Summary

Eurasia Travel Co., Ltd. was established in 1986 and is a travel company that offers original sightseeing tours in more than 170 countries. Targeting primarily mature adults in their 50s to 70s who seek intellectual fulfillment, the company proposes in-depth travel experiences centered on the themes of “nature,” “culture,” “art,” and “humanity.” Its business model integrates planning, operations, and sales entirely in-house, differentiating itself from competitors by providing high-quality services through dedicated, in-house tour conductors.

For the fiscal year ended September 2023, the company recorded operating revenue of ¥4,787.7 million and operating income of ¥115.1 million, achieving a 4.1% year-on-year increase in revenue. The recovery in outbound travel demand significantly contributed to this performance, and the company’s earnings recovery over the past three years has been particularly notable. Under its medium-term management plan (FY2026–FY2029), the company aims to enhance the quality of travel by focusing on three pillars: customer experience, employee growth, and contribution to local communities. It is also advancing operational efficiency through digital transformation (DX)

 and developing new travel products, particularly those tailored to seniors and corporate clients. In addition, the company is strengthening its efforts in inbound tourism and new business development to achieve sustainable growth. For investors, key evaluation criteria include earnings recovery, progress under the medium-term plan, and transparency in shareholder return policies. Risk factors include performance volatility, industry-specific risks, financial and managerial risks, overseas expansion risks, and ESG-related risks, all of which require appropriate understanding and mitigation. The company continues to pursue strategies aimed at delivering high-quality services aligned with customer needs and achieving sustainable growth.

1. Overview of Cumulative Results for the Fiscal Year Ended September 2023

In the fiscal year ended September 2023, Eurasia Travel recorded operating revenue of ¥4,787.7 million, representing a 4.1% year-on-year increase. This was largely attributable to the easing of COVID-19 impacts and the recovery in outbound travel demand. Operating income totaled ¥115.1 million, ordinary income ¥123.9 million, and net income attributable to shareholders of the parent ¥113.9 million, with all profit categories exceeding the previous year’s results.

Looking back over the past three years, revenue declined sharply to ¥224.4 million in 2020 due to the pandemic, but subsequently recovered in stages to ¥502.1 million in 2021 and ¥2,945.4 million in 2022. From 2022 to 2023, the growth rate reached 586.7%, driven by a review of existing travel products, stronger approaches to new markets, and a stable inflow of repeat customers.

An analysis of the FY2023 income statement shows revenue of ¥4,787.7 million, operating expenses of ¥3,885.1 million, and gross profit of ¥902.6 million, resulting in a gross margin of approximately 18.9%, an improvement compared to historical averages. SG&A expenses were contained at ¥787.5 million, slightly lower than the previous year. Non-operating income of ¥8.7 million contributed to ordinary income of ¥123.9 million.

On the balance sheet, total assets as of September 2023 stood at ¥3,219 million, up 9.8% year-on-year. Total liabilities increased 16.2% to ¥1,374 million; however, the equity ratio remained solid at 57.3%, and the company continued operating without interest-bearing debt. In the statement of cash flows, cash flow from operating activities improved significantly to ¥349.7 million from ¥145.8 million the previous year, supported particularly by advances received from customers and sales of travel products, enhancing cash quality.

Overall, Eurasia Travel has demonstrated a clear recovery trend, and its strategies aligned with customer needs are progressing steadily. Maintaining a distinctive lineup of products and services will remain critical amid industry competition.

2. Earnings Outlook for the Fiscal Year Ending September 2023

For the fiscal year ending September 2023, the company forecasts operating revenue of ¥5,000 million, operating income of ¥150 million, ordinary income of ¥140 million, and net income attributable to shareholders of the parent of ¥120 million—representing expected year-on-year growth.

The recovery in outbound travel demand is anticipated to drive performance, supported by increased customer advances and a stable base of repeat travelers. After the sharp revenue decline in 2020 due to the pandemic, results recovered gradually from 2021 through 2023, with the 586.7% growth rate from 2022 to 2023 highlighting the strength of the rebound. The company expects this growth trend to continue.

Eurasia Travel plans to further strengthen its approach to new markets, particularly by developing travel products targeting intellectually curious middle-aged and senior customers. Advancing digital transformation will also be a key strategy to enhance customer experience and improve operational efficiency. To maintain differentiation in an increasingly competitive market, the company must continue delivering high-quality services. Product development related to discovery tourism and sustainable travel is expected to attract customer interest. The company remains committed to prioritizing customer satisfaction while pursuing sustainable growth.

3. Medium- to Long-Term Growth Strategy

Eurasia Travel has formulated a medium-term management plan covering the fiscal years from September 2026 to September 2029 under the philosophy: “Broaden your horizons through authentic encounters with different cultures—bring travel into your life.” The plan aims to enhance the quality of travel experiences.

In response to diversifying customer needs and the demands of digital transformation, the company recognizes that improving profitability requires both cultivating new markets and deepening relationships with existing customers. The plan is built around three pillars: customer experience, employee growth, and contribution to local communities. The company emphasizes that higher employee satisfaction directly contributes to improved customer satisfaction.

Over the next five years, the company aims to increase operating revenue from ¥4,787 million to ¥6,506 million and achieve 292% growth in operating income. Key initiatives include strengthening corporate culture and adopting digital technologies, particularly AI and digital marketing, to improve customer retention rates. The development of environmentally conscious sustainable travel products, specialized travel offerings, and the promotion of undertourism are also positioned as important measures, contributing to regional economies and enhancing corporate value.

