Central Japan Railway : Summary of the Consolidated Financial Results for the Year Ended March 31, 2023262.8KB

[TRANSLATION]

[Supplemental Material 1]

Summary of the Consolidated Financial Results for the Year Ended March 31, 2023

April 26, 2023

Central Japan Railway Company

• The Company's overall operating revenues on a consolidated basis increased year on yearmainly due to an increase in passenger volumes for both the Tokaido Shinkansen and conventional lines despite the impact of the COVID-19pandemic
• Both operating revenues and income increased, although operating expenses increased mainly due to an increase in the Company's non-personnelexpenses and a higher cost of sales recorded by group companies.
• Next fiscal year, the Company will continue to carry out its mission as a transportation service provider by giving top priority to ensuring safe and reliable transportation. At the same time, in light of the significant changes in the environment surrounding the Company, including the changes in work styles accelerated by the COVID-19 pandemic and the decline in working population, the Company will make full-scale efforts to implement a "Reform of Business Operations" that builds an efficient business execution system using the latest technologies such as ICT, and achieve "revenue growth" by implementing innovative measures.
• For the fiscal year under review, the Company will pay a year-end dividend of 70 yen per share, an increase of 5 yenfrom the dividend forecast announced in April last year. The forecast for the next fiscal year is also 70 yen per share for both interim and year-enddividends.

1. Summary of Consolidated Results for the Year Ended March 31, 2023

1. Operating revenues (1,400.2 billion yen; a 465.1 billion yen or a 49.7% increase)

• The Company's transportation revenues increased by 412.7 billion yen (62.8%) to 1,069.9billion yen in the year ended March 31, 2023, as compared with the year ended March 31, 2022.
• • As for the Tokaido Shinkansen, the Company worked to enhance its transportation services by, among other things, adding extra trains flexibly to respond to demand by leveraging the "12 Nozomi Timetable." In addition, the company began selling the "chartered Shinkansen package," which allows customers to hold original events on board, sold attractive travel packages such as "Zurashi Travel" and "Oshi Travel Update," and launched "Izaiza Nara," a new travel campaign. Furthermore, the Company improved stations and cars so that they are more suitable for working in. This included the trial introduction of the "Business Booth," a private room in certain N700S cars, and the implementation of semi-private work booths in all stations served by "Nozomi" trains. In addition, the Company also developed the
    "Ai-ni-iko (Let's go meet)" campaign as an initiative to encourage business users to use its services for business trips.
  • 1As for the conventional lines, for limited express trains such as "Shinano" and "Hida," the Company added extra trains and cars flexibly to respond to any increases in demand as well as standardized all Hida commuter trains to Series HC85, a new limited express train employing a hybrid system.
  • As a result, transportation revenues from the Tokaido Shinkansen increased by 396.3 billion yen (67.2%) to 986.1 billion yen in the year ended March 31, 2023, as compared with the year ended March 31, 2022, while transportation revenues from conventional lines increased by 16.4 billion yen (24.3%) to 83.8 billion yen in the year ended March 31, 2023, as compared with the year ended March 31, 2022.
• As for the non-railway business, the Company sought to increase revenues, mainly through the integrated operation of JR CENTRAL TOWERS and JR GATE TOWER, which celebrated its fifth anniversary, while implementing business strategies designed to meet customer needs. As a result, overall operating revenues on a consolidated basis increased.

1. Operating expenses (1,025.7 billion yen; a 92.3 billion yen or a 9.9% increase)
2. Operating income (374.5 billion yen; a 372.7 billion yen positive change)
3. Non-operatingincome/loss (-67.0 billion yen; a 1.9 billion yen positive change)
4. Ordinary income (307.4 billion yen; a 374.7 billion yen positive change)
5. Net income attributable to owners of the parent (219.4 billion yen; a 271.3 billion yen positive change)

1. Conditions of Cash Flow

1. Net cash provided by (used in) operating activities 486.7 billion yen (a 414.9 billion yen increase)
2. • Mainly due to an increase in the Company's transportation revenues, there was an increase of 414.9 billion yen compared with the 71.7 billion yen net cash provided by the year ended March 31, 2022.

1. Net cash provided by (used in) investing activities: -175.0billion yen (a 21.9 billion yen decrease)
2. • Mainly due to decreased proceeds from the redemption of investments, there was a decrease of 21.9 billion yen compared with the 153.0 billion net cash used in the year ended March 31, 2022.
3. Net cash provided by (used in) financing activities: -220.6billion yen (a 201.4 billion yen decrease)
4. • Mainly due to increased expenditure from the redemption of short-term corporate bonds, there was a decrease of 201.4 billion yen compared with the 19.1 billion yen net cash used in the year ended March 31, 2022.
5. Cash and cash equivalents as of March 31, 2023 : 710.5 billion yen (a 91.0 billion yen increase)

3. Summary of Long-term Debt and Payables

• The balance of long-term debt and payables as of March 31, 2023 amounted to 4,949.8 billion yen. The balance of long-term debt and payables other than long-term debt for the Chuo Shinkansen construction increased by 8.1 billion yen from the end of the previous fiscal year to 1,949.8 billion yen.

4. Forecasted Results of Operations for the Year Ending March 31, 2024

• The forecasted results of operations for the next fiscal year shown below have been calculated by considering recent rail transportation trends, adopting the assumption that usage by customers will continue to recover and the further revitalization of socio- economic activities.

1. Operating revenues (1,566.0 billion yen; a 165.7 billion yen or an 11.8% increase)
2. • The Company's expected transportation revenue (1,222.0 billion yen; a 152.0 billion yen or a 14.2% increase)
3. Operating income (430.0 billion yen; a 55.4 billion yen increase or a 14.8% increase)
4. Ordinary income (357.0 billion yen; a 49.5 billion yen increase or a 16.1% increase)
5. Net income attributable to owners of the parent (250.0 billion yen; a 30.5 billion yen increase or a 13.9% increase)

5. Dividends (the Company)

• Year-enddividends for the fiscal year under review shall be 70 yen per share, an increase of 5 yen from the dividend forecast announced in April 2022.

• Interim and year-end dividends for the next fiscal year shall also be 70 yen per share, respectively.
• • Any fraction less than a tenth of the unit indicated is rounded down. (The same for Supplemental Material 2 and subsequent supplemental materials.)