Takashimaya Company (8233) investor relations material

Executive summary

• FY2025 operating revenue was ¥1.0 tn, holding steady despite a pullback in inbound demand, while FY2026 operating revenue was ¥492.4 bn, down 1.2% YoY.

• Operating, business, and ordinary profit exceeded forecasts, with operating profit at ¥53.5 bn, though net profit turned to a loss of ¥8.2 bn due to a ¥71.3 bn extraordinary loss from convertible bond redemption.

• The company introduced a “business profit” indicator to enhance ROIC management and portfolio flexibility.

• Shareholder value was prioritized through the purchase and cancellation of Zero Coupon Convertible Bonds, reducing EPS dilution.

• Advanced its medium-term plan, focusing on next-generation shopping centers, overseas expansion (notably Vietnam), and finance.

Financial highlights

• FY2025 total operating revenue: ¥1,032.3 bn (flat YoY), with H2 up 1.7% YoY.

• Operating profit: ¥53.5 bn (down 4.0% YoY), exceeding forecast by ¥1.0 bn.

• Net assets decreased to ¥477.7 bn, equity ratio at 33.4%.

• Annual dividend per share increased to ¥34, up ¥9.5 from the previous year (adjusted for stock split).

• Extraordinary loss of ¥71.3 bn from convertible bond redemption led to net loss.

Outlook and guidance

• FY2026/FY2027 forecasts call for a 2.2% increase in operating revenue to ¥1,055.0 bn.

• Operating profit projected at ¥57.5 bn (+4.0 bn YoY), business profit at ¥64.3 bn (+4.7 bn YoY), and net profit forecast at ¥38.0 bn.

• Dividend per share to rise to ¥40, targeting a 30% payout ratio.

• ROE expected at 8.3% for FY2026.

• Focus remains on seamless group integration, next-generation shopping centers, Vietnam expansion, and finance.