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Investor Presentaiton

On "fundamentally strengthening our management culture (reforming our corporate structure)," the Group implemented initiatives to improve productivity, such as the expansion of conductorless operations, the promotion of automated operation technology, and the acceleration of digital transformation (DX) including through smart maintenance. Furthermore, in order to create a sustainable JR East Group since June 2022, the Group forged ahead with the three reforms of operational reform, working style reform, and worksite reform to enhance the job satisfaction of all Group employees, while advancing the restructuring of the JR East organization. As of March 31, 2023, "inter-organizational projects" are under way at a total of 34 locations, where our staff members across departments and organizations exercise their creativity and work close to customers in facing and resolving issues regarding their respective areas or lines. With regards to "implementing ESG management," the Group formulated the "Energy Vision 2027 - Connect” in July 2022 as our energy strategy for the future, and with a view to achieving net zero CO2 emissions for the entire Group by fiscal 2051, we introduced energy-saving equipment for stations, and trains and promoted energy-saving operations, as well as the development of renewable energy sources such as wind power and solar power. Also, aiming to realize regional revitalization through co-creation with communities, the Group promoted various initiatives, including community development centered on regional core stations in Iwaki, Aomori and Niigata, expanding service areas of multi-function regional IC cards in Yamagata and Hirosaki, and the opening of new stations on the Keiyo Line and the Tazawako Line. We will continue to make Group-wide efforts with the aim of realizing our management vision "Move Up" 2027. During the fiscal year under review, operating revenues increased by 21.6% from the previous year to ¥2,405.5 billion, due mainly to revenue increases in all segments, which were attributable to the recovery from the impact of COVID-19. As a result of such increase in operating revenues, we recorded operating profit of ¥140.6 billion (operating loss of ¥153.9 billion in fiscal 2022), ordinary profit of ¥110.9 billion (ordinary loss of ¥179.5 billion in fiscal 2022), and profit attributable to owners of parent of ¥99.2 billion (loss attributable to owners of parent of ¥94.9 billion in fiscal 2022). (3) Segment Information (a) Transportation In the Transportation segment, JR East made concerted Group-wide efforts to enforce rigorous measures in response to COVID-19 while ensuring the provision of safe and reliable transportation and high-quality services. As a result, operating revenues in the Transportation segment increased by 26.1%, to ¥1,680.3 billion, due mainly to increases in passenger revenues, which were attributable to the recovery from the impact of COVID-19, as well as the change in the timing of recording liabilities relating to Suica in revenues, and operating loss was ¥24.0 billion (operating loss of ¥285.3 billion in fiscal 2022). (b) Retail & Services In the Retail & Services segment, JR East pressed forward with the "Beyond Stations" concept to transform railway stations from transportation hubs to 40
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