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CENTRAL JAPAN RAILWAY COMPANY ANNUAL REPORT 2015 CENTRAL JAPAN RAILWAY COMPANY Contents CENTRAL JAPAN RAILWAY COMPANY COMPANY RAILWAY CENTRAL JAPAN CENTRAL JAPAN RAILWAY COMPANY Annual Report 2015 For the Year Ended March 31, 2015 ANNUAL REPORT 2015 ANNUAL REPORT CENTRAL JAPAN RAILWAY COMPANY Contents Annual Report 2015 A Message from Management 2 Key Measures and Management Strategy Key Measures and Capital Investment 4 Profile Safe and Reliable Transportation 8 ■Percentages of our market area in Japan as a whole Central Japan Railway Company (JR Central, also JR Central’s Market Area Transportation Service 12 known as JR Tokai) commenced operations in April Transportation result of the Area Tokaido Shinkansen (per day) The Chuo Shinkansen Using the 1987 upon the privatization and breakup of the other 76.3% ( As of October 2014) 23.7% Superconducting Maglev System 16 Japanese National Railways (JNR). The core of JR Population Central's operations is the Tokaido Shinkansen, the % Number of Sales and Marketing 18 ( As of January 1, 2014) 60.0% 40.0 Number of passengers main transportation hub linking Japan's principal trains in operation Technological Development and metropolitan areas of Tokyo, Nagoya, and Osaka, and Prefectural GDP Approximately Enhancement of Technical Capability / ( Nominal GDP) ( FY2013) 64.5% 35.5% a network of conventional lines in the Tokai Region Overseas Deployment of High-Speed Rail Systems 20 centered on the Nagoya and Shizuoka areas. JR 0 50 100 （%） 430,000 350 Affiliated Business 22 Central and its consolidated subsidiaries also promote ESG * Information affiliated businesses that are expected to generate synergic effects with the railway business. Engagement in Global Environment ■Population Density (As of the end of March 2014) Business structure/revenue situation Preservation, etc. 24 JR Central is also steadily moving forward with efforts aimed at the early completion of the Chuo Human Resources 28 Japan 100 (Base) Shinkansen using the Superconducting Maglev System (As a whole) JR Central mainly deploys the transportation business with the focus on Cooperation with Local Communities 29 in order to continually carry out its mission. JR Central’s Market Area 253 the railway business in addition to merchandise and other businesses, real Corporate Governance 30 estate businesses, and other affiliated businesses. The main focus is the Management Philosophy 0 100 200 Tokaido Shinkansen, which serves as Japan's main transportation hub Board of Directors, Audit and Supervisory Board Members, and ● Contribute to society through sound management connecting Tokyo, Nagoya, and Osaka. The Tokaido Shinkansen offers Corporate Officers 33 ● Provide modern, valued, friendly, and reliable safe and punctual transportation, which is unparalleled in the world. Its Corporate Data services revenue covers approximately 90% of the non-consolidated operating 34 ● Establish a cheerful, fresh, and active corporate revenue for JR Central. Profile / Organization Chart culture Unparalleled large 35 Consolidated Operating Operating Areas Revenues Composition Company History 36 volume/high-speed Other General Principles of Safety 6.8% Financial Highlights Real Estate (consolidated/non-consolidated) 37 ● Safety is the most important mission in the 2.4% Summary of Performance 38 transportation business transportation mode Merchandise and Other Financial Section 40 ● Safety is ensured based on compliance with rules 13.5% and strict execution of work and is built through Appendices continuous practice Financial and Transportation Data 68 ● Enforcement of confirmation and thorough communication are the most important aspects in Operating Environment 70 Transportation ensuring safety 77.4% International Comparison of Railway Operators 70 ● To ensure safety, we must cooperate together Operating Areas 72 beyond our official responsibility Financial Data Comparison of Three JR Companies Nagoya ● When in doubt, we must thoroughly consider and Tokyo Stock Information 73 take the measure that seems the safest Osaka Non-Consolidated Operating Revenues Composition Affiliated ＊Environmental, Social, and Governance. Companies appropriately Miscellaneous Businesses considering/responding to ESG issues and the existence of shareholders who 4.2% 0.7% make investments in response to such efforts by the companies are thought to lead to the solution/improvement of global environmental issues and social Conventional Lines issues and even to the sound development/expansion of capital markets, thus 7.6% contributing to the establishment of a sustainable society. [Remarks regarding forecasts, etc.] Future plans, forecast figures, etc. in this report are an outlook based on the information that is currently available for JR Central and may contain risks and uncertainty. Examples of potential risks and uncertainty include economic trends, business Tokaido environment developments, consumption trends, competition situation for JR Shinkansen Central and subsidiaries, and changes in relevant laws and legal provisions. 