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WEST JAPAN RAILWAY COMPANY
Original Purpose,A Fresh StartAnnual Report 2011
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West Japan Railway Company (JR-West) is one of the six passenger railway
transport companies formed by the split-up and privatization of Japanese National
Railways (JNR) in 1987. Its mainstay railway business operates a network of lines
with a total route length of approximately 5,000 kilometers, extending through
18 prefectures that account for around one-fth of Japans land area.
Railway systems in Japan evolved as a natural consequence of the cities that
formed through the accumulation of people in the limited number of plains throughout
the country. Joined like links in a chain, the geographical distribution of these cities
has created a solid demand base that accounts for one-fourth of all passenger volume
in Japan. While railway operations remain the core of its business, JR-West also aims
to make the most of the assets that are part of its network of stations and railways to
develop its retail, real estate, and hotel businesses.
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This annual report contains forward-looking statements that are based on JR-Wests current expectations,
assumptions, estimates, and projections about its business, industry, and capital markets around the world.
These forward-looking statements are subject to various risks and uncertainties. Generally, these
forward-looking statements can be identied by the use of forward-looking terminology such as may,
will, expect, anticipate, plan, or simil ar words. These statements discuss future expectations,
identify strategies, contain projections of results of operations or of JR-Wests nancial condition, or state
other forward-looking information.
Known or unknown risks, uncertainties, and other factors could cause the actual results to differ materially
from those contained in any forward-looking statements. JR-West cannot promise that the expectations
expressed in these forward-looking statements will turn out to be correct. JR-Wests actual results could be
materially different from and worse than expectations.
Important risks and factors that could cause actual results to be materially different from expectations
include, but are not limited to:
expenses, liability, loss of revenue, or adverse publicity associated with property or casualty losses;
economic downturn, deation, and population decreases;
adverse changes in laws, regulations, and government policies in Japan;
service improvements, price reductions, and other strategies undertaken by competitors such as other
passenger railway and airline companies;
earthquake and other natural disaster risks; and
failure of computer telecommunications systems disrupting railway or other operations.All for ward-l ooking st atements in th is annual re port are mad e as of September 2 011 based on informati on
available to JR-West as of September 2011, and JR-West does not undertake to update or revise any of its
forward-looking statements or reect future events or circumstances.
Future compensation and other expenses related to the Fukuchiyama Line accident that occurred on April
25, 2005 are difcult to estimate reasonably at this time, and so have not been included in forecasts.
Cauiary Sam Wih rSpC FrWard-Lkig SamS
2 Overview
4 ConsolidatedFinancialHighlights
6 ThePresidentsMessage
8 SpecialFeature:
OriginalPurpose,AFreshStart
18 OperatingResultsbyBusinessSegment
26 CorporateSocialResponsibility
32 CorporateGovernance
38 BoardoDirectorsand
CorporateAuditors
39 ExecutiveOfcers
40 OrganizationalStructure
41 FinancialSection
82 AnalysisoJR-WestOperations
85 InvestorInormation
86 ConsolidatedSubsidiaries
88 CorporateData
Contents
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Osaka
Kyoto
Kobe
Tokyo
$
JR-Westsbusinessiscentraltopeoplesdailylives.Weoperatearailwaynetworkthatstretchesacross
anareaoapproximately104,000squarekilometers,covering18preecturesinwesternHonshuand
thenortherntipoKyushu,withatotaloperatingkilometerageo5,012.7kilometers.Inadditiontorailway
passengerservices,weoperateretail,realestate,andotherbusinessesthatoersynergisticbenefts
withtherailwaybusiness.Theareaservedbyourrailwaynetworkishometoapproximately
43millionpeople34%oJapanspopulationwithanominalGDPo163trillion.
AsignifcantportionoJR-WestsrevenueisderivedromitsSanyoShinkansenservice,ahigh-speed
intercitytransportlineoperatingatspeedsoupto300kilometersperhourbetweenShin-OsakaStationin
OsakaandHakataStationinthecityoFukuokainnorthernKyushu.Theservicealsoconnectsseveralmajor
citiesinwesternJapan.JR-WestsUrbanNetworkprovidesservicestotheKyotoOsakaKobemetropolitan
area,whichhasapopulationomorethan20millionpeople.Eachday,anaverageo3.9millionpassengers
(fscal2011)useJR-WestsUrbanNetwork,mainlyorcommutingtoandromworkorschool. Goingorward,JR-Westwillcontinuetocontributetopeopleslivesthroughthesebusinessoperations.
5,012.7 km
ru Lgh
163 trillion
gdp
43 million
ppuLai
OurBusinessis
Centra to Peopes lives.
riW
JR-Wests service area
Urban Network (943.0-km basis)
WEST JAPAN RAILWAY COMPANY2
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.
.
.
.
.
.
.
.
, .
.
.
.
66%
806.4 billion
17%
201.3 billion
6%
75.7 billion
11%
129.9 billion
64%
61.1 billion
4%
3.5 billion
23%
22.2 billion
10%
9.6 billion
71%
1,933.7 billion
4%
114.6 billion
14%
370.9 billion
11%
292.6 billion
Transportation Operations
Sales of Goods and Food Services
Real Estate Business
Other Businesses
praig ruS
byBusinessSegment(FromThirdParties)
(Consolidated)
praig iCm
byBusinessSegment(Consolidated)
aL aSSS
byBusinessSegment(Consolidated)
raSprai praiS
Sno Snnsen
TheSanyoShinkansenisahigh-speedintercitypassenger
servicebetweenShin-OsakaStationinOsakaandHakata
StationinFukuokainthenortherntipoKyushu.Thelineruns
throughseveralmajorcitiesinwesternJapan,includingKobe,
Okayama,Hiroshima,andKitakyushu.
ubn etwo
TheUrbanNetwork(KyotoOsakaKobeareaconventionallines)
providespassengertransportservicestothedenselypopulated
citiesoKyoto,Osaka,andKobeandtheirsurroundingareas.
te Conventonl Lnes
JR-Westsotherconventionallinesconsistolimitedexpressand
expressservicetrainsorintercitytransport,localtransportorcom-
mutingtoandromworkorschoolinsuchcoreurbanareasasHiroshi-
maandOkayama,andlocallinesthroughless-populatedareas.
SaLS F gdS ad Fd SriCS
JR-Westssalesogoodsandoodservicesmainlytargetrailway
passengers,consistingoconveniencestores,specialtystores,
andoodandbeverageestablishmentslocatedinandaround
stationbuildings,aswellasdepartmentstores.
raL Sa BuSiSS
JR-Westsrealestatebusinessconsistsothemanagemento
shoppingcentersinstationbuildingsandotheracilities,operation
olargestationbuildingsatterminalstations,developmento
commercialacilitiesnearstationareasandunderneathelevated
tracks,andrealestatesalesandleasingoperationsorresidential
andurbandevelopmentocusedonrailwaylines.
hr BuSiSSS
JR-Westsotherbusinessesconsistoatravelagencybusiness
operatedbyNipponTravelAgencyCo.,Ltd.,whichbecamea
consolidatedsubsidiaryoJR-Westinfscal2004,ahotelbusiness
operatingtheHotelGranviaKyotoandotherhotels,aswellasan
advertisingagencybusiness,maintenanceandengineeringservices,andotherbusinessestoacilitatethesmoothand
efcientoperationothemainstayrailwaybusiness.
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Millionso
U.S.dol la rs1
CSLidad FiaCiaL highLighS
1YenfgureshavebeenconvertedintoU.S.dollarsattherateo83=U.S.$1.00,theexchangerateprevailingonMarch31,2011.
2Long-termdebtandpayablesincludesthecurrentportionolong-termdebtandlong-termpayables.
3EBITDA=Operatingincome+Depreciation
Billionsoyen
2011 2010 2009 2011
praiS:
Operatingrevenues 1,213.5 1,190.1 1, 275.3 $14,620
Operatingincome 95.9 76.5 122.5 1,156
Netincome 34.9 24.8 54.5 421
BaLaC ShS:
Totalassets 2,672.4 2,546.3 2,461.8 32,197
Long-termdebtandpayables2 1,102.6 1,038.9 953.2 13,284
Totalnetassets 721.2 702.1 689.6 8,689
CaSh FLWS:
Netcashprovidedbyoperatingactivities 223.2 161.3 178.8 2,689
Netcashusedininvestingactivities (246.2) (208.7) (172.6) (2,967)
Netcashprovidedby(usedin)fnancingactivities 51.4 54.6 (10.1) 619)
hr daa:
Depreciation 150.8 141.9 137.0 1,817
Capitalexpenditures,excludingcontributionsreceivedorconstruction 260.0 210.1 163.9 3,132
EBITDA3
246.8 218.4 259.5 2,870
Yen U.S.dollars1
pr Shar daa:
Netincome 18,066 12, 837 27,729 $ 217
Cashdividends 8,000 7,000 7,000 96
Netassets 355,712 345,568 339,113 4,285
%
raiS:
ROA(operatingincomebasis) 3.7 3.1 5.0
ROE 5.2 3.7 8.4
DOE 2.3 2.0 2.1
Equityratio 25.8 26.3 26.7
WestJapanRailwayCompanyanditsconsolidatedsubsidiaries
YearsendedMarch31
WEST JAPAN RAILWAY COMPANY4
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500
1,000
1,500
70
140
210
00
Operating Revenues
Operating Income (right)
Net Income (right)
060504030201 07 08 09 10 11
1,213.5
95.9
34.9
0
150
300
450
Shinkansen
Urban Network(KyotoOsakaKobe Area)
Other Conventional Lines
060504030201 07 08 09 10 11
323.9
284.4
119.6
0
1,000
2,000
3,000
Total Assets
Long-Term Debt and Payables
Total Net Assets
060504030201 07 08 09 10 11
2,672.4
1,102.6
721.2
0
20
10
30
ROA (Operating Income Basis)
ROE
Equity Ratio
060504030201 07 08 09 10 11
25.8
5.2
3.7
praiS
Billionsoyen
raiLWay praig ruS
Billionsoyen
BaLaC ShSBillionsoyen
raiS
%
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Effects of the Great East Japan Earthquake
First,Iwouldliketostatethatthethoughtsandprayersoallat
JR-Westarewiththosewhohavelosttheirlivesandthosewho
areotherwisesueringasaresultotheGreatEastJapan
Earthquake.WithregardtotheJR-WestGroup,ortunately,we
didnotsueranydirectdamagetoouracilities.However,we
areexperiencingsomedifcultiesinprocuringpartsorour
rollingstockthatareproducedintheaectedregions.Thishas
orcedustotemporarilyhaltoperationocertaintrains.In
additiontocontinuingourvariousinitiativestoprovidesaeand
securetransportation,wewilloersupporttothepeopleinthe
aectedregionstothegreatestextentpossiblebasedonthe
situationonthegroundwithintheseregionsandtheneedso
thepeoplethere.Further,webelievethatinordertoovercome
thenationwidecrisiscausedbythisdisaster,itisimportantor
ustofrstocusoureortsoninvigoratingtheWestJapanarea,
whichinturnwillhelprevitalizethedomesticeconomy.We
anticipatethatthiswilllendstrengthtotherecoveryeorts
ollowingtheearthquake.Forthisreason,wewillredoubleoureortstocontributetotheinvigorationotheWestJapanarea
throughourbusinessactivitiescenteredonrailways.