In terms of investment policy, the company prioritizes capital investment and R&D, particularly in digitalization, which is expected to improve operational efficiency and create new customer experiences. Performance indicators include revenue growth and operating income expansion, with a target of 292% operating income growth and an ROE exceeding 10% by the fiscal year ending September 2029.

Regarding risk management, the company emphasizes transparent oversight while addressing external environmental changes and risks associated with digital transformation. Its execution framework promotes smooth interdepartmental communication and regular progress reviews to facilitate flexible strategic adjustments.

By delivering high-quality services that meet customer needs and pursuing sustainable growth, Eurasia Travel aims to solidify its position within the travel industry.

・ Eurasia Travel recorded operating revenue of ¥4,787.7 million for the fiscal year ended September 2023, up 4.1% year-on-year, with all profit categories exceeding the previous year.

・ For the fiscal year ending September 2023, the company forecasts operating revenue of ¥5,000 million, operating income of ¥150 million, ordinary income of ¥140 million, and net income attributable to shareholders of ¥120 million, driven by the recovery in outbound travel demand.

・ Under its medium-term management plan (FY2026–FY2029), the company aims to increase operating revenue from ¥4,787 million to ¥6,506 million and achieve 292% growth in operating income, focusing on customer experience, employee growth, and regional contribution.

Business Overview

1. Overview of the Business Model

Eurasia Travel Co., Ltd. was established in 1986 and provides original sightseeing tours across more than 170 countries. It primarily targets mature, socially established individuals in their 50s to 70s who seek intellectual fulfillment, offering travel experiences centered on the themes of “nature,” “culture,” “art,” and “humanity.” These themes enable travelers to engage in deeper exploration beyond conventional tourism, delivering distinctive educational value.

The company enhances the quality of its travel products through an integrated business model in which planning, operations, and sales are conducted entirely in-house. A key differentiator is the accompaniment of dedicated tour conductors, who provide both reassurance and in-depth knowledge to travelers. In recent years, the company has also emphasized operational efficiency through digital technologies and service enhancements through customer data utilization, strengthening long-term customer relationships.

From an investor’s perspective, noteworthy aspects include how this distinctive structure contributes to profitability and how clearly defined strategies help sustain competitive differentiation. Sensitivity to evolving travel industry needs and continuous efforts to enhance customer experience will be critical drivers of future growth.

2. Main Business Segments

Eurasia Travel’s operations are primarily divided into the following segments:

1. Escorted Overseas Tours (“Eurasia Travel”)
   This core segment offers tours themed around nature, culture, and art. Groups are typically limited to a maximum of 19 participants, ensuring small-group travel. Travel insurance proposals are also provided, enabling a personalized and secure experience.

2. Domestic Travel
   Based on the same philosophy as its overseas tours, the company develops travel products that highlight unique regional culture and natural attractions within Japan. These offerings contribute to rediscovering regional value and support the recovery of domestic travel demand.

3. Independent Overseas Travel (FIT – Fully Independent Travel)
   Customized travel plans tailored to customers’ preferred styles are offered, with a strong emphasis on high-value-added services. AI and digital initiatives play an increasingly important role in enhancing this segment.

4. Corporate Travel
   The company provides business inspection tours, employee trips, and other corporate travel plans, addressing the needs of business users. This segment represents opportunities in non-consumer markets and offers potential for new client acquisition.

5. Specialized Travel
   Including barrier-free tours for elderly travelers and persons with disabilities, this segment addresses specialized needs and enhances business diversity.

These segments represent strategic responses to changing customer needs and market conditions. In particular, the company’s ability to address the individualized needs of senior travelers and corporate clients contributes significantly to customer satisfaction.

3. Market Position and Competitive Advantages

Eurasia Travel has established a differentiated market position by offering journeys designed for intellectually curious travelers. Its distinctive products themed around nature, culture, and art are a major reason for its strong customer support. Amid intensifying competition, high-quality service delivered by dedicated tour conductors provides customers with reassurance and satisfaction.

Its competitive advantages include several key factors. First, the uniqueness of its specialized travel products, which offer in-depth experiences beyond typical tourist destinations. Second, the provision of high-quality service through dedicated tour conductors, fostering customer trust and expanding the client base. Additionally, the company’s ability to refine products based on prompt customer feedback enables flexible responses to evolving needs.

From an investment standpoint, it is important to consider whether factors underpinning the company’s competitive advantage—particularly strengthened customer touchpoints and enhanced service quality—translate into improved financial performance. Maintaining a strong position in its niche market while pursuing further growth through technological innovation and marketing evolution will be essential.

4. Market Background

The travel industry is currently in a recovery phase following COVID-19, and shifting customer needs and market dynamics present new challenges. Looking ahead, growth is expected particularly among individual travelers and those seeking intellectually enriching experiences. Rather than merely visiting tourist destinations, travelers increasingly pursue meaningful experiences and cultural understanding. The themed travel products offered by Eurasia Travel align closely with this trend.

In addition, the inbound tourism market is recovering, and growth in visitors to Japan is expected to positively impact the domestic travel industry. Advances in digital technology have also expanded travelers’ options for gathering information and planning trips, making customer relationship building even more important.

