"JR-West Group Medium-Term Management Plan 2017" Overview of Major Initiatives

"JR-West Group Medium-Term Management Plan 2017" Overview of Major Initiatives 1

Safety

Legend

Black text: Listed when the Medium-Term Management Plan was released (March 13, 2013) Orange text: Added after the release of the Medium-Term Management Plan

※Timing has not yet been determined

As of April 30, 2015

Investment in maintenance to

FY ended March 2014 FY2015 FY2016 FY2017 FY2018 FY2019~

Strengthen track facilities When replacing track facilities, we will strengthen facilities by transitioning from standard-length rails to continuous welded rails,

(prolongation of rail length replacing wood ties with prestressed concrete ties, and using plastic ties on bridges.

with welding , etc.)

sustain and

Maintain safety and

To secure safe, reliable transport service on the Sanyo Shinkansen, we will evaluate expected future risks that could affect structures and implement countermeasures,

enhance the functions of existing

increase durability of Sanyo such as reinforcement measures.

Shinkansen structures

facilities

Complete replacement of

Sanyo Shinkansen ATC

system: "New ATC"

On-board oriented train control system (ground

When replacing facilities, we will strive to improve riding comfort

by transitioning to systems utilizing a smooth brake control method that is suitable for the characteristics of the rolling stock.

▼Spring 2017: Transition to new control method

As an addition to existing ATS functions, this system backs up crew members through means such as preventing excessive speed and stop-light violation or preventing incorrect door operation and excessive speed in planned speed reduction zone associated with construction work. We have appro ved the introduction of this system on the Sanyo Line (Shiraichi-Iw akuni) in the Hiroshima area. We continue to consider the possibility of installing this system on t he Fukuchiyama Line (Amagasaki- Sasayamaguchi) and Tokaido/Sanyo Line (Maibara-Kamigori) in the Kansai urban area.

coil) "New Safety System"

Approved introduction

in Hiroshima area Commenced installation of ground equipment in Hiroshima area

Spring 2019:

Commence usage
in Hiroshima area

We are introducing a system for detecting abnormal behavior in trains through which the shock of a derailment automatically activates the one touch operative emergency device

Train abnormality detection (TE device) and implement an emergency stop of the train. In addition, it prevents concomitant accidents by stopping nearby t rains through the transmission of an emergency

system

stop signal.

Installed first in 521 series (3rd order batch), and gradually expanded introduction thereafter

Automatic platform

We plan to install these gates in stations w here it is difficult to install conventional movable platform gates, such as stat ions that handle a variety of trains w ith different

numbers of doors or stations where trains stop in different locations.

Commenced operating tests at Rokkomichi Station

gates(rope style)

Commenced operating tests

at Sakurajima Station

Approved practical application and continued use

Spring 2016: Install in Takatsuki Station and systematically increase thereafter

Safety

We plan to systematically install movable platform gates at stations that are serviced by trains with the prerequisite number of doors and

Movable platform gates

that are used by more than 100,000 people each day.

Spring 2016: Install in Katamachi Line Kyobashi Station

and systematically increase thereafter

Investment to realize higher levels of safety

Earthquake/tsunami countermeasures

Shinkansen derailment prevention measures

Equipment to support to

Measures w ill be implemented to increase the earthquake resistance of structures, etc.,

and to facilitate more rapid evacuation guidance in the event of flooding due to tsunamis.

We plan to complete these measures in 2015 in the sectors that have the highest priority in consideration of the likelihood o f earthquakes, etc. (First priority sector: Shin-Osaka - Himeji) Currently, we are in the process of determining the second priority sector, with consideration for the possibility of derailment due to earthquakes and for known active fault lines.

