COMPANY INFORMATION 2020- 202 1
Takanawa Gateway Station Message from the Chairman and the President
While striving to rehabilitate and revitalize its railway services since its establishment, JR East Group has continued to expand its businesses including lifestyle, IT & Suica services. We would like to express our sincere gratitude for the support we have received from our customers, people in communities and all the people associated with JR East Group in these endeavors. Due to the spread of the new coronavirus, our customers’ sense of values regarding transportation and their patterns of behavior have drastically changed. We will continue to focus on safety as our top management priority while pursuing ultimate safety levels. However, to prevent the spread of the new coronavirus, we are strongly committed to o ering our customers peace JR East Group Philosophy of mind and cleanliness when providing our services. Moreover, there is no doubt that our business environment will further drastically change due to a We will earn the trust of our customers as a further decrease in the population, changes in our ways of working and advances in the area of technological innovation, and we can no longer whole group by aiming for ultimate safety continue to address these changes without adopting new ways of thinking and levels as our top priority. We will strengthen taking action. our network capabilities focusing on technologies and information, and we are In the JR East Group Management Vision “Move Up” 2027, we adopted a basic policy to shift our business story from one with a railway perspective to one committed to helping our customers and with a human perspective in order to advance new growth strategies. As the people in communities to realize a uent lives. future that was anticipated has now materialized earlier than foreseen in our plan, we believe that we will need to further accelerate the implementation of the plans that we laid out in “Move Up” 2027. Basic Principles Keeping in mind that the post-COVID society will be completely di erent from the one before, we will focus on putting our management resources into Pursuing safety lifestyle, IT & Suica services, which are our new growth engines, and together with our transportation services, we will create a exible and sustainable By pursuing ultimate safety levels, business culture. To this end, we will work on the establishment of new we will o er a peace of mind to our customers. business models and the reform of our cost structures. By utilizing our “real” network, which is our strength, and by actively proposing new forms of Customer-oriented traveling and living to address our customers’ needs, we will create demand through the concerted e orts of the whole JR East Group, which will lead to We will o er quality services to rise to the the revitalization of the economy and regeneration of regional areas. In these endeavors, by implementing ESG management (Environmental, Social and expectations of our customers. Governance), we will contribute to the achievement of Sustainable Development Goals (SDGs). Close to regional society Though the future may be uncertain, by looking ahead we will treat the By utilizing our network capabilities, we will changes we face as opportunities, continue to meet and overcome our challenges, and achieve the sustainable growth of JR East Group, while contribute to the development of regional society. exceeding the expectations of our customers and people in local communities and contributing to the development of society as a whole group. In these Autonomous and self-standing e orts, we respectfully ask for your continued support and understanding. September 2020 With a broad perspective and willingness to confront challenges, we will think and act on our own initiative.
JR East Group’s development
By ful lling our social responsibility, we will aim to achieve sustainable growth by JR East Group.
Tetsuro Tomita, Chairman and Director Yuji Fukasawa, President and CEO
2 JR East Group Management Vision “Move Up” 2027
To respond to the ever drastically changing management environment and still boldly take on new growth strategies as a whole group, we formulated the JR East Group Management Vision “Move Up” 2027 in July 2018. In consideration of irreversible structural changes in the post-COVID society, we will further accelerate e orts to realize our management vision “Move Up” 2027.
Basic Policies of “Move Up” 2027 Stories to create values: From the provision of services with railway infrastructure as our basis to the introduction of new values to society, focusing on the a uence of everyone in their daily lives.
30 years since the company’s establishment 10 years from now
Base Base point Railway infrastructure, technologies and knowledge point A uent lives for all people
Shifting Creating new services by introducing technologies and knowledge from outside the company, Upgrading of services through the evolution of railways by utilizing a multilayered “real” network and stations as hubs for interaction
Rehabilitation and revitalization of railways O ering new values to society by staying ahead of changes in the business environment
1. Drastic changes and diversi cation in social structures due to 3. Changes in our living environment due to technological innovations such as AI and IoT the decreasing birth rate and population and aging of the population 4. Acceptance of new values through globalization of economy and society 2. Changes and diversi cation in values related to what it means to work and be a uent
JR East Group’s strengths While utilizing JR East Group’s strengths, we will continue to create new values through technological innovation and data integration for transportation, shopping and payment. Business design Open innovation by utilizing knowledge and ideas from external sources IT & Suica Lifestyle Transportation services services services Strengthening EC and Transportation services increasing payment volumes Creating new values through technological innovation and Lifestyle Increasing added value and services data integration for transportation, expanding business areas shopping and payment
Undertaking qualitative reform IT & Suica and fully exerting our strengths services Trust of our customers and people in communities (= JR East Group’s foundation) JR East Group’s services
Overview of “Move Up” 2027 With people (“everyone”) as our base point, and with “Safety,” “People's daily lives,” and “Happiness of our employees and their families” as keywords, we will continue to create values of “Trust” and “A uence” in cities, regional areas, and around the world.
