Balance Sheet(As of March 31, 2021)(Million yen)
Item(Assets)
Current assets
Cash and deposits
Trade accounts receivable
Accounts receivable
Merchandise
Short-term loans receivable
Current portion of long-term loans
receivable
Prepaid expenses

Amount74,998
1,253
21,855626
118
48,677
1,183
989

Other292

Non-current assets
Property, plant and equipment
Buildings
Structures

88,05349,08745,030Machinery and equipment
Furniture and fixtures

243

Land
Leased assets
Construction in progress

446

1,550
1,545
2268

(Liabilities)
Current liabilities
Accounts payable - otherAccrued expenses
Accrued consumption taxes
Income taxes payable
Unearned revenue
Deposits received from customers
Current portion of guarantee
deposits and leasehold deposits
received
Provision for bonuses
Provision for sales promotion
expenses
Other
Non-current liabilities
Guarantee deposits and leasehold
deposits received
Provision for retirement benefits
Provision for loss on business ofsubsidiaries and associates
Asset retirement obligations
Other
Total liabilities

33,390
6,905
141
21
1,507
259
23,901
119
406
36
91
20,28517,026
1,575
111
1,472
99
53,675665
629
35(Net assets)
Shareholders' equity
Share capital

109,3372,375

Investments and other assets
Investment securities
Shares of subsidiaries andassociates
Long-term prepaid expenses
Guarantee deposits and leasehold
deposits
Long-term loans receivable
Deferred tax assets
Other

38,300720

Capital surplus
Legal capital surplus

5,964
5,964

Retained earnings
Legal retained earnings

100,997

Allowance for doubtful accounts(175)

Intangible assets
Software
Other

1,916
499
4,578
24,442
6,288
31

Other retained earnings
General reserveRetained earnings brought
forwardValuation and translation
adjustments
Valuation difference on availablefor-sale securities

Total assets

163,051596
100,401
101,822(1,420)38
38

Total net assets

109,375

Total liabilities and net assets

163,051

Statement of Income(From April 1, 2020 to March 31, 2021)(Million yen)Item
Net sales
Real estate lease revenue
Net sales of directly managed businesses

Amount45,153
7,445

52,609

Cost of sales
Cost of sales of directly managed businesses

5,834

Gross profit
Selling, general and administrative expenses

46,77456,361

Operating loss
Non-operating income
Interest income
Dividend income
Subsidies for employment
Other non-operating income(9,586)
294
6192
107

600

Non-operating expenses
Foreign exchange losses
Other non-operating expenses

6109

116
(9,102)

Ordinary loss
Extraordinary income
Early cancellation fees received
Other extraordinary income

256

Extraordinary losses
Loss on retirement of non-current assets
Removal expenses for non-current assets
Loss on valuation of shares of subsidiaries and associates
Provision for loss on business of subsidiaries and associates
Provision of allowance for doubtful accounts
Impairment loss
Other extraordinary losses

336
662
364
63
174
197
218

Loss before income taxes
Income taxes - current
Income taxes - deferred
Loss

31

2,017
(11,087)27(3,214)(3,186)(7,900)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 with a market value
Stated at fair market value based on the market price, etc. at the end of the fiscal year (allvaluation differences are directly charged or credited to net assets and the costs ofsecurities sold are calculated using the moving average method).
• Securities without a market value
Stated 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 aszero.
(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 TaxAct.

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 recordingestimated unrecoverable amounts based on the historical bad debt ratio for general receivables andexamination of the collectibility 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
the estimated amount of payment.
(3) Provision for sales promotion expenses
To provide for future expenditures related to the utilization of "ONE LUMINE Shopping Ticket,"the amount 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 attributethe estimated amount of retirement benefits to the period up to the end of the current fiscalyear.

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 average remaining service period of employees at the time of occurrence.
Actuarial gains and losses are amortized by the straight-line method over a fixed number ofyears (10) within the average remaining service period of employees at the time of recognitionin each fiscal year, and allocated 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 considerationof such factors as the financial position of the subsidiaries is recorded.
4.

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
the spot exchange rate prevailing on the balance sheet date, and any translation differences are charged
or credited to income.

5.

Other Important Matters that Serve as the Basis for Preparation of Financial Statements
Consumption taxes are accounted for by the tax-exclusion method.

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

121,148 million yen(2) Future lease payments on non-cancelable operating lease transactions(As lessee)
Within one year
Over one year

2,274 million yen
19,440 million yen

Total

21,714 million yen(3) Monetary claims against and obligations to subsidiaries and associates
Short-term monetary claims
1,238 million yen
Short-term monetary obligations
629 million yen
Long-term monetary claims
176 million yen
Allowance for doubtful accounts
174 million yen
3Notes 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 590 million yen.

4Notes on Transactions with Related Parties(1) Parent company and major corporate shareholders, etc.
(Million yen)

Type

Parentcompany

Name ofcompany

East Japan
RailwayCompany

Percentage ofvoting rights,
etc. held of(or by) the
related party

Relationshipwith therelated party

Nature of thetransaction

Transactionamount

Directly owns
95.1% of theCompany

Concurrentappointmentof officers,
lease of landfor stationbuildings, etc.

Payment oflease fees forland andbuildings

9,701

Item

Accounts
payable otherBalance
as ofMarch31, 2021

5Transaction conditions and policy for determining transaction conditions, etc.
(Note 1) Lease fees and other terms and conditions are determined after price negotiations, taking into consideration
the prevailing market conditions.
(Note 2) The transaction amount does not include consumption taxes. The balance as of March 31, 2021 includes
consumption taxes.

(2) Affiliated companies, etc.
(Million yen)Type

Name ofcompany

Subsidiaryof theparentcompany

ViewcardCo., Ltd.

Subsidiaryof theparentcompany

JR EastMarketing &Communicati
ons, Inc.

Subsidiaryof theparentcompany

JR EastBuilding Co.,Ltd.

Subsidiaryof theparentcompany

JR EastFacility
ManagementCo.,Ltd.

Percentage ofvoting rights,etc. held of(or by) therelated party

Relationshipwith the related
party

Nature ofthetransaction

None

Merchant
agreement

None

None

None

Transaction
amountItem

Balance
as ofMarch31, 2021

Transfer ofcredit card
receivables

113,572

Tradeaccounts
receivable11,493

Subcontracting
agreement

Payment ofcommission
fees forplanning
andproduction
ofadvertisingand sales
promotions

2,903

Accounts
payable other

429

Lease
agreements

Payment oflease fees

453

4,419

Prepaid
expenses
Leaseholddeposits

2,042

Lease
agreements

Payment ofcommission
fees formanagement ofbuildings

3,092

Accounts
payable other274

Transaction 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 into
consideration 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.
(Note 4) Among the amounts shown above, consumption taxes are not included in transaction amounts excludingtransfers of credit card receivables.
In addition, in the balances as of March 31, 2021, trade accounts receivable, accounts payable - other, andprepaid expenses include consumption taxes.

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

1,554.12 yen
112.26 yen