Komori
Financial results presentation9021West Japan Railway CompanyTransportation and Logistics

Financial Results Briefing for the First Quarter of the Fiscal Year Ending March 2027

Although the company captured domestic demand, revenue and profit declined year on year in the first quarter of the fiscal year ending March 2027, due to the fading of the Expo effect and higher costs resulting from inflation. The company left its earnings and dividend forecasts unchanged.

Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-73
¥100 million (year-on-year change in consolidated operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,244 100 million-0.6%
Operating profit¥559 100 million-11.7%
Ordinary income¥521 100 million-12.6%
Net income¥390 100 million-19.9%
Results for the three months of the current quarter
Operating revenue
¥4,244 100 million
Operating profit
¥559 100 million
Ordinary income
¥521 100 million
Profit attributable to owners of the parent
¥390 100 million
EBITDA
¥1,000 100 million
Full-year earnings forecast
Operating revenue
¥18,290 100 million
Operating Expenses
¥16,640 100 million
Operating profit
¥1,650 100 million
Ordinary income
¥1,450 100 million
Profit attributable to owners of the parent
¥1,000 100 million
EBITDA
¥3,530 100 million
Non-consolidated transportation revenue
¥9,460 100 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。
Inbound revenue25%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance has generally remained within expectations
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit
Mobility business-33
Distribution Business-13
Real Estate Business-23
Travel and regional solutions business-1
Other-2
Non-consolidated transportation revenue
Domestic Demand124
Inbound Tourism1
Fading of the Expo effect-71
Non-consolidated expenses
Personnel Expenses30
Power and fuel costs-1
Repair expenses14
Operating expenses17
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Crude Oil Prices$100/B (average price for the fiscal year)
International visitors to JapanDown 800,000 due to the impact of the situation in the Middle East
GDP▲0.3%
New initiatives
  • Capital and business alliance with Resona Holdings and acquisition of a 20.0% stake in Kansai Mirai Bank (acquisition price: ¥90.0 billion)
  • Launch of WESTER Mirai Bank (provisional name)
  • Promotion of the Osaifu WESTER project
  • Launch of the J.NODE and AONA office brands
  • Opening of the south wing of Plico Nishi-Akashi
  • Operation of 4,738 additional summer trains
  • Implementation of various digital and tourism campaigns
Key KPIsA metric the company considers important as a management benchmark.
Inbound revenue
¥209 100 million-5.0%
International visitors to Japan
1,056 10,000 people-3.0%
Shopping center sales
¥290 100 million+8.2%
Hotel ADR
¥22,800-2.0%
Number of additional summer trains
4,738 bottles+14.0%
Segment results
Mobility business
Operating revenue
¥2,646 100 million+3.3%
Operating profit
¥401 100 million-7.6%
EBITDA
¥738 100 million-1.5%
Distribution Business
Operating revenue
¥539 100 million-4.7%
Operating profit
¥37 100 million-26.4%
EBITDA
¥51 100 million-22.7%
Real Estate Business
Operating revenue
¥585 100 million-9.2%
Operating profit
¥120 100 million-16.0%
EBITDA
¥211 100 million-10.2%
Travel and regional solutions business
Operating revenue
¥405 100 million-6.0%
Operating profit
¥-7 100 million
EBITDA
¥-6 100 million
Medium-term management plan targets
Consolidated operating income for fiscal year 2030
¥2,300 100 million
Operating income from the lifestyle services and infrastructure solutions businesses
¥1,350 100 million
Share of operating incomeApproximately 60%
Group inbound revenue
¥1,110 100 million
Co-creation platform transaction volume
¥340 100 million
WESTER member transaction volume
¥4,700 100 million
Financial targets
ROIC
FY2030Approximately 4%
Actual results for the fiscal year ended March 20265.0％
ROE
FY2030Approximately 9%
Actual results for the fiscal year ended March 202610.8％
NetD/EBITDA
FY2030Approximately 6x
Actual results for the fiscal year ended March 20263.7x
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
Cost¥-85 100 million
Decline in inbound tourism¥-25 100 million
Deterioration in domestic corporate earnings¥-20 100 million
Total¥-130 100 million
Number of employees
DX promotion key-person target
11,000 people
Target fiscal yearFY2030
Capital expenditures
¥26,000 100 million five-year total under the 2030 medium-term plan
Annual Dividend
Dividend forecast unchanged (dividend per share: Not disclosed)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥4,244 100 million (YoY -0.6%)
Operating profit¥559 100 million (YoY -11.7%)
