Investor Presentaiton

о Reform) Fundamental Strengthening of Management Culture: (Foundation: Structural The Group will aim for a flexible cost structure for the sustainable operation of its railway business into the future. In order to do so, the Group will work to reduce fixed operation costs by for example using new technologies such as automated operation and smart maintenance, streamlining equipment, and revising work processes through technology development that utilizes ideas of front-line employees. Like the "off-peak commuter pass" service introduced in March 2023, the Group will conduct review to achieve more flexible management of the fundamentals for the operation of the railway business, such as train fare systems and train schedules, based on how services are used. At the same time, for local lines, we will advance discussions with local municipalities, etc. in areas alongside the railway lines to establish sustainable transportation systems. Moreover, the Company is restructuring its organization with the aim of flexibly responding to the rapidly changing business environment and enhancing management structure through the improvement of each employee's motivation for work and the improvement of productivity. We will promote the transfer of authority and integration among systems or between frontline offices and planning departments in order to create value and solve problems more speedily and at locations closer to customers, while expanding the fields for our employees' success. Promotion of Strategies for Growth Foundation The Group will clarify the strategies such as those related to human resources, innovation and intellectual property, and finance and investment that form the foundation of our efforts, and work as one towards the realization of the vision. Regarding human resource strategy, the Group will establish a system where its employees' bold challenges are rewarded and improve their well-being. In order to drastically reform our business structure, we will aim for human capital management that accelerates management strategy by utilizing internal talented people and securing external talented people in our focused and growth areas. In addition, regarding innovation and intellectual property strategies, the Group will promote strategic acquisition and utilization of intellectual property in each business. It will do so while promoting business creation and operational efficiency with digital transformation (DX) such as technology development that uses internal and external technologies and insights, etc. and business improvement and value creation that uses digital technology. Furthermore, regarding finance and investment strategies, the Group will pursue consolidated cash flow management based on a medium- to long-term perspective, while further promoting the system that enables front-line employees to come up with ideas and be creative. Practice of ESG Management From the environment, social, and governance perspectives, the Group will pursue ESG management and make efforts to contribute to the sustainable development of local 38

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