JR East Group Management Vision "To the Next Stage" 2034

JR East Group Management Vision "To the Next Stage" 2034

Investor Meeting (held on July 2, 2025)

Presentation

Presentation

Presentation with script

​Presentation with script

Q&A

Q&A

Streaming video

Streaming video

A Message from the President

East Japan Railway Company
President and CEOYoichi Kise

At the JR East Group, under our Group Management Vision ̶ “Move Up” 2027, we have continued to place the highest management priority on safety, while markedly shifting our focus from railway infrastructure to people. By empowering each employee to take a leading role in reform, we have worked to advance structural reforms across our operations through integration and collaboration. 
During this period, we faced severe challenges due to the COVID-19 pandemic. Fortunately, we were able to battle through these difficult times by not just refusing to give up, but by accelerating our efforts to reform our systems.
In the wake of the pandemic, we have experienced rapid changes in lifestyles and markets. Alongside population decline and an aging society with a low birthrate, we are also witnessing new workstyles and rapid technological advances, including generative AI. Transformations we once anticipated a decade into the future are now emerging as immediate challenges.
In response to this evolving environment, we are now setting forth a new Group Management Vision ̶ “To the Next Stage” 2034. This vision aims to elevate the JR East Group to the next stage of sustainable growth by going beyond the norm.
Even under “To the Next Stage” 2034, our unwavering commitment to safety as the Group’s highest management priority remains unchanged. So too does our belief that each employee is a key player in creating new value. Building upon this, we will strive to deliver both security and excitement by growing our two main axes ̶railway-focused Mobility and Lifestyle Solutions ̶and by generating synergies that are only possible because we operate in both. Through these efforts, we aim to create new value for society.
Our ultimate goal is a people-focused Lifestyle Transformation(LX).
The phrase “To the Next Stage” 2034 reflects our determination to bravely embrace continuous challenges and launch a new stage of growth. We are committed to upholding the management philosophy “good for all” returning the value created through our business activities to our customers, local communities, shareholders and investors, and to enhancing the well-being of our employees and their families, while also channeling it into the Group’s continued development.
We remain committed to meeting stakeholder expectations and driving sustainable growth as a forward-thinking corporate group that supports societal progress. As we embark upon this new journey toward “To the Next Stage” 2034, we sincerely appreciate your continued support and encouragement.

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JR East Group Management Vision “To the Next Stage” 2034

Group Philosophy, Key Concept, and Basic Principles

Group Philosophy

At JR East Group, we all continuously create security and excitement together, respond to the trust of our stakeholders, and enrich lifestyles of all people.

Key Concept*

Connecting security and excitement to the future
​

  • *Key Concept = Symbolically represents the collective efforts of the entire Group toward realizing “To the Next Stage” 2034.
Basic Principles
  1. 1We deliver security to everyone by pursuing “ultimate safety” and providing high-quality services.
  2. 2We create excitement with a people-focused approach and profoundly change society by leveraging our technological capabilities.
  3. 3We go beyond the “norm” through each employee’s challenges and create a new future by integration and collaboration.

Core of “To the Next Stage” 2034

Basic Policies of “To the Next Stage” 2034

Basic Policies of “To the Next Stage” 2034

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Go Beyond the “Norm”

  • Over the seven years of “Move Up” 2027, we were able to advance structural reforms with each employee playing a leading role.
  • We will further strengthen our corporate culture of bold challenges, while also deepening the entrepreneurial spirit of each employee to proactively shape the Group 10 years from now. In doing so, we aim to go beyond the “norm” and create the value envisioned in “To the Next Stage” 2034.
Go Beyond the “Norm”

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Growing Strategy through Dual-Axis Management

  • We will promote growth strategies that leverage our strengths in both Mobility and Lifestyle Solutions.
  • We will evolve Suica into a foundation for diverse businesses and enhance synergies through our dual-axis management.
Growing Strategy through Dual-Axis Management

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Overview of “To the Next Stage” 2034

  • Based on the trust built through each Group employee’s daily operations with diligence and sincerity, we will promote a dual-axis management approach centered on Mobility and Lifestyle Solutions, creating strong synergies across our operations.
  • Through the “Five Engines for Growth,” we will go beyond the “norm” and surpass the expectations and preconceived images that stakeholders have of our Group.​
  • By creating Lifestyle Transformation (LX) and delivering security and excitement to our stakeholders, we aim to realize enriched lifestyles for all people.
Overview of “To the Next Stage” 2034

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Five engines for growth

Pursuing ultimate safety, we enhance products and service quality to ensure everyone feels “security (peace of mind).” This expansion of trust forms the foundation of all our businesses, and will serve as the engine that accelerates our growth.