Major e orts for the realization of the JR East Group Philosophy Values Base point Focus points Making cities Making regional areas Developing businesses to be created more comfortable more a uent for the world Realizing seamless mobility Revolutionizing transportation services Promoting tourism Domestic and People’s Commercialization of new services Establishing business models overseas “A uence” based on data analysis, etc. Revitalization of regional industries for overseas businesses daily lives customers Making Suica a shared infrastructure O ering new lifestyles and creating cities
“Everyone” Happiness of Advancement of our work our employees Expanding the range of elds for career development Employees and and their families Exercising creativity closer to our customers their families Preventing global warming and diversifying energy sources Transfer of technologies Contribution to regional society and know-how People in “Trust” Safety Service quality reform ESG management communities Pursuing ultimate safety levels Management of business risk and thorough compliance
ESG stands for Environment, Social and Governance, important elements for the sustainable growth of a company. 3 Hokkaidō Shinkansen Transportation services Ōminato Mimmaya
Aomori Service Area Noheji Shin-Aomori To achieve ultimate safety levels
Hachinohe By positioning safety as a top
Kuji management priority, JR East continues its e orts to prevent accidents through both tangible and intangible measures. Kōma Oga Morioka Akita Miyako
Akita Shinkansen Kamaishi
Sakari Smart platform door
Tōhoku Shinkansen
Shinjō
Aterazawa Onagawa Yamagata Aobadōri Sendai
Niigata Yamagata Shinkansen Yahiko Fukushima Seismic reinforcement of embankments Disaster prevention drills
Hokuriku Shinkansen Naoetsu Jōetsu Conveying the attractiveness 小田原 myōkō Jōetsu Minami- Toyono Shinkansen Otari of the East Japan area Nikkō Nagano Ōmae Karasuyama Hitachi-Ōta Komoro Takasaki TRAIN SUITE SHIKI-SHIMA o ers travel experiences to enjoy abundant and beautiful nature, the Mito deep-rooted industry of each region, and cultures that are part of daily life in a variety of ways, Yokokawa Shiojiri Kashima-Soccer in the rich ow of time and space that is only to be found in railway travel. By operating Joyful Stadium Trains such as the popular sightseeing limited express SAPHIR ODORIKO and Resort Shirakami Oku-Tama Tatsuno Ōmiya Kashimajingū on the Gono Line, we are creating new tourist ows in each region. Musashi- Itsukaichi Kōfu Chōshi Hachiōji Narita Airport
Kōzu Chiba Kurihama Atami Itō Tōkyō
Kazusa-Kameyama Yokohama
Tokyo branch oce Akita branch oce TRAIN SUITE SHIKI-SHIMA SAPHIR ODORIKO Resort Shirakami Yokohama branch oce Niigata branch oce Hachioji branch oce Nagano branch oce Omiya branch oce Shinkansen lines Takasaki branch oce Conventional lines converted Mito branch oce for through–service Shinkansen Creating attractive towns around stations Chiba branch oce Conventional lines Sendai branch oce BRT Morioka branch oce Lines of other JR companies By enhancing convenience and comfort in our stations, we make these stations into gateways
* Due to disaster events, services are partially suspended (as of Aug. 2020). suitable for their communities.
Promoting inbound strategies
JR East is further improving the environment to provide overseas travelers with safe and comfortable travel.
Welcome Suica Multi-language guidance Takanawa Gateway Station Development of spaces under viaducts at Niigata Station
4 土浦 We will contribute to the development of local communities while o ering safe and quality services to respond to customers’ needs.
