fy2008 financial resultszthe southern osaka area used to be active with the textile industry at the...
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July 2008
Nankai Electric Railway Co., Ltd.
FY2008 Financial Results
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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.
Brief SummaryBrief Summary
Business Areas of Nankai GroupBusiness Areas of Nankai Group
２2
3
Operating Length (Km, as of March 31, 2008) Number of Passengers (Millions of people, FY2008)
Total Assets (Billions of yen, as of March 31, 2008)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.
0 2,000 4,000 6,000 8,000
JR-EastJR-West
JR-CentralKintetsu
TobuNagoya
Hankyu-HanshinNankai
OdakyuNishi-Nippon
KeiseiTokyu
KeihanKeikyu
KeioSagami
0 2,000 4,000 6,000 8,000
ＪＲ-EastＪＲ-CentralＪＲ-West
Hankyu-HanshinTokyu
KintetsuTobu
OdakyuNagoyaKeikyuNankaiKeisei
KeioKeihanSagami
Nishi-Nippon
0 100 200 300 400 500
JR-EastJR-Central
JR-WestHanky u-Hanshin
Toky uKintetsu
TobuOdaky u
KeioNagoy a
Keiky uNankaiKeisei
SagamiNishi-Nippon
Keihan
Operating Income (Billions of yen, FY2008)
*Data for the three JR companies are based on those of FY2007
0 2,000 4,000 6,000
JR-EastJR-West
TokyuTobu
Hankyu-HanshinOdakyu
KeioKintetsu
ＪＲ-CentralKeikyu
NagoyaKeihanKeiseiNankaiSagami
Nishi-Nippon
Operating Revenue (Billions of yen, FY2008)0 1,000 2,000 3,000
JR-East
ＪＲ-Central
Toky u
JR-WestKintetsu
Hanky u-HanshinNagoy a
Odaky u
Tobu
KeioNishi-Nippon
Keiky uSagami
Keihan
Keisei
Nankai
Comparison among 16 Listed Railway CompaniesComparison among 16 Listed Railway Companies
Construction(4 companies)
Other(7 companies)
Leisure and Services
(19 companies)
Retail(7 companies)
Real Estate(6 companies)
Transportation(27 companies)
[49 consolidated subsidiaries/9 non-consolidated subsidiaries/6 affiliated companies (of which, 5 equity-method affiliates)]
Breakdown byBreakdown by Segment (FY2008)Segment (FY2008)
Operating Revenue (Million of yen)
Operating Income (Millions of yen)
Transportation86,010
(40.7%)
Real Estate31,560
(14.9%)
Retail25,374
(12.0%)
Leisure and Services29,826
(14.1%)
Construction34,525
(16.4%)
Other4,034
(1.9%)
Transportation14,004
(48.5%)Real Estate10,902
(37.7%)
Retail2,393
(8.3%)
Leisure and Services1,328
(4.6%) Other312
(1.1%)
Construction-45
(-0.2%)
4
Current Status of Nankai GroupCurrent Status of Nankai Group Operating Revenue and Operating Income by SegmentOperating Revenue and Operating Income by Segment
CurrentCurrent Status ofStatus of Nankai GroupNankai Group Transportation Transportation
5
100,000
150,000
200,000
250,000
300,000
350,000
85 90 95 00 05
Changes in the Number of Passengers(Thousands of people)
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
NAMBA PARKS
Nankai Building andSwissôtel Nankai Osaka
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Major Leasing Facilities in the Namba Area
Major Large-Scale Residential Development Projects
Nankai Kumatori/Tsubasagaoka
Shopping mallBusiness office111,435 NAMBA PARKS
Hotel72,122 Swissôtel Nankai Osaka
Shopping mall31,500 Namba CITY
Business office26,610 Nankai Kaikan Building
Department store50,259 Nankai Building
Main usageRentable area (m2)Facility name
54057064.0 Nankai Kumatori/Tsubasagaoka
3953,175398.7 Nankai Hashimoto Rinkan Den-entoshi
Number of remaining lots completed for
detached houses (lots)
Number of lots sold for detached houses
(lots)
Planned area (ha)Residential land name
Real estate leasing in the Namba area serving as the second cash engine for the Nankai Group
Residential property sales in suburban Osaka becoming sluggish due to the recent tendency to return to urban centers
CurrentCurrent Status ofStatus of Nankai GroupNankai Group Real Estate, Retail Real Estate, Retail
7
0
50
100
150
200
250
300
350
400
450
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 070
2
4
6
8
10
12
14
16
18
20
Number of new factories built Average size of new factories
FY
(Places) (10,000 m2)
Osaka fell into a serious economic depression in the 1990s.
Many new factories have been built in the suburbs of Osaka since around 2003.
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 FY2010.
