JR East Group Management Vision “Move Up” 2027 Investor Meeting July 4, 2018 Table of Contents

1. Changes in the business environment P3

2. JR East Group’s strengths P5

3. Basic Policies of “Move Up” 2027 P6

4. “Move Up” 2027

(1) Overview P8

(2) Making cities more comfortable P12

(3) Making regional areas more affluent P21

(4) Developing businesses for the world P23

(5) Numerical targets (FY2023), etc. P24 Environmental Group “Move Up” 2027 “Move Up” 2027 1. Changes in the business environment: Decreasing population change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ After 2025, the population in Tokyo metropolitan area (Tokyo, Saitama, Chiba, Kanagawa) is expected to decrease gradually. ■ In Tohoku region (Aomori, Iwate, Miyagi, Akita, Yamagata, Fukushima), the population is expected to decrease by nearly 30% by 2040.

(Population in 2015 = 100) 100%

Tokyo metropolitan area

90% JR East service area

National

80% By 2040 Tohoku region

70% 2015 2020 2025 2030 2035 2040 (Year) Decrease by nearly 30% Source: IPSS (National Institute of Population and Social Security Research) Population Projections by Prefecture (2018)

3 Environmental Group “Move Up” 2027 “Move Up” 2027 1. Changes in the business environment: Decreasing need for railway transportation change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ After 2020, due to decreasing population, changes in the working style, development of internet society and practical application of autonomous driving technologies, the need for railway transportation is expected to decline. Since our railway business has large xed costs, we face a high risk of a drastic pro t loss.

Transition of passenger-km (East Japan area)

(100 mil. passenger-km) Tokyo 2020 Olympic and 1,500 Paralympic Games Decreasing population ▲4％ ▲9％ Non-commuter passes ▲（ 4 ＋ α ）％ 1,000 ▲（ 9 ＋ α ）％

Changes in the working styles Development of internet society Decreasing Practical application of population, etc. Commuter passes autonomous driving technologies 500

0 1987 1990 1995 2000 2005 2010 2016 2020 2025 2030 2040(FY)

Based on the 5th Tokyo metropolitan area person trip survey (Tokyo Toshiken Kotsu Keikaku Kyogikai, 2008), the no. of passenger-km is calculated by multiplying the expected population in 2030 and 2040 by the no. of trips/person by age group.

4 Environmental Group “Move Up” 2027 “Move Up” 2027 2. JR East Group’s strengths change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ While utilizing JR East Group’s strengths, we will continue to create new values through technological innovation and data integration for transportation, shopping and payment.

Business design Open innovation by utilizing knowledge and ideas from external sources

IT & Suica Lifestyle services Transportation services services Strengthening EC and increasing payment volumes Transportation services

Creating new values through Lifestyle technological innovation and Increasing added value and services data integration for transportation, expanding business areas shopping and payment

Undertaking qualitative reform IT & Suica and fully exerting our strengths services Trust of our customers and people in communities (= JR East Group’s foundation)

JR East Group’s services

5 Environmental Group “Move Up” 2027 “Move Up” 2027 3. Basic Policies of “Move Up” 2027 ① change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ Stories to create values: From the provision of services with railway infrastructure as our basis to the introduction of new values to society, focusing on the afuence of everyone in their daily lives.

30 years since the 10 years from now company’s establishment

Base Railway infrastructure, Base point technologies and knowledge point Affluent lives for all people

Shifting Creating new services by introducing Upgrading of services through technologies and knowledge from outside the the evolution of railways company, by utilizing a multilayered “real” network and stations as hubs for interaction

Rehabilitation and Offering new values to society revitalization of railways by staying ahead of changes in the business environment

①Drastic changes and diversi cation in social structures due to the decreasing birth ③Changes in our living environment due to technological innovations such rate and population and aging of the population as AI and IoT ②Changes and diversi cation in values related to what it means to work and be afuent ④Acceptance of new values through globalization of economy and society

