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Presentation [PDF/3.58MB] FY2021.3 Financial Results April 30, 2021 East Japan Railway Company Contents Ⅰ FY2022.3 Business Management in Anticipation of a Post-COVID-19 Society Changes in the business environment and our management 4 Cost Reduction Results and Plan 33 Management Policies amid Speed up “Move up” 5 Transportation - Results and Plan 34 Initiatives since Announcing Speed up “Move up” 7 Retail & Services - Results and Plan 35 Policies for FY2022.3 9 Real Estate & Hotels - Results and Plan 36 Improve Profitability (Rebuild Growth and Innovation Strategies) 10 Hotel Operations - Overview 37 Structural Reform (Drastic Strengthening of Management Structure) 15 Main Projects and policies 38 Implement ESG Management 20 Others- Results and Plan 39 Summary of Non-operating Income / Expenses and Numerical targets for specific actions (FY2026) and FY2021 results 22 40 Extraordinary Gains / Losses (consolidated) FY2022.3 Plan (non-consolidated / consolidated) 23 Summary of Cash Flows (consolidated) 41 Plan for the use of cash in FY2022.3 24 Change in Capital Expenditures (consolidated) 42 Ⅱ FY2021.3 Financial Results and FY2022.3 Plan Change in Interest-bearing Debt Balance (consolidated) 43 FY2021.3 Financial Results 26 Fund-Raising 44 and FY2022.3 Plan (non-consolidated / consolidated) Passenger Revenues - FY2021.3 Results 27 Ⅲ Reference Materials Passenger Revenues - FY2021.3 Results and FY2022.3 Outlook 28 >Numerical Targets of “Move Up” 2027 (FY2026) >Financing and Money usage Passenger Revenues - FY2022.3 Plan 29 >Capital Expenditures Plan (consolidated) >Debt Management Policy Operating Expenses (non-consolidated) – FY2021.3 Results 30 >FY2022.3 Traffic Volume and Passenger Revenues - Plan >Suica Cost Reduction Plan (non-consolidated) 31 >Mobile Suica / eki-net / JRE POINT >Additional Information for bond Investors Operating Expenses (non-consolidated) - FY2022.3 Plan 32 Ⅰ FY2022.3 Business Management in Anticipation of a Post-COVID-19 Society Changes in the business environment and our management From the provision of services with railway infrastructures as our basis to the introduction of new values to society, focusing on the affluence of everyone in the daily lives. Realize the JR East Group Management Vision “Move Up” 2027 by raising the speed and level of forward-looking initiatives Practice Rebuild growth and innovation strategies ESG manage Strengthen management efficiency ment fundamentally Speed up “Move up” 2027(Released at Sep.2020) Changes in the business environment because of COVID-19 New Numerical target of “Move up”2027(FY2026) ( Released at Jan.2021) (Time) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 4 Management Policies amid Speed up “Move up” (1) Raising the level and speed of forward-looking initiatives to realize “Move Up” 2027 ■ Proposing new lifestyles and taking on the challenge of new fields by combining JR East’s strengths in real networks and digital technologies ■ Tackling structural reforms while working to restore the profitability of transportation services ■ Accelerating the growth of life-style services and IT & Suica services to achieve a 6:4 ratio between the operating revenue of the Transportation segment and that of other segments by FY2026.3 while aiming to achieve a 5:5 ratio as soon as possible Transportation service IT & Suica service Metropolitan area network Ticketless, cashless Interurban network Share office service Data marketing Travel, Tourism Mobile business Online shop Logistics service ■Urban development Real estate business Life-style service Create new values through Group’s strength 5 Management Policies amid Speed up “Move up” (2) Rebuild growth and innovation strategies Strengthen management efficiency fundamentally Planning cost Support work-style reform Improve Reduce fixed costs even Propose reductions of Cash Flows further, revise investment new Create real × digital lifestyles (strengthen e-commerce) approximately ¥150.0 needed for the continuous lifestyle billion (FY2021) operation of business ideas Attractive town development Provide reassurance and cleanliness as well as transportation and trips avoiding “Cs” Establish efficient sales systems (ticketless, cashless) New transportation and trips enabled by MaaS and digital technologies Increase driver-only operation, consider autonomous driving Expand businesses catering to contactless needs Enhance productivity Integrate Group strategies for customers Accelerate smart maintenance, shorten construction lead times through new construction methods Logistics services that utilize trains Reform duty execution systems Business alliances with start-up companies, etc. (regional Take on Revise fundamental components of operations agriculture, utilization of unmanned railway stations, etc.) Provide