External factors to consider include economic uncertainty and geopolitical risks. In response, travel companies must adopt flexible pricing strategies and emphasize safety in customer communications. Promotions that enhance customer reassurance and diversification of travel products are important measures for increasing repeat customers.

Against this backdrop of market change, Eurasia Travel is expected to continue evolving its business strategy to achieve sustainable growth. Providing travel experiences that satisfy intellectual curiosity and building long-term relationships with customers will be essential to its continued success.

5. Future Outlook

Key areas of focus for Eurasia Travel’s future growth include digital transformation (DX) and the development of new travel product lines. Initiatives are underway to leverage AI and data analytics to enhance customer experiences and improve operational efficiency. As competition intensifies, maintaining differentiation will require the continued delivery of high-quality services. In particular, product development related to discovery tourism and sustainable travel has the potential to attract significant customer interest.

At the same time, rapid responses to external risks arising from international developments and economic fluctuations will be necessary. Providing customers with information that emphasizes safety and reassurance, along with diversifying travel offerings, will be key growth drivers.

By delivering travel products aligned with customer needs and maintaining high service quality, Eurasia Travel is expected to solidify its position within the travel industry. Its sensitivity to market trends and willingness to evolve in line with the times will underpin its future development.

Going forward, the company is expected to continue adapting to changes in the travel industry and delivering innovative services that exceed customer expectations, creating truly exceptional travel experiences.

Performance Trends

1. Overview of Recent Performance

Eurasia Travel Co., Ltd. recorded operating revenue of ¥4,787.7 million for the fiscal year ended September 2023, representing a 4.1% year-on-year increase. This improvement was largely attributable to the easing of COVID-19 impacts and the recovery in outbound travel demand. The company also posted operating income of ¥115.1 million, ordinary income of ¥123.9 million, and net income attributable to shareholders of the parent of ¥113.9 million, with all profit categories exceeding the previous year’s results.

Looking back over the past three years, revenue declined sharply to ¥224.4 million in 2020 due to the pandemic, but subsequently recovered in stages to ¥502.1 million in 2021 and ¥2,945.4 million in 2022. The growth from 2022 to 2023 was particularly notable, reaching 586.7%.

This growth was driven by a review of existing travel products, strengthened approaches to new markets, and a stable inflow of repeat customers. Going forward, further profit improvement will be required, and flexible responses to intensifying competition and changing market needs will be critical.

2. Analysis of the Income Statement

An analysis of the FY2023 income statement shows revenue of ¥4,787.7 million, operating expenses of ¥3,885.1 million, and gross profit of ¥902.6 million. The gross profit margin improved to approximately 18.9%, reflecting better performance compared to historical averages. This improvement is believed to result from enhanced cost control in sales and administrative management and more efficient personnel allocation.

SG&A expenses were contained at ¥787.5 million, slightly lower than the previous year, demonstrating operational discipline that supports future growth. Non-operating income totaled ¥8.7 million, contributing to ordinary income of ¥123.9 million. In particular, stable foreign exchange gains supported the earnings base.

Careful attention to corporate taxes and appropriate measures regarding extraordinary expenses resulted in net income of ¥113.9 million, reflecting the company’s earnings-generating capacity. Continued cost management combined with efficient promotional activities provides a foundation for stable growth going forward.

3. Analysis of the Balance Sheet

As of the end of September 2023, total assets stood at ¥3,219 million, up 9.8% year-on-year. This increase was mainly due to a rise in cash and cash equivalents. Advances received from customers also increased steadily, ensuring solid liquidity.

Total liabilities amounted to ¥1,374 million, up 16.2% from the previous year, reflecting a temporary increase in liabilities associated with operating activities. The equity ratio remained strong at 57.3%, and the company continued to operate without interest-bearing debt, enhancing its reliability from an investor perspective.

Effective management of current liabilities and efficient utilization of assets remain important. The company maintains liquidity while leveraging advance payments from customers, providing a sound foundation for future growth.

4. Analysis of the Cash Flow Statement

In FY2023, cash flow from operating activities improved significantly to ¥349.7 million from ¥145.8 million the previous year. Advances from customers and sales of travel products contributed to improved cash flow quality.

Cash flow from investing activities was negative ¥36.7 million, reflecting temporary capital expenditures, but these are considered healthy investments aimed at long-term growth. Cash flow from financing activities was negative ¥51.6 million. As the company maintains a debt-free management policy, there is no need for loan repayments, though preparations for capital policy initiatives are underway.

Overall, stable operating cash flow provides room to support future growth. Securing free cash flow will remain a key factor in executing the company’s growth strategy.

5. Analysis of Key Performance Indicators

Key financial indicators such as ROE (Return on Equity) and ROA (Return on Assets) are important measures of the company’s financial soundness. In FY2023, ROE recovered from negative territory to 6.3%, indicating progress toward achieving management plan targets.

ROA stood at 3.5%, and further improvement will be necessary in the future. EBITDA also recovered steadily, reaching ¥132.9 million. However, continued growth will require the execution of growth strategies and the development of new businesses in response to shifts in customer preferences.

Improvement in performance indicators is essential for sustainable growth and enhanced corporate value, and continued focus on these metrics will be required.

