FY2023.3 Second Quarter
Financial Results
Explanatory Materials
October 31, 2022
East Japan Railway Company
Highlights of FY 2023.3 Second Quarter Financial Results
Consolidated | Both revenues and income increased, with the first positive income in the last three years. | |
Results | | All segments achieved revenue growth as a rebound from the impact of COVID-19, and operating income |
increased for the second year in a row. | ||
| Second quarter income and profit at all levels have become positive for the first time in the last three years. | |
Segment All segments achieved increases in revenues 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 achieved increases in revenues and incomemainly due to an increase in the sales of hotels and shopping centers.
- 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 second 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
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FY2023.3 Second Quarter Financial Results(consolidated): Changes in Operating Income
Suica liabilities:
About +22.0
Recovery from the impact of COVID-19: About +230.0
Impact of natural disaster, such as earthquake and typhoon: About -7.5
Other changes in revenue: About -7.0
Increase in energy expenses: About -12.0
Increase in electricity expenses: About -5.0
(¥ billion)
Increases in cost, fees, etc., resulting from increases in revenue: About -15.0
Increase in personnel expenses: About -13.0
Increase in other | |||||||||||||||||||||
Other changes in revenue: Main components | expenses: About -9.5 | ||||||||||||||||||||
Decrease in railcar sales to non-JR railway | About | -10.0 | |||||||||||||||||||
companies | 66.7 | ||||||||||||||||||||
Increase in other expenses: | |||||||||||||||||||||
Reactionary increase related to revenue | About | +3.0 | |||||||||||||||||||
Main components | |||||||||||||||||||||
recognition (membership revenue) | |||||||||||||||||||||
Tax | About - 4.0 | ||||||||||||||||||||
Real estate sales revenue | About | +2.5 | |||||||||||||||||||
expenses | |||||||||||||||||||||
Recovery from the impact of COVID- | |||||||||||||||||||||
19: Main components | |||||||||||||||||||||
-115.8 | JR passenger revenues | About | +176.0 | ||||||||||||||||||
Retail & Services | About | +24.0 | |||||||||||||||||||
Real Estate & Hotels (SCs) | About | +10.0 | |||||||||||||||||||
Real Estate & Hotels (Hotels) | About | +9.5 | |||||||||||||||||||
'21.4-9 | Revenues +237.2 | Expenses -54.6 (decrease in income due to increases in expenses) | '22.4-9 |
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Trends in Second Quarter Financial Results
Financial Results (consolidated)
Second quarter financial results have recovered gradually over the years from '20.4-9, 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.
Operating revenues | ||
1,518.8 | Operating income | |
877.8
787.2
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
Operating revenues
Operating income
1,041.2
495.2 586.9
224.1
-294.1-143.9 17.3
'19.4-9'20.4-9'21.4-9'22.4-9
Real Estate & Hotels
An increase in revenues for the second year in a row due to the recovery in the use of hotels and shopping centers
175.6 Operating revenues
Operating income
Retail & Services
Revenues increased due to the recovery in the use of EKINAKA stores.
(¥ billion)
257.0 Operating revenues
Operating income
138.2 128.9 152.1
18.9 -5.61.7 11.7
'19.4-9 | '20.4-9 | '21.4-9 | '22.4-9 |
Others
An increase in revenues due to the recovery in the use of credit cards
(¥ billion)
44.8 Operating revenues
Operating income
296.5
119.5
133.6
34.2 | 32.1 |
28.3 |
-295.2-115.866.7
'19.4-9'20.4-9'21.4-9'22.4-9
44.0 | 22.7 | 31.9 | |
0.8 | |||
'19.4-9 | '20.4-9 | '21.4-9 | '22.4-9 |
9.3
3.5 3.0 4.3
'19.4-9'20.4-9'21.4-9'22.4-9
- The segment breakdown of operating revenues is based on sales to external customers.
- The new accounting standard for revenue recognition has been applied since '21.4-9.
- The JR advertisement business has been reclassified from the Transportation business to Retail & Service business since '20.4-9.
Railway Business
Actual results and forecasts of passenger revenues: Comparison with pre-COVID-19 levels
■Commuter passes revenues Second quarter results : About 77%
Plans: Remain at about 75% of pre-COVID-19 levels
■Non-commuter passes revenues
Second quarter results : About 78% for conventional lines (Kanto Area Network) About 62% for Shinkansen Network
Plans(excluding special factors) | |
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 |
(%) FY 2023.3
Conventional lines (Kanto Area Network)
Shinkansen Network
'22.4-6'22.7-9
- Passenger revenues in October have recovered almost to the level of the initial plan.
'22.10-12'23.1-3
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
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EJRC - East Japan Railway Company published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2022 06:28:03 UTC.