Overvie of Fisca 2011
InthefscalyearendedMarch2011,wewereabletoachieve
increasesinbothrevenuesandincome.Thiscanbeseenasthe
resultoseveralactors,suchashighertransportationrevenues
romShinkansenservicesandothersourcesduetotherecovery
othedomesticeconomyaswellastherecoveryromthelosses
associatedwiththeepidemicothenewinuenzavirusexperi-
encedduringthepreviousyear,andreducedexpensescentered
onpersonnelcosts.Additionally,inOctober2010,werevisedthe
JR-WestGroupsMedium-TermManagementPlan20082012,
whichweoriginallyormulatedinMay2008.Inthisrevision,we
defnedamanagementvisionoachievingsustainablegrowth
overthelongterm,whilepursuingexcellenceinsaetymanage-
mentandseekingtobeacorporategrouptrustedbycustomers,
communities,andsociety.Inoureortstorealizethismanage-
mentvision,wewillcontinuetoimplementinitiativesbasedon
ourthreepillarsomanagementmeasurestohaveourselves
acceptedasactingwiththebestintentionsbythevictimsothe
trainaccident,measurestoenhancesaety,andurtheringoreorm.Intherevisedplan,however,wealsooutlinedthreenew
strategiesgearedtowardtherealizationothisvision
coexistencewithlocalcommunities,innovationbytechnology,
andthinkingandactingbasedonthefeld.
h prSidS mSSag
akayuki SaSakiPresident, Representative Director, and Executive Ofcer
OurGoalisto
AchieveSustainabeGroth.
WEST JAPAN RAILWAY COMPANY6
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Asacompanythatoperatesrailwaysasitsmainbusiness,
werealizethatwecannotsurviveindependentothecommunitiesinwhichweoperate.Thereore,wemustestablishstrong
relationshipswithlocalgovernments,transportationproviders,
andotherlocalorganizations.Goingorward,wewillworktobuild
comprehensivewin-winrelationshipswiththeseorganizations.
Also,intheuture,wewillneedtoaddressthevariousissues
arisingromthedecliningpopulationinJapan.Tothisend,we
intendtoreormourrailwayoperationsystemandimplement
othermeasuresmeanttopromoteinnovationbytechnology.
Additionally,wewillthoroughlyreviseactualworkowprocesses
throughouttheCompanyromaperspectivethatocusesonthe
feldoplaythatdefnesouroperatingenvironment.Wehope
thatthiswillurtherstimulatetheJR-WestGroupandhelp
enhanceourcorporateculture.
Competion of To Major Projects
InthefscalyearendingMarch2012,webeganoperationo
directservicesbetweentheSanyoandtheKyushuShinkansen
linesaswellasoperationoOsakaStationCity,bothmajor
projectsthattheJR-WestGrouphasdevotedmanyyearsto
complete.OnMarch12,2011,servicesbeganoperationon
alllinesotheKyushuShinkansenline.Onthesameday,
webeganoperatingthenewMizuhoandSakuraShinkansen
services,whichconnectShin-OsakaandKagoshima-Chuo
stationsbymeansoadirectservice.Itisunortunatelytruethat
thesenewservicesgototoaslowstartduetosuchactorsas
theGreatEastJapanEarthquake,whichoccurredtheday
beorethedirectserviceswereduetobegin.However,the
substantialreductionintraveltimecombinedwiththetraveling
comortprovidedbyournewrollingstockwonthepraiseo
customers,consequentlywebelievethattheseserviceswere
abletoachieveastrongstartregardlessothedifcultoperating
environment.Goingorward,wewillworkincooperationwith
travelcompaniesandlocalgovernmentsinourserviceareato
communicatetheappealoKyushusmanytouristdestinations
topeopleintheKyotoOsakaKobeareaaswellastotherest
oWestJapan,whilealsocommunicatingtopeopleinKyushu
theappealoKyoto,Osaka,andotherdestinationsinWest
Japan.Throughtheseeorts,wehopetoencourageincreased
interactionbetweenbothareas.
OsakaStationCityhelditsgrandopeningonMay4,2011,
markingthecompletionoamassivedevelopmentproject.Withaoorspaceo245,000m2,theprojectrequiredaninvestment
oapproximately210billion.Inadditiontomakingthestation
moreopenandeasiertouse,theprojectentailedthe
constructionoanewbuildingthatwouldbeamplyequipped
withdepartmentstores,specialtyshops,andofcespaces.WebelievethatOsakaStationCitywillcontributegreatlyto
increasingrevenuesromrailwayoperations,aswellasrom
thesalesogoodsandoodservicesandtherealestatebusiness.
Also,anumberootherdevelopmentprojects,unrelatedtothe
Group,arecurrentlybeingconductedintheareasurrounding
OsakaStation.Inthenearuture,weanticipatethatthisareawill
becomedenselypopulatedbyappealinglarge-scalecommercial
institutionsthoroughlyconnectedbyundergroundandabove-
groundwalkways,thusmakingitveryeasytogetaround.The
JR-WestGroupaimstomakethisareaevenmoreappealingso
thatpeopleromtheKyoto-Osaka-Kobeareaandevenpeople
livingurtherawaywillcometovisitit.Toaccomplishthisgoal,
theGroupwillcoordinateitseortswithrailwayoperatorsand
otherorganizationsinthesurroundingareas.
Forecast for Fisca 2012
ForthefscalyearendingMarch2012,weareorecasting
somewhatlowoperatingresults,duetothecompounded
eectsosuchactorsastheeconomicslowdownollowing
theGreatEastJapanEarthquakeandthetemporaryincrease
oexpensesassociatedwithdevelopmentprojects.However,
wewillcontinuethevigorousimplementationothestrategies
outlinedinourmedium-termmanagementplan,whilemaking
saetyourutmostpriorityandaddressingthemanagement
issuesthatweremadeapparentbytherecentearthquake,
includingthoserelatedtodisasterprecautionarymeasures
andtheuninterruptedprocurementopartsorourrollingstock.
Intheseways,wewillsteadilystrengthenourmanagement
oundationsamidstthisharshmanagementenvironment,and
worktoensurethattheGroupachievesimprovedoperating
resultsandsustainablegrowth.
Inclosing,Iwouldliketoaskourshareholdersandotherinvestors
ortheircontinuedsupport.
May2011
TakayukiSasaki
President,RepresentativeDirector,andExecutiveOfcer
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Contents
In October 2010, the Company revised the JR-West Groups Medium-Term Management Plan
20082012, which outlines JR-Wests goal of contributing to the invigoration of the West Japan
area and create strong bonds of trust with all of its stakeholders. While continuing to stay true
to our original purpose of realizing our Corporate Philosophy, the revised plan offers a fresh
start. In doing so, the JR-West has identied three new strategiescoexistence with local
communities, innovation by technology, and thinking and acting based on the eldand laid
out the roadmap for a new quest in pursuit of sustainable growth. In this section, we will offer
an overview of the revised plan. In addition, we will introduce the Groups initiatives with regard
to the operation of Osaka Station City and the direct services between the Sanyo and the
Kyushu Shinkansen linesboth of which are symbolic embodiments of these new strategies.
Background and Goas of the Revision
TheCompanycausedanextremelyseriousaccidentthat
occurredontheFukuchiyamaLine.Asaresult,theJR-West
GroupestablishedtheBasicSaetyPlan,afve-yearplan
targetingthegoalobuildingacorporateculturethatplacestop
priorityonsaety,whichwasimplementedinfscal2008.All
Groupmembershavesubsequentlyworkedtirelesslytoward
achievingthisgoal.
TheMedium-TermManagementPlan20082012was
establishedinMay2008.Thebasicpoliciesothisplan
emphasizedtheimportanceoreturningtothestartingpointo
theGroupsbusiness,whichcanbedescribedasrealizing
JR-WestCorporatePhilosophy.Theplanalsooutlined
medium-tolong-termstrategiesgearedtowardaccomplishingthisobjective.
riSi F h Jr-WS grupSmdium-rm maagm pLa20082012
8 RevisionoTheJR-WestGroups
Medium-TermManagementPlan20082012
14 OpeningoOsakaStationCity
16 DirectServiceswiththeKyushuShinkansenLine
OriginalPurpose,
A Fresh Start
SpCiaL Faur
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However,theoperatingenvironmenthasbecomesignifcantly
harsherthanitwasatthetimetheJR-WestGroupsMedium-TermManagementPlan20082012wasormulated.Factors
contributingtothisharshenvironmentincludetherapiddeterio-
rationotheeconomythatbeganinall2008andtheimplemen-
tationogovernmentinitiativessuchastheMarch2009lowering
oexpresswaytolls.
Further,inall2009,aseriouscompliance-relatedissuewas
uncoveredwithintheCompany,whichnotonlycausedgreat
emotionaldistraughtorthevictimsotheFukuchiyamaLine
accident,butalsoseverelydamagedsocietystrustintheCompany.
Facedwiththisunprecedentedharshenvironment,we
decidedtorevisethecurrentmedium-termmanagementplan,
scheduledtoendinfscal2013.Wewanttoocusemphasison
long-termsustainabilityinourapproachtomanagementwhile
urtherclariyingandrealizingourmedium-tolong-termmanage-mentvision.
Underthisnewplan,allGroupemployeeswillcometogether
asone,workingtorebuildsocietystrustintheCompanyand
acilitatetherecoveryoitsbusinessresults.
MAAGEMET VSO
We,evermindulotheFukuchiyamaLineaccident,pursuing
sustainablegrowthbasedonsaetyandreliability,contributing
totheinvigorationotheWestJapanareathroughourbusiness
activities,andestablishingsaetymanagementsystems,willseek
tobeacorporategrouptrustedbycustomers,communities,
andsocietyinordertorealizeourCorporatePhilosophy.
NewStrategies
Coexistence with
local communities
Innovation by technology
Thinking and acting
based on the field
Care for
victimsEnhancement
of safety
Furthering
of reform
Three Pillars of Management
CORPORATEMISSION
Contributing to the invigoration of
the West Japan area through our
business activities centered on railways
Progressing with local communities
MEDIUM- TO
LONG-TERM VISION
Becoming a corporate group with
superior safety management
Becoming a corporate group
trusted by customers, communities,
and society
PREREQUISITE FOR
THE COMPANYSCONTINUED OPERATION
Achieving sustainable growth
based on
safety and reliability
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Regardlessotherevisionothemedium-termmanagement
plan,wewillcontinuetovigorouslypromotemanagement
basedonourthreepillarsomanagement,whichareoutlined
below.Basedonthesepillars,theGroupiscultivatingasaety
frstmindsetaswellasdevelopingarailwaythatcangive
customerspeaceomindandisworthyotheirtrust.
MeasurestoHaveOurselvesAcceptedasActingwiththeBest
IntentionsbytheVictimsotheTrainAccident
JR-Westisearnestlyapproachingthevictimsothetrain
accident.Byoeringthemoursympathyandsupport,weaim
toaddresstheirconcernsinacourteousandmindulmanner.
