Promotion of Tobu Group Medium-Term Business PlanMedium-Term Business Plan. Status of Progress on...
Transcript of Promotion of Tobu Group Medium-Term Business PlanMedium-Term Business Plan. Status of Progress on...
Status of Progress on Medium-Term Business Plan
1. Progress on Medium-Term Business Plan
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
・・・・・・・・・・・・・・ P14 - 162. Three Pillars of Management Strategy
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(1) Unification of Asakusa/Tokyo Skytree Town area
and preparations for making Tokyo 2020 a success
(2) Becoming a railway line to which people want to move and stay
(5) New initiatives for further expansion of profits
(3) Hotel business
(4) Inbound
(6) Creation of new tourist attractions
in collaboration with local communities
・・ P7 - 9
・・・・・・・・ ・・・・・・・・・・・・・・・・・・ P10
・・・・・・・ ・・・・・・・・・・・・・・・・・・・・・ P11
・・・・・・・・・・・ P12
・・・・・・・・・・・・・・ P13
・・・・・・・・・ P3 - 6
Promotion of Tobu Group Medium-Term Business Plan
Progress on Medium-Term Business Plan
FY2017 FY2019FY2018 FY2021 and laterFY2020
Nikko/Kinugawa
area
Asakusa/Tokyo
Skytree area
Ikebukuro area
Ginza/Yaesu/Coastal area
Facility development
centered on stations
Provision of
luxurious
lifestyle services
Improvement of
transportation
services
Construction of Wakoshi
south exit station building
●Opening of facility
●Opening of station building
●Construction commenced
●Opening of hotel●2018.2
Construction commenced
●2018.3 Construction commenced
●Shinkoshigaya VARIE Renovation of 4F/5F
Station store/building plan ●Opening of Kitasenju center zone
●Soka VARIE 2 renovation
Condominium/
detached houses
●Opening of Shin-Funabashi childcare facility
Rental condominium
●Completion of Solaie Narimasu
Child-raising/senior care
●Opening of Soka-city Takasago rental condominium
●Opening of Shingashi Ekimae housing complex
●Opening of Kitasenju childcare facility
●Opening of Hikifune childcare facility
Launch of
operations
●2017.8 SL launch of operations
Introduction of new limited
express for sightseeing
Development of Kitajukken River waterfront space
(under elevated railway)
Construction of
THE RITZ-CARLTON NIKKO
SL operations
Promotion of redevelopment project
for west exit of Ikebukuro Station
Construction of AC Hotels
by Marriott Tokyo Ginza
●Completion of double-track line between Mutsumi and Sakasai, expansion of express operation sections
●Opening of Kitasenju South Exit stores
●Completion of Solaie Nagareyama Otaka no Mori
Shimizu-koen detached houses (2017-2020)
●Opening of Solaie I’ll Nerima Kitamachi
●Opening of Solaie I’ll Shimoakatsuka
Plan
●●Completion of
Solaie Katsushika Kosuge
Imp
rovem
en
t of v
alu
e a
lon
g ra
ilway lin
es
thro
ug
h fu
rther c
ultiv
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f bu
sin
esses a
lon
g
railw
ay lin
es
Expansion of the hotel business
●Opening of hotel
Sumida River
pedestrian bridge
●2018.11 Launch of second SL restoration
●Restoration complete
●Opening of Tokiwadai Station North Exit stores
Introduction of seating service
for Hibiya Line through trainsLaunch of operations
●Completion of Solaie Gran Nagareyama Otaka no Mori
●Completion of Solaie City The Park/The Garden
Establishment of
lifestyle services
Multifaceted development
of hotels
Inbound initiatives Inbound
●Opening of Asakusa/Kawagoe
Further promotion of Group inbound activities
●Sapporo rebranding
●Opening of Shin-Funabashi childcare facility
●Opening of Minami-Sakurai childcare facility
●Completion of Solaie Soka Matsubara City Terrace
Discussion/coordination with area stakeholders/government officials for promotion of redevelopment
●Completion
●Opening of hotel
●Opening of Iwatsuki rental housing for senior citizens
Group point
●Establishment of Asia Sales Branch
Urban planning decision
Period covered by Medium-Term Business Plan
Launch of new Group point
Promotion of Tobu Group Medium-Term Business Plan
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Maxim
izatio
n o
f reven
ue th
rou
gh
focu
sed
investm
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t in k
ey a
reas
Expansion of express operation
sections on URBAN PARK Line
Creating No. 1 tourist destination in Tokyo by unifying Asakusa/Tokyo Skytree Town area
Sports studio/café
General stores with casual atmospheres
Sumida Park
New town where bridge, under elevated railway, park, and waterfront area are integrated
Spring 2020 Opening
