Summary of the Company Performance

Transportation

In regard to the Tokaido Shinkansen, along with continuing to actively introduce Series N700 rolling stock, we worked to provide highly convenient transportation services based on the train operation systems improved by the timetable revisions in March 2009 that aimed to further develop "Nozomi" service. Furthermore, in March 2010 we further improved the convenience of "Nozomi" with direct service between the Tokaido and Sanyo Shinkansen sections. In addition, we strove to entrench Internet connection service on the Series N700. We also began implementing countermeasures to derailment / deviation as a new earthquake countermeasure in October 2009 in addition to anti-quake reinforcement of civil engineering structures.
In regard to conventional lines, we opened Minami Odaka Station on the Tokaido Line thereby striving to offer service that leverages an organized transportation infrastructure while at the same time revising the timetable with an emphasis on transportation in the Nagoya metropolitan area in March 2009.
In terms of sales, we expanded the usage area of "EX-IC Service" to the Sanyo Shinkansen section and launched service for corporate members in August 2009 while striving to stimulate usage by existing members. We also launched services such as adding an electronic money function to TOICA in March 2010. Furthermore, in addition to striving to offer various travel products through launching tourism promotion campaigns for Kyoto, Tokyo, Nara and Ise, we also strove to offer various travel products linked with these campaigns.
However, due to the impact of the swine flu, and government policy to reduce highway tolls in addition to the economic downturn, passenger kilometers for the Tokaido Shinkansen decreased by 7.3% year-on-year to 42.685 billion and passenger kilometers for conventional lines decreased by 3.1% year-on-year to 8.989 billion.
In regard to our bus business, we continued with efforts to make work more efficient based on fierce competition.
As a result of the above, operating revenues fell by 7.9% year-on-year to 1.1423 trillion yen, and operating income fell by 24.4% year-on-year to 272.0 billion yen.