Odakyu Electric Railway

Basic Information

Stock Code: 9007
Industry: Land Transportation Industry
Category Detail: Land Transportation
Prefecture: Tokyo
Establishment Year: June 1948
Listing Year: May 1949
Official Website: https://www.odakyu.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Tobu, Tokyu, Keio, Keisei Electric Railway, JR East, JR West, JR Central, Tokyo Metro, Kintetsu Group Holdings, Hankyu Hanshin Holdings, JR Kyushu

Overview

Odakyu Electric Railway is a major land transportation company founded in 1948, with its core business centered on railway operations in the Tokyo metropolitan area, expanding into real estate and distribution as a community-oriented comprehensive enterprise.

Current Situation

Odakyu Electric Railway recorded consolidated sales of approximately 410 billion yen and operating profit of approximately 50.8 billion yen for the fiscal year ending March 2024, maintaining a stable financial base. In its mainstay railway operations, it is promoting quadruple-tracking projects mainly on the Odawara Line between Shinjuku and Odawara, enhancing transportation capacity through improved limited express and rapid services. In real estate and distribution, it is actively investing in commercial facilities and housing developments along the lines. It is advancing operations with sustainability in mind, including Platinum Kuremin certification and station barrier-free improvements. Recently, it has focused on new mobility services such as MaaS initiatives and the introduction of the 'EMoT' smartphone app. In the medium to long term, it aims to complete quadruple-tracking, introduce new technologies, and develop areas along the lines as growth drivers, with strategic goals by 2030 to enhance regional value and diversify revenue sources.

Trivia

Interesting Facts

History of revival after separation from Dai-Tokyu
Romancecar has won numerous Railway Friends Association Blue Ribbon Awards
First railway operator in Japan to install AEDs in trains
Planning linkage with U.S. military base return for Tama Line extension
Operates its own credit card 'OP Credit'
Owns qualifications for JR Freight electric locomotive engineers for railcar transport
Rare private railway with own vehicles running through to multiple JR lines
PR mascot 'Mokoron' is a 2023-born child-rearing support character
Shinjuku Station has the world's largest number of boarding/alighting passengers as a private rail terminal
Operates mobile reservation 'Romancecar@Club' for limited express tickets
Early introduction of English, Hangul, and partial Chinese on station signs
Full-line introduction of centralized level crossing monitoring system in 2008
Group corporate message is 'Think of Someone Today'
History of resident opposition movements during elevated quadruple-tracking project
Conductor and crew uniforms feature new designs by renowned designer

Hidden Connections

Once held large stake in Sagami Railway, deepening ties, but now distant
Only major Japanese railway company with own vehicles through-running to two JR lines
Past discussions on owning a professional baseball team did not materialize
Influences fictional railway models in Fujiko Fujio works
Frequently appears in dramas and movies along the line, contributing to Japanese culture
Rail vehicle technology with the most Blue Ribbon Awards from Railway Friends Association
Collaborated with Yokohama Bank for Japan's first ATM installation at all stations
Station level crossing monitoring video system highly rated as industry-leading

Future Outlook

Growth Drivers

Increased capacity and reduced delays from quadruple-tracking completion
Expanded user convenience through MaaS platform
Growth in line-side urban development and real estate business
Service innovation through ICT technology utilization
対応 and expansion of environmentally considerate transportation business
Strengthening of community-oriented customer services
Operational management efficiency via machine learning and AI
Competitive strengthening through integration of diverse transport modes
Introduction of new technologies supporting safe and secure transport
Management strategy enhancing sustainability
Subscription service rollout as new revenue source
Service strengthening anticipating tourism demand recovery

Strategic Goals

Completion and operation of Shinjuku-Odawara Line quadruple-tracking project
Achievement of decarbonization plan for environmental load reduction
Full rollout of MaaS business and strengthened regional and external collaboration
Realization of over 80% digital service adoption rate
Barrier-free equipment complete at all stations
Line-side redevelopment contributing to regional economic revitalization
Ongoing promotion of technology investments for safe operations
Maintaining customer satisfaction above 90%
Development of products and services responding to diverse customer needs
Maintaining financial soundness supporting sustainable management

Business Segments

Rail-Related Equipment and Services

Overview

Business supporting the maintenance and improvement of rail networks.

