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Nishi-Nippon Railroad Co., Ltd.

CORPORATE PROFILE


PRESIDENT’S MESSAGE

“Nishitetsu Group connects different businesses and regions to make a better life for people.”


A commitment to best-in-class service is in our DNA

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ishitetsu Group is made up of over 80 companies in sectors ranging from transportation and logistics to real estate, retail, hotels and amusement parks. With annual revenues of around US$4 billion*, roughly 18,000 employees, and offices in over 20 countries and regions, Nishitetsu Group has a genuinely global presence. Our origins lie in transporting goods and people, businesses where customer safety is the top priority. As a result, a commitment to scrupulous service is embedded in our corporate DNA. As Nishitetsu Group continues to expand into new businesses and territories, we carry this same spirit of service with us. Nishitetsu Group is headquartered in Fukuoka at the northeast tip of Kyushu, the most southerly of Japan’s four main islands. Our philosophy has always been to contribute to and share in the prosperity and progress of the Fukuoka region. Now, however, as Japan’s population ages and opportunities overseas increase, we have added a second dimension to our thinking: while providing ever more sophisticated solutions in transport, retail and senior housing within Japan,

we intend to take advantage of the growing world economy to pursue the expansion of our logistics, hotel and residential real estate businesses at a global level. Openness to new ideas has always been a key differentiator for Nishitetsu Group. Our business model is to export the know-how we develop in Fukuoka to the rest of the world while importing new know-how acquired abroad back to Japan. For us, “going global” involves a virtuous circle where our domestic and international business mutually reinforce one another. From mixed residential developments here in Fukuoka to exciting hotel and residential projects in Asia, and a logistics network that truly spans the globe, this brochure gives an overview of how Nishitetsu Group is evolving and expanding. But no matter how we change, our corporate message, “Connecting your dreams,” is the common denominator that all our activities share: we believe in connecting different businesses and regions to make a better life for people everywhere. Sumio Kuratomi President and CEO For more information: http://www.nishitetsu.jp/en/corporate/

* ‌Revenues for the year ended March 31, 2016 were equivalent to roughly US$4.07 billion based on that day’s exchange rate.

Nishi-Nippon Railroad Co., Ltd.

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HISTORY

Our story starts over a century ago

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ishi-Nippon Railroad Co., Ltd was established in 1908, when there were five different companies running railways and streetcars in the Fukuoka region, transporting “people to shrines and coal from the mines,� according to the local saying.

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Nishi-Nippon Railroad Co., Ltd.

In the 1940s, the various rail companies merged to create the present-day Nishi-Nippon Railroad Co., Ltd. Nishitetsu Group then went on to diversify into new fields such as logistics, hotels and retail. The multifaceted and global Nishitetsu Group of today is the result.


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NISHITETSU GROUP

Transportation

  Buses

  Trains

Logistics

  Air and sea freight, logistics

Nishitetsu Group is active in five key business areas. Real Estate

  Office, commercial and residential property development

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Nishi-Nippon Railroad Co., Ltd.

Retail and Agriculture

  Supermarkets, liquor stores

Leisure and Services

  Hotels, amusement parks and other leisure services


Transportation

Buses “ The size and interconnectedness of our bus network is its greatest strength.”

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ishitetsu Group has around 2,800 buses, a greater number than any other bus company in Japan. We carry over 700,000 people per day and our buses run a cumulative 150 million miles per year. In addition to operating route buses in the cities of Fukuoka and Kitakyushu, we operate highway bus services to the other key cities in Kyushu, as well as night buses to the major cities in the rest of Japan. Kanko Bus runs special chartered buses for sightseeing, study tours, school trips and so on. Our highway buses start from the Nishitetsu Tenjin Expressway Bus Terminal in Tenjin,

a bustling, fashionable district in central Fukuoka. After a recent refurbishment, the terminal features waiting rooms with plenty of comfortable seating, a Starbucks coffee shop and extra large restrooms, making it a welcoming and worthy gateway to the heart of Fukuoka.

highlights  Bigger is better

We began using these articulated buses on our central Fukuoka circle route in fiscal 2016. From just two buses, the number will rise to 15 by 2018. With their large passenger capacity, articulated buses represent a highly sustainable transport solution.

Perfect privacy

This private cabin-style premium seating has been available on our Fukuoka–Tokyo highway buses since December 2014. Limited to just four seats per bus, there is a partition to provide a sense of privacy and an air purifier to ensure greater comfort.

Ride into history

Ridden by over 900,000 people since its 2014 debut, the “Tabito” Dazaifu Liner Bus whisks its passengers, including many inbound tourists, from Hakata railway station and Fukuoka airport to the historic city of Dazaifu. The exterior is decorated with pictures of important historical sights to create a sense of occasion.

