Nankai Electric Railway : Results in the First Half of FY2023 Presentation for Investments (November 17,2023)

Presentation on FY2023 First Half

Financial Results for Investors

November 17, 2023

Nankai Electric Railway Co., Ltd.

(Tokyo Stock Exchange, Prime Market, Securities Code: 9044)

Contents	1

I. Summary of Financial Results for the First Half of FY2023	2
II. Business Forecasts for FY2023	18

1. Progress of the Medium-term Management Plan

"Kyoso 140 Plan"	25
IV. Sustainable Management Initiatives	46
Appendix	52

2

1. Summary of Financial Results for the First Half of FY2023

Performance highlights	3

Operating revenue

Operating income

Non-operating income

Non-operating expenses

Ordinary income

Extraordinary income

Extraordinary losses

Profit attributable to owners of parent

FY2023 1H

results

(A)

117,672

14,237

974

1,944

13,268

156

525

8,867

				(Millions of yen)
FY2022 1H	Compared to	Previous	Compared to the forecasts
FY2022 1H results	forecast for	at the beginning of FY2023 1H
results	Change	Percentage	FY2023 1H	Change	Percentage
(B)	(Announced
(A-B)	change	April 2023)	(A-C)	change
	(C)
108,240	9,431	8.7%	119,400	−1,727	−1.4%
9,446	4,791	50.7%	9,900	4,337	43.8%
854	120	14.1%
2,085	−140	−6.7%
8,215	5,052	61.5%	8,900	4,368	49.1%
390	−234	−60.0%
593	−68	−11.5%
7,116	1,750	24.6%	6,300	2,567	40.8%

Both revenue and income grew due to factors such as an increase in the number of passengers transported in the transportation business and an increase in condominium sales in the real estate business.

Despite a decrease in revenue in the cargo transportation business due to a decrease in the cargo transportation volume handled and other factors, income grew mainly due to condominium sales in the real estate business brought forward from the second half of the term and a recovery of passengers carried in the bus business.

Status of segment composition (as of September 30, 2023)	4

[Consolidated subsidiaries: 54, non-consolidated subsidiaries: 17, non-equity method affiliates: 6]

(No change from March 31, 2023)

Transportation	Real Estate	Distribution	Leisure and Services	Construction	Other
（35 companies）	（6 companies）	（9 companies）	（20 companies）	（4 companies）	（8 companies）

• Nankai Electric Railway Co., Ltd. (the Company) is included in duplicate in the Transportation, Real Estate, Distribution, and Leisure and Services segments. SEMBOKU RAPID RAILWAY CO., LTD. is included in duplicate in the Transportation and Real Estate segments.

[ Operating revenue ]	[ Operating income ]
(Billions of yen)	(Billions of yen)

* Percentage share: Ratio to operating revenue, including that from intersegment transactions

Segment operating revenue and operating income	5

(i) Change of operating revenue (compared to FY 2022 1H)

(Millions of yen)

(ii) Change of operating income (compared to FY 2022 1H)

Segment operating revenue and operating income	6

(Millions of yen)

		Operating revenue			Operating income
	FY2023 1H	FY2022 1H	Change	Percentage	FY2023 1H	FY2022 1H	Change	Percentage
	results	results	change	results	results	change
Transportation	48,632	46,335	2,296	5.0%	3,456	−885	4,341	－
Real Estate	25,218	22,794	2,423	10.6%	7,072	6,657	414	6.2%
Distribution	13,064	11,824	1,240	10.5%	1,616	925	690	74.6%
Leisure and	20,097	18,312	1,784	9.7%	1,701	1,624	76	4.7%
Services
Construction	22,172	19,319	2,852	14.8%	173	980	−806	−82.3%
Other	1,313	1,080	233	21.6%	−58	−49	−9	－
Adjustment	−12,826	−11,427	－	－	276	192	－	－
Total	117,672	108,240	9,431	8.7%	14,237	9,446	4,791	50.7%

Segment information (Transportation)

7

(Millions of yen)

Transportation

Operating revenue

Railway business

Bus business

Other transportation businesses

Adjustment (intrasegment) Operating income

components Main Railway business Bus business

FY2023 1H	FY2022 1H
results	results
48,632	46,335
30,999	26,500
11,536	8,982
9,389	13,870
−3,293	−3,018
3,456	−885
2,472	−400
1,031	−790

Change

2,296 4,498 2,553 −4,480 － 4,341 2,872 1,822

Percentage change

5.0% 17.0% 28.4% −32.3% － － － －

• Despite a decrease in revenue in the cargo transportation business, both revenue and income grew due to an increase in the number of passengers carried compared to the same period of the previous year in the railway and bus businesses.

Revenue from railway passengers and passengers carried

8

(non-consolidated)

(Millions of yen, thousands of passengers)

	All lines	FY2023 1H	FY2022 1H	Change	Percentage
	results	results	change
Passenger revenue	Non-commuter passes	16,254	12,339	3,914	31.7%
Commuter passes	9,941	9,572	369	3.9%
Total	26,196	21,912	4,284	19.6%
Passengers carried	Non-commuter passes	44,446	38,331	6,115	16.0%
Commuter passes	63,768	61,958	1,810	2.9%
Total	108,214	100,289	7,925	7.9%
	Airport line	FY2023 1H	FY2022 1H	Change	Percentage
	results	results	change
Passenger revenue	Non-commuter passes	4,247	1,604	2,643	164.8%
Commuter passes	605	421	183	43.4%
Total	4,853	2,025	2,827	139.5%
Passengers carried	Non-commuter passes	5,308	2,230	3,078	138.0%
Commuter passes	2,018	1,443	575	39.8%
Total	7,326	3,673	3,653	99.5%

Segment information (Transportation)	9

[Reference 1] (Individual - all lines) Changes in the rate of increase/decrease in railway passenger revenue compared to the same month of 2019

• Although the Accounting Standard for Revenue Recognition and other standards have been applied since April 2021, the percentage change is calculated based on the simple comparison without adjusting the amount affected.