Suica

Using Mobile Phones and NFC for Fare System Access and Payment: A Workshop to Accelerate Transit Applications

Business strategy of Mobile

October 4, 2008 APTA 2008 Annual Meeting

East Japan Railway Company New York Office

Copyright 2008 East Japan Railway Company. All rights reserved 1

Mobile Suica Agenda 1. Introduction 2. Status of Suica 3. The Key to Growth 4. Third CoreBusiness Tool 5. Conclusion

Copyright 2008 East Japan Railway Company. All rights reserved 2

Introduction ■ Subject ・Business Strategy of Mobile Suica ■ Summary ・ The Key to Growth : Reliability ・ Mobile Suica: Third Core Business Tool

Copyright 2008 East Japan Railway Company. All rights reserved 3

Mobile Suica Agenda 1. Introduction 2. Status of Suica 3. The Key to Growth 4. Third CoreBusiness Tool 5. Conclusion

Copyright 2008 East Japan Railway Company. All rights reserved 4

Railway in JAPAN
JR-Group

Railway Network surrounded all over JAPAN
Railways in Japan Japan Railways Group

207
No. of railway corporations & companies

7
6 passenger & 1 freight companies

JR Group Private companies, LRT Monorail, etc.

Length of network No. of employees

17,073mile 210,557
(engaged in railways)

12,500 mile 129,374
(engaged in railways)

Passengermile

240.9billion

151.4billion

Copyright 2008 East Japan Railway Company. All rights reserved 5

JR East Business
First core business 【Railway】
・No. of stations: ・Service length :

1,703
7,526.8 total railway lines in Japan

Aomori Higashi-Noshiro Odete Akita Omagari Yokote Shinjo NiigataYamagata Yonezawa Nagaoaka Ishimaki Sendai Morioka Hanamaki Kitakami Ichinoseki Hachinohe

・No. of customers: Approx.

16 million/day

Second core business 【Life-style services】
・Shopping centers: at about 120 locations ・Major retailers: Kiosk (approx. 650) NEWDAYS (approx.410) ・Food & beverages: Becks, Beckers (approx.100) Ajisai Chaya (Soba) (Approx.60), etc. ・Hotel: Approx. 40 and 5,600rooms
Naoetsu

Fukushima Aizuwakamatau Koriyama

（Figures are as of the term ending March in 2008 or of the end of March 2008)

ShinTakasaki Maebashi

Nagano

Nikko

Oyam a

Utsunomiy a Mito

Matsumoto

Iwaki
Ome Taka o Omi ya Tori de Uen Chiba o Yokohama

Shiojiri

Third core business 【Suica】Kofu
Establishing Suica operations as a third pillar of operations （JR EAST 2020VISION “I do mu”) mu

Utsunomiya Shin-Maebashi Takasaki Oyama Mito Omiya Tokyo Narita Chiba Choushi Kisarazu
Atam i

Narita Narita Airport

Hachioji Atami Ito

Toky Tokyo o Ofu na

Odawa ra Ito

Copyright 2008 East Japan Railway Company. All rights reserved 6

Financial Data Operating Revenue : $ 25.7 billion Operating Income : $ 4.2 billion
Other services(Hotel, Advertisement,Credit card, etc.) 8.8% Shopping centers & office buildings 7.6%
Segment Information

Transportation 68.7%

Station Space Utilization 14.9%

Copyright 2008 East Japan Railway Company. All rights reserved 7

Passenger Transport Volume
■ Breakdown of transport volume (for the 3rd period of a fiscal year 2006）
（Unit: 1 million passenger km）

Conventio nal lines 25% Other
than commute rpass 43%

Shinkans en 15%

Transport Volume: Concentrated in the Tokyo metropolitan area 61%

Commute Commuter r pass pass 57% 57%

Commuter pass usage: 57%
Tokyo Tokyo metropolitan metropolit area an area 61%

61% Total: 78.8 billion passenger mile
Copyright 2008 East Japan Railway Company. All rights reserved 8

Transport Patterns
Intercity Transport
Long distance: ～413 mile Longtravel time: ～4 hours ⇒Seating needs ⇒Seat reservation System ⇒MARS
(Multi Access seat Reservation System)
Akita Shinkansen Akita Shinjo Yamagata Shinkansen Sendai Yamagata Niigata Fukushima Gala Yuzawa Echigo Yuzawa Takasaki Nagano Shinkansen Omiya Tokyo Tohoku Shinkansen Hachinohe Morioka Shin-Aomori

Metropolitan Transport
Many passengers: 16 Many trains ⇒needs for congestion reduction...