East Japan Railway Company (9020) investor relations material

Executive summary

• Operating revenues rose to ¥2,240.0 billion for the third quarter, up 5.4% year-over-year, marking the fifth consecutive annual increase, driven by higher railway usage, EKINAKA store sales, and the opening of TAKANAWA GATEWAY CITY.

• Operating income decreased by ¥2.9 billion (0.8%) year-over-year to ¥349.6 billion due to higher personnel and maintenance costs and lower real estate sales profit.

• Profit attributable to owners of parent increased by ¥2.8 billion (1.3%) year-over-year to ¥219.4 billion, mainly from gains on sales of investment securities.

• Performance is trending in line with the full-year plan; no changes to full-year forecasts or dividend guidance.

Financial highlights

• Operating revenues: ¥2,240.0 billion (up 5.4% year-over-year).

• Operating income: ¥349.6 billion (down 0.8% year-over-year).

• Ordinary income: ¥302.0 billion (down 2.2% year-over-year).

• Profit attributable to owners of parent: ¥219.4 billion (up 1.3% year-over-year).

• Dividend forecast: ¥70 per share, payout ratio 33.3%.

Outlook and guidance

• No change to full-year financial forecasts or dividend payments; operating revenues forecast at ¥3,058.0 billion, operating income at ¥405.0 billion, and year-end dividend per share forecast at ¥35.

• Full-year segment operating income for transportation forecasted at ¥192 billion, up ¥15.9 billion year-on-year.

• Long-term targets for FY2032.3 include operating revenue over ¥4 trillion, ROE of 10% or more, and net interest-bearing debt/EBITDA of approximately 5x.

• Expect profit improvement in Q4 as maintenance costs were front-loaded in Q3.