Maximizing the Potential of Station Locations in

Emiko Sayama Director, JR East NY Office New York, NY Today’s presentation ...

• Outline of JR East • Strategy of Life-Style Business • Sample Case 1: Station City • Sample Case 2: Residential area stations

2 Fundamental data of JR East

JR East is the largest passenger railroad company in Japan

・Network: 4,669 miles (7,513 km) ・No. of Passengers: 17 million /day (the largest in the world) ・ No. of Trains: 13,000 /day ・Operating Revenue: $27.0 billion /year ・Net Income: $2.0 billion /year ・No. of Employees: 59,000 - No government subsidies *Numbers are as of FY ended March 31 , 2014 *Conversion into U.S. dollars at the rate of ¥100 to U.S.$1

Copyright© 2014 East Japan Railway Company ALL Rights Reserved. 3 JR East railroad network

Shin-Aomori We own and operate all categories of Akita railroad transport.

Shinjo

Yamagata Niigata Fukushima High-speed Kanazawa Integrated Railroad Network

Nagano Takasaki

Metropolitan Regional 4 Business overview of JR East

Others 34% $2.2b 32% $2.5b (8.3%) (9.3%) 30% $0.3b SC & Office (8.0%) 28% $18.3b 26% $0.7b (67.6%) (17.7%) 24% Non-transportation ratio $2.7b $4.0b 22% (14.8%) $0.4b (65.5%) 20% (8.8%) 1994 1997 2000 2003 2006 2009 2012 Station Space Utilization ■FY2013, 72 consolidated subsidiaries Transportation ■Profit rates are about 15% on both rail business and non-rail business

■Outer circle : Operating revenues / Inner circle : Operating incomes ■ “b” following the dollar numbers indicates “billion”. 5 Each station : unlimited potential

HOME STATION OFFICE

buy buy newspapers coffee

Every station is a point for transportation links. But also…

Station can be a point to obtain daily necessities.

6 Each station: unlimited potential

OFFICE STATION HOME

・Dine with friends ・Exercise ・Explore the bookstore ・Choose the clothes ・Attend the class etc.

Station can be a place to add value to your lifestyle.

7 Each station : unlimited potential

HOME STATION city employment bureau HOME hospital

city office branch ・Drop off and pick up children ・Visit the hospital nursery OFFICE ・Visit to research work ・Go to government related office etc.

tax office community center Station can be a place to make your lifestyle easier.

8

Station/town/railroad network

Station Housing building Medical Cultural and facilities welfare Center of a city Local line area

Station Office Station Entertainment building Office building

Nature Hotel Medical Housing Entertain Hotel and ment welfare

Regional core stations Regional sub-core Supporting city Mega terminal city stations function Develop unique stations Multifunctional city, the that attract customer living Supporting people’s Enhancing convenience attractive destination the center of the city to attractive living along of living in the center of visit.. . the line.. a city Life-Style Businesses

Daily passengers: 17 million

Added Value

Shopping Centre Group companies Logistics

Office Housing Sports Hotel Advertising & Retail & Leisure Restaurant Publishing

Capital Human Strategy (Investment) Space Resources JR East

9 Our range of life-style businesses 〝Ekinaka” In-Station Office shopping buildings: zones: 25 locales 24 locales 〝Ekinaka” Individual retail Fitness Clubs: and restaurants: 17 facilities 2,000 stores Shopping centers: Advertising 151 locales

Hotels: Regional 45 locales with Revitalization 6,600 rooms & More

As of April 1 2014 10 Example: City

Façade of Tokyo Station Building in 1914

Post-war reconstruction appearance: 1947 - 2006

Recent conservation and restoration: completed in 2012

12 Tokyo Station City

Sapia Tower Gran Tokyo North Tower

Hotel Gran Tokyo South Tower Office

Office

Office Shopping Center

RAILWAY GranRoof

In-Station business ( EKINAKA RETAIL・AD)

The Tokyo Station Hotel

13 Tokyo Station City

Gran Tokyo North Tower Gran Tokyo South Tower

Office Office

Gran Roof

SC

14 Tokyo Station City

Exceptional Floor Area Ratio District (116.7ha (288.4 acre) June,2002)

Maximum floor area-to-land ratio : 400 % B

300% 700% 400%

300%

100% A 15 Tokyo Station City (office buildings)

Sapia Tower GranTokyo GranTokyo South Tower North Tower 35floors above 4floors 42floors above 43floors above underground, 4floors underground, 4floors underground, 30,000 sqm (7.4 acre) 50,000 sqm (12.4 acre) 15,000 sqm (3.7acre) (JR East possession) (JR East possession)

32

TOKYO STATION CITY (Shopping Zones)

South Court ..... (31 shops, 1,700 sqm , 2033 sqyd ) “Nippon (Japan) Re-Standard” Gran Sta ..... (50shops, 4,500 sqm, 5382 sqyd ) “Tokyo Precious memory” GranSta Marunouchizaka ..... (13shops, 600 sqm, 717.6 sqyd) “Daily Happiness! Central Street ..... (15shops, 2,900 sqm, 346.8 sqyd) “Link Japan” North Court ..... (13 shops, 990 sqm, 1184 sqyd) “Japanese Kitchen (Food culture) Keiyo Street ..... (23shops, 2,400sqm, 2870 sqyd) ) “Tokyo green Style” 17 Tokyo Station City (Hotel)

Originally opened in 1915, it re-opened in Oct.2012 with 3 banquet halls, 10 restaurants and bars, a fitness and spa facility, and 150 guest rooms.

18 Tokyo Station City (Public Space)

Opened in September 2013, with 15 shops in an area of 14,000 sqms (3.4 acre). on floors B1 through 3F.

[Eco] Wall vegetation Watering utilizes waste water and rainwater falling on the roof Mist spraying Latest environmental technology Pedestrian deck between North reduces temperature 2-3 degrees tower and south tower

ICT Terrace (2F) Interactive facilities of Information & Communication Technology

Station square will be re-opened in 19 fall 2014 [Design Concept] Tower of Crystal and sail of light Example: Tachikawa Station (residential area stations)

Tachikawa Station : 40-50 min.by train from Tokyo with daily passenger usage of 160,000

Nursery school

“e-cute” Shopping Zone :87 Shops

English conversation school Dental clinic Happy child project (residential stations)

Childcare facilites along the network As of Apr. 2013

top:Station nursery middle:Station after-school child care center bottom:”Oyako community café”

Station nursery: 60 Station after-school child care center: 2 Nursery within workplace: 4

Others: 5

23 Thank you for your attention