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Presentation materials for financial results9020East Japan Railway CompanyTransportation and Logistics

Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, operating revenues, operating income and ordinary income increased, mainly due to increased railway usage, fare revisions and higher real estate rental income. Net income attributable to owners of the parent decreased, however, due mainly to lower gains on sales of investment securities.

Worth reading
69In focus
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
573
¥100 million (year-on-year increase in operating revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales7,727 Hundreds of millions of yen+8.0%
Operating profit1,255 Hundreds of millions of yen+9.4%
Ordinary income1,068 Hundreds of millions of yen+8.0%
Net income680 Hundreds of millions of yen-13.6%
Full-year earnings forecast
Operating revenue
32,950 Hundreds of millions of yen
Operating profit
4,290 Hundreds of millions of yen
Ordinary income
3,530 Hundreds of millions of yen
Profit attributable to owners of the parent
2,550 Hundreds of millions of yen
EBITDA
8,870 Hundreds of millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in JR transportation revenueApproximately +¥38 billion
  • Higher distribution and services, real estate and hotel, and other revenue, excluding real estate salesApproximately +¥15 billion
  • Higher distribution and services and other revenueApproximately +¥9 billion
  • Decrease in real estate sales revenueApproximately -¥4.5 billion
  • Decrease in cost of real estate salesApproximately +¥500 million
  • Higher personnel expensesApproximately -¥16 billion
  • Increase in JR repair expensesApproximately -¥7.5 billion
  • Higher costs in distribution and services and real estate and hotels, excluding real estate salesApproximately -¥5.0 billion
  • Increase in other expensesApproximately -¥18.5 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Fare revisions (total)
    FiguresRevision rate: 7.1%; revenue growth rate: 5.0%
  • Commuter pass fare revisions
    FiguresRevision rate: 11.0%; revenue growth rate: 8.7%
  • Non-commuter fare revisions
    FiguresFare revision rate: 7.8%; revenue growth rate: 5.7%
  • Power and fuel costs
    FiguresPlan for the fiscal year ending March 2027: ¥96 billion; 114.0% of prior-year actual
  • Repair expenses
    FiguresPlan for the fiscal year ending March 2027: ¥362 billion; 108.8% of prior-year actual
New initiatives
  • Changes in Reportable Segments
  • Review of the calculation method for railway usage
Key KPIsA metric the company considers important as a management benchmark.
  • Total passenger-kilometers32,153 million passenger-kilometers
    Year on year against the same period last year+102.1%
  • Total railway transportation revenue4,840 Hundreds of millions of yen
    Year on year against the same period last year+108.6%
  • Total Shinkansen passenger-kilometers103 % of prior-year actual
    Year on year against the same period last year+103.0%
  • Weekday commuter pass usage at automatic ticket gates in the Tokyo metropolitan area102 % of prior-year actual
    Year on year against the same period last year+102.0%
  • Hotel occupancy rate79.9 ％
    Year on year against the same period last year+0.7 percentage points year on year
  • Average hotel room rate¥20,544 per room
    Year on year against the same period last year+105.0%
  • Transaction volume handled by proprietary payment services12,342 Hundreds of millions of yen
    Year on year against the same period last year+105.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Passenger-kilometers32,153 million passenger-kilometers
    Year on year against the same period last year+102.1%
  • Railway transportation revenue4,840 Hundreds of millions of yen
    Year on year against the same period last year+108.6%
  • Hotel occupancy rate79.9 ％
    Year on year against the same period last year+0.7 percentage points year on year
  • Average hotel room rate¥20,544 per room
    Year on year against the same period last year+105.0%
Segment results
Transportation
Net Sales
5,264 Hundreds of millions of yen+8.5%
Operating profit
838 Hundreds of millions of yen+23.7%
Distribution and services
Net Sales
989 Hundreds of millions of yen+4.7%
Operating profit
153 Hundreds of millions of yen+7.6%
Real estate and hotels
Net Sales
1,164 Hundreds of millions of yen+5.4%
Operating profit
190 Hundreds of millions of yen-32.9%
Other
Net Sales
308 Hundreds of millions of yen+23.7%
Operating profit
65 Hundreds of millions of yen+89.4%
Medium-term management plan targets
Fiscal year ending March 2028
Operating revenue
35,180 Hundreds of millions of yen
Operating profit
4,880 Hundreds of millions of yen
EBITDA
9,580 Hundreds of millions of yen
ROEAt least 8%
Financial targets
ROA
Actual results3.9％
Forecast for the fiscal year ending March 20273.9％
Target for the fiscal year ending March 20284.3％
ROE
Actual results8.4％
Forecast for the fiscal year ending March 20278.2％
Target for the fiscal year ending March 2028At least 8%
Net interest-bearing debt / EBITDA
Actual results5.8x
Market Size / Share
Average vacancy rate in the five central Tokyo districts1.99% (June 2026)
Vacancy rate of properties operated by JR East Building3.5% (June 2026)
Capital expenditures
¥937 100 million first-quarter actual
Annual Dividend
Annual¥84 per share
Interim¥42 per share
End of period¥42 per share
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales7,727 Hundreds of millions of yen (YoY +8.0%)
Operating profit1,255 Hundreds of millions of yen (YoY +9.4%)
Ordinary income1,068 Hundreds of millions of yen (YoY +8.0%)
Net income680 Hundreds of millions of yen (YoY -13.6%)
