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JR Central’s History

2020 2015 Business Strategy 2020 Put N700S into Increase of the maximum speed to 285 km/h commercial service “12 Nozomi Timetable”

2014年 JR Central’s History 2003 “10 Nozomi Timetable” 1,844.6 ●Shinagawa station is opened 1,822.0 Since its establishment, the JR Central Group has worked to improve its transportation ●Maximum speed of all Tokaido 1,738.4 services and increase revenues placing top priority on safety, while at the same time working trains increases to 270 km/h 2013 ● Shift to train scheduled centered on“Nozomi” Put N700A into commercial service 1,652.5 to ensure operational efficiency and significantly strengthen its management base. We will 800 continue to maintain sound management and stable dividends for the future and strive to 1,559.4 develop our business. 1,486.6 1,508.3 2017 1,467.6 The“smartEX” service starts for the Tokaido 1,384.0 Shinkansen and the Sanyo Shinkansen 1,366.9 2008 662.0 1,278.3 The “EX-IC” service starts for the 1,240.6 Tokaido Shinkansen 1,215.3 1,221.6 656.1 600 1,188.3 578.6 1,052.3 2006 1,000 2001 “Express Reservation” service expands to the total 494.6 length of Tokaido and Sanyo Shinkansen lines “Express Reservation” is launched 874.6 for Tokaido Shinkansen 434.4 403.7 395.5 800 394.0 383.7 400 371.0 370.4 372.5 397.8 344.4 325.6 337.4 293.4 288.4 2008 JR Central made NIPPON SHARYO, LTD. 255.6 a consolidated subsidiary 1987 Central Railway Company 200 159.7 (JR Central) is established 1991 2000 JR Central takes over the 132.7 114.3 JR Central Towers are opened 122.4 Tokaido Shinkansen facilities 91.7 71.5 72.2 66.9 56.4 32.6 37.6 42.0 16.5 26.2 25.1

1987 88.3 90.3 92.3 94.3 96.3 98.3 2000.3 02.3 04.3 06.3 08.3 10.3 12.3 14.3 16.3 18.3 20.3（Year）

* Figures for the period between 88.3 and 89.3 are non-consolidated figures of JR Central as the period is before the announcement of consolidated financial results. Operating revenues (billion yen) Operating income (billion yen) Net income attributable to owners of the parent (billion yen)

Established by the Privatization and breakup of JNR Consistently Improve Transport Services on the Tokaido Shinkansen Establishment of a Solid Management Base

JR Central was born on April 1, 1987, following the privatization and With the inauguration of the Tokaido Shinkansen in between Tokyo and Osaka has now been FY1987 FY2019 Remarks breakup of Japan National Railways (JNR). 1964, the time required to travel between Tokyo and reduced to 2 hours and 21 minutes. With the Railway operation accidents Substantially JNR, the predecessor of JR Central, took over Japan’s railway business, Osaka was shortened to 3 hours and 10 minutes (4 timetable revision of March 2020, we realized (incidents per year) 60 17 reduced which was then a national enterprise, as a public enterprise in 1949. JNR hours at the time of inauguration) from 6 hours and the“12 Nozomi Timetable” that runs up to 12 Shinkansen Passenger volume supported the development of Japan as a means of transportation for the 30 minutes. Furthermore, with the introduction of the services (1 every 5 minutes on average) per hour Tokaido (10,000 people per day) 27.9 45.8 1.6 x Japanese people, but due to poor management of the public corporation, “Nozomi” in 1992, that time was shortened to 2 hours during busy hours. In July, we began commercial Number of services 231 1.6 x it incurred debts of over 30 trillion yen, including the creation of new and 30 minutes. operation of the new Shinkansen rolling stock (trains per day) 378 lines with unclear management responsibilities and disregard for In October 2003, the investment in rolling stock and N700S, which incorporates the results of our Maximum speed 220 +65km/h profitability. At the same time, it fell into a serious state of being unable ground facilities that we had continuously engaged accumulated technological development, and we (km/h) 285 to respond quickly to global trends. in for approximately 15 years culminated with the are making use of the Tokaido Shinkansen even *2 Operating revenues (billion yen) 874.6 1,844.6 2.1 x Under these circumstances, the“JNR reform” was an effort to review upgrading of the maximum speed of all trains to 270 more convenient. Operating

results *2 the role of the railway business operated by JNR for the future. In 1987, km/h and the drastic timetable revision that resulted in Operating income (billion yen) 71.5 656.1 9.2 x as part of administrative reforms, the operations of JNR were passed a maximum of seven Nozomi services operating each on to 11 succeeding corporations with the aim of carrying out sound hour. Net income attributable to *2 owners of the parent (billion yen) 16.5 397.8 24.1 x corporate management by privatizing and breaking up the transportation With the introduction of the“10 Nozomi Timetable *3 *5 operations of JNR, rebuilding (operating up to 10 Nozomi services in both Long-term debt (trillion yen) 5.5 1.8 -3.6 trillion yen the railway business as a directions)” in 2014, and the increase in maximum Operating Revenues of Consolidated *4 means of transportation speed to 285 km/h in 2015, the shortest travel time 52.6 12.1 x Subsidiaries (billion yen)*1 636.6 for the people, and further developing it for the future. *1Simple aggregation *2 Non-consolidated figures *3 Figures for FY1991 *4 Figures for FY1989 *5 Excluding long-term debt for the Chuo Shinkansen Since the privatization and breakup of JNR, JR Central has steadily progressed as a Series 0 Series 100 Series 300 Series 700 Series N700 N700A N700S private company, inheriting the public and social missions of JNR. Transition of

Photographs from the time of privatization Shinkansen “Hida #1” departure ceremony (April 1, 1987, at Station) rolling stock

8 CENTRAL JAPAN RAILWAY COMPANY Annual Report 2020 CENTRAL JAPAN RAILWAY COMPANY Annual Report 2020 9