Peace of mind for everyone
  • * Ultimate safety = Where each employee develops their abilities and, through teamwork, takes proactive safety measures to continuously raise safety standards

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Each employee who carries out their daily operations with diligence and sincerity is the core strength of the JR East Group. Growing further through new challenges serves as the engine that accelerates the growth of the entire Group.

Fulfillment and growth for group employees

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By evolving our market-in approach and embracing a people-focused mindset, we propose products and services tailored to each customer, based on a deep understanding of the needs and challenges faced by our customers and local communities. This approach serves as the engine that accelerates growth.

People-focused, market-in approach
  • * People-focused, Market-in approach = Creating new products and services that bring security and excitement to customers by starting with “all people”̶including customers, local communities, co-creation partners, and employees̶as the foundation. 　Rather than relying solely on surface-level needs or data, this approach seeks to deeply empathize with individuals’ thoughts and values, and to explore their true challenges and desires together.

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  • We aim to deliver products and services that transform society through cutting-edge technological capabilities and strive to be a true technical service industry.
  • We will promote open innovation by incorporating cutting-edge technologies and expertise not only from within the Group but also from external sources. At the same time, we will integrate these technologies through a people-focused approach. Deepening technologies to strengthen existing businesses and evolving them to develop new ones will serve as the engine that accelerates growth.
Deepening and evolution of technological capabilities

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By actively utilizing the Group’s strengths and resources, sharing individual strengths and resources across the Group, and building win-win collaborative relationships through learning from external sources, we create synergy through integration and collaboration. This becomes the engine that accelerates growth.

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A World Where Lifestyle Transformation (LX) Has Been Realized

  • The JR East Group will address social issues and potential needs to innovate the lifestyles of customers and local communities, as well as the employees’ workstyles.
  • We will build a society filled with compassion and enthusiasm, and shape a brighter future.

LX Lifestyle Transformation

A Vibrant Society Where the Railway and the Town Are United

  • Promoting our Group’s unique railway network-oriented town development (J-TOD*）​
    • Strategically promoting town development that unites the station and surrounding area at major terminal stations [Terminal-Type]
    • Reorganizing our Group’s assets to create regional hubs and new flows of people and activity [Asset Reorganization Type]
    • Promoting community development along railway lines in tandem with transportation network enhancements, such as the establishment of new stations [Mobility Network Type]
  • Strengthening airport transportation through the development of the Haneda Airport Access Line (tentative name) in addition to the Tokyo Monorail
  • *J-TOD = JR East-Transit Oriented Development (Railway network-based town development leveraging the strengths of the JR East Group)
  • Creating solutions to social issues around the world, nurturing them, and supporting their implementation in society
  • ​Establishing Ekinaka healthcare networks inside train stations in collaboration with regional healthcare services
  • Expanding our comprehensive Mobility and Lifestyle Solution business developed in Japan to overseas markets and taking on the challenge of J-TOD* abroad
  • Providing solutions for the shift to a railway-focused lifestyle in overseas cities

Creating New Businesses with Technology and Services

  • Establishing a business model aimed at the sustainable growth of the railway industry
  • Building a technical support business to solve regional issues by leveraging our expertise in railway construction, improvement, and maintenance
  • Challenge to become one of the world’s leading overseas railway operators and consulting companies
  • ​Implementing a future-oriented, creative, and comprehensive human resource development program based on our accumulated technologies (including specified skilled human resources)
  • ​Realizing future mobility and building a technology sales scheme for external companies, using our accumulated technologies such as driverless and autonomous driving, wireless train control technology, and various monitoring technologies​
  • ​Expanding new businesses by leasing railway infrastructure and utilizing rolling stock assets
  • Creation of new businesses and acceleration of open innovation through startup collaboration
  • Proactive M&A for new business development and the realization of breakthrough growth

Comfortable and Seamless Services That Make Everyday Life Exciting

  • ​Promoting the shift from paper tickets by digitizing fare tickets and reducing magnetic tickets through the centralization of Suica’s server and cloud-based ticketing
  • walk-through ticket gates, payments are automatically completed without the need to touch the IC cardBy introducing 
  • Realizing future mobility that allows seamless travel to destinations through demand-responsive transportation tailored to individual needs
  • ​AI-based operation management of railway and other modes of transportation
  • Expand alliances with bus operators and strengthen transportation systems through initiatives like the introduction of flying cars

