SocialBusiness StrategyHighlight

Generating "Economic Value"

Creating "Social Value"

Corporate Data

SocialCreating“Social Value” －Social－

Conventional Lines and Group Businesses:
Maintenance and Development of Social Infrastructure
By continuing to strengthen conventional lines in the Tokairegion that form a network with the Tokaido Shinkansen, as wellas group businesses that are expected to generate synergies
with the railway business, such as the JR Central Towers andthe JR Gate Tower at Nagoya Station, JR Central is working to
expand business revenues and contribute to the maintenanceand development of local social infrastructure.

limited express trains through FY2023. The Series HC85 hasachieved commercial operation as the first hybrid powered
electric car in Japan to reach a top speed of 120 km/h.
Moreover, in order to offer convenient timetables for local
train passengers, we will continue to develop a convenient
rapid train system, operate trains at regular intervals, andincrease the frequency of services or the number of cars per
train, especially during the morning and evening commuting
hours. Furthermore, we put a new type of commuter electricrailcar, the Series 315, into commercial operation. We planto gradually introduce it to conventional lines centered on
the Nagoya and Shizuoka City areas in the period throughFY2025. By launching these new vehicles, we will improve
services for our customers by providing safety, stability,comfort andconvenienceand by further
enhancingenvironmentalperformance.

New Series HC85 limited express vehicle

Sales and marketing in coordination with local communities along our lines
Areas along our lines are blessed with many tourist
resources. While continuing to strengthen our relationships
with local residents and travel agencies at tourist spots in ouroperating areas, we are working to stimulate tourist demandby publicizing attractive tourist resources at stations, ontrains, through our website and by other means and by taking
various sales and marketing measures.
For example, we offer a train journey with a sense of
the extraordinary by operating the express train“Iida Line
Unexplored Stations”on the Iida Line, which runs throughremote mountain stations and scenic sections, during
periods of high tourist demand. Furthermore, we are holding
the“Sawayaka Walking”service, offering free-of-charge
walking tours requiring no reservation that start from ourstations and visit wayside sightseeing spots. We are also53

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

The JR Central Group undertakes businesses inTransportation, Merchandise and Other, Real Estate, andOther areas. The Transportation segment involves railway
and bus businesses. The Merchandise and Other segment
manages department stores and provides sales services
for goods and food in stations and trains. The Real Estatesegment develops commercial facilities in stations andareas under elevated tracks and also leases real estate,such as station buildings. In the Other segment, we manage
hotels, travel agencies, advertising agencies, etc. We also
manufacture rolling stock and maintain, inspect, and repair
our railway facilities in this segment.

Uniform management of JR Central Towers and JR Gate Tower

Mission as social infrastructure of the local community
JR Central undertakes the mission of supporting social
infrastructure. That is, in an integrated manner with themanagement of Japan’s main transportation artery, wetake a locally oriented approach in operating a networkof conventional lines in the Tokai Region, centered on theNagoya and Shizuoka areas, thereby supporting the people
in these areas. The conventional lines operated by JR Central,covering 12 railway sections, reach approximately 1,400 km
in operating kilometers, which is approximately 2.5 times thelength of the Tokaido Shinkansen, and play a role as a meansof transportation for daily life, including commuting to workand school. In other words, they serve as social infrastructureof the local community. We have steadily improved ourservices by, for example, launching new vehicles and thereby
increasing the speed and frequency of the services.
In order to enhance the convenience of limited express
trains, we will continue to develop an integrated networkof the Shinkansen and conventional lines by improving
connections between the two and increase flexibility in theoperation by increasing the frequency of services or numberof cars per train to absorb demand fluctuations caused byseasonal factors and events. In FY2022, we began putting
the new hybrid powered limited express“Series HC85”intocommercial operation for our limited express train“Hida.”
Series HC85 has been introduced to all our“Hida”and“Nanki”

JR Central Group’s affiliated businesses

collaborating with local governments, travel agencies, etc.
through the Destination Campaign organized jointly by thesix JR companies to develop attractive tourism resources andproducts and operate sightseeing trains, etc., contributing
to regional
revitalization
as well as
promotingthe use of theShinkansen
andconventionallines.
Kowada Station and“Iida Line Unexplored Stations”express train

The development of Nagoya Station, the largest stationin our network, is a pillar of our affiliated businesses. The JR
Central Towers (hereinafter, the‘Towers”), opened in 2000,and the JR Gate Tower (hereinafter, the“Gate Tower”),opened in 2017, have been recognized as landmarks ofNagoya and have made a significant contribution to theeconomic development of the Chubu region. We will continue
to operate both buildings in a uniform manner and work toincrease earnings by demonstrating synergistic effects bysegregating the concepts of the businesses of both facilities
and promoting collaboration in sales.

JR Cent ral Towers
Towers is a complex consisting of commercial facilities,
hotels, offices, etc., with a height of 245 m and a total floorarea of approximately 417,000 m2.
The office business has enjoyed a high occupancy ratesince its launch. All office spaces are almost fully occupied.
JR Nagoya Takashimaya, ideally located directly above
Nagoya Station, attracts large numbers of visitors. In theperiod between FY2021 and FY2022, we secured revenue

through measures such as arenovation of the living section.
Nagoya Marriott Associa Hotelis rated highly for its convenient
location directly above the station,
its spectacular view from the topfloors, its upscale facilities, andother features.

Renovated kitchen andtableware section inTakashimaya

JR G at e Tower
JR Gate Tower is a high-rise complex building with aheight of approximately 220 m and a total floor areaof approximately 260,000 m 2 that stands adjacent toTowers and consists of commercial facilities, a hotel,
offices, etc.
The office spaces are almost fully occupied due totheir prime location directly above Nagoya Station,
which the Chuo Shinkansen will serve in the future.
Housing about 160 fashion stores, Takashimaya
Gate Tower Mall offers products in categories andprice ranges not found in the adjacent department
store. Nagoya JR Gate Tower Hotel, together withNagoya Marriott Associa Hotel, is highly regarded
by a wide range of guests as a hotel that focuses
mainly on accommodation, offering both comfort andfunctionality.
By integrating themanagement and operation of
the entire building with Towers,
we are pursuing efficiency
while adding new content notfound in the Towers, further
enhancing the attractiveness ofTakashimaya
the two buildings.
Gate Tower Mall

Profitability improvement of JR Central Group’s affiliated businesses
To respond to changes in the business environment, wewill thoroughly implement low-cost and efficient business
operations and promote the management efficiency ofeach Group company. We will also start and expand new
businesses to improve our profitability further by taking
advantage of our experience gained from synergistic effects
with the railway business.
For example, in relation to the improvement of management
efficiency of group companies, we carried out a merger
between Tokai Kiosk and JR-CENTRAL PASSENGERS inOctober 2023 to form JR Tokai Retailing Plus for the purposeof improving the attractiveness and profitability of commercial
facilities in stations.
JR Nagoya Takashimaya, which had promoted step-bystep extensive renewal of the luxury-brands floor, including
setting up a new men’s section, grand opened the floor on

September 29, 2023. A total of 52 brands are available on thisfloor, the largest lineup of merchandise in the Tokai area.
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 isscheduled to open in FY2026.
We will also start the TOKAISTATION POINT program, ashared point program that isavailable for use in shops inside
the stations of the JR Central「TOKAI STATION POINT」
Group (approximately 1,000
Main visualshops), in October 2023.
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

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