Competitiveness

Accumulated rail technology and operational expertise

Customers

Railway operators
Local governments
Construction companies
Transportation consultants

Products

Track construction
Vehicle depot operations
Signal equipment
Rail safety systems

Real Estate Development and Management

Overview

Providing asset development and maintenance management around stations.

Competitiveness

Strong collaboration system with lines

Customers

Housing manufacturers
Commercial facility operators
Real estate investors
Corporations

Products

Urban development
Commercial facility planning
Leasing management
Facility operations

Advertising and PR Services

Overview

Conducting advertising in stations and along the lines.

Competitiveness

Access to a wide range of passengers

Customers

Advertising agencies
General companies
Event planning companies

Products

Station advertising
In-car advertising
Event operation support

Logistics and Transportation Services

Overview

Logistics business playing a part in regional transportation infrastructure.

Competitiveness

Utilization of Tokyo metropolitan network

Customers

Logistics companies
Manufacturing industry
Trading companies

Products

Freight transportation
Logistics center operations
Delivery services

IT and Information Systems

Overview

IT solutions for railways and related businesses.

Competitiveness

App development promoting MaaS

Customers

Internal management departments
Group companies
External clients

Products

Boarding system development
Mobile apps
Reservation management systems

Tourism Business Support

Overview

Supporting tourism revitalization in areas along the lines.

Competitiveness

Community-based planning capabilities

Customers

Tourist facilities
Local governments
Travel agencies

Products

Tourist pass planning
Regional collaboration events
Tourist information services

Environment and Safety Services

Overview

Rail safety and environmental management-related business.

Competitiveness

Track record of first nationwide earthquake warning introduction

Customers

Rail facility management
Third-party organizations
Security-related companies

Products

Safety monitoring systems
Barrier-free improvements
Earthquake early warning systems

Operation Management Support

Overview

Supporting efficient train operations.

Competitiveness

Technological capabilities for improving operational efficiency

Customers

Rail management departments
Other railways
Relevant authorities

Products

Operation monitoring systems
Centralized level crossing monitoring
Digital ATS

Education and Training Services

Overview

Training and education for rail technicians.

Competitiveness

Operation of Motive Power Engineer Training Center

Customers

Employees
Group companies
External participants

Products

Train driver training
Safety education
Rail technology training

Retail and Dining Services

Overview

Retail and dining business supporting life along the lines.

Competitiveness

Community-based sales network

Customers

Residents along the lines
Travelers
Station users

Products

Odakyu Department Store
Restaurant operations
Food sales

Financial and Credit Services

Overview

Providing a wide range of financial services within and outside the group.

Competitiveness

Early track record of station ATM rollout

Customers

General customers
Group companies
Business partners

Products

OP Credit Card
ATM services
Payment systems

Facility Management and Maintenance

Overview

Maintenance and management business for transportation-related facilities.

Competitiveness

Track record in diverse facility対応

Customers

Internal facility management
Group companies
External facilities

Products

Building management
Construction material sales
Maintenance services

Competitive Advantage

Strengths

Stable transportation network as a leading private railway in the Tokyo metropolitan area
Diversification through line-side real estate and distribution businesses
Advanced rail technology and safety management system
Strong brand power and community closeness
Innovative service rollout (MaaS app introduction, etc.)
Excellent customer service and convenience
Comprehensive rail and bus transportation network
Solid financial base and sustainable management
Revenue diversification through investments in multiple areas
Stable shareholder base and continuous growth
Regional collaboration and cooperation with administration
High recognition through unique brand mark and crest
Products and services catering to a wide customer base
Introduction of advanced safety and disaster prevention technology
Trust based on rich history and tradition

