Shinkansen networks and JR East

East Railway Company

1

Copyright 2012 East Japan Railway Company. All rights reserved 1 networks in Japan

Copyright 2012 East Japan Railway Company. All rights reserved 2 Railways in Japan

JR group

Railways JR Group in Japan No. of 207 7 Operators (*1) (*2) Operating (km) 27,314 20,000

No. of 210,557 129,374 Employees (*3) Passenger-km 385.5 242.3 billion billion Ton-km 22.5 22.3 billion billion (As of 2009.03.31)

*1: JR Group + other railways, light rail, monorail, etc. *2: 6 Passenger railways + 1 Freight railway *3: People engaged in railway business

Copyright 2012 East Japan Railway Company. All rights reserved 3 Current Shinkansen Network

Daily average No. of passengers: 930,000 (as of 2012.03.31) Tokaido and Sanyo Shinkansen: 568,000 Total Length: 2,620 km Tohoku and : 304,000 : 32,000 : 26,000 Akita Line (Upgraded Conventional line) JR East Shin- JR Central Yamagata Line 2016 (Upgraded Conventional line) Shin- JR West 2010 JR Kyushu Joetsu Shinkansen(270km) 1997 2002 Under Construction 1999 Hokuriku Shinkansen (117km) 1992 Planned line (593km)

Kanazawa 2015 1982 Sanyo Shinkansen (554km) 1982 Hakata 1997 1982 Shin- Omiya 1975 Okayama 1972 Nagoya 1964 Omiya 2011 1985 Shin- 2004 Tokaido Shinkansen (515km) Ueno Kyushu Shinkansen (127km) 1991 Tokyo 4 -Chuo Copyright 2012 East Japan Railway Company. All rights reserved 4 Characteristics of Shinkansen

High-speed Max. speed of 300 km/h operation (320km/h from FY 2013)

High-density 15 trains per hour mass transport Max. of 1,600 passengers

Safety No. of passenger fatalities: 0 since the start of operations Train delay time: Less than 30 sec. for Reliability average of all trains per year Eco-friendliness

Less Co2 emissions

Copyright 2012 East Japan Railway Company. All rights reserved 5 The Shinkansen Share versus other transport modes

Source: The Ministry of Land, Infrastructure, Transport, and Tourism, Research of the No. of passengers by distance and by transport mode 100% 4 19 80% 56 54 22 Airplane 60% 75 78 Ship 88 Automobile 40% Bus 22 57 JR 20% 40 20 22 7 0% 9 5

Copyright 2012 East Japan Railway Company. All rights reserved 6 Future Development Plans for the Shinkansen

In operation: 2,620km Sapporo Shinkansen Under construction: 434km completion planned at the end of fiscal 2015 Shin-Hakodate Construction planned: 533km Shin-Aomori

Hokuriku Shinkansen completion planned at the end of fiscal 2014 Kyushu Shinkansen (Nishi-KyushuPlanned route) line completion planned in fiscal 2017 Nagano Hakata Shin-Osaka

Okayama Nagoya Tokyo Nagasaki

(as of 2012.03.31) 7

Copyright 2012 East Japan Railway Company. All rights reserved 7 Separation of Shinkansen Line Construction and Operation ○ Separation of construction and operation

JR (Operation of Shinkansen)

Payment Lease of facilities

JRTT* (Construction and ownership)

*JRTT: The Japan Railway Construction, Transport and Technology Agency ○ Subsidy (Budget for 2012 fiscal year: 2.67 billion euro) ※ €1=\100 Revenue from the sale of Shinkansen Public works expenditure Local government lines* * to JR companies in 1991 in national budget 890 million euro 1.07 billion euro 706 million euro

National government Local government 17.8 billion euro 890 million euro 2 1 ** Tokaido Shinkansen, Sanyo Shinkansen, Joetsu Shinkansen, Tohoku Shinkansen (Tokyo-Morioka) Copyright 2012 East Japan Railway Company. All rights reserved 8 Shinkansen networks in JR East

201019971999198719922002~ Shin-Aomori Hachinohe

Akita Morioka

Shinjo

Yamagata Sendai Niigata

Kanazawa Nagano Takasaki

Copyright 2012 East Japan Railway Company. All rights reserved 9 Three types of Shinkansen

275km/h 320km/h

240km/h 240km/h

275km/h 320km/h

Copyright 2012 East Japan Railway Company. All rights reserved 10 About JR East

Copyright 2012 East Japan Railway Company. All rights reserved 11 Company Profile of JR East

S: Shinkansen C: Conventional lines *( ): stations also served by C (as of 2012.03.31) Length of S: 1,134.7 (15%) 7,512.6 operating km (km) C: 6,377.9 (85%) S: 37 (28*) No. of stations 1,689 C: 1,680 No. of trains S: 327 (2%) 12,757 per day C: 12,430 (98%) Passenger-km S: 18.4 (15%) 125.1 (Billion-km) C: 106.7 (85%)

Copyright 2012 East Japan Railway Company. All rights reserved 12 Schemes of JNR Reforms

Copyright 2012 East Japan Railway Company. All rights reserved 13 Patterns of Breakup and Privatization

Factors for judgment

① Community-based multilateral management of major private railways as models ② Full consideration to regional situations of passengers’ mobility and train operations ③ By clarifying proper management size and responsibilities, fermentation of competitive consciousness

Separation methods to accommodate individual characteristics of passenger and freight transports are applied.

Passenger railways Freight railway

Separation of train operation and Territorial division infrastructure management Management to accommodate regional Due consideration to characteristics of situation and coordination of infrastructure freight transport, separation from and train operation passenger railways

Copyright 2012 East Japan Railway Company. All rights reserved 14 JR East Revenue Structure ※ €1=\100 2011.4 - 2012.3 Shinkansen Non Rail Business Other area 5% 33% 27% 67% 68% Transportation Tokyo area Conventional Lines JR EAST Group Total € 25 billion JR EAST Group Rail Revenues Operating income € 3.6 billion € 16 billion Copyright 2012 East Japan Railway Company. All rights reserved 15 Copyright 2012 East Japan Railway Company. All rights reserved 16