Welcome!

.NET Authors: Trevor Parsons, Peter Silva, Yeshim Deniz, Pat Romanski, Adine Deford

News Feed Item

H.I.S. Reports Results for the Full Year Ended October 2012

Tokyo, Dec 14, 2012 - (JCN Newswire) - H.I.S. Co., Ltd. (TSE1: 9603), a leading travel and airline ticket agency, has announced results for the full year ended October 31, 2012. As the Group actively sought to increase share in the industry, consolidated net sales for the period rose 13.3% to 431,483 million yen, operating income rose 20.3% to 11,316 million yen, ordinary income rose 22.5% to 13,479 million yen, and net income also rose 12.4% to 9,331 million yen.

Within the travel industry, demand for overseas travel trended upward, supported by the continuing historically strong yen and growing travel opportunities for seniors. According to the Japan National Tourist Organization (JNTO), the (estimated) number of Japanese who departed the country from November 2011 through October 2012 is expected to have increased 10.9% year on year to a historically high of around 18,573,000 people, an increase of approximately 1,831,000 people.

Under these business conditions, the Group strove to improve the quality of its services and implemented various measures so that it could ensure strong demand in the travel business, the Group's main business segment.

- Travel Business

As for initiatives in the area of online travel sales, the Group completely renewed its online overseas airline ticket reservation site in November 2011 in order to strengthen ticket sales. In addition, several new services were introduced, such as a website that integrates reservations for overseas airline tickets and hotel booking in May 2012. Improvements were also made such as making the search and reservation pages more user friendly and simplifying procedures. In order to increase convenience, the Group also enhanced its smartphone application (e.g. H.I.S. overseas ticket reservations) and services provided through SNSs such as Facebook and LINE. Internet-based sales were firm.

As for sales channels, in East Japan, the Group restructured its network of branches with a focus on productivity and introduced mini-branches. In West Japan, the Group reinforced its sales system through various endeavors including opening a specialty branch in the headquarters in Umeda, Osaka. Moreover, efforts were made to further strengthen its sales system for overseas weddings by establishing overseas wedding/honeymoon counters at all of the Group's hundred branches throughout Japan and other measures.

Turning to group travel, the overall business was firm as sales of tours to see events at the London Olympics, which H.I.S. has become the official travel agent of for the first time, were extremely strong and orders for large-scale group trips (for corporate clients, various events, school trips, etc.) grew. As for corporate travel (corporate business trips), the Group has steadily increased the number of corporate clients through various endeavors including linking the corporate reservation system SFIDA-online to the overseas ticket search system, increasing convenience, and dispatching sales staff throughout the world to expand corporate contracts globally.

As for product development, the Group strengthened sales for charter flights (Jet Asia Airway flights to Bangkok, flights from areas throughout Japan to Hawaii, etc.), and these flights were used by many customers. Working to improve the "impresso" brand of guided tours, the Group developed extremely creative products, including one plan that involved renting out the Louvre Museum, and they were well received by customers. Efforts such as a commercial that Sei Hiraizumi, a popular Japanese actor, appeared in were used to strengthen marketing of its three-generation travel products to new groups of customers. The Group has worked to fully enter Japan's domestic travel industry, and within this business, the Group launched sales of not only tours that make use of low-cost carriers (LCC) that started flights this year but also products related to the business tie-up with All Nippon Airways at all the Group's branches. Furthermore, the domestic lodging reservation website Sumayado was launched in March 2012.

Turning to the business expansion overseas, the Group made further improvements to both its H.I.S VACATION business and the overseas out-bound business. The H.I.S. VACATION business involves Internet-based direct sales of products such as overseas hotel bookings and optional tours created or obtained by overseas offices to both Japanese and overseas travelers while the overseas out-bound business covers sales of locally-departing flights to non-Japanese customers, mainly in Asia. Furthermore, the Group launched an online reservation site for local overseas clients in Singapore, following the introduction of a similar site in Thailand. The Group will move forward with constructing sites that are closely tied to the local community throughout the world. In addition, the BtoB business, wholesale sales to other travel companies, steadily grew as staff conducted aggressive sale activities. As for branches, the Group continued to actively reinforce its network of branches, which included efforts such as expanding lounges in its branches in Nairobi, Kenya; Pusan, Korea (out-bound operations), and Guam.