6 Environmental Group “Move Up” 2027 “Move Up” 2027 3. Basic Policies of “Move Up” 2027 ② change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ There is an urgent need to qualitatively reform, revolutionize and develop transportation services mainly by railways. ■ Further allocate management resources to lifestyle services and IT & Suica businesses, developing them as our new growth engine. Consolidated operating revenues (Transportation:non-transportation) (6:4)

Increasing earning power by expanding businesses in the lifestyle Approx. 2.95 tril. yen services, IT & Suica services (7:3) Lifestyle services, IT & Suica Accelerating growth Lifestyle of the lifestyle services, services, IT & Suica Approx. 2.0 tril. yen IT & Suica businesses (9:1) Non-Transportation Concentrating business resources on Investment in the evolution of major businesses with the potential to grow railways (Creating new business (Lifestyle services, IT & Suica) opportunities for Ekinaka, Suica, etc.) Transportation Transportation Transportation services services business Making sales and Technological Strengthening transportation service innovation creating profit mainly through businesses by revolutionizing and New技 術 measures Improving 革 新 the railway business productivity developing the railway business

The company’s 30 years since the → FY2018 → 10 years from now Around 2027 establishment company’s establishment

7 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (1) Overview of “Move Up” 2027 change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ With people (“everyone”) as our base point, and with “Safety,” “People's daily lives,” and “Happiness of our employees and their families” as keywords, we will continue to create values of “Trust” and “Afuence” in cities, regional areas, and around the world.

Major efforts for the realization of the JR East Group Philosophy

Values Base point Focus points Making cities more Making regional Developing businesses to be created comfortable areas more affluent for the world

Revolutionizing transportation services Realizing seamless mobility Promoting tourism Establishing business Commercialization of new services Revitalization of regional industries models for overseas businesses Domestic People’s based on data analysis, etc. and overseas “Affluence” customers daily lives Making Suica a shared infrastructure Offering new lifestyles and creating cities

Advancement of our work “Everyone” Happiness of our employees Expanding the range of fields for career development and their families Employees Exercising creativity closer to our customers and their families Preventing global warming and diversifying energy sources “Trust” Safety Contribution to regional society Transfer of technologies and know-how People in ESG communities Service quality reform management Pursuing ultimate safety levels Management of business risk and thorough compliance

ESG stands for Environment, Social and Governance, important elements for the sustainable growth of a company.

8 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (1)【Focus point】 Safety change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ Safety is the top priority of JR East Group’s management. This awareness needs to be shared thoroughly with all of our employees. We take concrete measures to further improve our ultimate safety levels through the concerted efforts of all group companies. Completely eliminating accidents due to internal causes

● Proper maintenance, ● Strengthening practical safety education and Tangible management, strategic renewal Intangible training measure and strengthening of facilities measure ● Not only learning from failures, but also and rolling stock recognizing things that go well

● Understanding the true nature of Advancing safety capabilities of Evolution of ● Efforts to further advance our safety culture each task, voluntarily and thoroughly ● Efforts to detect new risks and advance searching for potential risks, and each one of our employees safety management rules and systems promptly responding to them ● Training personnel to respond to environmental change

Strategic and positive maintenance of safety equipment

● Properly responding to new risks by Realization of safer station actively utilizing new technologies Reducing risk of disasters platforms and level crossings and terrorist incidents Improving safety levels at station platforms ● Accelerating plans for further seismic reinforcement against large-scale earthquakes ● By the end of FY2033, the introduction of platform doors ● Improving prediction accuracy for abnormal weather and serious disasters at all stations (330 stations) for major conventional lines (wind gusts, heavy rain, etc.) in Tokyo metropolitan area ● Strengthening security against new threats such as terrorism, etc. ● Development of high-precision Image Processing Type Fallen Passenger Detecting System Improving safety levels at level crossings ● Warning road users (drivers) by using the Intelligent Transportation System ● Introduction of highly functional 3D level crossing obstacle detectors ● Installation of crossing gates or alarms to class 4 level crossings

9 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (1)【 Focus point】 People’s daily lives change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ By further expanding the range of coalitions with external networks by joint use of data and use of eld sites such as veri cation experiments, we will realize afuent lives for “everyone”.

