [-3.3%] Supermarket sales growth (existing stores): +1.1% 10

12 Forecast for FY3/2017 (Real Estate) Real estate FY3/2017 (Actual) FY3/2018 (Forecast) Operating revenue 57,905 68,000 Operating income 14,989 14,600 Forecast vs. Actual +10,094 [+17.4%] -389 [-2.6%] Initial plan 69,600 14,500-1,600 [-2.3%] +100 [+0.7%] Capital expenditure 6,437 22,851 Depreciation 6,798 6, ,413 [+255.0%] +181 [+2.7%] (Details of expenditure for FY2018/3 forecasts) Redevelopment of the area around the south exit of Futamatagawa Station, renovation of the streets in front of Yayoidai Station 22,851 6,891 [%] +88 [+1.3%] Sales/Leasing breakdown Real estate sale Operating revenue Operating income Real estate lease Operating revenue Operating income 19,271 28,500 +9,228 Increase in revenue due to a rise in the number of condominiums sold 30,100-1,600 1,686 1, ,700 38,844 39, Increase in revenue due to revenue from the sale of land for business 39,700 13,303 12, Decrease in income due to an increase in expenses 12, Number of condominiums and houses sold FY3/2017 FY3/2018 Forecast vs. (Actual) (Forecast) Actual Initial plan Condominiums (Major properties) The Parkhouse Nishi Shinjuku Tower Houses Total

13 Forecast for FY3/2018 (Hotel 1) Hotel FY3/2017 (Actual) FY3/2018 (Forecast) Operating revenue 38,839 40,600 Operating income 4,414 3, Capital expenditure 4,632 5,115 Depreciation 1,918 1,985 Forecast vs. Actual +1,760 Increase in revenue due to the openings of new hotels (6 hotels [+4.5%] including Sotetsu FRÉSA INN Kyoto Shijo-karasuma ) Decrease in income mainly due to a decline in sales in existing hotels and increase in expenses for renovations and preparations for new [-18.5%] hotels +482 [+10.4%] +66 [+3.5%] (Details of expenditure for FY2018/3 forecasts) Establishment of new hotels such as Sotetsu FRÉSA INN Osaka Yodoyabashi Kitahama and Sotetsu FRÉSA INN Ueno Okachimachi Initial plan 41,600 3,900 5,115 1,998-1,000 [-2.4%] -300 [-7.7%] [%] -13 [-0.7%] Room occupancy rate/ Average revenue per room Room occupancy rate (%) Average revenue per room (Yen) FY3/2017 (Actual) FY3/2018 (Forecast) Forecast vs. Actual 12 Initial plan Sotetsu FRÉSA INN pp pp SUNROUTE* pp pp Yokohama Bay Sheraton pp pp Sotetsu FRÉSA INN 9,478 9,484 SUNROUTE* 10,353 10,201 Yokohama Bay Sheraton 18,190 19, , [+0.1%] [-1.8%] ,391 [-1.5%] [-1.8%] +1,570 19, [+8.6%] [-0.2%] * The room occupancy rate and average revenue per room for SUNROUTE are for directly operated hotels and hotels managed for other companies. Total of 17 locations.

14 Forecast for FY3/2018 (Hotel 2) FRÉSA INN to open Name (* shows properties owned by the Sotetsu Group) Location Rooms Opening Date #21 Sotetsu FRÉSA INN Ueno Okachimachi* Taito-ku, Tokyo 155 November 10, 2017 #22 Sotetsu FRÉSA INN Ginza 3-chome Chuo-ku. Tokyo 147 December 1, 2017 #23 Sotetsu FRÉSA INN Tokyo Kinshicho Sumida-ku, Tokyo 281 December 10, 2017 Preparing for opening (24) Preparing for opening (25) Preparing for opening (26) Preparing for opening (27) Preparing for opening (28) Sotetsu FRÉSA INN Osaka Yodoyabashi Kitahama* (provisional name) Sotetsu FRÉSA INN Kanda Station Minami-guchi (provisional name) Sotetsu FRÉSA INN Osaka Shinsaibashi* (provisional name) Chuo-ku, Osaka City 243 (planned) Spring 2018 (planned) Chiyoda-ku, Tokyo 115 (planned) Spring 2018 (planned) Chuo-ku, Osaka City 175 (planned) Winter 2018 (planned) Sotetsu FRÉSA INN Osaka Namba (provisional name) Naniwa-ku, Osaka City 276 (planned) Summer 2019 (planned) Sotetsu FRÉSA INN Nagoya Station-front (Provisional name) Nakamura-ku, Nagoya City * The Company opened Sotetsu FRÉSA INN Tokyo Roppongi (201 rooms) on October 10, Simplified private room hotel to open 250 (planned) Spring 2020 (planned) Name (* shows properties owned by the Sotetsu Group) Location Rooms Opening Date Preparing for opening (Not yet determined)* Chukyo-ku, Kyoto City 150 (planned) Autumn 2018 (planned) 13

15 Forecast for FY3/2018 (Other) Other FY3/2017 FY3/2018 (Actual) (Forecast) Operating revenue 21,416 21,900 Forecast vs. Actual +483 Increase in revenue in the renovation and water filter businesses [+2.3%] Initial plan 21, [+0.5%] Operating income Increase in income due to a decrease in expenses [+40.6%] [+25.0%] Capital expenditure [+344.7%] 603 [%] Depreciation [-48.6%] [-5.1%] 14

16 Forecasts for results of operations are based on information that was available when this presentation was released. Actual performance may differ from these forecasts for a number of reasons.