JR East Group Sustainability Report 2018 JR East Group Sustainability Report 2018 105

Management Information

Businesses Outline of the JR East Group (as of Transportation Business Distributions and Services Businesses Customers and Counterparty companies 〈Operating Revenues〉〈Operating Income〉

September, 2018) Railway business, bus business, cleaning and maintenance Retail business, restaurant business, advertising agency （billion yen） Non-consolidated Consolidated （billion yen） Non-consolidated Consolidated business, rolling stock manufacturing business Our company and our affiliated companies are 30,000 5,000 Major subsidiaries with consolidated accounts Major subsidiaries with consolidated accounts engaged in transportation business, distribution and Tokyo Monorail Co., Ltd./JR Bus Kanto Co., Ltd./JR East JR East Retail Net Co., Ltd. ,/Nippon services business, real estate and hotel business, and Environment Access Co., Ltd./JR East Facility Management Restaurant Enterprise Co., Ltd./East Japan 26,71826,71826,718 27,02927,02927,029 27,56127,56127,561 28,67128,67128,671 28,80828,80828,808 29,50129,50129,501 4,000 Co.,Ltd./Japan Transport Engineering Company/JR East Rail Marketing & Communications, Inc. other businesses. In each business our company’s 20,000 Car Technology & Maintenance Co., Ltd. 3,975 4,067 4,275 4,878 4,663 4,812 position in relation to each of our affiliated companies 19,10819,10819,108 19,32519,32519,325 19,66019,66019,660 20,57320,57320,573 20,68820,68820,688 20,93220,93220,932 3,000 is described below: Real estate and Hotel Business Others Management of shopping centers, oﬃce building leases 3,228 3,278 3,526 4,099 3,886 3,951 Credit card business such as IT ・Suica, information 2,000 and hotel business processing business, etc. 10,000 ■Transportation Business Major subsidiaries with consolidated accounts Major subsidiaries with consolidated accounts In addition to passenger transportation business LUMINE Co., Ltd./Atre Co., Ltd./JR East Urban Viewcard Co., Ltd./JR East Information 1,000 centered around railway operation, we provide travel Development Corporation,/JR East Building Systems Company/JR East Mechatronics Co., Co., Ltd. ,/Nippon Hotel Co., Ltd./Sendai Ltd. services, cleaning and maintenance services, station Terminal Building Co., Ltd. 0 0 operation services, facilities maintenance services and '13 '14 '15 '16 '17 '18 （fiscal） '13 '14 '15 '16 '17 '18 （fiscal） rolling stock manufacturing and maintenance work. In relation to the supply chain, it can be divided into 〈Net Income（Non-consolidated） and Profit ■Distribution and Services Business 〈Ordinary Income〉 two parts, the railway business and non-railway attributable to owners of parent（ Consolidated）〉 We are providing life services business, such as retail businesses. and restaurant business, wholesale business, truck Non-consolidated Consolidated For the railway business, JR East generates electricity （billion yen） Non-consolidated Consolidated （billion yen） transportation business and advertising agency. 5,000 3,000 at its own power stations or directly purchases ■Real estate・Hotel Business electricity from electrical companies. Electricity is 2,500 4,000 We are providing life services business, such as provided to trains through substations and overhead shopping center operations, leases and rentals of contact lines. Additionally, we operate railways and 2,000 office buildings, and hotel operations. 3,000 offer transport services to our customers through 1,500 ■Others the provision of continuous comprehensive services, 2,000 3,174 3,3253,3253,325 3,6193,6193,619 4,289 4,123 4,399 1,000 while also maintaining station staff members, 2,4302,4302,430 2,6392,6392,639 3,0153,0153,015 3,594 3,416 3,5893,5893,589 In addition, we are providing credit card business such 1,7531,7531,753 1,9991,9991,999 1,8031,8031,803 2,4532,4532,453 2,7792,7792,779 2,8892,8892,889 1,000 as IT・Suica, and information processing business. conductors and other various facilities. 500 1,3881,3881,388 1,6981,6981,698 1,5711,5711,571 2,0902,0902,090 2,4332,4332,433 2,4702,4702,470 With regard to non-railway businesses, while 0 0 pursuing synergetic effects with the railway business '13 '14 '15 '16 '17 '18 （fiscal） '13 '14 '15 '16 '17 '18 （fiscal） Following is a schematic of JR East businesses itself, each business operates its own specific supply chain, as it provides various services to customers.

