interim financial results for fiscal 2013, the year … · interim financial results for fiscal...
TRANSCRIPT
August 12, 2013
Interim Financial Results for Fiscal 2013, the Year Ending December 31, 2013
Content
—1—
Organizational Structure of the Management Integration ・・・・・・・・・・・・・・・・・・・・・・・ P2
Integrating Operations to Realize Synergies ・・・・・・・・・・・・・・・ ・・・・・・・・・・・・・・・・・・ P3
Business Structure ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P4
KNT-CT Holdings’ Scope of Consolidation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P5
Overview of FY2013 Interim Period ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P6–8
Results for FY2013 Interim Period ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P9
Sales by Segment for FY2013 Interim Period ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P10
Consolidated Balance Sheets at the End of the FY2013 Interim Period ・・・・・・・・・・ P11
Consolidated Cash Flow Statement for the FY2013 Interim Period ・・・・・・・・・・・・・・ P12
Full-Year Forecasts of Consolidated Financial Results for FY2013 ・・・・・・・・・・・・・・ P13
Medium-Term Management Plan (2013 – 2015) Priority Initiatives ・・・・・・・・・・・・・・・・ P14
Numerical Targets in the Medium-Term Management Plan (from FY 2013 to 2015) ・・・ P15
Targets in the Medium-Term Management Plan (from FY 2013 to 2015) ・・・・・・・・・・・ P16
IR Inquiries
Organizational Structure of the Management Integration
KNT-CT Holdings Co., Ltd.
—2—
Absorption-type split(Individual Travel
Business)
Transfer of shares(Media-based Travel
Business)
Kinki Nippon Tourist Co., Ltd.
Kinki Nippon Tourist Individual
Tour Co., Ltd.
Club Tourism International Inc.
Absorption-type split(Group Tour Business)
Integrating Operations to Realize Synergies
Reorganization to a holding company framework under KNT-CT Holdings Co., Ltd., on January 1, 2013
—3—
On January 1, 2013, the KNT Group shifted to a holding company framework, and in February 2013, established a
medium-term management plan spanning through the fiscal year ending December 31, 2015. Based on this plan, KNT-CT
Holdings Co., Ltd., is promoting independent management of group companies and stronger links between them, while
working to maximize synergies by leveraging the strengths of the Kinki Nippon Tourist and Club Tourism International brands.
Business Structure
Kinki Nippon Tourist Co., Ltd.
Club Tourism International Inc.
Kinki Nippon Tourist Individual Tour Co., Ltd.
KNT-CT Holdings Co.,
Ltd.
Kinki Nippon Tourist Hokkaido Co., Ltd.
Kinki Nippon Tourist Tohoku Co., Ltd.
Kinki Nippon Tourist Chugoku-Shikoku Co., Ltd.
Thirteen domestic consolidated subsidiaries of KNT-CT Holdings Co., Ltd.
Fifteen overseas consolidated subsidiaries of KNT-CT Holdings Co., Ltd.
Two subsidiaries
Kinki Nippon Tourist Individual Tour Sales Co., Ltd.
Kinki Nippon Tourist Kyushu Co., Ltd.
—4—
KNT-CT Holdings’ Scope of Consolidation
38 consolidated subsidiaries
NTT Data Teranos Corporation, Hakone Kogen Hotel; Okunikko Kogen Hotel
KNT Travel (Thailand) Co., Ltd., KNT Taiwan Co., Ltd., and other
H&M INSURANCE HAWAII、GRIFFIN INSURANCE
Tourist Experts Co., Ltd
Kinki Nippon Tourist Shoji Co., Ltd.Tourist Service Hokkaido Co., Ltd., KNT Business Create Co., Ltd.Club Tourism Marketing Co., Ltd.Tourist International Assistance Service, Inc.
Event & Convention House, Inc.
Six companies affiliated by the equity methodJapan
Outside Japan
KIE (USA), KIE (CND), KIE (EUR), KIE (OCE), PDI, KNT KOREA, others13 travel companies
outside Japan
10 other affiliated companies
Temporary staff services
Merchandising and insurance Business consignment and others
Travel assistance services
Event and convention planning
15 travel companies in Japan
Kinki Nippon Tourist Co., Ltd., Kinki Nippon Tourist Individual Tour Co., Ltd., Club Tourism International Inc., Kinki Nippon Tourist Individual Tour Sales Co., Ltd., Kinki Nippon Tourist Hokkaido Co., Ltd., Kinki Nippon Tourist Tohoku Co., Ltd., Kinki Nippon Tourist Kanagawa Co., Ltd., Kinki Nippon Tourist Chugoku-Shikoku Co., Ltd., Kinki Nippon Tourist Kyushu Co., Ltd., Kinki Nippon Tourist Okinawa Co., Ltd., United Tours Co., Ltd., T-Gate, Inc., KNT Asia Co., Ltd., Showa Travelers Club Co., Ltd., Sanki Travel Service Co., Ltd.
