Developing Life-Style Businesses Initiated by JR East

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Developing Life-Style Businesses Initiated by JR East Developing life-style businesses ^^' IF* initiated by JR East Mitsuo Higashi Director of the International Department East Japan Railway Company Outline of JR East JR East is the largest railway company in JAPAN Network: 7,512.6 km No. of Passengers: 17 million /day No. of Trains: 12,732 /day No. of Stations: 1689 Revenues: 2537.4 billion yen ($3ZMton*) V-O okyo Metropolitan area "Revenues are from FY ended March 31,2011/ 1dollar=80yen Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Regional (3841.3km) (Tokyo Metropolitan Area) (Shinkansen) (2536.2 km) (1134.7km) Consolidated Financial Statements ofJRE Group Other services (8.1%) \ Shopping centers & Transportation (67.9%) office buildings evenue (8.8%) 2537.4 billions yen Station space (31.7 billion dollars) utilization (14.1%) ..: ..: ....:,- '• -... ... (Billions of Yen) (Year ended March 31,2011) Operating Revenue Operating Income Total 2537.4 344.8 Transportation 1721.9 231.3 Station space utilization 385.9 33.3 Shopping centers & office buildings 223.3 69.3 Other services 206.2 13.5 Copyright© 2012 East Japan Railway Company ALL Rights Reserved. The case of Station Management Many cases in the world JR East I Who owns stations? Station management Company JR East I Who operates stations? Station management Company JR East I Range of responsibility? Trains Lounge JR East Power/Water Utilities Energy Company Lounge Platform Passenger Information Building Cleaning/Maintenance Announcements I Waiting Room Disabled Persons Facilities Toilets m. Advertisements f • Shops Station Management Shopping Center JR East, subsidiary, tenant Hotel JR East, subsidiary I How is the Station considered? "Airport on Rail" "Rail & Community Center" Basic Principle of Management JR East has been, and will continue to be, committed to the thorough pursuit of "safety" and "customer satisfaction" as the most important management issues. • Railway company which operates urban, high speed and regional railways. • 17 million passengers/ day, 12,732 trains / day, 712,400 train-km / day • Average delay < 1 minute including all kinds of delays, even those due to snow or typhoons. (High speed trains: 0.3 minutes, Conventional trains: 1.1 minutes) Non-transportation • Developing based on reliability of the railway business • Various businesses in connection with customers' daily life, mainly at the stations • Generating 30% of consolidated income 6 Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Comparison with other JR companies and other railway operators JR East JR West 32% /^ N 68% 78% V__^6 Tokyu Odakyu Electric Keio Corporation Railway Corporation 15% ,30% rr 85% 70%" 70% • D Transportation I 1 Non-transportation Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Large-scale station development projects Tachikawa station FY2009 Revenue 79.3 billon JPY Lifestyle services Rail services 64.1 billion JPY 15.1 billion JPY 81% 19% Granduo Tachikawa Hotel Mets Tachikawa April 1999 October 2008 17 billion JPY/year 0.3 billion JPY/year Lumine Tachikawa October 1982 39 billion JPY/year Ecute Tachikawa Four facilities October 2007 each with a different concept 5.8 billion JPY/year meeting customer demand from every angle 8 Life-Style Business Diversification Shopping centers and Sports office services and Leisure business Station space Advertising utilization and (Retail business publishing and restaurants) Trading and Real estate distribution management service Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Station Renaissance Development Since New Frontier 21, we have developed Station Renaissance, a business strategy that aims to achieve the maximum potential of our greatest management resources, our stations In 2010 Group Vision, the Station Renaissance project will be further enhanced, not only through development projects but also by a review of existing facilities. • Station Renaissance Station Renaissance is a project that aims to construct stations fit for the 21st century. The goal is not only to upgrade the functions of stations as transport nodes, but also to enhance their appeal and maximize revenues through improvements in comfort and the strengthening of their functions as service centers responding to diversifying customer expectations •Review of station facilities •Commercial space creation by constructed areas, etc. •Development and improvement of barrier-free environments •Installation of information provision signage, etc. Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Station Development Projects Development of east exit of Sendal Station Utsunomiya Station hotel ecute Akabane (autumn 2011) development (spring 2012) Saitama New City Building I Development of south exit of OtsukaStation ecute Kashiwa (TBD) JR Minami-shinjuku Building (summer 2012) Building Development at the new south exit of Shlnjuku Station (spring 2016) Development of the Transport Museum site (2012) Development of Funabashi Station Development of west exit of Higashi-nakano station Development of Marunouchi station building preservation and restoration (summer 2012) Shifauya Station (2012), Tokyo Station Hotel (autumn 2012), Gran Tokyo Reconstruction of Tsurumi | North Tower Phase II (Aug.2012), Station building (FY2013) Central section of GranRoof, etc. (autumn 2013) Development of Atami Station Development of Chigasaki Station Chiba Station improvement (summer 2016) Development of Chiba Station building (spring Development of Yokohama Station Development of 2017, spring 2018) west exit building and east exit Development of Kawasaki Station Sakuragicho Station Copyright© 2012 East Japan Railway Company ALL Rights Reserved. •^Includes projects under consideration Utilization of former rail offices for Shopping area UENO STATION To improve both its railway functions and its commercial functions 12 Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Inside station development for passengers in transit to integrate shopping zones with railway functions Ecute Omiya redevelopment project Integration of railway and commercial space 13 Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Create asset by review of railway business SHINAGAWft tiki A f*~ A \ AAA A ROLLIN!%/%! t Ikl^G^ STOCl*"T*/%/""IKA DE.P0l%ri*TSdP\1T Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Collaboration with Road transport •V \ Current status of the construction Image picture of the on route 20 overpass Shinjuku transportation hub after the completion 15 Copyright© 2012 East Japan Railway Company ALL Rights Reserved. Special permission by local gov. for Floor Area Ratio TOKYO STATION About 80,000nrf floor area 16 Tokyo Station City Sapia Tower Gran Tokyo North Tower 2007.3 Jl^sfWBzsj^T* '^' completed Pedestrian deck and station facilities : Conference ' *? I 2007.10 completed (phase I) Gran Tokyo South Tower 2007.1 OOPEN B1 Floor in Tokyo Station 2007.10 completed Tokyo Station City - Marunouchi Side Tokyo Station Hotel (150 rooms): Opening scheduled for FY2012 A major station hotel located in Tokyo Station's prestigious and historic cultural property Lobby entrance Lobby/lounge Twin room on the Suite Imperial Palace side Thank you for your kind attention ! appendix Ratio of railway structures in JR East Conventional line 6,450km Shinkansen 1,050km 4% 2% 6% 35% Total 7,500km 5% D Embankment • Tunnel • Viaduct • Bridge.
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