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Earnings presentation9021West Japan Railway CompanyTransportation and Logistics

Briefing on the Financial Results for the Fiscal Year Ending March 2026 and the Medium-Term Management Plan 2030

For the fiscal year ended March 2026, the company achieved higher revenue and profit for the fifth consecutive fiscal year, as well as record-high profit, driven by Expo 2025 Osaka-Kansai and urban development projects. For the fiscal year ending March 2027, the company expects a decline in profit due to the adverse impact of the end of the Expo boost, inflation and the situation in the Middle East, and has presented Medium-Term Management Plan 2030 together with a new shareholder return policy.

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Contents of this document

Medium-Term Management Plan PresentationFiscal year ending March 2026, full year14 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥18,458 hundred million+8.1%
Operating profit¥1,980 hundred million+9.9%
Ordinary income¥1,836 hundred million+10.9%
Net income¥1,274 hundred million+11.9%
Results for the three months of the current quarterQualitative explanations are provided for each business in Q4, but standalone consolidated financial figures for the three-month period are Not disclosed
Full-year earnings forecast
Operating revenue
¥18,290 hundred million
Operating profit
¥1,650 hundred million
Ordinary income
¥1,450 hundred million
Profit attributable to owners of the parent
¥1,000 hundred million
EBITDA
¥3,530 hundred million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Mobility business
Operating revenue106%
Operating profit107%
EBITDA105%
Distribution Business
Operating revenue112%
Operating profit118%
EBITDA113%
Real Estate Business
Operating revenue123%
Operating profit119%
EBITDA116%
Travel and regional solutions business
Operating revenue100%
Operating profit47%
EBITDA69%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
In line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in operating profit for FY2026
Mobility+¥8.4 billion
Merchandise and food services+¥2.9 billion
Department stores-¥300 million
Real Estate Leasing and Sales+¥2.7 billion
Shopping centers+¥2.3 billion
Hotels+¥3.2 billion
Travel and regional solutions-¥600 million
Other+¥1.2 billion
Impact of the situation in the Middle East in FY2027
Higher crude oil and coal prices-¥8.5 billion
Decline in inbound tourism-¥2.5 billion
Deterioration in domestic corporate earnings-¥2.0 billion
Total-¥13.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Crude Oil Prices
    Assumptions100$/B
  • International visitors to Japan
    AssumptionsDown 800,000 (Middle East situation scenario)
  • GDP
    AssumptionsDown 0.3% (Middle East situation scenario)
New initiatives
  • Formulation of Medium-Term Management Plan 2030
  • Using AI to add value and improve productivity in operations
  • Enhancing the functionality of green ticket vending machines and providing guidance using tablet devices
  • Promoting the transition to one-person operation
  • Installing sensors on ground equipment and shifting inspections to onboard operations using comprehensive inspection trains
  • Renovation and new openings at LUCUA
  • Expansion of the infrastructure solutions business
  • Changing the shareholder return policy to approximately 3.5% DOE
Key KPIsA metric the company considers important as a management benchmark.
  • Inbound revenue¥835 hundred million
    Year on year against the same period last year177% (versus FY2019)
  • Number of WESTER members1,200 10,000 people
  • Customers per day500 10,000 people
  • GHG Emissions164 10,000 t-CO2
    Year on year against the same period last yearDown 24% versus FY2013
  • Vibrant workplace rate87 %
    Year on year against the same period last yearUp from 64% in 2022
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Hotel ADR (VIA INN)11,200〜13,200
    Year on year against the same period last yearQ4 was broadly unchanged year on year; full-year result was 108%
  • Hotel ADR (Granvia)21,200〜24,700
    Year on year against the same period last yearFull-year result was 106%
  • International visitors to Japan4,277 10,000 people
  • VIA INN occupancy rate
    Year on year against the same period last yearSlightly below the previous year in Q4 of FY2026
Segment results
Mobility business
Operating revenue
¥11,056 hundred million+5.6%
Operating profit
¥1,309 hundred million+6.9%
Distribution Business
Operating revenue
¥2,326 hundred million+11.7%
Operating profit
¥162 hundred million+17.4%
Real Estate Business
Operating revenue
¥2,857 hundred million+22.8%
Operating profit
¥463 hundred million+19.0%
Travel and regional solutions business
Operating revenue
¥1,892 hundred million+0.3%
Operating profit
¥5 hundred million-54.5%
Medium-term management plan targets
Target fiscal yearFY2030
Operating profit¥230 billion
Share of operating profit from lifestyle services and infrastructure solutionsApproximately 60%
Investment amount¥2.6 trillion total over 5 years
Operating profit under the desired 2035 vision¥300 billion
Financial targets
ROICApproximately 4% in FY2030
ROEApproximately 9% in FY2030
Net D/EBITDAApproximately 6x in FY2030
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Impact of the situation in the Middle East-¥13.0 billion (impact on consolidated operating profit)
Capital expenditures
¥2.6 trillion total over 5 years under Medium-Term Management Plan 2030
Annual Dividend
Fiscal year ending March 2026¥97.5 (forecast)
Fiscal year ending March 2027¥97.5 (forecast)
Payout ratio
At least 35% (policy through FY2026)
Acquisition of treasury shares
Past results¥49.9 billion
Results under Medium-Term Management Plan 2025¥100 billion
Fiscal year ending March 2027None
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥18,458 hundred million (YoY +8.1%)
Operating profit¥1,980 hundred million (YoY +9.9%)
Ordinary income¥1,836 hundred million (YoY +10.9%)