Additionally,wewillcontinuetoholdmeetingswiththemin
ordertoexplainourinitiativestoenhancesaety,remain
receptivetowardtheiropinionsotheCompany,andrespond
toanyquestionstheymighthave.
Further,wewillcontinuetoprovidevenuesorvictimsto
discusswithustheiropinionsanddesiresotheCompanyin
thehopeobetterbeingabletorespondtotheirvariousneeds.
Also,wewilldevelopmeasurestoenableustooeremotional
supporttovictimsandhelpalleviateanyuncertaintiesthey
mayhaveortheuture.Goingorward,theCompanywill
thoroughlydiscussthedevelopmentosuchmeasureswhile
takingintoconsiderationtheopinionsothevictims.
MeasurestoEnhanceSaety
In2008,JR-WestestablishedtheBasicSaetyPlaninordertopromotetheenhancementosaety.
Amajorgoalsetorthinthisplanwasthegoalobuildinga
corporatesystemthatensurednoaccidentsproducing
casualtiesamongourcustomersandnoseriouslabor
accidentsaectingouremployeesoccurred.Thiswasalso
presentedasamanagementgoalinthemedium-term
managementplanannouncedinMay2008.Accordingly,the
Groupwillcontinuetoworkunceasinglytoachievethisgoal
andcompletetheinitiativesoutlinedintheBasicSaetyPlan.
FurtheringoReorm
JR-Westisimplementinginitiativestoreormitsoverlytop-
downcorporateculture.Atthesametime,theCompanyis
pushingorwardcomprehensiveimprovementmeasuresthat
takeintoaccountitsreectionsregardingsuchissuesasthe
inormationleaksthatoccurredduringtheinvestigationothe
accident.Throughtheseeorts,allGroupmembersarework-
ingtoreormthecorporateculturethroughstrongercorporate
governanceandamoreopenorganizationalstructure.
COTATO OF OR TREE PllARS
OF MAAGEMET
10 WEST JAPAN RAILWAY COMPANY
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VAlE PROVE TO A SARE
wT STAEOlERSWewillcreateavirtuouscycleovaluecreationbyachieving
harmonywithourstakeholdersinthelong-termandaimto
increaseouroverallvalue(realizingaplus-sumgame).Wewill
thensharethebeneftsthiscreateswithstakeholders.
Customers
Saetyandsecurity
Enhancementosaety
Eliminationooccurrencesthatcouldmakeour
customerseeluneasy
Improvedcustomersatisaction
Reliabletransportation
User-riendlytimetables,acilities,andsaleschannels
Friendlyservice
Innovativeproductsandservices
Responsetotheaging,decliningpopulationand
theinternationalizationocustomers
Society
Invigorationolocalcommunities
Improvementoourrailwaystationsaswellastownacilities
intheKansaiurbanareatomakeitaconvenient,attractive
placetolive(enhancingthevalueoourrailwaybelts)
ProvisionopublictransportationtomaketheWestJapan
areaaconvenient,attractiveplacetolive
Expansionotourismdemandtobringmorevisitorstothearea
PromotionoCSRandcompliance
Employees
Jobsatisactionandpride
Improvedteamworkthroughsmoothcommunication
Respectorassertive,activemindsetsandopinions
Increasedawarenessocorporateethics
Senseoacceptance
Clarifcationothepurpose,circumstances,anddirection
oeachindividualswork
Transerenceandimprovementotechnicalskills
Shareholders
Ensuredsustainability
Improvementinlong-termoperatingrevenuesand
reductionofxedcosts
Long-termdividendstability
DividendpaymentplansbasedontheconsolidatedDOEratio
Suppliers
Sincerity,airness,andmutualtrust
Guaranteedsaetyandquality,andestablishedcompliance
Victims
Measures to have ourselves accepted
as acting with the best intentions by
the victims of the train accident
JR-WEST
GROUP
CUSTOMERS
EMPLOYEES SOCIETY
SHARE-
HOLDERSSUPPLIERS
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Ew STRATEGES TO REAlzE OR
MAAGEMET VSOWiththeaimocontinuingtoworktowardrealizingour
managementvision,wewillcontinuepursuingthemanagement
goalsandadvancingthestrategiesoutlinedinMedium-Term
ManagementPlan20082012.Atthesametime,theGroupwill
alsoocusitseortsontheimplementationoitsthreenew
strategies:coexistencewithlocalcommunities,innovationby
technology,andthinkingandactingbasedonthefeld.
CoexistencewithLocalCommunities
Asacompanythatoperatesrailwaysasitsmainbusiness,
JR-Westcannotsurviveindependentothecommunitiesin
whichitoperates.Thinkingromtheperspectiveothe
communitiesweoperatein,wewillworktoestablishacompre-
hensivecooperativenetworkowin-winrelationshipsby
strengtheningourtieswithlocalgovernmentsandother
railwaycompanies.
Specifcally,theentireGroupwillworkto:
Enhancethevalueoourrailwaybeltscenteredon
theKansaiurbanarea,
Realizeaplus-sumgameintheWestJapanarea,and
Invigoratelocalcommunitiesthroughtourism
inordertoenrichthelivesothepeopleothecommunitiesin
theseareas.
InnovationbyTechnology
Asweenteraneraodecliningpopulation,JR-Westwill
undertakesuchchallengesasthe:
Transerenceotechnicalskillsandimprovemento
technicalandoperationalskills,
Resolutionoissuesthroughsophisticatedtechnologies,and
Reormotherailwayoperationsystem
toensurethesustainablegrowthotheCompany.
Specifcally,thegoalotherailwayoperationsystemreorm
willbetoapplywidelyusedtechnologies,aswellastechnologiesinthefeldsoinormationand
telecommunications,tourtherthe:
Developmentoanewsaetysystem,
Developmentoanenergy-savingrailwaysystem,and
Innovationotrafccontrolandmaintenancesystemsby
utilizingnetworktechnology
inordertoenhancesaety,lowerthefxedcostsassociated
withrailwayoperations,andreducetheamountolabor
requiredormaintenance.
ThinkingandActingBasedontheField
Employeesutilizingtheskillsthattheyhavelearnedon
thefeldoplayplayamajorroleinenhancingsaetyand
improvingcustomersatisaction.Also,ideastourthercost
reductionsandtechnologicaldevelopmentareotenound
onthefeld.Inrecognizingthis,wehavedefnedchanging
ouroperationalrameworksromtheperspectiveothe
businessfeldasoneoourprincipaldirectives.Accordingly,
werealizethatissuesthatoccuronthefeldarealsoimportant
managementissues,andwewilltackletheseissueshead-on
withrenewedvigor.
Specifcally,basedontheresultsocompanyrevitalization
andreorminitiatives,romtheviewpointso:
Focusingonactualplaces,materials,andpeople
onthefeld,
Solvingproblemsautonomouslyonthefeld,
Solvingproblemsthroughthebottom-upapproach,and
Simpliyingtheprocessodevelopingstrategicmeasures
anddecisionmaking
wewillrebuildoperationalsystemsbasedonthefeld.
WEST JAPAN RAILWAY COMPANY12
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ky SragiS raLiz ur maagm iSi
FACAl OTlOO FOR FSCAl 2013
FinancialIndicators
Consolidatedoperatingrevenues:1,300billion
ConsolidatedEBITDA*:266billion
ConsolidatedROA:3.6%
*EBITDA=Operatingincome+Depreciation
TotalCapitalExpendituresorFiscal2009toFiscal2013
Consolidated:980billion
Non-consolidated:780billion
(saety-relatedcapitalexpenditures:430billion)
SAREOlER RETRS
Weaimtocreateavirtuouscycleovaluecreationbyachieving
harmonywithourstakeholdersinthelong-termandincrease
ouroverallvalue(realizingaplus-sumgame).Totheseends,
weplantooershareholdersrobustreturnsasollows.
Webelieveprovidingshareholderreturnsthatarestable
inthelong-termisanimportantmanagementresponsibility.
Thereore,weareaimingorconsolidatedDOEo3%in
fscal2013,basedontheexpectationthatourprojectsyield
sufcientresults.
Inlinewiththisprojection,weraisedthedividendpayments
orfscal2011rom3,500orboththeinterimandyear-end
dividendsto4,000orboththeinterimandyear-enddividends,
makingortotaldividendpaymentso8,000pershare.
Note:JR-Westmadeastocksplitattherationo1shareto100sharesasoJune30,2011
Steady progression of
the strategies outlined in
Medium-Term Management
Plan 20082012
New strategies
Reinforcing the Foundations
for the Companys
Continued Operation
Developing a railway that
can offer peace of mind and
earn the trust of society
Pursuing the development of a safe,
reliable railway by establishing
a higher level of safety
1
Reforming
Management
Reforming management and
conducting more-thorough
value provision
Innovation by technology6
Thinking and acting based on the field7
Strengthening
Business Foundations
Creating new value for customers,
local communities, and society
Establishing a direct service between
the Sanyo and the Kyushu Shinkansen2
5
Coexistence with local communities
realizing a plus-sum game in
the West Japan area
3 Opening the new Osaka Station City
4
Coexistence with local communities
enhancing the value of our railway belts
centered on the Kansai urban area
Annual Report 2011 13
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pig F Saka Sai Ciy
Usedbyapproximately850,000peopleperday,OsakaStation
isthelargestterminalstationoperatedbytheCompany.Addi-
tionally,withover2.5millionpeopleusingtheacilitiesinthe
surroundingareaonadailybasis,includingthoserelatedtoother
modesotransportation,theOsakaStationrailwaystationcould
beconsideredtheocalpointoWestJapan.Asaresult,weaim
todevelopOsakaStationintoaacilitybefttingitsroleasthe
gatewaytoOsaka,whichinturnwillhelpboosttherevenueso
theentireGroup.Atthesametime,wehopetorevitalizeboththe
areasurroundingOsakaStationaswellastheKansairegionin
general.ThisintegratedplanwasnamedtheOsakaStation
DevelopmentProject,whichwehavesubsequentlyadvanced,
conductinginvestmentstotalingapproximately210billion.On
May4,2011,thisdevelopmentprojectreachedasuccessulend,
markedbythegrandopeningoOsakaStationCity.
ORT GATE BlG
ThenewlyconstructedNorthGateBuilding,locatedonthenorth
sideoOsakaStation,isdividedintoanumberozones,
includingtheDepartmentStoreZone,SpecialtyShopZone,
andOfceZone.
DepartmentStoreZone
TheJROsakaMitsukoshiIsetandepartmentstore,operatedby
consolidatedsubsidiaryWestJapanRailwayIsetanLimited,
occupiesthewestsideotheNorthGateBuildingonthe12
oorsromitssecondbasementoortothe10thabove-groundoor.FollowingtheJRKyotoIsetandepartmentstore,thisisthe
secondstoreoperatedbythissubsidiary,anditistheourth
departmentstorelocatedintheUmedaDistrictoOsaka.While
thetotalareaothesalesoorisonly50,000m2,smallerthan
thatotheotherdepartmentstoresinthesurroundingarea,
iteaturesauniqueatmosphereasthefrstdepartmentstoreto
carryboththeIsetanandMitsukoshinames.Mergingelements
rombothoitsnamesakes,JROsakaMitsukoshiIsetaneatures
anumberouniquelyarrangedareasthatmixtheashion
traditionallyprovidedbyIsetanwiththeculturedandartisticnature
characteristicoMitsukoshi.Inthisway,JROsakaMitsukoshi
Isetanisanentirelynewtypeodepartmentstore,whichisone
othereasonsithasbecomepopularamongshoppers.
