Maximizing the Potential of Station Locations in Japan

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: Tokyo Station City

• Sample Case 2: Residential area stations

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

*Numbers are as of FY ended March 31 , 2014

Greater Tokyo area

・Network: 4,669 miles (7,513 km)

・ No. of Trains: 13,000 /day

JR East is the largest passenger railroad

company in Japan

・Operating Revenue: $27.0 billion /year

・Net Income: $2.0 billion /year

・No. of Employees: 59,000

- No government subsidies

・No. of Passengers: 17 million /day

(the largest in the world)

*Conversion into U.S. dollars at the rate of ¥100 to U.S.$1

Fundamental data of JR East

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High-speed

Metropolitan Regional

Integrated Railroad Network

Fukushima

Yamagata

Nagano

Akita

Shinjo

Shin-Aomori

We own and operate all categories of

railroad transport.

Niigata

Takasaki

Kanazawa

JR East railroad network

5

20%

22%

24%

26%

28%

30%

32%

34%

1994 1997 2000 2003 2006 2009 2012

Non-transportation ratio

■FY2013, 72 consolidated subsidiaries

Transportation

Station Space

Utilization

$2.5b

(9.3%)

$2.2b

(8.3%)

$2.7b

(65.5%) $0.4b

(8.8%)

$0.7b

(17.7%)

$0.3b

(8.0%)

■Profit rates are about 15%

on both rail business and non-rail

business

$4.0b

(14.8%)

$18.3b

(67.6%)

SC & Office

Others

■Outer circle : Operating revenues / Inner circle : Operating incomes

■ “b” following the dollar numbers indicates “billion”.

Business overview of JR East

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ＨＯＭＥ

Each station : unlimited potential

ＳＴＡＴＩＯＮ ＯＦＦＩＣＥ

buy newspapers

buy coffee

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

can be a point to obtain daily necessities. Station

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ＨＯＭＥ

Each station: unlimited potential

ＳＴＡＴＩＯＮ ＯＦＦＩＣＥ

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

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

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ＨＯＭＥ

Each station : unlimited potential

ＳＴＡＴＩＯＮ

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

can be a place to make your lifestyle easier.

Station

ＨＯＭＥ

ＯＦＦＩＣＥ

tax office

hospital

nursery

city office branch

city employment bureau

community center

Center of a city

Housing Nature

Office

Station

building

Regional core stations

Develop unique stations

that attract customer living

the center of the city to

visit.. .

Entertainment

Hotel Medical and welfare

Station

building

Station

building

Entertain

ment

Hotel

Housing

Cultural

facilities

Mega terminal city

Multifunctional city, the

attractive destination

Medical and welfare

Office

Local line area

Regional sub-core

stations

Supporting people’s

attractive living along

the line..

Supporting city

function

Enhancing convenience

of living in the center of

a city

Station/town/railroad network

Daily passengers: 17 million

JR East

Group companies

Added Value

Strategy Space Capital (Investment)

Human

Resources

Life-Style Businesses

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Hotel

Shopping

Centre

Advertising & Publishing Restaurant Retail

Office

Sports & Leisure

Housing

Logistics

〝Ekinaka” Individual retail and restaurants:

2,000 stores

〝Ekinaka” In-Station shopping

zones: 25 locales

Shopping centers: 151 locales

Hotels: 45 locales with

6,600 rooms

Office buildings: 24 locales

Fitness Clubs: 17 facilities

Advertising

Regional Revitalization

& More

Our range of life-style businesses

As of April 1 2014 10

Façade of Tokyo Station Building in 1914

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Post-war reconstruction appearance: 1947 - 2006

Recent conservation and restoration: completed in 2012

Example: Tokyo Station City

Sapia Tower Ｇran Tokyo North Tower

Ｇran Tokyo South Tower

The Tokyo Station Hotel

RAILWAY

In-Station business （ EKINAKA RETAIL・AD）

Hotel

Office

Office

Office

Shopping Center

Tokyo Station City

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ＧranRoof

Tokyo Station City

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Ｇran Tokyo North Tower Ｇran Tokyo South Tower

Office

Office

SC

Ｇran Roof

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

Tokyo Station City

A

Maximum floor area-to-land ratio : 400 %

B

300%

400%

300%

700%

100%

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ＧranTokyo South Tower

Sapia Tower ＧranTokyo North Tower

Tokyo Station City (office buildings)

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43floors above 4floors underground, 15,000 sqm (3.7acre) (JR East possession)

42floors above 4floors underground, 50,000 sqm (12.4 acre) (JR East possession)

35floors above 4floors underground, 30,000 sqm (7.4 acre)

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”

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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.

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Opened in September 2013, with 15 shops

in an area of 14,000 sqms (3.4 acre). on floors B1 through 3F.

Tokyo Station City (Public Space)

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[Eco]

Wall vegetation

Watering utilizes waste water and rainwater falling on the roof

Mist spraying

Latest environmental technology reduces temperature 2-3 degrees Pedestrian deck between North

tower and south tower

Station square will be re-opened in fall 2014

ICT Terrace (2F)

Interactive facilities of Information & Communication Technology

[Design Concept] Tower of Crystal and sail of light

Nursery school

English conversation school Dental clinic

“e-cute” Shopping Zone :87 Shops

Example: Tachikawa Station (residential area stations)

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

Childcare facilites along the network

<Photos>

top：Station nursery

middle：Station

after-school child

care center

bottom：”Oyako

community café”

As of Apr. 2013

Station nursery: 60

Station after-school child care center: 2

Nursery within workplace: 4

Others: 5

Happy child project (residential stations)

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Thank you for your attention