Summary

Eurasia Travel demonstrated a clear recovery trend in 2023, with steady progress in strategies aligned with customer needs. Improvements across various financial indicators were observed, particularly strong cash flow performance supporting sustainable growth.

Going forward, providing highly distinctive products and services will be crucial amid industry competition. Strategic initiatives such as expansion into new markets and the promotion of digital transformation will be key to unlocking further growth potential.

Medium-Term Management Plan / Growth Strategy

1. Business Environment and Key Issues

The medium-term management plan formulated by Eurasia Travel Co., Ltd. covers the period from the fiscal year ending September 2026 through September 2029 and focuses primarily on enhancing the quality of travel. Under its philosophy—“Broaden your horizons through authentic encounters with different cultures—bring travel into your life!”—the company aims to deepen ties with local communities and provide travel experiences with unique value.

In recent years, the travel industry has undergone significant changes due to COVID-19. Customer needs have diversified, and preferences in both domestic and international markets have evolved rapidly.

One key challenge is improving profitability in travel operations. Expanding the customer base requires cultivating new markets while deepening relationships with existing customers. In addition, responding effectively to digital transformation (DX) is essential. By leveraging DX, the company seeks to enhance customer experiences and improve operational efficiency. Addressing these challenges will require employee training, streamlined operations, and rapid responsiveness to customer needs.

From an expert perspective, this awareness of the business environment forms a critical foundation for future growth. For investors, how the company confronts these challenges and implements solutions serves as an important indicator of sustainability and growth potential.

2. Overall Strategic Framework

The company’s medium-term management plan is not merely aimed at short-term earnings improvement; it incorporates a long-term vision for sustainable growth. The strategy is built on three core pillars: customer experience, employee growth, and contribution to local communities. In particular, improving employee satisfaction is viewed as directly linked to enhancing customer satisfaction.

As a travel planner and provider, the company emphasizes close engagement with the cultures and environments of destination countries. By contributing to local economies, it seeks to enhance corporate value. Furthermore, by utilizing historical travel data to analyze customer preferences and trends, the company aims to deliver more tailored and sophisticated services.

Based on this strategy, the company targets an increase in operating revenue from ¥4,787 million to ¥6,506 million over five years, alongside 292% growth in operating income. These clear numerical targets provide a strong signal to investors and may enhance corporate credibility.

3. Key Initiatives (Domestic / Overseas / By Business Line)

Major initiatives under the medium-term plan include strengthening corporate culture and improving operational efficiency through digital technology.

In terms of corporate culture, the company aims to create an environment in which employees can grow proactively, with expanded education and training programs. By increasing employee motivation and expertise, service quality for customers is expected to improve accordingly.

The company also plans to accelerate the adoption of digital technologies. Company-wide DX investment is expected to generate new customer experiences and improve operational efficiency. Specifically, the introduction of AI technologies and enhanced digital marketing are anticipated to increase customer retention rates. Strengthening digital sales channels will expand customer touchpoints and reinforce overall sales strategies.

Additionally, the development of environmentally conscious sustainable travel products, niche specialized travel offerings, and the promotion of undertourism are included as key initiatives. These measures contribute directly to regional economies and reinforce the company’s social responsibility.

4. Investment Policy (Capital Expenditures / R&D, etc.)

The company’s investment policy places particular emphasis on capital expenditures and research and development. Investment in digitalization will form the foundation for both operational efficiency and the creation of new customer experiences. Through the implementation of AI and digital marketing tools, the company aims to attract new customers and increase repeat business.

Investment in employee development is also a key priority. Enhancing professional knowledge and service capabilities in the travel industry—particularly through expanded training programs for younger employees—is considered essential. Such investment strengthens trust-based relationships with customers and ultimately improves service quality.

From a long-term perspective, these investments are expected to directly strengthen the company’s competitiveness. For investors, the extent to which these initiatives succeed and contribute to growth will be an important area of interest.

5. Expected Outcomes and KPIs

The medium-term management plan sets revenue growth and operating income expansion as key performance indicators. By the fiscal year ending September 2029, the company aims to increase revenue to approximately ¥6,506 million, achieve 292% growth in operating income, and raise ROE (Return on Equity) to over 10%. These specific targets provide a clear roadmap for execution.

In addition to financial metrics, improvements in customer satisfaction and employee engagement are positioned as important KPIs. By creating an environment in which employees can grow autonomously, the company expects to deliver high value-added services and increase repeat customers. Thus, the plan emphasizes not only numerical targets but also sustainable growth that incorporates customer experience and social responsibility.

6. Approach to Risk Factors

Risk management is an extremely important component in executing the medium-term plan. How the company addresses bottlenecks and uncertainties will determine the plan’s success. Particular attention must be paid to changes in the external environment, including market fluctuations and challenges associated with the recovery of travel demand.

Risks associated with advancing digital transformation must also be considered. Technical failures or cybersecurity vulnerabilities could lead to data breaches or reputational damage. Strengthening internal education and information security measures will therefore be essential.

For investors, the company’s approach to managing such risks enhances credibility. Transparent risk management practices increase investor confidence and support sustainable growth.

7. Execution Structure

A robust execution framework is essential for implementing the medium-term management plan. The company operates under clearly defined roles and responsibilities, with all departments working cohesively toward shared objectives. Facilitating smooth interdepartmental communication promotes effective information sharing.