Competitive Advantages

Convenience of rail network connecting urban center to tourist spots
Service innovation using digital technologies like MaaS
Business synergies from multifaceted group company structure
Rail operations emphasizing safety and comfort
Flexible route and service rollout responding to regional needs
Contribution to comprehensive urban development including line-side development
Comprehensive products and services for diverse customer segments
Unique points service and customer loyalty
Operational efficiency and cost management leveraging technology
Management strategy incorporating environmental and social considerations
Comprehensive safety education and employee training
Realization of through-service with other rail networks
Barrier-free improvements and convenience enhancements at major stations
Comprehensive station-area facilities responding to diverse needs
Capacity to respond to future transportation demand increases through additional investments

Threats

Risk of passenger decline due to population decrease and aging society
Decline in users due to impacts like COVID-19 pandemic
Intense competition with rival companies in the transportation market
Changes in competitive environment due to advances in new transportation technologies and autonomous driving
Further tightening of regulations and safety standards
Increased risk of natural disasters due to climate change
Delays in line-side development or opposition from residents
Cost increases from fluctuations in fuel and electricity prices
Decline in advertising and commercial facility revenue due to economic downturn
Stagnation in operations and maintenance due to engineer shortages
Operational challenges from increasing competition in transport IC cards
Profitability and funding risks for new investment projects

Innovations

2024: Group corporate message refreshed

Overview: Formulated 'Think of Someone Today' to foster group brand unity and promote line-side value enhancement.
Impact: Improved customer awareness and strengthened brand image

2023: Smart mobility service introduction

Overview: Full rollout of MaaS app 'EMoT' for smartphones, starting diverse mobility services.
Impact: Enhanced user convenience and establishment of new revenue sources

2021: Romancecar Museum opens

Overview: Opened a base for preserving and disseminating railway culture to expand fan base.
Impact: Enhanced brand value and strengthened fan community

2020: New 5000 series commuter train introduction

Overview: Introduced latest commuter vehicles with improved energy efficiency and comfort to enhance service quality.
Impact: Improved user satisfaction and operational efficiency

2022: Flat 50 yen child IC fare across all sections

Overview: Significantly reduced child IC fares as a child-rearing support measure.
Impact: Future customer base strengthening through increased usage

2022: All-station barrier-free surcharge system operations start

Overview: Applied 10 yen surcharge under rail station barrier-free system to promote facility improvements.
Impact: Improved usage environment for disabled and elderly

2020: Digital ATS (D-ATS-P) fully deployed across all lines

Overview: Enhanced safety and operational efficiency by deploying advanced signal control system across all routes.
Impact: Accident prevention and improved punctuality

2020: Infection response subscription expansion

Overview: Expanded fixed-fee usage model for line-side restaurants using EMoT to promote revenue diversification.
Impact: New customer touchpoints and stable income

2023: New timetable starts with quadruple-tracking completion improving transport

Overview: Realized congestion relief and stable operations with completion of quadruple tracks between Yoyogi-Uehara and Noborito.
Impact: Improved user satisfaction and reduced transport delays

2021: Line and station automatic announcements refreshed

Overview: Employed famous voice actors for automatic announcements at major stations to improve convenience and image.
Impact: Providing comfortable boarding experience

Sustainability

Agreement with Kanagawa Prefecture to promote SDGs
Promotion of barrier-free at all stations
Completed AED installation in all trains
Expanded introduction of energy-saving vehicle technologies
Promotion of social contribution activities for regional environmental conservation
Sustainable urban development and line-side creation
Promotion of plastic-free and adoption of environmentally friendly products
Work style reform for employees and diversity promotion
Utilization of earthquake early warning system in train operations
Group-wide environmental load reduction plan formulation
Contribution to CO2 reduction through promotion of public transport use
Safe and secure transportation provision leveraging rail technology