EURASIA TRAVEL Co.,Ltd. Q3 FY2025 earnings call

Company & Strategic Positioning

• ユーラシア旅行社 is a 39-year-old travel company offering custom-planned trips to 170 countries across Europe, Africa, Asia, Latin America, the Arctic, and Antarctica, with a core mission of providing travelers enriching experiences that expose them to diverse worldviews.
• The company has entered a re-expansion phase following the COVID-19 pandemic, and has designated 2025 as its "Year of Rebirth" to pursue full recovery and grow its customer base ahead of its 40th founding anniversary.

Core Operational Priorities

• The company has long prioritized building a strong financial foundation to prepare for crises, consistent with its history of steady, conservative management.
• Talent recruitment and training is the company's top focus: subsidiary ユーラシアサービス prioritizes developing high-quality in-house tour conductors trained in customer service excellence, which is considered the core of the company's operations.
• Post-pandemic recovery is ongoing: after expanding domestic travel during COVID-19 border restrictions, international travel has resumed and business is returning to pre-pandemic levels steadily.

Mid-Term Management Strategy

• The company has launched a new medium-term management plan ending in the 2029 September fiscal year, focused on increasing repeat business from existing customers who value intellectual and experiential travel, acquiring new customers, and evolving the company's value proposition to match changing market needs.
• A new 10%+ target for ROE has been set as the core financial goal for the plan; the current release is an outline highlighting after-tax net profit growth targets, with full details to be published after the 2025 September fiscal year full-year results announcement.

Capital Return Policy Update

• To improve ROE by limiting growth in equity (the denominator of ROE), the company has adopted a new dividend policy targeting 10%+ DOE (dividend on equity), defined as annual dividend divided by prior period-end consolidated shareholders' equity. This structure makes dividends predictable and stable, independent of annual earnings volatility.
• Based on the new DOE target, management forecasts annual dividends of 48 yen for FY2026, 47 yen for FY2027, 46 yen for FY2028, and 47 yen for FY2029.

This transcript does not break out financial performance into separately reported product segments. The only segment breakdown provided is geographic by destination: during the COVID-19 pandemic, domestic travel business was expanded, and international travel resumed in earnest in May 2023. As of the third quarter, business is recovering steadily, and management expects the international travel share of total revenue to increase as demand continues to recover and external risks abate. Consolidated cumulative third quarter results (2025 September fiscal year): operating revenue was 3.429 billion yen, up 5.3% year-over-year; operating profit was 52 million yen, up 72.3% year-over-year; ordinary profit was 67 million yen, up 8.7% year-over-year; net profit attributable to parent company shareholders was 56 million yen, up 8.0% year-over-year.

• Full-year 2025 September fiscal year earnings guidance is maintained from prior guidance: operating revenue of 5.2 billion yen, operating profit of 130 million yen, ordinary profit of 130 million yen, and net profit attributable to parent company shareholders of 110 million yen, with no changes.
• The full-year 2025 September fiscal year dividend forecast is upward revised from 14 yen to 31 yen per share, a 17 yen increase driven by the new 10%+ DOE target. The projected payout ratio rises from 47.0% to 104.0% following the revision.
• Management expects the share of international travel revenue to increase as international travel demand recovers and geopolitical and yen depreciation risks moderate.

• Geopolitical instability and sustained yen depreciation are cited as headwinds that could slow the recovery of international travel demand and delay the expected increase in the international travel revenue share.
• Without an increased payout ratio, growth in retained earnings would increase equity, which would prevent the company from hitting its 10%+ ROE target by acting as a drag on ROE growth even as net profit grows.

No question and answer section is included in the provided transcript.