Regular progress reviews and feedback mechanisms are in place to allow strategic adjustments as needed. This structure enhances flexibility in responding to changes in the external environment. Internally, fostering a culture that promotes innovation is also seen as vital to organizational vitality.

For investors, the establishment of a strong execution structure enhances corporate reliability and supports confidence in the success of the strategy.

The medium-term management plan and growth strategy of Eurasia Travel provide a comprehensive framework for pursuing sustainability and long-term growth. As such, the company represents an attractive investment opportunity. Close attention will be paid to how effectively the company executes this plan and delivers tangible results in the years ahead.

News & Topics

1. Formulation of the Medium-Term Management Plan and Its Significance

Eurasia Travel Co., Ltd. has formulated a medium-term management plan covering the fiscal years from September 2026 through September 2029. The plan aims to maintain competitiveness in a rapidly evolving tourism market and achieve sustainable growth. Given the significant impact of COVID-19 on the travel industry, adapting services to increasingly diverse customer needs has become essential.

The plan includes strengthening the planning and sales of travel products, promoting digitalization, and enhancing human capital. In particular, it features many initiatives targeting middle-aged and senior customers who value intellectual curiosity. These measures are designed not only to restore performance but also to enhance long-term corporate value. For investors, the presentation of a clear strategy makes it easier to assess the company’s growth potential.

However, successful execution will require responsiveness to changes in the economic environment and competitive landscape. In particular, fluctuations in travel demand and risks associated with infectious diseases must be carefully managed. Investors should closely monitor progress in implementing the plan.

2. Revision of the Dividend Plan and Its Impact

Eurasia Travel has revised the dividend plan it announced on July 31, 2025. The revision followed confirmation of finalized financial results and clarification of differences between projected and actual dividend amounts. Changes to dividend plans represent an important step toward greater transparency for shareholders and are noteworthy for investors.

Dividends are a key indicator of corporate health, and attention will focus on how the revision affects the company’s growth and stability. Specifically, investors will consider whether adjustments to the dividend amount contribute to future earnings improvement. Establishing a sustainable dividend policy is essential for strengthening shareholder returns and fostering long-term investor confidence.

Accordingly, the company must continue transparent communication and clearly explain the reasons for changes to its dividend policy in order to deepen trust with shareholders. This will serve as an important reference point for investors in making future capital allocation decisions.

3. Outlook for the Inbound Business

Eurasia Travel is strengthening efforts to attract inbound tourists. As part of initiatives targeting visitors to Japan, the company aims to increase arrivals from relatively untapped countries. Specifically, business development is being planned to attract travelers from regions such as Malta, Romania, and Uganda, where outreach has been limited. This strategy clearly seeks to expand market share.

In addition, the company is promoting “universal tourism” by offering barrier-free travel plans. This initiative has strong social significance and responds to diverse customer needs. As tourism’s social contribution gains importance, these efforts may create new business opportunities.

The inbound tourism sector also contributes to revitalizing Japan’s overall tourism market and is strongly supported by government policy. If successful, the company’s initiatives could generate significant economic impact. Investors should pay close attention to how the expansion of inbound operations contributes to overall profitability.

4. Potential for New Businesses

Eurasia Travel is demonstrating a commitment to establishing competitive advantages through new business development. Initiatives responding to digitalization and emerging demand are positioned as key drivers of longevity and growth. Strengthening digital marketing and customer relationship management will be essential in adapting to changes in the travel industry.

The development of new businesses is also expected to enhance brand recognition and corporate visibility. As the digital economy advances, online service offerings must exceed customer expectations. This evolution could improve cost efficiency and create a path toward stronger profitability.

For investors, the progress of new business initiatives is directly linked to future growth prospects and will be an important factor in investment decisions. Assessing the extent to which these initiatives impact overall corporate performance will be critical.

5. Organizational Strength and Human Resource Development

Ultimately, Eurasia Travel’s competitiveness depends on its people. Enhancing human capital through skill development and motivation initiatives is vital. In the travel industry, improving customer satisfaction and operational efficiency requires substantial investment in employee training.

As a service-oriented business where high-quality hospitality is essential, employee education is a key source of competitive advantage. Beyond fostering repeat customers, raising customer satisfaction contributes directly to corporate growth. Therefore, investment in human capital is closely linked to future expansion.

Moreover, as new technologies and services are introduced, the development of professional talent becomes increasingly urgent. Cultivating skilled professionals is a crucial factor in enhancing corporate value. Investors should evaluate the extent to which the company prioritizes human resource development when assessing its sustainable growth potential.

Taking all these elements into comprehensive consideration will be essential for informed investment decisions. Going forward, attention to Eurasia Travel’s strategic developments is likely to intensify.

Company Overview

1. Basic Information (Corporate Profile, Location, etc.)

Eurasia Travel Co., Ltd. was established in February 1986 and has built a solid presence in the travel industry. The company is headquartered in Hirakawacho, Chiyoda-ku, Tokyo. Its core business is the planning and sale of travel services, offering original themed tour programs titled “Eurasia Travel,” leveraging a network that spans more than 170 countries. The company places particular emphasis on serving middle-aged and senior customers, striving to enhance the overall quality of travel experiences.

Eurasia Travel organizes both package tours and customized travel plans. A defining feature is its small-group format, with a maximum of 19 participants accompanied by a professional tour escort. The company also provides specialized corporate travel services, including inspection tours, incentive trips, and educational travel. In addition, it acts as an agent for overseas travel insurance, prioritizing customer safety and security. Its commitment to high-quality service has been a key factor in earning customer trust.