SpecialtyShopZone
TheeastsideotheNorthGateBuildingishometotheLUCUA
shoppingcenter,whichislocatedonthe11oorsromthefrst
basementoortothe10thabove-groundoor.Operatedby
consolidatedsubsidiaryJRWestJapanShoppingCenter
DevelopmentCompany,LUCUAisashoppingcenterwith198
commercialtenants,roughlyhalowhicharestoresthatare
eitherthefrstlocationopenedinOsakasUmedaDistrict,the
frstlocationintheKansairegion,orthefrstlocationinallo
Japan.Themaintargetsothisshoppingcenterareashion-
andtrend-consciousworkingwomentowhichthecenter
providesasenseoluxurythatcanbeenjoyedinonesdailylie
andoerstheopportunitytorealizesensitive,sophisticated
liestyles.ThesecharacteristicshaveearnedLUCUAastrong
reputationwithshoppers,aactthatcanbeseeninthesmileso
themanysatisfedcustomersthatflltheshops.
OfceZone
The14oorsromthe14thto27thoorintheupperlevelo
theNorthGateBuildingaredesignatedastheOfceZone,
spanningatotaloorspaceoapproximately21,000m2.Each
oorhasaoorspaceo1,500m2,whichisreeoobstructions
suchaspillars,therebymakingiteasilycustomizedtomeet
theneedsotenants.This,aswellastheconvenienceobeing
directlyconnectedtotherailwaystation,hashelpedthiszone
earnthepraiseothetenantsthatoccupyit.Therearecurrently
novacanciesintheOfceZone.
W FaCiLiiS
OsakaStation
Top-floor Restaurant
Ofce Zone
Service Zone
Entertainment Zone
Specialty Shop Zone
Department Store Zone
Extension
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SOT GATE BlG
LocatedonthesouthsideoOsakaStation,theSouthGate
Buildingisalsodividedintoanumberozones,includingthe
DepartmentStoreZoneandHotelZone.
DepartmentStoreZone
TheSouthGateBuildingsDepartmentStoreZoneiscurrently
occupiedbyDaimaruUmeda.Therecentexpansionothe
SouthGateBuildingincreasedthesalesoorothiszonerom
40,000m2to64,000m2,whileexistingareasothezonewere
renovatedaswell.
HotelZone
TheHotelZoneiscurrentlyoccupiedbyahoteloperatedby
consolidatedsubsidiaryHotelGranviaOsakaCo.,Ltd.Asparto
therecentexpansion,thissubsidiaryopenedarestaurantinthe
LUCUAshoppingcenter,locatedintheSpecialtyShopZoneo
theNorthGateBuilding,andexpandedthelobbyandloungeon
thefrstoorothehotel.Further,inspring2012,itplanstoopen
anexecutivesuiteooronthe27thoorotheSouthGateBuilding.
EVElOPG OPE SARES A COECTG
PASSAGEwAySEACG TE STATOS APPEAl
WehavedevelopedeightopensquareswithinOsakaStationCity
inthehopeoallowinggreateraccesstoallthatithastooer,
includingaccesstothestation,shopping,andentertainment.
WealsobelievethiswillhelpOsakaStationCitybetteroer
asenseorelaxation,whilealsomaintainingaleveloenergy.
Inaddition,wehavecreatedundergroundandelevatedpassage-
ways(ashighasthesecondooroabuilding)thatextendinall
directionsinordertobetterconnectOsakaStationCitywithits
surroundingarea.Theseconnectingpassagewayshelpease
theprocessochangingtoorromprivaterailwayorsubwaylines
aswellasoersmoothaccesstoandromthesurroundingarea.
TheCompanyhasalsorenovatedtheacilitiesotherailway
station,creatingnewticketgatesandconcourses,aswellasbuilt
dome-shapedroos,whicharethesymbolothisdevelopment
project,overtheplatorms.Moreover,manymeasureshavebeen
takentoensurethatOsakaStationCityisriendlytowardthe
environment,includingtheinstallationosolarpowergeneratorstoutilizenaturalenergy.Theefcientuseoenergyispromoted
bytakingadvantageodrymistcoolingsystemstoreducethe
needorair
conditioningand
installingdouble
glazedwindows
inofcebuildingsto
providebetter
insulation.Inaddition,
eectiveuseismadeo
collectedrainwater.Also,we
haveplacedgarbagereciprocals
withdivisionsordierenttypeso
garbageonplatormstopromoterecycling
andareactivelyreusingresourcestolowertheenvironmental
impactoOsakaStationCity.
MPROVG RAlwAy ACCESS TO OSAA
InMarch2011,JR-Westreviseditstimetableswiththeaimo
encouragingpeopleromareasthroughoutitsserviceareatovisit
Osakabytrain.Specialrapidservicesonweekendsandpublic
holidaysusingtrainswith12carswereintroducedontheline
spanningromHimejitoMaibara.Additionally,thenumberorapid
servicesconnectingdirectlytoOsakaStationromTakarazuka,
KansaiInternationalAirport,andNarawereincreasedromtwo
trainsperhourtoourtrainsperhourduringthedaytime.
COOPERATG wT lOCAl BSESSES TO
ATTRACT CSTOMERS
TheareasurroundingOsakaStationisdenselypopulatedby
businesses.Whilethesebusinessesserveascompetitionor
theGroupscommercialacilitiesinthisarea,wethinkitis
importantthatweworktogetherwiththesebusinessesinorder
toimprovetheappealothisarea,therebyattractmorevisitors
tothearea.TheCompanyisamemberotheUmekitaPhase1
DevelopmentAreaProjectTMOCommittee,whichconsistso
threecompaniesinadditiontotheCompany:HankyuCorporate,
HanshinElectricRailwayCo.,Ltd.,andMitsubishiEstateCo.,
Ltd.Togetherwiththesecompanies,JR-Westhasestablished
theUmedaAreaManagementOrganization.Inaddition,italso
jointlydevelopsareamaps,activelyholdsanumberopromo-
tionalevents,communicatesinormationregardingtheseeventsaswellasthedevelopmentprojectitselviatheInternet,
andconductsotherareamanagementactivities.
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dirC SriCS Wih h kyuShu ShikaS Li
OnMarch12,2011,inconjunctionwiththecommencemento
operationsoallsectorsotheKyushuShinkansen,theCompany
beganoeringdirectservicesbetweentheSanyoandKyushu
Shinkansenlines.Usingthesenewdirectservices,passengers
cantravelbetweenShin-OsakaStationandKago-shima-Chuo
Stationinaslittleas3hoursand45minutes,andbetween
Shin-OsakaStationandKumamotoStationinaslittleas2hours
and59minutes.Unortunately,thestartotheseserviceswas
overshadowedbytheGreatEastJapanEarthquake,which
occurredonMarch11,2011,thedaybeoretheopeningceremony.
Despitethecircumstancesinwhichtheserviceswerelaunched,
weareaimingtooerahigherqualityShinkansen-travelexperi-
encethroughthesedirectservicesbyintroducingnewrolling
stockbasedonthestate-o-the-art,highlyreliableN700Series
trains.Atthesametime,weareworkingtostimulatetourism
demandinKyushubyadvertisingtheappealoKyushusvarious
sightseeingspots.Duetotheseandothereorts,thedirect
serviceshaveproducednotableresultsinthemonthsater
beinglaunched.
Further,welaunchedtheonlinereservationservicee5489
inMarch2011.Thisserviceincreasestheconvenienceorailway
travelbyallowingpassengerstoreserveticketsonlineorthe
MizuhoandSakuraShinkansenservices,whichareusedonthe
newdirectservices,aswellasortheCompanystraditional
NozomiandHikariShinkansenservices.JR-Westisalsotaking
stepstoensurethatitsShinkansenservicesoersufcientprice
competitivenessrelativetoairlines.Forexample,thenewly
introducede-earlyreservationdiscountticketseaturereduced
prices.Usingthesetickets,apassengercantravelbetween
Shin-OsakaandKagoshima-Chuostationsor17,000oneway,
andbetweenShin-OsakaandKumamotostationsor14,400
oneway.
Goingorward,theCompanywillimplementanumbero
initiativesgearedtowardboostingusageotheSanyoShinkansen.
Thesewillincludeconductingpromotionaltourismcampaigns
incoordinationwithlocalgovernmentsandraisingthedegreeo
cooperationwithJR-Kysuhuwiththeaimoencouragingmore
exchangesbetweenKyushuandmajorareasinWestJapan,
suchastheKyotoOsaka Kobearea,Okayama,andHiroshima.
Further,weintendtorevisetimetablesnextspringtointroduce
newrollingstockandincreasethenumberotrainsoering
directservices.Throughsucheorts,ouraimistosignifcantly
improveourmarketshareothecombinedairtravelrailway
market,increasingourshareotravelbetweentheKyoto-Osaka-
KobeareaandKagoshimaromthefscal2010s10%toaround
50%,andincreasingourshareotravelbetweentheKyoto-
Osaka-KobeareaandKumamotoromfscal2010s32%to
around60%.
Atotalinvestmentoapproximately100billionisestimated
tobenecessarytoimplementtheseinitiatives,themajorityo
whichwillbeinvestedinnewrollingstock.
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Okayama
Hiroshima
Shin-Osaka
Shin-Kobe
HakataKokura
Shin-Yamaguchi
Opened inMarch 2004
Opened inMarch 2011 HakataShin-Osaka Approx. 644 km
HakataShin-YatsushiroApprox. 151km
Shin-Yatsushiro
Kagoshima-ChuoApprox. 138 km
HakataKagoshima-Chuo Approx. 289 km
Kurume
AsaTokuyama
Mihara
Aioi
Himeji
Fukuyama
Shin-IwakuniShin-
Iwakuni
Shin-Onomichi
Shin-Kurashiki
Nishi-AkashiNishi-
AkashiHigashi-
Hiroshima
Shin-Shimonoseki
ChikugoFunagoya
Kumamoto
Shin-MinamataIzumi
Sendai
Kagoshima-Chuo
Shin-Tosu
Shin-Omuta
Shin-Tamana
Shin-Yatsushiro Kyushu Shinkansen (JR-Kyushu)
Sanyo Shinkansen (JR-West)
Shar F paSSgr mark: ShikaS S. airLiS (FiSCaL 2010)
rlws alnes otl
KyotoOsakaKobe
areaKagoshima
Numberopassengers
(Marketshare)
341people/day
(10%)
2,980people/day
(90%)
3,321people/day
KyotoOsakaKobe
areaKumamoto
Numberopassengers
(Marketshare)
750people/day
(32%)
1,614people/day
(68%)
2,364people/day
Source:Surveyonregionalpassengerow,MinistryoLand,InrastructureandTransport
SriC, daiLy FrquCy, raL im, Far
Service Frequency
Travel Time
(Fastest service) Fare
Shin-Osaka
Kagoshima-Chuo
Mizuho 4roundtrips
perday
3h45m 21,600
(17,000withe-earlyreservationdiscountticket)
Sakura 10.5roundtrips
perday
4h10m 21,300
(17,000withe-earlyreservationdiscountticket)
Shin-Osaka
Kumamoto
Mizuho 4roundtrips
perday
2h59m 18,320
(14,400withe-earlyreservationdiscountticket)
Sakura 11roundtrips
perday
3h20m 18,020
(14,400withe-earlyreservationdiscountticket)
*TheastestMizuhoservicerunsatotaloourtimesperdayinthemorningandevening.
raL im (rduCi)
Hiroshima Okayama Shin-Osaka
Kumamoto 1h37m(52m) 2h14m(52m) 2h59m(58m)
Kagoshima-Chuo 2h23m(71m) 2h59m(72m) 3h45m(77m)
Note:TraveltimesareortheastestMizuhoShinkansenservice.
