Restoring the Financial Foundation through Structural Reform and the Prioritization of Initiatives

「The JR West Group Medium-Term Management Plan 2030, formulated in April 2026, sets as its basic policies for “co-creation and challenge” toward the future the realization of “transformation to safe, high-quality and sustainable mobility” and “transformation of the business portfolio” by leveraging the Group’s strengths, including customer touchpoints and data, as well as technology and know-how.」

「To advance portfolio management, we revised some of our income and expense classifications at the end of the previous consolidated fiscal year to better reflect the status of each business.」

「In light of the risks associated with the management environment described above, we are advancing initiatives to become a corporate group that continues to create value in the society of the future. To accelerate the realization of our aspirations and long-term vision and achieve the goals of the updated Medium-Term Management Plan 2025, we are giving top priority to improving safety while optimizing our business portfolio by revitalizing the mobility services field, centered on railways, and expanding the life design field.」

「The Group updated the JR West Group Medium-Term Management Plan 2025 in April 2024. To respond to rapid and structural changes in the business environment, it will improve safety as its foundation, revitalize and structurally reform the mobility services field, and create new businesses in the life design field, thereby accelerating the realization of “Our Purpose” and the “JR West Group Long-Term Vision 2032” and creating social and economic value.」

「As a result, operating revenue increased 17.2% from the previous fiscal year to ¥1.635 trillion. In addition, as structural reforms progressed, operating income increased 114.1% to ¥179.7 billion.」

「In addition, as structural reforms progressed, operating income increased 146.4% year on year to ¥172.4 billion and ordinary income increased 169.1% to ¥161.0 billion. Profit attributable to owners of the parent for the quarter, after deducting income taxes and other taxes, increased 25.8% to ¥109.8 billion, despite the reversal of the tax measure applied under the previous fiscal year's business adaptation plan.」

「During the first quarter of the fiscal year under review, as customer usage and personal consumption recovered with the diminishing impact of the novel coronavirus, we implemented structural reforms such as cost reductions and measures to stimulate demand.」

「Under the Medium-Term Management Plan 2025, it is an important management issue to remain acutely aware of not only long-term changes in the external environment, such as population decline and accelerating changes in social behavior, but also rapidly changing current conditions, including the international situation; to improve our ability to respond to a wide range of changes in society and market structures, with safety as the foundation; and to rebuild our business portfolio and pursue continuous reform of our business structure.」

「In addition, while maintaining safety as a prerequisite, we will continue to pursue structural reforms, including cost reductions, and rebuild our financial base.」

「We will implement cost reductions through structural reforms in the railway business and other measures.」

「On the other hand, given recurring disasters and declining usage levels resulting from changes in the behavior of customers and society, reform of the railway business’s high-cost structure is essential.」

「Regarding the Shinkansen, which is central to the above initiatives, we will improve the convenience of the Sanyo Shinkansen by optimizing train operations in line with usage and establishing a rolling stock deployment system through the introduction of the latest “N700S” trains, thereby creating an environment in which Shinkansen rolling stock can be used reliably over the long term.」

「Based on the above, we will restructure our medium- to long-term strategy around the following 4 pillars to maximize results from limited resources: ① “Improving safety, starting from the Fukuchiyama Line train accident” ... “All periods” ② “Deepening coexistence with local communities and taking on the challenge of creating new value” ... “All periods” ③ “Strengthening management” ... “Transformation and reconstruction period (Phase I)” and “Transformation and reconstruction period (Phase II)” ④ “Corporate reform to enhance the ability to respond to change” ... “Transformation and reconstruction period (Phase I)”」

「Furthermore, as a medium- to long-term issue, taking into account structural changes in future usage of the railway and creative businesses, we will strengthen management by restoring cash flow generation capacity through structural reforms and restoring the financial foundation by prioritizing initiatives, while improving our ability to respond to an unpredictable future and working to enhance corporate value over the long term.」

「Furthermore, as a medium- to long-term issue, taking into account structural changes in future usage of the railway and creative businesses, we will strengthen management by restoring cash flow generation capacity through structural reforms and restoring the financial foundation by prioritizing initiatives, while improving our ability to respond to an unpredictable future and working to enhance corporate value over the long term.」