The current Chairman and CEO is Toshio Inoue, under whose leadership the company has focused on improving customer satisfaction. With paid-in capital of approximately ¥312 million and 47 employees, the company maintains stable operations. Transparency and appropriate disclosure remain essential to securing investor confidence, positioning the company for future growth.

2. History and Key Milestones

Since its founding, Eurasia Travel’s history has been shaped by significant milestones. In 1986, the company obtained a general travel agency license, marking its first major achievement. In 1995, it was accredited as an authorized passenger sales agent by the International Air Transport Association (IATA), enabling the provision of a broader range of travel services.

In 2004, the company took an important step forward by listing on the JASDAQ Securities Exchange, strengthening its corporate standing. Later, in 2013, it transitioned to the JASDAQ (Standard) market of the Tokyo Stock Exchange, and following subsequent market restructuring, it is now listed on the Standard Market. Capital raised through listing has supported business expansion and the development of new services, enabling the company to adapt to evolving market conditions. These strategic developments have enhanced credibility and contributed to the expansion of its customer base.

Looking ahead, the company aims to develop overseas markets and cultivate new customer segments. Its responsiveness to industry changes and pursuit of new business models reflect a clear commitment to sustainable growth while meeting customer expectations.

3. Organizational Structure and Key Management

Eurasia Travel’s organization is supported by a strong leadership team. Chairman and CEO Toshio Inoue has formulated strategies aligned with changes in the travel industry, with a particular focus on products targeting senior customers. His experience and insight have significantly contributed to the company’s growth.

President and COO Noriko Yamada also plays a vital role. Drawing on her extensive operational experience, she focuses on improving efficiency and creating new value. Under her leadership, the company promotes human resource development and diverse working styles, fostering a corporate culture that emphasizes transparency.

The management team values internal talent and prioritizes teamwork. By aligning all employees under a shared vision, the company aims to deliver high service quality to customers, thereby strengthening trust. An organizational culture that highlights transparency and fairness is expected to support sustainable long-term growth.

4. Research & Development and Service Quality Enhancement

In the travel industry, research and development aimed at responding swiftly to changing customer needs is critically important. Eurasia Travel invests in cultivating staff with specialized knowledge, particularly focusing on improving the quality of tour escorts, who play a central role in delivering travel plans and enhancing customer satisfaction.

The company also develops unique travel products that go beyond simple sightseeing, offering opportunities to learn about culture and history. As a result, customers gain not just transportation and tourism, but meaningful educational and experiential value through travel.

In addition to employee training and skill development programs, the company emphasizes participatory information sharing to enhance the overall capabilities of the team. In a highly competitive travel industry, such efforts are key to sustaining service improvement and increasing repeat customers.

Going forward, strengthening its R&D framework based on customer needs and delivering creative, high-quality travel products will remain essential. In particular, advancing digitalization and exploring new marketing approaches and customer engagement strategies will be indispensable.

5. ESG and Sustainability Initiatives

In today’s business environment, where corporate sustainability is under increasing scrutiny, consideration of ESG (Environmental, Social, and Governance) factors has become ever more important. Eurasia Travel actively engages in environmental conservation and regional contribution through its travel operations, demonstrating a management approach oriented toward long-term growth.

Specifically, the company collaborates with local communities and incorporates region-specific culture and experiences into its travel products, helping to return tourism-related economic benefits to local areas. It also explores environmentally conscious travel plans and the development of sustainable destinations, fulfilling its corporate social responsibility and earning high regard from customers.

Internally, the company promotes diversity and fosters a supportive working environment. Efforts to increase the number of women in managerial positions form part of its diversity initiatives. These measures enrich corporate culture and create a more innovative environment, which is expected to enhance long-term performance.

ESG initiatives will remain essential to future growth and serve as an important evaluation criterion for investors. The company’s commitment in this area is expected to strengthen trust and contribute to establishing a sustainable business model.

By remaining sensitive to customer needs and market trends, Eurasia Travel aims to continue contributing to the development of the travel industry while meeting investor expectations. Its experienced management team, strong spirit of hospitality, and commitment to sustainable growth strategies form the foundation for future business expansion.

Shareholder Returns

1. Dividend Policy and History

Eurasia Travel Co., Ltd. (hereinafter “Eurasia Travel”) places shareholder returns at the core of its corporate strategy, aiming to enhance sustainable corporate value. In its recent Medium-Term Management Plan (covering the fiscal years ending September 2026 through September 2029), the company emphasizes shareholder returns and has established specific targets and reporting metrics. Within this framework, it implements a flexible dividend policy that takes into account sustainability and growth potential, alongside management indicators such as the dividend payout ratio and ROE (Return on Equity).

According to the announcement made on July 31, 2025, dividends are determined based on consolidated net income after tax, and the company has reaffirmed its policy of maintaining a DOE (Dividend on Equity) ratio of 10% or higher as a clear benchmark. Based on this standard, projected dividend amounts from fiscal 2026 onward have been calculated, with a target dividend of ¥50 per share for fiscal 2026 explicitly stated.