Revenues from Passenger Tickets

OtherOther thanthan commutercommuter passespasses ShinkansenShinkansen lineslines （billion yen） CommuterCommuter passespasses （billion yen） ConventionalConventional lineslines Businesses of the JR East Group (as of September 1, 2018) （billion yen） 18,36618,366 （billion yen） 18,366 20,000 18,04918,049 18,16218,162 20,000 18,04918,049 18,16218,162 18,366 20,000 17, 2 59 （100）（100） 20,000 17, 2 59 16,81416,814 16,96416,964 17, 2 59 （100）（100）（100）（100） 16,81416,814 16,96416,964 17, 2 59 （100）（100）（100）（100）（100）（100） 18,00018,000 （100）（100）（100）（100）（100）（100） 18,00018,000 （100）（100）（100）（100）（100） ■ Transportation services ■ Information, financial, and personnel services （100） 16,00016,000 4,9444,944 4,9844,984 5,0305,030 16,00016,000 JR Bus Kanto Co., Ltd. / JR Bus Tohoku Co., Ltd. / Tokyo Monorail Co., Ltd. JR East Japan Information Systems Company / JR East Net Station Co., Ltd. / JR 4,8734,873 4,8074,807 4,9024,902 （27）（27） 14,00014,000 （27）（27）（27）（27） 14,00014,000 East Management Service Co., Ltd. / JR East Personnel Service Co., Ltd. / JR East （29）（29）（28）（28）（28）（28） ■ Shopping center operations 12,000 12,000 12,267 12,318 Green Partners Co.,Ltd. 12,000 12,000 11,11, 892 892 12,04612,046 12,267 12,318 Tetsudo Kaikan Co., Ltd. / atre Co., Ltd. / LUMINE Co., Ltd. / Yokohama 11,11, 894 894 （68）（68）（68）（68） 12,48512,485 ■ Credit card business 10,00010,000 10,00010,000 （70）（70）（70）（70） Station Building Co., Ltd. / Shonan Station Building Co.,Ltd. / JR Chuo （71）（71）（68）（68） Line Mall Co., Ltd. / JR East Department Store Co., Ltd. / JR Tokyo West Viewcard Co., Ltd. 8,0008,000 8,0008,000 Development Co., Ltd. / Kinshicho Station Building Co., Ltd. / Chiba Station Building 11,94111,941 12,15612,156 12,35612,356 13,10413,104 13,17813,178 13,33613,336 ■ Advertising and publishing 6,0006,000 6,0006,000 Co., Ltd. / JR East Aomori Business-Development Company Co., Ltd./ Tokky Co., （71）（71）（72）（72）（72）（72）（73）（73）（73）（73）（73）（73） 4,0004,000 4,0004,000 5,7825,782 5,8435,843 5,8815,881 Ltd. / Station Building MIDORI Co., Ltd. East Japan Marketing & Communications, Inc. / JR East Media Co., 4,9204,920 5,0715,071 5,2125,212 Ltd. / The Orangepage, Inc. 2,0002,000 2,0002,000 （32）（32）（32）（32）（32）（32） ■ Office operations （29）（29）（30）（30）（30）（30） ■ Cleaning and linen supply services 00 00 JR East Building Co., Ltd. '13'13 '14'14 '15'15 '16'16 '17'17 '18'18（fiscal）（fiscal） '13'13 '14'14 '15'15 '16'16 '17'17 '18'18（fiscal）（fiscal） JR East TESSEI Co., Ltd. / JR East Transportation Services Co., Ltd. / East Japan Eco ■ Hotel operations (( )) showsshows thethe percentpercent ofof thethe total.total. (( )) showsshows thethe percentpercent ofof thethe total.total. Access Co., Ltd. / JR East Station Service Co., Ltd. /JR Takasaki Railway Services Nippon Hotel Co., Ltd. / Sendai Terminal Building Co., Ltd. / Morioka Terminal Co., Ltd. / JR Mito Railway Services Co., Ltd. / JR Chiba Railway Services Co., Ltd. / Building Co., Ltd. / Akita Station Building Co., Ltd. JR Technoservice Sendai Co., Ltd. / Morioka Railway Servicing Co., Ltd. / JR Akita Number of Passengers Railway Services Co., Ltd. / JR Niigata Railway Services