Changes in the Number of Factories Built in the Kinki Area
(Source: METI)
SHARP New manufacturing complex(conceptual drawing)
(Source: Sharp Corporation)
Economic Trend in OsakaEconomic Trend in Osaka
8
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
85 90 95 00 050
50,000
100,000
150,000
200,000
250,000
300,000
Operating Income Ordinary Income Operating Revenue
Operating Income and Ordinary Income: (Million of yen)
Operating Revenue: (Million of yen)
0
2
4
6
8
10
85 90 95 00 050
2
4
6
8
10
12
14
16
ROA ROE 有利子負債残高/EBITDA倍率
ROA and ROE (%) Interest-Bearing Debt/EBITDA: (Times)
FY
Operating Revenue, Operating Income,Ordinary Income
ROA, ROE, Interest-Bearing Debt/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 “Kenshin126 Plan.”
Interest-Bearing Debt/EBITDA
Changes in Major Management IndicesChanges in Major Management Indices
New 3New 3--year Management Plan year Management Plan -- ““Kenshin 126 PlanKenshin 126 Plan””
50,20046,00042,20049,155EBITDA
28,10034,20042,80024,855Capital Investments
10.2
502,348
20,281
11,36518,90928,873
188,254
FY2008
500,000514,800516,800Interest-Bearing Debt
10.011.212.3Interest-Bearing Debt/EBITDA (Times)
22,800
11,10017,20027,400
204,300
FY2011
9,00016,000Net Income
22,40021,700Depreciation andAmortization
13,90010,700Ordinary Income23,60020,500Operating Income
195,600190,300Operating Revenue
FY2010FY2009
(Million of yen)
9
Target figures for the final fiscal year (FY2011)Consolidated Ordinary Income: 17 billion yen or higherConsolidated Interest-Bearing Debt/EBITDA: Less than 10
*EBITDA = Operating Income + Depreciation and Amortization
* “Kenshin” means steady progress.* The final year of the plan (2011) is the 126th year since our foundation.
Osaka city southern area
Koya line areaKoya-san tourism areaNanki and Tokushima area
Port of Tokushima Port of WakayamaWakayama City
Izumisano
Kansai International Airport
SakaiSakaihigashi
Rinkan Den-entoshi
Hashimoto
Koya-san
Namba
SHARP New manufacturing complex
Osaka city southern area
“Namba” area redevelopment“Hankai” area tourism development
Koya line areaBusiness related to new residential townInviting companies or schools to Rinkan Den-entoshi
Koya-san tourism areaKoya line renovated as tourism route
Nanki and Tokushima areaEnhancing tourism-related business
Southern Osaka bayside areaNew SHARP LCD factory constructionBusiness related to Kansai International AirportWakayama-city terminal redevelopment
Area StrategyArea Strategy
10
Nachi Katsuura TownShingu City
Southern Osaka bayside area
New 3New 3--year Management Plan year Management Plan -- ““Kenshin 126 PlanKenshin 126 Plan””
657
1,871
512
320
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Namba area Umeda area Tennoji area Sannomiya area
Source: Annual Report on City Transportation for 2007 used as a reference
[Number of Passengers per Day at Kansai Major Terminals](Thousandsof people)
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Namba Area Redevelopment[Major Railway Map of Osaka City] [Namba Area Map]
To Umeda
Yamada-Denki
The Namba Tower
Osaka Prefectural Gymnasium
JRNamba Station
Yotsubashi LineNamba Station
Midosuji LineNamba Station
Namba Station(Kintesu Line/Sennichimae Line)
Nippombashi Station(Kintesu Line/Sennichimae Line/Sakaisuji Line)
Yotsubashisuji
Midosuji
SakaisujiNankai Building
Nankai Kaikan Building
Planned site for service apartment construction
Swissôtel Nankai Osaka
Namba CITY
NAMBA PARKS
Nankai Namba StationNankai Terminal Building
Planned district for Nambaredevelopment area
ＮSubway (Midosuji Line)
To Fukuoka
Shin Osaka
Umeda
JR Namba
Tennoji
Namba
Yodoyabashi
Hommachi
Shinsaibashi
To Tokyo
To KyotoTo
Kobe
To Nara
To Wakayama
Shinkansen
Hankyu Railway
West Japan Railway CompanyHanshin Railway
Keihan Railway
Subway (Sennichimae Line)
Kintetsu Corporation
Nankai Railway
Osaka Loop Line
Subway (YotsubashiLine)
Hanshin Namba Line
(scheduled to start operation
in the spring of 2009)
New 3New 3--year Management Plan year Management Plan -- ““Kenshin 126 PlanKenshin 126 Plan””
Nankai Electric Railway Co., Ltd.5-1-60 Namba, Chuo-ku, Osaka City, 542-8503 JAPANIR Public Relations Department, General Affairs Office
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.
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Yukio Tsuzaki06-6644-7125
Keisuke Okamoto06-6644-7125
Investor Relations ContactInvestor Relations Contact