Balance Sheet(As of March 31, 2023)(Million yen)
Item(Assets)
Current assets
Cash and deposits
Trade accounts receivable
Accounts receivable
Merchandise
Short-term loans receivable
Current portion of long-termloans receivable

Amount87,777
1,706
22,022446
4460,3532,084

Item(Liabilities)
Current liabilities
Accounts payable - otherAccrued expenses
Accrued consumption taxes
Income taxes payable
Unearned revenue
Deposits received fromcustomers

Amount32,8736,746
1139031,230
291
22,654

Prepaid expenses

925

Current portion of guarantee
deposits and leasehold deposits
received

Other

193

Provision for bonuses

368

Provision for sales promotion
expenses

55

Other

303

Non-current assets
Property, plant and equipment
Buildings

82,99445,916
41,047Structures

474

Machinery and equipment

164

Furniture and fixtures
Land
Construction in progress

926
2,313
988

Non-current liabilities
Guarantee deposits andleasehold deposits received
Provision for retirement
benefits
Asset retirement obligations
Other

Total liabilities
Intangible assets
Software
Other
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term prepaid expenses
Guarantee deposits andleasehold deposits
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful
accounts

738
705
33

204

20,375
17,073
1,777
1,471
53

53,249(Net assets)
Shareholders’ equity
Share capital

117,307
2,375

36,338
897
1,944
166

Capital surplus
Legal capital surplus

5,964
5,964

4,469

Retained earnings

108,967

24,4494,830
31

Legal retained earnings
Other retained earnings
General reserve
Retained earnings
brought forward

596
108,371
101,822

(449)

6,549

215Valuation difference on
available-for-sale securities

Total assets

170,771

Total net assets
Total liabilities and net assets

215
117,522
170,771

Statement of Income(From April 1, 2022, to March 31, 2023)(Million yen)
Item

AmountNet sales
Real estate lease revenue

66599

Net sales of directly managed businesses

1386

67986

Cost of sales
Cost of sales of directly managed businesses

276

Gross profit

67709
58459

Selling, general and administrative expenses
Operating profit

9250

Non-operating income
Interest income

346

Dividend income

198

Other non-operating income

76621Non-operating expenses
Foreign exchange losses

21

Other non-operating expenses

110

131
9740

Ordinary profit
Extraordinary income
Early cancellation fees received

31

Gain on reversal of provision for loss on business75

Other extraordinary income

20

127

Extraordinary losses
Loss on retirement of non-current assets

240

Removal expenses for non-current assets

472

Provision of allowance for doubtful accounts

122

Impairment loss

55

Other extraordinary losses

198957

Profit before income taxes
Income taxes - current

1418

Income taxes - deferred

1213

Profit

911

2632
6324

Notes to the Non-consolidated Financial Statements
1. Notes on Significant Accounting Policies
1. Valuation Standards and Methods for Assets(1) Valuation standards and methods for securities
Stocks of subsidiaries and affiliates
Stated at cost based on the moving average method.
Other securities•Securities other than shares, etc. without market priceStated at fair market value based on the market price, etc. at the end of the fiscal year (all valuationdifferences are directly charged or credited to net assets and the costs of securities sold are calculated•Shares, etc. without market priceStated at cost based on the moving average method.
(2) Valuation standards and methods for inventories
MerchandiseStated at cost based on the specific identification method (the balance sheet value is calculated by reducing
the book value based on declines in profitability).
2. Depreciation and Amortization Methods for Non-current Assets(1) Property, plant and equipment (excluding leased assets)
Depreciation is computed by the declining-balance method.
Useful lives and residual values are calculated using the same standards as those prescribed in theCorporation Tax Act.
(2) Intangible assets
Amortization is computed by the straight-line method.
Useful lives are calculated using the same standards as those prescribed in the Corporation Tax Act.
However, software (for internal use) is amortized using the straight-line method based on the period during
which it can be used internally (5 years).
(3) Leased assets
Leased assets related to finance lease transactions without transfer of ownership
The straight-line method is used with the lease period as the useful life and the residual value as zero.
(4) Long-term prepaid expenses
Amortization is principally computed by the declining-balance method.
The amortization period is based on the same standards as those prescribed in the Corporation Tax Act.
3. Standards for Recording Provisions(1) Allowance for doubtful accounts
To provide for losses on bad debts, an allowance for doubtful accounts is provided by recording estimatedunrecoverable amounts based on the historical bad debt ratio for general receivables and examination of thecollectability of individual receivables for specific receivables such as doubtful and distressed receivables.
(2) Provision for bonuses
To provide for the payment of bonuses to employees, a provision for bonuses is recorded based on theestimated amount of payment.

(3) Provision for sales promotion expenses
To provide for future expenditures related to the utilization of “ONE LUMINE Shopping Ticket,” theamount expected to be utilized in the future is recorded based on the historical utilization rate.
(4)

Provision for retirement benefits
1) Method of attribution of projected retirement benefits to period
In calculating retirement benefit obligations, the benefit formula standard is used to attribute the estimatedamount of retirement benefits to the period up to the end of the current fiscal year.
2) Amortization of actuarial gains and losses and prior service cost
Prior service cost is amortized on a straight-line basis over a fixed number of years (10) within the averageremaining service period of employees at the time of occurrence.
Actuarial gains and losses are amortized by the straight-line method over a fixed number of years (10) within
the average remaining service period of employees at the time of recognition in each fiscal year, andallocated proportionately from the fiscal year following the respective fiscal year of occurrence.

