Material Procurement Information

Code of Conduct Regarding Material Procurement of JR East
- Procurement Policy -

1. Pursuing Safety
JR East places safety as its top priority for its management, and will continue proceeding with its approaches to improving safety. For the procurement of goods, JR East will seek goods which contribute to the securement and further improvement of safety.
2. Technology Improvement
JR East will aim for technology innovation in various fields, toward the further advancement of railways. In order to do so, JR East will actively adopt outside developmental and technological capabilities, through joint research and joint development with manufacturers, universities, and research institutions, etc. which meet the needs of JR East, and will strive for the procurement of superior goods.
3. Broad Procurement Regardless of Whether Domestic or Foreign
JR East will seek high-quality and low-cost goods, and will also conduct procurement placing a high value on prompt and sufficient after-sales services in early failures and malfunctions, in addition to regular maintenance. In doing so, JR East will conduct broad procurement, regardless of whether domestic or foreign, through seeking excellent business partners who can provide such services.
4. Provision of Equitable and Fair Transactional Opportunities
In the procurement procedures, which include pre-qualification and selection procedures, the methods thereof, the requirements for business partners, the pre-qualification and selection standards, the disclosure of technological requirements, and tests, will be handled equitably and fairly, in a nondiscriminatory manner, regardless of whether domestic or foreign.
The selection of the procurement source and the procurement will be handled equitably and fairly, pursuant to objective standards based on economic rationality from a perspective of benefit and company value of JR East such as quality, reliability in safety, technological capability, price, delivery date, accident response, and after-sales services system.
5. Establishment of Transactional Relationships Which Lead to Mutual Development
JR East will aim for comprehensive communications with business partners, and will establish relationships based on mutual trust.
Moreover, JR East will establish transactional relationships which may lead to mutual growth and development, by working on goods and technology improvement, by continuously cooperating with business partners.
In addition to the above, JR East will focus on procuring necessary goods stably and timely.
6. Fulfillment of Social Responsibility and Appropriate Handling of Information, etc.
In procurement, JR East will focus on the fulfillment of corporate social responsibility, by taking into consideration compliance with laws and regulations, and the protection of the global environment.
JR East will strictly manage intellectual property of JR East and the business partners, important information regarding the operational security of the railways, and other confidential information.
7. Providing and Updating Website Information on Procurements
JR East recognizes the importance of providing information on procurement (such as procurement methods, criteria for screening and selection, and track record and expectations of procurement), to business partners and potential business partners who are willing to become business partners in order to timely procure high-quality and low-cost goods, regardless of whether domestic or foreign, with sufficient after-sales services and to broadly seek superior technology and goods, both domestically and from abroad, for the further advancement of railways. JR East will continuously display information on "Basic Principles," "Procurement Policy," "Requests for Possible Business Partners," "Standard Flow of Contractual Procedures," "Procurement Results and Major Items Procured," "Major Track Records of JR East's Procurement from Overseas Suppliers," and "Expectations of Procurement" in JR East's website, in Japanese and English, which will be subject to regular review, and update.

(As of October 28, 2014)