Joint use of data Technologies, knowledge, JR East Group systems from external sources

External open data systems External services Public cloud and systems JR East Affluent lives for “everyone” Big Big data from JR East Group’s start-up data core systems Social Diversified and active mutual exchanges through our network Open

Range of information Mobile One-stop provision data Technology of various services

innovation Convenient and secure daily lives headquarters

(cloud platform) (cloud Seamless mobility New technologies infrastructure

Shared information IoT Energy Business platform Safe life infrastructures Research & Development Center of Mobility Sustainable development of JR East Group regional society Innovation Autonomous driving Consortium AI Technological development technologies at field sites Use of field sites such as verification experiments, etc. Range of technologies

10 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (1) Practicing ESG management change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ JR East Group will strive to solve social issues through our businesses, contribute to the development of regional society, and deepen the trust that people in communities and customers have in us, leading to the sustainable growth of JR East Group.

Realizing sustainable growth of JR East Group Realization of low-carbon society (decarbonization) Making cities more comfortable Energy consumption by railway business Making regional areas more affluent FY2021: 6.2% reduction (from FY2014 level) Developing businesses for the world FY2031: 25% reduction (from FY2014 level) Environment Social ESG management ・ Prevention of global warming ・ Service quality reform ・ Diversi cation of energy ・ Responding to social issues (childcare support, responding to a variety of customers, fostering of global-minded railway-related personnel) ・ Supporting cultural activities

Flexible services Diverse Governance customers Contribution to ・ Ultimate safety levels Compensation development Regional ・ Risk management society ・ Compliance Trust Stable return JR East Shareholders and investors Group Investment

SUSTAINABLE DEVELOPMENT GOALS: 17 Sustainable Development Goals the world agreed upon for 2030

11 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (2)【 Making cities more comfortable】 Targets change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ By delivering seamless transportation and various services as part of our “one-stop” offering, we will provide an environment where customers can choose the optimal transportation, purchasing and payment services for their daily lives 24 hours a day.

Dropping kids at nurseries at Morning neighboring stations One-stop provision Changing routes at times of transportation Daytime disruption and utilizing hire services By using applications, making complete of various services arrangements for the optimal route for the following day and making payment Station Seamless mobility Station Gathering information around the Placing an order via the internet destination and making a reservation and making payment. Suica as a for lunch Neighboring Neighboring (The result is automatically reflected area shared infrastructure in household account books.) area

Services to Services that heighten the 24 make customers feel value of glad about visiting the time usage neighboring area Home Destination 18 6 Creating Offering new lifestyles Neighboring destinations Neighboring Creating cities area area Services that Services that make make customers feel Making stations people feel glad about glad about living in the 12 into more attractive working in the neighboring area Making places that are neighboring area transportation more fun Station more fun and Station comfortable Qualitative reform of Picking up kids from nurseries transportation services Picking up products purchased on-line Working in spare time in from coin lockers at stations Neighboring Neighboring shared offices at stations area area Late Night afternoon JR East Group’s Mobility linkage platform Payment platform business platform

12 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (2)【 Making cities more comfortable】 One-stop provision of various services change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ By widely connecting various services by JRE POINT, we will expand and accelerate the introduction of new services. At the same time, by carefully responding to individual needs and providing one-stop convenience for a variety of services, we help to create a stress-free living environment for customers. Services to respond to individual needs One-stop provision of services Stress-free life

JR East Group Mobility Purchase Payment information information information Services of other Introduction of new services based on analysis of big data, etc. railway companies Products and services of nancial and automobile Usage/provision manufacturers, etc. institutions and payment service Eki-net providers, etc. Rent JRE CARD Provision/usage

Search Arrange Pay Mobility linkage platform JRE POINT Provision/usage members Products and Station buildings Products and services services of Usage/provision and Ekinaka of retail and real estate e-commerce companies, etc. JRE MALL JR East Group’s business platform

13 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (2)【 Making cities more comfortable】 Realization of seamless mobility change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ JR East will undertake initiatives for the realization of seamless mobility by utilizing its mobility linkage platform, providing all-in-one-services that offer the necessary transportation information as well as purchasing and payment options to customers, enabling stress-free travel and a reduction in total travel time. Seamless mobility Reduction in total travel time Stress-free travel

Railway network Hotel Arrangement check-in, of guides, Departure Home Station point Station etc. porters, etc.