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Transportation

Trains “We want the journey to be as enjoyable as the destination.”

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ishitetsu Group operates the Tenjin Omuta (and Kaizuka) Line, and the Chikuho Electric Railroad. The Tenjin Omuta Line has 106 kilometers of track and 72 stations. On an average day, we carry roughly 270,000 passengers in a safe, punctual and convenient fashion. The Tenjin Omuta Line stops at two of Kyushu’s most popular tourist sites: Dazaifu, Kyushu’s selfproclaimed “city of ancient culture,” replete with shrines, temples and museums, and Yanagawa, an old-world castle town famous for its canals.

Nishitetsu Group operates themed trains for these destinations and offers special excursion tickets that include, for example, the train fare, a boat tour and a restaurant coupon as a package. From 2018, we will expand these services, for instance, by adding onboard dining facilities that serve local delicacies, so that the journey is every bit as enjoyable as the destination.

highlights  A train for all seasons

The Suito (“Waterman”) is a dedicated tourist train. Its exterior is painted in bright, traditional colors with different motifs to evoke the different pleasures offered by Yanagawa, a popular

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Nishi-Nippon Railroad Co., Ltd.

tourist destination. For example, one car features the irises that grow by the canals in early summer, while another features an autumnal motif of migratory birds and chrysanthemums.

More sustainable travel

These new cars—due to be introduced to the Tenjin Omuta Line in spring 2017—offer both enhanced safety and improved environmental performance. Far lighter than their predecessors, they consume half the power and even have special regenerative brakes that can recycle the energy from braking.


Logistics “We offer one-stop solutions and the level of reliability and care that people expect from Nishitetsu.”

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adding sea cargo in 1991. As part of our tailored door-to-door solutions we offer customs broking via our specialist staff with expertise in fields from pharmaceuticals and chemicals to live animals and plants.

NNR Global Logistics started out in air cargo,

NNR Global Logistics also provides thirdparty supply chain management services. Whether in car components, electronic appliances or food and beverage, we can assume responsibility for every stage of the process , from the point of production, through freight management and warehousing, to the point of consumption.

ishitetsu Group has been in the logistics business since 1948, opening its first overseas subsidiary in the US in 1971, Asia in 1979 and Europe in 1991. NNR Global Logistics has expanded its comprehensive suite of air, sea, and overland cargo services hand in hand with the globalization of the world economy. Logistics is now the biggest and the fastest growing of all the Nishitetsu Group’s businesses, accounting for almost one-quarter of total revenues. The plan is to expand to 105 cities in 27 countries.

highlights  Simpler. Faster. Better.

NNR Global Logistics has been awarded triple Authorized Economic Operator (AEO) accreditation. Not only a testimony to our excellent security and compliance procedures, AEO accreditation is not only a testimony to our excellent security and compliance procedures, but it also offers tangible customer benefits in the form of simplified customs procedures.

ASEAN-focused expansion

With the December 2015 launch of the ASEAN Economic Community and multinational manufacturers increasingly keen to diversify out of Mainland China, the Indo-China Peninsula is becoming Asia’s next manufacturing hub. The rapid, stable growth achieved by two countries—Cambodia and Myanmar—is particularly remarkable. As new export industries in clothing, electrical appliances and motor vehicles take off, so does the demand for imported goods— and the need for the sophisticated logistics services that NNR

Global Logistics provides. In 2016, we set up representative offices in Yangon (Myanmar) and Phnom Penh (Cambodia) as a first step to establishing local subsidiaries and offering comprehensive air, sea and land coverage of the Indo-China Peninsula and ASEAN.

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Real Estate “We want to create vibrant districts that encourage interaction between people.”

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ne Nishitetsu Group precursor company was already building homes in Fukuoka in 1911, so our history in the real estate business goes back a long way. Nowadays, we develop office buildings, commercial buildings and condominiums for rental, while also developing houses, condominiums and senior housing for sale. RENTAL: Nishitetsu Group owns a total of 15 office buildings with a floor area of 179,000 square meters. When it comes to rental, we launched our Lacleis branded high-rise condominium series in 2006. So far we have constructed a total of eight buildings and over 800 units. It is, however, our commercial buildings that constitute the most visible

component in our rental portfolio. Nishitetsu Group has developed many landmark properties in Tenjin, the busiest and most fashionable part of Fukuoka, such as the Solaria Plaza. Overall we have over 10 commercial buildings with over 450 tenants in nearly 300,000 square meters of floor space. SALE: Starting in the 1960s, we have built 141 buildings containing over 6,000 apartments in our Sunriant series. These are generally located conveniently near to our own transport routes. Since 2003, we have been actively addressing the needs of Japan’s aging population by constructing dedicated senior housing. So far, we have constructed five senior residences containing over 600 living units.

highlights  Creating lively communities

On an artificial island in northeast Fukuoka, Nishitetsu Group is developing “Island City,” a new community with a mixture of high-rise and lowrise accommodation. The combination of apartments, dedicated senior housing, a supermarket, a community center and excellent transport links will make it a vibrant place to live.