Full-year earnings forecastOperating revenue 32,950 Hundreds of millions of yen / Operating profit 4,290 Hundreds of millions of yen / Ordinary income 3,530 Hundreds of millions of yen / Profit attributable to owners of the parent 2,550 Hundreds of millions of yen / EBITDA 8,870 Hundreds of millions of yen
Segment resultsTransportation Net Sales 5,264 Hundreds of millions of yen (YoY +8.5%) / Operating profit 838 Hundreds of millions of yen (YoY +23.7%) / Distribution and services Net Sales 989 Hundreds of millions of yen (YoY +4.7%) / Operating profit 153 Hundreds of millions of yen (YoY +7.6%) / Real estate and hotels Net Sales 1,164 Hundreds of millions of yen (YoY +5.4%) / Operating profit 190 Hundreds of millions of yen (YoY -32.9%) / Other Net Sales 308 Hundreds of millions of yen (YoY +23.7%) / Operating profit 65 Hundreds of millions of yen (YoY +89.4%)
Breakdown of Factors Affecting the ChangeFactors Increase in JR transportation revenue / Amount Approximately +¥38 billion, Factors Higher distribution and services, real estate and hotel, and other revenue, excluding real estate sales / Amount Approximately +¥15 billion, Factors Higher distribution and services and other revenue / Amount Approximately +¥9 billion, Factors Decrease in real estate sales revenue / Amount Approximately -¥4.5 billion, Factors Decrease in cost of real estate sales / Amount Approximately +¥500 million, Factors Higher personnel expenses / Amount Approximately -¥16 billion, Factors Increase in JR repair expenses / Amount Approximately -¥7.5 billion, Factors Higher costs in distribution and services and real estate and hotels, excluding real estate sales / Amount Approximately -¥5.0 billion, Factors Increase in other expenses / Amount Approximately -¥18.5 billion
Key KPIsIndicator name Total passenger-kilometers / Value 32,153 million passenger-kilometers / Year on year against the same period last year 102.1 million passenger-kilometers, Indicator name Total railway transportation revenue / Value 4,840 Hundreds of millions of yen / Year on year against the same period last year 108.6 Hundreds of millions of yen, Indicator name Total Shinkansen passenger-kilometers / Value 103 % of prior-year actual / Year on year against the same period last year 103 % of prior-year actual, Indicator name Weekday commuter pass usage at automatic ticket gates in the Tokyo metropolitan area / Value 102 % of prior-year actual / Year on year against the same period last year 102 % of prior-year actual, Indicator name Hotel occupancy rate / Value 79.9 ％ / Year on year against the same period last year +0.7 percentage points year on year, Indicator name Average hotel room rate / Value ¥20,544 per room / Year on year against the same period last year ¥105 per room, Indicator name Transaction volume handled by proprietary payment services / Value 12,342 Hundreds of millions of yen / Year on year against the same period last year 105 Hundreds of millions of yen
Unit price and quantity metricsIndicator name Passenger-kilometers / Value 32,153 million passenger-kilometers / Year on year against the same period last year 102.1 million passenger-kilometers, Indicator name Railway transportation revenue / Value 4,840 Hundreds of millions of yen / Year on year against the same period last year 108.6 Hundreds of millions of yen, Indicator name Hotel occupancy rate / Value 79.9 ％ / Year on year against the same period last year +0.7 percentage points year on year, Indicator name Average hotel room rate / Value ¥20,544 per room / Year on year against the same period last year ¥105 per room
Assumptions Underlying the Business OutlookItem Fare revisions (total) / Figures Revision rate: 7.1%; revenue growth rate: 5.0%, Item Commuter pass fare revisions / Figures Revision rate: 11.0%; revenue growth rate: 8.7%, Item Non-commuter fare revisions / Figures Fare revision rate: 7.8%; revenue growth rate: 5.7%, Item Power and fuel costs / Figures Plan for the fiscal year ending March 2027: ¥96 billion; 114.0% of prior-year actual, Item Repair expenses / Figures Plan for the fiscal year ending March 2027: ¥362 billion; 108.8% of prior-year actual
Medium-term management plan targetsFiscal year ending March 2028 Operating revenue 35,180 Hundreds of millions of yen / Operating profit 4,880 Hundreds of millions of yen / EBITDA 9,580 Hundreds of millions of yen / ROE At least 8%
Financial targetsROA Actual results 3.9％ / Forecast for the fiscal year ending March 2027 3.9％ / Target for the fiscal year ending March 2028 4.3％ / ROE Actual results 8.4％ / Forecast for the fiscal year ending March 2027 8.2％ / Target for the fiscal year ending March 2028 At least 8% / Net interest-bearing debt / EBITDA Actual results 5.8x
Annual DividendAnnual ¥84 per share / Interim ¥42 per share / End of period ¥42 per share
Capital expenditures¥937 100 million (first-quarter actual)
Market Size / ShareAverage vacancy rate in the five central Tokyo districts 1.99% (June 2026) / Vacancy rate of properties operated by JR East Building 3.5% (June 2026)
New initiativesChanges in Reportable Segments, Review of the calculation method for railway usage
Items this document does not state (13)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Operating revenues increased due to higher railway transportation revenue, sales at station retail stores, office rental income, shopping center and hotel sales, and sales related to the IC card business. Operating income was supported by higher JR transportation revenue and other factors, but was weighed down by lower real estate sales revenue and higher personnel expenses, repair expenses and other costs. The decrease in net income was due mainly to lower gains on sales of investment securities.

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Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027 | East Japan Railway Company (9020) timely disclosure | Komori