As a result of the various measures discussed above and despite the effect of travel postponements and cancellations due to some diplomatic problems, the travel business was able to increase the number of passengers departing Japan that it handled during the current fiscal year. Therefore, the Group recorded an increase in both sales and income for the business, with sales rising 11.4% year on year to 407,304 million yen and operating income increasing 13.6% year on year to 11,384 million yen, which was for various reasons including sales activities that stressed productivity.

- Hotel Business

In the hotel business, the Group had two hotels in Australia and one in Sapporo, and added two new hotels during the fiscal year. The Watermark Hotel Nagasaki located in Nagasaki's HUIS TEN BOSCH and the Guam Reef Hotel located along the Tamon Bay on Guam were newly included in the scope of consolidation. The Group strove to improve customer satisfaction and profitability at all hotels, and sales rose 24.5% year on year to 2,784 million yen for the business, but the Group recorded an operating loss of 232 million yen for the business.

- Theme Park Business

HUIS TEN BOSCH Co. Ltd. which celebrated the twenty-year anniversary of its founding, worked to increase the quality of the theme park, improved its customer draw, and reduced expenses. The company enhanced well received events that were designed to attract customers. These events included Gardening World Cup, Kingdom of Light, and the Rose Festival. Furthermore, events that have remained extremely popular, such as the Hanabi (Fireworks) World Cup, contributed to stronger customer draw. As for new attractions, in addition to winning a bid for the White Ferris Wheel in November 2011, HUIS TEN BOSCH introduced Adventure Park in March 2012, the Thriller Fantasy Museum in May, and ONE PIECE Ride Cruise - FOR THE NEW WORLD - in Huis Ten Bosch in July 2012, increasing the value of visiting the park. The Huis Ten Bosch Art Museum hosted Visionary Art the Gogh Exhibition since July in commemoration of the twenty-year anniversary of the opening of the museum, and the exhibition has been warmly received. As a result, sales rose 19.3% year on year to 15,957 million yen and operating income increased 166.9% year on year to 2,639 million yen for the business.

- Transportation Business

On February 29, 2012, the Ocean Rose, which is operated by HTB CRUISE Co., Ltd., made its maiden cruise from Nagasaki to Shanghai. Although full operations were launched with higher quality cruises on July 25, the Group recorded 157 million yen in sales and an operating loss of 1,142 million yen for the business because of diplomatic problems.

- Kyushu Sanko Group

In order to strengthen domestic travel in Japan and promote travel to Japan, H.I.S. purchased additional shares of KYUSHU INDUSTRIAL TRANSPORTATION HOLDINGS CO., LTD., turning the company into a consolidated subsidiary. The Kyushu Sanko Group, the holding company of KYUSHU INDUSTRIAL TRANSPORTATION HOLDINGS CO., LTD., recorded 6,137 million yen in sales and recorded 275 million yen in operating income. The company has only been included in the scope of consolidation for three months, July-September 2012.

I. Consolidated Financial Results for the Full Year Ended October 31, 2012

Consolidated Operating Results (millions of yen)
------------------------------------------------------------------------
Full year ended October 31, 2012 % 2011 %
------------------------------------------------------------------------
Net Sales 431,483 13.3 380,805 9.4
Operating Income 11,316 20.3 9,407 49.8
Ordinary Income 13,479 22.5 11,005 119.2
Net Income 9,331 12.4 8,300 145.2

