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Initiatives in Each Business (PDF, 478KB) Our Starting Point Strategy of Value Creation for Our Vision A Foundation Supporting Value Creation Data Initiatives in each business Strategy and progress in the railway business Shinkansen Shinkansen revenues Our value Main initiatives (Billions of yen) We will strive to reinforce high-speed railway safety, Safe and Reliable Transportation 500.0 enhance strengths centered on wide-area railway Trains used in direct operation between the Tokaido Shinkansen and 466.6 470.7 the Sanyo Shinkansen standardizing on the N700A model (FY2020) Capturing both business and tourism 447.7 457.0 networks, and contribute to the expansion of the demand through increases in 434.6 Realizing timetables that increase reliability/convenience 400.0 visitor population. Ensuring Business Sustainability convenience and various campaigns Hakata Depot renovation (end of FY2029) Business strategy Establish new Sanyo Shinkansen maintenance base 300.0 The Shinkansen is JR-West’s biggest growth driver. We will link Hokuriku Shinkansen Tsuruga Extension (Spring 2023) Performance safety–the largest strength of the Shinkansen–to increases in Enhancing transportation services forecast Increase in Mizuho 1 round-trips (March 2019) 200.0 competitiveness. In addition, we will increase our share of the 455.5 e5489 Corporate Service, internet reservations for corporations transportation market vis-à-vis airlines by taking steps to enhance (November 2018) transportation services. Other initiatives will include striving to Expanding area in which e5489 tickets can be received (April 2019) 100.0 stimulate tourism demand by enhancing wide-area tourism routes New IC boarding service for the Hokuriku Shinkansen (end of FY2020) Business trip support campaign and implementing campaigns. We will strive to capture both business and tourism demand. Fostering tourism demand 0 Tourism campaigns through community collaboration (Setouchi, 2017 2018 2019 2020 2023 (FY) Hokuriku, etc.) (Forecast) (Objective) Capturing Inbound Demand Conventional Lines Conventional line revenues (Kansai Urban Area) Our value Main initiatives (Kansai Urban Area) (Billions of yen) We will increase the value of railway belts through Increasing the Value of Railway Belts 400.0 the provision of transportation services that offer Implementing Groupwide initiatives to develop areas along railway lines Strongly advancing initiatives to increase Opening of Umekoji-Kyotonishi Station (March 2019) peace of mind and reliability, the development of Full opening of Osaka Higashi Line (March 2019) the value of railway belts and the quality 316.7 313.6 Umekita (Osaka) underground station (Spring 2023) 300.0 305.0 309.0 308.1 areas along railway lines, etc. of transportation services Naniwasuji Line (Spring 2031) Business strategy Capturing Inbound Demand 200.0 In the Kansai Urban Area, we strive to increase the value of railway Increasing the quality of transportation services ICOCA point service (October 2018) Performance belts and increase the resident population in areas along railway forecast PiTaPa post-paid services (October 2018) 100.0 307.3 lines through Groupwide initiatives. We have been rolling out a New special rapid service fee-based seats service—“A Seats” succession of new initiatives, including the opening of new lines (March 2019) Commuting-hour limited express service—“Raku-Raku Harima” and stations, and the introduction of paid seat reservation services (March 2019) 0 and the ICOCA point service. Securing business sustainability 2017 2018 2019 2020 2023 (FY) Suita Depot renovation (end of FY2029) (Forecast) (Objective) Conventional Lines Conventional line revenues (Other West Japan Area) Our value Main initiatives (Other West Japan Area) (Billions of yen) Through dialogue and collaboration with Invigorating communities, centered on tourism 150.0 communities, we will develop businesses aligned Setouchi Palette Project Contributing to regional invigoration Expanding e5489 ticketless service (September 2018) with local areas and contribute to the activation of WEST EXPRESS Ginga (new long-distance train) (Spring 2020) through the realization of city the Other West Japan Area. 110.0 111.0 108.2 111.5 105.6 Increasing productivity development centered on stations and of 100.0 On-board IC ticket checking equipment (Sakai Line March 2019, Business strategy Wakayama Line Spring 2020, Nanao Line Spring 2021) sustainable transportation services Wireless automatic train control (ATC) system (Wakayama Line In the Other West Japan Area, we will activate regions, centered on Spring 2023) tourism; implement city development initiatives, centered on core 50.0 Performance Implementing city development, centered on core cities forecast cities; engage in dialog with local communities