Conventional lines Station Station High-speed rail Secondary and Taxi, car sharing, walking, tertiary transportation etc. Conventional lines Destination

On-board BRT, buses, etc.

User Transportation service providers Easy-to-use application Search Arrange Pay Usage Coalition Automobile manufacturers, etc.

Mobility linkage platform Payment service providers, etc.

14 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (2)【Making cities more comfortable】Qualitative reform of transportation services change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ With the improvement of the safety and reliability of transportation as our foundation, we will qualitatively reform our transportation services by creating destinations for our customers, making stations more fun and attractive, and making transportation more fun, comfortable and convenient.

Tsuchiura Creating destinations Making stations more fun and attractive Focusing on destinations Creating stations as landmarks in each region to fulfill (creating vibrant travel destinations, 川越 Reducing the risk of disaster diverse functions and heighten opportunities for interactions strengthening promotions, etc.) as Ōmiya and terrorism Yoshikawaminami Detailed guidance我孫子 Stations as places Minami- a whole group Urawa Megaloop where people gather Solving chronic delays in operations Musashi-Urawa AkabaneDrastically easing transportation congestion Kita-Senju Musashi-Itsukaichi Haijima Ikebukuro Yamanote Line Tachikawa Nishi-Kokubunji Mitaka Ueno Kinshichō Nishi-Funabashi Line connecting Shinjuku Sakura east and west Introduction of more Tōkyō Realization of driver-less operations Hachicomfortableōji trains Fuchūhommachi Hamamatsuchō Minami-Funabashi Shinagawa Chiba Shin-Kiba Ōsaki

Musashi-Kosugi Soga Hashimoto Airport access line Safer station platforms and level crossings Haneda Airport Terminal 2 Kawasaki Extending through operations Direct Sotetsu-JR line Yokohama Ebina

Making transportation more fun, comfortable and convenient

茅ヶ崎 Line connecting Offering逗子 travel space and a transportation network north and south with added value for the needs of each customer

Increasing safety and reliability of transportation

15 Environmental Group “Move Up” 2027 “Move Up” 2027 【Topics】Smart trains change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ Introduce Smart trains by qualitatively reforming railways from various perspectives including operations and services.

Services Smart trains ●Realization of next-generation ticketing systems and touch-less and gate-less ticketing ●Realization of next-generation Shinkansen (360 km/h) Environment ●Development of fuel-cell railcars using hydrogen as energy

Train operations ●Realization of driver-less operations Safety ●Speedy recovery ●Improving security and safety by of train service utilizing sensor technologies for delays by ICT platforms and level crossings at times of transportation disorder

Maintenance ●Introduction of robots for maintenance ●Utilization of drones to understand situations at disaster and accident sites ●Realization of smart maintenance to respond to the condition of facilities and rolling stock

16 Environmental Group “Move Up” 2027 “Move Up” 2027 【Topics】 Promotion of Haneda Airport Access Line concept change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ Major effects ・Realization of seamless mobility by offering direct access from multiple directions West Yamanote route Shimbashi East Yamanote route (reduction in travel time and elimination of transfers) ・Responding to a further increase in transportation needs (between each section of the Tokyo metropolitan area and the airport) by reinforcing transportation capacity (by approx. Saikyō Line Yamanote Line Tōkyō Teleport 1.8 times the current level) and increasing redundancy to offer multiple options Oshio Shinagawa Line Rinkai Line

Kawagoewagoee Coastal area route Ōmiya Ōsaki Komagawa To Joban To Utsunomiya and Takasaki Abiko Musashi-Urawa UUraUrawa Shim-Matsudo Airport access line