Timesinparenthesesrepresentthereductionintraveltimeollowingtheestablishmentodirectservices.
Annual Report 2011 17
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Operating Revenues
Operating Income (right)
07 08 09 10 11
1,000
800
600
400
0
200
150
100
50
0
praig rSuLS By BuSiSS Sgm
the eveopment ofthe Communit we Serve.
OurTransportationNetworkcontributesto
JR-WestsTransportationOperationssegmentconsistsorailwayoperations
andsmall-scalebusanderryservices.Itsrailwayoperationsencompass18
preecturesinthewesternhaloJapansmainislandoHonshuandthe
northerntipoKyushu,coveringatotalserviceareaoapproximately104,000
squarekilometers.Theserviceareahasapopulationoapproximately43
millionpeople,equivalentto34%othepopulationoJapan.Therailway
networkcomprisesatotalo1,222railwaystations,withanoperatingroute
lengtho5,012.7kilometers,almost20%opassengerrailwaykilometeragein
Japan.ThisnetworkincludestheSanyoShinkansen,ahigh-speedintercity
railwayline;theUrbanNetwork,servingtheKyotoOsakaKobemetropolitan
area;andotherconventionalrailwaylines(excludingthethreeJR-Westbranch
ofcesinKyoto,Osaka,andKobe).Infscal2011,operatingrevenuesinthis
segmentwereup1.1%yearonyear,to806.4billion.Whiledemandor
domestictourismdeclinedollowingtheGreatEastJapanEarthquake,which
occurredonMarch11,2011,thisdeclinewasmorethanosetbytherevenues
generatedduetothestrongeconomicrecoverytrendseenupuntiltheearth-
quake,whichcontributedtoanoverallriseinrevenues.Operatingincomealso
increased,rising35.3%,to61.1billion.Thiswaslargelyattributabletothe
signifcantdecreaseinpersonnelexpensesasaresultothecompletionothe
amortizationonetretirementbeneftobligationattransitionoapproximately30.0billion.
TransportationOperations
praig rSuLS
Billionsoyen
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TheSanyoShinkansenisahigh-speed
intercitypassengerservicebetween
Shin-OsakaStationinOsakaandHakata
StationinFukuokainnorthernKyushu.
Thelinerunsthroughseveralmajorcities
inwesternJapan,includingKobe,
Okayama,Hiroshima,andKitakyushu.Ithasatotaloperatingkilometerageo
644.0kilometersandhas19railway
stations,includingShin-OsakaStation.
JR-Westownstheentiretyotherailway
acilitiesrelatedtotheexistingSanyo
Shinkansen,andwiththeexception
oShin-OsakaStation(ownedby
JR-Central),operatesallotheother
18railwaystations.
TheservicesontheSanyoShinkan-
senincludetheGroupsNozomi,Hikari,
andKodamaservices,whichithas
oeredorsometime.Oparticular
interestarethedirectNozomiservices
operatedbyCentralJapanRailway
Company(JR-Central),whichlinkTokyo
StationandShin-OsakaStation.These
Nozomiservicesallowpassengersto
travelontheTokaidoShinkansenrom
TokyoorNagoyatothemajorrailway
stationsalongtheSanyoShinkansen
Okayama,Hiroshima,andHakatawith-
outhavingtochangetrains.Inaddition,
ollowingtheMarch12commencementooperationsonalllinesotheKyushu
Shinkansen,JR-Westlaunchedthe
MizuhoandSakuraShinkansenservices,
whichtraveldirectlybetweentheSanyo
ShinkansenandKyushuShinkansen
lines.Thesenewservicesenablecus-
tomerstotravelbetweenShin-Osaka
andKagoshima-Chuoinaslittleas3
hoursand45minutes.
Fisca 2011 Resuts
Infscal2011,theCompanywasorced
toacetheeectsotheGreatEast
JapanEarthquake,whichoccurredin
March2011.However,itsimpactwas
osetbythebeneftsoanumbero
initiativesimplementedearlierinthe
fscalyear.Theseincludedthelauncho
directservicesbetweentheSanyo
ShinkansenandKyushuShinkansen
lines,whichaccompaniedthecom-
mencementooperationsonalllineso
theKyushuShinkansen,aswellas
promotionalcampaignshighlightingthe
comortotravelingonthenewN700Seriesalongwiththeconvenienceand
priceadvantagesotheExpressReser-
vationandEX-ICsystems.Additionally,
therewasgrowthinrevenuesduetothe
absenceothenewinuenzaepidemic,
whichcausedadeclineinrevenues
duringthefrsthalothepreviousfscal
year.Asaresult,totalpassenger-kilome-
tersortheSanyoShinkansenincreased
4.9%yearonyear,to15,546million
kilometers.Likewise,transportation
revenueswereup11.4billion,or3.7%,
to323.9billion.
Tokyo
Nagoya
Shin-Osaka
Osaka
KyotoOkayama
Shin-Kobe
Hiroshima
Kumamoto
Kagoshima-Chuo
Hakata(Fukuoka)
raSprai ruSSanyo Shinkansen
Billionsoyen/Millionsopassengers
Transportation Revenues
Number of Passengers (right)
07 08 09 10 11
400
350
300
250
0
80
70
60
50
0
Sno Snnsen
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praig rSuLS By BuSiSS Sgm
TheUrbanNetworkprovidespassenger
servicesorthedenselypopulated
metropolisesandsurroundingareaso
Kyoto,Osaka,andKobe.Ithasan
operatingroutelengtho622.0kilometers(943.0kilometersincludingthethree
JR-WestbranchofcesinKyoto,Osaka,
andKobe),ormingacomprehensive
networkstretchingacrosstheentire
KyotoOsakaKoberegion.
TheUrbanNetworkareaincludes
thesectionotheFukuchiyamaLine
betweenTsukaguchiStationandAmaga-
sakiStation,thelocationwhereJR-West
causedaterribleaccidentonApril25,
2005,resultinginasubstantiallossothe
trustwehavebuiltwithcustomersand
society.Werecognizethatredoublingour
eortstoprioritizesaetyandregaining
thattrustisoneoourhighestmanage-
mentpriorities.
Further,therenovationoOsaka
StationthelargestJR-West-operated
terminalstationthatweundertookin
2003reachedcompletion,andwewere
subsequentlyabletoholdthegrand
openingoOsakaStationCityonMay4,
2011.OsakaStationservesasthegate-
waytotheKansairegionaswellasthe
gatewayintoOsakaitsel.Forthisreason,
wehopethatOsakaStationCitywillserve
asanewlandmarkinOsaka,alandmark
thatembodiesasenseoairandso-
phisticationbefttingitsroleasagateway.
Thisstrongdesirewasakeyactorinour
namingoOsakaStationCity.Further,itis
ourwishthatitwillcometobelovedbyall
whovisititasacitythatisbothhighly
relaxingandconvenient.
Fisca 2011 Resuts
Intransportationoperations,werevised
ourtimetablesinconsiderationothe
openingoOsakaStationCityinMarch
2011,increasingthenumberorapid
servicesconnectingdirectlytoOsakaStationandbeginningoperationo
specialrapidservicesusingtrainswith12
carsonweekendsandpublicholidays.
Inmarketinginitiatives,weworkedto
urtherenhancerailwayconvenienceby
launchingtheICOCAdirectcommuter
passserviceincooperationwithKeihan
ElectricRailwayCo.,Ltd.
Incustomerserviceinitiatives,we
bolsteredeortstohelppassengersuse
therailwaymoresaelyandmorecom-
ortably,includingtheuseovideoon
stationdisplaysandin-cardisplaysto
provideinormationorpassengers.We
alsoconductedcampaignstoraise
awarenessoeortstopreventgroping.
Additionally,aspartotherenovation
oOsakaStation,weopenedaportiono
astructurebuiltoverthetracksor
passengerstousewhenchangingtrains
inNovember2010.Thisstructurewas
ullycompletedinApril2011.
InFebruary2011,weconcludeda
comprehensivepartnershipagreement
withShigaPreecture.Underthisagree-
ment,wewillpromoteinitiativesgeared
towarddeepeningtheextentoour
coexistencewithlocalcommunities,
throughsucheortsasosteringthe
developmentourbanareasaroundtrain
stations.
Infscal2011,wesawrevenuein-
creaseasaresultoabsenceothenew
inuenzaepidemic,whichcauseda
declineinrevenuesduringthefrsthalo
thepreviousfscalyear.Inaddition,
JR-Westworkedincooperationwithlocal
governments,travelagents,andotherJR
companiestostimulatedemandor
domestictourismthroughvariouspro-
motionalcampaignssuchastheNaraDestinationCampaign.However,the
persistenceotheoverallslumpinrailway
usagewascompoundedbytheimpact
otheGreatEastJapanEarthquake,
whichoccurredinMarch2011.Asa
result,totalpassenger-kilometersorthe
UrbanNetwork(includingthethree
JR-WestbranchofcesinKyoto,Osaka,
andKobe)decreased0.2%yearonyear,
to28,047millionkilometers,whiletrans-
portationrevenuesweredown1.7
billion,or0.6%,to284.4billion.
ubn etwo Sevce
raSprai ruSUrban Network Service
Billionsoyen/Millionsopassengers
Transportation Revenues
Number of Passengers (right)
07 08 09 10 11
350
300
250
200
0
1,500
1,400
1,300
1,200
0
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Omishiotsu
KusatsuYamashina
Nara
Oji
Takada
Tsuge
KyotoOsakaKobe Area
Urban Network
Kyobashi
Osaka Tennoji
Wakayama
Kansai Airport
Kobe
Amagasaki
Shin-Kobe
Nishi-Akashi
Kakogawa
Tanigawa
HimejiAioiShin-Osaka
Kyoto
Maibara
Kameyama
Boundary Stations between
JR-West and Other JR Companies
Shinkansen Line (Bullet Train)
Intercity Lines
Regional Lines
Osaka Loop Line
JR Kobe Line (OsakaHimeji)
JR Kyoto Line (OsakaKyoto)
Biwako Line (KyotoNagahama)
JR Tozai Line (KyobashiAmagasaki)
JR Yumesaki Line (Nishi-KujoSakurajima)
JR Takarazuka Line (OsakaSasayamaguchi)
Sagano Line (KyotoSonobe)
Gakkentoshi Line (KyobashiKizu)
Nara Line (KyotoKizu)
Yamatoji Line (JR-Namba Kamo)
Hanwa Line (TennojiWakayama)
Kansai Airport Line (HinenoKansai Airport)
Osaka Higashi LIne (HanatenKyuhoji)
te Conventonl Lnes
JR-Westsotherconventionallines
compriseintercitytransportprovidedby
limitedexpressandexpressservices,
regionaltransportorcommutersand
studentsinandaroundregionalhubcities
suchasHiroshimaandOkayama,and
locallineswithlowtransportdensity.The
otherconventionallineshaveanoperat-
ingroutelengtho3,425.7kilometers.
