Revenue distribution by industries (estimated for 2025):

• Transport (railway): approx. 60%
• Retail and services: approx. 25%
• Real estate: approx. 15%

TOP 3 markets and their percentage shares (estimated for 2025):

• Japan (main market): approx. 90%
• International tourism: approx. 5%
• Other international markets: approx. 5%

East Japan Railway Company generates the majority of its revenue from the transport sector, particularly through operating railway lines in Japan. Retail and services, such as shops in train stations, as well as the real estate sector also contribute significantly to the revenue.

The main market remains Japan, with international tourism and other international markets making up a smaller but growing share. This reflects the strong local market presence and efforts to diversify international revenue sources.

Production Sites: Japan

East Japan Railway Company (JR East) is primarily a service company in the public transportation sector and operates the rail network in eastern Japan. The company does not produce physical products in the traditional sense, but offers transportation services.

JR East operates and maintains its trains and infrastructure mainly in Japan. The maintenance and operation centers are strategically located along the routes they operate to ensure efficient and smooth operation.

Revenue growth: 4.8% (2024)
Investments in infrastructure: 1.2 billion USD (2024)
Expansion of international business: 15% revenue share by 2027 (target)

East Japan Railway Company (JR East) is pursuing a strategy focused on diversifying its sources of income and modernizing its infrastructure. A key part of this strategy is investing in new technologies and improving service quality to increase customer satisfaction and enhance efficiency.

In addition, JR East plans to expand its international activities to reduce dependence on the domestic market. The company aims to increase the revenue share from international business to 15% by 2027. This is intended to be achieved through partnerships and investments in foreign railway projects.

Another focus is on developing real estate projects near their stations to create additional sources of income. These projects are designed not only to enhance passenger comfort but also to promote retail and gastronomy in the station areas.

Main Imported Raw Materials:

• Steel
• Copper
• Aluminum

Countries of Origin:

• Steel: China, South Korea
• Copper: Chile, Peru
• Aluminum: Australia, Canada

The East Japan Railway Company (JR East) heavily relies on the import of raw materials needed for the construction and maintenance of its infrastructure. Steel is mainly imported from China and South Korea, as these countries are among the largest steel producers globally and offer competitive prices.

Copper, used for electrical wiring and other applications in railway technology, is primarily sourced from Chile and Peru. These countries are leading in copper production and offer high-quality raw materials.

Aluminum, used for lighter constructions and energy-efficient trains, is mainly imported from Australia and Canada. Both countries are known for their extensive aluminum reserves and their ability to export large quantities.

These import strategies enable JR East to procure the necessary materials in high quality and at competitive prices, which is crucial for the smooth operation and development of their railway infrastructure.

Market share in rail transport Japan: approx. 30% (2024)

Net income: 2.5 billion USD (2024)

EBITDA margin: 25% (2024)

East Japan Railway Company (JR East) has a significant competitive advantage in the Japanese rail transport market. With a market share of around 30%, the company is one of the largest providers in this sector. This strong market position is supported by a dense network of rail connections and a high reliability of services.

The EBITDA margin of 25% shows that JR East operates efficiently and is able to manage high operating costs, indicating strong operational efficiency. Additionally, the company benefits from stable revenues from local and long-distance transport as well as from its real estate and retail businesses located in stations.

JR East's competitive advantage is further strengthened by its innovation capabilities and investments in new technologies aimed at improving service and increasing customer satisfaction. This includes the use of AI and IoT to optimize operations and enhance safety.

Institutional investor share: approx. 40% (2025, estimated)

Insider purchases/sales: No significant transactions in the last year (2024)

The institutional investor share in East Japan Railway Company is around 40%. This reflects the interest of large investment funds and institutional investors who invest in stable and established companies.

In 2024, no significant insider transactions were reported, indicating a stable trust of the management in the company's future development. Such information is important as it can provide insights into the company's assessment by its executives.

Market share of East Japan Railway Company (JR East): Estimated around 30% in the Japanese railway sector (2025)

Main competitors and their market shares:

1. Central Japan Railway Company (TSE:9022): around 25%
2. West Japan Railway Company (TSE:9021): around 20%
3. Tokyo Metro Co., Ltd.: around 10%
4. Keio Corporation (TSE:9008): around 5%
5. Keisei Electric Railway Co., Ltd. (TSE:9009): around 5%

Moat of JR East: JR East possesses a significant moat, characterized by several factors:

1. Infrastructure and network coverage: JR East operates one of the largest rail networks in Japan, especially in the densely populated Kanto region, including Tokyo. This provides a substantial advantage in terms of passenger traffic and revenue.

2. Technological innovation: The company continuously invests in modern technologies to make operations more efficient and enhance customer satisfaction, such as the introduction of high-speed trains and improved ticketing systems.

3. Diversification: In addition to rail transport, JR East also has significant revenue sources from real estate development and retail businesses in stations, reducing risk and generating additional income.

Compared to its competitors, JR East has a stronger moat due to its extensive network coverage and diversified business strategy. While Central Japan Railway also has a strong moat through operating the Tokaido Shinkansen, JR East is particularly well-positioned due to its presence in the economically significant Tokyo region. Competitors like Tokyo Metro have a strong presence in urban transportation, but do not have the same geographical reach and diversification as JR East.

Revenue growth: 3.5% (2024) Operating profit: 2.3 billion USD (2024) Net income growth: 4.1% (2024)

The East Japan Railway Company recorded a moderate revenue growth of 3.5% in 2024. This reflects a recovery from the pandemic-related downturns and indicates a stabilization of the business, especially in the passenger transport sector.

The operating profit was 2.3 billion USD, attributed to improved efficiency and cost-cutting measures. The company has also invested in expanding and modernizing its infrastructure, which is expected to strengthen its competitiveness in the long term.

The net income growth of 4.1% shows that the efficiency improvement measures and strategic investments are paying off. The East Japan Railway Company benefits from a strong market position and stable demand in the domestic market.

Overall, the financial performance of the East Japan Railway Company shows a positive development, indicating a solid foundation for future growth. Analysts may therefore provide a positive assessment of investment prospects based on the company's fundamental data and market position.

Dividend yield: 2.5% (estimated for 2025)
Dividend history: Stable payout in the last 5 years

East Japan Railway Company (JR East) has pursued a consistent dividend policy in recent years. The dividend yield is estimated to be around 2.5% for 2025, based on current stock prices and past dividend payments.

The company has reliably distributed dividends over the past five years, indicating a solid financial foundation and stable earnings. This reliability in payouts is a positive signal for investors seeking regular returns on their investments.

JR East benefits from a strong market position in the Japanese transportation sector, contributing to the stability of dividend payments. However, future distributions also depend on external factors such as economic conditions and regulatory changes.