AkAAkabane Narita Tōkyō Freight Terminal Musashi- Kita-SenjuK Itsukaichi To Shinjuku and IkebukuroIkebukurIkebukubu uroo SSakura Yokosuka Line Tachikawak a Kichijōji UenoU Haijima ōkyō Monorail Shinjukukuk T KinshichōK To Boso Peninsula Hachiōji Fuchūhommachi TTookyōy Shin-KibaShS baa Minami-MinamM naminammi- Hamamatsuchōamatsuchōamatattssuchhōō FunabashiF ōkaidō Line Chiba T New station at Keikyu Line Ōsakisakisakiki ShinagawaShiShShih n aw Kamata eight Line Haneda Airport Keikyū Kamata Hashimoto Soga Haneda Airport Musashi-Kosugi HanedaH Airport Terminal 2 Terminal 2 ōkaidō Fr Legends T KKawasaki Haneda Airport Existing lines (JR East) Domestic Terminal Existing lines Yokohama Haneda Airport (other companies) Terminal 1 New lines Haneda Airport Haneda Airport International Line increase International Terminal Terminal Station

Between Shinjuku and Haneda Airport Time required No. of transfer Between Tokyo and Haneda Airport Time required No. of transfer Between Shin-Kiba and Haneda Airport Time required No. of transfer Via Tokyo Monorail Approx. 48 min. 1 (Hamamatsu-cho) Via Tokyo Monorail Approx. 28 min. 1 (Hamamatsu-cho) Via Tokyo Monorail Approx. 41 min. 1 (Tennozu Isle) Via Keikyu Approx. 43 min. 1 (Shinagawa) Via Keikyu Approx. 33 min. 1 (Shinagawa)

Time required No. of transfer Time required No. of transfer Time required No. of transfer West Yamanote route Approx. 23 min. N/A East Yamanote route Approx. 18 min. N/A Coastal area route Approx. 20 min. N/A

17 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (2)【 Making cities more comfortable】 Offering new lifestyles and creating cities change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ Offering new lifestyles and creating cities that people feel are good to live in, good to work in, and good to visit. ■ By further improving services, we will enhance convenience and comfort levels for citizens, workers, and travelers, etc.

Real-time display Services to improve the time On-line reservation and Unmanned stores of congestion value of our daily lives payment systems for stores

People in communities Workers

(family, elderly, etc.)

One-stop services Services for Travelers Home-delivery Utilization of members pick-up services spare time Clinics, nurseries, after-school Watch over services at stations childcare, libraries, municipal Workspace, employment for kids, etc. Proxy services for services, home-delivery, etc. assistance, etc. shopping, parcel at Ekinaka (at stations) which are directly connected reception, etc. to stations

Residential services

Further improving Strengthening coalitions safety levels at stations between facilities and services Strengthening interaction Baggage service, AR guidance, Parcel delivery between generations and automatic detection of people services, etc. reinforcing community in need of guidance

18 Environmental Group “Move Up” 2027 “Move Up” 2027 【Topics】 GLOBAL GATEWAY SHINAGAWA change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ Creating a new international hub where leading-edge companies and people from around the world come together, and new businesses and cultures are created through diverse interaction.

No. 4 district No. 3 district No. 2 district No. 1 district

South tower North tower

Restaurants, etc. To Tamachi Sengakuji Offices Station Residences Station Hotel Offices Offices Cultural facilities Educational facilities To Shinagawa Conference and Park Station Pedestrian Commercial facilities convention facilities deck of the new station 商業Business creation functions Commercial facilities Commercial商業 facilities Shinagawa new station (provisional name)

Urban development of global standards Showcasing JR East’s new challenges The latest urban infrastructures, functions, and environments attracting attention from the world Utilizing JR East’s resources and making various proposals to cope with social change

H2 Hydrogen station

Vibrant plaza and pedestrian network Unique and quality space Efforts to realize a hydrogen society Transfer between railways and secondary transportation modes at the new station

Connections to neighboring communities

MICE and of ces Commercial and cultural facilities Hotels and residences Support for start-ups Laboratory functions to try new ideas

19 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (2)【 Making cities more comfortable】 Making Suica a shared infrastructure change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ Making Suica a shared infrastructure by linking Suica with various other payment methods and applications so that Suica can be used in a full range of activities in our daily lives. Fintech connection Verification services Easy-to-use Suica values become available Suica as a common key in a variety of advanced payment services for all services ●New payment methods ●Various nancial services ●Digital tickets ●Money transfers between individuals ●Room keys for hotels, etc. ●Various mobile applications New lifestyles

Provision of substantial Ticketless services information related to transportation A coalition with various Realization of smooth railway usage transportation modes Customers can easily check a variety Suica can be used for of travel and transportation infromation an optimal combination of ●Watch over services various transportation modes ●Provision of train operation

New mobility Rent information, etc.