We are committed to preventing man-vehicle collision accidents by oncoming trains, such as in the event of a communications brea kdown between the employee who stops

watch for oncoming trains the train and the employee at the work site who watches for oncoming trains. To that end, we introduced equipment to support the employees who are assigned to watch for

when work is being done on oncoming trains by providing emergency notification to crew members and ensuring that the train stops.

tracks

May 2014: Introduced

To respond to the intensification of natural disasters, we will increase the disaster resilience of our operations, introduce meteorological

Response to intensification disaster response systems, and optimize rainy weather operation regulations.

of natural disasters

Commence usage of meteorological disaster response system in the Kansai urban area

We will work to ensure safe train operation and reliable transportation and improve transportation service quality by extending anti-wind barriers to line

Anti-wind measures on the segments that frequently suffer from operating limitations imposed due to strong w inds and by installing facilities for turn back operation

Kosei Line

* Reference: Already installed for Hira-Omi-Maiko (Dec. 2008)
and Omi-Maiko-Kitakomatsu (Feb. 2012)

January 2016: Install anti-windbarriers (Shiga-Hira)

Spring 2019: Install facilities for

turn back operation (Wani)

Wind resilience measures on the Hokuriku Line

We will work to ensure safe and reliable transportation and improve transportation service quality on the Hokuriku Main Line by installing anti-wind barriers
on Tedorigawa-Bashi Bridge and Kakehashigawa-Bashi Bridge, which frequently suffer from operating limitations imposed due to strong winds.

June 2016: Install the barrierson Tedorigaw a-Bashi Bridge (Komaiko-Mikaw a)

and Kakehashigawa-Bashi Bridge (Komatsu-Meiho)

"JR-West Group Medium-Term Management Plan 2017" Overview of Major Initiatives 2

Safety, Technologies, Shinkansen

Legend

Black text: Listed when the Medium-Term Management Plan was released (March 13, 2013) Orange text: Added after the release of the Medium-Term Management Plan

※Timing has not yet been determined

As of April 30, 2015

Customer

Satisfaction

Grasp customer expectations and work to meet diverse needs

Improvement of quality of facilities used by customers

On-board oriented train control system (wireless)

Battery-powered trains

FY ended March 2014 FY2015 FY2016 FY2017 FY2018 FY2019~

We will enhance the guidance tools available to provide information regarding transportation disruptions (operating status
information available on Company website, station displays, etc.).
Plan to renovate and beautify customer restrooms

With the objectives of increasing safety, such as for emergency stops and prevention of excessive speed during special slow -speed operations; of saving labor in maintenance operations; and of streamlining facilities, we will complete development of the on-board oriented train control system (wireless) during the period of the Medium-Term Management Plan. With consideration for the results of testing, etc., we will set a target date for practical implementation.

With the objective of reducing energy consumption, during the current Medium-Term Management Plan w e intend to produce test trains and implement performance testing. We

w ill focus on practical implementation during the next Medium-Term Management Plan.

Technologies

Railway operations system change

Meteorological disaster response systems

Transition from ground- based inspections to on-

Commence performance tests

We will begin using a meteorological disaster response system in the Kansai urban area to reduce human error risks when
operating limitations are imposed and shorten times of non-operation (FY2017).

Begin usage in Kansai urban area

Inspections currently conducted by human hands will be automated by the equpment on cars to improve inspection quality and reduce labor requirements, and we will
develop an understanding of facility aging processes to contribute to the development of more optimal maintenance plans.

board inspections

Began designing equipment specifications

Spring 2018: Commence usage on certain Shinkansen lines
Spring 2019: Commence usage on
certain conventional lines

Simplification of railway equipment

By simplifying complex railway equipment, we will optimize facility maintenance and operation frameworks and thereby create a railway system
that boasts high levels of safety and reliability along with superior business continuity measures.

Gauge change trains

Technical development of gauge change trains

Technical development of gauge change trains is intended to facilitate direct operation between Shinkansen and conventional lines with the objective of increasing convenience. Aiming to put these trains into practical use, we will implement a technical survey of Hokuriku route specifications and advance development ventures targeting practical application.

