Seibu Holdings Inc (9024) investor relations material

Executive summary

• H1 FY2027 operating revenue was ¥304,138 million, up 17.2% YoY; operating profit was ¥42,191 million, up 34.8%, and profit attributable to owners was ¥24,109 million, up 21.2%.

• H1 revenue, operating profit and parent-attributable profit exceeded initial forecasts; growth reflected e'grand consolidation, railway fare revisions, stronger domestic hotels and property securitization.

Financial highlights

• Ordinary profit was ¥38,248 million, up 29.4% YoY; EBITDA rose ¥15.4bn to ¥74.2bn.

• Operating cash flow was ¥64,801 million versus cash used of ¥46,940 million a year earlier; investing cash outflow was ¥178,339 million and FCF was negative ¥113.5bn.

• Comprehensive income fell to ¥16,009 million from ¥18,717 million, including a ¥11,755 million securities valuation decrease.

• Prior-year construction contributions of ¥57,448 million were largely offset by a ¥57,444 million tax-purpose reduction entry; H1 FY2027 recorded ¥266 million for each item.

Outlook and guidance

• FY2027 forecast: revenue ¥619,000 million, operating profit ¥56,000 million, ordinary profit ¥48,000 million and attributable profit ¥26,000 million; EPS ¥102.24.

• Forecast revisions added ¥60.0bn to revenue, ¥3.0bn to operating profit and ¥5.0bn to EBITDA, while reducing attributable profit by ¥1.0bn; revenue and operating profit targets are ¥619.0bn and ¥56.0bn.

• 2H revenue is expected above the initial forecast on railway and domestic hotel performance, e'grand consolidation and the Kioicho investment; operating profit is expected in line as costs and overseas hotel weakness offset gains.

• Parent-attributable profit is forecast below the initial plan partly due to higher interest expense and taxes; full-year dividend guidance remains ¥42 per share, split ¥21 interim and ¥21 year-end.