A More Convenient Life with Suica, Which Has Evolved into a Device for Lifestyle

  • Enabling the use of government services through the integration of Suica and Individual Number Cards
  • transforming Suica into a device for lifestyle, services in homes, inside stations, and in cities are expandingBy 
  • Leveraging Suica’s customer base for the creation of B2B businesses that provide new value to customers, primarily in station commercial areas
  • Building a digital platform that integrates mobility, commerce, entertainment, finance, healthcare, and community centered around transportation and stations
  • Offering services that go beyond the ordinary area where you can use them
  • ​Create Suica that is rooted in each region through integration with regionally linked IC cards
  • Expand the digital economy built around Suica as a lifestyle platform by integrating it with station-area businesses and taking it global
  • Go beyond the norm and evolve through added features such as code payments, electronic money transaction and local value systems

Bringing Vitality to Local Communities and Creating a Prosperous Japan

  • Working with local startups to create new ways to fix local issues
  • Building new businesses in collaboration with local communities to revitalize local economies (e.g., Hako-byun*）
  • Working with Japan Post to turn post offices and train stations into community hubs
  • Promoting the creation of community hubs through dual-location living and in-station kids’ cafeteria
  • *Hako-byun = Freight transport service using trains
  • ​Redesigning regional transportation through further promotion of modal mix
  • Working together with the local community to make the area around the station more attractive and lively (a compact city)
  • ​Revitalizing local communities and creating destinations for travel that only the JR East Group can offer, including the challenge of new style of station buildings
  • inbound demand​Aiming for regional development by capturing 
  • Exploring new tourism resources and promoting reconstruction tourism

Using AI and Robots to Transform Workstyles

  • ​Facility management using digital twins with point cloud data
  • Performing maintenance and other tasks by remotely operating and controlling robots, drones, and large machinery from a central base
  • ​Establishing the de facto standard for the use of AI in railway operations
  • Transforming work with generative AI and focusing on uniquely human tasks to improve productivity
  • Transferring planning and coordination Robot-assisted guidance tasks by linking the agent functions of advanced generative AI with business systems
  • Leverage generative AI to analyze aggregated financial data̶such as income and expenditure forecasts and budget-versus-actual results̶and to formulate strategies
  • Utilize generative AI for identifying high-risk areas and operations that require priority audits, collecting necessary data, and preparing audit reports
  • Developing a system where AI analyzes patterns of customers having trouble inside the station and robots approach them to offer help

A Sustainable and Prosperous Global Environment

  • Promoting the utilization of renewable energy
  • Achieving optimal energy management in urban development
  • Challenges toward the practical application of new energy (fusion energy, etc.)
  • decarbonization at the Kawasaki Thermal Power PlantPromotion of 
  • sustainable operation and biodiversity conservation at the Shinanogawa Power PlantBalancing 
  • Promoting efforts to recycle and repurpose waste generated by the group within the Group
  • ​Introduction of hydrogen hybrid trains into commercial operation
  • Making trains and facilities better for the environment by using cleaner fuels like hydrogen and biofuels to reduce environmental impact

Overview of Numerical Targets

  • As the KGI* (long-term management goal) of “To the Next Stage” 2034, we set a target of ​​ROE of 10% or more in FY2032.3.​
  • We aim to exceed operating revenue of 4 trillion yen in FY2032.3 through growth in existing businesses and breakthrough growth, thereby charting a growth trajectory toward an operating revenue scale of 5 trillion yen in FY2035.3.
  • To create conglomerate premium and maximize the corporate value of the Group, we will move forward with capital strategies like M&A. We will also pursue with the best possible financial partnerships depending on the business environment.
  • *KGI = Key Goal Indicator
*1 EBITDA = Operating income + Depreciation expense /  *2 ROA = Return  (=operating income) on assets /  *3 Net interest-bearing debt = Balance of Interest-bearing debt ‒ Balance of Cash and cash equivalents /  *4 ROE = Return (=profit attributable to owners of parent) on shareholders’ equity
Note 1: If the proposed revision to the upper limit of railway passenger fares is approved as submitted, the fare revision will be implemented starting in March 2026.  / Note 2: Based on the accounting standards applied by our Group as of the end of March 2025.

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Cash Allocation (FY2026.3‒2032.3)

  • In addition to expanding operating cash flow through profit growth in each business, we will maximize cash inflow by combining asset management with expansion of the scale of real estate sales and reduction of cross-shareholding.
  • The cash acquired will be allocated not only to growth capital and capital for maintaining and enhancing the foundation to generate earnings, but also to the “LX” capital aimed at promoting groundbreaking innovation.
  • We will gradually raise the dividend payout ratio to 40% by FY2028.3, as growth investments such as the TAKANAWA GATEWAY CITY development project stabilize. Also, we will conduct share buybacks flexibly.
Cash Allocation (FY2026.3‒2032.3)
Note 1: If the proposed revision to the upper limit of railway passenger fares is approved as submitted, the fare revision will be implemented starting in March 2026.  / Note 2: Based on the accounting standards applied by our Group as of the end of March 2025.

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