Opened the Tsuruga GCE Test Line

Introduction of N700A new model

Enhance on-board communications environment (expand area in which mobile phones can be used)

To increase safety and reliability, we introduced one set of the N700A new model in 2013, and will also introduce four sets in FY2016 and four in FY2017. Such trains will be gradually increased thereafter. In addition, to realize safer, more-reliable transport, we will modificate N700 series rolling stock to incorporate some of the functions of the N700A series.

Modificate existing N700 series rolling stock (3 sets in FY2014, 8 sets in FY2015, 5 sets in FY2016)

Introduce new N700A series rolling stock (1 set in FY2014, 4 sets in FY2016, 4 sets in FY2017)

We commenced service up to Shin-Yamaguchi in March 2015. Service between Kokura and Hakata is scheduled to start in 2015.

Expanded area to Shin-Yamaguchi

Start service between Kokura and Hakata

In response to the strategies of airline companies, w e w ill make our services more accessible to customers through means such as low ering prices .

Measures to respond to Launched "Super Haya-toku" early discount tickets (Shin-Osaka/Shin-Kobe-Kokura/Hakata/Kumamoto/Kagoshima-Chuo/Nagasaki/Oita)

Shinkansen

"Enhance"

Sanyo

Shinkansen

competition from airlines

Increase convenience of "e5489""EX reservation" Internet reservations

Encourage the use of

Kodama

Services for senior customers

(Okayama/Hiroshima- Kumamoto/Kagoshima-Chuo)
Launched "Waka-toku Haya-toku" early discount tickets for under 29 (Shin-Osaka/Shin-Kobe-Kokura/Hakata)

Enhance functions in line w ith the needs of customers

We conducted the renewal of the 500 series and other measures.

Installed 4-seat rows for reserved seats on 500 series

Outfitted 500 series rolling stock to be play space for children(Plarail Car)

We are providing discounted products and exclusive travel packages for senior members of JR-West Zipangu Club and Club DISCOVER WEST.

Commenced new "Otonabi" membership service for senior citizens, and began providing attractive discounted products

as well as travel packages carefully designed through collaboration with regional communities

"JR-West Group Medium-Term Management Plan 2017" Overview of Major Initiatives 3

Kansai Urban Area

Legend

Black text: Listed when the Medium-Term Management Plan was released (March 13, 2013) Orange text: Added after the release of the Medium-Term Management Plan

※Timing has not yet been determined

As of April 30, 2015

Enhance the

New rolling stock(Osaka

Loop Line, etc.)

Increase the appeal of

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019~

We w ill improve transport quality by implementing plans to gradually replace the old rolling stock that w e inherited from Jap anese National Railw ays (JNR).

Introduce 24 new rolling stock on JR Kyoto, Kobe Line

Introduce 122 new rolling stock on Hanwa Line (-FY2018)

Introduce 168 new 323 series rolling stock on Osaka Loop Line (FY2017-FY2019)

Move ahead with development of spaces inside stations and under elevated tracks

Osaka Loop

Line, etc.

spaces under elevated tracks and around stations

VIERRA morinomiya

VIERRA tamatsukuri

Morinomiya

Momodani

Station beautification /

improvement

Morinomiya Station will be the first in a series of stations at which we will conduct beautification and improvement measures in conjunction

with business development.

We will renovate restrooms at almost all Osaka Loop Line stations by the end of FY2017.

Kansai urban area

Next- generation network

Promote construction of Osaka Higashi Line (Northern part)

Promote new underground station project accompanying Umekita development

▼Opening March 2019

In April 2011, decision was made about urban planning project. The project was commenced in February 2015 (scheduled to open in spring 2023).