Theoperatingenvironmentorother
conventionallinescontinuestobe
difcultduetothedecliningpopulationo
theareasitserves.However,considering
thatthisnetworkplaysaroleasaeeder
orShinkansenservicesaswellas
unctionsasavitalpartotheoverall
JR-Westrailwaynetwork,weareworking
toprovidemorecommunityoriented
servicesandundertakeothermanage-menteorts,whileplacingpriorityon
ensuringsaety.
Fisca 2011 Resuts
Intransportationoperations,weimple-
mentedseveralmeasuresgearedtoward
improvingtheconvenienceotrain
services,suchastheNovember2010
introductionotheHamakazelimited
expressandtheDecember2010introduc-
tiononewtrainservicesinthesuburbso
theKyotoOsakaKobemetropolitan
area.Otherinitiativesincludedtheintro-
ductiononew-modeltrainswithexcep-
tionalsaetyandcomortonlimited
expressservicesthatconnectOsakaand
KyototothenorthernKinkiregion.
Insalesinitiatives,weworkedto
stimulatedemandortourismthroughthe
JapaneseBeautyHokurikucampaignaswellasvariousotherpromotionalcam-
paignsconductedincooperationwith
localgovernments,travelagents,and
otherJRcompanies.
However,thedeclineinrail-side
populationscoupledwiththeimpacto
theGreatEastJapanEarthquakeresulted
inthetotalpassenger-kilometersorother
conventionallinesdecreasing0.6%year
onyear,to9,020millionkilometers,while
transportationrevenuesweredown1.7
billion,or1.4%,to119.6billion.
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praig rSuLS By BuSiSS Sgm
Bs n Fe Sevces
TheTransportationOperationssegment
alsoincludesbusanderryservices.In
busservices,weenhancedconvenience
orcustomersthroughrevisedtimetables
andmore-exibleareschedules.
Inerryservices(theMiyajimaLine),we
heldspecialeventstocommemoratethe
frstanniversaryoourerryoperations,
marketedourerryservicetotravel
companies,andtookotherstepsto
increaserevenue.
Inrailwayoperations,ollowingthe
commencementoservicesonalllineso
theKyushuShinkanseninMarch2011,
JR-Westwillestablishconvenienttime-
tablesincorporatingdirect-service
operationsontheSanyoShinkansenand
KyushuShinkansenlines.Itwillalso
launchtheonlinereservationservice
e5489,andcontinuetotakeothersteps
toenhancethecompetitivenessoits
Shinkansenservicesbyensuringthe
provisionohigh-qualitycustomerservice
andaithullyreportinginormation.In
addition,wewillworktocoordinatewith
localorganizations,promoteregional
exchange,generatedemandortourism
throughsuchmeansasattractingoreign
visitorstoJapan,andbolsterourinorma-
tioninrastructure.Inregardtotranspor-
tationICcards(smartcards),JR-West
willexpandallianceswithprivaterailway
operatorsandaddresstheissuesstanding
inthewayothedevelopmentoservices
thatarecanbeusedreciprocallybetween
railwayoperatorsnationwide.Wewillalso
implementothermeasurestoenhance
customerservice,includingstrengthening
eortstoincorporatecustomereedback
inmanagementstrategies,osteringa
strongcustomerservicemindsetamong
employees,improvingthequalityothe
customerserviceprovided,aswellas
workinginconjunctionwithlocalgovern-
mentsandotherorganizationstomake
ourstationsmoreaccessiblewith
barrierreeacilities.
Fuur iiiaiS i raSprai praiS
iCCa iC C
UseotheICOCAnon-contactICcard,aserviceintroducedin
theUrbanNetworkareainNovember2003,hassteadilyincreased,
withthenumberocardsissuedreaching6.01millionwithinthe
frstseven-and-a-halyearsoitslaunch.InAugust2004,we
beganoeringreciprocalusewiththeSuicaICcard,issuedby
EastJapanRailwayCompany(JR-East),andinJanuary2006,
webeganoeringreciprocalusewiththePiTaPaICcard,
issuedbytheSuruttoKansaiAssociation,anorganization
composedopublicandprivaterailwayoperatorsintheKansai
region.Wehavealsosteadilybroadenedthegeographicalarea
inwhichtheICOCAICcardcanbeused,introducingittothe
OkayamaandHiroshimaareasromSeptember2007,and
oeringinteroperabilitywithCentralJapanRailwayCompany(JR-Central)sTOICAICcardromMarch2008.Inaddition,in
December2009,webegandiscussionsontie-upserviceswith
theSuruttoKansaiAssociationutilizingICcardpassenger
tickets,reachinganagreementthataimstourtherenhance
railwaypassengerconveniencebybettercoordinatingservices.
Also,tocoincidewiththeFebruary2006launchothe
J-WESTCard,webeganissuingtheSMARTICOCAICcard,
whichallowscardholderstoaddmoneytotheirICcardwithout
usingcash.WiththeICOCAelectronicmoney(e-money)
servicelaunchedinOctober2005,weareworkingtourther
expandthenumberostoresincitiesandtownswherethe
servicecanbeused,suchasinmajorconveniencestoreand
restaurantchains.Previously,inMarch2008,webeganrecipro-
calusewithJR-EastsSuicae-moneyservice,andinMarch
2010,wecommencedreciprocalusewithJR-CentralsTOICA
ICcard.Further,inMarch2011,webeganoeringICOCA
servicesthatcanbeusedreciprocallywithKyushuRailwayCompany(JR-Kyushu)sSUGOCAservice.Thesemeasures
aredesignedtoenhanceICOCAICcarduserconveniencein
combinationwithpromotingusageonrailwayservices.
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JR-WestsNon-TransportationOperationssegmentcomprisesthreeoperations:
SalesoGoodsandFoodServices,RealEstateBusiness,andOtherBusinesses.
ThoseoperationscontributetothesustainablegrowthotheGroupasawholeby
vigorouslytakingadvantageotheirassets,improvingservicesorcustomersusing
railwayservicesandcustomersinareasalongsiderailwaylines,aswellasproviding
high-qualityservicesthataresaeandreliabletourtherincreasetheappealo
railwaystationsandearntheincreasedtrustocustomers.TheRailwayOperations
HeadquartersandtheBusinessDevelopmentHeadquarterswillincreasethevalueo
itsrailwaybeltsthroughinitiativesthatentailcollaborationwithlocalcommunitiesto
developindividualrailwaystationsandtheirsurroundingareas.Indevelopment
initiatives,ourbasicapproachistoclariymanagementresponsibilityinorderto
accelerateoperationaldevelopmentandpursuedevelopmentthroughGroupcompanies.
Inaccordancewiththatapproach,wewilldevelopcommercialacilitiesinandaround
railwaystationsaswellasareasbetweenrailwaystations,andconductoperations
thatuseidlelandorthedevelopmentandsalesocondominiums.Also,inorderto
osterearningsmainstaysorthenextgeneration,JR-Westisurtheringinitiativesto
createnewbusinessesthroughcollaborationsbothinsideandoutsidetheGroup.
Non-TransportationOperations
praig rSuLS
Billionsoyen
Operating Revenues
Operating Income (right)
07 08 09 10 11
500
400
300
200
100
0
50
40
30
20
10
0
Sles of goos n Foo Sevces
JR-Westsretailservices,centeredon
railwaypassengers,consistoconve-
niencestores,specialtystores,andood
andbeverageoutletslocatedinand
aroundstationbuildings,aswellasthe
JRKyotoIsetandepartmentstore.
Fisca 2011 Resuts
Throughoutfscal2010,WestJapan
RailwayIsetanLimited,themainoperator
othenewJROsakaMitsukoshiIsetan
departmentstoreinthenewlyopened
NorthGateBuilding,continuedtoad-
vancepreparationsorthestoresMay
2011opening.Wealsocontinuedeorts
tomakeourstationsevenmoreattrac-
tive.Thisincludedopeningnewretail
outletsandrestaurantsinOsakaStation
andHakataStationollowingstation
renovations,aswellastheintegrated
developmentandopeningoshops
insideNadaStation,includingthesmall-
scaleconveniencestoreDaily-Inaswell
asthecaeandbakeryTHIRD.
However,regardlessotheseeorts,
operatingrevenuesinSalesoGoods
andFoodServicesweredown0.3%year,
to201.3billion.Thedecreasewas
primarilyattributabletothedeclineo
revenuesinitswholesaleoperations.
Conversely,operatingincomewasup
13.0%,to3.5billion,asaresultosuch
actorsaslowerpersonnelexpenses.
praig rSuLS
Billionsoyen
Operating Revenues
Operating Income (right)
07 08 09 10 11
250
200
150
100
50
0
10
8
6
4
2
0
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praig rSuLS By BuSiSS Sgm
rel stte Bsness
JR-WestsRealEstateBusinessconsists
othemanagementoshoppingcenters
instationbuildingsandotheracilities,
theoperationolargestationbuildingsat
terminalrailwaystations,thedevelop-
mentocommercialacilitiesnearrailway
stationareasandunderneathelevated
tracks,andrealestatesalesandleasing
operationsorresidentialandurban
developmentocusedonrailwaylines.
Fisca 2011 Resuts
Infscal2011,JR-Westadvanceddevel-
opmentprojectsinitsstationsandtheir
surroundingareas,includingopening
theJROjiStationNKBuilding,which
primarilycontainsrestaurants,and
theJRTamatsukuriStationNKBuilding,
whichhousesseveralhealthclinics.
Additionally,weopenedtheVIERANara
commercialacilitylocatedunderneath
theelevatedtracksatNaraStation;the
PLiErestaurantandgitcenters,which
arebelowtheelevatedtracksatHimeji
Station;andthenewRintoashionstore
intheKanazawa100bangaiashion
shoppingzoneatKanazawaStation.
InregardtotheOsakaStationDevelop-
mentProject,weadvancedpreparations
ortheMay2011grandopeningoOsaka
StationCity.Aspartothesepreparations,
weopenedtheSouthGateBuildingin
March2011.Also,provisionsweremade
intheNorthGateBuildingtoprepareor
theopeningotheLUCUAspecialtyshop
zone.Further,weworkedincooperation
withlocalbusinessesaroundOsaka
Stationinordertopromotebetterarea
management,withthegoaloinvigorating
theareasurroundingthestation.Also,we
encouragedthedevelopmentocondo-
miniumsontheormersitesocompany
housing.IntheHiroshimaarea,we
mergedtwoconsolidatedsubsidiariesin
April2010,whichoperateshopping
centers,inthehopeourtherboosting
theircompetitivenessandincreasingthe
overallstrengthotheseoperations.