Kawagoe Ōmiya Toride Komagawa Minami-Urawa Railway network expansion in Musashi-Urawa Abiko the Tokyo metropolitan area Shim-Matsudo
By making further improvements in our railway Akabane network around the Tokyo metropolitan area, we Kita-Senju continue to make local communities more attractive. Haijima Ikebukuro Nishi- Sakura Tachikawa Kokubunji Ueno Nishi-Funabashi Musashi-Itsukaichi Mitaka Shinjuku Kinshichō Hachiōji Hamamatsuchō Tōkyō Fuchūhommachi Shinkansen network Minami- Shinagawa Funabashi Ōsaki Shin-Kiba Chiba E5 Series: Tohoku Shinkansen Hayabusa Haneda Airport Access Line conceptSoga Musashi- E6 Series: Akita Shinkansen Komachi Kosugi West Yamanote route Shimbashi Haneda Saikyō Line East Yamanote route E7 Series: Hokuriku Shinkansen Kagayaki Airport Yamanote Line Ōshio Kawasaki Terminal 2 Line Shinagawa Rinkai Line Coastal area route Ōsaki Tōkyō Teleport Yokohama Legends Yokosuka Line Tōkyō Tōkyō Freight Terminal Monorail Existing lines (JR East) Tōkaidō Line New Access Line Existing lines (other companies) Keikyū Line Kamata New lines New station at Tōkaidō Haneda Airport E8 Series: Yamagata Shinkansen Line increase Freight Line Chūō Line Green Car * Scheduled for operation commencing spring 2024 Ōfuna North-South Axis Greater convenience for the Ueno-Tōkyō Line, and other lines Chigasaki East-West Axis Zushi Enhanced services for the Chūō Line, and other lines (Introduction of Green cars to the Chūō Line) Tokyo Megaloop Greater convenience and comfort for the Musashino, Keiyō, Nambu, and Yokohama Lines
E orts for next-generation railways Smarter services
By introducing new technologies such as autonomous driving and by developing By promoting ticketless services and experimenting with service robots at stations, next-generation Shinkansen, we will further improve our transportation services we are o ering a more comfortable, easy-to-use environment for customers. and achieve qualitative transformations.
Alarm Camera Camera and radar sensing
Processor
E956-type Shinkansen test train, ALFA-X Developments for Shinkansen e-ticket Service robots for stations advanced autonomous driving
Establishing new global business models, Global Business we aspire to provide diverse lifestyle options in Asia and beyond.
Image of Indian High Speed Rail (courtesy of JICA)
JR East Group is contributing to reliable railway West Midlands Trains Ltd. (owned jointly by JR East, JR East provides support in inter-governmental service of the Purple Line, an urban railway in Mitsui & Co., Ltd. and Abellio UK) began operation in negotiations, while Japan International Consultants Bangkok, Thailand, by delivering rolling stock and December 2017. JR East can make use of its years of for Transportation Co., Ltd. prepares the detailed providing maintenance through a local aliate, experience toward optimizing the franchise’s operations. design documents, bidding documents, as well as Japan Transportation Technology (Thailand) Co., Ltd. training program and materials for National High Speed Rail Corporation Limited (NHSRCL) core sta .
5 We will continue our e orts in o ering new lifestyles and creating cities through Ekinaka (in-station) businesses including Lifestyle Services retail stores and restaurants and shopping center and hotel businesses.
Operating revenue target for Operating income target for Lifestyle Service Business Growth Vision (NEXT10) lifestyle services business in FY2027: lifestyle services business in FY2027: 1.2 trillion yen (approx. 1.5 times FY2017 level) 180 billion yen (approx. 1.5 times FY2017 level) A 10-year commitment to taking on challenge of the next 100 years Operating Operating revenue income (billion yen) (billion yen) Approx. Approx. 1,200 200 1,200.0 1.5 times 1.5 times
Expanding business areas and creating Promoting the development of appealing towns businesses with open innovation Shinagawa Development Project / WATERS takeshiba / JAPAN RAIL CAFE / JW360° / LUMINE Jakarta (Indonesia) / Breeze Nanshan atré / Development of the area in and around the north passage of Tokyo Station / STATION DESK Tokyo Marunouchi / JRE CARD, etc. Yokohama Station West Exit Building Plan, etc.
STATION DESK Tokyo Marunouchi Shinagawa Development Project
Breeze Nanshan atré (Taiwan) WATERS takeshiba
NOBIRU HIRAKU Grow Pioneer NEXT10 4 pillars TSUNAGU MIGAKU Connect Improve
Revitalizing regions by communicating their appeal and encouraging inter-regional exchanges Increasing the value of existing businesses
Childcare Support Service HAPPY CHILD PROJECT / LUMINE Shinjuku / NEWoMan Shinjuku / atré Ebisu / S-PAL Sendai / Rediscovering the Regions Project /JR Fruits Park Sendai ARAHAMA/ nonowa Kunitachi / HIBIYA OKUROJI / JRE MALL, etc. A-FACTORY Hirosaki Yoshino-cho Cider Brewery, etc.
