EURASIA TRAVEL Co.,Ltd. Q4 FY2026 earnings call

• Company Background & Core Philosophy • Founded in 1986, the company has always differentiated itself from mass-market "cheap, close, short" tours by offering high-engagement, specialized travel focused on curiosity and deep cultural experiences. • Core purpose is to create essential opportunities to deepen life through real, in-person cross-cultural experiences, prioritizing non-efficiency value that cannot be replicated by digital information or AI. • Has maintained zero-debt management since founding, building a strong financial buffer to withstand crises, and prioritizes sustainable operations given the travel industry's exposure to geopolitical and natural disaster risks. • Core competitive advantages in-house end-to-end operation of all travel steps (planning, sourcing, marketing, escorting), all staff have global escort experience, and a focus on transparency and safety.

• Strategic Positioning • Positions itself in the underserved upper-right market quadrant of specialized, planning-intensive travel for high-curiosity customers, avoiding the mass-market, AI/automation-competitive OTA/discount travel segment. • The company sees the challenging industry environment (low barriers to entry, inflation, yen-driven cost increases, increasingly sophisticated and diverse customer demand) as an opportunity, because there is sustained market demand for high-value real experiences and specialized services that cannot be replicated by AI or online platforms. • Key strategic goals: Become the top brand for themed and off-the-beaten-path travel, develop untapped potential markets, and grow the overall market segment for this type of travel.

• Operational Growth Priorities • Existing business: Rebuild brand identity, develop the special interest tour (SIT) market, build digital infrastructure, enhance high-touch customer service, and invest in staff skill development. • New business: Scale the inbound travel business and build organizational capacity for increased volume. • Digital Transformation (DX): Leverage staff experience (tacit knowledge) to improve customer experience, use data to improve sales channel efficiency and profitability, and deploy AI/data to better target current customer needs. • Sustainability: Has prioritized sustainable under-tourism (the opposite of over-tourism) since founding, with direct local transactions that support local economies; post-COVID, it has been officially recognized as a partner for Japan's national park and Japanese heritage sustainable tourism programs.

1. ユーラシアの旅: Contributes approximately 90% of total revenue and profit. It currently offers ~360 itineraries across 170 countries, with average trip length of 15 days. During the COVID-19 pandemic, the domestic Japan segment (counted as one of the 170 destinations) grew 2x-3x in both revenue and profit compared to pre-COVID levels, and has remained stable post-pandemic. The business is currently seeing V-shaped recovery after COVID. 2. World Cruise Business: Focuses on niche cruise offerings including foreign-flagged vessels, river cruises, and sailing cruises, and is a pioneer in river cruises and polar (Arctic/Antarctic) expedition cruises. 3. Personal Travel Business: Offers customizable model travel plans with dedicated staff support, competing on added value rather than price. 4. Organizer Travel Business: Leverages the company's existing industry networks to create specialized experiences, such as expert/influencer-led tours. 5. Inbound Business: A post-COVID startup that serves inbound travelers from underrepresented source markets, including accessible/universal tourism planning for disabled visitors, and is positioned for steady growth. 6. Bridge Business: Supports Japanese companies/individuals with overseas expansion facilitation and advisory in niche global markets, drawing on the company's extensive global network.

• The 4-year mid-term plan (2026/9 to 2029/9) targets achieving ROE of 10% or higher by the end of the period.
  • Management targets after-tax net profit at the end of the mid-term period to reach 203.5% of the September 2025 level.
  • The company has set a dividend target of 10% or higher DOE (Dividend on Equity), calculated as current period dividend divided by prior period ending shareholder equity. This policy is maintained through the end of the mid-term period in 2029/9.
  • The 2026/9 projected dividend per share calculated under this new policy is 50 yen, which was already publicly disclosed in November 2025.
  • The company plans a net increase of approximately 10 new hires per year across the group over the mid-term plan period.

• The travel industry has low entry barriers, with frequent new entry from other industries, creating intense competitive pressure.
  • External macroeconomic factors including inflation and yen depreciation directly increase input/sourcing costs for travel products.
  • Customer preferences are increasingly diversified and sophisticated, requiring the company to constantly adapt to higher customer expectations.
  • The travel industry is inherently exposed to geopolitical risks and natural disaster risks that can disrupt operations and demand. • The company mitigates geopolitical risk by only operating in regions rated Level 1 or lower by Japan's Ministry of Foreign Affairs, prioritizing safety management over expansion into higher-risk untapped markets.
  • As of July 2025, the company's ROE was 5-6%, which is below the market-expected 8-10% return, and PBR traded around 1x (with periods below 1x), creating pressure to improve financial performance to meet market expectations.

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