87.5% This report is compiled based on information available as of the end of May 2015 in principle. ●In this report, figures of financial information are truncated, while statistical data and all percentages are rounded. ●FY 2014 refers to the one-year period ending March 31, 2015. Note 1: Consolidated operating revenues composition is based on revenues from external customers Note 2: The total of items in the breakdown may not be 100% due to rounding. CENTRAL JAPAN RAILWAY COMPANY Annual Report 2015 1 A Message from Management A Message from Management transportation system through the efficient rolling stock operations, 4.Enhancement of Technical Capability which were made possible by the electrification of the Taketoyo Line In terms of enhancement of technical capability, we will further reduce in March 2015. Furthermore, we will continue newly manufacturing cost of maintaining and updating facilities, such as large-scale renovation, the Series Ki-Ha 25 railcars with the aim of further enhancing the through technological development. We will also promote the research transportation service by sequentially introducing it to the Kisei and and development of practical technologies that would lead to efficiency Sangu Lines, etc. In addition, we are scheduled to complete the in inspections/maintenance, etc., enhancement of transportation service, restoration construction of the Meisho Line (between Ieki Station and etc., accurate forecast and detection of major natural disasters, etc. Ise-Okitsu Station), which was affected in October 2009, along with We will utilize our technical capability in high-speed railway and promote the soil/water projects by the prefecture/cities. We are scheduled to marketing activities with the aim of establishing overseas projects targeting restart the operation of the entire line within FY2015. certain lines. We will also promote our initiatives to establish Japan's In terms of sales and marketing, we will reinforce tourist products high-speed rail system, which is based on the core principle of “Crash targeting "Express Reservation", "PLUS EX" services, and "50+" Avoidance”, as a global standard. In addition, we will continue offering members. Additionally, we will strive to proactively promote our sales technical consultation for Taiwan High Speed Rail Company. Furthermore, and marketing through the development of products utilizing permanent we will promote activities to use the Superconducting Maglev System in tourism resources, such as Kyoto and Nara, enhancement of various the north east corridor project of the United States. campaigns, and sales of products targeting foreign tourists. Furthermore, we will aim to increase the demand by deploying excursion packages using the Tokaido Shinkansen, Takayama Line, and Hokuriku Line by using Non-Railway Businesses the Kanagawa inauguration of the Hokuriku Shinkansen as an opportunity. In terms of passenger-related facilities, we will continue promoting the In terms of non-railway businesses, we will steadily promote the installation of new movable platform fences at Nagoya Station and Kyoto construction of the “JR Gate Tower” at Nagoya Station with the aim of Station and will gradually start their use. We will also continue promoting completing the framework in winter of FY2015. We will not only promote the installation of barrier-free facilities at stations, such as elevators, the formulation of the operation plan prior to the inauguration with the disabled-accessible toilets, and new braille blocks that indicate where aim of proactive striving to increase revenues but also promote PR/ platform edges are located. advertisement activities. We will also make efforts to further strengthen Chairman and Representative President and Representative Director: Director: the earning capability of the JR Central Group by revitalizing commercial Yoshiomi Yamada Koei Tsuge 3.Promoting the Chuo Shinkansen Using the Superconducting Maglev System facilities of station buildings and merchandise businesses, etc. The Chuo Shinkansen that employs the Superconducting Magnetic In the railway business, JR Central sets the highest priority on ensuring safety and reliability. JR Levitation railway system (hereinafter referred to as “Superconducting Central's fundamental policy is to stably and fully execute the long-term social mission to integrally Maglev System”) will enable us to continue our mission of operating a Global Environmental Issues maintain/develop the Tokaido Shinkansen, which serves as Japan's main transportation hub, and the high-speed railway linking
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