Co., Ltd. / JR Nagano Railway ■ Retail shop and restaurant businesses OtherOther thanthan commutercommuter passespasses ShinkansenShinkansen lineslines Services Co., Ltd. / JR Higashinihon Linen Co., Ltd. (MIllions)(MIllions) CommuterCommuter passespasses 6,488 (MIllions)(MIllions) ConventionalConventional lineslines 7,000 6,3646,364 6,4116,411 6,488 7,000 JR East Retail Net Co., Ltd. / Nippon Restaurant Enterprise Co., Ltd. / 7,000 6,1346,134 6,2466,246 6,2186,218 7,000 ■ Construction consulting and maintenance services （100）（100）（100）（100）（100）（100） 6,3646,364 6,4116,411 6,4886,488 JR East Food Business Co., Ltd. / JR East Water Business Co., Ltd. / Kinokuniya Co., （100）（100）（100）（100）（100）（100） 6,1346,134 6,2466,246 6,2186,218 Ltd. / JR East Tohoku Sogo Service Co., Ltd. JR East Consultants Company / JR East Design Corporation / JR East Facility 6,0006,000 6,0006,000 Management Co., Ltd. / JR EAST MECHATRONICS Co., Ltd. / Union Construction ■ Trading and logistics businesses Co., Ltd. / Japan Railway Track Technology Consultants Co., Ltd. 5,0005,000 5,0005,000 East Japan Railway Trading Co., Ltd. / JR East Logistics Co., Ltd. ■ Rolling stock manufacturing and maintenance 3,797 3,9183,918 3,9483,948 3,9933,993 4,0004,000 3,797 3,8753,875 3,8263,826 4,0004,000 ■ Travel agent and car rental services （62）（62）（62）（62）（62）（62）（62） Japan Transport Engineering Company /JR East Rail Car Technology & （62）（62）（62）（62）（62） 6,433 JR EAST VIEW Travel Service Co.,Ltd. / JR East Rental & Lease Co., Ltd. Maintenance Co., Ltd. 3,0003,000 3,0003,000 6,0916,091 6,2016,201 6,1706,170 6,3126,312 6,3576,357 6,433 ■ Sports and leisure businesses ■ Overseas railway consulting 2,0002,000 2,0002,000 JR East Sports Co., Ltd. / GALA YUZAWA Co., Ltd. Japan International Consultants for Transportation Co., Ltd. 2,3372,337 2,3712,371 2,3912,391 2,4462,446 2,4622,462 2,4942,494 1,000 1,0001,000 ■ Real estate management ■ Global development of Lifestyle Service Business 1,000 （38）（38）（38）（38）（38）（38）（38）（38）（38）（38）（38）（38） 9494 9898 100100 104104 105105 106106 JR East Urban Development Corporation JRE Business Development Taiwan, Inc. 00 00 '13'13 '14'14 '15'15 '16'16 '17'17 '18'18（fiscal）（fiscal） '13'13 '14'14 '15'15 '16'16 '17'17 '18'18（fiscal）（fiscal） ■ Generation and district heating and cooling (( )) showsshows thethe percentpercent ofof thethe total.total.

JR East Energy Development Co., Ltd. / Shinjuku South Energy Service Co., Ltd. NoteNote 1) 1) Fractions Fractions of of 100 100 million million yen yen have have been been omitted. omitted. NoteNote 2) 2) Fractions Fractions of of 1 1 million million passengers passengers have have been been omitted. omitted. ■ Corporate Venture Capital NoteNote 3) 3) The The sum sum of of the the numbers numbers of of passengers passengers on on the the Shinkansen Shinkansen and and conventional conventional lines lines is is greater greater than than the the passenger passenger total total beca becauseuse some some individual individual passenger passenger trips trips include include both. both. JR East startup Co., Ltd.

104 JR East Group Sustainability Report 2018 JR East Group Sustainability Report 2018 105