Net Income/Share (y) 287.77 255.96
Fully Diluted
Net Income/Share (y) -- --

Return on Equity (ROE) 14.3 14.0
Return on Assets (ROA) 8.6 8.5
Ordinary Income to
Operating Revenue Ratio 2.6 2.5
------------------------------------------------------------------------
Consolidated Financial Position
------------------------------------------------------------------------
As of October 31, 2012 2011
------------------------------------------------------------------------
Total Assets 173,497 139,018
Shareholders' Equity 76,763 65,589
Shlders' Eqty Ratio (%) 39.0 45.3
Shlders' Eqty/share (y) 2,088.35 1,942.32
------------------------------------------------------------------------
Consolidated Cash Flows
------------------------------------------------------------------------
Full year ended October 31, 2012 2011
------------------------------------------------------------------------
Cash Flow from Operating Activities 9,577 18,464
Cash Flow from Investing Activities (18,250) (18,147)
Cash Flow from Financing Activities (295) (1,843)
Cash and Cash Equivalents at Period End 35,821 44,703
------------------------------------------------------------------------

II. Forecast for the Fiscal Year Ending October 31, 2013
------------------------------------------------------------------------
Interim % Full year %
------------------------------------------------------------------------

Net Sales 230,000 14.3 490,000 13.6
Operating Income 6,500 29.0 15,000 32.5
Ordinary Income 7,500 16.5 17,000 26.1
Net Income 4,300 3.9 10,000 7.2
Net Income / Share (y) 132.61 308.39
------------------------------------------------------------------------

The global economic environment will likely remain uncertain due to some diplomatic problems, but within the travel industry, travel demand is expected to rise for various reasons including the spread of LCCs in Japan, new routes from overseas, and greater travel opportunities for seniors. On the other hand, we project that it will become more important to respond to market changes, such as diversification of points of contact with customers and fiercer competition within the industry both in Japan and overseas that includes airline companies that are promoting direct sale of products.

Under these business conditions, within the travel business, the Group's core segment, the Group will strive to improve its safety, security, service, and quality; focus on generating synergies within the group; deftly respond to customer needs, including making a foray into the cruise business and aggressively using charter flights; develop original products and services for the global market; and rapidly implement measures in order to expand and broaden the travel business for both flights departing from Japan and locally overseas. In addition, the Group will promote expansion with a greater awareness of productivity and efficiency and further increase earnings, and this will involve various activities including sales operations that take into consideration sales channels and conducting promotions to generate demand based on an awareness of the medium's characteristics.

HUIS TEN BOSCH Co., Ltd. will exert its originality and creativity to develop entertainment and events and move forward various new projects. The company will strive to realize further growth through various endeavors, including holding the From No.1 of the East to No.1 of the world - Kingdom of the Light with 10 million illumination bulbs (from November 23, 2012 - March 10, 2013); opening i-4, a dome theater with 360 degrees panoramic view on November 23, 2012; and introducing The Maze, a massive five-story maze that is on one of the largest in the world, in the spring of 2013 (expected to open March 1, 2013).

In addition, the Group announced the founding of an international charter airline company on December 4, 2012, and the company plans to make its first flight in the summer of 2013 and is in preparation for this flight.

III. Dividends
(yen)
------------------------------------------------------------------------
Year ended 2013 (Forecast) 2012 2011
------------------------------------------------------------------------
34.00 34.00 32.00
------------------------------------------------------------------------

The Company expects to pay a year-end dividend of 34 yen per share. As for the dividend for the next fiscal year, the Group plans to pay an annual common dividend of 34 yen per share to ensure sustainable and stable profit sharing. However, the Company will remain flexible in responding to the situation, if performance worsens in uncertain market conditions.

About H.I.S. Co., Ltd.

H.I.S. Co., Ltd. was founded in 1980 and pioneered the Japanese discount airline ticket industry. Today the H.I.S. Group is comprised of 89 subsidiaries and 9 affiliated companies around the world, and has become a leader in the Japanese travel industry. For more information, please visit http://www.his.co.jp/english/ .



Source: H.I.S. Co., Ltd.

Contact:
H.I.S. Co., Ltd.
Manabu Shimizu
Corporate Planning Division
Tel: +81-3-5908-2070
Fax: +81-3-5908-2423
Email: [email protected]


Copyright 2012 JCN Newswire. All rights reserved. www.japancorp.net

More Stories By JCN Newswire

Copyright 2008 JCN Newswire. All rights reserved. Republication or redistribution of JCN Newswire content is expressly prohibited without the prior written consent of JCN Newswire. JCN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.