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Consolidated Earnings Forecasts

Outlook for the fiscal year ending March 31, 2020

For the consolidated earnings forecasts for the fiscal year ending March 31, 2020, operating revenue is forecast to be \584,400 million, up 3.3% year on year, mainly reflecting an increase in railway transportation sales in the Urban Transportation and Regional business segment; an increase in RevPAR by strengthening revenue management in the Hotel and Leisure business segment and the Hawaii business segment; and the opening of new hotels in and outside Japan as well as the start of operations at DaiyaGate Ikebukuro. These factors are expected to outweigh the impact of a decrease in the number of condominium sales in the Real Estate business segment. EBITDA is forecast to be \128,500 million, up 0.9% year on year, due to the increase in revenue, despite an increase in expenses related to the MetLife Dome area renewal project, operational reforms, and so forth. Operating profit is forecast at ¥71,000 million, a decrease of 3.2% year on year, due to an increase in depreciation.

Due to the decrease in operating profit, the Company is projecting ordinary profit of \62,700 million, down 4.2% year on year. Profit attributable to owners of parent is expected to be \46,200 million, up 1.6% year on year, mainly due to a spring-back after posting extraordinary losses such as a loss on valuation of investment securities in the fiscal year ended March 31, 2019.

Forecasts for operating revenues, operating profit, and EBITDA by segment are as follows.

Operating revenue for each segment

billions of yen
  March 31, 2020
(forecast)
Y o Y
change
September 30, 2019
(forecast)
Y o Y
change
Urban Transportation and Regional 166.1 1.8% 84.4 2.6%
Hotel and Leisure 234.0 6.5% 117.2 6.8%
Real Estate 66.1 (5.1%) 34.2 4.7%
Construction 108.6 (1.0%) 48.5 0.6%
Hawaii Business 25.4 33.1% 11.1 17.8%
Other 40.8 (2.7%) 26.3 1.5%
Total 641.0 2.8% 321.7 4.4%
Adjustments (56.6) - (27.2) -
Consolidated 584.4 3.3% 294.5 4.0%

Operating profit for each segment

billions of yen
  March 31, 2020
(forecast)
Y o Y
change
September 30, 2019
(forecast)
Y o Y
change
Urban Transportation and Regional 25.6 (5.5%) 15.8 (1.6%)
Hotel and Leisure 20.9 5.9% 10.0 (3.8%)
Real Estate 17.0 (15.4%) 9.5 (9.7%)
Construction 5.4 (8.3%) 1.7 (19.8%)
Hawaii Business 2.1 - 0.2 -
Other (0.2) - 3.0 (0.3%)
Total 70.8 (2.6%) 40.2 (3.4%)
Adjustments 0.2 (68.8%) (0.1) -
Consolidated 71.0 (3.2%) 40.1 (4.7%)

EBITDA for each segment

billions of yen
  March 31, 2020
(forecast)
Y o Y
change
September 30, 2019
(forecast)
Y o Y
change
Urban Transportation and Regional 48.3 (1.0%) 26.5 (0.4%)
Hotel and Leisure 37.8 4.8% 18.3 (0.7%)
Real Estate 28.7 (5.7%) 15.3 (2.0%)
Construction 5.9 (6.6%) 1.9 (18.0%)
Hawaii Business 5.0 314.6% 1.6 112.8%
Other 3.1 (28.1%) 4.6 2.7%
Total 128.8 1.3% 68.2 0.0%
Adjustments (0.3) - (0.3) -
Consolidated 128.5 0.9% 67.9 (0.7%)
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