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Shining potential

Solaria Plaza is a commercial building located in central Tenjin directly linked to the railway station and Nishitetsu Highway Bus Terminal. To make it perform to its full potential, we built better links to the underground shopping arcades that run under Fukuoka and drew in major international brands like Dean & DeLuca. The refurbished Solaria Plaza opened in April 2015.

Vietnamese partnerships

Nishitetsu Group has teamed up with a leading Vietnamese developer and other partners to build apartment buildings and detached house developments in Ho Chi Minh City. Japanese architecture and design enjoys a first-class reputation in Asia for its elegance, compactness and functionality.


Retail “Our stores are an integral part of the communities they serve.”

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ishitetsu Group’s retail business is based primarily in Fukuoka and Saga, two prefectures in northwest Kyushu. The roughly 60 supermarkets that we run under the Nishitetsu Store/Reganet brand represent the core of our business, as well as around 25 standalone liquor shops under the Uncle Fujiya brand. Thanks to our roots in the transportation business, many of our stores are strategically located at the railway and bus stations that we operate. As a

result, they get plenty of traffic despite being smaller than out-of-town superstores. We are currently reconfiguring the Nishitetsu Store/Reganet brand into three distinct formats. Large stores go under the Reganet brand, medium-size stores under Reganet Marché, and smaller, city-center stores under Reganet Cute. As part of this brand overhaul, we are rebuilding and refurbishing older stores and standardizing the offering across formats.

highlights  Not square

Variety store Incube sells a wide range of items from stationery to beauty products through 13 branches around Japan. In 2014, we began opening smaller-size

stores in fashionable locations such as Kichijoji in Tokyo. The aim is to keep Nishitetsu Group in close touch with younger consumers

Agriculture “Building a new generation of entrepreneurial farmers”

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s a company with deep roots in the Fukuoka region, Nishitetsu Group is committed to revitalizing local agriculture. We recently teamed up with the National Federation of Agricultural

Producers to grow strawberries. Agricultural students come to our farm to study the latest techniques for efficient production. The goal is to foster a new generation of entrepreneurial farmers in Kyushu. Nishi-Nippon Railroad Co., Ltd.

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Leisure and Services

Hotel “Our international hotels serve as ambassadors for our company brand.”

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ishitetsu Group has been in the hotel business since 1969. We currently have four core brands, each addressing a distinct market. The Nishitetsu Inn, with 12 locations throughout Japan, is targeted primarily at business travelers looking for a reasonably priced place to stay. Meanwhile, the Solaria Nishitetsu Hotel offers an upscale hospitality experience for the leisure traveler. CROOM, launched in 2016, is positioned between these two brands. Devised around a theme of enjoying every minute of your stay (rather than just offering a place to sleep), it targets women and leisure travelers. Thanks to Japan’s popularity with international tourists, our hotels are all enjoying

extremely high occupancy rates. The Solaria Nishitetsu Hotel is expanding beyond its Fukuoka origins. We opened a new Solaria Nishitetsu Hotel in 2011 in Tokyo’s Ginza district and are adding more locations all the time, both domestically and internationally. In addition to Kagoshima (2012) and Seoul (2015), we plan to build hotels in Busan, Kyoto and Nagoya (all 2017) and Bangkok (2018).” By offering Nishitetsu Group’s tried and trusted values of reliable, high-quality service and warm hospitality, our hotels can serve as ambassadors for our corporate brand, on both the domestic and the international stage.

highlights  Fukuoka’s official guesthouse

The best of old Japan

With a wonderful location right on the bank of the Kamogawa River, the architecture of the 200-room Solaria Nishitetsu Kyoto takes its cue from the city’s traditional wooden townhouses, or machiya. The interior will also be decorated with traditional Japanese simplicity, making this the perfect place for visitors keen for an authentic experience of the nation’s cultural capital.

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Nishi-Nippon Railroad Co., Ltd.

The Nishitetsu Grand, which opened almost half a century ago in 1969, is the flagship hotel of the Nishitetsu Group. Renowned for the quality of its hospitality, it has hosted state visitors to Japan. Either independently or with an industry partner, we plan to launch a new ultra-deluxe hotel brand in the coming years.