Feb 2015: Commenced project

"Improve"

Opening new stations

▼Spring 2016 Maya (provisional name)

Higashi-Himeji(provisional name)

Spring 2018 JR Sojiji(provisional name)

Kizuri(provisional name)

New stations Over-track stations Station improvement

Building over-track stations

▼May 2013: Izumi Fuchu

▼July 2013: Yao

▼Sep 2013: Kishibe Phase II

▼Nov 2013: Settsu-Motoyama

Spring 2019: JR Shichijo(provis iona l name)

▼Winter 2015: Inae
▼Spring 2017: Azuchi

▼2017: Zeze

Station improvement

▼June 2013: Tennoji Apr 2014: Conducted drive to attract integrated daycare center to Otsu Station

▼Aug 2013: Sannomiya ▼Nov 2014: Amagasaki ▼Spring 2016: Takatsuki

▼Spring 2018: Ibaraki

Others

Expansion of IC card area

Working together with the regional community, we will examine the possibility of expanding our IC network in the West Japan area.

Aug 2015: Kisei Main Line (Miyamae-Kainan)

Mar 2016: Kakogawa Line (Hioka-Nishiwakishi),

Kishin Line (Harima-Takaoka- Harima-Shingu), Bantan Line (Kyoguchi-Teramae)

Dec 2013 Decided name and logo

▼Spring 2016: Opening

Kyoto Railway Museum

Feb 2015 Established Kyoto-Umekoji Area Invigoration Committee (provisional name)

"JR-West Group Medium-Term Management Plan 2017" Overview of Major Initiatives 4

Other West Japan Area

Legend

Black text: Listed when the Medium-Term Management Plan was released (March 13, 2013) Orange text: Added after the release of the Medium-Term Management Plan

※Timing has not yet been determined

As of April 30, 2015

New rolling stock

FY ended March2014 FY2015 FY2016 FY2017 FY2018 FY2019~

In conjunction w ith the introduction of a new safety system in the Hiroshima area,

(introduction of 227 series w e w ill gradually replace aged rolling stock inherited from Japanese National Railw ay (JNR).

Enhance the Hiroshima area city network and leverage the characteristics of the

Hiroshima

rolling stock)

New station (Shin- Hakushima)

New station (Jike

(provisional name)) Kabe Line extension

Mar 2015: Commenced operation (introduce 276 rolling stock by the end of FY2019)

▼Mar 2015: Opening

▼Spring 2017: Opening
▼Spring 2017: Opening

station area as Transition to over-track station in Hiroshima,

▼Spring 2018: Opening

a terminal station

Eki-Naka (in-station) development

Relocation of Hiroshima General Hospital of

West Japan Railway Company to new building

Destination campaigns

Construction is under way with the aim of opening in 2015.

▼Summer 2013: Hiroshima destination campaign

▼Jan 2015: Saijo

▼Spring 2016: Hatsukaichi

Other West Japan Area "Invigorate

"

Building over- track stations and station improvement

Building over-track stations

Station improvement

▼Apr 2015: Bitchu Takahashi

▼Sep 2014: Tokuyama

▼Oct 2015: Shin-Yamaguchi

▼Mar 2014: Opening of Shimonoseki open promenade, station building

▼Spring 2017: Onoura
▼Spring 2018: Iw akuni

Introduction of Twilight

Express Mizukaze

We are preparing operating a new s leeper train to make railway travel in the Wes t Japan area more enjoyable.

Spring 2017: Commence operation

Others

Production of new passenger cars for SL Yamaguchi (retro passenger cars)

Massive SL repair initiative (return of D51 to main lines)

We will begin producing new passenger cars based on old model-car for the SL Yamaguchi.

A massive repair initiative will be undertaken to bring the JNR Class D51 back to main lines.

Sep 2017: Commence operation

Commence operation starting in FY2018

Improvement of

We will refurbish rolling stock, enhance facilities

Fall 2015: Introduce refurbished rolling stock (gradually introduce up until end of FY2019)

Thunderbird limited express at stations serviced by this train, and

Install Western-style toilets at serviced stations

service quality

Introduction of CTC in

Okayama area

take steps to improve transportation quality.