Looking back at its dividend history, even during the period from 2019 to 2023—when revenue fluctuations were significant—the company reviewed its dividend policy while maintaining a consistent commitment to meeting investor expectations. Notably, even when performance declined due to the impact of COVID-19, Eurasia Travel maintained dividend stability, thereby earning investor trust. The transition of dividends from 2019 to 2023 demonstrates a consistent stance toward shareholder returns.

For investors, dividend policy and its track record form the foundation of trust. Continued provision of stable and sustainable dividends will therefore remain essential. By strengthening its management base and consistently implementing shareholder return measures, Eurasia Travel seeks to build stronger relationships with its shareholders.

2. Share Buybacks and Their Impact

Share buybacks constitute an important component of Eurasia Travel’s shareholder return strategy and are utilized as a means of enhancing shareholder value within its capital policy. The primary objective of share buybacks is to reduce the number of shares outstanding by repurchasing shares from the market, thereby increasing earnings per share (EPS) and dividends per share. Through this initiative, existing shareholders benefit from an increase in share value.

Beyond functioning as short-term support for the share price, share buybacks are also positioned as a strategic use of capital from a long-term growth perspective. In addition to meeting dividend expectations, the effective utilization of surplus funds with an eye toward future growth opportunities is required. As part of leadership strategy, conducting share buybacks signals management’s confidence in the company, reinforcing trust with investors.

Eurasia Travel aims to respond to investor expectations by executing share buybacks at flexible and appropriate times to maximize shareholder value. Funds retained through buybacks are also expected to be allocated to other growth-supporting resources. Thus, share buybacks play an important role not only in promoting short-term gains but also in supporting mid- to long-term growth strategies.

Overall, share buybacks are regarded as an effective means for Eurasia Travel to enhance shareholder value while promoting sustainable corporate growth.

3. Total Payout Ratio and Financial Soundness

At Eurasia Travel, the total payout ratio is a key indicator of shareholder returns. This includes both dividends and share buybacks, representing the overall level of profits returned to shareholders. The total payout ratio serves as an appropriate metric in evaluating whether the company is utilizing shareholders’ equity efficiently and must remain consistent with its broader capital policy.

In the Medium-Term Management Plan, the total payout ratio is emphasized alongside ROE targets. For example, the company has set a target of returning more than 10% of consolidated shareholders’ equity as dividends in fiscal 2026. This reflects Eurasia Travel’s proactive approach to shareholder returns while maintaining financial soundness. As financial stability, dividend policy, and share buyback policy are interrelated, the company seeks to enhance overall capital efficiency.

For investors, a high total payout ratio provides reassurance. If a company consistently generates stable profits and demonstrates a commitment to returning them to shareholders, it creates a favorable investment environment. In this way, the total payout ratio serves as an important indicator of Eurasia Travel’s ability to sustain growth and contributes to building long-term shareholder relationships.

4. Medium- to Long-Term Policy and Sustainability

Eurasia Travel clearly articulates its commitment to shareholder returns in its medium- to long-term policies. In particular, the Medium-Term Management Plan outlines strategies for achieving stable and sustainable shareholder returns. Specifically, the company aims to align dividend plans with profit growth from 2026 through 2029. Establishing a long-term growth strategy with future shareholder returns in mind is a critical factor in enhancing corporate sustainability.

Drawing on experience from challenging business environments in the past, the company has emphasized retained earnings while maintaining flexibility in its dividend and share buyback policies to stabilize performance. This approach demonstrates a foundation for responding swiftly to changes in the external environment while fulfilling shareholder return commitments. Investors can evaluate the company’s pursuit of sustainable growth alongside its efforts to enhance shareholder value.

To establish a sustainable management foundation, communication with shareholders is indispensable. Eurasia Travel continues to enhance transparency through IR activities and strives to deepen trust with investors. By steadily implementing shareholder return measures over the medium to long term, the company must maintain a clear commitment to pursuing new growth opportunities and meeting investor expectations.

5. Approach to Investor Communication

Communication with investors is a crucial factor in ensuring the credibility and transparency of shareholder return policies. Eurasia Travel places importance on dialogue with institutional investors, conducting one-on-one meetings and providing sincere, detailed information. Through these efforts, the company enhances understanding of its vision and strategy while directly addressing investor concerns and questions.

Reducing information asymmetry requires timely and appropriate disclosure of financial conditions and business performance. By maintaining transparency, Eurasia Travel strengthens trust and clarifies the reasons investors may choose to hold its shares. This approach significantly influences how the company’s shareholder return framework is perceived as trust-based and reliable.

Strong investor relationships can also contribute to lowering the cost of capital. When sufficient information is provided, investors can more easily understand the company’s financial soundness and growth potential. As a result, the company’s shares are more likely to receive fair valuation, and future fundraising may proceed more smoothly.

Eurasia Travel is expected to continue building deep trust with shareholders by clearly presenting its shareholder return framework and maintaining forward-looking communication. A sincere attitude toward investors is anticipated to contribute to the long-term enhancement of shareholder value.

From this analysis, it is evident that Eurasia Travel has established a clear policy and track record regarding shareholder returns, along with well-developed measures for future growth. Its dividend policy, share buybacks, total payout ratio, and investor communication collectively support sustainable growth and the strengthening of trust-based relationships. In this regard, Eurasia Travel’s shareholder return policy is increasingly viewed as an attractive option for investors. Continued attention to its future initiatives and developments will be important.