challenges Services (transportation timetables, etc.) in new fields Utilize JR-East Group Reflecting Assets (Share 5G antenna infrastructure, etc.) Streamline facilities, Changes Rigorously analyze railcar replacement cycles Utilize robots in Usage Seek even greater business profitability Development overseas businesses in large-scale projects Practice ESG management Optimize Reorganize the Group (efficient operational management) Zero-Carbon Challenge 2050 Group management Contribute to 短期regional(2020 revitalization・2021) 6 Initiatives since Announcing Speed up “Move up” (1) Revised Timetables for Last-Train and First- Introduced Automatic Train Operation (ATO) Devices and Train Services (Increased Line Segments with) Driver-Only Services, etc. Revised timetables for last- train services 18 line segments Revised timetables for first-train services 5 line segments Introduced and began Conducted test Increased driver-only Increased the speed of upgrading and maintenance to using ATO devices runs of a large services enhance services and to implement work-style reform for on the Joban Line autonomous driving Uchibo Line, Sotobo Line, railway construction work and catered to changes in (local services) bus specifically Kashima Line, Oga Line, customers’ behavior that have resulted from COVID-19 designed for BRT Mito Line New JRE POINT Awards Began Introduction of Regional 2in1 Collaboration IC Cards Launched new JRE POINT awards to suit increasingly diverse commuting styles Unique regional services, such as bus commuter passes and discounts Promoting introduction Suica services, such as tickets and electronic outside of the Suica usage money that can be used in the Suica area, Registered users area Off-Peak Point etc. Approx.340,000 ■Future roadmap (plan) Service on April 25 Introduction in From spring 2023 Spring 2022 March 2021 Spring 2023 onward Users in March Akita Prefecture, Yamagata Tochigi (Reference) Tochigi Prefecture Prefecture, Gunma Prefecture Prefecture Expansion of railway area (additional totra Aomori Prefecture (Aomori area, Repeater Point transportation Approx. Hachinohe area) Suica to be usable at 44 railway operators) Service Iwate Prefecture Iwate Prefecture (additional stations in Aomori Prefecture, 390,000 transportation operators) Iwate Prefecture, and Akita Iwate Green Pass Prefecture 7 Initiatives since Announcing Speed up “Move up” (2) Expanded STATION WORK Expanded JRE MALL FY2026.3 target JRE MALL transactions of ■Participation in Hometown Tax Payment ¥130.0 billion FY2026.3 target Enabled donations Establish shared offices at through JRE POINT OMO…Online Merges with Offline 1,200 locations ■Taking on the in total challenge of OMO ■Established a network of 134 Planning to open locations nationwide from Hokkaido a new-format, to Okinawa as of the end of FY2021.3 OMO-compatible BELLE MAISON store ■Established Japan’s first shared office in Tokyo Station on a platform this spring Further Rollout of Logistics Services That Utilize Trains Future direction ■Extend logistics services developed for Ekinaka sales (inside railway stations) to Deepen cooperation areas outside railway stations ■ with other companies In cooperation with JR East Logistics and JR Hokkaido, began regular logistics Aim to expand services services using the Hokkaido and Tohoku Shinkansen on April 15 Largest transportation volumes currently JR EAST LOGISTICS JR-Hokkaido JR-East Delivery ( ) destination Goods Volume Frequency of Shipper depositary (depositary) transported transportation Shin-Hakodate-Hokuto Station Tokyo Station Tokyo area Restaurants, etc. 60 Fish Approx. 250 days/year cases (days market open) Utilization of vacant space in Transportation Box Carry in 4 cases (approx. Every day operations rooms Delivery, partners lunches 80 meals) sale 8 Policies for FY2022.3 Return to Profitability in FY2022.3 (Non- Consolidated and Consolidated) Improve Profitability (Rebuild Growth and Innovation Strategies) Implement Structural Reform (Drastic Strengthening of Management Structure) Implement ESG Management Make Safety the Top Priority 9 Improve Profitability (Rebuild Growth and Innovation Strategies) (1) “Beyond Stations” Concept ■Go beyond existing roles as transportation hubs where people pass through and gather and transform railway stations into lifestyle platforms that connect ■Respect the value that railway stations have created as real transportation hubs, and while utilizing this strength, realize “affluent lifestyles” that only we can provide Further strengthening of Development of shared offices digital points of contact 1,200 locations in total with customers Use of Suica and other public transportation electronic money 500 million transactions per Subscription services month Introduce pickup points to JRE Station
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