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Consolidated Earnings Forecasts

Outlook for the fiscal year ending March 31, 2022



(Updated November 11,2021)
On November 11, 2021, we have revision our consolidated earnings forecasts for the fiscal year ending March 31, 2022. Please refer to this material  for details.

Reason of revisions

We have revised our forecast based on factors such as the performance for the first six months ended September 30, 2021 and the current business trends.
During the six months ended September 30, 2021, our financial results were lower than the figures announced on May 13, 2021 due to a deterioration in business conditions relative to our assumptions of May 13, 2021, resulting from the successive declaration of states of emergency, the prolongation of the same, and the holding of the Tokyo Olympics and Paralympics without spectators.

While the new full-year consolidated earnings forecast is based on the assumption that people’s activities will recover due to the progress of COVID-19 vaccinations, the gradual relaxation of restrictions on movement and other factors, this recovery has been later than expected in the forecast announced on May 13, 2021, and we expect operating revenue to be lower than the May 13 forecast.
We expect a decrease of approximately ¥30,000 million in full-year fixed expenses (May 13 forecast reduction target: ¥22,000 million) due to cost controls, including reducing and postponing a variety of expenses. However, we are forecasting an operating loss, with lower EBITDA compared to the May 13 forecast and a projected ordinary loss, reflecting the outlook for lower operating revenue than the May 13 forecast.
Loss attributable to owners of parent is expected to be larger than the May 13 forecast, mainly due to recording ordinary loss and loss on temporary suspension of operations and so forth. This is expected to outweigh extraordinary income on securitization of the Shin-Yokohama Square Bldg., the Shibakoen 2-chome Bldg., and the Shin- Yokohama Seibu Bldg., exceeding the May 13 forecast as well as recording subsidies for employment adjustment.

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
Urban Transportation
and Regional
133.6 9.0%
Hotel and Leisure 144.8 72.3%
Real Estate 57.8 4.3%
Construction 81.2 (15.5%)
Other 32.1 20.0%
Adjustments (42.5)
Consolidated 407.0 20.7%

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
Urban Transportation
and Regional
(5.6)
Hotel and Leisure (19.3)
Real Estate 17.7 14.8%
Construction 4.0 (1.4%)
Other (4.6)
Adjustments (0.2)
Consolidated (8.0)

EBITDA for each segment

billions of yen
          
  March 31,
2022
(forecast)
Y o Y
change
Urban Transportation
and Regional
17.2 38.8%
Hotel and Leisure (2.3)
Real Estate 29.6 7.9%
Construction 4.3 (5.6%)
Other (0.4)
Adjustments (1.4)
Consolidated 47.0