▼Spring 2016: Start use

Increase number of departure time displays at serviced stations

Fall 2013: Pre-Wakayama Destination Campaign Spring 2016: Okayama Destination Campaign

Destination campaigns

(travel campaigns)

Fall 2014 Wakayama Destination Campaign

Summer 2015 Pre-Okayama Destination Campaign

Fall 2017: Yamaguchi Destination Campaign

"JR-West Group Medium-Term Management Plan 2017" Overview of Major Initiatives

Business Development

Legend

Black text: Listed when the Medium-Term Management Plan was released (March 13, 2013)

5

As of April 30, 2015

Orange text: Added after the release of the Medium-Term Management Plan

※Timing has not yet been determined

FY ended March2014 FY2015 FY2016 FY2017 FY2018 FY2019~

Strengthen products,

Conversion of stores to Seven- Eleven Japan allied stores

Development and renewal inside stations, etc.

We will renovate existing stores (approximately 500) to employ the allied store model, and also establish new allied stores.

▼Fukuyama Settsu-Motoyama

▼Amagasaki

Eki Marche Shin-Osaka (phase I in Mar 2015, phase II in winter 2015, phase III in spring 2016)

▼Related to opening of Hokuriku Shinkansen (Toyama, Kanazaw a, etc.)

Tennnoji(east exit)

services, and operating capabilities

▼Liv

▼Tennoji MiO

▼LUCUA

▼Morinomiya

▼Kusatsu

▼Momodani

▼Zeze

▼Ibaraki

Shopping center renewal, etc.

(Sumiyoshi) ▼Porta (Kyoto)

▼The CUBE (Kyoto)

▼Shamine Tottori

Toya Marche

Sun Station Terrace Kurashiki

Kanazawa 100bangai Rinto

MEDIO Shin-Osaka(phase I in Dec 2013, phase II in June 2014, phase III in June 2015, phase in Spring 2017)

Kanazawa 100bangai Anto

▼PLiCO ROKKOMICHI ▼Station Plaza Akashi

Budget hotels

▼Nagoya ▼Asakusa, Shinsaibashi, Hiroshima

Expand budget hotel operations (Tokyo metropolitan area;

Kansai Urban Area: Tennoji, Umeda; etc.)

Actively develop businesses in

Real estate development

Urawa Tokiwa

The Residence

J.GRAN SHIN-NAGATA,

J-GRAN SENRI-CHUO

Tenjin , Fukuoka city

J.GRAN SENRIOKA

GRACIA CITY KAWASAKI DAISHI GAWARA

J,GRAN L IBARAKI

Business

Development

cities outside our railways

Participate in projects around major stations

/leasing operations

Shopping centers

Real estate development

/leasing operations

J.GRAN ABENO FUMINOSATO,

J.GRAN GARDEN KITAHANADA,etc.

Maya City NADA EXCEED

J.GRAN L SAKAI, Kyoto Katsuragawa Tsumugi no Machi

Nagaranishi

Maya City COMFORT & DELIGHT

J.GRAN GARDEN IBARAKI

Katayama, Suita city

Tsukaguchi (station building, condominiums)

▼Area in front of

Kishibe Station

"Develop"

Major stations

Himeji(station building)

Sannnomiya(station inside)

Hiroshima (area above the tracks) (phase I in Nov 2014, phase II in spring 2018)

Sannnomiya

(station building)

Make full use of land and other assets

Development projects at

stations, surrounding areas, Nada

and former company

Shimonoseki(station building)

Katayama, Suita city(Yamato University)

Koshienguchi

Hirooka, Kanazawa city(office)

Yonago (electronics store)

Hiroshima(under elevated tracks)

Hirooka, Kanazawa city

Fukui (hotel)

Hiroshima

(station building)

Improve appeal by combining existing

housing sites

Revision of function allocation in commercial zones

Okayama (home center)

Tottori (Starbucks)

▼LUCUA 1100

▼Mastue

Otsu

Takatsuki (including elevated portions)

20th anniversary of Kyoto Station building opening

businesses

Select and concentrate

management resources

Reorganized Group companies (real estate, San-in area)

Transferred the golf business

Reorganized Group companies (Osaka area shopping centers)

Development of new businesses in lifestyle- related service fields

Health-related service

In-station dispensing pharmacies (Osaka)

In-station dispensing pharmacies (Shin-Osaka, Amagasaki)

Car-sharing directly connected to stations (Shin-Osaka, etc.)