Search Arrange Pay Mobility linkage platform

20 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (3)【 Making regional areas more afuent】 Targets change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ By promoting tourism, revitalizing communities, reforming transportation services, and undertaking town planning projects, we will achieve compact cities and networking. Network to respond to characteristics of each region Active interaction both between regions and inside regions Affluent living 【Reformation of transportation services】 【Promoting tourism】 Switching to transportation modes depending on characteristics of each region Finding new regional tourism resources and Development of sightseeing promoting the attractiveness of each region routes covering large areas Realization of seamless Coalitions with and safe mobility other networks Responding to inbound travel Operating Joyful Trains demand from overseas People

Regional areas Cities Making Suica a shared infrastructure Station Toward compact cities and networking

Products Promoting the sextic industrialization of Development of quality lifestyle Participation in revitalization agriculture, forestry and fisheries including Expanding sales channels and distributing services near stations of central urban districts processing, logistics and marketing information on regional specialties Supporting regional As hubs (community, energy, Strengthening gateway Promoting renewable energy disaster prevention) functions of stations cultural projects 【Town planning around stations】 【Revitalization of regions】

21 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (3)【Making regional areas more afuent】 Promoting inbound tourism strategies change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ With the Tokyo metropolitan area as the base point, we aim to revitalize regional cities by expanding inbound travel demand and encouraging tourists to visit regional cities.

Inbound travel FY2019 FY2023 FY2028 revenue forecast Railway Business 27 bil. yen 38 bil. yen 47 bil. yen (plan) Lifestyle Business 15 bil. yen 22 bil. yen 27 bil. yen

Strengthening promotions mainly for private travelers from Asia From Tokyo metropolitan area to Tohoku and Shinetsu regions

Strengthening and Expanding hubs Improving stress-free Creating opportunities to expanding digital marketing and direct and networks environment to welcome guests experience customs and cultures sales via the internet

Free Wi-Fi in Shinkansen, etc. Increasing experience-type products VR (virtual reality) AR (augmented reality) IoT and AI Regional Promotion Marketing materials

QR codes Experience- Finding new Big data type products raw materials applications, Sales Responding to various payment services internet GPS

IC Destination Campaign and inbound Changes in inbound tourism demands Reaching out to those not yet interested in visiting Japan Europe, US, Australia Southeast Asia Securing rst-time visitors Providing easy-to-use Suica services Providing various accommodation services Accommodation Eating Tokyo 2020 Olympic and Establishing repeat visitors Paralympic Games East Asia Staying at Local No. of overseas old folk houses/ travelers to Japan restaurants FY2018 (result) Target in 2020 Target in 2030 farmhouses 28.69 mil. persons 40 mil. persons 60 mil. persons

22 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (4)【Developing businesses for the world】Targets change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ By packaging our transportation services, lifestyle services, etc. to match the needs of each country we will offer more afuent lifestyles for global markets.

