(E04118) Stock Price

Toyohashi Railroad is a regional railway operator that supports the transportation network in the Higashi-Mikawa region of Aichi Prefecture through rail and bus services. As the core company within a corporate group under Nagoya Railroad as its parent company, the company positions rail operations as its main business while developing diverse, community-focused services. Together with six consolidated subsidiaries, it operates a wide range of businesses based on transportation infrastructure.

The company's primary customers are local residents and businesses, generating transportation revenue from daily commuting and school travel demand as well as tourism and business users. The revenue structure is centered on transportation operations, supplemented by real estate rental income and related service businesses. Through collaboration with its parent company Nagoya Railroad, the company plays a role in a broader regional transportation network.

The business is organized around four operational segments. The transportation division provides comprehensive services including rail, bus, and taxi operations. The real estate division handles rental and sales operations in addition to cleaning services. The leisure and services division operates travel businesses, while the maintenance, repair, and construction division contributes to infrastructure maintenance both within and outside the group through construction and automotive repair services.

Toyohashi Railroad, as a public transportation provider in the East Mikawa region, has established three core management pillars: "Safety Enhancement," "Profitability Challenge," and "Organizational Reform and Human Development." Facing declining population and an aging society, the company aims to secure stable revenue through strengthened regional partnerships while working to enhance public transportation value and ridership. The company is building a sustainable business foundation while flexibly adapting to social change.

In transportation operations, safe service is the top priority, with concentrated investment in vehicle fleet renewal and improvements to station and bus stop facilities. As differentiation strategies, the company introduced the "manaca" IC card to bus operations in March and launched the "Go" ride-hailing app for taxi services in November—the first in the East Mikawa region. These digital initiatives prioritize customer convenience and secure competitive advantage over competitors.

As a key initiative for new market development, the company launched demonstration testing of the regional MaaS platform "Ikomai" in October. Working with relevant organizations, Toyohashi Railroad aims to begin full operations from fiscal year 2025 onward, addressing regional challenges through public transportation. In leisure and service operations, the company actively pursues new markets including corporate groups and educational travel to diversify revenue streams.

Regarding technological innovation, the company has strengthened its web reservation system through website renewal, achieving operational efficiency and labor savings. Through transportation safety management deployment, the company has built an accident prevention system and promotes technical safety improvements alongside enhanced employee safety training. Through these initiatives, Toyohashi Railroad aims for sustainable growth as a company trusted by the region.