The Privatization of Tokyo Metro

March 3, 2009
Tokyo Metro Co., Ltd.
 Contents

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 - P15

9. Future Plans of Tokyo Metro Group P16 - P17

Reference P18

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

Capital ¥58.1 billion

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

Business 1. Operation and management of subway business in and around the heart
Contents of 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 are
actual results for FY2007)

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

Employees

Group Transportation outsourcing services

Companies Real estate business
Leasing business, etc.
with a total of 12 companies
2
 1. Company Profile of Tokyo Metro (2) Railway business outline
Lines in Operation 9 Lines

Ginza Line 14.3km

Marunouchi Line 27.4km
Hibiya Line 20.3km
Tozai Line 30.8km
Chiyoda Line 24.0km
Yurakucho Line 28.3km
Hanzomon Line 16.8km
Namboku Line 21.3km
Fukutoshin Line 11.9km

Operating Total195.1km
kilometers
Number of 179 stations
Stations
Number of Cars 2,667 cars (As of the end of December 2008)
Number of Average 6.22 million passengers per day (FY2007)
Passengers ---Ranked second in the world

# In Tokyo, Toei Subway, which is a different entity to Tokyo Metro, operates four other subway lines. 3
 1. Company Profile of Tokyo Metro (3) Tokyo Metro Route Map

About 45km
4
 1. Company Profile of Tokyo Metro (4) History

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

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

1962 Mar.
Opening of seven lines from Marunouchi line to Hanzomon line
-2003 Mar.
（km） Changes in operating kilometer

Establishment of FY2008 195.1km

2004 Apr.
Tokyo Metro Co., Ltd.

Opening of
2008 Jun.
Fukutoshin Line

FY1941 14.3km
5
(FY)
 2. Background of Privatization

- June 1986 Report from Provisional Council for Administrative Reform (extract)
Teito Rapid Transit Authority should be reformed to a special company as soon as
possible within five years. When its subway network approaches completion and
operation of the lines becomes the main role for the company, it should be converted
to 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

6
 3. Privatization Process

First step Second step

Special company under Fully privatized company

The Tokyo Metro Co., Ltd. Law
Sale of all stocks held by
the Government
Dissolution of Teito Rapid Transit Authority
and Tokyo Metropolitan Government
Establishment of Tokyo Metro Co., Ltd.
Abolition of the Tokyo Metro Co., Ltd. Law

The Tokyo Metro Co., Ltd. Law

April 1, 2004
provides that the second step shall
be implemented as soon as
possible.

7
4. Challenges to be Met for Privatization

Change in the way of thinking

-Ensure self-reliant
management
-Emphasize customer-oriented
approach

Reinforcement of
Reduction of debt
management infrastructures

8
 5. Changes in Consolidated Performance

Change of Revenue Establishment of Tokyo Metro

(Units : billion yen) 【378.4】
【344.8】 【350.6】 【352.6】 【357.3】 【367.7】

: Other related
business

: Railway
business

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

Change of Operating Income and Net Income

(Units : billion yen)
Establishment of Tokyo Metro

9
 6. Changes in Consolidated Financial Condition

Change of Debt
(Units : Billion yen)
Establishment of Tokyo Metro

Change of Stockholder’s Equity

(Units : Billion yen)
Establishment of Tokyo Metro

10
 7. Medium-term Management Plan of Tokyo Metro Group

“Dash! Tokyo Metro Plan 2006” (Phase I) (2004-2006)

“Step Up Tokyo Metro Plan 2009” (Phase II) (2007-2009)

Establishment Opening of
of Tokyo Metro Fukutoshin
Line

Dash! period Step Up period

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

Keywords: “Self-reliance and challenge to change”

Goal which
---Aiming to be a top-class company among other companies in the same industry
“Dash!” through the reduction of debt as the highest priority, as well as cost-effective
initiatives investments and improvement in profitability by means of cost reduction, improved
aim for profitability and sales growth.

Goal which Keywords: “Sustainable improvement in corporate value”

---Aiming to sustainably increase revenue and profit through the measures such as
“Step Up” safe operation and service improvement to gain support from customers and
initiatives continuously improve profitability.
aim for
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 8. Achievements Made by Tokyo Metro Group (1)Railway Business
In the railway business, as well as providing facilities to improve safe and stable transport, Tokyo
Metro implemented the following activities to offer customer-oriented services and increase
convenience:
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 the
Chiyoda Line Mar. 2008
• Opening of Fukutoshin Line Jun. 2008
Service Managers Platform Doors Opening of Fukutoshin Line

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 8. Achievements Made by Tokyo Metro Group (2)Related Business
In the related businesses, Tokyo Metro implemented the following activities to improve
customer satisfaction, focusing on the effective use of unused land and station spaces:

Major activity Service began

• Opening of “Comfort Hotel Tokyo Kiyosumi Shirakawa Mar. 2005
• Opening of “Echika Omotesando” Dec. 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 M’s TOWER” Apr. 2008 (see slide 15)
• Implementation of advertisements using the digital display boards Apr. 2008
installed in trains

Comfort Hotel Tokyo R&B Hotel Tokyo Toyocho

Kiyosumi Shirakawa In-
In-train digital display advertisements

13
 8. Achievements Made by Tokyo Metro Group (3)PASMO

Introduction of PASMO IC cards, Issuance of “Tokyo Metro To Me CARD”

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

PASMO IC card
Tokyo Metro To Me CARD

14

8. Achievements Made by Tokyo Metro Group (4) AOYAMA M’s TOWER
Opening of Echika Omotesando
In December 2005, a commercial complex
called “Echika Omotesando” opened in
Omote-sando station. Our aim is to create
a convenient and attractive station space,
integrating railway and commercial
facilities.
Echika Omotesando
Opening of AOYAMA M’s TOWER
In April 2008, a complex called “AOYAMA
M’s TOWER” opened. This complex
includes an extended stay type hotel, rental
housing with furniture, and commercial
facilities.
15
 9. Future Plans of Tokyo Metro Group (1) Railway Business

In the railway business, as well as keeping safe and stable transport to improve reliability, Tokyo
Metro will continue to improve facilities and develop services that meet the various needs of
customers.
-Safety improvement through the measures against earthquakes, the installment of fire protection
equipment, 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 cooperation
with various companies
Barrier-free facilities such as escalators and
elevators Development and improvement of rest rooms Special ticket

16
 9. Future Plans of Tokyo Metro Group (2) Related Business

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

-Development of “Echika Ikebukuro” Installment of digital display boards

(design image)
-Building development in the 12th block of Ikebukuro
-Refurbishment of shops in stations and the additional installment of
ATMs and automatic vending machines
-Implementation of advertisements using digital display boards
installed on platforms
- Development of existing land

Echika Ikebukuro (design image)

17
 【Reference】 Comparison with other Railway Operators
Number of passengers (Unit ： million passenger) Income from fares (Unit ： billion yen)
(for the fiscal year ended march 2008) (for the fiscal year ended march 2008)

18
Thank you for your attention.