Development of Safety and reliability of transportation services business models More affluent lifestyles mainly in Asia

Long-term, Ongoing projects sustainable management of in Europe overseas businesses Establishment of models for overseas businesses

Utilization of overseas Development of personnel JR East Group technologies and knowledge and improvement of business model (image) for domestic markets technological capabilities

Synergetic New line projects effects Lifestyle services, etc. in Southeast Asia Transportation services mainly by railway at Ekinaka and Urban dwellers around stations Development of new projects in Asian Current Provision of countries, etc. safety and reliability Maximization of of transportation additional values The opening of Lumine (Singapore) and Atré (Taiwan) Operation of West Midlands Railway in the UK (FY2018 to FY2027) Utilization of ICT Supporting opening of India High-Speed Railway (FY2017 to FY2024) and Suica Transportation and Providing rolling stock and maintenance for the Purple Line in Bangkok, Thailand (FY2017 to FY2026) purchase support

FY2019 FY2028

23 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (5) Numerical targets (FY2023) change strengths Basic Policies Overview Urban cities Regional areas World Targets

Financing Money usage

【Consolidated operating cash flow】 Corporate bonds, Priority budget 【Priority budget allocation ●With safety and reliability of transportation loans, etc. allocation (investment for innovation, etc.)】 400 bil. yen as our foundation, we will increase operating ●Promoting investment for cash flow by offering new services to technological innovation (5 years) respond to needs of customers. Growth Investing the investment We aim to expand the scale of our operating ● 1.44 tril. yen revenues. generated cash 【Growth investment】 ●Based on new criteria for the judgement Consolidated Total capital of investments, we actively invest for accumulated operating cash flow expenditures future growth. 3.72 tril. yen 3.75 tril. yen

【Investment needed for the continuous Investment By utilizing assets operation of business】 efficiently, needed for the continuous ●We flexibly invest at or close to an maximizing profits operation of amount equal to consolidated business depreciation expense. 1.91 tril. yen

Shareholder Deposit balance, etc. returns

《Management index targets》 〇Consolidated accumulated operating cash flow 〇Consolidated ROA (operating income rate for total assets = operating income ÷ total assets) 《Mid- to long-term mindset》 〇The balance of consolidated interest-bearing debt should correspond to the consolidated operating revenue and profit. 〇Total return ratio is targeted to be 40%. Dividend payout ratio is targeted to be 30%.

24 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (5) Numerical targets (FY2023), etc. change strengths Basic Policies Overview Urban cities Regional areas World Targets

■ To achieve our reforms in the coming 10 years, we will set numerical targets for the rst 5 years (FY2023), i.e. for the rst half of the period.

Consolidated operating revenue 32,950 Consolidated operating income Consolidated accumulated operating Consolidated ROA (100 mil. yen) 5,200 cash flow 6.0 6.0 29,940 6,000 (100 mil. yen) 950 (100 mil. yen) （%） 4,820 Accumulated 6.0 30,000 10,000 890 4,400 260 total 37,200 3,520 230 6,600 1,090 5,210 4,000 820 4.0 20,000 400 560

5,000

21,000 2,000 10,000 20,320 3,380 3,300 2.0

0 0 0 0.0 FY2019 (plan) FY2023 (target) FY2019 (plan) FY2023 (target) FY2019 FY2023 FY2018 FY2023 (result) (target) ■Transportation ■Retail & Services ■Transportation ■Retail & Services ■Real Estate & Hotels ■Others ■Real Estate & Hotels ■Others

Values to create Focus points Numerical targets for specific actions (FY2023)

○Mobility Linkage Platform: ○No. of shared offices: 30 locations in total People’s Service usage: 30 mil. transactions/month ○No. of JRE MALL members: 700,000 persons Affluence daily lives ○Ticketless service usage rate for JR East Shinkansen: 50% ○No. of JRE POINT members: 16 mil. persons ○No. of childcare support facilities: 150 locations in total ○E-money usage such as Suica: 300 mil. transactions/month

○Accidents due to internal causes: 0 ○Transportation disruptions due to internal causes (from FY2018 level) ○Serious incidents: 0 Conventional lines within 100-km range of Tokyo: 50% reduction JR East Shinkansen: 75% reduction Trust Safety ○Railway accidents: 20% reduction (from FY2018 level) Of which accidents on platforms involving personal injuries: ○Total delay time for conventional lines in Tokyo metropolitan area: 30% reduction (from FY2018 level) 20% reduction (from FY2018 level)