Net income¥1,274 hundred million (YoY +11.9%)
Results for the three months of the current quarterQualitative explanations are provided for each business in Q4, but standalone consolidated financial figures for the three-month period are Not disclosed
Full-year earnings forecastOperating revenue ¥18,290 hundred million / Operating profit ¥1,650 hundred million / Ordinary income ¥1,450 hundred million / Profit attributable to owners of the parent ¥1,000 hundred million / EBITDA ¥3,530 hundred million
Progress against full-year forecastMobility business Operating revenue 106% / Operating profit 107% / EBITDA 105% / Distribution Business Operating revenue 112% / Operating profit 118% / EBITDA 113% / Real Estate Business Operating revenue 123% / Operating profit 119% / EBITDA 116% / Travel and regional solutions business Operating revenue 100% / Operating profit 47% / EBITDA 69%
Self-assessment against the planIn line with plan
Segment resultsMobility business Operating revenue ¥11,056 hundred million (YoY +5.6%) / Operating profit ¥1,309 hundred million (YoY +6.9%) / Distribution Business Operating revenue ¥2,326 hundred million (YoY +11.7%) / Operating profit ¥162 hundred million (YoY +17.4%) / Real Estate Business Operating revenue ¥2,857 hundred million (YoY +22.8%) / Operating profit ¥463 hundred million (YoY +19.0%) / Travel and regional solutions business Operating revenue ¥1,892 hundred million (YoY +0.3%) / Operating profit ¥5 hundred million (YoY -54.5%)
Breakdown of Factors Affecting the ChangeYear-on-year change in operating profit for FY2026 Mobility +¥8.4 billion / Merchandise and food services +¥2.9 billion / Department stores -¥300 million / Real Estate Leasing and Sales +¥2.7 billion / Shopping centers +¥2.3 billion / Hotels +¥3.2 billion / Travel and regional solutions -¥600 million / Other +¥1.2 billion / Impact of the situation in the Middle East in FY2027 Higher crude oil and coal prices -¥8.5 billion / Decline in inbound tourism -¥2.5 billion / Deterioration in domestic corporate earnings -¥2.0 billion / Total -¥13.0 billion
Key KPIsIndicator name Inbound revenue / Value ¥835 hundred million / Year on year against the same period last year 177% (versus FY2019), Indicator name Number of WESTER members / Value 1,200 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Customers per day / Value 500 10,000 people / Year on year against the same period last year Not disclosed, Indicator name GHG Emissions / Value 164 10,000 t-CO2 / Year on year against the same period last year Down 24% versus FY2013, Indicator name Vibrant workplace rate / Value 87 % / Year on year against the same period last year Up from 64% in 2022
Unit price and quantity metricsIndicator name Hotel ADR (VIA INN) / Value 11,200〜13,200 / Year on year against the same period last year Q4 was broadly unchanged year on year; full-year result was 108%, Indicator name Hotel ADR (Granvia) / Value 21,200〜24,700 / Year on year against the same period last year Full-year result was 106%, Indicator name International visitors to Japan / Value 4,277 10,000 people / Year on year against the same period last year Not disclosed, Indicator name VIA INN occupancy rate / Value Not disclosed / Year on year against the same period last year Slightly below the previous year in Q4 of FY2026
Assumptions Underlying the Business OutlookItem Crude Oil Prices / Assumptions 100$/B, Item International visitors to Japan / Assumptions Down 800,000 (Middle East situation scenario), Item GDP / Assumptions Down 0.3% (Middle East situation scenario)
Risk amount incorporated into the outlookImpact of the situation in the Middle East -¥13.0 billion (impact on consolidated operating profit)
Medium-term management plan targetsTarget fiscal year FY2030 / Operating profit ¥230 billion / Share of operating profit from lifestyle services and infrastructure solutions Approximately 60% / Investment amount ¥2.6 trillion total over 5 years / Operating profit under the desired 2035 vision ¥300 billion
Financial targetsROIC Approximately 4% in FY2030 / ROE Approximately 9% in FY2030 / Net D/EBITDA Approximately 6x in FY2030
Annual DividendFiscal year ending March 2026 ¥97.5 (forecast) / Fiscal year ending March 2027 ¥97.5 (forecast) / Breakdown Not disclosed
Payout ratioAt least 35% (policy through FY2026)
Acquisition of treasury sharesPast results ¥49.9 billion / Results under Medium-Term Management Plan 2025 ¥100 billion / Fiscal year ending March 2027 None
Capital expenditures¥2.6 trillion (total over 5 years under Medium-Term Management Plan 2030)
New initiativesFormulation of Medium-Term Management Plan 2030, Using AI to add value and improve productivity in operations, Enhancing the functionality of green ticket vending machines and providing guidance using tablet devices, Promoting the transition to one-person operation, Installing sensors on ground equipment and shifting inspections to onboard operations using comprehensive inspection trains, Renovation and new openings at LUCUA, Expansion of the infrastructure solutions business, Changing the shareholder return policy to approximately 3.5% DOE
Items this document does not state (8)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesNumber of stores and locationsNumber of employeesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

For the fiscal year ended March 2026, the Expo, inbound tourism, solid domestic demand and the opening of urban development projects contributed to higher revenue and profit. For the fiscal year ending March 2027, the company identifies the end of the Expo boost, the impact of inflation, the situation in the Middle East, disruptions to construction work in Shin-Osaka and lower real estate sales as factors contributing to lower profit.

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Briefing on the Financial Results for the Fiscal Year Ending March 2026 and the Medium-Term Management Plan 2030 | West Japan Railway Company (9021) timely disclosure | Komori