in order to aim for Hiroshima, Okayama, Toyama, etc. 108.1 sustainable railway/transportation services; increase productivity by Onomichi new station building (March 2019) simplifying equipment, etc. In these ways, we will develop businesses Realization of sustainable transportation services Converting of the Kibi Line to LRT 0 aligned with regional conditions. Capturing Inbound Demand 2017 2018 2019 2020 2023 (FY) (Forecast) (Objective) 77 West Japan Railway Group Integrated Report 2019 West Japan Railway Group Integrated Report 2019 78 Our Starting Point Strategy of Value Creation for Our Vision A Foundation Supporting Value Creation Data Initiatives in each business Strategy and progress in the non-railway business Retail Business Operating revenues and operating income Our value Main initiatives (Billions of yen) Change in the method of (Billions of yen) (Sales of Goods/Food Services) (Sales of Goods/Food Services) 20.0 recording revenues from 300.0 in-station tenants 281.0 We will strengthen functions as “Lifestyle Stations,” Enhancing asset efficiency Accelerating growth through in-station Strengthening operating capabilities of Seven-Eleven Japan allied stores 245.5 and provide support for the enjoyment of daily lives FY2019: sales up 40%* vs. before conversion renovations and expanded openings of 233.9 239.8 237.7 and travel. Kyoto in-station renovation (April 2019) Seven-Eleven Japan allied stores/ 15.0 Okayama in-station renovation (Fall 2020) Performance 200.0 VIA INN hotels forecast Business strategy Expanding business scale 244.8 New openings of Seven-Eleven Japan allied stores 10.0 10.0 In the retail business, we will realize increased asset efficiency by End of March 2019: Cumulative total of 391 stores enhancing station functions, including strengthening store operating New openings of “VIA INN”, accommodation-oriented hotels 7.2 capabilities, developing and renovating in-station stores, and 6.1 6.4 100.0 (Department Stores) 5.0 5.2 renovating department stores. We will also expand our business Enhancing asset efficiency scale in line with this by opening Seven-Eleven Japan allied stores Large-scale renovation of JR Kyoto Isetan (Spring 2020) Performance forecast in areas surrounding stations, opening new accommodation-oriented 5.7 0 0 hotels, and implementing other measures. 2017 2018 2019 2020 2023 (FY) Operating revenue Operating income (Forecast) (Objective) Real Estate Business Operating revenues and operating income Our value Main initiatives (Billions of yen) (Billions of yen) (Real Estate Lease and Sale) (Real estate lease and sales) 80.0 162.3 168.5 180.0 We will build communities that people want to reside Implementing city development starting from stations Business utilizing city-owned site southwest of Toyama Station Contributing to increases in regional 148.5 in and visit, and contribute to the development of 139.6 (Spring 2022) value and railway belt value through areas along railway lines and local communities. Redevelopment project in urban district in front of Okayama Station 60.0 development in stations and in areas Performance (FY2026) 109.5 forecast 120.0 (Shopping Centers) surrounding stations. 147.8 We will propose high-quality lifestyles through the Expanding business scale 41.5 Initiatives outside railway service area (Tokyo metropolitan area, 40.0 provision of tangible and intangible products and services. Nagoya metropolitan area) 35.7 35.6 36.3 32.2 Business strategy (Shopping centers) 60.0 Increasing asset efficiency 20.0 In the real estate lease and sales business, to maximize regional Performance Large-scale renovation forecast value and railway belt value in the western Japan area, we are • Kyoto (April 2019) 33.4 implementing aggressive initiatives inside and outside our railway • Okayama (Fall 2020) Total floor space after renovation: approximately 17,500m2 0 0 service area. In the shopping center business, we are working to (increase of approximately 3,500m2) 2017 2018 2019 2020 2023 (FY) increase asset efficiency by conducting development and renovation • Hiroshima ekie Phase IV (October 2019), Rebuilding of station (Forecast) (Objective) Operating revenue Operating income measures that reflect consideration for local conditions. building (Spring 2025) Hotel Business External sales Our value Business strategy We will work to address diverse needs. To that end, we will develop (Billions of yen) We will meet the accommodation needs of a diverse range 80.0 of customers and provide support for comfortable stays. five hotel formats, centered on accommodation-oriented hotels, Addressing diverse accommodation and strive to expand the scale of our hotel business. needs with multiple brands, centered on 63.2 Main Hotel Opening Plans 60.0 accommodation-oriented hotels. 55.7 Brand Category End
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