12 stores (goods, food and drink, etc.) and hotel
Roadside commercial facility consisting of unique stores and a hostel, taking advantage of waterfront and park environment
Tokyo mizumachi
Shortest connection between Asakusaand Tokyo Skytree Town
Sumida Park/Waterfront development
Commissioning entity: Sumida City, Tokyo
Creation of liveliness through operation by private businesses (planned for FY2021)
Tokyo Skytree®/Asakusa pedestrian connecting bridge
Sumida River Walk
Stores facing Sumida Park
Strong promotion of area town development (such as area
management)
Promotion of Tobu Group Medium-Term Business Plan
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New spot centered on sports
Community hostel creating liveliness
(Tentative name) Wise Owl Hostels
0
200
400
600
800
1,000
1,200
1,400
1,600
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Tokyo Skytree Number of inbound visitors (estimates)
Tokyo Skytree contributes to excitement of Tokyo 2020
Strengthening of inbound sales capabilities
■Strengthening of online sales through overseas OTAs
■Strengthening of communications and advertising
targeting China and other countries
■Expansion of sales locations at airports and other travel
hubs
PR for Tokyo 2020 (laser mapping/special lighting)
Promotions to ensure success
■Continued PR for Tokyo 2020
■Related events at Tokyo Skytree Town, including events
to mark two years until Olympics
■Invitations to overseas media to come and cover
TEMBO DECK
Aiming for 4.5 million visitors to Tokyo Skytree
1 facility(End of FY2018)
14 facilities(2019.10)
Aim for dramatic increase in inbound
visitors on occasion of Tokyo 2020Further expansion in future
(1,000 people)
Promotion of Tobu Group Medium-Term Business Plan
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Our initiatives during Tokyo 2020 (effective utilization of land in Ariake)
Narita Airport
Making working-class culture and Tokyo Skytree a symbol of Tokyo and Japan
Haneda Airport
Increase convenience of spectators at Tobu Ariake Field
Promotion of Tobu Group Medium-Term Business Plan
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10 events to be held nearby
Tobu Ariake FieldPlanned site of
Tobu Ariake Field
Ariake Coliseum
Tokyo SkytreeTown Asakusa
Asakusa/Tokyo Skytree Town area
Connecting both areas
AriakeVolleyball
Gymnastics
Tennis
BMX/Skateboarding
Ariake-Tennis-no-mori Station
To tourist spots along railway lines and areas
all over Japan
Direct
Directions
• Installing platform doors at
stations nearest to venues
• Counter-terrorism training
• Installation of surveillance
cameras in train cars, etc.
Safety
measures
• Renovations at four stations
nearest to venues
• Promotion of multilingual support
(Ticket machine guidance in 8 languages,
English conversation classes, etc.)
• Promotion of smooth business, etc.
Improved
convenience
Preparing an environment for taking in visitors for Tokyo 2020
Renovation at Kitakoshigaya Station
Asaka Station platform door
Promotion of Tobu Group Medium-Term Business Plan
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Omiya Kasukabe
Kashiwa
Funabashi
Nagareyama Otaka no Mori
Shinkamagaya
Tokyo (JR)
Express operations launched
(March 2016)
Kita
senju
/Asakusa
(TO
BU
SK
YT
RE
E L
ine
)
Unga
Takayanagi
Becoming a railway line to which people want to move and stay
■Increased speed
■Improved convenience
■Pursuit of comfort
Morning rush hours Kashiwa Funabashi
31 min 22 min (9-minute reduction)
Evening rush hours Kashiwa Funabashi
30 min 19 min (11-minute reduction)
Daytime Omiya Funabashi
92 min 76 min (16-minute reduction)
Last train at each junction station postponed up to 30 minutes
New limited express Urban Park Liner from Kashiwa to Shimizu-koen / Kasukabe
*New express stops in red
TOBU URBAN PARK LineTimetable revision (March 2020)March 2020
Launch of express
operations
Iwatsuki
Aiming to become the most used railway in the area
Aiming to increase TOBU URBAN PARK Line revenues by approx. 1 billion yen
Promotion of Tobu Group Medium-Term Business Plan
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Becoming a railway line to which people want to move and stay
EQUiA Tokiwadai
Condominiums
Solaie City The Park/The Garden(Dokkyodaigakumae [Soka Matsubara] Station)
・Solaie Soka Matsubara City Terrace
・Solaie City The Park/The Garden
・Solaie Nagareyama Otaka no Mori
・Solaie Gran Nagareyama Otaka no Mori, etc.
