Fiscal Year Ending March 2026 Earnings Presentation

Overview of Performance

In fiscal year 2025, both standalone and consolidated results achieved revenue and profit growth, with operating revenue of 2,006.2 billion yen (up 9.5% YoY), operating income of 830.1 billion yen (up 18.1% YoY), and net income of 552.8 billion yen (up 20.6% YoY). Transportation revenue increased to 111% compared to fiscal year 2024, with enhanced profitability of the Tokaido Shinkansen centering the growth strategy. Meanwhile, fiscal year 2026 is expected to see a decline in revenue and profit on both standalone and consolidated bases; however, the company will continue to promote its growth strategy.

Growth Strategy and Shareholder Returns

As part of efforts to expand revenue, further advancements to the Shinkansen are planned, including the introduction of private room-style premium class seats scheduled for October 2026. Operational reforms aim to achieve a steady cost reduction of 80 billion yen over 10 to 15 years, with approximately 30 billion yen realized by fiscal year 2025. Amid an anticipated 40 billion yen increase in costs due to inflation, the company plans to respond through pricing strategies and operational reforms. For shareholder returns, stable dividends will be maintained with an annual dividend of 32 yen (16 yen at year-end), along with a 20.0 billion yen treasury stock acquisition.