—5—
2 reinsurance underwriting businesses
Club Tourism Life Care Service., Ld.Care-giving services
Overview of FY2013 Interim Period—Part 1
The Yurakucho Theme Travel Salon
Principal companies operating under KNT-CT Holdings Co., Ltd.
■Individual Travel BusinessKinki Nippon Tourist Individual Tour offers dedicated website packages while Club Tourism International promotes bus tour packages. Through cross-selling of each company’s respective products, joint marketing of charter flights, and other strategies, KNT-CT Holdings is working to generate greater synergies.
Kinki Nippon Tourist Individual Tour Co., Ltd., and Kinki Nippon Tourist Individual Tour Sales Co., Ltd.Innovating tour packages by adding more value to theme-style travel ■ Created planned tours including global expeditions and trips to secluded areas and Word Heritage Sites, as well as a
new tour of South Africa■ Opened the SIT Travel Planning Center in Tokyo’s Yurakucho district on March 30
Kinki Nippon Tourist Individual Tour’s subsidiary Kinki Nippon Tourist Individual Tour Sales opened the Yurakucho Theme Travel SalonExpanded planning and marketing by integrating development and sales of various theme-style travel packages
■ Kinki Nippon Tourist Individual Tour Sales opened the Grand Front Osaka Sales Agent in Osaka’s Umeda district as its flagship outlet in the Kansai region on April 26
—6—
A theme travel brochure
Overview of FY2013 Interim Period—Part 2
Scenes from the Voyager of the Seascharter cruise
Principal companies operating under KNT-CT Holdings Co., Ltd.
Club Tourism International Inc.Developing customer-oriented strategies by taking advantage of member organized and recruited trips in the media-based travel business■ Conducted a special charter cruise of the Voyager of the Seas, one of the largest cruise ships in Asia
・ Planned and created a travel package completely different from those offered by competitors ■ Opened the Kyoto Travel Center as the company’s fourth outlet in the Kansai region
・ Boosted sales in the region, particularly in Kyoto and Shiga Prefectures
—7—
Overview of FY2013 Interim Period—Part 3
A large-ball table tennis tournament at a hot spring area near Lake Suwa
in Nagano Prefecture
Principal companies operating under KNT-CT Holdings Co., Ltd.
■Group Tour Business
Kinki Nippon Tourist Co., LtdExpanding proposal-based marketing of individual and group tours in major cities
Proactively stepped up sales activities for the meetings, incentives, conferences and exhibitions (MICE) market in growing industries・Organized travel related to corporate conventions and incentivesAggressively expanded sales activities to meet demand related to major sporting events・Handled travel related to the Tokyo Marathon 2013・Supported bidding activities as an official partner of the Tokyo 2020 Olympics and Paralympics Bid Committee・Used sports as a means to attract tourists to various region and promote the consulting businessCultivated demand for travel in the education market・Improved the handling of school trips・Stimulated demand for travel related to sports and cultural events besidesschool trips
—8—
Results for FY2013 Interim Period
FY2013 first half FY2012 first half Increase/decrease % change
Sales 200,500 137,356 63,144 146.0Operatingexpenses (1,001) (946) (55) —
Ordinary income (1,432) (948) (484) —
Extraordinaryincome 35 135 (100) (74.1)
Extraordinary loss 181 334 (153) (45.8)
Net income (1,051) (1,392) 341 —
(Millions of yen)
[Disclosing sales as gross sales ] Given the nature of sales transactions for travel packages such as member-organized toursand special order tours, KNT-CT Holdings has changed its method for calculating sales from the previously used net salesmethod, in which sales figures are minus the cost of sales, to a gross sales method, in which sales figures includes cost ofsales.
