Central Japan Railway : FY2023.3 Year-End Investor Meeting (Presentation Handout with Script)1.3MB

Year-End Investor Meeting FY2023.3

(Fiscal Year Ended March 31, 2023)

I. Management Approach

II. Dividends

Shunsuke Niwa

President,

Representative Director

Central Japan Railway Company

April 27, 2023

• I am Niwa, the new President of Central Japan Railway Company since April 1. Thank you.
• I would like to explain our management approach and dividends.

1

• By developing the three generations of railways of conventional lines,
  the Tokaido Shinkansen, and the Chuo Shinkansen in an integrated manner going forward, JR Central will continue to vigorously fulfill its mission.
• First, I would like to explain our management approach.
• As a railway operator, our top priority is safety. Given the safety of transportation, we will create economic value as well as social value by providing services trusted by customers through safe and reliable transportation.
• Meanwhile, the Company's financial performance has been hit significantly by the so-called"COVID-19 pandemic." While the use of railway services and group revenues of our businesses are on a recovery trend, people's behavioral patterns have changed significantly due to the COVID-19 pandemic. For this reason, we have formulated a management strategy to respond to such changes.
• More specifically, as we have already announced, we are working vigorously on reinforcement of earning power. The two pillars of reinforcement of earning power are "Initiatives for Revenue Expansion" based on innovative ideas and "Reform of Business Operations" to reduce fixed costs by ¥80 billion (equivalent approximately to 10% of operating expenses) on a non-consolidated basis over 10 to 15 years. Through these efforts, we will soon reestablish a virtuous cycle of our ESG management practice.
• Looking ahead to the future, we will also continue to push forward with the Chuo Shinkansen Project in order to prepare thoroughly for risks, such as future aging of the Tokaido Shinkansen and large-scale disasters.
• By developing the three generations of railways of conventional lines, the Tokaido Shinkansen, and the Chuo Shinkansen in an integrated manner through these efforts, we will continue going forward to vigorously fulfill our mission to
  "contribute to the development of Japan's main transportation artery and social infrastructure."

2

Stimulating travel demand for business and sightseeing

S Work P Seats

⃝ Work to expand the use of railway services and increase revenues by stimulating demand and enhancing added value

⃝Now, I present you with our specific initiatives that are currently underway to achieve "Initiatives for Revenue Expansion," the second pillar of "reinforcement of earning power."

⃝In order to stimulate business trip demand, we conducted a "Let's Go Meet" campaign, intending to support the recovery of vigorous economic activities by reinstating the network among businesspersons through meeting in person. In addition, the Chartered Shinkansen Package, a service to allow customers to charter a whole car of the Tokaido Shinkansen to, for example, hold an event of their own, has drawn attention of many customers and received more than 30 inquiries since its launch last year, including reservations for future travel.

⃝In order to stimulate sightseeing demand, in addition to our traditional promotional approach of developing attractive sightseeing materials for destinations along our lines, such as Kyoto and Nara, we have been implementing initiatives based on unprecedented approaches and new ideas. As part of "Oshi Travel Update," which proposes updated "Oshi Travel," in which people pursue their own favorites, for example, we have held various campaigns in collaboration with the entertainment industry in connection with popular animation, movies, games, etc., including collaboration with the "Love Live! Sunshine!!" project. In addition, the Doctor Yellow ride experience event, which was held as one of the campaigns to commemorate 10 million EX Service members, received about 100 times more applications than the capacity, which helped stimulate new demand.

⃝Besides stimulating demand, we have been enhancing initiatives to improve convenience for customers using our services. For example, we will install a partition at some of the B seats in the S Work car, which is car 7 of Nozomi, and start to offer A and C seats on both sides as "S Work P Seats" in or after October this year. We will also enhance, with price increases, the Japan Rail Pass services for foreign travelers to Japan to allow them to use the pass also for Nozomi with additional charges. Although we have not taken measures to increase unit prices very often, we will work actively going forward to provide better services and receive money that matches them.

3

• This slide is about the future direction of group businesses.
• In order to improve management efficiency, we will carry out a merger between Tokai Kiosk and JR-CENTRAL PASSENGERS in October 2023 to form JR Tokai Retailing Plus. This is part of our efforts to increase the attractiveness and profitability of shops inside stations.
• We will also meet the demand for luxury products and services. For example, JR Nagoya Takashimaya has been opening a men's section that puts together 18 overseas luxury brands to meet strong demand for luxury goods and services in the Tokai area. Ahead of the full opening, the first Louis Vuitton shop that mainly focuses on men's products in the Tokai area will open on April 29, 2023. At
  Nagoya Marriott Associa Hotel, a major renovation of suite rooms is scheduled to meet the needs of high net worth individuals and inbound customers.
• As for real estate development in areas along rail lines, we have acquired a development site at a distance of a 3-minute walk from the Hachijo east exit of Kyoto Station, and an attractive hotel for both Japanese and foreign guests is scheduled to open in FY2026. The JR Central Group will continue to actively promote real estate development in areas along rail lines both in and outside station locations.
• We will also start the TOKAI STATION POINT program, a shared point program that is available for use in shops inside the stations of the JR Central Group (approximately 1,000 shops). Points are returned at a certain percentage of the purchase amount while we provide coupon and campaign information to stimulate consumption within the Group. We are also considering the implantation of coordination between the shared point program and the EX Service.

4

• We will strengthen and accumulate human capital through human resource development and the creation of a rewarding workplace while developing a corporate culture of "thinking freely, discussing a lot, and tenaciously getting the job done."
• We strive to increase employee engagement to maximize corporate value.
• • We will conduct an engagement survey of all employees for the first time this fiscal year.

JR Central's human capital management (schematic diagram)

• JR Central believes that human resources are the most significant management resources. The basic philosophy of our human capital management is to invest effectively in the education, training, etc. of recruited human resources and make the most of their improved abilities.
• We will strengthen and accumulate human capital through human resource development by actively promoting human resource development and the creation of a rewarding workplace while developing a corporate culture of "thinking freely, discussing a lot, and tenaciously getting the job done." Amid changes in the environment surrounding the Company, such as changes in behavioral patterns of customers and intensification of natural disasters, we will work to create a strong organization that can develop and realize various new measures, such as
  "reinforcement of earning power."
• As part of our efforts to monitor employee engagement regularly and quantitatively, we have recently conducted an engagement survey for the first time of 3,700 employees who mainly work at the head office and will conduct a similar survey of all employees in autumn. By increasing employee engagement, we will in turn bring out more abilities of employees, strengthen the power of our organization, improve labor productivity, and maximize our corporate value.

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