November 29, 2019 Grand opening
Five in-station stores to open on December 12, 2019 Including food stores for daily use
March 2020: Station building grand opening
Expansion of EQUiA stores into more stationsDevelopment of quality living
environment
Detached houses・Solaie Shimizu-koen Urban Park Town
EQUiA PREMIE Wako
Solaie Hiroshimaマルシェ 写真
Urban development for vibrant local communities
Station building with commercial facilities and hotel
Aiming for a commercial facility suited to those who want to take comfort to the next level in their daily living while emphasizing natural, personal expression
Bringing total number ofEQUiA locations to 13
Promotion of Tobu Group Medium-Term Business Plan
Continue to develop as appealing in-station facility for further expansion of profits
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New EQUiA brand
Becoming a railway line to which people want to move and stay
■Solaie I’ll Nerimakitamachi Obtain our first certified design under Tokyo
child-care housing certification system (To be completed in January 2020)
■Development of satellite offices
■Work spaces inside station Considering introducing private
offices for businesspeople to use their time effectively
■Establishment of nursery schools near stations along railway linesOpening in Shin-Funabashi (Spring 2020)
Child-raising support business
Work style reform support business
■Company housing with childcare
facilities“kanowa Tobu-dobutsu-koen”
■Company-led childcare facility
“Solaie Kids Tobu-dobutsu-koen”
Creation of working environments comfortable for women, too
Connecting generations and creating the happiest living environment in Japan through stronger collaboration with municipalities
Enrichment of child-raising support and lifestyle services
Opened in September 2019
Accumulate know-how and develop company housing business
Support for unique shift pattern of railway businessChildcare on weekends, holidays, and overnight
Registered
companiesRegistrants
September 2018 117 3,834
September 2019 233 6,448
Bringing total to 15 locations
■Solaie Gran Nagareyama Otaka no Mori Condominium with on-premises
childcare/After-school facility to be invited and after school care center (to be completed in September 2021)
Effective utilization of empty space at station
Promotion of Tobu Group Medium-Term Business Plan
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Maximization of hotel business revenue by capturing robust demand
Promotion of accommodation-type hotel development
Aim for operating margin of 10% or higher
Occupancy rate
94.0% (-0.5%)
86.9% (-1.1%)
87.6% (+4.2%)
*YoY comparison in parenthesis
Main hotels1H FY2019 Results
Improving product value at existing hotels
Fairfield by Marriott Sapporo
opening after rebranding
(planned for 2020 spring opening)
Work to capture rapidly increasing
inbound demand within Sapporo Asakusa Tobu HotelGuest room
Hotels under constructionNo. of
guest roomsNet sales Operating income
AC Hotels by Marriott Tokyo Ginza 296
¥5.5 billion ¥0.55 billionAsakusa Tobu Hotel 253
Wako City Tobu Hotel 158
Kawagoe Tobu Hotel 168
ADR
Ginza ¥24,100 (+4.0%)
Kinshicho ¥16,200 (+5.7%)
Narita ¥9,900 (+2.0%)
THE RITZ-CARLTON NIKKO
May 22, 2020 Opening
Outside of Kawagoe Tobu Hotel
Promotion of Tobu Group Medium-Term Business Plan
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8.0
10.5
13.1
7.6
0
2
4
6
8
10
12
14
2016 2017 2018 1H 2019 2020
Trend in Inbound Revenue
Promotion of efforts to attract inbound customers
Tobu Group inbound operating revenue1H FY2019 Results
¥7.6 billion + 21.7% (YoY)
■Further increase in revenue with effective sales promotions
Implementing effective promotions for sustainable growth while taking the latest situation overseas into account
Trend in inbound revenue
Inbound initiatives
• Ramp up promotions for markets where interest in Tokyo 2020 is high (United States and China)
■Initiatives for Tokyo 2020
■Ongoing ad placements
+55.4%Tobu Department Store Ikebukuro
transaction amount (YoY)
Placement in overseas travel magazines
■Inviting overseas media
Media tour coinciding with Rugby World Cup
Promotion of Tobu Group Medium-Term Business Plan
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billion
billion
billion
billion
¥14.0 billion
Target
(Billions of yen)
¥
¥
¥
¥
• Tobu Group Alipay campaign
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New initiatives to further expand profits
Enhancement of profitability through modal shift to railway
■New station between Tobu-Takezawa and Obusuma
Autumn 2020 opening (planned)
Promotion of railway use on commute to Honda plant
■Cooperation with Utsunomiya City MaaS social experiment
Implemented as first step for improving public transportation share in Utsunomiya area
Provide free passes for Tobu Utsunomiya Line (between Nishi-Kawada and Tobu-Utsunomiya)
Labor savings through utilization of new technologies
■Cooperation with TOBU BUS auto driving experiments
Auto driving (level 2) experiment on public roads between Kashiwanoha Campus Station West Exit and University of Tokyo Kashiwa Campus
[Overview]
• Company: TOBU BUS EAST CO., LTD
• Start date: November 1, 2019
• Driving distance: Approx. 2.6km
• Description: Automatic control via installation of
GPS and magnetic markers on road
Experimental vehicle Operating routeMap data ©2019 Google
Anticipation of level 4 auto driving in future
Promotion of Tobu Group Medium-Term Business Plan
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Will also contribute to easing traffic congestion
Verify changes in transportation behavior by participants and utilize for future expansion of use
Illustration of new station
Construction to start within year
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Creation of new tourist content in cooperation with community
Creation of infrastructure tourismthrough public-private collaboration
66,054
Aiming to become a railway line that creates new flows of people for regional revitalization and prosperity
Concluded collaboration agreement with Council for Utilization of Metropolitan Area Outer Underground Discharge Channel
TOBU TOP TOURS CO., LTD.Launch of Metropolitan Area Outer Underground Discharge Channel tours Create non-resident population in Kasukabe area
Received 11th Japan Tourism Agency Commissioner’s AwardReceived 5th Japan Tourism Award
Total number of visitors(August 2018-September 2019)
*Not carried out in January and
February 2019
Creation of new tourist attractions
■Ranzan Town Lavender Field (Sennen no Sono)
■Straw art at Tobu-Dobutsu-Koen Station West Exit
• TOBU TOP TOURS received contract from Ranzan Town for attracting customers
• Drew customers to 8ha lavender field (June 8-July 7, 2019)
• Collaboration with Miyashiro Town
+20.8%Number of users of
Musashi-Ranzan Station(Year-on-year comparison)
Approx.