Asaresult,operatingrevenuesinthe
RealEstateBusinessincreased6.8%,to
75.7billion,whileoperatingincomeell
1.2%,to22.2billion.
praig rSuLSBillionsoyen
Operating Revenues
Operating Income (right)
07 08 09 10 11
100
80
60
40
20
0
30
24
18
12
6
0
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praig rSuLSBillionsoyen
Operating Revenues
Operating Income (right)
07 08 09 10 11
150
120
90
60
30
0
15
12
9
6
3
0
te Bsnesses
JR-WestsOtherBusinessesconsisto
thetravelagencybusinessoperatedby
NipponTravelAgency,thehotelbusiness
centeredontheHotelGranviaKyoto,
anadvertisingagencybusiness,mainte-
nanceandengineeringservices,and
otherbusinessestoacilitatethesmooth
andefcientoperationothemainstay
railwaybusiness.
Fisca 2011 Resuts
Inthehotelbusiness,werenovated
restaurantacilities,heldvarious
promotionalevents,andimplemented
otherinitiativesgearedtowardincreasing
revenues.Inthetravelagencybusiness,
wetargetedsalesgrowthbyenhancing
ourlineupotravelpackagessold
throughitsonlinesalessystemand
improvingtheconvenienceothissystem
whilealsoexpandingourlineupo
productsthatutilizeourrailwaynetworks.
Inaddition,webeganacceptingapplica-
tionsortheOsakaStationCityJ-WEST
Card,andtookotherstepstoincrease
thenumberocardholders.Inregardto
ourICOCAe-moneyservice,wecom-
mencedreciprocalusewithJR-Kyushus
SUGOCAcard.Also,weworkedto
increasethenumberoopportunitiesor
thisservicetobeusedaroundtown,
makingitusableatmajorconvenience
storechainsaswellasorpurchasing
ticketstoeventsandtouristattractions.
Asaresult,operatingrevenuesin
OtherBusinessesincreased8.6%year
onyear,to129.9billion,whileoperating
incomewasup43.8%,to9.6billion.
InSalesoGoodsandFoodServicesas
wellasRealEstateBusiness,JR-West
willimplementmeasurestourther
enhancethevalueoourrailwaybelts,
withtherailwaydivisionworkingin
cooperationwithlocalgovernmentsand
communitiestomaximizeassetefciency.
Inaddition,withtheaimoutilizingtheull
potentialostationsandtheirsurrounding
areaswhilealsoinvigoratingthearea
betweenstationswewillstrivetocreate
communitiescenteredonstationsoering
comprehensiveservicesanddevelop
surroundingareasprovidingample
convenienceandanattractiveplacetolive.
Further,wewillalsoworktobringout
theullpotentialoOsakaStationCity
andconductareamanagementorthe
areaaroundOsakaStation.Inregardto
theJ-WESTCard,JR-Westwillincrease
thenumberoJ-WESTCardcardholders,
expandthenumberostoreswherethe
ICOCAe-moneyservicecanbeused,
andtakeotherstepstoenhanceconve-
nienceorcustomersinconjunctionwith
theiruseotheCompanysrailwayservice.
Fuur iiiaiS i -raSprai praiS
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Crpra SCiaL rSpSiBiLiy
OurAimis
to Communicate ith Societ and Promoteiaogue ith Stakehoders.
Corporate Phiosoph
TheJR-WestCorporatePhilosophydescribesthedirectionin
whichtheJR-WestGroupshouldmovetowardaswellasidentifes
thecorporatevaluesitwishesallemployeesandexecutiveofcers
toapplyintheirday-to-daywork.Itembodiestheunwavering
devotionoeachJR-Westemployeeandexecutiveofcerto
reectupontheFukuchiyamaLineaccidentwithsincerityand
theirunwaveringdevotiontorebuildJR-Westaccordingly.Italso
servesasamessagetoallitsstakeholders,includingsocietyat
large,thatcommunicatesthisunwaveringdevotion.
ThetitleoCorporatePhilosophyandtheuseoWe
placedatthebeginningoeachitemothisphilosophyrepre-
sentthecombineddeterminationoalloouremployeesand
executiveofcers.Simultaneously,thesewordsarethedriving
orcebehindtheactionsoeachemployee,eachexecutive
ofcer,andthecompanythateachotheseemployeesand
executiveofcerscometogethertoorm.
Corporate Philosophy
1 We,beingconsciousoourresponsibilityorprotectingthetruly
preciouslivesoourcustomers,andincessantlyactingonthe
basisosaetyfrst,willbuildarailwaythatassuresourcustom-
ersoitssaetyandreliability.
2We,withacentralocusonrailwaybusiness,willulfllthe
expectationsoourcustomers,shareholders,employeesand
theiramiliesbysupportingtheliestylesoourcustomers,
andachievingsustainablegrowthintotheuture.
3We,valuinginteractionwithcustomers,andconsideringour
businessromourcustomersperspective,willprovidecomort-
ableservicesthatsatisyourcustomers.
4We,togetherwithourgroupcompanies,willconsistently
improveourservicequalitybyenhancingtechnologyand
expertisethroughdailyeortsandpractices.
5We,deepeningmutualunderstandingandrespectingeach
individual,willstrivetocreateacompanyatwhichemployees
fndjobsatisactionandinwhichtheytakepride.
6We,actinginasincereandairmannerincompliancewith
thespiritolegalimperatives,andworkingtoenhance
corporateethics,willseektobeacompanytrustedby
communitiesandsociety.
Basic Approach to CSR
JR-Westsresponsibilityasagoodcorporatecitizenistowork
towardrealizingitsCorporatePhilosophy.Inordertounderpin
andosterthekeyvaluessetoutinitsCorporatePhilosophy,
andinlightosocietysexpectations,JR-Westhasestablished
priorityareasrelatingtoitsCSRactivities.TheCompanysmost
importantresponsibilityistoensurethesaetyoitscustomers
andemployeesalike.Theotherourpriorityareasinclude
customersatisaction,theglobalenvironment,humanresourc-
es/employeesatisaction,andcoexistencewithlocalcommu-
nities.JR-Westrecognizesthesefveareasasareaswhereit
canmakeuniquecontributions.JR-Westalsoprioritizescompli-
ance,crisismanagement,disclosure,inormationsecurity,
humanrights,andmaterialsprocurement.JR-Westrecognizes
thesesixareasastheoundationsoitsoperations.Going
orward,JR-Westintendstocommunicatesincerelywithsociety
andactivelypromotedialoguewithallitsstakeholders.Atthe
sametime,theCompanywillheightenthequalityoitsbusiness
activitiesromthestandpointoitsCSR-relatedactivities.
Throughthoseeorts,JR-Westhopestomeetsocietysexpec-
tationsandtoenhanceitslevelosaetyandreliabilitywhile
realizingsustainablegrowth.
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Sstem to Promote CSR
ToenhanceourabilitytopromoteCSRasoneomanagements
coretasks,weestablishedtheCSRPromotionCommitteein
June2006.Thepresidentservesaschairpersonothecommit-
tee,whileitsmembershipcomprisesull-timedirectors,ull-time
corporateauditors,andgeneralmanagersoheadquarter
divisions.WealsoestablishedtheCSROfcewithinthe
CorporatePlanningHeadquartersastheexecutiveofceo
theCSRPromotionCommittee.
Withtheexceptionotheparamountresponsibilityosaety
whichiscoveredbyaseparatesystemtheCSRPromotionCom-
mitteeismandatedtocomprehensivelyexamine10feldsroma
CSRperspectiveandimplementimprovementswherenecessary.
Stakeholders
Corporate Philosophy
Sustainable growth
JR-West
CSR Initiatives
Customer
satisfaction
Global
environment
Human
resources /
Employee
satisfaction
Social
contribution
SafetyParamount
responsibility
Information security / Disclosure / Increasing awareness of human rights /Materials procurement / Compliance / Crisis management /
Supporting and cultivating values that are important in CSR initiatives
Each employee thinks and acts on their own initiative
Safety and reliability
We will promote dialogue with stakeholders and implement activities
to support the lifestyles of customers,
centered on the Companys mainstay railway business.
CSr prmi FramWrk
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Crpra SCiaL rSpSiBiLiy
Safet Measures
FollowingtheFukuchiyamaLineaccident,JR-WestormulateditsnewCorporatePhilosophy,whichsetsoutthedirectionin
whichtheCompanymuststrivetowardandtheCompanys
senseovalues.ThefrstitemotheCorporatePhilosophy
stipulates,We,beingconsciousoourresponsibilityorpro-
tectingthetrulypreciouslivesoourcustomers,andincessantly
actingonthebasisosaetyfrst,willbuildarailwaythatassures
ourcustomersoitssaetyandreliability.
SAFETy CARTER
SinceJR-Westdefnessaetyastheonevaluethatmustalways
beupheldwiththehighestpriority,JR-Westhassetoutits
SaetyCharterasaspecifccodeoconductoremployees
regardingsaety.
Safety Charter
We,evermindulotherailwayaccidentthatoccurredonApril25,
2005,consciousoourresponsibilityorprotectingthetrulyprecious
livesoourcustomers,andbasedontheconvictionthatensuring
saetyisouroremostmission,establishthisSaetyCharter.
1 Saetyisensuredprimarilythroughunderstandingandcomply-
ingwithrulesandregulations,astrictexecutionoeachindi-
vidualsduty,andimprovementsintechnologyandexpertise,
andbuiltupthroughceaselesseorts.
2Themostimportantactionsorensuringsaetyaretoexecute
basicmotions,torigorouslyenorcesaetychecks,andto
implementawlesscommunication.
3Toensuresaety,wemustmakeaconcertedeort,irrespective
oourorganizationalafliation,rank,orassignment.
4Whenuncertainaboutadecision,wemustchoosethemost
assuredlysaeaction.
5Shouldanaccidentoccur,ourtopprioritiesaretopreventconcomitantaccidents,andtoaidpassengers.
STACE OF SAFETy MEASRES
FollowingthereectionovertheFukuchiyamaLineaccident,webelievethatourgreatestailureliesinnothavingbeen
abletodetectbeorehandtheactorsthatcontributedtothe
seriousaccident.Forthisreason,wehavesubsequentlystriven
toincreaseoursensitivitytosaety,identiydangersandrisks
beoretheymaterialize,andbuildasystemtoenablethe
necessarystepstobetakeninimplementingproactivesaety
measures.Toachievethis,webelievethatitisnecessaryto
establishaneectiverameworkaswellasinstillsaety
awarenessamongemployees.
Establishment of a Framework
Withregardtotheidentifcationodangersandrisksbeore
theymaterializeandtheimplementationomeasuresto
addressseriousrisks,wehaveintroducedriskassessments
asaspecifcmeansoenablinguniormresponseson
aCompany-widebasis.
Asasystemtoacilitatethesmoothandappropriate
implementationosuchmeasures,wehaveradicallyoverhauled
theCompanysentireconceptoaccidents,andareworkingto
enhanceourtechnicalcapabilities,improvecommunication,
enhancerontlinecapabilities,andreinorcecoordinationwith
Groupcompanies.