▼Hofu ▼Kitayama, Amagasaki

Take on the challenge of

business (rehabilitation

service business)

▼Hiroshima, Mihara

▼Fushimi ▼Aw aji

new business fields

Agriculture-related

businesses

Food-related businesses

Others

Acquired capital in Farm Alliance Management

Established business alliance with SHINMEI Holding

Acquired capital in Gomangoku Chisatosanso

▼Established business alliance with Glocal-i

Commenced Internet sales targeting overseas customers(JAPAN SQUARE)

Photovoltaic power generation business in Asa

"JR-West Group Medium-Term Management Plan 2017" Overview of Major Initiatives 6

Topics

Legend

Black text: Listed when the Medium-Term Management Plan was released (March 13, 2013) Orange text: Added after the release of the Medium-Term Management Plan

As of April 30, 2015

※Timing has not yet been determined

Hokuriku Shinkansen and invigoration of Hokuriku region

Safe and reliable transportation

Increasing mobility between

Hokuriku region and Tokyo and invigoration of the region

New rolling stock

Increase convenience of "e5489" Internet reservations

Destination campaigns

(travel campaigns)

Introduction of Hanayomenoren sightseeing train on Nanao Line

New concept train on

Johana Line and Himi Line

FY ended March 2014 FY2015 FY2016 FY2017 FY2018 FY2019~

Opened Kanagawa segment of the Hokuriku Shinkansen in March 2015, and introduced 11 sets of new rolling stock. Enhance functions in line with the needs of customers

"e-kippu""e Haya-toku1""WEB Haya-toku" early discount tickets

Fall 2014: Pre-Hokuriku Destination Campaign

Fall 2015: Hokuriku Destination Campaign

We will introduce this train on the Nanao Line (Kanazawa-Wakuraonsen) in conjunction with the Hokuriku Destination Campaign.

▼Oct 2015

This train will be in operation before the start of the Hokuriku Destination Campaign.

Fall 2015

Enhance

Enhancement of lineup of products for inbound

We will arrange tourism routes in the West Japan area by enhancing our lineup of products for inbound visitors.

Saiyukiko Discover West Japan project

Capturing

product lineups visitors as part of arranging

wide-area tourism routes

Refinement of signs in stations, trains, and station buildings

Improve ability to

Enhance lineup of Sanyo Shinkansen usage products

Create Hokuriku Shinkansen usage products

The guidance and sales systems as well as guidance tools of stations will be enhanced.

Introduce line identification symbols

We will promote free, public Wi-Fi services.

▼May 2014: Expanded availability from 11 stations to 24

inbound

tourism demand

cater to needs of inbound visitors

Provision of public Wi-Fi services (stations, trains)

Increasing number of duty-

July 2013: Made available at 11 stations

Dec 2014: Made available on limited express Haruka

Make available on new 323 series rolling stock on Osaka Loop Line

March 2015: Made available at Kansai Airport Station (free, public Wi-Fi service without password protection)

Enhance promotion

free shops and revision of payment methods

Communication of West Japan area appeal through overseas bases, etc.

We will increase the number of duty-free shops at in-station commercial facilities, and also revise payment methods.

We will communicate the appeal of the West Japan area through our network of overseas bases and SNS pages.

April 2014: Established website targeting Taiwan(jrwest-yoyo.com.tw)

July 2015: Establish new overseas base (Singapore)

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