East Japan Railway Company (9020) investor relations material

Executive summary

• Operating revenues for the first quarter reached a record high of ¥772.7 billion, marking the sixth consecutive period of growth, driven by increased passenger revenues and real estate leases.

• Operating income rose by 9.4% year-over-year to ¥125.5 billion, and ordinary income increased to ¥106.8 billion.

• Profit attributable to owners of parent declined 13.6% year-over-year to ¥68.0 billion, mainly due to lower gains on sales of investment securities.

• All business segments reported revenue growth, with notable contributions from transportation, retail & services, real estate & hotels, and others.

Financial highlights

• Operating revenues: ¥772.7 billion (+8.0% YoY); Operating income: ¥125.5 billion (+9.4% YoY); Ordinary income: ¥106.8 billion (+8.0% YoY).

• Profit attributable to owners of parent: ¥68.0 billion (-13.6% YoY); Comprehensive income: ¥58.0 billion (-28.9% YoY).

• EBITDA improved to ¥234.1 billion (+8.1%).

• Extraordinary gains decreased, and extraordinary losses increased, impacting net profit.

• Net interest-bearing debt increased by ¥281.1 billion from the previous fiscal year-end, reaching ¥5,302.2 billion (+2.7% from previous quarter).

Outlook and guidance

• Full-year forecasts remain unchanged: operating revenues projected at ¥3,295.0 billion (+6.8% YoY), operating income at ¥429.0 billion (+3.6%), and profit attributable to owners of parent at ¥255.0 billion (+2.9%).

• Annual dividend forecast maintained at ¥84 per share, with a payout ratio of 37.2%.

• Expectation of increased CapEx in Mobility in the second half, while Lifestyle Solutions CapEx will decrease.