H2O Retailing announced its consolidated financial results for the fiscal year ending March 2013. Sales increased 3.9% year-on-year to ¥525.154 billion, operating profit increased 7.2% to ¥10.67 billion, and ordinary profit increased 10% to ¥11.338 billion. Net income rose significantly to ¥6.2 billion, up 586.6% from the previous fiscal year. This was due to the fact that the previous fiscal year's figure of ¥1.057 billion, which included costs related to the closure of Kobe Hankyu, was lower. The department store business performed strongly. Sales at the flagship Hankyu Umeda Main Store declined significantly until the second quarter, but sales have continued to grow steadily since the early opening of the second phase building in October of last year, resulting in a full-year increase of 18.7% year-on-year. Major branches, including Hankyu Men's Tokyo, Nishinomiya Hankyu, and Hakata Hankyu, also performed well overall, achieving higher sales than the previous year. Full-year department store sales increased 2.1% year-on-year. Supermarket, property management, and other businesses also saw sales growth compared to the previous fiscal year. While operating income declined in the property management and other businesses, increases in the department store and supermarket businesses resulted in increases in consolidated operating income, ordinary income, and net income. Next fiscal year, we plan to focus on building the best stores in the region, centered on the Hankyu Umeda Main Store, which will be fully operational after completing reconstruction work. Branch renovation plans are also progressing, with the aim of creating suburban department stores that meet the needs of local customers.

Forecasts for the next fiscal year are sales of 570 billion yen, up 8.5% from the previous fiscal year, operating profit of 15 billion yen, up 40.6% from the previous fiscal year, ordinary profit of 15.2 billion yen, up 34.1% from the previous fiscal year, and net profit of 8.6 billion yen, up 38.7% from the previous fiscal year.