75,000Visitors
(+238.5% compared to
FY2017)
Promotion of Tobu Group Medium-Term Business Plan
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Dragon straw art exhibit
Agricultural town of Miyashiro
Also famous as cosplay mecca
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0
500
1000
1500
2000
2500
ToFY2018
To 1HFY2019
Acquisition of shares
Strategic investments forgrowth
Investments in maintenanceand updates
Promotion of growth investment
Total investment: Approx. ¥202 billion(including shares)
Total investment: Approx. ¥177 billion(including shares)
TOBU STORE Share acquisitionTOBU TOWER SKYTREE
Share acquisition
THE RITZ-CARLTON NIKKOconstruction
Construction of Wakoshi South Exit station building
Introduction of seating service on through trains to and from Hibiya Line
Expansion of express operation sections on URBAN PARK Line
Promotion of Tobu Group Medium-Term Business Plan
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
250
200
150
100
50
0
14
(Billion of yen)
7,500
8,000
8,500
Maintenance of financial strength
[Medium-Term Business Plan 2017-2020]
Interest-bearing debt/EBITDA multiple of
around 6.5x-7x
24.6%
23.5%
26.4%
28.1%
(Billion yen)
Shareholders equity ratio
Interest-bearing debt balance
Interest-bearing debt balance (forecast)
Interest-bearing debt balance
(Medium-Term Business Plan)
FY2014 FY2015 FY2016 FY2020Medium-Term Business Plan
(revision)
FY2017 FY2019forecast
FY2018
27.6%
2QFY2019
29.0%
Interest-bearing debt/EBITDA
multiple6.5x7.9x 7.0x 6.6x 6.6x 6.5x6.6x -
¥830.0billion
¥823.5billion
¥799.7billion
¥790.3billion
¥793.1billion
¥799.7billion
¥819.9billion
¥780.6billion
Promotion of Tobu Group Medium-Term Business Plan
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850
800
750
15
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2014年度 2015年度 2016年度 2017年度 2018年度 2019年度予想
Further enhancement of shareholder return
[Medium-Term Business Plan 2017-2020]
Treasury shares acquired Number of shares: 4 million ¥10 billion (upper limit)Acquisition period: November 1, 2019 – February 28, 2020
*1 Dividend per share reflects the impact of the reverse stock split (5 for 1 basis, ordinary shares) implemented on October 1, 2017
¥30.0 ¥30.0 ¥35.0¥32.5
¥10 billion
Amount of treasury shares acquired
Total annual dividend
Dividend per share
¥35.0
Establish a total return ratio of around 30% for the period average of the Medium-Term
Business Plan while keeping a basic policy of providing
steady dividends¥40.0
¥6.4billion
¥7.0billion
¥6.4billion
¥7.4billion
¥7.4billion
¥8.5billion
¥10 billion
Promotion of Tobu Group Medium-Term Business Plan
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019forecast
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Facility names in this document are registered trademarks of TOBU RAILWAY CO., LTD. and TOBU TOWER SKYTREE Co., Ltd.
All rights reserved. Copyright © TOBU RAILWAY CO., LTD. 2019
Important Notes Concerning This Document
The Company’s profit plans and other goals set forth in this document are based on projections of industry trends related to the business of the Company and Group companies and other such factors that impact business results, including the economy in Japan and other countries, which are made based on the information currently available to the Company.As such, the reader is asked to note that actual business results may differ from the forecasts within this document due to changes in the business environment and other such factors.
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