Instilling Safety Awareness
Saetyawarenessisthestartingpointorsaetyandisalso
essentialasameansocompensatingoranyincompleteness
withinthesystem.Forthesereasons,weormulatedtheSaety
Charterasaspecifccodeoconductregardingsaetyand
haveencouragedemployeestotakeconcreteactionin
accordancewiththevaluessetintheCharter.
Furthermore,intrainingprogramsconductedatourRailway
SaetyEducationCenter,whichweconsiderthestartingpoint
oroursaetyeducation,andateachoperationalsite,weare
pursuingmeasurestoensurethatwemaintainthelessons
learnedromtheaccident.
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Developing Systems for Proactive Safety Measures
Establishment of a framework Instillment of safety awareness
Introduction of risk assessments Educate entire organization and each employee
Overhaul concept of accidents
Enhance safety-based technical capabilities
Improve safety-related communication
Improve safety based on human factors
Enhance frontline safety capabilities
Reinforce coordination between Group companies inshared pursuit of safety improvement
Specify the Safety Charter
Conduct safety training at the Railway Safety Education Center
Improve safety awareness through participation in
risk management
Ensure internalization of lessons learned
Hold safety meetings
0
150
100
50
200
250
144
62
81
5
66
4 10
1
214
192 195
208217
169 169174
153 152
167160
139134
159 159
145 146
133 132 130
92
119
63
127 121145
129
97 104 92
81 83
8171
7175
79 75
7465
57 60 60
48
47
69
57
82
68 6372 69 67
8388
68
56
7783
71 76 74 71 69
44
100
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6571
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1 1 1
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11Preliminary
figure
praiaL raiLWay aCCidS
SaC F SaFy maSurS
Operational railway accidents:Accidentsasstipulatedbyministerialordinancesuchastraincollisions
Train accidents:Traincollisions,trainderailments,andtrainfres
Railway level crossing obstruction accidents:Collisionsorcontactsbetweentrainsorrailcarsandpeopleorvehiclescrossingrailwaytracksatrailwaylevelcrossings
Railway death or injury accidents:Deathsorinjuriestopeopleresultingromtheoperationotrainsorrailcars
Property damage accidents:Propertydamageo5millionormoreresultingromtheoperationotrainsorrailcars
Basic Safety Plan
WehaveormulatedtheBasicSaetyPlanasourinitiatives
aimedatbuildingasystemoproactivesaetymeasures.We
areworkingtogetherwithourGroupcompaniesinanall-out
eorttoreachourattainmenttargetsundertheBasicSaetyPlan.
AttainmentTarget
Buildingacorporatesystemtoensurenoaccidentsthatproducecasualties
amongourcustomersandnoseriouslaboraccidentstoouremployees.
Specifcally,throughthemeasuresothefve-yearBasicSaetyPlan,
weaimtoimplementandestablishtheollowinginitiatives:
(1)Identifcationorisksthatcouldleadtothedeathorinjuryocustomers
orseriouslaboraccidentsamongemployees,sharingresultso
evaluationsontheseriousnessoeachriskamongrelatedindividuals
(2)Implementationocountermeasuresorrisksthatneedtobe
givenpriority
(3)Receptionoalargeamountosaetyinormationromemployees,
establishmentoappropriatesystemsormonitoringrisk
Sinceitsestablishment,JR-Westhasimplementedanumberosaetymeasuresgearedtowardimprovingsaetythroughtheenhancemento
boththesotandhardelementsoitsoperations.Asaresult,operationalrailwayaccidentshavebeendeclining.Thenumberooperational
railwayaccidentsduringfscal2011wasthesecondlowestintheCompanyshistory.Inparticular,railwaylevelcrossingobstructionaccidents
wereatanall-timelow.However,inlightotheactthatacertainnumberoaccidentsstilloccur,wewillaggressivelyimplementmeasuresor
thecontinuedenhancementosaety.
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Preserving the atura Environment
BASC PRESERVATO POlCyJR-WestworkstogetherwithotherGroupcompaniesto
contributetothepreservationothenaturalenvironment
andtherealizationoasustainablesociety.
TATVES TO PREVET GlOBAl wARMG
CO2 Emissions Reduction and Energy Conservation
Railwaysareamodeotransportationthathasarelativelylight
impactontheenvironment.However,railwayoperationsthem-
selvesrequireagreatdealoelectricityanduel.TheCompany
doesnotonlyocusonreducingtheenergyconsumedbyits
railwayoperations,whichaccountsorthemajorityotheGroups
energyconsumption,italsoendeavorstoconserveenergyinits
stations,ofces,andthroughoutallotherareasoitsoperations.
Throughcomprehensiveenergyconservationinitiatives,the
JR-WestGroupaimstohelppreventglobalwarming.
IntroducingEnergy-savingRollingStock
Inordertoreducetheenergyconsumedbyitsrailway
operations,whichaccountsorapproximately80%oitstotal
energyconsumption,JR-Westisintroducingnewrollingstock
equippedwithVVVFinvertercontrolsystems,regenerative
brakes,andotherenergy-savingeatures.
ImprovingGroundFacilities
JR-Westisimprovingitsgroundacilitiestoullyutilizethe
characteristicsoitsenergy-savingrollingstock.Thisincludes
theinstallationotheDCeedingsystemsbetweenupand
downlines,hybridelectricpowersupplysystems,andother
acilitiestohelptheCompanybettertakeadvantageothe
electricityacquiredthroughtheregenerativebrakesoits
energy-savingrollingstock.
ReducingtheEnergyUsedbyStations,Ofces,andOtherFacilities
Whilestationsandrelatedacilitiesuserelativelylowamountsoenergyincomparisontotheamountconsumedbyrailway
operations,themovetomakeJR-Westsstationsbarrierree
tendstoincreaseenergyconsumption.Inadditiontocontinuing
itsdevelopmentotechnologiestoreduceenergyconsumption,
JR-Westisalsoadvancingeortstomakeitsstationsinto
environmentallyriendlyeco-stations.
Utilizing Natural Energy
SolarandWindPower
Usingenergyinamoreefcientmannerinitstrains,stations,
andotheracilitiesisnottheonlywaythatJR-Westisworkingto
preventglobalwarming.Byintroducingsolarpowergenerators
andminiaturewindpowergenerationacilities,itisalsoactively
utilizingnaturalenergysourcesthatdonotleadtotheemission
oCO 2gases.Inaddition,OsakaStationCity,whichbegan
operationinMay2011,isequippedwithsolarpowergenerators.
A103kwgeneratorisequippedontherooothestationplatorm
anda26kwgeneratorisequippedontheroootheaccessway
leadingtotheparkingstructure.Theenergyromthesegenerators
isprimarilyusedtopowerlightingandelevators.
RECyClG TATVES
Realization of a Recycling-based Society
TheJR-WestGrouppracticesthe3Rs(reduce,reuse,and
recycle)withrespecttoallwasteproducedduringtheconstruc-
tionandmaintenanceoitsacilitiesaswellastheoperationo
itsstationsandtrains.Specifcally,ithasestablishedcleargoals
regardingtherecyclingothematerialwastecreatedthrough
railwayoperationsaswellasthegarbagecollectedromstations
andtrains,andisconductingrecyclinginitiativesaccordingly.
AddressingWasteProducedDuringFacilityMaintenance
andConstruction
TheJR-WestGroupperormsregularmaintenanceand
constructionoacilitiesinordertoensurethatitsrailwayscan
operatesaely.Infscal2011,thetotalwasteproducedthrough
theseactivitiesandcontractedconstructionamountedto
203,00 0tons.Toaddressthiswasteproduction,theGroup
employsconstructiondesignsandmethodsthatutilizeresources
moreefcientlyandlimitwasteproduction.Itisalsoproactivein
itseortstoreusesuchwaste.Infscal2011,theGroupwasabletoreuse95.6%othewasteproducedthroughthesemeans.
Energy-savingrollingstock
(321Series)
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RecyclingGarbageromStationsandTrains
Infscal2011,thetotalamountogarbagecollectedromstationsandtrainswasapproximately21,000tons.Inordertopromotethe
recyclingosuchgarbage,theGroupplacedgarbagereciprocals
withdivisionsordierenttypesogarbageinitsstations,trains,and
otheracilities,andworkedtorecoverrecyclablessuchascansand
plasticPETbottleswiththecooperationocustomers.Infscal2011,
itwasabletorecycle95.8%othegarbagecollectedinthisway.
PlacingGarbageReciprocals
TheGrouphopesthatitscustomerswillhelpcontributetothe
separationogarbageorrecycling.Forthisreason,ittakescare
toensurethatitsgarbagereciprocalsareeasytousethroughsuch
innovationsasimprovingtheshapeothereciprocalsmouths.
TheGroupplaceslarge,transparentreciprocalswithourdivisions
onitsstationplatorms.Intrains,smallerreciprocalswithtwo
divisionsarebeinginstalledinconsiderationothelimitedspace.
COMPlACE TATVES
Consideration for Rail-side Environments
ReducingNoiseandVibrationPollution
TheJR-WestGroupisactivelyworkingtoreducethenoiseand
vibrationpollutioncreatedbyitsrailwayoperations.Asoneacet
otheseinitiatives,ithasinstallednoisebarriersalongtheside
oShinkansenraillinesandisexpandingtheusageoN700
seriestrains,whichrunrelativelyquietly.Onconventionallines,
theGroupisintroducingmaintenancecarsthatproduceless
noisewhenperormingmaintenance.
EliminatingSoilPollution
Whensellingplotsolandorconstructingacilities,shouldtheleveloDesignatedHazardousSubstancesoundinthesoil
exceedtheacceptablelimitsdefnedbytheSoilContamination
CountermeasuresAct,theCompanytakesthenecessary
measuresdescribedintheacttoaddresstheissue.
Management of Chemical Substances
TheJR-WestGroupisextremelycareulwhenmanaging
chemicalsubstances.Itmaintainsanaccurateunderstanding
othetypesandvolumesothechemicalsusedorstoredatits
variousoperationalsites,implementsthoroughstorageand
managementmeasures,andisconstantlystrivingtolimitits
usageosuchsubstances.
ManagingandDisposingoPCBs
Equipmentthathasusedpolychlorinatedbiphenyls(PCBs)
andotheritemsthathavebeencontaminatedbyPCBsare
careullystoredandmanagedinaccordancewithrelevantlaws
andregulations.Further,theGroupissteadilydisposingo
suchmaterialsaccordingtolawsandregulations.AsoMarch
31,2011,ithaddisposedo535tonsomaterialscontaminated
byPCBs.
TakingStepstoAddressthePRTRLaw
UnderthePollutantReleaseandTranserRegisters(PRTR)
Law,companiesarerequiredtosubmitreportsonthevolumes
ochemicalsubstancestheyhavereleasedortranserred.
ApplicablesubstanceshandledbytheJR-WestGroupinclude
thechemicalsusedasorganicsolventsortrainmaintenanceas
wellasantireezeordieseltrains.Infscal2011,theCompany
submittedreportsonthesesubstancesinaccordancewiththe
PRTRLawor6oitsoperationalsites.
Garbagereciprocalonastationplatorm
Noisebarriersinstalledalongside
Shinkansenraillines
Quietmaintenancecars
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Fundamenta Sta