Balance Sheet(As of March 31, 2022)
Item

AmountItem(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
Other

75,162
1,427
18,173508
61
52,385
1,583

916
106

(Liabilities)
Current liabilities
Accounts payable - otherAccrued expenses
Accrued consumption taxes
Income taxes payable
Unearned revenue(Million yen)Amount28,185
5,518
97
2,015
667
269

Deposits received from customers
Current portion of guarantee
deposits and leasehold deposits
received
Provision for bonuses
Provision for sales promotion
expenses
Other

18,855

20,459

159
282
49
270

Non-current assets
Property, plant and equipment
Buildings

84,551
46,34842,565Structures
Machinery and equipment

409
200

Furniture and fixtures
Land
Construction in progress

1,187
1,545
438

Non-current liabilities
Guarantee deposits and leasehold
deposits received
Provision for retirement benefits
Provision for loss on business of
subsidiaries and associates
Asset retirement obligations
Other

899

Total liabilities

48,645(Net assets)
Shareholders’ equity
Share capital

110,982
2,375

Capital surplus
Legal capital surplus

5,964
5,964

Intangible assets
Software
OtherInvestments 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
Allowance for doubtful accounts

864
35
37,303
768
1,942
198
4,504
24,1396,043
31(326)

Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought
forwardValuation and translation
adjustments
Valuation difference on available- forsale securities

Total assets

159,714

17,117
1,703
75
1,473
90

102,642596
102,046
101,822224

86
86

Total net assets

111,068

Total liabilities and net assets

159,714

Statement of Income(From April 1, 2021 to March 31, 2022)(Million yen)Item
Net sales
Real estate lease revenue
Net sales of directly managed businesses

Amount57,667
1,376

Cost of sales
Cost of sales of directly managed businesses
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidies for employment
Subsidy for cooperation in preventing the spread ofCOVID-19
Other non-operating income
Non-operating expenses
Foreign exchange losses
Other non-operating expenses

257
58,78656,265
2,521
315
6178
207

708

15103

118
3,110

Ordinary profit
Extraordinary income
Gain on receipt of donated assets
Early cancellation fees received
Gain on reversal of provision for loss on business
Other extraordinary income

26174635

Extraordinary losses
Loss on retirement of non-current assets
Removal expenses for non-current assetsProvision of allowance for doubtful accounts
Impairment loss
Other extraordinary losses

143349152
112
22

Profit before income taxes
Income taxes - current
Income taxes - deferred
Profit59,044

125

780
2,455

566
243

810
1,645

Notes to the Non-consolidated Financial Statements
1Notes 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 valuation differences are directly charged or credited to net assets and the costs ofsecurities sold are calculated using the moving average method).
• 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
the Corporation 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 TaxAct.
However, software (for internal use) is amortized using the straight-line method based on theperiod 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
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
estimated unrecoverable amounts based on the historical bad debt ratio for general receivables
and examination 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 basedon 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 historicalutilization 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 toattribute the estimated amount of retirement benefits to the period up to the end of thecurrent 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 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 numberof years (10) within the average remaining service period of employees at the time ofrecognition in 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 inconsideration of such factors 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
are calculated based on the consideration of contracts with customers. However, in the case ofbusinesses in which the Company conducts transactions as an agent, revenues are calculated using
the net amount obtained by deducting the amount actually paid to other business operators thatprovide 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 form of commercial station buildings and are recorded over the lease term in accordance withaccounting standards for lease transactions.
Revenues from the Company’s directly managed businesses are generated through sales of products
and restaurants, and the Company bears the performance obligation to deliver products and provide
services to customers. This performance obligation is met at the time of delivery of goods andprovision of services. However, with respect to sales of products via the Internet, revenue isrecognized at the time of product shipment based on Paragraph 98 of the Guidance on AccountingStandard for Revenue Recognition, because the transactions are sales in Japan, and the period fromthe time of shipment to the time when control of the product is transferred to the customer is theordinary period.

5.

2Standards 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 yenat the spot exchange rate prevailing on the balance sheet date, and any translation differences arecharged or credited to income.
Notes to the Balance Sheet(1) Accumulated depreciation of property, plant and equipment

125,896 million yen(2) Future lease payments on non-cancelable operating lease transactions(As lessee)
Within one year

2,282 million yen

Over one year

17,169 million yen

Total

19,452 million yen(3) Monetary claims against and obligations to subsidiaries and associates
Short-term monetary claims
598 million yen

3

Short-term monetary obligations

566 million yen

Long-term monetary claims

326 million yenAllowance for doubtful accounts

326 million yen

Notes to Tax Effect Accounting
The main reasons for the occurrence of deferred tax assets are loss carried forward andoverdepreciation. 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 625 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

Percentageof voting
rights, etc.
held of (orby) therelated party
Directlyowns 95.1%of theCompany

Relationshipwith therelated party

Nature ofthetransaction

Transaction
amountConcurrent
appointment
of officers,
lease of landfor stationbuildings,
etc.

Payment oflease fees
for land andbuildings

9,723

Item

Accounts
payable otherBalance asof March31, 2022

50

Transaction 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 theprevailing market conditions.

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

Name ofcompany

Percentage
of votingrights, etc.
held of (orby) the
related party

Relationshipwith the related
party

Nature ofthetransaction

Transaction
amountItem

Subsidiaryof theparent
company

Viewcard Co.,
Ltd.

None

Merchant
agreement

Transfer ofcredit card
receivables

129,751

Trade
accounts
receivable

5,788

None

Subcontracting
agreement

Payment ofcommission
fees forplanning
andproduction
ofadvertisingand sales
promotions

2,372

Accounts
payable other394

None

Lease
agreements

Payment oflease feesforbuildings

5,879Prepaid
expenses
Leaseholddeposits

453
2,047

Leaseagreements

Payment ofcommission
fees formanagemen
t ofbuildings

3,138

Accounts
payable other277

Subsidiaryof theparentcompany

JR EastMarketing &Communicati
ons, Inc.

Subsidiaryof theparentcompany

JR EastBuilding Co.,Ltd.

Subsidiaryof theparentcompany

JR EastFacility
ManagementCo., Ltd.

NoneBalance
as ofMarch 31,2022

Transaction conditions and policy for determining transaction conditions, etc.
(Note 1)
(Note 2)
(Note 3)

5

The transfer of credit card receivables is determined after price negotiations, taking intoconsideration the prevailing market conditions.
Terms and conditions related to commission fees are determined after price negotiations, taking
into consideration the prevailing market conditions.
Terms and conditions related to lease fees are determined after price negotiations, taking into
consideration the prevailing market conditions.

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

1,578.18 yen
23.38 yen