World’s most visited

The year 2018 will see the opening of the Solaria Nishitetsu Hotel Bangkok in the Sukhumvit district of the Thai capital. The 20-story high-rise hotel will have 250 rooms. Alongside London, Bangkok is consistently rated as one of the top two most visited cities in the world.


Leisure and Services

Leisure “Our amusement parks are all about people having a good time.”

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ishitetsu Group operates two amusement parks and an aquarium, each of which has unique strengths of its own. Our Dazaifu Amusement Parks is located in the grounds of the Dazaifu Tenmangu

Shrine, already a popular tourist destination, while Kashiikaen is themed around the globally popular Sylvanian Families brand. Our aquarium—Marine World Uminonakamichi—features 30,000 sea creatures of 450 different species.

highlights  Fun, by land and sea

One recent focus is on developing leisure offerings for the burgeoning numbers of inbound tourists. Our two Fukuoka Open Top Buses offer three

different tours of the city a total of 10 ten times a day, while our cruise ship Mariera offers lunch, dinner and twilight cruises with French cuisine provided by our own Nishitetsu Grand Hotel.

Prepaid smart cards “Making travel and shopping more convenient nationwide”

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ishitetsu launched its rechargeable contactless smart card nimoca (nice money card) for trains, buses and shopping in 2008. It can now be used on travel

networks in and around major Japanese cities. nimoca can be used for making everyday purchases at roughly 6,000 shops and restaurants in and around railway stations in Kyushu and Okinawa.

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CORPORATE SOCIAL RESPONSIBILITY

“Social responsibility is part and parcel of our corporate DNA.” Nishitetsu Group’s origins lie in providing safe and reliable transportation to communities, so social responsibility is part and parcel of our corporate DNA. Full details of our corporate social responsibility initiatives can be found on the company homepage.

Offering a safer service

Enhanced customer sensitivity

We take the safety of our passengers very seriously. All our bus and train drivers are tested for alcohol before work. We also hold an annual drivers’ contest for bus drivers to test them on everything from practical driving skills to traffic law.

We actively gather and respond to customer feedback. Innovations such as the introduction of Wi-Fi to our longdistance bus services are the direct result of listening to our customers.

Supporting greater diversity

Better corporate governance

Nishitetsu Group believes in diversity and is working to boost representation of underrepresented groups, such as women and people with disabilities, in its workforce. New systems to foster work/life balance such as flextime and longer maternity/paternity leave are also being introduced.

Nishitetsu Group has the proper structures in place, such as external directors, auditing functions, compliance policies and a whistleblower system, to ensure best-of-class corporate governance.

Better environmental management

We do a great deal of community outreach in the fields of transport and road safety-related education, as well as providing support for cultural events in Fukuoka.

Nishitetsu Group works to minimize its impact on the environment by reducing CO2 emissions, energy inputs and the amount of trash we generate. Initiatives on renewable energy, recycling and green purchasing are ongoing.

Nishitetsu float at a traditional Fukuoka festival

Direct Social Contribution

We believe in universal design and (above right) equal opportunities

Learning about work at Nishitetsu Work Experience School

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Nishi-Nippon Railroad Co., Ltd.


NNR Group Corporate Philosophy The Corporate Philosophy of the NNR Group consists of the following three philosophies:

Basic Philosophy  The NNR Group will keep providing confidence, comfort, and enjoyment through our businesses which connect people and carry their expectations, walk hand in hand with communities, and develop together.

Management Philosophy  Management to bring out the best in people We create the vibrant corporate climate where people are respected for their humanity; the best in people is brought out, and they are fostered. Creation of our customers’ expectations We put ourselves in our customers’ shoes, respond to their expectations, and provide products and services which create their expectations. Creation of new business values We accurately ascertain the demands of the present age and create new business values that we can share with society. Harnessing the NNR Group’s collective strength We respect independence and individuality, cooperate with each other, and harness the NNR Group’s collective strength.

Code of Conduct  The joy of our customers is our joy. We put ourselves in our customers’ shoes. We value can-do spirit. We act positively with originality and ingenuity. We are proud to be members of the NNR Group. We improve ourselves, play our roles, and take responsibility. We create vibrant workplaces. We talk with our colleagues and deepen mutual trust and partnership.

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Nishi-Nippon Railroad Co., Ltd. 1-11-17 Tenjin Fukuoka, Fukuoka, Japan

All information is correct as of July 2016. Printed in Japan

Corporate profile: Nishi Nippon Railroad Co., Ltd.  

“Nishitetsu Group connects different businesses and regions to make a better life for people.”

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