EAST JAPAN RAILWAY COMPANY FY2023.3 Third Quarter
Financial Results
Explanatory Materials
January 31, 2023
East Japan Railway Company
Highlights of FY 2023.3 Third Quarter Financial Results
Consolidated Results
Both revenues and income increased, with the first positive income in the last three years.
- Operating income increased for the second year in a row due to a significant increase in revenues of the Transportation business driven by the recovery from the impact of COVID-19.
- Third quarter income and profit at all levels have become positive for the first time in the last three years.
Segment
The Transportation, Retail & Services, and Other segments achieved increases in revenue and income.
- Transportation business achieved increases in revenues and incomemainly due to the change in the timing of recognition of Suica-related liabilities as revenue as well as an increase in passenger revenues.
- Retail & Services business achieved increases in revenues and incomemainly due to an increase in the sales of EKINAKA stores.
- Real Estate & Hotels business saw decreases in revenues and incomemainly due to a decrease in real estate sales revenue although sales of hotels and shopping centers increased.
- Other business achieved increases in revenues and incomemainly due to an increase in the sales of the credit card business.
〇Financial forecasts for FY 2023.3
In view of the actual results for the third quarter of FY 2023.3, we have made no change in our full- year forecasts for FY 2023.3 announced on April 27, 2022
〇Shareholder returns (dividend)
FY 2023.3 Interim dividend per share: 50 yen Year-end dividend per share: (forecast) 50 yen
2
FY2023.3 Third Quarter Financial Results(consolidated):
Changes in Operating Income
(¥ billion)
Suica liabilities: | A decrease in real | |||||
estate sales revenue: | ||||||
Recovery from the About +22.0 | △ | |||||
impact of COVID-19: | About 66.0 | |||||
About +307.0 | ||||||
Other changesA decrease in real | ||||||
in revenue: | estate cost of sales: | |||||
About -19.0 | ||||||
About +7.0 | An increase in personnel | |||||
expenses: About -30.0
Other changes in revenue: Main components
A decrease in railcar sales to non-JR | About | -13.0 |
railway companies | ||
Impact of natural disaster, such | About | -7.5 |
as earthquake and typhoon | ||
Recovery from the impact of COVID-19: Main components
JR passenger revenues | About | +230.0 |
Retail & Services | About | +35.0 |
Real Estate & Hotels (Hotels) | About | +15.0 |
Real Estate & Hotels (SC) | About | +13.0 |
An increase in energy expenses: About -22.0
An increases in cost, fees, etc., resulting from increases in revenue: About -17.0
An increase in other expenses: About -28.0
An increase in other expenses: | |||||
Main components | 112.0 | ||||
electricity | About | - 9.0 | |||
Tax expenses | About | - 4.0 | |||
-42.5
'21.4-12 | Revenues +244.2 | Expenses -89.7 (decrease in income due to increases in expenses) | '22.4-12 |
3
Trends in Third Quarter Financial Results
Financial Results (consolidated)
Third quarter financial results have recovered gradually over the years from '20.4-12, which was severely hit by COVID-19, to achieve an increase in revenues for the second year in a row and the first positive income for the last three years.
2,266.6 | Operating revenues | |
Operating income | ||
1,482.7
1,306.2
Transportation
An increase in revenues for the second year in
a row and the first positive income for the last three years due to the recovery in the use of railways
(¥ billion) | ||
Operating revenues | ||
1,545.1 | Operating income | |
820.6 950.5
316.8 | |||
-343.0 | -156.6 | 25.4 | |
'19.4-12 | '20.4-12 | '21.4-12 | '22.4-12 |
Real Estate & Hotels
- year-on-yeardecrease in revenue mainly due to a decrease in real estate sales despite increases in
sales of hotels and shopping centers
Retail & Services
Revenues increased due to the recovery in the use of EKINAKA stores.
(¥ billion)
Operating revenues | ||||
385.3 | Operating income | |||
231.2 | 205.1 | 239.3 | ||
28.3 | -0.8 | 8.4 | 23.1 | |
'19.4-12 | '20.4-12 | '21.4-12 | '22.4-12 |
Others
An increase in revenues due to the recovery in the use of credit cards
(¥ billion)
Operating revenues | 67.8 | Operating revenues | |||||||||||||||
Operating income | Operating income | ||||||||||||||||
268.2 | 281.2 | 244.6 | 53.7 | 45.7 | 49.9 | ||||||||||||
427.2 | |||||||||||||||||
200.6 | |||||||||||||||||
-323.0 | -42.5 | 112.0 | |||||||||||||||
101.0 | 15.1 | ||||||||||||||||
67.0 | 13.8 | 54.7 | 7.3 | 7.0 | |||||||||||||
'19.4-12 | '20.4-12 | '21.4-12 | '22.4-12 | 4.3 | |||||||||||||
'19.4-12 | '20.4-12 | '21.4-12 | '22.4-12 | ||||||||||||||
'19.4-12 | '20.4-12 | '21.4-12 | '22.4-12 |
- The segment breakdown of operating revenues is based on sales to external customers.
- The new accounting standard for revenue recognition has been applied since '21.4-12.
* The JR advertisement business has been reclassified from the Transportation business to Retail & Service business since '20.4-12. | 4 |
Railway Business
Actual results and forecasts of passenger revenues: Comparison with pre-COVID-19 levels
■Commuter passes revenues Third quarter results : About 77%
■Non-commuter passes revenues
Third quarter results : About 80% for conventional lines (Kanto Area Network) About 67% for Shinkansen Network
(%） FY 2023.3
Conventional lines (Kanto Area Network)
Shinkansen Network
Conventional lines (Kanto Area Network): Expected to reach about 95% at the end of March 2023
Shinkansen Network: Expected to reach about 90% at the end of March 2023
'22.4-6 | '22.7-9 | '22.10-12 | '23.1-3 | 5 |
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EJRC - East Japan Railway Company published this content on 31 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2023 06:36:07 UTC.
