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Consolidated Earnings Forecasts

Outlook for the fiscal year ending March 31, 2022



Consolidated earnings forecasts for the fiscal year ending March 31, 2022, which is the first year of the “FY2021-FY2023 Seibu Group’s Medium-term Management Plan”, are predicated on the assumption that difficult conditions will continue as a result of the fluctuations in the state of COVID-19 infections, but we expect a gradual easing of economic restrictions in the second half as progress is made with vaccinations. In addition, we have excluded the impact of visitors from overseas in our calculation of the effects of holding the Tokyo Olympics and Paralympics. Meanwhile, changes in values and activities during the COVID-19 pandemic (widespread use of remote working, online meetings, etc.) are expected to persist.

As a result of calculations based on the above assumptions, operating revenue is not expected to return to the pre-coronavirus level recorded in the fiscal year ended March 31, 2020. However, due to initiatives such as utilizing cooperation both inside and outside the Group to create service transformation to suit the new normal, we expect an increase of 35.3% year on year relative to the fiscal year ended March 31, 2021, to ¥456.0 billion. Also, in addition to conducting a cost review, we are striving to reduce fixed costs, beginning with the hotel business, through such measures as revamping operational structure based on demands, reorganizing the contents of businesses and the divisional structure, and bringing operations in-house. As a result, we expect operating profit to be ¥9.0 billion, compared to an operating loss of ¥51.5 billion for the previous fiscal year. We expect EBITDA to be ¥67.0 million (¥1.8 billion in the previous fiscal year)

Ordinary profit is expected to be ¥0 billion (ordinary loss of ¥58.7 billion in the previous fiscal year). After incorporating some extraordinary gains and losses from the sales and liquidations of assets and businesses to be conducted under the “FY2021-FY2023 Seibu Group’s Medium-term Management Plan” (the estimated total as of May 13, 2021 related to sales of Shin-Yokohama Seibu Bldg. and Seibu Construction Supply Co., Ltd. and liquidations of Shin-Yokohama Square Bldg. and Shibakoen 2-chome Bldg.), net loss attributable to owners of parent is expected to be ¥5.0 billion (net loss attributable to owners of parent of ¥72.3 billion in the previous fiscal year). The forecast figures do not reflect sales and liquidations that are currently being selected, including hotels in Japan and overseas. We aim to realize these as soon as possible.

Please refer to this material  for details.



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

Operating revenue for each segment

billions of yen
      
  March 31,
2022
(forecast)
Y o Y
change
September
30, 2021
(forecast)
Y o Y
change
Urban Transportation
and Regional
142.8 16.5% 70.2 19.6%
Hotel and Leisure 176.9 110.5% 78.0 129.3%
Real Estate 55.8 0.7% 30.5 13.8%
Construction 89.0 (7.4%) 42.1 (9.1%)
Other 33.4 24.8% 20.2 56.0%
Adjustments (41.9) (21.0)
Consolidated 456.0 35.3% 220.0 42.0%

From the start of the fiscal year ending March 31, 2022, the Company has applied “Accounting Standard for Revenue Recognition (ASBJ Statement No. 29)” and relevant revised ASBJ regulations.
For further details, please refer to“Notice Regarding the Formulation of “FY2021-FY2023 Seibu Group’s Mediumterm Management Plan” announced May 13, 2022 .

Operating profit for each segment

billions of yen
           
  March 31,
2022
(forecast)
Y o Y
change
September
30, 2021
(forecast)
Y o Y
change
Urban Transportation
and Regional
0.0 1.4
Hotel and Leisure (4.0) (9.1)
Real Estate 15.9 3.1% 10.9 45.5%
Construction 3.3 (18.7%) 1.1 (39.2%)
Other (4.7) (0.7)
Adjustments (1.5) (0.6)
Consolidated 9.0 3.0

EBITDA for each segment

billions of yen
          
  March 31,
2022
(forecast)
Y o Y
change
September
30, 2021
(forecast)
Y o Y
change
Urban Transportation
and Regional
23.1 86.4% 12.4 146.1%
Hotel and Leisure 14.1 0.0
Real Estate 27.7 0.9% 16.9 26.0%
Construction 3.7 (18.7%) 1.3 (36.4%)
Other (0.5) 1.3
Adjustments (1.1) 0.1
Consolidated 67.0 32.0