TOkyo MEtro Presentation

8/6/2019 TOkyo MEtro Presentation

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The Privatization of Tokyo Metro

March 3, 2009

Tokyo Metro Co., Ltd.


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1. Company Profile of Tokyo Metro P2 - P5

2. Background of Privatization P6

3. Privatization Process P7

4. Challenges to be Met for Privatization P8

5. Changes in Consolidated Performance P9

6. Changes in Consolidated Financial Condition P10

7. Medium-term Management Plan of Tokyo Metro Group P11

8. Achievements Made by Tokyo Metro Group P12 - P159. Future Plans of Tokyo Metro Group P16 - P17

Reference P18

Contents


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Capital 58.1 billion

Stockholders National Government(53.4%), Tokyo Metropolitan Government(46.6%)BusinessContents

1. Operation and management of subway business in and around the heartof Tokyo

2. Management of other related businesses(Real estate business, Leasing business, Advertisement business, etc.)

Net Sales 338.3 billion (Unconsolidated) 378.4 billion (Consolidated) (figures areactual results for FY2007)

Number ofEmployees 8,509 employees (As of 31 March, 2008)

GroupCompanies

Transportation outsourcing servicesReal estate business

Leasing business, etc.with a total of 12 companies

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1. Company Profile of Tokyo Metro (1) Company Outline


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1. Company Profile of Tokyo Metro (3) Tokyo Metro Route Map

About 45km


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1927 Dec. Tokyo Underground Railway Company opened a subway for the first time in Asia

1938 Nov. Tokyo Rapid Railway Company opened a subway

1941 Mar. The Teito Rapid Transit Authority Law was promulgated

July Tokyo Underground Railway Company and Tokyo Rapid Railway Company weremerged and the Teito Rapid Transit Authority was established

1962 Mar.Opening of seven lines from Marunouchi line to Hanzomon line-2003 Mar.

2004 Apr.Establishment ofTokyo Metro Co., Ltd.

2008 Jun.Opening ofFukutoshin Line

Changes in operating kilometer

(FY)

km

FY1941 14.3km

FY2008 195.1km

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1. Company Profile of Tokyo Metro (4) History


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- June 1986 Report from Provisional Council for Administrative Reform (extract)Teito Rapid Transit Authority should be reformed to a special company as soon aspossible within five years. When its subway network approaches completion andoperation of the lines becomes the main role for the company, it should be convertedto a completely private company that receives no public funds.

- February 1995 Cabinet approval (extract)Teito Rapid Transit Authority shall be fully privatized. As the first step, it shall

become a special company around when the lines under construction are completed.The Government shall make efforts to complete its full privatization as soon as

possible, and request the local public bodies concerned to consider the same.

- December 2001 Cabinet approval (extract)As the first step toward full privatization, Teito Rapid Transit Authority shall be

changed to a special company about a year after the opening of extended Hanzomon

Line now under construction (planned for spring 2004).

- December 2002 The Tokyo Metro Co., Ltd. Law was promulgated and enforced.

- April 2004 Tokyo Metro Co., Ltd. was established

2. Background of Privatization


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First step Second step

Fully privatized company

Sale of all stocks held by

the Governmentand Tokyo Metropolitan GovernmentAbolition of the Tokyo Metro Co., Ltd. Law

Special company underThe Tokyo Metro Co., Ltd. Law

Dissolution of Teito Rapid Transit AuthorityEstablishment of Tokyo Metro Co., Ltd.

April 1, 2004 The Tokyo Metro Co., Ltd. Lawprovides that the second step shall

be implemented as soon as

possible.

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3. Privatization Process


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Change in the way of thinking-Ensure self-reliant

management-Emphasize customer-oriented

approach

Reduction of debt Reinforcement of

management infrastructures

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4. Challenges to be Met for Privatization


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Change of Revenue

: Other relatedbusiness

: Railwaybusiness

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(Units : billion yen)344.8 350.6 352.6 357.3 367.7

378.4

Fractions smaller than 100 million yen are truncated, and hence the sum total may not meet with the total amounts of individual businesses.

Establishment of Tokyo Metro

Change of Operating Income and Net Income(Units : billion yen)

5. Changes in Consolidated Performance



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Change of Debt

(Units : Billion yen)

Change of Stockholders Equity

6. Changes in Consolidated Financial Condition

(Units : Billion yen) Establishment of Tokyo Metro



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Apr.2004 Apr.2010pr.2007 Jun.2008

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Dash! Tokyo Metro Plan 2006Dash! Tokyo Metro Plan 2006 (Phase I) (2004(Phase I) (2004 --2006)2006)Step Up Tokyo Metro Plan 2009Step Up Tokyo Metro Plan 2009 (Phase II) (2007(Phase II) (2007 --2009)2009)

Keywords: Sustainable improvement in corporate value---Aiming to sustainably increase revenue and profit through the measures such assafe operation and service improvement to gain support from customers andcontinuously improve profitability.

