(E04113) Stock Price

Shizuoka Railway is a comprehensive business group centered in Shizuoka Prefecture with deep community roots. The company operates a diverse range of lifestyle-related services anchored by its core railway business, including transportation services such as buses and taxis, retail operations, automobile sales, and real estate development. The group operates 24 subsidiaries and 2 affiliated companies, functioning as a comprehensive infrastructure enterprise that supports the region's daily life.

The company's primary customers are residents and businesses throughout Shizuoka Prefecture. Its revenue structure is closely tied to the community's daily needs, spanning commuting and shopping to housing. Key revenue sources include passenger fares from commuters, students, and tourists in the transportation business; sales of food and daily necessities in the distribution business; and sales and maintenance services for Toyota vehicles in the automobile sales business. This locally rooted business approach has established a stable revenue foundation.

The company operates across six major business segments: transportation (railways, buses, taxis, cable cars, and freight services) and distribution (supermarket operations). In automobile sales, it provides comprehensive services from Toyota vehicle sales through leasing and maintenance. The real estate business handles sales, rentals, property management, and shopping center operations. Additionally, the leisure and services segment operates hotels and golf courses, while the construction business handles building and demolition projects, creating a diversified business portfolio that addresses the region's varied needs.

Shizuoka Railway is currently developing the "New Medium-Term Management Plan 2028," a three-year plan beginning in fiscal 2026, while aiming to complete its current "Medium-Term Management Plan 2025" by fiscal 2025. The company seeks sustainable growth responsive to changing times by reconstructing its approach to transportation services beyond existing frameworks. The new plan positions "Mobility Transformation Promotion" and the "Higashi-Shizuoka Urban Development Project" as key priorities, with the group pursuing an integrated growth strategy.

As a priority investment area, the company is accelerating efforts to realize mobility transformation. It has established the "Shizutetsu Group Next-Generation Transportation Promotion Committee" to effectively redesign the group's transportation resources and build sustainable transportation service business models. To address supply-demand mismatches and severe labor shortages, the company is advancing full-scale consideration of new transportation services utilizing ride-sharing and autonomous driving, pursuing differentiation strategies that transcend the traditional transportation operator model.

In new market development, active participation in Shizuoka City's Higashi-Shizuoka urban development initiative is the top priority. The company has launched the "Higashi-Shizuoka Urban Development Project Team" to realize urban development leveraging strong connections with the group's business areas. It is advancing specific development plans around Naganuma Station and seeking to create new revenue opportunities through synergies between real estate development and transportation operations.

In technology innovation, the railway business will conduct a complete overhaul of station equipment, discontinuing magnetic tickets and introducing a QR code-based ticketing system. This will reduce maintenance and electricity costs while improving convenience through passenger flow data collection and analysis. The bus business is considering articulated bus deployment, enabling one driver to transport approximately 1.5 times more passengers, simultaneously addressing the urgent driver shortage and improving transportation efficiency.