(5) Provision for loss on business of subsidiaries and associates
To provide for losses on the business of subsidiaries, an amount deemed necessary in consideration of suchfactors as the financial position of the subsidiaries is recorded.
4. Standards for Recording Revenues and Expenses
The Company engages in real estate leasing and directly managed businesses. Revenues from thesebusinesses are mainly recorded in accordance with contracts with customers, and transaction prices arecalculated based on the consideration of contracts with customers. However, in the case of businesses inwhich the Company conducts transactions as an agent, revenues are calculated using the net amountobtained by deducting the amount actually paid to other business operators that provide goods and services
from the consideration received from customers for the transaction price.
Revenues from real estate leasing are mainly from the management and operation of stores, etc. in the formof commercial station buildings and are recorded over the lease term in accordance with accounting
standards for lease transactions.
Revenues from the Company’s directly managed businesses are generated through sales of products andrestaurants, and the Company bears the performance obligation to deliver products and provide services tocustomers. This performance obligation is met at the time of delivery of goods and provision of services.
However, with respect to sales of products via the Internet, revenue is recognized at the time of productshipment based on Paragraph 98 of the Guidance on Accounting Standard for Revenue Recognition, because
the transactions are sales in Japan, and the period from the time of shipment to the time when control of theproduct is transferred to the customer is the ordinary period.

5. Standards for Translation of Assets and Liabilities Denominated in Foreign Currencies into Japanese Currency
Monetary claims and obligations denominated in foreign currencies are translated into Japanese yen at thespot exchange rate prevailing on the balance sheet date, and any translation differences are charged or
credited to income.

2. Notes to the Balance Sheet(1) Accumulated depreciation of property, plant and equipment

130,065 million yen(2) Future lease payments on non-cancelable operating lease transactions(As lessee)
Within one year
Over one year
Total2,250 million yen
14,920 million yen
17,170 million yen(3) Monetary claims against and obligations to subsidiaries and associates
Short-term monetary claims
Short-term monetary obligations
Long-term monetary claims
Allowance for doubtful accounts

702 million yen
625 million yen
520 million yen
449 million yen

3. Notes to Tax Effect Accounting
The main reasons for the occurrence of deferred tax assets are loss carried forward and overdepreciation. The main
reason for the occurrence of deferred tax liabilities is denial of non-current asset retirement expenses, etc.
The valuation allowance deducted from deferred tax assets is 640 million yen.
4. Notes on Transactions with Related Parties(1) Parent company and major corporate shareholders, etc.
(Million yen)
Type種類Name of
会社の名称
company

Parentcompany

東日本旅客鉄道㈱Railway

親会社

East Japan
Company

Percentage
議決権等
of votingの所有
rights, etc.
（被所held of (or有）割合by) theRelationship with the
Nature of the
関連当事者との関係 取引の内容
related party
transaction

Directly
被所有 Concurrent appointment
役員の兼任、駅ビル
ownsof officers, lease of land
95.1直接% of the
用地等の貸借forstationbuildings, etc.
95.1%
company

Payment of
土地・建物のlease
fees
forand賃land
借料の支払
buildings

Transaction
取引金額
amountItem
科目

Balance as ofMarch31,
期末残高
2023

Accounts

47

9,752 payable
未払金- other(2) Affiliated companies, etc.
(Million yen)Type

Name ofcompany

Subsidiaryof theparentcompany

Viewcard Co.,
Ltd.

Percentage ofRelationshipvoting rights, etc.
with theheld of (or by) therelated party
related party

Nature of thetransaction

Merchant
agreement

Transfer of credit
card receivables

151,563 accounts

Payment ofcommission feesSubcontracti for planning andng agreement production ofadvertising andsales promotions

2,505 payable -

None

Lease
agreements

Payment of lease
fees for buildings

Prepaid
expenses
5,923
Leaseholddeposits

None

Lease
agreements

Payment ofcommission feesfor managementof buildings

3,156 payable -Subsidiary
JR Eastof theMarketing &parent
Communications,company
Inc.
Subsidiaryof the
JR East Building
parentCo., Ltd.
company
Subsidiary
JR East Facilityof theManagement Co.,
parentLtd.
company

None

None

Transaction
amountItem

Balance asof March
31, 2023

Trade

6,906

receivable

Accounts316

other453
2,047

Accounts

347

otherTransaction conditions and policy for determining transaction conditions, etc.
(Note 1)The transfer of credit card receivables is determined after price negotiations, taking into consideration theprevailing market conditions.
(Note 2)Terms and conditions related to commission fees are determined after price negotiations, taking intoconsideration the prevailing market conditions.
(Note 3)Terms and conditions related to lease fees are determined after price negotiations, taking into consideration
the prevailing market conditions.

5. Notes to Per Share Information(1) Net assets per share(2) Profit per share

1,669.87 yen
89.86 yen