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Edited Transcript of 9024.T earnings conference call or presentation 6-Feb-20 10:59am GMT

Q3 2020 Seibu Holdings Inc Earnings Call

Tokorozawa-Shi, Saitama Feb 11, 2020 (Thomson StreetEvents) -- Edited Transcript of Seibu Holdings Inc earnings conference call or presentation Thursday, February 6, 2020 at 10:59:00am GMT

TEXT version of Transcript

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Presentation

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Unidentified Company Representative, [1]

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I will now give you an overview of our financial results for the first 9 months of the fiscal year, using the overview of the financial results presentation.

Please turn to Page 2. Consolidated operating revenue increased JPY 10.9 billion, due to the factors outlined on the page. We also achieved growth in operating profit, ordinary profit and profit attributable to owners of parent.

Please see Pages 3 and 4 for the highlights of each segment. Typhoon Hagibis led to JPY 1.6 billion or so of negative impact on operating revenue. The Hotel and Leisure segment was most impacted by around JPY 1.1 billion due to cancellations and the suspension of operations. The Urban Transportation and Regional segment had roughly JPY 400 million of impact due to planned suspensions of operations in our rail and bus businesses. There was also around JPY 100 million of impact to the Izuhakone business, which is part of the Other segment.

As outlined at the bottom of Page 2, we have revised down our full year forecast, and I will go over the details later.

Please turn to Page 12. These are the key indicators of our hotel operations. The overall RevPAR for the 9 months was up 3.1% year-on-year. The growth rate slowed in our third quarter or the October to December period, compared to the first half. The hosting of the Rugby World Cup was positive. However, there was negative impact from the typhoons as well as the relative weakness in group demand, which serves as the base portion of reservations in our revenue management.

Please turn to Page 14. These are the inbound trends. The number of customers declined 1.2% year-on-year with Taiwan and South Korea being the weakest. Meanwhile, inbound room revenue increased 7.6% year-on-year, driven by growth in the number of guests from North America, Europe and Australia.

Please turn to Page 16. This is the status of MICE, or meetings, incentives, conventions and exhibitions. Although, MICE-related revenue increased, the growth rate slowed down due to the demand for meetings being weaker in some industries.

Please see Page 23. This page is about the extraordinary losses. We booked expenses incurred in restoring facilities at our hotels, golf courses, ski resorts, et cetera, that were damaged by the typhoons as loss on disaster. We also made provisions for additional expenses expected in the future in the provision for loss on disaster.

Please see Page 26. This is our forecast for the full year. Based on the results for the first 9 months as well as our outlook, we lowered our forecast for operating revenue by JPY 10.6 billion and operating profit by JPY 3.5 billion. The main factors behind this include: In our hotel business, the number of group guests being weaker than expected and the slowdown in reservations from individuals as well as the cancellations expected resulting from the coronavirus; the sale of land in our Hawaii business not taking place; and the impact from natural disasters such as Typhoon Hagibis in our Hotel and Leisure business.

The negative impact can actually be larger depending on the outcome of the coronavirus. Please see Pages 27 and 28 for the major factors in each segment.

That's all from me. Thank you.