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Deployment of Affiliated Businesses

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Deployment of Affiliated Businesses Business Strategy Special Feature ESG Activity Report Financial Information Corporate Data Social Social Social Deployment of Development of Nagoya Station boasting the highest number of passengers among our stations The development of Nagoya Station, which boasts an average in 2017. We will continue to operate Towers and Gate Tower 220,000 passengers per day, the highest number of passengers of in a uniform manner and take initiatives to maximize profits by Affiliated Businesses any our stations, forms a pillar of our affiliated businesses. demonstrating synergistic effects through clearly segregating At Nagoya Station, we opened JR Central Towers (hereinafter, the concepts of businesses of both facilities and promoting “Towers”) right above the station in 2000 and then opened JR collaboration in sales to increase earnings while pursuing efficient Gate Tower (hereinafter,“Gate Tower”) adjacent to the Towers management. Uniform management of JR Central Towers and JR Gate Tower JR Central Towers Towers, the skyscraper complex with a height of 245 meters and a total cosmetics section and we are working to increase sales by attracting new floor area of approximately 417,000 m2, built right above Nagoya Station, customers. is the core of our affiliated businesses. Our three consolidated subsidiaries Nagoya Marriott Associa Hotel is rated highly for its convenient location run a department store, a hotel, and offices. Ever since the opening of the directly above the station, its spectacular view from the top floors, and facility, earnings of our affiliated businesses increased significantly. Figure 1 upscale facilities, etc. Last fiscal The office business has enjoyed a high occupancy rate since its launch. year, we completed the relocation All office spaces were almost fully occupied in the year ended March 2020. and expansion of the concierge This fiscal year, we will commence office renovation work and implement lounge and the renewal of the other initiatives that will enable us to gain a leg up in this market over the Chinese restaurant“Linka.” We are long run. also sequentially renovating guest JR Nagoya Takashimaya, ideally located directly above the Nagoya rooms to further enhance our station, attracts large numbers of visitors. In February 2020, we completed competitiveness. a large-scale renovation that approximately doubled the floor space of the Linka JR Gate Tower JR Gate Tower is a high-rise complex building with a height of etc., in addition to a dining zone. When combined with JR Central approximately 220 m and a total floor area of approximately 260,000 m2 Towers’ restaurant floors, it is that stands adjacent to JR Central Towers and consists of commercial one of the largest collections of JR Central Towers (center/right) and JR Gate Tower facilities, a hotel, offices, etc. restaurants under one roof in the The office spaces are almost fully occupied due to their prime location entire country. directly above Nagoya Station, which the Chuo Shinkansen will serve in By integrating the management the future. and operation of the entire JR Central Group’s affiliated business Housing about 160 fashion stores, Takashimaya Gate Tower Mall building with Towers, we are offers products in categories and price ranges not found in the adjacent pursuing efficient management as department store. the JR Central Group. In addition, The JR Central Group undertakes businesses in the areas of commercial facilities in stations and areas under elevated tracks, Nagoya JR Gate Tower Hotel, together with Nagoya Marriott Associa Gate Tower has added new Transportation, Merchandise and Other, Real Estate, and Other. and also leases real estate such as station buildings. In the Other Hotel, is highly regarded by a wide range of guests as a hotel that focuses content not found in the Towers, The Transportation segment involves railway and bus businesses. segment, we manage hotels, travel agencies, and advertising mainly on accommodation, offering both comfort and functionality. further enhancing the attractiveness The Merchandise and Other segment manages department agencies, etc. We also manufacture rolling stock and maintain, Takashimaya Gate Tower Mall JR Gate Tower also houses an electronics retail store, clothing stores, of the two buildings. stores and provides sales services for goods and food in stations inspect, and repair our railway facilities in this segment. and trains, utilizing the merit of having good railway station Operating revenues of consolidated subsidiaries, excluding JR locations to attract customers. The Real Estate segment develops Central, totaled 636.6 billion yen (simply aggregated) in FY2019. Efforts to develop commercial facilities at stations Figure 1 Shifts in the Operating Revenues of Consolidated Transportation Merchandise and Other Real Estate Other Subsidiaries (simply aggregated) 636.6 In addition to the development of Nagoya Station as described above, renovations of the Toyohashi Station Building“Kalmia” in time for the 630.1 we operate commercial facilities using spaces inside stations and under 50-year anniversary of the opening of the station building. Furthermore, 617.1 （29companies）（29companies） 14.2 (Billion yen) （29companies） 6,000 582.9 elevated tracks within our service area as well as engage in real estate we introduced restaurants in certain areas of“ASTY SHIZUOKA 569.6 （29companies） 556.1 557.7 （28companies） and related businesses using former company housing sites. West Building” to also meet take-out demand and enhanced the （29companies） 528.6 525.9 （29companies） （31 companies）518.1 In FY2019, we increased the floor space of“ASTY SHIZUOKA East attractiveness of the facilities by strengthening the restaurant business. 507.3 29 511.2 （29companies） （ companies）（29companies） 5,000 （31 companies） Building” in Shizuoka Station and added 6 new restaurants, including In the real estate business, we carried out commercial development 462.4 267.1 436.2 （30 companies） a seafood izakaya (Japanese-style pub) where you can enjoy seafood and residential land sales utilizing former company housing sites in 410.5 （30 companies） from Suruga Bay and a tempura bar that serves dishes using local FY2019. （30 companies） 4,000 382.0 385.0 ingredients. As a result, we opened a dining zone with a total of We will continue to promote these initiatives to further improve 369.3 （29 companies（）30 companies） 355.6（29 companies） 335.0 （30 companies） 10 Shizuoka gourmet restaurants. In addition, we renovated the profitability and competitiveness. （30 companies） 77.5 commercial facilities at Ogaki Station and Mikawa-Anjo Station to house 3,000 tenants in line with the regional characteristics and meet the needs of a wide range of customers. 210.1 （19 .ompanies） In FY2020, we doubled the size of the Yaesu North Exit commercial 2,000 area of the“First Avenue Tokyo Station” on the Tokyo Station premises, 277.7 and opened“TOKYO GIFT PALETTE” a specialty souvenir and gift shop zone that features newly developed products, new business formats, 1,000 52.6 and popular brands including those opening their first store at Tokyo （3 companies) Station. We also opened“HIBIYA GOURMET ZONE,” housing popular restaurants in the space under the historic brick arch viaduct between 0 ’90.3 ’00.3 ’01.3 ’02.3 ’06.3’05.3’04.3’03.3 ’07.3 ’08.3 ’09.3 ’10.3 ’11.3 ’12.3 ’13.3 ’14.3 ’15.3 ’16.3 ’17.3 ’18.3 ’19.3 ’20.3 Yurakucho and Shimbashi Station. In addition, we carried out large-scale Note: Each figure in parentheses indicates the number of consolidated subsidiaries at the end of FY. TOKYO GIFT PALETTE 42 CENTRAL JAPAN RAILWAY COMPANY Annual Report 2020 CENTRAL JAPAN RAILWAY COMPANY Annual Report 2020 43.
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