Sales increased 63,144 million yen compared to the same period of the previous year owing to the inclusion of ClubTourism International Inc. in the scope of consolidationOperating income decreased 55 million yenOrdinary income decreased 484 million yen (Non-operating income such as interest income totaled 207 million yen, whilenon-operating expenses such as foreign exchange losses amounted to 638 million yen)Extraordinary income was down 100 million yen compared to the same period of the previous year, mainly due tocompensation received totaling 35 million yenExtraordinary loss decreased 153 million yen compared to the same period of the previous year, mainly resulting from 181million yen in costs related to the integration of operations
—9—
Sales by Segment for FY2013 Interim Period
IndividualTravel
Business Group TourBusiness Other Total Adjustment
Amount recorded in consolidated interim financial
statements
Sales to external customers 118,399 47,107 34,992 200,500 — 200,500
Inter-segment sales and transfers
55 1,071 4,582 5,710 (5,710) —
Total sales 118,455 48,179 39,575 206,210 (5,710) 200,500
Income and loss by segment (1,166) 659 (150) (657) (344) (1,001)
—10—
(Millions of yen)
Consolidated Balance Sheets at the End of the FY2013 Interim Period
June 30, 2013 December 31, 2012 Increase/decrease
Current assets 106,386 67,142 39,244Cash and deposits 55,284 28,541 26,743
Fixed assets 28,256 20,617 7,639Total assets 134,643 87,760 46,883
Current liabilities 107,365 77,162 30,203
Trade accounts payable and
unsettled travel tickets
49,562 41,540 8,022
Fixed liabilities 6,785 4,879 1,906Total liabilities 114,151 82,041 32,110
Total net assets 20,491 5,718 14,773Retained earnings 4,216 (7,203) 11,419
Total liabilities and net assets 134,643 87,760 46,883
(Millions of yen)
June 30, 2013
December 31, 2012
Capital adequacy
ratio15.2％ 6.4％
June 30, 2013
December 31, 2012
Net assets per share 76.68yen 59.45yen
—11—
(Unit: Millions of Yen)
Consolidated Cash Flow Statement for the FY2013 Interim Period
FY2013 first half FY2012 first half
Cash flows used in operating activities 5,627 (3,432)
Cash flows from investment activities 2,349 (739)
Cash flows from financing activities 352 (13)
Cash and cash equivalents at the end of
the interim period52,821 27,509
Cash flows used in operating activitiesCash flows used in operating activities amounted to 5,627 million yen, mainly owing to increases in both advanced orders for group tours amounting to 3,502 million yen, and accounts payable amounting to 2,885 million yen. Cash flows from financing activitiesCash flows provided by financing activities totaled 352 million yen as a result of the exercise of new stock options.
—12—
Full-Year Forecasts of Consolidated Financial Results for FY2013
Full-Year Forecasts for FY2013
SalesTurnover
465,000 million yen575,000 million yen
Operating income 4,400 million yen
Ordinary income 3,900 million yen
Net Income 1,500 million yen
Net income per share 5.64 yen
Capital adequacy ratio 17.0%
—13—
Medium-Term Management Plan (2013 – 2015) Priority Initiatives
—14—
2. Cut down on costs by making the management of divisions more efficient
5. Improve management’s ability to carry out strategies
4. Develop global business focusing on Asia
3. Develop and motivate human resources
1. Maximize synergies in operations
Numerical Targets in the Medium-Term Management Plan (from FY 2013 to 2015)
(Unit: Billions of Yen)
—15—
FY2013 FY2014 FY2015(Reference)FY2017
SalesTurnover
465575
475585
485600
500620
Operating income 4.4 5.0 5.8 8.5
Net income 1.5 2.4 3.0 5.0
Capital adequacy ratio 17.0% 18.5% 20.0% 24.0%
Note: Sales are determined on an accounting basis, and therefore differ from turnover.
Targets in the Medium-Term Management Plan (from FY 2013 to 2015)
—16—
4.45.0
5.8
8.5
Operating income(Billions of yen)
FY2013 FY2014 FY2015 FY2017
10.0
8.0
6.0
4.0
2.0
0
17.0
18.5
20.0
24.0
15.0
20.0
25.0
30.0Capital adequacy ratio％
FY2013 FY2014 FY2015 FY2017
465475
485500
Sales(Billions of yen)
FY2015 FY2017
550
500
450
400FY2014FY2013
1.5
2.43.0
5.0
Net income(Billions of yen)
FY2013 FY2014 FY2015 FY2017
6.0
4.0
2.0
0
IR Inquiries
KNT-CT Holdings Co., Ltd.
Higashi-Kanda Fukoku Seimei Building1-7-8 Higashi Kanda, Chiyoda-ku, Tokyo, Japan 101-8641
Public Relations, General Affairs Department,Kinki Nippon Tourist Co., Ltd. TEL：03-6891-6839 FAX：03-6891-6890URL：http://www.kntcthd.co.jp/
These materials are not intended to solicit investment, but are provided for reference only. Please refer to the company’s financial statements and securities reports for accurate earnings figures. The financial targets provided in this material are based on information available at the time of writing, however, actual results may differ from the forecasts as a result of changes in a range of factors.