The Shinkansen Operation and Station Development. 11 May, 2015 Takao NISHIYAMA, Executive Director East Japan Railway Company

The Shinkansen Operation and Station Development 11 May, 2015 Takao NISHIYAMA, Executive Director East Japan Railway Company

Agenda 1 1. Outline of JR East 2. Characteristics of Shinkansen 3. Essence of Shinkansen management 4. Station Development

Outline of JR East JR EAST, a passenger railway company, is the largest railway company in JAPAN Network: 7474.2 km *1 No. of Passengers: 17 million /day *1 (the largest in the world) No. of Trains: 13,000 /day *1 Operating Revenue: 183.7 billion SEK *2 Net Income: 12.0 billion SEK *2 No. of Employees: 59,240 *1 - No subsidies from the government *1: Numbers are as of FY ended March 31, 2014 *2: Numbers are as of FY ended March 31, 2015 1 SEK =15 yen Greater Tokyo area 3

Integrated Management Diversification Life-style business IT Suica Railcar manufacturing Overseas business Operation Various transport modes Stations Trains Buses Monorail Tracks Rolling stock Maintenance Infrastructure Rolling Stock Signals Electric power supply Ownership infrastructure 4

Integrated Management Shin-Aomori Akita We own and operate all categories of railway transport. Shinjo Yamagata Niigata Kanazawa Nagano Takasaki Fukushima High-speed Integrated Railway Network Tokyo Metropolitan Network Metropolitan Regional 5

Shinkansen (HSR) Network five directions Shinjo Akita Shin-Aomori Morioka 1964: Shinkansen began operation 0 fatalities for nearly a half century Yamagata Niigata Kanazawa Nagano Takasaki Sendai Fukushima East Japan Railway Shinkansen Network : 1,470 km Dedicated Shinkansen line : 1,193 km Gauge-converted conventional lines: 277 km No. of Passengers: 241,000 /day No. of Trains: 310 to 415 /day 6

Tokyo Metropolitan Area Network Dense railway network of JR East. 25 lines within a mere 50 km radius. Through operations directly into other railways network. Tokyo JR East Shinkansen JR East Conventional lines Other private railroads Subway Narita International Airport 7

Smooth Connectivity between Shinkansen & Tokyo Metropolitan Area Network Shinkansen Trains Airport Access Trains Suburban Trains Urban Trains Tokyo Monorail (subsidiary company) Tokyo Haneda Airport JR East Shinkansen JR East Conventional lines Other private railroads Subway Narita International Airport 8

Integrated Management We own and operate non-transport business utilizing asset for and around railway operations. Revenues from Railway and non Rail Businesses Conventional Lines Shinkansen (High-Speed rail) Non Rail Business 33% 67% Transportation JR East Group Total 183.7 billion SEK (2015.03, 1 SEK = 15 JPY) 66% 30% Tokyo Metropolitan Area Network Transportation Revenue 113.1 billion SEK 9

Characteristics of Shinkansen High-speed Safety Eco-friendliness Max. test speed : 360km/h Max. commercial speed : 320km/h Shorter trip time High-frequency Large-capacity 15 trains per hour 1,634 (maximum) passengers per train Solution for dense traffic No. of passenger fatalities: 0 since opening in 1964 Emergency countermeasures against earthquakes, snow, heavy rainfall, etc. Reliability Less CO 2 emissions Contribution to society Average delay: Less than 1 min. per train Punctuality 11

Characteristics of Shinkansen Fast Ticketing Mobile Suica No more queues for ticketing Comfort GranClass (more deluxe than Green Car first class; first introduction on our railway) No ticket inspection Easier for passengers Through service Profitability Revenue from Shinkansen: \492 billion(us$5.2billion,fy 2013.3) No support from the government Contribution to the nation Efficiency Operation Maintenance Low OPEX & CAPEX 12

The fastest JR East Shinkansen trains 13 High Speed Maximum commercial speed : 320km/h Through Service - Maximum commercial speed: 320km/h. - Series E5 & E6 can be coupled and uncoupled automatically. - Series E6 run through onto conventional lines. Series E5 Series E6

Efficient train scheduling with coupling function Series E6 Uncoupling or Coupling Series E5 Series E5 No transfer Series E6 Automatic coupling procedure time Uncoupling : 2 30 Coupling : 4 00 14

Gran Class Introduction of first class car with excellent service 15

Punctuality is the mother for everything~shorten total trip time Shorten total trip time Origin Destination Ticket Purchase Transfer Station HSR Station Conventional line train Last one mile Reduce ticket purchase time Shorten in-station time Eliminate train transfers Park & Ride System Transfer Station HSR Conventional line train 17

Essence of Shinkansen management 18 Safety The top priority for HSR management Shortened total trip time Punctuality Cost efficiency Increase in ridership Low OPEX (Operation & Maintenance) Low CAPEX More feasible plan Mutual relationship

Efficient Operation Quick turnaround at Tokyo terminal station With a 12 minutes turnaround, we can 0 00 2 00 9 00 12 00 provide very frequent service with minimum rolling stock 4 minutes headways with a high operating ratio => Minimum rolling stock (CAPEX) simplify station layout and infrastructure only 2 platforms with 4 tracks => Minimum infrastructure(capex) 19

Efficient Operation Quick turnaround at Tokyo terminal station Simplify station layout and infrastructure - Land made available by more efficient operation should be developed as a commercial zone. Our office buildings and hotels are built around Tokyo Station on land owned by JR East. - Train storage should be at operating depots, not at the terminal stations; depots should be located near the terminal stations. Distance between depots and terminal stations in JR East: Tokyo 8.5 km, Sendai 10.4 km, Morioka 4.1 km, Niigata 5.1 km, Nagano 9.9 km 4~10 km 20

Introduction in Non-rail Business Life-Style business is our second business pillar. Retail&Restaurant 2,000 stores Office 24 Buildings In-Station SC 25 zones Fitness Club 18 facilities *JRE Sports Co. total sales Shopping Center Advertising 154 SCs *EJ Marketing& Communications Inc. total sales Hotel 45 hotels 6,600 rooms Regional Revitalization and so on 22

Revenue of Non-rail Business We own and operate non-transport business utilizing asset for and around railway operations. Station Space Utilization Profit Rate 8.4 % 3 4.0% Non- transportation ratio 3 2.0% 3 0.0% 3 2.8 % 2 8.0% SC & Office Profit Rate 27.1 % Others Profit Rate 4.5 % Transportation Profit Rate 15.4 % 2 6.0% 2 4.0% 2 2.0% 2 0.0% 2 5.6 % Outer circle ; Operating revenues of Segments Inner circle ; Operating income of Segments Profit rates are about 15% both on rail business and non-rail business FY2014, Approx. 70 consolidated subsidiaries 23

Thank you for your kind attention East Japan Railway Company 24