Business Risks

1. Factors Causing Performance Fluctuations

The business performance of Eurasia Travel Co., Ltd. is affected by various factors, including domestic and international economic conditions, changes in consumer preferences and lifestyles, and trends among competitors. In particular, the overseas travel market depends heavily on exchange rates, political stability, and economic conditions, meaning that external events and unexpected incidents can have a significant impact on performance. For example, the outbreak of COVID-19 in 2020 dealt a severe blow to the travel industry, although a gradual recovery has been observed from 2022 to 2023.

Even amid signs of recovery, numerous elements continue to influence performance. As the company refines detailed customer targeting and develops new products, intense price competition with competitors is anticipated. Given that customers are highly price-sensitive, investors should closely monitor the risk of being drawn into price competition. Furthermore, customer needs in the travel industry are becoming increasingly diversified, with growing demand for services tailored to the so-called “mature segment.” If sales strategies focused on this segment succeed, positive effects on performance can be expected.

Geopolitical risks and exchange rate fluctuations must also be considered. Instability in destination countries may negatively affect business results. Therefore, adequate preparation and flexible responsiveness to such risk factors are required, and investors should maintain an informed understanding of the drivers of performance volatility. From the company’s perspective, it is essential to respond sensitively to external environmental changes and implement appropriate countermeasures.

2. Industry-Specific Risks

The travel industry faces unique risks, including political instability, natural disasters, and the spread of infectious diseases. Most notably, COVID-19 profoundly disrupted the global travel sector. To restore customer confidence, travel companies have been required to implement new safety measures and service improvements. These efforts are critical not only for ensuring customer safety but also for regulatory compliance.

In addition, advancements in the internet and new technologies have intensified competition within the industry. Consumers are increasingly opting for direct online bookings, and travel agencies must provide distinctive added value to maintain their intermediary role. Environmental concerns also represent a significant risk factor, as companies are expected to fulfill their corporate social responsibility (CSR) by developing sustainable products.

Changes in the labor market also warrant attention. As work style reforms progress, the travel industry must provide flexible and comfortable working environments. Industry-specific risks are diverse, and strategic countermeasures to address them are crucial for corporate survival and growth. Investors should understand risks common to the industry as a whole and carefully assess their potential impact.

3. Financial and Management Risks

Financial risks for Eurasia Travel are particularly related to liquidity, profitability, and governance structures. Due to the inherent seasonality of the travel industry—characterized by peak and off-peak periods—cash flow fluctuations can be significant. While high revenues are expected during peak seasons, liquidity pressures may arise during slower periods. Furthermore, as the company handles financial products such as travel insurance, it must prepare for unexpected accidents or incidents.

Exchange rate fluctuations are another profitability-related risk. In an industry with substantial international transactions, currency movements directly affect profit margins. Excessive exchange rate volatility could lead to sudden cost increases, necessitating appropriate risk hedging and pricing strategies in advance.

The importance of governance has also increased. Transparent management and proper information disclosure form the foundation of trust among investors and customers. As corporate social responsibility gains greater emphasis, the appropriate execution of CSR initiatives is essential to safeguarding brand image. Eurasia Travel must carefully assess financial risks and strengthen governance structures to achieve sustainable growth.

4. Risks Associated with Overseas Expansion

Eurasia Travel also faces risks in expanding within international travel markets. Political risks in destination countries, economic instability, and sudden policy changes can affect business operations. In addition, reliance on specific regions introduces concentration risk; deterioration in conditions within a particular country could directly impact performance.

As globalization progresses, diversification of demand makes it more challenging to accurately grasp customer needs. Companies must demonstrate flexibility in responding to cultural and preference differences across regions. At the same time, overseas expansion offers opportunities for market growth, making thorough market research and service offerings tailored to local needs essential for success. To strengthen competitiveness abroad, Eurasia Travel should emphasize collaboration with local partners and localized marketing strategies.

Risks related to overseas expansion thus represent critical challenges within the company’s growth strategy. Investors need to understand how the company structures its international strategy and addresses associated risks. They should also observe how sensitively the company responds to changes in the global environment and assess factors that may influence its competitiveness.

5. ESG-Related Risks

In recent years, awareness of Environmental, Social, and Governance (ESG) issues has risen significantly, and the travel industry is no exception. There is increasing scrutiny regarding the impact of travel products on the societies and environments of destination regions. Travel operators are therefore expected to promote sustainable tourism initiatives. In particular, carbon emissions and respect for local cultures have become critical issues, heightening the importance of CSR activities within the industry.

Customer perspectives are also evolving. Travelers are increasingly conscious of environmentally friendly choices and contributions to local economies, placing greater emphasis on companies’ ESG initiatives. Firms that fail to adequately address ESG concerns risk losing customer trust, which may also threaten brand strength.

ESG responsiveness in the travel industry extends beyond mere corporate social responsibility; it serves as a key indicator of sustainable growth. Investors should carefully monitor what ESG strategies a company adopts and how effectively these strategies are translated into concrete actions. Understanding that sustainability-focused management strategies underpin long-term competitiveness is essential.

In summary, the business risks faced by Eurasia Travel include performance fluctuation factors, industry-specific risks, financial and management risks, overseas expansion risks, and ESG-related risks. Proper understanding and management of each of these risks are essential. Investors must evaluate these risks comprehensively and make strategic decisions accordingly.