Ordinary income¥521 100 million (YoY -12.6%)
Net income¥390 100 million (YoY -19.9%)
Results for the three months of the current quarterOperating revenue ¥4,244 100 million / Operating profit ¥559 100 million / Ordinary income ¥521 100 million / Profit attributable to owners of the parent ¥390 100 million / EBITDA ¥1,000 100 million
Full-year earnings forecastOperating revenue ¥18,290 100 million / Operating Expenses ¥16,640 100 million / Operating profit ¥1,650 100 million / Ordinary income ¥1,450 100 million / Profit attributable to owners of the parent ¥1,000 100 million / EBITDA ¥3,530 100 million / Non-consolidated transportation revenue ¥9,460 100 million
Progress against full-year forecastInbound revenue 25%
Self-assessment against the planPerformance has generally remained within expectations
Segment resultsMobility business Operating revenue ¥2,646 100 million (YoY +3.3%) / Operating profit ¥401 100 million (YoY -7.6%) / EBITDA ¥738 100 million (YoY -1.5%) / Distribution Business Operating revenue ¥539 100 million (YoY -4.7%) / Operating profit ¥37 100 million (YoY -26.4%) / EBITDA ¥51 100 million (YoY -22.7%) / Real Estate Business Operating revenue ¥585 100 million (YoY -9.2%) / Operating profit ¥120 100 million (YoY -16.0%) / EBITDA ¥211 100 million (YoY -10.2%) / Travel and regional solutions business Operating revenue ¥405 100 million (YoY -6.0%) / Operating profit ¥-7 100 million / EBITDA ¥-6 100 million
Breakdown of Factors Affecting the ChangeOperating profit Mobility business -33 / Distribution Business -13 / Real Estate Business -23 / Travel and regional solutions business -1 / Other -2 / Non-consolidated transportation revenue Domestic Demand 124 / Inbound Tourism 1 / Fading of the Expo effect -71 / Non-consolidated expenses Personnel Expenses 30 / Power and fuel costs -1 / Repair expenses 14 / Operating expenses 17
Key KPIsInbound revenue ¥209 100 million (YoY -5.0%) / International visitors to Japan 1,056 10,000 people (YoY -3.0%) / Shopping center sales ¥290 100 million (YoY +8.2%) / Hotel ADR ¥22,800 (YoY -2.0%) / Number of additional summer trains 4,738 bottles (YoY +14.0%)
Number of employeesDX promotion key-person target 11,000 people
Assumptions Underlying the Business OutlookCrude Oil Prices $100/B (average price for the fiscal year) / International visitors to Japan Down 800,000 due to the impact of the situation in the Middle East / GDP ▲0.3%
Risk amount incorporated into the outlookImpact of the situation in the Middle East Cost ¥-85 100 million / Decline in inbound tourism ¥-25 100 million / Deterioration in domestic corporate earnings ¥-20 100 million / Total ¥-130 100 million
Medium-term management plan targetsConsolidated operating income for fiscal year 2030 ¥2,300 100 million / Operating income from the lifestyle services and infrastructure solutions businesses ¥1,350 100 million / Share of operating income Approximately 60% / Group inbound revenue ¥1,110 100 million / Co-creation platform transaction volume ¥340 100 million / WESTER member transaction volume ¥4,700 100 million
Financial targetsROIC FY2030 Approximately 4% / Actual results for the fiscal year ended March 2026 5.0％ / ROE FY2030 Approximately 9% / Actual results for the fiscal year ended March 2026 10.8％ / NetD/EBITDA FY2030 Approximately 6x / Actual results for the fiscal year ended March 2026 3.7x
Annual DividendDividend forecast unchanged (dividend per share: Not disclosed)
Capital expenditures¥26,000 100 million (five-year total under the 2030 medium-term plan)
New initiativesCapital and business alliance with Resona Holdings and acquisition of a 20.0% stake in Kansai Mirai Bank (acquisition price: ¥90.0 billion), Launch of WESTER Mirai Bank (provisional name), Promotion of the Osaifu WESTER project, Launch of the J.NODE and AONA office brands, Opening of the south wing of Plico Nishi-Akashi, Operation of 4,738 additional summer trains, Implementation of various digital and tourism campaigns
Items this document does not state (10)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsPayout ratioAcquisition of treasury sharesOrders 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.

The factors cited include the fading of the Expo effect, increases in personnel expenses, labor costs, repair expenses and operating expenses due to inflation, and the impact of the situation in the Middle East on inbound demand. These effects were partly offset by solid domestic demand and growth in Shinkansen usage.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing for the First Quarter of the Fiscal Year Ending March 2027 | West Japan Railway Company (9021) timely disclosure | Komori