Goal whichStep Upinitiatives

aim for

Goal whichDash!

initiativesaim for

Keywords: Self-reliance and challenge to change---Aiming to be a top-class company among other companies in the same industrythrough the reduction of debt as the highest priority, as well as cost-effectiveinvestments and improvement in profitability by means of cost reduction, improvedprofitability and sales growth.

Dash! period Step Up period

Establishmentof Tokyo Metro

Opening ofFukutoshin

Line

7. Medium-term Management Plan of Tokyo Metro Group


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Major activity Service began Introduction of a New Sign System Apr. 2004 Introduction of a Station Numbering System

Apr. 2004 Deployment of service managers Apr. 2004 Opening of Tokyo Metro Customer Relations Center Apr. 2004 Introduction of new Series10000 trains Sep. 2006 Introduction of PASMO IC cards Mar. 2008 (see slide 14 ) Installment of platform doors for Marunouchi Line (between

Ikebukuro and Ogikubo) Mar. 2008

Extension of the Odakyu Romance Car service on to theChiyoda Line Mar. 2008

Opening of Fukutoshin Line Jun. 2008

Platform DoorsService Managers

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In the railway business, as well as providing facilities to improve safe and stable transport, TokyoMetro implemented the following activities to offer customer-oriented services and increaseconvenience:

8. Achievements Made by Tokyo Metro Group (1)Railway Business

Opening of Fukutoshin Line


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Major activity Service began Opening of Comfort Hotel Tokyo Kiyosumi Shirakawa Mar. 2005

Opening of Echika OmotesandoDec. 2005

(see slide 15)

Opening of R&B Hotel Tokyo Toyocho Jul. 2006 Issuance of Tokyo Metro To Me CARD Feb. 2007 (see slide 14) Opening of AOYAMA Ms TOWER Apr. 2008 (see slide 15) Implementation of advertisements using the digital display boards

installed in trainsApr. 2008

Comfort Hotel TokyoComfort Hotel Tokyo

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R&B Hotel Tokyo ToyochoR&B Hotel Tokyo Toyocho

In the related businesses, Tokyo Metro implemented the following activities to improvecustomer satisfaction, focusing on the effective use of unused land and station spaces:

InIn--train digital display advertisementstrain digital display advertisements

8. Achievements Made by Tokyo Metro Group (2)Related Business

Kiyosumi Shirakawa


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Introduction of PASMO IC cards, Issuance ofIntroduction of PASMO IC cards, Issuance of Tokyo Metro To Me CARDTokyo Metro To Me CARD

In March 2007, PASMO IC fare cards started service in the Tokyo Metropolitan area. It is acommon card which can be used on many private railway and bus companies as well asTokyo Metro.Tokyo Metro also issues credit cards called Tokyo Metro To Me CARD with the PASMOauto charge function.

Tokyo Metro To Me CARDPASMO IC card

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8. Achievements Made by Tokyo Metro Group (3)PASMO


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Opening of Echika OmotesandoOpening of Echika OmotesandoIn December 2005, a commercial complexcalled Echika Omotesando opened inOmote-sando station. Our aim is to createa convenient and attractive station space,integrating railway and commercialfacilities.

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8. Achievements Made by Tokyo Metro Group (4)

Opening of AOYAMA MOpening of AOYAMA M s TOWERs TOWERIn April 2008, a complex called AOYAMAMs TOWER opened. This complexincludes an extended stay type hotel, rentalhousing with furniture, and commercialfacilities.

AOYAMA Ms TOWEREchika Omotesando


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-Safety improvement through the measures against earthquakes, the installment of fire protectionequipment, etc.

-Installment of security camera systems-Improvement in convenience of PASMO IC cards

-Improvement and promotion of barrier-free facilities, including escalators and elevators

-Promotion of development and improvement of stations and rest rooms

- Development of attractive products such as increasing the variety of special tickets in cooperationwith various companies

Barrier-free facilities such as escalators andelevators Special ticket

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Development and improvement of rest rooms

In the railway business, as well as keeping safe and stable transport to improve reliability, TokyoMetro will continue to improve facilities and develop services that meet the various needs ofcustomers.

9. Future Plans of Tokyo Metro Group (1) Railway Business


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-Development of Echika Ikebukuro

-Building development in the 12th block of Ikebukuro

-Refurbishment of shops in stations and the additional installment ofATMs and automatic vending machines

-Implementation of advertisements using digital display boardsinstalled on platforms

- Development of existing land

Echika Ikebukuro (design image)

Installment of digital display boards(design image)

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In the related businesses, Tokyo Metro will actively develop businesses to offer higher qualityservices, including the creation of more convenient and attractive station spaces.

9. Future Plans of Tokyo Metro Group (2) Related Business


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Number of passengers (Unit

million passenger) Income from fares

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(Unit

billion yen)

Reference

Comparison with other Railway Operators

(for the fiscal year ended march 2008) (for the fiscal year ended march 2008)


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Thank you for your attention.

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