NEWoMan Shinjuku atré Ebisu COTONIOR Kichijoji NOMONO Ueno store
JR Fruits Park Sendai ARAHAMA A-FACTORY S-PAL Sendai nonowa Kunitachi Hirosaki Yoshino-cho Cider Brewery
6 By strategically promoting MaaS, Suica, and data IT & Suica Services marketing, we will establish digital networks.
Mission
■ We will create new values by integrating our real transportation network and lifestyle services, which are our strength, with the digital network. ■ By integrating various JR East Group businesses and adopting a personal approach with a human perspective in the post-COVID society to cope with the diverse values of customers, and by exibly cooperating with external stakeholders, we will accelerate digital transformation (DX) and contribute to increasing the revenues of the Group and the drastic transformation of its businesses. O ering new values for our customers and people in regional communities
Integration and human perspective
Real network Digital network Transportation services × lifestyle services MaaS × Suica × data marketing
Suica and Viewcard
JRE POINT
MaaS Data marketing
Our strength is our real network that supports the digital network. The digital network can transform the real network.
Flexible coalition with external stakeholders
Suica MaaS
By integrating railway ticketing, We aim to develop an all-in-one e-money and authentication, we aim to platform that o ers travel achieve stable provision of secure and information as well as ticketing convenient services to customers. and payment services, in order to
JRE POINT Data marketing
JRE POINT is a common loyalty points program for JR By utilizing data on our transportation services, lifestyle services, MaaS and East Group services. Customers can earn JRE POINT for Suica businesses in marketing activities, we aim to realize personalized their Suica railway use, their purchases at aliated services for customers’ needs. shops in our station buildings and Ekinaka, and for payments with their Viewcard. The accumulated points can be used for shopping in station buildings, charged Customers to registered Suica, or exchanged for Suica Green Car Tickets for JRE POINT, etc. O ering services for personal needs
Data marketing Deep understanding of customer needs various stakeholders
Viewcard Coalition with Data Lake Suica MaaS Viewcard Co., Ltd. issues various credit cards with Suica. Data
Number of Viewcard users with Suica function: Coalition with
approx. 5.40 million (as of the end of March 2020) various stakeholders
JR East website
JRE CARD Yield information (with a commuter pass function)
7 Outline of Company Organization
Name of company: East Japan Railway Company As of June 23, 2020 External Shinagawa & Large-scale Developments Dept. Location: 2-2-2 Yoyogi, Shibuya-ku, Tokyo, Japan Relations Oce Date founded: April 1, 1987 Management Planning Dept. Corporate Capital: 200 billion yen Planning Reconstruction Planning Dept. Headquarters Employees: 51,560 (as of April 1, 2020) Investment Planning Dept. Passenger line network: Shinkansen/1,194.2 km Technology Intellectual Property Center Conventional lines/6,207.5 km Innovation Headquarters * Including BRT stations
Number of stations: 1,676 * Including BRT stations MaaS & Suica Headquarters Overseas Oces (New York, Average number of trains per day: 12,296 Paris, London, Singapore) (as of March 2020 schedule revision) International A airs Inquiry & Audit Dept. Average number of passengers per day: 17.8 million Headquarters (as of March 31, 2020) Business outline: Transportation, Retail & Services, Transport Safety Dept. Real Estate & Hotels, Others Customer Service Quality Reformation Dept. General Meeting of Marketing Dept. Shareholders Management Information Tourism Strategy Oce
2,000 2,093.2 2,113.3 2,061.0 TRAIN SUITE SHIKI-SHIMA Conductors Depot
Facilities Dept.
1,000 Chairman Mechatronics Technology Management Center
Track Maintenance Technology Management Center Life-Style Business 0 Electrical & Signal Network System Dept. 2018.3 2019.3 2020.3 Development Headquarters
100 Tokyo Branch Oce
Yokohama Branch Oce 0 Construction Dept. 2018.3 2019.3 2020.3 Board of Hachioji Branch Oce
0 Energy Management Center Tokyo Electrical Construction 2018.3 2019.3 2020.3 & System Integration Oce
* The consolidated gure is net income which is attributed to Structural Engineering Center Tohoku Construction Oce shareholders of the parent company.
2-2-2, YOYOGI, SHIBUYA-KU, TOKYO 151-8578, JAPAN https://www.jreast.co.jp/e/
2020.09 Published by: East Japan Railway Company. Copying all or part of this document including photographs without permission may constitute a violation of copyright. This brochure is printed on FSC™-approved paper using unscented vegetable oil-based ink.