25 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (5) Numerical targets (Capital expenditures) change strengths Basic Policies Overview Urban cities Regional areas World Targets Breakdown of capital expenditures Breakdown of capital expenditures FY2019 to FY2023 Total capital Priority budget allocation expenditures: (Investment in innovation, etc.) 3.75 tril. yen ・Smart maintenance (CBM, etc.) ・Next-generation ticketing system ・Revolution in transportation duties Priority budget in the Tokyo metropolitan area allocation: ・Training simulators for train crews, etc. Smart maintenance (CBM, etc.) Next-generation ticketing system 400 bil. yen Growth investment ・Shinagawa development project Growth ・Introduction of first-class (green) cars investment: to Chuo line rapid service, etc. 1.44 tril. yen ・Oimachi development project (provisional name) ・Yokohama station west exit development building (provisional name) ・Kawasaki station west exit development project ・Takeshiba waterfront development project Shinagawa new station Introduction of first-class (green) cars Investment etc. (provisional name) to Chuo line rapid service, etc. needed for the continuous Investment needed for the continuous operation of operation of business business: ・Countermeasures for large-scale earthquakes 1.91 tril. yen ・Installation of platform doors ・Production of rolling stock for conventional (of which, lines (Series E235, etc.) 1.2 tril. yen is for ・Production of rolling stock for Shinkansen safety measures) (Series E5 and E7, etc.) ・Renovation of stations (Shibuya station, etc.) Countermeasures for large-scale earthquakes Installation of platform doors

26 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (5) Numerical targets (Shareholder returns) change strengths Basic Policies Overview Urban cities Regional areas World Targets Shareholder returns

◆In the mid- to long-term, the total return ratio is targeted to be 40%. The dividend payout ratio is targeted to be 30%. ◆We will stably increase a dividend and flexibly buy back our shares consistent with trends in our business results.

(100 mil. yen) Transition of shareholder returns 1,200 60％ Mid- to long-term targets 1,000 50％ Total return ratio: 40.0％ 800 40％ Dividend 31.8％ 32.3％ 33.0％ 32.6％ 32.9％* payout ratio: 29.3％ 30.0％ 600 30％ 27.0％ 26.1％ 23.7％ 20.8％ 400 18.2％ 18.7％ 20％

200 10％

0 0％ 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3

Total dividends Share buybacks Total return ratio Dividend payout ratio

*Total return ratio for FY2018: In the case that the total 41 bil. yen of our own shares is acquired.

27 Environmental Group “Move Up” 2027 “Move Up” 2027 4. (5) Numerical targets (Interest-bearing debt) change strengths Basic Policies Overview Urban cities Regional areas World Targets Consolidated interest-bearing debt

◆Considering ability to repay debt, the balance of consolidated interest-bearing debt should correspond to the consolidated operating revenue and profit. ◆Net interest-bearing debt / EBITDA(*) should be about 3.5 times.

(100 mil. yen) Forecast of net interest-bearing debt / EBITDA (times) 10,000 5.0

8,492 8,473 8,304 8,000 4.0

3.5 3.5 3.4 6,000 Net interest-bearing debt / EBITDA should be about 3.5 times. 3.0 (Net interest-bearing debt is expected to be between 3 tril. and 3.5 tril. yen.) 4,000 2.0

2,000 1.0

0 0.0 2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3

EBITDA (left axis) Net interest-bearing debt / EBITDA (right axis) (*) Net interest-bearing debt = Balance of consolidated interest-bearing debt – Balance of consolidated cash and cash equivalents EBITDA = Consolidated operating income + Consolidated depreciation expense

28 Forward-Looking Statements Statements contained in this report with respect to JR East Group’s plans, strategies and beliefs that are not historical facts are forward-looking statements about the future performance of JR East Group, which are based on management’s assumptions and beliefs in light of the information currently available to it. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause JR East Group’s actual results, performance or achievements to differ materially from the expectations expressed herein. These factors include, without limitation, (i) JR East Group’s ability to successfully maintain or increase current passenger levels on railway services, (ii) JR East Group’s ability to improve the pro tability of its railway and other operations, (iii) JR East Group’s ability to expand its non-transportation operations, and (iv) general changes in economic conditions and laws, regulations and government policies in Japan.